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| This archived statute consolidation is current to November 5, 2001 and includes changes enacted and in force by that date. For the most current information, click here. |
[Updated to May 14, 2001]
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Contents |
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Section |
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1 In this Act:
"accommodation" means the provision of lodging in hotels and motels, and other lodging designated by the Lieutenant Governor in Council, but does not include lodging exempted by the Lieutenant Governor in Council;
"assessment" includes reassessment;
"director" means the person authorized by the minister to administer this Act;
"minister" means the Minister of Finance and Corporate Relations;
"mistake of law" includes any mistake that is not solely a mistake of fact;
"operator" means a person, other than a tourism agent, who, in the normal course of the person's business, sells, offers to sell, provides, or offers to provide, accommodation in British Columbia;
"purchaser" means a person who acquires accommodation from an operator
(a) for the person's own use,
(b) for use by other persons at the person's expense,
(c) on behalf of, or as the agent for, a principal who desires to acquire accommodation for use by the principal or other persons at the person's expense, or
(d) as a tourism agent for inclusion in a tourism service provided or to be provided by the tourism agent;
"purchase price" means the price for which accommodation is purchased, including the price in money, the value of services rendered and other consideration accepted by the operator in return for the accommodation provided.
"tourism agent" means a person who purchases accommodation from one or more operators and who, for payment, makes the whole or any part of that accommodation available for use by one or more persons as part of a tourism service.
2 (1) A purchaser must, at the time of making a purchase of accommodation, pay to the government for the purpose of raising revenue for Provincial purposes a tax of 6.35% of the purchase price of the accommodation.
(2) If the minister is of the opinion that the purchase price attributed to accommodation by the operator does not represent the fair market value of the accommodation, the minister may determine an appropriate taxable value and the purchase price of the accommodation for the purpose of taxation under this Act is the taxable value determined by the minister.
3 (1) If, after the date prescribed in a regulation made under section 43 (2) (e), accommodation is purchased in an area in respect of which this section is, by the regulation, declared to apply, the purchaser must, at the time of purchasing the accommodation, pay, in addition to the tax payable under sections 2 and 3.1, a tax at the prescribed rate on the purchase price of the accommodation.
(2) If, on the request of a municipality, regional district or eligible entity, a regulation is made under section 43 (2) (e), the minister must pay out of the consolidated revenue fund, without an appropriation other than this section, to the municipality, regional district or eligible entity, as the case may be, amounts equivalent to the net revenue collected under this section in the municipality or regional district or the prescribed area of either or the prescribed area of British Columbia, as the case may be.
(3) A municipality, regional district or eligible entity must not spend any money paid to it under subsection (1) for a purpose other than a prescribed purpose and must account to the minister for its expenditure.
(4) If a purchaser purchases accommodation in an area in respect of which subsection (1) is declared to apply, the purchaser is entitled under subsection (5) to a refund of tax paid if
(a) for the purchase of a specified number of days of accommodation the purchaser
(i) received a written confirmation of reservation,
(ii) entered into a written contract, or
(iii) made a deposit of money, and
(b) the confirmation, contract or deposit was received, entered into or made before subsection (1) was declared to apply to accommodation in that area.
(5) The director, on receiving evidence satisfactory to him or her, must, out of the consolidated revenue fund, grant a purchaser referred to in subsection (4) a refund equal to the amount of tax paid under subsection (1) on the purchase price of the accommodation for each of the specified number of days.
(6) The maximum amount of tax that may be imposed under this section and sections 2 and 3.1 is 10% of the purchase price of the accommodation.
3.1 In addition to the tax payable under section 2, a person who is a purchaser of accommodation must pay to the government, at the time of purchase, for the raising of revenue for the purposes of Tourism British Columbia a tax of 1.65% of the purchase price of the accommodation.
4 (1) An operator must not sell, offer to sell, provide or offer to provide accommodation in British Columbia unless
(a) he or she is registered and has been granted, on an application in the form prescribed by the director, a registration certificate under this Act, and
(b) the registration certificate is in force at the time of the sale.
(2) The registration certificate granted under subsection (1) must be kept at the principal place of business of the operator in British Columbia and must be presented for inspection by the director, or by a person designated by the director, on request.
(3) The registration certificate granted under subsection (1) is not transferable.
(4) The director may, with the approval of the minister, cancel or suspend a registration certificate granted to a person under this section or refuse to grant a registration certificate to a person who
(a) has committed an offence under this Act,
(b) has failed to collect or remit, when required, tax imposed under this Act, or
(c) has failed to post the security required under section 33.
5 (1) In this section, "sale in bulk" means
(a) a sale of tangible personal property by an operator out of the usual course of his or her business, or
(b) a sale of an interest in the business of an operator.
(2) An operator must not dispose of his or her stock through a sale in bulk without first obtaining from the director a certificate in duplicate that all taxes collected by the operator have been paid.
(3) A person purchasing stock from an operator through a sale in bulk must obtain from the operator one of the duplicate copies of the certificate referred to in subsection (2), and if the person fails to do so, the person is liable for payment to the director of all taxes collected and not remitted by the operator.
6 An operator is deemed to be an agent of the minister and as such must levy and collect the tax imposed by this Act on the purchaser.
7 A person who collects tax imposed under this Act is deemed to act subject to Part 10 of the Financial Administration Act but, despite any other Act, a person acting under this section is not thus made ineligible as a member of the Legislative Assembly.
8 The tax imposed under this Act, whether the price is stipulated to be payable in cash, on terms, by installments or otherwise, must be collected at the time of the sale on the total amount of the purchase price and must be remitted to the director at the prescribed times and in the prescribed manner.
8.1 If a person collects an amount as if it were a tax imposed under this Act, the person must remit the amount collected to the director at the same time and in the same manner as tax collected under this Act.
9 (1) The director may, in accordance with the regulations, refund from the consolidated revenue fund to an operator who sells accommodation a portion, determined in the prescribed manner, of the amount sent by the operator to the director in respect of taxes payable on that sale under this Act.
(2) The director may provide a refund under subsection (1) if
(a) the operator, in accordance with this Act, remits the tax required under this Act to be levied and collected for the sale referred to in subsection (1),
(b) the purchaser subsequently fails to pay to the operator the full amount of the consideration and tax payable on that sale, and
(c) the operator writes off as unrealizable or uncollectable the amount owing by the purchaser.
(3) An operator may, in the prescribed manner, deduct the amount of the refund payable to the operator under this section from the amount of taxes that the operator is required to remit under this Act.
(4) If an operator who has obtained a refund under subsection (1) or made a deduction under subsection (3) recovers 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 operator must add an amount, determined in the prescribed manner, to the tax to be paid or remitted by the operator under this Act with respect to the reporting period in which the recovery was made.
10 (1) If the director is satisfied that taxes or a portion of taxes have been paid in error, other than an error that is a mistake of law, the director must refund from the consolidated revenue fund the amount of the overpayment to the person entitled.
(2) If the director is satisfied that an operator has remitted to the director an amount as collected taxes that the operator neither collected nor was required to collect under this Act, the director must refund the amount to the operator from the consolidated revenue fund.
11 (1) In order to claim a refund under this Act, a person must
(a) submit to the director an application in writing signed by the person who paid the amount claimed, and
(b) provide sufficient evidence to satisfy the director that the person who paid the amount is entitled to the refund.
(2) For the purposes of subsection (1) (a), if the person who paid the amount claimed is a corporation, the application must be signed by a director or authorized employee of the corporation.
12 (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 made more than 6 years after the date on which the tax was paid.
(2) Despite the Limitation Act, an action for a refund of tax paid in error, other than an error that is a mistake of law, must not be brought more than 6 years after the date on which the tax was paid.
13 (1) A person does not have a right of action or other remedy against the government for the recovery of money paid as tax by mistake of law except by way of subsection (2) and by appeal under sections 18 and 19.
(2) A person who has paid money as tax by mistake of law may apply to the director for a refund of that money within
(a) 6 years after the money was paid, if it was paid by an individual in respect of accommodation for the use of that individual, or
(b) 6 months after the money was paid, in any other case.
(3) If the director is satisfied that a person who applies under subsection (2) has paid money as tax by mistake of law, the director must refund out of the consolidated revenue fund to the person the amount paid by mistake.
(4) This section applies also to money paid as tax by mistake of law before June 5, 1992.
14 The minister may make an allowance to operators for their services in collecting and forwarding the tax to the minister, as prescribed in the regulations but, despite any other Act, a person accepting an allowance under this section is not, by accepting the allowance, made ineligible as a member of the Legislative Assembly.
15 (1) An operator must make returns to the director and must keep records in the form and containing information as prescribed.
(2) Failure to comply with subsection (1) is an offence under this Act.
16 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
(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, or
(e) for the purpose of the compilation of statistical information by the government or the government of Canada.
16.1 (1) For any purpose related to the administration or enforcement of this Act or the regulations, the director or a person authorized by the director 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 director, or the authorized person referred to in subsection (1), in which are stated the facts necessary to establish
(a) compliance by the director 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.
17 (1) A person appointed by the director may enter at a reasonable time the business premises occupied by a person, or the premises where the person's records are kept,
(a) to determine whether or not
(i) the person is an operator, or the premises is accommodation within the meaning of this Act, or
(ii) this Act and the regulations are being and have been complied with, or
(b) to inspect, audit and examine books of account, records or documents.
(2) The person in charge of or occupying the premises referred to in subsection (1) must
(a) answer all questions pertaining to the matters set out in subsection (1), and
(b) produce the books of account, records or documents as required.
(3) If it appears from the inspection, audit or examination, or from information available to the person making the inspection, audit or examination, that the person in charge of or occupying the premises is an operator or the premises is accommodation within the meaning of this Act, or 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 by a procedure the director considers adequate and expedient, and
(b) the director must assess the operator or the person occupying the premises for the amount of the tax calculated.
(3.1) If it appears from an inspection, audit or examination or from other information available to the director that a person has received a refund of tax under this Act that was in excess of the refund amount that was due to the person, the director 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.
(4) The person assessed under subsection (3) (b) or (3.1) may appeal the amount of the assessment under section 18.
(5) In making an assessment under this section, the director must not consider or include a period greater than 6 years before the date of the first notice of assessment.
(6) Despite subsection (5), in making an assessment under this section, the director may consider and include any period, if the assessment relates to a contravention of this Act or the regulations, involving wilful default or fraud.
(7) If, as a result of an inspection, audit or examination under subsection (1), it appears that an amount of tax should have been but was not collected, the director must impose a penalty against the person who should have collected the tax in an amount equal to the total of the amount of tax that should have been collected plus interest calculated at the rate and in the manner prescribed.
(8) In imposing a penalty under subsection (7), the director must not consider a period greater than 3 years, all or part of which may be before April 6, 1982.
(9) Evidence that an assessment has been made under subsection (3) or (3.1) or that a penalty has been imposed under subsection (7) is proof in the absence of evidence to the contrary that the amount stated in the assessment or imposed as a penalty is due and owing.
(10) A person who has paid an amount imposed under subsection (7) 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 (7), and any amounts recovered in the action may be retained by the plaintiff as compensation for the amount paid under subsection (7).
18 (1) If a person disputes
(a) a decision of the director under section 3 (5), 9, 10 or 13 (3),
(b) an assessment made under section 17 (3) or (3.1),
(c) a penalty or interest imposed under section 17 (7) or 32, or
(d) a determination of the director under section 24 (11),
the person may personally or by an agent, within 90 days after the date on the notice of the disputed decision, assessment or penalty, serve notice of appeal on the minister.
(2) The notice of appeal must be in writing and must be addressed to the minister at Victoria.
(3) The notice must 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.
19 (1) A decision of the minister under section 2 (2) or 18 (4) may be appealed to the Supreme Court by way of originating application.
(2) The Rules of Court relating to originating applications apply, but Rule 49 does not apply.
(3) A petition must be filed in the court registry within 90 days after the date on the minister's notification of decision and, in that petition, the government must be designated "Her Majesty the Queen in right of the Province of British Columbia".
(4) Within 14 days after the filing of the petition under subsection (3), it must be served on the government in accordance with section 8 of the Crown Proceeding Act.
(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 dismiss the appeal, allow the appeal, vary the decision from which the appeal is made or refer the decision back to the director 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.
20 An assessment made or a penalty imposed by the director under section 17 must not be varied or disallowed merely because of an irregularity, informality, omission or error on the part of a person in observing a directory provision up to the date of the issuing of the notice of assessment or imposition of a penalty under section 17.
21 (1) The giving of a notice of appeal by a person or a delay in the hearing of the appeal does not
(a) affect the due date, interest, penalties or liability for payment provided under this Act for taxes or penalties that are the subject matter of the appeal that are
(i) due and payable, or
(ii) have been collected on behalf of the government, or
(b) delay the collection of those taxes or penalties.
(2) If a decision of the director or the minister is set aside or the amount of an assessment or penalty is reduced on appeal, the director must refund from the consolidated revenue fund
(a) the amount or excess amount paid, and
(b) any additional interest or penalty imposed and paid.
22 (1) The purchaser is and remains liable for the tax imposed under this Act until the tax has been paid to an operator.
(2) If an operator fails to collect the tax, the operator must immediately notify the director and the purchaser may be sued for the amount of the tax in a court of competent jurisdiction.
(3) Action against the purchaser under this section does not affect the liability of the operator under this Act for failure to collect the tax.
23 (1) If a person collects an amount of tax under this Act, or if a person collects an amount as if it were a tax under this Act,
(a) the person is deemed to hold it in trust for the government for payment to the government in the manner and at the time required under this Act and regulations, and
(b) the tax collected is deemed to be held separate from and form no part of the person's money, assets or estate, whether or not the amount of the tax has in fact been kept separate and apart from either the person's own money or the assets of the estate of the person.
(2) Despite section 9, if an operator sells accommodation, any money received by the operator in respect of the accommodation, up to the full amount of the tax owing, is deemed to be payment of the tax owing by the purchaser under this Act.
(3) A person who, as assignee, liquidator, administrator, receiver, receiver manager, trustee, secured party as defined in section 24 or other 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 must, before distributing the property or the proceeds from the realization of it, obtain from the director a certificate that the amount that constituted a lien registered under section 24 (2) has been paid or that security acceptable to the minister has been given.
(4) An assignee, liquidator, administrator, receiver, receiver manager, trustee, secured party as defined in section 24 or other similar person, other than a trustee appointed under the Bankruptcy and Insolvency Act (Canada), who distributes the property referred to in subsection (3) or the proceeds of the realization of it without having obtained the certificate required by that subsection 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.
24 (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 under this Act or the regulations and does not collect or remit the taxes, the director may
(a) 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, register a lien against the real property of
(i) the person,
(ii) an associated corporation of the person, or
(iii) a related individual of the person, and
(b) 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 director, register a lien against the personal property of
(i) the person,
(ii) an associated corporation of the person, or
(iii) a related individual of the person.
(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) the amount of taxes remaining uncollected or unremitted, or both, that were required to be collected or were collected before registration, and
(b) any related interest and penalty on the 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 any portion of the property that is subject to a prior lien or security interest for
(a) the amount of taxes remaining uncollected or unremitted, or both, that were required to be collected or were collected before registration, and
(b) any related interest and penalty on the taxes.
(5) Subject to subsections (6) and (7), a lien 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) 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) and despite any other enactment.
(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 personal property referred to in paragraph (a) is subject to
(i) a security interest that was perfected under the Personal Property Security Act before the registration of the first lien under subsection (2) (b), or
(ii) another lien that was 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) 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 assessment under section 17 (3) 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 director 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 16, the director 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 director believes that one corporation is associated with another corporation within the meaning of section 256 of the Income Tax Act (Canada), the director may request one or both of the corporations to provide to the director the records and information required by the director to confirm or rebut that belief.
(11) The director 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 director under subsection (10) fails or refuses to comply with that request within a period of time considered by the director to be reasonable in the circumstances, or
(b) the records or information provided to the director under this section confirm the director's belief that the corporations are associated.
(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 director
(a) must notify the corporation in writing of the determination, and
(b) may register a lien under this section against the real and personal property of the corporation.
(13) The director 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 that property 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 18 (1), the date on which the minister upholds the determination under that appeal.
(14) If, at any time, the director becomes convinced that the corporations were not associated within the meaning of section 256 of the Income Tax Act (Canada) at the time that the lien was registered under subsection (12) (b) or the minister or a court of competent jurisdiction upholds the corporation's appeal against the director's determination on the basis that the corporations were not associated at the time that the lien was registered, the director must,
(a) if the director has not realized on any of the assets against which the lien was registered, promptly release the lien, and
(b) if the director has realized on some or all of the assets against which the lien was registered, promptly release the lien against the remaining assets and pay the proceeds realized from the sale of the realized assets minus any costs or expenses incurred in the sale
(i) to the corporation, or
(ii) if the director considers it appropriate to do so, into the Supreme Court under Rule 48 of the Rules of Court.
(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.
25 (1) Before taking proceedings for the recovery of an amount owing under this Act, the director must give to the person who owes the amount notice of the director's intention to enforce payment.
(2) Failure to give notice under subsection (1) does not affect the validity of proceedings taken for the recovery of an amount owing under this Act.
26 The amount of taxes due and payable under this Act, or that have been collected on behalf of the government, may be recovered by action in a court of competent jurisdiction in the same manner as a debt due to the government, and the court may make an order as to the costs of the action in favour of or against the government.
27 (1) If default is made in the payment of a penalty or of taxes due and payable under this Act, or that have been collected on behalf of the government, or any part of them, the director may 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.
(2) The director may file the certificate referred to in subsection (1) with a district registrar of the Supreme Court and, when filed, the certificate is of the same 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.
28 (1) In this section, "taxpayer" includes an operator.
(2) If the director knows or suspects that a person is or is about to become indebted or liable to make a payment to a taxpayer, the director may demand that that person pay all or part of the money otherwise payable to the taxpayer to the director on account of the taxpayer's liability under this Act.
(3) Without limiting subsection (2), if the director knows 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 director may demand that that person pay the money that would otherwise be advanced or paid to the director on account of the taxpayer's liability under this Act.
(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 director demands that a person pay to the director, on account of the liability under this Act of a taxpayer, money otherwise payable by that person to the taxpayer as interest, rent, remuneration, a dividend, an annuity or other periodic payment, the demand
(a) applies to all of those payments to be made by the person to the taxpayer until the liability under this Act is satisfied, and
(b) operates to require payments to the director out of each payment of the amount stipulated by the director in the demand.
(5) A savings institution is indebted to a taxpayer within the meaning of this section for money or a beneficial interest in money in a savings institution on deposit to the credit of a taxpayer at the time a demand is served, or deposited to the credit of a taxpayer after a demand is served but not for money on deposit or deposited to the credit of a taxpayer in his or her capacity as a trustee.
(6) Unless a demand under this section is satisfied earlier, it 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 on the expiration of that period.
(7.1) Money demanded from a person by the director 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 the case may be, to pay to the director.
(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 aggregate of the money advanced or paid, and
(b) the amount that the person was required under subsection (3) to pay to the director.
(10) The receipt of the director for money paid under this section is a sufficient discharge of the original liability to the extent of the payment.
(11) Money paid by any person to the director 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 his or her own name, the demand under subsection (2), (3) or (4) may be addressed to the name or style under which he or she 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.
29 (1) At any time within 7 years after the date on which liability arose for payment of taxes
(a) an action for the recovery of taxes may be commenced under section 26,
(b) a certificate may be filed under section 27, or
(c) a demand may be made under section 28.
(2) Despite subsection (1), an action, certificate or demand that relates to a contravention of this Act or the regulations and that involves willful default or fraud may be commenced, filed or made, as the case may be, at any time.
30 If, without a registration certificate in force under section 4 (1), an operator sells, offers to sell, provides or offers to provide accommodation that is taxable under this Act, the minister may apply to the Supreme Court for an injunction ordering the operator to cease selling or offering to sell, or providing or offering to provide, the accommodation until the operator fulfills his or her obligations under this Act and pays the costs of the application.
31 (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, 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 for a contravention of this Act.
32 (1) In addition to any other penalty, the director may,
(a) if the director is satisfied that a person willfully 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, or
(b) in any case other than a case referred to in paragraph (a), if the director is satisfied that 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 director may, at any time, assess on the amount of taxes not remitted or paid as required under this Act or the regulations, interest calculated at the rate and in the manner prescribed
(a) whether or not the director has assessed a penalty under subsection (1), and
(b) in respect of any period during which tax under this Act or the regulations ought to have been remitted or paid.
(3) The penalty and interest under this section form part of the lien under section 24.
33 (1) If the operator has failed to collect or remit tax in accordance with this Act, the director may require the operator to deposit with the minister a bond by way of cash or other security satisfactory to the minister.
(2) The amount of the bond must be determined by the director but must not be more than an amount equal to 6 times the tax, or the estimated tax, that would normally be collected by the operator each month under this Act.
(3) If an operator who has deposited a bond under subsection (1) fails to collect or remit tax in accordance with this Act, the director may, after giving written notice to the operator, either by registered mail or by service of the notice on the operator, apply all or part of the bond to the amount that should have been collected, remitted or paid by the operator as the amount due to the government as of the date of the notice.
34 An operator who sells or provides accommodation must not advertise or hold out or state to the public or a purchaser, directly or indirectly, that the tax or part of it imposed under this Act
(a) will be assumed or absorbed by the operator,
(b) will not be considered as an element in the price to the purchaser, or
(c) if added to the price, will be refunded.
35 If a corporation is guilty of an offence against this Act and an officer, director, employee or agent of the corporation directed, authorized, assented to or acquiesced or participated in the commission of the offence, that person is a party to and guilty of the offence, but this does not affect the liability of the corporation for the penalties provided for the offence.
36 (1) A person commits an offence if the person
(a) makes or participates in, 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 or the regulations,
(b) in order to evade remittance of tax collected by the person, destroys, alters, mutilates, conceals or otherwise disposes of a record or book of accounts of an operator,
(c) in a record or book of accounts of an operator, makes or assents to or acquiesces in the making of a false or deceptive entry or omits or assents to or acquiesces in the omission to enter a material particular,
(c.1) refuses to cooperate with an inspection, audit or examination, including producing 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,
(c.2) willfully, in any manner, fails to comply with this Act or the regulations,
(d) willfully, in any manner, evades or attempts to evade compliance with this Act or the regulations or remittance of payment of taxes required by this Act or the regulations, or
(e) conspires with any person to do anything described in paragraphs (a) to (d).
(2) A person who commits an offence under subsection (1) is liable
(a) to a fine of not more than $10 000 or to imprisonment for not more than 2 years or to both, and
(b) in addition, to a fine equal to the amount of any tax not remitted or paid, including penalties and interest, as determined under subsection (3).
(3) In a prosecution under this section, a certificate signed or purported to be signed by the director stating the amount of tax, penalties and interest referred to in subsection (2) (b) is evidence of the amount of tax, penalties and interest referred to in that subsection.
37 Section 5 of the Offence Act does not apply to this Act or the regulations.
38 (1) [Repealed 2000-22-14.]
(2) A person who contravenes section 16 commits an offence and is liable to a fine of not more than $2 000.
(3) An operator who fails to collect the tax imposed by this Act commits an offence and is liable to a fine equal to the amount of the tax that should have been collected, including arrears, penalties and interest as determined under subsection (4), and in addition is liable
(a) on a first conviction, to a fine of not less than $200 and not more than $1 000, and
(b) on a subsequent conviction for the same or another provision of this Act, to a fine of not less than $500 and not more than $2 000.
(4) The director must determine the amount of the tax referred to in subsection (3) from information available to the director and must issue a certificate as to the amount, but unless the director considers that there has been a deliberate evasion of this Act, the director must not consider a period of more than 3 years in determining the amount of tax.
(5) In a prosecution under subsection (3), a certificate signed or purported to be signed by the director stating the amount of tax that should have been collected is, without proof of appointment or signature,
(a) evidence of the amount of tax that should have been collected, and
(b) conclusive evidence of the authority of the person giving or making the certificate.
(6) An information or complaint for an offence under this Act may be for one or more than one offence, and an information, complaint, warrant, conviction or other proceeding in a prosecution under this Act is not objectionable or insufficient merely because it relates to 2 or more offences.
(7) A remedy for the recovery of tax or amount payable under this Act is not suspended or affected by
(a) the enforcement of a penalty under this section, or
(b) anything else done under this section.
(8) Fines collected under this Act must be paid to the minister on behalf of the government and must be paid into the consolidated revenue fund.
39 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 the case may be, to the director, is on the defendant.
40 An information or complaint for an offence against this Act may, in the case of fraud, be laid or made at any time but, in any other case must be laid or made within 6 years of the time when the matter of the information or complaint arose.
41 (1) In a prosecution brought against an operator who is required to register under this Act, the operator's application form is evidence that the person charged is an operator registered under this Act, and the operator's return form is evidence that he or she collected the tax.
(2) If the operator 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.
42 The proceeds of the tax imposed under this Act must be paid into the consolidated revenue fund.
43 (1) The Lieutenant Governor in Council may make regulations referred to in section 41 of the Interpretation Act.
(2) Without limiting subsection (1), the Lieutenant Governor in Council may make regulations as follows:
(a) prescribing the forms and records to be used and kept for this Act or the regulations;
(b) prescribing the method of collection and remittance of the tax and any other conditions or requirements affecting collection and remittance;
(c) determining the remuneration and the conditions on which remuneration is to be paid to operators for collecting and forwarding the tax to the government;
(d) prescribing types of accommodation to which this Act will not apply and prices for those types of accommodation;
(e) declaring
(i) on the request by bylaw of a municipality or regional district, that effective on a prescribed date section 3 (1) applies in respect of accommodation purchased in the municipality or regional district, as the case may be, or in a prescribed area of either, or
(ii) on the request of an eligible entity, that effective on a prescribed date section 3 (1) applies in respect of accommodation purchased in a prescribed area of British Columbia;
(f) prescribing the rate of tax that is to apply to accommodation referred to in paragraph (e) and the purposes for which the amount paid to the municipality, regional district or eligible entity out of the revenue collected from the tax may be spent by it;
(g) prescribing the qualifications of entities that are eligible to request that a regulation be made under paragraph (e) (ii);
(h) defining an expression used in this Act or regulations and not defined;
(i) exempting certain lodgings or persons from this Act or the regulations;
(j) prescribing the method by which a purchase price may be attributed to accommodation that is sold as part of a combination of accommodation, meals and specialized services;
(k) prescribing interest rates and the manner of calculating interest for the purposes of this Act.
(3) For the purposes of a regulation under subsection (2) (b), the Lieutenant Governor in Council may prescribe different methods, conditions or requirements for different classes of persons.
(4) [Repealed 2000-22-16.]
(5) The Lieutenant Governor in Council may amend or repeal a regulation made under subsection (2) (e) or (f) whether or not the amendment or repeal is requested by the municipality, regional district or eligible entity that requested the regulation.
Copyright (c) 2001: Queen’s Printer, Victoria, British Columbia, Canada