Bill 2 – 2017: Budget Measures Implementation Act, 2017

HONOURABLE CAROLE JAMES
MINISTER OF FINANCE
AND DEPUTY PREMIER

BILL 2 – 2017

BUDGET MEASURES IMPLEMENTATION ACT, 2017

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

SECTION 1: [North Island-Coast Development Initiative Trust Act, section 17]

increases by $10 million the total amount that may be paid by the government to the North Island-Coast Development Initiative Trust;
clarifies powers and duties of the directors in relation to the receipt, deposit, investment and use of money paid by the government to the North Island-Coast Development Initiative Trust and in relation to the investment of other money in the Regional Account.

1 Section 17 of the North Island-Coast Development Initiative Trust Act, S.B.C. 2005, c. 36, is amended

(b) in subsection (1) by striking out "$50 million" and substituting "$60 million", and

(2) Section 7 (2) (b), (c) and (d) applies to the directors of the North Island-Coast Development Initiative Trust.

SECTION 2: [Transportation Investment Act, section 24.1] is consequential to the amendment to section 24.3 (2) of the Act by this Bill.

2 Section 24.1 of the Transportation Investment Act, S.B.C. 2002, c. 65, is amended in the definition of "director" by striking out "by the Lieutenant Governor in Council".

SECTION 3: [Transportation Investment Act, section 24.2] provides for the share in the Transportation Investment Corporation to be registered in the name of and held by the BC Transportation Financing Authority.

(3) The share in the corporation must be registered in the name of and held by the BC Transportation Financing Authority.

SECTION 4: [Transportation Investment Act, section 24.3]

(a) provides for directors of the Transportation Investment Corporation to be appointed by the board of directors of the BC Transportation Financing Authority, and

(b) removes the requirement that the board elect a vice chair.

(a) in subsection (2) by striking out "the Lieutenant Governor in Council" and substituting "the board of directors of the BC Transportation Financing Authority", and

SECTION 5: [Transportation Investment Act, section 24.33] repeals a section respecting meetings of the board.

SECTION 6: [Transportation Investment Act, section 24.34] is consequential to the repeal of section 24.33 of the Act by this Bill.

Transitional Provisions

SECTION 7: [Transition – presentation and reporting obligations for 2017-2018 fiscal year] clarifies which main estimates and other documents are to be used for the purposes of the Budget Transparency and Accountability Act, the Balanced Budget and Ministerial Accountability Act and the Carbon Tax Act in relation to the 2017-2018 fiscal year.

Transition – presentation and reporting
obligations for 2017-2018 fiscal year

7 (1) In this section, "new main estimates" means the main estimates for the 2017-2018 fiscal year presented under section 6 (2) of the Budget Transparency and Accountability Act.

(2) The new main estimates, and the documents presented or made public in relation to the new main estimates under

of the Budget Transparency and Accountability Act, are the ones that apply for the purposes of Part 2 [Fiscal Reports] and Part 4 [Service Plan Reports] of that Act in relation to the 2017-2018 fiscal year.

(3) The new main estimates are the ones that apply for the purposes of the Balanced Budget and Ministerial Accountability Act in relation to the 2017-2018 fiscal year.

(4) The new main estimates are the ones that apply for the purposes of the Carbon Tax Act in relation to the 2017-2018 fiscal year.

(5) The carbon tax plan presented to the Legislative Assembly with the new main estimates is deemed to be a carbon tax plan referred to in section 3 of the Carbon Tax Act.

(6) The documents presented under section 4 of the Carbon Tax Act with the new main estimates are the ones that apply for the purposes of the Carbon Tax Act in relation to the 2017-2018 fiscal year.

SECTION 8: [Transportation Investment Act transition]

provides for the transfer of the share in the Transportation Investment Corporation to the BC Transportation Financing Authority;
provides that the share transfer effected by this Bill will not constitute a breach or contravention of any security agreements or other agreements or records, and will not entitle any person to damages or compensation or to terminate any security agreement or other agreement or record.

Transportation Investment Act transition

8 (1) The share in the Transportation Investment Corporation is transferred from the Minister of Transportation and Infrastructure to, and is vested in, the BC Transportation Financing Authority without an appropriation other than this section.

(2) Despite any provision to the contrary in a security agreement or other agreement or record, the transfer of the share referred to in subsection (1) does not constitute a breach or contravention of, or a default under, the security agreement or other agreement or record and, without limiting this, does not entitle any party to any security agreement or other agreement or record to claim any damages or compensation or to terminate the security agreement or other agreement or record.

SECTION 9: [Carbon Tax Act, section 1] amends the definition of "scheduled rate change" consequential to proposed modifications in a rate of tax set out in the Table in Schedule 1 that are to come into effect as of April 1 of a year.

9 Section 1 (1) of the Carbon Tax Act, S.B.C. 2008, c. 40, is amended by repealing the definition of "scheduled rate change" and substituting the following:

"scheduled rate change" means a modification in a rate of tax set out in the Table in Schedule 1 that comes into effect

SECTION 10: [Carbon Tax Act, Part 2] repeals provisions respecting plans and reports.

SECTION 11: [Carbon Tax Act, Schedule 1] provides for an end date for the period starting July 1, 2012 in relation to the rate of tax payable with respect to fuel.

11 The Table in Schedule 1 is amended by repealing the heading to Column 8 and substituting the following:

Rate of tax for the period starting July 1, 2012 and ending March 31, 2018 .

SECTION 12: [Carbon Tax Act, Schedule 1] sets out the tax rates for fuels that apply for the year starting April 1, 2018 and each subsequent year starting April 1.

12 Schedule 1 is amended by adding the following as a continuation of the existing Table:

SECTION 13: [Carbon Tax Act, Schedule 2] provides for an end date for the period starting July 1, 2012 in relation to the rate of tax payable with respect to combustibles.

13 The Table in Schedule 2 is amended by repealing the heading to Column 7 and substituting the following:

Rate of tax for the period starting on July 1, 2012 and ending on March 31, 2018 .

SECTION 14: [Carbon Tax Act, Schedule 2] sets out the tax rates for combustibles that apply for the year starting April 1, 2018 and each subsequent year starting April 1.

14 Schedule 2 is amended by adding the following as a continuation of the existing Table:

SECTION 15: [Home Owner Grant Act, section 13.1]

adds authority for some uses and disclosures, and excludes from those permitted uses and disclosures information that was collected as a result of disclosure under the Income Tax Act;
adds authority for use and disclosure of information collected under the Act for the administration and enforcement of the Income Tax Act.

(a) in subsection (1) in paragraph (b) of the definition of "shared information" by adding "section 64 of the Income Tax Act," before "section 32 of the Property Transfer Tax Act",

(b) in subsection (2) (b) by striking out "or" at the end of subparagraph (iii) and by adding the following subparagraph:

(c) in subsection (3) by striking out "Subject to subsection (5)" and substituting "Subject to subsections (3.1) and (5)", and

(3.1) Subsection (3) does not permit a ministry person to use or disclose shared information collected as a result of a disclosure under the Income Tax Act if that use or disclosure is

(a) for the purposes of administering or enforcing the Land Tax Deferment Act, or

SECTION 16: [Income Tax Act, section 4.1] establishes a personal income tax bracket for taxable income that exceeds $150 000.

(a) in subsection (1) (e) by striking out "if the taxable income exceeds $85 000," and substituting "if the taxable income exceeds $85 000 and does not exceed $150 000,",

(b) in subsection (1) (e) (ii) by striking out "that exceeds $85 000." and substituting "that exceeds $85 000 and does not exceed $150 000;",

(i) the highest amount that might be determined for an individual under paragraph (e) of this subsection,

(d) in subsection (2) by striking out "subsection (1) (b) (i), (c) (i), (d) (i) and (e) (i), the highest amount that might be determined for an individual under subsection (1) (a), (b), (c) or (d)," and substituting "subsection (1) (b) (i), (c) (i), (d) (i), (e) (i) and (g) (i), the highest amount that might be determined for an individual under subsection (1) (a), (b), (c), (d) or (e),".

SECTION 17: [Income Tax Act, section 4.34] provides for the child fitness credit to be claimed under the Act for the 2017 taxation year, despite the repeal on January 1, 2017 of section 122.8 [child fitness tax credit] of the Income Tax Act (Canada).

Child fitness credit

4.34 (1) In this section, "eligible fitness expense" and "qualifying child" have the same meaning as in section 122.8 (1) of the federal Act, as that section, and any regulations referred to in that section, read on December 31, 2016.

(2) For the purpose of computing the tax payable under this Act for a taxation year by an individual who was resident in British Columbia on the last day of the taxation year, there may be deducted the amount determined by the formula

(3) For the purpose of computing the tax payable under this Act for a taxation year by an individual who was resident in British Columbia on the last day of the taxation year, there may be deducted in respect of a qualifying child of the individual the amount equal to $500 multiplied by the appropriate percentage for the year, if

(a) the amount referred to in the description of "B" in subsection (2) is $100 or more, and

(b) an amount is deductible in respect of the qualifying child under section 118.3 of the federal Act in computing any person's tax payable under Part I of that Act for the year.

(4) If more than one individual is entitled to a deduction under this section for a taxation year in respect of a qualifying child,

(a) the total of all amounts deducted by the individuals under this section in respect of the qualifying child must not exceed the maximum amount that would be deductible for the year by any one of the individuals in respect of that qualifying child if that individual were the only individual entitled to deduct an amount under this section, and

(b) if the individuals cannot agree as to what portion of the total amount each individual can deduct under this section, the minister may fix the portions.

SECTION 18: [Income Tax Act, sections 4.34 and 4.341] repeals the child fitness credit and child fitness equipment credit in respect of the 2018 taxation year and subsequent taxation years.

SECTION 19: [Income Tax Act, section 4.35] provides for the child arts credit to be claimed under the Act for the 2016 and 2017 taxation years, as if section 118.031 (2) [children's art tax credit] of the Income Tax Act (Canada) had not been amended in respect of the 2016 taxation year and despite the repeal on January 1, 2017 of section 118.031 of that Act.

Child arts credit

"eligible expense" has the same meaning as in section 118.031 (1) of the federal Act, as that section, and any regulations referred to in that section, read on December 31, 2016;

"qualifying child" has the same meaning as in section 122.8 (1) of the federal Act, as that section read on December 31, 2016.

(a) the amount referred to in the description of "B" in the formula in subsection (2) is $100 or more, and

(b) an amount is deductible in respect of the qualifying child under section 118.3 of the federal Act in computing any person's tax payable under Part I of that Act for the year.

(4) If more than one individual is entitled to a deduction under this section for a taxation year in respect of a qualifying child,

(b) if the individuals cannot agree as to what portion of the total amount each individual can deduct under this section, the minister may fix the portions.

SECTION 20: [Income Tax Act, section 4.35] repeals the child arts credit in respect of the 2018 taxation year and subsequent taxation years.

SECTION 21: [Income Tax Act, section 4.351] establishes a new BC back-to-school tax credit for the 2016 taxation year.

BC back-to-school tax credit

4.351 (1) In this section, "qualifying child", in respect of an individual for a taxation year, means a child of the individual who is, immediately before the beginning of the calendar year in which the taxation year ends, at least 4 years of age but less than 17 years of age.

(3) If more than one individual is entitled to a deduction under this section for a taxation year that ends in a calendar year in respect of a qualifying child, only one of those individuals may deduct an amount under this section for any taxation year that ends in the calendar year in respect of the qualifying child.

(4) If the individuals referred to in subsection (3) cannot agree which of those individuals may deduct an amount under this section in respect of the qualifying child, the minister may designate an individual who may deduct an amount under this section in respect of that qualifying child.

SECTION 22: [Income Tax Act, section 4.351] repeals the BC back-to-school tax credit.

SECTION 23: [Income Tax Act, section 4.37] establishes a new tax credit for volunteer firefighters and search and rescue volunteers.

Tax credit for volunteer firefighters and
search and rescue volunteers

4.37 (1) For the purpose of computing the tax payable under this Act for a taxation year by an individual who was resident in British Columbia on the last day of the taxation year and who is entitled to a deduction under section 118.06 (2) or 118.07 (2) of the federal Act for the year, there may be deducted an amount determined by multiplying $3 000 by the appropriate percentage for the year.

(2) If an amount is not included in computing the individual's income for a taxation year because of section 81 (4) of the federal Act, no deduction may be made under this section in computing the tax payable by the individual for the taxation year.

SECTION 24: [Income Tax Act, section 4.51] is consequential to the addition by this Bill of section 4.351 to the Act.

(a) in subsection (2) (b) by adding "4.351 [BC back-to-school tax credit]," after "4.35 [child arts credit],", and

(b) in subsection (4) in the description of "T" by adding "4.351 [BC back-to-school tax credit]," after "4.35 [child arts credit],".

SECTION 25: [Income Tax Act, section 4.51] is consequential to the repeal by this Bill of section 4.351 of the Act and the addition by this Bill of section 4.37 to the Act.

(a) in subsection (2) (b) by striking out "4.351 [BC back-to-school tax credit], 4.36 [BC education coaching tax credit]" and substituting "4.36 [BC education coaching tax credit], 4.37 [tax credit for volunteer firefighters and search and rescue volunteers]", and

(b) in subsection (4) in the description of "T" by striking out "4.351 [BC back-to-school tax credit], 4.36 [BC education coaching tax credit]" and substituting "4.36 [BC education coaching tax credit], 4.37 [tax credit for volunteer firefighters and search and rescue volunteers]".

SECTION 26: [Income Tax Act, sections 4.51, 4.65, 4.66, 4.74 and 4.76] is consequential to the repeal by this Bill of sections 4.34, 4.341 and 4.35 of the Act.

26 The following sections are amended by striking out "4.34 [child fitness credit], 4.341 [child fitness equipment credit], 4.35 [child arts credit],":

SECTION 27: [Income Tax Act, section 4.52] is consequential to the enactment by this Bill of section 4.1 (1) (g) of the Act.

(4.22) For the purpose of computing the tax payable by an individual for the 2018 taxation year, each amount expressed in dollars in a relevant provision is to be adjusted in accordance with subsection (2), except the amount of $150 000 referred to in section 4.1 (1) (e) and (g).

SECTION 28: [Income Tax Act, section 4.62] is consequential to the addition by this Bill of section 4.351 to the Act.

(b) in subsection (2) in the description of "C" by adding the following paragraph:

SECTION 29: [Income Tax Act, section 4.62] is consequential to the repeal by this Bill of section 4.351 of the Act and the addition by this Bill of section 4.37 to the Act.

(iii.5) section 4.37 [tax credit for volunteer firefighters and search and rescue volunteers]; , and

(c.5) section 4.37 [tax credit for volunteer firefighters and search and rescue volunteers]; .

SECTION 30: [Income Tax Act, section 4.62] is consequential to the repeal by this Bill of sections 4.34, 4.341 and 4.35 of the Act.

(a) in subsection (1) (b) by repealing subparagraphs (iii.2), (iii.21) and (iii.3), and

(b) in subsection (2) in the description of "C" by repealing paragraphs (c.2), (c.21) and (c.3).

SECTION 31: [Income Tax Act, section 4.65] is consequential to the addition by this Bill of section 4.351 to the Act.

31 Section 4.65 is amended in paragraphs (a) and (b) (ii) of the description of "C" by adding "4.351 [BC back-to-school tax credit]," after "4.35 [child arts credit],".

SECTION 32: [Income Tax Act, section 4.65] is consequential to the repeal by this Bill of section 4.351 of the Act and the addition by this Bill of section 4.37 to the Act.

32 Section 4.65 is amended in paragraphs (a) and (b) (ii) of the description of "C" by striking out "4.351 [BC back-to-school tax credit]," and by adding "4.37 [tax credit for volunteer firefighters and search and rescue volunteers]," after "4.36 [BC education coaching tax credit],".

SECTION 33: [Income Tax Act, section 4.66] is consequential to the addition by this Bill of section 4.351 to the Act.

33 Section 4.66 (a) is amended in the description of "B" by adding "4.351 [BC back-to-school tax credit]," after "4.35 [child arts credit],".

SECTION 34: [Income Tax Act, section 4.66] is consequential to the repeal by this Bill of section 4.351 of the Act and the addition by this Bill of section 4.37 to the Act.

34 Section 4.66 (a) is amended in the description of "B" by striking out "4.351 [BC back-to-school tax credit]," and by adding "4.37 [tax credit for volunteer firefighters and search and rescue volunteers]," after "4.36 [BC education coaching tax credit],".

SECTION 35: [Income Tax Act, section 4.69] reduces for the 2017 and subsequent taxation years the percentage applied in determining the dividend tax credit for dividends other than eligible dividends.

SECTION 36: [Income Tax Act, section 4.69] increases from 36 6/19% to 43 11/19% the percentage applied in determining the dividend tax credit for eligible dividends for the 2019 and subsequent taxation years.

36 Section 4.69 (b) is amended by striking out "36 6/19%" and substituting "43 11/19%".

SECTION 37: [Income Tax Act, section 4.721] amends the definition of "BC flow-through mining expenditure" to extend by one year the time frame in which expenses referred to in the definition are incurred and makes consequential amendments.

(a) in subsection (1) in paragraph (d) of the definition of "BC flow-through mining expenditure" by striking out "before 2017" and substituting "before 2018", and

(b) in subsection (1.1) by striking out "before 2017" in both places and substituting "before 2018".

SECTION 38: [Income Tax Act, sections 4.74 and 4.76] is consequential to the addition by this Bill of section 4.37 to the Act.

38 Sections 4.74 (a) and 4.76 (1) (b) (i) are amended by adding "4.37 [tax credit for volunteer firefighters and search and rescue volunteers]," after "4.36 [BC education coaching tax credit],".

SECTION 39: [Income Tax Act, sections 4.74 and 4.76] is consequential to the addition by this Bill of section 4.351 to the Act.

39 Sections 4.74 (b) and 4.76 (1) (b) (ii) are amended by adding "4.351 [BC back-to-school tax credit]," after "4.31 [age credit],".

SECTION 40: [Income Tax Act, sections 4.74 and 4.76] is consequential to the repeal by this Bill of section 4.351 of the Act.

40 Sections 4.74 (b) and 4.76 (1) (b) (ii) are amended by striking out "4.351 [BC back-to-school tax credit],".

SECTION 41: [Income Tax Act, section 4.78] is consequential to the addition by this Bill of section 4.351 to the Act.

SECTION 42: [Income Tax Act, section 4.78] is consequential to the addition by this Bill of section 4.37 to the Act.

(c.5) section 4.37 [tax credit for volunteer firefighters and search and rescue volunteers]; .

SECTION 43: [Income Tax Act, section 4.78] is consequential to the repeal by this Bill of sections 4.34, 4.341 and 4.35 of the Act.

SECTION 44: [Income Tax Act, section 4.78] is consequential to the repeal by this Bill of section 4.351 of the Act.

SECTION 45: [Income Tax Act, section 4.79] is consequential to the addition by this Bill of section 4.351 to the Act.

SECTION 46: [Income Tax Act, section 4.79] is consequential to the repeal by this Bill of section 4.351 of the Act and to the addition by this Bill of section 4.37 to the Act.

(d.5) section 4.37 [tax credit for volunteer firefighters and search and rescue volunteers]; .

SECTION 47: [Income Tax Act, section 4.79] is consequential to the repeal by this Bill of sections 4.34, 4.341 and 4.35 of the Act.

SECTION 48: [Income Tax Act, sections 14, 16 and 25] increases from 11% to 12% the corporate income tax rate established by section 14 (2) of the Act.

48 Sections 14 (2) and (3.1) (a), 16 (1) (b) and (2) (b) and 25 (2) are amended by striking out "11%" and substituting "12%".

SECTION 49: [Income Tax Act, section 16] reduces the small business corporate tax rate from 2.5% to 2% effective April 1, 2017.

49 Section 16 (1) (a) and (b), (2) (a) and (b) and (4) is amended by striking out "2.5%" and substituting "2%".

SECTION 50: [Income Tax Act, section 16] ends the phase-out of the preferential tax rate for credit unions.

(b) by repealing subparagraphs (iii) to (vi) of the description of "E" and substituting the following:

(iii) for any taxation year, or part of a taxation year, that is after December 31, 2016, the applicable amount for that taxation year or part is determined by dividing the number of days in the taxation year that are after December 31, 2016 by the total number of days in that taxation year, and .

SECTION 51: [Income Tax Act, section 25.1] is consequential to the amendment made by this Bill to section 4.721 of the Act.

(a) in paragraph (f.2) (i) of the definition of "excluded expense" by striking out "before January 1, 2017" and substituting "before January 1, 2018", and

(b) in paragraph (f.2) (ii) of the definition of "excluded expense" by striking out "after December 31, 2016" and substituting "after December 31, 2017" and by striking out "before January 1, 2018" and substituting "before January 1, 2019".

SECTION 52: [Income Tax Act, section 25.1]

amends the definition of "excluded expense" to add an exception for expenses incurred after February 28, 2015 in relation to environmental studies or community consultations;
amends the definition of "qualified mining exploration expense" to include expenses incurred after February 28, 2015 in relation to environmental studies or community consultations;
is consequential to the amendment made by this Bill to the definition of "qualified mining exploration expense".

(a) in subsection (1) in paragraph (a) of the definition of "excluded expense" by adding "other than an expense incurred after February 28, 2015 for environmental studies or community consultations undertaken to obtain a right, licence or privilege for the purpose of determining the existence, location, extent or quality of a mineral resource in British Columbia," after "the federal Act,",

(b) in subsection (1) in paragraph (c) of the definition of "qualified mining exploration expense" by striking out everything after "including" and substituting the following:

(i) such an expense incurred after February 28, 2015 for environmental studies or community consultations, including environmental studies or community consultations undertaken to obtain a right, licence or privilege for the purpose of determining the existence, location, extent or quality of a mineral resource in British Columbia, and

SECTION 53: [Income Tax Act, section 64] adds authorization for the provision of taxpayer information for the administration and enforcement of the Home Owner Grant Act.

(iii.3) to an official solely for the purposes of the administration or enforcement of the Home Owner Grant Act, including for greater certainty a purpose set out in section 13.1 (3) (b) (ii) or (iii) or (c) of that Act, except in respect of court proceedings related to the Land Tax Deferment Act, .

SECTION 54: [Income Tax Act, section 77.2] adds a requirement that the British Columbia Assessment Authority provide the Minister of National Revenue and the Commissioner of Income Tax assistance and access to its records at no charge.

British Columbia Assessment Authority must provide information

77.2 The British Columbia Assessment Authority must provide, without charge, assistance and access to its records to the minister and the Commissioner of Income Tax.

SECTION 55: [Income Tax Act, section 97] extends by 5 years the availability of the scientific research and experimental development tax credit.

55 Section 97 is amended in paragraph (b) of the definition of "BC qualified expenditure" by striking out "September 1, 2017" and substituting "September 1, 2022".

SECTION 56: [Income Tax Act, section 111] extends by one year the availability of the book publishing tax credit.

56 Section 111 (1) is amended in the definition of "CBF contribution" by striking out "April 1, 2017" and substituting "April 1, 2018".

SECTION 57: [Income Tax Act, section 117] extends by one year the availability of the training tax credit for eligible individuals.

57 Section 117 is amended by striking out "January 1, 2018" and substituting "January 1, 2019".

SECTION 58: [Income Tax Act, section 121] extends by one year the availability of the training tax credit for eligible employers.

58 Section 121 is amended by striking out "December 31, 2017" and substituting "December 31, 2018".

SECTION 59: [Income Tax Act, section 133]

amends the eligibility criteria for the interactive digital media tax credit to provide that corporations with eligible salary and wages of greater than $2 million are eligible for the tax credit without having to meet the principal business criteria;
allows corporations registered under Part 2 of the Small Business Venture Capital Act to be eligible for the interactive digital media tax credit under Part 10 of the Income Tax Act.

(i) the corporation's eligible salary and wages, as determined under section 134 (2) for the taxation year, is equal to or greater than $2 million;

(ii) the corporation's eligible salary and wages, as determined under section 134 (2) for the taxation year, is greater than $100 000 and less than $2 million and either of the following applies:

(A) the corporation's principal business in the taxation year is the development of interactive digital media products;

(B) all or substantially all of the corporation's business in the taxation year consists of one or both of the following:

(II) the provision of eligible activities to one or more recipient corporations that meet the criteria set out in subsection (1.1) of this section. ,

(1.1) The criteria for the purposes of subsection (1) (d) (ii) (B) (II) are as follows:

(a) the recipient corporation has a permanent establishment in British Columbia;

(b) in a taxation year of the recipient corporation that includes any part of the taxation year of the corporation that is providing the eligible activities,

(i) the principal business of the recipient corporation is the development of interactive digital media products, or

(ii) the eligible salary and wages of the recipient corporation, as determined under section 134 (2), is equal to or greater than $2 million. ,

(a) the reference in subsection (1) (d) (i) and (ii) to $2 million is to be read in respect of the corporation as a reference to the amount equal to that proportion of $2 million that the number of days in the taxation year bears to 365, and

(b) the reference in subsection (1) (d) (ii) to $100 000 is to be read in respect of the corporation as a reference to the amount equal to that proportion of $100 000 that the number of days in the taxation year bears to 365.

(2.1) If a recipient corporation has a taxation year of less than 365 days, the reference in subsection (1.1) (b) (ii) to $2 million is to be read in respect of the recipient corporation as a reference to the amount equal to that proportion of $2 million that the number of days in the taxation year bears to 365. ,

(e) in subsection (3) (h) by striking out "paragraphs (a) to (g)" and substituting "paragraphs (a) to (f)".

SECTION 60: [International Business Activity Act, section 8] provides that the Act does not apply to taxation years beginning after September 11, 2017.

60 Section 8 of the International Business Activity Act, S.B.C. 2004, c. 49, is amended by adding the following subsection:

(3) This Act does not apply to a corporation or an individual for taxation years beginning after September 11, 2017.

SECTION 61: [International Business Activity Act, Division 0.1 of Part 2] provides the following:

a corporation or individual may not be registered unless any required applications, notices, information, records and fees are submitted on or before September 11, 2017;
a registered corporation is not required to meet specified requirements after September 11, 2017 and the registration of the corporation may not be suspended or cancelled only because the corporation fails to meet those requirements after that date.

No registrations after September 11, 2017

8.1 (1) Despite Divisions 1 [Corporations] and 2 [Individuals], after September 11, 2017,

(a) an application for registration of a corporation may not be made under section 9 [application for registration],

(b) a corporation may not be registered under section 10 (1) [registration] unless the corporation submits, on or before September 11, 2017, the application for registration and any information, records or fees required under section 9,

(c) if 2 or more corporations to which section 10 (2) applies have amalgamated, the new corporation may not be registered under that section unless

(ii) the new corporation submits, within 90 days after the date of amalgamation, the notice and any information or records required under section 10 (2) (a),

(d) if 2 or more corporations to which section 10 (3) applies have amalgamated, the new corporation may not be registered under that section unless the date of amalgamation is on or before September 11, 2017,

(ii) section 13.1 [application for registration of administrative support specialists],

(iii) section 13.2 [application for registration of executive specialists], or

(iv) section 13.3 [application for registration of specialists in designated international business], and

(f) an individual may not be registered under section 14 [registration of IB specialist] unless the corporation applying for registration submits, on or before September 11, 2017, the application for registration and any information or records required under section 13.4 [general rules for applications for specialist].

(2) Despite Divisions 1 and 2, a notice of refusal of registration is not required in relation to a registration that may not be made as a result of this section.

Conditions of registration after September 11, 2017

8.2 (1) Despite section 11 (1) [conditions of registration], after September 11, 2017, a registered corporation is not required to

(a) continue to meet the requirements of section 9 (1) [application for registration],

(2) Despite section 12 [suspension or cancellation of registration and refusal to register], the commissioner may not suspend or cancel the registration of a corporation only because the corporation, after September 11, 2017, fails to meet any of the requirements referred to in subsection (1) of this section.

SECTION 62: [International Business Activity Act, section 17.1] provides that, for taxation years that include September 11, 2017, an eligible refund is to be calculated based only on the number of days before September 12, 2017 that the corporation was a registered corporation.

(a) in subparagraph (i) by striking out "subject to subparagraph (ii)," and substituting "subject to subparagraphs (ii) and (iii),", and

(iii) if the taxation year includes September 11, 2017, the number of days in the taxation year before September 12, 2017 that the corporation was a registered corporation; .

SECTION 63: [International Business Activity Act, sections 19, 19.001, 19.01 and 19.02] provides that, for taxation years that include September 11, 2017, IB income for a corporation is to be calculated based only on that part of the taxation year that is before September 12, 2017 and during which the corporation was a registered corporation.

63 Sections 19, 19.001, 19.01 (2) and 19.02 are amended in the description of "IB income" by striking out "that part of the taxation year that the corporation was a registered corporation;" and substituting "that part of the taxation year that is before September 12, 2017 and during which the corporation was a registered corporation;".

SECTION 64: [International Business Activity Act, section 19.03] is consequential to amendments made by this Bill to sections 19, 19.001, 19.01 and 19.02 of the Act.

(a) in subsections (2) and (3) by striking out "for the taxation year that" and substituting "for that part of the taxation year that is before September 12, 2017 that", and

(b) in subsections (2) (b) and (3) (b) by striking out "for all or part of the year during which the individual was registered," and substituting "for all or part of the taxation year that is before September 12, 2017 and during which the individual was registered,".

SECTION 65: [International Business Activity Act, section 21] provides that, for taxation years that include September 11, 2017, the requirements in subsections (2) to (8) of that section must be met in respect of that part of the taxation year that is before September 12, 2017 and during which the individual was registered.

(a) in subsections (2), (3), (4) and (5) by striking out "for the part of the taxation year the individual was an IB specialist," and substituting "for the part of the taxation year that is before September 12, 2017 and during which the individual was an IB specialist,", and

(9) Despite subsections (7) and (8), if the taxation year referred to in either of those subsections includes September 11, 2017, an individual must have received, before September 12, 2017, remuneration that is,

(a) in the case of an individual to whom subsection (7) applies, $274 or more for each day in the taxation year before September 12, 2017 during which the individual was registered, and

(b) in the case of an individual to whom subsection (8) applies, $685 or more for each day in the taxation year before September 12, 2017 during which the individual was registered.

SECTION 66: [International Business Activity Act, section 23] provides that, for taxation years that include September 11, 2017, IB income for an individual is to be calculated based only on that part of the taxation year that is before September 12, 2017 and during which the corporation was a registered corporation.

(a) by striking out "for that part of the taxation year that the corporation was a registered corporation" and substituting "for that part of the taxation year that is before September 12, 2017 and during which the corporation was a registered corporation", and

(b) by striking out "the federal Act;" and substituting "the federal Act for that part of the taxation year that is before September 12, 2017;".

SECTION 67: [International Business Activity Act, sections 24 and 28] removes the discretion of the commissioner to extend the deadline for filing returns.

67 Sections 24 (1) and 28 (4) (a) (i) are amended by striking out "or within a later period approved by the commissioner".

SECTION 68: [Motor Fuel Tax Act, section 1] amends the definition of "locomotive fuel" to exclude natural gas.

68 Section 1 of the Motor Fuel Tax Act, R.S.B.C. 1996, c. 317, is amended in the definition of "locomotive fuel" by adding "and natural gas" after "propane".

SECTION 69: [Property Transfer Tax Act, section 4] increases by $25 000 the dollar amount in respect of which the first time home buyer tax exemption may be applied.

69 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 "$475 000" and substituting "$500 000".

SECTION 70: [Provincial Sales Tax Act, section 34] provides for a rate of tax on the purchase price of electricity.

70 Section 34 of the Provincial Sales Tax Act, S.B.C. 2012, c. 35, is amended by adding the following subsection:

(10) The rate of tax payable under sections 37, 49 (6) (a), 52, 81, 82, 84 and 86 on electricity is 3.5% of the purchase price of the electricity.

SECTION 71: [Provincial Sales Tax Act, section 34] repeals the rate of tax on the purchase price of electricity.

SECTION 72: [Provincial Sales Tax Act, section 36] provides for a rate of tax on the fair market value of electricity.

(10) The rate of tax payable under section 49 (6) (c) on electricity is 3.5% of the fair market value of the electricity on the entry date of the electricity.

SECTION 73: [Provincial Sales Tax Act, section 36] repeals the rate of tax on the fair market value of electricity.

SECTION 74: [Provincial Sales Tax Act, section 140.1] provides for an exemption from tax imposed under Part 3 of the Act on electricity.

Exemption in relation to electricity

SECTION 75: [Provincial Sales Tax Act, section 141] is consequential to the addition by this Bill of section 140.1 to the Act.

75 Section 141 (3) is amended by striking out ", other than electricity used in an electrolytic process,".

SECTION 76: [Tobacco Tax Act, section 2] increases the tax on cigarettes to 24.7¢ per cigarette and the tax on tobacco, other than cigars or cigarettes, to 24.7¢ per gram.

76 Section 2 (2) and (3) of the Tobacco Tax Act, R.S.B.C. 1996, c. 452, is amended by striking out "23.9¢" and substituting "24.7¢".

Transitional Provisions

SECTION 77: [Provincial Sales Tax Act transition – applicable rate for electricity] provides for the implementation of the new rates of tax on electricity, added to the Act by this Bill.

Provincial Sales Tax Act transition –
applicable rate for electricity

"transition date" means the date section 34 (10) of the Act comes into force.

(2) For the purposes of section 37 of the Act, the applicable rate under section 34 (10) of the Act does not apply in respect of any consideration for the purchase of electricity that, before the transition date, becomes due or is paid without having become due.

(3) If all or any portion of the consideration for the purchase of electricity is not ascertainable before the transition date, for the purposes of section 37 of the Act, the applicable rate under section 34 (10) of the Act applies in respect of that or any portion of that consideration that becomes ascertainable on or after the transition date.

(4) For the purposes of sections 49 and 52 of the Act, the applicable rate under sections 34 (10) and 36 (10) of the Act does not apply in relation to electricity if, before the transition date,

(5) If it is not ascertainable when electricity is brought or sent into British Columbia or when delivery of electricity is received in British Columbia, for the purposes of sections 49 and 52 of the Act, the applicable rate under sections 34 (10) and 36 (10) of the Act applies in relation to electricity for which it is ascertainable that, on or after the transition date,

(6) For the purposes of sections 81 and 84 of the Act, the applicable rate under section 34 (10) of the Act applies in relation to electricity if the person referred to in section 81 or 84 of the Act first becomes a user of the electricity on or after the transition date.

(7) For the purposes of sections 82 and 86 of the Act, the applicable rate under section 34 (10) of the Act applies in relation to electricity if, on or after the transition date, a person subsequently uses that electricity, or allows that electricity to be used, for a purpose for which the person must then pay tax under section 82 (1) or 86 (1) of the Act.

SECTION 78: [Provincial Sales Tax Act transition – exemption for electricity] provides for the implementation of the exemption from tax on electricity, added to the Act by this Bill.

Provincial Sales Tax Act transition –
exemption for electricity

(2) For the purposes of exempting electricity from tax imposed under section 37 of the Act, section 140.1 of the Act does not apply in respect of any consideration for the purchase of electricity that, before April 1, 2019, becomes due or is paid without having become due.

(3) If all or any portion of the consideration for the purchase of electricity is not ascertainable before April 1, 2019, for the purposes of exempting electricity from tax imposed under section 37 of the Act, section 140.1 of the Act applies in respect of that or any portion of that consideration that becomes ascertainable on or after April 1, 2019.

(4) For the purposes of exempting electricity from tax imposed under section 49 or 52 of the Act, section 140.1 of the Act does not apply in relation to electricity if, before April 1, 2019,

(5) If it is not ascertainable when electricity is brought or sent into British Columbia or when delivery of electricity is received in British Columbia, for the purposes of exempting electricity from tax imposed under section 49 or 52 of the Act, section 140.1 of the Act applies in relation to electricity for which it is ascertainable that, on or after April 1, 2019,

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:

Explanatory Notes