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

Part 1 — Non-Tax Budget Measures

Public Sector Pension Plans Act

1 The Public Sector Pension Plans Act, S.B.C. 1999, c. 44, is amended by repealing the heading to Part 4 and substituting the following:

Part 4 — General Provisions .

2 The following section is added to Part 4:

Appropriation for unfunded pension plan liability

25.1  (1) If an actuarial valuation discloses that a pension plan has an unfunded liability, the Minister of Finance may, in accordance with generally accepted accounting principles, allocate an expense to the consolidated revenue fund to amortize the portion of the unfunded liability that is attributable to the government.

(2) Subsection (1) applies despite section 21 (3) of the Financial Administration Act.

(3) Expenses may be allocated under subsection (1) without an appropriation other than that subsection.

Public Service Benefit Plan Act

3 Section 6 of the Public Service Benefit Plan Act, R.S.B.C. 1996, c. 386, is amended adding the following subsection:

(2.1) The Minister of Finance may make payments from the consolidated revenue fund to address in whole or in part any decrease in the actuarial value of the Long Term Disability Fund.

Non-Tax Budget Measures — Validation and Other Provisions

Clean Energy Act — First Nations Clean Energy Business Fund

4  The balance of the First Nations Clean Energy Business Fund special account, established under section 20 of the Clean Energy Act, is increased, in addition to any increases under subsection (4) of that section, by $1 000 000.

Validation — Gwaii Forest Charitable Trust

5  (1) In this section:

"Gwaii Forest Charitable Trust" means the trust governed by the trust deed;

"trust deed" means the deed of trust, dated March 29, 2007, between the Gwaii Trust Society, a society incorporated under the Society Act, as settlor, the Gwaii Trust Society, Warren Foster and Brad Setso as trustees and KPMG Inc. as protector.

(2) Despite any enactment or law to the contrary, the Gwaii Forest Charitable Trust is conclusively deemed to be a valid charitable trust, effective March 29, 2007.

(3) Despite any enactment or law to the contrary, all of the purposes referred to in the definitions of "Purposes" and "SMFRA Purposes" in section 2 of the trust deed are, subject to subsection (4) of this section, conclusively deemed to be charitable purposes.

(4) Subsection (3) applies only in respect of

(a) the Gwaii Forest Charitable Trust,

(b) the trust deed, and

(c) the application of an enactment or law to the Gwaii Forest Charitable Trust or the trust deed.

(5) All things done in relation to the Gwaii Forest Charitable Trust between March 29, 2007 and the date this section comes into force that would have been validly done had this section been in force on the date they were done are conclusively deemed to have been validly done.

(6) This section is retroactive to the extent necessary to give full force and effect to its provisions and must not be construed as lacking retroactive effect in relation to any matter because it makes no specific reference to that matter.

Part 2 — Tax-Related Budget Measures

Carbon Tax Act

6 Section 16 of the Carbon Tax Act, S.B.C. 2008, c. 40, is amended by adding the following subsections:

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

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

7 Section 17 is amended by adding the following subsections:

(4) If a wholesale dealer buys fuel from a vendor whose appointment as a collector for the fuel is effective in accordance with section 16 (2.3), the appointment of the wholesale dealer as a deputy collector under subsection (1) (a) of this section is deemed to have been made at the time the wholesale dealer bought that fuel.

(5) If a wholesale dealer buys fuel from a deputy collector whose appointment as a deputy collector under subsection (1) (a) is effective in accordance with subsection (4), the appointment of the wholesale dealer as a deputy collector under subsection (1) (b) is deemed to have been made at the time the wholesale dealer bought the fuel.

8 The following section is added:

Relief of obligations to extent tax remitted

26.1  If a vendor's appointment as a collector for a fuel is effective in accordance with section 16 (2.3) and the collector sold, within British Columbia, the fuel within the period beginning on the date the appointment was effective in accordance with section 16 (2.3) and ending on the date the appointment was made by the director, the following apply in respect of that fuel:

(a) the collector or a deputy collector is relieved of any obligation under section 26 (1) to collect tax on the fuel to the extent that the tax on that fuel has been remitted to the government;

(b) a deputy collector is relieved of any obligation under section 26 (2) to remit tax on the fuel to the extent that the tax on that fuel has been remitted to the government;

(c) a retail dealer is relieved of any obligation under section 26 (3) to remit the tax on the fuel to the extent that the tax on that fuel has been remitted to the government;

(d) a retail dealer or deputy collector is relieved of any obligation under section 26 (4) to remit the tax collected on the fuel to the extent that the tax on that fuel has been remitted to the government;

(e) the collector is relieved of any obligation under section 30 (1) to pay security with respect to that fuel to the extent that the tax on that fuel has been remitted to the government;

(f) a deputy collector is relieved of any obligation under section 31 (1) to pay security with respect to that fuel to the extent that the tax on that fuel has been remitted to the government;

(g) a retail dealer is relieved of any obligation under section 32 (1) to pay security with respect to that fuel to the extent that the tax on that fuel has been remitted to the government.

9 Section 45 is amended by adding the following subsections:

(1.1) Subsection (1) does not apply in relation to security not paid under this Act to the extent that the director is satisfied that the person to whom the fuel was sold would be entitled to a refund of tax or security under this Act.

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

10 Section 46 (2) is repealed and the following substituted:

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

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

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

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

(a) if the person is assessed for failing to pay security under section 45 (1) in respect of that fuel, or

(b) if, in accordance with section 45 (1.1), section 45 (1) does not apply in respect of that fuel.

11 Section 47 is amended

(a) in subsection (1) (c) by adding "collect any tax or" before "remit" and by adding "collected," before "remitted", and

(b) by repealing subsections (2) and (3) and substituting the following:

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

(a) 10% of the security that the vendor would have been required to pay under section 30 in respect of that fuel if the vendor, at the time of sale, had been a collector who was not exempt from the requirement to pay security under that section, and

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

(3) If the director is satisfied that a vendor whose appointment as a collector for a type or subcategory of a type of fuel is effective in accordance with section 16 (2.3) sold, within British Columbia, that type or subcategory of a type of fuel in the period described in section 26.1, the director may impose on the vendor, in addition to any other penalty, a penalty equal to 10% of the security that the vendor would have been required to pay under section 30 in respect of that fuel if the vendor, at the time of sale, had been a collector.

(4) For the purposes of subsection (5) and despite section 16 (2.3), a vendor whose appointment as a collector for a type or subcategory of a type of fuel is effective in accordance with section 16 (2.3) is deemed to have been appointed a collector at the time the director made the appointment.

(5) If the director is satisfied that a vendor wilfully sold fuel contrary to section 15, the director may impose on the vendor, in addition to any other penalty, a penalty equal to the amount of security that the vendor would have been required to pay under section 30 in respect of that fuel if the vendor, at the time of sale, had been a collector who was not exempt from the requirement to pay security under that section.

12 Section 51 is amended

(a) by adding the following subsection:

(1.1) If the director assesses interest under section 55 or 55.1, the director may issue a notice of assessment to the person liable to pay the amount of interest assessed. , and

(b) in subsection (2) by adding "or (1.1)" after "subsection (1)".

13 Section 55 is repealed and the following substituted:

Interest until notice of assessment issued

55  (1) In this section:

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

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

(b) despite section 45 (1.2), security that has not been paid as required under this Act but for which the person liable may not be assessed in accordance with section 45 (1.1);

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

(a) that the person is entitled to receive from the government as a refund under Part 6, including any interest on that amount that has accrued by the beginning of the period, and

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(9) If interest may not be assessed under subsection (2) for a particular period in accordance with subsection (8), for the purposes of the regulations under section 27 (1) (c) of the Financial Administration Act, the amount owing by the government for the particular period is deemed to be reduced by the non-assessed amount for that particular period.

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

(11) For the purposes of this section and the regulations under section 27 (1) (c) of the Financial Administration Act, the director may determine, in a manner and by a procedure the director considers adequate and expedient, when an amount became owing by the government.

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

(a) the non-assessed amount or refund amount changes, or

(b) a notice of assessment is issued in relation to all or part of a non-assessed amount.

Interest after notice of assessment issued

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

14 Section 56 (1) (d) is amended by striking out "52 or 55" and substituting "52, 55 or 55.1".

Income Tax Act

15 Section 1 (8) (d) of the Income Tax Act, R.S.B.C. 1996, c. 215, is amended by striking out "sections 10 to 13 of this Act;" and substituting "sections 10 to 13 and 13.07 to 13.09 of this Act;".

16 Section 4.721 (1) is amended in paragraph (d) of the definition of "BC flow-through mining expenditure" by striking out "2014" and substituting "2015".

17 Section 4.721 (1.1) is amended by striking out "2014" in both places and substituting "2015".

18 Section 10 is amended

(a) by adding the following subsection:

(2.1) Subsection (2) does not apply in relation to any month after June 2014. , and

(b) by repealing subsection (4) and substituting the following:

(4) Without limiting section 48 (1) and (2), the Lieutenant Governor in Council may make regulations as follows:

(a) for the purposes of subsection (3) (a), prescribing the amount, or the calculation of the amount, of the BC basic family bonus;

(b) for the purposes of subsection (3) (b),

(i) prescribing the amount, or the calculation of the amount, of the BC earned income benefit, or

(ii) specifying that the amount of the BC earned income benefit is zero.

19 Section 13 (1) is amended by striking out "The Lieutenant Governor in Council may make regulations" and substituting "Without limiting section 48 (1) and (2), the Lieutenant Governor in Council may make regulations".

20 The following sections are added:

Application of federal provisions — interpretation for
BC early childhood tax benefit

13.07  Section 122.6 of the federal Act applies for the purposes of this section and sections 13.071 to 13.09 of this Act, except that, in addition to any other necessary modifications, paragraph (a) of the definition of "qualified dependant" in section 122.6 of the federal Act is to be read as if the phrase "18 years" were "6 years".

BC early childhood tax benefit

13.071  (1) An overpayment on account of an individual's liability under this Act for a taxation year is deemed to have arisen during a month in relation to which the year is the base taxation year, if the following requirements are met:

(a) the month is after March 2015;

(b) the individual has filed a return of income for that year;

(c) if the minister so demands, the individual's cohabiting spouse or common-law partner at the end of the taxation year has filed a return of income for that year;

(d) the individual was resident in British Columbia for a period that

(i) includes the first day of that month, and

(ii) began before the first day of that month.

(2) The amount of the overpayment deemed by subsection (1) to have arisen during a month in respect of an individual's liability under this Act for a taxation year is determined by the following formula:

(3) Despite subsection (2), if an eligible individual is a shared-custody parent in respect of one or more qualified dependants at the beginning of a month, the overpayment deemed by subsection (1) to have arisen during the month is equal to the amount determined by the following formula:

(4) If an amount determined by applying the formula in subsection (2) or (3) would, but for this subsection, be a negative amount, that amount is deemed to be nil.

(5) Section 122.61 (2) of the federal Act applies for the purposes of this section, except that, in addition to any other necessary modifications, section 122.61 (2) of the federal Act is to be read as if

(a) a reference to subsection (1) of section 122.61 of the federal Act were a reference to subsection (1) of this section, and

(b) the phrase "under this Part" were "under this Act".

(6) For the purposes of this section, if an individual was resident in Canada for only part of a taxation year or was not resident in Canada at any time in a taxation year, the individual's income for the year is deemed to be equal to the amount that would have been the individual's income for the year had the individual been resident in Canada throughout the year.

(7) For the purposes of this section, if an individual becomes bankrupt in a taxation year,

(a) the individual's income for the year includes the individual's income for the taxation year that begins on January 1 of the calendar year that includes the date of bankruptcy, and

(b) the total of all amounts deducted under section 63 of the federal Act in computing the individual's income for the year includes the amount deducted under that section for the individual's taxation year that begins on January 1 of the calendar year that includes the date of bankruptcy.

Application of federal provisions — rules about eligible individuals
and their spouses or common-law partners

13.08  Section 122.62 (1), (2) and (4) to (8) of the federal Act applies for the purposes of this section and sections 13.07, 13.071, 13.081 and 13.09 of this Act, except that, in addition to any other necessary modifications,

(a) section 122.62 (4) of the federal Act is to be read as if the phrase "18 years" were "6 years", and

(b) section 122.62 (5) (b), (6) (b) and (7) (b) of the federal Act is to be read as if

(i) a reference to section 122.61 (1) of the federal Act were a reference to section 13.071 of this Act, and

(ii) the phrase "under this Part" were "under this Act".

BC early childhood tax benefit cannot be attached or assigned

13.081  A refund of an amount deemed by section 13.071 to be an overpayment on account of an individual's liability under this Act for a taxation year

(a) cannot be charged or given as security,

(b) cannot be assigned except under a prescribed Act,

(c) cannot be garnished or attached,

(d) is exempt from execution or seizure, and

(e) cannot be retained by way of deduction or set-off under the Financial Administration Act.

BC early childhood tax benefit regulations

13.09  Without limiting section 48 (1) and (2), the Lieutenant Governor in Council may make regulations for the purposes of sections 13.07 to 13.081, including prescribing Acts for the purposes of section 13.081 (b).

21  Section 16 (2) (a) is repealed and the following substituted:

(a) 2.5% of the amount determined by the following formula:

22 Section 25.1 (1) is amended

(a) in paragraph (f.2) (i) of the definition of "excluded expense" by striking out "January 1, 2014," and substituting "January 1, 2015,", and

(b) in paragraph (f.2) (ii) of the definition of "excluded expense" by striking out "December 31, 2013 and before January 1, 2015" and substituting "December 31, 2014 and before January 1, 2016".

23 Section 29 (3) is amended by repealing paragraph (b) (ii) and substituting the following:

(ii) deemed by the following sections of this Act to be an overpayment on account of the taxpayer's liability under this Act for the year:

(A) section 10 [BC Family Bonus];

(B) section 13.071 [BC early childhood tax benefit].

24 Section 38 (1) (a) is amended by striking out "to section 10 (3) of this Act," and substituting "to section 10 or 13.071 of this Act, as applicable,".

25 Section 42 (2) (a) (i) is amended by striking out "section 2, section 10 or any other provision" and substituting "section 2, 10 or 13.071 or any other provision".

26 Section 64 (5) (i) is amended by striking out "section 10 (3) (a)," and substituting "section 10 (3) (a) or 13.071 (2) to (4),".

27 Section 97 is amended in paragraph (b) of the definition of "BC qualified expenditure" by striking out "September 1, 2014," and substituting "September 1, 2017,".

Land Tax Deferment Act

28 Section 4 of the Land Tax Deferment Act, R.S.B.C. 1996, c. 249, is amended by adding the following subsection:

(1.4)  Despite subsection (1), the agreement is not terminated under subsection (1) by reason only that the eligible property becomes subject to an easement, statutory right of way or similar interest.

Motor Fuel Tax Act

29 The Motor Fuel Tax Act, R.S.B.C. 1996, c. 317, is amended by adding the following section:

Refunds authorized or required under the regulations

24.1  The director

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

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

30 Section 28 is amended by adding the following subsections:

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

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

31 Section 33 is amended by adding the following subsections:

(4) If a wholesale dealer buys fuel from a vendor whose appointment as a collector for the fuel is effective in accordance with section 28 (2.3), the appointment of the wholesale dealer as a deputy collector under subsection (1) (a) of this section is deemed to have been made at the time the wholesale dealer bought that fuel.

(5) If a wholesale dealer buys fuel from a deputy collector whose appointment as a deputy collector under subsection (1) (a) is effective in accordance with subsection (4), the appointment of the wholesale dealer as a deputy collector under subsection (1) (b) is deemed to have been made at the time the wholesale dealer bought the fuel.

32 The following section is added:

Relief of obligations to extent tax remitted

34.01  If a vendor's appointment as a collector for a fuel is effective in accordance with section 28 (2.3) and the collector sold, within British Columbia, the fuel within the period beginning on the date the appointment was effective in accordance with section 28 (2.3) and ending on the date the appointment was made by the director, the following apply in respect of that fuel:

(a) the collector or a deputy collector is relieved of any obligation under section 34 (4) to collect tax on the fuel to the extent that the tax on that fuel has been remitted to the government;

(b) a deputy collector is relieved of any obligation under section 34 (5) to remit tax on the fuel to the extent that the tax on that fuel has been remitted to the government;

(c) a retail dealer is relieved of any obligation under section 34 (6) to remit the tax on the fuel to the extent that the tax on that fuel has been remitted to the government;

(d) a retail dealer or deputy collector is relieved of any obligation under section 34 (7) to remit the tax collected on the fuel to the extent that the tax on that fuel has been remitted to the government;

(e) the collector is relieved of any obligation under section 38 (1) to pay security with respect to that fuel to the extent that the tax on that fuel has been remitted to the government;

(f) a deputy collector is relieved of any obligation under section 39 (1) to pay security with respect to that fuel to the extent that the tax on that fuel has been remitted to the government;

(g) a retail dealer is relieved of any obligation under section 40 (1) to pay security with respect to that fuel to the extent that the tax on that fuel has been remitted to the government.

33 Section 43 is amended by adding the following subsections:

(1.1) Subsection (1) does not apply in relation to security not paid under this Act to the extent that the director is satisfied that the person to whom the fuel was sold would be entitled to a refund of tax or security under this Act.

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

34 Section 44 (3) is repealed and the following substituted:

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

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

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

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

(a) if the person is assessed for failing to pay security under section 43 (1) in respect of that fuel, or

(b) if, in accordance with section 43 (1.1), section 43 (1) does not apply in respect of that fuel.

35 Section 45 is amended

(a) in subsection (1) (c) by adding "collect any tax or" before "remit" and by adding "collected," before "remitted", and

(b) by repealing subsections (2) and (3) and substituting the following:

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

(a) 10% of the security that the vendor would have been required to pay under section 38 in respect of that fuel if the vendor, at the time of sale, had been a collector who was not exempt from the requirement to pay security under that section, and

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

(3) If the director is satisfied that a vendor whose appointment as a collector for a type or subcategory of a type of fuel is effective in accordance with section 28 (2.3) sold, within British Columbia, that type or subcategory of a type of fuel in the period described in section 34.01, the director may impose on the vendor, in addition to any other penalty, a penalty equal to 10% of the security that the vendor would have been required to pay under section 38 in respect of that fuel if the vendor, at the time of sale, had been a collector.

(4) For the purposes of subsection (5) and despite section 28 (2.3), a vendor whose appointment as a collector for a type or subcategory of a type of fuel is effective in accordance with section 28 (2.3) is deemed to have been appointed a collector at the time the director made the appointment.

(5) If the director is satisfied that a vendor wilfully sold fuel contrary to section 28 (4), the director may impose on the vendor, in addition to any other penalty, a penalty equal to the amount of security that the vendor would have been required to pay under section 38 in respect of that fuel if the vendor, at the time of sale, had been a collector who was not exempt from the requirement to pay security under that section.

36 Section 46 is amended

(a) by adding the following subsection:

(1.1) If the director assesses interest under section 48 or 48.1, the director may issue a notice of assessment to the person liable to pay the amount of interest assessed. , and

(b) in subsection (2) by adding "or (1.1)" after "subsection (1)".

37 Section 48 is repealed and the following substituted:

Interest until notice of assessment issued

48  (1) In this section:

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

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

(b) despite section 43 (1.2), security that has not been paid as required under this Act but for which the person liable may not be assessed in accordance with section 43 (1.1);

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

(a) that the person is entitled to receive from the government as a refund under Part 5, including any interest on that amount that has accrued by the beginning of the period, and

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(9) If interest may not be assessed under subsection (2) for a particular period in accordance with subsection (8), for the purposes of the regulations under section 27 (1) (c) of the Financial Administration Act, the amount owing by the government for the particular period is deemed to be reduced by the non-assessed amount for that particular period.

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

(11) For the purposes of this section and the regulations under section 27 (1) (c) of the Financial Administration Act, the director may determine, in a manner and by a procedure the director considers adequate and expedient, when an amount became owing by the government.

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

(a) the non-assessed amount or refund amount changes, or

(b) a notice of assessment is issued in relation to all or part of a non-assessed amount.

Interest after notice of assessment issued

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

38 Section 50 (1) (d) is amended by striking out "46.1 or 48" and substituting "46.1, 48 or 48.1".

Ports Property Tax Act

39 Section 3 (2) of the Ports Property Tax Act, S.B.C. 2004, c. 7, is repealed.

40  Section 4 (2) is amended by striking out "one or more of the 2005 through 2019 taxation years." and substituting "the 2005 or a subsequent taxation year."

41  Section 5.1 is amended

(a)  in subsection (2) (b) by striking out "2010 to 2018 taxation years," and substituting "2010 and subsequent taxation years,", and

(b)  in subsection (4) by striking out ", ending not later than the 2018 taxation year".

Property Transfer Tax Act

42 Section 4 (1) of the Property Transfer Tax Act, R.S.B.C. 1996, c. 378, is amended in the definition of "qualifying value" by striking out "$425 000" and substituting "$475 000".

Provincial Sales Tax Act

43 Section 1 of the Provincial Sales Tax Act, S.B.C. 2012, c. 35, is amended

(a) by adding the following definitions:

"band" has the same meaning as in section 2 of the Indian Act (Canada);

"First Nation individual" means an individual

(a) who is an Indian, as defined in the Indian Act (Canada), and

(b) whose property is exempt from taxation under section 87 of the Indian Act (Canada) or under a provision of a final agreement equivalent to that section;

"parents' advisory council" means a parents' advisory council established under section 8 of the School Act, or under section 8 of that Act as it applies under section 166.26 of that Act; ,

(b) in the definition of "lease" by adding "the following:" after "include", in paragraph (a) by striking out "property, or" and substituting "property;" and by adding the following paragraphs:

(c) a right to use tangible personal property that is supplied with the purchase of accommodation if there is no separate price for the right to use the tangible personal property;

(d) a right to use tangible personal property that, in prescribed circumstances, is merely incidental to an agreement for the right to use real property, or to an agreement for the provision of services that are not subject to tax under this Act; ,

(c) in the definition of "original purchase price" by repealing paragraphs (a), (a.1) and (a.2) and substituting the following:

(a) in relation to a passenger vehicle other than a modified business vehicle or a modified motor vehicle that is a passenger vehicle, the purchase price of the passenger vehicle under section 10.1 (1);

(a.1) in relation to a modified business vehicle, the purchase price of the modified business vehicle under section 10.1 (2);

(a.2) in relation to a modified motor vehicle that is a passenger vehicle, the purchase price of the modified motor vehicle under section 10.1 (3); , and

(d) in the definition of "sale" by adding the following paragraphs:

(n) the provision of tangible personal property under an agreement for the purchase of accommodation if

(i) the fundamental and overriding objective of the agreement is the purchase of the accommodation and not the acquisition of the tangible personal property,

(ii) there is no separate purchase price for the tangible personal property, and

(iii) the total consideration payable for the accommodation, including the tangible personal property provided, is the same as, or only marginally different from, what would be the total consideration payable for the accommodation if the tangible personal property were not provided;

(o) the provision of a paper invoice to the person being invoiced; .

44 Section 1 is amended in paragraph (b.2) of the definition of "small seller" by adding "or by auction" after "special occasion licence".

45 The following section is added:

Original purchase price of certain vehicles

10.1  (1) For the purposes of paragraph (a) of the definition of "original purchase price", the purchase price of a passenger vehicle, other than a modified business vehicle or a modified motor vehicle that is a passenger vehicle, is as follows:

(a) subject to paragraphs (b) and (c), the purchase price of the passenger vehicle under section 10 [original purchase price of tangible personal property];

(b) subject to paragraph (c), if section 22 (1) [reduced purchase price] applies in respect of the purchase, the purchase price of the passenger vehicle under that section;

(c) if section 23 [purchase price if coupon accepted] applies in respect of the purchase, the purchase price of the passenger vehicle under that section.

(2) For the purposes of paragraph (a.1) of the definition of "original purchase price", the purchase price of a modified business vehicle is as follows:

(a) subject to paragraphs (b) and (c), the purchase price of the modified business vehicle under section 10 [original purchase price of tangible personal property] less the portion of that purchase price that can reasonably be attributed to the modifications referred to in paragraph (b) of the definition of "modified business vehicle";

(b) subject to paragraph (c), if section 22 (1) [reduced purchase price] applies in respect of the purchase, the purchase price of the modified business vehicle under that section less the portion of that purchase price that can reasonably be attributed to the modifications referred to in paragraph (b) of the definition of "modified business vehicle";

(c) if section 23 [purchase price if coupon accepted] applies in respect of the purchase, the purchase price of the modified business vehicle under that section less the portion of that purchase price that can reasonably be attributed to the modifications referred to in paragraph (b) of the definition of "modified business vehicle".

(3) For the purposes of paragraph (a.2) of the definition of "original purchase price", the purchase price of a modified motor vehicle that is a passenger vehicle is as follows:

(a) subject to paragraphs (b) and (c), the purchase price of the modified motor vehicle under section 10 [original purchase price of tangible personal property] less the portion of that purchase price that can reasonably be attributed to those special features or modifications of the vehicle for which the sole purpose is to

(i) facilitate the use of the vehicle by, or the transportation of, an individual using a wheelchair, or

(ii) equip the vehicle with an auxiliary driving control that facilitates the operation of the vehicle by an individual with a disability;

(b) subject to paragraph (c), if section 22 (1) [reduced purchase price] applies in respect of the purchase, the purchase price of the modified motor vehicle under that section less the portion of that purchase price that can reasonably be attributed to those special features or modifications of the vehicle for which the sole purpose is to

(i) facilitate the use of the vehicle by, or the transportation of, an individual using a wheelchair, or

(ii) equip the vehicle with an auxiliary driving control that facilitates the operation of the vehicle by an individual with a disability;

(c) if section 23 [purchase price if coupon accepted] applies in respect of the purchase, the purchase price of the modified motor vehicle under that section less the portion of that purchase price that can reasonably be attributed to those special features or modifications of the vehicle for which the sole purpose is to

(i) facilitate the use of the vehicle by, or the transportation of, an individual using a wheelchair, or

(ii) equip the vehicle with an auxiliary driving control that facilitates the operation of the vehicle by an individual with a disability.

46 Section 13 (3) is amended by adding the following paragraph:

(f) section 82.01 [tax if leased property used for new purpose].

47 Section 19 (3) is amended by striking out "other prescribed services purchased for a single price from a prescribed person," and substituting "other services purchased for a single price,".

48 Section 25 (2) (a) (iii) is amended by striking out "ceases to be licensed under a licence to which a prorating agreement applies," and substituting "is licensed for use solely within British Columbia,".

49 Section 26 is amended

(a) in subsection (4) by striking out "subsection (6)," and substituting "subsections (4.1) and (6),", and

(b) by adding the following subsection:

(4.1) Subsection (4) (b) does not apply in relation to software if

(a) the software is the only taxable component sold or provided with a non-taxable component for a single price, and

(b) the software is provided

(i) to a purchaser as part of the purchaser's participation in a prescribed program or activity, and

(ii) only to participants of the program or activity by the person offering that program or activity.

50 Section 28 is amended

(a) by repealing subsection (1) (a) and substituting the following:

(a) section 37 [tax on purchase], except in relation to tax imposed under section 37 in accordance with section 88 [tax if leased tangible personal property becomes part of real property]; , and

(b) subsection (8) (a) is amended by striking out "Canada" and substituting "Canada, British Columbia".

51 Section 29 is amended by adding the following subsections:

(4) Despite subsections (2) and (3) but subject to section 30, if a registrant must pay tax imposed under a relevant provision and the tax is not levied in accordance with section 179 (1), the tax is payable on or before the prescribed date.

(5) Subject to section 30 (5), tax payable under a relevant provision by a registrant must be paid in the prescribed manner if the tax is not levied in accordance with section 179.

52 Section 32 is amended

(a) by repealing subsection (3) and substituting the following:

(3) An agreement referred to in subsection (1) must provide for the types of tangible personal property or software to which the agreement applies and must provide for one or both of the following:

(a) subject to the regulations, the circumstances in which the person liable to pay tax must pay the tax directly to the government, instead of paying the tax to a collector in relation to

(i) a delivery in British Columbia, or a purchase or lease, of tangible personal property to which the agreement applies, or

(ii) a purchase of software to which the agreement applies;

(b) the circumstances in which the person liable to pay tax must pay the tax on or before a date that is different from the date that the tax would otherwise be payable under this Act. , and

(b) in subsection (5) by striking out "in relation to a purchase or lease of tangible personal property or a purchase of software" and substituting "in relation to the tangible personal property or software".

53 Section 34 (1) to (3) and (5) to (8.1) is amended by adding "51 (6)," before "52".

54 Section 35 is amended

(a) in subsections (2) and (3) by striking out "sections 39" and substituting "sections 39, 41, 82.01", and

(b) in subsections (4) to (6) by striking out "section 39" and substituting "sections 39, 41 and 82.01".

55 Section 36 (4) is repealed and the following substituted:

(4) Subsections (5) and (6) apply if

(a) the donor who gave the gift to the person who must pay tax in accordance with section 49 (6) (c) or 50 (2) (b)

(i) is a registrant under Part IX [Goods and Services Tax] of the Excise Tax Act, or

(ii) acquired the vehicle, boat or aircraft in prescribed circumstances, or

(b) the person who must pay tax in accordance with section 49 (6) (c) or 50 (2) (b) imported the vehicle, boat or aircraft from outside Canada.

56 Section 37 (6) is amended

(a) by adding "or 80.5 (7)" after "section 80.1 (1)", and

(b) in paragraph (b) by adding "or 80.5 (7)" after "section 80.1 (1) (c)".

57 Section 38 (b) is repealed and the following substituted:

(b) subject to section 39 (2) and (4), a multijurisdictional vehicle or a vehicle that is to be immediately licensed in British Columbia as described in section 69 (1) (a) [tax if multijurisdictional vehicle licensed].

58 Section 39 is amended by adding the following subsection:

(4) If a collector, as lessor, leases a vehicle to a person who alleges that the vehicle is to be immediately licensed in British Columbia as described in section 69 (1) (a), the collector must nevertheless levy and collect the tax under subsection (1) of this section unless the collector obtains from that person, at or before the time the tax is payable,

(a) the account number assigned by the Insurance Corporation of British Columbia to the person who licenses the vehicle in British Columbia under a licence to which a prorating agreement applies, or

(b) a declaration in a form acceptable to the director.

59 Section 41 is amended

(a) in subsection (3) in the formula by striking out "lease price x",

(b) in subsection (3) by repealing the descriptions of "lease price" and "rate" and substituting the following:

(c) by adding the following subsection:

(3.1) For the purposes of applying the applicable rate under section 35 in relation to the calculation under subsection (3) of this section, the lease price of the tangible personal property is that portion of the lease price that is attributable to the rental period.

60 Section 49 (12) is amended

(a) by adding "or 80.5 (7)" after "section 80.1 (2)", and

(b) in paragraph (b) by adding "or 80.5 (7)" after "section 80.1 (2) (c)".

61 Section 50 (1) (a) is amended by striking out "brings or sends into British Columbia, or receives delivery of in British Columbia," and substituting "brought or sent into British Columbia, or received delivery of in British Columbia,".

62 Section 51 (6) is amended

(a) in the formula by striking out "(purchase price x rate)" and substituting "rate", and

(b) by repealing the descriptions of "purchase price" and "rate" and substituting the following:

63 Section 72 is amended

(a) in subsection (1) (c) by adding "and is subsequently licensed for use solely within British Columbia" after "prorating agreement applies",

(b) in subsection (2) by adding "or" at the end of paragraph (b), by striking out "or" at the end of paragraph (c) and by repealing paragraph (d), and

(c) in subsection (4) by striking out "ceases to be licensed under a licence to which a prorating agreement applies." and substituting "is licensed for use solely within British Columbia."

64 Section 72.1 is amended

(a) in subsection (1) (a) (iii) and (b) (iii) by adding "and is subsequently licensed for use solely within British Columbia" after "prorating agreement applies",

(b) in subsection (2) by adding "or" at the end of paragraph (a), by striking out "or" at the end of paragraph (b) (ii) and by repealing paragraph (c), and

(c) in subsection (4) by striking out "ceases to be licensed under a licence to which a prorating agreement applies." and substituting "is licensed for use solely within British Columbia."

65 Section 74.1 (1) is amended by striking out "and" at the end of paragraph (c) and by repealing paragraph (d) and substituting the following:

(d) no person is entitled to a credit or refund under section 74 in respect of the vehicle, and

(e) either

(i) no tax is payable under section 72 or 72.1 in respect of the vehicle because of section 72 (2) (a) or (b) or 72.1 (2), or

(ii) on ceasing to be licensed under a licence to which a prorating agreement applies, the vehicle is licensed for use within another jurisdiction and is not licensed for use within British Columbia.

66 The following section is added:

Refund at end of vehicle licence period

74.2  (1) The director must pay to a person a refund of a portion of the tax paid by the person under one or both of sections 69 and 71 in respect of a vehicle licensed, for a vehicle licence period, under a licence to which a prorating agreement applies if, at the end of the vehicle licence period, the director is satisfied that

(a) the person licensed the vehicle under a licence to which a prorating agreement applies,

(b) the person paid tax under one or both of sections 69 and 71 in respect of the vehicle,

(c) before the end of that vehicle licence period, the vehicle ceased to be licensed under the licence to which the prorating agreement applies,

(d) the vehicle was not licensed for use solely within British Columbia subsequent to being licensed under the licence to which the prorating agreement applies, and

(e) no person is entitled to a credit or refund under section 74 in respect of the vehicle.

(2) A refund under subsection (1) must be calculated in accordance with the regulations.

67 The following section is added:

Refund from Insurance Corporation of British Columbia
authorized under regulations

75.2  If authorized by the regulations, the Insurance Corporation of British Columbia may refund all or part of an amount paid as tax under this Division.

68 Section 79 (1) (a) and (2) (a) is amended by adding "situated in British Columbia" after "real property".

69 Section 80.1 is amended

(a) by repealing subsection (1) (c) and substituting the following:

(c) the other party who entered into the contract with the contractor is one of the following:

(i) the government of Canada;

(ii) a person who would be exempt under this Act from tax imposed under section 37 if the person were to purchase the tangible personal property;

(iii) a First Nation individual or band that would be exempt from tax imposed under section 37 if the First Nation individual or band were to purchase the tangible personal property. ,

(b) by repealing subsection (2) (c) and substituting the following:

(c) the other party who entered into the contract with the contractor is one of the following:

(i) the government of Canada;

(ii) a person who would be exempt under this Act from tax imposed under section 49 if the person were to bring or send into British Columbia, or receive delivery of in British Columbia, the tangible personal property;

(iii) a First Nation individual or band that would be exempt from tax imposed under section 49 if the First Nation individual or band were to bring or send into British Columbia, or receive delivery of in British Columbia, the tangible personal property. , and

(c) in subsection (3) by striking out "Subsection (1) or (2)" and substituting "Subsection (1) (c) (i) or (2) (c) (i)".

70 Section 80.2 is amended

(a) in subsection (1) (a) by striking out "written" and by adding "situated in British Columbia" after "real property",

(b) by repealing subsection (2) (d) and substituting the following:

(d) the other party who entered into the contract with the contractor is one of the following:

(i) the government of Canada;

(ii) a person who would be exempt under this Act from tax imposed under Division 5 if the person were to bring or send into British Columbia, or receive delivery of in British Columbia, the tangible personal property;

(iii) a First Nation individual or band that would be exempt from tax imposed under Division 5 if the First Nation individual or band were to bring or send into British Columbia, or receive delivery of in British Columbia, the tangible personal property. , and

(c) in subsection (3) by striking out "Subsection (2)" and substituting "Subsection (2) (d) (i)".

71 Section 80.4 (1) is amended

(a) in paragraph (a) by striking out "section 80.1 (1) (a) or (2) (a) or 80.2 (2) (a)" and substituting "section 80.1 (1) (a) or (2) (a), 80.2 (2) (a) or 80.5 (1) (b)", and

(b) in paragraph (b) by adding "or 80.5 (7) (b)" after "section 80.1 (1) (c) (ii) or (2) (c) (ii)".

72 Section 80.5 is amended

(a) in subsection (6) by striking out "and" at the end of paragraph (a) (ii), by adding ", and" at the end of paragraph (b) and by adding the following paragraph:

(c) for the purpose of fulfilling the contract referred to in subsection (1) (b), the contractor is required to supply and affix, or install, affixed machinery or improvements to real property situated in British Columbia. , and

(b) by adding the following subsections:

(7) Subject to subsection (8), a contractor is exempt from tax imposed under subsection (2) in relation to tangible personal property if the contract referred to in subsection (1) (b) is in writing and the other party who entered into that contract with the contractor is one of the following:

(a) the government of Canada;

(b) a person who would be exempt under this Act from tax

(i) imposed under section 37 if the person were to purchase the tangible personal property, or

(ii) imposed under section 49 if the person were to bring or send into British Columbia, or receive delivery of in British Columbia, the tangible personal property;

(c) a First Nation individual or band that would be exempt from tax

(i) imposed under section 37 if the First Nation individual or band were to purchase the tangible personal property, or

(ii) imposed under section 49 if the First Nation individual or band were to bring or send into British Columbia, or receive delivery of in British Columbia, the tangible personal property.

(8) Subsection (7) (a) does not apply if the government of Canada has entered into an agreement with the government of British Columbia under which the government of Canada has agreed to pay tax imposed under this Act.

73 Section 82 (2) is amended by striking out "section 142 (1), (2) or (2.1)" and substituting "section 142 (1) or (2.1)".

74 The following section is added:

Tax if leased property used for new purpose

82.01  (1) Subject to subsection (2) and section 87 [tax if recording exhibited], this section applies to a person in relation to tangible personal property if the person

(a) leased tangible personal property that was exempt from tax under this Act because the tangible personal property was to be used for a particular purpose, and

(b) subsequently uses that tangible personal property, or allows that tangible personal property to be used, for a purpose other than

(i) the particular purpose, or

(ii) another purpose for which that tangible personal property would be exempt from tax under this Act if that tangible personal property were to be used for that purpose.

(2) This section does not apply to a person in relation to tangible personal property that was exempt from tax under section 142 (2) [exemption for tangible personal property intended for re-lease] if

(a) the only subsequent use of that tangible personal property, other than leasing it, is occasionally, under an agreement, supplying the tangible personal property with a person to operate it, and

(b) the tangible personal property is capitalized as lease inventory in the person's business accounting records.

(3) A person to whom this section applies must pay to the government, in respect of each rental period, under the lease, that includes or begins after the date that the person first uses that tangible personal property, or allows that tangible personal property to be used, as referred to in subsection (1) (b), tax on the lease price of the tangible personal property at the applicable rate under section 35 [rates of tax in relation to lease price].

(4) For the purposes of subsection (3), the lease price of the tangible personal property is,

(a) in relation to the rental period that includes the date that the person first uses that tangible personal property, or allows that tangible personal property to be used, as referred to in subsection (1) (b), that portion of the lease price of the tangible personal property that is attributable to that portion of the rental period that begins on that date and ends at the end of that rental period, or

(b) in relation to a rental period that begins after the date that the person first uses that tangible personal property, or allows that tangible personal property to be used, as referred to in subsection (1) (b), that portion of the lease price of the tangible personal property that is attributable to that rental period.

(5) Tax payable under subsection (3) in respect of the rental period referred to in subsection (4) (a) must be paid on or before the last day of the month after the month in which the person first uses that tangible personal property, or allows that tangible personal property to be used, as referred to in subsection (1) (b).

(6) Tax payable under subsection (3) in respect of a rental period referred to in subsection (4) (b) must be paid on or before the last day of the month after the month in which the rental periods ends.

(7) Despite subsections (5) and (6), tax payable under subsection (3) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

75 Section 88 is amended by adding the following subsections:

(3) Tax payable under section 37 in accordance with this section must be paid on or before the last day of the month after the month in which the tangible personal property is used so that it ceases to be personal property at common law.

(4) Despite subsection (3), tax payable under section 37 in accordance with this section by a registrant must be paid on or before the prescribed date and in the prescribed manner.

76 Section 95 (1) is repealed and the following substituted:

(1) Subject to subsection (1.1), fuel, as defined in the Motor Fuel Tax Act, is exempt from tax imposed under this Division.

(1.1) The exemption under subsection (1) does not apply to propane included within the definition of "energy product".

77 Section 103 (2) is amended

(a) by striking out "If a refund to a purchaser is made under this Act" and substituting "If a purchaser is paid a refund or allowed a credit of tax paid under this Act", and

(b) by adding "or credited" after "refunded".

78 Section 110 is amended

(a) in subsection (1) (b) by striking out "a user of the software" and substituting "a user of the software, telecommunication service", and

(b) in subsection (2) (b) by adding "telecommunication service or" before "tangible personal property".

79 Section 113 is amended

(a) in subsection (1) (a) by striking out "or" at the end of subparagraph (i) and by adding the following subparagraph:

(i.1) a telecommunication service for the purpose of retail sale, or ,

(b) in subsection (1) (c) (i) by striking out "other software or" and substituting "other software, a telecommunication service or",

(c) in subsection (1) (c) (v) by striking out "software or" and substituting "software, telecommunication service or",

(d) in subsection (3) (a) by striking out "tangible personal property" and substituting "other software" and by striking out "or", and

(e) in subsection (3) by adding the following paragraph:

(a.1) a telecommunication service for the purpose of retail sale is to retain an interest in the telecommunication service after the retail sale, or .

80 Section 141 is amended

(a) by repealing subsection (1) (a) and substituting the following:

(a) subject to subsections (2) to (4) of this section, tangible personal property that is purchased in British Columbia, brought or sent into British Columbia or delivered in British Columbia

(i) for the purpose of being processed, fabricated or manufactured into, attached to or incorporated into, or

(ii) for the purpose of packaging

other tangible personal property, other than prescribed tangible personal property, for the purpose of retail sale or lease; ,

(b) in subsection (1) by adding the following paragraph:

(g) tangible personal property that is purchased in British Columbia, brought or sent into British Columbia or delivered in British Columbia substantially for the purpose of

(i) incorporating any software program or telecommunication contained in the tangible personal property into other tangible personal property for the purpose of retail sale or lease, or

(ii) incorporating any software program or telecommunication contained in the tangible personal property into software or a telecommunication service for the purpose of retail sale. , and

(c) by repealing subsection (4) and substituting the following:

(4) The exemptions under subsection (1) (a) and (c) do not apply if the person who purchased in British Columbia, brought or sent into British Columbia or received delivery of in British Columbia the tangible personal property that is used

(a) for the purpose of being processed, fabricated or manufactured into, attached to or incorporated into, or

(b) for the purpose of packaging

other tangible personal property for the purpose of retail sale or lease is to retain an interest in the tangible personal property after the retail sale or lease.

81 Section 146 is repealed and the following substituted:

Refund if no obligation to pay

146  If a person has paid to a collector an amount as tax under this Act in circumstances in which there was no legal obligation to pay the amount as tax, the collector may, within 180 days of the date the amount was paid, refund or credit to the person the amount paid as tax.

82 Section 147 (1) (a) is amended by adding "39 (4)," before "49 (10)".

83 Section 148 (1) and (2) is amended by adding "or credit" after "must not request a refund".

84 Section 152 is amended by adding the following subsection:

(3) If the director is satisfied that

(a) a collector has remitted an amount as tax under this Act, and

(b) the person liable to pay the tax has paid the tax directly to the government,

the director must refund that amount to the collector.

85 Section 153 (1) (a) is amended by adding "39 (4)," before "44 (2)".

86 Section 162 (c) and (d) is amended by adding "or parents' advisory council" after "an eligible charity".

87 Section 165 is amended

(a) in subsections (1) and (3) by striking out "a person" and substituting "a person, a parents' advisory council", and

(b) in subsection (1) (a) by striking out "or" at the end of subparagraph (i) and by adding the following subparagraph:

(i.1) in the case of a claim by a parents' advisory council, by an authorized representative of the parents' advisory council, or .

88 Section 168 is amended

(a) in subsection (1) (e) by striking out "any other person who" and substituting "a person who is not referred to in paragraphs (a) to (d) and who",

(b) in subsection (1) by adding the following paragraphs:

(f) a person who

(i) is not otherwise described in this section,

(ii) is located in Canada but outside British Columbia, and

(iii) sells or provides, or intends to sell or provide, to a person in British Columbia tangible personal property, software or a taxable service;

(g) a person who

(i) is not otherwise described in this section,

(ii) is located outside Canada, and

(iii) sells or provides, or intends to sell or provide, to a person in British Columbia software or a taxable service. ,

(c) in subsection (3) by striking out "(9)," and substituting "(9.1),",

(d) in subsection (7) by adding the following paragraph:

(e) in relation to an applicant referred to in subsection (1) (f), the applicant has not entered into an agreement with the director, on behalf of the government, setting out

(i) the duties to be performed by the applicant when the applicant is acting as a registrant, and

(ii) any other matters the director considers necessary or advisable. , and

(e) by adding the following subsection:

(9.1) In relation to an applicant referred to in subsection (1) (g), the director must refuse to register the applicant under subsection (3) unless

(a) the director considers that the applicant is suitable, and

(b) the applicant has entered into an agreement with the director, on behalf of the government, setting out

(i) the duties to be performed by the applicant when the applicant is acting as a registrant, and

(ii) any other matters the director considers necessary or advisable.

89 Section 171 is repealed and the following substituted:

Direct seller must be registered

171  (1) Subject to subsection (2), a direct seller must not sell an exclusive product to an independent sales contractor in British Columbia unless the direct seller

(a) is registered under section 168 at the time of sale, or

(b) sells only exclusive products that are exempt from tax imposed under this Act.

(2) A direct seller who is located in Canada but outside British Columbia must be registered under section 168 at the time the direct seller causes an exclusive product sold to an independent sales contractor to be delivered into British Columbia, unless the direct seller sells only exclusive products that are exempt from tax imposed under this Act.

(3) Sections 83 [demand on third party] and 85 [books and records are property of the government] of the Financial Administration Act do not apply to a person who is required under subsection (2) of this section to be registered under section 168.

90 The following section is added:

Collection of tax on liquor sold by auction

182.2  (1) A person, other than a collector, who sells liquor by auction is an agent of the government for the purposes of levying and collecting the tax imposed under section 37 on that sale.

(2) As agent under subsection (1), a person must levy and collect tax as required under this Act.

(3) If tax is imposed under section 37 in relation to liquor sold by auction by a person who is not a collector, the person must levy and collect the tax at the time the tax is payable in accordance with section 28.

(4) A person who must levy and collect tax in accordance with subsection (3) must, on or before the prescribed date and in the prescribed manner, remit to the government amounts of tax levied under that subsection by the person, whether or not collected.

(5) Section 179 (3) does not apply to a person in relation to an amount the person must collect under subsection (3) of this section.

91 Section 186 (1) is amended

(a) in paragraph (b) by adding ", other than an amount of tax imposed in relation to a sale of liquor by auction" after "under this Act", and

(b) by adding the following paragraph:

(d) a person, other than a collector, who sells liquor by auction.

92 Section 192 (1) (a) is repealed and the following substituted:

(a) section 37 [tax on purchase], but only in relation to tax imposed under section 37 in accordance with section 88 [tax if leased tangible personal property becomes part of real property];

(a.1) section 41 [tax if leased property used in British Columbia during rental period];

(k.01) section 82.01 [tax if leased property used for new purpose]; .

93 Section 201 (1) is amended in paragraph (c) (ii) and (iii) of the definition of "avoidance transaction" by striking out "Canada" and substituting "Canada, British Columbia".

94 Section 203 is amended by adding the following subsection:

(1.01) If the director must impose a penalty under subsection (1) and the director is satisfied that the person liable to pay the tax has paid the tax to the government or would be entitled to a refund of the tax if the person had paid the tax, the director, despite that subsection, may impose on the collector a penalty equal to the amount of the penalty that would otherwise be imposed under that subsection less the amount of tax paid to the government by that person or the amount of the refund of tax to which the person would be entitled.

95 Section 203 is amended by adding the following subsection:

(6) Subsections (1), (1.01) and (2) to (5) apply in relation to tax that is to be levied and collected in accordance with section 182.2 (3) [collection of tax on liquor sold by auction] as if the person who must levy and collect that tax were a collector.

96 Section 204 (1) is amended by adding "or 80.5 (7)" after "section 80.1 (1) or (2)".

97 Section 205 (c) is amended

(a) by adding "levy," before "remit or pay", and

(b) in subparagraphs (i) and (ii) by striking out "amount not remitted or paid" and substituting "amount not levied, remitted or paid as required under this Act".

98 Section 206 is amended by adding the following subsection:

(3.1) Subsection (3) applies in relation to a penalty imposed under section 203 on a person referred to in section 203 (6) as if the person were a collector.

99 Section 206 (4) (b) is amended by adding "or equals" after "exceeds".

100 Section 221 is amended

(a) in subsection (4) by adding "or (b)" after "paragraph (a)", and

(b) in subsection (7) by striking out "the amount of taxes remaining uncollected or unremitted, or both, any related penalty and any interest on that amount and the penalty that were required to be collected or were collected by the person for the 6 months before the date of the most recent registration of a lien under subsection (2) (b)." and substituting "the amount of taxes remaining uncollected or unremitted, or both, that were required to be collected or were collected by the person for the 6 months before the date of the most recent registration of a lien under subsection (2) (b), any related penalty and any interest on that amount and the penalty."

101 The following section is added to Part 12:

Estimates of revenue

229.1  Before each fiscal year of the government, the minister must estimate the following in writing:

(a) the amount, to be recognized as revenue of the government for the fiscal year, that is derived from tax imposed under section 43 [additional tax on lease of passenger vehicle];

(b) the amount, to be recognized as revenue of the government for the fiscal year, that is derived from the taxation under this Act of disposable diapers designed for babies and young children;

(c) the amount, to be recognized as revenue of the government for the fiscal year, that is derived from tax imposed under Division 11 [Energy Products] of Part 3.

102 Section 237 (a) is repealed and the following substituted:

(a) respecting the circumstances in which a person liable to pay tax must pay the tax to a collector or directly to the government in relation to

(i) a delivery in British Columbia, or a purchase or lease, of tangible personal property to which the agreement applies, or

(ii) a purchase of software to which the agreement applies; .

103 Section 242 (1) (a.1) is amended by striking out "refund to an eligible charity" and substituting "refund, to an eligible charity or a parents' advisory council,".

104 Section 242 is amended by adding the following subsection:

(4) For the purposes of section 75.2 [refund from Insurance Corporation of British Columbia authorized under regulations], the Lieutenant Governor in Council may make regulations providing for a refund of all or part of an amount paid as tax under Division 6 of Part 3, including, without limitation, regulations doing one or more of the following:

(a) permitting the payment of a refund to a person of an amount paid under Division 6 of Part 3 by the person;

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

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

Provincial Sales Tax Transitional Provisions
and Amendments Act, 2013

105 Sections 3 (6) (a), 5 (6) (a), 8 (5) (a), 10 (5) (a), 17 (7) (a), 18 (7) (a), 34 (4) (a) and 35 (3) (a) of the Provincial Sales Tax Transitional Provisions and Amendments Act, 2013, S.B.C. 2013, c. 1, are amended by striking out "Canada" and substituting "Canada, British Columbia".

106 Section 50 is amended

(a) in subsection (1) (b) by striking out "the person must pay to the Insurance Corporation of British Columbia" and substituting "the person owes", and

(b) by adding the following subsection:

(1.1) A person to whom this section applies must pay to the Insurance Corporation of British Columbia, at the time of registering the vehicle, the tax imposed under the Consumption Tax Rebate and Transition Act in respect of that vehicle.

Regent College Act

107 The Regent College Act, S.B.C. 1968, c. 68, is amended by adding the following section:

Property tax exemption

9.1  (1) In this section, "college property" means property that is

(a) owned by the College or leased by it from the Crown, a municipality or a regional district, and

(b) occupied by the College and used by it for educational purposes.

(2) The College is exempt from taxation under the following Acts in respect of college property:

(a) Assessment Authority Act;

(b) British Columbia Transit Act;

(c) Community Charter;

(d) Hospital District Act;

(e) Library Act;

(f) Local Government Act;

(g) Municipal Finance Authority Act;

(h) Police Act;

(i) School Act;

(j) South Coast British Columbia Transportation Authority Act;

(k) Taxation (Rural Area) Act;

(l) University Endowment Land Act;

(m) Vancouver Charter.

School Act

108 Section 131.2 of the School Act, R.S.B.C. 1996, c. 412, is amended

(a) in subsection (2.1) by striking out "2011 and subsequent" and substituting "2011, 2012 and 2013",

(b) by adding the following subsection:

(2.2) For the 2014 and subsequent taxation years, an owner of class 4 property is entitled to a credit equal to 60% of the school taxes levied in the taxation year on the class 4 property. , and

(c) in subsection (3) by striking out "subsection (2) or (2.1)," and substituting "subsection (2), (2.1) or (2.2),".

Special Accounts Appropriation and Control Act

109 Section 9.5 (2) (b) of the Special Accounts Appropriation and Control Act, R.S.B.C. 1996, c. 436, is repealed and the following substituted:

(b) an amount, for each quarter of a fiscal year, that is equal to 1/4 of the amount estimated under section 229.1 (c) of the Provincial Sales Tax Act for the fiscal year; .

Sustainable Environment Fund Act

110 Section 4 (e.1) of the Sustainable Environment Fund Act, R.S.B.C. 1996, c. 445, is repealed and the following substituted:

(e.1) an amount, for each quarter of a fiscal year, that is equal to 1/4 of the amount estimated under section 229.1 (b) of the Provincial Sales Tax Act for the fiscal year; .

Tobacco Tax Act

111 Section 2 (2) and (3) of the Tobacco Tax Act, R.S.B.C. 1996, c. 452, is amended by striking out "22.3¢" and substituting "23.9¢".

Transportation Act

112 Section 35.1 of the Transportation Act, S.B.C. 2004, c. 44, is repealed and the following substituted:

Revenue from additional tax on lease of passenger vehicle

35.1 In each calendar month, the Minister of Finance must pay to the authority out of the consolidated revenue fund, without an appropriation other than this section, 1/12 of the amount estimated under section 229.1 (a) of the Provincial Sales Tax Act for the fiscal year that includes the calendar month.

University Act

113 Section 54 of the University Act, R.S.B.C. 1996, c. 468, is amended

(a) in subsection (1) by adding "the Police Act," before "the School Act", and

(b) in subsection (2) by striking out "land" in both places and substituting "property".

Tax-Related Budget Measures — Transitional and Other Provisions

Carbon Tax Act transition — penalty for failure to pay security

114  The director may impose on a vendor a penalty under section 47 (2), (3) or (5) of the Carbon Tax Act, as enacted by this Act, in respect of a type or subcategory of a type of fuel sold, within British Columbia, by the vendor on or after March 3, 2010 and before the date this section comes into force.

Motor Fuel Tax Act transition — penalty for failure to pay security

115  The director may impose on a vendor a penalty under section 45 (2), (3) or (5) of the Motor Fuel Tax Act, as enacted by this Act, in respect of a type or subcategory of a type of fuel sold, within British Columbia, by the vendor on or after March 3, 2010 and before the date this section comes into force.

Provincial Sales Tax Act transition — estimates of revenue
for 2014-2015 fiscal year

116  (1) This section applies if this Act receives Royal Assent after March 31, 2014.

(2) For the purpose of applying, for the 2014-2015 fiscal year, section 229.1 of the Provincial Sales Tax Act, section 9.5 (2) (b) of the Special Accounts Appropriation and Control Act, section 4 (e.1) of the Sustainable Environment Fund Act and section 35.1 of the Transportation Act, as enacted by this Act,

(a) the Minister of Finance, on or before the last day of the calendar month in which this Act receives Royal Assent, must estimate in writing the amounts described in section 229.1 (a) to (c) of the Provincial Sales Tax Act in relation to the 2014-2015 fiscal year,

(b) the amounts estimated under paragraph (a) of this subsection are deemed to be the amounts estimated under section 229.1 of the Provincial Sales Tax Act for the 2014-2015 fiscal year, and

(c) an amount payable under section 35.1 of the Transportation Act, as enacted by this Act, in the 2014-2015 fiscal year and before the date this Act receives Royal Assent is, despite that section, payable in the calendar month after that date.

Regent College Act amendment — retroactive effect

117  Section 107 of this Act is retroactive to the extent necessary to give it effect for the purposes of the 2014 taxation year.

School Act amendment — retroactive effect

118  Section 108 of this Act is retroactive to the extent necessary to give it effect for the purposes of the 2014 taxation year.

University Act amendment — retroactive effect

119  Section 113 of this Act is retroactive to the extent necessary to give it effect for the purposes of the 2014 taxation year.

Commencement

120  The provisions of this Act referred to in column 1 of the following table come into force as set out in column 2 of the table: