Appendices

Appendix A: Glossary

Accounts receivable/debt — amounts claimed by the Province against debtors.

Billing — the act of notifying an individual or business of an amount owed to the Province.

Collections — remedial actions employed by the Province to effect a payment from an individual or business on an overdue account receivable.

Incremental revenue — monies identified by, or remitted in response to, audit and enforcement activities.

Overdue — an account receivable for which no monies have been remitted and is considered overdue according to the legislation at issue.

Recoveries — monies recovered in the course of administering accounts receivable.

Refund — return of monies remitted in error or in excess of an account receivable.

Remittance — the payment of monies to meet a financial obligation.

Revenue — all monies received to meet financial obligations or identified as owed to the Province.

Review and audit — an examination of an individual's or business' financial records or accounts to ensure that the amounts owed have been collected and remitted, or paid as required. This can vary from the review of grants, tax expenditure and exemptions and compliance with legislation, to the examination of financial records and legal documents.

Small business — is a business that has fewer than 50 employees or is operated by a person who is self-employed without paid help.

Tax expenditure — the reduction in tax revenues that results when government programs or benefits are delivered through the tax system rather than reported as budgetary expenditures. Tax expenditures are usually made by offering special tax rates, exemptions or tax credits to program beneficiaries.

Voluntary compliance — when taxpayers meet their financial obligations without requiring the Province to effect payment.

Appendix B: Legislation Administered by the Ministry

The Minister of Small Business and Revenue and Minister Responsible for Regulatory Reform is charged with the administration of the following enactments, presented alphabetically.

Assessment Act

Logging Tax Act

Assessment Authority Act

Corporation Capital Tax Act

Esquimalt and Nanaimo Railway Belt Tax Act

Home Owner Grant Act

Hotel Room Tax Act

Income Tax Act

Indian Self Government Enabling Act

Insurance Premium Tax Act

International Financial Activity Act

Land Tax Deferment Act

Medicare Protection Act ss.5(1)(b), 7(5), 8(4), 8.1, and 32

Mining Tax Act

Motor Fuel Tax Act

Petroleum and Natural Gas Act ss. 74-77

Property Transfer Tax Act

Sechelt Indian Government District Home Owner Grant Act

Social Service Tax Act

Taxation (Rural Area) Act

Tobacco Tax Act

Tourism Accommodation (Assessment Relief) Act

The Minister of Small Business and Revenue and Minister Responsible for Regulatory Reform is charged with the administration of the following enactments, in areas related to revenue management processes only.

Forest Act

Forest and Range Practices Act

Forest Practices Code of British Columbia Act

Forest Stand Management Fund Act

Ministry of Forests Act

Mineral Land Tax Act

Mineral Tax Act

Petroleum and Natural Gas Act

Range Act

School Act

South Moresby Implementation Account Act

Wildfire Act

Appendix C: Service Delivery

Small Business

As many different ministries and levels of government have programs and services that impact the small business sector, the Ministry of Small Business and Revenue works with these organizations and other partners to support small business start-up and growth.

The Ministry, on behalf of the Province and in partnership with the federal government, jointly funds Small Business BC, a not-for-profit organization providing support to current and prospective small business operators in British Columbia. Service delivery outcomes are determined through an annual contribution agreement.

Regulatory Reform

The Ministry is responsible for developing and implementing the Regulatory Reform Strategy for British Columbia. Government ministries annually identify regulatory reform activities and report on performance in their Service Plan and Annual Service Plan Report. The Ministry of Small Business and Revenue is responsible for providing strategic leadership in regulatory reform, providing expertise and advice to ministries to support the successful implementation of regulatory reform initiatives, building capacity for regulatory reform, developing regular reports on the progress of regulatory reform throughout government and ensuring government-wide targets are met.

Tax Administration and Revenue Management

The Ministry is the principal revenue collector for the Province, with administrative responsibility for $20.6 billion in 2005/06 or approximately 58 per cent of all provincial revenues. The Ministry's strategic focus is on promoting voluntary compliance with the financial obligations resulting from the legislation it administers and that defines the Ministry's roles and responsibilities. Successful tax administration and revenue management depend on the Ministry's information and education programs to support voluntary compliance, balanced by compliance, audit and debt collection activities.16

The Ministry represents British Columbia in its relationship with the Canada Revenue Agency, which administers the Province's personal and corporate income taxes under the authority delegated to the Government of Canada through the British Columbia-Canada Tax Collection Agreement. This arrangement allows a single administration and collection agency for provincial corporate and personal income taxes, thereby increasing efficiency and simplicity for the Province and taxpayers. Annually, the Ministry and Canada Revenue Agency jointly develop a detailed British Columbia Work Plan. The work plan identifies both ongoing and one-time initiatives, accountabilities and, where appropriate, timelines and performance measures. This work plan and the British Columbia-Canada Tax Collection Agreement help to ensure revenue due to the Province is identified and received.

The Ministry also works with the Canada Border Services Agency, with respect to the Social Service Tax Act17 and the Tobacco Tax Act it administers on behalf of the Ministry. The agency identifies and collects taxes due on purchases brought into the province by British Columbians. The Ministry manages this relationship through an administrative agreement.
16  Refer to Appendix B for a list of legislation administered by the Ministry of Small Business and Revenue.
17  Commonly known as the Provincial Sales Tax or PST.

A Centre of Excellence for Tax Administration and Revenue Management

The Ministry of Small Business and Revenue provides selected revenue management services to other ministries. The Ministry has implemented processes and accountabilities for transferring accounts receivable to the Ministry to ensure continued high levels of service to its client ministries and their customers. The Ministry also collects taxes and fees for other agencies such as the Greater Vancouver Transportation Authority, local service areas (for example, regional improvement districts) and local governments throughout the province. The Ministry's relationship with these clients is managed through transfer and service agreements, and memoranda of understanding.

In late 2004, the Ministry entered into an agreement with EDS Advanced Solutions Inc. for the management and delivery of information and technology services, and to work with the Ministry to build and operate a centre of excellence for revenue management. The Ministry manages the agreement through a benefits and performance-based service contract structured to ensure performance and service levels are sustained and improved.

Property Assessment and Review Processes

The Ministry provides advice on strategic property assessment policy, participates in related inter-Ministry and inter-agency processes, and reviews and develops legislative and regulatory changes and amendments related to property assessment.

The Minister of Small Business and Revenue is accountable for BC Assessment, the Property Assessment Review Panel and the Property Assessment Appeal Board. The Minister is charged with the administration of the Assessment Act and the Assessment Authority Act.

BC Assessment operates as an independent, provincial Crown corporation governed by a Board of Directors. For more information, view online at http://www.bcassessment.bc.ca.

The Property Assessment Review Panels and Property Assessment Appeal Board operate under the Assessment Act. The panels provide property owners in British Columbia with a first level of appeal in an accessible, affordable and equitable forum. Year-end reviews identify opportunities for improvement to process and quality of customer service.

The Property Assessment Appeal Board operates as the second level of appeal for property owners who disagree with the assessment of their property. The Board's objectives are to resolve appeals justly and consistently, in accordance with the principles of procedural fairness and natural justice, and to complete appeals as quickly as possible, at minimum cost to all parties. The Board reports on performance to the Minister through quarterly and annual reports.

Appendix D: Ministry Organizational Structure
and Key Responsibilities

Link to Organization Chart. LINK TO LARGER VERSION

Appendix E: Ministry Contributions to Government's Five Great Goals

The Ministry's activities support the achievement of government's Five Great Goals in the following ways.

Five Great Goals Specific examples of how the Ministry supports the Five Great Goals
Make British Columbia the best educated, most literate jurisdiction on the continent. • Work with municipalities and local service areas to collect property taxes that pay for schools and libraries in communities across the province.
• Administer a number of tax credits and exemptions to support literacy and access to education. For example, books and qualifying publications for educational, technical, cultural or literacy purposes are exempt of the provincial sales tax.
• Administer tax credits for education and tuition.
Lead the way in North America in healthy living and physical fitness. • Collect Medical Services Plan premiums to assist in funding health care.
• Administer tax exemptions to support British Columbians in living healthier, more active lives. For example, provincial sales tax exemptions are allowed for bicycles, and non-prescription drugs and vitamins.
Build the best system of support in Canada for persons with disabilities, those with special needs, children at risk, and seniors. • Administer tax benefit programs and exemptions on certain products providing support to seniors and persons with disabilities or special needs. Programs and exemptions include, provincial sales tax exemptions on equipment and devices designed for use by persons with disabilities, tax refunds for motor fuel used for vehicles used by persons with disabilities, and property tax deferment and additional home owner grants for seniors and persons with disabilities.
Lead the world in sustainable environmental management, with the best air and water quality, and the best fisheries management, bar none. • Administer numerous tax exemptions for environmentally friendly products and projects. For example, some alternate fuel vehicles, such as electric hybrid vehicles, are eligible for provincial sales tax exemption, as are prescribed materials and equipment used to conserve energy.
Create more jobs per capita than anywhere else in Canada. • Work with other ministries, other levels of government, partners and the small business community to identify and implement initiatives supporting small business.
• Develop and implements a regulatory reform strategy that encourages prosperity, innovation and opportunity to increase British Columbia's economic and business competitiveness.
• Ensure streamlined, simplified and fair tax administration to support a competitive business environment in comparison to other jurisdictions.

Appendix F: Taxpayer Fairness and Service Code — Service Standards

Twenty-one service excellence standards have been identified18 to monitor the Ministry's progress in meeting the commitments set out in the Taxpayer Fairness and Service Code (3rd Edition). Over time, the Ministry may add or improve service standards based on consultation with the small business community and feedback from taxpayers.

Eighteen of the 21 service excellence standards have targets for 2007/08. Baseline data for the remaining three will be collected in 2007/08. Targets reflect the Ministry's commitment to continuous improvement or, where appropriate, maintaining existing high levels of performance. The Ministry monitors performance using existing ministry business information systems.

A standard is considered 'met' if, over the twelve months of the fiscal year, the performance meets or exceeds the established target. The following table lists the service excellence standards and their performance targets.
18  Prior to determining the Ministry’s service excellence standards, research was conducted to review similar work in other jurisdictions. The Ministry did not adopt specific standards due to differences in business processes, technology and level of resources applied. However, the Ministry made efforts to include common service aspects. Based on this research, standards were developed in partnership with several small business organizations to reflect those that their community felt were most important.

 

Service Aspects Service Standards1 2006/07 Target 2007/08
Target		 2008/09
Target		 2009/10
Target
Provincial Sales Tax seminars (1) Offer at least 60 provincial sales tax seminars annually throughout all regions of British Columbia. New in 2007/08 60 seminars 65 seminars 70 Seminars
(2) Ensure seminar client satisfaction of at least 90%. New in 2007/08 90% 90% 90%
Inquiries and rulings (3) Respond to general email inquiries regarding sales, hotel, fuel and tobacco tax sent to CTBTaxQuestions@gov.bc.ca within 2 business days of receiving all of the necessary information. Establish baseline 85% 87% 90%
(4) Respond to complex email inquiries and written rulings on sales, hotel, fuel or tobacco tax issues within 20 business days of receiving all of the necessary information. We will contact you if the response will take longer because it is unusually complex. 77% 77% 78% 80%
Account registrations and clearances (5) Register sales and hotel tax accounts within 2 business days of receiving all of the necessary information. 90% 90%2 90%2 90%2
(6) Respond to requests to confirm if any sales or hotel taxes are owed by the business to be bought within 5 business days of receiving all of the necessary information. 85% 85%2 85%2 85%2
Refunds (7) Process sales, hotel, fuel or tobacco tax refunds within 30 calendar days of receiving all of the necessary information. 85% 87% 89% 91%
Audit (8) Review the audit process and Taxpayer Fairness and Service Code rights before starting an audit at the place of business or representative's office. 100% 100% 100% 100%
(9) Ensure satisfaction with sales, hotel, fuel or tobacco tax audit completion time. 75% Baseline 80% 85% 90%
(10) Conclude sales, hotel, fuel or tobacco tax audits within 20 business days of agreement with the audit results. New in 2007/08 Establish baseline TBD TBD
(11) Respond to concerns about sales, hotel, fuel or tobacco tax audit results within 20 business days of receiving all of the necessary information. New in 2007/08 Establish baseline TBD TBD
(12) Ensure sales, hotel or tobacco tax audit satisfaction of at least 90%. New in 2007/08 90% 90% 90%
Correspondence (13) Respond to correspondence sent to the Minister, Deputy Minister and Assistant Deputy Minister within 14 business days of receipt. Establish baseline 95% 97% 98%
Accessibility (14) Receive email anytime and be accessible by telephone from 8:30 am to 4:30 pm., Monday through Friday (except holidays). 100% 100% 100% 100%
(15) Provide walk-in service at the Ministry's public offices in Victoria and Vancouver from 8:30 am to 4:30 pm., Monday through Friday (except holidays). 100% 100% 100% 100%
(16) Provide 100% accessibility to OneStop Business Registry kiosks at our public offices in Victoria and Vancouver during normal working hours. New in 2007/08 100% 100% 100%
(17) Have helpful information about the Ministry's programs available on the Ministry website 24 hours a day, every day.3 99.7% 99.7% 99.7% 99.7%
Reviews (18) Deputy Minister information reviews — provide written decision within 30 business days of receiving all of the necessary information. Establish baseline 100% 100% 100%
Appeals (19) Provide a written decision on issues appealed to the Minister within the following average annual response times. 5 months 4.5 months 4.5 months 4.5 months
(20) Contact appellant by phone or in writing to discuss the appeal and to provide an opportunity to submit new or additional information to support the position. New in 2007/08 98% 98% 98%
International Fuel Tax Agreement (IFTA) (21) Provide a decision on initial IFTA licence applications within 7 business days of receiving all of the necessary documents and/or payments. New in 2007/08 Establish baseline TBD TBD
1  The Taxpayer Fairness and Service Code service excellence standard dealing with Service BC-Government Agents was provided to inform customers that information about ministry programs is available from Service BC. This was excluded from the above list as the Ministry is not accountable for service provided by them, but the Ministry ensures they have the information required to fulfill this commitment.
2  A significant increase in account registrations and clearances are anticipated due to the upcoming 2010 Olympic and Paralymic Winter Games in Vancouver. Targets have been set to maintain the same high level of performance with increased volume.
3  Targets are based on a standard of 24/7 service, which excludes scheduled downtime for system maintenance on Sundays between 6:00 a.m. and 9:00 a.m.
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