I-3 - Taxation Act

Section 776.1.4 Disposition versions

2021-06-02

776.1.4. In no case may an individual deduct, for a taxation year, an amount under section 776.1.1 or 776.1.2 in respect of an amount paid by the individual for the purchase of a share referred to in section 776.1.1 if

(a)  the individual reached 45 years of age before the end of the year and availed himself of his right to retirement or early retirement;

(a.1)  where the purchased share is held by a trust governed by a registered retirement savings plan or registered retirement income fund under which the annuitant is the individual’s spouse or former spouse, the spouse or former spouse reached 45 years of age before the end of the year and availed himself of his right to retirement or early retirement;

(b)  the individual reached 65 years of age before the end of the year or would have reached that age before that time had the individual not died in the year;

(b.1)  where the purchased share is held by a trust governed by a registered retirement savings plan or registered retirement income fund under which the annuitant is the individual’s spouse or former spouse, the spouse or former spouse reached 65 years of age before the end of the year or would have reached that age before that time had the spouse or former spouse not died in the year;

(c)  during the year or within the following 120 days, a person requested redemption of the share in accordance with paragraph 4 of section 10 of the Act to establish the Fonds de solidarité des travailleurs du Québec (F.T.Q.) (chapter F-3.2.1); or

(d)  during the year or within the following 120 days, a person requested redemption of the share, or a class “A” share received in exchange for the share, in accordance with paragraph 4 of section 11 of the Act to establish Fondaction, le Fonds de développement de la Confédération des syndicats nationaux pour la coopération et l’emploi (chapter F-3.1.2).

For the purposes of subparagraphs a and a.1 of the first paragraph, an individual is deemed not to have availed himself of his right to retirement or early retirement at the end of a taxation year if

(a)  the aggregate of the individual’s pensionable salary and wages for the year, determined in accordance with section 45 of the Act respecting the Québec Pension Plan (chapter R-9) and as if that section were read without reference to subparagraph b of the second paragraph thereof, and the individual’s income for the year from a business exceeds the amount of Basic Exemption determined for the year in accordance with section 42 of that Act; and

(b)  the individual did not, before the end of the year, reach 65 years of age or obtain the redemption of a share under section 10 of the Act to establish the Fonds de solidarité des travailleurs du Québec (F.T.Q.) or section 11 of the Act to establish Fondaction, le Fonds de développement de la Confédération des syndicats nationaux pour la coopération et l’emploi.

The following rules apply for the purposes of subparagraph b of the second paragraph:

(a)  an individual is deemed to have obtained the redemption of a share under section 10 of the Act to establish the Fonds de solidarité des travailleurs du Québec (F.T.Q.) before the end of a taxation year ending after 31 December 2007 if the share was purchased before 20 December 2008 by the entity governed by that Act as a consequence of the application of any of the criteria of its purchase by agreement policy regarding early retirement or progressive retirement; and

(b)  an individual is deemed to have obtained the redemption of a share under section 11 of the Act to establish Fondaction, le Fonds de développement de la Confédération des syndicats nationaux pour la coopération et l’emploi before the end of a taxation year ending after 31 December 2008 if the share was purchased before 30 October 2009 by the entity governed by that Act as a consequence of the application of any of the criteria of its purchase by agreement policy regarding early retirement or progressive retirement.

1983, c. 44, s. 30; 1995, c. 63, s. 86; 1997, c. 14, s. 135; 1997, c. 85, s. 171; 2005, c. 1, s. 184; 2005, c. 38, s. 184; 2011, c. 6, s. 164; 2021, c. 15, s. 66.

2011-06-06

776.1.4. In no case may an individual deduct, for a taxation year, an amount under section 776.1.1 or 776.1.2 in respect of an amount paid by the individual for the purchase of a share referred to in section 776.1.1 if

(a)  the individual reached 45 years of age before the end of the year and availed himself of his right to retirement or early retirement;

(a.1)  where the purchased share is held by a trust governed by a registered retirement savings plan or registered retirement income fund under which the annuitant is the individual’s spouse, the spouse reached 45 years of age before the end of the year and availed himself of his right to retirement or early retirement;

(b)  the individual reached 65 years of age before the end of the year or would have reached that age before that time had the individual not died in the year;

(b.1)  where the purchased share is held by a trust governed by a registered retirement savings plan or registered retirement income fund under which the annuitant is the individual’s spouse, the spouse reached 65 years of age before the end of the year or would have reached that age before that time had the spouse not died in the year;

(c)  during the year or within the following 120 days, a person requested redemption of the share in accordance with paragraph 4 of section 10 of the Act to establish the Fonds de solidarité des travailleurs du Québec (F.T.Q.) (chapter F-3.2.1); or

(d)  during the year or within the following 120 days, a person requested redemption of the share, or a class “A” share received in exchange for the share, in accordance with paragraph 4 of section 11 of the Act to establish Fondaction, le Fonds de développement de la Confédération des syndicats nationaux pour la coopération et l’emploi (chapter F-3.1.2).

For the purposes of subparagraphs a and a.1 of the first paragraph, an individual is deemed not to have availed himself of his right to retirement or early retirement at the end of a taxation year if

(a)  the aggregate of the individual’s pensionable salary and wages for the year, determined in accordance with section 45 of the Act respecting the Québec Pension Plan (chapter R-9) and as if that section were read without reference to subparagraph b of the second paragraph thereof, and the individual’s income for the year from a business exceeds the amount of Basic Exemption determined for the year in accordance with section 42 of that Act; and

(b)  the individual did not, before the end of the year, reach 65 years of age or obtain the redemption of a share under section 10 of the Act to establish the Fonds de solidarité des travailleurs du Québec (F.T.Q.) or section 11 of the Act to establish Fondaction, le Fonds de développement de la Confédération des syndicats nationaux pour la coopération et l’emploi.

The following rules apply for the purposes of subparagraph b of the second paragraph:

(a)  an individual is deemed to have obtained the redemption of a share under section 10 of the Act to establish the Fonds de solidarité des travailleurs du Québec (F.T.Q.) before the end of a taxation year ending after 31 December 2007 if the share was purchased before 20 December 2008 by the entity governed by that Act as a consequence of the application of any of the criteria of its purchase by agreement policy regarding early retirement or progressive retirement; and

(b)  an individual is deemed to have obtained the redemption of a share under section 11 of the Act to establish Fondaction, le Fonds de développement de la Confédération des syndicats nationaux pour la coopération et l’emploi before the end of a taxation year ending after 31 December 2008 if the share was purchased before 30 October 2009 by the entity governed by that Act as a consequence of the application of any of the criteria of its purchase by agreement policy regarding early retirement or progressive retirement.

1983, c. 44, s. 30; 1995, c. 63, s. 86; 1997, c. 14, s. 135; 1997, c. 85, s. 171; 2005, c. 1, s. 184; 2005, c. 38, s. 184; 2011, c. 6, s. 164.

2006-03-01

776.1.4. In no case may an individual deduct, for a taxation year, an amount under section 776.1.1 or 776.1.2 in respect of an amount paid by the individual for the purchase of a share referred to in section 776.1.1 if

(a)  the individual reached 55 years of age before the end of the year and availed himself of his right to retirement or early retirement;

(a.1)  where the purchased share is held by a trust governed by a registered retirement savings plan or registered retirement income fund under which the annuitant is the individual’s spouse, the spouse reached 55 years of age before the end of the year and availed himself of his right to retirement or early retirement;

(b)  the individual reached 65 years of age before the end of the year or would have reached that age before that time had the individual not died in the year;

(b.1)  where the purchased share is held by a trust governed by a registered retirement savings plan or registered retirement income fund under which the annuitant is the individual’s spouse, the spouse reached 65 years of age before the end of the year or would have reached that age before that time had the spouse not died in the year;

(c)  during the year or within the following 120 days, a person requested redemption of the share in accordance with paragraph 4 of section 10 of the Act to establish the Fonds de solidarité des travailleurs du Québec (F.T.Q.) (chapter F-3.2.1); or

(d)  during the year or within the following 120 days, a person requested redemption of the share, or a class “A” share received in exchange for the share, in accordance with paragraph 4 of section 11 of the Act to establish Fondaction, le Fonds de développement de la Confédération des syndicats nationaux pour la coopération et l’emploi (chapter F-3.1.2).

For the purposes of subparagraphs a and a.1 of the first paragraph, an individual is deemed not to have availed himself of his right to retirement or early retirement at the end of a taxation year if

(a)  the aggregate of the individual’s pensionable salary and wages for the year, determined in accordance with section 45 of the Act respecting the Québec Pension Plan (chapter R-9) and as if that section were read without reference to subparagraph b of the second paragraph thereof, and the individual’s income for the year from a business exceeds the amount of Basic Exemption determined for the year in accordance with section 42 of that Act; and

(b)  the individual did not, before the end of the year, reach 65 years of age or obtain the redemption of a share under section 10 of the Act to establish the Fonds de solidarité des travailleurs du Québec (F.T.Q.) or section 11 of the Act to establish Fondaction, le Fonds de développement de la Confédération des syndicats nationaux pour la coopération et l’emploi.

1983, c. 44, s. 30; 1995, c. 63, s. 86; 1997, c. 14, s. 135; 1997, c. 85, s. 171; 2005, c. 1, s. 184; 2005, c. 38, s. 184.