Tax and Revenue Administration Alberta Corporate Tax Act Special Notice Vol. 5 No. 30

Vol. 5 No. 30 / December 2009

ALBERTA CORPORATE TAX ACT SPECIAL NOTICE:
Alberta Corporate Tax Amendment Regulation

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.

The Alberta Corporate Tax Amendment Regulation (the Regulation)was approved by Cabinet on October 14, 2009.  The Regulation provides for the following:

Scientific Research and Experimental Development (SR&ED)

• Alberta SR&ED claims do not have to be processed until after the federal claim is assessed.
  
  
• The Regulation allows Payment in Lieu of Tax (PILOT) filers to claim SR&ED.

• Changes related to SR&ED are effective January 1, 2009.

Functional Currency

• The currency conversion method for taxes payable by functional currency filers is set as the average exchange rate for the taxation year, and
  
  
• 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.
  
  
• Changes related to functional currency are effective for taxation years that begin after December 13, 2007.