MOTOR FUEL TAX ACT

"alcohol based fuel" means fuel of which at least 85% is ethanol or methanol or a combination of both;

"alternative motor fuel" means alternative motor fuel as defined in the regulations;

(a) produced specifically for use in an aircraft that is not propelled by a turbine, and

“board member” means a member of a board of directors of a corporation and includes a person who is deemed to be a board member under section 45.2;

"carrier" means a person who owns or operates one or more motor vehicles used interprovincially or internationally for the commercial carriage of passengers or goods;

(b) issued, in accordance with the International Fuel Tax Agreement, by another jurisdiction that is a party to that agreement;

"collector" means a person who has been appointed under section 28 (1), 29 (2) or 32 (2);

"commercial motor vehicle" means a commercial vehicle as defined in the Commercial Transport Act;

"family farm" means land that

(a) is classified as a farm under the Assessment Act, and

(b) is operated by

(i) an individual,

(ii) individuals who are prescribed family members, or

(iii) a corporation if

(A) the corporation’s sole activity is the operation of the land as a farm,

(B) 75% of the voting shares of each class of shares of the corporation that have attached to them the right to vote in the election of the directors are controlled, in the prescribed manner, by individuals who are prescribed family members, and

"family farm truck" means a farm vehicle, as defined in the Commercial Transport Regulations, that is used in the operation of a family farm;

"family farm truck emblem" means a certificate issued by the director under the regulations;

"farmer" means a person who operates a farm on land classified as a farm under the Assessment Act;

"fuel" means any gas or liquid for use for generating power by means of an internal combustion engine;

"gasoline" means fuel that is not alcohol based fuel, alternative motor fuel, aviation fuel, coloured fuel, jet fuel, liquefied petroleum gas, locomotive fuel, marine bunker fuel, natural gas, marine diesel fuel or motive fuel;

"Greater Vancouver Transportation Authority" means the authority established under the Greater Vancouver Transportation Authority Act;

"Greater Vancouver transportation service region" has the same meaning "transportation service region" has in the Greater Vancouver Transportation Authority Act;

(b) a motor vehicle or class of motor vehicle that, by regulation, is designated as an industrial machine;

"internal combustion engine" includes a turbine engine that generates power by the use of fuel;

"International Fuel Tax Agreement" means the agreement entered into by the minister under section 17;

(a) produced specifically for use in an aircraft that is propelled by a turbine, and

"locomotive fuel" means fuel for use in an internal combustion engine in any rolling stock or other vehicle run on rails;

that is used in a ship as fuel for an internal combustion engine, but does not include marine diesel fuel;

that is used in a ship as fuel for an internal combustion engine, and has a viscosity of

(d) 10 centistokes or higher when measured at a temperature of 50°C, but is sold as diesel fuel;

"mineral" means ore of metal 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,

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

for use in propelling a motor vehicle, but does not include alternative motor fuel or fuel that is taxable under section 5;

"motive fuel user permit" means a permit issued under the regulations authorizing a person to use, to propel a commercial motor vehicle, motive fuel that was not taxed under this Act at the time of purchase;

"motor vehicle" means a vehicle that is designed to be self propelled on land;

(b) is in receipt of a 100% disability pension through active service in any war while a member of Her Majesty's forces,

(c) receives, or would receive but for having reached 65 years of age, disability assistance or a supplement under the Employment and Assistance for Persons with Disabilities Act,

(e) has been certified by a medical practitioner as suffering from a permanent impairment of locomotion to the extent that it would be hazardous for the person to use public transportation,

(f) has been certified by a medical practitioner as suffering from a permanent sight impairment to the extent that the person would not be eligible to hold a driver's licence under the Motor Vehicle Act,

(g) has suffered the complete and permanent functional loss of the lower limbs, or

(h) before March 12, 1980 qualified under an enactment to receive a rebate of fuel tax as a handicapped person;

(a) with respect to fuel other than fuel referred to in paragraph (b), the price in money and the actual value of any other consideration accepted by the seller or person from whom fuel passes as the price or on account of the price of the fuel together with the costs of and charges for delivery of the fuel, interest, customs, excise and transportation, whether or not shown separately on the invoice or in any books of account or in the computation of the price, and

(b) with respect to fuel transferred or used by a person referred to in section 11 (b) or (c), the costs and expenses for material, labour and other manufacturing and processing costs, expenses and overhead, and for customs, excise, transportation, service and other costs and expenses incurred by the person before the fuel is transferred or used in British Columbia;

"purchaser" means a person who, within British Columbia, buys or receives delivery of fuel

(a) for the person's own use or for use by another person at the first person's expense, or

(b) on behalf of or as an agent for a principal for use by the principal or by other persons at the expense of the principal;

"registered consumer" means a person who has been issued a registered consumer certificate under section 37 (1);

"retail dealer" means a person who, within British Columbia, sells fuel to a purchaser;

"road building machine" means a road building machine as defined in the Commercial Transport Act;

"ship" includes any vessel that is designed to be self propelled in or on water;

"standard reference conditions" means at a temperature of 15^°C and an atmospheric pressure of 101.325 kPa;

"tractor" means a motor vehicle designed for use primarily as a power unit for drawing vehicles, machinery or equipment, and includes farm tractors and industrial tractors, but does not include

(a) a motor vehicle designed to carry goods or materials the weight of which rests entirely on the frame of the motor vehicle, or

(b) a truck tractor that is designed for use on public highways, or has been modified for that use, and that is eligible for licensing as a truck tractor under the Commercial Transport Act;

"vendor" means a person who, within British Columbia, sells fuel for the first time after its manufacture in, or its importation into, British Columbia;

"wholesale dealer" means a person who, within British Columbia, buys fuel for resale to a person other than a purchaser.

Application of Act

2 (1) Subject to subsection (2), the following are exempt from tax under this Act:

(b) fuel that is brought into British Columbia in the supply tank or in a supplemental supply tank of an aircraft or ship and that is to be used in the operation of the aircraft or ship;

(c) subject to subsection (2), fuel that is brought into British Columbia in the supply tank of a motor vehicle, other than a commercial motor vehicle or a locomotive, if the fuel in the supply tank is to be used in the operation of the motor vehicle.

(2) If the quantity of fuel brought into British Columbia in the supply tank and supplemental supply tanks of a motor vehicle exceeds 182 litres, the fuel is deemed to have been purchased in British Columbia, and, unless tax has been paid under this Act in respect of that fuel, the person in charge of the motor vehicle must pay, on the portion of the fuel in excess of 182 litres, tax at the rate imposed under this Act.

Section Repealed

Tax on alcohol based fuel and compressed natural gas

3.1 (1) Alcohol based fuel and compressed natural gas are deemed to be liable to be taxed under this Act.

Tax on gasoline

(a) outside the Greater Vancouver transportation service region must pay to the government, at the time of purchase, tax on the gasoline at the rate of 7.75¢ per litre,

(b) inside the Greater Vancouver transportation service region must pay to the government, at the time of purchase, tax on the gasoline at the rate of 13.75¢ per litre less the applicable rate of tax payable at the time of purchase under paragraph (c), and

(c) inside the Greater Vancouver transportation service region must pay to the Greater Vancouver Transportation Authority, at the time of purchase, tax on the gasoline at the following rates:

(a) outside the Greater Vancouver transportation service region, that purchaser is deemed to be a purchaser liable to pay tax under subsection (1) (a), and

(b) inside the Greater Vancouver transportation service region, that purchaser is deemed to be a purchaser liable to pay tax under subsection (1) (b) and (c).

(2) A licensed carrier who uses in British Columbia gasoline on which tax is not otherwise payable under subsection (1) must pay to the government, on or before the last day of the calendar month following the end of the calendar quarter in which the fuel was used, tax on that fuel at the rate established under subsection (1) (a).

(3) A person who uses in British Columbia gasoline on which tax is not otherwise payable under this section must pay to the government, on or before the 15th day of the month following the month in which the gasoline is used, tax on the gasoline at the rate set by subsection (1) (a).

Tax on coloured fuel

5 (1) A purchaser of coloured fuel must pay to the government, at the time of purchase, tax on the fuel at the rate of 3¢ per litre.

(2) A person who uses coloured fuel for a purpose authorized by section 15 and on which tax is not otherwise payable under this section must pay to the government, on or before the 15th day of the month following the month in which the fuel is used, tax on that fuel at the rate set by subsection (1).

(3) A person who qualifies as a bona fide farmer under the Social Service Tax Act may, if authorized by the regulations to do so, claim an exemption from tax imposed under this section, or a refund of tax paid under this section.

Tax on marine diesel fuel and locomotive fuel

6 (1) A purchaser of marine diesel fuel or locomotive fuel must pay to the government, at the time of purchase, tax on the fuel at the rate of 3¢ per litre.

(2) A person who uses marine diesel fuel or locomotive fuel on which tax is not otherwise payable under this section must pay to the government, on or before the 15th day of the month following the month in which the fuel is used, tax on that fuel at the rate set by subsection (1).

(3) A person who is not a purchaser but who, within British Columbia, transfers marine diesel fuel or locomotive fuel,

(a) for the person's own use or for use by another person at the first person's expense, or

(b) on behalf of or as agent for a principal for use by the principal or by another person at the principal's expense,

into the receptacle that supplies the turbine or other engine of a ship or of any rolling stock or other vehicle run on rails must pay to the government, at the time of the transfer, tax on the fuel at the rate set by subsection (1).

Tax on jet fuel

7 (1) A purchaser of jet fuel must pay to the government, at the time of purchase, tax on the fuel at the rate of 2¢ per litre.

(2) A person who uses jet fuel on which tax is not otherwise payable under this section must pay to the government, on or before the 15th day of the month following the month in which the fuel is used, tax on that fuel at the rate set by subsection (1).

(3) A person who is not a purchaser but who, within British Columbia, transfers jet fuel,

(a) for the person's own use or for use by another person at the first person's expense, or

(b) on behalf of or as agent for a principal for use by the principal or by another person at the principal's expense,

into the receptacle that supplies the turbine of an aircraft must pay to the government, at the time of the transfer, tax on the fuel at the rate set by subsection (1).

Tax on aviation fuel

8 (1) A purchaser of aviation fuel must pay to the government, at the time of purchase, tax on the fuel at the rate of 2¢ per litre.

(2) A person who uses aviation fuel on which tax is not otherwise payable under this section must pay to the government, on or before the 15th day of the month following the month in which the fuel is used, tax on that fuel at the rate set by subsection (1).

(3) A person who is not a purchaser but who, within British Columbia, transfers aviation fuel,

(a) for the person's own use or for use by another person at the first person's expense, or

(b) on behalf of or as agent for a principal for use by the principal or by another person at the principal's expense,

into the receptacle that supplies the engine of an aircraft must pay to the government, at the time of the transfer, tax on the fuel at the rate set by subsection (1).

Tax on natural gas

9 (1) In this section, "marketable gas" means gas that is available for sale for direct consumption as a domestic, commercial or industrial fuel or as an industrial raw material, or is delivered to a storage facility, whether it occurs naturally or results from processing natural gas.

(d) in the case of a person described in paragraph (b), on or before the 15th day of the month following the month in which the natural gas is used,

(3) Natural gas used or purchased for use in a stationary internal combustion engine that compresses natural gas is subject to tax as follows:

(a) if the compressor is located outside the processing plant and is used to move marketable gas from the gas processing plant to market or in or is out of storage facilities, the tax is an amount equal to 1.9¢ on every 810.32 litres, at standard reference conditions, of natural gas used;

(b) if the compressor is located within a gas processing plant and is used to compress marketable gas, the tax is an amount equal to 1.1¢ on every 810.32 litres, at standard reference conditions, of natural gas used;

(c) if the compressor is located at a well head, along the pipeline between the well head and a processing plant, or within a gas processing plant and is used to compress gas that is not marketable gas, the natural gas used to operate the compressor is

(i) effective April 1, 2000, subject to tax in an amount equal to 1.1¢ on every 810.32 litres, at standard reference conditions, on natural gas used,

(ii) effective April 1, 2001, subject to tax in an amount equal to 0.55¢ on every 810.32 litres, at standard reference conditions, of natural gas used, and

(d) effective April 1, 2000, natural gas is exempt from tax when used or purchased for use in compressors that are

(i) used to transmit waste gas, composed primarily of hydrogen sulphide and carbon dioxide, within a gas processing plant or from a gas processing plant to a well, or

(ii) are located at a well head and used to inject waste gas into a depleted well for permanent disposal.

(4) Natural gas used or purchased for use in a stationary internal combustion engine that pumps oil is

(a) subject to a tax equal to 1.1¢ on every 810.32 litres, at standard reference conditions, on natural gas used in pumps located at the well head or within the oil processing plant, and

(b) subject to a tax equal to 1.9¢ on every 810.32 litres, at standard reference conditions, on natural gas used in pumps located along pipelines that move the oil from the well head to the oil processing plant, from the oil processing plant to market, or in or out of storage facilities.

(5) Natural gas that is not purchased but is used in a stationary internal combustion engine other than as described in subsections (3) and (4) is subject to a tax equal to 1.1¢ on every 810.32 litres, at standard reference conditions, of natural gas.

(6) Natural gas that is purchased for use in a stationary internal combustion engine other than as described in subsections (3) and (4) is subject to tax at 7% of the purchase price of the natural gas.

Tax on motive fuel

(a) outside the Greater Vancouver transportation service region must pay to the government, at the time of purchase, tax on the fuel at the rate of 8.25¢ per litre,

(b) inside the Greater Vancouver transportation service region must pay to the government, at the time of purchase, tax on the fuel at the rate of 14.25¢ per litre less the applicable rate of tax payable at the time of purchase under paragraph (c), and

(c) inside the Greater Vancouver transportation service region must pay to the Greater Vancouver Transportation Authority, at the time of purchase, tax on the fuel at the following rates:

(a) outside the Greater Vancouver transportation service region, that purchaser is deemed to be a purchaser liable to pay tax under subsection (1) (a), and

(b) inside the Greater Vancouver transportation service region, that purchaser is deemed to be a purchaser liable to pay tax under subsection (1) (b) and (c).

(2) A licensed carrier who uses in British Columbia motive fuel on which tax is not otherwise payable under subsection (1) must pay to the government, on or before the last day of the calendar month following the end of the calendar quarter in which the fuel was used, tax on that fuel at the rate established under subsection (1) (a).

(3) A person who uses in British Columbia motive fuel on which tax is not otherwise payable under this section must pay to the government, on or before the 20th day of the month following the month in which the fuel is used, tax on that fuel at the rate established by subsection (1) (a).

Tax on alternative motor fuel

10.1 (1) A purchaser of an alternative motor fuel must pay to the government, at the time of purchase, tax on the fuel at the rate set out in the regulations.

(2) A licensed carrier who uses in British Columbia alternative motor fuel on which tax is not otherwise payable under subsection (1) must pay to the government, on or before the last day of the calendar month following the end of the calendar quarter in which the fuel was used, tax on that fuel at the rate established under the regulations.

(3) A person who uses in British Columbia alternative motor fuel on which tax is not otherwise payable under this section must pay to the government, on or before the 20th day of the month following the month in which the fuel is used, tax on that fuel at the rate established under the regulations.

(4) A rate established under the regulations for the purposes of this section must not exceed the rate set out in section 4 (1) (a).

Marine bunker fuel exemption

Greater Vancouver Transportation Authority tax arrangements

12 (1) The taxes imposed under sections 4 (1) (c) and 10 (1) (c) that are remitted to the minister as required under this Act

(a) are received by the minister as agent of the Greater Vancouver Transportation Authority, and

(b) subject to subsections (2) (b) and (3) of this section, must be remitted by the minister to the Greater Vancouver Transportation Authority.

(a) charge the Greater Vancouver Transportation Authority a fee to recover the additional costs to the government of collecting and remitting the tax imposed under sections 4 (1) (c) and 10 (1) (c), and

(b) deduct the fee referred to in paragraph (a) of this subsection from the amount of tax received on behalf of the Greater Vancouver Transportation Authority.

(3) The director may deduct from the amount of tax received by the minister on behalf of the Greater Vancouver Transportation Authority any amounts that the director or minister is required, under this Act or any other enactment or as a result of a judgment of a court, to refund to collectors, wholesale dealers, retail dealers or purchasers.

(4) Despite the Financial Administration Act, any taxes received by the minister 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 minister must remit to the Greater Vancouver 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 minister on behalf of the government may enter into a tax collection agreement with the Greater Vancouver Transportation Authority with respect to the tax described in subsection (1) and the fee described in subsection (2).

Victoria regional transit service area tax arrangements

12.1 (1) In this section, "Victoria regional transit service area" means the area established as the Victoria regional transit service area under section 25 of the British Columbia Transit Act.

(2) Subject to a regulation made under subsection (3) of this section, in addition to the tax payable under sections 4 and 10, a purchaser of gasoline or motive fuel from a retail dealer delivering either of those fuels to that purchaser within the Victoria regional transit service area must pay to the government, at the time of purchase, for the raising of revenue for the purposes of the British Columbia Transit Act, a tax at the rate of 2.5¢ per litre on each litre of gasoline or motive fuel purchased by the purchaser.

(a) specify that the tax under subsection (2) does not apply to gasoline, or to motive fuel, in which event, the tax must not be collected on that fuel,

(b) suspend the operation of subsection (2) insofar as it relates to any part of the Victoria regional transit service area, in which event, while that suspension is in force, no tax is payable under subsection (2) by a purchaser of gasoline or motive fuel from a retail dealer delivering either of those fuels to that purchaser within that part of the Victoria regional transit service area, and

(c) if a suspension has been prescribed under paragraph (b) of this subsection, prescribe that the suspension be terminated and that all or part of subsection (2) again comes into force in that part of the Victoria regional transit service area as of a prescribed date.

(4) The minister must pay out of the consolidated revenue fund, without an appropriation other than this subsection, to the regional transit commission for the Victoria regional transit service area amounts equivalent to the net revenue collected under subsection (2).

Additional tax for transportation infrastructure construction

13 (1) In addition to the tax payable under sections 4, 10, 12 and 12.1, a purchaser of gasoline or motive fuel from a retail dealer within an area prescribed under the Build BC Act must pay to the government, at the time of purchase, for the raising of revenue for purposes of the BC Transportation Financing Authority established under that Act a prescribed tax of not more than 6.75¢ per litre of gasoline or motive fuel purchased by the purchaser and to which a regulation under section 19 of the Build BC Act applies.

(2) In addition to the tax payable under sections 4, 10, 12 and 12.1, a person who uses in an area prescribed under the Build BC Act gasoline or motive fuel on which tax is not otherwise payable under this section must pay to the government, at the time that any tax payable by that person under section 4 (3) or 10 (3) of this Act is payable, for the purposes of the BC Transportation Financing Authority established under that Act, a prescribed tax not exceeding 6.75¢ per litre of gasoline or motive fuel used by the person and to which a regulation under section 19 of the Build BC Act applies.

Section Repealed

Authority to colour fuel

14 (1) The director may, in writing, authorize a person to colour fuel subject to the terms and conditions the director considers appropriate.

(2) An authorized person must not delegate or transfer the authorized person's authority to colour fuel.

(3) A person must not colour fuel unless authorized to do so by an authorization.

(4) The director may suspend, for the period prescribed by the regulations, or cancel an authorization if the director is satisfied that the authorized person has neglected or refused to comply with

(5) A suspension or cancellation under subsection (4) does not relieve an authorized person from any other liability.

(6) Before cancelling an authorization, the director must give the authorized person notice of the grounds for the proposed cancellation and an opportunity to show why the authorization should not be cancelled, but the director may suspend an authorization under subsection (4) without advance notice to the authorized person.

(7) Suspension or cancellation of an authorization takes effect when the notice of the suspension or cancellation is delivered to the authorized person.

(8) For the purposes of subsection (7), a notice of a suspension or cancellation is delivered to an authorized person when the notice

(a) is served on the authorized person in a manner provided in Rule 11 (2) of the Rules of Court, or

(b) is left at the authorized person's place of business with an adult who appears to be employed by the authorized person.

(9) The director may lift the suspension of an authorization after imposing on the authorized person the additional terms and conditions, if any, that the director considers appropriate.

Prohibition against unauthorized use of coloured fuel

15 (1) Subject to section 15.1, a person must not use coloured fuel except for the purpose of operating one or more of the following:

(d) a prescribed type of motor vehicle when used by the logging industry other than on a highway;

(e) a prescribed type of motor vehicle when used by the mining industry other than on a highway in respect of a mineral mining operation;

(g) a road building machine within a highway project area or used by or for the government in construction or repair of roads maintained by the government;

(h) a commercial motor vehicle, other than a pick-up truck, when used on other than a highway for the transportation of

for persons actively engaged in exploring or drilling for petroleum and natural gas;

(i) a tractor when used on a highway by or on behalf of a farmer for the purposes of the farmer's farm;

(j) a family farm truck being used for the purposes of the family farm if the operator of the family farm truck is carrying a family farm truck emblem issued for that truck;

(k) a tractor, industrial machine or road building machine when proceeding to or returning from a location where the use of coloured fuel in the vehicle is otherwise authorized under paragraph (b), (c) or (g);

(l) a vehicle that is ordinarily used for a purpose authorized under paragraph (d) or (e) and in respect of which a temporary operating permit has been issued under the Commercial Transport Act.

(2) Despite subsection (1), a person must not carry coloured fuel in a supply tank connected to the engine of a motor vehicle if another supply tank connected to the engine of the motor vehicle contains fuel that is not coloured.

(3) A person who uses coloured fuel for a purpose not authorized by subsection (1) must pay to the government, on or before the 15th day of the month following the month in which the fuel is used, tax equal to the difference between

(a) the tax that the person would have paid on that fuel if the fuel had not been taxed as coloured fuel, and

(4) The tax payable under subsection (3) is in addition to any tax payable under section 5.

Authority to use coloured fuel in certain vehicles
provided clear fuel tax rate is paid

15.1 (1) Subject to subsection (2), a person may use coloured fuel for a purpose not authorized by section 15, but only to operate a motor vehicle that

(2) A person who uses coloured fuel to operate a motor vehicle referred to in subsection (1) must pay to the government, on or before the 15th day of the month following the month in which the fuel is used, tax equal to the difference between

(a) the tax that the person would have paid on the fuel if the fuel had not been taxed as coloured fuel, and

(3) The tax payable under subsection (2) is additional to any tax payable under section 5.

Permit or licence required to bring fuel into British Columbia

16 (1) A carrier who brings motive fuel into British Columbia in the supply tank of a commercial motor vehicle must

(a) have in the carrier's possession a carrier licence and display carrier decals on the commercial motor vehicle,

(2) A licensed carrier who brings gasoline into British Columbia in the supply tank of a commercial motor vehicle must have in the carrier's possession a carrier licence and display carrier decals on the commercial motor vehicle.

(3) Subject to the terms and conditions the Lieutenant Governor in Council specifies in the regulations, subsections (1) and (2) do not apply

Minister may enter into agreement

17 The minister may, on behalf of the government, enter into an agreement with one or more governments of other jurisdictions, whether inside or outside of Canada, respecting the interjurisdictional administration of the collection, remittance and enforcement of the tax imposed under this Act or under similar Acts in the other jurisdictions.

Payments by minister

18 (1) Despite any other provision of this Act or any other Act, if tax or other moneys are collected or received by the government under this Act or under an agreement made under this Act, the minister may pay to another jurisdiction or to a licensed carrier that part of the tax and other moneys collected or received that is, under the International Fuel Tax Agreement, required to be paid to that other jurisdiction or the licensed carrier, as the case may be.

(2) Any payments made under subsection (1) may be paid out of the consolidated revenue fund.

Issue of licences and decals to carriers

19 (1) On application by a carrier, the director may, in accordance with the regulations, issue or renew or refuse to issue or renew to the carrier a licence under which the tax administration scheme contemplated by the International Fuel Tax Agreement is applied to the carrier.

(2) If the director refuses to issue or renew a licence to a carrier, the director must, on the request of the carrier, provide written reasons to the carrier for the director's refusal.

(3) An application under subsection (1) must be in the prescribed form and must contain or incorporate by reference the terms and conditions of the licence with which the carrier agrees to comply and to which the carrier agrees to be bound, and any other information required by the director.

(4) The director may suspend or cancel a licence issued under this section if the licensee fails to comply with this Act, the regulations or the terms and conditions of the licence set out on the application.

(5) A suspension or cancellation of a licence under subsection (4) does not relieve a person from any other liability.

(6) The director must issue to a carrier, to whom a licence has been issued under this section, 2 decals for each motor vehicle that is

(b) used interprovincially or internationally for the commercial carriage of passengers or goods.

(7) A carrier to whom a licence and decals are issued under this section must not assign or otherwise transfer that licence or those decals.

(8) A licensed carrier must not display the decals issued under subsection (6) unless that carrier is in compliance with this Act, the regulations and the terms and conditions of the licence set out in the application.

(9) A carrier whose carrier licence is suspended or cancelled must, immediately after that suspension or cancellation, return the carrier licence to the director and remove all decals issued under subsection (6) from the motor vehicles to which they were affixed.

Refund of taxes paid in error

20 (1) If the director is satisfied that taxes or an amount equal to 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 to the person entitled the amount of the overpayment.

(2) If the director is satisfied that a collector has remitted to the director an amount as collected taxes that the collector neither collected nor was required to collect under this Act, the director must refund the amount to the collector from the consolidated revenue fund.

Refund of taxes in accordance with Nisga'a Nation Taxation Agreement

"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 director must pay that refund from the consolidated revenue fund to that person.

Refunds when joint and several liability

20.2 (1) Despite section 20 (2), if the director is satisfied that the total of the amount paid by one or more board members who are jointly and severally liable with the corporation under section 45.1 (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 board members who made the payments were jointly and severally liable with the corporation, the director must pay a refund from the consolidated revenue fund in accordance with the following:

(a) if only one board member paid all or a part of the amount for which one or more board members and the corporation were jointly and severally liable under section 45.1 (1), refund to the board member the amount of the excess up to the amount paid by the board member;

(b) if two or more board members paid the amount or a part of the amount for which the board members and the corporation were jointly and severally liable under section 45.1 (1), refund to the board members the amount of the excess divided proportionately between the board members, up to the amount paid by each board member;

(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 board members who are jointly and severally liable under section 45.1 (1) for the applicable period of the refund.

(3) A refund may be paid under subsection (1) only to a board member or corporation who has applied for a refund.

Refund or deduction for bad debts

21 (1) The director may, in accordance with the regulations, refund from the consolidated revenue fund to a collector, wholesale dealer or retail dealer who sells fuel a portion, determined in the prescribed manner, of the amount remitted to the minister in respect of taxes payable on that sale under this Act.

(a) the collector, wholesale dealer or retail dealer, 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 person purchasing the fuel subsequently fails to pay to the collector, wholesale dealer or retail dealer the full amount of the consideration and tax payable on that sale, and

(c) the collector, wholesale dealer or retail dealer writes off as unrealizable or uncollectable the amount owing by the person purchasing the fuel.

(3) A collector may, in the prescribed manner, deduct the amount of the refund payable to the collector under this section 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 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 wholesale dealer or retail dealer who is not a collector and who has obtained a refund under subsection (1) recovers some or all of the amount referred to in subsection (2) (c) with respect to which the refund was paid, the wholesale dealer or retail dealer must, promptly after that recovery, pay to the government an amount determined in the prescribed manner.

Refund where fuel used for certain purposes

22 (1) If a person has paid tax imposed under section 4 or 10 in respect of fuel used for a purpose for which coloured fuel is authorized to be used under section 15 (1) (d), (e) or (h) or in respect of fuel used in a family farm truck while being operated internationally for the purpose specified in section 15 (1) (j), the director must pay to that person from the consolidated revenue fund a refund equal to the difference between the tax paid on the fuel under section 4 or 10 and the tax that would have been payable under section 5 had the fuel been coloured fuel.

(2) If a person has also paid tax imposed under section 12.1 or 13 in respect of fuel described in subsection (1), the director must, in addition to the refund under subsection (1), pay from the consolidated revenue fund to that person a refund equal to the amount of tax paid on the fuel under section 12.1 or 13.

Person with disabilities

23 (1) If a person with disabilities who is 16 years of age or older owns or leases a motor vehicle and has paid tax imposed by this Act on fuel used to propel the motor vehicle, the director must pay to the person from the consolidated revenue fund a refund equal to the tax paid during the period January 1 to December 31 up to a maximum of $500.

(2) A refund is payable under this section in respect of only one motor vehicle owned or leased by a person with disabilities.

Motive fuel refund

24 If a person purchases, for the operation of a private passenger motor vehicle, motive fuel on which tax imposed by section 10 has been paid, the director must pay to the person from the consolidated revenue fund a refund of 0.5¢ per litre on the motive fuel purchased.

Claim for refund

(a) submit to the director a written application 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.

Refund limits

(b) a refund must not be made on a claim for a refund made more than 6 years after the date on which the amount claimed was paid.

(2) Despite the Limitation Act, no action for a refund of tax paid in error or an amount equal to tax paid in error, other than an error that is a mistake of law, may be brought more than 6 years after the date on which the amount claimed was paid.

Refund of tax or an amount equal to tax paid by mistake of law

27 (1) No person has a right of action or other remedy against the government for the recovery of money paid as tax by mistake of law or as an amount equal to tax by mistake of law except by way of subsection (2) and by appeal under sections 50 and 51.

(2) A person who has paid money as tax by mistake of law or as an amount equal to 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 motor fuel for the use of that individual, or

(3) If the director is satisfied that a person who applies under subsection (2) has paid money as tax by mistake of law or as an amount equal to 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 or as an amount equal to tax by mistake of law before the day this section comes into force.

Appointment of vendors as collectors

(b) for and on behalf of the government, enter into an agreement with a collector setting out the duties to be performed by the collector and any matters the director considers necessary or advisable.

(2) A vendor must not sell fuel within British Columbia unless the vendor is appointed a collector under this section.

Prohibition against relabelling

29 (1) A person, other than a collector, must not sell any substance as a type of fuel unless that person purchased that substance as that type of fuel.

(2) For the purposes of this section, the director may, on conditions the director specifies, appoint a person as a collector.

Cancellation of collector's appointment

30 (1) The director may, without advance notice to a collector, suspend the collector's appointment for a period of up to 30 days if

(a) the director is satisfied that the collector knowingly gave false information on an application for the appointment, or

(1.1) If the director suspends an appointment of a collector under subsection (1), the director must, as soon as reasonably possible,

(b) provide the person with an opportunity to show the director why the suspension should be lifted.

(2) Subject to this section, the director may, by notice delivered to a collector, cancel the collector's appointment if

(a) the director is satisfied that the collector knowingly gave false information on an application for the appointment, or

(2.1) Before cancelling an appointment under subsection (2), the director must give the collector

(b) an opportunity to show the director why the appointment should not be cancelled.

(4) A suspension or cancellation of appointment under this section does not relieve a collector from any liability.

Exemption for locomotive fuel

31 The director may, in writing, exempt a collector, on conditions specified by the director, from the requirement to collect tax from a person who buys locomotive fuel.

Exemption of collector and appointment

32 (1) The director may, in writing, exempt a collector from the requirement to collect tax from a person who buys fuel for resale.

(2) The director may, on conditions the director specifies, appoint as a collector a person in respect of whom an exemption is made under subsection (1).

Deputy collectors

33 A wholesale dealer is deemed to have been appointed a deputy collector by a collector from whom the wholesale dealer purchases fuel.

Duties of retail dealers, collectors and deputy collectors

34 (1) A retail dealer must collect a tax imposed by this Act at the time of making the sale to a purchaser, and must, on demand of a collector or deputy collector remit the tax to the collector or deputy collector.

(2) If a retail dealer does not remit the tax to a collector or deputy collector, the dealer must remit it to the minister at the prescribed time and in the prescribed manner.

(3) A deputy collector must remit any tax collected by the deputy collector from a retail dealer to a collector on demand.

Remittance of tax

35 (1) A collector must remit to the minister all taxes collected by the collector under this Act at the prescribed time and in the prescribed manner.

(2) Despite section 21, any money received by a collector, wholesale dealer or retail dealer in respect of a sale of fuel, up to the full amount of the taxes owing, is deemed to be payment of the taxes owing by the purchaser under this Act.

Collections

35.1 (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.

(2) A person who collects an amount of tax under this Act, or collects an amount as if it were tax under this Act, 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 the regulations.

(3) Until an amount of tax and an amount collected as if it were tax referred to in subsection (2) are paid, the unpaid amount forms a lien and charge on the entire assets of the person who collected it, or the person's estate in the hands of any trustee, and has priority over all other claims of any person.

Allowance for collecting tax

36 (1) The minister may provide an allowance to collectors for their services in collecting and remitting the tax to the minister as prescribed by the regulations.

(a) prescribe different allowances for the collection and remittance of different kinds of taxes, and

Registered consumer

37 (1) The director may, on application in the form specified by the director, issue a registered consumer certificate to a person who satisfies the director that the person

(a) imports into British Columbia for the person's own use or for use by other persons at the first person's expense or, within British Columbia, manufactures or acquires for the person's own use, fuel on which tax has not been paid under this Act, or

(b) is engaged in the business of interprovincial or international transportation and brings into British Columbia in the supply tank of a motor vehicle motive fuel on which tax has not been paid under this Act.

(2) A registered consumer certificate may be issued under subsection (1) even to a person who is a collector.

(3) A registered consumer must pay to the government the tax payable by the registered consumer under this Act at the prescribed time and in the prescribed manner.

Security from collector

38 (1) Subject to the regulations, a collector must, in respect of fuel that is manufactured in or imported into British Columbia by the collector or that is otherwise acquired by the collector for sale in British Columbia, pay, as security to the director, within the time required by the director, an amount equal to the tax that would be collectable if that fuel were sold to a purchaser.

(2) On application by a collector, the director may, in writing and on conditions the director considers appropriate, exempt the collector from the requirements of subsection (1) in respect of fuel if the collector satisfies the director that the fuel will not be sold to a purchaser who is liable to pay tax under this Act.

(3) The director must refund to a collector security paid under subsection (1) on being satisfied that the fuel in respect of which security was paid

(4) An amount that is paid by a collector as security under subsection (1) may, unless the amount is refunded under subsection (3) or section 21, be retained by the government in satisfaction of the collector's obligation to collect and remit the tax imposed by this Act on a purchaser of the fuel.

(5) This section does not apply in respect of fuel for which the collector has been exempted under section 32 (1) from the requirement to collect tax.

Security from a deputy collector

39 (1) Subject to the regulations, a deputy collector must, in respect of fuel acquired by the deputy collector from a collector, pay, as security to that collector, an amount equal to the tax that would be collectable if that fuel were sold to a purchaser.

(2) On application by a deputy collector, the director may, in writing and on conditions the director considers appropriate, exempt the deputy collector from the requirements of subsection (1) if the deputy collector satisfies the director that the fuel in respect of which the security is payable will not be sold to a purchaser who is liable to pay tax under this Act.

(3) A collector who, in respect of fuel, has paid an amount as security under section 38 (1) may retain any amount received under subsection (1) of this section instead of collecting the tax imposed on the purchaser in respect of that fuel.

(4) If, under subsection (1), a deputy collector pays an amount as security in respect of fuel, and that amount is retained under subsection (3), the deputy collector is, subject to subsection (5), deemed to have satisfied the deputy collector's obligation to remit the tax that is imposed by this Act on the purchaser of the fuel.

(5) If some or all of the fuel in respect of which a deputy collector has paid security under this section is in the possession of the deputy collector at the time that a change in the rate of tax payable by a purchaser of that fuel takes effect, the deputy collector must provide to the director an inventory of that fuel and

(a) must, if the rate of tax increases, pay, as security to the director, within the time required by the director, an amount equal to the difference between

(i) the amount equal to the tax that would be collectable if that fuel were sold to a purchaser, and

(ii) the amount paid by the deputy collector as security in respect of that fuel, or

(b) may, if the rate of tax decreases, apply to the director for a refund in an amount equal to the difference between the amount referred to in paragraph (a) (ii) and the amount referred to in paragraph (a) (i).

(6) On application under subsection (5) (b) by a deputy collector, the director must pay to the deputy collector an amount equal to the difference between the amount referred to in subsection (5) (a) (ii) and the amount referred to in subsection (5) (a) (i) on being satisfied that the deputy collector has not received and will not receive a refund of that amount from the collector to whom the security was paid.

(7) The director must pay to a deputy collector an amount equal to the security paid by that deputy collector under subsection (1) on being satisfied that

(a) the fuel in respect of which security was paid was not sold or will not be sold to a purchaser, and

(b) the deputy collector has not received and will not receive a refund of the security from the collector to whom it was paid.

(8) If a refund in respect of fuel is paid to a deputy collector by the director under subsection (7), the collector who sold the fuel to the deputy collector must not grant a refund to the deputy collector or seek a refund from the government in respect of that fuel.

(9) This section does not apply to a deputy collector who has been appointed a collector under section 32 (2).

Security from retail dealer

40 (1) Subject to the regulations, a retail dealer must, in respect of fuel acquired by the retail dealer from a collector or deputy collector, pay, as security to that person, an amount equal to the tax that would be collectable if that fuel were sold to a purchaser.

(2) A collector or deputy collector who, in respect of fuel, has paid an amount as security under section 38 or 39 may retain any amount received under subsection (1) of this section instead of collecting the tax imposed on the purchaser in respect of that fuel.

(3) If, under subsection (1), a retail dealer pays an amount as security in respect of fuel, and that amount is retained under subsection (2), the retail dealer is deemed to have satisfied the retail dealer's obligation to remit the tax that is imposed by this Act on the purchaser of the fuel.

(4) The director must pay to a retail dealer an amount equal to the security paid by that retail dealer under subsection (1) on being satisfied that

(a) the fuel in respect of which the security was paid was not sold and will not be sold to a purchaser, and

(b) the retail dealer has not received and will not receive a refund of the security from the collector or deputy collector to whom it was paid.

(5) If a refund in respect of fuel is paid to a retail dealer by the director under subsection (4), the collector or deputy collector who sold the fuel to the retail dealer must not grant a refund to the retail dealer or seek a refund from the government in respect of that fuel.

(6) Subsection (1) does not apply in respect of fuel purchased by a retail dealer for resale to a purchaser who, by an enactment of the Province or Canada, is exempt from the tax imposed by this Act.

(7) This section does not apply to a retail dealer who has been appointed a collector under section 32 (2).

Inspection and audit powers

41 (1) Except as limited by subsection (3), the director 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 do any of the following:

(a) determine whether this Act and the regulations are being or have been complied with;

(a) produce all books of account or other records as may be required by the director, and

(b) answer all questions of the director regarding the matters referred to in that subsection.

(3) The power to enter a place under subsection (1) 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 (4).

(4) 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 (1), 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 (1) (a) to (c).

(5) When required by the director, a person must provide to the director all books of account and other records that the director considers necessary to determine whether this Act and the regulations are being or have been complied with.

(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.

Estimate of unremitted tax

42 (1) If a collector, wholesale dealer, retail dealer, licensed carrier, motive fuel permit holder or registered consumer fails to make a return or to remit tax as required under this Act, or if the returns are not substantiated by the records, the director may make an estimate of the amount of the tax

(a) that was collected by the collector, wholesale dealer or retail dealer or is payable by the licensed carrier, motive fuel permit holder or registered consumer, and

(b) for which the collector, wholesale dealer, retail dealer, licensed carrier, motive fuel permit holder or registered consumer has not accounted,

and that amount is deemed to be the amount collected or payable by the person in respect of whom the estimate is made.

(2) In making an estimate under this section the director must not consider or include a period longer than 6 years before the date of the first notice of assessment.

(3) Despite subsection (2), the director may enter into a written agreement with a person in which the person waives subsection (2) and allows the director, in making an estimate under this section, to consider and include any period specified in the agreement.

Assessment of tax

43 (1) If it appears from an inspection, audit or examination or from other information available to the director that taxes have not been paid or remitted as required by this Act or the regulations, the director must

(a) calculate in the manner and by the procedure the director considers appropriate, the tax not paid or remitted, and

(b) assess the person liable to pay the tax, the collector, wholesale dealer or retail dealer.

(2) If it appears from an inspection, audit or examination or from information available to the director that fuel on which a person has paid tax under section 5 has been used for a purpose not authorized by section 15, the director must

(a) determine the difference between the tax paid by the person on that fuel and the tax that the person would have paid on that fuel if the fuel had not been taxed as coloured fuel, and

(b) assess the person for the difference determined under paragraph (a) of this subsection.

(2.1) 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.

(3) In making an assessment under this section the director must not consider or include a period longer than 6 years before the date of the first notice of assessment.

(4) Despite subsection (3), 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.

(5) Despite subsection (3), the director may enter into a written agreement with a person in which the person waives subsection (3) and allows the director, in making an assessment under this section, to consider and include any period specified in the agreement.

Failure to collect taxes or pay security

44 (1) If it appears from an inspection, audit or examination or from other information available to the director that an amount of tax imposed under this Act should have been but was not collected, the director must impose on the person who should have collected the tax a penalty equal to the amount of the tax that should have been collected, plus interest calculated at the rate and in the manner prescribed.

(2) If it appears from an inspection, audit or examination or from other information available to the director that an amount of security imposed under this Act should have been but was not paid, the director must impose on the person who should have paid that amount of security a penalty equal to the amount of security that should have been paid, plus interest calculated at the rate and in the manner prescribed.

(3) If a person is assessed a penalty under subsection (2), that person must not be assessed under subsection (1) in respect of the motor fuel that gave rise to the assessment under subsection (2).

(4) A person who has paid an amount imposed under subsection (1) or (2) 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 (1), and any amount recovered in the action may be retained by the plaintiff as compensation for the amount paid under subsection (1).

(5) In imposing a penalty under this section the director must not consider or include a period longer than 6 years before the date of the first notice of assessment.

(6) Despite subsection (5), the director may enter into a written agreement with a person in which the person waives subsection (5) and allows the director, in imposing a penalty under this section, to consider and include any period specified in the agreement.

Penalty for failure to remit or pay taxes

(a) if the director is satisfied that a person wilfully failed to remit tax collected as required by this Act or the regulations, impose on the person a penalty equal to 100% of the amount not remitted;

(b) if the director is satisfied that a person evaded the payment of tax by wilfully making a false or deceptive statement or by wilful default or fraud, impose on the person a penalty equal to 25% of the amount evaded;

(c) in any case, other than a case referred to in paragraph (a) or (b), if the director is satisfied that a person failed to remit or pay any tax as required by this Act or the regulations, impose on the person a penalty equal to 10% of the amount not remitted or paid.

Board member’s liability

45.1 (1) Subject to this section, if a corporation has failed to collect or remit taxes, or to pay an amount of security as required under this Act, a board member of that corporation is jointly and severally liable with the corporation to pay an amount equal to

(a) the taxes that the corporation failed to collect or remit during the term of the board member, including penalties and interest on that amount, and

(b) the security that the corporation failed to pay during the term of the board member, including penalties and interest on that amount.

(2) A board member is not liable under subsection (1) unless one of the following has occurred:

(a) a certificate has been filed under section 55 (1) 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;

(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 board member is not liable under subsection (1) if the board member 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 or to pay security as required under this Act.

Deemed board member

45.2 (1) If the director has reason to believe that a person who was not a member of the board of directors of a corporation performed some or all of the functions of a member of the board of directors of the corporation, the director may request the person and the corporation to provide to the director the records and information required by the director to confirm or rebut that belief.

(2) Subject to subsection (3), the director may decide that a person performed some or all of the functions of a member of the board of directors of a corporation if

(a) the person or the corporation that has been requested to provide records or information to the director under subsection (1) fails or refuses to comply with the 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 that the person performed some or all of the functions of a member of the board of directors of the corporation.

(3) The director must not decide under subsection (2) (b) that a person performed some or all of the functions of a member of the board of directors of a 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 members of the board of 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) If the director decides under subsection (2) that a person performed some or all of the functions of a member of the board of directors of a corporation, the person is deemed to be a board member of the corporation for the purposes of this Act for a term that equals the period the person performed those functions.

(5) Immediately after the director makes a decision under subsection (2), the director must notify in writing the person to whom the decision relates and the corporation of this decision.

Notice of assessment

46 (1) On making an estimate or assessment under section 42 or 43 or imposing a penalty under section 44 or 45, the director must issue a notice of assessment to the person liable to pay the amount estimated, assessed or imposed.

(2) Evidence that a notice of assessment under subsection (1) has been issued is proof, in the absence of evidence to the contrary, that the amount estimated, assessed or imposed under this Act is due and owing, and the onus of proving otherwise is on the person liable to pay the amount estimated, assessed or imposed.

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

Assessment against board member

46.1 (1) If the director decides that a board member is jointly and severally liable for an amount under section 45.1 (1), the director may assess the board member for

(a) the amount assessed under section 43 or 44 or both against the corporation for the corporation’s failure to collect or remit taxes or pay security or both as required during the term of the board member, including penalties and interest on that amount, and

(b) the amount estimated under section 42 as the tax the corporation collected during the term of the board member, including penalties and interest on that amount.

(2) The director must not make an assessment under subsection (1) in respect of the liability of a board member under section 45.1 if

(a) the person is no longer a board member of that corporation, and

(b) it is more than 2 years after the last date that the person was a board member of that corporation.

Irregularities

47 An estimate or assessment made or a penalty imposed by the director under this Act must not be varied or disallowed by a court because of an irregularity, informality, omission or error on the part of a person in the observation of any directory provision up to the date of the issuing of the notice of assessment.

Interest on money payable

48 (1) In addition to any amount of money payable under this Act, interest, at the prescribed rate and compounded as prescribed, is payable on the amount due from the time it was due or a later prescribed time.

Inspection powers

49 (1) A justice, who is satisfied by information on oath that there are reasonable grounds to believe that section 14 (3) or 15 is not being complied with, may at any time issue a warrant, under the justice's signature, authorizing a peace officer, named in the warrant, to enter and to search any premises or motor vehicle in order to inspect and take samples of the contents of a tank or container, including the fuel supply tank of a motor vehicle.

(2) If a peace officer has reasonable grounds to believe that section 14 (3) or 15 is not being complied with, and if it is impracticable to obtain a warrant, the peace officer may, without a warrant,

(a) stop a motor vehicle for the purpose of conducting an inspection under paragraph (b) of this section, and

(b) inspect and take samples of the contents of a tank or container, including the fuel supply tank of a motor vehicle.

(a) hinder, molest or interfere with a peace officer doing anything that the peace officer is authorized to do under this section, or

(b) prevent or attempt to prevent a peace officer from doing anything that the peace officer is authorized to do under this section.

Appeal to minister

50 (1) An appeal to the minister lies from a decision of the director about any of the following:

(b) a refund under section 20, 20.1, 20.2, 21, 22, 23, 24 or 27 (3) or under the regulations;

(2) Written notice of the appeal must be served on the minister within 90 days after the date on the director's notice of the decision.

(3) The appellant must set out in the notice of appeal a statement of all material facts and the reasons in support of the appeal.

(b) affirm, amend or change the assessment, decision, estimate, interest charge, penalty or the nature of the assessment, and

Appeal to court

51 (1) A decision of the minister under section 50 (4) may be appealed to the Supreme Court by way of an 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.

(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 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 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.

Pending appeal not to affect tax collection

52 (1) Neither the giving of a notice of appeal by a person nor a delay in the hearing of an appeal

(a) affects the date of payment, the interest or penalties or any liability for payment under this Act in respect of the amount estimated, assessed or imposed that is the subject matter of the appeal, or

(2) If the director's or the minister's decision is set aside or the amount of an estimate, assessment or penalty reduced on appeal, the director must refund from the consolidated revenue fund to the appellant

Collection bond

53 (1) The director may require a collector, licensed carrier, motive fuel permit holder or registered consumer to deposit with the director a bond by way of cash or other security satisfactory to the director.

(2) The amount of the bond is to be determined by the director, but it must not be greater than 6 times the estimated amount of the monthly tax collection or payment determined in a manner the director considers appropriate.

(3) If a person, who has deposited a bond under subsection (1), fails to collect, remit or pay tax or pay security in accordance with this Act, the director, after giving written notice to the person who is bonded, may apply all or part of the bond to the amount that should have been collected, remitted or paid by the person, and to the interest due on that amount under this Act.

Court action to recover money

54 Money due to the government under this Act may be recovered by action in a court.

Summary proceedings without action

55 (1) If a person fails to pay or remit money owing to the government under this Act, the director may issue a certificate specifying the amount owed and the name of the person who owes it.

(2) The director may file with the Supreme Court a certificate issued under subsection (1).

(3) A certificate filed under subsection (2) has the same effect and is enforceable in the same manner as a judgment of the court in favour of the government for the recovery of a debt in the amount specified in the certificate.

Alternate remedies

56 (1) Remedies available to the government for the recovery of money under this Act may be exercised separately, concurrently or cumulatively.

(2) The liability of a person for the payment of money under this Act is not affected by a fine or penalty imposed on or paid by the person for contravention of this Act.

Attachment of funds

57 (1) In this section, "taxpayer" includes a collector, wholesale dealer, retail dealer, licensed carrier, motive fuel permit holder, registered consumer and a board member who is jointly and severally liable with a corporation under section 45.1 (1).

(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 government on account of the taxpayer's liability under this Act.

(3) Without limiting subsection (2), if the director knows or suspects that a person is about to advance money to, or make a payment on behalf of a taxpayer, or make a payment in respect of a negotiable instrument issued by a taxpayer, the director may demand that that person pay to the government on account of the taxpayer's liability under this Act the money that would otherwise be advanced or paid.

(4) If under this section the director demands that a person pay to the government, 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) 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 government out of each payment of the amount stipulated by the director in the demand.

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 the taxpayer in the taxpayer's capacity as a trustee.

(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 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 to pay under subsection (2) or (4).

(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

(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 government in compliance with a demand under this section is deemed to have been paid by that person to the taxpayer.

Notice of enforcement proceedings

58 (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.

Limitation period

59 (1) In this section, “proceeding” means

(a) an action for the recovery of taxes,

(b) the filing of a certificate,

(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.

Application for injunction

60 The minister may apply to the Supreme Court for an injunction ordering a person who sells or offers to sell fuel in British Columbia to cease selling or offering to sell fuel until the person complies with this Act and the regulations and the person's obligations under this Act are fulfilled.

Delegation

61 (1) The director may, in writing, delegate any of the director's powers or duties under this Act.

(2) The delegation under subsection (1) may be to a named person or to a class of persons.

Confidentiality

62 A person who has custody or control over information or records under this Act must not disclose the information or records to any other person except

(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,

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

(e) for the purpose of the compilation of statistical information by the government or the government of Canada.

Service of notices

63 (1) If service of a notice or other document is required or authorized under this Act or the regulations, the notice or document is conclusively deemed to have been served if

(b) sent by registered mail to the last known address of the person according to the records of the director.

(2) If service of a notice or other document on the minister is required or authorized under this Act or the regulations, the notice or document is conclusively deemed to have been served if delivered to the office of the deputy minister.

(3) If service is by registered mail, the notice or document is conclusively deemed to be served 14 days after its deposit in a Canada Post Office at any place in Canada.

(4) If a person carries on business under a name or style other than the person's own name, the notice or document 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 employed at the place of business of the addressee.

(5) If persons carry on business in partnership, the notice or document 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 employed at the place of business of the partnership.

Demand for information

63.1 (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) 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

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

Offences

(3) A person who contravenes section 62 commits an offence and is liable to a fine of not more than $2 000.

(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, hides or otherwise disposes of a record or book of accounts of a vendor, wholesale dealer or retail dealer;

(c) in a record or book of accounts of a purchaser, vendor, wholesale dealer or retail dealer, 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 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, 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;

(f) conspires with any person to do anything described in paragraphs (a) to (e).

(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.

(6) In a prosecution under subsection (4), a certificate signed by the director stating the amount of tax referred to in subsection (5) (b) is evidence of the amount of tax referred to in subsection (5) (b).

Onus of proof

65 In a prosecution for failure to collect, remit or pay money under this Act, the onus is on the accused to prove that the money was collected by the accused or was paid or remitted, as the case may be, to the government.

Analyst and certificate of analysis

66 (1) The minister may designate a person as an analyst for the purpose of the enforcement of this Act.

(2) In a prosecution under this Act, a certificate of an analyst stating that the analyst has analyzed or examined a substance submitted to the analyst and stating the results of the analysis or examination is evidence of the statements contained in the certificate.

(3) The party against whom a certificate of an analyst is produced under subsection (2) may, with leave of the court, require the attendance of the analyst for the purpose of cross examination.

(4) A certificate must not be received in evidence under subsection (2) unless the party intending to produce it has, before the trial, given to the party against whom it is intended to be produced reasonable notice of that intention together with a copy of the certificate.

Evidence

67 (1) In a prosecution brought against a collector or registered consumer, his or her application for appointment or registration is evidence that the person charged is a collector or consumer appointed or registered under this Act.

(2) In a prosecution a notice of assessment is evidence that the amount stated in the notice of assessment is due and owing.

Offence by corporation

68 An officer, director, employee or agent of a corporation who directs, authorizes, assents to, acquiesces in or participates in the commission of an offence is

Time limit on prosecution

69 No prosecution for an offence against this Act or the regulations may be instituted more than 6 years after the day the alleged offence was committed.

Section 5 of the Offence Act

70 Section 5 of the Offence Act does not apply to this Act or the regulations.

Power to make regulations

71 (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 records to be kept by collectors, wholesale dealers, retail dealers, registered consumers and holders of motive fuel user permits;

(b) requiring persons who sell fuel to furnish prescribed information to purchasers;

(c) prescribing the method of payment, collection and remittance of tax on fuel or of a security and any other conditions or requirements affecting the payment, collection and remittance of tax or of a security and may prescribe different methods, conditions or requirements for different classes of persons or different types of fuel;

(c.1) prescribing circumstances in which a person or class of persons must not pay or collect the security referred to in sections 38 to 40;

(d) establishing a system of permits for retail dealers, wholesale dealers and vendors who sell fuel that is not taxable under this Act and, in relation to this,

(i) prohibiting these dealers and vendors from acquiring and selling fuel in British Columbia unless authorized by a permit,

(ii) prohibiting persons from selling fuel to these dealers and vendors unless the dealer or vendor is authorized to sell the fuel by a permit,

(iii) prescribing different requirements, limits and conditions in relation to different classes of permits for retail dealers, for wholesale dealers and for vendors, and

(iv) providing for the issue, refusal to issue, suspension and cancellation by the director of the permits;

(e) providing for the issue, refusal to issue, suspension and cancellation by the director of

(ii) motive fuel user permits, motive fuel decals and temporary motive fuel user emblems,

(f) respecting the duties of licensed carriers, holders of motive fuel user permits, temporary motive fuel user emblems, family farm truck emblems or a class of them;

(g) providing for a refund of tax or a portion of tax to be made, in circumstances other than those described in sections 20 to 24, to any person or class of person;

(h) prescribing the records and material to be provided on an application for a refund of tax;

(i.1) authorizing exemptions and refunds under section 5 (3) and respecting any matter or thing that the Lieutenant Governor in Council considers necessary for the implementation and administration of those exemptions and refunds;

(k) exempting any person or class of person from section 16 and prescribing the conditions of exemption;

(k.1) prescribing types of motor vehicles for the purposes of section 15 (1) (d) and (e), based on the make, description or use of those vehicles or any combination of those things;

(i) is used in prescribed circumstances for a purpose for which coloured fuel is authorized to be used under section 15 (1), and

(m) respecting the conditions subject to which dye is furnished, the manner of colouring fuel and the places in which fuel may be coloured;

(n) prohibiting the sale of fuel as coloured fuel if the fuel is not coloured in the prescribed manner;

(o) requiring reports to be made by persons authorized under section 14 to colour fuel and requiring the marking of equipment or containers used for coloured fuel;

(o.1) defining alternative motor fuels by naming the fuel or by reference to environmental benefits, market share or other criteria set out in the regulations;

(o.2) subject to section 10.1 (4), prescribing the rate of tax on alternative motor fuels, which may be different for different types of fuel or different uses of fuel;

(o.4) prescribing the circumstances in which a fuel or class of fuel is exempt from tax;

(q) prescribing the periods for which an authorization may be suspended by the director under section 14 (4);

(r) respecting any matter or thing that the Lieutenant Governor in Council considers necessary for the implementation or administration of the International Fuel Tax Agreement;

(s) prescribing one or more classes of carriers or classes of vehicles for the purposes of section 16 (3), subject to the terms and conditions the Lieutenant Governor in Council specifies;

(t) prescribing the form of the licence application referred to in section 19 including, without limitation, the terms and conditions of the licence that an applicant, by submitting the application, agrees to comply with and to be bound by;

(ii) the terms and conditions applicable to a carrier licence, with power to prescribe different terms and conditions for different classes of licensees,

(iii) the consequences of failing to perform those duties and obligations or of failing to comply with those terms and conditions, and

(iv) any other matter that the Lieutenant Governor in Council considers necessary or appropriate in relation to the issuing, renewing, suspending, cancelling or reinstating of carrier licences;

(v) prescribing the duration of carrier licences and carrier decals issued by the director;

(w) prescribing the fees for applying for, issuing and renewing carrier licences and carrier decals;

(x) respecting any matter or thing that the Lieutenant Governor in Council considers necessary for or in relation to the payment to the Greater Vancouver Transportation Authority or to the regional transit commission for the Victoria regional transit service area of the tax imposed under sections 4 (1) (c) and 10 (1) (c) or section 12.1 (2) respectively;

(y) prescribing interest rates and the manner of calculating interest for the purposes of this Act.

*Contents*
Section
Part 1 — Definitions and Application
1	Definitions
2	Application of Act
3	[Repealed]
3.1	Tax on alcohol based fuel and compressed natural gas
Part 2— Imposition and Amount of Tax
4	Tax on gasoline
5	Tax on coloured fuel
6	Tax on marine diesel fuel and locomotive fuel
7	Tax on jet fuel
8	Tax on aviation fuel
9	Tax on natural gas
10	Tax on motive fuel
10.1	Tax on alternative motor fuel
11	Marine bunker fuel exemption
12	Greater Vancouver Transportation Authority tax arrangements
12.1	Victoria regional transit service area tax arrangements
13	Additional tax for transportation infrastructure construction
13.1	[Repealed]
Part 3— Coloured Fuel and Motive Fuel
14	Authority to colour fuel
15	Prohibition against unauthorized use of coloured fuel
15.1	Authority to use coloured fuel in certain vehicles provided clear fuel tax rate is paid
16	Permit or licence required to bring fuel into British Columbia
Part 4— International Fuel Tax Agreement
17	Minister may enter into agreement
18	Payments by minister
19	Issue of licences and decals to carriers
Part 5— Refunds
20	Refund of taxes paid in error
20.1	Refund of taxes in accordance with Nisga'a Nation Taxation Agreement
20.2	Refunds when joint and several liability
21	Refund or deduction for bad debts
22	Refund where fuel used for certain purposes
23	Person with disabilities
24	Motive fuel refund
25	Claim for refund
26	Refund limits
27	Refund of tax or an amount equal to tax paid by mistake of law
Part 6— Collection of Tax
28	Appointment of vendors as collectors
29	Prohibition against relabelling
30	Cancellation of collector's appointment
31	Exemption for locomotive fuel
32	Exemption of collector and appointment
33	Deputy collectors
34	Duties of retail dealers, collectors and deputy collectors
35	Remittance of tax
35.1	Collections
36	Allowance for collecting tax
37	Registered consumer
38	Security from collector
39	Security from a deputy collector
40	Security from retail dealer
Part 7— Tax Collection Administration
41	Inspection and audit powers
42	Estimate of unremitted tax
43	Assessment of tax
44	Failure to collect taxes or pay security
45	Penalty for failure to remit or pay taxes
45.1	Board member's liability
45.2	Deemed board member
46	Notice of assessment
46.1	Assessment against boardmember
47	Irregularities
48	Interest on money payable
49	Inspection powers
Part 8— Appeals
50	Appeal to minister
51	Appeal to court
52	Pending appeal not to affect tax collection
Part 9— Recovery of Taxes
53	Collection bond
54	Court action to recover money
55	Summary proceedings without action
56	Alternate remedies
57	Attachment of funds
58	Notice of enforcement proceedings
59	Limitation period
60	Application for injunction
Part 10— General
61	Delegation
62	Confidentiality
63	Service of notices
63.1	Demand for information
Part 11— Offences and Penalties
64	Offences
65	Onus of proof
66	Analyst and certificate of analysis
67	Evidence
68	Offence by corporation
69	Time limit on prosecution
70	Section 5 of the Offence Act
Part 12— Regulations
71	Power to make regulations