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Tax and Revenue Administration
Alberta Corporate Tax Act
Information Circular CT-19R2


Last Reviewed: April 2010
Produced by: Alberta Treasury Board and Finance, Tax and Revenue Administration
For more information: tra.revenue@gov.ab.ca

CT-19R2 / April 2010

ALBERTA CORPORATE TAX ACT INFORMATION CIRCULAR:
ALBERTA POLITICAL CONTRIBUTIONS TAX CREDIT

NOTE: This information circular 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 Information Circular and governing legislation, the legislation takes precedence.

This information circular discusses the Alberta Political Contributions Tax Credit available to corporations. The topics discussed include:  

OVERVIEW OF THE TAX CREDIT

  1. The political contributions tax credit, legislated in section 24 of the Alberta Corporate Tax Act, is a non-refundable tax credit on certain political contributions that may be claimed by corporations against tax payable after claiming the small business deduction and the foreign investment income tax credit.  (See form AT1 – Schedule 8.)

  2. The political contributions tax credit must be claimed in the taxation year the eligible political contribution was made.  There is no provision to carry back or forward any unused political contributions tax credit.

ELIGIBLE POLITICAL CONTRIBUTIONS

  1. Contributions to:

    • an Alberta candidate;
    • an Alberta constituency association; or
    • an Alberta political party

are eligible for calculating the Alberta political contributions tax credit, if the candidate, constituency association or political party is registered under the Election Finances and Contributions Disclosure Act.

  1. Certain contributions made relating to an election under the Senatorial Selection Act are also eligible for calculating the political contributions tax credit.  These include contributions made to a:

    1. registered party that has nominated a candidate under the Senatorial Selection Act, or
    2. person registered as a candidate under the Senatorial Selection Act.  

  2. The contributions must conform to the standards of the Election Finance and Contributions Disclosure Act which sets dollar limits and timing restrictions on political contributions.  Under this Act, corporations associated under subsection 256(1) of the federal Income Tax Act at the time the contributions are made (as opposed to at any time in the year) are considered to be a single corporation.

  3. If a corporation is in a partnership that has made contributions eligible for the Alberta political tax credit, the corporation’s eligible tax credit will be based on the corporation’s share of any amount contributed by the partnership and considered made by the corporation in the taxation year of the corporation in which the partnership’s fiscal period ended.

  4. Contributions to a federal or municipal candidate or a federal political party are not eligible for calculating the Alberta political contribution tax credit.

CALCULATION OF THE TAX CREDIT

  1. Complete AT1 Schedule 8 to claim the political contributions tax credit.  List all contributions to a registered candidate, constituency office or party on the form.  Add the amounts listed to determine the total amount of contributions.

  2. List all eligible contributions in respect of an election under the Senatorial Selection Act.  Add the amounts listed to determine the total amount of senatorial election contributions.

  3. For eligible contributions made on or after January 1, 2004, the tax credit for contribution to a registered candidate, constituency office or party is calculated as the total of:
    • 75 per cent of the first $200 of eligible contributions,
    • 50 per cent of the next $900 of eligible contributions, and
    • 33 1/3 per cent of eligible contributions greater than $1100

up to a maximum of $1000.

  1. For eligible contributions made on or after January 1, 2004, the credit for eligible contributions in respect of senatorial elections is calculated as the total of:
    • 75 per cent of the first $200 of eligible contributions,
    • 50 per cent of the next $900 of eligible contributions, and
    • 33 1/3 per cent of eligible contributions greater than $1100

up to a maximum of $1000.

  1. Do not send official receipts along with the AT1 Schedule 8, but keep them and, if requested, make them available to TRA.  Also keep and have available a copy of federal form T5013 to verify the corporation’s proportionate share of eligible contributions made by a partnership.

CONTACT

  1. For more information about the Alberta political tax credit, contact Tax and Revenue Administration
    • by telephone at 780-427-3044 or 310-0000-780-427-3044 (Alberta toll-free),
    • fax at 780-422-3770, or
    • by e-mail at tra.revenue@gov.ab.ca.
  1. For inquiries about the interpretation and application of the Election Finances and Contributions Disclosure Act contact:

    THE OFFICE OF THE CHIEF ELECTORAL OFFICER
    100 11510 KINGSWAY AVE
    EDMONTON AB T5G 2Y5
    780-427-7191



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