Explanatory Notes

 
Home Owner Grant Act

SECTION 1: [Home Owner Grant Act, section 13.1] permits a ministry person, as defined, to use or disclose personal information collected under the Act for certain specified purposes, including the administration of the Act, the Land Tax Deferment Act, the Property Transfer Tax Act and the Taxation (Rural Area) Act, and restricts the use and disclosure of low-income grant supplement information and shared information, as defined, in the ways set out.

SECTION 2: [Home Owner Grant Act, section 18] grants the power to make regulations excluding information from the definition of "low-income grant supplement information".

 
Hotel Room Tax Act

SECTION 3: [Hotel Room Tax Act, section 1] adds definitions relevant to tax rulings.

SECTION 4: [Hotel Room Tax Act, sections 1.1 to 1.5] adds new sections that set out provisions respecting

• how an application for a tax ruling is made and withdrawn,
• the rejection of an application for a tax ruling, or the issuance of a tax ruling,
• the binding nature of a tax ruling, including the circumstances in which a tax ruling will not be binding,
• the final and conclusive nature of a tax ruling, and
• the prohibition of legal proceedings in respect of a tax ruling.

SECTION 5: [Hotel Room Tax Act, section 17] adds a power to review a transaction that was the subject of a tax ruling.

SECTION 6: [Hotel Room Tax Act, section 43] expands the regulation-making power in respect of the calculation of interest.

SECTION 7: [Hotel Room Tax Act, section 44] adds regulation-making powers relevant to tax rulings.

 
Income Tax Act

SECTION 8: [Income Tax Act, section 1] is consequential to the amendment to section 4.721 of the Act made by this Bill.

SECTION 9: [Income Tax Act, section 4.62] consistent with provisions respecting the transfer to and deduction by a spouse, common-law partner, parent or grandparent of unused tuition and education tax credits, specifies the amounts that are deductible, rather than specifying the amounts that are not deductible, from an individual's tax payable under the Act for a taxation year in calculating the deduction in respect of an individual's unused tuition and education tax credits and in calculating the unused tuition and education tax credit amounts.

SECTION 10: [Income Tax Act, section 4.62] provides for the deduction of the adoption expense credit in determining the individual's unused tuition and education tax credits and the unused tuition and education tax credit amounts.

SECTION 11: [Income Tax Act, section 4.721]

• amends the definition of "BC flow-through mining expenditure" as a result of the amendments to the definition of "flow-through mining expenditure" in the Income Tax Act (Canada);
• adds a definition of "specified sampling";
• corrects an error.

 
Insurance Premium Tax Act

SECTION 12: [Insurance Premium Tax Act, section 1] limits the definition of taxable insurer to an insurer that has a business authorization under the Financial Institutions Act.

 
Land Tax Deferment Act

SECTION 13: [Land Tax Deferment Act, section 13.1] permits a ministry person, as defined, to use or disclose personal information collected under the Act for certain specified purposes, including the administration of the Act, the Home Owner Grant Act, the Property Transfer Tax Act and the Taxation (Rural Area) Act, and restricts the use and disclosure of shared information, as defined, in the ways set out.

 
Mineral Land Tax Act

SECTION 14: [Mineral Land Tax Act, section 5] empowers the administrator to decline to send a notice if the tax payable is less than the prescribed amount.

SECTION 15: [Mineral Land Tax Act, section 8] provides that an owner is not liable to pay taxes if the administrator has declined to mail an assessment to the owner.

 
Motor Fuel Tax Act

SECTION 16: [Motor Fuel Tax Act, section 1] adds the term "IFTA commercial vehicle" to the definitions section, referring to its prescribed meaning.

SECTION 17: [Motor Fuel Tax Act, section 1] adds definitions relevant to tax rulings.

SECTION 18: [Motor Fuel Tax Act, section 2] changes the reference from "commercial motor vehicle" to "IFTA commercial vehicle", which is the type of commercial vehicle covered by the International Fuel Tax Agreement.

SECTION 19: [Motor Fuel Tax Act, Part 1.1] adds a new Part that sets out provisions respecting

• how an application for a tax ruling is made and withdrawn,
• the rejection of an application for a tax ruling, or the issuance of a tax ruling,
• the binding nature of a tax ruling, including the circumstances in which a tax ruling will not be binding,
• the final and conclusive nature of a tax ruling, and
• the prohibition of legal proceedings in respect of a tax ruling.

SECTION 20: [Motor Fuel Tax Act, section 16] changes the reference from "commercial motor vehicle" to "IFTA commercial vehicle", which is the type of commercial vehicle covered by the International Fuel Tax Agreement.

SECTION 21: [Motor Fuel Tax Act, section 41] adds a power to review a transaction that was the subject of a tax ruling.

SECTION 22: [Motor Fuel Tax Act, section 48] makes language respecting the calculation of interest consistent with other taxation statutes.

SECTION 23: [Motor Fuel Tax Act, section 71] permits the term "IFTA commercial vehicle" to be defined by regulation.

SECTION 24: [Motor Fuel Tax Act, section 71] expands the regulation-making power in respect of the calculation of interest.

SECTION 25: [Motor Fuel Tax Act, section 72] adds regulation-making powers relevant to tax rulings.

 
Property Transfer Tax Act

SECTION 26: [Property Transfer Tax Act, section 1] adds definitions for the purposes of the amendments to section 32, and the addition of sections 32.1 and 32.2, of the Act added by this Bill.

SECTION 27: [Property Transfer Tax Act, section 4] adds a definition for "critical illness or injury insurance".

SECTION 28: [Property Transfer Tax Act, section 10] continues the application of the exemptions under section 5 or 6 for first time home buyers if an insurer, within the first 12 months after the registration date, pays out critical illness or injury insurance proceeds to a mortgagor under a mortgage, or a vendor under an agreement of sale, to reduce or eliminate the transferee's indebtedness.

SECTION 29: [Property Transfer Tax Act, section 32] subject to sections 32.1 and 32.2 of the Act, expands the purposes for which information or records under the Act may be used or disclosed to include use or disclosure for the purposes of the administration of the Home Owner Grant Act and the Land Tax Deferment Act.

SECTION 30: [Property Transfer Tax Act, sections 32.1 and 32.2] imposes tighter restrictions than the restrictions set out in section 32 of the Act on the following:

• the use and disclosure of personal information that is received under section 13.1 (2) or (3) of the Home Owner Grant Act or section 13.1 of the Land Tax Deferment Act;
• the use and disclosure of information that is obtained under a taxation Act other than the Property Transfer Tax Act or the Taxation (Rural Area) Act.

SECTION 31: [Property Transfer Tax Act, section 33] is consequential to amendments to the Home Owner Grant Act made by this Bill.

 
Social Service Tax Act

SECTION 32: [Social Service Tax Act, section 1] adds definitions relevant to tax rulings.

SECTION 33: [Social Service Tax Act, section 1] removes installation charges from the definition of "purchase price" because, unless specifically exempted or excluded under another provision, installation is taxed as a service.

SECTION 34: [Social Service Tax Act, section 4.1] clarifies that the commissioner may determine the fair market value of tangible personal property and a lease of tangible personal property, and that the purchase price or lease price is as determined by the commissioner.

SECTION 35: [Social Service Tax Act, section 4.2] sets out how tax is to be calculated if a vendor or lessor offers a reduction in a purchase price or lease price.

SECTION 36: [Social Service Tax Act, Part 1.1] adds a new Part that sets out provisions respecting

• how an application for a tax ruling is made and withdrawn,
• the rejection of an application for a tax ruling, or the issuance of a tax ruling,
• the binding nature of a tax ruling, including the circumstances in which a tax ruling will not be binding,
• the final and conclusive nature of a tax ruling, and
• the prohibition of legal proceedings in respect of a tax ruling.

SECTION 37: [Social Service Tax Act, section 6] removes an unnecessary reference to section 11 (3) of the Act.

SECTION 38: [Social Service Tax Act, section 17.1] replaces specific references with a general reference.

SECTION 39: [Social Service Tax Act, sections 43, 58 and 63] repeals provisions made redundant by changes made by this Bill to section 4.1 of the Act.

SECTION 40: [Social Service Tax Act, section 78] provides that a person who grants a right to use tangible personal property under an agreement that meets specified criteria is not exempt from tax.

SECTION 41: [Social Service Tax Act, section 92] repeals subsections that are moved to section 92.1 of the Act by this Bill.

SECTION 42: [Social Service Tax Act, section 92.1]

• expands the basis on which the commissioner can refuse to grant a registration certificate to include both non-compliance with or contraventions of other taxation statutes, and proposals to engage in unlawful activity;
• expands the basis on which the commissioner can suspend or cancel a registration certificate to include non-compliance with or contraventions of other taxation statutes.

SECTION 43: [Social Service Tax Act, section 113] adds a power to review a transaction that was the subject of a tax ruling.

SECTION 44: [Social Service Tax Act, section 118]

(a) is consequential to the repeal of sections 43, 58 and 63 of the Act by this Bill;

(b) changes a cross reference in the appeal provisions, consequential to the addition of section 92.1 of the Act by this Bill.

SECTION 45: [Social Service Tax Act, section 137.1] adds regulation-making powers relevant to tax rulings.

SECTION 46: [Social Service Tax Act, section 138] expands the regulation-making power in respect of the calculation of interest.

 
Taxation (Rural Area) Act

SECTION 47: [Taxation (Rural Area) Act, section 1] adds definitions for the purposes of the amendments to section 3, and the addition of sections 3.1 and 3.2, of the Act added by this Bill.

SECTION 48: [Taxation (Rural Area) Act, section 3] subject to sections 3.1 and 3.2 of the Act, expands the purposes for which information or records under the Act may be used or disclosed to include use or disclosure for the purposes of the administration of the Home Owner Grant Act and the Land Tax Deferment Act.

SECTION 49: [Taxation (Rural Area) Act, sections 3.1 and 3.2] imposes tighter restrictions than the restrictions set out in section 3 of the Act on the following:

• the use and disclosure of personal information that is received under section 13.1 (2) or (3) of the Home Owner Grant Act or section 13.1 of the Land Tax Deferment Act;
• the use and disclosure of information that is obtained under a taxation Act other than the Taxation (Rural Area) Act or the Property Transfer Tax Act.

SECTION 50: [Taxation (Rural Area) Act, section 11] requires the Surveyor of Taxes to issue a copy taxation notice, and provides for an extension of the date on which taxes levied are due and payable, if the British Columbia Assessment Authority reports to the Surveyor of Taxes that there has been a change in the address of a taxpayer or a change in the ownership of a parcel of land.

SECTION 51: [Taxation (Rural Area) Act, section 21] empowers the Surveyor of Taxes to decline to send a notice if the tax payable is less than the prescribed amount.

SECTION 52: [Taxation (Rural Area) Act, section 29] provides that a person is not liable to pay taxes if the Surveyor of Taxes has declined to send the person a notice.

SECTION 53: [Taxation (Rural Area) Act, section 57] authorizes the Lieutenant Governor in Council to prescribe the amount for the purposes of section 21 (9) of the Act.

 
Tobacco Tax Act

SECTION 54: [Tobacco Tax Act, section 1]

• adds definitions of "administrative penalty" and "designated officer", and clarifies that a reference to "penalty" alone in the Act does not include an administrative penalty, except in the specified sections;
• adds definitions of "proposed transaction" and "tax ruling", which are relevant to tax rulings.

SECTION 55: [Tobacco Tax Act, sections 1.1 to 1.5] adds new sections that set out provisions respecting

• how an application for a tax ruling is made and withdrawn,
• the rejection of an application for a tax ruling, or the issuance of a tax ruling,
• the binding nature of a tax ruling, including the circumstances in which a tax ruling will not be binding,
• the final and conclusive nature of a tax ruling, and
• the prohibition of legal proceedings in respect of a tax ruling.

SECTION 56: [Tobacco Tax Act, section 21] adds a power to review a transaction that was the subject of a tax ruling.

SECTION 57: [Tobacco Tax Act, section 23] permits an appeal to the minister from a decision of the director on a review under section 35.1of the Act, as added by this Bill.

SECTION 58: [Tobacco Tax Act, section 25] expands the application of this section to include administrative penalties imposed under section 35.1 of the Act, as added by this Bill.

SECTION 59: [Tobacco Tax Act, section 25.1] expands the application of this section so that, subject to a review by the director under section 35.1 of the Act, an administrative penalty is valid and binding, despite an error, defect or omission in the administrative penalty or the process by which the administrative penalty was imposed.

SECTION 60: [Tobacco Tax Act, section 30] expands the application of section 30, so that any amount due, including administrative penalties, may be recovered as a debt due to the government.

SECTION 61: [Tobacco Tax Act, section 31] expands the application of section 31, so that the power to recover a debt includes the recovery of administrative penalties.

SECTION 62: [Tobacco Tax Act, section 32] broadens the definition of "taxpayer" to include a person who is liable to pay an administrative penalty.

SECTION 63: [Tobacco Tax Act, section 35] clarifies that the director may impose a penalty under section 35 (1) and assess interest on unpaid taxes under section 32 (2), in addition to the imposition of an administrative penalty under section 35.1.

SECTION 64: [Tobacco Tax Act, sections 35.1 to 35.5] establishes an administrative penalty scheme, which includes the following elements:

• authorizes the designated officer, as defined, to impose a monetary penalty of a prescribed amount on a person for prescribed contraventions of the Act or the regulations, or of a condition of a dealer's permit or retail authorization, by serving a person with a determination;
• enables a person who receives a determination to request a review by the director, and requires the director to provide the person with an opportunity to be heard;
• provides that administrative penalties are alternatives to offence proceedings, so a person cannot be prosecuted for the same contravention that is the subject of an administrative penalty, and an administrative penalty may not be imposed on a person who has been prosecuted for an offence related to the same circumstances;
• requires a person to pay an administrative penalty
  • within 30 days of the date the person is served with the determination by a designated officer, unless the person requests a review of the determination, or
  • within 15 days of the decision of the director, if a review of the determination was requested;
• grants the director the power to appoint designated officers for the purposes of section 35.1 of the Act;
• provides that employees, officers, directors or agents of corporations who authorize, permit or acquiesce in a contravention by the corporation of a prescribed provision of the Act or the regulations, or of a condition of a retail authorization or dealer's permit, are liable for the contravention whether or not a penalty has also been imposed on the corporation;

SECTION 65: [Tobacco Tax Act, section 44] permits the enactment of regulations respecting the new administrative penalty scheme, including

• establishing contraventions that are subject to administrative penalties;
• setting out the practices and procedures to be followed by the director in conducting hearings respecting administrative penalties;
• prescribing schedules of penalties that may be imposed.

SECTION 66: [Tobacco Tax Act, section 44.1] adds regulation-making powers relevant to tax rulings.

SECTION 67: [Transitional -- effect of reduction in purchase or lease price on tax under Social Service Tax Act]

• clarifies that, if a refund is claimed in respect of taxes paid and remitted before tax on a price reduction was required to be calculated in accordance with section 4.2 of the Social Service Tax Act, as added by this Bill, any amount a purchaser or lessee paid as taxes that did not have to be paid as taxes is a refund owing to the purchaser or lessee;
• provides that the method of calculating taxes required under section 4.2 of the Act does not apply to a vendor or lessor who has already collected, but not yet remitted, taxes as of the date section 4.2 comes into force.

SECTION 68: [Transitional -- registration certificates under Social Service Tax Act] provides that the grounds for refusing, cancelling or suspending a registration certificate, as set out in section 92.1 (1) of the Act, as added by this Bill, apply to applications made, or certificates granted, on or after January 1, 2006.

BILL 19 – 2007
SMALL BUSINESS AND REVENUE STATUTES AMENDMENT ACT, 2007

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

 
Home Owner Grant Act

1 The Home Owner Grant Act, R.S.B.C. 1996, c. 194, is amended by adding the following section:

Access to and disclosure of records

13.1 (1) In this section:

"low-income grant supplement information" means information that is collected for the purpose of determining if the requirements for a category of low-income individuals under section 18.1 are met, but does not include information or categories of information prescribed by the Lieutenant Governor in Council;

"ministry" means the ministry of the minister responsible for the administration of this Act;

"ministry person" means a person who is employed in, or retained under a contract to perform services for, the ministry;

"personal information" means personal information as defined in Schedule 1 of the Freedom of Information and Protection of Privacy Act;

"shared information" means the following information:

personal information that is collected as a result of a disclosure under section 13.1 of the Land Tax Deferment Act;

(b) information or a record that is collected as a result of a disclosure under section 32 of the Property Transfer Tax Act or section 3 of the Taxation (Rural Area) Act.

(2) Subject to subsections (3) to (5), a ministry person may use or disclose personal information collected under this Act

(a) for the purposes of administering or enforcing this Act,

(b) for the purposes of administering or enforcing any of the following Acts:

(i) the Land Tax Deferment Act;

(ii) the Property Transfer Tax Act;

(iii) the Taxation (Rural Area) Act, or

in court proceedings related to this Act or an Act referred to in paragraph (b) of this subsection.

(3) Subject to subsection (5), a ministry person may use or disclose shared information only

(a) for the purposes of administering or enforcing this Act,

(b) for the purposes of administering or enforcing any of the following Acts:

(i) the Land Tax Deferment Act;

(ii) the Property Transfer Tax Act;

(iii) the Taxation (Rural Area) Act, or

(c) in court proceedings related to this Act or an Act referred to in paragraph (b) of this subsection.

(4) Subject to subsection (5), a ministry person may use or disclose low-income grant supplement information only

(a) for the purposes of administering and enforcing

(i) the program established under section 18.1, and

(ii) sections 2 (8) to (10), 7 (3) to (5) and 18.1, or

(b) in court proceedings related to

(i) the program established under section 18.1, and

(ii) sections 2 (8) to (10), 7 (3) to (5) and 18.1.

(5) Subsection (3) (a) or (b) or (4) (a) does not permit a disclosure to an employee of, or a person who is retained under a contract to perform services for, a municipality or a government agent office.

2 Section 18 (2) is amended by adding the following paragraph:

(g) establish information or categories of information that are not included in the meaning of "low-income grant supplement information" as defined in section 13.1.

 
Hotel Room Tax Act

3 Section 1 of the Hotel Room Tax Act, R.S.B.C. 1996, c. 207, is amended by adding the following definitions:

"proposed transaction" means a transaction or type of transaction that

(a) is proposed to be undertaken by an identified person, and

(b) is eligible for a tax ruling under the regulations;

"tax ruling" means a written statement of the director, issued under section 1.2, respecting the application of the Act to a proposed transaction; .

4 The following sections are added:

Application for tax ruling

1.1 (1) Subject to the regulations, a person may apply for a tax ruling by submitting to the director, in the form or in the manner required by the director,

(a) a description of all facts relevant to the proposed transaction to which the tax ruling is to apply, and

(b) all prescribed information.

(2) If a fee is prescribed and all or part of the fee must be paid in advance of the tax ruling, an application under subsection (1) must be accompanied by the amount of the fee that must be paid in advance.

Tax ruling

1.2 (1) On receiving an application for a tax ruling, the director must consider the application and may

(a) reject, or temporarily reject, the application on any basis permitted by the regulations, or

(b) issue a tax ruling to the applicant.

(2) Subject to the regulations, the director may

(a) set out terms, conditions or any other qualification in a tax ruling, and

(b) publish a tax ruling.

Binding nature of tax rulings

1.3 (1) Subject to subsections (2) and (3), a tax ruling is binding on the director in respect of

(a) the proposed transaction that is the subject of the tax ruling, and

(b) the person identified in the application for the tax ruling as the person intending to undertake the proposed transaction.

(2) Subject to the regulations, a tax ruling is not binding on the director

(a) if there is a material omission or misrepresentation in the information provided in the application for the tax ruling,

(b) if a term, condition or other qualification set out in the tax ruling is not met and no variation of the term, condition or qualification is permitted by the director,

(c) if the tax ruling is based on an interpretation of law, and that interpretation is subsequently affected by a decision of a court,

(d) if the tax ruling is based on an enactment that is subsequently amended or repealed, or

(e) in any of the circumstances set out in the regulations.

(3) If a tax ruling is not binding on the director for a reason set out in subsection (2) or the regulations, or if the director subsequently determines the tax ruling to have been in error,

(a) the director may, despite subsection (2), issue or publish a notice that a tax ruling or a class of tax rulings were binding on the date issued but ceased, or will cease, to be binding on a specified date, and

(b) if the director issues or publishes a notice under paragraph (a), a tax ruling is binding in respect of any transaction that clearly begins before the specified date.

Exclusive jurisdiction of director

1.4 (1) The director has exclusive jurisdiction to inquire into and determine all those matters and questions of fact, law and discretion arising or required to be determined in relation to a tax ruling.

(2) A decision of the director on a matter in respect of which the director has exclusive jurisdiction is final and conclusive and is not open to question or review in any court.

No legal proceeding in relation to tax rulings

1.5 No legal proceeding lies or may be commenced or maintained against the government, the director, a former director, or a person acting on behalf of the director or who acted on behalf of a director or former director, for any damages suffered by a person as a result of

(a) the length of time taken to reject an application or issue a ruling, or

(b) relying on a tax ruling that, because of a circumstance described in section 1.3 (2) or (3), is not binding or ceases to be binding.

5 Section 17 (1) is amended by striking out "or" at the end of paragraph (a) (ii), by adding ", or" at the end of paragraph (b) and by adding the following paragraph:

(c) to review a transaction that was the subject of a tax ruling to determine whether

(i) the application for the tax ruling was accurate and complete in all material respects, and

(ii) the transaction was conducted substantially as set out in the application and according to any terms, conditions or other qualifications set out in the tax ruling.

6 Section 43 is amended by adding the following subsection:

(6) For the purposes of a regulation under subsection (2) (k), interest may be calculated in a manner that applies, or has the effect of applying, different rates of interest to all or part of an assessment if a person is entitled to a refund under this Act.

7 The following section is added:

Regulations in relation to tax rulings

44 (1) The Lieutenant Governor in Council may make regulations respecting tax rulings as follows:

(a) respecting transactions that are eligible for tax rulings;

(b) respecting the information that must be included in an application for a tax ruling, including

(i) information respecting the purpose of the proposed transaction,

(ii) information respecting any relevant or related transaction that begins before the application for a tax ruling is made, or is anticipated to begin before the tax ruling is issued,

(iii) information respecting any relevant or related transaction that may be undertaken after the proposed transaction is completed,

(iv) information respecting all other applications for tax rulings, made by or known to the applicant and made in respect of the proposed transaction, including applications made in other jurisdictions,

(v) information respecting any legal or administrative proceedings under this or any enactment, including an enactment of another jurisdiction, that are relevant to the proposed transaction, and

(vi) a summary of any tax ruling known to the applicant that would support or not support the applicant's position respecting the application of the Act and the regulations made under it to the proposed transaction, and a copy of the tax ruling, including a tax ruling from another jurisdiction;

(c) respecting fees for tax rulings, including

(i) requiring all or part of a fee to be paid in advance, and

(ii) setting fees by an amount, a rate or any other method;

(d) respecting refunds of all or part of a fee, including interest on refunds;

(e) respecting withdrawals of applications for tax rulings;

(f) respecting the bases on which the director may reject, or temporarily reject, an application for a tax ruling;

(g) respecting terms, conditions or other qualifications set out in a tax ruling, including variations of terms, conditions or other qualifications;

(h) respecting publication of tax rulings;

(i) respecting procedures to be followed before a tax ruling is considered not binding;

(j) prescribing additional circumstances in which a tax ruling is not binding.

(2) A regulation made under subsection (1) (d) may authorize the director to make a refund from the consolidated revenue fund.

 
Income Tax Act

8 Section 1 (8) (b.1) of the Income Tax Act, R.S.B.C. 1996, c. 215, is amended by striking out "paragraph (a)" and substituting "paragraph (b)".

9 Section 4.62 is amended

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

(b) the amount that would be the individual's tax payable under this Act for the year if the only amounts deductible were the amounts under the following sections:

(i) section 4.3 [personal credits];

(ii) section 4.31 [age credit];

(iii) section 4.32 [pension credit];

(iv) section 4.51 [credit for mental or physical impairment];

(v) section 4.64 [credit for EI premium and CPP contribution]. , and

(b) in subsection (2) by repealing the description of "C" and substituting the following:

C is the smaller of the value of "B" and the amount that would be the individual's tax payable under this Act for the year if the only amounts deductible were the amounts under the following sections:

(a) section 4.3 [personal credits];

(b) section 4.31 [age credit];

(c) section 4.32 [pension credit];

(d) section 4.51 [credit for mental or physical impairment];

(e) section 4.64 [credit for EI premium and CPP contribution], .

10 Section 4.62 is amended

(a) in subsection (1) (b) by adding the following subparagraph:

(iii.1) section 4.33 [adoption expense credit]; , and

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

(c.1) section 4.33 [adoption expense credit]; .

11 Section 4.721 is amended

(a) in subsection (1) by repealing the definition of "BC flow-through mining expenditure" and substituting the following:

"BC flow-through mining expenditure", in relation to an individual for a taxation year, means an expense that meets the following criteria:

(a) the expense is deemed by one of the following sections of the federal Act to be incurred by the individual in the year:

(i) section 66 (12.61) of the federal Act;

(ii) section 66 (18) of the federal Act as a consequence of the application of section 66 (12.61) of the federal Act to a partnership, referred to in paragraph (f) of this definition, of which the individual is a member;

(b) the expense is an expense described in paragraph (f) of the definition of "Canadian exploration expense" in section 66.1 (6) of the federal Act;

(c) the expense is not an expense in respect of the following:

(i) trenching, if one of the purposes of the trenching is to carry out preliminary sampling, other than specified sampling;

(ii) digging test pits, other than digging test pits for the purpose of carrying out specified sampling;

(iii) preliminary sampling, other than specified sampling;

(d) the expense is an expense incurred by a corporation after July 30, 2001 and before 2009 in conducting mining exploration activity from or above the surface of the earth for the purpose of determining the existence, location, extent or quality of a mineral resource described in paragraph (a) or (d) of the definition of "mineral resource" in section 248 (1) of the federal Act;

(e) the expense is incurred in respect of mining exploration activity all or substantially all of which is conducted in British Columbia for the purpose of determining the existence, location, extent or quality of a mineral resource in British Columbia;

(f) the expense is an expense in respect of which an amount is renounced in accordance with section 66 (12.6) of the federal Act by the corporation to the individual, or to a partnership of which the individual is a member, under an agreement described in that section and made after July 30, 2001;

(g) the expense is not an expense that was renounced under section 66 (12.6) of the federal Act to the corporation, or to a partnership of which the corporation is a member, unless that renunciation was under an agreement described in that section and made after July 30, 2001; ,

(b) in subsection (1) by adding the following definition:

"specified sampling" has the same meaning as in section 127 (9) of the federal Act; ,

(c) by adding the following subsection:

(1.1) For the purposes of paragraph (d) of the definition of "BC flow-through mining expenditure" and for greater certainty, an expense incurred by a corporation before 2009 includes an expense that is deemed by section 66 (12.66) of the federal Act to be incurred before 2009. , and

(d) in subsection (5) by striking out "BC mining flow-through expenditure" and substituting "BC flow-through mining expenditure".

 
Insurance Premium Tax Act

12 Section 1 (1) of the Insurance Premium Tax Act, R.S.B.C. 1996, c. 232, is amended in paragraph (a) of the definition of "taxable insurer" by striking out "or is required to have".

 
Land Tax Deferment Act

13 The Land Tax Deferment Act, R.S.B.C. 1996, c. 249, is amended by adding the following section:

Access to and disclosure of records

13.1 (1) In this section:

"ministry" means the ministry of the minister responsible for the administration of this Act;

"ministry person" means a person who is employed in, or retained under a contract to perform services for, the ministry;

"personal information" means personal information as defined in Schedule 1 of the Freedom of Information and Protection of Privacy Act;

"shared information" means the following information:

(a) personal information that is collected as a result of a disclosure under section 13.1 (2) or (3) of the Home Owner Grant Act;

(b) information or a record that is collected as a result of a disclosure under section 32 of the Property Transfer Tax Act or section 3 of the Taxation (Rural Area) Act.

(2) Subject to subsection (3), a ministry person may use or disclose personal information collected under this Act

(a) for the purposes of administering or enforcing this Act,

(b) for the purposes of administering or enforcing any of the following Acts:

(i) the Home Owner Grant Act;

(ii) the Property Transfer Tax Act;

(iii) the Taxation (Rural Area) Act, or

(c) in court proceedings related to this Act or an Act referred to in paragraph (b) of this subsection.

(3) Subject to subsection (4), a ministry person may use or disclose shared information only

(a) for the purposes of administering or enforcing this Act,

(b) for the purposes of administering or enforcing any of the following Acts:

(i) the Home Owner Grant Act;

(ii) the Property Transfer Tax Act;

(iii) the Taxation (Rural Area) Act, or

(c) in court proceedings related to this Act or an Act referred to in paragraph (b) of this subsection.

(4) Subsection (3) (a) or (b) does not permit a disclosure to an employee of, or a person who is retained under a contract to perform services for, a municipality or a government agent office.

 
Mineral Land Tax Act

14 Section 5 of the Mineral Land Tax Act, R.S.B.C. 1996, c. 290, is amended by adding the following subsection:

(4.1) Despite subsection (4), the administrator may decline to send a notice of mineral land tax assessment to an owner if the mineral land tax levied in the year in respect of the parcel is less than the prescribed amount.

15 Section 8 is amended by adding the following subsection:

(4) Despite sections 3 and 4, an owner is not liable to pay taxes imposed for a year if the administrator has declined under section 5 (4.1) to send a notice of mineral land tax assessment to the owner in respect of the taxes payable for the year.

 
Motor Fuel Tax Act

16 Section 1 of the Motor Fuel Tax Act, R.S.B.C. 1996, c. 317, is amended

(a) by adding the following definition:

"IFTA commercial vehicle" has the prescribed meaning; , and

(b) in the definition of "motive fuel user permit" by striking out "a commercial motor vehicle," and substituting "an IFTA commercial vehicle,".

17 Section 1 is amended by adding the following definitions:

"proposed transaction" means a transaction or type of transaction that

(a) is proposed to be undertaken by an identified person, and

(b) is eligible for a tax ruling under the regulations;

"tax ruling" means a written statement of the director, issued under section 3.3, respecting the application of the Act to a proposed transaction; .

18 Section 2 (1) (c) is amended by striking out "a commercial motor vehicle" and substituting "an IFTA commercial vehicle".

19 The following Part is added:

Part 1.1 -- Tax Rulings

Application for tax ruling

3.2 (1) Subject to the regulations, a person may apply for a tax ruling by submitting to the director, in the form or in the manner required by the director,

(a) a description of all facts relevant to the proposed transaction to which the tax ruling is to apply, and

(b) all prescribed information.

(2) If a fee is prescribed and all or part of the fee must be paid in advance of the tax ruling, an application under subsection (1) must be accompanied by the amount of the fee that must be paid in advance.

Tax ruling

3.3 (1) On receiving an application for a tax ruling, the director must consider the application and may

(a) reject, or temporarily reject, the application on any basis permitted by the regulations, or

(b) issue a tax ruling to the applicant.

(2) Subject to the regulations, the director may

(a) set out terms, conditions or any other qualification in a tax ruling, and

(b) publish a tax ruling.

Binding nature of tax rulings

3.4 (1) Subject to subsections (2) and (3), a tax ruling is binding on the director in respect of

(a) the proposed transaction that is the subject of the tax ruling, and

(b) the person identified in the application for the tax ruling as the person intending to undertake the proposed transaction.

(2) Subject to the regulations, a tax ruling is not binding on the director

(a) if there is a material omission or misrepresentation in the information provided in the application for the tax ruling,

(b) if a term, condition or other qualification set out in the tax ruling is not met and no variation of the term, condition or qualification is permitted by the director,

(c) if the tax ruling is based on an interpretation of law, and that interpretation is subsequently affected by a decision of a court,

(d) if the tax ruling is based on an enactment that is subsequently amended or repealed, or

(e) in any of the circumstances set out in the regulations.

(3) If a tax ruling is not binding on the director for a reason set out in subsection (2) or the regulations, or if the director subsequently determines the tax ruling to have been in error,

(a) the director may, despite subsection (2), issue or publish a notice that a tax ruling or a class of tax rulings were binding on the date issued but ceased, or will cease, to be binding on a specified date, and

(b) if the director issues or publishes a notice under paragraph (a), a tax ruling is binding in respect of any transaction that clearly begins before the specified date.

Exclusive jurisdiction of director

3.5 (1) The director has exclusive jurisdiction to inquire into and determine all those matters and questions of fact, law and discretion arising or required to be determined in relation to a tax ruling.

(2) A decision of the director on a matter in respect of which the director has exclusive jurisdiction is final and conclusive and is not open to question or review in any court.

No legal proceeding in relation to tax rulings

3.6 No legal proceeding lies or may be commenced or maintained against the government, the director, a former director, or a person acting on behalf of the director or who acted on behalf of a director or former director, for any damages suffered by a person as a result of

(a) the length of time taken to reject an application or issue a ruling, or

(b) relying on a tax ruling that, because of a circumstance described in section 3.4 (2) or (3), is not binding or ceases to be binding.

20 Section 16 (1) and (2) is amended

(a) by striking out "a commercial motor vehicle" and substituting "an IFTA commercial vehicle", and

(b) by striking out "the commercial motor vehicle" and substituting "the IFTA commercial vehicle".

21 Section 41 (1) is amended by adding the following paragraph:

(b.1) review a transaction that was the subject of a tax ruling to determine whether

(i) the application for the tax ruling was accurate and complete in all material respects, and

(ii) the transaction was conducted substantially as set out in the application and according to any terms, conditions or other qualifications set out in the tax ruling; .

22 Section 48 (1) is amended by striking out "at the prescribed rate and compounded as prescribed," and substituting "calculated at the rate and in the manner prescribed,".

23 Section 71 (2) is amended by adding the following paragraph:

(z) defining "IFTA commercial vehicle".

24 Section 71 is amended by adding the following subsection:

(4) For the purposes of a regulation under subsection (2) (y), interest may be calculated in a manner that applies, or has the effect of applying, different rates of interest to all or part of an assessment if a person is entitled to a refund under this Act.

25 The following section is added:

Regulations in relation to tax rulings

72 (1) The Lieutenant Governor in Council may make regulations respecting tax rulings as follows:

(a) respecting transactions that are eligible for tax rulings;

(b) respecting the information that must be included in an application for a tax ruling, including

(i) information respecting the purpose of the proposed transaction,

(ii) information respecting any relevant or related transaction that begins before the application for a tax ruling is made, or is anticipated to begin before the tax ruling is issued,

(iii) information respecting any relevant or related transaction that may be undertaken after the proposed transaction is completed,

(iv) information respecting all other applications for tax rulings, made by or known to the applicant and made in respect of the proposed transaction, including applications made in other jurisdictions,

(v) information respecting any legal or administrative proceedings under this or any enactment, including an enactment of another jurisdiction, that are relevant to the proposed transaction, and

(vi) a summary of any tax ruling known to the applicant that would support or not support the applicant's position respecting the application of the Act and the regulations made under it to the proposed transaction, and a copy of the tax ruling, including a tax ruling from another jurisdiction;

(c) respecting fees for tax rulings, including

(i) requiring all or part of a fee to be paid in advance, and

(ii) setting fees by an amount, a rate or any other method;

(d) respecting refunds of all or part of a fee, including interest on refunds;

(e) respecting withdrawals of applications for tax rulings;

(f) respecting the bases on which the director may reject, or temporarily reject, an application for a tax ruling;

(g) respecting terms, conditions or other qualifications set out in a tax ruling, including variations of terms, conditions or other qualifications;

(h) respecting publication of tax rulings;

(i) respecting procedures to be followed before a tax ruling is considered not binding;

(j) prescribing additional circumstances in which a tax ruling is not binding.

(2) A regulation made under subsection (1) (d) may authorize the director to make a refund from the consolidated revenue fund.

 
Property Transfer Tax Act

26 Section 1 (1) of the Property Transfer Tax Act, R.S.B.C. 1996, c. 378, is amended by adding the following definitions:

"ministry" means the ministry of the minister responsible for the administration of this Act;

"ministry person" means a person who is employed in, or retained under a contract to perform services for, the ministry;

"personal information" means personal information as defined in Schedule 1 of the Freedom of Information and Protection of Privacy Act; .

27 Section 4 (1) is amended

(a) by striking out "sections 5 to 12" and substituting "sections 5 to 12:", and

(b) by adding the following definition:

"critical illness or injury insurance" means insurance whereby the insurer undertakes to pay insurance money in the event the insured is diagnosed with a critical illness or sustains a critical injury; .

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

(a.1) the transferee does not comply with section 8 (1) (c) only because, within the first 12 months after the registration date, insurance proceeds are, under the terms of a contract of critical illness or injury insurance, payable and paid to a lender under an eligible security, or .

29 Section 32 is amended

(a) by striking out "A person who obtains information or records under this Act must not disclose the information or records to another person except as follows:" and substituting "Subject to sections 32.1 and 32.2, a ministry person who collects information or a record under this Act must not use the information or record or disclose the information or record to another person except as follows:", and

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

(a) for the purposes of administering or enforcing this Act, another taxation Act, the Home Owner Grant Act or the Land Tax Deferment Act;

(b) in court proceedings related to this Act or an Act referred to in paragraph (a); .

30 The following sections are added:

Information obtained under certain Acts

32.1 (1) Subject to subsection (2), a ministry person who collects personal information as a result of a disclosure under section 13.1 (2) or (3) of the Home Owner Grant Act or section 13.1 of the Land Tax Deferment Act must not use the personal information or disclose the personal information to another person except as follows:

(a) for the purposes of administering or enforcing this Act;

(b) for the purposes of administering or enforcing any of the following Acts:

(i) the Home Owner Grant Act;

(ii) the Land Tax Deferment Act;

(iii) the Taxation (Rural Area) Act;

(c) in court proceedings related to this Act or an Act referred to in paragraph (b) of this subsection.

(2) Subsection (1) (a) or (b) does not permit a disclosure to an employee of, or a person who is retained under a contract to perform services for, a municipality or a government agent office.

Information obtained under a taxation Act

32.2 If a ministry person collects information or a record under this Act as a result of a disclosure under another taxation Act, other than the Taxation (Rural Area) Act, the ministry person must not use the information or record or disclose the information or record to another person for the purposes of administering or enforcing the Home Owner Grant Act or the Land Tax Deferment Act.

31 Section 33 (2) (b) is repealed.

 
Social Service Tax Act

32 Section 1 of the Social Service Tax Act, R.S.B.C. 1996, c. 431, is amended by adding the following definitions:

"proposed transaction" means a transaction or type of transaction that

(a) is proposed to be undertaken by an identified person, and

(b) is eligible for a tax ruling under the regulations;

"tax ruling" means a written statement of the commissioner, issued under section 4.4, respecting the application of the Act to a proposed transaction; .

33 Section 1 is amended in paragraph (a) (i) (A) of the definition of "purchase price" by striking out "and installation".

34 Section 4.1 is repealed and the following substituted:

Valuation by commissioner

4.1 (1) For the purpose of taxation under this Act,

(a) the commissioner may determine the fair market value of tangible personal property

(i) that passes at a sale,

(ii) that is brought or sent into British Columbia,

(iii) that is delivered in British Columbia, or

(iv) for which there has been a change of use as described in section 9, and

(b) if the commissioner makes a determination under paragraph (a), the purchase price of the tangible personal property is as determined by the commissioner under that paragraph.

(2) For the purpose of taxation under this Act,

(a) the commissioner may determine the fair market value of a lease of tangible personal property, and

(b) if the commissioner makes a determination under paragraph (a), the lease price of the tangible personal property is as determined by the commissioner under that paragraph.

35 The following section is added:

Calculation of tax if price reduced

4.2 If

(a) a vendor or lessor offers to a purchaser or lessee a reduction in a purchase price or lease price, and

(b) the conditions of the reduction, if any, have been met by the purchaser or lessee,

the vendor or lessor must calculate tax by first deducting the full amount of the reduction from the purchase price or lease price and then applying the tax rate to the reduced purchase price or lease price.

36 The following Part is added:

Part 1.1 -- Tax Rulings

Application for tax ruling

4.3 (1) Subject to the regulations, a person may apply for a tax ruling by submitting to the commissioner, in the form or in the manner required by the commissioner,

(a) a description of all facts relevant to the proposed transaction to which the tax ruling is to apply, and

(b) all prescribed information.

(2) If a fee is prescribed and all or part of the fee must be paid in advance of the tax ruling, an application under subsection (1) must be accompanied by the amount of that fee that must be paid in advance.

Tax ruling

4.4 (1) On receiving an application for a tax ruling, the commissioner must consider the application and may

(a) reject, or temporarily reject, the application on any basis permitted by the regulations, or

(b) issue a tax ruling to the applicant.

(2) Subject to the regulations, the commissioner may

(a) set out terms, conditions or any other qualification in a tax ruling, and

(b) publish a tax ruling.

Binding nature of tax rulings

4.5 (1) Subject to subsections (2) and (3), a tax ruling is binding on the commissioner in respect of

(a) the proposed transaction that is the subject of the tax ruling, and

(b) the person identified in the application for the tax ruling as the person intending to undertake the proposed transaction.

(2) Subject to the regulations, a tax ruling is not binding on the commissioner

(a) if there is a material omission or misrepresentation in the information provided in the application for the tax ruling,

(b) if a term, condition or other qualification set out in the tax ruling is not met and no variation of the term, condition or qualification is permitted by the commissioner,

(c) if the tax ruling is based on an interpretation of law, and that interpretation is subsequently affected by a decision of a court,

(d) if the tax ruling is based on an enactment that is subsequently amended or repealed, or

(e) in any of the circumstances set out in the regulations.

(3) If a tax ruling is not binding on the commissioner for a reason set out in subsection (2) or the regulations, or if the commissioner subsequently determines the tax ruling to have been in error,

(a) the commissioner may, despite subsection (2), issue or publish a notice that a tax ruling or a class of tax rulings were binding on the date issued but ceased, or will cease, to be binding on a specified date, and

(b) if the commissioner issues or publishes a notice under paragraph (a), a tax ruling is binding in respect of any transaction that clearly begins before the specified date.

Exclusive jurisdiction of commissioner

4.6 (1) The commissioner has exclusive jurisdiction to inquire into and determine all those matters and questions of fact, law and discretion arising or required to be determined in relation to a tax ruling.

(2) A decision of the commissioner on a matter in respect of which the commissioner has exclusive jurisdiction is final and conclusive and is not open to question or review in any court.

No legal proceeding in relation to tax rulings

4.7 No legal proceeding lies or may be commenced or maintained against the government, the commissioner, a former commissioner, or a person acting on behalf of the commissioner or who acted on behalf of a commissioner or former commissioner, for any damages suffered by a person as a result of

(a) the length of time taken to reject an application or issue a ruling, or

(b) relying on a tax ruling that, because of a circumstance described in section 4.5 (2) or (3), is not binding or ceases to be binding.

37 Section 6 (5) is amended by striking out "sections 5 (1) and 11 (3)" and substituting "section 5 (1)".

38 Section 17.1 is amended by striking out "under sections 5 (1), 6 (5) and 11 (3)," and substituting "under this Act,".

39 Sections 43, 58 and 63 are repealed.

40 Section 78 is amended by adding the following subsection:

(1.1) The exemption under subsection (1) does not apply to a person if the person is granting a right to use the tangible personal property to other persons under an agreement in which

(a) the right to use the tangible personal property is not the main purpose of the agreement, and

(b) a separate price is not specified for the right to use the tangible personal property.

41 Section 92 (5) and (6) is repealed.

42 The following section is added:

Refusal to grant certificates or suspension
or cancellation of certificates

92.1 (1) The commissioner may refuse to grant a registration certificate to a person who

(a) does not hold the federal, provincial and municipal registrations, licences and permits that the person is required by the regulations to hold in order to be eligible for a certificate,

(b) has failed to post any security required under section 92 (3),

(c) has refused or neglected to comply with a provision of, or has committed an offence against,

(i) this Act or any other Act that has, as its purpose, the imposition of a tax, or

(ii) the regulations made under this Act or an Act described in subparagraph (i), or

(d) based on the facts set out in the application for the registration certificate, the commissioner reasonably believes will be committing a criminal or regulatory offence in selling or leasing tangible personal property.

(2) The commissioner may suspend or cancel a registration certificate granted to a person under section 92 if

(a) any of the circumstances described in subsection (1) (a) or (c) exist in respect of the person, or

(b) the person has failed to post any security required under section 112.

43 Section 113 (2) is amended by striking out "or" at the end of paragraph (b) and by adding the following paragraph:

(b.1) review a transaction that was the subject of a tax ruling to determine whether

(i) the application for the tax ruling was accurate and complete in all material respects, and

(ii) the transaction was conducted substantially as set out in the application and according to any terms, conditions or other qualifications set out in the tax ruling, or .

44 Section 118 (1) is amended

(a) in paragraph (a) by striking out "section 5 (2), 7 (2), 43, 54 (3), 58, 63, 80 to 90," and substituting "section 5 (2), 7 (2), 54 (3), 80 to 90,", and

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

(a.1) disputes a refusal to grant a registration certificate or a suspension or cancellation of a registration certificate under section 92.1, .

45 The following section is added:

Regulations in relation to tax rulings

137.1 (1) The Lieutenant Governor in Council may make regulations respecting tax rulings as follows:

(a) respecting transactions that are eligible for tax rulings;

(b) respecting the information that must be included in an application for a tax ruling, including

(i) information respecting the purpose of the proposed transaction,

(ii) information respecting any relevant or related transaction that begins before the application for a tax ruling is made, or is anticipated to begin before the tax ruling is issued,

(iii) information respecting any relevant or related transaction that may be undertaken after the proposed transaction is completed,

(iv) information respecting all other applications for tax rulings, made by or known to the applicant and made in respect of the proposed transaction, including applications made in other jurisdictions,

(v) information respecting any legal or administrative proceedings under this or any enactment, including an enactment of another jurisdiction, that are relevant to the proposed transaction, and

(vi) a summary of any tax ruling known to the applicant that would support or not support the applicant's position respecting the application of the Act and the regulations made under it to the proposed transaction, and a copy of the tax ruling, including a tax ruling from another jurisdiction;

(c) respecting fees for tax rulings, including

(i) requiring all or part of a fee to be paid in advance, and

(ii) setting fees by an amount, a rate or any other method;

(d) respecting refunds of all or part of a fee, including interest on refunds;

(e) respecting withdrawals of applications for tax rulings;

(f) respecting the bases on which the commissioner may reject, or temporarily reject, an application for a tax ruling;

(g) respecting terms, conditions or other qualifications set out in a tax ruling, including variations of terms, conditions or other qualifications;

(h) respecting publication of tax rulings;

(i) respecting procedures to be followed before a tax ruling is considered not binding;

(j) prescribing additional circumstances in which a tax ruling is not binding.

(2) A regulation made under subsection (1) (d) may authorize the commissioner to make a refund from the consolidated revenue fund.

46 Section 138 is amended by adding the following subsection:

(4) For the purposes of a regulation under subsection (1) (l), interest may be calculated in a manner that applies, or has the effect of applying, different rates of interest to all or part of an assessment if a person is entitled to a refund under this Act.

 
Taxation (Rural Area) Act

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

"ministry" means the ministry of the minister responsible for the administration of this Act;

"ministry person" means a person who is employed in, or retained under a contract to perform services for, the ministry;

"personal information" means personal information as defined in Schedule 1 of the Freedom of Information and Protection of Privacy Act; .

48 Section 3 (1) is amended

(a) by striking out "A person who has custody of or control over information or records under this Act must not disclose the information or records to any other person except" and substituting "Subject to sections 3.1 and 3.2, a ministry person who collects information or a record under this Act must not use the information or record or disclose the information or record to another person except", and

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

(a) for the purposes of administering or enforcing this Act, another taxation Act, the Home Owner Grant Act or the Land Tax Deferment Act,

(b) in court proceedings related to this Act or an Act referred to in paragraph (a), .

49 The following sections are added:

Information obtained under certain Acts

3.1 (1) Subject to subsection (2), a ministry person who collects personal information as a result of a disclosure under section 13.1 (2) or (3) of the Home Owner Grant Act or section 13.1 of the Land Tax Deferment Act must not use the personal information or disclose the personal information to another person except as follows:

(a) for the purposes of administering or enforcing this Act;

(b) for the purposes of administering or enforcing any of the following Acts:

(i) the Home Owner Grant Act;

(ii) the Land Tax Deferment Act;

(iii) the Property Transfer Tax Act;

(c) in court proceedings related to this Act or an Act referred to in paragraph (b) of this subsection.

(2) Subsection (1) (a) or (b) does not permit a disclosure to an employee of, or a person who is retained under a contract to perform services for, a municipality or a government agent office.

Information obtained under a taxation Act

3.2 If a ministry person collects information or a record under this Act as a result of a disclosure under another taxation Act, other than the Property Transfer Tax Act, the ministry person must not use the information or record or disclose the information or record to another person for the purposes of administering or enforcing the Home Owner Grant Act or the Land Tax Deferment Act.

50 Section 11 is amended

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

(1.1) The Surveyor of Taxes must issue a copy taxation notice

(a) to a taxpayer if, on or before July 2 of the year the taxes are first levied,

(i) the taxpayer reports to the Surveyor of Taxes that the taxation notice mailed under section 21 (2) was not received and the Surveyor of Taxes is satisfied that the taxpayer did not receive the taxation notice, or

(ii) the British Columbia Assessment Authority reports to the Surveyor of Taxes that there has been a change in address of the taxpayer, or

(b) to the new owner of a parcel of land if, on or before July 2 of the year the taxes are first levied, the British Columbia Assessment Authority reports to the Surveyor of Taxes that there has been a change in ownership of the parcel of land to which the notice relates.

(1.11) Despite subsection (1), if a copy taxation notice is issued under subsection (1.1) in relation to taxes levied in a taxation notice mailed under section 21 (2), the taxes levied are due and payable on the later of

(a) July 2 of the year the copy taxation notice is issued, and

(b) 38 days after the issue date of the copy taxation notice. ,

(b) in subsection (1.2) (b) by striking out "in subsection (1.1) remains unpaid 38 days" and substituting "in subsection (1.11) remains unpaid on the later of July 2 of the year the copy taxation notice is issued and 38 days", and

(c) in subsection (1.2) (c) by striking out "subsection (1.1)" and substituting "subsection (1.11)".

51 Section 21 is amended by adding the following subsection:

(9) Despite subsections (2), (3), (7) and (8) and section 11 (1.1), the Surveyor of Taxes may decline to send a taxation notice, a supplementary taxation notice or a copy taxation notice for a calendar year to a person if the total amount of taxes payable for the calendar year as shown on the notice is less than the prescribed amount.

52 Section 29 is amended by renumbering the section as section 29 (1) and by adding the following subsection:

(2) A person is not personally liable to pay taxes for a calendar year if the Surveyor of Taxes has declined under section 21 (9) to send a taxation notice, a supplementary taxation notice or a copy taxation notice to the person in respect of the taxes payable for the calendar year.

53 Section 57 (2) is amended by adding the following paragraph:

(c.1) prescribing an amount for the purposes of section 21 (9); .

 
Tobacco Tax Act

54 Section 1 of the Tobacco Tax Act, R.S.B.C. 1996, c. 452, is amended

(a) in subsection (1) by adding the following definitions:

"administrative penalty" means a monetary penalty imposed under section 35.1;

"designated officer" means a person who is designated as an officer by the director under section 35.1;

"proposed transaction" means a transaction or type of transaction that

(a) is proposed to be undertaken by an identified person, and

(b) is eligible for a tax ruling under the regulations;

"tax ruling" means a written statement of the director, issued under section 1.2, respecting the application of the Act to a proposed transaction; , and

(b) by adding the following subsection:

(3) In this Act, except sections 25.1, 26 and 34, "penalty" does not include an administrative penalty.

55 The following sections are added:

Application for tax ruling

1.1 (1) Subject to the regulations, a person may apply for a tax ruling by submitting to the director, in the form or in the manner required by the director,

(a) a description of all facts relevant to the proposed transaction to which the tax ruling is to apply, and

(b) all prescribed information.

(2) If a fee is prescribed and all or part of the fee must be paid in advance of the tax ruling, an application under subsection (1) must be accompanied by the amount of the fee that must be paid in advance.

Tax ruling

1.2 (1) On receiving an application for a tax ruling, the director must consider the application and may

(a) reject, or temporarily reject, the application on any basis permitted by the regulations, or

(b) issue a tax ruling to the applicant.

(2) Subject to the regulations, the director may

(a) set out terms, conditions or any other qualification in a tax ruling, and

(b) publish a tax ruling.

Binding nature of tax rulings

1.3 (1) Subject to subsections (2) and (3), a tax ruling is binding on the director in respect of

(a) the proposed transaction that is the subject of the tax ruling, and

(b) the person identified in the application for the tax ruling as the person intending to undertake the proposed transaction.

(2) Subject to the regulations, a tax ruling is not binding on the director

(a) if there is a material omission or misrepresentation in the information provided in the application for the tax ruling,

(b) if a term, condition or other qualification set out in the tax ruling is not met and no variation of the term, condition or qualification is permitted by the director,

(c) if the tax ruling is based on an interpretation of law, and that interpretation is subsequently affected by a decision of a court,

(d) if the tax ruling is based on an enactment that is subsequently amended or repealed, or

(e) in any of the circumstances set out in the regulations.

(3) If a tax ruling is not binding on the director for a reason set out in subsection (2) or the regulations, or if the director subsequently determines the tax ruling to have been in error,

(a) the director may, despite subsection (2), issue or publish a notice that a tax ruling or a class of tax rulings were binding on the date issued but ceased, or will cease, to be binding on a specified date, and

(b) if the director issues or publishes a notice under paragraph (a), a tax ruling is binding in respect of any transaction that clearly begins before the specified date.

Exclusive jurisdiction of director

1.4 (1) The director has exclusive jurisdiction to inquire into and determine all those matters and questions of fact, law and discretion arising or required to be determined in relation to a tax ruling.

(2) A decision of the director on a matter in respect of which the director has exclusive jurisdiction is final and conclusive and is not open to question or review in any court.

No legal proceeding in relation to tax rulings

1.5 No legal proceeding lies or may be commenced or maintained against the government, the director, a former director, or a person acting on behalf of the director or who acted on behalf of a director or former director, for any damages suffered by a person as a result of

(a) the length of time taken to reject an application or issue a ruling, or

(b) relying on a tax ruling that, because of a circumstance described in section 1.3 (2) or (3), is not binding or ceases to be binding.

56 Section 21 (2) is amended by striking out "or" at the end of paragraph (b) and by adding the following paragraph:

(b.1) review a transaction that was the subject of a tax ruling to determine whether

(i) the application for the tax ruling was accurate and complete in all material respects, and

(ii) the transaction was conducted substantially as set out in the application and according to any terms, conditions or other qualifications set out in the tax ruling, or .

57 Section 23 (1) is amended by striking out "or" at the end of paragraph (g), by adding "or" at the end of paragraph (h) and by adding the following paragraph:

(i) a decision of the director under section 35.1 (6), .

58 Section 25 is repealed and the following substituted:

Irregularities do not affect validity

25 An assessment made or a penalty imposed by the director under section 22 or an administrative penalty imposed under section 35.1 (1) or (6) must not be varied or disallowed because of any irregularity, informality, omission or error on the part of any person in the observation of any directory provision up to the date of any of the following:

(a) the issue of the notice of assessment or imposition of a penalty under section 22;

(b) the imposition of an administrative penalty under section 35.1 (1) or (6), as the case may be.

59 Section 25.1 (2) is amended by striking out "on appeal or by reassessment" and substituting "on appeal, by reassessment or on review by the director under section 35.1".

60 Section 30 is repealed and the following substituted:

Recovery of amounts due under Act

30 An amount that is due and payable under this Act, or that has been collected on behalf of the government, may be recovered by action in a court of competent jurisdiction as a debt due to the government, and the court may make an order as to the costs of the action in favour of or against the government.

61 Section 31 (1) is repealed and the following substituted:

(1) If default is made in the payment of an amount, or any part of an amount, that is due and payable under this Act, or that has been collected on behalf of the government, the director may issue a certificate stating the amount due, the amount remaining unpaid and the name of the person by whom it is payable.

62 Section 32 (1) is repealed and the following substituted:

(1) In this section, "taxpayer" includes the following:

(a) a collector;

(b) a dealer;

(c) a board member who is jointly and severally liable with a corporation under section 28.1 (1);

(d) a person who is liable to pay an administrative penalty.

63 Section 35 is amended

(a) in subsection (1) by adding "or administrative penalty" after "any other penalty", and

(b) in subsection (2) (a) by adding "or a designated officer or the director has imposed an administrative penalty under section 35.1" after "subsection (1)".

64 The following sections are added:

Administrative penalties

35.1 (1) Subject to the regulations, if a designated officer is satisfied, on the balance of probabilities, that a person has contravened

(a) a prescribed provision of this Act or the regulations, or

(b) a condition of a dealer's permit or a retail authorization,

the designated officer may serve the person with a determination requiring the person to pay an administrative penalty in the amount specified in the determination.

(2) A determination under subsection (1) must contain the prescribed information and impose an administrative penalty on a person in accordance with the prescribed schedule of penalties.

(3) A person who is served with a determination may, within 15 days after the date the person is served under subsection (1), request a review of the determination by providing the director with a notice of objection.

(4) Unless a person on whom a determination is served provides a notice of objection under subsection (3), the person must pay the administrative penalty specified in the determination within 30 days after the date the person is served under subsection (1).

(5) If a person provides the director with a notice of objection under subsection (3), the director must provide the person with an opportunity to be heard.

(6) After hearing a matter under subsection (5), the director must

(a) decide whether the person contravened the prescribed provisions or the condition of a dealer's permit or a retail authorization referred to in the determination,

(b) decide whether the administrative penalty should be confirmed, varied or cancelled, and

(c) serve the person who provided the notice of objection with a copy of the director's decision.

(7) If a person provides a notice of objection under subsection (3) and the director decides that the person must pay an administrative penalty, the person must pay the administrative penalty within 15 days after the director serves the person with a copy of the director's decision.

(8) If a contravention referred to in subsection (1) continues for more than one day, separate monetary penalties may be imposed for each day the contravention continues.

(9) For the purposes of imposing a prescribed increased administrative penalty for a second or subsequent contravention, the only question to be considered is the sequence of the imposition of administrative penalties and no consideration may be given to the sequence of the contraventions or whether any contravention occurred before or after a determination imposing an administrative penalty.

(10) The director may designate a person as a designated officer.

Limitation on proceedings

35.2 (1) If a person pays an administrative penalty that is imposed on the person under section 35.1, a prosecution for an offence under this Act may not be brought against the person for the same contravention that is the subject of the administrative penalty.

(2) A person who has been charged with an offence under this Act may not be subject to an administrative penalty in respect of the circumstances that gave rise to the charge.

Liability of employees, officers, directors
or agents

35.3 (1) If a corporation contravenes a provision of this Act or the regulations prescribed under section 44 (2) (q) (i), or a condition of a dealer's permit or retail authorization, the following apply for the purposes of section 35.1:

(a) an employee, officer, director or agent of the corporation who authorized, permitted or acquiesced in the contravention also contravenes the provision;

(b) a designated officer may serve a determination under section 35.1 (1) on an employee, officer, director or agent of the corporation who authorized, permitted or acquiesced in the contravention, whether or not the corporation is liable for or pays the administrative penalty.

(2) If a person's employee or agent contravenes a provision of this Act or the regulations prescribed under section 44 (2) (q) (i), or a condition of the person's dealer's permit or retail authorization, in the course of carrying out the employment or agency, the following apply for the purposes of section 35.1:

(a) the employer or principal, as the case may be, also contravenes the prescribed provision;

(b) a designated officer may serve a determination under section 35.1 (1) on the employer or principal of the employee or agent who contravened the prescribed provision.

Six month limitation period

35.4 The time limit for proceeding under section 35.1 (1) is 6 months after the date on which the contravention is alleged to have occurred.

Interest on administrative penalties

35.5 If a person fails to pay an administrative penalty within the time required under section 35.1 (4) or (7), the person must pay interest, at a rate and in the manner prescribed, from the date of the determination under section 35.1 (1) and calculated on

(a) the amount of the administrative penalty specified in the determination under section 35.1 (1), if there is no hearing of the matter under section 35.1 (5), and

(b) the amount of the administrative penalty decided under section 35.1 (6) if there is a hearing of the matter under section 35.1 (5).

65 Section 44 (2) is amended by adding the following:

(q) respecting administrative penalties, including the following:

(i) prescribing provisions of this Act or the regulations for which a contravention may result in the imposition of an administrative penalty;

(ii) establishing procedures to be followed by the director in order to provide an opportunity to be heard under section 35.1 (5), which need not establish an oral hearing, and establishing evidentiary rules respecting opportunities to be heard;

(iii) establishing consequences for failing to appear or provide submissions, as applicable, on an opportunity to be heard under section 35.1 (5), which may include, but are not limited to, proceeding in the absence of the person who fails to appear or without the person's submission, as applicable;

(iv) prescribing a schedule of penalties for the purposes of section 35.1 (2), including establishing different penalties for first or subsequent contraventions of the same provision and establishing penalties that vary according to the value of tobacco, the type of tobacco products or the amount of tobacco that is involved in the contravention;

(v) prescribing a period of time within which a second or subsequent contravention of the same provision must occur for a higher penalty to be imposed;

(vi) authorizing administrative penalties to be imposed on a daily basis for continuing contraventions or failures;

(vii) respecting the matters to be considered by a designated officer or the director in imposing an administrative penalty in a particular case or class of cases;

(viii) establishing the information that a form of determination must contain;

(ix) establishing consequences for failing to pay an administrative penalty, which may include, but are not limited to, imposing additional penalties;

(x) prescribing methods for paying an administrative penalty;

(xi) establishing formulas that may be applied in the calculation or levying of administrative penalties.

66 The following section is added:

Regulations in relation to tax rulings

44.1 (1) The Lieutenant Governor in Council may make regulations respecting tax rulings as follows:

(a) respecting transactions that are eligible for tax rulings;

(b) respecting the information that must be included in an application for a tax ruling, including

(i) information respecting the purpose of the proposed transaction,

(ii) information respecting any relevant or related transaction that begins before the application for a tax ruling was made, or is anticipated to begin before the tax ruling is issued,

(iii) information respecting any relevant or related transaction that may be undertaken after the proposed transaction is completed,

(iv) information respecting all other applications for tax rulings, made by or known to the applicant and made in respect of the proposed transaction, including applications made in other jurisdictions,

(v) information respecting any legal or administrative proceedings under this or any enactment, including an enactment of another jurisdiction, that are relevant to the proposed transaction, and

(vi) a summary of any tax ruling known to the applicant that would support or not support the applicant's position respecting the application of the Act and the regulations made under it to the proposed transaction, and a copy of the tax ruling, including a tax ruling from another jurisdiction;

(c) respecting fees for tax rulings, including

(i) requiring all or part of a fee to be paid in advance, and

(ii) setting fees by an amount, a rate or any other method;

(d) respecting refunds of all or part of a fee, including interest on refunds;

(e) respecting withdrawals of applications for tax rulings;

(f) respecting the bases on which the director may reject, or temporarily reject, an application for a tax ruling;

(g) respecting terms, conditions or other qualifications set out in a tax ruling, including variations of terms, conditions or other qualifications;

(h) respecting publication of tax rulings;

(i) respecting procedures to be followed before a tax ruling is considered not binding;

(j) prescribing additional circumstances in which a tax ruling is not binding.

(2) A regulation made under subsection (1) (d) may authorize the director to make a refund from the consolidated revenue fund.

Transitional Provisions

Transitional -- effect of reduction in purchase or lease
price on tax under Social Service Tax Act

67 (1) In this section, "reduced price" means, if a vendor or lessor offers a reduced purchase price or lease price to a purchaser or lessee, the price paid by the purchaser or lessee in acceptance of the offer.

(2) This section applies if, before June 30, 2007,

(a) a purchaser or lessee pays a reduced price, and

(b) the vendor or lessor collects taxes based on a calculation of tax in a manner other than that required by section 4.2 of the Social Service Tax Act.

(3) For the purposes of section 82 of the Social Service Tax Act, if

(a) the circumstances set out in subsection (2) of this section apply, and

(b) an application for a refund is filed on or after January 1, 2006,

any amount a purchaser or lessee paid as taxes, and the vendor or lessor remitted as taxes, that is more than the amount that was required to be collected as taxes on the reduced price is a refund owing to the purchaser or lessee.

(4) Section 4.2 of the Social Service Tax Act does not apply to the collection of taxes, or remittance of taxes collected, if, in addition to the circumstances set out in subsection (2) of this section, the vendor or lessor has not remitted the collected taxes to the commissioner.

Transitional -- registration certificates
under Social Service Tax Act

68 (1) The commissioner may refuse to grant a registration certificate on any of the grounds set out in section 92.1 (1) of the Social Service Tax Act if

(a) the application for the registration certificate was received on or after January 1, 2006, and

(b) the decision whether to grant the registration certificate was not made before the date that section comes into force.

(2) The commissioner may suspend or cancel a registration certificate granted on or after January 1, 2006, if the commissioner could have refused to grant the registration certificate on any of the grounds set out in section 92.1 (1) of the Social Service Tax Act, had that section been in force at the time the registration certificate was granted.

(3) A decision of the commissioner under this section may be appealed to the minister in accordance with section 118 of the Social Service Tax Act.

(4) Subsections (1) and (2) are repealed on the first anniversary of the date on which this section comes into force.

(5) Subsection (3) is repealed 90 days after subsections (1) and (2) are repealed.

Commencement

69 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

 
Home Owner Grant Act

SECTION 1: [Home Owner Grant Act, section 13.1] permits a ministry person, as defined, to use or disclose personal information collected under the Act for certain specified purposes, including the administration of the Act, the Land Tax Deferment Act, the Property Transfer Tax Act and the Taxation (Rural Area) Act, and restricts the use and disclosure of low-income grant supplement information and shared information, as defined, in the ways set out.

SECTION 2: [Home Owner Grant Act, section 18] grants the power to make regulations excluding information from the definition of "low-income grant supplement information".

 
Hotel Room Tax Act

SECTION 3: [Hotel Room Tax Act, section 1] adds definitions relevant to tax rulings.

SECTION 4: [Hotel Room Tax Act, sections 1.1 to 1.5] adds new sections that set out provisions respecting

• how an application for a tax ruling is made and withdrawn,
• the rejection of an application for a tax ruling, or the issuance of a tax ruling,
• the binding nature of a tax ruling, including the circumstances in which a tax ruling will not be binding,
• the final and conclusive nature of a tax ruling, and
• the prohibition of legal proceedings in respect of a tax ruling.

SECTION 5: [Hotel Room Tax Act, section 17] adds a power to review a transaction that was the subject of a tax ruling.

SECTION 6: [Hotel Room Tax Act, section 43] expands the regulation-making power in respect of the calculation of interest.

SECTION 7: [Hotel Room Tax Act, section 44] adds regulation-making powers relevant to tax rulings.

 
Income Tax Act

SECTION 8: [Income Tax Act, section 1] is consequential to the amendment to section 4.721 of the Act made by this Bill.

SECTION 9: [Income Tax Act, section 4.62] consistent with provisions respecting the transfer to and deduction by a spouse, common-law partner, parent or grandparent of unused tuition and education tax credits, specifies the amounts that are deductible, rather than specifying the amounts that are not deductible, from an individual's tax payable under the Act for a taxation year in calculating the deduction in respect of an individual's unused tuition and education tax credits and in calculating the unused tuition and education tax credit amounts.

SECTION 10: [Income Tax Act, section 4.62] provides for the deduction of the adoption expense credit in determining the individual's unused tuition and education tax credits and the unused tuition and education tax credit amounts.

SECTION 11: [Income Tax Act, section 4.721]

• amends the definition of "BC flow-through mining expenditure" as a result of the amendments to the definition of "flow-through mining expenditure" in the Income Tax Act (Canada);
• adds a definition of "specified sampling";
• corrects an error.

 
Insurance Premium Tax Act

SECTION 12: [Insurance Premium Tax Act, section 1] limits the definition of taxable insurer to an insurer that has a business authorization under the Financial Institutions Act.

 
Land Tax Deferment Act

SECTION 13: [Land Tax Deferment Act, section 13.1] permits a ministry person, as defined, to use or disclose personal information collected under the Act for certain specified purposes, including the administration of the Act, the Home Owner Grant Act, the Property Transfer Tax Act and the Taxation (Rural Area) Act, and restricts the use and disclosure of shared information, as defined, in the ways set out.

 
Mineral Land Tax Act

SECTION 14: [Mineral Land Tax Act, section 5] empowers the administrator to decline to send a notice if the tax payable is less than the prescribed amount.

SECTION 15: [Mineral Land Tax Act, section 8] provides that an owner is not liable to pay taxes if the administrator has declined to mail an assessment to the owner.

 
Motor Fuel Tax Act

SECTION 16: [Motor Fuel Tax Act, section 1] adds the term "IFTA commercial vehicle" to the definitions section, referring to its prescribed meaning.

SECTION 17: [Motor Fuel Tax Act, section 1] adds definitions relevant to tax rulings.

SECTION 18: [Motor Fuel Tax Act, section 2] changes the reference from "commercial motor vehicle" to "IFTA commercial vehicle", which is the type of commercial vehicle covered by the International Fuel Tax Agreement.

SECTION 19: [Motor Fuel Tax Act, Part 1.1] adds a new Part that sets out provisions respecting

• how an application for a tax ruling is made and withdrawn,
• the rejection of an application for a tax ruling, or the issuance of a tax ruling,
• the binding nature of a tax ruling, including the circumstances in which a tax ruling will not be binding,
• the final and conclusive nature of a tax ruling, and
• the prohibition of legal proceedings in respect of a tax ruling.

SECTION 20: [Motor Fuel Tax Act, section 16] changes the reference from "commercial motor vehicle" to "IFTA commercial vehicle", which is the type of commercial vehicle covered by the International Fuel Tax Agreement.

SECTION 21: [Motor Fuel Tax Act, section 41] adds a power to review a transaction that was the subject of a tax ruling.

SECTION 22: [Motor Fuel Tax Act, section 48] makes language respecting the calculation of interest consistent with other taxation statutes.

SECTION 23: [Motor Fuel Tax Act, section 71] permits the term "IFTA commercial vehicle" to be defined by regulation.

SECTION 24: [Motor Fuel Tax Act, section 71] expands the regulation-making power in respect of the calculation of interest.

SECTION 25: [Motor Fuel Tax Act, section 72] adds regulation-making powers relevant to tax rulings.

 
Property Transfer Tax Act

SECTION 26: [Property Transfer Tax Act, section 1] adds definitions for the purposes of the amendments to section 32, and the addition of sections 32.1 and 32.2, of the Act added by this Bill.

SECTION 27: [Property Transfer Tax Act, section 4] adds a definition for "critical illness or injury insurance".

SECTION 28: [Property Transfer Tax Act, section 10] continues the application of the exemptions under section 5 or 6 for first time home buyers if an insurer, within the first 12 months after the registration date, pays out critical illness or injury insurance proceeds to a mortgagor under a mortgage, or a vendor under an agreement of sale, to reduce or eliminate the transferee's indebtedness.

SECTION 29: [Property Transfer Tax Act, section 32] subject to sections 32.1 and 32.2 of the Act, expands the purposes for which information or records under the Act may be used or disclosed to include use or disclosure for the purposes of the administration of the Home Owner Grant Act and the Land Tax Deferment Act.

SECTION 30: [Property Transfer Tax Act, sections 32.1 and 32.2] imposes tighter restrictions than the restrictions set out in section 32 of the Act on the following:

• the use and disclosure of personal information that is received under section 13.1 (2) or (3) of the Home Owner Grant Act or section 13.1 of the Land Tax Deferment Act;
• the use and disclosure of information that is obtained under a taxation Act other than the Property Transfer Tax Act or the Taxation (Rural Area) Act.

SECTION 31: [Property Transfer Tax Act, section 33] is consequential to amendments to the Home Owner Grant Act made by this Bill.

 
Social Service Tax Act

SECTION 32: [Social Service Tax Act, section 1] adds definitions relevant to tax rulings.

SECTION 33: [Social Service Tax Act, section 1] removes installation charges from the definition of "purchase price" because, unless specifically exempted or excluded under another provision, installation is taxed as a service.

SECTION 34: [Social Service Tax Act, section 4.1] clarifies that the commissioner may determine the fair market value of tangible personal property and a lease of tangible personal property, and that the purchase price or lease price is as determined by the commissioner.

SECTION 35: [Social Service Tax Act, section 4.2] sets out how tax is to be calculated if a vendor or lessor offers a reduction in a purchase price or lease price.

SECTION 36: [Social Service Tax Act, Part 1.1] adds a new Part that sets out provisions respecting

• how an application for a tax ruling is made and withdrawn,
• the rejection of an application for a tax ruling, or the issuance of a tax ruling,
• the binding nature of a tax ruling, including the circumstances in which a tax ruling will not be binding,
• the final and conclusive nature of a tax ruling, and
• the prohibition of legal proceedings in respect of a tax ruling.

SECTION 37: [Social Service Tax Act, section 6] removes an unnecessary reference to section 11 (3) of the Act.

SECTION 38: [Social Service Tax Act, section 17.1] replaces specific references with a general reference.

SECTION 39: [Social Service Tax Act, sections 43, 58 and 63] repeals provisions made redundant by changes made by this Bill to section 4.1 of the Act.

SECTION 40: [Social Service Tax Act, section 78] provides that a person who grants a right to use tangible personal property under an agreement that meets specified criteria is not exempt from tax.

SECTION 41: [Social Service Tax Act, section 92] repeals subsections that are moved to section 92.1 of the Act by this Bill.

SECTION 42: [Social Service Tax Act, section 92.1]

• expands the basis on which the commissioner can refuse to grant a registration certificate to include both non-compliance with or contraventions of other taxation statutes, and proposals to engage in unlawful activity;
• expands the basis on which the commissioner can suspend or cancel a registration certificate to include non-compliance with or contraventions of other taxation statutes.

SECTION 43: [Social Service Tax Act, section 113] adds a power to review a transaction that was the subject of a tax ruling.

SECTION 44: [Social Service Tax Act, section 118]

(a) is consequential to the repeal of sections 43, 58 and 63 of the Act by this Bill;

(b) changes a cross reference in the appeal provisions, consequential to the addition of section 92.1 of the Act by this Bill.

SECTION 45: [Social Service Tax Act, section 137.1] adds regulation-making powers relevant to tax rulings.

SECTION 46: [Social Service Tax Act, section 138] expands the regulation-making power in respect of the calculation of interest.

 
Taxation (Rural Area) Act

SECTION 47: [Taxation (Rural Area) Act, section 1] adds definitions for the purposes of the amendments to section 3, and the addition of sections 3.1 and 3.2, of the Act added by this Bill.

SECTION 48: [Taxation (Rural Area) Act, section 3] subject to sections 3.1 and 3.2 of the Act, expands the purposes for which information or records under the Act may be used or disclosed to include use or disclosure for the purposes of the administration of the Home Owner Grant Act and the Land Tax Deferment Act.

SECTION 49: [Taxation (Rural Area) Act, sections 3.1 and 3.2] imposes tighter restrictions than the restrictions set out in section 3 of the Act on the following:

• the use and disclosure of personal information that is received under section 13.1 (2) or (3) of the Home Owner Grant Act or section 13.1 of the Land Tax Deferment Act;
• the use and disclosure of information that is obtained under a taxation Act other than the Taxation (Rural Area) Act or the Property Transfer Tax Act.

SECTION 50: [Taxation (Rural Area) Act, section 11] requires the Surveyor of Taxes to issue a copy taxation notice, and provides for an extension of the date on which taxes levied are due and payable, if the British Columbia Assessment Authority reports to the Surveyor of Taxes that there has been a change in the address of a taxpayer or a change in the ownership of a parcel of land.

SECTION 51: [Taxation (Rural Area) Act, section 21] empowers the Surveyor of Taxes to decline to send a notice if the tax payable is less than the prescribed amount.

SECTION 52: [Taxation (Rural Area) Act, section 29] provides that a person is not liable to pay taxes if the Surveyor of Taxes has declined to send the person a notice.

SECTION 53: [Taxation (Rural Area) Act, section 57] authorizes the Lieutenant Governor in Council to prescribe the amount for the purposes of section 21 (9) of the Act.

 
Tobacco Tax Act

SECTION 54: [Tobacco Tax Act, section 1]

• adds definitions of "administrative penalty" and "designated officer", and clarifies that a reference to "penalty" alone in the Act does not include an administrative penalty, except in the specified sections;
• adds definitions of "proposed transaction" and "tax ruling", which are relevant to tax rulings.

SECTION 55: [Tobacco Tax Act, sections 1.1 to 1.5] adds new sections that set out provisions respecting

• how an application for a tax ruling is made and withdrawn,
• the rejection of an application for a tax ruling, or the issuance of a tax ruling,
• the binding nature of a tax ruling, including the circumstances in which a tax ruling will not be binding,
• the final and conclusive nature of a tax ruling, and
• the prohibition of legal proceedings in respect of a tax ruling.

SECTION 56: [Tobacco Tax Act, section 21] adds a power to review a transaction that was the subject of a tax ruling.

SECTION 57: [Tobacco Tax Act, section 23] permits an appeal to the minister from a decision of the director on a review under section 35.1of the Act, as added by this Bill.

SECTION 58: [Tobacco Tax Act, section 25] expands the application of this section to include administrative penalties imposed under section 35.1 of the Act, as added by this Bill.

SECTION 59: [Tobacco Tax Act, section 25.1] expands the application of this section so that, subject to a review by the director under section 35.1 of the Act, an administrative penalty is valid and binding, despite an error, defect or omission in the administrative penalty or the process by which the administrative penalty was imposed.

SECTION 60: [Tobacco Tax Act, section 30] expands the application of section 30, so that any amount due, including administrative penalties, may be recovered as a debt due to the government.

SECTION 61: [Tobacco Tax Act, section 31] expands the application of section 31, so that the power to recover a debt includes the recovery of administrative penalties.

SECTION 62: [Tobacco Tax Act, section 32] broadens the definition of "taxpayer" to include a person who is liable to pay an administrative penalty.

SECTION 63: [Tobacco Tax Act, section 35] clarifies that the director may impose a penalty under section 35 (1) and assess interest on unpaid taxes under section 32 (2), in addition to the imposition of an administrative penalty under section 35.1.

SECTION 64: [Tobacco Tax Act, sections 35.1 to 35.5] establishes an administrative penalty scheme, which includes the following elements:

• authorizes the designated officer, as defined, to impose a monetary penalty of a prescribed amount on a person for prescribed contraventions of the Act or the regulations, or of a condition of a dealer's permit or retail authorization, by serving a person with a determination;
• enables a person who receives a determination to request a review by the director, and requires the director to provide the person with an opportunity to be heard;
• provides that administrative penalties are alternatives to offence proceedings, so a person cannot be prosecuted for the same contravention that is the subject of an administrative penalty, and an administrative penalty may not be imposed on a person who has been prosecuted for an offence related to the same circumstances;
• requires a person to pay an administrative penalty
  • within 30 days of the date the person is served with the determination by a designated officer, unless the person requests a review of the determination, or
  • within 15 days of the decision of the director, if a review of the determination was requested;
• grants the director the power to appoint designated officers for the purposes of section 35.1 of the Act;
• provides that employees, officers, directors or agents of corporations who authorize, permit or acquiesce in a contravention by the corporation of a prescribed provision of the Act or the regulations, or of a condition of a retail authorization or dealer's permit, are liable for the contravention whether or not a penalty has also been imposed on the corporation;

SECTION 65: [Tobacco Tax Act, section 44] permits the enactment of regulations respecting the new administrative penalty scheme, including

• establishing contraventions that are subject to administrative penalties;
• setting out the practices and procedures to be followed by the director in conducting hearings respecting administrative penalties;
• prescribing schedules of penalties that may be imposed.

SECTION 66: [Tobacco Tax Act, section 44.1] adds regulation-making powers relevant to tax rulings.

SECTION 67: [Transitional -- effect of reduction in purchase or lease price on tax under Social Service Tax Act]

• clarifies that, if a refund is claimed in respect of taxes paid and remitted before tax on a price reduction was required to be calculated in accordance with section 4.2 of the Social Service Tax Act, as added by this Bill, any amount a purchaser or lessee paid as taxes that did not have to be paid as taxes is a refund owing to the purchaser or lessee;
• provides that the method of calculating taxes required under section 4.2 of the Act does not apply to a vendor or lessor who has already collected, but not yet remitted, taxes as of the date section 4.2 comes into force.

SECTION 68: [Transitional -- registration certificates under Social Service Tax Act] provides that the grounds for refusing, cancelling or suspending a registration certificate, as set out in section 92.1 (1) of the Act, as added by this Bill, apply to applications made, or certificates granted, on or after January 1, 2006.