CPABC in Focus November/December 2014 | Page 2

Take 10. Search 13. Provincial Tax Commentary on Taxnet Pro™ In its February 18, 2014 Budget, B.C. announced the introduction of an LNG income tax. In B.C., natural gas is a Crown-owned natural resource. The government stated that the overall proposed taxation framework including all taxes will be competitive with similar jurisdictions with LNG businesses. The general proposal involves a two-tier tax with a tier-one tax rate of 1.5 per cent and a tier-two rate of up to 7 per cent, with the final rates to be determined. The LNG income tax will apply to income from liquefaction of natural gas at LNG facilities in B.C. The tier one tax rate of 1.5 per cent will apply to an operator’s net proceeds (revenue less expenses) after commercial production begins... Access this insightful content on B.C.’s two-tier tax law for liquefied natural gas (LNG). Find answers on mining, foreign tax credits, film credits and more – they’re among the multitude of areas for which you will find in-depth provincial and territorial commentary and analysis on Taxnet Pro. Better Answers, Fewer Clicks. Visit www.gettaxnetpro.com/provincial-tax to learn more. 00222SI-A46254