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Volume 58, No. 11

94/2015

The British Columbia Gazette,

Part II

June 2, 2015

B.C. Reg. 94/2015 , deposited May 25, 2015, under the TOBACCO TAX ACT [section 44]. Order in Council 275/2015, approved and ordered May 22, 2015.

On the recommendation of the undersigned, the Lieutenant Governor, by and with the advice and consent of the Executive Council, orders that the Tobacco Tax Act Regulation, B.C. Reg. 66/2002, is amended as set out in the attached Schedule.

— M. DE JONG, Minister of Finance ; M. STILWELL, Presiding Member of the Executive Council .

Schedule

1 Sections 14 and 15 of the Tobacco Tax Act Regulation, B.C. Reg. 66/2002, are repealed and the following substituted:

Collector’s allowance

(1) Subject to subsection (6), the amount of the allowance that may be retained under

section 15 of the Act is

(a) 3% of the first $10 000 of security paid to the director as required under the Act for the reporting period, and

(b) 0.375% of the amount of security over $10 000 paid to the director as required under the Act for the reporting period.

(2) The allowance retained under subsection (1) must not exceed $10 000 for each successive 12 month period commencing,

(

a) in the case of a collector who had a place of business in operation on July 29, 1983, with the date the return is filed in respect of July in any year, or

(

b) in the case of a collector who did not have a place of business in operation on July 29, 1983, with the date the return is filed in respect of the first month of operation in any year.

(3) Subsections (1) and (2) apply to the total amount of security paid by a collector for a reporting period regardless of

(

a) the number of dealer’s permits held by the collector in the reporting period, or

(

b) the number of times the collector pays security in respect of one reporting period.

(4) Despite subsection (1), but subject to subsections (5) and (6), a wholesale dealer who is a collector and paying an amount under

section 11 (5) (

a) of the Act may deduct from the amount payable, and retain, an allowance equal to 5% of the difference between the amount referred to in

section 11 (5) (a) (

i) of the Act in respect of the tobacco and the amount of security the wholesale dealer was previously required to pay in respect of that tobacco.

(5) A wholesale dealer must not deduct, or retain, an allowance under subsection (4) unless the wholesale dealer is providing with the amount required under

section 11 (5) (

a) of the Act in respect of the tobacco, or has previously provided, to the director the inventory required under

section 11 (5) of the Act in respect of that tobacco.

(6) A collector must not deduct, or retain, an allowance under this

section for a reporting period if the collector does not pay security for the reporting period as and in the amount required under the Act, less the amount of any allowances under this section.

Tax rate change and payment of security

(1) If some or all of the tobacco in respect of which a retail dealer was required to pay security under

section 12 of the Act is in the possession of the retail dealer at the time that a change in the rate of tax payable by a consumer of that tobacco takes effect, the retail dealer must provide to the director an inventory of that tobacco.

(2) If the rate of tax for tobacco increases, a retail dealer who is required to provide an inventory under subsection (1) must pay as security to the director, within the time required by the director, an amount equal to the difference between the following:

(

a) the amount of tax that would be collectable in respect of the tobacco included in the inventory if the tobacco were sold to a consumer;

(

b) the amount paid by the retail dealer as security in respect of that tobacco.

(3) If the rate of tax for tobacco decreases, a retail dealer may apply to the director for a refund in an amount equal to the difference between the amount referred to in subsection (2) (

b) and the amount referred to in subsection (2) (a).

(4) On application under subsection (3) by a retail dealer, the director must pay to the retail dealer a refund in the amount referred to in that subsection.

(5) Subject to subsection (6), a retail dealer who is paying an amount under subsection (2) may deduct from the amount payable, and retain, an allowance equal to 5% of the difference between the amount referred to in subsection (2) (

a) in respect of the tobacco and the amount of security the retail dealer was previously required to pay in respect of that tobacco.

(6) A retail dealer must not deduct, or retain, an allowance under subsection (5) unless the retail dealer

(

a) is providing with the amount required under subsection (2), or has previously provided, to the director the inventory required under subsection (1) in respect of the tobacco, and

(

b) pays security as and in the amount required under subsection (2), less the amount of the allowance under subsection (5).

Section 18 (1) is amended by striking out “ will allow for the accurate determination of the tax collectable under the Act. ” and substituting “ allows for the accurate determination of the amount of tax to be collected and remitted, or the amount of security to be paid, under the Act. ”

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