Effective January 1, 2006, the IFA program includes refunds of B.C. corporate income taxes on income from commercialization of intellectual property in the form of life science patents.

Corporations must complete and submit an Application for Registration of a Corporation form (FIN 574), together with all applicable attachments and a cheque or money order in the amount of $5,000 made payable to the Minister of Finance.

If the corporation is refused registration, we will refund $4,000. Please see How to Register and the Guide to Filling Out the Application for Registration of a Corporation (FIN 574G).

A corporation will qualify under the IFA program if it:

• was incorporated in Canada and its incorporation has not since been continued (transferred or emigrated) outside of Canada
• has a permanent establishment in British Columbia
• is not exempt from income tax under the Income Tax Act (B.C.)
• pays an application and registration fee of $5,000
• establishes and carries on an international financial business within 90 days of registration
• establishes and maintains membership in the International Financial Centre British Columbia within 90 days of registration

Please see How to Register and Bulletin IFA 001 for further information.

Where two or more corporations amalgamate and at least one of the corporations was registered* under the IFA program, the newly formed corporation must re-register within 90 days of the date of the amalgamation or within a later period, as approved by the commissioner.

The effective date of the registration would usually be the day after the amalgamation.

Please see How to Register for further information.

*If two or more registrants amalgamate, the newly formed corporation is automatically registered upon proper notice of the amalgamation (see above).

The IFC BC is a non-profit society, established in 1986, with a mandate to encourage the growth of the financial services sector of the B.C. economy.

A corporation registering under the IFA program must establish and maintain membership in the IFC BC within 90 days of the date of registration.

In addition to continuing to meet the requirements necessary for registration, a corporation must also:

• continue to carry on an international financial business
• continue to maintain membership in the IFC BC
• continue to maintain a permanent establishment in B.C.
• keep its books and records in B.C.

An IFA specialist is an employee of a registered corporation who:

• at the time of applying to register as an IFA specialist, specializes in international financial activities other than life science patent activities, back-up office services or administrative support services
• was a non-resident of Canada immediately before entering into a written employment contract with the corporation, or was previously registered as an IFA specialist
• is required by the terms of the written contract of employment to spend at least 70% of working time performing eligible international financial activities for the corporation

Please see How to Register for IFA, Bulletin IFA 001, International Financial Activity Overview and Bulletin IFA 002, Life Sciences Patents for more information.

The earliest date an IFA specialist can be registered under the International Financial Activity Act is the later of:

• the date the corporation applies for registration of the individual
• the date the individual begins employment with the corporation
• the date the corporation becomes registered for the IFA program by the Ministry of Finance.

Registered corporations can claim a refund of up to 100% of B.C. corporate income tax paid on income earned from eligible international financial activities. For income earned from the commercialization of intellectual property in the form of life science patents, registered corporations can claim a refund of up to 75% of B.C. corporate income tax paid, up to a maximum refund of $8 million per year.

IFA specialists can claim a refund of up to 75% of B.C. income tax paid on net employment income earned from eligible international financial activities.

Please see How to File, Bulletin IFA 001, International Financial Activity Overview and Bulletin IFA 002, Life Sciences Patents for more information on calculating the IFA refund.

No. The tax refund is based on B.C. income tax paid (after deducting all refundable and non-refundable tax credits).

To request a technical interpretation or advance ruling, free of charge, write to:

Director, Income Tax Advisory and Intergovernmental Relations
Income Taxation Branch
Ministry of Finance
PO BOX 9444 STN PROV GOVT
VICTORIA BC  V8W 9W8

Fax: 250-356-9243

All written requests will receive a prompt acknowledgement and a contact who can provide updates on the progress of the ruling or interpretation.

Please see our Rulings and Technical Interpretations page.

If you have further questions after reviewing the information available on our website, please call 250-953-3082.

Please note that government offices may be contacted toll-free from anywhere in the province by calling 1-800-663-7867, or by calling 604-660-2421 in the Greater Vancouver area, and requesting your call be transferred to the person or office you wish to contact.

Our office has not received your payment(s) for fees or taxes owing.

The province may initiate the following actions:

• place a notice of Crown Debt on your property
• issue a demand on your wages, bank account or other accounts
• set off funds owed to you by the provincial or federal government
• file a Certificate of Judgement in British Columbia Supreme Court
• seize and sell your assets