2001 Legislative Session: 5th Session, 36th Parliament
FIRST READING


The following electronic version is for informational purposes only.
The printed version remains the official version.


HONOURABLE PAUL RAMSEY
MINISTER OF FINANCE AND
 CORPORATE RELATIONS AND
MINISTER RESPONSIBLE FOR
NORTHERN DEVELOPMENT


BILL 4 -- 2001

BUDGET MEASURES IMPLEMENTATION ACT, 2001

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:

Corporation Capital Tax Act

1 Section 8 of the Corporation Capital Tax Act, R.S.B.C. 1996, c. 73, is amended

(a) by renumbering the section as section 8 (1), and

(b) by adding the following subsection:

(2) For the purposes of subsection (1), a corporation is registered or licensed under the laws of a province to trade in securities if the corporation is

(a) registered as a dealer under the Securities Rules, B.C. Reg. 194/97, unless that corporation is registered only as a security issuer, or

(b) registered or licensed under the laws of a province other than British Columbia to trade in securities unless the corporation's registration or licence is equivalent to registration only as a security issuer.

2 Section 11 (2) (f) (i) is repealed and the following substituted:

(i) the interest held by the corporation as a beneficiary of a qualifying environmental trust within the meaning of section 248 (1) of the Income Tax Act (Canada), and .

3 Section 13 (1) is amended in the definition of "eligible property"

(a) by striking out "and" at the end of paragraph (c), and

(b) by striking out everything after paragraph (c) and substituting the following:

(d) is, from the date of its acquisition to and including the end of the taxation year in respect of which the corporation claims a deduction under this section, owned by the corporation,

(e) is, in the taxation year in which it is acquired or in a subsequent taxation year, used primarily for one or more of the purposes referred to in subsection (2) (a) to (k) in British Columbia

(i) by the corporation, or

(ii) if the corporation leases the property, as lessor, under an operating lease, by the lessee under that lease, and

(f) is not, from its acquisition to and including the end of the taxation year in respect of which the corporation claims a deduction under this section, used primarily for any purpose other than a purpose, in British Columbia, referred to in subsection (2) (a) to (k),

but does not include eligible tourism property; .

4 Section 13 (1) is amended in the definition of "eligible tourism property"

(a) by striking out "and" at the end of paragraph (b), and

(b) by repealing paragraph (c) and substituting the following:

(c) is, from the date of its acquisition to and including the end of the taxation year in respect of which the corporation claims a deduction under this section, owned by the corporation,

(d) is, in the taxation year in which it is acquired or in a subsequent taxation year, used primarily in prescribed tourism activities in British Columbia

(i) by the corporation, or

(ii) if the corporation leases the property, as lessor, under an operating lease, by the lessee under that lease, and

(e) is not, from its acquisition to and including the end of the taxation year in respect of which the corporation claims a deduction under this section, used primarily for any purpose other than a prescribed tourism activity in British Columbia.


Finance and Corporate Relations Statutes Amendment Act, 2000

5 Section 4 of the Finance and Corporate Relations Statutes Amendment Act, 2000, S.B.C. 2000, c. 25, is amended by striking out "Section 8" and substituting "Section 8 (1)".


Financial Administration Act

6 Section 56.1 (3) (b) of the Financial Administration Act, R.S.B.C. 1996, c. 138, is amended by striking out "the amount amortized" and substituting "the estimated amount to be amortized".


Home Owner Grant Act

7 Section 8 of the Home Owner Grant Act, R.S.B.C. 1996, c. 194, is amended by adding the following subsection:

(1.1) Despite subsection (1), a person who is entitled to a grant under section 2 may apply to a collector for the grant in respect of the current year taxes at any time before January 1 of the next year on the form and in the manner prescribed.

8 Section 10 (2) is repealed and the following substituted:

(2) If the collector disapproves the application for a grant or approves it for an amount less than that applied for, the collector must, within 14 days of making a determination, provide the applicant with the reasons for the determination.

9 The following section is added:

Alternative rural area tax collection schemes

15.2 (1) If the Lieutenant Governor in Council establishes an alternative tax collection scheme under section 12.1 of the Taxation (Rural Area) Act and amounts are paid in accordance with the scheme before July 2 in the year, for the purposes of this Act, those amounts are deemed to be part of the current year taxes and are to be considered part of the indebtedness for the current year taxes.

(2) For current year taxes to which subsection (1) applies, if all or part of the amount of a grant remains unapplied after being applied as a payment towards the current year taxes, the Minister of Finance and Corporate Relations must deal with the unapplied amount in accordance with section 14 (3).


Hotel Room Tax Act

10 Section 1 of the Hotel Room Tax Act, R.S.B.C. 1996, c. 207, is amended

(a) by repealing the definition of "accommodation" and substituting the following:

"accommodation" means the provision of lodging in hotels and motels, and other lodging designated by the Lieutenant Governor in Council, but does not include lodging exempted by the Lieutenant Governor in Council; ,

(b) in the definition of "operator" by adding ", other than a tourism agent," after "a person",

(c) in the definition of "purchaser" by adding "from an operator" after "acquires accommodation",

(d) in the definition of "purchaser" by striking out "or" at the end of paragraph (b), by adding ", or" at the end of paragraph (c) and by adding the following paragraph:

(d) as a tourism agent for inclusion in a tourism service provided or to be provided by the tourism agent; , and

(e) by adding the following definition:

"tourism agent" means a person who purchases accommodation from one or more operators and who, for payment, makes the whole or any part of that accommodation available for use by one or more persons as part of a tourism service.


Income Tax Act

11 Section 1 of the Income Tax Act, R.S.B.C. 1996, c. 215, is amended

(a) in subsection (1) by repealing the definition of "mining reclamation trust",

(b) in subsection (1) by repealing the definition of "prescribed", and

(c) by repealing subsection (4) and substituting the following:

(4) For the purposes of this Act, unless they are at variance with the definitions in this Act or in the regulations made under this Act, the definitions in the federal Act, and the definitions and interpretations made by federal regulations, apply.

12 Section 4.4 is amended by repealing the descriptions of B and D and substituting the following:

B is the smaller of

(a) $200, and

(b) the amount that, in computing the individual's deduction under section 118.1 (3) of the federal Act for the year, is used in the formula in that section for the individual's total gifts less any portion of that amount used in calculating a deduction claimed for a preceding taxation year by the individual or the individual's spouse or common-law partner under this section or under a provision of an income tax statute of an agreeing or non-agreeing province that is similar to this section,

D is the amount that, in computing the individual's deduction under section 118.1 (3) of the federal Act for the year, is used in the formula in that section for the individual's total gifts less any portion of that amount used in calculating a deduction claimed for a preceding taxation year by the individual or the individual's spouse or common-law partner under this section or under a provision of an income tax statute of an agreeing or non-agreeing province that is similar to this section.

13 Section 4.5 is amended by renumbering the section as section 4.5 (1) and adding the following subsection:

(2) The same 24 or 12 month period that is used in the formula in section 118.2 (1) of the federal Act for B in computing the individual's deduction under that section for the year must be used in computing the individual's deduction under this section for the year.

14 Section 4.84 is amended

(a) by repealing subsection (1), and

(b) by repealing subsection (3) and substituting the following:

(3) Section 120.4 of the federal Act applies for the purposes of this Act except that, in addition to any other necessary modifications required for this Act,

(a) subsection (2) of this section applies instead of section 120.4 (2) of the federal Act,

(b) the reference in section 120.4 (3) (b) (i) of the federal Act to section 121 of the federal Act must be read as a reference to section 4.69 of this Act [dividend tax credit], and

(c) the reference in section 120.4 (3) (b) (i) of the federal Act to section 126 of the federal Act must be read as a reference to section 4.71 of this Act [foreign tax credit].

15 Section 9 (1) is amended by striking out "cohabiting spouse or common-law partner" wherever it appears and substituting "cohabiting spouse".

16 Sections 10 (1) (b) and 11 (2), (3) and (4) (a) are amended by striking out "or common-law partner" wherever it appears.

17 Section 13.1 is amended by adding the following subsection:

(5) Without limiting any provision of this or any other enactment, the Provincial minister and the minister responsible for the administration of the Employee Investment Act may

(a) collect information that is relevant to a tax credit being claimed or already claimed under this section, and

(b) share with each other, in accordance with an information-sharing agreement entered into under section 65, information relevant to a tax credit being claimed or already claimed under this section.

18 Section 14 is amended by striking out "section 124 (4) (a) of the federal Act" wherever it appears and substituting "section 124 (4) of the federal Act".

19 Section 16 is amended by striking out "section 124 (4) (a) of the federal Act" wherever it appears and substituting "section 124 (4) of the federal Act".

20 Section 17 (9) is amended by striking out "233 and 236 of the federal Act" and substituting "233 (1) and 236 of the federal Act".

21 Section 18.1 (g) is repealed.

22 Section 21 is amended by adding the following subsection:

(15) Without limiting any provision of this or any other enactment, the Provincial minister and the minister responsible for the administration of the Small Business Venture Capital Act may

(a) collect information that is relevant to a tax credit being claimed or already claimed under this section, and

(b) share with each other, in accordance with an information-sharing agreement entered into under section 65, information relevant to a tax credit being claimed or already claimed under this section.

23 Section 25 is amended

(a) by repealing subsection (1) and substituting the following:

(1) In this section, "qualifying environmental trust" means a qualifying environmental trust, as defined in section 248 (1) of the federal Act, except that a reference in that definition to "province" is to be read as a reference to British Columbia. ,

(b) in subsection (2) by striking out "mining reclamation trust" and substituting "qualifying environmental trust",

(c) in subsection (3) by striking out "a beneficiary of a mining reclamation trust may deduct from the tax otherwise payable under this Part" and substituting "a beneficiary of a qualifying environmental trust may claim", and

(d) by repealing subsections (5), (6) and (7) and substituting the following:

(5) A taxpayer that has claimed and is eligible for a tax credit under subsection (3) for a taxation year is deemed to have paid, at the time referred to in section 156.1 (4) or 157 (1) (b) of the federal Act, as the applicable section relates to the taxation year of the taxpayer, the amount of the tax credit on account of the taxpayer's tax payable under this Act.

24 Section 25.1 (1) is amended

(a) in paragraph (b) of the definition of "eligible taxpayer" by striking out "other than a corporation that" and substituting "other than a corporation all or part of whose taxable income is at any time in the taxation year exempt from tax under Part 1 of the federal Act or a corporation that, at any time in the taxation year,", and

(b) in the definition of "excluded expense" by adding the following paragraph:

(e.1) an outlay or expense incurred by the taxpayer in the course of earning income in the taxation year if any of the income is exempt income, as defined in section 248 (1) of the federal Act, or is exempt from tax under Part 1 of the federal Act; .

25 Section 34 is amended by striking out "and 161 (1) to (7), (9) and (11) of the federal Act" and substituting ", 161 (1) to (7), (9) and (11) and 161.1 of the federal Act".

26 Section 38 (1) is repealed and the following substituted:

(1) Section 163 (1) and (2) (a), (c), (d), (e) and (f) of the federal Act applies for the purposes of this Act except that, in addition to any other necessary modifications, section 163 (2) of the federal Act is to be read without the references to section 120 (2) and as though

(a) a reference in section 163 (2) (c) of the federal Act to "subsection 122.61 (1)" were to section 10 (3) of this Act,

(b) a reference in section 163 (2) (d) of the federal Act

(i) to "subsection 127.1 (1)" were to section 98 (2) of this Act, and

(ii) to "the information provided in the return or form filed for the year pursuant to that subsection" were to "the information in the return or form filed under section 103 of this Act",

(c) a reference in section 163 (2) (e) of the federal Act

(i) to "subsection 127.41 (3)" were to "section 25.1 (5) of this Act", and

(ii) to "the person's claim for the year under that subsection" were to "the person's application for the year filed under section 25.1 (6) of this Act", and

(d) a reference in section 163 (2) (f) of the federal Act

(i) to "subsection 125.4 (3)" were to section 84 of this Act, and

(ii) to "the information provided in the return filed for the year pursuant to that subsection" were to "the information provided in the application filed for the year under section 85 (1) of this Act".

(1.1) Section 163 (2.1), (3) and (4) of the federal Act applies for the purposes of this Act.

27 Section 40 (1) is repealed and the following substituted:

(1) If the return of a taxpayer's income for a taxation year has been made within 3 years from the end of the year, the minister may

(a) before mailing the notice of assessment for the year, where the taxpayer is an accredited production corporation or eligible production corporation as defined in section 79 of this Act and an amount is deemed under section 84 of this Act to have been paid on account of its tax payable under this Act for the year, refund all or part of any amount claimed in the return as an overpayment for the year, not exceeding the amount so deemed to have been paid,

(b) before mailing the notice of assessment for the year, where the taxpayer is a qualifying corporation as defined in section 97 of this Act and an amount is deemed under section 98 (2) of this Act to have been paid on account of its tax payable under this Act for the year, refund all or part of any amount claimed in the return as an overpayment for the year, not exceeding the amount so deemed to have been paid, and

(c) on or after mailing the notice of assessment for the year, refund, without application, any overpayment for the year, to the extent that the overpayment was not refunded under paragraph (a) or (b).

(1.1) Section 164 (1) (b) to (1.31) and (1.5) to (7) of the federal Act applies for the purposes of this Act.

28 Section 59 is amended by striking out "233 and 236 of the federal Act" and substituting "233 (1) and 236 of the federal Act".

29 Section 64 is repealed and the following substituted:

Communication of information and related offences

64 (1) In this section:

"authorized person" means a person who is engaged or employed, or who was formerly engaged or employed, by or on behalf of the government of British Columbia to assist in carrying out the provisions of this Act;

"designated person" has the same meaning as in section 241 (10) of the federal Act;

"official" means any person

(a) who is employed in the service of, who occupies a position of responsibility in the service of, or who is engaged by or on behalf of the government of British Columbia, another province or Canada, or

(b) who was formerly so employed or formerly occupied such a position or was formerly so engaged;

and, for the purposes of subsections (2) and (3), the portion of subsection (5) before paragraph (a) and section 241 (5) of the federal Act as applied by this section, "official" includes a designated person;

"taxpayer information" means information of any kind and in any form relating to one or more taxpayers

(a) that is obtained for the purposes of this Act

(i) by or on behalf of the Provincial minister, or

(ii) if a collection agreement has been entered into, by or on behalf of the Provincial Minister or the Minister of National Revenue or both, or

(b) that is prepared from information referred to in paragraph (a),

but does not include information that does not directly or indirectly reveal the identity of the taxpayer to whom the information relates.

(2) Except as authorized by this section, an official must not

(a) knowingly provide, or knowingly allow to be provided, to any person any taxpayer information,

(b) knowingly allow any person to have access to any taxpayer information, or

(c) knowingly use any taxpayer information otherwise than in the course of the administration and enforcement of this Act or for a purpose for which it was provided under this section.

(3) Despite any other enactment or law, an official must not be required, in connection with any legal proceedings, to give or produce evidence relating to any taxpayer information.

(4) Subsections (2) and (3) do not apply in respect of legal proceedings referred to in section 241 (3) of the federal Act.

(5) Subject to subsection (6), an official may

(a) provide to any person taxpayer information that can reasonably be regarded as necessary for the purposes of the administration or enforcement of this Act, solely for those purposes,

(b) provide to any person taxpayer information that can reasonably be regarded as necessary for the purposes of determining

(i) any tax, interest, penalty or other amount that is or may become payable by the person under this Act,

(ii) any refund or tax credit to which the person is or may become entitled under this Act, or

(iii) any other amount that is relevant for the purposes of a determination under subparagraph (i) or (ii),

(c) provide taxpayer information

(i) to an official of the Department of Finance of the Government of Canada, solely for the purposes of the formulation or evaluation of fiscal policy,

(ii) to an official solely for the purposes of the initial implementation of a fiscal policy or for the purposes of the administration or enforcement of an Act of the Parliament of Canada that provides for the imposition and collection of a tax or duty,

(iii) to an official solely for the purposes of the administration or enforcement of an enactment of British Columbia or another province that provides for the imposition or collection of a tax or duty,

(iv) to an official of the Ministry of Finance and Corporate Relations, solely for the purposes of the formulation or evaluation of fiscal policy, or

(v) to an official solely for the purposes of setting off against any sum of money that may be due or payable by the government of British Columbia a debt due to that government or to the government of another province or of Canada,

(d) provide taxpayer information, or allow the inspection of or access to taxpayer information, as the case may be, under, and solely for the purposes of,

(i) sections 44 (2) and 61 (1) of the Freedom of Information and Protection of Privacy Act, or

(ii) sections 9 (2), 17 and 18 of the Auditor General Act,

(e) provide taxpayer information solely for the purposes of sections 17 to 19 of the Financial Administration Act,

(f) use taxpayer information to compile information in a form that does not directly or indirectly reveal the identity of the taxpayer to whom the information relates,

(g) use, or provide to any person, taxpayer information solely for a purpose relating to the supervision, evaluation or discipline of an authorized person by the government in respect of a period during which the authorized person was employed by, or engaged by or on behalf of, the government to assist in the administration or enforcement of this Act, to the extent that the information is relevant for the purpose,

(h) use taxpayer information relating to a taxpayer to provide information to the taxpayer,

(i) provide taxpayer information to an official or a designated person solely for the purpose of permitting the making of an adjustment to

(i) a payment made on the basis of a means, needs or income test, or

(ii) a payment under an enactment of British Columbia in respect of a child within the meaning of the enactment,

if the purpose of the adjustment is to take into account the amount determined under section 10 (3) (a), and

(j) provide, or allow inspection of or access to, taxpayer information to or by any person otherwise legally entitled to it under an enactment of British Columbia solely for the purposes for which that person is entitled to the information.

(6) An official must not under subsection (5) (a) to (c) or (e) to (j) provide taxpayer information to, or allow inspection of or access to taxpayer information by, an official of

(a) a public body, as defined in the Freedom of Information and Protection of Privacy Act, other than the Ministry of Finance and Corporate Relations,

(b) the government of Canada, or

(c) the government of another province,

except in accordance with an agreement entered into under section 65 or 69.

(7) Section 241 (3.1), (4.1) and (5) of the federal Act apply for the purposes of this Act.

(8) To the extent of any inconsistency or conflict with sections 32 and 33 of the Freedom of Information and Protection of Privacy Act, this section applies despite that Act.

(9) A person who

(a) contravenes subsection (2), or

(b) knowingly contravenes an order made under section 241 (4.1) of the federal Act as it applies for the purposes of this Act,

commits an offence.

(10) A person

(a) to whom taxpayer information has been provided for a particular purpose under subsection (5) (b), (d), (g) or (j), or

(b) who is an official to whom taxpayer information has been provided for a particular purpose under subsection (5) (a), (c), (e) or (i)

and who for any other purpose knowingly uses, provides to any person, allows the provision to any person of, or allows access to, that information commits an offence.

(11) A person who commits an offence under subsection (9) or (10) is liable to a fine not exceeding $5 000 or to imprisonment for a term not exceeding 12 months, or to both.

30 Section 65 (1) to (3) is repealed and the following substituted:

(1) In this section,

"information-sharing agreement" means an agreement or arrangement to exchange, by electronic data transmission, electronic data matching or any other means,

(a) information for a purpose referred to in section 64 (5), or

(b) information referred to in section 13.1 (5), 21 (15), 25.1 (9), 77.1 or 95 (2);

"taxpayer information" has the same meaning as in section 64.

(2) With the prior approval of the Lieutenant Governor in Council, the Provincial minister may enter into an information-sharing agreement with

(a) the government of Canada or an agency of that government,

(b) the government of a province or other jurisdiction in Canada or an agency of that government, or

(c) a public body as defined in the Freedom of Information and Protection of Privacy Act.

(3) Subject to subsection (3.1), taxpayer information obtained by the Provincial minister under an information-sharing agreement or under an agreement entered into under section 69 may only be used or disclosed for the purpose for which it was obtained under the applicable agreement.

(3.1) Subsection (3) does not prevent

(a) any taxpayer information obtained by the Provincial minister under an information-sharing agreement with the government of Canada or an agency of that government or under an agreement entered into under section 69 from being used or disclosed for the purpose of administering and enforcing an enactment administered by the Provincial minister that provides for the imposition and collection of a tax, or

(b) any taxpayer information obtained by the Provincial minister under an information-sharing agreement from being used or disclosed for the purpose of administering and enforcing an Act of the Parliament of Canada that provides for the imposition and collection of a tax or duty.

31 Section 77 is amended by striking out "the Ministries of Environment, Lands and Parks and of Forests" and substituting "the Ministry of Environment, Lands and Parks".

32 The following section is added:

Timber harvest information

77.1 (1) In this section, "timber harvest information" means

(a) the name and address of persons who harvest timber in British Columbia and the applicable timber mark number,

(b) the volume of timber harvested in British Columbia by each of those persons, and

(c) any stumpage paid or payable to the government by each of those persons.

(2) Without limiting any provision of this or any other enactment, the Provincial minister and the minister responsible for the administration of the Forest Act may

(a) collect timber harvest information that is relevant to the administration and enforcement of this Act, and

(b) share with each other, in accordance with an information-sharing agreement entered into under section 65 of this Act, timber harvest information that is relevant to the administration and enforcement of this Act.

33 Section 79 (1) is amended

(a) in the definition of "accredited production corporation" by striking out "but does not include a corporation described in any of paragraphs (a) to (f) of the definition of `eligible production corporation';" and substituting "but does not include a corporation all or part of whose taxable income is at any time in the taxation year exempt from tax under Part 1 of the federal Act or a corporation that, at any time in the taxation year, comes within any of paragraphs (a) to (f) of the definition of `eligible production corporation';'',

(b) in the definition of "assistance" by adding "a prescribed amount or" after "other than",

(c) in the definition of "eligible production corporation" by striking out "but does not include a corporation that" and substituting "but does not include a corporation all or part of whose taxable income is at any time in the taxation year exempt from tax under Part 1 of the federal Act or a corporation that, at any time in the taxation year," , and

(d) by adding the following definition:

"post-production work" means goods and services directly related to post-production activities, but does not include stock footage; .

34 Section 80 is amended

(a) by repealing subsection (1) (f) (i) and substituting the following:

(i) more than 50% of the copyright in the production is owned by the corporation or by the corporation and one or both of

(A) a BC-controlled eligible production corporation related to the corporation, and

(B) a prescribed person, and ,

(b) by adding the following subsections:

(1.1) For the purposes of subsection (1) (f) (i), a corporation referred to in that provision does not, or that corporation with one or both of the other persons referred to in that provision do not, own more than 50% of the copyright in a production unless it controls, or they control, within the meaning of the regulations, the copyright in the production.

(3) For the purposes of subsection (2) (a), "copyright in the production" means that portion of the copyright in the production that is not owned by the following:

(a) any person to whom section 149 (1) (l) of the federal Act applies if the person has a fund that is used to finance film or video productions;

(b) any federal or provincial government agency the mandate of which is related to the provision of financing to film or video productions in Canada. , and

(c) in subsection (2) (a) by striking out "beneficially".

35 Section 93 is amended by striking out "233 and 236 of the federal Act" and substituting "233 (1) and 236 of the federal Act".

36 Section 97 is amended in the definition of "BC qualified expenditure" by striking out "and" at the end of paragraph (d), by adding ", and" at the end of paragraph (e), and by adding the following paragraph:

(f) an expenditure incurred by the corporation in the course of earning income in the taxation year if any of the income is exempt income, as defined in section 248 (1) of the federal Act, or is exempt from tax under Part 1 of the federal Act; .

37 Section 104 (1) is amended

(a) in the definition of "BC qualified property" by adding ", other than excluded property," after "means property", and

(b) by adding the following definition:

"excluded property" means property acquired by a qualifying corporation in a taxation year in the course of earning income in the taxation year if any of the income is exempt income, as defined in section 248 (1) of the federal Act, or is exempt from tax under Part 1 of the federal Act; .


Logging Tax Act

38 Section 2 (b) of the Logging Tax Act, R.S.B.C. 1996, c. 277, is repealed and the following substituted:

(b) 150% of the credit that would have been allowable under section 127 (1) of the Income Tax Act (Canada) if

(i) the tax referred to in paragraph (a) had been paid, and

(ii) the tax otherwise payable by the taxpayer had, for the purposes of section 127 (1) of the Income Tax Act (Canada), been determined without allowing a deduction under section 127 (3) or (5) of the Income Tax Act (Canada).

39 Section 14 is amended

(a) by renumbering the section as section 14 (1),

(b) by repealing subsection (1) (d) and substituting the following:

(d) for the purpose of complying with an agreement or arrangement referred to in section 14.1; , and

(c) by adding the following subsections:

(2) Without limiting any provision of this or any other enactment, the minister and the minister responsible for the administration of the Forest Act may

(a) collect timber harvest information that is relevant to the administration and enforcement of this Act, and

(b) share with each other, in accordance with an information-sharing agreement or arrangement entered into under section 14.1 of this Act, timber harvest information that is relevant to the administration and enforcement of this Act.

(3) In this section, "timber harvest information" means

(a) the name and address of persons who harvest timber in British Columbia and the applicable timber mark number,

(b) the volume of timber harvested in British Columbia by each of those persons, and

(c) any stumpage paid or payable to the government by each of those persons.

40 The following section is added:

Information-sharing agreements or arrangements

14.1 (1) With the prior approval of the Lieutenant Governor in Council, the minister may, for the purposes set out in subsection (2), enter into an information-sharing agreement or arrangement with any of the following:

(a) the government of Canada or an agency of that government;

(b) the government of a province or other jurisdiction in Canada or an agency of that province or other jurisdiction;

(c) a public body as defined in the Freedom of Information and Protection of Privacy Act.

(2) An information-sharing agreement or arrangement may be entered into for the purposes of the administration of this Act, the Income Tax Act or the Income Tax Act (Canada).


Motor Fuel Tax Act

41 Sections 38 (1), 39 (1) and 40 (1) of the Motor Fuel Tax Act, R.S.B.C. 1996, c. 317, are amended by striking out "A" and substituting "Subject to the regulations, a".

42 Section 71 (2) is amended

(a) in paragraph (c) by adding "or different types of fuel" after "persons", and

(b) by adding the following paragraph:

(c.1) prescribing circumstances in which a person or class of persons must not pay or collect the security referred to in sections 38 to 40; .


Social Service Tax Act

43 Section 1 of the Social Service Tax Act, R.S.B.C. 1996, c. 431, is amended in the definition of "prototype" by adding "software or" after "does not include".

44 Section 6 is amended

(a) in subsection (1) by striking out "Subject to subsections (2) and (3)" and substituting "Subject to subsections (2), (3) and (5)", and

(b) by adding the following subsection:

(5) Despite any other provision of this Division, the rate of the tax payable under sections 5 (1) and 11 (3) on propane that is taxable under this Act is the rate established under the Motor Fuel Tax Act in respect of propane that is subject to tax under that Act.

45 Section 9 (3) is amended

(a) in paragraph (a) by striking out "section 76 (1) (d)," and substituting "section 76 (1) (d) or (d.1),", and

(b) in paragraph (b) by adding "or (d.1)" after "section 76 (1) (d)".

46 The following section is added:

Conversion to litres of propane

17.1 For the purpose of determining the amount of tax that, in relation to propane, is payable under sections 5 (1), 6 (5) and 11 (3), the commissioner may establish formulas for converting measures of propane other than in litres into litres of propane.

47 Section 76 (1) is amended by adding the following paragraphs:

(d.1) a prototype or, if made for a prescribed purpose, a copy of a prototype if the prototype or copy is a result of research and development activities aimed at developing a new or improved product or a new or improved process;

(i.1) used boom gear as defined in the regulations under circumstances prescribed by the regulations; .

48 Section 92 (1.1) is repealed and the following substituted:

(1.1) A person who is required to levy and collect tax under section 93 (1.1) must

(a) obtain, on application in the form required by the commissioner, a registration certificate issued under the authority of this Act, and

(b) hold, and maintain in force, the registration certificate at the time the person causes tangible personal property to be delivered into British Columbia.

49 Section 94 is amended by adding the following subsection:

(1.1) Despite subsection (1), sections 83 and 85 of the Financial Administration Act do not apply to a person who is required to collect tax under section 93 (1.1).

50 Section 95 (1) is amended by adding ", and to persons who are required to collect tax under section 93 (1.1)," after "vendors and lessors".

51 Section 96 (6) is repealed and the following substituted:

(6) Amounts to be collected under this Act, when collected, must be remitted to the commissioner at the prescribed times and in the prescribed manner.

(7) If a person collects an amount as if it were a tax imposed under this Act, the person must remit to the commissioner the amount collected at the same time and in the same manner as a tax collected under this Act.

52 Sections 97 and 98 are repealed and the following substituted:

Duty to make returns of tax collections

97 Every vendor and lessor, and every person who is required to collect tax under section 93 (1.1), must

(a) make returns to the commissioner, and

(b) keep records in the form and substance prescribed by the regulations made by the Lieutenant Governor in Council.

Duty to maintain records

98 (1) Every manufacturer, wholesaler, importer, jobber, agent, vendor and lessor must keep a record of all purchases, sales and leases by them of tangible personal property, whether for consumption, use, resale or lease.

(2) Every person who is required to collect tax under section 93 (1.1) must keep a record of all sales and leases by them of tangible personal property for which there is a collection obligation under this Act.

53 Section 108 (1) is amended by striking out "section 93 (1) or (1.1)." and substituting "section 93 (1)."

54 Section 116 (3) (a), (b) and (c) is amended by striking out "the vendor or lessor," and substituting "a person referred to in subsection (1) (a),".

55 Section 138 (1) is amended

(a) in paragraph (d) by adding ", and to persons who are required to collect tax under section 93 (1.1)," after "vendors and lessors", and

(b) by adding the following paragraphs:

(e.1) prescribing, for the purposes of section 12 (3) (a), the number of days during which tangible personal property may be within British Columbia without attracting tax under section 12, including different numbers of days for different classes of tangible personal property;

(g.1) prescribing the circumstances under which used boom gear is exempt from taxes imposed by sections 5 to 25 and 112.3; .


Special Accounts Appropriation and Control Act

56 Section 4 of the Special Accounts Appropriation and Control Act, R.S.B.C. 1996, c. 436, is amended by renumbering the section as section 4 (1) and by adding the following subsection:

(2) The balance in the First Citizens Fund special account is increased by $2 million effective on April 1, 2001.


Taxation (Rural Area) Act

57 The Taxation (Rural Area) Act, R.S.B.C. 1996, c. 448, is amended by adding the following section:

Options for tax due dates

10.1 Taxes are due and payable as follows:

(a) in accordance with the general tax collection scheme under sections 11 and 12, if the Lieutenant Governor in Council does not establish an alternative tax collection scheme under section 12.1;

(b) if the Lieutenant Governor in Council does establish a scheme under section 12.1, either

(i) in accordance with the general tax collection scheme, or

(ii) in accordance with the alternative tax collection scheme,

as elected by the owner under section 12.2.

58 Section 11 (1) is amended by striking out "Taxes levied in a taxation notice" and substituting "If this section applies, taxes levied in a taxation notice".

59 Section 12 (1) is amended by striking out "Taxes levied in a supplementary taxation notice" and substituting "If this section applies, taxes levied in a supplementary taxation notice".

60 The following sections are added:

Alternative tax collection schemes

12.1 (1) The Lieutenant Governor in Council may, by regulation, establish one or more alternative tax collection schemes in accordance with this section.

(2) A regulation under subsection (1) must establish for each alternative tax collection scheme one or more dates on which taxes are due and payable.

(3) A regulation under subsection (1) may do one or more of the following:

(a) establish an annual time period during which owners may make elections and changes in elections under section 12.2;

(b) establish procedures for determining the amount of taxes due on each of the due dates;

(c) provide for

(i) estimating the amount of taxes payable in the year, and

(ii) making adjustments to payments due in order to take into account variations between the estimated and actual taxes payable;

(d) establish terms, conditions, procedures and eligibility criteria to be met or followed for making an election or change in election under section 12.2;

(e) establish a fee payable for an election or a change in election made after a time period established under paragraph (a);

(f) establish penalties and interest to be applied in relation to payments made after a tax due date established by the regulations;

(g) provide for exemptions from penalties and interest established under paragraph (f);

(h) set terms, conditions and procedures in relation to payments;

(i) provide that an alternative tax collection scheme does not apply, or ceases to apply, under prescribed circumstances.

(4) As a limitation on subsection (3) (b), there must not be more than 12 months between the first and last due dates for annual taxes for any year.

(5) Section 11 (3) and the regulations under that provision apply to an alternative tax collection scheme established under this section.

(6) The Lieutenant Governor in Council may make different regulations under subsections (1) and (3) for

(a) different classes of owners as established by the regulations,

(b) different classes of property prescribed by the Lieutenant Governor in Council under section 19 (14) of the Assessment Act, and

(c) different geographical areas of British Columbia as established by the regulations.

Owner may elect which scheme to use

12.2 (1) If an alternative tax collection scheme is established under section 12.1, an owner who is eligible to make an election under the regulations under that section may elect to pay, under that scheme and in accordance with the regulations under section 12.1, taxes payable by giving notice of this election to the Surveyor of Taxes.

(2) An owner may elect to pay under the general tax collection scheme under sections 11 and 12

(a) by not giving notice under subsection (1) of this section, in which case the owner is deemed to have elected to pay under the general tax collection scheme, or

(b) in the case of an owner who has given notice under subsection (1), by giving notice of the change in election to the Surveyor of Taxes.

(3) If the land title registration of a property indicates that there is more than one registered owner of the property, a person giving notice under subsection (1) or (2) may only do so with the written consent of each registered owner.

(4) Once an election has been made under this section, the owner is liable to make payments in accordance with the chosen scheme until the owner has made another election under this section.

(5) A notice of election or change in election under this section

(a) must be in the prescribed form, and

(b) may be given to the Surveyor of Taxes by electronic means or other format if that means or format is acceptable to the Surveyor of Taxes.

61 The following section is added:

Lien for taxes respecting Crown land

30.1 (1) If

(a) the property for which taxes are assessed or imposed is Crown land held by an occupier, and

(b) the taxes on the property are delinquent,

the collector may register in the personal property registry under the Miscellaneous Registrations Act, 1992 a claim respecting the personal property of the occupier.

(2) A claim registered under subsection (1) creates a lien and charge in favour of the government against the personal property of the occupier for the amount of the delinquent taxes and any current year taxes that are due and payable.

(3) A lien or charge created under subsection (2) has priority over all other claims of every person except claims secured by liens, charges or encumbrances registered before the date that the claim is registered under subsection (1).

(4) A lien or charge under subsection (2) and its priority are not lost or impaired by

(a) any neglect, omission or error of the collector or of an agent or officer,

(b) taking or failing to take proceedings to recover the taxes due, or

(c) tender or acceptance of partial payment of the taxes.

62 Sections 31 and 32 are repealed and the following substituted:

Effect of sale of real or personal property subject to lien

31 (1) A sale or transfer of possession of any property or personal property that is subject to a lien or charge in favour of the government does not affect the right of distress or sale of that property or personal property for the recovery of the taxes under this Act.

(2) A person who acquires any property against which a lien under section 30 exists is jointly liable with the owner originally assessed for payment of the taxes.

Unpaid taxes constitute first charge

32 If property is sold, the amount of the tax lien under section 30 for unpaid taxes constitutes a first charge on the proceeds of sale.

63 Section 57 (2) is amended by adding the following paragraphs:

(i) establishing classes of owners and geographical areas for the purposes of section 12.1 (6);

(j) prescribing the form and content of a notice of election or change in election under section 12.2.


Tobacco Tax Act

64 Section 1 of the Tobacco Tax Act, R.S.B.C. 1996, c. 452, is amended

(a) by renumbering the section as section 1 (1),

(b) in the definition of "consumer" by striking out "means a person who" and substituting "means, subject to subsection (2), a person who",

(c) by repealing the definition of "dealer" and substituting the following:

"dealer" means a person who, either at wholesale or at retail,

(a) sells or offers to sell, in British Columbia, tobacco, or

(b) keeps for sale, in British Columbia, tobacco; , and

(d) by adding the following subsection:

(2) Despite the definition of "consumer" in subsection (1), the term "consumer" as used

(a) in the definition of "tobacco" in subsection (1), and

(b) in sections 22 (2), 27 (3), 39 (4) (d), 43 (2) (b) and 46,

includes a "consumer" as defined in section 3 (1).

65 Section 2 is amended

(a) in subsection (7) by adding "who is authorized under this Act to sell tobacco at retail" after "A retail dealer", and

(b) by adding the following subsection:

(7.1) If a person who is not authorized under this Act to sell tobacco at retail sells tobacco to a consumer and receives money in respect of the tax payable on the tobacco, that person must immediately remit that money to the minister.

66 Section 22 is amended by adding the following subsection:

(2.01) If a consumer purchases tobacco from a retail dealer who is not authorized under this Act to sell tobacco at retail and the tax payable in respect of that tobacco is not remitted to the director, the director may assess either

(a) the consumer for the amount of tax payable in respect of that tobacco, or

(b) the retail dealer for the amount of tax collected in respect of that tobacco,

but not both the consumer and the retail dealer.

67 Section 27 is amended by adding the following subsection:

(4) Despite section 2 (7.1) and (11),

(a) a person is not authorized as agent for the minister to collect from a consumer money paid as or on account of tax unless that person is authorized under this Act to sell tobacco at retail, and

(b) a consumer who has purchased tobacco from a person referred to in paragraph (a) must immediately report the purchase in writing to the minister and remit to the minister the tax imposed by this Act in respect of that purchase.


Transitional and Commencement

Transitional -- regulation making power -- Hotel Room Tax Act

68 Regulations that may be made under the Hotel Room Tax Act as a result of this Act may, if made before January 1, 2002, be made retroactive to March 16, 1995 and a regulation made retroactive is deemed to have come into force on the date specified in the regulation.

Transitional -- regulation making power --  Income Tax Act

69 (1) Regulations that may be made under the Income Tax Act as a result of section 33 (b) of this Act may, if made before January 1, 2002, be made retroactive to April 1, 1998 and a regulation made retroactive is deemed to have come into force on the date specified in the regulation.

(2) Regulations that may be made under the Income Tax Act as a result of sections 33 (d) and 34 of this Act may, if made before January 1, 2002, be made retroactive to March 16, 2001 and a regulation made retroactive is deemed to have come into force on the date specified in the regulation.

Transitional --  Income Tax Act

70 (1) In this section:

"taxpayer" has the same meaning as in the Income Tax Act;

"eligible production" has the same meaning as in section 79 of the Income Tax Act.

(2) A taxpayer must, in respect of an eligible production,

(a) if the principal photography of the production begins on or before March 31, 2001, determine the taxpayer's entitlement to, and calculate the amount of, any credit under Part 5 of the Income Tax Act in accordance with that Part as it read immediately before the coming into force of sections 33 (d) and 34 of this Act, and

(b) if the principal photography of the production begins after March 31, 2001, determine the taxpayer's entitlement to, and calculate the amount of, any credit under Part 5 of the Income Tax Act in accordance with that Part as it reads on the coming into force of sections 33 (d) and 34 of this Act.

Transitional provisions relating to common-law partners -- Income Tax Act

71 (1) If sections 130 to 142 of the Modernization of Benefits and Obligations Act (Canada) apply in respect of the 2000 taxation year to a taxpayer and a person who would have been the taxpayer's common-law partner in that year had those sections of that Act applied in that year, the amendments made by sections 15 and 16 of this Act to the Income Tax Act apply to the taxpayer and that person in respect of the 2000 and subsequent taxation years.

(2) If sections 130 to 142 of the Modernization of Benefits and Obligations Act (Canada) apply in respect of the 1998 or 1999 taxation year to a taxpayer and a person who would have been the taxpayer's common-law partner in the applicable year had those sections of that Act applied in that year, the amendments made by sections 15 and 16 of this Act to the Income Tax Act apply to the taxpayer and that person in respect of the applicable taxation year.

(3) Section 146 of the Modernization of Benefits and Obligations Act (Canada) applies for the purposes of this section.

Transitional -- regulation making power -- Logging Tax Act

72 Regulations that may be made under the Logging Tax Act as a result of this Act may, if made before January 1, 2002, be made retroactive to April 1, 2001 and a regulation made retroactive is deemed to have come into force on the date specified in the regulation.

Transitional -- Logging Tax Act

73 (1) In this section, "taxpayer" and "taxation year" have the same meanings as in the Logging Tax Act.

(2) A taxpayer must calculate the amount of tax payable by that taxpayer under the Logging Tax Act in respect of a taxation year as follows:

(a) if the taxation year begins on or before March 31, 2001, the amount of tax payable must be calculated in accordance with section 2 of the Logging Tax Act as that section read immediately before the coming into force of section 38 of this Act;

(b) if the taxation year begins after March 31, 2001, the amount of tax payable must be calculated in accordance with section 2 of the Logging Tax Act as that section reads on the coming into force of section 38 of this Act.

Transitional -- regulation making power -- Motor Fuel Tax Act and Social Service Tax Act

74 Regulations that may be made under the Motor Fuel Tax Act and Social Service Tax Act as a result of this Act may, if made before January 1, 2002, be made retroactive to March 16, 2001 and a regulation made retroactive is deemed to have come into force on the date specified in the regulation.

Commencement

75 (1) Section 1 is deemed to have come into force on January 1, 1995 and is retroactive to the extent necessary to give it effect for the purposes of taxation years of corporations, within the meaning of the Corporation Capital Tax Act, ending on and after that date.

(2) Section 2 is deemed to have come into force on February 23, 1994 and is retroactive to the extent necessary to give it effect for the purposes of taxation years of corporations, within the meaning of the Corporation Capital Tax Act, ending on and after that date.

(3) Sections 3, 4, 11 (b) and (c), 14 (a), 18 to 21, 27, 28, 33 (d), 34, 35, 41, 42, 43 to 55, 64 to 67, 69 (2), 70 and 74 are deemed to have come into force on March 16, 2001 and are retroactive to the extent necessary to give them effect on and after that date.

(4) Section 5, 7 to 9, 57 to 60 and 63 come into force by regulation of the Lieutenant Governor in Council.

(5) When sections 5 is brought into force by regulation, it

(a) is deemed to have come into force on the later of

(i) June 6, 2000, and

(ii) any later date specified in the regulation, and

(b) is retroactive to the extent necessary to give it effect on and after that date.

(6) Sections 10 and 68 are deemed to have come into force on March 16, 1995 and are retroactive to the extent necessary to give them effect on and after that date.

(7) Sections 11 (a) and 23 (a) and (b) are deemed to have come into force on January 1, 1994 and are retroactive to the extent necessary to give them effect for taxation years ending on and after that date.

(8) Sections 12 and 13 are deemed to have come into force on January 1, 2001 and are retroactive to the extent necessary to give them effect on and after that date.

(9) Section 14 (b) is deemed to have come into force on January 1, 2000 and is retroactive to the extent necessary to give it effect on and after that date.

(10) Subject to section 71, sections 15 and 16 are deemed to have come into force on January 1, 2001 and are retroactive to the extent necessary to give them effect on and after that date.

(11) Section 23 (c) and (d) is deemed to have come into effect on February 23, 1994 and is retroactive to the extent necessary to give it effect for taxation years ending on and after that date.

(12) Section 25 is deemed to have come into effect on January 1, 2000 and is retroactive to the extent necessary to give it effect for the purposes of taxation years of corporations, within the meaning of the Income Tax Act, ending on and after that date.

(13) Sections 33 (b) and 69 (1) are deemed to have come into force on April 1, 1998 and are retroactive to the extent necessary to give them effect on and after that date.

(14) Sections 38 to 40, 72 and 73 are deemed to have come into force on April 1, 2001 and are retroactive to the extent necessary to give them effect on and after that date.


Explanatory Notes

Corporation Capital Tax Act

SECTION 1: [Corporation Capital Tax Act, amends section 8] clarifies that section 8 of the Corporation Capital Tax Act does not apply to a corporation if its only registration or licensing to trade in securities is registration or licensing as, or equivalent to, a security issuer within the meaning of the Securities Rules.

SECTION 2: [Corporation Capital Tax Act, repeals and replaces section 11 (2) (f) (i)] makes changes that are consequential to changes to section 25 of the Income Tax Act that are proposed in section 23 of this Bill.

SECTION 3: [Corporation Capital Tax Act, amends section 13 (1)] clarifies that a deduction is available under the Corporation Capital Tax Act for eligible expenditures in relation to eligible property acquired in a taxation year, even if that eligible property is not actually put into use in that taxation year.

SECTION 4: [Corporation Capital Tax Act, amends section 13 (1)] clarifies that a deduction is available under the Corporation Capital Tax Act for eligible expenditures in relation to eligible tourism property acquired in a taxation year, even if that eligible tourism property is not actually put into use in that taxation year.


Finance and Corporate Relations Statutes Amendment Act, 2000

SECTION 5: [Finance and Corporate Relations Statutes Amendment Act, 2000, amends section 4] harmonizes an outstanding Corporation Capital Tax Act amendment with the new structure for section 8 of that Act enacted by section 1 of this Bill.


Financial Administration Act

SECTION 6: [Financial Administration Act, amends section 56.1 (3) (b)] provides that the amount estimated to be amortized for a prepaid capital advance must be included in the estimates of revenue and expenditure for a fiscal year.


Home Owner Grant Act

SECTION 7: [Home Owner Grant Act, adds section 8 (1.1)] removes the requirement that persons who are entitled to a home owner grant under section 2 of the Home Owner Grant Act be in receipt of a tax notice before being able to apply for a home owner grant.

SECTION 8: [Home Owner Grant Act, repeals and replaces section 10 (2)] removes the requirement that a collector must mail the determination to the applicant at the address shown on the tax notice.

SECTION 9: [Home Owner Grant Act, enacts section 15.2] provides for alternative tax collection schemes under the Taxation (Rural Area) Act proposed by this Bill.


Hotel Room Tax Act

SECTION 10: [Hotel Room Tax Act, amends section 1]


Income Tax Act

SECTION 11: [Income Tax Act, amends section 1]

(a) repeals the definition of "mining reclamation trust" as a consequence of amendments to the Income Tax Act (Canada) and changes proposed in section 23 of this Bill;

(b) repeals a definition that no longer fits;

(c) ensures that the definitions in the Income Tax Act (Canada) and in the regulations made under that Act do not prevail over the definitions in British Columbia's Income Tax Act and regulations.

SECTION 12: [Income Tax Act, amends section 4.4] modifies the formula used to calculate the tax credit for charitable and other gifts to ensure that the amount claimed in another province or in a territory cannot be claimed again in British Columbia.

SECTION 13: [Income Tax Act, amends section 4.5] clarifies that in calculating the tax credit for medical expenses the same period must be used under British Columbia's Income Tax Act as is used under the federal Act.

SECTION 14: [Income Tax Act, amends section 4.84]

(a) repeals a provision that has become redundant with the passage of the applicable federal legislation;

(b) corrects references to sections of the Income Tax Act (Canada).

SECTION 15: [Income Tax Act, amends section 9 (1)] removes a redundant reference to a common-law partner. The defined term should be "cohabiting spouse", and the term includes a common-law spouse.

SECTION 16: [Income Tax Act, amends sections 10 (1) (b) and 11 (2) and (3)] removes redundant references to a common-law partner.

SECTION 17: [Income Tax Act, adds section 13.1 (5)] adds a provision authorizing the Minister of Finance and Corporate Relations and the minister responsible for the Employee Investment Act to collect and share information relevant to the administration of the employee investment tax credit.

SECTION 18: [Income Tax Act, amends section 14] updates a section reference.

SECTION 19: [Income Tax Act, amends section 16] updates a section reference.

SECTION 20: [Income Tax Act, amends section 17 (9)] updates a section reference.

SECTION 21: [Income Tax Act, repeals section 18.1 (g)] removes a refundable tax credit from a provision setting out the order in which deductions are to be applied when calculating a corporation's tax.

SECTION 22: [Income Tax Act, adds section 21 (15)] adds a provision authorizing the Minister of Finance and Corporate Relations and the minister responsible for the Small Business Venture Capital Act to collect and share information relevant to the administration of the small business venture capital tax credit.

SECTION 23: [Income Tax Act, amends section 25] makes changes to a tax credit relating to mining land reclamation that are consequential to changes to a similar tax credit available under the Income Tax Act (Canada).

SECTION 24: [Income Tax Act, amends section 25.1 (1)] makes changes to a tax credit relating to mining exploration that are consequential to changes to a similar tax credit available under the Income Tax Act (Canada).

SECTION 25: [Income Tax Act, amends section 34] incorporates a reference to section 161.1 of the Income Tax Act (Canada). As a consequence, corporations will be able to elect to have refund interest offset against arrears interest.

SECTION 26: [Income Tax Act, amends section 38] applies the penalty provisions of the Income Tax Act (Canada) for making misleading statements and omissions to similar cases arising under British Columbia's Income Tax Act.

SECTION 27: [Income Tax Act, amends section 40] permits prepayment of income tax refunds for film and television and scientific research and experimental development tax credits.

SECTION 28: [Income Tax Act, amends section 59] updates a section reference.

SECTION 29: [Income Tax Act, re-enacts section 64] revises the disclosure of taxpayer information provisions to harmonize them with provisions in the Income Tax Act (Canada).

SECTION 30: [Income Tax Act, repeals and replaces section 65 (1) to (3) and adds subsection (3.1)] as a consequence of the amendments proposed in sections 17, 22, 29 and 32 of this Bill redefines "information-sharing agreement" and clarifies the rules restricting the use and disclosure of taxpayer information obtained under information-sharing agreements.

SECTION 31: [Income Tax Act, amends section 77] as a consequence of the amendment proposed in section 32 of this Bill, removes a reference to the Ministry of Forests.

SECTION 32: [Income Tax Act, enacts section 77.1] adds a provision authorizing the Minister of Finance and Corporate Relations and the minister responsible for the Forest Act to collect and share timber harvest information relevant to the administration and enforcement of the British Columbia Income Tax Act.

SECTION 33: [Income Tax Act, amends section 79 (1)]

SECTION 34: [Income Tax Act, amends section 80]

SECTION 35: [Income Tax Act, amends section 93] updates a section reference.

SECTION 36: [Income Tax Act, amends section 97] makes changes to a definition relating to the scientific research and experimental tax credit that are consequential to changes to a similar tax credit available under the Income Tax Act (Canada).

SECTION 37: [Income Tax Act, amends section 104 (1)] makes changes to a definition relating to the manufacturing and processing tax credit that are consequential to changes to a similar tax credit available under the Income Tax Act (Canada).


Logging Tax Act

SECTION 38: [Logging Tax Act, amends section 2 (b)] clarifies that the allowable credit referred to in section 2 (b) of the Logging Tax Act means the logging tax deduction that could be claimed under the Income Tax Act (Canada) if no credits were allowed under section 127 (3) or (5) of that Act.

SECTION 39: [Logging Tax Act, amends section 14] allows the Minister of Finance and Corporate Relations and the Minister of Forests to collect and share information relevant to the administration and enforcement of the Logging Tax Act.

SECTION 40: [Logging Tax Act, enacts section 14.1] allows the Minister of Finance and Corporate Relations to enter into information-sharing agreements or arrangements relevant to the administration and enforcement of the Logging Tax Act with other governments and government bodies.


Motor Fuel Tax Act

SECTION 41: [Motor Fuel Tax Act, amends sections 38 (1), 39 (1) and 40 (1)] makes the sections subject to the regulations.

SECTION 42: [Motor Fuel Tax Act, amends section 71 (2)] authorizes regulations governing the method of remitting tax on propane taxed under the Motor Fuel Tax Act.


Social Service Tax Act

SECTION 43: [Social Service Tax Act, amends section 1] expressly excludes software from the definition of prototype.

SECTION 44: [Social Service Tax Act, amends section 6] provides that the rate of tax payable in respect of propane is the same as the rate established for propane under the Motor Fuel Tax Act.

SECTION 45: [Social Service Tax Act, amends section 9 (3)] requires persons who acquire tangible personal property exempt from tax on the basis that the tangible personal property will be used in or as a prototype to pay tax on that tangible personal property if that use changes.

SECTION 46: [Social Service Tax Act, enacts section 17.1] authorizes the commissioner to establish a conversion rate in circumstances where sellers are required to sell propane by a measure other than litres.

SECTION 47: [Social Service Tax Act, adds section 76 (1) (d.1) and (i.1)] exempts prototypes and used boom gear from tax under the Social Service Tax Act.

SECTION 48: [Social Service Tax Act, repeals and replaces section 92 (1.1)] requires that a person to whom section 93 (1.1) of the Social Service Tax Act applies must obtain and hold a valid registration certificate when tangible personal property is delivered into British Columbia.

SECTION 49: [Social Service Tax Act, adds section 94 (1.1)] exempts a person to whom section 93 (1.1) of the Social Service Tax Act applies from the application of provisions of the Financial Administration Act respecting third party demands and government ownership of books and records.

SECTION 50: [Social Service Tax Act, amends section 95 (1)] makes section 95 (1) of the Social Service Tax Act applicable to a person to whom section 93 (1.1) of that Act applies.

SECTION 51: [Social Service Tax Act, amends section 96] empowers the Lieutenant Governor in Council to establish by regulation the time and manner of remitting tax collected, and provides that the same rules for remittance apply to other amounts collected as if those amounts were a tax.

SECTION 52: [Social Service Tax Act, re-enacts sections 97 and 98]

SECTION 53: [Social Service Tax Act, amends 108 (1)] corrects a cross-reference error.

SECTION 54: [Social Service Tax Act, amends section 116 (3)] makes section 116 (3) of the Social Service Tax Act applicable to all persons to whom section 116 (1) (a) of that Act applies.

SECTION 55: [Social Service Tax Act, amends section 138 (1) (d)]


Special Accounts Appropriation and Control Act

SECTION 56: [Special Accounts Appropriation and Control Act, amends section 4] increases the First Citizens Fund special account by $2 million.


Taxation (Rural Area) Act

SECTION 57: [Taxation (Rural Area) Act, enacts section 10.1] provides for alternative tax collection schemes under the Taxation (Rural Area) Act.

SECTIONS
58 and 59: [Taxation (Rural Area) Act, amend sections 11 and 12] indicate the limited applicability of sections 11 and 12 of the Taxation (Rural Area) Act to the general tax collection scheme.

SECTION 60: [Taxation (Rural Area) Act, enacts sections 12.1 and 12.2]

SECTION 61: [Taxation (Rural Area) Act, enacts section 30.1] authorizes registration of a lien against the personal property of an occupier of Crown land for delinquent taxes under the Taxation (Rural Area) Act.

SECTION 62: [Taxation (Rural Area) Act, re-enacts sections 31 and 32]

SECTION 63: [Taxation (Rural Area) Act, amends section 57 (2)] authorizes regulations for purposes of the proposed alternative tax collection schemes.


Tobacco Tax Act

SECTION 64: [Tobacco Tax Act, amends section 1] clarifies the meaning of dealer, and modifies the definition of "consumer" for the purposes of certain provisions of the Tobacco Tax Act.

SECTION 65: [Tobacco Tax Act, amends section 2]

(a) clarifies that section 2 (7) of the Tobacco Tax Act only applies to a retail dealer who is authorized to sell tobacco, and

(b) requires that a person who sells tobacco at retail without an authorization collect the tax due on the tobacco and remit the tax directly to the minister.

SECTION 66: [Tobacco Tax Act, adds section 22 (2.01)] establishes that either the consumer or the unauthorized dealer may be assessed the tax owing on tobacco, but not both.

SECTION 67: [Tobacco Tax Act, amends section 27] establishes that a consumer who purchases tobacco from an unauthorized dealer remains liable for the tax due on that tobacco.


Transitional and Commencement

SECTION 68: [Transitional - regulation making power -- Hotel Room Tax Act] allows regulations to be made retroactive to March 16, 1995.

SECTION 69: [Transitional -- regulation making power -- Income Tax Act] allows regulations respecting assistance to be made retroactive to April 1, 1998, and other regulations to be made retroactive to March 16, 2001.

SECTION 70: [Transitional -- Income Tax Act] applies the amendments enacted by section 33 (d) and 34 of this Bill to productions the principal photography of which begins after March 31, 2001.

SECTION 71: [Transitional provisions relating to common-law partners -- Income Tax Act] provides for the amendments to sections 9 (1), 10 (1) (f), 11 (2), (3) and (4) (a) of the Income Tax Act to apply in situations where an individual and the individual's common-law partner elect to be treated as common-law partners for the taxation year.

SECTION 72: [Transitional - regulation making power -- Logging Tax Act] ensures that any regulations made in relation to the amendment to the Logging Tax Act enacted under this Bill may be made retroactive to March 31, 2001.

SECTION 73: [Transitional -- Logging Tax Act] ensures that the amendments to the Logging Tax Act under section 38 of this Bill apply only to taxation years that begin after March 31, 2001.

SECTION 74: [Transitional -- regulation making power -- Motor Fuel Tax Act and Social Service Tax Act] allows regulations to be made retroactive to March 16, 2001.


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