This archived statute consolidation is current to September 22, 2011 and includes changes enacted and in force by that date. For the most current information, click here.
This Act has "Not in Force" sections. See the Table of Legislative Changes.

Social Service Tax Act

[RSBC 1996] CHAPTER 431

Contents
Part 1 — General
  Definitions and interpretation
  Proof of residence in British Columbia
  Deputy commissioners
  3.1  Demand for information
  Confidentiality
  4.1  Valuation by commissioner
  4.2  Calculation of tax if price reduced
Part 1.2 — Transitional Rules
  4.8  Definitions
  4.81  When consideration becomes due
  4.82  When purchase price or lease price becomes due
  4.83  Deposits
  4.84  Determinations by commissioner
  4.85  Time when tax must be paid
Part 2 — Imposition of Tax
  Division 1 — Tax in relation to Purchase and Use
  Provincial sales tax
  5.1  Transition — application of section 5
  Rates of tax
  Liquor sold under special occasion licence
  7.1  Transition — application of section 7
  8-9  Repealed
  10  Tax if trade-in allowed on purchase
  10.1  Transition — application of section 10
  11  Tax if property brought into B.C. for use
  12  Calculation of tax if use in British Columbia temporary
  13  Calculation of tax if property is conveyance used interjurisdictionally
  14  When tax is to be paid on property coming into British Columbia
  15  Tax if conveyance purchased in B.C. for interjurisdictional use
  15.1  Transition — application of section 15
  16  Tax if property brought into British Columbia by non-residents
  17  Repealed
  17.1  Conversion to litres of propane
  18  How tax is to be calculated
  19  Effect of depreciation on purchase price valuation
  Division 2 — Tax in relation to Leases
  20  Tax on leases in British Columbia
  20.01  Transition — application of section 20
  20.1  Tax on motor vehicle leased outside British Columbia
  20.2  Tax on property occasionally supplied with operator
  20.3  Transition — application of section 20.2
  21  Tax if leased property brought into British Columbia
  21.01  Transition — application of section 21
  21.1  Repealed
  22  Tax if sale and lease-back of conveyance
  22.01  Transition — application of section 22
  22.1  Repealed
  23  Tax must be calculated separately for each rental period
  24  When tax must be paid
  25  Tax if balance of lease price becomes due
  26  Repealed
  27  Repealed
  Division 3 — Tax in relation to Multijurisdictional Vehicles
  28  Definitions
  29  Tax if multijurisdictional vehicle licensed
  30-31  Repealed
  32  Tax if fleet licensing changed
  33  Repealed
  33.1  Refund or credit for trade-in vehicles
  33.2  Refund for replacement vehicles
  33.3  Refund for short term rental vehicles
  34  Liability of other persons
  35  How tax is to be calculated
  Division 4 — Services Related to Purchase
  36  Tax if contract for property conversion related to purchase
  37  Tax if contract for modification of purchased property
  37.1  Transition — application of sections 36 and 37
  38  Tax exempt property
  39  Application of other provisions of Act
  Division 5 — Taxable Services
  40  Tax on the provision of taxable service in British Columbia
  40.1  Transition — application of section 40
  41  Tax if service provided to British Columbia resident
  41.1  Transition — application of section 41
  42  Exceptions from tax
  43  Repealed
  44  How tax is to be calculated
  45  Application of other provisions of Act
  Division 6 — Legal Services
  46  Tax if legal services provided in British Columbia
  47  Tax if legal services provided to British Columbia resident
  47.1  Transition — application of sections 46 and 47
  48  Exception for legal aid services
  49  When tax must be paid
  50  Liability of other persons
  51  General matters
  52  Application of other provisions of Act
  Division 7 — Telecommunication Services
  53  Tax on provision of telecommunication services
  54  Tax on provision of dedicated telecommunication services
  54.1  Transition — application of sections 53 and 54
  55  Calculation if telecommunication only partly through dedicated system
  56  Exceptions from tax
  57  When tax must be paid
  58  Repealed
  59  How tax is to be calculated
  60  Application of other provisions of Act
  Division 8 — Tax in relation to Parking Rights
  61  Parking tax
  61.1  Transition — parking tax
  62  When tax must be paid
  63  Repealed
  64  How tax is to be calculated
  65  Application of other provisions of Act
  65.1  Tax collection
  Division 9 — Environmental Levies
  66-68  Repealed
  68.01  Innovative Clean Energy Fund levy
  Division 10
  68.1  Repealed
  Division 11 — Improvements to Real Property
  68.2  Tax on contracts for improvements to real property
  68.21  Tax on tangible personal property to be used to improve real property
  68.22  Transition — application of sections 68.2 and 68.21
  68.3  Exemption
  68.4  Application of other provisions of Act
Part 3 — Exemptions
  69  Exemption for minimal sale
  69.1  Sales of taxable and non-taxable property and services
  70  Exemptions in relation to food, clothing and shelter
  71  Exemptions in relation to health and safety
  72  Exemptions in relation to publications and school supplies
  73  Exemptions in relation to agriculture and fisheries
  74  Exemptions in relation to fuel, energy and conservation
  75  Exemptions in relation to transportation
  76  Exemptions in relation to industry and commerce
  77  Other general property and services exemptions
  78  Exemptions for purchases or leases intended for resale or lease
  79  Other exemptions
  79.1  Limit on exemptions
Part 4 — Refunds
  80  Limits on refunds
  80.1  Limit on refunds — parking tax
  81  Application for refund
  82  Refund where no obligation to pay or collect
  82.1  Refund of taxes in accordance with Nisga'a Nation Taxation Agreement
  82.11  Treaty first nation tax refunds
  82.2  Refunds when joint and several liability
  83  Contracts to improve real property
  84  Purchases returned to vendor
  85  Claiming races
  86  Conveyances used interjurisdictionally
  87  Property shipped out of British Columbia
  88  Farm use property
  88.1  School use property purchased by parents' advisory councils
  88.2  Medical equipment purchased by charitable organizations
  89  Repealed
  90  Deduction for bad debts
  90.1  Repealed
  90.2  Repealed
  90.3  Hybrid electric buses
  90.4  Fuel-efficient vehicles
  90.5  Refunds authorized or required under regulations
Part 5 — Collection of Taxes
  Division 1 — Local Collectors
  91  Tax not to be absorbed by seller or lessor
  92  Repealed
  92.1  Repealed
  92.2  Persons who are not required to be registered
  93  Seller or lessor deemed to be agent of minister
  93.1  Tax payment agreements
  94  Collector deemed to act under Financial Administration Act
  95  Allowance for collection of tax
  96  Time when tax is to be collected and remitted
  96.1  Transition — time when tax is to be collected
  97  Duty to make returns of tax collections
  98  Duty to maintain records
  99  Commissioner's certificate required for sales in bulk
  100  Sale and lease-back documentation
  101  Purchaser, user or lessee liable for tax
  102  Tax collected deemed to be held in trust for government
  102.1  Director's liability
  102.2  Deemed director
  103  Lien against property if taxes not collected, remitted or paid
  104  Responsibility of person having control of collector's property
  105  Notice to taxpayer before taking proceedings
  106  Recovery of taxes due or collected by court action
  107  Commissioner's certificate equivalent to court order
  108  Attachment of amounts to be paid to person liable for tax
  109  Limitation period
  110  Repealed
  111  Exercise of powers for recovery of taxes or collections
  112  Repealed
  Division 2 — Collection Agents
  112.1  Definitions
  112.2  Repealed
  112.3  Repealed
  112.4  Repealed
  112.5  Tax payable even though exemption claimed
  112.6  Agreement with federal government
  112.7  Immunity of collection agent
Part 6 — Inspections, Audits and Assessments
  113  Inspection and audit powers
  114  Search warrant may be issued if tax not paid
  115  Assessments
  115.1  Assessment against a director
  116  Determination of tax collected
  116.1  Assessments, estimates and penalties
  117  Penalty and interest
Part 7 — Appeals
  118  Appeal to minister
  119  Appeal to court
  120  Collection of taxes unaffected by pending appeals
Part 8 — Offences
  121  General offence rule of Offence Act does not apply
  122  Liability of corporation officers
  123  Offences
  124  Onus of proof
  125  Prosecution evidence
  126  Information or complaint may relate to more than one offence
  127  Limitation period for laying charge
Part 9 — Regulations
  128  General regulation making authority
  129  Regulations exempting specified persons
  130  Regulations in relation to vehicles and other conveyances
  131  Regulations in relation to taxable services
  132  Regulations in relation to legal services
  133  Regulations in relation to telecommunications
  134  Regulations in relation to parking rights
  135  Repealed
  135.1  Regulations in relation to Innovative Clean Energy Fund levies
  135.2  Regulations in relation to refunds
  136  Regulations in relation to claims of solicitor client privilege
  137  Regulations specifying tax for coin-operated purchases
  138  Other regulations
  139  Regulations in relation to exemptions
  140  Regulations in relation to payment, collection and remittance of tax
  141  Regulations in relation to continuous supplies
  142  Regulations in relation to progress payments
  143  Regulations in relation to combined supplies and software
  144  Regulations in relation to price reductions
  145  Regulations in relation to return of services
  146  Regulations applying provisions of Excise Tax Act (Canada)
  147  Regulations — transition

Part 1 — General

Definitions and interpretation

1  (1) In this Act:

"12 month period", in relation to tangible personal property, means for the purposes of section 12 (2) and 14 (1) (a)

(a) the period beginning on the date the property is first brought or sent into, or is delivered in, British Columbia during any year and ending on the day before the first anniversary of that date, and

(b) if the property is in British Columbia for a continuous period that is longer than the period referred to in paragraph (a), the period beginning on the day after the immediately previous 12 month period and ending on the day before the first anniversary of that date;

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

"assessment" includes reassessment;

"catalyst" means a substance that produces or modifies a chemical reaction and that, at the end of the reaction, is unchanged;

"collector" means a person who has collected taxes under this Act;

"commissioner" means the person appointed by the Lieutenant Governor in Council to administer this Act;

"conveyance" does not include a vehicle;

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

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

"direct agent" means a substance that produces or modifies a chemical reaction and that is consumed in the chemical reaction to the point of destruction or dissipation or uselessness for any other purpose;

"entry date", in relation to any tangible personal property, means the date on which the person liable to pay the tax on the property first brings or sends the property into, or receives delivery of the property in, British Columbia;

"fair market value" means

(a) in relation to tangible personal property, other than rights or services deemed to be tangible personal property under section 39, 45, 52, 60 or 65, the price at which the legal and beneficial interest in the tangible personal property would, if unencumbered, be conveyed by a willing seller acting in good faith to a willing buyer acting in good faith in an arm's length retail sale in the open market, and

(b) in relation to a parking right or service, including a service under Division 4, 5, 6 or 7 of Part 2, the price at which the right or service would be provided by a willing seller acting in good faith to a willing buyer acting in good faith in an arm's length retail sale in the open market,

and must be determined in a manner that includes any charges, costs or expenses referred to in paragraph (a) (i) or (ii) of the definition of "purchase price", and for the purposes of section 11 (4.1), must be determined in a manner that also includes any costs or expenses referred to in paragraph (a) (ii) of the definition of "purchase price" that were incurred by the person who provided the gift;

"fixture" means machinery, equipment or apparatus that is

(a) a fixture at common law, and

(b) used directly in the manufacture, production, processing, storage, handling, packaging, display, transportation, transmission or distribution of tangible personal property or in the provision of a service;

"interjurisdictional commercial purposes" means, in relation to a vehicle, use of the vehicle in British Columbia while the vehicle is engaged in interprovincial or international trade for the commercial carriage of passengers or goods;

"lease" means an agreement under which a person is given a right to use tangible personal property, but does not include

(a) a lease of tangible personal property if, as part of the agreement between the parties, the person supplying the tangible personal property supplies a person to operate it, or

(b) the leasing of furnishings if

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

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

"lease price" means the total consideration paid by the lessee to the person granting a lease for each rental period under the lease for the right to use the leased property, and includes

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

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

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

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

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

(f) in respect of a transaction that is in part a lease of tangible personal property under which a person (in this paragraph referred to as "the exhibitor") is given the right or authority to exhibit a motion picture to others, the total consideration that

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

(ii)  is not otherwise included in this definition;

"legal services" means

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

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

(c) legally related services prescribed as legal services,

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

"lessee" means a person who leases tangible personal property

(a) for the person's own use in British Columbia,

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

(c) on behalf of, or as the agent for, a principal who desires to lease the property for use in British Columbia by that principal or another person at the principal's expense;

"lessor" means a person who, in the ordinary course of the person's business in British Columbia, leases tangible personal property to a lessee in British Columbia;

"liquor" means liquor as defined in the Liquor Distribution Act;

"magazines" means printed and bound publications in a magazine format

(a) that are issued at regular intervals each year by professional bodies, trade or industrial organizations, commercial publishing firms or non-profit corporations, and

(b) where at least 10% of the content, determined in accordance with the regulations and in accordance with section 72 (2), is composed of technical, literary, editorial or pictorial content, other than advertising and promotional content,

but does not include a prescribed type of publication;

"manufactured home" means

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

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

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

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

if the unit or each module is in all essential features completely constructed prior to delivery from the factory;

"mineral" means metal ore and every natural substance that can be mined and that

(a) occurs in fragments or particles lying on, above or adjacent to the bedrock source from which it is derived, and is commonly described as talus,

(b) is in the place or position in which it was originally formed or deposited, or

(c) is loose, fragmentary or broken rock or float that, by decomposition or erosion of rock, is found in wash, loose earth, gravel or sand,

and includes tailings, building and construction stone, marble, shale, clay, sand and gravel, but does not include petroleum, natural gas, volcanic ash, earth, soil, marl or peat;

"motor vehicle" means motor vehicle as defined in the Motor Vehicle Act;

"multi-jurisdictional vehicle" means a vehicle in respect of which tax is payable under section 29 (1);

"newspapers" means printed and unbound publications in a newspaper format

(a) that are published at regular intervals each year, and

(b) where at least 20% of the content, determined in accordance with the regulations and in accordance with section 72 (2), is composed of editorials, news and articles of local or common interest, other than advertising and promotional content,

but does not include a prescribed type of publication or advertising material known as flyers, or advertising circulars, even if the flyers or advertising circulars are sold or given away as part of the newspaper;

"park", in respect of a motor vehicle, does not include storage if the motor vehicle is stored for a period of more than 28 consecutive days;

"parking period" means, in respect of a parking right, the period for which the parking right is purchased;

"parking right" means the right to park a motor vehicle at a parking site for any period of time;

"parking site" means any location in British Columbia at which a motor vehicle may, for a price or other consideration, be parked for any period of time;

"passenger vehicle" means a motor vehicle designed primarily as a means of transport for individuals and includes vehicles prescribed as passenger vehicles;

"periodicals" means printed and bound publications in a periodical format

(a) that are issued at regular intervals each year by professional bodies, trade or industrial organizations, commercial publishing firms or non-profit corporations, and

(b) where at least 10% of the content, determined in accordance with the regulations, and in accordance with section 72 (2), is composed of technical, literary, editorial or pictorial content, other than advertising and promotional content,

but does not include a prescribed type of publication;

"person" includes the government and a municipality;

"promotional distribution" means the provision by a person to another person of tangible personal property that is provided for one or more of the following purposes:

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

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

(c) a purpose, function or use prescribed by the Lieutenant Governor in Council as a promotional distribution;

"promotional distributor" means a person who provides, by way of promotional distribution to another person, tangible personal property the purchase price of which

(a) exceeds the amount of the payment specifically made for the tangible personal property by the person to whom it is provided, or

(b) is not specifically charged to and required to be paid by the person to whom that tangible personal property is provided;

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

"purchase price" means the following:

(a) in relation to tangible personal property, means a price in money, and also the value of services rendered, the actual value of the tangible personal property exchanged, acquired or repossessed, and other consideration accepted by the seller or person from whom the property passes as price or on account of the price of the tangible personal property covered by the sale, and includes

(i)  any charges for

(A)  transportation of the tangible personal property sold, or

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

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

(ii)  if the tangible personal property is purchased, manufactured, processed or otherwise acquired outside British Columbia and subsequently brought or sent into or received in British Columbia for use or consumption in British Columbia, the costs and expenses

(A)  of and to the user for materials, labour and other manufacturing and processing costs and expenses, and

(B)  for service, customs, excise, transportation and other costs and expenses

incurred by the user before the use of the tangible personal property in British Columbia,

(iii)  in relation to the purchase of ready-mixed concrete that is to be delivered by or on behalf of the vendor to the place where the purchaser intends to use it, the total consideration that is payable by the purchaser to have the ready-mixed concrete delivered to that place, and

(iv)  any charge, including a royalty or licence fee, relating to the use of the tangible personal property, or to the use of knowledge required to use the tangible personal property, whether incurred before or after the time that title to the tangible personal property covered by the sale passes under that sale;

(a.1) in relation to a motor vehicle, means the purchase price under paragraph (a) less any portion of that price that the seller accepts from the manufacturer of the motor vehicle as price or on account of the price of the motor vehicle covered by the sale;

(b) in relation to legal services, means

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

(ii)  the prescribed disbursements

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

(c) in relation to a parking right, means a price in money, and also the value of services rendered, the actual value of the tangible personal property exchanged, acquired or repossessed, and other consideration accepted by a seller of a parking right as price or on account of the price of the parking right;

(d) in relation to a taxable service, means a price in money, and also the value of services rendered, the actual value of the tangible personal property exchanged, acquired or repossessed, and other consideration accepted by a seller of a taxable service as price or on account of the price of the taxable service;

(e) in relation to a telecommunication service, means the total consideration paid by the purchaser for the provision of the service and for each period in respect of which an invoice for or in relation to the service is issued, and includes

(i)  sign-up charges,

(ii)  access charges,

(iii)  airtime charges,

(iv)  usage charges,

(v)  service charges, and

(vi)  the following charges for telecommunications provided as part of the service:

(A)  in the case of a dedicated telecommunication service, all such charges;

(B)  in the case of any other telecommunication service, all such charges in respect of each telecommunication that meets at least 2 of the following criteria:

(I) the telecommunication originates in British Columbia;

(II) the telecommunication is received in British Columbia;

(III) the charge for the telecommunication is invoiced with respect to a transmitter that is ordinarily situated in British Columbia;

(f) in relation to prescribed tangible personal property that is sold for a single price with tangible personal property or services that, under this Act, are not subject to tax or are exempt from tax, means the total consideration that is accepted by the seller for all the tangible personal property or services sold for the single price;

(f.1) in relation to tangible personal property, other than tangible personal property that is prescribed for the purposes of paragraph (f), that is subject to tax and is sold for a single price with tangible personal property or a service that, under this Act, is not subject to tax or is exempt from tax, means,

(i)  if the fair market value of the taxable tangible personal property is more than 90% of the single price and the single price is less than the prescribed amount, the total consideration that is accepted by the seller for all the tangible personal property or services sold for the single price, or

(ii)  in any other case, the fair market value of the taxable tangible personal property included in the single price;

(g) in relation to fuel oil that is blended with biodiesel fuel, means the amount calculated in accordance with the following formula:

where    
C  =  the total consideration paid by the purchaser for the blend of fuel oil and biodiesel fuel,
F  =  the volume of fuel oil purchased, and
B  =  the total volume of the blend of fuel oil and biodiesel fuel purchased;

(h) for the purposes of section 68.2 (3) in relation to a contract for the supply and installation of improvements to real property, the greater of the following:

(i)  the amount paid by the contractor for the tangible personal property referred to in section 68.2 (1) that would have been the purchase price under paragraph (a) of this definition had section 68.2 (2) not applied in relation to that contract;

(ii)  that part of the total consideration accepted by the contractor under the contract that is expressly attributed to the value of the tangible personal property referred to in section 68.2 (1);

"purchaser" means

(a) a person who acquires tangible personal property at a sale in British Columbia

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

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

(iii)  on behalf of or as agent for a principal, if the property is for consumption or use by the principal or by another person at the expense of that principal,

(b) a promotional distributor that does not come within paragraph (a), to the extent that the purchase price of the tangible personal property provided by way of promotional distribution exceeds the amount of the payment specifically made for it by the person to whom that property is provided,

(c) a person who agrees to pay or is otherwise obliged to pay consideration for legal services

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

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

(iii)  provided to the person on behalf of or as agent for a principal, if the legal services are for the benefit or use of the principal or another person at the expense of that principal,

(d) a person who agrees to pay or is otherwise obliged to pay consideration for a parking right

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

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

(iii)  provided to the person on behalf of or as agent for a principal, if the parking right is for the benefit or use of the principal or another person at the expense of that principal,

(e) a person who agrees to pay or is otherwise obliged to pay consideration for a taxable service

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

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

(iii)  provided to the person on behalf of or as agent for a principal, if the taxable service is for the benefit or use of the principal or another person at the expense of that principal, and

(f) a person who agrees to pay or is otherwise obliged to pay consideration for a telecommunication service

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

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

(iii)  provided to the person on behalf of or as agent for a principal, if the telecommunication service is for the benefit or use of the principal or another person at the expense of that principal;

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

"retail sale" means a sale to a purchaser for purposes of consumption or use and not for resale;

"sale" includes

(a) a conditional sale, a transfer of title or possession, conditional or otherwise, a sale on credit or for which the price is payable by installments, an exchange, barter or any other contract by which, at a price or other consideration, a person delivers tangible personal property to another person,

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

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

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

(c) the provision, by way of promotional distribution, of tangible personal property,

but does not include

(d) the provision of tangible personal property that, in accordance with the regulations, is merely incidental to a contract for the provision of services that are not subject to tax under this Act, and

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

"sale in bulk" means

(a) a sale of tangible personal property by a vendor out of the usual course of the vendor's business,

(b) a sale of substantially the entire stock of tangible personal property of a vendor, or

(c) a sale of an interest in the business of a vendor;

"short term rental vehicle" means a vehicle used, during a vehicle licence year, as prescribed by regulation;

"software" means packaged or prewritten software programs, or the right to use such programs, whether the software is delivered by electronic, disk, tape or other means, but does not include

(a) [Repealed 2006-2-21.]

(b) software that is modified in a manner that involves changes to the source code, and that is modified solely to meet the requirements of a specific person if

(i)  the purchase price or lease price, as applicable, is for the software as modified, and

(ii)  that purchase price or lease price is greater than double what it would have been for the software in its unmodified form, or

(c) custom software, being

(i)  software programs developed solely to meet the requirements of a specific person, and

(ii)  modifications to software referred to in subparagraph (i) when performed for the person for whom the software was originally developed,

unless the software is a copy of software referred to in paragraph (b) or (c), or the right to use such software, that is sold or leased to someone other than the specific person for whom the software was originally modified or developed;

"South Coast British Columbia Transportation Authority" means the authority continued under section 2 (1) of the South Coast British Columbia Transportation Authority Act;

"South Coast British Columbia transportation service region" has the same meaning as "transportation service region" in the South Coast British Columbia Transportation Authority Act;

"substantially" means 90% or more;

"tangible personal property" means

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

(b) software,

(c) electricity,

(d) fixtures, other than prescribed types of fixtures, and

(e) heat;

"tax" includes

(a) all penalties and interest that are or may be added to tax under this Act, and

(b) in the definition of "collector" and in sections 4.85, 80, 81, 82 (1), 84, 91, 93 (1), (1.1), (2) and (4), 94, 95, 96 (7), 96.1, 99, 101 to 109, 111 to 117, 120, 123, 124, 125 and 128 to 138, except 137 (2), but not in any other provision of this Act, a levy under Division 9 of Part 2 and all penalties and interest that are or may be added to a levy under this Act;

"taxable service" means any service provided to install, assemble, dismantle, repair, adjust, restore, recondition, refinish or maintain tangible personal property, but does not include a service

(a) provided to install tangible personal property that will become real property on installation,

(b) provided to install, assemble, dismantle, repair, adjust, restore, recondition, refinish or maintain prescribed tangible personal property, or

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

"telecommunication" includes any transmission, emission or reception of signs, signals, writing, images, sound or intelligence of any nature by wire, fibre optic cable, radio, satellite or other electromagnetic or laser based system, but does not include any prescribed transmission, emission or reception or any prescribed class of transmission, emission or reception;

"telecommunication service" means the right, whether exercised or not, to send or receive one or more telecommunications by means of a transmitter that is ordinarily situated in British Columbia, and includes

(a) the sending or receiving of a telecommunication by means of a transmitter that is ordinarily situated in British Columbia, and

(b) a dedicated telecommunication service;

"trailer" means trailer as defined in the Motor Vehicle Act;

"transfer of possession" includes transactions held by the commissioner to be in place of a transfer of title, exchange or barter;

"transmitter" means a facility or instrument by which a purchaser of a telecommunication service may send or receive the telecommunications that may be sent or received under that service, and includes a telephone, facsimile machine, modem and television;

"use" includes

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

(b) the leasing by a person of tangible personal property to another person,

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

(d) the provision of tangible personal property by way of promotional distribution, as well as the use of it by the person to whom the tangible personal property is provided,

(e) in the definition of "user" for the purposes of section 11 (1) (b), the employment or utilization of tangible personal property by its owner, an employee of that owner or an independent contractor retained by that owner, in the course of carrying out work or performing services for another person,

(e.1) the consumption, employment or utilization of tangible personal property by a business in the course of delivering a service, and

(e.2) the provision by a registered charity of tangible personal property of nominal value as a gift in return for a donation,

except that use does not include

(f) the exercising of a right or power over or the storing, keeping or retaining of tangible personal property that was brought into British Columbia for the sole purpose of subsequently transporting it out of British Columbia for use outside British Columbia,

(g) the exercising of a right or power over or the storing, keeping or retaining of tangible personal property that was brought into British Columbia for the sole purpose of being processed, fabricated or manufactured into, or attached to or incorporated into, other tangible personal property that is to be transported outside British Columbia for use solely outside British Columbia,

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

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

"user" means a person who utilizes in British Columbia tangible personal property

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

(b) for the consumption or use of another person at the first person's expense, or

(c) on behalf of, or as the agent for, a principal who desires to acquire such property for the consumption or use by the principal or another person at the principal's expense,

and includes a promotional distributor to the extent that the purchase price of the tangible personal property provided by way of promotional distribution exceeds the amount of the payment specifically made for the tangible personal property by the person to whom the tangible personal property is provided;

"vehicle" means vehicle as defined in the Motor Vehicle Act;

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

"vendor" means a person, including an assignee, liquidator, administrator, receiver, receiver manager, trustee or similar person, who, in the ordinary course of the person's business, in British Columbia, sells tangible personal property to a purchaser at a retail sale in British Columbia, but does not include a person described in section 92.2 (3).

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

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

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

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

(3) For the purposes of this Act, a person who, for the benefit or use of another person, agrees to pay or is otherwise obliged to pay consideration for a service or right referred to in subsection (4)

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

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

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

(4) Subsection (3) applies with respect to the following services and rights:

(a) legal services;

(b) parking rights;

(c) taxable services;

(d) telecommunication services.

(5) For the purposes of this Act, if there is a reference in this Act to a repealed provision of this Act, the repealed provision must be construed as not being repealed so far as is necessary to give effect to the reference in this Act to that repealed provision.

Proof of residence in British Columbia

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

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

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

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

Deputy commissioners

3  The commissioner may appoint an employee of the government as a deputy commissioner and may delegate to a deputy commissioner any of the duties and powers exercisable by the commissioner under this Act.

Demand for information

3.1  (1) For any purpose related to the administration or enforcement of this Act or the regulations, the commissioner or a person authorized by the commissioner may, by demand notice, require from any person

(a) a return,

(b) any information or additional information,

(c) the production of any records, or

(d) a written statement.

(2) A demand notice under subsection (1)

(a) must be delivered to the person by personal service, registered mail, electronic mail or fax,

(b) must specify a reasonable time by which the person must comply with the demand notice, and

(c) in relation to a requirement under subsection (1) (d), may require the written statement to be made by way of affidavit or statutory declaration.

(3) A person to whom a demand notice is delivered under this section must comply with the notice within the time specified in the notice.

(4) Under this Act, an affidavit by the commissioner, or the authorized person referred to in subsection (1), in which are stated the facts necessary to establish

(a) compliance by the commissioner or authorized person with this section, or

(b) default by a person on whom a demand was made under this section

must be admitted as evidence in any court and is proof, in the absence of evidence to the contrary, of the facts stated.

Confidentiality

4  A person who has custody of or control over information or records under this Act must not disclose the information or records to any other person except as follows:

(a) in the course of administering or enforcing this or another taxation Act;

(b) in court proceedings relating to this or another taxation Act;

(c) as provided in, or ordered under, section 39 (3), 40 (1), 99 (5) or 100 (1) of the Family Relations Act or section 8 (3) or 9 (2) of the Family Maintenance Enforcement Act;

(d) under an agreement that

(i)  is between the government and another government,

(ii)  relates to the administration or enforcement of taxation enactments, and

(iii)  provides for the disclosure of information and records to and the exchange of similar information and records with that other government;

(e) for the purpose of compiling statistical information by the government or the government of Canada;

(f) under an agreement that

(i)  is between the government and the South Coast British Columbia Transportation Authority,

(ii)  relates to the tax on the purchase of parking rights under Division 8 of Part 2, and

(iii)  provides for the disclosure of information and records to and the exchange of similar information and records with the South Coast British Columbia Transportation Authority.

Valuation by commissioner

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

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

(i)  that passes at a sale,

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

(iii)  that is delivered in British Columbia, or

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

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

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

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

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

(3) For the purposes of paragraph (e) of the definition of "sale" and paragraph (e.2) of the definition of "use", the commissioner may determine whether tangible personal property or a type of tangible personal property has a nominal value.

Calculation of tax if price reduced

4.2  If

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

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

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

Part 1.2 — Transitional Rules

Definitions

4.8  (1) In this Part, "application sections" means sections 5.1, 10.1, 15.1, 20.01, 21.01, 22.01, 37.1, 40.1, 47.1, 54.1 and 68.22.

(2) In this Part and in the application sections, "consideration" has the same meaning as in Part IX [Goods and Services Tax] of the Excise Tax Act (Canada).

When consideration becomes due

4.81  (1) For the purposes of the application sections, all or a portion of the consideration for the purchase or lease of tangible personal property, a taxable service, legal services or a telecommunication service becomes due on the earliest of the following:

(a) the earlier of

(i)  the day the vendor or lessor first issues an invoice in respect of the sale or lease for that consideration or portion of that consideration, and

(ii)  the date of the invoice;

(b) the day the vendor or lessor would have issued an invoice in respect of the sale or lease for that consideration or portion of that consideration but for an undue delay;

(c) the day the purchaser or lessee is required to pay that consideration or portion of that consideration to the vendor or lessor under a written agreement.

(2) Despite subsection (1), if tangible personal property, a taxable service, legal services or a telecommunication service is supplied by means of a lease, licence or similar arrangement under a written agreement, for the purposes of the application sections, all or a portion of the consideration for the property or service becomes due on the day the purchaser or lessee is required to pay the consideration or portion of the consideration to the vendor or lessor under the agreement.

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

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

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

When purchase price or lease price becomes due

4.82  (1) For the purposes of section 61.1 and the application sections except sections 20.01, 21.01 and 22.01, all or a portion of the purchase price of tangible personal property, a taxable service, legal services, a telecommunication service or a parking right becomes due on the earliest of the following:

(a) the earlier of

(i)  the day the vendor first issues an invoice in respect of the sale for that purchase price or portion of that purchase price, and

(ii)  the date of the invoice;

(b) the day the vendor would have issued an invoice in respect of the sale for that purchase price or portion of that purchase price but for an undue delay;

(c) the day the purchaser is required to pay that purchase price or portion of that purchase price to the vendor under a written agreement.

(2) For the purposes of sections 20.01, 21.01 and 22.01, all or a portion of the lease price of leased property becomes due on the earliest of the following:

(a) the earlier of

(i)  the day the lessor first issues an invoice in respect of the lease for that lease price or portion of that lease price, and

(ii)  the date of the invoice;

(b) the day the lessor would have issued an invoice in respect of the lease for that lease price or portion of that lease price but for an undue delay;

(c) the day the lessee is required to pay that lease price or portion of that lease price to the lessor under a written agreement.

(3) Despite subsections (1) and (2), if tangible personal property, leased property, a taxable service, legal services or a telecommunication service is supplied by means of a lease, licence or similar arrangement under a written agreement, for the purposes of the application sections,

(a) all or a portion of the purchase price for the tangible personal property, taxable service, legal services or telecommunication service becomes due on the day the purchaser is required to pay that purchase price or portion of that purchase price to the vendor under the agreement, and

(b) all or a portion of the lease price for the leased property becomes due on the day the lessee is required to pay that lease price or portion of that lease price to the lessor under the agreement.

(4) For the purposes of section 61.1, the application sections and this section, if consideration that is not money is given or required to be given on account of the purchase price or lease price,

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

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

Deposits

4.83  For the purposes of the application sections, a deposit, whether refundable or not, given in respect of a supply is not consideration paid for the supply unless and until the supplier applies the deposit as consideration for the supply.

Determinations by commissioner

4.84  (1) For the purposes of section 20.01 (3), 20.3 (3), 21.01 (3), 22.01 (3), 37.1 (4), 40.1 (3), 41.1 (3), 47.1 (3) or 54.1 (3), if the commissioner believes that the attribution by the taxpayer of the consideration, lease price, price or purchase price under the section is not an appropriate attribution, the commissioner may determine the attribution of the consideration, lease price, price or purchase price for the purposes of that section.

(2) For the purposes of the application sections,

(a) the commissioner may determine the consideration for tangible personal property that

(i)  passes at a sale,

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

(iii)  is delivered in British Columbia, and

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

(3) For the purposes of the application sections,

(a) the commissioner may determine the consideration for a lease of leased property, and

(b) if the commissioner makes a determination under paragraph (a), the consideration for the leased property is as determined by the commissioner under that paragraph.

(4) For the purposes of the application sections,

(a) the commissioner may determine the consideration for a provision of a taxable service, legal services or a telecommunication service, and

(b) if the commissioner makes determination under paragraph (a), the consideration for the taxable service, legal services or telecommunication service is as determined by the commissioner under that paragraph.

Time when tax must be paid

4.85  (1) Despite any other provision of this Act or the regulations, but subject to subsection (2), tax imposed by this Act that is not otherwise payable on or before December 31, 2010 must be paid by December 31, 2010.

(2) Subsection (1) does not apply

(a) to penalties and interest that are or may be added to tax under this Act,

(b) to tax payable under section 25 (1), or

(c) if the time at which the tax is payable is otherwise provided for by regulation under section 93.1 (7) or 140.

Part 2 — Imposition of Tax

Division 1 — Tax in relation to Purchase and Use

Provincial sales tax

5  (1) At the time of making a purchase, the purchaser must pay to the government a tax at the applicable rate under section 6.

(1.1) [Repealed 2010-5-92.]

(2) If a person sells tangible personal property at a retail sale in British Columbia to a person who alleges that the tangible personal property is not being purchased for consumption or use, the seller must nevertheless require the other person to pay the tax, but the payment must be refunded by the commissioner on receipt of satisfactory evidence that the tax was wrongly paid.

(3) A purchaser who, after March 30, 1998, pays or is liable to pay a charge described in paragraph (a) (iv) of the definition of "purchase price" in respect of tangible personal property purchased by that purchaser must, unless the charge was included or reflected in the purchase price of the tangible personal property at the time of its purchase, pay to the government a tax in respect of the charge at the applicable rate under section 6, whether or not

(a) the purchase of the tangible personal property occurred before March 31, 1998, or

(b) more than 4 years have elapsed since the date of the purchase of the tangible personal property.

(4) The tax under subsection (3) must be calculated separately for each charge and must be paid at the earlier of

(a) the time each charge is paid, and

(b) the time each charge becomes payable.

Transition — application of section 5

5.1  (1) The definitions of "magazines", "newspapers" and "periodicals" in section 1 (1) do not apply to the first reference to a form of those words in subsection (2) of this section.

(2) In this section, "publication" means a magazine, newspaper or periodical other than a magazine, newspaper or periodical exempt from tax under section 5.

(3) Subject to subsection (4), tax is payable by a purchaser under section 5 in respect of a purchase of tangible personal property

(a) if, before May 1, 2010, the consideration for the tangible personal property becomes due or is paid without having become due,

(b) if, before July 1, 2010, ownership of the tangible personal property is transferred or the tangible personal property is delivered to the purchaser, or

(c) if,

(i)  before May 1, 2010, only a portion of the consideration for the tangible personal property becomes due or is paid without having become due, and

(ii)  on or after July 1, 2010, ownership of the tangible personal property is transferred and the tangible personal property is delivered to the purchaser.

(4) Tax is payable by a purchaser under section 5 in respect of a purchase of tangible personal property that is a subscription for a publication if a portion of the consideration for the subscription becomes due before July 1, 2010 or is paid before July 1, 2010 without having become due.

(5) Subject to subsection (6), tax is not payable by a purchaser under section 5 in respect of a purchase of tangible personal property if

(a) all of the consideration for the tangible personal property becomes due on or after May 1, 2010,

(b) none of the consideration for the tangible personal property is paid before May 1, 2010, and

(c) on or after July 1, 2010, ownership of the tangible personal property is transferred and the tangible personal property is delivered to the purchaser.

(6) Tax is not payable by a purchaser under section 5 in respect of a purchase of tangible personal property that is a subscription for a publication if

(a) all of the consideration for the subscription becomes due on or after July 1, 2010, and

(b) none of the consideration for the subscription is paid before July 1, 2010.

(7) If tax is payable under section 5 by reason of subsection (3) (c) of this section, for the purpose of calculating the tax payable under section 5, the purchase price of the tangible personal property is deemed to be the amount equal to the purchase price of the tangible personal property less that portion of the consideration for the tangible personal property that is not paid before May 1, 2010 and becomes due on or after May 1, 2010.

(8) If, in respect of a purchase of propane, tax is payable under section 5 by reason of subsection (3) (c) of this section, for the purpose of calculating the tax payable under section 5 as determined under section 6 (5), tax is payable in respect of the volume of propane determined by the following formula:

volume = total volume  x  portion of purchase price

purchase price
 

where

total volume  =  the total volume of the propane;
portion of purchase price  =  the purchase price of the propane less that portion of the purchase price of the propane that is not paid before May 1, 2010 and becomes due on or after May 1, 2010;
purchase price  =  the purchase price of the propane.

(9) If tax is payable under section 5 by reason of subsection (4) of this section, for the purpose of calculating the tax payable under section 5, the purchase price of the tangible personal property that is a subscription for a publication is deemed to be the amount equal to the purchase price of the subscription less that portion of the consideration for the subscription that is not paid before July 1, 2010 and becomes due on or after July 1, 2010.

Rates of tax

6  (1) Subject to subsections (2), (3) and (5), the rate of the tax payable under section 5 (1) is 7% of the purchase price of the tangible personal property.

(2) Despite any other provision of this Division, the rate of the tax payable under section 5 (1) on liquor is 10% of the purchase price.

(3) Despite any other provision of this Division but subject to subsection (4), the rate of the tax payable under section 5 (1) on a passenger vehicle is as follows:

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

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

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

(d) 10% of the purchase price of the passenger vehicle, if the purchase price is $57 000 or more.

(4) If a passenger vehicle qualifies under the regulations as an alternative fuel vehicle, the applicable tax rate established under subsection (3) must be determined in accordance with the regulations.

(4.1) Despite any other provision of this Division, the tax payable under sections 5 (1), 11 and 16 on a manufactured home is the rate established under subsection (1) of this section applied to the prescribed percentage of the purchase price, or if section 11(4.1) applies, the fair market value, of the manufactured home, if the manufactured home

(a) is a mobile home referred to in paragraph (a) or (b) of the definition of "manufactured home" in section 1, and

(b) is designed for, and will be used as, a family residential dwelling unit.

(4.2) Despite any other provision of this Division, the tax payable under sections 5 (1), 11 and 16 on a manufactured home is the rate established under subsection (1) of this section applied to a prescribed percentage of the purchase price, or if section 11(4.1) applies, the fair market value, of the manufactured home, if the manufactured home

(a) is a modular home referred to in paragraph (c) or (d) of the definition of "manufactured home" in section 1, and

(b) is designed for, and will be used as, a family residential dwelling unit.

(4.3) For the purpose of subsections (4.1) and (4.2), "family residential dwelling unit" does not include

(a) a recreational vehicle or a component such as a travel trailer, including a Park Model travel trailer manufactured to Canadian Standards Association Standard Z240, a tent trailer, a motor home, a slide-on camper, a chassis mounted camper or another vehicle or component of the same general classes, or

(b) a prescribed structure, vehicle or component used for a prescribed purpose.

(4.4) Subsections (4.1) and (4.2) do not apply to the following:

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

(b) repair parts purchased for a manufactured home;

(c) taxable services provided in respect of a manufactured home.

(5) Despite any other provision of this Division, the rate of the tax payable under section 5 (1) on propane that is taxable under this Act is 2.7 cents per litre of propane.

Liquor sold under special occasion licence

7  (1) If liquor is acquired for sale under a special occasion licence that will be in effect before July 1, 2010, the holder of that licence or the agent of the holder must, at the time the licence is purchased,

(a) inform the authorized branch representative of the amount of the total proceeds expected from the sale of the liquor at the special occasion, and

(b) pay to that representative an amount equal to the additional tax that would be collectable under this Act based on the expected proceeds of the sales.

(2) If the amount of tax collectable on the actual sale of the liquor in respect of which payment was made under subsection (1) is less than the amount of the payment under subsection (1), the commissioner may refund the amount of the difference out of the consolidated revenue fund.

Transition — application of section 7

7.1  (1) Tax is payable under section 7 in respect of liquor acquired for sale under a special occasion licence if

(a) the licence is purchased before May 1, 2010, or

(b) the licence is in effect before July 1, 2010.

(2) Tax is not payable under section 7 in respect of liquor acquired for sale under a special occasion licence if

(a) the licence is purchased on or after May 1, 2010, and

(b) the licence is in effect only on or after July 1, 2010.

Repealed

8-9  [Repealed 2010-5-97.]

Tax if trade-in allowed on purchase

10  (1) If tangible personal property, on which the purchaser has previously paid the applicable tax, is accepted at the time of sale by the seller on account of the price of the tangible personal property sold, the purchaser must pay a tax at the rate of

(a) 7% of the difference between the purchase price of the tangible personal property sold and the credit allowed for the tangible personal property accepted on account of the purchase price in trade, or

(b) if the tangible personal property sold is a passenger vehicle, at the applicable rate as follows:

(i)  7% of the difference referred to in paragraph (a), if the purchase price of the passenger vehicle is less than $55 000;

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

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

(iv)  10% of that difference, if the purchase price of the passenger vehicle is $57 000 or more.

(2) Subsection (1) does not apply if the tangible personal property sold or the tangible personal property accepted on account of the property sold is a multijurisdictional vehicle.

Transition — application of section 10

10.1  (1) Tax is payable by a purchaser under section 10 in respect of the tangible personal property sold

(a) if, before May 1, 2010, the consideration for the tangible personal property sold becomes due or is paid without having become due,

(b) if, before July 1, 2010, ownership of the tangible personal property sold is transferred or the tangible personal property sold is delivered to the purchaser, or

(c) if,

(i)  before May 1, 2010, only a portion of the consideration for the tangible personal property sold becomes due or is paid without having become due, and

(ii)  on or after July 1, 2010, ownership of the tangible personal property sold is transferred and the tangible personal property sold is delivered to the purchaser.

(2) Tax is not payable by a purchaser under section 10 in respect of the tangible personal property sold if

(a) all of the consideration for the tangible personal property sold becomes due on or after May 1, 2010,

(b) none of the consideration for the tangible personal property sold is paid before May 1, 2010, and

(c) on or after July 1, 2010, ownership of the tangible personal property sold is transferred and the tangible personal property sold is delivered to the purchaser.

(3) If tax is payable under section 10 by reason of subsection (1) (c) of this section, for the purpose of calculating the tax payable under section 10, the purchase price of the tangible personal property sold is deemed to be the amount equal to the purchase price of the tangible personal property sold less that portion of the consideration for the tangible personal property sold that is not paid before May 1, 2010 and becomes due on or after May 1, 2010.

Tax if property brought into B.C. for use

11  (1) This section applies to a person

(a) who

(i)  resides, ordinarily resides or carries on business in British Columbia or enters British Columbia with the intention of residing or carrying on business in British Columbia, and

(ii)  before July 1, 2010, brings or sends into British Columbia, or receives delivery of in British Columbia, tangible personal property, other than a multijurisdictional vehicle, for use or consumption

(A)  by the person,

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

(C)  by another person for whom the first person acts as agent, or

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

(b) who uses in British Columbia in the course of the person's business, whether or not the business is carried on in British Columbia, tangible personal property, other than a multijurisdictional vehicle,

(i)  that the person has not leased, as lessee, and

(ii)  that the person brought or had sent into British Columbia or that the person received delivery of in British Columbia before July 1, 2010.

(2) For the purposes of subsection (1), a person is deemed to be carrying on business in British Columbia if an employee or other representative of that person carries on activities in British Columbia on that person's behalf for the purpose of promoting the sale or use of that person's products or services.

(2.1) For the purposes of subsection (1) (b), a person is deemed to use tangible personal property in the course of the person's business if

(a) the property is used

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

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

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

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

(3) A person to whom this section applies under subsection (1) must

(a) immediately report the matter in writing to the commissioner,

(b) supply to the commissioner all pertinent information required by the commissioner in respect of the tangible personal property, and

(c) pay to the government, at the time or within the period specified in section 14, tax calculated in accordance with this section and sections 12 and 13.

(4) Subject to subsections (4.1), (5) and (7), tax payable under subsection (3) must be calculated by multiplying the purchase price of the tangible personal property by the rate in section 6 on the entry date of the property.

(4.1) Subject to subsections (4.2) and (5), tax payable under subsection (3) with respect to tangible personal property that is brought or sent into British Columbia by, or is delivered in British Columbia to, a person who received the tangible personal property as a gift must be calculated by multiplying the fair market value of the tangible personal property by the rate in section 6 on the entry date of the property.

(4.2) Subsection (4.1) does not apply if there is evidence satisfactory to the commissioner that

(a) the person who provided the gift did not reside or ordinarily reside in British Columbia,

(b) the person who provided the gift

(i)  paid tax under this Act, or

(ii)  paid a sales tax to another province or under section 165 (2) of the Excise Tax Act (Canada),

and that person is not eligible for a refund or rebate under this Act or under the law of the other jurisdiction, or

(c) the gift meets a prescribed circumstance.

(5) Subsections (4) and (4.1) do not apply to

(a) tangible personal property to which section 12 (1) to (3) or section 13 applies, or

(b) a multijurisdictional vehicle.

(6) Subsection (7) applies to a motor vehicle

(a) acquired outside British Columbia but in Canada, and

(b) brought or sent into British Columbia or the delivery of which is received in British Columbia.

(7) Subject to subsection (8), if a motor vehicle, on which the person referred to in subsection (3) has previously paid the tax under this Act, is accepted at the time of sale of a motor vehicle to which this section applies by the seller on account of the price of the motor vehicle sold, the person referred to in subsection (3) must pay tax at the rate of

(a) 7% of the difference between the purchase price of the motor vehicle sold and the credit allowed for the motor vehicle accepted on account of the purchase price in trade, or

(b) if the motor vehicle sold is a passenger vehicle, at the applicable rate as follows:

(i)  7% of the difference referred to in paragraph (a), if the purchase price of the passenger vehicle is less than $55 000;

(ii)  8% of the difference referred to in paragraph (a), if the purchase price of the passenger vehicle is $55 000 or more but less than $56 000;

(iii)  9% of the difference referred to in paragraph (a), if the purchase price of the passenger vehicle is $56 000 or more but less than $57 000;

(iv)  10% of the difference referred to in paragraph (a), if the purchase price of the passenger vehicle is $57 000 or more.

(8) Subsections (6) and (7) do not apply to a motor vehicle to which section 12 applies or to a multijurisdictional vehicle.

Calculation of tax if use in British Columbia temporary

12  (1) This section applies to tangible personal property in relation to which tax is payable under section 11 (3), other than

(a) property described in section 13 (1), or

(b) a multijurisdictional vehicle.

(2) If the person liable to pay tax under section 11 (3) establishes to the satisfaction of the commissioner that the property is brought or sent into British Columbia, or is delivered in British Columbia, for temporary use, the tax payable on that property must be calculated in accordance with the following formula:

Tax = (purchase price x rate) ÷ 3
where
purchase price  =  the purchase price of the property;
rate  =  the rate in section 6 on the entry date of the property.

(3) The tax must be calculated under subsection (2) separately for each 12 month period during any part of which the tangible personal property is in British Columbia, but the person is not liable

(a) to pay tax on the property if it is in British Columbia during that period for fewer than a prescribed number of days, or

(b) to pay to the government a total amount of tax on that property in excess of an amount equal to the amount determined in accordance with the following formula:

Amount = (purchase price x rate) – other sales tax
where
purchase price  =  the purchase price of the property or, in respect of prescribed tangible personal property referred to in section 19 (1), the deemed purchase price of that property on its entry date;
rate  =  the rate in section 6 on the entry date of the property;
other sales tax  =  the retail sales tax the person has paid on the property to another province.

(4) Subsection (1) does not apply in respect of tangible personal property that is brought or sent into, or delivered in, British Columbia for use as a part of any other tangible personal property.

Calculation of tax if property is conveyance used interjurisdictionally

13  (1) Tax payable under section 11 (3) on the following must be calculated in accordance with subsection (2):

(a) an aircraft used

(i)  interprovincially or internationally for commercial purposes, and

(ii)  in flights originating or terminating in British Columbia or connecting 2 or more points in British Columbia;

(b) a part of an aircraft described in paragraph (a);

(c) any railway rolling stock used interprovincially or internationally;

(d) a vessel or any other conveyance, other than an aircraft, used in interprovincial or international trade for the commercial carriage of passengers or goods;

(e) a part of any railway rolling stock described in paragraph (c) or of a vessel or other conveyance described in paragraph (d).

(2) The formula to be used for calculating tax payable under section 11 (3) on tangible personal property to which this section applies is as follows:

Tax = purchase price x rate x (BC usage ÷ total usage)
where
purchase price  =  purchase price of the tangible personal property;
rate  =  the rate in section 6 on the entry date of the tangible personal property;
BC usage  =  the applicable meaning established under subsections (3) to (7);
total usage  =  the applicable meaning established under subsections (3) to (7).

(3) For an aircraft described in subsection (1) (a), the tax payable must be calculated in accordance with the formula under subsection (2) using the following:

BC usage  =  the number of hours the aircraft will fly in the airspace over British Columbia in the flights referred to in subsection (1) (a) (ii) during the period beginning on the entry date of the aircraft and ending on the third anniversary of that date;
total usage  =  the total number of hours the aircraft will fly during the period referred to in the definition of "BC usage" in this subsection.

(4) For a part described in subsection (1) (b), the tax payable under section 11 (3) must be calculated in accordance with the formula under subsection (2) using the following:

BC usage  =  the number of hours the aircraft in which the part is or is to be installed will fly in the airspace over British Columbia in the flights referred to in subsection (1) (a) (ii) during,
    (a) in the case of a prescribed part, the period beginning on the entry date of the prescribed part and ending on the third anniversary of that date, and
    (b) in any other case, the 12 months after the entry date of the part;
total usage  =  the total number of hours the aircraft in which the part is or is to be installed will fly during the period referred to in the definition of "BC usage" in this subsection.

(5) For railway rolling stock described in subsection (1) (c), or for a vessel or other conveyance described in subsection (1) (d), the tax payable under section 11 (3) must be calculated in accordance with the formula under subsection (2) using the following:

BC usage  =  the distance the conveyance will travel, during the 12 months after its entry date, in British Columbia or, if the conveyance is a vessel, in the waters of British Columbia;
total usage  =  the total distance the conveyance will travel during the 12 months after its entry date.

(6) For a part described in subsection (1) (e), the tax payable under section 11 (3) must be calculated in accordance with the formula under subsection (2) using the following:

BC usage  =  the distance the conveyance in which the part is or is to be installed will travel, during the 12 months after the entry date of the part, in British Columbia or, if the conveyance is a vessel, in the waters of British Columbia;
total usage  =  the total distance the conveyance in which the part is or is to be installed will travel during the 12 months after the entry date of the part.

(7) For the purpose of calculating under this section the tax payable under section 11 (3),

(a) the number of hours or the distance a conveyance will travel during the relevant period in the airspace over, in the waters of or in British Columbia, and

(b) the total number of hours or the total distance the conveyance will travel during the period referred to in paragraph (a)

must be based on a reasonable estimate of those hours or distances.

(8) If

(a) the actual number of hours or the actual distance a conveyance travels during the relevant period in the airspace over, in the waters of or in British Columbia, and

(b) the total actual number of hours or the total actual distance the conveyance travels during that period

results in a different ratio from the ratio based on the estimate made under subsection (7), the tax must be adjusted accordingly at the end of that period and sections 80, 81, 82 (1), 83 to 88, 115 and 117 apply.

When tax is to be paid on property coming into British Columbia

14  (1) Tax is payable under section 11 (3) as follows:

(a) for tangible personal property described in section 12 (1), within 23 days after the day the property is first used in British Columbia during the 12 month period in respect of which tax is payable;

(b) for tangible personal property that is described in section 13 (1) (a) to (d), within 23 days after the last day of the month in which the property is brought or sent into, or is delivered in, British Columbia;

(c) and (d) [Repealed 2010-5-100.]

(e) in any other case, on the entry date of the tangible personal property.

(2) If more tax is required to be paid when tax calculated under section 13 (2) to (6) is adjusted under section 13 (8), the additional tax is payable within 23 days after the date the tax is adjusted.

Tax if conveyance purchased in B.C. for interjurisdictional use

15  (1) Subject to section 15.1, this section applies to a person

(a) who purchases in British Columbia an aircraft, vessel, railway rolling stock or other conveyance, and

(b) who, from the date of purchase, uses the conveyance in interprovincial or international trade for the commercial carriage of passengers or goods.

(2) Despite any other provision of this Division, a person referred to in subsection (1) must pay, on the date of purchase in British Columbia, tax calculated in accordance with section 13 (3) or (5).

Transition — application of section 15

15.1  (1) Tax is payable by a person under section 15 in respect of an aircraft, vessel, railway rolling stock or other conveyance

(a) if, before May 1, 2010, the consideration for the conveyance becomes due or is paid without having become due,

(b) if, before July 1, 2010, ownership of the conveyance is transferred or the conveyance is delivered to the person, or

(c) if,

(i)  before May 1, 2010, only a portion of the consideration for the conveyance becomes due or is paid without having become due, and

(ii)  on or after July 1, 2010, ownership of the conveyance is transferred and the conveyance is delivered to the person.

(2) Tax is not payable by a person under section 15 in respect of an aircraft, vessel, railway rolling stock or other conveyance if

(a) all of the consideration for the conveyance becomes due on or after May 1, 2010,

(b) none of the consideration for the conveyance is paid before May 1, 2010, and

(c) on or after July 1, 2010, ownership of the conveyance is transferred and the conveyance is delivered to the person.

(3) If tax is payable under section 15 by reason of subsection (1) (c) of this section, for the purpose of calculating the tax payable under section 15, the purchase price of the tangible personal property that is the conveyance is deemed to be the amount equal to the purchase price of the tangible personal property less that portion of the consideration for the tangible personal property that is not paid before May 1, 2010 and becomes due on or after May 1, 2010.

Tax if property brought into British Columbia by non-residents

16  (1) In this section, "non-resident" means a person who does not reside, ordinarily reside or carry on business in British Columbia and who

(a) owns real property in British Columbia, or

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

(2) A non-resident who brings or sends tangible personal property into British Columbia before July 1, 2010, or who receives delivery of tangible personal property in British Columbia before July 1, 2010, must comply with subsection (3) if the tangible personal property is, for the 12 month period following its entry into British Columbia, to be used or consumed

(a) primarily in British Columbia, and

(b) primarily by one or more of the following:

(i)  the non-resident;

(ii)  a person for whom the non-resident acts as agent;

(iii)  a person whose use or consumption of the tangible personal property is at the expense of the non-resident;

(iv)  a person whose use or consumption of the tangible personal property is at the expense of a principal for whom the non-resident acts as agent.

(3) A non-resident to whom subsection (2) applies must

(a) immediately report the matter in writing to the commissioner,

(b) supply to the commissioner all pertinent information required by the commissioner in respect of the tangible personal property, and

(c) pay to the government tax on the purchase price or lease price of the tangible personal property at the rate in section 6 or 20, as the case may be.

Repealed

17  [Repealed 2004-9-7.]

Conversion to litres of propane

17.1  For the purpose of determining the amount of tax that, in relation to propane, is payable under this Act, the commissioner may establish formulas for converting measures of propane other than in litres into litres of propane.

How tax is to be calculated

18  (1) The tax imposed by this Act must be

(a) calculated separately on every purchase, and

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

(2) If several items of tangible personal property are purchased on the same occasion or as part of one transaction, the total of the purchases is deemed to be one purchase for the purposes of this Act.

Effect of depreciation on purchase price valuation

19  (1) If prescribed tangible personal property, other than property acquired for resale, becomes subject to tax under section 11 (3), the purchase price of the property is deemed to be the greater of the following amounts:

(a) the depreciated value, determined in accordance with the regulations, of the prescribed tangible personal property on the date it becomes subject to tax under the applicable subsection;

(b) 50% of the purchase price of the prescribed tangible personal property.

(2) For the purpose of calculating under section 12 (1) the tax payable in respect of each 12 month period on prescribed tangible personal property referred to in subsection (1), the date on which that property becomes subject to tax is

(a) the first day during that period in which that property is in British Columbia, or

(b) if that property is in British Columbia for a continuous period of more than 12 months, the first day of that continuous period.

(3) If prescribed tangible personal property becomes subject to tax under section 16, the purchase price of the property is deemed to be the greater of the following amounts:

(a) the depreciated value, as determined in accordance with the regulations, of the prescribed tangible personal property at the time it is brought, sent or delivered into British Columbia;

(b) 50% of the purchase price of the prescribed tangible personal property.

Division 2 — Tax in relation to Leases

Tax on leases in British Columbia

20  (1) Subject to this section and sections 20.01, 20.1 and 21 (3), a lessee must pay to the government a tax as follows:

(a) if the leased property is not a passenger vehicle, at the rate of 7% of the lease price of the leased property;

(b) if the leased property is a passenger vehicle, at the applicable rate as follows:

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

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

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

(iv)  10% of the lease price, if the tax rate value of the passenger vehicle is $57 000 or more.

(2) For the purposes of subsection (1) (b), the tax rate value in respect of a passenger vehicle

(a) means the fair market value of the vehicle,

(b) must be determined under paragraph (a) as at the later of

(i)  March 31, 1993, and

(ii)  the first date on which the vehicle is leased by the lessor, and

(c) is, for so long as the lessor remains the owner of the vehicle, the tax rate value determined for the vehicle under paragraphs (a) and (b).

(3) If a passenger vehicle qualifies under the regulations as an alternative fuel vehicle, the applicable tax rate established under subsection (1) (b) and the tax rate value under subsection (2) must be determined in accordance with the regulations.

(4) Subsection (1) does not apply to a multijurisdictional vehicle, other than a short term rental vehicle.

Transition — application of section 20

20.01  (1) Tax is payable by a lessee under section 20 in respect of leased property

(a) if, before May 1, 2010, the consideration for the leased property becomes due or is paid without having become due,

(b) if the rental period under the lease begins before July 1, 2010 and ends before July 31, 2010,

(c) if the rental period under the lease begins before July 1, 2010 and ends on or after July 31, 2010, or

(d) if

(i)  before May 1, 2010, only a portion of the consideration for the leased property becomes due or is paid without having become due, and

(ii)  the rental period under the lease begins on or after July 1, 2010.

(2) Tax is not payable by a lessee under section 20 in respect of leased property if

(a) all of the consideration for the leased property becomes due on or after May 1, 2010,

(b) none of the consideration for the leased property is paid before May 1, 2010, and

(c) the rental period under the lease begins on or after July 1, 2010.

(3) If tax is payable under section 20 by reason only of subsection (1) (c) of this section, for the purpose of calculating the tax payable under section 20, the lease price of the leased property is deemed to be the amount equal to the lease price of the leased property less that portion of the consideration for the leased property that

(a) is not paid before May 1, 2010,

(b) becomes due on or after May 1, 2010, and

(c) is attributable to the portion of the rental period that is on or after July 1, 2010.

(4) If tax is payable under section 20 by reason of subsection (1) (d) of this section, for the purpose of calculating the tax payable under section 20, the lease price of the leased property is deemed to be the amount equal to the lease price of the leased property less that portion of the consideration for the leased property that is not paid before May 1, 2010 and becomes due on or after May 1, 2010.

Tax on motor vehicle leased outside British Columbia

20.1  (1) to (2) [Repealed 2010-5-108.]

(3) If a person has paid tax under subsection (1) in respect of a motor vehicle, the commissioner may pay from the consolidated revenue fund a refund of the difference between the tax paid at the time of registering the vehicle less the sum of all taxes that would have otherwise been payable under section 20 or 21.

(4) A person who pays tax under this section is not required to pay tax under section 20 (1) or 21 (2) with respect to the same lease agreement.

Tax on property occasionally supplied with operator

20.2  A person, other than a person who has paid tax under section 9 (1.1) or (1.3), who

(a) purchases tangible personal property exempt from tax under section 78 (1.2), or

(b) is referred to in section 9 (1.2)

must, when the property is, under an agreement, supplied with a person to operate it, pay tax at the applicable rate under section 20 on the price at which that property would have been leased had it been leased without supplying a person to operate it.

Transition — application of section 20.2

20.3  (1) Tax is payable under section 20.2 in respect of tangible personal property if

(a) the tangible personal property is substantially supplied before July 1, 2010, or

(b) paragraph (a) of this subsection does not apply and the tangible personal property is supplied for a period that begins before July 1, 2010 and ends on or after July 1, 2010.

(2) Tax is not payable under section 20.2 in respect of tangible personal property if the tangible personal property is supplied on or after July 1, 2010.

(3) If tax is payable under section 20.2 by reason of subsection (1) (b) of this section, for the purpose of calculating the tax payable under section 20.2, the price at which the tangible personal property would have been leased had it been leased without supplying a person to operate it is deemed to be the portion of that price that is attributable to the portion of the period that is before July 1, 2010.

Tax if leased property brought into British Columbia

21  (1) This section applies to the following:

(a) a person who

(i)  resides, ordinarily resides or carries on business in British Columbia or enters British Columbia with the intention of residing or carrying on business in British Columbia, and

(ii)  before July 1, 2010, brings or sends into British Columbia or receives delivery in British Columbia of tangible personal property, other than a multijurisdictional vehicle, that the person has leased, as lessee;

(b) a person who, before July 1, 2010, uses in British Columbia in the course of the person's business, whether or not the person's business is carried on in British Columbia, tangible personal property, other than a multijurisdictional vehicle, that the person has leased, as lessee;

(c) a lessee who

(i)  leases in British Columbia any railway rolling stock, and

(ii)  from the date the lease is granted, uses the railway rolling stock interprovincially or internationally;

(d) a lessee who

(i)  leases in British Columbia an aircraft, and

(ii)  from the date the lease is granted, uses the aircraft interprovincially or internationally for commercial purposes;

(e) a lessee who

(i)  leases in British Columbia a vessel or other conveyance, other than railway rolling stock or an aircraft, and

(ii)  from the date the lease is granted, uses the conveyance in interprovincial or international trade for the commercial carriage of passengers or goods.

(1.1) For the purposes of subsection (1) (b), a person is deemed to use tangible personal property in the course of the person's business if

(a) the property is used

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

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

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

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

(2) Subject to section 20.1, a person to whom this section applies under subsection (1) (a) or (b) must

(a) immediately report the matter in writing to the commissioner,

(b) supply to the commissioner all pertinent information required by the commissioner in respect of the leased property, and

(c) pay to the government, at the time specified in section 24, tax calculated in accordance with subsections (4) to (6) of this section and section 23.

(3) Despite section 20 (1), a person to whom this section applies under subsection (1) (c) to (e) must pay tax calculated in accordance with subsections (4) to (6) of this section and section 23.

(4) The tax payable under this section must be calculated in accordance with the following formula:

Tax = lease price x rate x (BC usage ÷ total usage)
where
lease price  =  lease price of the tangible personal property;
rate  =  the rate in section 20 (1) on the date the lease price for the applicable rental period is paid;
BC usage  =  the applicable meaning established under subsection (5);
total usage  =  the applicable meaning established under subsection (5).

(5) The following apply for the purposes of subsection (4):

(a) in the case of an aircraft used

(i)  interprovincially or internationally for commercial purposes, and

(ii)  in flights originating or terminating in British Columbia or connecting 2 or more points in British Columbia,

  BC usage  =  the number of hours the aircraft will fly in a rental period in the airspace over British Columbia in the flights referred to in subparagraph (ii);
  total usage  =  the total number of hours the aircraft will fly in that rental period;

(b) in the case of a vessel used in interprovincial or international trade for the commercial carriage of passengers or goods,

  BC usage  =  the distance the vessel will travel in the waters of British Columbia in a rental period;
  total usage  =  the total distance the vessel will travel in that rental period;

(c) in the case of any railway rolling stock used interprovincially or internationally,

  BC usage  =  the distance the railway rolling stock will travel in British Columbia in a rental period;
  total usage  =  the total distance the railway rolling stock will travel in that rental period;

(d) in the case of any conveyance used in interprovincial or international trade for the commercial carriage of passengers or goods, other than an aircraft, a vessel or any railway rolling stock,

  BC usage  =  the distance the conveyance will travel in British Columbia in a rental period;
  total usage  =  the total distance the conveyance will travel in that rental period;

(e) in the case of any other tangible personal property,

  BC usage  =  the number of hours the tangible personal property is in British Columbia in a rental period;
  total usage  =  the total number of hours in that rental period.

(6) Section 13 (7) applies for the purpose of calculating the tax payable under this section in respect of an aircraft, vessel, any railway rolling stock or other conveyance, and section 13 (8) applies in respect of that tax.

Transition — application of section 21

21.01  (1) Tax is payable by a lessee under section 21 (3) in respect of leased property

(a) if, before May 1, 2010, the consideration for the leased property becomes due or is paid without having become due,

(b) if the rental period under the lease begins before July 1, 2010 and ends before July 31, 2010,

(c) if the rental period under the lease begins before July 1, 2010 and ends on or after July 31, 2010, or

(d) if

(i)  before May 1, 2010, only a portion of the consideration for the leased property becomes due or is paid without having become due, and

(ii)  the rental period under the lease begins on or after July 1, 2010.

(2) Tax is not payable by a lessee under section 21 (3) in respect of leased property if

(a) all of the consideration for the leased property becomes due on or after May 1, 2010,

(b) none of the consideration for the leased property is paid before May 1, 2010, and

(c) the rental period under the lease begins on or after July 1, 2010.

(3) If tax is payable under section 21 (3) by reason only of subsection (1) (c) of this section, for the purpose of calculating the tax payable under section 21 (3), the lease price of the leased property is deemed to be the amount equal to the lease price of the leased property less that portion of the consideration for the leased property that

(a) is not paid before May 1, 2010,

(b) becomes due on or after May 1, 2010, and

(c) is attributable to the portion of the rental period that is on or after July 1, 2010.

(4) If tax is payable under section 21 (3) by reason of subsection (1) (d) of this section, for the purpose of calculating the tax payable under section 21 (3), the lease price of the leased property is deemed to be the amount equal to the lease price of the leased property less that portion of the consideration for the leased property that is not paid before May 1, 2010 and becomes due on or after May 1, 2010.

Repealed

21.1  [Repealed 2010-5-112.]

Tax if sale and lease-back of conveyance

22  (1) This section applies to the lessee of a conveyance described in section 13 (1) (c) or (d) who

(a) became lessee by selling the conveyance to the lessor under a sale and immediate lease-back arrangement, and

(b) had, before the sale to the lessor, paid as purchaser of the conveyance the tax applicable under Division 1 of this Part.

(2) A lessee referred to in subsection (1) must pay to the government, in respect of a rental period of the lease, tax in accordance with subsections (3) to (5) and sections 23 and 24, if the ratio of

(a) the distance of travel by the conveyance in British Columbia or in the waters of British Columbia during the rental period

to

(b) the total distance of travel by the conveyance during that period

exceeds the highest ratio of distances, as adjusted under section 13 (8) if applicable, used to determine the tax payable by the lessee under Division 1 of this Part.

(3) Tax payable under subsection (2) must be calculated in accordance with the following formula:

Tax = lease price x rate x (lease ratio – purchase ratio)
where
lease price  =  the payment of the lease price payable for the rental period;
rate  =  the rate in section 20 (1) on the date the lease price for the rental period is payable;
lease ratio  =  the ratio of the distance of travel by the conveyance in British Columbia, or in the waters of British Columbia, during the rental period to the total distance of travel by the conveyance during that period;
purchase ratio  =  the highest ratio of distances, as adjusted under section 13 (8) if applicable, used to determine the tax payable by the lessee under Division 1 of this Part.

(4) For the purpose of calculations under subsections (2) and (3), the distances of travel during a rental period are whichever of the following is applicable:

(a) if the lease price for a rental period is payable at the end of or after the end of the rental period, the actual distances travelled;

(b) in any other case, an estimate made in accordance with section 13 (7) of the distances to be travelled.

(5) Section 13 (8) applies in respect of tax payable under subsection (2).

Transition — application of section 22

22.01  (1) Tax is payable by a lessee under section 22 in respect of leased property

(a) if, before May 1, 2010, the consideration for the leased property becomes due or is paid without having become due,

(b) if the rental period under the lease begins before July 1, 2010 and ends before July 31, 2010,

(c) if the rental period under the lease begins before July 1, 2010 and ends on or after July 31, 2010, or

(d) if

(i)  before May 1, 2010, only a portion of the consideration for the leased property becomes due or is paid without having become due, and

(ii)  the rental period under the lease begins on or after July 1, 2010.

(2) Tax is not payable by a lessee under section 22 in respect of leased property if

(a) all of the consideration for the leased property becomes due on or after May 1, 2010,

(b) none of the consideration for the leased property is paid before May 1, 2010, and

(c) the rental period under the lease begins on or after July 1, 2010.

(3) If tax is payable under section 22 by reason only of subsection (1) (c) of this section, for the purpose of calculating the tax payable under section 22, the lease price of the leased property is deemed to be the amount equal to the lease price of the leased property less that portion of the consideration for the leased property that

(a) is not paid before May 1, 2010,

(b) becomes due on or after May 1, 2010, and

(c) is attributable to the portion of the rental period that is on or after July 1, 2010.

(4) If tax is payable under section 22 by reason of subsection (1) (d) of this section, for the purpose of calculating the tax payable under section 22, the lease price of the leased property is deemed to be the amount equal to the lease price of the leased property less that portion of the consideration for the leased property that is not paid before May 1, 2010 and becomes due on or after May 1, 2010.

Repealed

22.1  [Repealed 2010-5-114.]

Tax must be calculated separately for each rental period

23  Tax imposed under sections 20 to 22 must be calculated separately for each payment of the lease price payable for each rental period of the lease.

When tax must be paid

24  (1) Subject to subsection (2), tax imposed under sections 20 to 22 must be paid by the earlier of

(a) the time that the lease price is paid, and

(b) the date on which the lease price is payable.

(2) If more tax is required to be paid when tax calculated under section 21 (4) is adjusted in accordance with section 13 (8), the additional tax is payable within 23 days after the date the tax is adjusted.

Tax if balance of lease price becomes due

25  (1) If, before July 1, 2010, a lessee breaches a lease that provides for

(a) the lease of tangible personal property, and

(b) the payment of the whole of the outstanding balance of the lease price on breach of the lease,

the lessee must pay to the government, at the time the payment referred to in paragraph (b) comes due, a tax at the rate of 7% of the amount of the outstanding balance of the lease price.

(2) Despite sections 24, 93 and 96, the lessor must collect the tax imposed under subsection (1) at the time the payment referred to in subsection (1) (b) comes due.

(3) If a lessee does not pay the tax as required under subsection (1) and the lessor receives an amount in respect of the payment referred to in subsection (1) (b) in a judgment, settlement or by any other way, the lessor must remit the lesser of

(a) 7% of the amount received, and

(b) the amount of the tax that would have been payable under sections 20 to 22 if the lease had continued to the end of its term.

Repealed

26  [Repealed 2010-5-117.]

Repealed

27  [Repealed 2004-9-7.]

Division 3 — Tax in relation to Multijurisdictional Vehicles

Definitions

28  In this Division:

"calculation year" means the period beginning on July 1 and ending on the following June 30;

"fleet licence year" means, in respect of vehicles licensed as part of a fleet, the period beginning on a fleet licensing date for the fleet vehicles and ending on the day before the anniversary of that licensing date;

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

"licensing date" means,

(a) in respect of a vehicle that is not licensed as part of a fleet, the date on which the vehicle is licensed, or

(b) in respect of a vehicle that is licensed as part of a fleet, the fleet licensing date;

"travel ratio" means, in respect of a vehicle, the travel ratio determined in accordance with section 29 (4) or (5);

"vehicle" does not include a trailer;

Tax if multijurisdictional vehicle licensed

29  (1) to (3) [Repealed 2010-5-119.]

(4) The travel ratio for a vehicle that is not licensed as part of a fleet is as follows:

(a) if the vehicle was not a multijurisdictional vehicle for at least 90 days during the calculation year preceding the vehicle's licensing date, the ratio of

(i)  a reasonable estimate of the distance that the vehicle will travel in British Columbia during the vehicle licence year, and

(ii)  a reasonable estimate of the total distance that the vehicle will travel in the vehicle licence year;

(b) if the vehicle was a multijurisdictional vehicle for at least 90 days during the calculation year preceding the vehicle's licensing date, the ratio of

(i)  the distance travelled in British Columbia by that vehicle in the period beginning on the date in that calculation year that it became a multijurisdictional vehicle or on the first day of the calculation year, whichever is later, and ending on the last day of the calculation year, and

(ii)  the total distance travelled by that vehicle during that same period.

(5) The travel ratio for a vehicle that is licensed as part of a fleet is as follows:

(a) if none of the vehicles in the fleet, while part of that fleet, were multijurisdictional vehicles for at least 90 days during the calculation year preceding the fleet licensing date, the ratio of

(i)  a reasonable estimate of the distance that the vehicles in the fleet will travel in British Columbia during the fleet licence year, and

(ii)  a reasonable estimate of the total distance that the vehicles in the fleet will travel in the fleet licence year;

(b) if one or more of the vehicles in the fleet, while part of that fleet, were multijurisdictional vehicles for at least 90 days during the calculation year preceding the fleet licensing date, the ratio of

(i)  the distance travelled in British Columbia by the vehicles of the fleet in the period beginning on the first date in that calculation year that a vehicle in the fleet became a multijurisdictional vehicle or on the first day of the calculation year, whichever is later, and ending on the last day of the calculation year, and

(ii)  the total distance travelled by the vehicles of the fleet during that same period.

(6) If the actual distance a vehicle referred to in subsection (4) (a) travels in British Columbia during a vehicle licence year and the actual total distance the vehicle travels during that vehicle licence year results in a different travel ratio from the ratio estimated under that subsection, the tax payable under this section in relation to the vehicle must be adjusted accordingly at the end of the vehicle licence year and sections 80, 81, 82 (1), 83 to 88, 115 and 117 apply.

(7) If the actual distance the vehicles in a fleet of vehicles referred to in subsection (5) (a) travel in British Columbia during a fleet licence year and the actual total distance the vehicles of the fleet travel during that fleet licence year results in a different travel ratio from the ratio estimated under that subsection, the tax payable under this section in relation to a vehicle of that fleet must be adjusted accordingly at the end of the fleet licence year and sections 80, 81, 82 (1), 83 to 88, 115 and 117 apply.

Repealed

30-31  [Repealed 2010-5-119.]

Tax if fleet licensing changed

32  (1) If a vehicle that was licensed by a person as part of a fleet is, before the end of the fleet licensing year applicable to that fleet and before July 1, 2010, licensed by that person as part of a different fleet,

(a) the person must pay to the government the tax imposed by section 29 (1) in respect of the vehicle's new fleet licence year, and

(b) on application and on receipt of evidence satisfactory to the commissioner, the commissioner must provide to the person a refund of a portion of the tax previously paid in respect of the vehicle under this Division.

(2) A refund under subsection (1) must be calculated and provided in accordance with the regulations.

(3) The commissioner may, in accordance with the regulations,

(a) pay a refund under subsection (1) to the person out of the consolidated revenue fund, or

(b) credit the amount of the refund against the amount of any tax that the person is required to pay under this Division.

Repealed

33  [Repealed 2010-5-121.]

Refund or credit for trade-in vehicles

33.1  (1) In this section, "trade-in vehicle" means a multijurisdictional vehicle on which tax has been paid under this Division and that, before the expiration of its current vehicle licence year and before July 1, 2010, is accepted at the time of sale by the seller on account of the purchase price of another multijurisdictional vehicle in respect of which tax is payable under section 29.

(2) The commissioner may, in accordance with the regulations, provide a refund of a portion of the tax paid on a trade-in vehicle, and the refund must, subject to subsection (3), correspond to the tax paid for the balance of the current vehicle licence year remaining after the trade-in vehicle has been traded.

(3) A refund under subsection (2) must be calculated and provided in accordance with the regulations and may be paid out of the consolidated revenue fund.

Refund for replacement vehicles

33.2  (1) In this section, "replacement vehicle" means a vehicle that is leased to be used as a replacement for a multijurisdictional vehicle that is being repaired and is therefore unavailable for use during part of its vehicle licence year.

(2) Subject to subsection (3), if a person has paid tax under this Division or under section 20 (1) on a replacement vehicle, the commissioner may provide a refund of that tax to that person if

(a) tax has been paid under this Division on the multijurisdictional vehicle being repaired, and

(b) the replacement vehicle is used only

(i)  in accordance with the terms of the licence that was issued for the multijurisdictional vehicle being repaired, and

(ii)  for the purposes for which that multijurisdictional vehicle would be used were it not being repaired.

(3) Any refund under this section is, if the refund is in respect of tax paid under section 20 (1), limited to the tax paid on lease payments for the replacement vehicle in respect of rental periods, or portions of rental periods, that are wholly within

(a) the period during which the multijurisdictional vehicle is being repaired, and

(b) the vehicle licence year of the multijurisdictional vehicle.

(4) Any refund under this section is, if the refund is in respect of tax paid under this Division, limited to the tax paid that is attributable to the portion of the replacement vehicle's vehicle licence year that is wholly within

(a) the period during which the multijurisdictional vehicle is being repaired, and

(b) the licence year of the multijurisdictional vehicle.

Refund for short term rental vehicles

33.3  (1) This section applies to a short term rental vehicle that

(a) is a multijurisdictional vehicle because it is licensed to travel in British Columbia under a licence to which a prorating agreement under section 10 of the Commercial Transport Act applies, and

(b) during a vehicle licence year is leased primarily for the purpose of the lessees transporting goods.

(2) On application and on receipt of evidence satisfactory to the commissioner, the commissioner may provide a refund of the tax paid under this Division on the short term rental vehicle in respect of a licence year if tax was collected as required under section 20 of this Act or section 165 (2) of the Excise Tax Act (Canada) on its leasing during the licence year.

(3) A refund under subsection (2) may be paid out of the consolidated revenue fund.

Liability of other persons

34  If tax is payable by a person under this Division in respect of a vehicle for a vehicle licence year, any other person who had management of or the right to determine the utilization of the vehicle while it was in British Columbia during the vehicle licence year is jointly and severally liable with any other person liable for that tax.

How tax is to be calculated

35  The tax imposed by this Division must be computed to the nearest cent, with 1/2 cent counted as 1 cent.

Division 4 — Services Related to Purchase

Tax if contract for property conversion related to purchase

36  (1) A purchaser who

(a) acquires tangible personal property

(i)  from another person, or

(ii)  through another person acting as agent of the purchaser, and

(b) within 6 months before or after acquiring the tangible personal property, enters into a contract with the other person or an associate of the person under which the original tangible personal property referred to in paragraph (a) is processed, fabricated or manufactured into, or attached to or incorporated into, other tangible personal property by that other person or associate,

must pay to the government tax at the rate of 7% of all amounts payable under the contract for or in relation to the resulting tangible personal property.

(2) Tax payable under subsection (1) is in addition to tax payable on the original tangible personal property.

(3) Tax is not payable under subsection (1) if the purchaser satisfies the commissioner that, at the time the tangible personal property referred to in subsection (1) (a) was acquired, the purchaser did not have an intention to enter into the contract referred to in subsection (1) (b).

(4) Tax is not payable under this section on that portion of the amounts payable under the contract for tangible personal property on which tax is otherwise payable by the purchaser under this Act.

(5) Tax under this section must be paid, in respect of each amount payable under the contract, by the date on which the amount is paid or payable, whichever is earlier.

Tax if contract for modification of purchased property

37  (1) In cases to which section 36 (1) does not apply, if a purchaser of tangible personal property enters into an agreement with the seller of the property or an associate of the seller

(a) that is

(i)  part of the contract to acquire the tangible personal property, or

(ii)  a separate contract entered into within 2 days before or after entering into the contract to acquire the tangible personal property, and

(b) under which the seller or an associate of the seller is to modify or process the tangible personal property,

the purchaser must pay to the government tax calculated in accordance with subsection (2).

(2) The tax payable under subsection (1) must be calculated as follows:

(a) if the tangible personal property referred to in subsection (1) is not a passenger vehicle, at the rate of 7% of the contract amount;

(b) if the tangible personal property referred to in subsection (1) is a passenger vehicle, at the applicable rate as follows:

(i)  7% of the contract amount, if the purchase price of the passenger vehicle is less than $55 000;

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

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

(iv)  10% of the contract amount, if the purchase price of the passenger vehicle is $57 000 or more.

(3) For the purposes of subsection (2), "contract amount" means the total of all amounts payable under the contract referred to in subsection (1) for or in relation to the modification or processing referred to in subsection (1) (b).

(4) Tax is not payable under this section on that portion of the amounts payable under the contract for tangible personal property on which tax is otherwise payable by the purchaser under this Act.

(5) Tax under this section must be paid, in respect of each amount payable under the contract, by the date on which the amount is paid or payable, whichever is earlier.

Transition — application of sections 36 and 37

37.1  (1) In this section:

"contract amount",

(a) in relation to section 36, means the total of all amounts payable under the contract referred to in section 36 (1) (b) for or in relation to the resulting tangible personal property, and

(b) in relation to section 37, has the same meaning as in section 37 (3);

"services",

(a) in relation to section 36, means the services described in section 36 (1) (b) that are provided under the contract referred to in that provision, and

(b) in relation to section 37, means the services described in section 37 (1) (b) that are provided under the contract referred to in section 37 (1) (a) (i) or (ii).

(2) Tax is payable under section 36 or 37 in respect of services

(a) if, before May 1, 2010, the consideration for the services becomes due or is paid without having become due,

(b) if the services are substantially provided before July 1, 2010,

(c) if the services are partially provided before July 1, 2010, or

(d) if

(i)  before May 1, 2010, only a portion of the consideration for the services becomes due or is paid without having become due, and

(ii)  the services are provided on or after July 1, 2010.

(3) Tax is not payable under section 36 or 37 in respect of services if

(a) all of the consideration for the services becomes due on or after May 1, 2010,

(b) none of the consideration for the services is paid before May 1, 2010, and

(c) the services are provided on or after July 1, 2010.

(4) If tax is payable under section 36 or 37 by reason only of subsection (2) (c) of this section, for the purpose of calculating the tax payable under section 36 or 37, the contract amount is deemed to be the amount equal to the contract amount for the services less that portion of the consideration for the services that

(a) is not paid before May 1, 2010,

(b) becomes due on or after May 1, 2010, and

(c) is attributable to the portion of the services provided on or after July 1, 2010.

(5) If tax is payable under section 36 or 37 by reason of subsection (2) (d) of this section, for the purpose of calculating the tax payable under section 36 or 37, the contract amount is deemed to be the amount equal to the contract amount for the services less that portion of the consideration for the services that is not paid before May 1, 2010 and becomes due on or after May 1, 2010.

Tax exempt property

38  (1) Sections 36 (1) and 37 (1) do not apply if the tangible personal property in its resulting form after completion of the contract referred to in the applicable section would be exempt from tax under this Act.

(2) [Repealed 2010-5-125.]

Application of other provisions of Act

39  For the purposes of this Act, other than Division 1 of this Part,

(a) the matters for which an amount referred to in section 36 or 37 is payable are deemed to be a sale of tangible personal property at a retail sale,

(b) an amount referred to in paragraph (a) of this section is deemed to be a purchase price, and

(c) the person with whom the purchaser enters into a contract referred to in section 36 or 37 is deemed to be a vendor in relation to the matters referred to in paragraph (a).

Division 5 — Taxable Services

Tax on the provision of taxable service in British Columbia

40  (1) A tax on the provision of a taxable service in British Columbia must be paid to the government by a purchaser at the rate of 7% of the purchase price of the taxable service.

(2) The tax payable under subsection (1) must be paid at the time the purchase price of the taxable service is paid or by the date on which the purchase price is payable, whichever is earlier.

Transition — application of section 40

40.1  (1) Tax is payable under section 40 in respect of a taxable service

(a) if, before May 1, 2010, the consideration for the taxable service becomes due or is paid without having become due,

(b) if the taxable service is substantially provided before July 1, 2010,

(c) if the taxable service is partially provided before July 1, 2010, or

(d) if

(i)  before May 1, 2010, only a portion of the consideration for the taxable service becomes due or is paid without having become due, and

(ii)  the taxable service is provided on or after July 1, 2010.

(2) Tax is not payable under section 40 in respect of a taxable service if

(a) all of the consideration for the taxable service becomes due on or after May 1, 2010,

(b) none of the consideration for the taxable service is paid before May 1, 2010, and

(c) the taxable service is provided on or after July 1, 2010.

(3) If tax is payable under section 40 by reason only of subsection (1) (c) of this section, for the purpose of calculating the tax payable under section 40, the purchase price of the taxable service is deemed to be the amount equal to the purchase price of the taxable service less that portion of the consideration for the taxable service that

(a) is not paid before May 1, 2010,

(b) becomes due on or after May 1, 2010, and

(c) is attributable to the portion of the taxable service provided on or after July 1, 2010.

(4) If tax is payable under section 40 by reason of subsection (1) (d) of this section, for the purpose of calculating the tax payable under section 40, the purchase price of the taxable service is deemed to be the amount equal to the purchase price of the taxable service less that portion of the consideration for the taxable service that is not paid before May 1, 2010 and becomes due on or after May 1, 2010.

Tax if service provided to British Columbia resident

41  (1) This section applies to a person who

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

(b) takes or sends tangible personal property out of British Columbia

(i)  primarily for the purpose of having taxable service provided in respect of the property, and

(ii)  has taxable service provided in respect of the property, and

(c) brings or sends into British Columbia or receives delivery in British Columbia of the property referred to in paragraph (b) for use or consumption

(i)  by the person,

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

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

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

(2) The person must

(a) immediately report the matter in writing to the commissioner,

(b) supply to the commissioner all pertinent information required by the commissioner in respect of the taxable service provided in relation to the property, and

(c) on the date that the tangible personal property is returned to British Columbia as referred to in subsection (1) (c), pay to the government a tax in respect of the taxable service, with the tax calculated as 7% of the purchase price of the taxable service.

(3) For the purposes of subsection (1), a person is deemed to be carrying on business in British Columbia if an employee or other representative of that person carries on activities in British Columbia on that person's behalf for the purpose of promoting the sale or use of that person's products or services.

Transition — application of section 41

41.1  (1) Tax is payable under section 41 in respect of a taxable service if, before July 1, 2010, the taxable service

(a) is substantially provided, or

(b) is partially provided but not substantially provided.

(2) Tax is not payable under 41 in respect of a taxable service if the taxable service is provided on or after July 1, 2010.

(3) If tax is payable under section 41 by reason of subsection (1) (b) of this section, for the purpose of calculating the tax payable under section 41, the purchase price of the taxable service is deemed to be the amount equal to the purchase price of the taxable service less that portion of the purchase price of the taxable service that is attributable to the portion of the taxable service provided on or after July 1, 2010.

Exceptions from tax

42  (1) A person who takes or sends tangible personal property out of British Columbia primarily for the purpose of using that tangible personal property outside British Columbia for a period of time is exempt from tax under this Division in respect of any taxable service provided in respect of the tangible personal property while it is outside British Columbia during that period.

(2) Subject to the terms and conditions the Lieutenant Governor in Council specifies in the regulations, no tax is payable under section 40 (1) or 41 (2) in respect of

(a) a prescribed taxable service, or

(b) a taxable service purchased by a person who is a member of a prescribed class of persons.

Repealed

43  [Repealed 2007-31-39.]

How tax is to be calculated

44  (1) The tax imposed by this Act must be

(a) calculated separately on every purchase of a taxable service, and

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

(2) If several taxable services are purchased on the same occasion or as part of one transaction, the total of the purchases is deemed to be one purchase for the purposes of this Act.

Application of other provisions of Act

45  For the purposes of applying the other provisions of this Act in relation to a tax imposed by this Division,

(a) the receiving of a taxable service for consideration is deemed to be a purchase, and

(b) the provision of a taxable service for consideration is deemed to be a sale of tangible personal property at a retail sale,

except that Division 1 of this Part does not apply to a purchase of a taxable service.

Division 6 — Legal Services

Tax if legal services provided in British Columbia

46  (1) If the purchaser or recipient of legal services provided in British Columbia resides, ordinarily resides or carries on business in British Columbia, a tax on the provision of the legal services must be paid to the government by the purchaser at the rate of 7% of the purchase price.

(2) If neither the purchaser nor the recipient of legal services provided in British Columbia resides, ordinarily resides or carries on business in British Columbia, a tax on the provision of the legal services must be paid to the government by the purchaser at the rate of 7% of the purchase price if the legal services are in relation to one or more of the following:

(a) real property situated in British Columbia;

(b) tangible personal property, within the meaning of paragraph (a) of the definition of tangible personal property, that is ordinarily situated in British Columbia or that is to be delivered in British Columbia, or the contemplation of either of these;

(c) the ownership, possession or use in British Columbia of property other than that referred to in paragraphs (a) and (b), or the right to use such property in British Columbia, or the contemplation of any of these;

(d) a court or administrative proceeding in British Columbia or a possible such proceeding;

(e) the incorporation or contemplated incorporation of a corporation under the Business Corporations Act or the Society Act, or the registration or contemplated registration of a corporation as an extraprovincial company under the Business Corporations Act or as an extraprovincial society under the Society Act;

(f) any other matter that relates to British Columbia and is prescribed as being included for the purposes of this section.

Tax if legal services provided to British Columbia resident

47  (1) A person who

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

(b) is the purchaser of legal services provided outside British Columbia that relate to British Columbia

must pay a tax to the government in respect of the legal services, with the tax calculated as 7% of the purchase price of the legal services.

(2) For the purposes of subsection (1), legal services relate to British Columbia if they relate to any of the following:

(a) a matter referred to in section 46 (2) (a) to (f);

(b) a matter that involves the interpretation or application of an enactment as defined in the Interpretation Act or a former or proposed such enactment;

(c) a matter that involves the interpretation or application of an enactment, or a former or proposed enactment, of a jurisdiction other than British Columbia, if the matter is in relation to

(i)  a physical or legal presence in British Columbia or a contemplated such presence,

(ii)  an activity in British Columbia or a contemplated such activity, or

(iii)  a transaction in British Columbia or a contemplated such transaction;

(d) a matter that involves the analysis or application of any law other than that referred to in paragraphs (b) and (c), if the matter is in relation to

(i)  a physical or legal presence in British Columbia or a contemplated such presence,

(ii)  an activity in British Columbia or a contemplated such activity, or

(iii)  a transaction in British Columbia or a contemplated such transaction;

(e) a contract or covenant, or a contemplated contract or covenant, that is in relation to

(i)  a physical or legal presence in British Columbia or a contemplated such presence,

(ii)  an activity in British Columbia or a contemplated such activity, or

(iii)  a transaction in British Columbia or a contemplated such transaction.

(3) A person referred to in subsection (1) is exempt from tax under that subsection in relation to that portion of the purchase price which is for legal services that relate to a jurisdiction other than British Columbia if

(a) the person resides, ordinarily resides or carries on business outside British Columbia as well as in British Columbia, and

(b) part of the legal services referred to in subsection (1) relates to a jurisdiction other than British Columbia in the same manner as legal services relate to British Columbia within the meaning of subsection (2).

(4) For the purposes of subsection (3), the person must

(a) make a reasonable estimate, subject to the regulations, of that portion of the purchase price which relates to legal services referred to in subsection (3) (b),

(b) make and retain a record of the estimate and the basis on which it is made, and

(c) if the person who provided the legal services is required by this Act to collect the tax payable, provide a copy of the record to that person.

Transition — application of sections 46 and 47

47.1  (1) Tax is payable under section 46 or 47 in respect of legal services

(a) if, before May 1, 2010, the consideration for the legal services becomes due or is paid without having become due,

(b) if the legal services are substantially provided before July 1, 2010,

(c) if the legal services are partially provided before July 1, 2010, or

(d) if

(i)  before May 1, 2010, only a portion of the consideration for the legal services becomes due or is paid without having become due, and

(ii)  the legal services are provided on or after July 1, 2010.

(2) Tax is not payable under section 46 or 47 in respect of legal services if

(a) all of the consideration for the legal services becomes due on or after May 1, 2010,

(b) none of the consideration for the legal services is paid before May 1, 2010, and

(c) the legal services are provided on or after July 1, 2010.

(3) If tax is payable under section 46 or 47 by reason only of subsection (1) (c) of this section, for the purpose of calculating the tax payable under section 46 or 47, the purchase price of the legal services is deemed to be the amount equal to the purchase price of the legal services less that portion of the consideration for the legal services that

(a) is not paid before May 1, 2010,

(b) becomes due on or after May 1, 2010, and

(c) is attributable to the portion of the legal services provided on or after July 1, 2010.

(4) If tax is payable under section 46 or 47 by reason of subsection (1) (d) of this section, for the purpose of calculating the tax payable under section 46 or 47, the purchase price of the legal services is deemed to be the amount equal to the purchase price of the legal services less that portion of the consideration for the legal services that is not paid before May 1, 2010 and becomes due on or after May 1, 2010.

Exception for legal aid services

48  No tax is payable under this Division in relation to legal services provided to an individual to the extent that the purchase price for the services is paid by the Legal Services Society, or by a funded agency within the meaning of the Legal Services Society Act, for the purposes of section 9 of that Act.

When tax must be paid

49  (1) Tax under this Division must be paid by the date on which the purchase price of the legal services is paid or payable, whichever is earlier.

(2) As an exception to subsection (1), if the person providing the legal services is not obliged to and does not collect the tax under this Division, the purchaser must pay the tax by delivering it to the commissioner by the 23rd day of the month following the month in which the tax is otherwise required to be paid by subsection (1).

(3) The purchase price for legal services is deemed to be payable when it is billed or otherwise charged to the purchaser.

Liability of other persons

50  If there is more than one purchaser of legal services subject to tax under this Division, each purchaser is jointly and severally liable for the tax.

General matters

51  (1) For the purposes of this Division, a person is deemed to be carrying on business in British Columbia if an employee or other representative of the person carries on activities in British Columbia on that person's behalf for the purpose of promoting the sale or use of the person's products or services.

(2) If the person providing legal services does so as a partner in a partnership or as an employee of an individual, partnership or corporation, a reference in this Act to that person is deemed to be a reference to the individual, partnership or corporation.

Application of other provisions of Act

52  For the purposes of applying the other provisions of this Act in relation to a tax imposed by this Division,

(a) the receiving of legal services for consideration is deemed to be a purchase, and

(b) the provision of legal services for consideration is deemed to be a sale of tangible personal property at a retail sale,

except that Division 1 of this Part does not apply to a purchase of legal services.

Division 7 — Telecommunication Services

Tax on provision of telecommunication services

53  Unless section 54 (1) or 56 applies, a tax on the provision of a telecommunication service must be paid to the government by a purchaser at the rate of 7% of the purchase price of the telecommunication service.

Tax on provision of dedicated telecommunication services

54  (1) Unless section 56 applies, a tax on the provision of a dedicated telecommunication service in British Columbia must be paid to the government by a purchaser in accordance with subsections (2) and (3).

(2) The tax payable under subsection (1) must be calculated in respect of a purchase price in accordance with the following formula:

Tax = purchase price x rate x (BC distance ÷ total distance)
where
purchase price  =  the purchase price of the dedicated telecommunication service;
rate  =  the rate of tax that is in effect under section 53 on the date that the purchase price for the dedicated telecommunication service is payable;
BC distance  =  the portion of the distances comprising the total distance that is within British Columbia;
total distance  =  (a)  if the dedicated telecommunication system does not include a transmitter that is a satellite, the total of the distances, measured in a direct line, between transmitters connected to the system, with the distance between any 2 transmitters connected to the system included only once in the calculation of total distance, and
    (b)  if the dedicated telecommunication system does include a transmitter that is a satellite, the total of the distances, measured in a direct line, between transmitters that are connected to the system but that are not satellites, with the distance between any 2 of these transmitters included only once in the calculation of total distance.

(3) If the purchase price for a telecommunication service is only partly payable for a dedicated telecommunication service, the commissioner may determine the portion of the purchase price that is attributable to that dedicated telecommunication service.

Transition — application of sections 53 and 54

54.1  (1) Tax is payable under section 53 or 54 in respect of a telecommunication service

(a) if, before May 1, 2010, the consideration for the telecommunication service becomes due or is paid without having become due,

(b) if the telecommunication service is substantially provided before July 1, 2010,

(c) if the telecommunication service is partially provided before July 1, 2010, or

(d) if

(i)  before May 1, 2010, only a portion of the consideration for the telecommunication service becomes due or is paid without having become due, and

(ii)  the telecommunication service is provided on or after July 1, 2010.

(2) Tax is not payable under section 53 or 54 in respect of a telecommunication service if

(a) all of the consideration for the telecommunication service becomes due on or after May 1, 2010,

(b) none of the consideration for the telecommunication service is paid before May 1, 2010, and

(c) the telecommunication service is provided on or after July 1, 2010.

(3) If tax is payable under section 53 or 54 by reason only of subsection (1) (c) of this section, for the purpose of calculating the tax payable under section 53 or 54, the purchase price of the telecommunication service is deemed to be the amount equal to the purchase price of the telecommunication service less that portion of the consideration for the telecommunication service that

(a) is not paid before May 1, 2010,

(b) becomes due on or after May 1, 2010, and

(c) is attributable to the portion of the telecommunication service provided on or after July 1, 2010.

(4) If tax is payable under section 53 or 54 by reason of subsection (1) (d) of this section, for the purpose of calculating the tax payable under section 53 or 54, the purchase price of the telecommunication service is deemed to be the amount equal to the purchase price of the telecommunication service less that portion of the consideration for the telecommunication service that is not paid before May 1, 2010 and becomes due on or after May 1, 2010.

Calculation if telecommunication only partly through dedicated system

55  (1) This section applies if

(a) a person purchases a telecommunication service for the purposes of sending from British Columbia or receiving in British Columbia a telecommunication, and

(b) the telecommunication is effected in part through a dedicated telecommunication system and in part through a telecommunication system that is not a dedicated telecommunication system.

(2) The tax payable by the purchaser on the provision of the telecommunication service referred to in subsection (1) must be calculated as follows:

(a) the tax payable on the portion of the purchase price that is attributable to the dedicated telecommunication system must be calculated in accordance with section 54 (2) and (3);

(b) the tax payable on the portion of the purchase price that is attributable to a telecommunication system that is not a dedicated telecommunication system must be calculated in accordance with section 53.

Exceptions from tax

56  Subject to the terms and conditions the Lieutenant Governor in Council specifies in the regulations, no tax is payable under this Division in respect of the following:

(a) telecommunication services in the form of telephone services that qualify for a residential rate, other than long distance telephone services;

(b) telecommunication services in the form of cable television services, other than cable television services described as

(i)  pay television,

(ii)  specialty service channels, or

(iii)  non-programming channels

for which there is a charge in addition to the basic cable television charge;

(c) a prescribed telecommunication service;

(d) a telecommunication service purchased by a person who is a member of a prescribed class of persons.

When tax must be paid

57  The tax payable under this Division must be paid at the earlier of

(a) the time that the purchase price of the telecommunication service is paid, and

(b) the time that the purchase price of the telecommunication service is payable.

Repealed

58  [Repealed 2007-31-39.]

How tax is to be calculated

59  (1) The tax imposed by this Act must be

(a) calculated separately on every purchase of a telecommunication service, and

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

(2) If several telecommunication services are purchased on the same occasion or as part of one transaction, the total of the purchases is deemed to be one purchase for the purposes of this Act.

Application of other provisions of Act

60  For the purposes of applying the other provisions of this Act in relation to a tax imposed by this Division,

(a) the receiving of a telecommunication service for consideration is deemed to be a purchase, and

(b) the provision of a telecommunication service for consideration is deemed to be a sale of tangible personal property at a retail sale,

except that Division 1 of this Part does not apply to a purchase of a telecommunication service.

Division 8 — Tax in relation to Parking Rights

Parking tax

61  (1) A purchaser of a parking right in relation to a parking site that is within the South Coast British Columbia transportation service region must, unless subsection (5) applies, pay to the South Coast British Columbia Transportation Authority a tax

(a) subject to paragraph (b), at the rate of 7% of the purchase price of the parking right, or

(b) if another rate, not exceeding 21% of the purchase price of the parking right, has been set under section 30.1 of the South Coast British Columbia Transportation Authority Act and has taken effect in accordance with that section, at that other rate.

(2) to (4) [Repealed 2010-18-70.]

(5) Subject to the terms and conditions the Lieutenant Governor in Council specifies in the regulations, no tax is payable under subsection (1) in respect of a parking right purchased

(a) for residential parking as that term is defined in the regulations,

(b) for parking at a prescribed parking site, or

(c) by a person who is a member of a prescribed class of persons.

Transition — parking tax

61.1  (1) Tax is payable by a purchaser under section 61 in respect of a parking right if, before July 1, 2010,

(a) the purchase price of the parking right becomes due or is paid without having become due, or

(b) only a portion of the purchase price of the parking right becomes due or is paid without having become due.

(2) Tax is not payable by a purchaser under section 61 in respect of a parking right if the purchase price of the parking right

(a) becomes due on or after July 1, 2010, and

(b) is not paid before July 1, 2010.

(3) If tax is payable under section 61 by reason of subsection (1) (b) of this section, for the purpose of calculating the tax payable under section 61, the purchase price of the parking right is deemed to be the amount equal to the purchase price of the parking right less that portion of the purchase price of the parking right that is not paid before July 1, 2010 and becomes due on or after July 1, 2010.

When tax must be paid

62  The tax under section 61 (1) must be paid at the time the purchase price for the parking right is paid or by the date on which the purchase price is payable, whichever is earlier.

Repealed

63  [Repealed 2007-31-39.]

How tax is to be calculated

64  (1) The tax imposed by this Act must be

(a) calculated separately on every purchase of a parking right, and

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

(2) If several parking rights are purchased on the same occasion or as part of one transaction, the total of the purchases is deemed to be one purchase for the purposes of this Act.

Application of other provisions of Act

65  For the purposes of applying the other provisions of this Act in relation to a tax imposed by this Division,

(a) the receiving of a parking right for consideration is deemed to be a purchase, and

(b) the provision of a parking right for consideration is deemed to be a sale of tangible personal property at a retail sale,

except that Division 1 of this Part does not apply to a purchase of a parking right.

Tax collection

65.1  (1) The taxes payable to the South Coast British Columbia Transportation Authority under section 61 (1) and (2) that are remitted to the commissioner as required under this Act

(a) are received by the commissioner as agent of the South Coast British Columbia Transportation Authority, and

(b) subject to subsections (2) (b) and (3), must be remitted by the commissioner to the South Coast British Columbia Transportation Authority.

(2) The commissioner may

(a) charge the South Coast British Columbia Transportation Authority a fee to recover the additional costs to the government of

(i)  collecting and remitting the tax payable to the South Coast British Columbia Transportation Authority under section 61 (1) and (2), and

(ii)  providing refunds under section 61 (3).

(b) deduct the fee referred to in paragraph (a) of this subsection from the amount of tax received on behalf of the South Coast British Columbia Transportation Authority.

(3) The commissioner may deduct from the amount of tax collected on behalf of the South Coast British Columbia Transportation Authority any amounts that the commissioner or minister is required, under this Act or any other enactment or as a result of a judgment of a court, to refund to purchasers, vendors or lessors.

(4) Despite the Financial Administration Act, any taxes received by the commissioner under subsection (1) of this section must be paid into the consolidated revenue fund.

(5) Without an appropriation other than this subsection, the amount that the commissioner must remit to the South Coast British Columbia Transportation Authority under subsection (1) (b) must be paid out of the consolidated revenue fund.

(6) Section 27 (1) (a) of the Financial Administration Act does not apply to the appropriation under subsection (5) of this section.

(7) The amounts payable by the commissioner to the South Coast British Columbia Transportation Authority under this section may be based on the commissioner's estimates of the amounts referred to in subsections (1) to (3).

(8) The minister, on behalf of the government, may enter into a tax collection agreement with the South Coast British Columbia Transportation Authority with respect to the tax described in subsection (1) and the fee described in subsection (2).

Division 9 — Environmental Levies

Repealed

66-68  [Repealed 2010-5-131.]

Innovative Clean Energy Fund levy

68.01  (1) In this section:

"energy product" means

(a) electricity,

(b) natural gas,

(c) fuel oil,

(d) propane, and

(e) other tangible personal property prescribed by regulation as an energy product,

but does not include tangible personal property excluded by regulation;

"fuel oil" means any liquid fuel, by whatever name known or sold, containing any derivative of coal, petroleum or natural gas, but does not include propane or butane.

(2) Subject to subsections (6) and (6.1) and the regulations, a levy on the purchase price of energy products is payable in accordance with subsections (3) to (5).

(3) A purchaser of an energy product must pay to the government at the time of making the purchase a levy on the purchase price of the energy product at the applicable rate prescribed by regulation.

(4) If section 11 (1) applies to a person in relation to an energy product, the person must

(a) immediately report the matter in writing to the commissioner,

(b) supply to the commissioner all pertinent information required by the commissioner in respect of the energy product, and

(c) pay to the government, within 23 days after the last day of the month in which the energy product is brought or sent into, or is delivered in, British Columbia, a levy on the purchase price of the energy product at the applicable rate prescribed by regulation,

and for these purposes section 11 (2) and (2.1) applies.

(5) For certainty, subsections (3) and (4) apply in relation to all deliveries of energy products received on or after the date on which this section comes into force, including deliveries received under a contract entered into before that date.

(6) Fuel taxed under or exempted from tax under the Motor Fuel Tax Act is exempt from a levy under this section.

(6.1) Despite subsection (5) but subject to subsection (6.2), a levy on the purchase price of an energy product is not payable under subsection (3) if the energy product is purchased on or after July 1, 2010.

(6.2) For certainty, subsection (3) applies in relation to an energy product if

(a) the energy product is delivered before July 1, 2010, and

(b) the purchase price of the energy product is paid or payable on or after July 1, 2010.

(7) A levy under this section

(a) is additional to any tax under Division 1 of this Part in respect of that purchase, and

(b) for the purposes of the tax under Division 1 of this Part, is not to be considered as part of the purchase price.

(8) For the purposes of section 9.5 (2) (a) [Innovative Clean Energy Fund] of the Special Accounts Appropriation and Control Act, if requested by the commissioner or if required by the regulations, a vendor or a person referred to in section 93 (1.1) must report to the commissioner the amounts that were required under this section to be paid in relation to their sales of the energy product.

(9) If applicable,

(a) a person who has paid more than the prescribed maximum amount of the levy under this section within the prescribed period of time may, after the end of that period, apply to the commissioner for a refund of the amount paid in excess of that maximum amount, and

(b) on receipt of evidence satisfactory to the commissioner, the commissioner must refund that excess to the person out of the consolidated revenue fund.

Division 10

Repealed

68.1  [Repealed 2010-5-133.]

Division 11 — Improvements to Real Property

Tax on contracts for improvements to real property

68.2  (1) Subject to subsection (2), a contractor who, for the purposes of fulfilling a contract for the supply and installation of improvements to real property,

(a) either

(i)  acquires tangible personal property at a sale in British Columbia, or

(ii)  brings or sends into British Columbia, or receives delivery of in British Columbia, tangible personal property, and

(b) under the terms of the contract, uses the tangible personal property so that it ceases to be tangible personal property and becomes part of the real property

must pay to the government a tax at the rate of 7% of the purchase price of the tangible personal property.

(2) A contractor referred to in subsection (1) is not liable for the tax imposed under that subsection if there is

(a) an agreement between the contractor and the person with whom the contractor has entered into the contract that

(i)  specifically states that the person is liable for the tax, and

(ii)  sets out the value of the tangible personal property referred to in subsection (1) on which the tax will be applied, and

(b) written evidence of the agreement referred to in paragraph (a).

(3) If subsection (2) applies, the person referred to in subsection (2) must pay to the government a tax at the rate of 7% of the purchase price of the tangible personal property referred to in subsection (1).

(4) The tax payable under this section must be paid at the time the tangible personal property is appropriated for the contract referred to in subsection (1).

(5) If tax is paid under this section in respect of tangible personal property, then no tax is payable in respect of that property under section 5 or 11.

Tax on tangible personal property to be used to improve real property

68.21  (1) Subsection (3) applies to a contractor if,

(a) for the purposes of fulfilling a contract for the supply and installation of improvements to real property, the contractor,

(i)  before, on or after the date this section comes into force, acquires tangible personal property at a sale in British Columbia, or

(ii)  before July 1, 2010, brings or sends into British Columbia, or receives delivery of in British Columbia, tangible personal property, and

(b) on or before December 31, 2010, the tangible personal property is not used under the terms of the contract so that it ceases to be tangible personal property and becomes part of the real property.

(2) Despite subsection (1), subsection (3) does not apply to a contractor if, on or before December 31, 2010,

(a) the contractor must pay tax in respect of that tangible personal property under section 5, 9 or 11,

(b) a person must pay tax in respect of that tangible personal property under section 68.2 (3), or

(c) the contractor sells the tangible personal property to another person.

(3) A contractor to whom this subsection applies must pay to the government, at the prescribed time and in the prescribed manner, a tax at the rate of 7% of the purchase price of the tangible personal property referred to in subsection (1).

Transition — application of sections 68.2 and 68.21

68.22  (1) In this section, "person" means the person referred to in section 68.2 (2).

(2) Tax is payable by a contractor under section 68.2 (1) or 68.21 in respect of tangible personal property acquired by the contractor at a sale in British Columbia

(a) if, before May 1, 2010, the consideration for the tangible personal property becomes due or is paid without having become due,

(b) if, before July 1, 2010, ownership of the tangible personal property is transferred or the tangible personal property is delivered to the contractor, or

(c) if,

(i)  before May 1, 2010, only a portion of the consideration for the tangible personal property becomes due or is paid without having become due, and

(ii)  on or after July 1, 2010, ownership of the tangible personal property is transferred and the tangible personal property is delivered to the contractor.

(3) Tax is not payable by a contractor under section 68.2 (1) or 68.21 in respect of tangible personal property acquired by the contractor at a sale in British Columbia if

(a) all of the consideration for the tangible personal property becomes due on or after May 1, 2010,

(b) none of the consideration for the tangible personal property is paid before May 1, 2010, and

(c) on or after July 1, 2010, ownership of the tangible personal property is transferred and the tangible personal property is delivered to the contractor.

(4) Tax is not payable by a contractor under section 68.2 (1) in respect of tangible personal property if, on or after July 1, 2010, the contractor brings or sends into British Columbia, or receives delivery of in British Columbia, the tangible personal property.

(5) Tax is payable by a person under section 68.2 (3) in respect of tangible personal property

(a) if, before May 1, 2010, the consideration for the tangible personal property payable by the person becomes due or is paid without having become due,

(b) if, before July 1, 2010, ownership of the tangible personal property is transferred or the tangible personal property is delivered to the person, or

(c) if,

(i)  before May 1, 2010, only a portion of the consideration for the tangible personal property payable by the person becomes due or is paid without having become due, and

(ii)  on or after July 1, 2010, ownership of the tangible personal property is transferred and the tangible personal property is delivered to the person.

(6) Tax is not payable by a person under section 68.2 (3) in respect of tangible personal property if

(a) all of the consideration for the tangible personal property payable by the person becomes due on or after May 1, 2010,

(b) none of the consideration for the tangible personal property payable by the person is paid before May 1, 2010, and

(c) on or after July 1, 2010, ownership of the tangible personal property is transferred and the tangible personal property is delivered to the person.

(7) If tax is payable under section 68.2 (1) or (3) or 68.21 by reason of subsection (2) (c) or (5) (c) of this section, for the purpose of calculating the tax payable under section 68.2 (1) or (3) or 68.21, the purchase price of the tangible personal property is deemed to be the amount equal to the purchase price of the tangible personal property less that portion of the consideration for the tangible personal property that is not paid before May 1, 2010 and becomes due on or after May 1, 2010.

Exemption

68.3  A contractor referred to in section 68.2 (1) or 68.21 is exempt from tax imposed by that section if the person with whom the contractor has entered into the contract

(a) would be eligible for an exemption under this Act or section 87 of the Indian Act (Canada) on that tangible personal property if the person were to purchase it, and

(b) provides the contractor with a signed certification, in a form satisfactory to the commissioner, certifying the matter referred to in paragraph (a).

Application of other provisions of Act

68.4  For the purposes of applying the other provisions of this Act in relation to a tax imposed by this Division,

(a) if section 68.2 (2) applies to a contract referred to in that section, entering into the contract is deemed to be a retail sale, by the contractor to the person referred to in section 68.2 (2), of the tangible personal property referred to in section 68.2 (1), and

(b) if section 68.2 (2) does not apply to a contract referred to in that section, the acquisition of tangible personal property referred to in section 68.2 (1) or 68.21 is deemed to be a retail sale by the seller of that property to the contractor.

Part 3 — Exemptions

Exemption for minimal sale

69  Sales at a price of less than 15 cents are exempt from taxes imposed by sections 5 to 25.

Sales of taxable and non-taxable property and services

69.1  Subject to the regulations, tangible personal property or taxable services otherwise subject to tax under this Act are exempt if the tangible personal property or taxable services

(a) are sold for a single price with tangible personal property or services that, under this Act, are not subject to tax or are exempt from tax, and

(b) have a value that is 10% or less of the value of all the tangible personal property or services sold for the single price.

Exemptions in relation to food, clothing and shelter

70  The following are exempted from taxes imposed by sections 5 to 25:

(a) food products for human consumption;

(b) natural water;

(c) candies and confections;

(d) soft drinks;

(e) bottles that are to be used to hold a milk product that is sold at a retail sale and that are returnable to and reusable by a dairy;

(f) children's footwear, as determined by regulation, and children's clothing, as determined by regulation, but not including disposable diapers that are designed for babies or young children;

(g) clothing patterns and, if intended for the purpose of making or repairing clothing, yarn, natural fibres and yard good materials;

(h) sales of used clothing or used footwear if the purchase price of the item of clothing or footwear is less than $100;

(i) used manufactured homes as defined in the regulations under circumstances prescribed by the regulations.

Exemptions in relation to health and safety

71  The following are exempted from taxes imposed by sections 5 to 25:

(a) vitamins and dietary supplements;

(b) medicaments, when

(i)  sold on the prescription of a practitioner as defined under the Pharmacy Operations and Drug Scheduling Act, or

(ii)  provided as part of a promotional distribution by a pharmaceutical company to a practitioner as defined under the Pharmacy Operations and Drug Scheduling Act;

(b.1) drugs or vaccines as prescribed by regulation;

(b.2) [Repealed 2009-14-60.]

(c) artificial limbs and orthopaedic appliances;

(d) equipment designed solely for the use of persons with a permanent disability or handicap;

(e) hearing aids and dentures;

(f) dental and optical appliances, when

(i)  sold on the prescription of a dentist, an optometrist or a physician, or

(ii)  provided as part of a promotional distribution to a dentist, an optometrist, an optician or a physician, if the dental or optical appliances are otherwise available to patients only by prescription;

(g) specialized devices, as prescribed by the regulations, designed and purchased for use in the transportation of persons with disabilities;

(h) diabetic and ostomy supplies;

(i) patent medicines as prescribed by regulation;

(j) self-contained smoke or fire alarm devices designed for use in residential premises and selling for a unit price of less than $250;

(k) work related safety equipment, as prescribed by the regulations, that is designed to be worn by a worker.

Exemptions in relation to publications and school supplies

72  (1) The following are exempted from taxes imposed by sections 5 to 25:

(a) printed and bound books that

(i)  contain no advertising, and

(ii)  are published solely for educational, technical, cultural or literary purposes,

but not directories, price lists, time tables, rate books, catalogues, reports, fashion books, albums or any books of the same general classes;

(b) magazines, periodicals, newspapers, employee newsletters, employee magazines and student yearbooks;

(c) school supplies the Lieutenant Governor in Council determines by regulation.

(2) If a publication is sold or given away with another publication, a determination of whether one or both publications qualify for an exemption under subsection (1) (b) must be based on the content of each publication considered separately.

Exemptions in relation to agriculture and fisheries

73  (1) The following are exempted from taxes imposed by sections 5 to 25:

(a) subject to subsection (1.1), grain, mill and other agricultural feeds and seeds that are purchased to be used and are used solely for an agricultural purpose;

(a.1) subject to subsection (2), fertilizers;

(b) prescribed tangible personal property purchased or leased by a bona fide farmer that is to be used, and is used, solely for a farm purpose;

(c) prescribed tangible personal property purchased or leased by a bona fide aquaculturist that is to be used, and is used, solely for an aquaculture purpose;

(d) boats, fishing nets and other fishing apparatus utilized in catching fish for human consumption, purchased or leased by a bona fide commercial fisher for use only in the fisher's trade.

(1.1) The exemption in subsection (1) (a) does not apply to grain, mill and other agricultural feeds and seeds that are purchased to be used or are used to feed

(a) a bird, a product of which does not ordinarily constitute food for human consumption, or

(b) a household pet.

(2) The exemption in subsection (1) (a.1) does not apply to fertilizers purchased for a non-agricultural purpose by a person other than an individual unless the fertilizer is otherwise exempted by this Act or the regulations.

Exemptions in relation to fuel, energy and conservation

74  The following are exempted from taxes imposed by sections 5 to 25:

(a) fuel taxed under or exempted from tax under the Motor Fuel Tax Act;

(a.1) biodiesel fuel;

(b) electricity and natural gas when purchased for use in a residential dwelling unit;

(c) fuel oil when purchased for use in a residential dwelling unit;

(d) coal and coke when purchased for use in a residential dwelling unit;

(e) prescribed tangible personal property used for the conservation of energy, subject to the prescribed terms and conditions.

Exemptions in relation to transportation

75  (1) The following are exempted from taxes imposed by sections 5 to 25:

(a) non-motorized 2 wheel bicycles;

(a.1) non-motorized 3-wheel tricycles each wheel of which has a diameter of 350 mm or more;

( a.2-a.3[Repealed RS1996-431-75(4).]

(b) aircraft powered by a turbine and parts for these aircraft;

(c) self propelled vessels of more than 500 tons gross;

(d) tangible personal property, other than aircraft or aircraft parts, purchased or leased by a commercial airline for consumption or use by its passengers, or by the airline in serving its passengers, during its interprovincial or international flights;

(e) trailers acquired to be used and used only with multijurisdictional vehicles for interjurisdictional commercial purposes;

(f) parts purchased for use in

(i)  a multijurisdictional vehicle, or

(ii)  a trailer referred to in paragraph (e).

(2) Tax payable under sections 5 to 25 by a purchaser, user or lessee of a motor vehicle that qualifies under the regulations as an alternative fuel vehicle is reduced by the amount set out in the regulations.

(3) Tax payable under sections 5 to 25 by a purchaser, user or lessee of a motor vehicle that qualifies under the regulations as a fuel-efficient vehicle is reduced by the amount set out in the regulations.

( 4[Spent. 1996-431-75 (4).]

Exemptions in relation to industry and commerce

76  (1) Subject to section 92.2 (4), the following are exempted from taxes imposed by sections 5 to 25:

(a) [Repealed 2008-10-105.]

(b) subject to subsection (2) and the regulations, a chemical substance, catalyst or direct agent used to produce or modify a reaction that is essential for the processing or manufacture of a product for sale or lease;

(b.1) [Repealed 2008-10-105.]

(c) subject to subsections (3) and (4), tangible personal property that is used for the purpose of being processed, fabricated or manufactured into, attached to or incorporated into other tangible personal property (other than "portable buildings" as defined in the regulations) for the purpose of retail sale or lease;

(c.1) subject to subsections (3) and (4), tangible personal property that is used in the course of providing a taxable service to other tangible personal property and that remains part of, or attached to, the other tangible personal property after the service has been provided;

(d) subject to subsection (3), tangible personal property, other than prescribed tangible personal property, that is to be attached to or processed, fabricated, manufactured or incorporated into a prototype, or copies of the prototype made for a prescribed purpose, if the prototype is a result of research and development activities aimed at developing a new or improved product or a new or improved process;

(d.1) a prototype or, if made for a prescribed purpose, a copy of a prototype if the prototype or copy is a result of research and development activities aimed at developing a new or improved product or a new or improved process;

(e) balls, rods and similar detached media used for grinding ore in the process of extracting minerals from ore;

(f) prescribed explosive supplies when purchased to be used for

(i)  mineral exploration, extraction or production, or

(ii)  development of a mineral mine other than construction of an access road to a mine;

(g) software source code in non-executable form;

(h) labels that are purchased to be attached to tangible personal property held for sale or lease and that are intended to remain with the tangible personal property after it is sold or leased;

(i) boomsticks for use as, and used as, part of a frame for transporting logs over water;

(i.1) used boom gear as defined in the regulations under circumstances prescribed by the regulations;

(j) software that is used exclusively for one or more of the following purposes:

(i)  incorporating copies of the software into other tangible personal property for retail sale;

(ii)  re-licensing copies of the software for retail sale;

(iii)  a prescribed purpose,

where

(iv)  under the terms of the licence governing the use of the software, the software must be used exclusively for one or more of the purposes referred to in subparagraphs (i) to (iii), or

(v)  the purchaser of the software has acquired all rights to the software, and the software is used exclusively for one or more purposes referred to in subparagraphs (i) to (iii);

(j.1) software that is

(i)  referred to in paragraph (b) or (c) of the definition of "software",

(ii)  sold by a person who retains no rights or interests in the software, and

(iii)  sold as part of a business sold as a going concern;

(j.2) software that

(i)  is referred to in paragraph (j.1) (ii) and (iii),

(ii)  was modified in a manner that involved changes to the source code, and

(iii)  was modified solely to meet the requirements of a specific person and

(A)  the purchase price or lease price, as applicable, of the modifications was separate from that of the unmodified software, and

(B)  the purchase price or lease price of the modifications was greater than the purchase price or lease price, as applicable, of the software in its unmodified form;

(k) prescribed machinery or equipment purchased or leased by a prescribed manufacturer or other prescribed person for a prescribed use;

(l) a recording of a moving picture production or of an audio production acquired for the purpose of

(i)  public broadcast by a licensed radio or television broadcaster,

(ii)  making copies

(A)  for public broadcast by a licensed radio or television broadcaster,

(B)  for public exhibition in a movie theatre or other public venue, or

(C)  for sale or lease, or

(iii)  copying into another recording of a moving picture production or of an audio production for

(A)  public broadcast by a licensed radio or television broadcaster,

(B)  public exhibition in a movie theatre or other public venue, or

(C)  sale or lease.

(2) If tangible personal property, other than electricity used in an electrolytic process, is used to produce energy, it does not qualify for exemption under subsection (1) (b).

(3) If tangible personal property, other than electricity used in an electrolytic process, is used to produce energy or is used as a source of energy, it does not qualify for exemption under subsection (1) (c), (c.1) or (d).

(4) The exemptions under subsection (1) (c) and (c.1) do not apply if the purchaser of the tangible personal property that is used for the purpose of being processed, fabricated or manufactured into, attached to or incorporated into other tangible personal property for the purpose of retail sale or lease is to retain an interest in the tangible personal property after the retail sale or lease.

(5) [Repealed 2008-10-105.]

(6) The exemption under subsection (1) (k) does not apply to machinery or equipment used in the provision of a taxable service, legal service, telecommunications service or parking right.

(7) For the purposes of the exemption under subsection (1) (j), "exclusively" means more than 90%.

Other general property and services exemptions

77  The following are exempted from taxes imposed by sections 5 to 25:

(a) tangible personal property that the Lieutenant Governor in Council may prescribe as exempted from taxation imposed by one or more of sections 5 to 25;

(b) sales of tangible personal property shipped by the seller for delivery outside British Columbia, including ships' stores delivered to commercial vessels of more than 500 tons gross that normally operate in extraterritorial waters;

(c) parts designed and used for the repair or reconditioning of tangible personal property exempted under this Part, other than parts for machinery or equipment exempted under section 76 (1) (k) or for boats or travel trailers exempted under section 79 (3);

(d) tangible personal property repurchased at a sale if

(i)  the purchaser takes possession of it under a security instrument, and

(ii)  the tax applicable under Division 1 of Part 2 was paid by that purchaser at the time of the preceding purchase by that purchaser;

(e) tangible personal property that would otherwise be taxable under sections 20 to 25, if

(i)  the tangible personal property was sold to the lessor by the lessee under a sale and immediate lease-back arrangement, and

(ii)  the lessee had, before the sale to the lessor, paid as purchaser of the tangible personal property any tax applicable under this Act, other than under section 12, 13 or 15.

Exemptions for purchases or leases intended for resale or lease

78  (1) A person who

(a) is a purchaser of tangible personal property and purchases the tangible personal property for the purpose only of leasing the property to other persons, or

(b) is a lessee of tangible personal property and leases the tangible personal property for the purpose only of re-leasing the property to other persons

is exempt from tax imposed by Divisions 1 and 2 of Part 2 on that purchase or lease.

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

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

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

(1.2) A person who

(a) is a purchaser of tangible personal property,

(b) purchases the tangible personal property solely for the purposes of

(i)  leasing the property to other persons, and

(ii)  occasionally, under an agreement, supplying the property with a person to operate it, and

(c) capitalizes the tangible personal property as lease inventory in the person's business accounting records

is exempt from tax imposed by Divisions 1 and 2 of Part 2 on that purchase.

(2) Subject to section 92.2 (5), a purchaser who purchases a taxable service is exempt from tax imposed by Division 5 of Part 2 on that purchase if the purchase is made for the purpose only of selling that taxable service to other persons.

(3) Subject to section 92.2 (5), a purchaser who purchases a telecommunication service is exempt from tax imposed by Division 7 of Part 2 on that purchase if the purchase is made for the sole purpose of selling to other persons the rights comprising that telecommunication service.

(4) A purchaser who purchases a parking right is exempt from tax imposed by Division 8 of Part 2 in respect of any portion of the parking right that was purchased for the purpose only of selling it to other persons.

Other exemptions

79  (1) A person to whom tangible personal property is provided by way of promotional distribution is exempt from taxes imposed by sections 5 to 25 on the amount by which

(a) the promotional distributor's purchase price of the tangible personal property

exceeds

(b) any payment made by the person to whom the tangible personal property is provided solely and specifically for the receipt by that person of that tangible personal property.

(2) Except for tax imposed by section 22 (2), the lessee of a conveyance described in section 13 (1) (c) or (d) who

(a) became lessee by selling the conveyance to the lessor under a sale and immediate lease-back arrangement,

(b) had, before the sale to the lessor, paid as purchaser of the conveyance the tax applicable under Division 1 of Part 2, and

(c) would otherwise be liable to pay tax under sections 20 to 25

is exempt from tax imposed by sections 20 to 25 in respect of the lease of that conveyance.

(3) A person to whom section 16 would otherwise apply is exempt from tax imposed by that section if

(a) the person is an individual,

(b) the tangible personal property in respect of which tax would otherwise be payable is a boat or travel trailer, and

(c) the boat or travel trailer is at no time used in British Columbia for a business purpose.

(4) For the purposes of subsection (3), "travel trailer" means a vehicle designed to be

(a) pulled on a highway, and

(b) used as temporary or seasonal accommodation.

Limit on exemptions

79.1  An exemption provided under this Act for tangible personal property does not apply to tangible personal property used to make that property.

Part 4 — Refunds

Limits on refunds

80  (1) Despite section 16 of the Financial Administration Act,

(a) a refund of less than $10 must not be made, and

(b) a refund must not be made on a claim for a refund that is made, subject to the regulations, more than 4 years after the date on which the amount claimed was paid.

(2) Despite the Limitation Act, an action for a refund must not be brought more than 4 years after the date on which the amount claimed was paid.

Limit on refunds — parking tax

80.1  Despite any other provision in this Act, a refund of tax paid under section 61 or of an amount paid as tax under section 61 must not be made on a claim for a refund that is made on or after July 1, 2010.

Application for refund

81  An application for a refund must be signed

(a) by the person who paid the tax in relation to which the refund is claimed, and

(b) if that person is a corporation, by a director or authorized employee of the corporation.

Refund where no obligation to pay or collect

82  (1) If the commissioner is satisfied that an amount has been paid as tax in circumstances where there was no legal obligation to pay the amount as tax, the commissioner must refund from the consolidated revenue fund that amount to the person entitled to it.

(1.1) If the commissioner is satisfied that a person has remitted to the commissioner an amount as collected taxes that the person neither collected nor was required to collect under this Act, the commissioner must refund the amount to the person from the consolidated revenue fund.

(2) to (4) [Repealed 2008-11-16.]

Refund of taxes in accordance with Nisga'a Nation Taxation Agreement

82.1  (1) In this section:

"person" has the same meaning as "claimant" in paragraph 6 (b) of the Taxation Agreement;

"Taxation Agreement" means the Nisga'a Nation Taxation Agreement tabled in the Legislative Assembly on November 30, 1998, but does not include any amendments made to that agreement after that date.

(2) On application and on receipt of evidence establishing that a person is entitled to a refund as provided in the Taxation Agreement of tax paid by the person under this Act, the commissioner must pay that refund from the consolidated revenue fund to that person.

Treaty first nation tax refunds

82.11  (1) In this section, "tax treatment agreement" means an agreement among a treaty first nation, British Columbia and Canada that,

(a) under the chapter of the treaty first nation's final agreement that sets out the agreement of the parties in relation to taxation, is required to come into effect on the date the final agreement comes into effect, and

(b) is tabled in the Legislative Assembly on or before the date settlement legislation in relation to the final agreement receives Third Reading,

and, for greater certainty, does not include amendments to the agreement made after the date the settlement legislation receives Third Reading.

(2) On application, and on receipt of evidence establishing that a person is entitled under a tax treatment agreement to a refund of tax paid by the person under this Act, the commissioner must pay that refund from the consolidated revenue fund to that person.

Refunds when joint and several liability

82.2  (1) Despite section 82 (1.1), if the commissioner is satisfied that the total of the amount paid by one or more directors of the corporation who are jointly and severally liable with the corporation under section 102.1 (1) and the amount, if any, paid by the corporation exceeds the amount owed by the corporation under this Act for the period that the directors who made the payments were jointly and severally liable with the corporation, the commissioner must pay a refund from the consolidated revenue fund in accordance with the following:

(a) if only one director paid all or a part of the amount for which one or more directors and the corporation were jointly and severally liable under section 102.1 (1), refund to the director the amount of the excess up to the amount paid by the director;

(b) if two or more directors paid the amount or a part of the amount for which directors and the corporation were jointly and severally liable under section 102.1 (1), refund to the directors the amount of the excess divided proportionately between the directors, up to the amount paid by each director;

(c) after making the payment under paragraph (a) or (b), refund to the corporation any remaining amount of the excess, up to the amount paid by the corporation.

(2) A refund under subsection (1) (b) must be based on the ratio of the amounts paid by the directors who are jointly and severally liable under section 102.1 (1) for the applicable period of the refund.

(3) A refund may be paid under subsection (1) only to a director or corporation who has applied for a refund.

Contracts to improve real property

83  (1) This section applies if a person, as a customer under a contract for the supply and installation of improvements to real property, has paid in error an amount in addition to the contract price for or on account of taxes in respect of the contract price.

(2) Despite section 82, the amount that may be refunded to the person referred to in subsection (1) is limited to the difference between

(a) the amount paid in error by that person in respect of the contract price, and

(b) the amount of tax payable but unpaid by the contractor as purchaser in respect of the tangible personal property supplied under the contract.

(3) The amount paid in error that is prevented from being refunded by subsection (2) is deemed to have been paid by the person on behalf of the contractor in respect of the tangible personal property supplied under the contract.

(4) An action or other proceeding must not be brought by or on behalf of the person to recover a refund of the amount referred to in subsection (3).

Purchases returned to vendor

84  (1) This section does not apply to the provision of rights or services deemed to be a sale of tangible personal property under section 39, 45, 52, 60 or 65.

(2) Unless section 10 (1) applies, if, after June 30, 2010 but before November 1, 2010,

(a) a purchaser returns tangible personal property to the vendor who sold it to the purchaser, and

(b) in return for the tangible personal property the vendor pays a refund to the purchaser,

the vendor must refund to the purchaser the amount of tax paid under this Act that is attributable to the amount of the refund.

(3) Unless section 10 (1) applies, if, after June 30, 2010 but before November 1, 2010,

(a) a purchaser returns tangible personal property to the vendor who sold it to the purchaser, and

(b) the returned tangible personal property is exchanged for other tangible personal property that has a purchase price that is less than the purchase price paid for the returned tangible personal property,

the vendor must refund to the purchaser the difference between the amount of tax paid under this Act by the purchaser on the purchase price of the returned tangible personal property and the amount of tax that would have been payable under this Act on the purchase price of the exchanged tangible personal property if tax had been payable on the purchase price of the exchanged tangible personal property on the date the returned tangible personal property was purchased.

(4) Despite subsections (2) and (3), a vendor must not refund an amount under this section after October 31, 2010.

Claiming races

85  (1) This section applies if a purchaser of a horse has sold the horse and repurchases it before July 1, 2010 at a claiming race.

(2) On application and on receipt of evidence satisfactory to the commissioner that the purchaser qualifies under this section, the commissioner must refund to the purchaser out of the consolidated revenue fund the amount of tax paid at the time of claiming.

(3) As a limit on subsection (2), the amount of a refund under that subsection must not exceed the amount of the tax paid on the most recent purchase of that horse before its repurchase by the purchaser.

Conveyances used interjurisdictionally

86  (1) On application by a purchaser or lessee of an aircraft, vessel, railway rolling stock or other conveyance who

(a) has paid tax under section 5 (1) or 20 (1) on the conveyance, and

(b) satisfies the commissioner that from the date of purchase or the date of the lease, as applicable, the conveyance was used

(i)  in interprovincial or international trade for the commercial carriage of passengers or goods, and

(ii)  if the conveyance is an aircraft, in flights originating or terminating in British Columbia or connecting 2 or more points in British Columbia,

the commissioner must refund to that purchaser or lessee out of the consolidated revenue fund the difference between the tax paid by the purchaser or lessee on the conveyance and the tax calculated in accordance with section 13 (3) or (5) or 21 (4) and (5), as applicable.

(2) On application by a purchaser of a part of an aircraft, vessel, railway rolling stock or other conveyance who

(a) has paid tax under section 5 (1) on the part, and

(b) satisfies the commissioner that, from the date of purchase, the part was not used other than in a conveyance used as described in subsection (1) (b),

the commissioner must refund to the purchaser out of the consolidated revenue fund the difference between the tax paid by the purchaser on the part and the tax calculated in accordance with section 13 (4) or (6).

Property shipped out of British Columbia

87  (1) On application by a purchaser who purchased tangible personal property in British Columbia for a business use and who paid tax under section 5 (1) on that purchase, the commissioner must refund to the purchaser out of the consolidated revenue fund the tax paid on the purchase if

(a) the tangible personal property

(i)  is shipped out of British Columbia for use outside British Columbia, or

(ii)  in the case of promotional distribution material, is shipped out of British Columbia in bulk to a recipient for the recipient's own use or consumption outside British Columbia, and

(b) no use whatsoever was made of the tangible personal property while it was in British Columbia other than to store it in and to ship it out of British Columbia.

(2) On application by a person who paid tax respecting tangible personal property that the person purchased in British Columbia, brought or sent into British Columbia or took delivery of in British Columbia, the commissioner must refund to that person out of the consolidated revenue fund the tax paid if

(a) that person is a manufacturer of portable buildings within the meaning of the regulations,

(b) the tangible personal property was processed, fabricated or manufactured into, attached to or incorporated into a portable building within the meaning of the regulations, and

(c) the portable building referred to in paragraph (b) is shipped by the manufacturer for delivery and use outside British Columbia.

Farm use property

88  On application by a person who is a bona fide farmer who

(a) has paid tax

(i)  under section 5 (1) or 20 (1) on tangible personal property prescribed for the purpose of section 73 (1) (b) that was purchased or leased by the person during the 2 years before the person became a bona fide farmer, or

(ii)  under Division 5 of Part 2 on the provision of taxable services in respect of tangible personal property prescribed for the purpose of section 73 (1) (b) if those services were purchased by the person during the 2 years before the person became a bona fide farmer, and

(b) satisfies the commissioner that, from the date of purchase or the date of the lease, as applicable, the tangible personal property was used solely for a farm purpose,

the commissioner may refund to that person out of the consolidated revenue fund the tax paid under the Act.

School use property purchased by parents' advisory councils

88.1  (1) In this section:

"board of education" means a board of school trustees for a school district, and includes a francophone education authority;

"francophone education authority", "francophone school", "school district" and "school year" have the same meaning as in the School Act;

"PAC" means, in respect of a school, the parents' advisory council established for the school under section 8 or 166.26 of the School Act;

"PAC-raised funds" means, in relation to a PAC,

(a) funds raised directly by the PAC through its fundraising activities,

(b) cash donations made directly to the PAC, and

(c) government funding provided directly to the PAC,

but does not include funds provided to the PAC directly or indirectly by a board of education;

"school" has the same meaning as in the School Act, and includes a francophone school.

(2) Subject to subsections (4) and (6), a PAC may, in respect of tax paid by it under section 5 (1) or 11 on the purchase of tangible personal property, apply for a refund of the portion of the tax that is specified under subsection (5) of this section if that tangible personal property

(a) was purchased, in whole or in part, with PAC-raised funds, and

(b) is given to a school for school use.

(3) Subject to subsections (4) and (6), a board of education may, in respect of tax paid by it under section 5 (1) or 11 on the purchase of tangible personal property, apply for a refund of the portion of the tax that is specified under subsection (5) of this section if that tangible personal property

(a) was purchased, in whole or in part, with PAC-raised funds, and

(b) is given to a school for school use.

(4) An application under subsection (2) or (3)

(a) must include the prescribed information, certifications and documentation to substantiate, to the satisfaction of the commissioner, the applicant's eligibility for the refund and the amount of refund payable under subsection (5), and

(b) must be made only in respect of tangible personal property purchased after June 30, 2002 and in respect of which no other application has been made under this section.

(5) After receiving an application by a PAC or a board of education in relation to tax paid on the purchase of tangible personal property, the commissioner must, if satisfied that the application complies with subsections (2) to (4) and (6), refund to the applicant, out of the consolidated revenue fund, the proportion of the tax paid on that purchase that equates to the proportion of the purchase price that was paid for with PAC-raised funds.

(6) A PAC must not make more than one application under this section in a school year and a board of education must not make more than 2 applications under this section in a school year.

(7) [Repealed 2008-11-17.]

Medical equipment purchased by charitable organizations

88.2  (1) In this section:

"charity funds" means the funds of an eligible charity other than funds provided directly or indirectly by

(a) a health authority, a health facility or a local authority,

(b) the government of British Columbia, except grants under a certificate of affiliation under section 41 of the Gaming Control Act,

(c) the government of Canada, or

(d) a prescribed person;

"eligible charity" means

(a) a registered charity, and

(b) a member of the British Columbia Association of Health-Care Auxiliaries, a society incorporated under the Society Act;

"health authority" means a regional health board designated under section 4 of the Health Authorities Act;

"health facility" means

(a) a hospital within the meaning of the Hospital Act, including a private hospital within the meaning of Part 2 of that Act, and

(b) a prescribed facility;

"medical equipment" does not include

(a) equipment of the types prescribed, and

(b) equipment for the prescribed uses.

(2) Subject to subsections (3) and (5), an eligible charity may, in respect of tax paid by it under section 5 (1), 11 or 112.3 on the purchase of medical equipment, apply for a refund of the portion of the tax that is specified under subsection (4) of this section if that medical equipment

(a) was purchased, in whole or in part, with charity funds, and

(b) is used by a health facility to treat patients or diagnose their ailments.

(3) An application under subsection (2)

(a) must include the prescribed information, certifications and documentation to substantiate, to the satisfaction of the commissioner, the applicant's eligibility for the refund and the amount of the refund payable under subsection (4), and

(b) may be made only in respect of medical equipment purchased on or after February 21, 2007.

(4) After receiving an application by an eligible charity in relation to tax paid on the purchase of medical equipment, the commissioner, if satisfied that the application complies with subsections (2), (3) and (5), must refund to the applicant out of the consolidated revenue fund a portion of the tax determined in accordance with the regulations.

(5) An eligible charity may not make more than one application under this section in a calendar year.

Repealed

89  [Repealed 2001-34-29.]

Deduction for bad debts

90  (1) The commissioner may, in accordance with the regulations, refund from the consolidated revenue fund to a collector who sells or leases tangible personal property a portion, determined in the prescribed manner, of the amount sent by the collector to the commissioner in respect of taxes payable on that transaction under this Act.

(2) The commissioner may make a refund under subsection (1) if

(a) the collector, in accordance with this Act, remits the tax required under this Act to be levied and collected for the transaction referred to in subsection (1),

(b) the purchaser or lessee subsequently fails to pay to the collector the full amount of the consideration and tax payable on that transaction, and

(c) the collector writes off as unrealizable or uncollectable the amount owing by the purchaser or lessee.

(3) If the refund payable under this section to a collector is in respect of an amount referred to in subsection (2) (c) that the collector has written off before July 1, 2010, the collector may, in the prescribed manner, deduct the amount of the refund from the amount of taxes that the collector is required to remit under this Act.

(4) If a collector who has obtained a refund under subsection (1) or made a deduction under subsection (3) recovers, before July 1, 2010, some or all of the amount referred to in subsection (2) (c) with respect to which the refund was paid or the deduction was made, the collector must add an amount, determined in the prescribed manner, to the tax to be paid or remitted by the collector under this Act with respect to the reporting period in which the recovery was made.

(5) If a collector who has obtained a refund under subsection (1) or made a deduction under subsection (3) recovers, on or after July 1, 2010, some or all of the amount referred to in subsection (2) (c) with respect to which the refund was paid or the deduction was made, the collector must

(a) immediately report the matter in writing to the commissioner,

(b) supply to the commissioner all pertinent information required by the commissioner in respect of the amount recovered, and

(c) pay to the government, at the prescribed time and in the prescribed manner, an amount, determined in the prescribed manner, in respect of the amount recovered.

Repealed

90.1  [Repealed 2010-5-143.]

Repealed

90.2  [Repealed 2005-16-45.]

Hybrid electric buses

90.3  (1) In this section, "passenger bus", "shuttle bus" and "hybrid electric vehicle" have the meanings prescribed in the regulations.

(2) On application by a person who

(a) purchases parts required for the modification of a passenger bus or shuttle bus so that the bus

(i)  qualifies as a hybrid electric vehicle, or

(ii)  operates exclusively on hydrogen-enriched compressed natural gas,

(b) pays tax under section 5, and

(c) satisfies the commissioner that the person qualifies under this section,

the commissioner must refund to that person out of the consolidated revenue fund an amount determined in accordance with the regulations.

Fuel-efficient vehicles

90.4  (1) In this section, "fuel-efficient vehicle" has the meaning prescribed in the regulations.

(2) On application by a person who has paid tax under section 5 or 20 on the purchase or lease of a vehicle that

(a) on the date of purchase or lease does not qualify for a reduction under section 75 (3) as a fuel-efficient vehicle, and

(b) would have qualified for a reduction referred to in paragraph (a) had the vehicle been purchased or leased within 6 months after the date of purchase or lease,

the commissioner must refund to the person out of the consolidated revenue fund an amount equal to the amount the person would have received as a tax reduction under section 75 (3) had the vehicle qualified for the reduction on the date of purchase or lease, provided that the person satisfies the commissioner that the vehicle qualifies under this section.

Refunds authorized or required under regulations

90.5  The commissioner,

(a) if authorized by the regulations, may pay out of the consolidated revenue fund a refund of all or part of the tax paid by an applicant for a refund, and

(b) if required by the regulations, must pay out of the consolidated revenue fund a refund of all or part of the tax paid by an applicant for a refund.

Part 5 — Collection of Taxes

Division 1 — Local Collectors

Tax not to be absorbed by seller or lessor

91  A person who sells or leases, as lessor, tangible personal property must not advertise or hold out or state to the public or to any purchaser, user or lessee, directly or indirectly, that the tax or any part of it imposed under this Act

(a) will be assumed or absorbed by the person,

(b) will not be considered as an element in the price to the purchaser, user or lessee, or

(c) if added, will be refunded.

Repealed

92  [Repealed 2010-5-146.]

Repealed

92.1  [Repealed 2010-5-146.]

Persons who are not required to be registered

92.2  (1) In this section, "qualifying tangible personal property" means tangible personal property other than

(a) motor vehicles,

(b) aircraft,

(c) vessels,

(d) liquor,

(e) parking rights, and

(f) other prescribed tangible personal property.

(2) A person, other than a person in a class of persons prescribed by regulation, who sells qualifying tangible personal property and whose gross annual sales from all qualifying tangible personal property sold is $10 000 or less is not required to obtain a registration certificate under section 92 if the person does not regularly make sales or leases of tangible personal property from an established commercial premises and does not maintain an established business premises.

(3) A person described in subsection (2) who does not obtain a registration certificate under section 92

(a) must not collect tax on sales of qualifying tangible personal property,

(b) must keep a record of all sales and leases, and

(c) must pay tax under sections 5 (1), 40 (1), 46 (1) and 53 on qualifying tangible personal property acquired for resale as if the person were a purchaser of that qualifying tangible personal property.

(4) Tangible personal property referred to in section 76 (1) (b), (c), (c.1), (h) and (j) to (l) and in prescribed sections of the regulations is not exempted from taxes imposed by sections 5 to 25 and 112.3 when purchased by a person described in subsection (3) of this section.

(5) The exemptions set out in section 78 (2) and (3) do not apply to a person described in subsection (3) of this section.

(6) Despite sections 5 (1), 40 (1), 46 (1) and 53, a person who purchases qualifying tangible personal property from a person described in subsection (3) of this section is not required to pay tax on that purchase.

Seller or lessor deemed to be agent of minister

93  (1) Every person, other than a person described in section 92.2 (3), who

(a) sells tangible personal property at a retail sale in British Columbia,

(b) leases, as lessor, tangible personal property in British Columbia, or

(c) maintains a place of business or has a representative in British Columbia

is deemed to be an agent for the minister, and as such must levy and collect the tax imposed by this Act on the purchaser, user or lessee.

(1.1) Every person who is located outside of British Columbia and who, in the ordinary course of business,

(a) solicits persons in British Columbia for orders to purchase tangible personal property, by advertising or any other means,

(b) accepts orders to purchase tangible personal property, if the orders to purchase originate from locations in British Columbia,

(c) sells tangible personal property to a person in British Columbia

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

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

(iii)  on behalf of or as agent for a principal, if the property is for the consumption or use by the principal or by another person at the expense of the principal, and

(d) causes the tangible personal property described in paragraph (c) to be delivered into British Columbia

is deemed to be an agent for the minister, and as an agent must levy and collect the tax from the person on whom it is imposed by this Act.

(2) The commissioner may, in writing, exempt from the requirements of subsection (1), a vendor who sells tangible personal property at a retail sale in British Columbia on a passenger carrying commercial vessel that makes scheduled sailings

(a) from a port inside British Columbia to a port outside British Columbia, or

(b) from a port outside British Columbia to a port inside British Columbia.

(3) In the case of legal services referred to in section 47 (3) (b), unless the person required by this Act to collect tax under that section has reason to believe that an estimate made under section 47 (4) in relation to the legal services is not reasonable, the obligation of that person to collect and remit the tax is considered to be met if the person collects and remits the amount of tax payable in accordance with the estimate.

(4) Any money received by a collector in respect of a sale or lease in relation to which tax is payable under this Act, up to the full amount of the tax owing, is deemed to be payment of the tax owing by the purchaser or lessee under this Act.

Tax payment agreements

93.1  (1) The commissioner may, in the circumstances established by the regulations, enter into an agreement, with a person liable to pay the tax imposed by this Act, relating to the time and manner in which the tax is to be paid to the government.

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

(3) Despite anything in this Act but subject to subsection (7), an agreement referred to in subsection (1) may provide

(a) that instead of paying tax to a person referred to section 93 (1) or (1.1), the person liable must pay the tax directly to the government,

(b) that instead of paying tax to an agent referred to in Division 2, the person liable must pay the tax directly to the government,

(c) that the tax be paid at a time other than the time referred to in this Act,

(d) that interest accrues from a time other than the time at which the tax is due and payable under this Act,

(e) that payments are based on formulas or estimates referred to in the agreement, and

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

(4) If an agreement referred to in subsection (1) is, by the terms of the agreement or by the regulations, subject to a condition referred to in subsection (3) (a), the person referred to in section 93 (1) or (1.1) is relieved of the obligation to collect the tax.

(5) The commissioner may not enter into an agreement referred to in subsection (1) after the date this subsection comes into force.

(6) Despite an agreement referred to in subsection (1), the commissioner may terminate the agreement in accordance with the regulations.

(7) Despite an agreement referred to in subsection (1), the person who has entered into the agreement must pay, at the prescribed time and in the prescribed manner, the tax imposed by this Act.

Collector deemed to act under Financial Administration Act

94  (1) Every person who collects any tax imposed under this Act is deemed to act subject to Part 10 of the Financial Administration Act.

(1.1) Despite subsection (1), sections 83 and 85 of the Financial Administration Act do not apply to a person who is required to collect tax under section 93 (1.1).

(2) Despite any other Act, a person acting under this section is not, by so acting, made ineligible as a member of the Legislative Assembly of British Columbia.

Allowance for collection of tax

95  (1) The minister may make an allowance to vendors and lessors, and to persons who are required to collect tax under section 93 (1.1), for their services in collecting and forwarding the tax to the government as prescribed by the regulations made by the Lieutenant Governor in Council.

(2) Despite any other Act, a person accepting an allowance under this section is not, by that acceptance, made ineligible as a member of the Legislative Assembly of British Columbia.

Time when tax is to be collected and remitted

96  (1) Subject to subsections (1.1), (2) and (3) and sections 11 to 15 and 19, tax imposed under this Act in relation to a purchase price, whether the purchase price is payable in cash, on terms, by installments or otherwise, must be collected at the time of sale on the whole amount of the purchase price.

(1.1) A person who is required to collect tax under section 93 (1.1) must collect the tax at or before the time the tangible personal property is received in British Columbia.

(2) A tax imposed under any of sections 36 to 65, whether the purchase price is payable in cash, on terms, by installments or otherwise, must be collected at the time the purchase price is paid or payable, whichever is earlier.

(3) In the case of legal services referred to in section 47 (3) (b), unless the person required by this Act to collect tax under that section has reason to believe that an estimate made under section 47 (4) in relation to the legal services is not reasonable, the obligation of that person to collect and remit the tax is considered to be met if the person collects and remits the amount of tax payable in accordance with the estimate.

(4) Subject to sections 21 (2) and 25 (2), tax imposed under this Act in relation to a lease price must be collected at the time each payment of the lease price is paid or is payable, whichever is earlier.

(5) A levy under Division 9 of Part 2, whether the purchase price is payable in cash, on terms, by installments or otherwise, must be collected at the time of sale.

(6) Amounts to be collected under this Act, when collected, must be remitted to the commissioner at the prescribed times and in the prescribed manner.

(7) If a person collects an amount as if it were a tax imposed under this Act, the person must remit to the commissioner the amount collected at the same time and in the same manner as a tax collected under this Act.

Transition — time when tax is to be collected

96.1  (1) Despite any other provision of this Act or the regulations but subject to subsection (2), tax imposed under this Act must be collected by December 31, 2010.

(2) Subsection (1) does not apply

(a) to tax imposed under section 25 (1), or

(b) to tax imposed under this Act if the time at which the tax is payable is otherwise provided for by regulation under section 93.1 (7) or 140.

Duty to make returns of tax collections

97  Every vendor and lessor, and every person who is required to collect tax under section 93 (1.1), must

(a) make returns to the commissioner, and

(b) keep records in the form and substance prescribed by the regulations made by the Lieutenant Governor in Council.

Duty to maintain records

98  (1) Every manufacturer, wholesaler, importer, jobber, agent, vendor and lessor must keep a record of all purchases, sales and leases made by them before July 1, 2010 in respect of tangible personal property, whether for consumption, use, resale or lease.

(2) Every person who is required to collect tax under section 93 (1.1) must keep a record of all sales and leases by them of tangible personal property for which there is a collection obligation under this Act.

Commissioner's certificate required for sales in bulk

99  (1) A person must not dispose of the person's stock through a sale in bulk without first obtaining a certificate in duplicate from the commissioner that all taxes collected by that person have been paid.

(2) A person purchasing stock through a sale in bulk must obtain from the person selling the stock the duplicate copy of the certificate obtained under subsection (1).

(3) If the person purchasing the stock fails to obtain the duplicate copy as required by subsection (2), that person is responsible for payment to the commissioner of all taxes collected by the person selling the stock.

Sale and lease-back documentation

100  (1) For the purposes of section 77 (e), the lessor must collect the tax under sections 21 to 25 unless the lessee gives the lessor a copy of documentation evidencing

(a) the original purchase by the lessee, and

(b) that the tax applicable under Division 1 of Part 2 on the original purchase was paid by the lessee.

(2) The lessor must keep the copy of the documentation under subsection (1) until authorized by the commissioner to dispose of it.

Purchaser, user or lessee liable for tax

101  (1) The purchaser, user or lessee is liable for, and remains liable for, the tax imposed under this Act until it has been collected.

(2) If the person selling or leasing tangible personal property fails to collect the tax, that person must immediately notify the commissioner, and the purchaser, user or lessee may be sued for the tax in any court of competent jurisdiction.

(3) Nothing in subsection (1) or (2) makes a lessee liable to pay a levy under Division 9 of Part 2 on tangible personal property that is leased by the lessee or that forms part of tangible personal property that is leased by the lessee.

Tax collected deemed to be held in trust for government

102  If a person collects an amount of tax under this Act or collects an amount as if it were tax under this Act,

(a) the person is deemed to hold the amount in trust for the government and for the payment of the amount to the government in the manner and at the time required under this Act, and

(b) the amount collected is deemed to be held separate from and does not form a part of the person's money, assets or estate, whether or not the amount collected has in fact been kept separate and apart from either the person's own money or the assets of the estate of the person who collected the amount.

Director's liability

102.1  (1) Subject to this section, if a corporation has failed to collect or remit taxes as required under this Act, a director of the corporation is jointly and severally liable with the corporation to pay an amount equal to the taxes that the corporation failed to collect or remit during the term of the director, including penalties and interest on that amount.

(2) A director of a corporation is not liable under subsection (1) unless one of the following has occurred:

(a) a certificate has been filed under section 107 with respect to the amount the corporation is liable to pay under this Act;

(b) the corporation has been dissolved or has commenced liquidation or dissolution proceedings in any jurisdiction;

(c) the corporation has, under the Bankruptcy and Insolvency Act (Canada),

(i)  made an assignment in bankruptcy,

(ii)  filed a notice of intention to make a proposal with the official receiver, or

(iii)  made a proposal under Division 1 of Part III of that Act;

(d) a receiving order has been made against the corporation under the Bankruptcy and Insolvency Act (Canada);

(e) the corporation has obtained a court order granting a stay of proceedings under section 11 (3) of the Companies' Creditors Arrangement Act (Canada);

(f) the corporation has been or is subject in any jurisdiction to a proceeding of a similar nature to a proceeding referred to in paragraphs (c) to (e).

(3) A director of a corporation is not liable under subsection (1) if the director exercised the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances to prevent the corporation's failure to collect or remit taxes as required under this Act.

Deemed director

102.2  (1) If the commissioner has reason to believe that a person who was not a director of a corporation performed some or all of the functions of a director of the corporation, the commissioner may request the person and the corporation to provide to the commissioner the records and information required by the commissioner to confirm or rebut that belief.

(2) Subject to subsection (3), the commissioner may decide that a person performed some or all of the functions of a director of a corporation if 

(a) the person or the corporation that has been requested to provide records or information to the commissioner under subsection (1) fails or refuses to comply with the request within a period of time considered by the commissioner to be reasonable in the circumstances, or

(b) the records or information provided to the commissioner under this section confirm that the person performed some or all of the functions of a director of the corporation.

(3) The commissioner must not decide under subsection (2) (b) that a person performed some or all of the functions of a director of the corporation if the decision is based solely on

(a) the person participating in the corporation's management under the direction or control of a shareholder, one or more directors or a senior officer of the corporation,

(b) the person being a lawyer, accountant or other professional whose primary participation in the management of the corporation was the provision of professional services to the corporation,

(c) the corporation being bankrupt and the person being a trustee in bankruptcy who participates in the management of the corporation or exercises control over its property, rights and interests primarily for the purposes of the administration of the bankrupt's estate, or

(d) the person being a receiver, receiver manager or secured creditor who participates in the management of the corporation or exercises control over any of its property, rights and interests primarily for the purposes of enforcing a debt obligation of the corporation.

(4) Subject to subsection (5), if the commissioner decides under subsection (2) that a person performed some or all of the functions of a director of a corporation, the person is deemed to be a director of the corporation for the purposes of this Act for a term that equals the period the person performed those functions.

(5) Subsection (4) does not apply to sections 81 (b) and 122.

(6) Immediately after the commissioner makes a decision under subsection (2), the commissioner must notify in writing the person to whom the decision relates and the corporation of this decision.

Lien against property if taxes not collected, remitted or paid

103  (1) In this section:

"associated corporation" means a corporation that

(a) is associated with another corporation within the meaning of section 256 of the Income Tax Act (Canada), or

(b) is determined under subsection (11) to be associated with another corporation for the purposes of this section;

"collateral" has the same meaning as in the Personal Property Security Act;

"inventory" has the same meaning as in the Personal Property Security Act;

"proceeds" has the same meaning as in the Personal Property Security Act;

"property", when referring to the property of an "associated corporation" or a "related individual", means property that is used in, or in conjunction with, the business in respect of which the taxes referred to in subsection (2) are required to be collected and remitted;

"purchase money security interest" has the same meaning as in the Personal Property Security Act;

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

"secured party" has the same meaning as in the Personal Property Security Act;

"security interest" has the same meaning as in the Personal Property Security Act.

(2) If a person is required to collect and remit taxes, or to pay taxes, under this Act and does not collect, remit or pay the taxes, as the case may be, the commissioner may register a lien

(a) against the real property of

(i)  the person,

(ii)  an associated corporation of the person, or

(iii)  a related individual of the person

by registering a certificate of indebtedness in the prescribed form in the appropriate land title office in the same manner that a charge is registered under the Land Title Act, and

(b) against the personal property of

(i)  the person,

(ii)  an associated corporation of the person, or

(iii)  a related individual of the person

by designating the amount owing as a lien and entering the amount together with the date of the entry in an accounts receivable system maintained by the commissioner.

(3) On registration of a certificate of indebtedness against the real property of a person under subsection (2) (a), a lien is created on the real property against which the lien is registered for,

(a) if the lien relates to taxes that were required to be collected or were collected before registration, the amount of those taxes remaining uncollected or unremitted, or both, and any related interest and penalty on those taxes, or

(b) if the lien relates to taxes that were required to be paid before registration, the amount of those taxes remaining unpaid, and any related interest and penalty on those taxes.

(4) On registration of a lien against the personal property of a person under subsection (2) (b), a lien is created on the personal property in which the person has a legal or equitable interest, including, in the case of a lien referred to in paragraph (a) of this subsection, any portion of the property that is subject to a prior lien or security interest, for,

(a) if the lien relates to taxes that were required to be collected or were collected before registration, the amount of those taxes remaining uncollected or unremitted, or both, and any related interest and penalty on those taxes, or

(b) if the lien relates to taxes that were required to be paid before registration, the amount of those taxes remaining unpaid, and any related interest and penalty on those taxes.

(5) Subject to subsections (6) and (7), a lien, other than a lien referred to in subsection (4) (b), that is registered under subsection (2) (b) against personal property

(a) is not limited to the equity that the person against whose personal property the lien is registered has in the personal property, and

(b) despite the provisions of any other enactments, has priority over a security interest or other lien, whether or not the security interest or other lien existed before the lien was registered under subsection (2) (b).

(6) A lien registered under subsection (2) (b) against personal property does not have priority over

(a) a security interest that secures unpaid wages under section 87 (3) of the Employment Standards Act, regardless of when that security interest arises, or

(b) a purchase money security interest in collateral other than collateral that at the time the purchase money security interest attaches is inventory or its proceeds.

(7) If

(a) one or more liens are registered under subsection (2) (b) against the personal property of a person, and

(b) the property referred to in paragraph (a) is subject to

(i)  a security interest perfected under the Personal Property Security Act before the registration of the first lien under subsection (2) (b), or

(ii)  another lien created before the registration of the first lien under subsection (2) (b),

the total amount secured by all the liens registered under subsection (2) (b), other than liens referred to in subsection (4) (b), is limited in amount, with respect to all the prior security interests or other liens referred to in paragraph (b) of this subsection, to the amount of taxes remaining uncollected or unremitted, or both, that were required to be collected or were collected by the person for the 6 calendar months before the date of the most recent registration of a lien under subsection (2) (b).

(8) If a lien results from an estimate under section 115 or 116 and the estimate is for an amount that is different from the actual amount of the lien as established under subsections (3) and (4), the commissioner may correct the amount by registering a new lien in the revised amount and discharging the original lien, but for the purposes of subsection (7) the new registration is deemed to be registered at the same time as the registration it revises.

(9) Despite section 4, the commissioner must,

(a) on the oral or written request of a person, disclose in writing whether a lien is registered against the personal or real property of a named person, or

(b) on the written request of a person accompanied by the written consent of a named person, disclose in writing whether a lien is registered against the personal or real property of the named person and, if a lien is registered, the amount of the lien and the date of its registration.

(10) If the commissioner believes that one corporation is associated with another corporation within the meaning of section 256 of the Income Tax Act (Canada), the commissioner may request one or both of the corporations to provide to the commissioner the records and information required by the commissioner to confirm or rebut that belief.

(11) The commissioner may determine that the corporations are associated corporations for the purposes of this section if

(a) a corporation that has been requested to provide records or information to the commissioner under subsection (10) fails or refuses to comply with that request within a period of time considered by the commissioner to be reasonable in the circumstances, or

(b) the records or information provided to the commissioner under this section confirm the commissioner's belief that the corporations are associated.

(12) Immediately after a corporation is determined under this section to be associated with a person referred to in subsection (2) (a) (i) and (b) (i), the commissioner

(a) must notify the corporation of this in writing, and

(b) may register a lien under this section against the real and personal property of the corporation.

(13) The commissioner may seize personal property against which a lien is registered under subsection (12) at any time after the registration of the lien, but must not take any action to realize on those assets until the later of

(a) the date that is 90 days after the date on which the notice required under subsection (12) (a) was sent to the corporation, and

(b) if a notice of appeal is served on the minister in respect of the determination within the time provided by section 118 (2), the date on which the minister upholds the determination under that appeal.

(14) If, at any time, the commissioner becomes convinced that the corporations were not associated within the meaning of the section 256 of the Income Tax Act (Canada) at the time that the lien was registered under subsection (12) (b) of this section or the minister or a court of competent jurisdiction upholds the corporation's appeal against the commissioner's determination on the basis that the corporations were not associated at the time that the lien was registered, the commissioner must,

(a) if the commissioner has not realized on any of the assets against which the lien was registered, promptly release the lien, and

(b) if the commissioner has realized on some or all of the assets against which the lien was registered, promptly release the lien against the remaining assets and pay the proceeds realized from the sale of the realized assets minus any costs or expenses incurred in the sale

(i)  to the corporation, or

(ii)  if the commissioner considers it appropriate to do so, into the Supreme Court under Rule 10-3 of the Supreme Court Civil Rules.

(15) The release of the lien under subsection (14) (a) or the release of the lien and payment of the applicable net sale proceeds under subsection (14) (b) is deemed to be full satisfaction of all claims any person, including the corporation, might have arising out of or in any way connected with the determination made under subsection (11), the registration of the lien or the seizure or sale of any or all of the assets against which the lien was registered.

Responsibility of person having control of collector's property

104  (1) This section applies to a person who, as assignee, liquidator, administrator, receiver, receiver manager, trustee, secured party as defined in section 103 or similar person, other than a trustee appointed under the Bankruptcy and Insolvency Act (Canada), takes control or possession of the property of a person who has collected or is required to collect the tax under this Act.

(2) Before distributing the property referred to in subsection (1), or the proceeds from the realization of it, a person to whom this section applies must obtain from the commissioner a certificate that the amount that constituted a lien registered under section 103 (2) has been paid or that security acceptable to the minister has been given.

(3) If a person to whom this section applies distributes the property referred to in subsection (1), or the proceeds of the realization of it, without having obtained the certificate required by subsection (2), the person is personally liable to the government for an amount equal to the amount of tax and related interest and penalty required to be paid to obtain the certificate.

Notice to taxpayer before taking proceedings

105  (1) Before taking proceedings for the recovery of an amount owing under this Act, the commissioner must give to the person who owes the amount notice of the commissioner's intention to enforce payment.

(2) Failure to give notice under subsection (1) does not affect the validity of proceedings taken for the recovery of an amount owing under this Act.

Recovery of taxes due or collected by court action

106  The amount of taxes that are due and payable under this Act or that have been collected on behalf of the government may be recovered by action in any court as for a debt due to the government, and the court may make an order as to the costs of the action in favour of or against the government.

Commissioner's certificate equivalent to court order

107  (1) If default is made in the payment of a penalty or of taxes that are due and payable under this Act or that have been collected on behalf of the government, or for any part, the commissioner may

(a) issue a certificate stating the amount due, the amount remaining unpaid, including interest and penalties, and the name of the person by whom it is payable, and

(b) file the certificate with a district registrar of the Supreme Court.

(2) When filed, the certificate is of the same force and effect, and all proceedings may be taken on it, as if it were a judgment of the court for the recovery of a debt of the amount stated in the certificate against the person named in it.

Attachment of amounts to be paid to person liable for tax

108  (1) In this section, "taxpayer" includes a person who is deemed to be an agent for the minister under section 93 (1) and a director who is jointly and severally liable with a corporation under section 102.1 (1).

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

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

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

(a) personal service,

(b) registered mail, or

(c) electronic mail or fax.

(4) If under this section the commissioner demands that a person pay to the commissioner, on account of a taxpayer's liability under this Act, money otherwise payable by that person to the taxpayer as interest, rent, remuneration, a dividend, an annuity or other periodic payment, the demand

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

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

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

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

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

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

(6) Unless it is satisfied earlier, a demand under this section continues in effect as follows:

(a) until 3 years after the demand is served, if it is made in respect of an outstanding legal claim or insurance claim that, if resolved in the taxpayer's favour, will result in money becoming available to the taxpayer;

(b) until 90 days after the demand is served, in any other case.

(7) Despite subsection (6), if a demand is made in respect of a periodic payment referred to in subsection (4), the demand continues in effect until it is satisfied unless no periodic payment is made or is liable to be made within 90 days after the demand is served, in which case the demand ceases to have effect at the end of that period.

(7.1) Money demanded from a person by the commissioner under this section becomes payable

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

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

(8) A person who fails to comply with a demand under subsection (2) or (4) is liable to pay to the government an amount equal to the amount that the person was required under subsection (2) or (4), as applicable, to pay to the commissioner.

(9) A person who fails to comply with a demand under subsection (3) is liable to pay to the government an amount equal to the lesser of

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

(b) the amount that the person was required under subsection (3) to pay to the commissioner.

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

(11) Money paid by any person to the commissioner in compliance with a demand under this section is deemed to have been paid by that person to the taxpayer.

(12) If a person carries on business under a name or style other than the person's own name, the demand under subsection (2), (3) or (4) may be addressed to the name or style under which the person carries on business and, in the case of personal service, is deemed to have been validly served if it was left with an adult person employed at the place of business of the addressee.

(13) If persons carry on business in partnership, the demand under subsection (2), (3) or (4) may be addressed to the partnership name and, in the case of personal service, is deemed to have been validly served if it was served on one of the partners or left with an adult person employed at the place of business of the partnership.

Limitation period

109  (1) In this section, "proceeding" means

(a) an action for the recovery of taxes,

(b) the filing of a certificate,

(c) the making of a demand, and

(d) the registration or enforcement of a lien

under this Act.

(2) A proceeding may be commenced at any time within 7 years after the date of an assessment or re-assessment of the amount claimed in the proceeding.

(3) Despite subsection (2), a proceeding that relates to a contravention of this Act or the regulations and that involves willful default or fraud may be commenced at any time.

Repealed

110  [Repealed 2010-5-151.]

Exercise of powers for recovery of taxes or collections

111  (1) The powers conferred by this Act for the recovery of taxes or money collected as taxes, by action in court and by filing a certificate, may be exercised separately, concurrently or cumulatively.

(2) The liability of a person for the payment of tax under this Act, the liability of a person under section 102.1 (1) or the liability to remit taxes collected is not affected in any way by the fact that a fine or penalty has been imposed on or paid by the person in respect of a contravention of this Act.

Repealed

112  [Repealed 2010-5-151.]

Division 2 — Collection Agents

Definitions

112.1  In this Division:

"collection agent" means a customs officer and, if an agreement is in force between the Minister of National Revenue for Canada and the Canada Post Corporation providing for the collection of tax under this Division by that corporation, includes a postal agent;

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

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

"resident taxpayer" means an individual who

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

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

(i)  by the individual,

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

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

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

Repealed

112.2  [Repealed 2010-5-151.]

Repealed

112.3  [Repealed 2010-5-151.]

Repealed

112.4  [Repealed 2010-5-151.]

Tax payable even though exemption claimed

112.5  (1) If a resident taxpayer claims that tangible personal property is exempt under Part 3 from the tax payable under this Division, the collection agent may nevertheless require that the resident taxpayer pay the tax.

(2) If the collection agent requires payment of the tax under subsection (1), the resident taxpayer

(a) must pay the tax to the collection agent, and

(b) may apply to the Minister of National Revenue for Canada, in that minister's capacity as agent for the government of British Columbia, for a refund of the tax paid in respect of that tangible personal property.

Agreement with federal government

112.6  (1) The minister may, on behalf of the government, enter into an agreement with the government of Canada respecting the administration and enforcement of this Act in respect of tangible personal property that is

(a) brought or sent into British Columbia from outside Canada by a resident taxpayer, or

(b) delivered in British Columbia from outside Canada to a resident taxpayer.

(2) An agreement referred to in subsection (1) may authorize payment to the government of Canada in respect of services provided under the agreement.

(3) Payments in respect of the ongoing costs of services provided under the agreement may be paid out of the amounts collected on behalf of the government of British Columbia.

(4) The government of Canada may, as agent of the government of British Columbia, act in accordance with the agreement to

(a) collect tax owing in respect of tangible personal property that is released by a collection agent without payment of all or part of the tax imposed by this Division, and

(b) refund an amount charged or collected by a collection agent that is in excess of the amount of tax payable in respect of the tangible personal property.

(5) An agreement made under subsection (1) must specify the circumstances under which the collection agent may require that a resident taxpayer claiming an exemption from tax must nevertheless pay the tax to the collection agent.

Immunity of collection agent

112.7  No action for damages may be brought against a collection agent because of anything done or omitted in good faith

(a) in the performance or intended performance of a duty or function under this Act or under an agreement described in section 112.6, or

(b) in the exercise or intended exercise of a power under this Act or under an agreement described in section 112.6.

Part 6 — Inspections, Audits and Assessments

Inspection and audit powers

113  (1) The commissioner may appoint persons for the purposes of this section.

(2) Except as limited by subsection (4), a person appointed under subsection (1) may enter at any reasonable time the business premises occupied by a person, or the premises where the records of the person are kept, in order to

(a) determine whether this Act and the regulations are being or have been complied with,

(b) inspect, audit and examine books of account or other records, or

(c) ascertain the quantities of tangible personal property on hand or sold or leased by the person.

(3) A person occupying premises referred to in subsection (2) must produce all books of account or other records as may be required by a person appointed under subsection (1) for the purposes of that subsection and must answer all questions of that person regarding the matters referred to in that subsection.

(4) The power to enter a place under subsection (2) must not be used to enter a dwelling occupied as a residence without the consent of the occupier except under the authority of a warrant under subsection (5).

(5) On being satisfied by evidence on oath that there are in a place records or other things for which there are reasonable grounds to believe that they are relevant to the matters referred to in subsection (2), a justice may issue a warrant authorizing a person named in the warrant to enter the place in accordance with the warrant in order to exercise the powers referred to in subsection (2) (a) to (c).

(6) A person must not

(a) hinder, molest or interfere with a person doing anything that the person is authorized to do under this section, or

(b) prevent or attempt to prevent a person from doing anything that the person is authorized to do under this section.

Search warrant may be issued if tax not paid

114  (1) A justice who is satisfied by information on oath that there is reasonable ground for believing that a person has in the person's possession tangible personal property in respect of the consumption or use of which the tax payable has not been paid may at any time issue a warrant under the justice's signature authorizing the commissioner or other official appointed by the commissioner named in it to enter and search any building, receptacle or place where the tangible personal property is believed to be situated and to make inquiries considered necessary.

(2) The person believed to possess tangible personal property on which tax has not been paid must produce for inspection by the person named in the warrant any tangible personal property in the first person's possession and answer any questions relating to it.

(3) A person must not

(a) refuse to answer questions put to the person under this section respecting the tangible personal property kept on hand on the premises, or

(b) fail to produce for inspection any books of account, records or documents, or any parcel, box, carton, barrel, tank or other receptacle in the person's possession or under the person's control, that the person is required to produce for inspection.

Assessments

115  (1) If it appears that an amount of tax should have been but was not paid by a purchaser, lessee or other person liable for tax under this Act, the commissioner may assess the purchaser, lessee or other person for the amount of tax payable.

(2) If it appears from an inspection, audit or examination of the books of account, records or documents that this Act or the regulations have not been complied with,

(a) the person making the inspection, audit or examination must calculate the tax collected or due in a manner and form and by a procedure the commissioner considers adequate and expedient, and

(b) the commissioner must assess the person for the amount of the tax calculated.

(2.1) The commissioner must not make an assessment under this section if the tax due is tax payable by a person whom the commissioner is satisfied is eligible for a prescribed refund.

(3) The commissioner must not make an assessment under this section in respect of a tax liability or an obligation to collect or remit tax that arose, or an excess refund that was paid, more than 4 years before the date of the first notice of assessment.

(4) Despite subsection (3), the commissioner may consider and include any period in making an assessment under this section, if the assessment relates to a contravention of this Act or the regulations that involves wilful default or fraud.

(4.1) If it appears from an inspection, audit or examination or from other information available to the commissioner that a person has received a refund of tax under this Act that was in excess of the refund amount that was due to the person, the commissioner must make an assessment against the person in an amount equal to the excess amount refunded plus interest calculated at the rate and in the manner prescribed.

(5) If it appears that an amount of tax should have been but was not collected, the commissioner must impose a penalty, which forms part of the lien provided for in section 103, against the person who should have collected the tax, consisting of both

(a) an amount equal to the amount of tax that should have been collected, and

(b) interest calculated at the rate and in the manner prescribed.

(5.01) The commissioner must not impose a penalty under subsection (5) if the tax that was not collected is tax payable by a person whom the commissioner is satisfied is eligible for a prescribed refund.

(5.1) In prescribed circumstances, the commissioner must impose a penalty against a person who has certified incorrect information in a certification required under the regulations in relation to an exemption claimed by another person under section 76 (1) (k), consisting of both

(a) an amount equal to the amount of tax that was not paid in reliance on the certification, and

(b) interest calculated at the rate and in the manner prescribed.

(5.2) If the commissioner has imposed a penalty under subsection (5.1), the commissioner may not make an assessment under subsection (1) against the person who claimed the exemption in reliance on the certification provided by the person against whom the penalty under subsection (5.1) was imposed.

(6) The commissioner,

(a) if imposing a penalty under subsection (5), must not consider a period greater than 3 years, and

(b) if imposing a penalty under subsection (5.1), must not consider a period greater than 4 years.

(7) A person who has paid an amount imposed under subsection (5) may, in a court of competent jurisdiction, sue the person who was liable to pay the tax in order to recover the amount imposed under subsection (5), and any amounts recovered in the action may be retained by the plaintiff as compensation for the amount paid under subsection (5).

(8) Despite subsection (3) or (6), the commissioner may enter into a written agreement with a person in which the person waives subsection (3) or (6), or both, and allows the commissioner, in making an assessment or imposing a penalty, to consider and include any period specified in the agreement.

Assessment against a director

115.1  (1) If the commissioner decides that a director of a corporation is jointly and severally liable for an amount under section 102.1 (1), the commissioner may assess the director for

(a) the amount assessed under section 115 against the corporation for the corporation's failure to collect or remit taxes as required during the term of the director, including penalties and interest on that amount, and

(b) the amount estimated under section 116 as the tax the corporation collected during the term of the director, including penalties and interest on that amount.

(2) The commissioner must not make an assessment under subsection (1) in respect of the liability of a director of a corporation under section 102.1 if

(a) the person is no longer a director of the corporation, and

(b) it is more than 2 years after the last date that the person was a director of the corporation.

Determination of tax collected

116  (1) If

(a) a person who has sold or, as lessor, has leased tangible personal property fails to make a return or remittance as required under this Act, or

(b) the returns of a person referred to in paragraph (a) are not substantiated by the person's records,

the commissioner may make an estimate of the amount of the tax collected by that person for which the person has not accounted.

(2) The amount estimated under subsection (1) is deemed to be the tax collected by the person in relation to whom the estimate is made, and that person must pay the amount to the government.

(3) The commissioner may give written notice, either by mailing to or service on

(a) a person referred to in subsection (1) (a),

(b) the heirs, administrators, executors or assigns of a person referred to in subsection (1) (a), or

(c) the custodian or trustee in bankruptcy of a person referred to in subsection (1) (a),

requiring that the amount estimated under subsection (1) be paid to the commissioner or otherwise accounted for within 23 days from the date the notice is mailed or served.

(4) In making an estimate under this section the commissioner must not consider or include a period greater than 4 years before the date of the first notice of estimate.

(4.1) Despite subsection (4), the commissioner may enter into a written agreement with a person in which the person waives subsection (4) and allows the commissioner, in making an estimate, to consider and include any period specified in the agreement.

(5) Despite subsection (4), the commissioner may consider and include any period in making an estimate under this section, if the estimate relates to a contravention of this Act or the regulations that involves wilful default or fraud.

(6) [Repealed 2003-23-85.]

(7) An estimate made by the commissioner under this section must not be varied or disallowed because of any irregularity, informality, omission or error on the part of any person in the observation of any directory provision up to the date of the issuing of the notice of the estimate.

Assessments, estimates and penalties

116.1  (1) Evidence that an assessment or estimate has been made or a penalty has been imposed under this Act is proof, in the absence of evidence to the contrary, that the amount stated in the assessment or estimate or imposed as a penalty is due and owing, and the onus of proving otherwise is on the person liable to pay the amount estimated, assessed or imposed.

(2) Subject to being amended, changed or varied on appeal or by reassessment, an assessment, estimate or penalty made or imposed under this Act is valid and binding despite any error, defect or omission in the assessment, estimate or penalty or in procedure.

Penalty and interest

117  (1) In addition to any other penalty, the commissioner may, if satisfied that

(a) a person wilfully failed to remit tax collected as required by this Act or the regulations, assess against the person a penalty equal to 100% of the amount not remitted,

(b) a person evaded the payment of tax by wilfully making a false or deceptive statement or by wilful default or fraud, assess against the person a penalty equal to 25% of the amount evaded, or

(c) in any case, a person failed to remit or pay any tax as required by this Act or the regulations, assess against the person a penalty equal to 10% of the amount not remitted or paid.

(2) The commissioner may, at any time,

(a) whether or not a penalty has been assessed under subsection (1), and

(b) in respect of any period during which tax under this Act ought to have been remitted or paid,

assess interest, calculated at the rate and in the manner prescribed, on the amount of taxes not remitted or paid as required under this Act.

(3) The penalty and interest under this section form part of the lien provided for in section 103.

Part 7 — Appeals

Appeal to minister

118  (1) If a person

(a) disputes a decision of the commissioner under section 5 (2), 7 (2), 54 (3), 80 to 90, 90.5, 102.2 (2) or 103 (11) or a determination of the commissioner under section 4.1 or 4.84,

(a.1) [Repealed 2010-5-153.]

(b) disputes an assessment made under section 115 (1), (2) or (4.1) or 115.1 (1),

(c) disputes a penalty or interest imposed under section 115 (5) or 117,

(d) disputes liability for the amount stated in a notice given under section 116 (3), or

(e) disputes a disallowance of a refund applied for under section 112.5,

the person or the person's agent may appeal to the minister in accordance with this section.

(2) An appeal under this section must be made by serving a notice of appeal on the minister within 90 days after the date of the notice of the assessment, liability, penalty or decision.

(3) The notice of appeal must

(a) be in writing,

(b) be addressed to the minister at Victoria, and

(c) set out clearly the reasons for the appeal and all facts relative to it.

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

(a) consider the matter,

(b) affirm, amend or change the assessment, decision, estimate, interest charge, penalty or the nature of the assessment, and

(c) promptly notify the appellant in writing of the result of the appeal.

Appeal to court

119  (1) A decision of the minister under section 118 (4) may be appealed to the Supreme Court by way of a petition proceeding.

(2) The Supreme Court Civil Rules relating to petition proceedings apply to appeals under this section, but Rule 18-3 of those rules does not apply.

(3) A petition commencing an appeal under this section must be filed in the court registry within 90 days after the date on the minister's notification of decision.

(4) Within 14 days after the filing of the petition under subsection (3), the petition must be served on the government in accordance with section 8 of the Crown Proceeding Act and the government must be designated "Her Majesty the Queen in right of the Province of British Columbia".

(4.1) An appeal under this section is a new hearing that is not limited to the evidence and issues that were before the minister.

(5) 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.

(6) An appeal lies from a decision of the court to the Court of Appeal with leave of a justice of the Court of Appeal.

Collection of taxes unaffected by pending appeals

120  (1) Neither the giving of a notice of appeal by a person nor a delay in the hearing of the appeal

(a) affects the due date, the interest or penalties or any liability for payment provided under this Act in respect of taxes due and payable or that have been collected on behalf of the government that are the subject matter of the appeal, or

(b) delays the collection of the interest, penalties or liability referred to in paragraph (a).

(2) If a decision of the commissioner or the minister is set aside or the amount of an estimate, assessment or penalty is reduced on appeal, the commissioner must refund from the consolidated revenue fund

(a) the amount or excess amount paid, and

(b) any additional interest or penalty imposed and paid.

Part 8 — Offences

General offence rule of Offence Act does not apply

121  Section 5 of the Offence Act does not apply to this Act or the regulations.

Liability of corporation officers

122  If a corporation is guilty of an offence against this Act, and if an officer, director, employee or agent of the corporation directed, authorized, assented to, acquiesced or participated in the commission of the offence, that person is a party to and guilty of the offence.

Offences

123  (1) and (2) [Repealed 2000-22-73.]

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

(a) makes or participates in, or assents to or acquiesces in the making of, a false or deceptive statement in a return, certificate or form required to be made or filed under this Act;

(b) to evade remittance of tax the person has collected, destroys, alters, mutilates, secretes or otherwise disposes of a record or book of accounts of a vendor or lessor;

(c) makes, or assents to or acquiesces in the making of, a false or deceptive entry in a record or book of accounts of a purchaser, lessee, vendor or lessor;

(d) omits, or assents to or acquiesces in the omission, to enter a material particular in a record or book of accounts of a purchaser, lessee, vendor or lessor;

(d.1) refuses to produce records or books of account or hinders or molests or interferes with an inspection, audit or examination or prevents or attempts to prevent a person from carrying out an inspection, audit or examination under this Act;

(e) wilfully, in any manner, fails to comply with this Act or the regulations;

(f) wilfully, in any manner, evades or attempts to evade compliance with this Act or the regulations or remittance or payment of taxes required by this Act or the regulations;

(g) conspires with any person to do anything described in paragraphs (a) to (f).

(4) A person who commits an offence under subsection (3) is liable

(a) to a fine of not more than $10 000 or to imprisonment for not more than 2 years or to both fine and imprisonment, and

(b) in addition, to a fine equal to the amount of any tax not collected, remitted or paid, including any penalties and interest, as determined under subsection (5).

(5) The commissioner must determine the amount of the tax referred to in subsection (2) or (4) (b) from information available to the commissioner, and must issue a certificate as to the amount.

(6) In a prosecution under subsection (2) or (3), a certificate signed or purported to be signed by the commissioner stating the amount of tax, penalties and interest referred to in subsection (4) (b) is evidence of the amount of tax, penalties and interest referred to in that subsection.

(7) A person who contravenes section 4 commits an offence and is liable to a fine of not more than $2 000.

(8) and (9) [Repealed 2010-5-154.]

Onus of proof

124  In a prosecution for failure to pay the tax or to collect or forward the tax, the onus of proving that the tax was paid, collected or forwarded, as applicable, to the commissioner is on the defendant.

Prosecution evidence

125  (1) In a prosecution brought against a vendor or lessor who is required to register under this Act, the application form of the vendor or lessor is evidence that the person charged is a vendor or lessor registered under this Act, and the person's return form is evidence that the person collected tax.

(2) If a vendor or lessor is described as a partnership on the application form, the application form is evidence that the persons named on it are partners registered as such under this Act, and the return form is evidence that the partnership firm collected the tax.

Information or complaint may relate to more than one offence

126  (1) An information or complaint in respect of an offence under this Act may be for one or more than one offence.

(2) An information, complaint, warrant, conviction or other proceeding in a prosecution under this Act is not objectionable or insufficient because it relates to 2 or more offences.

Limitation period for laying charge

127  (1) An information or complaint in respect of an offence against this Act must be laid or made within 6 years after the matter of the information or complaint arose.

(2) [Repealed 2010-5-154.]

Part 9 — Regulations

General regulation making authority

128  (1) The Lieutenant Governor in Council may make regulations that are considered necessary or advisable

(a) for the purpose of carrying into effect this Act according to its intent and of supplying any deficiency in it, and

(b) for the purpose of relaxing the strictness of the law relative to the incidence or the collection of any of the taxes under this Act, in cases where, without relaxation, great public inconvenience or great hardship or injustice to persons could not be avoided.

(2) The authority to make regulations under another provision of this Part does not limit subsection (1).

(3) [Repealed 2000-22-74.]

(4) A regulation made under this Part may be made retroactive to May 1, 2010 or a later date, and if made retroactive is deemed to have come into force on the specified date.

Regulations exempting specified persons

129  The Lieutenant Governor in Council may make regulations exempting one or more of the following classes of persons from all the taxes under Divisions 1 to 8 of Part 2, subject to any terms and conditions the Lieutenant Governor in Council specifies:

(a) diplomatic agents of a diplomatic mission situated in Canada who are citizens of the country operating the diplomatic mission;

(b) senior officials of United Nations' agencies situated in Canada who have been accorded diplomatic privileges by the Department of External Affairs of the government of Canada;

(c) career consular officers of a consular post situated in British Columbia, or of a consular post situated elsewhere in Canada but accredited in British Columbia, who are citizens of the country operating the consular post;

(d) administrative and support staff of consular posts situated in British Columbia who are citizens of the country operating the consular post;

(e) spouses of the persons referred to in paragraphs (a) to (d);

(f) a corporation established under the University Foundations Act or the corporation established under the Trinity Western University Foundation Act;

(g) and (h) [Repealed 2002-25-66.]

(i) the corporation or the committee established under the First Peoples' Heritage, Language and Culture Act.

Regulations in relation to vehicles and other conveyances

130  The Lieutenant Governor in Council may make regulations as follows:

(a) prescribing vehicles that are included and vehicles that are not included within the meaning of passenger vehicle;

(a.1) prescribing the circumstances in which a vehicle is a short term rental vehicle;

(b) prescribing formulas for calculating the proportion of the amount of tax otherwise payable under Division 1 of Part 2 that is payable by motor dealers on motor vehicles purchased by them primarily for resale or lease and used in a prescribed manner before resale or lease;

(b.1) prescribing, in respect of motor vehicles that have been modified to adapt them to facilitate the use by, or the transportation of, an individual using a wheelchair, the method by which the purchase price, lease price or tax rate value of those vehicles may be determined, and the criteria on which and the circumstances in which the prescribed method of calculation may be made;

(c) for the purpose of calculating the tax payable under section 11 (3) or 21 (2) by persons using fleets of aircraft, vessels, railway rolling stock or other conveyances in interprovincial or international trade for the commercial carriage of passengers or goods, prescribing formulas

(i)  that are based on the use of those fleets in British Columbia, and

(ii)  that those persons may choose to use instead of the formulas applied under sections 13 (2) to (6) and 21 (4) and (5);

(d) providing that tax calculated in accordance with a formula prescribed for a fleet be paid in a different manner or at different times from those provided in sections 13 (7) and (8), 14, 15, 21, 23, 24 and 96;

(e) [Repealed 2010-5-157.]

(f) prescribing the manner in which and the conditions on which the commissioner may provide a refund or credit under Division 3 of Part 2 and the manner by which the amount of that refund or credit is to be determined;

(g) [Repealed 2010-5-157.]

(h) prescribing alternative fuel vehicles for the purposes of sections 6, 20 and 75 (2);

(i) establishing for the purposes of section 6 or 20 a tax rate for alternative fuel vehicles, including different tax rates for different classes of alternative fuel vehicles;

(j) prescribing tax reductions under section 75 (2), including different reductions for different classes of alternative fuel vehicles;

(k) prescribing fuel-efficient vehicles for the purposes of section 75 (3);

(l) prescribing tax reductions under section 75 (3), including different reductions for different classes of fuel-efficient vehicles.

Regulations in relation to taxable services

131  The Lieutenant Governor in Council may make regulations in relation to taxable services as follows:

(a) prescribing tangible personal property for the purposes of paragraph (b) of the definition of "taxable service" in section 1, subject to the terms and conditions the Lieutenant Governor in Council specifies;

(b) prescribing taxable services or classes of taxable services in relation to which no tax is payable under section 42 (2) (a), subject to the terms and conditions the Lieutenant Governor in Council specifies;

(c) prescribing one or more classes of persons for the purposes of section 42 (2) (b), subject to the terms and conditions the Lieutenant Governor in Council specifies.

Regulations in relation to legal services

132  The Lieutenant Governor in Council may make regulations in relation to legal services as follows:

(a) prescribing specified fees and charges in relation to legal services as excluded from the purchase price of the legal services;

(b) prescribing specified disbursements in relation to legal services as disbursements to be included in the purchase price of the legal services;

(c) prescribing legally related services as legal services;

(d) prescribing matters that relate to British Columbia as matters in relation to which tax is to be paid under section 46 (2);

(e) prescribing restrictions, conditions or requirements in relation to estimates under section 47 (4);

(f) prescribing exemptions from tax under section 46 or 47 in relation to specified legal services, subject to any terms and conditions the Lieutenant Governor in Council specifies;

(g) prescribing exemptions from tax under section 46 or 47 in relation to legal services provided to one or more persons or classes of persons, subject to any terms and conditions the Lieutenant Governor in Council specifies.

Regulations in relation to telecommunications

133  The Lieutenant Governor in Council may make regulations in relation to telecommunications as follows:

(a) prescribing transmissions, emissions or receptions or classes of transmissions, emissions or receptions for the purposes of the definition of "telecommunication" in section 1;

(b) prescribing telecommunication services or classes of telecommunication services for the purposes of section 56 (c), subject to the terms and conditions the Lieutenant Governor in Council specifies;

(c) prescribing one or more classes of persons for the purposes of section 56 (d), subject to the terms and conditions the Lieutenant Governor in Council specifies.

Regulations in relation to parking rights

134  The Lieutenant Governor in Council may make regulations in relation to parking rights as follows:

(a) prescribing parking sites or classes of parking sites for the purposes of section 61 (5) (b), subject to the terms and conditions the Lieutenant Governor in Council specifies;

(b) prescribing one or more classes of persons for the purposes of section 61 (5) (c), subject to the terms and conditions the Lieutenant Governor in Council specifies;

(c) [Repealed 2002-19-35.]

(d) respecting any matter or thing that the Lieutenant Governor in Council considers necessary for the collection and remittance of the tax payable to the South Coast British Columbia Transportation Authority under section 61  (1) and (2).

Repealed

135  [Repealed 2010-5-157.]

Regulations in relation to Innovative Clean Energy Fund levies

135.1  (1) The Lieutenant Governor in Council may make regulations in relation to section 68.01 [Innovative Clean Energy Fund levy] as follows:

(a) prescribing tangible personal property as an energy product;

(b) excluding tangible personal property from the definition of "energy product";

(c) prescribing rates for a levy under the section;

(d) establishing reporting requirements for the purposes of subsection (8) of the section;

(e) prescribing a maximum amount and period of time for the purposes of subsection (9) of the section;

(f) exempting one or more classes of persons or purchases from the levy under the section, subject to any terms and conditions established by the regulation;

(g) providing that a levy under that section no longer applies in relation to an energy product.

(2) Regulations under subsection (1) may be different for one or more of the following:

(a) different energy products;

(b) different classes of persons;

(c) different classes of use of energy products;

(d) different classes of distribution or delivery of energy products.

Regulations in relation to refunds

135.2  (1) For the purposes of section 90.5 [refunds authorized or required under regulations], the Lieutenant Governor in Council may make regulations providing for a refund of all or part of the tax paid, including, without limitation, regulations doing one or more of the following:

(a) permitting or requiring the payment of a refund to a person or a class of persons;

(b) establishing circumstances in which a refund may or must be paid;

(c) setting conditions of, or limitations on, the payment of a refund.

(2) In making a regulation 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) make different regulations for different persons or refunds or different classes of persons or refunds.

Regulations in relation to claims of solicitor client privilege

136  (1) This section applies in relation to records

(a) that are in the possession of a lawyer and that are about to be inspected, audited or examined under this Act or about to be seized under a warrant in relation to an offence under this Act, and

(b) for which the lawyer at that time makes a claim of solicitor client privilege for a named client of the lawyer in relation to the record.

(2) The Lieutenant Governor in Council may make regulations in relation to records referred to in subsection (1) as follows:

(a) establishing procedures for allowing a record to be retained or seized and to be held in a secure manner until

(i)  the claim of solicitor client privilege is waived by the client, or

(ii)  the claim is determined, or the record is otherwise dealt with, on application to the Supreme Court in accordance with the regulations;

(b) establishing a right to apply to the Supreme Court to resolve a claim of solicitor client privilege regarding a record retained or seized under paragraph (a) and establishing how the court is to deal with such an application.

Regulations specifying tax for coin-operated purchases

137  (1) The Lieutenant Governor in Council may make regulations specifying the amount of tax payable on a purchase referred to in subsection (2).

(2) Despite any other section in this Act, if the purchase price for tangible personal property, a service or a right that is taxable under this Act is to be paid by coin or other legal tender because of the equipment by or through which the purchase is made, the Lieutenant Governor in Council may, by regulation, specify the amount of tax payable on the purchase in an amount that is equal to or less than the amount that would otherwise be payable under this Act.

Other regulations

138  (1) The Lieutenant Governor in Council may make regulations doing one or more of the following:

(a) defining any expression used but not defined in this Act;

(b) prescribing the forms and records to be used for this Act or the regulations;

(c) prescribing the method of collection and remittance of taxes under this Act and any other conditions or requirements affecting collection and remittance, which methods, conditions or requirements may be different for different classes of persons;

(c.1) in relation to the definition of "sale" in section 1, prescribing the circumstances in which the provision of tangible personal property is merely incidental to a contract for the provision of services;

(c.11) prescribing circumstances for the purposes of paragraph (e) of the definition of "sale" in section 1;

(c.2) prescribing tangible personal property for the purposes of paragraph (f) of the definition of "purchase price" under section 1;

(c.3) prescribing the amount of the single price for the purposes of paragraph (f.1) (i) of the definition of "purchase price" under section 1;

(c.4) [Repealed 2010-5-160.]

(d) determining the remuneration and conditions of it to be paid to vendors and lessors, and to persons who are required to collect tax under section 93 (1.1), for collecting and forwarding taxes under this Act to the government;

(e) prescribing the form and manner of records to be kept by manufacturers and others under section 98;

(e.1) prescribing, for the purposes of section 12 (3) (a), the number of days during which tangible personal property may be within British Columbia without attracting tax under section 12, including different numbers of days for different classes of tangible personal property;

(f) exempting from tax under section 20 to 24 or 25 tangible personal property described in section 13 (1) (a) or (b) that was sold to a lessor by a lessee under a sale and immediate lease-back arrangement and specifying the terms and conditions of exemption;

(f.1) exempting from tax under section 11 household goods or equipment initially brought into British Columbia for an individual's personal use and specifying the terms and conditions of the exemption;

(g) prescribing tangible personal property that is not included within the meaning of "prototype" as defined in section 1;

(g.1) prescribing the circumstances under which used boom gear is exempt from taxes imposed by sections 5 to 25;

(g.2) prescribing

(i)  work related safety equipment and apparel for the purposes of section 71 (k),

(ii)  circumstances when prescribed work related safety equipment and apparel is exempt under that section, and

(iii)  requirements for claiming the exemption and for substantiating non-collection of tax on the sale of exempt equipment;

(iv)  [Repealed 2010-5-160.]

(h) prescribing tangible personal property that is not eligible for exemption under section 76 (1) (d);

(i) [Repealed 2001-34-30.]

(j) prescribing tangible personal property for the purposes of section 74 (e), and specifying terms and conditions of the exemption;

(j.1) requiring, in prescribed circumstances, that a refund be paid to prescribed persons for tax paid on or in respect of tangible personal property prescribed as exempt under paragraph (j);

(j.2) requiring, in prescribed circumstances, that a refund be paid out of the consolidated revenue fund to prescribed persons for tax paid on or in respect of tangible personal property formerly prescribed as exempt under paragraph (j);

(k) prescribing tangible personal property to which Division 2 of Part 5 does not apply;

(l) prescribing interest rates and the manner of calculating interest for the purposes of this Act;

(m) determining, for the purposes of the definitions of "magazines", "newspapers" and "periodicals",

(i)  the content of a publication that is to be included as technical, literary, editorial or pictorial content,

(ii)  the content of a publication that is to be included as advertising or promotional content,

(iii)  the content of a publication that is to be included as editorials, news and articles of local or common interest, and

(iv)  the rules for calculating the percentage content of a publication;

(n) prescribing types of fixtures that are not included in the meaning of tangible personal property, as defined in section 1;

(n.1) prescribing the circumstances in which, and the terms and conditions on which, heat is exempt from taxation imposed by one or more of sections 5 to 25;

(o) prescribing types of publications that are not included in the meaning of magazines, periodicals and newspapers, as defined in section 1;

(o.1) prescribing the time and manner of payment of tax payable under section 68.21 (3);

(p) prescribing conditions or limitations for the purpose of section 69.1;

(p.1) respecting the exemption for chemical substances, catalysts and direct agents under section 76 (1) (b), including regulations identifying chemical substances that qualify or do not qualify for the exemption;

(q) for the purposes of section 76 (1) (k),

(i)  prescribing what constitutes a manufacturer,

(ii)  prescribing manufacturers or classes of manufacturers, or persons or classes of persons, who may or may not purchase or lease machinery or equipment that is exempt from tax,

(iii)  prescribing machinery or equipment or classes of machinery or equipment that qualify for a tax exemption or do not qualify for a tax exemption, with power to prescribe different machinery or equipment or classes of machinery or equipment in relation to different manufacturers or classes of manufacturers or persons or classes of persons,

(iv)  prescribing how machinery or equipment or classes of machinery or equipment must or must not be used to qualify for a tax exemption, with power to prescribe different uses in relation to

(A)  different machinery or equipment or classes of machinery or equipment, and

(B)  different manufacturers or classes of manufacturers or persons or classes of persons,

(v)  prescribing any matter or other thing, or amending any provision of the regulations, that may be required to carry out the intent of the exemption,

(vi)  exempting from taxes imposed by sections 5 to 25 parts or materials or classes of parts or materials related to machinery or equipment, with power to prescribe by whom parts or materials or classes of parts or materials must be purchased, and for what purpose parts or materials or classes of parts or materials must be used, in order to qualify for the exemption,

(vii)  exempting from taxes imposed by sections 5 to 25 taxable services related to machinery or equipment, and

(viii)  prescribing the circumstances in which the commissioner must impose a penalty under section 115 (5.1);

(q.1) prescribing, for the purposes of section 80 (1) (b), a period after the date on which an amount claimed was paid, which period may be different for different refunds;

(q.2) respecting the payment of an amount under section 90 (5) and any other conditions or requirements affecting the payment of that amount; 

(q.3) prescribing refunds for the purposes of section 115 (2.1) and (5.01);

(r) prescribing information, certifications and documentation for the purposes of section 88.1 (4) (a);

(r.1) prescribing

(i)  persons for the purposes of the definition of "charity funds" in section 88.2 (1),

(ii)  facilities for the purposes of the definition of "health facility" in section 88.2 (1),

(iii)  types and uses of equipment for the purposes of the definition of "medical equipment" in section 88.2 (1),

(iv)  information, certifications and documentation for the purposes of section 88.2 (3), and

(v)  a method for determining the amount of the refund to be paid under section 88.2 (4);

(r.2) prescribing

(i)  tangible personal property for the purposes of the definition of "qualifying tangible personal property" in section 92.2 (1),

(ii)  classes of persons for the purposes of section 92.2 (2), and

(iii)  sections of the regulations for the purposes of section 92.2 (4);

(s) prescribing any matter or thing related to an agreement under section 93.1, including the circumstances in which the commissioner may enter into the agreement, the conditions to which the agreement is subject, the matters referred to in section 93.1 (3) the time and manner of payment for the purposes of section 93.1 (7), the requirements for claiming a benefit under an agreement, and the imposition of penalties or the cancellation of the agreement for the failure to comply with the agreement, this Act or the regulations;

(t) [Not in force.]

(u) prescribing structures, vehicles and components and uses of those structures, vehicles and components that are not included under section 6 (4.3) in the meaning of family residential dwelling unit for the purpose of section 6 (4.1) and (4.2);

(v) prescribing the percentage of the fair market value of a manufactured home that is subject to tax under section 6 (4.1);

(v.1) prescribing the percentage of the fair market value of a manufactured home that is subject to tax under section 6 (4.2);

(w) prescribing any matter or other thing required to carry out the intent of section 6 (4.1), (4.2), (4.3) and (4.4);

(x) prescribing the circumstances in which tax is not required to be paid in relation to a gift under section 11 (4.2);

(y) prescribing the purposes for which software may be used that are eligible for exemption under section 76 (1) (j);

(z) prescribing the percentage of the purchase price of a manufactured home that is subject to tax under section 6 (4.1);

(z.1) prescribing the percentage of the purchase price of a manufactured home that is subject to tax under section 6 (4.2);

(z.2) prescribing a drug or vaccine for the purposes of section 71 (b.1).

(2) The Lieutenant Governor in Council may make regulations that the Lieutenant Governor in Council considers necessary or advisable to determine depreciated values for the purposes of section 19 (1) and (3).

(3) [Repealed 2009-4-35.]

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

(5) and (6) [Repealed 2010-5-161.]

Regulations in relation to exemptions

139  (1) Despite any other provision of this Act, the Lieutenant Governor in Council may make regulations providing for a full or partial exemption from the payment of tax imposed under this Act, including, without limitation, regulations doing one or more of the following:

(a) exempting a person or class of persons from the payment of tax;

(b) exempting any thing or class of thing from taxation;

(c) establishing circumstances in which an exemption applies;

(d) setting conditions of, or limitations on, the application of an exemption.

(2) In making a regulation 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) make different regulations for different persons or different classes of persons.

Regulations in relation to payment, collection and remittance of tax

140  (1) Despite any other provision of this Act, the Lieutenant Governor in Council may make regulations as follows:

(a) respecting the time at which tax is payable under this Act and any other conditions or requirements affecting the payment of tax;

(b) respecting the collection and remittance of tax and any other conditions or requirements affecting the collection and remittance of tax.

(2) In making a regulation under subsection (1), the Lieutenant Governor in Council may make different regulations for different provisions of this Act or for different circumstances or classes of circumstances.

Regulations in relation to continuous supplies

141  (1) Despite section 5 and Division 7 of Part 2, in relation to tangible personal property or a telecommunication service that is provided to a purchaser on a continuous basis by means of a wire, pipeline or similar conduit or satellite or other telecommunication facility, the Lieutenant Governor in Council may, by regulation,

(a) provide for the determination of an amount, and

(b) for the purpose of calculating the tax payable under section 5 or Division 7 of Part 2 by reason of section 5.1 (3) (b) or (c) or 54.1 (1) (b) to (d), deem the amount to be the consideration or the purchase price for the tangible personal property or telecommunication service for that portion of the period that is before July 1, 2010.

(2) In making a regulation under subsection (1), the Lieutenant Governor in Council may make different regulations for different persons, tangible personal property or telecommunication services or for different classes of persons, tangible personal property or telecommunication services.

Regulations in relation to progress payments

142  (1) Despite sections 36, 37, 37.1, 40, 40.1, 41 and 41.1, the Lieutenant Governor in Council may make regulations as follows:

(a) respecting the application of section 36, 37, 40 or 41 in relation to services, as defined in section 37.1, or taxable services that are provided under a contract to construct, renovate, alter or repair a ship or other vessel;

(b) providing for the determination of an amount and, for the purpose of calculating the tax payable under section 36, 37, 40 or 41, deeming the amount to be the contract amount or purchase price.

(2) Despite section 128 (4), a regulation made under subsection (1) of this section may be made retroactive to October 15, 2009 or a later date, and if made retroactive is deemed to have come into force on the specified date.

Regulations in relation to combined supplies and software

143  (1) In this section, "taxable item" means tangible personal property, leased property, a taxable service, legal services, a telecommunication service or a parking right.

(2) Despite any other provision of this Act, the Lieutenant Governor in Council may make regulations as follows:

(a) respecting the application of this Act in relation to a taxable item if 2 or more taxable items are provided together for a single price, including, without limitation, deeming each taxable item that is provided together to be provided separately;

(b) respecting the calculation of tax payable under this Act in relation to a taxable item if 2 or more taxable items are provided together for a single price, including, without limitation, providing for the calculation of tax payable under this Act in respect of each taxable item;

(c) respecting the application of this Act in relation to software;

(d) respecting the calculation of tax payable under this Act in relation to software.

(3) In making a regulation under subsection (2), the Lieutenant Governor in Council may do one or more of the following:

(a) delegate a matter to a person;

(b) confer a discretion on a person;

(c) make different regulations for different taxable items or for different classes of taxable items.

Regulations in relation to price reductions

144  (1) The Lieutenant Governor in Council may make regulations as follows:

(a) respecting refunds of tax paid under this Act or a reduction of tax payable under this Act to be made by a vendor to a purchaser if the purchase price of the tangible personal property, taxable service, legal services or telecommunication service is reduced after tax imposed under this Act is payable;

(b) respecting refunds of tax paid under this Act or a reduction of tax payable under this Act to be made by a lessor to a lessee if the lease price of the leased property is reduced after the tax imposed under this Act is payable.

(2) In making a regulation under subsection (1), the Lieutenant Governor in Council may make different regulations for different vendors, lessors, tangible personal property, taxable services, legal services, telecommunication services or leased property or for different classes of vendors, lessors, tangible personal property, taxable services, legal services, telecommunication services or leased property.

Regulations in relation to return of services

145  (1) The Lieutenant Governor in Council may make regulations respecting refunds of tax paid under this Act if a purchaser or recipient of a taxable service, legal services or a telecommunication service cancels the service and, as a result of the cancellation, the vendor

(a) pays a refund to the purchaser or recipient, or

(b) provides other services to the purchaser or recipient that have a purchase price that is less than the purchase price paid for the cancelled service.

(2) In making a regulation under subsection (1), the Lieutenant Governor in Council may make different regulations for different vendors, services or circumstances or for different classes of vendors, services or circumstances.

Regulations applying provisions of Excise Tax Act (Canada)

146  The Lieutenant Governor in Council may make regulations as follows:

(a) applying one or more provisions of the Excise Tax Act (Canada) for the purposes of this Act;

(b) prescribing modifications the Lieutenant Governor in Council considers appropriate to a provision applied under paragraph (a).

Regulations — transition

147  (1) Despite this or any other Act, the Lieutenant Governor in Council may make regulations as follows:

(a) respecting any matter that the Lieutenant Governor in Council considers is not provided for, or is not sufficiently provided for, by the amendments to this Act made by the Consumption Tax Rebate and Transition Act;

(b) making provisions that the Lieutenant Governor in Council considers appropriate for the purpose of more effectively bringing into operation the amendments to this Act made by the Consumption Tax Rebate and Transition Act;

(c) making provisions that the Lieutenant Governor in Council considers appropriate for the purpose of preventing, minimizing or otherwise addressing any transitional difficulties encountered in bringing into effect the amendments to this Act made by the Consumption Tax Rebate and Transition Act, including, without limitation, provisions making an exception to or a modification of a provision in an enactment or providing for the application or continued application of a previous enactment;

(d) resolving any errors, inconsistencies or ambiguities arising from the amendments to this Act made by the Consumption Tax Rebate and Transition Act.

(2) To the extent of any conflict between a regulation under subsection (1) and another enactment, the regulation prevails.