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Provincial Sales Tax Act, Part 12 - General

Last updated on November 1, 2023

Section 226 – Designation Of Director

PST - SEC.226/Int.

References:

Act: Section 1 "director"

Interpretation (Issued: 2013/12)

Effective December 1, 2012, Bill 54, Provincial Sales Tax Act, 2012 provides under section 226 that the minister may designate as director to administer the Act a person who is appointed under the Public Service Act.

Section 227 – Delegation

PST - SEC.227/Int.

References:

Act: Section 1 "director"

Interpretation (Issued: 2013/12)

Effective December 1, 2012, Bill 54, Provincial Sales Tax Act, 2012 provides under section 227 authority for the director to delegate the director’s powers or duties under the Act.

Subsection 227(1) provides that the director may, in writing, delegate any of the director's powers or duties under the Act.

Subsection 227(2) provides that a delegation under subsection 227(1) may be to a named person or to a class of persons.

Section 228 – Information Sharing

PST - SEC.228/Int.-R.1

References:

Act: Section 1 "director", "multijurisdictional vehicle", "registrant"; Section 68 “prorating agreement”; Section 221; Section 228 “authorized person”, “confidential information”, “excluded information”, “official”, “police officer”, “US state official”; Section 228.1 “information-sharing agreement”; Section 230

PSTR: Section 102.1

Interpretation (Issued: 2013/12; Revised: 2023/10)

Effective May 11, 2023, Bill 10, Budget Measures Implementation Act, 2023, repealed and replaced section 228 as part of standardizing confidentiality provisions across tax and revenue statutes.

The new section 228 outlines how confidential information is used and disclosed. Confidential information:

  1. Relates to one or more persons and would directly or indirectly reveal their identity, and
  2. Is obtained by or on behalf of the minister for the purposes of this Act, or is prepared from such information

Section 228 also defines excluded information that is not considered confidential information. The name and address of a registrant, and whether their registration has been suspended or cancelled, is excluded information. For the purposes of excluded information, “name” includes “doing business as” names.

Many of the confidentiality provisions refer to officials. Officials are persons employed or engaged by the government, the government of another province, or Canada, or persons who occupy a position of responsibility in the service of those governments. It also includes persons who were formerly so employed, engaged, or occupied, as they may still hold confidential information.

Subsection 228(2) establishes that, except as authorized by this section, or section 221(10) in relation to liens, officials must not knowingly: provide confidential information; allow it to be provided; allow access to confidential information; or use it other than for the administration and enforcement of the Act or for a purpose for which it was provided under this section.

Subsection 228(3) provides a general prohibition against requiring officials during legal proceedings to disclose confidential information collected under the Act. However, subsection 228(4) further clarifies that subsections 228(2) and 228(3) do not apply to legal proceedings related to the administration or enforcement of provincial tax and revenue statutes, or to criminal proceedings commenced under a federal act.

Subsection 228(5) includes the main list of authorities for disclosing and using confidential information. Officials may:

  • Under subsection 228(5)(a), provide to any person confidential information to administer or enforce the Act
  • Under subsection 228(5)(b), provide to any person confidential information necessary to determine:
    1. Any tax, security, interest, penalties, or other amounts payable or that may become payable by the person under the Act
    2. Any exemptions, deductions, refunds or credits which the person is or may become entitled under the Act, or
    3. Any other amounts relevant to make those determinations
  • Under subsection 228(5)(c), provide confidential information:
    • To an official of the Ministry of Finance or an official of the federal Department of Finance to formulate or evaluate fiscal policy
    • To an official for the initial implementation of a fiscal policy
    • To an official to administer or enforce a B.C. statute that provides for the imposition or collection of a tax or duty
    • To an official to administer or enforce a federal statute or the statute of another province that provides for the imposition or collection of a tax or duty
    • To an official for the government or the federal government to compile statistical information
    • To an official to set off debts due or payable by the government
  • Under subsection 228(5)(d), provide confidential information when required by the Office of the Information and Privacy Commissioner or the Auditor General of British Columbia
  • Under subsection 228(5)(e), provide confidential information when in receipt of an order under the Family Law Act or the Family Maintenance Enforcement Act, for the purpose of child support and family maintenance 
  • Under subsection 228(5)(f), provide confidential information relating to a prorating agreement as defined in Section 68. Prorating agreements allow licence fees and taxes for multijurisdictional vehicles to be collected at the time they are registered and licensed in their home jurisdiction
  • Under subsection 228(5)(g), provide confidential information relating to a person to the person and, with their consent, to any other person. Some lien information is bound by a separate disclosure provision under section 221(10)
  • Under subsection 228(5)(h), aggregate confidential information so it is no longer identifiable
  • Under subsection 228(5)(i), provide confidential information for the purposes of sections 17 [write off of assets and uncollectable debts], 18 [extinguishment of debts] and 19 [remissions] of the Financial Administration Act
  • Under subsection 228(5)(j), use or provide confidential information for the supervision, evaluation or discipline by the government:
    1. Of an authorized person, defined as someone who is or was engaged or employed by or on behalf of the government to assist with this Act, and
    2. Related to a period during which that person was so engaged or employed
  • Under subsection 228(5)(k), provide confidential information to a police officer for investigations into whether an offence has been committed under the Criminal Code, or for the laying of an information or the preferring of an indictment, if:
    1. It is needed to determine, with respect to an official or anyone related to the official, the circumstances in which the offence may have been committed, or the identity of the person who may have committed the offence, and
    2. The official was administering or enforcing this Act and the offence is related to that administration and enforcement
  • Under subsection 228(5)(l), provide to any person confidential information to which they are legally entitled under a prescribed B.C. statute solely for the purposes for which they are entitled to it under that statute. See Section 102.1, Provincial Sales Tax Regulation, for a list of prescribed statutes.

Subsection 228(6) requires an information-sharing agreement under Section 228.1 for officials to provide confidential information under subsections 228(5)(a) to (c) and (i) to (l) to:

  • An official of a public body, as defined in the Freedom of Information and Protection of Privacy Act, other than the Ministry of Finance (i.e. information-sharing agreements are required with officials in other ministries)
  • An official of the government of Canada or the government of another province

Note that information-sharing agreements for the above information are not explicitly required with municipalities and municipal staff, because they do not fit the definition of official. However, the government may still require or enter into information-sharing agreements with municipalities for reasons other than those in this section.

Subsection 228(7) allows officials to disclose confidential information in circumstances of imminent danger.

Subsection 228(8) states that the person presiding at a legal proceeding relating to the supervision, evaluation or discipline of an authorized person may make orders to protect confidential information. Orders may include:

  • That the proceedings be held in private
  • Banning the publication of confidential information
  • Concealing the identity of the person to whom the information relates
  • Sealing the records of the proceeding

Subsection 228(9) states that in the event of any inconsistency or conflict with sections 32 and 33 of the Freedom of Information and Protection of Privacy Act, which concern the use and disclosure of “personal information” as defined in that Act, the use and disclosure provisions in this section apply.

Effective June 17, 2021, Bill 4, Budget Measures Implementation Act, 2021, added paragraph 228(1)(d.1), which establishes that information collected under the Act can be disclosed to an official or employee of the Ministry of Finance to formulate or evaluate fiscal policy.

Effective December 1, 2012 and March 18, 2013, Bill 54, Provincial Sales Tax Act, 2012 as amended by Bill 2, Provincial Sales Tax Transitional Provisions and Amendments Act, 2013 provides under section 228 the confidentiality requirements for persons who have custody of or control over information or records under the Act.

Note: Bill 2 repealed and replaced paragraph 228(1)(c) effective March 18, 2013 to update references and as a consequential amendment to the coming into force of the Family Law Act in March 2013.

Subsection 228(1) provides that a person who has custody of or control over information or records under the Act must not disclose the information or records to any other person except as follows:

(a) in the course of administering or enforcing the Act or the regulations, or another taxation enactment;

(b) in court proceedings relating to the Act or the regulations, or another taxation enactment;

(c) as provided in, or ordered under, section 239 or section 242 of the Family Law Act or section 8.2 or section 9 of the Family Maintenance Enforcement Act;

(d) under an agreement that

(i) is between the government and another government,

(ii) relates to the administration or enforcement of taxation enactments, and

(iii) provides for the disclosure of information and records to, and the exchange of similar information and records with, that other government;

(e) for the purpose of the compilation of statistical information by the government or the government of Canada.

Subsection 228(2) provides that despite subsection 228(1), the director may publish the names and addresses of registrants.

R.1 Access To Branch Information And Records Under FOIPPA (Issued: 2014/07)

On October 4, 1995, the Freedom of Information and Protection of Privacy Act (FOIPPA) was amended to allow the provisions of FOIPPA to prevail over the provisions of any other act where there are any inconsistencies or conflicts. Consequently, the confidentiality provisions of the Provincial Sales Tax Act (the Act) do not have precedence over the provisions of FOIPPA where there is an inconsistency between the Act and FOIPPA.

Section 228 of the Act addresses the manner in which the Ministry deals with requests from persons seeking information or records about another taxpayer. Because FOIPPA also deals with requests for information, these requests must be individually evaluated to determine the appropriate application of the exceptions to disclosure established in FOIPPA.

In addition, FOIPPA establishes that employees have a duty to assist applicants. Therefore, where a person requests records about another taxpayer, or requests information of a type that is contained in branch records, the staff member should advise the enquirer that the staff member cannot provide such information or records, but that a FOIPPA request can be made for the records. The provisions of FOIPPA will apply whether or not the records are released. Requests are to be made in writing and should be directed to the Program Services section of the Consumer Taxation Programs Branch.

Section 228.1 - Information-sharing Agreements

PSTA - Sec.228.1/Int.

References:

Act: Section 228 “confidential information”, “official”; section 228.1 “confidential information”, “information-sharing agreement”

Interpretation (Issued: 2023/10)

Effective May 11, 2023, the Budget Measures Implementation Act, 2023 amended the Act as part of standardizing confidentiality provisions across tax and revenue statutes, including adding information-sharing agreement requirements for confidential information.

Information-sharing agreements are agreements or arrangements (e.g. a memorandum of understanding) to share information for a purpose described in section 228(5). There are specific types of information sharing with officials that require the government to enter into information-sharing agreements, as noted in section 228(6). The minister may also choose to enter into an information-sharing agreement when they are not required to do so.

Subsection 228.1(2) establishes that the minister may enter into information-sharing agreements with public bodies, as defined in the Freedom of Information and Protection of Privacy Act, or with the governments or government agencies of Canada or provinces or other jurisdictions in Canada.

Subsection 228.1(3) states that confidential information obtained by the minister under an information-sharing agreement may only be used or disclosed for the purposes for which it was obtained under the agreement, with two exceptions under subsection 228.1(4):

  1. If the confidential information is obtained under an information-sharing agreement with the government of Canada or an agency of that government, it may also be used to administer and enforce the minister’s tax and revenue statutes
  2. Confidential information obtained under an information-sharing agreement may also be used or disclosed to administer and enforce a federal statute that provides for the imposition or collection of a tax or duty

Subsection 228.1(5) permits the Lieutenant Governor in Council to prescribe terms and conditions for information-sharing agreements.

Per subsection 228.1(6), information-sharing agreements entered before this section came into force that were not signed by the minister (e.g. agreements signed by a deputy minister) are considered to have been entered into by the minister.

Section 229 – How and When Documents are Given by Director

PST - SEC.229/Int.

References:

Act: Section 1 "director"

Interpretation (Issued: 2013/12; Revised: 2023/08)

Effective October 31, 2019, Bill 35, Miscellaneous Statutes Amendment Act (No.2), 2019, amends section 229 by repealing the Service of Notices provision and substituting with general rules for the giving of documents by the director. It provides under section 229 that documents that are sent by registered mail, email, fax, or provided by another communication method agreed to by the director and the person, will be conclusively deemed to have been given on the date they are sent or provided. 

Effective December 1, 2012, Bill 54, Provincial Sales Tax Act, 2012 provides under section 229 the manner in which, and to whom, a notice or other document under the Act is conclusively deemed to have been served.

Section 229.01 – Proof of Compliance

PST - SEC.229.01/Int.

References: 

Act: Section 1 “director”; Section 229

Interpretation (Issued: 2023/08)

Effective October 31, 2019, Bill 35, Miscellaneous Statutes Amendment Act (No.2), 2019, adds section 229.01 and establishes the rules around the proof of compliance with section 229.

Section 229.02 – Proof of Receipt

PST - SEC.229.02/Int.

References: 

Act: Section 1 “director”; Section 229

Interpretation (Issued: 2023/08)

Effective October 31, 2019, Bill 35, Miscellaneous Statutes Amendment Act (No.2), 2019, adds section 229.02 and establishes the rules around the proof of receipt of documents given by the director in accordance with section 229.

Section 229.03 – How and When Documents are Given by Minister

PST - SEC.229.03/Int.

References: 

Act: Section 1 “director”; Section 229

Interpretation (Issued: 2023/08)

Effective October 31, 2019, Bill 35, Miscellaneous Statutes Amendment Act (No.2), 2019, adds section 229.03 and establishes the rules around how documents are given by the minister to a person.

Section 229.04 – When Documents are Given to Minister

PST - SEC.229.04/Int.

References: 

Act: Section 1 “director”; Section 229

Interpretation (Issued: 2023/08)

Effective October 1, 2022, Bill 6, Budget Measures Implementation Act, repeals section 229.04. The section was repealed as a consequence of the addition of section 211.1.  Because appeals are the only document that are given to the minister, the new section 211.1 covers all documents section 229.04 previously covered.

Effective October 31, 2019, Bill 35, Miscellaneous Statutes Amendment Act (No.2), 2019, adds section 229.04 and establishes the rule for when a document is conclusively given to the minister. 

Section 229.1 - Estimates of Revenue

PST - SEC.229.1/Int.

References:

Act: Section 43

Interpretation (Issued: 2014/09)

Effective March 24, 2014, Bill 8 - Budget Measures Implementation Act, 2014 added a new section 229.1. The new section requires the minister to make estimates of revenue from three sources: 1) revenue from the section 43 tax [additional tax on lease of passenger vehicles]; 2) revenue from disposable diapers; and 3) revenue derived from the Division 11 tax on energy products.