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2001 Legislative Session: 5th Session, 36th Parliament

FIRST READING

The following electronic version is for informational

purposes only.

The printed version remains the official version.

HONOURABLE PAUL RAMSEY

MINISTER OF FINANCE AND

CORPORATE RELATIONS AND

MINISTER RESPONSIBLE FOR

NORTHERN DEVELOPMENT

BILL 3 – 2001

INCOME TAX AMENDMENT ACT, 2001

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

1 The Income Tax Act, R.S.B.C. 1996, c. 215, is amended by adding the following section:

Refundable energy credit

7.1

(1) In this section:

"eligible individual" does not include an individual who dies before April 1, 2001;

"return of income" means a return of income required to be filed under

section 150 of the federal Act as it applies for the purposes of this Act;

"qualified dependant" and "qualified relation" have the same meanings as in

section 122.5 of the federal Act.

(2) As an exception to

section 2, an amount is deemed to be an overpayment made by an eligible individual on May 1, 2001 on account of the individual's liability under this Act for the 1999 taxation year if

(

a) the individual has filed or files before August 1, 2001 a return of income for the 1999 taxation year,

(

b) any amount is deemed under

section 122.5 of the federal Act to be an amount paid by the individual on account of the individual's tax payable under

Part 1 of the federal Act for the 1999 taxation year during any of the months specified for that year under

section 122.5 (4) of the federal Act, and

(

c) the individual was resident in British Columbia throughout the period beginning on December 30, 2000 and ending on March 31, 2001.

(3) Despite subsection (2), a person is deemed not to be an eligible individual for the purposes of this

section if the person was, at the end of the 2000 taxation year, confined to a prison or similar institution and had been so confined for a period of 6 months or for periods the total of which in that year was more than 6 months.

(4) The amount deemed by subsection (2) to be an overpayment by an eligible individual is as follows:

(a) $100, if the eligible individual had a qualified relation or a qualified dependant for the 1999 taxation year;

(b) $50, in any other case.

(5) Despite subsection (1), a person is deemed not to be a qualified relation or a qualified dependant of an eligible individual for the purposes of subsection (4) if the person was, at the end of either the 1999 taxation year or the 2000 taxation year, confined to a prison or similar institution and had been so confined for a period of 6 months or for periods the total of which in that year was more than 6 months.

(6) A refund of an amount deemed by subsection (2) to be an overpayment

(

a) cannot be charged or given as security,

(

b) cannot be assigned except under the Bankruptcy and Insolvency Act (Canada),

(

c) cannot be garnished or attached,

(

d) is exempt from execution or seizure,

(

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

(

f) is exempted, despite

section 40, from the application for the purposes of this Act of

section 164 (2) of the federal Act [application to other debts] .

(7) A refund of an amount deemed by subsection (2) to be an overpayment is exempted, despite sections 34, 35 and 40, from the application for the purposes of this Act of the following provisions of the federal Act:

(

a) section 160.1 (1) (b) [interest if excess refunded];

(

b) section 160.1 (1.1) [joint and several liability];

(c)

section 164 (3) [interest on refunds].

(8) This

section is repealed on August 1, 2002 and no amount may be refunded or recovered under this

section after that date, despite any reassessment or additional assessment under

section 154 (4) of the federal Act.

Section 16 is amended by striking out "4.75%" wherever it appears and substituting

"4.5%" .

Commencement

Section 2 is deemed to have come into force on January 1, 2001 and is retroactive to the extent necessary to give it effect on and after that date.

Explanatory Notes

SECTION 1: [Income Tax Act, enacts

section 7.1]

provides a one time refundable tax credit as an energy rebate of $50 for single

individuals and $100 for families who meet income, Provincial residency and

other eligibility requirements.

SECTION 2: [Income tax Act, amends

section 16]

reduces the small business tax rate from 4.75% to 4.5% effective January 1,

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