Bill 49 — Second Session, 21St Legislature, 36 Elizabeth Ii the Legislative Assembly of Alberta Bill 49 Tax Statutes Amendment Act, 1987 the Provincial Treasurer (Legislature 21, Session 2)

L21 S2 3096

Alberta — Bills

1987 BILL 49 Second Session, 21st Legislature, 36 Elizabeth II THE LEGISLATIVE ASSEMBLY OF ALBERTA BILL 49 TAX STATUTES AMENDMENT ACT, 1987 THE PROVINCIAL TREASURER First Reading Second Reading ^.~ - —.. Committee of the Whole • •• • ' ^ .. < .^. -, Third Reading Royal Assent

Bid 49 BILL 49 1987 TAX STATUTES AMENDMENT ACT, 1987 (Assented to , 1987) HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Alberta, enacts as follows: PARTI ALBERTA CORPORATE INCOME TAX ACT 1 The Alberta Corporate Income Tax Act is amended by this Part. 2(1)

Section 1 is amended (

a) by adding the following after subsection (2);

(3) If at any time an amount payable to a corporaUon by the Provincial Treasurer under this Act is applied by the Prov incial Treasurer to reduce a liability of the corporation under this Act, the amount is an amount paid at that time on ac count of the liability of the corporation. (

b) by adding the following after subsection (3);

(4) Interest computed at a prescribed rate under

section 26.4(4),

section 38.1(1),

section 39(1), (1.1), (2) or (6),

section 47(4), (4.3)(

b) or (5)(

b) or

section 91 shah be compounded daily, and, if interest is computed on an amount under any of those provisions and is unpaid on the day it would, but for this subsection, have ceased to be computed under that pro vision, interest at the prescribed rate shall be computed and compounded daily on the unpaid interest from that day to the day it is paid.

(2) Subsection (l)(

a) applies to taxation years beginning after a date prescribed by regulation made by the Lieutenant Governor in Council.

(3) Subsection (l)(

b) applies after a date prescribed by regulation made by the Lieutenant Governor in Council, and interest computed in re spect of a period ending on or before that date shad be compounded after that date. 3(1)

Section 2(10) is repealed and the following is substituted; (10) Subsections 248(7) and (11) of the federal Act do not apply for the purposes of this Act. (2) Subsection (1) applies after December 31, 1986.

Explanatory Notes 1 This Part will amend

chapter A-17 of the Revised Statutes of Alberta 1980. 2

Section 1 presently reads in part: 1(1) In this Act and in the application of the provisions of the federal Act and the regulations made under that Act that are by this Act made applic able, each of the

interpretations contained in

Part XVII of the federal Act cipply for the purposes of this Act, except for those defined in subsection (2)(f), (g), (

h) and (

i) of this Act and the definition of "regulation" contained in subsection 248(1) of the federal Act.

(2) In this Act and in the application of the provisions of the federal Act and regulations made under that Act that are by this Act made applicable for the purposes of this Act, (a) "Alberta allocation factor" means the Alberta allocation factor determined in accordance with Division I of

Part 4; 3

Section 2(10) presently reads: (10) Subsection 248(7) of the federal Act does not apply for the purposes of this Act. Explanatory Notes

4(1) The following is added after

section 4: 4.1(1) Subject to subsection (2),

section 1, except subsections (2)(g), (3) and (4), and sections 2 to 85 shall be applied as if

Part 9 were not included in this Act.

(2) A liability of a corporation that may be reduced by the ap plication of an amount to the liability by the Provincial Treasurer under

section 26.4 or 47 includes a liability under

Part 9. (2) Subsection (1) applies to 1987 and subsequent taxation years. 5(1)

Section 11 is amended (

a) in subsection (1) by striking out "subsection (2)" and substi tuting "subsections (1.1) and (2)"; (

b) by adding the following after subsection (1);

(1.1) In the apphcation of subdivision e of Division B of

Part I of the federal Act, a reference to amounts deducted under subsection 127(5) of the federal Act includes the amounts deemed to have been deducted under that subsecfion by sub

section 127.1(3) or 192(10) of the federal Act. (2) Subsection (1) applies with respect to expenditures made after No vember 30, 1985. 6(1)

Section 20 is amended (

a) in subsection (5) by striking out ", by purchase or otherwise, including an acquisition as a result of an amalgamation of 2 or more corporations," and substituting "by purchase, amalgama tion, merger, winding-up or otherwise"; (

b) in subsection (5) by striking out "property of the predecessor used by him in carrying on in Canada any of the businesses mentioned in subparagraphs 66(15)(h)(

i) to (vu) of the federal Act" and substituting "Canadian resource properties of the pred ecessor,"; (

c) in subsection (6) by striking out ", by purchase or otherwise, including an acquisition as a result of an amalgamation of 2 or more corporations," and substituting "by purchase, amalgama tion, merger, winding-up or otherwise"; (

d) in subsection (6) by striking out "property of the first successor corporation used by it in Canada in carrying on any of the busi nesses mentioned in subparagraphs 66(15)(h)(

i) to (vii) of the fed eral Act" and substituting "Canadian resource properties of the first successor corporation"; (

e) in subsection (6.1) by striking out "of corporations described m paragraph 87(1. l)(

a) or (b)" and substituting''described in sub

section 87(1) of the federal Act of corporations described in sub

section 87(1.1)"; (

f) by adding the following after subsection (6.2);

(6.3) If a corporation (in this subsection referred to as the "particular corporation") has at any time after July 19, 1985, acquired by purchase, amalgamation, merger, winding-up or

4 Application of

Part 9. 5

Section 11(1) presently reads: 11(1) Subject to subsection (2), subdivision e of Division B of

Part I of the federal Act applies to deductions in computing income.

Section 20(5), (6) and (6.1) presently read:

(5) Except with respect to an amalgamation or winding-up to which sub section (6.1) or (6.2) applies, if a corporation (in this subsection referred to as the "successor corporation") has, at any time after May 6, 1974, ac quired, by purchase or otherwise, including an acquisition as a result of an amalgamation of 2 or more corporations, from another person, (in this subsection referred to as the "predecessor") all or substantially all of the property of the predecessor used by him in carrying on in Canada any of the businesses mentioned in subparagraphs 66(15)(h)(

i) to (vii) of the fed eral Act the successor corporation shall, in determining Us royalty tax deduction for a taxation year be entitled to include in the calculation of its attributed Canadian royalty income for the year the lesser of (

a) the amount that, but for this subsection, the predecessor would have been entitled to carry forward under subsection (4) or under sec tion 11(6) or (7) of the Alberta Income Tax Act in respect of his taxa tion year in which the property so acquired was acquired by the suc cessor corporation, to the extent that such amount has not been included in the attributed Canadian royalty income of the successor corporation for a previous taxation year and (

b) an amount equal to such part of its income for the year if no deduction were allowed under

section 65. 66, 66.1, 66.2, 66.4 or 66.5 of the federal Act as may reasonably be regarded as attributable to the production of petroleum, natural gas or coal from the property so acquired from the predecessor and in respect of any such attributed Canadian royalty income included in the amount referred to in clause (a), no amount may be used by the predecessor in determining his royalty tax deduction for a taxation year subsequent to his taxation year in which the property so acquired was acquired by the successor corporation.

(6) Except with respect to an amalgamation or winding-up to which sub section (6.1) or (6.2) applies, if a corporation (in this subsection referred to Explanatory Notes

otherwise from another person (in this subsecfion refen-ed to as the "predecessor") who is exempt from tax under

Part I of the federal Act on his taxable income, other than a predeces sor that (

a) is referred to in paragraph 149(l)(

d) of the federal Act, and (

b) is a principal-business corporation within the mean ing of paragraph 66(15)(

h) of the federal Act, all or substantially all of the Canadian resource properties of the predecessor, subsections (5) and (6) do not apply to the particular corporation in respect of the acquisition of the property except to the extent that the property was acquired by it before 1987 pursuant to an agreement in writing made by it before July 20, 1985.

(2) Subsection (l)(

a) and (

c) apply with respect to acquisitions occur ring after 1982.

(3) Subsection (l)(

b) and (

d) apply with respect to acquisitions occur ring in a taxation year commencing after 1984.

(4) Subsection (l)(

e) applies to amalgamations occurring after June 1, 1987.

(5) Subsection (l)(

f) applies to taxation years ending after July 19, 1985. 7(1)

Section 21 is repealed and the following is substituted; 21 Except where otherwise provided in this Part, the tax payable under this Act by a corporation that has a taxation year (

a) ending before April 1, 1987 is 11% of the amount taxable in Alberta for the year, (

b) part of which is before April 1, 1987 and part of which is after March 31, 1987 is the aggregate of (i) 11% of the proportion of the amount taxable in Alberta for the year that the number of days in the year before April 1, 1987 bears to the number of days in the year, and (ii) 15% of the proportion of the amount taxable in Alberta for the year that the number of days in the year after March 31, 1987 bears to the number of days in the year, or (

c) beginning after March 31, 1987 is 15% of the amount taxable in Alberta for the year. (2) Subsection (1) applies after March 31, 1987.

as the "second successor corporation ") has, at any time after May 6. 1974, acquired, by purchase or otherwise, including an acquisition as a resuh of an amalgamation of 2 or more corporations, from another corporation (in this subsection referred to as the "first successor corporation") that was a successor corporation wUhin the meaning of subsection (5), ad or substan tially all of the property of the first successor corporation used by U in Canada in carrying on any of the businesses mentioned in subparagraphs 66(15)(h)(

i) to (vii) of the federal Act, the second successor corporation shall, in determining Us royalty tax deduction for a taxation year be entitled to include in the calculation of its attributed Canadian royalty income for the year the lesser of (

a) the amount determined under subsection (5)(

a) in respect of the first successor corporation to the extent that the amount has not been included in the attributed Canadian royalty income of the first succes sor corporation for its previous taxation year in which the property so acquired was acquired by the second successor corporation and has not been included in the attributed Canadian royalty income of the second successor corporation for a taxation year and (

b) an amount equal to such part of its income for the year if no deduction were allowed under

section 65, 66, 66.1, 66.2, 66.4 or 66.5 of the federal Act as may reasonably be regarded as attributable to the production of petroleum, natural gas or coal from the property ac quired from the first successor corporation's predecessor corporation within the meaning of subsection (5), and in respect of any such attributed Canadian royalty income included in the amount referred to in clause (a), no amount may be used by the first successor corporation in determining its royalty tax deduction for a taxation year subsequent to its taxation year in which the property so acquired was acquired by the second successor corporation.

(6.1) If there has been an amalgamation of corporations described in par agraph 87(1. l)(

a) or (

b) of the federal Act, the new corporation shad, for the purposes of this section, be deemed to be the same corporation as and a continuation of each predecessor corporation, except that this subsection shall in no respect affect the determination of any predecessor corpora tion's fiscal period, taxable income or tax payable. 7

Section 21 presently reads: 21 Except where otherwise provided in this Part, the tax payable by a corporation under this Act for a taxation year is 11% of the amount tax able in Alberta for the year Explanatory Notes

8(1)

Section 22 is amended (

a) in subsection (2) by striking out "6%" and substituting "the applicable percentage for the taxation year"; (

b) by repealing subsection (2)(b)(

i) and substituting the following: (i) 2.5 times the aggregate of amounts that would be deduct ible under subsection 126(1) of the federal Act from the tax otherwise payable by it for the year under

Part I of the federal Act if the amount determined under subparagraph 126(7)(d)(

i) of the federal Act were determined without reference to par agraph 123(l)(

c) of the federal Act, (

c) by adding the following after subsection (2);

(2.1) For the purposes of subsection (2), the applicable per centage (

a) for a taxation year ending before April 1, 1987 is 6%, (

b) for a taxation year, part of which is before April 1, 1987 and part of which is after March 31, 1987 is the aggregate of (

i) the proportion of 6% that the number of days in the year before April 1, 1987 bears to the number of days in the year, and (ii) the proportion of 10% that the number of days in the year after March 31, 1987 bears to the number of days in the year, and (

c) for a taxation year beginning after March 31, 1987 is 10%.

(2) Subsection (l)(

a) and (

c) apply afier March 31, 1987.

(3) Subsection (l)(

b) applies to taxation years ending after June 30, 1987. 9(1)

Section 23(2) is amended (

a) by striking out "has a permanent establishment in Alberta,"; (

b) by adding "for a taxation year" after "computing its income"; (

c) by striking out "on that foreign investment income"; (

d) by repealing clause (

a) and substituting the following; (

a) the Alberta allocation factor multiplied by, (

i) if the taxation year ends before April 1, 1987, 11% of the foreign investment income for the year from sources in that country, (ii) if part of the taxation year is before April 1, 1987 and part of the taxation year is after March 31, 1987, the aggregate of (A) 11% of the proportion of the foreign investment income for the year from sources in that country that

Section 22(2) presently reads:

(2) There may be deducted from the tax payable under

section 21 for a taxation year by a corporation that was, throughout the year, a Canadian- controlled private corporation, an amount equal to the product obtained when the Alberta allocation factor is multiplied by 6% of the least of (

a) the amount, if any, by which the aggregate of (

i) the aggregate of all amounts each of which is the income of the corporation for the year from an active business carried on in Canada other than the income of the corporation for the year from a business carried on by U as a member of a partnership, and (ii) the specified partnership income of the corporation for the year exceeds the aggregate of (iii) the aggregate of ad amounts each of which is a loss of the corporation for the year from an active business carried on in Canada other than a loss of the corporation for the year from a business carried on by it as a member of a partnership, (iv) the specified partnership loss of the corporation for the year and (

v) the corporation's royalty tax deduction for the year (

b) the amount, if any by which the corporation's taxable income for the year exceeds the aggregate of (i) 2.5 times the aggregate of amounts deducted under subsection 126(1) of the federal Act from the tax otherwise payable by U for the year under

Part I of the federal Act, (ii) 2 times the aggregate of the amounts deducted under subsec tion 126(2) of the federal Act from the tax otherwise payable by U for the year under

Part I of the federal Act, and (iii) the corporation's royalty tax deduction for the year, and (

c) the corporation's business limU for the year 9

Section 23(2) presently reads:

(2) If a corporation has a permanent establishment in Alberta, has in cluded foreign investment income in computing its income and is entitled to a deduction under subsection 126(1) of the federal Act in respect of income or profits tax paid to a country outside Canada on that foreign investment income, U may deduct from the tax payable remaining afier it has claimed the deductions under sections 22 and 22.1 an amount equal to the lesser of (a) 11% of the foreign investment income for the year from sources in that country multiplied by the Alberta allocation factor (

b) the Alberta allocation factor multiplied by the amount, if any by which (

i) the non-business-income tax paid by the corporation to a country or political subdivision of a country m respect of that foreign investment income, except any amount that maybe re garded as having been paid in respect of income from a share of the capital stock of a foreign affiliate of the corporation. Explanatory Notes

or the number of days in the year before April 1, 19^7 bears to the number of days in the year, and (B) 15% of the proportion of the foreign investment income for the year from sources in that country that the number of days in the year after March 31, 198? bears to the number of days in the year, (iii) if the taxation year begins after March 31,1987,15% of the foreign investment income for the year from sources in that country, (

e) in clause (b)(

i) by striking out "to a country or political sub division of a country in respect of that foreign investment in come" and substituting "for the year to that country".

(2) Subsection (l)(a), (b), (

c) and (

e) apply to taxation years beginning after this Act comes into force.

(3) Subsection (l)(

d) applies after March 31, 1987. 10(1)

Section 26 is amended (

a) by repealing subsection (1.91)(

b) and substituting the follow ing: (

b) is wound up in circumstances to which subsecfion 88(1) of the federal Act would apply if the reference to "taxable Canadian corporation" in that subsection were a reference to "corporation", (

b) in subsection (3) by striking out ad that portion following clause (

b) and substituting the following; and it and another corporation are associated with each other for a taxation year, and that other corporation was, through out the year and from the later of June 1, 1987 and the day on which the corporations last became associated, (

c) a Canadian-controlled public corporation, other than a corporation that controlled the taxpayer corporation, or (

d) controlled by a Canadian-controlled public corpora tion that is a corporation other than the taxpayer corpo ration or a corporation that controlled the taxpayer cor poration, the taxpayer corporation and the other corporation are deemed not to be associated with each other for the year.

(2) Subsection (l)(

a) applies after March 31, 1986.

(3) Subsection (l)(

a) does not apply to (

a) the disposition of property by a restricted corporation or a restricted partnership, or (

b) the acquisition of the control of a restricted corporation or a corporation associated with a restricted corporation if the property is disposed of or the control is acquired pursuant to the terms of a contract, other than an option, entered into and enforceable on or before Aprd 7. 1986.

(4) Subsection (l)(

b) applies after June 1, 1987.

exceeds the aggregate of (ii) the amount deductible under subsection 126(1) of the federal Act in respect thereof, and (iii) the greater of the amount deducted under subsection 20(12) ofthe federal Act in determining income under the federal Act and the amount deducted under subsection 20(12) of the federal Act as adopted by this Act in determining income under this Act, and (

c) the amount of the tax remaining after U has claimed the deduc tions under sections 22 and 22.1. 10

Section 26(1.91) and (3) presently read:

(1.91) If at any time after AprU 7, 1986 a restricted corporation (

a) amalgamates with (i) 1 or more of its subsidiary wholly-owned corporations, (ii) 1 or more corporations, each of which is a subsidiary wholly- owned corporation ofthe same corporation of which the restricted corporation is a subsidiary wholly-owned corporation, or (iii) a corporation of which the restricted corporation is a subsid iary wholly-owned corporation, or (

b) is wound up in circumstances to which subsection 88(1) of the federal Act applies, and any right or interest of any nature whatsoever or howsoever described or part thereof in any production from a petroleum or natural gas wed in Alberta is deemed to have been disposed of to the new corporation pursuant to subsection (1.53) or is disposed of as a resuh ofthe winding-up. for the purposes of subsection (l)(h)(ii) that disposition is deemed not to have occurred.

(3) In this Division, if a corporation (referred to in this subsection as the "taxpayer corporation") was, throughout the year (

a) resident in Canada, and (

b) not controlled directly or indirectly in any manner by 1 or more persons who are not resident in Canada, and U and another corporation are associated with each other for a taxa tion year and that other corporation was, throughout the year (

c) a Canadian-controlled public corporation, other than a corpora tion that controlled the taxpayer corporation, or (

d) controlled by a Canadian-controlled public corporation that is a corporation other than the taxpayer corporation or a corporation that controlled the taxpayer corporation, the taxpayer corporation and the other corporation are deemed not to be associated with each other for the year Explanatory Notes

12(1)

Section 26.2(1) is amended by striking out "to (8)" and substi tuting "to (7)". (2) Subsection (1) applies to (

a) taxation years ending after August 31, 1981, and (

b) taxation years ending before September 1, 1981 if the corpo ration is associated with a corporation that has a taxation year ending after August 31, 1981. 13(1)

Section 26.3(1) is amended by striking out "to (8)" and substi tuting "to (7)". (2) Subsection (1) applies to (

a) taxation years ending after August 31, 1981, and (

b) taxation years ending before September 1, 1981 if the corpo ration is associated with a corporation that has a taxation year ending after August 31, 1981.

(13) NotwUhstanding subsection (2), if a corporation is a member of a partnership whose fiscal period begins before September 1, 1981 or ends before January 1, 1985 and the corporation is deemed to have Alberta crown royalty under subsection (12) or (12.1), the specified percentage for the part of that deemed Alberta crown royalty that is in respect ofroyaUies that became receivable or payable (

a) before September I, 1981 shad be determined as if the reference in subsection (2)(

a) to "75%" were to "25%", and (

b) before January I, 1984 shad be determined as if the reference in subsection (2)(

b) to "50%" were to "75%".

(13.1) NotwUhstanding subsection (2), if a corporation is a member of a partnership whose fiscal period ends after December 31, 1986 and the corporation is deemed to have Alberta crown royalty under subsection (12) or (12.1), the specified percentage for the part of that deemed Alberta crown royalty that is in respect ofroyaUies that became receivable or payable (

a) before January I, 1987 and after March 31, 1986 shall be deter mined as if the reference in subsection (2)(

c) to "75%" were to "95%", and (

b) before Aprd 1, 1986 shad be determined as if the reference in subsection (2)(

c) to "75%" were to "50%". 12

Section 26.2(1) presently reads: 26.2(1) NotwUhstanding

section 26.1(1) to (8) and (13), if a corporation has Alberta crown royalty in a taxation year part of which is before Sep tember I, 1981 and part of which is after August 31, 1981, or has Alberta crown royalty in a taxation year ending before September I, 1981 when U is associated with another corporation in a taxation year of the other corporation, part or ad of which is after August 31, 1981, U is entUled to a royalty tax credU for the year in an amount equal to the aggregate of (

a) the lesser of (i) 25% of the corporation's Alberta crown royalty for the year and (ii) the corporation's maximum allowable credU for the year de termined under subsection (2), and (

b) the lesser of (i) 50% ofthe corporation's Alberta crown royalty for the period in the year after August 31, I98I, and (ii) the corporation's additional maximum allowable credU for the year determined under subsection (3). 13

Section 26.3(1) presently reads: 26.3(1) Notwithstanding

section 26.1(1) to (8) and (13), if a corporation has Alberta crown royalty in a taxation year part of which is before Jan uary 1, 1984 and part of which is after December 31, 1983, or has Alberta crown royalty in a taxation year beginning after December 31, 1983 when U is associated with another corporation in a taxation year oj the other corporation, part or ad of which is before January 1, 1984, U is entitled to a royalty tax credU for the year in an amount equal to the aggregate oj (

a) the lesser of (i) 50% ofthe corporation's Alberta crown royalty for the year and (ii) the corporation's maximum allowable credUfor the year de termined under subsection (2), and 7 Explanatory Notes

14(1)

Section 26.31 is amended (

a) by repealing subsections (1) to (3) and substituting the follow ing; 26.31(1) Notwithstanding

section 26.1(1) to (7) and (13), if a corporation has Alberta crown royalty (

a) in a taxation year part of which is before April 1, 1986 and part of which is after March 31, 1986, or (

b) in a taxation year when it is associated with another corporation in a taxation year of the other corporation part of which is before April 1, 1986 and part of which is after March 31, 1986, it is entitled to a royalty tax credit for the year in an amount equal to the lesser of (

c) the aggregate of (i) 50% ofthe corporation's Alberta crown royalty for the year, and (ii) 45% of the corporation's Alberta crown royalty for the period in the year after March 31, 1986, and (

d) the corporation's maximum allowable credit for the year determined under subsection (2).

(2) A corporation's maximum allowable credit for a taxafion year is the aggregate of (

a) the lesser of (i) $2 000 000, and (ii) that proportion of $2 000 000 that the number of days in the taxation year bears to 365, and (

b) the lesser of (i) $1000 000, and (ii) that proportion of $1 000 000 that the number of days in the taxation year after March 31, 1986 bears to 365, unless in the year the corporation is associated with another corporation, in which case the corporation's maximum aUow able credit for the taxation year is the amount allocated to the corporation under subsection (4) or (6).

(

b) the lesser of (i) 25% ofthe corporation's Alberta crown royalty for the period in the year before January I, 1984, and (ii) the corporation's addUional maximum allowable credU for the year determined under subsection (3). 14

Section 26.31 presently reads in part: 26.31(1) Notwithstanding

section 26.1(1) to (8) and (13.1), (

a) if a corporation has Alberta crown royalty in a taxation year part or all of which is in the period commencing April 1, 1986 and ending December 31, 1986, or (bj if a corporation has Alberta crown royalty in a taxation year when U is associated with another corporation in a taxation year ofthe other corporation part or all of which is in the period commencing Aprd I, 1986 and ending December 31, 1986, U is entitled to a royahy tax credit for the year in an amount equal to the aggregate of (

c) the lesser of (i) 50% ofthe corporation's Alberta crown royalty for the year and (ii) the corporation's maximum allowable credU for the year de termined under subsection (2), and (

d) the lesser of (

i) the aggregate of (A) 45% of the corporation's Alberta crown royalty for the period in the year after March 31, 1986 and before January I, 1987. and (B) 25% of the corporation's Alberta crown royalty for the period in the year after December 31, 1986, and (ii) the corporation's addUional maximum allowable credU for the year determined under subsection (3).

(2) A corporation's maximum allowable credU for a taxation year is the lesser of (a) $2 000 000, and (

b) that proportion of $2 000 000 that the number of days in the tax ation year bears to 365, unless in the year the corporation is associated with another corporation, in which case the corporation's maximum allowable credUfor the year is the amount allocated to the corporation under subsection (4) or (6).

(3) A corporation's additional maximum allowable credUfor a taxation year is the lesser of (a) $1 000 000, and (

b) that proportion of$l 000 000 that the number of days in the tax ation year after March 31, 1986 bears to 365, 3 Explanatory Notes

(

b) by repealing subsection (5); (

c) in subsection (6) (

i) by striking out "subsections (4) and (5)" and substitutin "subsection (4)"; (ii) in clause (

b) by striking out "subsections (7) and (8)" an substituting "subsection (7)"; (iii) by striking out "and the additional maximum allowabl credit"; (

d) by repealing subsections (7) and (8) and substituting the foi lowing;

(7) The aggregate of the maximum allowable credits alio cated among corporations that are associated with each othe shall not exceed the aggregate of (

a) the lesser of (i) $2 000 000, and (ii) that proportion of $2 000 000 that the number o days in the taxation year ofthe associated corporatioi with the longest year bears to 365, and (

b) the lesser of (i) $1000 000, and (ii) that proportion of $ 1 000 000 that the number o days after March 31, 1986 in the taxation year of thi associated corporation whose taxation year contain the greatest number of days after March 31, 1986 bear to 365. (2) Subsection (1) applies after March 31, 1986. 15 The following is added after

section 26.31: 26.32 Unless otherwise prescribed by regulation and notwith standing

section 26.1(1), (2) and (13), (

a) if a corporation has Alberta crown royalty in a taxatioi year part of which is before January 1, 1988 and part of whicl . IS after December 31, 1987, or (

b) if a corporation has Alberta crown royalty in a taxatioi year when it is associated with another corporation in a tax

unless in the year the corporation is associated with another corporation, in which case the corporation's additional maximum allowable credit for the year is the amount allocated to the corporation under subsection (5) or (6).'

(5) The Provincial Treasurer shall allocate to each corporation in a group of corporations that are associated with each other an additional maxi mum allowable credit equal to that proportion ofthe amount determined under subsection (8) that (

a) the lesser of (ij that corporation's .Alberta crown royalty for the period in the year after March 31, 1986, and (ii) $4 000 000 is of (

b) the aggregate ofthe amounts determined under clause (

a) for each corporation in the group of associated corporations.

(6) NotwUhstanding subsections (4) and (5), if 2 or more corporations that are associated with each other file an agreement in the prescribed form with the Provincial Treasurer and that agreement (

a) is among all ofthe associated corporations, and (

b) allocates the relevant amounts under subsections (7) and (8) to any or ad ofthe associated corporations, the Provincial Treasurer shad allocate the maximum allowable credU and the addUional maximum allowable credU among the associated corpora tions in accordance with the agreement.

(7) The aggregate of the maximum allowable credits allocated among corporations that are associated wUh each other shad not exceed the lesser of (a) $2 000 000. and (

b) the proportion of $2 000 000 that the number of days in the tax ation vear ofthe associated corporation with the longest year bears to 365.

(8) The aggregate ofthe addUional maximum allowable credUs allocated among corporations that are associated with each other shall not exceed , the lesser of (a) $1 000 000, and (

b) that proportion of$l 000 000 that the number of days after March 31, 1986 in the taxation year of the associated corporation whose taxation vear contains the greatest number of days after March 31, 1986 bears to 365. 15 Transitional. Explanatory Notes

ation year of the other corporation part of which is before January 1, 1988 and part of which is after December 31. 1987. it is entitled to a royalty tax credit for the year in an amount equal to the lesser of (

c) the aggregate of (i) 75% ofthe corporation's Alberta crown royalty for the year, and (ii) 20% of the corporation's Alberta crown royalty for the period in the year before January 1, 1988, and (

d) the corporation's maximum allowable credit for the year determined under

section 26.1. 16(1)

Section 26.4 is repealed and the following is substduted: 26.4(1) A corporation that has reason to believe it will be en titled to a royalty tax credit for a taxation year may, in respect of each month in the year, apply to the Provincial Treasurer at any time before the end of the year in the prescribed form for pay ment of an amount that is the proportion ofthe royalty tax credit to which the corporation estimates it is entitled for the yeai that the number of days in the month bears to the number of days in the year.

(2) If a corporation applies for payment in respect of a month under subsection (1), the Provincial Treasurer may determine the amount, if any, to be paid or applied by him and, on or after the last day ofthe month, (

a) pay the amount to the corporation, or (

b) if the corporation is liable to make a payment under this Act, (

i) apply the amount to reduce the liability, or (ii) pay part of the amount to the corporation and apply the balance of the amount to reduce the liability, and the amount or part of the amount applied at a particular time to reduce the liability is deemed to be a payment to the corporation that is paid by the corporation at the particular time to the Provincial Treasurer on account ofthe liability. (2) Subsection (1) applies to taxation years beginning after a date prescribed by regulation made by the Lieutenant Governor in Council. 17(1)

Section 26.5 is amended by adding the following after subsec tion (6):

(6.1) A corporation is deemed to have paid on the day on which It files an application in accordance with subsection (5) in respect of a taxation year an amount on account of its tax for the year equal to the extended Alberta rental investment tax credit to which it is entitled for the year. 10

Section 26.4 presently reads: 26.4(1) A corporation that has reason to believe U wid be entUled to a royalty tax credU in respect of a taxation year if application is made for the credU to the Provincial Treasurer may, in respect of each month ofthe year apply to the Provincial Treasurer at any time before the end of the taxation year in the prescribed form for payment ofthe amount estimated by U to be Us royalty tax credU instalment for that month.

(2) If application for payment of a royalty tax credU instalment in respect of a month has been made by a corporation in the prescribed form, the Provincial Treasurer may determine the entitlement to and the amount, if any. ofthe royalty tax credU instalment and may apply the amount ofthe royalty tax credU instalment to any amount owing by the corporation under this Act and shad pay any amount of the royalty tax credU instal ment not so applied to the corporation on or after the last day of that month.

(3) For the purposes of this section, the amount of a corporation's royalty tax credit instalment for a month in a taxation year is that proportion of the royalty tax credU to which the corporation is entitled for the taxation year that the number of days in the month bears to the number of days in the year

(4) A corporation shad pay to the Provincial Treasurer interest at a pre scribed rate per annum on the amount, if any, by which the amount paid or applied by the Provincial Treasurer in respect of a month in a taxation year by virtue of subsection (2) exceeds the royalty tax credU instalment to which the corporation is entitled in respect ofthe month from the day the instalment is applied or paid to the earlier of (

a) the day on which payment ofthe excess for that month is made to the Provincial Treasurer, (

b) the day on which the corporation files its claim under

section 26.1(14), and (

c) the required date of filing the return under

section 36(1). 17

Section 26.5(5) and (6) presently read:

(5) Application for an extended Alberta rental investment tax credU shad be filed in the prescribed form (

a) within 36 months from the date of issue ofthe certificate of com pletion referred to in subsection (l)(d)(ii) but not before the end of the taxation year in which the certificate of completion was issued or m the case of a corporation that is a member of a partnership not before "lO Explanatory Notes

(2) Subsection (1) applies to taxation years beginning after a date prescribed by regulation made by the Lieutenant Governor in Council. 18(1) The following is added after

section 26.6(5):

(5.1) A corporation is deemed to have paid on the day on which it files an application in accordance with subsection (4) in respect of a taxation year an amount on account of its tax for the year equal to the Alberta small business investment tax credit to which it is entitled for the year (2) Subsection (1) applies to taxation years beginning after a date prescribed by regulation made by the Lieutenant Governor in Council 19(1)

Section 28(1) is amended by striking out ", (2) and (3)" and substituting "and (2)". (2) Subsection (1) applies to taxation years beginning after a date prescribed by regulation made by the Lieutenant Governor in Council. 20(1)

Section 30 is amended (

a) in subsection (1) by striking out "(2)" and substituting "(1.1)"; (

b) by adding the following after subsection (1); (1.1) Subsection 131(2) ofthe federal Act applies only for the purpose of determining the amount of capital gains refund of a corporation for a taxation year. (

c) by repealing subsection (2) and substituting the following:

(2) In the application of subparagraph 131(2)(a)(

i) ofthe fed eral Act for the purposes of this Act, the reference to "18%" shall be read, (

a) in respect of a taxation year ending before April 1, 1987, as a reference to "5.5%", (

b) in respect of a taxation year part of which is before April 1, 1987 and part of which is after March 31, 1987 as a reference to the aggregate of (

i) the proportion of 5.5% that the number of days in the year before April 1, 1987 bears to the number of days in the year, and 11

the end of the taxation year of the corporation in which the fiscal period ofthe partnership ended during which the certificate of comple tion was issued, (a.

l) together with, if the qualifying Alberta multiple unU residential building is owned in partnership or is owned by more than 1 person, a copy ofthe ownership agreement, and (

b) wUh the return required under

section 36(1) for that taxation year or subsequent to the filing of that return.

(6) No corporation is entitled to an extended Alberta rental investment tax credit untd U has filed an application in accordance with subsection (5). 18

Section 26.6(5) presently reads:

(5) No corporation is entUled to an Alberta smad business investment tax credU untd U has filed an application in accordance with subsection (4). 19

Section 28(1) presently reads: 28(1) If a corporation is throughout a taxation year an investment cor poration, other than a mutual fund corporation, subsections 131(1), (2) and (3) of the federal Act, as made applicable by

section 30 of this Act, apply as if (

a) the corporation had been a mutual fund corporation throughout that and ad previous taxation years ending after 1971 throughout which it was an investment corporation, and (

b) Us capital gains redemption for that and all previous taxation years ending after 1971, throughout which U would but for the as sumption made by clause (

a) not have been a mutual fund corporation, were nd. 20

Section 30(1), (2), (2.1), (3), (4), (5) and (7) presently read: 30(1) Subject to subsections (2) to (7), if a corporation is a mutual fund corporation,

section 131 of the federal Act applies for the purposes of this Act.

(2) In the application of subparagraph 131(2)(a)(

i) of the federal Act for the purposes of this Act, the reference to "18%" shad be read as a reference to "5.5%".

(2.1) In the application of subsections 131(2) and (3) of the federal Act for the purposes of this Act, the reference to "Minister" shad be read as a reference to "Provincial Treasurer".

(3) In the application of subsection 131(3) of the federal Act for the pur poses of this Act, the reference to "this Act" shad be deemed to be a reference to this Act.

(4) In the application of clause 131 (6)(a)(i)(

A) and clause 131(6)(b)(ii)(

C) of the federal Act for the purposes of this Act, the references to "50/9 times shad be read as references to "200/11 times".

(5) In the application of paragraph 131(6)(

d) of the federal Act for the purposes of this Act, subparagraph (

i) shad be read without reference to clause (

C) and the reference to "36o/o" m clauses (

A) and (

B) of that sub paragraph shad be read as references to "11% • "I •\ Explanatory Notes

or (ii) the proportion of 7.5% that the number of days in the year after March 31, 1987 bears to the number of days in the year, (

c) in respect of a taxation year beginning after March 31, 1987, as a reference to "7.5%". (

d) by repealing subsections (2.1) and (3); (

e) by repealing subsection (4) and substituting the following:

(4) In the application of clause 131(6)(a)(i)(

A) and clause 131 (6)(b)(ii)(

C) ofthe federal Act for the purposes of this Act, the reference to "50/9" shall be read, (

a) in respect of a taxation year ending before April 1, 1987, as a reference to "200/11", (

b) in respect of a taxation year part of which is before April 1, 1987 and part of which is after March 31, 1987, as a reference to the aggregate of (i) 200/11 times the number of days in the year before April 1, 1987 divided by the number of days in the year, and (ii) 40/3 times the number of days in the year after March 31, 1987 divided by the number of days in the year. or (

c) in respect of a taxation year beginning after March 31, 1987, as a reference to "40/3". (

f) by repealing subsection (5) and substituting the following;

(5) In the application of paragraph 131(6)(

d) ofthe federal Act for the purposes of this Act, subparagraph (

i) shall be read without reference to clause (

C) and the reference to "36%" in clauses (

A) and (

B) of that subparagraph shall be read, (

a) in respect of a taxation year ending before April 1, 1987, as a reference to "11%", (

b) in respect of a taxation year part of which is before April 1, 1987 and part of which is after March 31, 1987, as a reference to the aggregate of (

i) the proportion of 11% that the number of days in the year before April 1, 1987 bears to the number of days in the year, and (ii) the proportion of 15% that the number of days in the year after March 31, 1987 bears to the number of days in the year. or (

c) in respect of a taxation year beginning after March 31, 1987, as a reference to "15%". (

g) in subsection (7) by adding "(3)," after "(1.4),"; 12

il] Subsections 131(1.3), (1.4), (5) and (9) and paragraph 131(l.l)(

b) of the federal .Act do not apply for the purposes of this Act. •|2 Explanatory Notes

(

h) by adding the following after subsection (7):

(8) A corporation is deemed to have paid, on the later ofthe day its retum under

section 36 for the taxation year is filed and the day on which it files a statement with the Provincial Treasurer containing a calculation of its capital gains refund for the year, an amount equal to its capital gains refund for the year

(2) Subsection (l)(a), (b), (d), (

g) and (

h) apply to taxation years be ginning after a date prescribed by regulation made by the Lieutenant Governor in Councd.

(3) Subsection (l)(c), (

e) and (

f) apply after March 31, 1987. 21(1)

Section 38(8) is repealed and the following is substituted:

(8) A corporation shall pay to the Provincial Treasurer on or before (

a) the end of the 3rd month following the taxation year, if subsection (1.1) applies, or (

b) the end of the 2nd month following the taxation year in any other case, the amount, if any, by which the aggregate of the amounts paid by the Provincial Treasurer under

section 26.4 for the year ex ceeds the royalty tax credit for the year to which the corporation is entitled. (2) Subsection (1) applies to taxation years beginning after a date prescribed by regulation made by the Lieutenant Governor in Councd. 22(1) The following is added after

section 38: 38.1(1) If at any time the Provincial Treasurer determines that as a consequence ofthe operation of

section 26.1(14.1), 26.5(6.1), 26.6(5.1) or 30(8) an amount has been refunded to a corporation for a taxation year in excess of the amount to which it was en titled as a refund, (

a) the excess shall be deemed to be an amount that became payable by the corporation on the day on which the amount was refunded, and (

b) the taxpayer shall pay interest at the prescribed rate on the excess from the day it became payable to the day of pay ment.

(2) The Provincial Treasurer may, at any time, assess the corpo ration in respect of any amount payable by the corporation under subsection (1), and this Part applies in respect of an assessment made under this subsection as if it had been made under

section 43. (2) Subsection (1) applies to taxation years beginning after a date prescribed by regulation made by the Lieutenant Governor in Council. 13

Section 38(8) presently reads:

(8) A corporation shall pay to the Provincial Treasurer on or before (

a) the last day of the period ending 3 months after the close of the year if subsection (l.

I) applies to the corporation, or (

b) the last day ofthe period referred to in subsection (1) in any other case, the amount, if any, by which the aggregate ofthe amounts of the royalty tax credit instalments payable under

section 26.4 in respect of the year exceeds the amount ofthe royahy tax credit for the year for which appli cation is made. 22 Refund of excess payment. "13 ExDianatory Notes

23(1)

Section 39 is amended (

a) by repealing subsections (1), (1.1) and (2) and substituting the following; 39(1) A corporation shall pay to the Provincial Treasurer in respect of a taxation year and in respect of the period begin ning on the day on which the corporation's retum under sec tion 36 for the year is filed and ending at a particular time, the amount, if any, by which (

a) the aggregate of all amounts, each of which is interest at the prescribed rate on tax or an instalment of tax for the year that the corporation was required to pay to the Provincial Treasurer before the end of the period, com puted from the day that is the later of the beginning of the period and the day on or before which the tax or instalment was required to be paid to the end of the pe riod, exceeds (

b) the aggregate of all amounts, each of which is interest at the prescribed rate on an amount paid by the corpo ration at or before the end of the period and applied as at the particular time by the Provincial Treasurer to reduce the corporation's liability for an amount payable for the year computed from the day that is the later ofthe begin ning of the period and the day of payment to the end of the period.

(1.1) If at any time after the day on which a corporation's retum under

section 36 for a taxation year is filed, (

a) the aggregate ofthe amounts paid by the Provincial Treasurer under

section 26.4 for the year exceeds the aggregate of (

b) the royalty tax credit for the year to which the cor poration is entitled, and (

c) the aggregate of the amounts paid by the corporation before that time under

section 38(8) for the year, the corporation shall pay to the Provincial Treasurer interest at the prescribed rate on the excess computed for the period during which the excess is outstanding.

(2) In addition to the interest payable under subsection (1), a corporation shall pay to the Provincial Treasurer, in respect of a taxation year and in respect of the period beginning on the first day of the year and ending on the day on which the corporation's retum under

section 36 for the year is filed, the amount, if any, by which the aggregate of (

a) all amounts, each of which is interest at the prescribed rate on tax or an instalment of tax for the year that the corporation was required to pay to the Provincial Treas urer before the end ofthe period, computed from the day 14

23 Secuon 39(1), (1.1), (2) and (4) presendy read: 39(1) If at any time after the day on or before which a return of a corpo ration was required under

section 36 to be filed for a taxation year (

a) the amount of its tax payable for the year exceeds (

h) the aggregate of aU amounts each of which is an amount paid at or before that time on account of tax payable and applied as at that time by the Provincial Treasurer against the corporation's liability for an amount payable for the year, the corporation liable to pay the tax shall pay to the Provincial Treasurer interest at the prescribed rate on the excess computed for the period during which that excess is outstanding.

(1.1) If the amounts paid to a corporation with respect to a refundable tax credit exceed the amount of the refundable tax credU to which the corpo ration is entUled, the corporation shad pay interest at the prescribed rate per year on the amount ofthe excess payment from (

a) in the case of a royalty tax credU, the later of (

i) the date on which the excess payment was made, and (ii) the earlier of the date on which the return required under

section 36(1) is filed or is required to be filed, or (

b) in the case of any other refundable tax credU, the date on which the excess payment was made to the date of payment.

(2) In addition to the interest payable under subsection (1), if a corporation required by this Act to pay tax or an instalment of tax fails to pay all or part ofthe tax or instalment on or before the day on or before which the tax or instalment, as the case may be, was required to be paid, the corpo ration shall pay to the Provincial Treasurer interest at the prescribed rate on the amount that it failed to pay computed from the day on or before which the amount was required to be paid to the day of payment or to the beginning of the period in respect of which U is required to pay interest under subsection (I), whichever is earlier

(4) For the purposes of subsection (2), when a corporation is required to pav a part or instalment of tax for a taxation year computed by reference to a method described in

section 38(1), U shad be deemed to have been liable to pay a part or instalment computed by reference to (

a) its tax payable under this Act for the year (

b) its first instalment base for the year or (

c) its 2nd instalment base and its first instalment base for the year whichever method gives rise to the least amount to be paid by the corpo ration. •\ 4 Explanatory Notes

on or before which the tax or instalment was required to be paid to the end of the period, and (

b) all amounts, each of which is interest at the prescribed rate on an amount paid during the period by the Provin cial Treasurer under

section 26.4 for the year, computed from the day of payment to the end of the period, exceeds the aggregate of (

c) all amounts, each of which is interest at the prescribed rate on an amount paid by the corporation at or before the end of the period and applied by the Provincial Treas urer to reduce the corporation's liability for an amount payable for the year computed from the day that is the later of the beginning of the period and the day of pay ment to the end of the period, and (

d) all amounts, each of which is interest at the prescribed rate on an amount in respect of a month in the year that is the proportion of the royalty tax credit to which the corporation is entitled for the year that the number of days in the month bears to the number of days in the year computed from the last day of the month to the end of the period. (

b) in subsection (4) by striking out "(2), when a corporation is required to pay a part or" and substituting "(1) or (2), when a corporation is required to pay an"; (

c) by adding the following after subsection (5):

(6) If a corporation is required by

section 37 to pay a penalty and fails to pay all or any part of the penalty as required, it shall pay to the Provincial Treasurer interest at the prescribed rate on the amount it failed to pay computed from the day on or before which the corporation's retum for the taxafion year in respect of which the penalty is payable was required to be filed to the day of payment.

(2) Subsection (l)(

a) and (

b) apply to taxation years beginning after a date prescribed by regulation made by the Lieutenant Governor in Councd.

(3) Subsection (l)(

c) applies after a date prescribed by regulation made by the Lieutenant Governor in CouncU except that interest is not payable under

section 39(6) ofthe Alberta Corporate Income Tax Act as enacted by subsection (l)(

c) for a part of a period if the part ends on or before the date prescribed. 24(1)

Section 41(2) and (5) are amended by striking out "loss or farm loss" wherever d occurs and substituting "loss, farm loss or limited partnership loss". (2) Subsection (1) applies after February 25, 1986. 15

Section 41(2) and (5) presently read:

(2) When the Provincial Treasurer ascertains the amount of a corpora tion's non-capital loss, net capital loss, restricted farm loss or farm loss for a taxation year and the corporation has not reported that amount as a non-capital loss, net capital loss, restricted farm loss or farm loss in its return filed for that year the Provincial Treasurer shall, at the request of the corporation, determine with ad due dispatch the amount ofthe corpo ration's non-capital loss, net capital loss, restricted farm loss or farm loss, as the case may be, and shall send a notice of determination to the person who filed the return. 15 Explanatory Notes

25(1)

Section 47 is amended (

a) by repealing subsection (1) and substduting the following: 47(1) For the purposes of this section, the "overpayment" of a corporation for a taxation year means the amount, if any, by which the aggregate of all amounts paid on account of the corporation's liability under this Act for the year exceeds the aggregate of all amounts payable by the corporation in respect of the year (

b) in subsection (2.1) (

i) by striking out "section 39(1) or (2)" wherever d occurs and substituting "section 39(1), (2) or (6)"; (ii) by striking out "paid or apphed" wherever d occurs and substduting "paid"; (

c) in subsection (4)(c)(

i) by striking out "or apphed"; (

d) by repealing subsection (4.1). (2) Subsection (1) applies to taxation years beginning after a date prescribed by regulation made by the Lieutenant Governor in Council. 16

(5) If the Provincial Treasurer makes a determination ofthe amount of a corporation's non-capital loss, net capital loss, restricted farm loss or farm loss for a taxation year as the case may be, subject to the corporation's rights of objection and appeal in respect ofthe determination and subject to any redetermination by the Provincial Treasurer the determination is binding on both the Provincial Treasurer and the corporation for the pur poses of calculating the ta.xahle income of the corporation in any other year under this .Act or under the old .Act. 25

Section 47( 1), (2.1), (4) and (4.1) presently read: 47(1) For the purposes of this section, "overpayment" of a corporation for a ta.xation year means (

a) the amount by which all amounts paid on account of tax under

Part 5 for the year and on account of interest and penalties under

Part 8 for the year exceed all amounts payable under

Part 5 and

Part 8 for the year, (

b) the amount of a refundable tax credit, other than a royalty tax credU, to which the corporation is entUled for the year less any amounts applied under

section 38(6) with respect to that refundable tax credU, (

c) the amount by which (

i) the amount ofthe royalty tax credU to which a corporation is entUled for the year exceeds (ii) the aggregate of (.

A) the aggregate ofthe amounts of royalty tax credU instal ments paid to the corporation for the year by virtue of

section 26.4 with respect to the royalty tax credit and any interest payable under

section 26.4(4) for the year less the aggregate of any amounts paid by the corporation for the year with respect to the royalty tax credit under

section 38(8), and (

B) any amounts applied under

section 38(6) for the year with respect to that royalty tax credU, or (

d) the amount by which the capital gains refund to which a corpo ration is entUled for the year under sections 28 and 30 exceeds the capital gains refund paid to it in respect of that year

(2.1) Subject to subsection (2.2), if a corporation (

a) has under

section 48 served a notice of objection to an assessment of tax, interest under

section 39(1) or (2) or a penalty and the Prov incial Treasurer has not within 120 days after the day of service con firmed or varied the assessment or made a reassessment in respect of the assessment, or (

b) has appealed to the court from an assessment of tax, interest under

section 39(1) or (2) or a penalty and has applied in writing to the Provincial Treasurer for a payment or surrender of securitv, the Provincial Treasurer shad with ad due dispatch repav ad amounts paid or applied on account ofthe amount assessed or surrender security accepted for the amount assessed to the extent that (

c) the lesser of (

i) the aggregate ofthe amounts so paid or applied and the value ofthe security, and (ii) the amount so assessed •J 6 Explanatory Notes

Section 77(2)(

b) is amended by striking out "income tax' 17

exceeds (

d) the amount, if any, so assessed that is not in controversy.

(4) If under this

section an amount in respect of a taxation year is re funded or repaid to a corporation or applied to another liabihty, the Prov incial Treasurer shad pay or apply interest on the amount at the prescribed rate for the period beginning on the day that is the latest of (

a) in the case of a refund or application of an overpayment, the day the overpayment arose, (

b) the day on which the return of the corporation for the year was filed, and (

c) in the case of a repayment of an amount in controversy, the day an overpayment equal to the amount of the repayment would have arisen if the aggregate of ad amounts payable on account of the cor poration's liability under this Act for the year were the amount by which (

i) the lesser of the aggregate of all amounts paid or applied on account of Us liability under this Act for the year and the aggregate of all amounts assessed by the Provincial Treasurer as payable under this Act by the corporation for the year exceeds (ii) the amount repaid, and ending on the day the amount is refunded, repaid or applied.

(4.1) For the purposes of determining when an overpayment with respect to a refundable tax credit for a taxation year arose, a corporation is en titled to receive its refundable tax credit for a year on the later of (

a) the date on which application for the credit is made in prescribed form, and (

b) repealed 1986 cl s22. 26

Section 77(2) presently reads:

(2) Subsection (

I) does not apply to the communication of (

a) statistical information that is provided to the Alberta Bureau of Statistics by the Provincial Treasurer to be used by the Bureau in accordance with

section 3 ofthe Statistics Bureau Act, (a.

l) information to the Department of Consumer and Corporate Af fairs that a return under this Act has been filed by any person or an application under

section 26.4(1) has been made by any person, (a.2) information obtained under this Act as to the name address or type of business of a taxpayer by the Provincial Treasurer to a person employed by a department or agency ofthe Government of Alberta solely for the purpose of enabling that department or agency to obtain statistical data for research and analysis, (

b) income tax information to employees ofthe Treasury Department solely for the purposes of evaluating and formulating tax policy and (

c) information between the Provincial Treasurer and a corporation respecting the tax cost of property acquired by the corporation in any case where by reason of any provision of this Act or the federal Act, that cost is other than its actual cost. "17 Explanatory Notes

27(1) The following is added after

section 85; PARTS INSURANCE CORPORATIONS TAX 86(1) In this Part, (a) "accident insurance" has the meaning given to that expression in the Insurance Act; (b) "annuity contract" means a contract that provides for the payment of an income for a specified period or for life and under the terms of which the sole benefit stated to be payable by reason of death does not exceed the sum of the amounts paid as consideration for the contract together with interest; (c) "business transacted in Alberta" means (

i) in the case of property insurance, all contracts on which premiums are receivable from, or in respect of, persons whose property was situated in Alberta at the time the premiums became payable, and (ii) in the case of other insurance, all contracts on which premiums are receivable from, or in respect of, persons who were resident in Alberta at the time the premiums became payable; (d) "insurance company" means a person or corporation carrying on in Alberta the business of insurance within the meaning of the Insurance Act, and (

i) includes a reciprocal or inter-insurance exchange and underwriters and syndicates of underwriters operating on the plan known as "Lloyd's" or operating as underwriting members ofthe Canadian Insurance Exchange or any other plan approved by the Minister charged with the admin istration of the Insurance Act, but (ii) does not include a fratemal society as defined in the Insurance Act; (e) "life insurance" has the meaning given to that expression in the Insurance Act; (f) "marine insurance" has the meaning given to that expres sion in the Insurance Act; (g) "risk distribution plan" means a plan, agreement, scheme or arrangement entered into or established by insurance com panies for the purposes of pooling, assigning or transferring risks among insurance companies and which the Provincial Treasurer by order recognizes as a risk distribution plan for the purposes of this Part; (h) "sickness insurance" has the meaning given to that expression in the Insurance Act; (i) "taxation year" means a calendar year in which premiums are receivable in respect of business transacted in Alberta. 18

27 Insurance corporations tax. 4 a Explanatory Notes

(2) For the purposes of this Part, the tax payable by an insurance company means the tax payable under this Part by the insurance company as fixed by assessment or reassessment subject to vari ation on objection or on appeal, if any, in accordance with this Part. 87(1) An insurance company shall pay to the Provincial Treas urer for a taxation year a tax of (a) 2% ofthe amount of premiums receivable during the year by the company under contracts of accident insurance, life insurance and sickness insurance, and (b) 3% ofthe amount of premiums receivable during the year by the company under any other insurance contract, in respect of business transacted in Alberta by the company.

(2) The reference in subsection (l)(

b) to "3%" is deemed to be a reference to "2.75%" in respect of the amount of premiums re ceivable by the company during the 1987 taxation yean

(3) For the purposes of this section, the "amount of premiums receivable" during a taxation year is the gross amount of premi ums receivable during the taxation year less the aggregate of (

a) an amount equal to the cash value of the dividends paid or credited to the insurance company's policy-holders during the taxation year, and (

b) an amount equal to the premiums returned during the taxation year 88(1) The tax imposed under this

Part is not payable, (

a) by a company transacting life insurance, on amounts re ceivable as consideration for an annuity contract, (

b) in respect of premiums receivable under a contract of marine insurance, (

c) in respect of a premium or a portion of a premium that an insurance company does not retain under a risk distribu tion plan, or (

d) by a reinsurer in respect of reinsurance premiums paid or credited to it by an insurer

(2) For the purposes of this Part, a premium or a portion of a premium that an insurance company directly or indirectly re ceives under a risk distribution plan is deemed not to be a rein surance premium. 89(1) An insurance company liable to pay a tax under this Part for a taxation year shall file a return with the Provincial Treasurer in the prescribed form and containing the prescribed information on or before March 15 in the year following the taxation year showing an estimate of the amount of tax payable by the com pany in respect of the taxation year and shall remit to the Prov incial Treasurer the amount of tax payable by it in respect of the taxation year. 19

HQ Explanatory Notes

(2) Whether or not an insurance company is liable to pay tax under this Part for a taxation year and whether or not a return has been filed under subsection (1) or (3), an insurance company shall, on receipt of a notice served personally or by certified mail or registered letter by the Provincial Treasurer, file with the Prov incial Treasurer, within any reasonable time stipulated by the Provincial Treasurer in the notice, a retum for the taxation year designated in the notice in the prescribed form and containing the prescribed information.

(3) A trustee in bankruptcy, assignee, liquidator, curator, re ceiver, tmstee or committee and an agent or other person admin istering, managing, winding up, controlling or otherwise dealing with the property, business, estate or income of an insurance company that has not filed a retum for a taxation year as required by this

section shall file the retum required by subsection (1) for that insurance company for that year 90 An insurance company that has failed to file a retum as and when required by this

Part is liable to a penalty equal to the aggregate of (

a) an amount equal to 5% of the aggregate of the tax that was unpaid when the retum was required to be filed, and (

b) the product obtained when 1% ofthe amount under clause (

a) is multiplied by the number of complete months, not ex ceeding 12, in the period between the day on which the retum was required to be filed and the day on which the retum was filed. 91 If, at any time after the day on or before which a return under

section 89 of an insurance company was required to be filed for a taxation year, the amount of its tax payable for the year exceeds the aggregate of all amounts each of which is an amount paid at or before that time on account of tax payable and applied as at that time by the Provincial Treasurer to reduce the insurance company's liability for an amount payable for the year under this Part, the insurance company liable to pay the tax shall pay to the Provincial Treasurer interest at the prescribed rate on the excess computed for the period during which that excess is outstanding. 92(1) Subject to subsections (2) and (3), sections 39(6), 41(1), 42, 43, 45, 46, 47(2) to (4) and (4.2) to (5) and 48 to 84 apply to this Part.

(2) In the application to this Part of the sections referred to in subsection (1), (a) sections 2(8) and 4.1 do not apply, (b)

section 43(1) shall be read as if clauses (

b) and (c)(ii) of that subsection were stmck out, (c)

section 43(2) shah be read as if the reference to the cor poration's income were to the "amount of premiums receiv able" by the corporation as defined in

section 87(3), 20

20 Explanatory Notes

(

d) a reference to a corporation shall be read as a reference to an insurance company, (

e) the amount of refundable tax credits to which an insur ance company is entitled for a taxation year is deemed to be nil, and (

f) all references to retums, information, liabilities, tax, in terest and penalties or amounts in respect of liabilities, tax, interest and penalties are deemed to be references to returns, information, liabilities, tax, interest and penalties under this Part or amounts in respect of liabilities, tax, interest and pen alties under this Part, except as provided in subsection (3)(b).

(3) In the application of

section 47 for the purposes of this Part (a) "overpayment" of an insurance company for a taxation year means the amount, if any, by which all amounts paid on account of the insurance company's liability under this Part for a taxation year exceeds all amounts payable by the insur ance company under this

Part in respect of the year, and (

b) a liability of an insurance company that may be reduced by the application of an amount to the liability by the Prov incial Treasurer includes any liability under this Act. (2) Subsection (1) applies to 1987 and subsequent tdxation years as defined in

section 86(l)(

i) ofthe Alberta Corporate Income Tax Act as enacted by subsection (1).

PART 2 ALBERTA INCOME TAX ACT 28 The Alberta Income Tax Act is amended by this Part. 29(1) The following is added after

section 1(3):

(3.1) Interest computed at the applicable rate under any of sec tions 23.1(1), 25(1), (2) or (11), 28(3) to (4) or 44(6) or (7) shall be compounded daily, and, if interest is computed on an amount under any of those provisions and is unpaid on the day it would, but for this subsection, have ceased to be computed under that provision, interest at the applicable rate for that provision shall be computed and compounded daily on the unpaid interest from that day to the day it is paid. (2) Subsection (1) applies after December 31, 1986, and interest com puted in respect of a period ending before January 1, 1987 shall be compounded on and after that day. 30(1)

Section 3 is amended (

a) in subsection (3)(

e) by striking out "and subsequent" and sub stituting'', 1985 and 1986"; (

b) in subsection (4) by striking out "In this section" and substi tuting "For the purposes of this

section and sections 3.02 and 3.04"; 21

28 This Part will amend

chapter A-31 ofthe Revised Statutes of Alberta 1980. 29 Compound interest. 30

Section 3(1), (2), (3), (4) and (6) presently read: 3(1) The tax payable under this Act for a taxation year by an individual who resided in Alberta on the last day of the taxation year and had no income earned in the taxation year outside Alberta is the percentage ofthe tax payable under the federal Act for that year specified in subsection (3). 21 Explanatory Notes

(

c) by repealing subsection (6)(a)(

i) and substituting the following: (

i) the amount claimed for that year (

A) under subsection 126(1) ofthe federal Act as a de duction under that Act, or (

B) under

section 127.5 ofthe federal Act in respect of that part of his special foreign tax credit that relates to the amount he would have claimed under subsection 126(1) ofthe federal Act if

section 127.5 ofthe federal Act were not applicable to him, (

d) by adding the following after subsection (6)(a)(i): (i. 1) that proportion ofthe amount claimed for that year under subsection 180.1(1.1) ofthe federal Act that his foreign tax credit under subsection 126(1) ofthe federal Act is of his total deductions under

section 126 ofthe federal Act, (

e) in subsection (6)(a)(iii) by adding "in

section 3.02" after "per centage"; (

f) in subsection (6)(b)(i)(

E) by adding "if he deducted an amount under subsection 122.3(1) ofthe federal Act from his tax other wise payable under

Part I ofthe federal Act," before "the taxpay er's income".

(2) Subsection (l)(a), (

b) and (

e) apply to 1987 and subsequent taxa tion years.

(3) Subsection (I)(

c) applies to taxation years commencing after 1985.

(4) Subsection (l)(

d) applies to 1986 and subsequent taxation years.

(5) Subsection (l)(

f) applies to 1985 and subsequent taxation years. 22

(2) The tax payable under this Act for a taxation vear except the 1982 taxation year by an individual (

a) who resided in Alberta on the last day ofthe taxation vear but had income earned in the taxation year outside Alberta, or (

b) who did not reside in .Alberta on the last day ofthe taxation vear but had income earned in the taxation year in Alberta, is the amount that bears the same relation to the percentage of the tax payable under the federal Act for that year specified in subsection (3) that his income earned in the taxation year in Alberta bears to his income for the year

(3) For the purposes of this section, the percentage ofthe tax payable under the federal Act to be used for computing the tax payable under this

section is (a) 33% in respect ofthe 1970 and the 1971 taxation years; (b) 36% in respect ofthe 1972, 1973 and 1974 taxation years; (c) 26% in respect ofthe 1975 and 1976 taxation years; (d) 38.5% in respect ofthe 1977, 1978, 1979, 1980, 1981, 1982 and 1983 taxation years; (e) 43.5% in respect ofthe 1984 and subsequent taxation years.

(4) In this section, (a) "income earned in the taxation year in Alberta" means the in come earned in the taxation year in Alberta as determined in accord ance with regulations made under paragraph I20(4)(

a) of the federal Act; (b) "income earned in the taxation year outside Alberta" means in come for the year minus income earned in the taxation year in Alberta; (c) "income for the year" means (

i) in the case of an individual resident in Canada during part only of the taxation year in respect of whom

section 114 ofthe federal Act applies, the aggregate of (

A) his income for the period or periods in the year referred to in paragraph 114(

a) of the federal Act as determined in accordance wUh and for the purposes of the federal Act, and (

B) his income for the portion of that year that is not included in the period or periods referred to in paragraph (A), com puted under paragraphs 115(l)(a). (

b) and (

c) of the federal Act as though that portion ofthe year were the whole taxation year (ii) in the case of an individual not resident in Canada at any time in the taxation year his income for the year as computed under paragraphs 115(l)(a), (

b) and (

c) of the federal Act, and (iii) in the case of any other individual, his income for the year as determined in accordance with and for the purposes of the federal Act; (d) "tax payable under the federal Act" means the amount ofthe tax payable by an individual in respect of a taxation year and determined under paragraph 120(4)(

c) of the federal Act for the year in respect of that individual. 22 Explanatory Notes

(6) If an individual resided in Alberta on the last day of a taxation year and had income for the year that included income earned in a country other than Canada in respect of which any non-business-income tax was paid by him to the government of a country other than Canada, he may deduct from the tax payable by him under this Act for that taxation year an amount equal to the lesser of (

a) the amount, if any, by which any non-business-income tax paid bv him for the vear to the government of that country exceeds the sum of ' ' (

i) the amount claimed for that year under subsection 126(1) of the federal Act as a deduction under that Act, (ii) the amount claimed for that year under subsection 122.3(1) of the federal .Act as a deduction under that Act, and (iii) an amount equal to the product of the amount in subclause (ii) and the percentage used in computing the tax payable under this Act for that year, and (

b) that proportion ofthe tax otherwise payable under this Act for that taxation year that (

i) the aggregate of the taxpayer's incomes from sources in that country, excluding any portion thereof that was deductible by him for the year under subparagraph ll6(l)(f)(

i) of the federal Act or in respect of which an amount was deducted by him under

section 110.6 of the federal Act (

A) for that year if

section 114 of the federal Act is not ap plicable or (

B) if

section 114 of the federal Act is applicable, for the pe riod or periods in the year referred to in paragraph (

a) of that

section on the assumption that (

C) no businesses were carried on by him in that country, (

D) no amount was deducted under subsection 91(5) of the federal .Act in computing his income for the year and (

E) the taxpayer's income from employment in that country was not from a source in that country to the extent of the lesser of the amounts determined in respect of his income under paragraphs 122.3(l)(

c) and (

d) of the federal Act for the year is of (ii) the amount, if any, by which (

A) if

section 114 of the federal Act is not applicable to the taxpayer in respect of the year the aggregate of his income for the year and the amounts, if any, included under subsec tion 110.4(2) of the federal Act in computing his taxable in come under that Act for the year or (

B) if

section 114 of the federal Act is applicable to the tax payer in respect ofthe year his income under that Act for the period or periods in the year referred to in paragraph (

a) of that section. 23 Explanatory Notes

31(1) The following is added after

section 3: 3.01 The tax payable under this Act for the 1987 and subse quent taxation years by an individual is the aggregate of the amounts determined under sections 3.02, 3.03 and 3.04. 3.02(1) The basic tax payable under this Act for a taxation year by an individual who resided in Alberta on the last day of the taxation year and had no income eamed in the taxation year outside Alberta is the percentage of the tax payable under the federal Act for that year specified in subsection (3).

(2) The basic tax payable under this Act for a taxation year by an individual (

a) who resided in Alberta on the last day of the taxation year but had income eamed in the taxation year outside Alberta, or (

b) who did not reside in Alberta on the last day of the tax ation year but had income earned in the taxation year in Alberta, is the amount that bears the same relationship to the percentage ofthe tax payable under the federal Act for that year specified in subsection (3) that his income earned in the taxation year in Alberta bears to his income for the year

(3) For the purposes of this section, the percentage of the tax payable under the federal Act to be used for computing the basic tax payable under this

section is 46.5%. 3.03(1) The surtax payable under this Act for a taxation year by an individual is an amount equal to 8% ofthe amount, if any, by which the basic tax payable under

section 3.02 for the taxation year exceeds $3500.

(2) For the purposes of subsection (1), the basic tax payable shall be computed without any addition or deduction being made under

section 120.1 of the federal Act. 3.04(1) The flat rate tax payable under this Act for a taxation year by an individual who resided in Alberta on the last day of the taxation year and had no income eamed in the taxation year outside Alberta is an amount equal to 1% ofthe taxable income of the individual.

(2) The flat rate tax payable under this Act for a taxation year by an individual 24

exceeds (

C) the aggregate of all amounts each of which is an amount (II deducted by the taxpayer under paragraph 111(I)(

b) or

section 110.6 ofthefederal.Act, or (II) deductible bv the taxpayer under paragraph 110(l)(d), (d.l), (d.2), (d.3). if) or (

j) or

section 110.1 of the federal .Act for the year or in respect of the period or periods referred to in paragraph (B), as the case may be. 31 Basic Alberta tax, surtax and flat rate tax. 24 Explanatory Notes

(

a) who resided in Alberta on the last day of the taxation year but had income eamed in the taxation year outside Alberta, or (

b) who did not reside in Alberta on the last day of the tax ation year but had income earned in the taxation year in Alberta is an amount equal to 1% ofthe taxable income ofthe individual eamed in the taxation year in Alberta.

(3) In subsection (2), "taxable income of the individual earned in the taxation year in Alberta" is the proportion of the taxable income of the individual in that taxation year that his income eamed in the taxation year in Alberta bears to his income for the year (2) Subsection (1) applies to 1987 and subsequent taxation years. 32(1)

Section 3.1(

b) is amended bv adding "or 3.02(3)" afier "sechon 3(3)". (2) Subsection (1) applies to 1987 and subsequent taxation years. 33(1)

Section 4 is amended (

a) in subsection (1) by adding "or

section 3.01" after "or (2.2)"; (

b) in subsection (2) by striking out "(2.2) shall" and substituting "(2.2) or

section 3.01 shah"; (

c) in subsection (2)(

e) by striking out "and subsequent" and sub stituting'', 1985 and 1986"; (

d) by adding the following afier subsection (2)(e): (

f) for the 1987 and subsequent taxation years, by an amount equal to the lesser of (

i) the tax otherwise payable for the taxation year, and (ii) the amount, if any, by which $450 exceeds Vi of the tax otherwise payable for the taxation year (2) Subsection (1) applies to 1987 and subsequent taxation years. 34(1)

Section 6(l)(

b) is amended by adding "and his taxable income for the year were the average net income for the year within the meaning of paragraph 119(l)(

c) ofthe federal Act" after "average tax for the year". (2) Subsection (1) applies to 1987 and subsequent taxation years. 25

Section 3.1 presently reads: 3.1 An individual to whom

section 2 is applicable for a taxation year is deemed to have paid on account of his tax for the year an amount equal to the product of (

a) an amount that bears the same relation to the excess determined under subsection 120.1(4) of the federal Act for the year that his in come earned in the taxation year in Alberta bears to his income for the year muhiplied by (

b) the percentage specified in

section 3(3) for the year 33

Section 4 presently reads in part: 4(1) In this section, "tax otherwise payable" means the amount that would, but for

section 120.1 of the federal Act, be the tax otherwise payable under

section 3(1). (2), (2.1) or (2.2) less any royalty tax rebate claimed by an individual under

section 11 for the taxation year

(2) The tax payable by an individual under

section 3(1), (2), (2.1) or (2.2) shall be reduced (

e) for the 1984 and subsequent taxation years, by an amount equal to the lesser of (

i) the tax otherwise payable for the taxation year and (ii) the amount, if any, by which $340 exceeds 1/2 of the tax otherwise payable for the taxation year 34

Section 6(1) presently reads: 6(1) If an individual whose chief source of income has been farming or fishing during a taxation year (in this

section referred to as the "year of averaging") has filed an election in accordance with subsection 119(1) of the federal Act for the year of averaging, the tax payable under this Part for the year of averaging is an amount determined by the following rules: (

a) determine the amount (in this

section referred to as the "average tax") for each year in the averaging period (which, in this section, has 25 Explanatory Notes

35(1)

Section 8(l)(

a) is amended (

a) by adding "or 3.02(3)" after "section 3(3)"; (

b) by striking out "paragraph 122(3)(a)" and substduting "sub

section 122(1)".

(2) Subsection (l)(

a) applies to 1987 and subsequent taxations years.

(3) Subsection (l)(

b) applies to 1985 and subsequent taxation years. 36

Section 10 is amended (

a) in subsection (4.1) by striking out "1983 and subsequent" and substituting "\9S3, 1984, 1985 and 1986"; (

b) by adding the following after subsection (4.1):

(4.2) An individual is not entitled to a renter assistance credit for the 1987 and subsequent taxation years. 26

the meaning given to that expression under

section 119 of the federal Act) equal to the tax that would be payable under the federal Act, within the meaning of

section 3 of this Act, if the taxable income for the year were the average net income for the year within the meaning of paragraph 119(l)(

c) of the federal Act; (

b) determine the amount (in this

section referred to as the "provincial tax") for each 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 3 of this Act, were the average tax for the year; (

c) 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 payable under this Part for the preceding years (which, in this section, has the meaning given to that expression under

section 119 of the federal Act); and the remainder obtained under clause (

c) is the tax payable under this Part for the year of averaging. 35

Section 8(1) and (4) presently read: 8(1) When an amount is to be refunded to a mutual fund trust in respect of a taxation year, pursuant to

section 132 of the federal Act, the Provincial Treasurer shad, subject to subsection (2), at the time and in the manner provided in

section 132 of the federal Act, refund to the mutual fund trust an amount (hereinafter referred to in this

section as its "capital gains refund" for the year) equal to that proportion ofthe amount ofthe refund for the year calculated under subsection 132(1) of the federal Act that (

a) the percentage obtained by multiplying the percentage referred to in

section 3(3) of this Act for the year times the percentage referred to in paragraph 122(3)(

a) of the federal Act for the year is of (

b) the percentage referred to in subparagraph 132(4)(b)(

i) of the fed eral Act for the year

(4) In this section, (a) "income earned in the taxation year in Alberta" has the same meaning as in

section 3; (b) "income earned in the taxation year outside Alberta" has the same meaning as in

section 3; (c) "income for the year" has the same meaning as in

section 3; (d) "mutual fund trust" has the same meaning as in

section 132 of the federal Act. 36

Section 10(4.1) presently reads:

(4.1) A renter assistance credU under this

section for the 1983 and subse quent taxation years shad be an amount equal to the greater of (a) $50, and (

b) the amount obtained when 1% ofthe individual's taxable income for that year is subtracted from the lesser of (

i) the aggregate of $200 and 5% of the total rent paid by that individual during the taxation year and (ii) $500. 26 Explanatory Notes

37(1)

Section 11 is amended (

a) by repealing subsection (l)(

f) and substituting the following: (0 "tax otherwise payable under this Act", or any similar expression, means (

i) with respect to the 1978 to 1986 taxation years (

A) in the case of an individual, the amount that would, but for

section 120.1 of the federal Act, be the tax payable under

section 3(1), (2), (2.1) or (2.2) for that taxation year, and (

B) in the case of a corporation, the tax payable under

section 5(1) for that taxation year, or (ii) with respect to 1987 and subsequent taxation years, the amount that would, but for

section 120.1 of the fed eral Act, be the tax payable by an individual under

section 3.01 for the taxation year; (

b) in subsection (3.1) by striking out "and subsequent" and sub stituting", 1985 and 1986"; (

c) by adding the following after subsection (3.1):

(3.2) For the 1987 and subsequent taxation years, an individ ual is entitled, subject to this

section and the regulations, to a royalty tax rebate in respect of a taxation year in an amount equal to the lesser of (

a) the aggregate of (

i) the product obtained when the proportion of the sum of his attributed Canadian royalty income for the year and his attributed Canadian royalty income carry forward from the immediately preceding taxation year that (

A) his resource income eamed in Alberta for the year as determined in accordance with

Part XXVI of the federal regulations is of (

B) his total resource income for the year is multiplied by 46.5% of his federal basic tax rate for the year, (ii) the amount, if any, by which (

A) the amount determined under

section 3.03 exceeds (B) 8% of the amount, if any, by which (

I) the amount, if any, by which the amount determined under

section 3.02 exceeds the amount determined under subclause (i). 27

Section 11(1), (3.1), (7), (8) and (12.1) presently read: 11(1) In this section, (a) ' 'attributed Canadian royalty income" of a taxpayer for a taxation year means the aggregate of (

i) the amounts required to be included in computing the taxpay er's income for the year by virtue of paragraph 12(l)(

o) of the federal Act, when those amounts relate to the production from oil or gas weds or bituminous sands deposits, od sands deposUs or coal deposits or to any right, licence or privilege to explore for drill for or recover petroleum or natural gas or to explore for mine quarry, remove, treat or process bituminous sands or od sands or to win or work mines, seams or beds of coal, (ii) the amounts in respect of which no deduction is allowed in computing the taxpayer's income for the year by virtue of para graph 18(1 )(

m) of the federal Act, other than an amount described in paragraph 66.2(5)(

a) or 66.4(5)(

a) of the federal Act, when those amounts relate to the production from od or gas wells or bitumi nous sands deposits, oil sands deposits or coal deposUs or to any right, licence or privilege to explore for, drill for or recover petro leum or natural gas or to explore for mine, quarry, remove, treat or process bituminous sands or od sands or to win or work mines, seams or beds of coal, (in) any amounts by which the fair market value (as determined under subsection 69(8) of the federal Act) of petroleum, natural gas or coal disposed of under disposUions referred to in subsection 69(9) of the federal Act, exceeds the proceeds of disposition, if any, actually received by him in respect of the petroleum, natural gas or coal so disposed of, and (iv) any amounts by which the amount referred to in subsection 69(7) of the federal Act in respect of acquisitions of petroleum, natural gas or coal referred to in that subsection exceeds the fair market value (as determined under subsection 69(6) of the federal Act) ofthe petroleum, natural gas or coal so acquired, less the aggregate of (

v) the amount allowed to the taxpayer for the year under para graph 20(l)(vl) of the federal Act in respect of od or gas wells or bituminous sands deposUs, od sands deposUs or coal deposits, and (vi) the amount of any reimbursement received by the taxpayer under the terms of a contract, when the reimbursement was for an amount paid or payable by the taxpayer that is required to be included in computing his income or denied as a deduction in computing his income by virtue of paragraph 12(l)(

o) or 18(1 )(

m) of the federal Act in respect ofod or gas wells or bituminous sands deposUs, od sands deposits or coal deposUs; (b) "federal basic tax rate" of a taxpayer for a taxation year means the proportion that his tax payable under the federal Act for the year computed wUhout reference to

section 120.1 of the federal Act is of his taxable income for the year expressed as a percentage (c) "resource income" means income reasonably attributable to pro duction from od and gas wells or bituminous sands deposits, od sands deposits or coal deposits or to any right, licence or privilege to explore for drid for or recover petroleum or natural gas or to explore for mine, quarry, remove treat or process bituminous sands or od sands or to win or work mines, seams or beds of coal; 27 Explanatory Notes

exceeds (II) $3500, and (iii) the product obtained when 1% is multiplied by the proportion of the sum of his attributed Canadian royalty income for the year and his attributed Cana dian royalty income carry forward from the immedi ately preceding taxation year that (

A) his resource income eamed in Alberta for the year as determined in accordance with

Part XXVI of the federal regulations is of (

B) his total resource income for the year, and (

b) his tax otherwise payable under this Act for the year (

d) in subsection (7)(a)(vi) by striking out "and subsequent" and substituting", 1985 and 1986"; (

e) by adding the following after subsection (7):

(7.1) When there is tax otherwise payable under this Act by an individual in the 1987 or a subsequent taxation year, the attributed Canadian royalty income carried forward to the immediately succeeding taxation year is the quotient ob tained when (

a) the amount, if any, by which the amount determined under subsection (3.2)(a)(

i) exceeds the amount deter mined under

section 3.02 if the amount under

section 3.02 were determined without reference to

section 120.1 of the federal Act is divided by (

b) the product of (i) 46.5% of his federal basic tax rate, and (ii) the quotient obtained when his resource income eamed in Alberta in the taxation year (as determined in accordance with

Part XXVI of the federal regula tions) is divided by his resource income for that tax ation year (

f) in subsection (8) by striking out "and (7)" and substituting ",(7) and (7.1)"; (

g) in subsection (12.1) by adding "tax" after "royalty".

(2) Subsection (l)(

a) to (

J) apply to 1987 and subsequent taxation years. 28

(d) "royalty tax rebate" means a rebate to which a taxpayer is entUled under this section; (e) "tax otherwise payable under this Act", or any similar expression, means, with respect to the 1977 and earlier taxation years, the tax payable under this Act wUhout reference to this

section and

section 12; (f) "tax otherwise payable under this Act", or any similar expression, means, with respect to the 1978 and subsequent taxation years, (

i) in the case of an individual, the amount that would, but for

section 120.1 of the federal Act, be the tax payable under

section 3(1), (2), (2.1) or (2.2) for that taxation year and (ii) in the case of a corporation, the tax payable under

section 5(1) for that taxation year; (g) "tax payable under the federal Act" means the amount that would, but for

section 120.1 of the federal Act, be the tax otherwise payable by an individual in respect of a taxation year determined under

section 3(4)(

d) for the year in respect of that individual.

(3.1) For the 1984 and subsequent taxation years, an individual is entitled, subject to this

section and the regulations, to a royalty tax rebate in respect of a taxation year in an amount equal to the lesser of (

a) the product obtained when the proportion ofthe sum of his attrib uted Canadian royalty income for the year and his attributed Cana dian royalty income carry forward from the immediately preceding taxation year that (

i) his resource income earned in Alberta for the year as deter mined in accordance with

Part XXVI of the federal regulations is of (ii) his total resource income for the year is multiplied by 43.5% of his federal basic tax rate for the year and (

b) his tax otherwise payable under this Act for the year

(7) When there is tax otherwise payable under this Act by a taxpayer for a taxation year the attributed Canadian royalty income carried forward to the immediately succeeding taxation year is (

a) in the case of an individual, the quotient obtained when (

i) the amount, if any by which the product determined for him for the year under subsection (2)(a), (3)(

a) or (3.1)(

a) exceeds his tax otherwise payable under this Act for the year is divided by (ii) in the case ofthe 1974 taxation year the product of (A) 36% of his federal basic tax rate, and (

B) the quotient obtained when his income earned in Alberta in the 1974 taxation year (as determined in accordance with

Part XXVI of the federal regulations) is divided by his income for that taxation year (iii) in the case ofthe 1975 and 1976 taxation years, the product of (A) 26% of his basic federal tax rate and (

B) the quotient obtained when his income earned in Alberta in the taxation year (as determined in accordance with

Part 28 Explanatory Notes

38(1)

Section 12.1 is amended (

a) in subsection (3) by striking out "and" at the end of clause (b), by repealing clause (

c) and by substituting the following; (

c) for the 1987 taxation year, 95%, and (

d) for the 1988 and subsequent taxation years, 75%. 29

XXVI of the federal regulations) is divided by his income for that taxation year (iv) in the case of the 1977 taxation year the product of (A) 38.5% of his basic federal tax rate, and (

B) the quotient obtained when his income earned in Alberta in the taxation year (as determined in accordance with

Part XXVI of the federal regulations) is divided by his income for that taxation year (

v) in the case ofthe 1978, 1979, 1980, 1981, 1982 and 1983 taxation years, the product of (A) 38.5% of his basic federal tax rate, and (

B) the quotient obtained when his resource income earned in Alberta in the taxation year (as determined in accordance with

Part XXVI of the federal regulations) is divided by his resource income for that taxation year; or (vi) in the case of the 1984 and subsequent taxation years, the product of (A) 43.5% of his basic federal tax rate, and (

B) the quotient obtained when his resource income earned in Alberta in the taxation year (as determined in accordance with

Part XXVI of the federal regulations) is divided by his resource income for that taxation year; (

b) in the case of a corporation, the quotient obtained when (

i) the amount, if any, by which the amount determined for it for the year under subsection (4)(

a) exceeds its tax otherwise payable under this Act for the year is divided by (ii) 11% ofthe quotient obtained when its taxable income earned in Alberta for the year (as determined in accordance with

Part IV of the federal regulations) is divided by its taxable income for the year

(8) Notwithstanding subsections (6) and (7), a taxpayer is not entitled to carry forward his attributed Canadian royalty income for a taxation year under those subsections unless (

a) in the case of a corporation, the corporation had a permanent establishment in Alberta at some time during that year or (

b) in the case of an individual, the individual either had a permanent establishment in Alberta at some time during that year or was resident in Alberta on the last day of that year

(12.1) Notwithstanding subsections (11) and (U.l), no application for a royalty rebate in respect ofthe 1974, 1975, 1976, 1977 or 1978 taxation years shad be made after December 31, 1984. 38

Section 12.1(3) and (6) presently read:

(3) The specified percentage of an individual's Alberta crown royalty for a taxation year is, (

a) for the 1982 and 1983 taxation years, 75%, (

b) for the 1984 and 1985 taxation years, 50%, and (

c) for the 1987 and subsequent taxation years, 75%. 29 Explanatory Notes

(

b) by repealing subsection (6)(

c) and substituting the following: (

c) in a 1987 taxation year, if the fiscal period ofthe business or partnership commenced in 1986, the specified percentage with respect to the portion of his Alberta crown royalty that arose from royalties that became receivable or payable by that business or partnership before April 1, 1986 shall be 50%, and (

c) in subsection (6) by striking out "and" at the end of clause (

b) and by adding the following after clause (c); (

d) in a 1988 taxation year, if the fiscal period ofthe business or partnership commenced in 1987, the specified percentage with respect to the portion of his Alberta crown royalty that arose from royalties that became receivable or payable by that business or partnership before January 1, 1988 shall be 95%. (2) Subsection (1) applies to 1987 and subsequent taxation years. 39(1)

Section 13.1 is amended (

a) by repealing subsection (l)(b)(ii)(

A) and substituting the follow ing: (

A) if the eligible share is issued for consideration consisting only of money, the amount of money paid by the eligible investor for the eligible share, including (

I) any applicable underwriters' fees paid by the eligible investor for the eligible share, and (II) any amount paid by the eligible investor to the elig ible corporation to acquire a warrant that forms part of the specified share issue that included the eligible share and evidenced the right to acquire another share that is not precluded from being an eligible share of the eligible corporation, but not including (III) any brokerage or custody fee or similar charge, and (IV) any amount paid to acquire a warrant that evi denced the right to acquire that eligible share, (

b) in subsection (16) by adding "including the Social Insurance Number of the individual" after "investment".

(2) Subsection (l)(

a) applies to 1986 and subsequent taxation years.

(3) Subsection (l)(

b) applies to statements of investments for the 1987 and subsequent taxation years. 30

(6) NotwUhstanding subsection (3), if an individual has Alberta crown roy ahy in a ta.xation year with respect to a business or partnership, (

a) in a 1982 ta.xation year if the fiscal period of the business or partnership commenced before September 1, 1981, the specified per centage with respect to the portion of his Alberta crown royalty that arose from royalties that became receivable or payable by that business or partnership before September I, 1981 shall be 25%, lb) in a 1984 ta.xation year if the fiscal period of the business or partnership commenced before 1984, the specified percentage with re spect to the portion of his .Alberta crown royalty that arose from roy alties that became receivable or payable by that business or partner ship before January 1, 1984 shall he 75%, and (

c) in a 1987 ta.xation year if the fiscal period of the business or partnership commenced in 1986, the specified percentage with respect to the portion (f his .Alberta crown royalty that arose from royalties that became receivable or payable by that business or partnership (

i) before .April I, 1986 shall he 50%, and (ii) ahcr .March 31, 1986 and before January 1, 1987 shall be 95'>n. 39 Scction 13.1(1 )(

b) and (16) presently read: 13.1(1) In this section. (b) "cost amount" means, li) with respect to an eligible share issued by an eligible corpora tion under a certificate of eligibility applied for on or before April 7. 1986, the actual subscription price, including any applicable underwriters' fees paid by the eligible investor hut not including any brokerage or custody fees or similar charges, and (ii) with respect to an eligible share issued by an eligible corpo ration under a certihcate of eligibility applied for after April 7, 1986. (

A) if the elii^ible share is issued for consideration consisting only of money the amount of money paid by the eligible investor for the eligible share including any applicable un derwriters' fees paid by the eligible investor for the eligible share but not including (

I) any brokerage or custody fee or similar charge, or (II) any amount paid to acquire a warrant that evidenced the right to acquire the eligible .share or (

B) if the ehgible share is issued for consideration consisting (

I) only of property or past service or (II) partly of money and partly of property or past .ser vice an amount not exceeding the amoimt, if any by which the aggregate of (III) the amount, if any of money paid by the eligible investor for the eligible share as determined in accord ance with paragraph (.A), and 30 Explanatory Notes

40(1)

Section 17 is amended (

a) in subsections (1.1), (1.2) and (1.3) by striking out "or farm loss" wherever d occurs and substituting ", farm loss or limited partnership loss"; (

b) in subsection (7) by striking out "or" at the end of clause (

c) and by adding the following after clause (d): (

e) a deduction under subsection 120.2(2) ofthe federal Act in respect of his minimum tax for a subsequent taxation year or (

f) a deduction by virtue of an election for a subsequent tax ation year under paragraph 164(6)(

c) or (

d) of the federal Act by his legal representative

(2) Subsection (l)(

a) applies afier February 25, 1986.

(3) Subsection (l)(

b) applies to 1984 and subsequent taxation years. 31

(IV) the fair market value ofthe property or past service in consideration for which the eligible share was issued, exceeds the fair market value of any consideration issued or granted by the corporation other than an eligible share or a warrant that evidences the right to acquire an eligible share;

(16) Before March 1 in each year a qualified dealer who held eligible shares under a stock savings plan for an individual during the preceding year shall send to the Minister of National Revenue a copy ofthe statement of investment provided to the individual pursuant to

section 2(3) of the Alberta Stock Savings Plan Act. 40

Section 17( 1.1), (1.2), (1.3) and (7) presently read:

(1.1) Where the Provincial Treasurer ascertains the amount of a taxpay er's non-capital loss, net capital loss, restricted farm loss or farm loss for a taxation year and the taxpayer has not reported that amount as such a loss in his return for that year the Provincial Treasurer shad, at the request ofthe taxpayer determine, wUh ad due dispatch, the amount of that loss and shall send a notice of determination to the person by whom the return was filed.

(1.2) The provisions of paragraphs 56(1 )(0 and 60(o), Division I and Di vision J of the federal Act, as they relate to an assessment or reassessment and to assessing tax and reassessing tax, are applicable with ad necessary modifications to a determination or redetermination and to determining and redetermining amounts under this Division, except that subsections (1) and (2) of this

section are not applicable to determinations made under subsection (I.

l) and, for greater certainty, an original determination of a taxpayer's non-capital loss, net capital loss, restricted farm loss or farm loss for a taxation year may be made by the Provincial Treasurer only at the request ofthe taxpayer

(1.3) For greater certainty, where the Provincial Treasurer makes a deter mination of the amount of a taxpayer's non-capital loss, net capital loss, restricted farm loss or farm loss for a taxation year under this Act or in the case of a corporation, under this Act or under the new .Act. subject to the taxpayer's rights of objection and appeal in respect ofthe determina tion and subject to any redetermination by the Provincial Treasurer under this Act or in the case of a corporation, under this Act or under the new Act, the determination is binding on both the Provincial Treasurer and the taxpayer for the purposes of calculating the taxable income ofthe taxpayer in any other year

(7) Where a taxpayer other than a corporation to which subsection (7.1) applies, has filed for a particular taxation year the return required by

section 15 and an amount is subsequently claimed by him or on his behalf for the year as (

a) a deduction under paragraph 3(

e) of the federal Act, by virtue of his death in a subsequent taxation year and the consequent application of

section 71 of the federal Act in respect of an allowable capital loss for the year (

b) a deduction under

section 41 of the federal Act in respect of his listed-personal-property loss for a subsequent taxation year (

c) a deduction under

section 110 of the federal Act in respect of a gifi made in a subsequent taxation year or under

section III of the federal Act in respect of a loss for a subsequent taxation year or (

d) a deduction under subsection 127.3(1) of the federal Act in respect of his unused scientific research tax credUfor a subsequent taxation year 31 Explanatory Notes

Section 19 is amended by adding the following after subsection (If

(1.1) In its application to the 1986 taxation year, subsection (l)(a)(

i) shall be read as fohows: (

i) the amount estimated by the individual to be the tax pay able under this Act for the year computed without reference to

section 127.3 and Division E.l ofthe federal Act, or 42

Section 20 is amended by adding the following after subsection (1):

(1.1) In its application to the 1986 taxation year, subsection (l)(a)(

i) shall be read as follows: (

i) the amount estimated by the individual to be the tax pay able under this Act for the year computed without reference to

section 127.3 and Division E.l ofthe federal Act, or 43(1)

Section 25 is amended (

a) in subsection (2) by striking out "prescribed rate" and substi tuting "rate prescribed for the purpose of subsection 161(2) ofthe federal Act"; (

b) in subsection (9)(

a) by adding the following after subclause (iv): (iv.Ol) any amount deducted under subsection 126(2) ofthe federal Act in respect of an unused foreign tax credit, within the meaning assigned by paragraph 126(7)(

e) of the federal Act, for a subsequent taxation year, (

c) in subsection (9)(

a) by striking out "or" at the end of clause (iv.

l) and by adding the following after subclause (iv.l): (iv.2) any amount deducted under subsection 120.2(2) ofthe federal Act in respect of his minimum tax for a subsequent taxation year, or 32

by filing wUh the Provincial Treasurer a prescribed form amending the return, on or before the day on which the taxpayer is, or would be if a tax under this Act were payable by him for that subsequent taxation year required by

section 15 to file a return for that subsequent taxation year the Provincial Treasurer shall reassess the taxpayer's tax for any relevant taxation year other than a taxation year preceding the particular taxation year in order to take into account the deduction claimed. 41

Section 19(1) presently reads: 19(1) Every individual, except an individual to whom

section 18(2) applies, whose chief source of income is farming or fishing shad pay to the Prov incial Treasurer (

a) on or before December 31 in each taxation year, 2/3 of (

i) the amount estimated by him to be his tax payable under this Act for the year computed without reference to

section 127.3 ofthe federal Act, or (ii) his tax payable under this Act for the immediately preceding year and (

b) on or before Aprd 30 in the next year, the remainder ofthe tax as estimated under

section 16. 42

Section 20(1) presently reads: 20(1) Every individual, other than one to whom

section 18(2) or

section 19 applies, shad pay to the Provincial Treasurer (

a) on or before March 31. June 30, September 30 and December 31, respectively in each taxation year an amount equal to 25% of (

i) the amount estimated by him to be his tax payable under this Act for the year computed wUhout reference to

section 127.3 ofthe federal Act, or (ii) his tax payable under this Act for the immediately preceding year and (

b) on or before Aprd 30 in the next year the remainder ofthe tax as estimated under

section 16. 43

Section 25(2) and (9) presently read:

(2) In addition to the interest payable under subsection (I), when a tax payer who is required by this Act to pay a part or instalment of tax has failed to pay ad or any part of U on or before the day on or before which the tax or instalment, as the case may be, was required to be paid he shaU pay to the Provincial Treasurer interest at the prescribed rate on the amount that he failed to pay computed from the day on or before which the amount was required to be paid to the day of payment, or to the beginning ofthe period in respect of which he is required to pay interest on U under subsec tion (1), whichever is earlier

(9) For the purpose of computing interest under subsection (

I) or (2) on tax or a part or an instalment of tax for a taxation year (

a) the tax payable by the taxpayer shad be deemed to be the amount that U would have been if none of the following amounts, namely (

i) repealed 1986 c5 si3, 32 Explanatory Notes

(

d) by adding the following after subsection (10);

(11) If a taxpayer is required by this Part to pay a penalty and fails to pay all or any part of it as required, he shall pay to the Provincial Treasurer interest at the rate prescribed for the purposes of subsection 161(11) of the federal Act on the amount he failed to pay computed, (

a) in the case of a penalty payable by virtue of secfion 26 or 27, from the day on or before which the taxpayer's retum for the taxation year in respect of which the penalty is payable is, or would have been if tax under this Act were payable by him for the year, required to be filed to the day of payment, and (

b) in the case of a penalty payable by virtue of any other

section of this Act, from the day of mailing of the nofice of original assessment of the penalty to the day of pay ment.

(2) Subsection (l)(

a) applies after October 28, 1985.

(3) Subsection (l)(

b) and (

c) apply to 1984 and subsequent taxation years.

(4) Subsection (l)(

d) applies after December 31, 1986 except that in terest is not payable under

section 25(11) ofthe Alberta Income Tax Act as enacted by subsection (l)(

c) for any part of a period before January 1, 1987. 44(1)

Section 28 is amended (

a) in subsection (3) by striking out "paid on account of a taxpay er's tax under this Act for a taxation year is refunded or repaid" and substituting "in respect of a taxation year is refunded or repaid to a taxpayer"; (

b) in subsection (4) by striking out "tax" and substituting "an amount ; (

c) in subsection (7) by striking out "or" at the end of clause (e), by addmg or" at the end of clause (e. 1) and by adding the follow ing after clause (e.l): 6 -/ ^%\ the deduction of an amount under subsection 120.2(2) ofthe federal Act in respect of his minimum tax for a sub sequent taxation year. 33

(ii) any amount deducted under

section 41 of the federal Act in respect of his listed-personal-property loss for a subsequent taxa tion year (iii) any amount excluded from his income for the year by virtue of

section 49 of the federal Act in respect of the exercise of an option in a subsequent taxation year, (iv) any amount deducted under

section 110 of the federal Act in respect of a gifi made in a subsequent taxation year or under

section 111 of the federal Act in respect of a loss for a subsequent taxation year (iv.

l) any amount deducted in computing his income for the year by virtue of an election in a subsequent taxation year under par agraph 164(6)(

c) or (

d) of the federal Act by his legal representa tive, or (

v) any amount deducted under subsection 127.3(1) of the federal Act in respect of his unused scientific research tax credit for a subsequent taxation year, were so excluded or deducted for the year, as the case may be, and (

b) the amount by which the tax payable by the taxpayer for the year is reduced by virtue ofthe exclusion or deduction, as the case may be, of an amount described in clause (a)(

i) to (

v) shad be deemed to have been paid by the taxpayer on account of his tax payable for the year on the day that is the latest of (

i) the first day immediately following that subsequent taxation year (ii) the day on which the taxpayer's or his legal representative's return for that subsequent taxation year was filed, (iii) if an amended return ofthe taxpayer's income for the year or a prescribed form amending his return for the year was filed in accordance with subsection 49(4) of the federal Act or

section 17(7) or 28(8) of this Act, the day on which the amended return or prescribed form was filed, and (iv) if, as a consequence of a request in writing, the Provincial Treasurer reassessed the taxpayer's tax for the year to take into account the deduction or exclusion, the day on which the request was made. 44

Section 28(3), (4), (7) and (7.2) presently read:

(3) If under this

section an amount paid on account of a taxpayer's tax under this Act for a taxation year is refunded or repaid, or applied to another liability, the Provincial Treasurer shad pay or apply interest on the amount at the rate prescribed for the purposes of subsection 164(3) of the federal Act for the period beginning on the day that is the latest ofthe following days: (

a) the day on or before which the taxpayer's return under this Act for the year was required to be filed under

section 15 or would have been required to be so filed if tax under this Act were payable by him for the year (

b) the day on which the taxpayer's return under this Act for the year was filed under

section 15, unless the return was filed on or before the day on or before which U was required to be filed, or would have been required to be filed if tax under this Act were payable by him for the year 33 Explanatory Notes

(

d) in subsection (7.2) by striking out "or" at the end of clause (e), by adding "or" at the end of clause (e. 1) and by adding the follow ing after clause (e.l): (e.2) the deduction of an amount under subsection 120.2(2) of the federal Act in respect of his minimum tax for a sub sequent taxation year,

(2) Subsection (l)(

a) and (

b) apply after December 31, 1986, except that interest is not payable under

section 28(3) ofthe Alberta Income Tax Act as amended by subsection (l)(a)for any part of a period before January 1, 1987 on an amount refunded or repaid in respect of inter est or a penalty paid by a taxpayer.

(3) Subsection (l)(

c) and (

d) apply to 1984 and subsequent taxation years. 34

(

c) in the case of a refund of an overpayment, the day the overpayment arose, and (

d) in the case of a repayment of tax in controversy, the day an over payment equal to the amount ofthe repayment would have arisen if the tax payable by the taxpayer under this Act for the year were the amount by which (

i) the lesser of the amount paid on account of his tax payable under this Act for the year and the amount assessed by the Prov incial Treasurer as tax payable under this Act by the taxpayer for the year exceeds (ii) the amount repaid, and ending on the day the amount is refunded, repaid or applied, unless the amount ofthe interest so calculated is less than $1, in which event no interest shad be paid or applied under this subsection.

(4) If at any particular time interest has been paid to, or applied to a liability of, a taxpayer pursuant to subsection (3) in respect of the repay ment of tax in controversy made to, or applied to a liability of, the taxpayer and it is determined at a subsequent time that the repayment or a part of it is payable by the taxpayer under this Act, the following rules apply: (

a) the interest so paid or applied on that part ofthe repayment that is determined at the subsequent time to be payable by the taxpayer under this Act shad be deemed to be an amount, in this subsection referred to as the "interest excess", that became payable under this Act by the taxpayer at the particular time; (

b) the taxpayer shad pay to the Provincial Treasurer interest at the rate prescribed for the purposes of subsection 164(4) of the federal Act on the interest excess computed from the particular time to the day of payment; (

c) the Provincial Treasurer may at any time assess the taxpayer in respect of the interest excess and, if the Provincial Treasurer makes such an assessment, the provisions of this Act are applicable in respect ofthe assessment as if it had been made under

section 17.

(7) For the purpose of computing interest under subsection (3), the portion of any overpayment ofthe tax payable by a taxpayer other than a corpo ration to which subsection (7.1) applies, for a taxation year that arose as a consequence of (

a) repealed 1986 c5 si5, (

b) the deduction of an amount under

section 41 of the federal Act in respect of his listed-personal-property loss for a subsequent taxation year (

c) the exclusion of an amount from his income for the year by virtue of

section 49 of the federal Act in respect ofthe exercise of an option in a subsequent taxation year (

d) the deduction of an amount under

section 110 of the federal Act in respect of a gift made in a subsequent taxation year or under

section HI of the federal Act in respect of a loss for a subsequent taxation year (

e) the deduction of an amount under subsection 1

Document details

Collection	Alberta — Bills
Citation	L21 S2 3096
Type	bill
Volume / chapter	L21 S2 3096
Language	en
Format	json
Source	PROVINCIAL
Identifier	405805e904ecb0093042beb5c1583c1b6694c5ec

Source file is stored in the law ingest library (json).