Social Service Tax Act

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	17	Repealed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	27	Repealed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

Definitions and interpretation

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

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

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

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

"assessment" includes reassessment;

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

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

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

"conveyance" does not include a vehicle;

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

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

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

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

"fair market value" means

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

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

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

"fixture" means machinery, equipment or apparatus that is

(a) a fixture at common law, and

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

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

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

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

(b) the leasing of furnishings if

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

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

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

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

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

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

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

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

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

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

(ii) is not otherwise included in this definition;

"legal services" means

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

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

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

"lessee" means a person who leases tangible personal property

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

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

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

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

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

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

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

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

but does not include a prescribed type of publication;

"manufactured home" means

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

but does not include a prescribed type of publication;

"person" includes the government and a municipality;

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

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

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

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

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

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

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

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

"purchase price" means the following:

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

(i) any charges for

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

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

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

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

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

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

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

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

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

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

(b) in relation to legal services, means

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

(ii) the prescribed disbursements

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

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

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

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

(i) sign-up charges,

(ii) access charges,

(iii) airtime charges,

(iv) usage charges,

(v) service charges, and

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

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

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

(I) the telecommunication originates in British Columbia;

(II) the telecommunication is received in British Columbia;

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

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

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

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

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

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

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

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

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

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

"purchaser" means

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

"sale" includes

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

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

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

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

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

but does not include

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

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

"sale in bulk" means

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

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

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

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

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

(a) [Repealed 2006-2-21.]

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

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

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

(c) custom software, being

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

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

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

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

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

"tangible personal property" means

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

(b) software,

(c) electricity,

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

(e) heat;

"tax" includes

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

(b) in the definition of "collector" and in sections 80, 81, 82 (1), 84, 91, 92, 93 (1), (1.1), (2) and (4), 94, 95, 96 (7), 99, 101 to 109, 111 to 117, 120, 123, 124, 125 and 128 to 138, except 137 (2), but not in any other provision of this Act, a levy under Division 9 of Part 2 and all penalties and interest that are or may be added to a levy under this Act;

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

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

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

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

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

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

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

(b) a dedicated telecommunication service;

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

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

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

"use" includes

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

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

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

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

(e) in the definition of "user" for the purposes of sections 9 (1) and 11 (1) (b), the employment or utilization of tangible personal property by its owner, an employee of that owner or an independent contractor retained by that owner, in the course of carrying out work or performing services for another person,

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

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

except that use does not include

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

(g) the exercising of a right or power over or the storing, keeping or retaining of tangible personal property, other than reusable containers referred to in section 8, that was brought into British Columbia for the sole purpose of being processed, fabricated or manufactured into, or attached to or incorporated into, other tangible personal property that is to be transported outside British Columbia for use solely outside British Columbia,

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(a) legal services;

(b) parking rights;

(c) taxable services;

(d) telecommunication services.

Tax = (purchase price x rate) ÷ 3

where
purchase price	=	the purchase price of the property;
rate	=	the rate in section 6 on the entry date of the property.

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

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

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

Amount = (purchase price x rate) – other sales tax

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

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

Calculation of tax if property is conveyance used interjurisdictionally

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

(a) an aircraft used

(i) interprovincially or internationally for commercial purposes, and

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

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

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

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

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

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

Tax = purchase price x rate x (BC usage ÷ total usage)

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

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

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

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

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

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

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

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

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

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

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

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

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

(8) If

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

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

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

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

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

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

(b) for tangible personal property that is described in section 13 (1) (a) or is a prescribed part described in section 13 (1) (b), in installments that are calculated in the prescribed manner and are payable at prescribed intervals over a period of 3 years;

(c) for tangible personal property that is a part described in section 13 (1) (b), other than a prescribed part, within 23 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, British Columbia;

(d) for tangible personal property described in section 13 (1) (c) or (d), within 23 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, British Columbia;

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

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

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

15 (1) This section applies to a person

(a) who purchases in British Columbia or is deemed under section 9 (1) to be a purchaser of an aircraft, vessel, railway rolling stock or other conveyance, and

(b) who, from the date of purchase or the date on which the person is deemed to be a purchaser, uses the conveyance in interprovincial or international trade for the commercial carriage of passengers or goods.

(2) Despite any other provision of this Division, a person referred to in subsection (1) must pay, on the date of purchase in British Columbia or at the time specified in section 9 (1), tax calculated in accordance with section 13 (3) or (5).

Tax if property brought into British Columbia by non-residents

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

(a) owns real property in British Columbia, or

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

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

(a) primarily in British Columbia, and

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

(i) the non-resident;

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

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

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

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

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

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

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

Repealed

17 [Repealed 2004-9-7.]

Conversion to litres of propane

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

How tax is to be calculated

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

(a) calculated separately on every purchase, and

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

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

Effect of depreciation on purchase price valuation

19 (1) If prescribed tangible personal property, other than property acquired for resale, becomes subject to tax under section 9 (1), (1.1), (1.3), (2) or (3.2), 11 (3) or 31 (1), the purchase price of the property is deemed to be the greater of the following amounts:

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

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

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

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

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

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

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

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

Tax on leases in British Columbia

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

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

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

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

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

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

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

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

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

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

(i) March 31, 1993, and

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

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

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

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

Tax on motor vehicle leased outside British Columbia

20.1 (1) A lessee of a motor vehicle, other than a multijurisdictional vehicle, must, at the time of registering the vehicle for use, pay tax at the applicable rate under section 6, if the vehicle is leased for a period of more than 28 days from an out of Province lessor who is not a registered lessor under the Act, or who is a registered lessor but has not confirmed collection of the tax.

(2) For the purpose of subsection (1), the reference to "purchase price" in section 6 means the fair market value on the date the motor vehicle is registered.

(3) On termination or expiration of the lease agreement for a motor vehicle referred to in subsection (1), or removal of the motor vehicle from British Columbia for registration outside of British Columbia, the lessee may claim a refund of the difference between the tax paid at the time of registering the vehicle less the sum of all taxes that would have otherwise been payable under section 20 or 21.

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

Tax on property occasionally supplied with operator

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

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

(b) is referred to in section 9 (1.2)

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

Tax if leased property brought into British Columbia

21 (1) This section applies to the following:

(a) a person who

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

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

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

(c) a lessee who

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

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

(d) a lessee who

(i) leases in British Columbia an aircraft, and

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

(e) a lessee who

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

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

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

(a) the property is used

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

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

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

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

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

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

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

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

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

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

Tax = lease price x rate x (BC usage ÷ total usage)

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

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

(a) in the case of an aircraft used

(i) interprovincially or internationally for commercial purposes, and

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

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

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

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

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

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

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

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

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

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

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

Tax if recording exhibited

21.1 A person

(a) who, under section 76 (1) (l) (ii), acquired exempt from tax a recording of a motion picture, and

(b) who exhibits the motion picture in a movie theatre or other public venue

must, at the time the motion picture is exhibited, pay tax in an amount equal to the amount that would have been payable if the person had acquired the right or authority to exhibit the motion picture from a willing lessor acting in good faith in an arm's length transaction in the open market.

Tax if sale and lease-back of conveyance

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

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

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

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

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

to

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

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

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

Tax = lease price x rate x (lease ratio – purchase ratio)

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

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

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

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

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

Tax if tangible personal property becomes
a part of real property

22.1 (1) If, during the term of a lease of tangible personal property, the tangible personal property is used, on or after September 1, 2009, so that it ceases to be tangible personal property and becomes part of real property, then

(a) the tangible personal property is deemed to be sold at a retail sale immediately before the tangible personal property becomes part of real property,

(b) the person leasing the tangible personal property to the lessee is deemed to be the seller of the tangible personal property,

(c) the lessee is deemed to be the purchaser of the tangible personal property, and

(d) the purchase price of the tangible personal property is deemed to be the fair market value of the tangible personal property at the time of the sale.

(2) If a sale is deemed to have occurred under subsection (1) (a), the deemed purchaser may not claim an exemption under section 78 (1).

Tax must be calculated separately for each rental period

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

When tax must be paid

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

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

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

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

Tax if balance of lease price becomes due

25 (1) If a lessee breaches a lease that provides for

(a) the lease of tangible personal property, and

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

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

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

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

(a) 7% of the amount received, and

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

Additional tax on passenger vehicle rentals

26 (1) In addition to any tax payable under section 20 to 22, a lessee who leases a passenger vehicle must pay to the government, for the raising of revenue for the BC Transportation Financing Authority continued under the Transportation 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 if the passenger vehicle that is the subject matter of the lease is leased to the lessee for a period of

(a) 8 consecutive hours or less, or

(b) more than 28 consecutive days.

(3) The tax imposed under this section must be paid by the earlier of

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

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

Repealed

27 [Repealed 2004-9-7.]

Definitions

28 In this Division:

"acquisition date" means, in respect of a vehicle,

(a) the date on which the vehicle is purchased,

(b) in the case of a leased vehicle, the date on which the lessee first becomes entitled, under the lease, to have access to the vehicle, or

(c) in the case of a vehicle that is a gift, the date the recipient of the gift receives possession of the vehicle;

"acquisition year" means, in respect of a vehicle,

(a) the calendar year in which the vehicle is purchased,

(b) in the case of a leased vehicle, the calendar year in which the lessee first becomes entitled, under the lease, to have access to the vehicle, or

(c) in the case of a vehicle that is a gift, the date the recipient of the gift receives possession of the vehicle;

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

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

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

"licensing date" means,

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

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

"market value" means the fair market value;

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

"vehicle" does not include a trailer;

"vehicle taxable value" means, in respect of a vehicle

(a) that is purchased for market value, the purchase price of the vehicle,

(b) that is a leased vehicle, the greater of the purchase price of the vehicle, as described in the lease agreement, and the market value of the vehicle, or

(c) that is acquired for less than market value, the market value of the vehicle,

and includes any capital expenditure made to the vehicle within 30 days after the vehicle's acquisition date.

Tax if multijurisdictional vehicle licensed

29 (1) The following persons must pay tax to the government in accordance with this Division for a vehicle licence year:

(a) a person who, in the vehicle licence year, licenses a vehicle in British Columbia, whether as part of a fleet or not,

(i) for interjurisdictional commercial purposes, or

(ii) under a licence to which a prorating agreement under section 10 of the Commercial Transport Act applies;

(b) a person who

(i) licenses a vehicle outside British Columbia, whether as part of a fleet or not, and, in the vehicle licence year, brings or sends that vehicle into British Columbia for interjurisdictional commercial purposes, or

(ii) licenses a vehicle outside British Columbia, whether as part of a fleet or not, under a licence to which a prorating agreement under section 10 of the Commercial Transport Act applies, and, in the vehicle licence year, brings or sends that vehicle into British Columbia.

(2) The tax payable for a vehicle licence year under subsection (1) in respect of a vehicle must be calculated in accordance with the following formula:

Tax = taxable value x rate x travel ratio x travel months

where
taxable value	=	the vehicle taxable value;
rate	=	the tax rate established by subsection (3);
travel ratio	=	the travel ratio for the vehicle determined under subsection (4) or (5);
travel months	=	the number of whole or partial calendar months left in the vehicle licence year at the time that the vehicle is licensed divided by 12.

(3) In each calendar year in which tax is payable under subsection (1), the tax rate in respect of the vehicle is the rate shown opposite the applicable calendar year as follows:

Calendar Year	Tax Rate
acquisition year	3.294%
1st calendar year after the acquisition year	2.646%
2nd calendar year after the acquisition year	2.177%
3rd calendar year after the acquisition year	1.838%
4th calendar year after the acquisition year	1.597%
5th calendar year after the acquisition year	1.577%
6th calendar year after the acquisition year	1.509%
7th calendar year after the acquisition year	1.486%
8th calendar year after the acquisition year	1.497%
9th and subsequent calendar years after the acquisition year	1.533%

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

When tax must be paid

30 (1) The tax payable for a vehicle licence year under section 29 (1) in respect of a vehicle must be paid as follows:

(a) if the vehicle is licensed in British Columbia for interjurisdictional commercial purposes, the tax must be paid at the time that the vehicle is licensed for that vehicle licence year;

(b) in any other case, unless paid earlier under subsection (2), the tax must be paid at the time that the vehicle first enters British Columbia for interjurisdictional commercial purposes in that vehicle licence year.

(2) If the vehicle in respect of which tax is payable under this Division is licensed in a prescribed jurisdiction outside British Columbia for interjurisdictional commercial purposes, the tax may be paid at the time that the vehicle is licensed in that jurisdiction for that vehicle licence year.

Tax if vehicle ceases to be multijurisdictional

31 (1) If a vehicle in respect of which tax has been paid under one or more of sections 29, 30 and 34 is subsequently licensed for use solely within British Columbia, the owner must pay to the government, at the time of that licensing, a tax at the rate of 7% on the depreciated value of the vehicle as determined under section 19.

(2) On application and on receipt of evidence satisfactory to the commissioner, the commissioner must provide to the person a credit against the tax payable under subsection (1).

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

Tax if fleet licensing changed

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

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

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

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

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

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

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

Credit or refund if tax previously paid

33 (1) On application and on receipt of evidence satisfactory to the commissioner, the commissioner must provide a credit to a person who licenses a vehicle in British Columbia for interjurisdictional commercial purposes if

(a) the vehicle is so licensed within 5 years after its acquisition date,

(b) the vehicle was purchased after or was bought or sent into British Columbia after January 1, 1996, and

(c) the person had previously paid tax on the purchase price of the vehicle under

(i) section 5 (1), or

(ii) section 11 (3) as that tax was calculated under section 11 (4).

(2) The credit to which a person is entitled under subsection (1)

(a) must be calculated in accordance with the regulations,

(b) must be applied against any tax payable by the person in respect of the vehicle under this Division until the full amount of the credit has been applied in that manner, and

(c) must not be provided to the person in any other manner.

(3) to (5) [Repealed 2002-48-69.]

Refund or credit for trade-in vehicles

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

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

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

Refund for replacement vehicles

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

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

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

(b) the replacement vehicle is used only

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

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

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

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

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

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

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

(b) the licence year of the multijurisdictional vehicle.

Refund for short term rental vehicles

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

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

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

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

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

Liability of other persons

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

How tax is to be calculated

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

Tax if contract for property conversion related to purchase

36 (1) A purchaser who

(a) acquires tangible personal property

(i) from another person, or

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

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

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

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

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

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

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

Tax if contract for modification of purchased property

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

(a) that is

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Tax exempt property

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

(2) If a person referred to in section 9 (2) uses or permits tangible personal property prescribed under section 73 (1) (b) or (c) or referred to in section 73 (1) (d) to be used for a use other than that which permitted subsection (1) to apply, the person must pay to the government, at the time the property is so used, tax at the rate then in effect under this Division on the amounts on which tax would have been payable under this Division but for subsection (1).

Application of other provisions of Act

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

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

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

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

Tax on the provision of taxable service in British Columbia

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

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

Tax if service provided to British Columbia resident

41 (1) This section applies to a person who

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

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

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

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

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

(i) by the person,

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

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

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

(2) The person must

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

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

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

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

Exceptions from tax

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

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

(a) a prescribed taxable service, or

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

Repealed

43 [Repealed 2007-31-39.]

How tax is to be calculated

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

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

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

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

Application of other provisions of Act

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

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

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

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

Tax if legal services provided in British Columbia

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

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

(a) real property situated in British Columbia;

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

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

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

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

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

Tax if legal services provided to British Columbia resident

47 (1) A person who

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Exception for legal aid services

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

When tax must be paid

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

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

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

Liability of other persons

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

General matters

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

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

Application of other provisions of Act

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

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

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

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

Tax on provision of telecommunication services

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

Tax on provision of dedicated telecommunication services

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

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

Tax = purchase price x rate x (BC distance ÷ total distance)

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