News Archive 2006

News from Alberta Finance

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December 2006

Tax Notes - December 2006 Issue
December 22, 2006

The December 2006 issue of Tax Notes has been published online. Here are some of the articles you'll find:

  • the key issues to be addressed in the new Fuel Tax Regulations
    Alberta's new IFTA fees
  • Alberta Farm Fuel Benefit program changes - where to get more information
  • changes to the royalty tax credit programs
  • tax avoidance schemes...

... and more. Check it out.  (Please note:  you may also subscribe to receive this publication in your inbox.)

Alberta Personal Income Tax calculator updated for 2006
December 22, 2006

Our Tax Calculator has been updated for the 2006 tax year.  The tax calculator is intended to give you an estimate of your potential taxes at year-end, based on the limited information you provide and the assumptions set out on the tax calculator web site.  The tax calculator cannot give you an accurate or official assessment of your 2006 tax liability.

Alberta Population Report - 3rd Quarter, 2006
December 22, 2006

The Alberta Population Report for the 3rd Quarter of 2006 (pdf) has been added to the Demographic Information page.

Prescribed Interest Rates
December 20, 2006

Tax and Revenue Administration has posted the prescribed interest rates and debit interest rate for International Fuel Tax Agreement purposes for the first quarter of 2007.

Pension Publications Updated
December 20, 2006

Financial Hardship Application Form and Instructions updated
December 11, 2006

The Financial Hardship Application Form and the Instructions and Policies, under section 41.1 of the Employment Pension Plans Regulation, has been amended to reflect legislative changes effective August 10, 2006, and to provide additional clarification related to the program requirements.

Pension Publications Update
December 4, 2006

  • Policy Bulletin #2 is updated to indicate that Trust documents submitted for filing with the Superintendent must be drafted in accordance with the laws of Alberta - December 4, 2006.
  • Policy Bulletin #11 is amended to clarify that where one LIF is transferred to another LIF, the payment schedule established under that first LIF is to continue after the transfer - December 4, 2006.
  • Policy Bulletin #13 has removed the minimum 2% contribution requirement. The bulletin is amended to reflect the CRA minimum contribution requirement - December 4, 2006.
  • Policy Bulletin #27 is amended to clarify the various exemptions to the requirement to file annual valuation reports as a result of amendment to the EPPA - December 4, 2006.
  • A new Policy Bulletin #38 has been created to discuss actuarial valuation reports and cost certificates; and in particular, to clarify the requirements for filing an interim cost certificate - December 4, 2006.
  • The AIR and Cost Certificate forms have been revised slightly based on comment and feedback we have received from various pension stakeholders - December 4, 2006.

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November 2006

Employment Pensions E-Update
November 24, 2006

A new resource is available for pension plan administrators, service providers, and plan members who wish to obtain electronic updates of significant changes to the Employment Pensions website. Sign up for our electronic notification today!

Council of Ministers of Securities Regulation News Release:
Next stage of passport system will enhance market access across Canada
November 24, 2006

Edmonton ... Canada’s provinces and territories are moving ahead with further changes in securities regulation that will enhance access to markets across the country and improve Canada’s international competitiveness and investor protection.

The Council of Ministers of Securities Regulation met in Edmonton on November 22 and 23 to approve the next phase of the passport system and review progress on the initiative to harmonize and streamline securities laws across Canada. The passport system will enable issuers and registrants to deal only with the securities regulator in their principal jurisdiction.  [Complete news release]

Alberta’s strong economy drives revenue increase
Government adds to capital commitments
November 15, 2006

Second Quarter Fiscal Highlights

  • Revenue has increased $2.7 billion from budget (up $1.2 billion from First Quarter forecast)
  • Expense has increased $1.4 billion from budget (up $47 million from First Quarter forecast)
  • The surplus is forecast at $5.4 billion, an increase of $1.3 billion from budget (up $1.2 billion from First Quarter forecast)
  • Surplus allocated to savings, capital and the Sustainability Fund

Edmonton... A vibrant, growing economy is strengthening Alberta’s 2006-07 financial outlook as reported in the Government of Alberta’s Second Quarter Fiscal Update. Revenue is now forecast to be $2.7 billion higher than budget, with tax revenue increasing nearly $2 billion due to personal income growth and stronger corporate profits.

Insurance Act - Amendment Regulations
November 8, 2006

The following amendment regulations have been posted on the Insurance Publications and Forms page:

Automobile Insurance Rate Board holds consultation meetings
November 6, 2006

Calgary... The Automobile Insurance Rate Board (AIRB) is hosting a series of consultation meetings this week to discuss an acceptable cost of capital and profit margin for auto insurers, one of the factors considered during the AIRB's annual review of compulsory insurance premiums.

Economists from Canada and the United States, actuarial professionals, and insurance industry stakeholders have been invited to make presentations at the consultation meetings, which will be held in Calgary at McDougall Centre, 455 - 6th Street S.W., November 8 to November 10, from 9 a.m. to 5 p.m. Information provided by the board's consumer representative will also be examined.

People interested in listening to the technical presentations need to contact the AIRB main office at (780) 427-5428 to reserve a space. Transcripts and submissions made at this week's consultation meetings will also be available on the AIRB website.  [Complete information bulletin]

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October 2006

Statistics publications update
October 27, 2006

Alberta Finance, Statistics has released the new Economic Multipliers (2002) document which is available for sale. Information about their Custom Economic Impact Analysis model is also available on the Statistics Publications page.

Albertans invited to learn more about their Heritage Fund
October 26, 2006 - Open House November 2, 2006

Vermilion – “Each year we report the activities of the Heritage fund results to Albertans and answer questions on its performance,” said Ronald Liepert, Chair of the Standing Committee on the Alberta Heritage Savings Trust Fund. “The annual meetings change locations throughout the province in an effort to involve as many Albertans as possible and this year’s meeting will be held in Vermilion.”

The open house was held on Thursday, November 2, 2006 at the Vermilion Seniors Centre at 5324 – 50 Avenue, Vermilion, Alberta from 7 to 8:30 p.m. Click on the link below for:

Auto insurer (Coseco General Insurance Company) issued penalty for overcharging premiums
October 19, 2006

Edmonton... The Superintendent of Insurance has issued a $15,000 penalty to Coseco General Insurance Company for failing to charge approved premiums for compulsory auto insurance, a violation of the Insurance Act.

Administrative error resulted in some drivers being charged higher auto insurance premiums than allowed by the province’s maximum premium grid. One hundred and twenty-three insurance policies were affected, resulting in 71 policyholders being overcharged about $16,400 in premiums between October 2004 and May 2006.

The penalty takes into consideration that the company notified the Office of the Superintendent of Insurance of the error and policyholders have been reimbursed for premium overpayments. [Complete information bulletin]

Royalty Tax Credit Quarterly Rate
October 19, 2006

The Alberta Royalty Tax Credit (ARTC) rate for the fourth quarter of 2006 has been posted.

Economic Spotlight
October 13, 2006

A new Economic Spotlight, The 1970s Economic Boom vs. the Current Boom, has been posted on the Economic Information page.

Auto insurer (State Farm Mutual Automobile Insurance Company) issued penalty for overcharging premiums
October 12, 2006

Edmonton... The Superintendent of Insurance has issued a $45,000 penalty to State Farm Mutual Automobile Insurance Company for failing to charge their approved premiums for compulsory auto insurance in relation to a new business discount, a violation of the Insurance Act. Approximately 13,500 Alberta auto insurance policies were affected, resulting in 6,400 policyholders being overcharged about $475,000 in premiums.

On June 1, 2000 State Farm introduced a five per cent new business discount for auto insurance in Alberta. In September 2003, the insurer became aware the discount was not being applied to all qualifying policies as the result of administrative error. State Farm did not implement an action plan to correct the premium overcharges until November 2005. The company began reimbursing policyholders with interest in December 2005 and unclaimed premium refunds will be given to charity.  [Complete information bulletin]

IFTA Fees Change
October 11, 2006

NOTE: Alberta IFTA licence and decals fee will change effective January 1, 2007. For more information see the newly updated information circular IFTA-2R7, Alberta IFTA Licensing and Reporting Requirements.

Prescribed Interest Rates
October 2, 2006

Tax and Revenue Administration has posted the prescribed interest rates and debit interest rate for International Fuel Tax Agreement purposes for the fourth quarter of 2006.

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September 2006

Alberta Population Report - 2nd Quarter, 2006
September 27, 2006

The Alberta Population Report for the 2nd Quarter of 2006 (pdf) has been added to the Demographic Information page.

Government annual reports outline programs and accomplishments of 2005-06
September 26, 2006

Edmonton... Increased investment in infrastructure and savings, new dental and optical programs for seniors, the formation of an environmental emergency response team, and the addition of 160 police officers to Alberta communities are among the accomplishments presented in the Alberta government’s 2005-06 ministry annual reports.

“With the individual ministry annual reports, Albertans get an extensive look at the government’s track record over the past year,” said Finance Minister Shirley McClellan. “It’s important to note that $3.7 billion was provided for roads, schools, post-secondary institutions, health facilities, municipal infrastructure, and other capital projects in 2005-06. In total, capital spending increased by 32 per cent over the previous fiscal year, reflecting greater municipal infrastructure support and the first year of a new five-year, $3 billion Municipal Infrastructure Program.”

Alberta Royalty Tax Credit (ARTC) and Royalty Credit for Individuals and Trusts (RCIT) Programs to End in January 2007
September 21, 2006

Please note that as announced by the Alberta government on September 21, 2006, (Energy Minister confirms end of Alberta Royalty Tax Credit Program) Alberta will discontinue its ARTC and RCIT programs for corporations, individuals and trusts effective January 1, 2007. See Special Notice Vol. 5 No. 21, Discontinuance of Alberta Royalty Tax Credit (ARTC) and Royalty Credit for Individuals and Trusts (RCIT) Programs.

Government enhances corporate dividend tax credit and small business income threshold
Changes will also make Alberta's business tax system more equitable
September 20, 2006

Edmonton... The Alberta government is enhancing the province's dividend tax credit and boosting the small business income threshold to encourage greater investment and help ensure Alberta remains the place to do business, announced Finance Minister Shirley McClellan.

"We strive to maintain a competitive tax system in Alberta because it's an integral part of the province's prosperity," said McClellan. "Eliminating the double taxation of corporate dividends will enhance Alberta's investment climate. Increasing the income threshold promotes small business growth."

Currently, dividend income is taxed twice: first when the income is earned in the corporation, and again at the personal income tax level when investors receive the dividends. To address this double taxation, federal and provincial governments provide dividend tax credits on personal income taxes as an offset. However, the dividend tax credits have not fully offset taxes paid at the general corporate rate.

Earlier this year, the federal government announced it is enhancing the dividend tax credit for eligible corporate dividends beginning in 2006, eliminating double taxation by 2010.

Alberta will parallel the federal changes and eliminate double taxation by increasing the tax credit on eligible dividends paid out of corporate income taxed at the general rate. The changes will be implemented over four years and will apply to eligible dividends received on or after January 1, 2006.  [Complete news release and backgrounder.]

Tobacco Tax information circulars updated
September 18, 2006

The entire series of Tobacco Tax information circulars has been updated.

Small business deduction information circular revamped
September 12, 2006

The Alberta Small Business Deduction information circular CT-17R4 has been updated to reflect the new, lower corporate tax rate. The circular has also been revised to enhance its clarity and eliminate outdated information.

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August 2006

Economic Spotlight
August 30, 2006

A new Economic Spotlight, Estimates of Provincial Trend Real GDP Growth, has been posted on the Economic Information page.

Tax Notes - September 2006 Issue
August 30, 2006

Why change the Fuel Tax Act? What is the Unclaimed Personal Property and Vested Property Act that will be reintroduced into the Legislature early next year? Some IFTA changes will make it easier for you to comply. How you can avoid a Marked Fuel pitfall. You'll find all this information and more in the September 2006 issue of Tax Notes - released August 30, 2006. (Please note:  you may also subscribe to receive this publication in your inbox.)

Strong fiscal results allow increased investment in capital and savings
August 23, 2006

First Quarter Highlights:

  • Capital funding increased by $1.8 billion
  • $200 million Energy Innovation Fund established
  • Additional $391 million allocated to savings
  • Surplus forecast at $4.3 billion

Edmonton... Higher projected revenue in the current fiscal year and better-than-forecast year-end results from 2005-06 will allow the Government of Alberta to strengthen investment in the province’s future. Additional funding for infrastructure, health, education, and savings were announced as part of the 2006-07 First Quarter Fiscal Report.

“Alberta’s economy is strong and vibrant, with the population growing by an estimated 90,000 people last year, the equivalent of the City of Red Deer,” said Finance Minister Shirley McClellan. “That kind of growth brings added pressure on our provincial infrastructure and services. We are addressing these priorities, while making investments that will benefit future generations.” Click on the links below for:

Albertans age 50 and over have increased access to locked-in retirement savings
August 9, 2006

Edmonton... Albertans leaving a Registered Pension Plan will have better access to their retirement savings as the result of changes to Employment Pension Plans Act regulations. Effective November 1, people have a one-time option to unlock up to 50 per cent of their locked-in pension contributions after exiting an eligible pension plan.

“Albertans are looking for greater flexibility in managing their retirement savings,” said Finance Minister Shirley McClellan. “The regulation changes strike the right balance. Half of the eligible retirement savings will remain locked to ensure Albertans have a stable source of income during their senior years, while the remaining amount can be unlocked to allow increased individual control over retirement income.”

To qualify, Albertans must be at least 50 years of age and have written consent from their pension partner. The unlocking option is exercised when income starts to be withdrawn from locked-in retirement savings. This occurs when funds from a Locked-in Retirement Account (LIRA) or eligible pension plan are transferred to a life annuity, Life Income Fund (LIF) or Defined Contribution Retirement Income Account (DC-RIA).

Click on the links below for:

Updated PROP Information Circular
August 8, 2006

The Prescribed Rebate Off-road Percentages Information Circular TEFU-2R2 has been updated to incorporate the addition of the Forestry industry to the PROP fuel tax rebate program.

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July 2006

Automobile Insurance Rate Board News Release:
Alberta drivers to see another reduction in premiums
July 31, 2006

Edmonton... On November 1st, Alberta drivers will see a three per cent reduction in premiums for mandatory auto insurance. This reduction will come into effect for Albertans upon renewal of their mandatory coverage, and brings total reductions since reforms were introduced to 18 per cent. The reduction comes as part of the annual review of compulsory auto insurance premiums by the Automobile Insurance Rate Board (AIRB).

"The AIRB has been diligent in following its mandate, and has been open and accountable in the process," said Minister of Finance Shirley McClellan. "Premium reviews are an important part of auto insurance reform and a good example of how Albertans are benefiting from the process."

In setting the new rates, the board considered input from Albertans and the board's consumer representative during three days of public meetings in June. Input from industry and the Insurance Bureau of Canada was also considered.  Go to:

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June 2006

Alberta Population Report - 1st Quarter, 2006
June 29, 2006

The Alberta Population Report for the 1st Quarter of 2006 (pdf) has been added to the Demographic Information page.

Record resource revenue provides boost for infrastructure and savings - Government spending continues to focus on priority areas of health and education
June 26, 2006

2005-06 Highlights

  • Alberta recorded a surplus for the 12th consecutive year.
  • Revenue exceeded expense by $8.7 billion. The surplus was primarily allocated to the Capital Account to help pay for capital projects and to the Heritage Fund and endowments.
  • Revenue was $35.9 billion, $6.3 billion higher than in 2004-05, primarily due to higher resource revenue.
  • Expense was $27.2 billion, $2.9 billion higher than in 2004-05, primarily due to higher municipal infrastructure support, health and education spending, and natural gas rebates.
  • The Capital Plan supported $3.7 billion of capital projects, $901 million higher than in 2004-05, primarily due to higher municipal infrastructure support.
  • $2.7 billion was deposited in the Heritage Fund and other endowments, including $750 million for the new advanced education endowment.
  • $1.3 billion was provided to Albertans through the Alberta 2005 Resource Rebate.

Edmonton... Strong energy prices pushed resource revenue to a record $14.3 billion in 2005-06, allowing the government to boost support for infrastructure and increase its savings. Details of the province’s performance on Budget 2005 were released by Finance Minister Shirley McClellan in the Government of Alberta 2005-06 Annual Report.

“In the past year we saw record oil and natural gas prices and land lease sales,” said McClellan. “That kind of activity won’t continue indefinitely, which is why we made financially responsible decisions to invest in capital and increase the province’s savings.”

Prescribed Interest Rates
June 20, 2006

Tax and Revenue Administration has posted the prescribed interest rates and debit interest rate for International Fuel Tax Agreement purposes for the third quarter of 2006.

Tourism Levy Special Notice
June 16, 2006

Special Notice Vol. 7, No. 3 - Tourism Levy Late Filing Penalties, Filing and Payment Options - has been posted (and replaces Vol. 7, No. 2 on the same topic).

Council of Ministers reaffirm commitment to passport system of securities regulation
June 14, 2006

Toronto, Ont. ... Canada's provinces and territories are making significant progress in improving the country's securities regulatory system and remain committed to the passport system.

The Council of Ministers of Securities Regulation met in Toronto on June 12 and 13 to review progress on the passport system and the initiative to harmonize and streamline securities laws across Canada. Ministers from provinces and territories across Canada reiterated their support for the passport system as the means to reduce barriers between jurisdictions and enhance the efficiency of the country's capital markets.

"We are extremely pleased with the work that's been done to date," said Shirley McClellan, Deputy Premier and Minister of Finance for Alberta, and chair of the Council. "A number of provinces have already adopted the legislation required to enhance the passport and further harmonize and streamline our laws, and the remainder intend to do the same this fall."  [Complete news release.]

Economic Spotlight - Alberta's Housing Market
June 12, 2006

An Economic Spotlight entitled "Alberta's Housing Market" has been added to the Economic Information page.

AITE Information Circulars Updated
June 9, 2006

The entire series of Alberta Indian Tax Exemption Information Circulars has been updated.

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May 2006

2005 Guide to Completion of the Alberta Corporate Income Tax Return
May 18, 2006

The AT1 Guide - Part 1 and Part 2, as well as Appendix A and Appendix B, has been updated for 2005. Hard copies are available by emailing tra.revenue@gov.ab.ca or telephoning Information Services at (780) 427-3044.   (Call 310-0000; then enter (780) 427-3044 for toll free service in Alberta).

Bob Splane appointed chair of ATB Financial
May 17, 2006

Edmonton... An Order in Council approved today has appointed Robert (Bob) Splane chair of ATB Financial’s board of directors effective June 16, 2006.

“I am delighted to announce Mr. Splane’s appointment. He brings a wealth of experience to his new role, including nationally-recognized board governance expertise and a strong financial lending and insurance background,” stated Shirley McClellan, Deputy Premier and Minister of Finance.

Splane served as president and managing director of the AFSC from 1988 to 1996, prior to sitting as chair of the organization’s board of directors for 10 years. He was founding president of the Bank of Alberta, which later became the Canadian Western Bank where he was also the initial president. Other career highlights include serving as chair of the Credit Union Deposit Guarantee Corporation and on the board of directors for the Alberta Municipal Financing Corporation (now the Alberta Capital Finance Authority). He also owns and operates a family farm in the Boyle area. [Complete news release.]

Employment Pension Plans Regulation - Consultation Response Paper
May 2, 2006

Following the consulation period concerning changes to the Employment Pension Plans Regulation, the consultation response paper is now available for review.  (For background information see the December 2005 discussion paper.)

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April 2006

Tax and Revenue Administration documents - new and updated
April 28, 2006

Fuel Tax Act Special Notice Vol. 1 No. 19, Taxability of Kerosene, was issued on April 28, 2006, informing Alberta fuel tax collectors who have sold clear kerosene without collecting Alberta tax that they should file a voluntary disclosure with TRA by May 31, 2006.

Pension Policy Bulletins Updated
April 28, 2006

The following Pension Policy Bulletins have been updated and are available on the Pension Publications and Forms page:

Legislation enhances competitiveness of Alberta's capital markets
Securities Transfer Act provides clear and modern set of rules for investors
April 24, 2006

Edmonton... Bill 36, the Securities Transfer Act, 2006, will update the legal framework for Alberta's capital markets, ensuring the province remains competitive and attractive to investors.

"With the advent of electronic trading, it's important that the rules keep up with changes in the way business is done," said Finance Minister Shirley McClellan. "This proposed legislation helps maintain the Alberta Advantage by providing a clear set of rules for investors."

If passed, the Securities Transfer Act, 2006 would consolidate Alberta's securities transfer laws under one act to provide a single, uniform set of rules for the transfer and holding of securities and interests in investment property. It would also establish clear rules for the electronic transfer of securities.

The majority of provinces and territories are adopting practically uniform legislation, aligning Canada's laws as much as possible with the Uniform Commercial Code in the United States.

"This represents a significant achievement of interprovincial cooperation in responding to the needs of Canada's capital markets," said Grande Prairie-Smokey MLA Mel Knight, who introduced the legislation in the Alberta Legislature on April 24. [Complete news release.]

Public meetings set for review of mandatory auto insurance premiums
April 13, 2006

Edmonton... The Automobile Insurance Rate Board will hold formal public meetings this summer to review mandatory premiums, as required by Alberta’s automobile insurance reform process.

The meetings are set for June 14th and 15th in Edmonton and June 20th and 21st in Calgary. The rate board’s mandate is to annually review premium rates for basic coverage on private passenger vehicles. In setting the maximum premiums, the board will consider the public input gathered, and other industry wide costs and administrative expenses.

The review will not address:

  • optional or commercial coverage;
  • complaints against insurance companies or the insurance industry;
  • complaints or comments on the $4,000 cap or the diagnostic and treatment protocols; or
  • insurance company profits. (The issue of insurance company profits will be addressed in a separate set of public meetings scheduled for fall 2006.)

Interested Albertans are encouraged to file a letter of intent to the board by April 21, 2006.  [Complete information bulletin and Questions and Answers about the review.]

Tax and Revenue Administration documents updated
April 7, 2006

The following documents have been updated:

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March 2006

Alberta Population Report - 4th Quarter, 2005
March 28, 2006

The Alberta Population Report for the 4th Quarter of 2005 (pdf) has been added to the Demographic Information page.

Economic Spotlight
March 23, 2006

An Economic Spotlight, "Alberta's Economic Performance: 1994-2004", has been posted on the Economic Information page.

Legislation enhances protection for investors
Bill 25 also further harmonizes Alberta with Canadian capital markets
March 23, 2006

Edmonton... Bill 25, the Securities Amendment Act, 2006, strengthens protection for investors against false and misleading information issued by companies operating in Alberta's capital markets.

If passed, the amendments to Alberta's Securities Act would give secondary market investors the statutory right to sue public companies in Alberta that provide misleading disclosure or fail to make timely disclosure. Essentially identical legislative amendments are being adopted in other jurisdictions across Canada, and Ontario implemented the changes on December 31, 2005.

"More than 90 per cent of all equity trading in Canada occurs in the secondary market," said Finance Minister Shirley McClellan. "This legislation not only enhances protection for investors, but will maintain the integrity and international high standing of Canada's capital markets."  [complete news release]

Budget 2006 balances immediate and
Go to Budget 2006 Documentslong-term priorities of Albertans
March 22, 2006

Edmonton... Thanks to Alberta’s strong economy and debt elimination, the Alberta government will be able to continue addressing infrastructure needs and improving services to Albertans while lowering taxes and increasing savings. Details were announced by Finance Minister Shirley McClellan as she unveiled Budget 2006: Strengthening Today, Securing Tomorrow.

The estimated $4.1-billion surplus in 2006-07 has been allocated primarily to savings and capital investment.

The Alberta government will support $13.3 billion in infrastructure work over three years. It will also invest more in education and health services, hire more police officers and prosecutors and increase savings over three years by nearly $2.7 billion.

“This is the first budget of our second century, and Alberta is in a truly enviable position — with the best fiscal outlook of any province,” said McClellan. “We’ve eliminated debt, we have a thriving economy, and we have the fiscal strength to build on Alberta’s current success while creating opportunities for the future.”  [complete news release]

2006-07 Interim Supply Estimates released
March 7, 2006

The 2006-07 Interim Supply Estimates are available on the Budget Documents and Quarterlies page.

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February 2006

2005-06 Supplementary Estimates No. 2 released
February 28, 2006

The 2005-06 Supplementary Estimates No. 2 are available on the Budget Documents and Quarterlies page.

Heritage Fund receives billion-dollar injection from 2005-06 surplus
Alberta’s revenue invested to benefit current and future generations
February 27, 2006

Highlights of Third Quarter Fiscal Update:

  • Heritage Fund receives a $1 billion deposit, in addition to $345 million for inflation proofing.
  • Surplus is forecast at $7.4 billion and has been primarily allocated to capital and savings.
  • The surplus is $5.9 billion above budget and $1.5 billion above the second-quarter forecast.
  • Total revenue is up $7.3 billion since budget (after deducting $1.3 billion for resource rebates).
  • Total expense is up $1.4 billion since budget (but down $52 million from second quarter).

Edmonton... An additional $1 billion will be invested this fiscal year in the Alberta Heritage Savings Trust Fund as part of the government’s plan for investing in the future. The cash injection is a significant investment in the Heritage Fund, which had a fair value of $13.6 billion on Dec. 31, 2005 prior to this announcement.

As outlined in the Alberta government’s Third Quarter Fiscal Update, record high energy prices, plus record high land lease sales contributed to a surplus forecast of $7.4 billion. This is $5.9 billion above budget and $1.5 billion above the second quarter forecast. Total revenue is forecast to be $7.3 billion higher than estimated in the budget, with a record $14.4 billion in non-renewable resource revenue. A forecasted
$3.4 billion in revenue from bonuses and sales of Crown leases contributed greatly to this year’s record resource revenue with two sales alone equaling revenue from all 23 sales in 2004-05.

“With the debt eliminated, we will continue to build a stronger future for Alberta through increased savings plus wise investment in priority areas such as health, education and infrastructure,” said Finance Minister Shirley McClellan. “The Heritage Fund has played a key role in putting Alberta in the strong fiscal position we all enjoy today. This additional investment will help ensure the Fund continues to benefit Albertans now and in the future.”

Tax and Revenue Administration 2005 Client Survey Results
February 24, 2006

Alberta Finance, Tax and Revenue Administration (TRA), conducts an annual survey to determine the satisfaction of its clients (the people who deal with TRA) with its administration of the tax and rebate programs and with client costs to comply with the relevant legislation. The client survey results for 2005 are now available.

Council of Ministers remains committed to improving securities regulation in Canada
February 9, 2006

Victoria, B.C.... The Council of Ministers of Securities Regulation re-affirmed its commitment to enhancing the passport system and further harmonizing and streamlining securities laws across Canada.

Ministers responsible for securities regulation met in Victoria on February 7 and 8 to review progress on the passport system and securities reform initiative. They also had an opportunity to hear from Purdy Crawford, who chairs a panel developing a model for a common securities regulator on behalf of Ontario, and Dawn Russell, a panel member.

"Mr. Crawford certainly offered us some food for thought," said Shirley McClellan, Deputy Premier and Minister of Finance for Alberta, and Chair of the Council, while noting that it is not the panel's final report and that comments provided to Purdy Crawford could provide insights into the Ministers' concerns.

The Council of Ministers remains committed to working together to make meaningful changes to Canada's securities regulatory system for the benefit of the country's capital markets and investors and welcomes Ontario's continuing participation. "We've introduced real changes to make Canada's capital markets more competitive with the United States and in the global marketplace."

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January 2006

Millions of Albertans receive resource rebate
January 31, 2006

Edmonton... Close to three million Alberta Resource Rebate payments have been made to eligible Albertans, including rebates for 700,000 children under the age of 18. Payments for children were in most cases included on the cheque of their primary caregiver, usually the mother. Cheque distribution for the first scheduled run started during the second-last week of January and continued over several days.

Individuals who believe they qualified to receive the rebate in January but have not received a cheque by February 10, 2006, should contact Canada Revenue Agency’s Alberta Resource Rebate enquiries line at
1-866-209-8903 (for service in English) or 1-866-209-8994 (for service in French).

Updated information can also be found on the Government of Alberta website, www.gov.ab.ca, and on Canada Revenue Agency’s website at www.cra-arc.gc.ca/benefits (click on ‘Alberta 2005 Resource Rebate’ under the questions and answers section). General questions about the program should continue to be directed to the Alberta government’s Service Alberta line at 310-4455, toll free in Alberta, or toll free from outside Alberta at 1-866-825-4455.

To qualify for the rebate, individuals must have filed their 2004 income tax return, even if they had no income in 2004, and have been residents of Alberta on September 1, 2005, the province’s centennial birthday. Every eligible Albertan 18 and older must file his/her own individual tax return in order to receive a rebate payment. Even in the case where usually only one spouse files a return, both individuals must file their own separate return. Children’s rebates are sent to the primary caregiver with whom they were matched through the Canada Child Tax Benefit (CCTB) as of January 2006.

For more information, please see the complete Information Bulletin, which includes questions and answers on the Alberta 2005 Resource Rebate.

Royalty Tax Credit Quarterly Rate
January 9, 2006

The Alberta Royalty Tax Credit (ARTC) rate for the first quarter of 2006 has been posted.

Tax change leaves more money in Albertans' hands
January 4, 2006

Edmonton... Provincial personal tax credits will rise in 2006, lessening Albertans' tax load by nearly $53 million. The increase stems from a 2001 government decision to index the tax system to inflation.

The province's basic personal exemption, spousal exemption and eligible dependent amounts will rise to $14,799 each. That's an increase of $276 or 1.9 per cent for this year over last and a total increase of 14.7 per cent since indexing began in 2001.

"A typical family of four can earn up to $36,800 with the Alberta Family Employment Tax Credit before paying a dime in provincial income tax," said Finance Minister Shirley McClellan. An estimated 13,400 low-income earners will be added to those shielded from provincial income taxes with this increase. In total since 2001, indexing of exemptions has removed provincial income tax costs from 143,600 Albertans. Read the complete news release.

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Page last updated:  March 16, 2008