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This Act is current to November 1, 2017
See the Tables of Legislative Changes for this Act’s legislative history, including any changes not in force.

Income Tax Act

[RSBC 1996] CHAPTER 215

Part 2 — Administration and Enforcement

Application of federal provisions — administration, interest, garnishment and proceedings to collect

47  (1) Sections 220 (2) to (7), 221.1, 224, 225.1 and 225.2 of the federal Act apply for the purposes of this Act.

(2) Subject to section 69, the Provincial minister must administer and enforce this Act.

(3) Despite subsection (1), the time periods set out in sections 4.721 (5), 25.1 (7), 85 (2), 103 (2), 110 (2), 114 (2), 128 (2) and 138 (2) of this Act must not be extended.

Power to make regulations

48  (1) The Lieutenant Governor in Council may make regulations referred to in section 41 of the Interpretation Act.

(2) Without limiting subsection (1), the Lieutenant Governor in Council may make regulations that provide for

(a) anything that, by this Act, is to be prescribed, determined or regulated by regulation, and

(b) the circumstances in which and extent to which, in any case of doubt, the federal regulations apply.

(3) Except to the extent that they are inconsistent with any regulations made under subsection (1) or (2) or are expressed by any regulation made under subsection (1) or (2) to be inapplicable, the federal regulations made under section 221 (1) of the federal Act apply, with the necessary changes and so far as applicable, for the purposes of this Act with respect to all matters enumerated in that subsection.

(4) No regulation made under this Act or under the federal Act if it is applicable, with the necessary changes, has effect for the purposes of this Act until it has been published in the British Columbia Gazette or the Canada Gazette, as the case may be, but when published, a regulation is effective, if it so provides, with reference to a period before it was published.

Application of federal provisions — debts to Her Majesty

49  (1) Section 222 of the federal Act applies for the purposes of this Act.

(2) In applying section 222 (5) (c) of the federal Act for the purposes of this Act, the reference in that section to "paragraph 227 (10) (a)" must be read as a reference to section 56 (2) (b) of this Act.

Application of federal provisions — certificates

50  (1) Section 223 (2) to (4) of the federal Act applies for the purposes of this Act.

(2) If a collection agreement is in effect, subsection (1) does not apply, but the federal minister may proceed under section 223 of the federal Act for the purpose of collecting any amount payable under this Act by a taxpayer.

Warrant

51  (1) The minister may issue a warrant, directed to the sheriff of any county or district in which any property of the taxpayer is located, for the amount of the tax, interest and penalty, or any of them, owing by the taxpayer, together with interest from the date of the issue of the warrant and the costs, expenses and poundage of the sheriff.

(2) A warrant issued under subsection (1) has the same effect as a writ of execution issued out of the court.

Application of federal provisions — acquisition of debtor's property

52  Section 224.2 of the federal Act applies for the purposes of this Act.

Application of federal provisions — payment of money seized from tax debtor

53  Section 224.3 of the federal Act applies for the purposes of this Act.

Application of federal provisions — seizure of goods

54  Section 225 of the federal Act applies for the purposes of this Act.

Application of federal provisions — taxpayer leaving Canada or defaulting

55  Section 226 of the federal Act applies for the purposes of this Act.

Application of federal provisions — withholding taxes

56  (1) Sections 153 (1) to (3) and 227 (1) to (5.2), (8), (8.2) to (9), (9.2), (9.4), (9.5), (10.2), (11) to (13) and (15) of the federal Act apply for the purposes of this Act.

(2) The minister may assess

(a) any person for any amount that has been deducted or withheld by that person under this Act or a regulation or under a provision of the federal Act or of the federal regulations that applies for the purposes of this Act, and

(b) any person for any amount payable by that person under section 224 (4) or (4.1), 227 (8), (8.3) to (9), (9.2), (9.4) or (9.5), 227.1 or 235 of the federal Act, as they apply for the purposes of this Act.

(3) If the minister sends a notice of assessment to a person referred to in subsection (2), sections 29 and 34 to 46 are applicable.

Application of federal provisions — liability of directors

57  Section 227.1 of the federal Act applies for the purposes of this Act.

Books and records

58  (1) A person carrying on business in British Columbia and a person who is required under this Act to pay or collect taxes or other amounts must keep records and books of account, including an annual inventory kept in the manner specified by the minister, at the person's place of business or residence in Canada or at any other place that may be designated by the minister, in the form and including the information that will enable the taxes payable under this Act or the taxes or other amounts that should have been deducted, withheld or collected to be determined.

(2) Section 230 (2.1), (3), (4), (5), (6), (7) and (8) of the federal Act applies for the purposes of this Act.

Application of federal provisions — inspections, privilege, information returns and corporate execution

59  Sections 231 to 231.5, 231.7, 232, 233 (1) and 236 of the federal Act apply for the purposes of this Act.

Repealed

60  [Repealed 2015-8-34.]

Offence and penalty

61  (1) A person who fails to file a return as and when required by or under this Act or a regulation, or by or under a provision of the federal Act or of the federal regulations, as that provision applies for the purposes of this Act, or who fails to comply with any of sections 153 (1), 227 (5), 230 (3), (4) and (6), 231 to 231.5 and 232 of the federal Act, as they apply for the purposes of this Act, is guilty of an offence and, in addition to any penalty otherwise provided, is liable on summary conviction to

(a) a fine of at least $1 000 and not exceeding $25 000, or

(b) both the fine described in paragraph (a) and imprisonment for a term not exceeding 12 months.

(2) Section 238 (2) of the federal Act applies for the purposes of this Act.

(3) If a person is convicted under this section for failure to comply with a provision of this Act or a regulation or a provision of the federal Act or of the federal regulations that applies for the purposes of this Act, the person is not liable to a penalty under any of section 162 (1) to (3), (5), (7), (7.01), (7.02), (7.2), (7.3) or (11) or 227 (8), (9) or (9.5) of the federal Act, as those subsections apply for the purposes of this Act, for the same failure unless the person was assessed for that penalty or that penalty was demanded from the person before the information or complaint giving rise to the conviction was laid or made.

Application of federal provisions — further offences

62  Section 239 (1) and (1.1) of the federal Act applies for the purposes of this Act.

Powers of federal minister

63  If a collection agreement is entered into and proceedings under section 238 or 239 of the federal Act are taken against any person, the federal minister may take or refrain from any action against the person contemplated by section 61 or 62 of this Act, as the case may be.

Communication of information and related offences

64  (1) In this section:

"authorized person" means a person who is engaged or employed, or who was formerly engaged or employed, by or on behalf of the government of British Columbia to assist in carrying out the provisions of this Act;

"designated person" has the same meaning as in section 241 (10) of the federal Act;

"official" means any person

(a) who is employed in the service of, who occupies a position of responsibility in the service of, or who is engaged by or on behalf of the government of British Columbia, another province or Canada, or

(b) who was formerly so employed or formerly occupied such a position or was formerly so engaged,

and, for the purposes of subsections (2) and (3), the portion of subsection (5) before paragraph (a) and section 241 (5) of the federal Act as applied by this section, "official" includes a designated person;

"police officer" means a police officer as defined in section 462.48 (17) of the Criminal Code;

"taxpayer information" means information of any kind and in any form relating to one or more taxpayers

(a) that is obtained for the purposes of this Act

(i) by or on behalf of the Provincial minister or finance minister or both, or

(ii) if a collection agreement has been entered into, by or on behalf of one or more of the Provincial minister, the finance minister or the federal minister, or

(b) that is prepared from information referred to in paragraph (a),

but does not include information that does not directly or indirectly reveal the identity of the taxpayer to whom the information relates.

(2) Except as authorized by this section, an official must not

(a) knowingly provide, or knowingly allow to be provided, to any person any taxpayer information,

(b) knowingly allow any person to have access to any taxpayer information, or

(c) knowingly use any taxpayer information otherwise than in the course of the administration and enforcement of this Act or for a purpose for which it was provided under this section.

(3) Despite any other enactment or law, an official must not be required, in connection with any legal proceedings, to give or produce evidence relating to any taxpayer information.

(4) Subsections (2) and (3) do not apply in respect of legal proceedings referred to in section 241 (3) of the federal Act.

(5) Subject to subsection (6), an official may

(a) provide to any person taxpayer information that can reasonably be regarded as necessary for the purposes of the administration or enforcement of this Act, solely for those purposes,

(b) provide to any person taxpayer information that can reasonably be regarded as necessary for the purposes of determining

(i) any tax, interest, penalty or other amount that is or may become payable by the person under this Act,

(ii) any refund or tax credit to which the person is or may become entitled under this Act, or

(iii) any other amount that is relevant for the purposes of a determination under subparagraph (i) or (ii),

(c) provide taxpayer information

(i) to an official of the Department of Finance of the Government of Canada, solely for the purposes of the formulation or evaluation of fiscal policy,

(ii) to an official solely for the purposes of the initial implementation of a fiscal policy or for the purposes of the administration or enforcement of an Act of the Parliament of Canada that provides for the imposition and collection of a tax or duty,

(iii) to an official solely for the purposes of the administration or enforcement of an enactment of British Columbia or another province that provides for the imposition or collection of a tax or duty,

(iii.1) to an official of the ministry, solely for the purpose of monitoring the use of powers, the performance of duties and the exercise of discretion under this Act by the federal minister or the Commissioner of Customs and Revenue under a collection agreement,

(iii.2) to an official solely for the purposes of the administration or enforcement of Part 11.1 [Inspections, Audits and Assessments] of the Forest Act,

(iv) to an official of the ministry of the finance minister, solely for the purposes of the formulation or evaluation of fiscal policy, or

(v) to an official solely for the purposes of setting off against any sum of money that may be due or payable by the government of British Columbia a debt due to that government or to the government of another province or of Canada,

(d) provide taxpayer information, or allow the inspection of or access to taxpayer information, as the case may be, under, and solely for the purposes of,

(i) sections 44 (2) and 61 (1) of the Freedom of Information and Protection of Privacy Act, or

(ii) sections 15, 16 and 17 of the Auditor General Act,

(e) provide taxpayer information solely for the purposes of sections 17 to 19 of the Financial Administration Act,

(f) use taxpayer information to compile information in a form that does not directly or indirectly reveal the identity of the taxpayer to whom the information relates,

(g) use, or provide to any person, taxpayer information solely for a purpose relating to the supervision, evaluation or discipline of an authorized person by the government in respect of a period during which the authorized person was employed by, or engaged by or on behalf of, the government to assist in the administration or enforcement of this Act, to the extent that the information is relevant for the purpose,

(h) use taxpayer information relating to a taxpayer to provide information to the taxpayer,

(i) provide taxpayer information to an official or a designated person solely for the purpose of permitting the making of an adjustment to

(i) a payment made on the basis of a means, needs or income test, or

(ii) a payment under an enactment of British Columbia in respect of a child within the meaning of the enactment,

if the purpose of the adjustment is to take into account the amount determined under section 10 (3) (a) or 13.071 (2) to (4),

(i.1) provide taxpayer information to a police officer solely for the purpose of investigating whether an offence has been committed under the Criminal Code, or the laying of an information or the preferring of an indictment, if

(i) the taxpayer information can reasonably be regarded as being necessary for the purpose of ascertaining

(A) the circumstances in which an offence under the Criminal Code may have been committed, or

(B) the identity of the person who may have committed an offence,

with respect to an official, or with respect to any person related to that official,

(ii) the official was or is engaged in the administration or enforcement of this Act, and

(iii) the offence can reasonably be considered to be related to that administration or enforcement, and

(j) provide, or allow inspection of or access to, taxpayer information to or by any person otherwise legally entitled to it under an enactment of British Columbia solely for the purposes for which that person is entitled to the information.

(6) An official must not under subsection (5) (a) to (c) or (e) to (j) provide taxpayer information to, or allow inspection of or access to taxpayer information by, an official of

(a) a public body, as defined in the Freedom of Information and Protection of Privacy Act, other than the ministry or, under subsection (5) (c) (iv), the ministry of the finance minister,

(b) the government of Canada, or

(c) the government of another province,

except in accordance with an agreement entered into under section 65 or 69.

(7) Section 241 (3.1), (4.1) and (5) of the federal Act apply for the purposes of this Act.

(8) To the extent of any inconsistency or conflict with sections 32, 33, 33.1 and 33.2 of the Freedom of Information and Protection of Privacy Act, this section applies despite that Act.

(9) A person who

(a) contravenes subsection (2), or

(b) knowingly contravenes an order made under section 241 (4.1) of the federal Act as it applies for the purposes of this Act,

commits an offence.

(10) A person

(a) to whom taxpayer information has been provided for a particular purpose under subsection (5) (b), (d), (g) or (j), or

(b) who is an official to whom taxpayer information has been provided for a particular purpose under subsection (5) (a), (c), (e) or (i)

and who for any other purpose knowingly uses, provides to any person, allows the provision to any person of, or allows access to, that information commits an offence.

(11) A person who commits an offence under subsection (9) or (10) is liable to a fine not exceeding $5 000 or to imprisonment for a term not exceeding 12 months, or to both.

Information-sharing agreements

65  (1) In this section,

"information-sharing agreement" means an agreement or arrangement to exchange, by electronic data transmission, electronic data matching or any other means,

(a) information for a purpose referred to in section 64 (5), or

(b) information referred to in section 13.1 (5), 21 (15), 25.1 (9), 77.1, 95 (2) or 130;

"taxpayer information" has the same meaning as in section 64.

(2) With the prior approval of the Lieutenant Governor in Council, the Provincial minister, the finance minister or, if a collection agreement is in effect, the federal minister may enter into an information-sharing agreement with

(a) the government of Canada or an agency of that government,

(b) the government of a province or other jurisdiction in Canada or an agency of that government, or

(c) a public body as defined in the Freedom of Information and Protection of Privacy Act.

(3) Subject to subsection (3.1), taxpayer information obtained by the Provincial minister or finance minister under an information-sharing agreement or under an agreement entered into under section 69 may only be used or disclosed for the purpose for which it was obtained under the applicable agreement.

(3.1) Subsection (3) does not prevent

(a) any taxpayer information obtained by the Provincial minister or finance minister under an information-sharing agreement with the government of Canada or an agency of that government or under an agreement entered into under section 69 from being used or disclosed for the purpose of administering and enforcing an enactment administered by the Provincial minister or finance minister that provides for the imposition and collection of a tax or for the purpose of administering and enforcing the International Financial Business (Tax Refund) Act, the International Business Activity Act or Part 11.1 of the Forest Act, or

(b) any taxpayer information obtained by the Provincial minister or finance minister under an information-sharing agreement from being used or disclosed for the purpose of administering and enforcing an Act of the Parliament of Canada that provides for the imposition and collection of a tax or duty.

(4) The Lieutenant Governor in Council may prescribe terms and conditions that are to be included in information-sharing agreements entered into by the Provincial minister or finance minister.

Application of federal provisions — liability of officer or agent of corporation

66  Section 242 of the federal Act applies for the purposes of this Act.

Application of federal provisions — restriction on power of court

67  Section 243 of the federal Act applies for the purposes of this Act.

Procedure and evidence

68  (1) Section 244 (1) to (5), (7) to (11), (13) to (17) and (20) of the federal Act applies for the purposes of this Act.

(2) Judicial notice must be taken, without being specially pleaded or proved, of

(a) all orders or regulations made under this Act, and

(b) a collection agreement entered into under this Act or any agreement for the collection by Canada of the tax imposed under the income tax statute of an agreeing province.

(3) For the purposes of this Act, anything sent by first class mail or its equivalent is deemed to have been received by the person to whom it is sent on the day that it was mailed, except that a remittance of an amount deducted or withheld as required by this Act or a regulation or by a provision of the federal Act or of the federal regulations that applies for the purposes of this Act is deemed to have been remitted on the day it is received by the minister.

(4) A document purporting to be a collection agreement entered into under this Act or an agreement with Canada for the collection of tax imposed under the income tax statute of an agreeing province that is published in the Canada Gazette, or certified as such by or on behalf of the Provincial minister, or of the Provincial minister, the Provincial Treasurer or the Provincial Secretary Treasurer of the appropriate agreeing province, must be received as proof of its contents in the absence of evidence to the contrary.

(5) A certificate signed by the minister stating the amount of

(a) a taxpayer's income for the year as defined in section 4 (1), or

(b) a taxpayer's taxable income

is evidence of the amount of the taxpayer's income for the year or taxable income, as the case may be.

(6) If a collection agreement is entered into, any document or certificate that is executed or issued by the federal minister, the Commissioner of Customs and Revenue or an official of the Canada Customs and Revenue Agency on behalf or in place of the Provincial minister, the deputy Provincial minister or an officer of the ministry, is deemed for all purposes of this Act to be executed or issued by the Provincial minister, the deputy Provincial minister or an officer of the ministry.

Anti-avoidance rule

68.1  (1) In this section:

"avoidance transaction" means a transaction

(a) that, but for this section, would result, directly or indirectly, in a tax benefit, or

(b) that is part of a series of transactions, which series, but for this section, would result, directly or indirectly, in a tax benefit,

but does not include a transaction that may reasonably be considered

(c) to have been undertaken or arranged primarily for bona fide purposes other than for one or more of the following:

(i) to obtain a tax benefit;

(ii) to reduce, avoid or defer a tax, or another amount payable as or in respect of tax, under any other federal or provincial Act;

(iii) to increase a refund of tax, or of another amount in respect of tax, under any other federal or provincial Act, or

(d) to be a transaction that would not result, directly or indirectly, in

(i) a misuse of the provisions of this Act or the regulations, or

(ii) an abuse having regard to those provisions, other than this section, read as a whole;

"tax benefit" means

(a) a reduction, avoidance or deferral of tax, or of another amount, payable under this Act, or

(b) an increase in a refund of tax, or of another amount, under this Act;

"tax consequences" to a person means

(a) the amount of the person's

(i) income for the year, within the meaning of section 4 (1),

(ii) loss,

(iii) taxable income,

(iii.1) taxable income earned in Canada, within the meaning of section 4 (1),

(iv) income earned in the taxation year in British Columbia, within the meaning of section 4 (1),

(v) income earned in the taxation year outside British Columbia, within the meaning of section 4 (1), or

(vi) taxable income earned in the year in British Columbia, within the meaning of section 13.3, or

(b) any amount, other than an amount referred to in paragraph (a), that is payable or refundable to the person under this Act or that is relevant for the purposes of determining any other amount referred to in this section;

"transaction" includes an arrangement or event.

(2) If a transaction is an avoidance transaction, the tax consequences to a person must be determined in a manner that is reasonable in the circumstances in order to deny a tax benefit that, but for this section, would result, directly or indirectly, from that transaction or from a series of transactions that includes that transaction.

(3) Without limiting subsection (2),

(a) any amount deducted in computing an amount referred to in paragraph (a) or (b) of the definition of "tax consequences" in subsection (1) may be allowed or disallowed in whole or in part,

(b) any deduction referred to in paragraph (a) of this subsection or any other amount used in determining an amount payable or refundable under this Act may be allocated to any person,

(c) the nature of any payment or other amount may be recharacterized, and

(d) the tax effects that would otherwise result from the application of other provisions of this Act or the regulations may be ignored,

in determining the tax consequences to a person in a manner that is reasonable in the circumstances in order to deny a tax benefit that would, but for this section, result, directly or indirectly, from an avoidance transaction.

(4) If a notice of assessment, reassessment or additional assessment reflecting the application of subsection (2) to a transaction has been sent to a person, or a notice of determination under section 29 or 30 has been sent to the person, any other person is entitled, within 180 days after the date of the sending of that notice, to request in writing that the minister make an assessment, reassessment or additional assessment applying subsection (2) of this section or make a determination applying section 29 or 30 with respect to the transaction.

(5) On receipt of a request by a person under subsection (4), the minister must consider the request and make an assessment, reassessment or additional assessment, or a determination under section 29 or 30, with respect to the person, despite the expiry of any time limit under section 29 or 30, except that an assessment, reassessment or additional assessment or determination may be made under this subsection only to the extent that it may be reasonably regarded as relating to a transaction referred to in subsection (4) of this section.

(6) The tax consequences to any person, after the application of this section, must only be determined through

(a) a notice of assessment, reassessment or additional assessment under section 29 or 30, or

(b) a notice of determination under section 29 or 30.

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