I-3 - Taxation Act

Section 1029.8.36.0.0.1 Disposition versions

2019-06-19

1029.8.36.0.0.1. In this division,

“eligible dubbing service” in relation to the production of a property that is a qualified production means

(a)  where the property is a feature film for theatres, any of the following services:

i.  the performance of actors,

ii.  adaptation, that is, translation of dialogue,

iii.  detection, that is, writing of synchronized dialogue, using conventional signs, of all the dialogue and mouth movements of all the characters of the original version,

iv.  calligraphy/grid/typing, that is, recopying the adapted text, taking into account the synchronization indications from detection, to be read by the actors during the recording of the dubbed version,

v.  stage management, that is, directing the actors during the recording,

v.1.  the audition, that is, the test session intended to establish the dubbing cast,

v.2.  the preparation of texts, that is, the work relating to computer-assisted detection including the preparation and formatting of the original text according to the standards of the detection software used, preparation of markers, verification and correction of adapted texts,

vi.  the production of film titles, that is, the photography on neutral backgrounds of opening and closing credits and, as the case may be, of subtitles, to produce the negative of the titles for the dubbed version, to be used for the production of distribution copies, and

vii.  optical transfer, that is, recording of the sound on a negative to be matched with the negative of the picture to produce distribution copies for theatres; and

(b)  in any other case, any of the following services:

i.  a service referred to in any of subparagraphs i to v.2 of paragraph a, or

ii.  the production of video titles for a version in a language other than the original language, that is, the marking and adaptation of the text for subtitles, preparation of the electronic title files, their computer graphic production and their incorporation in the video montage and, in that respect, titles include subtitles, inter-titles, supers and credits and video includes any medium other than celluloid film;

“film dubbing expenditure” of a corporation for a taxation year in respect of the production of a property that is a qualified production means, subject to the second paragraph, the aggregate of 

(a)  the salaries or wages directly attributable to the property that are incurred by the corporation in the year and, where the year is the taxation year in which the corporation files an application for a certificate in respect of the property with the Société de développement des entreprises culturelles, the salaries or wages that are incurred by the corporation in a year preceding the year in which the corporation filed the application for the certificate, to the extent that they relate to eligible dubbing services rendered in Québec before the completion date of the dubbed master copy of the property or after that date within a period that is reasonable to the Minister but that must not extend beyond the date that is 18 months after the end of the corporation’s fiscal period that includes the completion date of the dubbed master copy, and that are paid by the corporation to its employees resident in Québec at any time in the calendar year in which they rendered the eligible dubbing services; and

(b)  the consideration that is incurred by the corporation in the year and, where the year is the taxation year in which the corporation files an application for a certificate in respect of the property with the Société de développement des entreprises culturelles, the portion of the consideration that is incurred by the corporation in a year preceding the year in which the corporation filed the application for the certificate, to the extent that they relate to eligible dubbing services rendered in Québec before the completion date of the dubbed master copy of the property or after that date within a period that is reasonable to the Minister but that must not extend beyond the date that is 18 months after the end of the corporation’s fiscal period that includes the completion date of the dubbed master copy, by an individual resident in Québec at any time in the calendar year in which the individual renders the eligible dubbing services or by a corporation or partnership having an establishment in Québec, other than an employee of the corporation, as part of the production of the property and that is paid by the corporation;

“qualified corporation” for a taxation year means a corporation that, in the year, has an establishment in Québec and carries on therein a business that consists in the rendering of dubbing services and that is a qualified business, but does not include

(a)  (subparagraph repealed);

(b)  a corporation that is exempt from tax for the year under Book VIII; or

(c)  a corporation that would be exempt from tax for the year under section 985 but for section 192;

(d)  (subparagraph repealed);

“qualified film dubbing expenditure” of a corporation for a taxation year in respect of the production of a property that is a qualified production means, where the taxation year begins after 27 March 2018, the amount referred to in paragraph a and, in any other case, the lesser of

(a)  the amount by which

i.  the aggregate of

(1)  the film dubbing expenditure of the corporation for the year in respect of the production of the property,

(2)  any repayment made in the year by the corporation, another person or a partnership, as the case may be, pursuant to a legal obligation, of any assistance that was received by the corporation, the other person or the partnership and that is referred to, in relation to the production of the property, in subparagraph ii or in subparagraph d of the second paragraph in respect of a taxation year for which the corporation is a qualified corporation, and

(3)  the amount by which the aggregate of all amounts each of which is, for a taxation year preceding the year and in respect of the production of the property, the film dubbing expenditure of the corporation or an amount determined under subparagraph 2, exceeds the amount by which the aggregate of all amounts each of which is the qualified film dubbing expenditure of the corporation in respect of the production of the property, for a taxation year preceding the year, exceeds 20/7 of the aggregate of all amounts each of which is tax that the corporation is required to pay under Part III.1.0.1 for a year preceding the year by reason of subparagraph i of subparagraph b of the first paragraph of section 1129.4.0.2, in relation to assistance referred to in subparagraph ii, exceeds

ii.  the aggregate of

(1)  the amount of any government assistance and non-government assistance that the corporation has received, is entitled to receive or may reasonably expect to receive on or before the corporation’s filing-due date for the year, that is attributable to a film dubbing expenditure of the corporation for a taxation year preceding the year in respect of the production of the property, to the extent that the amount has not, under subparagraph i of subparagraph d of the second paragraph, reduced the film dubbing expenditure of the corporation for that preceding year, and

(2)  the amount of any benefit or advantage that a person or partnership has obtained, is entitled to obtain or may reasonably expect to obtain on or before the corporation’s filing-due date for the year, that is attributable to a film dubbing expenditure of the corporation for a taxation year preceding the year in respect of the production of the property, whether in the form of a reimbursement, compensation or guarantee, in the form of proceeds of disposition of a property which exceed the fair market value of the property or in any other form or manner, to the extent that that amount has not, under subparagraph ii of subparagraph d of the second paragraph, reduced the amount of the film dubbing expenditure of the corporation for that preceding year; and

(3)  the amount of any government assistance and non-government assistance that a person or partnership with whom or with which the corporation is not dealing at arm’s length has received, is entitled to receive or may reasonably expect to receive on or before the corporation’s filing-due date for the year, that, for a taxation year preceding the year in respect of the production of the property, is attributable to eligible dubbing services rendered by the person or partnership that are referred to in paragraph b of the definition of “film dubbing expenditure”, to the extent that the amount has not, under subparagraph iii of subparagraph d of the second paragraph, reduced the film dubbing expenditure of the corporation for that preceding year in respect of the property; and

(b)  the amount by which

i.  45% of the consideration paid to the qualified corporation in the year or a preceding taxation year for the performance of the dubbing contract in relation to the production of the property, exceeds

ii.  the amount by which the aggregate of all amounts each of which is the qualified film dubbing expenditure of the corporation in respect of the production of the property, for a taxation year preceding the year, exceeds 20/7 of the aggregate of all amounts each of which is tax that the corporation is required to pay under Part III.1.0.1 for a taxation year preceding the year in respect of the production of the property;

“qualified production” for a taxation year of a corporation means the dubbed version of a production in respect of which the Société de développement des entreprises culturelles certifies, on the certificate it issues to the corporation in respect of the dubbed version, that the dubbed version qualifies for the purposes of this division;

“salary or wages” means the income computed under Chapters I and II of Title II of Book III.

For the purposes of the definition of “film dubbing expenditure” in the first paragraph, the following rules apply:

(a)  for the purposes of paragraph b of that definition, the portion of the consideration paid by the corporation to a person or partnership with whom or with which the corporation was not dealing at arm’s length at the time the person or partnership undertook to provide eligible dubbing services as part of the production of the property shall not exceed the fair market value of the eligible dubbing services rendered in Québec by the person or partnership as part of the production of the property;

(b)  for the purposes of paragraph b of that definition, the portion of the consideration paid by the corporation for the provision of a service referred to in subparagraph vi of paragraph a of the definition of “eligible dubbing service” in the first paragraph is deemed to be equal to 30% of that portion of the consideration, and that portion of the consideration paid by the corporation for the provision of a service referred to in subparagraph vii of that paragraph a is deemed to be equal to 20% of that portion of the consideration;

(c)  for the purposes of paragraph b of that definition, the consideration paid by the corporation for the provision of eligible dubbing services shall not include the portion of that consideration that is the Québec sales tax or the goods and services tax in respect of those services;

(c.1)  (subparagraph repealed);

(d)  the amount of the film dubbing expenditure of a corporation for a taxation year in respect of the production of a property is to be reduced, where applicable, by the aggregate of all amounts each of which is the lesser of the particular amount that corresponds either to the salaries or wages described in paragraph a of that definition or to the consideration or the portion of the consideration described in paragraph b of that definition, that are included in that film dubbing expenditure of the corporation for the year, and the aggregate of

i.  the amount of any government assistance and non-government assistance attributable to the particular amount that the corporation has received, is entitled to receive or may reasonably expect to receive on or before the corporation’s filing-due date for that year,

ii.  the amount of any benefit or advantage attributable to the particular amount that a person or partnership has obtained, is entitled to obtain or may reasonably expect to obtain on or before the corporation’s filing-due date for that year, whether in the form of a reimbursement, compensation or guarantee, in the form of proceeds of disposition of a property which exceed the fair market value of the property, or in any other form or manner, and

iii.  if the particular amount corresponds to the consideration or the portion of the consideration described in paragraph b of that definition, the amount of any government assistance and non-government assistance that a person or partnership with whom or with which the corporation is not dealing at arm’s length has received, is entitled to receive or may reasonably expect to receive on or before the corporation’s filing-due date for the year, that is attributable to eligible dubbing services rendered in Québec by that person or partnership referred to in that paragraph; and

(e)  where, for a taxation year, a corporation is not a qualified corporation, its film dubbing expenditure for the year in respect of the production of a property is deemed to be nil.

For the purposes of subparagraph 2 of subparagraph i of paragraph a of the definition of “qualified film dubbing expenditure” in the first paragraph, an amount of assistance received by a corporation, another person or a partnership, as the case may be, is deemed, in respect of the production of a property that is a qualified production, to be repaid by the corporation, the other person or the partnership in a taxation year, pursuant to a legal obligation, if that amount

(a)  reduced, for the purpose of computing the amount that a corporation is deemed to have paid to the Minister for a taxation year under section 1029.8.36.0.0.2, in respect of the production of the property,

i.  because of subparagraph d of the second paragraph, a film dubbing expenditure of the corporation in respect of the production of the property, or

ii.  because of subparagraph ii of paragraph a of the definition of “qualified film dubbing expenditure” in the first paragraph, a qualified film dubbing expenditure of the corporation in respect of the production of the property;

(b)  was not received by the corporation, the other person or the partnership; and

(c)  ceased in the taxation year to be an amount that the corporation, the other person or the partnership may reasonably expect to receive.

For the purposes of subparagraph i of paragraph b of the definition of “qualified film dubbing expenditure” in the first paragraph, the following rules apply:

(a)  the consideration paid for the performance of a dubbing contract to the qualified corporation by a taxpayer with whom the corporation was not dealing at arm’s length at the time the contract was entered into shall not exceed the fair market value of the services rendered by the qualified corporation for the performance of the dubbing contract; and

(b)  the consideration paid for the performance of a dubbing contract to the qualified corporation shall not include the portion of that consideration that is the Québec sales tax or the goods and services tax in respect of that contract.

For the purposes of the definition of “qualified film dubbing expenditure” in the first paragraph, the following rules apply:

(a)  the definition is to be read as if

i.  “20/7” were replaced wherever it appears by “25/7”, in the case of a production referred to in subparagraph ii of subparagraph a of the first paragraph of section 1029.8.36.0.0.2,

ii.  “20/7” were replaced wherever it appears by “10/3”, in the case of a production referred to in subparagraph a.1 of the first paragraph of section 1029.8.36.0.0.2, and

iii.  “20/7” were replaced wherever it appears by “100/29.1667”, in the case of a production referred to in subparagraph b of the first paragraph of section 1029.8.36.0.0.2; and

(b)  an expenditure that would, but for this subparagraph, be a film dubbing expenditure of a corporation for a particular taxation year in respect of the production of a property, such expenditure being otherwise incurred in the particular year, and that is outstanding at the particular time the corporation first files with the Minister the prescribed form containing prescribed information provided for in the first paragraph of section 1029.8.36.0.0.2 for that particular year, in respect of the production of the property, or, in the absence of such filing with the Minister, on the corporation’s filing-due date for that particular year, is deemed not to be incurred in that particular year and to be incurred in a subsequent taxation year if that expenditure is paid in that subsequent year and after the particular time or after that filing-due date, as the case may be, or in the taxation year that immediately follows that subsequent year and before the time the corporation first files with the Minister that prescribed form for that subsequent year, in respect of the production of the property.

1999, c. 83, s. 194; 2000, c. 5, s. 256; 2001, c. 7, s. 169; 2001, c. 51, s. 228; 2002, c. 9, s. 60; 2003, c. 9, s. 201; 2004, c. 21, s. 305; 2005, c. 1, s. 231; 2006, c. 13, s. 113; 2006, c. 36, s. 127; 2007, c. 12, s. 149; 2010, c. 5, s. 147; 2011, c. 1, s. 63; 2013, c. 10, s. 105; 2015, c. 21, s. 416; 2015, c. 36, s. 106; 2019, c. 14, s. 323.

2015-12-04

1029.8.36.0.0.1. In this division,

“eligible dubbing service” in relation to the production of a property that is a qualified production means

(a)  where the property is a feature film for theatres, any of the following services:

i.  the performance of actors,

ii.  adaptation, that is, translation of dialogue,

iii.  detection, that is, writing of synchronized dialogue, using conventional signs, of all the dialogue and mouth movements of all the characters of the original version,

iv.  calligraphy/grid/typing, that is, recopying the adapted text, taking into account the synchronization indications from detection, to be read by the actors during the recording of the dubbed version,

v.  stage management, that is, directing the actors during the recording,

v.1.  the audition, that is, the test session intended to establish the dubbing cast,

v.2.  the preparation of texts, that is, the work relating to computer-assisted detection including the preparation and formatting of the original text according to the standards of the detection software used, preparation of markers, verification and correction of adapted texts,

vi.  the production of film titles, that is, the photography on neutral backgrounds of opening and closing credits and, as the case may be, of subtitles, to produce the negative of the titles for the dubbed version, to be used for the production of distribution copies, and

vii.  optical transfer, that is, recording of the sound on a negative to be matched with the negative of the picture to produce distribution copies for theatres; and

(b)  in any other case, any of the following services:

i.  a service referred to in any of subparagraphs i to v.2 of paragraph a, or

ii.  the production of video titles for a version in a language other than the original language, that is, the marking and adaptation of the text for subtitles, preparation of the electronic title files, their computer graphic production and their incorporation in the video montage and, in that respect, titles include subtitles, inter-titles, supers and credits and video includes any medium other than celluloid film;

“film dubbing expenditure” of a corporation for a taxation year in respect of the production of a property that is a qualified production means, subject to the second paragraph, the aggregate of the following amounts, to the extent that they are reasonable in the circumstances:

(a)  the salaries or wages directly attributable to the property that are incurred by the corporation in the year and, where the year is the taxation year in which the corporation files an application for a certificate in respect of the property with the Société de développement des entreprises culturelles, the salaries or wages that are incurred by the corporation in a year preceding the year in which the corporation filed the application for the certificate, to the extent that they relate to eligible dubbing services rendered in Québec before the completion date of the dubbed master copy of the property or after that date within a period that is reasonable to the Minister but that must not extend beyond the date that is 18 months after the end of the corporation’s fiscal period that includes the completion date of the dubbed master copy, and that are paid by the corporation to its employees resident in Québec at any time in the calendar year in which they rendered the eligible dubbing services; and

(b)  the consideration that is incurred by the corporation in the year and, where the year is the taxation year in which the corporation files an application for a certificate in respect of the property with the Société de développement des entreprises culturelles, the portion of the consideration that is incurred by the corporation in a year preceding the year in which the corporation filed the application for the certificate, to the extent that they relate to eligible dubbing services rendered in Québec before the completion date of the dubbed master copy of the property or after that date within a period that is reasonable to the Minister but that must not extend beyond the date that is 18 months after the end of the corporation’s fiscal period that includes the completion date of the dubbed master copy, by an individual resident in Québec at any time in the calendar year in which the individual renders the eligible dubbing services or by a corporation or partnership having an establishment in Québec, other than an employee of the corporation, as part of the production of the property and that is paid by the corporation;

“qualified corporation” for a taxation year means a corporation that, in the year, has an establishment in Québec and carries on therein a business that consists in the rendering of dubbing services and that is a qualified business, but does not include

(a)  (subparagraph repealed);

(b)  a corporation that is exempt from tax for the year under Book VIII; or

(c)  a corporation that would be exempt from tax for the year under section 985 but for section 192;

(d)  (subparagraph repealed);

“qualified film dubbing expenditure” of a corporation for a taxation year in respect of the production of a property that is a qualified production means the lesser of

(a)  the amount by which

i.  the aggregate of

(1)  the film dubbing expenditure of the corporation for the year in respect of the production of the property,

(2)  any repayment made in the year by the corporation, another person or a partnership, as the case may be, pursuant to a legal obligation, of any assistance that was received by the corporation, the other person or the partnership and that is referred to, in relation to the production of the property, in subparagraph ii or in subparagraph d of the second paragraph in respect of a taxation year for which the corporation is a qualified corporation, and

(3)  the amount by which the aggregate of all amounts each of which is, for a taxation year preceding the year and in respect of the production of the property, the film dubbing expenditure of the corporation or an amount determined under subparagraph 2, exceeds the amount by which the aggregate of all amounts each of which is the qualified film dubbing expenditure of the corporation in respect of the production of the property, for a taxation year preceding the year, exceeds 20/7 of the aggregate of all amounts each of which is tax that the corporation is required to pay under Part III.1.0.1 for a year preceding the year by reason of subparagraph i of subparagraph b of the first paragraph of section 1129.4.0.2, in relation to assistance referred to in subparagraph ii, exceeds

ii.  the aggregate of

(1)  the amount of any government assistance and non-government assistance that the corporation has received, is entitled to receive or may reasonably expect to receive on or before the corporation’s filing-due date for the year, that is attributable to a film dubbing expenditure of the corporation for a taxation year preceding the year in respect of the production of the property, to the extent that the amount has not, under subparagraph i of subparagraph d of the second paragraph, reduced the film dubbing expenditure of the corporation for that preceding year, and

(2)  the amount of any benefit or advantage that a person or partnership has obtained, is entitled to obtain or may reasonably expect to obtain on or before the corporation’s filing-due date for the year, that is attributable to a film dubbing expenditure of the corporation for a taxation year preceding the year in respect of the production of the property, whether in the form of a reimbursement, compensation or guarantee, in the form of proceeds of disposition of a property which exceed the fair market value of the property or in any other form or manner, to the extent that that amount has not, under subparagraph ii of subparagraph d of the second paragraph, reduced the amount of the film dubbing expenditure of the corporation for that preceding year; and

(3)  the amount of any government assistance and non-government assistance that a person or partnership with whom or with which the corporation is not dealing at arm’s length has received, is entitled to receive or may reasonably expect to receive on or before the corporation’s filing-due date for the year, that, for a taxation year preceding the year in respect of the production of the property, is attributable to eligible dubbing services rendered by the person or partnership that are referred to in paragraph b of the definition of “film dubbing expenditure”, to the extent that the amount has not, under subparagraph iii of subparagraph d of the second paragraph, reduced the film dubbing expenditure of the corporation for that preceding year in respect of the property; and

(b)  the amount by which

i.  45% of the consideration paid to the qualified corporation in the year or a preceding taxation year for the performance of the dubbing contract in relation to the production of the property, exceeds

ii.  the amount by which the aggregate of all amounts each of which is the qualified film dubbing expenditure of the corporation in respect of the production of the property, for a taxation year preceding the year, exceeds 20/7 of the aggregate of all amounts each of which is tax that the corporation is required to pay under Part III.1.0.1 for a taxation year preceding the year in respect of the production of the property;

“qualified production” for a taxation year of a corporation means the dubbed version of a production in respect of which the Société de développement des entreprises culturelles certifies, on the certificate it issues to the corporation in respect of the dubbed version, that the dubbed version qualifies for the purposes of this division;

“salary or wages” means the income computed under Chapters I and II of Title II of Book III.

For the purposes of the definition of “film dubbing expenditure” in the first paragraph, the following rules apply:

(a)  for the purposes of paragraph b of that definition, the portion of the consideration paid by the corporation to a person or partnership with whom or with which the corporation was not dealing at arm’s length at the time the person or partnership undertook to provide eligible dubbing services as part of the production of the property shall not exceed the fair market value of the eligible dubbing services rendered in Québec by the person or partnership as part of the production of the property;

(b)  for the purposes of paragraph b of that definition, the portion of the consideration paid by the corporation for the provision of a service referred to in subparagraph vi of paragraph a of the definition of “eligible dubbing service” in the first paragraph is deemed to be equal to 30% of that portion of the consideration, and that portion of the consideration paid by the corporation for the provision of a service referred to in subparagraph vii of that paragraph a is deemed to be equal to 20% of that portion of the consideration;

(c)  for the purposes of paragraph b of that definition, the consideration paid by the corporation for the provision of eligible dubbing services shall not include the portion of that consideration that is the Québec sales tax or the goods and services tax in respect of those services;

(c.1)  (subparagraph repealed);

(d)  the amount of the film dubbing expenditure of a corporation for a taxation year in respect of the production of a property is to be reduced, where applicable, by the aggregate of all amounts each of which is the lesser of the particular amount that corresponds either to the salaries or wages described in paragraph a of that definition or to the consideration or the portion of the consideration described in paragraph b of that definition, that are included in that film dubbing expenditure of the corporation for the year, and the aggregate of

i.  the amount of any government assistance and non-government assistance attributable to the particular amount that the corporation has received, is entitled to receive or may reasonably expect to receive on or before the corporation’s filing-due date for that year,

ii.  the amount of any benefit or advantage attributable to the particular amount that a person or partnership has obtained, is entitled to obtain or may reasonably expect to obtain on or before the corporation’s filing-due date for that year, whether in the form of a reimbursement, compensation or guarantee, in the form of proceeds of disposition of a property which exceed the fair market value of the property, or in any other form or manner, and

iii.  if the particular amount corresponds to the consideration or the portion of the consideration described in paragraph b of that definition, the amount of any government assistance and non-government assistance that a person or partnership with whom or with which the corporation is not dealing at arm’s length has received, is entitled to receive or may reasonably expect to receive on or before the corporation’s filing-due date for the year, that is attributable to eligible dubbing services rendered in Québec by that person or partnership referred to in that paragraph; and

(e)  where, for a taxation year, a corporation is not a qualified corporation, its film dubbing expenditure for the year in respect of the production of a property is deemed to be nil.

For the purposes of subparagraph 2 of subparagraph i of paragraph a of the definition of “qualified film dubbing expenditure” in the first paragraph, an amount of assistance received by a corporation, another person or a partnership, as the case may be, is deemed, in respect of the production of a property that is a qualified production, to be repaid by the corporation, the other person or the partnership in a taxation year, pursuant to a legal obligation, if that amount

(a)  reduced, for the purpose of computing the amount that a corporation is deemed to have paid to the Minister for a taxation year under section 1029.8.36.0.0.2, in respect of the production of the property,

i.  because of subparagraph d of the second paragraph, a film dubbing expenditure of the corporation in respect of the production of the property, or

ii.  because of subparagraph ii of paragraph a of the definition of “qualified film dubbing expenditure” in the first paragraph, a qualified film dubbing expenditure of the corporation in respect of the production of the property;

(b)  was not received by the corporation, the other person or the partnership; and

(c)  ceased in the taxation year to be an amount that the corporation, the other person or the partnership may reasonably expect to receive.

For the purposes of subparagraph i of paragraph b of the definition of “qualified film dubbing expenditure” in the first paragraph, the following rules apply:

(a)  the consideration paid for the performance of a dubbing contract to the qualified corporation by a taxpayer with whom the corporation was not dealing at arm’s length at the time the contract was entered into shall not exceed the fair market value of the services rendered by the qualified corporation for the performance of the dubbing contract; and

(b)  the consideration paid for the performance of a dubbing contract to the qualified corporation shall not include the portion of that consideration that is the Québec sales tax or the goods and services tax in respect of that contract.

For the purposes of the definition of “qualified film dubbing expenditure” in the first paragraph, the following rules apply:

(a)  the definition is to be read as if

i.  “20/7” were replaced wherever it appears by “25/7”, in the case of a production referred to in subparagraph ii of subparagraph a of the first paragraph of section 1029.8.36.0.0.2,

ii.  “20/7” were replaced wherever it appears by “10/3”, in the case of a production referred to in subparagraph a.1 of the first paragraph of section 1029.8.36.0.0.2, and

iii.  “20/7” were replaced wherever it appears by “100/29.1667”, in the case of a production referred to in subparagraph b of the first paragraph of section 1029.8.36.0.0.2; and

(b)  no expenditure may be taken into consideration in computing the qualified film dubbing expenditure of a corporation for a taxation year in respect of the production of a property, unless it is paid at the time the corporation first files with the Minister the prescribed form containing prescribed information provided for in the first paragraph of section 1029.8.36.0.0.2 for that taxation year.

1999, c. 83, s. 194; 2000, c. 5, s. 256; 2001, c. 7, s. 169; 2001, c. 51, s. 228; 2002, c. 9, s. 60; 2003, c. 9, s. 201; 2004, c. 21, s. 305; 2005, c. 1, s. 231; 2006, c. 13, s. 113; 2006, c. 36, s. 127; 2007, c. 12, s. 149; 2010, c. 5, s. 147; 2011, c. 1, s. 63; 2013, c. 10, s. 105; 2015, c. 21, s. 416; 2015, c. 36, s. 106.

2015-10-21

1029.8.36.0.0.1. In this division,

“eligible dubbing service” in relation to the production of a property that is a qualified production means

(a)  where the property is a feature film for theatres, any of the following services:

i.  the performance of actors,

ii.  adaptation, that is, translation of dialogue,

iii.  detection, that is, writing of synchronized dialogue, using conventional signs, of all the dialogue and mouth movements of all the characters of the original version,

iv.  calligraphy/grid/typing, that is, recopying the adapted text, taking into account the synchronization indications from detection, to be read by the actors during the recording of the dubbed version,

v.  stage management, that is, directing the actors during the recording,

v.1.  the audition, that is, the test session intended to establish the dubbing cast,

v.2.  the preparation of texts, that is, the work relating to computer-assisted detection including the preparation and formatting of the original text according to the standards of the detection software used, preparation of markers, verification and correction of adapted texts,

vi.  the production of film titles, that is, the photography on neutral backgrounds of opening and closing credits and, as the case may be, of subtitles, to produce the negative of the titles for the dubbed version, to be used for the production of distribution copies, and

vii.  optical transfer, that is, recording of the sound on a negative to be matched with the negative of the picture to produce distribution copies for theatres; and

(b)  in any other case, any of the following services:

i.  a service referred to in any of subparagraphs i to v.2 of paragraph a, or

ii.  the production of video titles for a version in a language other than the original language, that is, the marking and adaptation of the text for subtitles, preparation of the electronic title files, their computer graphic production and their incorporation in the video montage and, in that respect, titles include subtitles, inter-titles, supers and credits and video includes any medium other than celluloid film;

“film dubbing expenditure” of a corporation for a taxation year in respect of the production of a property that is a qualified production means, subject to the second paragraph, the aggregate of the following amounts, to the extent that they are reasonable in the circumstances:

(a)  the salaries or wages directly attributable to the property that are incurred by the corporation in the year and, where the year is the taxation year in which the corporation files an application for a certificate in respect of the property with the Société de développement des entreprises culturelles, the salaries or wages that are incurred by the corporation in a year preceding the year in which the corporation filed the application for the certificate, to the extent that they relate to eligible dubbing services rendered in Québec before the completion date of the dubbed master copy of the property or after that date within a period that is reasonable to the Minister but that must not extend beyond the date that is 18 months after the end of the corporation’s fiscal period that includes the completion date of the dubbed master copy, and that are paid by the corporation to its employees resident in Québec at any time in the calendar year in which they rendered the eligible dubbing services; and

(b)  the consideration that is incurred by the corporation in the year and, where the year is the taxation year in which the corporation files an application for a certificate in respect of the property with the Société de développement des entreprises culturelles, the portion of the consideration that is incurred by the corporation in a year preceding the year in which the corporation filed the application for the certificate, to the extent that they relate to eligible dubbing services rendered in Québec before the completion date of the dubbed master copy of the property or after that date within a period that is reasonable to the Minister but that must not extend beyond the date that is 18 months after the end of the corporation’s fiscal period that includes the completion date of the dubbed master copy, by an individual resident in Québec at any time in the calendar year in which the individual renders the eligible dubbing services or by a corporation or partnership having an establishment in Québec, other than an employee of the corporation, as part of the production of the property and that is paid by the corporation;

“qualified corporation” for a taxation year means a corporation that, in the year, has an establishment in Québec and carries on therein a business that consists in the rendering of dubbing services and that is a qualified business, but does not include

(a)  (subparagraph repealed);

(b)  a corporation that is exempt from tax for the year under Book VIII; or

(c)  a corporation that would be exempt from tax for the year under section 985 but for section 192;

(d)  (subparagraph repealed);

“qualified film dubbing expenditure” of a corporation for a taxation year in respect of the production of a property that is a qualified production means the lesser of

(a)  the amount by which

i.  the aggregate of

(1)  the film dubbing expenditure of the corporation for the year in respect of the production of the property,

(2)  any repayment made in the year by the corporation, another person or a partnership, as the case may be, pursuant to a legal obligation, of any assistance that was received by the corporation, the other person or the partnership and that is referred to, in relation to the production of the property, in subparagraph ii or in subparagraph d of the second paragraph in respect of a taxation year for which the corporation is a qualified corporation, and

(3)  the amount by which the aggregate of all amounts each of which is, for a taxation year preceding the year and in respect of the production of the property, the film dubbing expenditure of the corporation or an amount determined under subparagraph 2, exceeds the amount by which the aggregate of all amounts each of which is the qualified film dubbing expenditure of the corporation in respect of the production of the property, for a taxation year preceding the year, exceeds 25/7 of the aggregate of all amounts each of which is tax that the corporation is required to pay under Part III.1.0.1 for a year preceding the year by reason of subparagraph i of subparagraph b of the first paragraph of section 1129.4.0.2, in relation to assistance referred to in subparagraph ii, exceeds

ii.  the aggregate of

(1)  the amount of any government assistance and non-government assistance that the corporation has received, is entitled to receive or may reasonably expect to receive on or before the corporation’s filing-due date for the year, that is attributable to a film dubbing expenditure of the corporation for a taxation year preceding the year in respect of the production of the property, to the extent that the amount has not, under subparagraph i of subparagraph d of the second paragraph, reduced the film dubbing expenditure of the corporation for that preceding year, and

(2)  the amount of any benefit or advantage that a person or partnership has obtained, is entitled to obtain or may reasonably expect to obtain on or before the corporation’s filing-due date for the year, that is attributable to a film dubbing expenditure of the corporation for a taxation year preceding the year in respect of the production of the property, whether in the form of a reimbursement, compensation or guarantee, in the form of proceeds of disposition of a property which exceed the fair market value of the property or in any other form or manner, to the extent that that amount has not, under subparagraph ii of subparagraph d of the second paragraph, reduced the amount of the film dubbing expenditure of the corporation for that preceding year; and

(3)  the amount of any government assistance and non-government assistance that a person or partnership with whom or with which the corporation is not dealing at arm’s length has received, is entitled to receive or may reasonably expect to receive on or before the corporation’s filing-due date for the year, that, for a taxation year preceding the year in respect of the production of the property, is attributable to eligible dubbing services rendered by the person or partnership that are referred to in paragraph b of the definition of “film dubbing expenditure”, to the extent that the amount has not, under subparagraph iii of subparagraph d of the second paragraph, reduced the film dubbing expenditure of the corporation for that preceding year in respect of the property; and

(b)  the amount by which

i.  45% of the consideration paid to the qualified corporation in the year or a preceding taxation year for the performance of the dubbing contract in relation to the production of the property, exceeds

ii.  the amount by which the aggregate of all amounts each of which is the qualified film dubbing expenditure of the corporation in respect of the production of the property, for a taxation year preceding the year, exceeds 25/7 of the aggregate of all amounts each of which is tax that the corporation is required to pay under Part III.1.0.1 for a taxation year preceding the year in respect of the production of the property;

“qualified production” for a taxation year of a corporation means the dubbed version of a production in respect of which the Société de développement des entreprises culturelles certifies, on the certificate it issues to the corporation in respect of the dubbed version, that the dubbed version qualifies for the purposes of this division;

“salary or wages” means the income computed under Chapters I and II of Title II of Book III.

For the purposes of the definition of “film dubbing expenditure” in the first paragraph, the following rules apply:

(a)  for the purposes of paragraph b of that definition, the portion of the consideration paid by the corporation to a person or partnership with whom or with which the corporation was not dealing at arm’s length at the time the person or partnership undertook to provide eligible dubbing services as part of the production of the property shall not exceed the fair market value of the eligible dubbing services rendered in Québec by the person or partnership as part of the production of the property;

(b)  for the purposes of paragraph b of that definition, the portion of the consideration paid by the corporation for the provision of a service referred to in subparagraph vi of paragraph a of the definition of “eligible dubbing service” in the first paragraph is deemed to be equal to 30% of that portion of the consideration, and that portion of the consideration paid by the corporation for the provision of a service referred to in subparagraph vii of that paragraph a is deemed to be equal to 20% of that portion of the consideration;

(c)  for the purposes of paragraph b of that definition, the consideration paid by the corporation for the provision of eligible dubbing services shall not include the portion of that consideration that is the Québec sales tax or the goods and services tax in respect of those services;

(c.1)  (subparagraph repealed);

(d)  the amount of the film dubbing expenditure of a corporation for a taxation year in respect of the production of a property is to be reduced, where applicable, by the aggregate of all amounts each of which is the lesser of the particular amount that corresponds either to the salaries or wages described in paragraph a of that definition or to the consideration or the portion of the consideration described in paragraph b of that definition, that are included in that film dubbing expenditure of the corporation for the year, and the aggregate of

i.  the amount of any government assistance and non-government assistance attributable to the particular amount that the corporation has received, is entitled to receive or may reasonably expect to receive on or before the corporation’s filing-due date for that year,

ii.  the amount of any benefit or advantage attributable to the particular amount that a person or partnership has obtained, is entitled to obtain or may reasonably expect to obtain on or before the corporation’s filing-due date for that year, whether in the form of a reimbursement, compensation or guarantee, in the form of proceeds of disposition of a property which exceed the fair market value of the property, or in any other form or manner, and

iii.  if the particular amount corresponds to the consideration or the portion of the consideration described in paragraph b of that definition, the amount of any government assistance and non-government assistance that a person or partnership with whom or with which the corporation is not dealing at arm’s length has received, is entitled to receive or may reasonably expect to receive on or before the corporation’s filing-due date for the year, that is attributable to eligible dubbing services rendered in Québec by that person or partnership referred to in that paragraph; and

(e)  where, for a taxation year, a corporation is not a qualified corporation, its film dubbing expenditure for the year in respect of the production of a property is deemed to be nil.

For the purposes of subparagraph 2 of subparagraph i of paragraph a of the definition of “qualified film dubbing expenditure” in the first paragraph, an amount of assistance received by a corporation, another person or a partnership, as the case may be, is deemed, in respect of the production of a property that is a qualified production, to be repaid by the corporation, the other person or the partnership in a taxation year, pursuant to a legal obligation, if that amount

(a)  reduced, for the purpose of computing the amount that a corporation is deemed to have paid to the Minister for a taxation year under section 1029.8.36.0.0.2, in respect of the production of the property,

i.  because of subparagraph d of the second paragraph, a film dubbing expenditure of the corporation in respect of the production of the property, or

ii.  because of subparagraph ii of paragraph a of the definition of “qualified film dubbing expenditure” in the first paragraph, a qualified film dubbing expenditure of the corporation in respect of the production of the property;

(b)  was not received by the corporation, the other person or the partnership; and

(c)  ceased in the taxation year to be an amount that the corporation, the other person or the partnership may reasonably expect to receive.

For the purposes of subparagraph i of paragraph b of the definition of “qualified film dubbing expenditure” in the first paragraph, the following rules apply:

(a)  the consideration paid for the performance of a dubbing contract to the qualified corporation by a taxpayer with whom the corporation was not dealing at arm’s length at the time the contract was entered into shall not exceed the fair market value of the services rendered by the qualified corporation for the performance of the dubbing contract; and

(b)  the consideration paid for the performance of a dubbing contract to the qualified corporation shall not include the portion of that consideration that is the Québec sales tax or the goods and services tax in respect of that contract.

For the purposes of the definition of “qualified film dubbing expenditure” in the first paragraph, the following rules apply:

(a)  the definition is to be read as if

i.  “25/7” were replaced wherever it appears by “20/7”, in the case of a production referred to in subparagraph i of subparagraph a of the first paragraph of section 1029.8.36.0.0.2,

ii.  “25/7” were replaced wherever it appears by “10/3”, in the case of a production referred to in subparagraph a.1 of the first paragraph of section 1029.8.36.0.0.2, and

iii.  “25/7” were replaced wherever it appears by “100/29.1667”, in the case of a production referred to in subparagraph b of the first paragraph of section 1029.8.36.0.0.2; and

(b)  no expenditure may be taken into consideration in computing the qualified film dubbing expenditure of a corporation for a taxation year in respect of the production of a property, unless it is paid at the time the corporation first files with the Minister the prescribed form containing prescribed information provided for in the first paragraph of section 1029.8.36.0.0.2 for that taxation year.

1999, c. 83, s. 194; 2000, c. 5, s. 256; 2001, c. 7, s. 169; 2001, c. 51, s. 228; 2002, c. 9, s. 60; 2003, c. 9, s. 201; 2004, c. 21, s. 305; 2005, c. 1, s. 231; 2006, c. 13, s. 113; 2006, c. 36, s. 127; 2007, c. 12, s. 149; 2010, c. 5, s. 147; 2011, c. 1, s. 63; 2013, c. 10, s. 105; 2015, c. 21, s. 416.

2013-06-05

1029.8.36.0.0.1. In this division,

“eligible dubbing service” in relation to the production of a property that is a qualified production means

(a)  where the property is a feature film for theatres, any of the following services:

i.  the performance of actors,

ii.  adaptation, that is, translation of dialogue,

iii.  detection, that is, writing of synchronized dialogue, using conventional signs, of all the dialogue and mouth movements of all the characters of the original version,

iv.  calligraphy/grid/typing, that is, recopying the adapted text, taking into account the synchronization indications from detection, to be read by the actors during the recording of the dubbed version,

v.  stage management, that is, directing the actors during the recording,

v.1.  the audition, that is, the test session intended to establish the dubbing cast,

v.2.  the preparation of texts, that is, the work relating to computer-assisted detection including the preparation and formatting of the original text according to the standards of the detection software used, preparation of markers, verification and correction of adapted texts,

vi.  the production of film titles, that is, the photography on neutral backgrounds of opening and closing credits and, as the case may be, of subtitles, to produce the negative of the titles for the dubbed version, to be used for the production of distribution copies, and

vii.  optical transfer, that is, recording of the sound on a negative to be matched with the negative of the picture to produce distribution copies for theatres; and

(b)  in any other case, any of the following services:

i.  a service referred to in any of subparagraphs i to v.2 of paragraph a, or

ii.  the production of video titles for a version in a language other than the original language, that is, the marking and adaptation of the text for subtitles, preparation of the electronic title files, their computer graphic production and their incorporation in the video montage and, in that respect, titles include subtitles, inter-titles, supers and credits and video includes any medium other than celluloid film;

“film dubbing expenditure” of a corporation for a taxation year in respect of the production of a property that is a qualified production means, subject to the second paragraph, the aggregate of the following amounts, to the extent that they are reasonable in the circumstances:

(a)  the salaries or wages directly attributable to the property that are incurred by the corporation in the year and, where the year is the taxation year in which the corporation files an application for a certificate in respect of the property with the Société de développement des entreprises culturelles, the salaries or wages that are incurred by the corporation in a year preceding the year in which the corporation filed the application for the certificate, to the extent that they relate to eligible dubbing services rendered in Québec before the completion date of the dubbed master copy of the property or after that date within a period that is reasonable to the Minister but that must not extend beyond the date that is 18 months after the end of the corporation’s fiscal period that includes the completion date of the dubbed master copy, and that are paid by the corporation to its employees resident in Québec at any time in the calendar year in which they rendered the eligible dubbing services; and

(b)  the consideration that is incurred by the corporation in the year and, where the year is the taxation year in which the corporation files an application for a certificate in respect of the property with the Société de développement des entreprises culturelles, the portion of the consideration that is incurred by the corporation in a year preceding the year in which the corporation filed the application for the certificate, to the extent that they relate to eligible dubbing services rendered in Québec before the completion date of the dubbed master copy of the property or after that date within a period that is reasonable to the Minister but that must not extend beyond the date that is 18 months after the end of the corporation’s fiscal period that includes the completion date of the dubbed master copy, by an individual resident in Québec at any time in the calendar year in which the individual renders the eligible dubbing services or by a corporation or partnership having an establishment in Québec, other than an employee of the corporation, as part of the production of the property and that is paid by the corporation;

“qualified corporation” for a taxation year means a corporation that, in the year, has an establishment in Québec and carries on therein a business that consists in the rendering of dubbing services and that is a qualified business, but does not include

(a)  (subparagraph repealed);

(b)  a corporation that is exempt from tax for the year under Book VIII; or

(c)  a corporation that would be exempt from tax for the year under section 985 but for section 192;

(d)  (subparagraph repealed);

“qualified film dubbing expenditure” of a corporation for a taxation year in respect of the production of a property that is a qualified production means the lesser of

(a)  the amount by which

i.  the aggregate of

(1)  the film dubbing expenditure of the corporation for the year in respect of the production of the property,

(2)  any repayment made in the year by the corporation, another person or a partnership, as the case may be, pursuant to a legal obligation, of any assistance that was received by the corporation, the other person or the partnership and that is referred to, in relation to the production of the property, in subparagraph ii or in subparagraph d of the second paragraph in respect of a taxation year for which the corporation is a qualified corporation, and

(3)  the amount by which the aggregate of all amounts each of which is, for a taxation year preceding the year and in respect of the production of the property, the film dubbing expenditure of the corporation or an amount determined under subparagraph 2, exceeds the amount by which the aggregate of all amounts each of which is the qualified film dubbing expenditure of the corporation in respect of the production of the property, for a taxation year preceding the year, exceeds 285.71% of the aggregate of all amounts each of which is tax that the corporation is required to pay under Part III.1.0.1 for a year preceding the year by reason of subparagraph i of subparagraph b of the first paragraph of section 1129.4.0.2, in relation to assistance referred to in subparagraph ii, exceeds

ii.  the aggregate of

(1)  the amount of any government assistance and non-government assistance that the corporation has received, is entitled to receive or may reasonably expect to receive on or before the corporation’s filing-due date for the year, that is attributable to a film dubbing expenditure of the corporation for a taxation year preceding the year in respect of the production of the property, to the extent that the amount has not, under subparagraph i of subparagraph d of the second paragraph, reduced the film dubbing expenditure of the corporation for that preceding year, and

(2)  the amount of any benefit or advantage that a person or partnership has obtained, is entitled to obtain or may reasonably expect to obtain on or before the corporation’s filing-due date for the year, that is attributable to a film dubbing expenditure of the corporation for a taxation year preceding the year in respect of the production of the property, whether in the form of a reimbursement, compensation or guarantee, in the form of proceeds of disposition of a property which exceed the fair market value of the property or in any other form or manner, to the extent that that amount has not, under subparagraph ii of subparagraph d of the second paragraph, reduced the amount of the film dubbing expenditure of the corporation for that preceding year; and

(3)  the amount of any government assistance and non-government assistance that a person or partnership with whom or with which the corporation is not dealing at arm’s length has received, is entitled to receive or may reasonably expect to receive on or before the corporation’s filing-due date for the year, that, for a taxation year preceding the year in respect of the production of the property, is attributable to eligible dubbing services rendered by the person or partnership that are referred to in paragraph b of the definition of “film dubbing expenditure”, to the extent that the amount has not, under subparagraph iii of subparagraph d of the second paragraph, reduced the film dubbing expenditure of the corporation for that preceding year in respect of the property; and

(b)  the amount by which

i.  45% of the consideration paid to the qualified corporation in the year or a preceding taxation year for the performance of the dubbing contract in relation to the production of the property, exceeds

ii.  the amount by which the aggregate of all amounts each of which is the qualified film dubbing expenditure of the corporation in respect of the production of the property, for a taxation year preceding the year, exceeds 285.71% of the aggregate of all amounts each of which is tax that the corporation is required to pay under Part III.1.0.1 for a taxation year preceding the year in respect of the production of the property;

“qualified production” for a taxation year of a corporation means the dubbed version of a production in respect of which the Société de développement des entreprises culturelles certifies, on the certificate it issues to the corporation in respect of the dubbed version, that the dubbed version qualifies for the purposes of this division;

“salary or wages” means the income computed under Chapters I and II of Title II of Book III.

For the purposes of the definition of “film dubbing expenditure” in the first paragraph, the following rules apply:

(a)  for the purposes of paragraph b of that definition, the portion of the consideration paid by the corporation to a person or partnership with whom or with which the corporation was not dealing at arm’s length at the time the person or partnership undertook to provide eligible dubbing services as part of the production of the property shall not exceed the fair market value of the eligible dubbing services rendered in Québec by the person or partnership as part of the production of the property;

(b)  for the purposes of paragraph b of that definition, the portion of the consideration paid by the corporation for the provision of a service referred to in subparagraph vi of paragraph a of the definition of “eligible dubbing service” in the first paragraph is deemed to be equal to 30% of that portion of the consideration, and that portion of the consideration paid by the corporation for the provision of a service referred to in subparagraph vii of that paragraph a is deemed to be equal to 20% of that portion of the consideration;

(c)  for the purposes of paragraph b of that definition, the consideration paid by the corporation for the provision of eligible dubbing services shall not include the portion of that consideration that is the Québec sales tax or the goods and services tax in respect of those services;

(c.1)  (subparagraph repealed);

(d)  the amount of the film dubbing expenditure of a corporation for a taxation year in respect of the production of a property is to be reduced, where applicable, by the aggregate of all amounts each of which is the lesser of the particular amount that corresponds either to the salaries or wages described in paragraph a of that definition or to the consideration or the portion of the consideration described in paragraph b of that definition, that are included in that film dubbing expenditure of the corporation for the year, and the aggregate of

i.  the amount of any government assistance and non-government assistance attributable to the particular amount that the corporation has received, is entitled to receive or may reasonably expect to receive on or before the corporation’s filing-due date for that year,

ii.  the amount of any benefit or advantage attributable to the particular amount that a person or partnership has obtained, is entitled to obtain or may reasonably expect to obtain on or before the corporation’s filing-due date for that year, whether in the form of a reimbursement, compensation or guarantee, in the form of proceeds of disposition of a property which exceed the fair market value of the property, or in any other form or manner, and

iii.  if the particular amount corresponds to the consideration or the portion of the consideration described in paragraph b of that definition, the amount of any government assistance and non-government assistance that a person or partnership with whom or with which the corporation is not dealing at arm’s length has received, is entitled to receive or may reasonably expect to receive on or before the corporation’s filing-due date for the year, that is attributable to eligible dubbing services rendered in Québec by that person or partnership referred to in that paragraph; and

(e)  where, for a taxation year, a corporation is not a qualified corporation, its film dubbing expenditure for the year in respect of the production of a property is deemed to be nil.

For the purposes of subparagraph 2 of subparagraph i of paragraph a of the definition of “qualified film dubbing expenditure” in the first paragraph, an amount of assistance received by a corporation, another person or a partnership, as the case may be, is deemed, in respect of the production of a property that is a qualified production, to be repaid by the corporation, the other person or the partnership in a taxation year, pursuant to a legal obligation, if that amount

(a)  reduced, for the purpose of computing the amount that a corporation is deemed to have paid to the Minister for a taxation year under section 1029.8.36.0.0.2, in respect of the production of the property,

i.  because of subparagraph d of the second paragraph, a film dubbing expenditure of the corporation in respect of the production of the property, or

ii.  because of subparagraph ii of paragraph a of the definition of “qualified film dubbing expenditure” in the first paragraph, a qualified film dubbing expenditure of the corporation in respect of the production of the property;

(b)  was not received by the corporation, the other person or the partnership; and

(c)  ceased in the taxation year to be an amount that the corporation, the other person or the partnership may reasonably expect to receive.

For the purposes of subparagraph i of paragraph b of the definition of “qualified film dubbing expenditure” in the first paragraph, the following rules apply:

(a)  the consideration paid for the performance of a dubbing contract to the qualified corporation by a taxpayer with whom the corporation was not dealing at arm’s length at the time the contract was entered into shall not exceed the fair market value of the services rendered by the qualified corporation for the performance of the dubbing contract; and

(b)  the consideration paid for the performance of a dubbing contract to the qualified corporation shall not include the portion of that consideration that is the Québec sales tax or the goods and services tax in respect of that contract.

For the purposes of the definition of “qualified film dubbing expenditure” in the first paragraph, the following rules apply:

(a)  the definition is to be read as if

i.  “285.71%” were replaced wherever it appears by “333 1/3%”, in the case of a production referred to in subparagraph a.1 of the first paragraph of section 1029.8.36.0.0.2, and

ii.  “285.71%” were replaced wherever it appears by “342.85%”, in the case of a production referred to in subparagraph b of the first paragraph of section 1029.8.36.0.0.2, and

(b)  no expenditure may be taken into consideration in computing the qualified film dubbing expenditure of a corporation for a taxation year in respect of the production of a property, unless it is paid at the time the corporation first files with the Minister the prescribed form containing prescribed information provided for in the first paragraph of section 1029.8.36.0.0.2 for that taxation year.

1999, c. 83, s. 194; 2000, c. 5, s. 256; 2001, c. 7, s. 169; 2001, c. 51, s. 228; 2002, c. 9, s. 60; 2003, c. 9, s. 201; 2004, c. 21, s. 305; 2005, c. 1, s. 231; 2006, c. 13, s. 113; 2006, c. 36, s. 127; 2007, c. 12, s. 149; 2010, c. 5, s. 147; 2011, c. 1, s. 63; 2013, c. 10, s. 105.

2011-02-17

1029.8.36.0.0.1. In this division,

“eligible dubbing service” in relation to the production of a property that is a qualified production means

(a)  where the property is a feature film for theatres, any of the following services:

i.  the performance of actors,

ii.  adaptation, that is, translation of dialogue,

iii.  detection, that is, writing of synchronized dialogue, using conventional signs, of all the dialogue and mouth movements of all the characters of the original version,

iv.  calligraphy/grid/typing, that is, recopying the adapted text, taking into account the synchronization indications from detection, to be read by the actors during the recording of the dubbed version,

v.  stage management, that is, directing the actors during the recording,

v.1.  the audition, that is, the test session intended to establish the dubbing cast,

v.2.  the preparation of texts, that is, the work relating to computer-assisted detection including the preparation and formatting of the original text according to the standards of the detection software used, preparation of markers, verification and correction of adapted texts,

vi.  the production of film titles, that is, the photography on neutral backgrounds of opening and closing credits and, as the case may be, of subtitles, to produce the negative of the titles for the dubbed version, to be used for the production of distribution copies, and

vii.  optical transfer, that is, recording of the sound on a negative to be matched with the negative of the picture to produce distribution copies for theatres; and

(b)  in any other case, any of the following services:

i.  a service referred to in any of subparagraphs i to v.2 of paragraph a, or

ii.  the production of video titles for a version in a language other than the original language, that is, the marking and adaptation of the text for subtitles, preparation of the electronic title files, their computer graphic production and their incorporation in the video montage and, in that respect, titles include subtitles, inter-titles, supers and credits and video includes any medium other than celluloid film;

“film dubbing expenditure” of a corporation for a taxation year in respect of the production of a property that is a qualified production means, subject to the second paragraph, the aggregate of the following amounts, to the extent that they are reasonable in the circumstances:

(a)  the salaries or wages directly attributable to the property that are incurred by the corporation in the year and, where the year is the taxation year in which the corporation files an application for a certificate in respect of the property with the Société de développement des entreprises culturelles, the salaries or wages that are incurred by the corporation in a year preceding the year in which the corporation filed the application for the certificate, to the extent that they relate to eligible dubbing services rendered in Québec before the completion date of the dubbed master copy of the property or after that date within a period that is reasonable to the Minister but that must not extend beyond the date that is 18 months after the end of the corporation’s fiscal period that includes the completion date of the dubbed master copy, and that are paid by the corporation to its employees resident in Québec at any time in the calendar year in which they rendered the eligible dubbing services; and

(b)  the consideration that is incurred by the corporation in the year and, where the year is the taxation year in which the corporation files an application for a certificate in respect of the property with the Société de développement des entreprises culturelles, the portion of the consideration that is incurred by the corporation in a year preceding the year in which the corporation filed the application for the certificate, to the extent that they relate to eligible dubbing services rendered in Québec before the completion date of the dubbed master copy of the property or after that date within a period that is reasonable to the Minister but that must not extend beyond the date that is 18 months after the end of the corporation’s fiscal period that includes the completion date of the dubbed master copy, by an individual resident in Québec at any time in the calendar year in which the individual renders the eligible dubbing services or by a corporation or partnership having an establishment in Québec, other than an employee of the corporation, as part of the production of the property and that is paid by the corporation;

“qualified corporation” for a taxation year means a corporation that, in the year, has an establishment in Québec and carries on therein a business that consists in the rendering of dubbing services and that is a qualified business, but does not include

(a)  (paragraph repealed);

(b)  a corporation that is exempt from tax for the year under Book VIII; or

(c)  a corporation that would be exempt from tax for the year under section 985 but for section 192;

(d)  (paragraph repealed);

“qualified film dubbing expenditure” of a corporation for a taxation year in respect of the production of a property that is a qualified production means the lesser of

(a)  the amount by which

i.  the aggregate of

(1)  the film dubbing expenditure of the corporation for the year in respect of the production of the property,

(2)  any repayment made in the year by the corporation, another person or a partnership, as the case may be, pursuant to a legal obligation, of any assistance that was received by the corporation, the other person or the partnership and that is referred to, in relation to the production of the property, in subparagraph ii or in subparagraph d of the second paragraph in respect of a taxation year for which the corporation is a qualified corporation, and

(3)  the amount by which the aggregate of all amounts each of which is, for a taxation year preceding the year and in respect of the production of the property, the film dubbing expenditure of the corporation or an amount determined under subparagraph 2, exceeds the amount by which the aggregate of all amounts each of which is the qualified film dubbing expenditure of the corporation in respect of the production of the property, for a taxation year preceding the year, exceeds 285.71% of the aggregate of all amounts each of which is tax that the corporation is required to pay under Part III.1.0.1 for a year preceding the year by reason of subparagraph i of subparagraph b of the first paragraph of section 1129.4.0.2, in relation to assistance referred to in subparagraph ii, exceeds

ii.  the aggregate of

(1)  the amount of any government assistance and non-government assistance that the corporation has received, is entitled to receive or may reasonably expect to receive on or before the corporation’s filing-due date for the year, that is attributable to a film dubbing expenditure of the corporation for a taxation year preceding the year in respect of the production of the property, to the extent that the amount has not, under subparagraph i of subparagraph d of the second paragraph, reduced the film dubbing expenditure of the corporation for that preceding year, and

(2)  the amount of any benefit or advantage that a person or partnership has obtained, is entitled to obtain or may reasonably expect to obtain on or before the corporation’s filing-due date for the year, that is attributable to a film dubbing expenditure of the corporation for a taxation year preceding the year in respect of the production of the property, whether in the form of a reimbursement, compensation or guarantee, in the form of proceeds of disposition of a property which exceed the fair market value of the property or in any other form or manner, to the extent that that amount has not, under subparagraph ii of subparagraph d of the second paragraph, reduced the amount of the film dubbing expenditure of the corporation for that preceding year; and

(3)  the amount of any government assistance and non-government assistance that a person or partnership with whom or with which the corporation is not dealing at arm’s length has received, is entitled to receive or may reasonably expect to receive on or before the corporation’s filing-due date for the year, that, for a taxation year preceding the year in respect of the production of the property, is attributable to eligible dubbing services rendered by the person or partnership that are referred to in paragraph b of the definition of “film dubbing expenditure”, to the extent that the amount has not, under subparagraph iii of subparagraph d of the second paragraph, reduced the film dubbing expenditure of the corporation for that preceding year in respect of the property; and

(b)  the amount by which

i.  45% of the consideration paid to the qualified corporation in the year or a preceding taxation year for the performance of the dubbing contract in relation to the production of the property, exceeds

ii.  the amount by which the aggregate of all amounts each of which is the qualified film dubbing expenditure of the corporation in respect of the production of the property, for a taxation year preceding the year, exceeds 285.71% of the aggregate of all amounts each of which is tax that the corporation is required to pay under Part III.1.0.1 for a taxation year preceding the year in respect of the production of the property;

“qualified production” for a taxation year of a corporation means the dubbed version of a production in respect of which the Société de développement des entreprises culturelles certifies, on the certificate it issues to the corporation in respect of the dubbed version, that the dubbed version qualifies for the purposes of this division;

“salary or wages” means the income computed under Chapters I and II of Title II of Book III.

For the purposes of the definition of “film dubbing expenditure” in the first paragraph, the following rules apply:

(a)  for the purposes of paragraph b of that definition, the portion of the consideration paid by the corporation to a person or partnership with whom or with which the corporation was not dealing at arm’s length at the time the person or partnership undertook to provide eligible dubbing services as part of the production of the property shall not exceed the fair market value of the eligible dubbing services rendered in Québec by the person or partnership as part of the production of the property;

(b)  for the purposes of paragraph b of that definition, the portion of the consideration paid by the corporation for the provision of a service referred to in subparagraph vi of paragraph a of the definition of “eligible dubbing service” in the first paragraph is deemed to be equal to 30% of that portion of the consideration, and that portion of the consideration paid by the corporation for the provision of a service referred to in subparagraph vii of that paragraph a is deemed to be equal to 20% of that portion of the consideration;

(c)  for the purposes of paragraph b of that definition, the consideration paid by the corporation for the provision of eligible dubbing services shall not include the portion of that consideration that is the Québec sales tax or the goods and services tax in respect of those services;

(c.1)  no expenditure may be taken into consideration in computing the film dubbing expenditure of a corporation for a taxation year in respect of the production of a property, unless it is paid at the time the corporation first files with the Minister the prescribed form containing the prescribed information provided for in the first paragraph of section 1029.8.36.0.0.2 for that taxation year;

(d)  the amount of the film dubbing expenditure of a corporation for a taxation year in respect of the production of a property is to be reduced, where applicable, by the aggregate of all amounts each of which is the lesser of the particular amount that corresponds either to the salaries or wages described in paragraph a of that definition or to the consideration or the portion of the consideration described in paragraph b of that definition, that are included in that film dubbing expenditure of the corporation for the year, and the aggregate of

i.  the amount of any government assistance and non-government assistance attributable to the particular amount that the corporation has received, is entitled to receive or may reasonably expect to receive on or before the corporation’s filing-due date for that year,

ii.  the amount of any benefit or advantage attributable to the particular amount that a person or partnership has obtained, is entitled to obtain or may reasonably expect to obtain on or before the corporation’s filing-due date for that year, whether in the form of a reimbursement, compensation or guarantee, in the form of proceeds of disposition of a property which exceed the fair market value of the property, or in any other form or manner, and

iii.  if the particular amount corresponds to the consideration or the portion of the consideration described in paragraph b of that definition, the amount of any government assistance and non-government assistance that a person or partnership with whom or with which the corporation is not dealing at arm’s length has received, is entitled to receive or may reasonably expect to receive on or before the corporation’s filing-due date for the year, that is attributable to eligible dubbing services rendered in Québec by that person or partnership referred to in that paragraph; and

(e)  where, for a taxation year, a corporation is not a qualified corporation, its film dubbing expenditure for the year in respect of the production of a property is deemed to be nil.

For the purposes of subparagraph 2 of subparagraph i of paragraph a of the definition of “qualified film dubbing expenditure” in the first paragraph, an amount of assistance received by a corporation, another person or a partnership, as the case may be, is deemed, in respect of the production of a property that is a qualified production, to be repaid by the corporation, the other person or the partnership in a taxation year, pursuant to a legal obligation, if that amount

(a)  reduced, for the purpose of computing the amount that a corporation is deemed to have paid to the Minister for a taxation year under section 1029.8.36.0.0.2, in respect of the production of the property,

i.  because of subparagraph d of the second paragraph, a film dubbing expenditure of the corporation in respect of the production of the property, or

ii.  because of subparagraph ii of paragraph a of the definition of “qualified film dubbing expenditure” in the first paragraph, a qualified film dubbing expenditure of the corporation in respect of the production of the property;

(b)  was not received by the corporation, the other person or the partnership; and

(c)  ceased in the taxation year to be an amount that the corporation, the other person or the partnership may reasonably expect to receive.

For the purposes of subparagraph i of paragraph b of the definition of “qualified film dubbing expenditure” in the first paragraph, the following rules apply:

(a)  the consideration paid for the performance of a dubbing contract to the qualified corporation by a taxpayer with whom the corporation was not dealing at arm’s length at the time the contract was entered into shall not exceed the fair market value of the services rendered by the qualified corporation for the performance of the dubbing contract; and

(b)  the consideration paid for the performance of a dubbing contract to the qualified corporation shall not include the portion of that consideration that is the Québec sales tax or the goods and services tax in respect of that contract.

For the purposes of the definition of “qualified film dubbing expenditure” in the first paragraph, that definition is to be read as if

(a)  “285.71%” were replaced wherever it appears by “333 1/3%”, in the case of a production referred to in subparagraph a.1 of the first paragraph of section 1029.8.36.0.0.2; and

(b)  “285.71%” were replaced wherever it appears by “342.85%”, in the case of a production referred to in subparagraph b of the first paragraph of section 1029.8.36.0.0.2.

1999, c. 83, s. 194; 2000, c. 5, s. 256; 2001, c. 7, s. 169; 2001, c. 51, s. 228; 2002, c. 9, s. 60; 2003, c. 9, s. 201; 2004, c. 21, s. 305; 2005, c. 1, s. 231; 2006, c. 13, s. 113; 2006, c. 36, s. 127; 2007, c. 12, s. 149; 2010, c. 5, s. 147; 2011, c. 1, s. 63.

2010-04-20

1029.8.36.0.0.1. In this division,

“eligible dubbing service” in relation to the production of a property that is a qualified production means

(a)  where the property is a feature film for theatres, any of the following services:

i.  the performance of actors,

ii.  adaptation, that is, translation of dialogue,

iii.  detection, that is, writing of synchronized dialogue, using conventional signs, of all the dialogue and mouth movements of all the characters of the original version,

iv.  calligraphy/grid/typing, that is, recopying the adapted text, taking into account the synchronization indications from detection, to be read by the actors during the recording of the dubbed version,

v.  stage management, that is, directing the actors during the recording,

vi.  the production of film titles, that is, the photography on neutral backgrounds of opening and closing credits and, as the case may be, of subtitles, to produce the negative of the titles for the dubbed version, to be used for the production of distribution copies, and

vii.  optical transfer, that is, recording of the sound on a negative to be matched with the negative of the picture to produce distribution copies for theatres; and

(b)  in any other case, any of the services referred to in subparagraphs i to v of paragraph a;

“film dubbing expenditure” of a corporation for a taxation year in respect of the production of a property that is a qualified production means, subject to the second paragraph, the aggregate of the following amounts, to the extent that they are reasonable in the circumstances:

(a)  the salaries or wages directly attributable to the property that are incurred by the corporation in the year and, where the year is the taxation year in which the corporation files an application for a certificate in respect of the property with the Société de développement des entreprises culturelles, the salaries or wages that are incurred by the corporation in a year preceding the year in which the corporation filed the application for the certificate, to the extent that they relate to eligible dubbing services rendered in Québec before the completion date of the dubbed master copy of the property or after that date within a period that is reasonable to the Minister but that must not extend beyond the date that is 18 months after the end of the corporation’s fiscal period that includes the completion date of the dubbed master copy, and that are paid by the corporation to its employees resident in Québec at any time in the calendar year in which they rendered the eligible dubbing services; and

(b)  the consideration that is incurred by the corporation in the year and, where the year is the taxation year in which the corporation files an application for a certificate in respect of the property with the Société de développement des entreprises culturelles, the portion of the consideration that is incurred by the corporation in a year preceding the year in which the corporation filed the application for the certificate, to the extent that they relate to eligible dubbing services rendered in Québec before the completion date of the dubbed master copy of the property or after that date within a period that is reasonable to the Minister but that must not extend beyond the date that is 18 months after the end of the corporation’s fiscal period that includes the completion date of the dubbed master copy, by an individual resident in Québec at any time in the calendar year in which the individual renders the eligible dubbing services or by a corporation or partnership having an establishment in Québec, other than an employee of the corporation, as part of the production of the property and that is paid by the corporation;

“qualified corporation” for a taxation year means a corporation that, in the year, has an establishment in Québec and carries on therein a business that consists in the rendering of dubbing services and that is a qualified business, but does not include

(a)  (paragraph repealed);

(b)  a corporation that is exempt from tax for the year under Book VIII; or

(c)  a corporation that would be exempt from tax for the year under section 985 but for section 192;

(d)  (paragraph repealed);

“qualified film dubbing expenditure” of a corporation for a taxation year in respect of the production of a property that is a qualified production means the lesser of

(a)  the amount by which

i.  the aggregate of

(1)  the film dubbing expenditure of the corporation for the year in respect of the production of the property,

(2)  any repayment made in the year by the corporation, another person or a partnership, as the case may be, pursuant to a legal obligation, of any assistance that was received by the corporation, the other person or the partnership and that is referred to, in relation to the production of the property, in subparagraph ii or in subparagraph d of the second paragraph in respect of a taxation year for which the corporation is a qualified corporation, and

(3)  the amount by which the aggregate of all amounts each of which is, for a taxation year preceding the year and in respect of the production of the property, the film dubbing expenditure of the corporation or an amount determined under subparagraph 2, exceeds the amount by which the aggregate of all amounts each of which is the qualified film dubbing expenditure of the corporation in respect of the production of the property, for a taxation year preceding the year, exceeds 300% of the aggregate of all amounts each of which is tax that the corporation is required to pay under Part III.1.0.1 for a year preceding the year by reason of subparagraph i of subparagraph b of the first paragraph of section 1129.4.0.2, in relation to assistance referred to in subparagraph ii, exceeds

ii.  the aggregate of

(1)  the amount of any government assistance and non-government assistance that the corporation has received, is entitled to receive or may reasonably expect to receive on or before the corporation’s filing-due date for the year, that is attributable to a film dubbing expenditure of the corporation for a taxation year preceding the year in respect of the production of the property, to the extent that the amount has not, under subparagraph i of subparagraph d of the second paragraph, reduced the film dubbing expenditure of the corporation for that preceding year, and

(2)  the amount of any benefit or advantage that a person or partnership has obtained, is entitled to obtain or may reasonably expect to obtain on or before the corporation’s filing-due date for the year, that is attributable to a film dubbing expenditure of the corporation for a taxation year preceding the year in respect of the production of the property, whether in the form of a reimbursement, compensation or guarantee, in the form of proceeds of disposition of a property which exceed the fair market value of the property or in any other form or manner, to the extent that that amount has not, under subparagraph ii of subparagraph d of the second paragraph, reduced the amount of the film dubbing expenditure of the corporation for that preceding year; and

(3)  the amount of any government assistance and non-government assistance that a person or partnership with whom or with which the corporation is not dealing at arm’s length has received, is entitled to receive or may reasonably expect to receive on or before the corporation’s filing-due date for the year, that, for a taxation year preceding the year in respect of the production of the property, is attributable to eligible dubbing services rendered by the person or partnership that are referred to in paragraph b of the definition of “film dubbing expenditure”, to the extent that the amount has not, under subparagraph iii of subparagraph d of the second paragraph, reduced the film dubbing expenditure of the corporation for that preceding year in respect of the property; and

(b)  the amount by which

i.  40.5% of the consideration paid to the qualified corporation in the year or a preceding taxation year for the performance of the dubbing contract in relation to the production of the property, exceeds

ii.  the amount by which the aggregate of all amounts each of which is the qualified film dubbing expenditure of the corporation in respect of the production of the property, for a taxation year preceding the year, exceeds 300% of the aggregate of all amounts each of which is tax that the corporation is required to pay under Part III.1.0.1 for a taxation year preceding the year in respect of the production of the property;

“qualified production” for a taxation year of a corporation means the dubbed version of a production in respect of which the Société de développement des entreprises culturelles certifies, on the certificate it issues to the corporation in respect of the dubbed version, that the dubbed version qualifies for the purposes of this division;

“salary or wages” means the income computed under Chapters I and II of Title II of Book III.

For the purposes of the definition of “film dubbing expenditure” in the first paragraph, the following rules apply:

(a)  for the purposes of paragraph b of that definition, the portion of the consideration paid by the corporation to a person or partnership with whom or with which the corporation was not dealing at arm’s length at the time the person or partnership undertook to provide eligible dubbing services as part of the production of the property shall not exceed the fair market value of the eligible dubbing services rendered in Québec by the person or partnership as part of the production of the property;

(b)  for the purposes of paragraph b of that definition, the portion of the consideration paid by the corporation for the provision of a service referred to in subparagraph vi of paragraph a of the definition of “eligible dubbing service” in the first paragraph is deemed to be equal to 30% of that portion of the consideration, and that portion of the consideration paid by the corporation for the provision of a service referred to in subparagraph vii of that paragraph a is deemed to be equal to 20% of that portion of the consideration;

(c)  for the purposes of paragraph b of that definition, the consideration paid by the corporation for the provision of eligible dubbing services shall not include the portion of that consideration that is the Québec sales tax or the goods and services tax in respect of those services;

(c.1)  no expenditure may be taken into consideration in computing the film dubbing expenditure of a corporation for a taxation year in respect of the production of a property, unless it is paid at the time the corporation first files with the Minister the prescribed form containing the prescribed information provided for in the first paragraph of section 1029.8.36.0.0.2 for that taxation year;

(d)  the amount of the film dubbing expenditure of a corporation for a taxation year in respect of the production of a property is to be reduced, where applicable, by the aggregate of all amounts each of which is the lesser of the particular amount that corresponds either to the salaries or wages described in paragraph a of that definition or to the consideration or the portion of the consideration described in paragraph b of that definition, that are included in that film dubbing expenditure of the corporation for the year, and the aggregate of

i.  the amount of any government assistance and non-government assistance attributable to the particular amount that the corporation has received, is entitled to receive or may reasonably expect to receive on or before the corporation’s filing-due date for that year,

ii.  the amount of any benefit or advantage attributable to the particular amount that a person or partnership has obtained, is entitled to obtain or may reasonably expect to obtain on or before the corporation’s filing-due date for that year, whether in the form of a reimbursement, compensation or guarantee, in the form of proceeds of disposition of a property which exceed the fair market value of the property, or in any other form or manner, and

iii.  if the particular amount corresponds to the consideration or the portion of the consideration described in paragraph b of that definition, the amount of any government assistance and non-government assistance that a person or partnership with whom or with which the corporation is not dealing at arm’s length has received, is entitled to receive or may reasonably expect to receive on or before the corporation’s filing-due date for the year, that is attributable to eligible dubbing services rendered in Québec by that person or partnership referred to in that paragraph; and

(e)  where, for a taxation year, a corporation is not a qualified corporation, its film dubbing expenditure for the year in respect of the production of a property is deemed to be nil.

For the purposes of subparagraph 2 of subparagraph i of paragraph a of the definition of “qualified film dubbing expenditure” in the first paragraph, an amount of assistance received by a corporation, another person or a partnership, as the case may be, is deemed, in respect of the production of a property that is a qualified production, to be repaid by the corporation, the other person or the partnership in a taxation year, pursuant to a legal obligation, if that amount

(a)  reduced, for the purpose of computing the amount that a corporation is deemed to have paid to the Minister for a taxation year under section 1029.8.36.0.0.2, in respect of the production of the property,

i.  because of subparagraph d of the second paragraph, a film dubbing expenditure of the corporation in respect of the production of the property, or

ii.  because of subparagraph ii of paragraph a of the definition of “qualified film dubbing expenditure” in the first paragraph, a qualified film dubbing expenditure of the corporation in respect of the production of the property;

(b)  was not received by the corporation, the other person or the partnership; and

(c)  ceased in the taxation year to be an amount that the corporation, the other person or the partnership may reasonably expect to receive.

For the purposes of subparagraph i of paragraph b of the definition of “qualified film dubbing expenditure” in the first paragraph, the following rules apply:

(a)  the consideration paid for the performance of a dubbing contract to the qualified corporation by a taxpayer with whom the corporation was not dealing at arm’s length at the time the contract was entered into shall not exceed the fair market value of the services rendered by the qualified corporation for the performance of the dubbing contract; and

(b)  the consideration paid for the performance of a dubbing contract to the qualified corporation shall not include the portion of that consideration that is the Québec sales tax or the goods and services tax in respect of that contract.

For the purposes of the definition of “qualified film dubbing expenditure” in the first paragraph, that definition is to be read as if

(a)  “300%” was replaced wherever it appears by “342.85%”, in the case of a production referred to in subparagraph a of the first paragraph of section 1029.8.36.0.0.2; and

(b)  “300%” was replaced wherever it appears by “3331/3%”, in the case of a production referred to in subparagraph a.1 of the first paragraph of section 1029.8.36.0.0.2.

1999, c. 83, s. 194; 2000, c. 5, s. 256; 2001, c. 7, s. 169; 2001, c. 51, s. 228; 2002, c. 9, s. 60; 2003, c. 9, s. 201; 2004, c. 21, s. 305; 2005, c. 1, s. 231; 2006, c. 13, s. 113; 2006, c. 36, s. 127; 2007, c. 12, s. 149; 2010, c. 5, s. 147.

2007-11-07

1029.8.36.0.0.1. In this division,

“eligible dubbing service” in relation to the production of a property that is a qualified production means

(a)  where the property is a feature film for theatres, any of the following services:

i.  the performance of actors,

ii.  adaptation, that is, translation of dialogue,

iii.  detection, that is, writing of synchronized dialogue, using conventional signs, of all the dialogue and mouth movements of all the characters of the original version,

iv.  calligraphy/grid/typing, that is, recopying the adapted text, taking into account the synchronization indications from detection, to be read by the actors during the recording of the dubbed version,

v.  stage management, that is, directing the actors during the recording,

vi.  the production of film titles, that is, the photography on neutral backgrounds of opening and closing credits and, as the case may be, of subtitles, to produce the negative of the titles for the dubbed version, to be used for the production of distribution copies, and

vii.  optical transfer, that is, recording of the sound on a negative to be matched with the negative of the picture to produce distribution copies for theatres; and

(b)  in any other case, any of the services referred to in subparagraphs i to v of paragraph a;

“film dubbing expenditure” of a corporation for a taxation year in respect of the production of a property that is a qualified production means, subject to the second paragraph, the aggregate of the following amounts, to the extent that they are reasonable in the circumstances:

(a)  the salaries or wages directly attributable to the property that are incurred by the corporation in the year and, where the year is the taxation year in which the corporation files an application for a certificate in respect of the property with the Société de développement des entreprises culturelles, the salaries or wages that are incurred by the corporation in a year preceding the year in which the corporation filed the application for the certificate, to the extent that they relate to eligible dubbing services rendered in Québec before the completion date of the dubbed master copy of the property or after that date within a period that is reasonable to the Minister but that must not extend beyond the date that is 18 months after the end of the corporation’s fiscal period that includes the completion date of the dubbed master copy, and that are paid by the corporation to its employees resident in Québec at any time in the calendar year in which they rendered the eligible dubbing services; and

(b)  the consideration that is incurred by the corporation in the year and, where the year is the taxation year in which the corporation files an application for a certificate in respect of the property with the Société de développement des entreprises culturelles, the portion of the consideration that is incurred by the corporation in a year preceding the year in which the corporation filed the application for the certificate, to the extent that they relate to eligible dubbing services rendered in Québec before the completion date of the dubbed master copy of the property or after that date within a period that is reasonable to the Minister but that must not extend beyond the date that is 18 months after the end of the corporation’s fiscal period that includes the completion date of the dubbed master copy, by an individual resident in Québec at any time in the calendar year in which the individual renders the eligible dubbing services or by a corporation or partnership having an establishment in Québec, other than an employee of the corporation, as part of the production of the property and that is paid by the corporation;

“qualified corporation” for a taxation year means a corporation that, in the year, has an establishment in Québec and carries on therein a business that consists in the rendering of dubbing services and that is a qualified business, but does not include

(a)  (paragraph repealed);

(b)  a corporation that is exempt from tax for the year under Book VIII; or

(c)  a corporation that would be exempt from tax for the year under section 985 but for section 192;

(d)  (paragraph repealed);

“qualified film dubbing expenditure” of a corporation for a taxation year in respect of the production of a property that is a qualified production means the lesser of

(a)  the amount by which

i.  the aggregate of

(1)  the film dubbing expenditure of the corporation for the year in respect of the production of the property,

(2)  any repayment made in the year by the corporation, another person or a partnership, as the case may be, pursuant to a legal obligation, of any assistance that was received by the corporation, the other person or the partnership and that is referred to, in relation to the production of the property, in subparagraph ii or in subparagraph d of the second paragraph in respect of a taxation year for which the corporation is a qualified corporation, and

(3)  the amount by which the aggregate of all amounts each of which is, for a taxation year preceding the year and in respect of the production of the property, the film dubbing expenditure of the corporation or an amount determined under subparagraph 2, exceeds the amount by which the aggregate of all amounts each of which is the qualified film dubbing expenditure of the corporation in respect of the production of the property, for a taxation year preceding the year, exceeds 300% of the aggregate of all amounts each of which is tax that the corporation is required to pay under Part III.1.0.1 for a year preceding the year by reason of subparagraph i of subparagraph b of the first paragraph of section 1129.4.0.2, in relation to assistance referred to in subparagraph ii, exceeds

ii.  the aggregate of

(1)  the amount of any government assistance and non-government assistance that the corporation has received, is entitled to receive or may reasonably expect to receive on or before the corporation’s filing-due date for the year, that is attributable to a film dubbing expenditure of the corporation for a taxation year preceding the year in respect of the production of the property, to the extent that the amount has not, under subparagraph i of subparagraph d of the second paragraph, reduced the film dubbing expenditure of the corporation for that preceding year, and

(2)  the amount of any benefit or advantage that a person or partnership has obtained, is entitled to obtain or may reasonably expect to obtain on or before the corporation’s filing-due date for the year, that is attributable to a film dubbing expenditure of the corporation for a taxation year preceding the year in respect of the production of the property, whether in the form of a reimbursement, compensation or guarantee, in the form of proceeds of disposition of a property which exceed the fair market value of the property or in any other form or manner, to the extent that that amount has not, under subparagraph ii of subparagraph d of the second paragraph, reduced the amount of the film dubbing expenditure of the corporation for that preceding year; and

(3)  the amount of any government assistance and non-government assistance that a person or partnership with whom or with which the corporation is not dealing at arm’s length has received, is entitled to receive or may reasonably expect to receive on or before the corporation’s filing-due date for the year, that, for a taxation year preceding the year in respect of the production of the property, is attributable to eligible dubbing services rendered by the person or partnership that are referred to in paragraph b of the definition of “film dubbing expenditure”, to the extent that the amount has not, under subparagraph iii of subparagraph d of the second paragraph, reduced the film dubbing expenditure of the corporation for that preceding year in respect of the property; and

(b)  the amount by which

i.  40.5% of the consideration paid to the qualified corporation in the year or a preceding taxation year for the performance of the dubbing contract in relation to the production of the property, exceeds

ii.  the amount by which the aggregate of all amounts each of which is the qualified film dubbing expenditure of the corporation in respect of the production of the property, for a taxation year preceding the year, exceeds 300% of the aggregate of all amounts each of which is tax that the corporation is required to pay under Part III.1.0.1 for a taxation year preceding the year in respect of the production of the property;

“qualified production” for a taxation year of a corporation means the dubbed version of a production in respect of which the Société de développement des entreprises culturelles certifies, on the certificate it issues to the corporation in respect of the dubbed version, that the dubbed version qualifies for the purposes of this division;

“salary or wages” means the income computed under Chapters I and II of Title II of Book III.

For the purposes of the definition of “film dubbing expenditure” in the first paragraph, the following rules apply:

(a)  for the purposes of paragraph b of that definition, the portion of the consideration paid by the corporation to a person or partnership with whom or with which the corporation was not dealing at arm’s length at the time the person or partnership undertook to provide eligible dubbing services as part of the production of the property shall not exceed the fair market value of the eligible dubbing services rendered in Québec by the person or partnership as part of the production of the property;

(b)  for the purposes of paragraph b of that definition, the portion of the consideration paid by the corporation for the provision of a service referred to in subparagraph vi of paragraph a of the definition of “eligible dubbing service” in the first paragraph is deemed to be equal to 30% of that portion of the consideration, and that portion of the consideration paid by the corporation for the provision of a service referred to in subparagraph vii of that paragraph a is deemed to be equal to 20% of that portion of the consideration;

(c)  for the purposes of paragraph b of that definition, the consideration paid by the corporation for the provision of eligible dubbing services shall not include the portion of that consideration that is the Québec sales tax or the goods and services tax in respect of those services;

(c.1)  no expenditure may be taken into consideration in computing the film dubbing expenditure of a corporation for a taxation year in respect of the production of a property, unless it is paid at the time the corporation first files with the Minister the prescribed form containing the prescribed information provided for in the first paragraph of section 1029.8.36.0.0.2 for that taxation year;

(d)  the amount of the film dubbing expenditure of a corporation for a taxation year in respect of the production of a property is to be reduced, where applicable, by the aggregate of all amounts each of which is the lesser of the particular amount that corresponds either to the salaries or wages described in paragraph a of that definition or to the consideration or the portion of the consideration described in paragraph b of that definition, that are included in that film dubbing expenditure of the corporation for the year, and the aggregate of

i.  the amount of any government assistance and non-government assistance attributable to the particular amount that the corporation has received, is entitled to receive or may reasonably expect to receive on or before the corporation’s filing-due date for that year,

ii.  the amount of any benefit or advantage attributable to the particular amount that a person or partnership has obtained, is entitled to obtain or may reasonably expect to obtain on or before the corporation’s filing-due date for that year, whether in the form of a reimbursement, compensation or guarantee, in the form of proceeds of disposition of a property which exceed the fair market value of the property, or in any other form or manner, and

iii.  if the particular amount corresponds to the consideration or the portion of the consideration described in paragraph b of that definition, the amount of any government assistance and non-government assistance that a person or partnership with whom or with which the corporation is not dealing at arm’s length has received, is entitled to receive or may reasonably expect to receive on or before the corporation’s filing-due date for the year, that is attributable to eligible dubbing services rendered in Québec by that person or partnership referred to in that paragraph; and

(e)  where, for a taxation year, a corporation is not a qualified corporation, its film dubbing expenditure for the year in respect of the production of a property is deemed to be nil.

For the purposes of subparagraph 2 of subparagraph i of paragraph a of the definition of “qualified film dubbing expenditure” in the first paragraph, an amount of assistance received by a corporation, another person or a partnership, as the case may be, is deemed, in respect of the production of a property that is a qualified production, to be repaid by the corporation, the other person or the partnership in a taxation year, pursuant to a legal obligation, if that amount

(a)  reduced, for the purpose of computing the amount that a corporation is deemed to have paid to the Minister for a taxation year under section 1029.8.36.0.0.2, in respect of the production of the property,

i.  because of subparagraph d of the second paragraph, a film dubbing expenditure of the corporation in respect of the production of the property, or

ii.  because of subparagraph ii of paragraph a of the definition of “qualified film dubbing expenditure” in the first paragraph, a qualified film dubbing expenditure of the corporation in respect of the production of the property;

(b)  was not received by the corporation, the other person or the partnership; and

(c)  ceased in the taxation year to be an amount that the corporation, the other person or the partnership may reasonably expect to receive.

For the purposes of subparagraph i of paragraph b of the definition of “qualified film dubbing expenditure” in the first paragraph, the following rules apply:

(a)  the consideration paid for the performance of a dubbing contract to the qualified corporation by a taxpayer with whom the corporation was not dealing at arm’s length at the time the contract was entered into shall not exceed the fair market value of the services rendered by the qualified corporation for the performance of the dubbing contract; and

(b)  the consideration paid for the performance of a dubbing contract to the qualified corporation shall not include the portion of that consideration that is the Québec sales tax or the goods and services tax in respect of that contract.

In the case of a production referred to in subparagraph a of the first paragraph of section 1029.8.36.0.0.2, the definition of “qualified film dubbing expenditure” in the first paragraph shall be read, in respect of that production, with “300%”, wherever it appears, replaced by “342.85%”.

1999, c. 83, s. 194; 2000, c. 5, s. 256; 2001, c. 7, s. 169; 2001, c. 51, s. 228; 2002, c. 9, s. 60; 2003, c. 9, s. 201; 2004, c. 21, s. 305; 2005, c. 1, s. 231; 2006, c. 13, s. 113; 2006, c. 36, s. 127; 2007, c. 12, s. 149.

2006-12-06

1029.8.36.0.0.1. In this division,

“eligible dubbing service” in relation to the production of a property that is a qualified production means

(a)  where the property is a feature film for theatres, any of the following services:

i.  the performance of actors,

ii.  adaptation, that is, translation of dialogue,

iii.  detection, that is, writing of synchronized dialogue, using conventional signs, of all the dialogue and mouth movements of all the characters of the original version,

iv.  calligraphy/grid/typing, that is, recopying the adapted text, taking into account the synchronization indications from detection, to be read by the actors during the recording of the dubbed version,

v.  stage management, that is, directing the actors during the recording,

vi.  the production of film titles, that is, the photography on neutral backgrounds of opening and closing credits and, as the case may be, of subtitles, to produce the negative of the titles for the dubbed version, to be used for the production of distribution copies, and

vii.  optical transfer, that is, recording of the sound on a negative to be matched with the negative of the picture to produce distribution copies for theatres; and

(b)  in any other case, any of the services referred to in subparagraphs i to v of paragraph a;

“film dubbing expenditure” of a corporation for a taxation year in respect of the production of a property that is a qualified production means, subject to the second paragraph, the aggregate of the following amounts, to the extent that they are reasonable in the circumstances:

(a)  the salaries or wages directly attributable to the property that are incurred by the corporation in the year and, where the year is the taxation year in which the corporation files an application for a certificate in respect of the property with the Société de développement des entreprises culturelles, the salaries or wages that are incurred by the corporation in a year preceding the year in which the corporation filed the application for the certificate, to the extent that they relate to eligible dubbing services rendered in Québec before the completion date of the dubbed master copy of the property or after that date within a period that is reasonable to the Minister but that must not extend beyond the date that is 18 months after the end of the corporation’s fiscal period that includes the completion date of the dubbed master copy, and that are paid by the corporation to its employees resident in Québec at any time in the calendar year in which they rendered the eligible dubbing services; and

(b)  the consideration that is incurred by the corporation in the year and, where the year is the taxation year in which the corporation files an application for a certificate in respect of the property with the Société de développement des entreprises culturelles, the portion of the consideration that is incurred by the corporation in a year preceding the year in which the corporation filed the application for the certificate, to the extent that they relate to eligible dubbing services rendered in Québec before the completion date of the dubbed master copy of the property or after that date within a period that is reasonable to the Minister but that must not extend beyond the date that is 18 months after the end of the corporation’s fiscal period that includes the completion date of the dubbed master copy, by an individual resident in Québec at any time in the calendar year in which the individual renders the eligible dubbing services or by a corporation or partnership having an establishment in Québec, other than an employee of the corporation, as part of the production of the property and that is paid by the corporation;

“qualified corporation” for a taxation year means a corporation that, in the year, has an establishment in Québec and carries on therein a business that consists in the rendering of dubbing services and that is a qualified business, but does not include

(a)  (paragraph repealed);

(b)  a corporation that is exempt from tax for the year under Book VIII; or

(c)  a corporation that would be exempt from tax for the year under section 985 but for section 192;

(d)  (paragraph repealed);

“qualified film dubbing expenditure” of a corporation for a taxation year in respect of the production of a property that is a qualified production means the lesser of

(a)  the amount by which

i.  the aggregate of

(1)  the film dubbing expenditure of the corporation for the year in respect of the production of the property,

(2)  any repayment made by the corporation in the year, pursuant to a legal obligation, of any assistance referred to, in relation to the production of the property, in subparagraph ii or in subparagraph d of the second paragraph in respect of a taxation year for which the corporation is a qualified corporation, and

(3)  the amount by which the aggregate of all amounts each of which is, for a taxation year preceding the year and in respect of the production of the property, the film dubbing expenditure of the corporation or an amount determined under subparagraph 2, exceeds the amount by which the aggregate of all amounts each of which is the qualified film dubbing expenditure of the corporation in respect of the production of the property, for a taxation year preceding the year, exceeds 300% of the aggregate of all amounts each of which is tax that the corporation is required to pay under Part III.1.0.1 for a year preceding the year by reason of subparagraph i of subparagraph b of the first paragraph of section 1129.4.0.2, in relation to assistance referred to in subparagraph ii, exceeds

ii.  the aggregate of

(1)  the amount of any government assistance and non-government assistance that the corporation has received, is entitled to receive or may reasonably expect to receive on or before the corporation’s filing-due date for the year, that is attributable to a film dubbing expenditure of the corporation for a taxation year preceding the year in respect of the production of the property, to the extent that the amount has not, under subparagraph i of subparagraph d of the second paragraph, reduced the film dubbing expenditure of the corporation for that preceding year, and

(2)  the amount of any benefit or advantage that a person or partnership has obtained, is entitled to obtain or may reasonably expect to obtain on or before the corporation’s filing-due date for the year, that is attributable to a film dubbing expenditure of the corporation for a taxation year preceding the year in respect of the production of the property, whether in the form of a reimbursement, compensation or guarantee, in the form of proceeds of disposition of a property which exceed the fair market value of the property or in any other form or manner, to the extent that that amount has not, under subparagraph ii of subparagraph d of the second paragraph, reduced the amount of the film dubbing expenditure of the corporation for that preceding year; and

(b)  the amount by which

i.  40.5% of the consideration paid to the qualified corporation in the year or a preceding taxation year for the performance of the dubbing contract in relation to the production of the property, exceeds

ii.  the amount by which the aggregate of all amounts each of which is the qualified film dubbing expenditure of the corporation in respect of the production of the property, for a taxation year preceding the year, exceeds 300% of the aggregate of all amounts each of which is tax that the corporation is required to pay under Part III.1.0.1 for a taxation year preceding the year in respect of the production of the property;

“qualified production” for a taxation year of a corporation means the dubbed version of a production in respect of which the Société de développement des entreprises culturelles certifies, on the certificate it issues to the corporation in respect of the dubbed version, that the dubbed version qualifies for the purposes of this division;

“salary or wages” means the income computed under Chapters I and II of Title II of Book III.

For the purposes of the definition of “film dubbing expenditure” in the first paragraph, the following rules apply:

(a)  for the purposes of paragraph b of that definition, the portion of the consideration paid by the corporation to a person or partnership with whom or with which the corporation was not dealing at arm’s length at the time the person or partnership undertook to provide eligible dubbing services as part of the production of the property shall not exceed the fair market value of the eligible dubbing services rendered in Québec by the person or partnership as part of the production of the property;

(b)  for the purposes of paragraph b of that definition, the portion of the consideration paid by the corporation for the provision of a service referred to in subparagraph vi of paragraph a of the definition of “eligible dubbing service” in the first paragraph is deemed to be equal to 30% of that portion of the consideration, and that portion of the consideration paid by the corporation for the provision of a service referred to in subparagraph vii of that paragraph a is deemed to be equal to 20% of that portion of the consideration;

(c)  for the purposes of paragraph b of that definition, the consideration paid by the corporation for the provision of eligible dubbing services shall not include the portion of that consideration that is the Québec sales tax or the goods and services tax in respect of those services;

(c.1)  no expenditure may be taken into consideration in computing the film dubbing expenditure of a corporation for a taxation year in respect of the production of a property, unless it is paid at the time the corporation first files with the Minister the prescribed form containing the prescribed information provided for in the first paragraph of section 1029.8.36.0.0.2 for that taxation year;

(d)  the amount of the film dubbing expenditure of a corporation for a taxation year in respect of the production of a property shall be reduced, where applicable, by the aggregate of

i.  the amount of any government assistance and non-government assistance attributable to each of the amounts described in paragraph a or b of that definition, where applicable, included in that film dubbing expenditure of the corporation for the year, that the corporation has received, is entitled to receive or may reasonably expect to receive on or before the corporation’s filing-due date for the year, up to each of those amounts, as the case may be, and

ii.  the amount of any benefit or advantage attributable to each of the amounts described in paragraph a or b of that definition, where applicable, included in that film dubbing expenditure of the corporation for the year, that a person or partnership has obtained , is entitled to obtain or may reasonably expect to obtain on or before the corporation’s filing-due date for that year, whether in the form of a reimbursement, compensation or guarantee, in the form of proceeds of disposition of a property which exceed the fair market value of the property, or in any other form or manner, up to each of those amounts, as the case may be; and

(e)  where, for a taxation year, a corporation is not a qualified corporation, its film dubbing expenditure for the year in respect of the production of a property is deemed to be nil.

For the purposes of subparagraph 2 of subparagraph i of paragraph a of the definition of “qualified film dubbing expenditure” in the first paragraph, an amount of assistance is deemed, in respect of the production of a property that is a qualified production, to be repaid by a corporation in a taxation year, pursuant to a legal obligation, where that amount

(a)  reduced, for the purpose of computing the amount that the corporation is deemed to have paid to the Minister for a taxation year under section 1029.8.36.0.0.2, in respect of the production of the property,

i.  because of subparagraph d of the second paragraph, a film dubbing expenditure of the corporation in respect of the production of the property, or

ii.  because of subparagraph ii of paragraph a of the definition of “qualified film dubbing expenditure” in the first paragraph, a qualified film dubbing expenditure of the corporation in respect of the production of the property;

(b)  was not received by the corporation; and

(c)  ceased in the taxation year to be an amount that the corporation may reasonably expect to receive.

For the purposes of subparagraph i of paragraph b of the definition of “qualified film dubbing expenditure” in the first paragraph, the following rules apply:

(a)  the consideration paid for the performance of a dubbing contract to the qualified corporation by a taxpayer with whom the corporation was not dealing at arm’s length at the time the contract was entered into shall not exceed the fair market value of the services rendered by the qualified corporation for the performance of the dubbing contract; and

(b)  the consideration paid for the performance of a dubbing contract to the qualified corporation shall not include the portion of that consideration that is the Québec sales tax or the goods and services tax in respect of that contract.

In the case of a production referred to in subparagraph a of the first paragraph of section 1029.8.36.0.0.2, the definition of “qualified film dubbing expenditure” in the first paragraph shall be read, in respect of that production, with “300%”, wherever it appears, replaced by “342.85%”.

1999, c. 83, s. 194; 2000, c. 5, s. 256; 2001, c. 7, s. 169; 2001, c. 51, s. 228; 2002, c. 9, s. 60; 2003, c. 9, s. 201; 2004, c. 21, s. 305; 2005, c. 1, s. 231; 2006, c. 13, s. 113; 2006, c. 36, s. 127.

2006-06-13

1029.8.36.0.0.1. In this division,

“eligible dubbing service” in relation to the production of a property that is a qualified production means

(a)  where the property is a feature film for theatres, any of the following services:

i.  the performance of actors,

ii.  adaptation, that is, translation of dialogue,

iii.  detection, that is, writing of synchronized dialogue, using conventional signs, of all the dialogue and mouth movements of all the characters of the original version,

iv.  calligraphy/grid/typing, that is, recopying the adapted text, taking into account the synchronization indications from detection, to be read by the actors during the recording of the dubbed version,

v.  stage management, that is, directing the actors during the recording,

vi.  the production of film titles, that is, the photography on neutral backgrounds of opening and closing credits and, as the case may be, of subtitles, to produce the negative of the titles for the dubbed version, to be used for the production of distribution copies, and

vii.  optical transfer, that is, recording of the sound on a negative to be matched with the negative of the picture to produce distribution copies for theatres; and

(b)  in any other case, any of the services referred to in subparagraphs i to v of paragraph a;

“film dubbing expenditure” of a corporation for a taxation year in respect of the production of a property that is a qualified production means, subject to the second paragraph, the aggregate of the following amounts, to the extent that they are reasonable in the circumstances:

(a)  the salaries or wages directly attributable to the property that are incurred by the corporation in the year and, where the year is the taxation year in which the corporation files an application for a certificate in respect of the property with the Société de développement des entreprises culturelles, the salaries or wages that are incurred by the corporation in a year preceding the year in which the corporation filed the application for the certificate, to the extent that they relate to eligible dubbing services rendered in Québec before the completion date of the dubbed master copy of the property or after that date within a period that is reasonable to the Minister but that must not extend beyond the date that is 18 months after the end of the corporation’s fiscal period that includes the completion date of the dubbed master copy, and that are paid by the corporation to its employees resident in Québec at any time in the calendar year in which they rendered the eligible dubbing services; and

(b)  the consideration that is incurred by the corporation in the year and, where the year is the taxation year in which the corporation files an application for a certificate in respect of the property with the Société de développement des entreprises culturelles, the portion of the consideration that is incurred by the corporation in a year preceding the year in which the corporation filed the application for the certificate, to the extent that they relate to eligible dubbing services rendered in Québec before the completion date of the dubbed master copy of the property or after that date within a period that is reasonable to the Minister but that must not extend beyond the date that is 18 months after the end of the corporation’s fiscal period that includes the completion date of the dubbed master copy, by an individual resident in Québec at any time in the calendar year in which the individual renders the eligible dubbing services or by a corporation or partnership having an establishment in Québec, other than an employee of the corporation, as part of the production of the property and that is paid by the corporation;

“qualified corporation” for a taxation year means a corporation that, in the year, has an establishment in Québec and carries on therein a business that consists in the rendering of dubbing services and that is a qualified business, but does not include

(a)  (paragraph repealed);

(b)  a corporation that is exempt from tax for the year under Book VIII;

(c)  a corporation that would be exempt from tax for the year under section 985 but for section 192; or

(d)  (paragraph repealed);

“qualified film dubbing expenditure” of a corporation for a taxation year in respect of the production of a property that is a qualified production means the lesser of

(a)  the amount by which

i.  the aggregate of

(1)  the film dubbing expenditure of the corporation for the year in respect of the production of the property,

(2)  any repayment made by the corporation in the year, pursuant to a legal obligation, of any assistance referred to, in relation to the production of the property, in subparagraph ii or in subparagraph d of the second paragraph in respect of a taxation year for which the corporation is a qualified corporation, and

(3)  the amount by which the aggregate of all amounts each of which is, for a taxation year preceding the year and in respect of the production of the property, the film dubbing expenditure of the corporation or an amount determined under subparagraph 2, exceeds the amount by which the aggregate of all amounts each of which is the qualified film dubbing expenditure of the corporation in respect of the production of the property, for a taxation year preceding the year, exceeds 300% of the aggregate of all amounts each of which is tax that the corporation is required to pay under Part III.1.0.1 for a year preceding the year by reason of subparagraph i of subparagraph b of the first paragraph of section 1129.4.0.2, in relation to assistance referred to in subparagraph ii, exceeds

ii.  the aggregate of

(1)  the amount of any government assistance and non-government assistance that the corporation has received, is entitled to receive or may reasonably expect to receive on or before the corporation’s filing-due date for the year, that is attributable to a film dubbing expenditure of the corporation for a taxation year preceding the year in respect of the production of the property, to the extent that the amount has not, under subparagraph i of subparagraph d of the second paragraph, reduced the film dubbing expenditure of the corporation for that preceding year, and

(2)  the amount of any benefit or advantage that the corporation has obtained, is entitled to obtain or may reasonably expect to obtain on or before the corporation’s filing-due date for the year, that is attributable to a film dubbing expenditure of the corporation for a taxation year preceding the year in respect of the production of the property, whether in the form of a reimbursement, compensation or guarantee, in the form of proceeds of disposition of a property which exceed the fair market value of the property or in any other form or manner, to the extent that that amount has not, under subparagraph ii of subparagraph d of the second paragraph, reduced the amount of the film dubbing expenditure of the corporation for that preceding year; and

(b)  the amount by which

i.  40.5% of the consideration paid to the qualified corporation in the year or a preceding taxation year for the performance of the dubbing contract in relation to the production of the property, exceeds

ii.  the amount by which the aggregate of all amounts each of which is the qualified film dubbing expenditure of the corporation in respect of the production of the property, for a taxation year preceding the year, exceeds 300% of the aggregate of all amounts each of which is tax that the corporation is required to pay under Part III.1.0.1 for a taxation year preceding the year in respect of the production of the property;

“qualified production” for a taxation year of a corporation means the dubbed version of a production in respect of which the Société de développement des entreprises culturelles certifies, on the certificate it issues to the corporation in respect of the dubbed version, that the dubbed version qualifies for the purposes of this division;

“salary or wages” means the income computed under Chapters I and II of Title II of Book III.

For the purposes of the definition of "film dubbing expenditure" in the first paragraph, the following rules apply:

(a)  for the purposes of paragraph b of that definition, the portion of the consideration paid by the corporation to a person or partnership with whom or with which the corporation was not dealing at arm’s length at the time the person or partnership undertook to provide eligible dubbing services as part of the production of the property shall not exceed the fair market value of the eligible dubbing services rendered in Québec by the person or partnership as part of the production of the property;

(b)  for the purposes of paragraph b of that definition, the portion of the consideration paid by the corporation for the provision of a service referred to in subparagraph vi of paragraph a of the definition of "eligible dubbing service" in the first paragraph is deemed to be equal to 30% of that portion of the consideration, and that portion of the consideration paid by the corporation for the provision of a service referred to in subparagraph vii of that paragraph a is deemed to be equal to 20% of that portion of the consideration;

(c)  for the purposes of paragraph b of that definition, the consideration paid by the corporation for the provision of eligible dubbing services shall not include the portion of that consideration that is the Québec sales tax or the goods and services tax in respect of those services;

(c.1)  no expenditure may be taken into consideration in computing the film dubbing expenditure of a corporation for a taxation year in respect of the production of a property, unless it is paid at the time the corporation first files with the Minister the prescribed form containing the prescribed information provided for in the first paragraph of section 1029.8.36.0.0.2 for that taxation year;

(d)  the amount of the film dubbing expenditure of a corporation for a taxation year in respect of the production of a property shall be reduced, where applicable, by the aggregate of

i.  the amount of any government assistance and non-government assistance attributable to each of the amounts described in paragraph a or b of that definition, where applicable, included in that film dubbing expenditure of the corporation for the year, that the corporation has received, is entitled to receive or may reasonably expect to receive on or before the corporation’s filing-due date for the year, up to each of those amounts, as the case may be, and

ii.  the amount of any benefit or advantage attributable to each of the amounts described in paragraph a or b of that definition, where applicable, included in that film dubbing expenditure of the corporation for the year, that the corporation has obtained, is entitled to obtain or may reasonably expect to obtain on or before the corporation’s filing-due date for that year, whether in the form of a reimbursement, compensation or guarantee, in the form of proceeds of disposition of a property which exceed the fair market value of the property, or in any other form or manner, up to each of those amounts, as the case may be; and

(e)  where, for a taxation year, a corporation is not a qualified corporation, its film dubbing expenditure for the year in respect of the production of a property is deemed to be nil.

For the purposes of subparagraph 2 of subparagraph i of paragraph a of the definition of "qualified film dubbing expenditure" in the first paragraph, an amount of assistance is deemed, in respect of the production of a property that is a qualified production, to be repaid by a corporation in a taxation year, pursuant to a legal obligation, where that amount

(a)  reduced, for the purpose of computing the amount that the corporation is deemed to have paid to the Minister for a taxation year under section 1029.8.36.0.0.2, in respect of the production of the property,

i.  because of subparagraph d of the second paragraph, a film dubbing expenditure of the corporation in respect of the production of the property, or

ii.  because of subparagraph ii of paragraph a of the definition of "qualified film dubbing expenditure" in the first paragraph, a qualified film dubbing expenditure of the corporation in respect of the production of the property;

(b)  was not received by the corporation; and

(c)  ceased in the taxation year to be an amount that the corporation may reasonably expect to receive.

For the purposes of subparagraph i of paragraph b of the definition of "qualified film dubbing expenditure" in the first paragraph, the following rules apply:

(a)  the consideration paid for the performance of a dubbing contract to the qualified corporation by a taxpayer with whom the corporation was not dealing at arm’s length at the time the contract was entered into shall not exceed the fair market value of the services rendered by the qualified corporation for the performance of the dubbing contract; and

(b)  the consideration paid for the performance of a dubbing contract to the qualified corporation shall not include the portion of that consideration that is the Québec sales tax or the goods and services tax in respect of that contract.

In the case of a production referred to in subparagraph a of the first paragraph of section 1029.8.36.0.0.2, the definition of "qualified film dubbing expenditure" in the first paragraph shall be read, in respect of that production, with "300%", wherever it appears, replaced by "342.85%".

1999, c. 83, s. 194; 2000, c. 5, s. 256; 2001, c. 7, s. 169; 2001, c. 51, s. 228; 2002, c. 9, s. 60; 2003, c. 9, s. 201; 2004, c. 21, s. 305; 2005, c. 1, s. 231; 2006, c. 13, s. 113.

2006-03-01

1029.8.36.0.0.1. In this division,

“eligible dubbing service” in relation to the production of a property that is a qualified production means

(a)  where the property is a feature film for theatres, any of the following services:

i.  the performance of actors,

ii.  adaptation, that is, translation of dialogue,

iii.  detection, that is, writing of synchronized dialogue, using conventional signs, of all the dialogue and mouth movements of all the characters of the original version,

iv.  calligraphy/grid/typing, that is, recopying the adapted text, taking into account the synchronization indications from detection, to be read by the actors during the recording of the dubbed version,

v.  stage management, that is, directing the actors during the recording,

vi.  the production of film titles, that is, the photography on neutral backgrounds of opening and closing credits and, as the case may be, of subtitles, to produce the negative of the titles for the dubbed version, to be used for the production of distribution copies, and

vii.  optical transfer, that is, recording of the sound on a negative to be matched with the negative of the picture to produce distribution copies for theatres; and

(b)  in any other case, any of the services referred to in subparagraphs i to v of paragraph a;

“film dubbing expenditure” of a corporation for a taxation year in respect of the production of a property that is a qualified production means, subject to the second paragraph, the aggregate of the following amounts, to the extent that they are reasonable in the circumstances:

(a)  the salaries or wages directly attributable to the property that are incurred by the corporation in the year and, where the year is the taxation year in which the corporation files an application for a certificate in respect of the property with the Société de développement des entreprises culturelles, the salaries or wages that are incurred by the corporation in a year preceding the year in which the corporation filed the application for the certificate, to the extent that they relate to eligible dubbing services rendered in Québec before the completion date of the dubbed master copy of the property or after that date within a period that is reasonable to the Minister but that must not extend beyond the date that is 18 months after the end of the corporation’s fiscal period that includes the completion date of the dubbed master copy, and that are paid by the corporation to its employees resident in Québec at any time in the calendar year in which they rendered the eligible dubbing services; and

(b)  the consideration that is incurred by the corporation in the year and, where the year is the taxation year in which the corporation files an application for a certificate in respect of the property with the Société de développement des entreprises culturelles, the portion of the consideration that is incurred by the corporation in a year preceding the year in which the corporation filed the application for the certificate, to the extent that they relate to eligible dubbing services rendered in Québec before the completion date of the dubbed master copy of the property or after that date within a period that is reasonable to the Minister but that must not extend beyond the date that is 18 months after the end of the corporation’s fiscal period that includes the completion date of the dubbed master copy, by an individual resident in Québec at any time in the calendar year in which the individual renders the eligible dubbing services or by a corporation or partnership having an establishment in Québec, other than an employee of the corporation, as part of the production of the property and that is paid by the corporation;

“qualified corporation” for a taxation year means a corporation that, in the year, has an establishment in Québec and carries on therein a business that consists in the rendering of dubbing services and that is a qualified business, but does not include

(a)  (paragraph repealed);

(b)  a corporation that is exempt from tax for the year under Book VIII;

(c)  a corporation that would be exempt from tax for the year under section 985 but for section 192; or

(d)  (paragraph repealed);

“qualified film dubbing expenditure” of a corporation for a taxation year in respect of the production of a property that is a qualified production means the lesser of

(a)  the amount by which

i.  the aggregate of

(1)  the film dubbing expenditure of the corporation for the year in respect of the production of the property,

(2)  any repayment made by the corporation in the year, pursuant to a legal obligation, of any assistance referred to, in relation to the production of the property, in subparagraph ii or in subparagraph d of the second paragraph in respect of a taxation year for which the corporation is a qualified corporation, and

(3)  the amount by which the aggregate of all amounts each of which is, for a taxation year preceding the year and in respect of the production of the property, the film dubbing expenditure of the corporation or an amount determined under subparagraph 2, exceeds the amount by which the aggregate of all amounts each of which is the qualified film dubbing expenditure of the corporation in respect of the production of the property, for a taxation year preceding the year, exceeds 300% of the aggregate of all amounts each of which is tax that the corporation is required to pay under Part III.1.0.1 for a year preceding the year by reason of subparagraph i of subparagraph b of the first paragraph of section 1129.4.0.2, in relation to assistance referred to in subparagraph ii, exceeds

ii.  the aggregate of

(1)  the amount of any government assistance and non-government assistance that the corporation has received, is entitled to receive or may reasonably expect to receive on or before the corporation’s filing-due date for the year, that is attributable to a film dubbing expenditure of the corporation for a taxation year preceding the year in respect of the production of the property, to the extent that the amount has not, under subparagraph i of subparagraph d of the second paragraph, reduced the film dubbing expenditure of the corporation for that preceding year, and

(2)  the amount of any benefit or advantage that the corporation has obtained, is entitled to obtain or may reasonably expect to obtain on or before the corporation’s filing-due date for the year, that is attributable to a film dubbing expenditure of the corporation for a taxation year preceding the year in respect of the production of the property, whether in the form of a reimbursement, compensation or guarantee, in the form of proceeds of disposition of a property which exceed the fair market value of the property or in any other form or manner, to the extent that that amount has not, under subparagraph ii of subparagraph d of the second paragraph, reduced the amount of the film dubbing expenditure of the corporation for that preceding year; and

(b)  the amount by which

i.  40.5% of the consideration paid to the qualified corporation in the year or a preceding taxation year for the performance of the dubbing contract in relation to the production of the property, exceeds

ii.  the amount by which the aggregate of all amounts each of which is the qualified film dubbing expenditure of the corporation in respect of the production of the property, for a taxation year preceding the year, exceeds 300% of the aggregate of all amounts each of which is tax that the corporation is required to pay under Part III.1.0.1 for a taxation year preceding the year in respect of the production of the property;

“qualified production” for a taxation year of a corporation means the dubbed version of a production in respect of which the Société de développement des entreprises culturelles certifies, on the certificate it issues to the corporation in respect of the dubbed version, that the dubbed version qualifies for the purposes of this division;

“salary or wages” means the income computed under Chapters I and II of Title II of Book III.

For the purposes of the definition of "film dubbing expenditure" in the first paragraph, the following rules apply:

(a)  for the purposes of paragraph b of that definition, the portion of the consideration paid by the corporation to a person or partnership with whom or with which the corporation was not dealing at arm’s length at the time the person or partnership undertook to provide eligible dubbing services as part of the production of the property shall not exceed the fair market value of the eligible dubbing services rendered in Québec by the person or partnership as part of the production of the property;

(b)  for the purposes of paragraph b of that definition, the portion of the consideration paid by the corporation for the provision of a service referred to in subparagraph vi of paragraph a of the definition of "eligible dubbing service" in the first paragraph is deemed to be equal to 30% of that portion of the consideration, and that portion of the consideration paid by the corporation for the provision of a service referred to in subparagraph vii of that paragraph a is deemed to be equal to 20% of that portion of the consideration;

(c)  for the purposes of paragraph b of that definition, the consideration paid by the corporation for the provision of eligible dubbing services shall not include the portion of that consideration that is the Québec sales tax or the goods and services tax in respect of those services;

(c.1)  no expenditure may be taken into consideration in computing the film dubbing expenditure of a corporation for a taxation year in respect of the production of a property, unless it is paid at the time the corporation first files with the Minister the prescribed form containing the prescribed information provided for in the first paragraph of section 1029.8.36.0.0.2 for that taxation year;

(d)  the amount of the film dubbing expenditure of a corporation for a taxation year in respect of the production of a property shall be reduced, where applicable, by the aggregate of

i.  the amount of any government assistance and non-government assistance attributable to that expenditure, that the corporation has received, is entitled to receive or may reasonably expect to receive on or before the corporation’s filing-due date for the year, and

ii.  the amount of any benefit or advantage attributable to that expenditure, whether in the form of a reimbursement, compensation or guarantee, in the form of proceeds of disposition of a property which exceed the fair market value of the property or in any other form or manner, that the corporation has obtained, is entitled to obtain or may reasonably expect to obtain on or before the corporation’s filing-due date for the year;

(e)  where, for a taxation year, a corporation is not a qualified corporation, its film dubbing expenditure for the year in respect of the production of a property is deemed to be nil.

For the purposes of subparagraph 2 of subparagraph i of paragraph a of the definition of "qualified film dubbing expenditure" in the first paragraph, an amount of assistance is deemed, in respect of the production of a property that is a qualified production, to be repaid by a corporation in a taxation year, pursuant to a legal obligation, where that amount

(a)  reduced, for the purpose of computing the amount that the corporation is deemed to have paid to the Minister for a taxation year under section 1029.8.36.0.0.2, in respect of the production of the property,

i.  because of subparagraph d of the second paragraph, a film dubbing expenditure of the corporation in respect of the production of the property, or

ii.  because of subparagraph ii of paragraph a of the definition of "qualified film dubbing expenditure" in the first paragraph, a qualified film dubbing expenditure of the corporation in respect of the production of the property;

(b)  was not received by the corporation; and

(c)  ceased in the taxation year to be an amount that the corporation may reasonably expect to receive.

For the purposes of subparagraph i of paragraph b of the definition of "qualified film dubbing expenditure" in the first paragraph, the following rules apply:

(a)  the consideration paid for the performance of a dubbing contract to the qualified corporation by a taxpayer with whom the corporation was not dealing at arm’s length at the time the contract was entered into shall not exceed the fair market value of the services rendered by the qualified corporation for the performance of the dubbing contract; and

(b)  the consideration paid for the performance of a dubbing contract to the qualified corporation shall not include the portion of that consideration that is the Québec sales tax or the goods and services tax in respect of that contract.

In the case of a production referred to in subparagraph a of the first paragraph of section 1029.8.36.0.0.2, the definition of "qualified film dubbing expenditure" in the first paragraph shall be read, in respect of that production, with "300%", wherever it appears, replaced by "342.85%".

1999, c. 83, s. 194; 2000, c. 5, s. 256; 2001, c. 7, s. 169; 2001, c. 51, s. 228; 2002, c. 9, s. 60; 2003, c. 9, s. 201; 2004, c. 21, s. 305; 2005, c. 1, s. 231.