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This Act is current to July 11, 2018
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 3 — Collection of Tax

Collection agreement

69   (1) The finance minister, with the approval of the Lieutenant Governor in Council, may, on behalf of the government of British Columbia, enter into a collection agreement with the government of Canada under which the government of Canada will collect taxes payable under this Act on behalf of British Columbia and will make payments to British Columbia for the taxes collected, under the terms and conditions of the collection agreement.

(2) The finance minister, with the approval of the Lieutenant Governor in Council, may, on behalf of the government of British Columbia, enter into an agreement amending the terms and conditions of a collection agreement.

(3) If a collection agreement is entered into, the federal minister, on behalf of or as agent for the Provincial minister, is authorized to use all the powers, to perform all the duties and to exercise any discretion that the Provincial minister or the deputy Provincial minister has under this Act, including the discretion to refuse to permit the production in judicial or other proceedings in British Columbia of any document that it is not, in the opinion of the federal minister, in the interests of public policy to produce.

(4) If a collection agreement is entered into, the Commissioner of Customs and Revenue may

(a) use all the powers, perform the duties and exercise any discretion that the federal minister has under subsection (3) or otherwise under this Act, and

(b) designate officers of his or her agency to carry out functions, duties and powers similar to those that are exercised by them on his or her behalf under the federal Act.

(5) Despite subsection (3), the federal minister is not authorized to use, perform or exercise any of the following powers, duties or discretions of the Provincial minister:

(a) and (b) [Repealed 2018-12-17.]

(c) respecting the collection and sharing of information under sections 13.1 (5), 21 (15), 25.1 (9), 77.1, 95 (2) and 130;

(d) respecting an appeal under section 18;

(e) respecting an information-sharing agreement under section 65;

(f) any power, duty or discretion under sections 68 (4) and 95 (1).

Payments on account

70   (1) A collection agreement may provide that if any payment is received by the federal minister on account of tax payable by a taxpayer for a taxation year under this Act, the federal Act or an income tax statute of another agreeing province, or under any 2 or more of those statutes, the payment received may be applied by the federal minister toward the tax payable by the taxpayer under any of the statutes in the manner specified in the agreement, even though the taxpayer directed that the payment be applied in any other manner or made no direction for its application.

(2) Any payment or part of it applied by the federal minister under a collection agreement toward the tax payable by a taxpayer for a taxation year under this Act

(a) relieves the taxpayer of liability to pay the tax to the extent of the payment, and

(b) is deemed to have been applied in accordance with a direction made by the taxpayer.

No action against persons withholding tax

71   If a collection agreement is in effect and an amount is remitted to the Receiver General for Canada under section 153 (1) of the federal Act, as it applies for the purposes of this Act, on account of the tax of an individual who is resident on the last day of the taxation year in another agreeing province,

(a) no action lies for recovery of the amount by that individual, and

(b) the amount may not be applied in discharge of any liability of that individual under this Act.

Relief of taxpayer

72   (1) If a collection agreement is entered into, an individual resident in British Columbia on the last day of the taxation year is not required to remit any amount on account of tax payable by the individual under this Act for the taxation year to the extent of the amount deducted or withheld on account of the individual's tax for that year under the income tax statute of another agreeing province.

(2) If the total amount deducted or withheld on account of tax payable under this Act and under the income tax statute of another agreeing province by an individual resident in British Columbia on the last day of the taxation year to whom subsection (1) applies exceeds the tax payable by the individual under this Act for that year, section 40 of this Act applies to the individual as though the excess were an overpayment under this Act.

Non-agreeing provinces

73   (1) In this section:

"adjusting payment" means a payment, calculated under this section, made by or on the direction of British Columbia to a non-agreeing province;

"amount deducted or withheld" does not include any refund made in respect of that amount;

"non-agreeing province" means a province that is not an agreeing province.

(2) If, in respect of a taxation year, a non-agreeing province is authorized to make a payment to British Columbia that, in the opinion of the finance minister, corresponds to an adjusting payment, the Lieutenant Governor in Council may authorize the finance minister to make an adjusting payment to that non-agreeing province and enter into any agreement that may be necessary to carry out the purposes of this section.

(3) If a collection agreement is entered into, the adjusting payment that may be made under subsection (2) may be made by the government of Canada if it has agreed to act on the direction of British Columbia as communicated by the finance minister to the federal minister.

(4) The adjusting payment to be made under this section is an amount that equals the aggregate of the amounts deducted or withheld under section 153 (1) of the federal Act, as it applies for the purposes of this Act, in respect of the tax payable for a taxation year by individuals who

(a) file returns under the federal Act,

(b) are taxable under that Act for that year, and

(c) are resident on the last day of that year in the non-agreeing province to which the adjusting payment is to be made.

(5) If an adjusting payment is to be made and there has been an amount deducted or withheld under section 153 (1) of the federal Act, as it applies for the purposes of this Act, on account of the tax for a taxation year of an individual who is taxable under the federal Act in respect of that year and who is resident on the last day of that taxation year in the non-agreeing province,

(a) no action lies for the recovery of the amount by that individual, and

(b) the amount may not be applied in discharge of any liability of that individual under this Act.

(6) If an adjusting payment to a non-agreeing province is to be made under this section for a taxation year, an individual resident in British Columbia on the last day of the taxation year is not required to remit any amount on account of tax payable by the individual under this Act for the taxation year to the extent of the amount deducted or withheld on account of the individual's income tax for that year under the law of that non-agreeing province.

(7) If an adjusting payment to a non-agreeing province is to be made under this section for a taxation year, the total amount deducted or withheld on account of tax payable under this Act and on account of the income tax payable under the law of the non-agreeing province by an individual resident in British Columbia on the last day of the taxation year to whom subsection (6) applies exceeds the tax payable by the individual under this Act for that year, section 40 of this Act applies to the individual as though the excess were an overpayment under this Act.

(8) If a collection agreement is entered into and the government of Canada has agreed in respect of a taxation year to carry out the direction of British Columbia and to make an adjusting payment on behalf of British Columbia, the adjusting payment

(a) must be made out of any money that has been collected on account of tax under this Act for any taxation year, and

(b) is the amount calculated by the federal minister to be the amount required to be paid under subsection (4).

(9) The adjusting payment under subsection (8) discharges any obligation the government of Canada may have to pay British Columbia for any amount deducted or withheld under section 153 (1) of the federal Act, as it applies for the purposes of this Act, to which subsection (5) of this section applies.

Enforcement of judgments

74   (1) Despite the Court Order Enforcement Act, if a collection agreement is entered into, a judgment of a superior court of an agreeing province under that province's income tax statute, including any certificate registered in that superior court in a manner similar to that provided in section 223 (3) of the federal Act, as it applies for the purposes of this Act, may be enforced in the manner provided in section 223 of the federal Act, as it applies for the purposes of this Act, by registering a copy of the judgment or certificate, certified by the registrar of the proper superior court.

(2) The registered judgment or certificate referred to in subsection (1) is deemed, for the purposes of this Act, to be a judgment of the Supreme Court.

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