Reduced tax for smaller corporations that are not associated with other corporations

3.1  (1)  For a corporation that

(a) is referred to in section 3 (2) (b),

(b) is not one of 2 or more associated corporations, and

(c) has, at the end of the applicable taxation year, net B.C. paid up capital that is less than the total of the threshold amount plus $250 000,

in the circumstances described in this section, the tax imposed on and payable under this Act by the corporation for that taxation year is the amount determined under this section rather than the amount of tax that would otherwise be payable by the corporation under section 3.

(2)  If, at the end of a taxation year, the corporation has net B.C. paid up capital that is

(a) equal to or greater than the threshold amount, and

(b) less than the total of the threshold amount plus $250 000,

the amount of tax imposed on and payable by the corporation for the taxation year is to be determined in accordance with the following formula:

(3)  If, at the end of a taxation year, the corporation has net B.C. paid up capital that is

(a) equal to or greater than $1.5 million, and

(b) less than the threshold amount,

the amount of tax imposed on and payable by the corporation for the taxation year is to be determined in accordance with the following formula:

(4)  If, at the end of a taxation year, the corporation has net B.C. paid up capital that is

(a) equal to or greater than $250 000, and

(b) less than $1.5 million,

the amount of tax imposed on and payable by the corporation for the taxation year is $500.

(5)  If, at the end of a taxation year, the corporation has net B.C. paid up capital that is less than $250 000, the amount of tax imposed on and payable by the corporation for the taxation year is the lesser of

(a) the amount of tax that would be payable under section 3 for the taxation year by the corporation, if this section did not apply, and

(b) $250.

 Reduced tax for smaller corporations that are not associated with other corporations

3.1  (1)  For a corporation that

(a) is referred to in section 3 (2) (b),

(b) is not one of 2 or more associated corporations, and

(c) has, at the end of the applicable taxation year, B.C. paid up capital that is less than the total of the threshold amount plus $250 000,

in the circumstances described in this section, the tax imposed on and payable under this Act by the corporation for that taxation year is the amount determined under this section rather than the amount of tax that would otherwise be payable by the corporation under section 3.

(2)  If, at the end of a taxation year, the corporation has B.C. paid up capital that is

(a) equal to or greater than the threshold amount, and

(b) less than the total of the threshold amount plus $250 000,

the amount of tax imposed on and payable by the corporation for the taxation year is to be determined in accordance with the following formula:

(3)  If, at the end of a taxation year, the corporation has B.C. paid up capital that is

(a) equal to or greater than $1.5 million, and

(b) less than the threshold amount,

the amount of tax imposed on and payable by the corporation for the taxation year is to be determined in accordance with the following formula:

 Reduced tax for smaller corporations that are associated with one or more other corporations

3.2  (1)  For a corporation that

(a) is referred to in section 3 (2) (b),

(b) is one of 2 or more associated corporations, and

(c) has, at the end of the applicable taxation year, B.C. paid up capital that, when added to the B.C. paid up capital of every corporation with which it is associated, is in total not more than the total of the threshold amount plus $250 000,

in the circumstances described in this section, the tax imposed on and payable under this Act by the corporation for that taxation year is the amount determined under this section rather than the amount of tax that would otherwise be payable by the corporation under section 3.

 Reduced tax for smaller corporations that are associated with one or more other corporations

3.2  (1)  For a corporation that

(a) is referred to in section 3 (2) (b),

(b) is one of 2 or more associated corporations, and

(c) has, at the end of the applicable taxation year, net B.C. paid up capital that, when added to the net B.C. paid up capital of every corporation with which it is associated, is in total not more than the total of the threshold amount plus $250 000,

in the circumstances described in this section, the tax imposed on and payable under this Act by the corporation for that taxation year is the amount determined under this section rather than the amount of tax that would otherwise be payable by the corporation under section 3.

(2)  If, at the end of a taxation year, the corporation has net B.C. paid up capital that, when added to the net B.C. paid up capital of every corporation with which it is associated, is in total

(a) equal to or greater than the threshold amount, and

(b) less than the total of the threshold amount plus $250 000,

the amount of tax imposed on and payable by the corporation for the taxation year is its proportionate share of the amount determined in accordance with the following formula:

(3)  If, at the end of a taxation year, the corporation has net B.C. paid up capital that, when added to the net B.C. paid up capital of every corporation with which it is associated, is in total

(a) equal to or greater than $1.5 million, and

(b) less than the threshold amount,

the amount of tax imposed on and payable by the corporation for the taxation year is its proportionate share of the amount determined in accordance with the following formula:

(4)  If, at the end of a taxation year, the corporation has net B.C. paid up capital that, when added to the net B.C. paid up capital of every corporation with which it is associated, is in total

(a) equal to or greater than $250 000, and

(b) less than $1.5 million,

the amount of tax imposed on and payable by the corporation for the taxation year is its proportionate share of $500.

(5)  If, at the end of a taxation year, the corporation has net B.C. paid up capital that, when added to the net B.C. paid up capital of every corporation with which it is associated, is in total less than $250 000, the amount of tax imposed on and payable by the corporation for the taxation year is its proportionate share of the lesser of

(a) the total amount of tax that would be payable under section 3 for the taxation year by the corporation and every corporation with which it is associated, if this section did not apply, and

(b) $250.

(6)  For the purposes of this section, the proportionate share of an amount that is payable by a corporation under this section is the proportion that

(a) its net B.C. paid up capital

bears to

(b) the total of the net B.C. paid up capital of the corporation and every corporation with which it is associated that has a positive net B.C. paid up capital.

(7)  For the purpose of determining the tax payable by a corporation under this section, the amounts of net B.C. paid up capital of the associated corporations and the amounts of tax otherwise payable under section 3 that are to be added together for the purposes of this section must be computed by using the taxation year for each associated corporation that ends in the same calendar year as the taxation year of the corporation for which the tax payable is being determined.

 Reduced tax for smaller, non-financial corporations not associated with other corporations

3.3  (1)  For a corporation that

(a) is referred to in section 3 (3),

(b) is not one of 2 or more associated corporations, and

(c) has, at the end of the applicable taxation year, net B.C. paid up capital that is less than the total of the threshold amount plus $250 000,

in the circumstances described in this section, the tax imposed on and payable under this Act by the corporation for that taxation year is the amount determined under this section rather than the amount of tax that would otherwise be payable by the corporation under section 3.

(2)  If, at the end of a taxation year, the corporation has net B.C. paid up capital that is

(a) equal to or greater than the threshold amount, and

(b) less than the total of the threshold amount plus $250 000,

the amount of tax imposed on and payable by the corporation for the taxation year is to be determined in accordance with the following formula:

(3)  If, at the end of a taxation year, the corporation has net B.C. paid up capital that is

(a) equal to or greater than $1.5 million, and

(b) less than the threshold amount,

the amount of tax imposed on and payable by the corporation for the taxation year is to be determined in accordance with the following formula:

(4)  If, at the end of a taxation year, the corporation has net B.C. paid up capital that is

(a) equal to or greater than $250 000, and

(b) less than $1.5 million,

the amount of tax imposed on and payable by the corporation for the taxation year is the sum of

(c) the proportion of $500 that the number of days in the taxation year occurring before September 1, 2001 bears to the total number of days in the taxation year, and

(d) the proportion of $250 that the number of days in the taxation year occurring after August 31, 2001 and before September 1, 2002 bears to the total number of days in the taxation year.

(5)  If, at the end of a taxation year, the corporation has net B.C. paid up capital that is less than $250 000, the amount of tax imposed on and payable by the corporation for the taxation year is the lesser of

(a) the amount of tax that would be payable under section 3 for the taxation year by the corporation, if this section did not apply, and

(b) the sum of

(i)  the proportion of $250 that the number of days in the taxation year occurring before September 1, 2001 bears to the total number of days in the taxation year, and

(ii)  the proportion of $125 that the number of days in the taxation year occurring after August 31, 2001 and before September 1, 2002 bears to the total number of days in the taxation year.

 Reduced tax for smaller, non-financial corporations associated with other corporations

3.4  (1)  For a corporation that

(a) is referred to in section 3 (3),

(b) is one of 2 or more associated corporations, and

(c) has, at the end of the applicable taxation year, net B.C. paid up capital that, when added to the net B.C. paid up capital of every corporation with which it is associated, is in total not more than the total of the threshold amount plus $250 000,

in the circumstances described in this section, the tax imposed on and payable under this Act by the corporation for that taxation year is the amount determined under this section rather than the amount of tax that would otherwise be payable by the corporation under section 3.

(2)  If, at the end of a taxation year, the corporation has net B.C. paid up capital that, when added to the net B.C. paid up capital of every corporation with which it is associated, is in total

(a) equal to or greater than the threshold amount, and

(b) less than the total of the threshold amount plus $250 000,

the amount of tax imposed on and payable by the corporation for the taxation year is its proportionate share of the amount determined in accordance with the following formula:

(3)  If, at the end of a taxation year, the corporation has net B.C. paid up capital that, when added to the net B.C. paid up capital of every corporation with which it is associated, is in total

(a) equal to or greater than $1.5 million, and

(b) less than the threshold amount,

the amount of tax imposed on and payable by the corporation for the taxation year is its proportionate share of the amount determined in accordance with the following formula:

(4)  If, at the end of a taxation year, the corporation has net B.C. paid up capital that, when added to the net B.C. paid up capital of every corporation with which it is associated, is in total

(a) equal to or greater than $250 000, and

(b) less than $1.5 million,

the amount of tax imposed on and payable by the corporation for the taxation year is its proportionate share of the sum of

(c) the proportion of $500 that the number of days in the taxation year occurring before September 1, 2001 bears to the total number of days in the taxation year, and

(d) the proportion of $250 that the number of days in the taxation year occurring after August 31, 2001 and before September 1, 2002 bears to the total number of days in the taxation year.

(5)  If, at the end of a taxation year, the corporation has net B.C. paid up capital that, when added to the net B.C. paid up capital of every corporation with which it is associated, is in total less than $250 000, the amount of tax imposed on and payable by the corporation for the taxation year is its proportionate share of the lesser of

(a) the total amount of tax that would be payable under section 3 for the taxation year by the corporation and every corporation with which it is associated, if this section did not apply, and

(b) the sum of

(i)  the proportion of $250 that the number of days in the taxation year occurring before September 1, 2001 bears to the total number of days in the taxation year, and

(ii)  the proportion of $125 that the number of days in the taxation year occurring after August 31, 2001 and before September 1, 2002 bears to the total number of days in the taxation year.

(6)  For the purposes of this section, the proportionate share of an amount that is payable by a corporation under this section is the proportion that

(a) its net B.C. paid up capital

bears to

(b) the total of the net B.C. paid up capital of the corporation and every corporation with which it is associated that has a positive net B.C. paid up capital.

(7)  For the purpose of determining the tax payable by a corporation under this section, the amounts of net B.C. paid up capital of the associated corporations and the amounts of tax otherwise payable under section 3 that are to be added together for the purposes of this section must be computed by using the taxation year for each associated corporation that ends in the same calendar year as the taxation year of the corporation for which the tax payable is being determined.

 Negative amounts

3.5  If an amount calculated in accordance with section 3.3 (2) or 3.4 (2) would, but for this section, be a negative amount, the amount is deemed to be nil.

5  (1)  If a corporation has a taxation year of more or less than 365 days, the tax payable under this Act by the corporation for that taxation year is equal to that proportion of the tax otherwise payable under this Act for the taxation year that the number of days in the taxation year bears to 365 or, in a leap year, 366.

(2)  If a corporation ceases to have a permanent establishment in British Columbia during a taxation year, the taxation year is deemed to consist of the number of days in the year during which the corporation had a permanent establishment in British Columbia, and subsection (1) applies to that taxation year.

(3)  If a corporation begins having a permanent establishment in British Columbia during a taxation year, the taxation year is deemed to consist of the number of days in the year during which the corporation had a permanent establishment in British Columbia, and subsection (1) applies to that taxation year.

(4)  If a corporation has a taxation year part of which is before April 1, 1992 and part of which is after March 31, 1992, the tax payable under this Act is equal to that proportion of the tax otherwise payable under this Act that the number of days in the taxation year after March 31, 1992 bears to the number of days in the taxation year.

(5)  Subsections (2) and (3) do not apply to a corporation that is eligible for a deduction under section 12.

6  (1)  [Repealed 1997-6-5.]

(2)  The taxation year of a corporation for the purposes of this Act is the same as its taxation year, or deemed taxation year, under the Income Tax Act (Canada).

(2.1)  The taxation year of a partnership is the same as its fiscal period under the Income Tax Act (Canada).

(3)  If a corporation's taxation year, or deemed taxation year, under the Income Tax Act (Canada) changes, or is deemed to change or to have changed, in any way because of the operation of that Act, then the corporation's taxation year for the purposes of this Act is deemed to change, or to have changed, at the same time, in the same manner and to the same extent.

(4)  If a corporation changes its taxation year, the corporation must advise the administrator of the new taxation year within 30 days after the change.

7  (1)  The aggregate paid up capital of a bank, trust company or a credit union means the aggregate of the amounts, computed at the end of its taxation year, of its

8  The aggregate paid up capital of a corporation that is registered or licensed under the laws of a province to trade in securities means the aggregate of the amounts, computed at the end of its taxation year, of its

(a) capital stock,

(b) retained earnings, contributed surplus and any other surpluses,

(c) deferred credit,

(d) subordinate indebtedness, and

(e) proportionate share, as computed under section 16 (2), of the partnership amounts referred to in section 16 (1) (a) and (c), if any, that are applicable to each of the partnerships in which the corporation has an interest.

(2)  For the purposes of subsection (1), a corporation that is not a bank, a trust company or a credit union and is registered or licensed under the laws of a province to trade in securities if the corporation is

(a) registered as a dealer under the Securities Rules, B.C. Reg. 194/97, unless that corporation is registered only as a security issuer, or

(b) registered or licensed under the laws of a province other than British Columbia to trade in securities unless the corporation's registration or licence is equivalent to registration only as a security issuer.

 Aggregate paid up capital — investment dealers

8  (1)  The aggregate paid up capital of a corporation that is not a bank, a trust company or a credit union and that is registered or licensed under the laws of a province to trade in securities means the aggregate of the amounts, computed at the end of its taxation year, of its

(a) capital stock,

(b) retained earnings, contributed surplus and any other surpluses,

(c) deferred credit,

(d) subordinate indebtedness, and

(e) proportionate share, as computed under section 16 (2), of the partnership amounts referred to in section 16 (1) (a) and (c), if any, that are applicable to each of the partnerships in which the corporation has an interest.

(2)  For the purposes of subsection (1), a corporation that is not a bank, a trust company or a credit union and is registered or licensed under the laws of a province to trade in securities if the corporation is

(a) registered as a dealer under the Securities Rules, B.C. Reg. 194/97, unless that corporation is registered only as a security issuer, or

(b) registered or licensed under the laws of a province other than British Columbia to trade in securities unless the corporation's registration or licence is equivalent to registration only as a security issuer.

 Aggregate paid up capital — other corporations

9  The aggregate paid up capital of a corporation that is not a bank, a trust company, a credit union or a corporation described in section 8 or 14 (2), means the aggregate of the amounts, computed at the end of its taxation year, of its

(a) capital stock,

(b) retained earnings, contributed surplus and any other surpluses,

(c) liabilities, whether secured or unsecured, including any deferred credit but excluding current accounts payable, and

(d) proportionate share, as computed under section 16 (2), of the partnership amounts referred to in section 16 (1) (b) and (c), if any, that are applicable to each of the partnerships in which the corporation has an interest.

 Total paid up capital

10  There may be deducted from the aggregate paid up capital of a corporation to which section 14 (2) does not apply, at the end of its taxation year,

(a) in the case of a corporation other than a corporation referred to in section 7.1, the corporation's negative retained earnings, if any,

(b) in the case of a corporation other than a corporation referred to in section 7 or 7.1, the corporation's deferred tax debit, if any, to the extent that the deferred tax debit is recorded in its financial statements,

(c) in the case of a corporation that is solely engaged in exploration for a mineral resource, petroleum or natural gas, the amount, if any, by which the aggregate of the exploration costs incurred by the corporation that are

(i)  included in the cost of capital assets disclosed on the corporation's balance sheet at the end of that taxation year, and

(ii)  not deducted under section 13 at the end of that taxation year,

exceeds the aggregate of the amounts of amortization, depreciation and other charges taken into account in computing the corporation's income or loss for the taxation year or any preceding taxation year in accordance with generally accepted accounting principles in respect of those exploration costs, and

(d) the aggregate of all amounts, each of which is the corporation's proportionate share, as computed under section 16 (2), of the exploration costs incurred by a partnership in which the corporation has an interest that would be deductible under paragraph (c) of this section if the partnership were a corporation.

10  At the end of a financial corporation's taxation year, the financial corporation's negative retained earnings, if any, may be deducted from its aggregate paid up capital.

 Net paid up capital

11  (1)  In this section, "total assets", in relation to a corporation, means the aggregate of the carrying values of the corporation's assets on its balance sheet at the end of its taxation year and includes

(a) the amount by which the carrying value of an asset has been reduced by a liability or deferred credit, and

(b) if the corporation has an interest in a partnership, the proportionate share, as computed under section 16 (2), of the aggregate of the carrying values of the partnership assets on the partnership's balance sheet,

but does not include

(c) the carrying value of the corporation's investment in any partnership referred to in paragraph (b) if, for that taxation year, the corporation included within "total assets" for the purposes of this section, the proportionate share, as computed under section 16 (2), of the aggregate of the carrying values of the partnership assets on the partnership's balance sheet.

(2)  There may be deducted from the total paid up capital of a corporation that is not a bank, a trust company, a credit union or a corporation described in section 8 or 14 (2), at the end of the corporation's taxation year, an investment allowance equal to the proportion of the total paid up capital that the carrying value of the following investments bears to the total assets of the corporation:

(a) the corporation's investments in shares of other corporations;

(b) the corporation's net investments, as lessor, in capital leases to other corporations other than savings institutions;

(c) loans and advances to corporations;

(d) dividends receivable from corporations other than savings institutions;

(e) subject to subsection (4), the amount that represents the carrying value of the corporation's investment, if any, in a ship or aircraft;

(f) to the extent that these are not otherwise deducted under this Act,

(i)  the interest held by the corporation as a beneficiary of a qualifying environmental trust within the meaning of section 248 (1) of the Income Tax Act (Canada), and

(ii)  any security posted by the corporation under section 10 of the Mines Act that is not deducted under subparagraph (i);

(f.1) the corporation's loans and advances to partnerships in which the corporation does not have an interest, but only if

(i)  all the members of the partnership, throughout the corporation's taxation year, are corporations, and

(ii)  the loans and advances would qualify under paragraph (c) if made to each member of the partnership;

(g) the aggregate of all amounts, each of which is the corporation's proportionate share, as computed under section 16 (2), of the carrying value of investments of a partnership in which the corporation has an interest that would be investments of a corporation under paragraphs (a) to (f) of this subsection if that partnership were a corporation.

(3)  If a credit union owns shares of another savings institution that has a permanent establishment in British Columbia, other than a savings institution referred to in section 4 (3), there may be deducted from the total paid up capital of the credit union an investment allowance equal to the proportion of the total paid up capital that the carrying value of those shares in the other savings institution bears to the total assets of the credit union.

(4)  An investment referred to in subsection (2) (e) must not be deducted under subsection (2) unless the income for the taxation year earned from the operation of the ship or aircraft is exempt under section 81 (1) (c) of the Income Tax Act (Canada).

(5)  Despite any other provision of this section, the investment allowance to which a corporation may be entitled under subsection (2) or (3) must not be greater than the aggregate carrying value of the investments referred to in this section that are made by the corporation.

11  (1)  In this section, "total assets", in relation to a financial corporation, means the aggregate of the carrying values of the financial corporation's assets on its balance sheet at the end of its taxation year and includes the amounts by which the carrying values of its assets have been reduced by liabilities or deferred credits.

(2)  If a financial corporation owns shares of another financial corporation that has a permanent establishment in British Columbia, other than a financial corporation referred to in section 4 (3), there may be deducted from the total paid up capital of the financial corporation an investment allowance equal to the proportion of the total paid up capital that the carrying value of those shares in the other financial corporation bears to the total assets of the financial corporation.

(3)  The investment allowance to which a financial corporation may be entitled under subsection (2) must not be greater than the aggregate of the carrying values of the investments referred to in this section that are made by the financial corporation.

 Net paid up capital

11  (1)  In this section, "total assets" means

(a) in relation to a financial corporation other than an authorized foreign bank, the aggregate of the carrying values of the financial corporations assets on its balance sheet at the end of its taxation year and includes the amounts by which the carrying values of its assets have been reduced by liabilities or deferred credits, and

(b) in relation to an authorized foreign bank, the aggregate of the carrying values of the authorized foreign banks assets on its balance sheet at the end of its taxation year that are used or held in the course of its Canadian banking business before the application of risk weights under the OSFI risk-weighting guidelines.

(2)  If a financial corporation, other than an authorized foreign bank, owns shares of another financial corporation that has a permanent establishment in British Columbia, other than a financial corporation referred to in section 4 (3), there may be deducted from the total paid up capital of the financial corporation an investment allowance equal to the proportion of the total paid up capital that the carrying value of those shares in the other financial corporation bears to the total assets of the financial corporation.

(2.1)  If, in the course of carrying on its Canadian banking business, an authorized foreign bank owns shares of another financial corporation that has a permanent establishment in British Columbia, other than a financial corporation referred to in section 4 (3), there may be deducted from the total paid up capital of the authorized foreign bank an investment allowance equal to the proportion of the total paid up capital that the carrying values of those shares in the other financial corporation bear to the total assets of the authorized foreign bank.

(3)  The investment allowance to which a financial corporation may be entitled under subsection (2) or (2.1) must not be greater than the aggregate of the carrying values of the investments referred to in this section that are made by the financial corporation.

(4)  For the purposes of applying subsection (2.1) to an authorized foreign bank, the carrying values of the shares referred to in that subsection are the total value of those shares used or held in the course of its Canadian banking business at the end of its taxation year before the application of risk weights under the OSFI risk-weighting guidelines.

 B.C. paid up capital

12  (1)  At the end of a taxation year of a corporation to which section 14 (2) does not apply, there may be deducted from the net paid up capital of the corporation, that portion of the net paid up capital that is allocated to jurisdictions outside British Columbia in accordance with prescribed rules.

(2)  If a corporation is, at the end of an applicable taxation year, a nonresident corporation to which section 14 (2) applies, there may be deducted from the net paid up capital employed in Canada of the corporation, at the end of that taxation year, that portion of the net paid up capital employed in Canada that is allocated to Canadian jurisdictions other than British Columbia in accordance with prescribed rules.

 B.C. paid up capital

12  At the end of a taxation year of a financial corporation, there may be deducted from the net paid up capital of the corporation, that portion of the net paid up capital that is allocated to jurisdictions outside British Columbia in accordance with prescribed rules.

 B.C. paid up capital

12  (1)  At the end of a taxation year of a corporation, other than an authorized foreign bank, to which section 14 (2) does not apply, there may be deducted from the net paid up capital of the corporation that portion of the net paid up capital that is allocated to jurisdictions outside British Columbia in accordance with prescribed rules.

(2)  If a corporation is, at the end of an applicable taxation year, a nonresident corporation to which section 14 (2) applies, there may be deducted from the net paid up capital employed in Canada of the corporation, at the end of that taxation year, that portion of the net paid up capital employed in Canada that is allocated to Canadian jurisdictions other than British Columbia in accordance with prescribed rules.

(3)  At the end of a taxation year of an authorized foreign bank, there may be deducted from the net paid up capital of the corporation that portion of the net paid up capital that is allocated to Canadian jurisdictions other than British Columbia in accordance with prescribed rules.

 Net B.C. paid up capital

13  (1)  In this section:

"acquire" includes obtain, as lessee, under a capital lease;

"B.C. exploration and development expenditure", with respect to a corporation for a taxation year, means an expenditure that is

(a) made by the corporation in the taxation year with respect to the exploration for, or development of, oil, gas or mining properties located in British Columbia,

(b) not incurred to purchase, lease or acquire property, and

(c) included in the cost of capital assets disclosed on the corporation's balance sheet at the end of the taxation year;

"B.C. research expenditure", with respect to a corporation for a taxation year, means an expenditure

(a) made by the corporation in the taxation year in respect of research and development activities carried on in British Columbia, and

(b) included in deferred development costs disclosed on the corporation's balance sheet at the end of the taxation year;

"eligible expenditure", with respect to a corporation for a taxation year, means

(a) a B.C. exploration and development expenditure of the corporation for the taxation year,

(b) a B.C. research expenditure of the corporation for the taxation year, and

(c) the cost of eligible property and eligible tourism property incurred by the corporation in the taxation year;

"eligible property" means property acquired by a corporation, if the property

(a) is a building, a portion of a building, machinery or equipment, including any air and water pollution abatement equipment and structures,

(b) was acquired by the corporation after March 31, 1992,

(c) had not been used for any purpose whatever before

(i)  it was acquired by the corporation, or

(ii)  it was leased by the corporation, as lessor, under an operating lease,

(d) is, from the date of its acquisition to and including the end of the taxation year in respect of which the corporation claims a deduction under this section, owned by the corporation,

(e) is, in the taxation year in which it is acquired or in a subsequent taxation year, used primarily for one or more of the purposes referred to in subsection (2) (a) to (k) in British Columbia

(i)  by the corporation, or

(ii)  if the corporation leases the property, as lessor, under an operating lease, by the lessee under that lease, and

(f) is not, from its acquisition to and including the end of the taxation year in respect of which the corporation claims a deduction under this section, used primarily for any purpose other than a purpose, in British Columbia, referred to in subsection (2) (a) to (k),

but does not include eligible tourism property;

"eligible tourism property" means property acquired by a corporation, if the property

(a) is

(i)  a building, a structure, a portion of a building or structure, machinery or equipment acquired by the corporation after March 31, 1992, or

(ii)  changes to land constructed by the corporation after March 31, 1992,

(b) had not been used for any purpose whatever before

(i)  it was acquired by the corporation, or

(ii)  it was leased by the corporation, as lessor, under an operating lease,

(c) is, from the date of its acquisition to and including the end of the taxation year in respect of which the corporation claims a deduction under this section, owned by the corporation,

(d) is, in the taxation year in which it is acquired or in a subsequent taxation year, used primarily in prescribed tourism activities in British Columbia

(i)  by the corporation, or

(ii)  if the corporation leases the property, as lessor, under an operating lease, by the lessee under that lease, and

(e) is not, from its acquisition to and including the end of the taxation year in respect of which the corporation claims a deduction under this section, used primarily for any purpose other than a prescribed tourism activity in British Columbia.

(2)  Eligible property must be used for the purpose of

(a) manufacturing or processing goods for sale or lease,

(b) exploring or drilling for petroleum or natural gas,

(c) operating a petroleum or natural gas well, extracting petroleum or natural gas from a natural accumulation of petroleum or natural gas or processing heavy crude oil recovered from a natural reservoir in British Columbia to a stage that is not beyond the crude oil stage or its equivalent,

(d) prospecting or exploring for or developing a mineral resource,

(e) extracting minerals from a mineral resource,

(f) logging activities other than road building or transporting logs or logging equipment,

(g) processing ore from a mineral resource to a stage that is not beyond the prime metal stage or its equivalent,

(h) farming or fishing,

(i) storing grain,

(j) extracting and producing industrial minerals, or

(k) producing or processing steam or all-electrical energy for sale.

(3)  Subject to subsection (4), there may be deducted from the B.C. paid up capital of a corporation that is not a bank, trust company or credit union, at the end of its taxation year, the aggregate of

(a) the amount, if any, by which the aggregate of the eligible expenditures of the corporation for the taxation year exceeds the aggregate of the amounts of amortization, depreciation and other charges taken into account in computing the corporation's income or loss for the taxation year in accordance with generally accepted accounting principles in respect of those eligible expenditures,

(b) the amount, if any, by which the aggregate of the eligible expenditures of the corporation for the immediately preceding taxation year exceeds the aggregate of

(i)  the eligible expenditures of the corporation for the immediately preceding taxation year with respect to property that does not qualify as eligible property or eligible tourism property of the corporation at the end of the taxation year, and

(ii)  the amounts of amortization, depreciation and other charges taken into account in computing the corporation's income or loss for the taxation year and the immediately preceding taxation year in accordance with generally accepted accounting principles in respect of the eligible expenditures referred to in this paragraph,

(b.1) the amount, if any, by which the aggregate of the eligible expenditures of the corporation incurred after March 31, 1999 for the second preceding taxation year exceeds the aggregate of

(i)  the eligible expenditures of the corporation for the second preceding taxation year with respect to property that does not qualify as eligible property or eligible tourism property of the corporation at the end of the taxation year, and

(ii)  the amounts of amortization, depreciation and other charges taken into account in computing the corporation's income or loss for the taxation year and the 2 immediately preceding taxation years in accordance with generally accepted accounting principles in respect of the eligible expenditures referred to in this paragraph,

(b.2) the amount, if any, by which the aggregate of the eligible expenditures of the corporation incurred after March 31, 1999 for the third preceding taxation year exceeds the aggregate of

(i)  the eligible expenditures of the corporation for the third preceding taxation year with respect to property that does not qualify as eligible property or eligible tourism property of the corporation at the end of the taxation year, and

(ii)  the amounts of amortization, depreciation and other charges taken into account in computing the corporation's income or loss for the taxation year and the 3 immediately preceding taxation years in accordance with generally accepted accounting principles in respect of the eligible expenditures referred to in this paragraph, and

(c) all amounts, each of which is the corporation's proportionate share, as computed under section 16 (2) of the amounts that would be deductible under paragraphs (a) to (b.2) by a partnership in which the corporation has an interest if the partnership were a corporation.

(4)  A corporation must not take a deduction with respect to an eligible expenditure under this section in a taxation year if

(a) a deduction, under this section or section 10, with respect to the eligible expenditure has already been taken in the taxation year,

(b) a deduction with respect to the eligible expenditure has been or will be taken by another corporation in any taxation year,

(c) the eligible expenditure was made to acquire eligible property or eligible tourism property, which eligible property or eligible tourism property has been leased by way of an operating lease on more than one occasion, or

(d) the corporation has not filed with the administrator a schedule in the prescribed form.

 Calculation of net paid up capital employed in Canada for nonresident corporations

14  (1)  In this section:

"Canadian assets" means, in respect of a corporation that is a nonresident at the end of an applicable taxation year,

(a) assets of the corporation that are used or held by the corporation during that taxation year, for or in relation to any business carried on by the corporation through a permanent establishment in Canada during that taxation year, and

(b) the corporation's proportionate share, as computed under section 16 (2), of the assets of any partnership in which the corporation has an interest that are used or held by the partnership for or in relation to any business carried on by it through a permanent establishment in Canada in the taxation year of the partnership;

"corporation's current accounts payable" includes, for a corporation that has an interest in a partnership, the corporation's proportionate share, as computed under section 16 (2), of the current accounts payable of the partnership as at the end of the taxation year of the partnership.

(2)  Unless subsection (3) applies, the net paid up capital employed in Canada of a corporation that is a nonresident at the end of the applicable taxation year and that carried on business through a permanent establishment in Canada in that taxation year is the greater of

(a) the product obtained by multiplying the corporation's taxable income earned in Canada in the taxation year, as determined under the Income Tax Act (Canada), by 12.5, and

(b) the amount, if any, by which the aggregate of the carrying values of the corporation's Canadian assets, as at the end of the applicable taxation year, exceeds the aggregate of

(i)  the amount of the corporation's current accounts payable at the end of the applicable taxation year that may reasonably be regarded as relating to any business carried on by the corporation through a permanent establishment in Canada during the applicable taxation year, and

(ii)  the deductions that the corporation would have been permitted to take under sections 10 (c) and 11 if

(A)  the corporation were resident in Canada, and

(B)  the only assets of the corporation were those of its Canadian assets that pertain exclusively to its permanent establishments in Canada.

(3)  A corporation's net paid up capital employed in Canada for an applicable taxation year must be computed in accordance with sections 7 to 11 if

(a) the corporation is a nonresident at the end of the applicable taxation year, and

(b) the business of the corporation was, throughout the applicable taxation year, carried on solely in Canada.

(4)  For the purposes of this section, a corporation or a partnership that has a permanent establishment on land that it owns, or that it has a right or interest in, in Canada, at the end of a taxation year is deemed

(a) to carry on business during the year through that permanent establishment, and

(b) to use or hold the land for or in relation to that business.

(5)  This section does not apply to an authorized foreign bank.

 Partnerships

16  (1)  A corporation that has an interest in a partnership must include, in computing the corporation's B.C. paid up capital, the corporation's proportionate share of the following partnership amounts:

(a) in the case of a corporation to which section 8 applies, the subordinate indebtedness of the partnership;

(b) liabilities of the partnership, whether secured or unsecured, including any deferred credit but excluding

(i)  current accounts payable, and

(ii)  amounts owing by the partnership to the corporation or to other corporations that have an interest in the partnership;

(c) the earnings or losses of the partnership accumulated after the corporation acquired an interest in the partnership.

(2)  For the purposes of this Act, a corporation's proportionate share of partnership amounts must be computed on the same basis that the corporation's share of the income or loss from the partnership is computed.

(3)  The amounts in respect of a partnership, for which a corporation must account for its proportionate share under this Act for a taxation year, are the amounts determined

(a) if the partnership has a taxation year end that falls within the corporation's taxation year in respect of which the computation of the corporation's B.C. paid up capital is made, as at the end of that taxation year of the partnership, or

(b) if there is no taxation year end of the partnership that falls within that taxation year of the corporation, as at the taxation year end of the partnership immediately preceding that taxation year of the corporation.

17  (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, which series, 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 one or both of the following:

(i)  to obtain the tax benefit;

(ii)  to reduce, avoid or defer a tax or other amount payable as tax or in respect of tax under any other federal or provincial Act or increase a refund of tax or other amount in respect of tax under any other federal or provincial Act, or

(d) to be a transaction that would not result, directly or indirectly, in a misuse of the provisions of this Act or an abuse having regard to the provisions of this Act, other than this section, read as a whole;

"tax benefit" means a reduction, avoidance or deferral of tax or other amount payable under this Act or an increase in a refund of tax or other amount under this Act;

"tax consequences" tto a corporation means the B.C. paid up capital or the tax or other amount payable by, or refundable to, the corporation under this Act, or any other amount that is relevant for the purposes of computing that amount;

"transaction" includes an arrangement or event.

(2)  If a transaction is an avoidance transaction, the tax consequences to a corporation must be determined 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.

(3)  Without limiting subsection (2),

(a) any deduction in computing the B.C. paid up capital or any deduction in computing tax payable may be allowed or disallowed in whole or in part,

(b) the whole or any part of that deduction may be allocated to any corporation,

(c) the nature of any payment or other amount may be recharacterized, and

(d) the tax effects that would otherwise result from the application of other provisions of this Act may be ignored,

in determining the tax consequences to a corporation in a manner that is reasonable in the circumstances in order to deny a tax benefit that would, but for this section, result, directly or indirectly, from an avoidance transaction.

(4)  The tax consequences to any corporation, following the application of this section, must only be determined through a notice of assessment under section 28.

(5)  [Repealed 1997-6-15.]

 Annual return

18  (1)  A corporation that is subject to tax under this Act must, on or before the date that is 184 days after the end of the corporation's taxation year, and without notice or demand,

(a) deliver a return to the administrator, and

(b) pay to the minister the estimated tax or, if installment payments have been made under section 19, the difference between the estimated tax and the amount paid by installments.

(2)  The return must

(a) contain an estimate of the tax payable, and

(b) be verified by a certificate, signed by a person qualified under subsection (3), certifying that the financial statements included in the return, or attached, are in agreement with the books of the corporation.

(3)  The following persons are qualified to sign the certificate under subsection (2):

(a) the president or another officer of the corporation having personal knowledge of the affairs of the corporation;

(b) in the case of an extraprovincial company as defined in the Company Act, the manager or chief agent of the corporation in British Columbia.

(4)  A corporation may apply to the administrator for permission to extend the time under subsection (1), and if the administrator is satisfied of the circumstances, the administrator may extend the time.

(5)  Any extension of the time under subsection (4) does not constitute a waiver of liability for the tax, or for any penalties and interest imposed under this Act.

(6)  If a corporation fails or neglects to comply with subsection (1) (b), the corporation must pay interest on the amount it failed or neglected to pay calculated from the date on which the payment was required until the date that the payment plus all accrued interest is made.

19  (1)  A corporation whose tax payable under this Act exceeds $3 000 must pay installments in accordance with this section on account of its tax payable for the current taxation year.

(2)  Except as otherwise provided in this section, a corporation must, on or before the 15th day of each of the 3rd, 6th, 9th and 12th calendar months to follow the calendar month in which the corporation's current taxation year begins, pay an installment equal to 25% of the amount that is determined under subsection (4) to be its estimated tax payable for the current taxation year.

(3)  A corporation otherwise required by subsection (2) to make an installment during the period April 1, 1992 to August 31, 1992 inclusive must defer that installment and include it with the next installment due under subsection (2).

(4)  A corporation must determine its estimated tax payable, by using either of the following methods:

(a) by multiplying the tax payable by the corporation for its taxation year immediately preceding the current taxation year by the ratio that 365 bears to the number of days in that preceding taxation year;

(b) by estimating the amount.

(5)  For the first taxation year ending after March 31, 1992, the estimated tax payable calculated under subsection (4) (a) must be adjusted by multiplying the estimated tax payable by the ratio that the number of days in the current taxation year after March 31, 1992 bears to 365.

(6)  For the purposes of subsection (4) (a), the tax payable by a corporation for its taxation year immediately preceding the current taxation year must be computed the same way as would have been required if at all material times

(a) this Act had been in force, and

(b) the tax had been annualized on the basis of 365 days in a taxation year or 366 days in a taxation year affected by a leap year.

(7)  A corporation that does not pay an installment within the time limits in subsection (2) must pay interest on the amount of the installment calculated

(a) from the time the installment became due until payment is made, or

(b) if the installment is not paid by the date by which a return must be filed under section 18, from the time of the installment due date until that date.

(8)  If

(a) a corporation pays an installment on the basis of the estimate permitted by subsection (4) (b), and

(b) the amount of the installment is less than 25% of the corporation's tax payable for the current taxation year,

the corporation must pay interest on the amount of the difference calculated from the installment due date until the date by which the return must be filed under section 18.

(9)  Even though this Act was not in force before April 1, 1992, a corporation that pays an installment on the basis of the calculation permitted by subsection (4) (a) must provide to the administrator all the information necessary to verify the calculation.

(10)  The administrator may order a corporation to make installments of the taxes required in subsections (2) and (4) if

(a) the corporation estimates its tax payable for a taxation year at less than $3 000, and

(b) the administrator believes that the tax payable exceeds $3 000.

(11)  A corporation that is ordered under subsection (10) to make installments of the taxes required in subsections (2) and (4) must make the installments in accordance with the order.

(12)  If the aggregate amount of the installments paid by a corporation under this section exceeds the tax payable for the taxation year in respect of which the installments were paid, the amount by which an installment exceeded 25% of the amount of the corporation's tax payable for that taxation year earns interest from the later of the due date of the installment and the date that the overpayment was made.

(13)  Interest chargeable or creditable under this Act must be calculated at the rate and in the manner prescribed, and different rates of interest may be prescribed for different purposes.

(14)  If a corporation's estimated tax payable determined under subsection (4) exceeds a prescribed amount, the administrator may order the corporation to enter into an arrangement that requires the installment payments to be made by electronic means.

20  (1)  In this section, "responsible representative" means a person, other than a trustee in bankruptcy, who is an assignee, liquidator, administrator, receiver, receiver-manager or any other like person.

(2)  A responsible representative administering, winding up, controlling or otherwise dealing with a property or business of a corporation, before distributing to one or more persons any property over which the responsible representative has control in that capacity, must obtain a certificate from the administrator under this Act, certifying that all of the following amounts have been paid or that security for the payment of the amounts has been accepted by the administrator:

(a) amounts for which the corporation is liable under this Act for the taxation year in which the distribution is made, or any preceding taxation year;

(b) amounts for the payment of which the responsible representative is or can reasonably be expected to become liable as the responsible representative.

(3)  A responsible representative, who distributes to one or more persons property over which the responsible representative has control in that capacity without obtaining the certificate required by subsection (2), is personally liable for the payment of the amounts referred to in that subsection to the extent of the value of the property distributed.

(4)  The administrator may assess a responsible representative who is personally liable under subsection (3) for the amounts referred to in subsection (2), in the same manner and with the same effect as if the assessment were an assessment of the corporation under sections 22 and 28.

21  If the administrator thinks it necessary or advisable, or suspects that a corporation that has not made a return is liable to assessment, the administrator or a person authorized by the administrator, may make

(a) an independent investigation of the corporation, and

(b) an independent valuation and assessment of the B.C. paid up capital by the corporation.

23  (1)  If a person, acting or purporting to act on behalf of a corporation, knowingly or under circumstances amounting to gross negligence in the carrying out of any duty or obligation imposed by or under this Act, has made, or has participated in, assented to or acquiesced in the making of, a statement or omission in a return, certificate, statement or answer filed or made as required by or under this Act or the regulations, with the result described in subsection (2), then the corporation is liable to a penalty of 25% of the amount by which the tax that would have been payable is less than the tax payable by the corporation for the taxation year.

(2)  The result referred to in subsection (1), without which the penalty under that subsection does not apply, is that the tax that would have been payable by the corporation for a taxation year, if the tax had been imposed on the basis of the information provided in the return, certificate, statement or answer, is less than the tax payable by the corporation for the taxation year.

24  A person authorized in writing by the administrator may make inquiries he or she considers necessary for ascertaining the tax liability of a corporation, and for the purpose of those inquiries the authorized person has all the protection, powers and authority conferred on commissioners under Part 2 of the Inquiry Act.

 Power to make inquiry

24  A person authorized in writing by the administrator may make inquiries he or she considers necessary for ascertaining the tax liability of a financial corporation, and for the purpose of those inquiries the authorized person has all the protection, powers and authority conferred on commissioners under Part 2 of the Inquiry Act.

25  (1)  A corporation must keep adequate records for this Act, and if the records kept by the corporation, in the opinion of the administrator, are inadequate for this Act, the administrator may specify the records to be kept by that corporation.

(2)  If the records kept by a corporation, in the opinion of the administrator, are inadequate for this Act, or if a corporation, on the request of the administrator, fails or refuses to produce its records for examination by the administrator, or if a corporation alleges that the records kept by it have been lost or destroyed, the administrator may make his or her own valuation and assessment of the tax liability of the corporation.

26  A person, in whatever capacity, who has information about the tax liability of a corporation, when required to do so by notice from the administrator, must prepare and deliver to the administrator any information required within 30 days after the mailing of the notice.

28  (1)  After examination of a return, the administrator must

(a) verify or alter the amount of the tax payable, and

(b) give a notice of the assessment to the corporation.

(2)  If a notice of assessment provided to a corporation under subsection (1) (b) indicates that the amount of tax payable by the corporation is greater than the amount estimated by the corporation in its return, the corporation must pay to the minister the amount by which the corporation's tax payable exceeds the amount estimated by the corporation in its return not later than 29 days after the date on which the notice of assessment is given.

(3)  A corporation referred to in subsection (2) must pay interest on the amount by which the corporation's tax payable exceeds the amount estimated by the corporation in its return, calculated from the date that is 184 days after the end of the corporation's taxation year to and including the date on which payment of that amount plus all accrued interest is made.

29  (1)  Despite prior assessments, or if no assessment has been made, a corporation continues to be liable for any tax due under this Act, and the administrator, at any time, may

(a) assess or reassess any corporation for a tax, or

(b) make additional tax assessments against a corporation.

(2)  An assessment, reassessment or additional assessment under subsection (1) may be made

(a) at any time, if any person has made any misrepresentation or committed any fraud in making the return or supplying information under this Act, and

(b) within 6 years from the date of delivery of a return for a taxation year, in any other case.

 Continuing liability for taxes

29  (1)  Despite a prior assessment, or if no assessment has been made, a corporation continues to be liable for any tax due under this Act.

(2)  The administrator may assess or reassess a corporation for a tax or make an additional tax assessment against the corporation for a taxation year

(a) at any time

(i)  if any person has made any misrepresentation or committed any fraud in making the return or supplying information under this Act for the taxation year,

(ii)  if the corporation has filed a waiver with the administrator for the taxation year, in the form and containing the information required by the administrator, within 6 years from the date of delivery of a return for that taxation year, or

(iii)  if the corporation has not delivered a return for the taxation year, or

(b) within 6 years from the date of delivery of a return for the taxation year.

(3)  A waiver filed under subsection (2) (a) (ii) continues in effect until 6 months after the corporation files with the administrator a notice revoking the waiver in the form and containing the information required by the administrator.

30  (1)  If the examination of a return discloses that an overpayment has been made by a corporation, the minister, on the certificate of the administrator about the facts, must refund the overpaid amount to the corporation from the consolidated revenue fund.

(2)  If the examination of a return discloses that any further tax payable by a corporation referred to in subsection (1) is due or accruing due, any overpayment must be applied in satisfaction of that further tax, and notice must be given to the corporation, accompanied by the refund of any remainder of the overpayment remaining unapplied.

31  (1)  A notice of assessment under this Act must be in writing, and is sufficiently given if delivered to an office of the corporation or to the address of the corporation stated in the last return under this Act or last known to the administrator.

32  (1)  Except as otherwise provided in this Act, a corporation that objects to the amount at which it is assessed, or considers that it is not liable to taxation, in whole or in part, may personally or by its agents, within 90 days after the date of mailing the notice of assessment provided for in this Act, or within 90 days after the date of filing the return, serve a notice of an appeal to the minister by mailing it by registered mail addressed to the minister at the Parliament Buildings at Victoria, British Columbia.

(2)  The notice must

(a) state the name and address of the corporation, the amount of the tax and the date of the notice of assessment, if any, and

(b) set out clearly and fully the reasons for the appeal and the facts on which it is based.

(3)  On receiving the notice of appeal, the minister must

(a) consider it and the information and documents on file in the office of the administrator,

(b) decide the matter, and

(c) notify the appellant of the decision.

35  (1)  Neither the giving of a notice of appeal by any corporation nor any delay in the hearing of the appeal in any way

(a) affects the date for payment, the interest or penalties or any liability for payment provided by this Act for tax that is the subject matter of the appeal, or

(b) delays the collection of the tax.

(2)  If the tax is set aside or reduced on appeal, the minister must refund to the corporation

(a) the amount of the tax or excess paid by the corporation, and

(b) the amount of any additional interest or penalty imposed and paid on that tax or excess.

37  Before taking any proceedings for the recovery of the tax under this Act, the administrator must give notice to the corporation of the intention to enforce payment, but failure to give notice does not affect the validity of any enforcement proceedings taken.

40  (1)  If the administrator has knowledge or suspects that a person is or is about to become indebted or liable to make a payment to a corporation, the administrator may demand that the person pay all or part of the money otherwise payable to the corporation to the minister on account of the corporation's liability under this Act.

(2)  Without limiting subsection (1), if the administrator has knowledge or suspects that a person is about to advance money to, make a payment on behalf of, or make a payment in respect of a negotiable instrument issued by, a corporation, the administrator may demand that that person pay to the minister on account of the corporation's liability under this Act the money that would otherwise be so advanced or paid.

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

(a) personal service,

(b) registered mail, or

(c) electronic mail or fax.

(3)  If, under this section, the administrator demands that a person pay to the minister, on account of the liability under this Act of a corporation, money otherwise payable by that person to the corporation as interest, rent, remuneration, a dividend, an annuity or other periodic payment, the demand

(a) applies to all of those payments to be made by the person to the corporation until the liability under this Act is satisfied, and

(b) operates to require payments to the administrator out of each payment of the amount stipulated by the administrator in the demand.

(4)  Money or a beneficial interest in money in a savings institution

(a) on deposit to the credit of a corporation at the time a demand is served, or

(b) deposited to the credit of a corporation after a demand is served

is money for which the savings institution is indebted to the corporation within the meaning of this section, but money on deposit or deposited to the credit of a corporation as described in paragraph (a) or (b) does not include money on deposit or deposited to the credit of a corporation in its capacity as a trustee.

(5)  A demand under this section continues in effect until the earlier of

(a) the demand being satisfied, or

(b) the expiration of 90 days after the demand is served.

(6)  Despite subsection (5), a demand made in respect of a periodic payment referred to in subsection (3) continues in effect until satisfied unless no periodic payment is made or is liable to be made within 90 days after the demand is served, in which case the demand ceases to have effect on the expiration of that period.

(6.1)  Money demanded from a person by the administrator under this section becomes payable

(a) as soon as the person is served with the demand, if the person is indebted or liable to make a payment to the corporation at the time the demand is served, or

(b) as soon as the person becomes indebted or liable to make a payment to the corporation, in any other case.

(7)  A person who fails to comply with a demand under subsection (1) or (3) is liable to pay to the government an amount equal to the amount that the person was required under subsection (1) or (3), as the case may be, to pay to the minister.

(8)  A person who fails to comply with a demand under subsection (2) is liable to pay to the government an amount equal to the lesser of

(a) the aggregate of the money advanced or paid, and

(b) the amount that the person was required under subsection (2) to pay to the minister.

(9)  The receipt of the minister for money paid under this section is a good and sufficient discharge of the original liability to the extent of the payment.

(10)  Money paid by any person to the minister in compliance with a demand under this section is deemed to have been paid by that person to the corporation in respect of which the demand was made.

(11)  If a person carries on business under a name or style other than the person's own name, the demand under subsection (1), (2) or (3) may be addressed to the name or style under which the person carries on business and, in the case of personal service, is deemed to have been validly served if left with an adult person employed at the place of business of the addressee.

(12)  If persons carry on business in partnership, the demand under subsection (1), 2) or (3) may be addressed to the partnership name and, in the case of personal service, is deemed to have been validly served if served on one of the partners or left with an adult person employed at the place of business of the partnership.

41  (1)  The administrator or the administrator's agent may levy the amount of the tax that is due and payable, with costs, by distress of

(a) the goods and chattels of the corporation liable to pay the tax,

(b) any goods and chattels in that corporation's possession, wherever they may be found in British Columbia, or

(c) any goods and chattels found on that corporation's premises that are the property of or in the possession of any other occupant of the premises and that would be subject to distress for arrears of rent due to a landlord.

(2)  The costs of the administrator or the agent of the administrator for a distress under this section are chargeable against the corporation referred to in subsection (1) and are those payable as between landlord and tenant.

(3)  If distress is made, the administrator or the administrator's agent, by advertisement posted in at least 3 conspicuous public places in the locality where the sale of the distrained property is to be made, must give at least 10 days' public notice of the time and place of the sale and of the name of the corporation in default.

(4)  At the time given in the notice, the administrator or the administrator's agent must sell at public auction the distrained property, or so much of it as may be necessary.

(5)  If the distrained property is sold for more than the amount of the tax and costs, and if no claim to the surplus is made by any other person on the ground that the property sold belonged to the person, or that the person was entitled by lien or other right to the surplus, the surplus must be paid over to the person who had possession of the property when the distress was made, and a receipt must be taken.

(6)  If a claim is made by the corporation for whose tax the property was distrained, and the claim is admitted, the surplus must be paid to the corporation, and a receipt must be taken.

(7)  If the claim is contested, the surplus must be retained by the administrator until the rights of the parties have been determined in court or otherwise.

46  (1)  A corporation that fails to deliver a return as and when required by section 18 must pay a penalty of an amount equal to 10% of the tax that was unpaid when the return was required to be delivered.

(2)  A corporation that fails to pay the tax due within the period required under sections 18 and 19 must pay a penalty of 10% of the tax that was unpaid.

(3)  A corporation that fails to complete the information required on the return to be delivered under section 18 is liable to a penalty of $50.

(4)  A corporation referred to in this section must pay any penalty applicable to it whether or not the corporation is also obliged to pay any interest under this Act.

47  (1)  Section 5 of the Offence Act does not apply to this Act or to the regulations.

(2)  A person who does any of the following commits an offence:

(a) makes, or participates in, assents to or acquiesces in the making of, false or deceptive statements in a return, certificate, statement or answer delivered or made as required by or under this Act or the regulations;

(b) in order to evade payment of the tax imposed by this Act, destroys, alters, mutilates, secrets or otherwise disposes of the records of a corporation;

(c) makes, or assents to or acquiesces in the making of, false or deceptive entries, or omits, or assents to or acquiesces in the omission, to enter a material particular, in the records of a corporation;

(d) willfully in any manner evades or attempts to evade compliance with or payment of tax imposed by this Act;

(e) conspires with any person to commit an offence described in paragraphs (a) to (d).

(3)  In addition to any penalty otherwise provided by this Act, a person who commits an offence referred to in subsection (2) is liable on conviction to a fine of not less than $25 and not more than $10 000 plus, in an appropriate case, an amount of not more than double the amount of the tax that should have been shown to be payable or that was sought to be evaded, or to imprisonment for a term of not more than 2 years, or to both a fine and imprisonment.

(4)  For every default in complying with section 25, 26, 29 or 30, the persons in default are each liable, on conviction, to a penalty of not less than $10 for each day during which the default continues.

(5)  An officer, director or agent of the corporation who directed, authorized, assented to or acquiesced or participated in the commission of the offence is a party to the offence, but this section does not affect the liability of the corporation for the same offence.

(6)  A person who contravenes section 19 (11), 22 (3) or 27 commits an offence and is liable to a fine of not more than $2 000.