Canadian Tax Adviser, June 07, 2016 Alberta Bill 20, which contains proposed legislation to enact certain measures announced in Alberta's 2016 budget, received first reading on May 24, 2016. Bill 20 is considered to be substantively enacted for purposes of IFRS and Accounting Standards for Private Enterprise (ASPE) as of May 24, 2016, when Bill 20 received first reading in the provincial legislature (as Alberta has a majority government).
While the bulk of Bill 20 contains proposed legislation to introduce a carbon levy starting on January 1, 2017, it also contains proposed amendments to the Alberta Corporate Tax Act and the Alberta Personal Income Tax Act.
Bill 20 contains legislation to amend the Alberta Corporate Tax Act to reduce Alberta's small business corporate income tax rate by one third, from 3% to 2%, effective January 1, 2017. Alberta has stated that this measure is intended to help businesses adjust to the carbon levy.
The bill also contains legislation to amend the Alberta Personal Income Tax Act, to add a carbon rebate for certain lower and middle income individuals (the Alberta Climate Leadership Adjustment Rebate) as a refundable tax credit for the purposes of that Act.
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Information is current to June 07, 2016. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500