Table of Contents

• Form BC428, British Columbia Tax
• Step 1 - British Columbia tax on taxable income
• Step 2 - British Columbia non-refundable tax credits
• Step 3 - British Columbia tax
• Form BC479, British Columbia Credits
  • Sales tax credit
  • Venture capital tax credit
  • Mining exploration tax credit

The information in this section will help you complete Form BC428, British Columbia Tax, and Form BC479, British Columbia Credits.

The terms spouse and common-law partner are defined on page 12 in the General Income Tax and Benefit Guide

The term end of the year means December 31, 2001, the date you left Canada if you emigrated in 2001, or the date of death for a person who died in 2001.

Tax tip
A growing number of British Columbia tax measures are distinct from corresponding federal measures. However, many rules relating to calculating British Columbia tax are still based on the federal Income Tax Act. As a result, you may find it easier to calculate your federal tax first. Your total taxes payable will be the same, no matter which tax you calculate first.

Form BC428, British Columbia Tax

Complete Form BC428 if you were a resident of British Columbia at the end of the year.

If you had income from a business with a permanent establishment outside British Columbia, complete Form T2203, Provincial and Territorial Taxes for 2001 - Multiple Jurisdictions, before you complete Form BC428.

You also have to complete Form BC428 if you were a non-resident of Canada in 2001 and you earned income from employment in British Columbia, or received income from a business with a permanent establishment only in British Columbia.

If you paid royalties to the province of British Columbia in 2001, you have to complete Form T81, British Columbia Royalty and Deemed Income Rebate (Individuals), to calculate your rebate or additional British Columbia tax resulting from the royalties paid.

Step 1 - British Columbia tax on taxable income

Enter, on line 1, your taxable income from line 260 of your return. Use this amount to determine which one of the five columns you have to complete. Enter this amount on line 2 of the applicable column and complete the calculation.

Step 2 - British Columbia non-refundable tax credits

British Columbia now has its own non-refundable tax credits. These credits reduce the amount of provincial tax you owe. However, if the total of these credits is more than the amount of provincial tax you owe, you will not get a refund for the difference.

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

To calculate some of the non-refundable tax credits, you will need to use the new Provincial Worksheet in this book.

Newcomers to Canada and emigrants

If you prorated any of the amounts you claimed on lines 300 to 306, 315 and 316 of your federal Schedule 1, you are required to perform the same pro-ration on the corresponding provincial amounts at lines 5804 to 5820, 5840 and 5844.

Line 5804 - Basic personal amount

Claim the basic personal amount of $8,000.

Line 5808 - Age amount

You can claim this amount if you were 65 or older on December 31, 2001, and your net income (line 236 of your return) is less than $50,619.

If your net income is:

• $26,705 or less, enter $3,587 on line 5808; or
• more than $26,705 but less than $50,619, complete the chart for line 5808 on the Provincial Worksheet in this book to calculate your claim.

Line 5812 - Spouse or common-law partner amount

You can claim this amount if you met the rules for claiming it on line 303 of federal Schedule 1. You still may be able to claim the provincial amount if your spouse or common-law partner's net income (line 236 of his or her return, or the amount that it would be if he or she filed a return) is less than $7,535.

If your spouse or common-law partner's net income is:

• $685 or less, enter $6,850 on line 5812; or
• more than $685 but less than $7,535, complete the calculation on Form BC428 to determine your claim and enter the result on line 5812.

Note
Enter your marital status and the information about your spouse or common-law partner (including his or her net income, even if it is zero) in the Identification area on page 1 of your return.

Line 5816 - Amount for an eligible dependant

You can claim this amount if you met the rules for claiming it on line 305 of federal Schedule 1. You still may be able to claim the provincial amount if your dependant's net income (line 236 of his or her return, or the amount that it would be if he or she filed a return) is less than $7,535.

If your dependant's net income is:

• $685 or less, enter $6,850 on line 5816; or
• more than $685 but less than $7,535, complete the chart for line 5816 on the Provincial Worksheet in this book to calculate your claim.

If you have not already completed the federal Schedule 5, complete and attach it to your return.

Line 5820 - Amount for infirm dependants age 18 or older

You can claim this amount if you met the rules for claiming it on line 306 of federal Schedule 1 and your dependant's net income (line 236 of his or her return, or the amount that it would be if he or she filed a return) is less than $8,000.

Complete the chart for line 5820 on the Provincial Worksheet in this book to calculate your claim.

Line 5824 - Canada Pension Plan or Quebec Pension Plan contributions through employment

Enter on this line the amount you claimed on line 308 of federal Schedule 1.

Line 5828 - Canada Pension Plan or Quebec Pension Plan contributions on self-employment and other earnings

Enter on this line the amount you claimed on line 310 of federal Schedule 1.

Line 5832 - Employment Insurance premiums

Enter on this line the amount you claimed on line 312 of federal Schedule 1.

Line 5836 - Pension income amount

You can claim this amount if you met the rules for claiming it on line 314 of federal Schedule 1. Enter on line 5836 the same amount that you entered on line 314.

Line 5840 - Caregiver amount

You can claim this amount if you met the rules for claiming it on line 315 of federal Schedule 1 and your dependant's net income (line 236 of his or her return, or the amount that it would be if he or she filed a return) is less than $14,272.

Complete the chart for line 5840 on the Provincial Worksheet in this book to calculate your claim.

Line 5844 - Disability amount

You can claim this amount if you met the rules for claiming it on line 316 of federal Schedule 1.

• If you were 18 or over at the end of the year, enter $4,362 on line 5844.
• If you were under 18 at the end of the year, complete the chart for line 5844 on the Provincial Worksheet in this book to calculate your claim.

Line 5848 - Disability amount transferred from a dependant (other than your spouse or common-law partner)

You can claim this amount if you met the rules for claiming it on line 318 of federal Schedule 1. Complete the chart for line 5848 on the Provincial Worksheet in this book to calculate your claim.

Line 5852 - Interest paid on your student loans

Enter on this line the amount you claimed on line 319 on federal Schedule 1.

Line 5856 - Tuition and education amounts

The tuition and education amounts that you claimed, on line 323 of your federal Schedule 1, may be different than the provincial amounts you calculate.

Complete Part 1 of Schedule BC(S11), Provincial Tuition and Education Amounts, to calculate your claim.

Receipts - If you are filing a paper return, attach the completed Schedule BC(S11), but not your receipts or other forms. Keep them in case we ask to see them. If you are filing electronically, keep all of your documents.

Transferring and carrying forward amounts

You may not need all of your 2001 tuition and education amounts to reduce your provincial income tax to zero. In this case, you may transfer all or part of the unused portion to one person, either your spouse or common-law partner (who would claim it on line 5864), or your parent or grandparent, or your spouse or common-law partner's parent or grandparent (who would claim it on line 5860).

You can only transfer an amount to your parent or grandparent, or your spouse or common-law partner's parent or grandparent if your spouse or common-law partner does not claim an amount for you on line 5812 or 5864.

Complete Part 2 of Schedule BC(S11) to calculate the provincial amount available to transfer, as well as the back of Form T2202, Education Amount Certificate, or T2202A, Tuition and Education Amounts Certificate, to designate who can claim it and the amount the person can claim. This amount may be different from the amount claimed federally by that same person.

Tax tip
If you are transferring an amount to a designated person, do not transfer more than the person can use. That way, you can carry forward as much as possible to use in a future year.

You can carry forward and claim in a future year the part of your tuition and education amounts you do not need to use (and do not transfer) for the year. Complete Part 3 of Schedule BC(S11) to calculate the amount you can carry forward.

Line 5860 - Tuition and education amounts transferred from a child

You can claim this amount if you met the rules for claiming it on line 324 of federal Schedule 1.

Enter, on line 5860, the total of all provincial amounts transferred to you that each student designated on the back of their Form T2202 or T2202A and on line 20 of their Schedule BC(S11). The student may choose to transfer an amount that is less than the provincial amount allowable calculated in Part 2 of his or her Schedule BC(S11).

Note
The student cannot transfer to you any unused tuition and education amounts carried forward from a previous year, but only those from 2001.

See other rules for line 324 in the General Income Tax and Benefit Guide that may apply if the student has a spouse or a common-law partner.

Receipts - If you are filing a paper return, do not include the student's Schedule BC(S11), forms, or official tuition fees receipts, but keep them in case we ask to see them. If you are filing electronically keep all of your documents.

Line 5864 - Amounts transferred from your spouse or common-law partner

You can claim these amounts if you met the rules for claiming them on line 326 of federal Schedule 1. Complete Schedule BC(S2), Provincial Amounts Transferred From Your Spouse or Common-law Partner to calculate your claim.

Receipts - Do not include any receipts or forms [other than your own Schedule BC(S2)] for your spouse or common-law partner, but keep them in case we ask to see them. If you are filing electronically keep all of your documents.

Line 5868 - Medical expenses

The allowable medical expenses you can claim on line 5868 are the same as those you can claim on line 330 of your federal Schedule 1. They have to cover the same 12-month period ending in 2001, and have not been claimed in 2000. However, your total expenses have to be more than either 3% of your net income (line 236 of your return) or $1,663, whichever is less.

Line 5872 - Medical expenses adjustment

If you claimed, on line 5868, medical expenses for a dependant, other than your spouse or common-law partner, whose net income (line 236 of his or her return, or the amount that it would be if he or she filed a return) is more than $8,000, complete the chart for line 5872 on the Provincial Worksheet in this book to calculate the adjustment.

Tax Tip
Provincially, the medical expenses adjustment that you calculate will be less than the amount you calculated federally. If this is the case, and the adjustment you calculate is less than the medical expenses for that dependant, it will be to your benefit to include these expenses at line 5868.

Line 5896 - Donations and gifts

To calculate your claim on line 5896, enter the amounts from lines 345 and 347 of federal Schedule 9 and multiply them by the rates on lines 33 and 34 of Form BC428.

Step 3 - British Columbia tax

Line 38 - British Columbia tax on split income

If you have to pay federal tax on split income on line 424 of your federal Schedule 1, complete Part 2 of Form T1206, Tax on Split Income, to calculate the provincial tax that applies to this income. Form T1206 also contains a special rule that applies to the amount you enter on line 428 of your return. You can find more information on tax on split income on page 14 in the General Income Tax and Benefit Guide.

Line 46 - British Columbia additional tax for minimum tax purposes

If you have to pay minimum tax as calculated on Form T691, Alternative Minimum Tax, you will also have to determine your British Columbia additional tax for minimum tax purposes. To do this, complete Form T1219, Provincial Alternative Minimum Tax, and enter the calculated amount on line 46 of Form BC428. You can find information about minimum tax on page 30 of the General Income Tax and Benefit Guide.

Line 50 - British Columbia logging tax credit

If you have logging operations in British Columbia on which British Columbia logging tax is payable for 2001, you may be able to claim this credit.

Enter your credit (shown on Form BCFIN 542) on line 50.

Lines 52 and 53 - British Columbia political contribution tax credit

You can deduct part of the contributions you made in 2001 to political parties or constituency associations registered in British Columbia, or to candidates in an election to the British Columbia legislature.

How to claim

Enter your total contributions on line 52 of Form BC428 and determine the amount to enter on line 53 as follows:

• For contributions of more than $1,150, enter $500 on line 53 of Form BC428.
• For contributions of less than $1,150, complete the chart for line 53 on the Provincial Worksheet in this book.

Receipts - Attach to your paper return official receipts signed by an official of the recognized political party or constituency association, or the candidate's agent. If you are filing electronically, keep your receipts in case we ask to see them.

Line 55 - British Columbia employee share ownership plan tax credit

You can claim this credit if you acquired shares under a registered British Columbia employee share ownership plan (ESOP) at any time in 2001 (and did not claim them on your 2000 return) or in the first 60 days of 2002.

Your Form ESOP 20 shows the date you bought your shares under "Investment date." If you bought shares under an employee share ownership plan, and you want to know if the plan is registered under the Employee Investment Act, ask your employer.

Enter, on line 55 of Form BC428, the "Tax credit amount" shown on Form ESOP 20. Include these forms with your paper return. If you are filing electronically, keep them in case we ask to see them.

Line 56 - British Columbia employee venture capital tax credit

You can claim this credit if you acquired or irrevocably subscribed and paid for shares from a registered British Columbia employee venture capital corporation (EVCC) at any time in 2001 (and did not claim them on your 2000 return) or in the first 60 days of 2002. Your Form EVCC 30 shows the date you bought your shares under "Investment date."

Enter, on line 56 of Form BC428, the "Tax credit amount" shown on Form EVCC 30. Include these forms with your paper return. If you are filing electronically, keep them in case we ask to see them.

If you bought shares from a registered EVCC, you are also eligible for a federal tax credit. For details, see lines 413 and 414 in the General Income Tax and Benefit Guide.

If you have questions about the employee venture capital tax credit, contact the employee venture capital corporation that issued your shares, your stockbroker, or your investment advisor.

Line 57 - Total ESOP and EVCC tax credits

The maximum total ESOP and EVCC tax credits that you can claim on your 2001 return is $2,000. The ESOP and EVCC tax credits that you do not claim in a year are not refundable, and you cannot carry them forward to future years.

If you bought ESOP or EVCC shares in the first 60 days
of 2002, you can claim the tax credit on your 2001 or 2002 return, or you can divide the credit between these two returns.

Keep a record of how you claim your tax credit. Write on the certificate the credit you are claiming on your 2001 return and the credit you will claim on your 2002 return. Similarly, when you file your 2001 paper return, attach a photocopy of the original certificate that shows the breakdown of your credit between your 2001 and 2002 returns. If you are filing electronically, keep your certificate in case we ask to see it.

Line 59 - British Columbia mining flow-through share tax credit

You may claim this credit if you invested in flow-through shares, and BC mining flow-through share expenditures (BC qualifying expenses) have been renounced to you.

Your BC qualifying expenses are shown in box 141 on Information slip T101, Statement of Resource Expenses, you received from a mining exploration corporation, or in section 3 of Information slip T5013, Statement of Partnership Income, you received as a member of a partnership.

Complete Form T1231, British Columbia Mining Flow-Through Share Tax Credit, to calculate the amount of credit you may claim, and enter it on line 59 of form BC428.

Receipts - If you are filing a paper return, attach a copy of Form T1231 and Slips T101 or T5013. If you are filing electronically, keep them in case we ask to see them.

Form BC479, British Columbia Credits

Sales tax credit

You can claim this credit if, on December 31, 2001, you were a resident of British Columbia and you met any of the following conditions:

• you were 19 years of age or older;
• you had a spouse or common-law partner; or
• you were a parent.

If you had a spouse or common-law partner on December 31, 2001, you and your spouse or common-law partner have to decide which one of you will claim the sales tax credit for both of you.

Only one claim can be made for each individual.

You cannot claim this credit if, on December 31, 2001, you were confined to a prison or a similar institution and were there for more than six months during 2001.

Do not claim this credit on a return for a person who died in 2001.

The sales tax credit is for low-income families and individuals. If you had a spouse or common-law partner on December 31, 2001, and your net family income was $23,000 or more, do not complete the sales tax credit calculation. If you were single, separated, widowed, or divorced on December 31, 2001, and your net income was $17,500 or more, do not complete the sales tax calculation.

Note
Enter your marital status and information about your spouse or common-law partner (including his or her net income, even if it is zero) in the Identification area on page 1 of your return.

Venture capital tax credit

If you acquired shares from a registered British Columbia venture capital corporation (VCC) at any time in 2001, you can claim this credit up to a maximum of $60,000 in 2001. Your Form VCC 10 shows the date you bought your shares under "Investment date."

Enter on line 11 of Form BC479 the "Tax credit amount" shown on Form VCC 10.

Include these forms with your paper return. If you are filing electronically, keep them in case we ask to see them.

For questions about the venture capital tax credit, contact the venture capital corporation that issued your shares, your stockbroker, or your investment advisor.

Line 12 - Unused venture capital tax credit from previous years

Any unused venture capital tax credit from previous years is shown on your most recent Notice of Assessment or Reassessment. Enter this amount on line 12 of Form BC479. We will show any amount available to carry forward to 2002 on your 2001 Notice of Assessment.

Mining exploration tax credit

You can claim this refundable tax credit if you were resident in British Columbia at the end of the year and you incurred qualified mining exploration expenses in the province in 2001.

The expenses must have been incurred for determining the existence, location, extent, or quality of a mineral resource in British Columbia.

Enter on line 14 of Form BC479 the tax credit amount calculated on Form T88, BC Mining Exploration Tax Credit.

Include Form BC479 and Form T88 with your paper return. If you are filing electronically, keep them in case we ask to see them.