I-3 - Taxation Act

Section 1029.8.36.166.3 Disposition versions

2012-05-09

1029.8.36.166.3. (Repealed).

2003, c. 9, s. 340; 2012, c. 8, s. 228.

2006-03-01

1029.8.36.166.3. The amount to which the definition of “expenditure in respect of technological equipment” in section 1029.8.36.166.1 refers in respect of a corporation for a taxation year is equal to the aggregate of all amounts each of which is an expenditure that is reasonable in the circumstances and that relates to the acquisition or leasing by the corporation of property that satisfies the conditions set out in the second paragraph, and each of which is

(a)  expenses incurred by the corporation in the year but in the period between 26 April 2000 and 1 January 2004, for the acquisition of such property in connection with the carrying out of an eligible activity of the corporation engaged in by the corporation in that period, and that are included in the capital cost of the property; or

(b)  expenses paid by the corporation in the year for the leasing of such property, if

i.  the lease contract in relation to the property is entered into after 26 April 2000 and before 1 January 2004,

ii.  the expenses are paid in respect of the two-year period following the beginning of the lease period for the property in relation to an eligible activity of the corporation engaged in by the corporation in the two-year period, and

iii.  the expenses are deductible in computing the income of the corporation under this Part.

The conditions to which the first paragraph refers in respect of a property acquired or leased by the corporation, as the case may be, are the following:

(a)  the property is computer equipment, including software or electronic communications equipment necessary for the carrying out of an eligible activity of the corporation;

(b)  before being acquired or leased by the corporation, the property has not been used for any purpose whatever or acquired for use or lease for any purpose whatever, except if the property is electronic communications equipment that the corporation acquired or leased from the Nasdaq Stock Exchange;

(c)  within reasonable time after being acquired or leased, the property begins to be used in connection with the carrying out of an eligible activity of the corporation;

(d)  the property is used exclusively or almost exclusively in connection with the carrying out of an eligible activity of the corporation;

(e)  the property is installed at an establishment of the corporation situated in Québec where the corporation engages in an eligible activity; and

(f)  in the case of property acquired by the corporation, the property is maintained at an establishment of the corporation situated in Québec where the corporation engages in an eligible activity, for a minimum period of two years after being installed.

2003, c. 9, s. 340.