Bill 57 (Legislature 11, Session 4)

L11 S4 6968

Alberta — Bills

Bill No. 57 of 1951. 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. The provisions of the above Act are applicable to the 1949 and subsequent taxation years for the duration of the Dominion-Provincial tax agreement. Under the agreement this Act and the corresponding Dominion Act are being jointly administered. These changes as contained in this Bill are based on corresponding .changes· in the Dominion Act and are designed to maintain uniformity between the Dominion and Provincial legislation on this subject in accordance with the provisions of the agreement.

Section 7, subsection (1), which deals with income of shareholders, is amended. A new subsection is also added to this

section dealing with interest on income bonds.

Section 8 is repealed. It dealt with the undistributed in come of ~orporations.

Section 9, which deals with amounts not included in com puting income, is amended by the addition of two new clauses dealing with war savings certificates and with pros pecting.

Section 10 is amended by striking out clause (

c) of sub- section (1) and substituting a new clause. A new clause (

m) is added at the end of subsection (1) dealing with profit sharing plans. The amendments to

section 10 are appli~able to the 1949 and subsequent ta~ation years.

Section 11, which deals with exploration costs for mining and drilling is amended to include references to natural gas as well as to petroleum. . A new subsecti0!l (1a) !s added immediately after subsectIOn (1). Subs~ctIOn ~3) .IS struck out and two new subsections are substItuted In Its stead. Clause (

a) of subsection (4) is struck out. and a ne~ clause is substituted in its stead. A new subsectIon (4a) IS added immediately after subsection (4).

Section 17, which deals with lease-option agreement~ a~d hire-purchase agreements, is repealed 'and a new

sectIOn IS substituted. The new

section is applicable, in the case of

ii movable property to 1949 and subsequent taxation years, and in the case of other contracts or arrangements to 1950 and subsequent taxation years.

Section 19, which deals with disposition of depreciable property, is amended. Subsection (1) is struck out and two new subsections are substituted in its stead. Subsection (3) ,clause (

e) of the

section is amended by the addition of a new subclause (iii). Subsection (6) of

section 19 is also repealed and two new subsections are substituted in its stead. A new

section 20a dealing with transfers of rights to income is added immediately after

section 20. The new

section is applicable to the 1950 and subsequent taxation years.

Section 21 is amended by striking out ,clause (

a) and substituting two new clauses dealing with charitable do nations. The new clauses are applicable to the 1950 and subsequent taxation years.

Section 28 is amended by striking out dause (

a) and sub stituting a new clause dealing with deep test wells. A new subsection (2) is also added to the

section dealing with such deep test oil wells.

Section 30 is amended by striking out subsection (2) and substituting a new subsection dealing with demands for returns.

Section 33 is repealed. The repeal is effective for the 1949 and subsequent taxation years.

Section ,37 is amended by the addition of a new subsection (7) dealing with income from sources in another country which cannot be transferred to Canada. The new sub

section is applicable to the 1949 and subsequent taxation years. A new

section 38a is added immediately after

section 38 dealing with evasion of tax.

Section 43, subsection (1) dealing with exemptions for personal corporations is amended by striking out clause (

c) and substituting three new -clauses dealing with certain designated organizations, ,charitable organizations and non profit corporations. A new subsection (3) is also added to this section. S~tion 49, dealing wit~ ,co-operatives, is amended by the a?dI~IOn of a new subsection d~ahng with income from pro VInCIal grants to the co-operatl vee The amended

section is applicable to the 1949 and subsequent taxation years.

Section 52, dealing with special contributions by em ployers to supera:r;nuation or pension funds, is amended. The ~mended

sectIOn is applicable to 1949 and subsequent taxatIon years.

iii Two new sections are added immediately after

section 52. The new

section 52a deals with employees profit shar ing plans. The new

section 52b deals with mining and amounts that are not to be included in computing the income from mining properties. Both these new sections are ap plicable to 1949 and subsequent taxation years. A new

section is added immediately after

section 63 providing for the filing of an information return.

Section 67 is amended by the addition of a new sub section (2) which is applicable to 1949 and subsequent taxation years.

Section 71, which deals with procedure and evidence, is amended by the addition of two new subsections both of which deal with the proof of certain documents in court proceedings.

Section 7-5 is amended by striking out subsection (8) and substituting a new subsection. The First

Schedule is amended by substituting the words "taxable income" for the word "income" wherever it ap pears. This change is applicable to the 1949 and subsequent taxation years. Apart from those se,ctions where specific provision has been made as to the time of their coming into force the amendments contained in this Bill ,come into force upon assent. KENNETH A. McKENZIE, Legislative Counsel. (This note does not form any part of the Bill but is offered in explanation of its provisions.)

BILL No. 57 of 1951.

An Act to amend The Alberta Corporation Income Tax Act, 1949. (Assented to , 1951.) HIS 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.

Section 7 is amended,- (

a) by striking out all that portion of subsection (1) following "Clause (

c) and by substituting the follow- ing: "otherwise than,-

Section 7 amended "(

i) on the reduction of capital, the redemption of Stock shares or the winding-up, discontinuance or ~~j~~~~: reorganization of its business; rights "(ii) by payment of a stock dividend; or "(iii) by conferring on all holders of ~ommon shares in the capital of the corporation a right to buy additional common shares therein; the amount or value thereof shall be included in computing the income of the shareholder for the year." ; (

b) by renumbering subsection (3) as subsection (4); (

c) by adding immediately after subsection (2) the following new subsection: "

(3) An annual or other periodic amount paid by Int~rest . t . t f' on Income a corporatIon to a axpayer In respec 0 an Income bonds bond or income debenture shall be deemed to have been received by the taxpayer as a dividend unless the corporation is entitled to deduct the amount so paid in ~omputing its income.".

Section 8 is repealed.

Section 8 repealed

Section 9 is amended,- ~:!~~~~ (

a) by striking out the word "and" where it occurs at the end of clause (a);

War saving certificate Prospecting

Section 10 amended Interest Profit sharing plan

Section 11 amended Corporations in petroleum or natural gas business 2 (

b) by adding immediately after clause (

b) the fol lowing new clauses: "(

c) an amount re,ceived under a war savings cer tificate issued by His Majesty in right of Canada or under a similar savings certificate issued by His Majesty in right of Newfound land before April 1, 1949; and "(

d) an amount received as a result of prospecting that

section 52b provides is not to be included.". 5.

(1) Section 10, subsection (1) is amended,- (

a) by striking out -clause (

c) and by substituting the following: " (

c) an amount paid in the year or payable in re spect of the year (depending upon the method regularly followed by the corporation in com puting its income), pursuant to a legal obliga tion to pay interest on,- " (

i) borrowed money used for the purpose of earning income from a business or prop erty (other than property the income from which would be exempt) ; or " (ii) an amount payable for property acquired for the purpose of gaining or producing income therefrom or for the purpose of gaining or producing income from a busi ness (other than property the income from which would be exempt) ; or a reasonable amount in respect thereof, which ever is the lesser;"; (

b) by striking out the word "and" where it occurs at the end of clause (k) ; (

c) by adding the word "and" at the end of clause (l) ; (

d) by adding immediately after clause (

l) the follow ing new -clause: "(

m) an amount paid by the corporation in trust for its employees under an employees' profit shar ing plan as permitted by

section 52a.". (2) Subsection (1) is applicable to the 1949 and subse quent taxation years.

Section 11 is amended,- (

a) by striking out all that portion of subsection (1) preceding clause (

a) and by substituting the fol lowing: "11.

(1) A corporation whose principal business is production, refining or marketing of petroleum, petroleum products or natural gas or exploring or drilling for petroleum or natural gas may deduct in computing its income, for the purposes of this Act, the lesser of,-";

3 (

b) by adding immediately after subsection (1) the following new subsection: "(la) In computing a deduction under subsection Idium (1), no amount shall be included in respect of a payment for or in respect of a right, license or privilege to explore for, drill for or take petroleum or natural gas other than an annual payment not exceeding one dollar per acre.". (c). by striking out subsection (3) and by substituting the following: (d) (e) "

(3) A corporation whose chief business is that B~s!ness of f .. I . f .

I ddt· lTIlnmg or o mInIng or exp OrIng or mlnera s may e uc , In exploring computing its income for the purpose of this Act for a taxation year, an amount equal to all pros pecting, exploration and development expenses incurred by it in the taxation year, directly or in directly, in searching for minerals in Canada if the corporation has filed certified statements of such expenditures and has satisfied the Provincial Treasurer that it has been actively engaged in pros- pecting and exploring for minerals in Canada by means of qualified persons and has incurred the expenditures for such purposes.

"(3a) Subsection (3) is applicable in respect of Application expenditures incurred in the calendar years 1949 to 1952, inclusive."; by striking out clause (

a) of subsection (4) and by substituting the following: " (

a) the testing of a significant geological structure by a deep test well that was spudded in during, or the deepening of which was commenced in, 1950 and that proved unproductive; or"; by adding immediately after subsection (4) the following new subsection: " (4a) Subsection (4) is applicable mutatis mu tandis in respect of expenditures made in connection with,- . " (

a) the testing of a significant geological structure by a deep test oil well that was spudded in during, or the deepening of which was commenced in, 1951 and that proved unproductive; or " (

b) the testing of a significant stratigraphic trap by a group of test wells that were spudded in during 1951 and drilled to an aggregate depth of twenty-five thousand feet and all of which wells proved unpro ductive." . . . t k t d th f II l·n I·S

Section 17 7.

(1) SectIOn 17 IS S ruc ou an e 0 ow g amended substituted: Lease-option, "1·7

(1) A lease-option agreement, a hire-purchase hire- h . I . purc ase, agreement or other contract or arrangement for the easIng etc.

Application

Section 19 amended Undepreci ated capital cost 4 or hiring of property, except immovable property used in carrying on the business of farming, by which it is agreed that the property may, on the satisfaction of a condition, vest in the lessee or other person to whom the property is leased or hired shall, for the purpose of -computing the income of the lessee or other such person, be deemed to be an agreement for the sale of the property and rent or other consideration paid or given thereunder shall be deemed to be on account of the price of the property and not for its use. "

(2) The lessee or other person in whom the property may vest shall, for the purpose of a deduction under

section 10, subsection (1), clause (a), be deemed to have acquired the property at a capital cost equal to the price fixed by the contract or arrangement minus the aggregate of all amounts paid by him,- "(

a) in the case of a contract or arrangement relating to movable property, befo-re the 1949 taxation year; and " (

b) in the case of any other contract or arrangement, before the 1950 taxation year; . under the contract or arrangement on account of the rent or other consideration. "

(3) Where a person is deemed under this se-ction to ha ve acquired property under a contract or arrangement and the contract or arrangement is subsequently res-cinded or determined, he shall for the purpose of

section 19. be deemed to have disposed of the property for the price fixed by the contract or arrangement minus the aggregate of all amounts paid by him under the contract or arrangement on account of the rent or other consideration.".

(2) This

section is applicable,- (

a) in the case of a contract or arrangement relating to movable property, to the 1949 and subsequent taxation years; and (

b) in the case of any other contract or arrangement, to the 1950 and subsequent taxation years. 8.

(1) Section 19 is amended,- (

a) by striking out subsection (1) and by substituting the following: "19.

(1) Where depreciable property of a cor poration of a prescribed class has, in a taxation year, been disposed of and the proceeds of disposi tion exceed the undepreciated capital cost to it of depreciable property of that -class immediately before the disposition, the lesser of,- " (

a) the amount of the excess; or " (

b) the amount that the excess would be if the property had been disposed of for the capital cost thereof to the corporation; shall be inclwled in computing its income for the year.

5 " (la) Where one or more amounts are by sub section (1) required to be included in computing a corporation's income for a taxation year in respect of the disposition of depreciable property of a pre scribed class and the corporation has, during the year but following the dispositions, acquired fur ther depreciable property of that class, notwith standing subsection (1) and clause (

e) of subsec- • tion (3), the following rules are applicable,- (b) "(

a) if the aggregate of the amounts that would, according to the terms of subsection (1), be included thereunder in computing its income is equal to or exceeds the amount that would, according to the terms of clause (

e) of sub section (3), be the undepreciated capital cost to it of depreciable property of that class at the end of the year before any deduction is made under

section 10, subsection (1), clause (

a) for that year,- "(

i) the amount to be included in computing its income for the year under subsection (1) in respect of dispositions of depre ciable property of that class is that aggre gate minus the amount that would be that undepreciated capital cost; and "(ii) the undepreciated capital cost to it of de preciable property of that class at the end of the year is nothing; and "(

b) if the aggregate of the amounts that would, a'ccording to the terms of subsection (1), be included thereunder in computing its income is less than the amount that would, according to the terms of clause (

e) of subsection (3), be the undepreciated capital cost to it of depre dable property of that class at the end of the year before any deduction is made under sec tion 10, subsection (1), clause (

a) for that year,- "(

i) no amounts shall be included in computing its income for the year in respect of de preciable property of that class under subsection (1); and "(ii) the undepreciated ,capital cost to it of de preciable property of that class at the end of the year before any deduction is made under

section 10, subsection (1), clause (

a) for the year is the amount that it would be according to the terms of clause (

e) of subsection (3) minus that aggre gate." ; by striking out the word "and" where it occurs at the end of subclause (

i) of clause (e) ;

Application New

section 20a Transfers of rights to income Application

Section 21 amended Charitable donations 6 (

c) by adding the word "and" at the end of subclause (ii) of clause (e); (

d) by adding immediately after subclause (ii) of clause (

e) the following new subclause: "(iii) each amount by which the undepreciated cap ital cost to the corporation of depreciable property of that class as of the end of a pre vious year was reduced by virtue of subsection (1a)."; (

e) by striking out subsection (6) and by substituting the following: "(6) Subsection (1) does not apply in determin ing a ,corporation's income for a taxation year from farming or fishing unless it has elected to take a deduction for that or a previous year under regula tions made under

section 10, subsection (1), clause (

a) other than a regulation providing solely for an allowance for computing income from farming or fishing. "

(7) Notwithstanding subsection (6), where a deduction has been taken under

Part VII of the regulations under this Act, subsection (1) is ap plicable in respect of the pres:cribed classes created by the said

Part VII.".

(2) This

section is applicable to the 1949 and subsequent taxation years. 9.

(1) The following new

section is added immediately after

section 20: "20a. Where a corporation has, at any time before the end of a taxation year (whether before or after the com mencement of this Act) , transferred or assigned to a person with whom it was not dealing at arms length the right to an amount that would, if the right thereto had not been so transferred or assigned, be included in computing its income for the taxation year because the amount would have been received or receivable by it in or in respect of the year, the amount shall be included in computing the corporation's income for the taxation year unless the income is from property and the corporation has also transferred or assigned the property.".

(2) This

section is applicable to the 1950 and subsequent taxation years.

Section 21 is amended by striking out clause (

a) and by substituting the following: " (

a) the aggregate of gifts made by the corporation in the year to,- "(

i) a charitable organization in Canada exempt from tax under this Part by

section 43, sub section (1), clause (ca);

7 "(ii) a corporation resident in Canada and exempt from tax under this Part by

section 43, sub ·section (1), clause (cb); "(iii) a trust resident in Canada all the property of which is held absolutely in trust exclusively for charitable purposes, that has not, since J,une 1, 19 1 50, acquired control of any ,corporation and that, during the period,- "(

A) did not carryon any business; "(

B) had no debts incurred since June 1, 1950, other than obligations arising in respect of salaries, rents and other current oper ating expenses; and "(

c) made gifts, the aggregate of which is not less than ninety per cent of its income for the period, to charitable organizations in Canada or ,corporations resident in Can ada the incomes of which for the period are exempt from tax under this Part by

section 43, subsection (1), clauses (ca) or (cb); and . "(iv) His Majesty in right of any province; and "(

v) any Canadian municipality; provided that such aggregate does not exceed five per cent of its income for the year and that pay ment of the amounts is proven by filing receipts with the Provincial Treasurer; "(aa) the aggregate of gifts made by the corporation in the year to His Majesty in right of Canada, if pay ment of the amounts is proven by filing receipts with the Provincial Treasurer; and",

(2) ThIS

section is applicable to the 1950 and subsequent taxation years,

Section 28 is amended,- (

a) by renumbering the

section as subsection (1) ; (

b) by striking. out clause (~) of subsection (1) and

Section 28 amended by substitutIng the followIng: " (

a) the testing of a significant geological structure Deep test by a deep test well that was spudded in during, wells or the deepening of which was commenced in, 1950 and that proved unproductive; or" (

c) by adding immediately after subsection (1) the following new subsection: "

(2) Subse,ction (1) is applicable mutatis mutan- Deep test dis in respect of expenditures made in connection wells with,- " (

a) the testing of a significant geological structu:e by a deep test oil wep that wa,s spudded In during, or the deepenIng of WhICh was c?m menced in, 1951 and that proved unproductIve; or

Section 30 amended Demands for return

Section 33 repealed Application

Section 37 amended Income in blocked currency New

section 38a "(b) 8 the testing of a significant stratigraphic trap by a group of test wells that were spudded in during 1951 and drilled to an aggregate depth of twenty-five thousand feet and all of which wells proved unproductive.".

Section 30 is amended by striking out subsection (2) and by substituting the following: "

(2) Every corporation, whether or not it is liable to pay tax under this Part for a taxation year and whether or not a return has been filed under subsection (1) or (3), shall, on demand by registered letter from the Provincial Treas urer, file, within such reasonable time as may be stipulated in the registered letter, with the Provin,cial Treasurer in prescribed form and containing prescribed information a return of the income for the taxation year designated in the letter." . 13,.

(1) Section 33 is repealed.

(2) This

section is applicable to the 1949 and subsequent taxation years. 14.

(1) Section 37 is amended by adding immediately after subsection (6) the following new subsection: "

(7) Where the income of a corporation for a taxation year, or part thereof, is from sources in another country and the ·corporation by reason of monetary or exchange restrictions imposed by the law of that country is unable to transfer it to Canada, the Provin~ial Treasurer may, if he is satisfied that payment as required by this Part of the whole of the additional tax under this Part fOl'the year reasonably attributable to income from sources in that country would impose extreme hardship on the corporation, postpone the time for payment of the whole or a part of that additional tax for a period to be determined by the Provincial Treasurer but no such postponement may be granted if any of the income for the year from sources in that country has been,- "(

a) transferred to Canada; " (

b) used by the corporation for any purpose whatsoever, other than payment of income tax to the Govern ment of that other country on income from sources therein; or " (

c) disposed of by the corporation; and no i~t.erest is payable under this

section in respect of that addItIonal tax, or part thereof, during the period of postponement." .

(2) This

section is applicable to the 1949 and subsequent taxation years. 15.

(1) The following new

section 38a is added imme diately after

section 38:

9 "38a. Every corporation that has wilfully, in any man- Evasion ner, eva~ed or atte~pted to evade payment of the tax pay- of tax able by ~t ~nder thIS Part for a taxation year or any part thereof IS lIable to a penalty, to be fixed by the Provincial Treasurer, of not less than twenty-five per cent and not more than fifty per cent of the amount of the tax evaded 'or sought to be evaded.".

(2) This

section is applicable to the 1949 and subsequent taxation years.

Section 43 is amended,-

Section 43 amended (

a) by striking out ~lause (

c) of subsection (1) and by substituting the following: " (

c) an agricultural organization, a board of trade Certa~n organlza- or a chamber of commerce, no part of the tions income of which was payable to, or was other wise available for the personal benefit of, any proprietor, member or shareholder thereof; "(ca) a charitable organization all the resources of Chari~able which were devoted to charitable activities car- ~rog:Sl1lza ried on by the organization itself and no part of the income of which was payable to, or was otherwise available for the personal benefit of, any proprietor, member or shareholder thereof; " (cb) t· rt f th .. f h· h Non-profit a corpora IOn no pa 0 e Income 0 w IC corporatioll was payable to, or was otherwise available for the personal benefit of, any proprietor, mem- ber or shareholder thereof, that has not, since June 1, 1950, acquired control of any other corporation and that, during the period,- "(

i) did not carryon any business; "(ii) had no debts incurred since June 1, 1950, other than obligations arising in respect of salaries, rents and other current operat ing expenses; and " (iii) expended amounts each of which is, "(

A) an expenditure in respect of charit able activities carried on by the cor poration itself; " (

B) a gift to an organization in Canada the income of which for the period is exempt from tax under this Part by virtue of ,clause (ca) ; or "(

c) a gift to a corporation resident in Canada the income of which for the period is exempt from tax under this Part by virtue of this clause; and the aggregate of which is not less than ninety per cent of the corporation's income for the period;"; (

b) by adding immediately after subsection (2) the following new subsection:

When deemed not to have acquired control of another corporation Gifts to be included in income

Section 49 amended Provincial grant to co-operative Application 10 "

(3) For the purpose of

section 21, clause (a), subclause (iii) and subsection (1), clause (cb) of this section,- " (

a) a corporation is controlled by another corpora tion or by a trust if more than fifty per cent of its issued share capital (having full voting rights under all circumstances) belongs to,- "(

i) the other corporation or the trust; or "(ii) the other corporation or the trust and persons with whom the other corporation or the trust does not deal at arms length; but a corporation or trust shall be deemed not to have acquired control of a corporation if it has not purchased (or otherwise acquired for a consideration) any of the shares in the capital stock of that corporation ; and " (

b) there shall be included in computing a corpora tion's or trust's income all gifts received by the corporation or trust other than gifts received subject to a trust or direction that the property given or property substituted therefor, is to be held by the corporation or trust for the purpose of gaining or prod ueing income there from.". 17.

(1) Section 49 is amended,- (

a) by renumbering the

section as subsection (1); (

b) by adding immediately after subsection (1) the following new subsection: "

(2) Where a corporation that was incorporated under provin,cial legislation respecting the estab lishment of co-operative corporations for the pur pose of marketing (including processing incidental thereto or connected therewith) natural products belonging to or acquired from its members or cus tomers, of purchasing supplies, equipment or house hold necessaries for or to be sold to its members or customers or of performing services for its members or customers has received a grant from the Government of a Province that was not fixed by ~eference to natural produ,cts marketed, supplies, eqUIpment or household necessaries purchased or sold or services performed by it,- "(

a) no amount shall be included in respect of the grant in computing the corporation's income for any year; and "(

b) section 19, subsection (4), clause (

h) is not a pplicable in respect of any property in respect of or for the acquisition of which it was received." .

(2) This se,ction is applicable to the 1949 and subsequent taxation years.

11 1'8.

(1) Section 52 is amended by striking out all that

Section 52 t ' d' , 1 ( ) amended por IOn prece lng cause a and by substituting the fol- lowing: "52,.

Where a corporation is an employer and has made Employer's a spedal payment (or payments) on account of an em- ~:~~~~~f~n ployees' superannuation or pension fund or plan in respect of the past services of employees pursuant to a recom mendation by a qualified actuary in whose opinion the resourc~s of the fund or plan required to be augmented by the amount of one or more special payments to ensure that all the obligations of the fund or plan to the employees may oe dis,charged in full and has made the payment so that it is irrevocably vested in or for the fund or plan and the payment has been approved by the Provincial Treasurer, there may be deducted in computing the income for the taxation year the lesser of,-".

(2) This

section is applicable to the 1949 and subsequent Application taxation years. 19.

(1) The following new headings and sections added immediately after

section 52: "Employees Pro·fit Sharing ,Plan. are New sections 52a and 52b "52a.

(1) An amount paid by an employer to a trustee Payments under an employees' profit sharing plan during a taxation ~~~!~yees' year may be ,deducted in computing the employer's income ~~~~l~g plan for the taxatIOn year. deductible , At' I fit h' I' from income "

(2) In thIS c, an emp oyees pro s aring p an "employees means an arrangement under which payments computed by P~Ofi.t reference to its profits from its business are made by a ~l;~!,ng corporation to a trustee in trust for the benefit of officers or employees of the corporation (whether or not payments are also made to the trustee by the officers or employees) and under which the trustee has, since the ·commencement of the plan or the end of 1949, whichever is the later, each year allocated either contingently or absolutely, to individual officers or employees,- "(

a) all amounts received by him from the employer; and " (

b) all profits from the trust property; in such manner that the aggregate of all such amounts and such profits minus such portion thereof as has been paid to beneficiaries under the trust is allocated either contingently or absolutely to officers or employees who are beneficiaries thereunder. "Mining. "5:2b.

(1) In this section,- irot~rpreta "(a) 'minerals' do not include petroleum or natural gas; "minerals" " (b) 'mining property' means a right to prospect, explore "minin t g " or mine for minerals or a property the principal proper y value of which depends upon its mineral content; and

"prospector" Amount not included in income Applicatioll New

section 63a Information return

Section 67 amended Penalty upon conviction 12 " (C) 'prospector' means an individual who prospects or explores for minerals or develops a property for minerals on behalf of himself, on behalf of himself and others or as an employee. "

(2) An amount that would otherwise be included in computing the income for a taxation year of a corporation that has, either under an arrangement with the prospector made before the prospecting, exploration or development work or as employer of the prospe;ctor, advanced money for, or paid part or all of, the expenses of prospe'cting or explor ing for minerals or of developing a property for minerals, shall not be included in computing its income for the year if it is the consideratio.n for,- " (

a) an interest in a mining property acquired under the arrangement under which it made the advance or paid the expenses, or, if the prospector was its employee, acquired by it through the employee's efforts; or " (

b) shares of the capital stock of a corporation re ceived by it in co_nsideration for property described in clause (

a) that it has disposed of to such corpora tion. "

(3) Clause (

b) of subsection (2) does not apply, "(

a) in the case of acorpo.ration that disposed of the shares after carrying on a 'campaign to. sell shares of the corporation to the public; o.r " (

b) to shares acquired by the exercise of an option to purchase shares received as consideratio.n for property described in clause (

a) of subsection (2).".

(2) Sections 52a and 52b are appli~able to the 1949 and subsequent taxation years. 20. The following new

section 63a is added immediately after

section 63: "63a. Whether or not it has filed an info.rmation return as required by a regulation made under

section 56, sub section (1), clause (d), every corporation shall, on demand by registered letter from the Provincial Treasurer, file with in such reasonable time as may be stipulated in the reg istered letter, with the Provincial Treasurer such prescribed information return as is designated in the letter.". 21.

(1) Section 67 is amended,- (

a) by renumbering the

section as subsectio.n (1); (

b) by adding immediately 'aft~r subsection (1) the following new subs~tion: "

(2) Where a corporation has been convicted under this

section of wilfully, in any manner evad ing or attempting to evade, payment of' taxes ~mposed by this Ac~, it is not liable to pay a penalty Imposed under

sectIon 38a for the same evasion or

18 attempt unless it was assessed for that penalty be fore the information or ,complaint giving rise to the conviction was laid or made.".

(2) This

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

Section 71 is amended by adding immediately 'after ~~!~d~Jl subsection (11) the following new subsections: • • Pro~~ "

(12) Every document purportIng to be an order, direct- documents tion, demand, notice, certificate, requirement, decision or assessment over the name in writing of the Provincial Treasurer, the Deputy Provincial Treasurer, or an officer authorized by regulation to exercise the powers or perform the duties of the Provincial Treasurer under this Act, shall be deemed to be a document signed, made 'and issued by the Provincial Treasurer, the Deputy Provincial Treasurer or the officer unless it has been called in question by the Pro- vincial Treasurer or by some person a,cting for him or His Majesty. "

(13) Every form purporting to be a form prescribed or ~;~~:ibed authorized by the Provincial Treasurer shall be deemed to or th . d be a form prescribed by order of the Provincial Treasurer au OrlZC' under this Act unless called in question by the Provincial Treasurer or some person acting for him or for His Maj esty.". o ° d t ·k· t b to

(8) Section 75 23.

SectIon 75 IS amen ed by s rl lng ou su sec Ion amended and by substituting the following: "(8) Subsection (2) of

section 30,

section 55, sections 58 Application to 60 inclusive, sections 63 and 63a,

section 71 except sub- section (4) thereof, and regulations made under ~lause (

e) of subsection (1) of

section 56 are applicable mutatis mutandis in respect of matters arising under The Alberta Corporation Income Tax Act, being

chapter 3 of the Statutes of Alberta, 1947.". 24.

(1) The First

Schedule is amended by adding im- :~~se~ule mediately before the word "income" wherever it occurs the amended word "taxable".

(2) This

section is applicable to the 1949 and subsequent Application taxation years. 25. This Act shall come into force on the day upon which ~oOr~~ng into it is assented to.

No. 57. FOURTH SESSION ELEVENTH LEGISLATURE 15 GEORGE VI 1951 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: 1951 (11th, 4th) Bill 57,

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

Document details

Collection	Alberta — Bills
Citation	L11 S4 6968
Type	bill
Volume / chapter	L11 S4 6968
Language	en
Format	json
Source	PROVINCIAL
Identifier	cde282e86f65ec73995c8ce282e73d59fb847301

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