Bill 13 – 2015: Finance Statutes Amendment Act, 2015

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

SECTION 1: [Carbon Tax Act, section 1]

amends the definition of "tax" to provide that, except in section 45 of the Act, tax includes

amounts owing by a person who purchases fuel or an interest in a business through a bulk transaction without obtaining a copy of the certificate provided by the director that states that all amounts owing under the Act by the seller in respect of the seller's business have been paid, and
amounts owing by a person who, contrary to section 65 of the Act, distributes the proceeds from the realization of property without obtaining from the director a certificate that states that the amount that constituted a lien under section 64 of the Act has been paid;

repeals a provision, consequential to the amendment to the definition of "tax".

(a) in subsection (1) by repealing the definition of "tax" and substituting the following:

"tax", in relation to tax under this Act, includes all penalties and interest that are or may be added to that tax, and, except in section 45, includes

(b) an amount for which a person is personally liable to the government under section 65 (4); , and

SECTION 2: [Carbon Tax Act, section 1.2] provides that if more than one person is subject to the same tax, or is required to pay the same security to the government, each person is jointly and severally liable for the tax or for payment of the security.

Liability of other persons

1.2 (1) If more than one person is subject to tax under the same provision of this Act in respect of the same fuel, each person is jointly and severally liable for the tax.

(2) If more than one person is required under the same provision of this Act to pay security to the government in respect of the same fuel, each person is jointly and severally liable to pay the security.

SECTION 3: [Carbon Tax Act, section 10] specifies circumstances in which a person is deemed to be carrying on business in British Columbia for the purposes of the imposition of tax under the section.

(3) For the purposes of subsection (1), a person is deemed to be carrying on business in British Columbia if

(a) the person's name, or any name under which the person carries on business, is listed in a telephone directory

(ii) in which an address or telephone number in British Columbia is given for the person,

(b) the person's name, or any name under which the person carries on business, appears or is announced in any advertisement in which an address or telephone number in British Columbia is given for the person,

(d) the person routinely loads or unloads passengers, cargo or both in British Columbia.

SECTION 4: [Carbon Tax Act, section 16] provides that before the director appoints an applicant under the section, the director may require the applicant to provide, by a specified date, a bond under section 59 of the Act, and that the director may refuse to make the appointment if the bond is not provided by that date.

(2.11) Before the director makes an appointment under subsection (1) or (2.1), the director may require the applicant to deposit a bond under section 59 by the date specified by the director.

(2.12) The director may refuse to make an appointment under subsection (1) or (2.1) if the applicant has failed to deposit a bond required under section 59 by the date specified by the director under subsection (2.11) of this section.

SECTION 5: [Carbon Tax Act, section 19] provides that before the director issues a registration certificate to an applicant, the director may require the applicant to provide, by a specified date, a bond under section 59 of the Act, and that the director may refuse to issue the certificate if the bond is not provided by that date.

(7) Before the director issues a registration certificate under subsection (1), the director may require the applicant to deposit a bond under section 59 by the date specified by the director.

(8) The director may refuse to issue a registration certificate under subsection (1) if the applicant has failed to deposit a bond required under section 59 by the date specified by the director under subsection (7) of this section.

SECTION 6: [Carbon Tax Act, section 20] provides that before the director issues a registered consumer certificate to an applicant, the director may require the applicant to provide, by a specified date, a bond under section 59 of the Act, and that the director may refuse to issue the certificate if the bond is not provided by that date.

(7) Before the director issues a registered consumer certificate under subsection (1), the director may require the applicant to deposit a bond under section 59 by the date specified by the director.

(8) The director may refuse to issue a registered consumer certificate under subsection (1) if the applicant has failed to deposit a bond required under section 59 by the date specified by the director under subsection (7) of this section.

SECTION 7: [Carbon Tax Act, section 21] provides that before the director issues a registered air service certificate or registered marine service certificate to an applicant, the director may require the applicant to provide, by a specified date, a bond under section 59 of the Act, and that the director may refuse to issue the certificate if the bond is not provided by that date.

(3) Before the director issues a registered air service certificate or registered marine service certificate under subsection (1), the director may require the applicant to deposit a bond under section 59 by the date specified by the director.

(4) The director may refuse to issue a registered air service certificate or registered marine service certificate under subsection (1) if the applicant has failed to deposit a bond required under section 59 by the date specified by the director under subsection (3) of this section.

SECTION 8: [Carbon Tax Act, section 38]

provides that a seller who is a collector, deputy collector or retail dealer may not make a deduction or claim a refund under the section in respect of a sale of fuel for which the full amount of the consideration was not paid unless the seller writes off the unpaid amount as unrealizable or uncollectable within 4 years of the date on which the seller remitted or paid tax or security in respect of the fuel;
provides that a collector, deputy collector or retail dealer who has made a deduction or claimed a refund under the section in respect of a sale of fuel and who recovers unpaid consideration for the sale must pay to the government an amount determined in the prescribed manner on or before the last day of the month following the month in which the recovery is made;
makes the section consistent with similar provisions of other taxation Acts.

Refund or deduction for bad debts

"specified amount", in relation to a sale, means a portion, determined in the prescribed manner, of the amount remitted or paid to the government by the seller in respect of taxes or security payable under this Act on the sale.

(ii) pays or has paid the security required under this Act to be paid in respect of the fuel,

(c) the person buying the fuel does not pay to the seller the full amount of the consideration in respect of the sale, and

(d) within 4 years of the date on which the tax or security referred to in paragraph (b) (i) or (ii), as the case may be, was remitted or paid, the seller writes off as unrealizable or uncollectable the amount owing by the person who bought the fuel.

(3) If a seller to whom this section applies in respect of a sale is a collector or a retail dealer of natural gas, the seller may deduct the specified amount from the amount of taxes or security that the seller is required to remit or pay under this Act in respect of the reporting period in which the seller writes off the amount owing referred to in subsection (2) (d).

(4) A deduction referred to in subsection (3) must be made in a form specified by the director.

(b) if the seller is a collector or a retail dealer of natural gas, the seller has not made a deduction under subsection (3) in respect of the sale,

the director must refund from the consolidated revenue fund the specified amount to the seller.

(6) If a seller who is a collector or a retail dealer of natural gas has made a deduction under subsection (3) or obtained a refund under subsection (5) and recovers some or all of the amount referred to in subsection (2) (d) with respect to which the refund was paid or the deduction was made, the seller must add an amount, determined in the prescribed manner, to the tax to be remitted or security to be paid by the seller under this Act in respect of the reporting period in which the recovery was made.

(7) If a seller, other than a seller referred to in subsection (6), who obtained a refund under subsection (5) recovers some or all of the amount referred to in subsection (2) (d) with respect to which the refund was paid, the seller must pay to the government an amount, determined in the prescribed manner, on or before the last day of the month following the month in which the recovery was made.

SECTION 9: [Carbon Tax Act, section 42] provides that a refund under section 38 (5) of the Act in respect of a sale of fuel must not be paid to a person more than 4 years after the date on which the person writes off as unrealizable or uncollectable the amount owing in respect of the sale.

(a) in subsection (1) by striking out "and" at the end of paragraph (a) and by repealing paragraph (b) and substituting the following:

(b) a refund, other than a refund referred to in paragraph (c), must not be made on a claim for a refund that is received by the director more than 4 years after the date on which the amount claimed was paid or remitted, and

(c) a refund to a person under section 38 (5) must not be made on a claim for a refund that is received by the director more than 4 years after the date on which the person who sold the fuel referred to in section 38 writes off as unrealizable or uncollectable the amount owing by the person who bought that fuel. , and

(b) in subsection (2) by striking out "was paid." and substituting "was paid or remitted."

SECTION 10: [Carbon Tax Act, section 45] requires the director to make an assessment against the following:

a person who deducted under section 38 (3) of the Act an amount in excess of the amount the person was entitled to deduct under that section;
a person who purchases fuel or an interest in a business through a bulk transaction without obtaining a copy of the certificate provided by the director that states that all amounts owing under the Act by the seller in respect of the seller's business have been paid;
a person who distributes the proceeds from the realization of property contrary to section 65 of the Act without obtaining from the director a certificate that states that the amount that constituted a lien under section 64 of the Act has been paid.

(1.3) If it appears from an inspection, audit or examination or from other information available to the director that a person has deducted an amount under section 38 (3) that was in excess of the amount that the person was entitled to deduct under that section, the director must make an assessment against the person in an amount equal to the excess amount deducted plus interest calculated at the rate and in the manner prescribed.

(2.1) If it appears from an inspection, audit or examination or from other information available to the director that a person has not paid an amount required to be paid under section 53 (2), the director must make an assessment against the person in an amount equal to the amount required to be paid under that section.

(2.2) If it appears from an inspection, audit or examination or from other information available to the director that a person has not paid an amount required to be paid under section 65 (4), the director must make an assessment against the person in an amount equal to the amount required to be paid under that section.

SECTION 11: [Carbon Tax Act, section 48]

clarifies that the joint and several liability of a board member under the section includes liability for interest on penalties;
updates cross references to provisions in the Bankruptcy and Insolvency Act (Canada) and the Companies' Creditors Arrangement Act (Canada).

(a) in subsection (1) (a) and (b) by striking out "including penalties and interest on that amount" and substituting "any related penalty and any interest on that amount and the penalty",

(b) in subsection (2) (d) by striking out "a receiving order" and substituting "a bankruptcy order", and

SECTION 12: [Carbon Tax Act, section 51]

authorizes the director to issue a notice of assessment to the custodian or trustee in bankruptcy of a person in relation to whom the director has made an estimate or assessment or has imposed a penalty;
amends the section for consistency with similar provisions of other taxation Acts.

(1) Subject to subsection (1.2), the director must issue a notice of assessment to the person liable to pay an amount estimated, assessed or imposed if the director

(1.2) In addition to, or as an alternative to, issuing a notice of assessment under subsection (1) or (1.1), the director may issue a notice of assessment to the custodian or trustee in bankruptcy of the person referred to in subsection (1) or (1.1).

SECTION 13: [Carbon Tax Act, section 52] clarifies that the director may assess a board member under the section for interest on penalties.

13 Section 52 (1) (a) and (b) is amended by striking out "including penalties and interest on that amount" and substituting "any related penalty and any interest on that amount and the penalty".

SECTION 14: [Carbon Tax Act, section 53]

clarifies that the amount in respect of which a certificate is issued by the director to a seller in relation to a proposed bulk transaction, and the amount owing by a person who purchases fuel or an interest in a business in the bulk transaction without obtaining a copy of the certificate, is the amount owing by the seller under the Act in respect of the seller's business;
provides that the amount owing by a person who purchases fuel or an interest in a business through a bulk transaction without obtaining a copy of the certificate provided by the director must be paid on or before the last day of the month after the month in which the bulk transaction occurred;
makes the section consistent with similar provisions of other taxation Acts.

Certificate required for bulk transaction

(a) a disposition of substantially all of the inventory of fuel in British Columbia of a seller's business;

(b) a disposition of an interest in a seller's business carried on in British Columbia;

"seller's business", in relation to a bulk transaction made, or proposed to be made, by a seller, means the seller's business referred to in paragraph (a) or (b), as the case may be, of the definition of "bulk transaction".

(2) If a person purchases fuel or an interest in a business from a seller through a bulk transaction without obtaining from the seller a duplicate copy of the certificate obtained under subsection (3), the person must pay to the government an amount equal to the total of all amounts owing under this Act, on the date of the bulk transaction, by the seller in respect of the seller's business.

(3) On application in a form and manner specified by the director, the director may issue a certificate in duplicate to a seller in respect of a proposed bulk transaction if all amounts owing under this Act by the seller in respect of the seller's business have been paid.

(4) An amount payable under subsection (2) in respect of a bulk transaction must be paid on or before the last day of the month after the month in which the bulk transaction occurred.

SECTION 15: [Carbon Tax Act, section 58] requires an appellant to pay the additional amount owing, and interest on that amount, if the amount of an estimate or assessment or an amount imposed is increased on appeal.

(3) If the amount of an estimate or assessment or an amount imposed is increased on appeal, the appellant must pay to the government

(b) any additional interest payable on the additional amount owing to the government under this Act.

SECTION 16: [Carbon Tax Act, section 59]

provides that the director may require a vendor who has applied to be appointed as a collector or a person who has applied for a specified certificate to provide a bond;
clarifies the amount on which the maximum amount of a bond is determined;
provides that if there is a change in circumstances after a bond has been provided, the director may vary the required amount of the bond to an amount not greater than the maximum amount provided for in the section;
provides for the circumstances in which the director may return a bond, or pay an amount equal to the amount remaining on a bond, to the person who deposited the bond;
makes the section consistent with similar provisions of other taxation Acts.

Collection bond

(b) a retail dealer of natural gas who has applied for a registration certificate under section 19;

(d) a person who has applied for a registered air service certificate or registered marine service certificate under section 21;

"maximum bond amount", in relation to a bond required to be deposited by a person with the director under this section, means 6 times the estimated amount, determined in a manner and by a procedure the director considers adequate and expedient, of

(a) tax that would normally be collected under this Act by the person in a month in relation to fuel for which the person would not be required to pay security,

(b) tax that would normally be paid under this Act by the person in a month, and

"taxpayer" means a collector, a retail dealer of natural gas who holds a registration certificate, a registered consumer, a registered air service, a registered marine service or a motive fuel user permit holder.

(2) The director may require an applicant or a taxpayer to deposit with the director a bond, by way of cash or other security, satisfactory to the director.

(3) The amount of the bond is to be determined by the director, but the amount must not be greater than the maximum bond amount.

(4) If there is a change in circumstances after a bond is provided under subsection (2), the director may vary the amount of the bond required, but the amount must not be greater than the maximum bond amount.

(5) If a person who has deposited a bond under this section fails to collect or remit tax, pay tax or pay security in accordance with this Act, the director, after giving written notice to the person, may apply all or part of the bond to the amount of tax or security that should have been collected, remitted or paid by the person, to any related penalty and to any interest due on that amount and the penalty.

(6) The director may return a bond deposited under this section, or may pay from the consolidated revenue fund an amount equal to the amount remaining of a bond deposited under this section, to the person who deposited the bond if

(b) the person as a taxpayer has no amount owing to the government under this Act.

SECTION 17: [Carbon Tax Act, section 61]

clarifies that all proceedings may be taken on a certificate issued and filed under the section by the director as if it were a judgment of the court in favour of the government;
provides that the director may issue and file a new certificate if the amount specified in the certificate that has been issued and filed is different from the actual amount owing.

(3) A certificate filed under subsection (2) has the same force and effect, and all proceedings may be taken on the certificate, as if it were a judgment of the court in favour of the government for the recovery of a debt in the amount specified in the certificate against the person named in the certificate.

(4) If the amount specified in a certificate is different from the actual amount owing to the government under this Act, the director may correct the amount by issuing a new certificate specifying the revised amount owed and the name of the person who owes it.

(5) The director may file with the Supreme Court a certificate issued under subsection (4).

(a) revises the certificate filed under subsection (2) that names the same person,

(c) has the same force and effect, and all proceedings may be taken on the certificate, as if it were a judgment of the court in favour of the government for the recovery of a debt in the amount specified in the certificate against the person named in the certificate.

SECTION 18: [Carbon Tax Act, section 64]

clarifies that the lien established under the section applies in relation to all amounts owing under the Act, including amounts owing for interest on penalties;
makes the section consistent with similar provisions of other taxation Acts.

(a) in subsection (1) by repealing the definitions of "associated corporation", "financing statement" and "secured party" and substituting the following:

"amount owing" means an amount remaining unpaid or unremitted, any related penalty and any interest on that amount and the penalty;

"associated corporation" includes a corporation that is determined under subsection (11) to be associated with another corporation for the purposes of this section;

"financing statement" has the same meaning as in the Personal Property Security Act; ,

(b) in subsection (2) by striking out "an amount under this Act and does not pay or remit that amount," and substituting "an amount to the government under this Act and does not pay or remit the amount,",

(c) in subsection (3) by striking out "remaining unpaid and any related penalty or interest on that amount." and substituting "owing.",

(4) On registration of a lien against the personal property of a person under subsection (2) (b), a lien is created on the present and after acquired personal property in which the person has a legal or equitable interest, including, in the case of a lien referred to in paragraph (a) of this subsection, any portion of the property that is subject to a prior lien or security interest, for the following:

the amount of those taxes remaining uncollected or unremitted or security remaining unpaid, any related penalty and any interest on that amount and the penalty;

(b) any amount, other than an amount referred to in paragraph (a), owing by the person under this Act. ,

(f) in subsection (7) (c) and (d) by striking out "calendar" and by striking out "subsection (2) (b)" and substituting "subsection (2) (b), any related penalty and any interest on that amount and the penalty",

(8) In relation to a certificate of lien registered under subsection (2) (a) against the real property of a person, the director may register a certificate of lien in the form prescribed for the purposes of subsection (2) (a) in the appropriate land title office in the same manner that a charge is registered under the Land Title Act if

(a) the certificate of lien registered under subsection (2) (a) against the real property of the person contains a statement of the amount owing, and

(b) the director is satisfied that the amount referred to in paragraph (a) of this subsection that is stated in that certificate of lien is incorrect.

(8.1) In relation to a financing statement registered under subsection (2) (b) against the personal property of a person, the director may register a financing change statement, as defined in the Personal Property Security Act, in the personal property registry if

(a) the financing statement registered under subsection (2) (b) against the personal property of the person contains a statement of the amount owing, and

(b) the director is satisfied that the amount referred to in paragraph (a) of this subsection that is stated in that financing statement is incorrect.

(8.2) A certificate of lien registered under subsection (8) and a financing change statement registered under subsection (8.1) must contain a revised statement of the amount owing.

(8.3) On registration of a certificate of lien against the real property of a person under subsection (8), the certificate of lien registered under subsection (2) (a) against the real property of the person is, at the same time it was originally registered, deemed to be revised to set out the amount owing as stated in the certificate of lien registered under subsection (8).

(8.4) On registration of a financing change statement against the personal property of a person under subsection (8.1), the financing statement registered under subsection (2) (b) against the personal property of the person is, at the same time it was originally registered, deemed to be revised to set out the amount owing as stated in the financing change statement registered under subsection (8.1).

(a) on the oral or written request of a person, disclose in writing the amount of the lien under this section registered against the personal or real property of the person, or

(b) on the written request of a person accompanied by the written consent of a named person, disclose in writing the amount of the lien under this section registered against the personal or real property of the named person. ,

(h) in subsection (11) (b) by striking out "confirms" and substituting "confirm",

(i) in subsection (13) (b) by striking out "section 56," and substituting "section 56 (3),", and

(j) in subsection (14) (b) by striking out "incurred in the sale," and substituting "incurred in the sale".

SECTION 19: [Carbon Tax Act, section 65]

provides that the amount owing by a person who, contrary to the section, distributes the proceeds from the realization of property without obtaining the required certificate from the director must be paid on or before the last day of the month after the month in which the disposition occurred;
makes the section consistent with similar provisions of other taxation Acts.

Responsibility of person having control of property

65 (1) In this section, "secured party" has the same meaning as in the Personal Property Security Act.

(2) This section applies to a person who, as assignee, liquidator, administrator, receiver, receiver manager, trustee, secured party or similar person, other than a trustee appointed under the Bankruptcy and Insolvency Act (Canada), takes control or possession of the property of a person who has collected tax or an amount as if it were tax, is required to collect or remit tax or is required to pay security under this Act.

(3) Before distributing the proceeds from the realization of the property referred to in subsection (2), a person to whom this section applies must obtain from the director a certificate that the amount that constituted a lien under section 64 has been paid.

(4) If a person to whom this section applies distributes the proceeds from the realization of the property referred to in subsection (2), without having obtained the certificate required by subsection (3), the person is personally liable to the government for an amount equal to the amount required to be paid to obtain the certificate.

(5) An amount payable under subsection (4) in respect of a distribution of the proceeds from the realization of property must be paid on or before the last day of the month after the month in which the disposition occurred.

SECTION 20: [Carbon Tax Act, section 67]

is consequential to the enactment of the new Limitation Act;
makes the section consistent with similar provisions of other taxation Acts.

Limitation period

(a) an action for the recovery of an amount owing to the government under section 60,

(2) A collection proceeding may be commenced at any time within 7 years after the date of the notice of assessment for the amount claimed in the collection proceeding.

(3) Despite subsection (2), a collection proceeding that relates to a contravention of this Act or the regulations and that involves wilful default or fraud may be commenced at any time.

(4) If, before the expiry of the limitation period that applies under subsection (2) to an amount claimed, a person acknowledges liability in respect of the amount claimed, the date of the notice of assessment is deemed to be the day on which the acknowledgment is made.

(5) Subsection (4) does not apply to an acknowledgment, other than an acknowledgment referred to in subsection (6), unless the acknowledgment is

(b) signed, by hand or by electronic signature within the meaning of the Electronic Transactions Act,

(6) In the case of an amount claimed to which the limitation period under subsection (2) applies, for the purposes of subsection (4), part payment of the amount by the person against whom the claim is or may be made or by the person's agent is an acknowledgment by the person against whom the claim is or may be made of liability in respect of the claim.

(7) Section 24 (2), (4) and (10) of the Limitation Act applies for the purposes of this section.

(8) The liability of a person for the payment of an amount owing to the government under this Act is not affected by the expiry of the limitation period that applies under subsection (2) to the amount claimed.

SECTION 21: [Carbon Tax Act, section 75] clarifies that a penalty under the section is in addition to any other penalty under the Act.

(5) A penalty under this section is in addition to any other penalty under this Act.

SECTION 22: [Carbon Tax Act, section 84] provides for regulations authorizing the director to suspend or cancel a motive fuel user permit held by a person who refuses or neglects to provide a bond under section 59 of the Act.

(r.1) providing for suspension and cancellation by the director of motive fuel user permits held by persons who refuse or neglect to comply with a requirement of the director to deposit a bond under section 59; .

SECTION 23: [Financial Administration Act, section 16.1] authorizes the collection, use and disclosure of debtor information held by the government for the purposes of recovering debts and obligations owed to the government.

23 The Financial Administration Act, R.S.B.C. 1996, c. 138, is amended by adding the following section:

Sharing information to collect debts

(a) a person, within the ministry of the Minister of Finance, who is responsible for performing duties in relation to the collection of debts or obligations;

(c) a service provider, or an employee of a service provider, who is responsible for performing duties in relation to the collection of debts or obligations on behalf of the ministry of the Minister of Finance;

"debtor" means a person who, under an enactment or a program of the government, owes a debt or obligation to the government;

(b) was collected under a non-tax enactment or a program of the government for the purpose of the enactment or program;

"personal representative", if applicable in relation to a debtor, means the following:

(a) the debtor's agent or attorney within the meaning of the Power of Attorney Act;

(b) the debtor's representative under a representation agreement made in accordance with the Representation Agreement Act, authorized to make decisions, or to assist in making decisions, in relation to the debtor's financial affairs;

(c) a committee, within the meaning of the Patients Property Act, granted power over the financial affairs of the debtor;

(d) a person responsible for the administration of the debtor's estate under section 51 of the Indian Act (Canada);

"refund" means an amount owing, under a non-tax enactment or a program of the government, to a debtor by the government that is in the nature of

(2) For the purpose of recovering debts or obligations owed to the government under any enactment or a program of the government,

(i) collect and use debtor information in the custody or control of the ministry of the Minister of Finance,

(ii) request an appropriate officer or employee of a ministry to disclose debtor information, respecting one or more specified debtors, in the custody or control of the ministry to which the officer or employee belongs, and

(iii) collect and use debtor information provided by, and disclose debtor information to, the debtor's personal representative, and

(b) an officer or employee referred to in paragraph (a) (ii) must disclose to a collection officer the requested debtor information.

(a) a debtor's name, including former names and names by which a debtor is or has been commonly known;

(i) the date on which a debtor was incorporated or otherwise established and, if applicable, ceased to be incorporated or established, and

(ii) a debtor's business contact information, including contact information contained in a government registry office;

(e) unique identifiers issued to a debtor by the government of any jurisdiction of Canada, including, if applicable, a debtor's social insurance number and identifiers issued by a government registry office;

(f) information respecting the identity and location of assets in which a debtor has or may have an interest, including accounts held at financial institutions;

(g) information respecting debts or obligations owed to the government by a debtor;

(i) information respecting bankruptcy or insolvency proceedings to which a debtor is or has been subject;

(j) information given by a debtor to the government for the purpose of receiving income or premium assistance, support services, a loan, a credit or a benefit;

(a) despite any provision of a non-tax enactment that requires a person to keep information collected under that enactment confidential,

(b) despite any agreement or representation made with respect to a program of the government that a person will keep information collected in relation to the program confidential,

(d) regardless of the purpose for which, or the circumstances under which, debtor information was originally collected.

(5) For the purpose of subsection (4) (b), the collection, use or disclosure of debtor information under this section does not constitute a breach or contravention of, or a default under, the agreement or representation.

(6) The Lieutenant Governor in Council may make regulations respecting any matter for which regulations are contemplated by this section.

SECTION 24: [Financial Administration Act, sections 84.1 to 84.3]

sets out the process whereby the Insurance Corporation of British Columbia, upon receipt of a notice from the Minister of Finance, must refuse to issue a person's driver's licence or a licence and number plate for any vehicle or trailer owned by the person, if the person owes a prescribed "government claim" as defined in section 84.1 of the Act, as added by this Bill, and, as prescribed, is in default of that claim;
disapplies the Offence Act as set out;
authorizes the Minister of Finance to delegate specified powers, duties and functions of the Minister of Finance.

Debtor's licences and number plates

"government claim" means a prescribed government claim within the meaning of government claim in section 86.1 (1), but does not include a claim by the Insurance Corporation of British Columbia for "vehicle indebtedness" as defined in that section.

(2) The Minister of Finance may take action under subsection (3) with respect to a debtor if

(a) the debtor is in default, as prescribed by regulation, in paying a government claim, or

(b) the debtor fails or ceases to comply with a payment arrangement referred to in subsection (5) (d) or (9) (e).

(3) In the circumstances described in subsection (2), the Minister of Finance may do either or both of the following with respect to the debtor:

(a) forward to the Insurance Corporation of British Columbia a notice stating that action under this section is to be taken in relation to the debtor's driver's licence;

(b) forward to the Insurance Corporation of British Columbia a notice stating that action under this section is to be taken in relation to a licence and corresponding number plates for any motor vehicle or trailer owned by the debtor.

(4) At least 30 days before forwarding a notice to the Insurance Corporation of British Columbia under subsection (3), the Minister of Finance must give the debtor notice that action will be taken in relation to either or both of the following:

(b) a licence and corresponding number plates for any motor vehicle or trailer owned by the debtor.

(5) Despite subsection (3), the Minister of Finance must not take action under that subsection if, before taking action, one of the following occurs:

(a) the debtor has paid the total amount of the government claim to the Minister of Finance;

(b) the Minister of Finance has knowledge that the government claim has ceased to be payable other than as set out in paragraph (a);

(d) the debtor has entered into a payment arrangement to pay the government claim, on the terms the Minister of Finance considers appropriate, and has complied with the arrangement for the period of time the Minister of Finance considers appropriate;

(e) the Minister of Finance is satisfied that the debtor, without a driver's licence or licence and corresponding number plates for any motor vehicle or trailer owned by the debtor, will experience great hardship or financial difficulty to such an extent that the debtor will be unable to pay the government claim in whole or in part.

(6) On receipt of a notice forwarded under subsection (3) (a), the Insurance Corporation of British Columbia, for the applicable period under subsection (8), must not issue a driver's licence to the debtor.

(7) On receipt of a notice forwarded under subsection (3) (b), the Insurance Corporation of British Columbia, for the applicable period under subsection (8), must not issue a licence and corresponding number plates for a motor vehicle or trailer owned by the debtor.

(8) Subsections (6) and (7) apply in relation to the debtor from the date the Insurance Corporation of British Columbia receives the applicable notice forwarded under subsection (3) until the date the Minister of Finance, under subsection (9), directs the Insurance Corporation of British Columbia to disregard the notice.

(9) The Minister of Finance, on application by a debtor or on the initiative of the Minister of Finance, must direct the Insurance Corporation of British Columbia to disregard the notice forwarded to the Insurance Corporation of British Columbia under subsection (3) respecting the debtor if one of the following occurs:

(a) the Minister of Finance has determined that the notice contains or is based on a material error;

(b) the debtor has paid the total amount of the government claim to the Minister of Finance;

(c) the Minister of Finance has knowledge that the government claim has ceased to be payable other than as set out in paragraph (b);

(d) the Minister of Finance has determined that the limitation period for the government claim has expired;

(e) the debtor has entered into a payment arrangement to pay the government claim, on the terms the Minister of Finance considers appropriate, and has complied with the arrangement for the period of time the Minister of Finance considers appropriate;

(f) the Minister of Finance is satisfied that the debtor, without a driver's licence or licence and corresponding number plates for any motor vehicle or trailer owned by the debtor, will experience great hardship or financial difficulty to such an extent that the debtor will be unable to pay the government claim in whole or in part;

(g) despite subsection (11) (b), the Minister of Finance is satisfied that the debtor did not actually receive the notice given to the debtor under subsection (4).

(10) As soon as practicable after directing the Insurance Corporation of British Columbia under subsection (9) to disregard the notice forwarded to the Insurance Corporation of British Columbia under subsection (3) respecting a debtor, the Minister of Finance must give the debtor notice that the Minister of Finance has taken that action.

(a) must be sent by ordinary mail to the last known address of the debtor in the records of the Ministry of Finance, and

(12) Action by the Minister of Finance under this section is not a bar to the bringing of other proceedings to enforce the payment of the government claim.

Section 5 of Offence Act does not apply

84.2 Section 5 of the Offence Act does not apply to section 84.1 or to a regulation made under section 84.1.

Delegation by Minister of Finance

84.3 (1) The Minister of Finance may delegate to any person or class of persons any or all of the powers, duties and functions of the Minister of Finance under or in relation to section 84.1 (2), (3), (4), (5), (9) and (10).

(b) does not prevent the Minister of Finance from exercising the delegated power or carrying out the delegated duty or function, and

SECTION 25: [Financial Administration Act, section 88] authorizes the Lieutenant Governor in Council to make regulations for the purposes of section 84.1 of the Act, as added by this Bill.

(c) for the purposes of the definition of "government claim" in section 84.1 (1), prescribing government claims or types of government claims;

(d) for the purposes of section 84.1 (2) (a), prescribing the circumstances that constitute a debtor being in default in paying a government claim prescribed under paragraph (c), which circumstances may be different for different government claims or different types of government claims.

SECTION 26: [Income Tax Act, section 4.35] clarifies rules that apply if more than one individual is deducting amounts for the child arts credit, including that the individuals

may deduct amounts under this section only if they are also making deductions under section 118.031 of the federal Act, and
must make the deductions using the same proportions used under the federal Act.

26 Section 4.35 (3) of the Income Tax Act, R.S.B.C. 1996, c. 215, is repealed and the following substituted:

(3) If more than one individual is entitled to a deduction under this section for a taxation year in respect of a qualifying child, the following rules apply to those individuals for that taxation year in respect of that qualifying child:

(a) the individuals may deduct an amount under this section only if the individuals deduct an amount under section 118.031 of the federal Act;

(b) in respect of those individuals who meet the requirement referred to in paragraph (a) of this subsection,

(i) the total of all amounts deducted by the individuals under this section must not exceed the maximum amount that would be deductible for the year by any one of the individuals if that individual were the only individual entitled to deduct an amount under this section, and

(ii) the amount that is deductible under this section by any one of the individuals must be determined using the same proportion that, under section 118.031 (4) of the federal Act, is agreed to by that individual or is fixed for that individual by the federal minister.

SECTION 27: [Income Tax Act, section 4.51] provides for the deduction of the adoption expense credit in determining the amount an individual may deduct in relation to a dependent who has a mental or physical impairment.

27 Section 4.51 is amended in subsection (2) (b) and in the description of "T" in subsection (4) by striking out "4.32 [pension credit]," and substituting "4.32 [pension credit], 4.33 [adoption expense credit],".

SECTION 28: [Income Tax Act, section 25] corrects a reference.

28 Section 25 (3) is amended by striking out "mining reclamation trust" and substituting "qualifying environmental trust".

SECTION 29: [Income Tax Act, section 37] incorporates section 162 (7.01) and (7.02) of the federal Act in order to add a penalty for persons who fail to file information returns when and as required.

29 Section 37 (1) is amended by striking out "and (11)" and substituting ", (7.01), (7.02) and (11)".

SECTION 30: [Income Tax Act, section 37] incorporates section 162 (7.2) of the federal Act in order to add a penalty for corporations who fail to electronically file income tax returns.

30 Section 37 (1) is amended by striking out "and (11)" and substituting ", (7.2) and (11)".

SECTION 31: [Income Tax Act, section 37] incorporates section 162 (7.3) of the federal Act in order to add a penalty for tax preparers who fail to electronically file income tax returns.

31 Section 37 (1) is amended by striking out "and (11)" and substituting ", (7.3) and (11)".

SECTION 32: [Income Tax Act, sections 40 and 68.1] reflects that certain notices may be sent electronically rather than by mail.

32 Sections 40 (1) (a), (b), (b.1) and (c) and 68.1 (4) are amended by striking out "mailing" and substituting "sending".

SECTION 33: [Income Tax Act, section 56] is consequential to the repeal by this Bill of section 60 of the Act.

33 Section 56 (2) (b) is amended by striking out ", or under section 60 of this Act".

SECTION 34: [Income Tax Act, section 60] repeals section 60 of the Act to avoid the imposition of duplicate penalties under that section and section 37 as amended by this Bill.

SECTION 35: [Income Tax Act, section 61] is consequential to the repeal by this Bill of section 60 of the Act.

(a) by striking out "a penalty under section 227 (8), (9) or (9.5) of the federal Act" and substituting "a penalty under any of section 162 (1) to (3), (5), (7), (7.01), (7.02), (7.2), (7.3) or (11) or 227 (8), (9) or (9.5) of the federal Act", and

SECTION 36: [Income Tax Act, section 142] provides that subsection (6) (b) of the section does not apply if the individual and the individual's spouse or common-law partner

have been living separate and apart for at least 90 days due to a breakdown of their relationship, or
are living separate and apart because of medical necessity.

(a) in subsection (6) (b) by striking out "if an individual and the individual's spouse or common-law partner" and substituting "subject to subsection (7.1), if an individual and the individual's spouse or common-law partner", and

(7.1) Subsection (6) (b) does not apply if, on December 31 of the taxation year, the individual and the individual's spouse or common-law partner

(a) have been living separate and apart for a period of at least 90 days because of a breakdown of their marriage or common-law relationship, or

SECTION 37: [Mineral Tax Act, section 30] provides for

the disclosure of information obtained under the Act for the purposes of administering or enforcing the Act or another taxation Act or in court proceedings relating to the Act or another taxation Act, and
the disclosure of the aggregate amount of any mineral tax, interest, penalties or refunds paid or payable under the Act by or to an operator for a fiscal year, if the disclosure is for the purposes of administering or implementing a resource revenue-sharing agreement between the government and a first nation.

(1) A person must not disclose information obtained under this Act except as follows:

(a) for the purposes of administering or enforcing this or another taxation Act;

(4) A person may disclose the aggregate amount of any mineral tax, interest, penalties or refunds paid or payable under this Act by or to an operator for a fiscal year, if the disclosure is for the purposes of administering or implementing a resource revenue-sharing agreement between the government and a first nation.

SECTION 38: [Motor Fuel Tax Act, section 1] amends the definition of "tax" to provide that, except in section 43 of the Act, tax includes

amounts owing by a person who purchases fuel or an interest in a business through a bulk transaction without obtaining a copy of the certificate provided by the director that states that all amounts owing under the Act by the seller in respect of the seller's business have been paid, and
amounts owing by a person who, contrary to section 57.2 of the Act, distributes the proceeds from the realization of property without obtaining from the director a certificate that states that the amount that constituted a lien under section 57.1 of the Act has been paid.

38 Section 1 of the Motor Fuel Tax Act, R.S.B.C. 1996, c. 317, is amended by repealing the definition of "tax" and substituting the following:

"tax", in relation to tax under this Act, includes all penalties and interest that are or may be added to that tax, and, except in section 43, includes

(b) an amount for which a person is personally liable to the government under section 57.2 (4); .

SECTION 39: [Motor Fuel Tax Act, section 1.2] provides that if more than one person is subject to the same tax, or is required to pay the same security to the government, each person is jointly and severally liable for the tax or for payment of the security.

Liability of other persons

1.2 (1) If more than one person is subject to tax under the same provision of this Act in respect of the same fuel, each person is jointly and severally liable for the tax.

SECTION 40: [Motor Fuel Tax Act, section 19] provides that before the director issues or renews a carrier licence, the director may require the applicant to provide, by a specified date, a bond under section 53 of the Act, and that the director may refuse to issue the licence if the bond is not provided by that date.

(3.1) Before the director issues or renews a licence under subsection (1), the director may require the applicant to deposit a bond under section 53 by the date specified by the director.

(3.2) The director may refuse to issue or renew a licence under subsection (1) if the applicant has failed to deposit a bond required under section 53 by the date specified by the director under subsection (3.1) of this section.

SECTION 41: [Motor Fuel Tax Act, section 21]

provides that a seller who is a collector, deputy collector or retail dealer may not make a deduction or claim a refund under the section in respect of a sale of fuel for which the full amount of the consideration was not paid unless the seller writes off the unpaid amount as unrealizable or uncollectable within 4 years of the date on which the seller remitted or paid tax or security in respect of the fuel;
provides that a collector, deputy collector or retail dealer who has made a deduction or claimed a refund under the section in respect of a sale of fuel and who recovers unpaid consideration for the sale must pay to the government an amount determined in the prescribed manner on or before the last day of the month following the month in which the recovery is made;
makes the section consistent with similar provisions of other taxation Acts.

Refund or deduction for bad debts

(ii) pays or has paid the security required under this Act to be paid in respect of the fuel,

(c) the person buying the fuel does not pay to the seller the full amount of the consideration in respect of the sale, and

(3) If a seller to whom this section applies in respect of a sale is a collector, the seller may deduct the specified amount from the amount of taxes or security that the seller is required to remit or pay under this Act in respect of the reporting period in which the seller writes off the amount owing referred to in subsection (2) (d).

(4) A deduction referred to in subsection (3) must be made in a form specified by the director.

(b) if the seller is a collector, the seller has not made a deduction under subsection (3) in respect of the sale,

the director must refund from the consolidated revenue fund the specified amount to the seller.

(6) If a seller who is a collector has made a deduction under subsection (3) or obtained a refund under subsection (5) and recovers some or all of the amount referred to in subsection (2) (d) with respect to which the refund was paid or the deduction was made, the seller must add an amount, determined in the prescribed manner, to the tax to be remitted or security to be paid by the seller under this Act in respect of the reporting period in which the recovery was made.

SECTION 42: [Motor Fuel Tax Act, section 26] provides that a refund under section 21 (5) of the Act in respect of a sale of fuel must not be paid to a person more than 4 years after the date on which the person writes off as unrealizable or uncollectable the amount owing in respect of the sale.

(a) in subsection (1) by striking out "and" at the end of paragraph (a) and by repealing paragraph (b) and substituting the following:

(c) a refund to a person under section 21 (5) must not be made on a claim for a refund that is received by the director more than 4 years after the date on which the person who sold the fuel referred to in section 21 writes off as unrealizable or uncollectable the amount owing by the person who bought that fuel. , and

(b) in subsection (2) by striking out "was paid." and substituting "was paid or remitted."

SECTION 43: [Motor Fuel Tax Act, section 28] provides that before the director appoints an applicant under the section, the director may require the applicant to provide, by a specified date, a bond under section 53 of the Act, and that the director may refuse to make the appointment if the bond is not provided by that date.

(2.11) Before the director makes an appointment under subsection (1) or (2.1), the director may require the applicant to deposit a bond under section 53 by the date specified by the director.

(2.12) The director may refuse to make an appointment under subsection (1) or (2.1) if the applicant has failed to deposit a bond required under section 53 by the date specified by the director under subsection (2.11) of this section.

SECTION 44: [Motor Fuel Tax Act, section 37] provides that before the director issues a registered consumer certificate to an applicant, the director may require the applicant to provide, by a specified date, a bond under section 53 of the Act, and that the director may refuse to issue the certificate if the bond is not provided by that date.

(3.1) Before the director issues a registered consumer certificate under subsection (1), the director may require the applicant to deposit a bond under section 53 by the date specified by the director.

(3.2) The director may refuse to issue a registered consumer certificate under subsection (1) if the applicant has failed to deposit a bond required under section 53 by the date specified by the director under subsection (3.1) of this section.

SECTION 45: [Motor Fuel Tax Act, section 43] requires the director to make an assessment against the following:

a person who deducted under section 21 (3) of the Act an amount in excess of the amount the person was entitled to deduct under that section;
a person who purchases fuel or an interest in a business through a bulk transaction without obtaining a copy of the certificate provided by the director that states that all amounts owing under the Act by the seller in respect of the seller's business have been paid;
a person who distributes the proceeds from the realization of property contrary to section 57.2 of the Act without obtaining from the director a certificate that states that the amount that constituted a lien under section 57.1 of the Act has been paid.

(2.02) If it appears from an inspection, audit or examination or from other information available to the director that a person has deducted an amount under section 21 (3) that was in excess of the amount that the person was entitled to deduct under that section, the director must make an assessment against the person in an amount equal to the excess amount deducted plus interest calculated at the rate and in the manner prescribed.

(2.2) If it appears from an inspection, audit or examination or from other information available to the director that a person has not paid an amount required to be paid under section 49.1 (2), the director must make an assessment against the person in an amount equal to the amount required to be paid under that section.

(2.3) If it appears from an inspection, audit or examination or from other information available to the director that a person has not paid an amount required to be paid under section 57.2 (4), the director must make an assessment against the person in an amount equal to the amount required to be paid under that section.

SECTION 46: [Motor Fuel Tax Act, section 45.1]

clarifies that the joint and several liability of a board member under the section includes liability for interest on penalties;
amends the section, consequential to the amendment to section 55 of the Act by this Bill;
updates cross references to provisions in the Bankruptcy and Insolvency Act (Canada) and the Companies' Creditors Arrangement Act (Canada).

(a) in subsection (1) (a) and (b) by striking out "including penalties and interest on that amount" and substituting "any related penalty and any interest on that amount and the penalty",

(b) in subsection (2) (a) by striking out "section 55 (1)" and substituting "section 55",

(d) in subsection (2) (e) by striking out "section 11 (3)" and substituting "section 11.02".

SECTION 47: [Motor Fuel Tax Act, section 46]

authorizes the director to issue a notice of assessment to the custodian or trustee in bankruptcy of a person in relation to whom the director has made an estimate or assessment or has imposed a penalty;
amends the section for consistency with similar provisions of other taxation Acts.

(1) Subject to subsection (1.2), the director must issue a notice of assessment to the person liable to pay an amount estimated, assessed or imposed if the director

SECTION 48: [Motor Fuel Tax Act, section 46.1] clarifies that the director may assess a board member under the section for interest on penalties.

48 Section 46.1 (1) (a) and (b) is amended by striking out "including penalties and interest on that amount" and substituting "any related penalty and any interest on that amount and the penalty".

SECTION 49: [Motor Fuel Tax Act, section 49.1]

clarifies that the amount in respect of which a certificate is issued by the director to a seller in relation to a proposed bulk transaction, and the amount owing by a person who purchases fuel or an interest in a business in the bulk transaction without obtaining a copy of the certificate, is the amount owing by the seller under the Act in respect of the seller's business;
provides that the amount owing by a person who purchases fuel or an interest in a business through a bulk transaction without obtaining a copy of the certificate provided by the director must be paid on or before the last day of the month after the month in which the bulk transaction occurred;
makes the section consistent with similar provisions of other taxation Acts.