2001 Legislative Session: 2nd Session, 37th Parliament
The following electronic version is for informational
The printed version remains the official version.
Certified correct as passed Third Reading on the 9th day of August, 2001
Ian D. Izard, Law Clerk
HONOURABLE GARY COLLINS
MINISTER OF FINANCE
HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:
1 Section 1 (1) of the Corporation Capital Tax Act, R.S.B.C. 1996, c. 73, is amended
(a) by repealing the definition of "aggregate paid up capital" and substituting the following:
"aggregate paid up capital" means
(a) subject to paragraph (b), aggregate paid up capital within the meaning of section 7, and
(b) in relation to an authorized foreign bank, aggregate paid up capital within the meaning of section 7.1; ,
(b) by repealing the definitions of "apartment corporation", "applicable taxation year", "capital lease", "cooperative corporation", "family farm corporation", "farming", "livestock", "loans and advances to corporations", "net B.C. paid up capital", "net paid up capital employed in Canada", "nonresident", "poultry", and "resident in Canada", and
(c) by repealing the definition of "B.C. paid up capital" and substituting the following:
"B.C. paid up capital" means the result obtained by subtracting the deduction, if any, made by a corporation under section 12 from the corporation's net paid up capital; .
2 Section 1 (2) is repealed.
3 Sections 1 (5), 3 (2), 3.1, 3.2, 16 (1) and (3), 17 (1) and (3) (a) and 21 (b) are amended by striking out "net B.C. paid up capital" wherever it occurs and substituting "B.C. paid up capital".
4 The following section is added:
1.1 Despite the Corporation Capital Tax Amendment Act, 2001, this Act, as it is on August 31, 2003, continues to apply to a taxation year of a corporation that is not a bank, trust company or credit union that commenced before September 1, 2002.
5 Section 2 is amended
(a) by repealing subsection (7) and substituting the following:
(7) A corporation that otherwise has a permanent establishment in Canada is deemed to have a permanent establishment on land it owns, or has a right or interest in, in Canada. , and
(b) by repealing subsection (8).
6 Section 3 (3), (3.1) and (5) is repealed.
7 Sections 3.3 to 3.5 are repealed.
8 Section 4 (3) is repealed and the following substituted:
(3) The following corporations are exempt from the tax under this Act:
(a) the British Columbia Central Credit Union;
(b) a corporation that carries on the business of an insurer and is designated by regulation;
(c) a bankrupt corporation from the date of its bankruptcy for so long as it remains a bankrupt.
9 Section 5 (5) is amended by striking out "section 12 (1)" and substituting "section 12".
10 Sections 8 and 9 are repealed.
11 Section 10 is repealed and the following substituted:
10 There may be deducted from the aggregate paid up capital of a corporation at the end of its taxation year,
(a) the corporation's negative retained earnings, if any, and
(b) if the corporation has an interest in one or more partnerships that are solely engaged in exploration for a mineral resource, petroleum or natural gas, the aggregate of amounts, each of which is the corporation's proportionate share of the amount, if any, by which
(i) the exploration costs incurred by each of the partnerships that are included in the cost of capital assets disclosed on the balance sheet of that partnership for the taxation year referred to in section 16 (3) (a) or (b) that is applicable,
(ii) the aggregate of the amounts of amortization, depreciation and other charges that are related to those exploration costs and are taken into account in computing the income or loss of the partnership for the taxation year referred to in subparagraph (i) or any preceding taxation year in accordance with generally accepted accounting principles.
12 Section 11 is amended
(a) by repealing subsections (2) and (4),
(b) by repealing subsection (3) and substituting the following:
(3) If a credit union owns shares of another savings institution that has a permanent establishment in British Columbia, other than one of the following savings institutions, there may be deducted from the total paid up capital of the credit union an investment allowance equal to the proportion of the total paid up capital that the carrying value of those shares in the other savings institution bears to the total assets of the credit union:
(a) the Insurance Corporation of British Columbia;
(b) an insurance company as defined in the Financial Institutions Act;
(c) an extraprovincial insurance corporation as defined in the Financial Institutions Act;
(d) a corporation, other than one described in paragraphs (a) to (c), that carries on the business of an insurer and is designated by regulation;
(e) the British Columbia Central Credit Union. , and
(c) in subsection (5) by striking out "(2) or".
13 Section 12 is repealed and the following substituted:
12 At the end of a taxation year of a corporation, there may be deducted from the net paid up capital of the corporation, that portion of the net paid up capital that is allocated to jurisdictions outside British Columbia in accordance with prescribed rules.
14 Sections 13 and 14 are repealed.
15 Section 16 (1) (a) is repealed.
Hydro and Power Authority Act
16 Section 32 (7) (d) of the Hydro and Power Authority Act, R.S.B.C. 1996, c. 212, is repealed.
17 This Act comes into force on September 1, 2003.
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