Bill 58 (Legislature 18, Session 3)

L18 S3 5760

Alberta — Bills

1977 BILL 58 Third Session, 18th Legislature, 26 Elizabeth II THE LEGISLATIVE ASSEMBLY OF ALBERT A BILL 58 THE ALBERTA INCOME TAX AMENDMENT ACT, 1977 (NO.2) THE PROVINCIAL TREASURER First Reading ................. ',",' ......................... . Second Reading .......................................... . Third Reading ........................................... . Printed by the Queen's Printer for the Province of Alberta. EDMONTON

Bill 58 BILL 58 1977 THE ALBERTA INCOME TAX AMENDMENT ACT, 1977 (NO.2) (Assented to , 1977) HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Alberta, enacts as follows: 1 The Alberta Income Tax Act is amended by this Act. 2

Section 4.1 (b) (ii) (B) (II) is amended by striking out "the number of dependants claimed with respect to that taxation year" and by substituting "the number of children under 18 years of age resident in Canada and claimed by the taxpayer as dependants with respect to that taxation year". 3

Section 8.3(10) is amended by adding "within 4 years from the end of that taxation year" after "return". 1

Explanatory Notes 1 This Bill will amend

chapter 182 of the Revised Statutes of Alberta 1970. 2

Section 4.1 (

b) presently reads: 4.1. The tax payable by an individual under

section 4, subsection (

J) or (2) shall be reduced (

b) for the 1977 or any subsequent taxation year, by an amount equal to the lesser of (

j) the tax payable under

section 4, subsection (

J) or (2) for the taxation year, and (jj) the aggregate of (A) $116 minus one-half of the tax payable under

section 4, subsection (

J) or (2) for the taxation year, and (

B) the lesser of (I) $300, and (II) the product of $50 and the number of dependants claimed with respect to that taxation year. The amendment restricts the $50 credit to minor dependants to be consistent with the federal Act. 3 The amendment prescribes a 4 year limit on applications for Alberta Rental Assistant Credits.

Section 8.3 (10) presently reads: (J 0) No individual is entitled to a credit under this

section unless he applies for such credit in accordance with the prescribedform of return. 1

(1) Section 8.4 is amended (

a) by repealing subsection (1) (

a) and by substituting the following: (a) "attributed Canadian royalty income" of a taxpayer for a taxation year means the aggregate of (

i) the amounts required to be included in comput ing the taxpayer's income for the year by virtue of

section 120)(0) of the federal Act, where those amounts relate to the production from oil or gas wells or bituminous sands deposits, oil sands depos its or coal deposits or to any right, licence or privi lege to explore for, drill for or recover petroleum or natural gas or to explore for, mine, quarry, remove, treat or process bituminous sands or oil 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

section 18(1) (

m) of the fed eral Act, other than an amount described in

section 66.2(5) (

a) of the federal Act, where those amounts relate to the production from oil or gas wells or bituminous sands deposits, oil sands deposits or coal deposits or to any right, licence or privilege to explore for, drill for or recover petroleum or natur al gas or to explore for, mine, quarry, remove, treat or process bituminous sands or oil sands or to win or work mines, seams or beds of coal, (iii) any amounts by which the fair market value (as determined under

section 69(8) of the federal Act) of petroleum, natural gas or coal disposed of under dispositions referred to in

section 69(6) of the federal Act, exceeds the proceeds of disposi tion, 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

section 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

section 69 (9) of the federal Act)' of the petroleum, natural gas or coal so acquired, less the amount allowed to the taxpayer for the year under

section 20 (1 ) (v.1) of the federal Act in respect of oil or gas wells or bituminous sands deposits, oil sands deposits or coal deposits; 2

Section 8.4 presently reads in part:

(2) An individual is entitled, suqject 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 (0 the proportion Qf his attributed Canadian royalty income for the year that (

A) his income earned in Alberta in the year as determined in accordance with

Part XXVI of the federal regulations is of (

B) his income for the year, is multipled by (ii) for the 1974 taxation year, 36 per cent of his federal basic tax rate for that year, or (iii) for the 1975 and subsequent taxation years, 26 per cent of his federal basic tax rate for the year,

(6) Where there is tax otherwise payable under this Act by a taxpayer for a taxation year, the taxpayer is entitled to carry forward and use in the calculation of his royalty tax rebate for the next succeeding year, as though it were attributed Canadian royalty income in the next succeeding year, (

a) in the case of an individual, the quotient obtained when (0 the amount, if any, by which the product determined for him for the year under subsection (2), clause (

a) exceeds his tax otherwise payable under this Act for the year, is divided by (iiJ in the case of the 1974 taxation year, the product of or (A) 36 per cent 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 of the 1975 and subsequent taxation years, the product of (A) 26 per cent 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; 2

(

b) by repealing subsection (2) (a) (iii) and substituting thefollow ing: (iii) for the 1975 and 1976 taxation years, 26% of his federal basic tax rate for the year, or (i

v) for the 1977 and su bsequen t taxati on years, 38.5% of his federal basic tax rate for the year, (

c) by repealing subsection (6) (a) (iii) and substituting the following: (iii) in the case of the 1975 and 1976 taxation years, the product of or (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 XXVI of the federal regula tions) is divided by his income for that taxation year, (iv) in the case of the 1977 and subsequent taxation years, 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 regula tions) is divided by his income for that taxation year; (

d) in subsection (7.1)(

b) by striking out "or related hydrocar bons (except coal)" and by substituting "or coal", (

e) in subsection (7.2) (

b) by striking out "or related hydrocar bons (except coal)" and by substituting "or coal", (

j) in subsection (8) by striking out "at the time and in the manner prescribed by the Provincial Treasurer" and substitut ing "in the prescribed form and within the prescribed period" .

(2) Subject to subsection (3) of this section, subsection 0) (a), (

d) and (

e) are applicable to the 1974 and subsequent taxation years.

(3) Section 8.40)(

a) of The Alberta Income Tax Act (as re enacted by subsection O)(

a) of this section) and

section 8.4(7.1) and (7.2) of that Act (as amended by subsection O)(

d) and (

e) of this section) 3

(8) A taxpayer is entitled to a royalty tax rebate in respect of a taxation year only if application is made therefor by the taxpayer to the Provincial Treasurer at the time and in the manner prescribed by the Provincial Treasurer. The new definition of "attributed Canadian royalty income" and the consequential changes to subsections (7.1) and (7.2) have the effect of extending the royalty rebate program to coal. The amendments to subsections (2) (

a) and (6) (

a) will make the rate applied to the rebate consistent with the change in the personal income tax rate enacted in the Spring sitting of 1977. The amendment to subsection (8) will allow the definition of "pre scribed" in

section 2 of the Act to apply, so that the form of the application will be prescribed by the Provincial Treasurer and the time period for filing will be prescribed by regulations of the Lieutenant Governor in Council. The definition of "prescribed" reads: 23. "prescribed", in the case of a form or the information to be given on a form, means prescribed by order of the Provincial Treasurer, and, in any other case, means prescribed by regulation;

Section 8.5(13) of the Act is being amended in a similar manner: see

section 5 of this Bill. 3

(

a) shall, to the extent that they relate to the production from coal deposits, be read as referring to coal produced on or after July 1, 1976, and (

b) shall, to the extent that they relate to any rights, licences or privileges to win or work mines, seams or beds 0/ coal, be read as referring to rights, licences and privileges acquired on or after July 1, 1976. 5

Section 8.5 is amended (

a) in subsection (10) by striking out "(9)" and by substituting "(10.1)", (

b) in subsection (13) by striking out "in the manner and at the time prescribed by the Provincial Treasurer" and by substituting "in the prescribed form and within the prescribed period" . 6

Section 8.6 is amended by adding the following after subsection (3):

(4) A taxpayer is not entitled to a deduction under subsection (1) in respect of a taxation year unless application is made in accordance with the prescribed form of return within 4 years from the end of that taxation year. 7

Section 18 is amended (

a) in subsection (4) by striking out "a taxpayer" and by substituting "an individual", (

b) by adding the/ollowing after subsection (4):

(4.1) For the purposes of subsection (2), where a cor poration is required to pay a part or instalment of tax for a taxation year computed by reference to a method described in

section 15 (1) , the corporation shall be deemed to have been liable to pay a part or instalment computed by reference to (

a) its tax payable for the year, (

b) its instalment base for the immediately preced ing taxation year, or (

c) its instalment base for the second taxation year preceding the year and its instalment base for the immediately preceding taxation year. 4

Section 8.5(13) presently reads:

(13) A taxpay~r is not entitled to a royalty tax credit in respect of a taxation year unless applIcatIOn IS made therefor by the taxpayer to the Provincial Treasurer in the manner and at the time prescribed by the Provincial Treasurer. The amendment to subsection (10) corrects a drafting omission in the amending Act passed in May 1977. As to the reasons for the amendment to subsection (13) see the explanatory note to

section 4 of this Bill relating to the amendment to

section 8.4(8) of the Act. 6 The amendment prescribes a 4 year limit on applications for Alberta political contribution deductions. 7 Subsections (2) and (4) presently read:

(2) In addition to the interest payable under subsection (1), where a taxpayer, being required by this Act to pay a part or instalment of fax, has failed to pay all or any part thereof as required, he shall, on payment of the amount he failed to pay, pay interest at the rate per annum prescribed for the purposes of

section 161, subsection (1) of the federal Act from the day on or before which he was required to make the payment to the day of payment or the beginning of the period in respect of which he is liable to pay interest thereon under subsection (1), whichever is earlier.

(4) For the purposes of subsection (2), where a taxpayer is required to pay a part or instalment of tax for a taxation year as estimated by him with reference to a preceding year or with reference to the taxation year, he shall be deemed to have been liable fa pay a part or instalment computed by reference to his taxfor (

a) the preceding 'year, or (

b) the taxation year, whichever is the lesser. The amendments are needed to make the provisions of the Alberta Act regarding required instalment payments consistent with the federal Act provisions, as required by the Tax Collection Agreement. 4

8 This Act comes int%rce on the day upon which it is assented to. 5

5 Title: 1977 (18th, 3rd) Bill 58, The Alberta Income Tax Amendment Act, 1977 (No. 2)

Document details

Collection	Alberta — Bills
Citation	L18 S3 5760
Type	bill
Volume / chapter	L18 S3 5760
Language	en
Format	json
Source	PROVINCIAL
Identifier	873a266c757eb552aa9bbe88c5afc6d3bfb9f4dd

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