HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:

Income Tax Act

1 Section 4.34 of the Income Tax Act, R.S.B.C. 1996, c. 215, is amended by adding the following subsection:

(4) For the purposes of this section, if an individual becomes bankrupt in a calendar year, the following rules apply in respect of any taxation year that ends in the calendar year:

(a) subsection (2) is to be read as if the phrase "who is deemed to have paid an amount under section 122.8 of the federal Act for the year" were "who is deemed to have paid an amount under section 122.8 of the federal Act for the taxation year that ends at the end of the calendar year in which the individual becomes bankrupt";

(b) paragraph (a) (ii) of the description of "B" in subsection (2) is to be read as follows:

(ii) the amount that would be determined in respect of the qualifying child by the formula in the description of "B" in section 122.8 (2) of the federal Act and that would be included in computing the individual's deemed payment under that section for the year, if that Act were read without reference to section 122.8 (5) of that Act;

(c) paragraph (b) of the description of "B" in subsection (2) is to be read as if the phrase "for the year" in both places were "for the taxation year that ends at the end of the calendar year in which the individual becomes bankrupt";

(d) subsection (3) is to be read as follows:

(3) If more than one individual is entitled to a deduction under this section for a taxation year that ends in a calendar year in respect of a qualifying child, the following rules apply to those individuals for any taxation year that ends in the calendar year in respect of that qualifying child:

(a) the individuals may deduct an amount under this section only if the individuals are deemed to have paid amounts under section 122.8 of the federal Act for the taxation year that ends at the end of the calendar year;

(b) in respect of those individuals who meet the requirement referred to in paragraph (a) of this subsection,

(i) the total of all amounts deducted by the individuals under this section for all taxation years that end in the calendar year must not exceed the maximum amount that would be deductible for all taxation years that end in the calendar year by any one of the individuals if that individual were the only individual entitled to deduct an amount under this section, and

(ii) the total amount that is deductible under this section by any one of the individuals for all taxation years that end in the calendar year must be determined using the same proportion that, under section 122.8 (4) of the federal Act, is agreed to by the individual or is fixed for that individual by the federal minister.

2 Section 34 is amended by striking out "160.2, 160.21, 160.3," and substituting "160.2 to 160.4,".

3 Section 79 (1) is amended in paragraphs (a) (ii) (C) and (b) (ii) (C) of the definition of "BC labour expenditure" by striking out "from" and substituting "after".

4 Section 79 (1) is amended by repealing the definition of "certifying authority" and substituting the following:

"certifying authority" means the Minister of Jobs, Tourism and Skills Training and Minister Responsible for Labour; .

5 Section 79 (1) is amended in the definition of "eligible production" by repealing paragraph (c) and substituting the following:

(c) neither the production nor any interest in a person or partnership that has, directly or indirectly, an interest in the production is a tax shelter investment as defined in section 143.2 (1) of the federal Act; .

Insurance Premium Tax Act

6 Section 1 (1) of the Insurance Premium Tax Act, R.S.B.C. 1996, c. 232, is amended by adding the following definitions:

"amount owing" means

(a) tax owing to the government, or

(b) an amount owing to the government under section 15.1;

"assessment" includes reassessment; .

7 Section 15 is amended

(a) in subsection (1) by striking out "If the examination of a taxpayer's return discloses that overpayment has been made by the taxpayer," and substituting "If it appears from an inspection, audit, examination or investigation or from other information available to the commissioner that an overpayment has been made by a taxpayer,", and

(b) in subsection (2) by striking out "if further tax payable by that taxpayer is due or accruing due," and substituting "if there is an amount owing by the taxpayer," and by striking out "the tax," and substituting "the amount owing,".

8 The following section is added:

Excess refund

15.1  (1) If it appears from an inspection, audit, examination or investigation or from other information available to the commissioner that an amount has been refunded to a taxpayer in excess of the amount to which the taxpayer was entitled as a refund under this Act,

(a) the excess is deemed to be an amount that became payable by the taxpayer on the date on which the amount was refunded, and

(b) the taxpayer is liable to pay interest on the excess calculated at the rate and in the manner prescribed by the Lieutenant Governor in Council from the date the excess became payable to the date of payment.

(2) If an amount applied under section 15 (2) to an amount owing by a taxpayer is in excess of the amount to which the taxpayer is entitled as a refund under this Act, this section applies in respect of the amount applied as if that amount had been refunded to the taxpayer on the date the amount was applied to the amount owing.

9 Section 16 is amended

(a) in subsection (1) by striking out "any tax due" and substituting "an amount owing",

(b) in subsection (2) by striking out "or reassess",

(c) in subsection (2) (a) (ii), (iii) and (iv) by striking out "or reassessment", and

(d) by adding the following subsections:

(2.1) The commissioner may assess a taxpayer at any time for any amount payable by the taxpayer under section 15.1.

(6) Subject to being amended, changed or varied on appeal or by reassessment, an assessment or penalty made or imposed under this Act is valid and binding despite any error, defect or omission in the assessment or penalty or in procedure.

10 Section 17 is amended

(a) in subsection (1) by striking out "A person who objects" and substituting "Subject to subsection (4), a person who objects", and

(b) by adding the following subsection:

(4) An appeal may not be made under this section in relation to an assessment made under section 16 (2.1).

11 The following section is added:

Irregularity in procedure

18.1  An assessment must not be varied or disallowed by a court because of an 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 assessment.

12 Section 20 is amended by striking out "no assessment of tax, interest and penalties" and substituting "no amount owing under this Act that is".

13 Section 21 is amended

(a) in subsection (1) by striking out "A tax imposed or assessed under this Act" and substituting "An amount owing under this Act by a taxpayer" and by striking out "effective December 31 of the year for which the tax is imposed," and substituting "effective December 31 of the year in respect of which the amount is owing,",

(b) in subsection (2) (b) by striking out "the taxes due," and substituting "the amount owing,", and

(c) in subsection (2) (c) by striking out "the taxes," and substituting "the amount owing,".

14 Section 22 is amended

(a) in subsection (1) by striking out "a tax" and substituting "an amount owing", and

(b) in subsection (2) by striking out "the tax." and substituting "the amount owing."

15 Section 23 is amended by striking out "The amount of tax that is due and payable" and substituting "An amount owing under this Act".

16 Section 24 (1) is repealed and the following substituted:

(1) If a person fails to pay an amount owing under this Act, the commissioner may issue a certificate specifying the amount owed and the name of the person who owes it.

17 Section 26 is amended

(a) in subsection (1) by striking out "the amount of tax that is due and payable," and substituting "an amount owing under this Act,",

(b) in subsection (1) (a) by striking out "tax," and substituting "amount owing,",

(c) in subsection (3) by striking out "a tax," and substituting "an amount owing under this Act,",

(d) in subsection (5) by striking out "the amount of the tax" and substituting "the amount owing", and

(e) in subsection (6) by striking out "the person for whose taxes the property was distrained," and substituting "the taxpayer in respect of whom the property was distrained,", by striking out "paid to the person," and substituting "paid to the taxpayer," and by striking out "the person's" and substituting "the taxpayer's".

18 Section 27 is amended

(a) in subsection (1) by striking out "recovery of taxes" and substituting "the recovery of an amount owing", and

(b) in subsection (2) by striking out "a tax" and substituting "an amount owing".

19 Section 27.1 is amended

(a) in subsection (1) (a) by striking out "taxes," and substituting "an amount owing,", and

(b) in subsection (2) by striking out "or re-assessment".

Logging Tax Act

20 Section 1 of the Logging Tax Act, R.S.B.C. 1996, c. 277, is amended by adding the following definitions:

"amount owing" means

(a) taxes owing to the government, or

(b) an amount owing to the government under section 21.1;

"assessment" includes reassessment; .

21 The following section is added:

Calculation of interest if loss carryback or other
amount applied under Income Tax Act (Canada)

15.11  If the deduction, reduction or exclusion of amounts described in section 161 (7) (a) of the Income Tax Act (Canada), on account of tax payable under that Act, results in the reduction of tax payable under this Act for a taxation year, the following rules apply for the purposes of calculating interest payable under section 15 or 15.1 of this Act:

(a) the amount of tax payable under this Act for the taxation year is deemed to be the amount that would be payable if the consequences of that deduction, reduction or exclusion were not taken into consideration;

(b) the amount by which the tax payable under this Act is reduced for the taxation year is deemed to be an amount that was paid, on account of that tax payable, on the date that is 60 days after the date on which the commissioner receives notice, under section 20 (5) of this Act, that tax payable under the Income Tax Act (Canada) has been reassessed as a result of that deduction, reduction or exclusion.

22 Section 16 is amended by striking out "pay any tax and interest and penalties assessed and levied with respect to that income" and substituting "pay the amount owing with respect to that income".

23 Section 17 is amended by striking out "no unpaid assessment of tax, interest and penalties" and substituting "no amount owing under this Act that is".

24 Section 20 is amended

(a) in subsection (1) by striking out "taxes due" and substituting "an amount owing",

(b) in subsections (2) and (5) (b) by striking out "or reassess",

(c) by adding the following subsection:

(2.1) The commissioner may assess a taxpayer at any time for any amount payable by the taxpayer under section 21.1. ,

(d) in subsection (5) by striking out "assessment, reassessment or additional assessment" in both places and substituting "assessment or additional assessment",

(e) in subsection (5) (b) (i) by striking out "or reassessment", and

(f) by adding the following subsection:

(6) Subject to being amended, changed or varied on appeal or by reassessment, an assessment or penalty made or imposed under this Act is valid and binding despite any error, defect or omission in the assessment or penalty or in procedure.

25 Section 21 is amended

(a) in subsection (1) by striking out "If the examination of a taxpayer's return discloses that an overpayment has been made by the taxpayer," and substituting "If it appears from an investigation, examination or inquiry or from other information available to the commissioner that an overpayment has been made by a taxpayer,",

(b) in subsection (2) by striking out "if further tax payable by the taxpayer is due or accruing due," and substituting "if there is an amount owing by the taxpayer,", and

(c) in subsection (2) (a) by striking out "that tax," and substituting "the amount owing,".

26 The following section is added:

Excess refund

21.1  (1) If it appears from an investigation, examination or inquiry or from other information available to the commissioner that an amount has been refunded to a taxpayer for a taxation year in excess of the amount to which the taxpayer was entitled as a refund under this Act,

(a) the excess is deemed to be an amount that became payable by the taxpayer on the date on which the amount was refunded, and

(b) the taxpayer is liable to pay interest on the excess calculated at the rate and in the manner prescribed by the Lieutenant Governor in Council from the date the excess became payable to the date of payment.

(2) If an amount applied under section 21 (2) to an amount owing by a taxpayer is in excess of the amount to which the taxpayer is entitled as a refund under this Act, this section applies in respect of the amount applied as if that amount had been refunded to the taxpayer on the date the amount was applied to the amount owing.

27 Section 23 is amended by adding the following subsection:

(5) An appeal may not be made under this section in relation to an assessment made under section 20 (2.1).

28 Section 26 is amended by adding "by a court" after "disallowed".

29 Section 28 is amended

(a) in subsection (1) by striking out "A tax imposed or assessed under this Act" and substituting "An amount owing under this Act by a taxpayer" and by striking out "the taxation year of the taxpayer for which the tax is imposed," and substituting "the taxation year in respect of which the amount is owing,",

(b) in subsection (2) (b) by striking out "the taxes due," and substituting "the amount owing,", and

(c) in subsection (2) (c) by striking out "the taxes," and substituting "the amount owing,".

30 Section 29 (1) and (2) is amended by striking out "a tax" and substituting "an amount owing".

31 Section 30 is amended by striking out "The amount of tax due and payable" and substituting "An amount owing under this Act".

32 Section 31 (1) is repealed and the following substituted:

(1) If a person fails to pay an amount owing under this Act, the commissioner may

(a) issue a certificate specifying the amount owed and the name of the person who owes it, and

(b) file the certificate with any district registrar of the Supreme Court.

33 Section 33 is amended

(a) in subsection (1) by striking out "the amount of a tax that is due and payable," and substituting "an amount owing under this Act,",

(b) in subsection (1) (a) by striking out "tax," and substituting "amount owing,",

(c) in subsection (3) by striking out "a tax," and substituting "an amount owing under this Act,",

(d) in subsection (5) by striking out "the amount of the tax" and substituting "the amount owing", and

(e) in subsection (6) by striking out "the person for whose taxes the property was distrained," and substituting "the taxpayer in respect of whom the property was distrained,", by striking out "the claimant," and substituting "the taxpayer," and by striking out "the claimant's" and substituting "the taxpayer's".

34 Section 34 is amended

(a) in subsection (1) by striking out "taxes" and substituting "an amount owing", and

(b) in subsection (2) by striking out "a tax" and substituting "an amount owing".

35 Section 34.1 is amended

(a) in subsection (1) (a) by striking out "taxes," and substituting "an amount owing,", and

(b) in subsection (2) by striking out "or re-assessment".

36 Section 35 (b) and (d) is amended by striking out "payment of tax" and substituting "payment of an amount owing under this Act".

Tobacco Tax Act

37 Section 37 of the Tobacco Tax Act, R.S.B.C. 1996, c. 452, is amended

(a) in subsection (3) by striking out "The amount of" and substituting "Subject to subsection (5), the amount of",

(b) in subsection (4) by striking out "If there" and substituting "Subject to subsection (5), if there", and

(c) by repealing subsection (5) and substituting the following:

(5) If a bond is required as a condition of holding a dealer's permit or a retail authorization, the amount of the bond determined by the director under this section must be at least $5 000.

 
Transitional Provisions

Income Tax Act transition – definition of "eligible production"

38  (1) Subject to subsection (2), paragraph (c) of the definition of "eligible production" in section 79 (1) of the Income Tax Act, as that paragraph read on November 14, 2003, applies in respect of taxation years that end on or before November 14, 2003.

(2) Paragraph (c) of the definition of "eligible production" in section 79 (1) of the Income Tax Act, as enacted by this Act, applies in respect of the following:

(a) taxation years that end after November 14, 2003;

(b) a film or video production in respect of which a corporation has, in a return of income filed before November 14, 2003, claimed an amount under section 80 of the Income Tax Act in respect of a BC labour expenditure, as defined in section 79 (1) of that Act, incurred after March 31, 1998.

Logging Tax Act transition

39  The amendments made by this Act to the Logging Tax Act apply in respect of taxation years beginning on or after January 1, 2009.

Commencement

40  The provisions of this Act referred to in column 1 of the following table come into force as set out in column 2 of the table: