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Table of contents

• Form BC428, British Columbia Tax
  • Step 1 - British Columbia non-refundable tax credits
    • Newcomers to Canada and emigrants
    • Line 5804 - Basic personal amount
    • Line 5808 - Age amount
    • Line 5812 - Spouse or common-law partner amount
    • Line 5816 - Amount for an eligible
      dependant
    • Line 5820 - Amount for infirm dependants age 18 or older
    • Line 5824 - Canada Pension Plan or Quebec Pension Plan contributions through
      employment
    • Line 5828 - Canada Pension Plan or Quebec Pension Plan contributions on
      self-employment and other earnings
    • Line 5832 - Employment Insurance premiums
    • Line 5833 - Adoption expenses
    • Line 5836 - Pension income amount
    • Line 5840 - Caregiver amount
    • Line 5844 - Disability amount
    • Line 5848 - Disability amount transferred from a dependant (other than your spouse or common-law partner)
    • Line 5852 - Interest paid on your student loans
    • Line 5856 - Your tuition and education amounts
    • Line 5860 - Tuition and education amounts transferred from a child
    • Line 5864 - Amounts transferred from your spouse or common-law partner
    • Line 5868 - Medical expenses
    • Line 5872 - Allowable amount of medical expenses for other dependants
    • Line 5896 - Donations and gifts
  • Step 2 - British Columbia tax on taxable income
  • Step 3 - British Columbia tax
    • Line 39 - British Columbia tax on split income
    • Line 47 - British Columbia additional tax for minimum tax purposes
    • Line 49 - Provincial foreign tax credit
    • Lines 51 to 57 - BC tax reduction
    • Line 59 - British Columbia logging tax credit
    • Lines 61 and 62 - British Columbia political contribution tax credit
    • Line 64 - British Columbia employee share ownership plan tax credit
    • Line 65 - British Columbia employee venture capital tax credit
    • Line 66 - Total ESOP and EVCC tax credits
    • Line 68 - British Columbia mining flow-through share tax credit
• Form BC479, British Columbia Credits
  • Lines 1 to 13 - Sales tax credit
  • Lines 14 to 17 - Venture capital tax credit
  • Line 16 - Unused venture capital tax credit from previous years
  • Lines 18 to 19 - Mining exploration tax credit
  • Lines 20 and 22 - British Columbia training tax credit

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

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

The term end of the year means December 31, 2007, the date you left Canada if you emigrated in 2007, or the date of death for a person who died in 2007.

Tax Tip
A number of British Columbia tax measures are distinct from corresponding federal measures. However, many rules for 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 2007 - Multiple Jurisdictions, instead of completing Form BC428.

You also have to complete Form BC428 if you were a non-resident of Canada in 2007 and you earned income from employment in British Columbia, or received income from a business with a permanent establishment only in British Columbia.

Step 1 - British Columbia non-refundable tax credits

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 Provincial Worksheet.

Newcomers to Canada and emigrants

If you prorated any of the amounts you claimed on lines 300 to 306, 315, 316, 318, 324, and 326 of your federal Schedule 1, you have to prorate the corresponding provincial amounts at lines 5804 to 5820, 5840, 5844, 5848, 5860, and 5864.

Line 5804 - Basic personal amount

Claim the basic personal amount of $9,027.

Line 5808 - Age amount

You can claim this amount if you were 65 or older on December 31, 2007, and your net income (line 236 of your return) is less than $57,119.

If your net income is:

• $30,132 or less, enter $4,048 on line 5808; or
• more than $30,132 but less than $57,119, complete the calculation for line 5808 on the Provincial Worksheet to determine your claim.

Note
You may be able to transfer all or part of your age amount to your spouse or common-law partner or to claim all or part of his or her age amount. See line 5864 for details.

Line 5812 - Spouse or common-law partner amount

You can claim this amount if the rules are met for claiming the amount on line 303 of federal Schedule 1. You may 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 $8,502.

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

• $773 or less, enter $7,729 on line 5812; or
• more than $773 but less than $8,502, complete the calculation on Form BC428 to determine your claim and enter the amount 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 the rules are met for claiming the amount on line 305 of federal Schedule 1. You may 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 $8,502.

If your dependant's net income is:

• $773 or less, enter $7,729 on line 5816; or
• more than $773 but less than $8,502, complete the calculation for line 5816 on the Provincial Worksheet to determine your claim.

If you have not already completed 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 the rules are met for claiming the amount on line 306 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 $10,241.

Complete the calculation for line 5820 on the Provincial Worksheet to determine 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 5833 - Adoption expenses

You can claim this amount if you met the rules for claiming the amount on line 313 of federal Schedule 1. Enter on line 5833 the same amount you entered on line 313.

Note
Only residents of British Columbia are eligible for this amount. If you are not a resident of British Columbia, you cannot claim this tax credit in calculating your British Columbia tax even though you may have received income from a source inside British Columbia in 2007.

Line 5836 - Pension income amount

You can claim this amount if you met the rules for claiming an amount on line 314 of federal Schedule 1.

The amount you can claim on line 5836 is the amount on line 314 of federal Schedule 1, or $1,000, whichever is less.

Note
Only residents of British Columbia are eligible for this amount. If you are not a resident of British Columbia, you cannot claim this tax credit in calculating your British Columbia tax even though you may have received income from a source inside British Columbia in 2007.

Line 5840 - Caregiver amount

You can claim this amount if the rules are met for claiming the amount on line 315 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 $17,317.

Complete the calculation for line 5840 on the Provincial Worksheet to determine your claim.

Line 5844 - Disability amount

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

• If you were 18 or over at the end of the year, enter $6,770 on line 5844.
• If you were under 18 at the end of the year, you may be eligible to claim a supplement up to a maximum of $3,950 in addition to the disability amount of $6,770. Complete the calculation for line 5844 on the Provincial Worksheet to determine your claim.

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

You can claim this amount if the rules are met for claiming the amount on line 318 of federal Schedule 1. Complete the calculation for line 5848 on the Provincial Worksheet to determine your claim.

Line 5852 - Interest paid on your student loans

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

Line 5856 - Your tuition and education amounts

Complete 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). Whether you are filing a paper return or electronically, keep your forms and official tuition fees receipts in case we ask to see them.

Transferring and carrying forward amounts

You may not need all of your 2007 tuition and education amounts to reduce your provincial income tax to zero. In this case, you can transfer all or some of the unused part to one person, either your spouse or common-law partner (who would claim it on line 5864), 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 the "Transfer/Carryforward of unused amount" section of Schedule BC(S11) to calculate the provincial amount available to transfer, as well as Form T2202, Education and Textbook Amounts Certificate, T2202A, Tuition, Education, and Textbook Amounts Certificate, or TL11A, Tuition, Education, and Textbook Amounts Certificate - University Outside Canada, or TL11C, Tuition, Education, and Textbook Amounts Certificate - Commuter to the United States, to designate who can claim it and the amount the person can claim. This amount may be different from the amount calculated for the same person on your federal Schedule 11. You must enter the provincial amount you are transferring on line 20 of your Schedule BC(S11).

Tax Tip
If you are transferring an amount to a designated person, only transfer the amount this person can use. That way, you can carry forward as much as possible to use in a future year.

Complete the "Transfer/Carryforward of unused amount" section of Schedule BC(S11) to calculate the amount you can carry forward to a future year. This amount corresponds to the part of your tuition and education amounts you do not need to use (and do not transfer) for the year.

Line 5860 - Tuition and education amounts transferred from a child

You can claim this amount if the rules are met for claiming an amount 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 his or her Form T2202, T2202A, TL11A, or TL11C.

Notes
The student must have entered this amount on line 20 of his or her Schedule BC(S11). He or she may have chosen to transfer an amount that is less than the available provincial amount. The student cannot transfer to you any unused tuition and education amounts carried forward from a previous year.

If the student was a resident of another province or territory on December 31, 2007, special rules may apply. Call the Canada Revenue Agency (CRA) to determine the amount you can claim on line 5860.

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

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

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

You can claim these amounts if the rules are met for claiming the amount 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. Attach this schedule to your return.

Line 5868 - Medical expenses

The 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 2007 and must not have been claimed on a 2006 return. However, your total expenses have to be more than either 3% of your net income (line 236 of your return) or $1,877, whichever is less.

Note
If the total medical expenses claimed is more than $1,877 but less than $1,926, it is important that you enter the amount on line 5868 and on line 330 of your federal Schedule 1.

Line 5872 - Allowable amount of medical expenses for other dependants

In addition to the medical expenses claimed on line 5868, you can claim medical expenses for other dependants.

The medical expenses you use to calculate your claim on line 5872 are the same as those used to calculate your federal claim on line 331 of your federal Schedule 1. They have to cover the same 12-month period ending in 2007 and must not have been claimed on a 2006 return.

The total expenses for each dependant have to be more than either 3% of that dependant's net income (line 236 of his or her return) or $1,877, whichever is less. The maximum amount you can claim is $10,000 for each dependant.

Complete the calculation for line 5872 on the Provincial Worksheet to determine your claim.

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 26 and 27 of Form BC428.

Step 2 - British Columbia tax on taxable income

Enter on line 30 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 31 of the applicable column and complete the calculation.

Step 3 - British Columbia tax

Line 39 - 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 in the General Income Tax and Benefit Guide.

Line 47 - British Columbia additional tax for minimum tax purposes

If you have to pay federal 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 the calculation on line 47 of Form BC428. You can find information about minimum tax in the General Income Tax and Benefit Guide.

Line 49 - Provincial foreign tax credit

If your federal foreign tax credit on non-business income is less than the related tax you paid to a foreign country, you may be eligible to claim a provincial foreign tax credit.

To claim the credit, get Form T2036, Provincial or Territorial Foreign Tax Credit, from the CRA's Web site or by contacting us (see the section called If you have questions…).

Enter, on line 49 of Form BC428, the tax credit amount calculated on line 5 of Form T2036.

Receipts - Attach Form T2036 to your paper return. If you are filing electronically, keep all your documents in case we ask to see them.

Lines 51 to 57 - BC tax reduction

If your net income for the year is less than $27,675, you may be able to reduce or eliminate your British Columbia tax by claiming a BC tax reduction.

If you are preparing a return for a person who died in 2007, you can claim the tax reduction on the deceased person's final return.

Line 59 - British Columbia logging tax credit

If you have logging operations in British Columbia on which British Columbia logging tax is payable for 2007, you may be able to claim this credit.

Enter your credit (shown on Form FIN 542, Logging Tax Return of Income) on line 59 of Form BC428.

Lines 61 and 62 - British Columbia political contribution tax credit

You can claim contributions you or your spouse made in 2007 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 61 of Form BC428, and determine the amount to enter on line 62 as follows:

• For contributions of more than $1,150, enter $500 on line 62 of Form BC428.
• For contributions of $1,150 or less, complete the calculation for line 62 on the Provincial Worksheet.

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 64 - British Columbia employee share ownership plan tax credit

You can claim this credit if you acquired shares from a registered British Columbia employee share ownership plan (ESOP) at any time in 2007 (and did not claim them on your 2006 return) or in the first 60 days of 2008.

Your Certificate 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 64 of Form BC428, the "Tax credit amount" shown on Certificate ESOP 20.

Receipts - Attach Certificate ESOP 20 to your paper return. If you are filing electronically, keep all your certificates in case we ask to see them.

Line 65 - British Columbia employee venture capital tax credit

You can claim this credit if you acquired shares from a registered British Columbia employee venture capital corporation (EVCC) at any time in 2007 (and did not claim them on your 2006 return) or in the first 60 days of 2008. Your Certificate EVCC 30 shows the date you bought your shares under "Investment date."

Enter, on line 65 of Form BC428, the "Tax credit amount" shown on Certificate EVCC 30.

Receipts - Attach Certificate(s) EVCC 30 to your paper return. If you are filing electronically, keep all your certificates in case we ask to see them.

Tax Tip
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 66 - Total ESOP and EVCC tax credits

The maximum total ESOP and EVCC tax credits that you can claim on your 2007 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 2008, you can claim the tax credit on your 2007 or 2008 return or you can divide the credit between these two returns.

Write on the certificate the credit you are claiming on your 2007 return and the credit you will claim on your 2008 return. Similarly, when you file your 2008 paper return, attach a photocopy of the original certificate that shows the breakdown of your credit between your 2007 and 2008 returns. If you are filing electronically, keep your certificate in case we ask to see it.

Line 68 - British Columbia mining flow-through share tax credit

You may claim this credit if you invested in flow-through shares and BC flow-through mining 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 box 141 of Information Slip T5013A, Statement of Partnership Income for Tax Shelters and Renounced Resource Expenses , you received as a member of a partnership.

To claim the credit, get Form T1231, British Columbia Mining Flow-Through Share Tax Credit, from the CRA's Web site or by contacting us (see the section called If you have questions…).

Enter, on line 68 of Form BC428, the tax credit calculated on line 9 of Form T1231.

Receipts - If you are filing a paper return, attach a copy of Form T1231 and your T101 or T5013A slips. If you are filing electronically, keep all your documents in case we ask to see them.

Form BC479, British Columbia Credits

You may be entitled to the sales tax credit, venture capital tax credit, mining exploration tax credit, and the training tax credit even if you do not have to pay tax. To claim these credits, attach a completed Form BC479, British Columbia Credits, to your return.

Lines 1 to 13 - Sales tax credit

You can claim this credit if, on December 31, 2007, 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, 2007, 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, 2007, you were confined to a prison or a similar institution and were there for more than six months during 2007.

Do not claim this credit on a return for a person who died in 2007.

The sales tax credit is for low-income families and individuals. If you had a spouse or common-law partner on December 31, 2007, and your income for the sales tax credit (complete lines 1 to 8 using the information from your and your spouse or common-law partner's return for the year) was $25,500 or more, your sales tax credit for the year is zero.

If you were single, separated, widowed, or divorced on December 31, 2007, and your income for the sales tax credit (complete lines 1 to 5 in column 1 only, and lines 6 to 8) was $18,750 or more, your sales tax credit for the year is zero.

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.

Lines 14 to 17 - Venture capital tax credit

If you acquired shares from a venture capital corporation (VCC) or eligible business corporation (EBC), registered in British Columbia at any time in 2007 (and did not claim them on your 2006 return) or in the first 60 days of 2008, you can claim this credit up to a maximum of $60,000 in 2007. Your Certificate SBVC 10 shows the date you bought your shares under "Investment date."

If you bought VCC or EBC shares in 2007, enter, on line 14 of Form BC479, the "Tax credit amount" shown on Certificate SBVC 10.

If you bought VCC or EBC shares in the first 60 days of 2008, you can elect to claim the tax credit on your 2007 return or you can claim it on your 2008 return. If you are electing to claim the credit in 2007, enter, on line 15 of Form BC479, the "Tax credit amount" shown on Certificate SBVC 10.

Receipts - Attach the Certificate(s) SBVC 10 to your paper return. If you are filing electronically, keep all your certificates in case we ask to see them.

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

Line 16 - 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 Notice of Reassessment. Enter this amount on line 16 of Form BC479. We will show any amount available to carry forward to 2008 on your 2007 Notice of Assessment.

Lines 18 and 19 - Mining exploration tax credit

You can claim this 20% 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 2007.

Qualified mining exploration expenses incurred after February 20, 2007, in prescribed Mountain Pine Beetle affected areas are eligible for an enhanced tax credit of 10%, in addition to the 20% tax credit.

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

To claim the credit, get Form T88, British Columbia Mining Exploration Tax Credit (Individuals), from the CRA's Web site or by contacting us (see the section called If you have questions…).

If you are claiming a mining exploration tax credit allocated from a partnership, you also have to complete Form T1249, British Columbia Mining Exploration Tax Credit Partnership Schedule. Enter your proportionate share on line 22 of Form T88 and on line 19 of Form BC479.

Enter, on line 18 of Form BC479, the tax credit amount calculated on line 23 of Form T88.

Receipts - Attach Form T88 and, if applicable, Form T1249 to your paper return. If you are filing electronically, keep all your documents in case we ask to see them.

Lines 20 and 22 - British Columbia training tax credit

Individuals

You can claim this refundable tax credit if you were a resident of British Columbia at the end of the year and you met certain requirements in an eligible program administered through the British Columbia Industry Training Authority.

To claim the credit, get Form T1014, British Columbia Training Tax Credit (Individuals), from the CRA's Web site or by contacting us (see the section called “If you have questions…” at the beginning of this book).

Enter, on line 20 of Form BC479, the tax credit amount calculated on line 15 of Form T1014.

Receipts – Attach Form T1014 to your paper return. If you are filing electronically, keep all your documents in case we ask to see them.

Employers

You can claim this refundable credit in respect of salaries and wages paid after December 31, 2006 if you meet all of the following conditions:

• you were a resident of British Columbia at the end of the year,
• you carried on a business in British Columbia, and
• you employed a person who at the end of the year met certain requirements in an eligible program administered through the British Columbia Industry Training Authority.

If you were a member of a partnership other than a specified member, such as a limited partner, you can claim your proportionate share of the partnership's training tax credit.

To claim the credit, get Form T1014-1, British Columbia Training Tax Credit (Employers), from the CRA's Web site or by contacting us (see the section called If you have questions…).

Enter on line 21 of Form BC479, the tax credit amount calculated on line 4 of Form T1014-1.

Receipts - Attach Form T1014-1 to your paper return. If you are filing electronically, keep all your documents in case we ask to see them.