When it comes to Tax preparation and Filing BOMCAS Edmonton and Sherwood Park Accounting and Tax Services have you covered.
The Alberta Indian Tax Exemption (AITE) program consists of:
An exemption from taxes and levies for eligible consumers and bands at the time of purchase on:
fuel products purchased on reserve in Alberta or delivered to reserve
tobacco products purchased on reserve in Alberta
accommodation purchased on reserve in Alberta
A refund of the Alberta fuel tax and carbon levy on fuel to fuel sellers when the fuel is sold or delivered to eligible consumers on reserve in Alberta.
A refund of the Alberta tobacco tax on tobacco products sold by retailers to eligible consumers on reserve in Alberta.
A refund of the Alberta tourism levy to operators that provide accommodation on reserve to eligible consumers.
Information for tobacco wholesalers and fuel suppliers that provide products to registered retailers making tax-exempt sales to eligible consumers.
Definition of the AITE card
The AITE card is issued by Tax and Revenue Administration (TRA) to eligible consumers and bands. This card must be presented to the retailer or accommodation operator at the time of purchase to show the retailer that the fuel, tobacco or accommodation may be sold to the cardholder exempt from tax or levy.
Eligibility
You are an eligible consumer, and may apply for an AITE card, if:
you are an “Indian”, as defined in theIndian Act(Canada), who is 16 years of age or older
you are a “band”, as defined in the Indian Act (Canada), whose reserve is partially or totally located in Alberta
you are a band whose band office is located in Alberta
No incorporated entity is eligible for the AITE program.
Form instructions
Trouble opening or completing fillable PDF forms?
Fillable PDF forms do not open properly on some mobile devices and web browsers. If the form doesn’t open, or you can’t complete the form, or you see a “please wait” message, follow these steps to complete and save fillable forms from Tax and Revenue Administration (TRA):
Right-click on the form link and select “Save Target As” or “Save Link As”, and save the form to your computer.
Launch Adobe Reader.
Open the PDF from within Adobe Reader. You can now fill and save your form.
Electronic signatures allowed
In order to reduce the necessity for taxpayers and tax preparers to meet in person, TRA will recognize electronic signatures. This administrative measure applies to all prescribed forms administered by TRA. To add a digital signature, the form must first be downloaded or opened as a PDF.
Provincial revenue is projected to be $50 billion in 2020-21, or $1 billion lower than forecast in 2019-20.
Revenue is forecast to stay relatively stable in 2021-22 and then grow to $58.1 billion in 2022-23, mainly by increasing income taxes and bitumen royalties.
Table 1: Budget 2020 Revenue (millions of dollars)
Revenue sources
2018-19 Actual
2019-20 Forecast
2020-21 Estimate
2021 Target
2022-23 Target
Income and other Taxes
23,578
21,826
22,887
24,380
25,864
Non-renewable resource revenue
5,429
6,671
5,090
6,705
8,536
Transfers from Government of Canada
8,013
9,054
9,110
9,533
9,784
Investment income
2,349
3,525
2,630
2,889
3,070
Net income from government business enterprises
2,582
2,378
2,357
2,419
2,565
Premiums, fees and licences
3,911
3,947
4,194
4,299
4,407
Other
3,745
3,547
3,711
3,811
3,835
Total revenue
49,607
50,948
49,979
54,036
58,061
Source: Treasury Board and Finance
Non-renewable resource revenue
Non-renewable resource revenue is estimated to decrease due almost entirely to decreased bitumen royalties from a wider light-heavy oil price differential, reflecting more expensive rail transportation costs.
Revenue from non-renewable resources is forecast at $5.1 billion in 2020-21, growing to $8.5 billion by 2022-23.
For more information, see the updated economic and energy price assumptions on the Economic Outlook page.
Table 2: Non-renewable resource revenue (millions of dollars)
Resource revenue
2018-19 Actual
2019-20 Forecast
2020-21 Estimate
2021-22 Target
2022-23 Target
Bitumen royalty
3,214
4,707
3,211
4,492
6,146
Crude oil royalty
1,149
1,228
1,135
1,267
1,302
Natural gas & by-products royalty
536
438
429
597
743
Bonuses & sales of Crown leases
360
133
177
218
223
Rentals and fees/coal royalty
170
164
137
130
122
Total resource revenue
5,429
6,671
5,090
6,705
8,536
Source: Treasury Board and Finance
Income taxes
Tax revenue is forecast to be higher in 2020-21, due to increases in personal income tax, corporate income tax, education property tax and other tax revenue. These are offset by a reduction due to the elimination of the carbon tax.
Tax revenue in 2020-21 is estimated at $22.9 billion, and forecast to reach $25.9 billion by 2022-23.
Personal income tax
Personal income tax revenue is estimated at $12.6 billion in 2020-21, an increase of $747 million, or 6.3% from 2019- 20. Revenue in 2019-20 was $171 million less than the Budget 2019 estimate after revised 2018 assessment data was lower than expected.
The decrease lowers the prior-years’ adjustment to $17 million, which was added to 2019-20 revenue to account for revisions to 2017-19 and 2018-10 revenue already reported in the government’s financial statements. This also reduces the base used to forecast personal income tax revenue for future years, including 2019 and 2020.
Business taxes
Reducing the corporate income tax rate increases competitiveness and attracts investment by reducing the cost of doing business in Alberta, as suggested by the MacKinnon Panel.
Corporate income tax is forecast at $4.5 billion in 2020-21, an increase of $294 million or 7% from 2019-20. Continued growth in corporate income tax is forecast, based on improving oil prices, expanding oil production, achievement of market access as well as growth in manufacturing and exports and rising economic activity.
BOMCAS LTD. Edmonton and Sherwood Park Tax Accounting Service. Feel Free to contact us regards getting your tax completed. One of our accountant will be happy to assist you all the way through. BOMCAS LTD. Income Tax Preparation Service in Edmonton Alberta will be happy to help you. Call us Today You Will Be Happy You Did The rates are based on the following income tax brackets:
Tax Rate
Tax Bracket
10%
Up to $131,220
12%
$131.220.01 to $157,464
13%
$157,464.01 to $209,952
14%
$209,952.01 to $314,928
15%
$314,928.01 and up
Source: Treasury Board and Finance
The dividend tax credit rate for dividends paid out of income taxed at the general corporate income tax rate (eligible dividends) will be adjusted on January 1, 2021, corresponding with the acceleration of the general corporate income tax rate reduction announced June 29, 2020 in Alberta’s Recovery Plan.
Alberta Child and family benefits
Beginning on July 1, 2020, the Alberta Child Benefit (ACB) and the Alberta Family Employment Tax Credit (AFETC) are being consolidated into a single program, the new Alberta Child and Family Benefit (ACFB), with the first payment issued in August 2020. The new ACFB will provide more benefits to lower-income families while streamlining administration. Final payments for the ACB and AFETC programs have already been issued, although the Canada Revenue Agency (CRA) will continue to issue retroactive payments for previous benefit years, if applicable. Households who previously received the AFETC will no longer receive a payment in July, as those that qualify will now receive one combined quarterly ACFB benefit payment starting in August.
Alberta Commonly used forms
Alberta’s personal income tax system is administered by the Canada Revenue Agency (CRA). The following forms are commonly used and are available from the CRA:
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Find Below information regards corporation tax for Alberta.
Small business deduction Alberta
Canadian-controlled private corporations not in an associated group may claim a small business deduction on active business income (i.e., non-investment income), up to the small business threshold of $500,000. Canadian-controlled private corporations in an associated group share the maximum small business threshold.
Alberta’s Scientific Research and Experimental Development Tax Credit (SR&ED) program provides a refundable tax credit to corporations for SR&ED expenditures carried out in Alberta by the corporations.
For taxation years ending on or before March 31, 2012. This form has been developed for calculating the Grind. Claimants are to use it with AT1 Schedule 9.
A corporation may be entitled to claim an Alberta Foreign Investment Income Tax Credit if it received foreign investment income and is entitled to claim a foreign tax credit under the federal Act relating to foreign income or profits tax paid on income from foreign non-business sources. Foreign investment income is income earned outside Canada that is not reasonably attributable to the carrying on of the corporation’s business. See the following schedule:
Unless it is exempt, a corporation is required to file an Alberta corporate income tax return (AT1) if it had a permanent establishment in Alberta at any time during the taxation year.
Using certified software, taxpayers or service providers can use net file to electronically submit an Alberta corporate income tax return, including reassessments or amended returns. Net file provides the user with immediate receipt confirmation, faster processing and the convenience of filing from anywhere.
There is no access code or registration required.
Net file is available Monday to Saturday, 07:00 to 24:00 MST and on Sunday 17:30 to 24:00 MST.
Net file eligibility
To file a corporate income tax return (AT1) using net file, the corporation must meet all of the following criteria:
For returns for taxation years ending after December 31, 2017, any corporation whose gross revenue exceeds $1 million is required to net file its Alberta AT1 Returns.
The following are exceptions where the corporation is not required to net file:
an insurance corporation defined in subsection 248(1) of the federal Income Tax Act,
a non-resident corporation,
a corporation reporting in functional currency as defined in subsection 261(1) of the federal Income Tax Act, or
For returns for taxation years ending after December 31, 2017, a tax preparer is required to net file AT1 Returns in circumstances where the tax preparer accepts consideration to prepare more than 10 returns.
The following are exceptions where the tax preparer is not required to net file:
a type of return for which the tax preparer has applied for and received permission from TRA to file by another method,
a type of return that TRA does not accept by electronic filing, or
a return for the following types of corporations:
an insurance corporation defined in subsection 248(1) of the federal Income Tax Act,
a non-resident corporation, or
a corporation reporting in functional currency as defined in subsection 261(1) of the federal Income Tax Act.
Net file certified software
The return must be generated and submitted using TRA-certified tax return preparation software.
Refer to each software product for specific system requirements, instructions, and procedures on preparation and submission of returns in net file format.
submit your completed return and applicable schedules to TRA
How to pay
If you have a February tax year end with an amount owing, instruct the payment to be applied to the same tax year end date on your tax return. For example, if your Tax Year End Date is February 29, 2020, ensure that the payment is instructed to be applied to February 29, 2020 as well.
Remittance due dates
Instalment payments are due the last day of each month, and the remaining balance, if any, is due as follows. If the due date falls on a weekend or holiday, then the due date is the next business date.
Canadian Controlled Private Corporations (CCPCs)
on or before end of the third month following the taxation year
Other corporations
on or before the end of the second month following the taxation year
CCPCs exempt from instalments
total tax is due by the end of the third month following the taxation year end
Other corporations exempt from instalments
total tax due by the end of second month following the taxation year end
TRA Client Self-Service (TRACS) is a secure online system for authorized clients to conveniently conduct business with TRA. You can do the following tasks in TRACS:
confirm receipt and completion of submitted returns
view status of prior assessments, financial details and notices of assessment and reassessment
access financial information and view account period balances
update address and contact information
delegate account access to other employees or authorized individuals
set up direct deposit for corporate income tax refunds
For more details, instructional videos and to log in to your TRACS account, see TRACS information.
How to apply for direct deposit Alberta
Direct deposit is a convenient, reliable, and secure way to receive a refund from TRA.
Step 1: Register for TRACS (TRA Client Self-Service)
These documents discuss procedural matters and administrative policies and practices for programs administered by TRA. They are updated as necessary and a revision number assigned.
These documents explain legislation and provide specific information related to Alberta Corporate Income Tax. Interpretation bulletins are updated as necessary and a revision number assigned.
These documents are used to announce changes to the legislation administered by TRA, or changes to administrative policies and practices carried out by TRA. These notices are time-specific, and meant to be transitory in nature. The information may eventually be incorporated into other publications, such as information circulars or web content.
Fillable PDF forms do not open properly on some mobile devices and web browsers. If the form doesn’t open, or you can’t complete the form, or you see a “please wait” message, follow these steps to complete and save fillable forms from Tax and Revenue Administration (TRA):
Right-click on the form link and select “Save Target As” or “Save Link As”, and save the form to your computer.
Launch Adobe Reader.
Open the PDF from within Adobe Reader. You can now fill and save your form.
Electronic signatures allowed
In order to reduce the necessity for taxpayers and tax preparers to meet in person, TRA will recognize electronic signatures. This administrative measure applies to all prescribed forms administered by TRA. To add a digital signature, the form must first be downloaded or opened as a PDF.
For taxation years ending on or before March 31, 2012. This form has been developed for calculating the Grind. Claimants are to use it with AT1 Schedule 9.
