The Alberta Personal
Income Tax Act was amended
in 2002 to include Part 1.1 on the NHL Players Tax.
Part 1.1 on the tax and the related NHL Tax Regulation
came into effect on September 1, 2002. Alberta Finance, Tax and Revenue
Administration (TRA), administers the NHL Players Tax.
The legislation
requires all National Hockey League (NHL) players
who provide hockey duties or services to their team
in hockey facilities in Alberta to pay a tax. The tax is calculated at 12.5 per cent
of the taxable salary the player earns for
an NHL regular season game played in Alberta.
The
tax for an NHL player for a calendar year will be
the sum of the tax calculated for all games the
player plays in Alberta during the calendar year.
NHL players required to pay the tax are normally
those on the “twenty-three
player roster” for the game.
NHL teams are
required to withhold, and remit to TRA, the NHL
player tax for their players for regular season
games played in Alberta in a month. Players are
responsible for ensuring their teams have made the
required remittances. Players taxable during a calendar
year are generally not required to file an NHL player
tax return with TRA unless their team(s) did not
make any remittances on their behalf for the year.
This
tax applies to all NHL regular season games played
in Alberta after August 31, 2002, until December
31, 2005. Please note: The tax will NOT apply to games played in Alberta after December 31, 2005.
Returns for December 2005 are due January 16, 2006, as the 15th falls on a weekend. Players' summaries will be issued after all returns are processed.
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