British Columbia Order in Council — Order under Income Tax The Minister of Finance and Corporate Relations and the Ministry of Small Business, Tourism and Culture and the F (O.C. 82/2000)

O.C. 82/2000

British Columbia — Orders in Council

PROVINCE OF BRITISH COLUMBIA ORDER OF THE LIEUTENANT GOVERNOR IN COUNCIL 82 , Approved and Ordered JAN 2 7 20 Lieutenant Governor Executive Council Chambers, Victoria On the recommendation of the undersigned, the Lieutenant Governor, by and with the advice and consent of the Executive Council, orders that approval is given for the Minister of Finance and Corporate Relations to enter into a memorandum of understanding substantially in the for►n attached to this order. ‘1/ Minister of Finance and Corp rate Relations Presidi g Member of the Executive Council (This

part is for administrative purposes only and is not part of the Ordrr Authority under sshich Order is made: Act and section:- Income Tax Act, s. 65 Other (specify):- November 22, 1999 4800 /99/13/cac Order in Council No.

MEMORANDUM OF UNDERSTANDING BETWEEN THE MINISTER OF FINANCE AND CORPORATE RELATIONS represented by the Deputy Minister of Finance and Corporate Relations for and on behalf of the Minister of Finance and Corporate Relations AND MINISTRY OF SMALL BUSINESS, TOURISM, AND CULTURE represented by The Deputy Minister of Small Business, Tourism, and Culture for and on behalf of the Minister of Small Business, Tourism, and Culture AND F. D. B. C. FILM DEVELOPMENT SOCIETY OF BRITISH COLUMBIA represented by President and Chief Executive Officer

PURPOSE The purpose of the Memorandum of Understanding (MOU) is to establish the rules and the procedures that will govern the exchange of information among the Ministry of Finance and Corporate Relations (MFCR), the Ministry of Small Business, Tourism, and Culture (MSBTC), and F. D. B. C. Film Development Society of British Columbia (FDBC), in relation to the administration of the film and television tax credits established by

Part 5 of the Income Tax Act (BC). INTRODUCTION RECOGNIZING that the Minister of Small Business, Tourism, and Culture is the certifying authority that issues eligibility certificates, accreditation certificates, and completion certificates to corporations claiming a film and television tax credit under

Part 5 of the Income Tax Act. • the Minister of Small Business, Tourism, and Culture has designated FDBC as an advisory body for the purposes of

Part 5 of the Income Tax Act. the MSBTC and FDBC have entered into an agreement under which FDB(.., reviews applications for eligibility certificates, completion certificates, and accreditation certificates and makes recommendations to the Minister of Small Business, Tourism, and Culture regarding whether or not to issue a certificate. • FDPC requires information from MFCR to assess whether to recommend to MSBTC that an applicant for a film and television tax credit should be issued an eligibility certificate, completion certificate, or accreditation certificate. • MSBTC requires information from FDBC in order to evaluate the recommendations of FDBC, and to decide whether to issue the relevant certificate. • MFCR requires information from FDBC and MSBTC in order to effectively administer the Income Tax Act. pursuant to

section 65 of the Income Tax Act , the Minister of Finance and Corporate Relations has authority to enter into an agreement with FDBC and MSBTC, to provide taxpayer information to FDBC for the purpose of administering the Income Tax Act. Canada Customs and Revenue Agency acts as agent for the Minister of Finance and Corporate Relations for the purpose of administering

Part 5, Film and Television Tax Credit, of the Income Tax Act. the Government of British Columbia and the Freedom of Information and Protection of Privacy Act require that the confidentiality of the information obtained by MFCR or MSBTC and communicated to FDBC under this MOU be safeguarded in accordance with the provisions of

section 30 of the Freedom of Information and Protection of Privacy Act and the security policy of MFCR, Revenue Division, Income Taxation Branch.

PART I

INTERPRETATION 1.

In this MOU and its Appendices "FDBC personnel" means any person who is employed in the service of, who occupies a position of responsibility in the service of, or who is engaged on behalf of, FDBC or any person who was formerly so employed, who formerly occupied such a position or who was formerly so engaged; "Income Tax Act" means the British Columbia Income Tax Act; "legislation" includes regulations and other statutory instruments pertaining to the administration and enforcement of the film and television tax credit program; "MSBTC personnel" means any person who is employed in the service of, who occupies a position of responsibility in the service of, or who is engaged on behalf of the Ministry of Small Business, Tourism, and Culture or any person who was formerly so employed, who formerly occupied such a position or who was formerly so engaged; "official" means any person who is employed in the service of, who occupies a position of responsibility in the service of, or who is engaged by or on behalf of the Province of British Columbia or any person who was formerly so employed, who formerly occupied such a position or who was formerly so engaged; "other information" means any information other than taxpayer information obtained for the purposes of the Income Tax Act; "taxpayer" includes any person whether or not liable to pay tax; and "taxpayer information" means information of any kind in any form relating to one or more taxpayers, but does not include information that does not directly or indirectly reveal the identity of the taxpayer to whom it relates. 2.

Nothing in this MOU shall be construed as limiting, restricting or varying the responsibilities of MFCR, MSBTC, or the officials or designated persons in their respective ministries. 3. In this MOU, a reference to MFCR is to be read as including Canada Customs and Revenue Agency in its capacity as agent for the Minister of Finance and Corporate Relations for the administration of

Part 5 of the Income Tax Act.

PART II COMMUNICATION OF INFORMATION 4. Subject to paragraph 7, MFCR must provide taxpayer information on request to FDBC or MSBTC, as described in Appendix C. 5. MSBTC must provide to MFCR and FDBC copies of any notice of revocation or notice of refusal issued pursuant to

section 89 of the Income Tax Act, together with reasons for the revocation or refusal. 6. Subject to paragraph 7, other information relevant to the administration or enforcement of

Part 5 of the Income Tax Act may be exchanged among MFCR, FDBC and MSBTC.

7 Taxpayer information and other information will only be provided if it is related to a film and television tax credit for which an application has been completed and signed.

PART III USE AND DISTRIBUTION OF INFORMATION 8. The information referred to in paragraph 4 may only be used by FDBC for the purpose of determining if an applicant qualifies for:

a) an eligibility certificate under

Section 86.

b) a completion certificate under

Section 87.

c) an accreditation certificate under

Section 87.1. 9. FDBC must ensure that any FDBC personnel in receipt of taxpayer information provided to FDBC under this MOU understand the provisions of this MOU related to the use and protection of information and that such personnel agree to comply with and do comply with those provisions. FDBC must ensure that the agreement of such FDBC personnel to comply applies both during and after their employment in the service of, occupation of a position of responsibility in the service of or engagement by or on behalf of FDBC.

Accordingly, MFCR will provide FDBC personnel with related policies and procedures, pursuant to MFCR, Revenue Division, Income Taxation Branch security guidelines (see Appendix

D) and excerpts from the relevant legislation (see Appendix B). 10. iv1SBTC must ensure that any MSBTC personnel in receipt of taxpayer information provided to MSBTC under this MOU understand the provisions of this MOU related to the use and protection of information and that such personnel agree to comply with and do comply with those provisions. MSBTC must ensure that the agreement of such MSBTC personnel to comply applies both during and after their employment in the service of, occupation of a position of responsibility in the service of or engagement by or on behalf of MSBTC.

Accordingly, MFCR will provide MSBTC personnel with related policies and procedures pursuant to MFCR, Revenue Division, Income Taxation Branch security guidelines. (see Appendix

D) and excerpts from the relevant legislation (see Appendix

B) PART IV CONTROL, SECURITY AND AUDIT 11. FDBC and MSBTC will ensure that their security requirements are consistent with

section 30 of the Freedom of 1. formation and Protection of Privacy Act and MFCR, Revenue Division, Income Taxation Branch security guidelines for the Protection of information. A

summary of the guidelines is presented in Appendix D and excerpts from the relevant legislation are presented in Appendix B. 12. FDBC and MSBTC must ensure systems and procedures are in place that will leave an adequate trail for auditing the access to information provided under this MOU. 13. MFCR, FDBC, and MSBTC wiii ensure that information furnished under this MOU will be protected by returning or destroying, in a secure manner, and subject to the requirements of the Document Disposal Act of British Columbia, information no longer required.

PART V EFFECTIVE DATE, TERMINATION AND AMENDMENTS 14. This MOU is effective from April 1, 1998 and shall remain in effect until one year from the date one of the parties gives written notice, sent by registered mail, of its intention to terminate the agreement, or until terminated at any time by mutual consent. 15. MFCR and MSBTC will appoint authorized officials responsible for administering the MOU. These officials and their responsibilities are listed in Appendix A. 16.

With the approval of the signatories, or their designates, this MOU may be amended at any time by an exchange of letters between the parties. 17. Appendices A to U can be amended through an exchange of letters between the authorized officials listed in Appendix A. 18. MFCR, MSBTC and FDBC undertake to notify each other in a timely fashion of any change in policies, laws or regulations that may affect this MOU. 19. Should this MOU be terminated under paragraph 11, the use, protection, confidentiality and security provisions set out in

part II, Ill and IV shall continue to apply to the information that has already been disclosed.

For the Minister of Finance and Corporate Relations Chris Trumpy Deputy Minister Ministry Finance and Corporate Relations For the Ministry of Small Business, Tourism, and Culture David Kelly Deputy Minister Ministry Small Business, Tourism, and Culture For F. D. B. C. Film Development Society of British Columbia Rob Egan President and Chief Executive Officer

APPENDIX A LIST OF AUTHORIZED OFFICIALS FOR MINISTRY OF FINANCE AND CORPORATE RELATIONS (

a) Administrative Issues Director Income Taxation Branch Ministry of Finance and Corporate Relations 5th Floor 1802 Douglas Street Victoria, British Columbia V8W 9V1 (250)-387-3320 (phone) (25M-356-9243 (fax) (

b) Policy Issues Director Tax Policy Branch Ministry of Finance and Corporate Relations 105-617 Government Street Victoria, British Columbia V8T 4K6 (250)-387-9011(phone) (250)-356-5071(fax) FOR THE MINISTRY OF SMALL BUSINESS, TOURISM, AND CULTURE Administrative Issues Director Cultural Service Branch 5th Floor 800 Johnson Street Victoria, British Columbia V8W 9W3 (250) 356-1721 (phone) (250) 387-4099 (fax) FOR F.D.B,C. BRITISH COLUMBIA FILM DEVELOPMENT SOCIETY Administrative Issues President and Chief Executive Officer 2225 West Broadway Street Vancouver, British Columbia V6K 2E4 (604) 736-7997 (phone) (604) 736-7290 (f-

x) LEGISLATION APPENDIX B 1. INCOME TAX ACT (BC) SECTIONS 64 AND 65 64. Communication of Information

(1) A person who, while employed in the administration of this Act. (

a) knowingly communicates or knowingly allows to be communicated to any person not legally entitled to it any information obtained by or on behalf of the provincial minister for the purpose of this Act, (

b) knowingly uses, other than in the course of the person's duties in connection with the administration or enforcement of this Act, any information obtained by or on behalf of the Provincial minister for the purpose of this Act, is guilty of an offence and liable on

summary conviction to a :ine not exceeding $5,000 or to imprisonment for a term not exceeding 12 months or to both a fine and imprisonment. (2) [Exceptions] Subsection (11 does not apply to the communication of information between (

a) the minister and the provincial minister, or (

b) the minister, acting on behalf of British Columbia, and the provincial minister, the Provincial Treasurer or the Provincial Secretary Treasurer of the government of (

i) an agreeing province, or (ii) a non-agreeing province to which an adjusting payment may be made under

section 73(2). (3) [Information-sharing agreement] Subsection (1) does not apply to information disclosed in accordance with an information- sharing agreement under

section 65.

APPENDIX B (Con't) 65. Information-sharing agreements

(1) In this section, "information-sharing agreement" includes a data-matching agreement, but does not include an agreement to share (

a) information obtained by the provincial minister for the purpose of another Act administered by that minister, or (

b) information obtained by the provincial minister under an agreement under this section, except an agreement with the Government of Canada relating to income tax.

(2) With the prior approval of the Lieutenant Governor in Council, the provincial minister may, for the purposes set out in subsection (3), enter into an information-sharing agreement with any of the following: (

a) the Government of Canada or an agency of that government; (

b) the government of a province or other jurisdiction in Canada or any agency of that province or other jurisdiction; (

c) a public body as defined in the Freedom of Infoimation and Protection of Privacy Act. (3) [Idem] An information-sharing agreement may be entered into for the purposes of (

a) the administration of this Act, the Income Tax Act (Canada) or

an Act of another jurisdiction in Canada relating to income tax, or (

b) the administration of a social benefit program operated by a government, agency or public body referred to in subsection (2).

APPENDIX B (Con't) 95. Collection and sharing of information

(1) The certifying authority or the provincial minister may designate any person or body as an advisory body for the purpose of this part. (2) [Information-sharing] Without limiting any provision of this or any other enactment, the certifying authority, the provincial minister and any advisory body designated under subsection (1) may (

a) collect any information that is relevant to an applicant's eligibility for a tax credit being claimed or already claimed under this part, and (

b) share with each other, in accordance with an information-sharing agreement entered into in accordance with

section 65, any information respecting an application, an applicant or any other person if the information is relevant to a tax credit being claimed or already claimed under this Part.

APPENDIX B (Con't) 2. INCOME TAX ACT (CANADA)

SECTION 239 AND 241 239(2.2) Every person who (

a) contravenes subsection 241(1), or (

b) knowingly contravenes an order made under subsection 241(4.1) is guilty of an offence and liable on

summary conviction to a fine not exceeding 1;5,000 or to imprisonment for a term not exceeding 12 months, or to both. 239(2.21) Every person (

a) to whom taxpayer information has been provided for a particular purpose under paragraph 241(4)(b), (c), (e), (h), or (

k) or (

b) who is an official to whom taxpayer information has been provided for a particular purpose under paragraph 241(4)(a), (d), (f), (i), or (j.1) and who for any other purpose knowingly uses, provides to any person, allows the provision to any person of, or allows any person access to, that information is guilty of an offence and liable on

summary conviction to a fine not exceeding $5,000 or to imprisonment for a term not exceeding 12 months, or to both. 241(1) Except as authorized by this section, no official shall (

a) knowingly provide, or knowingly allow to be provided, to any person any taxpayer information; (

b) knowingly allow any person to have access to any taxpayer information; or (

c) knowingly use any taxpayer information otherwise than in the course of the administration or enforcement of this Act, the Canada Pension Plan or the Employment Insurance Act for the purpose for which it was provided under this

section

APPENDIX B (Con't) 241(10) In this section, "designated person" means any person who is employed in the service of, who occupies a position of responsibility in the service of, or who is engaged by or on behalf of, (

a) a municipality in Canada, or (

b) a public body performing a function of government in Canada., or any person who was formerly so employed, who formerly occupied such a position or who was formerly so engaged; "official" means any person who is employed in the service of, who occupies a position of responsibility in the service of, or who is engaged by or on behalf of, (

a) Her Majesty in right of Canada or a province, or (

b) an authority engaged in administering a law of a province similar to the Pension Benefits Standards Act, 1985. or any person who was formerly so employed, who formerly occupied such a position or who was formerly so engaged.

TAXPAYER INFORMATION APPROVED FOR RELEASE APPENDIX C 1. All or a portion of the following taxpayer information in respect of a corporate taxpayer who has applied for an eligibility, completion, or accreditation certificate, may be transmitted to the officials or designated persons of FDBC or MSBTC by MFCR. • Information regarding the corporate taxpayer application for a certificate under

section 17 of the Income Tax Act for the two-year tax holiday for new small business, and whether or not a certificate has or will be issued. • Information regarding the corporate taxpayer registration as a Venture Capital Corporation (VCC) pursuant to the Small Business Venture Capital Act or as an Employee Venture Capital Corporation (EVCC) or registration of an Employee Share Ownership Plan (ESOP) pursuant to the Employee Investment Act. • Information obtained from Canada Customs and Revenue Agency, as a result of Canada Customs and Revenue Agency acting as agent for MFCR, for purpose of determining continued eligibility for a film and television tax credit. • Notification of any revoked certificates together with the notice of revocation and the reasons for the revocation.

SECURITY DETAILS AND PROCEDURES APPENDIX D A. General Conditions 1. All information provided by MFCR under this MOU will be protected from disclosure under Sections 64 of the Income Tax Act (BC) and Sections 239 and 241 of the Income Tax Act (Canada) and

Section 30 of the Freedom of Information and Protection of Privacy Act. 2. Access to information provided under this MOU shall be controlled and limited to FDBC personnel and MSBTC personnel who: • have a job related need to know the information; and • have been briefed on the provisions of Sections 64 of the Income Tax Act (BC), Sections 239 and 241 of the Income Tax Act (Canada), and

Section 30 of the Freedom of Information and Protection of Privacy Act of the importance of maintaining the confidentiality of tax- related information and on security measures to adequately safeguard the information. 3. MSBTC and FDBC must safeguard all recorded and electronic information provided under this MOU by applying appropriate protective measures as outlined in the chart form attached. Procedures 1 Any loss, suspected loss or unauthorized disclosure ■ or access to the information provided under this MOU must be reported immediately to MFCR.

The following details must be provided: • a description of the information involved; • the date, place and circumstances surrounding the incident; • the extent of known or probable compromise and the identity of the person who had or is believed to have had access to the information; • action taken or contemplated to remedy the situation; and • any additional details which may assist in assessing the loss or compromise. 2. A written report should follow as soon as possible after any such incident described in paragraph 1 of Part B of this Appendix and be forwarded to MFCR.

The report should include the information noted above as well as the results of any investigation conducted following the initial search and notification. 3. MFCR should be notified if the information referred to in paragraph 1 is subsequently found, including the circumstances under which it was found.

MFCR REVENUE DIVISION Income Taxation Branch Security Guidelines APPENDIX D (Con'

t) MEDIA PROCESSING MARKING STORAGE DESTRUCTION ERASURE Electronic Transmission COMMUNICATION Facsimile Mail Documents and Printouts ' process 1 ' mark in the upper right hand corner on face of cover page 2 ' store in cabinet equipped with a padlock ' use 5.00 mm strip cut shredder non applicable ncn applicable ' use secure facsimile devices (e.g FAX Secrets) use two gum- sealed envelopes 4 5 Non-removable hard disks * process 1 * mark on cas., •g and outer container when removed from the computer system 2 ' logical access controls (User ID and Password) encrypt 3 ' physical access controls to arcs * erase ' brealcicut in quarters ' grind surface of the platter ' smash with hammer or drill holes in the platter ' discard if encrypted 3 * over wnte times (e.g.

RCMP-DSX, Norton's WIPEDISK1 ' approved degausser ' encrypt data 3 ' use secure facsimile devices (e.g.

FAX Secrets) ' encrypt and package in a solid container designed for that purpose 3 4 5 Removable media such as: diskette; hard disks; zip; jazz: or Bernoulli drives; ' process 1 ' mark on casing and outer container ' magnetic media mark on cartridge or cassette ' diskette mark ' on face of surface '2 encrypt and store in lockable containers 3 ' erase ' break/cut in quarters ' diskette cut in 1/2 inch stripes • magnetic tapes and cartridges cut reels in half ' gnnd surface of the platter ' smash with hammer or drill hole in the platter 5 ' discard if encrypted 3 ' over write times (e.g.

RCMP-DSX, Norton's WIPEDISK) ' approved degausser ' magnetic tapes and cartridges over write times the fu:; lencith of the tape ' encrypt data 3 non applicable ' encrypt and package in a solid container designed for that purpose 3 4 5 ' diskettes encrypt and use two gum-sealed envelopes (use a diskette mailer as the inner envelope) 3 4 5 Microfilms ' process 1 ' area is to be under continuous monitoring ' mark on cartridge reel or cassette ' at the beginning (header) and end (trailer) of the film ' at the centre of the top and bottom of each individual frame •2 ' store in cabinet equipped with a padlock • use 5.00 mm strip cut shredder non applicable non applicable non applicable package in a solid container designed for that purpose 4 5

MFCR REVENUE DIVISION Income Taxation Branch Security Guidelines APPENDIX D (Con'

t) MEDIA PROCESSING MARKING STCRAGE DESTRUCTION ERASURE Electronic Transmission COMMUNICATION Facsimile MAIL Microfilms * process 1 ' area is to be under continuous monitoring ' mark on each ficne/frame 2 - the fiche # and total # of fiche on each fiche/frame - at the header line the centre of the top and bottom of each fiche/frame ' store in cabinet equipped with a padlock ' use 5.00 mm strip cut shredder non applicable non applicable non applicable use two gum- sealed envelopes 4 5 ' process 1 ' mark on outside of the card 2 ' encrypt and store in lockable containers 3 ' destroy the microchip, mag stripes. optical zones, =::., by smashing, breaking, cutting or grinding the data storage area ' over write times (e.g.

RCMP-DSX, Norton's WIPEDISK) ' approved degausses ' encrypt data 3 non applicable • encrypt and package in a solid container designed for that purpose 3 4 5 Local Area Networks (LAN) Server ' process 1 ' area is to be under continuous monitoring ' mark on casing and outer container when removed from the computer system 2 Logical access controls (UselD and Password) ' encrypt 3 ' physical access controls for LAN rooms or facifit;es ' erase ' brealv'cut in quarters ' grind surface of the platter ' smash with hammer cr dnil hole in the platter ' discard if encrypted 3 ' over write times (e.g.

RCMP-DSX, Norton's WIPEDISK) ' approved degausser encrypt data 3 ' use secure facsimile devices (e.g. FAX Secrets) ' encrypt and package in a solid c.pritainer designed for that purpose 3 4 5 1 The information is to be processed in an area where access is limited only to authorized individuals who work there and to properly-escorted visitors. These areas are to be monitored on a regular basis.

Audit trails of all accesses to client information is to be maintained (data elements: Identity of person, times and date of tne access and type of transaction made). 2 The marking designated "PROTECTED" is to appear at all times on all paper copies and the media. 3 Data encrypted under approved Revenue Canada algorithms can be treated as non-sensitive; from an availability and integrity point of view, on and off-site backups should be maintained and physical security protection applied. 4 Send by priority courier, registered mail, or private courier.

Proof of mailing and a record of transit and delivery is to be provided by the courier. 5 The address is to appear on both envelopes; the security marking is to appear on the inner envelope only marked To be opened by addressee only", when using solid containers, secure with plastic or metal ties so it cannot be opened unless it is broken, or with a padlock.

Document details

Collection	British Columbia — Orders in Council
Citation	O.C. 82/2000
Type	order_in_council
Volume / chapter	arc oic 0082 2000
Language	en
Format	pdf
Source	PROVINCIAL
Identifier	d0aa44f4570d87e5a5721f902244116d0eb3e9e2

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