Proposed amendments introduced today as Bill 14, the Finance Statutes Amendment Act, 2016, align with government’s ongoing commitment to reduce red tape and simplify and streamline regulatory requirements by ensuring the clarity and effective administration of tax systems.

The amendments will affect the Carbon Tax Act, Motor Fuel Tax Act, Provincial Sales Tax Act, Income Tax Act, Insurance Premium Tax Act and the Logging Tax Act.

Carbon Tax Act and the Motor Fuel Tax Act:

Changes to these two acts will bring additional clarity to the obligations of fuel sellers by clarifying the amount of security payable to government. The bill also makes changes designed to reduce the administrative burden on fuel sellers, providing certainty to fuel sellers and purchasers by ensuring taxpayers cannot be assessed multiple times for the same transaction, while ensuring government has the necessary authority to assess and impose penalties for amounts owing. Amendments to the Motor Fuel Tax Act will also move tax remittance dates in the act to the regulations, consistent with the structure of the Carbon Tax Act. This will allow businesses that make small remittances to do so less frequently.

Provincial Sales Tax Act:

Technical changes to the act will enhance registration requirements and clarify some exemption provisions. Amendments will require businesses outside British Columbia, but within Canada, to be registered for PST if they source all their goods in British Columbia to sell to customers in B.C. The amendments also expand voluntary registration to certain out-of-country businesses to help these businesses better serve their customers, since their customers will no longer have the burden of self-assessing PST. Other amendments will clarify some exemptions and the application of tax to affixed machinery in certain circumstances. 

Income Tax Act:

Amendments to the provincial Income Tax Act will ensure it remains harmonized with the federal Income Tax Act. Amendments are made to the refundable sales tax credit, the foreign tax credit, and the scientific research and experimental development tax credit to ensure these provisions continue to align with parallel federal provisions. Additional amendments to the training tax credit ensure the program continues to interact as intended with federal legislation.

Insurance Premium Tax Act and the Logging Tax Act:

Amendments to the Insurance Premium Tax Act and the Logging Tax Act will modernize provisions requiring taxpayers to pay instalments, as well as the provisions that permit the waiving of interest and the delegation of the commissioner’s authority and responsibilities. The Insurance Premium Tax Act is also amended to eliminate an ambiguity with respect to the tax treatment of the compulsory insurance fee payable by lawyers under the Legal Profession Act.