No. 50 3rd Hession, 15th Legislature, Alberta 14 EliZaibeth II BILL 50 A Bill to amend The Alberta Income Tax Act HON. MR. A.ALBORG Printed by L. S. WALL, Printer to the Queen's Most Excellent Majesty, Edmonton, Alberta, 1966

Explanatory Note l. This Bill amends

chapter 1 of the Statutes of Alberta, 196,1 (2nd Sess.).

Section 4, subsection (6), clause (

b) presently reads:

(6) Where an individual resided in Alberta on th~ last da~ of a taxation year and had income for the year that mcluded mcome earned in a country other than Canada in respect of which any income or profits tax was paid to the government of such other country, he may deduct from the tax payable by him under this Act for that taxation year an amount equal to ,the lesser of (

b) that proportion of the deduction allowed to the taxpayer for that taxation year by virtue of

section 33 of the federal Act that (

i) the taxpayer's income earned in such other country for that year is of (ii) his income for the year. Under the provisions .of the provincial Income Tax Act a tax­ payer in receipt of foreign non-business income on which a tax has been paid to a foreign country is allowed a credit against his provincial income tax payable for the foreign tax paid. The amount .of the credit is not to exceed the lesser of (

a) the amount of the f.oreign tax paid that has not been ex­ hausted by the credit allowed under the J:ncome Tax Act (Canada) or (

b) that portion of the federal tax abatement which represents the same proportion to the total federal tax abatement that the taxpayer's foreign income bore to his total income. For purposes of determining the latter provision, the present provincial Income Tax Act expresses the federal tax abatement as that amount deductible by

section 33 from the federal basic tax by residents of a province. The tax reduction authorized in the 1965 Federal Budget was incorporated as

section 33 (4) of the Federal Act. In order to ensure that the amount of the provincial tax credit is not affected by this additional deduction allowed under

section 33, it is proposed to amend the Provincial Act to ensure that the ratio to determine the provincial tax credit for foreign income taxes shall be applied only to that federal deduction which relates to the tax abatement for the benefit of the province. 3. Applicability of amendment to

section 4 of the Act. 4. Commencement of Act.

BILL No. 50 of 1966

An Act to amend 'The Alberta Income Tax Act (Assented to ,1966) HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of Alberta, enacts as follows: 1. The Alberta Income Tax Act is hereby amended.

Section 4, subsection (6) is amended by striking out clause (

b) and by substituting the following: (

b) that proportion of the deduction allowed to the tax­ payer for that taxation year by virtue of subsection (1) of

section 33 of the federal Act that (

i) the taxpayer's income earned in such other country for that year is of (ii) his income for the year.

Section 2 is applicable to the 1965 and subsequent taxation years. 4. This A'ct comes into force on the day upon which it is assented to.

No. 50 THIRD SE'SSION FIFTEENTH LEGISLATURE 14 ELIZABETH II 1966 BILL

An Act to amend The Alberta Income Tax Act Received and read the First time. Second time ................................... . Third time. RON. MR. AALBORG Title: 1966 (15th, 3rd) Bill 50,

An Act to amend The Alberta Income Tax Act