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

Part 1 — Interpretation

Definitions and interpretation

1  (1) In this Act:

"addition" means an addition to an affixed residential complex that is a multiple unit residential complex within the meaning of Part IX [Goods and Services Tax] of the federal Act;

"administrative agreement" means an agreement entered into under section 83 [administrative agreement];

"affixed mobile home" means a mobile home, within the meaning of Part IX of the federal Act,

(a) that, immediately before April 1, 2013, was affixed to land situated in British Columbia for the purpose of the use and enjoyment of the mobile home as a place of residence for an individual within the meaning of Part IX of the federal Act, and

(b) that was affixed to the land by or on behalf of a builder of the mobile home,

together with any appurtenances to the mobile home and the land subjacent or immediately contiguous to the home, which land is attributable to the home and is reasonably necessary for the purpose described in paragraph (a);

"affixed residential complex", subject to section 12 (2) [application of federal provision — combined supplies and additions], means a residential complex, within the meaning of Part IX of the federal Act, that is situated in British Columbia, except that, for the purposes of this definition, the definition of "residential complex" in section 123 (1) [definitions] of the federal Act is to be read as if

(a) the word "and" were added at the end of paragraph (c) of that definition, and

(b) paragraphs (d) and (e) of that definition were excluded and were replaced by the following paragraph:

(d) an affixed mobile home, ;

"Agency" has the same meaning as in Part IX of the federal Act;

"amount" has the same meaning as in Part IX of the federal Act;

"assessment" means an assessment under this Act and includes a reassessment under this Act;

"British Columbia" means the Province of British Columbia;

"builder" means a person who, in respect of an affixed residential complex or addition, is a builder, within the meaning of Part IX of the federal Act, of the complex or the addition, as the case may be;

"Commissioner" has the same meaning as in Part IX of the federal Act;

"completion percentage", in respect of an affixed residential complex or addition, means the extent, expressed as a percentage, to which the relevant construction or substantial renovation of the complex or addition, as the case may be, has been completed at a particular time;

"consideration",

(a) in respect of a grandparented taxable sale, means the consideration for the sale as the consideration would have been determined under Part IX of the federal Act and the federal regulations, as they read on November 18, 2009, and

(b) in respect of any other sale, subject to this Act, has the same meaning as in Part IX of the federal Act;

"court" means the Supreme Court of British Columbia;

"deputy head" means,

(a) if an administrative agreement does not apply, the deputy Provincial minister, or

(b) if an administrative agreement applies, the Commissioner;

"due date", in respect of a return that, under this Act or Part IX of the federal Act, as applicable, must be filed, means the date on or before which the return must be filed under the applicable Act;

"fair market value",

(a) in respect of an affixed residential complex that is the subject of a grandparented taxable sale, means the fair market value of the complex, as it would have been determined under Part IX of the federal Act and the federal regulations, as they read on November 18, 2009, and

(b) in any other case, has the same meaning as in Part IX of the federal Act;

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

"federal HST regulation" means the New Harmonized Value-added Tax System Regulations, No. 2 made under the federal Act;

"federal minister" means,

(a) in relation to section 37 (2) (a) [remittance], the Receiver General for Canada, and

(b) in relation to any other matter, a minister of the government of Canada who is responsible for the administration, enforcement or collection of tax paid or payable under Part IX of the federal Act;

"federal regulations" means regulations made under section 277 [regulations] of the federal Act;

"foreign supplier", in respect of a taxable sale, means a person

(a) who is the supplier in respect of the sale, and

(b) who, by reason of section 221 (2) (a) [non-resident supplier] of the federal Act, is not required to collect the tax payable under section 165 (1) [imposition of goods and services tax] of that Act in respect of the sale;

"grandparented taxable sale" means a taxable sale, of an affixed residential complex,

(a) that is made under a written agreement entered into on or before November 18, 2009, and

(b) in respect of which, by reason of section 51 (1) or (2), 52 (1) or (2) or 53 (1) or (2) [grandfathering and transitional tax] of the federal HST regulation, tax under section 165 (2) [tax in participating province] of the federal Act would not have been payable if the tax point in respect of the sale were immediately before April 1, 2013;

"minister" means,

(a) if an administrative agreement does not apply, the Provincial minister, or

(b) if an administrative agreement applies, the federal minister;

"ministry" means the ministry of the Provincial minister;

"Part IX transitional new housing rebate" means a rebate provided for in Division 4 [Transitional New Housing Rebates] of Part 9 of the federal HST regulation;

"person" has the same meaning as in section 123 (1) [definitions] of the federal Act;

"Provincial minister" means the member of the Executive Council who is responsible for the administration of this Act;

"recipient" means,

(a) in respect of a taxable sale, the person that is the recipient in respect of the sale for the purposes of Part IX of the federal Act, and

(b) in respect of a taxable self-supply, the person that is deemed under section 191 [self-supply] of the federal Act to have made and received the self-supply;

"relevant construction or substantial renovation", in respect of an affixed residential complex or addition, means,

(a) in the case of a complex that has been substantially renovated, the last substantial renovation of the complex, and

(b) in any other case, the construction of the complex or the addition, as the case may be;

"remittance amount", in respect of a reporting period of a person, means the total of all amounts, each of which amounts is

(a) an amount that

(i) was collected without having become collectible,

(ii) was deemed to have been collected, or

(iii) became collectible

by the person as, or on account of, tax under this Act during the reporting period, to the extent that the amount was not included under this paragraph in respect of any preceding reporting period of the person, or

(b) an amount of tax that became payable under this Act by the person during the reporting period in respect of a taxable sale, other than a grandparented taxable sale, made to the person by a foreign supplier;

"reporting entity", in respect of a taxable sale, means the person who is required to include the tax payable, collected or collectible under this Act in respect of the sale in the person's remittance amount for the reporting period of the person in which the tax becomes payable or collectible or is collected, as the case may be;

"sale" means a supply by way of sale within the meaning of Part IX of the federal Act and includes a supply by way of sale that is deemed under that Part to be made for the purposes of that Part, other than a self-supply;

"self-supply" means a supply of an affixed residential complex or of an addition that is deemed under section 191 [self-supply] of the federal Act to have been made and received;

"specified complex" means a specified residential complex or a specified single unit residential complex;

"specified residential complex" has the same meaning as in Division 4 [Transitional New Housing Rebates] of Part 9 of the federal HST regulation;

"specified single unit residential complex" has the same meaning as in Division 4 [Transitional New Housing Rebates] of Part 9 of the federal HST regulation;

"substantial renovation" has the same meaning as in Part IX of the federal Act, except that for the purposes of this definition, the reference to a residential complex in the definition of "substantial renovation" in section 123 (1) [definitions] of that Act is to be read as a reference to an affixed residential complex;

"supplier" means,

(a) in respect of a taxable sale, the person that is the supplier in respect of the sale for the purposes of Part IX of the federal Act, and

(b) in respect of a taxable self-supply, the person that is deemed under section 191 [self-supply] of the federal Act to have made and received the self-supply;

"supply" has the same meaning as in Part IX of the federal Act;

"tax point" means,

(a) in respect of a sale, subject to section 15 (2) (b) [non-arm's length sale], the earliest time at which any tax, under section 165 (1) [imposition of goods and services tax] of the federal Act, in respect of the sale becomes payable, and

(b) in respect of a self-supply, the time at which the supplier in respect of the self-supply is deemed under section 191 [self-supply] of the federal Act to have made and received the self-supply;

"taxable sale", subject to subsections (2) to (4), means a sale of an affixed residential complex, or of an interest in an affixed residential complex, by a builder of the complex or by a builder of an addition to the complex, if,

(a) for a sale of an affixed mobile home or of an interest in an affixed mobile home,

(i) tax is payable in respect of the sale under section 165 (1) [imposition of goods and services tax] of the federal Act,

(ii) the tax point in respect of the sale is after March 31, 2013 and before April 1, 2015,

(iii) in the case of an affixed mobile home that has been substantially renovated, the last substantial renovation was at least 10% completed before April 1, 2013,

(iv) at the tax point in respect of the sale, the affixed mobile home is affixed to the land to which it was affixed immediately before April 1, 2013, and

(v) the sale includes the land, or an interest in the land, to which the mobile home is affixed, or

(b) for a sale of any other affixed residential complex, or of an interest in any other affixed residential complex,

(i) tax is payable in respect of the sale under section 165 (1) [imposition of goods and services tax] of the federal Act,

(ii) the tax point in respect of the sale is after March 31, 2013 and before April 1, 2015,

(iii) the sale is not a sale in respect of which, by reason of section 51 (3) or (6), 52 (3) or (6) or 53 (3) or (6) [grandfathering and transitional tax] of the federal HST regulation, tax under section 165 (2) [tax in participating province] of the federal Act would not be payable if the tax point in respect of the sale were immediately before April 1, 2013, and

(iv) the relevant construction or substantial renovation in respect of the complex was at least 10% completed before April 1, 2013;

"taxable self-supply", subject to subsections (3) and (4), means a self-supply of an affixed residential complex or of an addition if,

(a) for a self-supply of an affixed mobile home,

(i) the tax point in respect of the self-supply is after March 31, 2013 and before April 1, 2015,

(ii) in the case of an affixed mobile home that has been substantially renovated, the last substantial renovation was at least 10% completed before April 1, 2013, and

(iii) at the tax point in respect of the self-supply, the mobile home is affixed to the land to which it was affixed immediately before April 1, 2013, or

(b) for a self-supply of any other affixed residential complex or of an addition,

(i) the tax point in respect of the self-supply is after March 31, 2013 and before April 1, 2015, and

(ii) the relevant construction or substantial renovation in respect of the complex or addition, as the case may be, was at least 10% completed before April 1, 2013.

(2) A sale of a particular interest, other than a combined interest referred to in section 14 [consideration for sale of combined interest], in an affixed residential complex is not a taxable sale if, at any time before the tax point in respect of the sale, tax was payable under this Act in respect of any prior taxable sale of the particular interest.

(3) A sale of an affixed residential complex, or a self-supply of an affixed residential complex or of an addition, is not a taxable sale or a taxable self-supply, as the case may be, if, at any time before the tax point in respect of the sale or self-supply, as the case may be, tax was payable under this Act in respect of any prior taxable sale or prior taxable self-supply of the complex or the addition, as the case may be.

(4) A sale or self-supply of a specified complex is not a taxable sale or a taxable self-supply, as the case may be, if all of the following conditions are met:

(a) the relevant construction or substantial renovation in respect of the complex was substantially completed before July 1, 2010;

(b) an application for a Part IX transitional new housing rebate, to which the applicant was entitled in respect of the complex, was not filed with the federal minister under section 256.21 (2) [application for rebate] of the federal Act before February 17, 2012;

(c) a form for an assignment of a Part IX transitional new housing rebate payable to a person in respect of the complex was not filed with the federal minister under section 256.21 (7) [form and manner of assignment of rebate] of the federal Act before February 17, 2012.

Definitions in Part IX of federal Act and federal regulations
and consistent application and interpretation

2  (1) For the purposes of this Act, unless a contrary intention appears in this Act or the regulations made under this Act, the definitions in Part IX of the federal Act or in the federal regulations apply.

(2) In any case of doubt, the provisions of this Act must be applied and interpreted in a manner consistent with similar provisions of Part IX of the federal Act.

References in applicable provisions of Part IX
of federal Act and federal regulations

3  (1) If a provision, referred to in this subsection as "that section", of Part IX of the federal Act, or of the federal regulations, is made applicable for the purposes of this Act, unless a contrary intention appears in this Act, that section, as amended from time to time before or after this subsection comes into force, applies with the changes the circumstances require for the purposes of this Act as though that section had been enacted as a provision of this Act, and in applying that section for the purposes of this Act, in addition to any other changes required by the circumstances, that section must be read as follows:

(a) a reference in that section to tax is to be read as a reference to tax under this Act;

(b) a reference in that section to net tax is to be read as a reference to a remittance amount under this Act;

(c) a reference in that section to section 225 [net tax] of the federal Act is to be read as a reference to the definition of "remittance amount" in section 1 (1) [definitions] of this Act;

(d) if that section contains a reference to a net tax refund, that section is to be read as if that reference were excluded;

(e) a reference in that section to a rebate is to be read as a reference to a rebate under this Act;

(f) a reference in that section to a penalty is to be read as a reference to a penalty under this Act;

(g) a reference in that section to a return is to be read as a reference to a return under this Act;

(h) a reference in that section to the value of the consideration for a supply is to be read as the value of the consideration for the purposes of this Act;

(i) a reference in that section to a residential complex is to be read as a reference to an affixed residential complex;

(j) a reference in that section to a mobile home is to be read as a reference to an affixed mobile home;

(k) a reference in that section to Part IX of the federal Act or to the federal regulations is to be read as including a reference to this Act or to a regulation made under this Act, as the case may be;

(l) a reference in that section to a provision of Part IX of the federal Act that is the same as, or similar to, a provision of this Act is to be read as a reference to the provision of this Act;

(m) a reference in that section to a provision of Part IX of the federal Act that applies for the purposes of this Act is to be read as a reference to the provision as it applies for the purposes of this Act;

(n) subject to subsections (2) and (3), a reference in that section to a word or expression set out in Column 1 of the following table is to be read as a reference to the word or expression set out opposite it in Column 2:

Table

(2) In applying any of the following provisions of the federal Act for the purposes of this Act, a reference in that provision of the federal Act to Canada is to continue to be read as a reference to Canada:

(a) section 278 (3) [place of payment];

(b) the definition of "official" in section 295 [keeping information confidential], as that definition is made applicable for the purposes of section 291 (2) [non-interference];

(c) section 320 (1) [moneys seized from tax debtor].

(3) If an administrative agreement applies, in applying any provision of Part IX of the federal Act or the federal regulations for the purposes of this Act, a reference in that provision

(a) to the Commissioner is to continue to be read as a reference to the Commissioner,

(b) to the Agency is to continue to be read as a reference to the Agency,

(c) to the Minister is to continue to be read as a reference to the Minister,

(d) to the Receiver General is to continue to be read as a reference to the Receiver General,

(e) to the Attorney General of Canada is to continue to be read as a reference to the Attorney General of Canada, and

(f) to the Deputy Attorney General of Canada is to continue to be read as a reference to the Deputy Attorney General of Canada.

Reference aids

4  In this Act, if a reference to a provision of the federal Act or the federal regulations is followed by italicized text in square brackets that is or purports to be descriptive of the subject matter of the provision, the text in square brackets

(a) is not part of this Act, and

(b) is to be considered to have been added editorially for convenience of reference only.

First nations goods and services tax

5  (1) In this section:

"administration agreement" means an administration agreement, within the meaning of FNGSTA, referred to in section 11 (2) or 12 (2) of that Act, as applicable;

"first nation law" means a first nation law within the meaning of section 11 (1) or 12 (1) of FNGSTA, as applicable;

"first nation tax" means a tax, imposed under a first nation law, that is

(a) referred to in section 4 (1) (a) of FNGSTA, or

(b) referred to in section 12 (2) of FNGSTA and is consistent with section 4 (1) (a) of that Act as provided for in section 12 (2) of that Act;

"FNGSTA" means the First Nations Goods and Services Tax Act (Canada).

(2) If a first nation law applies in respect of a matter to which this Act applies and an administration agreement has been entered into and applies in respect of the first nation law and that matter, this Act applies as if

(a) the first nation tax imposed under the first nation law were imposed under section 165 (1) [imposition of goods and services tax] of the federal Act, and

(b) a reference in this Act to Part IX of the federal Act, a federal regulation or a provision of that Part or of a federal regulation, in respect of that matter, included a reference to that Part, regulation or provision, as the case may be, as adopted by the first nation law.

Date of agreement

6  (1) In this section, "agreement" means a written agreement in respect of a sale of an affixed residential complex or of an interest in an affixed residential complex.

(2) Subject to subsection (3), for the purposes of this Act, the date on which an agreement is entered into is deemed to be the date on which the last party signs the agreement.

(3) If an agreement

(a) is amended by one or more agreements, or

(b) is replaced and the new agreement is in relation to the same affixed residential complex or the same interest in an affixed residential complex, as the case may be, that was the subject of the original agreement,

the date on which the agreement is entered into is deemed to be the date on which the last party signed the original agreement before its amendment or replacement.

Reporting period

7  The reporting period of a person under this Act at a particular time is the same as the reporting period of the person for the purposes of Part IX of the federal Act at the particular time.

Computation of amount

8  An amount that is payable or required to be remitted under this Act is to be computed to the nearest cent, with 1/2 cent counted as one cent.

Application of federal provisions — compound interest and negative amounts

9  Sections 124 and 125 of the federal Act apply for the purposes of this Act.

Application of federal provision — arm's length

10  Section 126 of the federal Act applies for the purposes of this Act.

Application of federal provision — transfer of security interest

11  Section 134 of the federal Act applies for the purposes of this Act.

Application of federal provision — combined supplies and additions

12  (1) Sections 136 (2) and (3) and 168 (8) of the federal Act apply for the purposes of this Act.

(2) If

(a) as a consequence of section 136 (3) of the federal Act, as made applicable by subsection (1) of this section, a provision of

(i) this Act or the regulations made under this Act, or

(ii) the federal Act or the federal regulations, as made applicable for the purposes of this Act,

applies in respect of an addition to an affixed residential complex as if the addition were a separate property from the remainder of the complex, and

(b) the addition would otherwise form part of the complex,

the addition is deemed to be a separate affixed residential complex for the purposes of this Act.

Value of consideration

13  Subject to sections 14 [consideration for sale of combined interest], 15 [non-arm's length sale] and 19 (2) [tax on grandparented taxable sale], for the purposes of this Act, the value of the consideration for a sale is the value of the consideration for the sale for the purposes of Part IX of the federal Act.

Consideration for sale of combined interest

14  If

(a) a supplier combines 2 or more fractional interests in a fee simple estate to make a sale of a single combined interest in the estate, and

(b) any of those fractional interests was the subject of a previous taxable sale in respect of which tax was payable under this Act, each of which interests is referred to in this section as a "previously taxed interest",

for the purposes of this Act, the consideration for the sale of the combined interest is deemed to be equal to the portion of the total consideration for that sale that is reasonably attributable to the portion of the combined interest that would remain if all of the previously taxed interests were excluded from the combined interest.

Non-arm's length sale

15  (1) For the purposes of this section, "applicable time", in respect of a sale of an affixed residential complex or of an interest in an affixed residential complex, means the earlier of the time at which

(a) ownership, or

(b) possession

of the complex or the interest, as the case may be, is transferred.

(2) If a sale of an affixed residential complex, or of an interest in an affixed residential complex, is made between persons not dealing with each other at arm's length and no consideration is paid in respect of the sale, the following applies:

(a) for the purposes of this Act, the sale is deemed to be made for consideration of a value equal to the fair market value of the complex or the interest, as the case may be, at the applicable time;

(b) if tax under section 165 (1) [imposition of goods and services tax] of the federal Act

(i) is not payable or not deemed under Part IX of that Act to have been collected for the purposes of that Part in respect of the sale, and

(ii) would be payable or deemed to have been collected in respect of the sale if consideration equal to the fair market value of the complex or interest, as the case may be, were paid or deemed under that Part to have been paid in respect of the sale,

for the purposes of this Act,

(iii) tax under section 165 (1) of the federal Act is deemed to be payable in respect of the sale, and

(iv) the tax point in respect of the sale is deemed to be the applicable time.

(3) If

(a) a sale of an affixed residential complex, or of an interest in an affixed residential complex, is made between persons not dealing with each other at arm's length,

(b) consideration is paid for the sale, and

(c) the value of the consideration is less than the fair market value, at the applicable time, of the complex or the interest, as the case may be,

the value of that consideration for the purposes of this Act is deemed to be equal to the fair market value of the complex or the interest, as the case may be, at the applicable time.

Appropriating property

16  If a person is deemed, under section 172 (2) [benefits to shareholders, etc.] of the federal Act, to have made a supply of property and to have collected tax under Part IX of that Act as a consequence of appropriating the property to or for the benefit of another person, for the purposes of this Act,

(a) the first person is deemed to have made a sale of the property to the other person, and

(b) tax under section 165 (1) [imposition of goods and services tax] of the federal Act is deemed to have become payable in respect of that sale at the time that the tax is deemed, under section 172 (2) of that Act, to have been collected by the first person in respect of the property.

Application of federal provision — conversion to residential use

17  Section 190 (1) of the federal Act applies for the purposes of this Act.

Application of federal provision — deemed construction
and completion of affixed mobile home

18  Section 190.1 of the federal Act applies for the purposes of this Act, except that, despite section 3 (1) (j) of this Act [references in applicable provisions of Part IX of federal Act and federal regulations], the reference to a mobile home in section 190.1 of the federal Act is to continue to be read as a reference to a mobile home within the meaning of Part IX of the federal Act.

Part 2 — Imposition of Tax

Tax on taxable sale

19  (1) A recipient of a taxable sale must pay to the government of British Columbia a tax in respect of the sale equal to 2% of the value of the consideration for the sale.

(2) For the purposes of subsection (1), the value of the consideration for a grandparented taxable sale is deemed to be equal to the value of the consideration for the sale, as otherwise determined for the purposes of this Act, divided by 1.02.

(3) The tax payable under subsection (1) in respect of a taxable sale becomes payable by the recipient of the sale at the tax point in respect of the sale.

(4) In the case of a grandparented taxable sale in respect of which tax under subsection (1) is payable by the recipient of the sale, that tax is deemed to have been paid by the recipient at the tax point in respect of the sale.

Tax on taxable self-supply

20  (1) A person who, under section 191 [self-supply] of the federal Act, is deemed to have made and received a taxable self-supply must pay to the government of British Columbia a tax in respect of the self-supply equal to 2% of the value on which is calculated the tax under Part IX of the federal Act that is deemed under section 191 of that Act to have been paid in respect of the self-supply.

(2) The tax payable by a person under subsection (1) in respect of a taxable self-supply is deemed to have been paid by the person as the recipient, and to have been collected by the person as the supplier, at the tax point in respect of the self-supply.

Part 3 — Rebates

BC transition rebate

21  (1) In this section and section 22:

"applicable incorporated materials" means,

(a) in the case of an addition that is the subject of a taxable self-supply, taxable materials incorporated after March 31, 2013 into the addition in the course of the construction of the addition,

(b) in the case of a substantial renovation of an affixed residential complex

(i) that is the subject of a taxable sale or taxable self-supply, or

(ii) a qualifying interest in which is the subject of a taxable sale or taxable self-supply,

taxable materials incorporated after March 31, 2013 into the complex in the course of the substantial renovation of the complex, or

(c) in any other case, taxable materials incorporated after March 31, 2013 into an affixed residential complex that is the subject of a taxable sale of the complex or of an interest in the complex, or that is the subject of a taxable self-supply, as the case may be, in the course of the construction of the complex;

"applicable percentage", in respect of

(a) an affixed residential complex that is the subject of a taxable sale, or an affixed residential complex, a qualifying interest in which is the subject of a taxable sale, or

(b) an affixed residential complex or addition that is the subject of a taxable self-supply,

means the percentage determined by the following formula:

"claimant" means a person described in subsection (3) (a), (b) or (c);

"provincial sales tax Act" means the Social Service Tax Act or the Provincial Sales Tax Act, as applicable;

"qualifying interest", in respect of an affixed residential complex, means any of the following:

(a) a fractional interest in a fee simple estate in the complex;

(b) in respect of a complex to which Part 12 of the Strata Property Act applies,

(i) the interest of a registered lessee under a ground lease in the complex, and

(ii) upon deposit of a leasehold strata plan under Part 12 of that Act, the interest of a leasehold tenant in the complex;

(c) a prescribed interest in the complex;

"rebate rate", in respect of an affixed residential complex or addition, means

(a) 1.5%, if the applicable percentage in respect of the complex or addition, as the case may be, is less than 25%,

(b) 1%, if the applicable percentage in respect of the complex or addition, as the case may be, is less than 50% but not less than 25%,

(c) 0.5%, if the applicable percentage in respect of the complex or addition, as the case may be, is less than 75% but not less than 50%,

(d) 0.2%, if the applicable percentage in respect of the complex or addition, as the case may be, is 90% or less but not less than 75%, and

(e) 0%, if the applicable percentage in respect of the complex or addition, as the case may be, is greater than 90%;

"taxable materials" means tangible personal property that is subject to tax under a provincial sales tax Act and is not exempt under that sales tax Act;

"total consideration", in respect of a taxable sale made by a supplier to a recipient of

(a) an affixed residential complex, or

(b) a qualifying interest in an affixed residential complex,

means, subject to subsection (2), the total of all amounts, each of which amounts is the value of the consideration for

(c) the taxable sale, or

(d) any other taxable sale by that supplier to that recipient of an interest in the applicable complex, except to the extent that the consideration is included in the calculation of total consideration in determining a rebate under this section in respect of any other taxable sale.

(2) For the purposes of the definition of "total consideration" in subsection (1), the value of the consideration for a grandparented taxable sale is deemed to be equal to the value of the consideration for the sale, as otherwise determined for the purposes of this Act, divided by 1.02.

(3) Subject to subsections (4) and (6), a person who is

(a) a supplier in respect of a taxable sale of

(i) an affixed residential complex, or

(ii) a qualifying interest in an affixed residential complex,

if tax was payable under this Act in respect of the sale,

(b) a supplier who is deemed to have paid and collected tax under this Act in respect of a taxable self-supply of

(i) an affixed residential complex, or

(ii) an addition to an affixed residential complex, or

(c) a person, in prescribed circumstances and subject to any prescribed conditions or limitations, prescribed by regulation

is entitled to a rebate in respect of the affixed residential complex, the qualifying interest in the affixed residential complex or the addition, as the case may be, in the amount determined in accordance with subsection (5).

(4) A claimant is not entitled to a rebate under subsection (3) in respect of the following:

(a) an affixed mobile home;

(b) a qualifying interest in an affixed mobile home.

(5) Subject to subsection (6), the amount of the rebate to which a claimant is entitled under subsection (3) in respect of an affixed residential complex, a qualifying interest in an affixed residential complex or an addition, as the case may be, is equal to the positive amount, if any, determined by the following formula:

rebate entitlement = (rebate rate x base amount) — Part IX transitional rebate

(6) A claimant is not entitled to a rebate under subsection (3) in respect of a taxable sale or taxable self-supply, as the case may be, unless all of the following requirements are met:

(a) in respect of all or substantially all of the applicable incorporated materials,

(i) tax under the applicable provincial sales tax Act has been paid, and

(ii) no person has obtained or is entitled to obtain a rebate, refund or remission of that tax by reason of the fact that the person is exempt from the payment of that tax by a law other than

(A) that provincial sales tax Act, or

(B) the regulations under that Act;

(b) if requested by the minister, the claimant provides to the minister, within the time specified by the minister, evidence satisfactory to the minister that the requirement in paragraph (a) of this subsection has been met;

(c) if the claimant, or an agent of the claimant referred to in section 33 [agent of supplier], is required to include tax payable under this Act in respect of the sale or self-supply, as the case may be, in determining a remittance amount of the claimant or agent for a reporting period,

(i) that tax has been included in a remittance amount of the claimant or agent, as the case may be, reported in a return filed as required under this Act, and the remittance amount, as reported in that return, has been remitted, and

(ii) the claimant, not later than the day that is 2 years after the due date for the return required to be filed for the reporting period in which the tax under this Act became payable in respect of the sale or self-supply, as the case may be, files with the minister an application for the rebate in the form and manner authorized by the minister and containing the information specified by the minister;

(d) if paragraph (c) of this subsection does not apply, the claimant, not later than the day that is 2 years after the day that includes the tax point in respect of the sale or self-supply, as the case may be, files with the minister an application for the rebate in the form and manner authorized by the minister and containing the information specified by the minister.

(7) If a claimant is entitled to a rebate under this section, the minister must pay the rebate to the claimant.

Regulations in relation to BC transition rebate

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

(a) deeming, for the purposes of section 21 [BC transition rebate], a sale of an affixed residential complex to be a taxable sale if

(i) the sale is a sale in respect of which, by reason of section 51 (3) or (6), 52 (3) or (6) or 53 (3) or (6) [grandfathering and transitional tax] of the federal HST regulation, tax under section 165 (2) [tax in participating province] of the federal Act would not be payable if the tax point in respect of the sale were immediately before April 1, 2013, and

(ii) the prescribed conditions or requirements are met;

(b) providing that, if a regulation is made under paragraph (a) of this subsection, a requirement in section 21 (6) (c) or (d) need not be met, in prescribed circumstances, in respect of the applicable sale;

(c) providing for the payment of a rebate under section 21 to a claimant who, in respect of a taxable sale or a taxable self-supply, complies with section 21 (6) (b) in respect of some but not all or substantially all of the applicable incorporated materials, including without limitation, regulations doing one or more of the following:

(i) permitting or requiring the payment of the rebate to a claimant;

(ii) providing a method for calculating the amount of the rebate;

(iii) establishing circumstances in which the rebate may or must be paid;

(iv) setting conditions of, or limitations on, the payment of the rebate.

Rebate of payment made in error

23  (1) Subject to subsection (2), section 261 (1) and (2) of the federal Act applies for the purposes of this Act.

(2) Despite section 16 [refunds] of the Financial Administration Act, a person is not entitled to a rebate under subsection (1) of this section in respect of an amount paid by the person, unless the person, on or before the day that is 2 years after the date on which the amount was paid by the person, files with the minister an application for the rebate in the form and manner authorized by the minister and containing the information specified by the minister.

Rebate in accordance with Nisga'a Nation Taxation Agreement

24  (1) In this section, "Taxation Agreement" means the Nisga'a Nation Taxation Agreement tabled in the Legislative Assembly on November 30, 1998, and includes any amendments to that agreement made in accordance with its terms.

(2) If the Taxation Agreement provides that a person is entitled to a rebate of tax paid by the person under this Act, on application and on receipt of evidence establishing that the person is so entitled, the minister must pay the rebate to that person.

Rebate in accordance with treaty first nation
tax treatment agreement

25  If a tax treatment agreement of a treaty first nation provides that a person is entitled to a rebate of tax paid by the person under this Act, on application and on receipt of evidence establishing that the person is so entitled, the minister must pay the rebate to that person.

Time limit for application

26  Despite section 16 [refunds] of the Financial Administration Act, a rebate under section 24 [rebate in accordance with Nisga'a Nation Taxation Agreement] or 25 [rebate in accordance with treaty first nation tax treatment agreement] must not be made on a claim for a rebate that is made more than 2 years after the date on which the amount claimed was paid.

Rebate time limits

27  Despite the Limitation Act, an action for a rebate under this Act of an amount paid under this Act must not be brought more than 2 years after the date on which the amount claimed was paid.

Application of federal provision — overpayments

28  Section 264 (1) of the federal Act applies for the purposes of this Act.

Part 4 — Information Requirements

Definitions

29  In this Part:

"agreement" means a written agreement between a vendor and a purchaser in respect of a qualifying sale;

"applicable document" means any of the following:

(a) an agreement referred to in section 30 (1) [information required to be provided];

(b) an addendum to an agreement referred to in section 30 (2);

(c) a statement of adjustments or other document referred to in section 30 (3);

"purchase price" means the total amount payable by a purchaser under an agreement in respect of the purchase of

(a) an affixed residential complex, or

(b) an interest in an affixed residential complex,

as provided in the agreement at a particular time;

"purchaser" means a person who, under an agreement, agrees to purchase, in a qualifying sale, an affixed residential complex or an interest in an affixed residential complex;

"qualifying sale" means a sale of an affixed residential complex, or of an interest in an affixed residential complex,

(a) by a builder of the complex or by a builder of an addition to the complex, and

(b) in respect of which sale

(i) tax is payable under section 165 (1) [imposition of goods and services tax] of the federal Act, or

(ii) if the recipient in respect of the sale is, under any law, exempt from the payment of tax under section 165 (1) of the federal Act, tax under that section would be payable in respect of the sale but for that exemption;

"vendor" means a person who, on the person's own behalf or as agent for and on behalf of another person, agrees under an agreement to sell in a qualifying sale an affixed residential complex, or an interest in an affixed residential complex.

Information required to be provided

30  (1) If an agreement is entered into on or after the date this section comes into force and before April 1, 2015, the vendor must ensure that the information specified in the regulations is included in the agreement, in accordance with the regulations, on the date the agreement is entered into.

(2) If

(a) an agreement was entered into on or after February 17, 2012 and before the date this section comes into force in respect of a qualifying sale of

(i) an affixed residential complex, or

(ii) an interest in an affixed residential complex, and

(b) neither ownership nor possession of the complex or interest, as the case may be, is transferred to the purchaser under the agreement on or before the prescribed date,

the vendor must ensure that the purchaser, on or before the prescribed date and in accordance with the regulations, is provided with a written addendum, to the agreement, that includes the information specified in the regulations.

(3) If

(a) the tax point in respect of a qualifying sale of

(i) an affixed residential complex, or

(ii) an interest in an affixed residential complex,

is after March 31, 2013 and before April 1, 2015, and

(b) the completion percentage in respect of the complex or interest, as the case may be, is, at any time before April 1, 2013, at least 10%,

the vendor must ensure that the information specified in the regulations is included in a statement of adjustments or other document provided to the purchaser, in accordance with the regulations, at or before the tax point in respect of the sale.

(4) If the vendor in respect of a qualifying sale has, under an agreement in respect of the sale, agreed on behalf of another person to sell an affixed residential complex, or an interest in an affixed residential complex, the vendor and the other person are jointly and severally liable for all the obligations of the vendor under this section in respect of the sale and all other obligations and liabilities of the vendor under this Act that arise upon or as a consequence of any failure to comply with this section.

Regulations in relation to information requirements

31  The Lieutenant Governor in Council may make regulations in relation to the information that must, under section 30 [information required to be provided], be included in an applicable document in respect of a qualifying sale, including, without limitation, regulations doing one or more of the following:

(a) specifying the information that must be included in an applicable document, in relation to

(i) the purchase price in respect of an affixed residential complex, or of an interest in an affixed residential complex, that is the subject of a qualifying sale,

(ii) tax that will or may be payable under this Act or under Part IX of the federal Act in respect of a qualifying sale,

(iii) any rebate that will or may be payable under this Act or under Part IX of the federal Act in respect of a qualifying sale,

(iv) the status of a supplier under this Act or Part IX of the federal Act, including whether or not the supplier is a foreign supplier under this Act,

(v) the completion percentage, at a specified time, of an affixed residential complex that is, or an interest in which is, the subject of a qualifying sale, and

(vi) any other matter dealt with in this Act;

(b) specifying a statement that must be included in an applicable document, in relation to any of the matters referred to in paragraph (a) (i) to (vi);

(c) specifying circumstances in which

(i) specified information must be included in an applicable document, or

(ii) specified information need not be included in an applicable document;

(d) specifying a date on or before which an addendum to an agreement referred to in section 30 (2) must be provided to a purchaser.

Part 5 — Collection and Remittance of Tax

Division 1 — Collection

Collection of tax by supplier as agent

32  (1) Subject to subsection (2), every supplier who makes a taxable sale must, as agent of the government of British Columbia, collect the tax payable by the recipient under this Act in respect of the sale.

(2) Subsection (1) does not apply in respect of a taxable sale made by a foreign supplier.

Agent of supplier

33  If a supplier, and another person who acts as agent of the supplier in making a taxable sale or in charging and collecting consideration and tax under Part IX of the federal Act in respect of a taxable sale, jointly make an election under section 177 (1.1) [election for agent to account for tax] of the federal Act and that election applies to the sale, for the purposes of this Act, other than section 36 [right of supplier to sue for tax remitted],

(a) any tax payable under this Act in respect of that sale is deemed to be collectible by the other person and not by the supplier,

(b) any amount collected by the other person on behalf of the supplier as or on account of tax payable under this Act in respect of that sale is deemed to be collected by the other person and not by the supplier, and

(c) the other person and the supplier are jointly and severally liable for

(i) all obligations of a supplier under this Act in respect of that sale, and

(ii) all obligations under this Act that arise upon or as a consequence of

(A) any failure to account for or pay as and when required under this Act all or any portion of a remittance amount of the other person that is reasonably attributable to the sale,

(B) the other person claiming, in a return of the other person, a prescribed rebate referred to in section 37 (4) [remittance] to which the supplier was not entitled or in excess of the amount to which the supplier was entitled in respect of the affixed residential complex, or of the interest in an affixed residential complex, that is the subject of the sale, or

(C) a failure to pay as and when required under this Act the amount of any underpayment of a remittance amount of the other person that is reasonably attributable to a claim referred to in clause (B).

Deemed collection in relation to grandparented taxable sale

34  If tax under this Act is payable in respect of a grandparented taxable sale, the tax is deemed to have been collected, at the tax point in respect of the sale,

(a) if section 33 [agent of supplier] applies, in respect of the sale, to the supplier and an agent of the supplier, by the agent, and

(b) in any other case, by the supplier.

Application of federal provisions — trust for amounts
collected and sale of accounts receivable

35  Sections 222 (1), (1.1), (3) and (4) and 222.1 of the federal Act apply for the purposes of this Act except that, in addition to any other necessary changes, section 222 (3) of the federal Act is to be read

(a) as if everything before the words "if at any time" were excluded and were replaced by the words "Despite any other provision of this Act (except subsection (4) of this section)", and

(b) without reference to the words "or withdrawn in the manner and at the time provided under this Part".

Right of supplier to sue for tax remitted

36  (1) If

(a) a supplier has made a taxable sale in respect of which the supplier was required to collect tax under this Act,

(b) the supplier has disclosed in writing, to the recipient, the amount of the tax payable under this Act in respect of the sale,

(c) the supplier, or another person who is the reporting entity in respect of the sale, has accounted for or remitted the tax payable under this Act by the recipient in respect of the sale as required by this Act, and

(d) the supplier has not collected the tax from the recipient,

the supplier may bring an action in a court of competent jurisdiction to recover the tax from the recipient as though it were a debt due by the recipient to the supplier.

(2) Section 224.1 [no action for collection of tax] of the federal Act applies for the purposes of this Act.

Division 2 — Remittance of Tax

Remittance

37  (1) A person who is required to file a return under section 38 [filing required] for a reporting period must, in the return, report the person's remittance amount for the reporting period.

(2) A person who has a remittance amount for a reporting period of the person must remit the remittance amount

(a) to the minister on or before the due date for the return for the reporting period, and

(b) in the form and manner authorized by the minister.

(3) Unless subsection (4) applies, if

(a) a person files, at a particular time, a return under section 38 in which the person reports a remittance amount for a reporting period of the person, and

(b) the person claims in the return, and in an application filed under this Act at the same time as the return is filed, a prescribed rebate under this Act that is payable to the person at the particular time,

the person is deemed to have remitted at that particular time on account of the person's remittance amount, and the minister is deemed to have paid at that particular time on account of the rebate, an amount equal to the lesser of the remittance amount and the amount of the rebate.

(4) If

(a) a reporting entity in respect of a taxable sale of

(i) an affixed residential complex, or

(ii) an interest in an affixed residential complex

files a return under section 38 in which the reporting entity reports a remittance amount for a reporting period of the reporting entity, and

(b) another person would, at the time that return is filed, be entitled to a prescribed rebate under this Act in respect of the sale of the complex or the interest, as the case may be, if the other person filed at that time an application for the rebate,

the following applies:

(c) the rebate may be claimed in that return if an application of the other person for the rebate is filed under this Act at the same time as the return is filed;

(d) if the rebate is claimed in the return in accordance with paragraph (c), the reporting entity is deemed to have remitted, at the time the return is filed, on account of the reporting entity's remittance amount reported in that return, and the minister is deemed to have paid at that time to the other person on account of the rebate, an amount equal to the lesser of the remittance amount and the amount of the rebate.

Division 3 — Returns

Filing required

38  (1) A person who has a remittance amount for a reporting period of the person must file with the minister a return for the reporting period.

(2) If an administrative agreement applies, with respect to a return of a person that must be filed under subsection (1),

(a) section 238 (4) [form and content] of the federal Act applies to the return, for the purposes of this Act, and

(b) the return must be filed in the same manner as it would be required to be filed under Part IX of the federal Act if it were a return of the person under that Part in respect of net tax within the meaning of that Part.

(3) If an administrative agreement does not apply, a return that must be filed under subsection (1) must

(a) be made in the form and filed in the manner authorized by the Provincial minister, and

(b) contain the information specified by the Provincial minister.

(4) The due date for a return that a person must file under subsection (1) for a reporting period of the person is the due date for the return that the person would be required to file under Division V [Collection and Remittance of Division II Tax] of Part IX of the federal Act for the reporting period if the remittance amount in respect of the person for the reporting period were an amount of net tax within the meaning of that Part that was required to be remitted by the person for the reporting period.

Part 6 — Miscellaneous

Application of federal provisions — trustees, receivers
and personal representatives

39  (1) The following sections of the federal Act apply for the purposes of this Act:

(a) subject to subsection (2) of this section, section 265 (1) (a) to (d), (f) to (k) and (2) [bankruptcies];

(b) section 266 [receivers];

(c) section 267 [estate of a deceased individual];

(d) section 267.1 [definitions];

(e) section 268 [transfer to inter vivos trust];

(f) section 269 [distribution by trust];

(g) section 270 [clearance certificates].

(2) In applying section 265 (1) (f) of the federal Act for the purposes of this Act, in addition to any other necessary changes, that provision is to be read as if everything in that provision following the words "activities of a separate person" were excluded.

Amalgamations

40  If 2 or more corporations are merged or amalgamated to form one corporation, referred to in this section as the "new corporation", in the circumstances in which section 271 [amalgamations] of the federal Act applies, the following rules apply for the purposes of this Act:

(a) the new corporation is deemed to be the same corporation as, and a continuation of each of, the predecessor corporations;

(b) the transfer of any property by a predecessor corporation to the new corporation as a consequence of the merger or amalgamation is deemed not to be a sale.

Winding-up

41  If, for any purpose under Part IX of the federal Act, section 272 (a) [winding-up] of that Act deems a corporation, referred to in this section as the "new corporation", to be the same corporation as, and a continuation of, another corporation that has been wound up, the following rules apply for the purposes of this Act:

(a) the new corporation is deemed to be the same corporation as, and a continuation of, the corporation that has been wound up;

(b) the transfer of any property by the corporation that has been wound up to the new corporation as a consequence of the winding-up is deemed not to be a sale.

Partnerships

42  (1) If, for the purposes of Part IX of the federal Act, section 272.1 (3) [supply to partnership] of that Act applies to a supply of property made at any time by a supplier who is, or agrees to become, a member of a partnership, for the purposes of this Act, the supply is deemed to have been made for consideration equal to the fair market value, at that time, of the property, determined as if the supplier were not a member of the partnership and were dealing at arm's length with the partnership.

(2) Section 272.1 (1), (2), (4), (5) and (6) [partnerships] of the federal Act applies for the purposes of this Act.

(3) If, for the purposes of Part IX of the federal Act, a partnership is deemed under section 272.1 (7) [continuation of predecessor partnership by new partnership] of that Act to be a continuation of, and the same person as, a predecessor partnership, within the meaning of that section, the partnership is deemed to be a continuation of, and the same person as, the predecessor partnership for the purposes of this Act.

Joint ventures

43  If section 273 (1) (a) [joint venture election] of the federal Act applies for the purposes of Part IX of that Act to an operator within the meaning of that section and to another person who has made, or is deemed under section 273 (2) [assignee of interest in joint venture] of that Act to have made, an election under that section jointly with the operator in respect of activities referred to in section 3 (1) (b) of the Joint Venture (GST/HST) Regulations made under the federal Act,

(a) section 273 (1) (a) of the federal Act applies to the operator and the other person for the purposes of this Act, and

(b) to the extent that the operator and the other person are, under section 273 (5) [joint and several liability] of the federal Act, jointly and severally liable for all obligations under Part IX of that Act that result from those activities, the operator and the other person are jointly and severally liable for all obligations under this Act that result from those activities.

Anti-avoidance

44  (1) In this section:

"federal regulation" means the New Harmonized Value-added Tax System Regulations made under the federal Act;

"transitional event" means the transition by British Columbia from the new harmonized value-added tax system within the meaning of Part IX of the federal Act.

(2) For the purposes of this section, if there is a reference to a series of transactions in section 274 [anti-avoidance] of the federal Act or in the federal regulation, as made applicable by this section, the reference is deemed to include any related transactions or events completed in contemplation of the series.

(3) Section 274 of the federal Act applies for the purposes of this Act.

(4) Section 37 of the federal regulation applies for the purposes of this Act, except that, in addition to any other necessary changes,

(a) a reference to a harmonization event in that section is to be read as a reference to a transitional event, and

(b) section 37 (1) of the federal regulation is to be read as if the definition of "person" were excluded and were replaced by the definition of "person" in section 123 (1) [definitions] of the federal Act.

(5) References in this Act to the federal regulations are deemed to include a reference to section 37 of the federal regulation.

Appropriation

45  The Provincial minister may pay from the consolidated revenue fund amounts required to be paid by the Provincial minister or the government of British Columbia for the purposes of this Act.

Part 7 — Administration and Enforcement

Division 1 — Administration

Application of federal provision — administration

46  (1) Section 275 (2) [officers and employees], (3) [delegation of powers] and (4) [administration of oaths] of the federal Act applies for the purposes of this Act.

(2) Subject to section 83 [administrative agreement], the Provincial minister is responsible for the administration and enforcement of this Act.

Designation of director and delegation

47  (1) The Provincial minister may designate as director for the administration of this Act a person who is appointed under the Public Service Act.

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

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

Delegation by deputy head

48  (1) The deputy head may, in writing, delegate any of the deputy head's powers or duties under this Act to the director designated under section 47 (1) [designation of director] or to any other officer of the ministry.

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

Application of federal provision — inquiry

49  Section 276 of the federal Act applies for the purposes of this Act.

Division 2 — Returns, Penalties and Interest

Application of federal provision — place of payment

50  Section 278 (2) and (3) of the federal Act applies for the purposes of this Act.

Application of federal provision — execution of documents

51  Section 279 of the federal Act applies for the purposes of this Act.

Application of federal provisions — returns

52  Sections 281 [extension for returns] and 282 [demand for return] of the federal Act apply for the purposes of this Act.

Application of federal provisions — interest and penalties

53  (1) The following sections of the federal Act apply for the purposes of this Act:

(a) section 280 (1), (4.1) and (7) [penalty and interest];

(b) section 280.1 [failure to file a return];

(c) section 280.2 [minimum interest and penalty];

(d) section 280.3 [dishonoured instruments];

(e) section 281.1 [waiving or cancelling interest and penalties];

(f) section 283 [failure to answer demand];

(g) section 284 [failure to provide information];

(h) section 285 [false statements or omissions];

(i) section 285.1 [penalties for third parties].

(2) If an administrative agreement applies, the federal minister may waive or cancel all or any portion of a penalty payable by a person under section 280.3, 283, 284 or 285.1 of the federal Act, as made applicable by subsection (1) of this section, if the person who is liable to the penalty is required to pay a penalty, in respect of the same failure, under section 280.3, 283, 284 or 285.1, as applicable, of the federal Act.

Application of federal provision — failure to file by electronic transmission

54  If an administrative agreement applies,

(a) section 280.11 of the federal Act applies for the purposes of this Act, and

(b) the federal minister may waive or cancel all or any portion of a penalty payable by a person under section 280.11 of the federal Act, as made applicable by paragraph (a) of this section, if the person who is liable to the penalty is required to pay a penalty, in respect of the same failure, under section 280.11 of the federal Act.

Application of federal provision — failure to provide information

55  If an administrative agreement applies,

(a) section 284.01 of the federal Act applies for the purposes of this Act, and

(b) the federal minister may waive or cancel all or any portion of a penalty payable by a person under section 284.01 of the federal Act, as made applicable by paragraph (a) of this section, if the person who is liable to the penalty is required to pay a penalty, in respect of the same failure, under section 284.01 of the federal Act.

Penalty — failure to comply with information requirements

56  (1) In this section, "qualifying sale" has the same meaning as in section 29 [definitions for Part 4].

(2) Unless subsection (3) applies, a person who fails to comply, in respect of a qualifying sale, with section 30 [information required to be provided] in respect of any regulation made under section 31 [regulations in relation to information requirements] is liable to a penalty in an amount not exceeding the lesser of the following amounts:

(a) 1% of the value of the consideration for the sale;

(b) $10 000.

(3) A person who knowingly, or under circumstances amounting to gross negligence, fails to comply, in respect of a qualifying sale, with section 30 in respect of any regulation made under section 31, is liable to a penalty not exceeding the lesser of the following amounts:

(a) 4% of the value of the consideration for the sale;

(b) $40 000.

(4) Despite subsections (2) and (3), if

(a) the minister assesses a penalty against a person for

(i) failing to comply, in respect of a qualifying sale, with section 30 in respect of a specified provision of the regulations under section 31, or

(ii) failing to comply, in respect of a qualifying sale, with section 30 in a specified manner in respect of a specified provision of the regulations under section 31, and

(b) the Lieutenant Governor in Council has prescribed the amount of the penalty to which a person is liable for a failure described in paragraph (a) (i) or (ii),

the minister must assess that amount against the person.

(5) Despite subsections (2), (3) and (4), if a person is liable to more than one penalty under this section in respect of a single qualifying sale, the sum of the penalties assessed against the person under this section may not exceed the limit established by subsection (2) or (3), as applicable.

(6) If a person is liable to a penalty under this section, the person is not liable to a penalty in respect of the same failure under any provision of Part IX of the federal Act that is made applicable by section 53 [application of federal provisions — interest and penalties] of this Act.

(7) The minister may waive or cancel all or any portion of a penalty payable by a person under subsection (2), (3) or (4), but only during the 2-year period immediately following the date on which the penalty is assessed.

(8) The Lieutenant Governor in Council may make regulations, for the purposes of subsection (4), establishing the amount of the penalty that must be assessed against a person for a failure to comply with section 30 [information required to be provided], and may establish different amounts for failures to comply with different provisions or for failing to comply with a provision in different manners.

(9) The amount of a penalty prescribed under subsection (8) may not exceed the limit established by subsection (2) or (3), as applicable, for the failure to comply.

Division 3 — General

Books and records

57  (1) A person who has liabilities or obligations, or applies for a rebate, under this Act must keep records

(a) in British Columbia, or at another place authorized by the minister, on terms and conditions the minister may specify in writing, and

(b) in the form and containing information that will enable the determination of the person's liabilities and obligations under this Act or the amount of any rebate to which the person is entitled under this Act.

(2) Section 286 (2) to (6) of the federal Act applies for the purposes of this Act.

Application of federal provisions — inspections, documents,
warrants and privilege

58  (1) The following sections of the federal Act apply for the purposes of this Act:

(a) section 287 [definitions];

(b) section 288 [inspections];

(c) subject to subsection (2) of this section, section 289 [requirement to provide documents or information];

(d) section 289.1 [compliance order];

(e) section 290 [search warrant];

(f) section 291 [copies and non-interference];

(g) section 293 [solicitor-client privilege].

(2) In applying section 289 (1) of the federal Act for the purposes of this Act, in addition to any other necessary changes, that provision is to be read as if the reference to a listed international agreement were excluded.

Confidentiality and information-sharing agreements

59  (1) Section 64 [communication of information and related offences] of the Income Tax Act (British Columbia) applies for the purposes of this Act, except that, in addition to any other necessary changes,

(a) section 64 of the Income Tax Act (British Columbia) is to be read without reference to a designated person,

(b) the definition of "official" in section 64 (1) of the Income Tax Act (British Columbia) is to be read as if everything in that definition after paragraph (b) were excluded,

(c) the reference in section 64 (4) of the Income Tax Act (British Columbia) to section 241 (3) of the Income Tax Act (Canada) is to be read as a reference to section 295 (4) of the federal Act,

(d) the words "any refund or tax credit" in section 64 (5) (b) (ii) of the Income Tax Act (British Columbia) are to be read as "any rebate",

(e) section 64 (5) (c) of the Income Tax Act (British Columbia) is to be read without reference to subparagraph (iii.2) of that provision,

(f) the reference in section 64 (7) of the Income Tax Act (British Columbia) to section 241 (3.1), (4.1) and (5) of the Income Tax Act (Canada) is to be read as a reference to section 295 (4.1), (5.1) and (6) of the federal Act, and

(g) the reference in section 64 (9) (b) of the Income Tax Act (British Columbia) to section 241 (4.1) of the Income Tax Act (Canada) is to be read as a reference to section 295 (5.1) of the federal Act.

(2) Section 65 [information-sharing agreements] of the Income Tax Act (British Columbia) applies for the purposes of this Act, except that, in addition to any other necessary changes,

(a) the definition of "information-sharing agreement" in section 65 (1) of that Act is to be read without reference to paragraph (b) of that definition, and

(b) section 65 (3.1) (a) of that Act is to be read as if the words "or for the purpose of administering and enforcing the International Financial Business (Tax Refund) Act, the International Business Activity Act or Part 11.1 of the Forest Act" were excluded.

(3) For the purposes of subsections (1) and (2) of this section,

(a) a reference to a taxpayer in section 64 of the Income Tax Act (British Columbia) is to be read as a reference to a person, and

(b) a reference in section 64 or 65 of that Act to a collection agreement, or to an agreement entered into under section 69 of that Act, is to be read as a reference to an administrative agreement.

Access to records

60  The British Columbia Assessment Authority and the Registrar of Titles must provide to the minister assistance and access to their records.

Disclosure to British Columbia Assessment Authority

61  A person who has custody or control over information or records under this Act may disclose that information or those records to the British Columbia Assessment Authority.

Division 4 — Assessments, Objections and Appeals

Assessments of tax, interest and penalties

62  The minister may assess

(a) the remittance amount of a person for a reporting period of the person,

(b) any tax payable by a person under this Act,

(c) any penalty or interest payable by a person under this Act, and

(d) any other amount that a person is liable to pay or remit under this Act,

and may reassess or make an additional assessment of any remittance amount, any tax, any penalty, any interest or any other amount referred to in paragraph (d).

Assessments of rebates or interest

63  (1) On receipt of an application made by a person for a rebate under this Act, the minister must, with all due dispatch, consider the application and assess the amount of the rebate, if any, payable to the person.

(2) The minister may reassess or make an additional assessment of the amount of a rebate, despite any previous assessment of the amount of the rebate.

(3) The minister may assess, reassess or make an additional assessment of an amount payable by a person under section 28 [application of federal provision — overpayments], despite any previous assessment of the amount.

(4) If, on assessment under this section, the minister determines that a rebate is payable to a person under this Act, the minister must pay the rebate to the person.

Application of federal provision — interest on rebate

64  Section 297 (4) of the federal Act applies for the purposes of this Act.

Limitation period for assessment

65  (1) Subject to section 298 (3) to (6.1) [period for assessment] of the federal Act, as made applicable by section 67 [application of federal provisions — assessments] of this Act, an assessment of a person must not be made under section 62 [assessments of tax, interest and penalties] in the following circumstances:

(a) in the case of an assessment of the remittance amount of the person for a reporting period of the person, more than 4 years after the later of

(i) the due date for the return required to be filed under section 38 [filing required] for the reporting period, and

(ii) the date the return was filed;

(b) in the case of an assessment of tax payable by the person under this Act, which tax is not included in the remittance amount of the person for any reporting period, more than 4 years after the date on which the tax became payable;

(c) in the case of a penalty payable by the person, other than

(i) a penalty under section 280.1 [failure to file a return], 285 [false statements or omissions] or 285.1 [penalties for third parties] of the federal Act, as made applicable by section 53 [application of federal provisions — interest and penalties] of this Act, or

(ii) a penalty under section 56 [penalty — failure to comply with information requirements] of this Act,

more than 4 years after the date on which the person became liable to pay the penalty;

(d) in the case of a penalty payable by the person under section 56 [penalty — failure to comply with information requirements], more than 6 years after the date on which the person became liable to pay the penalty;

(e) in the case of an assessment of an amount for which a trustee in bankruptcy became liable under section 39 [application of federal provisions — trustees, receivers and personal representatives], after the earlier of

(i) the day that is 90 days after the return under section 38 [filing required] on which the assessment is based is filed with, or other evidence of the facts on which the assessment is based comes to the attention of, the minister, and

(ii) the expiration of the period determined under whichever of paragraphs (a) to (d) of this subsection applies in the circumstances;

(f) in any other case of an assessment of an amount, other than an amount of interest or a penalty, that the person became liable to pay under this Act, more than 4 years after the date on which the person became liable to pay the amount.

(2) Subject to section 298 (3) to (6.1) [period of assessment] of the federal Act, as made applicable by section 67 [application of federal provisions — assessments] of this Act, an assessment under section 63 (1) [assessment of rebates or interest] of the amount of a rebate under this Act may be made at any time, but a reassessment or additional assessment under section 63 (2) or an assessment under section 63 (3) in respect of an amount paid or applied as a rebate, or of an amount paid or applied as interest in respect of an amount paid or applied as a rebate, must not be made more than 4 years after the date the application for the rebate was filed in accordance with this Act.

Regulations in relation to unclaimed rebate

66  The Lieutenant Governor in Council may make regulations providing for the application of any or all of section 296 (2.1), (3), (3.1), (4.1), (5), (6), (6.1), (7) and (8) [assessment] of the federal Act for the purposes of this Act including, without limitation, regulations doing one or more of the following:

(a) providing that, in applying a provision, in addition to any necessary changes, that provision is to be read with specified changes;

(b) limiting the application of that provision to a specified rebate;

(c) specifying circumstances in which that provision applies;

(d) setting conditions of, or limitations on, the application of that provision.

Application of federal provisions — assessments

67  The following sections of the federal Act apply for the purposes of this Act:

(a) section 297.1 [minimum amounts owed to Her Majesty];

(b) section 298 (3) to (8) [period for assessment];

(c) section 299 [general rules in respect of assessments].

Notice of assessment

68  (1) After making an assessment, the minister must send to the person assessed a notice of the assessment.

(2) A notice of assessment may include assessments in respect of any number or combination of reporting periods, transactions, rebates or amounts payable or required to be remitted under this Act.

(3) If an administrative agreement applies, a notice of assessment sent to a person under this section may be combined with, or form part of, a notice of assessment sent to the person under section 300 [notice of assessment] of the federal Act.

Application of federal provisions — objections to assessments
and extensions of time

69  The following sections of the federal Act apply for the purposes of this Act:

(a) section 301 (1), (1.1), (1.2) and (1.3) to (5) [objections];

(b) section 303 [extension of time to object by Minister];

(c) section 304 [extension of time to object by court].

Appeals

70  (1) The following sections of the federal Act apply for the purposes of this Act:

(a) section 302 [appeal of reassessment directly to court];

(b) section 305 [extension of time to appeal];

(c) section 306 [appeal];

(d) section 306.1 [limitation on appeals].

(2) Any appeal to the court must be instituted by a person

(a) serving on the minister a notice of appeal in duplicate in the form authorized by the minister, and

(b) filing a copy of the notice of appeal with the registrar of the court.

(3) A notice of appeal referred to in subsection (2) must be served on the minister by sending it by registered mail addressed to the deputy head.

(4) The appellant must set out in the notice of appeal a statement of the allegations of fact, the statutory provisions and the reasons that the person intends to submit in support of his or her appeal.

(5) The appellant must pay the court registry the prescribed fee on filing the copy of the notice of appeal.

Reply

71  (1) The minister must, within 60 days from the date the notice of appeal is received, or within a further time as the court, either before or after the expiration of that time, may allow, serve on the appellant and file in the court a reply to the notice of appeal admitting or denying the facts alleged and containing a statement of the further allegations of fact and of the statutory provisions and reasons on which the minister intends to rely.

(2) The court may strike out a notice of appeal or any part of it for failure to comply with section 70 (4) [appeals], and may permit an amendment to be made to a notice of appeal or a new notice of appeal to be substituted for the one struck out.

(3) The court may

(a) strike out any part of a reply for failure to comply with this section or permit the amendment of a reply, and

(b) strike out a reply for failure to comply with this section and order a new reply to be filed within a time to be set by the order.

(4) If a notice of appeal is struck out for failure to comply with section 70 (4) and a new notice of appeal is not filed as and when permitted by the court, the court may dispose of the appeal by dismissing it.

(5) If a reply is not filed as required under this section or is struck out under this section and a new reply is not filed as ordered by the court within the time ordered, the court may dispose of the appeal without notice to any party or after a hearing on the basis that the allegations of fact in the notice of appeal are true.

Procedure

72  (1) On the filing of the material referred to in sections 70 [appeals] and 71 [reply], the matter is deemed to be an action in the court and, unless the court otherwise orders, to be ready for hearing.

(2) Any fact or statutory provision not set out in the notice of appeal or reply may be pleaded or referred to in the manner and on the terms the court directs.

Court practice

73  (1) Except as provided in the regulations, the practice and procedure of the court apply to each matter deemed to be an action under section 72 [procedure].

(2) A judgment or order made in the action may be enforced as a judgment or order made in an action in the court.

Application of federal provisions — disposition of appeal and references

74  Sections 309, 310 and 311 of the federal Act apply for the purposes of this Act.

Application of federal provision — statutory recovery rights only

75  Section 312 of the federal Act applies for the purposes of this Act, except that, in addition to any other necessary changes, that section is to be read as if the only Act referred to in that subsection were this Act.

Division 5 — Collection

Application of federal provisions — collection

76  The following sections of the federal Act apply for the purposes of this Act:

(a) section 313 (1) to (2.6), (3) and (4) [debts to Her Majesty, court proceedings, limitation period, interest and costs];

(b) section 314 [security];

(c) section 315 [assessment before collection and postponement of collection];

(d) section 316 (1) to (10) and (11) [certificates, memorials and sales];

(e) section 317 [garnishment];

(f) section 318 [recovery by deduction or set-off];

(g) section 319 [acquisition of debtor's property];

(h) section 320 [moneys seized from tax debtor];

(i) section 321 [seizure of chattels];

(j) section 322 [person leaving jurisdiction];

(k) section 322.1 [jeopardy collection orders].

Application of federal provisions — directors' liability, unincorporated bodies
and non-arm's length transfers

77  The following sections of the federal Act apply for the purposes of this Act:

(a) section 323 [liability of directors];

(b) section 324 [compliance by unincorporated bodies];

(c) section 325 [tax liability in respect of transfers not at arm's length].

Division 6 — Offences

Application of federal provisions — offences

78  The following sections of the federal Act apply for the purposes of this Act:

(a) section 326 [offences — failure to file return, compliance orders, etc.];

(b) section 327 (1), (3) and (4) [offences — false statements, tax evasion and false claims];

(c) section 329 (1) [failure to pay, collect or remit taxes];

(d) section 330 [officers of corporations, etc.];

(e) section 331 [minimum sentence];

(f) section 332 [information or complaint for offence and limitation period].

Offence — confidentiality

79  Despite section 64 (11) of the Income Tax Act (British Columbia), as made applicable by section 59 (1) [confidentiality] of this Act, a person who commits an offence described in section 64 (9) or (10) of the Income Tax Act (British Columbia), as made applicable by section 59 (1) of this Act, is liable to a fine of not more than $2 000.

Powers of federal minister

80  If an administrative agreement applies and proceedings under section 326, 327, 328, 329 or 330 [various offences] of the federal Act are taken against any person, the federal minister may take or refrain from taking against the person any action contemplated by section 78 [application of federal provisions — offences] or 79 [offence — confidentiality] of this Act or under section 5 of the Offence Act.

Division 7 — Evidence and Procedure

Application of federal provisions — evidence and procedural rules

81  The following sections of the federal Act apply for the purposes of this Act:

(a) section 333 [service];

(b) section 334 [sending by mail];

(c) section 335 (1) to (12), (13) and (14) [evidence and procedure];

(d) section 335 (12.1) [proof of return], if an administrative agreement applies.

Judicial notice

82  Judicial notice must be taken, without being specially pleaded or proved, of

(a) all orders or regulations made under this Act or made applicable for the purposes of this Act, and

(b) an administrative agreement entered into under this Act.

Part 8 — Administrative Agreement

Administrative agreement

83  (1) The Provincial minister, with the approval of the Lieutenant Governor in Council, may, on behalf of the government of British Columbia, enter into an administrative agreement with the government of Canada respecting the administration and enforcement of all or part of this Act, the regulations made under this Act and the federal regulations made applicable for the purposes of this Act.

(2) Without limiting subsection (1), an administrative agreement may provide

(a) that the government of Canada will, in accordance with the administrative agreement,

(i) on behalf of the government of British Columbia,

(A) collect tax, interest and penalties payable under this Act, and

(B) pay rebates that are payable under this Act, and

(ii) pay amounts to the government of British Columbia, and

(b) that the government of British Columbia will pay to the government of Canada fees or other amounts in accordance with the administrative agreement.

(3) If an administrative agreement is entered into, the federal minister, on behalf of or as agent for the Provincial minister, is authorized to exercise all the powers, perform all the duties and exercise any discretion of the Provincial minister or deputy Provincial minister under this Act, including the discretion to refuse to permit the production, in judicial or other proceedings in British Columbia, of any document that is not, in the opinion of the federal minister, in the interests of public policy to produce.

(4) If an administrative agreement is entered into, the Commissioner may

(a) exercise any of the powers, perform any of the duties or exercise any discretion of the federal minister under subsection (3) or otherwise under this Act, and

(b) designate officers of the Agency to exercise powers and perform duties similar to those that are exercised or performed by those officers on the Commissioner's behalf under Part IX of the federal Act.

(5) Despite subsection (3), the federal minister is not authorized to exercise or perform a power, duty or discretion of the Provincial minister

(a) respecting an information-sharing agreement under section 59 [confidentiality and information-sharing agreements], or

(b) prescribed for the purposes of this subsection.

Payments on account

84  (1) In this section, "prescribed Act" means an Act of British Columbia or Canada, part or all of which Act is prescribed for the purposes of this section.

(2) An administrative agreement may provide that if a payment is received by the Receiver General on account of an amount that is payable or required to be remitted by a person under this Act or a prescribed Act, the payment received may be applied by the federal minister toward an amount that is payable or required to be remitted by the person under this Act or any prescribed Act, in the manner specified in the agreement, even though that person directed that the payment be applied in any other manner or made no direction for its application.

(3) A payment or part of a payment applied by the federal minister under an administrative agreement toward an amount that is payable or required to be remitted by a person under this Act

(a) relieves the person of liability to pay the applicable amount to the extent of the payment, and

(b) is deemed to have been applied in accordance with a direction made by that person.

Regulations in relation to administrative agreement

85  The Lieutenant Governor in Council may make regulations giving effect to a provision of an administrative agreement.

Part 9 — Regulations

General regulation-making authority

86  (1) The Lieutenant Governor in Council may make regulations referred to in section 41 of the Interpretation Act.

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

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

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

(a) delegate a matter to a person;

(b) confer a discretion on a person;

(c) make different regulations for different persons, property, rebates, places, things, circumstances, uses or transactions, or for different classes of persons, property, rebates, places, things, circumstances, uses or transactions;

(d) establish or define classes of persons, property, rebates, places, things, circumstances, uses or transactions.

(5) A regulation made under this Act may be made retroactive to the date this section comes into force or a later date, and if made retroactive is deemed to have come into force on the specified date.

Application of federal regulations

87  (1) Except to the extent that the federal regulations are inconsistent with this Act or any regulations made under this Act or are expressed by any regulation made under this Act to be inapplicable, the federal regulations apply, with the necessary changes and so far as applicable, for the purposes of this Act with respect to all matters referred to in section 277 (1) [regulations] of the federal Act.

(2) The Lieutenant Governor in Council may make regulations that provide for the circumstances in which and the extent to which, in any case of doubt, the federal regulations apply.

Application of regulations under section 277.1 of federal Act

88  The Lieutenant Governor in Council may make regulations providing for the application of a regulation made under section 277.1 [HST regulations] of the federal Act for the purposes of this Act including, without limitation, regulations doing one or more of the following:

(a) providing that, in applying a regulation, in addition to any necessary changes, that regulation is to be read with specified changes;

(b) specifying circumstances in which that regulation applies;

(c) setting conditions of, or limitations on, the application of that regulation;

(d) providing that one or more references in this Act to the federal regulations is deemed to include a reference to the applicable regulation under section 277.1 of the federal Act.

Regulations specifying changes

89  The Lieutenant Governor in Council may make regulations in respect of a provision of Part IX of the federal Act or of a provision of the federal regulations that is made applicable for the purposes of this Act including, without limitation, regulations doing one or more of the following:

(a) providing that, in applying a provision, in addition to any necessary changes, or changes provided for in this Act, that provision is to be read with specified changes;

(b) specifying circumstances in which that provision applies;

(c) setting conditions of, or limitations on, the application of that provision.

Regulations in relation to exemptions

90  Despite any other provision of this Act, the Lieutenant Governor in Council may make regulations providing for exemptions from one or more provisions of this Act, from a regulation made under this Act, or from a federal regulation made applicable for the purposes of this Act including, without limitation, regulations doing one or more of the following:

(a) exempting a person from a requirement to collect, remit or pay all or a portion of tax under this Act;

(b) exempting any transaction or property from taxation under this Act;

(c) exempting a person from the requirement to pay interest or a penalty under this Act;

(d) establishing circumstances in which an exemption applies;

(e) setting conditions of, or limitations on, the application of an exemption.

Regulations in relation to rebates

91  The Lieutenant Governor in Council may make regulations providing for a rebate of all or a portion of an amount paid or remitted under this Act, including, without limitation, regulations doing one or more of the following:

(a) permitting or requiring the payment of a rebate to a person;

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

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

Regulations defining word or expression

92  The Lieutenant Governor in Council may make regulations defining for the purposes of this Act any word or expression used but not defined in this Act.

Transition — regulations

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

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

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

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

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

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

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

(4) This section and any regulations made under this section that are still in force on March 31, 2015 are repealed on April 1, 2015.

Commencement

94  This Act comes into force by regulation of the Lieutenant Governor in Council.