I-3 - Taxation Act

Section 1029.8.36.7.1 Disposition versions

2019-12-11

1029.8.36.7.1. If the Minister of Economy and Innovation issues a certificate to a qualified partnership for a period of a fiscal period, in respect of a design activity in connection with a business it carries on in Québec, each qualified corporation that is a member of the qualified partnership at the end of that fiscal period and that encloses the documents referred to in the sixth paragraph with the fiscal return it is required to file under section 1000 for its taxation year in which the partnership’s fiscal period ends, is deemed, subject to the second paragraph, to have paid to the Minister on the corporation’s balance-due day for that year, on account of its tax payable for that year under this Part, an amount equal to 12% of its share of the aggregate of

(a)  the aggregate of all amounts each of which is the lesser of

i.  the wages incurred by the qualified partnership, as part of the design activity and in the period described in the certificate, in respect of a qualified designer who reports for work at an establishment of the qualified partnership situated in Québec, to the extent that the wages are paid and are reasonably attributable to the carrying out of the design activity in Québec in the period, and

ii.  $60,000; and

(b)  the aggregate of all amounts each of which is the lesser of

i.  the wages incurred by the qualified partnership, as part of a pattern drafting activity that derives from the design activity and in the period described in the certificate, in respect of a qualified patternmaker who reports for work at an establishment of the qualified partnership situated in Québec, to the extent that the wages are paid and are reasonably attributable to the carrying out of the pattern drafting activity in Québec in the period, and

ii.  $40,000.

For the purpose of computing the payments that a corporation referred to in the first paragraph is required to make under subparagraph a of the first paragraph of section 1027, or any of sections 1145, 1159.7, 1175 and 1175.19 where they refer to that subparagraph a, for its taxation year in which the fiscal period of the qualified partnership ends, the corporation is deemed to have paid to the Minister, on account of the aggregate of its tax payable for the year under this Part and of its tax payable for the year under Parts IV, IV.1, VI and VI.1, on the date on or before which each payment is required to be made, an amount equal to the lesser of

(a)  the amount by which the amount determined under the first paragraph for the year exceeds the aggregate of all amounts each of which is the portion of that amount that may reasonably be considered to be deemed to have been paid to the Minister under this paragraph in the year but before that date; and

(b)  the amount by which the amount of that payment, determined without reference to this chapter, exceeds the aggregate of all amounts each of which is an amount that is deemed, under this chapter but otherwise than under the first paragraph, to have been paid to the Minister on that date, for the purpose of computing that payment.

The first paragraph applies with reference to the following rules:

(a)  if wages incurred in a fiscal period are reasonably attributable to the carrying out of a design activity or pattern drafting activity in a fiscal period subsequent to the fiscal period, the wages are deemed to be incurred in that subsequent fiscal period;

(b)  if wages incurred in a period, in respect of a qualified designer or qualified patternmaker, are attributable, in a proportion of at least 90%, to the carrying out of a design activity or pattern drafting activity, as the case may be, the wages are deemed to be wholly attributable to that design activity or pattern drafting activity; and

(c)  a qualified corporation’s share of wages incurred by a qualified partnership of which the qualified corporation is a member is equal to the agreed proportion of the wages in respect of the qualified corporation for the partnership’s fiscal period that ends in its taxation year.

However, the first paragraph does not apply where the amount that would be the qualified partnership’s gross revenue for the fiscal period from the carrying on of the business referred to in that paragraph, if, for the purposes of the definition of “gross revenue” in section 1, the qualified partnership were a corporation, is less than $150,000 or, where the qualified partnership’s fiscal period has fewer than 52 weeks, less than the amount obtained by multiplying $150,000 by the proportion that the number of weeks in the fiscal period is of 52.

For the purposes of subparagraph ii of subparagraphs a and b of the first paragraph, the amount of $60,000 or $40,000 is to be replaced by the amount obtained by multiplying that amount by the proportion that the number of days during which the qualified designer or qualified patternmaker is an employee of the qualified partnership in the period referred to in subparagraph i of that subparagraph a or b, is of 365.

The documents to which the first paragraph refers are

(a)  the prescribed form containing the prescribed information;

(b)  a copy of the certificate issued for a period of the fiscal period to the qualified partnership by the Minister of Economy and Innovation; and

(c)  a copy of any certificate of qualification issued by the Minister of Economy and Innovation to a qualified designer or qualified patternmaker referred to in the first paragraph.

2006, c. 13, s. 139; 2009, c. 15, s. 259; 2015, c. 21, s. 449; 2019, c. 14, s. 355; 2019, c. 29, s. 1.

2019-06-19

1029.8.36.7.1. If the Minister of Economic Development, Innovation and Export Trade issues a certificate to a qualified partnership for a period of a fiscal period, in respect of a design activity in connection with a business it carries on in Québec, each qualified corporation that is a member of the qualified partnership at the end of that fiscal period and that encloses the documents referred to in the sixth paragraph with the fiscal return it is required to file under section 1000 for its taxation year in which the partnership’s fiscal period ends, is deemed, subject to the second paragraph, to have paid to the Minister on the corporation’s balance-due day for that year, on account of its tax payable for that year under this Part, an amount equal to 12% of its share of the aggregate of

(a)  the aggregate of all amounts each of which is the lesser of

i.  the wages incurred by the qualified partnership, as part of the design activity and in the period described in the certificate, in respect of a qualified designer who reports for work at an establishment of the qualified partnership situated in Québec, to the extent that the wages are paid and are reasonably attributable to the carrying out of the design activity in Québec in the period, and

ii.  $60,000; and

(b)  the aggregate of all amounts each of which is the lesser of

i.  the wages incurred by the qualified partnership, as part of a pattern drafting activity that derives from the design activity and in the period described in the certificate, in respect of a qualified patternmaker who reports for work at an establishment of the qualified partnership situated in Québec, to the extent that the wages are paid and are reasonably attributable to the carrying out of the pattern drafting activity in Québec in the period, and

ii.  $40,000.

For the purpose of computing the payments that a corporation referred to in the first paragraph is required to make under subparagraph a of the first paragraph of section 1027, or any of sections 1145, 1159.7, 1175 and 1175.19 where they refer to that subparagraph a, for its taxation year in which the fiscal period of the qualified partnership ends, the corporation is deemed to have paid to the Minister, on account of the aggregate of its tax payable for the year under this Part and of its tax payable for the year under Parts IV, IV.1, VI and VI.1, on the date on or before which each payment is required to be made, an amount equal to the lesser of

(a)  the amount by which the amount determined under the first paragraph for the year exceeds the aggregate of all amounts each of which is the portion of that amount that may reasonably be considered to be deemed to have been paid to the Minister under this paragraph in the year but before that date; and

(b)  the amount by which the amount of that payment, determined without reference to this chapter, exceeds the aggregate of all amounts each of which is an amount that is deemed, under this chapter but otherwise than under the first paragraph, to have been paid to the Minister on that date, for the purpose of computing that payment.

The first paragraph applies with reference to the following rules:

(a)  if wages incurred in a fiscal period are reasonably attributable to the carrying out of a design activity or pattern drafting activity in a fiscal period subsequent to the fiscal period, the wages are deemed to be incurred in that subsequent fiscal period;

(b)  if wages incurred in a period, in respect of a qualified designer or qualified patternmaker, are attributable, in a proportion of at least 90%, to the carrying out of a design activity or pattern drafting activity, as the case may be, the wages are deemed to be wholly attributable to that design activity or pattern drafting activity; and

(c)  a qualified corporation’s share of wages incurred by a qualified partnership of which the qualified corporation is a member is equal to the agreed proportion of the wages in respect of the qualified corporation for the partnership’s fiscal period that ends in its taxation year.

However, the first paragraph does not apply where the amount that would be the qualified partnership’s gross revenue for the fiscal period from the carrying on of the business referred to in that paragraph, if, for the purposes of the definition of “gross revenue” in section 1, the qualified partnership were a corporation, is less than $150,000 or, where the qualified partnership’s fiscal period has fewer than 52 weeks, less than the amount obtained by multiplying $150,000 by the proportion that the number of weeks in the fiscal period is of 52.

For the purposes of subparagraph ii of subparagraphs a and b of the first paragraph, the amount of $60,000 or $40,000 is to be replaced by the amount obtained by multiplying that amount by the proportion that the number of days during which the qualified designer or qualified patternmaker is an employee of the qualified partnership in the period referred to in subparagraph i of that subparagraph a or b, is of 365.

The documents to which the first paragraph refers are

(a)  the prescribed form containing the prescribed information;

(b)  a copy of the certificate issued for a period of the fiscal period to the qualified partnership by the Minister of Economic Development, Innovation and Export Trade; and

(c)  a copy of any certificate of qualification issued by the Minister of Economic Development, Innovation and Export Trade to a qualified designer or qualified patternmaker referred to in the first paragraph.

2006, c. 13, s. 139; 2009, c. 15, s. 259; 2015, c. 21, s. 449; 2019, c. 14, s. 355.

2015-10-21

1029.8.36.7.1. If the Minister of Economic Development, Innovation and Export Trade issues a certificate to a qualified partnership for a period of a fiscal period, in respect of a design activity in connection with a business it carries on in Québec, each qualified corporation that is a member of the qualified partnership at the end of that fiscal period and that encloses the documents referred to in the sixth paragraph with the fiscal return it is required to file under section 1000 for its taxation year in which the partnership’s fiscal period ends, is deemed, subject to the second paragraph, to have paid to the Minister on the corporation’s balance-due day for that year, on account of its tax payable for that year under this Part, an amount equal to 12% of its share of the aggregate of

(a)  the aggregate of all amounts each of which is the lesser of

i.  the wages incurred by the qualified partnership, as part of the design activity and in the period described in the certificate, in respect of a qualified designer who reports for work at an establishment of the qualified partnership situated in Québec, to the extent that the wages are paid and

(1)  are reasonably attributable to the carrying out of the design activity in Québec in the period, and

(2)  are reasonable in the circumstances, and

ii.  $60,000; and

(b)  the aggregate of all amounts each of which is the lesser of

i.  the wages incurred by the qualified partnership, as part of a pattern drafting activity that derives from the design activity and in the period described in the certificate, in respect of a qualified patternmaker who reports for work at an establishment of the qualified partnership situated in Québec, to the extent that the wages are paid and

(1)  are reasonably attributable to the carrying out of the pattern drafting activity in Québec in the period, and

(2)  are reasonable in the circumstances, and

ii.  $40,000.

For the purpose of computing the payments that a corporation referred to in the first paragraph is required to make under subparagraph a of the first paragraph of section 1027, or any of sections 1145, 1159.7, 1175 and 1175.19 where they refer to that subparagraph a, for its taxation year in which the fiscal period of the qualified partnership ends, the corporation is deemed to have paid to the Minister, on account of the aggregate of its tax payable for the year under this Part and of its tax payable for the year under Parts IV, IV.1, VI and VI.1, on the date on or before which each payment is required to be made, an amount equal to the lesser of

(a)  the amount by which the amount determined under the first paragraph for the year exceeds the aggregate of all amounts each of which is the portion of that amount that may reasonably be considered to be deemed to have been paid to the Minister under this paragraph in the year but before that date; and

(b)  the amount by which the amount of that payment, determined without reference to this chapter, exceeds the aggregate of all amounts each of which is an amount that is deemed, under this chapter but otherwise than under the first paragraph, to have been paid to the Minister on that date, for the purpose of computing that payment.

The first paragraph applies with reference to the following rules:

(a)  if wages incurred in a fiscal period are reasonably attributable to the carrying out of a design activity or pattern drafting activity in a fiscal period subsequent to the fiscal period, the wages are deemed to be incurred in that subsequent fiscal period;

(b)  if wages incurred in a period, in respect of a qualified designer or qualified patternmaker, are attributable, in a proportion of at least 90%, to the carrying out of a design activity or pattern drafting activity, as the case may be, the wages are deemed to be wholly attributable to that design activity or pattern drafting activity; and

(c)  a qualified corporation’s share of wages incurred by a qualified partnership of which the qualified corporation is a member is equal to the agreed proportion of the wages in respect of the qualified corporation for the partnership’s fiscal period that ends in its taxation year.

However, the first paragraph does not apply where the amount that would be the qualified partnership’s gross revenue for the fiscal period from the carrying on of the business referred to in that paragraph, if, for the purposes of the definition of “gross revenue” in section 1, the qualified partnership were a corporation, is less than $150,000 or, where the qualified partnership’s fiscal period has fewer than 52 weeks, less than the amount obtained by multiplying $150,000 by the proportion that the number of weeks in the fiscal period is of 52.

For the purposes of subparagraph ii of subparagraphs a and b of the first paragraph, the amount of $60,000 or $40,000 is to be replaced by the amount obtained by multiplying that amount by the proportion that the number of days during which the qualified designer or qualified patternmaker is an employee of the qualified partnership in the period referred to in subparagraph i of that subparagraph a or b, is of 365.

The documents to which the first paragraph refers are

(a)  the prescribed form containing the prescribed information;

(b)  a copy of the certificate issued for a period of the fiscal period to the qualified partnership by the Minister of Economic Development, Innovation and Export Trade; and

(c)  a copy of any certificate of qualification issued by the Minister of Economic Development, Innovation and Export Trade to a qualified designer or qualified patternmaker referred to in the first paragraph.

2006, c. 13, s. 139; 2009, c. 15, s. 259; 2015, c. 21, s. 449.

2009-06-04

1029.8.36.7.1. If the Minister of Economic Development, Innovation and Export Trade issues a certificate to a qualified partnership for a period of a fiscal period, in respect of a design activity in connection with a business it carries on in Québec, each qualified corporation that is a member of the qualified partnership at the end of that fiscal period and that encloses the documents referred to in the sixth paragraph with the fiscal return it is required to file under section 1000 for its taxation year in which the partnership’s fiscal period ends, is deemed, subject to the second paragraph, to have paid to the Minister on the corporation’s balance-due day for that year, on account of its tax payable for that year under this Part, an amount equal to 15% of its share of the aggregate of

(a)  the aggregate of all amounts each of which is the lesser of

i.  the wages incurred by the qualified partnership, as part of the design activity and in the period described in the certificate, in respect of a qualified designer who reports for work at an establishment of the qualified partnership situated in Québec, to the extent that the wages are paid and

(1)  are reasonably attributable to the carrying out of the design activity in Québec in the period, and

(2)  are reasonable in the circumstances, and

ii.  $60,000; and

(b)  the aggregate of all amounts each of which is the lesser of

i.  the wages incurred by the qualified partnership, as part of a pattern drafting activity that derives from the design activity and in the period described in the certificate, in respect of a qualified patternmaker who reports for work at an establishment of the qualified partnership situated in Québec, to the extent that the wages are paid and

(1)  are reasonably attributable to the carrying out of the pattern drafting activity in Québec in the period, and

(2)  are reasonable in the circumstances, and

ii.  $40,000.

For the purpose of computing the payments that a corporation referred to in the first paragraph is required to make under subparagraph a of the first paragraph of section 1027, or any of sections 1145, 1159.7, 1175 and 1175.19 where they refer to that subparagraph a, for its taxation year in which the fiscal period of the qualified partnership ends, the corporation is deemed to have paid to the Minister, on account of the aggregate of its tax payable for the year under this Part and of its tax payable for the year under Parts IV, IV.1, VI and VI.1, on the date on or before which each payment is required to be made, an amount equal to the lesser of

(a)  the amount by which the amount determined under the first paragraph for the year exceeds the aggregate of all amounts each of which is the portion of that amount that may reasonably be considered to be deemed to have been paid to the Minister under this paragraph in the year but before that date; and

(b)  the amount by which the amount of that payment, determined without reference to this chapter, exceeds the aggregate of all amounts each of which is an amount that is deemed, under this chapter but otherwise than under the first paragraph, to have been paid to the Minister on that date, for the purpose of computing that payment.

The first paragraph applies with reference to the following rules:

(a)  if wages incurred in a fiscal period are reasonably attributable to the carrying out of a design activity or pattern drafting activity in a fiscal period subsequent to the fiscal period, the wages are deemed to be incurred in that subsequent fiscal period;

(b)  if wages incurred in a period, in respect of a qualified designer or qualified patternmaker, are attributable, in a proportion of at least 90%, to the carrying out of a design activity or pattern drafting activity, as the case may be, the wages are deemed to be wholly attributable to that design activity or pattern drafting activity; and

(c)  a qualified corporation’s share of wages incurred by a qualified partnership of which the qualified corporation is a member is equal to the agreed proportion of the wages in respect of the qualified corporation for the partnership’s fiscal period that ends in its taxation year.

However, the first paragraph does not apply where the amount that would be the qualified partnership’s gross revenue for the fiscal period from the carrying on of the business referred to in that paragraph, if, for the purposes of the definition of “gross revenue” in section 1, the qualified partnership were a corporation, is less than $150,000 or, where the qualified partnership’s fiscal period has fewer than 52 weeks, less than the amount obtained by multiplying $150,000 by the proportion that the number of weeks in the fiscal period is of 52.

For the purposes of subparagraph ii of subparagraphs a and b of the first paragraph, the amount of $60,000 or $40,000 is to be replaced by the amount obtained by multiplying that amount by the proportion that the number of days during which the qualified designer or qualified patternmaker is an employee of the qualified partnership in the period referred to in subparagraph i of that subparagraph a or b, is of 365.

The documents to which the first paragraph refers are

(a)  the prescribed form containing the prescribed information;

(b)  a copy of the certificate issued for a period of the fiscal period to the qualified partnership by the Minister of Economic Development, Innovation and Export Trade; and

(c)  a copy of any certificate of qualification issued by the Minister of Economic Development, Innovation and Export Trade to a qualified designer or qualified patternmaker referred to in the first paragraph.

2006, c. 13, s. 139; 2009, c. 15, s. 259.

2006-06-13

1029.8.36.7.1. If the Minister of Economic Development, Innovation and Export Trade issues a certificate to a qualified partnership for a period of a fiscal period, in respect of a design activity in connection with a business it carries on in Québec, each qualified corporation that is a member of the qualified partnership at the end of that fiscal period and that encloses the documents referred to in the sixth paragraph with the fiscal return it is required to file under section 1000 for its taxation year in which the partnership’s fiscal period ends, is deemed, subject to the second paragraph, to have paid to the Minister on the corporation’s balance-due day for that year, on account of its tax payable for that year under this Part, an amount equal to 15% of its share of the aggregate of

(a)  the aggregate of all amounts each of which is the lesser of

i.  the wages incurred by the qualified partnership, as part of the design activity and in the period described in the certificate, in respect of a qualified designer who reports for work at an establishment of the qualified partnership situated in Québec, to the extent that the wages are paid and

(1)  are reasonably attributable to the carrying out of the design activity in Québec in the period, and

(2)  are reasonable in the circumstances, and

ii.  $60,000; and

(b)  the aggregate of all amounts each of which is the lesser of

i.  the wages incurred by the qualified partnership, as part of a pattern drafting activity that derives from the design activity and in the period described in the certificate, in respect of a qualified patternmaker who reports for work at an establishment of the qualified partnership situated in Québec, to the extent that the wages are paid and

(1)  are reasonably attributable to the carrying out of the pattern drafting activity in Québec in the period, and

(2)  are reasonable in the circumstances, and

ii.  $40,000.

For the purpose of computing the payments that a corporation referred to in the first paragraph is required to make under subparagraph a of the first paragraph of section 1027, or any of sections 1145, 1159.7, 1175 and 1175.19 where they refer to that subparagraph a, for its taxation year in which the fiscal period of the qualified partnership ends, the corporation is deemed to have paid to the Minister, on account of the aggregate of its tax payable for the year under this Part and of its tax payable for the year under Parts IV, IV.1, VI and VI.1, on the date on or before which each payment is required to be made, an amount equal to the lesser of

(a)  the amount by which the amount determined under the first paragraph for the year exceeds the aggregate of all amounts each of which is the portion of that amount that may reasonably be considered to be deemed to have been paid to the Minister under this paragraph in the year but before that date; and

(b)  the amount by which the amount of that payment, determined without reference to this chapter, exceeds the aggregate of all amounts each of which is an amount that is deemed, under this chapter but otherwise than under the first paragraph, to have been paid to the Minister on that date, for the purpose of computing that payment.

The first paragraph applies with reference to the following rules:

(a)  if wages incurred in a fiscal period are reasonably attributable to the carrying out of a design activity or pattern drafting activity in a fiscal period subsequent to the fiscal period, the wages are deemed to be incurred in that subsequent fiscal period;

(b)  if wages incurred in a period, in respect of a qualified designer or qualified patternmaker, are attributable, in a proportion of at least 90%, to the carrying out of a design activity or pattern drafting activity, as the case may be, the wages are deemed to be wholly attributable to that design activity or pattern drafting activity; and

(c)  the share of a qualified corporation of wages incurred by a qualified partnership of which it is a member is equal to the proportion of that expenditure that the share of the qualified corporation of the income or loss of the partnership for the fiscal period of the partnership ending in its taxation year is of the income or loss of the partnership for that fiscal period, on the assumption that, if the income and loss of the partnership for that fiscal period are nil, the partnership’s income for that fiscal period is equal to $1,000,000.

However, the first paragraph does not apply where the amount that would be the qualified partnership’s gross revenue for the fiscal period from the carrying on of the business referred to in that paragraph, if, for the purposes of the definition of “gross revenue” in section 1, the qualified partnership were a corporation, is less than $150,000 or, where the qualified partnership’s fiscal period has fewer than 52 weeks, less than the amount obtained by multiplying $150,000 by the proportion that the number of weeks in the fiscal period is of 52.

For the purposes of subparagraph ii of subparagraphs a and b of the first paragraph, the amount of $60,000 or $40,000 is to be replaced by the amount obtained by multiplying that amount by the proportion that the number of days during which the qualified designer or qualified patternmaker is an employee of the qualified partnership in the period referred to in subparagraph i of that subparagraph a or b, is of 365.

The documents to which the first paragraph refers are

(a)  the prescribed form containing the prescribed information;

(b)  a copy of the certificate issued for a period of the fiscal period to the qualified partnership by the Minister of Economic Development, Innovation and Export Trade; and

(c)  a copy of any certificate of qualification issued by the Minister of Economic Development, Innovation and Export Trade to a qualified designer or qualified patternmaker referred to in the first paragraph.

2006, c. 13, s. 139.