1. (1) In this Act
"assessment" includes reassessment;
"catalyst" means a substance that produces or modifies a chemical reaction and that, at the end of the reaction, is unchanged;
"collector" means a person who has collected taxes under this Act;
"commissioner" means the person appointed by the Lieutenant Governor in Council to administer this Act;
"computer software" means packaged or prewritten computer software programs that are designed for general application, or the right to use those programs, and includes modifications to those programs and modifications of those programs for a particular purchaser or lessee, but does not include a computer software program that is designed and developed solely to meet the specific requirements of the purchaser or lessee;
"direct agent" means a substance that produces or modifies a chemical reaction and that is consumed in the chemical reaction to the point of destruction or dissipation or uselessness for any other purpose;
"fixture" means machinery, equipment or apparatus that is
(a) installed in or attached to a building, structure or land, and
(b) used directly in the manufacture, production, processing, storage, handling, packaging, display, transportation, transmission or distribution of tangible personal property or in the provision of a service
but does not include machinery, equipment or apparatus installed for the purpose of heating, air conditioning, lifting of passengers or freight by elevator or escalator, lighting or sewage disposal in a building or structure;
"lease" means an agreement under which a person is given a right to use tangible personal property, but does not include
(a) a lease of tangible personal property where, as part of the agreement between the parties, the person supplying the tangible personal property supplies a person to operate it, or
(b) the leasing of furnishings where
(i) the furnishings are leased under an agreement to lease a house, apartment or other residential accommodation, and
(ii) the rent payments under the lease are not divided into separate amounts for the accommodation and the furnishings;
"lease price" means the total consideration paid by the lessee to the person granting a lease for each rental period under a lease for the right to use the leased property and includes
(a) any payment or consideration or part of a payment or consideration that is, or is expressed to be, a licence fee or royalty fee,
(a.1) any payment or consideration, in addition to those made for rental periods, by a lessee to a person granting a lease for the right to use the leased property, including a down payment,
(a.2) any payment or consideration, including a membership fee, that is in addition to payments or consideration for rental periods, a substantial benefit of which is a reduction in the lease price of tangible personal property,
(b) any payment or consideration or part of a payment or consideration that is based or calculated on a measure of the use made by the lessee of the leased property, and
(c) where the property is leased outside the Province and subsequently brought, sent into or received in the Province for use in the Province, the charges to the lessee for customs, excise, transportation, service and other similar costs incurred by him before he uses the leased property in the Province;
"legal services" means
(a) services that come within the meaning of the practice of law under the Legal Profession Act,
(b) services described in section 15 of the Notaries Act, and
(c) legally related services prescribed as legal services,
but does not include services provided by a person to that person's employer in the course of employment;
"lessee" means a person who leases tangible personal property
(a) for his own use in the Province,
(b) for the use in the Province by other persons at his expense, or
(c) on behalf of, or as the agent for, a principal who desires to lease the property for use in the Province by that principal or other persons at the principal's expense;
"lessor" means a person who, in the ordinary course of his business in the Province, leases tangible personal property to a lessee in the Province;
"line" includes, in relation to telecommunication services, the space between a transmitter and receiver of telecommunication services;
"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,
and includes tailings but does not include petroleum, natural gas, building and construction stone, marble, shale, clay, sand, gravel, volcanic ash, earth, soil, marl or peat;
"minister" means the Minister of Finance;
"mistake of law" includes any mistake that is not solely a mistake of fact;
"motor vehicle" means motor vehicle as defined in the Motor Vehicle Act;
"park", in respect of a motor vehicle, does not include storage where the motor vehicle is stored for a period of more than 28 consecutive days;
"parking right" means the right to park a motor vehicle at a parking site for a period of time of any length;
"parking site" means any location within a prescribed geographic area in the Province, at which a motor vehicle may, for a price or other consideration, be parked for a period of time of any length;
"passenger vehicle" means a motor vehicle designed primarily as a means of transport for individuals and includes vehicles prescribed as passenger vehicles;
"person" includes Her Majesty in right of the Province and a municipality;
"promotional distribution" means the provision by a person to another person of tangible personal property that is provided for one or more of the following purposes:
(a) to describe, promote or encourage the purchase, consumption or use of tangible personal property, services or real property;
(b) to furnish or distribute to a person a catalogue, directory, listing or compilation of persons, places, prices, services, commodities or places of business in respect of the purchase, consumption or use of tangible personal property, services or real property; or
(c) for a purpose, function or use prescribed by the Lieutenant Governor in Council as a promotional distribution;
"promotional distributor" means a person who provides, by way of promotional distribution to a person, tangible personal property the purchase price of which
(a) exceeds the amount of the payment specifically made for it by the person to whom that tangible personal property is so provided; or
(b) is not specifically charged to and required to be paid by the person to whom that tangible personal property is provided;
"purchase price" means
(a) in relation to tangible personal property, a price in money, and also the value of services rendered, the actual value of the tangible personal property exchanged, acquired or repossessed, and other consideration accepted by the seller or person from whom the property passes as price or on account of the price of the tangible personal property covered by the sale and, in addition,
(i) those of the following charges, whether or not those charges are shown separately on the invoice recording the sale or in the seller's books, that are incurred at or before the time that title to the tangible personal property covered by the sale passes under that sale:
(A) transportation and installation of the tangible personal property sold;
(B) interest, finance, service, customs and excise charges in relation to the tangible personal property sold,
(ii) if the tangible personal property is purchased, manufactured, processed or otherwise acquired outside the Province and subsequently brought or sent into or received in the Province for use or consumption in the Province, the costs and expenses of and to the user for materials, labour and other manufacturing and processing costs and expenses, and for service, customs, excise, transportation and other costs and expenses incurred by the user before the use of the tangible personal property in the Province,
(b) in relation to legal services,
(i) the fees and charges, other than those prescribed as excluded, and
(ii) the prescribed disbursements
that are billed or otherwise charged to a purchaser for or in relation to the legal services,
(c) in relation to a parking right, a price in money, and also the value of services rendered, the actual value of the tangible personal property exchanged, acquired or repossessed, and other consideration accepted by a seller of a parking right as price or on account of the price of the parking right, and
(d) in relation to a taxable service, a price in money, and also the value of services rendered, the actual value of the tangible personal property exchanged, acquired or repossessed, and other consideration accepted by a seller of a taxable service as price or on account of the price of the taxable service;
"purchaser" means
(a) a person who acquires tangible personal property at a sale in the Province
(i) for the person's own consumption or use,
(ii) for consumption or use by another person at the expense of the person acquiring the property, or
(iii) on behalf of or as agent for a principal, if the property is for consumption or use by the principal or by another person at the expense of that principal,
(b) a promotional distributor that does not come within paragraph (a), to the extent that the purchase price of the tangible personal property provided by way of promotional distribution exceeds the amount of the payment specifically made for it by the person to whom that property is provided,
(c) a person who agrees to pay or is otherwise obliged to pay consideration for legal services
(i) provided to the person for the person's own benefit or use,
(ii) provided to another recipient for that recipient's benefit or use at the person's expense, or
(iii) provided to the person on behalf of or as agent for a principal, if the legal services are for the benefit or use of the principal or another person at the expense of that principal,
(d) a person who agrees to pay or is otherwise obliged to pay consideration for a parking right
(i) provided to the person for the person's own benefit or use,
(ii) provided to another recipient for that recipient's benefit or use at the person's expense, or
(iii) provided to the person on behalf of or as agent for a principal, if the parking right is for the benefit or use of the principal or another person at the expense of that principal, and
(e) a person who agrees to pay or is otherwise obliged to pay consideration for a taxable service
(i) provided to the person for the person's own benefit or use,
(ii) provided to another recipient for that recipient's benefit or use at the person's expense, or
(iii) provided to the person on behalf of or as agent for a principal, if the taxable service is for the benefit or use of the principal or another person at the expense of that principal;
"retail sale" means a sale to a purchaser for purposes of consumption or use and not for resale;
"sale" includes a conditional sale and a transfer of title or possession, conditional or otherwise, including a sale on credit or where the price is payable by instalments, an exchange, barter or any other contract whereby at a price or other consideration a person delivers to another tangible personal property and includes a transfer of ownership of, title to, or possession of, tangible personal property
(a) given as security, by foreclosure, or by repossession under lien note or conditional sale contract, whether voluntary or otherwise, or by order of a court, or by any other means whereby security may be realized, and
(b) in the process of winding up, liquidating or dissolving a corporation,
and the provision, by way of promotional distribution, of tangible personal property;
"sale price" means purchase price;
"tangible personal property" means
(a) personal property that can be seen, weighed, measured, felt or touched, or that is in any other way perceptible to the senses, and includes fixtures and natural or manufactured gas,
(b) computer software,
(c) electricity, and
(d) telecommunication services, including cable television services;
"tax" or "taxes" includes all penalties and interest that are or may be added to tax or taxes under this Act; and in the definition of "collector" and in sections 3, 5, 6, 8, 12, 16 to 22.1, 24 to 29, 33, 34, 36, 37 and 39 (1) to (1.3), (2) and (2.1), but not in any other provision of this Act, "tax" or "taxes" also includes levy or levies under section 2.4 and all penalties and interest that are or may be added to a levy or levies under this Act;
"taxable service" means any service provided to install, assemble, dismantle, repair, adjust, restore, recondition, refinish or maintain tangible personal property, but does not include any service
(a) provided to install tangible personal property that will become real property on installation,
(b) provided to install, assemble, dismantle, repair, adjust, restore, recondition, refinish or maintain prescribed tangible personal property, or
(c) provided by a person to that person's employer in the course of employment;
"transfer of possession" includes transactions held by the commissioner to be in lieu of a transfer of title, exchange or barter;
"use" includes
(a) the exercise of any right or power over tangible personal property incidental to the ownership of it other than the sale of the property,
(b) the leasing by a person of tangible personal property to another person,
(c) the storing, keeping or retaining of tangible personal property for any purpose,
(d) the provision of tangible personal property by way of promotional distribution, as well as the use of it by the person to whom the tangible personal property is so provided,
except that use does not include
(e) the exercising of a right or power over or the storing, keeping or retaining of tangible personal property that was brought into the Province for the sole purpose of subsequently transporting it out of the Province for use outside the Province,
(f) the exercising of a right or power over or the storing, keeping or retaining of tangible personal property that was brought into the Province for the sole purpose of being processed, fabricated or manufactured into, or attached to or incorporated into, other tangible personal property that is to be transported outside the Province for use solely outside the Province,
(g) the storing, keeping or retaining of tangible personal property that was brought into the Province for the sole purpose of being repaired and, after repair, being transported outside the Province for use outside the Province, and
(h) the storing, keeping or retaining of tangible personal property for the sole purpose of resale;
"user" means a person who, in the Province, utilizes tangible personal property for his own consumption or use, or for the consumption or use of other persons at his expense, or on behalf of, or as the agent for, a principal who desires to acquire such property for the consumption or use by the principal or other persons at his expense, and includes a promotional distributor to the extent that the purchase price of the tangible personal property provided by way of promotional distribution exceeds the amount of the payment specifically made for it by the person to whom the tangible personal property is so provided;
"vehicle" means vehicle as defined in the Motor Vehicle Act;
"vendor" means a person, including an assignee, liquidator, administrator, receiver, receiver manager, trustee or other like person, who, in the ordinary course of his business, in the Province, sells tangible personal property to a purchaser at a retail sale in the Province.
(1.1) For the purposes of the definition of "fixture" in subsection (1) "apparatus" means a complex machine or device designed to accomplish a specific purpose and consisting of an integrated assembly of parts each having a definite function.
(2) In respect of a transaction that is in part a lease of tangible personal property under which a person, "the exhibitor", is given the right or authority to exhibit a motion picture to others, the total consideration that is paid by the exhibitor to the person with whom he entered into the transaction and that is not otherwise included in the definition of lease price, is conclusively deemed to be part of the lease price.
(3) For the purposes of this Act, any of the following is proof, in the absence of evidence to the contrary, that an individual resides in the Province:
(a) the receipt by the individual of a grant under section 2 of the Home Owner Grant Act;
(b) the receipt by a person of a grant in respect of the individual's residence and for the individual's benefit under section 3, 3.1 or 3.2 of the Home Owner Grant Act;
(c) the enrollment of the individual as a beneficiary under the medical services plan continued under the Medical and Health Care Services Act.
Historical Note(s): RS1960-361-2; 1962-57-2; 1965-50-15; 1970-44-20; 1978-7-1; 1981-8-1, effective March 10, 1981, see transitional provisions, 1981-8-6, 7; 1981-29-1, proclaimed effective July 24, 1981; 1982-39-1, effective April 6, 1982; 1983-20-49, effective December 1, 1983 (B.C. Reg. 453/83); 1985-32-1(a) to (c), effective March 15, 1985; 1985-32-1(d), effective April 1, 1985; 1987-17-1, effective March 20, 1987, see transitional provision, 1987-17-11; 1987-18-15(a), effective July 24, 1981, per 1989-79-13; 1987-18-15(b); 1988-25-1; 1988-45-28; 1989-13-1,2; 1990-15-6; 1990-27-10; 1992-7-22; 1992-22-1; 1992-68-11; 1993-14-12; 1993-24-2,15; 1993-69-1; 1994-16-16; 1994-37-20.
1.1 The commissioner may appoint an employee of the government as a deputy commissioner and may delegate to a deputy commissioner any of the duties and powers exercisable by the commissioner under this Act.
Historical Note(s): 1992-68-12.
2. (1) A purchaser shall pay to Her Majesty in right of the Province at the time of making the purchase a tax at the rate of 7% of the purchase price of the property purchased.
(1.01) Notwithstanding any other provision of this section, the rate of the tax payable under subsections (1) and (4) on liquor, as defined by the Liquor Distribution Act, is 10%.
(1.02) Notwithstanding any other provision of this section, the rate of the tax payable under subsections (1) and (4) on a passenger vehicle is
(a) 7% of the purchase price of the vehicle where the purchase price is less than $32 000,
(b) 8% of the purchase price of the vehicle where the purchase price is $32 000 or more but less than $33 000,
(c) 9% of the purchase price of the vehicle where the purchase price is $33 000 or more but less than $34 000, or
(d) 10% of the purchase price of the vehicle where the purchase price is $34 000 or more.
(1.1) to (1.4) [Repealed 1983-27-1, effective July 8, 1983.]
(1.5) [Repealed 1988-25-4.]
(1.6) [Repealed 1993-69-2.]
(1.7) Subject to subsection (1.9), where a purchaser, after March 30, 1993, takes delivery of tangible personal property and pays to Her Majesty in right of the Province tax on that tangible personal property under this section, the commissioner, on application and on receipt of evidence satisfactory to the commissioner, shall, out of the consolidated revenue fund, pay to the purchaser a refund calculated in accordance with subsection (1.8) where
(a) the tangible personal property of which delivery is taken is to be incorporated into real property in order to carry out a fixed price or lump sum contract entered into before March 31, 1993 for the construction, repair or improvement of real property, or
(b) delivery is taken, in execution of a written contract made by the purchaser with the seller before March 31, 1993, of not more than the quantity of the tangible personal property specified in the contract.
(1.8) The refund payable to a purchaser under subsection (1.7) shall be equal to
(a) in the case of tangible personal property other than liquor, as defined in the Liquor Distribution Act, or a passenger vehicle, 1% of the purchase price of that property, or
(b) in the case of a passenger vehicle,
(i) 1% of the purchase price of the vehicle where the tax was paid under subsection (1.02) (a),
(ii) 2% of the purchase price of the vehicle where the tax was paid under subsection (1.02) (b),
(iii) 3% of the purchase price of the vehicle where the tax was paid under subsection (1.02) (c), and
(iv) 4% of the purchase price of the vehicle where the tax was paid under subsection (1.02) (d).
(1.9) No refund shall be paid under subsection (1.7) (a) where the purchaser is entitled, under the fixed price or lump sum contract, to recover the increase in tax resulting from the enactment of section 2 of the Social Service Tax Amendment Act, 1993.
(2) [Repealed 1983-27-1, effective July 8, 1983.]
(3) If a person sells tangible personal property at a retail sale in the Province to a person who alleges that he is not purchasing it for consumption or use, he shall nevertheless require that person to pay the tax, but the payment shall be refunded by the commissioner on receipt of satisfactory evidence that the tax was wrongly paid.
(3.1) Subject to subsections (4) and (15) and section 2.1, a person who acquired, in or outside the Province, tangible personal property on which tax was not payable under this Act, other than by reason of section 4 (1), and who becomes, for any period, a user of that property shall, at the time he becomes a user, be deemed a purchaser of that property and shall pay tax on the purchase price of that property at the rate in section 2 (1).
(3.2) For the purposes of subsections (3.1) and (4) (b) "use" in the definition of "user" in section 1 includes the employment or utilization of tangible personal property by its owner, his employee or an independent contractor retained by the owner, in the course of carrying out work or performing services for another person.
(3.3) to (3.33) [Repealed 1994-16-17.]
(3.4) Where a bona fide farmer, aquaculturist or commercial fisherman uses or permits tangible personal property prescribed under section 4 (1) (c) or (c.1) or referred to in section 4 (1) (d), as the case may be, to be used for a use other than that which permitted the farmer, aquaculturist or fisherman to obtain the property exempt from tax under these sections, he shall at the time he so uses the property, pay tax on the purchase price of that property at the rate under this Act.
(i) resides, ordinarily resides or carries on business in the Province or enters the Province with the intention of residing or carrying on business in the Province, and
(ii) brings or sends into the Province or receives delivery in the Province of tangible personal property for use or consumption
(B) by another person at his expense,
(C) by another person for whom he acts as agent, or
(D) by another person at the expense of a principal for whom he acts as agent, or
(b) who uses in the Province in the course of his business, whether or not his business is carried on in the Province, tangible personal property
(i) that he has not leased, as lessee, and
(ii) that he brought or had sent into the Province or that he received delivery of in the Province
shall immediately report the matter in writing to the commissioner, supply to the commissioner all pertinent information required by him in respect of the tangible personal property and pay to Her Majesty in right of the Province, at the time or within the period specified in subsection (4.013), tax calculated in accordance with subsections (4.01) to (4.012).
(4.01) The tax payable under subsection (4) on an aircraft used
(a) interprovincially or internationally for commercial purposes, and
(b) in flights originating or terminating in the Province or connecting 2 or more points in the Province
shall be calculated in accordance with the following formula:
| Tax = | P x BCH x R |
| TH |
P = purchase price of the aircraft;
BCH = the number of hours the aircraft will fly in the airspace over the Province in the flights referred to in paragraph (b) during the period beginning on the entry date of the aircraft and ending on the third anniversary of that date;
R = the rate in subsection (1) on the entry date of the aircraft;
TH = the total number of hours the aircraft will fly during the period referred to in the definition of "BCH".
(4.02) The tax payable under subsection (4) on a part of an aircraft referred to in subsection (4.01) shall be calculated in accordance with the following formula:
| Tax = | P x BCH x R |
| TH |
P = the purchase price of the part;
BCH = the number of hours the aircraft in which the part is or is to be installed will fly in the airspace over the Province in the flights referred to in subsection (4.01) (b) during,
(a) in the case of a prescribed part, the period beginning on the entry date of the prescribed part and ending on the third anniversary of that date, and
(b) in any other case, the 12 months after the entry date of the part;
R = the rate in subsection (1) on the entry date of the part;
TH = the total number of hours the aircraft in which the part is or is to be installed will fly during the period referred to in the definition of "BCH".
(4.03) The tax payable under subsection (4)
(a) on any railway rolling stock used interprovincially or internationally, or
(iii) any other conveyance other than an aircraft
used in interprovincial or international trade for the commercial carriage of passengers or goods
shall be calculated in accordance with the following formula:
| Tax = | P x BCD x R |
| TD |
P = purchase price of the conveyance;
BCD = the distance the conveyance will travel, during the 12 months after its entry date, in the Province or, if the conveyance is a vessel, in the waters of the Province;
R = the rate in subsection (1) on the entry date of the conveyance;
TD = the total distance the conveyance will travel during the 12 months after its entry date.
(4.04) Where the ratio of the distance a vehicle referred to in subsection (4.03) (b) (i) will travel in the Province during a 12 month period to the total distance it will travel during that period will exceed the ratio used to calculate the tax payable on the vehicle in respect of a previous 12 month period, the person liable to pay the tax shall pay additional tax calculated in accordance with subsection (4.03), except that the difference between the ratio of those distances for the period in which the increase occurred and the previous highest ratio used to calculate the tax payable on the vehicle shall be substituted in the formula for
(4.05) Tax payable under subsection (4) on a part of
(c) any railway rolling stock, or
(d) any other conveyance
described in subsection (4.03) shall be calculated in accordance with the following formula:
| Tax = | P x BCD x R |
| TD |
P = the purchase price of the part;
BCD = distance the conveyance in which the part is or is to be installed will travel, during the 12 months after the entry date of the part, in the Province or, if the conveyance is a vessel, in the waters of the Province;
R = the rate in subsection (1) on the entry date of the part;
TD = the total distance the conveyance in which the part is or is to be installed will travel during the 12 months after the entry date of the part.
(4.06) For the purpose of calculating under subsections (4.01) to (4.05) the tax payable under subsections (4) and (4.04),
(a) the number of hours or the distance a conveyance will travel during the relevant period in the airspace over, in the waters of or in the Province, and
(b) the total number of hours or the total distance the conveyance will travel during the period referred to in paragraph (a)
shall be based on a reasonable estimate of those hours or distances.
(4.07) Where the actual number of hours or the actual distance a conveyance travels during the relevant period in the airspace over, in the waters of or in the Province and the total actual number of hours or the total actual distance the conveyance travels during that period results in a different ratio from the ratio based on the estimate made under subsection (4.06), the tax shall be adjusted accordingly at the end of that period and sections 25, 27 and 39 apply.
(4.08) Where the person liable under subsection (4) to pay tax on tangible personal property, other than property described in subsections (4.01) to (4.05), establishes to the satisfaction of the commissioner that the property is brought or sent into, or is delivered in, the Province for temporary use, the tax payable on that property shall be calculated in accordance with the following formula:
| Tax = | P x R |
| 3 |
P = the purchase price of the property;
R = the rate in subsection (1) on the entry date of the property.
(4.09) The tax shall be calculated under subsection (4.08) separately for each 12 month period during any part of which the tangible personal property is in the Province, but the person is not liable
(a) to pay tax on the property if it is in the Province during that period for fewer than a prescribed number of days, or
(b) to pay to the Province an aggregate amount of tax on that property in excess of an amount equal to
P = the purchase price of the property or, in respect of prescribed tangible personal property referred to in section 2.3 (1), the deemed purchase price of that property on its entry date;
R = the rate in subsection (1) on the entry date of the property;
A = the retail sales tax the person has paid on the property to another province.
(4.011) Subsection (4.08) does not apply in respect of tangible personal property that is brought or sent into, or delivered in, the Province to be used as a part of any other tangible personal property.
(4.012) Tax payable under subsection (4) on tangible personal property, other than tangible personal property to which subsections (4.01) to (4.09) apply, shall be calculated by multiplying the purchase price of the tangible personal property by the rate in subsection (1) on the entry date of the property.
(4.013) Tax is payable under subsection (4),
(a) for tangible personal property that is described in subsection (4.01) or is a prescribed part referred to in subsection (4.02), in instalments that are calculated in the prescribed manner and are payable at prescribed intervals over a period of 3 years,
(b) for tangible personal property that is a part, other than a prescribed part, referred to in subsection (4.02), within 15 days, or other prescribed period, after the last day of the month in which the part is brought or sent into, or is delivered in, the Province,
(c) for tangible personal property described in subsection (4.03) (b) (i) or referred to in subsection (4.04), on the date the vehicle is required to be licensed to operate in the Province for the use referred to in subsection (4.03),
(d) for tangible personal property described in subsection (4.03), other than that referred to in paragraph (c), within 15 days, or other prescribed period, after the last day of the month in which the property is brought or sent into, or is delivered in, the Province,
(e) for tangible personal property described in subsection (4.08), within 15 days, or other prescribed period, after the day the property is first used in the Province during the 12 month period in respect of which tax is payable, and
(f) in any other case, on the entry date of the tangible personal property
and, if more tax is required to be paid when tax calculated under subsections (4.01) to (4.05) is adjusted under subsection (4.07), the additional tax is payable within 15 days, or other prescribed period, after the date the tax is adjusted.
(4.014) Notwithstanding any other provision of this section, a person who purchases in the Province or is deemed under subsection (3.1) to be a purchaser of an aircraft, vehicle, vessel, railway rolling stock or other conveyance and who, from the date of purchase or the date he is deemed to be a purchaser, uses the conveyance in interprovincial or international trade for the commercial carriage of passengers or goods shall pay, on the date of purchase in the Province or at the time specified in subsection (3.1) or (4.013) (c), tax calculated in accordance with subsection (4.01), (4.03) or (4.04).
(4.015) If a person is liable to pay additional tax in respect of a vehicle by reason of an adjustment in accordance with subsection (4.07), any other person who, during the time to which the additional tax relates, had
(a) management of the vehicle while it was in the Province, or
(b) the right to determine the utilization of the vehicle while it was in the Province
shall be jointly and severally liable for the additional tax with any other person liable for that tax.
(4.016) A person who does not reside, ordinarily reside or carry on business in the Province who brings or sends into the Province or receives delivery in the Province of tangible personal property shall immediately report the matter in writing to the commissioner, supply to the commissioner all pertinent information required by the commissioner in respect of the tangible personal property and pay to Her Majesty in right of the Province tax on the purchase price of the tangible personal property at a rate established under subsection (1) or (1.02), as the case may be, if
(i) owns, or leases under a lease having a term of not less than 12 months, real property in the Province,
(ii) owns, or leases under a lease having a term of not less than 12 months, a site in the Province at which a boat may be moored,
(iii) has acquired a right to moor a boat at one or more sites in the Province, which right continues in effect throughout a period of not less than 12 months,
(iv) leases, under a lease having a term of not less than 12 months, a site in the Province at which a recreational vehicle may be parked or otherwise situated, or
(v) has acquired a right to park or otherwise situate a recreational vehicle at one or more sites in the Province, which right continues in effect throughout a period of not less than 12 months, and
(b) the tangible personal property brought, sent or delivered into the Province is, for the 12 month period following its entry into the Province, to be used or consumed primarily in the Province and to be used or consumed primarily by that person or by any other person or persons
(i) for whom that person acts as agent, or
(ii) whose use or consumption of the tangible personal property is at the expense of that person or at the expense of a principal for whom that person acts as agent.
(4.1) For the purposes of subsection (4), a person shall be deemed to be carrying on business in the Province where an employee or other representative of that person carries on activities in the Province on that person's behalf for the purpose of promoting the sale or use of that person's products or services.
(4.2) [Repealed 1992-7-26.]
(5) Where the minister deems fit, he may make a valuation of tangible personal property that passes at a sale and thereupon the sale price for the purpose of taxation under this Act shall be as determined by the minister.
(6) [Repealed 1986-23-17.]
(6.1) to (6.4) [Repealed 1988-25-4.]
(7) [Repealed 1983-27-1, effective July 8, 1983.]
(8) The tax imposed by this Act shall be calculated separately on every purchase, and shall be computed to the nearest cent, and 1/2¢ shall be counted as 1¢, but where, on the same occasion or as part of one transaction, several items of tangible personal property are purchased, the total of the purchases shall be deemed one purchase for the purposes of this Act.
(9) If tangible personal property, on which the purchaser has previously paid the applicable tax, is accepted at the time of sale by the seller on account of the price of the property sold, the purchaser shall pay a tax at the rate of
(a) 7% of the difference between the purchase price of the property sold and the credit allowed for the tangible personal property accepted on account of the purchase price in trade, or
(b) if the property sold is a passenger vehicle,
(i) 7% of that difference if the purchase price of the property sold is less than $32 000,
(ii) 8% of that difference if the purchase price of the property sold is $32 000 or more but less than $33 000,
(iii) 9% of that difference if the purchase price of the property sold is $33 000 or more but less than $34 000, or
(iv) 10% of that difference if the purchase price of the property sold is $34 000 or more.
(9.1) to (9.3) [Repealed 1994-16-17].
(10) Where a person purchases ready-mixed concrete which is to be delivered by or on behalf of the vendor to the place where the purchaser intends to use it, for the purposes of this Act the purchase price shall be deemed to include the total consideration payable by the purchaser to have the ready-mixed concrete delivered to that place.
(11) Where liquor, as defined in the Liquor Distribution Act, is acquired for sale under a special occasion licence, the holder of that licence or his agent shall, at the time the licence is purchased,
(a) inform the authorized branch representative of the amount of the total proceeds expected from the sale of the liquor at the special occasion, and
(b) pay to that representative an amount equal to the additional tax that would be collectable under this Act based on the expected proceeds of the sales.
(12) Where the amount of tax collectable on the actual sale of the liquor in respect of which payment was made under subsection (11) is less than the amount of the payment under subsection (11), the commissioner may, out of the consolidated revenue fund, refund the amount of the difference.
(13) In this section "entry date", in relation to any tangible personal property, means the date on which the person liable to pay the tax on the property first brings or sends the property into, or receives delivery of the property in, the Province.
(14) In subsections (4.09) and (4.013) (e) "12 month period", in relation to any tangible personal property, means
(a) the period beginning on the date the property is first brought or sent into, or is delivered in, the Province during any year and ending on the day before the first anniversary of that date, and
(b) where the property is in the Province for a continuous period that is longer than the period referred to in paragraph (a), the period beginning on the day after the immediately previous 12 month period and ending on the day before the first anniversary of that date.
(15) A purchaser of private dedicated telecommunication services transmitted over a line that is located partly outside British Columbia shall pay to Her Majesty in right of the Province tax in accordance with subsections (16) and (17).
(16) The tax payable under subsection (15) shall be calculated in accordance with the following formula:
| Tax = | P x BCD x R |
| TD |
P = the purchase price of the private dedicated telecommunication services referred to in subsection (15);
BCD = the distance of the line over which the private dedicated telecommunication services are transmitted that is within British Columbia;
R = the rate in subsection (1) on the date the purchase price for the private dedicated telecommunication services is payable;
TD = the total distance of the line over which the private dedicated telecommunication services are transmitted.
(17) If the purchase price for telecommunication services is only partly payable for private dedicated telecommunication services referred to in subsection (15), the commissioner may determine the portion of the purchase price attributable to those private dedicated telecommunication services.
Historical Note(s): RS1960-361-3; 1962-57-3; 1965-50-15; 1976-51-1; 1978-7-2; 1979-31-1; 1980-49-12, effective May 17, 1980; 1980-52-1, effective midnight March 11, 1980, see transitional provisions, 1980-52-7,8; 1981-8-2 (h), effective March 10, 1978, see transitional provision, 1981-8-7; 1981-8-2 (a) to (g), (i) to (k), effective March 10, 1981, see transitional provisions, 1981-8-6,7; 1981-29-2, proclaimed effective July 24, 1981; 1982-39-2, effective April 6, 1982; 1983-20-50, effective December 1, 1983 (B.C. Reg. 453/83); 1983-27-1, effective July 8, 1983; 1985-32-2, effective March 15, 1985; 1986-23-16, effective March 21, 1986; 1986-23-17; 1987-17-2(a),(c),(e),(f), effective March 20, 1987; 1987-17-2(g); [amended 1987-17-2(b),(d), not in force, amendments not included]; 1988-25-2,4; 1989-13-3; 1989-79-1 to 4; 1990-15-7 to 9; 1992-7-23 to 26; 1992-22-3 to 5; see transitional provision, 1992-22-15; 1993-14-13; 1993-69-2; 1994-16-15,17; 1994-37-21.
2.01 (1) This section applies to legal services provided in British Columbia after May 31, 1992 for which the purchase price is paid by or billed or otherwise charged to the purchaser before February 26, 1993.
(2) If the purchaser or recipient of legal services referred to in subsection (1) resides, ordinarily resides or carries on business in British Columbia, a tax on the provision of the legal services shall be paid to Her Majesty in right of the Province by the purchaser at the rate of 6% of the purchase price.
(3) A purchaser who would otherwise be liable to pay tax under subsection (2) is exempt from that tax if the legal services do not relate to British Columbia.
(4) For the purposes of subsection (3), legal services relate to British Columbia if they involve any of the following:
(a) real property situated in British Columbia;
(b) tangible personal property, within the meaning of paragraph (a) of the definition of tangible personal property, that is ordinarily situated within British Columbia or that is to be delivered in British Columbia, or the contemplation of either of these circumstances;
(c) the ownership, possession or use in British Columbia of property other than that referred to in paragraphs (a) and (b), or the right to use such property in British Columbia, or the contemplation of any of these;
(d) a court or administrative proceeding in British Columbia or a possible such proceeding;
(e) the incorporation or contemplated incorporation of a corporation under the Company Act or the Society Act, or the registration or contemplated registration of a corporation as an extraprovincial company under the Company Act or as an extraprovincial society under the Society Act;
(f) a matter that involves the interpretation or application of an enactment as defined in the Interpretation Act or a former or proposed such enactment;
(g) a matter that involves the interpretation or application of an enactment, or a former or proposed enactment, of a jurisdiction other than British Columbia, if the matter is in relation to
(i) a physical or legal presence in British Columbia or a contemplated such presence,
(ii) an activity in British Columbia or a contemplated such activity, or
(iii) a transaction in British Columbia or a contemplated such transaction;
(h) a matter that involves the analysis or application of any law other than that referred to in paragraphs (f) and (g), if the matter is in relation to
(i) a physical or legal presence in British Columbia or a contemplated such presence,
(ii) an activity in British Columbia or a contemplated such activity, or
(iii) a transaction in British Columbia or a contemplated such transaction;
(i) a contract or covenant, or a contemplated contract or covenant, that is in relation to
(i) a physical or legal presence in British Columbia or a contemplated such presence,
(ii) an activity in British Columbia or a contemplated such activity, or
(iii) a transaction in British Columbia or a contemplated such transaction;
(j) any other matter intended for the benefit or use in British Columbia of the purchaser or recipient.
(a) the purchaser or recipient of the legal services referred to in subsection (1) resides, ordinarily resides or carries on business outside British Columbia as well as in British Columbia, and
(b) part of the legal services relates to a jurisdiction other than British Columbia in the same manner as legal services relate to British Columbia within the meaning of subsection (4),
the purchaser is exempt from tax under subsection (2) in relation to that portion of the purchase price which is for legal services that relate to the other jurisdiction.
(6) If neither the purchaser nor the recipient of legal services referred to in subsection (1) resides, ordinarily resides or carries on business in British Columbia, a tax on the provision of the legal services shall be paid to Her Majesty in right of the Province by the purchaser at the rate of 6% of the purchase price if the legal services relate to one or more of the following:
(a) real property situated in British Columbia;
(b) tangible personal property, within the meaning of paragraph (a) of the definition of tangible personal property, that is ordinarily situated within British Columbia or that is to be delivered in British Columbia;
(c) a court or administrative proceeding in British Columbia;
(d) the incorporation of a corporation under the Company Act or the Society Act, or the registration of a corporation as an extraprovincial company under the Company Act or as an extraprovincial society under the Society Act.
(7) The tax under subsection (2) or (6) shall be paid before July 1, 1993.
(8) If there is more than one purchaser of legal services in relation to which subsection (2) or (6) applies, each purchaser is jointly and severally liable for the tax imposed by the applicable subsection.
(9) For the purposes of this section, a person shall be deemed to be carrying on business in British Columbia if an employee or other representative of the person carries on activities in British Columbia on that person's behalf for the purpose of promoting the sale or use of the person's products or services.
(10) If the person providing legal services does so as a partner in a partnership or as an employee of an individual, partnership or corporation, a reference in this Act to that person shall be deemed to be a reference to the individual, partnership or corporation.
(11) For the purposes of applying the other provisions of this Act in relation to a tax imposed by this section,
(a) the receiving of legal services for consideration is deemed to be a purchase, and
(b) the provision of legal services for consideration is deemed to be a sale of tangible personal property at a retail sale,
except that sections 2 and 39 (1.2) do not apply to a purchase or sale of legal services.
(12) The commissioner may, in accordance with the regulations, refund from the consolidated revenue fund to a collector the portion of the amount sent by the collector to the commissioner in respect of taxes payable under this section that the purchaser has failed to pay to the collector.
(13) No tax is payable under this section in relation to legal services provided to an individual to the extent that the purchase price for the services is paid by the Legal Services Society, or by a funded agency within the meaning of the Legal Services Society Act, for the purposes of section 3 of that Act.
Historical Note(s): 1993-24-3.
2.011 (1) This section applies to legal services provided outside British Columbia after May 31, 1992 for which the purchase price is paid by or billed or otherwise charged to the purchaser before February 26, 1993.
(a) resides, ordinarily resides or carries on business in British Columbia, and
(b) is the purchaser of legal services referred to in subsection (1) that involve any of the matters referred to in section 2.01 (4) (a) to (j)
shall pay a tax to Her Majesty in right of the Province in respect of the legal services, with the tax calculated as 6% of the purchase price of the legal services.
(a) the person referred to in subsection (2) resides, ordinarily resides or carries on business outside British Columbia as well as in British Columbia, and
(b) part of the legal services referred to in subsection (1) relates to a jurisdiction other than British Columbia in the same manner as legal services relate to British Columbia within the meaning of section 2.01 (4),
the person is exempt from tax under subsection (2) in relation to that portion of the purchase price which is for legal services that relate to the other jurisdiction.
(4) The tax under subsection (2) shall be paid before July 1, 1993.
(5) As an exception to subsection (4), if the person providing the legal services does not collect the tax under subsection (2), the purchaser shall pay the tax by delivering it to the commissioner by July 15, 1993.
(6) Section 2.01 (8) to (13) applies in relation to the tax under subsection (2).
Historical Note(s): 1993-24-3.
2.012 (1) This section applies to legal services provided after March 31, 1993.
(2) If the purchaser or recipient of legal services provided in British Columbia resides, ordinarily resides or carries on business in British Columbia, a tax on the provision of the legal services shall be paid to Her Majesty in right of the Province by the purchaser at the rate of 7% of the purchase price.
(3) If neither the purchaser nor the recipient of legal services provided in British Columbia resides, ordinarily resides or carries on business in British Columbia, a tax on the provision of the legal services shall be paid to Her Majesty in right of the Province by the purchaser at the rate of 7% of the purchase price if the legal services are in relation to one or more of the following:
(a) real property situated in British Columbia;
(b) tangible personal property, within the meaning of paragraph (a) of the definition of tangible personal property, that is ordinarily situated within British Columbia or that is to be delivered in British Columbia, or the contemplation of either of these;
(c) the ownership, possession or use in British Columbia of property other than that referred to in paragraphs (a) and (b), or the right to use such property in British Columbia, or the contemplation of any of these;
(d) a court or administrative proceeding in British Columbia or a possible such proceeding;
(e) the incorporation or contemplated incorporation of a corporation under the Company Act or the Society Act, or the registration or contemplated registration of a corporation as an extraprovincial company under the Company Act or as an extraprovincial society under the Society Act;
(f) any other matter that relates to British Columbia and is prescribed as being included for the purposes of this section.
(4) The tax under subsection (2) or (3) shall be paid by the date on which the purchase price of the legal services is paid or payable, whichever is earlier.
(5) The purchase price for legal services shall be deemed to be payable when it is billed or otherwise charged to the purchaser.
(6) As an exception to subsection (4), if the person providing the legal services is not obliged to and does not collect the tax under subsection (2) or (3), the purchaser shall pay the tax by delivering it to the commissioner by the 15th day of the month following the month in which the tax is otherwise required to be paid by subsection (4).
(7) If there is more than one purchaser of legal services in relation to which subsection (2) or (3) applies, each purchaser is jointly and severally liable for the tax imposed by the applicable subsection.
(8) For the purposes of this section, a person shall be deemed to be carrying on business in British Columbia if an employee or other representative of the person carries on activities in British Columbia on that person's behalf for the purpose of promoting the sale or use of the person's products or services.
(9) If the person providing legal services does so as a partner in a partnership or as an employee of an individual, partnership or corporation, a reference in this Act to that person shall be deemed to be a reference to the individual, partnership or corporation.
(10) For the purposes of applying the other provisions of this Act in relation to a tax imposed by this section,
(a) the receiving of legal services for consideration is deemed to be a purchase, and
(b) the provision of legal services for consideration is deemed to be a sale of tangible personal property at a retail sale,
except that section 2 does not apply to a purchase of legal services.
(11) No tax is payable under this section in relation to legal services provided to an individual to the extent that the purchase price for the services is paid by the Legal Services Society, or by a funded agency within the meaning of the Legal Services Society Act, for the purposes of section 3 of that Act.
Historical Note(s): 1993-24-16.
2.013 (1) This section applies to legal services provided after March 31, 1993.
(a) resides, ordinarily resides or carries on business in British Columbia, and
(b) is the purchaser of legal services provided outside British Columbia that relate to British Columbia
shall pay a tax to Her Majesty in right of the Province in respect of the legal services, with the tax calculated as 7% of the purchase price of the legal services.
(3) For the purposes of subsection (2), legal services relate to British Columbia if they relate to any of the following:
(a) a matter referred to in section 2.012 (3) (a) to (f);
(b) a matter that involves the interpretation or application of an enactment as defined in the Interpretation Act or a former or proposed such enactment;
(c) a matter that involves the interpretation or application of an enactment, or a former or proposed enactment, of a jurisdiction other than British Columbia, if the matter is in relation to
(i) a physical or legal presence in British Columbia or a contemplated such presence,
(ii) an activity in British Columbia or a contemplated such activity, or
(iii) a transaction in British Columbia or a contemplated such transaction;
(d) a matter that involves the analysis or application of any law other than that referred to in paragraphs (b) and (c), if the matter is in relation to
(i) a physical or legal presence in British Columbia or a contemplated such presence,
(ii) an activity in British Columbia or a contemplated such activity, or
(iii) a transaction in British Columbia or a contemplated such transaction;
(e) a contract or covenant, or a contemplated contract or covenant, that is in relation to
(i) a physical or legal presence in British Columbia or a contemplated such presence,
(ii) an activity in British Columbia or a contemplated such activity, or
(iii) a transaction in British Columbia or a contemplated such transaction.
(a) the person referred to in subsection (2) resides, ordinarily resides or carries on business outside British Columbia as well as in British Columbia, and
(b) part of the legal services referred to in subsection (2) relates to a jurisdiction other than British Columbia in the same manner as legal services relate to British Columbia within the meaning of subsection (3),
the person is exempt from tax under subsection (2) in relation to that portion of the purchase price which is for legal services that relate to the other jurisdiction.
(5) For the purposes of subsection (4), the person shall
(a) make a reasonable estimate, subject to the regulations, of that portion of the purchase price which relates to legal services referred to in subsection (4) (b),
(b) make and retain a record of the estimate and the basis on which it is made, and
(c) if the person who provided the legal services is required by this Act to collect the tax payable, provide a copy of the record to that person.
(6) Section 2.012 (4) to (11) applies in relation to the tax under subsection (2).
Historical Note(s): 1993-24-16.
2.02 (1) If a purchaser
(a) acquires tangible personal property
(i) from another person, or
(ii) through another person acting as agent of the purchaser, and
(b) within 6 months before or after acquiring the tangible personal property, enters into a contract with the other person or an associate of the person under which the original tangible personal property referred to in paragraph (a) is processed, fabricated or manufactured into, or attached to or incorporated into, other tangible personal property by that other person or associate,
the purchaser shall pay to Her Majesty in right of the Province, in addition to tax payable on the original tangible personal property but subject to subsection (2), tax at the rate of 7% of all amounts payable under the contract for or in relation to the resulting tangible personal property.
(2) Tax is not payable under subsection (1) if the purchaser satisfies the commissioner that, at the time the tangible personal property referred to in subsection (1) (a) was acquired, the purchaser did not have an intention to enter into the contract referred to in subsection (1) (b).
(3) In cases to which subsection (1) does not apply, if a purchaser of tangible personal property enters into an agreement with the seller of the property or an associate of the seller
(i) part of the contract to acquire the tangible personal property, or
(ii) a separate contract entered into within 2 days before or after entering into the contract to acquire the tangible personal property, and
(b) under which the seller or an associate of the seller is to modify or process the tangible personal property,
the purchaser shall pay to Her Majesty in right of the Province tax calculated in accordance with subsection (3.1).
(3.1) The tax payable under subsection (3) shall be calculated as follows:
(a) where the tangible personal property referred to in subsection (3) is not a passenger vehicle, at the rate of 7% of the contract amount;
(b) where the tangible personal property referred to in subsection (3) is a passenger vehicle, at the rate of
(i) 7% of the contract amount where the purchase price of the vehicle is less than $32 000,
(ii) 8% of the contract amount where the purchase price of the vehicle is $32 000 or more but less than $33 000,
(iii) 9% of the contract amount where the purchase price of the vehicle is $33 000 or more but less than $34 000, and
(iv) 10% of the contract amount where the purchase price of the vehicle is $34 000 or more.
(3.2) For the purposes of subsection (3.1) "contract amount" means the aggregate of all amounts payable under the contract referred to in subsection (3) for or in relation to the modification or processing referred to in subsection (3) (b).
(4) Tax is not payable under subsection (1) or (3) on that portion of the amounts payable under the contract for tangible personal property on which tax is otherwise payable by the purchaser under this Act.
(5) Tax under subsection (1) or (3) shall be paid, in respect of each amount payable under the contract, by the date on which the amount is paid or payable, whichever is earlier.
(6) This section does not apply if the tangible personal property in its resulting form after completion of the contract referred to in subsection (1) or (3) would be exempt from tax under this Act.
(7) If a person referred to in section 2 (3.4) uses or permits tangible personal property prescribed under section 4 (1) (c) or (c.1) or referred to in section 4 (1) (d) to be used for a use other than that which permitted subsection (6) to apply, the person shall pay to Her Majesty in right of the Province at the time the property is so used tax at the rate then in effect under this section on the amounts on which tax would have been payable under this section but for subsection (6).
(8) For the purposes of this Act, other than section 2,
(a) the matters for which an amount referred to in subsection (1) or (3) of this section is payable are deemed to be a sale of tangible personal property at a retail sale,
(b) an amount referred to in paragraph (a) of this subsection is deemed to be a purchase price, and
(c) the person with whom the purchaser enters into a contract referred to in subsection (1) or (3) is deemed to be a vendor in relation to the matters referred to in paragraph (a).
Historical Note(s): 1992-68-13; 1993-69-3; 1994-16-15.
2.03 (1) Unless subsection (2) applies, a purchaser of a parking right shall pay to Her Majesty in right of the Province a tax at the rate of 7% of the purchase price of the parking right.
(2) Subject to the terms and conditions the Lieutenant Governor in Council specifies in the regulations, no tax is payable under subsection (1) in respect of a parking right purchased
(a) for residential parking as that term is defined in the regulations,
(b) for parking at a prescribed parking site, or
(c) by a person who is a member of a prescribed class of persons.
(3) The tax under subsection (1) shall be paid at the time the purchase price for the parking right is paid or by the date on which the purchase price is payable, whichever is earlier.
(4) Where the commissioner considers it appropriate to do so, the commissioner may make a valuation of a parking right that passes at a sale, and the sale price of the parking right for the purposes of taxation under this Act shall be as determined by the commissioner.
(5) The tax imposed by this Act shall be calculated separately on every purchase of a parking right, and shall be computed to the nearest cent, and 1/2¢ shall be counted as 1¢, but where, on the same occasion or as part of one transaction, several parking rights are purchased, the total of the purchases shall be deemed one purchase for the purposes of this Act.
(6) For the purposes of applying the other provisions of this Act in relation to a tax imposed by this section,
(a) the receiving of a parking right for consideration is deemed to be a purchase, and
(b) the provision of a parking right for consideration is deemed to be a sale of tangible personal property at a retail sale,
except that section 2 does not apply to a purchase of a parking right.
Historical Note(s): 1993-69-4.
2.04 (1) A tax on the provision of a taxable service in the Province shall be paid to Her Majesty in right of the Province by a purchaser at the rate of 7% of the purchase price of the taxable service.
(2) The tax payable under subsection (1) shall be paid at the time the purchase price of the taxable service is paid or by the date on which the purchase price is payable, whichever is earlier.
(3) A purchaser for whom a taxable service is performed after September 30, 1993 but before October 1, 1994 in execution of a written contract made with the seller of the taxable service before March 31, 1993 shall pay to Her Majesty in right of the Province at the time referred to in subsection (2) tax at the rate payable under this section, but the commissioner, on application and on receipt of evidence satisfactory to the commissioner, shall, out of the consolidated revenue fund, pay to the purchaser a refund of the tax paid.
(a) resides, ordinarily resides or carries on business in the Province,
(b) takes or sends tangible personal property out of the Province
(i) primarily for the purpose of having taxable service provided in respect of the property, and
(ii) has taxable service provided in respect of the property, and
(c) brings or sends into the Province or receives delivery in the Province of the property referred to in paragraph (b) for use or consumption
(i) by the person,
(ii) by another person at the person's expense,
(iii) by another person for whom the person acts as agent, or
(iv) by another person at the expense of a principal for whom the person acts as agent,
shall immediately report the matter in writing to the commissioner, supply to the commissioner all pertinent information required by the commissioner in respect of the taxable service provided in respect of the property and shall, on the date that the tangible personal property is returned to the Province under paragraph (c), pay to Her Majesty in right of the Province a tax in respect of the taxable service, with the tax calculated as 7% of the purchase price of the taxable service.
(5) A person who takes or sends tangible personal property out of the Province primarily for the purpose of using that tangible personal property outside of the Province for a period of time is exempt from tax under this section in respect of any taxable service provided in respect of the tangible personal property while it is out of the Province during that period.
(6) Subject to the terms and conditions the Lieutenant Governor in Council specifies in the regulations, no tax is payable under subsection (1) or (4) in respect of
(a) a prescribed taxable service, or
(b) a taxable service purchased by a person who is a member of a prescribed class of persons.
(7) For the purposes of subsection (4), a person shall be deemed to be carrying on business in the Province where an employee or other representative of that person carries on activities in the Province on that person's behalf for the purpose of promoting the sale or use of that person's products or services.
(8) Where the commissioner considers it appropriate to do so, the commissioner may make a valuation of a taxable service that passes at a sale, and the sale price of the taxable service for the purpose of taxation under this Act shall be as determined by the commissioner.
(9) The tax imposed by this Act shall be calculated separately on every purchase of a taxable service, and shall be computed to the nearest cent, and 1/2¢ shall be counted as 1¢, but where, on the same occasion or as part of one transaction, several taxable services are purchased, the total of the purchases shall be deemed one purchase for the purposes of this Act.
(10) For the purposes of applying the other provisions of this Act in relation to a tax imposed by this section,
(a) the receiving of a taxable service for consideration is deemed to be a purchase, and
(b) the provision of a taxable service for consideration is deemed to be a sale of tangible personal property at a retail sale,
except that section 2 does not apply to a purchase of a taxable service.
Historical Note(s): 1993-69-5.
2.1 (1) A lessee shall pay to Her Majesty in right of the Province a tax,
(a) where the leased property is not a passenger vehicle, at the rate of 7% of the lease price of the leased property, or
(b) where the leased property is a passenger vehicle, at the rate of
(i) 7% of the lease price where the tax rate value of the vehicle is less than $32 000,
(ii) 8% of the lease price where the tax rate value of the vehicle is $32 000 or more but less than $33 000,
(iii) 9% of the lease price where the tax rate value of the vehicle is $33 000 or more but less than $34 000, or
(iv) 10% of the lease price where the tax rate value of the vehicle is $34 000 or more.
(1.1) For the purposes of subsection (1)
"tax rate value", in respect of a passenger vehicle,
(a) means the price at which the legal and beneficial interest in the vehicle would, if unencumbered, be conveyed by a willing seller acting in good faith to a willing buyer acting in good faith in an arm's length retail sale in the open market,
(b) shall be determined under paragraph (a) as at the later of
(i) March 31, 1993, and
(ii) the first date on which the vehicle is leased by the lessor, and
(c) is, for so long as the lessor remains the owner of the vehicle, the tax rate value determined for the vehicle under paragraphs (a) and (b).
(i) resides, ordinarily resides or carries on business in the Province or enters the Province with the intention of residing or carrying on business in the Province, and
(ii) brings or sends into the Province or receives delivery in the Province of tangible personal property that he has leased, as lessee, or
(b) who uses in the Province in the course of his business, whether or not his business is carried on in the Province, tangible personal property that he has leased, as lessee
shall immediately report the matter in writing to the commissioner, supply to the commissioner all pertinent information required by him in respect of the leased property and pay to Her Majesty in right of the Province, at the time specified in subsection (5), tax calculated in accordance with subsections (3), (3.01) and (5).
(3) The tax payable under subsection (2) shall be calculated
(a) in the case of an aircraft used
(i) interprovincially or internationally for commercial purposes, and
(ii) in flights originating or terminating in the Province or connecting 2 or more points in the Province,
by multiplying the lease price by the ratio of the number of hours the aircraft will fly in a rental period in the airspace over the Province in the flights referred to in paragraph (a) (ii) to the total number of hours the aircraft will fly in that period and by the rate in subsection (1) on the date the lease price for that period is paid,
(b) in the case of a vessel used in interprovincial or international trade for the commercial carriage of passengers or goods, by multiplying the lease price by the ratio of the distance the vessel will travel in the waters of the Province in a rental period to the total distance the vessel will travel in that period and by the rate in subsection (1) on the date the lease price for that period is paid,
(c) in the case of any railway rolling stock used interprovincially or internationally, by multiplying the lease price by the ratio of the distance the railway rolling stock will travel in the Province in a rental period to the total distance the railway rolling stock will travel in that period and by the rate in subsection (1) on the date the lease price for that period is paid,
(c.1) in the case of a vehicle or any other conveyance used in interprovincial or international trade for the commercial carriage of passengers or goods, other than an aircraft, a vessel or any railway rolling stock, by multiplying the lease price by the ratio of the distance the conveyance will travel in the Province in a rental period to the total distance the conveyance will travel in that period and by the rate in subsection (1) on the date the lease price for that period is paid, and
(d) in the case of any other tangible personal property, by multiplying the lease price by the ratio of the number of hours the tangible personal property is in the Province in a rental period to the total number of hours in that period and by the rate in subsection (1) on the date the lease price for that period is paid.
(3.01) Section 2 (4.06) applies for the purpose of calculating under subsection (3) the tax payable under subsection (2) in respect of an aircraft, vehicle, vessel, any railway rolling stock or other conveyance and section 2 (4.07) applies in respect of that tax.
(3.02) If more tax is required to be paid when tax calculated under subsection (3) is adjusted in accordance with section 2 (4.07), the additional tax is payable within 15 days, or other prescribed period, after the date the tax is adjusted.
(3.03) If a person is liable to pay additional tax in respect of a vehicle by reason of an adjustment in accordance with section 2 (4.07), any other person who, during the time to which the additional tax relates, had
(a) management of the vehicle while it was in the Province, or
(b) the right to determine the utilization of the vehicle while it was in the Province
shall be jointly and severally liable for the additional tax with any other person liable for that tax.
(3.1) [Repealed 1992-7-28.]
(4) [Repealed 1987-17-3(d), effective March 20, 1987.]
(5) Tax imposed under this section shall be calculated separately for each payment of the lease price payable for each rental period of the lease and the tax is payable at the time of each payment of the lease price.
(5.1) Where the minister considers that a lease price is lower than the market value for a lease of the leased property, he may determine a market value, and that value shall be the lease price for the purpose of taxation under this Act.
(6) [Repealed 1983-27-2, effective July 8, 1983.]
(7) amd (8) [Repealed 1988-25-4.]
(9) Notwithstanding subsection (1), a lessee who comes within any of the following descriptions shall pay tax calculated in accordance with subsections (3), (3.01) and (5):
(i) leases in the Province any railway rolling stock, and
(ii) from the date the lease is granted, uses the railway rolling stock interprovincially or internationally;
(i) leases in the Province an aircraft, and
(ii) from the date the lease is granted, uses the aircraft interprovincially or internationally for commercial purposes;
(i) leases in the Province a vehicle, vessel or other conveyance, other than railway rolling stock or an aircraft, and
(ii) from the date the lease is granted, uses the conveyance in interprovincial or international trade for the commercial carriage of passengers or goods.
(10) The lessee of a conveyance described in section 2 (4.03) who
(a) became lessee by selling the conveyance to the lessor under a sale and immediate lease-back arrangement, and
(b) had, before the sale to the lessor, paid as purchaser of the conveyance the tax applicable under section 2,
shall pay to Her Majesty in right of the Province, in respect of a rental period of the lease, tax in accordance with subsections (5) and (11) to (13) if the ratio of the distance of travel by the conveyance in the Province or in the waters of the Province during the rental period to the total distance of travel by the conveyance during that period exceeds the highest ratio of distances, as adjusted under section 2 (4.07) if applicable, used to determine the tax payable by the lessee under section 2.
(11) The tax payable under subsection (10) shall be calculated in accordance with the following formula:
| Tax = LP x R x (LDR – PDR) |
LP = the payment of the lease price payable for the rental period;
R = the rate in subsection (1) on the date the lease price for the rental period is payable;
LDR = the ratio of the distance of travel by the conveyance in the Province or in the waters of the Province during the rental period to the total distance of travel by the conveyance during that period;
PDR = the highest ratio of distances, as adjusted under section 2 (4.07) if applicable, used to determine the tax payable by the lessee under section 2.
(12) For the purpose of calculations under subsections (10) and (11), the distances of travel during a rental period shall be
(a) the actual distances travelled in the case of a rental period for which the lease price is payable at the end of or after the end of the rental period, and
(b) an estimate made in accordance with section 2 (4.06) of the distances to be travelled in any other case.
(13) Section 2 (4.07) applies in respect of tax payable under subsection (10).
Historical Note(s): 1981-29-3, proclaimed effective July 24, 1981; 1983-27-2, effective July 8, 1983; 1986-23-18, effective March 21, 1986; 1987-17-3(a),(d), effective March 20, 1987; 1987-17-3(c); note: see transitional provision, 1987-17-11; [amended 1987-17-3(b), not in force, amendment not included]; 1988-25-4; 1989-13-4; 1989-79-5,6; 1990-14-1; 1990-15-10,11; 1992-7-27,28; 1992-22-7,8, see transitional provision, 1992-22-15; 1993-69-6; 1994-16-15,18.
2.2 (1) Where a lessee breaches a lease that provides for
(a) the lease of tangible personal property, and
(b) the payment of the whole of the outstanding balance of the lease price on breach of the lease,
the lessee shall pay to Her Majesty in right of the Province, at the time the payment referred to in paragraph (b) comes due, a tax at the rate of 7% of the amount of the outstanding balance of the lease price.
(2) Notwithstanding sections 2.1 (5) and 7, the lessor shall collect the tax imposed under subsection (1) at the time the payment referred to in subsection (1) (b) comes due.
(3) Where a lessee does not pay the tax as required under subsection (1) and the lessor receives an amount in respect of the payment referred to in subsection (1) (b) in a judgment, settlement or by any other way, the lessor shall remit the lesser of
(a) as appropriate
(i) an (ii) [Repealed 1993-69-7.]
(iii) 6% of the amount received where the payment referred to in subsection (1) (b) comes due after March 19, 1987 and before March 31, 1993, or
(iv) 7% of the amount received where the payment referred to in subsection (1) (b) comes due after March 30, 1993, and
(b) the amount of the tax that would have been payable under section 2.1 if the lease had continued to the end of its term.
Historical Note(s): 1982-39-3, effective April 6, 1982; 1983-27-3, effective July 8, 1983; 1987-17-4(a), effective March 20, 1987; [amended 1987-17-4(b), not in force, amendment not included]; 1990-15-12; 1993-69-7.
2.3 (1) Where prescribed tangible personal property, other than property acquired for resale, becomes subject to tax under section 2 (3.1), (3.4), (4), or (4.04), the purchase price of the property shall be deemed to be the greater of the following amounts:
(a) the depreciated value, determined in accordance with the regulations, of the prescribed tangible personal property on the date it becomes subject to tax under that subsection;
(b) 50% of the purchase price of the prescribed tangible personal property.
(1.1) For the purpose of calculating under section 2 (4.08) the tax payable in respect of each 12 month period on prescribed tangible personal property referred to in subsection (1), the date on which that property becomes subject to tax is
(a) the first day during that period in which that property is in the Province, or
(b) where that property is in the Province for a continuous period of more than 12 months, the first day of that continuous period.
(2) The Lieutenant Governor in Council may make regulations that he considers necessary or advisable to determine depreciated values for the purposes of subsection (1).
Historical Note(s): 1989-13-5; 1989-79-7.
2.4 (1) In this section
"hazardous product" means a substance that is prescribed as a hazardous product for the purpose of subsection (6);
"lead-acid battery" does not include
(a) a lead-acid battery purchased only for the purpose of using it to power an electric wheelchair or other similar personal conveyance for use by disabled individuals,
(b) a rebuilt or reconditioned lead-acid battery, or
(c) a lead-acid battery weighing less than 2 kg;
"pneumatic tire" means a pneumatic tire designed for use on a vehicle and includes a pneumatic or other type of spare tire for a vehicle, but does not include a retreaded pneumatic tire.
(2) Subsections (6) to (12) do not apply in respect of a hazardous product that is purchased in a form, or in a manner, or in both a form and a manner, designed primarily for household use.
(3) Paragraph (d) of the definition of use does not apply
(a) for the purpose of subsections (6) and (7), or
(b) in relation to a hazardous product, for the purpose of subsections (11) and (12).
(4) A purchaser of one or more new pneumatic tires shall pay to Her Majesty in right of the Province at the time of making the purchase a levy of $3 for each new pneumatic tire purchased.
(5) A purchaser of one or more new lead-acid batteries shall pay to Her Majesty in right of the Province at the time of making the purchase a levy of $5 for each new lead-acid battery purchased.
(6) A purchaser of a hazardous product shall pay to Her Majesty in right of the Province at the time of making the purchase a levy at the prescribed rate per unit of product.
(7) A person (the "first person")
(i) resides, ordinarily resides or carries on business in the Province or enters the Province with the intention of residing or carrying on business in the Province, and
(ii) brings or sends into the Province or receives delivery in the Province of a hazardous product for use or consumption
(A) by the first person,
(B) by another person at the first person's expense,
(C) by another person for whom the first person acts as agent, or
(D) by another person at the expense of a principal for whom the first person acts as agent, or
(b) who uses in the Province in the course of the first person's business, whether or not that business is carried on in the Province, a hazardous product that the first person brought or had sent into the Province or that the first person received delivery of in the Province
shall immediately report the matter in writing to the commissioner, shall supply to the commissioner all pertinent information required by the commissioner in respect of the hazardous product and shall pay to Her Majesty in right of the Province, on the first date on which the first person brings or sends the hazardous product into, or receives delivery of the hazardous product in, the Province, the appropriate levy under subsection (6).
(8) A levy under this section in respect of a purchase of new pneumatic tires, of new lead-acid batteries or of hazardous products
(a) is additional to any tax under section 2 in respect of that purchase, and
(b) for the purposes of the tax under section 2, shall not be considered as part of the purchase price.
(9) For the purposes of this section,
(a) any sale of a vehicle to which one or more new pneumatic tires are attached, or in connection with which one or more new pneumatic tires are supplied, is a sale of each of the new pneumatic tires,
(b) any sale of tangible personal property to which one or more new lead-acid batteries are attached, or in connection with which one or more new lead-acid batteries are supplied, is a sale of each of the new lead-acid batteries, and
(ii) use or consumption under subsection (7)
of a mixture containing one or more hazardous products is a sale, use or consumption, as the case may be, of as much of each of the hazardous products as is contained in the mixture.
(10) For the purposes of this section, a pneumatic tire or lead-acid battery shall be considered as new from the time of its manufacture until immediately after its acquisition at its first retail sale anywhere.
(11) A person who acquired, in the Province, a new pneumatic tire, a new lead-acid battery or a hazardous product in a transaction in which a levy was not payable under this section and who becomes, for any period, a user of that tire, battery or product shall, at the time the person becomes a user, be deemed a purchaser at the first retail sale of that tire, battery or product and shall pay the appropriate levy under this section.
(12) A person who brings or sends into the Province or receives delivery in the Province of a hazardous product on which a levy was not payable under this section and who becomes, for any period, a user of that product shall, at the time the person becomes a user, be deemed a purchaser at the first retail sale of that product and shall pay the appropriate levy under this section.
Historical Note(s): 1990-27-11.
2.5 (1) A lessee who leases a passenger vehicle shall, in addition to any tax payable under section 2.1, pay to Her Majesty in right of the Province for the raising of revenue for the BC Transportation Financing Authority established under the Build BC Act a tax of $1.50 for each day or portion of a day that the lessee leases the vehicle.
(2) Subsection (1) does not apply where the passenger vehicle that is the subject matter of the lease is leased to the lessee for a period of more than 28 consecutive days.
(3) The tax imposed under this section is payable at the time of each payment of the lease price.
Historical Note(s): 1993-3-34.
3. (1) A vendor shall not sell tangible personal property in the Province at a retail sale and a lessor shall not lease tangible personal property in the Province unless he has been granted on his application in the form required by the commissioner a registration certificate under authority of this Act and the certificate is in force at the time of sale.
(2) The registration certificate shall be issued by the commissioner and shall be kept at the principal place of business of the vendor or the lessor in the Province and shall not be transferable.
(2.1) Where the commissioner considers, due to a previous failure of a vendor or a class of vendor to comply with this Act, that there is a significant risk that an applicant for registration may not collect or remit taxes under this Act, the commissioner may, as a condition of registration, require the applicant to deposit a bond by way of cash or other security, and, where the commissioner requires that a bond be deposited, section 26 applies.
(2.2) The commissioner may cancel or suspend a registration certificate granted under this section to a person who does not hold, or refuse to grant a registration certificate to a person who does not hold, the provincial and municipal registrations, licences and permits that that person is required by the regulations to hold in order to be eligible for a certificate.
(3) The commissioner may, with the approval of the minister, cancel or suspend a registration certificate granted to a person under this section or refuse to grant a registration certificate to a person who
(a) has committed an offence against this Act,
(b) has failed to collect or remit, when required, tax imposed under this Act, or
(c) has failed to post the security required under section 26.
(4) A person shall not dispose of his stock through a sale in bulk without first obtaining a certificate in duplicate from the commissioner that all taxes collected by that person have been paid.
(5) A person purchasing stock through a sale in bulk shall obtain from the person selling the stock the duplicate copy of the certificate furnished under subsection (4), and if he fails to do so he is responsible for payment to the commissioner of all taxes collected by the person disposing of his stock through a sale in bulk.
(6) In subsections (4) and (5) "sale in bulk" means
(a) a sale of tangible personal property by a vendor out of the usual course of his business,
(b) a sale of substantially the entire stock of tangible personal property of a vendor, or
(c) a sale of an interest in the business of a vendor.
Historical Note(s): RS1960-361-4; 1981-29-4, proclaimed effective July 24, 1981; 1983-6-30, effective October 15, 1983 (B.C. Reg. 384/83); 1985-10-12, effective May 17, 1985 (B.C. Reg. 138/85); 1986-23-19, effective March 21, 1986; 1994-16-19.
3.1 [Repealed 1992-7-29.]
4. (1) The following are exempted from taxes imposed by section 2, 2.1 or 2.2:
(a) food products for human consumption;
(b) coal and coke;
(b.1) fuel taxed under the Motor Fuel Tax Act;
(c) prescribed tangible personal property when purchased or leased by a bona fide farmer to be used and is used solely for a farm purpose;
(c.1) prescribed tangible personal property when purchased or leased by a bona fide aquaculturist to be used and is used solely for an aquaculture purpose;
(d) boats, fishing nets and other fishing apparatus utilized in catching fish for human consumption, purchased or leased by a bona fide commercial fisherman for use only in his trade;
(e) natural water;
(f) medicaments, when sold on the prescription of a physician, dentist or veterinarian, artificial limbs, orthopaedic appliances, equipment designed solely for the use of persons with a permanent disability or handicap, hearing aids and dentures; also dental and optical appliances when sold on the prescription of a dentist, optometrist or physician;
(g) [Repealed 1983-6-31(b), effective April 1, 1983 (B.C. Reg. 384/83).]
(h) a substance used as a catalyst, or as a direct agent, in a chemical reaction for the transformation or manufacture of a product for sale or lease and that is in contact with, or is temporarily incorporated into, the material being transformed or manufactured into the product;
(h.1) tangible personal property used for the purpose of being processed, fabricated or manufactured into, attached to or incorporated into other tangible personal property (other than "portable buildings" as defined in the regulations) for the purpose of retail sale or lease;
(i) grain, mill and other agricultural feeds, seeds and fertilizers;
(j) sales of tangible personal property shipped by the seller for delivery outside the Province, including ships' stores delivered to commercial vessels of more than 500 tons gross that normally operate in extra territorial waters;
(k) self propelled vessels of more than 500 tons gross;
(l) sales at a price of less than 15¢;
(m) [Repealed 1983-27-4, effective July 8, 1983.]
(n) children's footwear, as determined by regulation, and children's clothing, as determined by regulation, but not including disposable diapers that are designed for babies or young children;
(o) printed and bound books that contain no advertising and that are published solely for educational, technical, cultural or literary purposes, but not directories, price lists, time tables, rate books, catalogues, reports, fashion books, albums or any books of the same general classes;
(p) sales of used clothing or used footwear where the purchase price of the item of clothing or footwear is less than $100;
(q) magazines, periodicals and newspapers;
(r) school supplies the Lieutenant Governor in Council determines by regulation;
(s) candies and confections;
(u) [Repealed 1985-32-3.]
(v) vitamins and dietary supplements;
(w) diabetic and ostomy supplies;
(x) materials and equipment as prescribed by regulation that are used directly or indirectly for the conservation of energy;
(y) patent medicines as prescribed by regulation;
(z) telecommunication services in the form of telephone services that qualify for a residential rate, other than long distance telephone services;
(z.1) electricity and natural gas when purchased for use in a residential dwelling unit;
(z.2) used manufactured homes as defined in the regulations under circumstances prescribed by the regulations;
(z.3) fuel oil when purchased for use in a residential dwelling unit;
(z.4) specialized devices, as prescribed by the regulations, designed and purchased for use in the transportation of handicapped persons;
(z.5) self contained smoke or fire alarm devices designed for use in residential premises and selling for a unit price of under $50;
(z.6) clothing patterns and, where intended for the purpose of making or repairing clothing, yarn, natural fibres and yard good materials;
(z.7) non-motorized 2 wheel bicycles;
(z.8) work related safety equipment, as prescribed by the regulations, that is designed to be worn by a worker;
(z.9) tangible personal property that the Lieutenant Governor in Council may prescribe as exempted from taxation imposed by section 2, 2.1 or 2.2;
(z.91) bottles that are to be used to hold a milk product that is sold at a retail sale and that are returnable to and reusable by a dairy;
(z.92) telecommunication services in the form of cable television services, other than those cable television services described as
(i) pay television,
(ii) specialty service channels, or
(iii) non-programming channels
for which there is a charge in addition to the basic cable television charge;
(z.93) tangible personal property repurchased at a sale where the purchaser takes possession of it under a security instrument, and the tax applicable under section 2 at the time of the preceding purchase by that purchaser was paid by that purchaser;
(z.94) tangible personal property that would otherwise be taxable under section 2.1 or 2.2 where
(i) the tangible personal property was sold to the lessor by the lessee under a sale and immediate lease-back arrangement, and
(ii) the lessee had, before the sale to the lessor, paid as purchaser of the tangible personal property any tax applicable under section 2, except section 2 (4), on that purchase;
(z.95) balls, rods and similar detached media used for grinding ore in the process of extracting minerals from ore;
(z.96) parts designed for the repair or reconditioning of tangible personal property exempted under this section;
(z.97) magnetite when purchased for use in processing coal;
(z.98) drill bits and prescribed explosive supplies, when purchased to be used for
(i) mineral exploration, extraction or production, or
(ii) development of a mineral mine other than construction of an access road to a mine;
(z.99) aircraft powered by a turbine and parts for these aircraft;
(z.991) tangible personal property, other than aircraft or aircraft parts, purchased or leased by a commercial airline for consumption or use by its passengers, or by the airline in serving its passengers, during its interprovincial or international flights.
(1.1) Where tangible personal property, other than electricity used in an electrolytic process, is used to produce energy, it shall conclusively be deemed not to qualify for exemption under subsection (1) (h).
(1.2) Where tangible personal property, other than electricity used in an electrolytic process, is used to produce energy or is used as a source of energy, it shall conclusively be deemed not to qualify for exemption under subsection (1) (h.1).
(2) A person to whom tangible personal property is provided by way of promotional distribution is exempt from, taxes imposed by section 2, 2.1 or 2.2 on the amount by which the promotional distributor's purchase price of the tangible personal property exceeds any payment made by the person to whom the tangible personal property is provided solely and specifically for the receipt by him of that tangible personal property.
(3) A purchaser who purchases tangible personal property for the purpose only of leasing the property to other persons is exempt from the tax imposed by section 2 on that purchase.
(3.2) A purchaser who purchases a parking right is exempt from the tax imposed by section 2.03 in respect of any portion of the parking right that was purchased for the purpose only of selling it to other persons.
(3) A purchaser who purchases a taxable service is exempt from the tax imposed by section 2.04 on that purchase if the purchase is made for the purpose only of selling that taxable service to other persons.
(4) Except for tax imposed by section 2.1 (10), the lessee of a conveyance described in section 2 (4.03) who
(a) became lessee by selling the conveyance to the lessor under a sale and immediate lease-back arrangement,
(b) had, before the sale to the lessor, paid as purchaser of the conveyance the tax applicable under section 2, and
(c) would otherwise be liable to pay tax under section 2.1 or 2.2
is exempt from tax imposed by section 2.1 or 2.2 in respect of the lease of that conveyance.
Historical Note(s): RS1960-361-5; 1962-57-4; 1966-43-2; 1973-82-2; 1974-84-1; 1978-7-3,4; 1979-31-3; 1980-52-2, effective midnight March 11, 1980, see transitional provisions, 1980-52-7,8; 1981-8-3, effective March 10, 1981, see transitional provisions, 1981-8-6,7; 1981-29-5, proclaimed effective July 24, 1981; 1982-39-4, effective April 6, 1982, see transitional provision, 1982-39-13; 1983-6-31(a), effective October 15, 1983 (B.C. Reg. 384/83); 1983-6-31(b), effective April 1, 1983 (B.C. Reg. 384/83); 1983-20-51, effective December 1, 1983 (B.C. Reg. 453/83); 1983-27-4, effective July 8, 1983; 1985-32-3(a) to (c), effective March 15, 1985; 1985-32-3(e), part effective March 15, 1985, remainder effective April 1, 1985; 1985-32-3(d); 1985-76-68, effective December 31, 1985 (B.C. Reg. 413/85); 1987-17-6, effective March 20, 1987; 1987-18-16; 1987-60-45, part effective April 1, 1983, remainder effective March 15, 1985; 1988-25-3; 1988-45-29; 1989-13-6; 1989-79-8; 1990-14-2 to 4; 1990-27-12; 1990-53-12; 1992-22-9; 1993-14-14; 1993-69-8; 1994-16-20.
5. (1) Every person who sells tangible personal property at a retail sale, or who leases, as lessor, tangible personal property, in the Province or maintains a place of business or has a representative in the Province shall be deemed to be an agent for the minister, and as such shall levy and collect the tax imposed by this Act on the purchaser, user or lessee.
(2) The commissioner may, in writing, exempt from the requirements of subsection (1), a vendor who sells tangible personal property at a retail sale in the Province on a passenger carrying commercial vessel which makes scheduled sailings from a port inside the Province to a port outside the Province, or from a port outside the Province to a port inside the Province.
Historical Note(s): RS1960-361-6; 1981-29-6, proclaimed effective July 24, 1981; 1987-18-17; 1989-13-7.
5.1 For the purposes of section 4 (1) (z.94), the lessor must collect the tax under section 2.1 or 2.2 unless the lessee gives him a copy of documentation evidencing
(a) the original purchase by the lessee, and
(b) that the tax applicable under section 2 on the original purchase was paid by the lessee,
and the lessor must retain the copy of the documentation until authorized by the commissioner to dispose of it.
Historical Note(s): 1987-17-7, effective March 20, 1987.
6. Every person who collects any tax imposed under this Act shall be deemed to act subject to Part 7 of the Financial Administration Act; but, notwithstanding any other Act, no person acting under this section is thus made ineligible as a member of the Legislative Assembly of the Province.
Historical Note(s): RS1960-361-7; 1981-15-159, proclaimed effective November 26, 1981.
7. (1) Subject to subsections (2) and (3) and sections 2 (3.1) and (4) to (4.014) and 2.3, tax imposed under this Act in relation to a purchase price, whether the purchase price is payable in cash, on terms, by instalments or otherwise, shall be collected at the time of sale on the whole amount of the purchase price.
(2) A collector of tax imposed under section 2.01 or 2.011, whether the purchase price is payable in cash, on terms, by instalments or otherwise, shall use the collector's best efforts to collect the tax, and the tax collected shall be remitted to the commissioner by July 15, 1993 if it is collected before July 1, 1993 and by the 15th day of the month following the month in which the tax was collected if it is collected on or after July 1, 1993.
(3) A tax imposed under section 2.012, 2.013, 2.02, 2.03 or 2.04, whether the purchase price is payable in cash, on terms, by instalments or otherwise, shall be collected at the time the purchase price is paid or payable, whichever is earlier.
(4) In the case of legal services referred to in section 2.013 (4) (b), unless the person required by this Act to collect tax under that section has reason to believe that an estimate made under subsection (5) of that section in relation to the legal services is not reasonable, the obligation of that person to collect and remit the tax shall be considered to be met if the person collects and remits the amount of tax payable in accordance with the estimate.
(5) Subject to sections 2.1 (2) and 2.2 (2), tax imposed under this Act in relation to a lease price shall be collected at the time each payment of the lease price is paid.
(6) A levy under section 2.4, whether the purchase price is payable in cash, on terms, by instalments or otherwise, shall be collected at the time of sale.
(7) Amounts to be collected under this Act shall, when collected, be remitted to the commissioner at the prescribed times and in the prescribed manner.
Historical Note(s): 1993-24-17; 1993-69-9.
8. The minister may make an allowance to vendors and lessors for their services in collecting and forwarding the tax to the Province as prescribed by the regulations made by the Lieutenant Governor in Council; but, notwithstanding any other Act, no person accepting an allowance under this section is thus made ineligible as a member of the Legislative Assembly of the Province.
Historical Note(s): RS1960-361-9; 1981-29-7, proclaimed effective July 24, 1981.
9. Every vendor and lessor shall make returns to the commissioner and shall keep records in the form and substance prescribed by the regulations made by the Lieutenant Governor in Council.
Historical Note(s): RS1960-361-10; 1981-29-8, proclaimed effective July 24, 1981; 1982-39-5.
9.1 [Repealed 1988-25-4.]
10. Every manufacturer, wholesaler, importer, jobber, agent, vendor and lessor shall keep a record of all purchases, sales and leases by them of tangible personal property, whether for consumption or use or for resale or lease.
Historical Note(s): RS1960-361-11; 1981-29-9, proclaimed effective July 24, 1981; 1982-39-6.
11. A person who has custody of or control over information or records under this Act shall not disclose the information or records to any other person except
(a) in the course of administering or enforcing this or another taxation Act,
(b) in court proceedings relating to this or another taxation Act,
(b.1) as provided in, or ordered under, section 37.1 (3), 37.2 (1), 63.2 (6) or 63.3 (1) of the Family Relations Act or section 8 (3) or 9 (1) of the Family Maintenance Enforcement Act,
(c) under an agreement that
(i) is between the government and another government,
(ii) relates to the administration or enforcement of taxation enactments, and
(iii) provides for the disclosure of information and records to and the exchange of similar information and records with that other government, or
(d) for the purpose of the compilation of statistical information by the government or the government of Canada.
Historical Note(s): 1985-73-22; 1988-3-80.
12. (1) When a person having sold or leased, as lessor, tangible personal property fails to make a return or remittance as required under this Act, or if his returns are not substantiated by his records, the commissioner may make an estimate of the amount of the tax collected by that person for which he has not accounted, and the estimated amount shall be deemed to be the tax collected by that person, and he shall pay that amount to Her Majesty, and the commissioner may give notice in writing either by mailing or by serving to the vendor or the lessor, his heirs, administrators, executors or assigns or to his custodian or trustee in bankruptcy, requiring that the estimated amount shall be paid over to the commissioner or otherwise accounted for within 15 days from the date the notice is mailed or served.
(1.1) In making an estimate under this section the commissioner shall not consider or include a period greater than 6 years before the date of the first notice of estimate.
(1.2) Notwithstanding subsection (1.1), in making an estimate under this section the commissioner may consider and include any period, where the estimate relates to a contravention, of this Act or the regulations, involving wilful default or fraud.
(2) Proof that notice under subsection (1) has been given constitutes evidence that the amount stated is due and owing, and the onus of proving otherwise is on the person who sold or leased, as lessor, the tangible personal property.
Historical Note(s): RS1960-361-13; 1981-29-10,11, proclaimed effective July 24, 1981; 1985-32-4, effective March 15, 1985; 1993-14-15.
13. (1) If a person
(a) disputes liability for the amount stated in a notice given under section 12 (1),
(b) disputes an assessment made under section 27 (2) or (2.1),
(c) disputes a penalty or interest imposed under section 25 or 27 (3),
(d) disputes a decision of the commissioner under section 2 (1.7), (3), (12) or (17), 2.03 (4), 2.04 (3) and (8), 3 (2.2), 39, 39.1 (3) or 39.2, or
(e) disputes a determination of the commissioner under section 18.1 (11).
he may personally or by his agent, within 90 days after the date on the notice of the liability, assessment, penalty or decision, serve notice of appeal on the minister.
(2) The notice of appeal shall be in writing and shall be addressed to the minister at Victoria.
(3) The notice shall set out clearly the reasons for the appeal and all facts relative to it.
(4) On receipt of the notice the minister shall consider the matter and affirm or amend the estimate, assessment, penalty or decision and promptly notify the appellant of his decision.
Historical Note(s): RS1960-361-14; 1980-52-3, effective April 10, 1978, see transitional provision, 1980-52-8; 1985-32-5, effective March 15, 1985; 1986-23-21, effective March 21, 1986; 1988-45-30; 1989-13-8; 1990-15-13; 1990-58-20; 1993-69-10; 1994-16-21; 1994-37-22.
14. (1) A decision of the minister under section 13 (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 shall 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 shall be served on the Crown in accordance with section 8 of the Crown Proceeding Act and the Crown shall be designated "Her Majesty the Queen in right of the Province of British Columbia".
(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 commissioner for reconsideration.
(6) An appeal lies from a decision of the court to the Court of Appeal with leave of a justice of the Court of Appeal.
Historical Note(s): 1987-18-18, effective July 1, 1987; 1989-40-194; 1994-16-22.
15. An estimate made by the commissioner under section 12 shall not be varied or disallowed because of any irregularity, informality, omission or error on the part of any person in the observation of any directory provision up to the date of the issuing of the notice of the estimate.
Historical Note(s): RS1960-361-16.
16. Neither the giving of a notice of appeal by a person nor delay in the hearing of the appeal shall in any way affect the due date, the interest or penalties or any liability for payment provided under this Act in respect of taxes due and payable or that have been collected on behalf of Her Majesty that are the subject matter of the appeal or delay the collection of the same; but in the event of the estimate of the commissioner being set aside or reduced on appeal, the minister shall refund the amount or excess amount of taxes which have been paid or collected on behalf of Her Majesty, and any additional interest or penalty imposed and paid.
Historical Note(s): RS1960-361-17.
17. (1) The purchaser, user or lessee is and remains liable for the tax imposed under this Act until it has been collected and, in the event of failure on the part of the person selling or leasing tangible personal property to collect the tax, he shall immediately notify the commissioner, and the purchaser, user or lessee may be sued for it in any court of competent jurisdiction.
(2) Nothing in subsection (1) renders a lessee liable to pay a levy under section 2.4 on tangible personal property that is leased or that forms part of tangible personal property that is leased by the lessee.
Historical Note(s): RS1960-361-18; 1981-29-12, proclaimed effective July 24, 1981; 1993-14-16.
18. (1) Where a person collects an amount of tax under this Act
(a) he shall be deemed to hold it in trust for Her Majesty in right of the Province for the payment over of that amount to Her Majesty in the manner and at the time required under this Act and regulations, and
(b) the tax collected shall be deemed to be held separate from and form no part of the person's money, assets or estate, whether or not the amount of the tax has in fact been kept separate and apart from either the person's own money or the assets of the estate of the person who collected the amount of the tax under this Act.
(1.1) [Repealed 1985-32-6, effective April 6, 1982.]
(2) and (3) [Repealed 1990-11-109.]
(4) A person who, as assignee, liquidator, administrator, receiver, receiver manager, trustee, secured party as defined in section 18.1 or other similar person, other than a trustee appointed under the Bankruptcy Act (Canada), takes control or possession of the property of a person who has collected or is required to collect the tax under this Act shall, before distributing the property or the proceeds from the realization of it, obtain from the commissioner a certificate that the amount that constituted a lien registered under section 18.1 (2) has been paid or that security acceptable to the minister has been given.
(5) An assignee, liquidator, administrator, receiver, receiver manager, trustee, secured party as defined in section 18.1 or other similar person, other than a trustee appointed under the Bankruptcy Act (Canada), who distributes the property referred to in subsection (4) or the proceeds of the realization of it without having obtained the certificate required by that subsection is personally liable to Her Majesty for an amount equal to the amount of tax and related interest and penalty required to be paid to obtain the certificate.
Historical Note(s): 1978-7-5; 1980-10-119, proclaimed effective March 14, 1981; 1980-52-4, effective April 10, 1978; 1982-39-7, effective April 6, 1982; 1983-6-32, effective October 15, 1983 (B.C. Reg. 384/83); 1985-32-6, effective April 6, 1982; 1990-11-109.
18.1 (1) In this section
"associated corporation" means a corporation that
(a) is associated with another corporation within the meaning of section 256 of the Income Tax Act (Canada), or
(b) is determined under subsection (11) to be associated with another corporation for the purposes of this section;
"collateral" has the same meaning as in the Personal Property Security Act;
"inventory" has the same meaning as in the Personal Property Security Act;
"proceeds" has the same meaning as in the Personal Property Security Act;
"property", when referring to the property of an "associated corporation" or a "related individual", means property that is used in, or in conjunction with, the business in respect of which the taxes referred to in subsection (2) are required to be collected and remitted;
"purchase money security interest" has the same meaning as in the Personal Property Security Act;
"related individual" has the same meaning as in the Property Purchase Tax Act;
"secured party" has the same meaning as in the Personal Property Security Act;
"security interest" has the same meaning as in the Personal Property Security Act.
(2) Where a person is required to collect and remit taxes under this Act or the regulations and does not collect or remit the taxes, the commissioner may register a lien
(a) against the real property of
(ii) an associated corporation of the person, or
(iii) a related individual of the person
by registering a certificate of indebtedness in the prescribed form in the appropriate land title office in the same manner that a charge is registered under the Land Title Act, and
(b) against the personal property of
(ii) an associated corporation of the person, or
(iii) a related individual of the person
by designating the amount owing as a lien and entering the amount together with the date of the entry in an accounts receivable system maintained by the commissioner.
(3) On registration of a certificate of indebtedness against the real property of a person under subsection (2) (a), a lien for
(a) the amount of taxes remaining uncollected or unremitted, or both, that were required to be collected or were collected before registration, and
(b) any related interest and penalty on the taxes
is created on the real property against which the lien is registered.
(4) On registration of a lien against the personal property of a person under subsection (2) (b), a lien for
(a) the amount of taxes remaining uncollected or unremitted, or both, that were required to be collected or were collected before registration, and
(b) any related interest and penalty on the taxes
is created on the personal property in which the person has a legal or equitable interest, including any portion of the property that is subject to a prior lien or security interest.
(5) Subject to subsections (6) and (7), a lien registered under subsection (2) (b) against personal property
(a) is not limited to the equity that the person against whose personal property the lien is registered has in the personal property, and
(b) notwithstanding the provisions of any other enactments, has priority over a security interest or other lien, whether or not the security interest or other lien existed before the lien was registered under subsection (2) (b).
(6) A lien registered under subsection (2) (b) against personal property does not have priority over
(a) a security interest that secures unpaid wages under section 15 (2) of the Employment Standards Act, regardless of when that security interest arises, or
(b) a purchase money security interest in collateral other than collateral that at the time the purchase money security interest attaches is inventory or its proceeds.
(a) one or more liens are registered under subsection (2) (b) against the personal property of a person, and
(b) the property referred to in paragraph (a) is subject to
(i) a security interest perfected under the Personal Property Security Act before the registration of the first lien under subsection (2) (b), or
(ii) another lien created before the registration of the first lien under subsection (2) (b),
the total amount secured by all the liens registered under subsection (2) (b) is limited in amount, with respect to all the prior security interests or other liens referred to in paragraph (b) of this subsection, to the amount of taxes remaining uncollected or unremitted, or both, that were required to be collected or were collected by the person for the 6 calendar months prior to the date of the most recent registration of a lien under subsection (2) (b).
(8) Where a lien results from an estimate under section 12 or 27 and the estimate is for an amount that is different from the actual amount of the lien as established under subsections (3) and (4), the commissioner may correct the amount by registering a new lien in the revised amount and discharging the original lien, but for the purposes of subsection (7) the new registration shall be deemed to be registered at the same time as the registration it revises.
(9) Notwithstanding section 11, the commissioner shall,
(a) on the oral or written request of a person, disclose in writing whether a lien is registered against the personal or real property of a named person, or
(b) on the written request of a person accompanied by the written consent of a named person, disclose in writing whether a lien is registered against the personal or real property of the named person and, if a lien is registered, the amount of the lien and the date of its registration.
(10) Where the commissioner believes that one corporation is associated with another corporation within the meaning of section 256 of the Income Tax Act (Canada), the commissioner may request one or both of the corporations to provide to the commissioner the records and information required by the commissioner to confirm or rebut that belief.
(11) The commissioner may determine that the corporations are associated corporations for the purposes of this section where
(a) a corporation that has been requested to provide records or information to the commissioner under subsection (10) fails or refuses to comply with that request within a period of time considered by the commissioner to be reasonable in the circumstances, or
(b) the records or information provided to the commissioner under this section confirm the commissioner's belief that the corporations are associated.
(12) Immediately after a corporation is determined under this section to be associated with a person referred to in subsection (2) (a) (i) and (b) (i), the commissioner
(a) must so notify the corporation in writing, and
(b) may register a lien under this section against the real and personal property of the corporation.
(13) The commissioner may seize personal property against which a lien is registered under subsection (12) at any time after the registration of the lien but must not take any action to realize on those assets until the later of
(a) the date that is 90 days after the date on which the notice required under subsection (12) (a) was sent to the corporation, and
(b) if a notice of appeal is served on the minister in respect of the determination within the time provided by section 13 (1), the date on which the minister upholds the determination under that appeal.
(14) If, at any time, the commissioner becomes convinced that the corporations were not associated within the meaning of the section 256 of the Income Tax Act (Canada) at the time that the lien was registered under subsection (12) (b) or the minister or a court of competent jurisdiction upholds the corporation's appeal against the commissioner's determination on the basis that the corporations were not associated at the time that the lien was registered, the commissioner shall,
(a) if the commissioner has not realized on any of the assets against which the lien was registered, promptly release the lien, and
(b) if the commissioner has realized on some or all of the assets against which the lien was registered, promptly release the lien against the remaining assets and pay the proceeds realized from the sale of the realized assets minus any costs or expenses incurred in the sale
(i) to the corporation, or
(ii) where the commissioner considers it appropriate to do so, into the Supreme Court under Rule 48 of the Rules of Court.
(15) The release of the lien under subsection (14) (a) or the release of the lien and payment of the applicable net sale proceeds under subsection (14) (b) shall be deemed to be full satisfaction of all claims any person, including the corporation, might have arising out of or in any way connected with the determination made under subsection (11), the registration of the lien or the seizure or sale of any or all of the assets against which the lien was registered.
Historical Note(s): 1990-11-110; 1992-68-15; 1994-37-23.
19. Before taking proceedings for the recovery of taxes that are due and payable under this Act or that have been collected on behalf of Her Majesty in right of the Province, the commissioner shall give notice to the taxpayer or collector of his intention to enforce payment, but failure to give the notice in a case does not affect the validity of proceedings taken for the recovery of taxes or money collected as taxes under this Act.
Historical Note(s): RS1960-361-20.
20. The amount of taxes that are due and payable under this Act or that have been collected on behalf of Her Majesty in right of the Province may be recovered by action in any court as for a debt due to Her Majesty in right of the Province, and the court may make an order as to the costs of the action in favour of or against Her Majesty.
Historical Note(s): RS1960-361-21.
21. Where default is made in the payment of a penalty or of taxes that are due and payable under this Act or that have been collected on behalf of Her Majesty in right of the Province, or for any part, the commissioner may issue his certificate stating the amount due, the amount remaining unpaid, including interest and penalties, and the name of the person by whom it is payable, and may file the certificate with a district registrar of the Supreme Court, or with the registrar of any County Court, and when filed the certificate shall be of the same force and effect, and all proceedings may be taken on it, as if it were a judgment of the court for the recovery of a debt of the amount stated in the certificate against the person named in it.
Historical Note(s): RS1960-361-22; 1987-18-19.
22. (1) In this section "taxpayer" includes a person who is deemed to be an agent for the minister under section 5.
(2) Where the commissioner has knowledge or suspects that a person is or is about to become indebted or liable to make a payment to a taxpayer, he may, by registered letter or by a letter served personally, demand that that person pay the money otherwise payable to the taxpayer in whole or in part to the commissioner on account of the taxpayer's liability under this Act.
(3) Without limiting the generality of subsection (2), where the commissioner has knowledge or suspects that a person may advance money to, or make a payment on behalf of, or make a payment in respect of a negotiable instrument issued by a taxpayer, the commissioner may, by registered letter or by a letter served personally, demand that that person pay to him on account of the taxpayer's liability under this Act the money that would otherwise be so advanced or paid.
(4) Where under this section the commissioner demands that a person pay to the commissioner, 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 commissioner out of each payment of the amount stipulated by the commissioner in the demand.
(5) Money or a beneficial interest in money in a savings institution
(a) on deposit to the credit of a taxpayer at the time a demand is served, or
(b) deposited to the credit of a taxpayer after a demand is served
is money for which the savings institution is indebted to the taxpayer within the meaning of this section, but money on deposit or deposited to the credit of a taxpayer as described in paragraph (a) or (b) does not include money on deposit or deposited to the credit of a taxpayer in his capacity as a trustee.
(6) Unless a demand under this section is earlier satisfied, it continues in effect as follows:
(a) until 3 years after the demand is served, if it is made in respect of an outstanding legal claim or insurance claim that, if resolved in the taxpayer's favour, will result in money becoming available to the taxpayer;
(b) until 90 days after the demand is served, in any other case.
(6.1) Notwithstanding subsection (6), where 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 mailed or served, in which case the demand ceases to have effect on the expiration of that period.
(7) A person who fails to comply with a demand under subsection (2) or (4) is liable to pay to Her Majesty in right of the Province an amount equal to the amount that he was required under subsection (2) or (4), as the case may be, to pay to the commissioner.
(8) A person who fails to comply with a demand under subsection (3) is liable to pay to Her Majesty in right of the Province an amount equal to the lesser of
(a) the aggregate of the money advanced or paid, and
(b) the amount that he was required under subsection (3) to pay to the commissioner.
(9) The receipt of the commissioner for money paid under this section is a good and sufficient discharge of the original liability to the extent of the payment.
(9.1) Money paid by any person to the commissioner in compliance with a demand under this section shall be deemed to have been paid by that person to the taxpayer.
(10) Where a person carries on business under a name or style other than his own name, the demand under subsection (2), (3) or (4) may be addressed to the name or style under which he carries on business and, in the case of personal service, shall be deemed to have been validly served if it was left with an adult person employed at the place of business of the addressee.
(11) Where persons carry on business in partnership, the demand under subsection (2), (3) or (4) may be addressed to the partnership name and, in the case of personal service, shall be deemed to have been validly served if it was served on one of the partners or left with an adult person employed at the place of business of the partnership.
Historical Note(s): 1983-6-33, effective October 15, 1983 (B.C. Reg. 384/83); 1985-73-23; 1994-37-24.
22.1 (1) In subsections (2), (2.1) and (2.2) "proceeding" means
(a) an action for the recovery of taxes under section 20,
(b) the filing of a certificate under section 21, and
(c) the making of a demand under section 22.
(2) A proceeding may be commenced at any time within 7 years after the date on which liability arose for payment of the taxes claimed in the proceeding, and taxes may be recovered in the proceeding notwithstanding that during any part of the 7 years before this section came into force, recovery of the taxes, under the law then in force, was statute barred.
(2.1) A proceeding that relates to a contravention of this Act or the regulations and that involves wilful default or fraud may be commenced at any time, notwithstanding subsection (2) and notwithstanding that at any time before this section came into force, recovery of the taxes under the law then in force was statute barred.
(2.2) Notwithstanding subsection (2), where the date of an estimate made under section 12 (1) or the date of an assessment made under section 27 is before March 15, 1985, a proceeding in respect of the estimate or assessment may be commenced at any time within 10 years after the date on which liability arose for payment of the taxes claimed in the proceeding.
(3) Where taxes, penalties or interest have been paid before this section came into force, but those taxes, penalties or interest, were, at the time they were paid, statute barred under the law then in force before this section came into force, no proceedings shall be taken against the Crown in respect of a right or claim for repayment of those taxes, penalties or interest.
Historical Note(s): 1981-8-4, effective March 10, l981, see transitional provisions, 1981-8-6,7; 1985-32-7, effective March 15, 1985.
23. The minister may apply to the Supreme Court for an injunction ordering a vendor or lessor to cease selling or leasing or offering to sell or lease tangible personal property, legal services, parking rights or taxable services until the vendor or lessor fulfills the vendor's or lessor's obligations under this Act and pays the costs of the application if, without a registration certificate in force under section 3 (1), the vendor sells or offers to sell or the lessor leases or offers to lease any of the following:
(a) tangible personal property that is taxable under section 2, 2.1, 2.2 or 2.5;
(b) tangible personal property that is subject to a levy under section 2.4;
(c) legal services in relation to which tax is payable under section 2.012 or 2.013;
(d) a parking right that is taxable under section 2.03;
(e) a taxable service in relation to which tax is payable under section 2.04.
Historical Note(s): 1993-69-11; 1993-3-35; 1993-24-18; 1993-69-12,13.
24. The powers conferred by this Act for the recovery of taxes or money collected as taxes, by action in court and by filing a certificate, may be exercised separately, or concurrently or cumulatively; and the liability of a person for the payment of tax under this Act or the liability to remit taxes collected is not affected in any way by the fact that a fine or penalty has been imposed on or paid by him in respect of a contravention of this Act.
Historical Note(s): RS1960-361-25.
25. (1) In addition to any other penalty the commissioner may,
(a) where he is satisfied that a person wilfully failed to remit tax collected as required by this Act or the regulations, assess against the person a penalty equal to 100% of the amount not remitted,
(b) where he is satisfied that a person evaded the payment of tax by wilfully making a false or deceptive statement or by wilful default or fraud, assess against the person a penalty equal to 25% of the amount evaded, or
(c) in any case, other than a case referred to in paragraph (a) or (b), where he is satisfied that a person failed to remit or pay any tax as required by this Act or the regulations, assess against the person a penalty equal to 10% of the amount not remitted or paid.
(1.1) The commissioner may, at any time,
(a) whether or not he has assessed a penalty under subsection (1), and
(b) in respect of any period during which tax under this Act or the regulations ought to have been remitted or paid,
assess on the amount of taxes not remitted or paid as required under this Act or the regulations, interest at a rate prescribed by the Lieutenant Governor in Council.
(2) The penalty and interest under this section form part of the lien provided for in section 18.
Historical Note(s): RS1960-361-26; 1970-44-20; 1977-76-35; 1985-32-8, effective July 1, 1985; 1989-13-9.
26. (1) Where the vendor or lessor has failed to collect or to remit tax in accordance with this Act, the commissioner may require him to deposit with the minister a bond by way of cash or other security satisfactory to the minister and the amount of the bond shall be determined by the commissioner, but shall not be greater than an amount equal to 6 times the sum or the estimated sum of tax that would normally be collected by the vendor or lessor each month under this Act.
(2) Where a vendor or lessor who has deposited a bond has failed to collect or to remit tax in accordance with this Act, the commissioner may, by giving written notice to the vendor or lessor either by registered mail or by service of the notice on the vendor or lessor, apply the bond in whole or in part to the amount which should have been collected, remitted or paid by the vendor or lessor as the amount due to Her Majesty in right of the Province as of the date of the notice.
Historical Note(s): RS1960-361-27; 1981-29-14, proclaimed effective July 24, 1981.
27. (1) [Repealed 1992-68-16.]
(2) Where it appears from an inspection, audit or examination of the books of account, records or documents that this Act or the regulations have not been complied with, the person making an inspection, audit or examination shall calculate the tax collected or due in a manner, and form and by a procedure the commissioner may deem adequate and expedient, and the commissioner shall assess the person for the amount of the tax calculated.
(2.1) Where it appears that an amount of tax should have been but was not paid by a purchaser, lessee or other person liable for tax under this Act, the commissioner may assess the purchaser, lessee or other person for the amount of tax payable.
(2.2) An assessment of a purchaser, lessee or other person purportedly made by the commissioner before March 15, 1985, shall be deemed to be valid and binding, subject to amendment or reassessment.
(2.3) In making an assessment under this section the commissioner shall not consider or include a period greater than 6 years before the date of the first notice of assessment.
(2.4) Notwithstanding subsection (2.3), in making an assessment under this section the commissioner may consider and include any period, where the assessment relates to a contravention, of this Act or the regulations, involving wilful default or fraud.
(3) Where it appears that an amount of tax should have been but was not collected, the commissioner shall impose a penalty, which forms part of the lien provided for in section 18, against the person who should have collected the tax, consisting of both
(a) the amount of tax that should have been collected, and
(b) interest at a rate prescribed by the Lieutenant Governor in Council.
(4) In imposing a penalty under subsection (3), the commissioner shall not consider a period greater than 3 years, all or part of which may be prior to April 1, 1975.
Historical Note(s): RS1960-361-28; 1978-7-6; 1980-52-5, effective April 10, 1978, see transitional provision, 1980-52-8; 1981-29-15, proclaimed effective July 24, 1981; 1985-32-9, effective March 15, 1985, [per transitional provision, section 41 of this Act, s. 41 rep., 1988-25-4]; 1985-75-27, effective March 15, 1985; 1989-13-10; 1992-68-16; 1993-24-19.
27.1 (1) The commissioner may appoint persons for the purposes of this section.
(2) Except as limited by subsection (4), a person appointed under subsection (1) may enter at any reasonable time the business premises occupied by a person, or the premises where the records of the person are kept, in order to
(a) determine whether this Act and the regulations are being or have been complied with,
(b) inspect, audit and examine books of account or other records, or
(c) ascertain the quantities of tangible personal property on hand or sold or leased by the person.
(3) A person occupying premises referred to in subsection (2) shall produce all books of account or other records as may be required by a person appointed under subsection (1) for the purposes of that subsection and shall answer all questions of that person regarding the matters referred to in that subsection.
(4) The power to enter a place under subsection (2) shall not be used to enter a dwelling occupied as a residence without the consent of the occupier except under the authority of a warrant under subsection (5).
(5) On being satisfied by evidence on oath that there are in a place records or other things for which there are reasonable grounds to believe that they are relevant to the matters referred to in subsection (2), a justice may issue a warrant authorizing a person named in the warrant to enter the place in accordance with the warrant in order to exercise the powers referred to in subsection (2) (a) to (c).
(6) No person shall
(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.
Historical Note(s): 1992-68-17.
28. (1) A justice who is satisfied by information on oath that there is reasonable ground for believing that a person has in his possession tangible personal property in respect of the consumption or use of which the tax payable has not been paid may at any time issue a warrant under his hand authorizing the commissioner or other official appointed by the commissioner named in it to enter and search any building, receptacle or place where the tangible personal property is believed to be situated and to make inquiries deemed necessary; and that person shall produce for inspection by the person named in the warrant any tangible personal property in his possession and answer any questions relating to it.
(2) A person who refuses to answer questions put to him under subsection (1) respecting the tangible personal property kept on hand on the premises, or who fails to produce for inspection any books of account, records or documents, or any parcel, box, carton, barrel, tank or other receptacle in his possession or under his control, that he is required to produce for inspection, commits an offence against this Act.
Historical Note(s): RS1960-361-29.
29. A person who sells or leases, as lessor, tangible personal property shall not advertise or hold out or state to the public or to any purchaser, user or lessee, directly or indirectly, that the tax or any part of it imposed under this Act will be assumed or absorbed by him or that it will not be considered as an element in the price to the purchaser, user or lessee or, if added, that it or any part of it will be refunded.
Historical Note(s): RS1960-361-30; 1981-29-16, proclaimed effective July 24, 1981.
30. [Repealed 1982-39-8.]
30.1 Section 5 of the Offence Act does not apply to
(b) the regulations.
Historical Note(s): 1982-39-9, proclaimed effective August 12, 1982.
31. If a corporation is guilty of an offence against this Act, and if an officer, director, employee or agent of the corporation directed, authorized, assented to, acquiesced or participated in the commission of the offence, that person is a party to and guilty of the offence.
Historical Note(s): RS1960-361-32.
32. [Repealed 1985-32-10, effective July 1, 1985.]
33. (1) [Repealed 1985-32-11, effective July 1, 1985.]
(1.1) Subject to subsections (2) and (2.1) a person who contravenes section 2, 2.01, 2.011, 2.012, 2.013, 2.02, 2.03, 2.04, 2.1, 2.2, 2.4, 2.5, 3, 5.1, 7, 9, 10, 17 (1), 27.1, 28 or 29, commits an offence and is liable
(a) on a first conviction, to a fine of not less than $200 and not more than $500, and
(b) on a subsequent conviction for the same or another provision of this Act, to a fine of not less than $500 and not more than $2,000.
(2) A person who fails to collect the tax imposed by this Act is liable on conviction to a fine equal to the amount of the tax that should have been collected, including any arrears, penalties and interest, as determined under subsection (3), and in addition is liable
(a) on a first conviction, to a fine of not less than $200 and not more than $1,000, and
(b) on a subsequent conviction for the same or another provision of this Act, to a fine of not less than $500 and not more than $2,000.
(2.1) A person who
(a) has made or participated in, assented to or acquiesced 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 him, has destroyed, altered, mutilated, secreted or otherwise disposed of a record or book of accounts of a vendor or lessor,
(c) has, in a record or book of accounts of a purchaser, lessee, vendor or lessor, made or assented to or acquiesced in the making of a false or deceptive entry or omitted or assented to or acquiesced in the omission to enter a material particular,
(c.1) has wilfully, in any manner, failed to comply with this Act or the regulations,
(d) has wilfully, in any manner, evaded or attempted to evade compliance with this Act or the regulations or remittance or payment of taxes required by this Act or the regulations, or
(e) has conspired with any person to do anything described in paragraphs (a) to (d)
commits an offence and is liable
(f) 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
(g) in addition, to a fine equal to the amount of any tax not collected, remitted or paid, including any penalties and interest, as determined under subsection (3).
(2.2) A person who contravenes section 11 commits an offence and is liable to a fine of not more than $2 000.
(3) The commissioner shall determine the amount of the tax referred to in subsection (2) or (2.1) (g) from information available to him, and shall issue a certificate as to the amount.
(4) In a prosecution under subsection (2) or (2.1), a certificate signed or purported to be signed by the commissioner stating the amount of tax, penalties and interest referred to in subsection (2.1) (g) is evidence of the amount of tax, penalties and interest referred to in subsection (2.1) (g).
(5) An information or complaint in respect of an offence under this Act may be for one or more than one offence, and no information, complaint, warrant, conviction or other proceeding in a prosecution under this Act is objectionable or insufficient by reason of the fact that it relates to 2 or more offences.
(6) Nothing in this section, or the enforcement of a penalty hereunder, shall suspend or affect any remedy for the recovery of any tax or amount payable under this Act.
(7) Fines collected under this Act shall be paid to the minister on behalf of Her Majesty in right of the Province.
Historical Note(s): RS1960-361-34; 1982-39-10; 1985-32-11, effective July 1, 1985; 1985-73-24; 1987-17-8(a), effective March 20, 1987; [amended 1987-17-8(b), not in force, amendment not included]; 1990-27-15; 1992-68-18; 1993-3-36; 1993-14-17; 1993-24-5,13,20; 1993-69-14.
34. In a prosecution for failure to pay the tax or to collect or forward the tax, the onus of proving that the tax was paid, collected or forwarded, as the case may be, to the commissioner is on the defendant.
Historical Note(s): RS1960-361-35.
35. An information or complaint in respect of an offence against this Act shall be laid or made within 6 years of the time when the matter of the information or complaint arose, except that in case of fraud no limitation applies.
Historical Note(s): RS1960-361-36.
36. (1) In a prosecution brought against a vendor or lessor who is required to register under this Act, his application form is evidence that the person charged is a vendor or lessor registered under this Act, and his return form is evidence that he collected tax.
(2) Where the vendor or lessor is described as a partnership on the application form, the application form is evidence that the persons named on it are partners registered as such under this Act, and the return form is evidence that the partnership firm collected the tax.
Historical Note(s): RS1960-361-37; 1981-29-17, proclaimed effective July 24, 1981.
36.1 Notwithstanding any other section in this Act, where the purchase price for tangible personal property, a service or a right that is taxable under this Act is, because of the equipment by or through which the purchase is made, to be paid by coin or other legal tender, the Lieutenant Governor in Council may by regulation specify the amount of tax payable on the purchase in an amount that is equal to or less than the amount that would otherwise be payable under this Act.
Historical Note(s): 1993-69-15.
37. (1) The Lieutenant Governor in Council may make regulations that are considered necessary or advisable for the purpose of carrying into effect this Act according to its intent and of supplying any deficiency in it, and for the purpose of relaxing the strictness of the law relative to the incidence or the collection of any of the taxes under it, in cases where, without relaxation, great public inconvenience or great hardship or injustice to persons could not be avoided.
(2) Without limiting the generality of subsection (1), the Lieutenant Governor in Council may make regulations doing one or more of the following:
(a) prescribing the forms and records to be used for this Act or the regulations;
(b) prescribing the form and manner of records to be kept by manufacturers and others under section 10;
(c) prescribing the method of collection and remittance of taxes under this Act and any other conditions or requirements affecting collection and remittance, and may prescribe different methods, conditions or requirements for different classes of persons;
(c.1) exempting one or more of the following classes of persons from all the taxes under sections 2, 2.01, 2.011, 2.012, 2.013, 2.02, 2.03, 2.04, 2.1 and 2.2, subject to such terms and conditions as the Lieutenant Governor in Council specifies:
(i) diplomatic agents of a diplomatic mission situated in Canada who are citizens of the country operating the diplomatic mission;
(ii) senior officials of United Nations' agencies situated in Canada who have been accorded diplomatic privileges by the Department of External Affairs of the government of Canada;
(iii) career consular officers of a consular post situated in British Columbia, or of a consular post situated elsewhere in Canada but accredited in British Columbia, who are citizens of the country operating the consular post;
(iv) administrative and support staff of consular posts situated in British Columbia who are citizens of the country operating the consular post;
(v) spouses of the persons referred to in subparagraphs (i), (ii), (iii) and (iv);
(vi) a corporation established under the University Foundations Act or the corporation established under the Trinity Western University Foundation Act;
(vii) the corporation established under Part 3.1 of the Hospital Act;
(viii) the corporation continued under section 2 of the British Columbia Health Research Foundation Act;
(ix) the corporation or the committee established under the First Peoples' Heritage, Language and Culture Act;
(d) determining the remuneration and conditions of it to be paid to vendors and lessors for collecting and forwarding taxes under this Act to the Province;
(e) defining any expression used but not defined in this Act;
(e.1) in relation to legal services,
(i) prescribing specified fees and charges in relation to legal services as excluded from the purchase price of the legal services,
(ii) prescribing specified disbursements in relation to legal services as disbursements to be included in the purchase price of the legal services,
(iii) prescribing legally related services as legal services,
(iv) prescribing matters that relate to British Columbia as matters in relation to which tax is to be paid under section 2.012 (3),
(v) prescribing restrictions, conditions or requirements in relation to estimates under section 2.013 (5),
(vi) prescribing exemptions from tax under section 2.01, 2.011, 2.012 or 2.013 in relation to specified legal services, subject to such terms and conditions as the Lieutenant Governor in Council specifies, and
(vii) prescribing exemptions from tax under section 2.01, 2.011, 2.012 or 2.013 in relation to legal services provided to one or more persons or classes of persons, subject to such terms and conditions as the Lieutenant Governor in Council specifies;
(e.2) in relation to a parking right,
(i) prescribing parking sites or classes of parking sites for the purposes of section 2.03 (2) (b), subject to the terms and conditions the Lieutenant Governor in Council specifies, and
(ii) prescribing one or more classes of persons for the purposes of section 2.03 (2) (c), subject to the terms and conditions the Lieutenant Governor in Council specifies;
(e.3) prescribing one or more geographic areas within the Province or prescribing the Province as a geographic area for the purposes of the definition of "parking site" in section 1 (1);
(e.4) in relation to a taxable service,
(i) prescribing tangible personal property for the purposes of paragraph (b) of the definition of "taxable service" in section 1 (1), subject to the terms and conditions the Lieutenant Governor in Council specifies,
(ii) prescribing taxable services or classes of taxable services in relation to which no tax is payable under section 2.04 (6) (a), subject to the terms and conditions the Lieutenant Governor in Council specifies, and
(iii) prescribing one or more classes of persons for the purposes of section 2.04 (6) (b), subject to the terms and conditions the Lieutenant Governor in Council specifies;
(f) exempting from tax under section 2.1 or 2.2 tangible personal property described in section 2 (4.01) or (4.02) that was sold to a lessor by a lessee under a sale and immediate lease-back arrangement and specifying the terms and conditions of exemption;
(f.1) prescribing vehicles that are included and vehicles that are not included within the meaning of passenger vehicle;
(g) for the purpose of section 2.4 (6),
(i) prescribing as hazardous products any substances that the Lieutenant Governor in Council considers to be hazardous, or potentially hazardous, to the environment, in comparison to other substances that the Lieutenant Governor in Council considers to be less hazardous, or less potentially hazardous, to the environment,
(ii) prescribing levies, as rates per tonne, for the hazardous products prescribed under subparagraph (i), and
(iii) prescribing methods and formulas to be used in converting a quantity of any of the hazardous products prescribed under subparagraph (i) into tonnes for purposes of calculating the levy prescribed under subparagraph (ii) for that hazardous product;
(h) exempting one or more classes of persons from the levy under section 2.4 (6) on hazardous products;
(i) exempting certain uses of hazardous products prescribed under paragraph (g) (i) from the levy under section 2.4 (6) on hazardous products;
(j) exempting any of the hazardous products prescribed under paragraph (g) (i) that are produced by prescribed methods or are by-products of prescribed processes from the levy under section 2.4 (6) on hazardous products;
(k) for the purpose of section 2.4 (2), prescribing form, manner, or both form and manner;
(l) in relation to a record
(i) that is in the possession of a lawyer and that is about to be inspected, audited or examined under this Act or about to be seized under a warrant in relation to an offence under this Act, and
(ii) for which the lawyer at that time makes a claim of solicitor client privilege for a named client of the lawyer in relation to the record,
establishing procedures for allowing the record to be retained or seized and to be held in a secure manner until the claim of solicitor client privilege is waived by the client or until the claim is determined, or the record is otherwise dealt with, on application to the Supreme Court in accordance with the regulations;
(l.1) establishing a right to apply to the Supreme Court to resolve a claim of solicitor client privilege regarding a record retained or seized under paragraph (l) and establishing how the court is to deal with such an application;
(m) specifying the amount of tax payable on a purchase referred to in section 36.1;
(n) exempting one or more classes of persons from the passenger vehicle rental tax under section 2.5, subject to the terms and conditions the Lieutenant Governor in Council specifies;
(o) prescribing formulas for calculating the proportion of the amount of tax otherwise payable under section 2 that is payable by motor dealers on motor vehicles purchased by them primarily for resale or lease and used in a prescribed manner before resale or lease.
(2.1) Without limiting the generality of subsections (1) and (2), the Lieutenant Governor in Council may
(a) for the purpose of calculating the tax payable under section 2 (4) or 2.1 (3) by persons using fleets of aircraft, vehicles, vessels, railway rolling stock or other conveyances in interprovincial or international trade for the commercial carriage of passengers or goods, prescribe formulas
(i) that are based on the use of those fleets in the Province, and
(ii) that those persons may choose to use instead of the formulas in sections 2 (4.01) to (4.05) and 2.1 (3), and
(b) provide that tax calculated in accordance with a formula prescribed for a fleet be paid in a different manner or at different times from those provided in section 2 (4.06), (4.07), (4.013) and (4.014), section 2.1 (3.01) and (5) and section 7.
(2.2) A regulation under subsection (2) (g) to (k) may provide differently for different hazardous products.
(2.3) A regulation under subsection (2) (g) shall not prescribe a levy for any hazardous product, other than an ozone depleting one, at a rate that exceeds a rate of $20 per tonne.
(3) [Repealed 1983-10-22, effective October 26, 1983 (B.C. Reg. 393/83).]
(4) The maximum and minimum penalties that may be prescribed or imposed for contravention of a regulation shall not exceed the maximum penalties or be less than the minimum penalties referred to in section 33 (1.1).
Historical Note(s): RS1960-361-38; 1981-29-18, proclaimed effective July 24, 1981; 1982-39-11, proclaimed effective August 12, 1982; 1983-10-22, effective October 26, 1983 (B.C. Reg. 393/83); note: see transitional provision, 1985-32-15; note: see transitional provision, 1987-17-10; 1987-18-20; 1987-50-17, effective December 11, 1987 (B.C. Reg. 437/87); 1989-49-4; 1989-79-10; 1989-82-18; 1990-7-16; 1990-16-24; 1990-27-16; 1993-24-6,14,21; 1993-55-26; 1993-69-16; 1993-3-37; 1994-37-25.
38. [Repealed 1990-27-17.]
39. (1) Where the commissioner is satisfied that taxes or a portion of them have been paid in error, other than an error that is a mistake of law, he shall refund from the consolidated revenue fund the amount of the overpayment to the person entitled.
(1.01) An application for a refund shall be signed by the person who paid the tax in error, and, where that person is a corporation, the application shall be signed by a director or authorized employee of that corporation.
(1.1) Where a purchaser returns tangible personal property to the vendor who sold it to him within 90 days after the property was delivered to the purchaser and in return for the property the vendor pays a refund or allows a credit to the purchaser, the vendor shall refund to the purchaser the amount of tax paid by him that is attributable to the amount of the refund or credit.
(1.2) [Repealed 1994-16-23].
(1.21) Notwithstanding section 39.2, any money received by a collector in respect of a sale or lease in relation to which tax is payable under this Act, up to the full amount of the tax owing, shall be deemed to be payment of the tax owing by the purchaser or lessee under this Act.
(1.3) to (1.5) [Repealed 1994-16-23.]
(1.6) to (1.8) [Enacted 1985-57-28, not in force.]
(1.9) Where a purchaser of a horse has sold the horse and repurchases it at a claiming race, the commissioner shall, on application and on receipt of evidence satisfactory to him that the purchaser qualifies under this subsection, refund out of the consolidated revenue fund to the purchaser the amount of tax paid at the time of claiming, not exceeding the amount of the tax paid on the most recent purchase of that horse preceding its repurchase by that purchaser.
(1.91) [Repealed 1989-13-11.]
(1.92) Where a person, as customer under a contract for the supply and installation of improvements to real property, has paid in error an amount in addition to the contract price for or on account of taxes in respect of the contract price,
(a) the amount that may be refunded to the person is limited, notwithstanding subsection (1) and section 39.1, to the difference between
(i) the amount paid in error by that person in respect of the contract price, and
(ii) the amount of tax payable but unpaid by the contractor as purchaser in respect of the tangible personal property supplied under the contract,
(b) the amount paid in error that is prevented from being refunded by paragraph (a) shall be deemed to have been paid by the person on behalf of the contractor in respect of the tangible personal property supplied under the contract, and
(c) no action or other proceeding shall be brought by or on behalf of the person to recover a refund of the amount referred to in paragraph (b).
(2) Notwithstanding section 13 of the Financial Administration Act,
(a) no refund of less than $1 shall be made, and
(b) no refund shall be made on a claim for a refund made more than 6 years after the date on which the tax was paid.
(2.1) Notwithstanding the Limitation Act, no action for a refund of tax paid in error, other than an error that is a mistake of law, shall be brought more than 6 years after the date on which the tax was paid.
(2.2) [Repealed 1992-7-30.]
(3) [Repealed 1981-15-160, proclaimed effective November 26, 1981.]
(4) On application by a purchaser or lessee of an aircraft, vehicle, vessel, railway rolling stock or other conveyance who
(a) has paid tax under section 2 (1) or 2.1 (1) on the conveyance, and
(b) satisfies the commissioner that from the date of purchase or the date of the lease, as the case may be, the conveyance was used
(i) in interprovincial or international trade for the commercial carriage of passengers or goods, and
(ii) if the conveyance is an aircraft, in flights originating or terminating in the Province or connecting 2 or more points in the Province,
the commissioner shall refund to that purchaser or lessee out of the consolidated revenue fund the difference between the tax paid by the purchaser or lessee on the conveyance and the tax calculated in accordance with section 2 (4.01), (4.03) or (4.04) or 2.1 (3), as the case may be.
(5) On application by a purchaser of a part of an aircraft, vehicle, vessel, railway rolling stock or other conveyance who
(a) has paid tax under section 2 (1) on the part, and
(b) satisfies the commissioner that, from the date of purchase, the part was not used other than in a conveyance used as described in subsection (4) (b),
the commissioner shall refund to the purchaser out of the consolidated revenue fund the difference between the tax paid by the purchaser on the part and the tax calculated in accordance with section 2 (4.02) or (4.05).
(6) On application by a purchaser who purchased tangible personal property in the Province for a business use and who paid tax under section 2 (1) on that purchase, the commissioner shall refund to the purchaser out of the consolidated revenue fund the tax paid on the purchase if
(a) the tangible personal property
(i) is shipped out of the Province for use out of the Province, or
(ii) in the case of promotional distribution material, is shipped out of the Province in bulk to a recipient for the recipient's own use or consumption out of the Province, and
(b) no use whatsoever was made of the tangible personal property while it was in the Province other than to store it in and to ship it out of the Province.
(7) On application by a purchaser who purchased tangible personal property in the Province and who paid tax under section 2 (1) on that purchase, the commissioner shall refund to the purchaser out of the consolidated revenue fund the tax paid on the purchase if
(a) the purchaser is a manufacturer of portable buildings within the meaning of the regulations,
(b) the tangible personal property was processed, fabricated or manufactured into, attached to or incorporated into a portable building within the meaning of the regulations, and
(c) the portable building referred to in paragraph (b) is shipped by the manufacturer for delivery and use outside the Province.
Historical Note(s): 1979-31-2; 1981-8-5, effective March 10, 1981, see transitional provisions, 1981-8-6,7; 1981-15-160, proclaimed effective November 26, 1981; 1982-39-12, effective April 6, 1982, see transitional provision, 1982-39-13; 1985-32-12(a), effective April 6, 1982; 1985-32-12(b), effective March 15, 1985; [amended 1985-57-28, not in force, amendment not included]; 1986-23-16, effective March 21, 1986; 1986-23-22, effective April 1, 1986; 1987-17-9, effective March 20, 1987; 1989-13-11; 1989-79-11; 1990-15-14; 1990-58-21,22; 1992-7-30; 1993-24-22; 1994-16-23.
39.1 (1) No person has a right of action or other remedy against Her Majesty for the recovery of money paid as tax by mistake of law except by way of subsection (2) and by appeal under sections 13 and 14.
(2) A person who has paid money as tax by mistake of law may apply to the commissioner 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 tangible personal property for the sole, personal consumption or use of that individual, or
(b) 6 months after the money was paid, in any other case.
(3) Where the commissioner is satisfied that a person who applies under subsection (2) has paid money as tax by mistake of law, the commissioner shall refund out of the consolidated revenue fund to the person the amount paid by mistake.
(4) [Repealed 1992-7-31.]
(5) This section applies also to money paid as tax by mistake of law before July 24, 1990.
Historical Note(s): 1990-58-23; 1992-7-31.
39.2 (1) The commissioner may, in accordance with the regulations, refund from the consolidated revenue fund to a collector who sells or leases tangible personal property a portion, determined in the prescribed manner, of the amount sent by the collector to the commissioner in respect of taxes payable on that transaction under this Act.
(2) The commissioner may provide a refund under subsection (1) if
(a) the collector, in accordance with this Act, remits the tax required under this Act to be levied and collected for the transaction referred to in subsection (1),
(b) the purchaser or lessee subsequently fails to pay to the collector the full amount of the consideration and tax payable on that transaction, and
(c) the collector writes off as unrealizable or uncollectable the amount owing by the purchaser or lessee.
(3) 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 shall 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.
Historical Note(s): 1994-16-24.
40. [Repealed 1985-32-13.]
41. [Repealed 1988-25-4.]
42. (1) In sections 43 to 45
"the amendment Act" means the Social Service Tax Amendment Act (No. 2), 1989;
"retroactive period" means the period commencing on May 5, 1983 and ending on the day that the amendment Act was enacted.
(2) For purposes of sections 43 (1), 44 (6) and 46, a person paid money "as taxes" where the person paid the money as though there were a legal liability to pay the money, notwithstanding that there was no such liability to pay it.
Historical Note(s): 1989-79-12.
[Editorial Note(s): amendment Act enacted July 20, 1989.]
43. (1) A person who after May 4, 1983 paid to Her Majesty money as taxes under this Act or under the Social Services Tax Act, R.S.B.C. 1960, c. 361, in respect of the use in the Province of tangible personal property that was brought or sent into, or received, or delivered in, the Province on a temporary basis, is not entitled to a refund of the money that was so paid notwithstanding section 39 or any judgment, order, direction or declaration of a court in Canada to the contrary and no action or other proceeding shall be brought to recover any such refund.
(2) Money referred to in subsection (1) is conclusively deemed by this subsection to be the property of Her Majesty.
Historical Note(s): 1989-79-12.
44. (1) The amendment Act, other than
(a) that part of section 3 of the amendment Act that enacts section 2 (4.08), (4.09) and (4.013) (e) of this Act, and
(b) section 11 of the amendment Act,
shall be deemed to have come into force on May 5, 1983 and is, subject to the other provisions of this section, retroactive to the extent necessary to give it effect on and after that day.
(2) For the tax that is payable under this Act for the retroactive period, the rates that were in force under section 2 (1) at appropriate times during the retroactive period are the rates that apply to the tax that is payable under this Act in respect of the retroactive period.
(3) The liability of a person listed in the schedule to pay tax under this Act as a result of the enactment of the amendment Act and the coming into force of the amendment Act, arises on the day that the amendment Act was enacted, and not on the day that the liability would have otherwise arisen as a result of subsection (1) of this section, and the provisions of this Act respecting assessment, penalty and the payment of interest apply as though that liability arose on the day the amendment Act was enacted.
(4) Subsection (3) applies only in respect of tangible personal property referred to in section 2 (4.01), (4.02), (4.03) and (4.05) and 2.1 (3) (a) to (c).
(5) A person, other than a person listed in the schedule, who is liable to pay tax during the retroactive period as a result of the enactment of the amendment Act, is credited in respect of that liability with the money referred to in section 43 that the person paid.
(6) Where, in respect of a person referred to in subsection (5), tax that is owing for the retroactive period is greater than the amount of money that is credited under subsection (5), interest under section 25 is payable by that person on the difference from the time that the liability for payment of the tax arose during the retroactive period up to the time that the tax was paid, but no penalty referred to in section 25 in respect of that liability is payable.
Historical Note(s): 1989-79-12; 1990-15-15.
[Editorial Note(s): amendment Act enacted July 20, 1989.]
45. (1) In respect of the tax that was payable during the retroactive period, section 2.3 of this Act as enacted by section 5 of the Social Service Tax Amendment Act, 1989, S.B.C. 1989, c. 13, and amended by section 7 of the amendment Act, shall be deemed to have come into force on May 5, 1983 and is retroactive to the extent necessary to give it effect on and after that date.
(2) Regulations the Lieutenant in Governor in Council considers necessary as a result of the enactment of sections 2 (4.02), (4.09), (4.013), 2.3 (1) and 37 (2) (f) and (2.1) of this Act by the amendment Act may be made retroactive to commence any time after May 4, 1983 and, where so made, shall be deemed to have come into force on that date or on a subsequent date specified by the Lieutenant Governor in Council.
(3) The Lieutenant Governor in Council may, by regulation, amend the schedule by adding the names of persons to it and the amendments may be made retroactive to commence any time after May 4, 1983.
Historical Note(s): 1989-79-12.
46. Where, during the retroactive period,
(a) money referred to in section 43 (1) was paid as taxes, and
(b) the amount that was paid was calculated and determined as though formulas relating to the use of fleets contemplated by section 37 (2.1) were in effect,
the liability to pay tax during the retroactive period shall be determined as though these formulas were in effect.
Historical Note(s): 1989-79-12.
2. Canadian Pacific Air Lines, Limited
3. Pacific Western Airlines Limited
4. Canadian National Railway Company
5. The Canadian Wheat Board
6. Ocelot Industries Limited
7. Esso Resources Canada Limited
8. San Juan Airlines Inc.
9. Sea-Land Services Inc.
Historical Note(s): 1989-79-12.
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