Logging tax frequently asked questions
The following will help answer your questions about the logging tax.
If I take down trees on my property and sell them or the wood from them, is that considered "logging income"?
Yes. There is no minimum amount of income or number of trees for it to be considered "logging income".
If I have a loss from logging, do I have to file a logging tax return?
Yes. If you have logging operations, you must file a logging tax return regardless of whether you have earnings or losses.
Do I have to report my logging income on my logging tax return as well as my income tax return?
Yes. Logging tax is separate from income tax. Logging operations must be reported on both your logging tax return and your income tax return. The amount of logging tax you pay is usually fully deductible as a credit against your income taxes. For more information on claiming the logging tax credit, contact the Canada Revenue Agency.
What happens if I forget to file a logging tax return?
You should make a voluntary disclosure to avoid paying penalties. A taxpayer who makes a voluntary disclosure of a tax liability, or is a first-time filer, will not be charged a penalty if the taxpayer meets the conditions outlined in Voluntary Disclosure.
For the respective tax year or years, all penalties associated with late or deficient tax payments and non-filing of the tax return will be waived.
Why do I have to send in my income tax return and financial statement to the provincial government when I already sent it to the Canada Revenue Agency (CRA)?
The province does not have copies of the information you provide to the CRA. Therefore, we require copies of these documents with your logging tax return.
Why do I need to provide my driver's license number on the new logging tax return?
We collect personal information on this form for the purposes of administering the Logging Tax Act. We use the driver's license number as proof of identity to ensure we are reviewing and assessing the correct information for the correct individual.
I logged only once, and the Income Taxation Branch keeps sending me logging tax returns. What should I do?
If you do not intend to log again, you may write to us and request that your logging tax account be deactivated.
If you resume logging operations in the future, you must notify us and file an annual return.
My accountant called the logging tax section and was unable to get any information about my account. Why?
We cannot disclose information about your account to anyone other than yourself unless we have a signed Authorization or Cancellation of a Representative (FIN 146) (PDF) from you on file.
I received a reassessment of my corporation’s income tax for a year in which I filed a logging tax return. Is there anything I need to do?
If you are issued a Notice of Reassessment, Notice of Assessment, or an additional assessment from the Canada Revenue Agency that changes an amount relevant to the calculation of logging tax payable, you must notify us within 90 days of receiving that notice by forwarding a copy, along with the amended logging tax return to the mailing address below. Notifications not received within the 90 days may be rejected.
Ministry of Finance
Income Taxation Branch
PO Box 9444 STN Prov Govt
Victoria B.C. V8W 9W8