Tax Statutes Amendment Act, 2023 ($)

Summary#

• This bill updates several Alberta tax laws. It focuses on corporate taxes, personal income taxes, fuel taxes, and the tourism levy.
• The main goals are to align with federal rules, tighten anti-avoidance tools, make filing more digital, extend temporary fuel tax relief in 2023, and make online booking platforms collect the tourism levy.

Key changes

• Corporations: Aligns Alberta rules with federal “accelerated write-off” for certain business investments (back to April 19, 2021). Updates how the Innovation Employment Grant is calculated, especially for related companies.
• Filing and audits: More corporate tax returns must be filed electronically by paid preparers. Audit powers are clarified and broadened. Government can post official notices to a secure online account (from 2025).
• Anti-avoidance: Expands definitions of “tax benefit” and “tax consequences,” giving the province clearer tools to address tax avoidance (applies mainly to transactions on or after April 7, 2022).
• Personal income tax: Eases the disability credit therapy rule (from 3 times to 2 times per week, still averaging 14 hours) back to 2021. Adjusts trust tax rules to better match federal law.
• Fuel: Extends the $0.00 per litre provincial fuel tax on gasoline and diesel through December 31, 2023 (retroactive).
• Tourism levy: Requires online marketplaces (like booking platforms) to collect and remit the tourism levy on short-term stays, with options for platforms and hosts to agree on who files. Some details apply retroactive to July 1, 2023; others take effect later by regulation.

What it means for you#

• Drivers

  • Gasoline and diesel in Alberta stayed cheaper through the end of 2023 because the provincial fuel tax was set to $0.00 per litre for the whole year.

• Travelers and guests

  • When you book accommodation through an online marketplace, the platform will usually add the tourism levy at checkout and send it to the government.

• Short‑term rental hosts and hotels

  • If your bookings go through a registered online marketplace that collects the levy, you may not need to register separately for the levy.
  • If you and the platform agree (and the Minister allows), you may take on some filing duties instead of the platform. Both parties can still be on the hook if the levy is not handled properly.

• Online marketplaces (booking platforms)

  • Must register, collect, and remit the tourism levy on Alberta stays booked through your site, unless specific exceptions apply. The province may publish your registered name and marketplace brands.

• People with disabilities and families

  • It is easier to qualify for the disability tax credit if your therapy is required at least 2 times per week (still averaging 14 hours), rather than 3 times (applies back to 2021).

• Trusts and estates

  • Alberta updates trust tax formulas to better match federal rules, which may prevent double counting and make taxes more predictable (mainly after late 2023).

• Corporations and startups

  • If you claimed certain fast write-offs for investments under federal rules, you must claim them the same way in Alberta (back to April 19, 2021).
  • The Innovation Employment Grant calculation changes for companies linked by common ownership. New rules set how related companies share eligible spending for the grant (applies back to 2021).

• Tax preparers and corporations

  • If you are a paid preparer who files more than 5 corporate returns in a year, you must file them electronically (with up to 5 exceptions) starting in 2024.
  • Audit rules are broader. Officials can request help, documents, and answers (including by video or in writing). A warrant is still required to enter a home without consent.
  • From 2025, official notices can be posted to a secure online account and will be treated as received on the posting date, unless mail was requested in advance.

Expenses#

Estimated impact at a glance: extends 2023 fuel tax relief (lower revenue), improves tourism levy collection (higher compliance), and small admin costs for new filing and audit rules.

• Fuel tax holiday: Extending the $0.00 per litre rate on gasoline and diesel through Dec 31, 2023 reduced provincial fuel tax revenue in the second half of 2023.
• Tourism levy: Having platforms collect at checkout likely increases compliance and steadies revenues from short-term stays.
• Corporate and trust changes: Mainly technical alignments; fiscal impact likely limited and mixed (some increased compliance, some clarified credits).
• Administration: Small costs to implement e-filing, secure online notices, and expanded audit processes; offset in part by efficiency gains.
• Exact figures: No publicly available information.

Proponents' View#

• Helps with affordability by keeping fuel prices lower for the rest of 2023.
• Aligns Alberta with federal tax rules, making filing simpler and reducing confusion.
• Tightens tools against tax avoidance, protecting the tax base and fairness.
• Makes online platforms collect the tourism levy, which is easier for guests and boosts compliance.
• Eases access to the disability tax credit for people who need frequent therapy.
• Moves more filing online, cutting paper, errors, and processing time.

Opponents' View#

• Extending the fuel tax holiday lowers government revenue that could fund services or infrastructure.
• Retroactive tax changes can create uncertainty for businesses and tax filers.
• Broader audit and anti-avoidance powers may worry businesses about compliance burden and discretion.
• Joint liability for platforms and hosts could be complex, especially for small operators.
• Publishing information about registered platforms raises privacy and administrative concerns.
• More mandatory e-filing may burden small preparers with new software and costs.