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TAX STATUTES AMENDMENT ACT, 2017

Bill 15

TAX STATUTES AMENDMENT ACT, 2017

Chapter 15

(Assented to June 7, 2017)

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Alberta, enacts as follows:

Alberta Corporate Tax Act

Amends RSA 2000 cA‑15

1(1)  The Alberta Corporate Tax Act is amended by this section.


(2)  Section 2(5)(a) is amended by adding “of income” before “required to be filed under section 150”.

(3)  Section 4.01(b) is amended by striking out “subsection 79(7)” and substituting “subsections 20(14.2) and 79(7)”.

(4)  Subsection (3) is deemed to have come into force on January 1, 2017.

(5)  Section 14.3(3) is amended by striking out “income tax”.

(6)  Section 16.2(3) is amended by striking out “income tax”.

(7)  Section 22 is amended

                            (a)    in subsection (1)

                                  (i)    in clause (b) by striking out “, as modified by subsections 125(3), (4), (5) and (5.1) of that Act and as adopted by this Act”;

                                 (ii)    by adding the following after clause (e):

                                    (e.1)    “specified corporate income” of a corporation for a taxation year has the meaning assigned to it by subsection 125(7) of the federal Act;

                                (iii)    by adding the following after clause (f):

                                    (f.1)    “specified partnership business limit” of a person for a taxation year has the meaning assigned to it by subsection 125(7) of the federal Act;

                                (iv)    by repealing clause (g) and substituting the following:

                                       (g)    “specified partnership income” of a corporation for a taxation year has the meaning assigned to it by subsection 125(7) of the federal Act;

                                 (v)    by repealing clause (i);

                           (b)    by repealing subsection (2.1293)(c) and substituting the following:

                                 (c)    the proportion of the least of the following amounts that the number of days in the year after March 31, 2009 and before July 1, 2015 bears to the number of days in the year:

                                        (i)    the amount, if any, by which the aggregate of

                                            (A)    the aggregate of all amounts each of which is the income of the corporation for the year from an active business carried on in Canada other than an amount that is

                                                   (I)    described in paragraph (a) of the description of A in the definition of specified partnership income of the corporation in subsection 125(7) of the federal Act as it applies for the purposes of this Act for the year,

                                                  (II)    described in subparagraph (a)(i) of the definition of specified corporate income of the corporation in subsection 125(7) of the federal Act, as it applies for the purposes of this Act for the year, or

                                                 (III)    paid or payable to the corporation by another corporation with which it is associated, that is deemed by subsection 129(6) of the federal Act as it applies for the purposes of this Act to be income for the year from an active business carried on by the corporation in circumstances where the associated corporation is not a Canadian-controlled private corporation, or is a Canadian‑controlled private corporation that has made an election under subsection 256(2) of the federal Act as it applies for the purposes of this Act, in respect of its taxation year in which the amount was paid or payable,

                                            (B)    the specified partnership income of the corporation for the year, and

                                            (C)    the specified corporate income of the corporation for the year

exceeds the aggregate of

                                            (D)    the aggregate of all amounts each of which is a loss of the corporation for the year from an active business carried on in Canada other than a loss of the corporation for the year from a business carried on by it as a member of a partnership, and

                                            (E)    the specified partnership loss of the corporation for the year;

                                      (ii)    the amount, if any, by which the corporation’s taxable income for the year exceeds the aggregate of

                                            (A)    the aggregate of the amounts determined under subparagraphs 125(1)(b)(i) and (ii) of the federal Act as they apply for the purposes of this Act, and

                                            (B)    that part, if any, of the amount taxable in Alberta for the year that is not subject to income tax under this Act;

                                     (iii)    the corporation’s business limit for the year.

                            (c)    by repealing subsection (2.1294)(c) and substituting the following:

                                 (c)    the proportion of the least of the following amounts that the number of days in the year after June 30, 2015 and before January 1, 2017 bears to the number of days in the year:

                                        (i)    the amount determined under subsection (2.1293)(c)(i);

                                      (ii)    the amount determined under subsection (2.1293)(c)(ii);

                                     (iii)    the corporation’s business limit for the year.

                           (d)    by repealing subsection (2.1295)(c) and substituting the following:

                                 (c)    the proportion of the least of the following amounts that the number of days in the year after December 31, 2016 bears to the number of days in the year:

                                        (i)    the amount determined under subsection (2.1293)(c)(i);

                                      (ii)    the amount determined under subsection (2.1293)(c)(ii);

                                     (iii)    the corporation’s business limit for the year.

                            (e)    by adding the following after subsection (3):

(3.1)  Subsections 125(3.2) and (8) of the federal Act apply for the purposes of this section except that where an amount has been assigned

                                 (a)    by a corporation under subsection 125(3.2) of the federal Act, or

                                 (b)    by a person under subsection 125(8) of the federal Act

that amount is deemed to be assigned for the purposes of this section.

(3.2)  If the Minister of National Revenue determines the amount of specified corporate income pursuant to paragraph (b) of the definition of “specified corporate income” in subsection 125(7) of the federal Act, that amount is deemed to be the amount of specified corporate income for the purposes of this section.

                            (f)    in subsection (4) by striking out “and (6)” and substituting “, (6), (6.1), (6.2) and (6.3)”;

                           (g)    by adding the following after subsection (4):

(5)  Subsections 125(3.1) and (9) of the federal Act apply for the purposes of this section.

(6)  Subsection 125(10) of the federal Act applies for the purposes of this section except that

                                 (a)    the reference to clause (1)(a)(i)(B) in that subsection shall be read as a reference to subsection (2.1293)(c)(i)(A)(II) of this section,

                                 (b)    the reference to subparagraph (1)(a)(ii.1) in that subsection shall be read as a reference to subsection (2.1293)(c)(i)(C) of this section,

                                 (c)    the reference to clauses (1)(a)(i)(A) to (C) in that subsection shall be read as a reference to subsection (2.1293)(c)(i)(A)(I) to (III) of this section, and

                                 (d)    the reference to clause (1)(a)(i)(C) in that subsection shall be read as a reference to subsection (2.1293)(c)(i)(A)(III) of this section.

(8)  Subsection (7)(a)(i) to (iv), (b), (c), (d), (e) and (g) apply

                            (a)    to taxation years beginning after March 21, 2016, and

                           (b)    to each taxation year beginning before March 22, 2016 and ending after March 21, 2016 to which paragraph 44(9)(b) of the Budget Implementation Act, 2016, No. 2 (Canada) applies.

(9)  Section 28(1) is amended by striking out “and (2)” and substituting “, (2) and (4.1)”.

(10)  Subsection (9) is deemed to have come into force on January 1, 2017.

(11)  Section 30(1) is amended by adding “, or is deemed to be,” after “if a corporation is”.

(12)  Subsection (11) is deemed to have come into force on January 1, 2017.

(13)  Section 35(3)(e) is repealed.

(14)  Subsection (13) is deemed to have come into force on January 1, 2017.

(15)  Section 36 is amended

                            (a)    in subsection (1.1)(b)(vii) by adding “of income” after “return”;

                           (b)    in subsection (1.2) by adding “of income” after “filed its return”;

                            (c)    in subsection (1.3)

                                  (i)    in clause (a) by adding “of income” after “its return”;

                                 (ii)    in clause (b) by adding “of income” before “filed under Part I”.

(16)  Section 36.1 is amended

                            (a)    by repealing subsection (1) and substituting the following:

Electronic filing of return

36.1(1)  For the purposes of this section, “electronic filing” means using electronic media in a manner specified in writing by the Provincial Minister. 

                           (b)    by adding the following after subsection (2.1):

(2.2)  In this section and section 37.4, “tax preparer”, for a calendar year, means a person, partnership or firm that, in the year, accepts consideration to prepare more than 10 returns, but does not include an employee who prepares returns in the course of performing their duties of employment.

(2.3)  A tax preparer shall file any return prepared by the tax preparer for consideration by way of electronic filing, except that 10 returns may be filed other than by way of electronic filing.

(2.4)  Subsection (2.3) does not apply to a tax preparer for a calendar year in respect of a return

                                 (a)    of a type for which the tax preparer has applied to the Provincial Minister for authority to file by way of electronic filing for the year and for which that authority has not been granted because the tax preparer does not meet the criteria referred to in subsection (2),

                                 (b)    of a prescribed corporation, or

                                 (c)    of a type that the Provincial Minister does not accept by way of electronic filing.

                            (c)    by repealing subsection (3) and substituting the following:

(3)  For the purposes of section 36, where a return of a corporation for a taxation year is filed by way of electronic filing, it is deemed to be a return filed with the Provincial Minister in prescribed form on the day the Provincial Minister acknowledges that the return has been received.

(17)  Subsection (16)(b) applies in respect of returns for taxation years ending after December 31, 2017.

(18)  The following is added after section 37.2:

Failure by corporation to file return
by way of electronic filing

37.3   Every corporation that fails to file a return for a taxation year as required by section 36.1(2.1) is liable to a penalty equal to $1000.

Failure by tax preparer to file return
by way of electronic filing

37.4   Every tax preparer who fails to file a return as required by section 36.1(2.3) is liable to a penalty equal to $100 for each such failure in respect of a return of a corporation.

(19)  Subsection (18) applies in respect of returns for taxation years ending after December 31, 2017.

(20)  Section 45(3) is repealed and the following is substituted:

(3)  At any time after the normal reassessment period, the Provincial Minister may advance an alternative basis or argument, including that all or any portion of the income to which an amount relates was from a different source, in support of all or any portion of the total amount determined on assessment to be payable or remittable by a corporation under this Act unless, on an appeal under this Act,

                                 (a)    there is relevant evidence that the corporation is no longer able to adduce without the permission of the court, and

                                 (b)    it is not appropriate in the circumstances for the court to order that the evidence be adduced.

(21)  Subsection (20) applies to appeals commenced on or after December 31, 2016.

(22)  Section 48 is amended

                            (a)    by adding the following before subsection (1):

(0.1)  For the purposes of this section, “electronic filing” means using electronic media in a manner specified in writing by the Provincial Minister. 

                           (b)    by repealing subsection (2) and substituting the following:

(2)  A notice of objection under this section shall be served by being sent

                                 (a)    by registered letter addressed to the Provincial Minister, or

                                 (b)    by way of electronic filing.

(2.1)  A notice of objection of a corporation for a taxation year that is sent by way of electronic filing is deemed to have been served on the day the Provincial Minister acknowledges that the notice has been received.

                            (c)    in subsection (7) by striking out “by registered letter”.

(23)  The following provisions are amended by striking out “of income”:

section 36.1(2);
section 37(2);
section 43(1) and (1.02)(a)(i);
section 44(2)(a).

Alberta Personal Income Tax Act

Amends RSA 2000 cA‑30

2(1)  The Alberta Personal Income Tax Act is amended by this section.

(2)  Section 16 is amended

                            (a)    in subsection (1) by adding “who is a qualifying student for the year” after “taxation year by an individual”;

                           (b)    by repealing subsection (2);

                            (c)    by repealing subsection (3) and substituting the following:

(3)  Subsections 118.6(1) and (3) of the federal Act apply for the purposes of this Act.

(3)  Section 17 is amended

                            (a)    by repealing subsection (1) and substituting the following:

Unused tuition and education credits

17(1)  In this section, an individual’s unused tuition and education credits at the end of a taxation year are the amount determined by the formula

A + (B – C) – (D + E)

where

                                   A    is the amount determined under this subsection in respect of the individual at the end of the preceding taxation year;

                                   B    is the total of all amounts each of which may be deducted under section 15 or 16 in computing the individual’s tax payable under this Act for the year;

                                   C    is the lesser of the value of B and the amount that would be the individual’s tax payable under this Act for the year if no amount were deductible under this Division (other than an amount deductible under this section and any of sections 8 to 10, 13, 13.1 and 19);

                                   D    is the amount that the individual may deduct under subsection (1.1) for the year;

                                   E    is the tuition and education tax credits transferred for the year by the individual to the individual’s spouse, common‑law partner, parent or grandparent.

                           (b)    by adding the following after subsection (1):

(1.1)  For the purpose of computing an individual’s tax payable under this Act for a taxation year, there may be deducted the lesser of

                                 (a)    the amount determined under subsection (1) in respect of the individual at the end of the preceding taxation year, and

                                 (b)    the amount that would be the individual’s tax payable under this Act for the year if no amount were deductible under this Division other than an amount deductible under this section and any of sections 8 to 10, 13, 13.1 and 19.

                            (c)    in subsections (2) and (3) by striking out “sections 118.5 and 118.6” and substituting “section 118.5”.

(4)  Section 20 is amended

                            (a)    by repealing subsection (1) and substituting the following:

Transfer of tax credits

20(1)  Section 118.8 of the federal Act applies for the purpose of this section except that

                                 (a)    the reference to “tuition tax credit” in the description of A is to be read as “tuition and education credits”, and

                                 (b)    the reference to “section 118.5” in the description of C is to be read as a reference to “sections 15 and 16 of this Act”;

                           (b)    in subsection (1.1)

                                  (i)    by repealing clause (a) and substituting the following:

                                       (a)    the reference to section 118.5 in the description of A is to be read as references to sections 15 and 16 of this Act,

                                 (ii)    by adding “and” at the end of clause (b) and adding the following after clause (b):

                                       (c)    the reference to “tuition tax credit” is to be read as “tuition and education credits” and “is the lesser of” is to be read as “are the lesser of”.

                            (c)    in subsection (2) by adding “except that the reference to “tuition tax credit” is to be read as “tuition and education tax credits” ” after “purposes of this Act”.

(5)  Section 21 is amended by adding “and” at the end of clause (i) and by repealing clauses (j) to (l) and substituting the following:

                            (j)    for the 2017 taxation year and subsequent taxation years

                                  (i)    the reference in paragraph (a) to “21/29” is to be read as “54/359”, and

                                (ii)    the reference in paragraph (b) to “6/11” is to be read as “69/190”.

(6)  Section 24 is amended

                            (a)    in subsection (1) by adding the following after clause (b):

                             (b.1)    “registered leadership contestant” means a person who is a registered leadership contestant under the Election Finances and Contributions Disclosure Act;

                             (b.2)    “registered nomination contestant” means a person who is a registered nomination contestant under the Election Finances and Contributions Disclosure Act;

                           (b)    in subsection (2.1)

                                  (i)    by striking out “or registered candidate” and substituting “, registered candidate, registered leadership contestant or registered nomination contestant”;

                                 (ii)    in clause (a) by adding “, a registered leadership contestant or a registered nomination contestant” after “registered constituency association”;

                            (c)    in subsection (3) by striking out “or registered candidate” and substituting “, registered candidate, registered leadership contestant or registered nomination contestant”.

(7)  Section 35.3(5) is repealed and the following is substituted:

(5)  The amount deemed to have been paid by an eligible individual for a taxation year is nil where the amount in relation to a month specified for the taxation year that would otherwise be deemed by subsection (3) to have been paid on account of the eligible individual’s tax payable under this Act is less than $25.

(8)  Section 85.1(3.1) is amended

                            (a)    by striking out “Subsection (3)” and substituting “Subsection (2)”;

                           (b)    in clause (a) by adding the following after subclause (i):

                              (i.1)    the federal Act as it applies for the purposes of this Act,

(9)  Subsections (2) to (5) are deemed to have come into force on January 1, 2017.

(10)  Subsection (6) applies

                            (a)    to contributions made to a registered leadership contestant on or after January 1, 2017 in respect of a leadership contest commencing after the coming into force of section 17(9) of the Election Finances and Contributions Disclosure Act, and

                           (b)    to contributions made to a registered nomination contestant on or after January 1, 2017.

(11)  Subsection (7) comes into force on July 1, 2017.

Fuel Tax Act

Amends SA 2006 cF‑28.1

3(1)  The Fuel Tax Act is amended by this section.

(2)  Section 38 is amended

                            (a)    by adding the following before subsection (1):

Notice of objection

38(0.1)  For the purposes of this section, “electronic filing” means using electronic media in a manner specified in writing by the Minister.

                           (b)    by repealing subsection (2) and substituting the following:

(2)  A notice of objection under this section must be served by being sent

                                 (a)    by registered mail addressed to the Minister, or

                                 (b)    by way of electronic filing.

                            (c)    by adding the following after subsection (2):

(2.1)  A notice of objection under this section that is sent by way of electronic filing is deemed to have been served on the day that the Minister acknowledges that the notice of objection has been received.

(3)  Section 70 is repealed and the following is substituted:

Waiver or cancellation of penalties

70   Notwithstanding the Financial Administration Act, the Minister may, on application made by a person within 4 years from the end of the calendar year in which a penalty or interest is assessed against the person,

                                 (a)    waive or cancel all or any portion of any penalty or interest payable under this Act by the person, or

                                 (b)    refund all or any portion of any penalty or interest paid under this Act by the person.

Tobacco Tax Act

Amends RSA 2000 cT-4

4(1)  The Tobacco Tax Act is amended by this section.

(2)  Section 11 is amended

                            (a)    by adding the following before subsection (1):

Notice of objection

11(0.1)  For the purposes of this section, “electronic filing” means using electronic media in a manner specified in writing by the Minister.

                           (b)    by repealing subsection (2) and substituting the following:

(2)  A notice of objection under this section must be served by being sent

                                 (a)    by registered letter addressed to the Minister, or

                                 (b)    by way of electronic filing.

                            (c)    by adding the following after subsection (2):

(2.1)  A notice of objection under this section that is sent by way of electronic filing is deemed to have been served on the day that the Minister acknowledges that the notice of objection has been received.

(3)  Section 22.1 is amended

                            (a)    by adding “made” after “application”;

                           (b)    by striking out “4 calendar” and substituting “4”.

Tourism Levy Act

Amends RSA 2000 cT‑5.5

5(1)  The Tourism Levy Act is amended by this section.

(2)  Section 5 is amended by adding the following after subsection (1.2):

(1.3)  If an operator has filed a waiver in a form established by the Minister within 4 years from the end of the calendar year in which a tourism levy became payable and

                                 (a)    the operator has not revoked the waiver, the Minister may, in accordance with the terms of the waiver, assess the amount of the tourism levy payable under this section at any time, or

                                 (b)    the operator has revoked the waiver, the Minister may, in accordance with the terms of the waiver, assess the amount of the tourism levy payable under this section within 6 months after the Minister receives notice of the revocation.

(3)  Section 13.1 is amended

                            (a)    by adding “made” after “application”;

                           (b)    by striking out “4 calendar” and substituting “4”.

(4)  Section 16 is amended

                            (a)    by adding the following before subsection (1):

Notice of objection

16(0.1)  For the purposes of this section, “electronic filing” means using electronic media in a manner specified in writing by the Minister.

                           (b)    by repealing subsection (2) and substituting the following:

(2)  A notice of objection under this section must be served by being sent

                                 (a)    by registered letter addressed to the Minister, or

                                 (b)    by way of electronic filing.

                            (c)    by adding the following after subsection (2):

(2.1)  A notice of objection under this section that is sent by way of electronic filing is deemed to have been served on the day that the Minister acknowledges that the notice of objection has been received.

(5)  The following is added after section 23:

Electronic filing of return

23.1(1)  For the purposes of this section, “electronic filing” means using electronic media in a manner specified in writing by the Minister.

(2)  An operator who meets the criteria specified in writing by the Minister may file a return for a collection period by way of electronic filing.

(3)  A return of an operator for a collection period that is sent by way of electronic filing by an operator referred to in subsection (2) is deemed to have been filed on the day that the Minister acknowledges that the return has been received.