Income Tax Act

Income Tax Act

[RSBC 1996] CHAPTER 215

Definitions and interpretation

1 (1) In this Act:

"agreeing province" means a province that has entered into an agreement with the government of Canada under which the government of Canada will collect taxes payable under that province's income tax statute and will make payments to that province in respect of the taxes so collected;

"amount" has the same meaning as in the federal Act;

"assessment" has the same meaning as in the federal Act;

"balance-due day" has the same meaning as in the federal Act;

"British Columbia" means the Province of British Columbia;

"business" has the same meaning as in the federal Act;

"Canadian-controlled private corporation" has the same meaning as in section 248 of the federal Act;

"collection agreement" means an agreement entered into under section 69 (1);

"corporation" has the same meaning as in the federal Act;

"court" means the Supreme Court of British Columbia;

"deputy head" means,

(a) if a collection agreement is not in effect, the deputy Provincial minister, or

(b) if a collection agreement is in effect, the Commissioner of Customs and Revenue;

"employed" has the same meaning as in the federal Act;

"employee" has the same meaning as in the federal Act;

"employer" has the same meaning as in the federal Act;

"federal Act" means the Income Tax Act (Canada);

"federal minister" means,

(a) in relation to the remittance of any amount as or on account of tax payable under this Act, the Receiver General for Canada, and

(b) in relation to any other matter, the Minister of National Revenue;

"federal regulations" means the regulations made under the federal Act;

"finance minister" means the member of the Executive Council charged with the administration of the Financial Administration Act;

"fiscal period" has the same meaning as in the federal Act;

"income tax statute" means, in relation to an agreeing province, the law of that province that imposes a tax similar to the tax imposed under this Act;

"individual" means a person other than a corporation and includes a trust or estate;

"loss" means a loss as determined in accordance with and for the purposes of the federal Act;

"minister" means,

(a) if a collection agreement is not in effect, the Provincial minister, or

(b) if a collection agreement is in effect, the federal minister;

"ministry" means the ministry of the Provincial minister;

"permanent establishment" has the same meaning as in the federal Act;

"person", or any word or expression descriptive of a person, has the same meaning as in the federal Act;

"Provincial minister" means the member of the Executive Council charged with the administration of this Act;

"regulation" means a regulation made by the Lieutenant Governor in Council under this Act;

"taxable income" has the same meaning as in the federal Act;

"taxation year" has the same meaning as in section 249 (1) of the federal Act and, in the case of an estate or trust arising on death, has the same meaning as in section 104 (23) of that Act;

"taxpayer" has the same meaning as in the federal Act.

(2) The expression "last day of the taxation year", in the case of an individual who resided in Canada at any time in the taxation year but ceased to reside in Canada before the last day of that year, is deemed to be a reference to the last day in the taxation year on which the individual resided in Canada.

(3) The tax payable by a taxpayer under this Act or under Part I of the federal Act means the tax payable by the taxpayer as fixed by assessment or reassessment, subject to variation on objection or on appeal, if any, in accordance with this Act or Part I of the federal Act, as the case may be.

(4) For the purposes of this Act, unless they are at variance with the definitions in this Act or in the regulations made under this Act, the definitions in the federal Act, and the definitions and interpretations made by federal regulations, apply.

(4.1) For the purposes of this Act, a series of transactions or events is deemed to include any related transactions or events completed in contemplation of the series.

(5) In any case of doubt, the provisions of this Act must be applied and interpreted in a manner consistent with similar provisions of the federal Act.

(6) Section 248 (11) of the federal Act applies for the purposes of this Act to the extent that that provision applies to sections 161 (1), (2) and (11), 164 (3) to (4) and 227 (8.3) and (9.2) of the federal Act.

(7) If a provision, in this subsection referred to as "that section", of the federal Act or the federal regulations is made applicable for the purposes of this Act, that section, as amended from time to time before or after this subsection came into force, applies with such modifications as the circumstances require for the purposes of this Act as though it had been enacted as a provision of this Act, and in applying that section for the purposes of this Act, in addition to any other modifications required by the circumstances,

(a) a reference in that section to tax under Part I of the federal Act must be read as a reference to tax under this Act,

(b) if that section contains a reference to tax under any of Parts I.1 to XIV of the federal Act, that section must be read without reference to tax under any of those Parts and without reference to any portion of that section that applies only to or in respect of tax under any of those Parts,

(c) a reference in that section to a particular provision of the federal Act that is the same as or similar to a provision of this Act must be read as a reference to the provision of this Act,

(d) any reference in that section to a particular provision of the federal Act that applies for the purposes of this Act must be read as a reference to the particular provision as it applies for the purposes of this Act,

(e) if that section contains a reference to any of Parts I.1 to XIV of the federal Act or to a provision in any of those Parts, that section must be read without reference to that Part or without reference to that provision, as the case may be, and without reference to any portion of that section that applies only because of the application of any of those Parts or the application of a provision in any of those Parts,

(f) subject to subsection (7.1), if that section contains a reference to the Bankruptcy and Insolvency Act (Canada), that section must be read without reference to the Bankruptcy and Insolvency Act (Canada),

(g) subject to paragraph (h), a reference in that section to the federal Act or the federal regulations must be read as including a reference to this Act or a regulation made under this Act,

(h) a reference in that section to the words "under this Act or under an Act of a province with which the Minister of Finance has entered into an agreement for the collection of taxes payable to the province under that Act" must be read as a reference to this Act, and

(i) subject to subsections (8) and (8.1), a reference in that section to a word or expression set out in Column 1 of the following table must be read as a reference to the word or expression set out opposite it in Column 2:

TABLE

Column 1	Column 2
Her Majesty	Her Majesty in Right of the Province of British Columbia
Canada	British Columbia
Receiver General	finance minister
Commissioner of Customs and Revenue	deputy head
Deputy Attorney General of Canada	Deputy Attorney General of British Columbia
Tax Court of Canada	Supreme Court of British Columbia
Tax Court of Canada Act	Supreme Court Act
Federal Court of Canada	Supreme Court of British Columbia
Federal Court Act	Supreme Court Act
Registrar of the Tax Court of Canada	Registrar of the Supreme Court of British Columbia
Registry of the Federal Court	Registry of the Supreme Court of British Columbia
Criminal Code	Offence Act
Canada Customs and Revenue Agency	ministry
Minister	Provincial minister

(7.1) Subsection (7) (f) does not apply to section 222 (8) (d) of the federal Act as that section applies for the purposes of this Act.

(8) In applying any of the following provisions of the federal Act for the purposes of this Act, a reference in that provision to Canada must be read as a reference to Canada:

(a) section 118.5;

(b) section 118.6 (1);

(b.1) the definition of "Canadian exploration expense" in section 66.1 (6) of the federal Act as that definition applies for the purposes of section 4.721 of this Act by virtue of paragraph (b) of the definition of "BC flow-through mining expenditure" in section 4.721 (1) of this Act;

(c) the definition of "specified individual" in section 120.4 of the federal Act as that definition applies for the purposes of sections 4 (1) and 4.84 of this Act;

(c.1) the definition of "return of income" in section 122.5 (1) of the federal Act as that definition applies for the purposes of section 8.1 of this Act;

(c.2) section 122.5 (6.2) as that section applies for the purposes of section 8.1 of this Act;

(d) the definitions of "eligible individual" and "return of income" in section 122.6 of the federal Act as those definitions apply for the purposes of sections 10 to 13 of this Act;

(d.1) section 222 (8) (c);

(d.2) the definition of "non-resident" in section 248 (1) of the federal Act as that definition applies for the purposes of section 122.5 (6.2) of the federal Act, as that section applies for the purposes of section 8.1 of this Act;

(e) the definition of "taxable income earned in Canada" in section 248 (1) of the federal Act as that definition applies for the purposes of Division 2 of Part 1 of this Act.

(8.1) If a collection agreement is in effect, in applying the federal Act for the purposes of this Act,

(a) a reference to the Commissioner of Customs and Revenue in the federal Act must continue to be read as a reference to the Commissioner of Customs and Revenue,

(b) a reference to the Minister in the federal Act must continue to be read as a reference to the Minister, and

(c) a reference to the Receiver General in the federal Act must continue to be read as a reference to the Receiver General.

(9) [Repealed 2003-23-16.]

Part 1 — Income Tax

Division 1 — Liability for Tax

Liability for tax

2 (1) An income tax must be paid as required in this Act for each taxation year by every individual

(a) who was resident in British Columbia on the last day of the taxation year, or

(b) who, not being resident in British Columbia on the last day of the taxation year, had income earned in the taxation year in British Columbia as defined in section 4 (1).

(2) An income tax must be paid as required in this Act for each taxation year by every corporation that maintained a permanent establishment in British Columbia at any time in the year.

Repealed

3 [Repealed 2000-15-3.]

Division 2 — Individual Income Tax

Definitions

4 (1) In this Division:

"appropriate percentage" for a taxation year means the lowest percentage specified in section 4.1 (1) that is applicable in determining tax payable under this Act for the year;

"income earned in the taxation year in British Columbia" means the income earned in the taxation year in British Columbia as determined in accordance with federal regulations made for purposes of the definition of "income earned in the year in a province" in section 120 (4) of the federal Act;

"income earned in the taxation year outside British Columbia" means income for the year minus income earned in the taxation year in British Columbia;

"income for the year" means,

(a) in the case of an individual to whom section 114 of the federal Act applies who was resident in Canada during part only of the year, the individual's income for the year as defined in section 120 (3) (a) of the federal Act,

(b) in the case of an individual who was not resident in Canada at any time in the year, the individual's income for the year as defined in section 120 (3) (b) of the federal Act,

(c) in the case of an individual who is a specified individual in relation to the year, the individual's income for the year as defined in section 120 (3) (c) of the federal Act, and

(d) in the case of any other individual, the individual's income for the year as determined in accordance with and for the purposes of the federal Act;

"taxable income earned in Canada" has the same meaning as in the federal Act.

(2) [Repealed 2003-23-18.]

Amount of tax payable

4.1 (1) Subject to subsections (2), (3) and (5) to (7) of this section and to sections 4.52 and 4.8 to 4.84, the tax payable under this Act by an individual on the individual's taxable income for the 2008 and subsequent taxation years is as follows:

(a) if the taxable income does not exceed $30 004, 5.24% of the taxable income;

(b) if the taxable income exceeds $30 004 and does not exceed $60 009,

(i) the highest amount that might be determined for an individual under paragraph (a) of this subsection,

(ii) 7.98% of the taxable income that exceeds $30 004 and does not exceed $60 009;

(c) if the taxable income exceeds $60 009 and does not exceed $70 000,

(i) the highest amount that might be determined for an individual under paragraph (b) of this subsection,

(ii) 10.5% of the taxable income that exceeds $60 009 and does not exceed $70 000;

(d) if the taxable income exceeds $70 000 and does not exceed $85 000,

(i) the highest amount that might be determined for an individual under paragraph (c) of this subsection,

(ii) 12.29% of the taxable income that exceeds $70 000 and does not exceed $85 000;

(e) if the taxable income exceeds $85 000,

(i) the highest amount that might be determined for an individual under paragraph (d) of this subsection,

(ii) 14.7% of the taxable income that exceeds $85 000.

(2) For the purposes of subsection (1) (b) (i), (c) (i), (d) (i) and (e) (i), the highest amount that might be determined for an individual under subsection (1) (a), (b), (c) or (d), as the case may be, must be rounded to the nearest multiple of one dollar or, if the highest amount is equidistant from 2 such consecutive multiples, to the higher multiple.

(3) Subject to subsections (4) to (7) of this section and to sections 4.52 and 4.8 to 4.84, if the individual is an inter vivos trust, as defined in section 108 (1) of the federal Act, the tax payable under this Act by the trust on its taxable income for a taxation year is the amount determined by the formula

H x I

H is the highest percentage specified in subsection (1) of this section that applies in determining tax that might be payable by an individual under this Act for the year, and

I is the taxable income of the inter vivos trust for the year.

(4) Subsection (3) of this section does not apply to an inter vivos trust exempted under section 122 (2) of the federal Act from the application of section 122 (1) of that Act.

(5) Subject to section 4.85 (1), if the individual was resident in British Columbia on the last day of the taxation year and had income earned in the taxation year outside British Columbia, the tax payable under this Act is the amount determined by the formula

A x	(B – C)

	B

A is the amount determined for the individual under

(a) subsections (1) and (2) of this section, if the individual is not an inter vivos trust to which subsection (3) applies, or

(b) subsection (3), if the individual is an inter vivos trust to which subsection (3) applies,

B is the individual's income for the year, and

C is the individual's income earned in the taxation year outside British Columbia.

(6) Subject to section 4.85 (2), if the individual was not resident in British Columbia on the last day of the taxation year but had income earned in the taxation year in British Columbia, the tax payable under this Act is the amount determined by the formula

A x	B

	C

A is the amount determined for the individual under

(a) subsections (1) and (2) of this section, if the individual is not an inter vivos trust to which subsection (3) applies, or

(b) subsection (3), if the individual is an inter vivos trust to which subsection (3) applies,

B is the individual's income earned in the taxation year in British Columbia, and

C is the individual's income for the year.

(7) For the purposes of applying subsections (1) and (3) of this section to an individual who was not resident in Canada at any time in the taxation year, the phrase "taxable income" in subsections (1) and (3) must be read as "taxable income earned in Canada".

Deductions

4.2 (1) The amounts that, in computing an individual's tax, may be deducted under sections 4.3, 4.31 to 4.65, 4.67, 4.69 and 4.7 may be deducted only in the order indicated in section 4.79 (1) and, subject to section 4.84 (3) (b), only from the amount of tax payable under section 4.1.

(2) The amounts that, in computing an individual's tax, may be deducted under sections 4.68 and 4.71 may be deducted only in the order indicated in section 4.79 (2) and, subject to section 4.84 (3) (c), only from

(a) the amount of tax payable under sections 4.8 to 4.83,

(b) the amount of tax payable under section 4.1 minus any amounts deducted under the provisions referred to in subsection (1) of this section.

(3) The amounts that, in computing an individual's tax, may be deducted under sections 4.301, 4.72, 4.721, 13.1, 19.1, 20 and 21 may be deducted only in the order indicated in section 4.79 (3) and only from

(a) [Repealed 2000-15-34.]

(b) the amount of tax payable under sections 4.1 and 4.8 to 4.83 minus any amounts deducted under the provisions referred to in subsections (1) and (2) of this section.

Personal credits

4.3 (1) For the purpose of computing the tax payable under this Act for a taxation year by an individual, there may be deducted an amount determined by the formula

A x B

A is the appropriate percentage for the year,

B is the total of

(a) if the individual is entitled to a deduction under section 118 (1) (a) of the federal Act [spousal credit] for the year, an amount equal to the total of

(i) $8 000, and

(ii) an amount determined by the formula

$6 850 – (C – $685)

C is the greater of $685 and the income for the year of the individual's spouse or common-law partner or, if the individual and the individual's spouse or common-law partner are living separate and apart at the end of that year by reason of a breakdown of their marriage or common-law partnership, the spouse's or common-law partner's income while married or in a common-law partnership and not so separated,

(b) if the individual is entitled to a deduction under section 118 (1) (b) of the federal Act [equivalent to spousal credit] for the year by reason of a dependent person referred to in that section, an amount equal to the total of

(i) $8 000, and

(ii) an amount determined by the formula

$6 850 – (D – $685)

D is the greater of $685 and the dependent person's income for the year,

(c) if the individual is entitled to a deduction under section 118 (1) (c) of the federal Act [basic personal credit – single status], $8 000,

(d) if the individual is entitled to a deduction under section 118 (1) (c.1) of the federal Act [in-home care of relative credit] by reason of a particular person described in that section, the amount determined by the formula

$15 670 – D.1

D.1 is the greater of $12 096 and the particular person's income for the year,

(e) if the individual is entitled to a deduction under section 118 (1) (d) of the federal Act [infirm dependant credit] by reason of a dependant described in that section, the amount determined by the formula

$9 267 – E

E is the greater of $5 693 and the dependant's income for the year, and

(f) if the individual is entitled to a deduction in respect of a person under section 118 (1) (b) of the federal Act and would also be entitled, but for section 118 (4) (c) of that Act, to a deduction because of section 118 (1) (c.1) [in-home care of relative credit] or (d) [infirm dependant credit] of that Act in respect of the person, the amount by which the amount determined under paragraph (d) or (e) of this subsection, as the case may be, exceeds the amount determined under paragraph (b) of this subsection in respect of the person.

(2) Section 118 (4) to (6) of the federal Act applies for the purposes of this section.

BC tax reduction credit

4.301 For the purpose of computing the tax payable under this Act for a taxation year by an individual, there may be deducted the amount determined by the formula

A – B

B is 3.2% of the amount, if any, by which the individual's income for the year exceeds $16 000.

Age credit

4.31 For the purpose of computing the tax payable under this Act for a taxation year by an individual who is entitled to a deduction under section 118 (2) of the federal Act for the year, there may be deducted the amount determined by the formula

A x ($3 531 – B)

A is the appropriate percentage for the year, and

B is 15% of the amount, if any, by which the individual's income for the year would exceed $26 284 if no amount were included in respect of a gain from a disposition of property to which section 79 of the federal Act applies in computing that income.

Pension credit

4.32 (1) For the purpose of computing the tax payable under this Act for a taxation year by an individual who was resident in British Columbia on the last day of the taxation year and who is entitled to a deduction under section 118 (3) of the federal Act for the year, there may be deducted the amount determined by the formula

A x B

A is the appropriate percentage for the year, and

B is the smaller of

(a) $1 000, and

(b) the amount that is the individual's eligible pension income used in computing the deduction under section 118 (3) of the federal Act for the taxation year.

(2) [Repealed 2008-11-10.]

Adoption expense credit

4.33 For the purpose of computing the tax payable under this Act for a taxation year by an individual who was resident in British Columbia on the last day of the taxation year and who is entitled to a deduction under section 118.01 of the federal Act for the year, there may be deducted the amount determined by the formula

A x		B

		C

A is the amount deducted by the individual under section 118.01 of the federal Act for the year,

B is the appropriate percentage for the year, and

C is the appropriate percentage for the year as defined in section 248 (1) of the federal Act.

Charitable and other gifts

4.4 For the purpose of computing the tax payable under this Act for a taxation year by an individual who is entitled to a deduction under section 118.1 (3) of the federal Act for the year, there may be deducted the amount the individual claims not exceeding the amount determined by the formula

(A x B) + [C x (D – B)]

A is the appropriate percentage for the year,

B is the smaller of

(b) the amount that, in computing the individual's deduction under section 118.1 (3) of the federal Act for the year, is used in the formula in that section for the individual's total gifts less any portion of that amount used in calculating a deduction claimed for a preceding taxation year by the individual or the individual's spouse or common-law partner under this section or under a provision of an income tax statute of an agreeing or non-agreeing province that is similar to this section,

C is the highest percentage specified in section 4.1 of this Act that applies in determining tax that might be payable under this Act for the year, and

D is the amount that, in computing the individual’s deduction under section 118.1 (3) of the federal Act for the year, is used in the formula in that section for the individual’s total gifts less any portion of that amount used in calculating a deduction claimed for a preceding taxation year by the individual or the individual’s spouse or common-law partner under this section or under a provision of an income tax statute of an agreeing or non-agreeing province that is similar to this section.

Medical expense credit

4.5 (1) For the purpose of computing the tax payable under this Act for a taxation year by an individual who is entitled to a deduction under section 118.2 (1) of the federal Act for the year, there may be deducted an amount determined by the formula

A x [(B – C) + D]

A is the appropriate percentage for the year,

B is the amount used in the formula in section 118.2 (1) of the federal Act for B in computing the individual's deduction under that section for the year,

C is the smaller of $1 772 and 3% of the individual's income for the year, and

D is the total of all amounts each of which is, in respect of a dependant of the individual, the smaller of $10 000 and the amount determined by the formula

E – F

E is the amount used in the formula in section 118.2 (1) of the federal Act for E in computing the individual’s deduction under that section for the year, and

F is the smaller of $1 772 and 3% of the dependant’s income for the year.

(2) The same 24 or 12 month period that is used in the formula in section 118.2 (1) of the federal Act for B in computing the individual's deduction under that section for the year must be used in computing the individual's deduction under this section for the year.

(3) In this section, "dependant", in respect of the dependant of an individual for a taxation year, has the same meaning as in section 118 (6) of the federal Act, but does not include a child of the individual who has not attained the age of 18 years before the end of the taxation year.

Credit for mental or physical impairment

4.51 (1) For the purpose of computing the tax payable under this Act for a taxation year by an individual who is entitled to a deduction under section 118.3 (1) of the federal Act for the year, there may be deducted an amount determined by the formula

A x $6 126

A is the appropriate percentage for the year.

(2) For the purpose of computing the tax payable under this Act for a taxation year by an individual who is entitled to a deduction under section 118.3 (2) of the federal Act for the year in respect of a person referred to in that section, there may be deducted the amount, if any, by which

(a) the amount deductible under subsection (1) of this section in computing that person's tax payable under this Act for the year or that would be so deductible if the person were liable under section 2 to pay tax for the year,

(b) the amount that would be the person's tax payable under this Act for the year if the person were liable under section 2 to pay tax for the year and if the only amounts deductible were the amounts under sections 4.3 [personal credits], 4.31 [age credit], 4.32 [pension credit] and 4.64 [credit for EI premium and CPP contribution].

(3) For the purpose of computing the tax payable under this Act for a taxation year by an individual who has not reached 18 years of age before the end of the taxation year and who is entitled to a deduction under section 118.3 (1) of the federal Act for the year, there may be deducted an amount determined by the formula

A x ($3 574 – B)

A is the appropriate percentage for the year, and

B is the smaller of

(a) $3 574, and

(b) the amount, if any, by which the total of all amounts, each of which is an amount paid in the year for the care or supervision of the individual and included in computing the deductions under sections 63, 64 or 118.2 of the federal Act, exceeds $2 075.

(4) For the purpose of computing the tax payable under this Act for a taxation year by an individual who is entitled to a deduction under section 118.3 (2) of the federal Act for the year in respect of a person referred to in that section, there may be deducted an amount determined by the formula

D – (T – U)

D is the amount deductible under subsection (3) of this section in computing that person's tax payable under this Act for the year or that would be so deductible if the person were liable under section 2 to pay tax for the year,

T is the amount that would be the person's tax payable under this Act for the year if the person were liable under section 2 to pay tax for the year and if the only amounts deductible were the amounts under sections 4.3 [personal credits], 4.31 [age credit], 4.32 [pension credit] and 4.64 [credit for EI premium and CPP contribution], and

U is the amount by which the amount deductible under subsection (1) of this section in computing the person's tax payable under this Act for the year, or that would be so deductible if the person were liable under section 2 to pay tax for the year, exceeds any amount deducted for the year in respect of the person under subsection (2).

(5) [Repealed 2002-19-7.]

(6) Section 118.3 (3) of the federal Act applies for the purposes of subsections (2) and (4) of this section.

Indexing

4.52 (1) In this section, "relevant provision" means the following:

(a) section 4.1 (1) [amount of tax payable];

(b) section 4.3 (1) [personal credits];

(b.1) except in respect of the 2005 taxation year, section 4.301 [BC tax reduction credit];

(c) section 4.31 [age credit];

(d) except in respect of the 2004 taxation year, the descriptions of C and F in section 4.5 (1) [medical expense credit];

(e) section 4.51 [credit for mental or physical impairment];

(f) except in respect of the 2007 taxation year, the description of deduction in section 8.1 (3) [low income climate action tax credit].

(2) Subject to subsection (4.1), for the purpose of computing the tax payable by an individual for a taxation year, other than the 2001 taxation year, each amount expressed in dollars in a relevant provision is to be adjusted so that the amount to be used under the relevant provision for the year is the total of

(a) the amount that would, but for subsection (5) of this section, be the amount to be used under the relevant provision for the immediately preceding taxation year, and

(b) the product obtained by multiplying

(i) the amount referred to in paragraph (a) of this subsection

(ii) the amount, adjusted in the manner that may be prescribed and rounded to the nearest one-thousandth, or, if the result obtained is equidistant from 2 consecutive one-thousandths, to the higher one-thousandth, that is determined by the formula

A	– 1

B

A is the Consumer Price Index for British Columbia for the 12-month period that ended on the last September 30 before that year, and

B is the Consumer Price Index for British Columbia for the 12-month period immediately preceding the period mentioned in the description of A.

(3) In subsection (4), "specified amount" means

(a) the amount of $30 004 referred to in section 4.1 (1) (a) and (b),

(b) the amount of $60 009 referred to in section 4.1 (1) (b) and (c),

(c) the amount of $14 047 referred to in section 4.3 (1) (d),

(d) the amount of $11 661 referred to in section 4.3 (1) (d),

(e) the amount of $2 386 referred to in section 4.3 (1) (e),

(f) the amount of $3 531 referred to in section 4.31,

(g) the amount of $26 284 referred to in section 4.31,

(h) the amount of $1 637 referred to in section 4.5,

(i) the amount of $4 293 referred to in section 4.51 (1),

(j) the amount of $2 941 referred to in section 4.51 (3), and

(k) the amount of $2 000 referred to in section 4.51 (3).

(4) For the purpose of computing the tax payable by an individual for the 2001 taxation year, each specified amount is to be adjusted so that the amount to be used for the year is the specified amount plus the product obtained by multiplying

(a) the specified amount

(b) the amount, adjusted and rounded as described in subsection (2) (b) (ii), that is determined by applying the formula in that subsection.

(4.1) For the purpose of computing the tax payable by an individual for the 2002 taxation year, each amount expressed in dollars in a relevant provision is to be adjusted in accordance with subsection (2), except the following:

(a) the amount of $15 670 referred to in section 4.3 (1) (d);

(b) the amount of $12 096 referred to in section 4.3 (1) (d);

(c) the amount of $9 267 referred to in section 4.3 (1) (e);

(d) the amount of $5 693 referred to in section 4.3 (1) (e);

(e) the amount of $6 126 referred to in section 4.51 (1);

(f) the amount of $3 574 in both places where it is referred to in section 4.51 (3);

(g) the amount of $2 075 referred to in section 4.51 (3).

(5) If an amount to which subsection (2) or (4) applies is not a multiple of one dollar when adjusted as provided in this section, it must be rounded to the nearest multiple of one dollar or, if it is equidistant from 2 such consecutive multiples, to the higher multiple.

(6) If the amount determined by applying the formula in subsection (2) (b) (ii) would, but for this subsection, be a negative amount, that amount is deemed to be nil.

(7) In this section, the Consumer Price Index for British Columbia for any 12 month period is the result arrived at by

(a) aggregating the Consumer Price Index for British Columbia, as published by Statistics Canada under the authority of the Statistics Act (Canada), adjusted in the manner that may be prescribed, for each month in that period,

(b) dividing the aggregate obtained under paragraph (a) by 12, and

(c) rounding the result obtained under paragraph (b) to the nearest one-thousandth or, if the result obtained is equidistant from 2 consecutive one-thousandths, to the higher one thousandth.

(8) The adjustment under this section of an amount expressed in dollars in section 4.1 (1) is not affected by the following:

(a) a change to the taxation years specified or referred to in section 4.1 (1);

(b) a change to a percentage specified in section 4.1 (1).

Tuition credit

4.6 Section 118.5 of the federal Act applies for the purposes of this Act except that, in addition to any other necessary modifications required for this Act, a reference in that section to the appropriate percentage for the year is to be read as the appropriate percentage for the year as defined in section 4 of this Act.

Education tax credit

4.61 (1) For the purpose of computing the tax payable under this Act for a taxation year by an individual who is entitled to a deduction under section 118.6 (2) of the federal Act for the year, there may be deducted an amount determined by the formula

A x B

A is the appropriate percentage for the year, and

B is the total of the products obtained when

(a) $200 is multiplied by the number of months in the year during which the individual is enrolled in a qualifying educational program as a full-time student at a designated educational institution, and

(b) $60 is multiplied by the number of months in the year, other than the months described in paragraph (a) of this subsection, each of which is a month during which the individual is enrolled at a designated educational institution in a specified educational program that provides that each student in the program spend not less than 12 hours in the month on courses in the program.

(2) Section 118.6 (1) and (3) of the federal Act apply for the purposes of this section.

Unused tuition and education tax credits

4.62 (1) For the purpose of computing the tax payable under this Act for a taxation year by an individual, there may be deducted the smaller of

(a) the individual's unused tuition and education tax credits at the end of the preceding taxation year, and

(b) the amount that would be the individual’s tax payable under this Act for the year if the only amounts deductible were the amounts under the following sections:

(i) section 4.3 [personal credits];

(ii) section 4.31 [age credit];

(iii) section 4.32 [pension credit];

(iii.1) section 4.33 [adoption expense credit];

(iv) section 4.51 [credit for mental or physical impairment];

(v) section 4.64 [credit for EI premium and CPP contribution].

(2) Subject to subsections (3) and (4), an individual's unused tuition and education tax credits at the end of a taxation year is the amount determined by the formula

A + (B – C) – (D + E)

A is the individual's unused tuition and education tax credits at the end of the preceding taxation year,

B is the total of all amounts each of which may be deducted under section 4.6 [tuition credit] or 4.61 [education tax credit] in computing the individual's tax payable under this Act for the year,

C is the smaller of the value of "B" and the amount that would be the individual’s tax payable under this Act for the year if the only amounts deductible were the amounts under the following sections:

(a) section 4.3 [personal credits];

(b) section 4.31 [age credit];

(c) section 4.32 [pension credit];

(c.1) section 4.33 [adoption expense credit];

(d) section 4.51 [credit for mental or physical impairment];

(e) section 4.64 [credit for EI premium and CPP contribution],

D is the amount that the individual may deduct under subsection (1) for the year, and

E is the tuition and education tax credits transferred for the year by the individual to the individual's spouse, common-law partner, parent or grandparent.

(3) For the purpose of determining the amount that may be deducted under subsection (1) in computing the tax payable for a taxation year that begins after 2006 by an individual who was not resident in British Columbia on the last day of the preceding taxation year, the individual's unused tuition and education tax credits at the end of that year are deemed to equal the amount that would be the individual's unused tuition and education tax credits at the end of that year under section 118.61 of the federal Act if the appropriate percentage applied under sections 118.5 and 118.6 of that Act in computing the individual's tuition and education tax credits had, at all material times, been the appropriate percentage as defined in section 4 of this Act instead of the appropriate percentage as defined in the federal Act.

(4) For the purpose of determining the amount that may be deducted under subsection (1) in computing the tax payable for a taxation year by an individual who was resident in British Columbia on the last day of the preceding taxation year, if the appropriate percentage for the taxation year is different from the appropriate percentage for the preceding taxation year, the individual’s unused tuition and education tax credits at the end of the preceding taxation year are deemed to be the amount determined by the following formula:

amount =		A		x C

		B

A = the appropriate percentage for the taxation year;

B = the appropriate percentage for the preceding taxation year;

C = the amount of the individual’s unused tuition and education tax credits at the end of the preceding taxation year.

(5) [Repealed 2007-2-8.]

Credit for interest on student loan

4.63 For the purpose of computing the tax payable under this Act for a taxation year by an individual who is entitled to a deduction under section 118.62 of the federal Act for the year, there may be deducted an amount determined by the formula

A x B

A is the appropriate percentage for the year, and

B is the amount used in the formula in section 118.62 of the federal Act in computing the individual's deduction under that section for the year.

Credit for EI premium and CPP contribution

4.64 Section 118.7 of the federal Act applies for the purposes of this Act except that a reference in that section to the appropriate percentage for the year is to be read as the appropriate percentage for the year as defined in section 4 (1) of this Act.

Transfer of unused credits to spouse or common-law partner

4.65 For the purpose of computing the tax payable under this Act for a taxation year by an individual who is entitled to a deduction under section 118.8 of the federal Act for the year, there may be deducted an amount determined by the formula

A + B – C

A is the tuition and education tax credits transferred for the year by the individual's spouse or common-law partner to the individual,

B is the total of all amounts each of which is deductible under section 4.31 [age credit], 4.32 [pension credit], or 4.51 [credit for mental or physical impairment] in computing the tax payable by the spouse or common-law partner under this Act for the year or that would be so deductible if the spouse or common-law partner were liable under section 2 to pay tax for the year, and

C is the amount, if any, by which

(a) the amount that would be the tax payable if the spouse or common-law partner were liable for tax under section 2 for the year and if the only amounts deductible were the amounts under sections 4.3 (1) (c) [basic personal credit – single status], 4.62 [unused tuition and education tax credits] and 4.64 [credit for EI premium and CPP contribution]

(b) the smaller of

(i) the total of all amounts that may be deducted under section 4.6 [tuition credit] or 4.61 [education tax credit] in computing the tax payable by the spouse or common-law partner under this Act for the year or that would be so deductible if the spouse or common-law partner were liable under section 2 to pay tax for the year, and

(ii) the amount that would be the tax payable by the spouse or common-law partner under this Act for the year if the spouse or common-law partner were liable under section 2 to pay tax for the year and if the only amounts deductible were the amounts under sections 4.3 [personal credits] 4.31 [age credit], 4.32 [pension credit], 4.33 [adoption expense credit], 4.51 [credit for mental or physical impairment], 4.62 [unused tuition and education tax credits] and 4.64 [credit for EI premium and CPP contribution].

Tuition and education credits transferred

4.66 In sections 4.65 [transfer of unused credits to spouse or common-law partner] and 4.67 [transfer of unused credits to parent or grandparent], the tuition and education tax credits transferred for a taxation year by a person to an individual is the smaller of

(a) the amount determined by the formula

A – B

A is the smaller of

(i) the total of all amounts that may be deducted under section 4.6 [tuition credit] or 4.61 [education tax credit] in computing the person's tax payable under this Act for the year or that would be so deductible if the person were liable under section 2 to pay tax for the year, and

(ii) the amount obtained by multiplying $5 000 by the appropriate percentage, and

B is the amount that would be the person's tax payable under this Act for the year if the person were liable under section 2 to pay tax for the year and if the only amounts deductible were the amounts under sections 4.3 [personal credits], 4.31 [age credit], 4.32 [pension credit], 4.33 [adoption expense credit], 4.51 [credit for mental or physical impairment], 4.62 [unused tuition and education tax credits] and 4.64 [credit for EI premium and CPP contribution], and

(b) the amount for the year that the person designates in writing for the purposes of section 4.65 [transfer of unused credits to spouse or common-law partner] or 4.67 [transfer of unused credits to parent or grandparent].

Transfer of unused credits to parent or grandparent

4.67 (1) This section applies if

(a) for a taxation year a parent or grandparent of an individual is the only person designated in writing by the individual for the year for the purpose of this section, and

(b) no other person is designated for the year for the purpose of section 118.9 of the federal Act or a provision of an income tax statute of an agreeing or non-agreeing province that is similar to this section.

(2) In the circumstances described in subsection (1), there may be deducted in computing the tax payable under this Act for the taxation year by the individual's parent or grandparent, as the case may be, the tuition and education tax credits transferred for the year by the individual to the parent or grandparent, as the case may be.

(3) No deduction may be made under this section in computing the tax payable by a parent or grandparent of an individual for a taxation year if the individual's spouse or common-law partner deducts an amount for the year in respect of the individual under

(a) section 4.3 [personal credits] or 4.65 [transfer of unused credits to spouse or common-law partner], or

(b) a provision of an income tax statute of an agreeing or non-agreeing province that is similar to section 4.3 or 4.65 of this Act.

Minimum tax credit

4.68 (1) For the purpose of computing the tax payable under this Act for a taxation year by an individual who is entitled to a deduction under section 120.2 of the federal Act for the year, there may be deducted the amount determined by the formula

A x	B

	C

A is the amount deducted by the individual under section 120.2 of the federal Act for the year,

B is the appropriate percentage for the year, and

C is the appropriate percentage for the year as defined in section 248 (1) of the federal Act.

(2) For the purposes of subsection (1) of this section, the result obtained by dividing B, as defined by that subsection, by C, as defined by that subsection, is to be rounded to the nearest one-thousandth or, if the result obtained by that division is equidistant from 2 consecutive one-thousandths, to the higher one-thousandth.

Dividend tax credit

4.69 For the purpose of computing the tax payable under this Act for a taxation year by an individual who was resident in British Columbia on the last day of the taxation year, there may be deducted the total of the following:

(a) 25.5% of any amount that is required by section 82 (1) (b) (i) of the federal Act to be included in computing the individual's income for the year under that Act;

(b) 38 2/3% of any amount that is required by section 82 (1) (b) (ii) of the federal Act to be included in computing the individual’s income for the year under that Act.

Overseas employment tax credit

4.7 For the purpose of computing the tax payable under this Act for a taxation year by an individual who was resident in British Columbia on the last day of the taxation year and who is entitled to a deduction under section 122.3 of the federal Act for the year, there may be deducted the amount determined by the formula

A x	B

	C

A is the amount deducted by the individual under section 122.3 of the federal Act for the year,

B is the amount that, but for this section 4.7 and sections 4.68 [minimum tax credit], 4.71 [foreign tax credit], 4.721 [BC mining flow-through share tax credit], 4.8 [minimum tax], 4.81 [CPP/QPP disability benefits for previous years], 4.82 [qualifying retroactive lump sum pension payments], 4.83 [lump sum pension payment], 4.84 [tax on split income], 13.1 [net employee investment tax credit], 19.1 [logging tax deduction], 20 [political contributions] and 21 [small business venture capital tax credit], would be the individual’s tax payable under this Act for the year, and

C is the amount that, but for sections 120, 120.2, 120.3, 120.31, 120.4 (2), 122.3, 126, 127, 127.4 and 127.5 of the federal Act and section 40 of the Income Tax Application Rules (Canada), would be the individual’s tax payable under Part I of the federal Act for the year.

Foreign tax credit

4.71 (1) For the purpose of computing the tax payable under this Act for a taxation year by an individual, there may be deducted the aggregate of the amounts determined under subsection (2) if

(a) the individual resided in British Columbia on the last day of the taxation year, and

(b) the individual had income for the year that included income earned in a country other than Canada in respect of which non-business-income tax was paid by the individual to the government of a country other than Canada.

(c) [Repealed 2007-2-13.]

(2) The amount deductible under subsection (1), in respect of each country other than Canada, is the smaller of

(a) the amount, if any, by which any non-business-income tax paid by the individual for the taxation year to the government of the other country exceeds the amount deductible by the individual for that year under section 126 (1) of the federal Act, and

(b) that proportion of the tax otherwise payable under this Act for that taxation year that

(i) the amount, if any, by which the total of the individual's qualifying incomes exceeds the total of the individual's qualifying losses

(A) for that year, if section 114 of the federal Act does not apply, or

(B) for the part of the year throughout which the individual was resident in Canada, if section 114 of that Act applies,

from sources in the other country, on the assumption that

(C) no businesses were carried on by the individual in that country,

(D) no amount was deducted under section 91 (5) of the federal Act in computing the individual's income for the year, and

(E) the individual's income from employment in that country for the year was not from a source in that country to the extent of the smaller of the amounts determined in respect of the individual's income under paragraphs (c) and (d) of section 122.3 (1) of the federal Act,

(ii) the individual's income earned in British Columbia

(A) in the year, if section 114 of the federal Act does not apply, or

(B) in the part of the year throughout which the individual was resident in Canada, if section 114 of that Act applies,

minus any amounts deducted by the individual under section 110.6 or 111 (1) (b) of the federal Act or deductible by the individual under section 110 (1) (d) to (d.3), (f), (g) or (j) of the federal Act for the year or in respect of the part of the year referred to in clause (B) of this subparagraph, as the case may be.

(2.1) In subsection (2) (b), "tax otherwise payable under this Act", in relation to an individual for a taxation year, does not include the amount of tax payable under section 4.8 [minimum tax] by the individual for the taxation year.

(3) For the purposes of subsection (2) (b) (ii) (A) of this section, if section 114 of the federal Act does not apply to the individual in respect of the taxation year, the individual's income is to be computed without reference to section 20 (1) (ww) of the federal Act.

(4) [Repealed 2003-23-20.]

(5) Under this section, the non-business-income tax paid by a taxpayer to the government of a country other than Canada in respect of the taxpayer's income for a year is the non-business-income tax paid by the taxpayer to the government of that country in respect of that year as determined under the definition of "non-business-income tax" in section 126 (7) of the federal Act.

(6) For the purposes of this section,

(a) the government of a country other than Canada includes the government of a state, province or other political subdivision of that country,

(b) if a taxpayer's income for a taxation year is in whole or in part from sources in more than one country other than Canada, subsection (2) must be read as providing for separate deductions in respect of each of the countries other than Canada, and

(c) if any income from a source in a particular country would be tax-exempt income but for the fact that a portion of the income is subject to an income or profits tax imposed by the government of a country other than Canada, the portion is deemed to be income from a separate source in the particular country.

(7) In this section, "qualifying incomes", "qualifying losses" and "tax-exempt income" have the same meaning as in section 126 (7) of the federal Act.

Supplementary credit for 2000 taxation year

4.72 For the purpose of computing the tax payable under this Act for the 2000 taxation year by an individual who is resident in British Columbia on the last day of that taxation year, there may be deducted the amount determined by the formula

A x B

A is the appropriate percentage for the year, and

(a) $600, if the individual deducts an amount in respect of a dependent spouse or other dependant under section 118 (1) (a) or (b) of the federal Act, or

(b) $300, in any other case.

BC mining flow-through share tax credit

4.721 (1) In this section:

"BC flow-through mining expenditure", in relation to an individual for a taxation year, means an expense that meets the following criteria:

(a) the expense is deemed by one of the following sections of the federal Act to be incurred by the individual in the year:

(i) section 66 (12.61) of the federal Act;

(ii) section 66 (18) of the federal Act as a consequence of the application of section 66 (12.61) of the federal Act to a partnership, referred to in paragraph (f) of this definition, of which the individual is a member;

(b) the expense is an expense described in paragraph (f) of the definition of "Canadian exploration expense" in section 66.1 (6) of the federal Act;

(c) the expense is not an expense in respect of the following:

(i) trenching, if one of the purposes of the trenching is to carry out preliminary sampling, other than specified sampling;

(ii) digging test pits, other than digging test pits for the purpose of carrying out specified sampling;

(iii) preliminary sampling, other than specified sampling;

(d) the expense is an expense incurred by a corporation after July 30, 2001 and before 2009 in conducting mining exploration activity from or above the surface of the earth for the purpose of determining the existence, location, extent or quality of a mineral resource described in paragraph (a) or (d) of the definition of “mineral resource” in section 248 (1) of the federal Act;

(e) the expense is incurred in respect of mining exploration activity all or substantially all of which is conducted in British Columbia for the purpose of determining the existence, location, extent or quality of a mineral resource in British Columbia;

(f) the expense is an expense in respect of which an amount is renounced in accordance with section 66 (12.6) of the federal Act by the corporation to the individual, or to a partnership of which the individual is a member, under an agreement described in that section and made after July 30, 2001;

(g) the expense is not an expense that was renounced under section 66 (12.6) of the federal Act to the corporation, or to a partnership of which the corporation is a member, unless that renunciation was under an agreement described in that section and made after July 30, 2001;

"individual" has the same meaning as in section 1 (1) but does not include a trust or estate;

"mineral resource" means a mineral resource referred to in paragraph (a) of the definition of "flow-through mining expenditure" in section 127 (9) of the federal Act.

"specified sampling" has the same meaning as in section 127 (9) of the federal Act;

(1.1) For the purposes of paragraph (d) of the definition of "BC flow-through mining expenditure" and for greater certainty, an expense incurred by a corporation before 2009 includes an expense that is deemed by section 66 (12.66) of the federal Act to be incurred before 2009.

(2) Subject to subsections (4) and (5), an individual may deduct from tax otherwise payable under this Act for a taxation year ending after 1997 an amount not exceeding the smaller of

(a) the BC mining flow-through share tax credit of the individual at the end of the taxation year calculated in accordance with subsection (3), and

(b) the tax otherwise payable by the individual under this Act for the taxation year.

(3) The BC mining flow-through share tax credit of an individual at the end of a taxation year is the amount, if any, by which the total of

(a) an amount equal to 20% of the total of all amounts each of which is a BC flow-through mining expenditure of the individual for the year, and

(b) an amount equal to 20% of the total of all amounts each of which is a BC flow-through mining expenditure of the individual for the 10 taxation years immediately preceding, or the 3 taxation years immediately following, the taxation year,

(c) the total of all amounts each of which is an amount deducted under subsection (2) from the tax otherwise payable under this Act by the individual for a preceding taxation year that is in respect of BC flow-through mining expenditures of the individual for the taxation year or any of the 10 taxation years immediately preceding, or the 2 years immediately following, the taxation year.

(4) An individual who wishes to claim a tax credit under this section for a taxation year must file, with the return of income filed by the individual under section 29 for the taxation year, an application for the tax credit in the form, and containing the information, required by the Commissioner of Income Tax.

(5) In computing a tax credit under this section, an individual is not entitled to include an amount in respect of a BC flow-through mining expenditure of the individual for a taxation year unless the individual files the form containing the information required by subsection (4) in respect of that amount on or before the day that is one year after the individual's filing-due date for the taxation year that includes the effective date of a renunciation made in accordance with section 66 (12.6) of the federal Act in respect of that expenditure.

Restrictions on credits: trusts

4.73 No deduction may be made under section 4.3 [personal credits], 4.301 [BC tax reduction credit], 4.31 [age credit], 4.32 [pension credit] or 4.72 [supplementary credit for 2000 taxation year] in computing the tax payable by a trust for a taxation year.

Restrictions on credits: year of bankruptcy

4.74 Despite sections 4.3 to 4.65 and 4.67, for the purpose of computing an individual's tax payable under this Act for a taxation year that ends in a calendar year in which the individual becomes bankrupt, the individual is allowed only

(a) the deductions the individual is entitled to under sections 4.32 [pension credit], 4.33 [adoption expense credit], 4.4 [charitable and other gifts], 4.5 [medical expense credit], 4.6 [tuition credit], 4.61 [education tax credit], 4.63 [credit for interest on student loan] and 4.64 [credit for EI premium and CPP contribution] that can reasonably be considered wholly applicable to the taxation year, and

(b) the part of the deductions the individual is entitled to under sections 4.3 [personal credits], 4.301 [BC tax reduction credit], 4.31 [age credit], 4.51 [credit for mental or physical impairment], 4.65 [transfer of unused credits to spouse or common-law partner], 4.67 [transfer of unused credits to parent or grandparent] and 4.72 [supplementary credit for 2000 taxation year] that can reasonably be considered applicable to the taxation year,

except that the total of the amounts so deductible for all taxation years of the individual in the calendar year under any of those provisions must not exceed the amount that would have been deductible under that provision in respect of the calendar year had the individual not become bankrupt.

Restrictions on credits: income earned outside BC

4.75 (1) Despite sections 4.3, 4.301, 4.31, 4.4 to 4.65, 4.67 and 4.68, for the purpose of computing tax payable under this Act for a taxation year by an individual who was resident in British Columbia on the last day of the taxation year and had income earned in the year outside British Columbia, the amount that may be deducted under those provisions must not exceed the portion of that amount determined by the formula

A x	(B – C)

	B

A is the total of the amounts the individual may deduct under those sections read without reference to this section,

B is the individual's income for the year, and

C is the individual's income earned in the taxation year outside British Columbia.

(2) Despite sections 4.3, 4.301, 4.31, 4.4 to 4.65, 4.67 and 4.68, for the purpose of computing tax payable under this Act for a taxation year by an individual who was not resident in British Columbia on the last day of the taxation year but had income earned in the year in British Columbia, the amount that may be deducted under those provisions must not exceed the portion of that amount determined by the formula

A x	B

	C

A is the total of the amounts the individual may deduct under those sections,

B is the individual's income earned in the taxation year in British Columbia, and

C is the individual's income for the year.

Restrictions on credits: part-year residents

4.76 (1) Despite sections 4.3 to 4.65 and 4.67 but subject to subsection (2) of this section, if an individual is resident in Canada throughout part of a taxation year and throughout another part of the year is non-resident, for the purpose of computing the individual's tax payable under this Act for the year,

(a) the amount deductible for the year under each provision of those sections in respect of the part of the year that is not included in the period or periods referred to in paragraph (b) must be computed as though that part of the year were the whole taxation year, and

(b) the individual is allowed only

(i) the deductions permitted under sections 4.32 [pension credit], 4.33 [adoption expense credit], 4.4 [charitable and other gifts], 4.5 [medical expense credit], 4.6 [tuition credit], 4.61 [education tax credit], 4.63 [credit for interest on student loan] and 4.64 [credit for EI premium and CPP contribution] that can reasonably be considered wholly applicable, and

(ii) the part of the deductions permitted under sections 4.3 [personal credits], 4.301 [BC tax reduction credit], 4.31 [age credit], 4.51 [credit for mental or physical impairment], 4.65 [transfer of unused credits to spouse or common-law partner] and 4.67 [transfer of unused credits to parent or grandparent] that can reasonably be considered applicable

to the period or periods in the year throughout which the individual was resident in Canada, computed as though that period or those periods were the whole taxation year.

(2) The amount deductible for the year under each provision referred to in subsection (1) (b) (i) and (ii) must not exceed the amount that would have been deductible under that provision had the individual been resident in Canada throughout the year.

Restrictions on credits: non-residents

4.77 The following provisions of this Act do not apply for the purpose of computing the tax payable under this Act for a taxation year by an individual who at no time in the taxation year is resident in Canada unless all or substantially all of the individual's income for the year is included in computing the individual's taxable income earned in Canada for the year:

(a) section 4.3 [personal credits];

(a.1) section 4.301 [BC tax reduction credit];

(b) section 4.31 [age credit];

(c) [Repealed 2004-28-14.]

(d) section 4.5 [medical expense credit];

(e) section 4.51 (2), (4) and (6) [credit for dependant with impairment and partial dependency rules];

(f) section 4.61 [education tax credit];

(g) section 4.65 [transfer of unused credits to spouse or common-law partner];

(h) section 4.67 [transfer of unused credits to parent or grandparent];

(i) section 4.72 [supplementary credit for 2000 taxation year].

Credits in separate returns

4.78 (1) This section applies if

(a) a separate return of income with respect to an individual is filed in accordance with section 70 (2), 104 (23) or 150 (4) of the federal Act for a particular period, and

(b) another return of income with respect to the individual is filed under this Act for a period ending in the calendar year in which the particular period ends.

(2) For the purpose of computing the tax payable under this Act by an individual in a return referred to in subsection (1) (a), the only deductions allowed are those under the following provisions:

(a) section 4.3 [personal credits];

(b) section 4.31 [age credit];

(c) section 4.32 [pension credit];

(c.1) section 4.33 [adoption expense credit];

(d) section 4.4 [charitable and other gifts];

(e) section 4.5 [medical expense credit];

(f) section 4.51 [credit for mental or physical impairment];

(g) section 4.6 [tuition credit];

(h) section 4.61 [education tax credit];

(i) section 4.62 [unused tuition and education tax credits];

(j) section 4.63 [credit for interest on student loan];

(k) section 4.64 [credit for EI premium and CPP contribution];

(l) section 4.67 [transfer of unused credits to parent or grandparent];

(m) section 4.72 [supplementary credit for 2000 taxation year].

(3) The total of all deductions claimed under sections 4.32 to 4.64 and 4.67 of this Act in the returns referred to in subsection (1) (a) and (b) filed in respect of the individual must not exceed the total that could be deducted under those provisions for the year with respect to the individual if no separate returns were filed under sections 70 (2), 104 (23) and 150 (4) of the federal Act.

Order of making deductions

4.79 (1) For the purposes of section 4.2 (1), the following provisions must be applied in the following order:

(a) section 4.3 [personal credits];

(b) section 4.31 [age credit];

(c) section 4.64 [credit for EI premium and CPP contribution];

(d) section 4.32 [pension credit];

(d.1) section 4.33 [adoption expense credit];

(e) section 4.51 [credit for mental or physical impairment];

(f) section 4.62 [unused tuition and education tax credits];

(g) section 4.6 [tuition credit];

(h) section 4.61 [education tax credit];

(i) section 4.67 [transfer of unused credits to parent or grandparent];

(j) section 4.65 [transfer of unused credits to spouse or common-law partner];

(k) section 4.5 [medical expense credit];

(l) section 4.4 [charitable and other gifts];

(m) section 4.63 [credit for interest on student loan];

(n) section 4.69 [dividend tax credit];

(o) section 4.7 [overseas employment tax credit].

(2) For the purposes of section 4.2 (2), the following provisions must be applied in the following order:

(a) section 4.68 [minimum tax credit];

(b) section 4.71 [foreign tax credit].

(3) For the purposes of section 4.2 (3), the following provisions must be applied in the following order:

(a) section 4.72 [supplementary credit for 2000 taxation year];

(a.1) section 4.301 [BC tax reduction credit];

(b) section 19.1 [logging tax deduction];

(c) and (d) [Repealed 2007-2-17.]

(e) section 20 [political contributions];

(f) section 13.1 [net employee investment tax credit];

(f.1) section 4.721 (2) [mining flow-through share tax credit];

(g) section 21 [small business venture capital tax credit].

Minimum tax

4.8 (1) Subject to section 4.85 [apportionment of additional taxes], if tax is payable by an individual under section 127.5 of the federal Act for a taxation year, there must be added in computing the individual's tax payable under this Act for the year the amount determined by the formula

A x	B

	C

A is the amount determined under section 120.2 (3) of the federal Act for the individual for the year,

B is the appropriate percentage for the year, and

C is the appropriate percentage for the year as defined in section 248 (1) of the federal Act.

(2) For the purposes of subsection (1) of this section, the result obtained by dividing B, as defined by that subsection, by C, as defined by that subsection, is to be rounded to the nearest one-thousandth or, if the result obtained by that division is equidistant from 2 consecutive one-thousandths, to the higher one-thousandth.

CPP/QPP disability benefits for previous years

4.81 Subject to section 4.85 [apportionment of additional taxes], there must be added in computing an individual's tax payable under this Act for a taxation year 49.5% of the amount, if any, added under section 120.3 of the federal Act in computing the individual's tax payable under that Act for the year.

Qualifying retroactive lump sum pension payments

4.82 (1) [Repealed 2003-23-22.]

(2) Subject to section 4.85 [apportionment of additional taxes], there must be added in computing an individual's tax payable under this Act for a taxation year 49.5% of the amount, if any, added under section 120.31 of the federal Act in computing the individual's tax payable under that Act for the year.

Lump sum pension payment

4.83 Subject to section 4.85 [apportionment of additional taxes], there must be added in computing an individual's tax payable under this Act for a taxation year 49.5% of the amount, if any, of the tax payable under section 40 of the Income Tax Application Rules (Canada) by the individual for the year.

Tax on split income

4.84 (1) [Repealed 2001-03-14.]

(2) Subject to section 4.85 [apportionment of additional taxes], there must be added to a specified individual's tax payable under this Act for a taxation year an amount that is determined by multiplying the individual's split income for the year by the highest percentage specified in section 4.1 that applies in determining tax that might be payable under this Act for the year.

(3) Section 120.4 of the federal Act applies for the purposes of this Act except that, in addition to any other necessary modifications required for this Act,

(a) subsection (2) of this section applies instead of section 120.4 (2) of the federal Act,

(b) the reference in section 120.4 (3) (b) (i) of the federal Act to section 121 of the federal Act must be read as a reference to section 4.69 of this Act [dividend tax credit], and

(c) the reference in section 120.4 (3) (b) (i) of the federal Act to section 126 of the federal Act must be read as a reference to section 4.71 of this Act [foreign tax credit].

Apportionment of additional taxes

4.85 (1) In the case of an individual who was resident in British Columbia on the last day of a taxation year and had income earned in the taxation year outside British Columbia, the tax that must be added under any of sections 4.8 to 4.84 in computing the individual's tax payable under this Act for the year is the amount determined by the formula

A x	(B – C)

	B

A is the amount determined for the individual under section 4.8, 4.81, 4.82, 4.83 or 4.84, as the case may be,

B is the individual's income for the year, and

C is the individual's income earned in the taxation year outside British Columbia.

(2) In the case of an individual who was not resident in British Columbia on the last day of a taxation year and had income earned in the taxation year in British Columbia, the tax that must be added under any of sections 4.8 to 4.84 in computing the individual's tax payable under this Act for the year is the amount determined by the formula

A x	B

	C

A is the amount determined for the individual under section 4.8, 4.81, 4.82, 4.83 or 4.84, as the case may be,

B is the individual's income earned in the taxation year in British Columbia, and

C is the individual's income for the year.

Repealed

4.86 [Repealed 2000-15-41.]

Bankrupt individuals

4.87 Section 128 (2) of the federal Act applies for the purposes of this Act except that, in addition to any other necessary modifications required for this Act, that section is to be read as if, in addition to the deductions referred to in clauses (A) to (C) of paragraph (e) (iii), that paragraph included a reference to the deductions under sections 4.301 [BC tax reduction credit] and 4.72 [supplementary credit for 2000 taxation year] of this Act.

Repealed

5–7 [Repealed 2000-15-6.]

Repealed

7.1 [Repealed RS1996-215-7.1 (8).]

Refundable sales tax credit

8 (1) In this section:

"adjusted income" in relation to an eligible individual for a taxation year, means the total of all amounts each of which would be the income for the year of the individual or the individual’s qualified relation if, in computing that income, no amount,

(a) were included under section 56 (6) [universal child care benefit] of the federal Act,

(b) were included in respect of any gain from a disposition of property to which section 79 [surrender of property by debtor] of the federal Act applies, and

(c) were deductible under section 60 (y) [repayment of universal child care benefit] of the federal Act;

"eligible individual", in relation to a taxation year, means an individual other than a trust who, at the end of December 31 of that year, is resident in British Columbia and is

(a) married or in a common-law partnership,

(b) a parent of a child, or

(c) at least 19 years of age;

"qualified relation", in relation to an individual for a taxation year, means the person who, at the end of the year, is the individual’s cohabiting spouse or common-law partner as defined in section 122.6 of the federal Act.

(1.1) Despite the definitions of "eligible individual" and "qualified relation" in subsection (1), a person is not an eligible individual for a taxation year or a qualified relation of an individual for a taxation year if the person

(a) dies before the end of the year,

(b) is, at the end of the year, a person described in section 149 (1) (a) or (b) of the federal Act, or

(c) is, at the end of the year, confined to a prison or similar institution and has been confined for a period of, or periods the total of which in the year was, more than 6 months.

(1.2) Section 122.5 (6.2) [non-residents and part-year residents] and (7) (a) [effect of bankruptcy] of the federal Act applies for the purposes of this section.

(2) An eligible individual is entitled to a sales tax credit for a taxation year if

(a) the individual files, with the individual's return of income under section 29 for the taxation year, a form provided by the minister that contains the information necessary to establish the individual's claim for the sales tax credit, and

(b) the return of income referred to in paragraph (a) is filed under section 29 within 3 years after the end of the taxation year.

(3) The sales tax credit amount for a taxation year is the total of the following, less the excess income reduction under subsection (4):

(a) $75 in respect of the eligible individual;

(b) $75 in respect of the qualified relation of the eligible individual for that taxation year, if any.

(4) The amount determined under subsection (3) is reduced by 2% of the amount by which the adjusted income of the eligible individual claiming the sales tax credit exceeds the total of the following:

(a) $15 000 in respect of the eligible individual;

(b) $3 000 in respect of the qualified relation of the eligible individual for that taxation year, if any.

(5) For the purpose of claiming the sales tax credit, an eligible individual who is entitled to a sales tax credit for a taxation year is deemed to have paid, at the end of the taxation year on account of the individual's tax under this Act for that taxation year, an amount equal to the sales tax credit.

(6) If an individual is a qualified relation of another individual for a taxation year, only one of them may file a form under subsection (2) for the taxation year.

Low income climate action tax credit

8.1 (1) In this section, "eligible individual", in relation to a month specified for a taxation year, means an individual, other than a trust,

(i) has, before the specified month, attained the age of 19 years, or

(ii) was, at any time before the specified month,

(A) a parent who resided with their child, or

(B) married or in a common-law partnership, and

(b) who was resident in British Columbia on the first day of the specified month and the preceding specified month.

(2) Section 122.5 of the federal Act, except the definition of "eligible individual" in subsection (1) and subsection (3), applies for the purposes of this section in relation to a month specified for the 2007 and subsequent taxation years.

(3) If, in relation to a month specified for a taxation year, an eligible individual files a return of income for the taxation year, the eligible individual is deemed to have paid during the specified month, on account of the eligible individual's tax payable under this Act for the taxation year, an amount equal to 25% of the amount, if any, determined by the following formula:

amount = total credits – deduction
where
total credits = the total of the following:

(a) the prescribed amount;

(b) the prescribed amount, if the individual has a qualified relation in relation to the specified month;

(c) the prescribed amount, if the individual has no qualified relation in relation to the specified month and is entitled to deduct an amount for the taxation year under section 118 (1) of the federal Act because of paragraph (b) of the description of "B" in that section in respect of a qualified dependant of the individual in relation to the specified month;

(d) the prescribed amount multiplied by the number of qualified dependants of the individual in relation to the specified month, other than a qualified dependant in respect of whom an amount is included under paragraph (c) in computing the total for the specified month;

deduction

=

2% of the amount, if any, by which the individual’s adjusted income for the taxation year in relation to the specified month exceeds,

(a) if the individual has no qualified relation or qualified dependant in relation to the specified month, $30 000, or

(b) in any other case, $35 000.

(4) In applying section 122.5 (3.1) [when advance payment applies] of the federal Act for the purposes of this section, the references to an amount expressed in dollars in that section must be read as a reference to $10.

(5) Despite section 122.5 (5) of the federal Act, as it applies for the purposes of this Act, the individual who is the eligible individual, in relation to a specified month, under section 122.5 (5) of the federal Act, as it applies for the purposes of that Act, is the individual who is the eligible individual, in relation to that specified month, for the purposes of this section.

(6) Despite section 122.5 (6) of the federal Act, as it applies for the purposes of this Act, a person who is the qualified dependant of an individual, in relation to a specified month, under section 122.5 (6) of the federal Act, as it applies for the purposes of that Act, is the qualified dependant of that individual, in relation to that specified month, for the purposes of this section.

(7) In applying section 122.5 (6.1) of the federal Act for the purposes of this section, that section must be read as including the following paragraph:

(d) an individual becomes or ceases to be resident in British Columbia.

(8) Without limiting section 48 (1) and (2), the Lieutenant Governor in Council may make regulations prescribing amounts for the purposes of subsection (3) of this section.

Definitions for BC Family Bonus

9 (1) For the purposes of sections 10 to 13:

"adjusted earned income" means, for an individual for a taxation year, the total of

(a) all amounts that are earned income of the individual for the taxation year, and

(b) if the individual had a cohabiting spouse or common-law partner at the end of the taxation year, all amounts that are earned income of the cohabiting spouse or common-law partner for the taxation year;

"adjusted income", "base taxation year", "cohabiting spouse or common-law partner", "eligible individual", "qualified dependant" and "return of income" have the same meaning as in section 122.6 of the federal Act;

"earned income" has the same meaning as in section 63 (3) of the federal Act.

(2) [Repealed 2000-15-8.]

BC Family Bonus

10 (1) As an exception to section 2, an overpayment on account of a person's liability under this Act for a taxation year is deemed to have arisen during a month in relation to which the year is the base taxation year if the following requirements are met:

(a) the person has filed a return of income for that year;

(b) if the minister so demands, the person's cohabiting spouse or common-law partner at the end of the taxation year has filed a return of income for that year;

(c) the person was resident in British Columbia for a period that includes the first day of the month and that began before that day.

(2) If a person who was resident in British Columbia during the period referred to in subsection (1) (c) was also resident outside British Columbia during that period, an overpayment that would otherwise be deemed to have arisen during the month referred to in that subsection is deemed to arise only if

(a) the person was present in British Columbia for a period of at least 14 days during that month, or

(b) the person comes within a class of persons exempted by regulation from the requirement to be present in British Columbia for the period referred to in paragraph (a).

(3) Subject to subsection (4), the overpayment deemed to have arisen during a month under subsection (1) in respect of the person's liability under this Act for a taxation year is equal to the total of

(a) the amount of the BC basic family bonus determined in accordance with the regulations under subsection (4), and

(b) the amount of the BC earned income benefit determined in accordance with the regulations under subsection (4).

(4) The Lieutenant Governor in Council may make regulations prescribing the amounts, or the calculation of the amounts, of the BC basic family bonus and the BC earned income benefit, as referred to in subsection (3).

(5) [Repealed 2004-40-12.]

(6) For the purposes of this section, if a person was resident in Canada for only part of a taxation year or was not resident in Canada at any time in a taxation year,

(a) the person's income for the year is deemed to be equal to the amount that would have been the person's income for the year had the person been resident in Canada throughout the year, and

(b) the person's earned income for the year is limited to that portion of the amount that would be the person's earned income that is included because of section 114 or 115 (1) of the federal Act in computing the person's taxable income or taxable income earned in Canada, as the case may be, for the year.

(7) For the purposes of this section, if an individual becomes bankrupt in a taxation year,

(a) the individual's earned income for the year includes the individual's earned income for the taxation year that begins on January 1 of the calendar year that includes the date of bankruptcy,

(b) the individual's income for the year includes the individual's income for the taxation year that begins on January 1 of the calendar year that includes the date of bankruptcy, and

(c) the total of all amounts deducted under section 63 of the federal Act in computing the individual's income for the year includes the amount deducted under that section for the individual's taxation year that begins on January 1 of the calendar year that includes the date of bankruptcy.

Notice requirements and other rules about eligible individuals and their spouses or common-law partners

11 (1) Section 122.62 (1), (2) and (4) of the federal Act applies for the purposes of sections 10 to 13 of this Act.

(a) at any time before the end of a particular month a taxpayer has become the cohabiting spouse or common-law partner of an eligible individual, and

(b) the taxpayer and the eligible individual jointly so elect, before the end of the 11th month after the particular month, in a form that is acceptable to the Provincial minister and filed with the minister,

for the purpose of determining the amount deemed under section 10 (1) to be an overpayment on account of the individual's liability under this Act for the base taxation year in relation to the particular month, the taxpayer is deemed to have been the eligible individual's cohabiting spouse or common-law partner throughout the period that began immediately before the end of that base taxation year and ended when the taxpayer became the individual's cohabiting spouse or common-law partner.

(a) before the end of a particular month an eligible individual in respect of a qualified dependant begins to live separate and apart from the individual's cohabiting spouse or common-law partner, because of a breakdown of their marriage or common-law partnership, for a period of at least 90 days that includes a day in the particular month, and

(b) the individual so elects, before the end of the 11th month after the particular month, in a form that is acceptable to the Provincial minister and filed with the minister,

for the purpose of determining the amount deemed under section 10 (1) to be an overpayment arising in any month after the particular month on account of the individual's liability under this Act for the base taxation year in relation to the particular month, subject to any subsequent election under subsection (2) or (4),

(c) the individual's adjusted income for the year is deemed to be equal to the individual's income for the year, and

(d) the individual's adjusted earned income for the year is deemed to be equal to the individual's earned income for the year.

(a) before the end of a particular month the cohabiting spouse or common-law partner of an eligible individual in respect of a qualified dependant dies, and

(b) the individual so elects, before the end of the 11th month after the particular month, in a form that is acceptable to the Provincial minister and filed with the minister,

for the purpose of determining the amount deemed under section 10 (1) to be an overpayment arising in any month after the particular month on account of the individual's liability under this Act for the base taxation year in relation to the particular month, subject to any subsequent election under subsection (2) or (3),

(c) the individual's adjusted income for the year is deemed to be equal to the individual's income for the year, and

(d) the individual's adjusted earned income for the year is deemed to be equal to the individual's earned income for the year.

BC Family Bonus cannot be attached or assigned

12 A refund of an amount deemed by section 10 to be an overpayment on account of a person's liability under this Act for a taxation year

(a) cannot be charged or given as security,

(b) cannot be assigned except under a prescribed Act,

(c) cannot be garnished or attached,

(d) is exempt from execution or seizure, and

(e) cannot be retained by way of deduction or set-off under the Financial Administration Act.

BC Family Bonus regulations and forms

13 (1) The Lieutenant Governor in Council may make regulations for the purposes of sections 10 to 12, including regulations

(a) [Repealed RS1996-215-13 (2).]

(b) exempting, for the purposes of section 10 (2) (b), classes of persons from the requirement to be present in British Columbia, and

(c) prescribing enactments for the purposes of section 12 (b).

(2) [Spent. RS1996-215-13 (2).]

(3) The Provincial minister may specify forms that are to be used for the purposes of sections 10 to 12.

Definitions for climate action dividend

13.01 In this section and sections 13.02 to 13.06:

"cohabiting spouse or common-law partner" has the same meaning as in section 122.6 of the federal Act;

"eligible individual", in respect of a qualified dependant, means a person who, on January 1, 2008,

(a) resides with the qualified dependant,

(b) is the parent of the qualified dependant who primarily fulfils the responsibility for the care and upbringing of the qualified dependant, and

(c) is not described in section 149 (1) (a) or (b) of the federal Act,

and for the purpose of this definition,

(d) if a qualified dependant resides with the dependant's female parent, the parent who primarily fulfils the responsibility for the care and upbringing of the qualified dependant is presumed to be the female parent,

(e) the presumption referred to in paragraph (d) does not apply in the circumstances prescribed for the purposes of paragraph (g) of the definition of "eligible individual" in section 122.6 of the federal Act, and

(f) the factors prescribed for the purposes of paragraph (h) of the definition of "eligible individual" in section 122.6 of the federal Act must be considered in determining what constitutes care and upbringing;

"individual" does not include a trust;

"qualified dependant" means a person who

(a) on December 31, 2007, has not attained the age of 18 years,

(b) is not a person in respect of whom an amount was deducted under paragraph (a) of the description of "B" in section 118 (1) of the federal Act in computing the tax payable by the person's spouse or common-law partner for the taxation year that includes December 31, 2007, and

(c) is not a person in respect of whom a special allowance under the Children's Special Allowances Act (Canada) is payable for December 2007,

but does not include a person who, on January 1, 2008, is an eligible individual in respect of another person who is a qualified dependant;

"refund of an overpayment" means a refund of an amount deemed under section 13.02 to be an overpayment.

Climate action dividend

13.02 (1) An individual is deemed to have made an overpayment on account of the individual's liability under this Act for the 2006 taxation year if

(a) on December 31, 2007, the individual

(i) is resident in British Columbia, or

(ii) is not resident in British Columbia but is in a prescribed class of individuals, and

(b) the individual

(i) is at least 18 years of age on December 31, 2007,

(ii) is less than 18 years of age on December 31, 2007 and is an eligible individual in respect of a qualified dependant, or

(iii) is in a prescribed class of individuals and meets the prescribed conditions on December 31, 2007.

(2) The amount that an individual is deemed to have overpaid under subsection (1) is

(a) in the case of an individual who is not an eligible individual in respect of a qualified dependant, $100, or

(b) in the case of an individual who is an eligible individual in respect of one or more qualified dependants, $100 plus $100 for each qualified dependant.

(3) Despite subsection (1), an individual is not deemed to have made an overpayment on account of the individual's liability under this Act for the 2006 taxation year if the individual is confined to a prison or similar institution for a period of at least 90 days that includes January 1, 2008.

Climate action dividend cannot be attached or assigned

13.03 A refund of an overpayment

(a) cannot be charged or given as security,

(b) cannot be assigned except under a prescribed Act,

(c) cannot be garnished or attached,

(d) is exempt from execution or seizure, and

(e) cannot be retained by way of deduction or set-off under the Financial Administration Act.

Climate action dividend — general

13.04 (1) Despite sections 34 and 40 (1.1), the following sections of the federal Act, as they apply for the purposes of this Act, do not apply to a refund of an overpayment:

(a) section 160.1 (1) (b) [interest if excess refunded];

(b) section 164 (2) [application of refund or repayment to other debts];

(c) section 164 (3) [interest on refunds].

(2) Despite section 40 (1), and section 164 (1) (b) of the federal Act as it applies for the purposes of this Act,

(a) if an overpayment on account of an individual's liability under this Act is deemed to have arisen under section 13.02 (1) (a) (i) and (b) (i) of this Act, the minister must, without application and with all due dispatch, refund the amount of the overpayment after the minister is provided with the information and records required by the regulations, and

(b) subject to subsection (3), if an overpayment on account of an individual's liability under this Act is deemed to have arisen under section 13.02 (1) of this Act, the Provincial minister must, with all due dispatch, refund the amount of the overpayment after

(i) an application is filed in the form, and containing the information, required by the Commissioner of Income Tax, and

(ii) the Commissioner of Income Tax is provided with the information and records required by the regulations.

(3) Subsection (2) (b) does not apply if the minister has refunded the amount of the overpayment to the individual under subsection (2) (a).

(4) Despite sections 41 and 42, no objection or appeal lies in respect of the determination of the entitlement of an individual to a refund of an overpayment.

(5) Without limiting any provision of this Act or the federal Act, for the purpose of determining the entitlement of an individual to a refund of an overpayment, the Commissioner of Income Tax has powers equivalent to the federal minister under sections 231, 231.1 and 233 (1) of the federal Act, and for that purpose those sections apply.

(6) If an individual receives a refund of an overpayment to which the individual is not entitled, the individual must repay the amount to

(a) the minister, if the minister refunded the amount under subsection (2) (a), and

(b) the Provincial minister, if the Provincial minister refunded the amount under subsection (2) (b).

Climate action dividend — no further assessments, determinations or decisions

13.05 (1) Despite any other provision of this Act or the federal Act, as it applies for the purposes of this Act, an assessment, determination or decision may not be made on or after the prescribed date with respect to the entitlement of an individual to a refund of an amount deemed under section 13.02 to be an overpayment.

(2) The date prescribed for the purposes of subsection (1) may not be a date before August 1, 2010.

Climate action dividend regulations

13.06 (1) Without limiting section 48 (1) and (2), the Lieutenant Governor in Council may make regulations as follows:

(a) prescribing classes of individuals for the purposes of section 13.02 (1) (a) (ii);

(b) prescribing classes of individuals for the purposes of section 13.02 (1) (b) (iii);

(c) prescribing conditions for the purposes of section 13.02 (1) (b) (iii);

(d) prescribing Acts for the purposes of section 13.03 (b);

(e) respecting the information and records to be provided under section 13.04 (2) to the minister or Commissioner of Income Tax;

(f) prescribing a date for the purposes of section 13.05 (1).

(2) In making regulations under subsection (1) (c), the Lieutenant Governor in Council may make different regulations for any different classes of individuals prescribed for the purposes of section 13.02 (1) (b) (iii).

(3) In making regulations under subsection (1) (e), the Lieutenant Governor in Council may delegate a matter to or confer a discretion on the minister or Commissioner of Income Tax.

Net employee investment tax credit

13.1 (1) In this section:

"net employee investment tax credit" means, in relation to an individual's taxation year, the aggregate of the tax credit amounts shown on all tax credit certificates issued to an individual for share purchases made during the taxation year or within 60 days after the end of the taxation year, minus the portion of that aggregate amount that was deducted from the individual's tax otherwise payable under this Act for the immediately preceding taxation year;

"tax credit certificate" means a tax credit certificate issued by the administrator under section 7 or 24 of the Employee Investment Act.

(2) There may be deducted from the tax payable by an individual under this Act in respect of a taxation year the smaller of

(a) the individual's net employee investment tax credit for that taxation year, or any smaller amount that the individual elects to deduct, and

(3) An individual who is entitled to a deduction under this section must file, with the individual's annual return for any taxation year in respect of which a deduction is claimed under this section, a copy of the tax credit certificate.

(4) An individual is not entitled to a deduction under this section unless the individual files a return under section 29 within 3 years after the end of the taxation year to which the deduction pertains.

(5) Without limiting any provision of this or any other enactment, the Provincial minister, the federal minister, if a collection agreement is in effect, and the minister responsible for the administration of the Employee Investment Act may

(a) collect information that is relevant to a tax credit being claimed or already claimed under this section, and

(b) share with each other, in accordance with an information-sharing agreement entered into under section 65, information relevant to a tax credit being claimed or already claimed under this section.

Refunds to mutual fund trusts

13.2 (1) A mutual fund tru