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2015 Legislative Session: 4th Session, 40th Parliament

FIRST READING

The following electronic version is for informational purposes only.

The printed version remains the official version.

HONOURABLE MICHAEL DE JONG

MINISTER OF FINANCE

BILL 10 – 2015

BUDGET MEASURES IMPLEMENTATION ACT, 2015

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

Financial Administration Act

SECTION 1: [Financial Administration Act,

section 21] is consequential to the addition by

this Bill of

section 26.1 to the Act.

Section 21 (2) of the Financial Administration Act, R.S.B.C. 1996, c. 138, is amended by adding " 26.1, " after " 26, ".

SECTION 2: [Financial Administration Act,

section 26.1] authorizes payments out of the

consolidated revenue fund to discharge a liability if the liability is recorded by

the Comptroller General in a fiscal year as having been incurred by the government

in one or more previous fiscal years as a result of an accounting

change that has been applied retroactively in conformity with the applicable

standards and guidelines referred to in

section 23.1 (1) of the Budget Transparency

and Accountability Act .

2 The following

section is added:

Payments to discharge liabilities resulting

from retroactive accounting changes

26.1

(1) A minister may pay out of the consolidated revenue fund money to discharge a liability for which the minister is responsible if both of the following apply:

(

a) the liability is recorded by the Comptroller General in a fiscal year as having been incurred by the government in one or more previous fiscal years;

(

b) the recording of the liability as described in paragraph (

a) is the result of an accounting change that has been applied retroactively in conformity with the applicable standards and guidelines referred to in

section 23.1 (1) of the Budget Transparency and Accountability Act .

(2) Money may be paid out under subsection (1) in the fiscal year in which the liability is recorded as described in subsection (1) (

a) and in any subsequent fiscal year.

(3) Section 21 (3) does not apply to money paid out under this section.

Part 2 – Tax-Related Budget Measures

Carbon Tax Act

SECTION 3: [Carbon Tax Act,

section 1.1] extends the application of the rules established

under this

section of the Act to a sale of imported fuel that occurs after the

imported fuel is released but before or at the time the imported fuel is removed

from the ship or barge on which it entered British Columbia.

Section 1.1 of the Carbon Tax Act, S.B.C. 2008, c. 40, is amended

(

a) in subsection (2) by striking out " before it is released: " and substituting " that occurs either before the imported fuel is released or after the imported fuel is released but before or at the time the imported fuel is removed from the ship or barge on which it entered British Columbia: ", and

(

b) by repealing subsection (4) and substituting the following:

(4) If

(

a) imported fuel is sold either before the imported fuel is released or after the imported fuel is released but before or at the time the imported fuel is removed from the ship or barge on which it entered British Columbia, and

(b) subsection (2) (

a) to (

c) does not, under subsection (3) or the regulations, apply to the sale,

subsection (2) does not apply to any subsequent sale of that fuel.

Income Tax Act

SECTION 4: [Income Tax Act,

section 4.301] increases the BC tax reduction credit.

Section 4.301 of the Income Tax Act, R.S.B.C. 1996, c. 215, is amended

(

a) in the description of "A" by striking out " $360 " and substituting " $432 ", and

(

b) in the description of "B" by striking out " 3.2% " and substituting " 3.5% " and by striking out " $16 000 " and substituting " $19 000 ".

SECTION 5: [Income Tax Act, sections 4.34 and 4.35] updates references to the federal

Act, consistent with amendments made to that Act in respect of the 2015 and

subsequent taxation years.

5 Sections 4.34 (1) and 4.35 (1) are amended by striking out "

section 118.03 (1) of the federal Act. " and substituting "

section 122.8 (1) of the federal Act. "

SECTION 6: [Income Tax Act,

section 4.34] updates references to the federal Act, consistent

with amendments made to that Act in respect of the 2015 and subsequent

taxation years.

Section 4.34 (2) is amended

(

a) by striking out " entitled to a deduction under

section 118.03 of the federal Act " and substituting " deemed to have paid an amount under

section 122.8 of the federal Act ",

(

b) in paragraph (a) (ii) of the description of "B" by striking out "

section 118.03 (2) of the federal Act " and substituting "

section 122.8 (2) of the federal Act " and by striking out " deduction " and substituting " deemed payment ", and

(

c) in paragraph (

b) of the description of "B" by striking out " entitled to a deduction under

section 118.03 (2.1) of the federal Act " and substituting " deemed to have paid an amount under

section 122.8 (3) of the federal Act " and by striking out " a deduction is made " and substituting " the individual is deemed to have paid an amount ".

SECTION 7: [Income Tax Act,

section 4.34] clarifies rules that apply if more than one individual

is deducting amounts for the child fitness credit, including that the individuals

may deduct amounts under this

section only if they are also making deductions under

section 118.03 of the federal Act, and

must make the deductions using the same proportions used under the federal Act.

Section 4.34 (3) is repealed and the following substituted:

(3) If more than one individual is entitled to a deduction under this

section for a taxation year in respect of a qualifying child, the following rules apply to those individuals for that taxation year in respect of that qualifying child:

(

a) the individuals may deduct an amount under this

section only if the individuals deduct an amount under

section 118.03 of the federal Act;

(

b) in respect of those individuals who meet the requirement referred to in paragraph (

a) of this subsection,

(

i) the total of all amounts deducted by the individuals under this

section must not exceed the maximum amount that would be deductible for the year by any one of the individuals if that individual were the only individual entitled to deduct an amount under this section, and

(ii) the amount that is deductible under this

section by any one of the individuals must be determined using the same proportion that, under

section 118.03 (3) of the federal Act, is agreed to by that individual or is fixed for that individual by the federal minister.

SECTION 8: [Income Tax Act,

section 4.34] updates references to the federal Act, consistent

with amendments made to that Act in respect of the 2015 and subsequent

taxation years.

Section 4.34 (3), as enacted by this Act, is amended

(

a) in paragraph (

a) by striking out " deduct an amount under

section 118.03 of the federal Act; " and substituting " are deemed to have paid amounts under

section 122.8 of the federal Act; ", and

(

b) in paragraph (b) (ii) by striking out "

section 118.03 (3) of the federal Act, " and substituting "

section 122.8 (4) of the federal Act, ".

SECTION 9: [Income Tax Act,

section 4.341] establishes a new tax credit for children's fitness

equipment expenses.

9 The following

section is added:

Child fitness equipment credit

4.341 For the purpose of computing the tax payable under this Act for a taxation year by an individual who was resident in British Columbia on the last day of the taxation year and who is entitled to a deduction under

section 4.34 for the year, there may be deducted the amount determined by the following formula:

where

A is the amount deducted by the individual under

section 4.34 for the year.

SECTION 10: [Income Tax Act,

section 4.36] establishes a new BC education coaching tax

credit for teachers and prescribed individuals who meet specified criteria.

10 The following

section is added:

BC education coaching tax credit

4.36

(1) In this section:

"coaching activity" means coaching or supervising students who are participating in an extracurricular activity or program;

"eligible coach" means

(

a) a teacher, or

(

b) an individual in a prescribed class of individuals;

"eligible coaching activity" means a coaching activity that meets the following criteria:

(

a) the individual who is carrying out the coaching activity is an eligible coach;

(

b) the students who are participating in the extracurricular activity or program to which the coaching activity relates are students of a qualifying school;

(

c) the eligible coach is not paid to carry out the coaching activity;

"First Nation land" has the same meaning as in the First Nations Jurisdiction over Education in British Columbia Act (Canada);

"participating First Nation" has the same meaning as in the First Nations Jurisdiction over Education in British Columbia Act (Canada);

"qualifying school" means any of the following:

(

a) a school as defined in the School Act ;

(

b) a francophone school as defined in the School Act ;

(

c) a Provincial school as defined in the School Act ;

(

d) an independent school as defined in the Independent School Act ;

(

f) a school operated by the Nis g a'a Nation, or a treaty first nation, under its own laws;

"teacher" means an individual who is paid to provide an educational program to students of a qualifying school.

(2) An individual is eligible for a deduction under this

section for a taxation year if the individual meets the following criteria:

(

a) the individual is resident in British Columbia on the last day of the taxation year;

(

b) the individual carries out 10 or more hours of eligible coaching activities during the taxation year;

(

c) the individual meets additional criteria that may be established by regulation;

(

d) if requested by the minister, the individual provides information in the form required by the minister to establish the individual's eligibility for the deduction.

(3) For the purpose of computing the tax payable under this Act for a taxation year ending before January 1, 2018 by an individual who is eligible under subsection (2), there may be deducted an amount determined by multiplying $500 by the appropriate percentage for the year.

(4) Without limiting

section 48 (1) and (2), the Lieutenant Governor in Council may make regulations as follows:

(

a) prescribing classes of individuals for the purposes of paragraph (

b) of the definition of "eligible coach" in subsection (1) of this section;

(

b) establishing criteria for the purposes of subsection (2) (

c) of this section.

(5) In making regulations under subsection (4), the Lieutenant Governor in Council may make different regulations for different classes of individuals.

(6) Regulations made under subsection (4) may be made retroactive to January 1, 2015 or a later date, and if made retroactive are deemed to have come into force on the date specified in the regulation.

SECTION 11: [Income Tax Act,

section 4.51] is consequential to the addition by this Bill of

section 4.36 to the Act.

Section 4.51 (2) (

b) and (4) is amended by striking out " 4.35 [child arts credit] " and substituting " 4.35 [child arts credit] , 4.36 [BC education coaching tax credit] ".

SECTION 12: [Income Tax Act, sections 4.51, 4.66, 4.74 and 4.76] is consequential to the

addition by this Bill of

section 4.341 to the Act.

12 Sections 4.51 (2) (

b) and (4), 4.66 (a), 4.74 (

a) and 4.76 (1) (b) (

i) are amended by striking out " 4.34 [child fitness credit] , " and substituting " 4.34 [child fitness credit] , 4.341 [child fitness equipment credit] , ".

SECTION 13: [Income Tax Act,

section 4.52] is consequential to the amendment made by

this Bill to

section 4.301 of the Act.

Section 4.52 (1) (b.1) is amended by striking out " 2005 " and substituting " 2015 ".

SECTION 14: [Income Tax Act,

section 4.62] is consequential to the addition by this Bill of

section 4.341 to the Act.

Section 4.62 is amended

(

a) in subsection (1) (

b) by adding the following subparagraph:

(iii.21)

section 4.341 [child fitness equipment credit] ; , and

(

b) in subsection (2) by adding the following paragraph:

(c.21)

section 4.341 [child fitness equipment credit] ; .

SECTION 15: [Income Tax Act,

section 4.62] is consequential to the addition by this Bill of

section 4.36 to the Act.

Section 4.62 is amended

(

a) in subsection (1) (

b) by adding the following subparagraph:

(iii.4)

section 4.36 [BC education coaching tax credit] ; , and

(

b) in subsection (2) by adding the following paragraph:

(c.4)

section 4.36 [BC education coaching tax credit] ; .

SECTION 16: [Income Tax Act,

section 4.65] is consequential to the addition by this Bill of

section 4.341 to the Act.

Section 4.65 is amended by striking out " 4.34 [child fitness credit] , " in both places and substituting " 4.34 [child fitness credit] , 4.341 [child fitness equipment credit] , ".

SECTION 17: [Income Tax Act, sections 4.65, 4.66, 4.74 and 4.76] is consequential to the

addition by this Bill of

section 4.36 to the Act.

17 Sections 4.65, 4.66 (a), 4.74 (

a) and 4.76 (1) (b) (

i) are amended by striking out " 4.35 [child arts credit] , " wherever it appears and substituting " 4.35 [child arts credit] , 4.36 [BC education coaching tax credit] , ".

SECTION 18: [Income Tax Act,

section 4.721] extends from the end of 2014 to the end of

2015 the expenses that may be claimed in 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 " 2015 " and substituting " 2016 ", and

(

b) in subsection (1.1) by striking out " 2015 " in both places and substituting " 2016 ".

SECTION 19: [Income Tax Act,

section 4.78]

is consequential to the addition by this Bill of

section 4.341 to the Act;

is consequential to the addition by this Bill of

section 4.36 to the Act.

Section 4.78 (2) is amended by adding the following paragraphs:

(c.21)

section 4.341 [child fitness equipment credit] ;

(c.4)

section 4.36 [BC education coaching tax credit] ; .

SECTION 20: [Income Tax Act,

section 4.79]

is consequential to the addition by this Bill of

section 4.341 to the Act;

is consequential to the addition by this Bill of

section 4.36 to the Act.

Section 4.79 (1) is amended by adding the following paragraphs:

(d.21)

section 4.341 [child fitness equipment credit] ;

(d.4)

section 4.36 [BC education coaching tax credit] ; .

SECTION 21: [Income Tax Act,

section 25.1] is consequential to the amendments made by

this Bill to

section 4.721 of the Act.

Section 25.1 (1) is amended

(

a) in paragraph (f.2) (

i) of the definition of "excluded expense" by striking out " January 1, 2015, " and substituting " January 1, 2016, ", and

(

b) in paragraph (f.2) (ii) of the definition of "excluded expense" by striking out " December 31, 2014 and before January 1, 2016 " and substituting " December 31, 2015 and before January 1, 2017 ".

SECTION 22: [Income Tax Act,

section 81.2] expands the current digital animation or visual

effects tax credit to include a tax credit for digital post-production activities in

relation to film or video productions for which principal photography begins

after February 28,

Section 81.2 is amended

(

a) in subsection (1) by striking out " digital animation or visual effects tax credit " in both places and substituting " digital animation, visual effects and post-production tax credit ", and

(

b) by adding the following subsections:

(6) In addition to the tax credits that may be claimed under subsections (2) and (4) but subject to subsection (7), the amount of the tax credit that may be claimed by a qualifying corporation under this

section in respect of an eligible production is 17.5% of the amount determined by the formula

ALE – (TA + PA + ARE)

where

ALE

means the total of the corporation's BC labour expenditure for the taxation year and for each of the preceding taxation years directly attributable to prescribed digital post-production activities for the production,

means the total of all amounts of assistance that can reasonably be considered to be in respect of ALE that, at the time of filing of the corporation's return of income for the taxation year,

(

a) the corporation or any other person or partnership has received, is entitled to receive or can reasonably be expected to receive,

(

b) has not been repaid under a legal obligation to do so, and

(

c) has not otherwise reduced ALE,

means the total of all amounts determined by this formula in respect of the production for each of the preceding taxation years before the end of which principal photography of the production began, and

ARE

means the total of the expenditures directly attributable to the production

(

a) that are included in ALE, and

(

b) for which reimbursement is to be or has been provided to the corporation, as a parent within the meaning of paragraph (

c) of the definition of "BC labour expenditure", in respect of the production under an agreement referred to in that paragraph.

(7) For a qualifying corporation to claim a tax credit in the amount determined under subsection (6) in respect of an eligible production, the following rules apply:

(

a) in addition to the other requirements in subsection (1), principal photography of the production must begin after February 28, 2015;

(

b) the references to "March 31, 1998" in the definition of "BC labour expenditure" in

section 79 (1) must be read as "February 28, 2015".

SECTION 23: [Income Tax Act,

section 82.3] expands the current digital animation or visual

effects production services tax credit to include a tax credit for digital post-

production activities in relation to film or video productions for which principal

photography begins after February 28,

Section 82.3 is amended

(

a) in subsection (1) by striking out " digital animation or visual effects production services tax credit " in both places and substituting " digital animation, visual effects and post-production services tax credit ", and

(

b) by adding the following subsections:

(6) In addition to the tax credits that may be claimed under subsections (2) and (4) but subject to subsection (7), the amount of the tax credit that may be claimed by an accredited production corporation under this

section is 17.5% of the amount of the corporation's accredited qualified BC labour expenditure for the taxation year directly attributable to prescribed digital post-production activities for the accredited production.

(7) For an accredited production corporation to claim a tax credit in the amount determined under subsection (6) in respect of an accredited production, the following rules apply:

(

a) in addition to the other requirements in subsection (1), principal photography of the production must begin after February 28, 2015;

(

b) 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 "February 28, 2015".

SECTION 24: [Income Tax Act,

section 117] extends from the end of 2014 to the end of

2017 the taxation years in respect of which individuals may claim the training

tax credit.

Section 117 is amended by striking out " January 1, 2015. " and substituting " January 1, 2018. "

SECTION 25: [Income Tax Act,

section 121] extends from the end of 2014 to the end of

2017 the applicable period in relation to which employers may claim the training

tax credit.

Section 121 is amended by striking out " December 31, 2014. " and substituting " December 31, 2017. "

SECTION 26: [Income Tax Act,

section 134] extends from the end of August 2015 to the

end of August 2018 the salary and wages that may be claimed in calculating

the interactive digital media tax credit.

Section 134 (2) is amended in paragraph (b) (iii) of the description of "eligible salary and wages" by striking out " September 1, 2015, " and substituting " September 1, 2018, ".

Motor Fuel Tax Act

SECTION 27: [Motor Fuel Tax Act,

section 1] is consequential to the addition by this Bill of

section 5.1 to the Act.

Section 1 of the Motor Fuel Tax Act, R.S.B.C. 1996, c. 317, is amended in the definition of "motive fuel" by striking out " fuel that is taxable under

section 5; " and substituting " coloured fuel; ".

SECTION 28: [Motor Fuel Tax Act,

section 1.1] extends the application of the rules established

under this

section of the Act to a sale of imported fuel that occurs after

the imported fuel is released but before or at the time the imported fuel is

removed from the ship or barge on which it entered British Columbia.

Section 1.1 is amended

(

a) in subsection (2) by striking out " before it is released: " and substituting " that occurs either before the imported fuel is released or after the imported fuel is released but before or at the time the imported fuel is removed from the ship or barge on which it entered British Columbia: ", and

(

b) by repealing subsection (4) substituting the following:

(4) If

(

a) imported fuel is sold either before the imported fuel is released or after the imported fuel is released but before or at the time the imported fuel is removed from the ship or barge on which it entered British Columbia, and

(b) subsection (2) (

a) to (

c) does not, under subsection (3) or the regulations, apply to the sale,

subsection (2) does not apply to any subsequent sale of that fuel.

SECTION 29: [Motor Fuel Tax Act,

section 5]

is consequential to the addition by this Bill of

section 5.1 to the Act;

clarifies that tax is not payable under the

section by a person who uses coloured fuel to operate a ship or locomotive if tax is payable on that fuel under

section 6 (3) of the Act.

Section 5 is amended

(

a) in subsection (1) by striking out " Subject to subsection (1.1), " and substituting " Subject to

section 5.1 and subsection (1.1) of this section, ",

(

b) in subsection (2) by striking out " under this

section " and substituting " under this

section or

section 5.1 ", and

(

c) by adding the following subsection:

(2.1) Subsection (2) does not apply in respect of coloured fuel on which tax is payable under

section 6 (3).

SECTION 30: [Motor Fuel Tax Act,

section 5.1] requires specified purchasers of coloured

fuel to pay the amount of tax that would be payable if the fuel were not

coloured fuel, unless the retail dealer obtains a declaration in the form required

by the director.

30 The following

section is added:

Tax on coloured fuel if declaration not obtained

5.1

(1) Subject to subsection (2), a purchaser who

(

a) purchases coloured fuel from a retail dealer through a cardlock system, or

(

b) purchases more than 45 litres of coloured fuel from a retail dealer

must pay, at the time of purchase, the amount of tax that would be payable on the fuel if that fuel were not coloured fuel, unless the retail dealer obtains from the purchaser, at or before the time of sale, a declaration that the coloured fuel will be used for a purpose authorized under

section 15.

(2) Subsection (1) does not apply if

(

a) the purchaser is a farmer,

(

b) the coloured fuel is marine diesel fuel or locomotive fuel, or

(

c) the coloured fuel

(

i) is transferred by the retail dealer to the supply tank or supplemental supply tank of a ship that is in or on water at the time of transfer, and

(ii) is to be used in the operation of the ship.

(3) The declaration referred to in subsection (1) must be in a form acceptable to the director.

SECTION 31: [Motor Fuel Tax Act, sections 9 and 9.1] provides that the due date for the

payment of tax under the sections and the manner of payment are to be prescribed

by regulation.

31 Sections 9 (2) and 9.1 (3) are amended by striking out " on or before the 15th day of the month following the month in which the natural gas is used, " and substituting " at the prescribed time and in the prescribed manner, ".

SECTION 32: [Motor Fuel Tax Act,

section 15] provides that coloured fuel may be purchased

for use, or may be used, to operate a locomotive.

Section 15 (1) is amended by adding the following paragraph:

(a.1) a locomotive; .

SECTION 33: [Motor Fuel Tax Act,

section 20.11] is consequential to the addition by this

Bill of

section 20.12 to the Act.

Section 20.11 is amended

(

a) in subsections (2) and (3) by striking out " If the director is satisfied that " and substituting " Subject to subsection (3.01), if the director is satisfied that ",

(

b) in subsection (3) 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:

(

d) the person is not a deputy collector or retail dealer to whom a refund is payable under

section 20.12, ,

(

c) by adding the following subsection:

(3.01) A refund is not payable under subsection (2) or (3) in respect of the fuel if,

(

a) in the case of a person who has paid security on fuel and has subsequently coloured and sold that fuel, the person has not complied with sections 14 and 14.1, or

(

b) in the case of a person who has paid security on coloured fuel and has subsequently sold that coloured fuel, the person has not complied with

section 14.1. ,

(

d) in subsection (3.1) by striking out " If the director is satisfied that " and substituting " Subject to subsection (3.2), if the director is satisfied that ", and

(

e) by adding the following subsection:

(3.2) A refund is not payable under subsection (3.1) in respect of the substance if, in the case of a collector, deputy collector or retail dealer who has paid security on the substance and has subsequently coloured that substance, the collector, deputy collector or retail dealer has not complied with

section 16.2.

SECTION 34: [Motor Fuel Tax Act,

section 20.12] requires the director, in specified circumstances,

to pay a refund to deputy collectors and retail dealers who have paid

security on non-coloured fuel and have then coloured and sold that fuel.

34 The following

section is added:

Refund of security on coloured fuel for

deputy collectors and retail dealers

20.12

(1) The director must pay to a deputy collector, from the consolidated revenue fund, a refund in the amount determined under subsection (2) if the director is satisfied that

(

a) the deputy collector has paid security on fuel that was not coloured fuel at the time the deputy collector bought the fuel,

(

b) the deputy collector has coloured the fuel referred to in paragraph (

a) and has sold that coloured fuel,

(

c) the deputy collector, in colouring and selling the fuel referred to in paragraph (a), has complied with sections 14 and 14.1, and

(

d) a refund is not payable under

section 20.11 (2) to the deputy collector.

(2) The amount of the refund payable under subsection (1) is the amount equal to the difference between

(

a) the amount of security the deputy collector paid on the fuel, and

(

b) the amount of security the deputy collector would have been required to pay on the fuel if the rate of tax on that fuel were 3¢ per litre.

(3) The director must pay to a retail dealer, from the consolidated revenue fund, a refund in the amount determined under subsection (4) if the director is satisfied that

(

a) the retail dealer has paid security on fuel that was not coloured fuel at the time the retail dealer bought the fuel,

(

b) the retail dealer has coloured the fuel referred to in paragraph (

a) and has sold that coloured fuel to a purchaser who was liable to pay tax under this Act on that purchase,

(

c) the retail dealer, in colouring and selling the fuel referred to in paragraph (a), has complied with sections 14 and 14.1, and

(

d) in the case of a retail dealer who has sold coloured fuel, other than coloured fuel referred to in

section 5.1 (2) (

b) or (c), to a purchaser, other than a farmer, referred to in

section 5.1 (1) (

a) or (b), the retail dealer

(

i) has obtained from the purchaser, at or before the time of sale, or after the time of sale, the declaration referred to in

section 5.1 (1), or

(ii) has collected from the purchaser the amount of tax imposed under

section 5.1 (1).

(4) The amount of the refund payable under subsection (3) is the amount equal to the difference between

(

a) the amount of security the retail dealer paid on the fuel, and

(

b) the amount of tax the retail dealer received from the purchaser for that fuel.

(5) If a refund is paid under subsection (3) to a retail dealer who has obtained from the purchaser, after the time of sale, the declaration referred to in

section 5.1 (1), the purchaser is deemed to be, at the time of sale, a purchaser who is

(

a) required to pay an amount of tax under

section 5 (1), and

(

b) not required to pay an amount of tax under

section 5.1 (1).

(6) If a deputy collector or retail dealer receives an amount under this

section for a fuel and subsequently receives security or collects tax or an amount as if it were tax on the fuel with respect to which the amount was paid, the deputy collector or retail dealer must pay to the government the amount received or collected on the fuel at the prescribed time and in the prescribed manner.

SECTION 35: [Motor Fuel Tax Act,

section 20.2] is consequential to the addition by this

Bill of

section 20.12 to the Act.

Section 20.2 (1) is amended by striking out " Despite sections 20 (2) and 20.11, " and substituting " Despite sections 20 (2), 20.11 and 20.12, ".

SECTION 36: [Motor Fuel Tax Act,

section 22.1] requires the director to pay a refund to

purchasers of coloured fuel who have paid an amount of tax under

section 5.1

of the Act, as added by this Bill, but have used the coloured fuel for an authorized

purpose.

36 The following

section is added:

Refund to purchaser of coloured fuel who pays tax

under

section 5.1, but uses fuel for authorized purpose

22.1

(1) The director must pay to a purchaser of coloured fuel, from the consolidated revenue fund, a refund in the amount determined under subsection (2) if the director is satisfied that

(

a) the purchaser has paid an amount of tax under

section 5.1 (1) on the coloured fuel,

(

b) the purchaser would not have been required to pay the amount referred to in paragraph (

a) if the retail dealer had obtained from the purchaser, at or before the time of sale, the declaration referred to in

section 5.1 (1), and

(

c) the purchaser has used the coloured fuel for a purpose authorized under

section 15.

(2) The amount of the refund payable under subsection (1) is the amount equal to the difference between

(

a) the amount of tax paid by the purchaser under

section 5.1 (1), and

(

b) the amount of tax that would have been payable by the purchaser under

section 5 if the retail dealer had obtained from the purchaser, at or before the time of sale, the declaration referred to in

section 5.1 (1).

SECTION 37: [Motor Fuel Tax Act,

section 37] is consequential to the addition by this Bill

section 5.1 to the Act.

Section 37 (4) is amended by striking out " 5 (1) and (1.1), " and substituting " 5 (1) and (1.1), 5.1 (1), ".

SECTION 38: [Motor Fuel Tax Act,

section 43] clarifies that the director is not required to

assess a person for the amount of tax payable as a result of an unauthorized use

of coloured fuel if the director is required, in respect of the same fuel, to assess

the person for the amount of tax payable as a result of an unauthorized use of

locomotive fuel.

Section 43 (2) is amended by striking out " the director must " and substituting " the director must, unless subsection (2.01) of this

section applies in respect of the fuel, ".

SECTION 39: [Motor Fuel Tax Act,

section 45.3]

authorizes the director to impose on a person who the director is satisfied purchased or used coloured fuel for an unauthorized purpose

a penalty equal to the greater of the current penalty of 3 times the tax that would have been payable if the fuel had not been coloured fuel and a fixed monetary penalty, in an amount, not to exceed $1 000, determined under the regulations, or

a fixed monetary penalty, in an amount, not to exceed $1 000, determined under the regulations, if the director considers that it is impractical to ascertain the quantity of coloured fuel purchased or used for an unauthorized purpose;

provides for the determination of a separate fixed monetary penalty amount for each vehicle if coloured fuel is purchased or used contrary to

section 15 for the purpose of operating more than one vehicle.

Section 45.3 (1) is repealed and the following substituted:

(1) Subject to subsections (1.1) to (1.3), if the director is satisfied that a person purchased or used coloured fuel contrary to

section 15, the director may impose on the person a penalty equal to the greater of

(

a) the amount that is equal to 3 times the tax that would have been payable on the fuel if it had not been coloured fuel, and

(

b) the amount, not to exceed $1 000, determined under the regulations.

(1.1) For the purposes of determining the amount of the penalty that may be imposed by the director on a person under subsection (1), if the director considers that it is impractical to ascertain the quantity of coloured fuel purchased or used, as the case may be, contrary to

section 15, the amount of the penalty is the amount determined in accordance with subsection (1) (b).

(1.2) If a contravention referred to in subsection (1) continues for more than one day, separate amounts, each not to exceed $1 000, may be determined for the purposes of subsection (1) (

b) for each day the contravention continues.

(1.3) If the director is satisfied that a person referred to in subsection (1) purchased or used coloured fuel contrary to

section 15 for the purpose of operating more than one vehicle, separate amounts, each not to exceed $1 000, may be determined for the purposes of subsection (1) (

b) for each vehicle.

SECTION 40: [Motor Fuel Tax Act,

section 45.3] is consequential to the addition by this

Bill of

section 5.1 to the Act.

Section 45.3 (2) is amended by striking out "

section 5 or 15 (3) " and substituting "

section 5, 5.1 or 15 (3) ".

SECTION 41: [Motor Fuel Tax Act,

section 50] is consequential to the addition by this Bill

section 20.12 to the Act.

Section 50 (1) (

b) is amended by striking out " 20.11, 20.2, " and substituting " 20.11, 20.12, 20.2, ".

SECTION 42: [Motor Fuel Tax Act,

section 64] creates an offence for making false or

deceptive statements in a declaration referred to in

section 5.1 of the Act, as

added by this Bill.

Section 64 (4) is amended by adding the following paragraph:

(a.1) makes or participates in, assents to or acquiesces in the making of a false or deceptive statement in a declaration referred to in

section 5.1 (1); .

SECTION 43: [Motor Fuel Tax Act,

section 71] provides for regulations respecting the

determination of the amount of the fixed monetary penalty that may be

imposed by the director on a person who the director is satisfied has purchased

or used coloured fuel for an unauthorized purpose, including providing for

greater amounts for second or subsequent offences.

Section 71 (2) is amended by adding the following paragraph:

(l.1) in relation to the penalty that may be imposed under

section 45.3 for the purchase or use of coloured fuel contrary to

section 15, respecting the determination of the amount referred to in

section 45.3 (1) (b), including, without limitation, the following:

(

i) prescribing amounts for contraventions of

section 15, including greater amounts for second or subsequent contraventions;

(ii) prescribing a period of time within which a second or subsequent contravention of

section 15 must occur for a greater amount to apply;

(iii) providing that in determining whether a contravention of

section 15 is a second or subsequent contravention, as the case may be, the only question to be considered is the sequence of the imposition of penalties under

section 45.3 and that no consideration may be given to the sequence of the contraventions or whether any contravention occurred before or after the imposition of a penalty;

(iv) establishing formulas that may be applied in determining the amount; .

Provincial Sales Tax Act

SECTION 44: [Provincial Sales Tax Act,

section 1] is consequential to the addition by this

Bill of

section 172.1 to the Act.

Section 1 of the Provincial Sales Tax Act, S.B.C. 2012, c. 35, is amended in paragraph (

b) of the definition of "collector" by striking out " 171 or 172 " and substituting " 171, 172 or 172.1 ".

SECTION 45: [Provincial Sales Tax Act,

section 1] corrects a reference.

Section 1 is amended in paragraph (

h) of the definition of "small seller" by striking out " 170, 171 or 172 " and substituting " 170 or 171 ".

SECTION 46: [Provincial Sales Tax Act,

section 1] amends the definition of "use" to

include the use of tangible personal property that is brought or sent into or

delivered in British Columbia for the sole purpose of being used to make other

tangible personal property that is to be transported outside of British Columbia

for the purpose of fulfilling a contract for the supply and installation of affixed

machinery or improvements to real property situated outside British Columbia.

Section 1 is amended

(

a) in paragraph (a) (

x) and (xii) of the definition of "use" by striking out " brought into British Columbia " and substituting " brought or sent into or delivered in British Columbia ", and

(

b) in paragraph (a) (xi) of the definition of "use" by striking out " brought into British Columbia " and substituting " brought or sent into or delivered in British Columbia " and by adding " other than for the purpose of fulfilling a contract for the supply and installation of affixed machinery or improvements to real property situated outside British Columbia " after " solely outside British Columbia ".

SECTION 47: [Provincial Sales Tax Act,

section 68] repeals the definition of "calculation

year" and amends the definition of "travel ratio", consequential to moving the

determination of that ratio to the regulations.

Section 68 is amended

(

a) by repealing the definition of "calculation year" , and

(

b) in the definition of "travel ratio" by striking out " determined in accordance with

section 69 (4) " and substituting " determined in accordance with the regulations ".

SECTION 48: [Provincial Sales Tax Act,

section 69] repeals the manner of determining the

travel ratio, consequential to changing the manner of that determination and

moving it to the regulations.

Section 69 (4) is repealed.

SECTION 49: [Provincial Sales Tax Act,

section 71] disapplies the

section in relation to tax

imposed under

section 69 on and after January 1, 2015, consequential to

changing the manner of determination of the travel ratio.

Section 71 is amended

(

a) in subsections (1), (2) and (4) by striking out "

section 69 (4) (a) " wherever it appears and substituting "

section 69 (4) (

a) as it read immediately before its repeal ", and

(

b) by adding the following subsection:

(5) This

section does not apply in relation to tax imposed under

section 69 on or after January 1, 2015.

SECTION 50: [Provincial Sales Tax Act,

section 123] increases from 2% to 3% the maximum

rate of tax that may be imposed under the section.

Section 123 (2) is amended by striking out " 2% " and substituting " 3% ".

SECTION 51: [Provincial Sales Tax Act,

section 123.01] provides clarification on the application

of tax under

section 123 of the Act if

accommodation is purchased in an area before the area becomes a designated accommodation area,

accommodation is purchased in a designated accommodation area before the area ceases to be a designated accommodation area, or

accommodation is purchased in a designated accommodation area before a change in the prescribed rate of tax takes effect.

51 The following

section is added:

Transition – application of

section 123 if change

in designation status or tax rate

123.01

(1) If accommodation is purchased in an area before the area becomes a designated accommodation area,

section 123 applies in relation to the purchase, but only in respect of any consideration that

(

a) becomes due on or after the date the area becomes a designated accommodation area, and

(

b) has not been paid before that date.

(2) If accommodation is purchased in a designated accommodation area before the area ceases to be a designated accommodation area,

section 123 applies in relation to the purchase, except in respect of any consideration that

(

a) becomes due on or after the date the area ceases to be a designated accommodation area, and

(

b) has not been paid before that date.

(3) If there is a change in the prescribed rate of tax that applies to accommodation purchased in a designated accommodation area, the new rate of tax applies to accommodation purchased, before the new rate of tax takes effect, in the designated accommodation area, but only in respect of any consideration that

(

a) becomes due on or after the date the new rate of tax takes effect, and

(

b) has not been paid before that date.

SECTION 52: [Provincial Sales Tax Act,

section 124] clarifies that the tax refund under this

section applies in respect of an area that is or has become a designated accommodation

area and amends the end of the

section for consistency with

section

124.01 of the Act, as added by this Bill.

Section 124 (1) is amended

(

a) in paragraph (

a) by striking out " in a designated accommodation area, " and substituting " in an area that is or has become a designated accommodation area, ", and

(

b) by striking out " must refund to the purchaser the tax paid under

section 123 in accordance with subsection (2) of this section. " and substituting " must refund to the purchaser, in accordance with subsection (2), the tax paid under

section 123. "

SECTION 53: [Provincial Sales Tax Act,

section 124.01] provides for a tax refund, in specified

circumstances, if an increase in the prescribed rate of tax takes effect after

a confirmation, contract or deposit is received, entered into or made in relation

to the purchase of accommodation in a designated accommodation area.

53 The following

section is added:

Refund in relation to increase in tax rate

124.01

(1) If the director is satisfied that

(

a) a purchaser purchased accommodation in a designated accommodation area,

(

b) in relation to the purchase, the purchaser

(

i) received a written confirmation of reservation,

(ii) entered into a written contract, or

(iii) made a deposit of money,

(

c) the purchase is for a specified number of days of accommodation that are set out in the confirmation or contract or covered by the deposit, and

(

d) an increase in the prescribed rate of tax that applies to accommodation purchased in the designated accommodation area took effect after the confirmation, contract or deposit was received, entered into or made,

the director must refund to the purchaser, in accordance with subsection (2), the tax paid under

section 123.

(2) The amount of the refund under subsection (1) is equal to the difference between

(

a) the amount of tax paid under

section 123 on the purchase price of the accommodation for each of the specified number of days, and

(

b) the amount of tax that would have been payable under

section 123 on the purchase price of the accommodation for each of the specified number of days had the rate of tax not been increased.

SECTION 54: [Provincial Sales Tax Act,

section 158.1] provides for a refund of tax in relation

to tangible personal property used to make other tangible personal property

that is transported outside of British Columbia for the purpose of fulfilling

a contract for the supply and installation of affixed machinery or improvements

to real property situated outside British Columbia, if sales tax is paid

under the laws of another jurisdiction in respect of the other tangible personal

property.

54 The following

section is added:

Property used to improve real property

situated outside British Columbia

158.1 If the director is satisfied that

(

a) a contractor purchased in British Columbia, brought or sent into British Columbia, or received delivery of in British Columbia, tangible personal property,

(

b) the contractor paid tax under

Part 3 of the Act in respect of the tangible personal property,

(

c) the tangible personal property was processed, fabricated or manufactured into, or attached to or incorporated into, other tangible personal property,

(

d) the contractor shipped the other tangible personal property referred to in paragraph (

c) out of British Columbia for the purpose of fulfilling a contract for the supply and installation of affixed machinery or improvements to real property situated outside British Columbia,

(

e) under the terms of the contract, the other tangible personal property referred to in paragraph (

c) was used so that it ceased to be personal property at common law, and

(

f) the contractor paid sales tax under a law of another jurisdiction in respect of the other tangible personal property referred to in paragraph (

c) and has not obtained and is not entitled to obtain, under that law, a refund of or a credit or rebate for that sales tax,

the director must refund to the contractor the tax paid under

Part 3 of the Act in relation to the tangible personal property referred to in paragraph (a).

SECTION 55: [Provincial Sales Tax Act,

section 168] is consequential to the addition by this

Bill of

section 172.1 to the Act.

Section 168 (1) (

d) is amended by striking out "

section 172 " and substituting "

section 172 or 172.1 ".

SECTION 56: [Provincial Sales Tax Act,

section 172] clarifies several references.

Section 172 is amended

(

a) in subsection (1) (

c) by adding " or provides " after " sells ",

(

b) in subsection (1) (c) (ii) by striking out " sold, " and substituting " sold or provided, ",

(

c) in subsection (1) (c) (iv) by adding " or provided " after " sold ", and

(

d) in subsections (2) and (2.2) by adding " or provides " after " sells ".

SECTION 57: [Provincial Sales Tax Act,

section 172.1]

requires a person who is located outside British Columbia to be registered for the purposes of the Act if the person in the ordinary course of business sells or provides tangible personal property to a person in British Columbia and holds the tangible personal property in inventory in British Columbia at the time it is sold or provided;

provides an exception in the case of a person who sells or provides only tangible personal property that is exempt from tax imposed under the Act.

57 The following

section is added:

Person located outside British Columbia

must be registered

172.1

(1) Subject to subsection (2), a person must be registered under

section 168 at the time the person sells or provides tangible personal property at a retail sale if the person is located outside British Columbia and, in the ordinary course of business, does all of the following:

(

a) accepts orders to purchase tangible personal property, if the orders to purchase originate from locations in British Columbia;

(

b) sells or provides tangible personal property to a person in British Columbia for use or consumption

(

i) by the person,

(ii) by a third person at the expense of the person to whom the property is sold or provided,

(iii) by a principal for whom the person acts as agent, or

(iv) by a third person at the expense of the principal for whom the person to whom the property is sold or provided acts as agent;

(

c) holds the tangible personal property described in paragraph (

b) in inventory in British Columbia at the time the tangible personal property is sold or provided.

(2) Subsection (1) does not apply to a person if the person sells or provides only tangible personal property that is exempt from tax imposed under this Act.

(3) Sections 83 [demand on third party] and 85 [books and records are property of the government] of the Financial Administration Act do not apply to a person who is required under subsection (1) of this

section to be registered under

section 168 of this Act.

SECTION 58: [Provincial Sales Tax Act,

section 174]

corrects a reference;

provides that if a registrant who is required under

section 172 (2.1) to be registered ceases to do all of the activities described in that

section in the ordinary course of business, the registrant must notify the director and the registrant's registration is deemed to be cancelled.

Section 174 is amended

(

a) in subsection (4) by striking out " under

section 172 " and substituting " under

section 172 (1) ", and

(

b) by adding the following subsection:

(4.1) If a registrant who is required under

section 172 (2.1) to be registered ceases to do all of the activities described in

section 172 (2.1) (

a) to (

c) in the ordinary course of business,

(

a) the registrant must notify the director, in a form and manner specified by the director, of the cessation on or before the last day of the month after the month in which the cessation occurred, and

(

b) the registrant's registration is deemed to be cancelled effective on the earlier of

(

i) the date the director receives notification, and

(ii) the last day of the month after the month in which the cessation occurred.

SECTION 59: [Provincial Sales Tax Act,

section 174]

provides that if a registrant who is required under

section 172.1 (1) to be registered ceases to do all of the activities described in that

section in the ordinary course of business, the registrant must notify the director and the registrant's registration is deemed to be cancelled;

provides that a registrant's registration is not cancelled under

section 174 if the registrant is otherwise required under

section 169, 170, 171, 172 or 172.1 to be registered under

section

Section 174 is amended by adding the following subsections:

(4.2) If a registrant who is required under

section 172.1 (1) to be registered ceases to do all of the activities described in

section 172.1 (1) (

a) to (

c) in the ordinary course of business,

(

a) the registrant must notify the director, in a form and manner specified by the director, of the cessation on or before the last day of the month after the month in which the cessation occurred, and

(

b) the registrant's registration is deemed to be cancelled effective on the earlier of

(

i) the date the director receives notification, and

(ii) the last day of the month after the month in which the cessation occurred.

(7) Despite subsections (3) (b), (4) (b), (4.1) (b), (4.2) (

b) and (5) (b), a registrant's registration is not deemed to be cancelled under those subsections if the registrant is otherwise required under

section 169, 170, 171, 172 or 172.1 to be registered under

section 168.

SECTION 60: [Provincial Sales Tax Act,

section 202] provides that the director may impose

a penalty on a person if the director is satisfied that the person wilfully contravened

section 172.1 of the Act.

Section 202 is amended by striking out " 171 [direct seller must be registered] or 172 [person located in Canada but outside British Columbia must be registered] , " and substituting " 171 [direct seller must be registered], 172 [person located in Canada but outside British Columbia must be registered] or 172.1 [person located outside British Columbia must be registered] , ".

SECTION 61: [Provincial Sales Tax Act,

section 238] provides regulation-making authority

to require persons to whose licences a prorating agreement applies to provide the Insurance Corporation of British Columbia with information on distances travelled, and

to provide methods for determining the travel ratio for a multijurisdictional vehicle.

Section 238 is amended by adding the following paragraph:

(d.1) for the purpose of the calculation of tax payable under

section 69 (2) [tax if multijurisdictional vehicle licensed] ,

(

i) requiring a person licensing a vehicle in British Columbia under a licence to which a prorating agreement applies to report to the Insurance Corporation of British Columbia the distance the vehicle travelled, in the calculation year immediately preceding the date the licence is issued, in British Columbia and in each other jurisdiction prescribed for the purposes of

section 70 (2) [when tax under

section 69 must be paid] , and

(ii) prescribing a method for determining the travel ratio for a vehicle; .

SECTION 62: [Provincial Sales Tax Act,

section 240] provides that the Lieutenant Governor

in Council may not amend the rate of tax prescribed in relation to accommodation

purchased in a designated accommodation area unless the amendment is

requested by the designated recipient.

Section 240 is amended

(

a) in subsection (4) by striking out " The Lieutenant Governor in Council may amend, " and substituting " Subject to subsection (4.1), the Lieutenant Governor in Council may amend, ", and

(

b) by adding the following subsection:

(4.1) The Lieutenant Governor in Council may not amend the rate of tax prescribed in relation to accommodation purchased in a designated accommodation area unless the amendment is requested by the designated recipient.

Small Business Venture Capital Act

SECTION 63: [Small Business Venture Capital Act,

section 29.1] extends from the end of

2014 to the end of 2015 the time period in respect of which regulations may be

made to allocate to eligible new corporations a portion of the annual maximum

venture capital tax credit.

Section 29.1 (1) (a.1) of the Small Business Venture Capital Act, R.S.B.C. 1996, c. 429, is amended by striking out " 2014 " and substituting " 2015 ".

Tobacco Tax Act

SECTION 64: [Tobacco Tax Act,

section 11] requires a wholesale dealer to pay security in

respect of tobacco brought or sent into British Columbia by the wholesale

dealer.

Section 11 (1) of the Tobacco Tax Act, R.S.B.C. 1996, c. 452, is amended by adding " brought or sent into British Columbia by the wholesale dealer, or " after " in respect of tobacco ".

SECTION 65: [Tobacco Tax Act,

section 12] is consequential to the amendments made by

this Bill to the regulation-making powers in the Act.

Section 12 (3) is amended by adding " subject to the regulations, " after " under subsection (2), ".

SECTION 66: [Tobacco Tax Act,

section 15] authorizes a collector who pays an amount of

security as required under the Act to deduct from the amount payable and

retain a prescribed allowance.

Section 15 is repealed and the following substituted:

Allowance for collectors

(1) Subject to the regulations, a collector who pays an amount of security as required under this Act in relation to a reporting period may deduct from the amount payable and retain a prescribed allowance for the reporting period.

(2) Despite any other Act, a person retaining an allowance under this

section is not, by retaining the allowance, made ineligible as a member of the Legislative Assembly of British Columbia.

SECTION 67: [Tobacco Tax Act,

section 22] provides for an assessment against a person

who has received a refund of an amount under the Act in excess of the refund

that was due to the person.

Section 22 (2.1) is amended by striking out " received a refund of tax under this Act " and substituting " received a refund of an amount under this Act ".

SECTION 68: [Tobacco Tax Act,

section 26] provides that the process of hearing an appeal

under the Act does not

affect the date of payment, the interest or penalties or any liability for payment under the Act in respect of the amount assessed or imposed that is the subject matter of the appeal, or

delay the collection of the amount assessed or imposed.

Section 26 (1) (

a) and (

b) is repealed and the following substituted:

(

a) affects the date of payment, the interest or penalties or any liability for payment under this Act in respect of the amount assessed or imposed that is the subject matter of the appeal, or

(

b) delays the collection of the amount assessed or imposed.

SECTION 69: [Tobacco Tax Act,

section 34] provides that

the remedies available to the government for the recovery of an amount owing under the Act may be exercised separately, concurrently or cumulatively, and

the liability of a person for payment of an amount owing under the Act is not affected by a fine or penalty imposed or paid by the person for contravention of the Act.

Section 34 is repealed and the following substituted:

Alternative remedies

(1) Remedies available to the government for the recovery of an amount owing under this Act may be exercised separately, concurrently or cumulatively.

(2) The liability of a person for the payment of an amount owing under this Act is not affected by a fine or penalty imposed on or paid by the person for contravention of this Act.

SECTION 70: [Tobacco Tax Act,

section 35] authorizes the director to

impose penalties in respect of a failure to collect, remit or pay tax or pay security as required under the Act, and

assess interest on an amount owing to the government under the Act.

Section 35 (1) and (2) is repealed and the following substituted:

(1) In addition to any other penalty, the director may do any of the following:

(

a) if the director is satisfied that a person who collected tax or received security in respect of tobacco wilfully failed to remit the tax or pay security in respect of the tobacco to the government as required under this Act, impose on the person a penalty equal to 100% of the amount not remitted or paid;

(

b) in any case other than a case referred to in paragraph (a), if the director is satisfied that a person evaded the payment of tax or security to the government as required under this Act by wilfully making a false or deceptive statement or by wilful default or fraud, impose on the person a penalty equal to 25% of the amount evaded;

(

c) in any case other than a case referred to in paragraph (

a) or (b), if the director is satisfied that a person failed to collect any tax or remit or pay any tax or security to the government as required under this Act, impose on the person a penalty equal to 10% of the amount not collected, remitted or paid.

(2) The director may, at any time, assess interest, calculated at the rate and in the manner prescribed, on an amount owing to the government under this Act.

SECTION 71: [Tobacco Tax Act,

section 39] amends the offence provisions under the Act to

provide for offences in relation to a failure to pay security as required under

the Act.

Section 39 is amended

(

a) in subsection (2) by striking out " collect taxes as required by this Act " and substituting " collect or remit tax, or pay security to the government, as required under this Act " and by striking out " the tax that should have been collected, including arrears, penalties and interest, " and substituting " the tax that should have been collected or remitted or the amount of security that should have been paid, including any penalties and interest, ",

(

b) in subsection (4) (

c) by striking out " remittance of tax collected by the person, " and substituting " payment of an amount to be paid or remitted under this Act, ",

(

c) in subsection (4) (

f) by striking out " required by this Act or the regulations; " and substituting " or payment of security required under this Act; ", and

(

d) in subsections (5) (b), (10) and (11) by striking out " tax " wherever it appears and substituting " tax or security ".

SECTION 72: [Tobacco Tax Act,

section 40] provides that in a prosecution for failure to collect,

remit or pay an amount under the Act, the onus is on the accused to prove

that the accused collected the amount or remitted or paid the amount.

Section 40 (1) is repealed and the following substituted:

(1) In a prosecution for failure to collect, remit or pay an amount under this Act, the onus is on the accused to prove that the accused collected the amount or remitted or paid the amount.

SECTION 73: [Tobacco Tax Act,

section 44] authorizes the making of regulations respecting

the payment of additional security by a retail dealer or the payment of a refund of all or a portion of security paid by a retail dealer, in the event of a change in the rate of tax payable by a consumer of tobacco, and

allowances for the purposes of

section 15 of the Act.

Section 44 (2) is amended

(

a) by adding the following paragraph:

(b.1) respecting the payment of additional security by a retail dealer or the payment of a refund of all or a portion of security paid by a retail dealer, in the event of a change in the rate of tax payable by a consumer of tobacco, including, without limitation, the following:

(

i) requiring a retail dealer to provide to the director an inventory of any tobacco in the possession of the retail dealer at the time the change in the rate of tax payable takes effect;

(ii) requiring the payment of additional security by a retail dealer or permitting or requiring the payment of a refund of security paid by a retail dealer;

(iii) establishing circumstances in which additional security must be paid by a retail dealer or a refund of security paid by a retail dealer may or must be paid;

(iv) respecting the amount of the additional security to be paid by a retail dealer or the amount of a refund of security paid by a retail dealer and setting conditions of, or limitations on, the payment of additional security by a retail dealer or the payment of a refund of security paid by a retail dealer;

(

v) in the case of a retail dealer who is required to pay additional security, respecting the deduction of an allowance from the amount payable by the retail dealer, including, without limitation, respecting the amount of an allowance and setting conditions of, or limitations on, the deduction of an allowance; , and

(

b) by repealing paragraph (

c) and substituting the following:

(

c) for the purposes of

section 15, respecting the amount of an allowance and setting conditions of, or limitations on, the deduction of an allowance; .

SECTION 74: [Tobacco Tax Act,

section 44.2] authorizes the director to pay from the consolidated

revenue fund a refund of security paid by a retail dealer if the director

is authorized or required to pay the refund under a regulation made under

section 44 (2) (b.1) of the Act, as added by this Bill.

74 The following

section is added:

Refunds authorized or required under regulations

44.2 The director,

(

a) if authorized by a regulation under

section 44 (2) (b.1), may pay from the consolidated revenue fund a refund of all or a portion of security paid by an applicant for a refund, and

(

b) if required by a regulation under

section 44 (2) (b.1), must pay from the consolidated revenue fund a refund of all or a portion of security paid by an applicant for a refund.

Transitional Provision

SECTION 75: [Provincial Sales Tax Act transition – persons located outside British

Columbia] provides that, during the period after this

section comes into force

and before September 1, 2015, a person referred to in

section 172.1 (1) of the

Provincial Sales Tax Act is deemed to be an applicant for the purposes of

section

168 of that Act.

Provincial Sales Tax Act transition – persons

located outside British Columbia

(1) This

section applies to the period beginning on the date this

section comes into force and ending on September 1, 2015.

(2) A person who is located outside British Columbia and, in the ordinary course of business, does all of the activities described in

section 172.1 (1) (

a) to (

c) of the Provincial Sales Tax Act , as enacted by this Act, is deemed to be an applicant for the purposes of

section 168 of the Provincial Sales Tax Act .

Repeals

Small Business and Revenue Statutes Amendment Act, 2007

SECTION 76: [Small Business and Revenue Statutes Amendment Act, 2007,

section 63] is

consequential to the amendments made by this Bill to

section 35 (2) of the

Tobacco Tax Act .

Section 63 (

b) of the Small Business and Revenue Statutes Amendment Act, 2007, S.B.C. 2007, c. 31, is repealed.

Vancouver Tourism Levy Enabling Act

SECTION 77: [Vancouver Tourism Levy Enabling Act] repeals the Act.

77 The Vancouver Tourism Levy Enabling Act, S.B.C. 2004, c. 29, is repealed.

Commencement

78 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

March 31, 2015

Sections 4 to 6

January 1, 2015

Section 7

January 1, 2012

Sections 8 to 21

January 1, 2015

Sections 22 and 23

March 1, 2015

Sections 24 and 25

January 1, 2015

Section 27

July 1, 2015

Sections 29 and 30

July 1, 2015

Section 31

By regulation of the Lieutenant Governor in Council

Sections 32 to 38

July 1, 2015

Section 39

By regulation of the Lieutenant Governor in Council

Sections 40 to 42

July 1, 2015

Section 43

By regulation of the Lieutenant Governor in Council

Section 44

September 1, 2015

Section 46

February 18, 2015

Sections 47 to 49

By regulation of the Lieutenant Governor in Council, which regulation may be made retroactive to January 1, 2015 and, if made retroactive, sections 47 to 49 are deemed to have come into force on that date and are retroactive to the extent necessary to give them effect on and after that date

Section 51

February 18, 2015

Section 52

April 1, 2013

Section 54

February 18, 2015

Section 55

September 1, 2015

Section 57

September 1, 2015

Sections 59 and 60

September 1, 2015

Section 61

By regulation of the Lieutenant Governor in Council, which regulation may be made retroactive to January 1, 2015 and, if made retroactive,

section 61 is deemed to have come into force on that date and are retroactive to the extent necessary to give them effect on and after that date

Section 64

February 18, 2015

Sections 70 and 71

February 18, 2015

Explanatory Notes

SECTION 1: [Financial Administration Act,

section 21] is consequential to the addition by

this Bill of

section 26.1 to the Act.

SECTION 2: [Financial Administration Act,

section 26.1] authorizes payments out of the

consolidated revenue fund to discharge a liability if the liability is recorded by

the Comptroller General in a fiscal year as having been incurred by the government

in one or more previous fiscal years as a result of an accounting

change that has been applied retroactively in conformity with the applicable

standards and guidelines referred to in

section 23.1 (1) of the Budget Transparency

and Accountability Act .

SECTION 3: [Carbon Tax Act,

section 1.1] extends the application of the rules established

under this

section of the Act to a sale of imported fuel that occurs after the

imported fuel is released but before or at the time the imported fuel is removed

from the ship or barge on which it entered British Columbia.

SECTION 4: [Income Tax Act,

section 4.301] increases the BC tax reduction credit.

SECTION 5: [Income Tax Act, sections 4.34 and 4.35] updates references to the federal

Act, consistent with amendments made to that Act in respect of the 2015 and

subsequent taxation years.

SECTION 6: [Income Tax Act,

section 4.34] updates references to the federal Act, consistent

with amendments made to that Act in respect of the 2015 and subsequent

taxation years.

SECTION 7: [Income Tax Act,

section 4.34] clarifies rules that apply if more than one individual

is deducting amounts for the child fitness credit, including that the individuals

may deduct amounts under this

section only if they are also making deductions under

section 118.03 of the federal Act, and

must make the deductions using the same proportions used under the federal Act.

SECTION 8: [Income Tax Act,

section 4.34] updates references to the federal Act, consistent

with amendments made to that Act in respect of the 2015 and subsequent

taxation years.

SECTION 9: [Income Tax Act,

section 4.341] establishes a new tax credit for children's fitness

equipment expenses.

SECTION 10: [Income Tax Act,

section 4.36] establishes a new BC education coaching tax

credit for teachers and prescribed individuals who meet specified criteria.

SECTION 11: [Income Tax Act,

section 4.51] is consequential to the addition by this Bill of

section 4.36 to the Act.

SECTION 12: [Income Tax Act, sections 4.51, 4.66, 4.74 and 4.76] is consequential to the

addition by this Bill of

section 4.341 to the Act.

SECTION 13: [Income Tax Act,

section 4.52] is consequential to the amendment made by

this Bill to

section 4.301 of the Act.

SECTION 14: [Income Tax Act,

section 4.62] is consequential to the addition by this Bill of

section 4.341 to the Act.

SECTION 15: [Income Tax Act,

section 4.62] is consequential to the addition by this Bill of

section 4.36 to the Act.

SECTION 16: [Income Tax Act,

section 4.65] is consequential to the addition by this Bill of

section 4.341 to the Act.

SECTION 17: [Income Tax Act, sections 4.65, 4.66, 4.74 and 4.76] is consequential to the

addition by this Bill of

section 4.36 to the Act.

SECTION 18: [Income Tax Act,

section 4.721] extends from the end of 2014 to the end of

2015 the expenses that may be claimed in calculating the BC mining flow-

through share tax credit.

SECTION 19: [Income Tax Act,

section 4.78]

is consequential to the addition by this Bill of

section 4.341 to the Act;

is consequential to the addition by this Bill of

section 4.36 to the Act.

SECTION 20: [Income Tax Act,

section 4.79]

is consequential to the addition by this Bill of

section 4.341 to the Act;

is consequential to the addition by this Bill of

section 4.36 to the Act.

SECTION 21: [Income Tax Act,

section 25.1] is consequential to the amendments made by

this Bill to

section 4.721 of the Act.

SECTION 22: [Income Tax Act,

section 81.2] expands the current digital animation or visual

effects tax credit to include a tax credit for digital post-production activities in

relation to film or video productions for which principal photography begins

after February 28, 2015.

SECTION 23: [Income Tax Act,

section 82.3] expands the current digital animation or visual

effects production services tax credit to include a tax credit for digital post-

production activities in relation to film or video productions for which principal

photography begins after February 28, 2015.

SECTION 24: [Income Tax Act,

section 117] extends from the end of 2014 to the end of

2017 the taxation years in respect of which individuals may claim the training

tax credit.

SECTION 25: [Income Tax Act,

section 121] extends from the end of 2014 to the end of

2017 the applicable period in relation to which employers may claim the training

tax credit.

SECTION 26: [Income Tax Act,

section 134] extends from the end of August 2015 to the

end of August 2018 the salary and wages that may be claimed in calculating

the interactive digital media tax credit.

SECTION 27: [Motor Fuel Tax Act,

section 1] is consequential to the addition by this Bill of

section 5.1 to the Act.

SECTION 28: [Motor Fuel Tax Act,

section 1.1] extends the application of the rules established

under this

section of the Act to a sale of imported fuel that occurs after

the imported fuel is released but before or at the time the imported fuel is

removed from the ship or barge on which it entered British Columbia.

SECTION 29: [Motor Fuel Tax Act,

section 5]

is consequential to the addition by this Bill of

section 5.1 to the Act;

clarifies that tax is not payable under the

section by a person who uses coloured fuel to operate a ship or locomotive if tax is payable on that fuel under

section 6 (3) of the Act.

SECTION 30: [Motor Fuel Tax Act,

section 5.1] requires specified purchasers of coloured

fuel to pay the amount of tax that would be payable if the fuel were not

coloured fuel, unless the retail dealer obtains a declaration in the form required

by the director.

SECTION 31: [Motor Fuel Tax Act, sections 9 and 9.1] provides that the due date for the

payment of tax under the sections and the manner of payment are to be prescribed

by regulation.

SECTION 32: [Motor Fuel Tax Act,

section 15] provides that coloured fuel may be purchased

for use, or may be used, to operate a locomotive.

SECTION 33: [Motor Fuel Tax Act,

section 20.11] is consequential to the addition by this

Bill of

section 20.12 to the Act.

SECTION 34: [Motor Fuel Tax Act,

section 20.12] requires the director, in specified circumstances,

to pay a refund to deputy collectors and retail dealers who have paid

security on non-coloured fuel and have then coloured and sold that fuel.

SECTION 35: [Motor Fuel Tax Act,

section 20.2] is consequential to the addition by this

Bill of

section 20.12 to the Act.

SECTION 36: [Motor Fuel Tax Act,

section 22.1] requires the director to pay a refund to

purchasers of coloured fuel who have paid an amount of tax under

section 5.1

of the Act, as added by this Bill, but have used the coloured fuel for an authorized

purpose.

SECTION 37: [Motor Fuel Tax Act,

section 37] is consequential to the addition by this Bill

section 5.1 to the Act.

SECTION 38: [Motor Fuel Tax Act,

section 43] clarifies that the director is not required to

assess a person for the amount of tax payable as a result of an unauthorized use

of coloured fuel if the director is required, in respect of the same fuel, to assess

the person for the amount of tax payable as a result of an unauthorized use of

locomotive fuel.

SECTION 39: [Motor Fuel Tax Act,

section 45.3]

authorizes the director to impose on a person who the director is satisfied purchased or used coloured fuel for an unauthorized purpose

a penalty equal to the greater of the current penalty of 3 times the tax that would have been payable if the fuel had not been coloured fuel and a fixed monetary penalty, in an amount, not to exceed $1 000, determined under the regulations, or

a fixed monetary penalty, in an amount, not to exceed $1 000, determined under the regulations, if the director considers that it is impractical to ascertain the quantity of coloured fuel purchased or used for an unauthorized purpose;

provides for the determination of a separate fixed monetary penalty amount for each vehicle if coloured fuel is purchased or used contrary to

section 15 for the purpose of operating more than one vehicle.

SECTION 40: [Motor Fuel Tax Act,

section 45.3] is consequential to the addition by this

Bill of

section 5.1 to the Act.

SECTION 41: [Motor Fuel Tax Act,

section 50] is consequential to the addition by this Bill

section 20.12 to the Act.

SECTION 42: [Motor Fuel Tax Act,

section 64] creates an offence for making false or

deceptive statements in a declaration referred to in

section 5.1 of the Act, as

added by this Bill.

SECTION 43: [Motor Fuel Tax Act,

section 71] provides for regulations respecting the

determination of the amount of the fixed monetary penalty that may be

imposed by the director on a person who the director is satisfied has purchased

or used coloured fuel for an unauthorized purpose, including providing for

greater amounts for second or subsequent offences.

SECTION 44: [Provincial Sales Tax Act,

section 1] is consequential to the addition by this

Bill of

section 172.1 to the Act.

SECTION 45: [Provincial Sales Tax Act,

section 1] corrects a reference.

SECTION 46: [Provincial Sales Tax Act,

section 1] amends the definition of "use" to

include the use of tangible personal property that is brought or sent into or

delivered in British Columbia for the sole purpose of being used to make other

tangible personal property that is to be transported outside of British Columbia

for the purpose of fulfilling a contract for the supply and installation of affixed

machinery or improvements to real property situated outside British Columbia.

SECTION 47: [Provincial Sales Tax Act,

section 68] repeals the definition of "calculation

year" and amends the definition of "travel ratio", consequential to moving the

determination of that ratio to the regulations.

SECTION 48: [Provincial Sales Tax Act,

section 69] repeals the manner of determining the

travel ratio, consequential to changing the manner of that determination and

moving it to the regulations.

SECTION 49: [Provincial Sales Tax Act,

section 71] disapplies the

section in relation to tax

imposed under

section 69 on and after January 1, 2015, consequential to

changing the manner of determination of the travel ratio.

SECTION 50: [Provincial Sales Tax Act,

section 123] increases from 2% to 3% the maximum

rate of tax that may be imposed under the section.

SECTION 51: [Provincial Sales Tax Act,

section 123.01] provides clarification on the application

of tax under

section 123 of the Act if

accommodation is purchased in an area before the area becomes a designated accommodation area,

accommodation is purchased in a designated accommodation area before the area ceases to be a designated accommodation area, or

accommodation is purchased in a designated accommodation area before a change in the prescribed rate of tax takes effect.

SECTION 52: [Provincial Sales Tax Act,

section 124] clarifies that the tax refund under this

section applies in respect of an area that is or has become a designated accommodation

area and amends the end of the

section for consistency with

section

124.01 of the Act, as added by this Bill.

SECTION 53: [Provincial Sales Tax Act,

section 124.01] provides for a tax refund, in specified

circumstances, if an increase in the prescribed rate of tax takes effect after

a confirmation, contract or deposit is received, entered into or made in relation

to the purchase of accommodation in a designated accommodation area.

SECTION 54: [Provincial Sales Tax Act,

section 158.1] provides for a refund of tax in relation

to tangible personal property used to make other tangible personal property

that is transported outside of British Columbia for the purpose of fulfilling

a contract for the supply and installation of affixed machinery or improvements

to real property situated outside British Columbia, if sales tax is paid

under the laws of another jurisdiction in respect of the other tangible personal

property.

SECTION 55: [Provincial Sales Tax Act,

section 168] is consequential to the addition by this

Bill of

section 172.1 to the Act.

SECTION 56: [Provincial Sales Tax Act,

section 172] clarifies several references.

SECTION 57: [Provincial Sales Tax Act,

section 172.1]

requires a person who is located outside British Columbia to be registered for the purposes of the Act if the person in the ordinary course of business sells or provides tangible personal property to a person in British Columbia and holds the tangible personal property in inventory in British Columbia at the time it is sold or provided;

provides an exception in the case of a person who sells or provides only tangible personal property that is exempt from tax imposed under the Act.

SECTION 58: [Provincial Sales Tax Act,

section 174]

corrects a reference;

provides that if a registrant who is required under

section 172 (2.1) to be registered ceases to do all of the activities described in that

section in the ordinary course of business, the registrant must notify the director and the registrant's registration is deemed to be cancelled.

SECTION 59: [Provincial Sales Tax Act,

section 174]

provides that if a registrant who is required under

section 172.1 (1) to be registered ceases to do all of the activities described in that

section in the ordinary course of business, the registrant must notify the director and the registrant's registration is deemed to be cancelled;

provides that a registrant's registration is not cancelled under

section 174 if the registrant is otherwise required under

section 169, 170, 171, 172 or 172.1 to be registered under

section 168.

SECTION 60: [Provincial Sales Tax Act,

section 202] provides that the director may impose

a penalty on a person if the director is satisfied that the person wilfully contravened

section 172.1 of the Act.

SECTION 61: [Provincial Sales Tax Act,

section 238] provides regulation-making authority

to require persons to whose licences a prorating agreement applies to provide the Insurance Corporation of British Columbia with information on distances travelled, and

to provide methods for determining the travel ratio for a multijurisdictional vehicle.

SECTION 62: [Provincial Sales Tax Act,

section 240] provides that the Lieutenant Governor

in Council may not amend the rate of tax prescribed in relation to accommodation

purchased in a designated accommodation area unless the amendment is

requested by the designated recipient.

SECTION 63: [Small Business Venture Capital Act,

section 29.1] extends from the end of

2014 to the end of 2015 the time period in respect of which regulations may be

made to allocate to eligible new corporations a portion of the annual maximum

venture capital tax credit.

SECTION 64: [Tobacco Tax Act,

section 11] requires a wholesale dealer to pay security in

respect of tobacco brought or sent into British Columbia by the wholesale

dealer.

SECTION 65: [Tobacco Tax Act,

section 12] is consequential to the amendments made by

this Bill to the regulation-making powers in the Act.

SECTION 66: [Tobacco Tax Act,

section 15] authorizes a collector who pays an amount of

security as required under the Act to deduct from the amount payable and

retain a prescribed allowance.

SECTION 67: [Tobacco Tax Act,

section 22] provides for an assessment against a person

who has received a refund of an amount under the Act in excess of the refund

that was due to the person.

SECTION 68: [Tobacco Tax Act,

section 26] provides that the process of hearing an appeal

under the Act does not

affect the date of payment, the interest or penalties or any liability for payment under the Act in respect of the amount assessed or imposed that is the subject matter of the appeal, or

delay the collection of the amount assessed or imposed.

SECTION 69: [Tobacco Tax Act,

section 34] provides that

the remedies available to the government for the recovery of an amount owing under the Act may be exercised separately, concurrently or cumulatively, and

the liability of a person for payment of an amount owing under the Act is not affected by a fine or penalty imposed or paid by the person for contravention of the Act.

SECTION 70: [Tobacco Tax Act,

section 35] authorizes the director to

impose penalties in respect of a failure to collect, remit or pay tax or pay security as required under the Act, and

assess interest on an amount owing to the government under the Act.

SECTION 71: [Tobacco Tax Act,

section 39] amends the offence provisions under the Act to

provide for offences in relation to a failure to pay security as required under

the Act.

SECTION 72: [Tobacco Tax Act,

section 40] provides that in a prosecution for failure to collect,

remit or pay an amount under the Act, the onus is on the accused to prove

that the accused collected the amount or remitted or paid the amount.

SECTION 73: [Tobacco Tax Act,

section 44] authorizes the making of regulations respecting

the payment of additional security by a retail dealer or the payment of a refund of all or a portion of security paid by a retail dealer, in the event of a change in the rate of tax payable by a consumer of tobacco, and

allowances for the purposes of

section 15 of the Act.

SECTION 74: [Tobacco Tax Act,

section 44.2] authorizes the director to pay from the consolidated

revenue fund a refund of security paid by a retail dealer if the director

is authorized or required to pay the refund under a regulation made under

section 44 (2) (b.1) of the Act, as added by this Bill.

SECTION 75: [Provincial Sales Tax Act transition – persons located outside British

Columbia] provides that, during the period after this

section comes into force

and before September 1, 2015, a person referred to in

section 172.1 (1) of the

Provincial Sales Tax Act is deemed to be an applicant for the purposes of

section

168 of that Act.

SECTION 76: [Small Business and Revenue Statutes Amendment Act, 2007,

section 63] is

consequential to the amendments made by this Bill to

section 35 (2) of the

Tobacco Tax Act .

SECTION 77: [Vancouver Tourism Levy Enabling Act] repeals the Act.

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c) Queen’s Printer, Victoria, British Columbia, Canada