No. 20 1st Session, 15th Legislature, A}berta 12 Elizabeth II BILL 20 A Bill to amend The Alberta Income Tax Act HON. MR. HINMAN Printed by L. S. WALL, Print~r to the Queen's Most Excellent Majesty, Edmonton, Alberta, 1964

Explanatory Note I. This Bill amends The Alberta Income Tax: Act which is

chapter 1 of the Statutes of Alberta, 1961 (2nd Session).

Section 4, subsection (3) presently reads: ..

(3) Flor the pUrposelS .of tthLs. sootdon 1lhe percenta,ge o,f the rta.x paya.ble under tlhe federal Act to be used for col'DlPuting Ithe tax payable under ,thLs

section is as follows: (

a) sixtteen pe~ cent in respect of the 1962 taxwtion year; (Ib) seventeen per cent in respeot of the 1963 taJerution year; (

c) eighteen per cent in respect o! the 1964 taxaJt.ion year." 3. A new

section is added providing for the averaging of farmers' income for tax purposes.

BILL No. 20 of 1964

An Act to amend The Alberta Income Tax Act (Assented to , 1964) HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of Alberta, enacts as follows: 1.. The Alberta Income Tax Act is hereby amended.

Section 4, subsection (3) is amended by adding the following clause: (

d) nineteen p·er cent in respect of the 1965 taxation year. 3. The following

section is added after secHon 6: Ga.

(1) Where an individual whose 0hief source of in­ come has been farming lOr fishing during a taxati.on year (in this s·ection referred to as the "year of averaging") has filed an election in accordance with subsection (1) of

section 42 of the federal Aot f'Or the year .of averaging, the tax payable under this Part for the year of averaging is an amount determined by the following rules: (a) (b) (

c) determine the amount (in this

section referred to as the "average tax") for each year in the averag­ ing period (whi0h, in this section, has the meaning given to that expression under

section 42 of the federal Act) equal to the tax that would be payable under the federal Act, within the meaning of

section 4 of this Act, if the taxable income for the year were the average net income for the year within the meaning of paragraph (

c) of sulbsection (1) of

section 42 .of the federal Act; determine the amount (in this

section referred to as the "provincial tax") for eaClh year in the averaging period equal to the tax that would be payable under this Part for the year if the tax that would be payable under the federal Act for the year, within the meaning .of

section 4 of .this Act, were the average tax for the year; deduct from the aggregate of the provincial taxes as determined under clause (

b) for the years in the averaging period the aggregate of the taxes payaJble under this Part for the preceding years'

(which, in this section, has the meaning given to that expression under

section 42 of the federal Act) ; and the remainder obtained under clause (

c) is the tax payable under this Part for the year of averaging. (2) Subsection (1) applies only in the case of an in­ dividualwho (

a) throughout the averaging peri.od (

i) resided in ALberta, and (ii) did n.ot carryon a business with a permanent estaJblishment (which, in this subsection, has the meaning given to that expression under the regulations made pursuant to

section 33 of the federal Act) outside of Alberta, or (

b) throughout the averaging per.iod (

i) resided outside of Alberta, 'and (ii) had no inc.ome other than his income from the carrying on of a business with a permanent est~blishment in Alberta and nowhere else.

(3) For the purposes .of this Act, where the tax payable by an individual under this Part for the year of averaging would, but for subsection (2), be an amount determined under subsection (1), the tax that would have been payable by the individual under the federal Act for the year of averaging, within the meaning .of

section 4 of this Act, had no election been made by him under

section 42 .of the federal Act ror that year, shall be deemed to be the tax payable under the federal Act by the individual for the year of averaging.

(4) Where this section, except subsection (3) is applic­ able to the oomputation .of a taxpayer's tax for a taxati.on year and the aggregate of the taxes payable under this Part for the preceding years exceeds the aggr'egate of the pro­ vincial taxes as determined under clause (b) .of subsection ( 1 ) for the years in the averaging peri.od, the excess shall be deemed to be an overpayment made when the notice of assessment for the year of averaging was mailed. (5) r:Dhe provisions .of this Part relating to the assessment .of tax, interest and penalties apply mutatis mutandis to an assessment whereby, f.or the purp.oses .of this section, it is determined by the Provincial Treasurer that no tax is pay­ able under this Part for the year of averaging .or that an .overpayment has been made as described in subsecti.on (4).

(6) Where an election f.or a year .of averaging filed under subsection (1) .of secti.on 42 of the federal Act has boon revoked ,by the taxpayer in accordance with subsection (4) .of

section 42 of the federal Act, subsecti.on (1) of this

section is n.ot applicable in determining the tax payalble under this Part f.or the year of averaging. 2

Section 14, subsection (1) presently reads: "14.

(1) Every corporation shaH, during the twelve months' period ~~~~l~cf~f ;;~~~~~e:fter the close of each taxaltWn year, pay to ilie (

a) on or before the last day of each of the first nine months in that period, an amount equal to one-twelfth of the rtax as esti­ mated by dt at the rat,e for the rta:xcatLon year (0 on H,s es:timated taxable income earned in the year in Alber:ta, or (ii) on its taxable income earned in 'the year in Alberta as de­ 'termined for the immediately pre<!edJing taxation year, (

b) on or before ·the last day of each of the next tWlO monrths in the J)eriod, an amount equal to one-t'hil'd of the l'emainder of ilie ,tax payable as estimated by iJt on Us taxable !income earned in the year in Alberta at rbhe rate for the year, and (

c) on or before the last day of the period, the remainder of 'the tax as estimated under seotion 9.". 3

5. Commencement of Act. 4

(iii) the expression "one-twelfth" in clause (

a) of subsection (1) of

section 14 as enacted by this

section shall be read as "one-eleventh", and (iv) the expression "eleventh" in clause (

b) of sub­ section (1) of

section 14 as enacted by this sec­ tion shall be read as "tenth". 5. This Act comes into force on the day upon which it is assented to. 4

No. 20 FIRST SESSION FIFTEENTH LEGlSLA TURE 12 ELIZABETH II 1964 BILL

An Act to amend The Alberta Income Tax Act Received and read the First time ........................ . Second time ...... . Third time ........ . HON. MR. HINMAN Title: 1964 (15th, 1st) Bill 20,

An Act to amend The Alberta Income Tax Act