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1996 Legislative Session: 1st Session, 36th Parliament

THIRD READING

The following electronic version is for informational purposes only.

The printed version remains the official version.

Certified correct as passed Third Reading on the 15th day of July, 1996

Ian D. Izard, Law Clerk

MINISTER OF FINANCE AND CORPORATE

RELATIONS AND MINISTER RESPONSIBLE

FOR INTERGOVERNMENTAL AFFAIRS

BILL 6 – 1996

INCOME TAX AMENDMENT ACT (No. 2), 1996

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

Section 4.3 (3) (

c) and (4) (

c) of the Income Tax Act, R.S.B.C.

1979, c. 190, is repealed.

2 The following sections are added:

Definitions for BC Family Bonus

4.4

(1) In

section 4.5, "adjusted income" , "base taxation year" , "cohabiting spouse" , "eligible individual" , "qualified dependant" and "return of income" have the same meanings as in

section 122.6 of the federal Act.

(2) Section 1 (7) (

h) of this Act does not change a reference to Canada in the definition of "eligible individual" or in

section 122.61 (3) (

a) of the federal Act, as those provisions apply for the purposes of

section 4.5 of this Act, to a reference to British Columbia.

BC Family Bonus

4.5

(1) Despite

section 2, an overpayment on account of a person's liability under this Act for a taxation year is deemed to have arisen during a month in relation to which the year is the base taxation year where

(

a) the person and, if the Provincial minister so demands, the person's cohabiting spouse at the end of the taxation year have filed a return of income for that year, and

(

b) the person was resident in British Columbia for a period that commenced before the first day of the month and that includes that day.

(2) Where a person who was resident in British Columbia during the period referred to in subsection (1) (

b) was also resident outside British Columbia during that period, an overpayment that would otherwise be deemed to have arisen during the month referred to in that subsection is deemed to arise only if

(

a) the person was present in British Columbia for a period of at least 14 days during that month, or

(

b) the person comes within a class of persons exempted by regulation from the requirement to be present in British Columbia for the period referred to in paragraph (a).

(3) The overpayment deemed to have arisen during a month under subsection (1) in respect of the person's liability under this Act for a taxation year is equal to,

(

a) if the person's adjusted income for that year does not exceed $18 000, the amount determined by multiplying $103 by the number of qualified dependants in respect of whom the person was an eligible individual at the beginning of that month, and

(

b) if the person's adjusted income for that year exceeds $18 000, the amount determined by the formula

($103 x

N) – (P ÷ 12)

where

N is the number of qualified dependants in respect of whom the person was an eligible individual at the beginning of that month, and

P is

(i) 8% of the amount by which the person's adjusted income for that year exceeds $18 000, if the person was at the beginning of that month an eligible individual in respect of only one qualified dependant, or

(ii) 16% of the amount by which the person's adjusted income for that year exceeds $18 000, if the person was at the beginning of that month an eligible individual in respect of more than one qualified dependant.

(4) Despite subsections (1) to (3) of this section,

section 122.61 (2) of the federal Act applies for the purposes of this

section and

section 122.61 (3) (

a) of that Act applies for the same purposes.

Notice requirements and other rules

about eligible individuals and spouses

4.6

(1) Section 122.62 (1), (2), (4) and (5) of the federal Act applies for the purposes of

section 4.5 of this Act.

(2) For the purpose of determining the amount deemed under

section 4.5 to be an overpayment on account of a person's liability under this Act,

(

a) section 122.62 (6) of the federal Act applies in the circumstances set out in that subsection, and

(

b) section 122.62 (7) of the federal Act applies in the circumstances set out in that subsection.

BC Family Bonus cannot be attached or assigned

4.7 A refund of an amount deemed by

section 4.5 to be an overpayment on account of a person's liability under this Act for a taxation year

(

a) cannot be charged or given as security,

(

b) cannot be assigned except under a prescribed Act,

(

c) cannot be garnished or attached,

(

d) is exempt from execution or seizure, and

(

e) cannot be retained by way of deduction or set-off under the Financial Administration Act .

BC Family Bonus regulations and forms

4.8

(1) The Lieutenant Governor in Council may make regulations for the purposes of sections 4.5 to 4.7, including regulations

(

a) specifying additional provisions of the federal Act that apply for the purposes of those sections,

(

b) exempting, for the purposes of

section 4.5 (2) (b), classes of persons from the requirement to be present in British Columbia, and

(

c) prescribing enactments for the purposes of sections 4.7 (b).

(2) Subsection (1) (

a) is repealed 2 years after it comes into force.

(3) The Provincial minister may specify forms that are to be used for the purposes of sections 4.5 to 4.7.

Section 12 is amended by adding ", (1.2)" after

"Sections 150, 151, 152 (1)" .

Section 13 is amended by adding the following subsection:

(1.1) Notwithstanding that the normal reassessment period for a taxpayer in respect of a taxation year has elapsed, the Provincial minister may redetermine the amount, if any, deemed under

section 4.5 to be an overpayment on account of the taxpayer's liability for tax for that year.

Section 19 is amended by striking out "160.1 (1)," and

substituting "160.1 (1), (2.1) and (3)," .

Section 26 (2) (

a) is amended

(

a) by repealing subparagraph (

i) and substituting the following:

(

i) the individual's residency for the purposes of

section 2,

section 4.5 or any other provision of this Act; , and

(i.1) the individual's presence in British Columbia for the purposes of

section 4.5 (2);

(i.2) the amount that, by

section 122.62 (6) or (7) of the federal Act as it applies for the purposes of

section 4.5 of this Act, is deemed to be the individual's adjusted income; .

(

b) by adding the following subparagraphs:

Transitional regulations

7 A regulation under

section 4.8 (1) of the Income Tax Act that

is made before July 1, 1997, may be made retroactive to any date after June

30, 1996 and, if made retroactive, is deemed to have come into force on the

date specified.

Transitional year

(1) Section 4.5 of the Income Tax Act , as enacted by this Act,

applies in respect of overpayments deemed to have arisen during any month of

1996, after June 1996, on account of the liability under the Income Tax Act

of persons who have filed returns of income for the 1995 taxation year.

(2) For the purpose of giving effect on July 1, 1996 to sections 4.4 to 4.7 of the Income Tax Act , as enacted by this Act,

(

a) the Minister of Social Services may disclose to the Provincial minister information obtained under the Guaranteed Available Income for Need Act relating to applicants or recipients under that Act who are eligible individuals or qualified dependants as defined in

section 4.4 of the Income Tax Act , and

(

b) the Provincial minister may disclose to the Minister of Social Services information obtained under the Income Tax Act relating to applicants or recipients under the Guaranteed Available Income For Need Act who are eligible individuals or qualified dependants as defined in

section 4.4 of the Income Tax Act ,

even though an information-sharing agreement about that information is not in effect when the information is disclosed.

(3) Information that was disclosed after January 1, 1996 and before December 1, 1996 and that would have been validly disclosed had subsection (2) been in force when the information was disclosed is deemed, for the purposes of the Freedom of Information and Protection of Privacy Act , to have been disclosed in accordance with

section 33 of that Act.

(4) Section 50 (1) of the Income Tax Act does not apply to information

(

a) disclosed in accordance with subsection (2) of this section, or

(

b) deemed under subsection (3) of this

section to have been disclosed in accordance with

section 33 of the Freedom of Information and Protection of Privacy Act .

(5) Subsection (2) is repealed on November 30, 1996.

Commencement

(1) Section 1 is deemed to have come into force on January 1, 1996

and is retroactive to the extent necessary to give it effect on and after that

date.

(2) Sections 2 and 8 are deemed to have come into force on July 1, 1996 and are retroactive to the extent necessary to give them effect on and after that date.

Copyright © 1996: Queen's Printer, Victoria, British Columbia, Canada