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(Consolidated up to 280/2009)
ALBERTA REGULATION 119/2008
Alberta Corporate Tax Act
ALBERTA CORPORATE TAX REGULATION
Table of Contents
1 Definitions
2 Taxable income earned in Alberta
3 Prescribed leases
4 Election under s26(1.7)(b) of the Act
5 Specified rates
5.1 Alberta SR&ED tax credit
6 Retention period of records and books
7 Interest rates
7.1 Conversion to Canadian currency
8 Consequential
9 Repeal
Definitions
1 In this Regulation,
(a) “Act” means the Alberta Corporate Tax Act;
(b) “federal regulations” means the regulations made under the Income Tax Act (Canada).
Taxable income earned in Alberta
2(1) For the purpose of section 19(2) of the Act, Part IV of the federal regulations applies for the purpose of determining “taxable income earned in Alberta” except that
(a) with respect to subsection 404(1) of the federal regulations
(i) if the aggregate of salaries and wages paid in the year by the bank is nil, the amount of taxable income that shall be deemed to have been earned by the bank in the year in Alberta is that proportion of its taxable income for the year that the aggregate amount of loans and deposits of its permanent establishment in Alberta for the year is of the aggregate amount of all loans and deposits of the bank for the year, or
(ii) if the aggregate amount of loans and deposits of the bank for the year is nil, the amount of taxable income that shall be deemed to have been earned by the bank in the year in Alberta is that proportion of its taxable income for the year that the aggregate of its salaries and wages paid in the year by the bank to employees of its permanent establishment in Alberta is of the aggregate of all salaries and wages paid in the year by the bank;
(b) with respect to subsection 406(1) of the federal regulations
(i) if the equated track miles of the corporation for the year is nil, the amount of taxable income that shall be deemed to have been earned by the corporation in the year in Alberta is that proportion of its taxable income for the year that the gross ton miles of the corporation for the year in Alberta is of the gross ton miles of the corporation for the year in Canada, or
(ii) if the gross ton miles of the corporation for the year is nil, the amount of taxable income that shall be deemed to have been earned by the corporation in the year in Alberta is that proportion of its taxable income for the year that the equated track miles of the corporation in Alberta is of the equated track miles of the corporation in Canada;
(c) with respect to subsection 407(1) of the federal regulations
(i) if the number of revenue plane miles flown by its aircraft in Canada during the year is nil, the amount of taxable income that shall be deemed to have been earned by the corporation in the year in Alberta is that proportion of its taxable income for the year that the capital cost of all the corporation’s fixed assets, except aircraft, in Alberta at the end of the year is of the capital cost of all its fixed assets, except aircraft, in Canada at the end of the year, or
(ii) if the capital cost of all the corporation’s fixed assets, except aircraft, in Canada at the end of the year is nil, the amount of taxable income that shall be deemed to have been earned by the corporation in the year in Alberta is that proportion of its taxable income for the year that the number of revenue plane miles flown by its aircraft in Alberta during the year is of the total number of revenue plane miles flown by its aircraft in Canada during the year other than miles flown in a province in which the corporation had no permanent establishment;
(d) with respect to section 408 of the federal regulations
(i) if the aggregate of salaries and wages paid in the year by the corporation is nil, the amount of taxable income that shall be deemed to have been earned by the corporation in the year in Alberta is that proportion of its taxable income for the year that the number of bushels of grain received in the year in the elevators operated by the corporation in Alberta is of the total number of bushels of grain received in the year in all the elevators operated by the corporation, or
(ii) if the total number of bushels of grain received in the year in all the elevators operated by the corporation is nil, the amount of taxable income that shall be deemed to have been earned by the corporation in the year in Alberta is that proportion of its taxable income for the year that the aggregate of salaries and wages paid in the year by the corporation to employees of its permanent establishment in Alberta is of the aggregate of all salaries and wages paid in the year by the corporation;
(e) with respect to section 409 of the federal regulations
(i) if the aggregate of salaries and wages paid in the year by the corporation is nil, the amount of taxable income that shall be deemed to have been earned by the corporation in the year in Alberta is that proportion of its taxable income for the year that the number of kilometres driven by the corporation’s vehicles, whether owned or leased, on roads in Alberta in the year is of the total number of kilometres driven by those vehicles in the year on roads other than roads in provinces or countries in which the corporation had no permanent establishment, or
(ii) if the number of kilometres driven by the corporation’s vehicles, whether owned or leased, in the year is nil, the amount of taxable income that shall be deemed to have been earned by the corporation in the year in Alberta is that proportion of its taxable income for the year that the aggregate of salaries and wages paid in the year by the corporation to employees of its permanent establishment in Alberta is of the aggregate of all salaries and wages paid in the year by the corporation;
(f) with respect to section 411 of the federal regulations
(i) if the aggregate of salaries and wages paid in the year by the corporation is nil, the amount of taxable income that shall be deemed to have been earned by the corporation in the year in Alberta is that proportion of its taxable income for the year that the number of miles of pipeline of the corporation in Alberta is of the number of miles of pipeline of the corporation in all the provinces in which the corporation had a permanent establishment, or
(ii) if the number of miles of pipeline of the corporation in the year is nil, the amount of taxable income that shall be deemed to have been earned by the corporation in the year in Alberta is that proportion of its taxable income for the year that the aggregate of salaries and wages paid in the year by the corporation to employees of its permanent establishment in Alberta is of the aggregate of all salaries and wages paid in the year by the corporation to employees of its permanent establishments in Canada.
(2) When a corporation is not resident in Canada, subsection 413(1) of the federal regulations shall be read as if “taxable income earned in Canada as determined under section 115 of the Act” were replaced with “taxable income earned in Canada as determined under section 17.1 of the Alberta Corporate Tax Act”.
(2.1) In this section and in the application of Part IV of the federal regulations, “permanent establishment” means permanent establishment as defined in the Act.
(3) This section comes into force on the coming into force of section 3(a) of the Alberta Corporate Tax Amendment Act, 2007.
AR 119/2008 s2;280/2009
Prescribed leases
3 For the purposes of sections 26(1)(e.1)(ii) and 106(1)(c.1)(ii) of the Act, the following are prescribed leases:
7184100 257
7184100 258
7185050 264
7185070 269
7185070 270
7185070 271
7185080 275
7185080 276
7185090 278
7186020 283
7186020 284
7186030 289
7186040 298
7186060 304
7186060 305
7186070 306
7186120 314
7187040 321
Election under s26(1.7)(b) of the Act
4 An election under section 26(1.7)(b) of the Act shall be made on or before the day that is the earliest of the days on or before which
(a) the purchaser,
(b) the vendor, or
(c) a corporation associated with the vendor
is required to file a return of income pursuant to section 36(1) of the Act for the taxation year in which the acquisition to which the election relates occurred.
Specified rates
5(1) In this section, “period”, with respect to a year, means any of the following:
(a) the period beginning on January 1 and ending on March 31;
(b) the period beginning on April 1 and ending on June 30;
(c) the period beginning on July 1 and ending on September 30;
(d) the period beginning on October 1 and ending on December 31.
(2) For the purpose of subsections (3) and (4), the specified rate for a period is as follows:
(a) for a period after December 31, 1994 and before April 1, 2000, as set out in the following Table:
Table
|
Quarter |
1995 |
1996 |
1997 |
1998 |
1999 |
2000 |
|
January 1 to March 31 |
73.56% |
74.28% |
70.55% |
65.83% |
73.64% |
28.40% |
|
April 1 to June 30 |
73.47% |
73.62% |
40.40% |
64.22% |
73.30% |
|
|
July 1 to September 30 |
73.72% |
70.33% |
63.80% |
73.54% |
73.31% |
|
|
October 1 to December 31 |
74.23% |
73.05% |
70.65% |
73.68% |
55.29% |
|
(b) for a period after March 31, 2000 and before January 1, 2009, 25%.
(3) For the purpose of sections 26(1)(i) and 106(1)(g) of the Act, the weighted average rate for a taxation year is the aggregate of the amounts that are the product obtained when the specified rate for a period, all or part of which falls in the taxation year, is multiplied by the proportion that the number of days in the taxation year that are in that period is of the total number of days in the taxation year.
(4) For the purpose of sections 26.4(1) and 112(1) of the Act, the moving average of the specified rates at the end of a particular month in a taxation year is the aggregate of the amounts that are the product obtained when the specified rate for a period, all or part of which falls in the taxation year on or before the end of the month, is multiplied by the proportion that the number of days in the period to the end of the month is of the number of days in the taxation year to the end of the month.
Alberta SR&ED tax credit
5.1(1) For the purpose of section 26.6(1)(h) of the Act, the prescribed corporations are those that are subject to any of the following regulations:
(a) Payment in Lieu of Tax Regulation (AR 112/2003);
(b) City of Medicine Hat Payment in Lieu of Tax Regulation (AR 235/2003);
(c) ABC Benefits Corporation Regulation (AR 272/96).
(2) For the purposes of section 41(1.01) of the Act, the time after which the Provincial Minister may determine the amount of the Alberta SR&ED tax credit to which the corporation is entitled is the later of
(a) the date the Provincial Minister receives the corporation’s Alberta SR&ED tax credit claim for the taxation year in the prescribed form, and
(b) the earlier of
(i) the date the federal Minister confirms to the Provincial Minister the amount of federal expenditures of the corporation allowed for federal investment tax credit purposes for the taxation year, and
(ii) the date the Provincial Minister receives a copy of the federal notice of the federal notice of assessment or notification, which relates to the amount of federal expenditures of the corporation allowed for federal investment tax credit purposes for the taxation year and all relevant supporting documentation.
AR 280/2009 s3
Retention period of records and books
6 Subsection 5800(1) of the federal regulations applies for the purpose of prescribing the retention periods for records and books of account required to be retained under section 61(3)(a) of the Act.
Interest rates
7 Part XLIII of the federal regulations applies for the purpose of prescribing the interest rate under any section of the Act requiring a prescribed interest rate, except that
(a) the reference to “Receiver General” in paragraph 4301(a) of the federal regulations shall be read as a reference to “Provincial Minister”,
(b) subparagraph 4301(a)(ii) of the federal regulations shall be read as “3.5 per cent”, and
(c) subparagraph 4301(b)(ii) of the federal regulations shall be read as “0.0 per cent”.
Conversion to Canadian currency
7.1(1) For the purposes of section 4.01(c) of the Act, the corporation’s taxes payable for the a taxation year must be converted to Canadian dollars using the average exchange rate for the taxation year.
(2) The average exchange rate for the taxation year is the average of the rate of exchange quoted by the Bank of Canada at noon on each business day in the taxation year for the exchange of a unit of the particular currency for a unit of Canadian currency.
AR 280/2009 s4
Consequential
8 The Regulations Act Regulation (AR 288/99) is amended by repealing section 17(1)(t).
Repeal
9 The Alberta Corporate Tax Regulation (AR 105/81) is repealed.
