Explanatory Notes

 
Assessment Act

SECTION 1: [Assessment Act, section 10] permits the assessment roll to be revised if improvements on land are substantially damaged or destroyed after October 31 and before the next January 1.

SECTION 2: [Assessment Act, section 18] establishes, for property that is substantially damaged or destroyed after October 31 and before the next January 1, that the valuation of the property is based on the physical condition of the property on December 31 following the valuation date and not October 31.

 
Greater Vancouver Transportation Authority Act

SECTION 3: [Greater Vancouver Transportation Authority Act, section 143] permits the parking site roll to be revised if land or improvements that are a parking site are substantially damaged or destroyed after October 31 and before the next January 1.

 
Income Tax Act

SECTION 4: [Income Tax Act, section 8]

• defines terms as a result of changes to the definitions in the Income Tax Act (Canada) that were formerly relied on in this section;
• removes the definition of "qualified dependant" that is no longer necessary;
• provides that a person is not an eligible individual or a qualified relation in specified circumstances;
• for the purposes of this section,
  • includes in an individual's income for a taxation year any income earned while the individual was not resident in Canada in the year, and
  • provides that an individual's income for the year in which the individual became a bankrupt is the individual's income for the entire calendar year.

SECTION 5: [Income Tax Act, section 39.1]

• provides for a penalty for a third party involved in the making or furnishing of a false statement;
• authorizes the federal minister to refrain from levying or to reduce a penalty if the person is required to pay a penalty under the Income Tax Act (Canada) in respect of the same false statement.

SECTION 6: [Income Tax Act, section 68.1]

(a) clarifies that an avoidance transaction under the anti-avoidance rules includes a transaction that may reasonably be considered to be a transaction that would result, directly or indirectly, in a misuse or abuse of the regulations made under the Act, and

(b) clarifies that tax effects that would otherwise result from the application of provisions of the regulations may be ignored in determining the tax consequences if there is an avoidance transaction.

 
International Financial Activity Act

SECTION 7: [International Financial Activity Act, section 20] includes in the definition of "transaction price" an amount payable.

SECTION 8: [International Financial Activity Act, section 51]

• clarifies that an avoidance transaction under the anti-avoidance rules includes a transaction that may reasonably be considered to be a transaction that would result, directly or indirectly, in a misuse or abuse of the regulations made under the Act;
• clarifies that tax effects that would otherwise result from the application of provisions of the regulations may be ignored in determining the tax consequences if there is an avoidance transaction.

SECTION 9: [International Financial Activity Act, section 58] authorizes an official to provide claimant information obtained under the Act for the purposes of administering or enforcing the International Financial Business (Tax Refund) Act, replaced by the International Financial Activity Act.

SECTION 10: [International Financial Activity Act, section 58.1] authorizes information obtained under the International Financial Business (Tax Refund) Act, replaced by the International Financial Activity Act, to be used for the purposes of administering or enforcing the International Financial Activity Act.

 
Property Transfer Tax Act

SECTION 11: [Property Transfer Tax Act section 18] permits a transferee to file a waiver with the administrator in order to extend the period during which the administrator must issue a notice of assessment, and consequentially amends subsections (6), (6.1) and (6.2) to clarify that a waiver filed under the new provisions affects the period during which a notice of assessment must be issued under subsections (5), (6), (6.1) or (6.2).

 
Provincial Revenue Statutes Amendment Act, 2004

SECTION 12: [Provincial Revenue Statutes Amendment Act, 2004, section 70] is consequential to amendments to transitional provisions to the Income Tax Act (Canada) respecting the business limit for the small business tax rate.

 
Taxation (Rural Area) Act

SECTION 13: [Taxation (Rural Area) Act, section 35] permits the collector to serve a demand issued under this section by email or fax in addition to personal service or registered mail.

 
Tobacco Tax Act

SECTION 14: [Tobacco Tax Act, section 58] clarifies that only a dealer who is authorized, and a person who is in the business of transporting goods for the public and is under contract with a dealer for the movement of tobacco, may transport tobacco in bulk quantities.

BILL 14 – 2006
SMALL BUSINESS AND REVENUE STATUTES AMENDMENT ACT, 2006

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

 
Assessment Act

1 Section 10 (3) of the Assessment Act, R.S.B.C. 1996, c. 20, is amended

(a) in paragraph (b) by adding ", substantially damaged" after "location", and

(b) by adding the following paragraph:

(c.1) improvements, other than a manufactured home, that are assessable under this Act

(i) are substantially damaged or destroyed after October 31 and before the following January 1, and

(ii) cannot reasonably be repaired or replaced before the following January 1; .

2 Section 18 is amended by adding the following subsections:

(3) Subsection (2) (a) does not apply to property referred to in section 10 (3) (b), (c) or (c.1).

(4) The actual value of property referred to in section 10 (3) (b), (c) or (c.1) for an assessment roll is to be determined as if on the valuation date the property was in the physical condition that it is in on December 31 following the valuation date.

 
Greater Vancouver Transportation Authority Act

3 Section 143 (3) of the Greater Vancouver Transportation Authority Act, S.B.C. 1998, c. 30, is amended by adding the following paragraph:

(c) land or improvements or both that are liable to assessment of parking tax

(i) are substantially damaged or destroyed after October 31 and before the following January 1, and

(ii) cannot reasonably be repaired or replaced before the following January 1.

 
Income Tax Act

4 Section 8 (1) of the Income Tax Act, R.S.B.C. 1996, c. 215, is repealed and the following substituted:

(1) In this section:

"adjusted income", in relation to an individual for a taxation year, means the total of all amounts each of which would be the income for the year of

(a) the individual, or

(b) the individual's qualified relation for the year

if, in computing that income, no amount were included in respect of a gain from a disposition of property to which section 79 of the federal Act applies;

"eligible individual", in relation to a taxation year, means an individual other than a trust who, at the end of December 31 of that year, is resident in British Columbia and is

(a) married or in a common-law partnership,

(b) a parent of a child, or

(c) at least 19 years of age;

"qualified relation", in relation to an individual for a taxation year, means the person who, at the end of the year, is the individual's cohabiting spouse or common-law partner as defined in section 122.6 of the federal Act.

(1.1) Despite the definitions of "eligible individual" and "qualified relation" in subsection (1), a person is not an eligible individual for a taxation year or a qualified relation of an individual for a taxation year if the person

(a) dies before the end of the year,

(b) is, at the end of the year, a person described in section 149 (1) (a) or (b) of the federal Act, or

(c) is, at the end of the year, confined to a prison or similar institution and has been confined for a period of, or periods the total of which in the year was, more than 6 months.

(1.2) Section 122.5 (6.2) [non-residents and part-year residents] and (7) (a) [effect of bankruptcy] of the federal Act applies for the purposes of this section.

5 The following section is added:

Application of federal provisions --
misrepresentation of tax matter by third party

39.1 (1) Section 163.2 of the federal Act applies for the purposes of this Act.

(2) If a collection agreement is in effect, the federal minister may refrain from levying or may reduce a penalty provided for in this section if the person who is liable to the penalty is required to pay a penalty under section 163.2 of the federal Act in respect of the same false statement.

6 Section 68.1 is amended

(a) in subsection (1) by repealing paragraph (d) of the definition of "avoidance transaction" and substituting the following:

(d) to be a transaction that would not result, directly or indirectly, in

(i) a misuse of the provisions of this Act or the regulations, or

(ii) an abuse having regard to those provisions, other than this section, read as a whole; , and

(b) in subsection (3) (d) by striking out "provisions of this Act" and substituting "provisions of this Act or the regulations".

 
International Financial Activity Act

7 Section 20 (1) of the International Financial Activity Act, S.B.C. 2004, c.49, is amended by striking out "amount paid" and substituting "amount paid or payable".

8 Section 51 is amended

(a) in subsection (1) by repealing paragraph (d) of the definition of "avoidance transaction" and substituting the following:

(d) to be a transaction that would not result, directly or indirectly, in

(i) a misuse of the provisions of this Act or the regulations, or

(ii) an abuse having regard to those provisions, other than this section, read as a whole; , and

(b) in subsection (3) (d) by striking out "provisions of this Act" and substituting "provisions of this Act or the regulations".

9 Section 58 (6) (c) is amended by adding the following subparagraph:

(iii.1) to an official solely for the purposes of the administration or enforcement of the International Financial Business (Tax Refund) Act and the regulations under that Act, .

10 The following section is added:

Use of information obtained under former Act

58.1 (1) Information obtained by or on behalf of the minister under the International Financial Business (Tax Refund) Act for the purposes of the administration or enforcement of that Act and the regulations made under that Act and information prepared from information obtained under that Act may be used by or on behalf of the minister for the purposes of the administration or enforcement of this Act and the regulations made under this Act.

(2) If information referred to in subsection (1) is used for the purposes of the administration or enforcement of this Act and the regulations, that information is deemed to be claimant information unless that information does not directly or indirectly reveal the identity of the person to whom the information relates.

 
Property Transfer Tax Act

11 Section 18 of the Property Transfer Tax Act, R.S.B.C. 1996, c. 378, is amended

(a) in subsections (6), (6.1) and (6.2) by adding "notice of" before "assessment", and

(b) by adding the following subsections:

(6.3) A transferee may file with the administrator a waiver for a transaction, in the form and containing the information required by the administrator, and in accordance with subsection (6.4) or (6.8).

(6.4) A transferee must file a waiver under subsection (6.3) before the date for issuing a notice of assessment set out in subsection (5), (6), (6.1) or (6.2) that applies, in the circumstances, to the transferee.

(6.5) If a waiver for a transaction has been filed under subsection (6.3), the administrator may issue a notice of assessment for the transaction at any time during the period that the waiver is in effect.

(6.6) A waiver filed under subsection (6.3) or (6.8) continues in effect until 6 months after the date the transferee files a notice revoking the waiver in accordance with subsection (6.7).

(6.7) A transferee may file with the administrator a notice revoking a waiver, in the form and containing the information required by the administrator.

(6.8) Despite subsection (6.4), a transferee may file with the administrator a new waiver for a transaction during the period of 6 months following the date the transferee filed with the administrator a notice revoking the prior waiver for the transaction.

 
Provincial Revenue Statutes Amendment Act, 2004

12 Section 70 of the Provincial Revenue Statutes Amendment Act, 2004, S.B.C. 2004, c. 40, is amended by striking out "January 1, 2006" and substituting "January 1, 2005".

 
Taxation (Rural Area) Act

13 Section 35 of the Taxation (Rural Area) Act, R.S.B.C. 1996, c. 448, is amended

(a) in subsections (1) and (2) by striking out ", by registered letter or by a letter served personally,"

(b) by adding the following subsection:

(2.1) A demand under this section may be served by

(a) personal service,

(b) registered mail, or

(c) electronic mail or fax. , and

(c) in subsections (5) and (6) by striking out "mailed or".

 
Tobacco Tax Act

14 Section 58 (4) of the Tobacco Tax Act, R.S.B.C. 1996, c. 452, is repealed and the following substituted:

(4) Subject to subsection (4.1), a person must not transport in British Columbia

(a) tobacco in quantities in excess of 50 cartons of cigarettes, or

(b) tobacco in bulk in excess of 10 kilograms.

(4.1) Subsection (4) does not apply to

(a) a dealer who is authorized to sell tobacco by a dealer's permit or by regulation, or

(b) a person who is in the business of transporting goods for members of the public and is under contract with a person referred to in paragraph (a) to move tobacco for that person.

Commencement

15 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

 
Assessment Act

SECTION 1: [Assessment Act, section 10] permits the assessment roll to be revised if improvements on land are substantially damaged or destroyed after October 31 and before the next January 1.

SECTION 2: [Assessment Act, section 18] establishes, for property that is substantially damaged or destroyed after October 31 and before the next January 1, that the valuation of the property is based on the physical condition of the property on December 31 following the valuation date and not October 31.

 
Greater Vancouver Transportation Authority Act

SECTION 3: [Greater Vancouver Transportation Authority Act, section 143] permits the parking site roll to be revised if land or improvements that are a parking site are substantially damaged or destroyed after October 31 and before the next January 1.

 
Income Tax Act

SECTION 4: [Income Tax Act, section 8]

• defines terms as a result of changes to the definitions in the Income Tax Act (Canada) that were formerly relied on in this section;
• removes the definition of "qualified dependant" that is no longer necessary;
• provides that a person is not an eligible individual or a qualified relation in specified circumstances;
• for the purposes of this section,
  • includes in an individual's income for a taxation year any income earned while the individual was not resident in Canada in the year, and
  • provides that an individual's income for the year in which the individual became a bankrupt is the individual's income for the entire calendar year.

SECTION 5: [Income Tax Act, section 39.1]

• provides for a penalty for a third party involved in the making or furnishing of a false statement;
• authorizes the federal minister to refrain from levying or to reduce a penalty if the person is required to pay a penalty under the Income Tax Act (Canada) in respect of the same false statement.

SECTION 6: [Income Tax Act, section 68.1]

(a) clarifies that an avoidance transaction under the anti-avoidance rules includes a transaction that may reasonably be considered to be a transaction that would result, directly or indirectly, in a misuse or abuse of the regulations made under the Act, and

(b) clarifies that tax effects that would otherwise result from the application of provisions of the regulations may be ignored in determining the tax consequences if there is an avoidance transaction.

 
International Financial Activity Act

SECTION 7: [International Financial Activity Act, section 20] includes in the definition of "transaction price" an amount payable.

SECTION 8: [International Financial Activity Act, section 51]

• clarifies that an avoidance transaction under the anti-avoidance rules includes a transaction that may reasonably be considered to be a transaction that would result, directly or indirectly, in a misuse or abuse of the regulations made under the Act;
• clarifies that tax effects that would otherwise result from the application of provisions of the regulations may be ignored in determining the tax consequences if there is an avoidance transaction.

SECTION 9: [International Financial Activity Act, section 58] authorizes an official to provide claimant information obtained under the Act for the purposes of administering or enforcing the International Financial Business (Tax Refund) Act, replaced by the International Financial Activity Act.

SECTION 10: [International Financial Activity Act, section 58.1] authorizes information obtained under the International Financial Business (Tax Refund) Act, replaced by the International Financial Activity Act, to be used for the purposes of administering or enforcing the International Financial Activity Act.

 
Property Transfer Tax Act

SECTION 11: [Property Transfer Tax Act section 18] permits a transferee to file a waiver with the administrator in order to extend the period during which the administrator must issue a notice of assessment, and consequentially amends subsections (6), (6.1) and (6.2) to clarify that a waiver filed under the new provisions affects the period during which a notice of assessment must be issued under subsections (5), (6), (6.1) or (6.2).

 
Provincial Revenue Statutes Amendment Act, 2004

SECTION 12: [Provincial Revenue Statutes Amendment Act, 2004, section 70] is consequential to amendments to transitional provisions to the Income Tax Act (Canada) respecting the business limit for the small business tax rate.

 
Taxation (Rural Area) Act

SECTION 13: [Taxation (Rural Area) Act, section 35] permits the collector to serve a demand issued under this section by email or fax in addition to personal service or registered mail.

 
Tobacco Tax Act

SECTION 14: [Tobacco Tax Act, section 58] clarifies that only a dealer who is authorized, and a person who is in the business of transporting goods for the public and is under contract with a dealer for the movement of tobacco, may transport tobacco in bulk quantities.