I-3 - Taxation Act

Section 1049.32 Disposition versions

2011-06-06

1049.32. (Repealed).

1992, c. 1, s. 201; 1995, c. 1, s. 175; 1995, c. 63, s. 219; 1997, c. 3, s. 71; 1998, c. 17, s. 64; 2001, c. 69, s. 12; 2011, c. 6, s. 209.

2006-03-01

1049.32. Where a share or debenture, other than a share or debenture in respect of which tax has been paid or is payable under section 1129.14.1, issued as part of a qualified investment in respect of which the corporation having issued the share or debenture is deemed, under section 1029.8.36.2 as it read immediately prior to being repealed, to have paid an amount to the Minister, is assigned or transferred by a qualified investor to a person who is not a qualified investor and it may reasonably be considered that the qualified investment in the corporation was made primarily to enable it to benefit from the provisions of the said section 1029.8.36.2 in respect of that qualified investment, the qualified investor incurs a penalty equal to 30% of the amount of the qualified investment.

Notwithstanding the foregoing, where the qualified investor referred to in the first paragraph in respect of the qualified investment is not a corporation at the time of the assignment or transfer referred to in the first paragraph in respect of the qualified investment, the following rules apply:

(a)  every person who, at that time, is a member or participant of the qualified investor incurs a penalty equal to such proportion of the penalty that, but for subparagraph b, would be incurred pursuant to the first paragraph by the qualified investor in respect of the qualified investment as is represented by the ratio, at that time, between the financial interest of the person in the qualified investor and the financial interest in the qualified investor of all members or participants thereof;

(b)  the qualified investor is deemed not to incur the penalty contemplated in the first paragraph in respect of the qualified investment.

In this section, “qualified investor” has the meaning assigned by the Act to promote the capitalization of small and medium-sized businesses (chapter A-33.01), and “qualified investment” means a qualified investment, as defined in that Act, in respect of which a validation certificate has been issued under that Act by Investissement Québec.

1992, c. 1, s. 201; 1995, c. 1, s. 175; 1995, c. 63, s. 219; 1997, c. 3, s. 71; 1998, c. 17, s. 64; 2001, c. 69, s. 12.