March 25, 2015 - 1:53 PM
VICTORIA - The administration and enforcement component of the Liquefied Natural Gas Income Tax Act provides proponents with clarity and British Columbians with confidence, announced Minister of Finance Michael de Jong today.
The introduction of Bill 26, the Liquefied Natural Gas Income Tax Amendment Act 2015, fulfils the government's commitment to set out the remaining elements of a competitive LNG income tax framework.
The bill gives industry information about their obligations and rights under the act including their obligation to register, file returns and pay the tax and their right to appeal. It also sets out government's powers to enforce the act including the powers to audit, assess penalties and collect the tax. In addition, the bill includes anti-avoidance rules, transitional rules and clarifying provisions.
The bill amends the Natural Gas Tax Credit under the British Columbia Income Tax Act to allow for the credit rate on the cost of natural gas to be adjusted above the existing 0.5% rate by regulation. This flexibility allows the Province to respond to the fluctuating cost of natural gas to maintain a competitive tax structure. The maximum effective reduction of B.C. general corporate income tax rate from 11% to 8% remains unchanged.
The Province committed to providing proponents with certainty through the introduction of the Liquefied Natural Gas Income Tax Act in the fall of 2014. This phase adds the administration and enforcement of the Liquefied Natural Gas Income Tax. The Province will continue to consult with LNG industry stakeholders in developing the regulations.
Quick Facts:
* The Liquefied Natural Gas Income Tax Act received Royal Assent on Nov. 27, 2014, and provided proponents with the certainty needed to move forward on reaching final investment decisions.
* At that time, the Province committed to setting out the administration and enforcement provisions of the act in spring 2015.
* Regulations to set out the Natural Gas Tax Credit rate, to support the determination of the cost of natural gas and the registration and security framework are expected to be finalized later this year.
News from © iNFOnews, 2015