Vol. 5 No. 27 / February 2009 ALBERTA
CORPORATE TAX ACT SPECIAL NOTICE: 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 48 – the Alberta Corporate Tax Amendment Act 2008 (Amendment Act) received Royal Assent on December 2, 2008. The Amendment Act includes the requirement to pay an over-integration tax. This would have occurred when a corporation paid eligible dividends out of income earned after 2008 that qualified for the Alberta small business deduction, when the Alberta business income threshold was higher than the federal threshold. However, in the federal budget announced on January 27, 2009, the federal business limit was increased to $500,000, effective January 1, 2009. The Alberta threshold for 2009 is $460,000 from January 1 to March 31 and $500,000 for the remainder of the year. As the Alberta threshold is lower than, or equal to, the federal threshold for the year, corporations will not have to make an over-integration tax adjustment for the 2009 calendar year. No changes to the Alberta Corporate Income Tax return for over-integration tax will be introduced at this time.
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