The following electronic version is for informational purposes only.
The printed version remains the official version.
HONOURABLE CAROLE JAMES
MINISTER OF FINANCE AND DEPUTY PREMIER
HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:
Income Tax Act
SECTION 1: [Income Tax Act, section 1] clarifies the definition of "regulation" to include all regulations made under the Act.
1 Section 1 (1) of the Income Tax Act, R.S.B.C. 1996, c. 215, is amended by repealing the definition of "regulation" and substituting the following:
"regulation" means a regulation made under this Act; .
SECTION 2: [Income Tax Act, section 1] is consequential to the repeal of sections 10 to 13 of the Act by this Bill.
2 Section 1 (8) (d) is amended by striking out "10 to 13 and".
SECTION 3: [Income Tax Act, section 1] clarifies that descriptive text following a reference to a provision of the Income Tax Act (Canada) or the regulations made under that Act is not part of the Income Tax Act (British Columbia) or the regulations made under that Act and is considered to be for convenience of reference only.
3 Section 1 is amended by adding the following subsection:
(10) In this Act or a regulation made under this Act, if a reference to a provision of the federal Act or the federal regulations is followed by italicized text in square brackets that is or purports to be descriptive of the subject matter of the provision, the text in square brackets
(a) is not part of this Act or the regulation, and
(b) is to be considered to have been added editorially for convenience of reference only.
SECTION 4: [Income Tax Act, section 8] provides that a person must be resident in British Columbia at the end of December 31 of a taxation year in order to come within the meaning of "qualified relation".
4 Section 8 (1) is amended by repealing the definition of "qualified relation" and substituting the following:
"qualified relation", in relation to an individual for a taxation year, means the person who, at the end of December 31 of that year,
(a) is resident in British Columbia, and
(b) is the individual's cohabiting spouse or common-law partner, as defined in section 122.6 of the federal Act.
SECTION 5: [Income Tax Act, section 8] removes the requirement that an eligible individual file a return of income within 3 years after the end of a taxation year in order to be entitled to a sales tax credit for the taxation year.
5 Section 8 (2) is repealed and the following substituted:
(2) An eligible individual is entitled to a sales tax credit for a taxation year if the individual files, with the individual's return of income under section 29 for the taxation year, a form provided by the minister that contains the information necessary to establish the individual's claim for the sales tax credit.
SECTION 6: [Income Tax Act, sections 9 to 13] repeals sections providing for a deemed overpayment known as the BC Family Bonus.
6 Sections 9 to 13 are repealed.
SECTION 7: [Income Tax Act, section 16]
7 Section 16 is amended
(a) in subsection (1) (a) by repealing the description of "C" and substituting the following:
| C | means the amount that would be determined under section 125 (1) (a) of the federal Act for the corporation for the taxation year, , |
(b) in subsection (5) by repealing the definition of "specified partnership income", and
(c) by adding the following subsection:
(7) A corporation to which this section applies that assigns under section 125 (3.2) of the federal Act all or any portion of its business limit for a taxation year must file, with the return of income filed by the corporation under section 29 for the taxation year, the forms, containing the information, required by the Commissioner of Income Tax.
SECTION 8: [Income Tax Act, section 25.1] amends the definition of "excluded expense" to include a specified expense in respect of a mineral resource to the extent that there is or is reasonably expected to be related revenue earned before a new mine comes into production in reasonable commercial quantities.
8 Section 25.1 (1) is amended in the definition of "excluded expense" by striking out "or" at the end of paragraph (f.2) and by adding the following paragraph:
(f.3) an expense, in respect of a mineral resource, that
(i) is described in paragraph (c) (ii) (A), (C) or (D) of the definition of "qualified mining exploration expense",
(ii) is incurred after the date this paragraph comes into force,
(iii) is incurred before a new mine in the mineral resource comes into production in reasonable commercial quantities, and
(iv) results in revenue or can reasonably be expected to result in revenue earned before the new mine comes into production in reasonable commercial quantities,
except to the extent that the total of all such expenses in respect of the mineral resource exceeds the total of those revenues, or .
SECTION 9: [Income Tax Act, section 29] is consequential to the repeal of section 10 of the Act by this Bill.
9 Section 29 (3) is amended by repealing paragraph (b) (ii) and substituting the following:
(ii) deemed by section 13.071 [BC early childhood tax benefit] of this Act to be an overpayment on account of the taxpayer's liability under this Act for the year.
SECTION 10: [Income Tax Act, section 30] is consequential to the repeal of section 10 of the Act by this Bill.
10 Section 30 (2) is repealed.
SECTION 11: [Income Tax Act, section 38] is consequential to amendments to section 163 of the federal Act.
11 Section 38 (1) is amended by striking out "Section 163 (1)" and substituting "Section 163 (1), (1.1)".
SECTION 12: [Income Tax Act, section 38] is consequential to the repeal of section 10 of the Act by this Bill.
12 Section 38 (1) (a) is amended by striking out "section 10 or 13.071 of this Act, as applicable," and substituting "section 13.071 of this Act,".
SECTION 13: [Income Tax Act, section 42] is consequential to the repeal of sections 9, 10 and 11 of the Act by this Bill.
13 Section 42 (2) (a) is amended
(a) in subparagraph (i) by striking out "section 2, 10 or 13.071" and substituting "section 2 or 13.071",
(b) by repealing subparagraphs (ii), (iii) and (iii.1), and
(c) by adding "or" at the end of subparagraph (ii.2).
SECTION 14: [Income Tax Act, section 47] provides that the time period for claiming a mining exploration tax credit in respect of a taxation year that ends on or after January 1, 2017 must not be extended.
14 Section 47 (3) is amended by striking out "25.1 (7)," and substituting "25.1 (7) and (7.1),".
SECTION 15: [Income Tax Act, section 48] provides authority to make regulations retroactive.
15 Section 48 is amended by adding the following subsections:
(5) Subject to subsection (6), a regulation made under this Act may be made retroactive to January 1, 2008 or a later date, and if made retroactive is deemed to have come into force on the specified date.
(6) Subsection (5) does not apply to
(a) a regulation that may be made retroactive under another provision of this Act,
(b) a regulation that may be made under section 8.1 (8), 8.2 (8), 20 (8) or 96 (2.1), (2.2) or (2.3).
SECTION 16: [Income Tax Act, section 64] is consequential to the repeal of section 10 of the Act by this Bill.
16 Section 64 (5) (i) is amended by striking out "10 (3) (a) or".
SECTION 17: [Income Tax Act, section 69] is consequential to the repeal of sections 11 and 13 of the Act by this Bill.
17 Section 69 (5) (a) and (b) is repealed.
SECTION 18: [Income Tax Act, section 128] applies the restriction requiring filing within 36 months after the end of a taxation year only to a taxpayer claiming a tax credit under Division 3 or 3.1 of Part 9 of the Act.
18 Section 128 (2) is amended by striking out "under this Part" and substituting "under Division 3 or 3.1 of this Part".
SECTION 19: [Income Tax Act transition – BC Family Bonus] continues a rule authorizing the extension of time for filing a notice.
19 Despite the repeal of section 11 of the Income Tax Act (British Columbia), section 122.62 (2) of the Income Tax Act (Canada) continues to apply for the purposes of sections 10 to 13 of the Income Tax Act (British Columbia), as those sections read before their repeal by this Act.
SECTION 20: [Income Tax Act transition – small business rate] provides for the application of section 16 of the Act, as amended by this Bill.
20 Section 16 of the Income Tax Act (British Columbia), as amended by this Act, applies to
(a) taxation years that begin after March 21, 2016, and
(b) a person's taxation year that begins before March 22, 2016 and ends after March 21, 2016 if
(i) the person would be entitled to make an assignment to a corporation under section 125 (3.2) or (8) of the Income Tax Act (Canada) if section 125 (3.2) or (8) of that Act applied to that taxation year of the person,
(ii) the taxation year of the corporation referred to in subparagraph (i) begins after March 21, 2016,
(iii) the person makes such an assignment for the person's taxation year that begins before March 22, 2016 and ends after March 21, 2016 and the assignment is to the corporation for its taxation year that begins after March 21, 2016, and
(iv) the person files with the Minister of National Revenue the form referred to in section 44 (9) (b) (iv) of the Budget Implementation Act, 2016, No. 2 (Canada) on or before the date referred to in that section.
SECTION 21: [Income Tax Act transition – application of Income Tax Act (Canada) – failure to report income] in relation to the amendment to section 38 of the Income Tax Act by this Bill, applies section 163 (1.1) of the Income Tax Act (Canada) to taxation years that begin after 2014.
21 Section 163 (1.1) of the Income Tax Act (Canada), as that section applies for the purposes of the Income Tax Act (British Columbia), applies to taxation years that begin after 2014.
SECTION 22: [Insurance Premium Tax Act – retroactive regulation] provides authority to make a regulation retroactive for the purposes of section 15.1 of the Insurance Premium Tax Act and provides for the application of a former regulation to interest payable on amounts due under that section.
22 (1) A regulation made on or before December 31, 2018 for the purposes of section 15.1 (1) of the Insurance Premium Tax Act may be made retroactive to June 13, 2016 or a later date, and if made retroactive is deemed to have come into force on the specified date.
(2) Section 1 of the Insurance Premium Tax Act Interest Regulation, B.C. Reg. 52/2003, as that section read at the applicable time before that regulation was repealed, applies to interest payable on amounts due on or after January 1, 2009 to the government under section 15.1 (1) of the Insurance Premium Tax Act.
(3) Subsection (2) is retroactive to the extent necessary to give it full force and effect and must not be construed as lacking retroactive effect in relation to any matter because it makes no specific reference to that matter.
SECTION 23: [Logging Tax Act – retroactive regulation] provides authority to make a regulation retroactive for the purposes of section 21.1 of the Logging Tax Act and provides for the application of a former regulation to interest payable on amounts due under that section.
23 (1) A regulation made on or before December 31, 2018 for the purposes of section 21.1 (1) of the Logging Tax Act may be made retroactive to July 5, 2016 or a later date, and if made retroactive is deemed to have come into force on the specified date.
(2) Section 1 of the Logging Tax Act Interest Regulation, B.C. Reg. 53/2003, as that section read at the applicable time before that regulation was repealed, applies to interest payable on amounts due, in respect of taxation years beginning on or after January 1, 2009, to the government under section 21.1 (1) of the Logging Tax Act.
(3) Subsection (2) is retroactive to the extent necessary to give it full force and effect and must not be construed as lacking retroactive effect in relation to any matter because it makes no specific reference to that matter.
24 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:
| Item | Column 1 Provisions of Act |
Column 2 Commencement |
| 1 | Anything not elsewhere covered by this table | The date of Royal Assent |
| 2 | Section 1 | October 8, 2010 |
| 3 | Section 2 | July 1, 2018 |
| 4 | Section 4 | January 1, 2018 |
| 5 | Section 5 | January 1, 2015 |
| 6 | Section 6 | July 1, 2018 |
| 7 | Section 7 | December 15, 2016 |
| 8 | Sections 9 and 10 | July 1, 2018 |
| 9 | Section 11 | June 22, 2016 |
| 10 | Sections 12 and 13 | July 1, 2018 |
| 11 | Sections 16 and 17 | July 1, 2018 |
| 12 | Section 18 | January 1, 2015 |
| 13 | Section 19 | July 1, 2018 |
SECTION 1: [Income Tax Act, section 1] clarifies the definition of "regulation" to include all regulations made under the Act.
SECTION 2: [Income Tax Act, section 1] is consequential to the repeal of sections 10 to 13 of the Act by this Bill.
SECTION 3: [Income Tax Act, section 1] clarifies that descriptive text following a reference to a provision of the Income Tax Act (Canada) or the regulations made under that Act is not part of the Income Tax Act (British Columbia) or the regulations made under that Act and is considered to be for convenience of reference only.
SECTION 4: [Income Tax Act, section 8] provides that a person must be resident in British Columbia at the end of December 31 of a taxation year in order to come within the meaning of "qualified relation".
SECTION 5: [Income Tax Act, section 8] removes the requirement that an eligible individual file a return of income within 3 years after the end of a taxation year in order to be entitled to a sales tax credit for the taxation year.
SECTION 6: [Income Tax Act, sections 9 to 13] repeals sections providing for a deemed overpayment known as the BC Family Bonus.
SECTION 7: [Income Tax Act, section 16]
SECTION 8: [Income Tax Act, section 25.1] amends the definition of "excluded expense" to include a specified expense in respect of a mineral resource to the extent that there is or is reasonably expected to be related revenue earned before a new mine comes into production in reasonable commercial quantities.
SECTION 9: [Income Tax Act, section 29] is consequential to the repeal of section 10 of the Act by this Bill.
SECTION 10: [Income Tax Act, section 30] is consequential to the repeal of section 10 of the Act by this Bill.
SECTION 11: [Income Tax Act, section 38] is consequential to amendments to section 163 of the federal Act.
SECTION 12: [Income Tax Act, section 38] is consequential to the repeal of section 10 of the Act by this Bill.
SECTION 13: [Income Tax Act, section 42] is consequential to the repeal of sections 9, 10 and 11 of the Act by this Bill.
SECTION 14: [Income Tax Act, section 47] provides that the time period for claiming a mining exploration tax credit in respect of a taxation year that ends on or after January 1, 2017 must not be extended.
SECTION 15: [Income Tax Act, section 48] provides authority to make regulations retroactive.
SECTION 16: [Income Tax Act, section 64] is consequential to the repeal of section 10 of the Act by this Bill.
SECTION 17: [Income Tax Act, section 69] is consequential to the repeal of sections 11 and 13 of the Act by this Bill.
SECTION 18: [Income Tax Act, section 128] applies the restriction requiring filing within 36 months after the end of a taxation year only to a taxpayer claiming a tax credit under Division 3 or 3.1 of Part 9 of the Act.
SECTION 19: [Income Tax Act transition – BC Family Bonus] continues a rule authorizing the extension of time for filing a notice.
SECTION 20: [Income Tax Act transition – small business rate] provides for the application of section 16 of the Act, as amended by this Bill.
SECTION 21: [Income Tax Act transition – application of Income Tax Act (Canada) – failure to report income] in relation to the amendment to section 38 of the Income Tax Act by this Bill, applies section 163 (1.1) of the Income Tax Act (Canada) to taxation years that begin after 2014.
SECTION 22: [Insurance Premium Tax Act – retroactive regulation] provides authority to make a regulation retroactive for the purposes of section 15.1 of the Insurance Premium Tax Act and provides for the application of a former regulation to interest payable on amounts due under that section.
SECTION 23: [Logging Tax Act – retroactive regulation] provides authority to make a regulation retroactive for the purposes of section 21.1 of the Logging Tax Act and provides for the application of a former regulation to interest payable on amounts due under that section.