2000 Legislative Session: 4th 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
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 of the Income Tax Act, R.S.B.C. 1996, c. 215, is amended
(a) in subsection (1) by repealing the definition of "individual" and substituting the following:
"individual" means a person other than a corporation and includes a trust or estate; ,
(b) in subsection (7) (i) by striking out "a reference in that section" and substituting "subject to subsection (8), a reference in that section", and
(c) by adding the following subsections:
(8) In applying any of the following provisions of the federal Act for the purposes of this Act, a reference in that provision to Canada must be read as a reference to Canada:
(a) section 118.5;
(b) section 118.6 (1);
(c) the definition of "specified individual" in the proposed section 120.4 of the federal Act as that definition applies for the purposes of sections 4 (1) and 4.84 of this Act;
(d) the definitions of "eligible individual" and "return of income" in section 122.6 of the federal Act as those definitions apply for the purposes of sections 10 to 13 of this Act.
(9) Subsection (8) (c) of this section applies only if the proposed section 120.4 of the federal Act, as contained in section 30 of the Income Tax Amendments Act, 1999 (Canada), is enacted, with or without amendments, by the Parliament of Canada.
2 Part 1 is amended by adding the following heading before section 2:
Division 1 — Liability for Tax .
3 Section 3 is repealed.
4 The following heading is added before section 4:
Division 2 — Individual Income Tax .
5 Section 4 is repealed and the following sections are substituted:
4 (1) In this Division:
"appropriate percentage" for a taxation year means the lowest percentage specified in section 4.1 (1) that is applicable in determining tax payable under this Act for the year;
"income earned in the taxation year in British Columbia" means the income earned in the taxation year in British Columbia as determined in accordance with federal regulations made for purposes of the definition of "income earned in the year in a province" in section 120 (4) of the federal Act;
"income earned in the taxation year outside British Columbia" means income for the year minus income earned in the taxation year in British Columbia;
"income for the year" means,
(a) in the case of an individual to whom section 114 of the federal Act applies who was resident in Canada during part only of the year, the individual's income for the year as defined in section 120 (3) (a) of the federal Act,
(b) in the case of an individual who was not resident in Canada at any time in the year, the individual's income for the year as defined in section 120 (3) (b) of the federal Act,
(c) in the case of an individual who is a specified individual in relation to the year, the individual's income for the year as defined in the proposed section 120 (3) (c) of the federal Act, and
(d) in the case of any other individual, the individual's income for the year as determined in accordance with and for the purposes of the federal Act;
"surtax" means the amount of the increase in tax referred to in section 4.86 (2).
(2) Paragraph (c) of the definition of "income for the year" applies only if the proposed section 120 (3) (c) of the federal Act, as contained in section 27 (3) of the Income Tax Amendments Act, 1999 (Canada) is enacted, with or without amendments, by the Parliament of Canada.
4.1 (1) Subject to subsections (2), (3), (5) and (6) of this section and to sections 4.8 to 4.84 and 4.86, the tax payable under this Act by an individual on the individual's taxable income for the 2000 taxation year is as follows:
(a) if the taxable income does not exceed $30 004, 8.4% of the taxable income;
(b) if the taxable income exceeds $30 004 and does not exceed $60 009,
(i) the highest amount that might be determined for an individual under paragraph (a) of this subsection,
plus
(ii) 12.4% of the amount by which the taxable income exceeds $30 004 and does not exceed $60 009;
(c) if the taxable income exceeds $60 009,
(i) the highest amount that might be determined for an individual under paragraph (b) of this subsection,
plus
(ii) 14.35% of the amount by which the taxable income exceeds $60 009.
(2) For the purposes of subsection (1) (b) (i) and (c) (i), the highest amount that might be determined for an individual under subsection (1) (a) or (b), as the case may be, must be rounded to the nearest multiple of one dollar or, if the highest amount is equidistant from 2 such consecutive multiples, to the higher multiple.
(3) Subject to subsections (4) to (6) of this section and to sections 4.8 to 4.84 and 4.86, if the individual is an inter vivos trust, as defined in section 108 (1) of the federal Act, the tax payable under this Act by the trust on its taxable income for a taxation year is the amount determined by the formula
H x I
where
H is the highest percentage specified in subsection (1) of this section that applies in determining tax that might be payable by an individual under this Act for the year, and
I is the taxable income of the inter vivos trust for the year.
(4) Subsection (3) of this section does not apply to an inter vivos trust exempted under section 122 (2) of the federal Act from the application of section 122 (1) of that Act.
(5) Subject to section 4.85 (1), if the individual was resident in British Columbia on the last day of the taxation year and had income earned in the taxation year outside British Columbia, the tax payable under this Act is the amount determined by the formula
| A | x | (B - C) |
|
|
||
| B |
where
A is the amount determined for the individual under
(a) subsections (1) and (2) of this section, if the individual is not an inter vivos trust to which subsection (3) applies, or
(b) subsection (3), if the individual is an inter vivos trust to which subsection (3) applies,
B is the individual's income for the year, and
C is the individual's income earned in the taxation year outside British Columbia.
(6) Subject to section 4.85 (2), if the individual was not resident in British Columbia on the last day of the taxation year but had income earned in the taxation year in British Columbia, the tax payable under this Act is the amount determined by the formula
| A | x | B |
|
|
||
| C |
where
A is the amount determined for the individual under
(a) subsections (1) and (2) of this section, if the individual is not an inter vivos trust to which subsection (3) applies, or
(b) subsection (3), if the individual is an inter vivos trust to which subsection (3) applies,
B is the individual's income earned in the taxation year in British Columbia, and
C is the individual's income for the year.
4.2 (1) The amounts that, in computing an individual's tax, may be deducted under sections 4.3 to 4.65, 4.67, 4.69 and 4.7 may be deducted only in the order indicated in section 4.79 (1) and, subject to section 4.84 (3) (b), only from the amount of tax payable under section 4.1.
(2) The amounts that, in computing an individual's tax, may be deducted under sections 4.68 and 4.71 may be deducted only in the order indicated in section 4.79 (2) and, subject to section 4.84 (3) (c), only from
(a) the amount of tax payable under sections 4.8 to 4.83,
plus
(b) the amount of tax payable under section 4.1 minus any amounts deducted under the provisions referred to in subsection (1) of this section.
(3) The amounts that, in computing an individual's tax, may be deducted under sections 4.72, 13.1, 19 (2) and (7), 19.1, 20 and 21 may be deducted only in the order indicated in section 4.79 (3) and only from
(a) the amount of surtax payable minus any amounts deducted under section 4.86 (3),
plus
(b) the amount of tax payable under sections 4.1, 4.8 to 4.83 and 19 (3) minus any amounts deducted under the provisions referred to in subsections (1) and (2) of this section.
4.3 (1) For the purpose of computing the tax payable under this Act for a taxation year by an individual, there may be deducted an amount determined by the formula
A x B
where
A is the appropriate percentage for the year,
B is the total of
(a) if the individual is entitled to a deduction under section 118 (1) (a) of the federal Act [spousal credit] for the year, an amount equal to the total of
(i) $7 231, and
(ii) an amount determined by the formula
$6 140 - (C - $614)
where
C is the greater of $614 and the income for the year of the individual's spouse or, if the individual and the individual's spouse are living separate and apart at the end of that year by reason of a breakdown of their marriage, the spouse's income while married and not so separated,
(b) if the individual is entitled to a deduction under section 118 (1) (b) of the federal Act [equivalent to spousal credit] for the year by reason of a dependent person referred to in that section, an amount equal to the total of
(i) $7 231, and
(ii) an amount determined by the formula
$6 140 - (D - $614)
where
D is the greater of $614 and the dependent person's income for the year,
(c) if the individual is entitled to a deduction under section 118 (1) (c) of the federal Act [basic personal credit - single status], $7 231,
(d) if the individual is entitled to a deduction under section 118 (1) (c.1) of the federal Act [in-home care of relative credit] by reason of a particular person described in that section, the amount determined by the formula
$14 047 - D.1
where
D.1 is the greater of $11 661 and the particular person's income for the year,
(e) if the individual is entitled to a deduction under section 118 (1) (d) of the federal Act [infirm dependant credit] by reason of a dependant described in that section, the amount determined by the formula
$7 231 - E
where
E is the greater of the dependant's income for the year and the amount by which $7 231 exceeds $2 386, and
(f) if the individual is entitled to a deduction in respect of a person under section 118 (1) (b) of the federal Act and would also be entitled, but for section 118 (4) (c) of that Act, to a deduction because of section 118 (1) (c.1) [in-home care of relative credit] or (d) [infirm dependant credit] of that Act in respect of the person, the amount by which the amount determined under paragraph (d) or (e) of this subsection, as the case may be, exceeds the amount determined under paragraph (b) of this subsection in respect of the person.
(2) Section 118 (4) to (6) of the federal Act applies for the purposes of this section.
4.31 For the purpose of computing the tax payable under this Act for a taxation year by an individual who is entitled to a deduction under section 118 (2) of the federal Act for the year, there may be deducted the amount determined by the formula
A x ($3 531 - B)
where
A is the appropriate percentage for the year, and
B is 15% of the amount, if any, by which the individual's income for the year would exceed $26 284 if no amount were included in respect of a gain from a disposition of property to which section 79 of the federal Act applies in computing that income.
4.32 (1) For the purpose of computing the tax payable under this Act for a taxation year by an individual who is entitled to a deduction under section 118 (3) of the federal Act for the year, there may be deducted the amount determined by the formula
A x B
where
A is the appropriate percentage for the year, and
B is the smaller of $1 000, and
(a) if the individual has reached 65 years of age before the end of the year, the pension income received by the individual in the year, and
(b) if the individual has not reached 65 years of age before the end of the year, the qualified pension income received by the individual in the year.
(2) Section 118 (7) and (8) of the federal Act applies for the purposes of this section.
4.4 For the purpose of computing the tax payable under this Act for a taxation year by an individual who is entitled to a deduction under section 118.1 (3) of the federal Act for the year, there may be deducted the amount the individual claims not exceeding the amount determined by the formula
(A x B) + [C x (D - B)]
where
A is the appropriate percentage for the year,
B is the smaller of $200 and 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,
C is the highest percentage specified in section 4.1 of this Act that applies in determining tax that might be payable under this Act for the year, and
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.
4.5 For the purpose of computing the tax payable under this Act for a taxation year by an individual who is entitled to a deduction under section 118.2 (1) of the federal Act for the year, there may be deducted an amount determined by the formula
[A x (B - C)] - D
where
A is the appropriate percentage for the year,
B is the amount 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,
C is the smaller of $1 637 and 3% of the individual's income for the year, and
D is 32% of the total of all amounts each of which is the amount, if any, by which
(a) the income for the year of a person (other than the individual and the individual's spouse) in respect of whom an amount is included in computing the individual's deduction under this section for the year
exceeds
(b) $7 231.
4.51 (1) For the purpose of computing the tax payable under this Act for a taxation year by an individual who is entitled to a deduction under section 118.3 (1) of the federal Act for the year, there may be deducted an amount determined by the formula
A x $4 293
where
A is the appropriate percentage for the year.
(2) For the purpose of computing the tax payable under this Act for a taxation year by an individual who is entitled to a deduction under section 118.3 (2) of the federal Act for the year in respect of a person referred to in that section, there may be deducted the amount, if any, by which
(a) the amount deductible under subsection (1) of this section in computing that person's tax payable under this Act for the year or that would be so deductible if the person were liable under section 2 to pay tax for the year,
exceeds
(b) the amount that would be the person's tax payable under this Act for the year if the person were liable under section 2 to pay tax for the year and if the only amounts deductible were the amounts under sections 4.3 [personal credits], 4.31 [age credit], 4.32 [pension credit] and 4.64 [credit for EI premium and CPP contribution].
(3) For the purpose of computing the tax payable under this Act for a taxation year by an individual who has not reached 18 years of age before the end of the taxation year and who is entitled to a deduction under section 118.3 (1) of the federal Act for the year, there may be deducted an amount determined by the formula
A x ($2 941- B)
where
A is the appropriate percentage for the year, and
B is the smaller of
(a) $2 941, and
(b) the amount, if any, by which the total of all amounts, each of which is an amount paid in the year for the care or supervision of the individual and included in computing the deductions under sections 63, 64 and 118.2 of the federal Act, exceeds $2 000.
(4) For the purpose of computing the tax payable under this Act for a taxation year by an individual who is entitled to a deduction under section 118.3 (2) of the federal Act for the year in respect of a person referred to in that section, there may be deducted an amount determined by the formula
D - (T - U)
where
D is the amount deductible under subsection (3) of this section in computing that person's tax payable under this Act for the year or that would be so deductible if the person were liable under section 2 to pay tax for the year,
T is the amount that would be the person's tax payable under this Act for the year if the person were liable under section 2 to pay tax for the year and if the only amounts deductible were the amounts under sections 4.3 [personal credits], 4.31 [age credit], 4.32 [pension credit] and 4.64 [credit for EI premium and CPP contribution], and
U is the amount by which the amount deductible under subsection (1) of this section in computing the person's tax payable under this Act for the year, or that would be so deductible if the person were liable under section 2 to pay tax for the year, exceeds any amount deducted for the year in respect of the person under subsection (2).
(5) Subsections (3) and (4) apply only if the proposal contained in paragraph (15) of the Notice of Ways and Means Motion to Amend the Income Tax Act tabled in the House of Commons on February 28, 2000 is enacted, with or without amendments, by the Parliament of Canada.
(6) Section 118.3 (3) of the federal Act applies for the purposes of subsections (2) and (4) of this section.
4.6 Section 118.5 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 reference in that section to the appropriate percentage for the year is to be read as the appropriate percentage for the year as defined in section 4 of this Act.
4.61 (1) For the purpose of computing the tax payable under this Act for a taxation year by an individual who is entitled to a deduction under section 118.6 (2) of the federal Act for the year, there may be deducted an amount determined by the formula
A x B
where
A is the appropriate percentage for the year, and
B is the total of the products obtained when
(a) $200 is multiplied by the number of months in the year during which the individual is enrolled in a qualifying educational program as a full-time student at a designated educational institution, and
(b) $60 is multiplied by the number of months in the year, other than the months described in paragraph (a) of this subsection, each of which is a month during which the individual is enrolled at a designated educational institution in a specified educational program that provides that each student in the program spend not less than 12 hours in the month on courses in the program.
(2) Section 118.6 (1) and (3) of the federal Act apply for the purposes of this section.
4.62 (1) For the purpose of computing the tax payable under this Act for a taxation year by an individual, there may be deducted the smaller of
(a) the individual's unused tuition and education tax credits at the end of the preceding taxation year, and
(b) the amount that would be the individual's tax payable under this Act for the year if no amount were deductible under any of sections 4.4 [charitable and other gifts], 4.5 [medical expense credit], 4.6 [tuition credit], 4.61 [education tax credit], 4.63 [credit for interest on student loan], 4.65 [transfer of unused credits to spouse], 4.67 [transfer of unused credits to parent or grandparent] and 4.69 [dividend tax credit].
(2) Subject to subsections (3) and (4), an individual's unused tuition and education tax credits at the end of a taxation year is the amount determined by the formula
A + (B - C) - (D + E)
where
A is the individual's unused tuition and education tax credits at the end of the preceding taxation year,
B is the total of all amounts each of which may be deducted under section 4.6 [tuition credit] or 4.61 [education tax credit] in computing the individual's tax payable under this Act for the year,
C is the smaller of the value of B and the amount that would be the individual's tax payable under this Act for the year if no amount were deductible under any of sections 4.4 [charitable and other gifts], 4.5 [medical expense credit], 4.6 [tuition credit], 4.61 [education tax credit], 4.63 [credit for interest on student loan], 4.65 [transfer of unused credits to spouse], 4.67 [transfer of unused credits to parent or grandparent] and 4.69 [dividend tax credit],
D is the amount that the individual may deduct under subsection (1) for the year, and
E is the tuition and education tax credits transferred for the year by the individual to the individual's spouse, parent or grandparent.
(3) If an individual was not resident in British Columbia on the last day of the preceding taxation year, the individual's unused tuition and education tax credits at the end of that year are deemed to equal the amount that would be the individual's unused tuition and education tax credits at the end of that year under section 118.61 of the federal Act if the percentage applied under sections 118.5 and 118.6 of that Act in computing the individual's tuition and education tax credits had, at all material times, been 8.4% instead of the appropriate percentage as defined in that Act.
(4) For the purposes of this section and sections 4.65 [transfer of unused credits to spouse] and 4.67 [transfer of unused credits to parent or grandparent], an individual's unused tuition and education tax credits at the end of the 1999 taxation year are deemed to equal the amount that would be the individual's unused tuition and education tax credits at the end of that year under section 118.61 of the federal Act if the percentage applied under sections 118.5 and 118.6 of that Act in computing the individual's tuition and education tax credits had, at all material times, been 8.4% instead of the appropriate percentage as defined in that Act.
4.63 For the purpose of computing the tax payable under this Act for a taxation year by an individual who is entitled to a deduction under section 118.62 of the federal Act for the year, there may be deducted an amount determined by the formula
A x B
where
A is the appropriate percentage for the year, and
B is the amount used in the formula in section 118.62 of the federal Act in computing the individual's deduction under that section for the year.
4.64 Section 118.7 of the federal Act applies for the purposes of this Act except that a reference in that section to the appropriate percentage for the year is to be read as the appropriate percentage for the year as defined in section 4 (1) of this Act.
4.65 For the purpose of computing the tax payable under this Act for a taxation year by an individual who is entitled to a deduction under section 118.8 of the federal Act for the year, there may be deducted an amount determined by the formula
A + B - C
where
A is the tuition and education tax credits transferred for the year by the individual's spouse to the individual,
B is the total of all amounts each of which is deductible under section 4.31 [age credit], 4.32 [pension credit] or 4.51 [credit for mental or physical impairment] in computing the tax payable by the spouse under this Act for the year or that would be so deductible if the spouse were liable under section 2 to pay tax for the year, and
C is the amount, if any, by which
(a) the amount that would be the tax payable if the spouse were liable for tax under section 2 for the year and if the only amounts deductible were the amounts under sections 4.3 (1) (c) [basic personal credit - single status], 4.62 [unused tuition and education tax credits] and 4.64 [credit for EI premium and CPP contribution]
exceeds
(b) the smaller of
(i) the total of all amounts that may be deducted under section 4.6 [tuition credit] or 4.61 [education tax credit] in computing the tax payable by the spouse under this Act for the year or that would be so deductible if the spouse were liable under section 2 to pay tax for the year, and
(ii) the amount that would be the tax payable by the spouse under this Act for the year if the spouse were liable under section 2 to pay tax for the year and if the only amounts deductible were the amounts under sections 4.3 [personal credits], 4.31 [age credit], 4.32 [pension credit], 4.51 [credit for mental or physical impairment], 4.62 [unused tuition and education tax credits] and 4.64 [credit for EI premium and CPP contribution].
4.66 In sections 4.65 [transfer of unused credits to spouse] and 4.67 [transfer of unused credits to parent or grandparent], the tuition and education tax credits transferred for a taxation year by a person to an individual is the smaller of
(a) the amount determined by the formula
A - B
where
A is the smaller of
(i) the total of all amounts that may be deducted under section 4.6 [tuition credit] or 4.61 [education tax credit] in computing the person's tax payable under this Act for the year or that would be so deductible if the person were liable under section 2 to pay tax for the year, and
(ii) $420, and
B is the amount that would be the person's tax payable under this Act for the year if the person were liable under section 2 to pay tax for the year and if the only amounts deductible were the amounts under sections 4.3 [personal credits], 4.31 [age credit], 4.32 [pension credit], 4.51 [credit for mental or physical impairment], 4.62 [unused tuition and education tax credits] and 4.64 [credit for EI premium and CPP contribution], and
(b) the amount for the year that the person designates in writing for the purposes of section 4.65 [transfer of unused credits to spouse] or 4.67 [transfer of unused credits to parent or grandparent].
4.67 (1) This section applies if
(a) for a taxation year a parent or grandparent of an individual is the only person designated in writing by the individual for the year for the purpose of this section, and
(b) no other person is designated for the year for the purpose of section 118.9 of the federal Act or a provision of an income tax statute of an agreeing or non-agreeing province that is similar to this section.
(2) In the circumstances described in subsection (1), there may be deducted in computing the tax payable under this Act for the taxation year by the individual's parent or grandparent, as the case may be, the tuition and education tax credits transferred for the year by the individual to the parent or grandparent, as the case may be.
(3) No deduction may be made under this section in computing the tax payable by a parent or grandparent of an individual for a taxation year if the individual's spouse deducts an amount for the year in respect of the individual under
(a) section 4.3 [personal credits] or 4.65 [transfer of unused credits to spouse], or
(b) a provision of an income tax statute of an agreeing or non-agreeing province that is similar to section 4.3 or 4.65 of this Act.
4.68 For the purpose of computing the tax payable under this Act for a taxation year by an individual who is entitled to a deduction under section 120.2 of the federal Act for the year, there may be deducted 49.5% of the amount deducted by the individual under that section of the federal Act for the year.
4.69 For the purpose of computing the tax payable under this Act for a taxation year by an individual, there may be deducted 33% of any amount that is required by section 82 (1) (b) of the federal Act to be included in computing the individual's income for the year under that Act.
4.7 For the purpose of computing the tax payable under this Act for a taxation year by an individual who is entitled to a deduction under section 122.3 of the federal Act for the year, there may be deducted 49.5% of the amount deductible by the individual under that section of the federal Act for the year.
4.71 (1) For the purpose of computing the tax payable under this Act for a taxation year by an individual, there may be deducted the amount determined under subsection (2) if the individual
(a) resided in British Columbia on the last day of the taxation year, and
(b) had income for the year that included income earned in a country other than Canada in respect of which non-business-income tax was paid by the individual to the government of a country other than Canada.
(2) The amount deductible under subsection (1) is the smaller of
(a) the amount, if any, by which any non-business-income tax paid by the individual for the taxation year to the government of the other country exceeds the aggregate of all amounts each of which is an amount claimed by the individual as a deduction for that year under section 126 (1) or 180.1 (1.1) of the federal Act, and
(b) that proportion of the tax otherwise payable under this Act for that taxation year that
(i) the aggregate of the individual's incomes from sources in that country, excluding any portion of the incomes that was deductible by the individual under section 110 (1) (f) (i) of the federal Act or in respect of which an amount was deductible by the individual under section 110.6 of the federal Act
(A) for that year, if section 114 of the federal Act does not apply, or
(B) for the part of the year throughout which the individual was resident in Canada, if section 114 of that Act applies,
on the assumption that
(C) no businesses were carried on by the individual in that country,
(D) no amount was deducted under section 91 (5) of the federal Act in computing the individual's income for the year, and
(E) the individual's income from employment in that country for the year was not from a source in that country to the extent of the smaller of the amounts determined in respect of the individual's income under paragraphs (c) and (d) of section 122.3 (1) of the federal Act,
is of
(ii) the individual's income earned in British Columbia
(A) in the year, if section 114 of the federal Act does not apply, or
(B) in the part of the year throughout which the individual was resident in Canada, if section 114 of that Act applies,
minus any amounts deducted by the individual under section 110.6 or 111 (1) (b) of the federal Act or deductible by the individual under section 110 (1) (d), (d.1), (d.2), (d.3), (f) or (j) of the federal Act for the year or in respect of the part of the year referred to in clause (B) of this subparagraph, as the case may be.
(3) For the purposes of subsection (2) (b) (ii) (A) of this section, if section 114 of the federal Act does not apply to the individual in respect of the taxation year, the individual's income is to be computed without reference to the proposed section 20 (1) (ww) of the federal Act.
(4) Subsection (3) of this section applies only if the proposed section 126 (1) (b) (ii) (A) (I) of the federal Act, as contained in section 35 (1) of the Income Tax Amendments Act, 1999 (Canada), is enacted, with or without amendments, by the Parliament of Canada.
(5) Under this section and section 14 (3) (b), the non-business-income tax paid by a taxpayer to the government of a country other than Canada in respect of the taxpayer's income for a year is the non-business-income tax paid by the taxpayer to the government of that country in respect of that year as determined under the definition of "non-business-income tax" in section 126 (7) of the federal Act.
4.72 For the purpose of computing the tax payable under this Act for the 2000 taxation year by an individual who is resident in British Columbia on the last day of that taxation year, there may be deducted the amount determined by the formula
A x B
where
A is the appropriate percentage for the year, and
B is
(a) $600, if the individual deducts an amount in respect of a dependent spouse or other dependant under section 118 (1) (a) or (b) of the federal Act, or
(b) $300, in any other case.
4.73 No deduction may be made under section 4.3 [personal credits], 4.31 [age credit], 4.32 [pension credit] or 4.72 [supplementary credit for 2000 taxation year] in computing the tax payable by a trust for a taxation year.
4.74 Despite sections 4.3 to 4.65 and 4.67, for the purpose of computing an individual's tax payable under this Act for a taxation year that ends in a calendar year in which the individual becomes bankrupt, the individual is allowed only
(a) the deductions the individual is entitled to under sections 4.32 [pension credit], 4.4 [charitable and other gifts], 4.5 [medical expense credit], 4.6 [tuition credit], 4.61 [education tax credit], 4.63 [credit for interest on student loan] and 4.64 [credit for EI premium and CPP contribution] that can reasonably be considered wholly applicable to the taxation year, and
(b) the part of the deductions the individual is entitled to under sections 4.3 [personal credits], 4.31 [age credit], 4.51 [credit for mental or physical impairment], 4.65 [transfer of unused credits to spouse], 4.67 [transfer of unused credits to parent or grandparent] and 4.72 [supplementary credit for 2000 taxation year] that can reasonably be considered applicable to the taxation year,
except that the total of the amounts so deductible for all taxation years of the individual in the calendar year under any of those provisions must not exceed the amount that would have been deductible under that provision in respect of the calendar year had the individual not become bankrupt.
4.75 (1) Despite sections 4.3 to 4.65 and 4.67 to 4.7, for the purpose of computing tax payable under this Act for a taxation year by an individual who was resident in British Columbia on the last day of the taxation year and had income earned in the year outside British Columbia, the amount that may be deducted under those provisions must not exceed the portion of that amount determined by the formula
| A | x | (B - C) |
|
|
||
| B |
where
A is the total of the amounts the individual may deduct under those sections read without reference to this section,
B is the individual's income for the year, and
C is the individual's income earned in the taxation year outside British Columbia.
(2) Despite sections 4.3 to 4.65 and 4.67 to 4.7, for the purpose of computing tax payable under this Act for a taxation year by an individual who was not resident in British Columbia on the last day of the taxation year but had income earned in the year in British Columbia, the amount that may be deducted under those provisions must not exceed the portion of that amount determined by the formula
| A | x | B |
|
|
||
| C |
where
A is the total of the amounts the individual may deduct under those sections,
B is the individual's income earned in the taxation year in British Columbia, and
C is the individual's income for the year.
4.76 (1) Despite sections 4.3 to 4.65 and 4.67 but subject to subsection (2) of this section, if an individual is resident in Canada throughout part of a taxation year and throughout another part of the year is non-resident, for the purpose of computing the individual's tax payable under this Act for the year,
(a) the amount deductible for the year under each provision of those sections in respect of the part of the year that is not included in the period or periods referred to in paragraph (b) must be computed as though that part of the year were the whole taxation year, and
(b) the individual is allowed only
(i) the deductions permitted under sections 4.32 [pension credit], 4.4 [charitable and other gifts], 4.5 [medical expense credit], 4.6 [tuition credit], 4.61 [education tax credit], 4.63 [credit for interest on student loan] and 4.64 [credit for EI premium and CPP contribution] that can reasonably be considered wholly applicable, and
(ii) the part of the deductions permitted under sections 4.3 [personal credits], 4.31 [age credit], 4.51 [credit for mental or physical impairment], 4.65 [transfer of unused credits to spouse] and 4.67 [transfer of unused credits to parent or grandparent] that can reasonably be considered applicable
to the period or periods in the year throughout which the individual was resident in Canada, computed as though that period or those periods were the whole taxation year.
(2) The amount deductible for the year under each provision referred to in subsection (1) (b) (i) and (ii) must not exceed the amount that would have been deductible under that provision had the individual been resident in Canada throughout the year.
4.77 The following provisions of this Act do not apply for the purpose of computing the tax payable under this Act for a taxation year by an individual who at no time in the taxation year is resident in Canada unless all or substantially all of the individual's income for the year is included in computing the individual's taxable income for the year earned in Canada:
(a) section 4.3 [personal credits];
(b) section 4.31 [age credit];
(c) section 4.32 [pension credit];
(d) section 4.5 [medical expense credit];
(e) section 4.51 (2), (4) and (6) [credit for dependant with impairment and partial dependency rules];
(f) section 4.61 [education tax credit];
(g) section 4.65 [transfer of unused credits to spouse];
(h) section 4.67 [transfer of unused credits to parent or grandparent];
(i) section 4.72 [supplementary credit for 2000 taxation year].
4.78 (1) This section applies if
(a) a separate return of income with respect to an individual is filed in accordance with section 70 (2), 104 (23) or 150 (4) of the federal Act for a particular period, and
(b) another return of income with respect to the individual is filed under this Act for a period ending in the calendar year in which the particular period ends.
(2) For the purpose of computing the tax payable under this Act by an individual in a return referred to in subsection (1) (a), the only deductions allowed are those under the following provisions:
(a) section 4.3 [personal credits];
(b) section 4.31 [age credit];
(c) section 4.32 [pension credit];
(d) section 4.4 [charitable and other gifts];
(e) section 4.5 [medical expense credit];
(f) section 4.51 [credit for mental or physical impairment];
(g) section 4.6 [tuition credit];
(h) section 4.61 [education tax credit];
(i) section 4.62 [unused tuition and education tax credits];
(j) section 4.63 [credit for interest on student loan];
(k) section 4.64 [credit for EI premium and CPP contribution];
(l) section 4.67 [transfer of unused credits to parent or grandparent];
(m) section 4.72 [supplementary credit for 2000 taxation year].
(3) The total of all deductions claimed under sections 4.32 to 4.64 and 4.67 of this Act in the returns referred to in subsection (1) (a) and (b) filed in respect of the individual must not exceed the total that could be deducted under those provisions for the year with respect to the individual if no separate returns were filed under sections 70 (2), 104 (23) and 150 (4) of the federal Act.
4.79 (1) For the purposes of section 4.2 (1), the following provisions must be applied in the following order:
(a) section 4.3 [personal credits];
(b) section 4.31 [age credit];
(c) section 4.64 [credit for EI premium and CPP contribution];
(d) section 4.32 [pension credit];
(e) section 4.51 [credit for mental or physical impairment];
(f) section 4.62 [unused tuition and education tax credits];
(g) section 4.6 [tuition credit];
(h) section 4.61 [education tax credit];
(i) section 4.67 [transfer of unused credits to parent or grandparent];
(j) section 4.65 [transfer of unused credits to spouse];
(k) section 4.5 [medical expense credit];
(l) section 4.4 [charitable and other gifts];
(m) section 4.63 [credit for interest on student loan];
(n) section 4.69 [dividend tax credit];
(o) section 4.7 [overseas employment tax credit].
(2) For the purposes of section 4.2 (2), the following provisions must be applied in the following order:
(a) section 4.68 [minimum tax credit];
(b) section 4.71 [foreign tax credit].
(3) For the purposes of section 4.2 (3), the following provisions must be applied in the following order:
(a) section 4.72 [supplementary credit for 2000 taxation year];
(b) section 19.1 [logging tax deduction];
(c) section 19 (2) [royalty deduction];
(d) section 19 (7) [Nisga'a royalty deduction];
(e) section 20 [political contributions];
(f) section 13.1 [net employee investment tax credit];
(g) section 21 [small business venture capital tax credit].
4.8 Subject to section 4.85 [apportionment of additional taxes], if tax is payable by an individual under section 127.5 of the federal Act for a taxation year, there must be added in computing the individual's tax payable under this Act for the year 49.5% of the amount that would be determined under section 120.2 (3) of the federal Act if that section were read without reference to paragraph (c) of that section.
4.81 Subject to section 4.85 [apportionment of additional taxes], there must be added in computing an individual's tax payable under this Act for a taxation year 49.5% of the amount, if any, added under section 120.3 of the federal Act in computing the individual's tax payable under that Act for the year.
4.82 (1) This section applies only if the proposed section 120.31 of the federal Act, as contained in section 30 of the Income Tax Amendments Act, 1999 (Canada), is enacted, with or without amendments, by the Parliament of Canada.
(2) Subject to section 4.85 [apportionment of additional taxes], there must be added in computing an individual's tax payable under this Act for a taxation year 49.5% of the amount, if any, added under the proposed section 120.31 of the federal Act in computing the individual's tax payable under that Act for the year.
4.83 Subject to section 4.85 [apportionment of additional taxes], there must be added in computing an individual's tax payable under this Act for a taxation year 49.5% of the amount, if any, of the tax payable under section 40 of the Income Tax Application Rules (Canada) by the individual for the year.
4.84 (1) This section applies only if the proposed section 120.4 of the federal Act as contained in section 30 of the Income Tax Amendments Act, 1999 (Canada), is enacted, with or without amendments, by the Parliament of Canada.
(2) Subject to section 4.85 [apportionment of additional taxes], there must be added to a specified individual's tax payable under this Act for a taxation year an amount that is determined by multiplying the individual's split income for the year by the highest percentage specified in section 4.1 that applies in determining tax that might be payable under this Act for the year.
(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 the proposed section 120.4 (2) of the federal Act,
(b) the reference in the proposed section 120.4 (3) (a) (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 the proposed section 120.4 (3) (a) (i) of the federal Act to section 126 of that Act must be read as a reference to section 4.71 of this Act [foreign tax credit].
4.85 (1) In the case of an individual who was resident in British Columbia on the last day of a taxation year and had income earned in the taxation year outside British Columbia, the tax that must be added under any of sections 4.8 to 4.84 in computing the individual's tax payable under this Act for the year is the amount determined by the formula
| A | x | (B - C) |
|
|
||
| B |
where
A is the amount determined for the individual under section 4.8, 4.81, 4.82, 4.83 or 4.84, as the case may be,
B is the individual's income for the year, and
C is the individual's income earned in the taxation year outside British Columbia.
(2) In the case of an individual who was not resident in British Columbia on the last day of a taxation year and had income earned in the taxation year in British Columbia, the tax that must be added under any of sections 4.8 to 4.84 in computing the individual's tax payable under this Act for the year is the amount determined by the formula
| A | x | B |
|
|
||
| C |
where
A is the amount determined for the individual under section 4.8, 4.81, 4.82, 4.83 or 4.84, as the case may be,
B is the individual's income earned in the taxation year in British Columbia, and
C is the individual's income for the year.
4.86 (1) In this section, "net tax" means the amount by which
(a) the total of the amounts determined under sections 4.1 [amount of tax payable for 2000 taxation year], 4.8 [minimum tax], 4.81 [CPP/QPP disability benefits for previous years], 4.82 [qualifying retroactive lump sum pension payments], 4.83 [lump sum pension payment] and 4.84 [tax on split income]
exceeds
(b) the total of all amounts deducted under this Division other than an amount deducted under subsection (3) of this section or under section 4.72 [supplementary credit for 2000 taxation year] or 13.1 [net employee investment tax credit].
(2) The tax payable for a taxation year by an individual must be increased by
(a) 30% of the amount by which the net tax exceeds $5 300, and
(b) 15% of the amount by which the net tax exceeds $8 660 before the tax payable under paragraph (a) is added.
(3) An individual who
(a) claims an amount in respect of a dependent spouse or other dependant under section 118 (1) (a), (b) or (d) of the federal Act,
(b) is on the last day of the taxation year an eligible individual within the meaning of section 122.6 of the federal Act in relation to a qualified dependant within the meaning of that section who is not a person referred to in paragraph (a) of this subsection, or
(c) is on the last day of the taxation year the cohabiting spouse, within the meaning of section 122.6 of the federal Act, of an individual who comes within the meaning of paragraph (b) of this subsection,
may deduct from the amount of the increase in tax referred to in subsection (2) the smaller of
(d) the amount of the increase referred to in subsection (2), and
(e) an amount equal to $50 for each dependant referred to in paragraph (a) of this subsection in respect of whom a claim was made and for each qualified dependant referred to in paragraph (b).
(4) For any taxation year, only one deduction may be made under this section in respect of a person, either as a dependant referred to in subsection (3) (a) or as a qualified dependant referred to in subsection (3) (b).
4.87 Section 128 (2) of the federal Act applies for the purposes of this Act except that, in addition to any other necessary modifications required for this Act, that section is to be read as if, in addition to the deductions referred to in clauses (A) to (C) of paragraph (e) (iii), that paragraph included a reference to the deduction under section 4.72 of this Act [supplementary credit for 2000 taxation year].
6 Sections 5 to 7 are repealed.
7 Section 8 (3) is amended by striking out "for the 1993 and subsequent taxation years" and substituting "for a taxation year".
8 Section 9 is amended
(a) in subsection (1) by striking out "cohabiting spouse" wherever it appears and substituting "cohabiting spouse or common-law partner", and
(b) by repealing subsection (2).
9 Sections 10 (1) (b) and 11 (2) are amended by striking out "cohabiting spouse" wherever it appears and substituting "cohabiting spouse or common-law partner".
10 Section 11 is amended
(a) in subsection (3) by repealing paragraph (a) and substituting the following:
(a) before the end of a particular month an eligible individual in respect of a qualified dependant begins to live separate and apart from the individual's cohabiting spouse or common-law partner, because of a breakdown of their marriage or common-law partnership, for a period of at least 90 days that includes a day in the particular month, and , and
(b) in subsection (4) by striking out "cohabiting spouse" and substituting "cohabiting spouse or common-law partner".
11 The following sections are added:
13.1 (1) In this section:
"net employee investment tax credit" means, in relation to an individual's taxation year, the aggregate of the tax credit amounts shown on all tax credit certificates issued to an individual for share purchases made during the taxation year or within 60 days after the end of the taxation year, minus the portion of that aggregate amount that was deducted from the individual's tax otherwise payable under this Act for the immediately preceding taxation year;
"tax credit certificate" means a tax credit certificate issued by the administrator under section 7 or 24 of the Employee Investment Act.
(2) There may be deducted from the tax payable by an individual under this Act in respect of a taxation year the smaller of
(a) the individual's net employee investment tax credit for that taxation year, or any smaller amount that the individual elects to deduct, and
(b) $2 000.
(3) An individual who is entitled to a deduction under this section must file, with the individual's annual return for any taxation year in respect of which a deduction is claimed under this section, a copy of the tax credit certificate.
(4) An individual is not entitled to a deduction under this section unless the individual files a return under section 29 within 3 years after the end of the taxation year to which the deduction pertains.
13.2 (1) A mutual fund trust that is entitled to a refund under section 132 of the federal Act for a taxation year is entitled to receive, at the time and in the manner provided in section 132 of the federal Act for a refund under that section, a capital gains refund for the taxation year equal to,
(a) if the trust had no income earned in the taxation year outside British Columbia, that proportion of the refund for the year calculated under section 132 of the federal Act that
(i) the highest percentage specified in section 4.1 (1) of this Act that applies in determining tax that might be payable under this Act for the year
is of
(ii) the highest percentage specified in section 117 of the federal Act that applies in determining tax that might be payable under the federal Act for the year, or
(b) if the trust had income earned in the taxation year outside British Columbia, that proportion of the amount that would be determined under paragraph (a) of this subsection, if all income earned in the taxation year by the trust had been earned in British Columbia, that the income earned by it in British Columbia is of its income for the year.
(2) A mutual fund trust that
(a) is entitled to a capital gains refund under subsection (1) for a taxation year, and
(b) has paid or is liable to pay surtax for the taxation year
is entitled to receive an additional refund for the taxation year equal to the amount by which the surtax would be reduced, if the refund for the taxation year under subsection (1) were deducted from the tax on which the surtax was computed.
(3) If a mutual fund trust is entitled to a capital gains refund under subsection (1) and is liable or about to become liable to make a payment under this Act, the minister may
(a) apply all or part of the amount that would otherwise be refunded under subsection (1), and under subsection (2) if applicable, to the liability, and
(b) pay to the trust the balance, if any, of the refund not so applied.
(4) The minister must notify the mutual fund trust of an amount applied under subsection (3) to its liability to make a payment under this Act.
12 The following heading is added before section 14:
Division 3 — Corporate Income Tax .
13 Section 14 is amended
(a) by repealing subsection (2) and substituting the following:
(2) The tax payable by a corporation under this Act is 16.5% of the corporation's taxable income earned in the year in British Columbia. , and
(b) by repealing subsection (4).
14 The following section is added:
14.1 (1) If during the taxation year of a corporation there is a change in the rate of tax payable under this Act by the corporation, the corporation must compute its tax payable for that taxation year in accordance with the following:
(a) by treating the taxation year as 2 notional taxation years, the first ending on the last day before the change applied and the second beginning on the first day that the change applied;
(b) by apportioning the amount taxable between the 2 notional taxation years proportionally according to the number of days in each;
(c) by computing
(i) tax on the first notional taxation year in accordance with the tax applicable before the change applied, and
(ii) tax on the second notional taxation year in accordance with the tax applicable after the change applied;
(d) by adding the amounts determined under paragraph (c) (i) and (ii).
(2) The total amount determined under subsection (1) (d) is the tax payable by the corporation in respect of the taxation year.
15 Section 15 is repealed.
16 Section 16 (3) is repealed.
17 The following section is added:
18.1 In computing a corporation's tax payable under this Act, the following provisions must be applied in the following order:
(a) section 14 (3) [foreign tax deduction];
(b) section 19.1 [logging tax deduction];
(c) section 19 (2) [royalty deduction];
(d) section 19 (7) [Nisga'a royalty deduction];
(e) section 20 [political contributions];
(f) section 21 [small business venture capital tax credit];
(g) section 25 [mining reclamation trust tax credit];
(h) section 99 [scientific research and experimental development tax credit].
18 The following heading is added before section 19:
Division 4 — Individual and Corporate Income Tax .
19 Section 19 (1) is amended
(a) in the definition of "notional tax" by striking out ", but for section 120.1 of the federal Act,", and
(b) by repealing the definition of "tax otherwise payable".
20 The following section is added:
19.1 (1) In this section, "logging tax" means the tax imposed in respect of income derived from logging operations for the year in British Columbia under the Logging Tax Act.
(2) There must be deducted from the tax payable by a taxpayer under this Act for a taxation year an amount equal to 1/3 of the logging tax payable and paid by the taxpayer.
21 Sections 20 (1) and 21 (1) are amended by repealing the definition of "tax otherwise payable".
22 Sections 22 to 24, 26 and 28 are repealed.
23 The following heading is added before section 29:
Division 5 — Returns, Assessments and Appeals .
24 Section 29 is repealed and the following substituted:
29 Sections 150, 150.1 (1) to (4), 151 and 152 (1), (1.2) and (2) to (8) of the federal Act apply for the purposes of this Act.
25 Section 31 is repealed and the following substituted:
31 Section 155 of the federal Act applies for the purposes of this Act.
26 Section 32 is repealed and the following substituted:
32 (1) Section 156 of the federal Act applies for the purposes of this Act.
(2) If, because of section 156.1 (2) or (3) of the federal Act, no installment is required to be made under section 155 or 156 of that Act by an individual for a particular taxation year, the requirements for payment of installments under subsection (1) of this section and section 31 of this Act do not apply to the individual for that year.
27 Section 34 is amended by striking out "Sections 70 (2), 104 (2) and (23) (e)," and substituting "Sections 70 (2), 104 (2) and (23) (e), 156.1 (4),".
28 Section 42 is amended
(a) in subsection (2) by striking out "An appeal from an assessment" and substituting "Subject to subsection (2.1), an appeal from an assessment",
(b) in subsection (2) (a) by adding "or" at the end of subparagraph (iii.1) and by striking out "or" at the end of subparagraph (iv),
(c) by repealing subsection (2) (a) (v),
(d) in subsection (2) (b) by adding "or" at the end of subparagraph (i) and by repealing subparagraph (ii),
(e) in subsection (2) (c) by repealing subparagraph (i) and by adding the following subparagraphs:
(i.1) the amount of tax payable for a taxation year by the taxpayer under this Act,
(i.2) the amount of a deduction from tax payable by a taxpayer under this Act, or ,
(f) in subsection (2) by striking out everything after the end of paragraph (c), and
(g) by adding the following subsection:
(2.1) No appeal from an assessment under this Act lies in respect of
(a) the computation of taxable income, or
(b) any other matter in respect of which an appeal lies under the federal Act.
29 Section 56 (1) is repealed and the following substituted:
(1) Sections 153 (1) to (3) and 227 (1) to (5.2), (8), (8.2) to (9), (9.2), (9.4), (9.5), (10.2), (11) to (13) and (15) of the federal Act apply for the purposes of this Act.
30 Section 61 (3) is amended by striking out "section 227 (8), (8.5), (9) or (9.5) of the federal Act," and substituting "section 227 (8), (9) or (9.5) of the federal Act,".
31 Section 68 (5) is repealed and the following substituted:
(5) A certificate signed by the Provincial minister stating the amount of
(a) a taxpayer's income for the year as defined in section 4 (1), or
(b) a taxpayer's taxable income
is evidence of the amount of the taxpayer's income for the year or taxable income, as the case may be.
Related Amendments
32 Section 4 (1) of the Income Tax Act, as enacted by section 5 of this Act, is amended by repealing the definition of "surtax".
33 Section 4.1 is amended
(a) by repealing subsections (1) and (2) and substituting the following:
(1) Subject to subsections (2), (3), (5) and (6) of this section and to sections 4.52 and 4.8 to 4.84, the tax payable under this Act by an individual on the individual's taxable income for the 2001 and subsequent taxation years is as follows:
(a) if the taxable income does not exceed $30 004, 8.4% of the taxable income;
(b) if the taxable income exceeds $30 004 and does not exceed $60 009,
(i) the highest amount that might be determined for an individual under paragraph (a) of this subsection,
plus
(ii) 11.9% of the taxable income that exceeds $30 004 and does not exceed $60 009;
(c) if the taxable income exceeds $60 009 and does not exceed $70 000,
(i) the highest amount that might be determined for an individual under paragraph (b) of this subsection,
plus
(ii) 16.7% of the taxable income that exceeds $60 009 and does not exceed $70 000;
(d) if the taxable income exceeds $70 000 and does not exceed $85 000,
(i) the highest amount that might be determined for an individual under paragraph (c) of this subsection,
plus
(ii) 18.7% of the taxable income that exceeds $70 000 and does not exceed $85 000;
(e) if the taxable income exceeds $85 000,
(i) the highest amount that might be determined for an individual under paragraph (d) of this subsection,
plus
(ii) 19.7% of the taxable income that exceeds $85 000.
(2) For the purposes of subsection (1) (b) (i), (c) (i), (d) (i) and (e) (i), the highest amount that might be determined for an individual under subsection (1) (a), (b), (c) or (d), as the case may be, must be rounded to the nearest multiple of one dollar or, if the highest amount is equidistant from 2 such consecutive multiples, to the higher multiple. , and
(b) in subsection (3) by striking out "sections 4.8 to 4.84 and 4.86," and substituting "sections 4.52 and 4.8 to 4.84,".
34 Section 4.2 (3) is amended by repealing paragraph (a) and by striking out "plus".
35 Section 4.3 (1) is amended
(a) by striking out "$7 231", "$6 140" and "$614" wherever they appear and substituting "$8 000", "$6 850" and "$685" respectively,
(b) by striking out "spouse" wherever it appears and substituting "spouse or common-law partner", and
(c) by striking out "a breakdown of their marriage, the spouse's income while married and not so separated," and substituting "a breakdown of their marriage or common-law partnership, the spouse's or common-law partner's income while married or in a common-law partnership and not so separated,".
36 Section 4.5 is amended
(a) by striking out "the individual's spouse)" and substituting "the individual's spouse or common-law partner)", and
(b) by striking out "$7 231." and substituting "$8 000."
37 The following section is added:
4.52 (1) In subsection (2) of this section, "relevant provision" means section 4.1 (1) [amount of tax payable], 4.3 (1) [personal credits], 4.31 [age credit], 4.5 [medical expense credit] or 4.51 [credit for mental or physical impairment].
(2) For the purpose of computing the tax payable by an individual for a taxation year, other than the 2001 taxation year, each amount expressed in dollars in a relevant provision is to be adjusted so that the amount to be used under the relevant provision for the year is the total of
(a) the amount that would, but for subsection (5) of this section, be the amount to be used under the relevant provision for the immediately preceding taxation year, and
(b) the product obtained by multiplying
(i) the amount referred to in paragraph (a) of this subsection
by
(ii) the amount, adjusted in the manner that may be prescribed and rounded to the nearest one-thousandth, or, if the result obtained is equidistant from 2 consecutive one-thousandths, to the higher one-thousandth, that is determined by the formula
| A | – | 1 |
|
|
||
| B |
where
A is the Consumer Price Index for British Columbia for the 12-month period that ended on the last September 30 before that year, and
B is the Consumer Price Index for British Columbia for the 12-month period immediately preceding the period mentioned in the description of A.
(3) In subsection (4), "specified amount" means
(a) the amount of $30 004 referred to in section 4.1 (1) (a) and (b),
(b) the amount of $60 009 referred to in section 4.1 (1) (b) and (c),
(c) the amount of $14 047 referred to in section 4.3 (1) (d),
(d) the amount of $11 661 referred to in section 4.3 (1) (d),
(e) the amount of $2 386 referred to in section 4.3 (1) (e),
(f) the amount of $3 531 referred to in section 4.31,
(g) the amount of $26 284 referred to in section 4.31,
(h) the amount of $1 637 referred to in section 4.5,
(i) the amount of $4 293 referred to in section 4.51 (1),
(j) the amount of $2 941 referred to in section 4.51 (3), and
(k) the amount of $2 000 referred to in section 4.51 (3).
(4) For the purpose of computing the tax payable by an individual for the 2001 taxation year, each specified amount is to be adjusted so that the amount to be used for the year is the specified amount plus the product obtained by multiplying
(a) the specified amount
by
(b) the amount, adjusted and rounded as described in subsection (2) (b) (ii), that is determined by applying the formula in that subsection.
(5) If an amount to which subsection (2) or (4) applies is not a multiple of one dollar when adjusted as provided in this section, it must be rounded to the nearest multiple of one dollar or, if it is equidistant from 2 such consecutive multiples, to the higher multiple.
(6) If the amount determined by applying the formula in subsection (2) (b) (ii) would, but for this subsection, be a negative amount, that amount is deemed to be nil.
(7) In this section, the Consumer Price Index for British Columbia for any 12 month period is the result arrived at by
(a) aggregating the Consumer Price Index for British Columbia, as published by Statistics Canada under the authority of the Statistics Act (Canada), adjusted in the manner that may be prescribed, for each month in that period,
(b) dividing the aggregate obtained under paragraph (a) by 12, and
(c) rounding the result obtained under paragraph (b) to the nearest one-thousandth or, if the result obtained is equidistant from 2 consecutive one-thousandths, to the higher one thousandth.
38 Section 4.62 (2) is amended by striking out "the individual's spouse," and substituting "the individual's spouse, common-law partner,".
39 Sections 4.65 and 4.67 (3) are amended by striking out "spouse" wherever it appears and substituting "spouse or common-law partner".
40 Section 4.86 (3) is amended
(a) in paragraph (a) by striking out "dependent spouse" and substituting "dependent spouse, dependent common-law partner", and
(b) in paragraph (c) by striking out "cohabiting spouse," and substituting "cohabiting spouse or common-law partner,".
41 Section 4.86 is amended
(a) by repealing subsections (1), (2) and (4), and
(b) by repealing subsection (3).
42 Section 13.2 is amended
(a) by repealing subsection (2), and
(b) in subsection (3) (a) by striking out ", and under subsection (2) if applicable,".
Consequential Amendment
Employee Investment Act
43 Sections 7 (1), (2), (3) (c) and (f), 16 (1), 23 (6), 24, 30 (2) and 31 (2) of the Employee Investment Act, R.S.B.C. 1996, c. 112, are amended by striking out "section 24 of the Income Tax Act" wherever it appears and substituting "section 13.1 of the Income Tax Act".
Application Provisions, Transitional Provisions and Commencement
44 Sections 8 (a), 9, 10, 35 (b) and (c), 36 (a), 38 to 40 of this Act apply to the 2001 and subsequent taxation years, but only if the proposed sections 130 to 142 of the Modernization of Benefits and Obligations Act (Canada) are enacted, with or without amendments, by the Parliament of Canada.
45 (1) If the proposed 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, sections 8 (a), 9, 10, 35 (b) and (c), 36 (a) and 38 to 40 of this Act apply to the taxpayer and that person in respect of the 2000 and subsequent taxation years.
(2) If the proposed 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, sections 8 (a), 9, 10 and 40 of this Act apply to the taxpayer and that person in respect of the applicable taxation year.
(3) The proposed section 146 of the Modernization of Benefits and Obligations Act (Canada) applies for the purposes of this section.
46 The amendments made by this Act apply and have effect despite the Tax and Consumer Rate Freeze Act.
47 (1) Sections 1 to 6, 8 (b), 11 to 15, 17 to 31 and 43 are deemed to have come into force on January 1, 2000 and are retroactive to the extent necessary to give them effect on and after that date.
(2) Subject to section 45, sections 8 (a), 9, 10, 32 to 40, 41 (a) and 42 come into force on January 1, 2001.
(3) Section 41 (b) comes into force on January 2, 2001.
Explanatory Notes
SECTION 1: [Income Tax Act, amends section 1]
SECTION 2: [Income Tax Act, adds Division 1 heading] takes the first step in organizing Part 1 of the Act into 5 Divisions.
SECTION 3: [Income Tax Act, repeals section 3] repeals the provision which specifies the order in which certain deductions may be applied by individuals and corporations. The repealed provision is replaced by a new ordering provision for individuals (proposed section 4.79) and one for corporations (proposed section 18.1).
SECTION 4: [Income Tax Act, adds Division 2 heading] adds a Division 2 heading to assist the reader to find provisions that apply only to individuals.
SECTION 5: [Income Tax Act, re-enacts section 4 and enacts sections 4.1 to 4.87] establishes a new method for determining individual income tax based on taxable income instead of federal tax. The new method will apply to the 2000 and subsequent taxation years. The key provisions
SECTION 6: [Income Tax Act, repeals sections 5 to 7] removes a surtax provision which applied only to past taxation years and removes 2 other provisions which, as part of the reorganization of the Act, are being re-enacted as sections 4.86 (surtax for the 2000 taxation year) and 13.2 (refunds to mutual fund trusts).
SECTION 7: [Income Tax Act, amends section 8 (3)] to streamline the Act, removes a reference to 1993.
SECTION 8: [Income Tax Act, amends section 9]
SECTION 9: [Income Tax Act, amends sections 10 and 11] adds references to a common-law partner for consistency with proposed amendments to the federal Act.
SECTION 10: [Income Tax Act, amends section 11] adds references to a common-law partner and a common-law partnership for consistency with proposed amendments to the federal Act.
SECTION 11: [Income Tax Act, enacts sections 13.1 and 13.2] re-positions within the Act the provision respecting the net employee investment tax credit and the provision respecting refunds to mutual fund trusts.
SECTION 12: [Income Tax Act, adds Division 3 heading] adds a Division 3 heading to assist the reader to find provisions that apply only to corporations.
SECTION 13: [Income Tax Act, amends section 14] to streamline the Act, removes the tax rates used to determine corporation income tax for past years.
SECTION 14: [Income Tax Act, enacts section 14.1] re-positions within the Act the corporate straddle provision repealed by section 22.
SECTION 15: [Income Tax Act, repeals section 15] repeals the logging tax credit consequential to the re-positioning of the credit in the proposed section 19.1.
SECTION 16: [Income Tax Act, repeals section 16 (3)] to streamline the Act, removes the small business tax rates used to determine corporation income tax for past years.
SECTION 17: [Income Tax Act, enacts section 18.1] establishes the order in which certain tax credit provisions must be applied to corporations.
SECTION 18: [Income Tax Act, adds Division 4 heading] adds a Division 4 heading to assist the reader to find provisions that apply to both individuals and corporations.
SECTION 19: [Income Tax Act, amends section 19 (1)] is consequential to the determination of individual income tax on the basis of income rather than on the basis of federal tax.
SECTION 20: [Income Tax Act, enacts section 19.1] re-positions within the Act the logging tax credit repealed by section 15 of this Bill.
SECTION 21: [Income Tax Act, amends sections 20 (1) and 21 (1)] is consequential to the determination of individual income tax on the basis of income rather than on the basis of federal tax.
SECTION 22: [Income Tax Act, repeals sections 22, 23, 24, 26 and 28] repeals
SECTION 23: [Income Tax Act, adds Division 5 heading] adds a Division 5 heading to assist the reader to find provisions relating to returns, assessments and appeals.
SECTION 24: [Income Tax Act, re-enacts section 29] to allow for electronic filing of tax returns, expands the list of federal provisions that are incorporated by the Act.
SECTION 25: [Income Tax Act, re-enacts section 31] updates the requirements for farmers and fishers to make installment payments of tax according to federal provisions.
SECTION 26: [Income Tax Act, re-enacts section 32] updates the requirements for other individuals to make installment payments of tax according to federal provisions.
SECTION 27: [Income Tax Act, amends section 34] updates the requirement that individuals must pay their taxes owing at the time payment is due.
SECTION 28: [Income Tax Act, amends section 42] adjusts the section authorizing appeals from assessments of tax. The adjustments are consequential to the proposed provisions requiring individual income tax to be determined on the basis of income rather than on the basis of federal tax.
SECTION 29: [Income Tax Act, repeals and replaces section 56 (1)] makes various federal withholding requirements apply for the purposes of the Act.
SECTION 30: [Income Tax Act, amends section 61 (3)] removes a reference to an obsolete federal provision.
SECTION 31: [Income Tax Act, repeals and replaces section 68 (5)] is consequential to the proposed section 4 and to the amendments requiring individual income tax to be determined on the basis of income instead of on the basis of federal tax.
SECTION 32: [Income Tax Amendment Act, 2000, amends section 4 (1)] repeals the definition of "surtax" in the proposed section 4 (1) consequential to the elimination of the surtax in 2001.
SECTION 33: [Income Tax Amendment Act, 2000, amends section 4.1] establishes the tax rates and corresponding tax brackets that are effective for the 2001 and subsequent taxation years.
SECTION 34: [Income Tax Amendment Act, 2000, amends section 4.2 (3)] repeals the reference to the surtax in the proposed section 4.2 (3) (a) consequential to the elimination of the surtax in 2001.
SECTION 35: [Income Tax Amendment Act, 2000, amends section 4.3 (1)]
SECTION 36: [Income Tax Amendment Act, 2000, amends section 4.5]
SECTION 37: [Income Tax Act, enacts section 4.52] provides for annual increases to amounts used in the determination of tax based on increases in the British Columbia Consumer Price Index. The annual increases will apply to tax bracket thresholds and all dollar amounts used in the calculation of credits that are subject to federal annual adjustments. For 2001, annual increases will not apply to the top 2 tax bracket thresholds and the basic personal, spousal, spousal income threshold, infirm dependant maximum income threshold and medical expense dependant income threshold, as these amounts will be set at a specified amount for the year.
SECTIONS 38 to 40: [Income Tax Amendment Act, 2000, amend sections 4.62 (2), 4.65, 4.67 (3) and 4.86 (3)] add references to a common-law partner for consistency with proposed amendments to the federal Act.
SECTION 41: [Income Tax Amendment Act, 2000, amends section 4.86] repeals the surtax imposed under the proposed 4.86. The surtax reduction provision in section 4.86 (3) is repealed separately to allow for a different effective date for the repeal of this provision. This will enable individuals who elect to be treated as common-law partners for the 2000 taxation year to claim the reduction.
SECTION 42: [Income Tax Amendment Act, 2000, amends section 13.2] is consequential to the repeal of the surtax for the 2001 and subsequent taxation years.
SECTION 43: [Employee Investment Act, amends sections 7, 16, 23, 24, 30 and 31] is consequential to the repeal of section 24 of the Income Tax Act and the re-enactment of section 13.1 of that Act.
SECTION 44: [Application of amendments relating to common-law partners] provides for the application of certain sections of this Bill only if the corresponding federal amendments relating to common-law partners are enacted.
SECTION 45: [Transitional provisions relating to common-law partners] provides for various sections of this Bill 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 46: [Tax and Consumer Rate Freeze Act] clarifies that the proposed amendments apply despite the Tax and Consumer Rate Freeze Act.
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