P-5.1 - Act respecting the sectoral parameters of certain fiscal measures

Full text
chapter P-5.1
Act respecting the sectoral parameters of certain fiscal measures
SECTORAL PARAMETERS OF CERTAIN FISCAL MEASURESMarch 5 2012March 5 2012
CHAPTER I
PURPOSE AND JURISDICTION
1. This Act governs the issue, amendment and revocation of certificates, qualification certificates and other documents that are necessary for the purposes of certain fiscal measures. It establishes the general rules that apply to the decisions to issue, amend or revoke those documents and sets out, in each of its schedules, the special rules and sectoral parameters that apply to the fiscal measures referred to in this Act.
2012, c. 1, s. 1.
2. The sectoral parameters set out in the schedules to this Act are administered by
(1)  Investissement Québec, as regards Schedule A;
(2)  the Minister of Agriculture, Fisheries and Food, as regards Schedule B;
(3)  the Minister of Economic Development, Innovation and Export Trade, as regards Schedule C;
(4)  the Minister of Education, Recreation and Sports, as regards Schedule D;
(5)  the Minister of Finance, as regards Schedule E;
(6)  the Minister of Natural Resources and Wildlife, as regards Schedule F;
(7)  the Minister of Transport, as regards Schedule G; and
(8)  the Société de développement des entreprises culturelles, as regards Schedule H.
2012, c. 1, s. 2.
CHAPTER II
INTERPRETATION AND GENERAL
3. Unless the context indicates otherwise, any reference to a minister or body in this Act and its regulations is a reference to the ministers and bodies listed in section 2, while a reference to a responsible minister or body is a reference to the minister or body entrusted with the administration of the sectoral parameters set out in a schedule.
2012, c. 1, s. 3.
4. In this Act and its regulations, unless the context indicates otherwise,
agreed proportion has the meaning assigned by section 1.8 of the Taxation Act (chapter I-3);
business means a business within the meaning of section 1 of the Taxation Act, or a part of such a business;
employee has the meaning assigned by section 1 of the Taxation Act;
fiscal law means a fiscal law within the meaning of the Tax Administration Act (chapter A-6.002);
fiscal measure means a provision or a set of provisions of a fiscal law that allows a person to benefit from a deduction in computing income, taxable income, tax payable or paid-up capital, an exemption from or a reduction of an assessment, an amount deemed to have been paid on account of tax payable, a reduction of the tax on capital payable, or any other similar benefit, that is referred to in section 1.1 of a schedule, including incidental provisions that aim to recover, in whole or in part, the tax benefit so granted;
fiscal period has the meaning assigned by Part I of the Taxation Act;
individual has the meaning assigned by section 1 of the Taxation Act;
person has the meaning assigned by section 1 of the Taxation Act;
prescribed means, in the case of a form or information to be provided in a form, prescribed by the responsible minister or by the responsible minister’s deputy minister, or prescribed by the responsible body, and, in any other case, prescribed by regulation or determined in accordance with rules prescribed by regulation;
property has the meaning assigned by section 1 of the Taxation Act;
subsidiary controlled corporation has the meaning assigned by section 1 of the Taxation Act;
subsidiary wholly-owned corporation has the meaning assigned by section 1 of the Taxation Act;
taxation year has the meaning assigned by Part I of the Taxation Act.
2012, c. 1, s. 4.
5. In this Act and its regulations, unless otherwise provided,
(1)  a legal person, whether or not established for pecuniary gain, is designated by the word corporation ;
(2)  a person is considered to be a person resident in Québec or Canada if the person is so considered for the purposes of the Taxation Act (chapter I-3), and is considered to be a person not resident in Québec or Canada in any other case;
(3)  a person or a partnership is considered not to be dealing at arm’s length with another person or partnership if the person or partnership is so considered for the purposes of Part I of the Taxation Act, and is considered to be a person or partnership dealing at arm’s length with the other person or partnership in any other case;
(4)  a person is considered to be related to another person if the person is so considered for the purposes of Part I of the Taxation Act, and is considered not to be so related in any other case;
(5)  a corporation is considered to be associated with another corporation in a taxation year if the corporation is so considered for the purposes of Part I of the Taxation Act, and is considered not to be so associated in any other case;
(6)  a corporation is considered to be controlled, directly or indirectly in any manner whatever, by a person or a group of persons if the corporation is so considered for the purposes of Part I of the Taxation Act, and is considered not to be so controlled in any other case;
(7)  a reference to a taxation year ending in another year includes a reference to a taxation year the end of which coincides with the end of the other year; and
(8)  a reference to a fiscal period ending in a taxation year includes a reference to a fiscal period the end of which coincides with the end of the taxation year.
2012, c. 1, s. 5.
6. If a fiscal measure requires that a certificate, qualification certificate or other document be issued in respect of a property, activity, business, person or partnership, each portion of the document, issued under this Act, that attests to or certifies the existence of a fact, of a state or of elements of qualification in respect of the property, activity, business, person or partnership is deemed, for the purposes of this Act, its regulations and the fiscal measure, to be a separate document.
2012, c. 1, s. 6.
7. For greater certainty, the issue, under this Act, of a document in respect of an individual attesting or certifying that the individual is recognized as an eligible employee, a specified employee or any other type of employee is not binding on the Minister of Revenue with respect to the individual’s employee status for the purposes of a fiscal law.
2012, c. 1, s. 7.
CHAPTER III
CERTIFICATES, QUALIFICATION CERTIFICATES AND OTHER DOCUMENTS
DIVISION I
APPLICATION FOR ISSUE OF DOCUMENT
8. Any application for a certificate, qualification certificate or other document that is necessary for the purposes of a fiscal measure must, as provided for in the relevant provision of a schedule to this Act, be filed with the responsible minister or body
(1)  by the person who wishes to benefit from the fiscal measure or, if such a person wishes to do so as a member of a partnership, by the partnership;
(2)  by a person or a partnership in respect of an individual who works for the person or partnership, to enable that individual to benefit from the fiscal measure; or
(3)  by any other person or partnership to enable a third party to benefit from the fiscal measure.
2012, c. 1, s. 8.
9. The application must be made in the prescribed form, contain prescribed information and be filed with the required documents. It must also contain any other information or document required by the applicable schedule to this Act and comply with any other special requirement provided for in that schedule.
2012, c. 1, s. 9.
10. The responsible minister or body may accept an application that is incomplete if only a few details are missing and such omissions are not likely to prevent or significantly delay the examination of the application. Otherwise, the responsible minister or body must return the application to the applicant as soon as possible, specifying which forms, information or documents are missing.
2012, c. 1, s. 10.
DIVISION II
ISSUE OF DOCUMENT
11. The responsible minister or body must examine with dispatch every application filed for the issue of a certificate, qualification certificate or other document. For such purpose, the responsible minister or body may contact the applicant to request any additional information or document or take any other action the responsible minister or body considers relevant.
However, should a fee determined under Chapter VII be payable in respect of such an application, the responsible minister or body is not required to examine the application unless the fee has been duly paid by the applicant.
2012, c. 1, s. 11.
12. The responsible minister or body, if of the opinion that all the conditions for the issue of a document are met, issues the document to the applicant. However, the content of the document may differ from what is applied for if an assessment of the applicable facts and parameters so warrants.
If the application is denied, or if the content of the issued document differs from what was applied for, the responsible minister or body must notify the applicant of the decision in writing, giving the reasons on which it is based, and inform the applicant of the right to apply for a review of the decision within the time specified in section 23. If the application was made in respect of an individual described in paragraph 2 of section 8, the responsible minister or body must also, except for the purposes of Chapter III of Schedule E, send the individual a copy of the notice.
2012, c. 1, s. 12.
13. The period of validity of a document issued under this Act is indeterminate, unless the applicable schedule specifies the period for which it is issued.
2012, c. 1, s. 13.
14. Every document issued under this Act must state, in addition to the information required by the applicable schedule, the date of its coming into force, which date may precede the date of its issue. The document must also state, if it is issued for a specified period, its period of validity.
2012, c. 1, s. 14.
CHAPTER IV
AMENDMENT AND REVOCATION OF A DOCUMENT
15. The responsible minister or body may amend or revoke a certificate, qualification certificate or other document that has been issued for the purposes of a fiscal measure whose sectoral parameters are under their administration, if information or documents brought to their attention so warrant.
A person or a partnership to whom such a document has been issued is required, on pain of revocation of the document, to inform the responsible minister or body of any change that may entail in the amendment or revocation of the document.
In addition to any grounds set out in a provision of a schedule to this Act, the responsible minister or body is justified in revoking such a document if
(1)  a condition for the issue of the document is no longer complied with; or
(2)  the person or partnership to whom the document was issued made a false statement or omitted material information in the application for the issue of the document or in any other document filed in support of the application, and
(a)  it may reasonably be considered that the document would not have been issued had it not been for the false statement or omission, or
(b)  the person or partnership made the false statement or omitted the material information knowingly or under circumstances amounting to gross negligence.
2012, c. 1, s. 15.
16. Before amending or revoking a document, the responsible minister or body must send a written notice of intention to the person or partnership to whom the document was issued, stating the grounds on which the intended action is based. The responsible minister or body must give the person or partnership 30 days as of the date of the notice to make representations and, if need be, to file any relevant document.
2012, c. 1, s. 16.
17. After the expiry of the time provided for in section 16, the responsible minister or body must, with dispatch, communicate the decision in writing to the person or partnership.
If the decision is to amend or revoke the document, the responsible minister or body must attach the reasons for the decision to the new document referred to in section 18 or to the notice of revocation referred to in section 19 and notify the person or partnership in writing of the right to apply for a review of the decision within the time specified in section 23.
2012, c. 1, s. 17.
18. To amend a document that was issued to a person or a partnership, the responsible minister or body replaces it with a new document with the same date of coming into force.
If the amendment applies only in respect of a part of the period of validity of the document, the new document must reflect that fact by describing both the situation prevailing before the amendment and the new situation.
The new document must be sent to the person or partnership.
2012, c. 1, s. 18.
19. To revoke a document, the responsible minister or body sends a notice of revocation to the person or partnership to whom the document was issued.
2012, c. 1, s. 19.
20. The revocation of a document becomes effective on the date specified by the responsible minister or body in the notice of revocation.
Unless otherwise provided by a special provision of the applicable schedule to this Act, the effective date of the revocation, which may precede the date of the notice of revocation, is
(1)  the earliest date as of which a condition for the issue of the document is no longer met, if the document is revoked on the ground set out in subparagraph 1 of the third paragraph of section 15;
(2)  the date of coming into force of the document, if the document is revoked on the ground set out in subparagraph 2 of the third paragraph of section 15 and the condition of subparagraph a of that subparagraph 2 is met; and
(3)  the date determined by the responsible minister or body, in any other case.
2012, c. 1, s. 20.
21. If a document has been issued to a person or a partnership in respect of an individual described in paragraph 2 of section 8, the responsible minister or body must send the individual a copy of any notice or document sent to the person or partnership in accordance with this chapter.
In the case of a notice of intention provided for in section 16, the responsible minister or body must also give the individual 30 days as of the date of the notice to make representations and, if need be, to file any relevant document.
The second paragraph does not apply in respect of an individual to whom Chapter III of Schedule E applies. The same is true of the first paragraph except in the case of a new document issued under section 18 or a notice of revocation issued under section 19.
2012, c. 1, s. 21.
CHAPTER V
REVIEW
22. On the initiative of an interested person, an application may be made to the responsible minister or body for the review of any decision rendered under Chapter III or IV denying an application for a certificate, qualification certificate or other document or amending or revoking such a document. The same applies to a decision to issue a document whose content differs from what is applied for.
However, should a fee determined under Chapter VII be payable in respect of the application for review, the application is not admissible unless the fee has been duly paid by the interested person.
2012, c. 1, s. 22.
23. The application for review must be filed in writing within 60 days of the notification of the contested decision or the issue of the document whose content differs from what was applied for. The application for review must set out the grounds on which it is based.
However, the responsible minister or body may consider an application for review that was filed after the expiry of the time specified in the first paragraph for reasons the responsible minister or body deems reasonable in the circumstances.
2012, c. 1, s. 23.
24. The responsible minister or body must process the application for review with dispatch, and may maintain, quash or amend the contested decision. Before rendering a decision, the responsible minister or body must give interested parties an opportunity to make representations or file any relevant document.
2012, c. 1, s. 24.
25. The responsible minister or body communicates the review decision in writing, including reasons, to interested parties.
2012, c. 1, s. 25.
26. For the purposes of this chapter, the person or partnership who applied for the issue of a document and, if the application for review is filed in respect of an individual described in paragraph 2 of section 8, the individual, except for the purposes of Chapter III of Schedule E, are interested parties.
2012, c. 1, s. 26.
CHAPTER VI
INSPECTION AND INQUIRY
27. The responsible minister or body, or a person designated by the responsible minister or body, may, for the purposes of this Act,
(1)  require any information or document, examine any document and make a copy of it;
(2)  require that such information or a copy of such a document be sent, including by fax machine, via telematics or on a computer medium; and
(3)  for the purpose of applying Chapter IV, have access, at any reasonable time, to any establishment where the responsible minister or body, or the person designated by the responsible minister or body, has reasonable cause to believe that information necessary for the inspection is kept.
A copy of a document certified by the responsible minister or body, or by the person designated by the responsible minister or body, is admissible in evidence and has the same probative force as the original.
2012, c. 1, s. 27.
28. The responsible minister or body, or a person designated by the responsible minister or body, may inquire into any matter relating to the carrying out of this Act.
2012, c. 1, s. 28.
29. When conducting an inspection or inquiry, any person designated by a minister or body must, on request, identify himself or herself and produce a document attesting his or her capacity.
No proceedings may be brought against such a person for an act performed in good faith in the exercise of his or her functions.
2012, c. 1, s. 29.
CHAPTER VII
FEES
30. The responsible minister or body may, in a regulation, require, in the cases and subject to the terms and conditions prescribed in the regulation, the payment of a fee for an act performed under this Act by the responsible minister or body.
2012, c. 1, s. 30.
CHAPTER VIII
COMMUNICATION OF INFORMATION
31. At the request of the Minister of Finance, the responsible minister or body must communicate to that Minister any information held by the responsible minister or body for the purposes of this Act if such communication is necessary to formulate or evaluate the fiscal policy of the Government or to inform a person or a partnership concerning the application of the fiscal policy in respect of the person or partnership.
The communication of information is carried on despite sections 23 and 24 of the Act respecting Access to documents held by public bodies and the Protection of personal information (chapter A-2.1) and the first paragraph of section 59 of that Act.
2012, c. 1, s. 31.
32. The communication of information to the Minister of Finance for a purpose described in the first paragraph of section 31, carried on in accordance with that section or on the initiative of a responsible minister or body referred to in that first paragraph, need not be the subject of an agreement referred to in sections 68 and 68.1 of the Act respecting Access to documents held by public bodies and the Protection of personal information (chapter A-2.1) or be recorded in the register provided for in section 41.3 of that Act.
2012, c. 1, s. 32.
CHAPTER IX
REGULATIONS
33. The Government may make regulations prescribing the measures required to carry out this Act.
2012, c. 1, s. 33.
34. Every regulation made under this Act comes into force on the date of its publication in the Gazette officielle du Québec or on any later date specified in the regulation.
A regulation made under section 33 may also, if it so provides, apply to a period that precedes the date of its publication, but that is not prior to 5 March 2012.
2012, c. 1, s. 34.
CHAPTER X
PENAL PROVISIONS
35. Every person who
(1)  provides false or inaccurate information to the responsible minister or body, or to a person designated by either of them to exercise all or part of the powers conferred on them by sections 27 and 28, or
(2)  hinders or attempts to hinder in any way a person acting as required or permitted by this Act,
is guilty of an offence.
2012, c. 1, s. 35.
36. Every person who, by an act or omission, assists another person in committing an offence under section 35 or, by encouragement, advice or consent or by an authorization or an order, induces another person to commit such an offence is guilty of the same offence.
2012, c. 1, s. 36.
37. A person who commits an offence under section 35 is liable to a fine of not less than $2,000 nor more than $25,000.
2012, c. 1, s. 37.
38. Penal proceedings for an offence under paragraph 1 of section 35 are prescribed one year from the date on which the prosecutor became aware of the commission of the offence. However, no proceedings may be instituted for such an offence if more than five years have elapsed from the date of the commission of the offence.
2012, c. 1, s. 38.
CHAPTER XI
AMENDING PROVISIONS
ACT RESPECTING INTERNATIONAL FINANCIAL CENTRES
39. (Amendment integrated into c. C-8.3, s. 4).
2012, c. 1, s. 39.
40. (Amendment integrated into c. C-8.3, s. 6).
2012, c. 1, s. 40.
41. (Amendment integrated into c. C-8.3, s. 9).
2012, c. 1, s. 41.
42. (Amendment integrated into c. C-8.3, s. 11).
2012, c. 1, s. 42.
43. (Amendment integrated into c. C-8.3, s. 13).
2012, c. 1, s. 43.
44. (Omitted).
2012, c. 1, s. 44.
45. (Amendment integrated into c. C-8.3, s. 17).
2012, c. 1, s. 45.
46. (Omitted).
2012, c. 1, s. 46.
47. (Omitted).
2012, c. 1, s. 47.
48. (Amendment integrated into c. C-8.3, s. 30.1).
2012, c. 1, s. 48.
49. (Amendment integrated into c. C-8.3, s. 31).
2012, c. 1, s. 49.
50. (Amendment integrated into c. C-8.3, s. 36).
2012, c. 1, s. 50.
51. (Amendment integrated into c. C-8.3, s. 39).
2012, c. 1, s. 51.
52. (Amendment integrated into c. C-8.3, s. 51).
2012, c. 1, s. 52.
53. (Amendment integrated into c. C-8.3, s. 63).
2012, c. 1, s. 53.
54. (Amendment integrated into c. C-8.3, s. 64).
2012, c. 1, s. 54.
55. (Amendment integrated into c. C-8.3, s. 65.1).
2012, c. 1, s. 55.
56. (Amendment integrated into c. C-8.3, s. 66).
2012, c. 1, s. 56.
57. (Amendment integrated into c. C-8.3, s. 69.2).
2012, c. 1, s. 57.
58. (Amendment integrated into c. C-8.3, s. 69.3).
2012, c. 1, s. 58.
59. (Amendment integrated into c. C-8.3, s. 104).
2012, c. 1, s. 59.
CINEMA ACT
60. (Amendment integrated into c. C-18.1, s. 168).
2012, c. 1, s. 60.
TAXATION ACT
61. (Amendment integrated into c. I-3, s. 737.20).
2012, c. 1, s. 61.
62. (Amendment integrated into c. I-3, s. 737.27).
2012, c. 1, s. 62.
63. (Amendment integrated into c. I-3, s. 1029.8.36.59.32).
2012, c. 1, s. 63.
64. (Amendment integrated into c. I-3, s. 1049.0.3).
2012, c. 1, s. 64.
65. (Amendment integrated into c. I-3, s. 1049.0.5.1).
2012, c. 1, s. 65.
66. (Amendment integrated into c. I-3, s. 1049.13.1).
2012, c. 1, s. 66.
67. (Amendment integrated into c. I-3, s. 1129.12.8).
2012, c. 1, s. 67.
68. (Amendment integrated into c. I-3, s. 1129.12.12).
2012, c. 1, s. 68.
ACT RESPECTING INVESTISSEMENT QUÉBEC
69. (Amendment integrated into c. I-16.0.1, s. 21).
2012, c. 1, s. 69.
COOPERATIVE INVESTMENT PLAN ACT
70. (Amendment integrated into c. R-8.1.1, s. 2).
2012, c. 1, s. 70.
71. (Amendment integrated into c. R-8.1.1, s. 3).
2012, c. 1, s. 71.
72. (Amendment integrated into c. R-8.1.1, s. 4).
2012, c. 1, s. 72.
73. (Omitted).
2012, c. 1, s. 73.
74. (Amendment integrated into c. R-8.1.1, s. 23).
2012, c. 1, s. 74.
75. (Amendment integrated into c. R-8.1.1, s. 24).
2012, c. 1, s. 75.
76. (Amendment integrated into c. R-8.1.1, s. 29).
2012, c. 1, s. 76.
ACT RESPECTING THE SOCIÉTÉ DE DÉVELOPPEMENT DES ENTREPRISES CULTURELLES
77. (Omitted).
2012, c. 1, s. 77.
CHAPTER XII
MISCELLANEOUS, TRANSITIONAL AND FINAL PROVISIONS
DIVISION I
VALIDATION OF ACTS PERFORMED BEFORE 5 MARCH 2012
78. Decisions rendered and all other acts performed by a minister or body before 5 March 2012 that concern the issue, amendment or revocation of a certificate, qualification certificate or other document that is necessary for the purposes of a measure referred to in section 79 are validated insofar as those acts were based on standards not provided for by an Act or regulation.
Fees charged in respect of those acts are also validated, insofar as the fees were not authorized by an Act or regulation.
In this section, any reference to a Minister includes a reference to the Minister of Tourism.
2012, c. 1, s. 78.
79. The measures to which sections 78 and 80 refer are those listed in section 1.1 of each of the schedules to this Act as well as the following measures:
(1)  the deduction in respect of a qualified investment fund provided for in Title VII.2.1 of Book IV of Part I of the Taxation Act (chapter I-3);
(2)  the deduction in respect of an independent trader in financial derivatives provided for in Title VII.2.5 of that Book IV;
(3)  the deduction in respect of Québec business investment companies provided for in Title VI.2 of Book VII of that Part I;
(4)  the tax credit for scientific research and experimental development provided for in Division II.3 of Chapter III.1 of Title III of Book IX of that Part I;
(5)  the tax credit for the creation of digital productions provided for in Division II.6.0.0.6 of that Chapter III.1;
(6)  the tax credit for e-business activities provided for in Division II.6.0.1.7 of that Chapter III.1;
(7)  the tax credit for job creation in the optics industry in the Québec area provided for in Division II.6.6.1 of that Chapter III.1;
(8)  the tax credit for job creation in the manufacturing or environmental sector in the Angus Technopole provided for in Division II.6.6.3 of that Chapter III.1;
(9)  the tax credits for the development of the fields of biotechnology and nutraceuticals provided for in Division II.6.6.5 of that Chapter III.1;
(10)  the tax credit for job creation in the Carrefours de l’innovation provided for in Division II.6.6.7 of that Chapter III.1;
(11)  the tax credit for investment fund creation provided for in Division II.6.8 of that Chapter III.1;
(12)  the tax credit relating to fund managers provided for in Division II.6.9 of that Chapter III.1;
(13)  the tax credit for solicitation expenditure in respect of a foreign investment fund provided for in Division II.6.12 of that Chapter III.1;
(14)  the tax credit relating to financial analysts specialized in securities of Québec corporations or in financial derivatives provided for in Division II.6.13 of that Chapter III.1;
(15)  the tax credit relating to communications between corporations and stock market investors provided for in Division II.6.14 of that Chapter III.1;
(16)  the tax credits to foster the participation of securities dealers on the NASDAQ Stock Exchange provided for in Division II.6.14.1 of that Chapter III.1; and
(17)  the capital tax holiday in respect of a property used in the operation of recreational facilities in Québec provided for in paragraphs b.3 and b.4 of section 1137 and sections 1137.2 to 1137.7 of the Taxation Act.
2012, c. 1, s. 79.
DIVISION II
TRANSITIONAL PROVISIONS
80. The provisions of Chapters III and IV that concern the issue, amendment or revocation, after 4 March 2012, of a document that is necessary for the purposes of a measure referred to in section 79, in relation either to a date or period that precedes 1 January 2011 or, where the measure is one listed in section 1.1 of Schedule H, to a period having begun before 1 January 2011, and the provisions of Chapter V that concern the review, after 4 March 2012, of a decision in respect of such a document, in relation to such a preceding date or period, apply on the basis of the standards applicable on that date or during that period, despite the fact that those standards are not provided for by an Act or regulation.
For that purpose, any reference to a Minister in Chapters IV and V includes a reference to the Minister of Tourism.
For the purposes of the first paragraph, a reference to standards applicable during a period or on a date is a reference to such standards established by the Minister of Finance and, if applicable, by the minister or body responsible for their application.
2012, c. 1, s. 80.
81. Before 5 March 2012, the first paragraph of section 22 is to be read
(1)  where it applies between 30 March 2010 and 1 January 2011, as if under Chapter III or IV was replaced by under Chapter II or III of Schedule E or under Division III of Chapter III of the Act respecting international financial centres (chapter C-8.3) ; and
(2)  where it applies between 31 December 2010 and 5 March 2012, without reference to under Chapter III or IV .
2012, c. 1, s. 81.
82. Between 30 March 2010 and 5 March 2012, the third paragraph of section 10, the second paragraph of section 12, section 23 and Divisions III and IV of Chapter III of the Act respecting international financial centres (chapter C-8.3), except the second paragraph of each of sections 26 and 29, apply in respect of Chapters II and III of Schedule E as if they were part of this Act. To that end, those Divisions are to be read as if
(1)  under this subdivision in section 23 was replaced by under Division III of Chapter II of Schedule E to the Act respecting the sectoral parameters of certain fiscal measures (2012, chapter 1) or under Division II of Chapter III of that Act ;
(2)  to section 10 in the first paragraph of section 24 was replaced by to section 2.3 of Schedule E to the Act respecting the sectoral parameters of certain fiscal measures (2012, chapter 1) ;
(3)  to section 19 or 20, or section 21 as it read before being repealed in the second paragraph of section 27 was replaced by to section 3.5 of Schedule E to the Act respecting the sectoral parameters of certain fiscal measures (2012, chapter 1) ; and
(4)  under this chapter in the first paragraph of section 31 was replaced by under Chapter II or III of Schedule E to the Act respecting the sectoral parameters of certain fiscal measures (2012, chapter 1) .
2012, c. 1, s. 82.
83. Section 1 of the Regulation respecting the tariff of fees and the annual contribution payable under the Act respecting international financial centres (chapter C-8.3, r. 1) is deemed to be a regulation made under section 30 by the Minister of Finance for the purposes of Chapters II and III of Schedule E and applies to those chapters until the date of coming into force of the first regulation made by that Minister under that section for the purposes of those chapters. For that purpose, that section 1 is to be read
(1)  as if a reference to the Act was a reference to Chapters II and III of Schedule E to this Act;
(2)  as if section 9 of the Act in subparagraph 1 of the first paragraph was replaced by section 2.3 of Schedule E to the Act respecting the sectoral parameters of certain fiscal measures (2012, chapter 1) ;
(3)  as if section 11 of the Act in subparagraph 2 of the first paragraph was replaced by section 2.5 of Schedule E to the Act respecting the sectoral parameters of certain fiscal measures ;
(4)  as if section 13 of the Act in subparagraph 3 of the first paragraph was replaced by section 2.8 or 3.3 of Schedule E to the Act respecting the sectoral parameters of certain fiscal measures ;
(5)  as if section 17 of the Act in subparagraph 4 of the first paragraph was replaced by section 2.10 or 3.5 of Schedule E to the Act respecting the sectoral parameters of certain fiscal measures ;
(6)  as if sections 10 and 12 of the Act in subparagraph 5 of the first paragraph was replaced by sections 2.3 and 2.5 of Schedule E to the Act respecting the sectoral parameters of certain fiscal measures ; and
(7)  as if sections 14 to 16 or sections 19 to 22 of the Act in subparagraph 6 of the first paragraph was replaced by sections 2.8 and 3.3 or sections 2.10 and 3.5 of Schedule E to the Act respecting the sectoral parameters of certain fiscal measures .
2012, c. 1, s. 83.
84. If, before 5 March 2012, the responsible minister or body charged a fee for an act described in this Act, the responsible minister or body may continue to charge that fee until the date on which the first regulation under section 30 comes into force.
2012, c. 1, s. 84.
DIVISION III
ADMINISTRATION
85. The Minister of Finance is responsible for the administration of this Act.
2012, c. 1, s. 85.
DIVISION IV
FINAL PROVISIONS
86. Chapter I (except for the portion of section 2 before paragraph 1 and paragraph 5 of that section where they apply in respect of Chapter II or III of Schedule E), the first sentence of the first paragraph of section 12, the first paragraph of section 15, sections 60, 62, 69 and 77 and Schedules A to H (except for paragraph 4 of section 1.1 and Chapter V of Schedule C and the portion of section 1.1 before paragraph 3 and Chapters II and III of Schedule E) have effect from 1 January 2011.
2012, c. 1, s. 86.
87. The portion of section 2 before paragraph 1 and paragraph 5 of that section where they apply in respect of Chapter II or III of Schedule E, Chapter II, section 13, the first paragraph of section 22, sections 26, 39 to 46, 50, 52 to 59, 61, 81 to 83 and 85 and the portion of section 1.1 of Schedule E before paragraph 3, Chapter II of that Schedule (except for Division IV) and Chapter III of that Schedule (except for Division III) have effect from 31 March 2010.
2012, c. 1, s. 87.
88. (Omitted).
2012, c. 1, s. 88.
INVESTISSEMENT QUÉBEC
CHAPTER I
MEASURES COVERED BY THIS SCHEDULE
1.1. Investissement Québec administers the sectoral parameters of the following fiscal measures:
(1) the deduction in respect of a foreign specialist working in the Montréal international trade zone at Mirabel provided for in sections 737.18.6 to 737.18.7.3, 737.18.9 to 737.18.10.1 and 737.18.13 of the Taxation Act (chapter I-3);
(2) the deduction in respect of manufacturing or processing businesses in the resource regions provided for in sections 737.18.18 to 737.18.26 and 1138.2.3 of the Taxation Act and sections 33, 34 and 34.1.0.1 of the Act respecting the Régie de l’assurance maladie du Québec (chapter R-5);
(3) the deduction in respect of a foreign specialist in respect of the new economy provided for in sections 737.22.0.1 to 737.22.0.4 of the Taxation Act;
(4) the tax credit for multimedia titles (general) provided for in sections 1029.8.36.0.3.8 to 1029.8.36.0.3.17 of the Taxation Act;
(5) the tax credit for corporations specialized in the production of multimedia titles provided for in sections 1029.8.36.0.3.18 to 1029.8.36.0.3.26 of the Taxation Act;
(6) the tax credit for corporations established in E-Commerce Place provided for in sections 1029.8.36.0.3.46 to 1029.8.36.0.3.59 of the Taxation Act and sections 34.1.9 to 34.1.11 of the Act respecting the Régie de l’assurance maladie du Québec;
(7) the tax credit for major employment-generating projects provided for in sections 1029.8.36.0.3.72 to 1029.8.36.0.3.78 of the Taxation Act;
(8) the tax holidays and tax credits to foster the development of the new economy provided for in sections 771, 771.1, 771.8.5, 771.12, 771.13, 1029.8.36.0.17 to 1029.8.36.0.36.1 and 1138.2.1 of the Taxation Act and sections 33 and 34 of the Act respecting the Régie de l’assurance maladie du Québec;
(9) the tax holidays and tax credits relating to the Montréal international trade zone at Mirabel provided for in sections 737.18.6, 737.18.6.1, 737.18.8 to 737.18.9.2, 737.18.11, 737.18.12, 1029.8.36.0.38 to 1029.8.36.0.93, 1130, 1137 and 1137.8 of the Taxation Act and section 34 of the Act respecting the Régie de l’assurance maladie du Québec;
(10) the tax credit for job creation in the resource regions, in the Aluminum Valley and in the Gaspésie and certain maritime regions of Québec provided for in sections 1029.8.36.72.82.1 to 1029.8.36.72.82.12 of the Taxation Act;
(11) the tax credit for job creation in the Gaspésie and certain maritime regions of Québec in the fields of marine biotechnology, mariculture and marine products processing provided for in sections 1029.8.36.72.82.13 to 1029.8.36.72.82.26 of the Taxation Act; and
(12) the tax credit for the development of e-business provided for in sections 1029.8.36.0.3.79 to 1029.8.36.0.3.83 of the Taxation Act.
CHAPTER II
SECTORAL PARAMETERS OF DEDUCTION RELATING TO FOREIGN SPECIALIST WORKING IN MONTRÉAL INTERNATIONAL TRADE ZONE AT MIRABEL
DIVISION I
INTERPRETATION AND GENERAL
2.1. In this chapter, unless the context indicates otherwise,
eligible activity of a recognized business carried on by a corporation in a taxation year, or by a partnership in a fiscal period, means an activity that is specified in the business certificate, within the meaning of the first paragraph of section 10.3, held by the corporation or partnership in respect of the recognized business, and that is carried on in the Montréal international trade zone at Mirabel by the corporation in the year or by the partnership in the fiscal period;
eligible employer means a corporation or partnership that holds a valid business certificate within the meaning of the first paragraph of section 10.3;
foreign specialist tax holiday means the fiscal measure provided for in Title VII.2.2 of Book IV of Part I of the Taxation Act that allows an individual to deduct an amount in computing his or her taxable income for a taxation year under section 737.18.10 of that Act;
Montréal international trade zone at Mirabel has the meaning assigned by section 10.1;
recognized business of a corporation for a taxation year, or of a partnership for a fiscal period, means a business that the corporation or partnership declares it is carrying on in the year or fiscal period, and in respect of which the corporation or partnership holds a business certificate, within the meaning of the first paragraph of section 10.3.
Where a certificate referred to in the definition of eligible employer in the first paragraph is revoked retroactively, it is, for the purposes of that definition, deemed to be valid until the date of the notice of revocation.
2.2. In order for an individual who works for an eligible employer to benefit from the foreign specialist tax holiday for a taxation year, the eligible employer must have obtained a certificate in respect of the individual (in this chapter referred to as a specialist certificate ). The certificate is valid only for the taxation year for which it was obtained.
However, subject to section 2.3, a specialist certificate obtained by an eligible employer in respect of an individual for a particular taxation year is valid only if the employment contract binding the individual to the employer was entered into before 13 June 2003.
2.3. For the purposes of this chapter, a contract resulting from the renewal, after 12 June 2003, of an employment contract referred to in the second paragraph of section 2.2 (in this section referred to as the original contract ) is deemed not to be an employment contract separate from the original contract.
The rule set out in the first paragraph applies, with the necessary modifications, to a new employment contract that is entered into after 12 June 2003 with another eligible employer, which employer is deemed not to be an employer separate from the eligible employer (in this section referred to as the first employer ) who entered into the original contract, provided that
(1) the other eligible employer declares to Investissement Québec that
(a) it controls, directly or indirectly, the first employer,
(b) it is, directly or indirectly, a controlled subsidiary of the first employer, or
(c) as a result of a transaction referred to in section 518 or 566 of the Taxation Act, it is carrying on the business of the first employer in the course of which the individual who entered into the original contract performed duties that met the conditions of section 2.5; and
(2) it may reasonably be considered that, but for the change of employer, the individual who entered into the original contract would have continued to be recognized as a foreign specialist in respect of the first employer, in accordance with section 2.5, until the time when the individual took up employment with the other eligible employer.
2.4. The parameters provided for in this chapter are administered by Investissement Québec only in the exercise of its powers of amendment and revocation.
DIVISION II
SPECIALIST CERTIFICATE
2.5. A specialist certificate issued to an eligible employer certifies that the individual referred to in the certificate is recognized as a specialist in respect of the employer for the taxation year for which the application for the certificate was made or for the part of the year specified in it.
2.6. An individual may be recognized as a specialist in respect of an eligible employer if the individual is an administrator or professional whose expertise is widely recognized in the individual’s community and the individual’s duties with the employer are carried on exclusively or almost exclusively, on a continuous basis, in that capacity in the Montréal international trade zone at Mirabel and relate to the eligible activities of the recognized business carried on by the employer.
2.7. If an individual is temporarily absent from work for reasons it considers reasonable, Investissement Québec may, for the purpose of determining whether the individual meets the conditions for recognition as a specialist in respect of an eligible employer, consider that the individual continued to perform his or her duties throughout the period of absence exactly as he or she was performing them immediately before the beginning of that period.
CHAPTER III
SECTORAL PARAMETERS OF TAX HOLIDAYS RELATING TO MANUFACTURING OR PROCESSING BUSINESSES IN RESOURCE REGIONS
DIVISION I
INTERPRETATION AND GENERAL
3.1. In this chapter, unless the context indicates otherwise,
eligible region means
(1) any of the following administrative regions described in the Décret concernant la révision des limites des régions administratives du Québec (chapter D-11, r. 1):
(a) Bas-Saint-Laurent administrative region (01),
(b) Saguenay–Lac-Saint-Jean administrative region (02),
(c) Abitibi-Témiscamingue administrative region (08),
(d) Côte-Nord administrative region (09),
(e) Nord-du-Québec administrative region (10), and
(f) Gaspésie–Îles-de-la-Madeleine administrative region (11);
(2) any of the following regional county municipalities:
(a) Municipalité régionale de comté d’Antoine-Labelle,
(b) Municipalité régionale de comté de La Vallée-de-la-Gatineau,
(c) Municipalité régionale de comté de Mékinac, and
(d) Municipalité régionale de comté de Pontiac; or
(3) the urban agglomeration of La Tuque, described in section 8 of the Act respecting the exercise of certain municipal powers in certain urban agglomerations (chapter E-20.001);
qualified total payroll of a corporation for a taxation year means the qualified total payroll of the corporation for the year, as determined for the purposes of Title VII.2.4 of Book IV of Part I of the Taxation Act;
tax holiday relating to manufacturing or processing businesses means any of the following fiscal measures from which a corporation may benefit:
(1) the fiscal measure provided for in Title VII.2.4 of Book IV of Part I of the Taxation Act, under which the corporation may deduct an amount in computing its taxable income for a taxation year;
(2) the fiscal measure provided for in section 1138.2.3 of the Taxation Act, under which the corporation may benefit from a deduction in computing its paid-up capital for a taxation year; and
(3) the fiscal measure provided for in sections 33, 34 and 34.1.0.1 of the Act respecting the Régie de l’assurance maladie du Québec, which allows the corporation to benefit from a contribution exemption under the sixth paragraph of section 34 of that Act;
total payroll of a corporation for a taxation year means the total payroll of the corporation for the year, as determined for the purposes of Title VII.2.4 of Book IV of Part I of the Taxation Act.
3.2. A corporation must obtain a qualification certificate from Investissement Québec under this chapter for each taxation year ending after 31 December 2007 for which the corporation intends to benefit from a tax holiday relating to manufacturing or processing businesses.
DIVISION II
QUALIFICATION CERTIFICATE
3.3. A qualification certificate issued to a corporation under this chapter states whether or not a specified transfer of activities occurred at or before the end of the taxation year for which the application for the qualification certificate was filed. If applicable, the qualification certificate states the date of each specified transfer of activities, lists the activities it concerns and specifies the applicable tax benefit reduction factor for the year.
3.4. A transfer of activities is recognized as a specified transfer of activities if it occurs after 26 June 2007 and concerns activities of an establishment located in Québec, outside an eligible region.
However, a transfer of activities that occurred at any time in the part of the year 2007 that begins on 27 June is deemed to have occurred on or before 26 June of that year if, in the opinion of Investissement Québec, the transfer is the materialization of an agreement that was sufficiently advanced on the latter date.
3.5. A transfer of activities occurs at any time if activities are relocated from an establishment located in any place to an establishment of a corporation located in an eligible region and the relocation is carried out as part of the continuation of a business or part of a business by the corporation, as part of an outsourcing contract in favour of the corporation, or as a part of a reorganization of the business of the corporation.
The total payroll is the main factor to be taken into account in determining whether a transfer of activities occurred at any time.
3.6. The reduction factor that is applicable to a corporation for a taxation year corresponds to the proportion that the part of the corporation’s qualified total payroll, for the taxation year, that relates to the activities transferred as part of a specified transfer of activities that occurred at or before the end of the year is of all the corporation’s qualified total payroll for the year.
CHAPTER IV
SECTORAL PARAMETERS OF DEDUCTION RELATING TO FOREIGN SPECIALIST WORKING IN NEW ECONOMY SECTOR
DIVISION I
INTERPRETATION AND GENERAL
4.1. In this chapter, unless the context indicates otherwise,
biotechnology development centre has the meaning assigned by section 9.1;
eligible activity of an eligible employer for a taxation year means,
(1) if the eligible employer is a corporation described in paragraph 1 of the definition of eligible employer , an activity of the employer that is mentioned in the corporation certificate, within the meaning of subparagraph 1 of the first paragraph of section 7.2, issued to the corporation for the year;
(2) if the eligible employer is a corporation described in paragraph 3 of the definition of eligible employer , an activity of the employer that is mentioned in the activities certificate, within the meaning of subparagraph 2 of the first paragraph of section 9.3, issued to the corporation for the year; or
(3) if the eligible employer is a corporation described in any of paragraphs 4 to 7 of the definition of eligible employer , an activity of a business of the employer that is referred to in that paragraph;
eligible employer for a taxation year means
(1) a corporation to which a corporation certificate, within the meaning of subparagraph 1 of the first paragraph of section 7.2, is issued for the year;
(2) a corporation that holds a valid exempt corporation certificate, within the meaning of the first paragraph of section 9.2;
(3) a corporation to which a specified corporation certificate, within the meaning of subparagraph 1 of the first paragraph of section 9.3, is issued for the year;
(4) a corporation to which an unrevoked qualification certificate has been issued in respect of a business it carries on in the year, for the purposes of Division II.6.0.1.7 of Chapter III.1 of Title III of Book IX of Part I of the Taxation Act;
(5) a corporation to which an unrevoked qualification certificate has been issued in respect of a business it carries on in the year, for the purposes of Division II.6.6.7 of that Chapter III.1;
(6) a corporation to which an unrevoked qualification certificate has been issued in respect of a business that is referred to in paragraph a of the definition of recognized business in the first paragraph of section 1029.8.36.72.56 of the Taxation Act and that the corporation carries on in the year, for the purposes of Division II.6.6.5 of that Chapter III.1; or
(7) a corporation to which an unrevoked qualification certificate has been issued in respect of a business that is referred to in paragraph b of the definition of recognized business in the first paragraph of section 1029.8.36.72.56 of that Act and that the corporation carries on in the year, for the purposes of that Division II.6.6.5;
foreign specialist tax holiday means the fiscal measure provided for in Title VII.3.1 of Book IV of Part I of the Taxation Act, under which an individual may deduct an amount in computing his or her taxable income for a taxation year.
For the purposes of the definition of eligible employer in the first paragraph, the following rules must be taken into consideration:
(1) where a qualification certificate or a certificate referred to in any of paragraphs 2 and 4 to 7 of that definition is revoked retroactively, it is deemed to be valid until the date of the notice of revocation; and
(2) where a certificate referred to in paragraph 1 or 3 of that definition is revoked, it is deemed to be valid for the whole taxation year for which it was issued.
4.2. In order for an individual who works for an eligible employer to benefit from the foreign specialist tax holiday for a taxation year, the eligible employer must obtain a certificate in respect of the individual (in this chapter referred to as a specialist certificate ) from Investissement Québec. The certificate must be obtained for each taxation year for which the individual may claim the tax holiday.
The employer must file an application for the certificate before 1 March of the calendar year that follows the taxation year concerned.
However, subject to section 4.3, a specialist certificate obtained by an eligible employer in respect of an individual for a particular taxation year is valid only if the employment contract binding the individual to the employer was entered into before 13 June 2003. This rule does not apply to a corporation described in paragraph 2 or 3 of the definition of eligible employer in the first paragraph of section 4.1 that carries on a business in a biotechnology development centre.
4.3. For the purposes of this chapter, a contract resulting from the renewal, after 12 June 2003, of an employment contract referred to in the third paragraph of section 4.2 (in this section referred to as the original contract ) is deemed not to be an employment contract separate from the original contract.
The rule set out in the first paragraph applies, with the necessary modifications, to a new employment contract that is entered into after 12 June 2003 with another eligible employer, which employer is deemed not to be an employer separate from the eligible employer (in this section referred to as the first employer ) who entered into the original contract, provided that
(1) the other eligible employer is a corporation described in the third paragraph;
(2) the other eligible employer declares to Investissement Québec that
(a) it controls, directly or indirectly, the first employer,
(b) it is, directly or indirectly, a controlled subsidiary of the first employer, or
(c) as a result of a transaction referred to in section 518 or 566 of the Taxation Act, it is carrying on the business of the first employer in the course of which the individual who entered into the original contract performed duties that met the conditions of section 4.5; and
(3) it may reasonably be considered that, but for the change of employer, the individual who entered into the original contract would have continued to be recognized as a specialist in respect of the first employer, in accordance with section 4.5, until the time when the individual took up employment with the other eligible employer.
The corporation to which subparagraph 1 of the second paragraph refers is,
(1) if the first employer is a corporation described in any of paragraphs 1 and 4 to 7 of the definition of eligible employer in the first paragraph of section 4.1, a corporation described in that paragraph;
(2) if the first employer is a corporation described in paragraph 2 of the definition of eligible employer in the first paragraph of section 4.1, a corporation described in that paragraph that does not carry on a business in a biotechnology development centre; or
(3) if the first employer is a corporation described in paragraph 3 of the definition of eligible employer in the first paragraph of section 4.1, either of the following corporations:
(a) if the new employment contract is entered into between 12 June 2003 and 31 March 2004, a corporation described in that paragraph, and
(b) if the new employment contract is entered into after 30 March 2004, a corporation described in that paragraph that does not carry on a business in a biotechnology development centre.
4.4. Where an eligible employer is not a corporation that is described in paragraph 2 or 3 of the definition of eligible employer in the first paragraph of section 4.1 and that carries on a business in a biotechnology development centre, the parameters provided for in this chapter are administered by Investissement Québec only in the exercise of its powers of amendment and revocation.
DIVISION II
SPECIALIST CERTIFICATE
4.5. A specialist certificate issued to an eligible employer certifies that the individual referred to in the certificate is recognized as a specialist in respect of the employer for the taxation year for which the application for the certificate was made or for the part of the year specified in it.
4.6. An individual may be recognized as a specialist in respect of an eligible employer if
(1) unless the employer is a corporation described in paragraph 2 of the definition of eligible employer in the first paragraph of section 4.1, the individual’s duties with the employer are exclusively or almost exclusively, on a continuous basis, attributable to eligible activities of the employer; and
(2) the individual’s duties with the employer consist exclusively or almost exclusively, on a continuous basis, in carrying on any of, or a combination of, the following activities:
(a) training activities;
(b) research and development;
(c) specialized tasks with respect to innovation management, marketing, transfer of technologies or innovation financing;
(d) if the employer is a corporation described in any of paragraphs 1, 4 and 5 of the definition of eligible employer in the first paragraph of section 4.1, the development and operation of technological systems or infrastructures; and
(e) if the employer is a corporation described in paragraph 6 or 7 of the definition of eligible employer ´ in the first paragraph of section 4.1, or a corporation described in paragraph 2 or 3 of that definition that carries on a business in a biotechnology development centre, another activity in connection with biotechnology.
4.7. If an individual is temporarily absent from work for reasons it considers reasonable, Investissement Québec may, for the purpose of determining whether the individual meets the conditions for recognition as a specialist in respect of an eligible employer, consider that the individual continued to perform his or her duties throughout the period of absence exactly as he or she was performing them immediately before the beginning of that period.
4.8. An eligible employer to which a specialist certificate is issued for a taxation year must promptly send a copy of the certificate to the individual concerned so that it may be attached to his or her fiscal return for the year.
CHAPTER V
SECTORAL PARAMETERS OF TAX CREDIT FOR MULTIMEDIA TITLES (GENERAL)
DIVISION I
INTERPRETATION AND GENERAL
5.1. In this chapter, unless the context indicates otherwise,
chroma key shooting means any studio shooting in front of a plain coloured screen, generally blue or green, allowing, by means of electronic wizardry, the incorporation of objects, images or special effects in the final image;
completion date of the final version of a title means, subject to the third paragraph, its distribution date or the date of the distribution of the first title of a series of titles of which the title is part;
computer-aided special effects and animation means special effects and animation sequences, as generally understood in the industry, created using digital technology, excluding effects that are strictly sound effects, subtitles and animation sequences essentially created by means of editing techniques;
tax credit for multimedia titles means the fiscal measure provided for in Division II.6.0.1.2 of Chapter III.1 of Title III of Book IX of Part I of the Taxation Act, under which a corporation is deemed to have paid an amount to the Minister of Revenue on account of its tax payable under that Part for a taxation year;
title means an organized set of information.
For the purposes of the definition of completion date of the final version of a title in the first paragraph, the following rules must be taken into account:
(1) the titles that are part of the same collection do not constitute a series of titles if the script or, if there is no script, the action of the title, and the subject matter are substantially different from one title to another;
(2) the distribution date of a title distributed over the Internet is the date on which it is put online; and
(3) the distribution date of a title designed to be used with a game console or on a computer is the date from which the master copy is ready to be reproduced for commercialization purposes.
The completion date of the final version of a title developed by a corporation under a subcontract is the date on which the title is delivered to the client of the corporation.
5.2. To benefit from the tax credit for multimedia titles, a corporation must obtain a qualification certificate (in this chapter referred to as an initial qualification certificate ) from Investissement Québec in respect of each title for which the corporation intends to claim the credit.
A corporation must also obtain a certificate (in this chapter referred to as a production work certificate ) from Investissement Québec in respect of each such title. Certificates must be obtained for each taxation year for which the corporation intends to claim the tax credit for multimedia titles.
A corporation to which a production work certificate has been issued in respect of a title must obtain from Investissement Québec, after the completion of a final version of the title, a qualification certificate (in this chapter referred to as a final qualification certificate ). The application for a final qualification certificate must be filed within two months after the completion date of the final version of the title.
DIVISION II
INITIAL QUALIFICATION CERTIFICATE
5.3. An initial qualification certificate issued to a corporation certifies that the title referred to in the certificate is recognized as an eligible multimedia title or as an eligible related title, as the case may be. In addition, the certificate states
(1) whether or not the title is being produced to order;
(2) whether or not the title is intended to be commercialized; and
(3) whether or not the title is available in a French version.
Investissement Québec may no longer issue an initial qualification certificate in respect of a title where, on the completion date of the final version, the title meets neither the conditions to be recognized as an eligible multimedia title nor the conditions to be recognized as an eligible related title.
5.4. To be recognized as an eligible multimedia title, a title must, subject to section 5.9,
(1) be produced by the corporation referred to in section 5.2;
(2) contain a substantial volume of three of the following four types of information, in digital form: text, sound, still images and animated images; and
(3) be published on an electronic medium and controlled by software allowing interactivity.
However, a title is deemed to meet the condition of subparagraph 2 of the first paragraph if it is intended for users with a disability.
Similarly, a title that is part of another title produced by a corporation having no establishment in Québec is deemed to meet the conditions of subparagraphs 2 and 3 of the first paragraph if it is established to Investissement Québec’s satisfaction that the other title meets those conditions.
For the purposes of subparagraph 3 of the first paragraph, a title is controlled by software allowing interactivity if the user participates in the action of the title. In determining whether that condition is met, the following elements must be taken into account:
(1) the feedback capability of the title;
(2) the control that the user may exert on the action of the title; and
(3) the adaptation potential of the title to the user’s needs.
5.5. To be recognized as an eligible related title, a title must, subject to section 5.9,
(1) be produced by the corporation referred to in section 5.2;
(2) contain a substantial volume of three of the following four types of information: text, sound, still images and animated images; and
(3) be linked to a main multimedia title that is subject to an intellectual property right or a licence held by the corporation referred to in section 5.2 or by another corporation with which the corporation is associated, so that it is related to that right or licence.
However, a title is deemed to meet the condition of subparagraph 2 of the first paragraph if it is intended for users with a disability.
Similarly, a title that is part of another title produced by a corporation having no establishment in Québec is deemed to meet the conditions of subparagraphs 2 and 3 of the first paragraph if it is established to Investissement Québec’s satisfaction that the other title meets those conditions.
5.6. A particular title is considered to be a main multimedia title in relation to another title (in this section referred to as a related title ), if
(1) it is produced by the corporation that produces the related title or by a corporation associated with it;
(2) it meets the conditions of subparagraphs 2 and 3 of the first paragraph of section 5.4 or those of the first paragraph of section 6.4; and
(3) it is established to Investissement Québec’s satisfaction that the total labour expenditure, in respect of the title, of the corporation that produces it is at least $1,000,000 or that it is reasonable to expect that that total will be at least $1,000,000.
In addition, where the particular title is produced by a corporation associated with the corporation that produces the related title, it may be considered to be a main multimedia title, in relation to the related title, only if it is established to Investissement Québec’s satisfaction that the corporations are associated with each other throughout the period commencing at the beginning of the design stage of the related title and ending on the completion date of the final version, or that it is reasonable to expect that they will be associated with each other throughout that period.
The conditions for recognition as an eligible related title are deemed never to have been met in respect of a given title where it appears, on the last day of the 12-month period following the completion date of the final version of the given title or, if it is earlier, on the last day of the 36-month period following the completion date of the final version of the main multimedia title to which the given title is linked, that the total labour expenditure, in respect of the main multimedia title, of the corporation that produces it is less than $1,000,000. The same applies where it appears, at a particular time in the period referred to in the second paragraph, that the corporation that produces the given title and the corporation that produces the main multimedia title are no longer associated with each other.
In this section, the total labour expenditure of a corporation in respect of a particular title is the aggregate of all amounts each of which is the amount of the corporation’s qualified labour expenditure for a particular taxation year, in respect of the particular title, within the meaning of the first paragraph of section 1029.8.36.0.3.8 of the Taxation Act, the portion of the corporation’s qualified labour expenditure for a particular taxation year that may reasonably be attributed to the particular title, within the meaning of the first paragraph of section 1029.8.36.0.3.18 of that Act, or the amount that would be the amount of the corporation’s qualified labour expenditure for a particular taxation year in respect of the particular title, within the meaning of the first paragraph of section 1029.8.36.0.3.8 of that Act, if the corporation were a qualified corporation within the meaning of that first paragraph. However, only the amounts that are incurred and paid on or before the day that is 12 months after the completion date of the final version of the related title linked to the particular title and that relate exclusively to the production of the particular title may be taken into account.
5.7. A title is considered to be produced to order if production began after an order was placed with the corporation by a person or partnership other than a corporation associated with it.
5.8. A title is considered to be intended for commercialization only if it is available to the public and genuine commercialization efforts are made.
5.9. The following titles may be recognized neither as eligible multimedia titles nor as eligible related titles:
(1) titles that essentially are interpersonal communication services such as electronic bulletin board systems, discussion forums or videoconferencing, or transactional services such as online shopping, electronic ticketing, cybermalls or online payment systems;
(2) titles designed to advertise a for-profit corporation, present its activities or promote its products or services; and
(3) titles that encourage violence, sexism or discrimination.
However, subparagraph 2 of the first paragraph does not operate to exclude a title that meets the conditions of the first paragraph of section 5.5 solely because it is designed to promote the main multimedia title to which it is linked.
DIVISION III
PRODUCTION WORK CERTIFICATE
5.10. A production work certificate issued to a corporation for a taxation year specifies the work carried out in the year, in respect of the title referred to in the certificate, that is recognized as eligible production work.
The certificate also states the name of the individuals who, in the taxation year and while in the service of the corporation or of a subcontractor not dealing at arm’s length with it, are directly engaged in such work. In addition, the certificate specifies the functions performed by each individual in the course of the work, the period during which the individual engaged in such work, the number of hours spent by the individual on such work and, if applicable, the name of the subcontractor not dealing at arm’s length for which the individual works.
The production work certificate states the name of any person or partnership, other than a subcontractor not dealing at arm’s length, with which the corporation entered into a subcontract, specifies which work referred to in the first paragraph is performed under the subcontract, and states the proportion, expressed as a percentage, that the services rendered to the corporation by the person or partnership in connection with such work is of all the services rendered to the corporation by the person or partnership.
Investissement Québec issues a production work certificate in relation to a title to a corporation only if the corporation holds a valid initial qualification certificate in respect of the title.
An individual is deemed, in a particular period in which the individual works for the corporation or for a subcontractor not dealing at arm’s length with it, to spend all the hours of work completed in the service of the corporation or subcontractor engaging in work recognized as eligible production work in respect of a title if, during the period, the individual spends at least 90% of those hours engaging in such work.
In this section, subcontractor not dealing at arm’s length with a corporation means a person or partnership in respect of whom the following conditions are met:
(1) the corporation and the person or partnership have entered into a subcontract concerning the carrying out of work referred to in the first paragraph; and
(2) the corporation is not dealing at arm’s length with the person or partnership at the time the subcontract is entered into.
5.11. To be recognized as eligible production work in relation to a title, work must be engaged in for the purpose of completing a stage in the production of the title and in the period commencing at the beginning of the design stage and ending 36 months after the completion date of the final version. Such work includes activities relating to the writing of the title’s script, the development of its interactive structure, the acquisition and production of its constituent elements, its computer development and the system architecture. In the case of a title that is recognized as an eligible related title, such work also includes eligible computer-aided special effects and animation activities.
However, activities relating to mastering, media duplication, the acquisition of copyrights, the promotion, distribution or dissemination of a title, other than activities relating to the system architecture, may not be recognized as eligible production work in respect of a title.
Activities relating to the system architecture include the design, installation and maintenance of a network and of the servers required to operate a title, as well as the management of the system security and of the data access.
Activities that contribute directly to the creation of computer-aided special effects and animation and to chroma keying, such as motion capture, correction of animation curves, rendering, image retouching, graphics, filming, the use of computerized and automated animation benches, the use of computer-assisted automated cameras and chroma key shooting, are considered to be eligible computer-aided special effects and animation activities.
DIVISION IV
FINAL QUALIFICATION CERTIFICATE
5.12. A final qualification certificate issued to a corporation in relation to a title confirms the content of the valid initial qualification certificate the corporation holds in respect of the title. It also specifies the completion date of the final version of the title.
5.13. Investissement Québec must revoke the initial qualification certificate that was issued to a corporation in relation to a title if the corporation fails to file an application for a final qualification certificate in respect of the title within the time limit set out in the third paragraph of section 5.2 or if such an application is denied. The effective date of the revocation is the date of coming into force of the initial qualification certificate.
CHAPTER VI
SECTORAL PARAMETERS OF TAX CREDIT FOR CORPORATIONS SPECIALIZED IN PRODUCTION OF MULTIMEDIA TITLES
DIVISION I
INTERPRETATION AND GENERAL
6.1. In this chapter, unless the context indicates otherwise,
chroma key shooting means any studio shooting in front of a plain coloured screen, generally blue or green, allowing, by means of electronic wizardry, the incorporation of objects, images or special effects in the final image;
completion date of the final version of a title means, subject to the third paragraph, its distribution date or the date of the distribution of the first title of a series of titles of which the title is part;
computer-aided special effects and animation means special effects and animation sequences, as generally understood in the industry, created using digital technology, excluding effects that are strictly sound effects, subtitles and animation sequences essentially created by means of editing techniques;
eligible title means a title that is recognized by Investissement Québec under section 6.4 or 6.5 as an eligible multimedia title or as an eligible related title;
tax credit for corporations specialized in the production of multimedia titles means the fiscal measure provided for in Division II.6.0.1.3 of Chapter III.1 of Title III of Book IX of Part I of the Taxation Act, under which a corporation is deemed to have paid an amount to the Minister of Revenue on account of its tax payable under that Part for a taxation year;
title means an organized set of information.
For the purposes of the definition of completion date of the final version of a title in the first paragraph, the following rules must be taken into account:
(1) the titles that are part of the same collection do not constitute a series of titles if the script or, if there is no script, the action of the title, and the subject matter are substantially different from one title to another;
(2) the distribution date of a title distributed over the Internet is the date on which it is put online; and
(3) the distribution date of a title designed to be used with a game console or on a computer is the date from which the master copy is ready to be reproduced for commercialization purposes.
The completion date of the final version of a title developed by a corporation under a subcontract is the date on which the title is delivered to the client of the corporation.
6.2. To benefit from the tax credit for corporations specialized in the production of multimedia titles, a corporation must obtain a certificate (in this chapter referred to as a specialized corporation certificate ) from Investissement Québec, in respect of its activities for the purposes of Division II.6.0.1.3 of Chapter III.1 of Title III of Book IX of Part I of the Taxation Act.
A corporation must also obtain a certificate (in this chapter referred to as a production work certificate ) from Investissement Québec, in respect of the group of titles for which the corporation intends to claim the tax credit.
The certificates referred to in the first and second paragraphs must be obtained for each taxation year for which the corporation wishes to benefit from the fiscal measure.
A corporation to which a production work certificate has been issued in relation to a group of titles must also obtain from Investissement Québec, after the completion of the final version of a title included in that group, a qualification certificate in respect of the title (in this chapter referred to as a final qualification certificate ). The application for a final qualification certificate must be filed within two months after the completion date of the final version of the title.
DIVISION II
SPECIALIZED CORPORATION CERTIFICATE
6.3. The specialized corporation certificate issued to a corporation for a taxation year certifies that all or substantially all of the activities it carries on in Québec consist in producing, for itself or for another person or a partnership, eligible titles and, if applicable, in engaging in scientific research and experimental development relating to those titles. It specifies, as the case may be,
(1) that at least 75% of the eligible titles produced by the corporation in the year were not produced to order, are to be commercialized and are available in a French version, or that at least 75% of its gross revenue for the year is derived from such eligible titles;
(2) that at least 75% of the eligible titles produced by the corporation in the year were not produced to order and are to be commercialized, or that at least 75% of its gross revenue for the year is derived from such eligible titles; or
(3) that less than 75% of the eligible titles produced by the corporation in the year were not produced to order and are to be commercialized, and that less than 75% of its gross revenue for the year is derived from such eligible titles.
The specialized corporation certificate identifies the titles being produced by the corporation in the taxation year that are either titles described in the first paragraph of section 6.9 or titles that are not eligible titles for any other reason.
6.4. To be recognized as an eligible multimedia title, a title must, subject to section 6.9,
(1) contain a substantial volume of three of the following four types of information, in digital form: text, sound, still images and animated images; and
(2) be published on an electronic medium and controlled by software allowing interactivity.
However, a title is deemed to meet the condition of subparagraph 1 of the first paragraph if it is intended for users with a disability.
Similarly, a title that is part of another title produced by a corporation having no establishment in Québec is deemed to meet the conditions of the first paragraph if it is established to Investissement Québec’s satisfaction that the other title meets those conditions.
For the purposes of subparagraph 2 of the first paragraph, a title is controlled by software allowing interactivity if the user participates in the action of the title. In determining whether that condition is met, the following elements must be taken into account:
(1) the feedback capability of the title;
(2) the control that the user may exert on the action of the title; and
(3) the adaptation potential of the title to the user’s needs.
6.5. To be recognized as an eligible related title, a title must, subject to section 6.9,
(1) contain a substantial volume of three of the following four types of information: text, sound, still images and animated images; and
(2) be linked to a main multimedia title that is subject to an intellectual property right or a licence held by the corporation that produces it or by another corporation with which the corporation is associated, so that it is related to that right or licence.
However, a title is deemed to meet the condition of subparagraph 1 of the first paragraph if it is intended for users with a disability.
Similarly, a title that is part of another title produced by a corporation having no establishment in Québec is deemed to meet the conditions of the first paragraph if it is established to Investissement Québec’s satisfaction that the other title meets those conditions.
6.6. A particular title is considered to be a main multimedia title in relation to another title (in this section referred to as a related title ), if
(1) it is produced by the corporation that produces the related title or by a corporation associated with it;
(2) it meets the conditions of subparagraphs 2 and 3 of the first paragraph of section 5.4 or those of the first paragraph of section 6.4; and
(3) it is established to Investissement Québec’s satisfaction that the total labour expenditure, in respect of the title, of the corporation that produces it is at least $1,000,000 or that it is reasonable to expect that that total will be at least $1,000,000.
In addition, where the particular title is produced by a corporation associated with the corporation that produces the related title, it may be considered to be a main multimedia title, in relation to the related title, only if it is established to Investissement Québec’s satisfaction that the corporations are associated with each other throughout the period commencing at the beginning of the design stage of the related title and ending on the completion date of the final version, or that it is reasonable to expect that they will be associated with each other throughout that period.
The conditions for recognition as an eligible related title are deemed never to have been met in respect of a given title where it appears, on the last day of the 12-month period following the completion date of the final version of the given title or, if it is earlier, on the last day of the 36-month period following the completion date of the final version of the main multimedia title to which the given title is linked, that the total labour expenditure, in respect of the main multimedia title, of the corporation that produces it is less than $1,000,000. The same applies where it appears, at a particular time in the period referred to in the second paragraph, that the corporation that produces the given title and the corporation that produces the main multimedia title are no longer associated with each other.
In this section, the total labour expenditure of a corporation in respect of a particular title is the aggregate of all amounts each of which is the amount of the corporation’s qualified labour expenditure for a particular taxation year, in respect of the particular title, within the meaning of the first paragraph of section 1029.8.36.0.3.8 of the Taxation Act, the portion of the corporation’s qualified labour expenditure for a particular taxation year that may reasonably be attributed to the particular title, within the meaning of the first paragraph of section 1029.8.36.0.3.18 of that Act, or the amount that would be the amount of the corporation’s qualified labour expenditure for a particular taxation year in respect of the particular title, within the meaning of the first paragraph of section 1029.8.36.0.3.8 of that Act, if the corporation were a qualified corporation within the meaning of that first paragraph. However, only the amounts that are incurred and paid on or before the day that is 12 months after the completion date of the final version of the related title linked to the particular title and that relate exclusively to the production of the particular title may be taken into account.
6.7. A title is considered to be produced to order if production began after an order was placed with the corporation by a person or partnership other than a corporation associated with it.
6.8. A title is considered to be intended for commercialization only if it is available to the public and genuine commercialization efforts are made.
6.9. The following titles may be recognized neither as eligible multimedia titles nor as eligible related titles:
(1) titles that essentially are interpersonal communication services such as electronic bulletin board systems, discussion forums or videoconferencing, or transactional services such as online shopping, electronic ticketing, cybermalls or online payment systems;
(2) titles designed to advertise a for-profit corporation, present its activities or promote its products or services; and
(3) titles that encourage violence, sexism or discrimination.
However, subparagraph 2 of the first paragraph does not operate to exclude a title that meets the conditions of the first paragraph of section 6.5 solely because it is designed to promote the main multimedia title to which it is linked.
DIVISION III
PRODUCTION WORK CERTIFICATE
6.10. A production work certificate issued to a corporation for a taxation year specifies the work carried out in the year by the corporation or, if applicable, on its behalf, in respect of any eligible title it produces, that is recognized as eligible production work.
The certificate also states the name of the individuals who, in the taxation year and while in the service of the corporation or of a subcontractor not dealing at arm’s length with it, are directly engaged in such work. In addition, the certificate specifies the functions performed by each individual in the course of the work, the percentage of the individual’s working time devoted to such work and, if applicable, the name of the subcontractor not dealing at arm’s length for which the individual works.
The production work certificate states the name of any person or partnership, other than a subcontractor not dealing at arm’s length, with which the corporation entered into a subcontract, specifies which work referred to in the first paragraph is performed under the subcontract, and states the proportion, expressed as a percentage, that the services rendered to the corporation by the person or partnership in connection with such work is of all the services rendered to the corporation by the person or partnership.
An individual is deemed, in a particular period in which the individual works for the corporation or for a subcontractor not dealing at arm’s length with it, to spend all of the individual’s working time for the corporation or subcontractor engaging in work recognized as eligible production work in respect of an eligible title the corporation produces if, during the period, the individual spends at least 90% of working time engaging in such work.
In this section, subcontractor not dealing at arm’s length with a corporation means a person or partnership in respect of whom the following conditions are met:
(1) the corporation and the person or partnership have entered into a subcontract concerning the carrying out of work referred to in the first paragraph; and
(2) the corporation is not dealing at arm’s length with the person or partnership at the time the subcontract is entered into.
6.11. To be recognized as eligible production work in relation to an eligible title, work must be engaged in for the purpose of completing a stage in the production of the title and in the period commencing at the beginning of the design stage and ending 36 months after the completion date of the final version. Such work includes activities relating to the writing of the title’s script, the development of its interactive structure, the acquisition and production of its constituent elements, its computer development and the system architecture. If the eligible title is a title that is recognized as an eligible related title, such work also includes eligible computer-aided special effects and animation activities.
However, activities relating to mastering, media duplication, the acquisition of copyrights, the promotion, distribution or dissemination of an eligible title, other than activities relating to the system architecture, may not be recognized as eligible production work in respect of an eligible title.
Activities relating to the system architecture include the design, installation and maintenance of a network and of the servers required to operate a title, as well as the management of the system security and of the data access.
Activities that contribute directly to the creation of computer-aided special effects and animation and to chroma keying, such as motion capture, correction of animation curves, rendering, image retouching, graphics, filming, the use of computerized and automated animation benches, the use of computer-assisted automated cameras and chroma key shooting, are considered to be eligible computer-aided special effects and animation activities.
DIVISION IV
FINAL QUALIFICATION CERTIFICATE
6.12. A final qualification certificate issued to a corporation in respect of a title that has been taken into consideration for the purpose of issuing a specialized corporation certificate to the corporation for a taxation year confirms that the title is an eligible title and states
(1) whether or not the title is being produced to order;
(2) whether or not the title is intended to be commercialized; and
(3) whether or not the title is available in a French version.
6.13. If a corporation fails to file an application for a final qualification certificate in respect of a particular title within the time limit set out in the fourth paragraph of section 6.2 or if such an application is denied, Investissement Québec must amend or revoke, as applicable, each of the specialized corporation certificates issued to the corporation for a taxation year in which the title was being produced. Similarly, Investissement Québec may amend such a certificate if the characteristics of the title that are confirmed by the final qualification certificate differ from those taken into account when the certificate was issued.
CHAPTER VII
SECTORAL PARAMETERS OF TAX CREDIT FOR CORPORATIONS ESTABLISHED IN E-COMMERCE PLACE
DIVISION I
INTERPRETATION AND GENERAL
7.1. In this chapter,
E-Commerce Place means all the buildings located in Montréal at 1350 and 1360, boulevard René-Lévesque Ouest;
tax credit relating to E-Commerce Place means the fiscal measure provided for in Division II.6.0.1.6 of Chapter III.1 of Title III of Book IX of Part I of the Taxation Act, under which a corporation is deemed to have paid an amount to the Minister of Revenue on account of its tax payable under that Part for a taxation year or, if a corporation so elects for a taxation year, the fiscal measure provided for in subdivision 3.1 of Division I of Chapter IV of the Act respecting the Régie de l’assurance maladie du Québec, under which it is deemed to have made an overpayment to the Minister of Revenue under that Division I.
7.2. To benefit from the tax credit relating to E-Commerce Place, a corporation must obtain the following certificates from Investissement Québec:
(1) a certificate for the purposes of Division II.6.0.1.6 of Chapter III.1 of Title III of Book IX of Part I of the Taxation Act (in this chapter referred to as a corporation certificate ); and
(2) a certificate in respect of each individual for whom the corporation claims the tax credit (in this chapter referred to as an employee certificate ).
The certificates must be obtained for each taxation year for which the corporation intends to claim the tax credit.
However, Investissement Québec may deliver such certificates for a particular taxation year only if the following conditions are met in respect of the corporation that applied for them:
(1) a corporation certificate was issued to the corporation for the most recent taxation year, prior to the particular year, for which it filed a written application for that purpose before 12 June 2003;
(2) a corporation certificate was issued to the corporation for each taxation year that is between that prior year and the particular year; and
(3) at the time the certificates must be issued for the particular year, no certificate referred to in subparagraph 1 or 2 has been revoked.
If, at a particular time, Investissement Québec revokes a corporation certificate issued to the corporation for a given taxation year not prior to the taxation year referred to in subparagraph 1 of the third paragraph, any certificate issued to the corporation for a taxation year subsequent to the given year is deemed to be revoked by Investissement Québec at that time. In such a case, the effective date of the deemed revocation is the date of coming into force of the certificate that is deemed to be revoked. The same applies to any employee certificate issued for the given year, except that the effective date of the deemed revocation is the date specified in the notice of revocation of the corporation certificate.
7.3. For the purpose of applying, for a particular taxation year, the third paragraph of section 7.2 in respect of a particular corporation resulting from a corporate reorganization involving at least one other corporation that held a valid corporation certificate for its taxation year ending immediately before the time of the reorganization or that includes that time (in this section and in section 7.4 referred to as the reorganization year ), any corporation certificate issued to the other corporation, or, if there is more than one, to any of the other corporations, for any of its taxation years that is the reorganization year, the year referred to in subparagraph 1 of that third paragraph or a year between those two taxation years, or that is deemed to have been issued to the corporation because of this paragraph, is, subject to the second paragraph, deemed to have been issued to the particular corporation for the same taxation year. This paragraph is deemed to have applied before 1 January 2011 in respect of any other corporation resulting from a corporate reorganization, if a corporation certificate was issued to the other corporation before that date.
However, if a corporation certificate that was issued to a given corporation and to which the first paragraph would otherwise apply is revoked by Investissement Québec, none of the corporation certificates that were issued, or that are deemed to have been issued, to the given corporation are deemed to have been issued to the particular corporation under the first paragraph.
If, at a particular time, the application of the second paragraph causes the conditions of subparagraphs 1 and 2 of the third paragraph of section 7.2 to cease to be met in respect of the particular corporation for a particular taxation year, any certificate issued to the particular corporation is deemed to be revoked by Investissement Québec at that time. In such a case, the effective date of the deemed revocation is the date of coming into force of the certificate that is revoked.
In this section and in section 7.4, corporate reorganization means
(1) an amalgamation of corporations;
(2) the winding-up of a wholly-owned subsidiary into its parent; or
(3) a reorganization in the course of which a corporation transfers to another corporation all of its activities referred to in the unrevoked corporation certificate issued to the corporation for the taxation year that includes the time of the transfer, which time is considered to be the time of the reorganization, provided that all the issued shares of each class of shares of the capital stock of each of the two corporations that are parties to the transfer are owned by the same person or are owned by the same group of persons and are distributed among its members in such a manner that the proportion of issued shares of any class of shares of the capital stock of either of the two corporations that are owned by each member is identical to the proportion of issued shares of the corresponding class of shares of the capital stock of the other corporation that are owned by that member.
For the purposes of subparagraph 2 of the fourth paragraph, a corporation is a wholly-owned subsidiary of another corporation (in this section referred to as the parent ), if at least 90% of all the issued shares of each class of shares of its capital stock are owned by the parent.
For the purposes of the first paragraph and of section 7.4, either the parent or the other corporation referred to in subparagraph 3 of the fourth paragraph is considered to be the corporation resulting from a corporate reorganization, depending on whether the reorganization is described in subparagraph 2 or 3 of that fourth paragraph.
The corporation certificate held for the reorganization year by the corporation that transferred all its activities referred to in the certificate is deemed to be revoked by Investissement Québec as of the time of the reorganization. However, this presumption does not apply in respect of the second paragraph.
DIVISION II
CORPORATION CERTIFICATE
7.4. A particular corporation certificate issued to a corporation for a taxation year certifies that at least 75% of the activities carried on by the corporation in the premises it occupies in E-Commerce Place for the year consist in developing and supplying products and services relating to e-business or are activities relating to the operation of e-business solutions. The particular certificate also lists the corporation’s activities that are recognized as such.
If the corporation is a particular corporation referred to in the first paragraph of section 7.3 for the taxation year, the particular certificate must specify the time of the corporate reorganization as well as the names of all other corporations holding a valid corporation certificate for the reorganization year which, at the time of issue, had not been revoked by Investissement Québec. It also specifies, if applicable, for each of the other corporations listed in the certificate that, for a preceding taxation year, was itself a particular corporation referred to in the first paragraph of section 7.3, both the time of the preceding reorganization from which it resulted and the names of all other corporations holding a valid corporation certificate for the year of that preceding reorganization which, at the time of issue, had not been revoked by Investissement Québec.
If part of the premises is not yet available for occupation, the corporation must establish to Investissement Québec’s satisfaction that it has entered into a lease to occupy that part of the premises at the earliest date possible. Once that fact is established, the corporation is deemed, for the purposes of the first paragraph, to carry on, in that part of the premises and throughout the period during which it may not occupy it, the activities that it carries on elsewhere and that are listed in the particular certificate.
7.5. Subject to section 7.7, each of the following activities is an activity consisting in developing and supplying products and services relating to e-business:
(1) consulting in information technology or e-business solutions and processes;
(2) the development, integration or implementation of information systems or technology infrastructures;
(3) the design or development of e-commerce solutions;
(4) the development of security services relating to e-commerce activities;
(5) the development of distribution software packages; and
(6) the development of electronic banking relating to e-commerce activities.
7.6. Subject to section 7.7, each of the following activities is an activity relating to the operation of e-business solutions:
(1) the processing of electronic transactions through a transactional website; and
(2) the management, operation, maintenance or evolution of systems, applications or infrastructures, namely,
(a) the management of processing centres relating to e-business,
(b) the management of remote operation centres,
(c) the maintenance or evolution of e-business applications or solutions,
(d) the management of local or wide area networks,
(e) the operation of 24/7 technical assistance services to businesses and customers,
(f) the management of customer service centres deriving from e-commerce activities,
(g) the operation of technological outsourcing services, and
(h) the operation of business process outsourcing services relating to the operation of an e-business solution (back office), or the management of business processes in connection with the internal operation of an e-business solution (internal back office) if those processes involve the centralization, consolidation and coordination of back office activities of the corporation in the same place and if the centralization of the corporation’s business processes allows more than one of its establishments in Québec and elsewhere to be served.
7.7. The following activities are neither activities consisting in developing and supplying products and services relating to e-business, nor activities relating to the operation of e-business solutions:
(1) the repair, maintenance and reconditioning of hardware or equipment;
(2) the manufacturing of machines, instruments, components, parts, hardware or equipment;
(3) the assembly of parts or components, such as the assembly of television sets, computer monitors, calculators or cash registers;
(4) audio or video signal distribution services via television broadcasting, telephony, cable broadcasting, satellites or other cellular networks;
(5) the operation of radio or television broadcasting satellites, studios or networks;
(6) cinematography, including postproduction, and audiovisual production, including television programs, that do not relate to a global e-business solution;
(7) teleconferencing services;
(8) an Internet access service, unless it is provided in the course of supplying an e-business solution;
(9) the publishing of books or newspapers and the production of disks;
(10) training provided by a specialized school or body;
(11) a telemarketing activity;
(12) an activity relating to surveys; and
(13) the business processes relating to human resources management, credit card processing and any activity that does not refer to an e-business activity or to the management, maintenance or evolution of centralized computerized systems or infrastructures.
DIVISION III
EMPLOYEE CERTIFICATE
7.8. An employee certificate issued to a corporation certifies that the individual referred to in the certificate is recognized as an eligible employee of the corporation for the taxation year for which the application for the certificate was made or for the part of the year specified in it.
7.9. An individual may be recognized as an eligible employee of a corporation, if
(1) the individual works full-time for the corporation, that is, at least 26 hours per week, for an expected minimum period of 40 weeks;
(2) all or substantially all of the individual’s duties consist in undertaking, supervising or directly supporting work relating to an activity of the corporation referred to in section 7.5 or 7.6; and
(3) the individual performs his or her duties either in the corporation’s premises that are situated in E-Commerce Place, or elsewhere but in connection with contracts attributable to the business carried on by the corporation in those premises.
For the purposes of subparagraph 2 of the first paragraph, an individual’s administrative tasks are not to be considered as part of duties consisting in undertaking, supervising or directly supporting work relating to an activity of the corporation referred to in section 7.5 or 7.6.
In this section, administrative tasks include tasks relating to commercialization, operations management, accounting, finance, legal affairs, public relations, communications, contract solicitation, and human and physical resources management.
7.10. The number of employee certificates that Investissement Québec may issue to a corporation for a taxation year may not exceed the result obtained by dividing the total area of the premises occupied by the corporation in E-Commerce Place by the area of the average reasonable space intended for the exclusive use of an individual recognized as an eligible employee of the corporation for the year and that is needed by that individual to perform his or her duties.
The area of the average reasonable space is assessed taking into account the nature of the duties performed and the proportion that, for the same work shift, each type of work station of the corporation for which an employee certificate may be issued is of all such work stations.
7.11. If an individual is temporarily absent from work for reasons it considers reasonable, Investissement Québec may, for the purpose of determining whether the individual meets the conditions for recognition as an eligible employee of a corporation, consider that the individual continued to perform his or her duties throughout the period of absence exactly as he or she was performing them immediately before the beginning of that period.
CHAPTER VIII
SECTORAL PARAMETERS OF TAX CREDIT FOR MAJOR EMPLOYMENT-GENERATING PROJECTS
DIVISION I
INTERPRETATION AND GENERAL
8.1. In this chapter, unless the context indicates otherwise,
eligible contract of a corporation means a contract that is entered into by the corporation and that is recognized as an eligible contract under a current certificate issued in its respect;
qualifying period of a corporation, in relation to a contract, means, depending on whether the first day on which activities in connection with the contract are carried on is or is not prior to 2 January 2007, the 24- or 36-month period that begins
(1) if the corporation certificate in relation to the contract was issued to the corporation after 19 December 2007, on 31 December 2008 or, if it is earlier, on that first day, or
(2) in any other case, on that first day;
tax credit for major employment-generating projects means the fiscal measure provided for in Division II.6.0.1.8 of Chapter III.1 of Title III of Book IX of Part I of the Taxation Act, under which a corporation is deemed to have paid an amount to the Minister of Revenue on account of its tax payable under that Part for a taxation year.
8.2. To benefit from the tax credit for major employment-generating projects, in relation to a particular contract, a corporation must obtain the following certificates from Investissement Québec:
(1) a certificate in respect of the corporation, in relation to the particular contract (in this chapter referred to as a corporation certificate );
(2) a certificate in respect of the particular contract (in this chapter referred to as a contract certificate ); and
(3) a certificate in respect of each individual for whom, in relation to the particular contract, the corporation claims the tax credit (in this chapter referred to as an employee certificate ).
Employee certificates must be obtained for each taxation year for which the corporation intends to benefit from the tax credit. However, Investissement Québec may not issue an employee certificate to a corporation for a taxation year that begins after 31 December 2016.
Investissement Québec may issue a certificate referred to in subparagraph 1 or 2 of the first paragraph to a corporation only if it filed an application for that purpose with Investissement Québec before 1 April 2008.
The revocation by Investissement Québec of a contract certificate in respect of a particular contract entails the revocation of the related corporation certificate. In such a case, the notice of revocation of the contract certificate is considered to be a notice of revocation of the corporation certificate as well.
Investissement Québec may issue an employee certificate to a corporation in relation to a particular contract, for a particular taxation year, only if the corporation certificate held by the corporation, in relation to the contract, is valid for all or part of the particular year.
If, at a particular time, Investissement Québec revokes a corporation certificate issued to a corporation, in relation to a particular contract, any employee certificate issued to the corporation, in relation to the contract, for a taxation year subsequent to the given year that includes the date on which the revocation becomes effective is deemed to be revoked by Investissement Québec at that time. In such a case, the effective date of the deemed revocation is the date of coming into force of the certificate that is deemed to be revoked. The same applies to such an employee certificate issued for the given year, except that the effective date of the deemed revocation is the date specified in the notice of revocation of the corporation certificate.
8.3. If the carrying out of a particular contract devolves on a particular corporation and the particular corporation resulted from a corporate reorganization involving another corporation that held, immediately before the reorganization, in relation to the particular contract, a corporation certificate and a contract certificate that had not been revoked, the following rules apply:
(1) the particular corporation, the other corporation and any other corporation involved in a preceding reorganization, in respect of which this subparagraph applied in relation to the particular contract, are, for the purpose of applying sections 8.5 and 8.16 to those corporations, deemed to be a single corporation, unless their corporation certificate, in relation to the contract, is revoked;
(2) for the purposes of the third paragraph of section 8.2, the particular corporation is deemed to have filed its application for a corporation certificate and a contract certificate, in relation to the particular contract, on or before 31 March 2008; and
(3) for the purposes of subparagraph 1 of the first paragraph of section 8.8, the particular corporation is deemed to have entered into the particular contract before 1 January 2008.
Subparagraph 1 of the first paragraph is deemed to have applied, in relation to the particular contract, before 1 January 2011 in respect of any other corporation involved in a corporate reorganization, if a corporation certificate and a contract certificate, in relation to the contract, were issued to the corporation resulting from the reorganization for a period beginning before that date.
If the reorganization is described in subparagraph 3 of the seventh paragraph, the other corporation must provide to the particular corporation a copy of any certificate, in relation to the particular contract, issued to it by Investissement Québec or, if the other corporation itself resulted from a preceding corporate reorganization, any copy of such a certificate that was provided to it by the other corporation involved in that preceding reorganization.
The corporation certificate and the contract certificate, in relation to the particular contract, held by the other corporation immediately before the reorganization are deemed to be revoked by Investissement Québec as of the time of the reorganization. The same applies to any employee certificate held by the corporation for the taxation year that ends immediately before the time of the reorganization or that includes that time.
The corporation certificate issued to the particular corporation, in relation to a particular contract entered into by the particular corporation after 31 December 2007 or following an application it filed after 31 March 2008, is deemed to be revoked by Investissement Québec as of the date of its coming into force, if, after the time of the corporate reorganization from which it resulted, Investissement Québec revokes any of the following certificates, in relation to the contract:
(1) the corporation certificate issued to another corporation referred to in subparagraph 1 of the first paragraph, following the last application for a corporation certificate that was filed before 1 April 2008;
(2) the corporation certificate issued to any other corporation referred to in that subparagraph 1, following an application filed after 31 March 2008;
(3) the corporation certificate issued to another corporation referred to in that subparagraph 1 that is the last corporation to have entered into the particular contract before 1 January 2008; or
(4) the corporation certificate issued to any other corporation referred to in that subparagraph 1 that entered into the particular contract after 31 December 2007.
The fifth paragraph does not apply if the effective date of the revocation of any of the certificates referred to in subparagraphs 1 to 4 of that paragraph precedes the time of the corporate reorganization in which the other corporation is involved.
In this section, corporate reorganization means
(1) an amalgamation of corporations;
(2) the winding-up of a wholly-owned subsidiary into its parent; or
(3) the carrying on, as of a particular time, of a business by a corporation, if the business was, immediately before that time, carried on by another corporation and the other corporation was carrying out, in the course of the business, a contract that was an eligible contract of the other corporation.
For the purposes of subparagraph 2 of the seventh paragraph, a corporation is a wholly-owned subsidiary of another corporation (in this chapter referred to as the parent ) if at least 90% of all the issued shares of each class of shares of its capital stock are owned by the parent.
For the purposes of this chapter, either the parent or the corporation described in subparagraph 3 of the seventh paragraph is considered to be the corporation resulting from a corporate reorganization, depending on whether the reorganization is described in subparagraph 2 or 3 of that paragraph.
DIVISION II
CORPORATION CERTIFICATE
8.4. A corporation certificate issued to a corporation, in relation to a particular contract, certifies that the corporation operates in the field of information technologies under the contract. The corporation certificate also confirms that, in the opinion of Investissement Québec, the carrying out of the contract will result in the creation of at least 150 jobs in the 36-month period that is specified in the corporation certificate and that begins on the earlier of
(1) 31 December 2008; and
(2) the date on which activities in connection with the contract are first carried on.
However, if the corporation certificate, in relation to a contract, is issued to a particular corporation resulting from a corporate reorganization described in the seventh paragraph of section 8.3, Investissement Québec must instead specify in the corporation certificate the 24- or 36-month period that applied to the other corporation involved in the reorganization, in relation to the contract.
8.5. Investissement Québec is justified in revoking a corporation certificate, in relation to a particular contract, issued to a corporation, if it is evident, at the end of the corporation’s qualifying period in relation to the contract, that the number of jobs created, during that period, because of the carrying out of the contract, did not exceed 149 at any time. The effective date of the revocation is the date of coming into force of the corporation certificate.
If a corporation certificate, in relation to a particular contract, issued to a corporation is revoked at a particular time by Investissement Québec under the first paragraph, the contract certificate in respect of the contract and any employee certificate, in relation to the contract, issued to the corporation are deemed to be revoked at that time by Investissement Québec. The effective date of each deemed revocation is the date of coming into force of the certificate that is deemed to be revoked.
8.6. To determine whether a corporation meets the job creation requirement to which sections 8.4 and 8.5 refer, in relation to a particular contract, Investissement Québec must only count the number of jobs created each of which is held by an individual in respect of whom an employee certificate has been issued to the corporation, in relation to the contract.
However, the first paragraph applies with reference to the following rules:
(1) if an employee certificate in respect of an individual could be issued to the corporation, in relation to the particular contract, but for section 8.18, Investissement Québec may count the job held by the individual; and
(2) if, in any period, the corporation carries out two or more particular contracts that are eligible contracts of the corporation and two or more employee certificates are issued to it in respect of the same individual who works for the corporation, in relation to the particular contracts, Investissement Québec may only count the job held by the individual in relation to one of those contracts.
DIVISION III
CONTRACT CERTIFICATE
8.7. A contract certificate issued to a corporation certifies that the contract referred to in the certificate is recognized as an eligible contract. It also lists the activities carried on under the contract.
8.8. A contract entered into by a corporation may be recognized as an eligible contract, if
(1) the contract is entered into after 31 December 2004 and before 1 January 2008;
(2) the activities carried on under the contract consist in
(a) developing and supplying products and services relating to e-business;
(b) activities relating to the operation of e-business solutions; or
(c) activities of a customer relations centre that provides support, at a transactional level, to a sales and marketing service and whose technological environment uses various media in the context of technological convergence in computer telephony;
(3) the majority of the activities carried on under the contract are not activities in respect of which the corporation avails itself of a fiscal measure referred to in another chapter of this schedule; and
(4) subject to the second paragraph, the contract is not a subcontract entered into with a person or partnership with whom the corporation is not dealing at arm’s length.
Subparagraph 4 of the first paragraph does not apply if
(1) the corporation establishes to Investissement Québec’s satisfaction that the contract relates to services that are ultimately provided to a customer who is a person or partnership with whom the corporation is dealing at arm’s length and that relate to a business all or substantially all of which is carried on outside Québec by the customer; and
(2) the activity subcontracted to the corporation under the contract was not carried on in Québec before the contract was entered into.
8.9. Subject to section 8.12, each of the following activities consist in developing and supplying products and services relating to e-business:
(1) consulting in information technology or e-business solutions and processes;
(2) the development, integration or implementation of information systems or technology infrastructures;
(3) the design or development of e-commerce solutions;
(4) the development of security services relating to e-commerce activities;
(5) the development of distribution software packages; and
(6) the development of electronic banking relating to e-commerce activities.
8.10. Subject to section 8.12, each of the following activities is an activity relating to the operation of e-business solutions:
(1) the processing of electronic transactions through a transactional website; and
(2) the management, operation, maintenance or evolution of systems, applications or infrastructures, namely,
(a) the management of processing centres relating to e-business,
(b) the management of remote operation centres,
(c) the maintenance or evolution of e-business applications or solutions,
(d) the management of local or wide area networks,
(e) the operation of technological outsourcing services, and
(f) the operation of business process outsourcing services relating to the operation of an e-business solution (back office), or the management of business processes in connection with the internal operation of an e-business solution (internal back office) if those processes involve the centralization, consolidation and coordination of back office activities of the corporation in the same place and if the centralization of the corporation’s business processes allows more than one of its establishments in Québec and elsewhere to be served.
8.11. Subject to the second paragraph and section 8.12, each of the following activities is an activity related to the operation of a customer relations centre:
(1) e-commerce customer relations management, if the products sold are related to information technologies;
(2) technical assistance to businesses and customers (help desk) related to the use of an e-business solution or of a product that supports such a solution, provided such assistance relates to the technical aspects of the product; and
(3) customer service directly related to the use of an e-commerce solution.
An activity described in the first paragraph is considered to be an activity related to the operation of a corporation’s customer relations centre only if
(1) the corporation carries on activities consisting mostly in dealing with incoming calls, unless the corporation provides e-commerce customer relations management services;
(2) the corporation carries on activities in a specialized field and its employees have specialized training; and
(3) the corporation’s technological environment uses various media, allowing for the convergence of new technologies.
An activity described in subparagraph 2 of the first paragraph does not include the management of subscriptions to a cellular telephony service, such as the management of plan changes and the management of the warranties of a product that supports an e-business solution.
8.12. The following activities are neither activities consisting in developing and supplying products and services relating to e-business, nor activities related to the operation of e-business solutions, nor activities related to the operation of a customer relations centre:
(1) the installation, repair, maintenance and reconditioning of hardware or equipment;
(2) the manufacturing of machines, instruments, components, parts, hardware or equipment;
(3) the assembly of parts or components, such as the assembly of television sets, computer monitors, calculators or cash registers;
(4) traditional audio or video signal distribution services via television broadcasting, telephony, cable broadcasting, satellites or other cellular networks that do not support e-business solutions;
(5) the operation of radio or television broadcasting satellites, studios or networks;
(6) cinematography, including postproduction, and audiovisual production, including television programs, that do not relate to a global e-business solution;
(7) teleconferencing services;
(8) the publishing of books or newspapers, and the production of disks, with a view to commercializing, promoting and financing applications;
(9) training provided by a specialized school or body;
(10) a telemarketing activity;
(11) an activity relating to surveys; and
(12) the business processes relating to human resources management, credit card processing and any activity that does not refer to an e-business activity or to the management, maintenance or evolution of centralized computerized systems or infrastructures.
DIVISION IV
EMPLOYEE CERTIFICATE
8.13. An employee certificate issued to a corporation, in relation to a particular contract, certifies that the individual referred to in the certificate is recognized as an eligible employee of the corporation, in relation to the contract, for the taxation year for which the application for the certificate was made or for the part of the year specified in it.
8.14. An individual may be recognized as an eligible employee of a corporation, in relation to a particular contract, if
(1) the individual works full-time for the corporation, that is, at least 26 hours per week, for an expected minimum period of 40 weeks;
(2) at least 75% of the individual’s duties consist in undertaking, supervising or directly supporting activities carried on under one or more eligible contracts of the corporation; and
(3) the particular contract is an eligible contract referred to in subparagraph 2.
For the purposes of subparagraph 2 of the first paragraph, an individual’s administrative tasks are not to be considered as part of duties consisting in undertaking, supervising or directly supporting activities carried on under an eligible contract of the corporation.
In this section, administrative tasks include tasks relating to commercialization, operations management, accounting, finance, legal affairs, public relations, communications, contract solicitation, and human and physical resources management.
8.15. If an individual is temporarily absent from work for reasons it considers reasonable, Investissement Québec may, for the purpose of determining whether the individual meets the conditions for recognition as an eligible employee of a corporation, consider that the individual continued to perform his or her duties throughout the period of absence exactly as he or she was performing them immediately before the beginning of that period.
8.16. Investissement Québec may not, for a particular period, issue any employee certificate to a corporation, in relation to a particular contract if, during that particular period, which is included in the job maintenance period, in relation to the contract, determined in accordance with the second paragraph, the corporation does not maintain at least 150 jobs that relate to the activities carried on under the contract.
The job maintenance period, in relation to a particular contract entered into by a corporation, is the period beginning on the last day, included in the corporation’s qualifying period, in relation to the contract, where at least 150 jobs created by the corporation during the qualifying period were held by individuals whose duties with the corporation were related to the activities carried on under the contract, and ending
(1) where a reduced activity period is determined in accordance with the third paragraph, in relation to the particular contract, on the day that precedes the day on which the reduced activity period begins; and
(2) in any other case, on the last day during which the corporation carried on activities under the particular contract.
Subject to the fourth paragraph, a corporation’s reduced activity period, in relation to a particular contract, is
(1) where the contract has an expected term of four years or less, the period, if any, not exceeding six months that ends on the day specified in the particular contract as the last day for its carrying out and that begins after the end of the corporation’s qualifying period in relation to the contract; and
(2) in any other case, the 12-month period ending on
(a) 31 December 2016, if the particular contract has an indefinite term, or
(b) the day specified in the particular contract as the last day for its carrying out, if it has a set term.
However, no reduced activity period is determined, in relation to a particular contract entered into by a corporation, if the corporation failed to maintain at least 150 jobs that relate to the activities carried on under the contract, for at least half of the 12-month period ending on the day preceding the day on which the reduced activity period, in relation to the contract, would otherwise have begun. The same applies if, before the day on which the reduced activity period would otherwise have begun, the corporation prematurely terminates the carrying out of the particular contract before 1 January 2017, either because the corporation has been placed under a receiving order issued under the Bankruptcy and Insolvency Act (R.S.C. 1985, c. B-3) or has made an assignment of property under that Act, or by reason of superior force or any other event that affected it.
8.17. In determining the number of jobs that relate to the carrying on of activities under a particular contract, Investissement Québec must only count the number of jobs each of which is held by an individual who meets the conditions of section 8.14, in relation to the contract, for recognition as an eligible employee of the corporation. However, if the corporation carries out, in any period, two or more particular contracts that are eligible contracts of the corporation and an individual who works for it meets the conditions of section 8.14 in relation to those particular contracts, Investissement Québec may only count the job held by the individual in relation to one of those contracts.
8.18. Investissement Québec may not issue an employee certificate in respect of an individual to a corporation for a taxation year or part of the taxation year, if such a certificate in respect of the individual has been issued, for the same year or part of year, under another chapter of this schedule.
CHAPTER IX
SECTORAL PARAMETERS OF TAX HOLIDAYS AND TAX CREDITS TO FOSTER DEVELOPMENT OF NEW ECONOMY
DIVISION I
INTERPRETATION AND GENERAL
9.1. In this chapter, unless the context indicates otherwise,
biotechnology development centre means a set of buildings or parts of a building each of which meets the following conditions:
(1) it has been designated as forming part of one of the centres mentioned in the first paragraph of section 9.5 either by Investissement Québec after 31 December 2010 under that paragraph, or by Investissement Québec or the Minister of Finance before 1 January 2011;
(2) the designation has not been cancelled; and
(3) it is located at one of the addresses mentioned in respect of that centre in the third paragraph of section 9.5;
Centre national des nouvelles technologies de Québec means all of the buildings and parts of a building each of which is located at one of the addresses mentioned in the third paragraph of section 9.7 and meets the following conditions:
(1) it was designated as forming part of that centre either by Investissement Québec after 31 December 2010 under the first paragraph of section 9.7, or by Investissement Québec or the Minister of Finance before 1 January 2011; and
(2) the designation has not been cancelled;
Cité du multimédia means all of the buildings each of which is located in Montréal at
(1) 711 or 731, rue de la Commune;
(2) 10 or 111, rue Duke;
(3) 33 or 87, rue Prince;
(4) 50, 75 or 80, rue Queen; or
(5) 700, rue Wellington;
designated site means
(1) a biotechnology development centre;
(2) a new economy centre;
(3) the Centre national des nouvelles technologies de Québec; or
(4) the Cité du multimédia;
fiscal measure relating to an innovative project means any of the following fiscal measures that a corporation holding a certificate for carrying on a business in a qualified centre referred to in the first paragraph of section 9.2 may benefit from:
(1) a tax credit on qualified wages;
(2) a tax credit relating to the acquisition or rental of property;
(3) a tax credit relating to the rental of an eligible facility;
(4) the fiscal measure provided for in sections 771, 771.1.1, 771.8.5, 771.12 and 771.13 of the Taxation Act, which allows the corporation to deduct an amount under subparagraphs i to iii of paragraph j of subsection 1 of section 771 of that Act in computing its tax payable for a taxation year under Part I of that Act;
(5) the fiscal measure provided for in section 1138.2.1 of the Taxation Act, under which the corporation may deduct an amount in computing its paid-up capital for a taxation year; and
(6) the fiscal measure provided for in sections 33 and 34 of the Act respecting the Régie de l’assurance maladie du Québec, which allows the corporation to obtain a contribution exemption under subparagraphs a and a.1 of the seventh paragraph of section 34 of that Act;
information technology development centre means one or more of the following buildings or parts of a building:
(1) in the case of the centre in Gatineau, the buildings located at 200, rue Montcalm and at 490, boulevard Saint-Joseph;
(2) in the case of the centre in Laval, the building located at 440, boulevard Armand-Frappier;
(3) in the case of the centre in Montréal, all of the buildings or parts of a building designated by the Minister of Finance as forming part of the centre, each of which is located at one of the addresses mentioned in the definition of Cité du multimédia ;
(4) in the case of the centre in Québec, all of the buildings or parts of a building designated by the Minister of Finance as forming part of the centre, each of which is located at one of the addresses mentioned in the third paragraph of section 9.7; and
(5) in the case of the centre in Sherbrooke, the buildings located at 740, rue Galt Ouest and at 2424, rue King Ouest;
new economy centre means a set of buildings or parts of a building each of which meets the following conditions:
(1) it was designated as forming part of one of the centres listed in the second paragraph of section 9.6 either by Investissement Québec after 31 December 2010 under the first paragraph of that section, or by Investissement Québec or the Minister of Finance before 1 January 2011; and
(2) the designation has not been cancelled;
qualified centre means
(1) a biotechnology development centre;
(2) an information technology development centre; or
(3) a new economy centre;
tax credit on qualified wages means the fiscal measure provided for in Division II.6.0.3 of Chapter III.1 of Title III of Book IX of Part I of the Taxation Act, which allows a corporation carrying on its business in a qualified centre to be deemed under section 1029.8.36.0.19, 1029.8.36.0.20 or 1029.8.36.0.30 of that division to have paid an amount to the Minister of Revenue on account of its tax payable under that Part for a taxation year;
tax credit on specified wages means the fiscal measure provided for in Division II.6.0.3 of Chapter III.1 of Title III of Book IX of Part I of the Taxation Act, which allows a corporation carrying on its business in a designated site to be deemed under section 1029.8.36.0.22 or 1029.8.36.0.31 of that division to have paid an amount to the Minister of Revenue on account of its tax payable under that Part for a taxation year;
tax credit relating to the acquisition or rental of property means the fiscal measure provided for in Division II.6.0.3 of Chapter III.1 of Title III of Book IX of Part I of the Taxation Act, which allows a corporation carrying on a business in a qualified centre to be deemed under section 1029.8.36.0.25 or 1029.8.36.0.32 of that division to have paid an amount to the Minister of Revenue on account of its tax payable under that Part for a taxation year;
tax credit relating to the new economy means a fiscal measure that a corporation holding a certificate referred to in subparagraph 1 of the first paragraph of section 9.3 may benefit from and that is
(1) if the corporation carries on a business in a biotechnology development centre, any of the following fiscal measures:
(a) a tax credit on specified wages,
(b) a tax credit relating to the acquisition or rental of property, and
(c) a tax credit relating to the rental of an eligible facility; and
(2) in any other case, a tax credit on specified wages;
tax credit relating to the rental of an eligible facility means the fiscal measure provided for in Division II.6.0.3 of Chapter III.1 of Title III of Book IX of Part I of the Taxation Act, which allows a corporation carrying on a business in a biotechnology development centre to be deemed under section 1029.8.36.0.25.1 or 1029.8.36.0.32.1 of that division to have paid an amount to the Minister of Revenue on account of its tax payable under that Part for a taxation year.
9.2. To benefit from a fiscal measure relating to an innovative project, a corporation must hold a valid certificate for carrying on a business in a qualified centre (in this chapter referred to as an exempt corporation certificate ). In the case of the tax credit relating to the acquisition or rental of property, the corporation must also hold a valid certificate in respect of each property for which it claims the tax credit (in this chapter referred to as a property certificate ).
If the fiscal measure is the tax credit on qualified wages, the corporation must obtain a certificate from Investissement Québec in respect of each individual for whom it claims the tax credit (in this chapter referred to as an eligible employee certificate ). Such certificates must be obtained for each taxation year for which the corporation intends to claim the tax credit.
If the corporation carries on a business in a biotechnology development centre, the corporation must, to benefit from the tax credit relating to the rental of an eligible facility, obtain from the person who owns the facility, in relation to the centre, for which the corporation claims the tax credit a copy of the certificate relating to the facility that the person obtained from Investissement Québec (in this chapter referred to as a facility certificate ).
However, Investissement Québec may not, for a particular taxation year, issue a certificate referred to in the second paragraph to a corporation unless, at the time the certificate is to be issued, the exempt corporation certificate held by the corporation is still valid or the date of coming into force of its revocation is subsequent to the first day of the particular taxation year.
9.3. To benefit from a tax credit relating to the new economy, a corporation must obtain the following certificates from Investissement Québec:
(1) a certificate for carrying out an activity that relates to the new economy in a designated site (in this chapter referred to as a specified corporation certificate ); and
(2) a certificate in respect of its activities that relate to the new economy, in relation to a designated site in which it carries on a business (in this chapter referred to as an activities certificate ).
Depending on which tax credit relating to the new economy the corporation intends to benefit from, the corporation must obtain one or more of the following certificates from Investissement Québec:
(1) in the case of the tax credit on specified wages, a certificate in respect of each individual for whom the corporation claims the tax credit (in this chapter referred to as a specified employee certificate ); and
(2) if the corporation carries on a business in a biotechnology development centre and the tax credit concerned is the tax credit relating to the acquisition or rental of property, a property certificate in respect of each property for which the corporation claims the tax credit.
The certificates referred to in the first paragraph must be obtained for each taxation year for which the corporation intends to claim a tax credit relating to the new economy. Similarly, the certificate referred to in subparagraph 1 of the second paragraph must be obtained for each taxation year for which the corporation intends to benefit from the tax credit in respect of wages that relates to the new economy.
However, Investissement Québec may not, for a particular taxation year, issue a certificate referred to in the first paragraph and subparagraph 1 of the second paragraph to a corporation that holds an exempt corporation certificate issued following an application filed on or before 11 June 2003 and, after that date, either was entitled to obtain a specified corporation certificate because of subparagraph f of the first paragraph of section 771.13 of the Taxation Act or elected to become a corporation holding such a certificate, unless
(1) a specified corporation certificate was issued to the corporation for the preceding taxation year that is the particular year referred to in the seventh paragraph of section 9.25 or the year for which it made the election, as the case may be;
(2) a specified corporation certificate was issued to the corporation for each taxation year that is between that preceding year and the particular year; and
(3) at the time the certificates are to be issued for the particular year, none of the following certificates have been revoked:
(a) the exempt corporation certificate; and
(b) the certificates referred to in subparagraphs 1 and 2.
Similarly, Investissement Québec may not, for a particular taxation year, issue a certificate referred to in the first paragraph and subparagraph 1 of the second paragraph to a corporation that is not referred to in the fourth paragraph, unless
(1) a specified corporation certificate was issued to the corporation for the most recent preceding taxation year for which the corporation filed a written application for that purpose before 12 June 2003;
(2) a specified corporation certificate was issued to the corporation for each taxation year that is between that preceding year and the particular year; and
(3) at the time the certificates are to be issued for the particular year, none of the certificates referred to in subparagraphs 1 and 2 have been revoked.
If, at a particular time, Investissement Québec revokes the exempt corporation certificate issued to the corporation referred to in the fourth paragraph, any certificate referred to in the first paragraph and subparagraph 1 of the second paragraph issued to the corporation for a taxation year following an application filed after 11 June 2003 is deemed to be revoked by Investissement Québec at that time. If, at a particular time, Investissement Québec revokes a specified corporation certificate issued to the corporation referred to in the fourth or fifth paragraph for a given taxation year that, if the corporation is referred to in the fifth paragraph, does not precede the taxation year referred to in subparagraph 1 of that paragraph, the same applies in respect of any certificate issued to the corporation for a taxation year following the given year. In such cases, the effective date of the deemed revocation is the date of coming into force of the certificate that is deemed to be revoked. Any specified employee certificate and any activities certificate issued for the given year are also deemed to be revoked by Investissement Québec at that time, except that the effective date of their deemed revocation is the date specified in the notice of revocation of the specified corporation certificate.
The revocation by Investissement Québec of the exempt corporation certificate issued to a corporation gives rise to the application of the presumption in the sixth paragraph only if the date on which the revocation becomes effective precedes the date of coming into force of the election referred to in the fourth paragraph.
If the corporation carries on a business in a biotechnology development centre, the sixth paragraph applies only in respect of a certificate issued to it for a taxation year that begins before 31 March 2004 whose date of coming into force precedes that date. The same applies to the fourth and fifth paragraphs, which only operate for the purposes of the sixth paragraph. However, when the sixth paragraph applies to a taxation year that includes 31 March 2004, it is to be read as follows:
If, at a particular time, Investissement Québec revokes the exempt corporation certificate issued to the corporation referred to in the fourth paragraph, any certificate referred to in the first paragraph and subparagraph 1 of the second paragraph issued to the corporation for the taxation year that includes 31 March 2004 is deemed to be amended by Investissement Québec at that time to replace the date of its coming into force by 31 March 2004. If, at a particular time, Investissement Québec revokes a specified corporation certificate issued to the corporation referred to in the fourth or fifth paragraph for a given taxation year that, if the corporation is referred to in the fifth paragraph, does not precede the taxation year referred to in subparagraph 1 of that paragraph, the same applies in respect of any certificate issued to the corporation for the taxation year that is subsequent to the given year and includes 31 March 2004.
To benefit from the tax credit relating to the rental of an eligible facility, the corporation carrying on a business in a biotechnology development centre must obtain from the person who owns the facility for which the corporation claims the tax credit a copy of the facility certificate that the person obtained from Investissement Québec in respect of the facility.
9.4. For the purpose of applying, for a particular taxation year, the fourth or fifth paragraph of section 9.3 in respect of a particular corporation resulting from a corporate reorganization involving at least one other corporation that held a valid specified corporation certificate for its taxation year that ended immediately before the time of the reorganization or included that time (in this section and in section 9.25 referred to as the reorganization year ), one or more of the following presumptions apply, as the case may be:
(1) where the other corporation or, if there are more than one, any of the other corporations is referred to in the fourth paragraph of section 9.3 or is deemed to hold an exempt corporation certificate because of the application of this subparagraph, the exempt corporation certificate held or deemed to be held by that corporation is, subject to the third paragraph, deemed to be held by the particular corporation, and each of the specified corporation certificates that were issued to it or are deemed to have been issued to it because of the application of this subparagraph is, subject to the third paragraph, deemed to have been issued to the particular corporation;
(2) where subparagraph 1 does not apply in respect of the other corporation or, if there are more than one, in respect of any of the other corporations, any specified corporation certificate that was issued to the corporation for any of its taxation years that is the reorganization year, the year referred to in subparagraph 1 of the fifth paragraph of section 9.3 or a year between those two taxation years, or that is deemed to have been issued to the corporation for such a year because of the application of this subparagraph, is, subject to the third paragraph, deemed to have been issued to the particular corporation for the same taxation year.
The first paragraph is deemed to have applied before 1 January 2011 in respect of any other corporation resulting from a corporate reorganization, if a specified corporation certificate was issued to that other corporation before that date.
If the exempt corporation certificate held by a given corporation, or a specified corporation certificate issued to it that would otherwise be referred to in the first paragraph is revoked by Investissement Québec, one of the following rules applies, as the case may be:
(1) in the case of the revocation of the exempt corporation certificate, neither that certificate nor any of the specified corporation certificates issued to the given corporation is deemed to be held by, or to have been issued to, the particular corporation under subparagraph 1 of the first paragraph;
(2) in the case of the revocation of a specified corporation certificate referred to in subparagraph 1 of the first paragraph, neither the exempt corporation certificate held or deemed to be held by the given corporation, nor any of the specified corporation certificates that were issued or are deemed to have been issued to it is deemed to be held by, or to have been issued to, the particular corporation under that subparagraph 1;
(3) in the case of the revocation of a specified corporation certificate referred to in subparagraph 2 of the first paragraph, none of the specified corporation certificates that were issued or are deemed to have been issued to the given corporation are deemed to have been issued to the particular corporation under that subparagraph 2.
However, the revocation by Investissement Québec of the exempt corporation certificate held by a given corporation gives rise to the application of the third paragraph only if the effective date of the revocation precedes the date of the acquisition of control referred to in the seventh paragraph of section 9.25 or before the date of coming into force of the election referred to in the fourth paragraph of section 9.3.
If, at a particular time, because of the application of the third paragraph, the particular corporation can no longer meet, for a particular taxation year, neither the conditions of subparagraphs 1 and 2 of the fourth paragraph of section 9.3 nor the conditions of subparagraphs 1 and 2 of the fifth paragraph of that section, any certificate described in the first paragraph of section 9.3 or in subparagraph 1 of the second paragraph of that section that was issued to it is deemed to be revoked by Investissement Québec at that time. In such a case, the effective date of the deemed revocation is the date of coming into force of the certificate that is deemed to be revoked.
In this section and in section 9.25, corporate reorganization means
(1) an amalgamation of corporations;
(2) the winding-up of a wholly-owned subsidiary into its parent; or
(3) a reorganization in the course of which a corporation transfers to another corporation all of its activities referred to in the unrevoked activities certificate issued to the corporation for the taxation year that includes the time of the transfer, which time is considered to be the time of the reorganization, provided that all the issued shares of each class of shares of the capital stock of each of the two corporations that are parties to the transfer are owned by the same person or are owned by the same group of persons and are distributed among its members in such a manner that the proportion of issued shares of any class of shares of the capital stock of either of the two corporations that are owned by each member is identical to the proportion of issued shares of the corresponding class of shares of the capital stock of the other corporation that are owned by that member.
For the purposes of subparagraph 2 of the sixth paragraph, a corporation is a wholly-owned subsidiary of another corporation (in this section referred to as the parent ), if at least 90% of all the issued shares of each class of shares of its capital stock are owned by the parent.
For the purposes of this section and of section 9.25, either the parent or the other corporation referred to in subparagraph 3 of the sixth paragraph is considered to be the corporation resulting from a corporate reorganization, depending on whether the reorganization is described in subparagraph 2 or 3 of that sixth paragraph.
The specified corporation certificate held for the reorganization year by the corporation that transferred all its activities referred to in the valid activities certificate it holds for the same year is deemed to be revoked by Investissement Québec as of the time of the reorganization. However, this presumption does not apply in respect of the third paragraph.
DIVISION II
DESIGNATION OF QUALIFIED CENTRE OR DESIGNATED SITE
9.5. Subject to the second paragraph, Investissement Québec may designate a building or part of a building as forming part of one of the following centres, provided that it is located at the address or at one of the addresses mentioned in the third paragraph for each of those centres:
(1) the Centre de développement des biotechnologies de Laval;
(2) the Centre de développement des biotechnologies de Lévis;
(3) the Centre de développement des biotechnologies de Saint-Hyacinthe; and
(4) the Centre de développement des biotechnologies de Sherbrooke.
Investissement Québec may determine the maximum area of a biotechnology development centre. However, the total area of all the centres may not exceed 29,120 m2 at any time.
The address or addresses of the biotechnology development centres are:
(1) for the centre in Laval, 500, boulevard Cartier Ouest;
(2) for the centre in Lévis, 205, route Monseigneur-Bourget;
(3) for the centre in Saint-Hyacinthe, 3405, rue Casavant Ouest and 4375, avenue Beaudry; and
(4) for the centre in Sherbrooke, 3201, rue Jean-Mignault and 1580, rue Ida-Métivier.
9.6. Investissement Québec may designate a building or part of a building as forming part of a new economy centre. However, the designated maximum area may not exceed 130,000 m2 for the whole of Québec at any time.
The following, listed by administrative region, are the new economy centres that have been designated:
(1) for the Bas-Saint-Laurent region,
(a) the Centre de la nouvelle économie de La Pocatière,
(b) the Centre de la nouvelle économie de Matane,
(c) the Centre de la nouvelle économie de Rimouski, and
(d) the Centre de la nouvelle économie de Rivière-du-Loup;
(2) for the Saguenay–Lac-Saint-Jean region,
(a) the Centre de la nouvelle économie d’Alma,
(b) the Centre de la nouvelle économie de Chicoutimi,
(c) the Centre de la nouvelle économie de Jonquière;
(d) the Centre de la nouvelle économie de La Baie, and
(e) the Centre de la nouvelle économie de Saint-Félicien;
(3) for the Capitale-Nationale region, the Centre de la nouvelle économie de Pont-Rouge;
(4) for the Mauricie region,
(a) the Centre de la nouvelle économie de Grand-Mère,
(b) the Centre de la nouvelle économie de Shawinigan, and
(c) the Centre de la nouvelle économie de Trois-Rivières;
(5) for the Abitibi-Témiscamingue region, the Centre de la nouvelle économie de Rouyn-Noranda;
(6) for the Côte-Nord region,
(a) the Centre de la nouvelle économie de Baie-Comeau, and
(b) the Centre de la nouvelle économie de Sept-Îles;
(7) for the Gaspésie–Îles-de-la-Madeleine region,
(a) the Centre de la nouvelle économie de Caplan, and
(b) the Centre de la nouvelle économie de Gaspé;
(8) for the Chaudière-Appalaches region,
(a) the Centre de la nouvelle économie de Lévis,
(b) the Centre de la nouvelle économie de Saint-Georges, and
(c) the Centre de la nouvelle économie de Thetford Mines;
(9) for the Lanaudière region, the Centre de la nouvelle économie de Lachenaie;
(10) for the Laurentides region,
(a) the Centre de la nouvelle économie de Boisbriand,
(b) the Centre de la nouvelle économie de Lachute, and
(c) the Centre de la nouvelle économie de Sainte-Adèle;
(11) for the Montérégie region,
(a) the Centre de la nouvelle économie d’Acton Vale,
(b) the Centre de la nouvelle économie de Bromont,
(c) the Centre de la nouvelle économie de Longueuil,
(d) the Centre de la nouvelle économie de Mont-Saint-Hilaire,
(e) the Centre de la nouvelle économie de Saint-Hyacinthe,
(f) the Centre de la nouvelle économie de Saint-Jean-sur-Richelieu,
(g) the Centre de la nouvelle économie de Saint-Joseph-de-Sorel,
(h) the Centre de la nouvelle économie de Salaberry-de-Valleyfield, and
(i) the Centre de la nouvelle économie de Varennes; and
(12) for the Centre-du-Québec region,
(a) the Centre de la nouvelle économie de Bécancour,
(b) the Centre de la nouvelle économie de Drummondville,
(c) the Centre de la nouvelle économie de Sainte-Monique, and
(d) the Centre de la nouvelle économie de Victoriaville.
9.7. Investissement Québec may designate a building or part of a building as forming part of the Centre national des nouvelles technologies de Québec, provided that it is located at one of the addresses mentioned in the third paragraph. However, the designated maximum area may not exceed 47,900 m2 at any time.
For the purposes of the first paragraph, the 10,700-square-metre area that is attributable to the Centre de développement des technologies de l’information de Québec must not be taken into account in calculating the maximum area.
The addresses of the buildings or parts of a building that may form part of the Centre national des nouvelles technologies de Québec are the following:
(1) 350, 390, 410, 420, 570, 585, 600, 680, 750 and 820, boulevard Charest Est;
(2) 400, boulevard Jean-Lesage;
(3) 779, rue Saint-François;
(4) 335, 337, 575, 633, 683, 690, 726, 770 and 771, rue Saint-Joseph Est; and
(5) 330 and 390, rue Saint-Vallier Est.
9.8. Investissement Québec may, in relation to a designation provided for in this division, enter into an agreement with any person who owns a building included in whole or in part in a qualified centre or a designated site. It may also amend such an agreement. In addition, it is deemed to be a party to any such agreement to which the Minister of Finance is a party.
9.9. The power of Investissement Québec under this division to designate buildings or parts of a building as forming part of certain qualified centres or certain designated sites includes the power to cancel such a designation by Investissement Québec or by the Minister of Finance.
DIVISION III
EXEMPT CORPORATION CERTIFICATE
9.10. An exempt corporation certificate held by a corporation certifies that the business that the corporation declares it is carrying on is an innovative project carried out in a qualified centre.
If part of the corporation’s premises that are located in the qualified centre is not yet available for occupation, the corporation must establish to Investissement Québec’s satisfaction that it has entered into a lease to occupy that part of the premises at the earliest date possible. Once that fact is established, the corporation is deemed, for the purposes of the first paragraph, to carry out, in that part of the premises and throughout the period during which it may not occupy it, the portion of the innovative project the corporation carries out elsewhere in Québec.
The parameters provided for in this division are administered by Investissement Québec only within the scope of its powers of amendment and revocation.
9.11. To be considered an innovative project, a business must,
(1) if it is carried on in an information technology development centre or in a new economy centre, meet the following criteria:
(a) be a project in the information technology sector,
(b) include planned investigation for the purpose of acquiring new technical or scientific knowledge, or consist in work to translate research discoveries or other knowledge into applications, prior to commercial production, and
(c) have as purpose the development of a product, service or production or manufacturing process which, at the time the application for the exempt corporation certificate is filed,
i. does not exist in Québec in the form described in the business plan,
ii. has not generated income other than income incidental to its development, and
iii. is a product, service or process whose development requires specialized skills in an emerging sector; or
(2) if it is carried on in a biotechnology development centre, meet the following criteria:
(a) belong to any segment of the biotechnology sector, including human health, animal or plant agrobiotechnology, the environment, and human or animal nutrition,
(b) be in a start-up or development phase,
(c) have as purpose the discovery of a substance or the invention, improvement or development of a product, compound or process presenting a competitive advantage in Québec, and
(d) require specialized skills in a scientific or technological field whose development in Québec is considered strategic for research, development or valorization activities.
DIVISION IV
ELIGIBLE EMPLOYEE CERTIFICATE
9.12. An eligible employee certificate issued to a corporation certifies that the individual referred to in the certificate is recognized as an eligible employee of the corporation for the taxation year for which the application for the certificate was made or for the part of the year specified in it.
9.13. An individual may be recognized as an eligible employee of a corporation if
(1) the individual works full time for the corporation, that is, at least 26 hours per week, for an expected minimum period of 40 weeks;
(2) the individual’s work for the corporation allows him or her to acquire specialized skills in an emerging sector of activity;
(3) the individual performs his or her duties mainly in the qualified centre where the corporation carries on a business; and
(4) the individual is working exclusively or almost exclusively on an innovative project for which the corporation holds an exempt corporation certificate.
For the purposes of subparagraph 4 of the first paragraph, the time spent by an individual on the performance of administrative tasks is not considered to be spent on the innovative project.
In this section, administrative tasks include tasks relating to commercialization, accounting, communications, clerical support, human resources management, implementation of technology on a customer’s premises, contract solicitation, general, legal or financial services, and customer service.
9.14. For the purposes of subparagraph 3 of the first paragraph of section 9.13, an individual who works for a corporation is deemed to perform his or her duties in the qualified centre where the corporation carries on business during the period in which the individual receives refresher training outside the centre, provided all the conditions of that section are otherwise met and the individual receives his or her usual remuneration during that period.
If the qualified centre is a biotechnology development centre, the individual is deemed to perform his or her duties in the centre when using a person’s specialized facility, in relation to the centre, that the corporation is renting in the course of carrying on a business.
The individual is deemed to perform his or her duties in the qualified centre when performing them elsewhere in Québec because part of the corporation’s premises located in the centre is not available for occupation. In such a case, the presumption applies only for the period referred to in the second paragraph of section 9.10 and only if the evidence required by that paragraph is provided to Investissement Québec’s satisfaction.
9.15. The number of eligible employee certificates that Investissement Québec may issue to a corporation for a taxation year, in respect of a qualified centre where it carries on a business, may not exceed the result obtained by dividing the total area of the premises occupied by the corporation in the qualified centre by the area of the average reasonable space intended for the exclusive use of an individual recognized as an eligible employee of the corporation for the year and that is needed by that individual to perform his or her duties.
The area of the average reasonable space is assessed taking into account the nature of the duties performed and the proportion that, for the same work shift, each type of work station of the corporation for which an eligible employee certificate may be issued is of all such work stations.
9.16. If an individual is temporarily absent from work for reasons it considers reasonable, Investissement Québec may, for the purpose of determining whether the individual meets the conditions for recognition as an eligible employee of a corporation, consider that the individual continued to work and to perform his or her duties throughout the period of absence exactly as he or she was performing them immediately before the beginning of that period.
DIVISION V
PROPERTY CERTIFICATE
9.17. A property certificate certifies that the property referred to in the certificate is,
(1) where the certificate is issued to a corporation holding a specified corporation certificate and carrying on a business in a biotechnology development centre, a specialized property that relates to an activity related to biotechnologies mentioned in the valid activities certificate held by the corporation in relation to the centre; or
(2) where the certificate is held by a corporation which, at the time of the application for the certificate, held, or met the conditions to obtain, an exempt corporation certificate, a specialized property that relates to the innovative project carried out by the corporation.
If the certificate is described in subparagraph 2 of the first paragraph, Investissement Québec takes into account the criteria provided for in that subparagraph only in exercising its powers of amendment and revocation.
9.18. Investissement Québec may not issue a property certificate in respect of incorporeal property (other than specialized application software or system software), inventory, property consumed in connection with an activity related to biotechnologies, promotional material, furniture or general use equipment.
As regards a certificate described in subparagraph 2 of the first paragraph of section 9.17, the first paragraph applies only within the scope of the power of revocation of Investissement Québec. For that purpose, that paragraph is to be read as if in connection with an activity related to biotechnologies was replaced by in connection with the carrying out of the innovative project .
9.19. If a corporation holding a valid specified corporation certificate and carrying on business in a biotechnology development centre holds a property certificate described in subparagraph 2 of the first paragraph of section 9.17, what is certified in the certificate is deemed to remain valid if the property referred to in the certificate relates to an activity related to biotechnologies mentioned in the valid activities certificate held by the corporation in relation to the centre.
DIVISION VI
FACILITY CERTIFICATE
9.20. A facility certificate issued to a person certifies that the facility referred to in the certificate and owned by the person is recognized as an eligible facility in relation to a biotechnology development centre.
9.21. No facility certificate may be issued to a person in respect of a facility owned by the person unless the person submits to Investissement Québec, with the certificate application, a rate schedule specifying the various rental fees charged for using the facility.
A person who owns a facility and amends the related rate schedule must diligently submit the amended rate schedule to Investissement Québec. If the person fails to comply with this requirement, Investissement Québec may revoke the certificate issued to the person in respect of the facility as of the date on which the rate schedule is amended.
9.22. A facility may be recognized as an eligible facility in relation to a biotechnology development centre, if
(1) it is a facility described in section 9.23 in relation to the centre; and
(2) the rate schedule sent to Investissement Québec in respect of the facility provides for rental fees that are reasonable in the circumstances.
9.23. Only the following facilities may be recognized as eligible facilities in relation to a biotechnology development centre:
(1) a person’s facility that is set up by the person in the biotechnology development centre outside the premises occupied by a corporation holding a specified corporation certificate or an exempt corporation certificate, and comprises exclusively or almost exclusively properties each of which
(a) is a specialized property used in the field of biotechnology;
(b) before being placed in the biotechnology development centre, has not been used for any purpose, nor acquired to be used for a purpose other than its rental; and
(c) is intended to be rented on an ad hoc basis to two or more persons; and
(2) a facility used in the field of biotechnology that is,
(a) if the biotechnology development centre is the one in Laval,
i. a specialized facility of the Centre québécois d’innovation en biotechnologie that is located in that biotechnology development centre, or
ii. a specialized facility of the Institut national de la recherche scientifique (INRS) that is located in the Cité de la biotechnologie et de la santé humaine du Montréal Métropolitain;
(b) if the biotechnology development centre is the one in Lévis,
i. the chemistry and biology laboratories of the chemistry and biology department of the Cégep de Lévis-Lauzon that are located in Lévis, or
ii. a specialized facility of TRANS BIO TECH Centre collégial de transfert en biotechnologies that is located in Lévis;
(c) if the biotechnology development centre is the one in Saint-Hyacinthe,
i. a specialized facility of the Centre de recherche et de développement des aliments that is located in Saint-Hyacinthe,
ii. a specialized facility of Cintech agroalimentaire that is located in Saint-Hyacinthe, or
iii. a specialized facility of the Institut de biotechnologie vétérinaire et alimentaire (IBVA) that is located in Saint-Hyacinthe; or
(d) if the biotechnology development centre is the one in Sherbrooke,
i. a specialized facility of the Centre de recherche clinique of the Centre hospitalier universitaire de Sherbrooke that is located on the premises of the hospital centre, or
ii. a specialized facility of the faculty of medicine of the Université de Sherbrooke that is located on the Campus de la santé of the university.
For the purposes of this section, Cité de la biotechnologie et de la santé humaine du Montréal métropolitain means a site located in the territory of Ville de Laval and established by the Minister of Finance as the Cité de la biotechnologie et de la santé humaine du Montréal métropolitain.
9.24. The person who owns a facility and rents it to a corporation holding a valid exempt corporation certificate or a valid specified corporation certificate must give the corporation a copy of the facility certificate issued to the person in respect of the facility, as well as a copy of the current rate schedule in respect of the facility.
DIVISION VII
SPECIFIED CORPORATION CERTIFICATE
9.25. A particular specified corporation certificate issued to a corporation for a taxation year certifies that the corporation is carrying out in the year, in a designated site that is specified in the certificate, an activity that is listed in the activities certificate issued to it for the year in relation to the site.
If the corporation is a particular corporation referred to in the first paragraph of section 9.4 for the taxation year, the particular certificate must specify the time of the corporate reorganization, as well as the names of all other corporations holding a specified corporation certificate for the reorganization year which, at the time of issue, had not been revoked by Investissement Québec. It also specifies, if applicable, for each of the other corporations mentioned in the particular certificate which, for a preceding taxation year, was itself a particular corporation referred to in the first paragraph of section 9.4, both the time of the preceding reorganization from which it resulted and the names of all other corporations holding a specified corporation certificate for the year of that preceding reorganization which, at the time of issue, had not been revoked by Investissement Québec.
The particular certificate must also specify the date of coming into force of the specified corporation certificate issued to the corporation for the first taxation year in which it carried out, in a designated site, an activity listed in the activities certificate issued to it for the year in relation to the site. However, in the following circumstances, the date that must be specified in the particular certificate is,
(1) where the corporation is a particular corporation referred to in the first paragraph of section 9.4, the date that is the earliest among all dates each of which is the date of coming into force of the exempt corporation certificate held by another corporation whose name would be mentioned in the particular certificate if the second paragraph were read as follows, or, if the other corporation does not hold such a certificate, the date of the first specified corporation certificate issued to it:
If the corporation is a particular corporation referred to in the first paragraph of section 9.4 for the taxation year, the particular certificate must specify the time of the corporate reorganization, as well as the names of all other corporations holding a specified corporation certificate for the reorganization year. It also specifies, if applicable, for each of the other corporations mentioned in the particular certificate which, for a preceding taxation year, was itself a particular corporation referred to in section 9.4, both the time of the preceding reorganization from which it resulted and the names of all other corporations holding a specified corporation certificate for the year of that preceding reorganization. ; or
(2) if the corporation is referred to in the fourth paragraph of section 9.3 and is not a particular corporation referred to in the first paragraph of section 9.4, the date of coming into force of the exempt corporation certificate it holds.
If the corporation is carrying on a business in a biotechnology development centre, the particular certificate must specify the rate that, subject to subparagraphs b to d of the first paragraph of section 1029.8.36.0.22.1 of the Taxation Act, is applicable to the tax credit on specified wages. The rate specified is 30%, except in the circumstances described in the first or second paragraph of section 9.26, in which case the rate is 40%. In addition, if the corporation is a particular corporation referred to in the first paragraph of section 9.27, Investissement Québec must specify in the particular certificate, in support of the 40% rate, the information that would be required by the second paragraph if it were read as if the reference to section 9.4 was replaced, wherever it appears, by a reference to section 9.27.
If part of the corporation’s premises located in the designated site is not available for occupation, the corporation must establish to Investissement Québec’s satisfaction that it has entered into a lease to occupy that part of the premises at the earliest date possible. Once that fact is established, the corporation is deemed, for the purposes of the first paragraph, to carry out, in that part of the premises and throughout the period of the taxation year during which it may not occupy it, the activities that it is carrying out elsewhere in Québec and that are listed in the activities certificate issued to it for the year in relation to the site.
If, in a taxation year, a corporation carries on a business in more than one designated site and Investissement Québec issues a specified corporation certificate in respect of each of those sites to the corporation for the year, the certificates are deemed to be one and the same specified corporation certificate. For that purpose, the following rules apply in respect of the latter certificate:
(1) its date of coming into force is the date that is the earliest of the dates of coming into force of the certificates that form it; and
(2) it will be considered revoked only when all the certificates that form it are revoked.
A corporation holding an exempt corporation certificate must inform Investissement Québec diligently if, at a particular time in a particular taxation year, control of a corporation holding a specified corporation certificate is acquired, in accordance with subparagraph f of the first paragraph of section 771.13 of the Taxation Act, by the corporation, by a person or group of persons controlling it or by a group described in that subparagraph f to which the corporation belongs as a member or as a corporation controlled by one or more members of the group. In such a case, Investissement Québec must issue a specified corporation certificate for the year to the corporation and to any other corporation holding an exempt corporation certificate that is likewise part of the group, unless the corporation or any such other corporation has notified Investissement Québec that it elects to maintain its exempt corporation status despite the acquisition of control.
A particular corporation holding an exempt corporation certificate makes the election referred to in the fourth paragraph of section 9.3 or in the first paragraph of section 9.26, for a taxation year, by filing with Investissement Québec an application for a specified corporation certificate for the year.
9.26. A rate of 40% is specified in the specified corporation certificate issued for a particular taxation year to a corporation that carries on a business in a biotechnology development centre, holds an exempt corporation certificate issued to it following an application filed before 12 June 2003 and, after 30 March 2004, was entitled to obtain a specified corporation certificate because of subparagraph f of the first paragraph of section 771.13 of the Taxation Act or elected to become a corporation holding such a certificate, if
(1) a specified corporation certificate was issued to the corporation for the preceding taxation year that is the particular year referred to in the seventh paragraph of section 9.25 or the year for which it made the election;
(2) a specified corporation certificate was issued to the corporation for each taxation year that is between that preceding year and the particular year; and
(3) at the time the specified corporation certificate is to be issued for the particular year, none of the following certificates have been revoked:
(a) the exempt corporation certificate; and
(b) the certificates referred to in subparagraphs 1 and 2.
The 40% rate is also specified in the specified corporation certificate issued for a particular taxation year to a corporation that carries on a business in a biotechnology development centre, but to which the first paragraph does not apply, if
(1) a specified corporation certificate was issued to the corporation for the most recent preceding taxation year for which the corporation filed a written application for that purpose before 12 June 2003;
(2) a specified corporation certificate was issued to the corporation for each taxation year that is between that preceding year and the particular year; and
(3) at the time the specified corporation certificate is to be issued to the corporation for the particular year, none of the certificates referred to in subparagraphs 1 and 2 have been revoked.
If, at a particular time, Investissement Québec revokes the exempt corporation certificate issued to the corporation referred to in the first paragraph, any specified corporation certificate issued to the corporation is deemed to be amended by Investissement Québec at that time to replace the specified rate of 40% by a rate of 30%. If, at a particular time, Investissement Québec revokes a specified corporation certificate issued to the corporation referred to in the first or second paragraph for a given taxation year which, if the corporation is referred to in the second paragraph, does not precede the taxation year referred to in subparagraph 1 of that paragraph, the same applies to any specified corporation certificate issued to the corporation for a taxation year subsequent to the given year.
The revocation by Investissement Québec of the exempt corporation certificate issued to a corporation gives rise to the application of the presumption in the third paragraph only if the effective date of the revocation precedes the date of coming into force of the election referred to in the first paragraph.
9.27. For the purpose of applying, for a particular taxation year, the first or second paragraph of section 9.26 in respect of a particular corporation resulting from a corporate reorganization involving at least one other corporation that held a valid specified corporation certificate for its taxation year that ended immediately before the time of the reorganization or included that time (in this section and in section 9.25 referred to as the reorganization year ), one or more of the following presumptions apply, as the case may be:
(1) where the other corporation or, if there are more than one, any of the other corporations is referred to in the first paragraph of section 9.26 or is deemed to hold an exempt corporation certificate because of the application of this subparagraph, the exempt corporation certificate held or deemed to be held by that corporation is, subject to the third paragraph, deemed to be held by the particular corporation, and each of the specified corporation certificates that were issued to it or are deemed to have been issued to it because of the application of this subparagraph is, subject to the third paragraph, deemed to have been issued to the particular corporation; or
(2) where subparagraph 1 does not apply in respect of the other corporation or, if there are more than one, in respect of any of the other corporations, any specified corporation certificate that was issued to the corporation for any of its taxation years that is the reorganization year, the year referred to in subparagraph 1 of the second paragraph of section 9.26 or a year between those two taxation years, or that is deemed to have been issued to the corporation for such a year because of the application of this subparagraph, is, subject to the third paragraph, deemed to have been issued to the particular corporation for the same taxation year.
The first paragraph is deemed to have applied before 1 January 2011 in respect of any other corporation resulting from a reorganization, if a specified corporation certificate was issued to that other corporation before that date.
If the exempt corporation certificate held by a given corporation, or a specified corporation certificate issued to it that would otherwise be referred to in the first paragraph is revoked by Investissement Québec, one of the following rules applies, as the case may be:
(1) in the case of the revocation of the exempt corporation certificate, neither that certificate nor any of the specified corporation certificates issued to the given corporation is deemed to be held by, or to have been issued to, the particular corporation under subparagraph 1 of the first paragraph;
(2) in the case of the revocation of a specified corporation certificate referred to in subparagraph 1 of the first paragraph, neither the exempt corporation certificate held or deemed to be held by the given corporation, nor any of the specified corporation certificates that were issued or are deemed to have been issued to it is deemed to be held by, or to have been issued to, the particular corporation under that subparagraph 1; or
(3) in the case of the revocation of a specified corporation certificate referred to in subparagraph 2 of the first paragraph, none of the specified corporation certificates that were issued or are deemed to have been issued to the given corporation are deemed to have been issued to the particular corporation under that subparagraph 2.
However, the revocation by Investissement Québec of the exempt corporation certificate held by a given corporation gives rise to the application of the third paragraph only if the effective date of the revocation precedes the date of the acquisition of control referred to in the seventh paragraph of section 9.25 or before the date of coming into force of the election referred to in the first paragraph of section 9.26.
If, at a particular time, because of the application of the third paragraph, the particular corporation can no longer meet, for a taxation year, neither the conditions of subparagraphs 1 and 2 of the first paragraph of section 9.26 nor the conditions of subparagraphs 1 and 2 of the second paragraph of that section, any specified corporation certificate that was issued to it is deemed to have been amended by Investissement Québec at that time to replace, in accordance with the third paragraph of section 9.26, the rate of 40% by a rate of 30%.
In this section, corporate reorganization means
(1) an amalgamation of corporations;
(2) the winding-up of a wholly-owned subsidiary into its parent; or
(3) a reorganization in the course of which a corporation transfers to another corporation all of its activities referred to in the unrevoked activities certificate issued to the corporation for the taxation year that includes the time of the transfer, which time is considered to be the time of the reorganization, provided that all the issued shares of each class of shares of the capital stock of each of the two corporations that are parties to the transfer are owned by the same person or are owned by the same group of persons and are distributed among its members in such a manner that the proportion of issued shares of any class of shares of the capital stock of either of the two corporations that are owned by each member is identical to the proportion of issued shares of the corresponding class of shares of the capital stock of the other corporation that are owned by that member.
For the purposes of subparagraph 2 of the sixth paragraph, a corporation is a wholly-owned subsidiary of another corporation (in this section referred to as the parent ), if at least 90% of all the issued shares of each class of shares of its capital stock are owned by the parent.
For the purposes of this section, either the parent or the other corporation referred to in subparagraph 3 of the sixth paragraph is considered to be the corporation resulting from a corporate reorganization, depending on whether the reorganization is described in subparagraph 2 or 3 of that sixth paragraph.
The specified corporation certificate held for the reorganization year by the corporation that transferred all its activities referred to in the valid activities certificate it holds for the same year is deemed to be revoked by Investissement Québec as of the time of the reorganization. However, this presumption does not apply in respect of the third paragraph.
DIVISION VIII
ACTIVITIES CERTIFICATE
9.28. An activities certificate issued, for a taxation year, to a corporation carrying on a business in a designated site certifies that each of the activities mentioned in the certificate is recognized,
(1) if the designated site is a biotechnology development centre, as an activity related to biotechnologies;
(2) if the designated site is a new economy centre, as an activity related to the new economy; or
(3) if the designated site is the Centre national des nouvelles technologies de Québec or the Cité du multimédia, as an activity related to information technologies.
If the designated site is a biotechnology development centre and the corporation does not hold an exempt corporation certificate, the activities certificate also specifies, for the purpose of establishing the beginning of the period referred to in paragraph b or c of the definition of eligibility period in the first paragraph of section 1029.8.36.0.17 of the Taxation Act, the date of coming into force of the first specified corporation certificate issued to the corporation following an application filed after 30 March 2004.
9.29. Subject to section 9.32, an activity may be recognized as an activity related to biotechnologies if
(1) the activity is an innovative activity in the field of biotechnology; and
(2) the activity is related to
(a) human health,
(b) animal or plant agrobiotechnology,
(c) the environment, or
(d) human or animal nutrition.
9.30. Subject to section 9.32, an activity may be recognized as an activity related to the new economy if
(1) the activity is an innovative activity; and
(2) the activity is carried out in any of the following sectors:
(a) information technologies, including electronic data processing, telecommunications, geomatics, measurement and control instrumentation, multimedia and consulting services,
(b) production technologies, including design and engineering, manufacturing and assembly, automated handling of materials and manufacturing information systems,
(c) biotechnologies, including human and animal health, farming, agri-food, forestry and the environment,
(d) materials technologies, including chemical and metallic materials, polymers and composite materials, and
(e) scientific and technological services, including engineering services, testing laboratories, scientific and technical consulting services and the design of computer systems.
9.31. Subject to section 9.32, an activity may be recognized as an activity related to information technologies if
(1) the activity is an innovative activity; and
(2) the activity is carried out in the sectors of information technology and communications, including electronic data processing, telecommunications, multimedia and consulting services.
9.32. The following activities may be recognized neither as activities related to biotechnologies, nor as activities related to the new economy or activities related to information technologies:
(1) the repair, maintenance and reconditioning of electronic or computer hardware;
(2) the manufacturing of machines, instruments, components, parts, hardware or equipment;
(3) the assembly of parts or components, such as the assembly of television sets, computer monitors, calculators or cash registers;
(4) audio or video signal distribution services via television broadcasting, telephony, cable broadcasting, satellites or other cellular networks;
(5) distribution services such as those of newspaper chains, periodicals, video clubs and television stations;
(6) the operation of radio or television broadcasting satellites, studios or networks;
(7) the operation of telephone services or electromagnetic telecommunications services, such as a call centre or a telephone network;
(8) activities related to print media, non-digital film, including post-production, or non-digital audiovisual production, including a television program;
(9) activities carried out by a primary supplier, in particular a museum, a library or an information bank;
(10) activities carried out by an Internet access provider;
(11) teleconferencing services;
(12) the publishing of books and the production of disks; and
(13) activities related to market analysis and market development, financial packaging, business plan preparation, capital property financing, advertising, promoting, manufacturing, processing or commercializing.
DIVISION IX
SPECIFIED EMPLOYEE CERTIFICATE
9.33. A specified employee certificate issued to a corporation certifies that the individual referred to in the certificate is recognized as a specified employee of the corporation for the taxation year for which the application for the certificate was made or for the part of the year specified in it.
9.34. An individual may be recognized as a specified employee of a corporation if
(1) the individual works full time for the corporation, that is, at least 26 hours per week, for an expected minimum period of 40 weeks;
(2) the individual undertakes, supervises or directly supports, in a designated site where the corporation carries on a business, work relating to an activity of the corporation that is mentioned in the activities certificate issued to the corporation, in relation to the site, for the year for which the application for an employee certificate is filed; and
(3) the individual performs his or her duties exclusively or almost exclusively in the designated site.
9.35. For the purposes of subparagraph 3 of the first paragraph of section 9.34, an individual who works for a corporation is deemed to perform his or her duties in a designated site where the corporation carries on a business during the period in which the individual receives refresher training outside the site, provided all the conditions of that section are otherwise met and the individual receives his or her usual remuneration during that period.
An individual is also deemed to perform, in the designated site, the duties that the individual performs in a research centre equipped with specialized equipment or in a natural setting, if
(1) the research centre or natural setting is located neither in another establishment of the corporation, nor in the establishment of a client or of a person with whom the corporation is not dealing at arm’s length; and
(2) it would be unreasonable to require that those duties be performed in the designated site.
If the designated site is a biotechnology development centre, the individual is deemed to perform his or her duties in the centre when using a person’s specialized facility, in relation to the centre, that the corporation is renting in the course of carrying out an activity mentioned in the valid activities certificate it holds in relation to the centre.
The individual is also deemed to perform his or her duties in the designated site when performing them elsewhere in Québec because part of the corporation’s premises located in the site is not available for occupation. In such a case, the presumption applies only for the period referred to in the fifth paragraph of section 9.25 and only if the evidence required by that paragraph is provided to Investissement Québec’s satisfaction. The latter presumption also has effect for the purposes of subparagraph 2 of the first paragraph of section 9.34.
9.36. The number of specified employee certificates that Investissement Québec may issue to a corporation for a taxation year, in respect of a designated site where the corporation carries on a business, may not exceed the result obtained by dividing the total area of the premises occupied by the corporation in the designated site by the area of the average reasonable space that is intended for the exclusive use of an individual recognized as a specified employee of the corporation for the year and that is needed by that individual to perform his or her duties.
The area of the average reasonable space is assessed taking into account the nature of the duties performed and the proportion that, for the same work shift, each type of work station of the corporation for which a specified employee certificate may be issued is of all such work stations.
9.37. If an individual is temporarily absent from work for reasons it considers reasonable, Investissement Québec may, for the purpose of determining whether the individual meets the conditions for recognition as a specified employee of a corporation, consider that the individual continued to work and to perform his or her duties throughout the period of absence exactly as he or she was performing them immediately before the beginning of that period.
CHAPTER X
SECTORAL PARAMETERS OF TAX HOLIDAYS AND TAX CREDITS RELATING TO MONTRÉAL INTERNATIONAL TRADE ZONE AT MIRABEL
DIVISION I
INTERPRETATION AND GENERAL
10.1. In this chapter, unless the context indicates otherwise,
fiscal measure relating to the Montréal international trade zone at Mirabel means any of the following fiscal measures from which a corporation to which the certificate referred to in the first paragraph of section 10.3 is or has been issued, or a corporation that is a member of a partnership to which such a certificate has been issued or, in the case of the measure described in paragraph 6, another person who is a member of such a partnership may benefit:
(1) the tax credit for wages;
(2) the tax credit for customs brokerage services;
(3) the tax credit for the acquisition costs or rental expenses of a property;
(4) the fiscal measure provided for in Title VII.2.2 of Book IV of Part I of the Taxation Act, which allows the corporation to deduct an amount in computing its taxable income, for a taxation year, under section 737.18.11 of that Act;
(5) the fiscal measure provided for in sections 1130, 1137 and 1138.2.1 of the Taxation Act, which allows the corporation to deduct an amount in computing its paid-up capital for a taxation year under paragraphs d and e of section 1137 of that Act; and
(6) the fiscal measure provided for in sections 33 and 34 of the Act respecting the Régie de l’assurance maladie du Québec, which allows the corporation or the other person to obtain a contribution exemption under subparagraph b of the seventh paragraph of section 34 of that Act;
Montréal international trade zone at Mirabel means the zone that consists of the lots of the official cadastre of Mirabel bearing numbers 1 554 289, 1 554 299, 1 555 365, 1 689 485, 1 689 486, 1 689 487, 1 689 505, 1 689 506, 1 689 507, 1 689 508, 1 689 509, 1 689 548, 1 689 549, 1 689 551, 1 689 552, 1 689 555, 1 689 780, 1 689 781, 1 689 783, 1 689 784, 1 689 785, 1 689 786, 1 689 787, 1 689 789, 1 689 790, 1 689 791, 1 689 793, 1 689 794, 1 689 795, 1 689 796, 1 689 797, 1 689 798, 1 689 799, 1 689 897, 1 689 898, 1 689 899, 1 689 900, 1 689 901, 1 689 902, 1 689 903, 1 689 904, 1 689 905, 1 689 906, 1 689 907, 1 689 908, 1 689 910, 1 689 911, 1 689 913, 1 689 981, 1 689 992, 1 690 004, 1 690 006, 1 690 007, 1 809 917, 1 809 918, 1 809 923, 2 362 199, 2 362 203, 2 362 326, 2 455 559, 2 455 561, 2 455 562, 2 455 563, 2 455 564, 2 455 565, 2 455 567 and 3 495 456;
tax credit for customs brokerage services means the fiscal measure provided for in Division II.6.0.5 of Chapter III.1 of Title III of Book IX of Part I of the Taxation Act, under which a corporation is deemed to have paid an amount to the Minister of Revenue on account of its tax payable under that Part for a taxation year;
tax credit for the acquisition costs or rental expenses of a property means the fiscal measure provided for in Division II.6.0.6 of Chapter III.1 of Title III of Book IX of Part I of the Taxation Act, under which a corporation is deemed to have paid an amount to the Minister of Revenue on account of its tax payable under that Part for a taxation year;
tax credit for the construction, renovation or alteration of strategic buildings means the fiscal measure provided for in Division II.6.0.7 of Chapter III.1 of Title III of Book IX of Part I of the Taxation Act, under which a corporation is deemed to have paid an amount to the Minister of Revenue on account of its tax payable under that Part for a taxation year;
tax credit for wages means the fiscal measure provided for in Division II.6.0.4 of Chapter III.1 of Title III of Book IX of Part I of the Taxation Act, under which a corporation is deemed to have paid an amount to the Minister of Revenue on account of its tax payable under that Part for a taxation year.
10.2. For the purposes of this Act and despite sections 1175.27, 1175.28.15 and 1175.28.17 of the Taxation Act, every person who is a member of a partnership that holds the certificate referred to in the first paragraph of section 10.3 is considered to be the person who benefits from, or avails himself, herself or itself of, the fiscal measure described in paragraph 6 of the definition of fiscal measure relating to the Montréal international trade zone at Mirabel in section 10.1, according to the agreed proportion in respect of the person for the partnership’s fiscal period that ends in the person’s taxation year for which the measure applies.
10.3. To benefit from a fiscal measure relating to the Montréal international trade zone at Mirabel, a corporation or, if it avails itself of the measure as a member of a partnership, the partnership must hold a valid certificate in respect of the business carried on in the zone (in this chapter referred to as a business certificate ). The same applies if another person who is a member of the partnership intends to avail himself, herself or itself of the fiscal measure described in paragraph 6 of the definition of fiscal measure relating to the Montréal international trade zone at Mirabel in section 10.1.
Depending on which fiscal measure relating to the Montréal international trade zone at Mirabel the corporation or the partnership of which the corporation is a member intends to benefit from, the corporation or the partnership must obtain one or more of the following certificates from Investissement Québec:
(1) in the case of the tax credit for wages, a certificate in respect of each individual for whom the corporation claims the tax credit (in this chapter referred to as an employee certificate );
(2) in the case of the tax credit for customs brokerage services, a certificate in respect of each contract for which the corporation claims the tax credit (in this chapter referred to as a contract certificate ); and
(3) in the case of the tax credit for the acquisition costs or rental expenses of a property, a certificate in respect of each property for which the corporation claims the tax credit (in this chapter referred to as a property certificate ).
The certificates referred to in subparagraphs 1 and 2 of the second paragraph must be obtained, as the case may be, for each taxation year for which the corporation intends to benefit from the tax credit relating to the Montréal international trade zone at Mirabel to which that paragraph refers, or for each fiscal period of the partnership of which the corporation is a member that ends in such a taxation year.
However, Investissement Québec may not issue a particular certificate referred to in the second paragraph to a corporation or partnership, in relation to a business, unless the business certificate held by the corporation or the partnership in respect of the business is still valid on the date of coming into force of the particular certificate.
If, at a particular time, Investissement Québec revokes the business certificate held by the corporation or the partnership in respect of a business, any certificate referred to in the second paragraph that relates to the business and whose date of coming into force is subsequent to the effective date of the revocation is deemed to be revoked by Investissement Québec at that time. In such a case, the effective date of the deemed revocation is the date of coming into force of the certificate that is deemed to be revoked. Any certificate referred to in the second paragraph that relates to the business and that is still valid on the effective date of the revocation of the business certificate is also deemed to be revoked by Investissement Québec at that particular time, except that the deemed revocation becomes effective on the latter date.
10.4. Despite the first paragraph of section 10.3, to benefit from a fiscal measure relating to the Montréal international trade zone at Mirabel, a particular corporation resulting from a corporate reorganization must obtain a business certificate from Investissement Québec in respect of a particular business. However, Investissement Québec may issue the certificate only if
(1) following the reorganization, the particular corporation carries on the particular business in the Montréal international trade zone at Mirabel;
(2) another corporation that was part of the reorganization held, immediately before the reorganization, an unrevoked business certificate that was issued to it, in respect of the particular business, either following an application filed before 12 June 2003 or, if the other corporation itself resulted from a reorganization, under this paragraph; and
(3) in the case of a reorganization referred to in subparagraph 3 of the fourth paragraph and where the particular business that was transferred to the particular corporation is only part of the business in respect of which the other corporation held a business certificate, the other corporation ceases as of the time of the transfer to carry on, in the Montréal international trade zone at Mirabel, the portion of that business that was not transferred.
The first paragraph is deemed to have applied before 1 January 2011 in respect of any corporation resulting from a corporate reorganization, if a business certificate was issued to it before that date in respect of the business carried on following the reorganization.
A particular business certificate issued to a particular corporation under the first paragraph is deemed to be revoked by Investissement Québec at a particular time if the business certificate that the other corporation held immediately before the reorganization from which it resulted is revoked by Investissement Québec at that time or is deemed to be revoked because of the application of this paragraph. The effective date of the deemed revocation is the date of coming into force of the particular certificate.
In this section and sections 10.6 and 10.20, corporate reorganization means
(1) an amalgamation of corporations;
(2) the winding-up of a wholly-owned subsidiary into its parent; or
(3) a reorganization in the course of which a corporation transfers to another corporation all or part of the activities of the particular business that are specified in the business certificate issued to the corporation that is valid immediately before the time of the transfer, which time is considered to be the time of the reorganization, provided that all the issued shares of each class of shares of the capital stock of each of the two corporations that are parties to the transfer are owned by the same person or are owned by the same group of persons and are distributed among its members in such a manner that the proportion of issued shares of any class of shares of the capital stock of either of the two corporations that are owned by each member is identical to the proportion of issued shares of the corresponding class of shares of the capital stock of the other corporation that are owned by the member.
For the purposes of subparagraph 2 of the fourth paragraph, a corporation is a wholly-owned subsidiary of another corporation (in this section referred to as the parent ), if at least 90% of all the issued shares of each class of shares of its capital stock are owned by the parent.
For the purposes of this section and sections 10.6 and 10.20, the parent or the other corporation referred to in subparagraph 3 of the fourth paragraph is considered to be the corporation resulting from a corporate reorganization, depending on whether the reorganization is described in subparagraph 2 or 3 of that fourth paragraph.
The business certificate held by the corporation that transferred, in the course of a corporate reorganization described in subparagraph 3 of the fourth paragraph, all or part of the activities of the particular business that are described in the certificate is deemed to be revoked by Investissement Québec as of the time of the reorganization. However, this presumption does not apply in respect of the third paragraph.
10.5. A corporation which, for any taxation year, benefited from the tax credit for the construction, renovation or alteration of strategic buildings, in relation to a particular building, must, to avoid paying the special tax provided for in section 1129.4.30 of the Taxation Act, obtain from Investissement Québec a certificate in respect of the building (in this chapter referred to as a building certificate ).
The certificate must be obtained for each of the nine taxation years following the taxation year that includes the date specified in the work completion certificate held by the corporation in relation to the particular building.
DIVISION II
BUSINESS CERTIFICATE
10.6. A particular business certificate issued to a corporation or a partnership, in relation to a particular business, certifies that all or substantially all of the activities of the business that the corporation or partnership carries on in the Montréal international trade zone at Mirabel are activities that are mentioned in the certificate. The certificate also certifies that those activities are recognized as eligible activities.
A particular certificate issued following an application filed before 12 June 2003 confirms the business plan enclosed with the application, which plan specifies, among other things, the particular sectors to which the activities of the particular business must belong.
In the case of a particular corporation referred to in the first paragraph of section 10.4, the particular certificate specifies the time of the corporate reorganization and the name of the other corporation holding, immediately before that time, a valid business certificate in respect of the particular business. If the other corporation also resulted from a corporate reorganization, the certificate specifies, for any other corporation mentioned in the particular certificate which, in the course of a preceding reorganization, was a corporation referred to in the first paragraph of section 10.4, both the time of the preceding reorganization from which it resulted and the name of the other corporation holding, immediately before that time, a valid business certificate in respect of the particular business. The particular certificate also specifies, for the purposes of the provisions of the Taxation Act that are listed in the fifth paragraph, as a deemed effective date, the date of coming into force of the business certificate issued, in respect of the particular business, to the other corporation or, if there are more than one, to the corporation among those other corporations that applied for the certificate before 12 June 2003. Lastly, for the purposes of the presumptions of the Taxation Act that are listed in the sixth paragraph, the latter certificate is deemed to have been issued to the particular corporation.
If an immovable or a part of immovable located in the Montréal international trade zone at Mirabel that the corporation or the partnership needs to carry on the particular business is not yet available for occupation, the corporation or partnership must give an undertaking to Investissement Québec that it will occupy the immovable or part of immovable at the earliest date possible. Once that undertaking has been given, the corporation or the partnership is deemed, for the purposes of this chapter, to carry on, in that immovable or part of immovable and throughout the period during which it may not occupy it, activities of the particular business that it carries on elsewhere in Québec.
The provisions of the Taxation Act to which the third paragraph refers are the following:
(1) the definition of base period in the first paragraph of section 737.18.6;
(2) paragraph b of the definition of qualified wages in the first paragraph of section 1029.8.36.0.38;
(3) paragraph b of the definition of qualified brokerage expenditure in the first paragraph of section 1029.8.36.0.55; and
(4) the definition of qualified property in the first paragraph of section 1029.8.36.0.72.
The presumptions of the Taxation Act to which the third paragraph refers are those set out in the following provisions of that Act:
(1) section 737.18.9.1; and
(2) the third paragraph of each of sections 1029.8.36.0.38, 1029.8.36.0.55 and 1029.8.36.0.72.
10.7. A business certificate issued to a corporation or a partnership in respect of a particular business whose activities are the expansion of the particular activities which, on the date it becomes effective, are carried on in Québec outside the Montréal international trade zone at Mirabel, is valid only for the period in which the corporation or partnership complies with its undertaking not to reduce the particular activities or move them inside the zone.
10.8. To be recognized as an eligible activity, an activity must be provided for in the business plan referred to in the second paragraph of section 10.6 and relate to one or more of the following sectors of activity:
(1) international logistics;
(2) aircraft maintenance and repair;
(3) training in the field of aviation; and
(4) minor processing.
An activity that is provided for in the business plan referred to in the second paragraph of section 10.6 may also be recognized as an eligible activity if, in the opinion of Investissement Québec, it is of special interest to Québec.
10.9. Subject to section 10.10, an activity relates to international logistics if it is closely related to the international or interprovincial distribution of goods. In this respect, for each class of goods, Québec must be neither the origin nor the destination of property representing more than 20% of the value of the goods included in that class. However, a more substantial part of the property of a class of goods may come from Québec or be distributed in Québec if such property is not otherwise distributed in Québec by other businesses.
10.10. The transportation activities of a corporation or partnership providing air, trucking or railway services are not considered to be activities that relate to international logistics, unless they consist in ground activities of an air carrier that are directly related to the transhipment or storage of goods.
10.11. The aircraft maintenance and repair sector includes activities relating to the maintenance and repair of navigation instruments and ground service equipment.
10.12. An activity relates to training in the field of aviation if it complements training activities that are offered in Québec outside the Montréal international trade zone at Mirabel or if it contributes mainly to the training of flight personnel or airport personnel that are not resident in Québec.
For the purposes of the first paragraph,
airport personnel includes firefighters, de-icing workers, air traffic controllers, investigators, flight safety managers and ramp agents;
flight personnel includes pilots, flight attendants and flight engineers.
10.13. A manufacturing or processing activity relates to minor processing if the total of the value added at the time of the manufacturing or processing and the cost of the components purchased in the Montréal international trade zone at Mirabel for that activity does not exceed half of the total value of the product manufactured or processed, and if the decision to establish, in the zone, a particular business of which the activity is a part is significantly motivated by one or more of the following factors:
(1) the proximity of an international airport;
(2) the presence of a free zone;
(3) easy access to air, road, rail or maritime transportation; and
(4) the availability of a sizable establishment area.
However, such a manufacturing or processing activity may not be recognized as an eligible activity unless it contributes to the development of facilities dedicated to airport purposes and to the economic development of Québec and is in keeping with the requirements of international trade agreements.
DIVISION III
EMPLOYEE CERTIFICATE
10.14. An employee certificate issued to a corporation or a partnership, in relation to a particular business, certifies that the individual referred to in the certificate is recognized as an eligible employee of the corporation or partnership for the taxation year or fiscal period for which the application for the certificate was made or for the part of the year or period specified in the certificate.
10.15. An individual may be recognized as an eligible employee of a corporation or a partnership, if
(1) the individual works full-time for the corporation or partnership, that is, at least 26 hours per week, for an expected minimum period of at least 40 weeks; and
(2) at least 75% of the individual’s duties with the corporation or partnership consist in work relating to an activity of a particular business (other than an activity that relates to minor processing) that is specified in the valid business certificate held by the corporation or partnership in respect of the business.
For the purposes of subparagraph 2 of the first paragraph, an individual’s administrative tasks are not to be considered as work relating to an activity specified in a business certificate.
In this section, administrative tasks include tasks relating to operations management, accounting, finances, legal affairs, public relations, communications, contract solicitation and human and physical resources management.
DIVISION IV
CONTRACT CERTIFICATE
10.16. A contract certificate issued to a corporation or a partnership, in relation to a particular business, certifies that the contract referred to in the certificate is recognized as an eligible contract for the taxation year of the corporation or the fiscal period of the partnership for which the application for the certificate was made. The contract certificate also lists the services rendered under the contract by a customs broker to the corporation in the year, or to the partnership in the period, that constitute customs brokerage services rendered in relation to the activities of the particular business that are specified in the valid business certificate held by the corporation or partnership in respect of the business.
10.17. A contract between a corporation or a partnership and a customs broker under which the customs broker undertakes to render customs brokerage services to the corporation or partnership, in relation to the activities of a particular business that are specified in the business certificate held by the corporation or partnership in respect of the business, is recognized as an eligible contract.
DIVISION V
PROPERTY CERTIFICATE
10.18. A property certificate issued to a corporation or a partnership certifies that the property referred to in the certificate is dedicated to the Montréal international trade zone at Mirabel. If the property is leased by the person or partnership, the certificate also specifies the eligible lease period of the property determined in accordance with the second paragraph.
The eligible lease period of a property is the lease period during which the total rent paid in respect of the property does not exceed 25% of the acquisition cost of an identical property.
10.19. A property is considered to be dedicated to the Montréal international trade zone at Mirabel if, within a reasonable time after its acquisition or after the date of the contract under which it is leased, it is used by the corporation or partnership only in the Montréal international trade zone at Mirabel and exclusively or almost exclusively to earn income from the activities of a particular business that are specified in the business certificate held by the corporation or partnership in respect of the business.
In the circumstances described in the fourth paragraph of section 10.6, a property is deemed to be used in the Montréal international trade zone at Mirabel for the period during which it is used by the corporation or partnership in Québec outside the zone, if
(1) during that period, it is used exclusively or almost exclusively to earn income from the activities specified in the business certificate held by the corporation or partnership in respect of the particular business; and
(2) it continues to be so used by the corporation or partnership in the carrying on of the particular business after the corporation or partnership has begun to occupy the immovable or the part of immovable, referred to in that fourth paragraph, that is located in the Montréal international trade zone at Mirabel.
10.20. Investissement Québec must revoke the property certificate issued to a corporation or a partnership, in respect of a property acquired or leased by it, if, at any time in the three-year period after the date on which the property began to be used by the corporation or partnership, the property ceases to be used by the corporation or partnership only in the Montréal international trade zone at Mirabel or exclusively or almost exclusively to earn income from the activities specified in the business certificate held by the corporation or partnership in respect of the particular business. The effective date of the revocation is the date of coming into force of the property certificate that is revoked.
If a property certificate has been issued to another corporation referred to in subparagraph 2 of the first paragraph of section 10.4 in relation to a particular business carried on by the other corporation, the particular corporation resulting from the corporate reorganization following which the particular corporation continues the carrying on of the particular business and the other corporation are deemed to be one and the same corporation in determining, for the purposes of this section and section 10.18, if the property has been used and, if so, to what end.
10.21. Investissement Québec may not issue a property certificate to a corporation or a partnership in respect of a property that is office furniture or general-use equipment or that is used by individuals holding administrative duties with the corporation or partnership. The same applies in respect of a property that is an aircraft, a vehicle or rolling stock, except in the case of equipment intended for the transhipment of goods or the handling of goods inside a warehouse, hangar or assembly shop.
DIVISION VI
BUILDING CERTIFICATE
10.22. A building certificate issued to a corporation certifies that, for the taxation year for which the application for the certificate was made, the building or the part of building that is referred to in the certificate is not used or intended to be used for residential purposes and that at least three quarters of the total space is used for the carrying on of one or more businesses recognized by Investissement Québec or is intended to be so used.
If at least three quarters of the total space of the building or of the part of building is occupied by the same corporation for the carrying on of a business recognized by Investissement Québec, the name of the corporation is also specified in the building certificate.
10.23. A business in whose respect an unrevoked business certificate is held is recognized by Investissement Québec. A business of a corporation may also be recognized by Investissement Québec if
(1) at the time the business begins to be carried on in the building or the part of building referred to in section 10.22, the business is not identical or similar to another business carried on in Québec at that time by a person other than the corporation;
(2) all or substantially all the activities of the business relate to one or more of the sectors of activity referred to in the first paragraph of section 10.8;
(3) the activities of the business are new activities for the corporation or constitute a significant expansion of a business already carried on by the corporation; and
(4) the activities of the business do not arise from the relocation of a business that was carried on in Québec outside the Montréal international trade zone at Mirabel.
CHAPTER XI
SECTORAL PARAMETERS OF TAX CREDIT FOR JOB CREATION IN RESOURCE REGIONS, IN ALUMINUM VALLEY AND IN GASPÉSIE AND CERTAIN MARITIME REGIONS OF QUÉBEC
DIVISION I
INTERPRETATION AND GENERAL
11.1. In this chapter, unless the context indicates otherwise,
base year of a corporation, relating to the particular calendar year that ends in a taxation year for which the corporation claims the tax credit for job creation in certain regions of Québec, means, subject to the third paragraph, the calendar year that precedes the first calendar year covered by the first qualification certificate issued to the corporation that
(1) is valid at the beginning of the particular year; and
(2) either is referred to in the first paragraph of section 11.2 or, if that first calendar year precedes the year 2003, was issued for the purposes of any of the following divisions:
(a) Division II.6.6.2 of Chapter III.1 of Title III of Book IX of Part I of the Taxation Act, in which case the qualification certificate is referred to in this chapter as an initial qualification certificate in relation to the Saguenay–Lac-Saint-Jean region;
(b) Division II.6.6.4 of that Chapter III.1, in which case the qualification certificate is referred to in this chapter as an initial qualification certificate in relation to the eligible regions; and
(c) Division II.6.6.6 of that Chapter III.1, in which case the qualification certificate is referred to in this chapter as an initial qualification certificate in relation to the resource regions;
designated region means
(1) a resource region;
(2) an eligible region; or
(3) the Saguenay–Lac-Saint-Jean region;
eligible region means
(1) the Bas-Saint-Laurent region;
(2) the Côte-Nord region; or
(3) the Gaspésie–Îles-de-la-Madeleine region;
recognized business , for a calendar year, in relation to the resource regions, the eligible regions or the Saguenay–Lac-Saint-Jean region, means the set of activities carried on by a corporation in one or more resource regions, one or more eligible regions or in the Saguenay–Lac-Saint-Jean region, as the case may be, that are specified in a qualification certificate referred to in subparagraph 1 of the second paragraph of section 11.2 that is issued to the corporation for the calendar year;
resource region means
(1) any of the following regions or parts of a region:
(a) either the Bas-Saint-Laurent region or, if this definition applies to a calendar year subsequent to the year 2012, the part of that region that includes the territories of the regional county municipalities of La Matapédia, Matane and La Mitis,
(b) either the Saguenay–Lac-Saint-Jean region or, if this definition applies to a calendar year subsequent to the year 2012, the part of that region that includes the territories of the regional county municipalities of Maria-Chapdelaine, Le Fjord-du-Saguenay and Le Domaine-du-Roy,
(c) either the Mauricie region or, if this definition applies to a calendar year subsequent to the year 2012, the part of that region that includes the territories of the urban agglomeration of La Tuque, Municipalité régionale de comté de Mékinac and Ville de Shawinigan,
(d) the Abitibi-Témiscamingue region,
(e) the Côte-Nord region, and
(f) the Nord-du-Québec region; or
(2) any of the following regional county municipalities:
(a) Municipalité régionale de comté d’Antoine-Labelle,
(b) Municipalité régionale de comté de La Vallée-de-la-Gatineau, and
(c) Municipalité régionale de comté de Pontiac;
tax credit for job creation in certain regions of Québec means the fiscal measure provided for in Division II.6.6.6.1 of Chapter III.1 of Title III of Book IX of Part I of the Taxation Act, under which a corporation is deemed to have paid an amount to the Minister of Revenue on account of its tax payable under that Part for a taxation year.
For the purposes of the definition of base year in the first paragraph, the following presumptions must be taken into consideration, as applicable:
(1) a qualification certificate issued to a corporation for a period beginning in the calendar year 2000 or 2001, in respect of a particular business that is recognized by Investissement Québec in relation to that calendar year and that was carried on by the corporation for the purposes of any of Divisions II.6.6.2, II.6.6.4 and II.6.6.6 of Chapter III.1 of Title III of Book IX of Part I of the Taxation Act, is, if the corporation so elected and despite the revocation of the certificate by Investissement Québec at the corporation’s request, deemed valid, for the purpose of determining the corporation’s base year that relates to a subsequent calendar year that is covered, in whole or in part, by a qualification certificate referred to in the first paragraph of section 11.2 that is subsequently issued to the corporation in respect of activities recognized by Investissement Québec that are part of the business, or by a qualification certificate subsequently issued to the corporation, in relation to the business and for the purposes of that Division II.6.6.2, II.6.6.4 or II.6.6.6; and
(2) a qualification certificate referred to in the first paragraph of section 11.2 or issued for the purposes of any of Divisions II.6.6.2, II.6.6.4 and II.6.6.6 of Chapter III.1 of Title III of Book IX of Part I of the Taxation Act, revoked by Investissement Québec at the request of the corporation to which it has been issued, because of a major unforeseen event affecting the corporation in a particular calendar year, is deemed valid, for the purpose of determining the corporation’s base year that relates to a calendar year subsequent to the particular calendar year, if the corporation resumes the activities that were interrupted because of the major unforeseen event in a municipality or in another place that is more than 40 km away from the municipality or the place where the corporation used to carry on the activities.
However, the base year of a corporation that carried on, before 1 April 2008, a recognized business in relation to the eligible regions or the Saguenay–Lac-Saint-Jean region, as the case may be, is
(1) the calendar year that precedes the calendar year ending in the taxation year for which an election under the first paragraph of section 1029.8.36.72.82.3.1 of the Taxation Act was made for the first time by the corporation, if the corporation made the second election referred to in paragraph a of the definition of base period in the first paragraph of section 1029.8.36.72.82.1 of that Act; or
(2) the calendar year 2010, if the corporation made the election under the first paragraph of section 1029.8.36.72.82.3.1.1 of that Act.
11.2. To benefit from the tax credit for job creation in certain regions of Québec, a corporation that is carrying on activities in one or more designated regions must obtain a qualification certificate from Investissement Québec in relation to any set of activities which, according to the designated region or regions in which the corporation is carrying on the activities and the nature of the activities, is
(1) the set of activities that are carried on by the corporation in one or more resource regions in the first calendar year for which the application for the qualification certificate is filed and that may be recognized by Investissement Québec in respect of such a region, in which case the qualification certificate is referred to in this chapter as an initial qualification certificate , in relation to the resource regions;
(2) the set of activities that are carried on by the corporation in one or more eligible regions in the first calendar year for which the application for the qualification certificate is filed and that may be recognized by Investissement Québec in respect of such a region, in which case the qualification certificate is referred to in this chapter as an initial qualification certificate , in relation to the eligible regions; or
(3) the set of activities that are carried on by the corporation in the Saguenay–Lac-Saint-Jean region in the first calendar year for which the application for the qualification certificate is filed and that may be recognized by Investissement Québec in respect of that region, in which case the qualification certificate is referred to in this chapter as an initial qualification certificate , in relation to the Saguenay–Lac-Saint-Jean region.
To benefit from the tax credit, a corporation must also obtain the following documents from Investissement Québec:
(1) a qualification certificate (in this chapter referred to as a business qualification certificate ) in respect of activities carried on by the corporation in one or more resource regions, one or more eligible regions or the Saguenay–Lac-Saint-Jean region and for which the corporation claims the tax credit; and
(2) a certificate (in this chapter referred to as an employee certificate ) in respect of each individual who meets the requirements for recognition as an eligible employee of the corporation.
The documents referred to in the second paragraph must be obtained for each calendar year that ends in a taxation year for which the corporation intends to claim the tax credit for job creation in certain regions of Québec. The certificates referred to in subparagraph 2 of that paragraph must also be obtained for the base year that relates to such a calendar year.
However, Investissement Québec may not issue an initial qualification certificate to a corporation, in relation to the eligible regions or the Saguenay–Lac-Saint-Jean region, as the case may be, unless the first calendar year for which the application for the certificate is filed precedes the year 2016. Similarly, Investissement Québec may not issue an initial qualification certificate to a corporation in relation to the resource regions unless
(1) the corporation results from a corporate reorganization described in the fifth paragraph of section 11.4 in the course of which an unrevoked initial qualification certificate in relation to the resource regions is deemed to have been issued to the corporation under subparagraph 2 of the first paragraph of that section; or
(2) because of a major unforeseen event, an initial qualification certificate issued to the corporation in relation to the resource regions has been revoked by Investissement Québec at the corporation’s request and the corporation resumes the activities recognized by Investissement Québec in respect of such a region that were interrupted because of the event before the beginning of the third calendar year that follows the calendar year in which the activities were interrupted.
Similarly, Investissement Québec may not, for a particular calendar year, issue to a corporation a business qualification certificate in respect of the activities carried on by the corporation in one or more resource regions, one or more eligible regions or the Saguenay–Lac-Saint-Jean region unless the initial qualification certificate, in relation to the resource regions, the eligible regions or the Saguenay–Lac-Saint-Jean region, as the case may be, issued to the corporation is valid for the particular year.
Investissement Québec is deemed to revoke the initial qualification certificate, in relation to the resource regions, that was issued to a corporation if the corporation makes an election under the first paragraph of section 1029.8.36.72.82.3.1.1 of the Taxation Act. The deemed revocation becomes effective on 1 January 2011.
If, at a particular time, Investissement Québec revokes an initial qualification certificate issued to a corporation, in relation to the resource regions, the eligible regions or the Saguenay–Lac-Saint-Jean region, as the case may be, any business qualification certificate issued to the corporation in relation to such regions, for the particular calendar year that includes the effective date of the revocation or for a subsequent calendar year, is deemed to be revoked by Investissement Québec at that time. In such a case, the effective date of the deemed revocation is the date of coming into force of the qualification certificate that is deemed to be revoked.
Investissement Québec may not issue a document referred to in the second paragraph to a corporation for a calendar year subsequent to the year 2015.
11.3. Investissement Québec may not issue an initial qualification certificate in relation to the set of activities carried on by a corporation in the eligible regions or the Saguenay–Lac-Saint-Jean region unless the corporation establishes to Investissement Québec’s satisfaction that at least three full-time jobs will be created within a reasonable time in the territory of one or more eligible regions or the Saguenay–Lac-Saint-Jean region, as the case may be.
For the purpose of determining the number of jobs created, any full-time, part-time or seasonal job created by a corporation in any establishment located in an eligible region or the Saguenay–Lac-Saint-Jean region, as the case may be, as well as any increase in the number of hours worked by employees of such an establishment, may be taken into account. The job or the increase in the number of hours worked is considered to be all or part of a full-time job, depending on the number of hours involved. In the case of an initial qualification certificate issued to a corporation in relation to the eligible regions, any such job that is created or any such increase that occurs in a period preceding the date of coming into force of the initial qualification certificate may also be taken into account if the corporation held, for that period, a valid initial qualification certificate within the meaning of Chapter XII.
11.4. If a particular corporation carries on a set of activities in one or more designated regions and resulted from a corporate reorganization involving another corporation that held, immediately before the reorganization, a valid business qualification certificate in relation to that set of activities, the following rules must be taken into consideration in this chapter:
(1) for the purpose of applying section 11.3 or the third paragraph of section 11.1 to the particular corporation, that corporation and the other corporation are deemed to be one and the same corporation;
(2) any unrevoked initial qualification certificate issued to the other corporation, in relation to the resource regions, the eligible regions or the Saguenay–Lac-Saint-Jean region, as the case may be, or deemed to have been issued to it because of the application of this subparagraph is deemed to have been issued to the particular corporation; and
(3) any unrevoked employee certificate issued to the other corporation or deemed to have been issued to it because of the application of this subparagraph for its base year is deemed to have been issued to the particular corporation for the calendar year, unless the date of coming into force of the first initial qualification certificate issued to the latter corporation precedes the date of coming into force of the first initial qualification certificate issued to the other corporation.
However, the presumption set out in subparagraph 3 of the first paragraph does not apply in the case of a corporate reorganization that is described in subparagraph 3 of the fifth paragraph and the presumption set out in subparagraph 2 of the first paragraph applies to such a reorganization only for the purposes of subparagraph 1 of the fourth paragraph of section 11.2 and for the purpose of establishing whether an activity is referred to in the second paragraph of any of sections 11.7, 11.9 and 11.11.
If, immediately before a reorganization that occurs in the first 15 days of a particular calendar year, the other corporation did not hold, for the particular year, a business qualification certificate in respect of the set of activities referred to in the first paragraph that is transferred in the course of the reorganization, but held a valid initial qualification certificate, the unrevoked business qualification certificate issued to it, in respect of that set of activities, for the calendar year that precedes the particular year is deemed, for the purposes of the first paragraph and of subparagraph 3 of the fifth paragraph, to have been issued for the particular year and be valid immediately before the reorganization.
The first paragraph is deemed to have applied before 1 January 2011 in respect of any other corporation itself resulting from a corporate reorganization that occurred before that date in the circumstances described in that paragraph.
In this chapter, corporate reorganization means
(1) an amalgamation of corporations;
(2) the winding-up of a wholly-owned subsidiary into its parent; or
(3) a reorganization in the course of which a corporation transfers to another corporation all of its activities referred to in an unrevoked business qualification certificate issued to the corporation for the calendar year that includes the time of the transfer, which time is considered to be the time of the reorganization, provided that all the issued shares of each class of shares of the capital stock of each of the two corporations that are parties to the transfer are owned by the same person or are owned by the same group of persons and are distributed among its members in such a manner that the proportion of issued shares of any class of shares of the capital stock of either of the two corporations that are owned by each member is identical to the proportion of issued shares of the corresponding class of shares of the capital stock of the other corporation that are owned by the member.
For the purposes of subparagraph 2 of the definition of corporate reorganization in the fifth paragraph, a corporation is a wholly-owned subsidiary of another corporation (in this chapter referred to as the parent ), if at least 90% of all the issued shares of each class of shares of its capital stock are owned by the parent.
For the purposes of this chapter, either the parent or the other corporation referred to in paragraph 3 of the definition of corporate reorganization in the fifth paragraph is considered to be the corporation resulting from a corporate reorganization, depending on whether the reorganization is described in paragraph 2 or 3 of that definition.
DIVISION II
INITIAL QUALIFICATION CERTIFICATE AND BUSINESS QUALIFICATION CERTIFICATE
11.5. An initial qualification certificate issued to a corporation, in relation to the resource regions, the eligible regions or the Saguenay–Lac-Saint-Jean region, confirms that the activities specified in the certificate and carried on by the corporation in such a region, in the first calendar year referred to in the certificate, are activities recognized by Investissement Québec in respect of a resource region, an eligible region or the Saguenay–Lac-Saint-Jean region, as the case may be. However, that first calendar year may not precede the calendar year preceding the calendar year in which the corporation filed the application for the certificate with Investissement Québec.
If the initial qualification certificate is issued to a corporation resulting from a corporate reorganization described in subparagraph 1 or 2 of the fifth paragraph of section 11.4, it also sets out the activities specified in the initial qualification certificate, in relation to the resource regions, the eligible regions or the Saguenay–Lac-Saint-Jean region, as the case may be, that was held, immediately before the reorganization, by the other corporation referred to in the first paragraph of that section. If, subsequently, the latter certificate is amended or revoked, Investissement Québec must make the resulting amendments to the initial qualification certificate issued to the corporation.
A corporation that files an application for an initial qualification certificate, in relation to the resource regions, the eligible regions or the Saguenay–Lac-Saint-Jean region, is required to inform Investissement Québec of all the activities it carried on, in the first calendar year for which it makes the application, in one or more resource regions, one or more eligible regions or the Saguenay–Lac-Saint-Jean region, as the case may be.
If, as of a particular date, an activity may no longer be recognized in respect of a resource region under sections 11.7 to 11.10, in respect of an eligible region under sections 11.11 to 11.13 or in respect of the Saguenay–Lac-Saint-Jean region under sections 11.14 to 11.17, and a corporation holds an initial qualification certificate in relation to the resource regions, the eligible regions or the Saguenay–Lac-Saint-Jean region, as the case may be, in which the activity is specified, Investissement Québec must, at the corporation’s request, amend the qualification certificate to specify that the activity is recognized only for a period that ends immediately before the particular date.
If, as of a particular date, an activity may be recognized in respect of a resource region under sections 11.7 to 11.10, in respect of an eligible region under sections 11.11 to 11.13 or in respect of the Saguenay–Lac-Saint-Jean region under sections 11.14 to 11.17, and the corporation carried on the activity in such a region in the first calendar year covered by the initial qualification certificate it holds in relation to the resource regions, the eligible regions or the Saguenay–Lac-Saint-Jean region, as the case may be, Investissement Québec must amend the qualification certificate to specify that the activity is recognized as of the particular date.
11.6. A business qualification certificate issued to a corporation, for a calendar year, confirms that the activities specified in it and carried on by the corporation in one or more designated regions in the year constitute a business recognized by Investissement Québec for the year in respect of the resource regions, the eligible regions or the Saguenay–Lac-Saint-Jean region, depending on whether
(1) the designated regions are resource regions and the activities are recognized by Investissement Québec in respect of such a region;
(2) the designated regions are eligible regions and the activities are recognized by Investissement Québec in respect of such a region; or
(3) the designated region is the Saguenay–Lac-Saint-Jean region and the activities are recognized by Investissement Québec in respect of that region.
11.7. Subject to sections 11.9 and 11.10, an activity may be recognized by Investissement Québec in respect of a resource region if it is,
(1) in relation to the wood processing sector,
(a) an activity that consists in manufacturing or processing finished or semi-finished products from wood,
(b) an activity that consists in manufacturing or processing paper or paperboard products, or
(c) an activity that consists in manufacturing or processing crate components, in seasoning timber in a kiln or in planing timber in a plant;
(2) in relation to the metal processing sector, an activity that consists in manufacturing or processing finished or semi-finished products from metals;
(3) in relation to the non-metallic mineral processing sector, an activity that consists in manufacturing or processing finished or semi-finished products from non-metallic minerals, such as peat and slate;
(4) in relation to the food processing sector, an activity that consists in manufacturing or processing food products;
(5) in relation to the energy sector,
(a) an activity that consists in producing ecological non-conventional energy from the biomass or hydrogen, or
(b) an activity that consists in manufacturing products for the production or use of energy, namely,
i. components that directly produce energy or convert a form of energy into another, such as turbines and alternators, or
ii. industrial-use electrical materials and components that perform connection, commutation, relay or control functions, such as control panels, electric relays and switch cabinets; or
(6) in relation to other sectors,
(a) an activity that consists in reclaiming or recycling waste and residues resulting directly from the development or processing of natural resources,
(b) a fresh-water aquaculture activity,
(c) an activity that consists in manufacturing or processing finished or semi-finished products from gemstones or semi-precious stones, including an activity that consists in the setting of gemstones or semi-precious stones, or in jewellery making, or
(d) a printing or publishing activity, including an activity relating to typesetting, printing, collating, folding or bundling.
An activity that consists in manufacturing specialized equipment for logging operations, wood processing, paper or paperboard manufacturing, mining, metal processing, energy production or use, or fresh-water aquaculture, other than an activity described in the first paragraph, may be recognized by Investissement Québec in respect of a resource region if the activity is specified in an unrevoked initial qualification certificate issued to the corporation, in relation to the resource regions, following an application filed before 12 June 2003.
Any activity, other than a commercialization activity, that is related to an activity referred to in any subparagraph of the first paragraph or in the second paragraph, such as the technical design of products or production facilities, the receiving or storing of raw materials, or the assembling or handling of goods in process, is deemed to be referred to in that subparagraph or the second paragraph.
A design or engineering activity that is carried on by a corporation for the purpose of manufacturing or processing a property may be recognized by Investissement Québec in respect of a resource region even if the manufacturing or processing of the property is entrusted to a third party, provided that the manufacturing or processing activities are activities referred to in the first or second paragraph and that the corporation retains broad control over the manufacturing or processing process.
11.8. A commercialization activity that is carried on by a corporation in a particular calendar year may be recognized by Investissement Québec in respect of a resource region if it is incidental to an activity that is referred to in section 11.7 and carried on in such a region in the particular year by the corporation or a corporation associated with it, in the course of a recognized business, for that year, in relation to the resource regions.
For the purposes of this chapter, a commercialization activity referred to in the first paragraph is deemed to be carried on in a resource region.
11.9. None of the following activities may be recognized by Investissement Québec in respect of a resource region:
(1) an activity related to pulp, paper or paperboard manufacturing;
(2) an activity related to the primary processing of wood, metals or non-metallic minerals;
(3) an activity that consists in manufacturing or processing finished or semi-finished products from peat or slate and that is carried on by a corporation in the Bas-Saint-Laurent region or in the Côte-Nord region;
(4) an activity that consists in manufacturing or processing alcoholic beverages;
(5) a food manufacturing or processing activity that is carried on in restaurants, hotels, shopping centre fast-food outlets, supermarkets, grocery stores or other similar commercial establishments;
(6) a maintenance or repair activity;
(7) a scientific research and experimental development activity;
(8) an activity related to the sawing of logs or bolts to produce timber or similar products, such as boards, dimension lumber, poles and ties, an activity that takes place before logs are delivered to a sawmill or any other place for processing logs, or an activity related to the production of timber or similar products;
(9) an activity relating to the development of wildlife resources; and
(10) an installation activity, such as an activity involved in the installation of factory-built houses, steel joists, ventilation ducts, electrical systems or kitchen cabinets.
However, despite subparagraph 8 of the first paragraph, an activity of a corporation that relates to the production of timber or similar products and that is subsequent to the sawing of logs or bolts may be recognized by Investissement Québec in respect of a resource region if the activity is specified in the unrevoked initial qualification certificate, in relation to the resource regions, issued to the corporation following an application filed before 11 July 2002.
11.10. An activity that may be recognized by Investissement Québec in respect of an eligible region, otherwise than under subparagraph 4 or 5 of the first paragraph of section 11.11, or in respect of the Saguenay–Lac-Saint-Jean region may not be recognized in respect of a resource region.
11.11. Subject to section 11.13, an activity may be recognized by Investissement Québec in respect of an eligible region if it is
(1) an activity that consists in producing wind power or manufacturing wind turbines or their key components, in particular, towers, rotors or nacelles, unless the activity is carried on in the Côte-Nord region or the part of the Bas-Saint-Laurent region that is not included in the territory of the Municipalité régionale de comté de Matane;
(2) subject to the second paragraph, an activity that consists in manufacturing or processing finished or semi-finished products in the field of marine biotechnology;
(3) subject to the second paragraph, a mariculture activity, unless the activity is carried on in the Bas-Saint-Laurent region;
(4) an activity that consists in manufacturing or processing finished or semi-finished products from peat or slate, other than an activity related to the primary processing of those minerals, and that is carried on by a corporation that did not make the election under the first paragraph of section 1029.8.36.72.82.3.1.1 of the Taxation Act; or
(5) a processing or manufacturing activity that is not otherwise referred to in this paragraph, is included in the group described under code 31, 32 or 33 of the North American Industry Classification System (NAICS) - Canada, as amended from time to time and published by Statistics Canada, and is carried on in the Gaspésie–Îles-de-la-Madeleine region.
However, subparagraph 2 or 3 of the first paragraph applies to an activity only if it is specified in a valid initial qualification certificate, in relation to the eligible regions, issued to the corporation for a period beginning in a calendar year that precedes the year 2004.
Any activity, other than a commercialization activity, that is related to an activity referred to in any subparagraph of the first paragraph, such as the technical design of products or production facilities, the receiving or storing of raw materials, or the assembling or handling of goods in process, is deemed to be referred to in that subparagraph.
A design or engineering activity that is carried on by a corporation for the purpose of manufacturing or processing a property may be recognized by Investissement Québec in respect of an eligible region even if the manufacturing or processing of the property is entrusted to a third party, provided that the manufacturing or processing activities are activities referred to in the first paragraph and that the corporation retains broad control over the manufacturing or processing process.
11.12. A commercialization activity that is carried on by a corporation in a particular calendar year may be recognized by Investissement Québec in respect of an eligible region if it is incidental to an activity that is referred to in section 11.11 and carried on in such a region in the particular year by the corporation or a corporation associated with it, in the course of a recognized business, for that year, in relation to the eligible regions.
For the purposes of this chapter, a commercialization activity referred to in the first paragraph is deemed to be carried on in an eligible region.
11.13. None of the following activities may be recognized by Investissement Québec in respect of an eligible region:
(1) an activity that consists in manufacturing or processing alcoholic beverages;
(2) a food manufacturing or processing activity that is carried on in restaurants, hotels, shopping centre fast-food outlets, supermarkets, grocery stores or other similar commercial establishments;
(3) a maintenance and repair activity;
(4) a scientific research and experimental development activity; and
(5) an installation activity, such as an activity involved in the installation of factory-built houses, steel joists, ventilation ducts, electrical systems or kitchen cabinets.
11.14. Subject to sections 11.16 and 11.17, an activity may be recognized by Investissement Québec in respect of the Saguenay–Lac-Saint-Jean region if it is
(1) an activity that consists in manufacturing finished or semi-finished products made from aluminum, provided the aluminum has already undergone primary processing; or
(2) an activity that consists in reclaiming or recycling waste and residues resulting directly from the processing of aluminum.
Any activity, other than a commercialization activity, that is related to an activity referred to in either of the subparagraphs of the first paragraph, such as the technical design of products or production facilities, the receiving or storing of raw materials, or the assembling or handling of goods in process, is deemed to be referred to in that subparagraph.
A design or engineering activity that is carried on by a corporation for the purpose of manufacturing or processing a property may be recognized by Investissement Québec in respect of the Saguenay–Lac-Saint-Jean region even if the manufacturing or processing of the property is entrusted to a third party, provided that the manufacturing or processing activities are activities referred to in the first paragraph and that the corporation retains broad control over the manufacturing or processing process.
11.15. A commercialization activity that is carried on by a corporation in a particular calendar year may be recognized by Investissement Québec in respect of the Saguenay–Lac-Saint-Jean region if it is incidental to an activity that is referred to in section 11.14 and carried on in that region in the particular year by the corporation or a corporation associated with it, in the course of a recognized business, for that year, in relation to the Saguenay–Lac-Saint-Jean region.
For the purposes of this chapter, a commercialization activity referred to in the first paragraph is deemed to be carried on in the Saguenay–Lac-Saint-Jean region.
11.16. None of the following activities may be recognized by Investissement Québec in respect of the Saguenay–Lac-Saint-Jean region:
(1) a maintenance and repair activity;
(2) a scientific research and experimental development activity; and
(3) an installation activity.
11.17. An activity that may be recognized by Investissement Québec in respect of an eligible region, otherwise than under subparagraph 5 of the first paragraph of section 11.11, may not be recognized in respect of the Saguenay–Lac-Saint-Jean region.
11.18. Investissement Québec may, at the request of a corporation, revoke the initial qualification certificate issued to the corporation, in relation to the resource regions, the eligible regions or the Saguenay–Lac-Saint-Jean region, as the case may be, if, because of a major unforeseen event, the corporation must cease carrying on activities that are recognized by Investissement Québec in respect of such a region. The revocation becomes effective at the beginning of the calendar year following the calendar year in which the activities ceased.
A decrease in the corporation’s volume of business following the loss of a major client does not constitute a major unforeseen event.
DIVISION III
EMPLOYEE CERTIFICATE
11.19. An employee certificate issued to a corporation under this chapter certifies that the individual referred to in the certificate is recognized as an eligible employee of the corporation for pay periods that end in the calendar year for which the certificate was applied for. The certificate also specifies the number of such pay periods.
For its base year that relates to a particular calendar year, the corporation is required to apply to Investissement Québec for an employee certificate in respect of any individual working for it who, in accordance with section 11.20, may be recognized as an eligible employee of the corporation. A corporation resulting from a corporate reorganization described in subparagraph 1 or 2 of the fifth paragraph of section 11.4 is also required to apply, for the given calendar year that is its base year that relates to a particular calendar year, for an employee certificate in respect of any individual who may be so recognized and who worked in the given year for the other corporation referred to in the first paragraph of section 11.4, if the base year of the other corporation, immediately before the reorganization, was subsequent to the given calendar year.
If Investissement Québec amends or revokes one or more qualification certificates issued to a corporation for a particular calendar year each of which is either a business qualification certificate or a qualification certificate referred to in subparagraph 1 of the second paragraph of section 12.2, it must make consequential changes by amending or revoking, as applicable, any employee certificate that was issued to the corporation for the particular year and in respect of which activities that are specified in the qualification certificate or certificates so revoked or that are modified by the amendment to the qualification certificate or certificates were taken into account.
Similarly, if Investissement Québec amends or revokes one or more qualification certificates issued to a corporation and each of which is either an initial qualification certificate, in relation to the resource regions, the eligible regions or the Saguenay–Lac-Saint-Jean region, as the case may be, or a qualification certificate referred to in the first paragraph of section 12.2, it must make consequential changes
(1) by amending or revoking, as applicable, any employee certificate that was issued to the corporation for its base year that relates to a particular calendar year and in respect of which activities that are specified in the qualification certificate or certificates so revoked or that are modified by the amendment to the qualification certificate or certificates were taken into account; or
(2) by issuing, if applicable, an employee certificate in respect of any individual who worked for the corporation in its base year that relates to a particular calendar year and that, because of the amendments made to the qualification certificate or certificates, may, in accordance with section 11.20, be recognized as an eligible employee of the corporation.
Investissement Québec must, at the corporation’s request, amend or revoke, as applicable, any employee certificate issued to it for the base year that relates to a calendar year subsequent to 2012, if the request is based on the fact that, from the calendar year 2013, the set of activities each of which is an activity recognized in respect of a resource region and carried on by the corporation in that base year in one or more of the following parts of regions is no longer taken into consideration:
(1) the part of the Bas-Saint-Laurent region not included in the territories of the regional county municipalities of La Matapédia, Matane and La Mitis;
(2) the part of the Saguenay–Lac-Saint-Jean region not included in the territories of the regional county municipalities of Maria-Chapdelaine, Le Fjord-du-Saguenay and Le Domaine-du-Roy; or
(3) the part of the Mauricie region not included in the territories of the urban agglomeration of La Tuque, Municipalité régionale de comté de Mékinac and Ville de Shawinigan.
If an employee certificate issued to a corporation for a base year of the corporation is amended or revoked because of the application of the fifth paragraph or of subparagraph 1 of the fourth paragraph, Investissement Québec must specify, in the amended certificate or in the notice of revocation, as the case may be, as of which calendar year that relates to that base year the amendment or revocation must be taken into consideration. The same applies if a new employee certificate is issued to the corporation for that base year because of the application of subparagraph 2 of the fourth paragraph.
11.20. An individual may be recognized as an eligible employee of a corporation, for a pay period that ends in a calendar year, if the proportion, expressed as a percentage, that the time spent by the individual during the period in undertaking, supervising or directly supporting the set of activities specified in one or more qualification certificates issued to the corporation for the year, each of which is either a business qualification certificate or a qualification certificate referred to in subparagraph 1 of the second paragraph of section 12.2, is of the time spent by the individual during the period in performing all his or her duties with the corporation is at least 75%.
If the calendar year is the base year that relates to a particular calendar year, the activities to be taken into consideration for the purpose of computing the proportion described in the first paragraph in respect of an individual are the following, not the activities referred to in that paragraph:
(1) the activities specified in any initial qualification certificate, in relation to the resource regions, the eligible regions or the Saguenay–Lac-Saint-Jean region, that was issued to the corporation and is still valid for the particular calendar year, if, according to the certificate, they are recognized for a period included in that particular year;
(2) the activities specified in a qualification certificate referred to in the first paragraph of section 12.2 that was issued to the corporation and is still valid for the particular calendar year, if, according to the certificate, they are recognized for a period included in that particular year and, if the calendar year is subsequent to the calendar year that is the corporation’s base period, within the meaning of the first paragraph of section 1029.8.36.72.82.13 of the Taxation Act, that is applicable to the particular calendar year, any other activity that either is specified in a qualification certificate referred to in subparagraph 1 of the second paragraph of section 12.2 that was issued to the corporation for the calendar year and that is not revoked, or would have been so specified in the certificate, or in such a certificate, if the corporation had made a request to that effect; and
(3) if the calendar year is referred to in the third paragraph of section 11.1, any other activity that either is specified in a business qualification certificate or in a qualification certificate referred to in subparagraph 1 of the second paragraph of section 12.2 that was issued to the corporation for the calendar year and is not revoked, or would have been so specified in the certificate, or in such a certificate, if the corporation had made a request to that effect.
However, if the calendar year to which subparagraph 3 of the second paragraph refers is the year 2010, that subparagraph is to be applied without reference, if applicable, to the business qualification certificate according to which the activities in respect of a resource region are recognized by Investissement Québec.
For the purposes of the first and second paragraphs, the administrative tasks of an individual may not be considered to relate to the activities that are specified in a qualification certificate referred to in those paragraphs.
In this section, administrative tasks include tasks relating to operations management, accounting, legal or financial services, communications, public relations, and human and physical resources management. They also include tasks relating to commercialization, other than those referred to in the first paragraph of any of sections 11.8, 11.12, 11.15 and 12.8.
11.21. If an individual is temporarily absent from work for reasons it considers reasonable, Investissement Québec may, for the purpose of determining whether the individual meets the conditions for recognition as an eligible employee, consider that the individual continued to work and to perform his or her duties throughout the period of absence exactly as he or she was performing them immediately before the beginning of that period.
CHAPTER XII
SECTORAL PARAMETERS OF TAX CREDIT FOR JOB CREATION IN GASPÉSIE AND CERTAIN MARITIME REGIONS OF QUÉBEC IN FIELDS OF MARINE BIOTECHNOLOGY, MARICULTURE AND MARINE PRODUCTS PROCESSING
DIVISION I
INTERPRETATION AND GENERAL
12.1. In this chapter, unless the context indicates otherwise,
eligible region means
(1) the Bas-Saint-Laurent region;
(2) the Côte-Nord region; or
(3) the Gaspésie–Îles-de-la-Madeleine region;
recognized business , in relation to a calendar year, means the set of activities carried on by a corporation that are specified in a qualification certificate referred to in subparagraph 1 of the second paragraph of section 12.2 and issued to the corporation for the calendar year;
tax credit for job creation in the fields of marine biotechnology, mariculture and marine products processing means the fiscal measure provided for in Division II.6.6.6.2 of Chapter III.1 of Title III of Book IX of Part I of the Taxation Act, under which a corporation is deemed to have paid an amount to the Minister of Revenue on account of its tax payable under that Part for a taxation year.
For the purposes of this chapter, a qualification certificate referred to in subparagraph 2 of the first paragraph of section 11.2 or issued for the purposes of Division II.6.6.4 of Chapter III.1 of Title III of Book IX of Part I of the Taxation Act and according to which one or more marine products processing activities referred to in section 12.7 are recognized by Investissement Québec is deemed to be a qualification certificate referred to in the first paragraph of section 12.2 in which those activities are the only one that have been specified.
12.2. To benefit from the tax credit for job creation in the fields of marine biotechnology, mariculture and marine products processing, a corporation that is carrying on activities in one or more eligible regions must obtain a qualification certificate (in this chapter referred to as an initial qualification certificate ) from Investissement Québec in relation to the set of activities that are carried on by the corporation in such a region in the first calendar year for which the application for the qualification certificate is filed and that may be recognized by Investissement Québec.
To benefit from the tax credit, a corporation must also obtain the following documents from Investissement Québec:
(1) a qualification certificate (in this chapter referred to as a business qualification certificate ) in respect of activities that are carried on by the corporation in one or more eligible regions and for which the corporation claims the tax credit; and
(2) a certificate (in this chapter referred to as an employee certificate ) in respect of each individual who meets the requirements for recognition as an eligible employee of the corporation.
The documents referred to in the second paragraph must be obtained for each calendar year that ends in a taxation year for which the corporation intends to claim the tax credit for job creation in the fields of marine biotechnology, mariculture and marine products processing.
However, Investissement Québec may not issue an initial qualification certificate to a corporation unless the first calendar year for which the application for the certificate is filed precedes the year 2016.
Similarly, Investissement Québec may not issue a business qualification certificate to a corporation for a particular calendar year in respect of the activities carried on by the corporation in one or more eligible regions unless the initial qualification certificate issued to the corporation is valid for the particular year.
If, at a particular time, Investissement Québec revokes an initial qualification certificate issued to a corporation, any business qualification certificate issued to the corporation for the particular calendar year that includes the effective date of the revocation or for a subsequent calendar year is deemed to be revoked by Investissement Québec at that time. In such a case, the effective date of the deemed revocation is the date of coming into force of the qualification certificate that is deemed to be revoked.
Investissement Québec may not issue a document referred to in the second paragraph to a corporation for a calendar year subsequent to the year 2015.
12.3. Investissement Québec may issue an initial qualification certificate in relation to the set of activities carried on by a corporation in the eligible regions only if the corporation establishes to Investissement Québec’s satisfaction that at least three full-time jobs will be created within a reasonable time in such regions.
For the purpose of determining the number of jobs created, any full-time, part-time or seasonal job created by a corporation in any establishment located in an eligible region, as well as any increase in the number of hours worked by employees of such an establishment, may be taken into account. The job or the increase in the number of hours worked is considered to be all or part of a full-time job, depending on the number of hours involved. Any such job that is created or any such increase that occurs in a period preceding the date of coming into force of the initial qualification certificate may also be taken into account if the corporation held, for that period, a valid initial qualification certificate, in relation to the eligible regions, within the meaning of Chapter XI.
12.4. If a particular corporation carries on a set of activities in one or more eligible regions and resulted from a corporate reorganization involving another corporation that held, immediately before the reorganization, a valid business qualification certificate in relation to that set of activities, the following rules must be taken into consideration in this chapter:
(1) for the purpose of applying section 12.3 to the particular corporation, that corporation and the other corporation are deemed to be one and the same corporation; and
(2) any unrevoked initial qualification certificate issued to the other corporation or deemed to have been issued to it because of the application of this subparagraph is deemed to have been issued to the particular corporation.
However, the presumption set out in subparagraph 2 of the first paragraph does not apply in the case of a corporate reorganization that is described in subparagraph 3 of the fifth paragraph.
If, immediately before a reorganization that occurs in the first 15 days of a particular calendar year, the other corporation did not hold, for the particular year, a business qualification certificate in respect of the set of activities referred to in the first paragraph that is transferred in the course of the reorganization, but held a valid initial qualification certificate, the unrevoked business qualification certificate issued to it, in respect of that set of activities, for the calendar year that precedes the particular year is deemed, for the purposes of the first paragraph and of subparagraph 3 of the fifth paragraph, to have been issued for the particular year and be valid immediately before the reorganization.
The first paragraph is deemed to have applied before 1 January 2011 in respect of any other corporation itself resulting from a corporate reorganization that occurred before that date in the circumstances described in that paragraph.
In this chapter, corporate reorganization means
(1) an amalgamation of corporations;
(2) the winding-up of a wholly-owned subsidiary into its parent; or
(3) a reorganization in the course of which a corporation transfers to another corporation all of its activities referred to in an unrevoked business qualification certificate issued to the corporation for the calendar year including the time of the transfer, which time is considered to be the time of the reorganization, provided that all the issued shares of each class of shares of the capital stock of each of the two corporations that are parties to the transfer are owned by the same person or are owned by the same group of persons and are distributed among its members in such a manner that the proportion of issued shares of any class of shares of the capital stock of either of the two corporations that are owned by each member is identical to the proportion of issued shares of the corresponding class of shares of the capital stock of the other corporation that are owned by the member.
For the purposes of paragraph 2 of the definition of corporate reorganization in the fifth paragraph, a corporation is a wholly-owned subsidiary of another corporation (in this chapter referred to as the parent ), if at least 90% of all the issued shares of each class of shares of its capital stock are owned by the parent.
For the purposes of this chapter, either the parent or the other corporation referred to in paragraph 3 of the definition of corporate reorganization in the fifth paragraph is considered to be the corporation resulting from a corporate reorganization, depending on whether the reorganization is described in paragraph 2 or 3 of that definition.
DIVISION II
INITIAL QUALIFICATION CERTIFICATE AND BUSINESS QUALIFICATION CERTIFICATE
12.5. An initial qualification certificate issued to a corporation confirms that the activities specified in the certificate and carried on by the corporation in an eligible region, in the first calendar year referred to in the certificate, are activities recognized by Investissement Québec under this chapter. However, that first calendar year may not precede the calendar year preceding the calendar year in which the corporation filed the application for the certificate with Investissement Québec.
If the initial qualification certificate is issued to a corporation resulting from a corporate reorganization described in subparagraph 1 or 2 of the fifth paragraph of section 12.4, it also sets out the activities specified in the initial qualification certificate that was held, immediately before the reorganization, by the other corporation referred to in the first paragraph of that section. If, subsequently, the latter certificate is amended or revoked, Investissement Québec must make the resulting amendments to the initial qualification certificate issued to the corporation.
A corporation that files an application for an initial qualification certificate is required to inform Investissement Québec of all the activities it carried on in one or more eligible regions in the first calendar year for which it makes the application.
If, as of a particular date, an activity may no longer be recognized under sections 12.7 to 12.9 and a corporation holds an initial qualification certificate in which the activity is specified, Investissement Québec must, at the corporation’s request, amend the qualification certificate to specify that the activity is recognized only for a period that ends immediately before the particular date.
If, as of a particular date, an activity may be recognized under sections 12.7 to 12.9 and the corporation carried on the activity in an eligible region in the first calendar year covered by the initial qualification certificate it holds, Investissement Québec must amend the qualification certificate to specify that the activity is recognized as of the particular date.
12.6. A business qualification certificate issued to a corporation, for a calendar year, specifies the activities carried on by the corporation in one or more eligible regions in the year that are recognized by Investissement Québec under this chapter. It confirms that the activities constitute a business that is recognized by Investissement Québec for the year for the purposes of the tax credit for job creation in the fields of marine biotechnology, mariculture and marine products processing.
12.7. Subject to section 12.9, an activity may be recognized by Investissement Québec if it is
(1) an activity that consists in manufacturing or processing finished or semi-finished products in the field of marine biotechnology;
(2) a mariculture activity; or
(3) an activity that consists in processing marine products, such as fish and seafood, except where it is carried on in the part of the Bas-Saint-Laurent region that is not included in the territory of Municipalité régionale de comté de Matane.
Any activity, other than a commercialization activity, that is related to an activity referred to in any subparagraph of the first paragraph, such as the technical design of products or production facilities, the receiving or storing of raw materials, or the assembling or handling of goods in process, is deemed to be referred to in that subparagraph.
12.8. A commercialization activity that is carried on by a corporation in a particular calendar year may be recognized by Investissement Québec if the activity is incidental to an activity that is referred to in section 12.7 and carried on in an eligible region in the particular year by the corporation or a corporation associated with it, in the course of a recognized business in relation to that year.
For the purposes of this chapter, a commercialization activity referred to in the first paragraph is deemed to be carried on in an eligible region.
12.9. None of the following activities may be recognized by Investissement Québec:
(1) a marine products processing activity that is carried on in restaurants, hotels, shopping centre fast-food outlets, supermarkets, grocery stores or other similar commercial establishments; and
(2) a scientific research and experimental development activity.
12.10. Investissement Québec may, at the request of a corporation, revoke the initial qualification certificate issued to the corporation if, because of a major unforeseen event, the corporation must cease carrying on activities that are recognized by Investissement Québec for the purposes of this chapter. The revocation becomes effective at the beginning of the calendar year following the calendar year in which the activities ceased.
A decrease in the corporation’s volume of business following the loss of a major client does not constitute a major unforeseen event.
DIVISION III
EMPLOYEE CERTIFICATE
12.11. An employee certificate issued to a corporation under this chapter certifies that the individual referred to in the certificate is recognized as an eligible employee of the corporation for pay periods that end in the calendar year for which the certificate was applied for. The certificate also specifies the number of such pay periods.
If Investissement Québec amends or revokes one or more qualification certificates issued to a corporation for a particular calendar year each of which is either a business qualification certificate or a qualification certificate referred to in subparagraph 1 of the second paragraph of section 11.2, it must make consequential changes by amending or revoking, as applicable, any employee certificate that was issued to the corporation for the particular year and in respect of which activities that are specified in the qualification certificate or certificates so revoked or that are modified by amendment to the qualification certificate or certificates were taken into account.
12.12. An individual may be recognized as an eligible employee of a corporation, for a pay period that ends in a calendar year, if the proportion, expressed as a percentage, that the time spent by the individual during the period in undertaking, supervising or directly supporting the set of activities specified in one or more qualification certificates issued to the corporation for the year, each of which is either a business qualification certificate or a qualification certificate referred to in subparagraph 1 of the second paragraph of section 11.2, is of the time spent by the individual during the period in performing all his or her duties with the corporation is at least 75%.
For the purposes of the first paragraph, the administrative tasks of an individual may not be considered to relate to the activities that are specified in a qualification certificate referred to in that paragraph.
In this section, administrative tasks include tasks relating to operations management, accounting, legal or financial services, communications, public relations, and human and physical resources management. They also include the tasks relating to commercialization, other than those referred to in the first paragraph of any of sections 11.8, 11.12, 11.15 and 12.8.
12.13. If an individual is temporarily absent from work for reasons it considers reasonable, Investissement Québec may, for the purpose of determining whether the individual meets the conditions for recognition as an eligible employee, consider that the individual continued to work and to perform his or her duties throughout the period of absence exactly as he or she was performing them immediately before the beginning of that period.
CHAPTER XIII
SECTORAL PARAMETERS OF TAX CREDIT FOR DEVELOPMENT OF E-BUSINESS
DIVISION I
INTERPRETATION AND GENERAL
13.1. In this chapter, tax credit for the development of e-business means the fiscal measure provided for in Division II.6.0.1.9 of Chapter III.1 of Title III of Book IX of Part I of the Taxation Act, under which a corporation is deemed to have paid an amount to the Minister of Revenue on account of its tax payable under that Part for a taxation year.
13.2. To benefit from the tax credit for the development of e-business, a corporation must obtain the following certificates from Investissement Québec:
(1) a certificate in respect of the corporation (in this chapter referred to as a corporation certificate ); and
(2) a certificate in respect of each individual for whom the corporation claims the tax credit (in this chapter referred to as an employee certificate ).
The certificates must be obtained for each taxation year for which the corporation intends to claim the tax credit.
However, Investissement Québec may issue an employee certificate in respect of an individual to a corporation for a particular taxation year only if a corporation certificate is also issued to the corporation for the year and that certificate covers the whole year or, if applicable, the part of the year for which the individual meets the conditions of section 13.10.
If, at a particular time, Investissement Québec revokes a corporation certificate issued to a corporation for a taxation year, any employee certificate issued to the corporation for that year is also deemed to be revoked by Investissement Québec at that time. In such a case, the effective date of the deemed revocation is the date of coming into force of the employee certificate that is deemed to be revoked. If, in the circumstances described in the first or second paragraph of section 13.8, Investissement Québec changes the part of a taxation year that is specified in a corporation certificate, it must, if applicable, make consequential changes by amending or revoking any employee certificate issued to the corporation in relation to that year.
Investissement Québec may not issue a certificate referred to in the first paragraph to a corporation for a taxation year that begins after 31 December 2015.
DIVISION II
CORPORATION CERTIFICATE
13.3. A corporation certificate issued to a corporation for a taxation year certifies that the corporation meets the following criteria for the year or, if the first or second paragraph of section 13.8 applies, for the part of the year specified in the certificate:
(1) the criteria relating to activities;
(2) the criterion relating to services provided; and
(3) the criterion relating to the maintenance of a minimum number of jobs.
The part of the taxation year that, if applicable, is specified in the certificate corresponds to a part of the year that either is described in subparagraph 1 or 2 of the first paragraph of section 13.8 or meets the conditions of subparagraphs 1 and 2 of the second paragraph of that section.
The certificate also specifies, if applicable, the proportion of gross revenue deriving from the activities referred to in subparagraph 7 of the first paragraph of section 13.5 that is attributable to applications developed by the corporation to be used exclusively outside Québec.
13.4. The criteria relating to activities are met if the proportion of the corporation’s gross revenue deriving from eligible activities in the information technology sector is at least 75% and the proportion of its gross revenue deriving from activities referred to in subparagraphs 5 and 7 to 9 of the first paragraph of section 13.5 is at least 50%.
The criteria are considered to be met for a particular taxation year of the corporation if they are met for the corporation’s preceding taxation year or, if the first or second paragraph of section 13.8 applies to that preceding year, for a part of that preceding year that either is referred to in subparagraph 1 or 2 of that first paragraph or meets the conditions of subparagraphs 1 and 2 of that second paragraph.
However, if the preceding taxation year has less than 183 days, the second paragraph is to be read as follows:
The criteria are considered to be met for a particular taxation year of the corporation if they are met for its most recent previous taxation year that has at least 183 days.
Similarly, a part of a taxation year is taken into consideration for the purposes of the second paragraph only if it has at least 183 days.
13.5. The following activities are eligible activities of the information technology sector:
(1) computer and peripheral equipment manufacturing activities included in the group described under code 334110 of the North American Industry Classification System (NAICS) - Canada, as amended from time to time and published by Statistics Canada, which code is in this paragraph referred to as the NAICS code ;
(2) radio and television broadcasting and wireless communications equipment manufacturing activities included in the group described under NAICS code 334220;
(3) activities carried on by computer, computer peripheral and pre-packaged software wholesaler-distributors included in the group described under NAICS code 417310;
(4) activities carried on by computer and software stores included in the group described under NAICS code 443120;
(5) activities carried on by software publishers included in the group described under NAICS code 511210;
(6) activities consisting in data processing, hosting and related services included in the group described under NAICS code 51821;
(7) activities consisting in computer systems design and related services included in the group described under NAICS code 541510;
(8) subject to the second paragraph, activities consisting in temporary help services included in the group described under NAICS code 561320; and
(9) subject to the second paragraph, activities carried on by professional employer organizations included in the group described under NAICS code 561330.
However, the following activities do not constitute eligible activities of the information technology sector:
(1) any activity that, but for this subparagraph, would be described in subparagraph 8 or 9 of the first paragraph and that either consists in providing employees who do not mainly carry on activities described in subparagraphs 1 to 7 of that paragraph, or is carried on on behalf of a client with whom the corporation is not dealing at arm’s length; and
(2) any other activity that, but for this subparagraph, would be described in subparagraph 8 or 9 of the first paragraph, if, for the taxation year or the part of year concerned, the corporation’s gross revenue deriving from the set of its activities that would be described in those subparagraphs if no reference was made to this paragraph is equal to or greater than the corporation’s gross revenue deriving from the set of its activities described in subparagraphs 5 and 7 of the first paragraph.
In addition, for a taxation year of a corporation whose first day is prior to 30 October 2010 and that either begins or ends in that calendar year, the activities described in subparagraphs 8 and 9 of the first paragraph constitute eligible activities of the information technology sector only if the corporation made an election under section 13.14.
13.6. The criterion relating to services provided is met if at least 75% of the corporation’s gross revenue deriving from activities described in subparagraph 7 of the first paragraph of section 13.5 is attributable to the following services provided by the corporation:
(1) services whose ultimate beneficiary is a person or a partnership with whom the corporation is dealing at arm’s length; and
(2) services that relate to an application developed by the corporation and used exclusively outside Québec.
For the purposes of the first paragraph, services provided by a corporation to a member of a cooperative or of a federation of cooperatives are considered to be services provided to a person with whom the corporation is not dealing at arm’s length if the corporation is not dealing at arm’s length with the cooperative or federation of cooperatives.
The particular person or partnership who directly or indirectly uses the applications developed by a corporation following the provision of services by the corporation to that person or partnership as part of activities referred to in the first paragraph is considered to be the ultimate beneficiary of those services, not the customers of the particular person or partnership.
For the purposes of this section and the third paragraph of section 13.3, Investissement Québec may consider that a corporation developed an application that is used exclusively outside Québec if it is of the opinion that the use of that application in Québec is insignificant in proportion to its overall use. To that end, Investissement Québec must take into account the impact that such a decision would likely have on the growth of activities in Québec that are related to the use of such an application and the impact of the increase of those activities on the competitiveness of businesses that carry on similar activities in Québec.
In this section, for the purpose of determining whether a corporation is considered not to be dealing at arm’s length with another person or partnership, in addition to subparagraph 3 of section 5 of this Act, the following rules apply:
(1) a corporation is deemed not to be dealing at arm’s length with another person or partnership if the corporation has, in respect of the other person or partnership, a significant influence deriving from a particular agreement; and
(2) if a corporation is not dealing at arm’s length with another person or partnership and the other person or partnership has, in respect of a third person or partnership, a significant influence deriving from a particular agreement, the corporation is deemed not to be dealing at arm’s length with the third person or partnership.
For the purposes of the fifth paragraph, a significant influence deriving from a particular agreement means an influence deriving from an agreement that is a franchise, licence, lease, distribution, supply or management agreement or other similar agreement or arrangement the main purpose of which is to govern the relationship between a particular person or partnership and another person or partnership with regard to the carrying on of the business of the other person or partnership, such that, were the influence exercised, the particular person or partnership would, in fact, control the other person or partnership.
13.7. The criterion relating to the maintenance of a minimum number of jobs is met if, throughout the taxation year or part of year concerned, there are at least six individuals, among the individuals working for the corporation, who meet the conditions of the first paragraph of section 13.10.
The criterion relating to the maintenance of a minimum number of jobs is deemed to be met if the corporation establishes to Investissement Québec’s satisfaction that it does not otherwise meet the criterion because of exceptional circumstances beyond the corporation’s control, such as the departure of employees and the impossibility of immediately filling the positions left vacant. Circumstances relating to a business start-up or a transfer of activities do not in themselves constitute exceptional circumstances.
Investissement Québec is justified in revoking the corporation certificate issued to a corporation because of the application of the presumption provided for in the second paragraph, if it ascertains that the corporation did not fill the vacant positions within a time that may be considered reasonable, particularly given the availability of skilled labour. In such a case, the effective date of the revocation is the date of coming into force of the corporation certificate.
13.8. If, at any time in a particular taxation year, activities until then carried on by a person or a partnership are the subject of a particular transfer to another person or partnership and, taking the whole particular year into consideration, it appears that a corporation involved in the transfer did not meet the criteria set out in sections 13.4 to 13.7, the criteria may, for the purpose of determining whether the corporation is entitled to obtain a corporation certificate for the particular year, be applied only to a part of the year that is described in either of the following subparagraphs:
(1) if the corporation is the transferor, the part of the particular year that begins at the same time as the particular year and that ends on the day preceding the day of the particular transfer; or
(2) if the corporation is the transferee, a part of the particular year that begins on the day of the particular transfer and that ends on the last day of that year or, if it is earlier, the day preceding the day of any other particular transfer of activities in which the corporation is involved.
If a corporation has, at any time, begun to carry on activities referred to in section 13.11 as part of a new business and, taking into consideration the whole particular taxation year included, at least in part, in the start-up period of the business, it appears that the corporation does not meet the criteria set out in sections 13.4 to 13.7, the criteria may, for the purpose of determining whether the corporation is entitled to obtain a corporation certificate for the particular year, be applied only to a part of the year that meets the following conditions:
(1) it is included in a portion of the particular year throughout which there are at least six individuals, among the individuals working for the corporation, who meet the conditions of the first paragraph of section 13.10; and
(2) it ends at the end of the particular year or, if it is earlier, on the day preceding the day of any particular transfer of activities in which the corporation is involved.
However, the second paragraph does not apply if a corporation certificate was issued to the corporation for a preceding taxation year.
For the purposes of this section, particular transfer of activities at any time in a taxation year of a corporation means a transfer, including a transfer deriving from the winding-up of a corporation, relating to activities which, at that time, would require the work of at least six individuals who meet the conditions of the first paragraph of section 13.10, if only those activities were taken into account.
DIVISION III
EMPLOYEE CERTIFICATE
13.9. An employee certificate issued to a corporation certifies that the individual referred to in the certificate is recognized as an eligible employee of the corporation for the taxation year for which the application for the certificate was made or for the part of the year specified in it.
13.10. An individual may be recognized as an eligible employee of a corporation, if
(1) the individual works full-time for the corporation, that is, at least 26 hours per week, for an expected minimum period of 40 weeks; and
(2) the individual spends at least 75% of working time performing duties that consist in undertaking, supervising or directly supporting eligible activities of the corporation or, if the individual’s services are lent to a client of the corporation as part of a temporary help agreement, eligible activities of the client.
For the purposes of subparagraph 2 of the first paragraph, an individual’s administrative tasks may not be considered to be part of duties that consist in undertaking, supervising or directly supporting eligible activities.
Where, for a taxation year of a corporation whose first day is prior to 30 October 2010 and that either begins or ends in that calendar year, the percentage of the working time spent by an individual in performing duties that consist in undertaking, supervising or directly supporting eligible activities must be determined in accordance with subparagraph 2 of the first paragraph, the activities of a client of the corporation must be taken into account only if the corporation made an election under section 13.14.
In this section, administrative tasks include tasks relating to operations management, accounting, finance, legal affairs, public relations, communications, contract solicitation, and human and physical resources management.
13.11. Subject to section 13.12, each of the following activities is an eligible activity:
(1) information technology consulting services relating to technology or systems development, or consulting services in e-business processes and solutions, such as strategic planning, business process reconfiguration and technology architecture design;
(2) the development or integration of information systems, such as distribution packages and computer software and programs, or of technology infrastructures, such as technology architecture upgrading and integration of hardware and software components, as well as, to the extent that it is incidental to such a development or integration activity carried on by the corporation, any activity relating to the maintenance or evolution of such information systems or such technology infrastructures;
(3) the design or development of e-commerce solutions, such as portals, search engines and transactional websites; and
(4) the development of security and identification services, such as electronic imaging, artificial intelligence and interface, that are related to e-business activities, such as Internet security.
For the purposes of subparagraph 2 of the first paragraph, an activity relating to the maintenance or evolution of information systems or of technology infrastructures also includes any activity required for the proper operation of systems and infrastructures or required to resolve or prevent problems or incidents, provided that the activity is
(1) a technical corrective or preventive intervention that modifies one or more technical aspects of the components, including computerized processes; or
(2) a diagnostic activity, with remote access and control of systems and technology infrastructures, that leads directly or indirectly to a technical intervention referred to in subparagraph 1.
However, for the purpose of determining, for a taxation year of a corporation whose first day is prior to 30 October 2010 and that either begins or ends in that calendar year, whether an activity is an eligible activity, the second paragraph is taken into consideration only if the corporation made an election under section 13.14.
13.12. The following activities are not eligible activities:
(1) activities unrelated to e-business;
(2) the operation of an e-business solution, such as the processing of electronic transactions through a transactional website;
(3) the management or operation of computer systems, applications or infrastructures stemming from e-business activities, namely,
(a) the management of e-business processing centres,
(b) the management of remote operations centres,
(c) the management of networks and systems, including systems monitoring,
(d) the operation of business process outsourcing services related to the operation of an e-business solution (back office), and
(e) the management of business processes associated with the internal operation of an e-business solution (internal back office);
(4) the operation of a customer relations centre, namely,
(a) the operation of an existing customer relations management service stemming from e-business activities, and
(b) the operation of a first-level administrative or technical assistance service for businesses and customers, related to the use of an e-business solution, such as taking calls or emails, user support in the use of systems, applications and features, monitoring and recording of requests, initial diagnosis and advice to resolve incidents or problems, referral of information concerning such incidents or problems to more specialized persons for resolution, and resetting passwords;
(5) hardware installation; and
(6) training.
However, the first paragraph does not operate to exclude an activity described in subparagraph 2 of the first paragraph of section 13.11 because of the application of the second paragraph of that section.
In addition, for the purpose of determining, for a taxation year of a corporation whose first day is prior to 30 October 2010 and that either begins or ends in that calendar year, the activities that do not constitute eligible activities, the corporation must have made an election under section 13.14 in order for subparagraph a of subparagraph 4 of the first paragraph to be taken into consideration otherwise than as an example of activities consisting in the operation of a customer relations centre and for the following provisions of that first paragraph to be taken into account:
(1) subparagraphs a to e of subparagraph 3;
(2) subparagraph b of subparagraph 4; and
(3) subparagraphs 5 and 6.
13.13. If an individual is temporarily absent from work for reasons it considers reasonable, Investissement Québec may, for the purpose of determining whether the individual meets the conditions of the first paragraph of section 13.10 for recognition as an eligible employee, consider that the individual continued to perform his or her duties throughout the period of absence exactly as he or she was performing them immediately before the beginning of that period. In such a case, the individual is deemed, for the purposes of the first paragraph of section 13.7 and subparagraph 1 of the second paragraph of section 13.8 to be included, throughout the period of absence, in the group of individuals who work for the corporation.
DIVISION IV
SPECIAL RULE
13.14. For a taxation year whose first day is prior to 30 October 2010 and that either begins or ends in that calendar year, a corporation may file an election in writing with Investissement Québec, on or before the last day of the 15th month following the end of that taxation year, to have the activities or provisions referred to in the third paragraph of sections 13.5 and 13.10 to 13.12 taken into consideration to the extent and for the purposes provided for in each of those paragraphs.
2012, c. 1, Schedule A.
MINISTER OF AGRICULTURE, FISHERIES AND FOOD
CHAPTER I
MEASURES COVERED BY THIS SCHEDULE
1.1. The Minister of Agriculture, Fisheries and Food administers the sectoral parameters of the tax credit for the acquisition of pig manure treatment facilities provided for in sections 1029.8.36.53.10 to 1029.8.36.53.20 of the Taxation Act (chapter I-3).
CHAPTER II
SECTORAL PARAMETERS OF TAX CREDIT FOR ACQUISITION OF PIG MANURE TREATMENT FACILITIES
DIVISION I
INTERPRETATION AND GENERAL
2.1. In this chapter, tax credit for the acquisition of pig manure treatment facilities means the fiscal measure provided for in Division II.6.4.2 of Chapter III.1 of Title III of Book IX of Part I of the Taxation Act, under which a taxpayer is deemed to have paid an amount to the Minister of Revenue on account of the taxpayer’s tax payable under that Part for a taxation year.
2.2. To benefit from the tax credit for the acquisition of pig manure treatment facilities, in respect of a facility, a person or, if the person claims the credit as a member of a partnership, the partnership must obtain a certificate in respect of the facility (in this chapter referred to as a facility certificate ) from the Minister.
DIVISION II
FACILITY CERTIFICATE
2.3. Before the installation of a facility begins, the person or partnership applying for a facility certificate in its respect must file the following documents with the Minister:
(1) the required authorizations from the Minister of Sustainable Development, Environment and Parks;
(2) the required authorizations from municipal authorities; and
(3) the plans and specifications for the facility, prepared by an engineer.
2.4. A facility certificate issued to a person or a partnership certifies that the facility referred to in the certificate is recognized as an eligible facility in relation to a farming establishment of the person or partnership.
2.5. The Minister may issue a facility certificate to a person or a partnership only if the person or partnership
(1) is a pig producer or carries on a mixed business that produces pigs or whose purpose is pig production and is recognized by the Minister for that purpose;
(2) is registered with the Minister under the Regulation respecting the registration of agricultural operations and the payment of property taxes and compensations (chapter M-14, r. 1); and
(3) manages a minimum of 4 m3 of pig manure daily.
2.6. To be recognized as an eligible facility in relation to a farming establishment of a person or partnership, a facility must
(1) be the subject of plans and specifications prepared by an engineer and filed with the Minister before the work begins;
(2) be installed in Québec at the farming establishment of the person or partnership;
(3) not be eligible for the Prime-Vert program adopted under section 2 of the Act respecting the Ministère de l’Agriculture, des Pêcheries et de l’Alimentation (chapter M-14) and administered by the Minister;
(4) be designed to treat manure so as to concentrate its fertilizing elements into smaller volumes and facilitate its disposal; and
(5) be
(a) equipment needed to treat manure, or
(b) a component of an infrastructure that facilitates the treatment of manure, or a new or renovated building resulting from the work required to install such an infrastructure.
For the purposes of subparagraph b of subparagraph 5 of the first paragraph, the Minister determines what additional components are needed so the infrastructure meets the conditions of subparagraphs 1 to 4 of that paragraph, as well as the proportion of each of those components that may reasonably be attributed to the implementation of the manure treatment process.
2.7. With respect to a building where the management of animal waste is carried out on bedding, the following cannot be recognized as eligible facilities:
(1) any structure resulting from the modification of a building to install feces and urine separation equipment under slats; and
(2) any manure storage structure serving the building.
Solid manure storage structures and scrapers or belts used to separate feces and urine may, however, be recognized as eligible facilities.
DIVISION III
VERIFICATION
2.8. After a facility has been installed, the person or partnership to whom a facility certificate was issued in respect of the facility must provide the Minister with all the information needed to verify whether the facility is in compliance with the previously filed plans and specifications.
2.9. The Minister must, among other things, verify whether a facility, after it has been installed at the farming establishment of the person or partnership to whom a facility certificate was issued in respect of the facility, is in compliance with the plans and specifications prepared by an engineer and filed with the Minister before the work began, in order to make sure that the facility meets the conditions for recognition as an eligible facility.
2012, c. 1, Schedule B.
MINISTER OF ECONOMIC DEVELOPMENT, INNOVATION AND EXPORT TRADE
CHAPTER I
MEASURES COVERED BY THIS SCHEDULE
1.1. The Minister of Economic Development, Innovation and Export Trade administers the sectoral parameters of the following fiscal measures:
(1) the deferral of the taxation of a qualified patronage dividend provided for in sections 726.27 to 726.29 of the Taxation Act (chapter I-3);
(2) the deduction in respect of a foreign researcher provided for in sections 737.19 to 737.22 of the Taxation Act;
(3) the deduction in respect of foreign experts provided for in sections 737.22.0.0.5 to 737.22.0.0.8 of the Taxation Act;
(4) the deduction in respect of the second cooperative investment plan provided for in sections 726.4 and 965.39.1 to 965.39.7 of the Taxation Act;
(5) the refundable tax credit for university research and for research carried on by a public research centre or a research consortium and the tax credit for fees and dues paid to a research consortium provided for in sections 1029.8.1 to 1029.8.7 and 1029.8.9.0.2 to 1029.8.9.0.4 of the Taxation Act;
(6) the tax credit for private partnership pre-competitive research provided for in sections 1029.8.16.1.1 to 1029.8.16.1.9 of the Taxation Act;
(7) the design tax credit provided for in sections 1029.8.36.4 to 1029.8.36.28 of the Taxation Act;
(8) the tax credit for the construction or conversion of vessels and the tax holiday on capital in respect of the construction or conversion of vessels provided for in sections 1029.8.36.54 to 1029.8.36.59, 1130, 1137, 1137.1, 1137.1.1 and 1137.7 of the Taxation Act; and
(9) the tax holiday for a corporation dedicated to the commercialization of intellectual property provided for in sections 771, 771.1, 771.1.1, 771.8.5.1, 771.14 and 771.15 of the Taxation Act.
CHAPTER II
SECTORAL PARAMETERS OF DEFERRAL OF TAXATION OF QUALIFIED PATRONAGE DIVIDEND
DIVISION I
INTERPRETATION AND GENERAL
2.1. In this Chapter,
shareholding workers cooperative has the meaning assigned by the first paragraph of section 2 of the Cooperative Investment Plan Act (chapter R-8.1.1);
deferral of the taxation of a qualified patronage dividend means the fiscal measure provided for in Title VI.9 of Book IV of Part I of the Taxation Act, under which a person may defer the taxation of a patronage dividend until the disposition of the related preferred share.
2.2. A cooperative or a federation of cooperatives must obtain a certificate from the Minister so that the patronage dividends it pays in respect of a taxation year in the form of preferred shares may give rise to the deferral of the taxation of a qualified patronage dividend. The certificate is valid only for the taxation year for which it is obtained.
DIVISION II
CERTIFICATE
2.3. An application for a certificate must be filed with the Minister within six months after the end of the taxation year for which it is made.
However, if the circumstances so warrant, the Minister may grant an application despite the expiry of the time limit specified in the first paragraph, provided that the application is filed by the end of the 12th month following the end of the taxation year concerned.
2.4. An application for a certificate must be accompanied by
(1) a statement, signed by two directors or officers of the cooperative or federation of cooperatives having filed the application, certifying either that the cooperative meets the criteria set out in subparagraphs 1 and 2 of the first paragraph of section 2.6 and, if applicable, in the third paragraph of that section, or that the federation of cooperatives meets the criteria set out in paragraphs 1 and 2 of section 2.7, as the case may be;
(2) any other information required in relation to the qualification of the cooperative or federation of cooperatives.
2.5. A certificate issued to a cooperative or a federation of cooperatives under this chapter confirms that the cooperative or federation of cooperatives is recognized as a qualified cooperative for the taxation year for which the application for the certificate was made.
2.6. A cooperative governed by the Cooperatives Act (chapter C-67.2) may be recognized as a qualified cooperative for a taxation year if
(1) it meets the conditions of subparagraphs 1 and 2 of the first paragraph of section 3 of the Cooperative Investment Plan Act for the taxation year;
(2) at the end of the taxation year, the majority of its members are either domiciled in Québec if they are natural persons, or have an establishment in Québec, in other cases; and
(3) the Minister is of the opinion that the cooperative is in compliance with the Cooperatives Act for the taxation year.
Supporting members, auxiliary members and associate members, within the meaning assigned to those expressions by the Cooperatives Act, are not members for the purposes of subparagraph 2 of the first paragraph.
In addition, if the cooperative is a shareholding workers cooperative, the corporation in which it holds shares and that employs its members must also meet the condition of subparagraph 1 of the second paragraph of section 3 of the Cooperative Investment Plan Act at the end of its last taxation year that ended before the taxation year for which the cooperative files an application for a certificate.
For the purposes of the third paragraph, in the case of a corporation that is in its first fiscal period, the reference to its last taxation year that ended before the taxation year for which the cooperative files an application for a certificate is to be read as a reference to its first fiscal period, if the Minister is satisfied that the corporation will meet, for that first fiscal period, the condition referred to in that paragraph.
2.7. A federation of cooperatives governed by the Cooperatives Act may be recognized as a qualified cooperative for a taxation year if
(1) it meets the conditions of paragraphs 1 and 2 of section 4 of the Cooperative Investment Plan Act for the taxation year;
(2) at the end of the taxation year, the majority of its members are either domiciled in Québec if they are natural persons, or have an establishment in Québec, in other cases; and
(3) the Minister is of the opinion that the federation is in compliance with the Cooperatives Act for the taxation year.
2.8. A cooperative or federation of cooperatives governed by the Canada Cooperatives Act (S.C. 1998, c. 1) may also be recognized as a qualified cooperative for a taxation year if it meets the conditions of section 2.6 or 2.7, as applicable, and complies with the same requirements as those imposed on a cooperative or a federation of cooperatives under the Cooperatives Act.
DIVISION III
REVOCATION OF CERTIFICATE
2.9. The Minister is justified in revoking a certificate issued to a cooperative or a federation of cooperatives if the cooperative or federation has been required to produce a cooperative compliance program under section 185.5 of the Cooperatives Act or has failed to produce such a program or to implement it within the time prescribed.
2.10. A cooperative or federation of cooperatives whose certificate has been revoked may not obtain a new certificate before the expiry of a 36-month period following the effective date of the revocation.
CHAPTER III
SECTORAL PARAMETERS OF DEDUCTION IN RESPECT OF FOREIGN RESEARCHERS
DIVISION I
INTERPRETATION AND GENERAL
3.1. In this chapter, unless the context indicates otherwise,
eligible employer means a person or partnership who declares to the Minister that the person or partnership is carrying on a business in Canada and undertaking or causing to be undertaken on the person’s or partnership’s behalf in Québec scientific research and experimental development related to a business of the person or partnership and that the person or partnership is neither an eligible university entity within the meaning of section 2.1 of Schedule D, nor a person exempt from tax under section 984 or 985 of the Taxation Act or that would be exempt from tax under that section 985 but for section 192 of that Act;
foreign researcher tax holiday means the fiscal measure provided for in Title VII.3 of Book IV of Part I of the Taxation Act, under which an individual may deduct an amount in computing the individual’s taxable income for a taxation year.
3.2. In order for an individual who works for an eligible employer to benefit from the foreign researcher tax holiday for a taxation year, the eligible employer must obtain a qualification certificate in respect of the foreign researcher (in this chapter referred to as a researcher qualification certificate ) from the Minister.
The employer must file an application for the qualification certificate before 1 March of the calendar year that follows the individual’s taxation year for which he or she first claims the tax holiday.
DIVISION II
RESEARCHER QUALIFICATION CERTIFICATE
3.3. A researcher qualification certificate issued to an eligible employer certifies that the individual referred to in the certificate is recognized as a researcher.
3.4. To be recognized as a researcher, an individual must
(1) be specialized in the field of pure or applied science or a related field;
(2) hold, or possess knowledge equivalent to the knowledge acquired by the holder of, a Master’s degree recognized by a Québec university in any of the fields referred to in paragraph 1; and
(3) have the skills required to carry out scientific research and experimental development activities.
3.5. An eligible employer to which a researcher qualification certificate is issued must promptly send a copy of the certificate to the individual concerned so that it may be attached to his or her fiscal return.
CHAPTER IV
SECTORAL PARAMETERS OF DEDUCTION IN RESPECT OF FOREIGN EXPERTS
DIVISION I
INTERPRETATION AND GENERAL
4.1. In this chapter, unless the context indicates otherwise,
eligible employer means a person or partnership who declares to the Minister that the person or partnership is carrying on a business in Canada for the period in which the person or partnership undertakes or causes to be undertaken on the person’s or partnership’s behalf in Québec, as part of a project, scientific research and experimental development related to a business of the person or partnership, as well as for the periods preceding and following the carrying out of the project, and that the person or partnership is neither an eligible university entity within the meaning of section 2.1 of Schedule D, nor a person mentioned in section 984 or 985 of the Taxation Act;
foreign expert tax holiday means the fiscal measure provided for in Title VII.3.0.2 of Book IV of Part I of the Taxation Act, under which an individual may deduct an amount in computing the individual’s taxable income for a taxation year.
4.2. In order for an individual who works for an eligible employer to benefit from the foreign expert tax holiday for a taxation year, the eligible employer must obtain a qualification certificate in respect of the individual (in this chapter referred to as an expert qualification certificate ) from the Minister. The certificate must be obtained for each taxation year for which the individual may claim the tax holiday.
The employer must file an application for the qualification certificate before 1 March of the calendar year that follows the individual’s taxation year concerned.
DIVISION II
EXPERT QUALIFICATION CERTIFICATE
4.3. An expert qualification certificate issued to an eligible employer certifies that the individual referred to in the certificate is recognized as an expert in respect of the employer for the taxation year for which the application for the qualification certificate was made or for the part of the year specified in it.
4.4. In order for an individual to be recognized as an expert in respect of an eligible employer, the individual must
(1) be specialized in a field appropriate to the valorization of scientific research and experimental development results;
(2) hold, or possess knowledge equivalent to the knowledge acquired by the holder of, a diploma recognized by a Québec university in a field referred to in paragraph 1;
(3) have the skills required to carry out activities that consist in the valorization of the results deriving from the employer’s scientific research and experimental development projects, which activities include
(a) the management of innovation resulting from those projects,
(b) the commercialization and marketing of the results deriving from those projects,
(c) the transfer of advanced technologies resulting from those projects,
(d) the financing of scientific research and experimental development activities; and
(4) have duties with the employer that consist exclusively or almost exclusively, on a continuous basis, in carrying on activities that consist in the valorization of the results deriving from the employer’s scientific research and experimental development projects.
4.5. If an individual is temporarily absent from work for reasons the Minister considers reasonable, the Minister may, for the purpose of determining whether the individual meets the conditions for recognition as an expert in respect of an eligible employer, consider that the individual continued to perform his or her duties throughout the period of absence exactly as he or she was performing them immediately before the beginning of that period.
4.6. An eligible employer to which an expert qualification certificate is issued for a taxation year must promptly send a copy of the certificate to the individual concerned so that it may be attached to his or her fiscal return for the year.
CHAPTER V
SECTORAL PARAMETERS OF DEDUCTION IN RESPECT OF SECOND COOPERATIVE INVESTMENT PLAN
DIVISION I
INTERPRETATION AND GENERAL
5.1. In this chapter, capitalization rate , expansion or development project , qualified cooperative , qualified federation of cooperatives , shareholding workers cooperative , solidarity cooperative , supporting member and work cooperative have the meaning assigned by the first paragraph of section 2 of the Cooperative Investment Plan Act, and qualified investor has the meaning assigned by section 9 of that Act.
Similarly, deduction in respect of the second cooperative investment plan means the fiscal measure provided for in Title VI.3 of Book IV of Part I of the Taxation Act and in Title VI.3.1 of Book VII of that Part, under which an individual may deduct an amount in computing his or her taxable income for a taxation year, in respect of a preferred share, issued for the purposes of the Cooperative Investment Plan Act, that the individual acquired or is deemed to have acquired.
5.2. A cooperative or a federation of cooperatives must obtain a qualification certificate from the Minister to be authorized to issue, for the purposes of the Cooperative Investment Plan Act, preferred shares the acquisition of which may allow individuals to benefit from the deduction in respect of the second cooperative investment plan.
DIVISION II
QUALIFICATION CERTIFICATE
5.3. An application for a qualification certificate authorizing a cooperative or a federation of cooperatives to issue preferred shares for the purposes of the Cooperative Investment Plan Act must be accompanied by
(1) an excerpt from the by-law of the cooperative or federation of cooperatives authorizing the issue of preferred shares;
(2) a copy of the resolution of the board of directors determining how the preferred shares are to be issued;
(3) a statement signed by two directors certifying that the conditions of subparagraphs 1 to 4 of the first paragraph of section 3 of the Cooperative Investment Plan Act or paragraphs 1 to 4 of section 4 of that Act have been met;
(4) a statement signed by two directors certifying that the conditions of the second paragraph of section 3 of the Cooperative Investment Plan Act have been met;
(5) the following information and documents:
(a) a certificate signed by the auditor of the books of the cooperative or federation of cooperatives certifying that its capitalization rate is less than 60%, except in the case of a work cooperative, a shareholding workers cooperative or a solidarity cooperative that would be a work cooperative but for its supporting members, or
(b) the information and documents specified in the second paragraph in respect of an expansion or development project;
(6) a certificate signed by the auditor of the books of the cooperative or federation of cooperatives certifying that the condition of subparagraph 6 of the first paragraph of section 3 of the Cooperative Investment Plan Act or paragraph 6 of section 4 of that Act has been met;
(7) a copy of the last annual report of the cooperative or federation of cooperatives, subject, in the case of a cooperative, to the third paragraph of section 3 of the Cooperative Investment Plan Act; and
(8) any other information required in relation to the qualification of the cooperative or federation of cooperatives.
The information and documents to which subparagraph b of subparagraph 5 of the first paragraph refers in respect of an expansion or development project are the following:
(1) a detailed description of the project;
(2) the date on which the project is to begin;
(3) the expected value of the share issue in relation to the total cost of the project; and
(4) a statement signed by two directors confirming that the cooperative or federation of cooperatives is in the process of carrying out the project in accordance with the information and documents referred to in subparagraphs 1 to 3 and confirming the effect of the project on the capitalization rate and the volume of business of the cooperative or federation of cooperatives.
5.4. A qualification certificate issued to a cooperative or a federation of cooperatives under this chapter certifies that the cooperative or federation of cooperatives is authorized to issue preferred shares for the purposes of the Cooperative Investment Plan Act. If applicable, the qualification certificate also specifies that the authorization results from an exemption obtained in accordance with section 17 of that Act.
If a qualification certificate is issued under this chapter by reason of an exemption obtained in accordance with section 17 of the Cooperative Investment Plan Act, its period of validity ends at the expiry of the 12-month period that follows its date of issue.
5.5. The Minister issues a qualification certificate to a cooperative or a federation of cooperatives under this chapter if the Minister is of the opinion, as applicable, that
(1) the cooperative is a qualified cooperative;
(2) the federation of cooperatives is a qualified federation of cooperatives; or
(3) the cooperative or federation of cooperatives, as the case may be, meets the requirements of section 5 of the Cooperative Investment Plan Act.
DIVISION III
REVOCATION OF QUALIFICATION CERTIFICATE
5.6. The Minister is justified in revoking a qualification certificate issued to a cooperative or a federation of cooperatives under this chapter or the Cooperative Investment Plan Act, if
(1) the cooperative or federation of cooperatives has issued securities to an investor who is not a qualified investor;
(2) the cooperative or federation of cooperatives, knowingly or under circumstances amounting to gross negligence, has made a false statement or omitted to enter important information in any document required for the purposes of the Cooperative Investment Plan Act or in any information return it is required to file with the Minister of Revenue under section 1086 of the Taxation Act;
(3) the cooperative or federation of cooperatives has omitted to send any document required for the purposes of this Act or the Cooperative Investment Plan Act;
(4) the cooperative or federation of cooperatives, being governed by the Cooperatives Act or the Canada Cooperatives Act, did not send a copy of its annual report within the time prescribed, as required by the Cooperatives Act or the Cooperative Investment Plan Act;
(5) the cooperative or federation of cooperatives was constituted or organized primarily to take advantage of the cooperative investment plan and not to serve its object; or
(6) the cooperative or federation of cooperatives has been required to produce a cooperative compliance program under section 185.5 of the Cooperatives Act or has failed to produce such a program or to implement it within the time prescribed.
5.7. The effective date of the revocation of a qualification certificate issued under this chapter or under the Cooperative Investment Plan Act may not be earlier than the date of the notice of revocation. The notice must be sent to the head office of the cooperative or federation of cooperatives by registered mail.
5.8. The qualification certificate of a cooperative or a federation of cooperatives issued under this chapter or under the Cooperative Investment Plan Act is deemed to be revoked on the date of its dissolution or, if the cooperative or federation of cooperatives is dissolved under the Act respecting the legal publicity of enterprises (chapter P-44.1), the Cooperatives Act or the Canada Cooperatives Act or has decided to wind-up in accordance with the Cooperatives Act or the Canada Cooperatives Act, on the date on which its liquidation was decided.
5.9. The qualification certificate of a cooperative or a federation of cooperatives issued under this chapter or under the Cooperative Investment Plan Act is deemed to be revoked on the effective date of an amalgamation to which the cooperative or federation of cooperatives is party
(1) that is carried out in accordance with the rules set out in Division II or Division V of Chapter XXI of Title I of the Cooperatives Act;
(2) that is carried out in accordance with the rules set out in Division III of that Chapter XXI, where the cooperative or federation is the absorbed cooperative or federation;
(3) that is carried out in accordance with the rules set out in sections 295 to 297 of the Canada Cooperatives Act;
(4) that is carried out in accordance with the rules set out in subsection 1 of section 298 of that Act, where the cooperative or federation is a wholly-owned subsidiary cooperative; or
(5) that is carried out in accordance with the rules set out in subsection 2 of that section 298, where the cooperative or federation is a subsidiary whose shares have been cancelled.
5.10. A cooperative or federation of cooperatives whose qualification certificate has been revoked may not obtain a new qualification certificate before the expiry of a 36-month period following the effective date of the revocation.
CHAPTER VI
SECTORAL PARAMETERS OF TAX CREDIT FOR RESEARCH CARRIED ON BY RESEARCH CONSORTIUM AND OF TAX CREDIT FOR FEES AND DUES PAID TO RESEARCH CONSORTIUM
DIVISION I
INTERPRETATION AND GENERAL
6.1. In this chapter, unless the context indicates otherwise,
research consortium means a non-profit private research centre established in Canada whose members carry on businesses in the same sector of activity or in related sectors of activity;
tax credit for fees and dues paid to a research consortium means the fiscal measure provided for in Division II.2.1 of Chapter III.1 of Title III of Book IX of Part I of the Taxation Act, under which a person is deemed to have paid an amount to the Minister of Revenue on account of the person’s tax payable under that Part for a taxation year;
tax credit for research carried on by a research consortium means the fiscal measure provided for in Division II.2.1 of Chapter III.1 of Title III of Book IX of Part I of the Taxation Act, under which a person is deemed to have paid an amount to the Minister of Revenue on account of the person’s tax payable under that Part for a taxation year.
6.2. To be recognized as an eligible research consortium, for the purposes of the tax credit for research carried on by a research consortium and the tax credit for fees and dues paid to a research consortium, a body must obtain a certificate in its respect (in this chapter referred to as a consortium certificate ) from the Minister.
DIVISION II
CONSORTIUM CERTIFICATE
6.3. A consortium certificate issued to a body certifies that the body is recognized as an eligible research consortium. Such a certificate is valid for an indeterminate period, unless otherwise specified in the certificate.
6.4. In order for a body to be recognized as an eligible research consortium, it must be a research consortium in respect of which the following conditions are met:
(1) the number of members forming the research consortium and their financial contribution are sufficiently representative of a sector of activity;
(2) the public or parapublic bodies operating in that sector of activity that are members of the research consortium do not constitute a majority of its members and do not provide the major part of its financing;
(3) the association agreement of the members of the research consortium requires that a research program concerning the members’ scientific and technological interests be established every year, and provides that the research results obtained will be available to all the members for use and development according to their specific needs;
(4) the mission of the research consortium is to carry on scientific research and experimental development work in Québec that is generic in nature and is not likely to lead to readily marketable results;
(5) the results of scientific research and experimental development work carried on by the research consortium may give rise to applications in various industrial sectors or to products that are commercially different among its members and that vary according to the use and development each may make of those results; and
(6) the research consortium has employees who have the skills required to carry on scientific research and experimental development work and has the premises and equipment needed to carry on that work in Québec.
The condition of subparagraph 3 of the first paragraph is not considered met if the association agreement does not clearly define the manner in which the research results obtained may be used and developed by the members of the research consortium.
The Minister may recognize only one research consortium per sector of activity.
6.5. A body that holds a valid consortium certificate must file a notice of change of status with the Minister if
(1) a change that has occurred in its human or physical resources could compromise its capacity to carry out scientific research and experimental development work;
(2) the composition of the consortium has changed significantly; or
(3) the association agreement of the members of the consortium or the consortium’s mission has been modified.
If a body fails to fulfil its obligation to file a notice of change of status, the Minister may revoke the consortium certificate issued to it.
CHAPTER VII
SECTORAL PARAMETERS OF TAX CREDIT FOR PRIVATE PARTNERSHIP PRE-COMPETITIVE RESEARCH
DIVISION I
INTERPRETATION AND GENERAL
7.1. In this chapter, unless the context indicates otherwise,
research project means a scientific research and experimental development project;
tax credit for private partnership pre-competitive research means the fiscal measure provided for in Division II.3.0.1 of Chapter III.1 of Title III of Book IX of Part I of the Taxation Act, under which a person is deemed to have paid an amount to the Minister on account of the person’s tax payable under that Part for a taxation year.
7.2. To benefit from the tax credit for private partnership pre-competitive research, in respect of a research project, a person or, if the person claims the tax credit as a member of a partnership, the partnership must obtain a certificate in that respect (in this chapter referred to as a research project certificate ) from the Minister. Such a certificate is valid for a maximum period of three years.
DIVISION II
RESEARCH PROJECT CERTIFICATE
7.3. The Minister may not issue a research project certificate in respect of a research project provided for in a partnership agreement unless an application to that effect is filed with the Minister before the beginning of the project.
Despite the first paragraph, the Minister may issue a research project certificate to a person or a partnership in respect of a research project carried out within the scope of a partnership agreement to which the person or partnership is a party if
(1) the application for the certificate is filed with the Minister on or before the 90th day following the day on which the research project began; or
(2) the application for the certificate is filed with the Minister within three years following the day on which the research project began and
(a) the application could not be filed within the time provided in subparagraph 1 for reasons beyond the control of the person or of the members of the partnership,
(b) the application gives the reasons why it could not be filed within such time, and
(c) the Minister considers that the reasons put forward justify the admissibility of the application.
7.4. A research project certificate issued to a person or a partnership certifies that the research project referred to in it is a pre-competitive research project carried out under a partnership agreement to which the person or partnership is a party. The certificate also specifies the date on which its period of validity ends.
7.5. In order for a research project to be considered to be a pre-competitive research project carried out under a partnership agreement to which the person or partnership filing the application for a certificate is a party, the following conditions must be met:
(1) each party to the partnership agreement (in this section referred to as a partner ) has a scientific and technological interest in seeing the research project carried out, and the purpose of the partnership agreement coincides with the respective interests of all the partners, even if their sectors of activity differ;
(2) the partners are on an equal footing and share responsibility for the research project, each partner assuming its own liability, without guaranteeing the liability of the other partners;
(3) the partners pool their contributions to the research project, which contributions may be inputs of equipment, efforts, cash, knowledge or expertise;
(4) the expected duration and the purpose of the research project are defined in the partnership agreement;
(5) the research project affords each partner the possibility of using the results, such that each partner has an interest in seeing the project carried out in order to benefit from the results with a view to enhance its growth;
(6) the research project will affect the partners, whether the project is successful or not;
(7) each partner is entitled to benefit from the research project results, the planned sharing of those results being based on the interests of each partner and having to be coherent with the pursuit of its technological development; in that respect, the partnership agreement must include the obligation to negotiate conditions relating to the rights of each of the partners to exploit the intellectual property deriving from the research project, and must govern the disclosure of information on the obtention of a patent protecting the intellectual property, if applicable;
(8) all the partners participate in managing the research project and no partner is subordinate to another; and
(9) each partner performs a part of the work required to carry out the research project, while participating in the overall research project.
For the purpose of determining whether the condition of subparagraph 8 of the first paragraph is met, the establishment of a management committee and the development of a decision-making or dispute settlement mechanism, which may be provided for in the partnership agreement, are indicators that the research project is managed jointly.
For the purposes of subparagraph 9 of the first paragraph, groups of researchers, developers or engineers are considered to participate in the overall research project if they separately carry out work related to various aspects of the research project and participate in study sessions and discussions to integrate their respective research results in the overall structure of the project.
CHAPTER VIII
SECTORAL PARAMETERS OF DESIGN TAX CREDIT
DIVISION I
INTERPRETATION AND GENERAL
8.1. In this chapter, unless the context indicates otherwise,
design tax credit means the fiscal measure provided for in Division II.6.2 of Chapter III.1 of Title III of Book IX of Part I of the Taxation Act, under which a corporation is deemed to have paid an amount to the Minister of Revenue on account of its tax payable under that Part for a taxation year;
qualified outside consultant means a person or partnership who holds an unrevoked certificate of qualification referred to in subparagraph 1 of the second paragraph of section 8.2 issued by the Minister.
8.2. To benefit from the design tax credit, a corporation or, if it claims the tax credit as a member of a partnership, the partnership must obtain a certificate in respect of a design activity (in this chapter referred to as an activity certificate ) from the Minister. Such a certificate must be obtained, as applicable, for each taxation year in which the corporation intends to claim the tax credit, or for each fiscal period of the partnership that ends in such a taxation year.
In addition, depending on the provision of the design tax credit that the corporation intends to benefit from, a corporation must get a copy of one or more of the following certificates from the persons or partnerships concerned:
(1) the certificate of qualification as a qualified outside consultant (in this chapter referred to as a consultant certificate ) obtained from the Minister by a person or partnership who entered into a contract as a qualified outside consultant with the corporation or the partnership of which the corporation is a member;
(2) the certificate of qualification as a qualified designer (in this chapter referred to as a designer certificate ) obtained from the Minister by an individual who works as a qualified designer for the corporation or the partnership of which the corporation is a member; and
(3) the certificate of qualification as a qualified patternmaker (in this chapter referred to as a patternmaker certificate ) obtained from the Minister by an individual who works as a qualified patternmaker for the corporation or the partnership of which the corporation is a member.
DIVISION II
ACTIVITY CERTIFICATE
8.3. An activity certificate issued to a corporation or a partnership for a taxation year or a fiscal period, as applicable, certifies that a design activity relating to a business carried on by the corporation or partnership in Québec was carried out in the year or the fiscal period by the corporation or partnership or, on its behalf, by a qualified outside consultant.
8.4. An activity certificate may be issued only for the design of industrially manufactured goods.
8.5. The design of industrially manufactured goods comprises all the creative activities stemming from a systematic and documented approach that consists in determining the formal, functional and symbolic properties of industrially manufactured goods.
It includes pattern drawing activities.
However, it does not include
(1) software or website design;
(2) the design of a good according to characteristics that meet the specific needs of an individual who does not carry on a business and who has ordered such a good;
(3) layout design that consists in combining or adapting previously designed products to integrate them into a specific environment or site; or
(4) subject to the fourth paragraph, graphic design whose objective is to create visual communication objects, whether graphic artwork consisting in a written, figurative or symbolic representation of objects, facts or ideas, graphic artwork applied or printed on product packaging, or on publishing products such as books, publications or promotional documents, or graphic artwork pertaining to signage, business logos, advertising, identification codes, safety warnings, written user or operating instructions and legally required notices such as the place of manufacture.
The graphic design leading to the printing or application of graphic artwork directly on an industrially manufactured good is an industrially manufactured goods design activity to the extent that such graphic artwork enhances the good either aesthetically or in terms of its functionality. Such graphic artwork must be created by a designer, who may make different versions of it. However, it must not be a modification or an adaptation of existing graphic artwork or of an existing motif.
8.6. Pattern drawing consists in designing patterns and producing geometric or technical drawings for the transformation of textiles, leather or fur. It includes the cutting of a pattern into parts for use in cutting the first sample. It also includes the construction of basic templates, the drafting of technical specifications and the grading and adjustment of a prototype.
DIVISION III
CONSULTANT CERTIFICATE
8.7. A consultant certificate certifies that the person or the partnership to whom it is issued is recognized as a qualified outside consultant.
8.8. A person or a partnership may be recognized as a qualified outside consultant if
(1) the person or partnership has an establishment in Québec; and
(2) the person or partnership carries on in Québec, on behalf of a corporation or a partnership, an industrially manufactured goods design activity that relates to a business carried on in Québec by that corporation or partnership.
DIVISION IV
DESIGNER CERTIFICATE
8.9. A designer certificate certifies that the individual to whom it is issued is recognized as a qualified designer.
8.10. To be recognized as a qualified designer, an individual must, in connection with the industrially manufactured goods design activities he or she carries on,
(1) hold a diploma in design issued by an educational institution that is recognized by the Minister of Education, Recreation and Sports or an equivalent diploma; or
(2) have skills that are satisfactory to the Minister.
DIVISION V
PATTERNMAKER CERTIFICATE
8.11. A patternmaker certificate certifies that the individual to whom it is issued is recognized as a qualified patternmaker.
8.12. To be recognized as a qualified patternmaker, an individual must, in connection with the industrially manufactured goods design activities carried on by the individual, have the technical skills necessary to carry out pattern drawing activities in order to give concrete form to the ideas of a designer, and
(1) hold a diploma of vocational studies issued by the Minister of Education, Recreation and Sports or an equivalent diploma; or
(2) have skills that are satisfactory to the Minister.
CHAPTER IX
SECTORAL PARAMETERS OF TAX CREDIT FOR CONSTRUCTION OR CONVERSION OF VESSELS AND TAX HOLIDAY ON CAPITAL IN RESPECT OF CONSTRUCTION OR CONVERSION OF VESSELS
DIVISION I
INTERPRETATION AND GENERAL
9.1. In this chapter, unless the context indicates otherwise,
construction work in respect of a vessel means all the work relating to the construction or reconstruction of the vessel that may give rise to a new certificate of registry in the Canadian Register of Vessels, established under section 43 of the Canada Shipping Act, 2001 (S.C. 2001, c. 26), including the assembly of the parts or modules of the vessel that are manufactured by a third party in a place other than that of the assembly, but excluding the manufacture of parts or modules of the vessel by a third party without final assembly;
conversion work in respect of a vessel means work that is major on a technical and quantitative level, that involves substantial changes to the superstructures, machinery or equipment, that alters the essential characteristics of the vessel and that meets at least two of the following requirements:
(1) the work requires the replacement or installation of structural elements whose total weight is greater than 15% of the vessel’s total weight before the beginning of the work;
(2) the cost of the work is greater than 20% of the vessel’s market value before the beginning of the work;
(3) the work substantially changes the vocation of the vessel;
tax credit for the construction or conversion of vessels means the fiscal measure provided for in Division II.6.5 of Chapter III.1 of Title III of Book IX of Part I of the Taxation Act, under which a corporation is deemed to have paid an amount to the Minister of Revenue on account of its tax payable under that Part for a taxation year;
tax holiday on capital in respect of vessels means the fiscal measure provided for in paragraphs b.2 and b.2.1 of section 1137 and sections 1130, 1137.1, 1137.1.1 and 1137.7 of the Taxation Act, under which a corporation may deduct an amount in computing its paid-up capital for a taxation year;
vessel includes a semi-submergible rig stabilized by submerging pontoons and by anchoring, as well as a floating plant if it is intended to remain floating and be registered as a vessel, but does not include a self-elevating platform.
9.2. A corporation must obtain a qualification certificate (in Division II referred to as a vessel qualification certificate ) from the Minister, in respect of each vessel for which the corporation intends to claim the tax credit for the construction or conversion of vessels. Such a qualification certificate is valid for a maximum period of three years. If the construction or conversion work in respect of the vessel is carried out under a subcontract, the corporation must also obtain a qualification certificate in respect of the subcontract (in Division II referred to as a subcontract qualification certificate ) from the Minister.
A corporation must obtain a qualification certificate (in Division III referred to as a vessel qualification certificate ) from the Minister, in respect of each vessel for which the corporation intends to claim the tax holiday on capital in respect of vessels. Such a qualification certificate is valid for a period that starts at the beginning of the period of construction or conversion of the vessel referred to in the qualification certificate and that ends at the end of the fourth year following the year in which the vessel is delivered. If the construction or conversion work in respect of the vessel is carried out under a subcontract, the corporation must also obtain a qualification certificate in respect of the subcontract (in Division III referred to as a subcontract qualification certificate ) from the Minister.
The corporation must file an application for a qualification certificate in respect of a vessel that is the subject of a construction or conversion project,
(1) in the case of a qualification certificate referred to in the first paragraph, after a preliminary agreement has been reached with the client in respect of the project, but before a firm contract has been entered into in that respect; or
(2) in the case of a qualification certificate referred to in the second paragraph, before the beginning of the construction or conversion work in respect of the vessel.
The application for a qualification certificate in respect of a subcontract under which the construction or conversion work in respect of a vessel is carried out must be filed by the corporation at the same time as the application for a qualification certificate in respect of the vessel concerned.
DIVISION II
QUALIFICATION CERTIFICATES RELATING TO TAX CREDIT FOR CONSTRUCTION OR CONVERSION OF VESSELS
9.3. A vessel qualification certificate issued to a corporation certifies that the vessel to be constructed or converted and referred to in the certificate is recognized as an eligible vessel and that it will be a prototype vessel or the first, second or third vessel of a series of vessels.
9.4. The Minister may issue a vessel qualification certificate to a corporation, in relation to a vessel to be constructed or converted, only if the corporation
(1) has an establishment in Québec that has direct access to a navigable body of water;
(2) has the tools, land, keep blocks, ramps, dry docks, and workshops under permanent shelter that are necessary for the construction or conversion of vessels in whole or in modules;
(3) shows that it has the capacity to launch the vessel;
(4) shows that it has the capacity to construct or convert a vessel and has constructed or converted a vessel or barge of more than 50 gross tonnage in the last five years for a client with whom it is dealing at arm’s length; and
(5) permanently has a number of employees working on a regular basis on naval construction, reconstruction or repair on a hauling ramp or in a dry dock.
9.5. A vessel may be recognized as an eligible vessel if
(1) its gross tonnage is at least 50 tons;
(2) it is intended to be used for the transportation of goods or passengers or for the provision of a specialized service;
(3) it is undergoing construction or conversion work in Québec; and
(4) it may be certified for navigation by Transport Canada.
9.6. A vessel is a prototype vessel if
(1) it is undergoing construction or conversion work that is not of the same nature as work done previously by the corporation;
(2) the construction or conversion work in respect of the vessel requires an investment in innovation, in planning and in the production methods and processes, or the vessel is technologically advanced and ecological; and
(3) it is the first vessel of a series whose repeat business potential is established, in particular by commitments to order, letters of intent of clients already operating maritime services or a market study showing the construction potential for a series of vessels, and whose entry into service will allow the development of a market not occupied by Québec businesses.
A vessel is the first, second or third vessel of a series if it is constructed or converted in that order after a benchmark prototype vessel and according to the plans and specifications for the construction or conversion of that prototype vessel.
For the purposes of the second paragraph, a prototype vessel is a vessel in respect of which the corporation holds a valid vessel qualification certificate certifying that the vessel is a prototype vessel.
9.7. A subcontract qualification certificate issued to a corporation certifies that the work to be carried out under the subcontract referred to in the certificate requires the use of labour in Québec that represents more than 50% of the cost of the subcontract, and that the work is construction or conversion work in respect of a vessel for which the corporation has obtained a vessel qualification certificate.
DIVISION III
QUALIFICATION CERTIFICATES RELATING TO TAX HOLIDAY ON CAPITAL IN RESPECT OF VESSELS
9.8. A vessel qualification certificate issued to a corporation certifies that the vessel to be constructed or converted and referred to in the certificate is recognized as an eligible vessel.
9.9. A vessel may be recognized as an eligible vessel if it meets the conditions of section 9.5.
9.10. A subcontract qualification certificate issued to a corporation certifies that the subcontract referred to in the certificate entrusts a person or partnership operating a naval shipyard in Québec with the carrying out in Québec of construction or conversion work in respect of a vessel for which the corporation obtained a vessel qualification certificate.
CHAPTER X
SECTORAL PARAMETERS OF TAX HOLIDAY FOR CORPORATION DEDICATED TO COMMERCIALIZATION OF INTELLECTUAL PROPERTY
DIVISION I
INTERPRETATION AND GENERAL
10.1. In this chapter, unless the context indicates otherwise,
computer program has the meaning assigned by section 2 of the Copyright Act (R.S.C. 1985, c. C-42);
eligible institute means a person or entity that is an eligible public research centre or an eligible university entity for the purposes of Division II.1 of Chapter III.1 of Title III of Book IX of Part I of the Taxation Act;
issuance period of a corporation means the period beginning at the time identified by the corporation as the time when it began to operate the business referred to in the first paragraph of section 10.3, and ending on the last day of the 10-year period beginning on the date of its incorporation;
tax holiday for a corporation dedicated to the commercialization of intellectual property means the fiscal measure provided for in sections 771, 771.1, 771.1.1, 771.8.5.1, 771.14 and 771.15 of the Taxation Act, which allows a corporation to deduct an amount under subparagraph j.1 of subsection 1 of section 771 of that Act in computing its tax payable for a taxation year under Part I of that Act.
10.2. To benefit from the tax holiday for a corporation dedicated to the commercialization of intellectual property, a corporation must obtain from the Minister a certificate in respect of its business (in this chapter referred to as a business certificate ). An application for such a certificate must be filed for each period, not exceeding three years, for which the corporation intends to benefit from the tax holiday or would intend to do so if it had tax payable under Part I of the Taxation Act for a taxation year included in whole or in part in the period.
However, the Minister may deliver a business certificate for a particular period, other than the first, only if the following conditions are met in respect of the corporation applying for it:
(1) a business certificate was issued to the corporation for any preceding period included in its issuance period; and
(2) at the time the business certificate is to be issued for the particular period, no certificate referred to in subparagraph 1 has been revoked.
If, at a particular time, the Minister revokes a business certificate issued to the corporation for a given period, any business certificate issued to the corporation for a particular period subsequent to the given period is deemed to be revoked by Investissement Québec at that time. In such a case, the effective date of the deemed revocation is the date of coming into force of the certificate that is deemed to be revoked.
DIVISION II
BUSINESS CERTIFICATE
10.3. A business certificate issued to a corporation certifies that the business that the corporation declares it is carrying on is recognized as an eligible commercialization business for the period specified in the certificate.
In the case of the first business certificate, its date of coming into force is the date identified by the corporation as the date on which it began to carry on the business concerned.
The period for which the Minister issues a business certificate may not exceed three years and must be within the corporation’s issuance period.
10.4. A business may be recognized as an eligible commercialization business if the Minister is of the opinion that its sole purpose is
(1) the manufacturing and selling of goods more than 50% of whose value is derived from an eligible intellectual property;
(2) the manufacturing and selling of goods of which an essential component is an eligible intellectual property; or
(3) the licensing of computer programs each of which is an eligible intellectual property.
10.5. A property is considered to be an eligible intellectual property if
(1) the property was developed by one or more individuals each of whom is either an inventor for the purposes of the Patent Act (R.S.C. 1985, c. P-4) or an author for the purposes of the Copyright Act, in the course of employment with or academic study at an eligible institute, and its development did not result from a research contract carried out on behalf of a person or entity other than the institute;
(2) no person or partnership owned the property, in any manner whatever, other than
(a) the eligible institute where the research work for its development took place,
(b) an individual referred to in paragraph 1,
(c) the corporation referred to in the first paragraph of section 10.2, or
(d) a subsidiary of an eligible institute, or an entity controlled by such an institute, that is recognized by the Minister;
(3) where the eligible institute referred to in subparagraph a of paragraph 2 has an official policy on disclosure of intellectual property, the property was disclosed to the institute in a timely manner and within the deadline required in accordance with the policy; and
(4) the property is a property in respect of which a patent has been issued under the Patent Act, a property in respect of which an application for a patent was filed under that Act by a person or entity referred to in any of subparagraphs a to d of paragraph 2, provided the patent may reasonably be expected to be issued in accordance with the application no later than the last day of the issuance period of the corporation referred to in the first paragraph of section 10.2, or a copyrighted computer program which the Minister considers to be a significant technological advance at the time it is completed.
2012, c. 1, Schedule C.
MINISTER OF EDUCATION, RECREATION AND SPORTS
CHAPTER I
MEASURES COVERED BY THIS SCHEDULE
1.1. The Minister of Education, Recreation and Sports administers the sectoral parameters of the following fiscal measures:
(1) the deduction in respect of a foreign researcher on a postdoctoral internship provided for in sections 737.22.0.0.1 to 737.22.0.0.4 of the Taxation Act (chapter I-3); and
(2) the deduction in respect of foreign professors provided for in sections 737.22.0.5 to 737.22.0.8 of the Taxation Act.
CHAPTER II
SECTORAL PARAMETERS OF DEDUCTION IN RESPECT OF FOREIGN RESEARCHERS ON POSTDOCTORAL INTERNSHIP
DIVISION I
INTERPRETATION AND GENERAL
2.1. In this chapter, unless the context indicates otherwise,
eligible employer means an eligible public research centre or an eligible university entity;
eligible public research centre means a centre or body that is an eligible public research centre for the purposes of Division II.1 of Chapter III.1 of Title III of Book IX of Part I of the Taxation Act;
eligible university entity means an entity that is an eligible university entity for the purposes of Division II.1 of Chapter III.1 of Title III of Book IX of Part I of the Taxation Act;
tax holiday for a foreign researcher on a postdoctoral internship means the fiscal measure provided for in Title VII.3.0.1 of Book IV of Part I of the Taxation Act, under which an individual may deduct an amount in computing his or her taxable income for a taxation year.
2.2. In order for an individual who works for an eligible employer to benefit from the tax holiday for a foreign researcher on a postdoctoral internship for a taxation year, the eligible employer must obtain a certificate in respect of the individual (in this chapter referred to as a researcher certificate ) from the Minister. The certificate must be obtained for each taxation year for which the individual may claim the tax holiday.
The employer must file the application for the certificate before 1 March of the calendar year that follows the individual’s taxation year concerned.
DIVISION II
RESEARCHER CERTIFICATE
2.3. A researcher certificate issued to an eligible employer certifies that the individual referred to in the certificate is recognized as a researcher on a postdoctoral internship in respect of the employer for the taxation year for which the application for the certificate was made or for the part of the year specified in it.
2.4. An individual may be recognized as a researcher on a postdoctoral internship in respect of an eligible employer if
(1) the individual is specialized in the field of pure or applied science or a related field;
(2) the individual holds, subject to the second paragraph, a doctoral degree in one of the fields referred to in subparagraph 1 or another degree that, in the Minister’s opinion, is equivalent;
(3) the individual is serving a full-time postdoctoral internship as a researcher with the employer for a set term; and
(4) the individual’s duties with the employer are performed exclusively or almost exclusively, on a continuous basis, as a researcher within the scope of the postdoctoral internship.
For the condition of subparagraph 2 of the first paragraph to be met, not more than five years may have elapsed, at the time the individual begins a full-time postdoctoral internship with the eligible employer for the first time, since the individual obtained the diploma referred to in that subparagraph. However, if, before beginning that first internship, the individual temporarily interrupted his or her research activities for reasons the Minister considers reasonable, the time elapsed may be longer, but must not exceed 10 years.
2.5. If an individual is temporarily absent from work for reasons the Minister considers reasonable, the Minister may, for the purpose of determining whether the individual meets the conditions for recognition as a researcher on a postdoctoral internship in respect of an eligible employer, consider that the individual continued to perform his or her duties throughout the period of absence exactly as he or she was performing them immediately before the beginning of that period.
2.6. An eligible employer to which a researcher certificate is issued for a taxation year must promptly send a copy of the certificate to the individual concerned so that it may be attached to his or her fiscal return for the year.
CHAPTER III
SECTORAL PARAMETERS OF DEDUCTION IN RESPECT OF FOREIGN PROFESSORS
DIVISION I
INTERPRETATION AND GENERAL
3.1. In this chapter, unless the context indicates otherwise,
eligible employer means a Québec university;
foreign professor tax holiday means the fiscal measure provided for in Title VII.3.2 of Book IV of Part I of the Taxation Act, under which an individual may deduct an amount in computing the individual’s taxable income for a taxation year.
3.2. In order for an individual who works for an eligible employer to benefit from the foreign professor tax holiday for a taxation year, the eligible employer must obtain a certificate in respect of the individual (in this chapter referred to as a professor certificate ) from the Minister. The certificate must be obtained for each taxation year for which the individual may claim the tax holiday.
The employer must file the application for the certificate before 1 March of the calendar year that follows the individual’s taxation year concerned.
DIVISION II
PROFESSOR CERTIFICATE
3.3. A professor certificate issued to an eligible employer certifies that the individual referred to in the certificate is recognized as a professor in respect of the employer for the taxation year for which the application for the certificate was made or for the part of the year specified in it.
3.4. An individual may be recognized as a professor in respect of an eligible employer if
(1) the individual holds a position as a professor with the employer;
(2) the individual is specialized in the field of science and engineering, finance, health or new information and communication technologies;
(3) the individual holds a doctoral degree in one of the fields referred to in paragraph 2 or another degree that, in the Minister’s opinion, is equivalent; and
(4) the individual’s duties with the employer are performed exclusively or almost exclusively, on a continuous basis, as a professor in one of the fields referred to in paragraph 2.
3.5. If an individual is temporarily absent from work for reasons the Minister considers reasonable, the Minister may, for the purpose of determining whether the individual meets the conditions for recognition as a professor in respect of an eligible employer, consider that the individual continued to perform the his or her duties throughout the period of absence exactly as he or she was performing them immediately before the beginning of that period.
3.6. An eligible employer to which a professor certificate is issued for a taxation year must promptly send a copy of the certificate to the individual concerned so that it may be attached to his or her fiscal return for the year.
2012, c. 1, Schedule D.
MINISTER OF FINANCE
CHAPTER I
MEASURES COVERED BY THIS SCHEDULE
1.1. The Minister of Finance administers the sectoral parameters of the following fiscal measures:
(1) the tax credit for international financial centres provided for in sections 1029.8.36.166.61 to 1029.8.36.166.64 of the Taxation Act (chapter I-3);
(2) the deduction relating to foreign specialists assigned to the operations of an international financial centre provided for in sections 65 to 70 of the Act respecting international financial centres (chapter C-8.3) and sections 737.16 and 737.18 of the Taxation Act;
(3) the tax holidays relating to the carrying out of a major investment project provided for in sections 737.18.14 to 737.18.17, 771.2.5, 1130, 1138.2.2, 1141.8, 1166, 1170.1 to 1170.4, 1175.1 and 1175.4.1 to 1175.4.4 of the Taxation Act, sections 94.0.3.1 to 94.0.3.4 of the Tax Administration Act (chapter A-6.002) and sections 33 and 34 of the Act respecting the Régie de l’assurance maladie du Québec (chapter R-5); and
(4) the deduction relating to foreign specialists in the service of a corporation that operates a stock exchange or a securities clearing-house provided for in sections 737.18.29 to 737.18.30.3, 737.18.34 and 737.18.35 of the Taxation Act.
CHAPTER II
SECTORAL PARAMETERS OF TAX CREDIT FOR INTERNATIONAL FINANCIAL CENTRES
DIVISION I
INTERPRETATION AND GENERAL
2.1. In this chapter, unless the context indicates otherwise,
international financial centre means a business described in section 6 of the Act respecting international financial centres;
international financial transaction has the meaning assigned by section 4 of the Act respecting international financial centres;
qualified international financial transaction has the meaning assigned by sections 7 to 8 of the Act respecting international financial centres;
specialized worker of a corporation for a particular period means an individual who, in any of the individual’s taxation years during which the individual works for a corporation, is recognized as a specialist for a particular period of that taxation year, according to a certificate referred to in subparagraph 2 of the first paragraph of section 3.2 that was issued to the corporation;
tax credit for international financial centres means the fiscal measure provided for in Division II.6.14.3 of Chapter III.1 of Title III of Book IX of Part I of the Taxation Act, under which a corporation is deemed to have paid an amount to the Minister of Revenue on account of its tax payable under that Part for a taxation year;
urban agglomeration of Montréal has the meaning assigned by section 4 of the Act respecting international financial centres.
2.2. A corporation that intends to operate an international financial centre within the urban agglomeration of Montréal and that wishes to benefit from the tax credit for international financial centres must obtain from the Minister
(1) a qualification certificate in respect of that business (in this chapter referred to as a corporation qualification certificate ); and
(2) a qualification certificate in respect of each of the individuals for which it wishes to benefit from the tax credit (in this chapter referred to as an employee qualification certificate ).
Moreover, to benefit from the tax credit, such a corporation must also obtain from the Minister
(1) a certificate in respect of that business (in this chapter referred to as a business certificate ); and
(2) a certificate in respect of each of the individuals for which it claims the tax credit (in this chapter referred to as an employee certificate ).
The certificates referred to in the second paragraph must be obtained for each taxation year for which the corporation intends to claim the tax credit for international financial centres.
DIVISION II
BUSINESS-RELATED DOCUMENTS
2.3. A business qualification certificate issued to a corporation certifies, subject to the Act respecting international financial centres, that the business referred to in the certificate is recognized as an international financial centre. It also specifies the categories of qualified international financial transactions engaged in or to be engaged in in the course of carrying on the business.
2.4. The Minister issues a business qualification certificate to a corporation if the Minister is of the opinion that the activities engaged in or to be engaged in by the corporation in the course of carrying on its business are in compliance with the provisions and objectives of the Act respecting international financial centres.
2.5. A business certificate issued to a corporation certifies that the business that is referred to in the certificate and that is carried on by the corporation in the taxation year for which the application for the certificate is filed is recognized for that year, or for the part of that year that is specified in the certificate, as an international financial centre.
2.6. The Minister may issue a business certificate to a corporation if, for all or part of the taxation year for which the application for the certificate is filed,
(1) the business qualification certificate issued in respect of the business was valid; and
(2) the Minister is of the opinion that
(a) the activities of the business were related to qualified international financial transactions, and
(b) those activities required, at all times, the work of at least six individuals each of whom is recognized by the Minister as an eligible employee of the corporation, for all or part of the year or part of year, under an employee certificate the corporation obtained in respect of the employee for the year.
Where an individual is a specialized worker of the corporation for a particular period that begins or ends in a taxation year of the corporation, the following presumptions must be taken into account for the purposes of subparagraph b of subparagraph 2 of the first paragraph:
(1) the individual is deemed to have been recognized by the Minister as an eligible employee of the corporation for the part of the taxation year that is included in the particular period; and
(2) the corporation is deemed to have obtained an employee certificate in respect of the individual for the taxation year, under which the individual is so recognized.
2.7. If the condition of subparagraph b of subparagraph 2 of the first paragraph of section 2.6 is not met for a particular period of a taxation year for which a business qualification certificate issued to a corporation is valid, the Minister may nevertheless recognize the business for the particular period provided the corporation shows, to the Minister’s satisfaction, that the situation is temporary and due to exceptional circumstances that are beyond its control.
DIVISION III
DOCUMENTS RELATING TO EMPLOYEES
2.8. An employee qualification certificate issued to a corporation certifies that the individual referred to in the certificate is recognized by the Minister as an eligible employee of the corporation.
2.9. In order for the Minister to recognize an individual as an eligible employee of a corporation, the Minister must be of the opinion that it may reasonably be expected that, from the date specified in the certificate, the individual will be working full-time for the corporation, that is, at least 26 hours per week, for an expected minimum period of 40 weeks, and that his or her duties with the corporation will be devoted, in a proportion of at least 75%, to carrying out qualified international financial transactions as part of the operations of a business of the corporation that constitutes or is to constitute an international financial centre.
2.10. An employee certificate issued to a corporation certifies that the individual referred to in the certificate is recognized by the Minister as an eligible employee of the corporation for the taxation year for which the application for the certificate was made or for the part of that taxation year that is specified in the application.
2.11. The Minister recognizes an individual as an eligible employee of the corporation if
(1) the employee qualification certificate that was issued to the corporation in respect of the individual is valid;
(2) the individual is working full-time for the corporation, that is, at least 26 hours per week, for an expected minimum period of 40 weeks; and
(3) the individual’s duties with the corporation were devoted, in a proportion of at least 75%, to carrying out qualified international financial transactions as part of the operations of a business of the corporation in respect of which a business qualification certificate was valid.
2.12. The duties of an individual with a corporation that are devoted to carrying out a qualified international financial transaction mean the duties that are directly attributable to the transactional process that is specific to the transaction.
However, unless they constitute in themselves a qualified international financial transaction, the individual’s duties that relate to legal affairs, communications, accounting, finance, taxation, corporate management, human and physical resources management, electronic data processing, marketing, messenger services, reception work or secretarial work do not constitute duties that are directly attributable to the transactional process that is specific to a qualified international financial transaction.
2.13. If an individual is temporarily absent from work for reasons the Minister considers reasonable, the Minister may, for the purpose of determining whether the individual meets the conditions for recognition as an eligible employee of a corporation, consider that the individual continued to perform his or her duties throughout the period of absence exactly as he or she was performing them before the beginning of that period.
DIVISION IV
SPECIAL RULES
2.14. The Minister is justified in revoking a business qualification certificate issued under this chapter or a similar qualification certificate issued under the Act respecting international financial centres if the Minister is of the opinion that the activities engaged in, in the course of the business referred to in the certificate, by the corporation or the partnership that obtained it are no longer in compliance with the provisions or the objectives of that Act, whether or not the corporation or partnership contravened the provisions of that Act or of this Act.
2.15. The effective date of the revocation of a qualification certificate or certificate issued under this chapter, or of a similar document issued under the Act respecting international financial centres, may not precede the date of the notice of revocation by more than four years.
2.16. The Minister may, before issuing a qualification certificate or a certificate under this chapter or before amending or revoking such a document or a similar document issued under the Act respecting international financial centres, obtain the advice of CFI Montréal — Centre Financier International or of any other body pursuing similar objectives.
CHAPTER III
SECTORAL PARAMETERS OF DEDUCTION RELATING TO FOREIGN SPECIALISTS ASSIGNED TO OPERATIONS OF INTERNATIONAL FINANCIAL CENTRE
DIVISION I
INTERPRETATION AND GENERAL
3.1. In this chapter, unless the context indicates otherwise,
back-office activities has the meaning assigned by section 4 of the Act respecting international financial centres;
business certificate means a certificate referred to in subparagraph 1 of the second paragraph of section 2.2 or section 12 of the Act respecting international financial centres;
business qualification certificate means a qualification certificate referred to in subparagraph 1 of the first paragraph of section 2.2 or section 10 of the Act respecting international financial centres;
eligible employer means a corporation or a partnership operating a business that is recognized as an international financial centre, according to the following documents that were issued in its respect:
(1) the business qualification certificate; and
(2) the business certificate for the taxation year of the corporation or for the fiscal period of the partnership for which this definition is applied;
foreign specialist tax holiday means the fiscal measure provided for in subdivision 1 of Division III of Chapter V of the Act respecting international financial centres and in sections 737.16 and 737.18 of the Taxation Act, under which an individual may deduct an amount in computing the individual’s taxable income for a taxation year;
international financial centre means a business described in section 6 of the Act respecting international financial centres;
international financial transaction has the meaning assigned by section 4 of the Act respecting international financial centres;
strategic personnel has the meaning assigned by section 4 of the Act respecting international financial centres.
For the purposes of the definition of eligible employer in the first paragraph, the following presumptions apply to a corporation or a partnership in respect of the qualification certificate or the certificate issued to it and referred to in that definition:
(1) if the qualification certificate is revoked retroactively,
(a) it is deemed to be valid until the date of issue of the notice of revocation, and
(b) the corporation or partnership is deemed to hold, in respect of the business to which the qualification certificate relates, for the taxation year or the fiscal period in which it was revoked, a valid business certificate for the period corresponding to the part of that year or of that fiscal period that ends on that date of issue; and
(2) a revoked certificate is deemed to be valid for the whole taxation year or for the whole fiscal period for which it had been issued.
3.2. In order for an individual who works for an eligible employer to benefit from the foreign specialist tax holiday, the eligible employer must obtain the following documents from the Minister:
(1) a qualification certificate in respect of the individual (in this chapter referred to as a specialist qualification certificate ); and
(2) a certificate in respect of the individual (in this chapter referred to as a specialist certificate ).
A certificate referred to in this section must be obtained for each taxation year for which the eligible employer wishes an individual who is working for it to be allowed to claim the foreign specialist tax holiday.
The employer must file an application for a certificate before 1 March of the calendar year that follows the individual’s taxation year concerned.
However, the Minister may, if the Minister considers that the circumstances so warrant, allow such an application to be filed after the expiry of that time limit.
DIVISION II
DOCUMENTS RELATING TO SPECIALISTS
3.3. A specialist qualification certificate issued to an eligible employer certifies that the individual referred to in the certificate is recognized by the Minister as a specialist in respect of the eligible employer. The Minister specifies the period of validity of the certificate in the certificate, which period may not exceed five years.
3.4. In order for the Minister to recognize an individual as a specialist in respect of an eligible employer, the Minister must be of the opinion that the individual is a specialist in the field of international financial transactions and that it may reasonably be expected that
(1) from the date on which the individual takes up employment with the employer to the end of the period of validity specified in the qualification certificate,
(a) the individual’s duties with the employer will be devoted, in a proportion of at least 75%, to the operations of a business of the employer that constitutes or is to constitute an international financial centre, other than back office activities, or
(b) the individual will be a member of the strategic personnel of the business described in subparagraph a and the individual’s duties with the employer will be devoted, in a proportion of at least 75%, to the operations of that business; and
(2) in the case of an individual who has become or is to become resident in Canada to establish an international financial centre of the employer in Canada,
(a) the individual’s duties with the person or partnership for which the individual will be working during the period of establishment of the international financial centre will be devoted, during that period, in a proportion of at least 75%, to the establishment of the international financial centre,
(b) the individual will take up employment with the employer within 12 months after the day on which the individual becomes resident in Canada to establish the international financial centre of the employer, and
(c) from the date on which the individual takes up employment with the employer to the end of the period of validity specified in the qualification certificate,
i. the individual’s duties with the employer will be devoted, in a proportion of at least 75%, to the operations of the business of the employer that is to constitute an international financial centre, other than back office activities, or
ii. the individual will be a member of the strategic personnel of the business described in subparagraph i and the individual’s duties with the employer will be devoted, in a proportion of at least 75%, to the operations of that business.
3.5. A specialist certificate issued to an eligible employer certifies that the individual referred to in the certificate is recognized by the Minister as a specialist in respect of the eligible employer for the taxation year for which the application for the certificate is made or for the part of the year specified in it.
3.6. The Minister recognizes an individual as a specialist in respect of an eligible employer for all or a part of the individual’s taxation year for which an application for a certificate was filed with the Minister if
(1) the specialist qualification certificate, or the qualification certificate referred to in section 14 of the Act respecting international financial centres, issued to the employer in respect of the individual is valid in respect of the year or part of year; and
(2) throughout the year or part of year,
(a) the individual’s duties with the person or partnership referred to in subparagraph a of subparagraph 2 of the first paragraph of section 66 of the Act respecting international financial centres were devoted, in a proportion of at least 75%, to the establishment of the business which is to constitute an international financial centre of the employer,
(b) the individual’s duties with the employer were devoted, in a proportion of at least 75%, to the operations, other than back office activities, of a business of the employer in respect of which a business qualification certificate issued to the employer was valid, or
(c) the individual’s duties with the employer were devoted, in a proportion of at least 75%, to the operations of the business described in subparagraph b and the individual was a member of the strategic personnel of that business.
3.7. If an individual is temporarily absent from work for reasons the Minister considers reasonable, the Minister may, for the purpose of determining whether the individual meets the conditions for recognition as a specialist in respect of an eligible employer, consider that the individual continued to perform his or her duties throughout the period of absence exactly as he or she was performing them before the beginning of that period.
3.8. An eligible employer to which a specialist certificate is issued for a taxation year under this chapter must promptly send a copy of the certificate to the individual concerned so that it may be attached to his or her fiscal return for the year.
DIVISION III
SPECIAL RULES
3.9. The effective date of the revocation of a qualification certificate that is a specialist qualification certificate or a qualification certificate issued under section 14 or 15 of the Act respecting international financial centres may not precede the date of the notice of revocation by more than four years. The same applies in the case of the revocation of a certificate that is a specialist certificate or a certificate issued under section 19 or 20 of that Act.
3.10. The Minister may, before issuing a qualification certificate or a specialist certificate, or before revoking such a document or a document issued under any of sections 14, 15, 19 and 20 of the Act respecting international financial centres, obtain the advice of CFI Montréal — Centre Financier International or of any other body pursuing similar objectives.
CHAPTER IV
SECTORAL PARAMETERS OF FISCAL MEASURES RELATING TO CARRYING OUT OF A MAJOR INVESTMENT PROJECT
DIVISION I
INTERPRETATION AND GENERAL
4.1. In this chapter, unless the context indicates otherwise,
tax-free period of a corporation or a partnership, in relation to an investment project, means the 10-year period that begins on the date specified for that purpose by the Minister in the first certificate referred to in the second paragraph of section 4.3 that is issued to the corporation or partnership in respect of the project;
fiscal measure relating to the carrying out of a major investment project means any of the following fiscal measures from which a corporation holding a certificate referred to in the first paragraph of section 4.3, a corporation that is a member of a partnership holding such a certificate or, if the measure is the measure described in paragraph 5 or 8, any other person who is a member of such a partnership, may benefit:
(1) the fiscal measure provided for in Title VII.2.3 of Book IV of Part I of the Taxation Act and in section 771.2.5 of that Act, under which the corporation may deduct an amount in computing its taxable income for a taxation year;
(2) the fiscal measure provided for in sections 1130, 1138.2.2 and 1141.8 of the Taxation Act, under which the corporation may deduct an amount in computing its paid-up capital for a taxation year;
(3) the fiscal measure provided for in sections 1166 and 1170.1 to 1170.4 of the Taxation Act, under which the corporation may, if it is an insurance corporation within the meaning of the first paragraph of that section 1166, deduct an amount in computing its tax payable under Part VI of that Act for a taxation year;
(4) the fiscal measure provided for in sections 1175.1 and 1175.4.1 to 1175.4.4 of the Taxation Act, under which the corporation may, if it is a life insurer within the meaning of section 1 of that Act, deduct an amount in computing its tax payable under Part VI.1 of that Act for a taxation year;
(5) the fiscal measure provided for in sections 33 and 34 of the Act respecting the Régie de l’assurance maladie du Québec, which allows the corporation or the other person to obtain a contribution exemption under subparagraph d of the seventh paragraph of that section 34;
(6) the fiscal measure provided for in sections 94.0.3.1, 94.0.3.2 and 94.0.3.4 of the Tax Administration Act, which allows the corporation to obtain from the Minister of Revenue the payment of an amount determined in accordance with subparagraph a of the first paragraph of section 94.0.3.2 of that Act as a refund of all or part of the tax that it paid under Part I of the Taxation Act for a taxation year;
(7) the fiscal measure provided for in sections 94.0.3.1, 94.0.3.2 and 94.0.3.4 of the Tax Administration Act, which allows the corporation to obtain from the Minister of Revenue the payment of an amount determined in accordance with subparagraph b of the first paragraph of section 94.0.3.2 of that Act as a refund of all or part of the capital tax that it paid under Part IV, VI or VI.1 of the Taxation Act for a taxation year;
(8) the fiscal measure provided for in sections 94.0.3.1 to 94.0.3.4 of the Tax Administration Act, which allows the corporation to obtain from the Minister of Revenue the payment of an amount determined in accordance with subparagraph c of the first paragraph of section 94.0.3.2 of that Act or in accordance with the first paragraph of section 94.0.3.3 of that Act as a refund of the contributions paid under section 34 of the Act respecting the Régie de l’assurance maladie du Québec, or allows the other person to obtain from that Minister the payment of an amount determined in accordance with the first paragraph of that section 94.0.3.3 as a refund of such contributions;
international resort means a complex or group of lodging units that features recreational facilities or developed natural attractions and whose existence and prosperity depend on international tourism;
start-up period of an investment project means the period that begins on the date referred to in the second paragraph and that ends at the end of the calendar year that includes
(1) the 36th month after that date, if the investment project is referred to in subparagraph a of subparagraph 3 of the first paragraph of section 4.7; or
(2) the 48th month after that date, if the investment project is referred to in subparagraph b or c of that subparagraph 3;
wages means a salary or wages for the purposes of Part I of the Taxation Act.
The date referred to in the definition of start-up period in the first paragraph is the date of the beginning of the tax-free period relating to the investment project that is specified by the Minister in the first certificate referred to in the second paragraph of section 4.3 that was issued to the corporation or partnership in respect of the project or that would have been so specified if a first certificate of the kind had been issued to the corporation or partnership.
4.2. For the purposes of this Act and despite sections 1175.27, 1175.28.15 and 1175.28.17 of the Taxation Act and section 94.0.3.3 of the Tax Administration Act, every person who is a member of a partnership that holds the certificate referred to in the first paragraph of section 4.3 is considered to be the person benefiting from or availing himself, herself or itself of the fiscal measure described in paragraph 5 or 8 of the definition of fiscal measure relating to the carrying out of a major investment project in the first paragraph of section 4.1, according to the agreed proportion in respect of the person for the fiscal period of the partnership that ends in the person’s taxation year for which the measure applies.
4.3. To benefit from a fiscal measure relating to the carrying out of a major investment project, in respect of an investment project, a corporation or, if it avails itself of the measure as a member of a partnership, the partnership must hold a certificate in respect of the project (in this chapter referred to as an initial certificate ).
In addition, the corporation or partnership must, for that purpose, obtain a certificate in respect of the investment project (in this chapter referred to as an annual certificate ) from the Minister for each calendar year that is
(1) a calendar year at least part of which is included both in the corporation’s tax-free period in relation to the project and in a taxation year for which the corporation intends to benefit, in respect of the project, from a fiscal measure relating to the carrying out of a major investment project; or
(2) a calendar year at least part of which is included both in the partnership’s tax-free period in relation to the project and in a fiscal period of the partnership that ends in a taxation year of the corporation for which the corporation intends to benefit, in respect of the project, from a fiscal measure relating to the carrying out of a major investment project.
The certificates referred to in the first and second paragraphs, obtained by a partnership, are also required in order for a person, other than a corporation, who is a member of the partnership to avail himself, herself or itself of the fiscal measure referred to in paragraph 5 or 8 of the definition of fiscal measure relating to the carrying out of a major investment project in the first paragraph of section 4.1.
Subject to subparagraph 4 of the first paragraph of section 4.4, the Minister may not issue an initial certificate in respect of an investment project unless the application for such a certificate was filed with the Minister in writing before 12 June 2003.
Similarly, the Minister may not issue an annual certificate to a corporation or a partnership in respect of an investment project for a particular calendar year unless, at the time the annual certificate is to be issued, the initial certificate that the corporation or partnership holds in respect of the project is still valid.
If, at a particular time, the Minister revokes the initial certificate issued to a corporation or a partnership in respect of an investment project, any annual certificate issued to the corporation or partnership in respect of the project for a calendar year subsequent to the year that includes the effective date of the revocation is deemed to be revoked by the Minister at that time. In such a case, the effective date of the deemed revocation is the date of coming into force of the certificate that is deemed to be revoked. The annual certificate issued in respect of the project for the calendar year that includes the effective date of the revocation of the initial certificate is also deemed to be revoked by the Minister at that time, except that the effective date of the deemed revocation is the effective date of the revocation of the initial certificate.
4.4. If, at any given time in a particular calendar year, a corporation or a partnership acquires from another corporation or partnership (in this section referred to as the transferee and the transferor , respectively) all or substantially all of the part that is carried on in Québec of the business within which activities arising out of the carrying out of the investment project in respect of which the transferor holds a valid initial certificate are carried on and, for the purposes of this chapter, the Minister agrees to the transfer of the carrying out of the investment project to the transferee, the following rules apply:
(1) the initial certificate issued to the transferor is deemed to be revoked from that time;
(2) the annual certificate issued to the transferor in respect of the project for the particular year or for a subsequent calendar year is also deemed to be revoked from that time or, if it is later, its date of coming into force;
(3) the first annual certificate issued or deemed, because of the application of this subparagraph, to have been issued to the transferor in respect of the project is, for the purposes of the definition of tax-free period in section 4.1 and of the second paragraph of each of sections 4.1 and 4.16, deemed to have been issued to the transferee; and
(4) the Minister must issue an initial certificate to the transferee in respect of the project, which comes into force at that time.
The first paragraph is deemed to have applied, before 1 January 2011, in relation to the acquisition by a transferee, before that date, of all or substantially all of the part that is carried on in Québec of the business within which activities arising out of the carrying out of the investment project in respect of which an initial certificate was issued to a transferor are carried on if, for the purposes of the fiscal measure relating to the carrying out of a major investment project, the Minister had agreed to the transfer of the carrying out of the investment project to the transferee.
The Minister may agree to the transfer of the carrying out of the investment project to the transferee if the transferee undertakes to continue in Québec the carrying out of all or substantially all of the project as submitted to and approved by the Minister at the time of the transfer.
If the Minister issued a particular initial certificate to a transferee under subparagraph 4 of the first paragraph in relation to the acquisition (in this paragraph referred to as the particular acquisition ) by the transferee, at a given time, of all or substantially all of the part that is carried on in Québec of the particular business within which activities arising out of the carrying out of the investment project in respect of which that certificate was issued are carried on and if, at a time subsequent to the given time, the Minister revokes or is deemed, because of the application of this paragraph, to have revoked the initial certificate that was issued to the transferor involved in the particular acquisition, in respect of the project, the particular certificate that was issued to the transferee under that subparagraph is also deemed to have been revoked by the Minister at that subsequent time. The effective date of the deemed revocation is the date of coming into force of the particular certificate.
Lastly, if, at a time subsequent to the given time, a first annual certificate is issued in respect of an investment project, the certificate is, for the purposes of sections 94.0.3.2 and 94.0.3.3 of the Tax Administration Act, deemed to have also been issued to a transferor to which the first paragraph applied before that subsequent time in relation to the project. The Minister must, in such a case, send a copy of the certificate to the transferor.
4.5. Despite paragraph 5 of section 5 of this Act, a corporation or a partnership is associated with another person or partnership in a calendar year if it would be so considered under that paragraph 5 provided
(1) the rules of subparagraphs a to c of the second paragraph of section 737.18.20 of the Taxation Act applied to that paragraph 5, with the necessary modifications; and
(2) taxation year was replaced, wherever it appears in that paragraph 5 and in the relevant provisions of the Taxation Act, by calendar year .
DIVISION II
INITIAL CERTIFICATE
4.6. An initial certificate issued to a corporation or a partnership states that the investment project referred to in the certificate will likely be recognized as a major investment project.
4.7. The Minister issues an initial certificate in respect of an investment project to a corporation or a partnership if
(1) the project is to be carried out after 14 March 2000 and the corporation or partnership shows, to the Minister’s satisfaction, that the activities arising out of the project will be carried on in Québec;
(2) subject to subparagraph 1 of the second paragraph, the project concerns activities in
(a) the primary sector,
(b) the secondary sector, or
(c) the propulsive service sector;
(3) subject to subparagraph 2 of the second paragraph, the corporation or partnership shows, to the Minister’s satisfaction, that it is likely that, as a result of the carrying out of the project,
(a) not later than the end of the calendar year that includes the 36th month after the date referred to in the second paragraph of section 4.1 in respect of the project, a total payroll of at least $15,000,000, determined in accordance with section 4.8, will be generated,
(b) not later than the end of the calendar year that includes the 48th month after the date referred to in the second paragraph of section 4.1 in respect of the project, a total payroll of at least $4,000,000, determined in accordance with section 4.8, will be generated and the total capital investments attributable to its carrying out, determined in accordance with section 4.12, will be at least $300,000,000, or
(c) not later than the end of the calendar year that includes the 48th month after the date referred to in the second paragraph of section 4.1 in respect of the project, the total capital investments attributable to its carrying out, determined in accordance with section 4.12, will be at least $300,000,000, where the investment project consists in the expansion or modernization of a production unit; and
(4) if the investment project consists in the development of an international resort, the major portion of the building construction activities under the project must be entrusted to subcontractors.
If the investment project consists in the development of an international resort, the following rules apply:
(1) the project may also involve activities in the traditional service sector, particularly property management activities, including such management activities that are construction-related; and
(2) subparagraph 3 of the first paragraph is to be read without reference to subparagraphs a and c.
For the purposes of subparagraph 2 of the first paragraph, propulsive service sector means telecommunications services, electric power services, financial services and business services other than services offered by placement agencies and accounting services such as staffing services, computer services and related services, advertising services, architectural, engineering and other scientific and technical services, management consultancy services and services offered by law or notarial firms.
4.8. The total payroll generated by the carrying out of an investment project for all or part of a calendar year is,
(1) if none of the corporations or partnerships taking part in the project are associated, in the year or part of the year, with any other such corporation or partnership, the aggregate of all amounts each of which is the total payroll in respect of the carrying out of the project, for that year or part of the year, of such a corporation or partnership, determined in accordance with section 4.9; or
(2) if corporations or partnerships taking part in the project are associated with each other in the year or part of the year, the amount determined by the formula

A + B.

In the formula in subparagraph 2 of the first paragraph,
(1) A is the aggregate of all amounts each of which is the total payroll in respect of the carrying out of the investment project for the year or part of the year, determined in accordance with section 4.9, of a corporation or partnership taking part in the project that is not associated, in the year or part of the year, with any other such corporation or partnership; and
(2) B is the aggregate of all amounts each of which is the total payroll in respect of the carrying out of the investment project for the year or part of the year of an associated group of investors in respect of the project, determined in accordance with section 4.10.
In this section and section 4.10, associated group of investors in respect of an investment project for all or part of a calendar year means all the corporations and partnerships taking part in the investment project that are associated with each other in the year or part of the year.
4.9. The total payroll in respect of the carrying out of an investment project, for all or part of a calendar year, of a corporation or partnership taking part in the project that is not associated, in the year or part of the year, with any other such corporation or partnership is, subject to section 4.11, the lesser of
(1) the amount by which the aggregate of all amounts each of which is the wages paid by the corporation or partnership, in the year or part of the year, to an individual who reports for work at an establishment situated in Québec and whose duties relate to the activities that the project involves exceeds the aggregate of all amounts each of which is the wages paid by the corporation or partnership, in the base year in relation to the investment project or in the particular part of the base year, to an individual who reported for work at an establishment situated in Québec and whose duties related to the activities that the project involves; and
(2) the amount determined by the formula

A − B.

In the formula in subparagraph 2 of the first paragraph,
(1) A is the aggregate of all amounts each of which is the wages paid, in the year or part of the year, by the corporation or partnership, or by another person or partnership that has an establishment in Québec and is associated with the corporation or partnership in the year or part of the year, to an individual who reports for work at an establishment situated in Québec and works in the sector of activity in which the investment project is carried out or in a related sector of activity; and
(2) B is the aggregate of all amounts each of which is the wages paid by a person or partnership referred to in subparagraph 1, in the base year in relation to the project or in the particular part of the base year, to an individual who reported for work at an establishment situated in Québec and worked in a sector referred to in that subparagraph.
In this section and section 4.10, base year in relation to an investment project means the calendar year preceding the one that includes either the date of the beginning of the tax-free period that is specified by the Minister in the first annual certificate issued in respect of the project or that would be so specified if a first annual certificate had been issued in its respect.
For the purposes of this section and section 4.10, the particular part of a base year in relation to an investment project is the same part of that year as the part of the calendar year for which the total payroll in respect of the carrying out of the investment project is determined.
4.10. The total payroll in respect of the carrying out of an investment project of an associated group of investors in respect of the project, for all or part of a calendar year, is, subject to section 4.11, the lesser of
(1) the amount by which the aggregate of all amounts each of which is the wages paid by a corporation or partnership that is a member of the associated group of investors, in the year or part of the year, to an individual who reports for work at an establishment situated in Québec and whose duties relate to the activities that the project involves exceeds the aggregate of all amounts each of which is the wages paid by such a corporation or partnership, in the base year in relation to the investment project or in the particular part of the base year, to an individual who reported for work at an establishment situated in Québec and whose duties related to the activities that the project involves; and
(2) the amount determined by the formula

A − B.

In the formula in subparagraph 2 of the first paragraph,
(1) A is the aggregate of all amounts each of which is the wages paid, in the year or part of the year, by a corporation or partnership that is a member of the associated group of investors, or by another person or partnership who has an establishment in Québec and is associated with such a member in the year or part of the year, to an individual who reports for work at an establishment situated in Québec and works in the sector of activity in which the investment project is carried out or in a related sector of activity; and
(2) B is the aggregate of all amounts each of which is the wages paid by a person or partnership referred to in subparagraph 1, in the base year in relation to the investment project or in the particular part of the base year, to an individual who reported for work at an establishment situated in Québec and worked in a sector referred to in that subparagraph.
4.11. In determining the total payroll in respect of the carrying out of an investment project for all or part of a calendar year in accordance with section 4.9 or 4.10, the following amounts are not to be taken into account:
(1) the amount of the wages that are paid, in the project start-up period that is included in the year or part of the year, to an individual whose duties consist in building, extending, improving or modernizing the site on which the project is to be carried out, including, if the project consists in the development of an international resort, building lodging units;
(2) the amount that a corporation or partnership that is carrying out the project pays, at any time in the year or part of the year that is after the time of its acquisition of a given business carried on in Québec, to an individual whose duties relate to activities that were carried on in the course of the given business before the time of the acquisition, unless the given business is the business within which the project is carried out and the Minister agreed to the transfer of the carrying out of the investment project to the corporation or partnership in accordance with section 4.4; and
(3) the amount of the wages that a corporation or partnership that is carrying out the project pays, at any time in the year or part of the year that is subsequent to the time particular activities of a business carried on in Québec are transferred to the corporation or partnership under an outsourcing contract, to an individual whose duties relate to the particular activities.
4.12. Subject to the second paragraph, the total capital investments attributable to the carrying out of an investment project, at a particular time, correspond to the aggregate of the capital expenditures incurred to obtain goods or services with a view to establishing, in Québec, the business or part of the business within which activities arising out of the carrying out of the investment project are carried on, or with a view to increasing, improving or modernizing the production of such a business or part of a business.
If the investment project consists in developing an international resort, an expenditure incurred with a view to building lodging units intended for sale is deemed, at a particular time, to be a capital expenditure referred to in the first paragraph, provided the total capital investments attributable to the carrying out of the project, determined without reference to this paragraph, is, at that time, at least $150,000,000.
DIVISION III
ANNUAL CERTIFICATE
4.13. An annual certificate issued to a corporation or a partnership for a calendar year in respect of an investment project certifies that the corporation or partnership is continuing, in the calendar year, to carry out the investment project in respect of which an initial certificate was issued to it. The annual certificate also confirms that the project is recognized for the year as a major investment project, unless it is issued under the fourth paragraph of section 4.15, in which case it states that it is likely that the project will be so recognized.
In the first annual certificate issued in respect of an investment project, the Minister specifies the date of the beginning of the corporation’s or partnership’s tax-free period in relation to the project.
4.14. An annual certificate in respect of an investment project may be issued for a particular calendar year to a corporation or a partnership if,
(1) in the case of a project recognized as a major investment project under subparagraph a of subparagraph 3 of the first paragraph of section 4.7, the total payroll generated by the carrying out of the project is at least $15,000,000 for the particular year;
(2) in the case of a project recognized as a major investment project under subparagraph b of subparagraph 3 of the first paragraph of section 4.7, the total payroll generated by the carrying out of the project is at least $4,000,000 for the particular year and the total capital investments attributable to the carrying out of the project, at any time in the particular year, is at least $300,000,000; or
(3) in the case of a project recognized as a major investment project under subparagraph c of subparagraph 3 of the first paragraph of section 4.7, the total capital investments attributable to the carrying out of the project, at any time in the particular year, is at least $300,000,000.
If a first annual certificate was issued in respect of an investment project for a particular calendar year, the requirements of the first paragraph that are applicable to the project are deemed to be met for the purposes of the issue of an annual certificate for any calendar year that is subsequent to the particular year and that is included in the start-up period of the project.
The Minister may not issue an annual certificate to a corporation or a partnership, in respect of an investment project, for a calendar year that is subsequent to the start-up period of the project unless a first annual certificate has been issued in respect of the project for a calendar year included in that period. In addition, an annual certificate may be issued in respect of an investment project only for a calendar year or part of a calendar year that is included in the corporation’s or partnership’s tax-free period in relation to the project.
If the investment project consists in the development of an international resort, subparagraph 2 of the first paragraph is to be read, in relation to a particular calendar year other than the first calendar year for which an annual certificate is issued in respect of the project, as if $300,000,000 was replaced by $150,000,000 .
4.15. The Minister may, at any time, issue a first annual certificate in respect of an investment project referred to in subparagraph a of subparagraph 3 of the first paragraph of section 4.7 for a particular calendar year although, at that time, the project does not meet the requirement of subparagraph 1 of the first paragraph of section 4.14, if
(1) the product obtained by multiplying the total payroll that has been generated by the carrying out of the project for the part of the particular year taken into account by the Minister by the proportion that 365 is of the number of days in that part of the particular year is equal to or greater than $15,000,000; and
(2) the Minister is of the opinion that, in light of all the undertakings given by the end of the part of the particular year taken into account by the Minister in relation to the project, the total payroll that will be generated by the carrying out of the project for the particular year will be equal to or greater than $15,000,000.
The Minister may also, at any time, issue a first annual certificate in respect of an investment project referred to in subparagraph b of subparagraph 3 of the first paragraph of section 4.7 for a particular calendar year although, at that time, the project does not meet the requirements of subparagraph 2 of the first paragraph of section 4.14, if the Minister is of the opinion that, in light of all the undertakings given in relation to the project and of the forecasted increases in the total payroll that will be generated by the carrying out of the project, those requirements will likely have been met, for a calendar year, by the end of the start-up period of the project.
The Minister may furthermore, at any time, issue a first annual certificate in respect of an investment project referred to in subparagraph c of subparagraph 3 of the first paragraph of section 4.7 for a particular calendar year although, at that time, the project does not meet the requirement of subparagraph 3 of the first paragraph of section 4.14, if the Minister is of the opinion that, in light of all the undertakings given in relation to the project, that requirement will likely have been met, for a calendar year, by the end of the start-up period of the project.
Moreover, the Minister may, at any time, issue an annual certificate in respect of an investment project referred to in any of subparagraphs a to c of subparagraph 3 of the first paragraph of section 4.7 for a particular calendar year that is subsequent to the start-up period of the project, although, at that time, the project does not meet the requirements of subparagraph 1, 2 or 3, as applicable, of the first paragraph of section 4.14, if the Minister is of the opinion that they will likely have been met by the end of the particular year.
4.16. The Minister is justified in revoking the first annual certificate issued, for a particular calendar year, to a corporation or a partnership in respect of an investment project under the first paragraph of section 4.15 if the Minister ascertains that the requirement of subparagraph 1 of the first paragraph of section 4.14 has not been met by the end of that year. In addition, the Minister may revoke the first annual certificate issued, for a particular calendar year, to a corporation or a partnership in respect of an investment project under the second or third paragraph of section 4.15 if the Minister ascertains that the requirements of subparagraph 2 or 3, as applicable, of the first paragraph of section 4.14 have been met neither for the particular calendar year nor for a subsequent calendar year that is included in the start-up period of the project. In such cases, the effective date of the revocation is the date of coming into force of the certificate that is revoked.
If, at a particular time, the first annual certificate that was issued to a corporation or a partnership for a particular calendar year in respect of an investment project is revoked by the Minister, the following rules apply:
(1) the certificate is deemed never to have been issued;
(2) the Minister may, for a calendar year that is subsequent to the particular year and that is included in the start-up period of the project, issue a first annual certificate to the corporation or partnership in respect of the project or amend an annual certificate that the Minister has already issued to it so that that certificate becomes the first annual certificate of the corporation or partnership if, for that subsequent year, the project meets the requirements of any of subparagraphs 1 to 3 of the first paragraph of section 4.14 or if one of the first three paragraphs of section 4.15 so allows; and
(3) any annual certificate issued to the corporation or partnership in respect of the project for any calendar year that is not subsequent to the calendar year for which a certificate referred to in subparagraph 2 was issued is deemed to be revoked by the Minister at that particular time.
The effective date of the deemed revocation under subparagraph 3 of the second paragraph is the date of coming into force of the annual certificate that is deemed to be revoked.
4.17. The Minister is justified in revoking an annual certificate that was issued for a calendar year in respect of an investment project under the fourth paragraph of section 4.15 if the Minister ascertains that the requirements of whichever of subparagraphs 1 to 3 of the first paragraph of section 4.14 that is applicable to the project have not been met by the end of the year. In such a case, the effective date of the revocation is the date of coming into force of the annual certificate.
CHAPTER V
SECTORAL PARAMETERS OF DEDUCTION RELATING TO FOREIGN SPECIALIST IN SERVICE OF STOCK EXCHANGE OR SECURITIES CLEARING-HOUSE
DIVISION I
INTERPRETATION AND GENERAL
5.1. In this chapter, unless the context indicates otherwise,
eligible activities of a recognized business carried on by an eligible employer in a taxation year means the activities relating to the operations carried out in the course of the recognized business;
eligible employer for a taxation year means a corporation that declares to the Minister that it
(1) carries on a recognized business in Québec in the year;
(2) carries out eligible activities of that recognized business in an establishment located within the urban agglomeration of Montréal; and
(3) pays employees of an establishment located in Québec more than 50% of the wages it pays in the year;
foreign specialist tax holiday means the fiscal measure provided for in Title VII.2.6 of Book IV of Part I of the Taxation Act, which allows an individual to deduct an amount in computing his or her taxable income for a taxation year under section 737.18.34 of that Act;
recognized business has the meaning assigned by the first paragraph of section 737.18.29 of the Taxation Act;
urban agglomeration of Montréal means the urban agglomeration described in section 4 of the Act respecting the exercise of certain municipal powers in certain urban agglomerations (chapter E-20.001).
In determining, for the purposes of the definition of eligible employer in the first paragraph, the proportion of wages an employer pays employees of an establishment located in Québec, the corporation must observe the rules set out in the fourth paragraph of section 737.18.29 of the Taxation Act.
5.2. In order for an individual who works for an eligible employer to benefit from the foreign specialist tax holiday for a taxation year, the eligible employer must obtain a certificate in respect of the individual (in this chapter referred to as a specialist certificate ) from the Minister. The certificate must be obtained for each taxation year for which the individual may claim the tax holiday.
The eligible employer must file the application for the certificate before 1 March of the calendar year that follows the individual’s taxation year concerned.
DIVISION II
SPECIALIST CERTIFICATE
5.3. A specialist certificate issued to an eligible employer certifies that the individual referred to in the certificate is recognized as a specialist in respect of the employer for the taxation year for which the application for the certificate is made or for the part of the year specified in it.
5.4. An individual may be recognized as a specialist in respect of an eligible employer if
(1) the individual works full-time for the employer, that is, at least 26 hours per week, for an expected minimum period of 40 weeks;
(2) the individual’s duties with the employer consist exclusively or almost exclusively, on a continuous basis, in undertaking, supervising or directly supporting work related to the eligible activities of a recognized business carried on by the employer; and
(3) the individual performs his or her duties in an establishment of the employer located within the urban agglomeration of Montréal where the employer’s recognized business is carried on, or elsewhere but in connection with his or her work relating to such an establishment.
5.5. If an individual is temporarily absent from work for reasons the Minister considers reasonable, the Minister may, for the purpose of determining whether the individual meets the conditions for recognition as a specialist in respect of an eligible employer, consider that the individual continued to perform his or her duties throughout the period of absence exactly as he or she was performing them immediately before the beginning of that period.
5.6. An eligible employer to which a specialist certificate is issued for a taxation year must promptly send a copy of the certificate to the individual concerned so that it may be attached to his or her fiscal return for the year.
2012, c. 1, Schedule E.
MINISTER OF NATURAL RESOURCES AND WILDLIFE
CHAPTER I
MEASURES COVERED BY THIS SCHEDULE
1.1. The Minister of Natural Resources and Wildlife administers the sectoral parameters of the tax credit for the construction and major repair of public access roads and bridges in forest areas provided for in sections 1029.8.36.59.12 to 1029.8.36.59.20 of the Taxation Act (chapter I-3).
CHAPTER II
SECTORAL PARAMETERS OF CREDIT FOR CONSTRUCTION AND MAJOR REPAIR OF PUBLIC ACCESS ROADS AND BRIDGES IN FOREST AREAS
DIVISION I
INTERPRETATION AND GENERAL
2.1. In this chapter, unless the context indicates otherwise,
annual forest management plan means a plan referred to in section 59 of the Forest Act (chapter F-4.1);
annual forest management report means a report referred to in section 70 of the Forest Act;
forest management agreement means an agreement referred to in section 84.1 of the Forest Act;
forest management contract means a contract referred to in section 102 of the Forest Act;
special forest management plan means a plan referred to in section 79 of the Forest Act;
tax credit for the construction of access roads in forest areas means the fiscal measure provided for in Division II.6.5.3 of Chapter III.1 of Title III of Book IX of Part I of the Taxation Act, under which a corporation is deemed to have paid an amount to the Minister of Revenue on account of its tax payable under that Part for a taxation year;
timber supply and forest management agreement means an agreement referred to in section 36 of the Forest Act.
2.2. To benefit from the tax credit for the construction of access roads in forest areas in respect of an access road or a bridge that a corporation is to build or have built or that is to undergo major repair, the corporation or, if the corporation claims the tax credit as a member of a partnership, the partnership must obtain a certificate in respect of that access road or bridge (in this chapter referred to as an access road certificate ) from the Minister.
For the purposes of the first paragraph, where the Minister issued an access road certificate to a corporation or a partnership before 31 March 2010, the period for which the certificate was issued is deemed to have ended on 31 December 2010, unless it ended before that date.
DIVISION II
ACCESS ROAD CERTIFICATE
2.3. At the time the annual forest management plan is submitted, a corporation or a partnership must provide the Minister with information on the access roads and bridges it intends to build or refurbish during the period covered by the plan and for which access road certificates are to be applied for. The corporation or partnership must also provide the Minister with such information on submitting amendments to the plan.
An application for such a certificate must be filed before the end of the period referred to in the annual plan in respect of any access road or bridge mentioned in the annual plan or a special forest management plan.
2.4. An access road certificate issued to a corporation or a partnership certifies that the access road or bridge referred to in the certificate is recognized as an eligible access road or bridge of the corporation or partnership for the period specified in the certificate.
The Minister may not specify a period ending after 31 March 2013 on an access road certificate.
2.5. To be recognized as an eligible access road of a corporation or a partnership, an access road to be built or to undergo major repair work must
(1) be expected to have a service life of more than three years;
(2) be located or be built on Québec public lands;
(3) be a penetration road, or part of such a road, that gives access to the territory and resources, in particular for the harvest of timber, and be linked to at least two secondary roads having a minimum length of 300 m each; and
(4) appear in an annual forest management plan approved by the Minister within the scope of a timber supply and forest management agreement, a forest management agreement or a forest management contract to which the corporation or partnership is a party, or in a special forest management plan.
For the purposes of subparagraph 3 of the first paragraph, any forest road, including a winter road, is considered to be a secondary road. Furthermore, a secondary road to be built under a five-year plan may be taken into consideration to determine whether an access road meets the condition of that subparagraph 3.
2.6. An access road may be recognized as an eligible access road of a corporation or a partnership only if the construction or major repair work to be carried out on it meets the requirements of the Forest Act and the Regulation respecting standards of forest management for forests in the public domain (chapter F-4.1, r. 7).
Similarly, in order for the access road to be recognized as an eligible access road, the construction or major repair work must meet the design criteria contained in the Guide de signalisation routière sur les terres et dans les forêts du domaine de l’État (2001), published by the Minister, and the access road must, once the work is completed, belong exclusively to one of classes 1 to 4, or to the non-standard class, listed in the forest road classification included in that guide.
Major repair work on an access road is repair work required to improve the state of the road to the point where, once the work is completed, the road will be in a class higher than that to which it belonged before the work started. Such work must be carried on over a distance of at least 500 m.
2.7. To be recognized as an eligible bridge of a corporation or a partnership, a bridge to be built or to undergo major repair work must be part of an access road that meets the conditions of the first paragraph of section 2.5 or be intended to be built to be part of such an access road.
2.8. A bridge may be recognized as an eligible bridge of a corporation or a partnership only if the construction or major repair work to be carried out meets the requirements of the Forest Act and the Regulation respecting standards of forest management for forests in the public domain.
Major repair work on a bridge is repair work required to improve its load-carrying capacity. Such work includes work to ensure the stability of the bridge and the safety of users.
DIVISION III
VERIFICATION
2.9. Once the construction or major repair work on an access road or a bridge is completed, a corporation or a partnership must submit to the Minister the prescribed form containing prescribed information and, in the case of a bridge, the plans and specifications of the bridge as built or improved.
2.10. At the time the annual forest management report is submitted, a corporation or a partnership must, with respect to the completed access roads and bridges for which an access road certificate was issued to it, provide the Minister with all the information needed to ascertain that the construction or repair work that was carried out complies with the conditions of this chapter for the qualification of those infrastructures as eligible access roads or bridges.
2012, c. 1, Schedule F.
The functions of the Minister of Natural Resources and Wildlife provided for in this Act are assigned to the Minister of Forests, Wildlife and Parks. Order in Council 1291-2018 dated 18 October 2018, (2018) 150 G.O. 2 (French), 7384.
MINISTER OF TRANSPORT
CHAPTER I
MEASURES COVERED BY THIS SCHEDULE
1.1. The Minister of Transport administers the sectoral parameters of the deduction granted to seamen engaged in the international transportation of freight provided for in sections 737.27 to 737.28.1 of the Taxation Act (chapter I-3).
CHAPTER II
SECTORAL PARAMETERS OF DEDUCTION GRANTED TO SEAMEN ENGAGED IN INTERNATIONAL TRANSPORTATION OF FREIGHT
DIVISION I
INTERPRETATION AND GENERAL
2.1. In this chapter, unless the context indicates otherwise,
eligible shipowner means a person or partnership who declares to the Minister that the person or partnership is an eligible shipowner within the meaning of section 737.27 of the Taxation Act;
tax holiday for seamen engaged in the international transportation of freight means the fiscal measure provided for in Title VII.6 of Book IV of Part I of the Taxation Act, under which an individual may deduct an amount in computing his or her taxable income for a taxation year.
2.2. In order for an individual who works for an eligible shipowner to benefit from the tax holiday for seamen engaged in the international transportation of freight for a taxation year, the eligible shipowner must obtain the following certificates from the Minister:
(1) a certificate in respect of the individual (in this chapter referred to as a seaman certificate ); and
(2) a certificate in respect of the vessel on which the individual performed the duties relating to his or her work (in this chapter referred to as a vessel certificate ).
The certificates referred to in the first paragraph must be obtained for each taxation year for which the individual may claim the tax holiday for seamen engaged in the international transportation of freight.
The application for the seaman certificate must be filed before 1 March of the calendar year that follows the individual’s taxation year concerned.
The application for the vessel certificate must be filed before 1 February of the calendar year that follows the individual’s taxation year to which the application for the seaman certificate relates. A detailed statement of the assignment of the vessel and a list of the individuals making up its crew for any period covered by the certificate must be filed with the application.
DIVISION II
SEAMAN CERTIFICATE
2.3. A seaman certificate issued to an eligible shipowner certifies that the individual referred to in the certificate is recognized as an eligible seaman in respect of that shipowner for the taxation year for which the application for the certificate was made. The certificate is deemed to specify the date of the beginning of that taxation year as the date of its coming into force.
The certificate states the name of the eligible shipowner and that of the vessel on which the individual performed his or her duties and for which a vessel certificate was issued to that shipowner.
The certificate also specifies any period described in paragraph 2 of section 2.4 for which the conditions of that section are met.
2.4. An individual may be recognized as an eligible seaman in respect of an eligible shipowner for a taxation year, if
(1) the individual worked for the shipowner during the year; and
(2) for a period of at least 10 consecutive days beginning or ending in the year, the individual performed all or substantially all of his or her duties on a vessel engaged in international freight transportation for which a vessel certificate was issued to the shipowner.
2.5. An eligible shipowner to which a seaman certificate is issued for a taxation year must promptly send a copy of the certificate to the individual concerned so that it may be attached to his or her fiscal return for the year.
DIVISION III
VESSEL CERTIFICATE
2.6. The vessel certificate issued to an eligible shipowner certifies that the vessel referred to in the certificate is recognized as an eligible vessel for the individual’s taxation year to which the application for the seaman certificate relates. It is deemed to specify the date of the beginning of that taxation year as the date of its coming into force.
2.7. A vessel may be recognized as an eligible vessel for a taxation year if
(1) it is a Canadian-flagged vessel;
(2) its port of registry is located in Québec; and
(3) it is engaged in freight transportation outside Canadian waters for periods of at least 10 consecutive days beginning or ending in the year.
2012, c. 1, Schedule G.
SOCIÉTÉ DE DÉVELOPPEMENT DES ENTREPRISES CULTURELLES
CHAPTER I
MEASURES COVERED BY THIS SCHEDULE
1.1. The Société de développement des entreprises culturelles administers the sectoral parameters of the following fiscal measures:
(1) the deduction in respect of a foreign worker holding a key position in a foreign production provided for in sections 737.22.0.9 to 737.22.0.11 of the Taxation Act (chapter I-3);
(2) the tax credit for Québec film productions provided for in sections 1029.8.34 to 1029.8.36 of the Taxation Act;
(3) the tax credit for film dubbing provided for in sections 1029.8.36.0.0.1 to 1029.8.36.0.0.3 of the Taxation Act;
(4) the film production services tax credit provided for in sections 1029.8.36.0.0.4 to 1029.8.36.0.0.6 of the Taxation Act;
(5) the tax credit for the production of sound recordings provided for in sections 1029.8.36.0.0.7 to 1029.8.36.0.0.9 of the Taxation Act;
(6) the tax credit for the production of performances provided for in sections 1029.8.36.0.0.10 to 1029.8.36.0.0.12 of the Taxation Act; and
(7) the tax credit for book publishing provided for in sections 1029.8.36.0.0.13 to 1029.8.36.0.0.15 of the Taxation Act.
CHAPTER II
SECTORAL PARAMETERS OF DEDUCTION IN RESPECT OF FOREIGN WORKER HOLDING KEY POSITION IN FOREIGN PRODUCTION
DIVISION I
INTERPRETATION AND GENERAL
2.1. In this chapter, unless the context indicates otherwise,
film production services tax credit has the meaning assigned by the first paragraph of section 5.1;
production means a motion picture film, a video tape or a set of episodes or broadcasts that are part of a series;
tax holiday for a foreign worker holding a key position in a foreign production means the fiscal measure provided for in Title VII.3.3 of Book IV of Part I of the Taxation Act, under which an individual may deduct an amount in computing the individual’s taxable income for a taxation year.
2.2. An individual must obtain a certificate from the Société de développement des entreprises culturelles in respect of each eligible production for which the individual intends to claim the tax holiday for a foreign worker holding a key position in a foreign production.
2.3. The Société de développement des entreprises culturelles must, in order to determine whether a production is considered as an eligible production, apply the same rules as those provided for in sections 5.6 to 5.8 to determine whether a production is recognized as an eligible production for the purposes of the film production services tax credit.
DIVISION II
CERTIFICATE
2.4. A certificate issued to an individual under this chapter certifies that the individual works as a producer, an executive producer, a director, an artistic director, a director of photography, a musical director, a chief film editor or a visual effects supervisor, in the course of the eligible production referred to in the certificate.
2.5. An individual may be recognized as a producer in respect of an eligible production if the individual is the person responsible for decision-making in respect of the eligible production throughout the project development and production processes.
CHAPTER III
SECTORAL PARAMETERS OF TAX CREDIT FOR QUÉBEC FILM PRODUCTIONS
DIVISION I
INTERPRETATION AND GENERAL
3.1. In this chapter, unless the context indicates otherwise,
chroma key shooting means any studio shooting in front of a plain coloured screen, generally blue or green, allowing, by means of electronic wizardry, the incorporation of objects, images or special effects in the final image;
computer-aided special effects and animation means special effects and animation sequences, as generally understood in the industry, created using digital technology, excluding effects that are strictly sound effects, subtitles and animation sequences essentially created by means of editing techniques;
film means a property that is a motion picture film, a video tape or a set of episodes or broadcasts that are part of a series;
labour expenditure of a corporation for a taxation year in respect of a film means an expenditure that would be a labour expenditure of the corporation for the year in respect of the film for the purposes of the tax credit for Québec film productions if no reference were made to subparagraph e of the second paragraph of section 1029.8.34 of the Taxation Act;
producer in respect of a film means the individual responsible for decision-making in respect of the film throughout the project development and production processes;
production costs of a corporation in respect of a film means costs incurred by the corporation in respect of the film that are production costs referred to in the portion of subparagraph i of paragraph b of the definition of qualified labour expenditure in the first paragraph of section 1029.8.34 of the Taxation Act before subparagraph 1;
tax credit for Québec film productions means the fiscal measure provided for in Division II.6 of Chapter III.1 of Title III of Book IX of Part I of the Taxation Act, under which a corporation is deemed to have paid an amount to the Minister of Revenue on account of its tax payable under that Part for a taxation year;
television broadcaster means the holder of a broadcasting licence issued by the Canadian Radio-television and Telecommunications Commission.
Any reference made, in a provision of this chapter, to an amount incurred or paid, including a labour expenditure, costs, a remuneration, a talent fee or an advance, is to be replaced, if the provision applies in respect of a favourable advance ruling, by a reference to such an amount determined according to a budget.
In this chapter, a reference to a favourable advance ruling is a reference to the document certifying the favourable advance ruling given.
3.2. A corporation must obtain a favourable advance ruling or a qualification certificate from the Société de développement des entreprises culturelles in respect of each film for which it intends to claim the tax credit for Québec film productions.
In addition, a corporation must obtain one or more of the following certificates from the Société de développement des entreprises culturelles, as applicable:
(1) if the film is one for which the corporation intends to claim one or more of the following tax credit enhancements:
(a) the tax credit enhancement applicable to certain French-language productions, a certificate in respect of the film (in this chapter referred to as a French-language production certificate ),
(b) the tax credit enhancement applicable to giant-screen films, a certificate in respect of the film (in this chapter referred to as a giant-screen film certificate ), or
(c) the tax credit enhancement applicable to certain productions that do not receive an amount of financial assistance granted by a public body, a certificate in respect of the film (in this chapter referred to as a production with no financial assistance certificate ); and
(2) if it intends to avail itself of subparagraph a.1 of the first paragraph of section 1029.8.35 of the Taxation Act, a certificate in respect of the corporation as a regional corporation (in this chapter referred to as a regional corporation certificate ).
If, at any time in the taxation year for which the corporation intends to benefit from the tax credit for Québec film productions or in the 24 months that precede that year, the corporation is not dealing at arm’s length with a corporation that is a television broadcaster, it must also obtain a certificate (in this chapter referred to as a non-arm’s length certificate ) from the Société de développement des entreprises culturelles.
The certificate referred to in subparagraph 2 of the second paragraph must be obtained for each taxation year for which the corporation intends to avail itself in respect of a film of subparagraph a.1 of the first paragraph of section 1029.8.35 of the Taxation Act. Similarly, the non-arm’s length certificate must be obtained for each taxation year referred to in the third paragraph for which the corporation intends to claim the tax credit for Québec film productions.
DIVISION II
FAVOURABLE ADVANCE RULING AND QUALIFICATION CERTIFICATE
3.3. A qualification certificate must be obtained for a film whose first trial composite is completed. If applicable, the qualification certificate confirms the favourable advance ruling given in respect of the film.
An application by a corporation for the issue of a qualification certificate in respect of a film must be filed,
(1) if the film was given a favourable advance ruling, within 18 months after the end of the corporation’s taxation year that includes the recording date of its first trial composite of the film; and
(2) in any other case, within three years after the end of that taxation year.
The Société de développement des entreprises culturelles may issue a qualification certificate to a corporation in respect of a film only if, at the time of the application for the qualification certificate, at least 95% of the amount that is the total production costs incurred by the corporation in respect of the film has been paid.
The Société de développement des entreprises culturelles must revoke a favourable advance ruling given to a corporation in respect of a film if the corporation fails to file an application for a qualification certificate in respect of the film within the time limit specified in the second paragraph or if such an application is denied. The effective date of the revocation is the date of coming into force of the favourable advance ruling.
3.4. A favourable advance ruling or a qualification certificate given or issued to a corporation under this chapter certifies that the film referred to in it is recognized as a Québec film production.
If the corporation holds a valid regional corporation certificate, the Société de développement des entreprises culturelles must make sure, in the case of a co-produced film, that the following conditions have been met:
(1) the corporation is making the film either with another corporation in respect of which it is established, to the satisfaction of the Société de développement des entreprises culturelles, that it is a qualified corporation for the purposes of the tax credit for Québec film productions, or under a government agreement to which the Gouvernement du Québec, the Government of Canada or any of their departments, agencies or bodies is a party;
(2) the corporation is actively involved in its development; and
(3) the corporation’s share of the labour expenditure and production costs in respect of the film is a reasonable reflection of the corporation’s share of copyrights and revenues in the film, as well as its share of artistic, technical and financial responsibility with regard to the co-production of the film.
For the purposes of subparagraph b.1 of the second paragraph of section 1029.8.34 of the Taxation Act, the favourable advance ruling or the qualification certificate specifies, in the case of a docuseries, the name of the person who plays the role of the main character in the film.
If the film is a co-production, the favourable advance ruling or the qualification certificate specifies the corporation’s share, expressed as a percentage, of the labour expenditure and production costs in respect of the film for each taxation year for which they were incurred.
For the purposes of this section,
labour expenditure in respect of a film for a taxation year means the amount that would be obtained if, for each of the items included in the corporation’s labour expenditure in respect of the film for the taxation year, the amounts that the corporation incurred were replaced by all the amounts incurred in respect of the film and all those amounts were added together;
production costs in respect of a film for a taxation year means the aggregate of the costs incurred in respect of the film before the end of the year that are production costs referred to in the portion of subparagraph i of paragraph b of the definition of qualified labour expenditure in the first paragraph of section 1029.8.34 of the Taxation Act before subparagraph 1, or that would be such production costs had they been incurred by the corporation.
3.5. The Société de développement des entreprises culturelles attaches to the favourable advance ruling or the qualification certificate it gives or issues in respect of a film to a corporation referred to in subparagraph 2 of the second paragraph of section 3.2 a document specifying, by budgetary item, the amount that is the portion of the corporation’s labour expenditure in respect of the film, for any taxation year for which the favourable advance ruling or qualification certificate is given or issued, that relates to services rendered in Québec, outside the Montréal area, in relation to the film.
However, in the case of a co-produced film, the first paragraph applies only if the conditions of the second paragraph of section 3.4 are met.
In this section, the Montréal area means the portion of the territory of Québec located within 25 km, by the shortest passable road normally used, from any point of the circumference of a circle having a radius of 25 km the centre of which is the Papineau subway station.
3.6. The Société de développement des entreprises culturelles attaches to the favourable advance ruling or the qualification certificate it gives or issues in respect of a film for which a corporation intends to avail itself of subparagraph b of the first paragraph of section 1029.8.35 of the Taxation Act, a document specifying, by budgetary item, the amount that is the portion of the corporation’s labour expenditure in respect of the film, for any taxation year for which the favourable advance ruling or the qualification certificate is given or issued, that relates to eligible computer-aided special effects and animation activities, in relation to the film.
Activities that contribute directly to the creation of computer-aided special effects and animation and to chroma keying, such as motion capture, correction of animation curves, rendering, image retouching, graphics, filming, the use of computerized and automated animation benches, the use of computer-assisted automated cameras and chroma key shooting are considered to be eligible computer-aided special effects and animation activities.
3.7. A film other than an inter-provincial co-production may be recognized as a Québec film production if
(1) the film belongs to an eligible class of films;
(2) no part of the film belongs to a class of films described in section 3.9 or is a variety or magazine program other than those that are described in subparagraph 4 or 5 of the first paragraph of section 3.8; and
(3) the film meets the following requirements:
(a) the exploitation requirements of section 3.10,
(b) the production requirements of section 3.11,
(c) in the case of films with a running length of 75 minutes or longer, the creative personnel requirements of section 3.12, and
(d) the production costs requirements of section 3.13.
A film that is an inter-provincial co-production may be recognized as a Québec film production if
(1) the Québec part of the film belongs to an eligible class of films;
(2) the Québec part of the film meets
(a) the exploitation requirements of section 3.10, and
(b) the production requirements of section 3.11;
(3) at least 75% of the production costs incurred in respect of the Québec part of the film or, in the case of a serial film, in respect of the Québec part of all the episodes, other than the costs related to financing the film, is paid to individuals who were resident in Québec at the end of the calendar year (in this section referred to as the particular year ) that precedes the year in which the application for a favourable advance ruling or a qualification certificate was filed in respect of the film, or to corporations or partnerships that had an establishment in Québec during the taxation year of the corporation in which the application was filed; and
(4) the corporation referred to in the first paragraph of section 3.2
(a) is co-producing the film with one or more co-producing corporations from one or more other provinces or territories of Canada,
(b) has a financial participation in the film equal to or greater than 20%,
(c) can show its effective independence with respect to the other corporations involved in the co-production of the film,
(d) has the necessary rights to import the film into Québec, in the same proportion as its financial participation in the film and its share of the rights to the receipts from the film, and
(e) has a creative and technical participation in the co-production of the film at least equal to its financial participation in the co-production of the film.
However, subparagraph 4 of the second paragraph does not apply to a film in respect of which the Société de développement des entreprises culturelles considers that work was sufficiently advanced on 13 March 2008.
In the case of a film made under a government co-production agreement entered into by another government in Canada or by any department or agency of such a government, the rules of subparagraphs 1 to 3 of the second paragraph also apply to the Canadian part of the film.
In addition, for the purpose of determining whether a film is an international co-production at a particular date, the policies and requirements of Telefilm Canada that apply on that date apply as if they were expressly specified in this division.
For the purposes of the second paragraph, production costs in respect of a film means the aggregate of the costs incurred in respect of the film by a corporation that are production costs referred to in the portion of subparagraph i of paragraph b of the definition of qualified labour expenditure in the first paragraph of section 1029.8.34 of the Taxation Act before subparagraph 1, or that would be such production costs had they been incurred by the corporation referred to in the first paragraph of section 3.2.
3.8. Subject to section 3.9, the following are eligible classes of films:
(1) fiction films, including films consisting entirely of sketches taken in full from a script and designed and arranged especially for television;
(2) documentaries comprising at least 30 minutes of programming or, in the case of a series, at least 30 minutes of programming per episode, and documentaries intended for children under 13 years of age, which may comprise less;
(3) television magazine and variety programs, including variety programs featuring educational games, quizzes and contests for children under 13 years of age that are broadcast not later than 7:00 p.m. Monday through Friday, or 7:30 p.m. on Saturday or Sunday;
(4) television variety programs, including games, quizzes and contests that meet any of the following requirements:
(a) at least two thirds of their content consists of performances by performing artists, other than interviews, or of recordings of improvisation matches,
(b) they are talk show-type programs during which all or substantially all the subjects of discussion are artistic, literary, dramatic or musical events or works, or
(c) all or substantially all of their content consists of performances by performing artists, other than interviews, or of recordings of improvisation matches, and of discussions concerning artistic, literary, dramatic or musical events or works; and
(5) television magazine programs that meet the following requirements:
(a) they consist of a series of at least seven episodes and are part of a program cycle,
(b) they are neither fiction, nor a reconstruction of actual events, nor reality television,
(c) each program comprises at least 30 minutes of programming,
(d) each program covers a number of subjects, whether or not they belong to the same field of knowledge, and
(e) each program consists of independent segments of comparable length.
In addition, to constitute eligible classes of films, the television magazine and variety programs referred to in subparagraphs 4 and 5 of the first paragraph must be broadcast in prime time, more specifically, in the case of a program broadcast Monday through Friday, between 6:00 p.m. and midnight, and in the case of a program broadcast on Saturday or Sunday, between 9:00 a.m. and midnight, unless
(1) the programs are intended primarily for an audience outside the Montréal metropolitan area;
(2) at least 60% of the amount that is the total production costs incurred by the corporation referred to in the first paragraph of section 3.2 in respect of the film, other than the costs related to financing the film, is paid to individuals domiciled outside the Montréal metropolitan area for at least two years before the date on which the shooting began, or to corporations whose principal establishment is located outside the Montréal metropolitan area; and
(3) the programs are produced by a business that has no establishment in the Montréal metropolitan area.
For the purposes of subparagraph b of subparagraph 5 of the first paragraph, a reality television production is an audiovisual production in which a situation is created and filmed to be edited into its final form. The situation features a place, a group of individuals and a theme.
For the purposes of the second paragraph, the Montréal metropolitan area means the territory of Île de Montréal, Île Jésus and the Montérégie administrative region (16), described in the Décret concernant la révision des limites des régions administratives du Québec (chapter D-11, r. 1).
3.9. The following are not eligible classes of films:
(1) films produced for industrial, commercial, institutional or business purposes;
(2) films produced for the purpose of teaching or learning a technique;
(3) films intended for an adult audience that contain explicit sex scenes;
(4) video clips;
(5) films featuring a sports event or a sports activity;
(6) news or public affairs programs, or news features;
(7) weather, road or stock market reports;
(8) gala, award or parade television programs that present a live or pre-recorded event, in real time, with or without modification during editing;
(9) games, quizzes and contests, in any form, except educational programs in the form of games, quizzes or contests intended for children under 13 years of age, and except the programs described in subparagraph 4 of the first paragraph of section 3.8;
(10) fundraising productions;
(11) reality television productions;
(12) making of productions; and
(13) films, other than documentaries, consisting exclusively or almost exclusively of stock footage.
For the purposes of subparagraph 11 of the first paragraph, a reality television production is an audiovisual production in which a situation is created and filmed to be edited into its final form. The situation features a place, a group of individuals and a theme.
3.10. The following exploitation requirements must be met by a film, as applicable:
(1) for a film whose primary market is the television market, there must be an undertaking from a television broadcaster to broadcast it in Québec;
(2) for a film whose primary market is the theatrical market,
(a) if the conditions under which a giant-screen film certificate may be obtained are met, there must be an undertaking that the film will be shown in Canada in a public performance venue, and
(b) in any other case, there must be an undertaking by the holder of a distribution licence that the film will be shown in Québec in a public performance venue primarily used for showing films of all classes;
(3) if a film is not an original French-language film and the application for a favourable advance ruling or a qualification certificate is filed in its respect with an undertaking by a television broadcaster to broadcast it in French in Québec or by the holder of a distribution licence that the film will be shown in French in theatres in Québec, the French dubbing of the film must be done in Québec, subject to the third paragraph;
(4) if a film is produced by a corporation that does not deal at arm’s length with a corporation that is a television broadcaster, it must be initially broadcast by a television broadcaster other than a corporation with which the corporation does not deal at arm’s length;
(5) if a film is intended to be broadcast in Québec, close-captioning for the hearing-impaired is mandatory, unless the producer shows that it is impossible to satisfy this condition for technical reasons; and
(6) the producer must give an undertaking to have a film closed-captioned for the hearing-impaired before exploiting it on the video market in Québec.
For the purposes of subparagraph b of subparagraph 2 of the first paragraph, class means a class specified in section 81 of the Cinema Act (chapter C-18.1).
The requirement of subparagraph 3 of the first paragraph does not apply if a film is an international co-production involving a country of the Francophonie and, under the official co-production agreement, the foreign co-producer is responsible for delivering an original French version.
The application for a favourable advance ruling in respect of a film must be filed with the undertakings referred to in subparagraph 1, subparagraph b of subparagraph 2 and subparagraph 6 of the first paragraph. Depending on the undertaking involved, when applying for a qualification certificate, the corporation must file a document confirming the television broadcasting of the film in Québec, its distribution in theatres in Québec or its dubbing.
The application for a qualification certificate in respect of a film must be filed with the undertaking referred to in subparagraph a of subparagraph 2 of the first paragraph.
3.11. The following production requirements must be met by a film:
(1) the position of producer must be held by an individual who was resident in Québec at the end of the calendar year (in this section referred to as the particular year ) that precedes the year in which an application for a favourable advance ruling or a qualification certificate is filed in respect of the film; and
(2) the corporation filing the application must control the production of the film.
If there is a succession of producers during the development of the project or the production of the film because, for instance, of a change in ownership of the film, the requirement of subparagraph 1 of the first paragraph is considered to be met only if all of the producers were resident in Québec at the end of the particular year.
3.12. The creative personnel requirements are met by a film if the film obtains, in respect of its creative personnel, according to the rules of the third paragraph,
(1) a minimum of six points out of ten, calculated by awarding the number of points specified in the second paragraph for a particular function of that personnel only if the individual who wholly performs the function was resident in Québec at the end of the calendar year (in this section referred to as the particular year ) that precedes the calendar year in which an application for a favourable advance ruling or a qualification certificate was filed in respect of the production; or
(2) a minimum of seven points out of ten, calculated by adding
(a) the total of the numbers each of which is the number of points specified in the second paragraph for a particular function of that personnel that is wholly performed by an individual who was resident in Québec at the end of the particular year, and
(b) the lesser of two and the total of the numbers each of which is the number of points specified in the second paragraph for a particular function of that personnel that is wholly performed by an individual who, at the end of the particular year, was not resident in Québec but was a Canadian citizen within the meaning of the Citizenship Act (R.S.C. 1985, c. C-29) or a permanent resident within the meaning of the Immigration and Refugee Protection Act (S.C. 2001, c. 27).
For the purposes of the first paragraph, the following number of points may be allotted to a film in respect of an individual:
(1) for the director, two points;
(2) for the screenwriter, two points;
(3) for the first lead actor, one point;
(4) for the second lead actor, one point;
(5) for the production designer, one point;
(6) for the director of photography, one point;
(7) for the music composer, one point; and
(8) for the chief film editor, one point.
The rules to which the first paragraph refers are the following:
(1) if the position of screenwriter is filled by more than one individual, the two points allotted for that function may, despite subparagraph 1 of the first paragraph and subparagraph a of subparagraph 2 of that paragraph, be taken into consideration only if all the individuals were resident in Québec at the end of the particular year or if one of them is
(a) an individual who was resident in Québec at the end of the particular year,
(b) the author of the script, provided that it is an original work or a film adaptation of a copyrighted work,
(c) the screenwriter who determines the final version of the script, and
(d) the screenwriter who receives the highest fee;
(2) the identity of the first and second lead actors is determined not only on the basis of the remuneration paid, regardless of its form, but also on the basis of on-screen time;
(3) if there is no actor, the individual who performs the function of dancer, singer, variety artist, host, announcer, moderator or off-screen interviewer or voices the part of a character in an animated film, depending on the nature of the film, may be substituted;
(4) the individual who is the focus of a documentary film is not considered to be an actor;
(5) the point for the function of music composer is allotted only if the music created for the film is an original work;
(6) in the case of an animated film, the function of animation camera operator is substituted for that of director of photography and the function of design supervisor for that of production designer; and
(7) if there is no production designer, the art director may be substituted and in the absence of an art director, the head set designer may be substituted.
However, the creative personnel requirements are not met by a film if it does not obtain at least two of the points allotted for the functions of director and screenwriter and at least one of the points allotted for the functions of first and second lead actors.
A documentary that is unable to obtain the minimum number of points specified in the first paragraph because some functions listed in the second paragraph are not performed by anyone is deemed to have obtained the minimum number of points if all the individuals who perform such functions during the production were resident in Québec at the end of the particular year.
3.13. The following production cost requirements must be met by a film:
(1) in the case of a film with a running length of 75 minutes or longer,
(a) at least 75% of the amount that is the total post-production costs, including costs incurred for laboratory work, film cutting, sound editing and re-recording, and preparing and integrating film credits and music, is paid for services provided in Québec, and
(b) at least 75% of the amount that is the total production costs incurred by the corporation referred to in the first paragraph of section 3.2 in respect of the film, excluding the costs listed in subparagraph a, the remuneration of the producer and of the creative personnel listed in the second paragraph of section 3.12 and the costs related to financing the film, is paid to individuals who were resident in Québec at the end of the calendar year (in the second paragraph referred to as the particular year