Taxation

Taxation is the imposition and collection of taxes by government. A BC business typically deals with federal and provincial income tax, the federal goods and services tax (GST), BC provincial sales tax (PST), payroll deductions, property tax and property transfer tax. Each tax has its own rules about who must register, file and pay.

How BC law treats it

BC personal and corporate income tax is imposed under the Income Tax Act, RSBC 1996, c 215 but administered and collected by the Canada Revenue Agency along with federal tax under a tax collection agreement. BC directly administers PST, property transfer tax and certain other provincial taxes.

What it means for your business

Choosing the right structure, such as a corporation or a holding company, and registering for GST and PST on time are key tax decisions for a new business.

Risks and common mistakes

Collecting GST or PST and not remitting it, or failing to remit payroll deductions, can lead to penalties and personal liability for directors.

Browse the full Fulcrum Law Dictionary for related terms.

General information about British Columbia and Canadian law, current to October 2026. It is not legal advice.