British Columbia Bill 2 (Government) — 5th Parliament, 38th Session — Previous Version 1
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2009 Legislative Session: 5th Session, 38th Parliament
FIRST READING
The following electronic version is for informational purposes only.
The printed version remains the official version.
HONOURABLE COLIN HANSEN
MINISTER OF FINANCE AND MINISTER
RESPONSIBLE FOR THE OLYMPICS
BILL 2 — 2009
BUDGET MEASURES IMPLEMENTATION ACT, 2009
HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:
Part 1 — Non-Tax Budget Measures
Balanced Budget and Ministerial Accountability Act
SECTION 1: [Balanced Budget and Ministerial Accountability Act,
section 1] adds a definition
of "revenue minister".
Section 1 (1) of the Balanced Budget and Ministerial Accountability Act, S.B.C. 2001, c. 28, is amended by adding the following definition:
"revenue minister" means the member of the Executive Council who is charged by order of the Lieutenant Governor in Council with the administration of the Income Tax Act .
SECTION 2: [Balanced Budget and Ministerial Accountability Act,
section 5] repeals and
replaces subsection (2) to reflect the disestablishment of the Ministry of Small
Business and Revenue, and makes consequential amendments to the repeal.
Section 5 is amended
(
a) in subsection (1) by striking out " , other than operating expenses referred to in subsection (2) " and by adding " subsection (2) and " after " subject to ", and
(
b) by repealing subsection (2) and substituting the following:
(2) Half of the 20% reduction in salary under
section 3, for any period in a fiscal year when a member of the Executive Council was the revenue minister, becomes due and payable to that member on the next day after the public accounts for that fiscal year are made public, if
(
a) the actual revenue from sources specified by regulation of Treasury Board is not less than an amount specified by regulation of Treasury Board, and
(
b) any other conditions under this
section applicable to that member during the period are satisfied for the fiscal year.
Budget Transparency and Accountability Act
SECTION 3: [Budget Transparency and Accountability Act,
section 4.1] allows the Lieutenant
Governor in Council to repeal, by regulation, the
section respecting the
accounting policy advisory committee rather than having that
section repealed
at a fixed date.
Section 4.1 (9) of the Budget Transparency and Accountability Act , S.B.C. 2000, c. 23, is repealed and the following substituted:
(9) This
section may be repealed by regulation of the Lieutenant Governor in Council.
Financial Administration Act
SECTION 4: [Financial Administration Act,
section 56.1] replaces a reference to "prepaid
capital advance" with "grant" and consequentially repeals a provision respecting
the amortization of prepaid capital advances.
Section 56.1 of the Financial Administration Act , R.S.B.C. 1996, c. 138, is amended
(
a) in subsection (2) by striking out " prepaid capital advance " and substituting " grant ", and
(
b) by repealing subsection (3).
SECTION 5: [Financial Administration Act,
section 56.1] authorizes the Minister of
Finance to make a grant to a government organization for its capital expenditures.
Section 56.1 is repealed and the following substituted:
Grant for capital expenditures
56.1 The Minister of Finance may make from the consolidated revenue fund a grant to a government organization, as defined in the Budget Transparency and Accountability Act , for its capital expenditures.
Hospital District Act
SECTION 6: [Hospital District Act,
section 32] removes a reference to "prepaid capital
advance".
Section 32 (2) (
c) of the Hospital District Act , R.S.B.C. 1996, c. 202, is amended by striking out " by a prepaid capital advance under
section 56.1 of the Financial Administration Act or ".
Land Act
SECTION 7: [Land Act,
section 109.1] exempts the government from paying any fees payable
in respect of services provided under the Act by the Surveyor General or
persons under the Surveyor General's direction.
Section 109.1 of the Land Act , R.S.B.C. 1996, c. 245, is amended
(
a) by renumbering the
section as
section 109.1 (1), and
(
b) by adding the following subsection:
(2) The government is exempt from paying any fees payable under subsection (1).
Land Tax Deferment Act
SECTION 8: [Land Tax Deferment Act,
section 15] amends the provision, as of the date the
provision came into force, to allow payments to municipalities without the
need for another appropriation.
Section 15 (1) of the Land Tax Deferment Act , R.S.B.C. 1996, c. 249, is amended by adding " from the consolidated revenue fund to " after " pay ".
Land Title Act
SECTION 9: [Land Title Act,
section 386] exempts the government from paying any fees
payable under this
section of the Act.
Section 386 of the Land Title Act , R.S.B.C. 1996, c. 250, is amended by adding the following subsection:
(7.1) The government is exempt from paying any fees payable under this section.
SECTION 10: [Land Title Act,
section 386.2] provides that this
section is subject to
sections 386 (7.1) and 386.1 (3) of the Act.
Section 386.2 is amended by adding " sections 386 (7.1) and 386.1 (3) and " after " but subject to ".
Special Accounts Appropriation and Control Act
SECTION 11: [Special Accounts Appropriation and Control Act,
section 9] provides for the
inclusion in the BC150 Cultural Fund Sub-account of money accepted by the
minister and money from the disposition of securities or other prescribed property
accepted by the minister as contributions to the BC150 Cultural Fund.
Section 9 of the Special Accounts Appropriation and Control Act , R.S.B.C. 1996, c. 436, is amended
(
a) in subsection (4) by adding the following paragraph:
(
c) money accepted by the minister under subsection (6) and money from the disposition of securities or other property accepted by the minister under that subsection. , and
(
b) by adding the following subsections:
(6) The minister, on behalf of the government, may accept money, securities or other prescribed property as contributions to the BC150 Cultural Fund.
(7) The minister may dispose of securities or other property accepted under subsection (6).
SECTION 12: [Special Accounts Appropriation and Control Act,
section 9.4] repeals and
replaces subsection (4), as of the date the provision came into force, to authorize
any investment losses of the Children's Education Fund special account to
be paid for from the account.
Section 9.4 (4) is repealed and the following substituted:
(4) Despite
section 21 (3) of the Financial Administration Act , the minister responsible for the administration of this
section may pay amounts out of the special account
(
a) for the purpose of providing financial assistance in accordance with the regulations to students born on or after January 1, 2007 who are
(
i) eligible in accordance with the regulations, and
(ii) enrolled in education programs that are eligible in accordance with the regulations, and
(
b) to cover any investment losses of the special account.
SECTION 13: [Special Accounts Appropriation and Control Act,
section 10] authorizes the
Lieutenant Governor in Council to make regulations prescribing property that
may be accepted as contributions to the BC150 Cultural Fund.
Section 10 (2) is amended by adding the following paragraph:
(
c) prescribing property for the purpose of
section 9 (6) [contributions to BC150 Cultural Fund] .
Non-Tax Budget Measures — Transitional and Other Provisions
SECTION 14: [Increase in balance of BC Timber Sales Account] increases the balance of
the BC Timber Sales Account special account by $300 million.
Increase in balance of BC Timber Sales Account
14 The balance of the BC Timber Sales Account special account is increased by $300 million.
SECTION 15: [Transition — Balanced Budget and Ministerial Accountability Act] provides
that operating expenses under
section 5 of the Balanced Budget and Ministerial
Accountability Act do not include operating expenses of the Ministry of
Small Business and Revenue during the 2008-2009 fiscal year.
Transition — Balanced Budget and Ministerial Accountability Act
15 For the purposes of the 2008-2009 fiscal year, operating expenses referred to in
section 5 of the Balanced Budget and Ministerial Accountability Act do not include
(
a) operating expenses of the Ministry of Small Business and Revenue incurred prior to January 19, 2009, or
(
b) operating expenses charged against the unexpended balance of the appropriation for the Ministry of Small Business and Revenue transferred to a member of the Executive Council by Order in Council 17/2009, 28/2009 or 45/2009.
SECTION 16: [Transition —
section 56.1 of the Financial Administration Act] conclusively
deems prepaid capital advances to have been grants validly made out of the
consolidated revenue fund.
Transition —
section 56.1 of the Financial Administration Act
(1) All prepaid capital advances made out of the consolidated revenue fund under
section 56.1 of the Financial Administration Act to an institution for its capital expenditures are conclusively deemed to have been grants validly made out of the consolidated revenue fund under that
section to an institution for its capital expenditures.
(2) This
section is retroactive to the extent necessary to give full force and effect to its provisions and must not be construed as lacking retroactive effect in relation to any matter by reason that it makes no specific reference to that matter.
Part 2 — Tax-Related Budget Measures
Corporation Capital Tax Act
SECTION 17: [Corporation Capital Tax Act,
section 7] includes accumulated other comprehensive
income within the aggregate paid up capital of a financial corporation.
Section 7 (1) of the Corporation Capital Tax Act , R.S.B.C. 1996, c. 73, is amended by striking out " and " at the end of paragraph (b), by adding " , and " at the end of paragraph (
c) and by adding the following paragraph:
(
e) accumulated other comprehensive income.
Income Tax Act
SECTION 18: [Income Tax Act,
section 4.69] reduces for the 2010 and subsequent taxation
years the percentage applied in determining the dividend tax credit for income
taxed at the small business rate.
Section 4.69 (
a) of the Income Tax Act , R.S.B.C. 1996, c. 215, is amended by striking out " 21% " and substituting " 17% ".
SECTION 19: [Income Tax Act,
section 4.721] extends to the end of 2009 the date that an
expense can be a BC flow-through mining expenditure for the purposes of calculating
the BC mining flow-through share tax credit.
Section 4.721 is amended
(
a) in subsection (1) in paragraph (
d) of the definition of "BC flow-through mining expenditure" by striking out " 2009 " and substituting " 2010 ", and
(
b) in subsection (1.1) by striking out " 2009 " in both places and substituting " 2010 ".
SECTION 20: [Income Tax Act,
section 8] excludes amounts received from a registered disability
savings plan or repaid under the Canada Disability Savings Act from
the computation of adjusted income for the purposes of determining the
amount of the sales tax credit.
Section 8 is amended in the definition of "adjusted income" by striking out " and " at the end of paragraph (
b) and by adding the following paragraphs:
(b.1) were included under
section 56 (1) (q.1) [registered disability savings plan payments] of the federal Act,
(b.2) were deductible under
section 60 (z) [repayment under the Canada Disability Savings Act] of the federal Act, and .
SECTION 21: [Income Tax Act, sections 14, 16 and 25] effective January 1, 2010,
reduces from 11% to 10.5% the corporate income tax rate established by
section 14 (2) of the Act, and
replaces references to the existing corporate income tax rate with references to the reduced corporate income tax rate in provisions relating to the foreign tax credit [section 14 (3.1) (a)] and to the tax to be paid by small businesses [section 16 (1) (b)] , credit unions [section 16 (2) (b)] and qualifying environmental trusts [section 25 (2)] .
21 Sections 14 (2) and (3.1) (a), 16 (1) (
b) and (2) (
b) and 25 (2) are amended by striking out " 11% " and substituting " 10.5% ".
SECTION 22: [Income Tax Act, sections 14, 16 and 25] effective January 1, 2011,
reduces from 10.5% to 10% the corporate income tax rate established by
section 14 (2) of the Act, and
replaces references to the existing corporate income tax rate with references to the reduced corporate income tax rate in provisions relating to the foreign tax credit [section 14 (3.1) (a)] and to the tax to be paid by small businesses [section 16 (1) (b)] , credit unions [section 16 (2) (b)] and qualifying environmental trusts [section 25 (2)] .
22 Sections 14 (2) and (3.1) (a), 16 (1) (
b) and (2) (
b) and 25 (2) are amended by striking out " 10.5% " and substituting " 10% ".
SECTION 23: [Income Tax Act,
section 25.1] consequential to the amendment made to
section
4.721 of the Act by this Bill, prevents an expense from being claimed
under both the mining exploration tax credit and the mining flow-through
share tax credit.
Section 25.1 (1) is amended in paragraph (f.2) of the definition of "excluded expense"
(
a) in subparagraph (
i) by striking out " January 1, 2009 " and substituting " January 1, 2010 ", and
(
b) in subparagraph (ii) by striking out " after December 31, 2008 and before January 1, 2010 " and substituting " after December 31, 2009 and before January 1, 2011 ".
SECTION 24: [Income Tax Act,
section 34] applies a
section of the Income Tax Act (Canada)
that provides for liability for tax payable in respect of a disability assistance
payment that is included in computing income for a taxpayer when a disability
savings plan ceases to be a registered disability savings plan.
Section 34 is amended by adding " 160.21, " after " 160.2, ".
SECTION 25: [Income Tax Act,
section 80] removes the restriction that requires principal
photography of a production to begin before a specified date for the production
to be eligible for film and television tax credits.
Section 80 is amended
(
a) in subsection (1) (
a) by adding " and " at the end of subparagraph (i), by striking out " and " at the end of subparagraph (ii) and by repealing subparagraph (iii),
(
b) in subsection (5) (
a) by striking out " and before April 1, 2013 ", and
(
c) by repealing subsection (7) and substituting the following:
(7) For the purpose of determining the amount of the tax credit under subsection (6), the references to "March 31, 1998" in the definition of "BC labour expenditure" in
section 79 (1) must be read as "December 31, 2007".
SECTION 26: [Income Tax Act,
section 80] in respect of a production for which principal
photography begins on or after January 1, 2009, amends the criteria for a corporation
to be eligible for the basic (film and television) tax credits by removing
the requirement that the corporation or an eligible production corporation
related to the corporation be BC-controlled.
Section 80 (1) is amended
(
a) in paragraph (
c) by adding " for a production for which principal photography begins before January 1, 2009, " before " the corporation is ",
(
b) by adding the following paragraph:
(c.1) for a production for which principal photography begins on or after January 1, 2009, the corporation is, throughout the taxation year in respect of which the tax credit is being claimed, an eligible production corporation, ,
(
c) by repealing paragraph (f) (i) (
A) and substituting the following:
(
A) in the case of a production for which principal photography begins before January 1, 2009, a BC-controlled eligible production corporation related to the corporation, or in the case of a production for which principal photography begins on or after January 1, 2009, an eligible production corporation related to the corporation, and ,
(
d) in paragraph (
h) by striking out " treaty co-production, " and substituting " treaty co-production and for which principal photography begins before January 1, 2009, ",
(
e) by adding the following paragraph:
(h.1) for a production that is an interprovincial co-production or a treaty
co-production and for which principal photography begins on or after January 1, 2009, the corporation, or an eligible production corporation that is related to the corporation, retains a share, acceptable to the certifying authority, of revenues from the exploitation of the production in non-Canadian markets, ,
(
f) in paragraph (
i) by striking out " interprovincial co-production, " and substituting " interprovincial co-production and for which principal photography begins before January 1, 2009, " , and
(
g) by adding the following paragraph:
(i.1) for a production that is an interprovincial co-production and for which principal photography begins on or after January 1, 2009, more than 20% of the copyright in the production is owned by the corporation or by an eligible production corporation that is related to the corporation, .
SECTION 27: [Income Tax Act,
section 82.1] removes the restriction that requires principal
photography of a production to begin before a specified date for the production
to be eligible for production services tax credits.
Section 82.1 is amended
(
a) in subsection (1) (
a) by adding " and " at the end of subparagraph (i), by striking out " and " at the end of subparagraph (ii) and by repealing subparagraph (iii),
(
b) in subsection (6) (
a) by striking out " and before June 1, 2013 ", and
(
c) by repealing subsection (8) and substituting the following:
(8) For the purpose of determining the amount of the tax credit under subsection (7), despite paragraph (
a) in the definition of "accredited BC labour expenditure" in
section 79 (1), the references to "March 31, 1998" in the definition of "BC labour expenditure" in
section 79 (1) must be read as "December 31, 2007".
International Financial Activity Act
SECTION 28: [International Financial Activity Act,
section 1] adds a definition.
Section 1 of the International Financial Activity Act , S.B.C. 2004, c. 49, is amended by adding the following definition:
"permanent establishment" has the same meaning as in
section 400 (2) of the Income Tax Regulations (Canada); .
SECTION 29: [International Financial Activity Act,
section 2] provides that the definition
of "non-resident person" does not include a person in respect of a business carried
on by the person through a permanent establishment in Canada.
Section 2 (1) is amended by repealing the definition of "non-resident person" and substituting the following:
"non-resident person" does not include
(
a) a partnership unless all of the partners of the partnership are non-resident persons, or
(
b) a person who carries on a business through a permanent establishment in Canada, but only in respect of that business.
SECTION 30: [International Financial Activity Act,
section 9] is consequential to the addition
of a definition to
section 1 of the Act by this Bill.
Section 9 (1) (
b) is repealed and the following substituted:
(
b) the corporation must have a permanent establishment in British Columbia; .
SECTION 31: [International Financial Activity Act,
section 10] authorizes the Commissioner
of Income Tax to extend the 90 day notice requirement after the amalgamation
of 2 or more corporations in specified circumstances.
Section 10 (2) (
a) is amended by adding " or within a later period approved by the commissioner " after " within 90 days of the date of amalgamation ".
Motor Fuel Tax Act
SECTION 32: [Motor Fuel Tax Act,
section 1] is self-explanatory.
Section 1 of the Motor Fuel Tax Act , R.S.B.C. 1996, c. 317, is amended by repealing the definition of "fuel" and substituting the following:
"fuel" means
(
a) any gas or liquid for use for generating power by means of an internal combustion engine, or
(
b) hydrogen for use in a fuel cell vehicle; .
Social Service Tax Act
SECTION 33: [Social Service Tax Act,
section 1] adds subsections to clarify that tax is payable
on transactions where property, services or rights are acquired for use by
one person at another person's expense.
Section 1 of the Social Service Tax Act , R.S.B.C. 1996, c. 431, is amended by renumbering the
section as
section 1 (1) and by adding the following subsections:
(2) For the purposes of this Act, a person who, for the use or consumption of another person, acquires at a sale, leases as lessee, utilizes, brings or sends into British Columbia, or receives delivery of in British Columbia, tangible personal property
(
a) is deemed to have done so at the first person's expense, or
(
b) if the first person acts on behalf of or as an agent for a principal, is deemed to have done so at the expense of the principal,
unless the other person acquires the tangible personal property at a sale or is given the right to use the tangible personal property under a lease.
(3) For the purposes of this Act, a person who, for the benefit or use of another person, agrees to pay or is otherwise obliged to pay consideration for a service or right referred to in subsection (4)
(
a) is deemed to have done so at the first person's expense, or
(
b) if the first person acts on behalf of or as an agent for a principal, is deemed to have done so at the expense of the principal,
unless the other person agrees to pay or is otherwise obliged to pay consideration for the service or right.
(4) Subsection (3) applies with respect to the following services and rights:
(
a) legal services;
(
b) parking rights;
(
c) taxable services;
(
d) telecommunication services.
SECTION 34: [Social Service Tax Act,
section 71] adds as exempt from tax certain drugs
and vaccines specified under the Drug Schedules Regulation and expands the
exemption for medicaments from those sold on the prescription of, or provided
as promotional material to, physicians, dentists or veterinarians to those sold
on the prescription of, or provided as promotional material to, any person falling
within the definition of "practitioner" under the Pharmacists, Pharmacy
Operations and Drug Scheduling Act .
Section 71 (
b) is repealed and the following substituted:
(
b) medicaments, when
(
i) sold on the prescription of a practitioner as defined under the Pharmacists, Pharmacy Operations and Drug Scheduling Act , or
(ii) provided as part of a promotional distribution by a pharmaceutical company to a practitioner as defined under the Pharmacists, Pharmacy Operations and Drug Scheduling Act ;
(b.1) drugs specified in
Schedule I or IA of the Drug Schedules Regulation, B.C. Reg. 9/98;
(b.2) vaccines specified in
Schedule II of the Drug Schedules Regulation or
Schedule A of the Veterinary Drug and Medicated Feed Regulation, B.C. Reg. 47/82; .
SECTION 35: [Social Service Tax Act,
section 138]
adds authority to enact regulations exempting certain materials and classes of materials from taxes imposed under sections 5 to 25 and 112.3 of the Act;
repeals
section 138 (3) of the Act, which is spent;
enacts a new provision authorizing regulations under
section 138 (1) (
q) of the Act retroactive to a date on or after February 22, 2006, if they are made before December 31,
Section 138 is amended
(
a) in subsection (1) (q) (vi) by striking out " parts " wherever it appears and substituting " parts or materials ",
(
b) by repealing subsection (3), and
(
c) by adding the following subsection:
(5) If made before December 31, 2009, regulations made under subsection (1) (
q) may be made retroactive to a date on or after February 22, 2006, and if made retroactive are deemed to have come into force on the date specified in the regulation.
Tobacco Tax Act
SECTION 36: [Tobacco Tax Act,
section 2] increases the tax on cigarettes and loose tobacco
from 17.9 cents to 18.5 cents per cigarette or gram respectively.
Section 2 (2) and (3) of the Tobacco Tax Act , R.S.B.C. 1996, c. 452, is amended by striking out " 17.9 " and substituting " 18.5 ".
Tax-Related Budget Measures — Transitional and Other Provisions
Application — Social Service Tax Act
37 Subject to
section 80 of the Social Service Tax Act , no refund is payable under that Act of taxes paid on or after July 31, 2001 and before February 22, 2006, and no exemption may be claimed for that period, for or in respect of machinery or equipment, purchased or leased by a manufacturer, as defined in
section 13.1 of the Social Service Tax Act Regulations, B.C. Reg. 84/58, used in the generation of heat, unless the following conditions are met:
(
a) the heat was generated as one step in
(
i) fabricating or manufacturing tangible personal property to create a new product that is substantially different from the material or property from which it was made,
(ii) processing tangible personal property by performing a series of operations or a complex operation that results in a substantial change in the form or other physical or chemical characteristics of the tangible personal property, or
(iii) extracting or processing minerals, petroleum or natural gas;
(
b) the activity described in paragraph (a) (i), (ii) or (iii) took place at one of the following locations:
(
i) a manufacturing site as described in
section 13.2 (2) of the Social Service Tax Act Regulations, B.C. Reg. 84/58,
(ii) a mine site as described in
section 13.2 (3) of the Social Service Tax Act Regulations, or
(iii) a well site, processing plant or refinery as described in
section 13.2 (4) of the Social Service Tax Act Regulations.
SECTION 37: [Application — Social Service Tax Act] prohibits refunds of any tax paid or
any claims for exemptions under the Social Service Tax Act on or after July 31,
2001 and before February 22, 2006 in respect of machinery and equipment for
use in the generation of heat if the generation of heat did not occur as one step
in certain activities, as described, that took place at certain locations, also
described.
Transition — Corporation Capital Tax Act
Section 7 (1) (
e) of the Corporation Capital Tax Act , as enacted by this Act, applies to taxation years beginning on or after October 1, 2006.
SECTION 39: [Transition — Motor Fuel Tax Act] authorizes the making of regulations to
define alternative motor fuels and prescribe tax rates or exemptions on those
fuels retroactive to February 18, 2009, provided they are made before December
31, 2009.
Transition — Motor Fuel Tax Act
39 If made before December 31, 2009, regulations made under
section 71 (2) (i), (o.1) and (o.2) of the Motor Fuel Tax Act may be made retroactive to a date on or after February 18, 2009, and if made retroactive are deemed to have come into force on the date specified.
Commencement
40 The provisions of this Act referred to in column 1 of the following table come into force as set out in column 2 of the table:
Item
Column 1
Provisions of Act
Column 2
Commencement
Anything not elsewhere covered by this table
The date of Royal Assent
Sections 1 and 2
April 1, 2008
Section 4
April 1, 1998
Section 7
April 1, 2009
Section 8
January 1, 1974
Sections 9 and 10
April 1, 2009
Section 12
April 1, 2007
Section 15
April 1, 2008
Section 17
October 1, 2006
Section 18
January 1, 2010
Sections 19 and 20
January 1, 2009
Section 21
January 1, 2010
Section 22
January 1, 2011
Sections 23 and 24
January 1, 2009
Section 26
January 1, 2009
Sections 28 to 30
September 1, 2004
Section 32
February 18, 2009
Section 33
January 1, 2000
Sections 34 to 37
February 18, 2009
Section 39
February 18, 2009
Explanatory Notes
Balanced Budget and Ministerial Accountability Act
SECTION 1: [Balanced Budget and Ministerial Accountability Act,
section 1] adds a definition
of "revenue minister".
SECTION 2: [Balanced Budget and Ministerial Accountability Act,
section 5] repeals and
replaces subsection (2) to reflect the disestablishment of the Ministry of Small
Business and Revenue, and makes consequential amendments to the repeal.
Budget Transparency and Accountability Act
SECTION 3: [Budget Transparency and Accountability Act,
section 4.1] allows the Lieutenant
Governor in Council to repeal, by regulation, the
section respecting the
accounting policy advisory committee rather than having that
section repealed
at a fixed date.
Financial Administration Act
SECTION 4: [Financial Administration Act,
section 56.1] replaces a reference to "prepaid
capital advance" with "grant" and consequentially repeals a provision respecting
the amortization of prepaid capital advances.
SECTION 5: [Financial Administration Act,
section 56.1] authorizes the Minister of
Finance to make a grant to a government organization for its capital expenditures.
Hospital District Act
SECTION 6: [Hospital District Act,
section 32] removes a reference to "prepaid capital
advance".
Land Act
SECTION 7: [Land Act,
section 109.1] exempts the government from paying any fees payable
in respect of services provided under the Act by the Surveyor General or
persons under the Surveyor General's direction.
Land Tax Deferment Act
SECTION 8: [Land Tax Deferment Act,
section 15] amends the provision, as of the date the
provision came into force, to allow payments to municipalities without the
need for another appropriation.
Land Title Act
SECTION 9: [Land Title Act,
section 386] exempts the government from paying any fees
payable under this
section of the Act.
SECTION 10: [Land Title Act,
section 386.2] provides that this
section is subject to
sections 386 (7.1) and 386.1 (3) of the Act.
Special Accounts Appropriation and Control Act
SECTION 11: [Special Accounts Appropriation and Control Act,
section 9] provides for the
inclusion in the BC150 Cultural Fund Sub-account of money accepted by the
minister and money from the disposition of securities or other prescribed property
accepted by the minister as contributions to the BC150 Cultural Fund.
SECTION 12: [Special Accounts Appropriation and Control Act,
section 9.4] repeals and
replaces subsection (4), as of the date the provision came into force, to authorize
any investment losses of the Children's Education Fund special account to
be paid for from the account.
SECTION 13: [Special Accounts Appropriation and Control Act,
section 10] authorizes the
Lieutenant Governor in Council to make regulations prescribing property that
may be accepted as contributions to the BC150 Cultural Fund.
SECTION 14: [Increase in balance of BC Timber Sales Account] increases the balance of
the BC Timber Sales Account special account by $300 million.
SECTION 15: [Transition — Balanced Budget and Ministerial Accountability Act] provides
that operating expenses under
section 5 of the Balanced Budget and Ministerial
Accountability Act do not include operating expenses of the Ministry of
Small Business and Revenue during the 2008-2009 fiscal year.
SECTION 16: [Transition —
section 56.1 of the Financial Administration Act] conclusively
deems prepaid capital advances to have been grants validly made out of the
consolidated revenue fund.
Corporation Capital Tax Act
SECTION 17: [Corporation Capital Tax Act,
section 7] includes accumulated other comprehensive
income within the aggregate paid up capital of a financial corporation.
Income Tax Act
SECTION 18: [Income Tax Act,
section 4.69] reduces for the 2010 and subsequent taxation
years the percentage applied in determining the dividend tax credit for income
taxed at the small business rate.
SECTION 19: [Income Tax Act,
section 4.721] extends to the end of 2009 the date that an
expense can be a BC flow-through mining expenditure for the purposes of calculating
the BC mining flow-through share tax credit.
SECTION 20: [Income Tax Act,
section 8] excludes amounts received from a registered disability
savings plan or repaid under the Canada Disability Savings Act from
the computation of adjusted income for the purposes of determining the
amount of the sales tax credit.
SECTION 21: [Income Tax Act, sections 14, 16 and 25] effective January 1, 2010,
reduces from 11% to 10.5% the corporate income tax rate established by
section 14 (2) of the Act, and
replaces references to the existing corporate income tax rate with references to the reduced corporate income tax rate in provisions relating to the foreign tax credit [section 14 (3.1) (a)] and to the tax to be paid by small businesses [section 16 (1) (b)] , credit unions [section 16 (2) (b)] and qualifying environmental trusts [section 25 (2)] .
SECTION 22: [Income Tax Act, sections 14, 16 and 25] effective January 1, 2011,
reduces from 10.5% to 10% the corporate income tax rate established by
section 14 (2) of the Act, and
replaces references to the existing corporate income tax rate with references to the reduced corporate income tax rate in provisions relating to the foreign tax credit [section 14 (3.1) (a)] and to the tax to be paid by small businesses [section 16 (1) (b)] , credit unions [section 16 (2) (b)] and qualifying environmental trusts [section 25 (2)] .
SECTION 23: [Income Tax Act,
section 25.1] consequential to the amendment made to
section
4.721 of the Act by this Bill, prevents an expense from being claimed
under both the mining exploration tax credit and the mining flow-through
share tax credit.
SECTION 24: [Income Tax Act,
section 34] applies a
section of the Income Tax Act (Canada)
that provides for liability for tax payable in respect of a disability assistance
payment that is included in computing income for a taxpayer when a disability
savings plan ceases to be a registered disability savings plan.
SECTION 25: [Income Tax Act,
section 80] removes the restriction that requires principal
photography of a production to begin before a specified date for the production
to be eligible for film and television tax credits.
SECTION 26: [Income Tax Act,
section 80] in respect of a production for which principal
photography begins on or after January 1, 2009, amends the criteria for a corporation
to be eligible for the basic (film and television) tax credits by removing
the requirement that the corporation or an eligible production corporation
related to the corporation be BC-controlled.
SECTION 27: [Income Tax Act,
section 82.1] removes the restriction that requires principal
photography of a production to begin before a specified date for the production
to be eligible for production services tax credits.
International Financial Activity Act
SECTION 28: [International Financial Activity Act,
section 1] adds a definition.
SECTION 29: [International Financial Activity Act,
section 2] provides that the definition
of "non-resident person" does not include a person in respect of a business carried
on by the person through a permanent establishment in Canada.
SECTION 30: [International Financial Activity Act,
section 9] is consequential to the addition
of a definition to
section 1 of the Act by this Bill.
SECTION 31: [International Financial Activity Act,
section 10] authorizes the Commissioner
of Income Tax to extend the 90 day notice requirement after the amalgamation
of 2 or more corporations in specified circumstances.
Motor Fuel Tax Act
SECTION 32: [Motor Fuel Tax Act,
section 1] is self-explanatory.
Social Service Tax Act
SECTION 33: [Social Service Tax Act,
section 1] adds subsections to clarify that tax is payable
on transactions where property, services or rights are acquired for use by
one person at another person's expense.
SECTION 34: [Social Service Tax Act,
section 71] adds as exempt from tax certain drugs
and vaccines specified under the Drug Schedules Regulation and expands the
exemption for medicaments from those sold on the prescription of, or provided
as promotional material to, physicians, dentists or veterinarians to those sold
on the prescription of, or provided as promotional material to, any person falling
within the definition of "practitioner" under the Pharmacists, Pharmacy
Operations and Drug Scheduling Act .
SECTION 35: [Social Service Tax Act,
section 138]
adds authority to enact regulations exempting certain materials and classes of materials from taxes imposed under sections 5 to 25 and 112.3 of the Act;
repeals
section 138 (3) of the Act, which is spent;
enacts a new provision authorizing regulations under
section 138 (1) (
q) of the Act retroactive to a date on or after February 22, 2006, if they are made before December 31, 2009.
Tobacco Tax Act
SECTION 36: [Tobacco Tax Act,
section 2] increases the tax on cigarettes and loose tobacco
from 17.9 cents to 18.5 cents per cigarette or gram respectively.
SECTION 37: [Application — Social Service Tax Act] prohibits refunds of any tax paid or
any claims for exemptions under the Social Service Tax Act on or after July 31,
2001 and before February 22, 2006 in respect of machinery and equipment for
use in the generation of heat if the generation of heat did not occur as one step
in certain activities, as described, that took place at certain locations, also
described.
SECTION 38: [Transition — Corporation Capital Tax Act] is self-explanatory.
SECTION 39: [Transition — Motor Fuel Tax Act] authorizes the making of regulations to
define alternative motor fuels and prescribe tax rates or exemptions on those
fuels retroactive to February 18, 2009, provided they are made before December
31, 2009.
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