British Columbia Order in Council — Order under Income Tax B (O.C. 1685/2000)

O.C. 1685/2000

British Columbia — Orders in Council

a PROVINCE OF BRITISH COLUMBIA ORDER OF THE LIEUTENANT GOVERNOR IN COUNCIL Order in Council No.— 1685 Approved and Ordered DEC — 7 2000 r AdmInistratos Executive Council Chambers, Victoria toidnrintsfrols On the recommendation of the undersigned, the MOW—naiiir, by and with the advice and consent of the Executive Council, orders that the Income Tax Regulation, B.C. Reg. 594/79, is repealed and the attached Source Deduction Regulation is made. Minister of Finance and Corpor. e Relations siding Member of the Executive Council (This

part is fior administrative purposes only and is not part of the Order) Authority under which Order is made: Act and section:- Income Tax Act, R.S.B.C. 1996, c. 215, s. 48 Other (specify):- oic 3189/79 November 3, 2000 /2000/16

SOURCE DEDUCTION REGULATION Contents 1

Interpretation 2 Deduction and remittance 3 Regular remuneration 4 Commissions and salary or wages combined 5 EVCC shares 6 Bonuses, retroactive increases and lump sum payments 7 When deductions are not required 8 Application of other provisions of federal regulations

Interpretation 1

(1) In this regulation: "employee" means a person receiving remuneration who reports for work at an employer's establishment in British Columbia; "employer", "estimated deductions", "pay period", "personal credits", "remuneration" and "total remuneration" each has the same meaning as in

section 100 of the federal regulations; "federal regulations" means the Income Tax Regulations under

section 221 (1) of the federal Act, as amended from time to time; "year" means a calendar year.

(2) For the purposes of this regulation,

section 100 (2) to (4) of the federal regulations applies.

(3) A reference in this regulation to a provision of the federal regulations referred to in subsection (2) or in

section 8 (1) is a reference to that provision of the federal regulations as it applies for the purposes of this regule :ion. Deduction and remittance 2 Every person who makes a payment described in

section 153 (1) of the federal Act, as that

section applies for the purposes of the Income Tax Act (British Columbia), to an employee must deduct or withhold from that payment, and remit to the Receiver General of Canada, the amount, if any, that is determined under this regulation. Regular remuneration 3 (

I) Subject to subsection (2) and sections 4 to 7 and to sections 106 and 109 of the federal regulations, the amount to be deducted or withheld under

section 2 of this regulation for a pay period in which the employer makes a payment of remuner- ation to an employee is I of 5

(

a) the amount determined by the formula 49.5% x the notional federal tax A plus (

b) if 49.5% of the notional federal tax exceeds $5 300, the amount determined by the formula 30% x [13 - $5 300] A plus (

c) if 49.5% of the notional federal tax exceeds $8 660, the amount determined by the formula 15% x [B - $8 660] A where A is the maximum number of such pay periods in the year, and B is 49.5% of the notional federal tax.

(2) The amount determined under subsection (1) must be rounded to the nearest multiple of one dollar or, if the amount determined under subsection (1) is equidistant from 2 such consecutive multiples, to the higher multiple.

(3) In this section, "notional federal tax" means the notional tax for the year calculated under

section 102 (1) (

e) of the federal regulations. Commissions and salary or wages combined 4

(1) Subject to sections 5 to 7 of this regulation and to sections 102 (5), 106 and 109 of the federal regulations, if an employee has made an election under

section 107 (2) of the federal regulations and has not revoked that election, the amount to be deducted or withheld under

section 2 of this regulation by the employer from any payment of remuneration to the employee that is for (

a) commissions or commissions and salary or wages combined, or (

b) salary or wages, if the employee is remunerated by commissions and salary or wages combined, is (c) 49.5% of the amount that would be determined under

section 102 (2) (

h) of the federal regulations if the employee's notional tax for the year were calculated under

section 102 (2) (1) of the federal regulations without reference to elements F, G and H of the formula in the latter provision, plus (

d) if 49.5% of the notional federal tax exceeds $5 300, the amount determined by the formula 30% x [C - $5 300] x D page 2 of 5

plus (

e) if 49.5% of the notional federal tax exceeds $8 660, the amount determined by the formula 15% x [C - $8 660] x D where C is 49.5% of the notional federal tax, and D is the amount determined under paragraph (c).

(2) In this section, "notional federal tax" means the notional tax for the year calculated under

section 102 (2) (

f) of the federal regulations but without reference to elements F, G and H of the formula in that provision. EVCC shares 5

(1) If in any year an employer deducts from a payment of remuneration to an employee an amount in respect of the acquisition by that employee of an EVCC share, there is to be deducted from the amount determined under

section 3 (1) or 4 (1), as the case may be, the smaller of (a) 15% of the amount deducted or withheld in respect of the acquisition of the share, and (

b) the amount determined by the formula A -- B where A is $2 000, and B is the total of all deductions made under this subsection in respect of prior pay periods in that year.

(2) In this section, "EVCC share" means a share of a corporation registered under

Part 2 of the Employee Investment Act as an employee venture capital corpo- ration. Bonuses, retroactive increases and lump sum payments 6

(1) If in any year a payment for a bonus or retroactive increase in remuneration is made by an employer to an employee whose total remuneration from the employer, including the bonus or retroactive increase, may reasonably be expected not to exceed $5 000 in that year, the amount to be deducted or withheld under

section 2 by the employer from the payment is 99/299 of 15% of the payment.

(2) If, in any pay period in a year, a payment for a bonus is made by an employer to an employee whose total remuneration from the employer, including the bonus, may reasonably be expected to exceed $5 000 in that year, the amount to be deducted or withheld under

section 2 by the employer from the payment is the amount determined by the formula Ax [B page 3 of 5

where A is the maximum number of such pay periods in that year, B is the amount determined under

section 3 for an assumed remuneration equal to the sum of (

a) the amount of regular remuneration paid by the employer to the employee in the pay period in which the bonus payment is made, and (

b) an amount equal to the bonus payment divided by the number of pay periods in that year, and C is the amount determined under

section 3 in respect of the amount of regular remuneration paid by the employer to the employee in the pay period in which the payment is made.

(3) If in any year a payment for a retroactive increase in remuneration is made by an employer to an employee whose total remuneration from the employer, including the retroactive increase, may reasonably be expected to exceed $5 000 in that year, the amount to be deducted or withheld under

section 2 by the employer from the payment is the amount determined by the formula D x [E - where D is the number of pay periods for which the increase in remuneration is retro- active, E is the amount determined under

section 3 for the new rate of remuneration, and F is the amount determined under

section 3 for the previous rate of remuneration.

(4) Subject to

section 103 (5) of the federal regulations, if a lump sum payment as defined in

section 103 (6) of the federal regulations is made by an employer to an employee who is a resident of Canada, the amount to be deducted or withheld under

section 2 of this regulation by the employer from the payment is as follows: (a) 99/299 of 10% of the payment, if the payment does not exceed $5 000; (b) 99/299 of 20% of the payment, if the payment exceeds $5 000 but does not exceed $15 000; (c) 99/299 of 30% of the payment, if the payment exceeds $15 000. When deductions are not required 7 No amount is required to he deducted or withheld under this regulation from a payment in respect of an employee who was neither employed nor resident in Canada at the time of the payment, except in respect of (

a) remuneration described in

section 115 (2) (e) (

i) of the federal Act that is paid to a non-resident person who has in the year in which the payment is made, or who had in any previous year, ceased to be a resident of Canada, or (

b) remuneration reasonably attributable to the duties of any office or employment performed or to be performed in Canada by the non-resident person. page 4 of 5

Application of other provisions of federal regulations 8

(1) The following provisions of the federal regulations apply for the purposes of this regulation: (a)

section 102 (5) [previously reported commissions]; (b)

section 103 (5) [pension income eligible for pension credit]; (c)

section 104 (3), (3.01), (3.1) and (4) [payments out of or under an RRSP during lifetime of annuitant]; (

d) section 104.1 [lifelong learning plan]; (

e) section 106 [variations in deductions]; (

f) section 107 [employees' returns]; (

g) section 108 [remittances. to Receiver General]• (

h) section 109 [elections to increase deductions]; (

i) section 110 [prescribed persons for purposes of remittances].

(2) Section 100 (5) of the federal regulations does not apply for the purposes of this regulation. page 5 of 5

Document details

Collection	British Columbia — Orders in Council
Citation	O.C. 1685/2000
Type	order_in_council
Volume / chapter	arc oic 1685 2000
Language	en
Format	pdf
Source	PROVINCIAL
Identifier	5d04d24b36b9f6b3cb551e2e2c12178dea9470c4

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