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

Budget Measures Implementation Act, 2000

1 Sections 28 and 31 of the Budget Measures Implementation Act, 2000, S.B.C. 2000, c. 22, are repealed.

Carbon Tax Act

2 Section 14.2 (b) of the Carbon Tax Act, S.B.C. 2008, c. 40, is amended by striking out "to the director" and substituting "to the government".

3 Section 28 is amended

(a) in subsection (3) by striking out "at the same time and in the same manner as tax collected under this Act." and substituting "at the prescribed time and in the prescribed manner.",

(b) in subsection (4) by striking out "immediately" and by adding "at the prescribed time and in the prescribed manner" after "government", and

(c) by repealing subsection (5) and substituting the following:

(5) If

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

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

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

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

4 Section 29 (a) is amended by striking out "and for the payment of the amount" and substituting "until the amount is remitted".

5 Sections 30 (1), 31 (1) and 32 (1) are amended by striking out "sold to a purchaser at that time." and substituting "sold, at that time, to a purchaser who is liable to pay tax on the purchase."

6 Section 35 is amended

(a) in subsection (6) by striking out "to the director" and substituting "to the government",

(b) in subsection (7) (a) by striking out "sold to a purchaser immediately after the increase in the rate of tax, and" and substituting "sold, immediately after the increase in the rate of tax, to a purchaser who is liable to pay tax on the purchase, and", and

(c) in subsection (10) by striking out "sold to a purchaser immediately after the decrease in the rate of tax." and substituting "sold, immediately after the decrease in the rate of tax, to a purchaser who is liable to pay tax on the purchase."

7 Section 37 is amended

(a) in subsection (2) by striking out "If the director is satisfied" and substituting "Subject to subsection (2.1), if the director is satisfied", and

(b) by adding the following subsection:

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

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

(b) in the case of a person who has paid security on coloured fuel and has subsequently sold that coloured fuel, the person has not complied with section 14.1 of the Motor Fuel Tax Act.

8 Section 44 is amended

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

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

(b) in subsection (2) by striking out "the amount of tax collected or payable or security payable" and substituting "the amount collected or payable".

9 Section 45 is amended

(a) by adding the following subsection:

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

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

(b) assess the person liable to pay the tax. ,

(b) in subsection (1) by striking out "taxes or security have not been paid or taxes have not been remitted" and substituting "security has not been paid or an amount has not been remitted",

(c) in subsection (1) (a) by striking out "tax or security not paid or tax not remitted," and substituting "security not paid or amount not remitted,",

(d) in subsection (1) (b) by striking out "liable to pay the tax or security or liable to remit the tax." and substituting "liable to pay the security or remit the amount.",

(e) by repealing subsection (1.1) and substituting the following:

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

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

(b) a penalty imposed under section 46 in an amount equal to the amount referred to in paragraph (a) of this subsection has been paid to the government, or

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

(f) by adding the following subsection:

(2.01) Subsection (2) does not apply in relation to a person who has received a refund of an amount under this Act, other than a refund of an amount under section 38 (5), or who has made a deduction of an amount under section 41 (3), to the extent that the director is satisfied that

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

(b) the person did not, in respect of the sale by that person of the fuel referred to in paragraph (a) of this subsection,

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

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

(c) in respect of the sale by the person of the fuel referred to in paragraph (a) of this subsection, or in respect of a subsequent sale of that fuel,

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

(ii) a penalty imposed under section 46 in an amount equal to the amount referred to in subparagraph (i) of this paragraph has been paid to the government, or

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

10 Section 46 (2) is amended by striking out "or" at the end of paragraph (a) and by adding the following paragraphs:

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

(d) if, in accordance with section 45 (2.01), section 45 (2) does not apply in relation to the person in respect of that fuel.

11 Section 47 (1) is amended

(a) in paragraph (a) by striking out "collected tax" and substituting "collected an amount" and by striking out "remit the tax" and substituting "remit the amount", and

(b) by repealing paragraphs (b) and (c) and substituting the following:

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

(i) evaded the payment of tax or security to the government,

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

(iii) received a refund of an amount under this Act, or deducted an amount under section 41 (3), that was in excess of the refund amount that was due to the person,

impose on the person a penalty equal to 25% of, as applicable, the amount evaded or the excess amount deducted or received;

(c) in any case other than a case referred to in paragraph (a) or (b), if the director is satisfied that a person

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

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

(iii) received a refund of an amount under this Act, or deducted an amount under section 41 (3), that was in excess of the refund amount that was due to the person,

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

12 Section 55 is amended

(a) in subsection (1) in the definition of "non-assessed amount" by adding the following paragraphs:

(c) the amount of a refund received by a person under this Act that was in excess of the refund amount that was due to the person but for which the person may not be assessed in accordance with section 45 (2.01);

(d) an amount deducted by a person under section 41 (3) that was in excess of the refund amount that was due to the person but for which the person may not be assessed in accordance with section 45 (2.01); , and

(b) by adding the following subsections:

(3.1) In relation to an amount referred to in paragraph (c) of the definition of "non-assessed amount", the director may assess interest on the amount from the date on which the refund was paid to the person until 60 days after that date.

(3.2) In relation to an amount referred to in paragraph (d) of the definition of "non-assessed amount", the director may assess interest on the amount from the date on which the tax or security required to be remitted or paid by the person for the applicable reporting period referred to in section 41 (3) (a) was due until 60 days after that date.

13 Section 59 (5) is amended

(a) by striking out "collect or remit tax, pay tax or pay security" and substituting "collect or pay tax, remit an amount or pay security", and

(b) by striking out "the amount of tax or security that should have been collected, remitted or paid" and substituting "the amount that should have been collected, paid or remitted".

14 Section 64 is amended

(a) in subsection (1) by repealing the definition of "associated corporation" and substituting the following:

"associated corporation" means a corporation that is

(a) associated with another corporation within the meaning of section 256 of the Income Tax Act (Canada), or

(b) determined under subsection (11) of this section to be associated with another corporation for the purposes of this section; ,

(b) in subsection (4) (a) (ii) by striking out "taxes" and substituting "amounts",

(c) in subsection (4) (a) by striking out "the amount of those taxes remaining uncollected or unremitted or security remaining unpaid," and substituting "the amount remaining uncollected, unremitted or unpaid,", and

(d) in subsection (11) by striking out "may determine that the corporations" and substituting "may determine that corporations".

15 Section 65 (2) is amended by striking out "collected tax or an amount as if it were tax, is required to collect or remit tax or is required to pay security" and substituting "collected tax or an amount as if it were tax or is required to collect tax, remit an amount or pay security".

Income Tax Act

16 Section 1 (1) of the Income Tax Act, R.S.B.C. 1996, c. 215, is amended in the definition of "taxation year" by striking out "and, in the case of an estate or trust arising on death, has the same meaning as in section 104 (23) of that Act".

17 Section 4.71 (6) is amended by striking out "and" at the end of paragraph (b), by adding "and" at the end of paragraph (c) and by adding the following paragraph:

(d) if, in computing a taxpayer's income for a taxation year from a business carried on by the taxpayer in Canada, an amount is included in respect of interest paid or payable to the taxpayer by a person resident in a country other than Canada, and the taxpayer has paid to the government of that other country a non-business-income tax for the taxation year with respect to the amount, the amount is, in applying the definition of "qualifying incomes" in subsection (7) for the purposes of subsection (2), deemed to be income from a source in that other country.

18 Section 8 (1) is amended by repealing the definition of "adjusted income" and substituting the following:

"adjusted income", in relation to an eligible individual for a taxation year, means the total of all amounts each of which would be the income for the year of the individual or the individual's qualified relation if, in computing that income, no amount

(a) were included in respect of a gain described in section 40 (3.21) [deemed capital gain under section 180.01] of the federal Act, and

(b) were included in respect of any gain from a disposition of property to which section 79 [surrender of property by debtor] of the federal Act applies; .

19 Section 8 (1) is amended by repealing the definition of "adjusted income" and substituting the following:

"adjusted income", in relation to an eligible individual for a taxation year, means the total of all amounts each of which would be the income for the year of the individual or the individual's qualified relation if, in computing that income, no amount

(a) were included in respect of a gain described in section 40 (3.21) [deemed capital gain under section 180.01] of the federal Act,

(b) were included in respect of any gain from a disposition of property to which section 79 [surrender of property by debtor] of the federal Act applies,

(c) were included under section 56 (6) [universal child care benefit] of the federal Act, and

(d) were deductible under section 60 (y) [repayment of universal child care benefit] of the federal Act; .

20 Section 8 (1) is amended by repealing the definition of "adjusted income" and substituting the following:

"adjusted income", in relation to an eligible individual for a taxation year, means the total of all amounts each of which would be the income for the year of the individual or the individual's qualified relation if, in computing that income, no amount

(a) were included in respect of a gain described in section 40 (3.21) [deemed capital gain under section 180.01] of the federal Act,

(b) were included in respect of any gain from a disposition of property to which section 79 [surrender of property by debtor] of the federal Act applies,

(c) were included under section 56 (6) [universal child care benefit] of the federal Act,

(d) were deductible under section 60 (y) [repayment of universal child care benefit] of the federal Act,

(e) were included under section 56 (1) (q.1) [registered disability savings plan payments] of the federal Act, and

(f) were deductible under section 60 (z) [repayment under the Canada Disability Savings Act] of the federal Act; .

21 Section 8 (1.2) is amended by striking out "and (7) (a)" and substituting "and (7)".

22 Section 97 is amended by adding the following definitions:

"first term shared-use-equipment" has the same meaning as in section 127 (9) of the federal Act;

"second term shared-use-equipment" has the same meaning as in section 127 (9) of the federal Act; .

23 Section 102.1 is amended

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

(a) the corporation acquired a particular property and the cost, or a portion of the cost, of the property

(i) was a BC qualified expenditure of the corporation in a taxation year, or

(ii) would be a BC qualified expenditure of the corporation in a taxation year if, for the purposes of the definition of "qualified expenditure" in section 97 of this Act, the federal Act were read without reference to section 127 (26) of the federal Act,

(b) the cost, or portion of the cost, of the property is an amount that

(i) was included in computing the corporation's tax credit under this Part, or

(ii) would be included in computing the corporation's tax credit under this Part if, for the purposes of the definition of "qualified expenditure" in section 97 of this Act, the federal Act were read without reference to section 127 (26) of the federal Act, and , and

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

(2) The qualifying corporation must add the lesser of the following to its tax otherwise payable for the taxation year in which the conversion or disposition described in subsection (1) (c) occurs:

(a) the amount

(i) included in the corporation's tax credit under this Part in respect of the particular property, or

(ii) that would be included in the corporation's tax credit under this Part in respect of the particular property if, for the purposes of the definition of "qualified expenditure" in section 97 of this Act, the federal Act were read without reference to section 127 (26) of the federal Act;

(b) the amount determined under subsection (2.1).

(2.1) The amount for the purpose of subsection (2) (b) is the product obtained by multiplying the percentage applied in computing the tax credit referred to in subsection (1) (b) by,

(a) in the case where the particular property or the property that incorporates the particular property is disposed of to a person who deals at arm's length with the corporation,

(i) the proceeds of disposition of the property, if the property disposed of

(A) is the particular property and is neither first term shared-use-equipment nor second term shared-use-equipment, or

(B) is the property that incorporates the particular property,

(ii) 25% of the proceeds of disposition of the property, if the property disposed of is the particular property, is first term shared-use-equipment and is not second term shared-use-equipment, and

(iii) 50% of the proceeds of disposition of the property, if the property disposed of is the particular property and is second term shared-use-equipment, and

(b) in the case where the particular property or the property that incorporates the particular property is converted to commercial use or is disposed of to a person who does not deal at arm's length with the corporation,

(i) the fair market value of the property at the time of its conversion or disposition, if the property converted or disposed of

(A) is the particular property and is neither first term shared-use-equipment nor second term shared-use-equipment, or

(B) is the property that incorporates the particular property,

(ii) 25% of the fair market value of the property at the time of its conversion or disposition, if the property converted or disposed of is the particular property, is first term shared-use-equipment and is not second term shared-use-equipment, and

(iii) 50% of the fair market value of the property at the time of its conversion or disposition, if the property converted or disposed of is the particular property and is second term shared-use-equipment.

24 Section 102.2 is amended by adding ", as that section read on March 29, 2012," after "federal Act".

25 Section 116 is amended in the definition of "government assistance" by striking out "an amount deemed to have been paid under section 127;" and by adding the following paragraphs:

(a) an amount deemed to have been paid under section 127 of this Act, or

(b) a deduction under section 127 (5) or (6) of the federal Act; .

26 Section 120 (2) (d) is amended by striking out "that is an amount" and substituting "under the Apprenticeship Incentive Grant program".

27 Section 124.1 (1) is amended by repealing the definition of "government assistance".

Insurance Premium Tax Act

28 The Insurance Premium Tax Act, R.S.B.C. 1996, c. 232, is amended by adding the following section:

Exemption – insurance fee under Legal Profession Act

5.2  Despite section 4, no tax is payable by a taxpayer who is a member of the Law Society of British Columbia in respect of an insurance fee set under section 30 (3) (a) of the Legal Profession Act.

29 Section 7 is repealed and the following substituted:

Instalment payments and interest

7  (1) If a taxpayer's tax payable for the preceding calendar year exceeds the amount prescribed by the Lieutenant Governor in Council, the taxpayer must pay to the government, on account of the taxpayer's tax payable under this Act for the current calendar year, on or before June 15, September 15 and December 15 in the current calendar year, an amount at least equal to 25% of the lesser of

(a) the taxpayer's tax payable for the preceding calendar year, and

(b) the taxpayer's estimated tax payable for the current calendar year.

(2) If a taxpayer fails to make a payment under subsection (1) on or before the date required by that subsection, the taxpayer must pay to the government interest on the amount equal to 25% of the lesser of

(a) the taxpayer's tax payable for the preceding calendar year, and

(b) the taxpayer's tax payable for the current calendar year.

(3) A taxpayer must pay interest under subsection (4) if the taxpayer makes a payment under subsection (1) on or before the date required by that subsection that is less than the amount that is equal to 25% of the lesser of

(a) the taxpayer's tax payable for the preceding calendar year, and

(b) the taxpayer's tax payable for the current calendar year.

(4) A taxpayer who must pay interest under this subsection must pay to the government interest on the amount by which the amount referred to in subsection (3) exceeds the payment referred to in that subsection.

(5) Interest payable under subsection (2) or (4)

(a) must be calculated at the rate and in the manner prescribed by the Lieutenant Governor in Council, and

(b) is payable from the date on which the taxpayer was required to make the payment under subsection (1) until the earlier of

(i) the date of payment, and

(ii) the date a return is required to be filed under section 6 (1).

Waiver or cancellation of interest

7.1  The commissioner may at any time waive or cancel all or part of any interest otherwise payable under this Act by a taxpayer.

30 Section 40 is repealed and the following substituted:

Delegation

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

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

Logging Tax Act

31 Section 2.1 (b) of the Logging Tax Act, R.S.B.C. 1996, c. 277, is amended by striking out "at the time referred to in section 15 (2) (c)" and substituting "at the time of filing the return required under section 6".

32 Section 15 is repealed and the following substituted:

Instalment payments and interest

15  (1) If a taxpayer's tax payable for the preceding taxation year exceeds the amount prescribed by the Lieutenant Governor in Council, the taxpayer must pay to the government, on account of the taxpayer's tax payable under this Act for the taxation year in respect of which the tax is payable,

(a) not later than the end of the taxation year in respect of which the tax is payable, an amount equal to

(i) 50% of the taxpayer's tax payable for the preceding taxation year, or

(ii) 50% of the taxpayer's estimated tax payable for that taxation year, and

(b) not later than the last day of the 3rd month following the month in which the taxation year in respect of which the tax is payable ended, an amount equal to

(i) 25% of the taxpayer's tax payable for the preceding taxation year, or

(ii) 25% of the taxpayer's estimated tax payable for that taxation year.

(2) If a taxpayer fails to make a payment under subsection (1) (a) on or before the date required by that subsection, the taxpayer must pay to the government interest on the amount equal to 50% of the lesser of

(a) the taxpayer's tax payable for the preceding taxation year, and

(b) the taxpayer's tax payable for the taxation year in respect of which the tax is payable.

(3) If a taxpayer fails to make a payment under subsection (1) (b) on or before the date required by that subsection, the taxpayer must pay to the government interest on the amount equal to 25% of the lesser of

(a) the taxpayer's tax payable for the preceding taxation year, and

(b) the taxpayer's tax payable for the taxation year in respect of which the tax is payable.

(4) A taxpayer must pay interest under subsection (6) if the taxpayer makes a payment under subsection (1) (a) on or before the date required by that subsection that is less than the amount that is equal to 50% of the lesser of

(a) the taxpayer's tax payable for the preceding taxation year, and

(b) the taxpayer's tax payable for the taxation year in respect of which the tax is payable.

(5) A taxpayer must pay interest under subsection (6) if the taxpayer makes a payment under subsection (1) (b) on or before the date required by that subsection that is less than the amount that is equal to 25% of the lesser of

(a) the taxpayer's tax payable for the preceding taxation year, and

(b) the taxpayer's tax payable for the taxation year in respect of which the tax is payable.

(6) A taxpayer who must pay interest under this subsection must pay to the government interest on the amount by which the amount referred to in subsection (4) or (5) exceeds the payment referred to in that subsection.

(7) Interest payable under subsection (2), (3) or (6)

(a) must be calculated at the rate and in the manner prescribed by the Lieutenant Governor in Council, and

(b) is payable from the date on which the taxpayer was required to make the payment under subsection (1) until the earlier of

(i) the date of payment, and

(ii) the date a return is required to be filed under section 6 (1).

Payment with return and interest

15.1  (1) On or before the day a taxpayer is required to file a tax return for a taxation year, the taxpayer must pay the amount remaining unpaid of the taxpayer's tax payable under this Act for the taxation year as estimated in the tax return.

(2) If, for any period that begins after the day a taxpayer is required to file a tax return for a taxation year, the taxpayer's tax payable under this Act exceeds the total of all amounts paid before that period on account of that tax payable, the taxpayer must pay to the government interest on the amount of the excess for that period calculated at the rate and in the manner prescribed by the Lieutenant Governor in Council.

Waiver or cancellation of interest

15.2  The commissioner may at any time waive or cancel all or part of any interest otherwise payable under this Act by a taxpayer.

33 Section 41 is repealed and the following substituted:

Delegation

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

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

Motor Fuel Tax Act

34 Section 4 (1.11) of the Motor Fuel Tax Act, R.S.B.C. 1996, c. 317, is amended by striking out "on or before the 15th day of the month following the month in which the gasoline is purchased," and substituting "at the prescribed time and in the prescribed manner,".

35 Section 4 (3) is amended by striking out "on or before the 15th day of the month following the month in which the gasoline is used," and substituting "at the prescribed time and in the prescribed manner,".

36 Sections 5 (1.1), 6 (1.1), 7 (1.1), 8 (1.1), 10 (1.11) and 10.1 (1.1) are amended by striking out "on or before the 15th day of the month following the month in which the fuel is purchased," and substituting "at the prescribed time and in the prescribed manner,".

37 Sections 5 (2), 6 (2) and (4), 7 (2), 8 (2) and 15 (3) are amended by striking out "on or before the 15th day of the month following the month in which the fuel is used," and substituting "at the prescribed time and in the prescribed manner,".

38 Sections 6 (3), 7 (3) and 8 (3) are amended by striking out "on or before the 15th day of the month following the month in which the fuel is transferred," and substituting "at the prescribed time and in the prescribed manner,".

39 Sections 10 (3) and 10.1 (3) are amended by striking out "on or before the 20th day of the month following the month in which the fuel is used," and substituting "at the prescribed time and in the prescribed manner,".

40 Section 10.3 (2) is amended by striking out "on or before the 15th day of the month following the month in which the propane is purchased," and substituting "at the prescribed time and in the prescribed manner,".

41 Section 10.3 (3) is amended by striking out "on or before the 15th day of the month following the month in which the propane is used," and substituting "at the prescribed time and in the prescribed manner,".

42 Sections 12.1 (2.1) and 13 (2) are amended by striking out "on or before the 15th day of the month following the month in which the gasoline or motive fuel is purchased," and substituting "at the prescribed time and in the prescribed manner,".

43 Section 13.2 (1) is amended by striking out "on or before the 15th day of the month following the month in which that fuel is used," and substituting "at the prescribed time and in the prescribed manner,".

44 Section 16.7 (5) is amended by striking out "on or before the 15th day of the month following the month in which the substance is used," and substituting "at the prescribed time and in the prescribed manner,".

45 Section 34 (7) is amended by striking out "to the minister" and substituting "to the government".

46 Section 35.1 is amended

(a) in subsection (1) by striking out "at the same time and in the same manner as tax collected under this Act." and substituting "at the prescribed time and in the prescribed manner.",

(b) in subsection (1.1) by striking out "immediately" and by adding "at the prescribed time and in the prescribed manner" after "government",

(c) by repealing subsection (1.2) and substituting the following:

(1.2) If

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

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

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

(1.3) An amount that is remitted by a collector or deputy collector under subsection (1.2) may, unless the amount is refunded under this Act, be retained by the government in satisfaction of the collector's or deputy collector's obligation to collect and remit the tax imposed by this Act on a purchaser of the fuel. , and

(d) in subsection 2 (a) by striking out "and for the payment of the amount" and substituting "until the amount is remitted".

47 Section 38 (1) is amended by striking out "the fuel were sold to a purchaser at that time." and by adding the following paragraphs:

(a) the fuel were sold at that time and in that location to a purchaser who is liable to pay tax on the purchase, and

(b) in the case of coloured fuel, the rate of tax set by section 5 (1) applied to the purchase.

48 Section 39 is amended

(a) in subsection (1) by striking out "that fuel were sold to a purchaser at that time." and by adding the following paragraphs:

(a) the fuel were sold at that time and in that location to a purchaser who is liable to pay tax on the purchase, and

(b) in the case of coloured fuel, the rate of tax set by section 5 (1) applied to the purchase. ,

(b) in subsection (3) by striking out "A collector" and substituting "Subject to section 35.1 (1.2), a collector", and

(c) in subsection (4) by striking out "is, subject to section 40.1, deemed to have satisfied the deputy collector's obligation to remit the tax that is imposed by this Act on the purchaser of the fuel." and substituting "is relieved of any obligation under section 34 (5) and (7) to remit the tax as collected on the fuel to the extent of the amount paid as security."

49 Section 40 is amended

(a) in subsection (1) by striking out "that fuel were sold to a purchaser at that time." and by adding the following paragraphs:

(a) the fuel were sold at that time and in that location to a purchaser who is liable to pay tax on the purchase, and

(b) in the case of coloured fuel, the rate of tax set by section 5 (1) applied to the purchase. ,

(b) in subsection (3) by striking out "A collector" and substituting "Subject to section 35.1 (1.2), a collector", and

(c) in subsection (4) by striking out "is, subject to section 40.1, deemed to have satisfied the retail dealer's obligation to remit the tax that is imposed by this Act on the purchaser of the fuel." and substituting "is relieved of any obligation under section 34 (6) and (7) to remit the tax as collected on the fuel to the extent of the amount paid as security."

50 Section 40.1 is amended

(a) in subsection (4) by striking out "to the director" and substituting "to the government",

(b) by repealing subsection (5) (a) and substituting the following:

(a) an amount equal to the tax that would be collectable for the fuel that was required to be included in the inventory, if

(i) that fuel were sold, immediately after the increase in the rate of tax, to a purchaser in that location who is liable to pay tax on the purchase, and

(ii) in the case of coloured fuel, the rate of tax set by section 5 (1) applied to the purchase, and , and

(c) in subsection (8) by striking out "that fuel were sold to a purchaser immediately after the decrease in the rate of tax." and by adding the following paragraphs:

(a) that fuel were sold, immediately after the decrease in the rate of tax, to a purchaser in that location who is liable to pay tax on the purchase, and

(b) in the case of coloured fuel, the rate of tax set by section 5 (1) applied to the purchase.

51 Section 42 is amended

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

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

(b) in subsection (1.1) by striking out "the amount of tax collected or payable or security payable" and substituting "the amount collected or payable".

52 Section 43 is amended

(a) by adding the following subsection:

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

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

(b) assess the person liable to pay the tax. ,

(b) in subsection (1) by striking out "taxes or security have not been paid or taxes have not been remitted" and substituting "security has not been paid or an amount has not been remitted",

(c) in subsection (1) (a) by striking out "tax or security not paid or tax not remitted," and substituting "security not paid or amount not remitted,",

(d) in subsection (1) (b) by striking out "liable to pay the tax or security or liable to remit the tax." and substituting "liable to pay the security or remit the amount.",

(e) by repealing subsection (1.1) and substituting the following:

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

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

(b) a penalty imposed under section 44 in an amount equal to the amount referred to in paragraph (a) of this subsection has been paid to the government, or

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

(f) by adding the following subsection:

(2.11) Subsection (2.1) does not apply in relation to a person who has received a refund of an amount under this Act, other than a refund of an amount under section 21 (5), or who has made a deduction of an amount under section 25 (3), to the extent that the director is satisfied that

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

(b) the person did not, in respect of the sale by that person of the fuel referred to in paragraph (a) of this subsection,

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

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

(c) in respect of the sale by the person of the fuel referred to in paragraph (a) of this subsection, or in respect of a subsequent sale of that fuel,

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

(ii) a penalty imposed under section 44 in an amount equal to the amount referred to in subparagraph (i) of this paragraph has been paid to the government, or

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

53 Section 44 (3) is amended by striking out "or" at the end of paragraph (a) and by adding the following paragraphs:

(c) if the person is assessed under section 43 (2.1) in relation to an amount refunded to the person or deducted by the person in respect of that fuel, or

(d) if, in accordance with section 43 (2.11), section 43 (2.1) does not apply in relation to the person in respect of that fuel.

54 Section 45 (1) is amended

(a) in paragraph (a) by striking out "collected tax" and substituting "collected an amount" and by striking out "remit the tax" and substituting "remit the amount", and

(b) by repealing paragraphs (b) and (c) and substituting the following:

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

(i) evaded the payment of tax or security to the government,

(ii) deducted an amount under section 21 (3) that was in excess of the amount that the person was entitled to deduct under that section, or

(iii) received a refund of an amount under this Act, or deducted an amount under section 25 (3), that was in excess of the refund amount that was due to the person,

impose on the person a penalty equal to 25% of, as applicable, the amount evaded or the excess amount deducted or received;

(c) in any case other than a case referred to in paragraph (a) or (b), if the director is satisfied that a person

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

(ii) deducted an amount under section 21 (3) that was in excess of the amount that the person was entitled to deduct under that section, or

(iii) received a refund of an amount under this Act, or deducted an amount under section 25 (3), that was in excess of the refund amount that was due to the person,

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

55 Section 48 is amended

(a) in subsection (1) in the definition of "non-assessed amount" by adding the following paragraphs:

(c) the amount of a refund received by a person under this Act that was in excess of the refund amount that was due to the person but for which the person may not be assessed in accordance with section 43 (2.11);

(d) an amount deducted by a person under section 25 (3) that was in excess of the refund amount that was due to the person but for which the person may not be assessed in accordance with section 43 (2.11); , and

(b) by adding the following subsections:

(3.1) In relation to an amount referred to in paragraph (c) of the definition of "non-assessed amount", the director may assess interest on the amount from the date on which the refund was paid to the person until 60 days after that date.

(3.2) In relation to an amount referred to in paragraph (d) of the definition of "non-assessed amount", the director may assess interest on the amount from the date on which the tax or security required to be remitted or paid by the person for the applicable reporting period referred to in section 25 (3) (a) was due until 60 days after that date.

56 Section 50 (1) (b) is amended by adding "22.1," after "22,".

57 Section 53 (5) is amended

(a) by striking out "collect or remit tax, pay tax or pay security" and substituting "collect or pay tax, remit an amount or pay security", and

(b) by striking out "the amount of tax or security that should have been collected, remitted or paid" and substituting "the amount that should have been collected, paid or remitted".

58 Section 57.1 is amended

(a) in subsection (1) by repealing the definition of "associated corporation" and substituting the following:

"associated corporation" means a corporation that is

(a) associated with another corporation within the meaning of section 256 of the Income Tax Act (Canada), or

(b) determined under subsection (11) of this section to be associated with another corporation for the purposes of this section; ,

(b) in subsection (4) (a) (ii) by striking out "taxes" and substituting "amounts",

(c) in subsection (4) (a) by striking out "the amount of those taxes remaining uncollected or unremitted or security remaining unpaid," and substituting "the amount remaining uncollected, unremitted or unpaid,", and

(d) in subsection (11) by striking out "may determine that the corporations" and substituting "may determine that corporations".

59 Section 57.2 is amended

(a) in subsection (2) by striking out "collected tax or an amount as if it were tax, is required to collect or remit tax or is required to pay security" and substituting "collected tax or an amount as if it were tax or is required to collect tax, remit an amount or pay security", and

(b) in subsection (6) (a) by striking out "collected tax, is required to collect or remit tax or is required to pay security" and substituting "collected tax or an amount as if it were tax or is required to collect tax, remit an amount or pay security".

Provincial Sales Tax Act

60 Section 88 of the Provincial Sales Tax Act, S.B.C. 2012, c. 35, is amended by adding the following subsection:

(5) Subsection (1) does not apply if the tangible personal property becomes affixed machinery when the tangible personal property is used so that it ceases to be personal property at common law.

61 Section 141 is amended

(a) in subsection (1) by adding ", other than Division 9 [Change in Use] of that Part" after "Part 3",

(b) in subsection (1) (a) (i) and (ii), (b), (c) and (d) by adding "solely" before "for the purpose",

(c) in subsection (1) (c) by striking out "subsections (3) and (4)," and substituting "subsections (3) and (5),",

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

(h) subject to subsection (6), tangible personal property that is purchased in British Columbia, brought or sent into British Columbia or delivered in British Columbia solely for the purpose of

(i) being affixed to, or installed in, a building, a structure or land so that the tangible personal property will become affixed machinery on being affixed or installed, and

(ii) retail sale or lease. ,

(e) in subsection (4) by striking out "subsection (1) (a) and (c)" and substituting "subsection (1) (a)" and by striking out "or lease" in both places, and

(f) by adding the following subsections:

(5) The exemption under subsection (1) (c) does 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 in the course of providing a related service to other tangible personal property is to retain an interest in the tangible personal property after the service has been provided.

(6) The exemption under subsection (1) (h) does 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 affixed to, or installed in, a building, a structure or land so that it becomes affixed machinery for the purpose of retail sale is to retain an interest in the tangible personal property after the retail sale.

62 The following section is added:

Exemption for affixed machinery

141.1  A lessee of tangible personal property is exempt from tax imposed under Part 3 on the lease if the lessee leases the tangible personal property solely for the purpose of

(a) affixing the tangible personal property to, or installing the tangible personal property in, a building, a structure or land so that the tangible personal property will become affixed machinery on being affixed or installed, and

(b) re-leasing the tangible personal property to other persons.

63 Section 143 is amended by adding ", other than Division 9 [Change in Use] of that Part," before "if the recording".

64 Section 145 (1) (a) is amended by striking out "141, 142 or 143" and substituting "141, 141.1, 142 or 143".

65 Section 166 (2) is repealed and the following substituted:

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

66 Section 168 (1) (h) (iii) is repealed and the following substituted:

(iii) either

(A) purchases tangible personal property in Canada for the purpose of fulfilling an agreement to sell or provide the tangible personal property to a person in British Columbia, or

(B) holds tangible personal property in inventory in Canada but outside British Columbia at the time the tangible personal property is sold or provided to a person in British Columbia.

67 Sections 171 (2) and 172 (1) are amended by striking out "to be delivered into British Columbia" wherever it appears and substituting "to be delivered in British Columbia".

68 Section 179 (1.1) is amended by striking out "to be delivered into British Columbia" and substituting "to be delivered in British Columbia".

69 Section 205 (b) and (c) is repealed and the following substituted:

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

(i) evaded the payment of tax as required under this Act,

(ii) deducted an amount under section 159 (3) [refund or deduction for bad debts] that was in excess of the amount that the person was entitled to deduct under that section, or

(iii) received a refund of an amount under this Act, or deducted an amount under section 160 (2) [refund to collector], that was in excess of the refund amount that was due to the person,

impose on the person a penalty equal to 25% of, as applicable, the amount evaded or the excess amount deducted or received;

(c) in any case other than a case referred to in paragraph (a) or (b),

(i) if the director is satisfied that a person failed to levy, remit or pay any amount as required under this Act, impose on the person a penalty equal to,

(A) in prescribed circumstances, a prescribed amount that is less than 10% of the amount not levied, remitted or paid as required under this Act, or

(B) in any other case, 10% of the amount not levied, remitted or paid as required under this Act, and

(ii) if the director is satisfied that a person

(A) deducted an amount under section 159 (3) [refund or deduction for bad debts] that was in excess of the amount that the person was entitled to deduct under that section, or

(B) received a refund of an amount under this Act, or deducted an amount under section 160 (2) [refund to collector], that was in excess of the refund amount that was due to the person,

impose on the person a penalty equal to 10% of the excess amount deducted or received.

70 Section 216 (3) is amended by striking out "fails to levy, remit or pay tax" and substituting "fails to levy or pay tax or remit an amount" and by striking out "the amount of tax that should have been levied, remitted or paid" and substituting "the amount that should have been levied, paid or remitted".

Tobacco Tax Act

71 Section 32.1 (1) of the Tobacco Tax Act, R.S.B.C. 1996, c. 452, is amended by repealing the definition of "associated corporation" and substituting the following:

"associated corporation" means a corporation that is

(a) associated with another corporation within the meaning of section 256 of the Income Tax Act (Canada), or

(b) determined under subsection (15) of this section to be associated with another corporation for the purposes of this section; .

Transitional Provisions

Carbon Tax Act transition – penalties for excess deductions and refunds

72  The director may impose on a person a penalty under section 47 (1) (b) or (c) of the Carbon Tax Act, as enacted by this Act, in respect of an amount that, within 4 years before the date this section comes into force,

(a) is deducted by the person under section 38 (3) or 41 (3) of the Carbon Tax Act, or

(b) is received as a refund by the person under the Carbon Tax Act.

Income Tax Act transition – application of section 4.71 (6) (d)

73  Section 4.71 (6) (d) of the Income Tax Act, as enacted by this Act, applies only in respect of amounts received after February 27, 2004.

Income Tax Act transition – application of section 102.1

74  (1) Section 102.1 (1) (a) and (b) and (2) of the Income Tax Act, as that section read on December 20, 2002, applies in relation to a conversion or disposition of property, described in section 102.1 (1) (c) of that Act, that occurs on or before December 20, 2002.

(2) Section 102.1 (1) (a) and (b), (2) and (2.1) of the Income Tax Act, as enacted by this Act, applies in relation to a conversion or disposition of property, described in section 102.1 (1) (c) of that Act, that occurs after December 20, 2002.

Income Tax Act transition – application of section 120 (2) (d)

75  (1) Section 120 (2) (d) of the Income Tax Act, as that section read immediately before the date this section comes into force, applies in respect of an amount received by an individual before the date this section comes into force.

(2) Section 120 (2) (d) of the Income Tax Act, as amended by this Act, applies in respect of an amount received by an individual on or after the date this section comes into force.

Logging Tax Act transition

76  (1) Section 15 of the Logging Tax Act, as that section read on December 31, 2015, continues to apply in respect of a taxation year beginning on or before December 31, 2015.

(2) Sections 15, 15.1 and 15.2 of the Logging Tax Act, as enacted by this Act, apply in respect of a taxation year beginning on or after January 1, 2016.

Motor Fuel Tax Act transition – penalties for excess deductions and refunds

77  The director may impose on a person a penalty under section 45 (1) (b) or (c) of the Motor Fuel Tax Act, as enacted by this Act, in respect of an amount that, within 4 years before the date this section comes into force,

(a) is deducted by the person under section 21 (3) or 25 (3) of the Motor Fuel Tax Act, or

(b) is received as a refund by the person under the Motor Fuel Tax Act.

Provincial Sales Tax Act transition – penalties for excess
deductions and refunds

78  The director may impose on a person a penalty under section 205 (b) or (c) of the Provincial Sales Tax Act, as enacted by this Act, in respect of an amount that, on or after April 1, 2013 and before the date this section comes into force,

(a) is deducted by the person under section 159 (3) or 160 (2) of the Provincial Sales Tax Act, or

(b) is received as a refund by the person under the Provincial Sales Tax Act.

Commencement

79  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: