Bill 4 – 2021: Budget Measures Implementation Act, 2021

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

SECTION 1:[Assessment Act, section 1] adds a definition of "electronic transmission".

1 Section 1 (1) of the Assessment Act, R.S.B.C. 1996, c. 20, is amended by adding the following definition:

SECTION 2: [Assessment Act, section 3]

removes the requirement to mail a notice of assessment and replaces it with a requirement to deliver an assessment notice;
makes a housekeeping amendment;
broadens the means by which an assessment notice may be delivered to include electronic transmission.

(a) in subsection (1) (b) by striking out "mail a notice of assessment" and substituting "deliver an assessment notice",

(b) in subsection (3) by striking out "notice of assessment" and substituting "assessment notice",

(c) in subsection (7) by striking out "not known to the assessor or is not recorded" and substituting "not known to the assessor and is not recorded", and

(8) The assessment notice must be delivered to the person named in the assessment roll

(b) by electronic transmission, if the person provides authorization under section 65.1 (1) (a), using the email address provided under section 65.1 (2).

SECTIONS 3 AND 4: [Assessment Act, sections 6 and 11] are consequential to amendments made by this Bill to section 3 of the Act.

(a) in subsection (3) by striking out "mail an assessment notice" and substituting "deliver an assessment notice", and

(b) in subsection (5) by striking out "assessment notice sent by the assessor" and substituting "assessment notice delivered by the assessor".

4 Section 11 (a) (iii) is amended by striking out "mail the notice" and substituting "deliver the notice".

SECTION 5: [Assessment Act, section 15]

makes a housekeeping amendment;
removes the requirement for service of a notice to be in person or by mail.

(2) At any time, an authorized person may by written notice require a person who owns, occupies or disposes of property to provide to the authorized person, within 21 days of the date on which the notice is sent or a longer period specified in the notice, information for any purpose related to the administration of this Act.

SECTION 6: [Assessment Act, section 21] is consequential to amendments made by this Bill to section 3 of the Act.

6 Section 21 (5) is amended by striking out "following receipt of the assessment notice" and substituting "following delivery of the assessment notice".

SECTION 7: [Assessment Act, section 65.1] allows a person to authorize the British Columbia Assessment Authority to use electronic transmission for delivery of notices under the Act and requires the person to provide an email address for this purpose.

Authorization for electronic transmission of notices

(a) if the assessment authority provides for electronic transmission, authorize, in writing, the assessment authority to electronically transmit a notice under this Act to the person, and

(b) at any time, in writing, withdraw the authorization provided under paragraph (a).

(2) If a person provides an authorization under subsection (1) (a), the person must provide to the assessment authority an email address for the purposes of electronic transmission.

SECTION 8: [Assessment Act, section 68] ensures that the requirement to delete the names of individuals from an assessment roll does not apply to an assessment roll that is accessible through any electronic information service used by the assessment authority.

8 Section 68 (2) (a) (iii) is amended by striking out "through the B.C. OnLine information service" and substituting "through the B.C. OnLine information service or through another electronic information service used by the assessment authority".

SECTION 9: [Carbon Tax Act, section 57] removes the requirement to seek leave from the British Columbia Court of Appeal to appeal a decision of the British Columbia Supreme Court.

SECTION 10: [Carbon Tax Act, section 71] adds authority for the disclosure of certain information for fiscal policy formulation or evaluation.

(c.1) to an official or employee of the ministry of the minister for the purposes of the formulation or evaluation of fiscal policy, .

SECTIONS 11 AND 12: [Carbon Tax Act, Schedules 1 and 2] extend the application of the existing tax rates for fuels and combustibles until March 31, 2022 and apply the next rate increase on April 1, 2022.

Rate of tax for the period starting April 1, 2020 and ending March 31, 2022 , and

Rate of tax for the year starting April 1, 2022 and each subsequent year starting April 1 .

Rate of tax for the period starting on April 1, 2020 and ending on March 31, 2022 , and

Rate of tax for the year starting on April 1, 2022 and each subsequent year starting on April 1 .

SECTIONS 13 TO 15: [Employer Health Tax Act, Part 2.1] establish an increased employment credit.

13 The Employer Health Tax Act, S.B.C. 2018, c. 42, is amended by adding the following Part:

Definitions

(b) all of the employers that were associated with the employer referred to in paragraph (a) on December 31, 2020;

"base period" means the period beginning on July 1, 2020 and ending on September 30, 2020;

"base period remuneration" means the total of all eligible remuneration paid by an employer to or on behalf of an eligible employee in respect of all weeks in the base period;

"determination", in relation to a determination under this Part, includes a redetermination;

"eligible employee" has the meaning set out in section 30.03 [eligible employee];

"eligible remuneration" has the meaning set out in section 30.04 [eligible remuneration];

"increased employment credit" means a deemed overpayment under this Part, calculated under section 30.08 [calculation of increased employment credit];

"normal redetermination period" means the period referred to in section 30.09 (1) (b) [determinations – general rule];

"public institution" has the same meaning as in section 125.7 of the Income Tax Act (Canada), but does not include the following:

(i) the corporation is a corporation described in section 149 (1) (d.5) of the Income Tax Act (Canada);

(ii) not less than 90% of the shares, or the capital, of the corporation are owned by one or more Aboriginal governments, as defined in section 241 (10) of the Income Tax Act (Canada), or similar Indigenous governing bodies, described in section 149 (1) (c) of the Income Tax Act (Canada);

(i) the corporation is a corporation described in section 149 (1) (d.6) of the Income Tax Act (Canada);

(ii) all of the shares, except directors' qualifying shares, or the capital, of the corporation are owned by one or more of

(A) an Aboriginal government, as defined in section 241 (10) of the Income Tax Act (Canada), or a similar Indigenous governing body, described in section 149 (1) (c) of the Income Tax Act (Canada), or

"qualifying period" means the period beginning on October 1, 2020 and ending on December 31, 2020;

"qualifying period remuneration" means the total of all eligible remuneration paid by an employer to or on behalf of an eligible employee in respect of all weeks in the qualifying period;

(a) a political party registered under Part 9 [Registration of Political Parties and Constituency Associations] of the Election Act, or

(a) an amount received or deemed to have been received by an employee under section 7 of the Income Tax Act (Canada);

(b) an amount, in respect of the base period or the qualifying period, paid by an employer to or on behalf of an employee after June 30, 2021;

(a) to work in person at a permanent establishment of the employee's employer in British Columbia,

(b) to be physically present in British Columbia for the performance of the employee's duties and be paid from or through a permanent establishment of the employer in British Columbia, or

(i) to have worked for the employer as described in paragraph (a) immediately before the start of the leave, or

(ii) to have worked for the employer as described in paragraph (b) immediately before the start of the leave and to be paid, while on leave, from or through a permanent establishment of the employer in British Columbia.

Employer eligibility for increased employment credit

30.02 (1) Subject to subsection (2), the following employers are not eligible for an increased employment credit:

(2) An employer that operates a private school or private college, within the meaning of section 8901.1 of the Income Tax Regulations (Canada), is eligible for an increased employment credit.

(3) A partnership is not eligible for an increased employment credit if 50% or more of the fair market value of all interests in the partnership is held, at any time during the period beginning on July 1, 2020 and ending on December 31, 2020, directly or indirectly, by one or more persons that are

(b) a public institution, other than an Aboriginal government, as defined in section 241 (10) of the Income Tax Act (Canada), or a similar Indigenous governing body, described in section 149 (1) (c) of the Income Tax Act (Canada).

Eligible employee

30.03 (1) Subject to subsection (2), an employee is an eligible employee of an employer for the purposes of this Part when the employee is reporting for work in British Columbia during the base period or the qualifying period.

(2) An employee is not an eligible employee if both of the following circumstances apply:

Eligible remuneration

30.04 (1) Subject to subsections (2) and (3) and for the purposes of this Part, eligible remuneration is remuneration paid by an employer to or on behalf of an eligible employee in respect of all days in a week in the base period or the qualifying period, as applicable, on which the employee reported for work in British Columbia.

(a) the remuneration paid by the employer to or on behalf of the employee in respect of the days in the week on which the employee reported for work in British Columbia, and

(a) the amount under subsection (2) (a) only includes the remuneration paid to or on behalf of the employee in respect of the days of that week that fall within the relevant period, and

(b) the amount under subsection (2) (b) is prorated for that week by the number of days of that week that fall within the relevant period.

Associated employers

30.05 (1) Despite section 14 (2) [application of Division 3], in determining whether two or more employers are associated with one another for the purposes of this Part, sections 15 [application of federal provisions – associated employers] and 16 (1), (2) and (3) (a) [other rules – associated employers] apply.

(2) For the purposes of this Part, if two or more employers are associated with one another and employ the same eligible employee in the base period or the qualifying period,

(a) only one of the associated employers may claim an increased employment credit in respect of that employee,

(b) the associated employer that claims an increased employment credit in respect of that employee is deemed to have paid all of the remuneration paid to or on behalf of that employee in respect of the base period or the qualifying period by all of the associated employers, and

(c) the associated employer that claims the increased employment credit in respect of that employee must file with the commissioner a written agreement described in subsection (3).

(a) describe which of the associated employers will claim an increased employment credit with respect to the employee who is employed by two or more of the associated employers, and

(b) be in the form, and contain any further information, required by the commissioner.

Application for increased employment credit

(a) file an application electronically in the form and manner required by the commissioner, and

(b) file with the application any other information or records required by the commissioner.

(2) An application under this section must be filed on or before December 31, 2021.

Determination of increased employment credit

30.07 (1) On receiving an application under section 30.06, the commissioner must examine the application, and any other information or records filed with the application, and determine

(b) if the applicant is eligible, the amount of the applicant's increased employment credit in accordance with section 30.08.

(2) In making a determination, the commissioner is not bound by an application filed under this Part or any other information or records supplied under this Act.

(3) Subject to being amended or varied on appeal or by a redetermination, a determination is valid and binding despite any error, defect or omission in the determination or in procedure.

Calculation of increased employment credit

30.08 (1) The amount of the increased employment credit is determined by the following formula:

(2) An overpayment of the amount calculated under subsection (1) on account of an employer's liability under this Act for the 2020 calendar year is deemed to have arisen if

(a) an employer has applied under section 30.06 [application for increased employment credit] for an increased employment credit,

(3) A deemed overpayment under subsection (2) arises even if no tax is payable under this Act by the employer for the 2020 calendar year.

Determinations – general rule

(i) the applicant, or a person filing the applicant's application for an increased employment credit, has made any misrepresentation or committed any fraud in filing the application or in supplying, at any time, other information or records, or

(ii) a waiver filed under subsection (2) by the applicant is in effect at that time, or

(b) within 6 years after the date of the original notice of determination, in any other case.

(2) An applicant may file a waiver with the commissioner before the expiration of the normal redetermination period.

(3) A waiver filed under subsection (2) continues in effect until 6 months after the applicant files with the commissioner a notice revoking the waiver.

(4) A waiver filed under subsection (2) and a notice filed under subsection (3) must be filed in the form and manner, and containing the information, required by the commissioner.

(5) Despite subsection (1), a determination to which subsection (1) (a) (i) or (ii) applies may be made after the applicant's normal redetermination period, but only to the extent that the determination can reasonably be considered as relating to,

(a) if subsection (1) (a) (i) applies, any misrepresentation made by the applicant, or a person filing the applicant's application for an increased employment credit, or any fraud committed by the applicant or that other person in filing the application or in supplying any other information or records under this Act, or

(b) if subsection (1) (a) (ii) applies, a matter specified in the waiver filed with the commissioner.

(6) The authority of the commissioner to make a determination under section 30.10 [consequential determinations – income taxes] or 30.11 [consequential redeterminations after appeal]

(a) is in addition to the authority to make a determination under section 30.07 [determination of increased employment credit] or this section,

(b) is not limited by the authority to make a determination under section 30.07 [determination of increased employment credit] or this section, and

(c) does not limit the authority to make a determination under section 30.07 [determination of increased employment credit] or this section.

Consequential determinations – income taxes

(a) the applicant is issued a notice of assessment, reassessment or additional assessment under the Income Tax Act (Canada), and

(b) an amount relevant in calculating the amount of the applicant's increased employment credit would be changed if a determination were made under this Part.

(i) a notice, in the form and manner and containing the information, required by the commissioner, and

(ii) any other information or records required by the commissioner to be filed with the notice, and

(b) the commissioner may, subject to subsection (4), make a determination, but only to the extent that the determination can reasonably be considered as relating to the assessment, reassessment or additional assessment under the Income Tax Act (Canada).

(3) The applicant must file the notice, and any other information and records, referred to in subsection (2) (a) on or before the later of

(b) the date that is 90 days after the applicant receives the notice referred to in subsection (1) (a).

(4) The commissioner may make a determination under subsection (2) (b) only before the later of

(ii) the day that the commissioner is otherwise notified of the assessment, reassessment or additional assessment under the Income Tax Act (Canada).

Consequential redeterminations after appeal

(a) a court has, on the disposition of an appeal by the person in respect of a determination,

(b) any further appeal is disposed of or the time for filing any further appeal has expired.

(2) If this section applies in relation to a person, the commissioner must make a redetermination in accordance with the decision of the court.

Notice of determination

30.12 (1) After the commissioner makes a determination in respect of an applicant, the commissioner must give the applicant a notice of determination.

(2) Despite section 92 (4) [how and when documents are given by commissioner], if a notice of determination is sent by ordinary mail, registered mail or electronic mail, the notice, for the purposes of this Act, is deemed to have been given on the date of that notice.

Payment of increased employment credit

30.13 (1) Without limiting section 69 [refund of overpayment], if an overpayment is deemed to have arisen under section 30.08 [calculation of increased employment credit], the minister, on the certificate of the commissioner as to facts, must refund out of the consolidated revenue fund to the employer the amount of the overpayment.

(2) Despite subsection (1), if there is an amount owing to the government under this Act by the employer, the amount overpaid must first be applied in satisfaction of the amount owing, and notice must be given to the employer, accompanied by the refund of the amount overpaid and remaining unapplied.

(3) Despite subsections (1) and (2), if the amount to be refunded under subsection (1) or (2) is less than $10, the amount overpaid, and, in the case of subsection (2), remaining unapplied, is deemed to be zero.

(4) The amount payable under subsection (1) must be paid by electronic funds transfer.

(5) Despite the Financial Administration Act and the Interest on Overdue Accounts Payable Regulation, B.C. Reg. 215/83, no interest is payable by the government with respect to the amount payable under subsection (1).

Anti-avoidance rule

30.14 In applying section 53 [anti-avoidance rule] for the purposes of this Part, the following rules apply:

(a) a reference in that section to a "tax benefit" includes an increased employment credit to which an employer is not entitled, or an increased employment credit amount that is greater than the amount to which an employer is entitled;

(b) in the definition of "tax consequences", the reference to "BC remuneration" is to be read as a reference to "increased employment credit";

Gross negligence – increased employment credit

30.15 (1) If an employer knowingly, or under circumstances amounting to gross negligence, makes, or participates in, assents to or acquiesces in the making of, a false statement or an omission in an increased employment credit application or other record filed or supplied or in information supplied under this Part, the employer is liable to a penalty equal to the greater of

(b) 50% of the amount by which the amount of an increased employment credit calculated on the basis of the false statement or omission exceeds the amount of the increased employment credit calculated on the basis of accurate and complete information.

(2) An employer must pay to the government interest on a penalty under subsection (1) from the date on which the application or other record was filed or supplied, or the date on which the information was supplied, until the date of payment.

Misrepresentation by third party – increased employment credit

30.16 In applying section 163.2 (5) of the Income Tax Act (Canada) for the purposes of this Part, the following rules apply:

(a) section 163.2 (5) of the Income Tax Act (Canada) is to be read as if the reference to "subsection 163 (2)" were a reference to section 30.15 [gross negligence – increased employment credit] of this Act;

(b) section 163.2 (5) of the Income Tax Act (Canada) is to be read as if the reference to "a return filed for the purposes of this Act" were a reference to "an application for an increased employment credit or other record filed or supplied or in information supplied under this Part".

Excess refund – increased employment credit

30.17 (1) If it appears from an inspection, audit, examination or investigation or from other information available to the commissioner that, under section 30.13 (1) [payment of increased employment credit], an amount has been refunded to an employer in excess of the amount to which the employer was entitled under this Part, the excess is deemed to be an amount that became payable to the government by the employer on the day on which the amount was refunded.

(2) If an amount applied under section 30.13 (2) [payment of increased employment credit] to an amount owing by an employer is in excess of the amount to which the employer is entitled as a refund under this Act, this section applies in respect of the amount applied as if that amount had been refunded to the employer on the day the amount was applied to the amount owing.

(3) The commissioner may at any time assess a person for any amount payable under subsection (1) or (2).

(4) In applying Division 3 [Assessments] of Part 3 [Administration and Enforcement] for the purposes of this Part, "assessable amount", in relation to a person, is deemed to include an amount payable under this section by the person.

Interest

30.18 If an amount is deemed under section 30.17 to be an amount payable by an employer, the employer is liable to pay interest on the amount from the date the amount became payable under that section until the date of payment.

Appeals

30.19 (1) In applying Part 4 [Appeals] for the purposes of this Part, the following rules apply:

(a) Part 4 is to be read as if the references to an "assessment" were references to a determination under this Part;

(b) section 75 (5) [appeal to minister] is to be read as if the reference to section 49 [assessments of other amounts payable] were a reference to section 30.17 [excess refund – increased employment credit].

(2) Despite section 75 (2) [appeal to minister], for the purposes of this Part, written notice of an appeal must be given to the minister after April 20, 2021 and on or before the later of

(b) the date that is 90 days after the date of the notice of determination in respect of the matter being appealed.

Offences – increased employment credit

30.20 Without limiting section 99 [general offences], a person who does any of the following commits an offence:

(a) destroys, alters, mutilates, hides or otherwise disposes of a record, to obtain or claim an increased employment credit to which a person is not entitled, or in an amount that is greater than that amount to which a person is entitled, under this Part;

(b) makes, or participates in, assents to or acquiesces in the making of, a false or deceptive entry in a record related to an application for an increased employment credit under this Part;

(c) makes or uses, or participates in, assents to or acquiesces in the making or use of, a record in a false or deceptive manner in order to obtain or claim an increased employment credit to which a person is not entitled, or in an amount greater than that amount to which a person is entitled, under this Part;

(d) wilfully, in any manner, attempts to obtain or claim an increased employment credit to which a person is not entitled, or in an amount that is greater than the amount to which a person is entitled, under this Part;

(e) conspires with any person to do anything described in paragraphs (a) to (d).

Penalties – increased employment credit

30.21 In applying section 100 [penalties] for the purposes of this Part, the following rules apply:

(a) a reference to "an offence under section 99" is to be read to include an offence under section 30.20;

(b) a reference to "the amount of tax that was sought to be evaded" is to be read as "the amount of increased employment credit to which a person is not entitled, or that is greater than that amount to which a person is entitled".

Assessment of assessable amount

30.22 (1) Subject to subsection (2), the commissioner may assess an employer for an assessable amount at any time after receiving an application under this Part from the employer.

(2) In applying section 50 (1) [assessments of penalties and interest] for the purposes of this Part,

(a) a reference to section 46 [assessments – general rules] is to be read as a reference to section 30.09 [determinations – general rule],

(b) a reference to section 47 [consequential assessments – income taxes] is to be read as a reference to section 30.10 [consequential determinations – income taxes], and

(c) a reference to section 48 [consequential reassessments after appeal] is to be read as a reference to section 30.11 [consequential redeterminations after appeal].

Information sharing

30.23 An applicant under this Part is deemed to be a taxpayer for the purposes of sections 90 [communication of information] and 91 [information-sharing agreements].

Repeal by regulation

30.24 After December 31, 2024, the Lieutenant Governor in Council may repeal this Part and section 107.01 [retroactive regulations] by regulation.

SECTION 16: [Employer Health Tax Act, section 76] removes the requirement to seek leave from the British Columbia Court of Appeal to appeal a decision of the British Columbia Supreme Court.

SECTION 17: [Employer Health Tax Act, section 90]

adds an override of other enactments and laws that allow for certain information to be provided or used or for access to it;
adds a requirement that other enactments, under which certain information may be provided or its inspection allowed for, must be prescribed.

(a) in subsection (2) by striking out "Except as authorized by this section, an official must not" and substituting "Despite any other enactment or law, except as authorized by this section an official must not", and

(b) in subsection (5) (j) by striking out "under an enactment" and substituting "under a prescribed enactment".

SECTION 18: [Employer Health Tax Act, section 107.01] authorizes regulations made in respect of the increased employment credit to be retroactive.

Retroactive regulations

107.01 A regulation made in respect of Part 2.1 [Increased Employment Credit] may be made retroactive to March 30, 2021 or a later date, and if made retroactive is deemed to have come into force on the specified date.

SECTION 19: [Forest Act, section 142.91] removes the requirement to seek leave from the British Columbia Court of Appeal to appeal a decision of the British Columbia Supreme Court.

SECTION 20: [Home Owner Grant Act, section 13.1] adds authority for the use and disclosure of certain information for fiscal policy formulation or evaluation.

(a.1) to an official or employee of the ministry for the purposes of the formulation or evaluation of fiscal policy, , and

(b) in subsections (4) and (4.1) by striking out "or" at the end of paragraph (a) and by adding the following paragraph:

(a.1) to an official or employee of the ministry for the purposes of the formulation or evaluation of fiscal policy, or .

SECTION 21: [Hydro and Power Authority Act, section 32] adds the Employer Health Tax Act to the list of Acts and provisions that apply to the British Columbia Hydro and Power Authority.

21 Section 32 (7) of the Hydro and Power Authority Act, R.S.B.C. 1996, c. 212, is amended by adding the following paragraph:

SECTION 22: [Income Tax Act, section 8.1] provides that the provisions of the federal Income Tax Act respecting the one-time additional payment under the GST/HST tax credit for May 2020 do not apply to the section of the provincial Income Tax Act respecting the climate action tax credit.

22 Section 8.1 (2) of the Income Tax Act, R.S.B.C. 1996, c. 215, is amended by striking out "subsection (3)" and substituting "subsections (3), (3.001), (3.02) and (4.1)".

SECTION 23: [Income Tax Act, section 25.1] extends the deadline to apply for the mining exploration tax credit.

(7.2) The time limit of 18 months referred to in subsection (7.1) is extended by 6 months or until December 31, 2020, whichever extension is shorter, if the time limit would otherwise expire during the period beginning on March 13, 2020 and ending on December 30, 2020.

SECTION 24: [Income Tax Act, section 56] provides that the provisions of the federal Income Tax Act respecting the COVID-19 temporary wage subsidy do not apply to the provincial Income Tax Act.

24 Section 56 (1) is amended by striking out "153 (1) to (3.1)" and substituting "153 (1), (1.01) and (1.1) to (3.1)".

SECTION 25: [Income Tax Act, section 64]

adds an override of other enactments and laws that allow for certain information to be provided or used or for access to it;
adds a requirement that other enactments, under which certain information may be provided or its inspection allowed for, must be prescribed.

(b) in subsection (5) (j) by striking out "under an enactment" and substituting "under a prescribed enactment".

SECTION 26: [Income Tax Act, section 64] adds authority for the use and disclosure of taxpayer information for the administration and enforcement of Part VIII.4 of the Employment Insurance Act (Canada).

(i.2) to an official of the Department of Employment and Social Development of the Government of Canada, solely for the purposes of the administration or enforcement of Part VIII.4 of the Employment Insurance Act (Canada), .

SECTION 27: [Income Tax Act, section 85] extends the deadline to apply for film and television tax credits.

(2.1) The time limit of 36 months referred to in subsection (2) is extended by 6 months or until December 31, 2020, whichever extension is shorter, if the time limit would otherwise expire during the period beginning on March 13, 2020 and ending on December 30, 2020.

SECTION 28: [Income Tax Act, section 103] extends the deadline to apply for the British Columbia scientific research and experimental development tax credit.

(3) The time limit of 18 months referred to in subsection (2) is extended by 6 months or until December 31, 2020, whichever extension is shorter, if the time limit would otherwise expire during the period beginning on March 13, 2020 and ending on December 30, 2020.

SECTION 29: [Income Tax Act, section 111] extends the book publishing tax credit by 5 years.

29 Section 111 (1) is amended in the definition of "CBF contribution" by striking out "April 1, 2021" and substituting "April 1, 2026".

SECTION 30: [Income Tax Act, section 114] extends the deadline to apply for the book publishing tax credit.

SECTION 31: [Income Tax Act, section 128] extends the deadline to apply for the training tax credits for employers and for shipbuilding and ship repair industry employers.

(3) The time limit of 36 months referred to in subsection (2) is extended by 6 months or until December 31, 2020, whichever extension is shorter, if the time limit would otherwise expire during the period beginning on March 13, 2020 and ending on December 30, 2020.

SECTION 32: [Income Tax Act, section 138] extends the deadline to apply for the interactive digital media tax credit.

SECTION 33: [Income Tax Act, sections 202 and 229] removes the requirement to seek leave from the British Columbia Court of Appeal to appeal a decision of the British Columbia Supreme Court.

SECTION 34: [Income Tax Act, section 215] provides for eligibility for the emergency benefit for workers in relation to the receipt of the employment insurance emergency response benefit.

(a) in subsection (1) (a) by striking out "either of the following applies" and substituting "any of the following applies",

(b) in subsection (1) (a) (ii) (B) by adding "on the date the individual's application for the emergency benefit was filed under section 216 of this Act" after "with that Act", and

(A) is entitled to receive an employment insurance emergency response benefit under Part VIII.4 of the Employment Insurance Act (Canada), and

(B) has not repaid or is not required to repay all of the employment insurance emergency response benefits received under Part VIII.4 of the Employment Insurance Act (Canada); .

SECTION 35: [Income Tax Act, section 215] provides for eligibility for the emergency benefit for workers for individuals who received an overpayment under Part 14 of the Act but were otherwise not eligible for the emergency benefit.

(1.1) An individual is eligible for an emergency benefit if the individual meets all the following requirements:

(b) the individual receives an amount paid under section 218 even though, but for this subsection, the individual is not eligible for an emergency benefit;

(i) receives an income support payment under the Canada Emergency Response Benefit Act, whether or not the individual has repaid or is required to repay all of the income support payments received under that Act,

(ii) would have been entitled to receive an income support payment under the Canada Emergency Response Benefit Act if

(A) that Act read in accordance with subsection (6) of this section and any further modifications under paragraph (d) of this subsection, and

(iii) receives an employment insurance emergency response benefit under Part VIII.4 of the Employment Insurance Act (Canada), whether or not the individual has repaid or is required to repay all of the employment insurance emergency response benefit received under that Act;

(d) other prescribed requirements, including requirements that provide for modifications to how the Canada Emergency Response Benefit Act or the Employment Insurance Act (Canada) must be read. , and

(b) in subsections (2) and (5) by striking out "Despite subsection (1)" and substituting "Despite subsections (1) and (1.1)".

SECTION 36: [Income Tax Act, section 219] requires an individual to file a notice with the commissioner if the individual is no longer eligible for the emergency benefit under section 215 (1.1), added to the Act by this Bill.

36 Section 219 (1) is amended by striking out "section 215 (1)" and substituting "section 215 (1) or (1.1)".

SECTION 37: [Income Tax Act, section 219] requires an individual to file a notice with the commissioner in relation to specified events in respect of the employment insurance emergency response benefit.

(a) in paragraph (a) by striking out "August 31, 2020" and substituting "June 30, 2021", and

(v) the date the individual repaid all of the employment insurance emergency response benefit under Part VIII.4 of the Employment Insurance Act (Canada);

(vi) the date the individual received notice that the Minister of Employment and Social Development for Canada has determined that the individual is not entitled to the employment insurance emergency response benefit payments the individual received under Part VIII.4 of the Employment Insurance Act (Canada).

SECTION 38: [Income Tax Act, section 238] provides for the prescribing of requirements for the purposes of section 215 (1.1), added to the Act by this Bill.

(2.1) In making regulations under subsection (1) (a.1), the Lieutenant Governor in Council may make different regulations for different classes of individuals.

SECTIONS 39 TO 41: [Income Tax Act, Part 15] provide for the recovery benefit.

Definitions

"cohabiting spouse or common-law partner" has the same meaning as in section 122.6 of the federal Act;

(b) another individual who, on December 18, 2020, is the cohabiting spouse or common-law partner of the individual, if that cohabiting spouse or common-law partner is, but for section 241 (1) (c) to (e) and (4), eligible for the recovery benefit, or

(i) for the month of January or February 2021, the child is a dependent child, within the meaning of the Employment and Assistance Act or the Employment and Assistance for Persons with Disabilities Act, of the individual, or

(C) the individual is the parent who primarily fulfils the responsibility for the care and upbringing of the child and is not a shared-custody parent in respect of the child, and

(D) the child is not a person in respect of whom a special allowance under the Children's Special Allowances Act (Canada) is payable for December 2020;

"eligible spouse", in relation to an individual, means, subject to subsection (2), another individual who, for the month of January or February 2021, is the spouse, within the meaning of the Employment and Assistance Act or the Employment and Assistance for Persons with Disabilities Act, of the individual;

(b) the relevant income of the cohabiting spouse or common-law partner of the individual for the 2019 taxation year, if the cohabiting spouse or common-law partner is the individual's qualified relation for the purposes of determining the amount of the recovery benefit under section 241 (1);

(a) another individual who, on December 18, 2020, is the cohabiting spouse or common-law partner of the individual, if the cohabiting spouse or common-law partner is, but for section 241 (1) (c) to (e) and (4), eligible for the recovery benefit, or

(iii) the individual is the parent who primarily fulfils the responsibility for the care and upbringing of the child and is not a shared-custody parent in respect of the child,

(v) the individual does not have a cohabiting spouse or common-law partner who is, but for section 241 (4), eligible for the recovery benefit, and

(vi) the child is not a person in respect of whom a special allowance under the Children's Special Allowances Act (Canada) is payable for December 2020;

"recovery benefit" means the recovery benefit under this Part, or under section 241 (1) or (3) if specified, for the 2019 taxation year;

"relevant income", in relation to an individual for the 2019 taxation year, means,

(a) if section 114 of the federal Act applies to the individual in respect of the 2019 taxation year, the amount determined under section 114 (a) of the federal Act in respect of the individual for the 2019 taxation year,

(b) if the individual was not resident in Canada at any time in the 2019 taxation year, the amount that would have been the individual's income for the 2019 taxation year had the individual been resident in Canada throughout the 2019 taxation year,

(d) if the individual became bankrupt in 2019, the individual's income for all taxation years that end in 2019, including the individual's income for the taxation year before, during and after the period of bankruptcy and any amount determined under paragraph (a), (b) or (c);

"shared-custody parent" has the same meaning as in section 122.6 of the federal Act except that the reference to "qualified dependant" in that section is to be read as referring to a child who, on December 18, 2020, is less than 19 years of age.

(2) For the purposes of this Part, an individual is not an eligible spouse if information required by the commissioner in respect of that individual as an eligible spouse is not received by the commissioner on or before June 30, 2021.

Eligibility for recovery benefit

241 (1) Subject to subsection (2), an individual is eligible for the recovery benefit if the individual meets all the following requirements:

(A) a parent residing with the individual's child who is a qualified relation of the individual, or

(i) has filed a return of income under section 150 of the federal Act for the 2019 taxation year, or

(d) if the individual has a cohabiting spouse or common-law partner on December 18, 2020,

(i) the cohabiting spouse or common-law partner has filed a return of income under section 150 of the federal Act for the 2019 taxation year,

(ii) the individual has claimed a deduction under section 118 (1) (a) of the federal Act for the 2019 taxation year in respect of the cohabiting spouse or common-law partner, or

(iii) the cohabiting spouse or common-law partner was not resident in Canada at any time in the 2019 taxation year;

(e) the individual has applied for the recovery benefit in accordance with section 243 of this Act.

(2) An individual is not eligible for the recovery benefit under subsection (1) if the individual

(b) is, on December 18, 2020, a person described in section 149 (1) (a) or (b) of the federal Act,

(d) is confined to a prison or similar institution for a period of at least 90 days that includes December 18, 2020.

(a) the individual receives any of the following for the month of January or February 2021:

(i) income assistance under the Employment and Assistance Act, other than a child who receives assistance under the authority of the Child in the Home of a Relative Program Transition Regulation, B.C. Reg. 48/2010;

(ii) a Provincial senior's supplement under the Employment and Assistance Act;

(iii) disability assistance under the Employment and Assistance for Persons with Disabilities Act, other than a child who receives assistance under the authority of the Child in the Home of a Relative Program Transition Regulation, B.C. Reg. 48/2010;

(iv) hardship assistance under the Employment and Assistance Act or the Employment and Assistance for Persons with Disabilities Act, and

(b) the commissioner receives, on or before June 30, 2021, information regarding the receipt of an amount described in paragraph (a) by the individual.

(4) Despite subsections (1) and (3) but subject to subsection (5), if an individual is the eligible spouse or cohabiting spouse or common-law partner of another individual on December 18, 2020 and both of those individuals would be, but for this subsection, eligible for the recovery benefit, only the individual that the commissioner designates is eligible for the recovery benefit.

(5) If an individual or the cohabiting spouse or common-law partner of the individual has a child referred to in paragraph (c) (i) of the definition of "eligible relation", subsection (4) of this section does not apply unless the individual and the cohabiting spouse or common-law partner are the eligible spouses of each other.

(6) If a child is an eligible relation of more than one individual, or is an eligible relation of an individual and the qualified relation of another individual, and those individuals would be, but for this subsection, eligible for a recovery benefit with the child as the eligible relation or qualified relation, only the individual that the commissioner designates is eligible for the amount of the recovery benefit with the child as an eligible relation or qualified relation.

Amount of recovery benefit

242 (1) The amount of the recovery benefit for an individual who is eligible for the recovery benefit under section 241 (1) is the greatest of the following:

(a) if an individual has no qualified relation, the positive amount, if any, equal to $500 less 2% of the amount by which the individual's relevant income for the 2019 taxation year exceeds $62 500;

(b) if an individual has a qualified relation, the positive amount, if any, equal to $1 000 less 2% of the amount by which the individual's family income exceeds $125 000;

(i) an individual has no qualified relation and the individual's relevant income for the 2019 taxation year is equal to or less than $87 500, or

(ii) an individual has a qualified relation and the individual's family income is equal to or less than $175 000.

(2) The amount of the recovery benefit for an individual who is eligible for the recovery benefit under section 241 (3) is as follows:

Application for tax credit

243 (1) An individual who wishes to claim the recovery benefit under section 241 (1) must file with the commissioner an application for the recovery benefit.

(2) If the individual has a cohabiting spouse or common-law partner who is a qualified relation on December 18, 2020, the individual must claim that cohabiting spouse or common-law partner as the individual's qualified relation in the application.

(3) The application must be filed in the form and manner, and contain the information, required by the commissioner.

Determination of tax credit

244 (1) The commissioner must examine an application and other information or records filed under section 243 and determine whether the individual is eligible for the recovery benefit under section 241 (1) or (3) and the amount of the recovery benefit.

(2) The commissioner may determine whether an individual is eligible for the recovery benefit under section 241 (3) and the amount of the recovery benefit.

(a) whether an individual is eligible for the recovery benefit under section 241 (1) or (3), or

(4) Subject to subsection (5), the commissioner must send to an individual a notice of determination after determining whether the individual is eligible for the recovery benefit and, if eligible, the amount of the recovery benefit.

(5) The commissioner is not required to send to an individual a notice of determination if

(a) there is no change in the amount of the recovery benefit for the individual after the redetermination, or

(b) the commissioner designates under section 241 (4) the cohabiting spouse or common-law partner of the individual as eligible for the recovery benefit.

(6) A notice may be in the form and sent in the manner determined by the commissioner.

(a) is not bound by an application or other information or records supplied by or on behalf of, or in respect of an individual, and

(b) may determine the amount of recovery benefit despite the supply of the application or other information or records by or on behalf of, or in respect of the individual.

Payment of recovery benefit

245 (1) An overpayment on account of an individual's liability under this Act for the 2019 taxation year is deemed to have arisen if the commissioner determines the individual is eligible for the recovery benefit.

(2) If an overpayment is deemed to have arisen under subsection (1), the Provincial minister must pay, out of the consolidated revenue fund, the amount of the overpayment.

(3) The amount of the overpayment is the amount of the recovery benefit determined under section 242.

(4) Despite subsection (3) of this section or section 16 of the Financial Administration Act,

(a) if after a redetermination the amount of the recovery benefit increases by less than $10, the amount of the increase in the overpayment payable is deemed to be nil, or

(b) a payment of an amount related to this Part of less than $10 must not be made, in any other case.

(5) If an amount is paid under this Part to an individual and, after payment, the commissioner determines that some or all of the amount is to be paid under this Part to the cohabiting spouse or common-law partner of the individual, the amount determined by the commissioner as to be paid to the cohabiting spouse or common-law partner of the individual is deemed to have been paid to the cohabiting spouse or common-law partner of the individual.

(6) If an individual is eligible for the recovery benefit under section 241 (1), the amount payable under subsection (2) of this section must be paid by electronic funds transfer.

(7) Despite the Financial Administration Act and the Interest on Overdue Accounts Payable Regulation, B.C. Reg. 215/83, no interest is payable by the government with respect to the amount payable under subsection (2).

Notice to commissioner

246 (1) An individual who receives the recovery benefit further to being eligible under section 241 (1) must file a notice with the commissioner if

(a) the individual is notified of a change in the individual's relevant income for the 2019 taxation year that would result in a reduction in the amount of the individual's recovery benefit,

(b) the individual has a cohabiting spouse or common-law partner who is a qualified relation on December 18, 2020 and the individual is notified of a change in the cohabiting spouse or common-law partner's relevant income for the 2019 taxation year that would result in a reduction in the amount of the individual's recovery benefit, or

(2) The individual must file the notice with the commissioner on or before the later of

(b) the date that is 90 days after the individual is notified of the change referred to in subsection (1) (a) or (b).

(3) The notice must be filed in the form and manner, and contain the information, required by the commissioner.

(4) In addition to the notice, the individual must file with the notice any other information or records required by the commissioner.

Determination period

247 The commissioner may determine eligibility for the recovery benefit, or determine and impose any penalty payable under this Part, within the following time periods:

(i) 3 years after the date the initial notice of determination is sent under section 244 [determination of tax credit];

(B) the day on which the commissioner receives notification from the taxing authority under this Act that the individual or the individual's cohabiting spouse or common-law partner has been issued a notice of assessment that has a change relevant to the calculation of the individual's recovery benefit;

(ii) to give effect to a waiver or cancellation of a penalty under section 251 [waiver or cancellation of penalty], or

(iii) to give effect to a decision of the Provincial minister under section 255 [appeal to Provincial minister] or a decision of a court under section 256 [appeal to court].

Overpayment cannot be attached or assigned

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

Imposition of administrative penalty

249 (1) The commissioner may determine and impose a penalty on an individual who is liable to a penalty under section 250.

(2) If the commissioner imposes a penalty on an individual, the commissioner must send to the individual a notice of determination that specifies the amount of the penalty imposed.

Administrative penalties

(b) an amount by which the recovery benefit that would have been claimed by the individual, if the amount of the recovery benefit had been determined on the basis of the information provided in the application, return, report, notice or other record, exceeds the recovery benefit for which the individual is eligible.

(2) An individual who knowingly or under circumstances amounting to gross negligence in the carrying out of any duty or obligation imposed under this Part makes, or participates in, assents to or acquiesces in the making of, a statement or omission in an application, return, report, notice or other record filed with the commissioner that results in an excess payment is liable to a penalty equal to the greater of

(3) An individual who fails to file with the commissioner a notice in accordance with section 246 is liable, in respect of each failure, to a penalty of $10 for each day after which the notice was required to be filed under that section, to a maximum of $250.

Waiver or cancellation of penalty

251 The commissioner may at any time waive or cancel all or part of any penalty otherwise payable by an individual under this Part.

Interest payable to government under this Part

252 (1) If an amount is deemed under section 258 [individual to repay amount] to be an amount payable by an individual, the individual is liable to pay interest on the amount from the date the amount to be repaid was paid under this Part to the individual until the date of payment.

(2) An individual must pay to the government interest on a penalty imposed under this Part as follows:

(a) in the case of a penalty under section 250 (2) [gross negligence], from the date on which the application, return, report, notice or other record was filed until the date of payment;

(b) in the case of a penalty under section 250 (3) [failure to file notice], from the date of the notice of determination that specifies the amount of the penalty imposed until the date of payment.

(3) Interest payable to the government under this Part must be calculated at the prescribed rate and in the prescribed manner.

No interest if full payment within 30 days

(a) a notice of determination or statement of account sent to an individual by the commissioner specifies an amount that is owing to the government under this Part by the individual, and

(b) the individual, within 30 days after the date on the notice of determination or statement of account, pays the amount owing in full,

interest is not payable on the amount owing from the date on the notice of determination or statement of account until the date of payment.

Waiver or cancellation of interest

254 The commissioner may at any time waive or cancel all or part of any interest otherwise payable by an individual under this Part.

Appeal to Provincial minister

(a) a determination of eligibility for or the amount of the recovery benefit under section 244 for which a notice of determination is issued;

(ii) the date that is 90 days after the date on the notice of determination in respect of the matter being appealed, and

(b) must be made by serving a notice of appeal on the Provincial minister by mailing the notice to that minister.

(3) The appellant must set out in the notice of appeal a statement of all material facts and the reasons in support of the appeal.

(4) On receipt of all relevant information from the commissioner and the notice of appeal, the Provincial minister must

(5) The Provincial minister may authorize any officer of the ministry to perform and exercise duties imposed and powers conferred on the Provincial minister by this section as may in the Provincial minister's opinion be conveniently performed or exercised by that officer.

(6) The performance or exercise by the officer authorized under subsection (5) of the duties or powers referred to in that subsection is of the same effect as if the duties or powers were performed or exercised by the Provincial minister.

Appeal to court

256 (1) A decision of the Provincial minister under section 255 (4) in respect of an appeal to the Provincial minister under section 255 (1) may be appealed to the Supreme Court by way of a petition proceeding.

(2) The Supreme Court Civil Rules relating to petition proceedings, other than Rule 18-3, apply to appeals under this section.

(3) A petition must be filed in the court registry within 90 days after the date of the Provincial minister's decision.

(4) In a petition filed under this section, the government must be designated "Her Majesty the Queen in right of the Province of British Columbia".

(5) Within 14 days after the filing of a petition under this section, the petition must be served on the government in accordance with section 8 of the Crown Proceeding Act.

(6) An appeal under this section is a new hearing that is not limited to the evidence and issues that were before the Provincial minister.

Irregularities

257 A determination made under this Part must not be varied or disallowed by a court because of an irregularity, informality, omission or error on the part of a person in the observation of any directory provision up to the date of the notice of determination.

Individual to repay amount

258 If it appears from an inspection, audit, examination or investigation or from other information available to the commissioner that an amount has been paid under this Part to an individual who is not entitled to receive that amount, the amount paid is deemed to be an amount that became payable by the individual to the government on the day on which the amount was paid to the individual.

Liability for amounts owing to government

(a) the amount by which the recovery benefit that was paid to the individual under this Part exceeds the recovery benefit that the individual is entitled to receive;

(b) the amount of any penalties imposed on the individual under section 249 [imposition of administrative penalty];

Collection of amounts owing to government

260 (1) Division 2 of Part 7 [Recovery of Amounts Owing] of the Speculation and Vacancy Tax Act applies for the purpose of collecting an amount that is owing to the government under this Part, except that, in addition to any other necessary modifications, references in that Division to the "administrator" are to be read as references to the "commissioner" under this Part.

(2) Neither the giving of a notice of appeal by a person nor a delay in the hearing of an appeal

(a) affects the date an amount that is owing to the government under this Part and that is the subject matter of the appeal is payable under this Part,

(b) affects the amount of interest payable on an amount that is owing to the government under this Part and that is the subject matter of the appeal, or

(c) delays the collection of an amount that is owing to the government under this Part and that is the subject matter of the appeal, or any interest payable under this Part on that amount.

Powers of audit

261 Without limiting any provision of this Act or the federal Act, for the purpose of determining eligibility for the tax credit under this Part, the commissioner has powers equivalent to the federal minister under sections 231 to 231.5 and 231.7 of the federal Act, and for that purpose those sections apply.

Delegation of powers

262 (1) The commissioner may authorize any other officer of the ministry to perform and exercise duties imposed and powers conferred on the commissioner by this Part as may in the commissioner's opinion be conveniently performed or exercised by that officer.

(2) The performance or exercise by the officer authorized under subsection (1) of the duties or powers referred to in that subsection is of the same effect as if the duties or powers were performed or exercised by the commissioner.

Application of other provisions

263 (1) A tax credit under this Part is not to be considered in applying any of the following provisions:

(f) section 37 [failure to file return or corporate return and failure to provide information];

(2) The following provisions do not apply for the purposes of this Part, except to the extent provided in this Part:

(d) section 38 [failure to report income, false statement or omission and burden of proof on appeal];

(k) section 47 [administration, interest, garnishment and proceedings to collect];

(s) section 59 [inspections, privilege, information returns and corporate execution];

Offences – recovery benefit

(a) makes, or participates in, assents to or acquiesces in the making of, a false or deceptive statement in a notice, application or other record required to be filed or given under this Part;

(b) destroys, alters, mutilates, hides or otherwise disposes of a record to evade payment of an amount to be paid to the government under this Part;

(c) makes or uses, or participates in, assents to or acquiesces in the making or use of, a record in a false or deceptive manner in order to obtain the recovery benefit;

(d) wilfully, in any manner, attempts to obtain or claim an increased recovery benefit to which the person is not entitled, or in an amount that is greater than that amount of recovery benefit to which the person is entitled under this Part;

(e) conspires with any person to do anything described in paragraphs (a) to (d);

(f) fails to comply with any of sections 231 to 231.5 of the federal Act, as they apply for the purposes of this Part.

Penalties

Limitation period for prosecution

266 The time limit for laying an information for an offence under this Part is 6 years after the date when the act or omission that is alleged to constitute the offence occurred.

When documents are filed with or given to commissioner or Provincial minister

267 (1) If, under this Part, a document must or may be filed with or given to the commissioner or Provincial minister, the document is conclusively deemed to be filed or given on the date it is received by the commissioner or minister, as the case may be.

(2) If, under this Part, a document must or may be given to the Provincial minister, the document is conclusively deemed to have been given if delivered to the office of the deputy Provincial minister.

Administration

268 (1) Despite any collection agreement, the Provincial minister must administer and enforce this Part.

(2) Despite section 69 (3) [collection agreement], the federal minister is not authorized to use, perform or exercise any of the powers, duties or discretions of the Provincial minister under this Part.

Power to make regulations

269 (1) Without limiting section 48 (1) and (2) [power to make regulations], the Lieutenant Governor in Council may make regulations as follows:

(a) prescribing interest rates and the manner of calculating interest for the purposes of this Part;

(2) A regulation made under this section may be made retroactive to December 18, 2020 or a later date, and if made retroactive is deemed to have come into force on the specified date.

Repeal by regulation

270 After June 30, 2024, the Lieutenant Governor in Council may repeal this Part by regulation.

SECTION 42: [Insurance Premium Tax Act, section 18] removes the requirement to seek leave from the British Columbia Court of Appeal to appeal a decision of the British Columbia Supreme Court.

42 Section 18 (6) of the Insurance Premium Tax Act, R.S.B.C. 1996, c. 232, is repealed.

SECTION 43: [Insurance Premium Tax Act, section 38] adds authority for the disclosure of certain information for fiscal policy formulation or evaluation.

(c.01) to an official or employee of the ministry of the minister for the purposes of the formulation or evaluation of fiscal policy, .

SECTION 44: [International Business Activity Act, section 39] removes the requirement to seek leave from the British Columbia Court of Appeal to appeal a decision of the British Columbia Supreme Court.

44 Section 39 (6) of the International Business Activity Act, S.B.C. 2004, c. 49, is repealed.

SECTION 45: [Land Tax Deferment Act, section 13.1] adds authority for the use and disclosure of certain information for fiscal policy formulation or evaluation.

45 Section 13.1 (2) and (3) of the Land Tax Deferment Act, R.S.B.C. 1996, c. 249, is amended by adding the following paragraph:

(a.1) to an official or employee of the ministry for the purposes of the formulation or evaluation of fiscal policy, .

SECTION 46: [Logging Tax Act, section 14] adds authority for the disclosure of certain information for fiscal policy formulation or evaluation.

46 Section 14 (1) of the Logging Tax Act, R.S.B.C. 1996, c. 277, is amended by adding the following paragraph:

(d.1) to an official or employee of the ministry of the minister for the purpose of the formulation or evaluation of fiscal policy; .

SECTION 47: [Logging Tax Act, section 25] removes the requirement to seek leave from the British Columbia Court of Appeal to appeal a decision of the British Columbia Supreme Court.

SECTION 48: [Mineral Tax Act, section 22] clarifies paragraph (d) and removes a reference in paragraph (e) to the requirement to seek leave from the British Columbia Court of Appeal to appeal a decision of the British Columbia Supreme Court.

48 Section 22 (2) of the Mineral Tax Act, R.S.B.C. 1996, c. 291, is amended by repealing paragraphs (d) and (e) and substituting the following:

(d) one year after the date of a decision of the Supreme Court if a decision by the minister under section 26 was appealed under section 27;

(e) one year after the date of a decision of the Court of Appeal if a decision of the Supreme Court under section 27 was appealed.

SECTION 49: [Mineral Tax Act, section 28] removes the requirement to seek leave from the British Columbia Court of Appeal to appeal a decision of the British Columbia Supreme Court.

SECTION 50: [Motor Fuel Tax Act, section 1] expands the definition of "person with disabilities" to

remove the requirement that service with Her Majesty's forces be active service in a war, and
include individuals who reside on a reserve and receive disability assistance or a supplement from the government of Canada under a program with criteria that are substantially equivalent to the Employment and Assistance for Persons with Disabilities Act.

50 Section 1 of the Motor Fuel Tax Act, R.S.B.C. 1996, c. 317, is amended in the definition of "person with disabilities"

(a) in paragraph (b) by striking out "active service in any war" and substituting "service", and

(c.1) resides on a reserve, within the meaning of the Indian Act (Canada), and receives, or would receive but for having reached 65 years of age, disability assistance or a supplement from the government of Canada, provided that the criteria for the disability assistance or supplement are substantially equivalent to the criteria for receiving disability assistance or a supplement under the Employment and Assistance for Persons with Disabilities Act, .

SECTION 51: [Motor Fuel Tax Act, section 51] removes the requirement to seek leave from the British Columbia Court of Appeal to appeal a decision of the British Columbia Supreme Court.

SECTION 52: [Motor Fuel Tax Act, section 62] adds authority for the disclosure of certain information for fiscal policy formulation or evaluation.

(c.1) to an official or employee of the ministry of the minister for the purpose of the formulation or evaluation of fiscal policy, .

SECTION 53: [Police Act, section 66.21] requires the solicitor general to provide, by the first day of the taxation year, an estimate of policing costs for contributing areas for the previous taxation year.

(a) in subsection (2) by striking out "a taxation year" and substituting "the previous taxation year", and

(b) in subsection (5) by striking out "April 1" and substituting "January 1" and by striking out "the taxation year" and substituting "the previous taxation year".

SECTION 54: [Police Act, section 66.3] requires the total amount to be raised by police taxes for a taxation year to be no more than 50% of the solicitor general's estimate of policing costs for contributing areas for the previous taxation year.

54 Section 66.3 (2) is amended by striking out "the taxation year" and substituting "the previous taxation year".

SECTION 55: [Ports Property Tax Act, section 5.1]

sets out new annual compensation amounts, including adjustments for inflation, for municipalities that host designated ports property;
removes the requirement to adjust these amounts for inflation for 2021, as inflation to the year 2021 is included in the new annual compensation amounts;
adds the District of Stewart as a municipality that receives compensation;
updates the names of the municipalities listed in the table.

(a) with respect to the 2021 taxation year, the minister must pay out of the consolidated revenue fund to that municipality, in accordance with subsection (4), the amount indicated opposite the name of the municipality:

(b) in subsection (2) (b) by striking out "with respect to the 2010 and subsequent taxation years" and substituting "with respect to the 2022 and subsequent taxation years", and

SECTION 56: [Property Transfer Tax Act, section 21] removes the requirement to seek leave from the British Columbia Court of Appeal to appeal a decision of the British Columbia Supreme Court.

56 Section 21 (6) of the Property Transfer Tax Act, R.S.B.C. 1996, c. 378, is repealed.

SECTION 57: [Property Transfer Tax Act, section 22]

sets out the content of a notice of arbitration to be used by a taxpayer who elects to have a fair market value determination made by arbitration instead of appealing a decision of the minister to the Supreme Court;
clarifies that a taxpayer who elects to seek arbitration loses the right to appeal the decision of the minister to the Supreme Court.

Arbitration for fair market value determination

22 (1) Within the time set out in section 21 (3), a person who receives a minister's notice under section 19 (5) of a minister's decision may, instead of appealing the decision under section 21, serve on the minister a notice of arbitration in which the person

(a) requires that a determination of fair market value be made by arbitration in accordance with the regulations, and

(i) that an issue other than a determination of fair market value may not be determined by arbitration, and

(ii) that, by serving the notice of arbitration, the person loses the right under section 21 to appeal the minister's decision to the Supreme Court.

(2) Subject to section 22.2, a person who serves a notice of arbitration under subsection (1) loses the right under section 21 to appeal the minister's decision to the Supreme Court.

SECTION 58: [Property Transfer Tax Act, sections 22.1 to 22.4]

limits the arbitrator's jurisdiction to determinations of fair market value;
requires the minister to advise a person who serves a notice of arbitration requiring the determination of a matter other than fair market value that the matter may not be determined by arbitration and that the person may either continue to require that the fair market value determination be made by arbitration, or commence an appeal of the decision to the Supreme Court;
requires an arbitrator who has made a determination of fair market value to refer the matter back to the administrator for reconsideration;
provides a transition rule for the application of section 22 and authorizes the Lieutenant Governor in Council to repeal that transition rule by regulation.

Jurisdiction of arbitrator

22.1 The jurisdiction of an arbitrator under section 22 is limited to determinations of fair market value.

Matters not suitable for arbitration

22.2 (1) If, after the minister receives a notice of arbitration under section 22 (1), the minister determines that a person requires the determination of an issue other than the determination of fair market value, the minister must advise the person

(i) cancel the notice of arbitration and appeal the minister's decision to the Supreme Court within 90 days after the date on the minister's notice under section 19 (5) of the minister's decision, in accordance with section 21, or

(ii) continue to require an arbitration for the sole purpose of a determination of fair market value.

(2) The minister may, in writing, delegate the minister's powers and duties under this section.

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

Arbitrator must refer decision back to administrator

22.3 An arbitrator under section 22 who makes a determination of fair market value must refer the decision of the minister under section 19 back to the administrator for reconsideration.

Transition – arbitration

22.4 (1) Section 22 applies in relation to a decision of the minister if the date on the minister's notice under section 19 (5) of the minister's decision is on or after April 20, 2021.

(2) Section 22, as it read immediately before the date on which this section comes into force, applies in relation to a decision of the minister if the date on the minister's notice under section 19 (5) of the minister's decision is before April 20, 2021.

SECTIONS 59 AND 60: [Property Transfer Tax Act, sections 32 and 32.1] adds authority for the use and disclosure of certain information for fiscal policy formulation or evaluation.

(c.1) to an official or employee of the ministry for the purposes of the formulation or evaluation of fiscal policy; .

(d) to an official or employee of the ministry for the purposes of the formulation or evaluation of fiscal policy.

SECTION 61: [Provincial Sales Tax Act, section 8.1] clarifies that an agent acting for a principal who is a registrant should provide the principal's registration number.

61 The Provincial Sales Tax Act, S.B.C. 2012, c. 35, is amended by adding the following section to Division 1 of Part 1:

Registration number of principal

8.1 If a person acts as agent of a principal who is a registrant, a reference to the person's registration number is a reference to the registration number of the principal.

SECTION 62: [Provincial Sales Tax Act, section 37]

adds a subsection under which a person who purchases a vehicle in British Columbia is deemed to be a purchaser, and must therefore pay tax, unless the person provides a registration number or declares that the vehicle is purchased for resale;
adds a subsection that exempts motor dealers from the application of the new deeming provision and that allows the Lieutenant Governor in Council to prescribe other circumstances in which that provision does not apply.

(a) in subsection (3) by striking out "If a collector" and substituting "Subject to subsection (7), if a collector", and

(7) If a collector sells a vehicle at a sale in British Columbia to a person, that person is deemed to be a purchaser of the vehicle unless the person provides to the collector, at or before the time the tax is payable,

(b) if the person does not have a registration number, a declaration in a form acceptable to the director that the vehicle is being purchased for resale.

(a) if the person is registered as a motor dealer under the Motor Dealer Act, or

SECTION 63: [Provincial Sales Tax Act, section 139] removes water that is dispensed by a vending machine, soda fountain, soda gun or similar equipment from the food products that are exempt from tax.

63 Section 139 (b) is amended by adding ", unless it is a beverage described in paragraph (a)" after "water in liquid or frozen form".

SECTION 64: [Provincial Sales Tax Act, section 172.1] adds a reference to the location of the seller and exempts from the registration requirement sellers of exempt software or telecommunication services.

(a) in subsection (1.1) by adding "located outside British Columbia" after "Subject to subsection (2), a person", and

(2) Subsections (1) and (1.1) do not apply to a person if the person sells or provides only tangible personal property, software or a telecommunication service that is exempt from tax imposed under this Act.

SECTION 65: [Provincial Sales Tax Act, section 172.2] adds a reference to tangible personal property for consistency.

65 Section 172.2 (1) (b) is amended by adding "all retail sales and leases of tangible personal property and" after "in paragraph (a) from".

SECTION 66: [Provincial Sales Tax Act, section 177] exempts an agent, when acting for a principal, from the prohibition on using another person's registration number.

(a) in subsection (3) by striking out "A person must not" and substituting "Subject to subsection (4), a person must not", and

(4) When a person is acting as agent of a principal, the person may use the registration number issued to the principal.

SECTION 67: [Provincial Sales Tax Act, section 203] ensures that the director's authority to impose a penalty on a collector under specified circumstances applies to section 39 (4) of the Act.

67 Section 203 (1.1) is amended by adding "39 (4)," after "section 37 (3), (4), (5) or (6),".

SECTION 68: [Provincial Sales Tax Act, section 212] removes the requirement to seek leave from the British Columbia Court of Appeal to appeal a decision of the British Columbia Supreme Court.

SECTION 69: [Provincial Sales Tax Act, section 228] adds authority for the disclosure of certain information for fiscal policy formulation or evaluation.

(d.1) to an official or employee of the ministry of the minister for the purpose of the formulation or evaluation of fiscal policy; .

SECTION 70: [Special Accounts Appropriation and Control Act, section 9.4] ceases the annual allocation of additional amounts to the British Columbia Training and Education Savings Program special account after the 2020 calendar year.

70 Section 9.4 (2) (b) of the Special Accounts Appropriation and Control Act, R.S.B.C. 1996, c. 436, is amended by striking out "in 2014 and each subsequent calendar year" and substituting "for each calendar year from 2014 to 2020".

SECTION 71: [Speculation and Vacancy Tax Act, section 2] amends the meaning of "beneficial owner" to exclude an individual whose beneficial interest in a residential property is contingent on the death of another individual.

71 Section 2 (a) of the Speculation and Vacancy Tax Act, S.B.C. 2018, c. 46, is repealed and the following substituted:

(a) the individual has, in respect of the interest in the residential property, a beneficial interest, other than an interest that is contingent on the death of another individual; .

SECTION 72: [Speculation and Vacancy Tax Act, section 5] updates a reference.

72 Section 5 (1) is amended in paragraphs (a), (b) and (c) of the definition of "reported total income" by striking out "of line 150 of a return" and substituting "of line 15000 of a return".

SECTION 73: [Speculation and Vacancy Tax Act, section 20.1] exempts an owner of residential property from tax in respect of the owner's interest in the property if the interest is held as a trustee of a trust for the benefit of a registered charity.

Exemption for trustees of trust for benefit of registered charity

20.1 An owner of residential property is, for a calendar year, exempt from tax in respect of the owner's interest in the residential property if the owner is, at the end of the last day of the calendar year, a person whose interest in the residential property is held as a trustee of a trust for the benefit of a registered charity as defined in section 248 (1) of the federal Act.

SECTION 74: [Speculation and Vacancy Tax Act, section 67] ensures that if the administrator assesses an owner of residential property for an assessable amount, such assessment must be made within a clearly specified time period.

(ii) the date on which tax is required under this Act to be paid for the calendar year.

SECTION 75: [Speculation and Vacancy Tax Act, section 99] removes the requirement to seek leave from the British Columbia Court of Appeal to appeal a decision of the British Columbia Supreme Court.

SECTION 76: [Speculation and Vacancy Tax Act, section 105] excludes the trustees of a trust for the benefit of a registered charity from the imposition of joint and several liability for the amount of tax assessed under the Act and interest payable on that amount.

(a.1) section 20.1 [exemption for trustees of trust for benefit of registered charity]; .

SECTION 77: [Speculation and Vacancy Tax Act, section 107] excludes the trustees of a trust for the benefit of a registered charity to whom a defaulting owner transfers an interest in property from the imposition of joint and several liability for the amount of tax assessed under the Act and interest payable on that amount.

(a.1) section 20.1 [exemption for trustees of trust for benefit of registered charity]; .

SECTION 78: [Speculation and Vacancy Tax Act, section 120]

adds an override of other enactments and laws that allow for certain information to be provided or used or for access to it;
adds a requirement that other enactments, under which certain information may be provided or its inspection allowed for, must be prescribed.

(b) in subsection (5) (j) by striking out "under an enactment" and substituting "under a prescribed enactment".

SECTIONS 79 AND 80: [Taxation (Rural Area) Act, sections 3 and 3.1] adds authority for the use and disclosure of certain information for fiscal policy formulation or evaluation.

79 Section 3 (1) of the Taxation (Rural Area) Act, R.S.B.C. 1996, c. 448, is amended by adding the following paragraph:

(c.1) to an official or employee of the ministry for the purposes of the formulation or evaluation of fiscal policy, .

(d) to an official or employee of the ministry for the purposes of the formulation or evaluation of fiscal policy.

SECTION 81: [Tobacco Tax Act, section 2] increases the tax amounts consumers must pay when purchasing tobacco products.

(a) in subsections (2) and (2.1) (b) by striking out "29.5¢" and substituting "32.5¢",

(b) in subsection (2.1) (a) by striking out "$5.90" and substituting "$6.50", and

SECTION 82: [Tobacco Tax Act, section 24] removes the requirement to seek leave from the British Columbia Court of Appeal to appeal a decision of the British Columbia Supreme Court.

SECTION 83: [Vancouver Charter, section 397] makes housekeeping amendments.

(b) in paragraph (a) by striking out "give a notice of assessment" and substituting "provide an assessment notice".

Transitional Provision

SECTION 84: [Provincial Sales Tax Act transition – retroactive regulation-making power] creates the authority under the Provincial Sales Tax Act to make certain regulations retroactive to specified dates in specified circumstances.

Provincial Sales Tax Act transition – retroactive regulation-making power

84 (1) A regulation made under section 241 of the Provincial Sales Tax Act on or before December 31, 2021 may be made retroactive to March 11, 2019 or a later date, and if made retroactive is deemed to have come into force on the specified date.

(2) A regulation made under section 242 (1), (2) or (3) or 246 (f) of the Provincial Sales Tax Act on or before March 31, 2022, in respect of the Provincial Sales Tax Rebate on Select Machinery and Equipment Regulation, B.C. Reg. 78/2021, may be made retroactive to April 1, 2021 or a later date, and if made retroactive is deemed to have come into force on the specified date.

Commencement

85 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