Refunds for logging tax

You may qualify for a refund if you:

• Overpaid your tax
• Operate a Canadian-controlled private corporation

Overpaid taxes

If you overpaid your tax, you can indicate on your next logging tax return if you want the overpayment to be refunded to you or applied to the following year’s tax. If you don’t make a choice, the overpayment will be refunded to you. The interest rate we pay on refunds is prime minus 2%.

Canadian-controlled private corporations

If you operate a Canadian-controlled private corporation that is unable to claim the full amount of the provincial logging tax credit (1/3 of the logging tax) because of the provincial small business corporation income tax rate, you may be eligible for a refund (remission) of that portion of the logging tax.

• Complete the Application for Refund of Logging Tax (FIN 196) (PDF, 250KB) to apply for a refund. 
• Refer to the Instructions for Application for Refund of Logging Tax for assistance.

The maximum refund is for each tax year is:

• $6,667 for tax years ending after March 31, 2017.  
• $4,167 for tax years ending before April 1, 2017 and after December 31, 2009
• $3,333 for tax years ending before January 1, 2010 and after December 31, 2008

The refund for the tax year is equal to: 

One third (1/3) of the logging tax paid for the tax year, less the B.C. income tax payable computed as if the only deduction allowed from tax payable for the year was the B.C. foreign tax credit.