British Columbia Order in Council — Amendment to Property Transfer Tax Regulation (O.C. 252/2020)

O.C. 252/2020

British Columbia — Orders in Council

PROVINCE OF BRITISH COLUMBIA ORDER OF THE LIEUTENANT GOVERNOR IN COUNCIL Order in Council No. , Approved and Ordered 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, effective June 1, 2020, the Property Transfer Tax Regulation, B.C. Reg. 74/88, is amended as set out in the attached Schedule. Minister of Finance and Deputy Premier Presiding Member of the Executive Council (This

part is for administrative purposes only and is not part of the Order.) Authority under which Order is made: Act and section: Property Transfer Tax Act, R.S.B.C. 1996, c. 378, s. 37 (2.1) Other: OIC 364/88 R10392503 May 19, 2020

SCHEDULE The Property Transfer Tax Regulation, B. C. Reg. 74/88, is amended by adding the following section: Exemption for general partner in limited partnership 22

(1) In this section: “foreign limited partner” means a limited partner that (

a) is a foreign entity, or (

b) holds an interest in the limited pa rtnership in trust for a foreign entity; “general partner” has the same meaning as in Part of the Partnership Act; “limited partner” has the same meaning as in Part of the Partnership Act; “limited partnership” means a limited partnership (

a) formed under

section of the Partnership Act, or (

b) registered under

section of the Partnership Act; “profit” includes compensation in the form of income on contributions made by limited partners; “taxation year” has the same meaning as in section 249 (1) of the Income Tax Act (Canada).

(2) A transferee who is a general partner in a limited partnership is exempt from the obligation to pay tax under

section 2.02 (3) (

a) of the Act with respect to the trans- feree’s proportionate share of a taxable transaction’s fair market value if (

a) the transferee is acquiring the land that is the subject of the taxable transaction on behalf of the limited partnership, and (

b) all of the following conditions are met with respect to the limited partnership: (

i) on the date on which the application for regi stration of the taxable transaction is made at a land title office, (

A) each general partner is a Canadian citizen, a permanent resident of Canada or a corporation other than a foreign corporation, and (

B) the combined interest in the limited partnership of all foreign limited partners accounts for less than half of the entitlement of all partners to share in the profits of the limited partnership; (ii) each general partner and limited pa rtner is a resident of Canada for income tax purposes throughout th e taxation year in which the taxable transaction occurs.

(3) An application for an exemption under this

section must (

a) be in the form required by the administrator, and (

b) include a consent, in the form re quired by the administrator, by which the transferee consents to the admini strator conducting inquiries that the administrator considers necessary to confirm that the transferee qualifies for the exemption.

Document details

Collection	British Columbia — Orders in Council
Citation	O.C. 252/2020
Type	order_in_council
Volume / chapter	arc oic 0252 2020
Language	en
Format	pdf
Source	PROVINCIAL
Identifier	d8f395439ba7fd32aceb14f3065b89beb24222dd

Source file is stored in the law ingest library (pdf).