Books and records must be kept at your place of business (for example, your office) in B.C. If you don’t have a place of business in B.C., contact us to discuss an acceptable alternative location.
Books and records could include:
- Financial statements, such as income statements and balance sheets, including any schedules of capital acquisitions or disposals
- Records, such as general ledgers, purchase and sales journals, cash receipts, disbursement journals and insurance policies
- Copies of tax or partnership returns and supporting documentation
- Contracts, such as partnership agreements, amalgamation agreements, purchase and sale agreements, and management and service contracts
- Documents to support transactions that are subject to transfer pricing rules
- Regulatory approval documentation, such as permits or licences to construct and operate LNG facilities
- Other documentation, such as sales and purchase invoices, sales and purchase orders, partnership allocations and detailed journal entries with supporting documentation
Keep track of these records using standard accounting practices.
Find out what types of books and records you need to keep:
Certain costs incurred before you begin your operations may be included in your first taxation year. Keep these records because you may need to provide supporting documentation for these costs.
See what qualifying property or expenditures you can elect to include in your first taxation year.
Once you begin liquefaction activities at your LNG facility, you need to keep track of the following:
- Additions to and deductions from your capital investment account (keeping tangible and intangible property separate)
- Revenue and expenses from liquefaction activities
- Additions to and deductions from your net operating loss account and tax pool balances
- Any arm's length and non-arm's length transactions and self dealings, including documentation to support transfer prices
- LNG income tax returns filed and any payments made
- Partnership returns filed
- Documentation showing how you calculated:
If you close your LNG facility, you must keep records relating to:
- Any reclamation, remediation and restoration activities
- Your final capital investment account adjustments
- Your final LNG income tax return
- Regulatory notices or approvals for closure
You may be eligible for a closure tax credit for costs relating to the reclamation and remediation of your LNG facility site.