On a macro-economic level, the Budget forecasts a surplus of
$879 million for fiscal 2014/2105 and smaller surpluses, ranging
from $284 million to $399 million, for the following 3 years.
Revenue is expected to grow by 2.7 percent annually and expenses by
2.5 percent over that 4 year period. Provincial debt is scheduled
to increase from $63 billion to $70.4 billion over the next three
years, but debt as a percent of GDP to decrease from 26.7% to
There are no further details on the 0.5% increase to the
provincial sales tax as the Metro Vancouver Congestion Improvement
Tax (should it come to be), including whether it will apply to
As to tax measures:
The expiry of the 2% surtax on income
over $150,000 per year at the end of 2015 is confirmed.
Existing tax credits have been
extended or expanded – the training tax credits through 2017,
the mining flow-through tax credit for another year, to the end of
2015 (as happens every year), the new mine allowance to 2019, and
the interactive digital media tax credit through 2018. The digital
animation or visual effects (or "DAVE") tax credit now
includes eligible post-production activities for productions where
principal photography begins on or after March 15, 2015.
The equity tax credit budget for the
Small Business Venture Capital Act is increased for 2015 by
$3million, thereby allowing for up to $10 million of additional
equity financing this year for qualifying new businesses.
Re provincial sales tax
registration obligations have been
expanded - effective September 1, 2015, persons outside BC who in
the ordinary course of business accept orders for tangible personal
property ("TPP") from a location in BC, sell or provide
TPP to a person in BC, or hold TPP in inventory in BC at the time
of its sale must be registered for PST;
the taxation of TPP used to make
other TPP has been "clarified" - TPP used to make other
TPP that in turn is used to fulfil contracts to improve real
property is now subject to the same PST treatment regardless of
whether the TPP is purchased in BC, or brought, sent or delivered
into BC. Thus, a refund of PST is available if TPP is used in BC to
make other TPP which is then sent outside of BC to fulfil a
contract to improve real property located outside of BC and if
unrecoverable sales tax is imposed by another jurisdiction.
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With the 2017 federal budget likely due to be released in late February or March, there is speculation that the government may curtail the preferential tax treatment afforded to gains on the disposition of capital property
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