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2010 Legislative Session: 2nd Session, 39th 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 29th day of April, 2010

Ian D. Izard, Q.C., Law Clerk

HONOURABLE COLIN HANSEN

MINISTER OF FINANCE AND

DEPUTY PREMIER

BILL 9 — 2010

CONSUMPTION TAX REBATE AND TRANSITION ACT

Contents

Part 1 –

Definitions and

Interpretation

Definitions

Taxable supply made in British Columbia

Part 2 – Repeal of Social Service Tax Act

Repeal

Part 3 – Point-of-Sale Rebates

Definitions and

interpretation for this Part

Rebate for supply made in British Columbia of qualifying property

Rebate on imported qualifying property

Rebate on qualifying property brought into British Columbia

Deduction of payments

Part 4 – Residential Energy Credit and Rebate

Point-of-sale energy credit

Energy rebate paid by director

Repayment of energy allowance if change in use

Adjustment of energy allowance if consideration reduced

Reimbursement of energy credit

Claim for reimbursement

Reimbursement limits

Repayment of reimbursement by registrant

Recovery of amount by registrant

Director may determine attribution of amount

Part 5 – Tax on Designated Property

Tax on designated property acquired in British Columbia

Tax on designated property brought into British Columbia

Tax on registration of vehicle brought into British Columbia

Tax if use of designated property changes

Rate of tax

Taxable value if depreciation

Taxable value if trade-in allowed on purchase

Exempt from tax

Deemed purchase price

Calculation of tax

Part 6 – Tax Refunds

Refund where no obligation to pay

Refund authorized or required under regulations

Refund in accordance with Nis g a'a Nation Taxation Agreement

Refund in accordance with treaty first nation tax treatment agreement

Claim for refund

Refund limits

Part 7 – Administration

Inspection and audit powers

Assessments

Penalties

Notice of assessment

Irregularities

Interest on amount payable

Part 8 – Appeals

Appeal to minister

Appeal to court

Collection of amount unaffected by pending appeal

Part 9 – Recovery of Amounts Owing

Court action to recover amount owing

Summary proceedings without action

Alternate remedies

Attachment of funds

Lien

Notice of enforcement proceedings

Limitation period

Part 10 – Administrative Agreements and Appropriations

Administrative agreements

Appropriations

Part 11 – General

Appointment of director

Delegation

Confidentiality

Demand for information

Service of notices

Part 12 – Offences and Penalties

Offences and penalties

Onus of proof

Evidence – notice of assessment

Offence by corporation

Time limit on prosecution

Section 5 of Offence Act

Part 13 – Regulations

General regulation powers

Regulations in relation to residential energy credit and rebate

Regulations in relation to tax on vehicles, boats and aircraft

Regulations in relation to residential property rebates

Part 14 – Plans and Reports Respecting Health Funding

Preparation of plans and reports

Plans and reports presented to Legislative Assembly

Part 15 – Transitional Provisions

Transition – regulations

Transition – health funding report

Transition – Balanced Budget and Ministerial Accountability Act

Transition – Income Tax Act

Part 16 – Amendments to Hotel Room Tax Act

74-85

Consequential amendments

Part 17 – Amendments to Social Service Tax Act

86-162

Consequential amendments

Part 18 – Consequential and Related Amendments

163-204

Consequential and related amendments

205-212

Amendments to this Act

Commencement

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

Part 1 —

Definitions and

Interpretation

Definitions

1 In this Act:

"assessment" includes reassessment;

"consideration" has the same meaning as in

Part IX [Goods and Services Tax] of the federal Act;

"director" means the person appointed by the minister to administer this Act;

"energy allowance" means an energy credit or energy rebate;

"energy credit" means a credit provided under

section 9 [point-of-sale energy credit] ;

"energy product" means any of the following products:

(

a) electricity;

(

b) natural gas;

(

c) propane;

(

d) light fuel oil, as defined in

Schedule 1 of the Carbon Tax Act , that is

(

i) for use in a furnace, boiler or open flame burner, and

(ii) coloured in the manner in which fuel is coloured under the Motor Fuel Tax Act ;

(

e) kerosene;

(

f) heat;

(

g) steam;

(

h) wood, when used as a source of energy;

(

i) pelletized fuel, as defined in the Solid Fuel Burning Domestic Appliance Regulation, when used as a source of energy;

(

j) other prescribed products in prescribed circumstances,

but does not include products excluded by regulation;

"energy rebate" means a rebate paid under

section 10 [energy rebate paid by director] ;

"federal Act" means the Excise Tax Act (Canada);

"registrant" ,

(

a) subject to paragraph (b), has the same meaning as in

Part IX [Goods and Services Tax] of the federal Act, and

(

b) in

Part 4 and sections 37, 64 and 65, means a person who is registered under Subdivision d of Division V of

Part IX of the federal Act;

"residential dwelling" has the prescribed meaning;

"residential use" has the prescribed meaning;

"supply" has the same meaning as in

Part IX [Goods and Services Tax] of the federal Act;

"tax" , in relation to tax under this Act, includes all penalties and interest that are or may be added to tax under this Act;

"taxable supply" has the same meaning as in

Part IX [Goods and Services Tax] of the federal Act.

Taxable supply made in British Columbia

2 For the purposes of this Act, a taxable supply is made in British Columbia if the supply is deemed to be made in British Columbia under

section 144.1 [supply in a province] of the federal Act.

Part 2 — Repeal of Social Service Tax Act

Repeal

3 The Social Service Tax Act , R.S.B.C. 1996, c. 431, is repealed.

Part 3 — Point-of-Sale Rebates

Definitions and

interpretation for this

Part

(1) In this Part:

"qualifying property" means any of the following, subject to meeting any prescribed circumstances:

(

a) prescribed books;

(

b) prescribed children's clothing and footwear;

(

c) prescribed children's diapers;

(

d) prescribed children's car seats and car booster seats;

(

e) prescribed feminine hygiene products;

(

f) prescribed motor fuels;

"supplier" has the same meaning as in

Part IX [Goods and Services Tax] of the federal Act.

(2) For the purposes of this Part, a person is resident in British Columbia if the person is deemed to be resident in British Columbia under

section 132.1 [person resident in a province] of the federal Act.

Rebate for supply made in British Columbia

of qualifying property

(1) If a person must pay tax under

section 165 (2) [tax in participating province] of the federal Act in respect of a taxable supply made in British Columbia of qualifying property, the supplier, on behalf of the government, may pay or credit the person an amount equal to the tax imposed in respect of the supply under that

section of the federal Act.

(2) If a supplier pays or credits an amount under subsection (1), the federal minister, on behalf of the government, may pay or credit an equal amount to the supplier.

(3) On application submitted to the federal minister by a person to whom an amount may be paid or credited under subsection (1), the federal minister, on behalf of the government, may pay the person the amount if the amount is not paid or credited by the supplier.

(4) An application under subsection (3) must be made in the form and manner required by the federal minister.

(5) An amount must not be paid by the federal minister under subsection (3) if the person makes an application under that subsection for the amount more than four years after the day the tax under

section 165 (2) of the federal Act became payable in respect of the qualifying property.

Rebate on imported qualifying property

6 If a person who is resident in British Columbia must pay tax under

section 212.1 [tax in participating province on imported goods] of the federal Act in respect of qualifying property, the federal minister, on behalf of the government, may pay or credit the person an amount equal to the tax imposed in respect of the property under that

section of the federal Act.

Rebate on qualifying property brought into British Columbia

7 The federal minister, on behalf of the government, may pay or credit a person an amount equal to the tax imposed under

section 218.1 [tax in participating province on imported taxable supplies] or Division IV.1 [Tax on Property and Services Brought Into a Participating Province] of

Part IX [Goods and Services Tax] of the federal Act in respect of qualifying property in the following circumstances:

(

a) the physical possession of the property is transferred to the person in British Columbia and the person must pay tax under

section 218.1 (1) (

b) of the federal Act in respect of the property;

(

b) the property is delivered or made available to the person in British Columbia, the person is resident in British Columbia or is a registrant, and the person must pay tax under

section 218.1 (1) (

c) of the federal Act in respect of the property;

(

c) the supply of the property is made in British Columbia and the person must pay tax under

section 218.1 (1) (

d) of the federal Act in respect of the property;

(

d) the property is brought or sent into British Columbia or is delivered or made available in British Columbia and the person must pay tax under Division IV.1 of

Part IX of the federal Act in respect of the property.

Deduction of payments

(2) A payment or credit under this

Part in respect of qualifying property must be considered to be a reduction of the revenue payable to the government as provided for under the sales tax agreement.

Part 4 — Residential Energy Credit and Rebate

Point-of-sale energy credit

(1) Subject to the regulations, a registrant, on behalf of the government, must provide a credit to a person in respect of a taxable supply in the amount determined in accordance with the regulations if

(

a) the registrant makes the taxable supply in British Columbia,

(

b) the taxable supply is a supply of an energy product other than wood or pelletized fuel,

(

c) the person must pay tax under

section 165 (2) [tax in participating province] of the federal Act in respect of the taxable supply,

(

d) the person is acquiring the energy product only for residential use in a residential dwelling, and

(

e) the registrant delivers or provides the energy product to the residential dwelling.

(2) An amount to be credited under subsection (1) in respect of a taxable supply must be credited at the time the tax in respect of the taxable supply under

section 165 (2) of the federal Act is payable.

(3) An amount must not be credited under subsection (1) in respect of a taxable supply if the person who must pay tax under

section 165 (2) [tax in participating province] of the federal Act in respect of the taxable supply

(

a) may claim an input tax credit under

Part IX [Goods and Services Tax] of the federal Act in respect of the taxable supply, or

(

b) may be paid a rebate under

section 259 of the federal Act in respect of the taxable supply.

Energy rebate paid by director

(1) A person is entitled to a rebate under this

section in respect of a taxable supply if

(

a) the person is the recipient of the taxable supply,

(

b) the taxable supply is made in British Columbia and is a supply of an energy product, a portion of which is for residential use in a residential dwelling,

(

c) the person has paid tax under

section 165 (2) [tax in participating province] of the federal Act in respect of the taxable supply, and

(

d) the person has not been provided an energy credit in respect of the taxable supply.

(2) If the director is satisfied that a person is entitled to a rebate under this

section in respect of a taxable supply of an energy product, the director, subject to the regulations, must pay from the consolidated revenue fund a rebate to the person in an amount determined in accordance with the regulations in respect of that portion of the energy product that is for residential use in a residential dwelling.

(3) To claim a rebate under this section, a person must

(

a) subject to the regulations, submit to the director a written application in the form and manner satisfactory to the director and signed by the person who paid the tax under

section 165 (2) of the federal Act,

(

b) provide any information or records required by the director, and

(

c) provide sufficient evidence, including but not limited to the information or records to be provided under paragraph (

b) of this subsection, to satisfy the director that the person is entitled to the rebate.

(4) For the purposes of subsection (3) (a), if the person who paid the amount claimed is a corporation, the application must be signed by a member of the board of directors or an authorized employee of the corporation.

(5) An amount must not be paid by the director under subsection (2) if the amount to be paid under that subsection arising from one application is less than $10.

(6) An amount must not be paid by the director under subsection (2) in respect of a taxable supply

(

a) to the extent that the person may claim an input tax credit under

Part IX [Goods and Services Tax] of the federal Act in respect of the tax paid by the person under

section 165 (2) of the federal Act in respect of the taxable supply,

(

b) to the extent that the person may be paid a rebate under

section 259 of the federal Act in respect of the tax paid by the person under

section 165 (2) of the federal Act in respect of the taxable supply, or

(

c) if the application is made more than 2 years after the date on which tax was paid under

section 165 (2) of the federal Act in respect of the taxable supply.

Repayment of energy allowance if change in use

11 (1) Subsection (2) applies to a person who

(

a) received an energy allowance in respect of a taxable supply of an energy product, and

(

b) subsequently uses any portion of that energy product, or permits any portion of that energy product to be used, for a use other than for residential use in a residential dwelling.

(2) A person to whom this subsection applies must pay to the government, at the prescribed time and in the prescribed manner, an amount equal to the portion of the amount of the energy allowance received in respect of the taxable supply that is attributable to that portion of the energy product referred to in subsection (1) (b).

Adjustment of energy allowance if consideration reduced

(1) If a registrant provides an energy credit to a person in respect of a taxable supply and the consideration for the taxable supply is subsequently reduced, the registrant must,

(

a) if the consideration for the taxable supply has not been collected by the registrant, adjust the amount of the credit provided to the person by subtracting the portion of the credit determined in the manner prescribed for the purposes of

section 9 that is attributable to the amount by which the consideration was reduced, and

(

b) if the consideration for the taxable supply was collected by the registrant, reduce any amount to be paid or credited to the person in respect of the reduced consideration by subtracting the portion of the credit determined in the manner prescribed for the purposes of

section 9 that is attributable to the amount by which the consideration was reduced.

(2) If a person is entitled to an energy rebate in respect of a taxable supply and subsequently the consideration for the taxable supply is reduced, the person must,

(

a) if the person has not claimed an energy rebate in respect of the taxable supply, provide the director with information and records relating to the reduction in the consideration for the taxable supply when the person claims an energy rebate in respect of the taxable supply, and

(

b) if the person has claimed an energy rebate in respect of the taxable supply, subject to subsection (3), pay to the government, at the prescribed time and in the prescribed manner, an amount equal to the portion of the amount of the energy rebate received in respect of the taxable supply that is attributable to the amount by which the consideration was reduced.

(3) The director may deduct from an energy rebate payable to a person an amount payable by the person under subsection (2) (b).

Reimbursement of energy credit

(1) If the director is satisfied that a registrant has provided an energy credit to a person entitled to the energy credit, the director, subject to the regulations, must pay from the consolidated revenue fund to the registrant a reimbursement equal to the credit provided by the registrant.

(2) If a registrant has paid an amount under

section 16 (2) (

c) in respect of a taxable supply and the registrant subsequently recovers an amount in respect of the taxable supply to which

section 231 (3) [recovery of bad debt] of the federal Act applies, the director must pay from the consolidated revenue fund to the registrant a reimbursement in the amount determined in accordance with the regulations.

Claim for reimbursement

(1) To claim a reimbursement under

section 13, a registrant must

(

a) subject to the regulations, submit to the director a written application in the form and manner satisfactory to the director and signed by the registrant who credited the amount claimed,

(

b) provide any information or records required by the director, and

(

c) provide sufficient evidence, including but not limited to the information or records to be provided under paragraph (

b) of this subsection, to satisfy the director that the registrant is entitled to the reimbursement.

(2) For the purposes of subsection (1) (a), if the registrant claiming a reimbursement is a corporation, the application must be signed by a member of the board of directors or an authorized employee of the corporation.

Reimbursement limits

(1) A reimbursement must not be made under

section 13 if

(

a) the amount of the reimbursement is less than $10, or

(

b) the application for the reimbursement is made more than 4 years after the date on which the amount claimed was credited.

(2) Despite the Limitation Act , an action for a reimbursement under

section 13 must not be brought more than 4 years after the date on which the amount claimed was credited.

Repayment of reimbursement by registrant

(1) This

section applies to a registrant in relation to an energy credit provided in respect of a taxable supply if

(

a) the director reimburses an amount under

section 13 (1) in respect of the taxable supply that exceeds the amount of the credit provided at the time referred to in

section 9 (2), or as adjusted or reduced under

section 12 (1), in respect of that taxable supply,

(

b) the person who received the credit is not entitled to an energy credit in respect of the taxable supply and the director reimbursed an amount under

section 13 (1) in respect of that taxable supply, or

(

c) the director reimburses an amount under

section 13 (1) in respect of the taxable supply and the registrant subsequently deducts an amount under

section 231 (1) [bad debts] of the federal Act in respect of the taxable supply.

(2) Subject to subsection (3), a registrant to whom this

section applies must pay to the government, at the prescribed time and in the prescribed manner,

(

a) in the circumstances described in subsection (1) (a), the amount by which the reimbursement exceeds the credit,

(

b) in the circumstances described in subsection (1) (b), the amount reimbursed, and

(

c) in the circumstances described in subsection (1) (c), the amount determined in accordance with the regulations.

(3) The director may deduct from a reimbursement payable to a registrant under

section 13 an amount payable by the registrant under subsection (2) of this section.

Recovery of amount by registrant

17 If a registrant

(

a) makes a taxable supply in British Columbia of an energy product,

(

b) provides a credit to a person in respect of the taxable supply as if it were an energy credit, and

(

c) is not reimbursed under

section 13 (1) because the person is not entitled to an energy credit in respect of the taxable supply,

the registrant may by action in a court recover from the person the amount credited.

Director may determine attribution of amount

18 The director may determine the attribution of the amount of the energy allowance for the purposes of

section 11 (2) or 12.

Part 5 — Tax on Designated Property

Tax on designated property acquired in British Columbia

19 A purchaser of designated property must pay to the government, at the prescribed time and in the prescribed manner, a tax on the designated property at the rate in

section 23 at the time of purchase.

Tax on designated property brought into British Columbia

(1) This

section applies to a person

(

a) who

(

i) resides, ordinarily resides or carries on business in British Columbia or enters British Columbia with the intention of residing or carrying on business in British Columbia, or

(ii) does not reside, ordinarily reside or carry on business in British Columbia and who

(

A) owns real property in British Columbia, or

(

B) leases, as lessee, real property in British Columbia if the term of that lease, including the cumulative total of all options and rights to extend or renew the lease, is at least 5 years, and

(

b) who brings or sends into British Columbia, or receives delivery in British Columbia of, designated property for consumption or use by one of the following:

(

i) the person;

(ii) another person at the first person's expense;

(iii) another person for whom the first person acts as agent;

(iv) another person at the expense of a principal for whom the first person acts as agent.

(2) For the purposes of subsection (1), a person is deemed to be carrying on business in British Columbia if an employee or other representative of the person carries on activities in British Columbia on that person's behalf for the purpose of promoting the sale or use of that person's products or services.

(3) If a person

(

a) is not a person described in subsection (1) (a), and

(

b) brings or sends into British Columbia, or receives delivery in British Columbia of, designated property for consumption or use by another person at the first person's expense,

for the purposes of subsection (1) (b), the other person is deemed to have received delivery in British Columbia of the designated property.

(4) Subject to subsection (5), a person to whom this

section applies must pay to the government, at the prescribed time and in the prescribed manner, a tax on the designated property at the rate in

section 23 on the entry date.

(5) A person is not required to pay tax under this

section in respect of a vehicle if a person pays tax under

section 21 in respect of the bringing or sending into British Columbia, or the delivery in British Columbia, of the vehicle.

(6) For the purposes of this section, any of the following is proof, in the absence of evidence to the contrary, that an individual resides in British Columbia:

(

a) the receipt by the individual of a grant under

section 2 of the Home Owner Grant Act ;

(

b) the receipt by a person of a grant in respect of the individual's residence and for the individual's benefit under

section 3, 4 or 5 of the Home Owner Grant Act ;

(

c) the enrollment of the individual as a beneficiary under the medical services plan continued under the Medicare Protection Act .

Tax on registration of vehicle brought into British Columbia

(1) This

section applies if

(

a) a person brings or sends into British Columbia, or receives delivery in British Columbia of, a vehicle for consumption or use by one of the following:

(

i) the person;

(ii) another person at the first person's expense;

(iii) another person for whom the first person acts as agent;

(iv) another person at the expense of a principal for whom the first person acts as agent, and

(

b) any of the persons referred to in paragraph (

a) registers the vehicle under the Commercial Transport Act , Motor Vehicle Act or Motor Vehicle (All Terrain) Act .

(2) Subject to subsection (3), if this

section applies, the person who registers the vehicle must pay to the government, at the prescribed time and in the prescribed manner, a tax on the vehicle at the rate in

section 23 on the entry date.

(3) A person is not required to pay tax under this

section in respect of a vehicle if a person referred to in subsection (1) (

a) pays tax under

section 20 in respect of the vehicle.

Tax if use of designated property changes

22 (1) Subsection (2) applies to a person

(

a) who purchases, brings or sends into British Columbia or receives delivery in British Columbia of designated property on which tax is not payable under this Act, other than by reason of an exemption under

section 26, and

(

b) who,

(

i) if tax is not payable because the person purchased, brought or sent into British Columbia or received delivery in British Columbia of that property for an exempt use, subsequently uses that property or allows that property to be used for a use other than an exempt use, or

(ii) in any other case, subsequently uses that property or allows that property to be used for a purpose other than that which allowed the person to be exempt from tax under this Act.

(2) A person to whom this subsection applies must, at the prescribed time,

(

a) report the change in the use of the designated property in writing to the director in a form and manner satisfactory to the director,

(

b) provide any information or records required by the director, and

(

c) pay to the government, in the prescribed manner, a tax at the rate in

section 23 at the time the designated property is used as described in subsection (1) (

b) of this section.

(3) Subsection (4) applies to a person who

(

a) received a refund of tax under this Act in relation to designated property, and

(

b) subsequently uses that property or allows that property to be used for a purpose other than that which entitled the person to receive a refund of tax under this Act.

(4) A person to whom this subsection applies must, at the prescribed time,

(

a) report the change in the use of the designated property in writing to the director in a form and manner satisfactory to the director,

(

b) provide any information or records required by the director, and

(

c) pay to the government, in the prescribed manner, a tax at the rate in

section 23 at the time the property is used as described in subsection (3) (

b) of this section.

Rate of tax

(1) The rate of tax payable under

section 19 is 12% of the taxable value of the designated property.

(2) The rate of tax payable under sections 20 and 21 is 12% of the taxable value of the designated property as of the entry date.

(3) The rate of tax payable under

section 22 (2) and (4) is 12% of the taxable value of the designated property at the time the property is used as described in

section 22 (1) (

b) or (3) (b).

Taxable value if depreciation

24 If designated property, other than property acquired for resale, becomes subject to tax under sections 20 to 22, for the purposes of paragraph (

b) of the definition of "taxable value", the taxable value of the designated property is the greater of the following amounts:

(

a) the depreciated value, determined in accordance with the regulations, of the designated property

(

i) on the entry date, if the designated property becomes subject to tax under

section 20 or 21, or

(ii) at the time the designated property is used as described in

section 22 (1) (

b) or (3) (b), if the designated property becomes subject to tax under

section 22;

(b) 50% of the purchase price of the designated property.

Taxable value if trade-in allowed on purchase

25 If designated property of a purchaser is accepted at the time of sale by the seller on account of the purchase price of the designated property sold, for the purposes of paragraph (

c) of the definition of "taxable value", the taxable value of the designated property purchased by the purchaser and subject to tax under

section 19 is the amount, if any, by which the purchase price of that designated property exceeds the fair market value, at the time of sale, of the designated property accepted by the seller on account of the purchase price.

Exempt from tax

26 A person is exempt from tax under this

Part in respect of designated property if

(

a) the person, or another person referred to in

section 20 or 21, acquired the designated property at a sale that is

(

i) a taxable supply by a registrant under

Part IX [Goods and Services Tax] of the federal Act, or

(ii) an exempt supply under

Part I of

Schedule V to the federal Act, or

(

b) the person, or another person referred to in

section 20 or 21, imported the designated property from outside Canada.

Deemed purchase price

27 If the director is of the opinion that the purchase price attributed to designated property by the person liable to pay tax under this Part does not represent the fair market value of the designated property,

(

a) the director may determine the fair market value of the designated property, and

(

b) for the purposes of this Part, the fair market value of the property as determined under paragraph (

a) is deemed to be the purchase price of the designated property.

Calculation of tax

28 The tax imposed under this Part must be

(

a) calculated separately on every purchase, and

(

b) calculated to the nearest cent, with 1/2 cent counted as one cent.

Part 6 — Tax Refunds

Refund where no obligation to pay

29 If the director is satisfied that an amount has been paid as tax under this Act in circumstances where there was no legal obligation to pay the amount as tax, the director must pay from the consolidated revenue fund a refund of that amount to the person entitled to it.

Refund authorized or required under regulations

30 The director,

(

a) if authorized by the regulations, may pay from the consolidated revenue fund a refund of all or part of tax paid under this Act by an applicant for a refund, and

(

b) if required by the regulations, must pay from the consolidated revenue fund a refund of all or part of tax paid under this Act by an applicant for a refund.

Refund in accordance with Nisga'a Nation Taxation Agreement

(1) In this section:

"person" has the same meaning as "claimant" in paragraph 6 (

b) of the Taxation Agreement;

"Taxation Agreement" means the Nisga'a Nation Taxation Agreement tabled in the Legislative Assembly on November 30, 1998, but does not include any amendments made to that agreement after that date.

(2) On application, and on receipt of evidence establishing that a person is entitled as provided in the Taxation Agreement to a refund of tax paid by the person under this Act, the director must pay that refund from the consolidated revenue fund to that person.

Refund in accordance with treaty first nation

tax treatment agreement

(1) In this section, "tax treatment agreement" means an agreement among a treaty first nation, British Columbia and Canada that,

(

a) under the

chapter of the treaty first nation's final agreement that sets out the agreement of the parties in relation to taxation, is required to come into effect on the date the final agreement comes into effect, and

(

b) is tabled in the Legislative Assembly on or before the date settlement legislation in relation to the final agreement receives Third Reading,

and, for greater certainty, does not include amendments to the agreement made after the date the settlement legislation receives Third Reading.

(2) On application, and on receipt of evidence establishing that a person is entitled under a tax treatment agreement to a refund of tax paid by the person under this Act, the director must pay that refund from the consolidated revenue fund to that person.

Claim for refund

(1) To claim a refund under this Part, other than under sections 31 and 32, a person must

(

a) submit to the director a written application in the form and manner satisfactory to the director and signed by the person who paid the amount claimed, and

(

b) provide sufficient evidence to satisfy the director that the person who paid the amount is entitled to the refund.

(2) For the purposes of subsection (1) (a), if the person who paid the amount claimed is a corporation, the application must be signed by a member of the board of directors or authorized employee of the corporation.

Refund limits

(1) Despite

section 16 of the Financial Administration Act ,

(

a) a refund under this Part of less than $10 must not be made, and

(

b) a refund under this Part must not be made on a claim for a refund that is made more than 4 years after the date on which the amount claimed was paid.

(2) Despite the Limitation Act , an action for a refund under this Part must not be brought more than 4 years after the date on which the amount claimed was paid.

Part 7 — Administration

Inspection and audit powers

(1) Except as limited by subsections (3) and (4), to determine whether this Act and the regulations are being or have been complied with, the director may enter at any reasonable time the business premises occupied by a person or the premises where the records of the person are kept, in order to do any of the following:

(

a) inspect, audit and examine records;

(

b) inspect or examine designated property.

(2) A person occupying premises referred to in subsection (1) must

(

a) produce all records as may be required by the director, and

(

b) answer all questions of the director regarding the matters referred to in that subsection.

(3) The power to enter a place under subsection (1) must not be used to determine whether an unnamed third party has complied with this Act and the regulations unless the place is

(

a) the business premises occupied by a person who operates a marina, shipyard, airport or other premises or site where designated property is used or kept or a service is provided in respect of designated property, or

(

b) the premises where the records of the person referred to in paragraph (

a) are kept.

(4) The power to enter a place under subsection (1) must not be used to enter a dwelling occupied as a residence without the consent of the occupier except under the authority of a warrant under subsection (5).

(5) On being satisfied by evidence on oath that there are in a place records or other things for which there are reasonable grounds to believe that they are relevant to the matters referred to in subsection (1), a justice may issue a warrant authorizing a person named in the warrant to enter the place in accordance with the warrant in order to exercise the powers referred to in subsection (1).

(6) When required by the director, a person must provide to the director all records that the director considers necessary to determine whether this Act and the regulations are being or have been complied with.

(7) A person must not

(

a) hinder, molest or interfere with a person doing anything that the person is authorized to do under this section, or

(

b) prevent or attempt to prevent a person from doing anything that the person is authorized to do under this section.

Assessments

(1) If it appears from an inspection, audit or examination or from other information available to the director that a person has failed to pay an amount to the government as required under this Act, the director must

(

a) estimate, in the manner and by the procedure the director considers adequate and expedient, the amount not paid, and

(

b) make an assessment against the person for the estimated amount.

(2) If it appears from an inspection, audit or examination or from other information available to the director that a person has received an energy rebate or a reimbursement under this Act in an amount that was in excess of the amount that was due to the person, the director must make an assessment against the person in an amount equal to the excess amount.

(3) If it appears from an inspection, audit or examination or from other information available to the director that a person has received an energy credit in an amount that was in excess of the amount that was due to the person, the director may make an assessment against the person in an amount equal to the excess amount.

(4) Subject to subsection (5), in making an assessment under this

section the director must not consider or include a period longer than 4 years before the date of the first notice of assessment.

(5) In making an assessment under this

section in relation to an energy allowance, the director must not consider or include a period longer than 2 years before the date of the first notice of assessment.

(6) Despite subsections (4) and (5), in making an assessment under this

section the director may consider and include any period if the assessment relates to a contravention of this Act or the regulations involving wilful default or fraud.

(7) Despite subsections (4) and (5), the director may enter into a written agreement with a person in which the person waives subsection (4) or (5) and allows the director, in making an assessment under this section, to consider and include any period specified in the agreement.

Penalties

37 In addition to any other penalty, the director may do any of the following:

(

a) if the director is satisfied that a person evaded the payment of tax 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;

(

b) in any case respecting an amount payable to the government under this Act other than a case referred to in paragraph (a), if the director is satisfied that a person failed to pay to the government an amount as required under this Act, impose on the person a penalty equal to 10% of the amount not paid;

(

c) if the director is satisfied that a person obtained an energy allowance 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 of the energy allowance obtained;

(

d) in any case respecting an energy allowance other than a case referred to in paragraph (c), if the director is satisfied that a person obtained an energy allowance to which the person was not entitled, impose on the person a penalty equal to 10% of the energy allowance obtained;

(

e) if the director is satisfied that a registrant

(

i) provided a credit as if it were an energy credit to a person not entitled to the energy credit or failed to provide an energy credit to a person entitled to the energy credit, and

(ii) did not exercise the care, diligence and skill that a reasonably prudent person would have exercised in comparable circumstances,

impose on the registrant a penalty equal to the amount credited to the person who was not entitled to an energy credit or the amount of the energy credit that ought to have been provided to the person.

Notice of assessment

(1) On making an assessment under

section 36 [assessments] or imposing a penalty under

section 37 [penalties] , the director must issue a notice of assessment to the person liable to pay the amount assessed or imposed.

(2) Evidence that a notice of assessment under subsection (1) has been issued is proof, in the absence of evidence to the contrary, that the amount assessed or imposed under this Act is due and owing, and the onus of proving otherwise is on the person liable to pay the amount assessed or imposed.

(3) Subject to being amended, changed or varied on appeal or by reassessment, an assessment made or a penalty imposed under this Act is valid and binding despite any error, defect or omission in the assessment or penalty or in procedure.

Irregularities

39 An assessment made, or a penalty imposed, by the director under this Act must not be varied or disallowed by a court because of an irregularity, informality, omission or error on the part of a person in the observation of any directory provision up to the date of the issuing of the notice of assessment.

Interest on amount payable

(1) Subject to subsection (2), at any time the director may assess interest, calculated at the rate and in the manner prescribed, on an amount payable to the government under this Act from the time it was due or a later prescribed time.

(2) The director must assess interest, calculated at the rate and in the manner prescribed, on an amount payable to the government under

section 11, 12 (2), 16 or 36 (2) or (3) from the time it was due or a later prescribed time.

Part 8 — Appeals

Appeal to minister

(1) An appeal to the minister lies from a decision of the director about any of the following:

(

a) a determination under

section 27 [deemed purchase price] ;

(

b) a determination under

section 18 [director may determine attribution of amount] ;

(

c) an energy rebate;

(

d) a reimbursement under

section 13 [reimbursement of energy credit] ;

(

e) a refund under

Part 6 [Tax Refunds] ;

(

f) an assessment under

section 36 [assessments] or 40 [interest on amount payable] ;

(

g) an imposition of a penalty under

section 37 [penalties] .

(2) Written notice of the appeal must be served on the minister within 90 days after the date on the director's notice of decision.

(3) The appellant must set out in the notice of appeal a statement of all material facts and the reasons in support of the appeal.

(4) On receiving the notice of appeal, the minister must

(

a) consider the matter,

(

b) affirm, amend or change the assessment, decision, amount imposed or nature of the assessment, and

(

c) promptly notify the appellant in writing of the result of the appeal.

Appeal to court

(1) A decision of the minister under

section 41 (4) may be appealed to the Supreme Court by way of an originating application.

(2) The Rules of Court relating to originating applications apply, but Rule 49 does not apply.

(3) A petition must be filed in the court registry within 90 days after the date on the minister's notification of decision.

(4) Within 14 days after the filing of the petition under subsection (3), the petition must be served on the government in accordance with

section 8 of the Crown Proceeding Act and the government must be designated "Her Majesty the Queen in right of the Province of British Columbia".

(5) An appeal under this

section is a new hearing that is not limited to the evidence and issues that were before the minister.

(6) The court may

(

a) dismiss the appeal,

(

b) allow the appeal,

(

c) vary the decision from which the appeal is made, or

(

d) refer the decision back to the director for reconsideration.

(7) An appeal lies from a decision of the court to the Court of Appeal with leave of a justice of the Court of Appeal.

Collection of amount unaffected by pending appeal

(1) Neither the giving of a notice of appeal by a person nor a delay in the hearing of an appeal

(

a) affects the date of payment, the interest or penalties or any liability for payment provided 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.

(2) If the director's or the minister's decision is set aside or the amount of an assessment or an amount imposed is reduced on appeal, the director must refund from the consolidated revenue fund to the appellant

(

a) the amount or excess amount paid, and

(

b) any additional interest or penalty imposed and paid.

Part 9 — Recovery of Amounts Owing

Court action to recover amount owing

44 An amount owing to the government under this Act may be recovered by action in a court.

Summary proceedings without action

(1) If a person fails to pay an amount owing to the government under this Act, the director may issue a certificate specifying the amount owed and the name of the person who owes it.

(2) The director may file with the Supreme Court a certificate issued under subsection (1).

(3) A certificate filed under subsection (2) has the same effect and is enforceable in the same manner as a judgment of the court in favour of the government for the recovery of a debt in the amount specified in the certificate.

Alternate 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.

Attachment of funds

(1) In this section, "taxpayer" means any person who is liable to pay to the government an amount under this Act.

(2) If the director knows or suspects that a person is or is about to become indebted or liable to make a payment to a taxpayer, the director may demand that that person pay to the government on account of the taxpayer's liability under this Act all or part of the money otherwise payable to the taxpayer.

(3) Without limiting subsection (2), if the director knows or suspects that a person is about to advance money to or make a payment on behalf of a taxpayer, or make a payment in respect of a negotiable instrument issued by a taxpayer, the director may demand that that person pay to the government on account of the taxpayer's liability under this Act the money that would otherwise be advanced or paid.

(4) A demand under this

section must be served by

(

a) personal service,

(

b) registered mail, or

(

c) electronic mail or fax.

(5) If under this

section the director demands that a person pay to the government, on account of a taxpayer's liability under this Act, money otherwise payable by that person to the taxpayer as interest, rent, remuneration, a dividend, an annuity or other periodic payment, the demand

(

a) is applicable to all of those payments to be made by the person to the taxpayer until the liability under this Act is satisfied, and

(

b) operates to require payments to the government out of each payment of the amount stipulated by the director in the demand.

(6) Money or a beneficial interest in money in a savings institution

(

a) on deposit to the credit of a taxpayer at the time a demand is served, or

(

b) deposited to the credit of a taxpayer after a demand is served

is money for which the savings institution is indebted to the taxpayer within the meaning of this section, but money on deposit or deposited to the credit of a taxpayer as described in paragraph (

a) or (

b) does not include money on deposit or deposited to the credit of a taxpayer in the taxpayer's capacity as a trustee.

(7) A demand under this

section continues in effect until

(

a) the demand is satisfied, or

(b) 90 days after the demand is served,

whichever is earlier.

(8) Despite subsection (7), if a demand is made in respect of a periodic payment referred to in subsection (5), the demand continues in effect until it is satisfied unless no periodic payment is made or is liable to be made within 90 days after the demand is served, in which case the demand ceases to have effect at the end of that period.

(9) Money demanded from a person by the director under this

section becomes payable

(

a) as soon as the person is served with the demand, if the person is indebted or liable to make a payment to the taxpayer at the time the demand is served, or

(

b) as soon as the person becomes indebted or liable to make a payment to the taxpayer, in any other case.

(10) A person who fails to comply with a demand under subsection (2) or (5) is liable to pay to the government an amount equal to the amount that the person was required to pay under subsection (2) or (5).

(11) A person who fails to comply with a demand under subsection (3) is liable to pay to the government an amount equal to the lesser of

(

a) the aggregate of the money advanced or paid, and

(

b) the amount that the person was required to pay under subsection (3).

(12) The receipt of the director for money paid under this

section is a sufficient discharge of the original liability to the extent of the payment.

(13) Money paid by any person to the director in compliance with a demand under this

section is deemed to have been paid by that person to the taxpayer.

Lien

(1) In this section:

"financing statement" has the same meaning as in the Miscellaneous Registrations Act, 1992 ;

"personal property registry" means the registry under the Personal Property Security Act .

(2) If a person is required to pay an amount to the government under this Act and does not pay that amount, the director may register a lien

(

a) against the real property of the person by registering a certificate of lien in the prescribed form in the appropriate land title office in the same manner that a charge is registered under the Land Title Act , and

(

b) against the personal property of the person by registering a financing statement in the personal property registry.

(3) On registration of a certificate of lien against the real property of a person under subsection (2) (a), a lien is created on the real property against which the lien is registered for the amount remaining unpaid and any related penalty or interest on that amount.

(4) On registration of a lien against the personal property of a person under subsection (2) (b), a lien is created on the personal property in which the person has a legal or equitable interest for the amount remaining unpaid and any related penalty or interest on that amount.

(5) The director may correct the amount referred to in subsection (3) or (4) by registering a new lien in the revised amount and discharging the original lien.

(6) A new lien registered under subsection (5) is deemed to be registered at the same time as the registration it revises.

(7) Despite

section 55 [confidentiality] , on the written request of a person accompanied by the written consent of a named person, the director must disclose in writing whether a lien is registered against the personal or real property of the named person and, if a lien is registered, the amount of the lien and the date of its registration.

Notice of enforcement proceedings

(1) Before taking proceedings for the recovery of an amount owing to the government under this Act, the director must give to the person who owes the amount notice of the director's intention to enforce payment.

(2) Failure to give notice under subsection (1) does not affect the validity of proceedings taken for the recovery of an amount owing under this Act.

Limitation period

(1) In this section, "proceeding" means

(

a) an action for the recovery of an amount owing to the government,

(

b) the filing of a certificate,

(

c) the making of a demand, and

(

d) the registration or enforcement of a lien

under this Act.

(2) A proceeding may be commenced at any time within 7 years after the date of an assessment of the amount claimed in the proceeding.

(3) Despite subsection (2), a proceeding that relates to a contravention of this Act or the regulations and that involves wilful default or fraud may be commenced at any time.

Part 10 — Administrative Agreements and Appropriations

Administrative agreements

(

a) any administrative matter relating to the sales tax agreement and its implementation;

(

b) the administration and enforcement of

Part IX [Goods and Services Tax] of the federal Act.

Appropriations

(1) In this section, "Provincial government" means that part of the government reporting entity referred to in paragraph (a) [government as reported through consolidated revenue fund] of the definition of "government reporting entity" in

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

(2) Despite

section 21 (3) of the Financial Administration Act , the minister may pay from the consolidated revenue fund any amount payable by the government under the sales tax agreement or an agreement entered into under

section 51.

(3) Despite

section 21 (3) of the Financial Administration Act , any tax under

Part IX [Goods and Services Tax] of the federal Act payable by the Provincial government in accordance with the sales tax agreement may be paid from the consolidated revenue fund.

Part 11 — General

Appointment of director

53 The minister may appoint a person as director for the purpose of administering this Act.

Delegation

(1) The director may, in writing, delegate any of the director's powers or duties under this Act.

(2) The delegation under subsection (1) may be to a named person or to a class of persons.

Confidentiality

55 A person who has custody of or control over information or records under this Act must not disclose the information or records to any other person except as follows:

(

a) in the course of administering or enforcing this or another taxation Act;

(

b) in court proceedings relating to this or another taxation Act;

(

c) as provided in, or ordered under,

section 39 (3), 40 (1), 99 (5) or 100 (1) of the Family Relations Act or

section 8 (3) or 9 (2) of the Family Maintenance Enforcement Act ;

(

d) under an agreement that

(

i) is between the government and another government,

(ii) relates to the administration or enforcement of taxation enactments, and

(iii) provides for the disclosure of information and records to and the exchange of similar information with that other government;

Demand for information

(1) In this section:

"insurance agent" has the same meaning as in Division 2 of

Part 6 of the Financial Institutions Act ;

"insurance salesperson" has the same meaning as in Division 2 of

Part 6 of the Financial Institutions Act .

(2) For any purpose related to the administration or enforcement of this Act or the regulations, the director may, by demand notice, require from any person

(

a) a return,

(

b) any information or additional information,

(

c) the production of any records, or

(

d) a written statement.

(3) The director may not impose on a person a requirement under subsection (2) to provide any information or record relating to an unnamed third party unless the director is imposing the requirement

(

a) on an insurance agent or insurance salesperson in respect of an insurance contract relating to designated property effected on behalf of an unnamed third party by the insurance agent or insurance salesperson,

(

b) on a common carrier in respect of a contract to transport designated property entered into with the common carrier by an unnamed third party,

(

c) on a person who owns or operates a marina, shipyard or airport or provides storage or other services in respect of designated property for an unnamed third party, or

(

d) on a prescribed person in respect of prescribed information or records or a prescribed matter in respect of designated property.

(4) A demand notice under subsection (2)

(

a) must be served by personal service, registered mail, electronic mail or fax,

(

b) must specify a reasonable time by which the person must comply with the demand notice, and

(

c) in relation to a requirement under subsection (2) (d), may require the written statement to be made by way of affidavit or statutory declaration.

(5) A person on whom a demand notice is served under this

section must comply with the notice within the time specified in the notice.

(6) An affidavit by the director in which are stated the facts necessary to establish

(

a) compliance by the director with this section, or

(

b) default by a person on whom a demand was made under this

section

must be admitted as evidence in any court and is proof, in the absence of evidence to the contrary, of the facts stated.

Service of notices

(1) If service of a notice or other document by the director is required or authorized under this Act, the notice or document is conclusively deemed to have been served if

(

a) served on the person,

(

b) sent by registered mail to the last known address of the person according to the records of the director, or

(

c) sent by electronic mail or fax to the last known electronic mail address or fax number of the person according to the records of the director.

(2) If service of a notice or other document on the minister is required or authorized under this Act, the notice or document is conclusively deemed to have been served if delivered to the office of the deputy minister.

(3) If service under subsection (1) is by registered mail, electronic mail or fax, the notice or document is conclusively deemed to have been served when sent.

(4) If a person carries on business under a name or style other than the person's own name, the notice or document may be addressed to the name or style under which the person carries on business and, in the case of personal service, is deemed to have been validly served if it was left with an adult employed at the place of business of the addressee.

(5) If persons carry on business in partnership, the notice or document may be addressed to the partnership name and, in the case of personal service, is deemed to have been validly served if it was served on one of the partners or left with an adult employed at the place of business of the partnership.

(6) In the case of personal service, a notice or document is deemed to have been validly served

(

a) on a corporation, if it was delivered to any member of the board of directors, senior officer, liquidator or receiver manager of the corporation, and

(

b) on an extraprovincial corporation, if it was delivered to a person referred to in paragraph (

a) or to an attorney for the extraprovincial corporation.

(7) Proof of the receipt by a person of any notice or document may be established in any court by showing that the notice or document was served or sent in a manner provided in this section, and the burden of proof is on the person seeking to establish the fact that the notice or document was not received by the person.

(8) In a prosecution or any proceeding for any matter arising under this Act, the facts necessary to establish compliance on the part of the director with this

section may be sufficiently proved in any court by the production of an affidavit of the director setting out the facts.

Part 12 — Offences and Penalties

Offences and penalties

(1) A person who contravenes

section 55 [confidentiality] commits an offence and is liable to a fine of not more than $2 000.

(2) A person who does any of the following commits an offence:

(

a) makes, or participates in, assents to or acquiesces in the making of, a false or deceptive statement in an application, return, or other document required to be submitted or made under this Act;

(

b) makes, or participates in, assents to or acquiesces in the making of, a false or deceptive statement in order to obtain an energy allowance;

(

c) destroys, alters, mutilates, hides or otherwise disposes of a record to evade payment of an amount payable to the government under this Act;

(

d) makes, or participates in, assents to or acquiesces in the making of, a false or deceptive entry in a record related to an amount to be paid to the government under this Act;

(

e) omits, or participates in, assents to or acquiesces in the omission of, a material particular in a record related to an amount to be paid to the government under this Act;

(

f) refuses to produce a record, or hinders, molests or interferes with an inspection, audit or examination, or prevents or attempts to prevent a person from carrying out an inspection, audit or examination under this Act;

(

g) wilfully, in any manner, fails to comply with this Act or the regulations;

(

h) wilfully, in any manner, evades or attempts to evade compliance with this Act or the regulations or payment of an amount payable to the government under this Act;

(

i) conspires with any person to do anything described in paragraphs (

a) to (h).

(3) A person who commits an offence under subsection (2) is liable

(

a) to a fine of not more than $10 000 or to imprisonment for not more than 2 years or to both fine and imprisonment, and

(

b) in addition, to a fine equal to the amount of any tax not paid.

(4) In a prosecution under subsection (2), a certificate signed by the director stating the amount of tax referred to in subsection (3) (

b) is evidence of the amount of tax referred to in subsection (3) (b).

Onus of proof

59 In a prosecution for failure to pay an amount under this Act, the onus is on the accused to prove that the amount was paid to the government.

Evidence — notice of assessment

60 In a prosecution, a notice of assessment issued under this Act is evidence that the amount stated in the notice of assessment is due and owing.

Offence by corporation

61 If a corporation commits an offence under this Act, an employee, officer, member of the board of directors or agent of the corporation who authorized, permitted or acquiesced in the offence also commits that offence, whether or not the corporation is prosecuted or convicted.

Time limit on prosecution

62 The time limit for laying an information for an offence under this Act is 6 years after the date that the facts on which the information is based arose.

Section 5 of Offence Act

Section 5 [general offence] of the Offence Act does not apply to this Act or the regulations.

Part 13 — Regulations

General regulation powers

(1) The Lieutenant Governor in Council may make regulations referred to in

section 41 of the

Interpretation Act .

(2) Without limiting subsection (1), the Lieutenant Governor in Council may make regulations respecting any matter for which regulations by the Lieutenant Governor in Council are contemplated by this Act.

(3) The authority to make regulations under another provision of this Act does not limit subsection (1) or (2).

(4) The Lieutenant Governor in Council may make regulations as follows:

(

a) defining a word or expression used but not defined in this Act;

(

b) providing for exemptions from one or more provisions of this Act, including, without limitation, regulations doing one or more of the following:

(

i) providing a full or partial exemption from the payment of tax under a provision of this Act;

(ii) establishing circumstances in which an exemption applies;

(iii) setting conditions of, or limitations on, the application of an exemption;

(

c) respecting interest rates and the manner of calculating interest for the purposes of this Act;

(

d) respecting records to be kept by

(

i) persons who must pay tax under this Act or who are exempt from paying tax under this Act, other than by reason of an exemption under

section 26, and

(ii) registrants who must provide an energy credit.

(5) In making a regulation under this Act, the Lieutenant Governor in Council may do one or more of the following:

(

a) delegate a matter to a person;

(

b) confer a discretion on a person;

(

c) make different regulations for different persons, designated property, energy products, places, things, uses or transactions, or classes of persons, designated property, energy products, places, things, uses or transactions;

(

d) establish or define classes of persons, designated property, energy products, places, things, uses or transactions.

(6) A regulation made before July 1, 2012 under this Part may be made retroactive to May 1, 2010 or a later date, and if made retroactive is deemed to have come into force on the specified date.

Regulations in relation to residential energy

credit and rebate

65 The Lieutenant Governor in Council may make regulations as follows:

(

a) respecting the provision of an energy credit, including, without limitation, the following:

(

i) determining the amount of a credit;

(ii) establishing the circumstances in which a credit must not be provided;

(

b) respecting the duties of a registrant required to provide an energy credit;

(

c) respecting the payment of an energy rebate, including, without limitation, the following:

(

i) determining the amount of a rebate;

(ii) establishing the circumstances in which a rebate must not be paid;

(

d) respecting applications for an energy rebate;

(

e) respecting the payment of a reimbursement under

section 13, including, without limitation, the following:

(

i) determining the amount of a reimbursement;

(ii) establishing the circumstances in which a reimbursement must not be paid;

(

f) respecting applications for a reimbursement under

section 14.

Regulations in relation to tax on

vehicles, boats and aircraft

66 The Lieutenant Governor in Council may make regulations as follows:

(

a) respecting the manner of payment of tax under this Act, the filing of returns for the payment of tax and any other conditions or requirements affecting the payment of tax;

(

b) for the purposes of

section 30 [refund authorized or required under regulations] , providing for a refund of all or part of tax paid under this Act, including, without limitation, regulations doing one or more of the following:

(

i) permitting or requiring the payment of a refund to a person or a class of persons;

(ii) establishing circumstances in which a refund may or must be paid;

(iii) setting conditions of, or limitations on, the payment of a refund.

Regulations in relation to residential property rebates

67 The Lieutenant Governor in Council may make regulations respecting the issuance by the director of a statement respecting amounts owing to the government by a person for the purpose of a rebate in respect of residential property in British Columbia under

section 256.21 of the federal Act, including, without limitation, the following:

(

a) establishing the circumstances in which a statement may be issued;

(

b) establishing the circumstances in which a statement may be revoked;

(

c) setting conditions of, or limitations on, a statement;

(

d) respecting fees for a statement or an application for a statement.

Part 14 — Plans and Reports Respecting Health Funding

Preparation of plans and reports

(1) In this section:

"health-related revenues" , in relation to a fiscal year, means the following amounts to be or that have been collected or received by the government or credited in the fiscal year:

(

a) the amount equal to the total of all amounts provided to the government as a Canada Health Transfer under the Federal-Provincial Fiscal Arrangements Act (Canada);

(

b) the amount equal to the total of all amounts provided to the government as a Wait Times Reduction Transfer under the Federal-Provincial Fiscal Arrangements Act (Canada);

(

d) the amount equal to the revenue collected under the Tobacco Tax Act ;

(

e) the amount equal to the premiums collected under the Medicare Protection Act ;

(

f) the amount equal to the amounts credited to the Health Special Account under the Health Special Account Act ;

"health spending by function" , in relation to a fiscal year, means the estimated or actual health expenses for the fiscal year as set out in the statement of expense by function in the fiscal forecast referred to in

section 7 (1) (

a) of the Budget Transparency and Accountability Act for the fiscal year.

(2) The minister must annually prepare

(

a) a health funding plan that meets the requirements set out in subsection (3), and

(

b) a health funding report that meets the requirements set out in subsection (4).

(3) A health funding plan must

(

a) cover 3 consecutive fiscal years of the government beginning with the fiscal year following the fiscal year in which the plan is presented to the Legislative Assembly under

section 69, and

(

b) set out the following for each fiscal year covered by the plan:

(

i) a forecast of health-related revenues;

(ii) a forecast of health spending by function.

(4) A health funding report must

(

a) cover 2 consecutive fiscal years of the government, ending with the fiscal year in which the report is presented to the Legislative Assembly under

section 69, and

(

b) set out the following for each fiscal year covered by the report:

(

i) the estimated or, if known, actual health-related revenues;

(ii) the estimated or, if known, actual health spending by function incurred.

Plans and reports presented to Legislative Assembly

69 At the same time that the main estimates for a fiscal year are presented to the Legislative Assembly, the minister must also present the following to the Legislative Assembly:

(

a) the health funding plan referred to in

section 68 (2) (

a) for the fiscal year for which the main estimates are presented and the 2 subsequent fiscal years;

(

b) the health funding report referred to in

section 68 (2) (

b) for the 2 fiscal years preceding the fiscal year for which the main estimates are presented.

Part 15 — Transitional Provisions

Transition — regulations

(1) Despite this or any other Act, the Lieutenant Governor in Council may make regulations as follows:

(

a) respecting any matter that the Lieutenant Governor in Council considers is not provided for, or is not sufficiently provided for, in this Act;

(

b) making provisions that the Lieutenant Governor in Council considers appropriate for the purpose of more effectively bringing this Act into operation;

(

c) making provisions that the Lieutenant Governor in Council considers appropriate for the purpose of preventing, minimizing or otherwise addressing any transitional difficulties in bringing this Act into effect, including, without limitation, provisions making an exception to or a modification of a provision in an enactment or providing for the application or continued application of a previous enactment;

(

d) resolving any errors, inconsistencies or ambiguities in this Act.

(2) A regulation under subsection (1) may be made retroactive to May 1, 2010 or a later date, and if made retroactive is deemed to have come into force on the specified date.

(3) To the extent of any conflict between a regulation under subsection (1) and another enactment, the regulation prevails.

Transition — health funding report

71 Despite sections 68 and 69, the health funding report referred to in

section 68 (2) (

b) that is presented to the Legislative Assembly at the same time that the main estimates for the 2011-2012 fiscal year are presented to the Legislative Assembly must cover only the 2010-2011 fiscal year.

Transition — Balanced Budget and Ministerial

Accountability Act

72 Despite sections 163 to 167 of this Act, sections 1 and 5 to 9 of the Balanced Budget and Ministerial Accountability Act and the regulations made for the purposes of

section 5 (2) of that Act, as they read on February 14, 2011, continue to apply in respect of the restoration of the reduction in salary of the revenue minister for the 2010-2011 fiscal year.

Transition — Income Tax Act

73 For the purpose of applying the definition of "eligible individual" in

section 8.2 of the Income Tax Act in relation to the specified month of July 2010, the reference in paragraph (

b) of that definition to "the preceding specified month" must be read as a reference to "on April 1, 2010".

Part 16 — Amendments to Hotel Room Tax Act

Section 1 of the Hotel Room Tax Act , R.S.B.C. 1996, c. 207, is amended by adding the following definition:

"accommodation period" means a period of accommodation for which there is a separate purchase price; .

75 The following

section is added:

Transition — application of sections 2 and 3.1

1.6

(1) Tax is payable by a purchaser under sections 2 (1), (3) and (4) and 3.1 in respect of a purchase of accommodation

(

a) if, before May 1, 2010, the purchase price of the accommodation becomes due or is paid without having become due,

(

b) if the accommodation period begins before July 1, 2010 and ends before July 31, 2010,

(

c) if the accommodation period begins before July 1, 2010 and ends on or after July 31, 2010, or

(

d) if

(

i) before May 1, 2010, only a portion of the consideration for the accommodation becomes due or is paid without having become due, and

(ii) the accommodation period begins on or after July 1, 2010.

(2) Tax is not payable by a purchaser under sections 2 (1), (3) and (4) and 3.1 in respect of a purchase of accommodation if

(

a) all of the consideration for the accommodation becomes due on or after May 1, 2010,

(

b) none of the consideration for the accommodation is paid before May 1, 2010, and

(

c) the accommodation period begins on or after July 1, 2010.

(3) If tax is payable under sections 2 (1), (3) and (4) and 3.1 by reason only of subsection (1) (

c) of this section, for the purpose of calculating the tax payable under those sections, the purchase price of the accommodation is deemed to be the amount equal to the purchase price of the accommodation less that portion of the consideration for the accommodation that

(

a) is not paid before May 1, 2010,

(

b) becomes due on or after May 1, 2010, and

(

c) is attributable to the portion of the accommodation period that is on or after July 1, 2010.

(4) If tax is payable under sections 2 (1), (3) and (4) and 3.1 by reason of subsection (1) (

d) of this section, for the purpose of calculating the tax payable under those sections, the purchase price of the accommodation is deemed to be the amount equal to the purchase price of the accommodation less that portion of the consideration for the accommodation that is not paid before May 1, 2010 and becomes due on or after May 1, 2010.

(5) Sections 4.8 (2), 4.81, 4.82 (1), (3) (

a) and (4) and 4.83 of the Social Service Tax Act apply for the purposes of this

section as if this

section were an application section, except that

(

a) a reference in those sections to "tangible personal property" is to be read as "accommodation", and

(

b) a reference in those sections to "vendor" is to be read as "operator".

(6) For the purposes of this section,

(

a) the director may determine the consideration for accommodation acquired by a purchaser, and

(

b) if the director makes a determination under paragraph (a), the consideration for the accommodation is as determined by the director.

Section 2 is amended

(

a) in subsection (3) by striking out " In addition to the tax payable under subsection (4) and sections 3 and 3.1, a purchaser " and substituting " A purchaser ", and

(

b) in subsection (4) by striking out " In addition to the tax payable under subsection (3) and sections 3 and 3.1, a purchaser " and substituting " A purchaser ".

Section 3 is amended

(

a) in subsection (1) by striking out everything after " the purchaser " and substituting " must, at the time of purchasing the accommodation, pay to the municipality, regional district or eligible entity, as the case may be, a tax at the prescribed rate on the purchase price of the accommodation. ", and

(

b) in subsection (6) by striking out " and sections 2 and 3.1 is 10% " and substituting " is 2% ".

Section 3.1 is amended by striking out " In addition to the tax payable under

section 2, a person " and substituting " A person ".

Section 4 (1) is amended by striking out " British Columbia " and substituting " an area in respect of which

section 3 is declared to apply ".

Section 9 is amended by adding the following subsections:

(3.1) Despite subsection (3), an operator may not deduct an amount under that subsection in relation to an amount owing by the purchaser that includes tax payable under

section 2 (1), (3) or (4) or 3.1 unless the operator has written off the amount owing before July 1, 2010.

(5) Subsection (6) applies to an operator if

(

a) the operator has obtained a refund under subsection (1) or made a deduction under subsection (3) in relation to an amount owing by the purchaser that includes tax payable under

section 2 (1), (3) or (4) or 3.1, and

(

b) the operator recovers, on or after July 1, 2010, some or all of the amount with respect to which the refund was paid or the deduction was made.

(6) Despite subsection (4), an operator to whom this subsection applies must

(

a) immediately report the matter in writing to the director,

(

b) supply to the director all pertinent information required by the director in respect of the amount recovered, and

(

c) pay to the government, at the prescribed time and in the prescribed manner, an amount, determined in the prescribed manner, in respect of the amount recovered.

81 The following

section is added:

Refunds authorized or required under the regulations

10.1 The director

(

a) if authorized by the regulations, may pay a refund out of the consolidated revenue fund of all or part of tax paid under this Act by an applicant for a refund, and

(

b) if required by the regulations, must pay a refund out of the consolidated revenue fund of all or part of tax paid under this Act by an applicant for a refund.

Section 12 (1) (

b) is amended by striking out " refund made " and substituting " refund made, subject to the regulations, ".

Section 17 is amended by adding the following subsections:

(3.01) The director must not make an assessment under subsection (3) if the tax due is tax payable by a person who the director is satisfied is eligible for a prescribed refund.

(7.1) The director must not impose a penalty under subsection (7) if the tax that was not collected is tax payable by a person who the director is satisfied is eligible for a prescribed refund.

Section 43 (2) is amended by adding the following paragraphs:

(

o) respecting the payment of an amount under

section 9 (6) and any other conditions or requirements affecting the payment of that amount;

(

p) prescribing, for the purposes of

section 12 (1) (b), a period after the date on which an amount claimed was paid, which periods may be different for different refunds;

(

q) prescribing refunds for the purposes of

section 17 (3.01) and (7.1).

85 The following sections are added:

Regulations in relation to refunds

(1) Without limiting

section 43 (1), for the purposes of

section 10.1 [refunds authorized or required under the regulations] , the Lieutenant Governor in Council may make regulations providing for a refund of all or part of tax paid under this Act, including, without limitation, regulations doing one or more of the following:

(

a) permitting or requiring the payment of a refund to a person or a class of persons;

(

b) establishing circumstances in which a refund may or must be paid;

(

c) setting conditions of, or limitations on, the payment of a refund.

(2) In making a regulation under subsection (1), the Lieutenant Governor in Council may do one or more of the following:

(

a) delegate a matter to a person;

(

b) confer a discretion on a person;

(

c) make different regulations for different persons.

Regulations in relation to price reductions

(1) Without limiting

section 43 (1), the Lieutenant Governor in Council may make regulations respecting refunds of tax paid under this Act or a reduction of tax payable under this Act to be made by an operator to a purchaser if the purchase price of the accommodation is reduced after tax imposed under this Act is payable.

(2) In making a regulation under subsection (1), the Lieutenant Governor in Council may make different regulations for different operators or accommodation or for different classes of operators or accommodation.

Regulations applying provisions of Excise Tax Act (Canada)

47 The Lieutenant Governor in Council may make regulations as follows:

(

a) applying one or more provisions of the Excise Tax Act (Canada) for the purposes of this Act;

(

b) prescribing modifications the Lieutenant Governor in Council considers appropriate to a provision applied under paragraph (a).

Regulations — transitional

(1) Despite this or any other Act, the Lieutenant Governor in Council may make regulations as follows:

(

a) respecting any matter that the Lieutenant Governor in Council considers is not provided for, or is not sufficiently provided for, by the amendments to this Act made by the Consumption Tax Rebate and Transition Act ;

(

b) making provisions that the Lieutenant Governor in Council considers appropriate for the purpose of more effectively bringing into operation the amendments to this Act made by the Consumption Tax Rebate and Transition Act ;

(

c) making provisions that the Lieutenant Governor in Council considers appropriate for the purpose of preventing, minimizing or otherwise addressing any transitional difficulties encountered in bringing into effect the amendments to this Act made by the Consumption Tax Rebate and Transition Act , including, without limitation, provisions making an exception to or a modification of a provision in an enactment or providing for the application or continued application of a previous enactment;

(

d) resolving any errors, inconsistencies or ambiguities arising from the amendments to this Act made by the Consumption Tax Rebate and Transition Act .

(2) To the extent of any conflict between a regulation under subsection (1) and another enactment, the regulation prevails.

(3) This

section is repealed on July 1, 2011.

Regulations may be made retroactive

49 A regulation made before July 1, 2011 under this Part may be made retroactive to May 1, 2010 or a later date, and if made retroactive is deemed to have come into force on the specified date.

Part 17 — Amendments to Social Service Tax Act

Section 1 (1) of the Social Service Tax Act , R.S.B.C. 1996, c. 431, is amended by adding the following definition:

"substantially" means 90% or more; .

Section 1 (1) is amended in paragraph (

b) of the definition of "tax" by adding " 4.85, " after " sections " and by adding " 96.1, " after " 96 (7), ".

Section 1 (1) is amended

(

a) in paragraph (

b) of the definition of "tax" by striking out " 92, ",

(

b) in paragraph (

e) of the definition of "use" by striking out " sections 9 (1) and 11 (1) (b), " and substituting "

section 11 (1) (b), ", and

(

c) in paragraph (

g) of the definition of "use" by striking out " tangible personal property, other than reusable containers referred to in

section 8, " and substituting " tangible personal property ".

Section 1 is amended by adding the following subsection:

(5) For the purposes of this Act, if there is a reference in this Act to a repealed provision of this Act, the repealed provision must be construed as not being repealed so far as is necessary to give effect to the reference in this Act to that repealed provision.

Section 4 is amended by adding the following paragraph:

(

f) under an agreement that

(

i) is between the government and the South Coast British Columbia Transportation Authority,

(ii) relates to the tax on the purchase of parking rights under Division 8 of

Part 2, and

(iii) provides for the disclosure of information and records to and the exchange of similar information and records with the South Coast British Columbia Transportation Authority.

91 The following

Part is added:

Part 1.2 — Transitional Rules

Definitions

4.8

(1) In this Part, "application sections" means sections 5.1, 10.1, 15.1, 20.01, 21.01, 22.01, 37.1, 40.1, 47.1, 54.1 and 68.22.

(2) In this Part and in the application sections, "consideration" has the same meaning as in

Part IX [Goods and Services Tax] of the Excise Tax Act (Canada).

When consideration becomes due

4.81

(1) For the purposes of the application sections, all or a portion of the consideration for the purchase or lease of tangible personal property, a taxable service, legal services or a telecommunication service becomes due on the earliest of the following:

(

a) the earlier of

(

i) the day the vendor or lessor first issues an invoice in respect of the sale or lease for that consideration or portion of that consideration, and

(ii) the date of the invoice;

(

b) the day the vendor or lessor would have issued an invoice in respect of the sale or lease for that consideration or portion of that consideration but for an undue delay;

(

c) the day the purchaser or lessee is required to pay that consideration or portion of that consideration to the vendor or lessor under a written agreement.

(2) Despite subsection (1), if tangible personal property, a taxable service, legal services or a telecommunication service is supplied by means of a lease, licence or similar arrangement under a written agreement, for the purposes of the application sections, all or a portion of the consideration for the property or service becomes due on the day the purchaser or lessee is required to pay the consideration or portion of the consideration to the vendor or lessor under the agreement.

(3) For the purposes of the application sections and this section, if consideration that is not money is given or required to be given,

(

a) the consideration that is given is deemed to be paid, and

(

b) the consideration that is required to be given is deemed to be required to be paid.

When purchase price or lease price becomes due

4.82

(1) For the purposes of the application sections except sections 20.01, 21.01 and 22.01, all or a portion of the purchase price of tangible personal property, a taxable service, legal services or a telecommunication service becomes due on the earliest of the following:

(

a) the earlier of

(

i) the day the vendor first issues an invoice in respect of the sale for that purchase price or portion of that purchase price, and

(ii) the date of the invoice;

(

b) the day the vendor would have issued an invoice in respect of the sale for that purchase price or portion of that purchase price but for an undue delay;

(

c) the day the purchaser is required to pay that purchase price or portion of that purchase price to the vendor under a written agreement.

(2) For the purposes of sections 20.01, 21.01 and 22.01, all or a portion of the lease price of leased property becomes due on the earliest of the following:

(

a) the earlier of

(

i) the day the lessor first issues an invoice in respect of the lease for that lease price or portion of that lease price, and

(ii) the date of the invoice;

(

b) the day the lessor would have issued an invoice in respect of the lease for that lease price or portion of that lease price but for an undue delay;

(

c) the day the lessee is required to pay that lease price or portion of that lease price to the lessor under a written agreement.

(3) Despite subsections (1) and (2), if tangible personal property, leased property, a taxable service, legal services or a telecommunication service is supplied by means of a lease, licence or similar arrangement under a written agreement, for the purposes of the application sections,

(

a) all or a portion of the purchase price for the tangible personal property, taxable service, legal services or telecommunication service becomes due on the day the purchaser is required to pay that purchase price or portion of that purchase price to the vendor under the agreement, and

(

b) all or a portion of the lease price for the leased property becomes due on the day the lessee is required to pay that lease price or portion of that lease price to the lessor under the agreement.

(4) For the purposes of the application sections and this section, if consideration that is not money is given or required to be given on account of the purchase price or lease price,

(

a) the consideration that is given is deemed to be paid, and

(

b) the consideration that is required to be given is deemed to be required to be paid.

Deposits

4.83 For the purposes of the application sections, a deposit, whether refundable or not, given in respect of a supply is not consideration paid for the supply unless and until the supplier applies the deposit as consideration for the supply.

Determinations by commissioner

4.84

(1) For the purposes of

section 20.01 (3), 20.3 (3), 21.01 (3), 22.01 (3), 37.1 (4), 40.1 (3), 41.1 (3), 47.1 (3) or 54.1 (3), if the commissioner believes that the attribution by the taxpayer of the consideration, lease price, price or purchase price under the

section is not an appropriate attribution, the commissioner may determine the attribution of the consideration, lease price, price or purchase price for the purposes of that section.

(2) For the purposes of the application sections,

(

a) the commissioner may determine the consideration for tangible personal property that

(

i) passes at a sale,

(ii) is brought or sent into British Columbia, or

(iii) is delivered in British Columbia, and

(

b) if the commissioner makes a determination under paragraph (a), the consideration for the tangible personal property is as determined by the commissioner under that paragraph.

(3) For the purposes of the application sections,

(

a) the commissioner may determine the consideration for a lease of leased property, and

(

b) if the commissioner makes a determination under paragraph (a), the consideration for the leased property is as determined by the commissioner under that paragraph.

(4) For the purposes of the application sections,

(

a) the commissioner may determine the consideration for a provision of a taxable service, legal services or a telecommunication service, and

(

b) if the commissioner makes determination under paragraph (a), the consideration for the taxable service, legal services or telecommunication service is as determined by the commissioner under that paragraph.

Time when tax must be paid

4.85

(1) Despite any other provision of this Act or the regulations, but subject to subsection (2), tax imposed by this Act that is not otherwise payable on or before December 31, 2010 must be paid by December 31, 2010.

(2) Subsection (1) does not apply

(

a) to penalties and interest that are or may be added to tax under this Act,

(

b) to tax payable under

section 25 (1), or

(

c) if the time at which the tax is payable is otherwise provided for by regulation under

section 93.1 (7) or 140.

Section 5 (1.1) is repealed.

93 The following

section is added:

Transition — application of

section 5

5.1

(1) The

definitions of "magazines", "newspapers" and "periodicals" in

section 1 (1) do not apply to the first reference to a form of those words in subsection (2) of this section.

(2) In this section, "publication" means a magazine, newspaper or periodical other than a magazine, newspaper or periodical exempt from tax under

section 5.

(3) Subject to subsection (4), tax is payable by a purchaser under

section 5 in respect of a purchase of tangible personal property

(

a) if, before May 1, 2010, the consideration for the tangible personal property becomes due or is paid without having become due,

(

b) if, before July 1, 2010, ownership of the tangible personal property is transferred or the tangible personal property is delivered to the purchaser, or

(

c) if,

(

i) before May 1, 2010, only a portion of the consideration for the tangible personal property becomes due or is paid without having become due, and

(ii) on or after July 1, 2010, ownership of the tangible personal property is transferred and the tangible personal property is delivered to the purchaser.

(4) Tax is payable by a purchaser under

section 5 in respect of a purchase of tangible personal property that is a subscription for a publication if a portion of the consideration for the subscription becomes due before July 1, 2010 or is paid before July 1, 2010 without having become due.

(5) Subject to subsection (6), tax is not payable by a purchaser under

section 5 in respect of a purchase of tangible personal property if

(

a) all of the consideration for the tangible personal property becomes due on or after May 1, 2010,

(

b) none of the consideration for the tangible personal property is paid before May 1, 2010, and

(

c) on or after July 1, 2010, ownership of the tangible personal property is transferred and the tangible personal property is delivered to the purchaser.

(6) Tax is not payable by a purchaser under

section 5 in respect of a purchase of tangible personal property that is a subscription for a publication if

(

a) all of the consideration for the subscription becomes due on or after July 1, 2010, and

(

b) none of the consideration for the subscription is paid before July 1, 2010.

(7) If tax is payable under

section 5 by reason of subsection (3) (

c) of this section, for the purpose of calculating the tax payable under

section 5, the purchase price of the tangible personal property is deemed to be the amount equal to the purchase price of the tangible personal property less that portion of the consideration for the tangible personal property that is not paid before May 1, 2010 and becomes due on or after May 1, 2010.

(8) If, in respect of a purchase of propane, tax is payable under

section 5 by reason of subsection (3) (

c) of this section, for the purpose of calculating the tax payable under

section 5 as determined under

section 6 (5), tax is payable in respect of the volume of propane determined by the following formula:

volume = total volume x

portion of purchase price

purchase price

where

total volume

the total volume of the propane;

portion of purchase price

the purchase price of the propane less that portion of the purchase price of the propane that is not paid before May 1, 2010 and becomes due on or after May 1, 2010;

purchase price

the purchase price of the propane.

(9) If tax is payable under

section 5 by reason of subsection (4) of this section, for the purpose of calculating the tax payable under

section 5, the purchase price of the tangible personal property that is a subscription for a publication is deemed to be the amount equal to the purchase price of the subscription less that portion of the consideration for the subscription that is not paid before July 1, 2010 and becomes due on or after July 1, 2010.

Section 6 (5) is amended by striking out " the rate established under the Motor Fuel Tax Act in respect of propane that is subject to tax under that Act. " and substituting " 2.7 cents per litre of propane. "

Section 7 (1) is amended by adding " that will be in effect before July 1, 2010 " after " special occasion licence ".

96 The following

section is added:

Transition — application of

section 7

7.1

(1) Tax is payable under

section 7 in respect of liquor acquired for sale under a special occasion licence if

(

a) the licence is purchased before May 1, 2010, or

(

b) the licence is in effect before July 1, 2010.

(2) Tax is not payable under

section 7 in respect of liquor acquired for sale under a special occasion licence if

(

a) the licence is purchased on or after May 1, 2010, and

(

b) the licence is in effect only on or after July 1, 2010.

97 Sections 8 and 9 are repealed.

98 The following

section is added:

Transition — application of

section 10

10.1

(1) Tax is payable by a purchaser under

section 10 in respect of the tangible personal property sold

(

a) if, before May 1, 2010, the consideration for the tangible personal property sold becomes due or is paid without having become due,

(

b) if, before July 1, 2010, ownership of the tangible personal property sold is transferred or the tangible personal property sold is delivered to the purchaser, or

(

c) if,

(

i) before May 1, 2010, only a portion of the consideration for the tangible personal property sold becomes due or is paid without having become due, and

(ii) on or after July 1, 2010, ownership of the tangible personal property sold is transferred and the tangible personal property sold is delivered to the purchaser.

(2) Tax is not payable by a purchaser under

section 10 in respect of the tangible personal property sold if

(

a) all of the consideration for the tangible personal property sold becomes due on or after May 1, 2010,

(

b) none of the consideration for the tangible personal property sold is paid before May 1, 2010, and

(

c) on or after July 1, 2010, ownership of the tangible personal property sold is transferred and the tangible personal property sold is delivered to the purchaser.

(3) If tax is payable under

section 10 by reason of subsection (1) (

c) of this section, for the purpose of calculating the tax payable under

section 10, the purchase price of the tangible personal property sold is deemed to be the amount equal to the purchase price of the tangible personal property sold less that portion of the consideration for the tangible personal property sold that is not paid before May 1, 2010 and becomes due on or after May 1,

Section 11 is amended

(

a) in subsection (1) (a) (ii) by adding " before July 1, 2010, " before " brings or sends ",

(

b) in subsection (1) (b) (ii) by adding " before July 1, 2010 " after " delivery of in British Columbia ", and

(

c) in subsection (3) by striking out " Unless

section 112.3 (1) or (2) applies, a person " and substituting " A person ".

Section 14 is amended

(

a) in subsections (1) (

a) and (2) by striking out " 23 days, or other prescribed period, " and substituting " 23 days ", and

(

b) by repealing subsection (1) (

b) to (

d) and substituting the following:

(

b) for tangible personal property that is described in

section 13 (1) (

a) to (d), within 23 days after the last day of the month in which the property is brought or sent into, or is delivered in, British Columbia; .

Section 15 (1) is amended by striking out " This

section " and substituting " Subject to

section 15.1, this

section ".

Section 15 is amended

(

a) in subsection (1) (

a) by striking out " or is deemed under

section 9 (1) to be a purchaser of ",

(

b) in subsection (1) (

b) by striking out " or the date on which the person is deemed to be a purchaser ", and

(

c) in subsection (2) by striking out " or at the time specified in

section 9 (1) ".

103 The following

section is added:

Transition — application of

section 15

15.1

(1) Tax is payable by a person under

section 15 in respect of an aircraft, vessel, railway rolling stock or other conveyance

(

a) if, before May 1, 2010, the consideration for the conveyance becomes due or is paid without having become due,

(

b) if, before July 1, 2010, ownership of the conveyance is transferred or the conveyance is delivered to the person, or

(

c) if,

(

i) before May 1, 2010, only a portion of the consideration for the conveyance becomes due or is paid without having become due, and

(ii) on or after July 1, 2010, ownership of the conveyance is transferred and the conveyance is delivered to the person.

(2) Tax is not payable by a person under

section 15 in respect of an aircraft, vessel, railway rolling stock or other conveyance if

(

a) all of the consideration for the conveyance becomes due on or after May 1, 2010,

(

b) none of the consideration for the conveyance is paid before May 1, 2010, and

(

c) on or after July 1, 2010, ownership of the conveyance is transferred and the conveyance is delivered to the person.

(3) If tax is payable under

section 15 by reason of subsection (1) (

c) of this section, for the purpose of calculating the tax payable under

section 15, the purchase price of the tangible personal property that is the conveyance is deemed to be the amount equal to the purchase price of the tangible personal property less that portion of the consideration for the tangible personal property that is not paid before May 1, 2010 and becomes due on or after May 1, 2010.

Section 16 (2) is amended by adding " before July 1, 2010 " after " property into British Columbia " and after " property in British Columbia ".

Section 19 (1) is amended by striking out " 9 (1), (1.1), (1.3), (2) or (3.2), " and by striking out " or 31 (1) ".

Section 20 (1) is amended by adding " 20.01, " after " sections ".

107 The following

section is added:

Transition — application of

section 20

20.01

(1) Tax is payable by a lessee under

section 20 in respect of leased property

(

a) if, before May 1, 2010, the consideration for the leased property becomes due or is paid without having become due,

(

b) if the rental period under the lease begins before July 1, 2010 and ends before July 31, 2010,

(

c) if the rental period under the lease begins before July 1, 2010 and ends on or after July 31, 2010, or

(

d) if

(

i) before May 1, 2010, only a portion of the consideration for the leased property becomes due or is paid without having become due, and

(ii) the rental period under the lease begins on or after July 1, 2010.

(2) Tax is not payable by a lessee under

section 20 in respect of leased property if

(

a) all of the consideration for the leased property becomes due on or after May 1, 2010,

(

b) none of the consideration for the leased property is paid before May 1, 2010, and

(

c) the rental period under the lease begins on or after July 1, 2010.

(3) If tax is payable under

section 20 by reason only of subsection (1) (

c) of this section, for the purpose of calculating the tax payable under

section 20, the lease price of the leased property is deemed to be the amount equal to the lease price of the leased property less that portion of the consideration for the leased property that

(

a) is not paid before May 1, 2010,

(

b) becomes due on or after May 1, 2010, and

(

c) is attributable to the portion of the rental period that is on or after July 1, 2010.

(4) If tax is payable under

section 20 by reason of subsection (1) (

d) of this section, for the purpose of calculating the tax payable under

section 20, the lease price of the leased property is deemed to be the amount equal to the lease price of the leased property less that portion of the consideration for the leased property that is not paid before May 1, 2010 and becomes due on or after May 1, 2010.

Section 20.1 (1) to (3) is repealed and the following substituted:

(3) If a person has paid tax under subsection (1) in respect of a motor vehicle, the commissioner may pay from the consolidated revenue fund a refund of the difference between the tax paid at the time of registering the vehicle less the sum of all taxes that would have otherwise been payable under

section 20 or 21.

109 The following

section is added:

Transition — application of

section 20.2

20.3

(1) Tax is payable under

section 20.2 in respect of tangible personal property if

(

a) the tangible personal property is substantially supplied before July 1, 2010, or

(

b) paragraph (

a) of this subsection does not apply and the tangible personal property is supplied for a period that begins before July 1, 2010 and ends on or after July 1, 2010.

(2) Tax is not payable under

section 20.2 in respect of tangible personal property if the tangible personal property is supplied on or after July 1, 2010.

(3) If tax is payable under

section 20.2 by reason of subsection (1) (

b) of this section, for the purpose of calculating the tax payable under

section 20.2, the price at which the tangible personal property would have been leased had it been leased without supplying a person to operate it is deemed to be the portion of that price that is attributable to the portion of the period that is before July 1, 2010.

Section 21 (1) is amended

(

a) in paragraph (a) (ii) by adding " before July 1, 2010, " before " brings or sends ", and

(

b) in paragraph (

b) by striking out " a person who " and substituting " a person who, before July 1, 2010, ".

111 The following

section is added:

Transition — application of

section 21

21.01

(1) Tax is payable by a lessee under

section 21 (3) in respect of leased property

(

a) if, before May 1, 2010, the consideration for the leased property becomes due or is paid without having become due,

(

b) if the rental period under the lease begins before July 1, 2010 and ends before July 31, 2010,

(

c) if the rental period under the lease begins before July 1, 2010 and ends on or after July 31, 2010, or

(

d) if

(

i) before May 1, 2010, only a portion of the consideration for the leased property becomes due or is paid without having become due, and

(ii) the rental period under the lease begins on or after July 1, 2010.

(2) Tax is not payable by a lessee under

section 21 (3) in respect of leased property if

(

a) all of the consideration for the leased property becomes due on or after May 1, 2010,

(

b) none of the consideration for the leased property is paid before May 1, 2010, and

(

c) the rental period under the lease begins on or after July 1, 2010.

(3) If tax is payable under

section 21 (3) by reason only of subsection (1) (

c) of this section, for the purpose of calculating the tax payable under

section 21 (3), the lease price of the leased property is deemed to be the amount equal to the lease price of the leased property less that portion of the consideration for the leased property that

(

a) is not paid before May 1, 2010,

(

b) becomes due on or after May 1, 2010, and

(

c) is attributable to the portion of the rental period that is on or after July 1, 2010.

(4) If tax is payable under

section 21 (3) by reason of subsection (1) (

d) of this section, for the purpose of calculating the tax payable under

section 21 (3), the lease price of the leased property is deemed to be the amount equal to the lease price of the leased property less that portion of the consideration for the leased property that is not paid before May 1, 2010 and becomes due on or after May 1, 2010.

Section 21.1 is repealed.

113 The following

section is added:

Transition — application of

section 22

22.01

(1) Tax is payable by a lessee under

section 22 in respect of leased property

(

a) if, before May 1, 2010, the consideration for the leased property becomes due or is paid without having become due,

(

b) if the rental period under the lease begins before July 1, 2010 and ends before July 31, 2010,

(

c) if the rental period under the lease begins before July 1, 2010 and ends on or after July 31, 2010, or

(

d) if

(

i) before May 1, 2010, only a portion of the consideration for the leased property becomes due or is paid without having become due, and

(ii) the rental period under the lease begins on or after July 1, 2010.

(2) Tax is not payable by a lessee under

section 22 in respect of leased property if

(

a) all of the consideration for the leased property becomes due on or after May 1, 2010,

(

b) none of the consideration for the leased property is paid before May 1, 2010, and

(

c) the rental period under the lease begins on or after July 1, 2010.

(3) If tax is payable under

section 22 by reason only of subsection (1) (

c) of this section, for the purpose of calculating the tax payable under

section 22, the lease price of the leased property is deemed to be the amount equal to the lease price of the leased property less that portion of the consideration for the leased property that

(

a) is not paid before May 1, 2010,

(

b) becomes due on or after May 1, 2010, and

(

c) is attributable to the portion of the rental period that is on or after July 1, 2010.

(4) If tax is payable under

section 22 by reason of subsection (1) (

d) of this section, for the purpose of calculating the tax payable under

section 22, the lease price of the leased property is deemed to be the amount equal to the lease price of the leased property less that portion of the consideration for the leased property that is not paid before May 1, 2010 and becomes due on or after May 1, 2010.

Section 22.1 is repealed.

Section 24 (2) is amended by striking out " 23 days, or other prescribed period, " and substituting " 23 days ".

Section 25 (1) is amended by striking out " If " and substituting " If, before July 1, 2010, ".

Section 26 is repealed.

Section 28 is amended by repealing the

definitions of "acquisition date" , "acquisition year" , "market value" and "vehicle taxable value" .

119 Sections 29 (1) to (3), 30 and 31 are repealed.

Section 32 (1) is amended by adding " and before July 1, 2010 " after " that fleet ".

Section 33 is repealed.

Section 33.1 is amended

(

a) in subsection (1) by adding " and before July 1, 2010 " after " current vehicle licence year ",

(

b) in subsection (1) by adding " in respect of which tax is payable under

section 29 " after " another multijurisdictional vehicle ", and

(

c) in subsections (2) and (3) by striking out " or credit " wherever it appears.

Section 33.3 (2) is amended by adding " of this Act or

section 165 (2) of the Excise Tax Act (Canada) " after "

section 20 ".

124 The following

section is added:

Transition — application of sections 36 and 37

37.1

(1) In this section:

"contract amount" ,

(

a) in relation to

section 36, means the total of all amounts payable under the contract referred to in

section 36 (1) (

b) for or in relation to the resulting tangible personal property, and

(

b) in relation to

section 37, has the same meaning as in

section 37 (3);

"services" ,

(

a) in relation to

section 36, means the services described in

section 36 (1) (

b) that are provided under the contract referred to in that provision, and

(

b) in relation to

section 37, means the services described in

section 37 (1) (

b) that are provided under the contract referred to in

section 37 (1) (a) (

i) or (ii).

(2) Tax is payable under

section 36 or 37 in respect of services

(

a) if, before May 1, 2010, the consideration for the services becomes due or is paid without having become due,

(

b) if the services are substantially provided before July 1, 2010,

(

c) if the services are partially provided before July 1, 2010, or

(

d) if

(

i) before May 1, 2010, only a portion of the consideration for the services becomes due or is paid without having become due, and

(ii) the services are provided on or after July 1, 2010.

(3) Tax is not payable under

section 36 or 37 in respect of services if

(

a) all of the consideration for the services becomes due on or after May 1, 2010,

(

b) none of the consideration for the services is paid before May 1, 2010, and

(

c) the services are provided on or after July 1, 2010.

(4) If tax is payable under

section 36 or 37 by reason only of subsection (2) (

c) of this section, for the purpose of calculating the tax payable under

section 36 or 37, the contract amount is deemed to be the amount equal to the contract amount for the services less that portion of the consideration for the services that

(

a) is not paid before May 1, 2010,

(

b) becomes due on or after May 1, 2010, and

(

c) is attributable to the portion of the services provided on or after July 1, 2010.

(5) If tax is payable under

section 36 or 37 by reason of subsection (2) (

d) of this section, for the purpose of calculating the tax payable under

section 36 or 37, the contract amount is deemed to be the amount equal to the contract amount for the services less that portion of the consideration for the services that is not paid before May 1, 2010 and becomes due on or after May 1, 2010.

Section 38 (2) is repealed.

126 The following

section is added:

Transition — application of

section 40

40.1

(1) Tax is payable under

section 40 in respect of a taxable service

(

a) if, before May 1, 2010, the consideration for the taxable service becomes due or is paid without having become due,

(

b) if the taxable service is substantially provided before July 1, 2010,

(

c) if the taxable service is partially provided before July 1, 2010, or

(

d) if

(

i) before May 1, 2010, only a portion of the consideration for the taxable service becomes due or is paid without having become due, and

(ii) the taxable service is provided on or after July 1, 2010.

(2) Tax is not payable under

section 40 in respect of a taxable service if

(

a) all of the consideration for the taxable service becomes due on or after May 1, 2010,

(

b) none of the consideration for the taxable service is paid before May 1, 2010, and

(

c) the taxable service is provided on or after July 1, 2010.

(3) If tax is payable under

section 40 by reason only of subsection (1) (

c) of this section, for the purpose of calculating the tax payable under

section 40, the purchase price of the taxable service is deemed to be the amount equal to the purchase price of the taxable service less that portion of the consideration for the taxable service that

(

a) is not paid before May 1, 2010,

(

b) becomes due on or after May 1, 2010, and

(

c) is attributable to the portion of the taxable service provided on or after July 1, 2010.

(4) If tax is payable under

section 40 by reason of subsection (1) (

d) of this section, for the purpose of calculating the tax payable under

section 40, the purchase price of the taxable service is deemed to be the amount equal to the purchase price of the taxable service less that portion of the consideration for the taxable service that is not paid before May 1, 2010 and becomes due on or after May 1, 2010.

Section 41 (2) (

c) is amended by striking out " paragraph (c), " and substituting " subsection (1) (c), ".

128 The following

section is added:

Transition — application of

section 41

41.1

(1) Tax is payable under

section 41 in respect of a taxable service if, before July 1, 2010, the taxable service

(

a) is substantially provided, or

(

b) is partially provided but not substantially provided.

(2) Tax is not payable under 41 in respect of a taxable service if the taxable service is provided on or after July 1, 2010.

(3) If tax is payable under

section 41 by reason of subsection (1) (

b) of this section, for the purpose of calculating the tax payable under

section 41, the purchase price of the taxable service is deemed to be the amount equal to the purchase price of the taxable service less that portion of the purchase price of the taxable service that is attributable to the portion of the taxable service provided on or after July 1, 2010.

129 The following

section is added:

Transition — application of sections 46 and 47

47.1

(1) Tax is payable under

section 46 or 47 in respect of legal services

(

a) if, before May 1, 2010, the consideration for the legal services becomes due or is paid without having become due,

(

b) if the legal services are substantially provided before July 1, 2010,

(

c) if the legal services are partially provided before July 1, 2010, or

(

d) if

(

i) before May 1, 2010, only a portion of the consideration for the legal services becomes due or is paid without having become due, and

(ii) the legal services are provided on or after July 1, 2010.

(2) Tax is not payable under

section 46 or 47 in respect of legal services if

(

a) all of the consideration for the legal services becomes due on or after May 1, 2010,

(

b) none of the consideration for the legal services is paid before May 1, 2010, and

(

c) the legal services are provided on or after July 1, 2010.

(3) If tax is payable under

section 46 or 47 by reason only of subsection (1) (

c) of this section, for the purpose of calculating the tax payable under

section 46 or 47, the purchase price of the legal services is deemed to be the amount equal to the purchase price of the legal services less that portion of the consideration for the legal services that

(

a) is not paid before May 1, 2010,

(

b) becomes due on or after May 1, 2010, and

(

c) is attributable to the portion of the legal services provided on or after July 1, 2010.

(4) If tax is payable under

section 46 or 47 by reason of subsection (1) (

d) of this section, for the purpose of calculating the tax payable under

section 46 or 47, the purchase price of the legal services is deemed to be the amount equal to the purchase price of the legal services less that portion of the consideration for the legal services that is not paid before May 1, 2010 and becomes due on or after May 1, 2010.

130 The following

section is added:

Transition — application of sections 53 and 54

54.1

(1) Tax is payable under

section 53 or 54 in respect of a telecommunication service

(

a) if, before May 1, 2010, the consideration for the telecommunication service becomes due or is paid without having become due,

(

b) if the telecommunication service is substantially provided before July 1, 2010,

(

c) if the telecommunication service is partially provided before July 1, 2010, or

(

d) if

(

i) before May 1, 2010, only a portion of the consideration for the telecommunication service becomes due or is paid without having become due, and

(ii) the telecommunication service is provided on or after July 1, 2010.

(2) Tax is not payable under

section 53 or 54 in respect of a telecommunication service if

(

a) all of the consideration for the telecommunication service becomes due on or after May 1, 2010,

(

b) none of the consideration for the telecommunication service is paid before May 1, 2010, and

(

c) the telecommunication service is provided on or after July 1, 2010.

(3) If tax is payable under

section 53 or 54 by reason only of subsection (1) (

c) of this section, for the purpose of calculating the tax payable under

section 53 or 54, the purchase price of the telecommunication service is deemed to be the amount equal to the purchase price of the telecommunication service less that portion of the consideration for the telecommunication service that

(

a) is not paid before May 1, 2010,

(

b) becomes due on or after May 1, 2010, and

(

c) is attributable to the portion of the telecommunication service provided on or after July 1, 2010.

(4) If tax is payable under

section 53 or 54 by reason of subsection (1) (

d) of this section, for the purpose of calculating the tax payable under

section 53 or 54, the purchase price of the telecommunication service is deemed to be the amount equal to the purchase price of the telecommunication service less that portion of the consideration for the telecommunication service that is not paid before May 1, 2010 and becomes due on or after May 1, 2010.

131 Sections 66 to 68 are repealed.

Section 68.01 is amended

(

a) in subsection (2) by striking out " subsection (6) " and substituting " subsections (6) and (6.1) ",

(

b) in subsection (4) (

c) by striking out " or other prescribed period ", and

(

c) by adding the following subsections:

(6.1) Despite subsection (5) but subject to subsection (6.2), a levy on the purchase price of an energy product is not payable under subsection (3) if the energy product is purchased on or after July 1, 2010.

(6.2) For certainty, subsection (3) applies in relation to an energy product if

(

a) the energy product is delivered before July 1, 2010, and

(

b) the purchase price of the energy product is paid or payable on or after July 1, 2010.

133 Division 10 of

Part 2 is repealed.

134 The following sections are added:

Tax on tangible personal property to be used to

improve real property

68.21 (1) Subsection (3) applies to a contractor if,

(

a) for the purposes of fulfilling a contract for the supply and installation of improvements to real property, the contractor,

(

i) before, on or after the date this

section comes into force, acquires tangible personal property at a sale in British Columbia, or

(ii) before July 1, 2010, brings or sends into British Columbia, or receives delivery of in British Columbia, tangible personal property, and

(

b) on or before December 31, 2010, the tangible personal property is not used under the terms of the contract so that it ceases to be tangible personal property and becomes part of the real property.

(2) Despite subsection (1), subsection (3) does not apply to a contractor if, on or before December 31, 2010,

(

a) the contractor must pay tax in respect of that tangible personal property under

section 5, 9 or 11,

(

b) a person must pay tax in respect of that tangible personal property under

section 68.2 (3), or

(

c) the contractor sells the tangible personal property to another person.

(3) A contractor to whom this subsection applies must pay to the government, at the prescribed time and in the prescribed manner, a tax at the rate of 7% of the purchase price of the tangible personal property referred to in subsec