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Frequently Asked Questions
Questions:
What is the International Financial Activity (IFA) program?
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The IFA program provides an income tax refund to corporations and individuals carrying on international financial activities in British Columbia. Please see About IFA and Bulletin IFA 001, International Financial Activity Overview for more information. |
What qualifies as an international financial activity?
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Qualifying activities are described in Bulletin IFA 001, International Financial Activity Overview. |
What other activities are eligible for a tax refund under the IFA program?
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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.
For specific information regarding amendments to the International Financial Activity Act to expand international financial activities to include activities related to certain patents, please see Bulletin IFA 002, Life Science Patents. |
Who can claim the tax refund?
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Under the International Financial Activity Act, registered corporations and registered IFA specialists are eligible to claim a refund. Please see How to Register for IFA and Bulletin IFA 001, International Financial Activity Overview. |
Who qualifies as an IFA specialist?
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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. |
Does the specialist need to be a non-resident?
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No, but the specialist must be a non-resident at the time of entering into the contract of employment with the corporation, or have been previously registered as an IFA specialist. |
How does an IFA specialist register?
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Individuals who wish to become IFA specialists must have their employer apply to register them using an Application for Registration of an IFA Specialist (FIN 566). Please see How to Register and the Guide to Filling Out the Application for Registration of an IFA Specialist (FIN 566G). |
Is there a fee to register an IFA specialist?
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No, there is no fee for an individual specialist. The corporation pays a fee to register the corporation. |
What is the earliest date an IFA specialist can be registered?
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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
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How long can someone be registered as an IFA specialist?
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An employee can be an IFA specialist for a maximum of five years from the date of registration. During this five-year period, an IFA specialist may switch employment between registered corporations. |
How many specialists may a corporation register?
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There is no limit on the number of IFA specialists a corporation can register. |
How is the amount of the refund calculated?
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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. |
How do IFA specialists claim a refund?
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IFA specialists must complete and submit an IFA Tax Refund of an IFA Specialist form (FIN 550). Please see How to File and the Guide to Filling Out the Tax Refund of an IFA Specialist (FIN 550G). |
Where can I get IFA program forms?
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Please go to the Forms section of our website. You can enter data directly into the Adobe PDF documents from your computer, then print, sign and submit the completed form to the address on the form. |
What are the time limits on filing a claim?
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To obtain a tax refund, an IFA specialist must file a return with the Ministry of Finance within 18 months of the end of their tax year. The return will be considered complete only if all questions on the return are answered and all applicable supporting documentation is provided. |
Can a refund be obtained if no B.C. income taxes are payable?
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No. The tax refund is based on B.C. income tax paid (after deducting all refundable and non-refundable tax credits). |
Must B.C. income tax be paid prior to receiving the refund?
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Yes, prior to receiving the refund, proof must be provided that both federal and provincial income taxes relating to the taxation year have been paid in full. |
Is an IFA refund obtained by a specialist considered a benefit of employment under the Income Tax Act?
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The Canada Revenue Agency (CRA) has ruled that a refund received by an IFA specialist under the IFA program is not received by virtue of the individual's employment and does not have to be included in the individual's income under the Income Tax Act. |
How can I get a ruling or technical interpretation regarding the International Financial Activity Act?
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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.
For general questions concerning rulings and technical interpretations, please call 250-387-5754. |
How can I obtain copies of rulings and technical interpretations? |
How can I get general information on the IFA program? |
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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.
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