Bill 51 (Legislature 18, Session 4)

L18 S4 4359

Alberta — Bills

1978 BILL 51 Fourth Session, 18th Legislature, 27 Elizabeth II THE LEGISLATIVE ASSEMBLY OF ALBERTA BILL 51 THE ALBERTA INCOME TAX AMENDMENT ACT, 1978 THE PROVINCIAL TREASURER First Reading ._ ........................................... . Second Reading .......................................... . Committee of the Whole .................................. . Third Reading ........................................... . Royal Assent ............................................ . Printed by the Queen's Printer for the Province of Alberta, EDMONTON

Bill 51 BILL 51 1978 THE ALBERTA INCOME TAX AMENDMENT ACT, 1978 (Assented to , 1978) 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 2(

J) is amended by repealing clause 24 and substituting the folio wing: 24 "province" does not include 0) in respect of the 1977 and earlier taxation years, the Northwest Territories or the Yukon Territory, and (ii) in respect of the 1978 and subsequent taxation years, the Yukon Territory~ 3

Section 4(7) is repealed and thefollowing is substituted:

(7) For the purposes of subsection (6) and

section 5 (3) (b), the non-business-income tax paid by a taxpayer to the government of a country other than Canada in respect of his income for a year is the non-business-income tax paid by him to the government of that country as computed under

section 126(7) (

c) of the federal Act for the purposes of that Act. 4

Section 4.1 is repealed and the jD 110 wing is substituted: 4.1

(1) In this section, "tax otherwise payable" means the tax payable under

section 4(1) or (2) less any royalty tax rebate claimed by an individual under

section 8.4 for the taxation year.

(2) The tax payable by an individual under

section 4(1) or (2) shall be reduced 1

Explanatory Notes 1 This Bill will amend

chapter 182 of the Revised Statutes of Alberta 1970. 2

Section 2 (I), clause 24 presently reads: 24 "province" does not include the Northwest Territories or the Yukon Territo/y. 3

Section 4(7) presently reads:

(7) For the purposes of subsection (6), the non-business-income tax paid by an individual to the government of a count/yother than Canada in respect of his income for a year is the non-business-income tax paid by him to the government of that count/y in respect of that year as computed under

section 126, subsection (7), paragraph (

c) of the federal Actfor the purposes of that Act. 4

Section 4.1 presently reads: 4.1 The tax payable by an individual under

section 4, subsection (1) or (2) shall be reduced (

a) for the 1975 and 1976 taxation years, by an amount equal to the lesser of (

i) the tax payable under

section 4, subsection (1) or (2) for the taxation year, and 1

(

a) for the 1975 and 1976 taxation years, by an amount equal to the lesser of (

j) the tax payable under

section 4 (1) or (2) for the taxation year, and (ij) $80 minus 2% of the individual's taxable in come for that year, (

b) for the 1977 taxation year, by an amount equal to the lesser of (D the tax payable under

section 4(1) or (2) for the taxation year, and (ij) the amount, if any, by which the aggregate of (A) $116, and (

B) the lesser of (I) $300, and (II) the product of $50 and 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 exceeds 112 of the tax payable under

section 4(1) or (2) for the taxation year, (

c) for the 1978 taxation year, by an amount equal to the lesser of (

j) the tax otherwise payable for the taxation year, and (ij) the amount, if any, by which the aggregate of (A) $231, and (

B) the lesser of (I) $300, and (II) the product of $50 and 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 exceeds the tax otherwise payable for the taxation year, and 2

OJ) $80 minus 2 pel' cent qf the individual's taxable income for that year; (b) ./01' the 1977 alld 1979 taxation years and each taxation year subsequent to the 1979 taxation year, by an amount equal to the lesser qf OJ the tax payable under

section 4. subsection (

I) or (2) for the taxation year, and OJ) the aggregate qf (A) $116 minus one-haff qf the tax payable under

section 4, subsection (

J) or (2) ./01' the taxation year, and (

B) the lesser qf (j) $JOO, and (j

j) the product qf $50 and the number qf children under 18 years qf age resident in Canada and claimed by the taxpayer as dependants with respect to that taxation year; (

c) for the 1978 taxation year, by an amount equal to the lesser qf 0) the tax payable under

section 4 (

J) or (2) for the taxation year, and OJ) the aggregate qf (A) $2JI minus the tax payable under

section 4(1) or (2) ./01' the taxation year, and (

B) the lesser of (j) $JOO. and (jj) the product qf $50 and the number of children under 18 years qf age resident in Canada and claimed by the taxpayer as dependants with respect to that taxation year. 2

(

d) for the 1979 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 the aggregate of (A) $116, and (

B) the lesser of (I) $300, and (II) the product of $50 and 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 exceeds 112 of the tax otherwise payable for the taxation year 0 5

(1) Section 804 is amended (

a) in subsection 0) (

a) by striking out "less the amount allowed to the taxpayer for the year under

section 200)(voI) of the federal Act in respect of oil or gas wells or bituminous sands deposits, oil sands deposits or coal deposits" and substituting: "less the aggregate of (

v) the amount allowed to the taxpayer for the year under

section 200)(voI) of the federal Act in respect of oil or gas wells or bituminous sands deposits, oil sands deposits or coal deposits, and (vi) the amount of any reimbursement received by the taxpayer under the terms of a contract, where 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

section 120) (0) or

section 180) (

m) of the federal Act" , (

b) in subsection 0) by adding the folloWing afier clause (b): (boI) "resource income" means income reasonably attributable to production from oil and 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 natural gas or to 3

Section 8.4 presently reads in part: 8.4 (

j) In this section, (a) "attributed Canadian royalty income" of a taxpayer for a taxation year means the aggregate of (0 the amounts required to be included in computing the taxpayer's income for the year by virtue of

section 12(1)(0) q/ the federal Act, where those amounts relate to the production Fom 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 natural gas or to explore for, mine, quany, remove, treat or process bituminous sands or oil sands or to win or work mines, seams or beds of coal, 00 the amounts in respect of which no deduction is allowed in comput ing the taxpayer's income jar the year by virtue of

section 18(1)(

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

section 66.2(5)(

a) q/ the federal Act, where those amounts relate to the production Fom oil or gas wells or bituminous sands deposits, oil sands deposits or coal deposits or to any right, licence or privilege to explore jar, drill jar or recover petroleilm or natural gas or to explore jar, mine, quany, remove, treat or process bituminous sands or oil sands or to win or work mines, seams or beds of coal, OiO any amounts by which the fair market value (as determined under

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

section 69(6) of the jederal Act, exceeds the proceeds of disposition, if any, actually received by him in respect of the petroleum, natural gas or coal so disposed oj; and Ov) any amounts by which the amount rejerred to in

section 69(7) of the jederal Act in respect of acquisitions q/ petroleum, natural gas or 3

explore for, mine, quarry, remove, treat or process bituminous sands or oil sands or to win or work mines, seams or beds of coal ~ (

c) in subsection (J)(

d) by striking out "means" and substitut ing "means, with respect to the 1977 and earlier taxation years," , (

d) in subsection (

J) by adding thejol/owing ajier clause (d): (d.1) "tax otherwise payable under this Act", or any similar expression, means, with respect to the 1978 and subsequent taxation years, the tax payable under sec tion 4(1) or (2) for that taxation year, (

e) by repealing subsection (2) (

a) Ov) and substituting the jolla wing: (iv) for the 1977 taxation year, 38.5% of his federal basic tax rate for the year; (

j) by adding thejol/owing ajier subsection (2):

(2.1) For the 1978 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 (

i) the proportion of his attributed Canadian royalty income for the year that is of (

A) his resource income earned in Alber ta for the year as determined in accord ance with

Part XXVI of the federal regulations (

B) his total resource income for the year is multiplied by 38.5% of his federal basic tax for the year, and (

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

g) in subsection (6)(a) 0) in subclause 0) by striking out "subsection (2), clause (a)" and substituting "subsection (2) (

a) or sub section (2.1) (a)" , 4

coal re.terred to in that subsection exceeds the .lair 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.liJr the year under

section 20(J)(v.

J) ql the federal Act in respect qloil or gas wells or bituminous sands deposits, oil sands deposits or coal deposits; (

d) the expression "tax otherwise payable under this Act", or any similar expression, means the tax payable under this Act without re.lerence to this

section and

section 8.5;

(2) An individual is entitled, subject to this

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

a) the product obtained when (0 the proportion ql his attributed Canadian royalty income .IiJr the year that is ql (

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

Part XXVI qlthe.lederal regulations (

B) his income fiJr the year, is multiplied by (ii) .IiJr the 1974 taxation year, 36 per cent qf his jederal basic tax rate .IiJr that year, or (iii) fiJr the 1975 and 1976 taxation years, 26'#, of his federal basic tax rate.liJr the year, or (iv) fiJr the 1977 and subsequent taxation years, 38.5% of his .Iederal basic tax rate fiJr the year,

(6) Where there is tax otherwise payable under this Act by a taxpayer fiJr a taxation year, the taxpayer is entitled to carty fiJrward and use in the calculation qf his royalty tax rebate .IiJr the next succeeding year, as though it were attributed Canadian royalty income in the next succeeding year, (

a) in the case qfan individual, the quotient obtained when (

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

a) exceeds his tax otherwise payable under this ActfiJr the year, is divided by (ii) in the case of the 1974 taxation year, the product of (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 qf the federal regulations) is divided by his income jiJr that taxation year, 4

00 in subclause Ov) by striking out "and subsequent taxation years" and substituting "taxation year", and OiO by adding "or" at the end qf subclause Ov) and by adding the following a./ter subclause Ov): (

v) in the case of the 1978 and subsequent taxa tion 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;

(2) Section 5(J)(

a) applies to the 1978 and subsequent taxation years. 6

Section 8.5 (

J) is amended (

a) in clause (

b) by striking out "a taxation year" and substi tuting "the 1977 and earlier taxation years", and (

b) by adding the following after clause (b): (b. I) "attributed Alberta royalty income" of a taxpay er for the 1978 and subsequent taxation years means the aggregate of all amounts each of which is (

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

section 12(1)(0) of the federal Act, or (ii) an amount 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 federal Act, less all amounts each of which is (iii) a reimbursement received by the taxpayer under the terms of a contract, where the reimbur sement was for an amount paid or payable by the taxpayer that is required to be included in comput ing his income or denied as a deduction in comput ing his income by virtue of

section 12(1)(0) or

section 18 (1) (

m) of the federal Act, and each of which is a royalty receivable by the Crown in right of Alberta under a lease, licence, reservation or permit granting petroleum rights, natural gas rights or petroleum and natural gas rights; 5

or (iii) in the case of the 1975 and 1976 taxation years, the product q/ (A) 26'Y/) q/ his basic .tederal tax rate, and or (

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

Part XXVI 0/ the .lederal regulatiom) is divided by his income.lor that taxation y~ar, (iv) in the case q/ the 1977 and subsequent taxation years, the product qj' (A) 38.5% q/his basicfederal tax rate, and (

B) the quotiel1f obtained when his income earned in Alberta in the taxation year (as determined in accordance with

Part XXVI qj'the .lederal regulations) is divided by his income.lor that taxation year; 6

Section 8.5 (1) presently reads in part: 8.50) In this

section (b) "attributed Alberta royalty income" of a taxpayer .lor a taxation year means the aggregate q/ all amounts each q/ which is OJ an amoul1f required to be included in computing the taxpayer's income jar the year by virtue q/

section 12, subsection 0), paragraph (0) q/ the federal Act, or (iiJ an amount in respect of which no deduction is allowed in computing the taxpayer's income .lor the year by virtue q/

section 18, subsection 0), paragraph (

m) q/the.tederal Act, and each q/ which is a royalty receivable by the Crown in right q/ Alberta under a lease, licence, reservation or permit granting petroleum rights, natural gas rights or petroleum and natural gas rights; 5

Section 8.6(4) is amended by striking out "subsection (1)" and substituting "subsection (2)". 8

Section f20) is amended by adding the ./ollowing a./ter clause (h): (h. 1 ) a payment out of or under a registered retirement income fund, or 9

Section 200) is repealed and the./ollowing is substituted: 20(1) Every person who, knowingly, or under circum stances amounting to gross negligence in the carrying out of any duty or obligation imposed by or under this Act, has made or has participated in, assented to or acquiesced in the making of, a statement or omission (in this subsection referred to as a "false statement") in a return, certificate, statement or answer (in this

section referred to as a "return") filed or made in respect of a taxation year as required by or under this Act or the regulations, is liable to a penalty of 25% of the amount, if any, by which (

a) the tax for the year that would be payable by him under this Act if his taxable income for the year were computed by adding to the taxable income reported by him in his return for the year that portion of his understatement of income for the year that is reason ably attributable to the false statement exceeds (

b) the tax for the year that would have been payable by him under this Act had his tax payable for the year been assessed on the basis of information provided in his return for the year.

(1.1) For the purpose of subsection (1), the taxable income reported by a person in his return for a taxation year shall be deemed not to be less than nil and the "understatement of income for a year" of a person has the meaning assigned to that expression in

section 163 (2.1) of the federal Act. 10

Section 50(4) is amended by striking out "that he has charge of the appropriate records,". 6

7 Corrects an incorrect reference. 8 The new clause (h.

I) permits the tax on a payment out of or under a registered retirement income fund to be deducted at source. 9

Section 20(1) presently reads: 20(1) EvelY person who, knowingly, or under circumstances amounting to gross negligence in the ca,.,ying out of any duty or obligation imposed by or under this Act, makes, or participates in, assents to or acquiesces in the making 0'/; a statement or omission in a return, certificate, staternent or answer .filed or made as required by or under this Act or a regulation, as a result of which the tax that would have been payable by him for a taxation year if the tax had been assessed on the basis of the info/,/nation provided in the return, certificate, statement or answer is less than the tax payable by him ./01' the year, is liable to a penalty of twenty~five pel' cent of the amount by which the tax that would have been so payable is less than the tax payable by himfor the year. 10

Section 50(4) presently reads:

(4) Where, by this Act or a regulation, provision is made ./01' sending by mail a request for in./ormation, notice or demand, an a./fidavit of an officer of the Department of the Provincial Treasurer sworn before a commissioner or other person authorized to take affidavits setting out that he has charge of the appropri ate records, that he has knowledge of the facts in the particular case, that such a request, notice or demand was sent by registered letter on a named day to the person to whom it was addressed, indicating such address, and that he identifies as exhibits attached to the affidavit the post o.ffice certificate o.f registration 0./ the letter or a true copy o.f the relevant portion thereof and a true copy 0/ the request, notice or demand, is admissible in evidence as prima facie proof 0./ the sending and o.ftlJe request, notice or demand. 6

J J This Act comes into force on the day upon which it is assented to. 7 Title: 1978 (18th, 4th) Bill 51, The Alberta Income Tax Amendment Act, 1978

Document details

Collection	Alberta — Bills
Citation	L18 S4 4359
Type	bill
Volume / chapter	L18 S4 4359
Language	en
Format	json
Source	PROVINCIAL
Identifier	a3e794e194bcfadb6f8a83677845c3fcf0661381

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