All the information you need to calculate your British Columbia tax and credits is included on the following pages. You will find two copies of Form BC428, British Columbia Tax, and Form BC479, British Columbia Credits, in this book. Complete the forms that apply to you, and attach a copy to your return

What's new for 2001?

British Columbia now has its own non-refundable tax credits. The eligibility criteria and rules for claiming them are the same as for the federal non-refundable tax credits. However, the value and calculation of some British Columbia non-refundable tax credits are different from the corresponding federal credits.

British Columbia has reduced the provincial tax rates and now has five tax brackets for calculating provincial tax.

The applicable rate for the dividend tax credit has also been revised.

The British Columbia surtax and supplementary credits have been eliminated.

A mining flow-through share tax credit has been introduced to encourage mining exploration in British Columbia.

BC Family Bonus

The BC Family Bonus program includes the basic Family Bonus and the BC Earned Income Benefit. This program provides tax-free monthly payments to help low- and modest-income families with the cost of raising children under age 18. Benefits are combined with the Canada Child Tax Benefit (CCTB) into a single monthly payment.

Basic Family Bonus

For families with net income below $20,500, the basic Family Bonus provides the following amounts:

• $10.25 per month for the first child;
• $26.00 per month for the second child; and
• $31.91 per month for each additional child.

Families with net income above $20,500 may also be entitled to a basic Family Bonus amount depending on their net income and the number of children they have.

BC Earned Income Benefit

Families whose earned income is more than $3,750 may also be entitled to the following:

• up to $50.41 per month for the first child;
• up to $33.75 per month for the second child; and
• up to $27.50 per month for each additional child.

Families with net income above $20,921 may receive part of the earned income benefit.

There is no need to apply separately to receive payments under the BC Family Bonus. We will use the information from the CCTB application to determine your eligibility for the program.

You (and your spouse or common-law partner) should file your 2001 tax return(s) as soon as possible. The information you (and your spouse or common-law partner) give on your return(s) will determine how much you will get starting in July 2002.

This program is fully funded by the Province of British Columbia. For more information, call 1-800-387-1193.

If you have questions…

If you have questions about British Columbia tax and credits, contact the Canada Customs and Revenue Agency (CCRA) at 1-800-959-8281.

The address and telephone numbers of your tax services office are listed in the federal government section of your telephone book and on the CCRA's Web site at: www.ccra.gc.ca/tso/ .