and Revenue Administration
Corporate Tax Act
Special Notice Vol. 5 No. 49
||July 11, 2018
||Alberta Treasury Board and Finance, Tax and
|For more information:
5 No. 49 / July 2018
TAX STATUTES AMENDMENT ACT, 2018
NOTE: This special notice is intended to explain legislation and provide specific information. Every effort has been made to ensure the contents are accurate. However, if a discrepancy should occur in interpretation between this special notice and governing legislation, the legislation takes precedence.
Bill 15, Tax Statutes Amendment Act, 2018, received Royal Assent on June 11, 2018. The bill included various amendments to the Alberta Corporate Tax Act (the Act). The more significant changes are explained below.
Repeal of Political Contributions Tax Credit
Section 24 of the Act has been repealed to eliminate the Alberta Political Contributions Tax Credit. This section formerly provided for a tax credit in respect of eligible contributions made pursuant to the Election Finances and Contributions Disclosure Act, which was amended effective June 15, 2015 to prohibit corporations from making such contributions.
Demand of Returns
Section 71 of the Act empowers the President of Treasury Board and Minister of Finance (the Minister) to demand the filing of any prescribed information or return designated in the demand. Similarly, section 89(2) of the Act empowers the Minister to demand the filing of an insurance premiums tax return required under Part 9 of the Act.
Sections 71 and 89(2) have been amended to broaden the methods by which the Minister may serve such demands beyond personal service and registered mail. Effective June 11, 2018, the Minister may send such demands by regular mail or electronically through a taxpayer’s secure tax account.
Federal Bill C-44 Amendments Paralleled by Alberta
The Act has been amended to parallel an amendment to the Income Tax Act (Canada) passed by the federal government as part of Bill C-44, An Act to Implement Certain Provisions of the Budget Tabled in Parliament on March 22, 2017 and Other Measures, which received Royal Assent on June 22, 2017. In general, Alberta parallels federal effective dates for technical amendments in order to remain consistent with the dates that corporations would have made the respective reporting changes.
In particular, section 35 of the Act has been amended to eliminate the tax exemption for insurers of farming and fishing property. Consistent with the repeal of the comparable federal exemption, the changes to section 35 of the Act apply to taxation years that begin after December 31, 2018.