Bill 62 (Legislature 12, Session 2)

L12 S2 6608

Alberta — Bills

Bill No. 62 of 1954 A BILL TO AMEND THE ALBERTA CORPORATION INCOME TAX ACT, 1949 NOTE This Bill amends The Alberta Corporation Income Tax Act, 1949, being

chapter 6 of the Statutes of Alberta, 1949. Se~tio~ 5 is amended by striking out clause (

I) and by substituting a new clause (I). This amendment repeals from the time of its introduction in 1949 the provision that a premium received on the acquisition of shares must be included in income. Subsection (1) of

section 10 is amended to provide for the circumstances where the employer is required by con tract to make the payment called for by the superannuation fund or plan on the date the employee becomes eligible to retire. A new

section 18a is added which deals with the taxation of interest on bonds or similar securities sold between in terest dates. It provides that the seller of a bond shall in clude in income the interest accrued up until the date of sale or transfer and it further provides that the purchaser in computing its income may deduct the proportion accruing before it purchased the bond from the total amount of interest it receives on the interest due date. A new subsection (3a) is added to

section 39 which pro vides that where a decision of the Provincia] Treasurer, or the courts, established that there has been an overpayment of tax, interest at the rate of 6% shall be paid to the corporation on the amount of the overpayment. The new subsection (5) added to

section 43 enables a charitable corporation to be exempt from income tax in its first year even though it did not distribute 90 % of its in come in the year. Subsection (1) of

section 58 is amended. This amend ment allows the immediate certification of an amount where in the opinion of the Provincial Treasurer a corporation is attempting to a void payment of taxes. This Bill comes into force upon assent. J. W. RYAN, Acting Legislative Counsel. (This note does not form any part of the Bill but is offered in explanation of its provisions.)

BILL No. 62 of 1954

An Act to amend The Alberta Corporation Income Tax Act, 1949 (Assented to , 1954) HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of Alberta, enacts as follows: 1. The Alberta Corporation Income Tax Act, 1949, being

chapter 6 of the Statutes of Alberta, 1949, is hereby amended. 2.

(1) Section 5 is amended by striking out clause (

f) Section 5 and by substituting the following: amended "(

f) amounts received by the corporation in the year as Premium on premiums paid by a corporation on the redemption ~~d:~~~~on before April 30, 1953 of any of its shares ;".

(2) This

section is applicable to the 1949 and subsequent taxation years. 3.

(1) Section 10, subsection (1) is amended by striking

Section 10 out clause (fa) and by substituting the following: amended " <fa) where an approved superannuation fund or plan con- Empl?yer's ta o • • d h· h th t· contrIbution InS a prOVISIon un er w IC e corpora IOn may to pension provide superannuation or pension benefits for an funds employee, officer or director of the corporation by making a lump sum payment to or under the fund or plan in the year in which the employee, officer or director becomes eligible to retire or retires from the employment or office, an amount paid by the corporation in the year or within sixty days from the end of the year pursuant thereto as the lump sum in respect of an employee, officer or director who so became eligible to retire or retired in the year (except to the extent that it is deductible under clause (f» ;".

(2) This

section is applicable to the 1952 taxation year. 4.

(1) The following new

section is added immediately New after

section 18:

section 18a "18a. Where, by virtue of an assignment or other trans- Interest ., fer of a bond, debenture or similar security (other than an on b_onds income bond' or an income debenture), the transferee has become entitled to interest in respect of a period commencing

Section 39 amended Interest on overpayment

Section 43 amended Election by new charit able trust or corpora tion

Section 68 amended Certificates 2 before the time of tl'ansfer and ending after that time that is not payable until after the time of transfer, an amount equal to that proportion of the interest that the number of days in the portion of the period that preceded the day of transfer is of the number of days in the whole period "(0) shall be included in computing the transferor's in come for the taxation year in which the transfer was made, and "(

b) may be deducted in computing the transferee's in come for a taxation year in the computation of which there has been included "(

i) the full amount of the interest under

section 5, or "(ii) a portion of the interest under, clause (

a) of this section.".

(2) This

section is applicable to the 1952 taxation year. 5.

(1) Section 39 is amended by adding immediately after subsecti<?n (3) the following new subsection: "(3a) Where, by a decision of the Provincial Treasurer under sectlOn 4U or by a decision of a judge of the Trial Division of the Supreme Court, it is finally determined that the tax payable by a corporation for a taxation year under this Act is less than the amount assessed by the assessment under

section 32 to which the objection was made or from which the appeal was taken and the decision makes it appear that there has been an overpayment for the taxa tion year, the interest payable under subsection (3) on that overpayment shall be computed at six per cent instead of at two per cent.".

(2) This

section is applicable to the 1952 taxation year. 6.

(1) Section 43 is amended by adding immediately after subsection (4) the following new subsection: "

(5) For the purpose of determining whether a corpora· tion has complied with the requirements of subclause (iii) of clause (cb) of subsection (1) for its first taxation year after its incorporation, the whole or any part of amounts expended by it in the immediately subsequent taxation year shall, if it so elects, be deemed to have been expended by it in.the first taxation year and not in the subsequent taxation year.". . (2) Subsection (1) is applicable to the 1952 taxation year. 7.

(1) Se:etion 58 is amended by striking out subsection (1) and by substituting the following: "58.

(1) An amount payable under this Act that has not been paid or such part of an amount payable under this Act as has not been paid may be certified by the Provincial Treasurer

3 "(

a) where there has been a direction by the Provincial Treasurer under subsection (2) of

section 35, forth with after such direction, and " (

b) otherwise, upon the expiration of thirty days after the default.".

(2) This

section is applicable from the coming into force of this Act to all amounts payable under The Alberta Corporation Inc01ne Tax Act, 1949. 8. This Act comes into force on the day upon which it is Coming into assented to. force

No. 62 SECOND SESSION TWELFTH LEGISLA'IURE 3 ELIZABETH II 1954 BILL

An Act to amend The Alberta Corporation Income Tax Act, 1949 Received and read the First time ........... . Second time....... ............................ . Third time .... HON. MR. MANNING Title: 1954 (12th, 2nd) Bill 62,

An Act to amend The Alberta Corporation Income Tax Act, 1949

Document details

Collection	Alberta — Bills
Citation	L12 S2 6608
Type	bill
Volume / chapter	L12 S2 6608
Language	en
Format	json
Source	PROVINCIAL
Identifier	81e794b978c5fcdeec76f0053fd0bcd9c3e0659e

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