Instructions for application for refund of logging tax (FIN 196)

You may complete and file this application if:

• You are a Canadian-controlled private corporation throughout a tax year that ends after March 31, 2017
• You are unable to claim the full B.C. logging tax credit as a result of the provincial small business corporation income tax rate in that year
• You meet all the eligibility requirements

If the tax year end is before April 1, 2017, contact us for forms available for previous years.

The following information provides detailed instructions for completing each line of the application form.

Identification information (Lines 000 to 061)

Line 002 - Full Legal Name

If your business is a corporation under the Business Corporations Act or other legislation, enter that name as it appears on your incorporation certificate.

Line 011 - Mailing Address 

Only complete this field if:

• this is the first time you’re filing the tax return, or
• your address has changed and we don’t have your current address on file

Enter the street number and name, or PO Box, city, province and postal code. 

To authorize a representative to act on your behalf you must complete an Authorization or Cancellation of a Representative (FIN 146) (PDF, 260KB). This form allows us to release information to your representative.

Line 020 and 024 - Telephone Number & Email Address

Please complete these fields so that our office may contact you to verify information on your account. 

To authorize a representative to act on your behalf you must complete an Authorization or Cancellation of a Representative (FIN 146) (PDF, 260KB). This form allows us to release information to your representative.

Line 001 - Business Number

Enter the nine-digit Business Number (BN) that identifies your business for income tax purposes.

Line 003 - Account Number

If you know your eight-digit Logging Tax account number enter it, otherwise leave the field blank. 

Line 060 and 061 - Start and End of Tax Year

Enter the start and end date of the tax year for which this application is being filed. The start and end date must coincide with the federal income tax year.

Eligibility requirements (Lines 090 to 093)

The corporation must answer yes to each question on lines 090 to 093 to be eligible for a refund of logging tax.

Line 093

If reassessed, the corporation agrees to return the amount of any excess refund. The corporation must agree to return the refund, or part of the refund, of logging tax to the government if the corporation is subsequently reassessed under either the Income Tax Act or Logging Tax Act and that reassessment changes the amount of the refund of logging tax for the year.

Refund calculation (Lines 770 to 895)

The information required to complete the refund calculation can be found on T2 SCH5, Tax Calculation Supplementary – Corporations in the T2 Corporation Income Tax Return and the Logging Tax Return of Income for the tax year. The information to be provided is based on the amounts as reported and assessed for the tax year.

The refund of logging tax is equal to the lesser of:

• The portion of the B.C. logging tax credit that could not be claimed as a result of the small business deduction rate, or $6,667, the maximum refund for tax years ending after March 31, 2017

Line 770 - Logging tax payable

Enter the amount from line 770 of your Logging Tax Return of Income (FIN 542S) or Logging Tax Return of Income for Processors (FIN 542P), whichever applies.

Line 771 – 1/3 of logging tax payable

Multiply the amount on Line 770 by 1/3 to calculate the maximum B.C. logging tax credit.

Line 772 – British Columbia income tax before credits

Enter the amount you reported on line 240 of the T2 SCH5 for the year.

Line 773 – Recapture of British Columbia SR&ED tax credit

Enter the amount you reported on line 241 of the T2 SCH5 for the year.

Line 774 – British Columbia foreign tax credit

Enter the amount you reported on line 650 of the T2 SCH5 for the year.

Line 775 – Adjusted British Columbia income tax payable

Add lines 772 and 773 and deduct line 774.

Line 776 – Line 771 minus line 775

To compute the unclaimed amount of your B.C. logging tax credit, deduct the amount on Line 775 from the amount on Line 771. If the amount you calculate is negative, the B.C. logging tax credit that could not be claimed because of the small business rate is nil. Enter zero on line 776, you are not entitled to a refund of logging tax paid.

Line 895 – Net allowable refund

Enter the amount from either Line 776 or the maximum refund for the year, whichever is less.

• The maximum refund for the year is $6,667

This is your refund of logging tax for the tax year.

Required supporting documentation

Line 900

You must attach a copy of the federal income tax Corporation Notice of Assessment for the year. Additional documents may also be requested to support your application for refund of logging tax.

Certification (Lines 950 to 955)

The return must be signed and dated by the taxpayer or an authorized signing authority of the taxpayer.