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This Act is current to April 11, 2018
See the Tables of Legislative Changes for this Act’s legislative history, including any changes not in force.

Provincial Sales Tax Act

[SBC 2012] CHAPTER 35

Part 7 — Refunds

Division 1 — Refunds from Collectors

Refund if no obligation to pay

146   If a person has paid to a collector an amount as tax under this Act in circumstances in which there was no legal obligation to pay the amount as tax, the collector may, within 180 days of the date the amount was paid, refund or credit to the person the amount paid as tax.

Refund if person fails to provide evidence at time of sale or lease

147   (1) This section applies to a collector if

(a) the collector has levied an amount as tax

(i) in accordance with section 37 (3), (4), (5) or (6), 39 (4), 44 (2), 49 (10), (11) or (12), 92 (2), 93 (4), 95 (3) or 145 (1.1) in respect of a purchase, lease or delivery of tangible personal property,

(ii) in accordance with section 105 (3) or 145 (1.1) in respect of a purchase or delivery of software, or

(iii) in accordance with section 119 (2), 123.1, 130 (2.1) or (3) or 145 (2) in respect of a purchase or provision of a taxable service,

in circumstances in which the collector would not have been required to levy the amount if the collector, at or before the time the tax was levied, had obtained from the person who was liable to pay the tax the declaration, information and document required under the applicable section, and

(b) the collector subsequently obtains from that person the declaration, information and document required under the applicable section.

(2) A collector to whom this section applies may, within 180 days of the date the amount referred to in subsection (1) is levied, refund or credit to the person referred to in that subsection the amount of tax paid or payable.

Prohibition — refund already received

148   (1) A person who has applied for or received a refund from the director under section 152 is not entitled to and must not request a refund or credit under section 146 in respect of the same payment of an amount as tax.

(2) A person who has applied for or received a refund from the director under section 153 is not entitled to and must not request a refund or credit under section 147 in respect of the same payment of tax.

Refund if motor vehicle returned to collector

149   If

(a) a purchaser returns a motor vehicle to the collector who sold it to the purchaser within one year of the date tax is payable under this Act in respect of the purchase, and

(b) in return for the motor vehicle the collector refunds or credits to the purchaser all or a portion of the purchase price,

the collector must, at the time the refund or credit of the purchase price is paid or allowed, refund or credit to the purchaser the amount of tax paid or payable by the purchaser that is attributable to the amount of the refund or credit of the purchase price.

Refund or credit of purchase price

150   Subject to section 149, if a collector, within 4 years of the date tax is payable under this Act in respect of the purchase, pays a refund or allows a credit to a purchaser of tangible personal property, software or a taxable service of all or a portion of the purchase price, the collector may, at the time the refund or credit of the purchase price is paid or allowed, refund or credit to the purchaser the amount of tax paid or payable by the purchaser that is attributable to the amount of the refund or credit of the purchase price.

Refund or credit of lease price

151   If a collector, within 4 years of the date tax is payable under this Act in respect of a lease, pays a refund or allows a credit to a lessee of tangible personal property of all or a portion of the lease price, the collector may, at the time the refund or credit of the lease price is paid or allowed, refund or credit to the lessee the amount of tax paid or payable by the lessee that is attributable to the amount of the refund or credit of the lease price.

Division 2 — Refunds from Director

Refund if no obligation to pay or collect

152   (1) If the director is satisfied that

(a) a person has paid an amount as tax under this Act in circumstances in which there was no legal obligation to pay the amount as tax, and

(b) the person has not been paid a refund or allowed a credit under section 146 in respect of the amount,

the director must refund to that person the amount paid as tax.

(2) If the director is satisfied that a collector has remitted to the government an amount in circumstances in which the collector

(a) was not required to levy and collect the amount under this Act, and

(b) did not collect the amount under this Act,

the director must refund that amount to the collector.

(3) If the director is satisfied that

(a) a collector has remitted an amount as tax under this Act, and

(b) the person liable to pay the tax has paid the tax directly to the government,

the director must refund that amount to the collector.

Refund if person fails to provide evidence at time of sale or lease

153   (1) If the director is satisfied that

(a) a person was required to pay to a collector an amount of tax under section 37 (3), (4), (5) or (6), 39 (4), 44 (2), 49 (10), (11) or (12), 92 (2), 93 (4), 95 (3), 105 (3), 119 (2), 123.1, 130 (2.1) or (3) or 145 (1.1) or (2) or a prescribed provision of the regulations in circumstances in which the person would not have been required to pay the amount if the collector had obtained from the person, at or before the time the tax was payable, the declaration, information and document required under the applicable section,

(b) the person would not have been required to pay the amount of tax to the collector but for the section of this Act or the regulations referred to in paragraph (a), as applicable, and

(c) the person has not been paid a refund or allowed a credit under section 147 in respect of the amount of tax paid,

the director must refund to the person the amount of tax paid.

(2) Subsection (1) does not apply if a person has received a refund or credit under Division 6 [Conveyances Used Interjurisdictionally] or 7 [Multijurisdictional Vehicles] of Part 3 in respect of the same payment of tax.

Refund if person fails to provide evidence at time of vehicle registration

153.1   If the director is satisfied that

(a) a person was required to pay to the Insurance Corporation of British Columbia an amount of tax under section 37, 49, 50, 52 or 100 in circumstances in which the person would not have been required to pay the amount if the Insurance Corporation of British Columbia had obtained from the person, at or before the time the tax was payable, the declaration, information and document required under section 30 (7), and

(b) the person would not have been required to pay the amount of tax to the Insurance Corporation of British Columbia but for section 30 (7),

the director must refund to the person the amount of tax paid.

Motor vehicle returned to manufacturer

154   If the director is satisfied that

(a) a purchaser returned a motor vehicle to the manufacturer more than one year after the date of purchase,

(b) the return of the motor vehicle to the manufacturer results from an independent, impartial third party dispute resolution process, and

(c) on the return of the motor vehicle the manufacturer paid a refund or allowed a credit to the purchaser of all or a portion of the purchase price,

the director must refund to the purchaser the amount of tax paid by the purchaser that is attributable to the amount of the refund or credit of the purchase price.

Refund in accordance with Nisga'a Nation Taxation Agreement

155   (1) In this section, "Taxation Agreement" has the same meaning as in section 6.1 of the Nisga'a Final Agreement Act.

(2) If the Taxation Agreement provides that a person is entitled to a refund of tax paid by the person under this Act, on application and on receipt of evidence establishing that the person is so entitled, the director must pay that refund to that person.

Refund in accordance with treaty first nation tax treatment agreement

156   If a tax treatment agreement of a treaty first nation provides that a person is entitled to a refund of tax paid by the person under this Act, on application and on receipt of evidence establishing that the person is so entitled, the director must pay that refund to that person.

Refund by director if collector does not provide refund

157   (1) If the director is satisfied that

(a) a collector paid a refund or allowed a credit to a person of all or a portion of a purchase price in the circumstances referred to in section 149 or 150, and

(b) the collector did not refund or credit to the person the amount of tax paid by the person under this Act that is attributable to the amount of the refund or credit of the purchase price,

the director must refund to that person the amount of tax paid by the person that is attributable to the amount of the refund or credit of the purchase price.

(2) If the director is satisfied that

(a) a collector paid a refund or allowed a credit to a person of all or a portion of a lease price in the circumstances referred to in section 151, and

(b) the collector did not refund or credit to the person the amount of tax paid by the person that is attributable to the amount of the refund or credit of the lease price,

the director must refund to that person the amount of tax paid by the person that is attributable to the amount of the refund or credit of the lease price.

Property shipped out of British Columbia

158   If the director is satisfied that

(a) a purchaser purchased tangible personal property at a sale in British Columbia for a business use and paid tax under Part 3 on the purchase,

(b) the tangible personal property,

(i) in the case of tangible personal property provided by way of promotional distribution, was shipped out of British Columbia in bulk to a recipient for the recipient's own use or consumption outside British Columbia, or

(ii) in any other case, was shipped out of British Columbia for use outside British Columbia, and

(c) no use whatsoever was made of the tangible personal property while it was in British Columbia other than to store it in and to ship it out of British Columbia,

the director must refund to the purchaser the tax paid under Part 3 on the purchase.

Property used to improve real property situated outside British Columbia

158.1   If the director is satisfied that

(a) a contractor purchased in British Columbia, brought or sent into British Columbia, or received delivery of in British Columbia, tangible personal property,

(b) the contractor paid tax under Part 3 of the Act in respect of the tangible personal property,

(c) the tangible personal property was processed, fabricated or manufactured into, or attached to or incorporated into, other tangible personal property,

(d) the contractor shipped the other tangible personal property referred to in paragraph (c) out of British Columbia for the purpose of fulfilling a contract for the supply and installation of affixed machinery or improvements to real property situated outside British Columbia,

(e) under the terms of the contract, the other tangible personal property referred to in paragraph (c) was used so that it ceased to be personal property at common law, and

(f) the contractor paid sales tax under a law of another jurisdiction in respect of the other tangible personal property referred to in paragraph (c) and has not obtained and is not entitled to obtain, under that law, a refund of or a credit or rebate for that sales tax,

the director must refund to the contractor the tax paid under Part 3 of the Act in relation to the tangible personal property referred to in paragraph (a).

Refund or deduction for bad debts

159   (1) In this section:

"specified amount", in relation to a transaction, means a portion, determined in the prescribed manner, of the amount remitted by the person to the government in respect of taxes payable under this Act on that transaction;

"transaction" means a transaction referred to in subsection (2) (a).

(2) This section applies to a person in respect of a transaction if

(a) the person sells or leases tangible personal property or provides software or a taxable service,

(b) the person, in accordance with this Act, remits the tax required under this Act to be levied and collected for the transaction,

(c) the person is a registrant at the time the transaction occurs,

(d) the purchaser or lessee does not pay to the person the full amount of the consideration in respect of the transaction, and

(e) within 4 years of the date on which the tax referred to in paragraph (b) was remitted, the person writes off as unrealizable or uncollectable the amount owing by the purchaser or lessee.

(3) A registrant to whom this section applies in respect of a transaction may deduct the specified amount from the amount of taxes that the registrant is required to remit under this Act in respect of the reporting period in which the registrant writes off the amount owing referred to in subsection (2) (e).

(4) A deduction referred to in subsection (3) must be made in a form specified by the director.

(5) If the director is satisfied that

(a) this section applies to a person in respect of a transaction, and

(b) if the person is a registrant, the person has not made a deduction under subsection (3) in respect of the transaction,

the director must refund the specified amount to the person.

(6) If a registrant who has made a deduction under subsection (3) or obtained a refund under subsection (5) recovers some or all of the amount referred to in subsection (2) (e) with respect to which the refund was paid or the deduction was made, the registrant must add an amount, determined in the prescribed manner, to the tax remitted by the registrant under this Act in respect of the reporting period in which the recovery was made.

(7) If a person, other than a registrant referred to in subsection (6), who obtained a refund under subsection (5) recovers some or all of the amount referred to in subsection (2) (e) with respect to which the refund was paid, the person must pay to the government an amount, determined in the prescribed manner, on or before the last day of the month following the month in which the recovery was made.

Refund to collector

160   (1) This section applies to a collector if the collector has

(a) levied and remitted an amount in accordance with this Act, and

(b) paid a refund or allowed a credit under Division 1 of this Part or under a regulation made under section 243 in respect of the amount referred to in paragraph (a) of this subsection.

(2) If a collector to whom this section applies is a registrant, the collector may deduct, in respect of the reporting period in which the refund or credit referred to in subsection (1) (b) is paid or allowed, the amount of the refund or credit from the amount of taxes that the collector is required to remit under this Act.

(3) A deduction referred to in subsection (2) must be made in a form specified by the director.

(4) If the director is satisfied that

(a) this section applies to a collector, and

(b) if the collector is a registrant, the collector has not made a deduction under subsection (2) in respect of the refund or credit referred to in subsection (1) (b),

the director must refund to the collector the amount of the refund or credit referred to in subsection (1) (b).

Refund to small seller

161   If the director is satisfied that

(a) a person as a small seller paid tax

(i) under section 37 in accordance with section 89 in respect of eligible tangible personal property,

(ii) under section 49 in accordance with section 90 in respect of eligible tangible personal property,

(iii) under section 55 in respect of eligible tangible personal property,

(iv) under section 112 in respect of software, or

(v) under Division 1, 2, 4 or 5 of Part 5 in respect of a taxable service purchased for resale, and

(b) when the person sold the eligible tangible personal property, software or taxable service, the person was a collector who levied and collected tax as required by this Act on that sale,

the director must pay a refund to the person of the amount of tax referred to in paragraph (a) that was paid by that person.

Refunds authorized or required under regulations

162   The director,

(a) if authorized by the regulations, may refund all or part of an amount paid or remitted under this Act by an applicant for a refund,

(b) if required by the regulations, must refund all or part of an amount paid or remitted under this Act by an applicant for a refund,

(c) if authorized by the regulations, may refund to an eligible charity or parents' advisory council who applies for a refund all or part of an amount paid under this Act by a person, and

(d) if required by the regulations, must refund to an eligible charity or parents' advisory council who applies for a refund all or part of an amount paid under this Act by a person.

Prohibition — refund or credit already received

163   (1) A person who has been paid a refund or allowed a credit under Division 1 is not entitled to and must not apply for a refund under this Division in respect of any portion of the amount of the refund or credit paid or allowed under Division 1.

(2) If a person is paid a refund under this Division and the person subsequently is paid a refund or allowed a credit under Division 1 in respect of the same payment of tax, that person must pay to the government the amount refunded under this Division on or before the last day of the month after the month in which the refund under Division 1 was received by that person.

Division 3 — General

Definition

164   In this Division, "refund" means a refund payable under this Act by the director.

Claim for refund

165   (1) To claim a refund, other than under section 155 or 156, a person, a parents' advisory council or an eligible charity must submit to the director

(a) subject to the regulations, a written application in the form and manner satisfactory to the director and signed,

(i) in the case of a claim by an eligible charity, by an authorized representative of the eligible charity,

(i.1) in the case of a claim by a parents' advisory council, by an authorized representative of the parents' advisory council, or

(ii) in any other case, by the person who paid or remitted the amount claimed, and

(b) any information or document required by the director.

(1.1) For the purposes of subsection (1) (a) (i), if the eligible charity making the claim is a corporation, the application must be signed by an authorized representative who is a member of the board of directors or an authorized employee of the corporation.

(2) For the purposes of subsection (1) (a) (ii), if the person who paid or remitted the amount claimed is a corporation, the application must be signed by a member of the board of directors or an authorized employee of the corporation.

(3) Despite anything in this Act or the regulations, the director is not required to pay a refund to a person, a parents' advisory council or an eligible charity, other than a refund under section 155 or 156, unless the requirements of this section are met.

Refund limits

166   (1) Despite section 16 of the Financial Administration Act,

(a) a refund of less than $10 must not be made,

(b) a refund, other than a refund referred to in paragraph (c) or (d), must not be made on a claim for a refund that is received by the director more than 4 years after the date on which the amount claimed was paid or remitted,

(c) a refund to a person under section 159 (5) must not be made on a claim for a refund that is received by the director more than 4 years after the date on which the person writes off as unrealizable or uncollectable the amount owing by the purchaser or lessee, and

(d) a refund to a collector under section 160 (4) must not be made on a claim for a refund that is received by the director more than 4 years after the date on which the collector paid a refund or allowed a credit under Division 1.

(2) Despite the Limitation Act, an action for a refund must not be brought more than 4 years after the date on which the amount claimed was paid or remitted.

Appropriation for refunds

167   If the director pays a refund, the director must pay the refund from the consolidated revenue fund.

Contents | Part 1 | Part 2 | Part 3 | Part 4 | Part 5 | Part 6 | Part 7 | Part 8 | Part 9 | Part 10 | Part 11 | Part 12 | Part 13 | Part 14 | Part 15