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Tax and Revenue Administration
Alberta Corporate Tax Act
Special Notice Vol. 5 No.
31


Released: February 10, 2010; amended April 28, 2010
Produced by: Alberta Treasury Board and Finance, Tax and Revenue Administration
For more information: tra.revenue@gov.ab.ca

Vol. 5 No. 31 / February 2010; amended April 28, 2010

ALBERTA CORPORATE TAX ACT SPECIAL NOTICE:
Refund Interest Rate Reduction

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.

Effective 12:01 a.m. February 10, 2010, the quarterly rates used to calculate refund interest will be reduced by 50 per cent. The reduced rates apply to assessments and reassessments issued after that time for all taxation years.

The calculation of refund interest assessed on or before February 9, 2010 will not change unless the amount of tax payable for that taxation year is reassessed after that date. In this case, refund interest will be recalculated and excess amounts received, based on the difference between the old and new interest rates, will have to be repaid.

Click here for Questions and answers relating to this change.

Contact Tax and Revenue Administration if you have questions about how interest is calculated and how the reduced interest rates are applied.

Corporations may want to consider the potential impact of taxpayer-requested adjustments, such as amended returns or loss carry-backs before requesting such adjustments from TRA. For example, the application of a loss carry-back to a year where a refund of tax was previously paid to the corporation could potentially generate an amount payable by the corporation. This would be due to the re-calculation of refund interest on reassessment using the reduced rates outlined above.

TRA will process requested adjustments as necessary without considering the potential impact of the change in refund interest rates.

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