British Columbia Low Income Climate Action Tax (BCLICATC)

The Province of British Columbia has introduced a new tax credit for low-income earners under section 8.1 of the British Columbia Income Tax Act. This refundable credit will be issued in conjunction with GST refunds by the Canada Revenue Agency on behalf of the province. The first cheques are to be issued in early October 2008. These cheques will be mailed to trustees in cases where recipients are bankrupt. The Office of the Superintendent of Bankruptcy (OSB) has been asked for its position regarding the nature of the BCLICATC amounts in a bankruptcy context.

It is the view of the OSB that this tax credit amount represents property under section 67(1)(c) or (d) of the Bankruptcy and Insolvency Act (BIA) that is divisible among the creditors. Please note that the treatment of the GST-related portion of these cheques has not changed, and remains as set out in section 67(1)(b.1) and Rule 59 of the BIA. Cheques that include amounts relating to both the GST and the BCLICATC will clearly identify the dollar amounts pertaining to each.

Further information in English may be obtained on the Canada Revenue Agency website.