British Columbia Overhauls Bulletin on Penalties and Interest

British Columbia has completely rewritten Bulletin CTB 005, “Penalties and Interest”, which discusses the application of penalties and interest to assessments raised under the Carbon Tax Act, Motor Fuel Tax Act, Provincial Sales Tax Act and Tobacco Tax Act.

This document includes an overview, outlining why assessments are issued, definitions of common terms and expressions, and explains how interest is applied to tax assessments and late or under payments/remittances.

Penalties may be applied differently depending on whether the error is unintentional, known/repeated, wilful, or fraudulent. In addition, the province explains their policy for issuing warning letters related to non-compliance involving tax returns and errors discovered during audits.

Lastly, the conditions and procedure for making a voluntary disclosure are outlined.