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1996 Legislative Session: 1st Session, 36th Parliament

FIRST READING

The following electronic version is for informational purposes only.

The printed version remains the official version.

HONOURABLE ANDREW PETTER

MINISTER OF FINANCE AND CORPORATE

RELATIONS AND MINISTER RESPONSIBLE

FOR INTERGOVERNMENTAL AFFAIRS

BILL 6 – 1996

INCOME TAX AMENDMENT ACT (No. 2), 1996

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

Section 4.3 (3) (

c) and (4) (

c) of the Income Tax Act, R.S.B.C. 1979, c. 190, is repealed.

2 The following sections are added:

Definitions for BC Family Bonus

4.4

(1) In

section 4.5, "adjusted income" ,

"base taxation year" , "cohabiting spouse" , "eligible individual" ,

"qualified dependant" and "return of income" have the same meanings

as in

section 122.6 of the federal Act.

(2) Section 1 (7) (

h) of this Act does not change a reference

to Canada in the definition of "eligible individual" or in

section 122.61 (3)

(

a) of the federal Act, as those provisions apply for the purposes of

section

4.5 of this Act, to a reference to British Columbia.

BC Family Bonus

4.5

(1) Despite

section 2, an overpayment on account

of a person's liability under this Act for a taxation year is deemed to have

arisen during a month in relation to which the year is the base taxation year

where

(

a) the person and, if the Provincial minister so demands,

the person's cohabiting spouse at the end of the taxation year have filed a

return of income for that year, and

(

b) the person was resident in British Columbia for a

period that commenced before the first day of the month and that includes that

day.

(2) Where a person who was resident in British Columbia

during the period referred to in subsection (1) (

b) was also resident outside

British Columbia during that period, an overpayment that would otherwise be

deemed to have arisen during the month referred to in that subsection is deemed

to arise only if

(

a) the person was present in British Columbia for a period

of at least 14 days during that month, or

(

b) the person comes within a class of persons exempted

by regulation from the requirement to be present in British Columbia for the

period referred to in paragraph (a).

(3) The overpayment deemed to have arisen during a month

under subsection (1) in respect of the person's liability under this Act for

a taxation year is equal to,

(

a) if the person's adjusted income for that year does

not exceed $18 000, the amount determined by multiplying $103 by

the number of qualified dependants in respect of whom the person was an eligible

individual at the beginning of that month, and

(

b) if the person's adjusted income for that year exceeds

$18 000, the amount determined by the formula

($103 x N) – (P / 12)

where

N is the number of qualified dependants in respect of whom the person was an

eligible individual at the beginning of that month, and

P is

(i) 8% of the amount by which the person's adjusted income

for that year exceeds $18 000, if the person was at the beginning

of that month an eligible individual in respect of only one qualified dependant,

(ii) 16% of the amount by which the person's adjusted

income for that year exceeds $18 000, if the person was at the

beginning of that month an eligible individual in respect of more than one qualified

dependant.

(4) Despite subsections (1) to (3) of this section,

section

122.61 (2) of the federal Act applies for the purposes of this

section and

section

122.61 (3) (

a) of that Act applies for the same purposes.

Notice requirements and other rules

about eligible individuals and spouses

4.6

(1) Section 122.62 (1), (2), (4) and (5) of

the federal Act applies for the purposes of

section 4.5 of this Act.

(2) For the purpose of determining the amount deemed under

section 4.5 to be an overpayment on account of a person's liability under this

Act,

(

a) section 122.62 (6) of the federal Act applies in the

circumstances set out in that subsection, and

(

b) section 122.62 (7) of the federal Act applies in the

circumstances set out in that subsection.

BC Family Bonus cannot be attached or assigned

4.7 A refund of an amount deemed by

section 4.5

to be an overpayment on account of a person's liability under this Act for a

taxation year

(

a) cannot be charged or given as security,

(

b) cannot be assigned except under a prescribed Act,

(

c) cannot be garnished or attached,

(

d) is exempt from execution or seizure, and

(

e) cannot be retained by way of deduction or set-off

under the Financial Administration Act .

BC Family Bonus regulations and forms

4.8

(1) The Lieutenant Governor in Council may

make regulations for the purposes of sections 4.5 to 4.7, including regulations

(

a) specifying additional provisions of the federal Act

that apply for the purposes of those sections,

(

b) exempting, for the purposes of

section 4.5 (2) (b),

classes of persons from the requirement to be present in British Columbia, and

(

c) prescribing enactments for the purposes of sections

4.7 (b).

(2) Subsection (1) (

a) is repealed 2 years after it comes

into force.

(3) The Provincial minister may specify forms that are

to be used for the purposes of sections 4.5 to 4.7.

Section 12 is amended by adding ", (1.2)" after

"Sections 150, 151, 152 (1)" .

Section 13 is amended by adding the following subsection:

(1.1) Notwithstanding that the normal reassessment period

for a taxpayer in respect of a taxation year has elapsed, the Provincial minister

may redetermine the amount, if any, deemed under

section 4.5 to be an overpayment

on account of the taxpayer's liability for tax for that year.

Section 19 is amended by striking out "160.1 (1)," and

substituting "160.1 (1), (2.1) and (3)," .

Section 26 (2) (

a) is amended

(

a) by repealing subparagraph (

i) and substituting

the following:

(

i) the individual's residency for the purposes of

section

section 4.5 or any other provision of this Act; , and

(

b) by adding the following subparagraphs:

(i.1) the individual's presence in British Columbia for

the purposes of

section 4.5 (2);

(i.2) the amount that, by

section 122.62 (6) or (7) of

the federal Act as it applies for the purposes of

section 4.5 of this Act, is

deemed to be the individual's adjusted income; .

Transitional regulations

7 A regulation under

section 4.8 (1) of the Income

Tax Act that is made before July 1, 1997, may be made retroactive to any

date after June 30, 1996 and, if made retroactive, is deemed to have come into

force on the date specified.

Transitional year

(1) Section 4.5 of the Income Tax Act ,

as enacted by this Act, applies in respect of overpayments deemed to have arisen

during any month of 1996, after June 1996, on account of the liability under

the Income Tax Act of persons who have filed returns of income for the

1995 taxation year.

(2) For the purpose of giving effect on July 1, 1996 to

sections 4.4 to 4.7 of the Income Tax Act , as enacted by this Act,

(

a) the Minister of Social Services may disclose to the

Provincial minister information obtained under the Guaranteed Available Income

for Need Act relating to applicants or recipients under that Act who are

eligible individuals or qualified dependants as defined in

section 4.4 of the

Income Tax Act , and

(

b) the Provincial minister may disclose to the Minister

of Social Services information obtained under the Income Tax Act relating

to applicants or recipients under the Guaranteed Available Income For Need

Act who are eligible individuals or qualified dependants as defined in

section

4.4 of the Income Tax Act ,

even though an information-sharing agreement about that

information is not in effect when the information is disclosed.

(3) Information that was disclosed after January 1, 1996

and before December 1, 1996 and that would have been validly disclosed had subsection

(2) been in force when the information was disclosed is deemed, for the purposes

of the Freedom of Information and Protection of Privacy Act , to have

been disclosed in accordance with

section 33 of that Act.

(4) Section 50 (1) of the Income Tax Act does not

apply to information

(

a) disclosed in accordance with subsection (2) of this

section, or

(

b) deemed under subsection (3) of this

section to have

been disclosed in accordance with

section 33 of the Freedom of Information

and Protection of Privacy Act .

(5) Subsection (2) is repealed on November 30, 1996.

Commencement

(1) Section 1 is deemed to have come into force

on January 1, 1996 and is retroactive to the extent necessary to give it effect

on and after that date.

(2) Sections 2 and 8 are deemed to have come into force

on July 1, 1996 and are retroactive to the extent necessary to give them effect

on and after that date

Explanatory Notes

College and Institute Act

SECTION 1: [Income Tax Act, repeals

section 4.3 (3) and (4) (c)]

repeals the child portion of the sales tax credit.

SECTION 2: [Income Tax Act, adds sections 4.4 to 4.8]

section 4.4: adds

definitions required for the BC Family Bonus.

section 4.5: establishes a new benefit, the BC Family Bonus, that provides

families with incomes of up to $18 000 with a maximum bonus of $103 per child

per month and families with higher incomes with a partial bonus.

section 4.6: requires the submission of information to establish eligibility

for the family bonus and allows for the recalculation of the family bonus

in cases of family break-up or death of a spouse.

section 4.7: protects the family bonus from seizure so that it is available

for children.

section 4.8: authorizes the Lieutenant Governor in Council to make regulations

required for administering the family bonus. This

section also authorizes

the Minister of Finance and Corporate Relations to specify forms.

SECTION 3: [Income Tax Act, amends

section 12] is consequential

to the amendments made by sections 2 and 4 of this Bill. The consequential amendment

permits legal expenses and disbursements resulting from a redetermination of

a family bonus to be taken into account in calculating income.

SECTION 4: [Income Tax Act, amends

section 13] adds a provision

authorizing the Minister of Finance and Corporate Relations to redetermine the

amount of a family bonus.

SECTION 5: [Income Tax Act, amends

section 19] is consequential

to the amendments made by

section 2 of this Bill. The consequential amendment

makes spouses jointly and separately liable to repay any overpayments of the

family bonus and allows the Minister of Finance and Corporate Relations to assess

overpayments.

SECTION 6: [Income Tax Act, amends

section 26 (2) (a)] is consequential

to the amendments made by

section 2 of this Bill. The consequential amendment

specifies the grounds on which an individual may appeal to court from a decision

relating to the family bonus.

SECTION 7: [Transitional regulations] provides for regulations

required for the first year of operation of the family bonus provisions.

SECTION 8: [Transitional year] provides for other matters arising

in the first year of operation of the family bonus provisions.

Copyright

© 1996: Queen's Printer, Victoria, British Columbia, Canada