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Volume 63, No. 9

107/2020

The British Columbia Gazette,

Part II

May 19, 2020

B.C. Reg. 107/2020 , deposited May 19, 2020, under the PROPERTY TRANSFER TAX ACT [section 37 (2.1)]. Order in Council 252/2020, approved and ordered May 19, 2020.

On the recommendation of the undersigned, the Lieutenant Governor, by and with

the advice and consent of the Executive Council, orders that, effective June 1, 2020,

the Property Transfer Tax Regulation, B.C. Reg. 74/88, is amended as set out in the

attached Schedule.

— C. JAMES, Minister of Finance and Deputy Premier ; L. BEARE, Presiding Member of the Executive Council .

Schedule

1 The Property Transfer Tax Regulation, B.C. Reg. 74/88, is amended by adding the

following section:

Exemption for general partner in limited partnership

(1) In this section:

"foreign limited partner" means a limited partner that

(

a) is a foreign entity, or

(

b) holds an interest in the limited partnership in trust for a foreign entity;

"general partner" has the same meaning as in

Part 3 of the Partnership Act ;

"limited partner" has the same meaning as in

Part 3 of the Partnership Act ;

"limited partnership" means a limited partnership

(

a) formed under

section 51 of the Partnership Act , or

(

b) registered under

section 80 of the Partnership Act ;

"profit" includes compensation in the form of income on contributions made by limited partners;

"taxation year" has the same meaning as in

section 249 (1) of the Income Tax Act (Canada).

(2) A transferee who is a general partner in a limited partnership is exempt from

the obligation to pay tax under

section 2.02 (3) (

a) of the Act with respect to the

transferee's proportionate share of a taxable transaction's fair market value if

(

a) the transferee is acquiring the land that is the subject of the taxable transaction

on behalf of the limited partnership, and

(

b) all of the following conditions are met with respect to the limited partnership:

(

i) on the date on which the application for registration of the taxable transaction

is made at a land title office,

(

A) each general partner is a Canadian citizen, a permanent resident of Canada

or a corporation other than a foreign corporation, and

(

B) the combined interest in the limited partnership of all foreign limited partners

accounts for less than half of the entitlement of all partners to share in the profits

of the limited partnership;

(ii) each general partner and limited partner is a resident of Canada for income

tax purposes throughout the taxation year in which the taxable transaction occurs.

(3) An application for an exemption under this

section must

(

a) be in the form required by the administrator, and

(

b) include a consent, in the form required by the administrator, by which the

transferee consents to the administrator conducting inquiries that the administrator

considers necessary to confirm that the transferee qualifies for the exemption.

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