1995 Legislative Session: 4th Session, 35th Parliament
THIRD READING
The following electronic version is for informational purposes only.
The printed version remains the official version.
Certified correct as passed Third Reading on the 2nd day of May, 1995
Ian D.Izard, Law Clerk
HONOURABLE ELIZABETH CULL
MINISTER OF FINANCE AND
CORPORATE RELATIONS
HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:
1 Section 12 (2) (f) of the Corporation Capital Tax Act, S.B.C. 1992, c. 4, is repealed and the following substituted:
(f) to the extent that these are not otherwise deducted under this Act,
(i) the interest held by the corporation as beneficiary of a mining reclamation trust within the meaning of section 248 (1) of the Income Tax Act (Canada), and
(ii) any security posted by the corporation under section 10 of the Mines Act that is not deducted under subparagraph (i); .
2 Section 16 (1) of the Ferry Corporation Act, R.S.B.C. 1979, c. 128, is repealed and the following substituted:
(1) The outstanding debt of the corporation arising from borrowings, as calculated under subsection (2), must not exceed $730 million.
3 Sections 2 (2.2), 3 (3.2), 3.1 (3.2) and 3.2 (3.2) of the Home Owner Grant Act, S.B.C. 1980, c. 18, are amended by striking out "$450 000" wherever it appears and substituting "$475 000".
4 Section 1 (1) of the Income Tax Act, R.S.B.C. 1979, c. 190, is amended by adding the following definition:
"mining reclamation trust" has the same meaning as in section 248 (1) of the federal Act; .
5 Section 2.1 is repealed and the following substituted:
2.1 In computing the tax payable under this Part for a taxation year, the deductions provided for in this Act must be applied in the following order: sections 3 (8), 6, 8, 4.3, 8.1, 8.8, 8.3 and 8.9.
6 The following section is added:
8.9 (1) This section applies to each mining reclamation trust where the mine to which it relates is situated in the Province.
(2) For each taxation year, a mining reclamation trust shall pay tax equal to 16.5% of its income that is subject to tax under Part XII.4 of the federal Act for that taxation year, and for these purposes Part XII.4 of the federal Act applies.
(3) A taxpayer who is a beneficiary of a mining reclamation trust may deduct from the tax otherwise payable under this Part for a particular taxation year of the taxpayer an amount not exceeding the tax credit calculated as the total of paragraphs (a) and (b) as follows:
(a) all amounts, each of which is an amount determined by the following formula:
| amount = trust tax x | beneficiary's income |
|
|
|
| trust income |
where
trust tax = the tax payable under subsection (2) by a mining reclamation trust for the taxation year of the trust that ends in the particular taxation year of the taxpayer;
beneficiary's income = the amount, if any, by which
the total of all amounts in respect of the trust that, by application of section 107.3 (1) of the federal Act, are included in computing the taxpayer's income for the particular taxation year, other than amounts included because of being a member of a partnership,
exceeds
the total of all amounts in respect of the trust that, by application of section 107.3 (1) of the federal Act, are deducted in computing the taxpayer's income for the particular taxation year;
trust income = the trust's income for the trust's taxation year, computed without reference to sections 104 (4) to (31) and 105 to 107 of the federal Act;
(b) in respect of each partnership of which the taxpayer was a member, the total of all amounts each of which is the amount that can reasonably be considered to be the taxpayer's share of the relevant credit in respect of the partnership.
(4) For the purpose of subsection (3) (b), the relevant credit in respect of a partnership is the amount that would, if the partnership were a person and its fiscal year end were its taxation year end, be the tax credit under subsection (3) for its taxation year that ends in the particular taxation year of the taxpayer.
(5) If all or part of the tax credit under subsection (3) remains unused after the deduction under that subsection,
(a) the remaining amount may be applied as a credit against taxes payable by the taxpayer under the federal Act for the taxation year to which the tax credit relates, if such application is permitted by a collection agreement under section 54, and
(b) if there is any amount remaining unapplied after the deduction under subsection (3) and, if applicable, under paragraph (a) of this subsection, the minister shall pay to the taxpayer the amount remaining.
(6) If, under a collection agreement under section 54, the government of Canada would permit deductions from income tax payable by taxpayers under the federal Act of amounts payable by the Provincial minister under subsection (5), or will pay to taxpayers amounts payable by the Provincial minister under subsection (5), the Provincial minister shall make payments to the government of Canada for the amount of the deductions and payments that are permitted or made by the government of Canada under the agreement.
(7) Where a taxpayer is permitted to make deductions or receive a payment in accordance with a collection agreement made under section 54, the deduction or payment is in place of payments to which the taxpayer would otherwise be entitled under subsection (5) and the taxpayer is not entitled to payment under that subsection.
7 Section 10 (1) is repealed and the following substituted:
(1) Subject to section 8.9, no tax is payable under this Act by any person for a period when the person
(a) was exempt from tax by virtue of section 149 (1) of the federal Act, or
(b) was a non resident owned investment corporation,
and any definitions or descriptions in the federal Act applying to that person apply for the purposes of this Act unless otherwise provided.
8 Section 3.25 (1) of the Property Transfer Tax Act, S.B.C. 1987, c. 15, is amended by striking out "A transferee" and substituting "Subject to section 3.251, a transferee".
9 The following section is added:
3.251 Section 3.25 (1) and (2) does not apply to a transferee who has obtained an exemption under section 3.21 or 3.22 or a refund under section 3.23 if
(a) the transferee does not comply with section 3.24 (1) (c) by reason only that
(i) the transferee dies within the first 12 months after the registration date, and
(ii) life insurance proceeds are, under the terms of a contract of life insurance, payable and paid on the death of the transferee to reduce the eligible indebtedness, or
(b) the transferee does not comply with section 3.24 (2) (a) or (b) by reason only that
(i) the transferee dies before the first anniversary date of the registration date, or
(ii) the property is transferred by the transferee pursuant to a written separation agreement or a court order under the Family Relations Act.
10 Section 5 (2) is amended
(a) by repealing paragraph (g) and substituting the following:
(g) to the trustee in bankruptcy of land forming part of the estate of a bankrupt,
(g.1) from the trustee in bankruptcy to the bankrupt of land forming part of the estate of the bankrupt where no consideration for the transfer is paid by or on behalf of the transferee and a declaration to that effect is made by the transferee and the transferor in the return filed under section 2,
(g.2) from the trustee in bankruptcy to the spouse or former spouse of the bankrupt of land forming part of the estate of the bankrupt where
(i) the land transferred was the principal residence of the bankrupt immediately before the date of the bankruptcy, and
(ii) no consideration for the transfer is paid by or on behalf of the transferee and a declaration to that effect is made by the transferee and the transferor in the return filed under section 2, , and
(b) by adding the following paragraph:
(j.2) to the Provincial Capital Commission where the land transferred is used solely for park purposes, .
11 Section 134 of the School Act, S.B.C. 1989, c. 61, is repealed and the following substituted:
134 On or before February 1 in each year, the amount received for school purposes by a municipality by way of grant in lieu of taxes in the immediately preceding calendar year shall be paid to the Minister of Finance and Corporate Relations including, without limitation, all of the following amounts that have been received for school purposes by the municipality in that preceding calendar year by way of grant in lieu of taxes:
(a) amounts under the Municipal Grants Act (Canada) from the government of Canada;
(b) amounts from a corporation included in Schedule III or IV of the Municipal Grants Act (Canada);
(c) amounts from a public body as defined in the Auditor General Act.
12 Section 1 (1) of the Social Service Tax Act, R.S.B.C. 1979, c. 388, is amended
(a) by repealing the definition of "computer software" and substituting the following:
"software" means packaged or prewritten software programs or modifications to such programs, or the right to use such programs or modifications, whether the software is delivered by electronic, disk, tape or other means, but does not include
(a) modifications to or of software solely to meet the requirements of a specific person if
(i) the purchase price or lease price, as applicable, of the modifications is separate from that of the unmodified software, and
(ii) the purchase price or lease price of the modifications is greater than the purchase price or lease price, as applicable, of the software in its unmodified form,
(b) software modified solely to meet the requirements of a specific person if
(i) the purchase price or lease price, as applicable, is for the software as modified, and
(ii) that purchase price or lease price is greater than double what it would have been for the software in its unmodified form, or
(c) custom software, being
(i) software programs developed solely to meet the requirements of a specific person, and
(ii) modifications to software referred to in subparagraph (i) when performed for the person for whom the software was originally developed,
unless the software is a copy of software referred to in paragraph (a), (b) or (c), or the right to use such software, that is sold or leased to someone other than the specific person for whom the software was originally modified or developed; , and
(b) in paragraph (b) of the definition of "tangible personal property" by striking out "computer".
13 Section 37 (2) is amended by adding the following paragraph:
(p) for the purposes of section 39 (9),
(i) prescribing tangible personal property as exploratory mining equipment, and
(ii) specifying conditions and circumstances relating to the use of such exploratory mining equipment that are required for a tax refund under that section.
14 Section 39 is amended
(a) by repealing subsection (1.1) and substituting the following:
(1.1) Unless section 2 (9) applies, where a purchaser returns tangible personal property to the vendor who sold it to the purchaser,
(a) in the case of a motor vehicle, within one year after the property was delivered to the purchaser, or
(b) in the case of other tangible personal property, within 90 days after the property was delivered to the purchaser,
and in return for the property the vendor pays a refund or allows a credit to the purchaser, the vendor shall refund to the purchaser the amount of tax paid by the purchaser that is attributable to the amount of the refund or credit. , and
(b) by adding the following subsections:
(8) On application by a person who is a bona fide farmer who
(a) has paid tax
(i) under section 2 (1) or 2.1 (1) on tangible personal property prescribed under section 4 (1) (c) that was purchased or leased by the person during the 2 years before the person became a bona fide farmer, or
(ii) under section 2.04 on the provision of taxable services in respect of tangible personal property prescribed under section 4 (1) (c) if those services were purchased by the person during the 2 years before the person became a bona fide farmer, and
(b) satisfies the commissioner that, from the date of purchase or the date of the lease, as the case may be, the tangible personal property was used solely for a farm purpose,
the commissioner may refund to that person out of the consolidated revenue fund the tax paid under the Act.
(9) On application by a person who
(a) has paid tax under section 2 on tangible personal property prescribed as exploratory mining equipment that was used as prescribed for the purposes of this section,
(b) in the case of tax referred to in paragraph (a) that was paid under section 2 (4.08), has paid the tax for 3 periods of 12 months as provided for in section 2 (4.08) and (4.09),
(c) has not received a remission under the Financial Administration Act in respect of any part of the tax referred to in paragraph (a), and
(d) satisfies the commissioner that the person qualifies under this subsection,
the commissioner may refund to that person out of the consolidated revenue fund the tax paid under the Act.
15 (1) If a person has, before March 29, 1995, paid tax under the Property Transfer Tax Act in respect of a transfer referred to in section 5 (2) (g.2) of that Act, as enacted by this Act, the person must apply to the administrator on or before March 31, 1996 in order to claim the exemption granted by that section 5 (2) (g.2).
(2) If a person has, before March 29, 1995, paid an amount as a tax liability in respect of a transfer under section 3.25 (1) and (2) of the Property Transfer Tax Act and if the person was liable to make that payment by reason only of a matter referred to in section 3.251 (a) (i) and (ii), (b) (i) or (b) (ii) of that Act, as enacted by this Act, the person must, if seeking a refund of the amount paid as the tax liability, apply to the administrator for the refund on or before March 31, 1996.
(3) The administrator must, after receiving an application for exemption referred to in subsection (1) or an application for refund referred to in subsection (2), either
(a) issue a notice of assessment respecting the transfer, or
(b) send a letter to the applicant stating why the administrator is refusing the application and, in this case, the letter is deemed to be a notice of assessment for the purposes of section 8 of the Property Transfer Tax Act.
(4) A person who objects to a refusal by the administrator to grant an exemption or pay a refund under this section shall mail a notice of objection to the Minister of Finance and Corporate Relations within 90 days after the date shown on the notice of assessment.
(5) The Property Transfer Tax Act applies to a notice of objection provided to the minister under subsection (4) as if it were a notice of objection provided under section 8 of that Act.
16 (1) A regulation under section 37 (2) (p) of the Social Service Tax Act that is made before January 1, 1996 may be made retroactive to a date on or after March 29, 1995 and, if made retroactive, is deemed to have come into force on the date specified.
(2) Sections 6 and 7 of the Financial Administration Act General Regulation, B.C. Reg. 474/81, are repealed.
17 (1) Section 12 (2) (f) of the Corporation Capital Tax Act, as enacted by this Act, applies for the purposes of taxation years that end after February 22, 1994.
(2) The amendment to section 1 of the Income Tax Act and sections 2.1, 8.9 (1) and (2) and 10 (1) of the Income Tax Act, as enacted by this Act, apply for the purposes of the 1994 and subsequent taxation years.
(3) Section 8.9 (3) to (7) of the Income Tax Act, as enacted by this Act, applies for the purposes of taxation years that end after February 22, 1994.
18 (1) Sections 1 and 4 to 7 come into force by regulation of the Lieutenant Governor in Council and, when brought into force by regulation, are retroactive to the extent necessary to give them force and effect in accordance with section 17.
(2) Section 3 is deemed to have come into force on January 1, 1995 and is retroactive to the extent necessary to give it effect on and after that date.
(3) Sections 8 to 10 and 12 to 16 are deemed to have come into force on March 29, 1995 and are retroactive to the extent necessary to give them effect on and after that date.
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