Proposed amendments introduced today as Bill 9, the Finance Statutes Amendment Act, 2017, will clarify rules and improve fairness to align with government’s ongoing commitment to reduce red tape and simplify and streamline regulatory requirements.
The amendments will affect the Tobacco Tax Act, Income Tax Act, Insurance Premium Tax Act and the Logging Tax Act.
- Tobacco Tax Act – collection bond: The proposed amendment will give the director discretion to require a bond amount of at least $5,000 and not greater than the maximum bond amount. This will improve the fairness of the Tobacco Tax Act regarding the amount of collection bond the director may require as a condition of holding a wholesale dealer permit or retail authorization, and will result in new applicants being treated the same way as existing dealers where a bond is required.
- Income Tax Act: The amendment will ensure the Income Tax Act reflects existing tax policy and will harmonize the administrative provisions with the Federal Income Tax Act. The amendments will clarify the rules which apply when the BC Child Fitness Credit is claimed in the year of bankruptcy; allow the province to meet its obligations under the Tax Collection Agreement by including provisions similar to the administrative provisions of the federal act; and ensure that the legislation implementing the Film and Television Tax Credits remains consistent with government intent.
- Insurance Premium Tax Act; Logging Tax Act: Proposed amendments to the Insurance Premium Tax Act (IPTA) and the Logging Tax Act (LTA) will clarify that interest on an excess refund is calculated beginning on the day that the excess refund was paid by the government. The proposal also ensures that interest payable on unpaid logging taxes for a prior year will not be affected by loss carrybacks or other future events that reduce the prior year’s tax payable.