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2003 Legislative Session: 4th Session, 37th Parliament

FIRST READING

The following electronic version is for informational

purposes only.

The printed version remains the official version.

HONOURABLE BILL BARISOFF

MINISTER OF PROVINCIAL REVENUE

BILL 42 – 2003

PROVINCIAL REVENUE STATUTES

AMENDMENT ACT (No. 2), 2003

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

Motor Fuel Tax Act

Section 1 of the Motor Fuel Tax Act, R.S.B.C. 1996, c. 317, is amended in the definition of

"authorization" by striking out "section 14 (1);" and substituting "section 14 (1) or 14.1 (1), as the case may be;" .

Section 14 is amended

(

a) by adding the following subsection:

(3.1) A person authorized to colour fuel must use the prescribed dye, the prescribed dyeing procedures and the prescribed equipment to colour the fuel. , and

(

b) in subsection (4) by striking out "or" at the end of paragraph (a), by repealing paragraph (

b) and by substituting the following:

(

b) a term or condition imposed with respect to an authorization under subsection (1) or

section 14.1, or

(

c) a term or condition imposed under subsection (9).

3 The following

section is added:

Authority to sell coloured fuel

(2) An authorized person must not delegate or transfer the authorized person's authority to sell coloured fuel.

(3) A person must not sell coloured fuel unless the person has an authorization to sell coloured fuel.

(4) Section 14 (4) to (9) applies to an authorization under this section.

Section 36 (1) is repealed and the following substituted:

(1) The minister may provide allowances as prescribed by the regulations, to

(

a) collectors for their services in collecting and remitting the tax to the minister,

(

b) prescribed collectors to account for evaporation of fuel that occurs in the normal course of business, and

(

c) persons authorized to colour fuel under

section 14 for their services in colouring fuel.

Section 41 is amended

(

a) in subsection (1) by striking out "or the premises where the records of the person are kept," and substituting "the premises where the records of the person are kept or the work site at which fuel is coloured, stored or used" ,

(

b) in subsection (1) by adding the following paragraph:

(

d) inspect and take samples of the contents of fuel storage tanks, including fuel tanks of motor vehicles or fuel tanks mounted on motor vehicles, to ascertain compliance with this Act or the regulations. , and

(

c) in subsection (4) by striking out "in subsection (1) (

a) to (c)." and substituting "in subsection (1) (

a) to (d)."

Section 50 (1) (

a) is amended by striking out "section 14 (4);" and substituting "section 14 or 14.1;" .

Section 53 (2) is repealed and following substituted:

(2) The amount of the bond is to be determined by the director, but it must not be greater than 6 times the estimated amount of tax that would be collectable in respect of fuel imported, manufactured or otherwise acquired during the reporting period if that fuel were sold to a purchaser.

Section 71 (2) is amended

(

a) by repealing paragraph (

m) and substituting the following:

(

m) prescribing the types of dye for colouring fuel, the equipment to be used to colour fuel, the procedures for colouring fuel, and the place at which fuel may be coloured; ,

(

b) in paragraph (

o) by striking out "under

section 14 to colour fuel" and substituting "under

section 14 to colour fuel or under

section 14.1 to sell coloured fuel" ,

(

c) in paragraph (

q) by striking out "under

section 14 (4);" and substituting "under

section 14 (4) or 14.1;" , and

(

d) by adding the following paragraph:

(

z) for the purposes of

section 36 (1), prescribing the amount of an allowance and the circumstances in which an allowance will be provided, and prescribing different allowances and different circumstances for different classes of collectors or classes of persons authorized to colour fuel.

Social Service Tax Act

9 The Social Service Tax Act, R.S.B.C. 1996, c. 431, is amended by adding the following Division to

Part 2:

Division 10 – Fuel

Sale of fuel

68.1

(1) Subject to subsection (2), a person must

not sell liquid fuel unless that fuel is coloured in the manner in which fuel

is coloured under the Motor Fuel Tax Act .

(2) Subsection (1) does not apply to fuel described in

section 74 (a).

(3) A person must not colour fuel for the purposes of

subsection (1) unless that person is authorized to colour fuel under

section

14 of the Motor Fuel Tax Act .

(4) Fuel that is not coloured as required under this

section is, for the purposes of the Motor Fuel Tax Act , deemed to be

motive fuel as defined under that Act.

(5) Without limiting subsection (4),

(

a) a purchaser of fuel referred to in subsection

(4) is subject to tax under

section 10 of the Motor Fuel Tax Act , and

(

b) a person who sells fuel referred to in subsection (4) is subject to the obligations imposed on sellers of fuel under that Act, including obligations relating to the collection and remittance of tax and the payment of security, and is subject to the requirements for appointments and authorizations under that Act.

10 The following

section is added:

Tax payment agreements

93.1

(1) The commissioner may, in the circumstances established by the regulations, enter into an agreement, with a person liable to pay the tax imposed by this Act, relating to the time and manner in which the tax is to be paid to the government.

(2) An agreement referred to in subsection (1) is subject to the conditions established in the regulations.

(3) Despite anything in this Act, an agreement referred to in subsection (1) may provide

(

a) that instead of paying tax to a person referred to

section 93 (1) or (1.1), the person liable must pay the tax directly to the government,

(

b) that instead of paying tax to an agent referred to in Division 2, the person liable must pay the tax directly to the government,

(

c) that the tax be paid at a time other than the time referred to in this Act,

(

d) that interest accrues from a time other than the time at which the tax is due and payable under this Act,

(

e) that payments are based on formulas or estimates referred to in the agreement, and

(4) If an agreement referred to in subsection (1) is, by the terms of the agreement or by the regulations, subject to a condition referred to in subsection (3) (a), the person referred to in

section 93 (1) or (1.1) is relieved of the obligation to collect the tax.

Section 138 (1) is amended by adding the following paragraph:

(

s) prescribing any matter or thing related to an agreement under

section 93.1, including the circumstances in which the commissioner may enter into the agreement, the conditions to which the agreement is subject, the matters referred to in

section 93.1 (3), and the imposition of penalties for the failure to comply with the agreement.

Commencement

12 Sections 1 to 9 come into force by regulation of the Lieutenant Governor in Council.

Explanatory Notes

Motor Fuel Tax Act

SECTION 1: [Motor Fuel Tax Act, amends

section 1] expands the

existing definition of an "authorization" to include the new authorization established

under

section 14.1 of the Act.

SECTION 2: [Motor Fuel Tax Act, amends

section 14]

(

a) requires that persons authorized to colour fuel use the prescribed dye, procedures and equipment for dyeing fuel;

SECTION 3: [Motor Fuel Tax Act, enacts

section 14.1] establishes

that all persons who sell coloured fuel must have an authorization from the

director and that the authorization may be suspended or cancelled for non-compliance

with the Act.

SECTION 4: [Motor Fuel Tax Act, repeals and replaces

section 36 (1)]

establishes that the minister may provide allowances to collectors for collecting

and remitting tax, to prescribed collectors to account for security paid on

fuel that evaporates before it is sold to a purchaser, and to persons authorized

to colour fuel for their services in colouring fuel.

SECTION 5: [Motor Fuel Tax Act, amends

section 41 (1)] authorizes

inspections of work sites at which fuel is coloured, stored or used and authorizes

sampling of the contents of fuel storage tanks to ensure compliance with the

Act.

SECTION 6: [Motor Fuel Tax Act, amends

section 50 (1) (a)] establishes

that if the director has suspended or cancelled a persons' authorization to

sell coloured fuel, that person may appeal the suspension or cancellation to

the minister.

SECTION 7: [Motor Fuel Tax Act, repeals and replaces

section 53 (2)]

amends the existing bond provision to establish a bond amount to be deposited

if fuel acquired in British Columbia is subsequently sold to an exempt purchaser.

SECTION 8: [Motor Fuel Tax Act, amends

section 71 (2)] authorizes

regulations respecting the procedures and sites for colouring fuel, the reports

to be made by persons authorized to sell coloured fuel and the amount of allowances

that may be provided, and the circumstances in which allowances may be provided,

under the Act.

Social Service Tax Act

SECTION 9: [Social Service Tax Act, enacts Division 10 of

Part 2]

requires that fuel subject to tax under the Social Service Tax Act be

coloured as established under the Motor Fuel Tax Act, and provides that

if the fuel is not coloured, it is deemed to be subject to tax at the rates

established for motive fuel under the Motor Fuel Tax Act.

SECTION 10: [Social Service Tax Act, enacts

section 93.1] allows

businesses to enter into agreements to pay tax on their purchases directly to

the government in accordance with the terms of the agreement.

SECTION 11: [Social Service Tax Act, adds

section 138 (1) (s)]

prescribes regulations consequential to

section 93.1 enacted by this Bill.

Copyright (c) 2003: Queen's Printer, Victoria, British Columbia, Canada