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This Act is current to August 17, 2022
See the Tables of Legislative Changes for this Act’s legislative history, including any changes not in force.

Provincial Sales Tax Act

[SBC 2012] CHAPTER 35

Assented to May 31, 2012

Contents
Part 1 — Interpretation
Division 1 — Definitions and Interpretation
1Definitions
2Proof of residence in British Columbia
3Deemed expenses of a person
4Transactions deemed to be transfer of possession
4.1Redemption of prepaid purchase card
5Carrying on business in British Columbia
6Deemed use of tangible personal property or software in the course of business
7How tax is to be calculated
8Liability of other persons
8.1Registration number of principal
Division 2 — Purchase Price and Lease Price
9Purchase price of tangible personal property
10Original purchase price of tangible personal property
10.1Original purchase price of certain vehicles
11Purchase price of tangible personal property related to affixed machinery and improvements to real property
12Lease price of tangible personal property
13Original lease price of tangible personal property
14Purchase price of software
15Original purchase price of software
16Purchase price of promotional material in promotional sale
17Purchase price of taxable service
18Original purchase price of related service
19Original purchase price of accommodation
20Original purchase price of legal services
21Original purchase price of telecommunication service
21.1Original purchase price of online marketplace service
22Reduced purchase price or lease price
23Purchase price or lease price if coupon accepted
24Purchase price if trade-in allowed on purchase of tangible personal property
25Depreciated purchase price of tangible personal property
26Purchase price if bundled purchase
26.1Food or other tangible personal property sold with beverages
26.2Lease price if bundled lease
27Valuation by director
Part 2 — When Tax Is Payable
28When tax is payable in respect of a purchase or lease
29When tax is payable if tax not collected when consideration is paid or becomes due
30When tax is payable in respect of vehicles
30.1When tax is payable in respect of promotional material
31When tax is payable in respect of gifts of vehicles, boats or aircraft
32Tax payment agreements in relation to tangible personal property and software
33When consideration becomes due
Part 3 — Taxes in Relation to Tangible Personal Property
Division 1 — Rates of Tax
34Rates of tax in relation to purchase price
35Rates of tax in relation to lease price
36Rates of tax in relation to gifts
Division 2 — Purchases of Tangible Personal Property
37Tax on purchase
Division 3 — Leases of Tangible Personal Property
38Application of this Division
39Tax on leases
40Tax on motor vehicle leased outside British Columbia and registered for use in British Columbia
41Tax if leased property used in British Columbia during rental period
42Tax if balance of lease price becomes due on breach of lease
43Additional tax on lease of passenger vehicle
44Exemption if lease under sale and lease-back arrangement
45Refund for leased property used outside British Columbia
46Refund on motor vehicle leased outside British Columbia
Division 4 — Tangible Personal Property Brought into British Columbia
47Definition
48Application of this Division
49Tax if tangible personal property brought into British Columbia for use
50Tax on registration of vehicle brought into British Columbia
51Tax if tangible personal property brought into British Columbia for temporary use
51.1Tax if tangible personal property no longer for temporary use
52Tax if tangible personal property brought into British Columbia by non-residents
53Exemption if less than minimum threshold use in British Columbia
Division 5 — Property Brought into British Columbia from Outside Canada
54Application of this Division
55Tax if property brought into British Columbia from outside Canada
56Detention of tangible personal property
57Tax payable to collection agent even though exemption claimed
58Refund if property brought into British Columbia for temporary use
Division 6 — Conveyances Used Interjurisdictionally
59Definitions
60Tax if conveyance purchased in British Columbia for interjurisdictional use
61Tax if sale and lease-back of conveyance
61.1Tax if sale and lease-back of conveyance for which tax paid under former Act
62Tax if leased conveyance used in British Columbia
63Tax if conveyance brought into and used in British Columbia
64Tax if change in use of conveyance acquired for resale
65Estimate of hours or distance conveyance will travel
66Adjustment of tax
67Refund for conveyances used interjurisdictionally
Division 7 — Multijurisdictional Vehicles
68Definitions
69Tax if multijurisdictional vehicle licensed
70When tax under section 69 must be paid
71Adjustment of tax under section 69
72Tax if vehicle ceases to be multijurisdictional
72.1Tax if transferred vehicle ceases to be multijurisdictional
73Liability of other persons
74Refund or credit of tax if fleet licensing changed
74.1Refund if vehicle ceases to be multijurisdictional
74.2Refund at end of vehicle licence period
75Credit if tax previously paid
75.1Transition — credit if tax previously paid
75.2Refund from Insurance Corporation of British Columbia authorized under regulations
76Refund or credit for trade-in vehicles
77Refund for replacement vehicles
78Refund for short term rental vehicles
Division 8 — Affixed Machinery and Improvements to Real Property
79Contractor exempt from tax under section 37 or 49
80Tax on tangible personal property used to improve real property if contractor exempt
80.1Contractor exempt from tax under section 37 or 49 if other person would be exempt
80.2Refund of tax paid by contractor under Division 5
80.3Tax on tangible personal property used to improve real property if contractor obtained refund
80.4Tax if change in use of tangible personal property used to improve real property
80.5Transitional tax on tangible personal property used by contractor to improve real property
80.6Transitional tax on tangible personal property used to improve real property
80.61Evidence for purposes of sections 79, 80.2 and 80.5
80.7-80.8Repealed
Division 9 — Change in Use
81Tax if change in use of property acquired for resale
82Tax if property used for new purpose
82.01Tax if leased property used for new purpose
82.1Tax on parts or material if property containing parts or material used for new purpose
82.2Tax if conditions for exemption not maintained for specified period
82.3Tax if change in use of vehicle, boat or aircraft exempt from tax under Consumption Tax Rebate and Transition Act
83Tax if change in use of property acquired for lease
84Tax if change in use of resulting tangible personal property
84.1Tax if dealer or manufacturer changes use of motor vehicle
85Tax if change in use of prototype
86Tax if change in use of property for which refund received under taxation agreement
87Tax if recording exhibited
88Tax if leased tangible personal property becomes part of real property
Division 10 — Tangible Personal Property Acquired by Small Seller
89Tax on acquisition of eligible tangible personal property
90Tax on eligible tangible personal property brought into British Columbia
91Exemption in relation to eligible tangible personal property purchased from small seller
Division 11 — Energy Products
92Tax on purchase of energy product
93Tax if energy product brought into British Columbia for use
94Tax under this Division is additional tax
95Exemptions in relation to energy products
96Refund of excess if maximum tax paid
97Reporting requirements in relation to energy products
Division 12 — Other Taxes in Relation to Tangible Personal Property
98Liquor sold under liquor permit
99Tax on acquisition of exclusive product by independent sales contractor
100Tax on gift of vehicle, boat or aircraft given in British Columbia
101Tax on reusable containers
102Tax on leased property occasionally supplied with operator
103Tax on subsequent purchase or lease after refund or credit
Part 4 — Taxes in Relation to Software
104Application of this Part
105Tax on software
106Tax on use of software on device in British Columbia
107Tax on business use of software on devices in and outside British Columbia
108Adjustment of tax under section 107
109Tax if use of software changes
109.1Tax if conditions of exemption for software not maintained for specified period
110Tax if change in use of resulting software, telecommunication service or tangible personal property
111Tax if change in use of software for which refund received under taxation agreement
112Tax on purchase of software by small seller
113Exemptions in relation to software
114Exemption in relation to software purchased from small seller
Part 5 — Taxes in Relation to Services
Division 1 — Services Related to Purchase
115Definition
116Tax if contract for property conversion related to purchase
117Tax if contract for modification of purchased property
117.1Tax if resulting property used for new purpose
118Exempt property
118.1Refund if contract for property conversion not related to purchase
Division 2 — Related Services in Relation to Tangible Personal Property
119Tax on purchase of related service provided in British Columbia
120Tax if related service provided outside British Columbia
120.1 Tax if change in use of related service
121Exemptions from tax under this Division
Division 3 — Accommodation
122Tax on accommodation
123Tax on accommodation in designated accommodation area
123.01Transition — application of section 123 if change in designation status or tax rate
123.1Obligation to pay and collect tax on accommodation purchased for resale
123.2Tax if change in use of accommodation purchased for resale
123.3Tax if accommodation used for new purpose
124Refund in relation to new designated accommodation area
124.01Refund in relation to increase in tax rate
124.1Payment into consolidated revenue fund
125Payment to designated recipient
Division 4 — Legal Services
126Tax if legal services provided in British Columbia
127Tax if legal services provided to British Columbia resident
128Exemption in relation to legal aid
129Deemed references if person providing legal services is partner or employee
Division 5 — Telecommunication Services
130Tax on telecommunication service
130.1Tax on telecommunication service purchased substantially for resale
130.2Additional tax on telecommunication service purchased substantially for resale
130.3Tax on telecommunication service if no longer substantially for resale
131Tax on dedicated telecommunication service
132Calculation if telecommunication only partly through dedicated system
132.1Tax if telecommunication service used for new purpose
133Tax if motion picture exhibited
134Exemption if telecommunication service purchased for resale
134.1Exemption for activities outside British Columbia in relation to telecommunication
134.2Exemption in relation to copying content of telecommunication service or broadcasting
Division 5.1Online Marketplace Services
134.3Tax if online marketplace service provided in British Columbia
134.4Exemption if online marketplace service purchased for resale
134.5Tax if online marketplace service used for new purpose
Division 6 — Exemptions in Relation to Taxable Service Purchased by or from Small Seller
135Exemptions not applicable to small seller
136Exemption in relation to taxable service purchased from small seller
Part 6 — Exemptions
137Taxable component sold with non-taxable component for single price
138Exemption for minimal sale of tangible personal property
139Exemptions in relation to food
140Exemption in relation to fuel
140.1Exemption in relation to electricity
141Exemptions in relation to industry and commerce
141.1Exemption for affixed machinery
142Exemptions for tangible personal property intended for lease
143Exemption in relation to recording of motion picture or audio production
144Limit on exemptions
145Evidence required to claim certain exemptions
Part 7 — Refunds
Division 1 — Refunds from Collectors
146Refund if no obligation to pay
147Refund if person fails to provide evidence at time of sale or lease
148Prohibition — refund already received
149Refund if motor vehicle returned to collector
150Refund or credit of purchase price
151Refund or credit of lease price
Division 2 — Refunds from Director
152Refund if no obligation to pay or collect
153Refund if person fails to provide evidence at time of sale or lease
153.1Refund if person fails to provide evidence at time of vehicle registration
153.2Refund if promotional distributor fails to provide evidence at time of sale
154Motor vehicle returned to manufacturer
155Refund in accordance with Nisa'a Nation Taxation Agreement
156Refund in accordance with treaty first nation tax treatment agreement
157Refund by director if collector does not provide refund
158Property shipped out of British Columbia
158.1Property used to improve real property situated outside British Columbia
159Refund or deduction for bad debts
160Refund to collector
161Refund to small seller
162Refunds authorized or required under regulations
163Prohibition — refund or credit already received
Division 3 — General
164Definition
165Claim for refund
166Refund limits
167Appropriation for refunds
Part 8 — Registration and Tax Collection
Division 1 — Registration
168Registration
169Vendors and lessors must be registered
170Contractor must be registered
171Direct seller must be registered
172Person located in Canada but outside British Columbia must be registered
172.1Person located outside British Columbia must be registered
172.2British Columbia minimum revenue threshold
172.3Online marketplace facilitator must be registered
172.4Person who provides online marketplace services must be registered
173Suspension or cancellation of registration
174When registrant must notify director
175Cancellation of registration if small seller
176Registrant who is independent sales contractor
177Prohibitions relating to use of registration number
Division 2 — Collection and Remittance of Tax
178Collector is agent
179Collection and remittance of tax by collector
179.1Designation of collector if agent and principal
179.2Collection of tax if sale by auction
179.3Collection of tax if sale or lease is facilitated by online marketplace facilitator
180Collection of tax by independent sales contractor
181Collection of tax under section 127
182Collection of tax on liquor sold under liquor permit
182.1Transition — remittance of tax on liquor sold under special occasion licence
182.2Collection of tax on liquor sold by auction
183Duties of small seller
184Tax collected deemed to be held in trust for government
185Allowance for collection of tax
186Collector's returns
187Certificate required for bulk transaction
188Prohibited advertising or other representations
189Liability satisfied if tax collected
190Payment first applied against tax payable
191Agreement with federal government
Division 3 — Taxpayer Returns
192When a person must file a taxpayer return
193Taxpayer return
Part 9 — Administration and Enforcement
Division 1 — Inspections and Audits
194Inspection and audit powers
195Requirement to provide records
196Demand for information
196.1Evidence — copies of records
196.2Fee for attending at location outside British Columbia
Division 2 — Assessments
197Notice of assessment
198Assessment of tax not remitted by collector
199Assessment if amount not paid or remitted or if excess deduction or refund
199.1Assessment if joint and several liability for amount assessed or imposed against designated collector
199.2Assessment if joint and several liability for assessment or penalty
200Assessment period under sections 198 and 199
201Anti-avoidance rule
Division 3 — Penalties and Interest
202Failure to register
203Failure to levy tax
204Incorrect information
205Failure to levy, remit or pay tax and excess deduction or refund
206Interest until notice of assessment given
206.1Interest after notice of assessment given
Division 4 — Board Member's Liability
207Board member's liability
208Refunds when joint and several liability
209Deemed board member
210Assessment against board member
Part 10 — Appeals
211Appeal to minister
212Appeal to court
213Irregularities
214Tax collection not affected by pending appeal
215If decision set aside or amount reduced or increased on appeal
Part 11 — Recovery of Amounts Owing
216Collection bond
217Court proceeding to recover amount owing
218Summary proceedings
219Alternative remedies
220Attachment of funds
221Lien
222Responsibility of person having control of property
223Notice of enforcement proceedings
224Limitation period
225Application for injunction
Part 12 — General
226Designation of director
227Delegation
228Confidentiality
229How and when documents are given by director
229.01Proof of compliance
229.02Proof of receipt
229.03How and when documents are given by minister
229.04When documents are given to minister
229.1Estimates of revenue
Part 13 — Offences and Penalties
230Offences and penalties
231Onus of proof
232Evidence
233Offence by corporation
234Time limit on prosecution
235Section 5 of Offence Act
Part 14 — Regulations
236General regulation-making authority
237Regulations in relation to tax payment agreements
238Regulations in relation to tangible personal property
239Regulations in relation to software
240Regulations in relation to accommodation
240.1Regulations in relation to online marketplace services
241Regulations in relation to exemptions
242Regulations in relation to refunds
243Regulations in relation to refunds and credits in relation to exclusive products
244Regulations in relation to claims of solicitor-client privilege
245Regulations specifying tax for coin-operated purchases
246Other regulations
Part 15 — Amendments to Income Tax Act
247-254 Income Tax Act Amendments
255Commencement

Part 1 — Interpretation

Division 1 — Definitions and Interpretation

Definitions

1   In this Act:

"accommodation" means

(a) lodging in a hotel, motel, resort, boarding house, rooming house or bed and breakfast establishment, other than lodging excluded by regulation, and

(b) lodging in a prescribed dwelling;

"affixed machinery" means machinery, equipment or apparatus that is used directly in the manufacture, production, processing, storage, handling, packaging, display, transportation, transmission or distribution of tangible personal property or the provision of software or a service and is affixed to, or installed in, a building, a structure or land so that it ceases to be personal property at common law, but does not include the following:

(a) machinery, equipment or apparatus that is affixed to, or installed in, a building, structure or land for the purpose of

(i) heating, air conditioning or lighting a building or structure,

(ii) sewage disposal for a building or structure, or

(iii) lifting persons or freight within a building or structure by elevator or escalator;

(b) machinery, equipment or apparatus that

(i) is of such a size that it must be constructed on the site where it is to be used,

(ii) by its nature or design, would normally be expected to remain, for its useful life, on the site at which it is constructed,

(iii) does not run on rails or tracks, or does not otherwise move around on or from the site at which it is constructed, and

(iv) cannot be moved from the site at which it is constructed without

(A) dismantling the machinery, equipment or apparatus, or

(B) dismantling or causing substantial damage to the building or structure to which it is affixed or in which it is installed;

(c) other prescribed machinery, equipment or apparatus;

"apparatus" means a complex machine or device designed to accomplish a specific purpose and consisting of an integrated assembly of parts each having a definite function;

"assessment" includes reassessment;

"associated corporation" means a corporation that is associated with another corporation within the meaning of section 256 of the Income Tax Act (Canada);

"band" has the same meaning as in section 2 of the Indian Act (Canada);

"BC resident" means a person who

(a) resides, ordinarily resides or carries on business in British Columbia, or

(b) enters British Columbia with the intention of residing or carrying on business in British Columbia;

"board member" means

(a) a member of a board of directors of a corporation, and

(b) except in sections 165 [claim for refund] and 233 [offence by corporation], a person who is deemed to be a board member of a corporation under section 209;

"boat" means a vessel or other craft that is designed for transporting or drawing on water persons or things, regardless of the method of propulsion or lack of method of propulsion;

"boiler" means a system that is intended for application

(a) in a hot water central space heating system, or

(b) in a hot water central space heating system that services a potable hot water system;

"collection agent" means

(a) a customs officer, and

(b) if an agreement is in force between the Canada Post Corporation and the government of Canada or an agent of the government of Canada providing for the collection of tax under Division 5 [Property Brought into British Columbia from Outside Canada] of Part 3 by that corporation, a postal agent;

"collector" means the following:

(a) a registrant;

(b) a person who is required under section 169 (1) to (4), 170, 171, 172, 172.1, 172.3 or 172.4 to be registered under section 168 but who is not registered;

(c) a person referred to in section 169 (5) during the first month in which the person is a vendor and while the person is not a registrant;

"collector's return" means a return filed under section 186;

"conveyance" does not include a vehicle;

"customs officer" means an officer as defined in section 2 of the Customs Act (Canada) who is employed at a customs office in British Columbia;

"dedicated telecommunication service" means the right, whether exercised or not, to send from British Columbia or receive in British Columbia a telecommunication by using a circuit, a communications channel, a partial communications channel or any other means of sending or receiving a telecommunication that is dedicated to the exclusive use of the purchaser of the service;

"dedicated telecommunication system" means a circuit, a communications channel, a partial communications channel or any other means of sending or receiving a telecommunication that is dedicated to the exclusive use of a person as a result of that person having purchased the right to send from British Columbia or receive in British Columbia a telecommunication by that circuit, communications channel, partial communications channel or other means of sending or receiving a telecommunication;

"designated accommodation area" means an area designated by regulation under section 240 (1) (b);

"designated recipient", in relation to a designated accommodation area, means the municipality, regional district or eligible entity designated by regulation for the purposes of the tax imposed under sections 123 (1), 123.2 (3) and 123.3 (3) in the designated accommodation area;

"direct seller" means a person who

(a) does not regularly make retail sales of exclusive products in British Columbia from an established commercial premises, and

(b) sells exclusive products primarily to independent sales contractors;

"director" means a person designated by the minister to administer this Act;

"electronic device" means a device by which a person may

(a) send, receive, download, view or access a telecommunication, or

(b) use software;

"eligible charity" means

(a) a registered charity, or

(b) a corporation that

(i) is a society, as defined in the Societies Act, and

(ii) is a member of the British Columbia Association of Healthcare Auxiliaries;

"eligible entity" means the following:

(a) an entity that

(i) is a not-for-profit business association,

(ii) has a place of business in a designated accommodation area, and

(iii) actively engages in tourism marketing, programs or projects in the designated accommodation area;

(b) an entity that meets the prescribed qualifications;

"eligible tangible personal property" means tangible personal property other than the following:

(a) a vehicle;

(b) an aircraft;

(c) a boat;

(d) liquor;

(d.1) a vapour product;

(d.2) a fossil fuel combustion system;

(d.3) tobacco;

(e) other prescribed tangible personal property;

"eligible taxable service" means a taxable service other than accommodation, legal services, a telecommunication service or an online marketplace service;

"energy product" means the following:

(a) natural gas;

(b) fuel oil, other than kerosene, used for the purposes of heating, cooling or raising steam;

(c) propane in a vaporized form delivered

(i) by a public utility, as defined in the Utilities Commission Act,

(ii) by pipe, and

(iii) to purchasers at the place at which the propane will be used;

(d) other prescribed tangible personal property;

"entry date", in relation to tangible personal property, means the date on which the tangible personal property is first brought or sent into or delivered in British Columbia;

"e-substance" means a solid, liquid or gas

(a) that is designed for use in an e-vaping device,

(b) that, on being heated, produces a vapour, and

(c) that may or may not contain nicotine,

but does not include cannabis within the meaning of the Cannabis Control and Licensing Act other than cannabis that is in liquid form;

"e-vaping device" means

(a) a product or device containing an electronic or battery-powered heating element capable of vapourizing an e-substance for inhalation or release into the air, and

(b) a prescribed product or device similar in nature or use to a product or device described in paragraph (a),

but does not include a product or device described in paragraph (a) that is prescribed;

"Excise Tax Act" means the Excise Tax Act (Canada);

"exclusive product" means tangible personal property that

(a) is acquired, manufactured or produced by a direct seller, and

(b) is primarily offered to a purchaser at a retail sale by an independent sales contractor of the direct seller,

but does not include liquor, tobacco, a vehicle, a boat, an aircraft, a manufactured building, a vapour product or a fossil fuel combustion system;

"facilitate", in relation to an online marketplace seller's sale, provision or lease through an online marketplace, includes facilitation through an agent, partner, joint venturer or associated corporation or other indirect facilitation;

"fair market value" means the following:

(a) in relation to tangible personal property other than a boat or a modified motor vehicle, the price at which the legal and beneficial interest in the tangible personal property would, if unencumbered, be conveyed by a willing seller acting in good faith to a willing buyer acting in good faith in an arm's length retail sale in the open market and that must be determined

(i) in a manner that includes any charges, costs or expenses referred to in section 10 (2) (e) and (f) [original purchase price of tangible personal property], and

(ii) for the purposes of sections 49 and 100, in a manner that also includes any costs or expenses referred to in section 10 (2) (f) that were incurred by the person who provided the gift;

(a.1) in relation to a boat, the price at which the legal and beneficial interest in the boat and any property, other than prescribed property, that, at or before the time that title to the boat passes, is, or is intended to be, attached to, stored in or used in connection with the operation of the boat, would, if unencumbered, be conveyed by a willing seller acting in good faith to a willing buyer acting in good faith in an arm's length retail sale in the open market and that must be determined

(i) in a manner that includes any charges, costs or expenses referred to in section 10 (2) (e) and (f) [original purchase price of tangible personal property] that were incurred in relation to the boat and the property, and

(ii) for the purposes of sections 49 and 100, in a manner that also includes any costs or expenses referred to in section 10 (2) (f) that were incurred in relation to the boat and the property and were incurred by the person who provided the gift;

(a.2) in relation to a modified motor vehicle, the price of the modified motor vehicle as otherwise would be determined under paragraph (a), if that paragraph were applicable, less the portion of that price that can reasonably be attributed to those special features or modifications of the vehicle for which the sole purpose is to

(i) facilitate the use of the vehicle by, or the transportation of, an individual using a wheelchair, or

(ii) equip the vehicle with an auxiliary driving control that facilitates the operation of the vehicle by an individual with a disability;

(b) in relation to software, the price at which the legal and beneficial interest in the software would, if unencumbered, be conveyed or provided by a willing seller acting in good faith to a willing buyer acting in good faith in an arm's length retail sale in the open market;

(c) in relation to a taxable service, the price at which the legal and beneficial interest in the taxable service would, if unencumbered, be provided by a willing seller acting in good faith to a willing buyer acting in good faith in an arm's length retail sale in the open market;

(d) in relation to tangible personal property that is leased for a certain period of time, the price at which the right to use that tangible personal property, for that amount of time, would be provided by a willing lessor acting in good faith to a willing lessee acting in good faith in an arm's length lease in the open market;

"First Nation individual" means an individual

(a) who is an Indian, as defined in the Indian Act (Canada), and

(b) whose property is exempt from taxation under section 87 of the Indian Act (Canada) or under a provision of a final agreement equivalent to that section;

"fleet licensing date", in respect of vehicles licensed in a calendar year as part of a fleet, means the first date in that calendar year that the fleet vehicles are licensed as such;

"fossil fuel combustion system" means a system, including any parts or components included as part of the system on the initial purchase of the system, that may rely on, in whole or in part, combustion of coal, kerosene, heavy fuel oil, heating oil, natural gas or propane, and that is

(a) designed, in whole or in part, for indoor use and is

(i) a central forced air furnace, unit heater, fireplace, boiler or similar system,

(ii) an air conditioner or similar system, or

(iii) a storage water heater, instantaneous water heater or similar system, or

(b) a system prescribed for the purposes of this definition,

but does not include a heat pump or a system prescribed for the purpose of exclusion from this definition;

"fuel oil" means the following:

(a) renewable diesel fuel, as defined in Schedule 1 of the Carbon Tax Act;

(b) any liquid fuel containing any derivative of coal, petroleum or natural gas, other than the following:

(i) gasoline;

(ii) propane;

(iii) butane;

(iv) ethane;

(v) pentanes plus, as defined in Schedule 1 of the Carbon Tax Act;

"heat pump" means a system prescribed for the purposes of this definition;

"heating oil" means a substance that is a distillate of crude oil and that has a viscosity of not greater than 14 centistokes at 50°C, but does not include butane, ethane, gas liquids, jet fuel, naphtha, propane, pentanes plus or refinery gas;

"heavy fuel oil" means a substance that is a distillate or a residual of crude oil and that has a viscosity of greater than 14 centistokes at 50°C;

"improvement to real property" does not include affixed machinery;

"independent sales contractor", in relation to a direct seller, means an individual who

(a) has a right to purchase exclusive products from the direct seller or from another independent sales contractor of the direct seller for the purpose of resale,

(b) is not an agent or employee of the direct seller,

(c) purchases exclusive products referred to in paragraph (a) for resale or for the individual's own use or consumption, and

(d) sells or offers to sell the exclusive products to a purchaser only

(i) temporarily at an established business premises,

(ii) at premises that are not a business premises, or

(iii) at the individual's private residence;

"lease", except in section 33 (2) [when consideration becomes due], means an agreement under which a person is given a right to use tangible personal property, but does not include the following:

(a) an agreement under which the person supplying the tangible personal property supplies a person to operate the property;

(b) the leasing of furnishings if

(i) the furnishings are leased under an agreement to rent a house, apartment or other residential accommodation, and

(ii) the rent payments under the agreement are not divided into separate amounts for the accommodation and the furnishings;

(c) a right to use tangible personal property that is supplied with the purchase of accommodation if there is no separate price for the right to use the tangible personal property;

(d) a right to use tangible personal property that, in prescribed circumstances, is merely incidental to an agreement for the right to use real property, or to an agreement for the provision of services that are not subject to tax under this Act;

(e) a right to use laundry machines, car wash vacuum cleaners and wands, arcade machines, video terminals, jukeboxes, claw merchandise machines, slot machines and similar equipment by or through which payment is made;

(f) a right to use garbage bins, compost bins or similar receptacles that are provided for disposal services;

"lease price" means the lease price under Division 2 [Purchase Price and Lease Price];

"legal services" means

(a) services that come within the meaning of the practice of law under the Legal Profession Act,

(b) services described in section 18 of the Notaries Act, and

(c) legally related services prescribed as legal services,

but does not include services provided by a person to the person's employer in the course of employment;

"lessee", except in section 33 (2) [when consideration becomes due], means a person who leases, in or outside British Columbia, tangible personal property that

(a) is for use or is used by the person in British Columbia,

(b) is for use or is used in British Columbia by another person at the first person's expense,

(c) is for use or is used in British Columbia by a principal for whom the first person acts as agent, or

(d) is for use or is used in British Columbia by another person at the expense of a principal for whom the first person acts as agent;

"lessor" means a person, including an assignee, liquidator, administrator, receiver, receiver manager, trustee or similar person,

(a) who, in the ordinary course of the person's business, leases or offers to lease tangible personal property to a lessee, and

(b) who does one or more of the following:

(i) carries on business in British Columbia;

(ii) enters into leases in British Columbia with a lessee;

(iii) leases, to a lessee or any other person referred to in the definition of "lessee", tangible personal property that is in British Columbia at the time the lease is entered into;

(iv) transfers possession of or delivers the tangible personal property to a lessee, or any other person referred to in the definition of "lessee", in British Columbia;

"licensing date", in respect of a vehicle that is licensed as part of a fleet, means the fleet licensing date;

"liquor" has the same meaning as in the Liquor Control and Licensing Act;

"liquor permit" means a permit of a prescribed class of permits issued under the Liquor Control and Licensing Act;

"manufactured building" means a manufactured mobile home, a manufactured modular home or a portable building;

"manufactured mobile home" means

(a) a mobile home manufactured to Canadian Standards Association Standard Z240, or

(b) any other mobile home that is similar in design and construction to a mobile home constructed to Canadian Standards Association Standard Z240,

if the home is in all essential features completely constructed before delivery from the factory, but does not include the following: 

(c) a recreational vehicle;

(d) a travel trailer, including a Park Model travel trailer manufactured to Canadian Standards Association Standard Z240;

(e) a slide-on camper, a chassis-mounted camper or other similar camper;

(f) a prescribed structure, vehicle or component of a vehicle used for a prescribed use;

"manufactured modular home" means

(a) a modular home manufactured to Canadian Standards Association Standard A277, or

(b) any other modular home built to a standard required by the National Building Code of Canada and qualifying for Canada Mortgage and Housing Corporation financing,

if each module is in all essential features completely constructed before delivery from the factory;

"meal" does not include a prescribed meal;

"modified business vehicle" means a passenger vehicle, other than a multijurisdictional vehicle,

(a) that, for business use, is brought or sent into British Columbia, delivered in British Columbia, purchased or leased, and

(b) that is modified by the addition of equipment or apparatus that

(i) enables the vehicle to be used for a specific business purpose, and

(ii) is not related to the operation of the vehicle as a vehicle;

"modified motor vehicle" means a motor vehicle, other than a multijurisdictional vehicle, that

(a) is manufactured or modified to facilitate the use of the vehicle by, or the transportation of, an individual using a wheelchair, or

(b) is equipped with an auxiliary driving control to facilitate the operation of the vehicle by an individual with a disability;

"month" means a calendar month;

"motor vehicle" has the same meaning as in the Motor Vehicle Act;

"multijurisdictional vehicle" means a vehicle in respect of which tax is payable under section 69 (1);

"non-resident" means a person who does not reside, ordinarily reside or carry on business in British Columbia and who

(a) owns real property in British Columbia, or

(b) leases, as lessee, real property in British Columbia if the term of the lease, including the cumulative total of all options and rights to extend or renew that lease, is at least 5 years;

"non-taxable component" means property, software or a service that, if purchased separately from a taxable component, would not be subject to tax under this Act or would be exempt from tax under this Act;

"online marketplace facilitator" means the following persons:

(a) a person who

(i) operates, owns or controls, or jointly operates, owns or controls, an online marketplace,

(ii) facilitates through the online marketplace an online marketplace seller's

(A) retail sale, provision or lease of tangible personal property, or

(B) retail sale or provision of software or taxable services other than legal services, and

(iii) collects payment in respect of the sales, provisions or leases referred to in subparagraph (ii) (A) and (B);

(b) a prescribed person who is involved in

(i) the operation, ownership or control of an online marketplace, or

(ii) the facilitation of sales, provisions or leases referred to in paragraph (a) (ii) (A) and (B) through the online marketplace;

"online marketplace seller" means a person who, through an online marketplace operated, owned or controlled by one or more online marketplace facilitators,

(a) sells, provides or leases tangible personal property, or

(b) sells or provides software or taxable services other than legal services;

"online marketplace service" means any of the following services provided by an online marketplace facilitator, or by an agent, partner, joint venturer or associated corporation of the online marketplace facilitator, to an online marketplace seller:

(a) the listing of tangible personal property, software or taxable services, other than legal services, for sale, lease or provision, as applicable;

(b) advertising or promotion;

(c) customer service;

(d) storage;

(e) the fulfillment of orders or bookings;

(f) the collection or facilitation of payment, either directly or indirectly, and transmission of the payment to the online marketplace seller;

(g) accepting or assisting with cancellations, changes, returns or exchanges of tangible personal property, software or taxable services other than legal services;

(h) other services to facilitate an online marketplace seller's sale, provision or lease of tangible personal property, or sale or provision of software or taxable services, other than legal services, through an online marketplace;

"original lease price", in relation to tangible personal property, means the lease price of the tangible personal property under section 13;

"original purchase price" means the following:

(a) in relation to a passenger vehicle other than a modified business vehicle or a modified motor vehicle that is a passenger vehicle, the purchase price of the passenger vehicle under section 10.1 (1);

(a.1) in relation to a modified business vehicle, the purchase price of the modified business vehicle under section 10.1 (2);

(a.2) in relation to a modified motor vehicle that is a passenger vehicle, the purchase price of the modified motor vehicle under section 10.1 (3);

(b) in relation to software, the purchase price of the software under section 15;

(c) in relation to a taxable service, the purchase price of the taxable service under section 18 [related service], 19 [accommodation], 20 [legal services], 21 [telecommunication service] or 21.1 [online marketplace service];

"parents' advisory council" means a parents' advisory council established under section 8 of the School Act, or under section 8 of that Act as it applies under section 166.26 of that Act;

"passenger vehicle" means

(a) a motor vehicle designed primarily as a means of transport for individuals, other than a motor vehicle excluded by regulation, and

(b) a prescribed vehicle;

"portable building" means a building that

(a) is in all essential features completely constructed before delivery, and

(b) is designed to be moved from location to location as a whole building without being self-propelled,

including a portable floating structure, but does not include the following:

(c) a manufactured mobile home;

(d) a manufactured modular home;

(e) a building that is principally designed for use as a building ancillary to a residence;

(f) a prescribed building;

"portable floating structure" means a floating structure that

(a) is not designed as a means of transportation or to be self-propelled, and

(b) is sold as a unit consisting of

(i) a building that covers most of the surface of the platform or barge referred to in subparagraph (ii), and

(ii) a platform or barge, the primary purpose of which is the flotation of the building;

"postal agent" means the Canada Post Corporation established under the Canada Post Corporation Act and its officers, employees and agents;

"prepaid purchase card" means a card, written certificate or other voucher that is redeemable for a future purchase or lease of tangible personal property, or for a future purchase of software or a taxable service, and includes a gift card and gift certificate;

"promotional distribution" means the provision by a person to another person of promotional material for which

(a) the purchase price paid by the person providing the promotional material exceeds the amount of the payment specifically made for that promotional material by the person to whom it is provided, or

(b) a purchase price is not specifically charged to and required to be paid by the person to whom that promotional material is provided;

"promotional distributor" means a person who provides, by way of promotional distribution to another person, promotional material;

"promotional material" means tangible personal property, software or a telecommunication service that is provided for one or more of the following purposes:

(a) to describe, or to promote or encourage the purchase, use or consumption of, tangible personal property, software, services or real property;

(b) to provide or distribute to a person a catalogue, directory, listing or compilation of persons, places, prices, services, commodities or businesses in respect of the purchase, use or consumption of tangible personal property, software, services or real property;

(c) a prescribed purpose,

but does not include a vehicle, boat or aircraft that is provided for one or more of the purposes referred to in paragraphs (a) to (c);

"promotional sale" means the provision of promotional material as described in paragraph (a) of the definition of "promotional distribution";

"prototype" means the first full-scale functional form of a new type or a new construction of tangible personal property, but does not include software or prescribed tangible personal property;

"purchase price" means the purchase price under Division 2 [Purchase Price and Lease Price];

"purchaser" means the following:

(a) in relation to tangible personal property, a person who acquires tangible personal property at a sale

(i) for the person's own use or consumption,

(ii) for use or consumption by another person at the expense of the person acquiring the property,

(iii) for use or consumption by a principal for whom the person acquiring the property acts as agent, or

(iv) for use or consumption by another person at the expense of a principal for whom the person acquiring the property acts as agent;

(b) in relation to software, a person who agrees to pay or is otherwise obliged to pay consideration for software

(i) provided to the person for the person's own use or benefit,

(ii) provided to another person for that person's use or benefit at the expense of the person who agrees to pay or is otherwise obliged to pay consideration for the software,

(iii) provided to a principal for whom the person acts as agent for the use or benefit of that principal, or

(iv) provided to another person for that person's use or benefit at the expense of a principal for whom the person who agrees to pay or is otherwise obliged to pay consideration for the software acts as agent;

(c) in relation to a related service, legal services, a telecommunication service or an online marketplace service, a person who agrees to pay or is otherwise obliged to pay consideration for a related service, legal services, a telecommunication service or an online marketplace service

(i) provided to the person for the person's own use or benefit,

(ii) provided to another recipient for that recipient's use or benefit at the person's expense,

(iii) provided to a principal for whom the person acts as agent for the use or benefit of that principal, or

(iv) provided to another recipient for that recipient's use or benefit at the expense of a principal for whom the person acts as agent;

(d) in relation to accommodation, a person who agrees to pay or is otherwise obliged to pay consideration for accommodation

(i) provided to the person for the person's own use or benefit,

(ii) provided to another recipient for that recipient's use or benefit at the person's expense,

(iii) provided to a principal for whom the person acts as agent for the use or benefit of that principal,

(iv) provided to another recipient for that recipient's use or benefit at the expense of a principal for whom the person acts as agent, or

(v) if the person is a tourism agent and the accommodation is for inclusion in a tourism service provided or to be provided by the tourism agent,

but does not include a person when the person acquires, or agrees to pay or is otherwise obliged to pay consideration for, a prepaid purchase card;

"registered charity" has the same meaning as in section 248 (1) of the Income Tax Act (Canada);

"registrant", except when used in relation to a registrant under Part IX of the Excise Tax Act, means a person who is registered under section 168 and whose registration is not suspended or cancelled;

"registration number" means a registration number issued under section 168 (3);

"related individual" has the same meaning as in the Property Transfer Tax Act;

"related service", except in the definition of "legal services", means any service provided to tangible personal property or any service provided to install tangible personal property, but does not include the following services:

(a) a service provided to install tangible personal property that will become affixed machinery or an improvement to real property on installation;

(b) a service provided by a person to the person's employer in the course of employment;

(c) a service provided to manufacture tangible personal property that is fundamentally different from the tangible personal property from which it was manufactured;

(d) a service provided to software, or to install software, that is subject to tax or is exempt from tax imposed under Part 3 [Taxes in Relation to Tangible Personal Property];

"reporting period", in relation to a collector or in relation to a person who enters into an agreement with the director under section 32, means the period specified by the director;

"resident taxpayer" means an individual who

(a) resides, ordinarily resides or carries on business in British Columbia, and

(b) brings or sends into British Columbia, or receives delivery of in British Columbia, tangible personal property for use or consumption

(i) by the individual,

(ii) by another individual at the first individual's expense,

(iii) by another individual for whom the first individual acts as agent, or

(iv) by another individual at the expense of a principal for whom the first individual acts as agent;

"retail sale" means the following:

(a) in relation to tangible personal property, a sale of tangible personal property to a purchaser for purposes of use or consumption and not for resale;

(b) in relation to software, a sale of software to a purchaser for purposes of use or benefit and not for resale;

(c) in relation to a taxable service, a sale of the taxable service to a purchaser for purposes of use or benefit and not for resale;

"reusable container" means

(a) a container in which a product is packaged or delivered, or

(b) a pallet on which a product is packaged or delivered,

and that is capable of being returned and reused;

"sale" includes the following:

(a) a conditional sale;

(b) a sale on credit or for which the price is payable by instalments;

(c) an exchange;

(d) barter;

(e) a transfer, conditional or otherwise, of title to or possession of tangible personal property under a contract;

(f) a delivery of tangible personal property at a price or other consideration;

(g) a transfer of ownership of, title to or possession of tangible personal property

(i) given as security, by foreclosure or by repossession under lien note or conditional sale contract, whether voluntary or otherwise, or by order of a court, or by any other means by which security may be realized, or

(ii) in the process of winding up, liquidating or dissolving a corporation;

(h) a provision, by way of promotional distribution, of promotional material;

(i) a provision of software at a price or other consideration;

(j) a provision of a taxable service at a price or other consideration,

but does not include the following:

(k) the provision of tangible personal property, software or a telecommunication service that, in prescribed circumstances, is merely incidental to a contract for the provision of services that are not subject to tax under this Act;

(l) the provision of tangible personal property by a contractor for the purposes of fulfilling a contract under which the contractor is required to supply and affix, or install, affixed machinery or improvements to real property;

(m) except in prescribed circumstances, the provision by a registered charity, or a person acting on behalf of a registered charity, of tangible personal property of nominal value as a gift in return for a donation, all of which is provided to the registered charity;

(n) the provision of tangible personal property under an agreement for the purchase of accommodation if

(i) the fundamental and overriding objective of the agreement is the purchase of the accommodation and not the acquisition of the tangible personal property,

(ii) there is no separate purchase price for the tangible personal property, and

(iii) the total consideration payable for the accommodation, including the tangible personal property provided, is the same as, or only marginally different from, what would be the total consideration payable for the accommodation if the tangible personal property were not provided;

(o) the provision of a paper invoice to the person being invoiced;

"short term rental vehicle" means a multijurisdictional vehicle that, during a vehicle licence period,

(a) is leased primarily for periods of 28 days or less, and

(b) is made available to the public for leasing referred to in paragraph (a);

"small seller" means a person

(a) who is located in British Columbia,

(b) who sells eligible tangible personal property or software or provides taxable services at a sale in British Columbia,

(b.1) who does not sell, in the ordinary course of business, vehicles, aircraft, boats, vapour products, fossil fuel combustion systems, tobacco or other tangible personal property prescribed for the purposes of paragraph (e) of the definition of "eligible tangible personal property",

(b.2) who does not sell liquor, other than under a liquor permit or by auction,

(b.3) who does not sell cannabis within the meaning of the Cannabis Control and Licensing Act,

(b.4) who in the previous 12 months has not knowingly sold eligible tangible personal property or software at a sale other than a retail sale,

(c) who does not regularly

(i) make retail sales of eligible tangible personal property or software in British Columbia from an established commercial premises, or

(ii) provide a taxable service in British Columbia from an established commercial premises,

(d) who does not maintain an established business premises in British Columbia,

(e) whose gross revenue in the previous 12 months from all retail sales of eligible tangible personal property and software and all provisions of a taxable service is $10 000 or less,

(f) whose reasonable estimate of gross revenue in the 12 months after the 12 months referred to in paragraph (e) from all retail sales of eligible tangible personal property and software and all provisions of a taxable service is $10 000 or less,

(g) who is not any of the following:

(i) a lessor;

(ii) an independent sales contractor;

(iii) a contractor who, for the purposes of fulfilling a contract under which the contractor is required to supply and affix, or install, affixed machinery or improvements to real property, purchases at a sale in British Columbia, brings or sends into British Columbia or receives delivery of in British Columbia tangible personal property;

(iv) a vendor within the meaning of paragraph (d) of the definition of "vendor",

(v) an online marketplace facilitator, and

(h) who is not registered under section 168 and is not required under section 169, 170 or 171 to be registered under section 168;

"soda beverage" means

(a) a carbonated or other effervescent beverage that contains sugar, another natural sweetener or an artificial sweetener, and

(b) a prescribed beverage or food made with a beverage,

but does not include

(c) liquor,

(d) dealcoholized beer, sparkling wine or cider, if the beverage contains 1% or less alcohol by volume, or

(e) a prescribed beverage;

"software" means the following:

(a) a software program that is delivered or accessed by any means;

(b) the right, whether exercised or not, to use a software program that is delivered or accessed by any means;

(c) a contractual right

(i) to receive modifications to or new versions of software programs described in paragraph (a) or (b) if modifications or new versions become available, whether or not that right is exercised, and

(ii) to which section 15 (2) (h) does not apply;

"substantially" means more than 90%;

"tangible personal property" means the following:

(a) personal property that can be seen, weighed, measured, felt or touched, or that is in any other way perceptible to the senses, and includes natural or manufactured gas;

(b) electricity;

(c) heat;

(d) affixed machinery;

(e) an improvement to real property or part of an improvement to real property that is removed from the site at which it is affixed or installed, while it is removed from that site;

"tax", in relation to tax under this Act, includes, except in section 199 [assessment if amount not paid or remitted or if excess deduction or refund],

(a) an amount a person must pay to the government under section 187 (2) [certificate required for bulk transaction], and

(b) an amount for which a person is personally liable to the government under section 222 (4) [responsibility of person having control of property];

"taxable component" means tangible personal property, software or a taxable service that would be subject to tax under this Act if purchased separately from other property or services;

"taxable service" means any of the following:

(a) services described in section 116 (2) (b) [tax if contract for property conversion related to purchase] that are provided under the contract referred to in that provision;

(b) services described in section 117 (2) (b) [tax if contract for modification of purchased property] that are provided under the contract referred to in section 117 (2) (a) (i) or (ii);

(c) a related service;

(d) accommodation;

(e) legal services;

(f) a telecommunication service;

(g) an online marketplace service;

"taxpayer return" means a taxpayer return under section 193;

"telecommunication" means signs, signals, writing, images, sound or intelligence of any nature;

"telecommunication service" means any of the following:

(a) the right, whether exercised or not, to utilize a telecommunication system to send or receive a telecommunication by means of an electronic device that is ordinarily situated in British Columbia;

(b) the utilization of a telecommunication system to send or receive a telecommunication by means of an electronic device that is ordinarily situated in British Columbia;

(c) a dedicated telecommunication service;

(d) the right, whether exercised or not, to download, view or access, by utilizing a telecommunication system, one or more of the following telecommunications by means of an electronic device that is ordinarily situated in British Columbia:

(i) an audio book;

(ii) an audio program;

(iii) music;

(iv) a ring tone;

(v) a television program, motion picture or other video;

"telecommunication system" means a wire, cable, radio, optical or other electromagnetic system, or a similar technical system, for the transmission, emission or reception of a telecommunication;

"tobacco" means tobacco and tobacco products in any form in which they may be consumed by a purchaser, and includes snuff and raw leaf tobacco;

"tourism agent" means a person who

(a) purchases accommodation from a vendor, and

(b) for payment, makes all or any part of that accommodation available for use by one or more persons as part of a tourism service;

"trailer" has the same meaning as in the Motor Vehicle Act;

"use",

(a) in relation to tangible personal property, includes the following:

(i) the exercise of any right or power over tangible personal property incidental to the ownership of it, other than the sale of the property;

(ii) the leasing by a person of tangible personal property to another person;

(iii) the storing, keeping or retaining of tangible personal property for any purpose;

(iv) the provision of tangible personal property by way of promotional distribution;

(v) the utilization of tangible personal property by the person to whom the tangible personal property is provided by way of promotional distribution;

(vi) the employment or utilization of tangible personal property by its owner, an employee of that owner or an independent contractor retained by that owner, in the course of carrying out work or performing services for another person;

(vii) the consumption, employment or utilization of tangible personal property by a person in the course of providing a service;

(viii) the consumption, employment or utilization of tangible personal property for the purposes of fulfilling a contract for the supply and installation of affixed machinery or improvements to real property;

(ix) the provision by a registered charity of tangible personal property of nominal value as a gift in return for a donation,

but does not include the following:

(x) the exercise of a right or power over or the storing, keeping or retaining of tangible personal property that was brought or sent into or delivered in British Columbia for the sole purpose of subsequently transporting it out of British Columbia for use outside British Columbia;

(xi) the exercise of a right or power over or the storing, keeping or retaining of tangible personal property, other than reusable containers, that was brought or sent into or delivered in British Columbia for the sole purpose of being processed, fabricated or manufactured into, or attached to or incorporated into, other tangible personal property that is to be transported outside British Columbia for use solely outside British Columbia other than for the purpose of fulfilling a contract for the supply and installation of affixed machinery or improvements to real property situated outside British Columbia;

(xii) the storing, keeping or retaining of tangible personal property that was brought or sent into or delivered in British Columbia for the sole purpose of being repaired and, after repair, being transported outside British Columbia for use outside British Columbia;

(xiii) the storing, keeping or retaining of tangible personal property for the sole purpose of resale,

(b) in relation to software, includes the following:

(i) the sending, receiving, downloading, viewing or accessing of software by any means, including if possession of the software is maintained by the provider of the software or another person;

(ii) the exercise of any right or power over software incidental to the ownership of it;

(iii) the storing, keeping or retaining of software for any purpose;

(iv) the holding of a right described in paragraph (b) or (c) of the definition of "software";

(v) the provision of software by way of promotional distribution;

(vi) the utilization of software by the person to whom the software is provided by way of promotional distribution;

(vii) the employment or utilization of software by its owner, an employee of that owner or an independent contractor retained by that owner, in the course of carrying out work or performing services for another person;

(viii) the employment or utilization of software by a person in the course of providing a service,

(c) in relation to a taxable service, includes the employment or utilization of a taxable service by a person in the course of providing a service,

(d) in relation to a related service, includes the provision by a person of a related service to another person,

(e) in relation to accommodation, includes the following:

(i) the exercise of any right or power over accommodation incidental to the ownership of it, other than the sale of the accommodation;

(ii) the employment or utilization of accommodation by its owner, an employee of that owner or an independent contractor retained by that owner, in the course of carrying out work or performing services for another person,

(f) in relation to a telecommunication service, includes the following:

(i) the sending, receiving, downloading, viewing or accessing of a telecommunication by any means, including if possession of the telecommunication, telecommunication system or telecommunication service is maintained by the provider of the telecommunication service or another person;

(ii) in relation to paragraph (d) of the definition of "telecommunication service", the exercise of any right or power over the right to send, receive, download, view or access a telecommunication incidental to the right;

(iii) the provision by a person of a telecommunication service to another person;

(iv) the storing, keeping or retaining of a telecommunication or telecommunication service for any purpose;

(v) the holding of a right to send, receive, download, view or access a telecommunication;

(v.1) the provision of a telecommunication service by way of promotional distribution;

(v.2) the utilization of a telecommunication service by the person to whom the telecommunication service is provided by way of promotional distribution;

(v.3) the utilization of, or the holding of a right to utilize, a telecommunication system;

(vi) the employment or utilization of a telecommunication service by its owner, an employee of that owner or an independent contractor retained by that owner, in the course of carrying out work or performing services for another person, and

(g) in relation to online marketplace services, includes the employment or utilization of an online marketplace service by an online marketplace seller for the purpose of

(i) selling, providing or leasing tangible personal property through an online marketplace, or

(ii) selling or providing software or taxable services, other than legal services, through an online marketplace;

"user" means the following:

(a) a person who utilizes in British Columbia tangible personal property

(i) for the person's own use or consumption,

(ii) for the use or consumption of another person at the expense of the person utilizing the property,

(iii) for the use or consumption of a principal for whom the person utilizing the property acts as agent, or

(iv) for the use or consumption of another person at the expense of a principal for whom the person utilizing the property acts as agent;

(b) a person who utilizes in British Columbia software

(i) for the person's own use or benefit,

(ii) for the use or benefit of another person at the expense of the person utilizing the software,

(iii) for the use or benefit of a principal for whom the person utilizing the software acts as agent, or

(iv) for the use or benefit of another person at the expense of a principal for whom the person utilizing the software acts as agent;

(c) a promotional distributor who provides promotional material by way of promotional distribution;

(d) a person who utilizes in British Columbia accommodation

(i) for the person's own use or benefit,

(ii) for the use or benefit of another person at the expense of the person utilizing the accommodation,

(iii) for the use or benefit of a principal for whom the person utilizing the accommodation acts as agent, or

(iv) for the use or benefit of another person at the expense of a principal for whom the person utilizing the accommodation acts as agent;

"vapour product" means

(a) an e-vaping device,

(b) an e-substance, and

(c) a cartridge, part or accessory for an e-vaping device;

"vehicle" has the same meaning as in the Motor Vehicle Act;

"vehicle licence period", in respect of a vehicle, means the period beginning on a date on which a licence is issued for the vehicle and ending on the expiry date for the licence established on that licensing date;

"vehicle registration legislation" means the Commercial Transport Act, Motor Vehicle Act or Off-Road Vehicle Act;

"vendor" means the following:

(a) in relation to tangible personal property, a person, including an assignee, liquidator, administrator, receiver, receiver manager, trustee or similar person, who, in the ordinary course of the person's business, in British Columbia, sells, offers to sell, provides or offers to provide tangible personal property to a purchaser at a retail sale in British Columbia, but does not include

(i) a small seller, or

(ii) an independent sales contractor, but only in relation to the sale of exclusive products to a purchaser at a retail sale in British Columbia;

(b) in relation to software, a person, including an assignee, liquidator, administrator, receiver, receiver manager, trustee or similar person, who, in the ordinary course of the person's business, in British Columbia, sells, offers to sell, provides or offers to provide software to a purchaser at a retail sale in British Columbia, but does not include a small seller;

(c) in relation to a taxable service other than accommodation, a person, including an assignee, liquidator, administrator, receiver, receiver manager, trustee or similar person, who, in the ordinary course of the person's business, in British Columbia, sells, offers to sell, provides or offers to provide a taxable service to a purchaser at a retail sale in British Columbia, but does not include a small seller;

(d) in relation to accommodation, a person, including an assignee, liquidator, administrator, receiver, receiver manager, trustee or similar person, who sells, offers to sell, provides or offers to provide accommodation in British Columbia to a purchaser at a retail sale, but does not include a tourism agent;

"zero-emission vehicle" has the same meaning as in the Zero-Emission Vehicles Act.

Proof of residence in British Columbia

2   For the purposes of this Act, any of the following is proof, in the absence of evidence to the contrary, that an individual resides in British Columbia:

(a) the receipt by the individual of a grant under section 2 of the Home Owner Grant Act;

(b) the receipt by a person of a grant in respect of the individual's residence and for the individual's benefit under section 3, 4 or 5 of the Home Owner Grant Act;

(c) the enrolment of the individual as a beneficiary under the medical services plan continued under the Medicare Protection Act.

Deemed expenses of a person

3   (1) For the purposes of this Act, a person who, for the use or consumption by another person, acquires at a sale, leases as lessee, utilizes, brings or sends into British Columbia, or receives delivery of in British Columbia, tangible personal property

(a) is deemed to have done so at the first person's expense, or

(b) if the first person acts on behalf of or as an agent for a principal, is deemed to have done so at the expense of the principal,

unless the other person acquires the tangible personal property at a sale or is given the right to use the tangible personal property under a lease.

(2) For the purposes of this Act, a person who, for the use or benefit of another person, agrees to pay or is otherwise obliged to pay consideration for software or a taxable service

(a) is deemed to have done so at the first person's expense, or

(b) if the first person acts on behalf of or as an agent for a principal, is deemed to have done so at the expense of the principal,

unless the other person agrees to pay or is otherwise obliged to pay consideration for the software or taxable service.

Transactions deemed to be transfer of possession

4   (1) For the purposes of the definition of "sale", the director may determine that a transaction in relation to tangible personal property was in place of a transfer of title, exchange or barter.

(2) If the director makes a determination under subsection (1), for the purposes of the definition of "sale", the transaction is deemed to be a transfer of possession of the tangible personal property under a contract.

Redemption of prepaid purchase card

4.1   For the purposes of this Act, the redemption of a prepaid purchase card for a purchase or lease of tangible personal property, or for a purchase of software or a taxable service, constitutes the payment of consideration, in full or in part, for the purchase or lease.

Carrying on business in British Columbia

5   For the purposes of this Act, a person is deemed to be carrying on business in British Columbia if

(a) the person's name, or any name under which the person carries on business, is listed in a telephone directory

(i) for any part of British Columbia, and

(ii) in which an address or telephone number in British Columbia is given for the person,

(b) the person's name, or any name under which the person carries on business, appears or is announced in any advertisement in which an address or telephone number in British Columbia is given for the person, or

(c) the person has, in British Columbia,

(i) employees or other representatives, or

(ii) a warehouse, office or place of business.

Deemed use of tangible personal property or software in the course of business

6   For the purposes of this Act, a person is deemed to use tangible personal property or software in the course of the person's business if

(a) the tangible personal property or software is used

(i) by another person at the first person's expense,

(ii) by a principal for whom the first person acts as agent, or

(iii) by another person at the expense of a principal for whom the first person acts as agent, and

(b) the use by the other person referred to in paragraph (a) is intended to assist the business of the first person referred to in that paragraph.

How tax is to be calculated

7   (1) The tax imposed under this Act must be

(a) calculated separately on every sale or lease of tangible personal property or every sale of software or a taxable service, and

(b) computed to the nearest cent, with 1/2 cent counted as one cent.

(2) For the purposes of subsection (1) (a), if 2 or more items of tangible personal property are sold or leased on the same occasion or as part of one transaction and the items are subject to tax imposed under this Act at the same rate, the total of the sales or leases is deemed to be one sale or lease.

(3) For the purposes of subsection (1) (a), if 2 or more items of software are sold on the same occasion or as part of one transaction and the items are subject to tax imposed under this Act at the same rate, the total of the sales is deemed to be one sale.

(4) For the purposes of subsection (1) (a), if 2 or more taxable services are sold on the same occasion or as part of one transaction and the taxable services are subject to tax imposed under this Act at the same rate, the total of the sales is deemed to be one sale.

Liability of other persons

8   (1) If there is more than one purchaser of tangible personal property, software or a taxable service subject to tax under this Act, each purchaser is jointly and severally liable for the tax.

(2) If there is more than one lessee of tangible personal property subject to tax under this Act, each lessee is jointly and severally liable for the tax.

Registration number of principal

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

Division 2 — Purchase Price and Lease Price

Purchase price of tangible personal property

9   For the purposes of this Act, the purchase price of tangible personal property is as follows:

(a) subject to paragraphs (b) to (f), the purchase price of the tangible personal property under section 10 [original purchase price of tangible personal property];

(b) subject to paragraphs (c) to (f), if section 22 (1) [reduced purchase price] applies in respect of the purchase, the purchase price of the tangible personal property under that section;

(c) subject to paragraphs (d) to (f), if section 23 [purchase price if coupon accepted] applies in respect of the purchase, the purchase price of the tangible personal property under that section;

(d) subject to paragraphs (d.1) to (f), if section 24 [purchase price if trade-in allowed on purchase of tangible personal property] applies in respect of the sale, the purchase price of the tangible personal property under that section;

(d.1) subject to paragraphs (d.2) to (f), if section 26 [purchase price if bundled purchase] applies in respect of the tangible personal property, the purchase price of the tangible personal property under that section;

(d.2) subject to paragraphs (e) and (f), if section 16 [purchase price of promotional material acquired or received by promotional distribution] applies in respect of the tangible personal property, the purchase price of the tangible personal property under that section;

(e) subject to paragraph (f), if section 25 [depreciated purchase price of tangible personal property] applies in respect of the tangible personal property, the purchase price of the tangible personal property under that section;

(f) if the tangible personal property is a modified motor vehicle, the purchase price of the modified motor vehicle under paragraphs (a) to (e) less that portion of the price that can reasonably be attributed to those special features or modifications of the vehicle for which the sole purpose is to

(i) facilitate the use of the vehicle by, or the transportation of, an individual using a wheelchair, or

(ii) equip the vehicle with an auxiliary driving control that facilitates the operation of the vehicle by an individual with a disability.

Original purchase price of tangible personal property

10   (1) For the purposes of this Act, the purchase price of tangible personal property is equal to the total value of the consideration that the seller or person from whom the tangible personal property passes accepts as the price or on account of the price of the tangible personal property covered by the sale.

(2) Without limiting subsection (1), for the purposes of this Act, the purchase price of tangible personal property includes the following:

(a) a price in money accepted by the seller or person from whom the tangible personal property passes as the price or on account of the price of the tangible personal property covered by the sale;

(b) the value of services accepted by the seller or person from whom the tangible personal property passes as the price or on account of the price of the tangible personal property covered by the sale;

(c) the value of the tangible personal property or software exchanged or acquired by the seller or person from whom the tangible personal property passes as the price or on account of the price of the tangible personal property covered by the sale;

(d) in the case of tangible personal property that is repossessed, the value of the tangible personal property;

(e) any charges for

(i) transportation or delivery of the tangible personal property sold, or

(ii) interest, finance, service, customs and excise charges in relation to the tangible personal property sold

that are incurred at or before the time that title to the tangible personal property covered by the sale passes under that sale, whether or not those charges are shown separately on any record of the sale, but does not include interest charges on a conditional sale contract if the amount of those charges is segregated on the record of sale or is billed separately to the purchaser, and is payable over the term of the contract;

(f) if the tangible personal property is purchased, manufactured, processed or otherwise acquired outside British Columbia and subsequently brought or sent into or received in British Columbia for use or consumption in British Columbia, the costs and expenses incurred by the user, or by a person who is not a BC resident and who brought or sent into British Columbia, or received delivery of in British Columbia, the tangible personal property, before the use of the tangible personal property in British Columbia, including

(i) costs and expenses for materials, labour and other manufacturing and processing costs and expenses, and

(ii) costs and expenses for service, customs, excise and transportation;

(f.1) in relation to the purchase of a boat, the total value of the consideration that is payable by the purchaser for any property that, at or before the time that title to the boat covered by the sale passes under that sale, is, or is intended to be, attached to, stored in or used in connection with the operation of the boat, whether or not shown separately on any record of the sale or billed separately;

(g) in relation to the purchase of ready-mixed concrete that is to be delivered by or on behalf of the seller to the place where the purchaser intends to use the ready-mixed concrete, the total value of the consideration that is payable by the purchaser to have the ready-mixed concrete delivered to that place;

(h) any charge, including a royalty or licence fee, relating to

(i) the use of the tangible personal property, or

(ii) the use of knowledge required to use the tangible personal property,

whether incurred before, at or after the time that title to the tangible personal property covered by the sale passes under that sale;

(i) any charge relating to a warranty made with respect to the tangible personal property, or any charge relating to the maintenance of or service to the tangible personal property, that the purchaser must pay or agree to pay in order to obtain title to the tangible personal property covered by the sale, whether or not those charges are shown separately on any record of the sale or billed separately;

(j) any tax imposed under the Tobacco Tax Act, whether or not shown separately on any record of sale or billed separately.

Original purchase price of certain vehicles

10.1   (1) For the purposes of paragraph (a) of the definition of "original purchase price", the purchase price of a passenger vehicle, other than a modified business vehicle or a modified motor vehicle that is a passenger vehicle, is as follows:

(a) subject to paragraphs (b) and (c), the purchase price of the passenger vehicle under section 10 [original purchase price of tangible personal property];

(b) subject to paragraph (c), if section 22 (1) [reduced purchase price] applies in respect of the purchase, the purchase price of the passenger vehicle under that section;

(c) if section 23 [purchase price if coupon accepted] applies in respect of the purchase, the purchase price of the passenger vehicle under that section.

(2) For the purposes of paragraph (a.1) of the definition of "original purchase price", the purchase price of a modified business vehicle is as follows:

(a) subject to paragraphs (b) and (c), the purchase price of the modified business vehicle under section 10 [original purchase price of tangible personal property] less the portion of that purchase price that can reasonably be attributed to the modifications referred to in paragraph (b) of the definition of "modified business vehicle";

(b) subject to paragraph (c), if section 22 (1) [reduced purchase price] applies in respect of the purchase, the purchase price of the modified business vehicle under that section less the portion of that purchase price that can reasonably be attributed to the modifications referred to in paragraph (b) of the definition of "modified business vehicle";

(c) if section 23 [purchase price if coupon accepted] applies in respect of the purchase, the purchase price of the modified business vehicle under that section less the portion of that purchase price that can reasonably be attributed to the modifications referred to in paragraph (b) of the definition of "modified business vehicle".

(3) For the purposes of paragraph (a.2) of the definition of "original purchase price", the purchase price of a modified motor vehicle that is a passenger vehicle is as follows:

(a) subject to paragraphs (b) and (c), the purchase price of the modified motor vehicle under section 10 [original purchase price of tangible personal property] less the portion of that purchase price that can reasonably be attributed to those special features or modifications of the vehicle for which the sole purpose is to

(i) facilitate the use of the vehicle by, or the transportation of, an individual using a wheelchair, or

(ii) equip the vehicle with an auxiliary driving control that facilitates the operation of the vehicle by an individual with a disability;

(b) subject to paragraph (c), if section 22 (1) [reduced purchase price] applies in respect of the purchase, the purchase price of the modified motor vehicle under that section less the portion of that purchase price that can reasonably be attributed to those special features or modifications of the vehicle for which the sole purpose is to

(i) facilitate the use of the vehicle by, or the transportation of, an individual using a wheelchair, or

(ii) equip the vehicle with an auxiliary driving control that facilitates the operation of the vehicle by an individual with a disability;

(c) if section 23 [purchase price if coupon accepted] applies in respect of the purchase, the purchase price of the modified motor vehicle under that section less the portion of that purchase price that can reasonably be attributed to those special features or modifications of the vehicle for which the sole purpose is to

(i) facilitate the use of the vehicle by, or the transportation of, an individual using a wheelchair, or

(ii) equip the vehicle with an auxiliary driving control that facilitates the operation of the vehicle by an individual with a disability.

Purchase price of tangible personal property related to affixed machinery and improvements to real property

11   (1) Despite sections 9 and 10, for the purposes of section 80 (2), the purchase price of tangible personal property is equal to the greater of the following:

(a) the purchase price payable by the contractor for the tangible personal property;

(b) the purchase price of the tangible personal property set out in the agreement referred to in section 79 (1) (c) or (2) (c).

(2) Despite sections 9 and 10, for the purposes of section 80.3 (2), the purchase price of tangible personal property is equal to the greater of the following:

(a) the purchase price payable by the contractor for the tangible personal property;

(b) the purchase price of the tangible personal property set out in the agreement referred to in section 80.2 (1) (d).

(3) Despite sections 9 and 10, for the purposes of section 80.6 (2), the purchase price of tangible personal property is equal to the greater of the following:

(a) the purchase price payable by the contractor for the tangible personal property;

(b) the purchase price of the tangible personal property set out in the agreement referred to in section 80.5 (6) (a).

Lease price of tangible personal property

12   For the purposes of this Act, the lease price of tangible personal property is as follows:

(a) subject to paragraphs (b) to (e), the lease price of the tangible personal property under section 13;

(b) subject to paragraphs (c) to (e), if section 22 (2) [reduced lease price] applies in respect of the lease, the lease price of the tangible personal property under that section;

(c) subject to paragraphs (d) and (e), if section 23 [lease price if coupon accepted] applies in respect of the lease, the lease price of the tangible personal property under that section;

(d) if the tangible personal property is a modified motor vehicle that is leased, at the time the lease is entered into, for a period of one year or more, the lease price of the modified motor vehicle under paragraphs (a) to (c) and (e) less that portion of the price that can reasonably be attributed to those special features or modifications of the vehicle for which the sole purpose is to

(i) facilitate the use of the vehicle by, or the transportation of, an individual using a wheelchair, or

(ii) equip the vehicle with an auxiliary driving control that facilitates the operation of the vehicle by an individual with a disability;

(e) if section 26.2 [lease price if bundled lease] applies in respect of the lease, the lease price of the tangible personal property under that section.

Original lease price of tangible personal property

13   (1) For the purposes of this Act, the lease price of tangible personal property is equal to the total value of the consideration accepted by the person leasing the tangible personal property to the lessee for the right to use the tangible personal property.

(2) Without limiting subsection (1), for the purposes of this Act, the lease price of tangible personal property includes the following:

(a) any payment or consideration or part of a payment or consideration that is, or is expressed to be, a licence fee or royalty fee;

(b) any payment or consideration, in addition to those made for rental periods, by a lessee to a person granting a lease for the right to use the tangible personal property, including a down payment;

(c) any payment or consideration, including a membership fee, that is in addition to payments or consideration for rental periods, a substantial benefit of which is a reduction in the lease price of the tangible personal property;

(d) any payment or consideration, or part of a payment or consideration, that is based or calculated on a measure of the use made by the lessee of the tangible personal property;

(e) if the tangible personal property is leased outside British Columbia and subsequently brought or sent into or received in British Columbia for use in British Columbia, the charges to the lessee for customs, excise, transportation, service and other similar costs incurred by the lessee before the lessee uses the tangible personal property in British Columbia;

(f) in respect of a transaction that is in part a lease of tangible personal property under which the lessee is given the right or authority to exhibit a motion picture to others, the total value of the consideration that

(i) is paid by the lessee to the person with whom the exhibitor entered into the transaction, and

(ii) is not otherwise included under this section in the lease price of the tangible personal property;

(g) any payment or consideration, or part of a payment or consideration, relating to

(i) a warranty made with respect to the tangible personal property, or

(ii) the maintenance of or service to the tangible personal property

that must be paid under the lease and that is not otherwise included under this section in the lease price of the tangible personal property.

(3) If an amount of a payment, consideration or charge referred to in subsection (1) or (2) is not attributable to a rental period under a lease, the amount is to be attributed equally across all rental periods under the lease for the purposes of the following sections:

(a) section 41 [tax if leased property used in British Columbia during rental period];

(b) section 45 [refund for leased property used outside British Columbia];

(c) section 61 [tax if sale and lease-back of conveyance];

(d) section 61.1 [tax if sale and lease-back of conveyance for which tax paid under former Act];

(e) section 62 [tax if leased conveyance used in British Columbia];

(f) section 82.01 [tax if leased property used for new purpose].

Purchase price of software

14   For the purposes of this Act, the purchase price of software is as follows:

(a) subject to paragraphs (b) to (e), the purchase price of the software under section 15;

(b) subject to paragraphs (c) to (e), if section 22 (3) [reduced purchase price] applies in respect of the purchase, the purchase price of the software under that section;

(c) subject to paragraphs (d) and (e), if section 23 [purchase price if coupon accepted] applies in respect of the purchase, the purchase price of the software under that section;

(d) subject to paragraph (e), if section 26 [purchase price if bundled purchase] applies in respect of the software, the purchase price of the software under that section;

(e) if section 16 [purchase price of promotional material acquired or received by promotional distribution] applies in respect of the software, the purchase price of the software under that section.

Original purchase price of software

15   (1) For the purposes of this Act, the purchase price of software is equal to the total value of the consideration accepted by the seller or person from whom the software is acquired as the price or on account of the price of the software.

(2) Without limiting subsection (1), for the purposes of this Act, the purchase price of software includes the following accepted by the seller or person from whom the software is acquired as the price or on account of the price of the software:

(a) a price in money;

(b) the value of services rendered;

(c) the value of the software or tangible personal property exchanged or acquired by the seller or person from whom the software passes as the price or on account of the price of the software covered by the sale;

(c.1) in the case of software that is repossessed, the value of the software;

(d) any charge, including a royalty or licence fee, relating to

(i) the use of the software, or

(ii) the use of knowledge required to use the software,

whether incurred before or after the time that the software is acquired;

(e) any payment or consideration or part of a payment or consideration that is, or is expressed to be, a down payment;

(f) any payment or consideration, including a membership fee, a substantial benefit of which is a reduction in the purchase price of the software;

(g) any payment or consideration, or part of a payment or consideration, that is based or calculated on a measure of the use made of the software;

(h) any charge relating to a warranty made with respect to the software, or any charge relating to the maintenance of or service to the software, that the purchaser must pay or agree to pay in order to obtain the software covered by the sale, whether or not those charges are shown separately on any record of the sale or billed separately.

Purchase price of promotional material in promotional sale

16   (0.1) In this section, "initial price" means the following:

(a) in relation to tangible personal property, the purchase price of the tangible personal property under section 9 (a) to (d.1);

(b) in relation to software, the purchase price of the software under section 14 (a) to (d);

(c) in relation to a telecommunication service, the purchase price of the telecommunication service under section 17 (a) to (d).

(1) For the purposes of this Act, in relation to promotional material that is provided by way of promotional sale by a promotional distributor, the promotional distributor's purchase price of the promotional material is equal to the amount by which the initial price of the promotional material paid by the promotional distributor exceeds the amount of consideration specifically provided for the promotional material by the person to whom that promotional material is provided.

(2) For the purposes of this Act, in relation to promotional material that is received by way of promotional sale, the recipient's purchase price of the promotional material is equal to the amount of any consideration specifically provided for the promotional material by the person to whom that promotional material is provided.

Purchase price of taxable service

17   For the purposes of this Act, the purchase price of a taxable service is as follows:

(a) subject to paragraphs (b) to (e), the purchase price of the taxable service under section 18 [related service], 19 [accommodation], 20 [legal services], 21 [telecommunication service] or 21.1 [online marketplace service];

(b) subject to paragraphs (c) to (e), if section 22 (4) [reduced purchase price] applies in respect of the purchase, the purchase price of the taxable service under that section;

(c) subject to paragraphs (d) and (e), if section 23 [purchase price if coupon accepted] applies in respect of the purchase, the purchase price of the taxable service under that section;

(d) subject to paragraph (e), if section 26 [purchase price if bundled purchase] applies in respect of the taxable service, the purchase price of the taxable service under that section;

(e) if section 16 [purchase price of telecommunication service acquired or received by promotional distribution] applies in respect of the telecommunication service, the purchase price of the telecommunication service under that section.

Original purchase price of related service

18   (1) For the purposes of this Act, the purchase price of a related service is equal to the total value of the consideration accepted by the seller of the related service or person from whom the related service is acquired as the price or on account of the price of the related service.

(2) Without limiting subsection (1), for the purposes of this Act, the purchase price of a related service includes a price in money and the value of services rendered.

Original purchase price of accommodation

19   (1) For the purposes of this Act, the purchase price of accommodation is equal to the total value of the consideration accepted by the seller of the accommodation or person from whom the accommodation is acquired as the price or on account of the price of the accommodation.

(2) Without limiting subsection (1), for the purposes of this Act, the purchase price of accommodation includes the following accepted by the seller of the accommodation or person from whom the accommodation is acquired as the price or on account of the price of the accommodation:

(a) a price in money;

(b) the value of services rendered.

(3) Despite subsection (1), if accommodation is purchased as part of a combination of accommodation, meals and other services purchased for a single price, for the purposes of this Act, the purchase price of the accommodation is the amount attributed to the purchase of the accommodation in accordance with the regulations.

Original purchase price of legal services

20   (1) For the purposes of this Act, the purchase price of legal services is equal to the total value of the consideration provided by the purchaser for the provision of the legal services.

(2) Without limiting subsection (1), for the purposes of this Act, the purchase price of legal services includes

(a) the fees and charges, other than those prescribed as excluded,

(b) disbursements for legal research or secretarial and other support services, and

(c) other prescribed disbursements

that are billed or otherwise charged to a purchaser for or in relation to the legal services.

Original purchase price of telecommunication service

21   (1) For the purposes of this Act, the purchase price of a telecommunication service is equal to the total value of the consideration accepted by the seller or person from whom the telecommunication service is acquired as the price or on account of the price of the telecommunication service.

(2) Without limiting subsection (1), for the purposes of this Act, the purchase price of a telecommunication service includes the following:

(a) sign-up charges;

(b) access charges;

(c) airtime charges;

(d) usage charges;

(e) service charges;

(f) any charge, including a royalty or licence fee, relating to

(i) the use of the telecommunication service, or

(ii) the use of knowledge required to use the telecommunication service,

whether incurred before or after the time that the telecommunication service is acquired;

(g) in respect of a transaction that is in part an acquisition of the right or authority to exhibit a motion picture to others, the total value of the consideration that

(i) is paid to the person with whom the exhibitor entered into the transaction, and

(ii) is not otherwise included under this section in the purchase price of the telecommunication service.

Original purchase price of online marketplace service

21.1   (1) For the purposes of this Act, the purchase price of an online marketplace service is equal to the total value of the consideration accepted by the online marketplace facilitator or person from whom the online marketplace service is acquired as the price or on account of the price of the online marketplace service.

(2) Without limiting subsection (1), the purchase price of an online marketplace service includes the following accepted by the online marketplace facilitator or person from whom the online marketplace service is acquired as the price or on account of the price of the online marketplace service:

(a) a price in money;

(b) the value of services rendered.

Reduced purchase price or lease price

22   (1) If, at or before the time of sale,

(a) a seller offers to a purchaser a reduction in the purchase price of the tangible personal property under section 9 (a), and

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

for the purposes of this Act, the purchase price of the tangible personal property is equal to the purchase price of the tangible personal property under section 9 (a) less the amount of the reduction provided by the seller.

(2) If, at or before the time a lease is entered into,

(a) a person offers to a lessee a reduction in the original lease price of tangible personal property, and

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

for the purposes of this Act, the lease price of the tangible personal property is equal to the original lease price of the tangible personal property less the amount of the reduction provided by the person.

(3) If, at or before the time of sale,

(a) a seller offers to a purchaser a reduction in the original purchase price of software, and

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

for the purposes of this Act, the purchase price of the software is equal to the original purchase price of the software less the amount of the reduction provided by the seller.

(4) If, at or before the time of sale,

(a) a seller offers to a purchaser a reduction in the original purchase price of a taxable service, and

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

for the purposes of this Act, the purchase price of the taxable service is equal to the original purchase price of the taxable service less the amount of the reduction provided by the seller.

Purchase price or lease price if coupon accepted

23   (1) In this section:

"coupon" does not include a gift card or gift certificate;

"initial price" means the following:

(a) in relation to a purchase of tangible personal property, the purchase price of the tangible personal property under section 9 (a) or (b);

(b) in relation to a lease of tangible personal property, the lease price of the tangible personal property under section 12 (a) or (b);

(c) in relation to software, the purchase price of the software under section 14 (a) or (b);

(d) in relation to a taxable service, the purchase price of the taxable service under section 17 (a) or (b).

(2) If a seller or a person leasing tangible personal property to a lessee accepts, as consideration for a purchase or lease of tangible personal property or a purchase of software or a taxable service, a rebate offer or coupon that entitles the purchaser or lessee to a reduction in the price of the purchase or lease of the tangible personal property or the price of the software or taxable service equal to an amount specified in or provided for by the rebate offer or coupon, and the seller or the person leasing tangible personal property can reasonably expect to be paid an amount for the acceptance of the rebate offer or the redemption of the coupon by another person, for the purposes of this Act,

(a) the purchase price of the tangible personal property, software or taxable service is equal to the initial price of the tangible personal property, software or taxable service as if the rebate offer or coupon were not accepted, and

(b) the lease price of the tangible personal property is equal to the initial price for the lease of the tangible personal property as if the rebate offer or coupon were not accepted.

(3) Despite subsection (2), if a seller accepts, as consideration for a purchase of a motor vehicle, a rebate offer or coupon from the manufacturer of the motor vehicle that entitles the purchaser to a reduction in the price of the motor vehicle equal to an amount specified in or provided for by the rebate offer or coupon, for the purposes of this Act, the purchase price of the motor vehicle is equal to the initial price of the motor vehicle less the amount specified in or provided for by the rebate offer or coupon.

(4) If a seller or a person leasing tangible personal property to a lessee accepts, as consideration for a purchase or lease of tangible personal property or a purchase of software or a taxable service, a rebate offer or coupon that entitles the purchaser or lessee to a reduction in the price of the purchase or lease of the tangible personal property or the price of the software or taxable service equal to an amount specified in or provided for by the rebate offer or coupon, and the seller or the person leasing tangible personal property to the lessee can reasonably expect not to be paid an amount for the acceptance of the rebate offer or the redemption of the coupon by another person, for the purposes of this Act,

(a) the purchase price of the tangible personal property, software or taxable service is equal to the initial price of the tangible personal property, software or taxable service less the amount specified in or provided for by the rebate offer or coupon, and

(b) the lease price of the tangible personal property is equal to the initial price of the tangible personal property less the amount specified in or provided for by the rebate offer or coupon.

Purchase price if trade-in allowed on purchase of tangible personal property

24   (1) In this section:

"applicable tax" means a tax imposed in relation to tangible personal property under any of the following:

(a) this Act;

(b) the Consumption Tax Rebate and Transition Act;

(c) the Social Service Tax Act;

(d) section 165 (2), 212.1 or 218.1 or Division IV.1 of Part IX of the Excise Tax Act, in respect of British Columbia as a participating province under Part IX of that Act;

"initial price", in relation to tangible personal property, means the purchase price of the tangible personal property under section 9 (a) to (c).

(2) Subsection (3) does not apply if the tangible personal property sold or the tangible personal property accepted on account of the property sold is a multijurisdictional vehicle.

(3) If, in relation to a sale in British Columbia of tangible personal property, tangible personal property on which the purchaser has previously paid an applicable tax or that was exempt from an applicable tax is accepted at the time of sale by the seller as consideration on account of the price of the tangible personal property sold, for the purposes of this Act, the purchase price of the tangible personal property sold is the amount equal to the initial price of the tangible personal property sold less the amount of the credit allowed for the tangible personal property accepted on account of the price of the tangible personal property sold.

(4) If a motor vehicle on which a person referred to in section 49 (5) [tax if tangible personal property brought into British Columbia for use] has previously paid an applicable tax or that was exempt from an applicable tax is accepted at the time of sale of a motor vehicle to which that section applies by the seller as consideration on account of the price of the motor vehicle sold, for the purposes of section 49 (7.1) or (8), the purchase price of the motor vehicle sold is the amount equal to the initial price of the motor vehicle sold less the amount of the credit allowed for the motor vehicle accepted on account of the price of the motor vehicle sold.

Depreciated purchase price of tangible personal property

25   (1) Subject to subsection (3), this section applies in respect of prescribed tangible personal property that becomes subject to tax under any of the following sections:

(a) section 49 [tax if tangible personal property brought into British Columbia for use];

(a.1) section 50 [tax on registration of vehicle brought into British Columbia];

(b) section 51 [tax if tangible personal property brought into British Columbia for temporary use];

(b.1) section 51.1 [tax if tangible personal property no longer for temporary use];

(c) section 52 [tax if tangible personal property brought into British Columbia by non-residents];

(d) section 63 [tax if conveyance brought into and used in British Columbia];

(e) [Repealed 2013-1-151.]

(f) section 72 [tax if vehicle ceases to be multijurisdictional];

(f.1) section 72.1 [tax if transferred vehicle ceases to be multijurisdictional];

(f.2) section 80.4 [tax if change in use of tangible personal property used to improve real property];

(g) section 82 [tax if property used for new purpose];

(g.1) section 82.1 [tax on parts or material if property containing parts or material used for new purpose];

(g.2) section 82.3 [tax if change in use of vehicle, boat or aircraft exempt from tax under Consumption Tax Rebate and Transition Act];

(h) section 83 [tax if change in use of property acquired for lease];

(i) section 84 [tax if change in use of resulting tangible personal property];

(j) section 85 [tax if change in use of prototype];

(k) section 86 [tax if change in use of property for which refund received under taxation agreement].

(2) For the purposes of this Act, the purchase price of the prescribed tangible personal property to which this section applies is the greater of the following amounts:

(a) the depreciated value, determined in accordance with the regulations, of the prescribed tangible personal property,

(i) in the case of section 49, 50, 51, 52 or 63, on the entry date of the tangible personal property,

(ii) in the case of section 51.1, on the date the tangible personal property is used or allowed to be used in British Columbia for a purpose other than for temporary use,

(iii) in the case of section 72 or 72.1, on the date the vehicle is licensed for use solely within British Columbia,

(iv) in the case of section 80.4, 82, 82.1 or 82.3, on the date the tangible personal property is subsequently used or allowed to be used as referred to in section 80.4 (1) (c), 82 (1) (b), 82.1 (1) (b) or 82.3 (2) (b),

(v) in the case of section 83, on the date the tangible personal property subsequently ceases to be capitalized as lease inventory as referred to in section 83 (1) (b),

(vi) in the case of section 84, on the date the person to whom the section applies first becomes a user of the tangible personal property,

(vii) in the case of section 85, on the earliest of the following dates:

(A) the date the person to whom the section applies first becomes a user of the prototype or copy of the prototype;

(B) the date the consideration for use of the prototype or copy of the prototype is paid;

(C) the date the consideration for use of the prototype or copy of the prototype becomes due, and

(viii) in the case of section 86, on the date the tangible personal property is subsequently used or allowed to be used as referred to in section 86 (1) (b);

(b) 50% of the amount that would be the purchase price of the prescribed tangible personal property but for this section.

(3) This section does not apply if the tangible personal property becomes subject to tax under section 49, 51, 51.1, 52, 63, 72, 72.1, 82, 83, 84, 85 or 86 less than 15 days after the date of purchase.

Purchase price if bundled purchase

26   (1) In this section, "initial price" means the following:

(a) in relation to a taxable component that is tangible personal property, the purchase price of the tangible personal property under section 9 (a) to (d);

(b) in relation to a taxable component that is software, the purchase price of the software under section 14 (a) to (c);

(c) in relation to a taxable component that is a taxable service, the purchase price of the taxable service under section 17 (a) to (c).

(2) Subject to sections 19 (3) and 26.1, this section applies if a taxable component is sold or provided with a non-taxable component for a single price.

(3) Subject to subsections (4) and (6), for the purposes of this Act, the purchase price of a taxable component is equal to the fair market value of the taxable component.

(4) Subject to subsections (4.1) and (6), for the purposes of this Act, the purchase price of a taxable component is equal to the initial price accepted by the seller, or the person from whom the taxable component passes or is acquired, for all the taxable and non-taxable components sold or provided for the single price if

(a) the fair market value of the taxable component is greater than 90% of the single price and the single price is less than $500, or

(b) the non-taxable component is not ordinarily available for sale separate from the taxable component or is not ordinarily provided separate from the taxable component for a price.

(4.1) Subsection (4) (b) does not apply in relation to software if

(a) the software is the only taxable component sold or provided with a non-taxable component for a single price, and

(b) the software is provided

(i) to a purchaser as part of the purchaser's participation in a prescribed program or activity, and

(ii) only to participants of the program or activity by the person offering that program or activity.

(5) Subsection (6) applies in relation to accommodation if

(a) the accommodation is the only taxable component sold or provided with a meal for a single price, and

(b) the meal is the only non-taxable component sold or provided with that accommodation.

(6) For the purposes of this Act, the purchase price of accommodation to which this subsection applies is equal to the amount attributed to the purchase of the accommodation in accordance with the regulations.

Food or other tangible personal property sold with beverages

26.1   (1) This section applies if tangible personal property, including food, is sold with

(a) a soda beverage, or

(b) access to beverages dispensed by a soda fountain, soda gun or similar equipment.

(2) For the purposes of this Act, the purchase price of a beverage referred to in subsection (1) is deemed to be the following, as applicable:

(a) if the seller offers the beverage for sale without the tangible personal property, the lesser of

(i) the ordinary purchase price of that beverage, and

(ii) the total purchase price of the tangible personal property and beverage together;

(b) if the seller offers the beverage for sale only with the tangible personal property, the lesser of

(i) 50% of the total purchase price of the tangible personal property and beverage together, and

(ii) $3.

Lease price if bundled lease

26.2   (1) Subsection (2) applies if taxable tangible personal property is leased, for a single price, together with tangible personal property that is exempt from tax under this Act or real property.

(2) For the purposes of this Act, the lease price of the taxable tangible personal property described in subsection (1) is equal to the fair market value lease price of that taxable tangible personal property.

Valuation by director

27   (1) For the purposes of subsection (2), the director may determine the fair market value of the following:

(a) 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) to which Division 9 [Change in Use] of Part 3 applies;

(b) a lease of tangible personal property;

(c) software

(i) that passes at a sale, or

(ii) that is used in British Columbia;

(iii) [Repealed 2013-1-153.]

(d) a provision of a taxable service.

(2) If the director makes a determination under subsection (1), for the purposes of this Act, other than section 16 (2), and despite any other provision of this Act except sections 211 [appeal to minister] and 212 [appeal to court],

(a) the fair market value of the tangible personal property as determined under subsection (1) (a) of this section is deemed to be the purchase price of the tangible personal property,

(b) the fair market value of the tangible personal property as determined under subsection (1) (b) of this section is deemed to be the lease price of the tangible personal property,

(c) the fair market value of the software as determined under subsection (1) (c) of this section is deemed to be the purchase price of the software, and

(d) the fair market value of the taxable service as determined under subsection (1) (d) of this section is deemed to be the purchase price of the taxable service.

(3) For the purposes of paragraph (m) of the definition of "sale" and paragraph (a) (ix) of the definition of "use", the director may determine whether tangible personal property or a type of tangible personal property has a nominal value.

Part 2 — When Tax Is Payable

When tax is payable in respect of a purchase or lease

28   (1) In this section, "relevant provision" means any of the following:

(a) section 37 [tax on purchase], except in relation to tax imposed under section 37 in accordance with section 88 [tax if leased tangible personal property becomes part of real property];

(b) section 39 [tax on leases];

(c) section 43 [additional tax on lease of passenger vehicle];

(d) section 49 [tax if tangible personal property brought into British Columbia for use];

(e) section 52 [tax if tangible personal property brought into British Columbia by non-residents];

(f) section 80 [tax on tangible personal property used to improve real property if contractor exempt];

(f.1) section 89 [tax on acquisition of eligible tangible personal property];

(g) section 92 [tax on purchase of energy product];

(h) section 93 [tax if energy product brought into British Columbia for use];

(h.1) section 98 (1) [liquor sold under liquor permit];

(i) section 99 (1), (2) or (3) [tax on acquisition of exclusive product by independent sales contractor];

(j) section 101 [tax on reusable containers];

(k) section 105 [tax on software];

(l) [Repealed 2013-1-154.]

(l.1) section 112 [tax on purchase of software by small seller];

(m) section 116 [tax if contract for property conversion related to purchase];

(n) section 117 [tax if contract for modification of purchased property];

(o) section 119 [tax on purchase of related service provided in British Columbia];

(p) section 122 [tax on accommodation];

(q) section 123 [tax on accommodation in designated accommodation area];

(r) section 126 [tax if legal services provided in British Columbia];

(s) section 127 [tax if legal services provided to British Columbia resident];

(t) section 130 [tax on telecommunication service];

(u) section 131 [tax on dedicated telecommunication service];

(v) section 134.3 [tax if online marketplace service provided in British Columbia].

(2) Subject to sections 29, 30 and 30.1, this section applies to tax imposed under a relevant provision.

(3) Tax imposed under a relevant provision is payable on the earlier of

(a) the day the consideration for the purchase or lease of tangible personal property or for the purchase of the software or taxable service is paid, and

(b) the day the consideration for the purchase or lease of tangible personal property or for the purchase of the software or taxable service becomes due.

(4) Despite subsection (3), if the consideration for a purchase or lease of tangible personal property or for a purchase of software or a taxable service is paid or becomes due on more than one day,

(a) tax under a relevant provision in respect of the purchase or lease of the tangible personal property or the purchase of the software or taxable service is payable on each day that is the earlier of the day a portion of the consideration is paid and the day that portion becomes due, and

(b) the tax that is payable on each day under paragraph (a) is to be calculated on the portion of the purchase price or lease price that is attributable to the portion of the consideration that is paid or becomes due, as applicable, on that day.

(5) Despite subsections (3) and (4), if all or any portion of the consideration for a purchase of tangible personal property has neither been paid nor become due on or before the last day of the month immediately following the first month in which,

(a) in relation to a purchase of tangible personal property by way of sale, other than a purchase described in paragraph (b), the ownership or possession of the tangible personal property is transferred to the purchaser, or

(b) in relation to a purchase of tangible personal property by way of sale under which the seller delivers the tangible personal property to the purchaser on approval, consignment, sale-or-return basis or other similar terms, the purchaser acquires ownership of the tangible personal property or makes the tangible personal property available to any person, other than the seller,

tax under a relevant provision in respect of the purchase of the tangible personal property, calculated on the value of that consideration or portion, as applicable, is payable on that day.

(6) Subsection (5) does not apply in respect of a purchase of tangible personal property if the tangible personal property is delivered or made available to the purchaser on a continuous basis by means of a wire, pipeline or other conduit and the seller invoices the purchaser in respect of that purchase on a regular or periodic basis.

(7) If under subsection (5) tax is payable on a day and the purchase price, or any portion of the purchase price, for the purchase of the tangible personal property is not ascertainable on that day,

(a) tax calculated on the purchase price or portion, as applicable, that is ascertainable on that day is payable on that day, and

(b) tax calculated on the purchase price or portion, as applicable, that is not ascertainable on that day is payable on the day the purchase price or portion becomes ascertainable.

(8) Despite subsections (3) to (5) and (7), if a purchaser or lessee of tangible personal property or a purchaser of software or a taxable service retains, under

(a) a law of Canada, British Columbia or another province, or

(b) an agreement in writing for the construction, renovation, alteration or repair of any real property or any ship or other marine vessel,

a portion of the consideration for the purchase or lease of the tangible personal property or the purchase of the software or taxable service pending full and satisfactory performance, or any part thereof, tax under a relevant provision, calculated on the purchase price or lease price that is attributable to that portion of the consideration, is payable on the earlier of the day that portion of that consideration is paid and the day that portion of that consideration becomes payable.

(9) Subject to subsection (10), for the purposes of this section, a deposit, whether refundable or not, given in respect of a purchase or lease of tangible personal property or a purchase of software or a taxable service is not consideration paid for the purchase or lease of the tangible personal property or the purchase of the software or taxable service unless and until the seller or lessor applies the deposit as consideration for that purchase or lease.

(10) For the purposes of this section, a deposit, whether refundable or not, given in respect of a purchase of a reusable container is not consideration paid for the purchase of the reusable container.

When tax is payable if tax not collected when consideration is paid or becomes due

29   (1) In this section, "relevant provision" has the same meaning as in section 28.

(2) Subject to section 30, if a person must pay tax imposed under a relevant provision and the tax is not levied in accordance with section 179 (1) [collection and remittance of tax by collector],

(a) the person who must pay the tax must file a taxpayer return with the director, and

(b) subject to subsection (3), the tax is payable on the last day of the month after the month in which the tax would otherwise be payable under section 28.

(3) If subsection (2) applies to a person who must pay tax imposed under section 49 [tax if tangible personal property brought into British Columbia for use], 52 [tax if tangible personal property brought into British Columbia by non-residents], 93 [tax if energy product brought into British Columbia for use] or 101 (2) [tax on reusable containers], the tax payable under section 49, 52, 93 or 101 (2) must be paid on or before the last day of the month after the month that includes the entry date of that tangible personal property.

(4) Despite subsections (2) and (3) but subject to section 30, if a registrant must pay tax imposed under a relevant provision and the tax is not levied in accordance with section 179 (1), the tax is payable on or before the prescribed date.

(5) Subject to section 30 (5), tax payable under a relevant provision by a registrant must be paid in the prescribed manner if the tax is not levied in accordance with section 179.

When tax is payable in respect of vehicles

30   (1) Subsection (1.1) applies in relation to tax imposed in respect of a vehicle under

(a) section 37 [tax on purchase], 49 [tax if tangible personal property brought into British Columbia for use] or 52 [tax if tangible personal property brought into British Columbia by non-residents] if the tax is not levied in accordance with section 179 (1) [collection and remittance of tax by collector], or

(b) section 100 (1) [tax on gift of vehicle, boat or aircraft given in British Columbia] if the tax is not levied in accordance with section 179 (1.3).

(1.1) Tax imposed in respect of a vehicle to which this subsection applies is payable at or before, or on or before, the earliest of the following:

(a) the time that an application is made for the registration of the vehicle under the vehicle registration legislation;

(b) if the tax is payable by a person who is not a registrant, the last day of the month after the month,

(i) in the case of section 37, in which the vehicle is purchased at a sale in British Columbia,

(ii) in the case of section 49 or 52, that includes the entry date of the vehicle, and

(iii) in the case of section 100 (1), in which the person receives the gift of the vehicle;

(c) if the tax is payable by a registrant, on or before the prescribed date.

(2) Tax imposed under section 40 [tax on motor vehicle leased outside British Columbia and registered for use in British Columbia], 50 [tax on registration of vehicle brought into British Columbia] or 100 (1.3) [tax on gift of vehicle, boat or aircraft given in British Columbia] is payable at the time that an application is made for the registration of the vehicle under the vehicle registration legislation.

(3) If a person must pay tax imposed under section 37, 40, 49, 50, 52 or 100 in respect of a vehicle and, under subsection (1.1) (a) or (2) of this section, the tax is payable at the time that an application is made for the registration of the vehicle under the vehicle registration legislation, the person must

(a) pay the tax to the Insurance Corporation of British Columbia, and

(b) provide to the Insurance Corporation of British Columbia information in a form acceptable to the director.

(4) If a person must pay tax imposed under section 37, 49, 52 or 100 in respect of a vehicle and the tax is payable in accordance with subsection (1.1) (b) of this section, the person must file a taxpayer return with the director.

(5) Tax payable under section 37, 49, 52 or 100 (1) by a registrant must be paid in the prescribed manner if the tax is not levied in accordance with section 179.

(6) Subsection (7) applies in relation to a person who must pay tax imposed under section 37, 49, 50, 52 or 100 in respect of a vehicle if the person alleges

(a) that the tax has been levied in accordance with section 179 in respect of the vehicle,

(b) that the tax has been paid in accordance with subsection (1.1) (b) of this section, or

(c) that the person is exempt from paying tax imposed under those sections.

(7) If this subsection applies in relation to a person described in subsection (6), the person must nevertheless pay tax imposed under section 37, 49, 50, 52 or 100 and the Insurance Corporation of British Columbia must nevertheless levy and collect the tax unless the Insurance Corporation of British Columbia obtains from that person, at or before the time the tax is payable,

(a) a declaration in a form acceptable to the director, if required by the regulations,

(b) any information or document required by the regulations, and

(c) any information or document required by the director.

When tax is payable in respect of promotional material

30.1   (1) If a collector sells tangible personal property, software or a telecommunication service to a person who alleges that the tangible personal property, software or telecommunication service will be used for promotional sale, the person must pay tax under section 37 (1), 92 (1), 105 (1), 130 (1) or 131 (1), as applicable, and the collector must levy and collect the tax under that section unless the collector obtains, at or before the time the tax is payable,

(a) that person's registration number, or

(b) if that person does not have a registration number, a declaration in a form acceptable to the director from that person.

(2) If a collector causes tangible personal property to be delivered to a person in British Columbia who alleges that the tangible personal property will be used for promotional sale, the person must pay tax under section 49 (5), 52 (4) or 93 (3), as applicable, and the collector must levy and collect the tax under that section unless the collector obtains, at or before the time tax is payable,

(a) that person's registration number, or

(b) if that person does not have a registration number, a declaration in a form acceptable to the director from that person.

(3) If a promotional distributor must pay tax in respect of promotional material and, in accordance with subsection (1) or (2), the tax is not required to be levied and collected, the tax imposed is payable on or before the earliest of the following:

(a) if the tax is payable by a promotional distributor who is not a registrant, the last day of the month after the month in which the promotional distributor provides, by way of promotional distribution, the promotional material to another person;

(b) if the tax is payable by a promotional distributor who is a registrant, on or before the prescribed date.

(4) If a promotional distributor who is not a registrant must pay tax in respect of promotional material purchased for promotional sale and, in accordance with subsection (1) or (2), the tax is not required to be levied and collected, the promotional distributor must file a taxpayer return with the director.

(5) If a promotional distributor who is a registrant must pay tax in respect of promotional material purchased for promotional sale and, in accordance with subsection (1) or (2), the tax is not required to be levied and collected, the promotional distributor must pay the tax in the prescribed manner.

When tax is payable in respect of gifts of vehicles, boats or aircraft

31   (1) Subject to subsection (2) and section 30, if a collector gives a gift of a vehicle, boat or aircraft and the person who receives the gift must pay tax imposed under section 100 (1) in respect of that gift, the tax is payable at the time the person receives the gift.

(2) If a person must pay tax imposed under section 100 in respect of a gift of a boat or aircraft and the tax is not levied in accordance with section 179 (1.3) [collection and remittance of tax by collector],

(a) the tax is payable on the last day of the month after the month in which the person receives the gift of the boat or aircraft, and

(b) the person must file a taxpayer return with the director.

(3) Despite subsection (2), tax payable under section 100 by a registrant in respect of a gift of a boat or aircraft must be paid on or before the prescribed date and in the prescribed manner.

Tax payment agreements in relation to tangible personal property and software

32   (1) The director may, in the circumstances established by the regulations,

(a) enter into an agreement with a person who is liable to pay tax imposed under Part 3 [Taxes in Relation to Tangible Personal Property] or Part 4 [Taxes in Relation to Software], relating to the manner in which the tax is to be paid to the government, or

(b) enter into an agreement with a person

(i) who owns or operates a commercial rail service that offers, to members of the public for a fee, interprovincial or international rail transportation of passengers or goods, and

(ii) who is liable to pay tax imposed under

(A) section 116 [tax if contract for property conversion related to purchase],

(B) section 117 [tax if contract for modification of purchased property], or

(C) Division 2 [Related Services in Relation to Tangible Personal Property] of Part 5,

relating to the manner in which the tax is to be paid to the government.

(2) An agreement referred to in subsection (1) is subject to subsection (7) and the conditions established in the regulations.

(3) An agreement referred to in subsection (1) must provide for the types of tangible personal property, software or eligible taxable service to which the agreement applies and must provide for one or both of the following:

(a) subject to the regulations, the circumstances in which the person liable to pay tax must pay the tax directly to the government, instead of paying the tax to a collector in relation to

(i) a delivery in British Columbia, or a purchase or lease, of tangible personal property to which the agreement applies, or

(ii) a purchase of software or an eligible taxable service to which the agreement applies;

(b) the circumstances in which the person liable to pay tax must pay the tax on or before a date that is different from the date that the tax would otherwise be payable under this Act.

(4) Despite anything in this Act, an agreement referred to in subsection (1) may provide for the following:

(a) for the manner in which interest is calculated;

(b) for payments that are based on formulas or estimates referred to in the agreement;

(c) for such other terms and conditions that the director considers necessary or advisable for the efficient administration of this Act.

(5) If an agreement referred to in subsection (1) is entered into, despite anything in this Act but subject to the regulations and to the agreement, the person liable to pay tax must pay the tax, on or before the prescribed date and in the prescribed manner, directly to the government in relation to the tangible personal property, software or eligible taxable service to which the agreement applies.

(6) If an agreement referred to in subsection (1) is entered into, subject to the regulations, the collector is relieved of the obligation to levy and collect the tax.

(7) The director may terminate the agreement referred to in subsection (1) if the director is satisfied that the person who entered into the agreement with the director has failed to comply with this Act, the regulations or a term or condition of the agreement.

When consideration becomes due

33   (1) For the purposes of this Act, all or a portion of the consideration for a purchase or lease of tangible personal property or for a purchase of software or a taxable service becomes due on the earliest of the following:

(a) the earlier of

(i) the day the seller of the tangible personal property, software or taxable service, or the person from whom the tangible personal property is leased, first issues an invoice in respect of the sale or lease for that consideration or portion of that consideration, and

(ii) the date of the invoice;

(b) the day the seller of the tangible personal property, software or taxable service, or the person from whom the tangible personal property is leased, would have, but for an undue delay, issued an invoice in respect of the sale or lease for that consideration or portion of that consideration;

(c) the day the purchaser or lessee is required under a written agreement to pay that consideration or portion of that consideration to the seller of the tangible personal property, software or taxable service or to the person from whom the tangible personal property is leased.

(2) Despite subsection (1), if tangible personal property, software or a taxable service is supplied by means of a lease, licence or similar arrangement under a written agreement, for the purposes of this Act, all or a portion of the consideration for the property, software or service becomes due on the day the purchaser or lessee is required under the agreement to pay the consideration or portion of the consideration to the seller or the person from whom the tangible personal property is leased.

(3) For the purposes of this Act, if consideration that is not money is given or required to be given,

(a) the consideration that is given is deemed to be paid, and

(b) the consideration that is required to be given is deemed to be required to be paid.

Part 3 — Taxes in Relation to Tangible Personal Property

Division 1 — Rates of Tax

Rates of tax in relation to purchase price

34   (1) Subject to this section, the rate of tax payable under sections 37, 49 (6) (a), 51 (6), 52, 80, 80.3 to 80.6, 81 to 84, 85 and 86 on tangible personal property is 7% of the purchase price of the tangible personal property.

(2) The rate of tax payable under sections 37, 49 (6) (a), 51 (6), 52, 81, 82, 82.2, 84 and 86 on liquor is 10% of the purchase price of the liquor.

(3) Subject to subsections (3.1), (5), (6) and (6.1), the rate of tax payable under sections 37, 49 (6) (a), 50 (2) (a), 51 (6), 52, 81, 82, 82.2, 82.3, 83, 84, 85 and 86 on a vehicle, boat or aircraft is 12% of the purchase price of the vehicle, boat or aircraft.

(3.1) Subject to subsections (5), (6) and (6.1), the rate of tax payable under sections 37, 49 (6) (a), 50 (2) (a), 51 (6), 52, 81, 82, 82.2, 82.3, 83, 84, 85 and 86 on a passenger vehicle is as follows:

(a) 12% of the purchase price of the passenger vehicle, if the original purchase price is less than $125 000;

(b) 15% of the purchase price of the passenger vehicle, if the original purchase price is $125 000 or more but less than $150 000;

(c) 20% of the purchase price of the passenger vehicle, if the original purchase price is $150 000 or more.

(4) Subsections (5), (6) and (6.1) apply in relation to a vehicle, boat or aircraft if the person who must pay tax under the applicable section on the vehicle, boat or aircraft, or another person referred to in section 49 (1) (b),

(a) acquired the vehicle, boat or aircraft at a sale in Canada that is a taxable supply under Part IX [Goods and Services Tax] of the Excise Tax Act by a registrant,

(b) imported the vehicle, boat or aircraft from outside Canada, or

(c) acquired the vehicle, boat or aircraft in prescribed circumstances.

(5) Subject to subsections (6) and (6.1), the rate of tax payable under sections 37, 49 (6) (a), 50 (2) (a), 51 (6), 52 and 81 to 86 on a vehicle, boat or aircraft is 7% of the purchase price of the vehicle, boat or aircraft.

(6) The rate of tax payable under sections 37, 49 (6) (a), 50 (2) (a), 51 (6), 52 and 81 to 86 on a passenger vehicle, other than a passenger vehicle that is a zero-emission vehicle, is as follows:

(a) 7% of the purchase price of the passenger vehicle, if the original purchase price is less than $55 000;

(b) 8% of the purchase price of the passenger vehicle, if the original purchase price is $55 000 or more but less than $56 000;

(c) 9% of the purchase price of the passenger vehicle, if the original purchase price is $56 000 or more but less than $57 000;

(d) 10% of the purchase price of the passenger vehicle, if the original purchase price is $57 000 or more but less than $125 000;

(e) 15% of the purchase price of the passenger vehicle, if the original purchase price is $125 000 or more but less than $150 000;

(f) 20% of the purchase price of the passenger vehicle, if the original purchase price is $150 000 or more.

(6.1) The rate of tax payable under sections 37, 49 (6) (a), 50 (2) (a), 51 (6), 52 and 81 to 86 on a passenger vehicle that is a zero-emission vehicle is as follows:

(a) 7% of the purchase price of the zero-emission vehicle, if the original purchase price is less than $75 000;

(b) 8% of the purchase price of the zero-emission vehicle, if the original purchase price is $75 000 or more but less than $76 000;

(c) 9% of the purchase price of the zero-emission vehicle, if the original purchase price is $76 000 or more but less than $77 000;

(d) 10% of the purchase price of the zero-emission vehicle, if the original purchase price is $77 000 or more but less than $125 000;

(e) 15% of the purchase price of the zero-emission vehicle, if the original purchase price is $125 000 or more but less than $150 000;

(f) 20% of the purchase price of the zero-emission vehicle, if the original purchase price is $150 000 or more.

(7) The rate of tax payable under sections 37, 49 (6) (a), 51 (6), 52, 80, 80.3 to 80.6 and 82.2 on a manufactured mobile home is 7% of the amount equal to 50% of the purchase price of the manufactured mobile home.

(8) The rate of tax payable under sections 37, 49 (6) (a), 51 (6), 52, 80, 80.3 to 80.6 and 82.2 on a manufactured modular home is 7% of the amount equal to 55% of the purchase price of the manufactured modular home.

(8.1) The rate of tax payable under sections 37, 49 (6) (a), 51 (6), 52 and 82.2 on a portable building is 7% of the amount equal to 45% of the purchase price of the portable building.

(9) Subsections (7) to (8.1) do not apply to the following:

(a) free-standing appliances, free-standing furniture and draperies sold with a manufactured building;

(b) repair parts purchased for a manufactured building;

(c) related services provided in respect of a manufactured building.

(10) [Repealed 2017-12-71.]

(11) The rate of tax payable under sections 37, 49 (6) (a), 51 (6), 52, 81, 82, 82.01, 82.1, 82.2, 83, 84, 85 and 86 on a vapour product is 20% of the purchase price of the vapour product.

(12) The rate of tax payable under sections 37, 49 (6) (a), 51 (6), 52, 80, 80.3 to 80.6, 81 to 82.2, 83, 84, 85 and 86 on a fossil fuel combustion system is 12% of the purchase price of the fossil fuel combustion system.

Rates of tax in relation to lease price

35   (1) In this section, "tax rate value",

(a) in relation to a passenger vehicle other than a modified business vehicle or, subject to subsection (1.1), a modified motor vehicle, means, for so long as the lessor remains the owner of the passenger vehicle, the fair market value of the passenger vehicle on the first date on which the lessor leases the passenger vehicle to any person,

(b) in relation to a modified business vehicle, means, for so long as the lessor remains the owner of the modified business vehicle, the fair market value of the modified business vehicle on the first date on which the lessor leases the modified business vehicle to any person less the portion of that fair market value that can reasonably be attributed to the modifications referred to in paragraph (b) of the definition of "modified business vehicle", and

(c) subject to subsection (1.1), in relation to a modified motor vehicle that is a passenger vehicle, means, for so long as the lessor remains the owner of the modified motor vehicle, the fair market value of the modified motor vehicle on the first date on which the lessor leases the modified motor vehicle to any person less the portion of that fair market value that can reasonably be attributed to those special features or modifications of the vehicle for which the sole purpose is to

(i) facilitate the use of the vehicle by, or the transportation of, an individual using a wheelchair, or

(ii) equip the vehicle with an auxiliary driving control that facilitates the operation of the vehicle by an individual with a disability.

(1.1) If a modified motor vehicle that is a passenger vehicle is leased to a person, at the time the lease is entered into, for a period of less than one year, for the purposes of this section the tax rate value in respect of that lease of the vehicle must be determined as if the vehicle were not a modified motor vehicle.

(2) Subject to this section, the rate of tax payable under sections 39 [tax on leases], 41 [tax if leased property used in British Columbia during rental period], 82.01 [tax if leased property used for new purpose] and 102 [tax on leased property occasionally supplied with operator] on tangible personal property is 7% of the lease price of the tangible personal property.

(3) The rate of tax payable under sections 39, 41, 82.01 and 102 on a passenger vehicle, other than a passenger vehicle that is a zero-emission vehicle, is as follows:

(a) 7% of the lease price, if the tax rate value of the passenger vehicle is less than $55 000;

(b) 8% of the lease price, if the tax rate value of the passenger vehicle is $55 000 or more but less than $56 000;

(c) 9% of the lease price, if the tax rate value of the passenger vehicle is $56 000 or more but less than $57 000;

(d) 10% of the lease price, if the tax rate value of the passenger vehicle is $57 000 or more but less than $125 000;

(e) 15% of the lease price, if the tax rate value of the passenger vehicle is $125 000 or more but less than $150 000;

(f) 20% of the lease price, if the tax rate value of the passenger vehicle is $150 000 or more.

(3.1) The rate of tax payable under sections 39, 41, 82.01 and 102 on a passenger vehicle that is a zero-emission vehicle is as follows:

(a) 7% of the lease price, if the tax rate value of the zero-emission vehicle is less than $75 000;

(b) 8% of the lease price, if the tax rate value of the zero-emission vehicle is $75 000 or more but less than $76 000;

(c) 9% of the lease price, if the tax rate value of the zero-emission vehicle is $76 000 or more but less than $77 000;

(d) 10% of the lease price, if the tax rate value of the zero-emission vehicle is $77 000 or more but less than $125 000;

(e) 15% of the lease price, if the tax rate value of the zero-emission vehicle is $125 000 or more but less than $150 000;

(f) 20% of the lease price, if the tax rate value of the zero-emission vehicle is $150 000 or more.

(4) The rate of tax payable under sections 39, 41 and 82.01 on a manufactured mobile home is 7% of the amount equal to 50% of the lease price of the manufactured mobile home.

(5) The rate of tax payable under sections 39, 41 and 82.01 on a manufactured modular home is 7% of the amount equal to 55% of the lease price of the manufactured modular home.

(6) The rate of tax payable under sections 39, 41 and 82.01 on a portable building is 7% of the amount equal to 45% of the lease price of the portable building.

(7) Subsections (4) to (6) do not apply to the following:

(a) free-standing appliances, free-standing furniture and draperies leased with a manufactured building;

(b) repair parts leased for a manufactured building.

(8) The rate of tax payable under sections 39, 41 and 82.01 on a vapour product is 20% of the lease price of the vapour product.

(9) The rate of tax payable under sections 39, 41, 82.01 and 102 on a fossil fuel combustion system is 12% of the lease price of the fossil fuel combustion system.

Rates of tax in relation to gifts

36   (1) Subject to this section, the rate of tax payable under section 49 (6) (c) is 7% of the fair market value of the tangible personal property on the entry date of the property.

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

(3) Subject to subsections (3.1), (5), (6) and (6.1), the rate of tax payable under sections 49 (6) (c) and 50 (2) (b) on a vehicle, boat or aircraft is 12% of the fair market value of the vehicle, boat or aircraft on the entry date of the vehicle, boat or aircraft.

(3.1) Subject to subsections (5), (6) and (6.1), the rate of tax payable under sections 49 (6) (c) and 50 (2) (b) on a passenger vehicle is as follows:

(a) 12% of the fair market value of the passenger vehicle on the entry date of the passenger vehicle, if the fair market value is less than $125 000;

(b) 15% of the fair market value of the passenger vehicle on the entry date of the passenger vehicle, if the fair market value is $125 000 or more but less than $150 000;

(c) 20% of the fair market value of the passenger vehicle on the entry date of the passenger vehicle, if the fair market value is $150 000 or more.

(4) Subsections (5), (6) and (6.1) apply if

(a) the donor who gave the gift to the person who must pay tax in accordance with section 49 (6) (c) or 50 (2) (b)

(i) is a registrant under Part IX [Goods and Services Tax] of the Excise Tax Act, or

(ii) acquired the vehicle, boat or aircraft in prescribed circumstances, or

(b) the person who must pay tax in accordance with section 49 (6) (c) or 50 (2) (b) imported the vehicle, boat or aircraft from outside Canada.

(5) Subject to subsections (6) and (6.1), the rate of tax payable under sections 49 (6) (c) and 50 (2) (b) on a vehicle, boat or aircraft is 7% of the fair market value of the vehicle, boat or aircraft on the entry date of the vehicle, boat or aircraft.

(6) The rate of tax payable under sections 49 (6) (c) and 50 (2) (b) on a passenger vehicle, other than a passenger vehicle that is a zero-emission vehicle, is as follows:

(a) 7% of the fair market value of the passenger vehicle on the entry date of the passenger vehicle, if the fair market value is less than $55 000;

(b) 8% of the fair market value of the passenger vehicle on the entry date of the passenger vehicle, if the fair market value is $55 000 or more but less than $56 000;

(c) 9% of the fair market value of the passenger vehicle on the entry date of the passenger vehicle, if the fair market value is $56 000 or more but less than $57 000;

(d) 10% of the fair market value of the passenger vehicle on the entry date of the passenger vehicle, if the fair market value is $57 000 or more but less than $125 000;

(e) 15% of the fair market value of the passenger vehicle on the entry date of the passenger vehicle, if the fair market value is $125 000 or more but less than $150 000;

(f) 20% of the fair market value of the passenger vehicle on the entry date of the passenger vehicle, if the fair market value is $150 000 or more.

(6.1) The rate of tax payable under sections 49 (6) (c) and 50 (2) (b) on a passenger vehicle that is a zero-emission vehicle is as follows:

(a) 7% of the fair market value of the zero-emission vehicle on the entry date of the vehicle, if the fair market value is less than $75 000;

(b) 8% of the fair market value of the zero-emission vehicle on the entry date of the vehicle, if the fair market value is $75 000 or more but less than $76 000;

(c) 9% of the fair market value of the zero-emission vehicle on the entry date of the vehicle, if the fair market value is $76 000 or more but less than $77 000;

(d) 10% of the fair market value of the zero-emission vehicle on the entry date of the vehicle, if the fair market value is $77 000 or more but less than $125 000;

(e) 15% of the fair market value of the zero-emission vehicle on the entry date of the vehicle, if the fair market value is $125 000 or more but less than $150 000;

(f) 20% of the fair market value of the zero-emission vehicle on the entry date of the vehicle, if the fair market value is $150 000 or more.

(7) The rate of tax payable under section 49 (6) (c) on a manufactured mobile home is 7% of the amount equal to 50% of the fair market value of the manufactured mobile home on the entry date of the manufactured mobile home.

(8) The rate of tax payable under section 49 (6) (c) on a manufactured modular home is 7% of the amount equal to 55% of the fair market value of the manufactured modular home on the entry date of the manufactured modular home.

(8.1) The rate of tax payable under section 49 (6) (c) on a portable building is 7% of the amount equal to 45% of the fair market value of the portable building on the entry date of the portable building.

(9) Subsections (7) to (8.1) do not apply to the following:

(a) free-standing appliances, free-standing furniture and draperies given as a gift with a manufactured building;

(b) repair parts given as a gift for a manufactured building.

(10) [Repealed 2017-12-73.]

(11) The rate of tax payable under section 49 (6) (c) on a vapour product is 20% of the fair market value of the vapour product on the entry date of the vapour product.

(12) The rate of tax payable under section 49 (6) (c) on a fossil fuel combustion system is 12% of the fair market value of the system on the entry date of the fossil fuel combustion system.

Division 2 — Purchases of Tangible Personal Property

Tax on purchase

37   (1) A purchaser who purchases tangible personal property at a sale in British Columbia must pay to the government tax at the applicable rate under section 34.

(2) Subsection (1) does not apply to the following:

(a) a purchaser of tangible personal property, if the purchaser must pay tax imposed under Division 5 [Property Brought into British Columbia from Outside Canada] in relation to the tangible personal property;

(b) a purchaser of a taxable conveyance, as defined in section 59, if the purchaser must pay tax imposed under section 60 [tax if conveyance purchased in British Columbia for interjurisdictional use] in relation to the taxable conveyance;

(c) a purchaser of a vehicle, if the vehicle is to be immediately licensed in British Columbia as described in section 69 (1) (a) [tax if multijurisdictional vehicle licensed];

(c.1) a purchaser of an exclusive product, if the purchaser must pay tax imposed under section 99 (1) or (2) [tax on acquisition of exclusive product by independent sales contractor] in relation to the exclusive product;

(d) a purchaser of a reusable container, if the purchaser must pay tax imposed under section 101 (1) [tax on reusable containers].

(3) Subject to subsection (7), if a collector sells tangible personal property at a sale in British Columbia to a person who alleges that the tangible personal property is being purchased for resale, the person must nevertheless pay tax under subsection (1) as if the person were a purchaser and the collector must nevertheless levy and collect the tax under subsection (1) unless the collector obtains, at or before the time the tax is payable,

(a) that person's registration number, or

(b) if that person does not have a registration number, a declaration in a form acceptable to the director from that person.

(4) If a collector sells a vehicle at a sale in British Columbia to a person who alleges that the vehicle is to be immediately licensed in British Columbia as described in section 69 (1) (a), the person must nevertheless pay tax under subsection (1) of this section and the collector must nevertheless levy and collect the tax under subsection (1) unless the collector obtains from that person, at or before the time the tax is payable,

(a) the account number assigned by the Insurance Corporation of British Columbia to the person who licenses the vehicle in British Columbia under a licence to which a prorating agreement applies, or

(b) a declaration in a form acceptable to the director.

(5) If a collector sells tangible personal property at a sale in British Columbia to a person who alleges that the person is exempt under section 79 (1) or 80.5 (6) from paying tax under subsection (1) of this section, the person must nevertheless pay tax under subsection (1) and the collector must nevertheless levy and collect the tax under subsection (1) unless the collector obtains, at or before the time the tax is payable,

(a) that person's registration number, or

(b) a declaration in a form acceptable to the director from that person.

(6) If a collector sells tangible personal property at a sale in British Columbia to a person who alleges that the person is exempt under section 80.1 (1) or 80.5 (7) from paying tax under subsection (1) of this section, the person must nevertheless pay tax under subsection (1) and the collector must nevertheless levy and collect the tax under subsection (1) unless the collector obtains, at or before the time the tax is payable,

(a) that person's registration number or, from that person, a declaration in a form acceptable to the director, and

(b) a declaration in a form acceptable to the director and made by the party referred to in section 80.1 (1) (c) or 80.5 (7).

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

(a) the person's registration number, or

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

(8) Subsection (7) does not apply

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

(b) in prescribed circumstances.

Division 3 — Leases of Tangible Personal Property

Application of this Division

38   This Division does not apply in relation to the following:

(a) a conveyance that is subject to tax or is exempt from tax under Division 6 [Conveyances Used Interjurisdictionally];

(b) subject to section 39 (2) and (4), a multijurisdictional vehicle or a vehicle that is to be immediately licensed in British Columbia as described in section 69 (1) (a) [tax if multijurisdictional vehicle licensed].

Tax on leases

39   (1) A lessee of tangible personal property must pay to the government tax at the applicable rate under section 35 [rates of tax in relation to lease price] if one or more of the following apply:

(a) the lessee enters into the lease in British Columbia;

(b) the tangible personal property is located in British Columbia at the time the lessee enters into the lease;

(c) the lessee or any other person referred to in the definition of "lessee" takes or intends to take possession of the tangible personal property in British Columbia;

(d) the lessee or any other person referred to in the definition of "lessee" receives delivery in British Columbia of the leased tangible personal property;

(e) the tangible personal property is a vehicle that is registered for use in British Columbia under the vehicle registration legislation;

(f) the lessee leases the tangible personal property in prescribed circumstances.

(2) Subsection (1) applies in relation to a short term rental vehicle leased to the lessee.

(3) Subsection (1) does not apply to a lessee of tangible personal property if the lessee must pay tax imposed under section 40 in relation to the lease.

(4) If a collector, as lessor, leases a vehicle to a person who alleges that the vehicle is to be immediately licensed in British Columbia as described in section 69 (1) (a), the person must nevertheless pay tax under subsection (1) of this section and the collector must nevertheless levy and collect the tax under subsection (1) unless the collector obtains from that person, at or before the time the tax is payable,

(a) the account number assigned by the Insurance Corporation of British Columbia to the person who licenses the vehicle in British Columbia under a licence to which a prorating agreement applies, or

(b) a declaration in a form acceptable to the director.

Tax on motor vehicle leased outside British Columbia and registered for use in British Columbia

40   (1) In this section, "taxable value", in relation to a motor vehicle, means the fair market value of the motor vehicle on the date the motor vehicle is registered for use in British Columbia under the vehicle registration legislation.

(2) If a lessee of a motor vehicle leases the motor vehicle for a period of more than 28 days from a person who is located outside British Columbia and registers the motor vehicle for use in British Columbia under the vehicle registration legislation, the lessee must pay to the government tax as follows:

(a) if the motor vehicle is not a passenger vehicle, at the rate of 7% of the taxable value of the motor vehicle;

(b) if the motor vehicle is a passenger vehicle, other than a passenger vehicle that is a zero-emission vehicle, at the applicable rate as follows:

(i) 7% of the taxable value, if the taxable value of the passenger vehicle is less than $55 000;

(ii) 8% of the taxable value, if the taxable value of the passenger vehicle is $55 000 or more but less than $56 000;

(iii) 9% of the taxable value, if the taxable value of the passenger vehicle is $56 000 or more but less than $57 000;

(iv) 10% of the taxable value, if the taxable value of the passenger vehicle is $57 000 or more but less than $125 000;

(v) 15% of the taxable value, if the taxable value of the passenger vehicle is $125 000 or more but less than $150 000;

(vi) 20% of the taxable value, if the taxable value of the passenger vehicle is $150 000 or more;

(c) if the motor vehicle is a passenger vehicle that is a zero-emission vehicle, at the applicable rate as follows:

(i) 7% of the taxable value, if the taxable value of the zero-emission vehicle is less than $75 000;

(ii) 8% of the taxable value, if the taxable value of the zero-emission vehicle is $75 000 or more but less than $76 000;

(iii) 9% of the taxable value, if the taxable value of the zero-emission vehicle is $76 000 or more but less than $77 000;

(iv) 10% of the taxable value, if the taxable value of the zero-emission vehicle is $77 000 or more but less than $125 000;

(v) 15% of the taxable value, if the taxable value of the zero-emission vehicle is $125 000 or more but less than $150 000;

(vi) 20% of the taxable value, if the taxable value of the zero-emission vehicle is $150 000 or more.

Tax if leased property used in British Columbia during rental period

41   (1) Subject to subsection (2), this section applies to a lessee of tangible personal property in relation to a rental period under the lease if

(a) the lessee brings or sends into British Columbia the tangible personal property,

(b) the lessee

(i) is a BC resident, or

(ii) uses the tangible personal property in British Columbia in the course of the lessee's business, whether or not the lessee's business is carried on in British Columbia, and

(c) the tangible personal property is for use or is used in British Columbia during the rental period.

(2) This section does not apply to a lessee if the lessee must pay tax imposed under section 39 or 40 in relation to the lease.

(3) A lessee to whom this section applies must pay to the government, in relation to the rental period under the lease, tax on the tangible personal property in the amount determined by the following formula:

amount = rate ×BC usage

total usage
where
rate = the applicable rate under section 35 [rates of tax in relation to lease price];
BC usage = the number of hours the tangible personal property is in British Columbia in the rental period;
total usage = the total number of hours in that rental period.

(3.1) For the purposes of applying the applicable rate under section 35 in relation to the calculation under subsection (3) of this section, the lease price of the tangible personal property is that portion of the lease price that is attributable to the rental period.

(4) Tax payable under subsection (3) must be paid on or before the last day of the month after the month in which the rental period ends.

(5) Despite subsection (4), tax payable under subsection (3) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Tax if balance of lease price becomes due on breach of lease

42   (1) If a lessee breaches a lease that provides for

(a) the lease of tangible personal property that is subject to tax under section 39, and

(b) the payment, on breach of the lease, of some or all of the outstanding balance of the lease price,

the lessee must pay to the government tax at the rate of 7% of the amount of the payment referred to in paragraph (b) of this subsection.

(2) Tax payable under subsection (1) must be paid,

(a) subject to paragraph (b) of this subsection, at the time the payment referred to in subsection (1) (b) becomes due under the terms of the lease, or

(b) if the tax is not levied in accordance with subsection (4), on or before the last day of the month after the month in which the payment referred to in subsection (1) (b) becomes due under the terms of the lease.

(2.1) Despite subsection (2), if the tax under subsection (1) is payable by a registrant and is not levied in accordance with subsection (4), the tax must be paid on or before the prescribed date and in the prescribed manner.

(3) If a person must pay tax under subsection (1) and the tax is payable in accordance with subsection (2) (b), the person must file a taxpayer return with the director.

(4) If the lessor is a collector and the tax under subsection (1) is payable in accordance with subsection (2) (a), the lessor must levy and collect the tax at the time the tax is payable in accordance with that subsection.

Additional tax on lease of passenger vehicle

43   (1) In addition to any tax payable under section 39, a lessee who leases a passenger vehicle must pay to the government, for the raising of revenue for the BC Transportation Financing Authority continued under the Transportation Act, tax at the rate of $1.50 for each day or portion of a day that the lessee leases the vehicle.

(2) Subsection (1) does not apply if the passenger vehicle that is the subject matter of the lease is leased to the lessee for a period of

(a) 8 consecutive hours or less, or

(b) more than 28 consecutive days.

Exemption if lease under sale and lease-back arrangement

44   (1) Tangible personal property is exempt from tax imposed under this Division if

(a) the tangible personal property was sold to the lessor by the lessee under a sale and immediate lease-back arrangement, and

(b) the lessee had, before the sale to the lessor,

(i) paid tax imposed under this Part in respect of the tangible personal property, other than tax imposed under section 51 [tax if tangible personal property brought into British Columbia for temporary use] or Division 6 [Conveyances Used Interjurisdictionally], and for which the lessee has not obtained and is not entitled to obtain a refund under this Act,

(ii) paid tax imposed under the Consumption Tax Rebate and Transition Act or the Social Service Tax Act in respect of the tangible personal property and for which the lessee has not obtained and is not entitled to obtain a refund under those Acts, or

(iii) in respect of the tangible personal property, paid tax imposed under section 165 (2), 212.1 or 218.1 or Division IV.1 of Part IX of the Excise Tax Act, in respect of British Columbia as a participating province under that Act, and for which the lessee has not obtained and is not entitled to obtain a refund, credit or rebate under Part IX of that Act.

(2) If a collector, as lessor, leases tangible personal property to a person who alleges that the person is exempt under subsection (1) from paying tax under this Division, the person must nevertheless pay tax under this Division and the collector must nevertheless levy and collect the tax under this Division unless the collector obtains from that person, at or before the time the tax is payable,

(a) any information or document required by the regulations, and

(b) any information or document required by the director.

Refund for leased property used outside British Columbia

45   (1) If the director is satisfied that

(a) a lessee of tangible personal property paid tax under section 39, and

(b) the tangible personal property was used outside British Columbia during a rental period,

the director must pay a refund to the lessee in accordance with subsection (2).

(2) The amount of a refund under subsection (1) in respect of a rental period under the lease is equal to the amount of tax paid under section 39 that is in respect of the lease price attributable to the rental period less the amount of tax that would have otherwise been payable under section 41 in respect of the rental period if that section had applied to the lessee in respect of the rental period.

(3) This section does not apply in respect of a lease of a motor vehicle registered for use in British Columbia under the vehicle registration legislation.

Refund on motor vehicle leased outside British Columbia

46   On termination or expiration of the lease for a motor vehicle referred to in section 40 (2), or on removal of the motor vehicle from British Columbia for registration outside British Columbia, the director may provide a refund to the lessee in the amount of the difference between the tax paid under section 40 at the time of registering the vehicle less the sum of all taxes that would have otherwise been payable under section 39, 41 or 42.

Division 4 — Tangible Personal Property Brought into British Columbia

Definition

47   In this Division, "calculation year", in relation to tangible personal property, means the following:

(a) the period beginning on the date the property is first brought or sent into, or is delivered in, British Columbia during any year and ending on the day before the first anniversary of that date;

(b) if the property is in British Columbia for a continuous period that is longer than the period referred to in paragraph (a), the period beginning on the day after the immediately preceding calculation year and ending on the day before the first anniversary of that date.

Application of this Division

48   This Division does not apply in relation to the following:

(a) tangible personal property that is subject to tax or is exempt from tax under section 37, 99 (3) or (4) or 101 (2);

(b) tangible personal property, if tax is paid under Division 5 [Property Brought into British Columbia from Outside Canada] in respect of the tangible personal property;

(c) a taxable conveyance, as defined in section 59, that is subject to tax or is exempt from tax under Division 6 [Conveyances Used Interjurisdictionally];

(d) subject to section 49 (9.1), a multijurisdictional vehicle or a vehicle that is to be immediately licensed in British Columbia as described in section 69 (1) (a) [tax if multijurisdictional vehicle licensed].

(e) [Repealed 2013-1-169.]

Tax if tangible personal property brought into British Columbia for use

49   (1) Subject to subsections (2) and (3), this section applies to a person in relation to tangible personal property if

(a) the person is a BC resident who brings or sends into British Columbia, or receives delivery of in British Columbia, tangible personal property, other than tangible personal property that is received as a gift by that person, that is for use or consumption

(i) by the BC resident,

(ii) by another person at the BC resident's expense,

(iii) by a principal for whom the BC resident acts as agent, or

(iv) by another person at the expense of a principal for whom the BC resident acts as agent,

(a.1) the person is a BC resident who brings or sends into British Columbia tangible personal property that the person received as a gift and that is for use or consumption

(i) by the BC resident,

(ii) by another person at the BC resident's expense,

(iii) by a principal for whom the BC resident acts as agent, or

(iv) by another person at the expense of a principal for whom the BC resident acts as agent,

(b) the person is a BC resident and a person who is not a BC resident brings or sends into British Columbia, or receives delivery of in British Columbia, tangible personal property that is for use or consumption

(i) by the BC resident, or

(ii) by the person who is not a BC resident, or by another person, at the BC resident's expense, or

(c) the person

(i) brings or sends into British Columbia, or receives delivery of in British Columbia, the tangible personal property, and

(ii) uses the tangible personal property in British Columbia in the course of the person's business, whether or not the business is carried on in British Columbia.

(2) This section does not apply to a person if

(a) any person referred to in subsection (1) has leased the tangible personal property, as lessee,

(b) the director is satisfied under section 51 (1) that the tangible personal property is brought or sent into British Columbia, or is delivered in British Columbia, for temporary use, or

(c) the person must pay tax imposed under section 51.1 in relation to the tangible personal property.

(3) This section does not apply in relation to tangible personal property that is subject to tax under section 52.

(4) A person is not required to pay tax under this section in respect of a vehicle if a person pays tax under section 50 in respect of the bringing or sending into British Columbia, or the delivery in British Columbia, of the vehicle.

(5) A person to whom this section applies must pay to the government tax at the applicable rate under subsection (6).

(6) The rate of tax payable under subsection (5) is,

(a) subject to paragraphs (b) and (c), the applicable rate under section 34 [rates of tax in relation to purchase price],

(b) subject to paragraph (c), the applicable rate under subsection (7.1) or (8) of this section if subsection (7.1) or (8) applies to the tangible personal property, and

(c) if the tangible personal property that is subject to tax under subsection (5) is brought or sent into British Columbia by a person who received the tangible personal property as a gift, the applicable rate under section 36 [rates of tax in relation to gifts].

(7) Subject to subsection (7.2), subsection (7.1) or (8) applies in relation to a motor vehicle if

(a) the person to whom this section applies purchased the motor vehicle outside British Columbia but in Canada,

(b) that person brought or sent into British Columbia, or received delivery of in British Columbia, that motor vehicle, and

(c) at the time of sale of the motor vehicle to that person, another motor vehicle is accepted by the seller as consideration on account of the price of the motor vehicle sold.

(7.1) Subject to subsections (7.2) and (8), the rate of tax payable under subsection (5) on a motor vehicle to which this subsection applies is as follows:

(a) if the motor vehicle is not a passenger vehicle, at the rate of 12% of the purchase price of the motor vehicle;

(b) if the motor vehicle is a passenger vehicle, at the applicable rate as follows:

(i) 12% of the purchase price of the passenger vehicle, if the original purchase price of the passenger vehicle is less than $125 000;

(ii) 15% of the purchase price of the passenger vehicle, if the original purchase price of the passenger vehicle is $125 000 or more but less than $150 000;

(iii) 20% of the purchase price of the passenger vehicle, if the original purchase price of the passenger vehicle is more than $150 000.

(7.2) In addition to the requirements in subsection (7), subsection (8) applies in relation to a motor vehicle if the person who must pay tax under subsection (5) on the motor vehicle, or another person referred to in subsection (1) (b),

(a) acquired the motor vehicle at a sale in Canada that is a taxable supply by a registrant under Part IX of the Excise Tax Act, or

(b) acquired the motor vehicle in prescribed circumstances.

(8) The rate of tax payable under subsection (5) on a motor vehicle to which this subsection applies is as follows:

(a) if the motor vehicle is not a passenger vehicle, at the rate of 7% of the purchase price of the motor vehicle;

(b) if the motor vehicle is a passenger vehicle, other than a passenger vehicle that is a zero-emission vehicle, at the applicable rate as follows:

(i) 7% of the purchase price of the passenger vehicle, if the original purchase price of the passenger vehicle is less than $55 000;

(ii) 8% of the purchase price of the passenger vehicle, if the original purchase price of the passenger vehicle is $55 000 or more but less than $56 000;

(iii) 9% of the purchase price of the passenger vehicle, if the original purchase price of the passenger vehicle is $56 000 or more but less than $57 000;

(iv) 10% of the purchase price of the passenger vehicle, if the original purchase price of the passenger vehicle is $57 000 or more but less than $125 000;

(v) 15% of the purchase price of the passenger vehicle, if the original purchase price of the passenger vehicle is $125 000 or more but less than $150 000;

(vi) 20% of the purchase price of the passenger vehicle, if the original purchase price of the passenger vehicle is $150 000 or more;

(c) if the motor vehicle is a passenger vehicle that is a zero-emission vehicle, at the applicable rate as follows:

(i) 7% of the purchase price of the zero-emission vehicle, if the original purchase price of the vehicle is less than $75 000;

(ii) 8% of the purchase price of the zero-emission vehicle, if the original purchase price of the vehicle is $75 000 or more but less than $76 000;

(iii) 9% of the purchase price of the zero-emission vehicle, if the original purchase price of the vehicle is $76 000 or more but less than $77 000;

(iv) 10% of the purchase price of the zero-emission vehicle, if the original purchase price of the vehicle is $77 000 or more but less than $125 000;

(v) 15% of the purchase price of the zero-emission vehicle, if the original purchase price of the vehicle is $125 000 or more but less than $150 000;

(vi) 20% of the purchase price of the zero-emission vehicle, if the original purchase price of the vehicle is $150 000 or more.

(9) The amount of tax payable under subsection (5) by a person in relation to tangible personal property brought or sent into British Columbia is reduced by

(a) the amount of tax under this Act, the Consumption Tax Rebate and Transition Act or the Social Service Tax Act that the person previously paid in relation to the tangible personal property and for which the person has not obtained and is not entitled to obtain a refund under those Acts, and

(b) the amount of tax under section 165 (2), 212.1 or 218.1 or Division IV.1 of Part IX of the Excise Tax Act, in respect of British Columbia as a participating province under Part IX of that Act, that the person previously paid in relation to the tangible personal property and for which the person has not obtained and is not entitled to obtain a refund, credit or rebate under Part IX of that Act.

(9.1) If a collector, other than as lessor of a vehicle, causes the vehicle to be delivered in British Columbia to a person who alleges that the vehicle is to be immediately licensed in British Columbia as described in section 69 (1) (a), the person must nevertheless pay tax under subsection (5) of this section and the collector must nevertheless levy and collect the tax under subsection (5) of this section unless the collector obtains from that person, at or before the time the tax is payable,

(a) the account number assigned by the Insurance Corporation of British Columbia to the person who licenses the vehicle in British Columbia under a licence to which a prorating agreement applies, or

(b) a declaration in a form acceptable to the director.

(10) If a collector causes tangible personal property to be delivered in British Columbia to a person who alleges that the person is exempt under section 79 (2) or 80.5 (6) from paying tax under subsection (5) of this section, the person must nevertheless pay tax under subsection (5) and the collector must nevertheless levy and collect the tax under subsection (5) unless the collector obtains, at or before the time the tax is payable,

(a) that person's registration number, or

(b) a declaration in a form acceptable to the director from that person.

(11) If a collector causes tangible personal property to be delivered in British Columbia to a person who alleges that the tangible personal property is being purchased for resale, the person must nevertheless pay tax under subsection (5) as if the person were a person to whom this section applies and the collector must nevertheless levy and collect the tax under subsection (5) unless the collector obtains, at or before the time the tax is payable,

(a) that person's registration number, or

(b) if that person does not have a registration number, a declaration in a form acceptable to the director from that person.

(12) If a collector causes tangible personal property to be delivered in British Columbia to a person who alleges that the person is exempt under section 80.1 (2) or 80.5 (7) from paying tax under subsection (5) of this section, the person must nevertheless pay tax under subsection (5) and the collector must nevertheless levy and collect the tax under subsection (5) unless the collector obtains, at or before the time the tax is payable,

(a) that person's registration number or, from that person, a declaration in a form acceptable to the director, and

(b) a declaration in a form acceptable to the director and made by the party referred to in section 80.1 (2) (c) or 80.5 (7).

Tax on registration of vehicle brought into British Columbia

50   (0.1) In this section, "travel trailer" means a vehicle designed to be

(a) pulled on a highway, and

(b) used as temporary or seasonal accommodation.

(1) This section applies if

(a) a person brought or sent into British Columbia, or received delivery of in British Columbia, a vehicle for use

(i) by the person,

(ii) by another person at the first person's expense,

(iii) by a principal for whom the first person acts as agent, or

(iv) by another person at the expense of a principal for whom the first person acts as agent, and

(b) any of the persons referred to in paragraph (a) register the vehicle under the vehicle registration legislation.

(2) Subject to subsection (3), if this section applies, the person who registers the vehicle must pay to the government tax on the vehicle,

(a) subject to paragraph (b), at the applicable rate under section 34, and

(b) if the tangible personal property that is subject to tax under this section is brought or sent into British Columbia by, or is delivered in British Columbia to, a person who received the tangible personal property as a gift, at the applicable rate under section 36 [rates of tax in relation to gifts].

(3) A person is not required to pay tax under this section in respect of a vehicle if the person has paid tax under section 49, 51.1 or 52 in respect of the vehicle.

(4) A non-resident is exempt from tax imposed under subsection (2) if

(a) the non-resident is an individual,

(b) the tangible personal property is a travel trailer, and

(c) the travel trailer is to be used in British Columbia solely for a non-business purpose.

Tax if tangible personal property brought into British Columbia for temporary use

51   (1) Subject to subsection (2), this section applies to a person in relation to tangible personal property if

(a) section 49 would apply to the person in relation to the tangible personal property if that section were read without reference to subsection (2) (b) of that section, and

(b) the person establishes to the satisfaction of the director that the property is brought or sent into British Columbia, or is delivered in British Columbia, for temporary use.

(2) This section does not apply in respect of the following:

(a) tangible personal property that is brought or sent into, or delivered in, British Columbia for use as a part of any other tangible personal property;

(b) tangible personal property that is brought or sent into British Columbia by, or is delivered in British Columbia to, a person who received the tangible personal property as a gift;

(c) a vehicle that is registered for use in British Columbia.

(3) Subject to subsection (6), a person to whom this section applies must pay to the government tax calculated in accordance with subsection (4) or (9).

(4) Subject to subsection (9), the tax payable under subsection (3) is equal to 1/3 of the tax that would, but for this section, be payable under section 49 by the person in relation to the tangible personal property.

(5) Except in relation to tangible personal property to which subsection (9) applies, tax must be calculated under subsection (4) separately for each calculation year during any part of which the tangible personal property is in British Columbia.

(6) A person is not liable to pay to the government, in relation to the tangible personal property, a total amount of tax under subsection (3) that is in excess of an amount equal to the amount determined in accordance with the following formula:

amount = rate − other sales tax
where
rate = the applicable rate under section 34 [rates of tax in relation to purchase price];
other sales tax = the total of the following:
(a) the tax the person has paid on the property under the Consumption Tax Rebate and Transition Act or the Social Service Tax Act and for which the person has not obtained and is not entitled to obtain a refund under those Acts;
(b) the sales tax the person has paid on the property to another province and for which the person has not obtained and is not entitled to obtain a refund, credit or rebate;
(c) the tax the person has paid on the property under section 165 (2), 212.1 or 218.1 or Division IV.1 of Part IX of the Excise Tax Act and for which the person has not obtained and is not entitled to obtain a refund, credit or rebate under Part IX of that Act.

(7) Except in relation to tangible personal property to which subsection (9) applies, tax payable under subsection (3) must be paid on or before the last day of the month after the month in which the property is first used in British Columbia during the calculation year in respect of which tax is payable.

(8) Subsection (9) applies to tangible personal property referred to in subsection (1) that is

(a) for use in petroleum or natural gas exploration or development, and

(b) one of the following:

(i) a cement truck;

(ii) a fracturing truck;

(iii) a vehicle on which seismic recording equipment or well logging equipment is permanently mounted.

(9) Tax payable under subsection (3) in relation to tangible personal property to which this subsection applies must be

(a) calculated in accordance with the regulations,

(b) calculated under paragraph (a) separately for each prescribed period during any part of which the tangible personal property is in British Columbia, and

(c) paid on or before the prescribed date.

(10) Despite subsections (7) and (9) (c), tax payable under subsection (3) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Tax if tangible personal property no longer for temporary use

51.1   (1) This section applies to a person in relation to tangible personal property if

(a) section 51 applied to the person in relation to the tangible personal property, and

(b) within 3 years after the date on which the tangible personal property is first used in British Columbia and during a calculation year in respect of which tax was payable under section 51, the person uses that property, or allows that property to be used, in British Columbia for a purpose other than for temporary use.

(2) A person to whom this section applies must pay to the government tax in an amount equal to the amount of tax under section 49 that would have otherwise been payable if that section had applied to the person in relation to the tangible personal property less the amount of tax paid by the person under section 51 in respect of the tangible personal property.

(3) If this section applies to a person in relation to tangible personal property that is prescribed for the purposes of section 25 (1), the purchase price to be used for the purposes of subsection (2) in determining the amount of tax under section 49 that would have otherwise been payable in relation to the tangible personal property is to be determined in accordance with section 25 (2) (a) (ii).

(4) Tax payable under subsection (2) must be paid on or before the last day of the month after the month in which the person uses that property, or allows that property to be used, for a purpose other than for temporary use.

(5) Despite subsection (4), tax payable under subsection (2) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Tax if tangible personal property brought into British Columbia by non-residents

52   (1) In this section, "travel trailer" means a vehicle designed to be

(a) pulled on a highway, and

(b) used as temporary or seasonal accommodation.

(2) Subject to subsection (3), this section applies to a non-resident who brings or sends into British Columbia, or who receives delivery of in British Columbia, tangible personal property, if the tangible personal property is, for the year following its entry into British Columbia, to be used or consumed

(a) primarily in British Columbia, and

(b) primarily by one or more of the following:

(i) the non-resident;

(ii) a person for whom the non-resident acts as agent;

(iii) a person whose use or consumption of the tangible personal property is at the expense of the non-resident;

(iv) a person whose use or consumption of the tangible personal property is at the expense of a principal for whom the non-resident acts as agent.

(3) This section does not apply to a non-resident referred to in subsection (1) if

(a) the non-resident has leased, as lessee, the tangible personal property, or

(b) the non-resident must pay tax under section 50 in respect of the vehicle.

(4) A non-resident to whom this section applies must pay to the government tax at the applicable rate under section 34.

(4.1) The amount of tax payable under subsection (4) by a non-resident in relation to tangible personal property brought or sent into British Columbia is reduced by

(a) the amount of tax under this Act, the Consumption Tax Rebate and Transition Act or the Social Service Tax Act that the non-resident previously paid in relation to the tangible personal property and for which the non-resident has not obtained and is not entitled to obtain a refund under those Acts, and

(b) the amount of tax under section 165 (2), 212.1 or 218.1 or Division IV.1 of Part IX of the Excise Tax Act, in respect of British Columbia as a participating province under Part IX of that Act, that the non-resident previously paid in relation to the tangible personal property and for which the non-resident has not obtained and is not entitled to obtain a refund, credit or rebate under Part IX of that Act.

(5) A non-resident is exempt from tax imposed under subsection (4) if

(a) the non-resident is an individual,

(b) the tangible personal property is a boat or travel trailer, and

(c) the boat or travel trailer is to be used in British Columbia solely for a non-business purpose.

Exemption if less than minimum threshold use in British Columbia

53   Tangible personal property is exempt from tax imposed under section 49 or 51 if the tangible personal property is in British Columbia during a calculation year for fewer than a prescribed number of days.

Division 5 — Property Brought into British Columbia from Outside Canada

Application of this Division

54   (1) This Division applies if an agreement entered into under section 191 is in force between the government and the government of Canada or an agent of the government of Canada.

(2) This Division does not apply in relation to the following tangible personal property:

(a) tangible personal property that is subject to tax or is exempt from tax under section 63 [tax if conveyance brought into and used in British Columbia] or Division 7 [Multijurisdictional Vehicles];

(b) goods that are for commercial use;

(c) motor vehicles and trailers that are required to be registered under the Motor Vehicle Act;

(c.1) off-road vehicles that are required to be registered under the Off-Road Vehicle Act;

(d) tangible personal property that is not subject to tax under Division III of Part IX of the Excise Tax Act because the tangible personal property is a good included in section 1 or 7 of Schedule VII of that Act;

(e) prescribed tangible personal property.

Tax if property brought into British Columbia from outside Canada

55   (0.1) In this section, "taxable value", in relation to tangible personal property, means the value of the tangible personal property as determined under section 215 of the Excise Tax Act.

(1) Unless subsection (2) applies, a resident taxpayer who brings tangible personal property into British Columbia from a place outside Canada, or who sends tangible personal property, or enters into an arrangement under which tangible personal property is sent, into British Columbia from a place outside Canada, must, at the time the tangible personal property enters British Columbia,

(a) report the matter to a customs officer,

(b) supply to the customs officer all information required by the customs officer in respect of the tangible personal property, and

(c) pay to the government, by paying to the customs officer as agent of the government, tax at the applicable rate under subsections (3) to (3.4), (3.6) and (3.7).

(2) Subject to subsection (4), a resident taxpayer must, at the time of receiving, through a postal agent, tangible personal property in British Columbia from a place outside Canada,

(a) supply to the postal agent all information required by the postal agent in respect of the tangible personal property, and

(b) pay to the government, by paying to the postal agent as agent of the government, tax at the applicable rate under subsections (3) to (3.4), (3.6) and (3.7).

(3) Subject to subsections (3.1) to (3.4), (3.6) and (3.7), the rate of tax payable under subsections (1) and (2) is 7% of the taxable value of the tangible personal property.

(3.1) The rate of tax payable under subsections (1) and (2) on liquor is 10% of the taxable value of the liquor.

(3.2) The rate of tax payable under subsections (1) and (2) on a manufactured mobile home is 7% of the amount equal to 50% of the taxable value of the manufactured mobile home.

(3.3) The rate of tax payable under subsections (1) and (2) on a manufactured modular home is 7% of the amount equal to 55% of the taxable value of the manufactured modular home.

(3.4) The rate of tax payable under subsections (1) and (2) on a portable building is 7% of the amount equal to 45% of the taxable value of the portable building.

(3.5) Subsections (3.2) to (3.4) do not apply to the following:

(a) free-standing appliances, free-standing furniture and draperies sold with a manufactured building;

(b) repair parts purchased for a manufactured building.

(3.6) The rate of tax payable under subsections (1) and (2) on a vapour product is 20% of the taxable value of the vapour product.

(3.7) The rate of tax payable under subsections (1) and (2) on a fossil fuel combustion system is 12% of the taxable value of the fossil fuel combustion system.

(4) Subsection (2) does not apply unless there is an agreement in force between the Canada Post Corporation and the government of Canada or an agent of the government of Canada providing for the collection of tax under this Division by that corporation.

Detention of tangible personal property

56   (1) If a resident taxpayer fails or refuses to comply with section 55, a collection agent may detain the tangible personal property.

(2) Tangible personal property detained under subsection (1) must be dealt with as follows:

(a) if, within 60 days after the date of the detention, the tax that was payable in respect of the tangible personal property at the time of its detention and any expenses related to the detention are paid and the requirements of section 55 (1) (b) or (2) (a) are met, the tangible personal property must be returned to the resident taxpayer;

(b) if the tax and the expenses relating to the detention are not paid within the period referred to in paragraph (a) of this subsection or the requirements of section 55 (1) (b) or (2) (a) are not met within that period, the tangible personal property is forfeited to the government and may be disposed of as directed by the director.

Tax payable to collection agent even though exemption claimed

57   (1) If a resident taxpayer alleges that tangible personal property is exempt under Part 6 [Exemptions] or under the regulations from tax imposed under this Division, the collection agent, in the circumstances specified in the agreement entered into under section 191, may nevertheless require that the resident taxpayer pay the tax.

(2) If the collection agent requires payment of the tax under subsection (1), the resident taxpayer

(a) must pay the tax to the collection agent, and

(b) may apply to the government of Canada or an agent of the government of Canada for a refund under section 191 (6) (b) of the tax paid in respect of that tangible personal property.

Refund if property brought into British Columbia for temporary use

58   If the director is satisfied that

(a) a resident taxpayer paid tax under section 55 in relation to tangible personal property, and

(b) but for section 48 (b) [application of Division 4], the resident taxpayer would have paid tax under section 51 [tax if tangible personal property brought into British Columbia for temporary use] in relation to the tangible personal property,

the director must refund to the resident taxpayer the amount of tax paid under section 55 less the amount of tax that would have otherwise been payable under section 51.

Division 6 — Conveyances Used Interjurisdictionally

Definitions

59   In this Division:

"aircraft part" means a part of an interjurisdictional aircraft;

"conveyance part" means a part of an interjurisdictional railway rolling stock or a part of an interjurisdictional conveyance;

"eligible flights", in relation to an interjurisdictional aircraft, means flights originating or terminating in British Columbia or connecting 2 or more points in British Columbia;

"interjurisdictional aircraft" means an aircraft used

(a) interprovincially or internationally for commercial purposes, and

(b) in eligible flights;

"interjurisdictional conveyance" means a vessel or any other conveyance, other than an interjurisdictional aircraft or interjurisdictional railway rolling stock, used in interprovincial or international trade for the commercial carriage of passengers or goods;

"interjurisdictional railway rolling stock" means railway rolling stock used interprovincially or internationally;

"taxable conveyance" means the following:

(a) an interjurisdictional aircraft;

(b) an aircraft part;

(c) interjurisdictional railway rolling stock;

(d) an interjurisdictional conveyance;

(e) a conveyance part.

Tax if conveyance purchased in British Columbia for interjurisdictional use

60   (1) This section applies to a person who

(a) purchases at a sale in British Columbia a conveyance and, from the date of purchase,

(i) in the case of an aircraft, uses the aircraft as an interjurisdictional aircraft,

(ii) in the case of railway rolling stock, uses the railway rolling stock as interjurisdictional railway rolling stock, and

(iii) in the case of a vessel or any other conveyance, other than an aircraft or railway rolling stock, uses the conveyance as an interjurisdictional conveyance, or

(b) purchases at a sale in British Columbia a part for a conveyance and, from the date of purchase, the part is to be installed in an interjurisdictional aircraft, interjurisdictional railway rolling stock or an interjurisdictional conveyance.

(2) A person to whom this section applies must pay to the government tax on the taxable conveyance in the amount determined by the following formula:

amount = 7% × purchase price ×BC usage

total usage
where
purchase price = the purchase price of the taxable conveyance;
BC usage = whichever of the following is applicable:
(a)in relation to an interjurisdictional aircraft, the number of hours the aircraft will fly in the airspace over British Columbia in eligible flights during the period beginning on the date of purchase of the aircraft and ending on the third anniversary of that date;
(b)in relation to an aircraft part, the number of hours the aircraft in which the part is or is to be installed will fly in the airspace over British Columbia in eligible flights during,
(i) in the case of a prescribed part, the period beginning on the date of purchase of the prescribed part and ending on the third anniversary of that date, and
(ii) in any other case, the year after the date of purchase of the part;
(c)in relation to interjurisdictional railway rolling stock or an interjurisdictional conveyance, the distance the conveyance will travel, during the year after its date of purchase, in British Columbia or, if the conveyance is a vessel, in the waters of British Columbia;
(d)in relation to a conveyance part, the distance the conveyance in which the part is or is to be installed will travel, during the year after the date of purchase of the part, in British Columbia or, if the conveyance is a vessel, in the waters of British Columbia;
total usage = whichever of the following is applicable:
(a)in relation to an interjurisdictional aircraft, the total number of hours the aircraft will fly during the period referred to in paragraph (a) of the description of "BC usage";
(b)in relation to an aircraft part, the total number of hours the aircraft in which the part is or is to be installed will fly during the period referred to in paragraph (b) of the description of "BC usage";
(c)in relation to interjurisdictional railway rolling stock or an interjurisdictional conveyance, the total distance the conveyance will travel during the year after its date of purchase;
(d)in relation to a conveyance part, the total distance the conveyance in which the part is or is to be installed will travel during the year after the date of purchase of the part.

(3) Tax payable under subsection (2) must be paid on or before the last day of the month after the month in which the person purchased the conveyance or the part for a conveyance.

(4) Despite subsection (3), tax payable under subsection (2) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Tax if sale and lease-back of conveyance

61   (0.1) In this section:

"BC usage" means BC usage within the meaning of section 60, 63 or 64, as applicable;

"lease ratio", in relation to a conveyance for a rental period, means the ratio of the distance of travel by the conveyance in British Columbia or, if the conveyance is a vessel, in the waters of British Columbia during the rental period to the total distance of travel by the conveyance during that period;

"purchase ratio", in relation to a conveyance, means

(a) subject to paragraph (b), the ratio of the BC usage to the total usage that was used to determine the tax payable under section 60, 63 or 64 by a lessee, or

(b) the ratio of the BC usage to the total usage as determined in accordance with section 66 (1) (c) by the lessee;

"total usage" means total usage within the meaning of section 60, 63 or 64, as applicable.

(1) This section applies to a lessee of a conveyance if

(a) the lessee became lessee by selling the conveyance to the lessor under a sale and immediate lease-back arrangement,

(b) the lessee had, before the sale to the lessor, paid

(i) as purchaser of the conveyance the tax applicable under section 60, or

(ii) the tax applicable under section 63 or 64 in relation to the conveyance, and

(c) the conveyance is

(i) interjurisdictional railway rolling stock, or

(ii) an interjurisdictional conveyance.

(2) A lessee to whom this section applies must pay to the government, in respect of a rental period under the lease, tax calculated in accordance with subsection (3), if the lease ratio for the conveyance for the rental period exceeds the purchase ratio for the conveyance.

(3) Tax payable under subsection (2) must be calculated in accordance with the following formula:

tax = 7% × lease price × (lease ratio − purchase ratio)
where
lease price = the lease price of the conveyance attributable to the rental period;
lease ratio = the lease ratio for the conveyance for the rental period;
purchase ratio = the purchase ratio for the conveyance.

(4) For the purposes of the definition of "lease ratio" in subsection (0.1), the distances of travel during a rental period are whichever of the following is applicable:

(a) if the lease price for a rental period is payable at the end of or after the end of the rental period, the actual distances travelled;

(b) in any other case, an estimate made in accordance with section 65 of the distances to be travelled.

(5) Tax payable under subsection (2) must be paid on or before the last day of the month after the month in which the rental period ends.

(6) Despite subsection (5), tax payable under subsection (2) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Tax if sale and lease-back of conveyance for which tax paid under former Act

61.1   (1) In this section:

"initial ratio", in relation to a conveyance, means the ratio of the distance of travel by the conveyance in British Columbia, or, if the conveyance is a vessel, in the waters of British Columbia during the first year

(a) after the date of purchase by the person who became the lessee of the conveyance if the conveyance is purchased in British Columbia, or

(b) after the entry date for the conveyance if the conveyance is not purchased in British Columbia

to the total distance of travel by the conveyance during that first year;

"lease ratio", in relation to a conveyance for a rental period, means the ratio of the distance of travel by the conveyance in British Columbia or, if the conveyance is a vessel, in the waters of British Columbia during the rental period to the total distance of travel by the conveyance during that period.

(2) Subject to subsection (3), this section applies to a lessee of a conveyance if

(a) the lessee became lessee by selling the conveyance to the lessor under a sale and immediate lease-back arrangement,

(b) the lessee had, before the sale to the lessor, paid tax imposed under section 13 [calculation of tax if property is conveyance used interjurisdictionally] or 15 [tax if conveyance purchased in B.C. for interjurisdictional use] of the Social Service Tax Act in respect of the conveyance and for which the lessee has not obtained and is not entitled to obtain a refund under that Act, and

(c) the conveyance is

(i) interjurisdictional railway rolling stock, or

(ii) an interjurisdictional conveyance.

(3) This section does not apply to a lessee of a conveyance if section 61 applies to the lessee in respect of the conveyance.

(4) A lessee to whom this section applies must pay to the government, in respect of a rental period under the lease, tax calculated in accordance with subsection (5), if the lease ratio for the conveyance for the rental period exceeds the initial ratio for the conveyance.

(5) Tax payable under subsection (4) must be calculated in accordance with the following formula

tax = 7% × lease price × (lease ratio − initial ratio)
where
lease price = the lease price of the conveyance attributable to the rental period;
lease ratio = the lease ratio for the conveyance for the rental period;
initial ratio = the initial ratio for the conveyance.

(6) For the purposes of the definition of "lease ratio" in subsection (1), the distances of travel during a rental period are whichever of the following is applicable:

(a) if the lease price for a rental period is payable at the end of or after the end of the rental period, the actual distances travelled;

(b) in any other case, an estimate made in accordance with section 65 of the distances to be travelled.

(7) Tax payable under subsection (4) must be paid on or before the last day of the month after the month in which the rental period ends.

(8) Despite subsection (7), tax payable under subsection (4) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Tax if leased conveyance used in British Columbia

62   (1) Subject to subsection (2), this section applies to the following:

(a) a lessee who

(i) leases, in or outside British Columbia, an aircraft, and

(ii) uses, during a rental period under the lease, the aircraft as an interjurisdictional aircraft;

(b) a lessee who

(i) leases, in or outside British Columbia, any railway rolling stock, and

(ii) uses, during a rental period under the lease, the railway rolling stock as interjurisdictional railway rolling stock;

(c) a lessee who

(i) leases, in or outside British Columbia, a vessel or other conveyance, other than railway rolling stock or an aircraft, and

(ii) uses, during a rental period under the lease, the vessel or other conveyance as an interjurisdictional conveyance.

(2) This section does not apply to a lessee of a conveyance if section 61 or 61.1 applies to the lessee in respect of the conveyance.

(3) A lessee to whom this section applies must pay to the government, in respect of the rental period referred to in subsection (1), tax calculated in accordance with the following formula:

tax = 7% × lease price ×BC usage

total usage
where
lease price = the lease price of the conveyance attributable to the rental period;
BC usage = whichever of the following is applicable:
(a)in relation to an interjurisdictional aircraft, the number of hours the aircraft will fly during the rental period in the airspace over British Columbia in eligible flights;
(b)in relation to interjurisdictional railway rolling stock or an interjurisdictional conveyance, the distance the conveyance will travel, during the rental period, in British Columbia or, if the conveyance is a vessel, in the waters of British Columbia;
total usage = whichever of the following is applicable:
(a)in relation to an interjurisdictional aircraft, the total number of hours the aircraft will fly during that rental period;
(b)in relation to interjurisdictional railway rolling stock or an interjurisdictional conveyance, the total distance the conveyance will travel during that rental period.

(4) For the purpose of calculations under subsection (3), the distances of travel during a rental period are whichever of the following is applicable:

(a) if the lease price for a rental period is payable at the end of or after the end of the rental period, the actual distances travelled;

(b) in any other case, an estimate made in accordance with section 65 of the distances to be travelled.

(5) Tax payable under subsection (3) must be paid on or before the last day of the month after the month in which the rental period ends.

(6) Despite subsection (5), tax payable under subsection (3) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

(7) A conveyance is exempt from tax imposed under this section if

(a) the conveyance was sold to the lessor by the lessee under a sale and immediate lease-back arrangement, and

(b) the lessee had, before the sale to the lessor,

(i) paid tax imposed under section 19 [tax on designated property acquired in British Columbia] or 20 [tax on designated property brought into British Columbia] of the Consumption Tax Rebate and Transition Act in respect of the conveyance and for which the person has not obtained and is not entitled to obtain a refund under that Act, or

(ii) in respect of the conveyance, paid tax imposed under section 165 (2), 212.1 or 218.1 or Division IV.1 of Part IX of the Excise Tax Act, in respect of British Columbia as a participating province under Part IX of that Act, and for which the person has not obtained and is not entitled to obtain a refund, credit or rebate under Part IX of that Act.

Tax if conveyance brought into and used in British Columbia

63   (1) Subject to subsection (2), this section applies to a person in relation to a taxable conveyance if

(a) the person is a BC resident who brings or sends into British Columbia, or receives delivery of in British Columbia, the taxable conveyance and the conveyance is for use

(i) by the BC resident,

(ii) by another person at the BC resident's expense,

(iii) by a principal for whom the BC resident acts as agent, or

(iv) by another person at the expense of a principal for whom the BC resident acts as agent,

(b) the person is a BC resident and a person who is not a BC resident brings or sends into British Columbia, or receives delivery of in British Columbia, the taxable conveyance and the conveyance is for use

(i) by the BC resident, or

(ii) by the person who is not a BC resident, or by another person, at the BC resident's expense, or

(c) the person

(i) brings or sends into British Columbia, or receives delivery of in British Columbia, the taxable conveyance, and

(ii) uses the conveyance in British Columbia in the course of the person's business, whether or not the business is carried on in British Columbia.

(2) This section does not apply to a person if any person referred to in subsection (1) has leased the taxable conveyance, as lessee.

(3) A person to whom this section applies must pay to the government tax on the taxable conveyance in the amount determined by the following formula:

amount = 7% × purchase price ×BC usage

total usage
where
purchase price = the purchase price of the taxable conveyance;
BC usage = whichever of the following is applicable:
(a)in relation to an interjurisdictional aircraft, the number of hours the aircraft will fly in the airspace over British Columbia in eligible flights during the period beginning on the entry date of the aircraft and ending on the third anniversary of that date;
(b)in relation to an aircraft part, the number of hours the aircraft in which the part is or is to be installed will fly in the airspace over British Columbia in eligible flights during,
(i)in the case of a prescribed part, the period beginning on the entry date of the prescribed part and ending on the third anniversary of that date, and
(ii)in any other case, the year after the entry date of the part;
(c)in relation to interjurisdictional railway rolling stock or an interjurisdictional conveyance, the distance the conveyance will travel, during the year after its entry date, in British Columbia or, if the conveyance is a vessel, in the waters of British Columbia;
(d)in relation to a conveyance part, the distance the conveyance in which the part is or is to be installed will travel, during the year after the entry date of the part, in British Columbia or, if the conveyance is a vessel, in the waters of British Columbia;
total usage = whichever of the following is applicable:
(a)in relation to an interjurisdictional aircraft, the total number of hours the aircraft will fly during the period referred to in paragraph (a) of the description of "BC usage";
(b)in relation to an aircraft part, the total number of hours the aircraft in which the part is or is to be installed will fly during the period referred to in paragraph (b) of the description of "BC usage";
(c)in relation to interjurisdictional railway rolling stock or an interjurisdictional conveyance, the total distance the conveyance will travel during the year after its entry date;
(d)in relation to a conveyance part, the total distance the conveyance in which the part is or is to be installed will travel during the year after the entry date of the part.

(4) Tax payable under subsection (3) must be paid on or before the last day of the month after the month that includes the entry date of the taxable conveyance.

(5) Despite subsection (4), tax payable under subsection (3) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Tax if change in use of conveyance acquired for resale

64   (1) This section applies to a person who

(a) purchased in British Columbia, brought or sent into British Columbia or received delivery of in British Columbia a conveyance for resale, becomes, for any period, a user of the conveyance and, from the date on which the person becomes the user,

(i) in the case of an aircraft, uses the aircraft as an interjurisdictional aircraft,

(ii) in the case of railway rolling stock, uses the railway rolling stock as interjurisdictional railway rolling stock, and

(iii) in the case of a vessel or any other conveyance, other than an aircraft or railway rolling stock, uses the vessel or other conveyance as an interjurisdictional conveyance, or

(b) purchased in British Columbia, brought or sent into British Columbia or received delivery of in British Columbia a part for a conveyance for resale, becomes, for any period, a user of a conveyance in which the part is installed and, from the date on which the person becomes the user,

(i) in the case of an aircraft, uses the aircraft as an interjurisdictional aircraft,

(ii) in the case of railway rolling stock, uses the railway rolling stock as interjurisdictional railway rolling stock, and

(iii) in the case of a vessel or any other conveyance, other than an aircraft or railway rolling stock, uses the vessel or other conveyance as an interjurisdictional conveyance.

(2) A person to whom this section applies must pay to the government tax on the taxable conveyance in the amount determined by the following formula:

amount = 7% × purchase price ×BC usage

total usage
where
purchase price = the purchase price of the taxable conveyance;
BC usage = whichever of the following is applicable:
(a)in relation to an interjurisdictional aircraft, the number of hours the aircraft will fly in the airspace over British Columbia in eligible flights during the period beginning on the date the person becomes the user of the aircraft and ending on the third anniversary of that date;
(b)in relation to an aircraft part, the number of hours the aircraft in which the part is or is to be installed will fly in the airspace over British Columbia in eligible flights during,
(i)in the case of a prescribed part, the period beginning on the date the person becomes the user of the prescribed part and ending on the third anniversary of that date, and
(ii)in any other case, the year after the date the person becomes the user of the part;
(c)in relation to interjurisdictional railway rolling stock or an interjurisdictional conveyance, the distance the conveyance will travel, during the year after the date the person becomes the user of the conveyance, in British Columbia or, if the conveyance is a vessel, in the waters of British Columbia;
(d)in relation to a conveyance part, the distance the conveyance in which the part is or is to be installed will travel, during the year after the date the person becomes the user of the conveyance, in British Columbia or, if the conveyance is a vessel, in the waters of British Columbia;
total usage = whichever of the following is applicable:
(a)in relation to an interjurisdictional aircraft, the total number of hours the aircraft will fly during the period referred to in paragraph (a) of the description of "BC usage";
(b)in relation to an aircraft part, the total number of hours the aircraft in which the part is or is to be installed will fly during the period referred to in paragraph (b) of the description of "BC usage";
(c)in relation to interjurisdictional railway rolling stock or an interjurisdictional conveyance, the total distance the conveyance will travel during the year after the date the person becomes the user of the conveyance;
(d)in relation to a conveyance part, the total distance the conveyance in which the part is or is to be installed will travel during the year after the date the person becomes the user of the conveyance.

(3) Tax payable under subsection (2) must be paid on or before the last day of the month after the month in which the person first becomes a user of the taxable conveyance.

(4) Despite subsection (3), tax payable under subsection (2) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Estimate of hours or distance conveyance will travel

65   (1) In this section, "relevant provision" means the following:

(a) sections 60 (2), 62 (3), 63 (3) and 64 (2);

(b) the definition of "lease ratio" in section 61 (0.1);

(c) the definitions of "initial ratio" and "lease ratio" in section 61.1 (1).

(2) For the purposes of the relevant provisions, the following must be based on a reasonable estimate:

(a) the number of hours or the distance a conveyance will travel during the relevant period in the airspace over, in the waters of or in British Columbia;

(b) the total number of hours or the total distance the conveyance will travel during the period referred to in paragraph (a).

Adjustment of tax

66   (1) If, for the purposes of a relevant provision as defined in section 65 (1), an estimate is made under section 65 for a relevant period in relation to a conveyance, at the end of the period the person to whom section 60 (2), 61 (2), 61.1 (4), 62 (3), 63 (3) or 64 (2) applies must determine the following:

(a) the actual number of hours or the actual distance the conveyance travelled during the relevant period in the airspace over, in the waters of or in British Columbia;

(b) the total actual number of hours or the total actual distance the conveyance travelled during that relevant period;

(c) the amount determined by the formula in section 60 (2), 61 (3), 61.1 (5), 62 (3), 63 (3) or 64 (2), using the hours and distance determined under paragraphs (a) and (b) of this subsection instead of the estimated hours and distance.

(1.1) For the purposes of subsection (1), if a conveyance is sold within a relevant period, the relevant period in relation to the conveyance is deemed to end at the time of sale.

(2) If the amount determined under subsection (1) (c) for a relevant period exceeds the amount determined under the applicable section for the relevant period based on the reasonable estimate under section 65, the person to whom the applicable section applies must pay to the government tax equal to the amount of the excess.

(3) Tax payable under subsection (2) must be paid on or before the last day of the month after the month in which the relevant period ends.

(3.1) Despite subsection (3), tax payable under subsection (2) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

(4) If the director is satisfied that the amount determined under the applicable section for a relevant period based on the reasonable estimate under section 65 exceeds the amount determined under subsection (1) (c) of this section for the relevant period, the director must refund to the person to whom the applicable section applies the amount of the excess.

Refund for conveyances used interjurisdictionally

67   If the director is satisfied that

(a) a person has paid tax under section 37 [tax on purchase], 39 [tax on leases] or 49 [tax if tangible personal property brought into British Columbia for use] in respect of a conveyance or a part for a conveyance, and

(b) the person ought to have paid tax under section 60, 62 or 63, as applicable, in respect of the conveyance or part instead of paying tax under section 37, 39 or 49,

the director must refund to that person the difference between the tax paid by the person on the conveyance or part and the tax that ought to have been paid in accordance with this Division.

Division 7 — Multijurisdictional Vehicles

Definitions

68   In this Division:

"acquisition date" means,

(a) in the case of a purchased vehicle, the date on which the vehicle is purchased,

(b) in the case of a leased vehicle, the date on which the lessee first becomes entitled, under the lease, to have access to the vehicle, or

(c) in the case of a vehicle that is a gift, the date the recipient of the gift receives possession of the vehicle;

"acquisition year" means,

(a) in the case of a purchased vehicle, the calendar year in which the vehicle is purchased,

(b) in the case of a leased vehicle, the calendar year in which the lessee first becomes entitled, under the lease, to have access to the vehicle, or

(c) in the case of a vehicle that is a gift, the calendar year in which the recipient of the gift receives possession of the vehicle;

"bus" has the same meaning as in the Motor Vehicle Act;

"fleet licence year", in respect of vehicles licensed as part of a fleet to which a prorating agreement applies, means the period beginning on a fleet licensing date for the fleet vehicles and ending on the day before the anniversary of that fleet licensing date;

"prorating agreement" means an agreement made under section 10 (1) of the Commercial Transport Act;

"travel ratio", in respect of a vehicle, means the travel ratio determined in accordance with the regulations;

"vehicle" does not include a trailer;

"vehicle taxable value" means, in respect of a vehicle

(a) that is purchased for fair market value, the purchase price of the vehicle,

(b) that is a leased vehicle, the greater of the purchase price of the vehicle, as described in the lease, and the fair market value of the vehicle on the vehicle's acquisition date, or

(c) that is acquired for less than fair market value, the fair market value of the vehicle on the vehicle's acquisition date,

and includes any capital expenditure made to the vehicle within 30 days after the vehicle's acquisition date.

Tax if multijurisdictional vehicle licensed

69   (1) The following persons must pay to the government tax, in accordance with this Division, for a vehicle licence period:

(a) a person who licenses a vehicle in British Columbia under a licence to which a prorating agreement applies;

(b) a person who licenses a vehicle outside British Columbia under a licence to which a prorating agreement applies and, in the vehicle licence period, brings or sends that vehicle into British Columbia.

(2) Tax payable under subsection (1) in respect of a vehicle for a vehicle licence period must be calculated in accordance with the following formula:

tax = taxable value × rate × travel ratio × travel months
where
taxable value = the vehicle taxable value;
rate = the tax rate
  (a) established under subsection (3), if the vehicle is not a bus, or
  (b) established under subsection (3.1), if the vehicle is a bus;
travel ratio = the travel ratio for the vehicle;
travel months = the number of whole and partial months in the vehicle licence period at the time that the vehicle is licensed, divided by 12.

(3) In each calendar year in which tax is payable under subsection (1), the tax rate in respect of a vehicle, other than a bus, is the rate shown opposite the applicable calendar year as follows:

Calendar Year Tax Rate
acquisition year3.294%
1st calendar year after the acquisition year2.646%
2nd calendar year after the acquisition year2.177%
3rd calendar year after the acquisition year1.838%
4th calendar year after the acquisition year1.597%
5th calendar year after the acquisition year1.577%
6th calendar year after the acquisition year1.509%
7th calendar year after the acquisition year1.486%
8th calendar year after the acquisition year1.497%
9th and subsequent calendar years after the acquisition year1.533%

(3.1) In each calendar year in which tax is payable under subsection (1), the tax rate in respect of a bus is the rate shown opposite the applicable calendar year as follows:

Calendar Year Tax Rate
acquisition year2.708%
1st calendar year after the acquisition year2.046%
2nd calendar year after the acquisition year1.559%
3rd calendar year after the acquisition year1.200%
4th calendar year after the acquisition year0.940%
5th calendar year after the acquisition year0.816%
6th calendar year after the acquisition year0.674%
7th calendar year after the acquisition year0.570%
8th calendar year after the acquisition year0.564%
9th and subsequent calendar years after the acquisition year0.506%

(4) [Repealed 2015-9-48.]

When tax under section 69 must be paid

70   (1) Tax payable under section 69 (1) for a vehicle licence period in respect of a vehicle must be paid as follows:

(a) if the vehicle is licensed in British Columbia, the tax must be paid to the government, by paying the tax to the Insurance Corporation of British Columbia, at the time that the vehicle is licensed for that vehicle licence period;

(b) in any other case, unless paid earlier under subsection (2), the tax must be paid to the government on or before the last day of the month after the month in which the vehicle first enters British Columbia in that vehicle licence period.

(2) If the vehicle in respect of which tax is payable under this Division is licensed in a prescribed jurisdiction outside British Columbia, the tax may be paid, by paying the tax to the prescribed jurisdiction, at the time that the vehicle is licensed in that jurisdiction for that vehicle licence period.

Adjustment of tax under section 69

71   (1) If a person is required to pay tax imposed under section 69 in respect of a vehicle for a vehicle licence period and the tax payable under that section is calculated using a travel ratio for the vehicle determined under section 69 (4) (a) as it read immediately before its repeal, the person must determine the following at the end of the vehicle licence period:

(a) the actual distance the vehicles in the fleet of vehicles referred to in section 69 (4) (a) as it read immediately before its repeal travelled in British Columbia during the fleet licence year;

(b) the actual total distance that the vehicles in the fleet travelled during that fleet licence year;

(c) the amount calculated by the formula in section 69 (2), using the distances determined under paragraphs (a) and (b) of this subsection instead of the estimated distance under section 69 (4) (a) as it read immediately before its repeal.

(2) If the amount determined under subsection (1) (c) for a vehicle licence period exceeds the amount determined under section 69 (2) for the vehicle licence period based on the reasonable estimates under section 69 (4) (a) as it read immediately before its repeal, the person who is required to pay tax imposed under section 69 in respect of a vehicle for a vehicle licence period must pay to the government tax equal to the amount of the excess.

(3) Tax payable under subsection (2) must be paid on or before the last day of the month after the month in which the vehicle licence period ends.

(4) If the director is satisfied that the amount determined under section 69 (2) for the vehicle licence period based on the reasonable estimates under section 69 (4) (a) as it read immediately before its repeal exceeds the amount determined under subsection (1) (c) of this section for the vehicle licence period, the director must refund to the person who paid tax under section 69 the amount of the excess.

(5) This section does not apply in relation to tax imposed under section 69 on or after January 1, 2015.

Tax if vehicle ceases to be multijurisdictional

72   (1) Subject to subsection (2), this section applies to a person in relation to a vehicle if

(a) the person licensed the vehicle under a licence to which a prorating agreement applies,

(b) the person paid tax under one or both of sections 69 and 71 in respect of the vehicle, and

(c) the vehicle ceases to be licensed under a licence to which a prorating agreement applies and is subsequently licensed for use solely within British Columbia.

(2) This section does not apply to a person in relation to a vehicle if

(a) the person, as lessee, leases the vehicle,

(b) the person previously licensed the vehicle for use solely within British Columbia before licensing the vehicle under a licence to which a prorating agreement applies, or

(c) the vehicle was transferred to the person under an agreement that provided that a beneficial interest in the vehicle was retained by the person who transferred the vehicle.

(d) [Repealed 2014-4-63.]

(3) A person to whom this section applies must pay to the government tax at the rate of 7% of the purchase price of the vehicle.

(4) Tax payable under subsection (3) must be paid to the government by paying the tax to the Insurance Corporation of British Columbia at the time the vehicle is licensed for use solely within British Columbia.

(5) If a person must pay tax under subsection (3), the Insurance Corporation of British Columbia must provide to the person a credit in relation to the tax paid by that person under one or both of sections 69 and 71 in respect of the vehicle.

(6) The credit to which a person is entitled under subsection (5)

(a) must be calculated in accordance with the regulations,

(b) must be applied against the tax payable under subsection (3) by the person in respect of the vehicle, and

(c) must not be provided to the person in any other manner.

Tax if transferred vehicle ceases to be multijurisdictional

72.1   (1) Subject to subsection (2), this section applies to

(a) a person in relation to a vehicle if

(i) the person transferred the vehicle under an agreement but retained a beneficial interest in the vehicle,

(ii) the vehicle was licensed by the person to whom the vehicle was transferred under subparagraph (i) under a licence to which a prorating agreement applies and that person paid tax under one or both of sections 69 and 71,

(iii) the vehicle ceases to be licensed under a licence to which a prorating agreement applies and is subsequently licensed for use solely within British Columbia, and

(iv) the person referred to in subparagraph (ii) has ceased to hold an interest in the vehicle, or

(b) a person in relation to a vehicle if

(i) the person received an interest in the vehicle under an agreement referred to in paragraph (a) (i),

(ii) the vehicle was licensed by the person under a licence to which a prorating agreement applies and that person paid tax under one or both of sections 69 and 71,

(iii) the vehicle ceases to be licensed under a licence to which a prorating agreement applies and is subsequently licensed for use solely within British Columbia, and

(iv) the person continues to hold an interest in the vehicle.

(2) This section does not apply to a person in relation to a vehicle if

(a) any person referred to in subsection (1), as lessee, leases the vehicle, or

(b) the vehicle was licensed for use solely within British Columbia

(i) before the vehicle was licensed under a licence to which a prorating agreement applies, and

(ii) during the period in which the person referred to in subsection (1) (a) (i) retained a beneficial interest in the vehicle.

(c) [Repealed 2014-4-64.]

(3) A person to whom this section applies must pay to the government tax at the rate of 7% of the purchase price of the vehicle.

(4) Tax payable under subsection (3) must be paid to the government by paying the tax to the Insurance Corporation of British Columbia at the time the vehicle is licensed for use solely within British Columbia.

(5) If a person must pay tax under subsection (3), the Insurance Corporation of British Columbia must provide to the person a credit in relation to the tax paid under one or both of sections 69 and 71 in respect of the vehicle.

(6) The credit to which a person is entitled under subsection (5)

(a) must be calculated in accordance with the regulations,

(b) must be applied against the tax payable under subsection (3) by the person in respect of the vehicle, and

(c) must not be provided to the person in any other manner.

Liability of other persons

73   If tax is payable by a person under this Division in respect of a vehicle for a vehicle licence period, any other person who had management of or the right to determine the utilization of the vehicle while it was in British Columbia during the vehicle licence period is jointly and severally liable with any other person liable for that tax.

Refund or credit of tax if fleet licensing changed

74   (0.1) In this section, "licensed" means licensed under a licence to which a prorating agreement applies.

(1) If a vehicle that is licensed by a person as part of a fleet is, before the end of the fleet licence year applicable to that fleet, licensed by the person as part of a different fleet,

(a) that person must pay to the government tax imposed under section 69 (1) in respect of the vehicle's vehicle licence period when licensed as part of the different fleet, and

(b) that person is entitled to a credit under subsection (2) or refund under subsection (3) in relation to the tax paid by that person under one or both of sections 69 and 71 in respect of the vehicle for the last vehicle licence period under the previous licence.

(1.1) Subsection (1.2) applies in relation to a vehicle if

(a) a person transferred the vehicle under an agreement but retained a beneficial interest in the vehicle,

(b) the vehicle was licensed by another person as part of a fleet,

(c) the vehicle is, before the end of the fleet licence year applicable to that fleet, licensed by the person referred to in paragraph (a) of this subsection or by a third person as part of a different fleet, and

(d) the person referred to in paragraph (a) retains a beneficial interest in the vehicle.

(1.2) If this subsection applies in relation to a vehicle, the person who licensed the vehicle as part of the different fleet referred to in subsection (1.1) (c)

(a) must pay to the government tax imposed under section 69 (1) in respect of the vehicle's vehicle licence period when licensed as part of the different fleet, and

(b) is entitled to a credit under subsection (2) or refund under subsection (3) in relation to the tax paid under one or both of sections 69 and 71 in respect of the vehicle for the last vehicle licence period under the previous licence.

(2) If the vehicle that is licensed as part of a different fleet is licensed in British Columbia, the Insurance Corporation of British Columbia must provide to the person, at the time the vehicle is licensed as part of the different fleet, a credit of a portion of the tax previously paid under one or both of sections 69 and 71 in respect of the vehicle for the last vehicle licence period under the previous licence against the amount of any tax that the person is required to pay under this Division.

(3) If the vehicle that is licensed as part of a different fleet is not licensed in British Columbia, the director may pay to the person a refund of a portion of the tax previously paid under one or both of sections 69 and 71 in respect of the vehicle for the last vehicle licence period under the previous licence.

(4) The credit to which a person is entitled under subsection (2)

(a) must be calculated in accordance with the regulations,

(b) must be applied against any tax payable under this Division by the person in respect of the vehicle until the full amount of the credit has been applied in that manner, and

(c) must not be provided to the person in any other manner.

(5) A refund under subsection (3) must be calculated in accordance with the regulations.

Refund if vehicle ceases to be multijurisdictional

74.1   (1) The director must pay to a person a refund of a portion of the tax paid by the person under one or both of sections 69 and 71 in respect of a vehicle for the last vehicle licence period under a licence to which a prorating agreement applies if the director is satisfied that

(a) the person licensed the vehicle under a licence to which a prorating agreement applies,

(b) the person paid tax under one or both of sections 69 and 71 in respect of the vehicle,

(c) before the end of that vehicle licence period, the vehicle ceases to be licensed under the licence to which the prorating agreement applies,

(d) no person is entitled to a credit or refund under section 74 in respect of the vehicle, and

(e) either

(i) no tax is payable under section 72 or 72.1 in respect of the vehicle because of section 72 (2) (a) or (b) or 72.1 (2), or

(ii) on ceasing to be licensed under a licence to which a prorating agreement applies, the vehicle is licensed for use within another jurisdiction and is not licensed for use within British Columbia.

(2) A refund under subsection (1) must be calculated in accordance with the regulations.

Refund at end of vehicle licence period

74.2   (1) The director must pay to a person a refund of a portion of the tax paid by the person under one or both of sections 69 and 71 in respect of a vehicle licensed, for a vehicle licence period, under a licence to which a prorating agreement applies if, at the end of the vehicle licence period, the director is satisfied that

(a) the person licensed the vehicle under a licence to which a prorating agreement applies,

(b) the person paid tax under one or both of sections 69 and 71 in respect of the vehicle,

(c) before the end of that vehicle licence period, the vehicle ceased to be licensed under the licence to which the prorating agreement applies,

(d) the vehicle was not licensed for use solely within British Columbia subsequent to being licensed under the licence to which the prorating agreement applies, and

(e) no person is entitled to a credit or refund under section 74 in respect of the vehicle.

(2) A refund under subsection (1) must be calculated in accordance with the regulations.

Credit if tax previously paid

75   (1) The Insurance Corporation of British Columbia must provide a credit to a person who licenses a vehicle in British Columbia under a licence to which a prorating agreement applies if

(a) the vehicle is so licensed before the end of the 4th calendar year after the calendar year in which is its acquisition date, and

(b) [Repealed 2013-1-193.]

(c) the person had previously paid tax on the purchase price of the vehicle under

(i) section 37 [tax on purchase],

(ii) section 49 (5) [tax if tangible personal property brought into British Columbia for use], as that tax was calculated under section 49 (6), or

(iii) section 50 [tax on registration of vehicle brought into British Columbia].

(1.1) The Insurance Corporation of British Columbia must provide a credit to a person who licenses a vehicle in British Columbia under a licence to which a prorating agreement applies if

(a) the vehicle is transferred to the person under an agreement but the transferor retains a beneficial interest in the vehicle,

(b) the vehicle is so licensed before the end of the 4th calendar year after the calendar year in which is the transferor's acquisition date for the vehicle, and

(c) the transferor referred to in paragraph (a) had previously paid tax on the purchase price of the vehicle under

(i) section 37 [tax on purchase],

(ii) section 49 (5) [tax if tangible personal property brought into British Columbia for use], as that tax was calculated under section 49 (6), or

(iii) section 50 [tax on registration of vehicle brought into British Columbia].

(2) The credit to which a person is entitled under subsection (1) or (1.1)

(a) must be calculated in accordance with the regulations,

(b) must be applied against any tax payable under this Division by the person in respect of the vehicle until the full amount of the credit has been applied in that manner, and

(c) must not be provided to the person in any other manner.

Transition — credit if tax previously paid

75.1   (1) The Insurance Corporation of British Columbia must provide a credit to a person who licenses a vehicle in British Columbia under a licence to which a prorating agreement applies if

(a) the vehicle is so licensed before the end of the 4th calendar year after the calendar year in which is its acquisition date,

(b) the person had previously

(i) paid tax in relation to the vehicle under section 5 [tax on purchase] or 11 (3) [tax if tangible personal property brought into British Columbia for use] of the Social Service Tax Act and for which the person has not obtained and is not entitled to obtain a refund under that Act,

(ii) paid tax in relation to the vehicle under section 19 [tax on designated property acquired in British Columbia], 20 [tax on designated property brought into British Columbia] or 21 [tax on registration of vehicle brought into British Columbia] of the Consumption Tax Rebate and Transition Act and for which the person has not obtained and is not entitled to obtain a refund under that Act, or

(iii) paid tax in relation to the vehicle under section 165 (2), 212.1 or 218.1 or Division IV.1 of Part IX of the Excise Tax Act, in respect of British Columbia as a participating province under Part IX of that Act, that the person previously paid in relation to the tangible personal property and for which the person has not obtained and is not entitled to obtain a refund, credit or rebate under Part IX of that Act,

(c) the vehicle was purchased in British Columbia or was first brought, sent or delivered into British Columbia after March 31, 2009 but before April 1, 2013, and

(d) the vehicle is subject to tax imposed under section 69 [tax if multijurisdictional vehicle licensed] of this Act.

(2) The Insurance Corporation of British Columbia must provide a credit to a person who licenses a vehicle in British Columbia under a licence to which a prorating agreement applies if

(a) the vehicle is transferred to the person under an agreement but the transferor retains a beneficial interest in the vehicle,

(b) the vehicle is so licensed before the end of the 4th calendar year after the calendar year in which is the transferor's acquisition date for the vehicle,

(c) the transferor referred to in paragraph (a) had previously

(i) paid tax in relation to the vehicle under section 5 or 11 (3) of the Social Service Tax Act and for which the person has not obtained and is not entitled to obtain a refund under that Act,

(ii) paid tax in relation to the vehicle under section 19, 20 or 21 of the Consumption Tax Rebate and Transition Act and for which the person has not obtained and is not entitled to obtain a refund under that Act, or

(iii) paid tax in relation to the vehicle under section 165 (2), 212.1 or 218.1 or Division IV.1 of Part IX of the Excise Tax Act, in respect of British Columbia as a participating province under Part IX of that Act, that the person previously paid in relation to the tangible personal property and for which the person has not obtained and is not entitled to obtain a refund, credit or rebate under Part IX of that Act,

(d) the vehicle was purchased in British Columbia or was first brought, sent or delivered into British Columbia after March 31, 2009 but before April 1, 2013, and

(e) the vehicle is subject to tax imposed under section 69 of this Act.

(3) The credit to which a person is entitled under subsection (1) or (2)

(a) must be calculated in accordance with the regulations,

(b) must be applied against any tax payable under this Division by the person in respect of the vehicle until the full amount of the credit has been applied in that manner, and

(c) must not be provided to the person in any other manner.

Refund from Insurance Corporation of British Columbia authorized under regulations

75.2   If authorized by the regulations, the Insurance Corporation of British Columbia may refund all or part of an amount paid as tax under this Division.

Refund or credit for trade-in vehicles

76   (1) In this section:

"new vehicle" means the vehicle referred to in the definition of "trade-in vehicle" in respect of which tax is payable under section 69 [tax if multijurisdictional vehicle licensed];

"trade-in vehicle" means a multijurisdictional vehicle on which tax has been paid under this Division and that, before the expiration of its current vehicle licence period, is accepted at the time of sale by the seller on account of the purchase price of another multijurisdictional vehicle in respect of which tax is payable under section 69.

(2) If the new vehicle is licensed in British Columbia under a licence to which a prorating agreement applies, the Insurance Corporation of British Columbia must provide to the person licensing the new vehicle, at the time the vehicle is licensed, a credit of a portion of the tax paid under this Division on the trade-in vehicle against the amount of tax the person is required to pay under this Division in respect of the new vehicle.

(3) If the new vehicle is licensed outside British Columbia under a licence to which a prorating agreement applies, the director may provide to the person who licensed the new vehicle a refund of a portion of the tax paid on the trade-in vehicle.

(4) Subject to subsection (5), the credit under subsection (2) and the refund under subsection (3) must be limited to the tax paid under this Division that is attributable to the portion of the current vehicle licence period of the trade-in vehicle remaining after the trade-in vehicle has been traded.

(5) The credit to which a person is entitled under subsection (2)

(a) must be calculated in accordance with the regulations,

(b) must be applied against any tax payable under this Division by the person in respect of the vehicle until the full amount of the credit has been applied in that manner, and

(c) must not be provided to the person in any other manner.

(6) A refund under subsection (3) must be calculated in accordance with the regulations.

Refund for replacement vehicles

77   (1) In this section, "replacement vehicle" means a vehicle that is leased to be used as a replacement for a multijurisdictional vehicle that

(a) is being repaired, and

(b) is therefore unavailable for use during part of its vehicle licence period.

(2) Subject to subsections (3) and (4), if the director is satisfied that

(a) a person has paid tax under this Division or under section 39 (1) on a replacement vehicle,

(b) tax has been paid under this Division on the multijurisdictional vehicle being repaired, and

(c) the replacement vehicle is used only

(i) in accordance with the terms of the licence that was issued for the multijurisdictional vehicle being repaired, and

(ii) for the purposes for which that multijurisdictional vehicle would be used were it not being repaired,

the director must refund to the person the tax referred to in paragraph (a).

(3) Any refund under this section is, if the refund is in respect of tax paid under section 39 (1), limited to the tax paid on lease payments for the replacement vehicle in respect of rental periods, or portions of rental periods, that are wholly within

(a) the period during which the multijurisdictional vehicle is being repaired, and

(b) the vehicle licence period of the multijurisdictional vehicle.

(4) Any refund under this section is, if the refund is in respect of tax paid under this Division, limited to the tax paid that is attributable to the portion of the replacement vehicle's vehicle licence period that is wholly within

(a) the period during which the multijurisdictional vehicle is being repaired, and

(b) the vehicle licence period of the multijurisdictional vehicle.

Refund for short term rental vehicles

78   If the director is satisfied that

(a) a person paid tax under this Division in relation to a multijurisdictional vehicle that

(i) is a short term rental vehicle, and

(ii) is leased, during a vehicle licence period, primarily to other persons who must pay tax under section 39 [tax on leases] in relation to the lease, and

(b) tax was levied and remitted as required under this Act in respect of tax payable under section 39 on the lease of the short term rental vehicle during the vehicle licence period,

the director must refund to the person the tax paid under this Division for that vehicle licence period in relation to the multijurisdictional vehicle.

Division 8 — Affixed Machinery and Improvements to Real Property

Contractor exempt from tax under section 37 or 49

79   (1) A contractor is exempt from tax imposed under section 37 [tax on purchase] in relation to tangible personal property if

(a) the contractor, for the purposes of fulfilling a contract under which the contractor is required to supply and affix, or install, affixed machinery or improvements to real property situated in British Columbia, purchases the tangible personal property at a sale in British Columbia,

(b) under the terms of the contract, the tangible personal property will be used so that it ceases to be personal property at common law, and

(c) there is evidence, in the form described in section 80.61, that the contractor and the person with whom the contractor has entered into the contract have agreed that the person is liable for tax imposed under section 80 in relation to the tangible personal property.

(d) [Repealed 2022-11-72.]

(2) A contractor is exempt from tax imposed under section 49 [tax if tangible personal property brought into British Columbia for use] in relation to tangible personal property if

(a) the contractor, for the purposes of fulfilling a contract under which the contractor is required to supply and affix, or install, affixed machinery or improvements to real property situated in British Columbia, brings or sends into British Columbia, or receives delivery of in British Columbia, the tangible personal property,

(b) under the terms of the contract, the tangible personal property will be used so that it ceases to be personal property at common law, and

(c) there is evidence, in the form described in section 80.61, that the contractor and the person with whom the contractor has entered into the contract have agreed that the person is liable for tax imposed under section 80 in relation to the tangible personal property.

(d) [Repealed 2022-11-72.]

Tax on tangible personal property used to improve real property if contractor exempt

80   (1) This section applies to a person in relation to tangible personal property if

(a) the person has entered into the contract referred to in section 79 (1) (a) or (2) (a) with a contractor in relation to the tangible personal property, and

(b) the contractor is exempt under section 79 from tax imposed under section 37 [tax on purchase] or 49 [tax if tangible personal property brought into British Columbia for use] in relation to the tangible personal property.

(2) A person to whom this section applies must pay to the government tax on the purchase price of the tangible personal property at the applicable rate under section 34.

(3) If tax is paid under this section in respect of tangible personal property, then no tax is payable in respect of that property under section 37 or 49.

Contractor exempt from tax under section 37 or 49 if other person would be exempt

80.1   (1) Subject to subsection (3), a contractor is exempt from tax imposed under section 37 [tax on purchase] in relation to tangible personal property if

(a) the contractor, for the purposes of fulfilling a written contract under which the contractor is required to supply and affix, or install, affixed machinery or improvements to real property, purchases the tangible personal property at a sale in British Columbia,

(b) under the terms of the contract, the tangible personal property will be used so that it ceases to be personal property at common law, and

(c) the other party who entered into the contract with the contractor is one of the following:

(i) the government of Canada;

(ii) a person who would be exempt under this Act from tax imposed under section 37 if the person were to purchase the tangible personal property;

(iii) a First Nation individual or band that would be exempt from tax imposed under section 37 if the First Nation individual or band were to purchase the tangible personal property.

(2) Subject to subsection (3), a contractor is exempt from tax imposed under section 49 [tax if tangible personal property brought into British Columbia for use] in relation to tangible personal property if

(a) the contractor, for the purposes of fulfilling a written contract under which the contractor is required to supply and affix, or install, affixed machinery or improvements to real property, brings or sends into British Columbia, or receives delivery of in British Columbia, the tangible personal property,

(b) under the terms of the contract, the tangible personal property will be used so that it ceases to be personal property at common law, and

(c) the other party who entered into the contract with the contractor is one of the following:

(i) the government of Canada;

(ii) a person who would be exempt under this Act from tax imposed under section 49 if the person were to bring or send into British Columbia, or receive delivery of in British Columbia, the tangible personal property;

(iii) a First Nation individual or band that would be exempt from tax imposed under section 49 if the First Nation individual or band were to bring or send into British Columbia, or receive delivery of in British Columbia, the tangible personal property.

(3) Subsection (1) (c) (i) or (2) (c) (i) does not apply if the government of Canada has entered into an agreement with the government of British Columbia under which the government of Canada has agreed to pay tax imposed under this Act.

Refund of tax paid by contractor under Division 5

80.2   (1) The director must refund to a contractor the tax paid under Division 5 [Property Brought into British Columbia from Outside Canada] by the contractor in relation to tangible personal property if the director is satisfied that

(a) the contractor, for the purposes of fulfilling a contract under which the contractor is required to supply and affix, or install, affixed machinery or improvements to real property situated in British Columbia,

(i) brings the tangible personal property into British Columbia from a place outside Canada, or

(ii) sends the tangible personal property, or enters into an arrangement under which the tangible personal property is sent, into British Columbia from a place outside Canada,

(b) the contractor paid tax under Division 5 in relation to the tangible personal property,

(c) under the terms of the contract, the tangible personal property will be used so that it ceases to be personal property at common law, and

(d) there is evidence, in the form described in section 80.61, that the contractor and the person with whom the contractor has entered into the contract have agreed that the person is liable for tax imposed under section 80.3 in relation to the tangible personal property.

(e) [Repealed 2022-11-73.]

(2) Subject to subsection (3), the director must refund to a contractor the tax paid under Division 5 [Property Brought into British Columbia from Outside Canada] by the contractor in relation to tangible personal property if the director is satisfied that

(a) the contractor, for the purposes of fulfilling a written contract under which the contractor is required to supply and affix, or install, affixed machinery or improvements to real property,

(i) brings the tangible personal property into British Columbia from a place outside Canada, or

(ii) sends the tangible personal property, or enters into an arrangement under which the tangible personal property is sent, into British Columbia from a place outside Canada,

(b) the contractor paid tax under Division 5 in relation to the tangible personal property,

(c) under the terms of the contract, the tangible personal property will be used so that it ceases to be personal property at common law, and

(d) the other party who entered into the contract with the contractor is one of the following:

(i) the government of Canada;

(ii) a person who would be exempt under this Act from tax imposed under Division 5 if the person were to bring or send into British Columbia, or receive delivery of in British Columbia, the tangible personal property;

(iii) a First Nation individual or band that would be exempt from tax imposed under Division 5 if the First Nation individual or band were to bring or send into British Columbia, or receive delivery of in British Columbia, the tangible personal property.

(3) Subsection (2) (d) (i) does not apply if the government of Canada has entered into an agreement with the government of British Columbia under which the government of Canada has agreed to pay tax imposed under this Act.

Tax on tangible personal property used to improve real property if contractor obtained refund

80.3   (1) This section applies to a person in relation to tangible personal property if

(a) the person has entered into a contract referred to in section 80.2 (1) (a) with a contractor in relation to the tangible personal property, and

(b) the contractor has obtained a refund under section 80.2 in relation to the tangible personal property.

(2) A person to whom this section applies must pay to the government tax on the purchase price of the tangible personal property at the applicable rate under section 34.

(3) Tax payable under subsection (2) must be paid on or before the prescribed date and in the prescribed manner.

Tax if change in use of tangible personal property used to improve real property

80.4   (1) This section applies to a person in relation to tangible personal property if

(a) the person has entered into a contract referred to in section 80.1 (1) (a) or (2) (a), 80.2 (2) (a) or 80.5 (1) (b) with a contractor in relation to the property,

(b) the contractor was exempt under section 80.1 (1) (c) (ii) or (2) (c) (ii) or 80.5 (7) (b) or entitled to a refund under section 80.2 (2) (d) (ii) because the person would have been exempt from tax under this Act because the property was to be used for a particular purpose, and

(c) the person subsequently uses that property, or allows that property to be used, for a purpose other than

(i) the particular purpose, or

(ii) another purpose for which the property would be exempt from tax under this Act if the property were to be used for that purpose.

(2) A person to whom this section applies must pay to the government tax on the purchase price of the tangible personal property at the applicable rate under section 34.

(3) Tax payable under subsection (2) must be paid on or before the last day of the month after the month in which the person first uses that property, or allows that property to be used, as referred to in subsection (1) (c).

(4) Despite subsection (3), tax payable under subsection (2) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Transitional tax on tangible personal property used by contractor to improve real property

80.5   (1) This section applies to a contractor in relation to tangible personal property if

(a) the contractor

(i) purchased tangible personal property at a sale in British Columbia, or

(ii) brought or sent into British Columbia, or received delivery of in British Columbia, the tangible personal property, and

(b) the contractor, for the purposes of fulfilling a contract under which the contractor is required to supply and affix, or install, affixed machinery or improvements to real property, uses the tangible personal property so that it ceases to be personal property at common law.

(2) A contractor to whom this section applies must pay to the government tax on the purchase price of the tangible personal property at the applicable rate under section 34.

(3) The amount of tax payable under subsection (2) by a contractor in relation to tangible personal property is reduced by the total of the following:

(a) the amount of tax under section 37, 49 or 55 payable or previously paid by the contractor in relation to the tangible personal property and for which the contractor has not obtained and is not entitled to obtain a refund under this Act;

(b) the amount of tax under the Social Service Tax Act previously paid by the contractor in relation to the tangible personal property and for which the contractor has not obtained and is not entitled to obtain a refund under that Act;

(c) the amount of tax under section 165 (2), 212.1 or 218.1 or Division IV.1 of Part IX of the Excise Tax Act, in respect of British Columbia as a participating province under Part IX of that Act, previously paid by the contractor in relation to the tangible personal property and for which the contractor has not obtained and is not entitled to obtain a refund, credit or rebate under Part IX of that Act.

(4) Tax payable under subsection (2) must be paid on or before the last day of the month after the month in which the contractor uses the tangible personal property in a manner such that the tangible personal property ceases to be personal property at common law.

(5) Despite subsection (4), tax payable under subsection (2) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

(6) A contractor is exempt from tax imposed under subsection (2) in relation to tangible personal property if

(a) there is evidence, in the form described in section 80.61, that the contractor and the person with whom the contractor has entered into the contract have agreed that the person is liable for tax imposed under section 80.6 in relation to the tangible personal property, and

(b) [Repealed 2022-11-74.]

(c) for the purpose of fulfilling the contract referred to in subsection (1) (b), the contractor is required to supply and affix, or install, affixed machinery or improvements to real property situated in British Columbia.

(7) Subject to subsection (8), a contractor is exempt from tax imposed under subsection (2) in relation to tangible personal property if the contract referred to in subsection (1) (b) is in writing and the other party who entered into that contract with the contractor is one of the following:

(a) the government of Canada;

(b) a person who would be exempt under this Act from tax

(i) imposed under section 37 if the person were to purchase the tangible personal property, or

(ii) imposed under section 49 if the person were to bring or send into British Columbia, or receive delivery of in British Columbia, the tangible personal property;

(c) a First Nation individual or band that would be exempt from tax

(i) imposed under section 37 if the First Nation individual or band were to purchase the tangible personal property, or

(ii) imposed under section 49 if the First Nation individual or band were to bring or send into British Columbia, or receive delivery of in British Columbia, the tangible personal property.

(8) Subsection (7) (a) does not apply if the government of Canada has entered into an agreement with the government of British Columbia under which the government of Canada has agreed to pay tax imposed under this Act.

Transitional tax on tangible personal property used to improve real property

80.6   (1) This section applies to a person in relation to tangible personal property if

(a) the person has entered into a contract referred to in section 80.5 (1) (b) with a contractor,

(b) the contractor uses the tangible personal property so that it ceases to be personal property at common law, and

(c) the contractor is exempt under section 80.5 (6) from tax imposed under section 80.5 (2) in relation to the tangible personal property.

(2) A person to whom this section applies must pay to the government tax on the purchase price of the tangible personal property at the applicable rate under section 34.

(3) The amount of tax payable under subsection (2) by a person in relation to tangible personal property is reduced by the total of the following:

(a) the amount of tax under section 80 payable or previously paid by the person in relation to the tangible personal property and for which the person has not obtained and is not entitled to obtain a refund under this Act;

(b) the amount of tax under the Social Service Tax Act previously paid by the person or the contractor in relation to the tangible personal property and for which the person or the contractor has not obtained and is not entitled to obtain a refund under that Act;

(c) the amount of tax under section 165 (2), 212.1 or 218.1 or Division IV.1 of Part IX of the Excise Tax Act, in respect of British Columbia as a participating province under Part IX of that Act, previously paid by the person or the contractor in relation to the tangible personal property and for which the person or the contractor has not obtained and is not entitled to obtain a refund, credit or rebate under Part IX of that Act.

(4) Tax payable under subsection (2) must be paid on or before the last day of the month after the month in which the contractor uses the tangible personal property in a manner such that the tangible personal property ceases to be personal property at common law.

Evidence for purposes of sections 79, 80.2 and 80.5

80.61   (1) For the purposes of sections 79 (1) and (2), 80.2 (1) and 80.5 (6), evidence that the contractor and the person with whom the contractor has entered into the contract have agreed that the person is liable for tax imposed under this Act in relation to the tangible personal property must be in the form of one of the following:

(a) a signed agreement between the parties that

(i) sets out the purchase price of the tangible personal property,

(ii) expressly identifies the particular provision of this Act under which the tax is imposed, and

(iii) expressly states that the person is liable for the tax;

(b) an invoice signed by the parties that

(i) lists the tangible personal property,

(ii) expressly identifies the particular provision of this Act under which the tax is imposed, and

(iii) expressly states that the person is liable for the tax;

(c) a declaration in a form acceptable to the director that the parties have agreed that the person is liable for the tax.

(2) Subject to subsection (3), any document other than a document described in subsection (1) does not constitute evidence that the contractor and the person with whom the contractor has entered into the contract have agreed that the person is liable for tax imposed under this Act in relation to the tangible personal property.

(3) If a contract referred to in this Division is entered into between April 1, 2013 and February 22, 2022, any document that contains information that, to the satisfaction of the director, is substantially similar to that described in subsection (1) constitutes evidence that the contractor and the person with whom the contractor has entered into the contract have agreed that the person is liable for tax imposed under this Act in relation to the tangible personal property.

Repealed

80.7-80.8   [Repealed 2013-1-200.]

Division 9 — Change in Use

Tax if change in use of property acquired for resale

81   (1) If a person purchased in British Columbia, brought or sent into British Columbia or received delivery of in British Columbia tangible personal property for resale and becomes, for any period, a user of that property, the person must pay to the government tax on the purchase price of that property at the applicable rate under section 34.

(1.1) Subsection (1) does not apply to a person if, when the person becomes a user of the tangible personal property, the tangible personal property is used for a purpose for which the tangible personal property would have been exempt from tax under this Act if the tangible personal property were to be used for that purpose when the person purchased in British Columbia, brought or sent into British Columbia or received delivery of in British Columbia that tangible personal property.

(2) Subsection (1) does not apply to a person in respect of a taxable conveyance, as defined in section 59, if section 64 [tax if change in use of conveyance acquired for resale] applies to the person in respect of the taxable conveyance.

(3) Tax payable under subsection (1) must be paid on or before the last day of the month after the month in which the person first becomes a user of the tangible personal property.

(4) Despite subsection (3), tax payable under subsection (1) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Tax if property used for new purpose

82   (1) Subject to section 87 [tax if recording exhibited], if a person

(a) purchased in British Columbia, brought or sent into British Columbia or received delivery of in British Columbia tangible personal property that was exempt from tax under this Act because the property was to be used for a particular purpose, and

(b) subsequently uses that property, or allows that property to be used, for a purpose other than

(i) the particular purpose, or

(ii) another purpose for which that property would be exempt from tax under this Act if that property were to be used for that purpose,

the person must pay to the government tax on the purchase price of that property at the applicable rate under section 34.

(2) Subsection (1) does not apply to a person in relation to tangible personal property that was exempt from tax under section 142 (1) or (2.1) [exemptions for tangible personal property intended for lease] if

(a) the only subsequent use of that property, other than leasing it, is occasionally, under an agreement, supplying the property with a person to operate it, and

(b) the tangible personal property is capitalized as lease inventory in the person's business accounting records.

(3) Tax payable under subsection (1) must be paid on or before the last day of the month after the month in which the person first uses that property, or allows that property to be used, as referred to in subsection (1) (b).

(4) Despite subsection (3), tax payable under subsection (1) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Tax if leased property used for new purpose

82.01   (1) Subject to subsection (2) and section 87 [tax if recording exhibited], this section applies to a person in relation to tangible personal property if the person

(a) leased tangible personal property that was exempt from tax under this Act because the tangible personal property was to be used for a particular purpose, and

(b) subsequently uses that tangible personal property, or allows that tangible personal property to be used, for a purpose other than

(i) the particular purpose, or

(ii) another purpose for which that tangible personal property would be exempt from tax under this Act if that tangible personal property were to be used for that purpose.

(2) This section does not apply to a person in relation to tangible personal property that was exempt from tax under section 142 (2) [exemption for tangible personal property intended for re-lease] if

(a) the only subsequent use of that tangible personal property, other than leasing it, is occasionally, under an agreement, supplying the tangible personal property with a person to operate it, and

(b) the tangible personal property is capitalized as lease inventory in the person's business accounting records.

(3) A person to whom this section applies must pay to the government, in respect of each rental period, under the lease, that includes or begins after the date that the person first uses that tangible personal property, or allows that tangible personal property to be used, as referred to in subsection (1) (b), tax on the lease price of the tangible personal property at the applicable rate under section 35 [rates of tax in relation to lease price].

(4) For the purposes of subsection (3), the lease price of the tangible personal property is,

(a) in relation to the rental period that includes the date that the person first uses that tangible personal property, or allows that tangible personal property to be used, as referred to in subsection (1) (b), that portion of the lease price of the tangible personal property that is attributable to that portion of the rental period that begins on that date and ends at the end of that rental period, or

(b) in relation to a rental period that begins after the date that the person first uses that tangible personal property, or allows that tangible personal property to be used, as referred to in subsection (1) (b), that portion of the lease price of the tangible personal property that is attributable to that rental period.

(5) Tax payable under subsection (3) in respect of the rental period referred to in subsection (4) (a) must be paid on or before the last day of the month after the month in which the person first uses that tangible personal property, or allows that tangible personal property to be used, as referred to in subsection (1) (b).

(6) Tax payable under subsection (3) in respect of a rental period referred to in subsection (4) (b) must be paid on or before the last day of the month after the month in which the rental periods ends.

(7) Despite subsections (5) and (6), tax payable under subsection (3) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Tax on parts or material if property containing parts or material used for new purpose

82.1   (1) This section applies to a person in relation to tangible personal property that is a part or material if the person

(a) purchased in British Columbia, brought or sent into British Columbia or received delivery of in British Columbia the part or material exempt under a prescribed provision of the regulations from tax under this Act because the part or material is to be used in relation to tangible personal property that would be exempt from tax under this Act if the tangible personal property were to be used for a particular purpose, and

(b) subsequently uses that tangible personal property, or allows that tangible personal property to be used, for a purpose other than

(i) the particular purpose, or

(ii) another purpose for which the part or material would be exempt from tax under this Act if that tangible personal property were to be used for that purpose.

(2) A person to whom this section applies must pay to the government tax on the purchase price of the part or material at the applicable rate under section 34.

(3) Tax payable under subsection (2) must be paid on or before the last day of the month after the month in which the person first uses the tangible personal property, or allows the tangible personal property to be used, as referred to in subsection (1) (b).

(4) Despite subsection (3), tax payable under subsection (2) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Tax if conditions for exemption not maintained for specified period

82.2   (1) This section applies to a person in relation to tangible personal property if

(a) the person purchased in British Columbia, brought or sent into British Columbia or received delivery of in British Columbia tangible personal property that was exempt under a prescribed provision of the regulations from tax under this Act,

(b) the prescribed provision of the regulations requires specified conditions to be maintained for a specified period, and

(c) those conditions are not maintained for that period.

(2) A person to whom this section applies must pay to the government tax on the purchase price of the tangible personal property at the applicable rate under section 34.

(3) Tax payable under subsection (2) must be paid on or before the last day of the month after the month in which the conditions referred to in subsection (1) are not maintained.

(4) Despite subsection (3), tax payable under subsection (2) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Tax if change in use of vehicle, boat or aircraft exempt from tax under Consumption Tax Rebate and Transition Act

82.3   (1) In this section, "designated property" has the same meaning as in the Consumption Tax Rebate and Transition Act, as that Act read on March 31, 2013.

(2) This section applies to a person in relation to tangible personal property that is designated property if the person

(a) purchased in British Columbia, brought or sent into British Columbia or received delivery of in British Columbia the designated property in respect of which tax was not payable under the Consumption Tax Rebate and Transition Act, other than by reason of an exemption under section 26 of that Act, and

(b) subsequently uses that property, or allows that property to be used, for a purpose other than a purpose for which that property would be exempt from tax under this Act if that property were to be used for that purpose.

(3) A person to whom this section applies must pay to the government tax on the purchase price of the designated property at the applicable rate under section 34.

(4) Tax payable under subsection (3) must be paid on or before the last day of the month after the month in which the person first uses the property, or allows the property to be used, as referred to in subsection (2) (b).

(5) Despite subsection (4), tax payable under subsection (3) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Tax if change in use of property acquired for lease

83   (1) If a person

(a) purchased in British Columbia, brought or sent into British Columbia or received delivery of in British Columbia tangible personal property that was exempt from tax under section 142 (4) or (5) [exemptions for tangible personal property intended for lease], and

(b) subsequently ceases to capitalize that property as lease inventory in the person's business accounting records,

the person must pay to the government tax on the purchase price of that property at the applicable rate under section 34.

(2) Tax payable under subsection (1) must be paid on or before the last day of the month after the month in which the person first ceases to capitalize that property as lease inventory in the person's business accounting records.

(3) Despite subsection (2), tax payable under subsection (1) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Tax if change in use of resulting tangible personal property

84   (1) If a person

(a) purchased in British Columbia, brought or sent into British Columbia or received delivery of in British Columbia tangible personal property that was exempt from tax under section 141 (1) (a) or (b), and

(b) becomes, for any period, a user of the tangible personal property to which the tangible personal property referred to in paragraph (a) of this subsection is processed, fabricated or manufactured into, attached to or incorporated into,

the person must pay to the government tax on the purchase price of the tangible personal property referred to in paragraph (a) at the applicable rate under section 34.

(2) Tax payable under subsection (1) must be paid on or before the last day of the month after the month in which the person first becomes a user of the tangible personal property first mentioned in subsection (1) (b).

(3) Despite subsection (2), tax payable under subsection (1) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Tax if dealer or manufacturer changes use of motor vehicle

84.1   (1) In this section:

"dealer" means a person who is registered as a motor dealer under the Motor Dealer Act;

"eligible use" means a use referred to in paragraph (a) (ii) and (iii) of the definition of "use";

"manufacturer" means a person who makes motor vehicles but does not include a dealer.

(2) If a dealer purchased in British Columbia, brought or sent into British Columbia or received delivery of in British Columbia a prescribed motor vehicle for resale or for the purpose of leasing the motor vehicle to other persons and, in a month, uses that motor vehicle in British Columbia only for a prescribed use, in addition to an eligible use, the dealer must pay to the government tax calculated in accordance with the regulations.

(3) If a dealer in a month uses only for a prescribed use, in addition to an eligible use, a prescribed motor vehicle into which tangible personal property exempt from tax under section 141 (1) (a) has been processed, fabricated, manufactured or incorporated, or to which tangible personal property exempt from tax under that section has been attached, the dealer must pay to the government tax calculated in accordance with the regulations.

(4) If a manufacturer brought or sent into British Columbia, or received delivery of in British Columbia, a prescribed motor vehicle for sale or for the purpose of leasing the motor vehicle to other persons and, in a month, uses that motor vehicle in British Columbia only for a prescribed use, in addition to an eligible use, the manufacturer must pay to the government tax calculated in accordance with the regulations.

(5) If a manufacturer in a month uses only for a prescribed use, in addition to an eligible use, a prescribed motor vehicle into which tangible personal property exempt from tax under section 141 (1) (a) has been processed, fabricated, manufactured or incorporated, or to which tangible personal property exempt from tax under that section has been attached, the manufacturer must pay to the government tax calculated in accordance with the regulations.

(6) Tax payable under subsections (2) to (5) must be paid on or before the prescribed date and in the prescribed manner.

(7) A dealer or manufacturer who must pay tax under subsection (2) or (4) is exempt from tax imposed under section 81 or 82 in relation to the use of the motor vehicle that is subject to tax under this section.

(8) A dealer or manufacturer who must pay tax under subsection (3) or (5) is exempt from tax imposed under section 84 in relation to the use of the motor vehicle that is subject to tax under this section.

Tax if change in use of prototype

85   (1) If a person

(a) purchased in British Columbia, brought or sent into British Columbia or received delivery of in British Columbia tangible personal property that was exempt from tax under section 141 (1) (d) or (e), and

(b) for any period after the testing of the prototype or copy of the prototype referred to under section 141 (1) (d) or (e),

(i) becomes the user of that prototype or copy of that prototype, or

(ii) becomes entitled to receive consideration for use of that prototype or copy of that prototype,

the person must pay to the government tax on the purchase price of that tangible personal property at the applicable rate under section 34.

(2) Subsection (1) does not apply if the only use of the prototype or copy of the prototype is for demonstration and the only consideration received for the use of that prototype or copy of that prototype does not exceed the actual cost of that demonstration.

(3) Tax payable under subsection (1) must be paid on or before the last day of the month after the month in which the earliest of the following occurs:

(a) the person first becomes a user of the prototype or copy of the prototype;

(b) the consideration for use of the prototype or copy of the prototype is paid;

(c) the consideration for use of the prototype or copy of the prototype becomes due.

(4) Despite subsection (3), tax payable under subsection (1) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Tax if change in use of property for which refund received under taxation agreement

86   (1) If a person

(a) received a refund of tax under section 155 [refund in accordance with Nisa'a Nation Taxation Agreement] or 156 [refund in accordance with treaty first nation tax treatment agreement] in relation to tangible personal property, and

(b) subsequently uses that property, or allows that property to be used, for a purpose other than

(i) a purpose that would entitle the person to receive a refund of tax under section 155 or 156, or

(ii) another purpose for which that property would be exempt from tax under this Act if that property were to be used for that purpose,

the person must pay to the government tax on the purchase price or lease price, as the case may be, at the applicable rate under section 34 [rates of tax in relation to purchase price] or 35 [rates of tax in relation to lease price].

(2) Tax payable under subsection (1) must be paid on or before the last day of the month after the month in which the person first uses that property, or allows that property to be used, as referred to in subsection (1) (b).

Tax if recording exhibited

87   (1) A person

(a) who brought or sent into British Columbia, received delivery of in British Columbia, purchased or leased, exempt from tax under section 143 (b) (ii), tangible personal property that is a recording of a motion picture, and

(b) who exhibits the motion picture in a movie theatre or other public venue

must pay to the government tax in an amount equal to the amount of tax under this Act that would have otherwise been payable if the person had acquired the right or authority to exhibit the motion picture from a willing lessor acting in good faith in an arm's length transaction in the open market.

(2) Tax payable under subsection (1) must be paid on or before the last day of the month after the month in which the motion picture is exhibited.

(3) Despite subsection (2), tax payable under subsection (1) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Tax if leased tangible personal property becomes part of real property

88   (1) If, during the term of a lease of tangible personal property, the tangible personal property is used so that it ceases to be personal property at common law, then

(a) the tangible personal property is deemed to be sold at a retail sale immediately before the tangible personal property ceases to be personal property,

(b) the person leasing the tangible personal property to the lessee is deemed to be the seller of the tangible personal property,

(c) the lessee must pay tax imposed under section 37 as if the lessee were a purchaser of that tangible personal property, and

(d) the purchase price of the tangible personal property is deemed to be the fair market value of the tangible personal property at the time of the sale.

(2) If a sale is deemed to have occurred under subsection (1) (a), the deemed purchaser may not claim an exemption under section 142 (1), (2) or (2.1).

(3) Tax payable under section 37 in accordance with this section must be paid on or before the last day of the month after the month in which the tangible personal property is used so that it ceases to be personal property at common law.

(4) Despite subsection (3), tax payable under section 37 in accordance with this section by a registrant must be paid on or before the prescribed date and in the prescribed manner.

(5) Subsection (1) does not apply if the tangible personal property becomes affixed machinery when the tangible personal property is used so that it ceases to be personal property at common law.

Division 10 — Tangible Personal Property Acquired by Small Seller

Tax on acquisition of eligible tangible personal property

89   (1) A small seller who purchases, at a sale in British Columbia, eligible tangible personal property for resale must pay tax imposed under section 37 [tax on purchase] on the purchase of the eligible tangible personal property as if the small seller were a purchaser of that eligible tangible personal property.

(2) Tangible personal property referred to in sections 141 (1) (a), (b) and (c) [exemptions in relation to industry and commerce] and 143 [exemption in relation to recording of motion picture or audio production] and in prescribed provisions of the regulations is not exempt from tax imposed under this Part when that tangible personal property is purchased by a small seller who must pay tax in accordance with subsection (1) of this section.

Tax on eligible tangible personal property brought into British Columbia

90   (1) Subject to subsection (2), this section applies to a small seller who

(a) brings or sends into British Columbia, or receives delivery of in British Columbia, eligible tangible personal property for resale, and

(b) does not pay tax under section 55 in relation to the eligible tangible personal property.

(2) This section does not apply to a person in relation to eligible tangible personal property if the person is required to pay tax or is exempt from tax under section 89 in relation to the eligible tangible personal property.

(3) A small seller to whom this section applies must pay tax imposed under section 49 on the eligible tangible personal property as if the small seller were a person to whom section 49 applies in relation to that eligible tangible personal property.

(4) Tangible personal property referred to in sections 141 (1) (a), (b) and (c) [exemption in relation to industry and commerce] and 143 [exemption in relation to recording of motion picture or audio production] and in prescribed provisions of the regulations is not exempt from tax imposed under this Part when the tangible personal property is brought or sent into British Columbia by, or delivered in British Columbia to, a small seller who must pay tax in accordance with subsection (3) of this section.

Exemption in relation to eligible tangible personal property purchased from small seller

91   If a purchaser purchases eligible tangible personal property from a small seller, the purchaser is exempt from tax imposed under section 37 [tax on purchase] on that purchase.

Division 11 — Energy Products

Tax on purchase of energy product

92   (1) A purchaser who purchases an energy product at a sale in British Columbia must pay to the government, for the raising of revenue for the purposes of the Innovative Clean Energy Fund special account established by the Special Accounts Appropriation and Control Act, tax at the rate of 0.4% of the purchase price of the energy product.

(2) If a collector sells an energy product at a sale in British Columbia to a person who alleges that the energy product is being purchased for resale, the person must nevertheless pay tax under subsection (1) as if the person were a purchaser and the collector must nevertheless levy and collect the tax under subsection (1) unless the collector obtains, at or before the time the tax is payable,

(a) that person's registration number, or

(b) if that person does not have a registration number, a declaration in a form acceptable to the director from that person.

Tax if energy product brought into British Columbia for use

93   (1) Subject to subsection (2), this section applies to a person in relation to an energy product if

(a) the person is a BC resident who brings or sends into British Columbia, or receives delivery of in British Columbia, an energy product for use or consumption

(i) by the BC resident,

(ii) by another person at the BC resident's expense,

(iii) by a principal for whom the BC resident acts as agent, or

(iv) by another person at the expense of a principal for whom the BC resident acts as agent,

(b) the person is a BC resident and a person who is not a BC resident brings or sends into British Columbia, or receives delivery of in British Columbia, an energy product for use or consumption

(i) by the BC resident, or

(ii) by the person who is not a BC resident, or by another person, at the BC resident's expense, or

(c) the person

(i) brings or sends into British Columbia, or receives delivery of in British Columbia, an energy product, and

(ii) uses the energy product in British Columbia in the course of the person's business, whether or not the business is carried on in British Columbia.

(2) This section does not apply to a person in relation to an energy product if the person is required to pay tax or is exempt from tax under section 92 in relation to the energy product.

(3) A person to whom this section applies must pay to the government, for the raising of revenue for the purposes of the Innovative Clean Energy Fund special account established by the Special Accounts Appropriation and Control Act, tax at the rate of 0.4% of the purchase price of the energy product.

(4) If a collector causes an energy product to be delivered in British Columbia to a person who alleges that the energy product is being purchased for resale, the person must nevertheless pay tax under subsection (3) as if the person were a person to whom this section applies and the collector must nevertheless levy and collect the tax under subsection (3) unless the collector obtains, at or before the time the tax is payable,

(a) that person's registration number, or

(b) if that person does not have a registration number, a declaration in a form acceptable to the director from that person.

Tax under this Division is additional tax

94   Tax imposed under this Division is in addition to any other tax payable under this Part in respect of the energy product.

Exemptions in relation to energy products

95   (1) Subject to subsection (1.1), fuel, as defined in the Motor Fuel Tax Act, is exempt from tax imposed under this Division.

(1.1) The exemption under subsection (1) does not apply to propane included within the definition of "energy product".

(2) A person is exempt from paying further tax under this Division in the period beginning on April 1 in one year and ending on March 31 in the next year if

(a) the person has already paid in that period at least $100 000 in tax payable under this Division,

(b) the person provides evidence satisfactory to the director that the person has paid at least $100 000 in accordance with paragraph (a), and

(c) the person receives written confirmation from the director that the person has paid at least $100 000 in accordance with paragraph (a).

(3) If a collector sells an energy product to a person who alleges that the person is exempt under subsection (2) from paying further tax under this Division, the person must nevertheless pay tax under this Division and the collector must nevertheless levy and collect the tax under this Division unless the collector obtains from that person, at or before the time the tax is payable, a copy of the written confirmation referred to in subsection (2) (c).

Refund of excess if maximum tax paid

96   If the director is satisfied that a person has paid more than the $100 000 in tax payable under this Division in the period described in section 95 (2), the director must refund that excess to the person.

Reporting requirements in relation to energy products

97   If requested by the director or if required under the regulations, a collector must report to the director the amounts of tax under this Division that were required to be collected in relation to the collector's sales of the energy product.

Division 12 — Other Taxes in Relation to Tangible Personal Property

Liquor sold under liquor permit

98   (1) If liquor is purchased for sale under a liquor permit, the holder of that permit or the agent of the holder must pay tax imposed under section 37 on the purchase of the liquor as if the holder of that permit or the agent of the holder were a purchaser of that liquor.

(2) If liquor is or is to be purchased for sale under a liquor permit, the holder of that permit or the agent of the holder must, at the time the permit is issued,

(a) declare the amount of the total proceeds expected from the sale of the liquor at the event that is the subject of the permit, and

(b) pay to the person issuing the permit an amount equal to the tax under section 37 that would be collectable under this Act based on the expected proceeds of the sales less the amount of tax payable in accordance with subsection (1) of this section.

(3) If the amount of tax payable under section 37 that is collectable by the holder of the permit exceeds the total of the amount paid by the holder of the permit under subsections (1) and (2) (b) of this section, the holder must

(a) remit to the government an amount equal to the amount of the excess, and

(b) file with the director a return at the time, in the manner and in a form specified by the director.

(4) An amount to be remitted under subsection (3) must be remitted to the government on or before the last day of the month after the month in which the liquor permit expires.

(5) If the director is satisfied that the amount of tax under section 37 collectable by the holder of the liquor permit on the actual sale of the liquor in respect of which payment was made under subsection (2) of this section is less than the amount paid under subsections (1) and (2), the director must refund to the holder an amount that

(a) is, subject to paragraph (b), equal to the amount of the difference less the amount of tax under subsection (1) for which the holder has obtained or is entitled to obtain a refund for returning liquor purchased for sale under the liquor permit, and

(b) does not exceed the amount paid under subsection (2).

Tax on acquisition of exclusive product by independent sales contractor

99   (1) An independent sales contractor who purchases an exclusive product at a sale in British Columbia from a direct seller must pay to the government tax at the rate of 7% of the direct seller's suggested retail price for the exclusive product.

(2) An independent sales contractor of a direct seller who purchases an exclusive product at a sale in British Columbia from another independent sales contractor of the direct seller must pay to the government tax at the rate of 7% of the direct seller's suggested retail price for the exclusive product.

(3) An independent sales contractor who brings or sends into British Columbia, or receives delivery of in British Columbia, an exclusive product acquired from a direct seller must pay to the government tax at the rate of 7% of the direct seller's suggested retail price for the exclusive product.

(4) An independent sales contractor of a direct seller who brings or sends into British Columbia, or receives delivery of in British Columbia, an exclusive product acquired from another independent sales contractor of the direct seller must pay to the government, by paying to the direct seller as agent of the government, tax at the rate of 7% of the direct seller's suggested retail price for the exclusive product.

(5) Subsection (3) or (4) does not apply to an independent sales contractor in relation to an exclusive product if

(a) the independent sales contractor must pay tax imposed under subsection (1) or (2) in relation to that exclusive product, or

(b) the independent sales contractor must pay tax imposed under Division 5 [Property Brought into British Columbia from Outside Canada] in relation to that exclusive product.

(6) Tangible personal property referred to in section 141 (1) (a), (b) and (c) and in prescribed provisions of the regulations is not exempt from tax imposed under this section when acquired by an independent sales contractor who must pay tax in accordance with this section.

(7) Tax payable under subsection (4) must be paid on or before the last day of the month after the month that includes the entry date of the exclusive product.

Tax on gift of vehicle, boat or aircraft given in British Columbia

100   (0.1) In this section, "charity" and "registrant" have the same meaning as in Part IX of the Excise Tax Act.

(1) If a person receives a gift of a vehicle, boat or aircraft and the gift is received in British Columbia, subject to subsections (2) and (3), the person must pay to the government tax at the applicable rate under subsection (4), (4.1), (6), (7) or (8).

(1.1) Subject to subsection (1.2), subsection (1.3) applies to a person who registers a vehicle under the vehicle registration legislation if

(a) the person received the vehicle in British Columbia as a gift on or after July 1, 2010 and before April 1, 2013, or

(b) the person received the vehicle outside British Columbia as a gift, the vehicle was brought or sent into British Columbia on or after July 1, 2010 and before April 1, 2013 and tax was not paid and is not payable under the Consumption Tax Rebate and Transition Act by that person in relation to the vehicle.

(1.2) Subsection (1.3) does not apply if any of the following apply in relation to the gift:

(a) the provision of the gift is a taxable supply under Part IX of the Excise Tax Act by a registrant;

(b) the provision of the gift is an exempt supply under Part IX of the Excise Tax Act by a registrant that is a charity;

(c) the donor who gave the gift acquired the vehicle in prescribed circumstances.

(1.3) A person to whom this subsection applies must pay to the government tax at the rate of 12% of the fair market value of the vehicle on the date the vehicle was received in British Columbia as a gift or on the entry date of the vehicle.

(2) A person is not required to pay tax under this section in respect of a vehicle, boat or aircraft if the person has paid tax in respect of the vehicle, boat or aircraft under section 49.

(3) This section does not apply in relation to a vehicle, boat or aircraft that is subject to tax or exempt from tax under Division 6 [Conveyances Used Interjurisdictionally] or 7 [Multijurisdictional Vehicles].

(4) Subject to subsections (4.1), (6), (7) and (8), the rate of tax payable under subsection (1) on a vehicle, boat or aircraft is 12% of the fair market value of the vehicle, boat or aircraft on the date the vehicle, boat or aircraft is received as a gift.

(4.1) Subject to subsections (6) to (8), the rate of tax payable under subsection (1) on a passenger vehicle is as follows:

(a) 12% of the fair market value of the passenger vehicle on the date the passenger vehicle is received as a gift, if the fair market value is less than $125 000;

(b) 15% of the fair market value of the passenger vehicle on the date the passenger vehicle is received as a gift, if the fair market value is $125 000 or more but less than $150 000;

(c) 20% of the fair market value of the passenger vehicle on the date the passenger vehicle is received as a gift, if the fair market value is $150 000 or more.

(5) Subsections (6) to (8) apply if any of the following apply in relation to the gift:

(a) the provision of the gift is a taxable supply under Part IX of the Excise Tax Act by a registrant;

(b) the provision of the gift is an exempt supply under Part IX of the Excise Tax Act by a registrant that is a charity;

(c) the donor who gave the gift acquired the vehicle, boat or aircraft in prescribed circumstances.

(6) Subject to subsections (7) and (8), the rate of tax payable under subsection (1) on a vehicle, boat or aircraft is 7% of the fair market value of the vehicle, boat or aircraft on the date the vehicle, boat or aircraft is received as a gift.

(7) The rate of tax payable under subsection (1) on a passenger vehicle, other than a passenger vehicle that is a zero-emission vehicle, is as follows:

(a) 7% of the fair market value of the passenger vehicle on the date the passenger vehicle is received as a gift, if the fair market value is less than $55 000;

(b) 8% of the fair market value of the passenger vehicle on the date the passenger vehicle is received as a gift, if the fair market value is $55 000 or more but less than $56 000;

(c) 9% of the fair market value of the passenger vehicle on the date the passenger vehicle is received as a gift, if the fair market value is $56 000 or more but less than $57 000;

(d) 10% of the fair market value of the passenger vehicle on the date the passenger vehicle is received as a gift, if the fair market value is $57 000 or more but less than $125 000;

(e) 15% of the fair market value of the passenger vehicle on the date the passenger vehicle is received as a gift, if the fair market value is $125 000 or more but less than $150 000;

(f) 20% of the fair market value of the passenger vehicle on the date the passenger vehicle is received as a gift, if the fair market value is $150 000 or more.

(8) The rate of tax payable under subsection (1) on a passenger vehicle that is a zero-emission vehicle is as follows:

(a) 7% of the fair market value of the zero-emission vehicle on the date the vehicle is received as a gift, if the fair market value is less than $75 000;

(b) 8% of the fair market value of the zero-emission vehicle on the date the vehicle is received as a gift, if the fair market value is $75 000 or more but less than $76 000;

(c) 9% of the fair market value of the zero-emission vehicle on the date the vehicle is received as a gift, if the fair market value is $76 000 or more but less than $77 000;

(d) 10% of the fair market value of the zero-emission vehicle on the date the vehicle is received as a gift, if the fair market value is $77 000 or more but less than $125 000;

(e) 15% of the fair market value of the zero-emission vehicle on the date the vehicle is received as a gift, if the fair market value is $125 000 or more but less than $150 000;

(f) 20% of the fair market value of the zero-emission vehicle on the date the vehicle is received as a gift, if the fair market value is $150 000 or more.

Tax on reusable containers

101   (1) Subject to subsection (3), a person who purchases a reusable container at a sale in British Columbia must pay to the government tax at the rate of 7% of the purchase price of the reusable container.

(2) Subject to subsections (3) and (4), a person who brings or sends into British Columbia, or receives delivery of in British Columbia, a reusable container must pay to the government tax at the rate of 7% of the purchase price of the reusable container.

(3) Subsection (1) or (2) applies to a person in relation to the reusable container if the person intends to sell a product that is packaged or delivered in or on the reusable container and

(a) the reusable container is subject to a deposit, credit, penalty or replacement charge to encourage its return for reuse as a container,

(b) the person retains an interest in the reusable container after the sale of the product,

(c) the reusable container, or a similar reusable container, is required to be returned to the person after the sale of the product, or

(d) the product is sold in a jurisdiction where the reusable container is subject to a regulatory or contractual scheme to recover the container for reuse by the person or by other participants in the scheme.

(4) Subsection (2) does not apply to a person in relation to a reusable container if the person is required to pay tax or is exempt from tax under subsection (1) in relation to that reusable container.

Tax on leased property occasionally supplied with operator

102   (1) A person, other than a person who has paid tax under section 82 [tax if property used for new purpose] or 83 [tax if change in use of property acquired for lease], who purchases tangible personal property exempt from tax under section 142 (4), or who brings or sends into British Columbia, or receives delivery of in British Columbia, tangible personal property exempt from tax under section 142 (5), must, when the property is, under an agreement, supplied with a person to operate it, pay to the government tax at the applicable rate under section 35 [rates of tax in relation to lease price] as if the price at which that property would have been leased had it been leased without supplying a person to operate it were the lease price of the tangible personal property.

(2) If

(a) a person, other than a person who has paid tax under section 82 or 83, purchases in British Columbia, brings or sends into British Columbia or receives delivery of in British Columbia tangible personal property exempt from tax under section 142 (1), (2) or (2.1),

(b) the only subsequent use of that tangible personal property, other than leasing it, is occasionally, under an agreement, supplying the property with a person to operate it, and

(c) the tangible personal property is capitalized as lease inventory in the person's business accounting records,

the person must, when the property is, under an agreement, supplied with a person to operate it, pay to the government tax at the applicable rate under section 35 as if the price at which that property would have been leased had it been leased without supplying a person to operate it were the lease price of the tangible personal property.

(3) Tax payable under subsection (1) or (2) must be paid on or before the prescribed date and in the prescribed manner.

Tax on subsequent purchase or lease after refund or credit

103   (1) In this section, "related individual" includes a sibling.

(2) If a purchaser is paid a refund or allowed a credit of tax paid under this Act in respect of tangible personal property that is returned or resold to the collector who sold it to the purchaser and that tangible personal property is subsequently purchased or leased by

(a) the purchaser,

(b) a related individual of the purchaser, or

(c) an associated corporation of the purchaser,

the person referred to in paragraph (a), (b) or (c), as the case may be, must pay to the government, in lieu of the tax payable, if any, under Division 2 or 3 of this Part in respect of that tangible personal property, tax equal to the tax that was refunded or credited to the purchaser.

(3) For the purposes of applying the other provisions of this Act in relation to a tax imposed under subsection (2),

(a) the tax is deemed to be a tax imposed under section 37,

(b) if the tangible personal property is leased, the time of entering into the lease is deemed to be the time of purchase,

(c) section 34 and Part 6 do not apply, and

(d) prescribed provisions of the regulations do not apply.

Part 4 — Taxes in Relation to Software

Application of this Part

104   This Part does not apply in relation to software that is subject to tax or is exempt from tax under Part 3 [Taxes in Relation to Tangible Personal Property].

Tax on software

105   (1) A purchaser in British Columbia who purchases software for use on or with an electronic device ordinarily situated in British Columbia must pay to the government tax at the rate of 7% of the purchase price of the software.

(2) Subsection (1) does not apply to a purchaser who must pay tax imposed under section 107 or 112 in respect of the software.

(3) If a collector sells software at a sale in British Columbia to a person who alleges that the person must pay tax under section 107 in relation to the software in accordance with section 107 (1) (b) (i), the person must nevertheless pay tax under subsection (1) of this section and the collector must nevertheless levy and collect the tax under subsection (1) unless the collector obtains from that person, at or before the time the tax is payable, a declaration in a form acceptable to the director.

Tax on use of software on device in British Columbia

106   (1) Subject to subsection (2), this section applies to a purchaser of software if

(a) the purchaser is a BC resident and the software is used, on or with an electronic device ordinarily situated in British Columbia,

(i) by the BC resident,

(ii) by another person at the BC resident's expense,

(iii) by a principal for whom the BC resident acts as agent, or

(iv) by another person at the expense of a principal for whom the BC resident acts as agent, or

(b) the purchaser is a non-resident and the software is used, on or with an electronic device ordinarily situated in British Columbia,

(i) by the non-resident,

(ii) by another person at the non-resident's expense,

(iii) by a principal for whom the non-resident acts as agent, or

(iv) by another person at the expense of a principal for whom the non-resident acts as agent.

(2) This section does not apply to a purchaser in relation to software if the purchaser must pay tax imposed under section 105, 107 or 112 in relation to the software.

(3) A purchaser to whom this section applies must pay to the government tax at the rate of 7% of the purchase price of the software.

(4) Tax payable under subsection (3) must be paid on or before the last day of the month after the month in which the software is first used as referred to in subsection (1) (a) or (b).

(5) Despite subsection (4), tax payable under subsection (3) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Tax on business use of software on devices in and outside British Columbia

107   (1) Subject to subsection (1.1), this section applies to a purchaser of software if

(a) the purchaser

(i) carries on business in British Columbia, or

(ii) enters British Columbia with the intention of carrying on business in British Columbia, and

(b) the purchaser

(i) is in British Columbia when the purchaser purchases the software and purchases the software for use, in the course of the purchaser's business, on or with an electronic device ordinarily situated in British Columbia and on or with an electronic device ordinarily situated outside British Columbia, or

(ii) in the course of the purchaser's business, uses the software or allows the software to be used on or with an electronic device ordinarily situated in British Columbia and on or with an electronic device ordinarily situated outside British Columbia.

(c) [Repealed 2013-1-225.]

(1.1) This section does not apply to a purchaser who must pay tax imposed under section 112 in respect of the software.

(2) A purchaser to whom this section applies must pay to the government tax on the software in the amount determined by the following formula:

amount = 7% × purchase price ×BC usage

total usage
where
purchase price = the purchase price of the software;
BC usage = the estimated use of the software in British Columbia during the prescribed period;
total usage = the estimated total use of the software during the prescribed period.

(2.1) For the purposes of subsection (2), the estimated use of the software in British Columbia must be determined by a method the director considers reasonable.

(3) Tax payable under subsection (2) must be paid,

(a) if subsection (1) (b) (i) applies to the purchaser in relation to the software, on or before the last day of the month after the month in which the software is purchased, and

(b) if subsection (1) (b) (ii) applies to the purchaser in relation to the software, on or before the last day of the month after the month in which the purchaser first uses that software or allows that software to be used as referred to in that subsection.

(4) Despite subsection (3), tax payable under subsection (2) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Adjustment of tax under section 107

108   (1) In this section:

"BC usage period" means the period prescribed for the purposes of the description of "BC usage" in section 107 (2);

"total usage period" means the period prescribed for the purposes of the description of "total usage" in section 107 (2).

(2) At the end of the BC usage period, a purchaser to whom section 107 applies must determine the following:

(a) the estimated use of the software in British Columbia during the BC usage period;

(b) the total use of the software during the total usage period;

(c) the amount determined by the formula in section 107 (2) using the use and total use determined under paragraphs (a) and (b) of this subsection instead of the estimated use under section 107.

(2.1) For the purposes of subsection (2), the estimated use of the software in British Columbia must be determined by a method the director considers reasonable.

(3) If the amount determined under subsection (2) (c) exceeds the amount determined under section 107 (2), the purchaser who is required to pay tax imposed under section 107 in respect of the software for the BC usage period must pay to the government tax equal to the amount of the excess.

(4) Tax payable under subsection (3) must be paid on or before the last day of the month after the month in which the BC usage ends.

(4.1) Despite subsection (4), tax payable under subsection (3) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

(5) If the director is satisfied that the amount determined under section 107 (2) based on an estimate exceeds the amount determined under subsection (2) (c) of this section, the director must refund to the purchaser who paid tax under section 107 the amount of the excess.

Tax if use of software changes

109   (1) If a person

(a) purchased software that is exempt from tax under this Act because the software was to be used for a particular purpose, and

(b) subsequently uses that software, or allows that software to be used, for a purpose other than

(i) the particular purpose, or

(ii) another purpose for which that software would be exempt from tax under this Act if that software were to be used for that purpose,

the person must pay to the government tax in accordance with whichever of section 105, 106 or 107 under which the person would have had to pay tax but for the exemption.

(2) Tax payable under subsection (1) must be paid on or before the last day of the month after the month in which the person first uses the software, or allows the software to be used, as referred to in subsection (1) (b).

(3) Despite subsection (2), tax payable under subsection (1) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Tax if conditions of exemption for software not maintained for specified period

109.1   (1) This section applies to a person in relation to software if

(a) the person used software that was exempt under a prescribed provision of the regulations from tax under this Act,

(b) the prescribed provision of the regulations requires specified conditions to be maintained for a specified period, and

(c) those conditions are not maintained for that period.

(2) A person to whom this section applies must pay to the government tax at the rate of 7% of the purchase price of the software.

(3) Tax payable under subsection (2) must be paid on or before the last day of the month after the month in which the conditions referred to in subsection (1) are not maintained.

(4) Despite subsection (3), tax payable under subsection (2) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Tax if change in use of resulting software, telecommunication service or tangible personal property

110   (1) If a person

(a) purchased software exempt from tax under section 113 (1) (a), and

(b) becomes, for any period, a user of the software, telecommunication service or tangible personal property to which the software referred to in paragraph (a) of this subsection is processed, fabricated or manufactured into, attached to or incorporated into, other than a user of that software who uses that software only for a purpose referred to in section 113 (2),

the person must pay to the government tax at the rate of 7% of the purchase price of the software.

(2) Tax payable under subsection (1) must be paid on or before the last day of the month after the month in which the person first becomes

(a) a user of the software first referred to in subsection (1) (b), or

(b) a user of the telecommunication service or tangible personal property referred to in subsection (1) (b).

(3) Despite subsection (2), tax payable under subsection (1) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Tax if change in use of software for which refund received under taxation agreement

111   (1) If a person

(a) received a refund of tax under section 155 [refund in accordance with Nisa'a Nation Taxation Agreement] or 156 [refund in accordance with treaty first nation tax treatment agreement] in relation to software, and

(b) subsequently uses that software, or allows that software to be used, for a purpose other than

(i) a purpose that would entitle the person to receive a refund of tax under section 155 or 156, or

(ii) another purpose for which that software would be exempt from tax under this Act if that software were to be used for that purpose,

the person must pay to the government tax on the purchase price of that software in accordance with whichever of section 105, 106 or 107 under which the person would have had to pay tax but for the exemption.

(2) Tax payable under subsection (1) must be paid on or before the last day of the month after the month in which the person first uses the software, or allows the software to be used, as referred to in subsection (1) (b).

Tax on purchase of software by small seller

112   (1) A small seller who purchases software for resale must pay to the government tax at the rate of 7% of the purchase price of the software.

(2) Software referred to in section 113 (1) (a) and (c) and in prescribed provisions of the regulations is not exempt from tax imposed under this Part when purchased by a small seller who must pay tax in accordance with subsection (1) of this section.

(3) The exemption set out in section 113 (2) does not apply to a small seller who must pay tax in accordance with subsection (1) of this section.

Exemptions in relation to software

113   (1) Subject to section 112 (2), the following are exempt from tax imposed under this Part:

(a) subject to subsection (3) of this section, software that is purchased for the purpose of being processed, fabricated or manufactured into, attached to or incorporated into

(i) other software for the purpose of retail sale,

(i.1) a telecommunication service for the purpose of retail sale, or

(ii) tangible personal property for the purpose of retail sale or lease;

(b) [Repealed 2013-1-232.]

(c) software purchased substantially for one or more of the following purposes:

(i) incorporating copies of the software into other software, a telecommunication service or tangible personal property for retail sale;

(ii) re-licensing copies of the software for retail sale;

(iii) a prescribed purpose,

if

(iv) under the terms of the licence governing the use of the software, the software must be used substantially for one or more of the purposes referred to in subparagraphs (i) to (iii), or

(v) the purchaser of the software, telecommunication service or tangible personal property has acquired all rights to the software, and the software is used substantially for one or more of the purposes referred to in subparagraphs (i) to (iii);

(d) software, other than prescribed software, that is purchased for the purpose of being incorporated into a prototype, or copies of the prototype made for a prescribed purpose, if the prototype is a result of research and development activities aimed at developing a new or improved product or a new or improved process.

(2) Subject to section 112 (3), a purchaser who purchases software is exempt from tax imposed under this Part on the purchase if that purchase is made for the sole purpose of selling to other persons that software.

(3) The exemption under subsection (1) (a) does not apply if the purchaser of the software that is purchased for the purpose of being processed, fabricated or manufactured into, attached to or incorporated into

(a) other software for the purpose of retail sale is to retain an interest in the other software after the retail sale,

(a.1) a telecommunication service for the purpose of retail sale is to retain an interest in the telecommunication service after the retail sale, or

(b) tangible personal property for the purpose of retail sale or lease is to retain an interest in the tangible personal property after the retail sale or lease.

Exemption in relation to software purchased from small seller

114   If a purchaser purchases software from a small seller, the purchaser is exempt from tax imposed under this Part on that purchase.

Part 5 — Taxes in Relation to Services

Division 1 — Services Related to Purchase

Definition

115   In this Division, "associate" includes an agent, partner, joint venturer, related individual and associated corporation.

Tax if contract for property conversion related to purchase

116   (1) In this section, "contract amount" means an amount payable under the contract referred to in subsection (2) (b) for or in relation to the resulting tangible personal property.

(2) This section applies to a purchaser who

(a) acquires tangible personal property

(i) from another person, or

(ii) through another person acting as agent of the purchaser, and

(b) within 180 days before or after acquiring the tangible personal property, enters into a contract with the other person or an associate of the person under which the original tangible personal property referred to in paragraph (a) is processed, fabricated or manufactured into, or attached to or incorporated into other tangible personal property by that other person or associate.

(3) A purchaser to whom this section applies must pay to the government tax at the rate of 7% of the contract amount.

(4) Tax payable under subsection (3) is in addition to tax payable on the original tangible personal property.

(5) [Repealed 2013-1-234.]

(6) Tax is not payable under this section on that portion of the contract amount on which tax is otherwise payable by the purchaser under this Act.

Tax if contract for modification of purchased property

117   (1) In this section:

"contract amount" means an amount payable under the contract referred to in subsection (2) for or in relation to the modification or processing referred to in subsection (2) (b);

"tax rate value",

(a) in relation to a passenger vehicle other than a modified business vehicle, means the total of the original purchase price of the passenger vehicle and the contract amount, and

(b) in relation to a modified business vehicle, means the total of the original purchase price of the modified business vehicle and the contract amount less the portion of that amount that can reasonably be attributed to the modifications referred to in paragraph (b) of the definition of "modified business vehicle".

(2) This section applies to a purchaser of tangible personal property if the purchaser enters into an agreement, with the seller of the property or an associate of the seller,

(a) that is

(i) part of the contract to acquire the tangible personal property, or

(ii) a separate contract entered into within 2 days before or after entering into the contract to acquire the tangible personal property, and

(b) under which the seller or an associate of the seller is to modify or process the tangible personal property.

(3) A purchaser to whom this section applies must pay to the government tax calculated as follows:

(a) if the tangible personal property referred to in subsection (2) is not a passenger vehicle, at the rate of 7% of the contract amount;

(b) if the tangible personal property referred to in subsection (2) is a passenger vehicle, other than a passenger vehicle that is a zero-emission vehicle, at the applicable rate as follows:

(i) 7% of the contract amount, if the tax rate value is less than $55 000;

(ii) 8% of the contract amount, if the tax rate value is $55 000 or more but less than $56 000;

(iii) 9% of the contract amount, if the tax rate value is $56 000 or more but less than $57 000;

(iv) 10% of the contract amount, if the tax rate value is $57 000 or more but less than $125 000;

(v) 15% of the contract amount, if the tax rate value is $125 000 or more but less than $150 000;

(vi) 20% of the contract amount, if the tax rate value is $150 000 or more;

(c) if the tangible personal property referred to in subsection (2) is a passenger vehicle that is a zero-emission vehicle, at the applicable rate as follows:

(i) 7% of the contract amount, if the tax rate value is less than $75 000;

(ii) 8% of the contract amount, if the tax rate value is $75 000 or more but less than $76 000;

(iii) 9% of the contract amount, if the tax rate value is $76 000 or more but less than $77 000;

(iv) 10% of the contract amount, if the tax rate value is $77 000 or more but less than $125 000;

(v) 15% of the contract amount, if the tax rate value is $125 000 or more but less than $150 000;

(vi) 20% of the contract amount, if the tax rate value is $150 000 or more.

(4) Tax is not payable under this section on that portion of the contract amount on which tax is otherwise payable by the purchaser under this Act.

Tax if resulting property used for new purpose

117.1   (1) In this section, "resulting tangible personal property" means tangible personal property in its resulting form after completion of a contract referred to in section 116 or 117.

(2) If a person

(a) was exempt, under section 118, from tax imposed under section 116 or 117 because the resulting tangible personal property was to be used for a particular purpose, and

(b) subsequently uses that resulting tangible personal property, or allows that resulting tangible personal property to be used, for a purpose other than

(i) the particular purpose, or

(ii) another purpose for which that resulting tangible personal property would be exempt from tax under section 116 or 117 if that property were to be used for that purpose,

the person must pay to the government tax in an amount equal to the amount of tax that would, but for section 118, have been payable under section 116 or 117.

(3) Tax payable under subsection (2) must be paid on or before the last day of the month after the month in which the person first uses the resulting tangible personal property, or allows the resulting tangible personal property to be used, as referred to in subsection (2) (b).

(4) Despite subsection (3), tax payable under subsection (2) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Exempt property

118   A purchaser is exempt from tax imposed under section 116 or 117 if the tangible personal property in its resulting form after completion of the contract referred to in the applicable section would be exempt from tax imposed under Part 3.

Refund if contract for property conversion not related to purchase

118.1   If the director is satisfied that a purchaser paid tax under section 116 (3) and that, at the time the tangible personal property referred to in section 116 (2) (a) was acquired, the purchaser did not intend to enter into the contract referred to in section 116 (2) (b), the director must refund to the purchaser the amount of tax paid under section 116 (3) in respect of that contract.

Division 2 — Related Services in Relation to Tangible Personal Property

Tax on purchase of related service provided in British Columbia

119   (1) A purchaser of a related service provided or to be provided in British Columbia must pay to the government tax at the rate of 7% of the purchase price of the related service.

(2) If a collector sells a related service provided or to be provided in British Columbia to a person who alleges that the person is exempt under section 121 (2) or under prescribed provisions of the regulations from paying the tax under subsection (1) of this section, the person must nevertheless pay tax under subsection (1) and the collector must nevertheless levy and collect the tax under subsection (1) unless the collector obtains from that person, at or before the time the tax is payable,

(a) a declaration in a form acceptable to the director, if required by the regulations,

(b) any information or document required by the regulations, and

(c) any information or document required by the director.

Tax if related service provided outside British Columbia

120   (1) This section applies to a person who

(a) resides, ordinarily resides or carries on business in British Columbia,

(b) takes or sends tangible personal property out of British Columbia

(i) primarily for the purpose of having a related service provided in respect of the property, and

(ii) has the related service provided in respect of the property, and

(c) subsequently brings or sends into British Columbia, or receives delivery of in British Columbia, the tangible personal property referred to in paragraph (b) for use or consumption

(i) by the person,

(ii) by another person at the first person's expense,

(iii) by a principal for whom the first person acts as agent, or

(iv) by another person at the expense of a principal for whom the first person acts as agent.

(2) A person to whom this section applies must pay to the government tax in respect of the related service at a rate of 7% of the purchase price of that related service.

(3) Tax payable under subsection (2) must be paid on or before the last day of the month after the month in which the person subsequently brings or sends into British Columbia, or receives delivery of in British Columbia, the tangible personal property.

(4) Despite subsection (3), tax payable under subsection (2) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Tax if change in use of related service

120.1   (1) If a person

(a) purchased a related service that was exempt from tax under this Act because the related service was to be used for a particular purpose, and

(b) subsequently uses that related service, or allows that related service to be used, for a purpose other than

(i) the particular purpose, or

(ii) another purpose for which that related service would be exempt from tax under this Act if that related service were to be used for that purpose,

the person must pay to the government tax at the rate of 7% of the purchase price of that related service.

(2) Tax payable under subsection (1) must be paid on or before the last day of the month after the month in which the person subsequently uses the related service, or allows the related service to be used, as referred to in subsection (1) (b).

(3) Despite subsection (2), tax payable under subsection (1) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Exemptions from tax under this Division

121   (1) A person who takes or sends tangible personal property out of British Columbia, primarily for the purpose of using the tangible personal property outside British Columbia for a period of time, is exempt from tax under section 120 in respect of any related service provided in respect of that tangible personal property while it is outside British Columbia during that period.

(2) Subject to section 135 [exemptions not applicable to small seller], a purchaser who purchases a related service is exempt from tax imposed under this Division on the purchase if that purchase is made for the purpose only of selling the related service to other persons.

Division 3 — Accommodation

Tax on accommodation

122   A purchaser of accommodation in British Columbia must pay to the government tax at the rate of 8% of the purchase price of the accommodation.

Tax on accommodation in designated accommodation area

123   (1) If accommodation is purchased in a designated accommodation area, the purchaser must pay to the designated recipient, by paying to the government as agent of the designated recipient, tax at the prescribed rate on the purchase price of the accommodation.

(2) The maximum rate of tax that may be imposed under this section is 3% of the purchase price of the accommodation.

(3) [Repealed 2013-1-242.]

Transition — application of section 123 if change in designation status or tax rate

123.01   (1) If accommodation is purchased in an area before the area becomes a designated accommodation area, section 123 applies in relation to the purchase, but only in respect of any consideration that

(a) becomes due on or after the date the area becomes a designated accommodation area, and

(b) has not been paid before that date.

(2) If accommodation is purchased in a designated accommodation area before the area ceases to be a designated accommodation area, section 123 applies in relation to the purchase, except in respect of any consideration that

(a) becomes due on or after the date the area ceases to be a designated accommodation area, and

(b) has not been paid before that date.

(3) If there is a change in the prescribed rate of tax that applies to accommodation purchased in a designated accommodation area, the new rate of tax applies to accommodation purchased, before the new rate of tax takes effect, in the designated accommodation area, but only in respect of any consideration that

(a) becomes due on or after the date the new rate of tax takes effect, and

(b) has not been paid before that date.

Obligation to pay and collect tax on accommodation purchased for resale

123.1   If a collector sells accommodation at a sale in British Columbia to a person who alleges that the accommodation is being purchased for resale, the person must nevertheless pay tax under sections 122 and 123 as if the person were a purchaser and the collector must nevertheless levy and collect the tax under sections 122 and 123 unless the collector obtains, at or before the time the tax is payable,

(a) that person's registration number, or

(b) if that person does not have a registration number, a declaration in a form acceptable to the director from that person.

Tax if change in use of accommodation purchased for resale

123.2   (1) If a person purchased accommodation in British Columbia for resale and becomes, for any period, a user of that accommodation, the person must pay to the government tax at the rate of 8% of the purchase price of the accommodation.

(2) Subject to subsection (4), subsection (3) applies to a person in respect of accommodation if

(a) the person purchased accommodation in British Columbia for resale,

(b) the person becomes, for any period, a user of that accommodation, and

(c) at the time the person becomes a user of that accommodation, the accommodation is in a designated accommodation area.

(3) A person to whom this subsection applies must pay to the designated recipient, by paying to the government as agent of the designated recipient, tax on the purchase price of the accommodation at the rate prescribed for the purposes of section 123 (1) for accommodation purchased in the designated accommodation area.

(4) Subsections (1) and (3) do not apply to a person if, when the person becomes a user of the accommodation, the accommodation is used for a purpose for which the accommodation would have been exempt from tax under this Act if the accommodation were to be used for that purpose when the person purchased that accommodation.

(5) Tax payable under subsection (1) or (3) must be paid on or before the last day of the month after the month in which the person first becomes a user of the accommodation.

(6) Despite subsection (5), tax payable under subsection (1) or (3) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Tax if accommodation used for new purpose

123.3   (1) If a person

(a) purchased accommodation in British Columbia that was exempt from tax under this Act because the accommodation was to be used for a particular purpose, and

(b) subsequently uses that accommodation, or allows that accommodation to be used, for a purpose other than

(i) the particular purpose, or

(ii) another purpose for which that accommodation would be exempt from tax under this Act if that accommodation were to be used for that purpose,

the person must pay to the government tax at the rate of 8% of the purchase price of the accommodation.

(2) Subsection (3) applies to a person in respect of accommodation if

(a) the person purchased accommodation in British Columbia that was exempt from tax under this Act because the accommodation was to be used for a particular purpose,

(b) the person subsequently uses that accommodation, or allows that accommodation to be used, for a purpose other than

(i) the particular purpose, or

(ii) another purpose for which that accommodation would be exempt from tax under this Act if that accommodation were to be used for that purpose, and

(c) at the time the person uses that accommodation, or allows that accommodation to be used, as referred to in paragraph (b) of this subsection, the accommodation is in a designated accommodation area.

(3) A person to whom this subsection applies must pay to the designated recipient, by paying to the government as agent of the designated recipient, tax on the purchase price of the accommodation at the rate prescribed for the purposes of section 123 (1) for accommodation purchased in the designated accommodation area.

(4) Tax payable under subsection (1) or (3) must be paid on or before the last day of the month after the month in which the person first uses the accommodation, or allows the accommodation to be used, as referred to in subsection (1) (b) or (2) (b).

(5) Despite subsection (4), tax payable under subsection (1) or (3) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Refund in relation to new designated accommodation area

124   (1) If the director is satisfied that

(a) a purchaser purchased accommodation in an area that is or has become a designated accommodation area,

(b) in relation to the purchase, the purchaser

(i) received a written confirmation of reservation,

(ii) entered into a written contract, or

(iii) made a deposit of money,

(c) the purchase is for a specified number of days of accommodation that are set out in the confirmation or contract or covered by the deposit, and

(d) the confirmation, contract or deposit was received, entered into or made before the area became a designated accommodation area,

the director must refund to the purchaser, in accordance with subsection (2), the tax paid under section 123.

(2) The amount of the refund under subsection (1) is equal to the amount of tax paid under section 123 on the purchase price of the accommodation for each of the specified number of days.

Refund in relation to increase in tax rate

124.01   (1) If the director is satisfied that

(a) a purchaser purchased accommodation in a designated accommodation area,

(b) in relation to the purchase, the purchaser

(i) received a written confirmation of reservation,

(ii) entered into a written contract, or

(iii) made a deposit of money,

(c) the purchase is for a specified number of days of accommodation that are set out in the confirmation or contract or covered by the deposit, and

(d) an increase in the prescribed rate of tax that applies to accommodation purchased in the designated accommodation area took effect after the confirmation, contract or deposit was received, entered into or made,

the director must refund to the purchaser, in accordance with subsection (2), the tax paid under section 123.

(2) The amount of the refund under subsection (1) is equal to the difference between

(a) the amount of tax paid under section 123 on the purchase price of the accommodation for each of the specified number of days, and

(b) the amount of tax that would have been payable under section 123 on the purchase price of the accommodation for each of the specified number of days had the rate of tax not been increased.

Payment into consolidated revenue fund

124.1   Despite the Financial Administration Act, any tax paid under section 123 (1), 123.2 (3) or 123.3 (3) and received by the government must be paid into the consolidated revenue fund.

Payment to designated recipient

125   (1) The director must pay from the consolidated revenue fund to the designated recipient amounts equal to the total of

(a) all amounts of tax imposed under sections 123, 123.2 (3) and 123.3 (3) in respect of accommodation in the designated accommodation area that are remitted or paid to the government, and

(b) all amounts of penalties imposed under section 203 that

(i) are in relation to tax under section 123 in respect of accommodation in the designated accommodation area that is not levied as required under this Act, and

(ii) are paid to the government,

less any amounts deducted under subsections (3) and (4) of this section.

(2) In relation to any money paid under subsection (1) to a designated recipient, the designated recipient

(a) must not spend the money for a purpose other than a prescribed purpose, subject to subsection (9), and

(b) must account to the minister for its expenditure at the time and in the manner specified by the minister.

(3) The director may deduct from a payment under subsection (1) to a designated recipient a fee to recover the additional costs to the government of administering and enforcing the tax imposed under sections 123, 123.2 (3) and 123.3 (3).

(4) The director may deduct from a payment under subsection (1) to a designated recipient an amount equal to an amount of tax under sections 123, 123.2 (3) and 123.3 (3) that is paid or remitted to the government and is refunded by the director to a purchaser or collector.

(5) Section 27 (1) (a) [regulation of expenditure] of the Financial Administration Act does not apply to an appropriation under subsection (1) or (11) of this section.

(6) A designated recipient must not voluntarily dissolve, or liquidate and dissolve, under the Societies Act without first notifying the director regarding the pending dissolution or liquidation.

(7) A person who applies for court-ordered liquidation and dissolution under section 130 of the Societies Act must notify the director of the application.

(8) Despite subsection (1), the director may withhold a payment under that subsection to a designated recipient if any of the following applies:

(a) the designated recipient has been liquidated or has been dissolved and not restored;

(b) the designated recipient is a society that has not filed an annual report with the registrar as required under section 73 of the Societies Act;

(c) the director has received notice, or otherwise has reason to believe, that the designated recipient may be dissolved or liquidated.

(9) Despite section 124 (2) of the Societies Act, a designated recipient may, before the designated recipient dissolves or is liquidated, transfer to the government any unspent money paid to the designated recipient under subsection (1) of this section.

(10) Despite the Financial Administration Act, any money transferred to the government under subsection (9) must be paid into the consolidated revenue fund.

(11) If

(a) a designated recipient is liquidated or is dissolved and not restored, and

(b) within 2 years after the date of the dissolution or liquidation, a new municipality, regional district or eligible entity is designated as the designated recipient in relation to the designated accommodation area,

the director must pay to the new designated recipient any payments withheld under subsection (8) and any money transferred to the government by the previous designated recipient under subsection (9).

(12) If a new municipality, regional district or eligible entity has not been designated as the designated recipient in relation to the designated accommodation area within 2 years of the date of dissolution or liquidation of the previous designated recipient, then any payments withheld by the director under subsection (8) and any money transferred to the government by the previous designated recipient under subsection (9) vest in the government.

(13) A payment withheld under subsection (8) or money transferred to the government under subsection (9) is not the money or property of the designated recipient from which it is withheld or from which it is transferred.

Division 4 — Legal Services

Tax if legal services provided in British Columbia

126   (1) If the purchaser or recipient of legal services provided in British Columbia resides, ordinarily resides or carries on business in British Columbia, the purchaser must pay to the government tax on the provision of the legal services at the rate of 7% of the purchase price of the legal services.

(2) If neither the purchaser nor the recipient of legal services provided in British Columbia resides, ordinarily resides or carries on business in British Columbia, the purchaser must pay to the government tax on the provision of the legal services at the rate of 7% of the purchase price of the legal services if the legal services are in relation to one or more of the following:

(a) real property situated in British Columbia;

(b) tangible personal property, within the meaning of paragraph (a) of the definition of "tangible personal property", that is, or that is contemplated to be,

(i) ordinarily situated in British Columbia, or

(ii) delivered in British Columbia;

(c) property, other than that referred to in paragraphs (a) and (b), that is, or is contemplated to be, owned, possessed or used in British Columbia;

(d) a right to use property referred to in paragraph (c) that is, or is contemplated to be, used in British Columbia;

(e) a court or any other proceeding in British Columbia or a possible such proceeding;

(f) the incorporation or contemplated incorporation of a corporation under the Business Corporations Act or the Societies Act, or the registration or contemplated registration of a corporation

(i) as an extraprovincial company under the Business Corporations Act, or

(ii) under Division 2 of Part 11 of the Societies Act;

(g) any other matter that relates to British Columbia and is prescribed for the purposes of this section.

Tax if legal services provided to British Columbia resident

127   (1) A person who

(a) resides, ordinarily resides or carries on business in British Columbia, and

(b) is the purchaser of legal services provided outside British Columbia that relate to British Columbia

must pay to the government tax in respect of the legal services at the rate of 7% of the purchase price of the legal services.

(2) For the purposes of subsection (1), legal services relate to British Columbia if they relate to any of the following:

(a) a matter referred to in section 126 (2) (a) to (g);

(b) a matter that involves the interpretation or application of an enactment as defined in the Interpretation Act or a former or proposed such enactment;

(c) a matter that involves the interpretation or application of an enactment, or a former or proposed enactment, of a jurisdiction other than British Columbia, if the matter is in relation to

(i) a physical or legal presence in British Columbia or a contemplated such presence,

(ii) an activity in British Columbia or a contemplated such activity, or

(iii) a transaction in British Columbia or a contemplated such transaction;

(d) a matter that involves the analysis or application of any law other than that referred to in paragraphs (b) and (c), if the matter is in relation to

(i) a physical or legal presence in British Columbia or a contemplated such presence,

(ii) an activity in British Columbia or a contemplated such activity, or

(iii) a transaction in British Columbia or a contemplated such transaction;

(e) a contract or covenant, or a contemplated contract or covenant, that is in relation to

(i) a physical or legal presence in British Columbia or a contemplated such presence,

(ii) an activity in British Columbia or a contemplated such activity, or

(iii) a transaction in British Columbia or a contemplated such transaction.

(3) A person referred to in subsection (1) is exempt from tax under that subsection in relation to that portion of the purchase price which is for legal services that relate to a jurisdiction other than British Columbia if

(a) the person resides, ordinarily resides or carries on business outside British Columbia as well as in British Columbia, and

(b) part of the legal services referred to in subsection (1) relates to a jurisdiction other than British Columbia in the same manner as legal services relate to British Columbia within the meaning of subsection (2).

(4) For the purposes of subsection (3), the person referred to in that subsection must

(a) make a reasonable estimate, subject to the regulations, of that portion of the purchase price that relates to legal services referred to in subsection (3) (b),

(b) make and retain a record of the estimate and the basis on which it is made, and

(c) if a collector is required by this Act to collect the tax payable, provide a copy of the record to the collector.

Exemption in relation to legal aid

128   Legal services provided to an individual are exempt from tax under this Division

(a) to the extent that the purchase price for the services is paid by the Legal Services Society, or by a funded agency within the meaning of the Legal Services Society Act, for the purposes of section 9 of that Act, and

(b) to the extent that the purchase price for the services is paid by the individual, if the purchase price of the services is paid partly by that individual and partly by the Legal Services Society, or by a funded agency within the meaning of the Legal Services Society Act, for the purposes of section 9 of that Act.

Deemed references if person providing legal services is partner or employee

129   If the person providing legal services does so as a partner in a partnership or as an employee of an individual, partnership or corporation, a reference in this Act to that person is deemed to be a reference to the individual, partnership or corporation.

Division 5 — Telecommunication Services

Tax on telecommunication service

130   (1) A purchaser of a telecommunication service must pay to the government tax on the provision of the telecommunication service at the rate of 7% of the purchase price of that telecommunication service.

(1.1) Subsection (1) of this section does not apply to a purchaser of a telecommunication service if the purchaser must pay tax under section 130.1 in relation to the telecommunication service.

(2) Subject to section 132, subsection (1) of this section does not apply to a purchaser of a dedicated telecommunication service if the purchaser must pay tax under section 131 in relation to the dedicated telecommunication service.

(2.1) If a collector sells a telecommunication service to a person who alleges that the person must pay tax under section 130.1 in relation to the telecommunication service, the person must nevertheless pay tax under subsection (1) of this section and the collector must nevertheless levy and collect the tax under subsection (1) unless the collector obtains from that person, at the time the tax is payable,

(a) that person's registration number or, if that person does not have a registration number, a declaration in a form acceptable to the director from that person, and

(b) any information or document required by the director.

(3) If a collector sells a telecommunication service to a person who alleges that the person is exempt under section 134 or 134.2 or under prescribed provisions of the regulations from paying the tax under subsection (1) of this section, the person must nevertheless pay tax under subsection (1) and the collector must nevertheless levy and collect the tax under subsection (1) unless the collector obtains from that person, at or before the time the tax is payable,

(a) a declaration in a form acceptable to the director, if required by the regulations,

(b) any information or document required by the regulations, and

(c) any information or document required by the director.

Tax on telecommunication service purchased substantially for resale

130.1   (1) A purchaser whose primary business is selling or providing telecommunication services and who purchases a telecommunication service for the purpose of selling or providing to other persons more than 90% of the telecommunication service must pay to the government tax at the rate of 7% of the amount equal to the portion of the purchase price of the telecommunication service that is attributable to the portion of the telecommunication service that is purchased other than for the purpose of selling or providing to other persons that telecommunication service.

(2) Tax payable under subsection (1) must be paid on or before the last day of the month after the month in which the telecommunication service is purchased.

(3) Despite subsection (2), tax payable under subsection (1) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Additional tax on telecommunication service purchased substantially for resale

130.2   (1) This section applies to a purchaser of a telecommunication service if

(a) the purchaser must pay tax under section 130.1 in relation to the telecommunication service, and

(b) at the end of a month, the portion of the telecommunication service that is stored, kept or retained by the purchaser for the purpose of selling or providing to other persons that telecommunication service or that has been sold or provided to other persons by the purchaser is more than 90% of that telecommunication service but less than the portion of that telecommunication service, used in calculating the tax payable under section 130.1 (1), that was purchased for the purpose of selling or providing to other persons that telecommunication service.

(2) A purchaser to whom this section applies must pay to the government tax at the rate of 7% of the amount equal to the purchase price of the telecommunication service less the portion of the purchase price of the telecommunication service that is attributable to the portion of the telecommunication service that is stored, kept or retained by the purchaser for the purpose of selling or providing to other persons that telecommunication service or that has been sold or provided to other persons by the purchaser.

(3) The amount of tax payable under subsection (2) by a purchaser in relation to the telecommunication service is reduced by the amount of tax previously paid under that subsection and section 130.1 by the purchaser in relation to that telecommunication service.

(4) Tax payable under subsection (2) must be paid on or before the last day of the month after the month referred to in subsection (1) (b) in relation to the purchaser of the telecommunication service.

(5) Despite subsection (4), tax payable under subsection (2) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Tax on telecommunication service if no longer substantially for resale

130.3   (1) This section applies to a purchaser of a telecommunication service if

(a) the purchaser must pay tax under section 130.1 in relation to the telecommunication service, and

(b) at the end of a month, 90% or less of the telecommunication service is stored, kept or retained by the purchaser for the purpose of selling or providing to other persons that telecommunication service or has been sold to other persons by the purchaser.

(2) A purchaser to whom this section applies must pay to the government tax at the rate of 7% of the purchase price of the telecommunication service.

(3) The amount of tax payable under subsection (2) by a purchaser in relation to the telecommunication service is reduced by the amount of tax paid under sections 130.1 and 130.2 by the purchaser in relation to that telecommunication service.

(4) Tax payable under subsection (2) must be paid on or before the last day of the month after the month referred to in subsection (1) (b) in relation to the purchaser of the telecommunication service.

(5) Despite subsection (4), tax payable under subsection (2) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Tax on dedicated telecommunication service

131   (1) A purchaser of a dedicated telecommunication service provided in British Columbia must pay to the government tax calculated in accordance with subsection (2).

(2) The tax payable under subsection (1) must be calculated in accordance with the following formula:

tax = 7% × purchase price ×BC distance

total distance
where
purchase price = the purchase price of the dedicated telecommunication service;
BC distance = the portion of the distances comprising the total distance that is within British Columbia;
total distance = whichever of the following is applicable:
(a)if the dedicated telecommunication system does not include an electronic device that is a satellite, the total of the distances, measured in a direct line, between electronic devices that are connected to the system, with the distance between any 2 electronic devices connected to the system included only once in the calculation of total distance;
(b)if the dedicated telecommunication system does include an electronic device that is a satellite, the total of the distances, measured in a direct line, between electronic devices that are connected to the system but that are not satellites, with the distance between any 2 of these electronic devices included only once in the calculation of total distance.

Calculation if telecommunication only partly through dedicated system

132   (1) This section applies if

(a) a person purchases a telecommunication service for the purposes of sending from British Columbia or receiving in British Columbia a telecommunication, and

(b) the telecommunication is effected in part through a dedicated telecommunication system and in part through a telecommunication system that is not a dedicated telecommunication system.

(2) The tax payable by the purchaser on the provision of the telecommunication service referred to in subsection (1) must be calculated as follows:

(a) the tax payable on the portion of the purchase price that is attributable to the dedicated telecommunication system must be calculated in accordance with section 131 (2);

(b) the tax payable on the portion of the purchase price that is attributable to a telecommunication system that is not a dedicated telecommunication system must be calculated in accordance with section 130.

(3) If the purchase price for a telecommunication service is only partly payable for a dedicated telecommunication service, for the purposes of subsection (2), the director may determine the portion of the purchase price that is attributable to the dedicated telecommunication system.

Tax if telecommunication service used for new purpose

132.1   (1) If a person

(a) purchased a telecommunication service that was exempt from tax under this Act because the telecommunication service was to be used for a particular purpose, and

(b) subsequently uses that telecommunication service, or allows that telecommunication service to be used, for a purpose other than

(i) the particular purpose, or

(ii) another purpose for which that telecommunication service would be exempt from tax under this Act if that telecommunication service were to be used for that purpose,

the person must pay to the government tax at the rate of 7% of the purchase price of that telecommunication service.

(2) Tax payable under subsection (1) must be paid on or before the last day of the month after the month in which the person first uses the telecommunication service, or allows the telecommunication service to be used, as referred to in subsection (1) (b).

(3) Despite subsection (2), tax payable under subsection (1) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Tax if motion picture exhibited

133   (1) A person

(a) who purchased exempt from tax under section 134.2 (2) (b) (ii) a telecommunication service in respect of a recording of a motion picture, and

(b) who exhibits the motion picture in a movie theatre or other public venue

must pay to the government tax in an amount equal to the amount of tax under this Act that would have otherwise been payable if the person had purchased the right or authority to exhibit the motion picture from a willing seller acting in good faith in an arm's length transaction in the open market.

(2) Tax payable under subsection (1) must be paid on or before the last day of the month after the month in which the motion picture is exhibited.

(3) Despite subsection (2), tax payable under subsection (1) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Exemption if telecommunication service purchased for resale

134   Subject to section 135, a purchaser who purchases a telecommunication service is exempt from tax imposed under this Division on that purchase if the purchase is made solely for the purpose of selling or providing to other persons that telecommunication service.

Exemption for activities outside British Columbia in relation to telecommunication

134.1   The sending or receiving of a telecommunication by means of an electronic device that is ordinarily situated in British Columbia is exempt from tax imposed under this Division if

(a) the telecommunication originates outside British Columbia and is received outside British Columbia, and

(b) any charges in respect of the telecommunication are segregated on the invoice provided to the purchaser of the telecommunication service.

Exemption in relation to copying content of telecommunication service or broadcasting

134.2   (1) In this section, "content", in relation to a telecommunication service, means a telecommunication referred to in paragraph (d) (i) to (v) of the definition of "telecommunication service".

(2) Subject to section 135, a telecommunication service described in paragraph (d) of the definition of "telecommunication service" is exempt from tax imposed under this Division if the telecommunication service is purchased for the purpose of

(a) public broadcast by a licensed radio or television broadcaster,

(b) making copies of the content of the telecommunication service for

(i) public broadcast by a licensed radio or television broadcaster,

(ii) public exhibition in a movie theatre or other public venue, or

(iii) sale or lease,

(c) copying or incorporating the content of the telecommunication service into another telecommunication service for

(i) public broadcast by a licensed radio or television broadcaster,

(ii) public exhibition in a movie theatre or other public venue, or

(iii) sale or lease, or

(d) copying or incorporating the content of the telecommunication service into tangible personal property or software for sale or lease.

Division 5.1Online Marketplace Services

Tax if online marketplace service provided in British Columbia

134.3   (1) A purchaser of an online marketplace service provided or to be provided

(a) in British Columbia, or

(b) in respect of accommodation in British Columbia

must pay to the government tax at the rate of 7% of the purchase price of the online marketplace service.

(2) A purchaser of an online marketplace service

(a) provided or to be provided to a person in British Columbia, and

(b) related to

(i) the sale, provision or lease of tangible personal property or the sale or provision of taxable services, other than accommodation and legal services, for use or consumption in British Columbia, or

(ii) the sale or provision of software for use on or with an electronic device ordinarily situated in British Columbia

must pay to the government tax at the rate of 7% of the purchase price of the online marketplace service.

(3) The amount of tax payable under subsection (1) or (2) in relation to an online marketplace service is reduced by the amount of tax otherwise payable or previously paid under this Act in relation to the online marketplace service and for which the person has not obtained and is not entitled to obtain a refund or credit under this Act.

(4) If a collector sells an online marketplace service to a person who alleges that the person is exempt under section 134.4 or under prescribed provisions of the regulations from paying the tax under subsection (1) or (2) of this section, the person must nevertheless pay tax under subsection (1) or (2) and the collector must nevertheless levy and collect the tax under subsection (1) or (2) unless the collector obtains from that person, at or before the time the tax is payable,

(a) a declaration in a form acceptable to the director, if required by the regulations,

(b) any information or document required by the regulations, and

(c) any information or document required by the director.

Exemption if online marketplace service purchased for resale

134.4   Subject to section 135, a purchaser who purchases an online marketplace service is exempt from tax imposed under this Division on that purchase if the purchase is made solely for the purpose of selling or providing to other persons that online marketplace service.

Tax if online marketplace service used for new purpose

134.5   (1) If a person

(a) purchased an online marketplace service that was exempt from tax under this Act because the online marketplace service was to be used for a particular purpose, and

(b) subsequently uses that online marketplace service, or allows that online marketplace service to be used, for a purpose other than

(i) the particular purpose, or

(ii) another purpose for which that online marketplace service would be exempt from tax under this Act if that online marketplace service were to be used for that purpose,

the person must pay to the government tax at the rate of 7% of the purchase price of that online marketplace service.

(2) Tax payable under subsection (1) must be paid on or before the last day of the month after the month in which the person first uses the online marketplace service, or allows the online marketplace service to be used, for a purpose described in subsection (1) (b).

(3) Despite subsection (2), tax payable under subsection (1) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Division 6 — Exemptions in Relation to Taxable Service Purchased by or from Small Seller

Exemptions not applicable to small seller

135   The exemptions set out in sections 121 (2) [exemption if related service purchased for resale], 134 [exemption if telecommunication service purchased for resale], 134.2 [exemption in relation to copying content of telecommunication service or broadcasting] and 134.4 [exemption if online marketplace service purchased for resale] and under prescribed provisions of the regulations do not apply in relation to a small seller who purchases a taxable service.

Exemption in relation to taxable service purchased from small seller

136   If a purchaser purchases a taxable service, other than accommodation, from a small seller, the person is exempt from tax imposed under Divisions 1, 2, 4 and 5 on that purchase.

Part 6 — Exemptions

Taxable component sold with non-taxable component for single price

137   Subject to the regulations, a taxable component is exempt from tax imposed under this Act if

(a) the taxable component is sold with a non-taxable component for a single price,

(b) the fair market value of the taxable component is

(i) $50 or less, and

(ii) 10% or less of the fair market value of all the taxable and non-taxable components sold for the single price,

(c) the taxable component is

(i) prepackaged with the non-taxable component, or

(ii) not ordinarily sold by the seller separately from the non-taxable component,

(d) the taxable component is not being provided by way of promotional distribution, and

(e) none of the taxable components sold with the non-taxable components for a single price are liquor, tobacco, a soda beverage, a telecommunication service or legal services.

Exemption for minimal sale of tangible personal property

138   Sales of tangible personal property at a purchase price of less than $0.15 are exempt from tax imposed under Part 3.

Exemptions in relation to food

139   The following are exempt from tax imposed under Part 3:

(a) food products for human consumption, other than the following:

(i) beverages dispensed by a vending machine or similar equipment, unless the machine or equipment does not dispense soda beverages;

(ii) beverages dispensed by a soda fountain, soda gun or similar equipment;

(iii) soda beverages;

(iv) prescribed food products;

(b) water in liquid or frozen form, unless it is a beverage described in paragraph (a).

Exemption in relation to fuel

140   Fuel, as defined in the Motor Fuel Tax Act, is exempt from tax imposed under Divisions 2 to 10 and 12 of Part 3 of this Act.

Exemption in relation to electricity

140.1   Electricity is exempt from tax imposed under Part 3.

Exemptions in relation to industry and commerce

141   (1) Subject to subsection (1.1) and sections 89 (2) [tax on acquisition of eligible tangible personal property] and 99 (6) [tax on acquisition of exclusive product by independent sales contractor], the following are exempt from tax imposed under Part 3, other than Division 9 [Change in Use] of that Part:

(a) subject to subsections (2) to (4) of this section, tangible personal property that is purchased in British Columbia, brought or sent into British Columbia or delivered in British Columbia

(i) solely for the purpose of being processed, fabricated or manufactured into, attached to or incorporated into, or

(ii) solely for the purpose of packaging

other tangible personal property, other than prescribed tangible personal property, for the purpose of retail sale or lease;

(b) labels that are purchased in British Columbia, brought or sent into British Columbia or delivered in British Columbia solely for the purpose of being attached to tangible personal property held for sale or lease and that are intended to remain with the tangible personal property after it is sold or leased;

(c) subject to subsections (3) and (5), tangible personal property that is purchased in British Columbia, brought or sent into British Columbia or delivered in British Columbia solely for the purpose of being used in the course of providing a related service to other tangible personal property and that remains part of, or attached to, the other tangible personal property after the service has been provided;

(d) subject to subsection (3), tangible personal property, other than prescribed tangible personal property, that is purchased in British Columbia, brought or sent into British Columbia or delivered in British Columbia solely for the purpose of being attached to or processed, fabricated, manufactured or incorporated into a prototype, or copies of the prototype made for a prescribed purpose, if the prototype is a result of research and development activities aimed at developing a new or improved product or a new or improved process;

(e) a prototype or, if made for a prescribed purpose, a copy of a prototype if the prototype or copy is a result of research and development activities aimed at developing a new or improved product or a new or improved process;

(f) [Repealed 2013-1-254.]

(g) tangible personal property that is purchased in British Columbia, brought or sent into British Columbia or delivered in British Columbia substantially for the purpose of

(i) incorporating any software program or telecommunication contained in the tangible personal property into other tangible personal property for the purpose of retail sale or lease, or

(ii) incorporating any software program or telecommunication contained in the tangible personal property into software or a telecommunication service for the purpose of retail sale;

(h) subject to subsection (6), tangible personal property that is purchased in British Columbia, brought or sent into British Columbia or delivered in British Columbia solely for the purpose of

(i) being affixed to, or installed in, a building, a structure or land so that the tangible personal property will become affixed machinery on being affixed or installed, and

(ii) retail sale or lease.

(1.1) The exemptions under subsection (1) do not apply to tangible personal property that is leased.

(2) The exemption under subsection (1) (a) does not apply to a reusable container subject to tax under section 101.

(3) If tangible personal property is used to produce energy or is used as a source of energy, the exemption under subsection (1) (a), (c) or (d) does not apply to the tangible personal property.

(4) The exemptions under subsection (1) (a) do not apply if the person who purchased in British Columbia, brought or sent into British Columbia or received delivery of in British Columbia the tangible personal property that is used

(a) for the purpose of being processed, fabricated or manufactured into, attached to or incorporated into, or

(b) for the purpose of packaging

other tangible personal property for the purpose of retail sale is to retain an interest in the tangible personal property after the retail sale.

(5) The exemption under subsection (1) (c) does not apply if the person who purchased in British Columbia, brought or sent into British Columbia or received delivery of in British Columbia the tangible personal property that is used in the course of providing a related service to other tangible personal property is to retain an interest in the tangible personal property after the service has been provided.

(6) The exemption under subsection (1) (h) does not apply if the person who purchased in British Columbia, brought or sent into British Columbia or received delivery of in British Columbia the tangible personal property that is affixed to, or installed in, a building, a structure or land so that it becomes affixed machinery for the purpose of retail sale is to retain an interest in the tangible personal property after the retail sale.

Exemption for affixed machinery

141.1   A lessee of tangible personal property is exempt from tax imposed under Part 3 on the lease if the lessee leases the tangible personal property solely for the purpose of

(a) affixing the tangible personal property to, or installing the tangible personal property in, a building, a structure or land so that the tangible personal property will become affixed machinery on being affixed or installed, and

(b) re-leasing the tangible personal property to other persons.

Exemptions for tangible personal property intended for lease

142   (1) A purchaser of tangible personal property is exempt from tax imposed under Part 3 on the purchase if the purchaser purchases the tangible personal property for the purpose only of leasing the property to other persons.

(2) A lessee of tangible personal property is exempt from tax imposed under Part 3 on that lease if the lessee leases the tangible personal property for the purpose only of re-leasing the property to other persons.

(2.1) A person who brings or sends into British Columbia, or receives delivery of in British Columbia, tangible personal property is exempt from tax imposed under Part 3 in respect of the bringing or sending into British Columbia, or delivery in British Columbia, of the tangible personal property if the person brought or sent into British Columbia, or received delivery of in British Columbia, the tangible personal property for the purpose only of leasing the property to other persons.

(3) The exemption under subsection (1), (2) or (2.1) does not apply to a person if the person is granting to other persons a right to use the tangible personal property 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.

(4) A purchaser of tangible personal property is exempt from tax imposed under Part 3 on the purchase if the purchaser

(a) purchases the tangible personal property solely for the purposes of

(i) leasing the property to other persons, and

(ii) occasionally, under an agreement, supplying the property with a person to operate it, and

(b) capitalizes the tangible personal property as lease inventory in the purchaser's business accounting records.

(5) A person who brings or sends into British Columbia, or receives delivery of in British Columbia, tangible personal property is exempt from tax imposed under Part 3 in respect of the bringing or sending into British Columbia, or delivery in British Columbia, of the tangible personal property if the person

(a) brought or sent into British Columbia, or received delivery of in British Columbia, the tangible personal property solely for the purposes of

(i) leasing the property to other persons, and

(ii) occasionally, under an agreement, supplying the property with a person to operate it, and

(b) capitalizes the tangible personal property as lease inventory in the person's business accounting records.

Exemption in relation to recording of motion picture or audio production

143   Subject to sections 89 (2) [tax on acquisition of eligible tangible personal property] and 90 (4) [tax on eligible tangible personal property brought into British Columbia], a recording of a motion picture production or of an audio production is exempt from tax imposed under Part 3 [Taxes in Relation to Tangible Personal Property], other than Division 9 [Change in Use] of that Part, if the recording is brought or sent into British Columbia, delivered in British Columbia, purchased or leased for the purpose of

(a) public broadcast by a licensed radio or television broadcaster,

(b) making copies for

(i) public broadcast by a licensed radio or television broadcaster,

(ii) public exhibition in a movie theatre or other public venue, or

(iii) sale or lease, or

(c) copying into another recording of a motion picture production or of an audio production for

(i) public broadcast by a licensed radio or television broadcaster,

(ii) public exhibition in a movie theatre or other public venue, or

(iii) sale or lease.

Limit on exemptions

144   (1) An exemption provided under this Act for tangible personal property does not apply to tangible personal property used to make that property.

(2) An exemption provided under this Act for software does not apply to

(a) tangible personal property used to develop or make that software, or

(b) software used to develop or make that software.

Evidence required to claim certain exemptions

145   (1) Subsection (1.1) applies if a collector sells tangible personal property at a sale in British Columbia, leases tangible personal property, sells software or causes the tangible personal property or software to be delivered in British Columbia to a person who alleges that

(a) the tangible personal property is exempt under section 140, 141, 141.1, 142 or 143 or under prescribed provisions of the regulations from tax imposed under Part 3, or

(b) the software is exempt under section 113 (1) or under prescribed provisions of the regulations from tax imposed under Part 4.

(1.1) A collector to whom this subsection applies must nevertheless levy and collect the tax under Part 3 or 4, and the person must nevertheless pay the tax, in respect of the tangible personal property or software unless the collector obtains from that person, at or before the time the tax is payable,

(a) a declaration in a form acceptable to the director, if required by the regulations,

(b) any information or document required by the regulations, and

(c) any information or document required by the director.

(1.2) Subsection (1.1) does not apply if, in respect of the tangible personal property or software that the person alleges is exempt from tax, the collector is not required under paragraph (a), (b) or (c) of that subsection to obtain any declarations, information or documents.

(2) If a collector provides a taxable service to a person who alleges that the taxable service is exempt under a provision of Part 5 or under prescribed provisions of the regulations from tax under a provision of Part 5, the person must nevertheless pay tax under that Part and the collector must nevertheless levy and collect the tax under that Part unless the collector obtains from that person, at or before the time the tax is payable,

(a) a declaration in a form acceptable to the director, if required by the regulations,

(b) any information or document required by the regulations, and

(c) any information or document required by the director.

(3) Subsection (2) does not apply if, in respect of the taxable service that the person alleges is exempt from tax, the collector is not required under paragraph (a), (b) or (c) of that subsection to obtain any declarations, information or documents.

Part 7 — Refunds

Division 1 — Refunds from Collectors

Refund if no obligation to pay

146   If a person has paid to a collector an amount as tax under this Act in circumstances in which there was no legal obligation to pay the amount as tax, the collector may, within 180 days of the date the amount was paid, refund or credit to the person the amount paid as tax.

Refund if person fails to provide evidence at time of sale or lease

147   (1) This section applies to a collector if

(a) the collector has levied an amount as tax

(i) in accordance with section 37 (3), (4), (5) or (6), 39 (4), 44 (2), 49 (9.1), (10), (11) or (12), 92 (2), 93 (4), 95 (3) or 145 (1.1) in respect of a purchase, lease or delivery of tangible personal property,

(ii) in accordance with section 105 (3) or 145 (1.1) in respect of a purchase or delivery of software, or

(iii) in accordance with section 119 (2), 123.1, 130 (2.1) or (3), 134.3 (4) or 145 (2) in respect of a purchase or provision of a taxable service,

in circumstances in which the collector would not have been required to levy the amount if the collector, at or before the time the tax was levied, had obtained from the person who was liable to pay the tax the declaration, information and document required under the applicable section, and

(b) the collector subsequently obtains from that person the declaration, information and document required under the applicable section.

(2) A collector to whom this section applies may, within 180 days of the date the amount referred to in subsection (1) is levied, refund or credit to the person referred to in that subsection the amount of tax paid or payable.

Prohibition — refund already received

148   (1) A person who has applied for or received a refund from the director under section 152 is not entitled to and must not request a refund or credit under section 146 in respect of the same payment of an amount as tax.

(2) A person who has applied for or received a refund from the director under section 153 is not entitled to and must not request a refund or credit under section 147 in respect of the same payment of tax.

Refund if motor vehicle returned to collector

149   If

(a) a purchaser returns a motor vehicle to the collector who sold it to the purchaser within one year of the date tax is payable under this Act in respect of the purchase, and

(b) in return for the motor vehicle the collector refunds or credits to the purchaser all or a portion of the purchase price,

the collector must, at the time the refund or credit of the purchase price is paid or allowed, refund or credit to the purchaser the amount of tax paid or payable by the purchaser that is attributable to the amount of the refund or credit of the purchase price.

Refund or credit of purchase price

150   Subject to section 149, if a collector, within 4 years of the date tax is payable under this Act in respect of the purchase, pays a refund or allows a credit to a purchaser of tangible personal property, software or a taxable service of all or a portion of the purchase price, the collector may, at the time the refund or credit of the purchase price is paid or allowed, refund or credit to the purchaser the amount of tax paid or payable by the purchaser that is attributable to the amount of the refund or credit of the purchase price.

Refund or credit of lease price

151   If a collector, within 4 years of the date tax is payable under this Act in respect of a lease, pays a refund or allows a credit to a lessee of tangible personal property of all or a portion of the lease price, the collector may, at the time the refund or credit of the lease price is paid or allowed, refund or credit to the lessee the amount of tax paid or payable by the lessee that is attributable to the amount of the refund or credit of the lease price.

Division 2 — Refunds from Director

Refund if no obligation to pay or collect

152   (1) If the director is satisfied that

(a) a person has paid an amount as tax under this Act in circumstances in which there was no legal obligation to pay the amount as tax, and

(b) the person has not been paid a refund or allowed a credit under section 146 in respect of the amount,

the director must refund to that person the amount paid as tax.

(2) If the director is satisfied that a collector has remitted to the government an amount in circumstances in which the collector

(a) was not required to levy and collect the amount under this Act, and

(b) did not collect the amount under this Act,

the director must refund that amount to the collector.

(3) If the director is satisfied that

(a) a collector has remitted an amount as tax under this Act, and

(b) the person liable to pay the tax has paid the tax directly to the government,

the director must refund that amount to the collector.

Refund if person fails to provide evidence at time of sale or lease

153   (1) If the director is satisfied that

(a) a person was required to pay to a collector an amount of tax under section 37 (3), (4), (5) or (6), 39 (4), 44 (2), 49 (9.1), (10), (11) or (12), 92 (2), 93 (4), 95 (3), 105 (3), 119 (2), 123.1, 130 (2.1) or (3), 134.3 (4) or 145 (1.1) or (2) or a prescribed provision of the regulations in circumstances in which the person would not have been required to pay the amount if the collector had obtained from the person, at or before the time the tax was payable, the declaration, information and document required under the applicable section,

(b) the person would not have been required to pay the amount of tax to the collector but for the section of this Act or the regulations referred to in paragraph (a), as applicable, and

(c) the person has not been paid a refund or allowed a credit under section 147 in respect of the amount of tax paid,

the director must refund to the person the amount of tax paid.

(2) Subsection (1) does not apply if a person has received a refund or credit under Division 6 [Conveyances Used Interjurisdictionally] or 7 [Multijurisdictional Vehicles] of Part 3 in respect of the same payment of tax.

Refund if person fails to provide evidence at time of vehicle registration

153.1   If the director is satisfied that

(a) a person was required to pay to the Insurance Corporation of British Columbia an amount of tax under section 37, 49, 50, 52 or 100 in circumstances in which the person would not have been required to pay the amount if the Insurance Corporation of British Columbia had obtained from the person, at or before the time the tax was payable, the declaration, information and document required under section 30 (7), and

(b) the person would not have been required to pay the amount of tax to the Insurance Corporation of British Columbia but for section 30 (7),

the director must refund to the person the amount of tax paid.

Refund if promotional distributor fails to provide evidence at time of sale

153.2   (1) If the director is satisfied that

(a) a promotional distributor was required to pay to a collector an amount of tax under section 30.1 (1) or (2) in circumstances in which the promotional distributor would not have been required to pay the amount if the collector had obtained from the promotional distributor, at or before the time tax was payable, the registration number or declaration required under section 30.1 (1) or (2), and

(b) the promotional distributor has provided the promotional material to another person by way of promotional sale,

the director must refund to the promotional distributor the amount referred to in subsection (2).

(2) The amount of the refund under subsection (1) is equal to the difference between

(a) the amount of tax paid by the promotional distributor in accordance with section 30.1 (1) or (2), and

(b) the amount of tax that would have been payable had the purchase price of the promotional material been calculated at the time of the promotional sale.

Motor vehicle returned to manufacturer

154   If the director is satisfied that

(a) a purchaser returned a motor vehicle to the manufacturer,

(b) the return of the motor vehicle to the manufacturer results from an independent, impartial third party dispute resolution process, and

(c) on the return of the motor vehicle the manufacturer paid a refund or allowed a credit to the purchaser of all or a portion of the purchase price,

the director must refund to the purchaser the amount of tax paid by the purchaser that is attributable to the amount of the refund or credit of the purchase price.

Refund in accordance with Nisa'a Nation Taxation Agreement

155   (1) In this section, "Taxation Agreement" has the same meaning as in section 6.1 of the Nisa'a Final Agreement Act.

(2) If the Taxation Agreement provides that a person is entitled to a refund of tax paid by the person under this Act, on application and on receipt of evidence establishing that the person is so entitled, the director must pay that refund to that person.

Refund in accordance with treaty first nation tax treatment agreement

156   If a tax treatment agreement of a treaty first nation provides that a person is entitled to a refund of tax paid by the person under this Act, on application and on receipt of evidence establishing that the person is so entitled, the director must pay that refund to that person.

Refund by director if collector does not provide refund

157   (1) If the director is satisfied that

(a) a collector paid a refund or allowed a credit to a person of all or a portion of a purchase price in the circumstances referred to in section 149 or 150, and

(b) the collector did not refund or credit to the person the amount of tax paid by the person under this Act that is attributable to the amount of the refund or credit of the purchase price,

the director must refund to that person the amount of tax paid by the person that is attributable to the amount of the refund or credit of the purchase price.

(2) If the director is satisfied that

(a) a collector paid a refund or allowed a credit to a person of all or a portion of a lease price in the circumstances referred to in section 151, and

(b) the collector did not refund or credit to the person the amount of tax paid by the person that is attributable to the amount of the refund or credit of the lease price,

the director must refund to that person the amount of tax paid by the person that is attributable to the amount of the refund or credit of the lease price.

Property shipped out of British Columbia

158   If the director is satisfied that

(a) a purchaser purchased tangible personal property at a sale in British Columbia for a business use and paid tax under Part 3 on the purchase,

(b) the tangible personal property,

(i) in the case of tangible personal property provided by way of promotional distribution, was shipped out of British Columbia in bulk to a recipient for the recipient's own use or consumption outside British Columbia, or

(ii) in any other case, was shipped out of British Columbia for use outside British Columbia, and

(c) no use whatsoever was made of the tangible personal property while it was in British Columbia other than to store it in and to ship it out of British Columbia,

the director must, unless tax is required to be refunded under section 158.1 in relation to the same tangible personal property, refund to the purchaser the tax paid under Part 3 on the purchase.

Property used to improve real property situated outside British Columbia

158.1   If the director is satisfied that

(a) a contractor purchased in British Columbia, brought or sent into British Columbia, or received delivery of in British Columbia, tangible personal property,

(b) the contractor paid tax under Part 3 of the Act in respect of the tangible personal property,

(c) [Repealed 2020-18-72.]

(d) the contractor shipped the tangible personal property out of British Columbia for the purpose of fulfilling a contract for the supply and installation of affixed machinery or improvements to real property situated outside British Columbia, and

(e) under the terms of the contract, the tangible personal property was used so that it ceased to be personal property at common law,

(f) [Repealed 2020-18-72.]

the director must refund to the contractor the tax paid under Part 3 of the Act in relation to the tangible personal property, whether or not the tangible personal property was processed, fabricated or manufactured into, or attached to or incorporated into, other tangible personal property that was used outside British Columbia as described in paragraph (e).

Refund or deduction for bad debts

159   (1) In this section:

"specified amount", in relation to a transaction, means a portion, determined in the prescribed manner, of the amount remitted by the person to the government in respect of taxes payable under this Act on that transaction;

"transaction" means a transaction referred to in subsection (2) (a) (i).

(2) This section applies to a person in respect of a transaction if

(a) the person

(i) sells or provides tangible personal property, software or a taxable service or leases tangible personal property, or

(ii) is a designated collector under section 179.1 [designation of collector if agent and principal] in respect of a transaction,

(b) the person, in accordance with this Act, remits the tax required under this Act to be levied and collected for the transaction,

(c) the person is a registrant at the time the transaction occurs,

(d) the purchaser or lessee does not pay to the person the full amount of the consideration in respect of the transaction, and

(e) within 4 years of the date on which the tax referred to in paragraph (b) was remitted, the person writes off as unrealizable or uncollectable the amount owing by the purchaser or lessee.

(3) A registrant to whom this section applies in respect of a transaction may deduct the specified amount from the amount of taxes that the registrant is required to remit under this Act in respect of the reporting period in which the registrant writes off the amount owing referred to in subsection (2) (e).

(4) A deduction referred to in subsection (3) must be made in a form specified by the director.

(5) If the director is satisfied that

(a) this section applies to a person in respect of a transaction, and

(b) if the person is a registrant, the person has not made a deduction under subsection (3) in respect of the transaction,

the director must refund the specified amount to the person.

(6) If a registrant who has made a deduction under subsection (3) or obtained a refund under subsection (5) recovers some or all of the amount referred to in subsection (2) (e) with respect to which the refund was paid or the deduction was made, the registrant must add an amount, determined in the prescribed manner, to the tax remitted by the registrant under this Act in respect of the reporting period in which the recovery was made.

(7) If a person, other than a registrant referred to in subsection (6), who obtained a refund under subsection (5) recovers some or all of the amount referred to in subsection (2) (e) with respect to which the refund was paid, the person must pay to the government an amount, determined in the prescribed manner, on or before the last day of the month following the month in which the recovery was made.

Refund to collector

160   (1) This section applies to a collector if the collector has

(a) levied and remitted an amount in accordance with this Act, and

(b) paid a refund or allowed a credit under Division 1 of this Part or under a regulation made under section 243 in respect of the amount referred to in paragraph (a) of this subsection.

(2) If a collector to whom this section applies is a registrant, the collector may deduct, in respect of the reporting period in which the refund or credit referred to in subsection (1) (b) is paid or allowed, the amount of the refund or credit from the amount of taxes that the collector is required to remit under this Act.

(3) A deduction referred to in subsection (2) must be made in a form specified by the director.

(4) If the director is satisfied that

(a) this section applies to a collector, and

(b) if the collector is a registrant, the collector has not made a deduction under subsection (2) in respect of the refund or credit referred to in subsection (1) (b),

the director must refund to the collector the amount of the refund or credit referred to in subsection (1) (b).

Refund to small seller

161   If the director is satisfied that

(a) a person as a small seller paid tax

(i) under section 37 in accordance with section 89 in respect of eligible tangible personal property,

(ii) under section 49 in accordance with section 90 in respect of eligible tangible personal property,

(iii) under section 55 in respect of eligible tangible personal property,

(iv) under section 112 in respect of software, or

(v) under Division 1, 2, 4 or 5 of Part 5 in respect of a taxable service purchased for resale, and

(b) when the person sold the eligible tangible personal property, software or taxable service, the person was a collector who levied and collected tax as required by this Act on that sale,

the director must pay a refund to the person of the amount of tax referred to in paragraph (a) that was paid by that person.

Refunds authorized or required under regulations

162   The director,

(a) if authorized by the regulations, may refund all or part of an amount paid or remitted under this Act by an applicant for a refund,

(b) if required by the regulations, must refund all or part of an amount paid or remitted under this Act by an applicant for a refund,

(c) if authorized by the regulations, may refund to an eligible charity or parents' advisory council who applies for a refund all or part of an amount paid under this Act by a person, and

(d) if required by the regulations, must refund to an eligible charity or parents' advisory council who applies for a refund all or part of an amount paid under this Act by a person.

Prohibition — refund or credit already received

163   (1) A person who has been paid a refund or allowed a credit under Division 1 is not entitled to and must not apply for a refund under this Division in respect of any portion of the amount of the refund or credit paid or allowed under Division 1.

(2) If a person is paid a refund under this Division and the person subsequently is paid a refund or allowed a credit under Division 1 in respect of the same payment of tax, that person must pay to the government the amount refunded under this Division on or before the last day of the month after the month in which the refund under Division 1 was received by that person.

Division 3 — General

Definition

164   In this Division, "refund" means a refund payable under this Act by the director.

Claim for refund

165   (1) To claim a refund, other than under section 155 or 156, a person, a parents' advisory council or an eligible charity must submit to the director

(a) subject to the regulations, a written application in the form and manner satisfactory to the director and signed,

(i) in the case of a claim by an eligible charity, by an authorized representative of the eligible charity,

(i.1) in the case of a claim by a parents' advisory council, by an authorized representative of the parents' advisory council, or

(ii) in any other case, by the person who paid or remitted the amount claimed, and

(b) any information or document required by the director.

(1.1) For the purposes of subsection (1) (a) (i), if the eligible charity making the claim is a corporation, the application must be signed by an authorized representative who is a member of the board of directors or an authorized employee of the corporation.

(2) For the purposes of subsection (1) (a) (ii), if the person who paid or remitted the amount claimed is a corporation, the application must be signed by a member of the board of directors or an authorized employee of the corporation.

(3) Despite anything in this Act or the regulations, the director is not required to pay a refund to a person, a parents' advisory council or an eligible charity, other than a refund under section 155 or 156, unless the requirements of this section are met.

Refund limits

166   (1) Despite section 16 of the Financial Administration Act,

(a) a refund of less than $10 must not be made,

(b) a refund, other than a refund referred to in paragraph (c) or (d), must not be made on a claim for a refund that is received by the director more than 4 years after the date on which the amount claimed was paid or remitted,

(c) a refund to a person under section 159 (5) must not be made on a claim for a refund that is received by the director more than 4 years after the date on which the person writes off as unrealizable or uncollectable the amount owing by the purchaser or lessee, and

(d) a refund to a collector under section 160 (4) must not be made on a claim for a refund that is received by the director more than 4 years after the date on which the collector paid a refund or allowed a credit under Division 1.

(2) Despite the Limitation Act, an action for a refund must not be brought more than 4 years after the date on which the amount claimed was paid or remitted.

Appropriation for refunds

167   If the director pays a refund, the director must pay the refund from the consolidated revenue fund.

Part 8 — Registration and Tax Collection

Division 1 — Registration

Registration

168   (1) In this section, "applicant" means any of the following:

(a) a vendor or lessor who is required under section 169 to be registered under this section;

(b) a contractor who is required under section 170 to be registered under this section;

(c) a direct seller who is required under section 171 to be registered under this section;

(d) a person who is required under section 172 or 172.1 to be registered under this section;

(d.1) an online marketplace facilitator who is required under section 172.3 to be registered under this section;

(d.2) a person who is required under section 172.4 to be registered under this section;

(e) a person who is not referred to in paragraphs (a) to (d.2) and who

(i) carries on business in British Columbia, or

(ii) intends to carry on business in British Columbia;

(f) a person who

(i) is not otherwise described in paragraphs (a) to (e),

(ii) is located in Canada but outside British Columbia, and

(iii) sells or provides, or intends to sell or provide, to a person in British Columbia tangible personal property, software or a taxable service;

(g) a person who

(i) is not otherwise described in paragraphs (a) to (f),

(ii) is located outside Canada, and

(iii) sells or provides, or intends to sell or provide, to a person in British Columbia

(A) software,

(B) a taxable service, or

(C) goods for commercial use that the seller or provider brings, sends or causes to be delivered into British Columbia from a place outside Canada; 

(h) a person who

(i) is not otherwise described in paragraphs (a) to (g),

(ii) is located outside Canada, and

(iii) either

(A) purchases tangible personal property in Canada for the purpose of fulfilling an agreement to sell or provide the tangible personal property to a person in British Columbia, or

(B) holds tangible personal property in inventory in Canada but outside British Columbia at the time the tangible personal property is sold or provided to a person in British Columbia.

(i) [Repealed 2022-11-84.]

(2) An applicant may apply to the director to be registered for the purposes of this Act by submitting to the director

(a) an application in a form specified by the director, and

(b) any information required by the director.

(3) Subject to subsections (7) to (9.1), on receipt of an application and the information referred to in subsection (2), the director must

(a) register the applicant for the purposes of this Act, and

(b) issue the applicant a registration number.

(4) If the director issues more than one registration number to an applicant, the director may impose conditions restricting the use of a registration number by the applicant to a particular business carried on by the applicant or to a particular location from which the applicant carries on business.

(5) A registration number is not transferable.

(6) Before the director registers an applicant under subsection (3), the director may require the applicant to deposit a bond under section 216 [collection bond] by the date specified by the director.

(7) The director may refuse to register an applicant under subsection (3) if any of the following apply:

(a) the applicant does not hold the registrations, licences, permits or other authorizations that the applicant is required by law to hold in order to carry on business;

(b) the applicant has failed to deposit a bond required under section 216 [collection bond] by the date specified by the director under subsection (6) of this section;

(c) the applicant 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 any other Act described in subparagraph (i);

(d) based on the facts set out in the application for registration or the other information required by the director, the director reasonably believes that the applicant will be committing an offence under this Act or any other enactment, or under a law of Canada or another province, in selling or leasing tangible personal property or providing software or a taxable service;

(e) in relation to an applicant referred to in subsection (1) (f), the applicant has not entered into an agreement with the director, on behalf of the government, setting out

(i) the duties to be performed by the applicant when the applicant is acting as a registrant, and

(ii) any other matters the director considers necessary or advisable.

(8) The director must refuse to register an applicant under subsection (3) if the applicant

(a) is, or proposes to be, a motor dealer, as defined in the Motor Dealer Act, and

(b) is not registered under that Act for each location in British Columbia at which the applicant carries on business, or intends to carry on business, as a motor dealer.

(9) The director must refuse to register an applicant under subsection (3) who is an independent sales contractor unless the applicant carries on, or intends to carry on, a business that is not related to the sale of exclusive products.

(9.1) In relation to an applicant referred to in subsection (1) (g) or (h), the director must refuse to register the applicant under subsection (3) unless

(a) the director considers that the applicant is suitable, and

(b) the applicant has entered into an agreement with the director, on behalf of the government, setting out

(i) the duties to be performed by the applicant when the applicant is acting as a registrant, and

(ii) any other matters the director considers necessary or advisable.

(10) If the director refuses to register an applicant under subsection (3), the director, as soon as reasonably possible, must give the applicant written reasons for the refusal.

Vendors and lessors must be registered

169   (1) A vendor must not sell or provide tangible personal property in British Columbia at a retail sale unless the vendor

(a) is registered under section 168 at the time of sale, or

(b) sells or provides only tangible personal property that is exempt from tax imposed under this Act.

(1.1) Subsection (2) applies to a lessor who does one or more of the following:

(a) enters into leases in British Columbia with a lessee;

(b) leases, to a lessee or any other person referred to in the definition of "lessee", tangible personal property that is in British Columbia at the time the lease is entered into;

(c) transfers possession of or delivers the tangible personal property to a lessee, or any other person referred to in the definition of "lessee", in British Columbia.

(2) A lessor to whom this subsection applies must not do one or more of the activities referred to in subsection (1.1) (a) to (c) unless the lessor

(a) is registered under section 168 at the time the lessor does the activity, or

(b) leases only tangible personal property that is exempt from tax imposed under this Act.

(3) A vendor must not sell or provide software in British Columbia at a retail sale unless the vendor

(a) is registered under section 168 at the time of sale, or

(b) sells or provides only software that is exempt from tax imposed under this Act.

(4) A vendor must not sell or provide a taxable service in British Columbia at a retail sale unless the vendor

(a) is registered under section 168 at the time of sale, or

(b) sells or provides only a taxable service that is exempt from tax imposed under this Act.

(5) Despite subsections (1) (a), (3) (a) and (4) (a), a person who is a vendor on ceasing to be a small seller must be registered under section 168 on or before the last day of the first month in which the person is a vendor.

(6) [Repealed 2022-11-86.]

Contractor must be registered

170   (1) This section applies to a contractor who

(a) has entered into an agreement referred to in section 79 (1) (c) or (2) (c) [contractor exempt from tax under section 37 or 49] in respect of liability for tax imposed under section 80 in relation to a supply of tangible personal property, or

(b) has entered into an agreement referred to in section 80.5 (6) (a) [tax on tangible personal property used by contractor to improve real property] in respect of liability for tax imposed under section 80.6 in relation to a supply of tangible personal property.

(2) A contractor to whom this section applies must not supply the tangible personal property referred to in subsection (1) unless the contractor is registered under section 168 at the time the contractor supplies the tangible personal property.

Direct seller must be registered

171   (1) Subject to subsection (2), a direct seller must not sell an exclusive product to an independent sales contractor in British Columbia unless the direct seller

(a) is registered under section 168 at the time of sale, or

(b) sells only exclusive products that are exempt from tax imposed under this Act.

(2) A direct seller who is located in Canada but outside British Columbia must be registered under section 168 at the time the direct seller causes an exclusive product sold to an independent sales contractor to be delivered in British Columbia, unless the direct seller sells only exclusive products that are exempt from tax imposed under this Act.

(3) Sections 83 [demand on third party] and 85 [books and records are property of the government] of the Financial Administration Act do not apply to a person who is required under subsection (2) of this section to be registered under section 168.

Person located in Canada but outside British Columbia must be registered

172   (1) Subject to subsection (2), a person must be registered under section 168 at the time the person causes tangible personal property to be delivered in British Columbia if the person is located in Canada but outside British Columbia and, in the ordinary course of business, does all of the following:

(a) solicits persons in British Columbia for orders to purchase tangible personal property, by advertising or any other means;

(b) accepts orders to purchase tangible personal property, if the orders to purchase originate from locations in British Columbia;

(c) sells or provides tangible personal property to a person in British Columbia for use or consumption

(i) by the person,

(ii) by a third person at the expense of the person to whom the property is sold or provided,

(iii) by a principal for whom the person acts as agent, or

(iv) by a third person at the expense of the principal for whom the person to whom the property is sold or provided acts as agent;

(d) causes the tangible personal property described in paragraph (c) to be delivered in British Columbia.

(1.1) Subject to subsection (2), a person must be registered under section 168 at the time the person causes tangible personal property to be delivered in British Columbia if the person is located in Canada but outside British Columbia and, in the ordinary course of business, does all of the following:

(a) accepts orders to purchase tangible personal property, if the orders to purchase originate from locations in British Columbia;

(b) sells or provides, in response to the acceptance of orders as set out in paragraph (a),

(i) tangible personal property in an amount that meets the British Columbia minimum revenue threshold set out in section 172.2, or

(ii) vapour products;

(c) sells or provides tangible personal property to a person in British Columbia for use or consumption

(i) by the person,

(ii) by a third person at the expense of the person to whom the property is sold or provided,

(iii) by a principal for whom the person acts as agent, or

(iv) by a third person at the expense of the principal for whom the person to whom the property is sold or provided acts as agent;

(d) causes the tangible personal property described in paragraph (c) to be delivered in British Columbia.

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

(2.1) Subject to subsection (2.2), a person must be registered under section 168 at the time the person provides software for use on or with an electronic device ordinarily situated in British Columbia or provides a telecommunication service, if the person is located in Canada but outside British Columbia and, in the ordinary course of business, does all of the following:

(a) solicits persons in British Columbia for orders to purchase software for use on or with an electronic device ordinarily situated in British Columbia or to purchase a telecommunication service, by advertising or any other means;

(b) accepts orders to purchase software for use on or with an electronic device ordinarily situated in British Columbia or to purchase a telecommunication service, if the orders to purchase originate from locations in British Columbia;

(c) sells or provides software for use on or with an electronic device ordinarily situated in British Columbia or sells or provides a telecommunication service to a person in British Columbia for use or benefit

(i) by the person,

(ii) by a third person at the expense of the person to whom the software or telecommunication service is sold or provided,

(iii) by a principal for whom the person acts as agent, or

(iv) by a third person at the expense of the principal for whom the person to whom the software or telecommunication service is sold or provided acts as agent.

(2.2) Subsection (2.1) does not apply to a person if the person sells or provides only software or a telecommunication service that is exempt from tax imposed under this Act.

(3) Sections 83 [demand on third party] and 85 [books and records are property of the government] of the Financial Administration Act do not apply to a person who is required under subsection (1), (1.1) or (2.1) of this section to be registered under section 168.

Person located outside British Columbia must be registered

172.1   (1) Subject to subsection (2), a person must be registered under section 168 at the time the person sells or provides tangible personal property at a retail sale if the person is located outside British Columbia and, in the ordinary course of business, does all of the following:

(a) accepts orders to purchase tangible personal property, if the orders to purchase originate from locations in British Columbia;

(b) sells or provides tangible personal property to a person in British Columbia for use or consumption

(i) by the person,

(ii) by a third person at the expense of the person to whom the property is sold or provided,

(iii) by a principal for whom the person acts as agent, or

(iv) by a third person at the expense of the principal for whom the person to whom the property is sold or provided acts as agent;

(c) holds the tangible personal property described in paragraph (b) in inventory in British Columbia at the time the tangible personal property is sold or provided.

(1.1) Subject to subsection (2), a person located outside British Columbia must be registered under section 168 at the time the person provides software for use on or with an electronic device ordinarily situated in British Columbia or provides a telecommunication service and, in the ordinary course of business, does all of the following:

(a) accepts orders to purchase software for use on or with an electronic device ordinarily situated in British Columbia or to purchase a telecommunication service, if the orders to purchase originate from locations in British Columbia;

(b) sells or provides, in response to the acceptance of orders as set out in paragraph (a), and in an amount that meets the British Columbia minimum revenue threshold set out in section 172.2,

(i) software for use on or with an electronic device ordinarily situated in British Columbia, or

(ii) a telecommunication service;

(c) sells or provides software for use on or with an electronic device ordinarily situated in British Columbia or sells or provides a telecommunication service to a person in British Columbia for use or benefit

(i) by the person,

(ii) by a third person at the expense of the person to whom the software or telecommunication service is sold or provided,

(iii) by a principal for whom the person acts as agent, or

(iv) by a third person at the expense of the principal for whom the person to whom the software or telecommunication service is sold or provided acts as agent.

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

(3) Sections 83 [demand on third party] and 85 [books and records are property of the government] of the Financial Administration Act do not apply to a person who is required under subsection (1) or (1.1) of this section to be registered under section 168 of this Act.

British Columbia minimum revenue threshold

172.2   (1) For the purposes of sections 172 and 172.1, a person located in Canada but outside British Columbia meets the minimum British Columbia revenue threshold if, in respect of British Columbia,

(a) the person's gross revenue in the preceding 12 months from all retail sales and leases of tangible personal property and all sales and provisions of software and telecommunication services is greater than $10 000, or

(b) the person's reasonable estimate of the person's gross revenue in the 12 months after the 12 months referred to in paragraph (a) from all retail sales and leases of tangible personal property and all sales and provisions of software and telecommunication services is greater than $10 000.

(2) For the purposes of sections 172 and 172.1, a person located outside Canada meets the minimum British Columbia revenue threshold if, in respect of British Columbia,

(a) the person's gross revenue in the preceding 12 months from all sales and provisions of software and telecommunication services is greater than $10 000, or

(b) the person's reasonable estimate of the person's gross revenue in the 12 months after the 12 months referred to in paragraph (a) from all sales and provisions of software and telecommunication services is greater than $10 000.

Online marketplace facilitator must be registered

172.3   (1) Subject to subsections (2) and (3), an online marketplace facilitator must be registered under section 168 at the time the online marketplace facilitator facilitates any of the following:

(a) an online marketplace seller's retail sale, provision or lease of tangible personal property that, at the time the tangible personal property is sold, provided or leased, is located within Canada or, in prescribed circumstances, outside Canada, to a person in British Columbia for use or consumption in British Columbia

(i) by the person,

(ii) by a third person at the expense of the person to whom the property is sold, leased or provided,

(iii) by a principal for whom the person acts as agent, or

(iv) by a third person at the expense of the principal for whom the person to whom the property is sold, leased or provided acts as agent;

(b) an online marketplace seller's retail sale or provision of software for use on or with an electronic device ordinarily situated in British Columbia;

(c) an online marketplace seller's retail sale or provision of accommodation in British Columbia;

(d) an online marketplace seller's retail sale or provision of other taxable services, other than legal services, to a person in British Columbia.

(2) An online marketplace facilitator is not required to be registered under section 168 if

(a) the gross value of the retail sales, provisions and leases of tangible personal property, software and taxable services described in subsection (1) (a) to (d) and made or facilitated by the online marketplace facilitator in the preceding 12 months is $10 000 or less, or

(b) the reasonable estimated gross value of the retail sales, provisions and leases of tangible personal property, software and taxable services, described in subsection (1) (a) to (d) and made or facilitated by the online marketplace facilitator in the 12 months after the 12 months referred to in paragraph (a) is $10 000 or less.

(3) An online marketplace facilitator is not required to be registered under section 168 if

(a) the online marketplace facilitator is one of 2 or more online marketplace facilitators who jointly operate, own or control an online marketplace,

(b) at least one of the other online marketplace facilitators is a registrant, and

(c) the registrant levies and collects all tax payable under this Act, as required by section 179 (1), in relation to retail sales, provisions and leases of tangible personal property, and retail sales or provisions of software and taxable services, other than legal services, through the online marketplace.

(4) Subsection (1) does not apply to a person if the person facilitates only sales, provisions and leases of tangible personal property, or sales and provisions of software or taxable services, other than legal services, that are exempt from tax imposed under this Act.

Person who provides online marketplace services must be registered

172.4   (1) Subject to subsection (2), a person located outside British Columbia must be registered under section 168 at the time the person sells or provides an online marketplace service that is taxable under section 134.3 (1) or (2).

(2) A person who sells or provides online marketplace services is not required to be registered under section 168 if, in respect of British Columbia,

(a) the person's gross revenue in the preceding 12 months from all retail sales, provisions and leases of tangible personal property and retail sales and provisions of software and taxable services is $10 000 or less, or

(b) the person's reasonable estimate of the person's gross revenue in the 12 months after the 12 months referred to in paragraph (a) from all retail sales, provisions and leases of tangible personal property and retail sales and provisions of software and taxable services is $10 000 or less.

Suspension or cancellation of registration

173   (1) The director may, without advance notice to a person, suspend the person's registration under section 168 for a period of up to 60 days if one or more of the following applies:

(a) the director is satisfied that the person knowingly gave false information on an application for registration;

(b) the person refuses or neglects to comply with a condition imposed by the director under section 168 (4);

(c) the person does not hold the registrations, licences, permits or other authorizations that the person is required by law to hold in order to carry on business;

(d) the person has failed to deposit a bond required under section 216 [collection bond] by the date specified by the director;

(e) the person 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 any other Act described in subparagraph (i);

(f) the director reasonably believes that the person is or will be committing an offence under this Act or any other enactment, or under a law of Canada or another province, in selling or leasing tangible personal property or providing software or a taxable service;

(g) in relation to a person referred to in section 168 (1) (f),

(i) the person has not entered into an agreement with the director, on behalf of the government, setting out

(A) the duties to be performed by the person when the person is acting as a registrant, and

(B) any other matters the director considers necessary or advisable, or

(ii) the person has entered into an agreement referred to in subparagraph (i) and the person has breached the agreement or the agreement is no longer in force;

(h) the person is an independent sales contractor and does not carry on, or intend to carry on, a business other than a business that is related to the sale of exclusive products;

(i) in relation to a person referred to in section 168 (1) (g) or (h),

(i) the director no longer considers the person to be suitable, or

(ii) the person has breached an agreement referred to in section 168 (9.1) (b) or the agreement is no longer in force.

(1.1) If a person is a motor dealer, as defined in the Motor Dealer Act, and the person's registration has been suspended under that Act, then the director may, without advance notice to the person, suspend the person's registration under section 168 of this Act until the director is satisfied that the person's registration under the Motor Dealer Act is no longer suspended.

(2) If the director suspends the registration of a person under subsection (1), the director must, as soon as reasonably possible,

(a) give the person written reasons for the suspension, and

(b) provide the person with an opportunity to show the director why the suspension should be lifted.

(3) Subject to subsection (4), the director may, by notice given to a person, cancel the person's registration under section 168 if one or more of the following applies:

(a) the director is satisfied that the person knowingly gave false information on an application for registration;

(b) the person refuses or neglects to comply with a condition imposed by the director under section 168 (4);

(c) the person does not hold the registrations, licences, permits or other authorizations that the person is required by law to hold in order to carry on business;

(d) the person has failed to deposit a bond required under section 216 [collection bond] by the date specified by the director;

(e) the person 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 any other Act described in subparagraph (i);

(f) the director reasonably believes that the person is or will be committing an offence under this Act or any other enactment, or under a law of Canada or another province, in selling or leasing tangible personal property or providing software or a taxable service;

(g) in relation to a person referred to in section 168 (1) (f) or (i),

(i) the person has not entered into an agreement with the director, on behalf of the government, setting out

(A) the duties to be performed by the person when the person is acting as a registrant, and

(B) any other matters the director considers necessary or advisable, or

(ii) the person has entered into an agreement referred to in subparagraph (i) and the person has breached the agreement or the agreement is no longer in force;

(h) the person is an independent sales contractor and does not carry on, or intend to carry on, a business other than a business that is related to the sale of exclusive products;

(i) in relation to a person referred to in section 168 (1) (g) or (h),

(i) the director no longer considers the person to be suitable, or

(ii) the person has breached an agreement referred to in section 168 (9.1) (b) or the agreement is no longer in force.

(3.1) Subject to subsection (4), the director may, by notice given to a person, cancel the person's registration under section 168 of this Act if the person is a motor dealer, as defined in the Motor Dealer Act, and the person's registration under that Act has been

(a) suspended for at least one year, or

(b) cancelled.

(4) Before cancelling a person's registration under subsection (3) or (3.1), the director must

(a) give the person notice of the reasons for the proposed cancellation, and

(b) provide the person with an opportunity to show the director why the registration should not be cancelled.

(5) Cancellation of a person's registration under subsection (3) or (3.1) takes effect on the later of

(a) the date the notice of cancellation under subsection (3) or (3.1) is given to the person, and

(b) the date stated in the notice.

(6) A suspension or cancellation of a person's registration under this section does not relieve the person from any obligation under this Act.

When registrant must notify director

174   (1) In this section, "registrant" includes a person whose registration under section 168 is suspended.

(2) If a registrant's name, address or business name changes or the nature of the registrant's business changes, the registrant must notify the director in a manner specified by the director on or before the last day of the month after the month in which the change occurred.

(3) If a registrant ceases to carry on business in British Columbia,

(a) the registrant must notify the director, in a form and manner specified by the director, of the cessation of business on or before the last day of the month after the month in which the cessation of business occurred, and

(b) the registrant's registration is deemed to be cancelled effective on the earlier of

(i) the date the director receives notification, and

(ii) the last day of the month after the month in which the cessation of business occurred.

(4) If a registrant who is required under section 172 (1) to be registered ceases to do all of the activities described in section 172 (1) (a) to (d) in the ordinary course of business,

(a) the registrant must notify the director, in a form and manner specified by the director, of the cessation on or before the last day of the month after the month in which the cessation occurred, and

(b) the registrant's registration is deemed to be cancelled effective on the earlier of

(i) the date the director receives notification, and

(ii) the last day of the month after the month in which the cessation occurred.

(4.01) If a registrant who is required under section 172 (1.1) to be registered ceases to do all of the activities described in section 172 (1.1) (a) to (d) in the ordinary course of business,

(a) the registrant must notify the director, in a form and manner specified by the director, of the cessation on or before the last day of the month after the month in which the cessation occurred, and

(b) the registrant's registration is deemed to be cancelled effective on the earlier of

(i) the date the director receives notification, and

(ii) the last day of the month after the month in which the cessation occurred.

(4.1) If a registrant who is required under section 172 (2.1) to be registered ceases to do all of the activities described in section 172 (2.1) (a) to (c) in the ordinary course of business,

(a) the registrant must notify the director, in a form and manner specified by the director, of the cessation on or before the last day of the month after the month in which the cessation occurred, and

(b) the registrant's registration is deemed to be cancelled effective on the earlier of

(i) the date the director receives notification, and

(ii) the last day of the month after the month in which the cessation occurred.

(4.2) If a registrant who is required under section 172.1 (1) to be registered ceases to do all of the activities described in section 172.1 (1) (a) to (c) in the ordinary course of business,

(a) the registrant must notify the director, in a form and manner specified by the director, of the cessation on or before the last day of the month after the month in which the cessation occurred, and

(b) the registrant's registration is deemed to be cancelled effective on the earlier of

(i) the date the director receives notification, and

(ii) the last day of the month after the month in which the cessation occurred.

(4.3) If a registrant who is required under section 172.1 (1.1) to be registered ceases to do all of the activities described in section 172.1 (1.1) (a) to (c) in the ordinary course of business,

(a) the registrant must notify the director, in a form and manner specified by the director, of the cessation on or before the last day of the month after the month in which the cessation occurred, and

(b) the registrant's registration is deemed to be cancelled effective on the earlier of

(i) the date the director receives notification, and

(ii) the last day of the month after the month in which the cessation occurred.

(4.4) If a registrant who is required under section 172.3 to be registered ceases to facilitate, in the ordinary course of business, the sales, provisions and leases described in section 172.3 (1) (a) to (d) in an amount that exceeds the value threshold set out in 172.3 (2),

(a) the registrant must notify the director, in a form and manner specified by the director, of the cessation on or before the last day of the month after the month in which the cessation occurred, and

(b) the registrant's registration is deemed to be cancelled effective on the earlier of

(i) the date the director receives notification, and

(ii) the last day of the month after the month in which the cessation occurred.

(4.5) If a registrant who is required under section 172.4 to be registered ceases, in the ordinary course of business, to sell or provide online marketplace services that are taxable under section 134.3 (1) or (2), or ceases to sell, provide or lease, as applicable, tangible personal property, software or taxable services in an amount that exceeds the revenue threshold set out in section 172.4 (2),

(a) the registrant must notify the director, in a form and manner specified by the director, of the cessation on or before the last day of the month after the month in which the cessation occurred, and

(b) the registrant's registration is deemed to be cancelled effective on the earlier of

(i) the date the director receives notification, and

(ii) the last day of the month after the month in which the cessation occurred.

(5) If a registrant applied for registration as an applicant referred to in section 168 (1) (e) (ii) and no longer intends to carry on business in British Columbia,

(a) the registrant must notify the director, in a form and manner specified by the director, that the registrant no longer intends to carry on business on or before the last day of the month after the month in which the registrant determines that the registrant no longer intends to carry on business, and

(b) the registrant's registration is deemed to be cancelled effective on the earlier of

(i) the date the director receives notification, and

(ii) the last day of the month after the month in which the registrant determines that the registrant no longer intends to carry on business.

(6) The cancellation of a person's registration under this section does not relieve the person from any obligation under this Act.

(7) Despite subsections (3) (b), (4) (b), (4.01) (b), (4.1) (b), (4.2) (b), (4.4) (b), (4.5) (b) and (5) (b), a registrant's registration is not deemed to be cancelled under those subsections if the registrant is otherwise required under section 169, 170, 171, 172, 172.1, 172.3 or 172.4 to be registered under section 168.

Cancellation of registration if small seller

175   (1) A person who is a registrant may apply to the director to have the person's registration cancelled under subsection (2) by submitting to the director

(a) an application in a form specified by the director, and

(b) any information required by the director.

(2) On receipt of an application and the information referred to in subsection (1), the director, subject to subsection (3), may cancel the person's registration by notice given to the person if the director is satisfied that the person would be a small seller if the person were not registered under section 168.

(3) The director may not cancel a person's registration under subsection (2) unless the person has been registered under section 168 for at least one year.

(4) Cancellation of a person's registration under subsection (2) takes effect on the later of

(a) the date the notice of cancellation under subsection (2) is given to the person, and

(b) the date stated in the notice.

(5) The cancellation of a person's registration under this section does not relieve the person from any obligation under this Act.

Registrant who is independent sales contractor

176   If a person is a registrant and an independent sales contractor, the person is deemed not to be a registrant in relation to a sale of an exclusive product that is sold by the person as an independent sales contractor.

Prohibitions relating to use of registration number

177   (1) If a person's registration under section 168 is suspended or cancelled under section 173, the person must not use the person's registration number.

(2) A person must not use a registration number issued to the person when purchasing or leasing tangible personal property or purchasing software or a taxable service unless

(a) the person is

(i) purchasing or leasing the tangible personal property for resale or for leasing the property to other persons, or

(ii) purchasing the software or taxable service for resale, or

(b) the person is otherwise authorized under this Act to use the person's registration number.

(3) Subject to subsection (4), a person must not use a registration number issued to another person.

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

Division 2 — Collection and Remittance of Tax

Collector is agent

178   (1) Subject to subsection (2), a collector is an agent of the government for the purposes of this Act.

(2) A collector who provides accommodation is an agent of the municipality, regional district or eligible entity for the purposes of levying and collecting the tax imposed under section 123.

(3) As agent under subsection (1) or (2), the collector must levy and collect tax as required under this Act.

(4) [Repealed 2018-4-81.]

Collection and remittance of tax by collector

179   (1) If tax is imposed under this Act in relation to tangible personal property, software or a taxable service sold or provided by a collector or in relation to tangible personal property leased by a collector as lessor, the collector must levy and collect the tax at the time the tax is payable in accordance with section 28.

(1.1) Subsection (1) does not apply to a collector in relation to tax imposed under section 49, 52, 93 or 101 (2) unless the collector causes the tangible personal property to be delivered in British Columbia.

(1.2) If tax is imposed under section 80.6 in relation to tangible personal property used as referred to in that section by a collector, the collector must levy and collect the tax at the time the tax is payable in accordance with that section.

(1.3) If tax is imposed under this Act in relation to a gift of a vehicle, boat or aircraft given by a collector to a person who must pay tax imposed under section 100 in respect of the gift, the collector must levy and collect the tax at the time the tax is payable in accordance with section 31 (1).

(1.4) Subsection (1) of this section does not apply to a collector if tax is imposed under this Act in relation to tangible personal property, software or a telecommunication service that a person alleges is being purchased for promotional sale, and if the collector, in accordance with section 30.1 (1) or (2), obtains the person's registration number or a declaration in a form acceptable to the director.

(2) A collector must remit to the government, on or before the prescribed date and in the prescribed manner, amounts of tax levied under this Act by the collector, whether or not collected.

(3) If a person collects an amount as if it were tax imposed under this Act or if a person who is not a collector collects an amount of tax imposed under this Act, the person must remit the amount collected to the government on or before the prescribed date and in the prescribed manner.

(4) A direct seller must remit to the government, on or before the prescribed date and in the prescribed manner, amounts of tax under section 99 (4) collected by the direct seller.

Designation of collector if agent and principal

179.1   (1) In this section:

"designated collector" means the person designated under subsection (2) (b) during the period the designation is in effect;

"designation" means a designation under subsection (2);

"sale, provision or lease" means a sale, provision or lease referred to in subsection (2) (a).

(2) Subject to subsection (3), this section applies if

(a) a person acts as agent in selling or providing tangible personal property, software or a taxable service or in leasing as lessor tangible personal property on behalf of another person acting as principal, and

(b) the persons referred to in paragraph (a) jointly designate, in accordance with subsection (4), one of them as having the obligation to perform the duties referred to in subsection (8) (a) (i) to (iii) in relation to tax under this Act.

(3) This section does not apply in relation to

(a) tangible personal property, software or a taxable service sold by auction, or

(b) tangible personal property, software or taxable services, other than legal services, sold, provided or leased, as applicable, through an online marketplace.

(4) In order to jointly designate a person for the purposes of subsection (2) (b), the agent or principal must file with the director, on or before the prescribed date and in the manner specified by the director,

(a) a designation in a form specified by the director, and

(b) any information required by the director.

(5) A designated collector must,

(a) subject to paragraph (b), be a registrant, or

(b) if not a registrant at the time of the sale, provision or lease, be registered under section 168 on or before the date prescribed for the purposes of subsection (4) of this section.

(6) If a person designated as the designated collector is not registered under section 168 on or before the date prescribed for the purposes of subsection (4) of this section, the person's designation is void.

(7) If a person is designated as the designated collector and the person's registration under section 168 is suspended or cancelled, the person's designation is cancelled at the time the person's registration is suspended or cancelled.

(8) If this section applies in relation to a sale, provision or lease,

(a) the designated collector, and not the person who is the other party to the designation, must do all of the following:

(i) levy and collect the tax under section 179 (1);

(ii) remit under section 179 (2) the amount of tax levied;

(iii) file a collector's return in respect of the tax, and

(b) despite paragraph (a) of this subsection and subsection (9) of this section, the agent and the principal are jointly and severally liable to pay an amount assessed or imposed against the designated collector in respect of the tax if the director

(i) makes an assessment in respect of that tax under section 198 [assessment of tax not remitted by collector] or 199 (2), (2.1) or (3) [assessment if amount not remitted or if excess deduction or refund],

(ii) imposes a penalty in respect of that tax under section 203 [failure to levy tax] or 205 (c) [failure to levy, remit or pay tax and excess deduction or refund], or

(iii) assesses interest in respect of that tax under section 206 [interest until notice of assessment given] or 206.1 [interest after notice of assessment given].

(9) Subsection (8) (a) applies despite sections 179 (1) and (2) and 186 if, in respect of the tax, those sections apply to a person who is a party to the designation and not the designated collector.

(10) If a person acts as agent of a principal in charging and collecting consideration and in levying and collecting tax as required under this Act in respect of a sale, provision or lease made or entered into by the principal but the person does not act as agent in making or entering into the sale, provision or lease, the person is deemed to have acted as agent of the principal in making or entering into the sale, provision or lease for the purposes of subsection (2).

(11) The persons who jointly made a designation may, in a form specified by the director and filed with the director in the manner specified by the director, jointly revoke the designation with respect to any sale, provision or lease made or entered into on or after the effective date specified in the revocation.

(12) On application, in a form and manner specified by the director, by one of the persons who jointly made a designation, the director may cancel the designation with respect to any sale, provision or lease made or entered into on or after the date the cancellation takes effect.

(13) The director must deliver a notice of cancellation to the persons who made the designation.

(14) Cancellation of a designation under subsection (12) takes effect on the later of

(a) the date the notice of cancellation is delivered to the last person of all the persons to whom it must be delivered, and

(b) the date stated in the notice.

(15) Subject to subsection (16), the following provisions do not apply to a person who is a party to a designation that is in effect unless a provision applies to the person in respect of another sale, provision or lease to which the designation does not apply:

(a) section 169 (1) [vendor of tangible personal property must be registered];

(b) section 169 (2) [lessor of tangible personal property must be registered];

(c) section 169 (3) [vendor of software must be registered];

(d) section 169 (4) [vendor of taxable service must be registered];

(e) section 171 (1) [direct seller must be registered];

(f) section 171 (2) [direct seller located in Canada but outside British Columbia must be registered];

(g) section 172 (1) [person located in Canada but outside British Columbia must be registered — tangible personal property];

(g.1) section 172 (1.1) [person located in Canada but outside British Columbia must be registered — orders in British Columbia with minimum revenue threshold];

(h) section 172 (2.1) [person located in Canada but outside British Columbia must be registered — software or telecommunication service];

(i) section 172.1 (1) [person located outside British Columbia must be registered — tangible personal property];

(j) section 172.1 (1.1) [person located outside British Columbia must be registered — software or telecommunication service].

(16) Subsection (15) applies to

(a) a person who is a designated collector during the period from the time of the sale, provision or lease until the person becomes a registrant, if the person is registered under section 168 on or before the date prescribed for the purposes of subsection (4) of this section and despite any requirement to otherwise be registered under section 168 on or before that date, or

(b) a person who is not the designated collector.

Collection of tax if sale by auction

179.2   (1) If a collector, acting as auctioneer and agent for another person, sells by auction, on behalf of the other person, tangible personal property, software or a taxable service to a purchaser, the sale is deemed, for the purposes of this Act, to be a sale made by the collector and not by the other person.

(2) Subsection (1) does not apply to a sale if the collector and the other person jointly elect, in a form specified by the director and filed with the director in the manner specified by the director, that the sale is not deemed to be made by the collector.

(3) The exception in subsection (2) does not apply if the collector is an online marketplace facilitator.

Collection of tax if sale or lease is facilitated by online marketplace facilitator

179.3   (1) If an online marketplace facilitator who is a registrant or who is required under section 172.3 [online marketplace facilitator must be registered] to be registered facilitates an online marketplace seller's sale, provision or lease through an online marketplace,

(a) the online marketplace facilitator is a collector in respect of the sale, provision or lease,

(b) the online marketplace seller is not a collector in respect of the sale, provision or lease, and

(c) the sale, provision or lease is deemed, for the purposes of Part 8 of this Act other than section 172.3 and this section, to be made by the online marketplace facilitator and not by the online marketplace seller.

(2) If subsection (1) applies in relation to an online marketplace seller's sale, provision or lease, the online marketplace facilitator and online marketplace seller are jointly and severally liable to pay an amount assessed or imposed against the online marketplace facilitator in respect of the tax if the director

(a) makes an assessment in respect of that tax under section 198 [assessment of tax not remitted by collector] or 199 (2), (2.1) or (3) [assessment if amount not remitted or if excess deduction or refund],

(b) imposes a penalty in respect of that tax under section 203 [failure to levy tax] or 205 (c) [failure to levy, remit or pay tax and excess deduction or refund], or

(c) assesses interest in respect of that tax under section 206 [interest until notice of assessment given] or 206.1 [interest after notice of assessment given].

Collection of tax by independent sales contractor

180   (1) An independent sales contractor who sells or provides an exclusive product to a purchaser must levy and collect the tax imposed under section 37 at the time the tax is payable in accordance with section 28.

(2) An independent sales contractor of a direct seller who sells or provides an exclusive product to another independent sales contractor of the direct seller in British Columbia must levy and collect the tax under section 99 (2) at the time the tax is payable in accordance with section 28.

(3) Despite sections 179 (3) and 184, if an independent sales contractor has paid tax imposed under section 99 in respect of an exclusive product, the independent sales contractor may retain the amount collected under subsection (1) or (2) of this section.

(4) Despite sections 179 (3) and 184, if an independent sales contractor has paid tax imposed under section 165 (2), 212.1 or 218.1 or Division IV.1 of Part IX of the Excise Tax Act, in respect of British Columbia as a participating province under Part IX of that Act, in relation to an exclusive product and for which the independent sales contractor has not obtained and is not entitled to obtain a refund, credit or rebate under Part IX of that Act, the independent sales contractor may retain the amount collected under subsection (1) or (2) of this section.

Collection of tax under section 127

181   If a person referred to in section 127 (1) alleges that the person is exempt under section 127 (3) from tax imposed under that section in relation to a portion of the purchase price, a collector's obligation under section 179 (1) to levy and collect the tax is considered to be met,

(a) if the collector has reason to believe that an estimate made under section 127 (4) in relation to the legal services is reasonable, by levying and collecting the amount of tax payable under section 127 in accordance with the estimate, or

(b) if the collector has reason to believe that an estimate made under section 127 (4) in relation to the legal services is not reasonable, by

(i) making a reasonable estimate, subject to the regulations, of that portion of the purchase price that relates to legal services referred to in section 127 (3) (b), and

(ii) levying and collecting the tax payable under section 127 in accordance with the reasonable estimate made under subparagraph (i) of this paragraph.

Collection of tax on liquor sold under liquor permit

182   (1) If tax is imposed under section 37 in relation to liquor sold under a liquor permit by the holder of the permit, the holder of the permit must levy and collect the tax at the time the tax is payable in accordance with section 28.

(2) Despite sections 179 (3) and 184, if the holder of the permit has paid or remitted all amounts payable by the holder under section 98 in respect of the liquor purchased for sale under the liquor permit, the holder of the permit may retain the amount collected.

Transition — remittance of tax on liquor sold under special occasion licence

182.1   (1) This section applies to a holder of a special occasion licence in relation to liquor sold under the licence if

(a) the licence is issued before April 1, 2013, and

(b) on or after April 1, 2013, the holder of the licence sells the liquor.

(2) Despite sections 179 (3) and 182 (2), the holder of the special occasion licence must remit to the government an amount equal to the amount of tax levied under this Act by the holder in relation to the sale of the liquor, whether or not collected, less the total of

(a) the amount of tax under section 37 previously paid, in accordance with section 98 (1), by the holder of the licence in relation to the purchase of the liquor and for which the holder has not obtained and is not entitled to obtain a refund under this Act, and

(b) the amount of tax under section 165 (2), 212.1 or 218.1 or Division IV.1 of Part IX of the Excise Tax Act, in respect of British Columbia as a participating province under Part IX of that Act, previously paid by the holder of the licence in relation to the purchase of the liquor and for which the holder has not obtained and is not entitled to obtain a refund, credit or rebate under Part IX of that Act.

(3) Despite section 179 (2), an amount to be remitted under subsection (2) of this section must be remitted to the government on or before the last day of the month after the month in which the special occasion licence expires.

(4) A holder of a special occasion licence who must remit an amount under subsection (2) must file with the director at the time the amount is remitted a return in a form specified by the director.

Collection of tax on liquor sold by auction

182.2   (1) A person, other than a collector, who sells liquor by auction is an agent of the government for the purposes of levying and collecting the tax imposed under section 37 on that sale.

(2) As agent under subsection (1), a person must levy and collect tax as required under this Act.

(3) If tax is imposed under section 37 in relation to liquor sold by auction by a person who is not a collector, the person must levy and collect the tax at the time the tax is payable in accordance with section 28.

(4) A person who must levy and collect tax in accordance with subsection (3) must, on or before the prescribed date and in the prescribed manner, remit to the government amounts of tax levied under that subsection by the person, whether or not collected.

(5) Section 179 (3) does not apply to a person in relation to an amount the person must collect under subsection (3) of this section.

Duties of small seller

183   (1) Subject to section 182 (1), a small seller must not levy or collect tax under this Act.

(2) A small seller must keep records as required by the regulations.

Tax collected deemed to be held in trust for government

184   If a person collects an amount of tax imposed under this Act or collects an amount as if it were tax imposed under this Act,

(a) the person is deemed to hold the amount in trust for the government until the amount is remitted to the government at the time and in the manner required under this Act, and

(b) the amount collected is deemed to be held separate from and does not form a part of the person's money, assets or estate, whether or not the amount collected has in fact been kept separate and apart from either the person's own money or the assets of the estate of the person who collected the amount.

Allowance for collection of tax

185   (1) Subject to subsection (1.1) and the regulations, a registrant who remits tax to the government as required under this Act in relation to a reporting period may deduct from the remittance and retain a prescribed allowance for the reporting period.

(1.1) Subsection (1) does not apply in relation to a remittance of tax imposed under section 123.

(2) Despite any other Act, a person retaining an allowance under this section is not, by retaining the allowance, made ineligible as a member of the Legislative Assembly of British Columbia.

Collector's returns

186   (1) The following persons must file with the director, on or before the prescribed date and in the prescribed manner, a return in a form specified by the director:

(a) a collector;

(b) a person, other than a collector, who collects an amount of tax imposed under this Act, other than an amount of tax imposed in relation to a sale of liquor by auction;

(c) a person, other than a collector, who collects an amount as if it were tax imposed under this Act;

(d) a person, other than a collector, who sells liquor by auction.

(2) At the time of filing a return under subsection (1), the person must submit to the director any information required by the director.

Certificate required for bulk transaction

187   (1) In this section:

"bulk transaction" means any of the following:

(a) a disposition of substantially all of the inventory in British Columbia of a collector's business;

(b) a disposition of substantially all of a collector's tangible personal property or software in British Columbia that is used in the collector's business carried on in British Columbia;

(c) a disposition of an interest in a collector's business carried on in British Columbia;

"collector's business", in relation to a bulk transaction made, or proposed to be made, by a collector, means the collector's business referred to in paragraph (a), (b) or (c), as the case may be, of the definition of "bulk transaction".

(2) If a person purchases tangible personal property, software or an interest in a business from a collector through a bulk transaction without obtaining from the collector a duplicate copy of the certificate obtained under subsection (3), the person must pay to the government an amount equal to the total of all amounts owing under this Act, on the date of the bulk transaction, by the collector in respect of the collector's business.

(3) On application in a form and manner specified by the director, the director may issue a certificate in duplicate to a collector in respect of a proposed bulk transaction if all amounts owing under this Act by the collector in respect of the collector's business have been paid.

(4) An amount payable under subsection (2) in respect of a bulk transaction must be paid on or before the last day of the month after the month in which the bulk transaction occurred.

(5) Despite subsection (4), an amount payable under subsection (2) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Prohibited advertising or other representations

188   A collector or an independent sales contractor must not, directly or indirectly, advertise or hold out or state to the public or to any purchaser or lessee that the tax or any part of it that must be levied and collected under this Act by the collector or independent sales contractor

(a) will be assumed or absorbed by the collector or independent sales contractor,

(b) will not be considered as part of the amount payable by the purchaser or lessee, or

(c) will be refunded.

Liability satisfied if tax collected

189   (1) In this section, "collector" includes an independent sales contractor and a holder of a liquor permit.

(2) If a collector is required to levy and collect tax imposed under this Act, the liability of a person who is required to pay the tax is satisfied if the tax is collected by the collector.

(3) If a collection agent, the Insurance Corporation of British Columbia or a jurisdiction prescribed for the purposes of section 70 (2) collects tax imposed under this Act, the liability of a person who is required to pay the tax is satisfied.

Payment first applied against tax payable

190   (1) In this section, "collector" includes an independent sales contractor and a holder of a liquor permit.

(2) If a collector levies a tax imposed under this Act in respect of a purchase or lease of tangible personal property or a purchase of software or a taxable service, any amount paid to the collector in respect of the purchase or lease is deemed to be first applied against the tax payable in respect of that purchase or lease.

Agreement with federal government

191   (1) The minister may, on behalf of the government, enter into an agreement with the government of Canada or an agent of the government of Canada respecting the administration and enforcement of this Act in respect of tangible personal property that is

(a) brought or sent into British Columbia from outside Canada by a resident taxpayer, or

(b) delivered in British Columbia from outside Canada to a resident taxpayer.

(2) An agreement entered into under subsection (1) must specify the circumstances under which the collection agent may require that a resident taxpayer claiming an exemption from tax must nevertheless pay the tax to the collection agent.

(3) An agreement entered into under subsection (1) may authorize payment to the government of Canada or the agent of the government of Canada in respect of services provided under the agreement.

(4) Payments in respect of the ongoing costs of services provided under the agreement entered into under subsection (1) may be retained by the government of Canada or the agent of the government of Canada out of the amounts collected on behalf of the government of British Columbia.

(5) The minister may pay from the consolidated revenue fund any amount payable by the government under the agreement entered into under subsection (1).

(6) The government of Canada or the agent of the government of Canada may, as agent of the government of British Columbia, act in accordance with the agreement entered into under subsection (1) to

(a) collect tax owing in respect of tangible personal property that is released by a collection agent without payment of all or part of the tax imposed under Division 5 [Property Brought into British Columbia from Outside Canada] of Part 3, and

(b) refund an amount charged or collected by a collection agent that is in excess of the amount of tax payable in respect of the tangible personal property.

Division 3 — Taxpayer Returns

When a person must file a taxpayer return

192   (1) A person who is not a registrant must file a taxpayer return with the director if the person must pay tax imposed under any of the following sections:

(a) section 37 [tax on purchase], but only in relation to tax imposed under section 37 in accordance with section 88 [tax if leased tangible personal property becomes part of real property];

(a.1) section 41 [tax if leased property used in British Columbia during rental period];

(b) section 51 [tax if tangible personal property brought into British Columbia for temporary use];

(b.1) section 51.1 [tax if tangible personal property no longer for temporary use];

(c) section 60 [tax if conveyance purchased in British Columbia for interjurisdictional use];

(d) section 61 [tax if sale and lease-back of conveyance];

(d.1) section 61.1 [tax if sale and lease-back of conveyance for which tax paid under former Act];

(e) section 62 [tax if leased conveyance used in British Columbia];

(f) section 63 [tax if conveyance brought into and used in British Columbia];

(g) section 64 [tax if change in use of conveyance acquired for resale];

(h) section 66 [adjustment of tax];

(i) section 71 [adjustment of tax under section 69];

(i.1) section 80.3 [tax on tangible personal property used to improve real property if contractor obtained refund];

(i.2) section 80.4 [tax if change in use of tangible personal property used to improve real property];

(i.3) section 80.5 [transitional tax on tangible personal property used by contractor to improve real property];

(i.4) and (i.5) [Repealed 2013-1-283.]

(j) section 81 [tax if change in use of property acquired for resale];

(k) section 82 [tax if property used for new purpose];

(k.01) section 82.01 [tax if leased property used for new purpose];

(k.1) section 82.1 [tax on parts or material if property containing parts or material used for new purpose];

(k.2) section 82.2 [tax if conditions for exemption not maintained for specified period];

(k.3) section 82.3 [tax if change in use of vehicle, boat or aircraft exempt from tax under Consumption Tax Rebate and Transition Act];

(l) section 83 [tax if change in use of property acquired for lease];

(m) section 84 [tax if change in use of resulting tangible personal property];

(m.1) section 84.1 [tax if dealer or manufacturer change use of motor vehicle];

(n) section 85 [tax if change in use of prototype];

(o) [Repealed 2013-1-282.]

(p) section 87 [tax if recording exhibited];

(p.1) section 102 [tax on leased property occasionally supplied with operator];

(p.2) section 106 [tax on use of software on device in British Columbia];

(q) section 107 [tax on business use of software on devices in and outside British Columbia];

(r) section 108 [adjustment of tax under section 107];

(s) section 109 [tax if use of software changes];

(s.1) section 109.1 [tax if conditions of exemption for software not maintained for specified period];

(t) section 110 [tax if change in use of resulting software, telecommunication service or tangible personal property];

(u) [Repealed 2013-1-282.]

(u.1) section 117.1 [tax if resulting property used for new purpose];

(v) section 120 [tax if related service provided outside British Columbia];

(v.1) section 120.1 [tax if change in use of related service];

(v.2) section 123.2 [tax if change in use of accommodation purchased for resale];

(v.3) section 123.3 [tax if accommodation used for new purpose];

(v.4) section 130.1 [tax on telecommunication service purchased substantially for resale];

(v.5) section 130.2 [additional tax on telecommunication service purchased substantially for resale];

(v.6) section 130.3 [tax on telecommunication service if no longer substantially for resale];

(v.7) section 132.1 [tax if telecommunication service used for new purpose];

(w) section 133 [tax if motion picture exhibited];

(w.1) section 134.5 [tax if online marketplace service used for new purpose];

(x) section 187 [certificate required for bulk transaction];

(y) section 222 [responsibility of person having control of property].

(2) A person must file a taxpayer return with the director if the person must pay tax imposed under section 69 [tax if multijurisdictional vehicle licensed] in accordance with section 70 (1) (b).

(3) A person must file a taxpayer return with the director if the person must pay tax imposed under any of the following sections:

(a) section 86 [tax if change in use of property for which refund received under taxation agreement];

(b) section 111 [tax if change in use of software for which refund received under taxation agreement].

Taxpayer return

193   (1) A taxpayer return must be in a form specified by the director.

(2) If a person must file a taxpayer return in relation to tax imposed under this Act, the person must file the taxpayer return on or before the prescribed date and in the prescribed manner.

(3) At the time of filing a taxpayer return, the person must submit to the director any information required by the director.

Part 9 — Administration and Enforcement

Division 1 — Inspections and Audits

Inspection and audit powers

194   (1) In this section, "specified location" means premises, a site, a vehicle, a boat, an aircraft or any other place or thing

(a) occupied or used by a person in relation to a business carried on by the person,

(b) where or in which the records of a person are kept, or

(c) at, in or from which

(i) tangible personal property is manufactured, sold, leased, stored or used,

(ii) software is developed, sold, stored or used, or

(iii) a taxable service is provided, sold or used.

(2) Except as limited by subsections (4) and (6), to determine whether this Act and the regulations are being or have been complied with, the director may enter at any reasonable time a specified location, occupied by a person, and may do any of the following at the specified location:

(a) inspect, audit and examine records;

(b) inspect tangible personal property manufactured, acquired, sold, leased, stored or used by the person;

(c) inspect software developed, provided, acquired or sold by the person;

(d) inspect a related service or a telecommunication service provided, acquired or sold by the person;

(e) inspect accommodation offered or available for sale, provided, acquired, sold or used by the person;

(f) inspect or ascertain the quantity, value or use of tangible personal property manufactured, acquired, sold, leased, stored or used by the person;

(g) inspect or ascertain the volume, value or use of software developed, provided, acquired, sold, stored or used by the person;

(h) inspect or ascertain the volume, value or use of a related service or a telecommunication service provided, acquired, sold, stored or used by the person;

(i) inspect or ascertain the volume, value or use of accommodation offered or available for sale, provided, acquired, sold or used by the person;

(j) inspect the specified location and any activities carried out at the specified location.

(3) A person occupying a specified location must

(a) produce all records as may be required by the director, and

(b) answer all questions of the director regarding the matters referred to in subsection (2).

(4) The power to enter a place under subsection (2) must not be used to enter a dwelling occupied as a residence without the consent of the occupier except under the authority of a warrant under subsection (5).

(5) On being satisfied by evidence on oath that there are in a place records or other things for which there are reasonable grounds to believe that they are relevant to the matters referred to in subsection (2), a justice may issue a warrant authorizing a person named in the warrant to enter the place in accordance with the warrant in order to exercise the powers referred to in subsection (2) (a) to (j).

(6) Except in accordance with the regulations, the power to inspect, audit and examine records under subsection (2) (a) must not be used to inspect, audit and examine a record that is in the possession of a lawyer if the lawyer at that time claims that a particular client or a particular former client of the lawyer has solicitor-client privilege in relation to the record.

(7) A person must not

(a) interfere with, hinder or molest a person doing anything that the person is authorized to do under this section, or

(b) prevent or attempt to prevent a person from doing anything that the person is authorized to do under this section.

Requirement to provide records

195   When required by the director, a person must provide to the director all records that the director considers necessary to determine whether this Act and the regulations are being or have been complied with.

Demand for information

196   (1) For any purpose related to the administration or enforcement of this Act or the regulations, the director may, by demand notice, require from any person

(a) a return under this Act,

(b) any information or additional information,

(c) the production of any records, or

(d) a written statement.

(2) A demand notice under subsection (1)

(a) must be given to the person in a manner referred to in section 229 (2) (a) to (e) or sent by registered mail to the last known address of the person according to the records of the director,

(b) must specify a reasonable time by which the person must comply with the demand notice, and

(c) in relation to a requirement under subsection (1) (d), may require the written statement to be made by way of affidavit or statutory declaration.

(3) A person to whom a demand notice is given under this section must comply with the notice within the time specified in the notice.

(4) An affidavit by the director in which are stated the facts necessary to establish

(a) compliance by the director with this section, or

(b) default by a person on whom a demand was made under this section

must be admitted as evidence in any court and is proof, in the absence of evidence to the contrary, of the facts stated.

Evidence — copies of records

196.1   A record certified by the director to be a copy of a record obtained by the director under this Act is evidence of the nature and content of the original.

Fee for attending at location outside British Columbia

196.2   (1) If the director is satisfied that it is necessary to attend at a location outside British Columbia for the purpose of determining whether a person is complying with or has complied with this Act and the regulations, the director may impose on the person a fee payable to the government in an amount not exceeding the amount calculated under subsection (2) in respect of attending at that location.

(2) Subject to the regulations, the director may calculate the amount for the purposes of subsection (1) based on

(a) fees set by the director, or

(b) a manner of calculating fees that is set by the director.

(3) For the purposes of subsection (2), the fees and manner set by the director may be different for different circumstances defined by the director or for attending at different locations.

(4) In imposing a fee under subsection (1), the director may not impose a fee in respect of attending at a location more than 4 years before the date of the first notice of assessment for that fee.

Division 2 — Assessments

Notice of assessment

197   (1) Subject to subsection (3), the director must give a notice of assessment to the person liable to pay an amount assessed or imposed if the director

(a) makes an assessment under section 198 [assessment of tax not remitted by collector], 199 [assessment if amount not paid or remitted or if excess deduction or refund], 199.1 [assessment if joint and several liability for amount assessed or imposed against designated collector], 199.2 [assessment if joint and several liability for assessment or penalty] or 210 [assessment against board member], or

(b) imposes a fee under section 196.2 [fee for attending at location outside British Columbia] or imposes a penalty under section 202 [failure to register], 203 [failure to levy tax], 204 [incorrect information] or 205 [failure to levy, remit or pay tax and excess deduction or refund].

(1.1) Despite section 51 (1) (b) [notice of assessment] of the Carbon Tax Act, the director may include in a notice of assessment given to a person under subsection (1) of this section a fee imposed under section 43.1 [fee for attending at location outside British Columbia] of the Carbon Tax Act as if the fee were a fee imposed under section 196.2 of this Act if

(a) the director imposes on the person a fee under section 196.2,

(b) the director under the Carbon Tax Act imposes on the person a fee under section 43.1 of the Carbon Tax Act, and

(c) the director under the Carbon Tax Act authorizes the director under this Act to include the fee imposed under the Carbon Tax Act in the notice of assessment.

(1.2) Despite section 46 (1) (b) [notice of assessment] of the Motor Fuel Tax Act, the director may include in a notice of assessment given to a person under subsection (1) of this section a fee imposed under section 41.1 [fee for attending at location outside British Columbia] of the Motor Fuel Tax Act as if the fee were a fee imposed under section 196.2 of this Act if

(a) the director imposes on the person a fee under section 196.2,

(b) the director under the Motor Fuel Tax Act imposes on the person a fee under section 41.1 of the Motor Fuel Tax Act, and

(c) the director under the Motor Fuel Tax Act authorizes the director under this Act to include the fee imposed under the Motor Fuel Tax Act in the notice of assessment.

(2) If the director assesses interest under section 206 or 206.1, the director may give a notice of assessment to the person liable to pay the amount of interest assessed.

(3) In addition to, or as an alternative to, giving a notice of assessment under subsection (1) or (2), the director may give a notice of assessment to the custodian or trustee in bankruptcy of the person referred to in subsection (1) or (2).

(4) Evidence that a notice of assessment under subsection (1) or (2) has been given is proof, in the absence of evidence to the contrary, that the amount assessed or imposed under this Act is due and owing, and the onus of proving otherwise is on the person liable to pay the amount assessed or imposed.

(5) Subject to being amended, changed or varied on appeal or by reassessment, an assessment or penalty made or imposed under this Act is valid and binding despite any error, defect or omission in the assessment or penalty or in procedure.

(6) Subject to being amended, changed or varied by reassessment, a fee imposed under section 196.2 is valid and binding despite any error, defect or omission in the fee or in procedure.

Assessment of tax not remitted by collector

198   If a collector fails to file a collector's return as required under this Act or if the records of a collector do not substantiate a collector's return filed by the collector, the director may

(a) estimate, in a manner and by a procedure the director considers adequate and expedient, the amount of tax that a collector was required to remit under section 179 but has not remitted, and

(b) make an assessment against the collector for the amount estimated under paragraph (a).

Assessment if amount not paid or remitted or if excess deduction or refund

199   (1) If it appears from an inspection, audit or examination or from other information available to the director that a person has not paid the taxes the person is liable to pay as required under this Act, the director may

(a) calculate, in a manner and by a procedure the director considers adequate and expedient, the tax not paid, and

(b) make an assessment against the person for the amount calculated under paragraph (a).

(2) If it appears from an inspection, audit or examination or from other information available to the director that a person has levied tax or collected an amount as if it were tax and the person has not remitted the tax or the amount collected as required under this Act, the director must

(a) calculate, in a manner and by a procedure the director considers adequate and expedient, the tax or amount not remitted, and

(b) make an assessment against the person for the tax or amount calculated under paragraph (a).

(2.1) If it appears from an inspection, audit or examination or from other information available to the director that a person has deducted an amount under section 159 (3) [refund or deduction for bad debts] that was in excess of the amount that the person was entitled to deduct under that section, the director must

(a) calculate, in a manner and by a procedure the director considers adequate and expedient, the excess amount deducted, and

(b) make an assessment against the person in an amount equal to the amount calculated under paragraph (a) of this subsection.

(3) If it appears from an inspection, audit or examination or from other information available to the director that a person has received a refund of tax under this Act or has deducted an amount under section 160 (2) [refund to collector] that was in excess of the refund amount that was due to the person, the director must

(a) calculate, in a manner and by a procedure the director considers adequate and expedient, the excess amount refunded or deducted, and

(b) make an assessment against the person in an amount equal to the amount calculated under paragraph (a) of this subsection.

(3.1) If it appears from an inspection, audit or examination or from other information available to the director that a person is required under the regulations to repay all or part of a refund paid to the person under this Act, the director must

(a) calculate, in a manner and by a procedure the director considers adequate and expedient, the amount required to be repaid, and

(b) make an assessment against the person in an amount equal to the amount calculated under paragraph (a).

(4) If it appears from an inspection, audit or examination or from other information available to the director that a person has not paid an amount required to be paid under section 187 (2) [certificate required for bulk transaction], the director must

(a) calculate, in a manner and by a procedure the director considers adequate and expedient, the amount required to be paid under that section, and

(b) make an assessment against the person in an amount equal to the amount calculated under paragraph (a) of this subsection.

(5) If it appears from an inspection, audit or examination or from other information available to the director that a person has not paid an amount required to be paid under section 222 (4) [responsibility of person having control of property], the director must

(a) calculate, in a manner and by a procedure the director considers adequate and expedient, the amount required to be paid under that section, and

(b) make an assessment against the person in an amount equal to the amount calculated under paragraph (a) of this subsection.

Assessment if joint and several liability for amount assessed or imposed against designated collector

199.1   (1) In this section, "designated collector" has the same meaning as in section 179.1.

(2) If a person is jointly and severally liable to pay an amount referred to in section 179.1 (8) (b) as an amount assessed or imposed against a designated collector in respect of tax, the director may assess the person for the following:

(a) the amount assessed under the following sections against the designated collector in respect of the tax, any related penalty and any interest on that amount and the penalty:

(i) section 198 [assessment of tax not remitted by collector];

(ii) section 199 (2) [assessment if amount not remitted];

(iii) section 199 (2.1) [assessment if excess deduction];

(iv) section 199 (3) [assessment of amount if excess deduction or refund];

(b) the amount imposed under section 203 [failure to levy tax] on the designated collector in respect of the tax, any related penalty and any interest on that amount and the penalty.

(3) Section 200 applies to an assessment made under subsection (2) (a) of this section as if the assessment were made under section 198 or 199.

(4) If the director makes an assessment under subsection (2) (b) against a person and the person pays to the government an amount in respect of a penalty imposed under section 203 (1) or (1.1), then section 203 (2.1) and (2.2) applies to the person as if the person were the collector in relation to the tax.

(5) Section 203 (3) and (4) applies to an assessment made under subsection (2) (b) of this section as if the amount assessed were a penalty imposed under section 203.

Assessment if joint and several liability for assessment or penalty

199.2   (1) If a person is jointly and severally liable to pay an amount referred to in section 179.3 (2) [collection of tax if sale or lease is facilitated by online marketplace facilitator] as an amount assessed or imposed against an online marketplace facilitator in respect of tax, the director may assess the person for the following:

(a) the amount assessed under the following sections against the online marketplace facilitator in respect of the tax, any related penalty and any interest on that amount and the penalty:

(i) section 198 [assessment of tax not remitted by collector];

(ii) section 199 (2) [assessment if amount not remitted];

(iii) section 199 (2.1) [assessment if excess deduction];

(iv) section 199 (3) [assessment of amount if excess deduction or refund];

(b) the amount imposed under section 203 [failure to levy tax] on the online marketplace facilitator in respect of the tax, any related penalty and any interest on that amount and the penalty.

(2) Section 200 applies to an assessment made under subsection (1) (a) of this section as if the assessment were made under section 198 or 199.

(3) If the director makes an assessment under subsection (1) (b) against a person and the person pays to the government an amount in respect of a penalty imposed under section 203 (1) or (1.1), then section 203 (2.1) and (2.2) applies to the person as if the person were the collector in relation to the tax.

(4) Section 203 (3) and (4) applies to an assessment made under subsection (1) (b) of this section as if the amount assessed were a penalty imposed under section 203.

Assessment period under sections 198 and 199

200   (1) In making an assessment under section 198 or 199, the director must not include a period longer than 4 years before the date of the first notice of assessment.

(2) Despite subsection (1), the director may enter into a written agreement with a person in which the person waives subsection (1) and allows the director, in making an assessment under section 198 or 199, to include any period specified in the agreement.

(3) Despite subsections (1) and (2), in making an assessment under section 198 or 199, the director may include any period if the assessment relates to a contravention, of this Act or the regulations, involving wilful default or fraud.

Anti-avoidance rule

201   (1) In this section:

"avoidance transaction" means a transaction

(a) that, but for this section, would result, directly or indirectly, in a tax benefit, or

(b) that is part of a series of transactions that, but for this section, would result, directly or indirectly, in a tax benefit,

but does not include a transaction that may reasonably be considered

(c) to have been undertaken or arranged primarily for bona fide purposes other than for one or more of the following:

(i) to obtain a tax benefit;

(ii) to reduce, avoid or defer a tax, or another amount payable as or in respect of tax, under a law of Canada, British Columbia or another province;

(iii) to increase a refund of tax, or of another amount in respect of tax, under a law of Canada, British Columbia or another province, or

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

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

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

"tax benefit" means

(a) a reduction, avoidance or deferral of tax, or of another amount, payable under this Act, or

(b) an increase in a refund of tax, or of another amount, under this Act;

"tax consequences", in relation to a person, means any amount of tax or another amount that is payable or refundable to the person under this Act or that is relevant for the purposes of calculating that amount;

"transaction" includes an arrangement or event.

(2) For the purposes of this section, a series of transactions is deemed to include any related transactions completed in contemplation of the series.

(3) If a transaction is an avoidance transaction, the director may determine the tax consequences to a person in a manner that is reasonable in the circumstances in order to deny a tax benefit that, but for this section, would result, directly or indirectly, from that transaction or from a series of transactions that includes that transaction.

(4) Without limiting subsection (3), in determining the tax consequences to a person in a manner that is reasonable in the circumstances in order to deny a tax benefit that, but for this section, would result, directly or indirectly, from an avoidance transaction, the director may do one or both of the following:

(a) recharacterize the nature of a payment or other amount;

(b) ignore the tax effects that would otherwise result from the application of other provisions of this Act or the regulations.

(5) The tax consequences to a person, after the application of this section, must be determined only through an assessment made under section 199 or a penalty imposed under section 203.

Division 3 — Penalties and Interest

Failure to register

202   If the director is satisfied that a person wilfully contravened section 169 [vendors and lessors must be registered], 170 [contractor must be registered], 171 [direct seller must be registered], 172 [person located in Canada but outside British Columbia must be registered], 172.1 [person located outside British Columbia must be registered], 172.3 [online marketplace facilitator must be registered] or 172.4 [person who provides online marketplace services must be registered], in addition to imposing any other penalty under this Act, the director may impose on the person a penalty equal to 25% of the amount

(a) levied and remitted or required to be levied and remitted under this Act by the person for the period that person was not registered under section 168 as required under this Act, or

(b) calculated by the director, in a manner and by a procedure the director considers adequate and expedient, as the amount of tax not remitted by the person as required under this Act.

Failure to levy tax

203   (1) If it appears from an inspection, audit or examination or from other information available to the director that a collector has not levied tax as required under this Act, the director must

(a) calculate, in a manner and by a procedure the director considers adequate and expedient, the tax not levied, and

(b) impose on the collector a penalty equal to the amount calculated under paragraph (a).

(1.01) If the director must impose a penalty under subsection (1) and the director is satisfied that the person liable to pay the tax has paid the tax to the government or would be entitled to a refund of the tax if the person had paid the tax, the director, despite that subsection, may impose on the collector a penalty equal to the amount of the penalty that would otherwise be imposed under that subsection less the amount of tax paid to the government by that person or the amount of the refund of tax to which the person would be entitled.

(1.1) If it appears from an inspection, audit or examination or from other information available to the director that a collector has not levied tax under this Act in accordance with section 37 (3), (4), (5) or (6), 39 (4), 44 (2), 49 (9.1), (10), (11) or (12), 92 (2), 93 (4), 95 (3), 105 (3), 119 (2), 123.1, 130 (2.1) or (3), 134.3 (4) or 145 (1.1) or (2) when the collector had reason to believe that the person was not entitled to the claim alleged for the purposes of the applicable section, the director may

(a) calculate, in a manner and by a procedure the director considers adequate and expedient, the tax not levied, and

(b) impose on the collector a penalty equal to the amount calculated under paragraph (a) of this subsection.

(2) Money paid by a person to the government in respect of a penalty imposed under subsection (1) or (1.1) satisfies to the extent of the payment the original liability of the person who is required to pay the tax.

(2.01) If 2 or more persons are required to levy and collect tax in respect of a transaction,

(a) the director may impose the penalty required under subsection (1) on one of the persons, and

(b) the persons are jointly and severally liable for that penalty.

(2.1) A collector who has paid an amount imposed under subsection (1) or (1.1) may, in a court of competent jurisdiction, sue the person who was liable to pay the tax in order to recover an amount that may not exceed the difference between the amount imposed under subsection (1) or (1.1) and the amount of tax that the collector did not levy as required under this Act but that the person paid under this Act.

(2.2) The collector may retain any amount recovered in the legal proceeding referred to in subsection (2.1) as compensation for the amount paid under subsection (1) or (1.1).

(3) In imposing a penalty under subsection (1) or (1.1), the director must not impose a penalty in respect of

(a) a period that begins more than 4 years before the date of the first notice of assessment,

(b) a continuous period longer than 3 years, and

(c) more than one continuous period in the 4-year period referred to in paragraph (a).

(4) Despite subsection (3), the director may enter into a written agreement with a person in which the person waives subsection (3) and allows the director, in imposing a penalty under this section, to include any period specified in the agreement.

(5) Despite subsections (3) and (4), in imposing a penalty under this section, the director may include any period if the penalty is imposed as a result of a contravention, of this Act or the regulations, involving wilful default or fraud.

(6) Subsections (1), (1.01) and (2) to (5) apply in relation to tax that is to be levied and collected in accordance with section 182.2 (3) [collection of tax on liquor sold by auction] as if the person who must levy and collect that tax were a collector.

Incorrect information

204   (1) In prescribed circumstances, the director must impose on a person who has declared incorrect information in a declaration required under section 37 (6) (b) or 49 (12) (b) in relation to an exemption claimed by another person under section 80.1 (1) or (2) or 80.5 (7) a penalty equal to the amount of tax that was not paid in reliance on the declaration.

(2) If the director has imposed a penalty under subsection (1), the director may not make an assessment under section 199 (1) [assessment if amount not paid or remitted or if excess deduction or refund] against the person who claimed the exemption in reliance on the declaration provided by the person on whom the penalty under subsection (1) of this section was imposed.

(3) In imposing a penalty under this section, the director must not include a period longer than 4 years before the date of the first notice of assessment.

(4) Despite subsection (3), the director may enter into a written agreement with a person in which the person waives subsection (3) and allows the director, in imposing a penalty under this section, to include any period specified in the agreement.

(5) Despite subsections (3) and (4), in imposing a penalty under this section, the director may include any period if the penalty is imposed as a result of a contravention, of this Act or the regulations, involving wilful default or fraud.

Failure to levy, remit or pay tax and excess deduction or refund

205   In addition to imposing any other penalty under this Act, the director may do any of the following:

(a) if the director is satisfied that a person who collected tax or an amount as if it were tax wilfully failed to remit the tax or amount collected as required under this Act, impose on the person a penalty equal to 100% of the amount not remitted;

(b) in any case other than a case referred to in paragraph (a), if the director is satisfied that, by wilfully making a false or deceptive statement or by wilful default or fraud, a person

(i) evaded the payment of tax as required under this Act,

(ii) deducted an amount under section 159 (3) [refund or deduction for bad debts] that was in excess of the amount that the person was entitled to deduct under that section, or

(iii) received a refund of an amount under this Act, or deducted an amount under section 160 (2) [refund to collector], that was in excess of the refund amount that was due to the person,

impose on the person a penalty equal to 25% of, as applicable, the amount evaded or the excess amount deducted or received;

(c) in any case other than a case referred to in paragraph (a) or (b),

(i) if the director is satisfied that a person failed to levy, remit or pay any amount as required under this Act, impose on the person a penalty equal to,

(A) in prescribed circumstances, a prescribed amount that is less than 10% of the amount not levied, remitted or paid as required under this Act, or

(B) in any other case, 10% of the amount not levied, remitted or paid as required under this Act, and

(ii) if the director is satisfied that a person

(A) deducted an amount under section 159 (3) [refund or deduction for bad debts] that was in excess of the amount that the person was entitled to deduct under that section, or

(B) received a refund of an amount under this Act, or deducted an amount under section 160 (2) [refund to collector], that was in excess of the refund amount that was due to the person,

impose on the person a penalty equal to 10% of the excess amount deducted or received.

Interest until notice of assessment given

206   (1) In this section:

"non-assessed amount", in relation to a particular period, means an amount owing to the government under this Act for which a notice of assessment has not been given under this Act, including any interest on that amount that has accrued by the beginning of the period, but not including any penalty imposed under this Act and any interest on that penalty;

"refund amount", in relation to a person for a particular period, means an amount equal to the amount

(a) that the person is entitled to receive from the government as a refund under Part 7, including any interest on that amount that has accrued by the beginning of the period, and

(b) on which interest payable by the government would be accruing under the Financial Administration Act but for this section.

(2) Subject to this section, the director may assess at any time interest, calculated at the prescribed rate and in the prescribed manner, on an amount owing to the government under this Act until the date that a notice of assessment is given in relation to the amount owing.

(2.1) Interest may not be assessed under subsection (2) in relation to a fee imposed under section 196.2 [fee for attending at location outside British Columbia].

(3) The director must assess interest on a penalty imposed under section 203 as if the penalty were an amount owing to the government from the date the collector would have been required under this Act to remit the tax to the government if the collector had levied the tax as required under this Act.

(3.1) Subsection (3) applies in relation to a penalty imposed under section 203 on a person referred to in section 203 (6) as if the person were a collector.

(4) Subsection (5) applies in relation to an assessment of interest for a particular period if

(a) the director is satisfied, based on an inspection, audit or examination or on other information available to the director, that for the particular period

(i) a person owes a non-assessed amount to the government, and

(ii) the person is eligible to receive a refund amount from the government, and

(b) the non-assessed amount referred to in paragraph (a) (i) exceeds or equals the refund amount referred to in paragraph (a) (ii).

(5) In relation to an assessment of interest for a particular period to which this subsection applies, interest may be assessed under subsection (2) in relation to a non-assessed amount for the particular period by assessing interest on the amount equal to the non-assessed amount for the particular period less the refund amount for the particular period.

(6) If interest is assessed under subsection (2) for a particular period in accordance with subsection (5), despite the Financial Administration Act and the regulations under that Act, no interest is payable for the particular period by the government in relation to the person's refund amount.

(7) Subsection (8) applies in relation to a particular period if

(a) the director is satisfied, based on an inspection, audit or examination or on other information available to the director, that for the particular period

(i) a person owes a non-assessed amount to the government, and

(ii) the person is eligible to receive a refund amount from the government, and

(b) the refund amount referred to in paragraph (a) (ii) exceeds the non-assessed amount referred to in paragraph (a) (i).

(8) In relation to a particular period to which this subsection applies, interest may not be assessed under subsection (2) in relation to the non-assessed amount for the particular period.

(9) If interest may not be assessed under subsection (2) for a particular period in accordance with subsection (8), for the purposes of the regulations under section 27 (1) (c) of the Financial Administration Act, the amount owing by the government for the particular period is deemed to be reduced by the non-assessed amount for that particular period.

(10) For the purposes of this section, the director may determine, in a manner and by a procedure the director considers adequate and expedient, when an amount became owing to the government.

(11) For the purposes of this section and the regulations under section 27 (1) (c) of the Financial Administration Act, the director may determine, in a manner and by a procedure the director considers adequate and expedient, when an amount became owing by the government.

(12) For the purposes of this section, a period of time ends and a new period may begin if

(a) the non-assessed amount or refund amount changes, or

(b) a notice of assessment is given in relation to all or part of a non-assessed amount.

Interest after notice of assessment given

206.1   The director may assess at any time interest, calculated at the prescribed rate and in the prescribed manner, on an amount owing to the government under this Act from the date that a notice of assessment is given in relation to the amount owing.

Division 4 — Board Member's Liability

Board member's liability

207   (1) Subject to this section, if a corporation has failed to levy, collect or remit taxes as required under this Act, a board member of the corporation is jointly and severally liable with that corporation to pay an amount equal to the taxes that the corporation failed to levy, collect or remit during the term of the board member, any related penalty and any interest on that amount and the penalty.

(2) A board member is not liable under subsection (1) unless one of the following has occurred:

(a) a certificate has been filed under section 218 [summary proceedings] with respect to the amount the corporation is liable to pay under this Act;

(b) the corporation has been dissolved or has commenced liquidation or dissolution proceedings in any jurisdiction;

(c) the corporation has, under the Bankruptcy and Insolvency Act (Canada),

(i) made an assignment in bankruptcy,

(ii) filed a notice of intention to make a proposal with the official receiver, or

(iii) made a proposal under Division 1 of Part III of that Act;

(d) a bankruptcy order has been made against the corporation under the Bankruptcy and Insolvency Act (Canada);

(e) the corporation has obtained a court order granting a stay of proceedings under section 11.02 of the Companies' Creditors Arrangement Act (Canada);

(f) the corporation has been or is subject in any jurisdiction to a proceeding of a similar nature to a proceeding referred to in paragraphs (c) to (e).

(3) A board member is not liable under subsection (1) if the board member exercised the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances to prevent the corporation's failure to levy, collect or remit taxes as required under this Act.

Refunds when joint and several liability

208   (1) Despite section 152 (2) [refund if no obligation to pay or collect] or any regulation that requires the payment of a refund of amounts collected to a corporation, if the director is satisfied that the total of the amount paid by one or more board members of the corporation who are jointly and severally liable with the corporation under section 207 (1) and the amount, if any, paid by the corporation exceeds the amount owed by the corporation under this Act for the period that the board members who made the payments were jointly and severally liable with the corporation, the director must pay a refund from the consolidated revenue fund in accordance with the following:

(a) if only one board member paid all or part of the amount for which one or more board members and the corporation were jointly and severally liable under section 207 (1), refund to the board member the amount of the excess, up to the amount paid by the board member;

(b) if 2 or more board members paid the amount or a part of the amount for which board members and the corporation were jointly and severally liable under section 207 (1), refund to the board members the amount of the excess divided proportionately between the board members, up to the amount paid by each board member;

(c) after making the payment under paragraph (a) or (b), refund to the corporation any remaining amount of the excess, up to the amount paid by the corporation.

(2) A refund under subsection (1) (b) must be based on the ratio of the amounts paid by the board members who are jointly and severally liable under section 207 (1) for the applicable period of the refund.

(3) A refund may be paid under subsection (1) only to a board member who or corporation that has applied for a refund.

Deemed board member

209   (1) If the director has reason to believe that a person who was not a member of the board of directors of a corporation performed some or all of the functions of a member of the board of directors of the corporation, the director may request the person and the corporation to provide to the director the records and information required by the director to confirm or rebut that belief.

(2) Subject to subsection (3), the director may determine that a person performed some or all of the functions of a member of the board of directors of a corporation if

(a) the person who or the corporation that has been requested to provide records or information to the director under subsection (1) fails or refuses to comply with the request within a period of time considered by the director to be reasonable in the circumstances, or

(b) the records or information provided to the director under this subsection confirms that the person performed some or all of the functions of a member of the board of directors of the corporation.

(3) The director must not determine under subsection (2) (b) that a person performed some or all of the functions of a member of the board of directors of the corporation if the determination is based solely on

(a) the person participating in the corporation's management under the direction or control of a shareholder, one or more members of the board of directors or a senior officer of the corporation,

(b) the person being a lawyer, accountant or other professional whose primary participation in the management of the corporation was the provision of professional services to the corporation,

(c) the corporation being bankrupt and the person being a trustee in bankruptcy who participates in the management of the corporation or exercises control over its property, rights and interests primarily for the purposes of the administration of the bankrupt's estate, or

(d) the person being a receiver, receiver manager or secured creditor who participates in the management of the corporation or exercises control over any of its property, rights and interests primarily for the purposes of enforcing a debt obligation of the corporation.

(4) Subject to subsection (5), if the director determines under subsection (2) that a person performed some or all of the functions of a member of the board of directors of a corporation, the person is deemed to be a board member of the corporation for the purposes of this Act for a term that equals the period the person performed those functions.

(5) Subsection (4) does not apply to sections 165 [claim for refund] and 233 [offence by corporation].

(6) Immediately after the director makes a determination under subsection (2), the director must give written notice of the determination to

(a) the person to whom the determination relates, and

(b) the corporation.

Assessment against board member

210   (1) If the director decides that a board member is jointly and severally liable for an amount under section 207 (1), the director may assess the board member for the following:

(a) the amount assessed under section 198 [assessment of tax not remitted by collector] against the corporation as the tax the corporation was required to remit during the term of the board member, any related penalty and any interest on that amount and the penalty;

(b) the amount assessed under section 199 (2) [assessment if amount not paid or remitted or if excess deduction or refund] against the corporation for the corporation's failure to remit tax as required during the term of the board member, any related penalty and any interest on that amount and the penalty;

(c) the amount imposed under section 203 [failure to levy tax] on the corporation for the corporation's failure to levy tax as required during the term of the board member, any related penalty and any interest on that amount and the penalty.

(2) The director may not make an assessment under subsection (1) in respect of the liability of a board member under section 207 if

(a) the person is no longer a board member of that corporation, and

(b) it is more than 2 years after the last date that the person was a board member of that corporation.

Part 10 — Appeals

Appeal to minister

211   (1) An appeal to the minister lies from a decision of the director about any of the following:

(a) a determination under section 221 (12) [associated corporations];

(b) a refund of tax paid or remitted under this Act;

(c) a refusal to register a person under section 168 [registration];

(d) a suspension or cancellation of a person's registration under section 173 [suspension or cancellation of registration];

(e) an assessment under any of the following:

(i) section 198 [assessment of tax not remitted by collector];

(ii) section 199 [assessment if amount not paid or remitted or if excess deduction or refund];

(ii.1) section 199.1 [assessment if joint and several liability for amount assessed or imposed against designated collector];

(ii.2) section 199.2 [assessment if joint and several liability for assessment or penalty];

(iii) section 206 [interest until notice of assessment given];

(iii.1) section 206.1 [interest after notice of assessment given];

(iv) section 210 [assessment against board member];

(f) an imposition of a penalty under any of the following:

(i) section 202 [failure to register];

(ii) section 203 [failure to levy tax];

(iii) section 204 [incorrect information];

(iv) section 205 [failure to levy, remit or pay tax and excess deduction or refund].

(2) An appeal to the minister lies from a decision to disallow a refund applied for under section 57 [tax payable to collection agent even though exemption claimed].

(3) Written notice of the appeal must be given to the minister within 90 days after the date of the director's notice of decision.

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

(5) On receiving the notice of appeal, the minister must

(a) consider the matter,

(b) subject to subsection (6), affirm, amend or change the assessment, decision, amount imposed or nature of the assessment, and

(c) promptly give the appellant written notice of the result of the appeal.

(6) If an appeal relates to a matter referred to in subsection (1) (c), the minister may

(a) affirm the decision of the director, or

(b) direct the director to reconsider the application for registration under section 168.

(7) The minister may, in writing, delegate any of the minister's powers or duties under this section.

(8) A delegation under subsection (7) may be to a named person or to a class of persons.

Appeal to court

212   (1) A decision of the minister under section 211 may be appealed to the Supreme Court by way of a petition proceeding.

(2) The Supreme Court Civil Rules relating to petition proceedings apply to appeals under this section, but Rule 18-3 of those rules does not apply.

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

(4) In the petition filed under subsection (3), the government must be designated "Her Majesty the Queen in right of the Province of British Columbia".

(5) Within 14 days after the filing of the petition under subsection (3), the petition must be served on the government in accordance with section 8 of the Crown Proceeding Act.

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

(7) The court may

(a) dismiss the appeal,

(b) allow the appeal,

(c) vary the decision from which the appeal is made, or

(d) refer the decision back to the director for reconsideration.

(8) [Repealed 2021-18-68.]

Irregularities

213   An assessment made, or a fee or penalty imposed, under this Act by the director must not be varied or disallowed by a court because of an irregularity, informality, omission or error on the part of a person in the observation of any directory provision up to the date the notice of assessment is given.

Tax collection not affected by pending appeal

214   Neither the giving of a notice of appeal by a person nor a delay in the hearing of an appeal

(a) affects the date an amount, that is owing to the government under this Act and that is the subject matter of the appeal, is payable or required to be remitted under this Act,

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

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

If decision set aside or amount reduced or increased on appeal

215   (1) If the director's or the minister's decision is set aside, or the amount of an assessment or an amount imposed is reduced on appeal, the director must refund to the appellant from the consolidated revenue fund

(a) the amount or excess amount paid, and

(b) any additional interest paid.

(2) If the amount of an assessment or an amount imposed is increased on appeal, the appellant must pay to the government

(a) the additional amount owing to the government under this Act, and

(b) any additional interest payable on the additional amount owing to the government under this Act.

Part 11 — Recovery of Amounts Owing

Collection bond

216   (0.1) In this section, "maximum bond amount", in relation to a bond required to be deposited by a person with the director under this section, means 6 times the estimated amount, determined in a manner and by a procedure the director considers adequate and expedient, of

(a) tax that would normally be levied under this Act by the person in a month, and

(b) tax that would normally be paid under this Act by the person in a month.

(1) The director may require an applicant, as defined in section 168, or a registrant to deposit with the director a bond, by way of cash or other security, satisfactory to the director.

(2) The amount of the bond is to be determined by the director, but the amount must not be greater than the maximum bond amount.

(2.1) If there is a change in circumstances after a bond is provided under subsection (1), the director may vary the amount of the bond required, but the amount must not be greater than the maximum bond amount.

(3) If a person who has deposited a bond under this section fails to levy or pay tax or remit an amount in accordance with this Act, the director, after giving written notice to the person, may apply all or part of the bond to the amount that should have been levied, paid or remitted by the person, to any related penalty and to any interest on that amount and the penalty.

(4) The director may return a bond deposited under this section, or may pay from the consolidated revenue fund an amount equal to the amount remaining of a bond deposited under this section, to the person who deposited the bond if

(a) the person has ceased being a registrant, and

(b) the person as a registrant has no amount owing to the government under this Act.

Court proceeding to recover amount owing

217   The government may commence a proceeding in a court of competent jurisdiction to recover an amount owing to the government under this Act as a debt due to the government.

Summary proceedings

218   (1) If a person fails to pay or remit an amount owing to the government under this Act, the director may issue a certificate specifying the amount owed and the name of the person who owes it.

(2) The director may file with the Supreme Court a certificate issued under subsection (1).

(3) A certificate filed under subsection (2) has the same force and effect, and all proceedings may be taken on the certificate, as if it were a judgment of the court in favour of the government for the recovery of a debt in the amount specified in the certificate against the person named in the certificate.

(4) If the amount specified in a certificate is different from the actual amount owing to the government under this Act, the director may correct the amount by issuing a new certificate specifying the revised amount owed and the name of the person who owes it.

(5) The director may file with the Supreme Court a certificate issued under subsection (4).

(6) A certificate filed under subsection (5)

(a) revises the certificate filed under subsection (2) that names the same person,

(b) is deemed to be filed at the same time as the certificate it revises, and

(c) has the same force and effect, and all proceedings may be taken on the certificate, as if it were a judgment of the court in favour of the government for the recovery of a debt in the amount specified in the certificate against the person named in the certificate.

Alternative remedies

219   (1) Remedies available to the government for the recovery of an amount owing to the government under this Act may be exercised separately, concurrently or cumulatively.

(2) The liability of a person for the payment of an amount owing to the government under this Act is not affected by a fine or penalty imposed on or paid by the person for contravention of this Act.

Attachment of funds

220   (1) In this section, "taxpayer" means any person who is liable to pay or remit to the government an amount under this Act.

(2) If the director knows or suspects that a person is or is about to become indebted or liable to make a payment to a taxpayer, the director may demand that that person pay to the government on account of the taxpayer's liability under this Act all or part of the money otherwise payable to the taxpayer.

(3) Without limiting subsection (2), if the director knows or suspects that a person is about to advance money to or make a payment on behalf of a taxpayer, or make a payment in respect of a negotiable instrument issued by a taxpayer, the director may demand that that person pay to the government on account of the taxpayer's liability under this Act the money that would otherwise be advanced or paid.

(4) [Repealed 2019-36-58.]

(5) If under this section the director demands that a person pay to the government, on account of a taxpayer's liability under this Act, money otherwise payable by that person to the taxpayer as interest, rent, remuneration, a dividend, an annuity or other periodic payment, the demand

(a) is applicable to all of those payments to be made by the person to the taxpayer until the liability under this Act is satisfied, and

(b) operates to require payments to the government out of each payment of the amount stipulated by the director in the demand.

(6) Money or a beneficial interest in money in a savings institution

(a) on deposit to the credit of a taxpayer at the time a demand is given, or

(b) deposited to the credit of a taxpayer after a demand is given

is money for which the savings institution is indebted to the taxpayer within the meaning of this section, but money on deposit or deposited to the credit of a taxpayer as described in paragraph (a) or (b) does not include money on deposit or deposited to the credit of a taxpayer in the taxpayer's capacity as a trustee.

(7) A demand under this section continues in effect until the earliest of the following:

(a) subject to paragraphs (b) and (c), the demand is satisfied;

(b) subject to paragraph (c), 90 days after the demand is given;

(c) three years after the demand is given, if the demand is made in respect of an outstanding legal claim or insurance claim that, if resolved in the taxpayer's favour, will result in money becoming available to the taxpayer.

(8) Despite subsection (7), if a demand is made in respect of a periodic payment referred to in subsection (5), the demand continues in effect until it is satisfied unless no periodic payment is made or is liable to be made within 90 days after the demand is given, in which case the demand ceases to have effect at the end of that period.

(9) Money demanded from a person by the director under this section becomes payable as follows:

(a) if the person is indebted or liable to make a payment to the taxpayer at the time the demand is given, as soon as the demand is given to the person;

(b) in any other case, as soon as the person becomes indebted or liable to make a payment to the taxpayer.

(10) A person who fails to comply with a demand under subsection (2) or (5) is liable to pay to the government an amount equal to the amount that the person was required to pay under subsection (2) or (5).

(11) A person who fails to comply with a demand under subsection (3) is liable to pay to the government an amount equal to the lesser of

(a) the total of the money advanced or paid, and

(b) the amount that the person was required to pay under subsection (3).

(12) Money paid by any person to the government in compliance with a demand under this section

(a) satisfies the original liability to the extent of the payment, and

(b) is deemed to have been paid by that person to the taxpayer.

Lien

221   (1) In this section:

"amount owing" means an amount remaining unpaid or unremitted, any related penalty and any interest on that amount and the penalty;

"associated corporation" includes a corporation that is determined under subsection (12) to be associated with another corporation for the purposes of this section;

"collateral" has the same meaning as in the Personal Property Security Act;

"financing statement" has the same meaning as in the Personal Property Security Act;

"inventory" has the same meaning as in the Personal Property Security Act;

"personal property registry" means the registry under the Personal Property Security Act;

"proceeds" has the same meaning as in the Personal Property Security Act;

"property", when referring to the property of an associated corporation or a related individual, means property that is used in, or in conjunction with, the business in respect of which the amount referred to in subsection (2) is required to be levied and remitted;

"purchase money security interest" has the same meaning as in the Personal Property Security Act;

"security interest" has the same meaning as in the Personal Property Security Act.

(2) If a person is required to pay or remit an amount to the government under this Act and does not pay or remit the amount, the director may register a lien

(a) against the real property of

(i) the person,

(ii) an associated corporation of the person, or

(iii) a related individual of the person

by registering a certificate of lien in the prescribed form in the appropriate land title office in the same manner that a charge is registered under the Land Title Act, and

(b) against the personal property of

(i) the person,

(ii) an associated corporation of the person, or

(iii) a related individual of the person

by registering a financing statement in the personal property registry.

(3) On registration of a certificate of lien against the real property of a person under subsection (2) (a), a lien is created on the real property against which the lien is registered for the amount owing.

(4) On registration of a lien against the personal property of a person under subsection (2) (b), a lien is created on the present and after acquired personal property in which the person has a legal or equitable interest, including, in the case of a lien referred to in paragraph (a) or (b) of this subsection, any portion of the property that is subject to a prior lien or security interest, for the following:

(a) if the lien relates to taxes that were required to be levied and collected before registration, the amount of those taxes remaining uncollected and unremitted, any related penalty and any interest on that amount and the penalty;

(b) if the lien relates to taxes that were collected, or an amount collected as if it were tax, but not remitted before registration, the amount remaining unremitted, any related penalty and any interest on that amount remaining unremitted and the penalty;

(c) any amount, other than an amount referred to in paragraph (a) or (b), owing by the person under this Act.

(5) Subject to subsections (6) and (7), a lien, other than a lien referred to in subsection (4) (c), that is registered under subsection (2) (b) against personal property

(a) is not limited to the equity that the person against whose personal property the lien is registered has in the personal property, and

(b) despite the provisions of any other enactments, has priority over a security interest or other lien, whether or not the security interest or other lien existed before the lien was registered under subsection (2) (b).

(6) A lien registered under subsection (2) (b) against personal property does not have priority over

(a) a security interest that secures unpaid wages under section 87 (3) of the Employment Standards Act, regardless of when that security interest arises, or

(b) a purchase money security interest in collateral other than collateral that at the time the purchase money security interest attaches is inventory or its proceeds.

(7) If

(a) one or more liens are registered under subsection (2) (b) against the personal property of a person, and

(b) the property referred to in paragraph (a) of this subsection is subject to

(i) a security interest perfected under the Personal Property Security Act before the registration of the first lien under subsection (2) (b), or

(ii) another lien created before the registration of the first lien under subsection (2) (b),

the total amount secured by all the liens registered under subsection (2) (b), other than liens referred to in subsection (4) (c), is limited in amount, with respect to all the prior security interests or other liens referred to in paragraph (b) of this subsection, to the amount of taxes remaining uncollected or unremitted, or both, that were required to be collected or were collected by the person for the 6 months before the date of the most recent registration of a lien under subsection (2) (b), any related penalty and any interest on that amount and the penalty.

(8) In relation to a certificate of lien registered under subsection (2) (a) against the real property of a person, the director may register a certificate of lien in the form prescribed for the purposes of subsection (2) (a) in the appropriate land title office in the same manner that a charge is registered under the Land Title Act if

(a) the certificate of lien registered under subsection (2) (a) against the real property of the person contains a statement of the amount owing, and

(b) the director is satisfied that the amount referred to in paragraph (a) of this subsection that is stated in that certificate of lien is incorrect.

(8.1) In relation to a financing statement registered under subsection (2) (b) against the personal property of a person, the director may register a financing change statement, as defined in the Personal Property Security Act, in the personal property registry if

(a) the financing statement registered under subsection (2) (b) against the personal property of the person contains a statement of the amount owing, and

(b) the director is satisfied that the amount referred to in paragraph (a) of this subsection that is stated in that financing statement is incorrect.

(8.2) A certificate of lien registered under subsection (8) and a financing change statement registered under subsection (8.1) must contain a revised statement of the amount owing.

(9) On registration of a certificate of lien against the real property of a person under subsection (8), the certificate of lien registered under subsection (2) (a) against the real property of the person is, at the same time it was originally registered, deemed to be revised to set out the amount owing as stated in the certificate of lien registered under subsection (8).

(9.1) On registration of a financing change statement against the personal property of a person under subsection (8.1), the financing statement registered under subsection (2) (b) against the personal property of the person is, at the same time it was originally registered, deemed to be revised to set out the amount owing as stated in the financing change statement registered under subsection (8.1).

(10) Despite section 228 [confidentiality], the director must,

(a) on the oral or written request of a person, disclose in writing the amount of the lien under this section registered against the personal or real property of the person, or

(b) on the written request of a person accompanied by the written consent of a named person, disclose in writing the amount of the lien under this section registered against the personal or real property of the named person.

(11) If the director believes that one corporation is associated with another corporation within the meaning of section 256 of the Income Tax Act (Canada), the director may request one or both of the corporations to provide to the director the records and information required by the director to confirm or rebut that belief.

(12) The director may determine that corporations are associated corporations for the purposes of this section if

(a) a corporation that has been requested to provide records or information to the director under subsection (11) fails or refuses to comply with that request within a period of time considered by the director to be reasonable in the circumstances, or

(b) the records or information provided to the director under this section confirm the director's belief that the corporations are associated.

(13) Immediately after a corporation is determined under this section to be associated with a person referred to in subsection (2) (a) (i) and (b) (i), the director

(a) must notify the corporation of this in writing, and

(b) may register a lien under this section against the real and personal property of the corporation.

(14) The director may seize personal property against which a lien is registered under subsection (13) at any time after the registration of the lien, but must not take any action to realize on those assets until the later of

(a) the date that is 90 days after the date on which the notice required under subsection (13) (a) was given to the corporation, and

(b) if a notice of appeal is given to the minister in respect of the determination within the time provided by section 211 (3), the date on which the minister upholds the determination under that appeal.

(15) If, at any time, the director becomes convinced that the corporations were not associated within the meaning of section 256 of the Income Tax Act (Canada) at the time that the lien was registered under subsection (13) (b) of this section or if the minister or a court of competent jurisdiction upholds the corporation's appeal against the director's determination on the basis that the corporations were not associated at the time that the lien was registered, the director must,

(a) if the director has not realized on any of the assets against which the lien was registered, promptly release the lien, and

(b) if the director has realized on some or all of the assets against which the lien was registered, promptly release the lien against the remaining assets and pay the proceeds realized from the sale of the realized assets minus any costs or expenses incurred in the sale

(i) to the corporation, or

(ii) if the director considers it appropriate to do so, into the Supreme Court under Rule 10-3 of the Supreme Court Civil Rules.

(16) The release of the lien under subsection (15) (a) or the release of the lien and payment of the applicable net sale proceeds under subsection (15) (b) is deemed to be full satisfaction of all claims any person, including the corporation, might have arising out of or in any way connected with the determination made under subsection (12), the registration of the lien or the seizure or sale of any or all of the assets against which the lien was registered.

Responsibility of person having control of property

222   (1) In this section, "secured party" has the same meaning as in the Personal Property Security Act.

(2) This section applies to a person who, as assignee, liquidator, administrator, receiver, receiver manager, trustee, secured party or similar person, other than a trustee appointed under the Bankruptcy and Insolvency Act (Canada), takes control or possession of the property of a person who has collected tax or an amount as if it were tax or is required to levy or remit tax under this Act.

(3) Before distributing the proceeds from the realization of the property referred to in subsection (2), a person to whom this section applies must obtain from the director a certificate that the amount that constituted a lien under section 221 has been paid.

(4) If a person to whom this section applies distributes the proceeds from the realization of the property referred to in subsection (2), without having obtained the certificate required by subsection (3), the person is personally liable to the government for an amount equal to the amount required to be paid to obtain the certificate.

(5) An amount payable under subsection (4) in respect of a distribution of the proceeds from the realization of property must be paid on or before the last day of the month after the month in which the disposition occurred.

(6) Despite subsection (5), an amount payable under subsection (4) by a registrant must be paid on or before the prescribed date and in the prescribed manner.

Notice of enforcement proceedings

223   (1) Before taking proceedings for the recovery of an amount owing to the government under this Act, the director must give to the person who owes the amount notice of the director's intention to enforce payment.

(2) Failure to give notice under subsection (1) does not affect the validity of proceedings taken for the recovery of an amount owing to the government under this Act.

Limitation period

224   (1) In this section, "collection proceeding" means

(a) a proceeding for the recovery of an amount owing to the government under section 217,

(b) the filing of a certificate under section 218,

(c) the making of a demand under section 220, and

(d) the registration or enforcement of a lien under section 221.

(2) A collection proceeding may be commenced at any time within 7 years after the date of the notice of assessment for the amount claimed in the collection proceeding.

(3) Despite subsection (2), a collection proceeding that relates to a contravention of this Act or the regulations and that involves wilful default or fraud may be commenced at any time.

(4) If, before the expiry of the limitation period that applies under subsection (2) to an amount claimed, a person acknowledges liability in respect of the amount claimed, the date of the notice of assessment is deemed to be the day on which the acknowledgement is made.

(5) Subsection (4) does not apply to an acknowledgement, other than an acknowledgement referred to in subsection (6), unless the acknowledgement is

(a) in writing,

(b) signed, by hand or by electronic signature within the meaning of the Electronic Transactions Act,

(c) made by the person making the acknowledgement or the person's agent, and

(d) made to the government or an agent of the government.

(6) In the case of an amount claimed to which the limitation period under subsection (2) applies, for the purposes of subsection (4), part payment of the amount by the person against whom the claim is or may be made or by the person's agent is an acknowledgement by the person against whom the claim is or may be made of liability in respect of the claim.

(7) Section 24 (2), (4) and (10) of the Limitation Act applies for the purposes of this section.

(8) The liability of a person for the payment of an amount owing to the government under this Act is not affected by the expiry of the limitation period that applies under subsection (2) to the amount claimed.

Application for injunction

225   The director may apply to the Supreme Court for an injunction ordering a person to cease selling, offering to sell, providing or offering to provide tangible personal property, software or a taxable service or leasing or offering to lease tangible personal property until the person complies with this Act and the regulations and the person's obligations under this Act are fulfilled.

Part 12 — General

Designation of director

226   The minister may designate as director to administer this Act a person who is appointed under the Public Service Act.

Delegation

227   (1) The director may, in writing, delegate any of the director's powers or duties under this Act.

(2) A delegation under subsection (1) may be to a named person or to a class of persons.

Confidentiality

228   (1) 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 as follows:

(a) in the course of administering or enforcing this Act or the regulations, or another taxation enactment;

(b) in court proceedings relating to this Act or the regulations, or another taxation enactment;

(c) as provided in, or ordered under, section 239 or 242 of the Family Law Act or section 8.2 or 9 of the Family Maintenance Enforcement Act;

(d) under an agreement that

(i) is between the government and another government,

(ii) relates to the administration or enforcement of taxation enactments, and

(iii) provides for the disclosure of information and records to, and the exchange of similar information and records with, that other government;

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

(e) for the purpose of the compilation of statistical information by the government or the government of Canada.

(2) Despite subsection (1), the director may publish the names and addresses of registrants.

How and when documents are given by director

229   (1) Subject to this Act, if, under this Act, a document must or may be given by the director to a person, the document may be given in accordance with subsection (2).

(2) The director may give a document to a person as follows:

(a) if the person is an individual, by leaving the document with the individual;

(b) if the person is a corporation, by leaving the document with a board member, senior officer, liquidator or receiver manager of the corporation;

(c) if the person is an extraprovincial corporation, by leaving the document with

(i) a person referred to in paragraph (b), or

(ii) an attorney for the extraprovincial corporation;

(d) if the person is a partnership,

(i) by leaving the document with an individual who is a member of the partnership, or

(ii) in the case of a corporation or extraprovincial corporation that is a member of the partnership, by leaving the document with a person who is, in respect of that corporation or extraprovincial corporation, a person referred to in paragraph (b) or (c), as applicable;

(e) by leaving the document with a person apparently employed at the place of business of the person;

(f) by sending the document by ordinary mail or registered mail to the last known address of the person according to the records of the director;

(g) by sending the document by electronic mail to the last known electronic mail address of the person according to the records of the director;

(h) by sending the document by fax to the last known fax number of the person according to the records of the director;

(i) by sending or providing the document by another communication method agreed to by the person and the director.

(3) If a person carries on business under a name or style other than the person's own name, a document to be given in accordance with this Act may be addressed to the name or style under which the person carries on business.

(4) A document is conclusively deemed to have been given to a person by the director if the document

(a) is given in a manner referred to in subsection (2) (a) to (e) or (g) to (i), or

(b) is sent by registered mail to the last known address of the person according to the records of the director.

(5) A document is conclusively deemed to have been given to a person by the director

(a) on the date the document is sent, if the document is sent by registered mail, electronic mail or fax as contemplated by subsection (2) (f), (g) or (h), or

(b) on the date the document is sent or provided, if the document is sent or provided by another communication method as contemplated by subsection (2) (i).

(6) A document is deemed to have been given to a person by the director on the date the document is sent, if the document is sent by ordinary mail as contemplated by subsection (2) (f).

(7) For the purposes of this Act, the date of a notice or other document given by the director is, subject to section 224 (4), the date stated on the notice or other document.

Proof of compliance

229.01   In a prosecution or any proceeding for any matter arising under this Act, the facts necessary to establish compliance on the part of the director with section 229 may be sufficiently proved in any court by the production of an affidavit of the director setting out the facts.

Proof of receipt

229.02   (1) Proof of the receipt by a person of a document to which section 229 applies may be established in any court by showing that the document was given in accordance with that section.

(2) A person seeking to establish that a document referred to in subsection (1) was not received by the person bears the burden of establishing that fact.

How and when documents are given by minister

229.03   If, under this Act, a document must or may be given by the minister to a person, the document may be given in accordance with section 229 (2).

When documents are given to minister

229.04   If, under this Act, a document must or may be given to the minister, the document is conclusively deemed to have been given if delivered to the office of the deputy minister.

Estimates of revenue

229.1   Before each fiscal year of the government, the minister must estimate the following in writing:

(a) the amount, to be recognized as revenue of the government for the fiscal year, that is derived from tax imposed under section 43 [additional tax on lease of passenger vehicle];

(b) the amount, to be recognized as revenue of the government for the fiscal year, that is derived from the taxation under this Act of disposable diapers designed for babies and young children;

(c) the amount, to be recognized as revenue of the government for the fiscal year, that is derived from tax imposed under Division 11 [Energy Products] of Part 3.

Part 13 — Offences and Penalties

Offences and penalties

230   (1) A person who contravenes section 228 [confidentiality] commits an offence and is liable to a fine of not more than $2 000.

(2) A person who contravenes section 177 (1), (2) or (3) [prohibitions relating to use of registration number] or 194 (3) (a) or (7) [inspection and audit powers] commits an offence.

(3) A person who does any of the following commits an offence:

(a) makes, or participates in, assents to or acquiesces in the making of, a false or deceptive statement in a return, a declaration, an application for a refund or a form required to be made or filed under this Act;

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

(c) makes, or participates in, assents to or acquiesces in the making of, a false or deceptive entry in a record related to an amount to be paid or remitted to the government under this Act;

(d) omits, or participates in, assents to or acquiesces in the omission of, a material particular in a record required to be kept under this Act;

(e) wilfully, in any manner, or fraudulently claims, or participates in, assents to or acquiesces in the claiming of, an exemption by using a document or other record in a false or deceptive manner or by making a false or deceptive declaration;

(f) wilfully, in any manner, fails to comply with this Act or the regulations;

(g) wilfully, in any manner, evades or attempts to evade compliance with this Act or the regulations or payment or remittance of taxes required under this Act;

(h) conspires with any person to do anything described in paragraphs (a) to (g).

(4) A person who commits an offence under subsection (2) or (3) is liable

(a) to a fine of not more than $10 000 or to imprisonment for not more than 2 years, or to both, and

(b) to an additional fine equal to the amount of any tax not collected, remitted or paid or equal to the amount received as a refund of a tax under this Act that was in excess of the amount that was due, as applicable.

(5) In a prosecution under subsection (2) or (3), a certificate signed by the director stating the amount of tax or the amount of the refund referred to in subsection (4) (b) is evidence of the amount of tax or the amount of the refund referred to in that subsection.

(6) A penalty under this section is in addition to any other penalty under this Act.

Onus of proof

231   In a prosecution for failure to collect, remit or pay an amount under this Act, the onus is on the accused to prove that the accused collected the amount or remitted or paid the amount to the government.

Evidence

232   In a prosecution under this Act,

(a) evidence that a person applied to be registered under section 168 [registration] is evidence that the person is registered for the purposes of this Act,

(b) evidence that a person is described as a partnership on an application form submitted under section 168 [registration] is evidence that the persons named on the form as partners in the partnership are partners in the partnership,

(c) evidence that a person filed a collector's return is evidence that the person collected tax, and

(d) a notice of assessment given under this Act is evidence that the amount stated in the notice of assessment is due and owing.

Offence by corporation

233   If a corporation commits an offence under this Act, an employee, officer, board member or agent of the corporation who authorized, permitted or acquiesced in the offence also commits that offence, whether or not the corporation is prosecuted or convicted.

Time limit on prosecution

234   No prosecution for an offence under this Act or the regulations may be instituted more than 6 years after the day the alleged offence was committed.

Section 5 of Offence Act

235   Section 5 [general offence] of the Offence Act does not apply to this Act or the regulations.

Part 14 — Regulations

General regulation-making authority

236   (1) The Lieutenant Governor in Council may make regulations referred to in section 41 of the Interpretation Act.

(2) Without limiting subsection (1), the Lieutenant Governor in Council may make regulations respecting any matter for which regulations are contemplated by this Act.

(3) The authority to make regulations under another provision of this Act does not limit subsection (1) or (2).

(4) In making a regulation under this Act, the Lieutenant Governor in Council may do one or more of the following:

(a) delegate a matter to a person;

(b) confer a discretion on a person;

(c) make different regulations for different persons, tangible personal property, software, taxable services, places, things, circumstances, uses or transactions, or for different classes of persons, tangible personal property, software, taxable services, places, things, circumstances, uses or transactions;

(d) establish or define classes of persons, tangible personal property, software, taxable services, places, things, circumstances, uses or transactions.

(5) A regulation made on or before March 31, 2016 under this Act may be made retroactive to April 1, 2013 or a later date, and if made retroactive is deemed to have come into force on the specified date.

Regulations in relation to tax payment agreements

237   The Lieutenant Governor in Council may make regulations in relation to tax payment agreements under section 32 as follows:

(a) respecting the circumstances in which a person liable to pay tax must pay the tax to a collector or directly to the government in relation to

(i) a delivery in British Columbia, or a purchase or lease, of tangible personal property to which the agreement applies, or

(ii) a purchase of software or an eligible taxable service to which the agreement applies;

(b) setting or establishing conditions of an agreement;

(c) respecting the relief of a collector from the obligation to levy and collect tax in relation to a purchase or lease of tangible personal property or a purchase of software or an eligible taxable service to which an agreement applies;

(d) respecting the imposition of a penalty for a failure to comply with this Act, the regulations or a term or condition of an agreement.

Regulations in relation to tangible personal property

238   The Lieutenant Governor in Council may make regulations in relation to tangible personal property as follows:

(a) for the purposes of section 25 (2) (a), respecting the determination of the depreciated value of tangible personal property prescribed for the purposes of that section;

(b) respecting the calculation of the tax payable under section 51 [tax if tangible personal property brought into British Columbia for temporary use] in relation to tangible personal property to which section 51 (9) applies;

(c) for the purpose of calculating the tax payable under Division 6 [Conveyances Used Interjurisdictionally] of Part 3 by persons using fleets of interjurisdictional aircraft, interjurisdictional railway rolling stock or interjurisdictional conveyances, as those terms are defined in that Division, prescribing formulas

(i) that are based on the use of those fleets in British Columbia, and

(ii) that those persons may choose to use instead of the formulas applied under that Division;

(d) providing that tax calculated in accordance with a formula prescribed for a fleet be paid in a different manner or at different times from those provided in Division 6 of Part 3;

(d.1) for the purpose of the calculation of tax payable under section 69 (2) [tax if multijurisdictional vehicle licensed],

(i) requiring a person licensing a vehicle in British Columbia under a licence to which a prorating agreement applies to report to the Insurance Corporation of British Columbia the distance the vehicle travelled, in the calculation year immediately preceding the date the licence is issued, in British Columbia and in each other jurisdiction prescribed for the purposes of section 70 (2) [when tax under section 69 must be paid], and

(ii) prescribing a method for determining the travel ratio for a vehicle;

(e) [Repealed 2013-1-302.]

(e.1) for the purpose of calculating the tax payable under section 84.1 (2) to (5), respecting the calculation of tax payable under that section, which may include a calculation based on some or all of the inventory of the dealer or manufacturer;

(f) establishing reporting requirements for the purposes of section 97 [reporting requirements in relation to energy products].

Regulations in relation to software

239   The Lieutenant Governor in Council may make regulations prescribing a period for the purposes of the descriptions of "BC usage" and "total usage" in section 107 (2), which period may be different for BC usage and total usage.

Regulations in relation to accommodation

240   (1) The Lieutenant Governor in Council may make regulations in relation to accommodation as follows:

(a) for the purposes of section 19 (3) [original purchase price of accommodation], respecting the manner by which an amount may be attributed to accommodation that is sold as part of a combination of accommodation, meals and other services;

(a.1) for the purposes of section 26 (6) [purchase price if bundled purchase], respecting the manner by which an amount may be attributed to the purchase of the accommodation to which that section applies as the purchase price of the accommodation;

(b) designating as a designated accommodation area

(i) the area of a municipality,

(ii) all or part of the area of a regional district, or

(iii) an area of British Columbia;

(c) for the purposes of sections 123 (1), 123.2 (3) and 123.3 (3), designating, in relation to a designated accommodation area, a municipality, regional district or eligible entity as a designated recipient;

(d) for the purposes of section 123 (1) and subject to section 123 (2), prescribing the rate of tax that is to apply to accommodation purchased in a designated accommodation area;

(e) for the purpose of section 125 (2) (a), prescribing the purposes for which the amount paid to the designated recipient out of the revenue collected from the tax may be spent by the designated recipient;

(f) [Repealed 2022-11-101.]

(g) exempting purchasers from the obligation to pay tax under section 123 (1) if the purchaser purchases accommodation

(i) in a prescribed designated accommodation area, and

(ii) through an online marketplace facilitator that is registered under section 168 at the time of purchase.

(2) The Lieutenant Governor in Council may not make a regulation under subsection (1) (b), (c), (d) or (e) unless the regulation is requested by the municipality, regional district or eligible entity.

(3) The Lieutenant Governor in Council may make regulations establishing conditions or requirements in relation to a request referred to in subsection (2).

(4) Subject to subsection (4.1), the Lieutenant Governor in Council may amend, repeal or replace a regulation made under subsection (1) (b), (c), (d) or (e) whether or not the amendment, repeal or replacement is requested by the municipality, regional district or eligible entity that requested the regulation.

(4.1) The Lieutenant Governor in Council may not amend the rate of tax prescribed in relation to accommodation purchased in a designated accommodation area unless the amendment is requested by the designated recipient.

(5) The Lieutenant Governor in Council may not make a regulation under subsection (1) (c) designating more than one municipality, regional district or eligible entity in relation to a designated accommodation area.

Regulations in relation to online marketplace services