Bill 47 — First Session, 17Th Legislature, 21 Elizabeth Ii the Legislative Assembly of Alberta Bill 47 the Alberta Income Tax Amendment Act, 1972 the Provincial Treasurer (Legislature 17, Session 1)

L17 S1 5028

Alberta — Bills

1972 Bill 47 First Session, 17th Legislature, 21 Elizabeth II THE LEGISLATIVE ASSEMBLY OF ALBERTA BILL 47 The Alberta Income Tax Amendment Act, 1972 THE PROVINCIAL TREASURER First Reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Second Reading .... Third Reading ......... , ................... , . Printed by L. S. Wall, Queen's Printer, Edmonton

BILL 47 1972 THE ALBERTA IN'CO'ME TAX A.MENDMENT ACT, 1972 ( Assented to ,1972) HER MAJESTY, by a.nd with tihe a.dvice and consent of the Legis:I'atiV!€ Assemhly of Alherta, en:a:cts as foUows: 1. The Alberta Income Tax Act is hereby amended.

Section 2, subsection (1) is amended by striking out clauses 18 and 20.

Section 3 is amended (

a) as to subse.ction (1) by striking out the words "other than an individual to whom subsection (2) applies,", and (

b) by striking out subsection (2).

Section 4 is amended (

a) by striking out subsection (3) and by substituting therefor the following subsection:

(3) For the purposes of this section, the p'er centage of the tax payable under the federal Act to be used for computing the tax payable under this

section is (a) 33 per cent in respect of the 1970 and the 1971 taxation years; (b) 36 per cent in respect of the 1972 and subse quent taxation years. (

b) as to subsection (4) by striking out clauses (c), (

d) and (

e) and by sUbstituting there for the fol lowing clauses: (c) "income for the year" means (

i) in the case of an individual resident in Cana?a during part only of the taxation year In respect of whom

section 114 of the federal Act applies, the aggregate of

Explanatory Notes 1. This Bill will amend

chapter 182 of the Revised Statutes of Alberta 1970. This Bill will bring The Alberta Income Tax Act into conformity with the federal income tax legislation.

Section 2, subsection (1), clauses 18 and 20 read: 2.

(1) In this Act, 18. "member of the Canadian Forces" means a member as defined for the purpo'ses of

Part XXIII of the federal regulations; 20. "Old Age Security Act" means the Old Age Security Act, being

chapter 200 of the Revised Statutes of Canada, 1952, as amended from time to time;

Section 3, subsections (1) and (2) read: 3. <,1) An income tax shall be paid as hereinafter required for each taxatl{)n year by every individual, 'other than an individual to whom subsection (2) applies, (

a) who was resident in Alberta on the last day of the taxation year, or (

b) who, not being resident in J\,lberta on 'the last day of the taxation year, had income earned in the taxation year in Alberta as defined in se-ction 4, subsection (4), clause (a).

(2) An income tax shall be paid as hereinafter required fior each taxation year by every individual who, during the taxation year, was a member of the Canadian Forces to whom

section 6 applies.

Section 4, subsecti'Ons (3), (4) and (6) read:

(3) For the purposes of this

section the percentage of .the tax payable under the federal Act to be used for computing the tax payable under this

section is 33 per cent in respect of the 1970 and subsequent taxation years.

(4) In this section, (a) "income earned in the taxation year in Alberta" means the in come earned in the taxation year in Alberta as determined in acooroance with regulations made under

section 33, subsection (3), paragraph (

a) of the federal Act; (b) ."income earned in the taxation year outside Alberta" means income for the year minus inClome earned in the taxation year in Alberta; (c) "income for the year" means (

i) in the case of an individual resident in Canada during part only of the taxation year in respect of whom

section 29 of the federal Act applies, his income for the period or periods in the year referred to in paragraph (

a) of that

section as determined in accordance with and for the purposes of the federal Act,

2 (

A) his income for the period or periods in the year referred to in

section 114, paragraph (

a) of the federal Act as determined in accordance with and for the purposes of the federal Act, and (

B) his income for the portion of that year that is not included in the period or periods referred to in paragraph (A), computed under

section 115, sub section (1), paragraphs (a), (

b) and (

c) of the federal Act as though such portion of the year were the whole taxation year, (ii) in the case of an individual not resident in Canada at any tim'e in the taxation year, his income for the year as computed under

section 115, subsection (1), para graphs (a), (

b) and (

c) of the federal Act, and (iii) in the case of any other individual, his income for the year as determined in ac cordance with and for the purposes of the federal Act; (d) "tax payable under the federal Act" means the amount that, but for

section 120 of the federal Act, would be the tax payable by a taxpayer under

Part I of that Act for the taxation year in respect of whkh the expres sion is being applied computed as if the tax payer were not entitled to any deduction under

section 126 or 127 of that Act; and (

c) by striking out subsection (6) and by substituting therefor the following subsections:

(6) Where an individual resided in Alberta on the last day of a taxation year and had income for the year that included income earned in a country other than Canada in respect of which any non business-income tax was paid by him to the govern ment of a country other than Canada, he may de duct from the tax payable by him under this Act for that taxation year an amount equal to the lesser of (

a) the amount, if any, by which any non-business income tax paid by him for the year to the government of such other country exceeds the amount claimed under the federal Act as a deduction for that taxation year by virtue of

section 126, subsection (1) of that Act, or

2 (ii) in the case of an individual not resident in Canada at any time during the taxation year, his income for the year from all duties performed by him in Canada and all businesses carried on by him in Canada as determined in accordance with and for the purpo·ses of the federal Act, and (iii) in 'the case of any other individual, his income f'orthe year as determined in a·ccordance with and for the purposes of the federal Act; (d) "individual" does not include an individual who was a member of the Canadian ]'orces during a taxation year and to whom

section 6 app,lies; (e) "tax payable under the federal Act" means the amount of tax payable under

Part I of the federal Act 110r the taxation year in respect of which that expression is being applied, minus any amount included in computing that amount by virtue of

section 10, subsection (3) of the Old Age Security Act, plus any amount deducted in computing ,that amount by virtue of sections 33 and 41 of the federal Act.

(6) Where an individual resided in Alberta on the last day of a taxation year and had in00me for the year that inoluded income earned in a country other than Canada in respect of which any inoome 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 le·sser of (

a) the amount, j,f any, by which the tax paid to the government of such other country in respect of his income for the year exceeds the amount allowed under the federal Act as a deduction for that taxation year by virtue of

section 41 of tha't Act, or (

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

section 33, subsection (1) of the federal Act that (

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

(

b) that proportion of the tax 'Otherwise payable under this Act for that taxation year that (

i) the aggregate of the taxpayer's income from sources in that country (

A) for that year, if

section 114 of the federal Act is not applkable, or (

B) if

section 114 of the federal Act is applkable, for the period or periods in the year referred to in paragraph (

a) thereof, on the aSlSumption that no businesses were carried on by him is of (ii) the taxpayer's income (

A) for the year, if

section 114 of the federal Act is not applicable, or (

B) if

section 114 .of the federal Act is applicable, for the period or periods in the year referred to in paragraph (

a) thereof, minus any amounts deductible under sec tion 111, subsection (1), paragraph (

b) or

section 112 or 113 of the federal Act for the year or such period or periods, as the case may be.

(7) For the purposes of subsection (6), the non business-income tax paid by an individual 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 in respect of that year as computed under

section 126, subsection (7), paragraph (

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

Section 5 is arnencled by striking out subsection (3) ({ nd by substituting therefor the fdllowing subsection:

(3) Where the income for a taxation year of a corpora tion that maintained a permanent establishment in Alberta at any time in the taxation year includes inc'Ome described in

section 12, subsection (1), paragraph (b), subparagraph (

i) of the federal Act from s.ources in a country other than Canada (in this

section referred to as "foreign investment income") and where the corporation has claimed a deduc tion under

section 126, subsection ~ 1) of the federal Act i~ respect of the foreign investment income, the corpora tIon may deduct frorn the tax for the year 'Otherwise pay able under this Act an amount equal to the lesser of 3

5. Corporate foreign investment income.

Section 5, subsection (3) reads:

(3) Where there has been included in computing the income for a taxation year of a oorporation that maintained a permanent establish ment in Alberta at any time in the taxation year amounts received by the corporation in the year as dividends, interest, rents or royalties that were derived from sources in a -country other than Canada (in this

section referred to as "foreign investment income") and where the cor poration is entitled to a deduction under

section 41 of the federal Act in respect lof the foreign investment income, the corporation may deduct from the tax for the year otherwise payable under this Act an amount equal to the lesser of, (

a) eleven per -cent of the product of (

i) the foreign investment income of the oorporation for ,the year minus amounts that are deductable under

section 28, subsection (1), paragraph (

d) of the federal Act that were included in its foreign investment income for that year, and (ii) that proportion of the taxable income earned in the year by the corporation that is determined to have been earned in the year in Alberta in accordance with regulations made under

section 10, subsection (2) of the federal Act, or (

b) that pI"1oportion of the amount of the deduction from the tax for the year otherwise payable by the oorporation under

Part I of the federal Act that would be permitted under

section 41, sub section (1) or (la) of that Act if subsection (la), paragraph (b), subparagraph (ii) and subsection (5) of that

section did not contain a reference to sectiton 40 of that Act minus the amount of such deduction permi<tted by either subsection (1) or (la) of

section 41 of that Act that (

i) the taxable income earned in the year in Alberta by the corporation as detennined in accordance with regulations made under

section 40, subsection (2) of the federal Act is of (ii) the aggregate of the taxable income earned in the year in each province by the corporation as determined in accordance with regulations made under

section 40, subsection (2) of the federal Act. 3

(a) 10 per cent of the product of (

i) the foreign investment income of the corpora tion for the year from sources in the country, and (ii) that proportion of the taxable income earned in the year by ,the corporation that is deter mined to have been earned in the year in Al berta in accordance with regulations made under

section 124, subse,ction (4), paragraph (

a) of the federal Act, or (

b) that proportion of the amount of the deduction from the tax for the year otherwise payable by the corporation under

Part I of the federal Act that would be permitted under

section 126, sub~ section (1) of that Act if the reference to

section 124, subsection (2) set out in

section 126, sub section (7), paragraph (d), subparagraph (

i) of that Act were read as

section 124 of that Act minus the amount of the deduction claimed by the corporation under

section 126, subsection (1) of the said Act, that (

i) the taxable income earned in the year in Al berta by the corporation as determined in ac ,cordance with regulations made under

section 124, subsection (4), paragraph (

a) of the federal Act is of (ii) the aggregate of the taxable income earned in the year in each province by the corporation as determined in accordance with regulations made under

section 124, subsection (4), para graph (

a) of the federal Aet.

Section 6 is struck out.

Section 9 is amended by striking out subsection (4) and by substituting therefor the following subsection:

(4) Where a partner or an individual who is a proprietor of a business died after the close of a fiscal period but be fore the end of the calendar year in which the fiscal period closed, a separate return of the taxpayer's income as a member of the partnership or as a proprietor of the busi ness, after the close of the fis-cal period to the time of death may be filed and, if such a separate return is filed, the tax under this Part shall be paid on the taxpayer's income as such member or proprietor after the close of the fiscal period to the time of death as if that income were the income of another person. 4

6. 'The

section dealing with members of the Canadian Forces is struck out. 4

Section 9, subsection (4) reads:

(4) Where a partner or an individual who is a proprietor of a business died after the close of a fiscal peri10d but before the end M the calendar year in which the fiscal period closed, a ·separate return for the period after the close of the fiscal period to the time of death may be med and, if such a separate return is filed, the tax payable with respe,ct to the period after the close of the fiscal period to the time of death shall be paid as if that tax were tax payable by another person.

Section 11 is amended ( a,) by striking out subsection (4-) and by substituting therefor the following subsections:

(4) The Provincial Treasurer may at any time assess tax, interest or penalties under this Act or notify in writing any person by whom a return for a taxation year has been filed that no tax is payable for a taxation year and may (

a) at any time, if the ta}Gpayer or som'e person filing the return (

i) has made any misTepresentation that is attributable to neglect, carelessness or wilful default or has committed any fraud in filing the return or in supplying any information under this Act, or (ii) has filed wi,th the Provincial Treasurer a waiver in the prescribed form within four years from the day of mailing of a notice of an original assessment or of a notifica tion that no tax is payable for a taxation year, and (

b) within four years from the day referred to in clause (a), suhclause (ii) in any other case, reassess or make additional assessments or assess tax, interest or penalties as the cir'C'umstances require.

(4.1) Notwithstanding subsection (4), there shall not be included in ·computing the income of a tax payer, for the purposes of any reassessment, ad ditional assessment or as:sessment of tax, interest or penalties that is made after the expiration of four years from the day referred to in subsection (4), ,clause (a), subclause (ii), any amount that was not included incOOllputing hilS income for the purposes of an assess.ment of tax made before the expiration of four years from that day and (

a) in respect of which the ta)CJ)ayer establishes that the failure so to include it did not result from any mi,srepresentation that is attributable to neglect, carelessness or wilful default or from any fraud in filing a return of his income or in supplying any information under this Act, or (

b) that the taxpayer establishes cannot reason ably be regarded as relating to a matter speci fied in a waiver filed by the taxpayer with the Provincial Treasurer, in the form and with- 5

8. Assessments.

Section 11, ,subsections (4) and (6) read:

(4) The Provincial Treasurer may at any time assess tax, interest or penalties under this Act 'or notify in writing any person by whom a return f.or a taxation year has been filed that no tax is payable for a taxation year, and may (

a) at any time, if the taxpayer or person filing the return (

i) has made a misrepresentation or committed any fraud in fHing the return lor in supplying any information under this Act, or (ii) has filed with the Provincial Treasurer a waiver in the prescribed form wi'thin four years from the day o·f mailing of a notice of an original assessment or of a notification that no tax is payable for a taxation year, and (

b) within four years from the day referred tlo in clause (a), sub clause (ii) in any .other C3!se, re-assess or make additional assessments, or assess tax, interest or penalties, as the circumstances require.

(6) Where a taxpayer has filed the return required by

section 9 for a taxation year and, within one year from the day on or before which he was required by

section 9 to file the return for that year, has filed an amended return f.or the year claiming a deduction from income under ·section 27, ·subsecUon (1), paragraph (

e) of the federal Act, in respect of a busine·ss loss sUistained in the taxation year immediately following that year, the Provincial Treasurer shall re-assess the tax payer's tax for the year. 5

and in the time referred to in subsection (4), with respect to a taxation year to which the re assessment, additional assessment or assess ment of Itax, interest or penalties, as the case may be, relates. (

b) by striking out subsection (6) and by substituting therefor the following subsection:

(6) Where a taX!payer has filed the return re quired by

section 9 for a taxation year and, within one year from the day on or before which he was required by

section 9 to' file the return for that year, has filed an amended return for the year claiming ,a deduction from income under

section 111 of the federal Act in respect of non-capital losses, net eapital los,ses or restricted far,m losses sustained in the taxation year im.mediately follow ing that year, the Provincial Treasurer shall re assess the taxpayer's tax for the year.

Section 18 is amended by striking out subsections (1) and (2) and by substituting therefor the following sub sections: 18.

(1) Where the amount paid on account of tax pay able by a taxpayer under this Act for a taxation year be fore the expiration of the time .allowed for filing the return for that year is less than the amount of tax payable for the year under this Act, the person liable to pay the tax shall pay interest at the rate per annum prescribed for the purposes of

section 161, suhsection (1) of the federal Ad on the difference between those two ·amo.unts from the ex pira tion of the time for filing the return to the day of payment.

(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 tax, 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 pre s,cribed for t,he purposes of

section 161, subse'ction (1) of the federal Act from the day on or before which he was requir'ed 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.

Section 20 is renumbered as subsection (1) and the following subsections are added thereafter: 6

9. Payment of interest. Se,ction 18, subsections (1) and (2) read: 18.

(1) Where the amount paid on accO'unt of tax paya;ble by a taxpayer under this AC't for a taxation year before the expiration :of the time allowed for filing the return f,or that year is less than the amount of tax payable for the year under this Act, the person liable to' pay the tax shall pay intere,ston the difference between those twO' amounts from the expiration of the time f·or filing the return to' the day of payment at the rate oJ six per cent per annum.

(2) In addition to the interest payable under subsection (1), where a taxpayer, being required by this Act to pay a part O'r instalment .of tax, has failed to pay a;ll or any part thereof as required, he shall, on payment of the amount he failed to' pay, pay interest aJtsix per cent per annum from the day on or before which he was required to make the payment to' the day of payment or the beginning !{)f the period in respect of which he becomes liable to pay interest thereO'n under sub section (1), whi,chever is earlier. 10. A penalty will be authorized for tax evasion by failure to file returns as required. 6

(2) Every person who wilfully attempts to evade pay ment of the tax payable by him by failing to file a return of income as and when required by

section 9, subsection (1) is liable to a penalty of 50 per cent of the amount of tax sought to be evaded.

(3) Where, in any appeal under this Act, a penalty ass'essed by the Provincial Treasurer under this ,section is in issue, the burden of establishing the facts justifying the assessment of the penalty is on the Provincial Treasurer.

Section 21 is amended (

a) as to subsection (3) by striking out the words "the rate of three per cent per annum" and by sub stituting therefor the words "the rate per annum prescribed for the purposes of

section 164, sub section (3) of the federal Aet", (

b) by striking out subsection (4) and by substituting therefor the following subsection:

(4) Where, hy a decision of the Provincial Treasurer under

section 22 or by a deeision -of the court or of the Supreme Court of Canada, it is finally determined that the tax payable by a tax payer for a taxation year under this Act is less than the amount assessed by the assessment under

section 11 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 taxation year, the interest payable under subsection (3) on that overpayment shall be computed at the rate per annum prescribed for the purposes of

section 161, subsection (1) of the federal Act in stead of that prescribed for the purposes of

section 164, subsection (3) of the federal Act. and (

c) by adding after subsection (7) the following sub section:

(8) Where, in the course of administering the estate of a deceased taxpayer, the taxpayer's legal representative has, within the 12-month period im mediately following the death of the taxpayer, dis posed of certain property of the estate described in

section 164, subsection (6), paragraphs (

a) or (

b) of the federal Act,

section 164, subsection (6) of the federal Act is applicable with all necessary modifications. 7

II. Hefunds of overpayments.

Section 21, subsections (3) and (4) read:

(3) Where an amount in respect of an overpayment is refunded, or applied under this

section on other liability, interest at the rate of three per cent per annum shall be paid or apI2lied there10n for the period commencing with the . latest of (

a) the day when the overpayment arose, or (

b) the day on or before which the return in respe·ct of which the tax was paid was required to be filed, or (

c) the day when the return was actually filed, and ending with the day of refunding or application aforesaid, unle,g.s the amount of the interest so calculated is less ,than 'one dollar, in which event no interest shall be paid or applied under this subsection.

(4) Where, by a dedsion of the Provincial Treasurer under

section 22 or by a decision of the court or the Supreme Court of Canada, it is finally determined thwt the tax payable by a taxpayer for a taxation year under this Act is less than the amount assessed by the assessment under

section 11 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 taxation year, the interest payable under sub section (3) on that overpayment shall be computed at six per cent instead of three per cent. 7

8 1.2.

Section .'22 is amended (

a) by striking out subsection (3) and by sUbstituting therefoT the following subsections:

(3) Upon receipt of a notice of objection, the Provincial 'Treasurer shall, (

a) where the taxpayer indicates in the notice of objection that he wishe3 to appeal immediately to the court and that he waives reconsidera tion of the asseS8ment and the Provincial Treasurer ,consents, file a copy of the notice of objection with the clerk of the court of the judicial district in which the taxpayer resides, or (

b) with all due disp.atch, reconsider the assess ment and vacate, confirm or vary the assess ment or reassess, and he shall thereupon notify the taxpayer of his action by registered mail. (3.1) 'Vhere the Provincial Treasurer files a copy of a notice of ohjection pur,suant to subsection (3), dause (a), the Provincial Treasurer shall he deemed, for the purpose of se·ction 23, to have con firmed the assess'ment to which the notice relates and the taxpayer who served the notice shall he deemed to have thereupon instituted an appeal in accordance with that section. and (0) by adding after subsection (4) the following sub section:

(5) Where a taxpayer has served a notice of obje·ction to an assessment in accordance with this

section and thereafter the Provincial Treasurer reassesses the taxpayer's tax for the taxation year in respect of which the nogce of objection was served or issues an additional assessment in respect thereof, and notifies the taxpayer of his action by registered mail, the taxpayer may, without serving a notice of objection to the reassessment or the additional assessment, (

a) appeal therefrom to the court in accordance with

section 23, or (

b) if an appeal to the court has been instituted with respect to the as,sessment, amend such appeal by joining thereto an appeal in respect of the reassess'ment or additional assessment in such manner and on such terms if any as the court directs. "

8 12. Notice of objection.

Section 22 (3) reads:

(3) Upon receipt of the notice of 'o,bjection, the provincial 'l'reasurer sh3!ll with all due despatch reconsider the a;ssessment and vacate, con firm or vary the assessment or re-assess and he shall thereupon n10tify the taxpayer of his action by registered mail.

Section 37 is amended (

a) as to! subsection (6) by striking out all that portion of the subsection after clause (

b) and by substitut 'l~ng therefor the following words: "together with interest thereon at the rate per an num prescribed for the purposes of

section 227, subsection (8) of the federal Act.", and (

b) by striking out subsection (7) and by substituting therefor the following subsection:

(7) Every person who has failed to remit or pay an amount deducted or withheld as required by this Act or a regulation is liable to a penalty 'Of 10 per cent of that amount or $10, whichever is the great er, in addition to the amount itself, together with interest on the amount at the rate per annum pre scribed for the purposes of se'ction 227, subsection (8) of the federal A,ct, but where a collection agree ment is entered into the Minister may refrain from levying or reduce the penalty if the person who is liable therefor is liable to pay a penalty under

section 227, subsection (9) of the federal Act by reason of the failure to pay an amount described in paragraph (

a) of that subsection.

Section 39 is amended (

a) as to subsection (1) by striking out clause (

d) and by substituting therefor the following clause: (

d) if, during the course of an audit or examina tion it appears to him that there has been a contravention of this Act or the regulations, seize and take a way any of the documents, books, records, papers or things that may be required as evidence as to the violation of any provision of this Act or a regulation. (

b) by adding after subsection (1) the following sub section: ( 1.1 ) The Provincial Treasurer shall, (

a) within 120 days from the date of seizure of documents, bo.oks, records, papers or things pursuant to. subsection (1), clause (d), or (

b) if within that time an application is made under this subsectio.n that is, after the expiry of that time, rejected, then forthwith upon the disposition of the application, re~urn the d00uments, books, records, papers or thIngs to. the person from whom they were seized unless a Judge of the court or a district court, on 9

13. Penalties for failure to deduct or remit.

Section 37, sub sections (6) and (7) read:

(6) Any pemon who has failed to deduct or withhold any am~)Unt ~s required by this Act or a regulation is liahle to pay tOo Her MaJesty m right of Alberta (

a) if the amount should have been deducted or .withheld under secUon 12 from an amount that has been paId to a person resident in Alberta, ten per 'cent of the amount that should have been deducted or withheld, and (

b) in any other 'case, the whole amount that should have been deducted or withheld, together with interest thereon at the rate of ten per ·cent per annum.

(7) Every per,son who has failed to remi,t or pay an amount deducted or withheld as required by this Act or a regulati'on ils liable to a pen alty of ten per cent of that amoufolt or ten dollars,. w~i'chever is the greater, in addition to the amount Itself, to'gether WIth mterest on ~he amount at the rate of ten per cent per annum, but where a col~ectlOn agreement is entered into the Minister may refrain fr.om levYIng or reduce the penaUy if the pers'on who is liable therefor is liable to pay a penalty under

section 123, subsection (9) of the federal Act by reason of a failure to pay an amount de·scribed in paragraph (

a) of that subsection. 14. Power to enter, examine and seize and procedure for inquiries.

Section 39 reads: 39.

(1) Any person thereunto authorized by the Provincial Treas urer for any purpose related to the administration or enforcement 'of this Act may, at all reasonable times, enter into any premise,s or place where any business is carried on in Alberta or any property is kept or anything is done in connecUon with any businelss, or any books lor records are, or should be, kept pursuant to ,this Act, and may (

a) audit or examine the books and records and any account, voucher, letter, telegram or other do·cument which relates lor may relate to the information that is or should be in the books or records or the amount of tax payable under this Act, (

b) examine property described by an inventory or any property, proce;ss or matter an examination of which may, in his opinion, assist him in determining the accuracy of an inventory or in as'certaining the information that is or should be in th'3 books or reoords or the amount of any tax payable under this Act, (

c) require the owner or manager of the property or business and any other person on the premises or place to give him all re3Jsonable assistance with his audit or examination and to answer all proper questions relating to the audit or examination either .orailly or, if he so requires, in writing, on oath or by statutory declaration and, for that purpose, require the owner or manager to attend at the premises or place with him, and (

d) if, during the 'course of an audit or examination, it appears to him that there has been a contravention of this Act or the regulations, seize and take away any of the records, book,s, aoclOunts, vouchers, letters, telegrams and other documents and retain them until they are produced in any court proceedings.

(2) The Provincial Treasurer may, for any purpose related to the administration or ·enforcement of this Act, by registered letter or by a demand ·served perslonally, require from any per.son (

a) any information or additional information, including a return of income or a supplementary return, or (

b) production, or production on oath, of any blooks, letters, ac counts, invoices, statements (financial or otherwise) or other documents, within such reasonable time as may be stipulated therein. 9

10 applkation made by or on behalf of the Provincial Treasurer supported by evidence on oath establish ing that the Provincial Treasurer has reasonable and probable grounds to believe that there has been a violation of this Act or a regulation and that the seized documents, hooks, records, papers or things are or may be required as evidence in relation thereto, orders that they be retained by the Pro vincial Treasurer until they are produced in any court proceedings which order the judge hereby is empowered to give on ex parte wpplieation. (

c) by striking out subsection (3) and by substituting therefor the following subsections: (3) \Vhere the Provincial Treasurer has reason able and probable grounds to believe that a violation of this Act or a regulation has been committed or is likely to be 0ommitted, he may, with the approval of a judge of the court or of a district court, which ap proval the judge is hereby empowered to give on ex parte application, authorize in writing any officer of the Treasury Department, together with such members of the Royal Canadian Mounted Police or other peace officers as he calls on to assist him and such other persons as may be named therein, to en ter and search, if necessary by force, any building, receptacle or place in Alberta for documents, books, re00rds, papers or things that may afford evidence as to the violation of any provision of this Act or a regulation and to seize and take away any such documents, books, records, papers or things and re tain them until they are produced in any court proceedings.

(3.1) An application to a judge under subsection (3) shall be supported by evidence on oath estab lishing the facts upon which the application is based.

(3.2) The person from whom any documents, books, records, papers or things seized pursuant to subsection (1), clause (

d) or subsection (3) is, at all reasonable times and subj ect to such reasonable conditions as may be determined by the Provincial Treasurer, entitled to inspect the seized documents, books, records, papers or things and to obtain copies thereof at his own expense. (

d) by adding after subsection (4) the following sub section:

(4.1) Where the Provincial Treasurer, pursuant to subsection (4), authorizes a person to make an inquiry, the Minister shall forthwith apply to the court for an order appointing a hearing officer be fore whom the inquiry will be held. and

(3) The Provincial Treasurer may, for any purp10lse related to the administratio.n or enforcement of thi,s Act, with the apprDval of a judge of the court or of a district court, whtch apprDval the judge is hereby empowered to give upon ex parte application, al1'thlorize in writing any officer of the Treasury Department, together with any peace officer whom he calls on to assist him and such other persons as may be named therein, to enter and search, if neces,sary by force, any building, receptacle or place in Alberta for documents, b1o,oks, records, papers or thing,s which may afford evidence as to the contravention of any provision of this Actor the regulations and to seize and take away any such documents, books, reCl0'rds, papers or things and retain them until they are produced in any court proceedings.

(4) The Provincial Treasurer may, for any purpo,se related to the administration or enfor'cement of this Act, authorize any person, whether or not he is an 'oifficer of the Treasury Department, to make such in quiry as he may deem necessary with reference t.o anything relating to the administration ,or enforcement of thi,s Act.

(5) Where any book, record or other document has been seized, examined or produced under this section, the perS10'n by whom it is seized or examined Dr to whom it is produced or any officer of the Treasury Department may make, or cause to be made, one Dr more copies thereoif and a document purporting to be certified by the PrD vincial Treasurer or a person thereunto authorized by the P:wvincial Treasurer to be a copy made pursuant to thts se'ction is admissible in evidence and has the same probative force as the Driginal document would have had if it had been proven in the ordinary way.

(6) No person ,shall hinder or molest or interfere with any person doing anything that he is authorized by or pursuant to this

section to' do or prevent or attempt to prevent any person doing any such thing and, notwithstanding any ,other ,law to the contrary, every person shall, unless he is unable DO' do so, do e,verything he is required by or pursuant to this

section to do.

(7) Every person thereunto authorized by the PrDvincial Treasurer may administer or receive an oath, wffirmation or statutory declaration required to be given by Dr pursuant ,to this sectilon.

(8) For the purpose of an inquiry authorized under subsection (4), the person authorized to make the inquiry has all the powers and authorities of a commissioner appointed under the Public Inquiries Act.

( ~) 1;g rl~iki:ng (jut .'3ub~ection (8) and by sUbstituting thl';f'~l'ff the follow~ng subsections: (_~ J For the purposes of an inquiry authorized -;~J~':!, ~ubsection (4), a hearing officer appointed -;:;_'.:':1' g11r)Section (4.1) in relation thereto has all the ;/.J -;"·,:r~ and authorities conferred on a commissioner C:.~VJinted under The Public Inquiries Act. (~) A hearing officer appointed under subsection (4..1.1 in relation to an inquiry shall exercise the VJT.~rs and authorities conferred on a commissioner ~ppoint8i under The Public Inquiries Act in rela tion to such persons as the person authorized to make the inquiry considers appropriate for the con duct thereof but the hearing officer shall not exer cise the powers to punish any person unless, on ap plication by the hearing officer, a judge of the court or a district court certifies that such power may be exercised in the matter disclosed in the application and the applicant has given to the person in respect of whom he proposes to exercise such power 24 hours' notice of the hearing of the application or such shorter notice as the judge considers reason able.

(10) Any person who gives evidence in an inquiry authorized under subsection (4) is entitled to be represented by counsel and, upon request made by him to the Provincial Treasurer, to receive a trans cript of the evidence given by him.

(11) Any person whose affairs are investigated in the course of an inquiry authorized under sub section (4) is entitled to be present and to be rep resented by counsel throughout the inqui~y unless the hearing officer appointed under subsectIOn (4.1) in relation to the inquiry, on appli.c~tion ~y the Provincial Treasurer or a person gIVIng eVIdence orders otherwise in relation to the whole or any part of the inquiry on the ground that the presence of the person and his counsel, or either of them,.wo~ld be prej udicial to the effective conduct of the InqUIry. 15. Se?tio~ 45 is amended by striking out clause (

f) and by subst~tut~ng therefor the following clause: (

f) a fine of not less than 25 per cent and not more than double the amount of the tax that was sought to be evaded, or Sci~du~:~:;~f;s1ons of the Act s~t out in Column I of the extent indicated in ~~~sc~:'d~1~ed ~n the manner and to the 11

15. The penalty for offences under the Act will be changed.

Section 45 reads: 45. Every person who (

a) makes, or participates in, assents to or acquiesces in the makin.g of, fa.lse or de<:eptive .statements in a return, certificate, ,state ment or answer filed or made as required by or under this Act or a regulation, or (

b) to evade payment of a tax imposed by this Act, destroys, alters, mutilates, secretes .or otherwise disp'o.ses of the records or books of account of a taxpayer, or (

c) makes, or assents to lor acquie'S<:es in the making of, false or deceptive entries, or omits, or assents to !o,r acquiesces in the omission, to enter a material particular, in records or books of account of a taxpayer, or (

d) wilfully, in any manner, evades or attempts to evade compliance with this Act or payment of taxes imposed by this Act, or (

e) c.onspire,s with amy person to commH an ,offence described by clauses (

a) to (d), i~ gutlty of an offence and, in additi.on to any penalty otherwise pro VIded, is liable on

summary conviction to (

f) a fine of not less than twenty-five dollars and not more than ten thousand dollars plus, in an appropriate case, a.n amount not exceeding double the amount of the tax that should have been shown to be payable or that wa.s sought to be evaded, or (

g) both the fine described in dause (

f) and imprisonment for a term not exceeding two years. 16. Cross-references to the federal Act will be amended to con form to federal amendments. 11

17. This Act comes into force on the day upon which it is assented to and upon so coming into force shall be deemed to have bee1L in force at all times on and after January 1, 1972 and shall apply to the 1972 and subsequent taxation years. 12

Column I

SCHEDULE (Amendments ) Column II Column III Provision of The Alberta Income Tax I Section, ~tc, of Federal, Income Tax I The reference is amended to read Act Act that IS referred to In Alberta Act

section 2, subsection (1), clause 16

section 2, subsection (1), clause 29, subclause (iii)

section 4, subsection (4), clause (

a) section 4, subsection

(5) section 5, subsection

(2) section 7, subsection

(1) section 7, subsection (1), clause (

a) section 7, subsection (1), clause (a) ~

section 7, subsection (1), clause (

c) section 63, subsection

(1) section 104, subsection

(1) section 63, subsection (13), paragraph

section 104, subsection (23), para- (

a) graph (

a) section 33, subsection (3), paragraph

section 120, subsection (4), para- (

a) graph (

a) section 34, subsection

(2) section 40, subsection

(2) section 42, subsection (1)

section 42

section 117, subsection

(6) section 124, subsection (4), para graph (

a) section 119, subsection (1)

section 119

section 42, subsection (1), paragraph I

section 119, subsection (1), para- (

c) graph (

c) section 42

section 119

-~ Column I

SCHEDULE (Amendments) Column II Column III Provision of The Alberta Income Tax I Section, etc. of Federal Income Tax I Th f . ddt d Act Act that is referred to in Alberta Act e re erence IS amen e 0 rea

section 7, subsection (2), clause (a), s u bcla use (ii)

section 7, subsection

(3) section 7, subsection

(6) section 7, subsection

(6) section 8, clause (

a) section 12, subsection (1), clause (

h) section 13, subsection

(2) section 14, subsection

(2) section 15, subsection (2), clause (

a) section 15, subsection (2), clause (

b) section 33

section 42

section 42, subsection

(1) section 42, subsection

(4) section 62, subsection (1)

section 79C

section 48, paragraph (

a) section 49, paragraph (

a) section 50, subsection (1), para graph (a), subparagraph (

i) section 50, subsection (1), para graph (a), subparagraph (ii)

section 120

section 119

section 119, subsection

(1) section 119, subsection

(5) section 149, subsection (1)

section 147

section 155, paragraph (

a) section 156, paragraph (

a) section 157, subsection (1), para graph (a), subparagraph (

i) section 157, subsection (1), para graph (a), subparagraph (ii)

Column I

SCHEDULE (Amendments) Column II Column III Provision of The Alberta Income Tax I Section, etc. of Federal Income Tax I The reference is amended to read Act Act that is referred to in Alberta Act

section 15, subsection (3)

section 17

section 18, subsection

(5) section 18, subsection

(8) section 19, subsection

(4) section 21, subsection (5) U;

section 21, subsection

(7) section 50, subsection (2)

section 52

section 53

section 63, subsection

(2) section 63, subsection (13), para graph (

e) section 64, subsection (2), para graph (

a) section 54, subsection (4)

section 27

section 55

section 57, subsection (3a)

section 27

section 157, subsection (2)

section 159

section 160

section 104, subsection

(2) section 104, subsection (23), para graph (

e) section 70, subsection

(2) section 161, subsection (4)

section 111

section 162

section 164, subsection (4)

section 111

-0. Column I

SCHEDULE (Amendments) Column II Column III Pr, ovision of The Alberta Income Tax I Section, ~tc. of Federal. Income Tax I The reference is amended to read Act Act that IS referred to In Alberta Act

section 29, subsection (4), clause (

b) section 30, subsection

(2) section 37, subsection

(8) section 40, subsection

(1) section 40, subsection (2)

section 41

section 42, subsection (1)

section 46

section 116, subsection

(5) section 117 Division D

section 126A

section 126A

section 117, subsection (1), para graph (

d) section 117, subsection (1), para graph (

d) section 117, subsection (1), para graph (

e) section 131

section 132

section 220, subsection

(5) section 221 Divisions I and J

section 232

section 232

section 221, subsection (1), para graph (

d) section 221, subsection (1), para graph (

d) section 221, subsection (1), para graph (

e) section 238

section 239 Title: 1972 (17th, 1st) Bill 47, The Alberta Income Tax Amendment Act, 1972

Document details

Collection	Alberta — Bills
Citation	L17 S1 5028
Type	bill
Volume / chapter	L17 S1 5028
Language	en
Format	json
Source	PROVINCIAL
Identifier	cc793357c4bda8a178dab3aae398d710bbe0ca15

Source file is stored in the law ingest library (json).