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This Act is current to January 20, 2021
See the Tables of Legislative Changes for this Act’s legislative history, including any changes not in force.

Income Tax Act

[RSBC 1996] CHAPTER 215

Contents
1Definitions and interpretation
Part 1 — Income Tax
Division 1 — Liability for Tax
2Liability for tax
3Repealed
Division 2 — Individual Income Tax
4Definitions
4.1Amount of tax payable
4.2Deductions
4.3Personal credits
4.301BC tax reduction credit
4.31Age credit
4.32Pension credit
4.33Adoption expense credit
4.34-
4.341
Repealed
4.35Repealed
4.351Repealed
4.36BC education coaching tax credit
4.37Tax credit for volunteer firefighters and search and rescue volunteers
4.4Charitable and other gifts
4.5Medical expense credit
4.51Credit for mental or physical impairment
4.52Indexing
4.6Tuition credit
4.61Repealed
4.62Unused tuition and education tax credits
4.63Credit for interest on student loan
4.64Credit for EI premium and CPP contribution
4.65Transfer of unused credits to spouse or common-law partner
4.66Tuition tax credit transferred
4.67Transfer of unused credits to parent or grandparent
4.68Minimum tax credit
4.69Dividend tax credit
4.7Overseas employment tax credit
4.71Foreign tax credit
4.72Supplementary credit for 2000 taxation year
4.721BC mining flow-through share tax credit
4.722Political contributions
4.73Restrictions on credits: trusts
4.74Restrictions on credits: year of bankruptcy
4.75Restrictions on credits: income earned outside BC
4.76Restrictions on credits: part-year residents
4.77Restrictions on credits: non-residents
4.78Credits in separate returns
4.79Order of making deductions
4.8Minimum tax
4.81CPP/QPP disability benefits for previous years
4.82Qualifying retroactive lump sum pension payments
4.83Lump sum pension payment
4.84Tax on split income
4.85Apportionment of additional taxes
4.86Repealed
4.87Bankrupt individuals
5-7Repealed
7.1Repealed
8Refundable sales tax credit
8.1Climate action tax credit
8.2BC harmonized sales tax credit
9-13Repealed
13.01Definitions for climate action dividend
13.02Climate action dividend
13.03Climate action dividend cannot be attached or assigned
13.04Climate action dividend — general
13.05Climate action dividend — no further assessments, determinations or decisions
13.06Climate action dividend regulations
13.07Application of federal provisions — interpretation for BC early childhood tax benefit
13.071BC early childhood tax benefit
13.08Application of federal provisions to BC early childhood tax benefit — rules about eligible individuals and their spouses or common-law partners
13.081BC early childhood tax benefit cannot be attached or assigned
13.09BC early childhood tax benefit regulations
13.091Application of federal provisions — interpretation for BC child opportunity benefit
13.092BC child opportunity benefit
13.093Application of federal provisions to BC child opportunity benefit — rules about eligible individuals and their spouses or common-law partners
13.094 BC child opportunity benefit cannot be attached or assigned
13.095BC child opportunity benefit regulations
13.1Net employee investment tax credit
13.2Refunds to mutual fund trusts
Division 3 — Corporate Income Tax
13.3Definitions
14Corporation income tax
14.1Corporate straddle provision
15Repealed
16Small business rate
17Two-year tax holiday for new small businesses
18Appeal of refusal or rescission of certificate of eligibility
18.1Order of making deductions
Division 4 — Individual and Corporate Income Tax
19Repealed
19.1Logging tax deduction
20Renumbered
20.1Farmers' food donation tax credit
21Small business venture capital tax credit
22-24Repealed
25Qualifying environmental trusts: tax and tax credit
25.1Mining exploration tax credit
26Repealed
27Exemptions
28Repealed
Division 5 — Returns, Assessments and Appeals
29Application of federal provisions — returns of income and assessments of tax
30Reassessment and amended return
31Instalment payments: farmers and fishers
32Instalment payments: other individuals
33Application of federal provision — payments by corporations
34Application of federal provisions — returns, payments and interest
35Refund for tax credits
36Amount on which instalment calculated
37Application of federal provisions — failure to file return or corporate return and failure to provide information
38Application of federal provisions — failure to report income, false statement or omission and burden of proof on appeal
39Application of federal provisions — penalty for late or deficient instalments
39.1Application of federal provisions — misrepresentation of tax matter by third party
40Application of federal provisions — refunds
41Application of federal provisions — objections to assessments and extension of time
42Appeal by taxpayer
43Reply
44Procedure
45Application of federal provisions — irregularities, extension of time and private hearings
46Court practice
Part 2 — Administration and Enforcement
47Application of federal provisions — administration, interest, garnishment and proceedings to collect
48Power to make regulations
49Application of federal provisions — debts to Her Majesty
50Application of federal provisions — certificates
51Warrant
52Application of federal provisions — acquisition of debtor's property
53Application of federal provisions — payment of money seized from tax debtor
54Application of federal provisions — seizure of goods
55Application of federal provisions — taxpayer leaving Canada or defaulting
56Application of federal provisions — withholding taxes
57Application of federal provisions — liability of directors
58Books and records
59Application of federal provisions — inspections, privilege, information returns and corporate execution
60Repealed
61Offence and penalty
62Application of federal provisions — further offences
63Powers of federal minister
64Communication of information and related offences
65Information-sharing agreements
66Application of federal provisions — liability of officer or agent of corporation
67Application of federal provisions — restriction on power of court
68Procedure and evidence
68.1Anti-avoidance rule
68.2Reportable transactions
Part 3 — Collection of Tax
69Collection agreement
70Payments on account
71No action against persons withholding tax
72Relief of taxpayer
73Non-agreeing provinces
74Enforcement of judgments
Part 4 — Miscellaneous
75Appointments
76Delegation of powers
77Duty of officers of government to provide information
77.1Timber harvest information
77.2British Columbia Assessment Authority must provide information
78Costs and expenses
Part 5 — Film and Television Tax Credit
79Definitions and interpretation
80Basic tax credit
80.1Scriptwriting tax credit
81Regional tax credit if principal photography begins before April 1, 2003
81.1Regional tax credit if principal photography begins after March 31, 2003
81.11Distant location regional tax credit
81.2Digital animation, visual effects and post-production tax credit
82Film training tax credit
82.1Production services tax credit
82.2Regional production services tax credit
82.21Distant location production services tax credit
82.3Digital animation, visual effects and post-production services tax credit
83No credit available if section 17 deduction made
83.1May not claim both accredited production and eligible production credits
84Deemed payment
84.1Notice of intention to claim production services tax credit
85Application for tax credit
86Eligibility certificate
87Completion certificate
87.1Accreditation certificate
87.2Amendments to certificates
87.3When notice deemed not to have been given
88Revocation of certificates
89Notice of refusal or revocation
90Tax credit must be reimbursed
91Recovery of debt
92Reconsiderations and certification appeals
93Powers of audit
94Minister and Commissioner may require information regarding certificates
95Collection and sharing of information
96Power to make regulations
Part 6 — British Columbia Scientific Research and Experimental Development Tax Credit
97Definitions
97.1Interpretation — taxation year of partnerships
98Refundable tax credit available
99Non-refundable tax credit available
99.1Credit amount in respect of a partnership
100Renunciation of tax credit
101Amalgamations and wind ups
102No credit available if section 17 deduction made
102.1Recapture of tax credit corporations
102.11Recapture of amounts — partnership
102.2Recapture rules do not apply to specified non-arm's length transfers
102.3Recapture of tax credit from non-arm's length purchasers — corporations
102.4Recapture of amounts from non-arm's length purchasers — partnerships
102.5Recapture of tax credit by corporation in respect of a partnership
102.6Recapture of amounts — tiered partnership
103Filing requirements
Part 7 — British Columbia Manufacturing and Processing Tax Credit
104Interpretation
105Non-refundable tax credit available
106Partnerships
107Renunciation of tax credit
108Amalgamations and wind ups
109No credit available for year in which section 17 deduction made
110Filing requirements
Part 8 — Book Publishing Tax Credit
111Definitions and interpretation
112Book publishing tax credit
113Deemed payment
114Filing requirements
115Power to make regulations
Part 9 — Training Tax Credits
Division 1 — Definitions
116Definitions
Division 2 — Tax Credits for Individuals
117Application of this Division
118Basic tax credit for individuals
119Completion tax credit for individuals
119.1Certification tax credit for individuals
120Enhanced tax credit for individuals
Division 3 — Tax Credits for Employers
121Definition for this Division
122Basic tax credit for employers
123Completion tax credit for employers
124Enhanced tax credit for employers
124.1Enhanced tax credit for employers — eligible apprentice
124.2No credits for eligible industry employer
125Restrictions on credits: multiple employers
126Restrictions on credits: partnership
Division 3.1 — Tax Credits for Shipbuilding and Ship Repair Industry Employers
126.1Definitions for this Division
126.2Basic tax credit for eligible industry employers
126.3Completion tax credit for eligible industry employers
126.4Enhanced tax credit for eligible industry employers
126.5Restrictions on credits: multiple eligible industry employers
126.6Restrictions on credits: partnership
Division 4 — Administration
127Deemed payment
128Filing requirements
129Powers of audit
130Collection and sharing of information
131Power to make regulations
Part 10 — Interactive Digital Media Tax Credit
132Definitions
133Eligibility for tax credit
134Interactive digital media tax credit
135Deemed payment
136Registration
137Reconsiderations and appeals
138Filing requirements
139Powers of audit
140Power to make regulations
Part 11 — Home Renovation Tax Credit for Seniors and Persons with Disabilities
141Definitions
142Home renovation tax credit for seniors and persons with disabilities
143Part-year residents
144Bankruptcy
145Death
146Relationship to other credits
147Deemed payment of tax
148Filing requirements
149Powers of audit
150Power to make regulations
Part 12 — BC First-Time New Home Buyers' Bonus
151Definitions
152Tax credit for first-time new home buyers
153Deemed payment of tax
154Application for tax credit
155Determination of tax credit
156Determination period
157Determination valid and binding
158Notice to commissioner of subsequent assessment
159Payment of tax refund
160Tax refund cannot be attached or assigned
161Imposition of administrative penalty
162Administrative penalties
163Waiver or cancellation of penalty
164Appeal to minister
165Liability for recoverable amount
166Collection of recoverable amount
167Powers of audit
168Application of other provisions
169Administration
170Delegation of powers
171Power to make regulations
Part 13 — Natural Gas Tax Credit
Division 1 — Definitions
172Definitions
Division 2 — Natural Gas Tax Credit
173Natural gas tax credit
174Credit calculation change
175Tax calculation change
176Amalgamations and wind ups
Division 3 — Cost of Natural Gas
177Definitions for this Division
178Deemed purchase of natural gas
179Cost of natural gas notionally acquired in month
180Notional cost of natural gas notionally acquired in month
181Transportation cost for natural gas notionally acquired in month
Division 4 — Administration
182Definition for this Division
183Application for tax credit
184Determination of tax credit
185Deemed payment of tax
186Payment of tax refund
187Determination period
188Rules relating to determinations
189Notice of determination
190Notice to commissioner of subsequent assessment
191Imposition of administrative penalty
192Administrative penalties
193Waiver or cancellation of penalty
194Interest payable to government under this Part
195No interest if full payment within 30 days
196Waiver or cancellation of interest
197Interest on tax refunds
198Excess refund
199Liability for amounts owing to government
200Collection of amounts owing to government
201Appeal to Provincial minister
202Appeal to court
203Irregularities
204Collection of amounts owing not affected by pending appeal
205If decision set aside or amount reduced on appeal
Division 5 — General
206Administration
207Powers of audit
208Delegation of powers
209Collection and sharing of information
210Application of other provisions
211Volume, heating value and sampling of natural gas
212When documents are filed with or given to commissioner or Provincial minister
213Power to make regulations
Part 14 — Emergency Benefit for Workers
214Definitions
215Eligibility for emergency benefit
216Application for tax credit
217Determination of tax credit
218Payment of emergency benefit
219Notice to commissioner if individual no longer eligible for emergency benefit
220Determination period
221Overpayment cannot be attached or assigned
222Imposition of administrative penalty
223Administrative penalties
224Waiver or cancellation of penalty
225Interest payable to government under this Part
226No interest if full payment within 30 days
227Waiver or cancellation of interest
228Appeal to Provincial minister
229Appeal to court
230Irregularities
231Individual to repay amount
232Liability for amounts owing to government
233Collection of amounts owing to government
234Powers of audit
235Delegation of powers
236Application of other provisions
237Administration
238Power to make regulations
239Repeal by regulation

Definitions and interpretation

1   (1) In this Act:

"agreeing province" means a province that has entered into an agreement with the government of Canada under which the government of Canada will collect taxes payable under that province's income tax statute and will make payments to that province in respect of the taxes so collected;

"amount" has the same meaning as in the federal Act;

"assessment" has the same meaning as in the federal Act;

"balance-due day" has the same meaning as in the federal Act;

"British Columbia" means the Province of British Columbia;

"business" has the same meaning as in the federal Act;

"Canadian-controlled private corporation" has the same meaning as in section 248 of the federal Act;

"collection agreement" means an agreement entered into under section 69 (1);

"corporation" has the same meaning as in the federal Act;

"court" means the Supreme Court of British Columbia;

"deputy head" means,

(a) if a collection agreement is not in effect, the deputy Provincial minister, or

(b) if a collection agreement is in effect, the Commissioner of Customs and Revenue;

"employed" has the same meaning as in the federal Act;

"employee" has the same meaning as in the federal Act;

"employer" has the same meaning as in the federal Act;

"federal Act" means the Income Tax Act (Canada);

"federal minister" means,

(a) in relation to the remittance of any amount as or on account of tax payable under this Act, the Receiver General for Canada, and

(b) in relation to any other matter, the Minister of National Revenue;

"federal regulations" means the regulations made under the federal Act;

"finance minister" means the member of the Executive Council charged with the administration of the Financial Administration Act;

"fiscal period" has the same meaning as in the federal Act;

"income tax statute" means, in relation to an agreeing province, the law of that province that imposes a tax similar to the tax imposed under this Act;

"individual" means a person other than a corporation and includes a trust or estate;

"loss" means a loss as determined in accordance with and for the purposes of the federal Act;

"minister" means,

(a) if a collection agreement is not in effect, the Provincial minister, or

(b) if a collection agreement is in effect, the federal minister;

"ministry" means the ministry of the Provincial minister;

"permanent establishment" has the same meaning as in the federal Act;

"person", or any word or expression descriptive of a person, has the same meaning as in the federal Act;

"Provincial minister" means the member of the Executive Council charged with the administration of this Act;

"regulation" means a regulation made under this Act;

"taxable income" has the same meaning as in the federal Act;

"taxation year" has the same meaning as in section 249 (1) of the federal Act;

"taxpayer" has the same meaning as in the federal Act.

(2) The expression "last day of the taxation year", in the case of an individual who resided in Canada at any time in the taxation year but ceased to reside in Canada before the last day of that year, is deemed to be a reference to the last day in the taxation year on which the individual resided in Canada.

(3) The tax payable by a taxpayer under this Act or under Part I of the federal Act means the tax payable by the taxpayer as fixed by assessment or reassessment, subject to variation on objection or on appeal, if any, in accordance with this Act or Part I of the federal Act, as the case may be.

(4) For the purposes of this Act, unless they are at variance with the definitions in this Act or in the regulations made under this Act, the definitions in the federal Act, and the definitions and interpretations made by federal regulations, apply.

(4.1) For the purposes of this Act, a series of transactions or events is deemed to include any related transactions or events completed in contemplation of the series.

(5) In any case of doubt, the provisions of this Act must be applied and interpreted in a manner consistent with similar provisions of the federal Act.

(6) Section 248 (11) of the federal Act applies for the purposes of this Act to the extent that that provision applies to sections 161 (1), (2) and (11), 164 (3) to (4) and 227 (8.3) and (9.2) of the federal Act.

(6.1) Section 261 [Canadian and functional currency reporting] of the federal Act applies for the purposes of this Act as follows:

(a) subject to paragraphs (b) to (d) of this subsection, section 261 of the federal Act applies in respect of taxation years that begin on or after December 14, 2007;

(b) the definition of "Canadian tax results" in section 261 (1) of the federal Act applies to all taxation years;

(c) section 261 (2) [Canadian currency requirement] of the federal Act applies to all taxation years;

(d) section 261 (15) [amounts carried back] of the federal Act applies on and after December 14, 2007.

(6.2) If section 261 (5) of the federal Act applies to a taxpayer in respect of a particular taxation year, that section, as it applies for the purposes of this Act, applies to the taxpayer in respect of the particular taxation year.

(7) If a provision, in this subsection referred to as "that section", of the federal Act or the federal regulations is made applicable for the purposes of this Act, that section, as amended from time to time before or after this subsection came into force, applies with such modifications as the circumstances require for the purposes of this Act as though it had been enacted as a provision of this Act, and in applying that section for the purposes of this Act, in addition to any other modifications required by the circumstances,

(a) a reference in that section to tax under Part I of the federal Act must be read as a reference to tax under this Act,

(b) if that section contains a reference to tax under any of Parts I.1 to XIV of the federal Act, that section must be read without reference to tax under any of those Parts and without reference to any portion of that section that applies only to or in respect of tax under any of those Parts,

(c) a reference in that section to a particular provision of the federal Act that is the same as or similar to a provision of this Act must be read as a reference to the provision of this Act,

(d) any reference in that section to a particular provision of the federal Act that applies for the purposes of this Act must be read as a reference to the particular provision as it applies for the purposes of this Act,

(e) if that section contains a reference to any of Parts I.1 to XIV of the federal Act or to a provision in any of those Parts, that section must be read without reference to that Part or without reference to that provision, as the case may be, and without reference to any portion of that section that applies only because of the application of any of those Parts or the application of a provision in any of those Parts,

(f) subject to subsection (7.1), if that section contains a reference to the Bankruptcy and Insolvency Act (Canada), that section must be read without reference to the Bankruptcy and Insolvency Act (Canada),

(g) subject to paragraph (h), a reference in that section to the federal Act or the federal regulations must be read as including a reference to this Act or a regulation made under this Act,

(h) a reference in that section to the words "under this Act or under an Act of a province with which the Minister of Finance has entered into an agreement for the collection of taxes payable to the province under that Act" must be read as a reference to this Act, and

(i) subject to subsections (8) and (8.1), a reference in that section to a word or expression set out in Column 1 of the following table must be read as a reference to the word or expression set out opposite it in Column 2:

TABLE
Column 1Column 2
Her MajestyHer Majesty in Right of the Province of British Columbia
CanadaBritish Columbia
Receiver Generalfinance minister
Commissioner of Customs and Revenuedeputy head
Deputy Attorney General of CanadaDeputy Attorney General of British Columbia
Tax Court of CanadaSupreme Court of British Columbia
Tax Court of Canada ActSupreme Court Act
Federal Court of CanadaSupreme Court of British Columbia
Federal Court ActSupreme Court Act
Registrar of the Tax Court of CanadaRegistrar of the Supreme Court of British Columbia
Registry of the Federal CourtRegistry of the Supreme Court of British Columbia
Criminal CodeOffence Act
Canada Customs and Revenue Agencyministry
MinisterProvincial minister

(7.1) Subsection (7) (f) does not apply to section 222 (8) (d) of the federal Act as that section applies for the purposes of this Act.

(8) In applying any of the following provisions of the federal Act for the purposes of this Act, a reference in that provision to Canada must be read as a reference to Canada:

(a) section 118.5;

(b) section 118.6 (1);

(b.1) the definition of "Canadian exploration expense" in section 66.1 (6) of the federal Act as that definition applies for the purposes of section 4.721 of this Act by virtue of paragraph (b) of the definition of "BC flow-through mining expenditure" in section 4.721 (1) of this Act;

(c) the definition of "specified individual" in section 120.4 of the federal Act as that definition applies for the purposes of sections 4 (1) and 4.84 of this Act;

(c.1) the definition of "return of income" in section 122.5 (1) of the federal Act as that definition applies for the purposes of sections 8.1 and 8.2 of this Act;

(c.2) section 122.5 (6.2) as that section applies for the purposes of sections 8.1 and 8.2 of this Act;

(d) the definitions of "eligible individual" and "return of income" in section 122.6 of the federal Act as those definitions apply for the purposes of sections 13.07 to 13.095 of this Act;

(d.1) section 222 (8) (c);

(d.2) the definition of "non-resident" in section 248 (1) of the federal Act as that definition applies for the purposes of section 122.5 (6.2) of the federal Act, as that section applies for the purposes of sections 8.1 and 8.2 of this Act;

(e) the definition of "taxable income earned in Canada" in section 248 (1) of the federal Act as that definition applies for the purposes of subsection (6.1) of this section and Division 2 of Part 1 of this Act;

(f) section 261.

(8.1) If a collection agreement is in effect, in applying the federal Act for the purposes of this Act,

(a) a reference to the Commissioner of Customs and Revenue in the federal Act must continue to be read as a reference to the Commissioner of Customs and Revenue,

(b) a reference to the Minister in the federal Act must continue to be read as a reference to the Minister, and

(c) a reference to the Receiver General in the federal Act must continue to be read as a reference to the Receiver General.

(9) [Repealed 2003-23-16.]

(10) In this Act or a regulation made under this Act, if a reference to a provision of the federal Act or the federal regulations is followed by italicized text in square brackets that is or purports to be descriptive of the subject matter of the provision, the text in square brackets

(a) is not part of this Act or the regulation, and

(b) is to be considered to have been added editorially for convenience of reference only.

Part 1 — Income Tax

Division 1 — Liability for Tax

Liability for tax

2   (1) An income tax must be paid as required in this Act for each taxation year by every individual

(a) who was resident in British Columbia on the last day of the taxation year, or

(b) who, not being resident in British Columbia on the last day of the taxation year, had income earned in the taxation year in British Columbia as defined in section 4 (1).

(2) An income tax must be paid as required in this Act for each taxation year by every corporation that maintained a permanent establishment in British Columbia at any time in the year.

Repealed

3   [Repealed 2000-15-3.]

Division 2 — Individual Income Tax

Definitions

4   (1) In this Division:

"appropriate percentage" for a taxation year means the lowest percentage specified in section 4.1 (1) that is applicable in determining tax payable under this Act for the year;

"income earned in the taxation year in British Columbia" means the income earned in the taxation year in British Columbia as determined in accordance with federal regulations made for purposes of the definition of "income earned in the year in a province" in section 120 (4) of the federal Act;

"income earned in the taxation year outside British Columbia" means income for the year minus income earned in the taxation year in British Columbia;

"income for the year" means,

(a) in the case of an individual to whom section 114 of the federal Act applies who was resident in Canada during part only of the year, the individual's income for the year as defined in section 120 (3) (a) of the federal Act,

(b) in the case of an individual who was not resident in Canada at any time in the year, the individual's income for the year as defined in section 120 (3) (b) of the federal Act,

(c) in the case of an individual who is a specified individual in relation to the year, the individual's income for the year as defined in section 120 (3) (c) of the federal Act, and

(d) in the case of any other individual, the individual's income for the year as determined in accordance with and for the purposes of the federal Act;

"taxable income earned in Canada" has the same meaning as in the federal Act.

(2) [Repealed 2003-23-18.]

Amount of tax payable

4.1   (1) Subject to subsections (2), (3) and (5) to (7) of this section and to sections 4.52 and 4.8 to 4.84, the tax payable under this Act by an individual on the individual's taxable income for the 2008 and subsequent taxation years is as follows:

(a) if the taxable income does not exceed $30 004, 5.06% of the taxable income;

(b) if the taxable income exceeds $30 004 and does not exceed $60 009,

(i) the highest amount that might be determined for an individual under paragraph (a) of this subsection,

plus

(ii) 7.7% of the taxable income that exceeds $30 004 and does not exceed $60 009;

(c) if the taxable income exceeds $60 009 and does not exceed $70 000,

(i) the highest amount that might be determined for an individual under paragraph (b) of this subsection,

plus

(ii) 10.5% of the taxable income that exceeds $60 009 and does not exceed $70 000;

(d) if the taxable income exceeds $70 000 and does not exceed $85 000,

(i) the highest amount that might be determined for an individual under paragraph (c) of this subsection,

plus

(ii) 12.29% of the taxable income that exceeds $70 000 and does not exceed $85 000;

(e) if the taxable income exceeds $85 000 and does not exceed $150 000,

(i) the highest amount that might be determined for an individual under paragraph (d) of this subsection,

plus

(ii) 14.7% of the taxable income that exceeds $85 000 and does not exceed $150 000;

(f) [Repealed 2013-17-21.]

(g) if the taxable income exceeds $150 000 and does not exceed $220 000,

(i) the highest amount that might be determined for an individual under paragraph (e) of this subsection,

plus

(ii) 16.8% of the taxable income that exceeds $150 000 and does not exceed $220 000;

(h) if the taxable income exceeds $220 000,

(i) the highest amount that might be determined for an individual under paragraph (g) of this subsection,

plus

(ii) 20.5% of the taxable income that exceeds $220 000.

(2) For the purposes of subsection (1) (b) (i), (c) (i), (d) (i), (e) (i), (g) (i) and (h) (i), the highest amount that might be determined for an individual under subsection (1) (a), (b), (c), (d), (e) or (g), as the case may be, must be rounded to the nearest multiple of one dollar or, if the highest amount is equidistant from 2 such consecutive multiples, to the higher multiple.

(3) Subject to subsections (4) to (7) of this section and to sections 4.52 and 4.8 to 4.84, if the individual is a trust, the tax payable under this Act by the trust on its taxable income for a taxation year is the total of the following:

(a) the amount determined by the formula

H × I
where
H is the highest percentage specified in subsection (1) of this section that applies in determining tax that might be payable by an individual under this Act for the year, and
I is the taxable income of the trust for the year;

(b) if section 122 (2) of the federal Act applies to the trust for the taxation year, the amount equal to the amount that would be determined under section 122 (1) (c) of the federal Act if

(i) subparagraph (i) of the description of "A" in section 122 (1) (c) of the federal Act were read as follows:

(i) the rate of tax payable under the Income Tax Act (British Columbia) by the trust for each taxation year referred to in the description of B were the highest percentage specified in section 4.1 (1) of that Act that applies in determining tax that might be payable by an individual under that Act for the year, and

(ii) the reference in the description of "B" in section 122 (1) (c) of the federal Act to "under this Part" were read as a reference to "under that Act".

(4) Subsection (3) of this section does not apply to a qualified disability trust, as defined in section 122 (3) of the federal Act, or a graduated rate estate.

(5) Subject to section 4.85 (1), if the individual was resident in British Columbia on the last day of the taxation year and had income earned in the taxation year outside British Columbia, the tax payable under this Act is the amount determined by the formula

where
A is the amount determined for the individual under
(a) subsections (1) and (2) of this section, if the individual is not a trust to which subsection (3) applies, or
(b) subsection (3), if the individual is a trust to which subsection (3) applies,
B is the individual's income for the year, and
C is the individual's income earned in the taxation year outside British Columbia.

(6) Subject to section 4.85 (2), if the individual was not resident in British Columbia on the last day of the taxation year but had income earned in the taxation year in British Columbia, the tax payable under this Act is the amount determined by the formula

where
A is the amount determined for the individual under
(a) subsections (1) and (2) of this section, if the individual is not a trust to which subsection (3) applies, or
(b) subsection (3), if the individual is a trust to which subsection (3) applies,
B is the individual's income earned in the taxation year in British Columbia, and
C is the individual's income for the year.

(7) For the purposes of applying subsections (1) and (3) of this section to an individual who was not resident in Canada at any time in the taxation year, the phrase "taxable income" in subsections (1) and (3) must be read as "taxable income earned in Canada".

Deductions

4.2   (1) The amounts that, in computing an individual's tax, may be deducted under sections 4.3, 4.31 to 4.65, 4.67, 4.69, 4.7 and 20.1 may be deducted only in the order indicated in section 4.79 (1) and, subject to section 4.84 (3) (b), only from the amount of tax payable under section 4.1.

(2) The amounts that, in computing an individual's tax, may be deducted under sections 4.68 and 4.71 may be deducted only in the order indicated in section 4.79 (2) and, subject to section 4.84 (3) (c), only from

(a) the amount of tax payable under sections 4.8 to 4.83,

plus

(b) the amount of tax payable under section 4.1 minus any amounts deducted under the provisions referred to in subsection (1) of this section.

(3) The amounts that, in computing an individual's tax, may be deducted under sections 4.301, 4.72, 4.721, 4.722, 13.1, 19.1 and 21 may be deducted only in the order indicated in section 4.79 (3) and only from

(a) [Repealed 2000-15-34.]

(b) the amount of tax payable under sections 4.1 and 4.8 to 4.83 minus any amounts deducted under the provisions referred to in subsections (1) and (2) of this section.

Personal credits

4.3   (1) For the purpose of computing the tax payable under this Act for a taxation year by an individual, there may be deducted an amount determined by the formula

A × B
where
A is the appropriate percentage for the year,
B is the total of

(a) if the individual is entitled to a deduction under section 118 (1) (a) of the federal Act [spousal credit] for the year, an amount equal to the total of

(i) the basic personal amount, and

(ii) an amount determined by the formula

B.1 − (C − B.2)
where
B.1 is the spouse or common-law partner amount,
B.2 is the spouse or dependent amount, and
C is the greater of the spouse or dependent amount and the income for the year of the individual's spouse or common-law partner or, if the individual and the individual's spouse or common-law partner are living separate and apart at the end of that year by reason of a breakdown of their marriage or common-law partnership, the spouse's or common-law partner's income while married or in a common-law partnership and not so separated,

(b) if the individual is entitled to a deduction under section 118 (1) (b) of the federal Act [equivalent to spousal credit] for the year by reason of a dependent person referred to in that section, an amount equal to the total of

(i) the basic personal amount, and

(ii) an amount determined by the formula

C.1 − (D − C.2)
where
C.1 is the spouse or common-law partner amount,
C.2 is the spouse or dependent amount, and
D is the greater of the spouse or dependent amount and the dependent person's income for the year,

(c) if the individual is entitled to a deduction under section 118 (1) (c) of the federal Act [basic personal credit — single status], the basic personal amount,

(d) [Repealed 2018-4-15.]

(d.1) if the individual is entitled to a deduction under section 118 (1) (d) of the federal Act [Canada caregiver credit] by reason of a dependant described in that section, the amount determined by the formula

$19 975 − D.1
where
D.1is the greater of $15 419 and the dependant's income for the taxation year, and

(e) and (f) [Repealed 2018-4-15.]

(f.1) if the individual is entitled to a deduction in respect of a person under section 118 (1) (a) or (b) of the federal Act and would also be entitled, but for section 118 (4) (c) of that Act, to a deduction in respect of the person because of section 118 (1) (d) [Canada caregiver credit] of that Act, the amount by which the amount that would be determined under paragraph (d.1) of this subsection exceeds the amount determined under paragraph (a) or (b) of this subsection, as the case may be, in respect of the person.

(1.1) In subsection (1):

"basic personal amount" means $9 713 as adjusted under section 4.52;

"spouse or common-law partner amount" means $8 317 as adjusted under section 4.52;

"spouse or dependent amount" means $832 as adjusted under section 4.52.

(2) Section 118 (4) to (6) of the federal Act applies for the purposes of this section.

(3) [Repealed 2018-4-15.]

BC tax reduction credit

4.301   For the purpose of computing the tax payable under this Act for a taxation year by an individual, there may be deducted the amount determined by the formula

A − B
where
A is $436, and
B is 3.56% of the amount, if any, by which the individual's income for the year exceeds $19 400.

Age credit

4.31   For the purpose of computing the tax payable under this Act for a taxation year by an individual who is entitled to a deduction under section 118 (2) of the federal Act for the year, there may be deducted the amount determined by the formula

A × ($3 531 − B)
where
A is the appropriate percentage for the year, and
B is 15% of the amount, if any, by which the individual's income for the year would exceed $26 284 if no amount were included in respect of a gain from a disposition of property to which section 79 of the federal Act applies in computing that income.

Pension credit

4.32   (1) For the purpose of computing the tax payable under this Act for a taxation year by an individual who was resident in British Columbia on the last day of the taxation year and who is entitled to a deduction under section 118 (3) of the federal Act for the year, there may be deducted the amount determined by the formula

A × B
where
A is the appropriate percentage for the year, and
B is the smaller of
(a) $1 000, and
(b) the amount that is determined under paragraph (b) of the description of "B" in section 118 (3) of the federal Act and used in computing the individual's deduction under that section for the taxation year.

(2) [Repealed 2008-11-10.]

Adoption expense credit

4.33   For the purpose of computing the tax payable under this Act for a taxation year by an individual who was resident in British Columbia on the last day of the taxation year and who is entitled to a deduction under section 118.01 of the federal Act for the year, there may be deducted the amount determined by the formula

where
A is the amount deducted by the individual under section 118.01 of the federal Act for the year,
B is the appropriate percentage for the year, and
C is the appropriate percentage for the year as defined in section 248 (1) of the federal Act.

Repealed

4.34-
4.341
 
[Repealed 2017-12-18.]

Repealed

4.35   [Repealed 2017-12-20.]

Repealed

4.351   [Repealed 2017-12-22.]

BC education coaching tax credit

4.36   (1) In this section:

"coaching activity" means coaching or supervising students who are participating in an extracurricular activity or program;

"eligible coach" means

(a) a teacher, or

(b) an individual in a prescribed class of individuals;

"eligible coaching activity" means a coaching activity that meets the following criteria:

(a) the individual who is carrying out the coaching activity is an eligible coach;

(b) the students who are participating in the extracurricular activity or program to which the coaching activity relates are students of a qualifying school;

(c) the eligible coach is not paid to carry out the coaching activity;

"First Nation land" has the same meaning as in the First Nations Jurisdiction over Education in British Columbia Act (Canada);

"participating First Nation" has the same meaning as in the First Nations Jurisdiction over Education in British Columbia Act (Canada);

"qualifying school" means any of the following:

(a) a school as defined in the School Act;

(b) a francophone school as defined in the School Act;

(c) a Provincial school as defined in the School Act;

(d) an independent school as defined in the Independent School Act;

(e) a school operated on First Nation land by the government of Canada or by a participating First Nation or a Community Education Authority established by one or more participating First Nations under the First Nations Jurisdiction over Education in British Columbia Act (Canada);

(f) a school operated by the Nisa'a Nation, or a treaty first nation, under its own laws;

"teacher" means an individual who is paid to provide an educational program to students of a qualifying school.

(2) An individual is eligible for a deduction under this section for a taxation year if the individual meets the following criteria:

(a) the individual is resident in British Columbia on the last day of the taxation year;

(b) the individual carries out 10 or more hours of eligible coaching activities during the taxation year;

(c) the individual meets additional criteria that may be established by regulation;

(d) if requested by the minister, the individual provides information in the form required by the minister to establish the individual's eligibility for the deduction.

(3) For the purpose of computing the tax payable under this Act for a taxation year ending before January 1, 2018 by an individual who is eligible under subsection (2), there may be deducted an amount determined by multiplying $500 by the appropriate percentage for the year.

(4) Without limiting section 48 (1) and (2), the Lieutenant Governor in Council may make regulations as follows:

(a) prescribing classes of individuals for the purposes of paragraph (b) of the definition of "eligible coach" in subsection (1) of this section;

(b) establishing criteria for the purposes of subsection (2) (c) of this section.

(5) In making regulations under subsection (4), the Lieutenant Governor in Council may make different regulations for different classes of individuals.

(6) Regulations made under subsection (4) may be made retroactive to January 1, 2015 or a later date, and if made retroactive are deemed to have come into force on the date specified in the regulation.

Tax credit for volunteer firefighters and
search and rescue volunteers

4.37   (1) For the purpose of computing the tax payable under this Act for a taxation year by an individual who was resident in British Columbia on the last day of the taxation year and who is entitled to a deduction under section 118.06 (2) or 118.07 (2) of the federal Act for the year, there may be deducted an amount determined by multiplying $3 000 by the appropriate percentage for the year.

(2) If an amount is not included in computing the individual's income for a taxation year because of section 81 (4) of the federal Act, no deduction may be made under this section in computing the tax payable by the individual for the taxation year.

Charitable and other gifts

4.4   (1) In this section, "total gifts", in relation to an individual for a taxation year, means the amount that, in computing the individual's deduction under section 118.1 (3) of the federal Act for the year, is used in the formula in that section for the individual's total gifts for the year less any portion of that amount used in calculating a deduction claimed for a preceding taxation year by the individual or the individual's spouse or common-law partner under this section or under a provision of an income tax statute of an agreeing or non­agreeing province that is similar to this section.

(2) For the purpose of computing the tax payable under this Act for a taxation year by an individual who is entitled to a deduction under section 118.1 (3) of the federal Act for the year, there may be deducted the amount the individual claims not exceeding the amount determined by the formula

(A × B) + (C × D) + (E × F)
where
A is the appropriate percentage for the year,
B is the smaller of
(a) $200, and
(b) the individual's total gifts for the year,
C is the highest percentage specified in section 4.1 of this Act that applies in determining tax that might be payable under this Act for the year,
D is,
(a) in the case of a trust, other than a graduated rate estate or a qualified disability trust, as defined in section 122 (3) of the federal Act, the amount, if any, by which its total gifts for the year exceeds $200, and
(b) in any other case, the smaller of
(i) the amount, if any, by which the individual's total gifts for the year exceeds $200, and
(ii) the amount, if any, by which the individual's taxable income for the year exceeds the amount of $220 000 referred to in section 4.1 (1) (h), as adjusted under section 4.52,
E is 16.8%, and
F is the amount, if any, by which the individual's total gifts for the year exceed the total of
(a) $200, and
(b) the amount determined for D.

Medical expense credit

4.5   (1) For the purpose of computing the tax payable under this Act for a taxation year by an individual who is entitled to a deduction under section 118.2 (1) of the federal Act for the year, there may be deducted an amount determined by the formula

A × [(B − C) + D]
where
A is the appropriate percentage for the year,
B is the amount used in the formula in section 118.2 (1) of the federal Act for B in computing the individual's deduction under that section for the year,
C is the smaller of $1 772 and 3% of the individual's income for the taxation year referred to in the description of "C" in section 118.2 (1) of the federal Act, and
D is the total of all amounts each of which is, in respect of a dependant of the individual, the amount determined by the formula
E − F
where
E is the amount used in the formula in section 118.2 (1) of the federal Act for E in computing the individual's deduction under that section for the year, and
F is the smaller of $1 772 and 3% of the dependant's income for the taxation year referred to in the description of "F" in section 118.2 (1) of the federal Act.

(2) The same 24 or 12 month period that is used in the formula in section 118.2 (1) of the federal Act for B in computing the individual's deduction under that section for the year must be used in computing the individual's deduction under this section for the year.

(3) In this section, "dependant", in respect of the dependant of an individual for a taxation year, has the same meaning as in section 118 (6) of the federal Act, but does not include a child of the individual who has not attained the age of 18 years before the end of the taxation year.

Credit for mental or physical impairment

4.51   (1) For the purpose of computing the tax payable under this Act for a taxation year by an individual who is entitled to a deduction under section 118.3 (1) of the federal Act for the year, there may be deducted an amount determined by the formula

A × $6 126
where
A is the appropriate percentage for the year.

(2) For the purpose of computing the tax payable under this Act for a taxation year by an individual who is entitled to a deduction under section 118.3 (2) of the federal Act for the year in respect of a person referred to in that section, there may be deducted the amount, if any, by which

(a) the amount deductible under subsection (1) of this section in computing that person's tax payable under this Act for the year or that would be so deductible if the person were liable under section 2 to pay tax for the year,

exceeds

(b) the amount that would be the person's tax payable under this Act for the year if the person were liable under section 2 to pay tax for the year and if the only amounts deductible were the amounts under sections 4.3 [personal credits], 4.31 [age credit], 4.32 [pension credit], 4.33 [adoption expense credit], 4.36 [BC education coaching tax credit], 4.37 [tax credit for volunteer firefighters and search and rescue volunteers] and 4.64 [credit for EI premium and CPP contribution].

(3) For the purpose of computing the tax payable under this Act for a taxation year by an individual who has not reached 18 years of age before the end of the taxation year and who is entitled to a deduction under section 118.3 (1) of the federal Act for the year, there may be deducted an amount determined by the formula

A × ($3 574 − B)
where
A is the appropriate percentage for the year, and
B is the smaller of
(a) $3 574, and
(b) the amount, if any, by which the total of all amounts, each of which is an amount paid in the year for the care or supervision of the individual and included in computing the deductions under sections 63, 64 or 118.2 of the federal Act, exceeds $2 075.

(4) For the purpose of computing the tax payable under this Act for a taxation year by an individual who is entitled to a deduction under section 118.3 (2) of the federal Act for the year in respect of a person referred to in that section, there may be deducted an amount determined by the formula

D − (T − U)
where
D is the amount deductible under subsection (3) of this section in computing that person's tax payable under this Act for the year or that would be so deductible if the person were liable under section 2 to pay tax for the year,
T is the amount that would be the person's tax payable under this Act for the year if the person were liable under section 2 to pay tax for the year and if the only amounts deductible were the amounts under sections 4.3 [personal credits], 4.31 [age credit], 4.32 [pension credit], 4.33 [adoption expense credit], 4.36 [BC education coaching tax credit], 4.37 [tax credit for volunteer firefighters and search and rescue volunteers] and 4.64 [credit for EI premium and CPP contribution], and
U is the amount by which the amount deductible under subsection (1) of this section in computing the person's tax payable under this Act for the year, or that would be so deductible if the person were liable under section 2 to pay tax for the year, exceeds any amount deducted for the year in respect of the person under subsection (2).

(5) [Repealed 2002-19-7.]

(6) Section 118.3 (3) of the federal Act applies for the purposes of subsections (2) and (4) of this section.

Indexing

4.52   (1) In this section, "relevant provision" means the following:

(a) section 4.1 (1) [amount of tax payable];

(b) section 4.3 (1) [personal credits];

(b.1) except in respect of the 2016 taxation year, section 4.301 [BC tax reduction credit];

(c) section 4.31 [age credit];

(d) except in respect of the 2004 taxation year, the descriptions of "C" and "F" in section 4.5 (1) [medical expense credit];

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

(f) except in respect of the 2007 taxation year, the description of "deduction" in section 8.1 (3) [climate action tax credit].

(2) Subject to subsections (4.1) to (4.6), for the purpose of computing the tax payable by an individual for a taxation year, other than the 2001 taxation year, each amount expressed in dollars in a relevant provision is to be adjusted so that the amount to be used under the relevant provision for the year is the total of

(a) the amount that would, but for subsection (5) of this section, be the amount to be used under the relevant provision for the immediately preceding taxation year, and

(b) the product obtained by multiplying

(i) the amount referred to in paragraph (a) of this subsection

by

(ii) the amount, adjusted in the manner that may be prescribed and rounded to the nearest one-thousandth, or, if the result obtained is equidistant from 2 consecutive one-thousandths, to the higher one-thousandth, that is determined by the formula

where
A is the Consumer Price Index for British Columbia for the 12-month period that ended on the last September 30 before that year, and
B is the Consumer Price Index for British Columbia for the 12-month period immediately preceding the period mentioned in the description of "A".

(3) In subsection (4), "specified amount" means

(a) the amount of $30 004 referred to in section 4.1 (1) (a) and (b),

(b) the amount of $60 009 referred to in section 4.1 (1) (b) and (c),

(c) the amount of $14 047 referred to in section 4.3 (1) (d),

(d) the amount of $11 661 referred to in section 4.3 (1) (d),

(e) the amount of $2 386 referred to in section 4.3 (1) (e),

(f) the amount of $3 531 referred to in section 4.31,

(g) the amount of $26 284 referred to in section 4.31,

(h) the amount of $1 637 referred to in section 4.5,

(i) the amount of $4 293 referred to in section 4.51 (1),

(j) the amount of $2 941 referred to in section 4.51 (3), and

(k) the amount of $2 000 referred to in section 4.51 (3).

(4) For the purpose of computing the tax payable by an individual for the 2001 taxation year, each specified amount is to be adjusted so that the amount to be used for the year is the specified amount plus the product obtained by multiplying

(a) the specified amount

by

(b) the amount, adjusted and rounded as described in subsection (2) (b) (ii), that is determined by applying the formula in that subsection.

(4.1) For the purpose of computing the tax payable by an individual for the 2002 taxation year, each amount expressed in dollars in a relevant provision is to be adjusted in accordance with subsection (2), except the following:

(a) the amount of $15 670 referred to in section 4.3 (1) (d);

(b) the amount of $12 096 referred to in section 4.3 (1) (d);

(c) the amount of $9 267 referred to in section 4.3 (1) (e);

(d) the amount of $5 693 referred to in section 4.3 (1) (e);

(e) the amount of $6 126 referred to in section 4.51 (1);

(f) the amount of $3 574 in both places where it is referred to in section 4.51 (3);

(g) the amount of $2 075 referred to in section 4.51 (3).

(4.2) For the purpose of computing the tax payable by an individual for the 2010 taxation year, each amount expressed in dollars in a relevant provision is to be adjusted in accordance with subsection (2), except the following amounts wherever they are referred to in section 4.3 (1):

(a) $11 000;

(b) $9 653;

(c) $965.

(4.21) [Repealed 2013-17-25.]

(4.22) For the purpose of computing the tax payable by an individual for the 2018 taxation year, each amount expressed in dollars in a relevant provision is to be adjusted in accordance with subsection (2), except

(a) the amount of $150 000 referred to in section 4.1 (e) and (g), and

(b) the amounts of $19 975 and $15 419 referred to in section 4.3 (1) (d.1).

(4.23) For the purpose of computing the tax payable by an individual for the 2020 taxation year, each amount expressed in dollars in a relevant provision is to be adjusted in accordance with subsection (2), except the amount of $220 000 referred to in section 4.1 (1) (g) and (h).

(4.3) In subsections (4.4) to (4.6), "specified amount" means

(a) the basic personal amount as defined in subsection (1.1) of section 4.3 as if that subsection did not include the words "as adjusted under section 4.52",

(b) the spouse or common-law partner amount as defined in subsection (1.1) of section 4.3 as if that subsection did not include the words "as adjusted under section 4.52", and

(c) the spouse or dependent amount as defined in subsection (1.1) of section 4.3 as if that subsection did not include the words "as adjusted under section 4.52".

(4.4) For the purpose of computing the tax payable by an individual for the 2013 taxation year, each specified amount is to be adjusted so that the amount to be used for that year for the purpose of section 4.3 (1) is the specified amount plus the product obtained by multiplying

(a) the specified amount

by

(b) the amount, adjusted and rounded as described in subsection (2) (b) (ii), that is determined by applying the formula in that subsection in respect of the period mentioned in the description of "A" in that subsection that ends on September 30, 2012.

(4.5) For the purpose of computing the tax payable by an individual for the 2014 taxation year, each specified amount is to be adjusted so that the amount to be used for that year for the purpose of section 4.3 (1) is the total of

(a) the specified amount plus the product obtained by multiplying

(i) the specified amount

by

(ii) the amount, adjusted and rounded as described in subsection (2) (b) (ii), that is determined by applying the formula in that subsection in respect of the period mentioned in the description of "A" in that subsection that ends on September 30, 2012, and

(b) the product obtained by multiplying

(i) the total amount calculated under paragraph (a) of this subsection

by

(ii) the amount, adjusted and rounded as described in subsection (2) (b) (ii), that is determined by applying the formula in that subsection in respect of the period mentioned in the description of "A" in that subsection that ends on September 30, 2013.

(4.6) For the purpose of computing the tax payable by an individual for the 2015 and subsequent taxation years, each specified amount is to be adjusted so that the amount to be used for each year for the purpose of section 4.3 (1) is the total of

(a) the amount that would, but for subsection (5) of this section, be the amount to be used as the specified amount, as adjusted for the purpose of computing the tax payable by an individual,

(i) in the case of the 2015 taxation year, for the 2014 taxation year under subsection (4.5) of this section, and

(ii) in the case of a taxation year that begins after 2015, for the immediately preceding taxation year under this subsection, and

(b) the product obtained by multiplying

(i) the amount referred to in paragraph (a) of this subsection

by

(ii) the amount, adjusted and rounded as described in subsection (2) (b) (ii), that is determined by applying the formula in that subsection in respect of the period mentioned in the description of "A" in that subsection that ends on September 30 of the immediately preceding taxation year.

(5) If an amount to which subsection (2), (4), (4.4), (4.5) or (4.6) applies is not a multiple of one dollar when adjusted as provided in this section, it must be rounded to the nearest multiple of one dollar or, if it is equidistant from 2 such consecutive multiples, to the higher multiple.

(6) If the amount determined by applying the formula in subsection (2) (b) (ii) would, but for this subsection, be a negative amount, that amount is deemed to be nil.

(7) In this section, the Consumer Price Index for British Columbia for any 12 month period is the result arrived at by

(a) aggregating the Consumer Price Index for British Columbia, as published by Statistics Canada under the authority of the Statistics Act (Canada), adjusted in the manner that may be prescribed, for each month in that period,

(b) dividing the aggregate obtained under paragraph (a) by 12, and

(c) rounding the result obtained under paragraph (b) to the nearest one-thousandth or, if the result obtained is equidistant from 2 consecutive one-thousandths, to the higher one-thousandth.

(8) The adjustment under this section of an amount expressed in dollars in section 4.1 (1) is not affected by the following:

(a) a change to the taxation years specified or referred to in section 4.1 (1);

(b) a change to a percentage specified in section 4.1 (1).

Tuition credit

4.6   Section 118.5 of the federal Act applies for the purposes of this Act except that, in addition to any other necessary modifications required for this Act, a reference in that section to the appropriate percentage for the year is to be read as the appropriate percentage for the year as defined in section 4 of this Act.

Repealed

4.61   [Repealed 2018-4-18.]

Unused tuition and education tax credits

4.62   (1) For the purpose of computing the tax payable under this Act for a taxation year by an individual, there may be deducted the smaller of

(a) the individual's unused tuition and education tax credits at the end of the preceding taxation year, and

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

(i) section 4.3 [personal credits];

(ii) section 4.31 [age credit];

(iii) section 4.32 [pension credit];

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

(iii.2) and (iii.21) [Repealed 2017-12-30.]

(iii.3) [Repealed 2017-12-30.]

(iii.31) [Repealed 2017-12-29.]

(iii.4) section 4.36 [BC education coaching tax credit];

(iii.5) section 4.37 [tax credit for volunteer firefighters and search and rescue volunteers];

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

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

(2) Subject to subsections (3) and (4), an individual's unused tuition and education tax credits at the end of a taxation year is the amount determined by the formula

A + (B − C) − (D + E)
where
A is the individual's unused tuition and education tax credits at the end of the preceding taxation year,
B is the total of all amounts each of which may be deducted under section 4.6 [tuition credit] in computing the individual's tax payable under this Act for the year,
C is the smaller of the value of "B" and the amount that would be the individual's tax payable under this Act for the year if the only amounts deductible were the amounts under the following sections:
(a) section 4.3 [personal credits];
(b) section 4.31 [age credit];
(c) section 4.32 [pension credit];
(c.1) section 4.33 [adoption expense credit];
(c.2) and (c.21) [Repealed 2017-12-30.]
(c.3) [Repealed 2017-12-30.]
(c.31) [Repealed 2017-12-29.]
(c.4) section 4.36 [BC education coaching tax credit];
(c.5) section 4.37 [tax credit for volunteer firefighters and search and rescue volunteers];
(d) section 4.51 [credit for mental or physical impairment];
(e) section 4.64 [credit for EI premium and CPP contribution],
D is the amount that the individual may deduct under subsection (1) for the year, and
E is the tuition tax credit transferred for the year by the individual to the individual's spouse, common-law partner, parent or grandparent.

(3) For the purpose of determining the amount that may be deducted under subsection (1) in computing the tax payable for a taxation year that begins after 2006 by an individual who was not resident in British Columbia on the last day of the preceding taxation year, the individual's unused tuition and education tax credits at the end of that year are deemed to equal the amount that would be the individual's unused tuition and education tax credits at the end of that year under section 118.61 of the federal Act if the appropriate percentage applied under sections 118.5 and 118.6 of that Act in computing the individual's tuition and education tax credits had, at all material times, been the appropriate percentage as defined in section 4 of this Act instead of the appropriate percentage as defined in the federal Act.

(4) For the purpose of determining the amount that may be deducted under subsection (1) in computing the tax payable for a taxation year by an individual who was resident in British Columbia on the last day of the preceding taxation year, if the appropriate percentage for the taxation year is different from the appropriate percentage for the preceding taxation year, the individual's unused tuition and education tax credits at the end of the preceding taxation year are deemed to be the amount determined by the following formula:

where
A = the appropriate percentage for the taxation year;
B = the appropriate percentage for the preceding taxation year;
C = the amount of the individual's unused tuition and education tax credits at the end of the preceding taxation year.

(5) [Repealed 2007-2-8.]

Credit for interest on student loan

4.63   For the purpose of computing the tax payable under this Act for a taxation year by an individual who is entitled to a deduction under section 118.62 of the federal Act for the year, there may be deducted an amount determined by the formula

A × B
where
A is the appropriate percentage for the year, and
B is the amount used in the formula in section 118.62 of the federal Act in computing the individual's deduction under that section for the year.

Credit for EI premium and CPP contribution

4.64   Section 118.7 of the federal Act applies for the purposes of this Act except that a reference in that section to the appropriate percentage for the year is to be read as the appropriate percentage for the year as defined in section 4 (1) of this Act.

Transfer of unused credits to spouse or common-law partner

4.65   For the purpose of computing the tax payable under this Act for a taxation year by an individual who is entitled to a deduction under section 118.8 of the federal Act for the year, there may be deducted an amount determined by the formula

A + B − C
where
A is the tuition tax credit transferred for the year by the individual's spouse or common-law partner to the individual,
B is the total of all amounts each of which is deductible under section 4.31 [age credit], 4.32 [pension credit] or 4.51 [credit for mental or physical impairment] in computing the tax payable by the spouse or common-law partner under this Act for the year or that would be so deductible if the spouse or common-law partner were liable under section 2 to pay tax for the year, and
C is the amount, if any, by which
(a) the amount that would be the tax payable if the spouse or common-law partner were liable for tax under section 2 for the year and if the only amounts deductible were the amounts under sections 4.3 (1) (c) [basic personal credit — single status], 4.36 [BC education coaching tax credit], 4.37 [tax credit for volunteer firefighters and search and rescue volunteers], 4.62 [unused tuition and education tax credits] and 4.64 [credit for EI premium and CPP contribution]
exceeds
(b) the smaller of
(i) the total of all amounts that may be deducted under section 4.6 [tuition credit] in computing the tax payable by the spouse or common-law partner under this Act for the year or that would be so deductible if the spouse or common-law partner were liable under section 2 to pay tax for the year, and
(ii) the amount that would be the tax payable by the spouse or common-law partner under this Act for the year if the spouse or common-law partner were liable under section 2 to pay tax for the year and if the only amounts deductible were the amounts under sections 4.3 [personal credits], 4.31 [age credit], 4.32 [pension credit], 4.33 [adoption expense credit], 4.36 [BC education coaching tax credit], 4.37 [tax credit for volunteer firefighters and search and rescue volunteers], 4.51 [credit for mental or physical impairment], 4.62 [unused tuition and education tax credits] and 4.64 [credit for EI premium and CPP contribution].

Tuition tax credit transferred

4.66   In sections 4.65 [transfer of unused credits to spouse or common-law partner] and 4.67 [transfer of unused credits to parent or grandparent], the tuition tax credit transferred for a taxation year by a person to an individual is the smaller of

(a) the amount determined by the formula

A − B
where
A is the smaller of
(i) the total of all amounts that may be deducted under section 4.6 [tuition credit] in computing the person's tax payable under this Act for the year or that would be so deductible if the person were liable under section 2 to pay tax for the year, and
(ii) the amount obtained by multiplying $5 000 by the appropriate percentage, and
B is the amount that would be the person's tax payable under this Act for the year if the person were liable under section 2 to pay tax for the year and if the only amounts deductible were the amounts under sections 4.3 [personal credits], 4.31 [age credit], 4.32 [pension credit], 4.33 [adoption expense credit], 4.36 [BC education coaching tax credit], 4.37 [tax credit for volunteer firefighters and search and rescue volunteers], 4.51 [credit for mental or physical impairment], 4.62 [unused tuition and education tax credits] and 4.64 [credit for EI premium and CPP contribution], and

(b) the amount for the year that the person designates in writing for the purposes of section 4.65 [transfer of unused credits to spouse or common-law partner] or 4.67 [transfer of unused credits to parent or grandparent].

Transfer of unused credits to parent or grandparent

4.67   (1) This section applies if

(a) for a taxation year a parent or grandparent of an individual is the only person designated in writing by the individual for the year for the purpose of this section, and

(b) no other person is designated for the year for the purpose of section 118.9 of the federal Act or a provision of an income tax statute of an agreeing or non-agreeing province that is similar to this section.

(2) In the circumstances described in subsection (1), there may be deducted in computing the tax payable under this Act for the taxation year by the individual's parent or grandparent, as the case may be, the tuition tax credit transferred for the year by the individual to the parent or grandparent, as the case may be.

(3) No deduction may be made under this section in computing the tax payable by a parent or grandparent of an individual for a taxation year if the individual's spouse or common-law partner deducts an amount for the year in respect of the individual under

(a) section 4.3 [personal credits] or 4.65 [transfer of unused credits to spouse or common-law partner], or

(b) a provision of an income tax statute of an agreeing or non-agreeing province that is similar to section 4.3 or 4.65 of this Act.

Minimum tax credit

4.68   (1) For the purpose of computing the tax payable under this Act for a taxation year by an individual who is entitled to a deduction under section 120.2 of the federal Act for the year, there may be deducted the amount determined by the formula

where
A is the amount deducted by the individual under section 120.2 of the federal Act for the year,
B is the appropriate percentage for the year, and
C is the appropriate percentage for the year as defined in section 248 (1) of the federal Act.

(2) For the purposes of subsection (1) of this section, the result obtained by dividing B, as defined by that subsection, by C, as defined by that subsection, is to be rounded to the nearest one-thousandth or, if the result obtained by that division is equidistant from 2 consecutive one-thousandths, to the higher one-thousandth.

Dividend tax credit

4.69   For the purpose of computing the tax payable under this Act for a taxation year by an individual who was resident in British Columbia on the last day of the taxation year, there may be deducted the total of the following:

(a) 15% of any amount that is required by section 82 (1) (b) (i) of the federal Act to be included in computing the individual's income for the year under that Act;

(b) 43 11/19% of any amount that is required by section 82 (1) (b) (ii) of the federal Act to be included in computing the individual's income for the year under that Act.

Overseas employment tax credit

4.7   For the purpose of computing the tax payable under this Act for a taxation year by an individual who was resident in British Columbia on the last day of the taxation year and who is entitled to a deduction under section 122.3 of the federal Act for the year, there may be deducted the amount determined by the formula

where
A is the amount deducted by the individual under section 122.3 of the federal Act for the year,
B is the amount that, but for this section 4.7 and sections 4.68 [minimum tax credit], 4.71 [foreign tax credit], 4.721 [BC mining flow-through share tax credit], 4.722 [political contributions], 4.8 [minimum tax], 4.81 [CPP/QPP disability benefits for previous years], 4.82 [qualifying retroactive lump sum pension payments], 4.83 [lump sum pension payment], 4.84 [tax on split income], 13.1 [net employee investment tax credit], 19.1 [logging tax deduction] and 21 [small business venture capital tax credit], would be the individual's tax payable under this Act for the year, and
C is the amount that, but for sections 120, 120.2, 120.3, 120.31, 120.4 (2), 122.3, 126, 127, 127.4 and 127.5 of the federal Act and section 40 of the Income Tax Application Rules (Canada), would be the individual's tax payable under Part I of the federal Act for the year.

Foreign tax credit

4.71   (1) For the purpose of computing the tax payable under this Act for a taxation year by an individual, there may be deducted the aggregate of the amounts determined under subsection (2) if

(a) the individual resided in British Columbia on the last day of the taxation year, and

(b) the individual had income for the year that included income earned in a country other than Canada in respect of which non-business-income tax was paid by the individual to the government of a country other than Canada.

(c) [Repealed 2007-2-13.]

(2) The amount deductible under subsection (1), in respect of each country other than Canada, is the smaller of

(a) the amount, if any, by which any non-business-income tax paid by the individual for the taxation year to the government of the other country exceeds the amount deductible by the individual for that year under section 126 (1) of the federal Act, and

(b) that proportion of the tax otherwise payable under this Act for that taxation year that

(i) the amount, if any, by which the total of the individual's qualifying incomes exceeds the total of the individual's qualifying losses

(A) for that year, if section 114 of the federal Act does not apply, or

(B) for the part of the year throughout which the individual was resident in Canada, if section 114 of that Act applies,

from sources in the other country, on the assumption that

(C) no businesses were carried on by the individual in that country,

(D) no amount was deducted under section 91 (5) of the federal Act in computing the individual's income for the year, and

(E) the individual's income from employment in that country for the year was not from a source in that country to the extent of the smaller of the amounts determined in respect of the individual's income under paragraphs (c) and (d) of section 122.3 (1) of the federal Act,

is of

(ii) the individual's income earned in British Columbia

(A) in the year, if section 114 of the federal Act does not apply, or

(B) in the part of the year throughout which the individual was resident in Canada, if section 114 of that Act applies,

minus any amounts deducted by the individual under section 110.6 or 111 (1) (b) of the federal Act or deductible by the individual under section 110 (1) (d) to (d.3), (f), (g) or (j) of the federal Act for the year or in respect of the part of the year referred to in clause (B) of this subparagraph, as the case may be.

(2.1) In subsection (2) (b), "tax otherwise payable under this Act", in relation to an individual for a taxation year, does not include the amount of tax payable under section 4.8 [minimum tax] by the individual for the taxation year.

(3) For the purposes of subsection (2) (b) (ii) (A) of this section, if section 114 of the federal Act does not apply to the individual in respect of the taxation year, the individual's income is to be computed without reference to section 20 (1) (ww) of the federal Act.

(4) [Repealed 2003-23-20.]

(5) Under this section, the non-business-income tax paid by a taxpayer to the government of a country other than Canada in respect of the taxpayer's income for a year is the non-business-income tax paid by the taxpayer to the government of that country in respect of that year as determined under the definition of "non-business-income tax" in section 126 (7) of the federal Act.

(6) For the purposes of this section,

(a) the government of a country other than Canada includes the government of a state, province or other political subdivision of that country,

(b) if a taxpayer's income for a taxation year is in whole or in part from sources in more than one country other than Canada, subsection (2) must be read as providing for separate deductions in respect of each of the countries other than Canada,

(c) if any income from a source in a particular country would be tax-exempt income but for the fact that a portion of the income is subject to an income or profits tax imposed by the government of a country other than Canada, the portion is deemed to be income from a separate source in the particular country, and

(d) if, in computing a taxpayer's income for a taxation year from a business carried on by the taxpayer in Canada, an amount is included in respect of interest paid or payable to the taxpayer by a person resident in a country other than Canada, and the taxpayer has paid to the government of that other country a non-business-income tax for the taxation year with respect to the amount, the amount is, in applying the definition of "qualifying incomes" in subsection (7) for the purposes of subsection (2), deemed to be income from a source in that other country.

(7) In this section, "qualifying incomes", "qualifying losses" and "tax-exempt income" have the same meaning as in section 126 (7) of the federal Act.

Supplementary credit for 2000 taxation year

4.72   For the purpose of computing the tax payable under this Act for the 2000 taxation year by an individual who is resident in British Columbia on the last day of that taxation year, there may be deducted the amount determined by the formula

A × B
where
A is the appropriate percentage for the year, and
B is
(a) $600, if the individual deducts an amount in respect of a dependent spouse or other dependant under section 118 (1) (a) or (b) of the federal Act, or
(b) $300, in any other case.

BC mining flow-through share tax credit

4.721   (1) In this section:

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

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

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

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

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

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

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

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

(iii) preliminary sampling, other than specified sampling;

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

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

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

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

"individual" has the same meaning as in section 1 (1) but does not include a trust or estate;

"mineral resource" means a mineral resource referred to in paragraph (a) of the definition of "flow-through mining expenditure" in section 127 (9) of the federal Act;

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

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

(2) Subject to subsections (4) and (5), an individual may deduct from tax otherwise payable under this Act for a taxation year ending after 1997 an amount not exceeding the smaller of

(a) the BC mining flow-through share tax credit of the individual at the end of the taxation year calculated in accordance with subsection (3), and

(b) the tax otherwise payable by the individual under this Act for the taxation year.

(3) The BC mining flow-through share tax credit of an individual at the end of a taxation year is the amount, if any, by which the total of

(a) an amount equal to 20% of the total of all amounts each of which is a BC flow-through mining expenditure of the individual for the year, and

(b) an amount equal to 20% of the total of all amounts each of which is a BC flow-through mining expenditure of the individual for the 10 taxation years immediately preceding, or the 3 taxation years immediately following, the taxation year,

exceeds

(c) the total of all amounts each of which is an amount deducted under subsection (2) from the tax otherwise payable under this Act by the individual for a preceding taxation year that is in respect of BC flow-through mining expenditures of the individual for the taxation year or any of the 10 taxation years immediately preceding, or the 2 years immediately following, the taxation year.

(4) An individual who wishes to claim a tax credit under this section for a taxation year must file, with the return of income filed by the individual under section 29 for the taxation year, an application for the tax credit in the form, and containing the information, required by the Commissioner of Income Tax.

(5) In computing a tax credit under this section, an individual is not entitled to include an amount in respect of a BC flow-through mining expenditure of the individual for a taxation year unless the individual files the form containing the information required by subsection (4) in respect of that amount on or before the day that is one year after the individual's filing-due date for the taxation year that includes the effective date of a renunciation made in accordance with section 66 (12.6) of the federal Act in respect of that expenditure.

Political contributions

4.722   (1) In this section:

"candidate" means an individual who is a candidate within the meaning of section 63 of the Election Act;

"eligible political contribution" means a political contribution, as defined in the Election Act, that is made

(a) by an individual to a registered political party, a registered constituency association or a candidate, and

(b) in the form of cash or a negotiable instrument issued by the individual making the contribution, or by means of a credit card in the name of the individual making the contribution,

but does not include a political contribution that is made in contravention of the Election Act;

"financial agent" means a financial agent or deputy financial agent under Part 10 of the Election Act for a registered political party, a registered constituency association or a candidate;

"registered constituency association" means a registered constituency association as defined in the Election Act, but does not include a registered constituency association that is suspended under that Act;

"registered political party" means a registered political party as defined in the Election Act, but does not include a registered political party that is suspended under that Act.

(2) Subject to this section, there may be deducted from the tax otherwise payable by an individual under this Part for a taxation year, in respect of the aggregate of all amounts each of which is an eligible political contribution, whichever of the following is applicable:

(a) 75% of the aggregate, if the aggregate does not exceed $100;

(b) $75 plus 50% of the amount by which the aggregate exceeds $100, if the aggregate exceeds $100 and does not exceed $550;

(c) the smaller of

(i) $300 plus 33 1/3% of the amount by which the aggregate exceeds $550, and

(ii) $500.

(3) To make a deduction under subsection (2), payment of each eligible political contribution that is included in the aggregate must be proved by filing with the minister receipts that

(a) include the prescribed information,

(b) are signed by the financial agent of the person to whom or organization to which the contribution is made, and

(c) if applicable, are in the prescribed form.

(4) [Repealed 2020-18-18.]

(5) Sections 58 and 59 apply to a financial agent as if that person were carrying on business in British Columbia.

(6) Without limiting authority under any other enactment, the Commissioner of Income Tax, or a person authorized by that official, is entitled to inspect and make copies or extracts of

(a) all information filed under the Election Act with the Chief Electoral Officer, and

(b) all records in relation to political contributions required to be kept under the Election Act or made for the purpose of complying with a requirement under that Act to file information regarding political contributions with the Chief Electoral Officer.

(7) Without limiting authority under any other enactment, the Chief Electoral Officer is entitled to inspect and make copies or extracts of all information filed under this Act in relation to eligible political contributions.

(8) The Lieutenant Governor in Council may make regulations for the purposes of this section as follows:

(a) prescribing the information that must be included in a receipt;

(b) prescribing a form of receipt that must be used by registered political parties, registered constituency associations or candidates;

(c) requiring the keeping of records and return of receipts;

(d) restricting or qualifying the meaning of "eligible political contribution".

Restrictions on credits: trusts

4.73   No deduction may be made under section 4.3 [personal credits], 4.301 [BC tax reduction credit], 4.31 [age credit], 4.32 [pension credit] or 4.72 [supplementary credit for 2000 taxation year] in computing the tax payable by a trust for a taxation year.

Restrictions on credits: year of bankruptcy

4.74   Despite sections 4.3 to 4.65 and 4.67, for the purpose of computing an individual's tax payable under this Act for a taxation year that ends in a calendar year in which the individual becomes bankrupt, the individual is allowed only

(a) the deductions the individual is entitled to under sections 4.32 [pension credit], 4.33 [adoption expense credit], 4.36 [BC education coaching tax credit], 4.37 [tax credit for volunteer firefighters and search and rescue volunteers], 4.4 [charitable and other gifts], 4.5 [medical expense credit], 4.6 [tuition credit], 4.63 [credit for interest on student loan] and 4.64 [credit for EI premium and CPP contribution] that can reasonably be considered wholly applicable to the taxation year, and

(b) the part of the deductions the individual is entitled to under sections 4.3 [personal credits], 4.301 [BC tax reduction credit], 4.31 [age credit], 4.51 [credit for mental or physical impairment], 4.65 [transfer of unused credits to spouse or common-law partner], 4.67 [transfer of unused credits to parent or grandparent] and 4.72 [supplementary credit for 2000 taxation year] that can reasonably be considered applicable to the taxation year,

except that the total of the amounts so deductible for all taxation years of the individual in the calendar year under any of those provisions must not exceed the amount that would have been deductible under that provision in respect of the calendar year had the individual not become bankrupt.

Restrictions on credits: income earned outside BC

4.75   (1) Despite sections 4.3, 4.301, 4.31, 4.4 to 4.65, 4.67 and 4.68, for the purpose of computing tax payable under this Act for a taxation year by an individual who was resident in British Columbia on the last day of the taxation year and had income earned in the year outside British Columbia, the amount that may be deducted under those provisions must not exceed the portion of that amount determined by the formula

where
A is the total of the amounts the individual may deduct under those sections read without reference to this section,
B is the individual's income for the year, and
C is the individual's income earned in the taxation year outside British Columbia.

(2) Despite sections 4.3, 4.301, 4.31, 4.4 to 4.65, 4.67 and 4.68, for the purpose of computing tax payable under this Act for a taxation year by an individual who was not resident in British Columbia on the last day of the taxation year but had income earned in the year in British Columbia, the amount that may be deducted under those provisions must not exceed the portion of that amount determined by the formula

where
A is the total of the amounts the individual may deduct under those sections,
B is the individual's income earned in the taxation year in British Columbia, and
C is the individual's income for the year.

Restrictions on credits: part-year residents

4.76   (1) Despite sections 4.3 to 4.65 and 4.67 but subject to subsection (2) of this section, if an individual is resident in Canada throughout part of a taxation year and throughout another part of the year is non-resident, for the purpose of computing the individual's tax payable under this Act for the year,

(a) the amount deductible for the year under each provision of those sections in respect of the part of the year that is not included in the period or periods referred to in paragraph (b) must be computed as though that part of the year were the whole taxation year, and

(b) the individual is allowed only

(i) the deductions permitted under sections 4.32 [pension credit], 4.33 [adoption expense credit], 4.36 [BC education coaching tax credit], 4.37 [tax credit for volunteer firefighters and search and rescue volunteers], 4.4 [charitable and other gifts], 4.5 [medical expense credit], 4.6 [tuition credit], 4.63 [credit for interest on student loan] and 4.64 [credit for EI premium and CPP contribution] that can reasonably be considered wholly applicable, and

(ii) the part of the deductions permitted under sections 4.3 [personal credits], 4.301 [BC tax reduction credit], 4.31 [age credit], 4.51 [credit for mental or physical impairment], 4.65 [transfer of unused credits to spouse or common-law partner] and 4.67 [transfer of unused credits to parent or grandparent] that can reasonably be considered applicable to the period or periods in the year throughout which the individual was resident in Canada, computed as though that period or those periods were the whole taxation year.

(2) The amount deductible for the year under each provision referred to in subsection (1) (b) (i) and (ii) must not exceed the amount that would have been deductible under that provision had the individual been resident in Canada throughout the year.

Restrictions on credits: non-residents

4.77   The following provisions of this Act do not apply for the purpose of computing the tax payable under this Act for a taxation year by an individual who at no time in the taxation year is resident in Canada unless all or substantially all of the individual's income for the year is included in computing the individual's taxable income earned in Canada for the year:

(a) section 4.3 [personal credits];

(a.1) section 4.301 [BC tax reduction credit];

(b) section 4.31 [age credit];

(c) [Repealed 2004-28-14.]

(d) section 4.5 [medical expense credit];

(e) section 4.51 (2), (4) and (6) [credit for dependant with impairment and partial dependency rules];

(f) [Repealed 2018-4-25.]

(g) section 4.65 [transfer of unused credits to spouse or common-law partner];

(h) section 4.67 [transfer of unused credits to parent or grandparent];

(i) section 4.72 [supplementary credit for 2000 taxation year].

Credits in separate returns

4.78   (1) This section applies if

(a) a separate return of income with respect to an individual is filed in accordance with section 70 (2), 104 (23) or 150 (4) of the federal Act for a particular period, and

(b) another return of income with respect to the individual is filed under this Act for a period ending in the calendar year in which the particular period ends.

(2) For the purpose of computing the tax payable under this Act by an individual in a return referred to in subsection (1) (a), the only deductions allowed are those under the following provisions:

(a) section 4.3 [personal credits];

(b) section 4.31 [age credit];

(c) section 4.32 [pension credit];

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

(c.2) and (c.21) [Repealed 2017-12-43.]

(c.3) [Repealed 2017-12-43.]

(c.31) [Repealed 2017-12-44.]

(c.4) section 4.36 [BC education coaching tax credit];

(c.5) section 4.37 [tax credit for volunteer firefighters and search and rescue volunteers];

(d) section 4.4 [charitable and other gifts];

(e) section 4.5 [medical expense credit];

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

(g) section 4.6 [tuition credit];

(h) [Repealed 2018-4-25.]

(i) section 4.62 [unused tuition and education tax credits];

(j) section 4.63 [credit for interest on student loan];

(k) section 4.64 [credit for EI premium and CPP contribution];

(l) section 4.67 [transfer of unused credits to parent or grandparent];

(m) section 4.72 [supplementary credit for 2000 taxation year];

(n) section 20.1 [farmers' food donation tax credit].

(3) The total of all deductions claimed under sections 4.32 to 4.64 and 4.67 of this Act in the returns referred to in subsection (1) (a) and (b) filed in respect of the individual must not exceed the total that could be deducted under those provisions for the year with respect to the individual if no separate returns were filed under sections 70 (2), 104 (23) and 150 (4) of the federal Act.

Order of making deductions

4.79   (1) For the purposes of section 4.2 (1), the following provisions must be applied in the following order:

(a) section 4.3 [personal credits];

(b) section 4.31 [age credit];

(b.1) [Repealed 2017-12-46.]

(c) section 4.64 [credit for EI premium and CPP contribution];

(d) section 4.32 [pension credit];

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

(d.2) and (d.21) [Repealed 2017-12-47.]

(d.3) [Repealed 2017-12-47.]

(d.4) section 4.36 [BC education coaching tax credit];

(d.5) section 4.37 [tax credit for volunteer firefighters and search and rescue volunteers];

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

(f) section 4.62 [unused tuition and education tax credits];

(g) section 4.6 [tuition credit];

(h) [Repealed 2018-4-25.]

(i) section 4.67 [transfer of unused credits to parent or grandparent];

(j) section 4.65 [transfer of unused credits to spouse or common-law partner];

(k) section 4.5 [medical expense credit];

(l) section 4.4 [charitable and other gifts];

(l.1) section 20.1 [farmers' food donation tax credit];

(m) section 4.63 [credit for interest on student loan];

(n) section 4.69 [dividend tax credit];

(o) section 4.7 [overseas employment tax credit].

(2) For the purposes of section 4.2 (2), the following provisions must be applied in the following order:

(a) section 4.68 [minimum tax credit];

(b) section 4.71 [foreign tax credit].

(3) For the purposes of section 4.2 (3), the following provisions must be applied in the following order:

(a) section 4.72 [supplementary credit for 2000 taxation year];

(a.1) section 4.301 [BC tax reduction credit];

(b) section 19.1 [logging tax deduction];

(c) and (d) [Repealed 2007-2-17.]

(e) section 4.722 [political contributions];

(f) section 13.1 [net employee investment tax credit];

(f.1) section 4.721 (2) [mining flow-through share tax credit];

(g) section 21 [small business venture capital tax credit].

Minimum tax

4.8   (1) Subject to section 4.85 [apportionment of additional taxes], if tax is payable by an individual under section 127.5 of the federal Act for a taxation year, there must be added in computing the individual's tax payable under this Act for the year the amount determined by the formula

where
A is the amount determined under section 120.2 (3) of the federal Act for the individual for the year,
B is the appropriate percentage for the year, and
C is the appropriate percentage for the year as defined in section 248 (1) of the federal Act.

(2) For the purposes of subsection (1) of this section, the result obtained by dividing B, as defined by that subsection, by C, as defined by that subsection, is to be rounded to the nearest one-thousandth or, if the result obtained by that division is equidistant from 2 consecutive one-thousandths, to the higher one-thousandth.

CPP/QPP disability benefits for previous years

4.81   Subject to section 4.85 [apportionment of additional taxes], there must be added in computing an individual's tax payable under this Act for a taxation year 49.5% of the amount, if any, added under section 120.3 of the federal Act in computing the individual's tax payable under that Act for the year.

Qualifying retroactive lump sum pension payments

4.82   (1) [Repealed 2003-23-22.]

(2) Subject to section 4.85 [apportionment of additional taxes], there must be added in computing an individual's tax payable under this Act for a taxation year 49.5% of the amount, if any, added under section 120.31 of the federal Act in computing the individual's tax payable under that Act for the year.

Lump sum pension payment

4.83   Subject to section 4.85 [apportionment of additional taxes], there must be added in computing an individual's tax payable under this Act for a taxation year 49.5% of the amount, if any, of the tax payable under section 40 of the Income Tax Application Rules (Canada) by the individual for the year.

Tax on split income

4.84   (1) [Repealed 2001-3-14.]

(2) Subject to section 4.85 [apportionment of additional taxes], there must be added to a specified individual's tax payable under this Act for a taxation year an amount that is determined by multiplying the individual's split income for the year by the highest percentage specified in section 4.1 that applies in determining tax that might be payable under this Act for the year.

(3) Section 120.4 of the federal Act applies for the purposes of this Act except that, in addition to any other necessary modifications required for this Act,

(a) subsection (2) of this section applies instead of section 120.4 (2) of the federal Act,

(a.1) the reference in the description of "A" in section 120.4 (3) of the federal Act to section 118.3 of the federal Act must be read as a reference to section 4.51 [credit for mental or physical impairment] of this Act,

(b) the reference in paragraph (a) of the description of "B" in section 120.4 (3) of the federal Act to section 121 of the federal Act must be read as a reference to section 4.69 [dividend tax credit] of this Act, and

(c) the reference in paragraph (a) of the description of "B" in section 120.4 (3) of the federal Act to section 126 of the federal Act must be read as a reference to section 4.71 [foreign tax credit] of this Act.

Apportionment of additional taxes

4.85   (1) In the case of an individual who was resident in British Columbia on the last day of a taxation year and had income earned in the taxation year outside British Columbia, the tax that must be added under any of sections 4.8 to 4.84 in computing the individual's tax payable under this Act for the year is the amount determined by the formula

where
A is the amount determined for the individual under section 4.8, 4.81, 4.82, 4.83 or 4.84, as the case may be,
B is the individual's income for the year, and
C is the individual's income earned in the taxation year outside British Columbia.

(2) In the case of an individual who was not resident in British Columbia on the last day of a taxation year and had income earned in the taxation year in British Columbia, the tax that must be added under any of sections 4.8 to 4.84 in computing the individual's tax payable under this Act for the year is the amount determined by the formula

where
A is the amount determined for the individual under section 4.8, 4.81, 4.82, 4.83 or 4.84, as the case may be,
B is the individual's income earned in the taxation year in British Columbia, and
C is the individual's income for the year.

Repealed

4.86   [Repealed 2000-15-41.]

Bankrupt individuals

4.87   Section 128 (2) of the federal Act applies for the purposes of this Act except that, in addition to any other necessary modifications required for this Act, that section is to be read as if, in addition to the deductions referred to in clauses (A) to (C) of paragraph (e) (iii), that paragraph included a reference to the deductions under sections 4.301 [BC tax reduction credit] and 4.72 [supplementary credit for 2000 taxation year] of this Act.

Repealed

5-7   [Repealed 2000-15-6.]

Repealed

7.1   [Repealed RS1996-215-7.1 (8).]

Refundable sales tax credit

8   (1) In this section:

"adjusted income", in relation to an eligible individual for a taxation year, means the total of all amounts each of which would be the income for the year of the individual or the individual's qualified relation if, in computing that income, no amount

(a) were included in respect of a gain described in section 40 (3.21) [deemed capital gain under section 180.01] of the federal Act,

(b) were included in respect of any gain from a disposition of property to which section 79 [surrender of property by debtor] of the federal Act applies,

(c) were included under section 56 (6) [universal child care benefit] of the federal Act,

(d) were deductible under section 60 (y) [repayment of universal child care benefit] of the federal Act,

(e) were included under section 56 (1) (q.1) [registered disability savings plan payments] of the federal Act, and

(f) were deductible under section 60 (z) [repayment under the Canada Disability Savings Act] of the federal Act;

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

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

(b) a parent of a child, or

(c) at least 19 years of age;

"qualified relation", in relation to an individual for a taxation year, means the person who, at the end of December 31 of that year,

(a) is resident in British Columbia, and

(b) is the individual's cohabiting spouse or common-law partner, as defined in section 122.6 of the federal Act.

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

(a) dies before the end of the year,

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

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

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

(2) An eligible individual is entitled to a sales tax credit for a taxation year if the individual files, with the individual's return of income under section 29 for the taxation year, a form provided by the minister that contains the information necessary to establish the individual's claim for the sales tax credit.

(2.1) Despite subsection (2), an eligible individual is not entitled to a sales tax credit for a taxation year ending after December 31, 2009 and before January 1, 2013.

(3) The sales tax credit amount for a taxation year is the total of the following, less the excess income reduction under subsection (4):

(a) $75 in respect of the eligible individual;

(b) $75 in respect of the qualified relation of the eligible individual for that taxation year, if any.

(4) The amount determined under subsection (3) is reduced by 2% of the amount by which the adjusted income of the eligible individual claiming the sales tax credit exceeds the total of the following:

(a) $15 000 in respect of the eligible individual;

(b) $3 000 in respect of the qualified relation of the eligible individual for that taxation year, if any.

(5) For the purpose of claiming the sales tax credit, an eligible individual who is entitled to a sales tax credit for a taxation year is deemed to have paid, at the end of the taxation year on account of the individual's tax under this Act for that taxation year, an amount equal to the sales tax credit.

(6) If an individual is a qualified relation of another individual for a taxation year, only one of them may file a form under subsection (2) for the taxation year.

Climate action tax credit

8.1   (1) In this section, "eligible individual", in relation to a month specified for a taxation year, means an individual, other than a trust,

(a) who

(i) has, before the specified month, attained the age of 19 years, or

(ii) was, at any time before the specified month,

(A) a parent who resided with their child, or

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

(b) who was resident in British Columbia on the first day of the specified month and the preceding specified month.

(2) Section 122.5 of the federal Act, except the definition of "eligible individual" in subsection (1) and subsection (3), applies for the purposes of this section in relation to a month specified for the 2007 and subsequent taxation years.

(3) If, in relation to a month specified for a taxation year, an eligible individual files a return of income for the taxation year, the eligible individual is deemed to have paid during the specified month, on account of the eligible individual's tax payable under this Act for the taxation year, an amount equal to 25% of the amount, if any, determined by the following formula:

amount = total credits − deduction
where
total credits = the total of the following:
(a)the prescribed amount;
(b)the prescribed amount, if the individual has a qualified relation in relation to the specified month;
(c)the prescribed amount, if the individual has no qualified relation in relation to the specified month and is entitled to deduct an amount for the taxation year under section 118 (1) of the federal Act because of paragraph (b) of the description of "B" in that section in respect of a qualified dependant of the individual in relation to the specified month;
(d)the prescribed amount multiplied by the number of qualified dependants of the individual in relation to the specified month, other than a qualified dependant in respect of whom an amount is included under paragraph (c) in computing the total for the specified month;
deduction = 2% of the amount, if any, by which the individual's adjusted income for the taxation year in relation to the specified month exceeds,
(a)if the individual has no qualified relation or qualified dependant in relation to the specified month, $30 000, or
(b)in any other case, $35 000.

(4) In applying section 122.5 (3.1) [when advance payment applies] of the federal Act for the purposes of this section, the references to an amount expressed in dollars in that section must be read as a reference to $10.

(5) Despite section 122.5 (5) of the federal Act, as it applies for the purposes of this Act, the individual who is the eligible individual, in relation to a specified month, under section 122.5 (5) of the federal Act, as it applies for the purposes of that Act, is the individual who is the eligible individual, in relation to that specified month, for the purposes of this section.

(6) Despite section 122.5 (6) of the federal Act, as it applies for the purposes of this Act, a person who is the qualified dependant of an individual, in relation to a specified month, under section 122.5 (6) of the federal Act, as it applies for the purposes of that Act, is the qualified dependant of that individual, in relation to that specified month, for the purposes of this section.

(7) In applying section 122.5 (6.1) of the federal Act for the purposes of this section, that section must be read as including the following paragraph:

(d) an individual becomes or ceases to be resident in British Columbia.

(8) Without limiting section 48 (1) and (2), the Lieutenant Governor in Council may make regulations prescribing amounts for the purposes of subsection (3) of this section.

BC harmonized sales tax credit

8.2   (1) In this section, "eligible individual", in relation to a month specified for a taxation year, means an individual, other than a trust,

(a) who

(i) has, before the specified month, attained the age of 19 years, or

(ii) was, at any time before the specified month,

(A) a parent who resided with their child, or

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

(b) who was resident in British Columbia on the first day of the specified month and the preceding specified month.

(2) Subject to subsection (2.1), section 122.5 of the federal Act, except the definition of "eligible individual" in subsection (1) and subsection (3), applies for the purposes of this section in relation to a month specified for the 2009 to 2011 taxation years.

(2.1) Despite subsection (3), an eligible individual is not deemed to have paid an amount under subsection (3), in relation to a month specified for the 2011 taxation year, after the specified month of January 2013.

(3) If, in relation to a month specified for a taxation year, an eligible individual files a return of income for the taxation year, the eligible individual is deemed to have paid during the specified month, on account of the eligible individual's tax payable under this Act for the taxation year, an amount equal to 25% of the amount, if any, determined by the following formula:

amount = total credits − deduction
where
total credits = the total of the following:
(a)the prescribed amount;
(b)the prescribed amount, if the individual has a qualified relation in relation to the specified month;
(c)the prescribed amount multiplied by the number of qualified dependants of the individual in relation to the specified month;
deduction = 4% of the amount, if any, by which the individual's adjusted income for the
taxation year in relation to the specified month exceeds,
(a)if the individual has no qualified relation or qualified dependant in relation to the specified month, the prescribed amount, or
(b)in any other case, the prescribed amount.

(4) In applying section 122.5 (3.1) [when advance payment applies] of the federal Act for the purposes of this section, the references to an amount expressed in dollars in that section must be read as a reference to $10.

(5) Despite section 122.5 (5) of the federal Act, as it applies for the purposes of this Act, the individual who is the eligible individual, in relation to a specified month, under section 122.5 (5) of the federal Act, as it applies for the purposes of that Act, is the individual who is the eligible individual, in relation to that specified month, for the purposes of this section.

(6) Despite section 122.5 (6) of the federal Act, as it applies for the purposes of this Act, a person who is the qualified dependant of an individual, in relation to a specified month, under section 122.5 (6) of the federal Act, as it applies for the purposes of that Act, is the qualified dependant of that individual, in relation to that specified month, for the purposes of this section.

(7) In applying section 122.5 (6.1) of the federal Act for the purposes of this section, that section must be read as including the following paragraph:

(d) an individual becomes or ceases to be resident in British Columbia.

(8) Without limiting section 48 (1) and (2), the Lieutenant Governor in Council may make regulations prescribing amounts for the purposes of subsection (3) of this section.

Repealed

9-13   [Repealed 2018-12-6.]

Definitions for climate action dividend

13.01   In this section and sections 13.02 to 13.06:

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

"eligible individual", in respect of a qualified dependant, means a person who, on January 1, 2008,

(a) resides with the qualified dependant,

(b) is the parent of the qualified dependant who primarily fulfills the responsibility for the care and upbringing of the qualified dependant, and

(c) is not described in section 149 (1) (a) or (b) of the federal Act,

and for the purpose of this definition,

(d) if a qualified dependant resides with the dependant's female parent, the parent who primarily fulfills the responsibility for the care and upbringing of the qualified dependant is presumed to be the female parent,

(e) the presumption referred to in paragraph (d) does not apply in the circumstances prescribed for the purposes of paragraph (g) of the definition of "eligible individual" in section 122.6 of the federal Act, and

(f) the factors prescribed for the purposes of paragraph (h) of the definition of "eligible individual" in section 122.6 of the federal Act must be considered in determining what constitutes care and upbringing;

"individual" does not include a trust;

"qualified dependant" means a person who

(a) on December 31, 2007, has not attained the age of 18 years,

(b) is not a person in respect of whom an amount was deducted under paragraph (a) of the description of "B" in section 118 (1) of the federal Act in computing the tax payable by the person's spouse or common-law partner for the taxation year that includes December 31, 2007, and

(c) is not a person in respect of whom a special allowance under the Children's Special Allowances Act (Canada) is payable for December 2007,

but does not include a person who, on January 1, 2008, is an eligible individual in respect of another person who is a qualified dependant;

"refund of an overpayment" means a refund of an amount deemed under section 13.02 to be an overpayment.

Climate action dividend

13.02   (1) An individual is deemed to have made an overpayment on account of the individual's liability under this Act for the 2006 taxation year if

(a) on December 31, 2007, the individual

(i) is resident in British Columbia, or

(ii) is not resident in British Columbia but is in a prescribed class of individuals, and

(b) the individual

(i) is at least 18 years of age on December 31, 2007,

(ii) is less than 18 years of age on December 31, 2007 and is an eligible individual in respect of a qualified dependant, or

(iii) is in a prescribed class of individuals and meets the prescribed conditions on December 31, 2007.

(2) The amount that an individual is deemed to have overpaid under subsection (1) is

(a) in the case of an individual who is not an eligible individual in respect of a qualified dependant, $100, or

(b) in the case of an individual who is an eligible individual in respect of one or more qualified dependants, $100 plus $100 for each qualified dependant.

(3) Despite subsection (1), an individual is not deemed to have made an overpayment on account of the individual's liability under this Act for the 2006 taxation year if the individual is confined to a prison or similar institution for a period of at least 90 days that includes January 1, 2008.

Climate action dividend cannot be attached or assigned

13.03   A refund of an overpayment

(a) cannot be charged or given as security,

(b) cannot be assigned except under a prescribed Act,

(c) cannot be garnished or attached,

(d) is exempt from execution or seizure, and

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

Climate action dividend — general

13.04   (1) Despite sections 34 and 40 (1.1), the following sections of the federal Act, as they apply for the purposes of this Act, do not apply to a refund of an overpayment:

(a) section 160.1 (1) (b) [interest if excess refunded];

(b) section 164 (2) [application of refund or repayment to other debts];

(c) section 164 (3) [interest on refunds].

(2) Despite section 40 (1), and section 164 (1) (b) of the federal Act as it applies for the purposes of this Act,

(a) if an overpayment on account of an individual's liability under this Act is deemed to have arisen under section 13.02 (1) (a) (i) and (b) (i) of this Act, the minister must, without application and with all due dispatch, refund the amount of the overpayment after the minister is provided with the information and records required by the regulations, and

(b) subject to subsection (3), if an overpayment on account of an individual's liability under this Act is deemed to have arisen under section 13.02 (1) of this Act, the Provincial minister must, with all due dispatch, refund the amount of the overpayment after

(i) an application is filed in the form, and containing the information, required by the Commissioner of Income Tax, and

(ii) the Commissioner of Income Tax is provided with the information and records required by the regulations.

(3) Subsection (2) (b) does not apply if the minister has refunded the amount of the overpayment to the individual under subsection (2) (a).

(4) Despite sections 41 and 42, no objection or appeal lies in respect of the determination of the entitlement of an individual to a refund of an overpayment.

(5) Without limiting any provision of this Act or the federal Act, for the purpose of determining the entitlement of an individual to a refund of an overpayment, the Commissioner of Income Tax has powers equivalent to the federal minister under sections 231, 231.1 and 233 (1) of the federal Act, and for that purpose those sections apply.

(6) If an individual receives a refund of an overpayment to which the individual is not entitled, the individual must repay the amount to

(a) the minister, if the minister refunded the amount under subsection (2) (a), and

(b) the Provincial minister, if the Provincial minister refunded the amount under subsection (2) (b).

Climate action dividend — no further assessments, determinations or decisions

13.05   (1) Despite any other provision of this Act or the federal Act, as it applies for the purposes of this Act, an assessment, determination or decision may not be made on or after the prescribed date with respect to the entitlement of an individual to a refund of an amount deemed under section 13.02 to be an overpayment.

(2) The date prescribed for the purposes of subsection (1) may not be a date before August 1, 2010.

Climate action dividend regulations

13.06   (1) Without limiting section 48 (1) and (2), the Lieutenant Governor in Council may make regulations as follows:

(a) prescribing classes of individuals for the purposes of section 13.02 (1) (a) (ii);

(b) prescribing classes of individuals for the purposes of section 13.02 (1) (b) (iii);

(c) prescribing conditions for the purposes of section 13.02 (1) (b) (iii);

(d) prescribing Acts for the purposes of section 13.03 (b);

(e) respecting the information and records to be provided under section 13.04 (2) to the minister or Commissioner of Income Tax;

(f) prescribing a date for the purposes of section 13.05 (1).

(2) In making regulations under subsection (1) (c), the Lieutenant Governor in Council may make different regulations for any different classes of individuals prescribed for the purposes of section 13.02 (1) (b) (iii).

(3) In making regulations under subsection (1) (e), the Lieutenant Governor in Council may delegate a matter to or confer a discretion on the minister or Commissioner of Income Tax.

Application of federal provisions — interpretation for BC early childhood tax benefit

13.07   Section 122.6 of the federal Act applies for the purposes of this section and sections 13.071 to 13.09 of this Act, except that, in addition to any other necessary modifications, paragraph (a) of the definition of "qualified dependant" in section 122.6 of the federal Act is to be read as if the phrase "18 years" were "6 years".

BC early childhood tax benefit

13.071   (1) An overpayment on account of an individual's liability under this Act for a taxation year is deemed to have arisen during a month in relation to which the year is the base taxation year, if the following requirements are met:

(a) the month is after March 2015 and before October 2020;

(b) the individual has filed a return of income for that year;

(c) if the minister so demands, the individual's cohabiting spouse or common-law partner at the end of the taxation year has filed a return of income for that year;

(d) the individual was resident in British Columbia for a period that

(i) includes the first day of that month, and

(ii) began before the first day of that month.

(2) The amount of the overpayment deemed by subsection (1) to have arisen during a month in respect of an individual's liability under this Act for a taxation year is determined by the following formula:

amount = 1 {$660 × QD − [EAI × (QD × 1.32%)]}

12
where
EAI = the amount, if any, by which the individual's adjusted income for the base taxation year exceeds $100 000;
QD = the number of qualified dependants in respect of whom the individual was an eligible individual at the beginning of the month.

(3) Despite subsection (2), if an eligible individual is a shared-custody parent in respect of one or more qualified dependants at the beginning of a month, the overpayment deemed by subsection (1) to have arisen during the month is equal to the amount determined by the following formula:

amount = 1 (A + B)

2
where
A = the amount determined by the formula in subsection (2), calculated without reference to this subsection;
B = the amount determined by the formula in subsection (2), calculated without reference to this subsection and subparagraph (b) (ii) of the definition of "eligible individual" in section 122.6 of the federal Act as it applies for the purposes of this section under section 13.07 of this Act.

(4) If an amount determined by applying the formula in subsection (2) or (3) would, but for this subsection, be a negative amount, that amount is deemed to be nil.

(5) Section 122.61 (2) of the federal Act applies for the purposes of this section, except that, in addition to any other necessary modifications, section 122.61 (2) of the federal Act is to be read as if

(a) a reference to subsection (1) of section 122.61 of the federal Act were a reference to subsection (1) of this section, and

(b) the phrase "under this Part" were "under this Act".

(6) For the purposes of this section, if an individual was resident in Canada for only part of a taxation year or was not resident in Canada at any time in a taxation year, the individual's income for the year is deemed to be equal to the amount that would have been the individual's income for the year had the individual been resident in Canada throughout the year.

(7) For the purposes of this section, if an individual becomes bankrupt in a taxation year,

(a) the individual's income for the year includes the individual's income for the taxation year that begins on January 1 of the calendar year that includes the date of bankruptcy, and

(b) the total of all amounts deducted under section 63 of the federal Act in computing the individual's income for the year includes the amount deducted under that section for the individual's taxation year that begins on January 1 of the calendar year that includes the date of bankruptcy.

Application of federal provisions to BC early childhood tax benefit — rules about eligible individuals and their spouses or common-law partners

13.08   Section 122.62 (1), (2) and (4) to (8) of the federal Act applies for the purposes of this section and sections 13.07, 13.071, 13.081 and 13.09 of this Act, except that, in addition to any other necessary modifications,

(a) section 122.62 (4) of the federal Act is to be read as if the phrase "18 years" were "6 years", and

(b) section 122.62 (5) (b), (6) (b) and (7) (b) of the federal Act is to be read as if

(i) a reference to section 122.61 (1) of the federal Act were a reference to section 13.071 of this Act, and

(ii) the phrase "under this Part" were "under this Act".

BC early childhood tax benefit cannot be attached or assigned

13.081   A refund of an amount deemed by section 13.071 to be an overpayment on account of an individual's liability under this Act for a taxation year

(a) cannot be charged or given as security,

(b) cannot be assigned except under a prescribed Act,

(c) cannot be garnished or attached,

(d) is exempt from execution or seizure, and

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

BC early childhood tax benefit regulations

13.09   Without limiting section 48 (1) and (2), the Lieutenant Governor in Council may make regulations for the purposes of sections 13.07 to 13.081, including prescribing Acts for the purposes of section 13.081 (b).

Application of federal provisions — interpretation for BC child opportunity benefit

13.091   Section 122.6 of the federal Act applies, with any necessary modifications, for the purposes of this section and sections 13.092 to 13.095 of this Act.

BC child opportunity benefit

13.092   (1) An overpayment on account of an individual's liability under this Act for a taxation year is deemed to have arisen during a month in relation to which the year is the base taxation year, if the following requirements are met:

(a) the month is after September 2020;

(b) the individual is an eligible individual in respect of one or more qualified dependants at the beginning of the month;

(c) the individual has filed a return of income for that year;

(d) if the minister so demands, the individual's cohabiting spouse or common-law partner at the end of the taxation year has filed a return of income for that year;

(e) the individual was resident in British Columbia for a period that

(i) includes the first day of that month, and

(ii) began before the first day of that month.

(2) The amount of the overpayment deemed by subsection (1) to have arisen during a month in respect of an individual's liability under this Act for a taxation year is the greater of the following 2 amounts:

(a) the amount determined by the following formula:

 1 ̱ × [benefit − (EAI × 4%)]
12
where
benefit = the amount based on the number of qualified dependants in respect of whom the individual was an eligible individual at the beginning of the month, as follows:
(i)for one qualified dependant, $1 600;
(ii)for 2 qualified dependants, $2 600;
(iii)for 3 or more qualified dependants, the amount determined by the following formula:
$2 600 + [$800 × (number of qualified dependants − 2)];
EAI = the amount, if any, by which the individual's adjusted income for the base taxation year exceeds $25 000;

(b) the amount determined by the following formula:

 1 ̱ × [benefit − (EAI × 4%)]
12
where
benefit = the amount based on the number of qualified dependants in respect of whom the individual was an eligible individual at the beginning of the month, as follows:
(i)for one qualified dependant, $700;
(ii)for 2 qualified dependants, $1 380;
(iii)for 3 or more qualified dependants, the amount determined by the following formula:
$1 380 + [$660 × (number of qualified dependants − 2)];
EAI = the amount, if any, by which the individual's adjusted income for the base taxation year exceeds $80 000.

(3) Despite subsection (2), if an eligible individual is a shared-custody parent in respect of one or more qualified dependants at the beginning of a month, the amount of the overpayment deemed by subsection (1) to have arisen during the month is equal to the amount determined by the following formula:

amount =  1 ̱(A + B)
2
where
A = the amount of the overpayment determined under subsection (2), calculated without reference to this subsection;
B = the amount of the overpayment determined under subsection (2), calculated without reference to this subsection and subparagraph (b) (ii) of the definition of "eligible individual" in section 122.6 of the federal Act as it applies for the purposes of this section.

(4) If an amount determined by applying a formula in subsection (2) or (3) would, but for this subsection, be a negative amount, that amount is deemed to be nil.

(5) Section 122.61 (2) of the federal Act applies for the purposes of this section, except that, in addition to any other necessary modifications, section 122.61 (2) of the federal Act is to be read as if

(a) a reference to subsection (1) of section 122.61 of the federal Act were a reference to subsection (1) of this section, and

(b) the phrase "under this Part" were "under this Act".

(6) For the purposes of this section, if an individual was resident in Canada for only part of a taxation year or was not resident in Canada at any time in a taxation year, the individual's income for the year is deemed to be equal to the amount that would have been the individual's income for the year had the individual been resident in Canada throughout the year.

(7) For the purposes of this section, if an individual becomes bankrupt in a taxation year,

(a) the individual's income for the year includes the individual's income for the taxation year that begins on January 1 of the calendar year that includes the date of bankruptcy, and

(b) the total of all amounts deducted under section 63 of the federal Act in computing the individual's income for the year includes the amount deducted under that section for the individual's taxation year that begins on January 1 of the calendar year that includes the date of bankruptcy.

(8) The amounts expressed in dollars in the descriptions of "EAI" in subsection (2) must be adjusted so that, if the base taxation year in relation to a particular month is after 2019, the amount to be used under that subsection for the month is the total of

(a) the amount that would, but for subsection (9), be the relevant amount used under subsection (2) for the month that is one year before the particular month, and

(b) the product obtained by multiplying

(i) the amount referred to in paragraph (a)

by

(ii) the amount, adjusted in the prescribed manner and rounded to the nearest one-thousandth or, if the result obtained is equidistant from 2 consecutive one-thousandths, to the higher one-thousandth, that is determined by the following formula:

 A ̱ − 1
B
where
A = is the Consumer Price Index for British Columbia, within the meaning of section 4.52 (7), for the 12-month period that ended on September 30 of the base taxation year, and
B = is the Consumer Price Index for British Columbia for the 12-month period preceding the period referred to in the description of "A".

(9) If an amount referred to in subsection (2), adjusted as provided in subsection (8), is not a multiple of one dollar, it must be rounded to the nearest multiple of one dollar or, if it is equidistant from 2 consecutive multiples, to the higher of them.

Application of federal provisions to BC child opportunity benefit — rules about eligible individuals and their spouses or common-law partners

13.093   Section 122.62 (1), (2) and (4) to (8) of the federal Act applies for the purposes of this section and sections 13.091, 13.092, 13.094 and 13.095 of this Act, except that, in addition to any other necessary modifications, section 122.62 (5) (b), (6) (b) and (7) (b) of the federal Act is to be read as if

(a) a reference to section 122.61 (1) of the federal Act were a reference to section 13.092 of this Act, and

(b) the phrase "under this Part" were "under this Act".

BC child opportunity benefit cannot be attached or assigned

13.094   A refund of an amount deemed by section 13.092 to be an overpayment on account of an individual's liability under this Act for a taxation year

(a) cannot be charged or given as security,

(b) cannot be assigned except under a prescribed Act,

(c) cannot be garnished or attached,

(d) is exempt from execution or seizure, and

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

BC child opportunity benefit regulations

13.095   Without limiting section 48 (1) and (2), the Lieutenant Governor in Council may make regulations for the purposes of sections 13.091 to 13.094, including prescribing Acts for the purposes of section 13.094 (b).

Net employee investment tax credit

13.1   (1) In this section:

"net employee investment tax credit" means, in relation to an individual's taxation year, the aggregate of the tax credit amounts shown on all tax credit certificates issued to an individual for share purchases made during the taxation year or within 60 days after the end of the taxation year, minus the portion of that aggregate amount that was deducted from the individual's tax otherwise payable under this Act for the immediately preceding taxation year;

"tax credit certificate" means a tax credit certificate issued by the administrator under section 7 or 24 of the Employee Investment Act.

(2) There may be deducted from the tax payable by an individual under this Act in respect of a taxation year the smaller of

(a) the individual's net employee investment tax credit for that taxation year, or any smaller amount that the individual elects to deduct, and

(b) $2 000.

(3) An individual who is entitled to a deduction under this section must file, with the individual's annual return for any taxation year in respect of which a deduction is claimed under this section, a copy of the tax credit certificate.

(4) An individual is not entitled to a deduction under this section unless the individual files a return under section 29 within 3 years after the end of the taxation year to which the deduction pertains.

(5) Without limiting any provision of this or any other enactment, the Provincial minister, the federal minister, if a collection agreement is in effect, and the minister responsible for the administration of the Employee Investment Act may

(a) collect information that is relevant to a tax credit being claimed or already claimed under this section, and

(b) share with each other, in accordance with an information-sharing agreement entered into under section 65, information relevant to a tax credit being claimed or already claimed under this section.

Refunds to mutual fund trusts

13.2   (1) A mutual fund trust that is entitled to a refund under section 132 of the federal Act for a taxation year is entitled to receive, at the time and in the manner provided in section 132 of the federal Act for a refund under that section, a capital gains refund for the taxation year equal to,

(a) if the trust had no income earned in the taxation year outside British Columbia, that proportion of the refund for the year calculated under section 132 of the federal Act that

(i) the highest percentage specified in section 4.1 (1) of this Act that applies in determining tax that might be payable under this Act for the year

is of

(ii) the highest percentage specified in section 117 of the federal Act that applies in determining tax that might be payable under the federal Act for the year, or

(b) if the trust had income earned in the taxation year outside British Columbia, that proportion of the amount that would be determined under paragraph (a) of this subsection, if all income earned in the taxation year by the trust had been earned in British Columbia, that the income earned by it in British Columbia is of its income for the year.

(2) [Repealed 2000-15-42.]

(3) If a mutual fund trust is entitled to a capital gains refund under subsection (1) and is liable or about to become liable to make a payment under this Act, the minister may

(a) apply all or part of the amount that would otherwise be refunded under subsection (1) to the liability, and

(b) pay to the trust the balance, if any, of the refund not so applied.

(4) The minister must notify the mutual fund trust of an amount applied under subsection (3) to its liability to make a payment under this Act.

Division 3 — Corporate Income Tax

Definitions

13.3   In this Division:

"foreign investment income" means income described in section 126 (1) (b) (i) of the federal Act from sources in a country other than Canada;

"taxable income earned in the year in British Columbia" means the taxable income earned in the year in British Columbia by a corporation as determined in accordance with regulations made under section 124 (4) of the federal Act.

Corporation income tax

14   (1) [Repealed 2002-19-14.]

(1.1) In this section, "tax-exempt income" has the same meaning as in section 126 (7) of the federal Act.

(2) The tax payable by a corporation under this Act is 12% of the corporation's taxable income earned in the year in British Columbia.

(3) A corporation may deduct from the tax otherwise payable under this Act for the taxation year the aggregate of the amounts determined under subsection (3.1) if

(a) the corporation maintained a permanent establishment in British Columbia at any time in the taxation year,

(b) the corporation's income for the year includes foreign investment income, and

(c) the corporation has claimed a deduction under section 126 (1) of the federal Act in respect of the foreign investment income.

(3.1) The amount deductible under subsection (3), in respect of each country other than Canada, is the smaller of

(a) the amount determined by the following formula:

BCTI
12% × FII ×
TI
where
BCTI=the corporation's taxable income earned in the year in British Columbia;
FII=the corporation's foreign investment income for the year from sources in that other country;
TI=the corporation's taxable income earned in the year, and

(b) the amount determined by the following formula:

where
AD=the amount deductible by the corporation for the year under section 126 (1) of the federal Act in respect of that other country;
ATI=the corporation's taxable income earned in the year in all provinces, as determined in accordance with section 124 (4) of the federal Act;
BCTI=the corporation's taxable income earned in the year in British Columbia;
NBIT=the non-business-income tax paid by the corporation for the year to the government of that other country, as determined under the definition of "non-business-income tax" in section 126 (7) of the federal Act, except any tax that may reasonably be regarded as having been paid in respect of income from a share of the capital stock of a foreign affiliate of the corporation.

(4) [Repealed 2000-15-13.]

(5) For the purposes of this section,

(a) the government of a country other than Canada includes the government of a state, province or other political subdivision of that country,

(b) if a corporation's income for a taxation year is in whole or in part from sources in more than one country other than Canada, subsection (3.1) must be read as providing for separate deductions in respect of each of the countries other than Canada, and

(c) if any income from a source in a particular country would be tax-exempt income but for the fact that a portion of the income is subject to an income or profits tax imposed by the government of a country other than Canada, the portion is deemed to be income from a separate source in the particular country.

(5.1) In subsection (5.2), "deduction calculation change" means any amendment to this Act that effects a change to the percentage referred to in the formula in subsection (3.1) (a).

(5.2) If, during the taxation year of a corporation, there are one or more deduction calculation changes, the corporation must determine the amounts under subsection (3.1) for that taxation year as if the percentage referred to in the formula in subsection (3.1) (a) were the percentage determined in accordance with the following:

(a) the corporation must divide its taxation year into notional taxation years as follows:

(i) the first of those notional taxation years begins on the first day of the corporation's taxation year and ends on the day before the day on which the first deduction calculation change that occurs in its taxation year takes effect;

(ii) subject to subparagraph (iii), a notional taxation year will begin on each day in the corporation's taxation year on which a deduction calculation change takes effect and will end on the day before the day in its taxation year on which the next deduction calculation change takes effect;

(iii) the last notional taxation year begins on the day on which the last deduction calculation change that occurs in the corporation's taxation year takes effect and ends on the last day of its taxation year;

(b) the corporation must, for each notional taxation year within the corporation's taxation year,

(i) multiply the percentage referred to in the formula in subsection (3.1) (a), as that subsection read on the first day of that notional taxation year, by the fraction obtained by dividing the number of days in that notional taxation year by the number of days in the corporation's taxation year, and

(ii) round the result to the nearest one-thousandth of one percent or, if the result obtained is equidistant from 2 consecutive one-thousandths, to the higher one-thousandth;

(c) the corporation must add to the percentage determined under paragraph (b) for the first notional taxation year within the corporation's taxation year the percentage determined under paragraph (b) for each of the other notional taxation years within its taxation year;

(d) the total percentage determined under paragraph (c) is the percentage to be used in the formula in subsection (3.1) (a) in respect of the corporation's taxation year.

(6) If an amount is to be refunded to a corporation in respect of a taxation year, under section 131 of the federal Act, the minister must, subject to subsection (7), at the time and in the manner provided in that section, refund to the corporation an amount, in this section referred to as its "capital gains refund" for the year, equal to that proportion of the amount of the refund for the year calculated under section 131 (2) of the federal Act that

(a) the percentage referred to in subsection (2) for the year

is of

(b) the percentage referred to in paragraph (a) of the description of "A" in the definition of "refundable capital gains tax on hand" in section 131 (6) of the federal Act for the year.

(7) To calculate the capital gains refund under subsection (6) for a corporation in respect of a taxation year, if

(a) the corporation's taxable income earned in the year in British Columbia

is less than

(b) the corporation's taxable income for the year,

the refund is that proportion of the capital gains refund for the year, otherwise determined under subsection (6), that the amount determined under paragraph (a) is of the amount determined under paragraph (b).

(8) Instead of making a refund that might otherwise be made under subsection (6), the minister may, if the corporation is liable or about to become liable to make any payment under this Act, apply the amount that would otherwise be refunded to that other liability and notify the corporation of that action.

Corporate straddle provision

14.1   (1) In this section, "tax calculation change" means,

(a) in relation to a corporation to which section 16 applies,

(i) the enactment of section 16 (5),

(ii) any amendment to this Act that effects a change to any amount expressed in dollars that is referred to in section 16 (5), or

(iii) any amendment to this Act that effects a change to any rate referred to in section 16, or

(b) in relation to any other corporation, any amendment to this Act that effects a change to any rate referred to in section 14 (2).

(2) If, during the taxation year of a corporation, there are one or more tax calculation changes, the corporation must compute its tax payable for that taxation year in accordance with the following:

(a) the corporation must divide its taxation year into notional taxation years as follows:

(i) the first of those notional taxation years begins on the first day of the corporation's taxation year and ends on the day before the day on which the first tax calculation change that occurs in its taxation year takes effect;

(ii) subject to subparagraph (iii), a notional taxation year will begin on each day in the corporation's taxation year on which a tax calculation change takes effect and will end on the day before the day in its taxation year on which the next tax calculation change takes effect;

(iii) the last notional taxation year begins on the day on which the last tax calculation change that occurs in the corporation's taxation year takes effect and ends on the last day of its taxation year;

(b) the corporation must, for each notional taxation year within the corporation's taxation year, calculate, in accordance with section 14 (2) or 16, as the case may be, as that section read on the first day of that notional taxation year, the tax the corporation would be obliged to pay under section 14 (2) or 16, as the case may be, if that tax were calculated

(i) on the corporation's taxable income for the whole of its taxation year, and

(ii) as if that wording of section 14 (2) or 16 applied throughout the whole of its taxation year;

(c) the corporation must, for each notional taxation year within the corporation's taxation year, multiply the amount determined for that notional taxation year under paragraph (b) by the fraction obtained by dividing the number of days in that notional taxation year by the number of days in the corporation's taxation year;

(d) the corporation must add to the amount determined under paragraph (c) for the first notional taxation year within the corporation's taxation year the amounts determined under paragraph (c) for each of the other notional taxation years within its taxation year;

(e) the total amount determined under paragraph (d) is the tax payable by the corporation in respect of the corporation's taxation year.

Repealed

15   [Repealed 2000-15-15.]

Small business rate

16   (1) Despite section 14 (2), a corporation, other than a credit union, that was, throughout a taxation year, a Canadian-controlled private corporation must pay tax under this Part equal to the aggregate of

(a) 2% of the amount determined by the following formula:

where
A means the corporation's taxable income earned in the year in British Columbia,
B means the corporation's taxable income earned in the taxation year in all provinces, determined in accordance with section 124 (4) of the federal Act,
C means the amount that would be determined under section 125 (1) (a) of the federal Act for the corporation for the taxation year,
D means the amount determined in respect of the corporation for the taxation year under section 125 (1) (b) of the federal Act, and
E means the corporation's business limit for the taxation year as defined by subsection (5) of this section, and

(b) 12% of the amount, if any, calculated by deducting from the taxable income earned in the year in British Columbia the amount to which 2% is applied under paragraph (a) of this subsection.

(2) Despite section 14 (2), a corporation that was, throughout a taxation year, a credit union must pay tax under this Part equal to the aggregate of

(a) 2% of the amount determined by the following formula:

A × [C + (D × E)]

B
where
Ameans the corporation's taxable income earned in the year in British Columbia,
Bmeans the corporation's taxable income earned in the taxation year in all provinces, determined in accordance with section 124 (4) of the federal Act,
Cmeans the least of the amounts that would, if the corporation were not a credit union, be determined, in respect of the corporation for the taxation year, under the descriptions of "C", "D" and "E" in subsection (1) (a) of this section,
Dmeans the amount, if any, by which
(i) the amount that would be determined, in respect of the corporation for the taxation year, under the description of "D" in section 137 (3) of the federal Act if the preferred-rate amount under section 137 (4.3) of the federal Act were calculated on the basis that, for all taxation years, section 137 of the federal Act applied as if paragraph (f) of the description of "C" in section 137 (3) of the federal Act were read as "the proportion of 100% that the number of days in the year that are after 2016 is of the number of days in the year"
exceeds
(ii) the amount determined under the description of "C" in this paragraph, and
Emeans the total of all applicable amounts calculated as follows:
(i) for any taxation year, or part of a taxation year, that precedes January 1, 2016, the applicable amount for that taxation year or part is determined by dividing the number of days in the taxation year that precede January 1, 2016 by the total number of days in that taxation year;
(ii) for any part of a taxation year that is in 2016, the applicable amount for that part is determined by dividing the number of days in the taxation year that are in 2016 by the total number of days in that taxation year and multiplying the result by 0.8;
(iii) for any taxation year, or part of a taxation year, that is after December 31, 2016, the applicable amount for that taxation year or part is determined by dividing the number of days in the taxation year that are after December 31, 2016 by the total number of days in that taxation year, and
(iv) to (vi) [Repealed 2017-12-50.]

(b) 12% of the amount, if any, calculated by deducting from the taxable income earned in the year in British Columbia the amount to which 2% is applied under paragraph (a) of this subsection.

(3) [Repealed 2000-15-16.]

(4) Despite section 14 (2), a corporation that has been allowed to use section 137.1 (9) of the federal Act must pay tax under this Part equal to 2% on an amount calculated by allocating the amount of taxable income of the corporation to which section 137.1 (9) of the federal Act applies and has been allowed, on the same basis as set out in the regulations made under section 124 (4) of the federal Act.

(5) In subsection (1) of this section:

"business limit", in relation to a corporation, means, for each taxation year,

(a) subject to paragraph (b), the amount that is the corporation's business limit for the taxation year within the meaning of the federal Act, or

(b) if the amount expressed in dollars in section 125 (2) of the federal Act is not "$500 000", the amount that would be the corporation's business limit for the taxation year within the meaning of the federal Act if

(i) the amount expressed in dollars in section 125 (2) of the federal Act were read as "$500 000", and

(ii) in the case of a corporation that is associated in the taxation year with one or more other Canadian-controlled private corporations, the amount allocated to the corporation for the purposes of this section is the amount that is the same proportion of $500 000

(A) that the business limit for the corporation, determined under section 125 (3) of the federal Act, is to the amount expressed in dollars in that section, or

(B) that the amount allocated to the corporation under section 125 (4) of the federal Act is to the total amount allocated under that section;

"Canadian-controlled private corporation" does not include, in relation to a taxation year, a corporation that has in effect a valid election under section 89 (11) of the federal Act for the taxation year;

(6) A corporation to which this section and section 125 (3) of the federal Act apply must file, with the return of income filed by the corporation under section 29 for the taxation year, the forms, containing the information, required by the Commissioner of Income Tax.

(7) A corporation to which this section applies that assigns under section 125 (3.2) of the federal Act all or any portion of its business limit for a taxation year must file, with the return of income filed by the corporation under section 29 for the taxation year, the forms, containing the information, required by the Commissioner of Income Tax.

Two-year tax holiday for new small businesses

17   (1) If eligible under this section, a corporation for which taxes are payable under section 16 (1), whether calculated under that section or under section 14.1, may deduct from the tax otherwise payable under section 16 (1) for a taxation year an amount equal to the tax payable by the corporation under section 16 (1) (a) for that taxation year.

(2) Interest or penalties on tax payable under section 16 (1) (a) is not to be considered tax payable under that section for the purpose of determining the amount of a deduction under this section.

(3) In order to be eligible for a deduction under this section, a corporation must meet all the following requirements:

(a) the corporation must be incorporated after April 30, 1996 and before April 1, 2001, and must be carrying on business in British Columbia for some period between those dates;

(b) the taxation year for which the deduction is claimed must be the taxation year in which the corporation commenced business operations or the taxation year immediately following that taxation year;

(c) for the taxation year in which the deduction is claimed, the corporation must

(i) be carrying on an active business within the meaning of section 125 (7) of the federal Act, and

(ii) be allowed a deduction from federal tax under the provisions of section 125 (1) of the federal Act;

(d) the corporation must minimize its tax liability for that taxation year by claiming all allowable deductions from tax otherwise payable under section 16 (1) (a);

(e) at least 25% of the amount of the wages and salaries paid by the corporation in the taxation year for which the deduction is claimed must be paid to employees who are resident in British Columbia;

(f) the corporation must apply for a certificate of eligibility under subsection (7) within 3 years after the end of the taxation year for which the certificate would be issued;

(g) a certificate of eligibility issued under subsection (7) for the applicable taxation year must be filed with the minister;

(h) the corporation must not be ineligible under subsection (4).

(4) A corporation is not eligible for a deduction under this section if one or more of the following circumstances apply:

(a) subject to subsection (6), the business activity carried on by the corporation after incorporation is the same or mainly the same business activity as that carried on before incorporation as all or part of the business activity of a sole proprietorship, partnership, joint venture or corporation, whether registered as such or not;

(b) the corporation results from an amalgamation or merger of corporations;

(c) at any time during the taxation year for which the deduction is claimed or a previous taxation year, the corporation was associated with another corporation within the meaning of section 256 of the federal Act;

(d) at any time since its incorporation, the corporation was a beneficiary of a trust;

(e) at any time since its incorporation, the corporation carried on the active business referred to in subsection (3) (c) (i) by reason of being a member of a partnership, if any member of the partnership was not eligible for a deduction under this section for the taxation year;

(f) at any time since its incorporation, the corporation carried on the active business referred to in subsection (3) (c) (i) by reason of being a co-venturer in a joint venture, if any other co-venturer in the joint venture was not eligible for a deduction under this section for the taxation year;

(g) at any time since its incorporation, the corporation carried on the active business referred to in subsection (3) (c) (i) by reason of having acquired property from a sole proprietorship, partnership or joint venture in respect of which

(i) the corporation,

(ii) any of its shareholders, or

(iii) any person related within the meaning of section 251 of the federal Act to the corporation or its shareholders

had at any time, directly or indirectly, an interest in the proprietorship, partnership or joint venture;

(h) at any time since its incorporation, the corporation carried on the active business referred to in subsection (3) (c) (i) by reason of having acquired property from another corporation in respect of which

(i) the corporation claiming the deduction,

(ii) any of the shareholders of the corporation claiming the deduction, or

(iii) any person related within the meaning of section 251 of the federal Act to the corporation claiming the deduction or its shareholders

owned at any time, directly or indirectly, more than 10% of the issued shares of any class of the capital stock of the other corporation;

(i) as a result of a transaction or an event, or a series of transactions or events, property of a business has been transferred or has been deemed to have been transferred, either directly or indirectly, to the corporation and it is reasonable for the Commissioner of Income Tax to believe that one of the principal purposes of the transfer or deemed transfer is to enable the corporation to claim a deduction under this section that it could not otherwise claim;

(j) as a result of a disposition or deemed disposition of shares of any corporation, it is reasonable for the Commissioner of Income Tax to believe that one of the principal purposes of the disposition or deemed disposition is to enable the corporation to claim a deduction under this section that it could not otherwise claim;

(k) the certificate of eligibility of the corporation for the taxation year has been rescinded;

(l) the corporation is within a class prescribed by regulation under subsection (5).

(5) The Lieutenant Governor in Council may, by regulation, prescribe classes of corporations as ineligible for a deduction under this section.

(6) A corporation that would be eligible but for subsection (4) (a) is eligible for a deduction under this section if

(a) the same or mainly the same business activity was carried on as all or part of the business activity of a sole proprietorship or partnership for a period of 90 days or less before the date of incorporation, and

(b) the period referred to in paragraph (a) did not begin until after April 30, 1996.

(7) The Commissioner of Income Tax may issue a certificate of eligibility for a corporation for a taxation year if

(a) after the end of the taxation year for which the certificate would be issued, the corporation applies and provides information in accordance with the requirements established by the Commissioner, and

(b) the Commissioner is satisfied that the corporation is eligible for a deduction under this section for the taxation year.

(8) A separate certificate of eligibility must be obtained for each taxation year for which a deduction under this section is claimed.

(9) For the purpose of determining whether a corporation is eligible under this section, the Commissioner of Income Tax has powers equivalent to the minister under sections 230 (3), 231, 231.1, 233 (1) and 236 of the federal Act, and for this purpose those sections apply.

(10) If the Commissioner of Income Tax refuses to issue a certificate of eligibility for a corporation, the Commissioner must give notice of this refusal to the corporation together with reasons for the refusal.

(11) If, after issuing a certificate of eligibility and before the end of the period allowed for reassessment, the Commissioner of Income Tax determines on the basis of further information that a corporation was not in fact eligible for a deduction under this section, the Commissioner may rescind the certificate.

(12) If the Commissioner of Income Tax rescinds a certificate of eligibility, the Commissioner must notify the corporation of this rescission, together with reasons for the rescission.

(13) If a certificate of eligibility has been rescinded and the corporation has claimed and received a deduction under this section, the amount of the deduction, together with interest from the time referred to in section 157 (1) (b) of the federal Act, is a debt of the corporation due to the Provincial government.

(14) For the purpose of recovering a debt under subsection (13), the Commissioner of Income Tax may

(a) issue a certificate stating that the amount is due, the amount remaining unpaid, including interest, and the name of the corporation required to pay it, and

(b) file the certificate with the Supreme Court.

(15) A certificate filed under subsection (14) with the Supreme Court is of the same effect, and proceedings may be taken on it, as if it were a judgment of the Supreme Court for the recovery of a debt in the amount stated against the person named in it.

(16) A corporation that knowingly applies for a certificate of eligibility for a taxation year for which it is not eligible under this section commits an offence and is liable on conviction to a fine of up to double the amount of the deduction claimed.

Appeal of refusal or rescission of certificate of eligibility

18   (1) If the Commissioner of Income Tax refuses to issue a certificate of eligibility under section 17 (7) or rescinds a certificate of eligibility under section 17 (11), the corporation may appeal the Commissioner's decision to the Provincial minister.

(2) An appeal under subsection (1)

(a) must be made within 120 days after the date appearing on the notice under section 17 (10) or (12), as applicable, and

(b) must be made by serving a notice of appeal on the Provincial minister by mailing it by registered mail addressed to that minister at the Parliament Buildings at Victoria, British Columbia.

(3) The notice of appeal must set out clearly and fully the reasons for the appeal and the facts on which it is based.

(4) On receiving the notice of appeal, the Provincial minister must

(a) consider the notice and the information and documents on file in the office of the Commissioner of Income Tax regarding the matter,

(b) affirm the Commissioner's decision, direct the Commissioner to reconsider the matter or direct the Commissioner to issue a certificate of eligibility, and

(c) notify the appellant of the decision.

(5) A decision of the Provincial minister under subsection (4) may be appealed to the Supreme Court by way of a petition proceeding and, for these purposes, section 20 of the International Financial Business (Tax Refund) Act, as it read on August 31, 2004, applies.

(6) If directed by the Provincial minister or a court under this section, the Commissioner must issue a certificate of eligibility under section 17 (7) for the applicable taxation year.

Order of making deductions

18.1   In computing a corporation's tax payable under this Act, the following provisions must be applied in the following order:

(a) section 14 (3) [foreign tax deduction];

(b) section 19.1 [logging tax deduction];

(c) and (d) [Repealed 2007-2-21.]

(e) [Repealed 2020-18-17.]

(e.1) section 20.1 [farmers' food donation tax credit];

(f) section 21 [small business venture capital tax credit];

(g) [Repealed 2001-3-19.]

(h) section 105 [manufacturing and processing tax credit];

(i) section 99 [scientific research and experimental development tax credit].

Division 4 — Individual and Corporate Income Tax

Repealed

19   [Repealed 2007-2-22.]

Logging tax deduction

19.1   (1) In this section, "logging tax" means the tax imposed in respect of income derived from logging operations for the year in British Columbia under the Logging Tax Act.

(2) There must be deducted from the tax payable by a taxpayer under this Act for a taxation year an amount equal to 1/3 of the logging tax payable and paid by the taxpayer.

Renumbered

20   [Renumbered as 4.722 by 2020-18-18.]

Farmers' food donation tax credit

20.1   (1) In this section:

"agricultural products" means agricultural products as defined by regulation;

"eligible amount", in respect of a qualifying gift, has the same meaning as in section 248 of the federal Act;

"eligible donee" means a registered charity that

(a) is engaged in providing food to individuals in British Columbia without charge, and

(b) meets additional criteria that may be established by regulation;

"eligible taxpayer" means

(a) an individual, other than a trust or estate, who is subject to tax under section 2 (1), or

(b) a corporation that is subject to tax under section 2 (2).

(2) A gift is a qualifying gift of an eligible taxpayer for a taxation year if the following criteria are met:

(a) the gift is a gift of agricultural products produced in British Columbia by the eligible taxpayer or, if the eligible taxpayer is an individual, the spouse or common-law partner of the individual;

(b) the eligible taxpayer makes the gift to an eligible donee;

(c) the gift is made after February 16, 2016 and before January 1, 2024;

(d) if the eligible taxpayer is an individual,

(i) the individual, or the spouse or common-law partner of the individual, carries on the business of farming in British Columbia in the taxation year in which the gift is made, and

(ii) the amount of the gift is included in calculating the amount deducted by the individual under section 4.4 in computing the individual's tax payable for the taxation year;

(e) if the eligible taxpayer is a corporation,

(i) the corporation carries on the business of farming in British Columbia in the taxation year in which the gift is made, and

(ii) the amount of the gift is included in calculating the amount deducted by the corporation under section 110.1 (1) of the federal Act in computing the corporation's taxable income for the taxation year.

(3) For the purpose of computing the tax payable under this Act for a taxation year by an eligible taxpayer, there may be deducted an amount not exceeding the amount equal to 25% of the total of all amounts each of which is an eligible amount of a qualifying gift of the eligible taxpayer for the taxation year.

(4) Without limiting section 48 (1) and (2), the Lieutenant Governor in Council may make regulations as follows:

(a) defining agricultural products for the purposes of this section;

(b) establishing criteria for the purposes of the definition of "eligible donee" in subsection (1) of this section.

(5) Regulations made under subsection (4) may be made retroactive to February 17, 2016 or a later date, and if made retroactive are deemed to have come into force on the date specified in the regulation.

Small business venture capital tax credit

21   (1) In this section:

"convertible right" has the same meaning as in the Small Business Venture Capital Act;

"individual" does not include an estate or trust;

"venture capital tax credit" means the aggregate of the tax credit amounts shown on all venture capital tax credit certificates issued

(a) to a taxpayer that is a corporation, for share or convertible right purchases made during a taxation year, or

(b) to a taxpayer who is an individual, for

(i) share or convertible right purchases made during a calendar year, and

(ii) if the taxpayer makes and files an election under subsection (16), share or convertible right purchases made within the first 60 days after the end of a calendar year;

"venture capital tax credit certificate" means a tax credit certificate issued under section 20 (4) or 28.95 of the Small Business Venture Capital Act by the administrator under that Act.

(2) If, in respect of a taxation year, a taxpayer who is an individual has been issued a venture capital tax credit certificate, there must be deducted from the tax otherwise payable by that taxpayer under this Part in that taxation year the lesser of

(a) the venture capital tax credit, or

(b) $120 000.

(3) If the amount of tax otherwise payable under this Act for a taxation year by a taxpayer who is an individual is less than the amount of the deduction under subsection (2), the minister may pay to the taxpayer an amount equal to the lesser of

(a) the venture capital tax credit, or

(b) $120 000

minus the amount of tax otherwise payable under this Part in that taxation year.

(4) If, in any of the subsequent 4 taxation years, a taxpayer who is an individual has not used all of the venture capital tax credit under subsection (2) or (3), there must be deducted from the tax otherwise payable under this Part in that taxation year, an amount equal to the lesser of

(a) the unused part of the venture capital tax credit,

(b) the amount of tax that would otherwise be payable but for the unused part, or

(c) $120 000.

(5) If, in any year referred to in subsection (4), a taxpayer who is an individual has, after making the deduction under that subsection, not deducted all of the unused venture capital tax credit referred to in that subsection, the minister must pay to that taxpayer an amount equal to the lesser of

(a) the amount that was not so used before any deduction under subsection (4), or

(b) $120 000

minus the amount of tax otherwise payable under this Part in that taxation year.

(6) If an individual who has been issued a venture capital tax credit certificate dies and, at the time of his or her death, has not deducted the full amount of the credit to which he or she is entitled under subsection (2), (3), (4) or (5), the minister must pay to the estate of that deceased individual an amount equal to the amount that has not been so deducted.

(7) The maximum aggregate of all amounts that may be deducted by the taxpayer or paid to the taxpayer under subsection (2), (3), (4) or (5) in any year must not exceed $120 000.

(8) If, in respect of a taxation year, a taxpayer that is a corporation has been issued a venture capital tax credit certificate, there must be deducted from the tax otherwise payable by that taxpayer under this Part in that taxation year, an amount equal to the lesser of

(a) the amount of the venture capital tax credit, or

(b) the amount of tax that would otherwise be payable but for that credit.

(9) If, in any of the 4 subsequent taxation years, a taxpayer that is a corporation has not deducted all of the tax credit under subsection (8), there must be deducted from the tax otherwise payable by the taxpayer in that year, an amount equal to the lesser of

(a) the unused part of the venture capital tax credit that had not been so deducted, or

(b) the amount of tax, but for the unused part of the credit, that would otherwise be payable.

(10) Deductions and payments under this section in respect of venture capital tax credits are deemed to be deducted or paid, as the case may be, in the order that the certificates relating to the tax credits were issued.

(11) A taxpayer who is entitled to a deduction or payment under this section must,

(a) in the taxpayer's return of income under section 29 for any taxation year in respect of which a deduction or payment under this section applies, include the number of the venture capital tax credit certificate issued to that taxpayer, and

(b) if the taxpayer's return of income under section 29 for any taxation year in respect of which a deduction or payment under this section applies is not filed by way of electronic filing, file a copy of the venture capital tax credit certificate issued to that taxpayer with the taxpayer's return of income.

(12) A taxpayer is not entitled to a deduction or payment under this section unless the taxpayer files, within 3 years after the end of the taxation year, a return under section 29.

(13) If, under a collection agreement made under section 69, the government of Canada would permit deductions from income tax payable by taxpayers under the federal Act of amounts payable by the minister under subsection (3), (5) or (6), or will pay to taxpayers amounts payable by the minister under subsection (3), (5) or (6), the finance minister must make payments to the government of Canada for the amount of the deductions and payments that are permitted or made by the government of Canada under the agreement.

(14) If a taxpayer is permitted to make deductions or receive a payment in accordance with the agreement made under section 69, the deduction or payment is in place of payments to which the taxpayer would otherwise be entitled under subsection (3), (5) or (6), and the taxpayer is not entitled to payment under those subsections.

(15) Without limiting any provision of this or any other enactment, the Provincial minister, the federal minister, if a collection agreement is in effect, and the minister responsible for the administration of the Small Business Venture Capital Act may

(a) collect information that is relevant to a tax credit being claimed or already claimed under this section, and

(b) share with each other, in accordance with an information-sharing agreement entered into under section 65, information relevant to a tax credit being claimed or already claimed under this section.

(16) An individual taxpayer may make, and file with the minister, an election, in the form and containing the information required by the Commissioner of Income Tax, to treat a share or convertible right purchase made within the first 60 days after the end of a calendar year as having been made in the immediately preceding calendar year and not in the calendar year of purchase, in which case the purchase is deemed to have been made in that immediately preceding calendar year.

(17) A venture capital tax credit certificate that is revoked by the administrator under the Small Business Venture Capital Act is deemed never to have been issued.

Repealed

22-24   [Repealed 2000-15-22.]

Qualifying environmental trusts: tax and tax credit

25   (1) In this section, "qualifying environmental trust" means a qualifying environmental trust, as defined in section 248 (1) of the federal Act, except that a reference in that definition to "province" is to be read as a reference to British Columbia.

(2) For each taxation year, a qualifying environmental trust must pay tax equal to 12% of its income that is subject to tax under Part XII.4 of the federal Act for that taxation year, and for these purposes Part XII.4 of the federal Act applies.

(3) A taxpayer who is a beneficiary of a qualifying environmental trust may claim for a particular taxation year of the taxpayer an amount not exceeding the tax credit calculated as the total of paragraphs (a) and (b) as follows:

(a) all amounts, each of which is an amount determined by the following formula:

if
trust tax=the tax payable under subsection (2) by a qualifying environmental trust for the taxation year of the trust that ends in the particular taxation year of the taxpayer;
beneficiary's income=the amount, if any, by which
the total of all amounts in respect of the trust that, by application of section 107.3 (1) of the federal Act, are included in calculating the taxpayer's income for the particular taxation year, other than amounts included because of being a member of a partnership,
exceeds
the total of all amounts in respect of the trust that, by application of section 107.3 (1) of the federal Act, are deducted in calculating the taxpayer's income for the particular taxation year;
trust income=the trust's income for the trust's taxation year, calculated without reference to sections 104 (4) to (31) and 105 to 107 of the federal Act;

(b) in respect of each partnership of which the taxpayer was a member, the total of all amounts each of which is the amount that can reasonably be considered to be the taxpayer's share of the relevant credit in respect of the partnership.

(4) For the purpose of subsection (3) (b), the relevant credit in respect of a partnership is the amount that would, if the partnership were a person and its fiscal year end were its taxation year end, be the tax credit under subsection (3) for its taxation year that ends in the particular taxation year of the taxpayer.

(5) A taxpayer that has claimed and is eligible for a tax credit under subsection (3) for a taxation year is deemed to have paid, at the time referred to in section 156.1 (4) or 157 (1) (b) of the federal Act, as the applicable section relates to the taxation year of the taxpayer, the amount of the tax credit on account of the taxpayer's tax payable under this Act.

(6) and (7) [Repealed 2001-3-21.]

Mining exploration tax credit

25.1   (1) In this section:

"assistance" in relation to a taxpayer means an amount, other than an amount deemed to have been paid under this section, that would be included under section 12 (1) (x) of the federal Act in computing the income of the taxpayer for any taxation year if that section were read without reference to subparagraphs (v) to (vii) of that section 12 (1) (x);

"eligible taxpayer" means

(a) an individual subject to tax under section 2 (1) (a), or

(b) a corporation that is subject to tax under section 2 (2), other than a corporation all or part of whose taxable income is at any time in the taxation year exempt from tax under Part 1 of the federal Act or a corporation that, at any time in the taxation year,

(i) is exempt from tax under section 27,

(ii) is controlled directly or indirectly in any manner whatever by one or more persons all or part of whose taxable income is exempt from tax under section 27 of this Act or under Part 1 of the federal Act,

(iii) is prescribed, under the federal Act, to be a labour-sponsored venture capital corporation for the purpose of section 127.4 of that Act,

(iv) has registered an employee share ownership plan under section 2 of the Employee Investment Act,

(v) is an employee venture capital corporation registered under section 8 of the Employee Investment Act, or

(vi) is a small business venture capital corporation registered under section 3 of the Small Business Venture Capital Act;

"excluded expense" of a taxpayer for a taxation year means

(a) a Canadian development expense within the meaning of section 66.2 (5) of the federal Act, other than an expense incurred after February 28, 2015 for environmental studies or community consultations undertaken to obtain a right, licence or privilege for the purpose of determining the existence, location, extent or quality of a mineral resource in British Columbia,

(b) an expense that may reasonably be considered to be related to a mine that has come into production in reasonable commercial quantities or to a potential or actual extension of such a mine,

(c) a Canadian exploration and development overhead expense within the meaning of the federal regulations,

(d) an outlay or expense described in paragraph (j) or (l) of the definition of "Canadian exploration expense" in section 66.1 (6) of the federal Act,

(e) a cost of, or for the use of, seismic data referred to in section 66 (12.6) (b.1) of the federal Act,

(e.1) an outlay or expense incurred by the taxpayer in the course of earning income in the taxation year if any of the income is exempt income, as defined in section 248 (1) of the federal Act, or is exempt from tax under Part 1 of the federal Act,

(f) an expense incurred in drilling or completing an oil or gas well, in building a temporary access road to an oil or gas well or in preparing a site in respect of an oil or gas well,

(f.1) personal or living expenses of the taxpayer, other than travel expenses incurred by the taxpayer while away from home in the course of carrying on the activity described in paragraph (c) of the definition of "qualified mining exploration expense",

(f.2) an amount that, under an agreement described in section 66 (12.6) of the federal Act and made after July 30, 2001, is renounced in accordance with that section, in respect of an expense incurred after July 30, 2001,

(f.3) an expense, in respect of a mineral resource, that

(i) is described in paragraph (c) (ii) (A), (C) or (D) of the definition of "qualified mining exploration expense",

(ii) is incurred after the date this paragraph comes into force,

(iii) is incurred before a new mine in the mineral resource comes into production in reasonable commercial quantities, and

(iv) results in revenue or can reasonably be expected to result in revenue earned before the new mine comes into production in reasonable commercial quantities,

except to the extent that the total of all such expenses in respect of the mineral resource exceeds the total of those revenues, or

(g) [Repealed 2003-6-1.]

(h) any other outlay or expense prescribed under subsection (8);

"mineral resource" means a mineral resource within the meaning of section 248 (1) of the federal Act;

"personal or living expenses" means personal or living expenses within the meaning of section 248 (1) of the federal Act;

"qualified mining exploration expense" of a taxpayer means any expense, other than an excluded expense, that is incurred

(a) by the taxpayer,

(b) after July 31, 1998,

(c) for the purpose of determining the existence, location, extent or quality of a mineral resource in British Columbia, including

(i) such an expense incurred after February 28, 2015 for environmental studies or community consultations, including environmental studies or community consultations undertaken to obtain a right, licence or privilege for the purpose of determining the existence, location, extent or quality of a mineral resource in British Columbia, and

(ii) any expense incurred in the course of

(A) prospecting,

(B) carrying out geological, geophysical or geochemical surveys,

(C) drilling by rotary, diamond, percussion or other methods, or

(D) trenching, digging test pits and preliminary sampling, and

(iii) and (iv) [Repealed 2017-12-52.]

(d) in respect of goods or services acquired by the taxpayer that are all or substantially all provided in British Columbia,

to the extent that the expense is reasonable in the circumstances and is not an expense in relation to which a tax credit under this section has been claimed by another person.

(2) Subject to subsection (3), an eligible taxpayer may claim a mining exploration tax credit for a taxation year equal to the total of the following:

(a) the amount determined under subsection (4);

(b) the amount equal to the total of all amounts each of which is an appropriate portion determined under subsection (4.1) in respect of a partnership of which the taxpayer was a member in the taxation year as provided for in that subsection;

(c) the amount determined under subsection (4.3);

(d) the amount equal to the total of all amounts each of which is an appropriate portion determined under subsection (4.4) in respect of a partnership of which the taxpayer was a member in the taxation year as provided for in that subsection.

(3) An eligible taxpayer who has made a deduction in accordance with section 17 for a taxation year must not claim a tax credit under this section for the same taxation year.

(4) An eligible taxpayer may claim for a taxation year 20% of the amount by which

(a) the total of the qualified mining exploration expenses incurred by the taxpayer in the taxation year

exceeds

(b) all amounts of assistance that can reasonably be considered to be in respect of amounts included in the total referred to in paragraph (a) and that, at the time of filing of the taxpayer's return of income for the taxation year,

(i) the taxpayer has received or is entitled to receive or can reasonably be expected to receive,

(ii) have not been repaid under a legal obligation to do so, and

(iii) have not otherwise reduced the total referred to in paragraph (a).

(4.1) If in a taxation year an eligible taxpayer is a member of a partnership, other than a specified member as defined in section 248 (1) of the federal Act, the eligible taxpayer may claim for the taxation year the appropriate portion of 20% of the amount by which

(a) the total of the qualified mining exploration expenses incurred by the partnership for its taxation year ending in the taxation year of the taxpayer

exceeds

(b) all amounts of assistance that can reasonably be considered to be in respect of amounts included in the total referred to in paragraph (a) and that, on or before the filing-due date for the taxation year of the partnership,

(i) the partnership has received or is entitled to receive or can reasonably be expected to receive,

(ii) have not been repaid under a legal obligation to do so, and

(iii) have not otherwise reduced the total referred to in paragraph (a).

(4.2) For the purpose of determining the amount under subsection (4.1) in respect of a partnership,

(a) in subsection (1), in the definitions of "assistance", "excluded expense" and "qualified mining exploration expense", the references to "taxpayer" must be read as "partnership",

(b) in subsection (1), in the definition of "qualified mining exploration expense",

(i) the reference to "July 31, 1998" in paragraph (b) must be read as "March 31, 2003", and

(ii) the phrase "another person" must be read as "another person other than an eligible taxpayer that is a member of the partnership",

(c) the amount is determined as if

(i) the partnership were a person,

(ii) its fiscal period were its taxation year, and

(iii) its filing-due date were its filing-due date for the year if it were a corporation, and

(d) the appropriate portion is that portion that may reasonably be considered to be the eligible taxpayer's share of 20% of the amount determined under subsection (4.1).

(4.3) An eligible taxpayer may claim for a taxation year 10% of the amount by which

(a) the total of the qualified mining exploration expenses incurred in a prescribed area by the taxpayer in the taxation year

exceeds

(b) all amounts of assistance that can reasonably be considered to be in respect of amounts included in the total referred to in paragraph (a) and that, at the time of filing of the taxpayer's return of income for the taxation year,

(i) the taxpayer has received or is entitled to receive or can reasonably be expected to receive,

(ii) have not been repaid under a legal obligation to do so, and

(iii) have not otherwise reduced the total referred to in paragraph (a).

(4.4) If in a taxation year an eligible taxpayer is a member of a partnership, other than a specified member as defined in section 248 (1) of the federal Act, the eligible taxpayer may claim for the taxation year the appropriate portion of 10% of the amount by which

(a) the total of the qualified mining exploration expenses incurred in a prescribed area by the partnership for its taxation year ending in the taxation year of the taxpayer

exceeds

(b) all amounts of assistance that can reasonably be considered to be in respect of amounts included in the total referred to in paragraph (a) and that, on or before the filing-due date for the taxation year of the partnership,

(i) the partnership has received or is entitled to receive or can reasonably be expected to receive,

(ii) have not been repaid under a legal obligation to do so, and

(iii) have not otherwise reduced the total referred to in paragraph (a).

(4.5) For the purpose of determining the amount under subsection (4.3) or (4.4), in subsection (1), in the definition of "qualified mining exploration expense",

(a) the reference to "July 31, 1998" in paragraph (b) must be read as "February 20, 2007", and

(b) the references to "British Columbia" in paragraph (c) must be read as "a prescribed area".

(4.6) For the purpose of determining the amount under subsection (4.4) in respect of a partnership, the following rules apply:

(a) in subsection (1), in the definitions of "assistance", "excluded expense" and "qualified mining exploration expense", the references to "taxpayer" must be read as "partnership";

(b) in subsection (1), in the definition of "qualified mining exploration expense", the phrase "another person" must be read as "another person other than an eligible taxpayer that is a member of the partnership";

(c) the amount is determined as if

(i) the partnership were a person,

(ii) its fiscal period were its taxation year, and

(iii) its filing-due date were its filing-due date for the year if it were a corporation;

(d) the appropriate portion is that portion that may reasonably be considered to be the eligible taxpayer's share of 10% of the amount determined under subsection (4.4).

(5) A taxpayer that has claimed and is eligible for a mining exploration tax credit under this section for a taxation year is deemed to have paid, at the time referred to in section 156.1 (4) or 157 (1) (b) of the federal Act, as the applicable section relates to the taxation year for the taxpayer, the amount of the tax credit on account of the taxpayer's tax payable under this Act.

(6) A taxpayer who wishes to claim a mining exploration tax credit under this section for a taxation year must file, with the taxpayer's return of income under section 29 for the taxation year, an application for the tax credit in the form, and containing the information and records required by the Commissioner of Income Tax.

(7) A taxpayer is not entitled to a mining exploration tax credit in respect of a taxation year that ends before January 1, 2017 unless, within 36 months after the end of the taxation year, the taxpayer files the information and records required under subsection (6) with respect to the tax credit.

(7.1) A taxpayer is not entitled to a mining exploration tax credit in respect of a taxation year that ends on or after January 1, 2017 unless, within 18 months after the end of the taxation year, the taxpayer files the information and records required under subsection (6) with respect to the tax credit.

(8) The Lieutenant Governor in Council may make regulations prescribing outlays or expenses as excluded expenses for the purposes of this section.

(9) Without limiting any provision of this or any other enactment, the Provincial minister, the federal minister, if a collection agreement is in effect, and the minister responsible for the administration of the Ministry of Energy and Mines Act may

(a) collect any information that is relevant to an application for a tax credit being claimed or already claimed under this section, and

(b) share with each other, in accordance with an information-sharing agreement under section 65, any information that is relevant to an application for a tax credit being claimed or already claimed under this section.

Repealed

26   [Repealed 2000-15-22.]

Exemptions

27   (1) Subject to section 25, no tax is payable under this Act by any person for a period when the person

(a) was exempt from tax by virtue of section 149 (1) of the federal Act, or

(b) was a non resident owned investment corporation.

(2) Any definitions or descriptions in the federal Act applying to a person referred to in subsection (1) apply for the purposes of this Act unless otherwise provided.

(3) [Repealed 1999-47-12.]

Repealed

28   [Repealed 2000-15-22.]

Division 5 — Returns, Assessments and Appeals

Application of federal provisions — returns of income and assessments of tax

29   (1) The following sections of the federal Act apply for the purposes of this Act:

(a) section 150 [returns];

(b) section 150.1 (1) to (4) [electronic filing];

(c) section 151 [estimate of tax];

(d) subject to this section, section 152 (1), (1.2) and (2) to (9) [assessment].

(2) In applying section 152 (1) (b) of the federal Act for the purposes of this Act, section 152 (1) (b) must be read as follows:

(b) the amount of tax, if any, deemed by the following sections to be paid or deducted on account of the taxpayer's tax payable under this Act for the year:

(i) section 8 (5) [refundable sales tax credit];

(i.1) section 8.1 (3) [climate action tax credit];

(i.2) section 8.2 (3) [BC harmonized sales tax credit];

(ii) section 21 (10) [small business venture capital tax credit];

(iii) section 25 (5) [qualifying environmental trusts tax credit];

(iv) section 25.1 (5) [mining exploration tax credit];

(v) section 84 [film and television tax credit];

(vi) section 98 (2) [scientific research and experimental development tax credit];

(vii) section 113 [book publishing tax credit];

(viii) section 127 [training tax credits];

(ix) section 135 [interactive digital media tax credit];

(x) section 147 [home renovation tax credit for seniors and persons with disabilities].

(2.1) In applying section 152 (4) of the federal Act for the purposes of this Act, that section must be read as including the following paragraph:

(e) in respect of a taxpayer that is a corporation, the assessment, reassessment or additional assessment is made

(i) as a consequence of a taxing authority allocating or reallocating, under the Corporation Capital Tax Act, the corporation's net paid up capital for the year to a jurisdiction other than British Columbia, and

(ii) before the day that is the later of

(A) the latest day on which an assessment, reassessment or additional assessment may otherwise be made under this Act, and

(B) one year after the day that is the earlier of

(I) the day that the minister receives notification from the taxing authority of the action referred to in subparagraph (i), and

(II) the day that the minister receives notification from the corporation of the action referred to in subparagraph (i).

(2.2) In applying section 152 (4.01) of the federal Act for the purposes of this Act, the reference in that section to "paragraph (4) (a), (b) or (c)" must be read as "paragraph (4) (a), (b), (c) or (e)" and that section must be read as including the following paragraph:

(c) where paragraph (4) (e) applies to the assessment, reassessment or additional assessment, determining or redetermining the corporation's taxable income earned in the year in British Columbia, as defined in section 13.3 of this Act.

(3) In applying section 152 (4.2) of the federal Act for the purposes of this Act, section 152 (4.2) (b) must be read as follows:

(b) redetermine the amount, if any,

(i) deemed by the following sections of this Act to be paid or deducted on account of the taxpayer's tax payable under this Act for the year:

(A) section 8 (5) [refundable sales tax credit];

(A.1) section 8.1 (3) [climate action tax credit];

(A.2) section 8.2 (3) [BC harmonized sales tax credit];

(B) section 21 (10) [small business venture capital tax credit];

(C) section 25 (5) [qualifying environmental trusts tax credit];

(D) section 25.1 (5) [mining exploration tax credit];

(E) section 127 [training tax credits];

(F) section 147 [home renovation tax credit for seniors and persons with disabilities], or

(ii) deemed by section 13.071 [BC early childhood tax benefit] or 13.092 [BC child opportunity benefit] of this Act to be an overpayment on account of the taxpayer's liability under this Act for the year.

(4) In applying section 152 (6) of the federal Act for the purposes of this Act, the reference in paragraph (d) of that section to "subsection 127 (5)" must be read as a reference to section 4.721 (2), 99 (2) or 105 (1) of this Act.

Reassessment and amended return

30   (1) If a collection agreement is in effect, even though the normal reassessment period for a taxpayer in respect of a taxation year has elapsed, if the tax payable under Part I of the federal Act by the taxpayer for the year is reassessed, the federal minister must reassess or make additional assessments or assess tax, interest or penalties, as the circumstances require.

(2) [Repealed 2018-12-10.]

(3) If a taxpayer has filed the return required by section 29 for a taxation year and, within one year from the day on or before which the taxpayer was required by section 29 to file the return for that year, has amended the return by filing with the minister a form specified by the minister claiming a deduction from income under section 111 of the federal Act in respect of non-capital losses, net capital losses or restricted farm losses sustained in the taxation year immediately following that year, the minister must reassess the taxpayer's tax for the year.

Instalment payments: farmers and fishers

31   (1) Section 155 of the federal Act applies for the purposes of this Act.

(2) If a collection agreement is in effect, an individual who pays an amount in respect of a taxation year under section 155 (1) (a) or (b) of the federal Act and who is required to make a payment under section 155 of the federal Act, as it applies for the purposes of this Act, must pay an amount in respect of the year calculated under the same paragraph as it applies for the purposes of this Act.

Instalment payments: other individuals

32   (1) Section 156 of the federal Act applies for the purposes of this Act.

(2) If, because of section 156.1 (2) or (3) of the federal Act, no instalment is required to be made under section 155 or 156 of that Act by an individual for a particular taxation year, the requirements for payment of instalments under subsection (1) of this section and section 31 of this Act do not apply to the individual for that year.

(3) If a collection agreement is in effect, an individual who pays amounts in respect of a taxation year under section 156 (1) (a) or (b) of the federal Act and who is required to make payments under section 156 of the federal Act, as it applies for the purposes of this Act, must pay an amount in respect of the year calculated under the same paragraph as it applies for the purposes of this Act.

Application of federal provision — payments by corporations

33   (1) Subject to subsection (2), section 157 of the federal Act applies for the purposes of this Act.

(2) If a collection agreement is in effect, a corporation that pays amounts in respect of a taxation year calculated under section 157 (1) (a) (i), (ii) or (iii), (1.1) (a) (i), (ii) or (iii) or (1.5) (a) (i) or (ii) of the federal Act must pay amounts in respect of the year calculated under the same subparagraph of that section as it applies for the purposes of this Act.

(3) In applying section 157 (3) and (3.1) of the federal Act for the purposes of this Act, the reference in section 157 (3) (e) and (3.1) (c) to "subsection 125.4 (3), 125.5 (3), 127.1 (1) or 127.41 (3)" must be read as "section 25 (5), 25.1 (5), 84, 98, 113, 127 or 135 of this Act".

Application of federal provisions — returns, payments and interest

34   Sections 70 (2), 104 (2), 156.1 (4), 158 to 160, 160.1 (1), (1.1), (2), (2.1) and (3), 160.2 to 160.4, 161 (1) to (7), (9) and (11), 161.1 and 161.2 of the federal Act apply for the purposes of this Act.

Refund for tax credits

35   In applying section 160.1 (1) of the federal Act for the purposes of this Act, "refund" includes a refund that arises by reason of a provision of this Act

(a) that allows a taxpayer to deduct an amount from the tax payable under this Act, or

(b) that deems an amount to have been paid by a taxpayer as, or on account of, the tax payable under this Act by the taxpayer.

Amount on which instalment calculated

36   Despite section 161 (4) or (4.01) of the federal Act, as it applies for the purposes of this Act, if a collection agreement is in effect and a taxpayer is deemed under section 161 (4) or (4.01) of the federal Act to be liable to pay, in respect of his or her tax payable under Part I of the federal Act for a particular taxation year, a part or instalment calculated by reference to an amount described in section 161 (4) or (4.01) of the federal Act, the taxpayer is deemed for the purposes of section 161 (2) of the federal Act, as it applies for the purposes of this Act, to be liable to pay, in respect of his or her tax payable under this Act for the particular year, a part or instalment calculated by reference to the same paragraph of section 161 (4) or (4.01) of the federal Act, as it applies for the purposes of this Act.

Application of federal provisions — failure to file return or corporate return and failure to provide information

37   (1) Sections 162 (1) to (3), (5), (7), (7.01), (7.02), (7.2), (7.3) and (11) and 235 of the federal Act apply for the purposes of this Act.

(2) If a collection agreement is in effect, the federal minister may refrain from levying or may reduce a penalty provided for in this section if the person who is liable to the penalty is required to pay a penalty under section 162 of the federal Act in respect of the same failure.

Application of federal provisions — failure to report income, false statement or omission and burden of proof on appeal

38   (1) Section 163 (1), (1.1) and (2) of the federal Act applies for the purposes of this Act except that, in addition to any other necessary modifications, section 163 (2) of the federal Act is to be read without the references to section 120 (2) and as though

(a) a reference in section 163 (2) (c) of the federal Act to "subsection 122.61 (1)" were to section 13.071 or 13.092 of this Act, as applicable,

(a.1) in section 163 (2) (c.2) of the federal Act,

(i) the references to "subsection 122.51 (2)" were to section 127 of this Act, and

(ii) the reference to "the information provided in the return" were to "the information provided in the application filed for the year under section 128 of this Act",

(b) a reference in section 163 (2) (d) of the federal Act

(i) to "subsection 127.1 (1)" were to section 98 (2) of this Act, and

(ii) to "the information provided in the return or form filed for the year pursuant to that subsection" were to "the information in the return or form filed under section 103 of this Act",

(c) a reference in section 163 (2) (e) of the federal Act

(i) to "subsection 127.41 (3)" were to "section 25.1 (5) of this Act", and

(ii) to "the person's claim for the year under that subsection" were to "the person's application for the year filed under section 25.1 (6) of this Act",

(d) a reference in section 163 (2) (f) of the federal Act

(i) to "subsection 125.4 (3)" were to section 84 of this Act, and

(ii) to "the information provided in the return filed for the year pursuant to that subsection" were to "the information provided in the application filed for the year under section 85 (1) of this Act", and

(e) a reference in section 163 (2) (g) of the federal Act

(i) to "subsection 125.5 (3)" were to section 113 of this Act, and

(ii) to "the information provided in the return filed for the year pursuant to that subsection" were to "the information provided in the application filed for the year under section 114 of this Act".

(1.01) In applying section 163 (2) of the federal Act for the purposes of this Act, that section must be read as including the following paragraphs:

(h) the amount, if any, by which

(i) the amount that would be deemed under section 13.02 of this Act to be an overpayment on account of the person's liability under this Act for the 2006 taxation year if that amount were calculated by reference to the information provided in the application filed under section 13.04 (2) (b) (i) of this Act

exceeds

(ii) the amount that is deemed under section 13.02 of this Act to be an overpayment on account of the person's liability under this Act for the 2006 taxation year;

(i) the amount, if any, by which

(i) the amount that would be deemed under section 135 of this Act to have been paid for the year by the person if that amount were calculated by reference to the information in the return or form filed under section 138 of this Act

exceeds

(ii) the amount that is deemed under section 135 of this Act to be paid for the year by the person.

(1.1) Section 163 (2.1), (3) and (4) of the federal Act applies for the purposes of this Act.

(2) If a collection agreement is in effect, the federal minister may refrain from levying or may reduce a penalty provided for in this section if the person who is liable to the penalty is required to pay a penalty under section 163 of the federal Act in respect of the same failure or the same false statement or omission, as the case may be.

Application of federal provisions — penalty for late or deficient instalments

39   Section 163.1 of the federal Act applies for the purposes of this Act.

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

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

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

Application of federal provisions — refunds

40   (1) If the return of a taxpayer's income for a taxation year has been made within 3 years from the end of the year, the minister may

(a) before sending the notice of assessment for the year, where the taxpayer is an accredited production corporation or eligible production corporation as defined in section 79 of this Act and an amount is deemed under section 84 of this Act to have been paid on account of its tax payable under this Act for the year, refund all or part of any amount claimed in the return as an overpayment for the year, not exceeding the amount so deemed to have been paid,

(b) before sending the notice of assessment for the year, where the taxpayer is a qualifying corporation as defined in section 97 of this Act and an amount is deemed under section 98 (2) of this Act to have been paid on account of its tax payable under this Act for the year, refund all or part of any amount claimed in the return as an overpayment for the year, not exceeding the amount so deemed to have been paid,

(b.1) before sending the notice of assessment for the year, where the taxpayer is a corporation and an amount is deemed under section 135 of this Act to have been paid on account of its tax payable under this Act for the year, refund all or part of any amount claimed in the return as an overpayment for the year, not exceeding the amount so deemed to have been paid, and

(c) on or after sending the notice of assessment for the year, refund, without application, any overpayment for the year, to the extent that the overpayment was not refunded under paragraphs (a) to (b.1).

(1.1) Section 164 (1) (b) to (1.31) and (1.5) to (7) of the federal Act applies for the purposes of this Act.

(2) If a collection agreement is in effect and by reason of a decision referred to in section 164 (4.1) of the federal Act a repayment of tax, interest or penalties under that Act for a taxation year is made to a taxpayer or any security accepted under that Act for such tax, interest or penalties is surrendered to the taxpayer, section 164 (4.1) of the federal Act, as it applies for the purposes of this Act, applies to any overpayment of tax, interest or penalties under this Act for the year that arises by reason of the decision.

Application of federal provisions — objections to assessments and extension of time

41   Sections 165, 166.1 and 166.2 of the federal Act apply for the purposes of this Act.

Appeal by taxpayer

42   (1) Section 169 of the federal Act applies for the purposes of this Act.

(2) Subject to subsection (2.1), an appeal from an assessment under this Act may be taken in respect of any question relating,

(a) in the case of an individual, to the determination of

(i) the individual's residency for the purposes of section 2, 13.071, 13.092 or any other provision of this Act,

(ii) [Repealed 2018-12-13.]

(ii.1) the amount that, under section 8.1 (3), the individual is deemed to have paid on account of the individual's tax payable under this Act for a taxation year,

(ii.2) the amount that, under section 8.2 (3), the individual is deemed to have paid on account of the individual's tax payable under this Act for a taxation year, or

(iii) and (iii.1) [Repealed 2018-12-13.]

(iv) the individual's income earned in the taxation year in British Columbia as defined in section 4 (1),

(v) [Repealed 2000-15-28.]

(b) in the case of a corporation, to the determination of

(i) its taxable income earned in the year in British Columbia as defined in section 13.3, or

(ii) [Repealed 2000-15-28.]

(iii) the amount of the tax credit for a taxation year that, under section 84, 98, 113 or 135, the corporation is deemed to have paid on account of its tax payable for that year under this Act, and

(c) in the case of an individual or a corporation, to the determination of

(i) [Repealed 2000-15-28.]

(i.1) the amount of tax payable for a taxation year by the taxpayer under this Act,

(i.2) the amount of a deduction from tax payable by a taxpayer under this Act,

(ii) the amount of the tax credit for a taxation year that, under section 25.1, the taxpayer is deemed to have paid on account of the tax payable by that taxpayer for that taxation year under this Act, or

(iii) the amount of the tax credit for a taxation year that, under section 127, the taxpayer is deemed to have paid on account of the tax payable by that taxpayer for that taxation year under this Act.

(2.1) No appeal from an assessment under this Act lies in respect of

(a) the computation of taxable income, or

(b) any other matter in respect of which an appeal lies under the federal Act.

(3) An appeal to the court must be instituted by

(a) serving on the minister a notice of appeal in duplicate in the form specified by the minister, and

(b) filing a copy of the notice of appeal with the registrar of the court or the local registrar of the court for the county or district in which the taxpayer resides.

(4) A notice of appeal must be served on the minister by sending it by registered mail addressed to the deputy head.

(5) The taxpayer appealing must set out in the notice of appeal a statement of the allegations of fact, the statutory provisions and the reasons that the taxpayer intends to submit in support of his or her appeal.

(6) The taxpayer appealing must pay the court registry the prescribed fee on filing the copy of the notice of appeal.

Reply

43   (1) The minister must, within 60 days from the day the notice of appeal is received, or within a further time as the court may either before or after the expiration of that time allow, serve on the appellant and file in the court a reply to the notice of appeal admitting or denying the facts alleged and containing a statement of the further allegations of fact and of the statutory provisions and reasons the minister intends to rely on.

(2) The court may, in its discretion, strike out a notice of appeal or any part of it for failure to comply with section 42 (5) and may permit an amendment to be made to a notice of appeal or a new notice of appeal to be substituted for the one struck out.

(3) The court may, in its discretion,

(a) strike out any part of a reply for failure to comply with this section or permit the amendment of a reply, and

(b) strike out a reply for failure to comply with this section and order a new reply to be filed within a time to be set by the order.

(4) If a notice of appeal is struck out for failure to comply with section 42 (5) and a new notice of appeal is not filed as and when permitted by the court, the court may, in its discretion, dispose of the appeal by dismissing it.

(5) If a reply is not filed as required by this section or is struck out under this section and a new reply is not filed as ordered by the court within the time ordered, the court may dispose of the appeal without notice to any party or after a hearing on the basis that the allegations of fact in the notice of appeal are true.

Procedure

44   (1) On the filing of the material referred to in sections 42 and 43, the matter is deemed to be an action in the court and, unless the court otherwise orders, ready for hearing.

(2) Any fact or statutory provision not set out in the notice of appeal or reply may be pleaded or referred to in the manner and on the terms the court directs.

Application of federal provisions — irregularities, extension of time and private hearings

45   Sections 166, 167 and 179 of the federal Act apply for the purposes of this Act.

Court practice

46   (1) Except as provided in the regulations, the practice and procedure of the court apply to each matter deemed to be an action under section 44.

(2) A judgment or order made in the action may be enforced as a judgment or order made in an action in the court.

Part 2 — Administration and Enforcement

Application of federal provisions — administration, interest, garnishment and proceedings to collect

47   (1) Sections 220 (2) to (7), 221.1, 224, 225.1 and 225.2 of the federal Act apply for the purposes of this Act.

(2) Subject to section 69, the Provincial minister must administer and enforce this Act.

(3) Despite subsection (1), the time periods set out in sections 4.721 (5), 25.1 (7) and (7.1), 85 (2) and (3), 103 (2), 110 (2), 114 (2), 128 (2) and 138 (2) of this Act must not be extended.

Power to make regulations

48   (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 that provide for

(a) anything that, by this Act, is to be prescribed, determined or regulated by regulation, and

(b) the circumstances in which and extent to which, in any case of doubt, the federal regulations apply.

(3) Except to the extent that they are inconsistent with any regulations made under subsection (1) or (2) or are expressed by any regulation made under subsection (1) or (2) to be inapplicable, the federal regulations made under section 221 (1) of the federal Act apply, with the necessary changes and so far as applicable, for the purposes of this Act with respect to all matters enumerated in that subsection.

(4) No regulation made under this Act or under the federal Act if it is applicable, with the necessary changes, has effect for the purposes of this Act until it has been published in the British Columbia Gazette or the Canada Gazette, as the case may be, but when published, a regulation is effective, if it so provides, with reference to a period before it was published.

(5) Subject to subsection (6), a regulation made under this Act may be made retroactive to January 1, 2008 or a later date, and if made retroactive is deemed to have come into force on the specified date.

(6) Subsection (5) does not apply to

(a) a regulation that may be made retroactive under another provision of this Act,

(b) a regulation that may be made under section 4.722 (8), 8.1 (8), 8.2 (8) or 96 (2.1), (2.2) or (2.3).

Application of federal provisions — debts to Her Majesty

49   (1) Section 222 of the federal Act applies for the purposes of this Act.

(2) In applying section 222 (5) (c) of the federal Act for the purposes of this Act, the reference in that section to "paragraph 227 (10) (a)" must be read as a reference to section 56 (2) (b) of this Act.

Application of federal provisions — certificates

50   (1) Section 223 (2) to (4) of the federal Act applies for the purposes of this Act.

(2) If a collection agreement is in effect, subsection (1) does not apply, but the federal minister may proceed under section 223 of the federal Act for the purpose of collecting any amount payable under this Act by a taxpayer.

Warrant

51   (1) The minister may issue a warrant, directed to the sheriff of any county or district in which any property of the taxpayer is located, for the amount of the tax, interest and penalty, or any of them, owing by the taxpayer, together with interest from the date of the issue of the warrant and the costs, expenses and poundage of the sheriff.

(2) A warrant issued under subsection (1) has the same effect as a writ of execution issued out of the court.

Application of federal provisions — acquisition of debtor's property

52   Section 224.2 of the federal Act applies for the purposes of this Act.

Application of federal provisions — payment of money seized from tax debtor

53   Section 224.3 of the federal Act applies for the purposes of this Act.

Application of federal provisions — seizure of goods

54   Section 225 of the federal Act applies for the purposes of this Act.

Application of federal provisions — taxpayer leaving Canada or defaulting

55   Section 226 of the federal Act applies for the purposes of this Act.

Application of federal provisions — withholding taxes

56   (1) Sections 153 (1) to (3.1) and 227 (1) to (5.2), (8), (8.2) to (9), (9.2), (9.4), (9.5), (10.2), (11) to (13) and (15) of the federal Act apply for the purposes of this Act.

(2) The minister may assess

(a) any person for any amount that has been deducted or withheld by that person under this Act or a regulation or under a provision of the federal Act or of the federal regulations that applies for the purposes of this Act, and

(b) any person for any amount payable by that person under section 224 (4) or (4.1), 227 (8), (8.3) to (9), (9.2), (9.4) or (9.5), 227.1 or 235 of the federal Act, as they apply for the purposes of this Act.

(3) If the minister sends a notice of assessment to a person referred to in subsection (2), sections 29 and 34 to 46 are applicable.

Application of federal provisions — liability of directors

57   Section 227.1 of the federal Act applies for the purposes of this Act.

Books and records

58   (1) A person carrying on business in British Columbia and a person who is required under this Act to pay or collect taxes or other amounts must keep records and books of account, including an annual inventory kept in the manner specified by the minister, at the person's place of business or residence in Canada or at any other place that may be designated by the minister, in the form and including the information that will enable the taxes payable under this Act or the taxes or other amounts that should have been deducted, withheld or collected to be determined.

(2) Section 230 (2.1), (3), (4), (5), (6), (7) and (8) of the federal Act applies for the purposes of this Act.

Application of federal provisions — inspections, privilege, information returns and corporate execution

59   Sections 231 to 231.5, 231.7, 232, 233 (1) and 236 of the federal Act apply for the purposes of this Act.

Repealed

60   [Repealed 2015-8-34.]

Offence and penalty

61   (1) A person who fails to file a return as and when required by or under this Act or a regulation, or by or under a provision of the federal Act or of the federal regulations, as that provision applies for the purposes of this Act, or who fails to comply with any of sections 153 (1), 227 (5), 230 (3), (4) and (6), 231 to 231.5 and 232 of the federal Act, as they apply for the purposes of this Act, is guilty of an offence and, in addition to any penalty otherwise provided, is liable on summary conviction to

(a) a fine of at least $1 000 and not exceeding $25 000, or

(b) both the fine described in paragraph (a) and imprisonment for a term not exceeding 12 months.

(2) Section 238 (2) of the federal Act applies for the purposes of this Act.

(3) If a person is convicted under this section for failure to comply with a provision of this Act or a regulation or a provision of the federal Act or of the federal regulations that applies for the purposes of this Act, the person is not liable to a penalty under any of section 162 (1) to (3), (5), (7), (7.01), (7.02), (7.2), (7.3) or (11) or 227 (8), (9) or (9.5) of the federal Act, as those subsections apply for the purposes of this Act, for the same failure unless the person was assessed for that penalty or that penalty was demanded from the person before the information or complaint giving rise to the conviction was laid or made.

Application of federal provisions — further offences

62   Section 239 (1) and (1.1) of the federal Act applies for the purposes of this Act.

Powers of federal minister

63   If a collection agreement is entered into and proceedings under section 238 or 239 of the federal Act are taken against any person, the federal minister may take or refrain from any action against the person contemplated by section 61 or 62 of this Act, as the case may be.

Communication of information and related offences

64   (1) In this section:

"authorized person" means a person who is engaged or employed, or who was formerly engaged or employed, by or on behalf of the government of British Columbia to assist in carrying out the provisions of this Act;

"designated person" has the same meaning as in section 241 (10) of the federal Act;

"official" means any person

(a) who is employed in the service of, who occupies a position of responsibility in the service of, or who is engaged by or on behalf of the government of British Columbia, another province or Canada, or

(b) who was formerly so employed or formerly occupied such a position or was formerly so engaged,

and, for the purposes of subsections (2) and (3), the portion of subsection (5) before paragraph (a) and section 241 (5) of the federal Act as applied by this section, "official" includes a designated person;

"police officer" means a police officer as defined in section 462.48 (17) of the Criminal Code;

"taxpayer information" means information of any kind and in any form relating to one or more taxpayers

(a) that is obtained for the purposes of this Act

(i) by or on behalf of the Provincial minister or finance minister or both, or

(ii) if a collection agreement has been entered into, by or on behalf of one or more of the Provincial minister, the finance minister or the federal minister, or

(b) that is prepared from information referred to in paragraph (a),

but does not include information that does not directly or indirectly reveal the identity of the taxpayer to whom the information relates.

(2) Except as authorized by this section, an official must not

(a) knowingly provide, or knowingly allow to be provided, to any person any taxpayer information,

(b) knowingly allow any person to have access to any taxpayer information, or

(c) knowingly use any taxpayer information otherwise than in the course of the administration and enforcement of this Act or for a purpose for which it was provided under this section.

(3) Despite any other enactment or law, an official must not be required, in connection with any legal proceedings, to give or produce evidence relating to any taxpayer information.

(4) Subsections (2) and (3) do not apply in respect of legal proceedings referred to in section 241 (3) of the federal Act.

(5) Subject to subsection (6), an official may

(a) provide to any person taxpayer information that can reasonably be regarded as necessary for the purposes of the administration or enforcement of this Act, solely for those purposes,

(b) provide to any person taxpayer information that can reasonably be regarded as necessary for the purposes of determining

(i) any tax, interest, penalty or other amount that is or may become payable by the person under this Act,

(ii) any refund or tax credit to which the person is or may become entitled under this Act, or

(iii) any other amount that is relevant for the purposes of a determination under subparagraph (i) or (ii),

(c) provide taxpayer information

(i) to an official of the Department of Finance of the Government of Canada, solely for the purposes of the formulation or evaluation of fiscal policy,

(i.1) to an official of the Department of Employment and Social Development of the Government of Canada, solely for the purposes of the administration or enforcement of the Canada Emergency Response Benefit Act,

(ii) to an official solely for the purposes of the initial implementation of a fiscal policy or for the purposes of the administration or enforcement of an Act of the Parliament of Canada that provides for the imposition and collection of a tax or duty,

(iii) to an official solely for the purposes of the administration or enforcement of an enactment of British Columbia or another province that provides for the imposition or collection of a tax or duty,

(iii.1) to an official of the ministry, solely for the purpose of monitoring the use of powers, the performance of duties and the exercise of discretion under this Act by the federal minister or the Commissioner of Customs and Revenue under a collection agreement,

(iii.2) to an official solely for the purposes of the administration or enforcement of Part 11.1 [Inspections, Audits and Assessments] of the Forest Act,

(iii.3) to an official solely for the purposes of the administration or enforcement of the Home Owner Grant Act, including for greater certainty a purpose set out in section 13.1 (3) (b) or (c) of that Act,

(iii.4) to an official solely for the purposes of the administration or enforcement of the Land Tax Deferment Act, including for greater certainty a purpose set out in section 13.1 (3) (b) or (c) of that Act,

(iii.5) to an official solely for the purposes of the administration or enforcement of the Real Estate Development Marketing Act,

(iii.6) to an official solely for the purposes of the administration or enforcement of the Workers Compensation Act,

(iv) to an official of the ministry of the finance minister, solely for the purposes of the formulation or evaluation of fiscal policy, or

(v) to an official solely for the purposes of setting off against any sum of money that may be due or payable by the government of British Columbia a debt due to that government or to the government of another province or of Canada,

(d) provide taxpayer information, or allow the inspection of or access to taxpayer information, as the case may be, under, and solely for the purposes of,

(i) sections 44 (1) and 61 (1) of the Freedom of Information and Protection of Privacy Act, or

(ii) sections 15, 16 and 17 of the Auditor General Act,

(e) provide taxpayer information solely for the purposes of sections 17 to 19 of the Financial Administration Act,

(f) use taxpayer information to compile information in a form that does not directly or indirectly reveal the identity of the taxpayer to whom the information relates,

(g) use, or provide to any person, taxpayer information solely for a purpose relating to the supervision, evaluation or discipline of an authorized person by the government in respect of a period during which the authorized person was employed by, or engaged by or on behalf of, the government to assist in the administration or enforcement of this Act, to the extent that the information is relevant for the purpose,

(h) use taxpayer information relating to a taxpayer to provide information to the taxpayer,

(i) provide taxpayer information to an official or a designated person solely for the purpose of permitting the making of an adjustment to

(i) a payment made on the basis of a means, needs or income test, or

(ii) a payment under an enactment of British Columbia in respect of a child within the meaning of the enactment,

if the purpose of the adjustment is to take into account an amount determined under section 13.071 (2) to (4) or 13.092 (2) to (4),

(i.1) provide taxpayer information to a police officer solely for the purpose of investigating whether an offence has been committed under the Criminal Code, or the laying of an information or the preferring of an indictment, if

(i) the taxpayer information can reasonably be regarded as being necessary for the purpose of ascertaining

(A) the circumstances in which an offence under the Criminal Code may have been committed, or

(B) the identity of the person who may have committed an offence,

with respect to an official, or with respect to any person related to that official,

(ii) the official was or is engaged in the administration or enforcement of this Act, and

(iii) the offence can reasonably be considered to be related to that administration or enforcement, and

(j) provide, or allow inspection of or access to, taxpayer information to or by any person otherwise legally entitled to it under an enactment of British Columbia solely for the purposes for which that person is entitled to the information.

(6) An official must not under subsection (5) (a) to (c) or (e) to (j) provide taxpayer information to, or allow inspection of or access to taxpayer information by, an official of

(a) a public body, as defined in the Freedom of Information and Protection of Privacy Act, other than the ministry or, under subsection (5) (c) (iv), the ministry of the finance minister,

(b) the government of Canada, or

(c) the government of another province,

except in accordance with an agreement entered into under section 65 or 69.

(7) Section 241 (3.1), (4.1) and (5) of the federal Act apply for the purposes of this Act.

(8) To the extent of any inconsistency or conflict with sections 32, 33, 33.1 and 33.2 of the Freedom of Information and Protection of Privacy Act, this section applies despite that Act.

(9) A person who

(a) contravenes subsection (2), or

(b) knowingly contravenes an order made under section 241 (4.1) of the federal Act as it applies for the purposes of this Act,

commits an offence.

(10) A person

(a) to whom taxpayer information has been provided for a particular purpose under subsection (5) (b), (d), (g) or (j), or

(b) who is an official to whom taxpayer information has been provided for a particular purpose under subsection (5) (a), (c), (e) or (i)

and who for any other purpose knowingly uses, provides to any person, allows the provision to any person of, or allows access to, that information commits an offence.

(11) A person who commits an offence under subsection (9) or (10) is liable to a fine not exceeding $5 000 or to imprisonment for a term not exceeding 12 months, or to both.

Information-sharing agreements

65   (1) In this section,

"information-sharing agreement" means an agreement or arrangement to exchange, by electronic data transmission, electronic data matching or any other means,

(a) information for a purpose referred to in section 64 (5), or

(b) information referred to in section 13.1 (5), 21 (15), 25.1 (9), 77.1, 95 (2), 130 or 209;

"taxpayer information" has the same meaning as in section 64.

(2) The Provincial minister, the finance minister or, if a collection agreement is in effect, the federal minister may enter into an information-sharing agreement with

(a) the government of Canada or an agency of that government,

(b) the government of a province or other jurisdiction in Canada or an agency of that government, or

(c) a public body as defined in the Freedom of Information and Protection of Privacy Act.

(3) Subject to subsection (3.1), taxpayer information obtained by the Provincial minister or finance minister under an information-sharing agreement or under an agreement entered into under section 69 may only be used or disclosed for the purpose for which it was obtained under the applicable agreement.

(3.1) Subsection (3) does not prevent

(a) any taxpayer information obtained by the Provincial minister or finance minister under an information-sharing agreement with the government of Canada or an agency of that government or under an agreement entered into under section 69 from being used or disclosed for the purpose of administering and enforcing an enactment administered by the Provincial minister or finance minister that provides for the imposition and collection of a tax or for the purpose of administering and enforcing the Home Owner Grant Act, the Land Tax Deferment Act, the International Financial Business (Tax Refund) Act, the International Business Activity Act or Part 11.1 of the Forest Act, or

(b) any taxpayer information obtained by the Provincial minister or finance minister under an information-sharing agreement from being used or disclosed for the purpose of administering and enforcing an Act of the Parliament of Canada that provides for the imposition and collection of a tax or duty.

(4) The Lieutenant Governor in Council may prescribe terms and conditions that are to be included in information-sharing agreements entered into by the Provincial minister or finance minister.

Application of federal provisions — liability of officer or agent of corporation

66   Section 242 of the federal Act applies for the purposes of this Act.

Application of federal provisions — restriction on power of court

67   Section 243 of the federal Act applies for the purposes of this Act.

Procedure and evidence

68   (1) Section 244 (1) to (5), (7) to (11), (13) to (17) and (20) of the federal Act applies for the purposes of this Act.

(2) Judicial notice must be taken, without being specially pleaded or proved, of

(a) all orders or regulations made under this Act, and

(b) a collection agreement entered into under this Act or any agreement for the collection by Canada of the tax imposed under the income tax statute of an agreeing province.

(3) For the purposes of this Act, anything sent by first class mail or its equivalent is deemed to have been received by the person to whom it is sent on the day that it was mailed, except that a remittance of an amount deducted or withheld as required by this Act or a regulation or by a provision of the federal Act or of the federal regulations that applies for the purposes of this Act is deemed to have been remitted on the day it is received by the minister.

(4) A document purporting to be a collection agreement entered into under this Act or an agreement with Canada for the collection of tax imposed under the income tax statute of an agreeing province that is published in the Canada Gazette, or certified as such by or on behalf of the Provincial minister, or of the Provincial minister, the Provincial Treasurer or the Provincial Secretary Treasurer of the appropriate agreeing province, must be received as proof of its contents in the absence of evidence to the contrary.

(5) A certificate signed by the minister stating the amount of

(a) a taxpayer's income for the year as defined in section 4 (1), or

(b) a taxpayer's taxable income

is evidence of the amount of the taxpayer's income for the year or taxable income, as the case may be.

(6) If a collection agreement is entered into, any document or certificate that is executed or issued by the federal minister, the Commissioner of Customs and Revenue or an official of the Canada Customs and Revenue Agency on behalf or in place of the Provincial minister, the deputy Provincial minister or an officer of the ministry, is deemed for all purposes of this Act to be executed or issued by the Provincial minister, the deputy Provincial minister or an officer of the ministry.

Anti-avoidance rule

68.1   (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 to have been undertaken or arranged primarily for bona fide purposes other than to obtain a tax benefit;

"BC tax benefit" means a tax benefit under this Act;

"tax benefit" means

(a) a reduction, avoidance or deferral of tax, or of another amount, payable under this Act, the federal Act or a law of a province that imposes a tax similar to the tax imposed under this Act or the federal Act, including a reduction, avoidance or deferral of tax, or of another amount, payable under this Act, the federal Act or any of those laws of a province but for a tax treaty, or

(b) an increase in a refund of tax, or of another amount, under this Act, including an increase in a refund of tax, or of another amount, under this Act, the federal Act or any of those laws of a province as a result of a tax treaty;

"tax consequences" to a person means

(a) the amount of the person's

(i) income for the year, within the meaning of section 4 (1),

(ii) loss,

(iii) taxable income,

(iii.1) taxable income earned in Canada, within the meaning of section 4 (1),

(iv) income earned in the taxation year in British Columbia, within the meaning of section 4 (1),

(v) income earned in the taxation year outside British Columbia, within the meaning of section 4 (1), or

(vi) taxable income earned in the year in British Columbia, within the meaning of section 13.3, or

(b) any amount, other than an amount referred to in paragraph (a), that is payable or refundable to the person under this Act or that is relevant for the purposes of determining any other amount referred to in this section;

"transaction" includes an arrangement or event.

(2) If a transaction is an avoidance transaction, the tax consequences to a person must be determined in a manner that is reasonable in the circumstances in order to deny a BC 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.

(2.1) Subsection (2) applies to a transaction only if the transaction may reasonably be considered to be a transaction that

(a) would, if this Act were read without reference to this section, result, directly or indirectly, in a misuse of the provisions of one or more of the following:

(i) this Act;

(ii) the regulations;

(iii) the federal Act;

(iv) the federal regulations;

(v) the Income Tax Application Rules (Canada);

(vi) a tax treaty;

(vii) any other enactment of British Columbia, any other law of Canada or any law of another province that is relevant in computing tax or any other amount payable by or refundable to a person under this Act, or in determining any amount that is relevant for the purposes of that computation, or

(b) would result, directly or indirectly, in an abuse having regard to those provisions, other than this section, read as a whole.

(3) Without limiting subsection (2),

(a) any amount deducted in computing an amount referred to in paragraph (a) or (b) of the definition of "tax consequences" in subsection (1) may be allowed or disallowed in whole or in part,

(b) any deduction referred to in paragraph (a) of this subsection or any other amount used in determining an amount payable or refundable under this Act may be allocated to any person,

(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 or the regulations may be ignored,

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 would, but for this section, result, directly or indirectly, from an avoidance transaction.

(3.1) Despite any other provision of this Act, if an amount under this Act is adjusted under this section by reason of a determination under subsection (2) of the tax consequences of a transaction to a person, and the amount would have been, but for that adjustment, an amount determined under the federal Act, the amount determined under the federal Act is deemed to have been adjusted to the same extent for the purposes of this Act.

(4) If a notice of assessment, reassessment or additional assessment reflecting the application of subsection (2) to a transaction has been sent to a person, or a notice of determination under section 29 or 30 has been sent to the person, any other person is entitled, within 180 days after the date of the sending of that notice, to request in writing that the minister make an assessment, reassessment or additional assessment applying subsection (2) of this section or make a determination applying section 29 or 30 with respect to the transaction.

(5) On receipt of a request by a person under subsection (4), the minister must consider the request and make an assessment, reassessment or additional assessment, or a determination under section 29 or 30, with respect to the person, despite the expiry of any time limit under section 29 or 30, except that an assessment, reassessment or additional assessment or determination may be made under this subsection only to the extent that it may be reasonably regarded as relating to a transaction referred to in subsection (4) of this section.

(6) The tax consequences to any person, after the application of this section, must only be determined through

(a) a notice of assessment, reassessment or additional assessment under section 29 or 30, or

(b) a notice of determination under section 29 or 30 or Part 13 [Natural Gas Tax Credit].

Reportable transactions

68.2   (1) Section 237.3 of the federal Act applies for the purposes of this Act except that, in addition to any other necessary modifications, a reference in that section to "tax benefit" is to be read as a reference to "BC tax benefit", as defined in section 68.1 of this Act.

(2) In applying section 237.3 of the federal Act for the purposes of this Act, "reportable transaction" means

(a) a reportable transaction as defined in section 237.3 (1) of the federal Act, or

(b) an avoidance transaction in a prescribed class of avoidance transaction.

Part 3 — Collection of Tax

Collection agreement

69   (1) The finance minister, with the approval of the Lieutenant Governor in Council, may, on behalf of the government of British Columbia, enter into a collection agreement with the government of Canada under which the government of Canada will collect taxes payable under this Act on behalf of British Columbia and will make payments to British Columbia for the taxes collected, under the terms and conditions of the collection agreement.

(2) The finance minister, with the approval of the Lieutenant Governor in Council, may, on behalf of the government of British Columbia, enter into an agreement amending the terms and conditions of a collection agreement.

(3) If a collection agreement is entered into, the federal minister, on behalf of or as agent for the Provincial minister, is authorized to use all the powers, to perform all the duties and to exercise any discretion that the Provincial minister or the deputy Provincial minister has under this Act, including the discretion to refuse to permit the production in judicial or other proceedings in British Columbia of any document that it is not, in the opinion of the federal minister, in the interests of public policy to produce.

(4) If a collection agreement is entered into, the Commissioner of Customs and Revenue may

(a) use all the powers, perform the duties and exercise any discretion that the federal minister has under subsection (3) or otherwise under this Act, and

(b) designate officers of his or her agency to carry out functions, duties and powers similar to those that are exercised by them on his or her behalf under the federal Act.

(5) Despite subsection (3), the federal minister is not authorized to use, perform or exercise any of the following powers, duties or discretions of the Provincial minister:

(a) and (b) [Repealed 2018-12-17.]

(c) respecting the collection and sharing of information under sections 13.1 (5), 21 (15), 25.1 (9), 77.1, 95 (2) and 130;

(d) respecting an appeal under section 18;

(e) respecting an information-sharing agreement under section 65;

(f) any power, duty or discretion under sections 68 (4) and 95 (1).

Payments on account

70   (1) A collection agreement may provide that if any payment is received by the federal minister on account of tax payable by a taxpayer for a taxation year under this Act, the federal Act or an income tax statute of another agreeing province, or under any 2 or more of those statutes, the payment received may be applied by the federal minister toward the tax payable by the taxpayer under any of the statutes in the manner specified in the agreement, even though the taxpayer directed that the payment be applied in any other manner or made no direction for its application.

(2) Any payment or part of it applied by the federal minister under a collection agreement toward the tax payable by a taxpayer for a taxation year under this Act

(a) relieves the taxpayer of liability to pay the tax to the extent of the payment, and

(b) is deemed to have been applied in accordance with a direction made by the taxpayer.

No action against persons withholding tax

71   If a collection agreement is in effect and an amount is remitted to the Receiver General for Canada under section 153 (1) of the federal Act, as it applies for the purposes of this Act, on account of the tax of an individual who is resident on the last day of the taxation year in another agreeing province,

(a) no action lies for recovery of the amount by that individual, and

(b) the amount may not be applied in discharge of any liability of that individual under this Act.

Relief of taxpayer

72   (1) If a collection agreement is entered into, an individual resident in British Columbia on the last day of the taxation year is not required to remit any amount on account of tax payable by the individual under this Act for the taxation year to the extent of the amount deducted or withheld on account of the individual's tax for that year under the income tax statute of another agreeing province.

(2) If the total amount deducted or withheld on account of tax payable under this Act and under the income tax statute of another agreeing province by an individual resident in British Columbia on the last day of the taxation year to whom subsection (1) applies exceeds the tax payable by the individual under this Act for that year, section 40 of this Act applies to the individual as though the excess were an overpayment under this Act.

Non-agreeing provinces

73   (1) In this section:

"adjusting payment" means a payment, calculated under this section, made by or on the direction of British Columbia to a non-agreeing province;

"amount deducted or withheld" does not include any refund made in respect of that amount;

"non-agreeing province" means a province that is not an agreeing province.

(2) If, in respect of a taxation year, a non-agreeing province is authorized to make a payment to British Columbia that, in the opinion of the finance minister, corresponds to an adjusting payment, the Lieutenant Governor in Council may authorize the finance minister to make an adjusting payment to that non-agreeing province and enter into any agreement that may be necessary to carry out the purposes of this section.

(3) If a collection agreement is entered into, the adjusting payment that may be made under subsection (2) may be made by the government of Canada if it has agreed to act on the direction of British Columbia as communicated by the finance minister to the federal minister.

(4) The adjusting payment to be made under this section is an amount that equals the aggregate of the amounts deducted or withheld under section 153 (1) of the federal Act, as it applies for the purposes of this Act, in respect of the tax payable for a taxation year by individuals who

(a) file returns under the federal Act,

(b) are taxable under that Act for that year, and

(c) are resident on the last day of that year in the non-agreeing province to which the adjusting payment is to be made.

(5) If an adjusting payment is to be made and there has been an amount deducted or withheld under section 153 (1) of the federal Act, as it applies for the purposes of this Act, on account of the tax for a taxation year of an individual who is taxable under the federal Act in respect of that year and who is resident on the last day of that taxation year in the non-agreeing province,

(a) no action lies for the recovery of the amount by that individual, and

(b) the amount may not be applied in discharge of any liability of that individual under this Act.

(6) If an adjusting payment to a non-agreeing province is to be made under this section for a taxation year, an individual resident in British Columbia on the last day of the taxation year is not required to remit any amount on account of tax payable by the individual under this Act for the taxation year to the extent of the amount deducted or withheld on account of the individual's income tax for that year under the law of that non-agreeing province.

(7) If an adjusting payment to a non-agreeing province is to be made under this section for a taxation year, the total amount deducted or withheld on account of tax payable under this Act and on account of the income tax payable under the law of the non-agreeing province by an individual resident in British Columbia on the last day of the taxation year to whom subsection (6) applies exceeds the tax payable by the individual under this Act for that year, section 40 of this Act applies to the individual as though the excess were an overpayment under this Act.

(8) If a collection agreement is entered into and the government of Canada has agreed in respect of a taxation year to carry out the direction of British Columbia and to make an adjusting payment on behalf of British Columbia, the adjusting payment

(a) must be made out of any money that has been collected on account of tax under this Act for any taxation year, and

(b) is the amount calculated by the federal minister to be the amount required to be paid under subsection (4).

(9) The adjusting payment under subsection (8) discharges any obligation the government of Canada may have to pay British Columbia for any amount deducted or withheld under section 153 (1) of the federal Act, as it applies for the purposes of this Act, to which subsection (5) of this section applies.

Enforcement of judgments

74   (1) Despite the Court Order Enforcement Act, if a collection agreement is entered into, a judgment of a superior court of an agreeing province under that province's income tax statute, including any certificate registered in that superior court in a manner similar to that provided in section 223 (3) of the federal Act, as it applies for the purposes of this Act, may be enforced in the manner provided in section 223 of the federal Act, as it applies for the purposes of this Act, by registering a copy of the judgment or certificate, certified by the registrar of the proper superior court.

(2) The registered judgment or certificate referred to in subsection (1) is deemed, for the purposes of this Act, to be a judgment of the Supreme Court.

Part 4 — Miscellaneous

Appointments

75   There may be appointed in the ministry, under the Public Service Act, a Commissioner of Income Tax, together with those officers, clerks and employees considered necessary for the administration of this Act.

Delegation of powers

76   (1) The deputy head, with the approval of the minister, may authorize the Commissioner of Income Tax or any other officer of the ministry to perform and exercise duties imposed and powers conferred by this Act on the deputy head as may in his or her opinion be conveniently performed or exercised by that officer.

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

Duty of officers of government to provide information

77   All commissioners and other officers, clerks, and sub-agents of the Ministry of Agriculture and Lands throughout British Columbia, the registrars of titles, government agents, mining recorders, gold commissioners and other officers or agents of the government of British Columbia must, on the written request of the deputy head or other authorized officer, provide him or her without charge with the information he or she considers necessary for the purposes of this Act.

Timber harvest information

77.1   (1) In this section, "timber harvest information" means

(a) the name and address of persons who harvest timber in British Columbia and the applicable timber mark number,

(b) the volume of timber harvested in British Columbia by each of those persons, and

(c) any stumpage paid or payable to the government by each of those persons.

(2) Without limiting any provision of this or any other enactment, the Provincial minister, the federal minister, if a collection agreement is in effect, and the minister responsible for the administration of the Forest Act may

(a) collect timber harvest information that is relevant to the administration and enforcement of this Act, and

(b) share with each other, in accordance with an information-sharing agreement entered into under section 65 of this Act, timber harvest information that is relevant to the administration and enforcement of this Act.

British Columbia Assessment Authority must provide information

77.2   The British Columbia Assessment Authority must provide, without charge, assistance and access to its records to the minister and the Commissioner of Income Tax.

Costs and expenses

78   The costs and expenses incurred for the purposes of this Act must, in the absence of any special appropriation of the Legislature available for that purpose, be paid out of the consolidated revenue fund.

Part 5 — Film and Television Tax Credit

Definitions and interpretation

79   (1) In this Part:

"accredited BC labour expenditure" of an accredited production corporation for a taxation year in relation to an accredited production means the amount that would be the corporation's BC labour expenditure for the taxation year in relation to the production, to the extent that the amounts referred to in the definition of "BC labour expenditure" did not and do not form part of the accredited BC labour expenditure of any other corporation, if

(a) the references to March 31, 1998 in that definition were read as references to May 31, 1998, and

(b) the only amounts that could be included in determining the corporation's BC labour expenditure for the taxation year in relation to the production were in respect of services rendered in British Columbia;

"accredited production" means a film or video production, other than an excluded production, for which the total expenditures included in the cost of producing the production, incurred in the 24 month period beginning when principal photography begins, other than any amounts determined by reference to profits or revenues, are

(a) greater than $100 000, in the case of a production that is an episode, or a pilot for an episode, with a running time of less than 30 minutes,

(a.1) despite paragraph (a), greater than nil, in the case of a production, all or substantially all of which consists of prescribed digital animation or visual effects, that is an episode, or a pilot for an episode, with a running time of less than 30 minutes,

(b) greater than $200 000, in the case of a production that is an episode, or a pilot for an episode, with a running time of 30 minutes or more, or

(c) greater than $1 million, in any other case;

"accredited production corporation", in relation to an accredited production for a taxation year, means

(a) a corporation

(i) that is a BC-based corporation during the taxation year,

(ii) the activities of which throughout the taxation year are primarily the carrying on of

(A) a film or video production business, or

(B) a film or video production services business, and

(iii) that owns the copyright in the production throughout the period during which the production is produced in British Columbia, or

(b) if there is no accredited production corporation within the meaning of paragraph (a) in relation to the production, a corporation that

(i) meets the criteria established by paragraph (a) (i) and (ii), and

(ii) has contracted directly with the owner of the copyright in the production to render production services in respect of the production,

but does not include a corporation all or part of whose taxable income is at any time in the taxation year exempt from tax under Part 1 of the federal Act or a corporation that, at any time in the taxation year, comes within any of paragraphs (a) to (f) of the definition of 'eligible production corporation';

"accredited qualified BC labour expenditure" of an accredited production corporation for a taxation year in relation to an accredited production means the amount, if any, by which

(a) the total of the corporation's accredited BC labour expenditure for the taxation year and for each of the preceding taxation years in relation to the production

exceeds

(b) the total of the following:

(i) all amounts of assistance that can reasonably be considered to be in respect of amounts included in the total referred to in paragraph (a) in respect of the production and that, at the time of filing of the corporation's return of income for the taxation year,

(A) the corporation or any other person or partnership has received or is entitled to receive or can reasonably be expected to receive,

(B) has not been repaid under a legal obligation to do so, and

(C) has not otherwise reduced the total referred to in paragraph (a);

(ii) all amounts that are the accredited qualified BC labour expenditure of the corporation in respect of the production for each of the preceding taxation years before the end of which principal photography of the production began;

(iii) all amounts included in the total referred to in paragraph (a) for which reimbursement is to be or has been provided to the corporation, as a parent within the meaning of paragraph (c) of the definition of "BC labour expenditure", in respect of the accredited production under an agreement referred to in that paragraph;

(iv) all amounts of the accredited BC labour expenditure of the corporation in respect of the production that are incurred before the date that the corporation gave notice under section 84.1, unless notice is not required under section 84.1 (5) or was given on or before the later of the following:

(A) the day that is 60 days after the corporation first incurs an amount that is an accredited BC labour expenditure in respect of that production;

(B) if the corporation's eligibility certificate in respect of that production is revoked, the day that is 30 days after the revocation date;

"assistance" means an amount, other than a prescribed amount or an amount deemed to have been paid under section 84 or under section 125.4 (3) or 125.5 (3) of the federal Act, that would be included under section 12 (1) (x) of the federal Act in computing the income of a taxpayer for any taxation year if that section were read without reference to subparagraphs (v) to (vii) of that section 12 (1) (x);

"BC-based corporation" means a corporation that has a permanent establishment in British Columbia;

"BC-based individual" means,

(a) in relation to an eligible production for which principal photography begins before February 20, 2008, an individual who, by reason of being an individual described in section 2 (1) (a), is subject to tax under section 2 for the year preceding the year in which principal photography of the production begins, or

(b) in relation to an eligible production for which principal photography begins after February 19, 2008, an individual who was resident in British Columbia at the end of December 31 of the year preceding the end of the taxation year for which a tax credit is claimed under this Part in respect of the production;

"BC labour expenditure" of a corporation for a taxation year means, in relation to a film or video production, the total of the following amounts, to the extent that they are reasonable in the circumstances, that did not and do not form part of the BC labour expenditure of any other corporation:

(a) the salary or wages that

(i) are directly attributable to the production,

(ii) are incurred in respect of the production

(A) after March 31, 1998,

(B) in that taxation year, or in the preceding taxation year, and

(C) for the stages of production of the production, after the final script stage to the end of the post-production stage, and

(iii) are amounts that

(A) were paid to BC-based individuals by the corporation in the taxation year, or within 60 days after the end of the taxation year, and

(B) did not form part of the corporation's BC labour expenditure for the preceding taxation year;

(b) remuneration, other than salary or wages, that

(i) is directly attributable to the production,

(ii) relates to services rendered in respect of the production

(A) after March 31, 1998,

(B) in that taxation year, or in the preceding taxation year, and

(C) for the stages of production of the production, after the final script stage to the end of the post-production stage,

(iii) did not form part of the corporation's BC labour expenditure for the preceding taxation year, and

(iv) is paid, for the services referred to in subparagraph (ii), by the corporation in the taxation year, or within 60 days after the end of the taxation year, to

(A) a BC-based individual, to the extent that the amount paid

(I) is attributable to services personally rendered by the individual for the production, or

(II) is attributable to and does not exceed the salary or wages of the individual's employees who are BC-based individuals for personally rendering services for the production,

(B) another corporation that is a taxable Canadian corporation, if all of the issued and outstanding shares of the capital stock of the corporation, except directors' qualifying shares, if any, belong to a BC-based individual and the activities of the corporation consist principally of the provision of that individual's services, to the extent that the amount paid is attributable to services rendered personally by the individual for the production,

(C) another corporation that is a taxable Canadian corporation, to the extent that the amount paid is attributable to and does not exceed the salary or wages of that corporation's employees who are BC-based individuals for personally rendering services for the production, or

(D) a partnership that is carrying on business in Canada, to the extent that the amount paid

(I) is attributable to services personally rendered for the production by a BC-based individual who is a member of the partnership, or

(II) is attributable to and does not exceed the salary or wages of the partnership's employees who are BC-based individuals for personally rendering services for the production;

(c) a reimbursement, other than a reimbursement that constitutes remuneration within the meaning of paragraph (b), made by the corporation to a second corporation (in this paragraph the "parent") of an expenditure that was made by the parent in respect of the production in a particular taxation year of the parent if

(i) the corporation is a wholly-owned subsidiary of the parent,

(ii) the parent is a taxable Canadian corporation,

(iii) the corporation and the parent have agreed that this paragraph applies in respect of the production,

(iv) the reimbursement is made by the corporation in the corporation's taxation year, or within 60 days after the end of that taxation year, and

(v) the expenditure would have qualified for inclusion in the BC labour expenditure of the corporation in respect of the production for the taxation year under paragraph (a) or (b) if

(A) the taxation year for the corporation were the same as the taxation year for the parent, and

(B) the expenditure had been incurred by the corporation for the same purpose, and had been paid by the corporation at the same time and to the same person or partnership, as it was by the parent

but does not include

(d) an amount to which section 37 of the federal Act applies,

(d.1) an amount included in eligible salary and wages under section 134 (2) of this Act in respect of a tax credit claimed under that section by the corporation or by another corporation referred to in paragraph (b) or (c) of this definition,

(e) an amount that is not a cost of producing the production,

(f) without limiting paragraph (e), an amount in respect of advertising, marketing, promotion or market research, or

(g) an amount related in any way to another film or video production;

"certifying authority" means the Minister of Tourism, Arts and Culture;

"distant location" means a prescribed area of British Columbia that is outside of the designated Vancouver area;

"eligible activities" means

(a) prescribed digital animation or visual effects activities, and

(b) prescribed digital post-production activities;

"eligible production" means a film or video production made by an eligible production corporation that meets the following criteria:

(a) the production is not an excluded production;

(b) if the production is for television broadcast and is not directed primarily to children, the production, or, if the production comprises 2 or more episodes, each episode in the production, is suitable for initial broadcast in a standard television time slot of at least 30 minutes;

(c) neither the production nor any interest in a person or partnership that has, directly or indirectly, an interest in the production is a tax shelter investment as defined in section 143.2 (1) of the federal Act;

(d) in the case of a production that is not a documentary, at least 75% of the cost of producing the production, other than costs determined by reference to the amount of income from the production, or, in the case of an interprovincial co-production or a treaty co-production, at least 75% of the cost of producing the British Columbia portion of the production, other than costs determined by reference to the amount of income from the production, is payable to BC-based individuals or BC-based corporations in respect of goods or services provided in British Columbia by

(i) BC-based individuals who are employees, or

(ii) BC-based individuals, or BC-based corporations, in the course of carrying on business through a permanent establishment in British Columbia;

(d.1) in the case of a production that is a documentary, at least 75% of the cost of producing the production, other than costs determined by reference to the amount of income from the production, or, in the case of an interprovincial co-production or a treaty co-production, at least 75% of the cost of producing the British Columbia portion of the production, other than costs determined by reference to the amount of income from the production, is payable to BC-based individuals or BC-based corporations in respect of goods or services provided by

(i) BC-based individuals who are employees, or

(ii) BC-based individuals, or BC-based corporations, in the course of carrying on business through a permanent establishment in British Columbia;

(e) there is a written agreement with a Canadian-controlled corporation that is a distributor of film or video productions, or with a Canadian broadcaster that is not associated, within the meaning of section 256 of the federal Act, with the eligible production corporation, for consideration at fair market value, to have the production shown in Canada within 24 months after the completion of the production;

(f) the following additional conditions are satisfied:

(i) if the production is neither an interprovincial co-production nor a treaty co-production,

(A) the certifying authority has allotted at least 6 Canadian content points in respect of the production in accordance with the regulations, or the production is a documentary and all of the creative positions applicable to the production are occupied by Canadians,

(B) at least 75% of the cost of post-production work for the production, other than costs determined by reference to the amount of income from the production, is for post-production work carried out in British Columbia, and

(C) in the case of a production that is not a documentary, principal photography of the production is done in British Columbia during at least 75% of the total number of days during which principal photography of the production is done;

(ii) if the production is an interprovincial co-production,

(A) the certifying authority has allotted at least 6 Canadian content points in respect of the production in accordance with the regulations, or the production is a documentary and all of the creative positions applicable to the production are occupied by Canadians,

(B) at least 20% of the cost of producing the production, other than costs determined by reference to the amount of income from the production, is in respect of the British Columbia portion of the production, and

(C) at least 50% of the cost of post-production work for the production, other than costs determined by reference to the amount of income from the production, is for post-production work carried out in British Columbia;

(iii) if the production is a treaty co-production, at least 20% of the cost of producing the Canadian portion of the production, other than costs determined by reference to the amount of income from the production, is in respect of the British Columbia portion of the production;

"eligible production corporation", for a taxation year, means a BC-based corporation that is throughout the taxation year a Canadian-controlled taxable Canadian corporation the activities of which in the taxation year are primarily the carrying on of a film or video production business through a permanent establishment in Canada, but does not include a corporation all or part of whose taxable income is at any time in the taxation year exempt from tax under Part 1 of the federal Act or a corporation that, at any time in the taxation year,

(a) is exempt from tax under section 27,

(b) is controlled directly or indirectly in any manner whatever by one or more persons all or part of whose taxable income is exempt from tax under section 27 of this Act or under Part 1 of the federal Act,

(c) is prescribed, under the federal Act, to be a labour-sponsored venture capital corporation for the purpose of section 127.4 of that Act,

(d) has registered an employee share ownership plan under section 2 of the Employee Investment Act,

(e) is an employee venture capital corporation registered under section 8 of the Employee Investment Act, or

(f) is a small business venture capital corporation registered under section 3 of the Small Business Venture Capital Act;

"episode" means an episode of a film or video production intended for television broadcast as a series;

"post-production work" means goods and services directly related to post-production activities, but does not include stock footage;

"qualified BC labour expenditure" of a corporation for a taxation year in respect of a film or video production means the lesser of

(a) the positive amount, if any, determined by the formula

LE + DL − RE
where
LEmeans the BC labour expenditure of the corporation for the taxation year in respect of the production,
DLmeans, if the production is not complete before the beginning of the previous taxation year and the corporation had, for the previous taxation year, a qualified BC labour expenditure that was determined in respect of the production under paragraph (b) of this definition, the difference between the previous year's qualified BC labour expenditure and the amount that would have been the previous year's qualified BC labour expenditure had that amount been calculated under paragraph (a) of this definition, and
RE means the total of those expenditures made in respect of the production
(i)that are included in LE, and
(ii)for which reimbursement is to be or has been provided to the corporation under an agreement referred to in paragraph (c) of the definition of "BC labour expenditure", and

(b) the positive amount, if any, determined by the formula

PCT × (TPC − TA) − LC
where
PCT means
(a)if principal photography of the production begins before March 1, 2010, 48%, or
(b)if principal photography of the production begins after February 28, 2010, 60%,
TPC means the total, determined at the end of the taxation year, of the costs paid or payable, in producing the production, by one or more of the owners of the copyright in the production,
TA means the total of all amounts of assistance in respect of TPC that, at the time of the filing of the corporation's return of income for the year,
(a)the corporation or any other person or partnership has received, is entitled to receive or can reasonably be expected to receive,
(b)has not been repaid under a legal obligation to do so, and
(c)does not otherwise reduce TPC, and
LC means the total of the corporation's qualified BC labour expenditures
(a)in respect of the production, and
(b)for each of the preceding taxation years before the end of which principal photography of the production began;

"related" has the same meaning as in section 251 of the federal Act;

"remuneration" does not include an amount determined by reference to profits or revenues;

"salary or wages" has the same meaning as in section 248 of the federal Act as modified by section 125.4 (1) of that Act;

"taxable Canadian corporation" has the same meaning as in the federal Act.

(2) If a film or video production is intended for television broadcast as a series,

(a) for the purposes of a tax credit under sections 80 to 82, all the episodes constituting one cycle of the series are to be considered a single production, and

(b) for the purposes of a tax credit under sections 82.1 to 82.3,

(i) each episode is to be considered a separate production, and

(ii) in the case of 2 or more episodes constituting one cycle of the series, sections 82.1 to 82.3 and the regulations, as they read on the date on which principal photography of the first eligible episode began, apply for the purpose of determining the amount of the tax credit in respect of the other eligible episodes of the cycle.

(3) In subsection (2) (b) (ii):

"eligible episode" means an episode of a cycle of a series for which episode a corporation is eligible for, and has made or is making an application in accordance with section 85 for, a tax credit under section 82.1;

"first eligible episode" means the eligible episode of the cycle for which episode principal photography began before the beginning of principal photography of the other eligible episodes of that cycle.

Basic tax credit

80   (1) A corporation is eligible for a basic tax credit for a taxation year in respect of an eligible production if

(a) principal photography of the production begins

(i) before the end of the taxation year, and

(ii) after March 31, 1998,

(iii) [Repealed 2009-4-25.]

(b) the production is completed within 24 months after the end of the corporation's taxation year in which the principal photography of the production began,

(c) for a production for which principal photography begins before January 1, 2009, the corporation is, throughout the taxation year in respect of which the tax credit is being claimed, an eligible production corporation that is BC-controlled,

(c.1) for a production for which principal photography begins on or after January 1, 2009, the corporation is, throughout the taxation year in respect of which the tax credit is being claimed, an eligible production corporation,

(d) the producer of the production, or, in the case of an interprovincial co-production or a treaty co-production, the producer of the British Columbia portion of the production, is an individual who,

(i) by reason of being an individual described in section 2 (1) (a), is subject to tax under section 2 for the year preceding the year in which principal photography of the production begins, and

(ii) in the year preceding the year in which principal photography of the production begins, is a Canadian,

(e) no distribution of the production is made in Canada, within 24 months after the completion of the production, by a person who is not a Canadian,

(f) for a production that is neither an interprovincial co-production nor a treaty co-production,

(i) more than 50% of the copyright in the production is owned by the corporation or by the corporation and one or both of

(A) in the case of a production for which principal photography begins before January 1, 2009, a BC-controlled eligible production corporation related to the corporation, or in the case of a production for which principal photography begins on or after January 1, 2009, an eligible production corporation related to the corporation, and

(B) a prescribed person, and

(ii) the balance, if any, of the copyright is owned by one or more of the following:

(A) an eligible production corporation;

(B) a corporation that would be an eligible production corporation if it had a permanent establishment in British Columbia;

(C) a recognized person,

(g) for a production that is neither an interprovincial co-production nor a treaty co-production, the initial licensing of the commercial exploitation of the production is controlled by one of the corporations referred to in paragraph (f) (i),

(h) for a production that is an interprovincial co-production or a treaty co-production and for which principal photography begins before January 1, 2009, the corporation, or a BC-controlled eligible production corporation that is related to the corporation, retains a share, acceptable to the certifying authority, of revenues from the exploitation of the production in non-Canadian markets,

(h.1) for a production that is an interprovincial co-production or a treaty co-production and for which principal photography begins on or after January 1, 2009, the corporation, or an eligible production corporation that is related to the corporation, retains a share, acceptable to the certifying authority, of revenues from the exploitation of the production in non-Canadian markets,

(i) for a production that is an interprovincial co-production and for which principal photography begins before January 1, 2009, more than 20% of the copyright in the production is owned by the corporation or by a BC-controlled eligible production corporation that is related to the corporation,

(i.1) for a production that is an interprovincial co-production and for which principal photography begins on or after January 1, 2009 and before January 1, 2012, more than 20% of the copyright in the production is owned by the corporation or by an eligible production corporation that is related to the corporation,

(i.2) for a production that is an interprovincial co-production and for which principal photography begins on or after January 1, 2012,

(i) more than 50% of the copyright in the production is owned by the corporation or by the corporation and one or both of

(A) an eligible production corporation related to the corporation, and

(B) a prescribed person, and

(ii) the balance, if any, of the copyright is owned by one or more of the following:

(A) an eligible production corporation;

(B) a corporation that would be an eligible production corporation if it had a permanent establishment in British Columbia;

(C) a recognized person;

(D) subject to subsection (1.2), a Canadian-controlled corporation that is a party to the co-production agreement relating to the production,

(j) the corporation has obtained a valid eligibility certificate issued to it under section 86 in respect of the production and the claimed tax credit, and

(k) the corporation makes application for the basic tax credit in accordance with section 85.

(1.1) For the purposes of subsection (1) (f) (i) and (i.2) (i), a corporation referred to in that provision does not, or that corporation with one or both of the other persons referred to in that provision do not, own more than 50% of the copyright in a production unless it controls, or they control, within the meaning of the regulations, the copyright in the production.

(1.2) For the purposes of subsection (1) (i.2) (ii) (D), the copyright owned by the Canadian-controlled corporation is restricted to the extent of the corporation's interest in the production as a co-producer under the co-production agreement.

(2) The amount of the tax credit that may be claimed by a qualifying corporation under this section is,

(a) in the case of a production that is an interprovincial co-production and for which principal photography begins before January 1, 2012, 20% of the corporation's qualified BC labour expenditure for the taxation year in respect of the production multiplied by the percentage of the copyright in the production that is owned by the corporation, or

(b) in any other case, 20% of the corporation's qualified BC labour expenditure for the taxation year in respect of the production.

(3) For the purposes of subsections (2) (a), (4) (a) and (6) (a), "copyright in the production" means that portion of the copyright in the production that is not owned by the following:

(a) any person to whom section 149 (1) (l) of the federal Act applies if the person has a fund that is used to finance film or video productions;

(b) any federal or provincial government agency the mandate of which is related to the provision of financing to film or video productions in Canada.

(4) In addition to the tax credit that may be claimed under subsection (2) but subject to subsection (5), the amount of the tax credit that may be claimed by a qualifying corporation under this section is,

(a) in the case of a production that is an interprovincial co-production and for which principal photography begins before January 1, 2012, 10% of the corporation's qualified BC labour expenditure for the taxation year in respect of the production multiplied by the percentage of the copyright in the production that is owned by the corporation, or

(b) in any other case, 10% of the corporation's qualified BC labour expenditure for the taxation year in respect of the production.

(5) For a qualifying corporation to claim a tax credit in the amount calculated under subsection (4) in respect of an eligible production, the following rules apply:

(a) in addition to the other requirements in subsection (1), principal photography of the production must begin after December 31, 2004;

(b) the references to "March 31, 1998" in the definition of "BC labour expenditure" in section 79 (1) must be read as "December 31, 2004";

(c) despite section 79 (2) (a), if the production is intended for television broadcast as a series and principal photography of a cycle of the series begins before January 1, 2005, all the episodes of the cycle for which principal photography begins after December 31, 2004 are to be considered a single production.

(d) [Repealed 2006-2-10.]

(6) In addition to the tax credits that may be claimed under subsections (2) and (4) but subject to subsection (7), the amount of the tax credit that may be claimed by a qualifying corporation under this section is,

(a) in the case of a production that is an interprovincial co-production and for which principal photography begins before January 1, 2012, 5% of the corporation's qualified BC labour expenditure for the taxation year in respect of the production multiplied by the percentage of the copyright in the production that is owned by the corporation, or

(b) in any other case, 5% of the corporation's qualified BC labour expenditure for the taxation year in respect of the production.

(7) For the purpose of determining the amount of the tax credit under subsection (6), the references to "March 31, 1998" in the definition of "BC labour expenditure" in section 79 (1) must be read as "December 31, 2007".

Scriptwriting tax credit

80.1   (1) In this section:

"eligible BC scriptwriting expenditure" of a corporation means, in relation to a film or video production, the total of the following amounts, to the extent that they are reasonable in the circumstances, that did not and do not form part of the eligible BC scriptwriting expenditure of any other corporation:

(a) the salary or wages of scriptwriters that

(i) are directly attributable to the development of script material for the production,

(ii) are incurred in respect of the production

(A) after the later of

(I) February 20, 2018, and

(II) the date that is 2 years before the date principal photography of the production begins, and

(B) before the end of the final script stage of production of the production, and

(iii) are amounts that were paid to BC-based individuals by the corporation not later than 60 days after the end of the corporation's taxation year in which principal photography of the production begins;

(b) remuneration, other than salary or wages, of scriptwriters that

(i) is directly attributable to the development of script material for the production,

(ii) relates to services rendered in respect of the production

(A) after the later of

(I) February 20, 2018, and

(II) the date that is 2 years before the date principal photography of the production begins, and

(B) before the end of the final script stage of production of the production,

(iii) is paid, for the services referred to in subparagraph (ii), by the corporation not later than 60 days after the end of the corporation's taxation year in which principal photography of the production begins, to

(A) a BC-based individual, to the extent that the amount paid

(I) is attributable to services personally rendered by the individual for the production, or

(II) is attributable to and does not exceed the salary or wages of the individual's employees who are BC-based individuals for personally rendering services for the production,

(B) another corporation that is a taxable Canadian corporation, if all of the issued and outstanding shares of the capital stock of the corporation, except directors' qualifying shares, if any, belong to a BC-based individual and the activities of the corporation consist principally of the provision of that individual's services, to the extent that the amount paid is attributable to services rendered personally by the individual for the production,

(C) another corporation that is a taxable Canadian corporation, to the extent that the amount paid is attributable to and does not exceed the salary or wages of that corporation's employees who are BC-based individuals for personally rendering services for the production, or

(D) a partnership that is carrying on business in Canada, to the extent that the amount paid

(I) is attributable to services personally rendered for the production by a BC-based individual who is a member of the partnership, or

(II) is attributable to and does not exceed the salary or wages of the partnership's employees who are BC-based individuals for personally rendering services for the production;

(c) a reimbursement, other than a reimbursement that constitutes remuneration within the meaning of paragraph (b), made by the corporation to a second corporation (in this paragraph the "parent") of an expenditure that was made by the parent in respect of the production if

(i) the corporation is a wholly-owned subsidiary of the parent,

(ii) the parent is a taxable Canadian corporation,

(iii) the corporation and the parent have agreed that this paragraph applies in respect of the production,

(iv) the reimbursement is made by the corporation not later than 60 days after the end of the corporation's taxation year in which principal photography of the production begins, and

(v) the expenditure would have qualified for inclusion in the eligible BC scriptwriting expenditure of the corporation in respect of the production under paragraph (a) or (b) if the expenditure had been incurred by the corporation for the same purpose, and had been paid by the corporation at the same time and to the same person or partnership, as it was by the parent

but does not include

(d) an amount to which section 37 of the federal Act applies,

(e) an amount included in eligible salary and wages under section 134 (2) of this Act in respect of a tax credit claimed under that section by the corporation or by another corporation referred to in paragraph (b) or (c) of this definition,

(f) an amount that is not a cost of producing the production,

(g) without limiting paragraph (f), an amount in respect of advertising, marketing, promotion or market research, or

(h) an amount related in any way to another film or video production;

"script material" has the same meaning as in section 125.4 (1) of the federal Act.

(2) A corporation is eligible for a scriptwriting tax credit for a taxation year in respect of an eligible production if

(a) principal photography of the production begins in the taxation year,

(b) the corporation is eligible for, and has made or is making an application in accordance with section 85 for, a tax credit in relation to the production under section 80,

(c) the corporation has obtained a valid eligibility certificate issued to it under section 86 in respect of the production and the claimed tax credit, and

(d) the corporation makes application for the scriptwriting tax credit in accordance with section 85.

(3) The amount of the tax credit that may be claimed by a qualifying corporation under this section is 35% of the amount determined by the formula

SE − (TA + RE)
where
SEmeans the corporation's eligible BC scriptwriting expenditure in respect of the production,
TAmeans the total of all amounts of assistance that can reasonably be considered to be in respect of SE that, at the time of filing of the corporation's return of income for the taxation year,
(a)the corporation or any other person or partnership has received, is entitled to receive or can reasonably be expected to receive,
(b)has not been repaid under a legal obligation to do so, and
(c)has not otherwise reduced SE, and
REmeans the total of the expenditures directly attributable to the production
(a)that are included in SE, and
(b)for which reimbursement is to be or has been provided to the corporation, as a parent within the meaning of paragraph (c) of the definition of "eligible BC scriptwriting expenditure", in respect of the production under an agreement referred to in that paragraph.

Regional tax credit if principal photography begins before April 1, 2003

81   (1) A corporation is eligible for a regional tax credit for a taxation year in respect of an eligible production if

(a) principal photography of the production begins

(i) before the end of the taxation year,

(ii) after March 31, 1998, and

(iii) before April 1, 2003,

(b) the production is completed within 24 months after the end of the corporation's taxation year in which the principal photography of the production began,

(c) the corporation is, throughout the taxation year in respect of which the tax credit is claimed, an eligible production corporation that is Canadian-controlled,

(d) principal photography of the production, or, in the case of a production that is intended for television broadcast as a series and that comprises a cycle of at least 3 episodes, principal photography of at least 3 of those episodes (the "qualifying episodes"), is done in British Columbia outside of the designated Vancouver area during at least 85% of the total number of days during which principal photography of the production or the qualifying episodes, as the case may be, is done,

(e) throughout the period during which principal photography of the production or of the qualifying episodes, as the case may be, is done in British Columbia outside of the designated Vancouver area, the corporation has a production office that is located in British Columbia outside of the designated Vancouver area,

(f) the corporation has obtained a valid eligibility certificate issued to it under section 86 in respect of the production and the claimed tax credit, and

(g) the corporation makes application for the regional tax credit in accordance with section 85.

(2) The amount of the tax credit that may be claimed by a qualifying corporation under this section is

(a) subject to paragraph (b), 12.5% of the corporation's qualified BC labour expenditure for the taxation year in respect of the production, or

(b) for a film or video production referred to in subsection (1) (d) that is intended for television broadcast as a series, 12.5% of the corporation's qualified BC labour expenditure for the taxation year in respect of the qualifying episodes referred to in that provision.

Regional tax credit if principal photography begins after March 31, 2003

81.1   (1) A corporation is eligible for a regional tax credit under subsection (2) for a taxation year in respect of an eligible production if

(a) the corporation is eligible for, and has made or is making an application in accordance with section 85 for, a tax credit in relation to the production under section 80,

(b) principal photography of the production begins after March 31, 2003 and, if the production is an animation production, principal photography of the production does not begin after June 26, 2015,

(c) principal photography of the production, or, in the case of a production that is intended for television broadcast as a series and that comprises a cycle of at least 3 episodes, principal photography of at least 3 of those episodes (the "qualifying episodes"), is done in British Columbia outside of the designated Vancouver area

(i) for at least 5 days, and

(ii) during more than 50% of the total number of days during which principal photography of the production or the qualifying episodes, as the case may be, is done in British Columbia,

(d) the corporation has obtained a valid eligibility certificate issued to it under section 86 in respect of the production and the claimed tax credit, and

(e) the corporation makes application for the regional tax credit in accordance with section 85.

(2) The amount of the tax credit that may be claimed by a qualifying corporation under this subsection is,

(a) subject to paragraph (b), 12.5% of the amount determined by the formula

where
QLEis the corporation's qualified BC labour expenditure for the taxation year in respect of the production,
RDis the number of days during which principal photography of the production is done in British Columbia outside of the designated Vancouver area, and
TDis the number of days during which principal photography of the production is done in British Columbia, or

(b) for a film or video production referred to in subsection (1) (c) that is intended for television broadcast as a series, 12.5% of the amount determined by the formula

where
QLEis the corporation's qualified BC labour expenditure for the taxation year in respect of the qualifying episodes referred to in subsection (1) (c),
RDis the number of days during which principal photography of the qualifying episodes is done in British Columbia outside of the designated Vancouver area, and
TDis the number of days during which principal photography of the qualifying episodes is done in British Columbia.

(3) For the purpose of determining the amount of the tax credit under subsection (2), the references to "March 31, 1998" in the definition of "BC labour expenditure" in section 79 (1) must be read as "December 31, 2002".

(4) A corporation is eligible for a regional tax credit under subsection (5) for a taxation year in respect of an eligible production that is an animation production if

(a) the corporation is eligible for, and has made or is making an application in accordance with section 85 for, a tax credit in relation to the production under section 80,

(b) principal photography of the production begins after June 26, 2015,

(c) the corporation has obtained a valid eligibility certificate issued to it under section 86 in respect of the production and the claimed tax credit, and

(d) the corporation makes application for the regional tax credit in accordance with section 85.

(5) The amount of the tax credit that may be claimed by a qualifying corporation under this subsection is 12.5% of the amount determined by the formula

QLE xRLE

TLE
where
QLEis the corporation's qualified BC labour expenditure for the taxation year in respect of the animation production,
RLEis the corporation's BC labour expenditure for the taxation year that is in respect of the animation production and in respect of services rendered in British Columbia outside of the designated Vancouver area, and
TLEis the corporation's BC labour expenditure for the taxation year in respect of the animation production.

Distant location regional tax credit

81.11   (1) A corporation is eligible for a distant location regional tax credit under subsection (2) for a taxation year in respect of an eligible production if

(a) the corporation is eligible for, and has made or is making an application in accordance with section 85 for, a tax credit in relation to the production under sections 80 and 81.1,

(b) principal photography of the production begins after February 19, 2008 and, if the production is an animation production, principal photography of the production does not begin after June 26, 2015,

(c) principal photography of the production, or, in the case of a production that is intended for television broadcast as a series and that comprises a cycle of at least 3 episodes, principal photography of 3 or more of those episodes, all of which are qualifying episodes referred to in section 81.1 (1) (c) (the "distant location qualifying episodes"), is done in a distant location for at least one day,

(d) the corporation has obtained a valid eligibility certificate issued to it under section 86 in respect of the production and the claimed tax credit, and

(e) the corporation makes application for the distant location regional tax credit in accordance with section 85.

(2) The amount of the tax credit that may be claimed by a qualifying corporation under this subsection is,

(a) subject to paragraph (b), 6% of the amount determined by the formula

where
QLEis the corporation's qualified BC labour expenditure for the taxation year in respect of the production,
DLDis the number of days during which principal photography of the production is done in a distant location, and
TDis the number of days during which principal photography of the production is done in British Columbia, or

(b) for a film or video production referred to in subsection (1) (c) that is intended for television broadcast as a series, 6% of the amount determined by the formula

where
QLEis the corporation's qualified BC labour expenditure for the taxation year in respect of the distant location qualifying episodes referred to in subsection (1) (c),
DLDis the number of days during which principal photography of the distant location qualifying episodes is done in a distant location, and
TDis the number of days during which principal photography of the distant location qualifying episodes is done in British Columbia.

(3) For the purpose of determining the amount of the tax credit under subsection (2), the references to "March 31, 1998" in the definition of "BC labour expenditure" in section 79 (1) must be read as "December 31, 2007".

(4) A corporation is eligible for a distant location regional tax credit under subsection (5) for a taxation year in respect of an eligible production that is an animation production if

(a) the corporation is eligible for, and has made or is making an application in accordance with section 85 for, a tax credit in relation to the production under sections 80 and 81.1,

(b) principal photography of the production begins after June 26, 2015,

(c) the corporation has obtained a valid eligibility certificate issued to it under section 86 in respect of the production and the claimed tax credit, and

(d) the corporation makes application for the distant location regional tax credit in accordance with section 85.

(5) The amount of the tax credit that may be claimed by a qualifying corporation under this subsection is 6% of the amount determined by the formula

QLE xDLLE

TLE
where
QLEis the corporation's qualified BC labour expenditure for the taxation year in respect of the animation production,
DLLEis the corporation's BC labour expenditure for the taxation year that is in respect of the animation production and in respect of services rendered in a distant location, and
TLEis the corporation's BC labour expenditure for the taxation year in respect of the animation production.

Digital animation, visual effects and post-production tax credit

81.2   (1) A corporation is eligible for a digital animation, visual effects and post-production tax credit for a taxation year in respect of an eligible production if

(a) the corporation is eligible for, and has made or is making an application in accordance with section 85 for, a tax credit in relation to the production under section 80,

(b) principal photography of the production begins after March 31, 2003,

(c) the corporation has obtained a valid eligibility certificate issued to it under section 86 in respect of the production and the claimed tax credit, and

(d) the corporation makes application for the digital animation, visual effects and post-production tax credit in accordance with section 85.

(2) Subject to subsection (3), the amount of the tax credit that may be claimed by a qualifying corporation under this section in respect of an eligible production is 15% of the amount determined by the formula

ALE − (TA + PA + ARE)
where
ALEmeans the total of the corporation's BC labour expenditure for the taxation year and for each of the preceding taxation years directly attributable to prescribed digital animation or visual effects activities for the production,
TAmeans the total of all amounts of assistance that can reasonably be considered to be in respect of ALE that, at the time of filing of the corporation's return of income for the taxation year,
(a)the corporation or any other person or partnership has received, is entitled to receive or can reasonably be expected to receive,
(b)has not been repaid under a legal obligation to do so, and
(c)has not otherwise reduced ALE,
PAmeans the total of all amounts determined by this formula in respect of the production for each of the preceding taxation years before the end of which principal photography of the production began, and
AREmeans the total of the expenditures directly attributable to the production
(a)that are included in ALE, and
(b)for which reimbursement is to be or has been provided to the corporation, as a parent within the meaning of paragraph (c) of the definition of "BC labour expenditure", in respect of the production under an agreement referred to in that paragraph.

(3) For a qualifying corporation to claim a tax credit in the amount determined under subsection (2) in respect of an eligible production, the following rules apply:

(a) in addition to the other requirements in subsection (1), principal photography of the production must begin before the date prescribed for the purposes of this paragraph;

(b) the references to "March 31, 1998" in the definition of "BC labour expenditure" in section 79 (1) must be read as "December 31, 2002".

(4) In addition to the tax credit that may be claimed under subsection (2) but subject to subsection (5), the amount of the tax credit that may be claimed by a qualifying corporation under this section is 2.5% of the amount determined by the formula in subsection (2).

(5) For a qualifying corporation to claim a tax credit in the amount determined under subsection (4) in respect of an eligible production, the following rules apply:

(a) in addition to the other requirements in subsection (1), principal photography of the production must begin

(i) after February 28, 2010, and

(ii) before the date prescribed for the purposes of subsection (3) (a);

(b) the references to "March 31, 1998" in the definition of "BC labour expenditure" in section 79 (1) must be read as "February 28, 2010".

(6) In addition to the tax credits that may be claimed under subsections (2) and (4) but subject to subsection (7), the amount of the tax credit that may be claimed by a qualifying corporation under this section in respect of an eligible production is 17.5% of the amount determined by the formula

ALE − (TA + PA + ARE)
where
ALEmeans the total of the corporation's BC labour expenditure for the taxation year and for each of the preceding taxation years directly attributable to prescribed digital post-production activities for the production,
TAmeans the total of all amounts of assistance that can reasonably be considered to be in respect of ALE that, at the time of filing of the corporation's return of income for the taxation year,
(a)the corporation or any other person or partnership has received, is entitled to receive or can reasonably be expected to receive,
(b)has not been repaid under a legal obligation to do so, and
(c)has not otherwise reduced ALE,
PAmeans the total of all amounts determined by this formula in respect of the production for each of the preceding taxation years before the end of which principal photography of the production began, and
AREmeans the total of the expenditures directly attributable to the production
(a)that are included in ALE, and
(b)for which reimbursement is to be or has been provided to the corporation, as a parent within the meaning of paragraph (c) of the definition of "BC labour expenditure", in respect of the production under an agreement referred to in that paragraph.

(7) For a qualifying corporation to claim a tax credit in the amount determined under subsection (6) in respect of an eligible production, the following rules apply:

(a) in addition to the other requirements in subsection (1), principal photography of the production must begin

(i) after February 28, 2015, and

(ii) before the date prescribed for the purposes of subsection (3) (a);

(b) the references to "March 31, 1998" in the definition of "BC labour expenditure" in section 79 (1) must be read as "February 28, 2015".

(8) Subject to subsection (9), the amount of the tax credit that may be claimed by a qualifying corporation under this section in respect of an eligible production is 11% of the amount determined by the formula

ALE − (TA + PA + ARE)
where
ALEmeans the total of the corporation's BC labour expenditure for the taxation year and for each of the preceding taxation years directly attributable to eligible activities for the production,
TAmeans the total of all amounts of assistance that can reasonably be considered to be in respect of ALE that, at the time of filing of the corporation's return of income for the taxation year,
(a)the corporation or any other person or partnership has received, is entitled to receive or can reasonably be expected to receive,
(b)has not been repaid under a legal obligation to do so, and
(c)has not otherwise reduced ALE,
PAmeans the total of all amounts determined by this formula in respect of the production for each of the preceding taxation years before the end of which principal photography of the production began, and
AREmeans the total of the expenditures directly attributable to the production
(a)that are included in ALE, and
(b)for which reimbursement is to be or has been provided to the corporation, as a parent within the meaning of paragraph (c) of the definition of "BC labour expenditure", in respect of the production under an agreement referred to in that paragraph.

(9) For a qualifying corporation to claim a tax credit in the amount determined under subsection (8) in respect of an eligible production, the following rules apply:

(a) in addition to the other requirements in subsection (1), principal photography of the production must begin on or after the date prescribed for the purposes of subsection (3) (a);

(b) in the case of eligible activities that are prescribed digital post-production activities, the references to "March 31, 1998" in the definition of "BC labour expenditure" in section 79 (1) must be read as "February 28, 2015".

(10) In addition to the tax credit that may be claimed under subsection (8) but subject to subsection (11), the amount of the tax credit that may be claimed by a qualifying corporation under this section in respect of an eligible production is the prescribed percentage, if any, of the amount determined by the formula in subsection (8).

(11) For a qualifying corporation to claim a tax credit in the amount determined under subsection (10) in respect of an eligible production, the following rules apply:

(a) in addition to the other requirements in subsection (1),

(i) the corporation must be eligible for a tax credit in respect of the production under subsection (8), and

(ii) principal photography of the production must begin

(A) on or after the date prescribed for the purposes of this clause, and

(B) before the date prescribed for the purposes of this clause,

in respect of the prescribed percentage referred to in subsection (10);

(b) in the case of eligible activities that are prescribed digital post-production activities, the references to "March 31, 1998" in the definition of "BC labour expenditure" in section 79 (1) must be read as "February 28, 2015".

Film training tax credit

82   (1) A corporation is eligible for a film training tax credit for a taxation year in respect of an eligible production if

(a) the corporation is eligible for, and has made or is making an application in accordance with section 85 for, a tax credit in relation to the production under one or both of sections 80 and 81,

(b) one or more BC-based individuals are participating as trainees in an approved training program in relation to the production,

(c) the corporation has obtained a valid eligibility certificate issued to it under section 86 in respect of the production and the claimed tax credit, and

(d) the corporation makes application for the film training tax credit in accordance with section 85.

(2) The amount of the tax credit that may be claimed by a qualifying corporation under this section is the lesser of

(a) 3% of the qualified BC labour expenditure of the corporation for the taxation year in respect of the production, and

(b) 30% of the amount by which the payments attributable to training exceed the amount of assistance that the corporation has received, is entitled to receive or can reasonably be expected to receive for that taxation year in relation to

(i) the approved training program, or

(ii) the trainees referred to in subsection (1) (b).

(3) For the purposes of subsection (2) (b), "payments attributable to training" means the salary or wages and remuneration paid

(a) by the corporation,

(b) to the trainees referred to in subsection (1) (b),

(c) in the taxation year, and

(d) in respect of the period during which the trainees to whom the salary or wages or remuneration was paid were participating as trainees in the approved training program in relation to the production.

Production services tax credit

82.1   (1) A corporation is eligible for a production services tax credit for a taxation year in respect of an accredited production if

(a) principal photography for the production begins

(i) before the end of the taxation year, and

(ii) after May 31, 1998,

(iii) [Repealed 2009-4-27.]

(b) the corporation is an accredited production corporation in respect of the production for the taxation year,

(b.1) the corporation has given notice to the certifying authority in accordance with section 84.1 in respect of the production, unless section 84.1 (5) applies,

(c) the corporation has obtained an accreditation certificate issued under section 87.1 in respect of the production and the claimed tax credit, and

(d) the corporation applies for the tax credit in accordance with section 85.

(2) The amount of the tax credit that may be claimed by an accredited production corporation under this section is 11% of the accredited qualified BC labour expenditure of the corporation for the taxation year in respect of the accredited production.

(3) and (4) [Repealed 2003-6-8.]

(5) In addition to the tax credit that may be claimed under subsection (2) but subject to subsection (6), the amount of the tax credit that may be claimed by an accredited production corporation under this section is 7% of the accredited qualified BC labour expenditure of the corporation for the taxation year in respect of the accredited production.

(6) For an accredited production corporation to claim a tax credit in the amount determined under subsection (5) in respect of an accredited production, the following rules apply:

(a) in addition to the other requirements in subsection (1), principal photography of the production must begin

(i) after December 31, 2004, and

(ii) before the date prescribed for the purposes of this subparagraph;

(b) despite paragraph (a) in the definition of "accredited BC labour expenditure" in section 79 (1), the references to "March 31, 1998" in the definition of "BC labour expenditure" in section 79 (1) must be read as "December 31, 2004".

(7) In addition to the tax credits that may be claimed under subsections (2) and (5) but subject to subsection (8), the amount of the tax credit that may be claimed by an accredited production corporation under this section is 7% of the accredited qualified BC labour expenditure of the corporation for the taxation year in respect of the accredited production.

(8) For an accredited production corporation to claim a tax credit in the amount determined under subsection (7) in respect of an accredited production, the following rules apply:

(a) in addition to the other requirements in subsection (1), principal photography of the production must begin before the date prescribed for the purposes of subsection (6) (a) (ii);

(b) despite paragraph (a) in the definition of "accredited BC labour expenditure" in section 79 (1), the references to "March 31, 1998" in the definition of "BC labour expenditure" in section 79 (1) must be read as "December 31, 2007".

(9) In addition to the tax credits that may be claimed under subsections (2), (5) and (7) but subject to subsection (10), the amount of the tax credit that may be claimed by an accredited production corporation under this section is 8% of the accredited qualified BC labour expenditure of the corporation for the taxation year in respect of the accredited production.

(10) For an accredited production corporation to claim a tax credit in the amount determined under subsection (9) in respect of an accredited production, the following rules apply:

(a) in addition to the other requirements in subsection (1), principal photography of the production must begin

(i) after February 28, 2010, and

(ii) before the date prescribed for the purposes of subsection (6) (a) (ii);

(b) despite paragraph (a) in the definition of "accredited BC labour expenditure" in section 79 (1), the references to "March 31, 1998" in the definition of "BC labour expenditure" in section 79 (1) must be read as "February 28, 2010".

(11) In addition to the tax credit that may be claimed under subsection (2) but subject to subsection (12), the amount of the tax credit that may be claimed by an accredited production corporation under this section is the prescribed percentage, if any, of the accredited qualified BC labour expenditure of the corporation for the taxation year in respect of the accredited production.

(12) For an accredited production corporation to claim a tax credit in the amount determined under subsection (11) in respect of an accredited production, in addition to the other requirements in subsection (1),

(a) the corporation must not be eligible to claim a tax credit under any of subsections (5), (7) and (9) in respect of the production, and

(b) principal photography of the production must begin

(i) on or after the date prescribed for the purposes of this subparagraph, and

(ii) before the date prescribed for the purposes of this subparagraph,

in respect of the prescribed percentage referred to in subsection (11).

Regional production services tax credit

82.2   (1) A corporation is eligible for a regional production services tax credit under subsection (2) for a taxation year in respect of an accredited production if

(a) the corporation is eligible for, and has made or is making an application in accordance with section 85 for, a tax credit in relation to the production under section 82.1,

(b) principal photography of the production begins after March 31, 2003 and, if the production is an animation production, principal photography of the production does not begin after June 26, 2015,

(c) principal photography of the production is done in British Columbia outside of the designated Vancouver area

(i) for at least 5 days, and

(ii) during more than 50% of the total number of days during which principal photography of the production is done in British Columbia,

(c.1) the corporation has given notice to the certifying authority in accordance with section 84.1 in respect of the production, unless section 84.1 (5) applies,

(d) the corporation has obtained an accreditation certificate issued under section 87.1 in respect of the production and the claimed tax credit, and

(e) the corporation makes application for the regional production services tax credit in accordance with section 85.

(2) The amount of the tax credit that may be claimed by an accredited production corporation under this subsection is 6% of the amount determined by the formula

where
AQLEis the corporation's accredited qualified BC labour expenditure for the taxation year in respect of the accredited production,
RDis the number of days during which principal photography of the production is done in British Columbia outside of the designated Vancouver area, and
TDis the number of days during which principal photography of the production is done in British Columbia.

(3) For the purpose of determining the amount of the tax credit under subsection (2), the references to "March 31, 1998" in the definition of "BC labour expenditure" in section 79 (1) must be read as "December 31, 2002".

(4) A corporation is eligible for a regional production services tax credit under subsection (5) for a taxation year in respect of an accredited production that is an animation production if

(a) the corporation is eligible for, and has made or is making an application in accordance with section 85 for, a tax credit in relation to the production under section 82.1,

(b) principal photography of the production begins after June 26, 2015,

(b.1) the corporation has given notice to the certifying authority in accordance with section 84.1 in respect of the production, unless section 84.1 (5) applies,

(c) the corporation has obtained an accreditation certificate issued under section 87.1 in respect of the production and the claimed tax credit, and

(d) the corporation makes application for the regional production services tax credit in accordance with section 85.

(5) The amount of the tax credit that may be claimed by an accredited production corporation under this subsection is 6% of the amount determined by the formula

AQLE x
RLE̱
TLE
where
AQLEis the corporation's accredited qualified BC labour expenditure for the taxation year in respect of the animation production,
RLEis the corporation's accredited BC labour expenditure for the taxation year that is in respect of the animation production and in respect of services rendered in British Columbia outside of the designated Vancouver area, and
TLEis the corporation's accredited BC labour expenditure for the taxation year in respect of the animation production.

Distant location production services tax credit

82.21   (1) A corporation is eligible for a distant location production services tax credit under subsection (2) for a taxation year in respect of an accredited production if

(a) the corporation is eligible for, and has made or is making an application in accordance with section 85 for, a tax credit in relation to the production under sections 82.1 and 82.2,

(b) principal photography of the production begins after February 19, 2008 and, if the production is an animation production, principal photography of the production does not begin after June 26, 2015,

(c) principal photography of the production is done in a distant location for at least one day,

(c.1) the corporation has given notice to the certifying authority in accordance with section 84.1 in respect of the production, unless section 84.1 (5) applies,

(d) the corporation has obtained an accreditation certificate issued under section 87.1 in respect of the production and the claimed tax credit, and

(e) the corporation makes application for the distant location production services tax credit in accordance with section 85.

(2) The amount of the tax credit that may be claimed by an accredited production corporation under this subsection is 6% of the amount determined by the formula

where
AQLEis the corporation's accredited qualified BC labour expenditure for the taxation year in respect of the accredited production,
DLDis the number of days during which principal photography of the production is done in a distant location, and
TDis the number of days during which principal photography of the production is done in British Columbia.

(3) For the purpose of determining the amount of the tax credit under subsection (2), the references to "March 31, 1998" in the definition of "BC labour expenditure" in section 79 (1) must be read as "December 31, 2007".

(4) A corporation is eligible for a distant location production services tax credit under subsection (5) for a taxation year in respect of an accredited production that is an animation production if

(a) the corporation is eligible for, and has made or is making an application in accordance with section 85 for, a tax credit in relation to the production under sections 82.1 and 82.2,

(b) principal photography of the production begins after June 26, 2015,

(b.1) the corporation has given notice to the certifying authority in accordance with section 84.1 in respect of the production, unless section 84.1 (5) applies,

(c) the corporation has obtained an accreditation certificate issued under section 87.1 in respect of the production and the claimed tax credit, and

(d) the corporation makes application for the distant location production services tax credit in accordance with section 85.

(5) The amount of the tax credit that may be claimed by an accredited production corporation under this subsection is 6% of the amount determined by the formula

AQLE x
DLLE̱
TLE
where
AQLEis the corporation's accredited qualified BC labour expenditure for the taxation year in respect of the animation production,
DLLEis the corporation's accredited BC labour expenditure for the taxation year that is in respect of the animation production and in respect of services rendered in a distant location, and
TLEis the corporation's accredited BC labour expenditure for the taxation year in respect of the animation production.

Digital animation, visual effects and post-production services tax credit

82.3   (1) A corporation is eligible for a digital animation, visual effects and post-production services tax credit for a taxation year in respect of an accredited production if

(a) the corporation is eligible for, and has made or is making an application in accordance with section 85 for, a tax credit in relation to the production under section 82.1,

(b) principal photography for the production begins after March 31, 2003,

(b.1) the corporation has given notice to the certifying authority in accordance with section 84.1 in respect of the production, unless section 84.1 (5) applies,

(c) the corporation has obtained an accreditation certificate issued under section 87.1 in respect of the production and the claimed tax credit, and

(d) the corporation makes application for the digital animation, visual effects and post-production services tax credit in accordance with section 85.

(2) Subject to subsection (3), the amount of the tax credit that may be claimed by an accredited production corporation under this section is 15% of the amount of the corporation's accredited qualified BC labour expenditure for the taxation year directly attributable to prescribed digital animation or visual effects activities for the accredited production.

(3) For an accredited production corporation to claim a tax credit in the amount determined under subsection (2) in respect of an accredited production, the following rules apply:

(a) in addition to the other requirements in subsection (1), principal photography of the production must begin before the date prescribed for the purposes of this paragraph;

(b) despite paragraph (a) in the definition of "accredited BC labour expenditure" in section 79 (1), the references to "March 31, 1998" in the definition of "BC labour expenditure" in section 79 (1) must be read as "December 31, 2002".

(4) In addition to the tax credit that may be claimed under subsection (2) but subject to subsection (5), the amount of the tax credit that may be claimed by an accredited production corporation under this section is 2.5% of the amount of the corporation's accredited qualified BC labour expenditure for the taxation year directly attributable to prescribed digital animation or visual effects activities for the accredited production.

(5) For an accredited production corporation to claim a tax credit in the amount determined under subsection (4) in respect of an accredited production, the following rules apply:

(a) in addition to the other requirements in subsection (1), principal photography of the production must begin

(i) after February 28, 2010, and

(ii) before the date prescribed for the purposes of subsection (3) (a);

(b) despite paragraph (a) in the definition of "accredited BC labour expenditure" in section 79 (1), the references to "March 31, 1998" in the definition of "BC labour expenditure" in section 79 (1) must be read as "February 28, 2010".

(6) In addition to the tax credits that may be claimed under subsections (2) and (4) but subject to subsection (7), the amount of the tax credit that may be claimed by an accredited production corporation under this section is 17.5% of the amount of the corporation's accredited qualified BC labour expenditure for the taxation year directly attributable to prescribed digital post-production activities for the accredited production.

(7) For an accredited production corporation to claim a tax credit in the amount determined under subsection (6) in respect of an accredited production, the following rules apply:

(a) in addition to the other requirements in subsection (1), principal photography of the production must begin

(i) after February 28, 2015, and

(ii) before the date prescribed for the purposes of subsection (3) (a);

(b) despite paragraph (a) in the definition of "accredited BC labour expenditure" in section 79 (1), the references to "March 31, 1998" in the definition of "BC labour expenditure" in section 79 (1) must be read as "February 28, 2015".

(8) Subject to subsection (9), the amount of the tax credit that may be claimed by an accredited production corporation under this section is 11% of the amount of the corporation's accredited qualified BC labour expenditure for the taxation year directly attributable to eligible activities for the accredited production.

(9) For an accredited production corporation to claim a tax credit in the amount determined under subsection (8) in respect of an accredited production, the following rules apply:

(a) in addition to the other requirements in subsection (1), principal photography of the production must begin on or after the date prescribed for the purposes of subsection (3) (a);

(b) in the case of eligible activities that are prescribed digital post-production activities, despite paragraph (a) in the definition of "accredited BC labour expenditure" in section 79 (1), the references to "March 31, 1998" in the definition of "BC labour expenditure" in section 79 (1) must be read as "February 28, 2015".

(10) In addition to the tax credit that may be claimed under subsection (8) but subject to subsection (11), the amount of the tax credit that may be claimed by an accredited production corporation under this section is the prescribed percentage, if any, of the amount of the corporation's accredited qualified BC labour expenditure for the taxation year directly attributable to eligible activities for the accredited production.

(11) For an accredited production corporation to claim a tax credit in the amount determined under subsection (10) in respect of an accredited production, the following rules apply:

(a) in addition to the other requirements in subsection (1),

(i) the corporation must be eligible for a tax credit in respect of the production under subsection (8), and

(ii) principal photography of the production must begin

(A) on or after the date prescribed for the purposes of this clause, and

(B) before the date prescribed for the purposes of this clause,

in respect of the prescribed percentage referred to in subsection (10);

(b) in the case of eligible activities that are prescribed digital post-production activities, despite paragraph (a) in the definition of "accredited BC labour expenditure" in section 79 (1), the references to "March 31, 1998" in the definition of "BC labour expenditure" in section 79 (1) must be read as "February 28, 2015".

No credit available if section 17 deduction made

83   A corporation that has made a deduction in accordance with section 17 for a taxation year must not claim a tax credit under this Part for the same taxation year.

May not claim both accredited production and eligible production credits

83.1   (1) A corporation may not claim a tax credit in respect of the same production

(a) under one or more of sections 80 to 82, if an amount is deemed to have been paid under section 84 in relation to a tax credit under one or more of sections 82.1 to 82.3 in respect of the production, or

(b) under one or more of sections 82.1 to 82.3, if an amount is deemed to have been paid under section 84 in relation to a tax credit under one or more of sections 80 to 82 in respect of the production.

(2) Without limiting subsection (1), if an amount is deemed to have been paid under section 84 in relation to a tax credit under one or more of sections 80 to 82 in respect of any or all of the episodes of a cycle referred to in section 79 (2) (a), no tax credit may be claimed under one or more of sections 82.1 to 82.3 in respect of any episode of that cycle.

Deemed payment

84   A corporation that has claimed and is eligible for a tax credit under this Part for a taxation year is deemed to have paid, at the time referred to in section 157 (1) (b) of the federal Act, as that section relates to that taxation year, the amount of that credit on account of its tax payable under this Act.

Notice of intention to claim production services tax credit

84.1   (1) Subject to subsection (5), a corporation must notify the certifying authority of the corporation's intention to claim a credit under any of sections 82.1 to 82.3 in respect of an accredited production.

(2) For the purpose of subsection (1), the corporation must provide, in the form and manner required by the certifying authority, the information and records that the certifying authority requires in respect of the corporation and the production.

(3) The certifying authority may require notice under this section to be given to an advisory body designated under section 95.

(4) For the purposes of this Part, notice given as required under subsection (3) is deemed to be notice given to the certifying authority.

(5) Notice is not required under this section in respect of an accredited production if an amount that is an accredited BC labour expenditure is first incurred by the corporation in relation to the accredited production on or before June 30, 2020.

Application for tax credit

85   (1) A corporation that wishes to claim a tax credit under this Part in respect of a taxation year must file the following with its return of income under section 29 for that taxation year:

(a) in the case of a claim for a tax credit under sections 80 to 82,

(i) the eligibility certificate issued to the corporation under section 86 that is appropriate to

(A) the tax credit, and

(B) the film or video production in respect of which the claim is made, and

(ii) if the tax credit is claimed in respect of the taxation year in which the production is completed, the completion certificate issued to the corporation in respect of the production under section 87;

(b) in the case of a claim for a tax credit under sections 82.1 to 82.3, the accreditation certificate under section 87.1 that is appropriate to the film or video production in respect of which the claim is made;

(c) in all cases, an application for the tax credit in the form, and containing the information and records, required by the Commissioner of Income Tax.

(2) A corporation is not entitled to a tax credit under this Part in respect of a taxation year that begins before February 19, 2020 unless, within 36 months after the end of the taxation year, the corporation files the information and records required under subsection (1) for that tax credit.

(3) A corporation is not entitled to a tax credit under this Part in respect of a taxation year that begins on or after February 19, 2020 unless, within 18 months after the end of the taxation year, the corporation files the information and records required under subsection (1) for that tax credit.

Eligibility certificate

86   (1) A corporation that wishes to claim one or more of the tax credits referred to in sections 80 to 82 in respect of a film or video production must apply to the certifying authority for an eligibility certificate.

(2) A corporation referred to in subsection (1) must, with its application,

(a) pay an application fee of $200 to a person prescribed by the Lieutenant Governor in Council, and

(b) provide the information and records that the certifying authority requires in respect of the corporation and the production.

(3) On receiving an application under this section, the certifying authority must issue to the applicant corporation an eligibility certificate if the certifying authority is satisfied, on the basis of the information provided by the corporation and any other information available to the certifying authority, that the corporation will, on completion of the production, be entitled to receive a completion certificate under section 87 in respect of the production and the specified tax credits.

Completion certificate

87   (1) A corporation that has claimed or intends to claim a tax credit under sections 80 to 82 in respect of a film or video production must apply to the certifying authority for a completion certificate promptly after the completion of the production.

(2) A corporation referred to in subsection (1) must, with its application,

(a) pay an application fee to a person prescribed by the Lieutenant Governor in Council, and

(b) provide the information and records that the certifying authority requires in respect of the corporation and the production.

(2.1) The application fee payable under subsection (2) (a) by the corporation referred to in subsection (1) is the greatest of the following:

(a) $200;

(b) if the production is not a treaty co-production nor an interprovincial co-production, 0.06% of the cost of producing the production;

(c) if the production is a treaty co-production and is not an interprovincial co-production, 0.06% of the cost of producing the Canadian portion of the production;

(d) if the production is an interprovincial co-production, 0.06% of the cost of producing the British Columbia portion of the production.

(3) On receiving an application under this section, the certifying authority must issue to the applicant corporation a completion certificate if the certifying authority is satisfied, on the basis of the information provided by the corporation and any other information available to the certifying authority, that the corporation is eligible for the specified tax credits that have been and are being claimed by the corporation in respect of the production.

Accreditation certificate

87.1   (1) A corporation may apply to the certifying authority for an accreditation certificate in respect of a film or video production for the purposes of claiming a tax credit referred to in sections 82.1 to 82.3.

(2) A corporation referred to in subsection (1) must, with its application,

(a) pay an application fee of $10 000 to a person prescribed by the Lieutenant Governor in Council, and

(b) provide the information and records that the certifying authority requires in respect of the production.

(3) On receiving an application under this section, the certifying authority must issue to the applicant corporation an accreditation certificate in respect of a production if the certifying authority

(a) received notice in accordance with section 84.1 of the corporation's intention to claim the credit, unless section 84.1 (5) applies, and

(b) is satisfied, on the basis of the information provided by the corporation and any other information available to the certifying authority, that the production is an accredited production.

Amendments to certificates

87.2   The certifying authority may amend a certificate issued under section 86, 87 or 87.1 in respect of a production upon payment, by the corporation to whom the certificate was issued, of $200 to a person prescribed by the Lieutenant Governor in Council.

When notice deemed not to have been given

87.3   (1) This section applies if the certifying authority, the Commissioner of Income Tax or the minister is satisfied that a corporation knowingly or in circumstances of gross negligence made a false statement or omission in giving notice under section 84.1.

(2) If a determination is made under subsection (1),

(a) notice under section 84.1 is deemed never to have been given,

(b) a certificate issued under section 87.1, if any, is revoked, and

(c) the certifying authority, the Commissioner of Income Tax or the minister, as applicable, must give notice of the determination in accordance with subsection (3).

(3) For the purposes of subsection (2) (c), the notice of determination must

(a) include the reasons for the determination and whether a certificate issued under section 87.1 was revoked, and

(b) be given as follows:

(i) if given by the certifying authority, to the corporation, the Commissioner of Income Tax and the minister;

(ii) if given by the Commissioner of Income Tax, to the corporation, the certifying authority and the minister;

(iii) if given by the minister, to the corporation, the certifying authority and the Commissioner of Income Tax.

Revocation of certificates

88   (1) A certificate may be revoked by the certifying authority, the Commissioner of Income Tax or the minister if,

(a) in the case of a certificate issued under section 86, 87 or 87.1,

(i) an omission or incorrect statement was made for the purpose of obtaining the certificate,

(ii) the corporation to which the certificate was issued does not meet the eligibility requirements for one or more of the tax credits to which the certificate relates, or

(iii) the production in respect of which the certificate was issued does not meet the eligibility requirements for one or more of the tax credits to which the certificate relates, or

(b) in the case of an eligibility certificate issued to a corporation under section 86 in respect of a production,

(i) a completion certificate is not issued under section 87 in respect of the production

(A) within 30 months after the end of the corporation's taxation year in which the principal photography of the production began, or

(B) within any later period that the certifying authority, the Commissioner of Income Tax or the minister may, in writing, provide in relation to a reconsideration being undertaken under section 92 (1) or that the court may order on an appeal brought in accordance with section 92 (2) and (3), or

(ii) a completion certificate issued to the corporation under section 87 in respect of the production is revoked.

(2) A certificate that is revoked by the certifying authority, the Commissioner of Income Tax or the minister is deemed never to have been issued.

Notice of refusal or revocation

89   (1) If the certifying authority refuses to issue a certificate for which application is made under section 86, 87 or 87.1, the certifying authority must promptly give notice of that refusal, together with reasons for the refusal, to the applicant corporation.

(2) If the certifying authority revokes a certificate issued under section 86, 87 or 87.1, the certifying authority must promptly give notice of that revocation, together with reasons for the revocation, to the applicant corporation, the Commissioner of Income Tax and the minister.

(3) If the minister revokes a certificate issued under section 86, 87 or 87.1, that minister must promptly give notice of that revocation, together with reasons for the revocation, to the applicant corporation, the Commissioner of Income Tax and the certifying authority.

(4) If the Commissioner of Income Tax revokes a certificate issued under section 86, 87 or 87.1, the Commissioner of Income Tax must promptly give notice of that revocation, together with reasons for the revocation, to the applicant corporation, the certifying authority and the minister.

Tax credit must be reimbursed

90   Without limiting any provision of this Act or the federal Act, if a corporation has claimed a tax credit under this Part in respect of a film or video production and is, under section 84 of this Act, deemed for a taxation year to have paid the amount of the tax credit on account of its tax payable under this Act, the amount of the tax credit must be repaid, and is, together with interest from the time referred to in section 157 (1) (b) of the federal Act, as that section relates to that taxation year, a debt of the corporation due to the Provincial government, if

(a) the eligibility certificate issued to the corporation under section 86 in respect of that tax credit has been revoked without another eligibility certificate having been issued in replacement,

(b) a completion certificate is not issued to the corporation under section 87 in respect of that tax credit

(i) within 30 months after the end of the corporation's taxation year in which the principal photography of the production began, or

(ii) within any later period that the certifying authority, the Commissioner of Income Tax or the minister may, in writing, provide in relation to a reconsideration being undertaken under section 92 (1) or that the court may order on an appeal brought in accordance with section 92 (2) and (3),

(c) a completion certificate issued to the corporation under section 87 in respect of the production is revoked without another completion certificate having been issued in replacement,

(c.1) an accreditation certificate issued under section 87.1 in respect of the production is revoked without another accreditation certificate having been issued in replacement, or

(d) the corporation is not otherwise entitled to the tax credit.

Recovery of debt

91   (1) Without limiting any provision of this Act or the federal Act, for the purpose of recovering a debt due to the Provincial government under this Part, the Commissioner of Income Tax may

(a) issue a certificate stating

(i) that the amount is due,

(ii) the amount remaining unpaid, including interest, and

(iii) the name of the person required to pay it, and

(b) file the certificate with the Supreme Court.

(2) A certificate filed under subsection (1) with the Supreme Court is of the same effect, and proceedings may be taken on it, as if it were a judgment of the Supreme Court for the recovery of a debt in the amount stated against the person named in it.

Reconsiderations and certification appeals

92   (1) Any decision or determination made under this Part by or on behalf of the certifying authority or the minister or any decision or determination made under section 87.3 or 88 by or on behalf of the Commissioner of Income Tax may be reconsidered and confirmed, reversed or varied by or on behalf of that person.

(2) Without limiting any provision of this Act or the federal Act, a corporation may appeal, in accordance with subsection (3), any of the following:

(a) a decision of the certifying authority to issue or to refuse to issue a certificate under this Part;

(a.1) a determination of the certifying authority, the Commissioner of Income Tax or the minister made under section 87.3;

(b) a decision of the certifying authority, the Commissioner of Income Tax or the minister to revoke a certificate issued under this Part;

(c) the failure of the certifying authority to issue or to refuse to issue a completion certificate under this Part within 30 months after the end of the corporation's taxation year in which the principal photography of the production began, if the application for the certificate was made as soon as was reasonably practicable in the circumstances.

(3) An appeal must be brought in the Supreme Court, by way of a petition proceeding,

(a) in the case of an appeal brought under subsection (2) (a), (a.1) or (b), within 120 days after the date of any notice of the decision or determination provided by the certifying authority, the Commissioner of Income Tax or the minister, or

(b) in the case of an appeal brought under subsection (2) (c), within 120 days after the date that is 30 months after the end of the corporation's taxation year in which the principal photography of the production began.

Powers of audit

93   Without limiting any provision of this Act or the federal Act, for the purpose of determining whether a corporation is eligible for a tax credit under this Part, the Commissioner of Income Tax has powers equivalent to the federal minister under sections 230 (3), 231, 231.1, 233 (1) and 236 of the federal Act, and for that purpose those sections apply.

Minister and Commissioner may require information regarding certificates

94   (1) The minister is entitled to obtain

(a) from the certifying authority and the Commissioner of Income Tax any information required by the minister respecting determinations made by the certifying authority or the Commissioner of Income Tax, as applicable, under section 87.3,

(a.1) from the certifying authority any information required by the minister respecting notices received under section 84.1 or certificates issued, refused or revoked by the certifying authority, and

(b) from the Commissioner of Income Tax any information required by the minister respecting certificates revoked by the Commissioner of Income Tax.

(2) The Commissioner of Income Tax is entitled to obtain from the certifying authority any information required by the Commissioner of Income Tax respecting

(a) notices received under section 84.1 by the certifying authority,

(b) determinations made under section 87.3 by the certifying authority, or

(c) certificates issued, refused or revoked by the certifying authority.

Collection and sharing of information

95   (1) The certifying authority or the Provincial minister may designate any person or body as an advisory body for the purposes of this Part.

(2) Without limiting any provision of this or any other enactment, the certifying authority, the Provincial minister, the federal minister, if a collection agreement is in effect, and any advisory body designated under subsection (1) may

(a) collect any information that is relevant to an applicant's eligibility for a tax credit being claimed or already claimed under this Part, and

(b) share with each other, in accordance with an information-sharing agreement entered into in accordance with section 65, any information respecting an application, an applicant or any other person if the information is relevant to a tax credit being claimed or already claimed under this Part.

Power to make regulations

96   (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 as follows:

(a) defining any word or expression used in this Part or in any regulations made under this Part;

(b) determining and allocating Canadian content points for the purposes of the definition of "eligible production";

(c) prescribing one or more persons to whom fees payable under or by virtue of this Part, including fees for certificates issued under this Part, must be paid;

(d) prescribing the boundaries for the designated Vancouver area;

(e) prescribing as a distant location an area of British Columbia that is outside of the designated Vancouver area.

(2.1) Without limiting subsection (1), the Lieutenant Governor in Council may make regulations as follows:

(a) prescribing a date for the purposes of section 81.2 (3) (a);

(b) prescribing a percentage, not exceeding 9%, for the purposes of section 81.2 (10), including prescribing different percentages for eligible productions for which principal photography begins before, on or after different dates;

(c) prescribing a date for the purposes of section 81.2 (11) (a) (ii) (A) in respect of a percentage prescribed under paragraph (b) of this subsection;

(d) prescribing a date for the purposes of section 81.2 (11) (a) (ii) (B) in respect of a percentage prescribed under paragraph (b) of this subsection.

(2.2) Without limiting subsection (1), the Lieutenant Governor in Council may make regulations as follows:

(a) prescribing a date for the purposes of section 82.1 (6) (a) (ii);

(b) prescribing a percentage, not exceeding 22%, for the purposes of section 82.1 (11), including prescribing different percentages for accredited productions for which principal photography begins before, on or after different dates;

(c) prescribing a date for the purposes of section 82.1 (12) (b) (i) in respect of a percentage prescribed under paragraph (b) of this subsection;

(d) prescribing a date for the purposes of section 82.1 (12) (b) (ii) in respect of a percentage prescribed under paragraph (b) of this subsection.

(2.3) Without limiting subsection (1), the Lieutenant Governor in Council may make regulations as follows:

(a) prescribing a date for the purposes of section 82.3 (3) (a);

(b) prescribing a percentage, not exceeding 9%, for the purposes of section 82.3 (10), including prescribing different percentages for accredited productions for which principal photography begins before, on or after different dates;

(c) prescribing a date for the purposes of section 82.3 (11) (a) (ii) (A) in respect of a percentage prescribed under paragraph (b) of this subsection;

(d) prescribing a date for the purposes of section 82.3 (11) (a) (ii) (B) in respect of a percentage prescribed under paragraph (b) of this subsection.

(3) Regulations that may be made under this Part, other than under subsections (2.1), (2.2) and (2.3), may be made retroactive to April 1, 1998 or a later date that the Lieutenant Governor in Council may determine, and a regulation made retroactive is deemed to come into force on the date specified in the regulation.

Part 6 — British Columbia Scientific Research and Experimental Development Tax Credit

Definitions

97   In this Part:

"BC qualified expenditure" incurred by a qualifying corporation in a taxation year means an amount that is a qualified expenditure, to the extent that the expenditure is

(a) incurred in the taxation year by the corporation in respect of scientific research and experimental development carried on in British Columbia,

(b) incurred after August 31, 1999 and before September 1, 2022, and

(c) incurred at a time when the corporation has a permanent establishment in British Columbia,

but does not include

(d) the corporation's share of an expenditure incurred by a partnership or by a trust of which the corporation is a beneficiary,

(e) a type or class of expenditure prescribed by regulation, and

(f) an expenditure incurred by the corporation in the course of earning income in the taxation year if any of the income is exempt income, as defined in section 248 (1) of the federal Act, or is exempt from tax under Part 1 of the federal Act;

"designated assistance" means

(a) any non-government assistance or contract payment, as these terms are defined in section 127 (9) of the federal Act, and

(b) government assistance defined in this section;

"eligible repayment" of a qualifying corporation in a taxation year means the total of all amounts of designated assistance repaid in the taxation year by the corporation, or deemed repaid in that taxation year under section 127 (10.8) of the federal Act, to the extent that

(a) each of the amounts can reasonably be considered a repayment of designated assistance that, in the taxation year or a previous taxation year, the corporation received, was entitled to receive or could reasonably have been expected to receive, in respect of a BC qualified expenditure, and

(b) by the operation of paragraph (h) of the definition of "qualified expenditure" in section 127 (9) of the federal Act, the designated assistance reduced an amount of a BC qualified expenditure in the taxation year or a previous taxation year;

"first term shared-use-equipment" has the same meaning as in section 127 (9) of the federal Act;

"government assistance" means assistance from a government, municipality or other public authority, whether as a grant, subsidy, forgivable loan, deduction from tax, investment allowance or as any other form of assistance, but does not include

(a) an amount deemed to have been paid under section 98 (2),

(b) a deduction under section 99 (2), or

(c) a deduction under section 127 (5) or (6) of the federal Act;

"partnership amount" means the amount referred to in section 99.1 (1) (a);

"permanent establishment", in relation to a partnership, has the same meaning as in section 8201 of the Income Tax Regulations (Canada) except that section is to be read without reference to the text after paragraph (e);

"qualified expenditure" has the same meaning as in the definition of "qualified expenditure" in section 127 (9) of the federal Act except that in reading section 127 (18) to (20) of the federal Act for the purpose of computing the amount to be excluded in paragraph (h) of that definition, the references to government assistance are to be read as references to government assistance as defined in this section;

"qualifying corporation", for a taxation year, means a corporation that has a permanent establishment in British Columbia at any time during that taxation year, but does not include a corporation that

(a) is exempt from tax under section 27,

(b) is controlled directly or indirectly in any manner whatever by one or more persons all or part of whose taxable income is exempt from tax under section 27 of this Act or under Part 1 of the federal Act,

(c) is an employee venture capital corporation registered under section 8 of the Employee Investment Act,

(d) is a small business venture capital corporation registered under section 3 of the Small Business Venture Capital Act, or

(e) is of a type or class of corporation prescribed by regulation;

"scientific research and experimental development" has the same meaning as in section 248 (1) of the federal Act;

"second term shared-use-equipment" has the same meaning as in section 127 (9) of the federal Act;

"SR&ED qualified BC expenditure" of a qualifying corporation in a taxation year means the total of the following:

(a) the total of all BC qualified expenditures incurred by the corporation in the taxation year;

(b) the corporation's eligible repayment for that taxation year.

Interpretation — taxation year of partnerships

97.1   Sections 102.11, 102.4 and 102.6 apply to a partnership as if the partnership's fiscal period were its taxation year.

Refundable tax credit available

98   (1) Subject to section 103, a qualifying corporation that is a Canadian-controlled private corporation carrying on scientific research and experimental development in British Columbia during a taxation year may claim a tax credit for the taxation year under this Part equal to 10% of the lesser of

(a) the corporation's SR&ED qualified BC expenditure for the taxation year, and

(b) the corporation's expenditure limit as defined in section 127 (10.2) of the federal Act for the taxation year.

(2) A corporation that is eligible for and has claimed a tax credit under subsection (1) for a taxation year is deemed to have paid, at the time referred to in section 157 (1) (b) of the federal Act as that section relates to the taxation year, the amount of that credit on account of its tax payable under this Act.

Non-refundable tax credit available

99   (1) [Repealed 2007-2-34.]

(2) Subject to section 103, a qualifying corporation may deduct from its tax otherwise payable for a taxation year ending after August 31, 1999, an amount equal to the lesser of

(a) the amount determined at the end of the taxation year under subsection (3), and

(b) the amount of tax that would otherwise be payable but for that credit.

(3) The amount eligible for deduction under subsection (2) (a) at the end of the taxation year is an amount equal to the total of the following:

(a) the corporation's annual non-refundable tax credit for that taxation year;

(b) the total of the corporation's annual non-refundable tax credits for the 10 taxation years immediately preceding, less any of those amounts that were previously deducted by the corporation under subsection (2);

(c) the total of the corporation's annual non-refundable tax credits for the 3 taxation years immediately following, less any of those amounts that were previously deductible by the corporation under subsection (2) for the subsequent year.

(3.1) A qualifying corporation's annual non-refundable tax credit for a taxation year is the amount by which the total of

(a) 10% of the corporation's SR&ED qualified BC expenditure in the taxation year, and

(b) the amount equal to the total of all amounts each of which is an appropriate portion determined under section 99.1 in respect of a partnership of which the corporation was a member in the taxation year as provided for in that section,

exceeds the total of

(c) any amount deemed to have been paid under section 98 (2) for that year by the corporation, and

(d) any amount renounced under section 100 for that year by the corporation.

(4) If the qualifying corporation is a corporation described in paragraph (j) or (k) of the definition of "investment tax credit" in section 127 (9) of the federal Act, the net amount determined under subsection (3) (b) and (c) of this section must be reduced by the proportion described in section 127 (9.1) (d) or (9.2) (d) of the federal Act, as the case may be.

Credit amount in respect of a partnership

99.1   (1) If in a taxation year a qualifying corporation is a member of a partnership, other than a specified member as defined in section 248 (1) of the federal Act, the qualifying corporation may claim for the taxation year the appropriate portion of the amount by which

(a) the amount equal to 10% of the SR&ED qualified BC expenditure of the partnership for its taxation year ending in the taxation year of the corporation

exceeds the total of

(b) the amount equal to the total of all amounts each of which is an amount determined under section 102.11 (2) for the partnership for its taxation year ending in the taxation year of the corporation, and

(c) the amount equal to the total of all amounts each of which is an amount determined under section 102.4 (2) for the partnership for its taxation year ending in the taxation year of the corporation.

(2) For the purpose of determining the amount that a qualifying corporation may claim under subsection (1) in respect of a partnership, the following rules apply:

(a) in section 97 [definitions], in the definitions of "BC qualified expenditure", "eligible repayment" and "SR&ED qualified BC expenditure",

(i) the references to "qualifying corporation" and "corporation" are to be read as "partnership", and

(ii) the references to "corporation's" are to be read as "partnership's";

(b) in section 97, in the definition of "BC qualified expenditure",

(i) the reference in paragraph (b) to "August 31, 1999" is to be read as "February 20, 2007", and

(ii) paragraph (d) is to be read without reference to "by a partnership or";

(c) the amount referred to in subsection (1) (a) of this section is determined as if

(i) the partnership were a person,

(ii) its fiscal period were its taxation year, and

(iii) its filing-due date were its filing-due date for the year if it were a corporation;

(d) the appropriate portion is that portion that may reasonably be considered to be the qualifying corporation's share of the amount determined under subsection (1);

(e) if the qualifying corporation is at any time in a taxation year a member of a particular partnership that is a member of another partnership,

(i) the qualifying corporation is deemed to be a member of the other partnership, and

(ii) despite paragraph (d), the qualifying corporation's appropriate portion of the amount determined under subsection (1) for the other partnership is deemed to equal that portion that may reasonably be considered to be that share of the amount determined under subsection (1) to which the qualifying corporation is directly or indirectly entitled.

Renunciation of tax credit

100   (1) A corporation may renounce all or part of the annual non-refundable tax credit under section 99 (3.1) (a) in respect of the corporation's SR&ED qualified BC expenditure incurred during a taxation year.

(2) If the corporation renounces its entitlement to all or part of the tax credit under subsection (1), the corporation is deemed for all purposes never to have been entitled to receive, or have had reasonable expectation of receiving, that credit or part of it.

Amalgamations and wind ups

101   (1) If, after August 31, 1999, 2 or more corporations amalgamate within the meaning of section 87 (1) of the federal Act, the new corporation is deemed, for the purposes of this Part, to be the continuation of each of its predecessor corporations.

(2) If, after August 31, 1999, a subsidiary corporation is wound up within the meaning of section 88 (1) of the federal Act, the parent corporation is deemed, for the purposes of this Part, to be the continuation of the subsidiary corporation.

No credit available if section 17 deduction made

102   A corporation that has made a deduction in accordance with section 17 for a taxation year may not claim or deduct a tax credit under this Part for the same taxation year.

Recapture of tax credit corporations

102.1   (1) This section applies to a qualifying corporation if

(a) the corporation acquired a particular property and the cost, or a portion of the cost, of the property

(i) was a BC qualified expenditure of the corporation in a taxation year, or

(ii) would be a BC qualified expenditure of the corporation in a taxation year if, for the purposes of the definition of "qualified expenditure" in section 97 of this Act, the federal Act were read without reference to section 127 (26) of the federal Act,

(b) the cost, or portion of the cost, of the property is an amount that

(i) was included in computing the corporation's tax credit under this Part, or

(ii) would be included in computing the corporation's tax credit under this Part if, for the purposes of the definition of "qualified expenditure" in section 97 of this Act, the federal Act were read without reference to section 127 (26) of the federal Act, and

(c) after March 31, 2000 and within 10 taxation years of the acquisition described in paragraph (a), the corporation converts to commercial use, or disposes of without having previously converted to commercial use, that property or another property that incorporates that property.

(2) The qualifying corporation must add the lesser of the following to its tax otherwise payable for the taxation year in which the conversion or disposition described in subsection (1) (c) occurs:

(a) the amount

(i) included in the corporation's tax credit under this Part in respect of the particular property, or

(ii) that would be included in the corporation's tax credit under this Part in respect of the particular property if, for the purposes of the definition of "qualified expenditure" in section 97 of this Act, the federal Act were read without reference to section 127 (26) of the federal Act;

(b) the amount determined under subsection (2.1).

(2.1) The amount for the purpose of subsection (2) (b) is the product obtained by multiplying the percentage applied in computing the tax credit referred to in subsection (1) (b) by,

(a) in the case where the particular property or the property that incorporates the particular property is disposed of to a person who deals at arm's length with the corporation,

(i) the proceeds of disposition of the property, if the property disposed of

(A) is the particular property and is neither first term shared-use-equipment nor second term shared-use-equipment, or

(B) is the property that incorporates the particular property,

(ii) 25% of the proceeds of disposition of the property, if the property disposed of is the particular property, is first term shared-use-equipment and is not second term shared-use-equipment, and

(iii) 50% of the proceeds of disposition of the property, if the property disposed of is the particular property and is second term shared-use-equipment, and

(b) in the case where the particular property or the property that incorporates the particular property is converted to commercial use or is disposed of to a person who does not deal at arm's length with the corporation,

(i) the fair market value of the property at the time of its conversion or disposition, if the property converted or disposed of

(A) is the particular property and is neither first term shared-use-equipment nor second term shared-use-equipment, or

(B) is the property that incorporates the particular property,

(ii) 25% of the fair market value of the property at the time of its conversion or disposition, if the property converted or disposed of is the particular property, is first term shared-use-equipment and is not second term shared-use-equipment, and

(iii) 50% of the fair market value of the property at the time of its conversion or disposition, if the property converted or disposed of is the particular property and is second term shared-use-equipment.

(3) The cost of the property under subsection (1) (a) and (b)

(a) must not exceed the amount paid by the corporation to acquire that property from a transferor, and

(b) must not include any amounts paid by the corporation to maintain, modify or transform that property.

Recapture of amounts — partnership

102.11   (1) This section applies to a partnership if

(a) the partnership acquired a particular property and the cost of the property was a BC qualified expenditure of the partnership in a taxation year,

(b) the cost of the property is an amount that was included in computing the partnership amount in respect of the partnership for the taxation year referred to in paragraph (a), and

(c) in the taxation year and after February 20, 2007, and within 10 taxation years of the acquisition described in paragraph (a), the partnership converts to commercial use, or disposes of without having previously converted to commercial use, that property or another property that incorporates that property.

(2) For the taxation year in which the conversion or disposition described in subsection (1) (c) occurs, the amount determined for the partnership for the purpose of section 99.1 (1) (b) is, subject to section 102.6 (2), the lesser of the following:

(a) the amount included in respect of the property in computing the partnership amount referred to in subsection (1) (b) of this section;

(b) an amount equal to,

(i) if that property or the property that incorporates that property is disposed of to a person who deals at arm's length with the partnership, the proceeds of disposition of that property multiplied by the percentage that was applied in computing the partnership amount referred to in subsection (1) (b) of this section, or

(ii) in any other case, the fair market value at the time of conversion or disposition of that property or the property that incorporates that property multiplied by the percentage that was applied in computing the partnership amount referred to in subsection (1) (b) of this section.

(3) The cost of the property under subsection (1) (a) and (b)

(a) must not exceed the amount paid by the partnership to acquire that property from a transferor, and

(b) must not include any amounts paid by the partnership to maintain, modify or transform that property.

Recapture rules do not apply to specified non-arm's length transfers

102.2   Sections 102.1, 102.11, 102.3 and 102.4 do not apply to a qualifying corporation or partnership (in this section, the "transferor") that disposes of a property to a qualifying corporation or partnership (in this section and sections 102.3 and 102.4, the "purchaser") that does not deal at arm's length with the transferor, if the purchaser acquired the property in circumstances where the cost of the property to the purchaser would have been an expenditure of the purchaser described in section 37 (8) (a) (ii) (A) (III) or (B) (III) of the federal Act, as that section read on March 29, 2012, but for section 2902 (b) (iii) of the federal regulations.

Recapture of tax credit from non-arm's length purchasers — corporations

102.3   (1) This section applies to a purchaser that is a qualifying corporation if, at any particular time in a taxation year and after March 31, 2000, the purchaser converts to commercial use, or disposes of without having previously converted to commercial use, a property

(a) that

(i) was acquired by the purchaser in circumstances described in section 102.2, or

(ii) incorporates other property acquired by the purchaser in those circumstances, and

(b) that was first acquired, or that incorporates other property that was first acquired, by a corporation or partnership (in this section, the "original user") in the original user's taxation year that includes the particular time, assuming that the original user had such a taxation year, or in any of the original user's 10 preceding taxation years.

(2) The purchaser must add to its tax otherwise payable for the taxation year the lesser of the following:

(a) the amount,

(i) if the original user is a qualifying corporation, included in the original user's tax credit under this Part in respect of the property, or

(ii) if the original user is a partnership, included in computing the original user's partnership amount in respect of the property;

(b) an amount equal to

(i) if that property or the property that incorporates that property is disposed of to a person who deals at arm's length with the purchaser, the proceeds of disposition of that property multiplied by the percentage applied by the original user in computing its tax credit under this Part, or

(ii) in any other case, the fair market value at the time of conversion or disposition of that property or the property that incorporates that property multiplied by the percentage applied by the original user in computing its tax credit under this Part.

Recapture of amounts from non-arm's length purchasers — partnerships

102.4   (1) This section applies to a purchaser that is a partnership if, at any particular time in a taxation year and after February 20, 2007, the purchaser converts to commercial use, or disposes of without having previously converted to commercial use, a property

(a) that

(i) was acquired by the purchaser in circumstances described in section 102.2, or

(ii) incorporates other property acquired by the purchaser in those circumstances, and

(b) that was first acquired, or that incorporates other property that was first acquired, by a corporation or partnership (in this section, the "original user") with which the purchaser did not deal at arm's length at the time at which the purchaser acquired the property, in the original user's taxation year that includes the particular time, assuming that the original user had such a taxation year, or in any of the original user's 10 preceding taxation years.

(2) In respect of the partnership that is the purchaser under subsection (1), for the purpose of section 99.1 (1) (c), the amount determined for the partnership for the taxation year is the lesser of the following:

(a) the amount,

(i) if the original user is a qualifying corporation, included in the original user's tax credit under this Part in respect of the property, or

(ii) if the original user is a partnership, included in computing the original user's partnership amount in respect of the property;

(b) an amount equal to,

(i) if that property or the property that incorporates that property is disposed of to a person who deals at arm's length with the purchaser, the proceeds of disposition of that property multiplied by the percentage applied by the original user,

(A) if the original user is a qualifying corporation, in computing its tax credit under this Part, or

(B) if the original user is a partnership, in computing its partnership amount, or

(ii) in any other case, the fair market value at the time of conversion or disposition of that property or the property that incorporates that property multiplied by the percentage applied by the original user,

(A) if the original user is a qualifying corporation, in computing its tax credit under this Part, or

(B) if the original user is a partnership, in computing its partnership amount.

Recapture of tax credit by corporation in respect of a partnership

102.5   (1) This section applies to a qualifying corporation for a taxation year if

(a) the corporation is a member of a partnership in the taxation year, and

(b) the total of

(i) the amount equal to the total of all amounts each of which is an amount determined under section 102.11 (2) in respect of a property of the partnership, and

(ii) the amount equal to the total of all amounts each of which is an amount determined under section 102.4 (2) in respect of a property of the partnership,

exceeds the amount computed as the partnership amount in respect of the partnership.

(2) The qualifying corporation must add to its tax otherwise payable for the taxation year the portion of the excess under subsection (1) (b) that can reasonably be considered to be the qualifying corporation's share of the excess.

Recapture of amounts — tiered partnership

102.6   (1) This section applies to a partnership for a taxation year if

(a) a qualifying corporation is a member of the partnership,

(b) section 102.11 applies to the partnership for the taxation year,

(c) the partnership is a member of another partnership in the taxation year, and

(d) an amount would be added to the partnership's tax payable under section 102.5 for the taxation year if the partnership were a qualifying corporation.

(2) The amount referred to in subsection (1) (d) is deemed to be the lesser of the amounts described in section 102.11 (2) (a) and (b) in respect of a property of the partnership for the taxation year.

Filing requirements

103   (1) A qualifying corporation that wishes to claim a tax credit under this Part in respect of a taxation year must file, with the return of income filed by the corporation under section 29 for that taxation year, an application for the tax credit in the form, and containing the information, required by the Commissioner of Income Tax.

(2) A qualifying corporation is not entitled to a tax credit under this Part in respect of a taxation year unless, within 18 months after the end of the taxation year, the corporation files the form containing the information required under subsection (1).

Part 7 — British Columbia Manufacturing and Processing Tax Credit

Interpretation

104   (1) In this Part:

"amalgamation" has the same meaning as in section 87 (1) of the federal Act;

"BC qualified property" of a qualifying corporation means property, other than excluded property,

(a) that

(i) is a prescribed building for the purposes of the definition of "qualified property" in section 127 (9) of the federal Act, to the extent that the building is acquired by the corporation after March 31, 2000 and before July 31, 2001, or

(ii) is prescribed machinery or equipment for the purposes of the definition of "qualified property" in section 127 (9) of the federal Act and is acquired by the corporation after March 31, 2000 and before July 31, 2001,

(b) that has not been used, or acquired for use or lease, for any purpose whatever before it was acquired by the corporation, and

(c) that is to be

(i) used by the corporation in British Columbia primarily for the purpose of manufacturing or processing goods for sale or lease, or

(ii) leased by the corporation to a lessee that

(A) is a qualifying corporation and is related to the lessor corporation within the meaning of section 251 of the federal Act, and

(B) can reasonably be expected to use the property in British Columbia primarily for the purpose of manufacturing or processing goods for sale or lease;

"excluded property" means property acquired by a qualifying corporation in a taxation year in the course of earning income in the taxation year if any of the income is exempt income, as defined in section 248 (1) of the federal Act, or is exempt from tax under Part 1 of the federal Act;

"government assistance" means assistance from a government, municipality or other public authority whether as a grant, subsidy, forgivable loan, deduction from tax, investment allowance or any other form of assistance other than as a tax credit under this Part;

"manufacturing or processing" does not include any of the activities listed in subparagraphs (i) to (iv) of section 127 (11) (a) of the federal Act or in subparagraphs (i) to (vi) of section 127 (11) (b) of the federal Act;

"non-government assistance" has the same meaning as in section 127 (9) of the federal Act;

"qualifying corporation" means, for a taxation year, a corporation that has a permanent establishment in British Columbia at any time during the taxation year, but does not include a corporation that

(a) is exempt from tax under section 27 of this Act,

(b) is controlled directly or indirectly in any manner whatever by one or more persons all or part of whose taxable income is exempt from tax under section 27 of this Act or under Part 1 of the federal Act,

(c) is an employee venture capital corporation registered under section 8 of the Employee Investment Act,

(d) is a small business venture capital corporation registered under section 3 of the Small Business Venture Capital Act, or

(e) is of a type or class of corporation prescribed by regulation.

(2) For the purposes of sections 105 and 106,

(a) BC qualified property is deemed not to have been acquired by a qualifying corporation before that property is considered to have become available for use by the corporation, and

(b) section 13 (27) and (28) of the federal Act applies for the purposes of paragraph (a) of this subsection except that section of the federal Act is to be read without reference to paragraph (c) of section 13 (27) of that Act and paragraph (d) of section 13 (28) of that Act.

Non-refundable tax credit available

105   (1) Subject to section 110, a qualifying corporation may deduct from its tax otherwise payable under this Act for a taxation year ending after March 31, 1997 an amount not exceeding the smaller of

(a) its BC manufacturing and processing tax credit at the end of the taxation year calculated in accordance with subsection (2) of this section, and

(b) the tax otherwise payable by it under this Act for the taxation year.

(2) The BC manufacturing and processing tax credit of a qualifying corporation at the end of a taxation year is the amount, if any, by which the total of

(a) an amount equal to 3% of the total of all amounts each of which is the capital cost to the corporation of a BC qualified property acquired by that corporation in the taxation year,

(b) an amount equal to 3% of the total of all amounts each of which is the capital cost to the corporation of a BC qualified property acquired by the corporation in any of the 10 taxation years immediately preceding, or the 3 years immediately following, the taxation year,

(c) an amount equal to the total of all amounts each of which is an amount required by section 106 [Partnerships] to be added in computing its BC manufacturing and processing tax credit at the end of the taxation year,

(d) an amount equal to the total of all amounts each of which is an amount required by section 106 [Partnerships] to be added in computing its BC manufacturing and processing tax credit at the end of any of the 10 taxation years immediately preceding, or the 3 years immediately following, the taxation year, and

(e) the total of all amounts each of which is 3% of that part of a repayment made by the corporation in the taxation year or in any of the 10 taxation years immediately preceding, or the 3 years immediately following, the taxation year that can reasonably be considered to be a repayment of government assistance or non-government assistance that under subsection (3) (b) of this section reduced the capital cost to the corporation of a qualified property,

exceeds

(f) the total of all amounts each of which is that portion of the amount deducted under subsection (1) from the tax otherwise payable under this Act by the corporation for a preceding taxation year that is in respect of property acquired by the corporation in the taxation year or in the 10 taxation years immediately preceding, or the 2 years immediately following, the taxation year.

(3) For the purposes of this section, the following rules apply:

(a) the capital cost to a corporation of a property is to be computed as if no amount were added to that cost by virtue of section 21 of the federal Act;

(b) the capital cost to a corporation of a property is deemed to be the capital cost to the corporation of the property determined without applying section 13 (7.1) and (7.4) of the federal Act, less the amount of any government assistance, or non-government assistance,

(i) that can reasonably be considered to be in respect of, or for the acquisition of, the property, and

(ii) that, at the time of the filing of the corporation's return of income for the taxation year in which the property was acquired, the corporation has received, is entitled to receive or can reasonably be expected to receive;

(c) if a corporation has acquired property from a person with whom the corporation was not dealing at arm's length at an amount in excess of the fair market value of the property at the time the corporation so acquired it, the corporation is deemed to have acquired it at that fair market value;

(d) if at a particular time a corporation that is a member of a partnership has received, is entitled to receive or can reasonably be expected to receive government assistance or non-government assistance, the amount of assistance that can reasonably be considered to be in respect of, or for the acquisition of, depreciable property of the partnership is deemed to have been received at that time by the partnership as government assistance or non-government assistance in respect of the property.

Partnerships

106   (1) If, in a particular taxation year of a qualifying corporation that is a member of a partnership, an amount would, if the partnership were a qualifying corporation, be determined in respect of the partnership under section 105 (2) (a), (c) or (e) for a taxation year ending in the particular taxation year, the appropriate portion of that amount must be added in computing the corporation's tax credit under this Part at the end of that particular taxation year.

(2) For the purposes of this section, the appropriate portion of the amount referred to in subsection (1) is that portion that may reasonably be considered to be the corporation's share of the tax credit.

(3) If the corporation is a limited partner in the partnership at the end of the partnership's taxation year, the portion that under subsection (2) may reasonably be considered to be the corporation's share of the tax credit is to be determined by applying section 127 (8.1) to (8.5) of the federal Act, except that, in addition to any other modifications required by the circumstances,

(a) section 127 (8.1) and (8.3) (a) is to be read as though it did not include any reference to paragraph (a.1) of the definition of "investment tax credit" in section 127 (9) of the federal Act,

(b) section 127 (8.2) (b) (i) is to be read without reference to clause (B), and

(c) section 127 (8.2) (b) (i) (A) is to be read as though the reference to "a specified percentage" were to "3%".

Renunciation of tax credit

107   (1) On or before the date by which a qualifying corporation is required under section 29 to file its return of income for a taxation year, the corporation may renounce all or part of the tax credit with respect to a qualified property acquired by the corporation in the taxation year.

(2) If a qualifying corporation renounces its entitlement to all or part of a tax credit under subsection (1), the corporation is deemed for all purposes never to have been entitled to receive, or have had a reasonable expectation of receiving, that credit or part of it.

Amalgamations and wind ups

108   (1) If a new corporation is formed by the amalgamation of 2 or more corporations, the new corporation is deemed to be the same corporation as, and a continuation of, each of its predecessor corporations for the purposes of applying this Part to the new corporation, except that this provision does not affect the determination of the tax payable by any predecessor corporation.

(2) Despite subsection (1), if a new corporation is formed by the amalgamation of a particular corporation and one or more of its subsidiary wholly owned corporations within the meaning of section 87 (1.4) of the federal Act, the new corporation is deemed to be the same corporation as, and a continuation of, the particular corporation for the purposes of applying this Part to the particular corporation.

(3) If a subsidiary corporation is wound up, within the meaning of section 88 (1) of the federal Act, the parent corporation is deemed to be the same corporation as, and a continuation of, the subsidiary corporation for the purposes of applying this Part to the parent corporation.

No credit available for year in which section 17 deduction made

109   A corporation that has made a deduction in accordance with section 17 for a taxation year may not add any amount under section 105 (2) (a) to (e) in respect of that taxation year.

Filing requirements

110   (1) A qualifying corporation that wishes to claim a tax credit under this Part in respect of a taxation year must file, with the return of income filed by the corporation under section 29 for that taxation year, an application for the tax credit in the form, and containing the information, required by the Commissioner of Income Tax.

(2) In computing its tax credit under section 105 (2), a qualifying corporation is not entitled to include an amount in respect of a BC qualified property unless the corporation files the form containing the information required under subsection (1) of this section in respect of that amount within 18 months after the end of the taxation year in which the corporation acquired the property.

Part 8 — Book Publishing Tax Credit

Definitions and interpretation

111   (1) In this Part:

"BC book publishing corporation", for a taxation year, means a corporation that

(a) is a Canadian-controlled corporation throughout the taxation year, and

(b) is a book publishing corporation that carries out its business primarily through a permanent establishment in British Columbia as determined by the regulations,

but does not include a corporation that

(c) is exempt from tax under section 27,

(d) is controlled directly or indirectly in any manner by one or more persons, all or part of whose taxable income is exempt from tax under section 27 of this Act or under Part I of the federal Act, or

(e) is of a type or class of corporation prescribed by regulation;

"book publishing corporation" means a corporation whose principal business is book publishing, and that

(a) enters into contractual agreements with authors and copyright holders,

(b) offers books for retail sale, and

(c) bears the financial risks associated with carrying on the business of publishing, or is related to a Canadian-controlled corporation that bears the financial risks associated with carrying on the business;

"Canadian-controlled corporation" means a corporation that is Canadian-controlled within the meaning of sections 26 to 28 of the Investment Canada Act;

"CBF contribution" means a contribution paid before April 1, 2021 as a base amount under the Support for Publishers component of the Canada Book Fund, administered by the Department of Canadian Heritage;

"related" has the same meaning as in section 251 of the federal Act.

(2) In applying sections 26 to 28 of the Investment Canada Act for the purposes of this Part, those sections are to be read without reference to the "Director", and as though a reference to the "Minister" were to the "minister", as defined in this Act.

Book publishing tax credit

112   (1) A corporation is eligible for the book publishing tax credit for a taxation year ending after September 30, 2002 if

(a) the corporation is, throughout the taxation year in respect of which the tax credit is being claimed, a BC book publishing corporation,

(b) the corporation received a CBF contribution in the taxation year in respect of which the tax credit is being claimed, and

(c) the corporation applies for the tax credit in accordance with section 114.

(2) The amount of the book publishing tax credit that may be claimed by an eligible corporation is 90% of the CBF contribution for the taxation year.

Deemed payment

113   A corporation that has claimed and is eligible for a tax credit under this Part for a taxation year is deemed to have paid, at the time referred to in section 157 (1) (b) of the federal Act, as that section relates to that taxation year, the amount of that credit on account of its tax payable under this Act.

Filing requirements

114   (1) An eligible corporation that wishes to claim a tax credit under this Part in respect of a taxation year must file, with the return of income filed by the corporation under section 29 for that taxation year, an application for the tax credit in the form, and containing the information, required by the Commissioner of Income Tax.

(2) An eligible corporation is not entitled to a tax credit under this Part in relation to its book publishing tax credit in a taxation year unless, within 18 months after the end of the taxation year, the corporation files the form containing the information required under subsection (1).

Power to make regulations

115   Regulations made for the purposes of this Part may be made retroactive to a date on or after October 1, 2002 and if made retroactively are deemed to have come into force on the date specified in the regulation.

Part 9 — Training Tax Credits

Division 1 — Definitions

Definitions

116   In this Part:

"eligible employer", in relation to a taxation year, means

(a) an individual subject to tax under section 2 (1) (a) for the taxation year, or

(b) a corporation that is subject to tax under section 2 (2), other than a corporation

(i) all or part of whose taxable income is at any time in the taxation year exempt from tax under Part I of the federal Act, or

(ii) that, at any time in the taxation year,

(A) is exempt from tax under section 27, or

(B) is controlled directly or indirectly in any manner whatever by one or more persons all or part of whose taxable income is exempt from tax under section 27 of this Act or under Part I of the federal Act;

"eligible recognized program" means a program prescribed under section 131 (1) (b);

"eligible training program" means a program prescribed under section 131 (1) (c);

"government assistance" means assistance from a government, municipality or other public authority, whether as a grant, subsidy, forgivable loan, deduction from tax, investment allowance or any other form of assistance, but does not include

(a) an amount deemed to have been paid under section 127 of this Act, or

(b) a deduction under section 127 (5) or (6) of the federal Act;

"industry training agreement" has the same meaning as in the Industry Training Authority Act;

"ineligible program" means an eligible recognized program designed to certify or license an individual in a trade prescribed in respect of British Columbia for the purposes of the definition of "eligible apprentice" in section 127 (9) of the federal Act;

"level 1 requirements" means the requirements established by regulation under section 131 (1) (d) for an eligible recognized program;

"level 2 requirements" means the requirements established by regulation under section 131 (1) (e) for an eligible recognized program;

"level 3 requirements" means the requirements established by regulation under section 131 (1) (f) for an eligible training program;

"level 4 or higher requirements" means the requirements established by regulation under section 131 (1) (g) for an eligible training program;

"non-government assistance" has the same meaning as in section 127 (9) of the federal Act.

Division 2 — Tax Credits for Individuals

Application of this Division

117   This Division applies to taxation years beginning after December 31, 2006 and ending before January 1, 2023.

Basic tax credit for individuals

118   (1) This section applies to an individual for a taxation year if the individual meets the following requirements:

(a) the individual was resident in British Columbia at the end of December 31 of the taxation year;

(b) the individual was registered in an eligible recognized program, other than an ineligible program, in the taxation year;

(c) the individual completed, in the taxation year, the level 1 requirements or the level 2 requirements for the program referred to in paragraph (b);

(d) any other prescribed requirements.

(2) An individual may claim a tax credit of $1 000 for the taxation year for each of the level 1 requirements or level 2 requirements completed by the individual in the taxation year.

Completion tax credit for individuals

119   (1) This section applies to an individual for a taxation year if the individual

(a) was resident in British Columbia at the end of December 31 of the taxation year,

(b) was registered in an eligible training program in the taxation year,

(c) completed, in the taxation year, the level 3 requirements or the level 4 or higher requirements for the eligible training program, and

(d) meets any other prescribed requirements.

(2) An individual may claim a tax credit for the taxation year in the amount that is the total of the following:

(a) if the individual completed in the taxation year the level 3 requirements for an eligible training program, $2 000;

(b) if the individual completed in the taxation year one or more of the level 4 or higher requirements for an eligible training program, $2 500 for each of the level 4 or higher requirements completed in the taxation year.

Certification tax credit for individuals

119.1   (1) This section applies to an individual for a taxation year if the individual meets the following requirements:

(a) the individual was resident in British Columbia at the end of December 31 of the taxation year;

(b) the individual was not registered in an eligible recognized program or eligible training program referred to in paragraph (c) in the taxation year;

(c) the individual has received a Certificate of Qualification from the Industry Training Authority in the taxation year

(i) for completing an eligible recognized program or an eligible training program, other than an ineligible program, after passing a challenge exam, or

(ii) for completing a prescribed eligible recognized program or a prescribed eligible training program, other than an ineligible program;

(d) any other prescribed requirements.

(2) An individual may claim a tax credit for the taxation year in the amount that is the total of the following:

(a) if the individual completed in the taxation year one or more eligible recognized programs with level 1 requirements or level 2 requirements for completion, $1 000 for each of the eligible recognized programs completed in the taxation year;

(b) if the individual completed in the taxation year one or more eligible training programs with level 3 requirements for completion, $2 000 for each of the eligible training programs completed in the taxation year;

(c) if the individual completed in the taxation year one or more eligible training programs with level 4 or higher requirements for completion, $2 500 for each of the eligible training programs completed in the taxation year.

Enhanced tax credit for individuals

120   (1) This section applies to an individual for a taxation year if

(a) the individual

(i) may claim a tax credit under section 118, 119 or 119.1 for the taxation year, or

(ii) was an eligible apprentice, as defined in section 127 (9) of the federal Act, in the taxation year and resident in British Columbia at the end of December 31 of the taxation year, and

(b) the individual

(i) is entitled to a deduction under section 118.3 (1) of the federal Act for the taxation year, or

(ii) is registered as an Indian under the Indian Act (Canada).

(2) An individual referred to in subsection (1) may claim a tax credit for a taxation year in the amount of 50% of the total of the following:

(a) the amount the individual has claimed as a tax credit for the taxation year under section 118 [basic tax credit for individuals];

(b) the amount the individual has claimed as a tax credit for the taxation year under section 119 [completion tax credit for individuals];

(c) the amount the individual has claimed as a tax credit for the taxation year under section 119.1 [certification tax credit for individuals];

(d) the amount the individual has received in the taxation year under the Apprenticeship Incentive Grant program referred to in section 56 (1) (n.1) [apprenticeship grants] of the federal Act.

(3) [Repealed 2010-18-29.]

Division 3 — Tax Credits for Employers

Definition for this Division

121   In this Division, "applicable period" means the period beginning on January 1, 2007 and ending on December 31, 2022.

Basic tax credit for employers

122   (1) In this section:

"eligible period", in relation to an employee employed by an eligible employer in a taxation year of the eligible employer, means that part of the taxation year that

(a) is within 24 months after the date the employee entered into the industry training agreement, and

(b) is in the applicable period;

"employee" means an individual who is registered in an eligible recognized program.

(2) This section applies to an eligible employer for a taxation year in respect of an employee if

(a) the employee is employed in a position that

(i) is in a business carried on in British Columbia in the taxation year by the eligible employer, and

(ii) relates to the eligible recognized program, other than an ineligible program, in which the employee is registered in the taxation year, and

(b) the employee has an eligible period in the taxation year.

(3) An eligible employer may claim a tax credit for the taxation year in respect of the employee in the amount that is the lesser of

(a) $4 000, and

(b) 20% of the amount determined by the following formula:

amount = salary and wages − designated assistance
where
designated assistance = the total of all amounts of government assistance and non-government assistance that can reasonably be considered to be in respect of the salary and wages payable in the eligible period to the employee and that, at the time of filing of the eligible employer's return of income for the taxation year,
(i)the eligible employer has received or is entitled to receive or can reasonably be expected to receive,
(ii)have not been repaid under a legal obligation to do so, and
(iii)have not otherwise reduced the salary and wages;
salary and wages = the amount of salary and wages payable by the eligible employer in the eligible period to the employee in respect of the employment referred to in subsection (2) (a), other than remuneration that is the following:
(i)profits;
(ii)bonuses;
(iii)amounts described in section 6 or 7 of the federal Act;
(iv)amounts deemed to be incurred under section 78 (4) of the federal Act.

Completion tax credit for employers

123   (1) In this section:

"completion date", in respect of an employee, means the date on which the employee completed the level 3 requirements or the level 4 or higher requirements for an eligible training program;

"eligible period", in relation to an employee completing the level 3 requirements or the level 4 or higher requirements for an eligible training program, means the period that

(a) ends at any time in the month that includes the employee's completion date for that level,

(b) does not exceed 12 months, and

(c) begins no earlier than January 1, 2007;

"employee" means an individual who is registered in an eligible training program.

(2) This section applies to an eligible employer for a taxation year in respect of an employee if

(a) the employee is employed in a position that

(i) is in a business carried on in British Columbia in the taxation year by the eligible employer, and

(ii) relates to the eligible training program in which the employee is registered in the taxation year, and

(b) the employee's completion date is in the taxation year and in the applicable period.

(3) An eligible employer may claim a tax credit for the taxation year in respect of the employee in the amount that is the total of the following:

(a) if the employee completed in the taxation year the level 3 requirements for an eligible training program, the lesser of

(i) $2 500, and

(ii) 15% of the amount determined under subsection (4);

(b) if the employee completed in the taxation year the level 4 or higher requirements for an eligible training program, the lesser of

(i) $3 000, and

(ii) 15% of the amount determined under subsection (4).

(4) The amount for the purpose of subsection (3) (a) (ii) or (b) (ii) is the amount determined by the following formula:

amount = salary and wages − designated assistance
where
designated assistance = the total of all amounts of government assistance and non-government assistance that can reasonably be considered to be in respect of the salary and wages payable in the eligible period to the employee and that, at the time of filing of the eligible employer's return of income for the taxation year,
(a)the eligible employer has received or is entitled to receive or can reasonably be expected to receive,
(b)have not been repaid under a legal obligation to do so, and
(c)have not otherwise reduced the salary and wages;
salary and wages = the amount of salary and wages payable by the eligible employer in the eligible period to the employee in respect of the employment referred to in subsection (2) (a), other than remuneration that is the following:
(a)profits;
(b)bonuses;
(c)amounts described in section 6 or 7 of the federal Act;
(d)amounts deemed to be incurred under section 78 (4) of the federal Act.

Enhanced tax credit for employers

124   (1) In this section, "employee" means an employee, as defined in section 122 or 123, who

(a) is entitled to a deduction under section 118.3 (1) of the federal Act for the taxation year, or

(b) is registered as an Indian under the Indian Act (Canada).

(2) An eligible employer may claim a tax credit for a taxation year in respect of an employee in the amount of 50% of the total of the following:

(a) the amount the eligible employer may claim as a tax credit for the taxation year under section 122 [basic tax credit for employers] in respect of the employee;

(b) the amount the eligible employer may claim as a tax credit for the taxation year under section 123 [completion tax credit for employers] in respect of the employee.

Enhanced tax credit for employers — eligible apprentice

124.1   (1) In this section:

"apprenticeship expenditure" has the same meaning as in section 127 (9) of the federal Act;

"eligible apprentice" has the same meaning as in section 127 (9) of the federal Act except that the reference to "apprenticeship contract" in that section is to be read as "industry training agreement";

"eligible period", in relation to an eligible apprentice employed by an eligible employer in a taxation year of the eligible employer, means that part of the taxation year that

(a) is within 24 months after the date the eligible apprentice entered into the industry training agreement, and

(b) is in the applicable period;

"eligible salary and wages" has the same meaning as in section 127 (9) of the federal Act.

(2) This section applies to an eligible employer for a taxation year in respect of an eligible apprentice if

(a) the eligible apprentice is employed in a position that

(i) is in a business carried on in British Columbia in the taxation year by the eligible employer, and

(ii) relates to the trade in respect of which the eligible apprentice has entered into an industry training agreement, and

(b) the eligible apprentice

(i) is entitled to a deduction under section 118.3 (1) of the federal Act for the taxation year, or

(ii) is registered as an Indian under the Indian Act (Canada).

(3) An eligible employer may claim a tax credit for a taxation year in respect of an eligible apprentice in the amount that is the lesser of

(a) $1 000, and

(b) 5.5% of the amount determined by the following formula:

amount = salary and wages − designated assistance
where
designated assistance = the total of all amounts of government assistance and non-government assistance that can reasonably be considered to be in respect of the salary and wages payable in the eligible period to the eligible apprentice and that, at the time of filing of the eligible employer's return of income for the taxation year,
(i)the eligible employer has received or is entitled to receive or can reasonably be expected to receive,
(ii)have not been repaid under a legal obligation to do so, and
(iii)have not otherwise reduced the salary and wages;
salary and wages = the amount of the eligible salary and wages payable by the eligible employer in the taxation year to the eligible apprentice in respect of the eligible apprentice's employment, in the taxation year and in the applicable period, in a business carried on in British Columbia in the taxation year by the eligible employer.

No credits for eligible industry employer

124.2   If in a taxation year an eligible employer is an eligible industry employer, as defined in section 126.1, the eligible employer may not claim a tax credit under section 122, 123, 124 or 124.1 for the taxation year.

Restrictions on credits: multiple employers

125   (1) If 2 or more eligible employers who are not dealing with each other at arm's length may claim a tax credit under this Division for a particular period in respect of an employee, the total of all amounts claimed under this Division may not exceed the maximum amount that would be claimed under this Division for the particular period by any one of those eligible employers for that employee if that eligible employer were the only employer entitled to claim a tax credit under this Division for the particular period.

(2) The Commissioner of Income Tax may fix the portions of a tax credit claimed under this Division if the eligible employers referred to in subsection (1) cannot agree as to what portion of the tax credit each may claim.

Restrictions on credits: partnership

126   (1) If in a taxation year an eligible employer is a member of a partnership, other than a specified member, as defined in section 248 (1) of the federal Act, the eligible employer may claim a tax credit under section 122, 123, 124 or 124.1 for the taxation year in the amount that is the appropriate portion of the amount determined under section 122, 123, 124 or 124.1 for the partnership for its taxation year ending in the taxation year of the eligible employer.

(2) In determining, for the purpose of subsection (1), the amount under section 122, 123, 124 or 124.1 for a partnership for a taxation year, the following rules apply:

(a) in this Division, the references to "eligible employer" are to be read as "partnership";

(b) in sections 122 (3) (b), 123 (4) and 124.1 (3), in the descriptions of "designated assistance", the reference to "at the time of filing of the eligible employer's return of income for the taxation year" is to be read as "on or before the filing-due date of the partnership for the taxation year";

(c) the amount is determined as if

(i) the partnership were a person,

(ii) its fiscal period were its taxation year, and

(iii) its filing-due date were its filing-due date for the year if it were a corporation;

(d) the appropriate portion is that portion that may reasonably be considered to be the eligible employer's share of the amount determined under section 122, 123, 124 or 124.1.

Division 3.1 — Tax Credits for Shipbuilding and Ship Repair Industry Employers

Definitions for this Division

126.1   In this Division:

"applicable period" means the period beginning on the prescribed date and ending on December 31, 2022;

"eligible industry employer", in relation to a taxation year, means an individual or a corporation

(a) that is an eligible employer in the taxation year, and

(b) whose principal business is the construction, repair or conversion of ships;

"ship" means a sea-going vessel propelled by engine, but does not include

(a) a vessel ordinarily used for personal or recreational purposes, or

(b) a prescribed vessel.

Basic tax credit for eligible industry employers

126.2   (1) In this section:

"eligible industry program" means

(a) an eligible recognized program, or

(b) an accredited program, as defined in the Industry Training Authority Act;

"eligible period", in relation to an employee employed by an eligible industry employer in a taxation year of the eligible industry employer, means that part of the taxation year that

(a) is within 24 months after the date the employee entered into the industry training agreement, and

(b) is in the applicable period;

"employee" means an individual who is registered in an eligible industry program.

(2) This section applies to an eligible industry employer for a taxation year in respect of an employee if

(a) the employee is employed in a position that

(i) is in a business carried on in British Columbia in the taxation year by the eligible industry employer, and

(ii) relates to the eligible industry program in which the employee is registered in the taxation year, and

(b) the employee has an eligible period in the taxation year.

(3) An eligible industry employer may claim a tax credit for the taxation year in respect of the employee in the amount that is the lesser of

(a) $5 250, and

(b) 20% of the amount determined by the following formula:

amount = salary and wages − designated assistance
where
designated assistance=the total of all amounts of government assistance and non-government assistance that can reasonably be considered to be in respect of the salary and wages payable in the eligible period to the employee and that, at the time of filing of the eligible industry employer's return of income for the taxation year,
(i) the eligible industry employer has received or is entitled to receive or can reasonably be expected to receive,
(ii) have not been repaid under a legal obligation to do so, and
(iii) have not otherwise reduced the salary and wages;
salary and wages=the amount of salary and wages payable by the eligible industry employer in the eligible period to the employee in respect of the employment referred to in subsection (2) (a), other than remuneration that is the following:
(i) profits;
(ii) bonuses;
(iii) amounts described in section 6 or 7 of the federal Act;
(iv) amounts deemed to be incurred under section 78 (4) of the federal Act.

Completion tax credit for eligible industry employers

126.3   (1) In this section:

"completion date", in respect of an employee, means the date on which the employee completed the level 3 requirements or the level 4 or higher requirements for an eligible training program;

"eligible period", in relation to an employee completing the level 3 requirements or the level 4 or higher requirements for an eligible training program, means the period that

(a) ends at any time in the month that includes the employee's completion date for that level, and

(b) does not exceed 12 months;

"employee" means an individual who is registered in an eligible training program.

(2) This section applies to an eligible industry employer for a taxation year in respect of an employee if

(a) the employee is employed in a position that

(i) is in a business carried on in British Columbia in the taxation year by the eligible industry employer, and

(ii) relates to the eligible training program in which the employee is registered in the taxation year, and

(b) the employee's completion date is in the taxation year and in the applicable period.

(3) If an employee completed in the taxation year the level 3 requirements or the level 4 or higher requirements for an eligible training program, the eligible industry employer may claim a tax credit for the taxation year in respect of each level completed in the taxation year by the employee in the amount that is the lesser of

(a) $5 250, and

(b) 20% of the amount determined by the following formula:

amount = salary and wages − designated assistance
where
designated assistance=the total of all amounts of government assistance and non-government assistance that can reasonably be considered to be in respect of the salary and wages payable in the eligible period to the employee and that, at the time of filing of the eligible industry employer's return of income for the taxation year,
(i) the eligible industry employer has received or is entitled to receive or can reasonably be expected to receive,
(ii) have not been repaid under a legal obligation to do so, and
(iii) have not otherwise reduced the salary and wages;
salary and wages=the amount of salary and wages payable by the eligible industry employer in the eligible period to the employee in respect of the employment referred to in subsection (2) (a), other than remuneration that is the following:
(i) profits;
(ii) bonuses;
(iii) amounts described in section 6 or 7 of the federal Act;
(iv) amounts deemed to be incurred under section 78 (4) of the federal Act.

Enhanced tax credit for eligible industry employers

126.4   (1) In this section, "employee" means an employee, as defined in section 126.2 or 126.3, who

(a) is entitled to a deduction under section 118.3 (1) of the federal Act for the taxation year, or

(b) is registered as an Indian under the Indian Act (Canada).

(2) An eligible industry employer may claim a tax credit for a taxation year in respect of an employee in the amount of 50% of the total of the following:

(a) the amount the eligible industry employer may claim as a tax credit for the taxation year under section 126.2 [basic tax credit for eligible industry employers] in respect of the employee;

(b) the amount the eligible industry employer may claim as a tax credit for the taxation year under section 126.3 [completion tax credit for eligible industry employers] in respect of the employee.

Restrictions on credits: multiple eligible industry employers

126.5   (1) If 2 or more eligible industry employers who are not dealing with each other at arm's length may claim a tax credit under this Division for a particular period in respect of an employee, the total of all amounts claimed under this Division may not exceed the maximum amount that would be claimed under this Division for the particular period by any one of those eligible industry employers for that employee if that eligible industry employer were the only employer entitled to claim a tax credit under this Division for the particular period.

(2) The Commissioner of Income Tax may fix the portions of a tax credit claimed under this Division if the eligible industry employers referred to in subsection (1) cannot agree as to what portion of the tax credit each may claim.

Restrictions on credits: partnership

126.6   (1) If in a taxation year an eligible industry employer is a member of a partnership, other than a specified member, as defined in section 248 (1) of the federal Act, the eligible industry employer may claim a tax credit under section 126.2, 126.3 or 126.4 for the taxation year in the amount that is the appropriate portion of the amount determined under section 126.2, 126.3 or 126.4 for the partnership for its taxation year ending in the taxation year of the eligible industry employer.

(2) In determining, for the purpose of subsection (1), the amount under section 126.2, 126.3 or 126.4 for a partnership for a taxation year, the following rules apply:

(a) in this Division, the references to "eligible industry employer" are to be read as "partnership";

(b) in sections 126.2 (3) (b) and 126.3 (3) (b), in the descriptions of "designated assistance", the reference to "at the time of filing of the eligible industry employer's return of income for the taxation year" is to be read as "on or before the filing-due date of the partnership for the taxation year";

(c) the amount is determined as if

(i) the partnership were a person,

(ii) its fiscal period were its taxation year, and

(iii) its filing-due date were its filing-due date for the year if it were a corporation;

(d) the appropriate portion is that portion that may reasonably be considered to be the eligible industry employer's share of the amount determined under section 126.2, 126.3 or 126.4.

Division 4 — Administration

Deemed payment

127   A taxpayer that has claimed and is eligible for a tax credit under this Part for a taxation year is deemed to have paid, at the time referred to in section 156.1 (4) or 157 (1) (b) of the federal Act, as the applicable section relates to the taxation year of the taxpayer, the amount of the tax credit on account of the taxpayer's tax payable under this Act.

Filing requirements

128   (1) A taxpayer who wishes to claim a tax credit under this Part in respect of a taxation year must file, with the taxpayer's return of income filed under section 29 for the taxation year,

(a) an application for the tax credit in the form, and containing the information, required by the Commissioner of Income Tax, and

(b) other records required by the Commissioner of Income Tax.

(2) A taxpayer is not entitled to a tax credit under Division 3 or 3.1 of this Part in respect of a taxation year unless, within 36 months after the end of the taxation year, the taxpayer files the form containing the information required under subsection (1).

Powers of audit

129   Without limiting any provision of this Act or the federal Act, for the purpose of determining eligibility for a tax credit under this Part, the Commissioner of Income Tax has powers equivalent to the federal minister under sections 230 (3), 231, 231.1 and 233 of the federal Act, and for that purpose those sections apply.

Collection and sharing of information

130   Without limiting any provision of this or any other enactment, the Provincial minister, the federal minister, if a collection agreement is in effect, the minister charged with the administration of the Industry Training Authority Act and the Industry Training Authority may

(a) collect any information that is relevant to an application for a tax credit being claimed or already claimed under this Part, and

(b) share with each other, in accordance with an information-sharing agreement entered into in accordance with section 65, any information respecting an application, an applicant or any other person if the information is relevant to a tax credit being claimed or already claimed under this Part.

Power to make regulations

131   (1) The Commissioner of Income Tax may make regulations as follows:

(a) [Repealed 2010-18-33.]

(b) prescribing as an eligible recognized program a program that is a recognized program, as defined in the Industry Training Authority Act;

(c) prescribing as an eligible training program a program that is an industry training program, as defined in the Industry Training Authority Act;

(d) for the purposes of this Part, establishing requirements for an eligible recognized program as level 1 requirements;

(e) for the purposes of this Part, establishing requirements for an eligible recognized program as level 2 requirements;

(f) for the purposes of this Part, establishing requirements for an eligible training program as level 3 requirements;

(g) for the purposes of this Part, establishing requirements for an eligible training program as level 4 requirements or requirements for a higher level;

(h) [Repealed 2010-18-33.]

(i) prescribing eligible recognized programs or eligible training programs for the purposes of section 119.1 (1) (c) (ii).

(2) In making regulations under subsection (1) (d) to (g), the Commissioner of Income Tax may do one or more of the following:

(a) establish different requirements for different eligible recognized programs and different eligible training programs;

(b) define classes of eligible recognized programs and eligible training programs and make different regulations for different classes of eligible recognized programs and eligible training programs;

(c) adopt a level of requirements established by the Industry Training Authority for an eligible recognized program or eligible training program

(i) in whole, in part or with any changes considered appropriate, and

(ii) as it stands at a specific date, as it stands at the time of adoption or as amended from time to time.

(2.1) Without limiting section 48 (1) and (2), the Lieutenant Governor in Council may make regulations as follows:

(a) defining any word or expression used in this Part;

(b) prescribing requirements for the purposes of section 118 (1) (d), 119 (1) (d) or 119.1 (1) (d);

(c) prescribing a date for the purposes of the definition of "applicable period" in section 126.1;

(d) prescribing vessels not included in the definition of "ship" in section 126.1.

(3) Regulations made under subsection (1) or (2.1) may be made retroactive to January 1, 2007 or a later date, and if made retroactive are deemed to have come into force on the specified date.

Part 10 — Interactive Digital Media Tax Credit

Definitions

132   In this Part:

"eligible activities", in relation to an interactive digital media product, means eligible activities as defined by regulation;

"interactive digital media product" means a product that

(a) consists of a combination of application files and data files, in a digital format, that are integrated and are intended to be operated together,

(b) is designed primarily to educate, inform or entertain the user,

(c) is capable of presenting information in at least 2 of the following forms:

(i) text;

(ii) sound;

(iii) images,

(d) is intended to be used interactively by individuals, and

(e) is developed in British Columbia,

but does not include a prescribed product;

"taxable Canadian corporation" has the same meaning as in the federal Act.

Eligibility for tax credit

133   (1) Subject to subsection (3), a corporation is eligible for a tax credit under this Part for a taxation year if the corporation meets the following criteria:

(a) the corporation is registered under section 136 for the taxation year;

(b) the corporation has a permanent establishment in British Columbia at any time during the taxation year;

(c) the corporation is a taxable Canadian corporation throughout the taxation year;

(d) either of the following applies:

(i) the corporation's eligible salary and wages, as determined under section 134 (2) for the taxation year, is equal to or greater than $2 million;

(ii) the corporation's eligible salary and wages, as determined under section 134 (2) for the taxation year, is greater than $100 000 and less than $2 million and either of the following applies:

(A) the corporation's principal business in the taxation year is the development of interactive digital media products;

(B) all or substantially all of the corporation's business in the taxation year consists of one or both of the following:

(I) the development of interactive digital media products;

(II) the provision of eligible activities to one or more recipient corporations that meet the criteria set out in subsection (1.1) of this section.

(e) [Repealed 2017-12-59.]

(1.1) The criteria for the purposes of subsection (1) (d) (ii) (B) (II) are as follows:

(a) the recipient corporation has a permanent establishment in British Columbia;

(b) in a taxation year of the recipient corporation that includes any part of the taxation year of the corporation that is providing the eligible activities,

(i) the principal business of the recipient corporation is the development of interactive digital media products, or

(ii) the eligible salary and wages of the recipient corporation, as determined under section 134 (2), is equal to or greater than $2 million.

(2) If a corporation has a taxation year of less than 365 days,

(a) the reference in subsection (1) (d) (i) and (ii) to $2 million is to be read in respect of the corporation as a reference to the amount equal to that proportion of $2 million that the number of days in the taxation year bears to 365, and

(b) the reference in subsection (1) (d) (ii) to $100 000 is to be read in respect of the corporation as a reference to the amount equal to that proportion of $100 000 that the number of days in the taxation year bears to 365.

(2.1) If a recipient corporation has a taxation year of less than 365 days, the reference in subsection (1.1) (b) (ii) to $2 million is to be read in respect of the recipient corporation as a reference to the amount equal to that proportion of $2 million that the number of days in the taxation year bears to 365.

(3) A corporation is not eligible for a tax credit under this Part for a taxation year if the corporation claims a tax credit for the taxation year under Part 6 or the corporation, at any time in the taxation year,

(a) is exempt from tax under section 27,

(b) has taxable income that is exempt from tax under Part I of the federal Act,

(c) is prescribed, under the federal Act, to be a labour-sponsored venture capital corporation for the purpose of section 127.4 of that Act,

(d) has an employee share ownership plan registered under section 2 of the Employee Investment Act,

(e) is an employee venture capital corporation registered under section 8 of the Employee Investment Act,

(f) is a small business venture capital corporation registered under section 3 of the Small Business Venture Capital Act,

(g) [Repealed 2017-12-59.]

(h) is controlled directly or indirectly in any manner whatever by one or more corporations described in paragraphs (a) to (f), or

(i) carries on a personal services business, as defined in section 125 (7) of the federal Act.

Interactive digital media tax credit

134   (1) In this section:

"salary or wages" has the same meaning as in section 248 of the federal Act, but does not include

(a) an amount described in section 7 of the federal Act,

(b) in relation to a corporation, remuneration based on profits or a bonus, if the remuneration or bonus is in respect of a specified employee of the corporation, or

(c) in relation to a corporation for a taxation year, expenses incurred by the corporation in the taxation year in respect of salary or wages, as defined in section 248 of the federal Act, of a specified employee of the corporation to the extent that those expenses exceed the amount determined by the formula in section 37 (9.1) of the federal Act for the taxation year;

"specified employee" has the same meaning as in section 248 of the federal Act.

(2) A corporation that is eligible under section 133 may claim a tax credit for a taxation year in the amount equal to 17.5% of the amount determined by the following formula:

amount = eligible salary and wages − designated assistance
where
designated assistance = the total of all amounts that would be included under section 12 (1) (x) of the federal Act in computing the income of the corporation for the taxation year if that section were read without reference to subparagraphs (v) to (vii) of that section and that can reasonably be considered to be in respect of eligible salary and wages, but does not include
(a)a prescribed amount,
(b)an amount deemed to have been paid under section 135 of this Act, or
(c)an amount deducted under section 127 (5) or (6) of the federal Act;
eligible salary and wages = the total salary or wages that
(a)are directly attributable to eligible activities,
(b)are incurred
(i)by the corporation in the taxation year,
(ii)on or after September 1, 2010, and
(iii)before September 1, 2023,
(c)are paid to an individual who was resident in British Columbia at the end of December 31 of the year preceding the end of the taxation year for which a tax credit is claimed under this Part, and
(d)are
(i)included in the cost to, or in the case of depreciable property the capital cost to, the corporation of a property in the taxation year, or
(ii)deductible as an outlay or expense in computing the income of the corporation for the taxation year.

Deemed payment

135   A corporation that has claimed and is eligible for a tax credit under this Part for a taxation year is deemed to have paid, at the time referred to in section 157 (1) (b) of the federal Act, as that section relates to the taxation year, the amount of the credit on account of its tax payable under this Act.

Registration

136   (1) A corporation may apply to the Commissioner of Income Tax to have the corporation registered for the purposes of claiming a tax credit under this Part for a taxation year.

(2) In applying under subsection (1) to be registered, a corporation must provide the following to the Commissioner of Income Tax:

(a) an application in the form, and containing the information, required by the Commissioner of Income Tax;

(b) any other information or records required by the Commissioner of Income Tax;

(c) the prescribed application fee.

(3) On receiving an application under this section, the Commissioner of Income Tax must register the applicant corporation if the Commissioner of Income Tax is satisfied, on the basis of the information provided by the corporation and any other information available to the Commissioner of Income Tax, that the corporation, if registered, is or will be eligible for a tax credit under this Part for the taxation year.

(4) If the Commissioner of Income Tax refuses to register an applicant corporation, the Commissioner of Income Tax must issue a notice of refusal of registration to the corporation.

(5) If the Commissioner of Income Tax is satisfied that a corporation that has been registered is not or will not be eligible for a tax credit under this Part for a taxation year, the Commissioner of Income Tax may cancel the registration of the corporation for the taxation year by issuing a notice of cancellation to the corporation.

(6) A corporation must register under this section for each taxation year for which a tax credit is claimed under this Part.

Reconsiderations and appeals

137   (1) Any decision made under this Part by or on behalf of the Commissioner of Income Tax may be reconsidered and confirmed, reversed or varied by or on behalf of the Commissioner of Income Tax.

(2) Without limiting any provision of this Act or the federal Act, a corporation may appeal, in accordance with subsection (3), any of the following:

(a) a decision of the Commissioner of Income Tax to refuse to register a corporation under section 136;

(b) a decision of the Commissioner of Income Tax to cancel the registration of a corporation under section 136.

(3) An appeal must be brought in the Supreme Court, by way of a petition proceeding, within 120 days after the date of any notice of the decision provided by the Commissioner of Income Tax.

Filing requirements

138   (1) A corporation that wishes to claim a tax credit under this Part in respect of a taxation year must file, with the return of income filed by the corporation under section 29 for that taxation year, an application for the tax credit in the form, and containing the information, required by the Commissioner of Income Tax.

(2) A corporation is not entitled to a tax credit under this Part in respect of a taxation year unless, within 18 months after the end of the taxation year, the corporation files the form containing the information required under subsection (1).

Powers of audit

139   Without limiting any provision of this Act or the federal Act, for the purpose of determining whether a corporation is eligible for a tax credit under this Part, the Commissioner of Income Tax has powers equivalent to the federal minister under sections 230 (3), 231, 231.1 and 233 (1) of the federal Act, and for that purpose those sections apply.

Power to make regulations

140   (1) Without limiting section 48 (1) and (2), the Lieutenant Governor in Council may make regulations as follows:

(a) defining eligible activities;

(b) defining any word or expression used in this Part;

(c) prescribing products not included in the definition of "interactive digital media product" in section 132;

(d) prescribing an amount for the purpose of paragraph (a) of the description of "designated assistance" in section 134 (2);

(e) prescribing an application fee for the purpose of section 136 (2) (c).

(2) In making regulations under subsection (1), 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) define classes of corporations and make different regulations for different classes of corporations.

(3) Regulations made under subsection (1) may be made retroactive to September 1, 2010 or a later date, and if made retroactive are deemed to have come into force on the specified date.

Part 11 — Home Renovation Tax Credit for Seniors and Persons with Disabilities

Definitions

141   In this Part:

"eligible individual" means an individual, other than a trust, who meets the following requirements:

(a) the individual was resident in British Columbia on the last day of the taxation year;

(b) the individual

(i) was a qualifying individual for the taxation year in which a qualifying expenditure was paid in respect of a qualifying renovation to the individual's qualifying principal residence, or

(ii) was a qualifying relation of a qualifying individual at the end of the taxation year in which a qualifying expenditure was paid in respect of a qualifying renovation to the individual's qualifying principal residence;

"principal residence", in respect of an individual, means premises, including a non-seasonal mobile home, that are occupied by the individual as the individual's primary place of residence;

"qualifying expenditure", of an individual for a taxation year, means an outlay or expense made or incurred by, or on behalf of, the individual in the taxation year that is directly attributable to a qualifying renovation by the individual and includes such an outlay or expense for permits required for, or for the rental of equipment used in the course of, the qualifying renovation, but does not include such an outlay or expense

(a) to acquire goods that have been used, or acquired for use or lease, by the individual or by a qualifying relation of the individual, for any purpose before they were acquired by the individual or the qualifying relation of the individual,

(b) made or incurred under the terms of an agreement entered into

(i) before April 1, 2012, if the individual is a senior or a qualifying relation of a senior, or

(ii) before February 17, 2016, if the individual is

(A) a qualifying individual by reason of paragraph (b) of the definition of "qualifying individual", or

(B) a qualifying relation of another individual who is a qualifying individual by reason of paragraph (b) of the definition of "qualifying individual",

(c) to acquire a property that can be used independently of the qualifying renovation,

(d) that is the cost of annual, recurring or routine repair, maintenance or service,

(e) to acquire a household appliance,

(f) to acquire an electronic home-entertainment device,

(g) for financing costs in respect of the qualifying renovation,

(h) made or incurred for the purpose of gaining or producing income from a business or property, or

(i) in respect of goods or services provided by a person not dealing at arm's length with the individual, unless the person is registered for the purposes of Part IX of the Excise Tax Act (Canada);

"qualifying individual", in respect of a taxation year, means an individual who

(a) is a senior at the end of the taxation year, or

(b) is entitled to a deduction under section 118.3 (1) of the federal Act, or would have been entitled to that deduction if that section were read without reference to paragraph (c) of that section, for the taxation year;

"qualifying principal residence", of an individual for a taxation year, means a residence located in British Columbia that is,

(a) if the individual is a qualifying individual for the taxation year, the principal residence of the individual at any time during the taxation year or a residence that is reasonably expected to become the principal residence of the individual within 24 months after the end of the taxation year, or

(b) if, at the end of the taxation year, the individual is a qualifying relation of another individual who is a qualifying individual for the taxation year, the principal residence of the individual at any time during the taxation year and that is, at the same time, also the principal residence of the other individual, or a residence that is reasonably expected to become such a shared principal residence within 24 months after the end of the taxation year;

"qualifying relation", of an individual, means a person who is connected or related to the individual in any manner described in section 251 (6) or 252 (2) of the federal Act;

"qualifying renovation" means a prescribed improvement or an improvement

(a) that is part of a renovation or alteration of a qualifying principal residence of a qualifying individual or of the land on which the residence is situated, or that is part of the construction of the residence, that can reasonably be considered to be undertaken

(i) to enable the qualifying individual to gain access to, or to be mobile or functional within, the residence or the land, or

(ii) to reduce the risk of harm to the qualifying individual within the residence or the land, or in gaining access to the residence or the land,

(b) that

(i) is of an enduring nature and that is integral to the residence or the land on which the residence is situated, or

(ii) relates to the purchase and installation of a modular or removable version of an item of a type that can otherwise be installed as a permanent fixture to the residence or the land, including modular ramps and non-fixed bath lifts,

(c) whose primary purpose is not to increase the value of the residence or the land,

(d) that would ordinarily be undertaken by, or on behalf of, a person who has an impairment to enable the person to gain access to, or to be mobile or functional within, the person's residence or land, and

(e) that is not a prescribed excluded improvement;

"senior" means an individual who is 65 years of age or older.

Home renovation tax credit for seniors and persons with disabilities

142   (1) Subject to the other provisions of this section, an eligible individual may claim a tax credit for the taxation year in the amount determined by the formula:

A × B
where
A is 10%, and
B is the lesser of $10 000 and the amount determined by the formula:
C − D
where
C is the total of all amounts each of which is a qualifying expenditure of the individual that was paid by or on behalf of the individual during the taxation year and that has not been used by another individual in the calculation of a credit claimed by that other individual under this section, and
D is the total of all amounts each of which is received or receivable by any person, or that can reasonably be expected to be received by any person, in respect of a qualifying expenditure of the individual referred to in "C" and that is
(a) provided under any program financed by a municipal, provincial or federal government and that is designed to provide assistance with the cost of the construction, alteration or renovation of a residence or land on which the residence is situated,
(b) provided as a forgivable loan by a municipal, provincial or federal government and that is designed to provide permanent or temporary assistance with, or financing for, the cost of the construction, alteration or renovation of a residence or land on which the residence is situated, but only to the extent that the loan, or a portion of it, has not been repaid under a legal obligation to do so, or
(c) provided under any prescribed program.

(2) Subject to subsection (3), for the purposes of this section, a qualifying expenditure is deemed to have been paid on the earlier of the date on which the expenditure was paid and the date the expenditure became payable.

(3) If a qualifying expenditure in respect of a qualifying renovation is paid by an individual in 2 or more instalments, the total of all instalments with respect to the qualifying expenditure is deemed to have been paid on the earlier of the date on which the last instalment was paid and the date the last instalment became payable.

(4) A qualifying expenditure of an individual includes an outlay or expense made or incurred by a co-operative housing corporation, a strata corporation or a similar entity (in this subsection referred to as the "corporation"), in respect of a property that is owned, administered or managed by the corporation and that includes the qualifying principal residence of the individual, to the extent of the individual's share of that outlay or expense, if

(a) the outlay or expense would be a qualifying expenditure of the corporation if the corporation were a natural person and the property were the principal residence of that natural person, and

(b) the corporation has notified the individual, in writing, of the individual's share of the outlay or expense.

(5) A qualifying expenditure of an individual includes an outlay or expense made or incurred by a trust, in respect of a property that is owned by the trust and that includes the qualifying principal residence of the individual, to the extent of the share of that outlay or expense that is reasonably attributable to the individual, having regard to the amount of the outlays or expenses made or incurred in respect of the principal residence of the individual including, for this purpose, common areas relevant to more than one principal residence, if

(a) the outlay or expense would be a qualifying expenditure of the trust if the trust were a natural person and the property were the principal residence of that natural person, and

(b) the trust has notified the individual, in writing, of the individual's share of the outlay or expense.

(6) For the purposes of this section, the following rules apply:

(a) if more than one individual is entitled to claim a tax credit under this section for a taxation year in respect of a single residence that is the qualifying principal residence of all of the individuals at the same time during the taxation year, the total amount of qualifying expenditures that may be claimed by all of the individuals in respect of the residence cannot exceed $10 000;

(b) subject to subsection (7.1), if an individual and the individual's spouse or common-law partner on December 31 of a taxation year are both entitled to claim a tax credit under this section, the total amount of qualifying expenditures that may be claimed by the 2 individuals for the taxation year cannot exceed $10 000.

(7) If the individuals cannot agree as to what portion of the amount each can claim under subsection (6) (a) or (b), the minister may fix the portions.

(7.1) Subsection (6) (b) does not apply if, on December 31 of the taxation year, the individual and the individual's spouse or common-law partner

(a) have been living separate and apart for a period of at least 90 days because of a breakdown of their marriage or common-law relationship, or

(b) are living separate and apart because of medical necessity.

(8) An outlay or expense is not a qualifying expenditure unless the work to implement the qualifying renovation to which that outlay or expense is directly attributable begins within a reasonable time after the outlay or expense is made or incurred.

Part-year residents

143   (1) An individual who is resident in Canada for only part of a taxation year is entitled to claim for the year only the amount the individual would be entitled to claim for the year under section 142 [home renovation tax credit for seniors and persons with disabilities] that can reasonably be considered wholly applicable to any period in the year throughout which the individual was resident in Canada, computed as though that period were the whole taxation year.

(2) The amount that may be claimed under section 142 must not exceed the amount that the individual would have been entitled to claim under this section if the individual had been resident in Canada throughout the year.

Bankruptcy

144   (1) An individual who becomes bankrupt in a calendar year is entitled to claim, for each taxation year that ends in the calendar year, only those amounts that the individual is entitled to claim for the taxation year under section 142 [home renovation tax credit for seniors and persons with disabilities] as can reasonably be considered wholly applicable to the taxation year.

(2) The sum of all amounts that may be claimed under section 142 for all taxation years of the individual ending in a calendar year must not exceed the total amount that the individual would have been entitled to claim under that section in respect of the calendar year if the individual had not become bankrupt.

(3) If an individual becomes bankrupt in a calendar year and, when the bankruptcy occurs, the individual is not a qualifying individual for the taxation year that ends at the time of the bankruptcy but becomes a qualifying individual for the taxation year that ends at the end of the calendar year, the bankrupt individual is eligible to claim a tax credit under section 142 for the taxation year that ends at the time of the bankruptcy.

(4) If an individual becomes bankrupt in a calendar year and, when the bankruptcy occurs, the individual is a qualifying relation of another individual who is not a qualifying individual at that time but becomes a qualifying individual for the taxation year that ends at the end of the calendar year, the bankrupt individual is eligible to claim a tax credit under section 142 for the taxation year that ends at the time of the bankruptcy.

Death

145   (1) If, when an individual dies, the individual is not a senior but would have become a senior by the end of the calendar year in which the individual dies, the individual is eligible to claim a tax credit under section 142 [home renovation tax credit for seniors and persons with disabilities] for the taxation year that ends on the date of death.

(2) If, when an individual dies, the individual is a qualifying relation of another individual who is not a senior at that time but becomes a senior by the end of the calendar year in which the death occurs, the deceased individual is eligible to claim a tax credit under section 142 for the taxation year that ends on the date of death.

(3) If an individual is a qualifying relation of another individual who, immediately before death, is not a senior but who would have become a senior by the end of the calendar year in which the death occurs, the individual who is the qualifying relation is eligible to claim a tax credit under section 142 for a taxation year that ends in the calendar year as if the other individual had not died.

Relationship to other credits

146   (1) Section 248 (28) of the federal Act applies for the purposes of section 142 [home renovation tax credit for seniors and persons with disabilities].

(2) Despite section 248 (28) (b) of the federal Act, an individual may include qualifying expenditures in determining both an amount under section 4.5 (1) [medical expense credit] and an amount under section 142 (1), if those amounts otherwise qualify to be included for the purposes of those provisions.

Deemed payment of tax

147   An individual who has claimed and is eligible for a tax credit under this Part for a taxation year is deemed to have paid, at the time referred to in section 156.1 (4) of the federal Act, as that section relates to the taxation year, the amount of the credit on account of the individual's tax payable under this Act.

Filing requirements

148   An individual who wishes to claim the tax credit under this Part must file, with the individual's return of income filed under section 29 [application of federal provisions — returns of income and assessments of tax] for the taxation year,

(a) an application for the tax credit in the form, and containing the information, required by the Commissioner of Income Tax, and

(b) other records required by the Commissioner of Income Tax.

Powers of audit

149   Without limiting any provision of this Act or the federal Act, for the purpose of determining eligibility for the tax credit under this Part, the Commissioner of Income Tax has powers equivalent to the federal minister under sections 230 (3), 231, 231.1 and 233 of the federal Act, and for that purpose those sections apply.

Power to make regulations

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

(a) prescribing improvements for the purpose of the definition of "qualifying renovation" in section 141 [definitions];

(b) prescribing excluded improvements for the purpose of the definition of "qualifying renovation" in section 141;

(c) prescribing programs for the purpose of paragraph (c) of the description of "D" in section 142 (1) [home renovation tax credit for seniors and persons with disabilities].

(2) A regulation made under this Part may be made retroactive to April 1, 2012 or a later date, and if made retroactive is deemed to have come into force on the specified date.

Part 12 — BC First-Time New Home Buyers' Bonus

Definitions

151   (1) In this Part:

"assessment" means an assessment, reassessment or additional assessment under this Act, the federal Act or the Excise Tax Act (Canada);

"commissioner" means the Commissioner of Income Tax;

"eligible individual" means

(a) an individual who enters into an eligible transaction, if the individual

(i) is a first-time new home buyer,

(ii) is a resident of British Columbia in the eligible taxation year, and

(iii) filed a return of income for the eligible taxation year, or

(b) a prescribed individual who enters into an eligible transaction,

but does not include

(c) an individual who has a spouse or a common-law partner at the time the eligible transaction is entered into, unless the individual's spouse or common-law partner is also a person referred to in subparagraphs (i), (ii) and (iii) of paragraph (a) or a person referred to in paragraph (b),

(d) an individual who, together with one or more other individuals, enters into an eligible transaction, unless all of the individuals are individuals referred to in paragraph (a) or (b),

(e) an individual who is confined to a prison or similar institution for a period of at least 90 days during which period the individual enters into the agreement of purchase and sale for an eligible transaction, or

(f) a prescribed individual;

"eligible taxation year", in relation to an individual, means

(a) the 2011 taxation year, if the individual is resident in British Columbia at the end of December 31, 2011,

(b) the 2012 taxation year,

(i) if the individual is not resident in British Columbia at the end of December 31, 2011 but is resident in British Columbia at the end of December 31, 2012,

(ii) if the individual is an individual referred to in paragraph (c) of the definition of "eligible individual" and the individual or the individual's spouse or common-law partner is not resident in British Columbia at the end of December 31, 2011 but both the individual and the individual's spouse or common-law partner are resident in British Columbia at the end of December 31, 2012, or

(iii) if the individual is an individual referred to in paragraph (d) of the definition of "eligible individual" and all of the individuals referred to in that paragraph are not resident in British Columbia at the end of December 31, 2011 but all are resident in British Columbia at the end of December 31, 2012, or

(c) a prescribed year;

"eligible transaction" means

(a) an eligible transaction referred to in subsection (2), or

(b) a prescribed transaction,

but does not include

(c) an eligible transaction referred to in subsection (2) that is excluded from this definition by regulation;

"family income" means, of an individual for a taxation year, the total of the following:

(a) the income of the individual for the taxation year;

(b) if the individual has a spouse or common-law partner at the time the eligible transaction is entered into, the income of the spouse or common-law partner for the taxation year;

"federal HST regulation" means the New Harmonized Value-added Tax System Regulations, No. 2 made under the Excise Tax Act (Canada);

"first-time new home buyer" means an individual who

(a) has not previously held a registered interest in land or otherwise owned an interest in a residential complex, whether in British Columbia or elsewhere, that constituted the individual's primary place of residence, and

(b) has not previously obtained a tax credit under this Part;

"individual" does not include a trust;

"qualifying individual" means an eligible individual who is the prescribed person or the person in a prescribed class in respect of prescribed property, within the meaning of section 256.21 (1) of the Excise Tax Act (Canada), for the purpose of the rebate under that section;

"return of income" means a return of income as defined in paragraph (a) of the definition of "return of income" in section 122.6 of the federal Act.

(2) The following are eligible transactions:

(a) a written agreement of purchase and sale for the purchase of a building and land that is situated in British Columbia, if the building and land is a residential complex that is a single unit residential complex or a residential condominium unit that is acquired for use as the primary place of residence of an individual and

(i) the individual

(A) is a prescribed person under section 41 (3) of the federal HST regulation who has made an application for a rebate in accordance with section 41 (4) of that regulation, or

(B) is a prescribed person under section 41 (3) of the federal HST regulation with respect to whom an application has been made in accordance with section 41 (6) of that regulation, and

(ii) the individual,

(A) on or after February 21, 2012 and before April 1, 2013, has entered into the agreement of purchase and sale with respect to the building and land, and

(B) subject to subsection (3) of this section, ownership or possession of the residential complex is transferred to the individual before April 1, 2013;

(b) a written agreement of purchase and sale for the purchase of a building or part of a building that is situated in British Columbia, if the building or part of a building is a residential complex that is a single unit residential complex or a residential condominium unit that is acquired for use as the primary place of residence of the individual and

(i) the individual

(A) is a prescribed person under section 43 (2) of the federal HST regulation who has made an application for a rebate in accordance with section 43 (3) of that regulation, or

(B) is a prescribed person under section 43 (2) of the federal HST regulation with respect to whom an application has been made in accordance with section 43 (4) of that regulation, and

(ii) the individual

(A) has, on or after February 21, 2012 and before April 1, 2013, entered into the agreement of purchase and sale with respect to the building or part of the building that forms part of the residential complex, and

(B) ownership and possession of the building or part of the building is transferred to the individual before April 1, 2013;

(c) an agreement for the acquisition of a share of the capital stock of a cooperative housing corporation, if an individual has acquired the share for the purpose of using a residential unit in a residential complex of the corporation that is situated in British Columbia as the primary place of residence of the individual and

(i) the individual is a prescribed person under section 45 (3) of the federal HST regulation who has made an application for a rebate in accordance with section 45 (4) of that regulation,

(ii) the individual has, on or after February 21, 2012 and before April 1, 2013, entered into the agreement to acquire the share with respect to that place of residence, and

(iii) ownership of the share transfers before April 1, 2013;

(d) a written agreement for the acquisition of land that is situated in British Columbia on which the construction or substantial renovation of a residential complex, other than a mobile home or floating home, is undertaken by an individual, or by a person the individual has engaged to construct or substantially renovate a residential complex, for use as the primary place of residence of the individual, if

(i) the individual is a prescribed person under section 46 (3) of the federal HST regulation who has made an application for a rebate in accordance with section 46 (6) of that regulation,

(ii) the individual has, on or after February 21, 2012 and before April 1, 2013, entered into the agreement for the acquisition of land, and

(iii) the residential complex is substantially completed or occupied as the primary place of residence before April 1, 2013;

(e) a written agreement of purchase and sale for the acquisition of a mobile home or floating home that is, or forms part of, a residential complex that an individual has acquired for use in British Columbia as the primary place of residence of the individual if

(i) the individual has entered into the agreement of purchase and sale with respect to the mobile home or floating home, and an agreement for the acquisition of the land, if any, to which the mobile home or floating home is attached, on or after February 21, 2012 and before April 1, 2013, and

(ii) the individual is a prescribed person under section 41 (3) of the federal HST regulation

(A) who has made an application for a rebate in accordance with section 41 (4) of that regulation, or with respect to whom an application has been made in accordance with section 41 (6) of that regulation, and

(B) ownership or possession of the mobile home or floating home is transferred to the individual before April 1, 2013, or

(iii) the individual is a prescribed person under section 43 (2) of the federal HST regulation

(A) who has made an application for a rebate in accordance with section 43 (3) of that regulation, or with respect to whom an application has been made in accordance with section 43 (4) of that regulation, and

(B) ownership and possession of the mobile home or floating home is transferred to the individual before April 1, 2013, or

(iv) the individual is a prescribed person under section 46 (3) of the federal HST regulation

(A) who has made an application for a rebate in accordance with subsection 46 (6) of that regulation, and

(B) the mobile home or floating home is substantially completed or occupied as the primary place of residence before April 1, 2013.

(3) If the residential complex referred to in subsection (2) (a) is a residential condominium unit and possession of that unit is transferred to an individual before the condominium complex in which the unit is situated is registered as a condominium, in order to qualify as an eligible transaction under that subsection,

(a) the condominium complex must be registered before January 31, 2013, or

(b) ownership of the unit must be transferred to the individual before April 1, 2013.

(4) Subject to subsection (5), for the purposes of this Part, the date on which an agreement of purchase and sale, an agreement for the acquisition of a share or an agreement for the acquisition of land is entered into is deemed to be the date of the signature of the last party to the agreement.

(5) If an agreement of purchase and sale, an agreement for the acquisition of a share or an agreement for the acquisition of land is amended or replaced by one or more new agreements, the date on which the agreement is entered into is deemed to be the date of the signature of the last party to the original agreement before its amendment or replacement.

(6) For the purpose of this Part, sections 122.61 (3) (a), 122.61 (3.1) (a), and 122.7 (12) of the federal Act apply.

(7) For the purposes of this section, a single unit residential complex includes a single unit residential complex as defined in section 254 (1) of the Excise Tax Act (Canada) as it read on February 21, 2012.

(8) For the purposes of this section, unless they are at variance with the definitions in this section, the definitions in Part IX of the Excise Tax Act (Canada) as it read on February 21, 2012, and the definitions and interpretations made by the regulations under that Act as they read on that date, apply.

Tax credit for first-time new home buyers

152   A qualifying individual may claim a tax credit for an eligible taxation year equal to the excess, if any, of

A − B
where
A is the lesser of the following amounts:
(a) the amount of the new housing rebate payable under section 256.21 (1) of the Excise Tax Act (Canada) with respect to an eligible transaction, and
(b) $10 000, and
B is
(a) 20% of the amount, if any, by which the family income of the individual for the eligible taxation year exceeds $150 000, or
(b) if a qualifying individual has a spouse or a common-law partner at the time the individual entered into the eligible transaction, 10% of the amount, if any, by which the family income of the individual for the eligible taxation year exceeds $150 000.

Deemed payment of tax

153   An individual who has claimed and is eligible for a tax credit under this Part for a taxation year is deemed to have paid, at the time referred to in section 156.1 (4) of the federal Act, as that section relates to the taxation year, the amount of the credit on account of the individual's tax payable under this Act.

Application for tax credit

154   (1) An individual may file with the commissioner an application for a tax credit under this Part for an eligible taxation year.

(2) The application must be in the form and contain the information required by the commissioner.

(3) In addition to the application, the individual must file with the application, or within a later period approved by the commissioner, any other information or records required by the commissioner.

(4) An application with respect to an eligible transaction must be filed within the prescribed time for filing an application for the related new housing rebate under section 256.21 (2) of the Excise Tax Act (Canada).

(5) Despite subsection (4), an application under this section must be filed on or before March 31, 2015.

Determination of tax credit

155   (1) The commissioner must examine an application and other information or records filed under section 154 [application for tax credit] and determine the amount of any tax credit to which the individual is entitled under this Part.

(2) If the commissioner determines the amount of any tax credit for a taxation year, the commissioner must send to the individual a notice of determination that specifies the amount of the tax credit for the taxation year.

(3) The commissioner

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

(b) may determine the amount of a tax credit for a taxation year despite the supply of the application or other information or records by or on behalf of the individual.

Determination period

156   The commissioner may determine the amount of any tax credit or penalty in respect of a taxation year within the following time periods:

(a) the later of the following:

(i) three years after the date the notice of determination is sent under section 155 [determination of tax credit];

(ii) one year after the earlier of the following if an individual is issued a notice of assessment:

(A) the day on which the commissioner receives notification from an individual under section 158 [notice to commissioner of subsequent assessment];

(B) the day on which the commissioner receives notification from the taxing authority under this Act that the individual has been issued a notice of assessment;

(iii) one year after the day on which the commissioner receives notification from the taxing authority under this Act that the spouse or common-law partner of an individual has been issued a notice of assessment that changes an amount relevant to the calculation of the individual's tax credit under this Part;

(b) at any time,

(i) if the individual has made any misrepresentation or committed any fraud in filing the individual's application or supplying information under this Part,

(ii) to carry out the effect of a waiver or cancellation under section 163 [waiver or cancellation of penalty], or

(iii) to carry out the effect of a decision of the Provincial minister under section 164 [appeal to minister].

Determination valid and binding

157   Subject to being varied on appeal or by redetermination, a determination under this Part is valid and binding despite any error, defect or omission in the determination or in procedure.

Notice to commissioner of subsequent assessment

158   If an individual is issued a notice of assessment that changes an amount relevant to the calculation of the individual's tax credit under this Part, the individual, within 90 days after the notice was issued or within a later period approved by the commissioner, must

(a) file with the commissioner a notice in the form and containing the information required by the commissioner, and

(b) include with the notice any other information or records required by the commissioner.

Payment of tax refund

159   (1) If an overpayment is created as the result of the tax credit, the Provincial minister must pay, out of the consolidated revenue fund, the tax refund payable to an individual under this Part in the amount specified in the notice of determination sent to the individual.

(2) Despite the Financial Administration Act and the Interest on Overdue Accounts Payable Regulation, B.C. Reg. 215/83, no interest is payable with respect to the tax refund referred to in subsection (1).

Tax refund cannot be attached or assigned

160   A tax refund referred to in section 159 (1) [payment of tax refund]

(a) cannot be charged or given as security,

(b) cannot be assigned except to a prescribed person,

(c) cannot be garnished or attached, and

(d) is exempt from execution or seizure.

Imposition of administrative penalty

161   (1) The commissioner may determine and impose a penalty on an individual who is liable to a penalty under section 162 [administrative penalties].

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

Administrative penalties

162   (1) In this section, "excess refund" means the amount by which the tax refund under this Part that would have been claimed by the individual, if the tax refund had been calculated on the basis of the information provided in the application, return, report, notice or other record, exceeds the individual's tax refund for the taxation year.

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

(a) $100, and

(b) 100% of the excess refund.

(3) An individual who fails to file with the commissioner a notice in accordance with section 158 [notice to commissioner of subsequent assessment], is liable, in respect of each failure, to a penalty equal to the greater of

(a) $100, and

(b) $25 for each day after which the notice was required to be filed under that section, to a maximum of $2 500.

Waiver or cancellation of penalty

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

Appeal to minister

164   (1) An individual may appeal the following to the Provincial minister:

(a) a determination of a tax credit under section 155 [determination of tax credit];

(b) an imposition of a penalty under section 161 [imposition of administrative penalty].

(2) An appeal under subsection (1)

(a) must be made within 90 days after the date on the notice of determination in respect of the matter being appealed, and

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

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

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

(a) confirm, reverse or vary the commissioner's decision or determination, and

(b) notify the appellant in writing of the minister's decision.

Liability for recoverable amount

165   (1) An individual is liable to pay to the government the following:

(a) the amount by which the tax refund under this Part that was paid to or on behalf of the individual or set-off under the Financial Administration Act exceeds the tax refund that the individual is entitled to receive;

(b) the amount of any penalties imposed on the individual under section 161 [imposition of administrative penalty].

(2) Despite the Financial Administration Act and the Interest on Overdue Accounts Receivable Regulation, B.C. Reg. 214/83, no interest is payable with respect to the amount referred to in subsection (1).

Collection of recoverable amount

166   Part 5 of the International Business Activity Act applies for the purpose of collecting an amount referred to in section 165 (1) [liability for recoverable amount].

Powers of audit

167   Without limiting any provision of this Act or the federal Act, for the purpose of determining an amount under this Part, the commissioner has powers equivalent to the federal minister under sections 231 to 231.5, 231.7 and 233 (1) of the federal Act, and for that purpose those sections apply.

Application of other provisions

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

(a) section 31 [instalment payments: farmers and fishers];

(b) section 32 [instalment payments: other individuals];

(c) section 34 [returns, payments and interest];

(d) section 35 [refund for tax credits];

(e) section 36 [amount on which instalment calculated];

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

(g) section 39 [penalty for late or deficient instalments];

(h) section 39.1 [misrepresentation of tax matter by third party];

(i) section 40 [refunds].

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

(a) section 1 (8.1) [interpretation];

(b) section 29 [returns of income and assessments of tax];

(c) section 30 [reassessment and amended return];

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

(e) section 41 [objections to assessments and extension of time];

(f) section 42 [appeal by taxpayer];

(g) section 43 [reply];

(h) section 44 [procedure];

(i) section 45 [irregularities, extension of time and private hearings];

(j) section 46 [court practice];

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

(l) section 49 [debts to Her Majesty];

(m) section 50 [certificates];

(n) section 51 [warrant];

(o) section 52 [acquisition of debtor's property];

(p) section 53 [payment of money seized from tax debtor];

(q) section 54 [seizure of goods];

(r) section 55 [taxpayer leaving Canada or defaulting];

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

(t) section 61 [offence and penalty];

(u) section 62 [further offences];

(v) section 70 [payments on account].

Administration

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

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

Delegation of powers

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

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

Power to make regulations

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

(a) prescribing individuals or classes of individuals for the purposes of paragraphs (b) and (f) of the definition of "eligible individual" in section 151 (1) [definitions];

(b) prescribing taxation years for the purpose of the definition of "eligible taxation year" in section 151 (1);

(c) prescribing transactions or classes of transactions for the purposes of paragraphs (b) and (c) of the definition of "eligible transaction" in section 151 (1);

(d) prescribing persons or classes of persons for the purpose of section 160 (b) [tax refund cannot be attached or assigned];

(e) defining a word or expression used in this Part.

(2) A regulation made under this Part may be made retroactive to February 21, 2012 or a later date, and if made retroactive is deemed to have come into force on the specified date.

Part 13 — Natural Gas Tax Credit

Division 1 — Definitions

Definitions

172   In this Part:

"commissioner" means the Commissioner of Income Tax;

"determination" includes a redetermination;

"LNG" means natural gas from which natural gas liquids have been predominantly removed and that is liquefied;

"LNG facility inlet meter", in relation to a major LNG facility, means a meter at which the volume of natural gas is first measured after the natural gas is delivered to the major LNG facility;

"major LNG facility" means a facility in British Columbia that

(a) is used or intended to be used to process natural gas, and

(b) is capable of producing a prescribed amount of LNG per year;

"natural gas" has the same meaning as in the Petroleum and Natural Gas Act, but does not include LNG;

"natural gas liquids" means butane, ethane, propane or pentanes plus and any other condensates, or any combination of them, whether in gaseous or liquid form;

"notionally acquired", in relation to a corporation, means a deemed purchase under section 178 [deemed purchase of natural gas] by the corporation of natural gas at an LNG facility inlet meter;

"petroleum" has the same meaning as in the Petroleum and Natural Gas Act;

"qualifying corporation", for a taxation year, means a corporation that

(a) has a permanent establishment in British Columbia at any time during the taxation year, and

(b) whose principal business in British Columbia during the taxation year consists of one or more of the following:

(i) the exploration for or development of petroleum or natural gas;

(ii) the production, gathering, processing, refining, marketing, storage or disposal of petroleum, natural gas or LNG;

(iii) the construction, use or operation of a major LNG facility;

(iv) the liquefaction of natural gas;

(v) a prescribed activity,

but does not include a corporation that is of a type or class of corporation prescribed by regulation.

Division 2 — Natural Gas Tax Credit

Natural gas tax credit

173   (1) A qualifying corporation may claim a tax credit for a taxation year that begins on or after January 1, 2020 in an amount not exceeding the least of the following:

(a) the amount determined for the taxation year under subsection (2);

(b) subject to section 175 [tax calculation change] and subsection (11) of this section, the amount determined by the following formula:

amount = A − B
where
A=the amount, if any, of the tax payable by the corporation for the taxation year under section 14 (2) or 16 (1) (b), as the case may be;
B=the amount, if any, of the tax that would be payable by the corporation for the taxation year under section 14 (2) or 16 (1) (b), as the case may be, if the applicable percentage in the provision were read as a reference to the greater of the following:
       (i) the applicable percentage minus 3 percentage points;
       (ii) 9%;

(c) the amount of tax that would otherwise be payable by the corporation under this Act for the taxation year but for the tax credit under this subsection.

(2) The amount eligible to be claimed under subsection (1) (a) for the taxation year is an amount equal to the total of the following:

(a) the qualifying corporation's annual natural gas tax credit determined for that taxation year under subsection (3);

(b) subject to subsections (8) and (9), the total of the qualifying corporation's annual natural gas tax credits for all preceding taxation years less any amounts that were previously claimed by the corporation under subsection (1) for those preceding taxation years.

(3) A qualifying corporation's annual natural gas tax credit for a taxation year is the total of the following:

(a) 0.5% of the corporation's eligible cost of natural gas for the taxation year;

(b) the amount, if any, determined for the taxation year under subsection (4);

(c) if the corporation is a member of a partnership, the amount, if any, determined for the taxation year under subsection (6).

(4) Subject to section 174, the amount to be included under subsection (3) (b) in determining the qualifying corporation's annual natural gas tax credit for the taxation year is the prescribed percentage, if any, of the corporation's eligible cost of natural gas for that taxation year.

(5) A qualifying corporation's eligible cost of natural gas for a taxation year is an amount equal to the total cost, as determined under Division 3 of this Part, of all natural gas notionally acquired in the taxation year by the corporation at an LNG facility inlet meter for a major LNG facility.

(6) The amount to be included under subsection (3) (c) in determining the qualifying corporation's annual natural gas tax credit for the taxation year is the amount equal to the total of all amounts each of which is the corporation's appropriate portion of a partnership's annual natural gas tax credit for the fiscal period of the partnership ending in the taxation year of the qualifying corporation, as determined under subsection (7).

(7) For the purposes of subsection (6), the following rules apply for determining the amount of a qualifying corporation's appropriate portion of a partnership's annual natural gas tax credit for a fiscal period of the partnership:

(a) the amount of the partnership's annual natural gas tax credit is to be determined by applying section 174 and subsections (3) to (5) of this section as if the partnership were a qualifying corporation and the partnership's fiscal period were its taxation year;

(b) the appropriate portion is that portion that may reasonably be considered to be the qualifying corporation's share of the amount determined under paragraph (a) of this subsection.

(8) For the purposes of subsection (2) (b), if a corporation

(a) does not meet, for a particular taxation year, the requirement set out in paragraph (a) of the definition of "qualifying corporation" in section 172, and

(b) was a qualifying corporation for a taxation year preceding the particular taxation year,

for all taxation years subsequent to the particular taxation year, the total of the corporation's annual natural gas tax credits for all taxation years preceding the particular taxation year, less any amounts that were previously claimed by the corporation under subsection (1) for those preceding taxation years, is deemed to be nil.

(9) For the purposes of subsection (2) (b), if a qualifying corporation is subject to a loss restriction event, within the meaning of section 251.2 (2) of the federal Act, at any time in a particular taxation year, the total of the corporation's annual natural gas tax credits for all taxation years preceding the particular taxation year, less any amounts that were previously claimed by the corporation under subsection (1) for those preceding taxation years, is deemed to be nil.

(10) In the description of "B" in subsection (1) (b), "applicable percentage",

(a) in relation to section 14 (2), means the percentage referred to in that section, and

(b) in relation to section 16 (1) (b), means the highest percentage referred to in that section.

(11) If the amount determined under subsection (1) (b) would, but for this subsection, be a negative amount, that amount is deemed to be nil.

Credit calculation change

174   (1) In this section, "credit calculation change" means the prescribing of a percentage for the purposes of section 173 (4), including any amendment to the regulations that effects a change in or the repeal of a percentage prescribed for the purposes of that section.

(2) If, during the taxation year of a qualifying corporation, there are one or more credit calculation changes, the amount to be included under section 173 (3) (b) in determining the corporation's annual natural gas tax credit for that taxation year is to be determined in accordance with the following:

(a) the corporation must divide its taxation year into notional taxation years as follows:

(i) the first of those notional taxation years begins on the first day of the corporation's taxation year and ends on the day before the day on which the first credit calculation change that occurs in its taxation year takes effect;

(ii) subject to subparagraph (iii), a notional taxation year will begin on each day in the corporation's taxation year on which a credit calculation change takes effect and will end on the day before the day in its taxation year on which the next credit calculation change takes effect;

(iii) the last notional taxation year begins on the day on which the last credit calculation change that occurs in the corporation's taxation year takes effect and ends on the last day of its taxation year;

(b) the corporation must, for each notional taxation year within the corporation's taxation year, multiply the percentage prescribed for the purposes of section 173 (4), if any, on the first day of that notional taxation year by an amount equal to the total cost, as determined under Division 3 of this Part, of all natural gas notionally acquired in the notional taxation year by the corporation at an LNG facility inlet meter for a major LNG facility;

(c) the corporation must add to the amount determined under paragraph (b) for the first notional taxation year within the corporation's taxation year the amounts determined under paragraph (b) for each of the other notional taxation years within its taxation year;

(d) the total amount determined under paragraph (c) is the amount to be included under section 173 (3) (b) in determining the corporation's annual natural gas tax credit for the taxation year.

Tax calculation change

175   (1) In this section, "tax calculation change" means any amendment to this Act that effects a change to any rate that is to be used for the purposes of determining the amount under section 173 (1) (b) [natural gas tax credit].

(2) If, during the taxation year of a qualifying corporation, there are one or more tax calculation changes, the amount under section 173 (1) (b) for that taxation year must be determined in accordance with the following:

(a) the corporation must divide its taxation year into notional taxation years as follows:

(i) the first of those notional taxation years begins on the first day of the corporation's taxation year and ends on the day before the day on which the first tax calculation change that occurs in its taxation year takes effect;

(ii) subject to subparagraph (iii), a notional taxation year will begin on each day in the corporation's taxation year on which a tax calculation change takes effect and will end on the day before the day in its taxation year on which the next tax calculation change takes effect;

(iii) the last notional taxation year begins on the day on which the last tax calculation change that occurs in the corporation's taxation year takes effect and ends on the last day of its taxation year;

(b) the corporation must, for each notional taxation year within the corporation's taxation year, determine, in accordance with sections 14 (2), 16 (1) (b) and 173 (1) (b) as those provisions read on the first day of that notional taxation year, the amount described in section 173 (1) (b) if that amount were determined

(i) on the corporation's taxable income for the whole of its taxation year, and

(ii) as if the wording of those provisions applied throughout the whole of its taxation year;

(c) the corporation must, for each notional taxation year within the corporation's taxation year, multiply the amount determined for that notional taxation year under paragraph (b) by the fraction obtained by dividing the number of days in that notional taxation year by the number of days in the corporation's taxation year;

(d) the corporation must add to the amount determined under paragraph (c) for the first notional taxation year within the corporation's taxation year the amounts determined under paragraph (c) for each of the other notional taxation years within its taxation year;

(e) the total amount determined under paragraph (d) is the amount to be used under section 173 (1) (b) for the corporation's taxation year.

Amalgamations and wind ups

176   (1) If, on or after January 1, 2020, 2 or more corporations amalgamate within the meaning of section 87 (1) of the federal Act, the new corporation is deemed, for the purposes of this Part, to be a continuation of each of its predecessor corporations.

(2) If, on or after January 1, 2020, a subsidiary corporation is wound up within the meaning of section 88 (1) of the federal Act, the parent corporation is deemed, for the purposes of this Part, to be a continuation of the subsidiary corporation.

Division 3 — Cost of Natural Gas

Definitions for this Division

177   In this Division:

"feedstock pipeline" means that portion of a natural gas pipeline from and including a feedstock pipeline inlet on the natural gas pipeline to an LNG facility inlet meter;

"feedstock pipeline inlet" means a meter station that is

(a) located in British Columbia on a natural gas pipeline, and

(b) designated by regulation in respect of a major LNG facility;

"month", in relation to a corporation's taxation year, means a calendar month or partial calendar month in the corporation's taxation year;

"reference point" means the prescribed reference point.

Deemed purchase of natural gas

178   If a qualifying corporation owns natural gas immediately after the natural gas passes through an LNG facility inlet meter for a major LNG facility, the corporation is deemed, for the purposes of this Part, to purchase that natural gas at that LNG facility inlet meter.

Cost of natural gas notionally acquired in month

179   (1) For each month in a qualifying corporation's taxation year, the corporation must calculate the cost of all natural gas notionally acquired by the corporation in that month at an LNG facility inlet meter for a major LNG facility.

(2) For the purposes of this Part, the cost of all natural gas notionally acquired in a month by a qualifying corporation at an LNG facility inlet meter for a major LNG facility is the amount equal to the total of the following:

(a) the notional cost determined under section 180 of natural gas notionally acquired in the month by the corporation at the LNG facility inlet meter for the major LNG facility;

(b) the transportation cost determined under section 181 for natural gas notionally acquired in the month by the corporation at the LNG facility inlet meter for the major LNG facility.

Notional cost of natural gas notionally acquired in month

180   For the purposes of section 179 (2) (a), the notional cost of natural gas notionally acquired in a month by a qualifying corporation at an LNG facility inlet meter for a major LNG facility is the amount determined by the following formula:

notional cost = energy content × fuel and losses adjustment × reference price
where
energy
content
=the amount, expressed in gigajoules, determined by multiplying the following:
     (a) the volume of natural gas notionally acquired in the month by the corporation at the LNG facility inlet meter for the major LNG facility;
     (b) the heating value of that natural gas as determined at the LNG facility inlet meter;
fuel and losses
adjustment
=the total determined by adding 100% and the corporation's pipeline fuel and losses adjustment, determined in accordance with the regulations, in respect of the major LNG facility and for the month, which adjustment may be a positive or negative percentage;
reference price=the amount per gigajoule determined for the month by the minister charged with the administration of the Petroleum and Natural Gas Act, which amount is, in the opinion of that minister, the fair market value of natural gas acquired in the month at the reference point, as determined in accordance with the regulations.

Transportation cost for natural gas notionally acquired in month

181   For the purposes of section 179 (2) (b) [cost of natural gas notionally acquired in month], the transportation cost of natural gas notionally acquired in a month by a qualifying corporation at an LNG facility inlet meter for a major LNG facility is the total of all amounts each of which is an amount paid or payable by the corporation for the delivery of that natural gas through a feedstock pipeline.

Division 4 — Administration

Definition for this Division

182   In this Division, "assessable amount", in relation to a corporation, means

(a) an amount payable under section 198 [excess refund] by the corporation,

(b) any penalties payable under this Part by the corporation, and

(c) any interest payable under this Part by the corporation.

Application for tax credit

183   (1) A corporation that wishes to claim a tax credit under this Part in respect of a taxation year must file an application for the tax credit in the form and manner, and containing the information and records, required by the commissioner.

(2) A corporation is not entitled to a tax credit under this Part in respect of a taxation year unless

(a) the corporation, within 18 months after the end of the taxation year, files with the commissioner the form containing the information and records required under subsection (1), and

(b) the corporation, within 3 years after the end of the taxation year or a later period approved by the commissioner, files with the commissioner proof satisfactory to the commissioner that the following amounts payable by the corporation for the taxation year have been paid:

(i) any amount payable under section 158 of the federal Act, as that section applies for the purposes of this Act;

(ii) any amount payable under section 158 of the federal Act.

Determination of tax credit

184   The commissioner must examine an application and other information or records filed under section 183 by a corporation and determine the amount of any tax credit to which the corporation is entitled under this Part.

Deemed payment of tax

185   A corporation that has claimed and is entitled to a tax credit under this Part for a taxation year is deemed to have paid, at the time referred to in section 157 (1) (b) of the federal Act, as that section relates to the taxation year, the amount of that credit on account of the corporation's tax payable under this Act for the taxation year.

Payment of tax refund

186   (1) If an overpayment is created as the result of a tax credit under this Part, the Provincial minister must pay, out of the consolidated revenue fund, the tax refund payable to a corporation under this Part in the amount specified in the notice of determination sent to the corporation.

(2) Despite subsection (1), if the amount of the tax refund payable under that subsection is less than $10, the amount of the tax refund payable is deemed to be nil.

Determination period

187   (1) The commissioner may determine the amount of any tax credit, or determine and impose an assessable amount, in respect of a taxation year within the following time periods:

(a) the later of the following:

(i) 4 years after the date the initial notice of determination for the taxation year is sent under section 189 (1) [notice of determination];

(ii) one year after the earlier of the following if the corporation is issued a notice of assessment:

(A) the day on which the commissioner receives notification from the corporation under section 190 [notice to commissioner of subsequent assessment];

(B) the day on which the commissioner receives notification from the taxing authority under this Act that the corporation has been issued a notice of assessment;

(b) at any time,

(i) if a person has made any misrepresentation or committed any fraud in filing the corporation's application or supplying information or records under this Part,

(ii) if a waiver filed under subsection (2) by the corporation for the taxation year is in effect at that time,

(iii) to give effect to a waiver or cancellation under section 193 [waiver or cancellation of penalty], or

(iv) to give effect to a decision of the Provincial minister under section 201 [appeal to Provincial minister] or a decision of a court under section 202 [appeal to court].

(2) A corporation may, before the expiration of the period referred to in subsection (1) (a) (i) for a taxation year, file with the commissioner a waiver for the taxation year.

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

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

(5) If a notice of determination under this Part reflecting the application of section 68.1 (2) [anti-avoidance rule] to a transaction has been sent to a person, any other person is entitled, within 180 days after the date of the sending of that notice, to request in writing that the commissioner determine the amount of any tax credit, or determine and impose an assessable amount, applying section 68.1 (2) with respect to the transaction.

(6) On receipt of a request by a person under subsection (5), the commissioner must consider the request and determine the amount of any tax credit or determine and impose an assessable amount, as the case may be, with respect to the person, despite the expiry of any time limit under this section, except that a determination may be made under this subsection only to the extent that it may be reasonably regarded as relating to a transaction referred to in subsection (5).

Rules relating to determinations

188   (1) Despite a prior determination, or if no determination has been made, a corporation continues to be liable for an amount owing to the government under this Part.

(2) In determining the amount of any tax credit, or in determining and imposing an assessable amount, as the case may be, the commissioner

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

(b) may make the determination or impose the assessable amount despite the supply of the application or other information or records by or on behalf of the corporation.

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

Notice of determination

189   (1) After determining the amount of any tax credit for a taxation year in respect of a corporation, the commissioner must send to the corporation a notice of determination that specifies the amount of the tax credit for the taxation year.

(2) After determining and imposing an assessable amount in respect of a corporation, the commissioner must send to the corporation a notice of determination that includes a statement of the assessable amount.

(3) Evidence that a notice of determination has been sent is proof, in the absence of evidence to the contrary, that any assessable amounts specified in the notice of determination are due and owing, and the onus of proving otherwise is on the corporation liable to pay those amounts.

Notice to commissioner of subsequent assessment

190   If a corporation is issued a notice of assessment that changes an amount relevant to the calculation of the corporation's tax credit under this Part, the corporation, within 90 days after the notice was issued or within a later period approved by the commissioner, must

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

(b) include with the notice any other information or records required by the commissioner.

Imposition of administrative penalty

191   The commissioner may determine and impose a penalty on a corporation that is liable to a penalty under section 192.

Administrative penalties

192   (1) In this section, "excess refund" means the amount by which the tax refund under this Part that would have been claimed by the corporation, if the tax refund had been calculated on the basis of the information provided in the application, return, report, notice or other record, exceeds the tax refund that the corporation is entitled to receive.

(2) A corporation that knowingly or under circumstances amounting to gross negligence in the carrying out of any duty or obligation imposed under this Part makes, or participates in, assents to or acquiesces in the making of, a statement or omission in an application, return, report, notice or other record supplied to the commissioner that results in an excess refund is liable to a penalty equal to 50% of the amount of the excess refund.

(3) A corporation that fails to file with the commissioner a notice in accordance with section 190 [notice to commissioner of subsequent assessment] is liable, in respect of each failure, to a penalty equal to the greater of

(a) $100, and

(b) $25 for each day after which the notice was required to be filed under that section, to a maximum of $2 500.

Waiver or cancellation of penalty

193   The commissioner may at any time waive or cancel all or part of any penalty otherwise payable by a corporation under this Part.

Interest payable to government under this Part

194   (1) In this section, "loss carryback" means

(a) a deduction of an amount under section 111 of the federal Act that relates to a subsequent taxation year, or

(b) a deduction of an amount referred to in section 99 (3) (c) [non-refundable tax credit available] of this Act.

(2) If an amount is deemed under section 198 [excess refund] to be an amount payable by a corporation, the corporation is liable to pay interest on the amount as follows:

(a) subject to paragraph (b) of this subsection, from the date the amount became payable under that section until the date of payment;

(b) if the amount arises from a loss carryback, from the date the corporation's tax payable under this Act for the taxation year is reassessed as a consequence of the loss carryback until the date of payment.

(3) A corporation must pay to the government interest on a penalty imposed under this Part as follows:

(a) in the case of a penalty under section 192 (2) [gross negligence], from the date on which the application, return, report, notice or other record was filed or supplied until the date of payment;

(b) in the case of any other penalty, from the date of the notice of determination that specifies the amount of the penalty imposed until the date of payment.

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

No interest if full payment within 30 days

195   Despite any other provision of this Part, if

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

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

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

Waiver or cancellation of interest

196   The commissioner may at any time waive or cancel all or part of any interest otherwise payable under this Part by a corporation.

Interest on tax refunds

197   (1) In this section, "interest date" means, in respect of a taxation year, the date that is the earlier of the following:

(a) the date that is 61 days after the date the corporation complies with section 183 (2) (a) and (b) [application for tax credit] for the taxation year;

(b) the date that is 31 days after the date the initial notice of determination for the taxation year is sent under section 189 (1) [notice of determination].

(2) If the Provincial minister has not paid to the corporation a tax refund for a taxation year by the interest date, the minister must pay, out of the consolidated revenue fund, interest on the unpaid amount, calculated at the prescribed rate and in the prescribed manner beginning on the interest date.

Excess refund

198   If it appears from an inspection, audit, examination or investigation or from other information available to the commissioner that an amount has been refunded to a corporation in excess of the amount to which the corporation was entitled as a refund under this Part, the excess is deemed to be an amount that became payable by the corporation to the government on the day on which the amount was refunded.

Liability for amounts owing to government

199   A corporation is liable to pay to the government the following:

(a) the amount by which the tax refund under this Part that was paid to or on behalf of the corporation or set-off under the Financial Administration Act exceeds the tax refund that the corporation is entitled to receive;

(b) the amount of any penalties imposed on the corporation under section 191 [imposition of administrative penalty];

(c) the amount of any interest payable by the corporation to the government under this Part.

Collection of amounts owing to government

200   Part 5 [Recovery of Amounts Owing] of the Employer Health Tax Act applies for the purpose of collecting an amount that is owing to the government under this Part.

Appeal to Provincial minister

201   (1) A corporation may appeal the following to the Provincial minister:

(a) a determination of a tax credit under section 184;

(b) an imposition of a penalty under section 191;

(c) a determination under section 84 (13) of the Employer Health Tax Act as that section applies for the purposes of this Part.

(2) An appeal under subsection (1)

(a) must be made within 90 days after the date on the notice of determination in respect of the matter being appealed, and

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

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

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

(a) confirm, reverse or vary the commissioner's decision or determination, and

(b) notify the appellant in writing of the minister's decision.

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

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

Appeal to court

202   (1) A decision of the Provincial minister under section 201 (4) may be appealed to the Supreme Court by way of a petition proceeding.

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

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

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

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

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

(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 commissioner for reconsideration.

(8) An appeal lies from a decision of the court to the Court of Appeal with leave of a justice of the Court of Appeal.

Irregularities

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

Collection of amounts owing not affected by pending appeal

204   Neither the giving of a notice of appeal by a person nor a delay in the hearing of an appeal

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

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

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

If decision set aside or amount reduced on appeal

205   If the commissioner's or Provincial minister's decision is set aside, or an amount determined under this Part or owing to the government under this Part is reduced or varied on appeal, the Provincial minister must refund any excess amount paid to the appellant from the consolidated revenue fund.

Division 5 — General

Administration

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

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

Powers of audit

207   Without limiting any provision of this Act or the federal Act, for the purpose of determining an amount under this Part, the commissioner has powers equivalent to the federal minister under sections 231 to 231.5, 231.7 and 233 (1) of the federal Act, and for that purpose those sections apply.

Delegation of powers

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

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

Collection and sharing of information

209   Without limiting any provision of this or any other enactment, the Provincial minister, the minister charged with the administration of the Petroleum and Natural Gas Act and the Oil and Gas Commission may

(a) collect any information that is relevant to the administration or enforcement of this Part, and

(b) share with each other, in accordance with an information-sharing agreement entered into in accordance with section 65 [information-sharing agreements], any information that is relevant to the administration or enforcement of this Part.

Application of other provisions

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

(a) section 33 [payments by corporation];

(b) section 34 [returns, payments and interest];

(c) section 35 [refund for tax credits];

(d) section 36 [amount on which instalment calculated];

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

(f) section 39 [penalty for late or deficient instalments];

(g) section 39.1 [misrepresentation of tax matter by third party];

(h) section 40 [refunds].

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

(a) section 1 (8.1) [interpretation in respect of collection agreements];

(b) section 29 [returns of income and assessments of tax];

(c) section 30 [reassessment and amended return];

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

(e) section 41 [objections to assessments and extension of time];

(f) section 42 [appeal by taxpayer];

(g) section 43 [reply];

(h) section 44 [procedure];

(i) section 45 [irregularities, extension of time and private hearings];

(j) section 46 [court practice];

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

(l) section 49 [debts to Her Majesty];

(m) section 50 [certificates];

(n) section 51 [warrant];

(o) section 52 [acquisition of debtor's property];

(p) section 53 [payment of money seized from tax debtor];

(q) section 54 [seizure of goods];

(r) section 55 [taxpayer leaving Canada or defaulting];

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

(t) section 61 [offence and penalty];

(u) section 62 [further offences];

(v) section 68 (3) [procedure and evidence];

(w) section 70 [payments on account].

Volume, heating value and sampling of natural gas

211   (1) For the purposes of this Part, a measurement of a volume of natural gas is to be expressed per 1 000 m3 at standard conditions of 101.325 kPa and 15 C and rounded to one decimal place.

(2) For the purposes of this Part, the heating value of natural gas is to be expressed in gigajoules per 1 000 m3.

(3) For the purposes of this Part, the measuring and taking of samples of natural gas is to be made in accordance with the regulations made under the Oil and Gas Activities Act.

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

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

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

Power to make regulations

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

(a) prescribing an amount of LNG for the purposes of paragraph (b) of the definition of "major LNG facility" in section 172 [definitions];

(b) prescribing activities for the purposes of paragraph (b) (v) of the definition of "qualifying corporation" in section 172;

(c) prescribing a type or class of corporation for the purposes of the definition of "qualifying corporation" in section 172;

(d) prescribing a percentage for the purposes of section 173 (4) [natural gas tax credit];

(e) designating a meter station in respect of a major LNG facility for the purposes of paragraph (b) of the definition of "feedstock pipeline inlet" in section 177 [definitions];

(f) prescribing a reference point for the purposes of the definition of "reference point" in section 177;

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

(h) defining a word or expression used but not defined in this Part.

(2) For the purposes of section 180 [notional cost of natural gas notionally acquired in month], the Lieutenant Governor in Council may make regulations as follows:

(a) respecting the determination of a pipeline fuel and losses adjustment in respect of a major LNG facility;

(b) respecting the determination of the reference price for a month in respect of natural gas acquired in the month at the reference point, including, without limitation, price indices and other matters the minister must consider in determining the reference price.

(3) In making regulations under this Part, 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) define classes of corporations or major LNG facilities and make different regulations for different classes of corporations or major LNG facilities.

(4) A regulation made under this Part may be made retroactive to January 1, 2020 or a later date, and if made retroactive is deemed to have come into force on the specified date.

Part 14 — Emergency Benefit for Workers

Definitions

214   In this Part:

"commissioner" means the Commissioner of Income Tax;

"determination" includes a redetermination;

"emergency benefit" means the emergency benefit for workers under this Part for the 2019 taxation year.

Eligibility for emergency benefit

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

(a) either of the following applies:

(i) the individual

(A) is entitled to receive an income support payment under the Canada Emergency Response Benefit Act, and

(B) has not repaid or is not required to repay all of the income support payments received under the Canada Emergency Response Benefit Act;

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

(A) that Act read in accordance with subsection (6) of this section, and

(B) the individual had made an application in accordance with that Act;

(b) the individual was a resident of British Columbia at the end of March 15, 2020;

(c) the individual is not receiving assistance under a prescribed assistance program during a prescribed period, except assistance received for a prescribed reason;

(d) the individual has applied for the emergency benefit in accordance with section 216 of this Act.

(2) Despite subsection (1), an individual is not eligible for an emergency benefit if the individual is confined to a prison or similar institution for a period of at least 90 days that includes March 15, 2020.

(3) For the purposes of this Part, an individual must file before January 1, 2021 a return of income under section 29 for the 2019 taxation year.

(4) If an individual has been paid an amount under this Part and the individual has not filed a return of income in accordance with subsection (3), the commissioner may determine that the individual is not eligible for the emergency benefit.

(5) Despite subsection (1), if a notice of determination is sent to an individual under section 217 (3) after a determination under subsection (4) of this section, the individual is deemed never to have been eligible for the emergency benefit.

(6) For the purposes of subsection (1) (a) (ii),

(a) the reference to "March 15, 2020" in section 5 (1) of the Canada Emergency Response Benefit Act must be read as a reference to "March 1, 2020",

(b) the reference to "at least 14 consecutive days within the four-week period in respect of which they apply for the payment" in section 6 (1) (a) of the Canada Emergency Response Benefit Act must be read as a reference to "at least 14 consecutive days that begin on or after March 1, 2020 and before March 15, 2020", and

(c) the Canada Emergency Response Benefit Act must be read without reference to section 6 (1) (b) (ii) of that Act.

Application for tax credit

216   (1) An individual who wishes to claim an emergency benefit must file with the commissioner an application for the emergency benefit

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

(3) In addition to the application, the individual must file with the application, or within a later period approved by the commissioner, any other information or records required by the commissioner.

(4) An application under this section must be filed on or before December 2, 2020.

Determination of tax credit

217   (1) The commissioner must examine an application and other information or records filed under section 216 and determine whether the individual is eligible for an emergency benefit.

(2) If the commissioner determines that an individual is eligible for an emergency benefit, the commissioner may send to the individual a notice of determination.

(3) If the commissioner determines that an individual is not eligible for an emergency benefit, the commissioner must send to the individual a notice of determination.

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

(5) In determining whether an individual is eligible for an emergency benefit, the commissioner is not bound by an application or other information or records filed by or on behalf of the individual.

Payment of emergency benefit

218   (1) An overpayment of $1 000 on account of an individual's liability under this Act for the 2019 taxation year is deemed to have arisen if the individual has claimed and is eligible for an emergency benefit.

(2) If an overpayment is deemed to have arisen under subsection (1), the Provincial minister must pay, out of the consolidated revenue fund, the amount of the overpayment after the commissioner determines the individual is eligible for the emergency benefit.

(3) The amount payable under subsection (2) must be paid by electronic funds transfer.

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

Notice to commissioner if individual no longer eligible for emergency benefit

219   (1) If an individual receives an amount paid under section 218 and the individual no longer meets all of the eligibility requirements in section 215 (1), the individual must file a notice with the commissioner on or before the later of

(a) August 31, 2020, and

(b) the date that is 30 days after the earliest of the following, as applicable:

(i) the date the individual repaid all of the income support payments the individual received under the Canada Emergency Response Benefit Act;

(ii) the date the individual received notice that the Minister of Employment and Social Development for Canada has determined that the individual is not entitled to the income support payments the individual received under the Canada Emergency Response Benefit Act;

(iii) the date the individual no longer meets the eligibility requirement in section 215 (1) (a) (ii) of this Act;

(iv) the date the individual received assistance referred to in section 215 (1) (c) of this Act.

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

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

Determination period

220   The commissioner may determine eligibility for an emergency benefit, or determine and impose any penalty payable under this Part,

(a) subject to paragraph (b), on or before December 2, 2023, or

(b) at any time,

(i) if any individual has made any misrepresentation or committed any fraud in filing an individual's application or in filing information or records under this Part,

(ii) to give effect to a waiver or cancellation of a penalty under section 224 [waiver or cancellation of penalty], or

(iii) to give effect to a decision of the Provincial minister under section 228 [appeal to Provincial minister] or a decision of a court under section 229 [appeal to court].

Overpayment cannot be attached or assigned

221   An overpayment payable under section 218

(a) cannot be charged or given as security,

(b) cannot be assigned except under a prescribed Act,

(c) cannot be garnished or attached,

(d) is exempt from execution or seizure, and

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

Imposition of administrative penalty

222   (1) The commissioner may determine and impose a penalty on an individual who is liable to a penalty under section 223.

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

Administrative penalties

223   (1) An individual who knowingly or under circumstances amounting to gross negligence in the carrying out of any duty or obligation imposed under this Part makes, or participates in, assents to or acquiesces in the making of, a statement or omission in an application, return, report, notice or other record filed with the commissioner that results in any individual receiving a payment under this Part for which the individual is not eligible, or that would have resulted in any individual receiving a payment under this Part for which the individual is not eligible if eligibility had been determined on the basis of the information provided in the application, return, report, notice or other record, is liable to a penalty of $3 000.

(2) An individual who fails to file with the commissioner a notice in accordance with section 219 is liable, in respect of each failure, to a penalty of $10 for each day after which the notice was required to be filed under that section, to a maximum of $250.

Waiver or cancellation of penalty

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

Interest payable to government under this Part

225   (1) If an amount is deemed under section 231 [individual to repay amount] to be an amount payable by an individual, the individual is liable to pay interest on the amount from the later of

(a) the date the amount to be repaid was paid under this Part to the individual, and

(b) October 1, 2020

until the date of payment.

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

(a) in the case of a penalty under section 223 (1) [gross negligence], from the later of

(i) the date on which the application, return, report, notice or other record was filed, and

(ii) October 1, 2020

until the date of payment;

(b) in the case of a penalty under section 223 (2) [failure to file notice], from the later of

(i) the date of the notice of determination that specifies the amount of the penalty imposed, and

(ii) October 1, 2020

until the date of payment.

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

No interest if full payment within 30 days

226   Despite any other provision of this Part, if

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

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

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

Waiver or cancellation of interest

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

Appeal to Provincial minister

228   (1) An individual may appeal to the Provincial minister an imposition of a penalty under section 222.

(2) An appeal under subsection (1)

(a) must be made within 90 days after the date on the notice of determination in respect of the matter being appealed, and

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

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

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

(a) confirm, reverse or vary the commissioner's decision or determination, and

(b) notify the appellant in writing of the minister's decision.

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

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

Appeal to court

229   (1) A decision of the Provincial minister under section 228 (4) in respect of an appeal to the Provincial minister under section 228 (1) may be appealed to the Supreme Court by way of a petition proceeding.

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

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

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

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

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

(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 commissioner for reconsideration.

(8) An appeal lies from a decision of the court to the Court of Appeal with leave of a justice of the Court of Appeal.

Irregularities

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

Individual to repay amount

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

Liability for amounts owing to government

232   An individual is liable to pay to the government the following:

(a) the amount that was paid to the individual under this Part if the individual is not entitled to receive that amount;

(b) the amount of any penalties imposed on the individual under section 222 [imposition of administrative penalty];

(c) the amount of any interest payable by the individual to the government under this Part.

Collection of amounts owing to government

233   Part 5 [Recovery of Amounts Owing] of the Employer Health Tax Act applies for the purpose of collecting an amount that is owing to the government under this Part.

Powers of audit

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

Delegation of powers

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

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

Application of other provisions

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

(a) section 31 [instalment payments: farmers and fishers];

(b) section 32 [instalment payments: other individuals];

(c) section 34 [returns, payments and interest];

(d) section 35 [refund for tax credits];

(e) section 36 [amount on which instalment calculated];

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

(g) section 39 [penalty for late or deficient instalments];

(h) section 39.1 [misrepresentation of tax matter by third party];

(i) section 40 [refunds].

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

(a) section 1 (8.1) [interpretation];

(b) section 29 [returns of income and assessments of tax];

(c) section 30 [reassessment and amended return];

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

(e) section 41 [objections to assessments and extension of time];

(f) section 42 [appeal by taxpayer];

(g) section 43 [reply];

(h) section 44 [procedure];

(i) section 45 [irregularities, extension of time and private hearings];

(j) section 46 [court practice];

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

(l) section 49 [debts to Her Majesty];

(m) section 50 [certificates];

(n) section 51 [warrant];

(o) section 52 [acquisition of debtor's property];

(p) section 53 [payment of money seized from tax debtor];

(q) section 54 [seizure of goods];

(r) section 55 [taxpayer leaving Canada or defaulting];

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

(t) section 61 [offence and penalty];

(u) section 62 [further offences];

(v) section 70 [payments on account].

Administration

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

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

Power to make regulations

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

(a) prescribing assistance programs, periods and reasons for the purposes of section 215 (1) (c);

(b) prescribing Acts for the purposes of section 221 (b);

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

(d) defining a word or expression used but not defined in this Part.

(2) In making regulations under subsection (1) (a), the Lieutenant Governor in Council may prescribe different periods for different prescribed assistance programs.

(3) A regulation made under this section may be made retroactive to May 1, 2020 or a later date, and if made retroactive is deemed to have come into force on the specified date.

Repeal by regulation

239   After December 31, 2023, the Lieutenant Governor in Council may repeal this Part by regulation.