May 29, 2008

781755088/08040/tlc08040_f

E4tlc08040

Interpretation

Definitions

In this Act:

assessment includes reassessment;

biomethane means methane produced from biomass;

biomethane credit means a credit provided under

section 14.1;

board member means a member of a board of directors of a corporation and includes a person who is deemed to be a board member under

section 50;

buy includes to obtain ownership by barter or exchange;

collector means a person who is appointed as a collector under

section 16 (1);

combustible means an item or material set out in column 2 of the Table in

Schedule 2;

common carrier means a person who is in the business of transporting goods for members of the public;

deputy collector means a person who is deemed appointed as a deputy collector under

section 17;

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

farmer has the same meaning as in

section 1 of the Motor Fuel Tax Act ;

fuel means a substance set out in column 2 of the Table in

Schedule 1 but does not include

methanol produced from biomass, and

subject to

section 13.1, biomethane;

IFTA commercial vehicle has the prescribed meaning;

litre means,

with respect to fuel in liquid form, one cubic decimetre, or

with respect to fuel in the form of liquefied petroleum gas, 0.5 kg;

manufacture includes the production, refining or compounding of fuel;

month means a calendar month;

motive fuel user permit means a motive fuel user permit issued under the Motor Fuel Tax Act ;

motor vehicle means a vehicle that is designed to be self-propelled on land;

natural gas means natural gas as defined in

section 1 (1) of

Schedule 1;

purchaser means a person who, within British Columbia, buys or receives delivery of fuel

for the person's own use or for use by another person at the first person's expense, or

on behalf of or as an agent for a principal for use by the principal or by other persons at the expense of the principal;

refiner collector means a person who is appointed as a refiner collector under

section 16 (2.1);

registered air service means a person who holds a registered air service certificate;

registered air service certificate means a registered air service certificate issued under

section 21;

registered consumer means a person who holds a registered consumer certificate;

registered consumer certificate means a registered consumer certificate issued under

section 20;

registered marine service means a person who holds a registered marine service certificate;

registered marine service certificate means a registered marine service certificate issued under

section 21;

registration certificate means a registration certificate issued under

section 19;

retail dealer , subject to

section 1.1, means a person who, within British Columbia, sells fuel to a purchaser;

scheduled rate change means a modification in a rate of tax set out in the Table in

Schedule 1 that comes into effect

as of July 1 of a year before 2018, or

as of April 1 of a year after 2017;

security includes all penalties and interest that are or may be added to security under this Act;

sell includes to transfer ownership by barter or exchange;

ship includes any vessel that is designed to be self-propelled in or on water;

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

section 45, includes

an amount a person must pay to the government under

section 53 (2), and

an amount for which a person is personally liable to the government under

section 65 (4);

use includes flaring and incineration of natural gas or refinery gas, and a prescribed type of activity in circumstances, if any, that are prescribed;

vendor , subject to

section 1.1, means a person who, within British Columbia, sells fuel for the first time after

its manufacture in British Columbia, or

its importation into British Columbia;

wholesale dealer , subject to

section 1.1, means a person who, within British Columbia, buys fuel for resale to a person other than a purchaser.

[Repealed 2015-8-1.]

Fuel imported by ship

1.1

In this section:

imported fuel means fuel, other than natural gas, that, as part or all of a single shipment, has entered British Columbia from outside of Canada in compliance with the Customs Act (Canada) and the regulations under that Act;

release has the same meaning as in the Customs Act (Canada);

shipment means fuel that is cargo

in a single ship on a single trip,

on a single barge towed or pushed by one or more ships on a single trip, or

on 2 or more physically connected barges towed or pushed by one or more ships on a single trip, if all the fuel on the barges is owned by the same person.

Subject to subsections (3) and (4) and the regulations, all of the following apply to a sale of imported fuel that occurs either before the imported fuel is released or after the imported fuel is released but before or at the time the imported fuel is removed from the ship or barge on which it entered British Columbia:

the seller is not a retail dealer, even if the imported fuel is sold to a purchaser;

the seller is not a vendor;

the buyer is not a wholesale dealer, even if the buyer buys the imported fuel for resale to a person other than a purchaser.

Subsection (2) (

a) to (

c) does not apply to a sale of imported fuel

from a single shipment if

the imported fuel is a prescribed type of fuel or a prescribed subcategory of a type of fuel or is in a prescribed class of fuel, and

the amount of the imported fuel sold in that sale from that shipment is less than the amount prescribed for that prescribed type of fuel, prescribed subcategory of a type of fuel or prescribed class of fuel, or

in prescribed circumstances.

imported fuel is sold either before the imported fuel is released or after the imported fuel is released but before or at the time the imported fuel is removed from the ship or barge on which it entered British Columbia, and

subsection (2) (

a) to (

c) does not, under subsection (3) or the regulations, apply to the sale,

subsection (2) does not apply to any subsequent sale of that fuel.

A person who, within British Columbia, sells imported fuel for the first time in a sale to which subsection (2) (

a) to (

c) does not apply is the vendor of that fuel.

Liability of other persons

1.2

If more than one person is subject to tax under the same provision of this Act in respect of the same fuel, each person is jointly and severally liable for the tax.

If more than one person is required under the same provision of this Act to pay security to the government in respect of the same fuel, each person is jointly and severally liable to pay the security.

Repealed

2-7

[Repealed 2017-12-10.]

Imposition of Tax and Setting the Rate of Tax

Imposition of tax on purchase of fuel

Subject to this

section and the regulations, a purchaser of a fuel must pay to the government, at the time of purchase, tax on the fuel at the rate for that type of fuel set out in the column of the Table in

Schedule 1 that applies for the period of time in which the fuel is purchased.

If a scheduled rate change for a fuel takes effect between the time a purchaser buys the fuel and the time the purchaser receives delivery of the fuel, the purchaser must pay to the government tax on the fuel at the rate for that type of fuel set out in the column of the Table in

Schedule 1 that applies for the period of time in which the purchaser receives delivery.

[Repealed 2012-8-10.]

This

section does not apply to a purchaser who is a registered consumer with respect to the type or subcategory of a type of fuel specified on that person's registered consumer certificate.

A registered air service or registered marine service who purchases the type or subcategory of a type of fuel specified on that person's registered air or marine service certificate must pay the tax under subsection (1) at the prescribed time and in the prescribed manner.

A purchaser of a fuel in a sale to which

section 1.1 (2) (

a) to (

c) applies must pay the tax under subsection (1) of this

section at the prescribed time and in the prescribed manner.

Imposition of tax on fuel used for new purpose

8.1

If a purchaser

purchased fuel that was exempt from tax imposed under

section 8 because the fuel was to be used for a particular purpose, and

subsequently uses that fuel, or allows that fuel to be used, for a purpose other than

the particular purpose, or

another purpose for which that fuel would be exempt from tax imposed under

section 8 if that fuel were to be used for that purpose,

the purchaser must pay to the government tax on that fuel at the rate for that type of fuel set out in the column of the Table in

Schedule 1 that applies for the period of time in which that fuel is used.

Tax payable under subsection (1) must be paid at the prescribed time and in the prescribed manner.

Imposition of tax on fuel if ineligible for partial exemption

8.2

If a purchaser purchased fuel that was partially exempt from tax imposed under

section 8 and the fuel is subsequently used

in circumstances other than the circumstances in which the partial exemption applies, or

in contravention of the conditions or limitations of the partial exemption,

the purchaser must pay to the government tax on that fuel at the rate calculated in accordance with subsection (2).

For the purposes of subsection (1), the rate of tax on the fuel is the difference between

the rate of tax for that type of fuel set out in the column of the Table in

Schedule 1 that applies for the period of time in which that fuel is used, and

the rate of tax for that type of fuel that applied when the purchaser paid tax under the partial exemption.

Tax payable under subsection (1) must be paid at the prescribed time and in the prescribed manner.

Imposition of tax on transfer of fuel

Subject to this section, a person who is not a purchaser of a fuel but who, within British Columbia, transfers the fuel into the receptacle that supplies the turbine or other engine of

a ship,

any rolling stock or other vehicle run on rails, or

an aircraft

must pay to the government, at the prescribed time and in the prescribed manner, tax on the fuel at the rate for that type of fuel set out in the column of the Table in

Schedule 1 that applies for the period of time in which the fuel is transferred.

Subsection (1) applies to a person only if the person transfers the fuel

for the person's own use or for use by another person at the first person's expense, or

on behalf of or as an agent for a principal for use by the principal or by another person at the expense of the principal.

Subsection (1) does not apply to a person who is a registered consumer with respect to the type or subcategory of a type of fuel specified on that person's registered consumer certificate.

A registered air service or registered marine service who transfers the type or subcategory of a type of fuel specified on that person's registered air or marine service certificate must pay the tax under subsection (1) at the prescribed time and in the prescribed manner.

Imposition of tax on fuel brought into British Columbia

Subject to this section, a person who

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, and

brings or sends into British Columbia fuel in the supply tank or a supplemental supply tank of a motor vehicle, aircraft or ship

must pay to the government, at the prescribed time and in the prescribed manner, tax on the fuel at the rate for that type of fuel set out in the column of the Table in

Schedule 1 that applies for the period of time in which the fuel is brought into British Columbia.

Subsection (1) applies to a person only if the person brings or sends into British Columbia the fuel

for the person's own use or for use by another person at the first person's expense, or

on behalf of or as an agent for a principal for use by the principal or by another person at the expense of the principal.

For the purposes of subsection (1), a person is deemed to be carrying on business in British Columbia if

the person's name, or any name under which the person carries on business, is listed in a telephone directory

for any part of British Columbia, and

in which an address or telephone number in British Columbia is given for the person,

the person's name, or any name under which the person carries on business, appears or is announced in any advertisement in which an address or telephone number in British Columbia is given for the person,

the person has, in British Columbia,

employees or other representatives, or

a warehouse, office or place of business, or

the person routinely loads or unloads passengers, cargo or both in British Columbia.

Subsection (1) does not apply to a person who is a registered consumer with respect to the type or subcategory of a type of fuel specified on that person's registered consumer certificate.

In the case of an IFTA commercial vehicle to which this Act applies, this

section does not apply to fuel in the supply tank or a supplemental supply tank of the IFTA commercial vehicle if a deposit has been paid in accordance with the regulations in respect of tax payable on that fuel under this Act.

A registered air service or registered marine service who brings or sends into British Columbia the type or subcategory of a type of fuel specified on that person's registered air or marine service certificate must pay the tax under subsection (1) at the prescribed time and in the prescribed manner.

Imposition of tax on use of fuel

A person who, within British Columbia, uses a fuel on which tax is not otherwise payable under sections 8, 9 and 10 must pay to the government, at the prescribed time and in the prescribed manner, tax on the fuel at the rate for that type of fuel set out in the column of the Table in

Schedule 1 that applies for the period of time in which the fuel is used.

Imposition of tax on combustible

A person who, within British Columbia, burns a combustible to produce energy or heat must pay to the government, at the prescribed time and in the prescribed manner, tax on the combustible at the rate for that type of combustible set out in the column of the Table in

Schedule 2 that applies for the period of time in which the combustible is burned.

Calculation of tax for blends or mixtures

If a mixture or blend is composed of one or both of the following combinations:

one or more fuels, with or without one or more non-taxable substances or items;

one or more combustibles, with or without one or more non-taxable substances or items,

the amount of tax payable for a fuel or combustible in the mixture or blend is to be determined by multiplying the rate of tax determined under the applicable provision of this Act by the amount of that fuel or combustible in the mixture or blend.

Subsection (1) does not apply to a prescribed fuel, combustible, substance or item or in prescribed circumstances.

Subject to subsection (4), if a mixture or blend includes a prescribed fuel, combustible, substance or item referred to in subsection (2), the amount of tax payable on the mixture or blend is the amount determined in accordance with the regulations.

If a substance or item is not taxable under this Act, the regulations may deem the substance or item to be taxable at a prescribed rate if the substance or item is included in a mixture or blend but comprises less than the prescribed percentage of the mixture or blend.

Calculation of tax for certain biomethane blends or mixtures

13.1

If a mixture or blend contains a combined amount of a fuel and biomethane and the proportions of the fuel and biomethane in the combined amount cannot be determined,

for the purpose of applying this Act and the regulations under this Act, the biomethane is deemed to be fuel of the same type or subcategory of a type of fuel as the fuel, and

the total amount of tax payable for the fuel and the biomethane is to be determined by multiplying the rate of tax for the fuel under this Act by the combined amount of the fuel and the biomethane.

If a mixture or blend contains a combined amount of natural gas, another fuel and biomethane, and the proportions of natural gas, the other fuel and biomethane in the combined amount cannot be determined,

for the purpose of applying this Act and the regulations under this Act, the other fuel and the biomethane are deemed to be natural gas, and

the total amount of tax payable for the natural gas, the other fuel and the biomethane is to be determined by multiplying the rate of tax for natural gas under this Act by the combined amount of the natural gas, the other fuel and the biomethane.

Exemptions and Credits

Exemptions

Exemptions from tax

In this section, non-commercial aircraft or ship means an aircraft or ship used solely for personal use.

In addition to exemptions established by regulation, the following are exempt from tax under this Act:

fuel that is brought into British Columbia in the supply tank or a supplemental supply tank of a non-commercial aircraft or ship, if the fuel in the supply tank or supplemental supply tank is to be used in the operation of the aircraft or ship;

up to and including 182 litres of fuel that is brought into British Columbia in the supply tank or a supplemental supply tank of a motor vehicle, other than an IFTA commercial vehicle or a locomotive, if the fuel in the supply tank or supplemental supply tank is to be used in the operation of the motor vehicle;

fuel that is purchased in British Columbia for use outside of British Columbia and is to be removed from British Columbia by the following persons:

section 1.1 (2) (

a) to (

c) does not apply to the sale,

the retail dealer who sold the fuel, or

a person acting on behalf of the retail dealer who sold the fuel;

section 1.1 (2) (

a) to (

c) applies to the sale,

the seller who sold the fuel, or

a person acting on behalf of the seller who sold the fuel;

iii

if the purchaser of the fuel or a person acting on behalf of the purchaser has at the time of the purchase entered into a contract with a common carrier for the removal of the fuel from British Columbia,

the purchaser, or

the person acting on behalf of the purchaser;

fuel that is purchased in British Columbia for use outside of British Columbia and is to be removed from British Columbia in prescribed circumstances;

fuel for use in the operation of an IFTA commercial vehicle by a licensed carrier, as defined in the Motor Fuel Tax Act ;

fuel that is used by a registered consumer for interjurisdictional air or marine travel or transport in the prescribed circumstances and in accordance with the prescribed rules;

subject to the regulations, fuel that is purchased by a farmer for use for a prescribed purpose and that

is a prescribed type of fuel,

is a prescribed subcategory of a type of fuel, or

iii

is in a prescribed class of a type of fuel or of a subcategory of a type of fuel.

Biomethane Credit

Biomethane credit

14.1

Subject to the regulations, a retail dealer of natural gas, on behalf of the government, must provide a credit to a purchaser at the prescribed time and in an amount determined in the prescribed manner.

Refund to retail dealer of natural gas

14.2

If the director is satisfied that

a retail dealer of natural gas has provided a biomethane credit to a purchaser in respect of a sale,

the retail dealer has remitted to the government the amount of tax payable in respect of the sale, without deduction for the biomethane credit, and

the purchaser was entitled to receive the biomethane credit,

the director, subject to the regulations, must pay from the consolidated revenue fund to the retail dealer a refund of a portion of the tax remitted by the retail dealer in respect of the sale in an amount determined in the prescribed manner.

Recovery of amount by retail dealer of natural gas

14.3

If a retail dealer of natural gas

provides a credit to a person in respect of a sale as if it were a biomethane credit, and

does not receive a refund under

section 14.2 because the person was not entitled to receive a biomethane credit in respect of the sale,

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

Collection of Tax and Security

Appointments and Certificates

Repealed

[Repealed 2025-5-1.]

Appointment of vendor as collector

Subject to subsection (2), and on receipt of an application in a form and manner specified by the director, the director may, if the director considers that the applicant is suitable,

appoint a vendor to be a collector for a type or subcategory of a type of fuel, and

make the appointment subject to any other conditions and limitations specified by the director.

Before an applicant is appointed as a collector, the applicant must enter into an agreement with the director, on behalf of the government, setting out the duties to be performed by the applicant when acting as a collector and any other matters the director considers necessary or advisable.

2.1

On receipt of an application in a form and manner specified by the director, the director may

appoint a collector to be a refiner collector with respect to the same type or subcategory of a type of fuel as the collector is appointed under subsection (1) (a), if

the director considers the applicant suitable, and

the collector or one or more interrelated entities of the collector, individually or collectively, own and operate a crude oil refinery in Canada, and

make the refiner collector appointment subject to any conditions and limitations specified by the director.

2.11

Before the director makes an appointment under subsection (1) or (2.1), the director may require the applicant to deposit a bond under

section 59 by the date specified by the director.

2.12

The director may refuse to make an appointment under subsection (1) or (2.1) if the applicant has failed to deposit a bond required under

section 59 by the date specified by the director under subsection (2.11) of this section.

2.2

In this section, interrelated entity , in relation to a collector, means a corporation, partnership, trust, joint venture or other incorporated or unincorporated entity that the director considers to be interrelated with the collector for the purpose of this section.

2.3

Subject to subsection (2.4), the director may make an appointment under subsection (1) or (2.1) effective on an earlier date that is on or after the first day of the month in which the vendor's first sale of a type or subcategory of a type of fuel in British Columbia after its manufacture in British Columbia or its importation into British Columbia, and if the appointment is made effective on an earlier date the vendor is deemed to have been appointed a collector or refiner collector on the specified date.

2.4

An appointment may not be made effective on a date that is earlier than 4 years before the director makes the appointment under subsection (1) or (2.1).

3) to (6

[Repealed 2008-40-156.]

Appointment of deputy collector

If a wholesale dealer buys fuel

from a collector, the wholesale dealer is deemed, with respect to that fuel, to have been appointed a deputy collector by the collector, or

from a deputy collector, the wholesale dealer is deemed, with respect to that fuel, to have been appointed a deputy collector by the deputy collector

from whom the wholesale dealer bought that fuel.

Subsection (1) does not apply to a wholesale dealer who is appointed a collector and who buys fuel from another collector in a sale described in

section 30 (3).

A person who is a deputy collector must comply with the obligations of a deputy collector imposed by this Act even if the person is also a collector or a registered consumer with respect to other fuel.

If a wholesale dealer buys fuel from a vendor whose appointment as a collector for the fuel is effective in accordance with

section 16 (2.3), the appointment of the wholesale dealer as a deputy collector under subsection (1) (

a) of this

section is deemed to have been made at the time the wholesale dealer bought that fuel.

If a wholesale dealer buys fuel from a deputy collector whose appointment as a deputy collector under subsection (1) (

a) is effective in accordance with subsection (4), the appointment of the wholesale dealer as a deputy collector under subsection (1) (

b) is deemed to have been made at the time the wholesale dealer bought the fuel.

Repealed

[Repealed 2025-5-1.]

Issue of registration certificate to retail dealer

On receipt of an application in a form and manner specified by the director, the director may, if the director considers that the applicant is suitable,

issue a registration certificate to a retail dealer authorizing the retail dealer to sell natural gas, and

make the registration certificate subject to any other conditions and limitations specified by the director.

The director may require that before a registration certificate is issued under subsection (1), the applicant enter into an agreement with the director, on behalf of the government, setting out the duties to be performed by the applicant when acting as a retail dealer of natural gas and any other matters the director considers necessary or advisable.

3) to (6

[Repealed 2008-40-156.]

Before the director issues a registration certificate under subsection (1), the director may require the applicant to deposit a bond under

section 59 by the date specified by the director.

The director may refuse to issue a registration certificate under subsection (1) if the applicant has failed to deposit a bond required under

section 59 by the date specified by the director under subsection (7) of this section.

Issue of registered consumer certificate

Subject to subsection (2) and on receipt of an application in a form and manner specified by the director, the director may

issue a registered consumer certificate for a type or subcategory of a type of fuel specified by the director, to an applicant who

the director considers suitable,

is included in a prescribed category of persons, and

iii

meets the prescribed conditions and requirements, if any, and

make the registered consumer certificate subject to any other conditions and limitations specified by the director.

Before an applicant is issued a registered consumer certificate, the applicant must enter into an agreement with the director, on behalf of the government, setting out the duties to be performed by the applicant when acting as a registered consumer and any other matters the director considers necessary or advisable.

3) to (6

[Repealed 2008-40-156.]

Before the director issues a registered consumer certificate under subsection (1), the director may require the applicant to deposit a bond under

section 59 by the date specified by the director.

The director may refuse to issue a registered consumer certificate under subsection (1) if the applicant has failed to deposit a bond required under

section 59 by the date specified by the director under subsection (7) of this section.

Issue of registered air or marine service certificate

Subject to subsection (2) and on receipt of an application in a form and manner specified by the director, the director may

issue a registered air service certificate or registered marine service certificate, for a type or subcategory of a type of fuel specified by the director, to an applicant who

the director considers is suitable,

is included in a prescribed category of persons, and

iii

meets the prescribed conditions and requirements, if any, and

make the registered air service or marine service certificate subject to any other conditions and limitations specified by the director.

Before an applicant is issued a registered air service certificate or registered marine service certificate, the applicant must enter into an agreement with the director, on behalf of the government, setting out the duties to be performed by the applicant when acting as a registered air service or a registered marine service and any other matters the director considers necessary or advisable.

Before the director issues a registered air service certificate or registered marine service certificate under subsection (1), the director may require the applicant to deposit a bond under

section 59 by the date specified by the director.

The director may refuse to issue a registered air service certificate or registered marine service certificate under subsection (1) if the applicant has failed to deposit a bond required under

section 59 by the date specified by the director under subsection (3) of this section.

Limitation respecting type of fuel

The director may limit the application of a collector's appointment, a registered consumer certificate or a registered air service or marine service certificate to a subcategory of a type of fuel, if the subcategory is prescribed under this Act.

Suspension or cancellation of appointment and certificates

In this section:

appointment means an appointment as a collector or as a refiner collector;

certificate means a registration certificate, registered consumer certificate, registered air service certificate or registered marine service certificate;

person means a collector, refiner collector, registered consumer, registered air service, registered marine service and a person who holds a registration certificate.

The director may, without advance notice to a person, suspend the person's appointment or certificate for a period of up to 60 days

if the director is satisfied that the person knowingly gave false information on an application for the appointment or certificate,

if the person refuses or neglects to comply with

a provision of this Act or the regulations,

a condition or limitation specified by the director on the appointment or certificate held by the person,

iii

a provision of the agreement referred to in

section 16 (2), 19 (2), 20 (2) or 21 (2), or

a requirement of the director to deposit a bond under

section 59,

b.1

with respect to an appointment as a refiner collector, if the director is satisfied that the condition referred to in

section 16 (2.1) (a) (ii) is not being met, or

if authorized by the regulations.

If the director suspends an appointment or certificate of a person under subsection (2), the director must, as soon as reasonably possible,

advise the person of the reasons for the suspension, and

provide the person with an opportunity to show the director why the suspension should be lifted.

Subject to subsection (5), the director may, by notice given to a person, cancel the person's appointment or certificate

if the director is satisfied that the person knowingly gave false information on an application for the appointment or certificate,

if the person refuses or neglects to comply with

a provision of this Act or the regulations,

a condition or limitation specified by the director on the appointment or certificate held by the person,

iii

a provision of the agreement referred to in

section 16 (2), 19 (2), 20 (2), or 21 (2), or

a requirement of the director to deposit a bond under

section 59,

b.1

with respect to an appointment as a refiner collector, if the director is satisfied that the condition referred to in

section 16 (2.1) (a) (ii) is not being met, or

if authorized by the regulations.

Before cancelling an appointment or a certificate under subsection (4), the director must

give the person notice of the reasons for the proposed cancellation, and

provide the person with an opportunity to show the director why the appointment or certificate should not be cancelled.

Cancellation of an appointment or certificate under subsection (4) takes effect on the later of

the date that notice of it is given to the person, and

the date stated in the notice.

If required by the regulations, the director must cancel a person's appointment or certificate in accordance with the regulations.

If the director cancels a person's appointment or certificate under subsection (7) the director

is not required to give advance notice of the cancellation to the person, and

must give written reasons to the person.

A suspension or cancellation of an appointment or certificate of a person under this

section or

section 24 does not relieve the person from any liability.

Automatic suspension and cancellation

If the appointment of a person as a collector under the Motor Fuel Tax Act is suspended under that Act, the appointment of that person as collector under this Act is automatically suspended without notice for the same period as the suspension under the Motor Fuel Tax Act , if both appointments are in relation to the same substance.

1.1

If the appointment of a person as a collector under this Act or the Motor Fuel Tax Act is suspended under either Act, the appointment of that person as refiner collector under this Act is automatically suspended without notice for the same period as the suspension under this Act or the Motor Fuel Tax Act .

If the appointment of a person as a collector under the Motor Fuel Tax Act is cancelled under that Act, the appointment of that person as collector under this Act is automatically cancelled without notice if both appointments are in relation to the same substance.

2.1

If the appointment of a person as a collector under this Act or the Motor Fuel Tax Act is cancelled under either Act, the appointment of that person as refiner collector under this Act is automatically cancelled without notice.

2.2

If a person's registration under

section 168 of the Provincial Sales Tax Act is suspended under that Act, the registration certificate issued to that person under this Act is automatically suspended without notice for the same period as the suspension under the Provincial Sales Tax Act .

2.3

If a person's registration under

section 168 of the Provincial Sales Tax Act is cancelled under that Act, the registration certificate issued to that person under this Act is automatically cancelled without notice.

3) and (4

[Repealed 2010-5-172.]

If a registered consumer certificate issued to a person under the Motor Fuel Tax Act is suspended under that Act, the registered consumer certificate issued to that person under this Act is automatically suspended without notice for the same period as the suspension under the Motor Fuel Tax Act , if both certificates are in relation to the same substance.

If a registered consumer certificate issued to a person under the Motor Fuel Tax Act is cancelled under that Act, the registered consumer certificate issued to that person under this Act is automatically cancelled without notice, if both certificates are in relation to the same substance.

Duties of Retail Dealers, Deputy Collectors and Collectors

Collection of tax on sale of fuel to a purchaser

Subject to subsection (3) and the regulations, a retail dealer must collect the tax imposed by this Act at the time of selling fuel to a purchaser.

A person who is a retail dealer must comply with the obligations of a retail dealer even if the person is also a collector or a registered consumer with respect to other fuel.

If a retail dealer sells to a purchaser who is a registered consumer, registered air service or registered marine service fuel that is the type or subcategory of a type of fuel specified on the purchaser's certificate, the retail dealer is not required to collect tax from the purchaser.

Duties of retail dealers, deputy collectors and collectors

Subject to sections 30, 31 and 32 and the regulations, a collector or deputy collector who sells fuel to a deputy collector or retail dealer must collect the tax from the deputy collector or retail dealer who bought the fuel.

Subject to

section 31 and the regulations, a deputy collector who buys fuel from a collector or other deputy collector must, on demand of the collector or the other deputy collector, remit the tax on the fuel collected from a retail dealer or another deputy collector to the person who made the demand.

Subject to

section 32 and the regulations, a retail dealer who buys fuel from a collector or deputy collector must, on demand of the collector or deputy collector, remit the tax on the fuel collected from a purchaser to the person who made the demand.

A retail dealer or deputy collector who does not remit the tax collected in accordance with subsection (2) or (3) must remit the tax collected to the director at the prescribed time and in the prescribed manner.

Despite

section 38 and the regulations, any money received by a collector, deputy collector or retail dealer in respect of a sale of fuel, up to the full amount of the taxes owing, is deemed to be payment of the taxes owing by the purchaser under this Act.

Relief of obligations to extent tax remitted

26.1

If a vendor's appointment as a collector for a fuel is effective in accordance with

section 16 (2.3) and the collector sold, within British Columbia, the fuel within the period beginning on the date the appointment was effective in accordance with

section 16 (2.3) and ending on the date the appointment was made by the director, the following apply in respect of that fuel:

the collector or a deputy collector is relieved of any obligation under

section 26 (1) to collect tax on the fuel to the extent that the tax on that fuel has been remitted to the government;

a deputy collector is relieved of any obligation under

section 26 (2) to remit tax on the fuel to the extent that the tax on that fuel has been remitted to the government;

a retail dealer is relieved of any obligation under

section 26 (3) to remit the tax on the fuel to the extent that the tax on that fuel has been remitted to the government;

a retail dealer or deputy collector is relieved of any obligation under

section 26 (4) to remit the tax collected on the fuel to the extent that the tax on that fuel has been remitted to the government;

the collector is relieved of any obligation under

section 30 (1) to pay security with respect to that fuel to the extent that the tax on that fuel has been remitted to the government;

a deputy collector is relieved of any obligation under

section 31 (1) to pay security with respect to that fuel to the extent that the tax on that fuel has been remitted to the government;

a retail dealer is relieved of any obligation under

section 32 (1) to pay security with respect to that fuel to the extent that the tax on that fuel has been remitted to the government.

Agent of the government

A person who sells fuel is deemed to be an agent of the government and as agent must levy and collect tax as required by this Act.

Collected Taxes

Remittance to government

A retail dealer of natural gas must remit the tax collected to the government at the prescribed time and in the prescribed manner.

Subject to

section 30, a collector must remit to the government all taxes collected by the collector under this Act at the prescribed time and in the prescribed manner.

If a person collects an amount as if it were a tax imposed under this Act, the person must remit the amount collected to the government at the prescribed time and in the prescribed manner.

3.1

Despite subsection (3), a retail dealer of natural gas is not required to remit to the government an amount collected from a person as if it were tax under this Act in respect of natural gas delivered on or after April 1, 2025 if the retail dealer, in accordance with

section 36 (1.1), refunds or credits that amount to the person.

A person, other than a collector or deputy collector, who sells fuel to a retail dealer and receives money in respect of the tax payable on the fuel must remit that money to the government at the prescribed time and in the prescribed manner.

a person, in respect of fuel, receives an amount as security under this Act or receives an amount as if it were security under this Act, or receives both, and

the total amount received exceeds the amount of security the person paid on the fuel,

the person must remit to the government, at the prescribed time and in the prescribed manner, the difference between the total amount received for the fuel and the amount of security paid on the fuel.

An amount that is remitted by a collector or deputy collector under subsection (5) may, unless the amount is refunded under this Act, be retained by the government in satisfaction of the collector's or deputy collector's obligation to collect and remit the tax imposed by this Act on a purchaser of the fuel.

Tax collected deemed to be held in trust

If a person collects an amount of tax under this Act or collects an amount as if it were tax under this Act,

the person is deemed to hold the amount in trust for the government until the amount is remitted to the government in the manner and at the time required under this Act, and

the amount collected is deemed to be held separate from and does not form a part of the person's money, assets or estate, whether or not the amount collected has in fact been kept separate and apart from either the person's own money or the assets of the estate of the person who collected the amount.

Security

Security from collector

Subject to subsections (1.1), (3) and (4), a collector who, within British Columbia, sells a fuel for the first time after the fuel is manufactured in British Columbia or imported into British Columbia must pay, with respect to that fuel, security to the government in an amount equal to the tax that would be collectable if the fuel were sold, at that time, to a purchaser who is liable to pay tax on the purchase.

1.1

Subject to subsections (3) and (4), a collector who, within British Columbia, sells fuel for the first time in a sale referred to in

section 1.1 (5) is deemed to be making the first sale of the fuel for the purposes of subsection (1) of this section.

The security referred to in subsection (1) must be paid to the government at the prescribed time and in the prescribed manner.

For the purposes of subsections (1) and (1.1), a sale of fuel within British Columbia for the first time does not include a sale of a type or subcategory of a type of fuel by one refiner collector to another refiner collector, if both are appointed refiner collectors for the same type or subcategory of a type of fuel.

A collector who sells fuel that the collector bought in the circumstances described in subsection (3) is deemed to be making the first sale of fuel for the purposes of subsection (1) or (1.1), as applicable, if the collector sells the fuel in circumstances other than those described in subsection (3).

A collector who, as a retail dealer, sells

fuel that is exempt from tax under

section 14 (2) (c), (d), (

e) or (g),

fuel to a purchaser who is not liable to pay tax on that purchase, or

to a person who is a registered air service or registered marine service, fuel that is the type or subcategory of the type specified on that person's registered air service certificate or registered marine service certificate

is exempt from the requirement to pay security under subsection (1) in respect of that fuel.

5.1

A collector is exempt from the requirement to pay security under subsection (1) in respect of fuel if the collector sells the fuel to a deputy collector or retail dealer who is exempt from the requirement to pay security under

section 31 (1) or 32 (1) in respect of that fuel.

On application by a collector, the director may, in writing and on conditions the director considers appropriate, exempt the collector from the requirements of subsection (1) in respect of a fuel if the collector satisfies the director that the fuel

is to be sold to a purchaser who is not liable to pay tax on that purchase,

is not to be sold to a purchaser, or

is to be sold to a person who is a registered air service or registered marine service and the fuel is the type or subcategory of a type of fuel specified on the certificate held by that person.

An amount that is paid by a collector as security under subsection (1) may, unless the amount is refunded under this Act, be retained by the government in satisfaction of the collector's obligation to collect and remit the tax imposed by this Act on a purchaser of fuel.

Security from deputy collector

A deputy collector who buys fuel from a collector or another deputy collector must pay, as security to the collector or the other deputy collector, an amount equal to the tax that would be collectable if that fuel were sold, at that time, to a purchaser who is liable to pay tax on the purchase.

1.1

A deputy collector who buys fuel that is to be sold by the deputy collector outside of British Columbia is exempt from the requirement to pay security under subsection (1) in respect of the fuel if that fuel is to be removed from British Columbia

by the collector or other deputy collector from whom the deputy collector bought the fuel,

by a person acting on behalf of the collector or other deputy collector from whom the deputy collector bought the fuel,

by the deputy collector or a person acting on behalf of the deputy collector, if the deputy collector or the person acting on behalf of the deputy collector has, at the time the deputy collector buys the fuel, entered into a contract with a common carrier for the removal of the fuel from British Columbia, or

in prescribed circumstances.

On application by a deputy collector, the director may, in writing and on conditions the director considers appropriate, exempt the deputy collector from the requirements of subsection (1) in respect of a fuel if the deputy collector satisfies the director that the fuel

is to be sold to a purchaser who is not liable to pay tax on that purchase,

is not to be sold to a purchaser, or

is to be sold to a person who is a registered air service or registered marine service and the fuel is the type or subcategory of a type of fuel specified on the certificate held by that person.

A collector or deputy collector who, in respect of fuel, has paid an amount as security under

section 30 (1) or subsection (1) of this

section may retain any amount received under subsection (1) of this

section instead of collecting the tax imposed on the purchaser in respect of that fuel.

If, under subsection (1), a deputy collector pays an amount as security in respect of fuel and that amount is retained under subsection (3), the deputy collector is, subject to

section 35, deemed to have satisfied the deputy collector's obligation to remit the tax that is imposed by this Act on the purchaser of the fuel.

Security from retail dealer

If a retail dealer buys fuel from a collector or deputy collector, the retail dealer must pay, as security to the collector or deputy collector, an amount equal to the tax that would be collectable if that fuel were sold, at that time, to a purchaser who is liable to pay tax on the purchase.

1.1

A retail dealer who buys a type or subcategory of a type of fuel from a collector or deputy collector is exempt from the requirement to pay security under subsection (1) in respect of the fuel if the retail dealer and the collector or deputy collector are appointed refiner collectors for that type or subcategory of a type of fuel.

On application by a retail dealer, the director may, in writing and on conditions the director considers appropriate, exempt the retail dealer from the requirements of subsection (1) in respect of a fuel if the retail dealer satisfies the director that the fuel

is to be sold to a purchaser who is not liable to pay tax on that purchase,

is not to be sold to a purchaser, or

is to be sold to a person who is a registered air service or registered marine service and the fuel is the type or subcategory of a type of fuel specified on the certificate held by that person.

A collector or deputy collector who, in respect of fuel, has paid an amount as security under

section 30 (1) or 31 (1) may retain any amount received under subsection (1) of this

section instead of collecting the tax imposed on the purchaser in respect of that fuel.

If, under subsection (1), a retail dealer pays an amount as security in respect of fuel and that amount is retained under subsection (3), the retail dealer is, subject to

section 35, deemed to have satisfied the retail dealer's obligation to remit the tax that is imposed by this Act on the purchaser of the fuel.

Exemption from security

A person who buys natural gas for resale must not pay security on that natural gas.

A person who sells natural gas must not collect security on that natural gas.

Change in the Rate of Tax

Change in tax rate and collection of tax

If a scheduled rate change for a fuel takes effect between the time a retail dealer sells the fuel to a purchaser and the time the purchaser receives delivery of the fuel, the retail dealer must collect tax on that fuel at the rate that applies at the time the purchaser receives delivery of the fuel.

[Repealed 2012-8-10.]

Change in tax rate and payment of security

If a deputy collector or retail dealer who owns fuel at the time the rate of tax for the fuel changes was required to pay security on the fuel before the tax rate changed, the deputy collector or retail dealer must provide the director with an inventory of that fuel, in accordance with the instructions of the director.

For the purposes of subsection (1), if there is a scheduled rate change for a fuel between the time a retail dealer enters into an agreement to sell that fuel to a purchaser and the time the purchaser receives delivery of the fuel, the retail dealer is deemed to own the fuel on the date of the scheduled rate change.

[Repealed 2012-8-10.]

For the purposes of subsection (1), a deputy collector or retail dealer, as the case may be, is deemed to own a fuel on the date the tax rate for the fuel changes, if

the deputy collector or retail dealer has entered into an agreement to buy the fuel and the agreement provides that the deputy collector or retail dealer owns the fuel on the date the tax rate changes,

the deputy collector or the retail dealer has not received delivery of the fuel before the date the tax rate changes, and

the deputy collector or the retail dealer has not entered into an agreement with another person that provides that the other person owns the fuel on the date of the tax rate change.

Subject to the regulations, the director may pay a deputy collector or retail dealer who provided an inventory under subsection (1) an allowance in an amount determined under the regulations.

Subject to the regulations, if the rate of tax increases, a deputy collector or retail dealer who is required to provide an inventory under subsection (1) must pay to the government the additional amount of security determined under subsection (7), within the time required by the director.

The amount of additional security payable is the difference between

an amount equal to the tax that would be collectable for the fuel that was required to be included in the inventory, if that fuel were sold, immediately after the increase in the rate of tax, to a purchaser who is liable to pay tax on the purchase, and

the amount the deputy collector or retail dealer paid as security in respect of the fuel.

An amount that is paid by a deputy collector or retail dealer as security under subsection (6) may, unless the amount is refunded under this Act, be retained by the government in satisfaction of the deputy collector's or retail dealer's obligation to collect and remit the tax imposed by this Act on a purchaser of the fuel.

Subject to subsection (11), if the rate of tax decreases, a deputy collector or retail dealer who was required to provide an inventory under subsection (1) may apply to the director for a refund of the amount of security determined under subsection (10).

The refund payable under subsection (9) equals the portion of the security the deputy collector or retail dealer paid that exceeds the amount of tax that would be collectable for the fuel required to be included in the inventory, if that fuel were sold, immediately after the decrease in the rate of tax, to a purchaser who is liable to pay tax on the purchase.

The director must pay to a person a refund under subsection (9), from the consolidated revenue fund, if the director is satisfied that the person has not received and is not to receive a refund of the security from any person with respect to the fuel.

Despite

section 28 (5), if, on or after April 1, 2025, a deputy collector or retail dealer who was required to provide an inventory under subsection (1) of this

section receives, in respect of fuel included in the inventory, an amount as if it were security under this Act, the deputy collector or retail dealer must remit the amount received to the government at the prescribed time and in the prescribed manner.

Refunds

Refund of taxes paid or remitted

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

1.1

Despite subsection (1) of this

section and

section 42 (1) (a), if a person has paid to a retail dealer of natural gas an amount as if it were tax in respect of natural gas delivered on or after April 1, 2025, the retail dealer must, within 180 days after the date on which the amount was paid, refund or credit that amount to the person.

1.2

A person who has applied for or received a refund or credit from a retail dealer of natural gas under subsection (1.1) is not entitled to, and must not request, a refund under subsection (1) in respect of the same payment of an amount as tax.

If the director is satisfied that a collector has remitted to the government an amount as collected taxes that the collector neither collected nor was required to collect under this Act, the director must refund the amount to the collector from the consolidated revenue fund.

2.1

Subsection (2) applies to a person who sells fuel in a sale to which

section 1.1 (2) (

a) to (

c) applies as if the person were a collector.

If the director is satisfied that a retail dealer of natural gas has remitted to the government an amount as collected taxes that the retail dealer neither collected nor was required to collect under this Act, the director must refund the amount to the retail dealer from the consolidated revenue fund.

Refund of security

If the director is satisfied that a collector has paid an amount as security to the government in circumstances where there was no legal obligation to pay the amount as security, the director must refund, from the consolidated revenue fund, that amount to the collector.

1.1

Subsection (1) applies to a person who sells fuel in a sale to which

section 1.1 (2) (

a) to (

c) applies as if the person were a collector.

1.2

Subject to subsection (2.1), if the director is satisfied that

a deputy collector has paid an amount as security on fuel,

the deputy collector is a refiner collector,

the fuel was subsequently sold to another refiner collector, and

the other refiner collector was not required, as a result of

section 17 (2) or 32 (1.1), to pay security on the fuel,

the director must refund, from the consolidated revenue fund, that amount to the deputy collector.

Subject to subsection (2.1), if the director is satisfied that a person who is a collector, deputy collector or retail dealer has paid an amount as security, or an amount as if it were security, on fuel that

was sold to a purchaser who was not liable to pay tax on that purchase,

was not sold and is not to be sold to a purchaser, or

was sold to a registered air service or registered marine service, and was the type or subcategory of a type of fuel specified on the registered air service's or registered marine service's certificate,

the director must pay, from the consolidated revenue fund, to the person the difference between the amount the person paid on the fuel and the amount of security or tax the person received for the fuel.

2.1

A refund is not payable under subsection (1.2) or (2) in respect of the fuel if,

in the case of a person who has paid security on fuel and has subsequently coloured and sold that fuel, the person has not complied with sections 14 and 14.1 of the Motor Fuel Tax Act , or

in the case of a person who has paid security on coloured fuel and has subsequently sold that coloured fuel, the person has not complied with

section 14.1 of the Motor Fuel Tax Act .

A deputy collector or retail dealer who has received an amount under subsection (1.2) or (2) for a fuel is not entitled to, and must not request, a refund of security from the person who sold the fuel to the deputy collector or retail dealer.

If a vendor, wholesale dealer or retail dealer receives an amount under subsection (1.2) or (2) for a fuel and subsequently receives security or collects tax or an amount as if it were tax on the fuel with respect to which the amount was paid, the vendor, wholesale dealer or retail dealer must pay to the government the amount received or collected on the fuel at the prescribed time and in the prescribed manner.

Refund or deduction for bad debts

In this section:

sale means a sale referred to in subsection (2) (a);

seller means a collector, deputy collector or retail dealer;

specified amount , in relation to a sale, means a portion, determined in the prescribed manner, of the amount remitted or paid to the government by the seller in respect of taxes or security payable under this Act on the sale.

This

section applies to a seller in respect of a sale if

the seller sells fuel,

the seller, in accordance with this Act,

remits the tax required under this Act to be collected for the sale, or

pays or has paid the security required under this Act to be paid in respect of the fuel,

the person buying the fuel does not pay to the seller the full amount of the consideration in respect of the sale, and

within 4 years of the date on which the tax or security referred to in paragraph (b) (

i) or (ii), as the case may be, was remitted or paid, the seller writes off as unrealizable or uncollectable the amount owing by the person who bought the fuel.

If a seller to whom this

section applies in respect of a sale is a collector or a retail dealer of natural gas, the seller may deduct the specified amount from the amount of taxes or security that the seller is required to remit or pay under this Act in respect of the reporting period in which the seller writes off the amount owing referred to in subsection (2) (d).

A deduction referred to in subsection (3) must be made in a form specified by the director.

If the director is satisfied that

this

section applies to a seller in respect of a sale, and

if the seller is a collector or a retail dealer of natural gas, the seller has not made a deduction under subsection (3) in respect of the sale,

the director must refund from the consolidated revenue fund the specified amount to the seller.

If a seller who is a collector or a retail dealer of natural gas has made a deduction under subsection (3) or obtained a refund under subsection (5) and recovers some or all of the amount referred to in subsection (2) (

d) with respect to which the refund was paid or the deduction was made, the seller must add an amount, determined in the prescribed manner, to the tax to be remitted or security to be paid by the seller under this Act in respect of the reporting period in which the recovery was made.

If a seller, other than a seller referred to in subsection (6), who obtained a refund under subsection (5) recovers some or all of the amount referred to in subsection (2) (

d) with respect to which the refund was paid, the seller must pay to the government an amount, determined in the prescribed manner, on or before the last day of the month following the month in which the recovery was made.

Refund for interjurisdictional air or marine travel or transport

If the director is satisfied that an amount has been paid as tax for fuel that was used for interjurisdictional air or marine travel or transport in the prescribed circumstances and in accordance with the prescribed rules, the director must pay a refund, from the consolidated revenue fund, in accordance with the regulations.

Refund for farmers

39.1

Subject to the regulations, if the director is satisfied that

a farmer paid tax under this Act for fuel that

was a prescribed type of fuel,

was a prescribed subcategory of a type of fuel, or

iii

was in a prescribed class of a type of fuel or of a subcategory of a type of fuel, and

the fuel was used for a prescribed purpose,

the director must pay to the farmer, from the consolidated revenue fund, a refund of the tax paid by the farmer.

Refunds authorized or required under the regulations

The director

if authorized by the regulations, may pay from the consolidated revenue fund a refund of all or a portion of tax or security paid by an applicant for a refund, and

if required by the regulations, must pay from the consolidated revenue fund a refund of all or a portion of tax or security paid by an applicant for a refund.

Claim for refund

To claim a refund under this Act, a person must submit to the director

subject to the regulations, a written application in a form and manner specified by the director and signed by the person who paid or remitted the amount claimed, and

any information or document required by the director, in a manner specified by the director.

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

2.1

Despite anything in this Act or the regulations, the director is not required to pay a refund to a person who claims a refund under subsection (1) unless the requirements of subsections (1) and (2) are met.

A person who is required to file a return for tax or security under this Act may

instead of submitting a written application under subsection (1) (a), submit, as part of the return, a claim for a refund for the reporting period to which the return relates, and

deduct the amount of the refund claimed from the amount of tax or security required to be remitted or paid by the person.

Refund limits

Despite

section 16 of the Financial Administration Act ,

a refund of less than $10 must not be made,

a refund, other than a refund referred to in paragraph (c), must not be made on a claim for a refund that is received by the director more than 4 years after the date on which the amount claimed was paid or remitted, and

a refund to a person under

section 38 (5) must not be made on a claim for a refund that is received by the director more than 4 years after the date on which the person who sold the fuel referred to in

section 38 writes off as unrealizable or uncollectable the amount owing by the person who bought that fuel.

Despite the Limitation Act , an action for a refund must not be brought more than 4 years after the date on which the amount claimed was paid or remitted.

Tax Collection Administration

Inspection and audit powers

Except as limited by subsection (4), to determine whether, with respect to a fuel, 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, the premises where the records of the person are kept or a site at which fuel is manufactured, sold, stored or used, in order to do any of the following:

inspect, audit and examine books of account or other records;

inspect, ascertain the quantities of, and take samples of fuel, including, without limitation, fuel in fuel tanks of motor vehicles, aircraft or ships or fuel tanks mounted on motor vehicles, aircraft or ships.

Except as limited by subsection (4), to determine whether, with respect to combustibles, 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, the premises where the records of the person are kept or a site at which combustibles are burned for the purpose of producing energy or heat, in order to do any of the following:

inspect, audit and examine books of account or other records;

inspect, ascertain the quantities of, and take samples of combustibles.

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

produce all books of account or other records as may be required by the director, and

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

The power to enter a place under subsection (1) or (2) 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).

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) or (2), 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) (

a) and (

b) or (2) (

a) and (b).

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

A person must not

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

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

Fee for attending at location outside of British Columbia

43.1

If the director is satisfied that it is necessary to attend at a location outside of British Columbia for the purpose of determining whether a person is complying with or has complied with this Act and the regulations, the director may impose on the person a fee payable to the government in an amount not exceeding the amount calculated under subsection (2) in respect of attending at that location.

Subject to the regulations, the director may calculate the amount for the purposes of subsection (1) based on

fees set by the director, or

a manner of calculating fees that is set by the director.

For the purposes of subsection (2), the fees and manner set by the director may be different for different circumstances defined by the director or for attending at different locations.

In imposing a fee under subsection (1), the director may not impose a fee in respect of attending at a location more than 4 years before the date of the first notice of assessment for that fee.

Estimate of unremitted tax or unpaid security

If a person who is required to file a return for tax or security under this Act fails to file a return, pay tax or security or remit an amount as required under this Act, or if the records of a person do not substantiate a return of the person for tax or security, the director may make an estimate of the amount that was collected or is payable by the person and for which the person has not accounted.

The amount estimated under subsection (1) is deemed to be the amount collected or payable by the person in respect of whom the estimate is made.

In making an estimate 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.

Despite subsection (3), the director may enter into a written agreement with a person in which the person waives subsection (3) and allows the director, in making an estimate under this section, to consider and include any period specified in the agreement.

Assessment if amount not paid or remitted or if excess deduction or refund

0.1

If it appears from an inspection, audit or examination or from other information available to the director that taxes have not been paid as required under this Act, the director may

calculate, in the manner and by the procedure the director considers appropriate, the tax not paid, and

assess the person liable to pay the tax.

If it appears from an inspection, audit or examination or from other information available to the director that security has not been paid or an amount has not been remitted as required under this Act, the director must

calculate, in the manner and by the procedure the director considers appropriate, the security not paid or amount not remitted, and

assess the person liable to pay the security or remit the amount.

1.1

Subsection (1) does not apply in respect of security on fuel that has not been paid by a person, to the extent that the director is satisfied that, in respect of the sale of the fuel by the person, or in respect of a subsequent sale of that fuel,

tax required to be paid or remitted under this Act has been paid or remitted to the government,

a penalty imposed under

section 46 in an amount equal to the amount referred to in paragraph (

a) of this subsection has been paid to the government, or

the person to whom the fuel was sold would be entitled to a refund of tax or security under this Act if that person had paid that tax or security.

1.2

If, in accordance with subsection (1.1), subsection (1) does not apply in relation to security not paid under this Act, the security is no longer an amount owing to the government.

1.3

If it appears from an inspection, audit or examination or from other information available to the director that a person has deducted an amount under

section 38 (3) that was in excess of the amount that the person was entitled to deduct under that section, the director must make an assessment against the person in an amount equal to the excess amount deducted plus interest calculated at the rate and in the manner prescribed.

If it appears from an inspection, audit or examination or from other information available to the director that a person has received a refund of an amount under this Act or has deducted an amount under

section 41 (3) that was in excess of the refund amount that was due to the person, the director must make an assessment against the person in an amount equal to the excess amount refunded or deducted plus interest calculated at the rate and in the manner prescribed.

2.01

Subsection (2) does not apply in relation to a person who has received a refund of an amount under this Act, other than a refund of an amount under

section 38 (5), or who has made a deduction of an amount under

section 41 (3), to the extent that the director is satisfied that

the refund or deduction is in respect of security on fuel that was paid by the person,

the person did not, in respect of the sale by that person of the fuel referred to in paragraph (

a) of this subsection,

receive and retain security, or receive and retain an amount as if it were security, or

collect and retain tax, or collect and retain an amount as if it were tax, and

in respect of the sale by the person of the fuel referred to in paragraph (

a) of this subsection, or in respect of a subsequent sale of that fuel,

tax required to be paid or remitted under this Act has been paid or remitted to the government,

a penalty imposed under

section 46 in an amount equal to the amount referred to in subparagraph (

i) of this paragraph has been paid to the government, or

iii

the person to whom the fuel was sold would be entitled to a refund of tax or security under this Act in respect of that fuel if that person had paid that tax or security.

2.1

If it appears from an inspection, audit or examination or from other information available to the director that a person has not paid an amount required to be paid under

section 53 (2), the director must make an assessment against the person in an amount equal to the amount required to be paid under that section.

2.2

If it appears from an inspection, audit or examination or from other information available to the director that a person has not paid an amount required to be paid under

section 65 (4), the director must make an assessment against the person in an amount equal to the amount required to be paid under that section.

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.

Despite subsection (3), 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.

Despite subsection (3), the director may enter into a written agreement with a person in which the person waives subsection (3) and allows the director, in making an assessment under this section, to consider and include any period specified in the agreement.

Failure to collect taxes

Subject to subsection (2), if it appears from an inspection, audit or examination or from other information available to the director that an amount of tax imposed under this Act should have been but was not collected, the director must impose on the person who should have collected the tax a penalty equal to the amount of the tax that should have been collected, plus interest calculated at the rate and in the manner prescribed.

1.1

If the director must impose a penalty on a person under subsection (1), the director, despite that subsection, may impose a penalty on the person as follows:

if the director is satisfied that the person liable to pay the tax has paid the tax to the government, the director may impose on the person who should have collected the tax a penalty equal to the amount of the penalty that would otherwise be imposed under that subsection less the amount of tax paid to the government by the person liable to pay the tax, plus interest calculated at the rate and in the manner prescribed;

if the director is satisfied that the person liable to pay the tax would be entitled to a refund of the tax if the person had paid the tax, the director may impose on the person who should have collected the tax a penalty equal to the amount of the penalty that would otherwise be imposed under that subsection less the amount of the refund of tax to which the person would be entitled, plus interest calculated at the rate and in the manner prescribed.

The director must not impose a penalty on a person under subsection (1) or (1.1) in respect of fuel

if the person is assessed for failing to pay security under

section 45 (1) in respect of that fuel,

if, in accordance with

section 45 (1.1),

section 45 (1) does not apply in respect of that fuel,

if the person is assessed under

section 45 (2) in relation to an amount refunded to the person or deducted by the person in respect of that fuel, or

if, in accordance with

section 45 (2.01),

section 45 (2) does not apply in relation to the person in respect of that fuel.

A person who has paid an amount imposed under subsection (1) may, in a court of competent jurisdiction, sue the person who was liable to pay the tax in order to recover the amount imposed under subsection (1), and any amount recovered in the action may be retained by the plaintiff as compensation for the amount paid under subsection (1).

In imposing a penalty 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.

Despite subsection (4), in imposing a penalty under this

section the director may consider and include any period, if the penalty is imposed as a result of a contravention, of this Act or the regulations, involving wilful default or fraud.

Despite subsection (4), the director may enter into a written agreement with a person in which the person waives subsection (4) and allows the director, in imposing a penalty under this section, to consider and include any period specified in the agreement.

Additional penalties — failure to collect, remit or pay

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

if the director is satisfied that a person who collected an amount or received security in respect of a fuel wilfully failed to remit the amount or pay security on the fuel to the government as required under this Act, impose on the person a penalty equal to 100% of the amount not remitted or paid;

in any case other than a case referred to in paragraph (a), if the director is satisfied that a person, by wilfully, or in circumstances amounting to gross negligence, making a false or deceptive statement, by wilful default or default in circumstances amounting to gross negligence or by fraud,

failed to collect, remit or pay any amount to the government as required under this Act,

deducted an amount under

section 38 (3) that was in excess of the amount that the person was entitled to deduct under that section, or

iii

received a refund of an amount under this Act, or deducted an amount under

section 41 (3), that was in excess of the refund amount that was due to the person,

impose on the person a penalty equal to 25% of, as applicable, the amount not collected, remitted or paid as required under this Act or the excess amount deducted or received;

in any case other than a case referred to in paragraph (

a) or (b), if the director is satisfied that a person

failed to collect, remit or pay any amount to the government as required under this Act,

deducted an amount under

section 38 (3) that was in excess of the amount that the person was entitled to deduct under that section, or

iii

received a refund of an amount under this Act, or deducted an amount under

section 41 (3), that was in excess of the refund amount that was due to the person,

impose on the person a penalty equal to 10% of, as applicable, the amount not collected, remitted or paid as required under this Act or the excess amount deducted or received.

If the director is satisfied that a vendor sold, within British Columbia, a type or subcategory of a type of fuel other than natural gas before the vendor was appointed a collector for that fuel, the director may impose on the vendor, in addition to any other penalty, a penalty equal to the greater of

10% of the security that the vendor would have been required to pay under

section 30 in respect of that fuel if the vendor, at the time of sale, had been a collector who was not exempt from the requirement to pay security under that section, and

the difference between the total tax payable in respect of the fuel under this Act and the amount of tax and security paid or remitted to the government under this Act in respect of that fuel.

If the director is satisfied that a vendor whose appointment as a collector for a type or subcategory of a type of fuel is effective in accordance with

section 16 (2.3) sold, within British Columbia, that type or subcategory of a type of fuel in the period described in

section 26.1, the director may impose on the vendor, in addition to any other penalty, a penalty equal to 10% of the security that the vendor would have been required to pay under

section 30 in respect of that fuel if the vendor, at the time of sale, had been a collector.

For the purposes of subsection (5) and despite

section 16 (2.3), a vendor whose appointment as a collector for a type or subcategory of a type of fuel is effective in accordance with

section 16 (2.3) is deemed to have been appointed a collector at the time the director made the appointment.

If the director is satisfied that a vendor wilfully sold fuel contrary to

section 15, the director may impose on the vendor, in addition to any other penalty, a penalty equal to the amount of security that the vendor would have been required to pay under

section 30 in respect of that fuel if the vendor, at the time of sale, had been a collector who was not exempt from the requirement to pay security under that section.

If the director is satisfied that a person has sold natural gas contrary to

section 18, the director may impose on the person, in addition to any other penalty, a penalty equal to the difference between the total tax payable in respect of the natural gas under this Act and the amount of tax and security paid or remitted to the government under this Act in respect of that natural gas.

Penalty for failure to file return

47.1

If a person who is required under this Act to file a return in respect of a reporting period fails to file the return within the time required under this Act, the director may impose on the person a penalty equal to the total of

5% of the amount not collected, remitted or paid as required under this Act in respect of the reporting period to which the return relates, and

the amount determined by the following formula:

amount = 1% × A × B

where

the amount not collected, remitted or paid as required under this Act in respect of the reporting period on the date the return was required to be filed;

the number of months, not exceeding 12 and rounded down to the nearest whole number, in the period beginning on the date the return was required to be filed and ending on the earlier of

(

i) the date the return was filed, and

(ii) the date a penalty is imposed under this

section on the person.

Penalty for repeated failure to file return

47.2

In this section, return means a return in respect of a reporting period.

If all of the following apply:

a person fails to file a return required under this Act within the time required under this Act;

the person subsequently fails to file a return under

section 72 (1) (

a) within the time required under that section;

a penalty was imposed on the person under

section 47.1 in respect of a failure to file a return referred to in that

section for any of the 3 preceding reporting periods,

the director may impose on the person a penalty equal to the total of

10% of the amount not collected, remitted or paid as required under this Act in respect of the reporting period on the date the return referred to in paragraph (

a) was required to be filed, and

the amount determined by the following formula:

amount = 2% × A × B

where

the amount not collected, remitted or paid as required under this Act in respect of the reporting period on the date the return referred to in paragraph (

a) was required to be filed;

the number of months, not exceeding 20 and rounded down to the nearest whole number, in the period beginning on the date the return was required to be filed and ending on the earlier of

(

i) the date the return was filed, and

(ii) the date a penalty is imposed under this

section on the person.

Penalty for failure to provide required information

47.3

If a person who is required to file a return under this Act fails to include in the return any required information or fails to file with the return any other required information or records, the director may impose on the person a penalty of $100 for each failure.

Penalties respecting information and records

47.4

If a person fails to comply with a provision in subsection (2), the director may impose on the person, in respect of each failure, a penalty equal to the greater of

$100, and

$25 for each day during which the failure continues, to a maximum of $2 500.

For the purposes of subsection (1), the following provisions are specified:

section 43 (3) (

a) and (b);

section 43 (6);

section 72 (3).

Penalty for interfering with investigation, inspection or audit

47.5

If a person contravenes

section 43 (7) (

a) or (b), the director may impose on the person a penalty of $100 for each contravention.

Misrepresentation by third party

47.6

In this section, culpable conduct means any of the following:

wilfully, or in circumstances amounting to gross negligence, making a false or deceptive statement;

a wilful default or a default in circumstances amounting to gross negligence;

fraud.

If the director is satisfied that, due to the culpable conduct of a third party, another person

failed to collect, remit or pay any amount to the government as required under this Act,

deducted an amount under

section 38 (3) that was in excess of the amount that the person was entitled to deduct under that section, or

received a refund of an amount under this Act, or deducted an amount under

section 41 (3), that was in excess of the refund amount that was due to the person,

the director may impose on the third party a penalty equal to the greater of

$100, and

25% of, as applicable, the amount not collected, remitted or paid as required under this Act or the excess amount deducted or received.

A third party who is an advisor to a person required to collect, remit or pay an amount under this Act does not engage in culpable conduct for the purposes of subsection

(2) solely because the third-party advisor, in good faith, relies on information provided to the third-party advisor by or on behalf of the person under circumstances amounting to culpable conduct, or

because of such reliance, the third-party advisor failed to verify, investigate or correct the information.

In an appeal to the Supreme Court under

section 57 of this Act, the onus is on the minister to establish the facts justifying the imposition of a penalty to which a person is liable under this section.

Board member's liability

Subject to this section, if a corporation has failed to collect or remit taxes, or to pay an amount of security as required under this Act, a board member of that corporation is jointly and severally liable with the corporation to pay an amount equal to

the taxes that the corporation failed to collect or remit during the term of the board member, any related penalty and any interest on that amount and the penalty, and

the security that the corporation failed to pay during the term of the board member, any related penalty and any interest on that amount and the penalty.

A board member is not liable under subsection (1) unless one of the following has occurred:

a certificate has been filed under

section 61 with respect to the amount the corporation is liable to pay under this Act;

the corporation has been dissolved or has commenced liquidation or dissolution proceedings in any jurisdiction;

the corporation has, under the Bankruptcy and Insolvency Act (Canada),

made an assignment in bankruptcy,

filed a notice of intention to make a proposal with the official receiver, or

iii

made a proposal under Division 1 of

Part III of that Act;

a bankruptcy order has been made against the corporation under the Bankruptcy and Insolvency Act (Canada);

the corporation has obtained a court order granting a stay of proceedings under

section 11.02 of the Companies' Creditors Arrangement Act (Canada) ;

the corporation has been or is subject in any jurisdiction to a proceeding of a similar nature to a proceeding referred to in paragraphs (

c) to (e).

A board member is not liable under subsection (1) if the board member exercised the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances to prevent the corporation's failure to collect or remit taxes or to pay security as required under this Act.

Refunds when joint and several liability

Despite sections 36 (2) and 37, or any regulation that requires the payment of a refund of amounts collected or security to a corporation, if the director is satisfied that the total of the amount paid by one or more board members who are jointly and severally liable with the corporation under

section 48 and the amount, if any, paid by the corporation exceeds the amount owed by the corporation under this Act for the period that the board members, who made the payments, were jointly and severally liable with the corporation, the director must pay a refund from the consolidated revenue fund in accordance with the following:

if only one board member paid all or part of the amount for which one or more board members and the corporation were jointly and severally liable under

section 48 (1), refund to the board member the amount of the excess, up to the amount paid by the board member;

if 2 or more board members paid the amount or a part of the amount for which board members and the corporation were jointly and severally liable under

section 48, refund to the board members the amount of the excess divided proportionately between the board members, up to the amount paid by each board member;

after making the payment under paragraph (

a) or (b), refund to the corporation any remaining amount of the excess, up to the amount paid by the corporation.

A refund under subsection (1) (

b) must be based on the ratio of the amounts paid by the board members who are jointly and severally liable under

section 48 (1) for the applicable period of the refund.

A refund may be paid under subsection (1) only to a board member or corporation who has applied for a refund.

Deemed board member

If the director has reason to believe that a person who was not a member of the board of directors of a corporation performed some or all of the functions of a member of the board of directors of the corporation, the director may request the person and the corporation to provide to the director the records and information required by the director, in a manner specified by the director, to confirm or rebut that belief.

Subject to subsection (3), the director may decide that a person performed some or all of the functions of a member of the board of directors of a corporation if

the person or the corporation that has been requested to provide records or information to the director under subsection (1) fails or refuses to comply with the request within a period of time considered by the director to be reasonable in the circumstances, or

the records or information provided to the director under this

section confirm that the person performed some or all of the functions of a member of the board of directors of the corporation.

The director must not decide under subsection (2) (

b) that a person performed some or all of the functions of a member of the board of directors of a corporation if the decision is based solely on

the person participating in the corporation's management under the direction or control of a shareholder, one or more members of the board of directors or a senior officer of the corporation,

the person being a lawyer, accountant or other professional whose primary participation in the management of the corporation was the provision of professional services to the corporation,

the corporation being bankrupt and the person being a trustee in bankruptcy who participates in the management of the corporation or exercises control over its property, rights and interests primarily for the purposes of the administration of the bankrupt's estate, or

the person being a receiver, receiver manager or secured creditor who participates in the management of the corporation or exercises control over any of its property, rights and interests primarily for the purposes of enforcing a debt obligation of the corporation.

If the director decides under subsection (2) that a person performed some or all of the functions of a member of the board of directors of a corporation, the person is deemed a board member of the corporation for the purposes of this Act for a term that equals the period the person performed those functions.

Immediately after the director makes a decision under subsection (2), the director must give written notice of the decision to

the person to whom the decision relates, and

the corporation.

Notice of assessment

Subject to subsection (1.2), the director must give a notice of assessment to the person liable to pay an amount estimated, assessed or imposed if the director

makes an estimate or assessment under

section 44, 45 or 52, or

imposes a fee under

section 43.1 or imposes a penalty under any of sections 46, 47, 47.1, 47.2, 47.3, 47.4, 47.5 or 47.6.

1.01

Despite

section 46 (1) (

b) of the Motor Fuel Tax Act , the director may include in a notice of assessment given to a person under subsection (1) of this

section a fee imposed under

section 41.1 of the Motor Fuel Tax Act as if the fee were a fee imposed under

section 43.1 of this Act if

the director imposes on the person a fee under

section 43.1,

the director under the Motor Fuel Tax Act imposes on the person a fee under

section 41.1 of the Motor Fuel Tax Act , and

the director under the Motor Fuel Tax Act authorizes the director under this Act to include the fee imposed under the Motor Fuel Tax Act in the notice of assessment.

1.02

Despite

section 197 (1) (

b) of the Provincial Sales Tax Act , the director may include in a notice of assessment given to a person under subsection (1) of this

section a fee imposed under

section 196.2 of the Provincial Sales Tax Act as if the fee were a fee imposed under

section 43.1 of this Act if

the director imposes on the person a fee under

section 43.1,

the director under the Provincial Sales Tax Act imposes on the person a fee under

section 196.2 of the Provincial Sales Tax Act , and

the director under the Provincial Sales Tax Act authorizes the director under this Act to include the fee imposed under the Provincial Sales Tax Act in the notice of assessment.

1.1

If the director assesses interest under

section 55 or 55.1, the director may give a notice of assessment to the person liable to pay the amount of interest assessed.

1.2

In addition to, or as an alternative to, giving a notice of assessment under subsection (1) or (1.1), the director may give a notice of assessment to the custodian or trustee in bankruptcy of the person referred to in subsection (1) or (1.1).

Evidence that a notice of assessment under subsection (1) or (1.1) has been given is proof, in the absence of evidence to the contrary, that the amount estimated, 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 estimated, assessed or imposed.

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

Subject to being amended, changed or varied by reassessment, a fee imposed under

section 43.1 is valid and binding despite any error, defect or omission in the fee or in procedure.

Assessment against board member

If the director decides that a board member is jointly and severally liable for an amount under

section 48, the director may assess the board member for

the amount assessed under

section 45 or 46 or both against the corporation for the corporation's failure to collect or remit taxes or pay security or both as required during the term of the board member, any related penalty and any interest on that amount and the penalty, and

the amount estimated under

section 44

as the tax the corporation collected, or

as the security payable by the corporation

during the term of the board member, any related penalty and any interest on that amount and the penalty.

The director must not make an assessment under subsection (1) in respect of the liability of a board member under

section 48 if

the person is no longer a board member of that corporation, and

it is more than 2 years after the last date that the person was a board member of that corporation.

Certificate required for bulk transaction

In this section:

bulk transaction means either of the following:

a disposition of substantially all of the inventory of fuel in British Columbia of a seller's business;

a disposition of an interest in a seller's business carried on in British Columbia;

seller means a vendor, wholesale dealer or retail dealer;

seller's business , in relation to a bulk transaction made, or proposed to be made, by a seller, means the seller's business referred to in paragraph (

a) or (b), as the case may be, of the definition of "bulk transaction".

If a person purchases fuel or an interest in a business from a seller through a bulk transaction without obtaining from the seller a duplicate copy of the certificate obtained under subsection (3), the person must pay to the government an amount equal to the total of all amounts owing under this Act, on the date of the bulk transaction, by the seller in respect of the seller's business.

On application in a form and manner specified by the director, the director may issue a certificate in duplicate to a seller in respect of a proposed bulk transaction if all amounts owing under this Act by the seller in respect of the seller's business have been paid.

An amount payable under subsection (2) in respect of a bulk transaction must be paid on or before the last day of the month after the month in which the bulk transaction occurred.

Irregularities

An estimate or assessment made, or a fee or 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 the notice of assessment is given.

Interest until notice of assessment given

In this section:

non-assessed amount , in relation to a particular period, means an amount owing to the government under this Act for which a notice of assessment has not been given under this Act, including the following:

any interest on that amount that has accrued by the beginning of the period, but not including any penalty imposed under this Act and any interest on that penalty;

despite

section 45 (1.2), security that has not been paid as required under this Act but for which the person liable may not be assessed in accordance with

section 45 (1.1);

the amount of a refund received by a person under this Act that was in excess of the refund amount that was due to the person but for which the person may not be assessed in accordance with

section 45 (2.01);

an amount deducted by a person under

section 41 (3) that was in excess of the refund amount that was due to the person but for which the person may not be assessed in accordance with

section 45 (2.01);

refund amount , in relation to a person for a particular period, means an amount equal to the amount

that the person is entitled to receive from the government as a refund under

Part 6, including any interest on that amount that has accrued by the beginning of the period, and

on which interest payable by the government would be accruing under the Financial Administration Act but for this section.

Subject to this section, the director may assess at any time interest, calculated at the prescribed rate and in the prescribed manner, on an amount owing to the government under this Act until the date that a notice of assessment is given in relation to the amount owing.

2.1

Interest may not be assessed under subsection (2) in relation to a fee imposed under

section 43.1.

In relation to security referred to in paragraph (

b) of the definition of "non-assessed amount", the director may assess interest on the security as if that security were an amount owing to the government from the date that the person was required under this Act to pay that security to the government until 60 days after that date.

3.1

In relation to an amount referred to in paragraph (

c) of the definition of "non-assessed amount", the director may assess interest on the amount from the date on which the refund was paid to the person until 60 days after that date.

3.2

In relation to an amount referred to in paragraph (

d) of the definition of "non-assessed amount", the director may assess interest on the amount from the date on which the tax or security required to be remitted or paid by the person for the applicable reporting period referred to in

section 41 (3) (

a) was due until 60 days after that date.

Subsection (5) applies in relation to an assessment of interest for a particular period if

the director is satisfied, based on an inspection, audit or examination or on other information available to the director, that for the particular period

a person owes a non-assessed amount to the government, and

the person is eligible to receive a refund amount from the government, and

the non-assessed amount referred to in paragraph (a) (

i) exceeds or equals the refund amount referred to in paragraph (a) (ii).

In relation to an assessment of interest for a particular period to which this subsection applies, interest may be assessed under subsection (2) in relation to a non-assessed amount for the particular period by assessing interest on the amount equal to the non-assessed amount for the particular period less the refund amount for the particular period.

If interest is assessed under subsection (2) for a particular period in accordance with subsection (5), despite the Financial Administration Act and the regulations under that Act, no interest is payable for the particular period by the government in relation to the person's refund amount.

Subsection (8) applies in relation to a particular period if

the director is satisfied, based on an inspection, audit or examination or on other information available to the director, that for the particular period

a person owes a non-assessed amount to the government, and

the person is eligible to receive a refund amount from the government, and

the refund amount referred to in paragraph (a) (ii) exceeds the non-assessed amount referred to in paragraph (a) (i).

In relation to a particular period to which this subsection applies, interest may not be assessed under subsection (2) in relation to the non-assessed amount for the particular period.

If interest may not be assessed under subsection (2) for a particular period in accordance with subsection (8), for the purposes of the regulations under

section 27 (1) (

c) of the Financial Administration Act , the amount owing by the government for the particular period is deemed to be reduced by the non-assessed amount for that particular period.

For the purposes of this section, the director may determine, in a manner and by a procedure the director considers adequate and expedient, when an amount became owing to the government.

For the purposes of this

section and the regulations under

section 27 (1) (

c) of the Financial Administration Act , the director may determine, in a manner and by a procedure the director considers adequate and expedient, when an amount became owing by the government.

For the purposes of this section, a period of time ends and a new period may begin if

the non-assessed amount or refund amount changes, or

a notice of assessment is given in relation to all or part of a non-assessed amount.

Interest after notice of assessment given

55.1

The director may assess at any time interest, calculated at the prescribed rate and in the prescribed manner, on an amount owing to the government under this Act from the date that a notice of assessment is given in relation to the amount owing.

Appeals

Appeal to minister

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

a refund of tax paid or remitted or security paid under this Act;

a refusal to appoint a collector or refiner collector or to issue a registration certificate, registered consumer certificate, registered air service certificate or registered marine service certificate;

a cancellation of an appointment of a collector or refiner collector or a registration certificate, registered consumer certificate, registered air service certificate or registered marine certificate under

section 23 (4) (a), (

b) or (b.1);

an estimate or assessment or an imposition of a penalty under

section 44, 45, 46, 47, 47.1, 47.2, 47.3, 47.4, 47.5, 47.6, 52, 55 or 55.1;

a decision of the director under

section 50 (2) (

b) or 64 (11) (b);

a refusal under

section 30 (6), 31 (2) or 32 (2) to exempt a collector, deputy collector or retail dealer from the requirement to pay security.

If the director cancels a collector's or refiner collector's appointment or cancels a registration certificate, registered consumer certificate, registered air service certificate or registered marine service certificate under

section 23 (4) (c), an appeal lies from the decision of the director to the minister, unless an appeal is not permitted under the regulations.

Written notice of the appeal must be given to the minister within 90 days after the date on the director's notice of the decision.

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

On receiving the notice of appeal, the minister must

consider the matter,

subject to subsections (6) and (7),

affirm, amend or change the assessment, decision, estimate, amount imposed or nature of the assessment, or

direct the director to reconsider the assessment, decision, estimate, amount imposed or nature of the assessment, and

promptly give the appellant written notice of the result of the appeal.

5.1

In making a decision under subsection (5) (b) (i), the minister is not required to increase an amount set out in the assessment or estimate or an amount imposed.

5.2

If the director does not change an assessment, decision, estimate or amount imposed, or the nature of an assessment, after a reconsideration under subsection (5) (b) (ii), the director must issue a notice of reconsideration to the person who appealed to the minister.

5.3

A person may appeal a notice of reconsideration by giving a notice of appeal to the minister within 90 days after the date shown on the notice of reconsideration.

If an appeal relates to a matter referred to in subsection (1) (b), the minister may

affirm the decision of the director, or

direct the director to

appoint the appellant as a collector or refiner collector subject to the conditions and limitations that the director specifies, or

issue a certificate of the type that was the subject of the appeal to the appellant, subject to the conditions and limitations that the director specifies.

If an appeal relates to a matter referred to in subsection (1) (f), the minister may

affirm the decision of the director, or

direct the director to exempt the appellant from the requirement to pay security, subject to the conditions that the director specifies.

The minister may, in writing, delegate any of the minister's powers or duties under this section.

A delegation under subsection (8) may be to a named person or to a class of persons.

Notice of appeal

56.1

The date on which a notice of appeal is given to the minister under

section 56 (3) or (5.3) is the date it is received by the minister.

A notice of appeal is conclusively deemed to have been given to the minister if it is received at a location and by a method specified by the minister.

Appeal to court

A decision of the minister under

section 56 (5) (b) (i), (6) (

a) or (7) (

a) may be appealed to the Supreme Court by way of a petition proceeding.

Subject to this

section and the regulations, the Supreme Court Civil Rules relating to petition proceedings apply to appeals under this section.

2.1

Rule 18-3 of the Supreme Court Civil Rules does not apply to appeals under this section.

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

Within 14 days after the filing of the petition under subsection (3), it 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".

An appeal under this

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

The court may dismiss the appeal, allow the appeal, vary the decision from which the appeal is made or refer the decision back to the director for reconsideration.

[Repealed 2021-18-9.]

Effects of pending appeal and of appeal changing decision

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

affects the date of payment, the interest or penalties or any liability for payment under this Act in respect of the amount estimated, assessed or imposed that is the subject matter of the appeal, or

delays the collection of the amount estimated, assessed or imposed.

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

the amount or excess amount paid, and

any additional interest or penalty imposed and paid.

If the amount of an estimate or assessment or an amount imposed is increased on appeal, the appellant must pay to the government

the additional amount owing to the government under this Act, and

any additional interest payable on the additional amount owing to the government under this Act.

Recovery of Amounts Owing

Collection bond

In this section:

applicant means any of the following:

a vendor who has applied to be appointed as a collector under

section 16;

a retail dealer of natural gas who has applied for a registration certificate under

section 19;

a person who has applied for a registered consumer certificate under

section 20;

a person who has applied for a registered air service certificate or registered marine service certificate under

section 21;

maximum bond amount , in relation to a bond required to be deposited by a person with the director under this section, means 6 times the estimated amount, determined in a manner and by a procedure the director considers adequate and expedient, of

tax that would normally be collected under this Act by the person in a month in relation to fuel for which the person would not be required to pay security,

tax that would normally be paid under this Act by the person in a month, and

security that would normally be paid under this Act by the person in a month;

taxpayer means a collector, a retail dealer of natural gas who holds a registration certificate, a registered consumer, a registered air service, a registered marine service or a motive fuel user permit holder.

The director may require an applicant or a taxpayer to deposit with the director a bond, by way of cash or other security, satisfactory to the director.

The amount of the bond is to be determined by the director, but the amount must not be greater than the maximum bond amount.

If there is a change in circumstances after a bond is provided under subsection (2), the director may vary the amount of the bond required, but the amount must not be greater than the maximum bond amount.

If a person who has deposited a bond under this

section fails to collect or pay tax, remit an amount or pay security in accordance with this Act, the director, after giving written notice to the person, may apply all or part of the bond to the amount that should have been collected, paid or remitted by the person, to any related penalty and to any interest due on that amount and the penalty.

The director may return a bond deposited under this section, or may pay from the consolidated revenue fund an amount equal to the amount remaining of a bond deposited under this section, to the person who deposited the bond if

the person has ceased being a taxpayer, and

the person as a taxpayer has no amount owing to the government under this Act.

Court action to recover amount owing

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

Summary proceedings

If a person fails to pay or remit 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.

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

A certificate filed under subsection (2) has the same force and effect, and all proceedings may be taken on the certificate, as if it were a judgment of the court in favour of the government for the recovery of a debt in the amount specified in the certificate against the person named in the certificate.

If the amount specified in a certificate is different from the actual amount owing to the government under this Act, the director may correct the amount by issuing a new certificate specifying the revised amount owed and the name of the person who owes it.

The director may file with the Supreme Court a certificate issued under subsection (4).

A certificate filed under subsection

(5) revises the certificate filed under subsection (2) that names the same person,

is deemed to be filed at the same time as the certificate it revises, and

has the same force and effect, and all proceedings may be taken on the certificate, as if it were a judgment of the court in favour of the government for the recovery of a debt in the amount specified in the certificate against the person named in the certificate.

Alternate remedies

Remedies available to the government for the recovery of an amount owing under this Act may be exercised separately, concurrently or cumulatively.

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

In this section, taxpayer means any person who is liable to pay or remit an amount under this Act.

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 all or part of the money otherwise payable to the taxpayer to the government on account of the taxpayer's liability under this Act.

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.

[Repealed 2019-36-30.]

If, under this

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

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

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

Money or a beneficial interest in money in a savings institution

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

deposited to the credit of a taxpayer after a demand is given,

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 the taxpayer in the taxpayer's capacity as a trustee.

A demand under this

section continues in effect until

the demand is satisfied, or

90 days after the demand is given,

whichever is earlier.

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 given, in which case the demand ceases to have effect at the end of that period.

Money demanded from a person by the director under this

section becomes payable as follows:

if the person is indebted or liable to make a payment to the taxpayer at the time the demand is given, as soon as the demand is given to the person;

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

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).

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

the aggregate of the money advanced or paid, and

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

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.

Money paid by any person to the government in compliance with a demand under this

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

Lien

In this section:

amount owing means an amount remaining unpaid or unremitted, any related penalty and any interest on that amount and the penalty;

associated corporation means a corporation that is

associated with another corporation within the meaning of

section 256 of the Income Tax Act (Canada), or

determined under subsection (11) of this

section to be associated with another corporation for the purposes of this section;

collateral has the same meaning as in the Personal Property Security Act ;

financing statement has the same meaning as in the Personal Property Security Act ;

inventory has the same meaning as in the Personal Property Security Act ;

personal property registry means the registry under the Personal Property Security Act ;

proceeds has the same meaning as in the Personal Property Security Act ;

property , when referring to the property of an associated corporation or a related individual, means property that is used in, or in conjunction with, the business in respect of which the amount referred to in subsection (2) is required to be collected, remitted or paid;

purchase money security interest has the same meaning as in the Personal Property Security Act ;

related individual has the same meaning as in the Property Transfer Tax Act ;

security interest has the same meaning as in the Personal Property Security Act .

If a person is required to pay or remit an amount to the government under this Act and does not pay or remit the amount, the director may register a lien

against the real property of

the person,

an associated corporation of the person, or

iii

a related individual 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

against the personal property of

the person,

an associated corporation of the person, or

iii

a related individual of the person

by registering a financing statement in the personal property registry.

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 owing.

On registration of a lien against the personal property of a person under subsection (2) (b), a lien is created on the present and after acquired personal property in which the person has a legal or equitable interest, including, in the case of a lien referred