I-3 - Taxation Act

Section 1029.8.19.3.1 Disposition versions

2007-11-07

1029.8.19.3.1. (Repealed).

2002, c. 40, s. 110; 2003, c. 9, s. 186; 2004, c. 21, s. 279; 2007, c. 12, s. 137.

2006-03-01

1029.8.19.3.1. Where, in relation to a project referred to in the first paragraph of section 1029.8.19.2 and in respect of which the scientific research and experimental development is undertaken, in whole or in part, on behalf of a corporation or a partnership of which the corporation is a member, by an eligible public research centre, within the meaning of paragraph a.1 of section 1029.8.1, or by an eligible university entity, within the meaning of paragraph f of that section, the corporation obtained a contribution referred to in the third paragraph, the following rules apply:

(a)  notwithstanding the first paragraph of that section 1029.8.19.2, the corporation shall, in relation to the project or the carrying out thereof, be deemed to have paid to the Minister an amount under section 1029.7 or 1029.8, in respect of the portion of a consideration referred to in subparagraph c or g of the first paragraph of those sections, or under section 1029.8.6 or 1029.8.7, if, but for the first paragraph of section 1029.8.19.2, an amount would have been deemed to be paid to the Minister, in relation to the project or the carrying out thereof, under section 1029.7 or 1029.8, in respect of the portion of such a consideration, or under section 1029.8.6 or 1029.8.7; and

(b)  for the purpose of determining the amount that the corporation is deemed to have paid to the Minister for a taxation year under section 1029.7 or 1029.8, in respect of the portion of a consideration referred to in subparagraph c or g of the first paragraph of those sections, or under section 1029.8.6 or 1029.8.7, the amount of the portion of the consideration or, as the case may be, the amount of the qualified expenditure shall be reduced by the portion of the contribution referred to in the third paragraph that is reasonably attributable to the scientific research or experimental development undertaken on behalf of the corporation or the partnership of which the corporation is a member, in respect of the project or the carrying out thereof.

Where, in relation to a contract referred to in the second paragraph of section 1029.8.19.2 and in respect of which the scientific research and experimental development is undertaken, in whole or in part, on behalf of a corporation or a partnership of which the corporation is a member, by an eligible public research centre or an eligible university entity, the corporation has obtained a contribution referred to in the third paragraph, the following rules apply:

(a)  notwithstanding the second paragraph of that section 1029.8.19.2, the corporation shall, in relation to the contract or the performance thereof, be deemed to have paid to the Minister an amount under section 1029.7 or 1029.8, in respect of the portion of a consideration referred to in subparagraph e or i of the first paragraph of those sections, if, but for the second paragraph of section 1029.8.19.2, an amount would have been deemed to be paid to the Minister under section 1029.7 or 1029.8, in relation to the contract or the performance thereof, in respect of the portion of such a consideration; and

(b)  for the purpose of determining the amount that the corporation is deemed to have paid to the Minister for a taxation year under section 1029.7 or 1029.8, in relation to the contract or the performance thereof, in respect of the portion of a consideration referred to in subparagraph e or i of the first paragraph of those sections, the amount of the portion of the consideration shall be reduced by the portion of the contribution referred to in the third paragraph that is reasonably attributable to the scientific research or experimental development undertaken on behalf of the corporation or the partnership of which the corporation is a member, in respect of the contract or the performance thereof.

The contribution to which the first paragraph refers, in respect of a scientific research and experimental development project or the carrying out thereof, or to which the second paragraph refers, in respect of a contract for work relating to scientific research and experimental development or in respect of the performance thereof, is

(a)  an amount that the corporation has received at a particular time from an eligible public research centre, an eligible university entity, a person with whom or with which such a centre or entity is not dealing at arm’s length at the particular time, a partnership of which such a centre or entity is a member, or any person designated by the Minister in accordance with section 1029.8.19.2, in payment of the shares with full voting rights of the capital stock of the corporation subscribed by the centre, entity, person or partnership, as the case may be, as part of that project or the carrying out thereof or as part of the contract or the performance thereof; and

(b)  a qualified financing granted to the corporation at a particular time by an eligible public research centre, an eligible university entity, a person with whom or with which such a centre or entity is not dealing at arm’s length at the particular time, a partnership of which such a centre or entity is a member, or any person designated by the Minister in accordance with section 1029.8.19.2.

2002, c. 40, s. 110; 2003, c. 9, s. 186; 2004, c. 21, s. 279.