Bill 93 (Legislature 7, Session 5)

L7 S5 8581

Alberta — Bills

BILL No. 93 of 1935.

An Act to amend The Income Tax Act. (Assented to , 1935.) HIS MAJESTY, by and with the advice and consent of the Legislative ASlSembly of the Province of Alberta, enacts as follows: 1. This Act may be cited as "The Income Tax Act Amend ment Act, 1935." 2. The Income Tax Act, being

chapter 5 of the Statutes of Alberta, 1932, is hereby amended as to

section 3 thereof by adding at the end thereof the following new paragraphs: "(

f) all moneys received by any person on account of or in respect of any annuity; "(

g) the gross amount earned by, derived by, accrued to or received by any person on account of any gratu ity, royalty, rent or other periodic payment in respect of or on account of any right, property or interest in any land, and without derogating from the generality of the foregoing, in any mine, quarry, oil well, gas well or timber limit." 3. The said Act is further amended as to

section 4 thereof by adding at the end thereof the following new paragraph: " (

n) The income of railway companies which pay taxes under The Railway Taxation Act." 4. The said Act is further amended as to

section 5 there of- (

a) by striking out paragraph (

a) of subsection (1) thereof and by substituting therefor the following: "(

a) Such reasonable amount as the Minister may in his discretion allow for depreciation, and the Minister in determining the income derived in respect of the operation of any property which is a mine, quarry, oil well, gas well or timber limit by any person who is operating the same as owner or lessee or who is the lessor thereof, shall make such allowance for the exhaustion of the mine, quarry, oil well, gas well or timber limit as he may deem just and fair, but no such allowance shall be made for any year if that allowance, when added to any allowances made to any taxpayer in respect thereof for any

2 previous years, will make the aggregate amount of the allowances exceed the total value of the asset as determined by the Minister: and in the case of leases of mines, quarries, oil wells, gas wells or timber limits, the lessor and the lessee may apportion the amount of the allowance between them in such proportion as may be agreed upon, and in default of agree ment, the Minister may and is hereby em powered to apportion the allowance between them, and any apportionment so made shall be binding and conclusive upon them, and each of them shall be entitled to exemption in re spect of the amount of the allowance so appor tioned to him;" ; (

b) by striking out paragraph (

i) of subsection (1) thereof and by substituting therefor the following: "(

i) The amount not exceeding four hundred dol lars actually expended by a taxpayer for the support of each of the following persons, ex cept in cases wherein exemption (whether of four hundred dollars or seven hundred and fifty dollars) in respect of such persons is already provided for in this Act: "(

i) A parent or grandparent dependent on account of mental or physical infirmity; "(ii) A brother or sister under twenty-one years of age or twenty-one years of age or over if dependent on account of mental or physical infirmity"; (

c) by adding at the end of subsection (1) thereof the following new paragraph: "(

k) In the case of an annuity payable to and for the benefit of the purchaser thereof, one-half of the sum so payable to that person for his benefit"; (

d) by striking out subsection (2) thereof and by sub stituting therefor the following new subsections: "

(2) Where a husband and wife have each a sep arate income in excess of seven hundred and fifty dollars, whether taxable or not, each shall receive an exemption of seven hundred and fifty dollars in lieu of the exemption set forth in paragraph (

c) of the immediately preceding subsection. "(2(1,) Where either a husband or wife has an income in excess of seven hundred and fifty dollars, whether taxable or not, and the other has an income of seven hundred and fifty dollars or less, whether taxable or not, then the income of the lesser shall be added to the income of the other for the purpose of ascertaining the taxes payable under this Act unless the husband and wife each file a separate return and each claim an exemption of seven hundred and fifty dollars" ;

3 (

e) by adding at the end thereof the following new sub sections: "( 4) The exemptions and deductions authorized by paragraphs (c), (d), (

e) and (

i) of subsection (1) shall not apply in respect of the income of any taxpayer who is not resident in the Province. "

(5) No exemption on account of exhaustion, de pletion or depreciation of the property of any cor portion or joint stock company shall be allowable in respect of any dividend payable to any shareholder in the corporation or joint stock company or in re spect of any other disposition of any profits of the corporation or joint stock company payable to a shareholder thereof." 5. The said Act is further amended as to

section 8 thereof- (

a) by striking out subsections (2) and (3) thereof and by substituting therefor the following: "

(2) Save as herein otherwise provided, corpora tions and joint stock companies, no matter how created or organized carrying on business within the Province, shall pay a tax at the rate applicable thereto set forth in the first

schedule of this Act. "

(3) Where the tax imposed upon a corporation or joint stock company by this Act exceeds the tax imposed upon the same corporation or joint stock company under sections 4 to 17 inclusive of The Corporations' Taxation Act, the company shall pay under this Act only the amount of the excess" ; (

b) by striking out subsection (4) thereof; (

c) by striking out subsection (5) thereof; (

d) by striking out subsection (6) thereof; (

e) by adding at the end thereof the following new sub section: "( 4) Where the Superintendent of Income Tax is unable to determine or obtain the information re quired to ascertain the income within the Province of any corporation or joint stock company or any class of corporations or joint stock companies the Min ister may make regulations for determining such income within the Province and he may fix or deter mine the tax to be paid by any corporation or joint stock company liable to taxation." 6. The said Act is further amended as to

section 20 there of by striking out the same and by substituting therefor the . following: "20.-

(1) The income of a personal corporation, wheth~r the same is actually distributed or not, shall be deemed to be distributed on the last day of each year as a dividend to the shareholders and every such shareholder who is liable to taxation und~r this Act shall be taxable in each year as if the same had been distributed in the proportion hereinafter mentioned.

4 "

(2) The portion of the income of a personal corporation in respect of which a shareholder is liable to taxation shall be such percentage of the income of the corporation as the value of all property transferred or loaned by that share holder or his predecessor in title to the corporation is of the total value of all property of the corporation acquired from all the shareholders of the corporation. "

(3) The value of the property transferred by such share holder or his predecessor in title shall be the fair value as at the date of the transfer of such property to the corporation, and the total value of the property of the corporation acquired from its shareholders shall, for the purpose of determining the percentage referred to in the last preceding subsection, be taken as at the date of acquisition thereof by the corpora tion; and in ascertaining values under this subsection, re gard shall be had to all the facts and circumstances, and the decision of the Minister in that respect shall be final and conclusive.

"( 4) Where one personal corporation is succeeded by, or transfers its property to, another corporation, the share holders of the first corporation shall be deemed to have trans ferred to the second or succeeding corporation the property which they transferred to the corporation first mentioned and where any person acquires the control of a personal corporation he shall be deemed to have transferred to such corporation the property transferred thereto by his vendor.

"( 5) Where the fiscal period of the personal corporation does not coincide with the calendar year, the income shall be deemed to be distributed as a dividend on the last day of the fiscal period. "

(6) Dividends actually declared by a personal corpora tion after the thirty-first day of December, one thousand nine hundred and thirty, shall be deemed to be paid out of income earned after said thirty-first day of December, one thousand nine hundred and thirty, so far as the same is available and to that extent shall not be liable to further taxation in the hands of the shareholders. "

(7) The shareholder of a personal corporation who con trols that corporation shall file with his income tax return a statement of the assets, liabilities and income of the per sonal corporation. "

(8) Any such shareholder who fails to file the statement required by the last preceding subsection at the time and in the manner prescribed shall be taxed on double the amount of his proportion of the income of the corporation. "

(9) A personal corporation shall be liable to taxation at the rate prescribed in the case of corporations only in respect of so much of its income as is distributed or deemed to be distributed in any year to shareholders who are not liable to taxation under this Act in that year." 7. The said Act is further amended as to

section 34 thereof by striking out subsection (2) thereof and by sub stituting therefor the following:

5 "

(2) Notwithstanding the provisions of

section 32 of this Act, any corporation or joint stock company whose fiscal year ends upon some day other than the thirty-first day of December, shall make a return within three months from the day upon which its fiscal year ends, and the tax shall be com puted in the manner prescribed by this Act, mutatis mutan dis, as if the fiscal year of the corporation or joint stock company had ended on the thirty-first day of December after the day upon which that fiscal year ends." 8. The said Act is further amended as to

section 47 thereof by striking out the words "the tax of three dollars and", where the same occur therein. 9. The said Act is further amended as to

section 48 thereof by striking out the words "together with the tax of three dollars", where the same occur therein. 10. The said Act is further amended by striking out the First

Schedule thereto and by substituting therefor the following: "FIRST

SCHEDULE "RATES OF TAX ApPLICABLE TO PERSONS OTHER THAN CORPORATIONS AND JOINT STOCK COMPANIES. "On the excess of income over the amount exempt from taxation up to $2,000-1 % ; .

"On the excess of income over the amount exempt, over $2,000 and up to $3,000-270; "On the excess of income over the amount exempt, over $3,000 and up to $4,000-3%; "On the excess of income over the amount exempt, over $4,000 and up to $5,000-4%; "On the excess of income over the amount exempt, over $5,000 and up to $6,000-6% ; "On the excess of income over the amount exempt, over $6,000 and up to $7,000-7%; "On the excess of income over the amount exempt, over $7,000 and up to $8,000-8% ; "On the excess of income over the amount exempt, over $8,000 and up to $9,000-9% ; "On the excess of income over the amount exempt, over $9,000 and up to $10,000-10% ; "On the excess of income over the amount exempt, over $10,000 and up to $11,000-12%; "On the excess of income over the amount exempt, over $11,000 and up to $12,000-13% ; "On the excess of income over the amount exempt, over $12,000 and up to $13,000-14%; "On the excess of income over the amount exempt, over $13,000 and up to $14,000-15%;

6 "On the excess of income over the amount exempt, over $14,000 and up to $15,000-16% ; "On the excess of income over the amount exempt, over $15,000 and up to $16,000-18%; "On the excess of income over the amount exempt, over $16,000 and up to $17,000-19%; "On the excess of income over the amount exempt, over $17,000 and up to $18,000-20%; "On the excess of income over the amount exempt, over $18,000 and up to $19,000-21 % ; "On the excess of income over the amount exempt, over $19,000 and up to $20,000-22% ; "On the excess of income over the amount exempt, over $20,000 and up to $21,000-24%; "On the excess of income over the amount exempt, over $21,000 and up to $22,000-25% ; "On the excess of income over the amount exempt, over $22,000 and up to $23,000-26% ; "On the excess of income over the amount exempt, over $23,000 and up to $24,000-27%; "On the excess of income over the amount exempt, over $24,000 and up to $25,000-28%; "On the excess of income over the amount exempt, over $25,000 and over-30% ; "RATE OF TAX ApPLICABLE TO CORPORATIONS AND JOINT STOCK COMPANIES.

"On the income of the Company-4%." 11. The provisions of

section 7 of this Act shall apply to returns relating to any income period terminating in the year 1936 or any year thereafter: the provisions of

section 10 of this Act shall apply to all taxes accruing due and pay able under the provisions of this Act in the year 1936 and any year thereafter; and the remaining provisions of this Act shall apply in respect of income for the year 1934 and for any subsequent year and for any income period terminat ing in any of those years, and also to all taxes payable in respect of any such income. 12. This Act shall come into force on the day upon which it is assented to.

No. 93. FIFTH SESSION SEVENTH LEGISLATURE 25 GEORGE V 1935 BILL

An Act to amend The Income Tax Act. Received and read the First time ................... . Second time ................. . Third time .................. . HON. MR. LOVE EDMONTON: w. D. McLEAN, KING'S PRINTER 1936 Title: 1935 (7th, 5th) Bill 93,

An Act to amend The Income Tax Act

Document details

Collection	Alberta — Bills
Citation	L7 S5 8581
Type	bill
Volume / chapter	L7 S5 8581
Language	en
Format	json
Source	PROVINCIAL
Identifier	535820ce39dfcd8edf6ab7afda98e234e491b135

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