Logging Tax Act

Logging Tax Act 277 1996 76470131/96277/tlc96277_f E4tlc96277 Definitions 1 In this Act: amount owing means a taxes owing to the government, or b an amount owing to the government under section 21.1; assessment includes reassessment; commissioner means the Commissioner of Income Tax or another person designated by the minister; income means the amount determined as income under Division B of the Income Tax Act (Canada); income derived from logging operations means the aggregate of the amounts under the following paragraphs: a if i standing timber is cut in British Columbia by the taxpayer or logs cut from standing timber in British Columbia are acquired by the taxpayer, and ii the logs obtained are sold by the taxpayer in British Columbia, the taxpayer's income for the year from the sale; b if standing timber in British Columbia or the right to cut standing timber in British Columbia is sold by the taxpayer, the taxpayer's income for the year from the sale; c if i standing timber is cut or caused to be cut in British Columbia by the taxpayer or logs cut from standing timber in British Columbia are acquired by the taxpayer, and ii the logs obtained are exported from British Columbia, the amount computed by deducting from the value, as determined by the minister, of the logs exported in the taxation year, the aggregate of the costs of acquiring, cutting, transporting and selling the logs; d if i standing timber is cut or caused to be cut in British Columbia by the taxpayer or logs cut from standing timber in British Columbia have been acquired by the taxpayer, and ii if the taxpayer operates or causes to be operated a sawmill, pulp or paper plant, or other place for processing logs in Canada, the income of the taxpayer for the year from all sources minus the aggregate of iii the taxpayer's income from sources other than logging operations, iv any amount included in the aggregate as determined under paragraphs (a), (b) and (c), and v as applicable, A an amount equal to 8% of the original cost to the taxpayer of properties described in Schedule II of the Regulations of the Income Tax Act (Canada) used by the taxpayer in the taxation year in the producing of primary and secondary forest products, B if the amount determined under clause (A) is greater than 65% of the income remaining after making the deductions under subparagraphs (iii) and (iv), 65% of the income remaining, C if the amount determined under clause (A) is less than 35% of the income remaining, 35% of the income remaining; e if paragraph (d) applies and the taxpayer cuts standing timber outside British Columbia or acquires logs cut from standing timber outside British Columbia there may be deducted from the income determined under paragraph (d) the portion of the amount that bears the same ratio that the quantity of standing timber cut outside British Columbia and logs cut from standing timber outside British Columbia acquired by the taxpayer in the taxation year bears to the total quantity of standing timber cut and logs acquired by the taxpayer in the taxation year; log includes piles, poles, pulp logs, pulpwood, railway ties, saw logs, spars, wood chips and other cut timber of whatever length, whether round or flatted; logging operations includes a the sale of standing timber, b the sale of the right to cut standing timber, c the sale of logs, d the sale of primary and secondary forest products, e the delivery of logs to a sawmill, pulp or paper plant, or other place for processing or manufacturing, f the delivery of logs to a carrier for export, g the export of logs, h the acquisition of standing timber, i the acquisition of the right to cut standing timber, j the cutting of logs from standing timber, k the acquisition of logs, l the import of logs, m the producing of primary and secondary forest products, n the transportation of logs, or o any combination of operations referred to in paragraphs (a) to (n); primary forest product means everything resulting from the processing, treating, manufacturing or breaking down of logs, their by-products or wastes; pulp and paper includes all forms of processed or manufactured wood pulp, whether ultimately manufactured into paper or otherwise; secondary forest product means everything resulting from the processing, treating, manufacturing or breaking down of a primary forest product; standing timber includes all trees on Crown land, Crown granted land and other land; taxation year means the fiscal period, not exceeding 12 months, for which the accounts of the business of a taxpayer have been or are ordinarily made up and accepted for purposes of assessment under this Act, and in the absence of an established practice the fiscal period is that which the taxpayer adopts, except that if a taxpayer purports to change the taxpayer's usual and accepted fiscal period, the minister may, in the minister's discretion, disallow the change; taxes includes all taxes on income imposed, assessed, assessable or payable under this Act, and all penalties and interest that are, or may be, added to taxes under this Act; taxpayer means a a person other than a partnership who engages in or has income derived from logging operations in British Columbia, and b a person who is a member of a partnership which engages in or has income derived from logging operations in British Columbia and includes their heirs, executors, administrators, small estate declarants, trustees and agents. Tax payable 2 For each taxation year, a taxpayer must pay a tax equal to the lesser of a 10% of the taxpayer's income derived from logging operations in British Columbia, or b 150% of the credit that would have been allowable under section 127 (1) of the Income Tax Act (Canada) if i the tax referred to in paragraph (a) had been paid, and ii the tax otherwise payable by the taxpayer had, for the purposes of section 127 (1) of the Income Tax Act (Canada), been determined without allowing a deduction under section 127 (3) or (5) of the Income Tax Act (Canada). Deemed payment in first 2 years of operation 2.1 If a taxpayer has made a deduction for a taxation year in accordance with section 17 of the Income Tax Act , the taxpayer is deemed a to have paid on account of tax under this Act for the taxation year the amount that would have been deducted under section 15 of the Income Tax Act if no amount had been deducted under section 17 of that Act, and b to have paid that amount at the time of filing the return required under section 6 of this Act. Partnership income 3 If a partnership has income derived from logging operations, each person who is a member of the partnership is deemed to have income derived from logging operations in proportion to the person's share in the total partnership income derived from logging operations. Reporting engaging in logging operations 4 A person who is engaged in logging operations in British Columbia, or who has been so engaged in a period covered by this Act, must at once notify the commissioner of the fact that the person is or has been engaged in logging operations. Reporting discontinuance of logging operations 5 A person referred to in section 4 who discontinues logging operations in British Columbia must, on the discontinuance, notify the commissioner of the discontinuance. Return of income 6 1 Within 6 months after the end of the taxation year for a taxpayer, without any notice or demand, the taxpayer must deliver to the commissioner a return of the taxpayer's income during the taxation year, including an estimate of the amount of tax payable. 2 As an exception to subsection (1), a general partner in a limited partnership may, with the approval of the commissioner and if no tax is payable for the taxation year, file a single return on behalf of all limited partners in the partnership, and if the general partner does so, the limited partners need not file returns in respect of that partnership. Return by trustee, etc. 7 A trustee in bankruptcy, assignee, liquidator, receiver, administrator and other person administering, managing, winding up, controlling or otherwise dealing with the property or business of a taxpayer who has failed to make a return under this Act must make the required return. Power to demand return 8 1 If the commissioner desires a return from a person who has not made a return or a complete return, the commissioner may, by registered letter, demand from the person the return. 2 The person must deliver the return to the commissioner within the time specified in the demand under subsection (1). 3 In proceedings under this Act, an affidavit by the commissioner in which are stated the facts necessary to establish compliance by the commissioner with this section or default by the person on whom a demand is made must be admitted as evidence in any court, and is proof of the facts stated. 4 An affidavit referred to in subsection (3) must have attached to it as an exhibit a copy of the demand letter. Requirement to provide records 8.1 When required by the commissioner, a person must provide to the commissioner all records that the commissioner considers necessary to determine whether this Act and the regulations are being or have been complied with. Form of return and other related rules 9 1 A return required to be made under this Act must be in the form prescribed by the commissioner, and must set out fully the information that the form calls for. 2 The person required to make a return under this Act must deliver it to the commissioner within the time limited for making the return. 3 The commissioner may at any time extend the time for making a return. 4 A return of a corporation or partnership must be made and signed by an officer or member having personal knowledge of the affairs of the corporation or partnership. Inspection and audit powers 10 1 The commissioner is not bound to accept as correct the return made by a person. 2 If the commissioner thinks it necessary or expedient, or if the commissioner suspects that a person who has not made a return is liable to assessment, the commissioner or an officer designated by the commissioner must make an independent investigation as to the income of that person. 3 For the purposes of subsection (2) the commissioner or officer may a enter premises and examine property, b have access to and examine and take copies of and extracts from all books, accounts, vouchers and documents of the person, and c make the commissioner's or officer's own valuation and assessment of the taxable amount of the income. 4 The commissioner or officer may in any case examine the person on oath or otherwise, and on request the person must attend and submit to examination. 5 A person must not a interfere with, hinder or molest a person in doing anything that the person is authorized to do under this section, or b prevent or attempt to prevent a person from doing anything that the person is authorized to do under this section. Power to make inquiry 11 1 An officer authorized in writing by the minister may make inquiries the officer thinks necessary for ascertaining the income of a taxpayer. 2 For the purposes of subsection (1), the officer may make an order requiring a person to do either or both of the following: a attend, in person or by electronic means, before the officer to answer questions on oath or affirmation, or in any other manner; b produce for the officer a record or thing in the person's possession or control. 3 The officer may apply to the Supreme Court for an order a directing a person to comply with an order made under subsection (2), or b directing any directors and officers of a person to cause the person to comply with an order made under subsection (2). Contempt proceeding for uncooperative person 11.1 The failure or refusal of a person subject to an order under section 11 to do any of the following makes the person, on application to the Supreme Court by the officer authorized to act under that section, liable to be committed for contempt as if in breach of an order or judgment of the Supreme Court: a attend before the officer; b take an oath or make an affirmation; c answer questions; d produce records or things in the person's possession or control. Immunity protection 11.2 1 Subject to subsection (2), no legal proceeding for damages lies or may be commenced or maintained against the officer authorized to act under section 11, or a person acting on behalf of or under the direction of the officer, because of anything done or omitted a in the performance or intended performance of any duty under section 11, or b in the exercise or intended exercise of any power under section 11 or 11.1. 2 Subsection (1) does not apply to a person referred to in that subsection in relation to anything done or omitted by that person in bad faith. Power to specify books and records 12 1 A taxpayer must keep adequate books of account and records for the purposes of this Act. 2 If, in the opinion of the commissioner, the books or records kept by a taxpayer are inadequate for the purposes of this Act, the commissioner may specify the books and records to be kept by the taxpayer. 3 The minister may direct the commissioner to make the commissioner's own valuation and assessment of the taxable amount of the income of a taxpayer if a the books of account and records kept by a taxpayer are, in the opinion of the minister, inadequate for this Act, b the taxpayer, on the request of the commissioner, fails or refuses to produce the taxpayer's books of account or records for examination by the commissioner, or c the taxpayer alleges that the taxpayer's books of account or records have been lost or destroyed. Demand for information 13 1 For any purpose related to the administration or enforcement of this Act or the regulations, the commissioner may, by giving a person a demand notice, require from the person a any information or additional information, b the production of any records, or c a written statement. 2 A demand notice under subsection (1) a must be given by i leaving the demand notice with the person, or ii mailing the demand notice to the person by registered mail addressed to the person's address as stated in the person's last return made under this Act or as last known to the commissioner, b must specify a reasonable time by which the person must comply with the demand notice, and c in relation to a requirement under subsection (1) (c), may require the written statement to be made by way of affidavit or statutory declaration. 3 A person to whom a demand notice is given under this section must comply with the notice within the time specified in the notice. 4 The commissioner may issue a document certifying one or both of the following, and the document is proof of the facts certified in it: a a demand notice was given to a person in accordance with subsection (2); b a person has failed to comply with subsection (3) in respect of a demand notice given to the person under this section. Information sharing 14 1 In this section: authorized person means a person who is engaged or employed, or was formerly engaged or employed, by or on behalf of the government, to assist in carrying out the provisions of this Act; official means any person a who is employed in the service of, is engaged by or on behalf of, or occupies a position of responsibility in the service of the government of British Columbia, another province or Canada, or b who was formerly so employed or engaged or formerly occupied such a position; 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 by or on behalf of the 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; timber harvest information means a the name and address of a person who harvests timber in British Columbia, b the number of the timber mark held by the person, c the volume of timber harvested in British Columbia by the person, or d any stumpage paid or payable to the government by the person. 2 For certainty, timber harvest information is taxpayer information within the meaning of this section. 3 Despite any other enactment or law, except as authorized by this section, an official must not a knowingly provide, or knowingly allow to be provided, any taxpayer information to any person, 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. 4 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. 5 Subsections (3) and (4) do not apply in relation to the following: a criminal proceedings that have been commenced by the laying of an information or the preferring of an indictment under an Act of the Parliament of Canada; b any legal proceedings relating to the administration or enforcement of any enactment of British Columbia, another province or Canada that provides for the imposition or collection of a tax or duty. 6 Subject to subsection (8), an official may do one or more of the following: a provide to any person taxpayer information that can reasonably be considered 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 considered 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 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 as follows: 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; iii to an official of the ministry of the minister, solely for the purposes of the formulation or evaluation of fiscal policy; iv to an official solely for the purposes of the administration or enforcement of an enactment of British Columbia that provides for the imposition or collection of a tax or duty; v to an official solely for the purposes of the administration or enforcement of an Act of the Parliament of Canada, or an enactment of another province, that provides for the imposition or collection of a tax or duty; vi to an official solely for the purposes of the administration or enforcement of Part 11.1 of the Forest Act ; vii to an official solely for the purposes of the compilation of statistical information by the government or the government of Canada, as the case may be; viii to an official solely for the purposes of setting off, against any sum of money that may be due or payable by the government, a debt due to the government; d provide taxpayer information, or allow inspection of or access to taxpayer information, as the case may be, under, and solely for the purposes of, i sections 44 (1) 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 as provided for in, or ordered under, section 239 or 242 of the Family Law Act or section 8.2 or 9 of the Family Maintenance Enforcement Act ; f provide taxpayer information relating to a taxpayer i to the taxpayer, and ii with the consent of the taxpayer, to any other person; g 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; h provide taxpayer information solely for the purposes of sections 17, 18 and 19 of the Financial Administration Act ; i 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; j provide taxpayer information to a police officer, solely for the purposes of an investigation into 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 considered necessary for the purpose of ascertaining, with respect to an official, or with respect to any person related to the official, 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 under the Criminal Code , 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 the administration or enforcement of this Act; k provide taxpayer information to, or allow inspection of or access to taxpayer information by, any person otherwise legally entitled to the information under a prescribed enactment of British Columbia, solely for the purposes for which the person is entitled to the information. 7 Without limiting any provision of this or any other enactment, an official of the ministry of the minister and an official of the ministry of the minister responsible for the administration of the Forest Act may a collect timber harvest information that is relevant to the administration and enforcement of this Act, and b in accordance with an information-sharing agreement entered into under section 14.1 of this Act, provide to each other, or allow each other inspection of or access to, timber harvest information that can reasonably be considered necessary for the purposes of the administration and enforcement of this Act. 8 Except in accordance with an information-sharing agreement entered into under section 14.1, an official must not, under subsection (6) (a) to (c) and (h) to (k) of this section, provide taxpayer information to, or allow inspection of or access to taxpayer information by, a an official of a public body, as defined in the Freedom of Information and Protection of Privacy Act , other than the ministry of the minister, b an official of the government of Canada, or c an official of the government of another province. 9 An official may provide to appropriate persons any taxpayer information relating to imminent danger of death or physical injury to any individual. 10 The person who presides at a legal proceeding relating to the supervision, evaluation or discipline of an authorized person may make orders necessary to ensure that taxpayer information is not used or provided to any person for any purpose unrelated to the proceeding, including a an order that the proceeding be held in private, b an order banning publication of the taxpayer information, c an order to conceal the identity of the taxpayer to whom the taxpayer information relates, and d an order sealing the records of the proceeding. 11 To the extent of any inconsistency or conflict with section 32 or 33 of the Freedom of Information and Protection of Privacy Act , this section applies despite that Act. Information-sharing agreements 14.1 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, information for a purpose described in section 14 (6) and (7); taxpayer information has the same meaning as in section 14. 2 The minister may enter into an information-sharing agreement with a a public body as defined in the Freedom of Information and Protection of Privacy Act , b the government of Canada or an agency of that government, or c the government of a province or other jurisdiction in Canada or an agency of that government. 3 Subject to subsection (4), taxpayer information obtained by the minister under an information-sharing agreement may be used or disclosed only for the purposes for which it was obtained under the applicable agreement. 4 Subsection (3) does not prevent a any taxpayer information obtained by the minister under an information-sharing agreement with the government of Canada or an agency of that government from being used or disclosed for the purpose of administering and enforcing i an enactment administered by the minister that provides for the imposition or collection of a tax or duty, or ii Part 11.1 of the Forest Act , or b any taxpayer information obtained by the 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 or collection of a tax or duty. 5 The Lieutenant Governor in Council may prescribe terms and conditions to be included in the information-sharing agreements entered into by the minister. 6 For the purposes of section 14 (8), an information-sharing agreement entered into before the coming into force of this section is considered to be an information-sharing agreement entered into by the minister under this section. Instalment payments and interest 15 1 If a taxpayer's tax payable for the preceding taxation year exceeds the amount prescribed by the Lieutenant Governor in Council, the taxpayer must pay to the government, on account of the taxpayer's tax payable under this Act for the taxation year in respect of which the tax is payable, a not later than the end of the taxation year in respect of which the tax is payable, an amount equal to i 50% of the taxpayer's tax payable for the preceding taxation year, or ii 50% of the taxpayer's estimated tax payable for that taxation year, and b not later than the last day of the 3rd month following the month in which the taxation year in respect of which the tax is payable ended, an amount equal to i 25% of the taxpayer's tax payable for the preceding taxation year, or ii 25% of the taxpayer's estimated tax payable for that taxation year. 2 If a taxpayer fails to make a payment under subsection (1) (a) on or before the date required by that subsection, the taxpayer must pay to the government interest on the amount equal to 50% of the lesser of a the taxpayer's tax payable for the preceding taxation year, and b the taxpayer's tax payable for the taxation year in respect of which the tax is payable. 3 If a taxpayer fails to make a payment under subsection (1) (b) on or before the date required by that subsection, the taxpayer must pay to the government interest on the amount equal to 25% of the lesser of a the taxpayer's tax payable for the preceding taxation year, and b the taxpayer's tax payable for the taxation year in respect of which the tax is payable. 4 A taxpayer must pay interest under subsection (6) if the taxpayer makes a payment under subsection (1) (a) on or before the date required by that subsection that is less than the amount that is equal to 50% of the lesser of a the taxpayer's tax payable for the preceding taxation year, and b the taxpayer's tax payable for the taxation year in respect of which the tax is payable. 5 A taxpayer must pay interest under subsection (6) if the taxpayer makes a payment under subsection (1) (b) on or before the date required by that subsection that is less than the amount that is equal to 25% of the lesser of a the taxpayer's tax payable for the preceding taxation year, and b the taxpayer's tax payable for the taxation year in respect of which the tax is payable. 6 A taxpayer who must pay interest under this subsection must pay to the government interest on the amount by which the amount referred to in subsection (4) or (5) exceeds the payment referred to in that subsection. 7 Interest payable under subsection (2), (3) or (6) a must be calculated at the rate and in the manner prescribed by the Lieutenant Governor in Council, and b is payable from the date on which the taxpayer was required to make the payment under subsection (1) until the earlier of i the date of payment, and ii the date a return is required to be filed under section 6 (1). Payment with return and interest 15.1 1 On or before the day a taxpayer is required to file a tax return for a taxation year, the taxpayer must pay the amount remaining unpaid of the taxpayer's tax payable under this Act for the taxation year as estimated in the tax return. 2 If, for any period that begins after the day a taxpayer is required to file a tax return for a taxation year, the taxpayer's tax payable under this Act exceeds the total of all amounts paid before that period on account of that tax payable, the taxpayer must pay to the government interest on the amount of the excess for that period calculated at the rate and in the manner prescribed by the Lieutenant Governor in Council. Calculation of interest if loss carryback or other amount applied under Income Tax Act (Canada) 15.11 If the deduction, reduction or exclusion of amounts described in section 161 (7) (a) of the Income Tax Act (Canada), on account of tax payable under that Act, results in the reduction of tax payable under this Act for a taxation year, the following rules apply for the purposes of calculating interest payable under section 15 or 15.1 of this Act: a the amount of tax payable under this Act for the taxation year is deemed to be the amount that would be payable if the consequences of that deduction, reduction or exclusion were not taken into consideration; b the amount by which the tax payable under this Act is reduced for the taxation year is deemed to be an amount that was paid, on account of that tax payable, on the date that is 60 days after the date on which the commissioner receives notice, under section 20 (5) of this Act, that tax payable under the Income Tax Act (Canada) has been reassessed as a result of that deduction, reduction or exclusion. Waiver or cancellation of interest 15.2 The commissioner may at any time waive or cancel all or part of any interest otherwise payable under this Act by a taxpayer. Duty of trustee to pay 16 A person who is required by section 7 to make a return of income must, to the extent of the property or business that the person is administering, managing, winding up or otherwise controlling or dealing with, pay the amount owing with respect to that income before making a distribution of that property or business. Duty of trustee, etc., to obtain certificate before distribution 17 A trustee in bankruptcy, assignor, administrator and other similar person, before distributing assets under the person's control, must obtain a certificate from the commissioner that no amount owing under this Act that is properly chargeable against the person, property or business, as the case may be, remains outstanding. Examination of returns 18 The commissioner must have all returns received by the commissioner examined as soon as practicable after receipt. Assessment on examination of return 19 1 After completion of the examination of a taxpayer's return, the commissioner must a by assessment, verify or alter the amount of the tax as estimated by the taxpayer in the return, and b give a notice of the assessment to the taxpayer, that is dated as of the day on which it is mailed. 2 Any additional amount of tax due over the estimated amount, as shown by the notice of assessment, must be paid by the taxpayer to the commissioner not later than 30 days after the day on which the notice of assessment is issued. Assessments — general rules 20 1 Despite a prior assessment, or if no assessment has been made, a taxpayer continues to be liable for an amount owing under this Act. 2 The commissioner may assess a taxpayer for taxes for a taxation year a at any time i if the taxpayer has failed to file a return for the taxation year, ii if any person has made any misrepresentation or committed any fraud in making the taxpayer's return or supplying information under this Act for the taxation year, or iii if the taxpayer has filed a waiver under subsection (3) for the taxation year, or iv [Repealed 2010-18-67.] b within 5 years after the date of the original assessment for the taxation year. 2.1 The commissioner may assess a taxpayer at any time for any amount payable by the taxpayer under section 21.1. 3 A taxpayer may file with the commissioner a waiver for the taxation year, in the form and containing the information required by the commissioner, within 5 years of the date of the original assessment. 4 A waiver filed under subsection (3) continues in effect until 6 months after the taxpayer files with the commissioner a notice revoking the waiver in the form and containing the information required by the commissioner. 5 If a taxpayer is issued a notice of assessment or additional assessment under the Income Tax Act (Canada) that shows a change in an amount relevant to the calculation of tax payable, a the taxpayer must notify the commissioner within 90 days of receiving the notice, and b despite subsection (2) (b), the commissioner may assess a taxpayer for taxes for a taxation year before the end of the later of i the last day on which an assessment may be made under subsection (2) (b), and ii one year after the day that is the earlier of A the day that the commissioner is notified by the taxpayer under paragraph (a) of this subsection, and B the day that the commissioner is notified of the assessment or additional assessment under the Income Tax Act (Canada). 6 Subject to being amended, changed or varied on appeal or by reassessment, an assessment or penalty made or imposed under this Act is valid and binding despite any error, defect or omission in the assessment or penalty or in procedure. Refund of overpayment 21 1 If it appears from an investigation, examination or inquiry or from other information available to the commissioner that an overpayment has been made by a taxpayer, the minister, on the certificate of the commissioner as to the facts, must refund the amount overpaid to the taxpayer from the consolidated revenue fund. 2 As an exception to subsection (1), if there is an amount owing by the taxpayer, a the amount overpaid must, to the extent of it, be applied in satisfaction of the amount owing, and b notice must be given to the taxpayer, accompanied by the refund of any remainder of the amount overpaid remaining unapplied. 3 A refund under this section may be made with the notice of assessment or after giving the notice of assessment. Excess refund 21.1 1 If it appears from an investigation, examination or inquiry or from other information available to the commissioner that an amount has been refunded to a taxpayer for a taxation year in excess of the amount to which the taxpayer was entitled as a refund under this Act, a the excess is deemed to be an amount that became payable by the taxpayer on the date on which the amount was refunded, and b the taxpayer is liable to pay interest on the excess calculated at the rate and in the manner prescribed by the Lieutenant Governor in Council from the date the excess became payable to the date of payment. 2 If an amount applied under section 21 (2) to an amount owing by a taxpayer is in excess of the amount to which the taxpayer is entitled as a refund under this Act, this section applies in respect of the amount applied as if that amount had been refunded to the taxpayer on the date the amount was applied to the amount owing. Giving notice of assessment 22 1 A notice of assessment under this Act must be in writing. 2 A notice of assessment under this Act is sufficiently given if it is a delivered to the taxpayer personally, or b delivered at or is mailed addressed to the address of the taxpayer as stated in the taxpayer's last return made under this Act or as last known to the commissioner. 3 If the address referred to in subsection (2) (b) is not known to the commissioner, the notice of assessment may be mailed addressed to the taxpayer at the post office nearest to the place where the income arose. 4 The notice of assessment is deemed, for the purposes of this Act, to be given to the taxpayer on the day on which it is delivered or mailed. 5 Subject to an appeal under this Act, the entry by the commissioner, or by a person under the direction of the commissioner, of particulars of the assessment and taxation of a person in respect of income under this Act in any book or document kept by the commissioner, or the giving of a notice of assessment to a person under this Act, constitutes due assessment and taxation of that person for all purposes of this Act in respect of the income set out in the entry or notice. Appeal to minister 23 1 Except as otherwise provided in this Act, a person who objects to the amount at which the person is assessed, or who considers that the person is not liable to taxation, may personally or by agent, appeal to the minister. 2 Written notice of the appeal must be given to the minister within 90 days after the date the notice of assessment was given under section 22. 3 The notice must a state the name and address of the taxpayer, the amount of the tax and date of the notice of assessment, and b set out clearly and fully the reasons for the appeal and the facts on which it is based. 4 On receipt of the notice of appeal, the minister must a consider the notice and the information and documents on file in the office of the commissioner, b either i affirm, amend or change the assessment or nature of the assessment, or ii direct the commissioner to reconsider the assessment or nature of the assessment, and c notify the appellant of the decision. 5 An appeal may not be made under this section in relation to an assessment made under section 20 (2.1). 5.1 In making a decision under subsection (4) (b) (i), the minister is not required to increase an amount set out in the assessment. 5.2 If the commissioner does not change an assessment, or the nature of an assessment, after a reconsideration under subsection (4) (b) (ii), the commissioner must issue a notice of reconsideration to the person who appealed to the minister. 5.3 A person may appeal a notice of reconsideration by giving a notice of appeal to the minister within 90 days after the date shown on the notice of reconsideration. 6 The minister may, in writing, delegate any of the minister's powers or duties under this section. 7 A delegation under subsection (6) may be to a named person or to a class of persons. Notice of appeal 23.1 1 The date on which a notice of appeal is given to the minister under section 23 (2) or (5.3) is the date it is received by the minister. 2 A notice of appeal is conclusively deemed to have been given to the minister if it is received at a location and by a method specified by the minister. Appeal to Supreme Court 24 1 A decision of the minister under section 23 (4) (b) (i) may be appealed to the Supreme Court by way of a petition proceeding. 2 Subject to this section and the regulations, the Supreme Court Civil Rules relating to petition proceedings apply to appeals under this section. 2.1 Rule 18-3 of the Supreme Court Civil Rules does not apply to appeals under this section. 3 A petition commencing an appeal must be filed in the court registry within 90 days after the date on the minister's notification of decision. 4 Within 14 days after the filing of the petition under subsection (3), it must be served on the government in accordance with section 8 of the Crown Proceeding Act and the government must be designated "Her Majesty the Queen in right of the Province of British Columbia". 4.1 An appeal under this section is a new hearing that is not limited to the evidence and issues that were before the minister. 5 The court may a dismiss the appeal, b allow the appeal, c vary the decision from which the appeal is made, or d refer the decision back to the commissioner for reconsideration. Repealed 25 [Repealed 2021-18-47.] Irregularity in procedure 26 An assessment must not be varied or disallowed by a court because of an irregularity, informality, omission or error on the part of any person in the observation of any directory provision up to the date of the issuing of the notice of assessment. Effects of pending appeal and appeal changing decision 27 1 The giving of a notice of appeal by a taxpayer or delay in the hearing of the appeal does not in any way a affect the due date, the interest or penalties or any liability for payment provided by this Act in respect of tax that is the subject matter of the appeal, or b delay the collection of the tax. 2 If the tax is set aside or reduced on appeal, the minister must refund to the taxpayer the amount of the tax or excess tax paid by the taxpayer, and any additional interest or penalty imposed and paid on the tax or excess. 3 If the amount of an assessment is increased on appeal, the appellant must pay to the government a the additional amount owing to the government under this Act, and b any additional interest payable on the additional amount owing to the government under this Act. Amount owing forms lien 28 1 An amount owing under this Act by a taxpayer forms a lien and charge in favour of the government on the entire assets of the taxpayer or of the taxpayer's estate in the hands of any trustee, effective on the last day of the taxation year in respect of which the amount is owing, and has priority over all other claims except claims secured by liens, charges or encumbrances registered before that date. 2 Subject to section 17, the liens and charges created by this section and their priority are not lost or impaired by a any neglect, omission or error of the commissioner, or of any agent or officer, b the taking or failure to take proceedings to recover the amount owing, c the tender or acceptance of any partial payment of the amount owing, or d want of registration. Notice of proceedings 29 1 Before taking proceedings for the recovery of an amount owing under this Act, the commissioner must give notice to the taxpayer of the intention to enforce payment. 2 Failure to give the notice under subsection (1) does not affect the validity of any proceedings taken for the recovery of an amount owing under this Act. Recovery by action 30 An amount owing under this Act may be recovered by action in any court as for a debt due to the government, and the court may make an order as to the costs of the action in favour of or against the government. Filing of certificate having same effect as court judgment 31 1 If a person fails to pay an amount owing under this Act, the commissioner may a issue a certificate specifying the amount owed and the name of the person who owes it, and b file the certificate with any district registrar of the Supreme Court. 2 On filing under subsection (1), the certificate is of the same effect, and all proceedings may be taken on it as if it were a judgment of the court against the person named in the certificate for the recovery of a debt of the amount stated in it. Attachment of amounts payable to taxpayer 32 1 If the commissioner has knowledge or suspects that a person is or is about to become indebted or liable to make a payment to a taxpayer, the commissioner may demand that the person pay the money otherwise payable to the taxpayer in whole or in part to the commissioner on account of the taxpayer's liability under this Act. 2 Without limiting subsection (1), if the commissioner has knowledge or suspects that a person is about to advance money to, or make a payment on behalf of, or make a payment in respect of a negotiable instrument issued by a taxpayer, the commissioner may demand that the person pay to the commissioner on account of the taxpayer's liability under this Act the money that would otherwise be advanced or paid. 2.1 A demand under this section may be served by a personal service, b registered mail, or c electronic mail or fax. 3 If under this section the commissioner demands that a person pay to the commissioner, on account of the liability under this Act of a taxpayer, money otherwise payable by that person to the taxpayer as interest, rent, remuneration, a dividend, an annuity or other periodic payment, the demand a applies to all of those payments to be made by the person to the taxpayer until the liability under this Act is satisfied, and b operates to require payments to the commissioner out of each payment of the amount specified by the commissioner in the demand. 4 Money or a beneficial interest in money in a savings institution a on deposit to the credit of a taxpayer at the time a demand is served, or b deposited to the credit of a taxpayer after a demand is served is money for which the savings institution is indebted to the taxpayer within the meaning of this section, but money on deposit or deposited to the credit of a taxpayer as described in paragraph (a) or (b) does not include money on deposit or deposited to the credit of a taxpayer in the taxpayer's capacity as a trustee. 5 A demand under this section continues in effect until the earlier of a when the demand is satisfied, or b 90 days after the demand is served. 6 As an exception to subsection (5), if a demand is made in respect of a periodic payment referred to in subsection (3), the demand continues in effect until it is satisfied unless no periodic payment is made or is liable to be made within 90 days after the demand is served, in which case the demand ceases to have effect on the expiration of that period. 6.1 Money demanded from a person by the commissioner under this section becomes payable a as soon as the person is served with the demand, if the person is indebted or liable to make a payment to the taxpayer at the time the demand is served, or b as soon as the person becomes indebted or liable to make a payment to the taxpayer, in any other case. 7 A person who fails to comply with a demand under subsection (1) or (3) is liable to pay to the government an amount equal to the amount that the person was required under the applicable subsection to pay to the commissioner. 8 A person who fails to comply with a demand under subsection (2) is liable to pay to the government an amount equal to the lesser of a the aggregate of the money advanced or paid, and b the amount that the person was required under subsection (2) to pay to the commissioner. 9 The receipt of the commissioner for money paid under this section is a good and sufficient discharge of the original liability to the extent of the payment. 10 Money paid by any person to the commissioner in compliance with a demand under this section is deemed to have been paid by that person to the taxpayer. 11 If a person carries on business under a name or style other than the person's own name, a demand under this section may be addressed to the name or style under which the person carries on business and, in the case of personal service, is validly served if it is left with an adult person employed at the place of business of the addressee. 12 If persons carry on business in partnership, a demand under this section may be addressed to the partnership name and, in the case of personal service, is validly served if it is served on one of the partners or left with an adult person employed at the place of business of the partnership.

Seizure and sale 33 1 The commissioner or the commissioner's agent may levy an amount owing under this Act, with costs, by distress of a the goods and chattels of the person liable to pay the amount owing, b goods and chattels in the person's possession, wherever they may be found in British Columbia, or c goods and chattels found on the person's premises, the property of or in the possession of any other occupant of the premises, and that would be subject to distress for arrears of rent due to a landlord. 2 The costs chargeable under subsection (1) are those payable as between landlord and tenant. 3 If distress is made for the recovery of an amount owing under this Act, the commissioner or the commissioner's agent must, by advertisement posted up in at least 3 conspicuous public places in the locality where the sale of the property distrained is to be made, give at least 10 days' public notice of the time and place of the sale and of the name of the taxpayer whose property is to be sold. 4 At the time named in the notice the commissioner or agent must sell at public auction the property distrained, or as much of it as may be necessary. 5 If the property distrained is sold for more than the amount owing and costs, the surplus must be paid over to the person in whose possession the property was when the distress was made, and the person's receipt must be taken for it unless a claim to the surplus is made by another person on the ground that the property sold belonged to this other person, or that this other person is entitled to the surplus by lien or other right. 6 If a claim is made by the taxpayer in respect of whom the property was distrained, and the claim is admitted, the surplus must be paid to the taxpayer, and the taxpayer's receipt must be taken for it. 7 If a claim is contested, the surplus must be retained by the commissioner until the respective rights of the parties have been determined. Exercise of recovery powers 34 1 The powers conferred by this Act for the recovery of an amount owing by action in court, by filing a certificate, by distress and by demand under section 32 may be exercised separately, or concurrently, or cumulatively. 2 The liability of a person for the payment of an amount owing under this Act is not affected in any way by the fact that a fine or penalty has been imposed on or paid by the person in respect of a contravention of this Act. Limitation period 34.1 1 In this section, proceeding means a an action for the recovery of an amount owing, b the filing of a certificate, c the making of a demand, and d the registration or enforcement of a lien under this Act. 2 A proceeding may be commenced at any time within 7 years after the date of an assessment of the amount claimed in the proceeding. 3 Despite subsection (2), a proceeding that relates to a contravention of this Act or the regulations and that involves wilful default or fraud may be commenced at any time. Repealed 35-36 [Repealed 2023-23-126.] Waiver or cancellation of penalty 36.1 The commissioner may at any time waive or cancel all or part of any penalty otherwise payable by a person under this Act. Penalty for failure to notify commissioner or failure of trustee to pay 36.2 A person who fails to comply with any of the following provisions is liable to a penalty equal to $500: a section 4; b section 5; c section 16. Penalty for failure to deliver return 36.3 A taxpayer who fails to deliver a return under section 6 (1) for a taxation year within the time required under this Act is liable to a penalty equal to the total of a 5% of the amount remaining unpaid of the taxpayer's tax payable under this Act for the taxation year on the date the return was required to be delivered, and b the amount determined by the following formula: amount = 1% × A × B where A = the amount remaining unpaid of the taxpayer's tax payable under this Act for the taxation year on the date the return was required to be delivered; B = the number of months, not exceeding 12 and rounded down to the nearest whole number, in the period beginning on the date the return was required to be delivered and ending on the earlier of (i) the date the return was delivered, and (ii) the date a penalty is imposed under this section on the taxpayer. Penalty for repeated failure to deliver return 36.4 If all of the following apply: a a taxpayer fails to deliver a return under section 6 (1) for a taxation year within the time required under the Act; b the taxpayer subsequently fails to deliver a return under section 8 (1) for the taxation year within the time required by section 8 (2); c a penalty was imposed on the taxpayer under section 36.3 in respect of a failure to deliver a return referred to in that section for any of the 3 preceding taxation years, the taxpayer is liable to a penalty equal to the total of d 10% of the amount remaining unpaid of the taxpayer's tax payable under this Act for the taxation year on the date the return referred to in paragraph (a) was required to be delivered, and e the amount determined by the following formula: amount = 2% × A × B where A = the amount remaining unpaid of the taxpayer's tax payable under this Act for the taxation year on the date the return referred to in paragraph (a) was required to be delivered; B = the number of months, not exceeding 20 and rounded down to the nearest whole number, in the period beginning on the date the return referred to in paragraph (a) was required to be delivered and ending on the earlier of (i) the date the return was delivered, and (ii) the date a penalty is imposed under this section on the taxpayer. Penalty for failure to provide required information 36.5 If a person who is required to deliver a return fails to include in the return any required information or fails to deliver with the return any other required information or records, the person is liable to a penalty of $100 for each failure. Penalties respecting information and records 36.6 1 A person who fails to comply with a provision specified in subsection (2) is liable, in respect of each failure, to a penalty equal to the greater of a $100, and b $25 for each day during which the failure continues, to a maximum of $2 500. 2 For the purposes of subsection (1), the following provisions are specified: a section 8.1; b section 13 (3). Penalty for interfering with investigation, inspection or audit 36.7 A person who contravenes section 10 (5) (a) or (b) is liable to a penalty of $100 for each contravention. Gross negligence 36.8 1 In this section, additional tax means the amount by which the tax payable under this Act for a taxation year, calculated on the basis of accurate and complete information, exceeds the tax payable for the taxation year, calculated on the basis of the false statement or omission described in subsection (2). 2 If a person knowingly, or under circumstances amounting to gross negligence, makes, or participates in, assents to or acquiesces in the making of, a false statement or an omission in a return, notice or other record delivered or supplied or in information supplied under this Act for a taxation year, the taxpayer is liable to a penalty equal to the greater of a $100, and b 50% of the additional tax. Misrepresentation by third party 36.9 1 Section 163.2 of the Income Tax Act (Canada) applies for the purposes of this Act with the changes the circumstances require for the purposes of this Act. 2 Without limiting subsection (1), in applying section 163.2 of the Income Tax Act (Canada) for the purposes of this Act, the following rules apply: a a reference in that section to the Income Tax Act (Canada) is to be read as a reference to this Act; b a reference in that section to an assessment is to be read as a reference to an assessment under this Act; c that section is to be read without reference to the definition of "excluded activity" in subsection (1) of that section and without reference to subsections (7) and (8) (b) (i) and (ii) of that section; d subsection (5) of that section is to be read as if i the reference to "subsection 163 (2)" were a reference to section 36.8 (2) of this Act, and ii the reference to "return filed for the purposes of this Act" were a reference to "return, notice or other record delivered or supplied or in information supplied under this Act"; e subsection (10) of that section must be read as if the reference to section 163 (3) were a reference to subsection (3) of this section; f subsection (15) of that section must be read as if the reference to "or an employee engaged in an excluded activity" were excluded. 3 In an appeal to the Supreme Court under section 24 of this Act, the onus is on the minister to establish the facts justifying the assessment of a penalty to which a person is liable under this section. Repealed 37 [Repealed 2023-23-129.] General offences 37.1 A person who does any of the following commits an offence: a makes, or participates in, assents to or acquiesces in the making of, a false or deceptive statement in a return, notice or other record required to be delivered or supplied under this Act; b destroys, alters, mutilates, hides or otherwise disposes of a record to evade payment of an amount to be paid to the government under this Act; c makes, or participates in, assents to or acquiesces in the making of, a false or deceptive entry in a record related to an amount to be paid to the government under this Act; d omits, or participates in, assents to or acquiesces in the omission of, a material particular in a record required to be kept under this Act; e makes or uses, or participates in, assents to or acquiesces in the making or use of, a record in a false or deceptive manner in order to obtain a tax benefit; f wilfully, in any manner, evades or attempts to evade payment of tax payable under this Act; g conspires with any person to do anything described in paragraphs (a) to (f). Penalties 37.2 1 An individual who commits an offence under section 37.1 is liable to a a fine of not less than 50% and not more than 200% of the amount of tax that was sought to be evaded, b imprisonment for not more than 2 years, or c both the fine and imprisonment referred to in paragraphs (a) and (b) of this subsection. 2 A corporation that commits an offence under section 37.1 is liable to a fine of not less than 50% and not more than 200% of the amount of tax that was sought to be evaded. Offences for failure to provide records or information required by commissioner or for interference 37.3 1 A person commits an offence if the person contravenes any of the following provisions: a section 8.1; b section 10 (5) (a) or (b); c section 13 (3). 2 An individual who commits an offence under subsection (1) is liable to a a fine of not more than $100 000, b imprisonment for not more than 12 months, or c both the fine and imprisonment referred to in paragraphs (a) and (b) of this subsection. 3 A corporation that commits an offence under subsection (1) is liable to a fine of not more than $100 000. Offences in relation to confidential information 37.4 1 A person commits an offence if the person a contravenes section 14 (3), or b knowingly contravenes an order made under section 14 (10). 2 A person commits an offence if a the person has been provided with taxpayer information for a particular purpose under section 14 (6) (a) to (e), (h), (i) or (k) or (7), and b the person knowingly, for a purpose other than the purpose referred to in paragraph (a), uses the information, provides the information or allows the information to be provided to any person or allows any person to access the information. 3 A person who commits an offence under subsection (1) or (2) is liable to a a fine of not more than $5 000, b imprisonment for not more than 12 months, or c both the fine and imprisonment referred to in paragraphs (a) and (b) of this subsection. Offence by corporation 37.5 1 If a corporation commits an offence under this Act, an employee, officer, director or agent of the corporation who authorized, permitted or acquiesced in the offence also commits that offence, whether or not the corporation is prosecuted for the offence. 2 In a prosecution for an offence under this Act, it is sufficient proof of the offence to establish that it was committed by an employee, officer, director or agent of the defendant, whether or not the employee, officer, director or agent is identified or has been prosecuted for the offence. 3 Subsection (2) does not apply if the defendant establishes that the defendant exercised due diligence to prevent the commission of the offence. Limitation period for prosecution 38 1 An information or complaint under this Act may be laid or made by a person authorized by the minister. 2 An information or complaint for contravening this Act may be for one or more offences, and no information, complaint, warrant, conviction or other proceeding in a prosecution under this Act is objectionable or insufficient by reason of the fact that it relates to 2 or more offences. 3 An information in respect of an offence against this Act must be laid within 6 years from the time when the matter of the information arose. Section 5 of Offence Act 38.1 Section 5 of the Offence Act does not apply to this Act or the regulations. Method of providing notices and demands 39 1 A notice, other than a notice of assessment, or a demand that the minister, the commissioner or an officer is authorized or required to give to or make to or on a person under this Act must be in writing directed to the person. 1.1 A demand under section 32 is sufficiently made if it is delivered as set out in subsection (2) of this section or is sent by electronic mail or fax to the electronic mail address or fax number stated in the person's last return or to the last electronic mail address or fax number known to the commissioner. 2 A notice or demand referred to in subsection (1) is sufficiently given or made if it is a delivered to the person personally, or b delivered at, mailed or sent by registered mail addressed to the person's address as stated in the person's last return made under this Act or as last known to the commissioner. 3 Proof of the receipt by a person of a notice or demand referred to in subsection (1) may be established in any court by showing that the notice or demand was delivered or mailed in a manner provided in subsection (2), and the burden of proof is on the person seeking to establish the fact that the notice or demand was not received by that person. 3.1 Subsections (2) and (3) do not apply to a demand notice under section 13. 4 For a prosecution or an action or proceedings in respect of any matter arising under this Act, the facts necessary to establish any of the following may be sufficiently proved in any court by the production of an affidavit of the commissioner or other officer of the ministry setting out the facts: a the giving of notice or the making of a demand; b compliance on the part of the commissioner or other officer with this Act; c the failure of a person to comply with this Act. Appointments 40 1 This Act is to be administered by the Commissioner of Income Tax or another person designated by the minister. 2 Other officers and employees considered necessary for the administration of this Act may be appointed under the Public Service Act . Delegation 41 1 The commissioner may, in writing, delegate any of the commissioner's powers or duties under this Act. 2 A delegation under subsection (1) may be to a named person or to a class of persons. Power to make regulations 42 The Lieutenant Governor in Council may make regulations referred to in section 41 of the Interpretation Act . Regulations in relation to appeals 43 1 The Lieutenant Governor in Council may make regulations as follows: a establishing rules governing the practice and procedure of the Supreme Court in an appeal under this Act; b providing that a rule under the Supreme Court Civil Rules does not apply to an appeal under this Act; c modifying a rule under the Supreme Court Civil Rules that applies to an appeal under this Act; d adopting a rule under the Supreme Court Civil Rules that otherwise does not apply to an appeal under this Act and modifying that rule for the purposes of an appeal under this Act. 2 Without limiting subsection (1), in making a regulation under subsection (1), the Lieutenant Governor in Council may make any rule authorized by sections 1 and 2 of the Court Rules Act . 3 To the extent of any inconsistency or conflict between a regulation made under subsection (1) and the Supreme Court Civil Rules, the regulation made under subsection (1) prevails.