I-3 - Taxation Act

Section 1029.8.36.0.3.60 Disposition versions

2021-06-04

1029.8.36.0.3.60. (Repealed).

2003, c. 9, s. 219; 2004, c. 21, s. 330; 2005, c. 23, s. 164; 2006, c. 13, s. 126; 2021, c. 18, s. 119.

2006-06-13

1029.8.36.0.3.60. In this division,

“base amount” of a corporation, in relation to a particular recognized business, means

(a)  except in respect of a corporation that results from an amalgamation, an amount equal to zero, where, at no time in its base period in relation to the particular recognized business, the corporation carried on a business in Québec in the sectors of activity described in any of paragraphs a to c of the definition of “recognized business” ; and

(b)  in any other case, the aggregate of all amounts each of which is

i.  the salary or wages paid by the corporation to an employee in the course of carrying on the particular recognized business, in respect of a pay period, within its base period, in relation to the particular recognized business, for which the employee is an eligible employee, or

ii.  the salary or wages of an employee who reports for work at an establishment of the corporation situated in Québec but outside an eligible site, other than an excluded employee of the corporation, that were paid by the corporation, in the course of carrying on any given business in respect of a pay period, within its base period, in relation to the particular recognized business, throughout which the employee spends, when at work, at least 90% of the time in undertaking, supervising or supporting, in an establishment of the corporation situated in Québec or elsewhere, but in connection with the mandates attributable to such an establishment, work that is directly related to activities of the corporation that are described in any of paragraphs a to c of the definition of “recognized business”, except if an amount is included, in respect of the employee, in relation to the given business, in computing the base amount of the corporation in relation to another recognized business;

“base period” of a corporation, in relation to a recognized business, means the calendar year preceding the calendar year in which the eligibility period of a corporation in relation to the recognized business begins;

“designated site” means premises designated by Investissement Québec for the purposes of this division;

“eligibility period” of a corporation, in relation to a recognized business, means, subject to the second paragraph, the five-year period that begins on 1 January of the first calendar year, preceding the calendar year 2004, in respect of which the corporation obtains its qualification certificate, in relation to the recognized business;

“eligible amount” of a corporation for a calendar year means the aggregate of all amounts each of which is

(a)  the salary or wages paid by the corporation to an employee in respect of a pay period, within the year, for which the employee is an eligible employee, in relation to a recognized business of the corporation; or

(b)  the salary or wages of an employee who reports for work at an establishment of the corporation situated in Québec, other than an employee referred to in paragraph a or an excluded employee of the corporation, that were paid by the corporation in respect of a pay period, within the year, throughout which the employee spends, when at work, at least 90% of the time in undertaking, supervising or supporting, in an establishment of the corporation situated in Québec or elsewhere, but in connection with the mandates attributable to such an establishment, work that is directly related to activities of the corporation that are described in any of paragraphs a to c of the definition of “recognized business” ;

“eligible employee” of a corporation for a pay period of a calendar year, in relation to a recognized business, means an employee, other than an excluded employee at any time in that period, in respect of whom a qualification certificate is issued to the corporation for the year by Investissement Québec for the purposes of this division, certifying that the employee is an eligible employee of the corporation for the pay period, in relation to the recognized business;

“eligible repayment of assistance” for a taxation year of a qualified corporation means the aggregate of

(a)  where the qualified corporation pays in the taxation year, pursuant to a legal obligation, an amount that may reasonably be considered to be a repayment of assistance referred to in subparagraph i of subparagraph a of the first paragraph of section 1029.8.36.0.3.65 that reduced the amount of the salary or wages paid by the qualified corporation to an employee, for the purpose of computing the amount referred to in subparagraph a of the first paragraph of section 1029.8.36.0.3.61 that relates to a calendar year preceding the calendar year ending in the taxation year, the amount by which the amount that would have been determined under that subparagraph a in respect of the qualified corporation in relation to the preceding calendar year if each of the amounts of assistance paid in respect of the salary or wages had been reduced by any amount paid by the qualified corporation, in respect of such an amount of assistance, as repayment in the taxation year or a preceding taxation year, exceeds the aggregate of

i.  the amount determined under subparagraph a of the first paragraph of section 1029.8.36.0.3.61 in respect of the qualified corporation in relation to the preceding calendar year, and

ii.  the aggregate of all amounts determined for a taxation year preceding the taxation year under this paragraph in relation to a repayment of assistance;

(b)  where a corporation pays in a calendar year ending in the taxation year, pursuant to a legal obligation, an amount that may reasonably be considered to be a repayment of assistance referred to in subparagraph i of subparagraph a of the first paragraph of section 1029.8.36.0.3.65 that reduced the amount of the salary or wages paid by the corporation to an employee, for the purpose of computing the amount referred to in subparagraph a of the first paragraph of section 1029.8.36.0.3.62 that relates to a calendar year preceding the calendar year in relation to the qualified corporation at the end of which the qualified corporation was not associated with any other qualified corporation that was carrying on a recognized business for its taxation year in which the preceding calendar year ended, the amount by which the amount that would have been determined under that subparagraph a in respect of the qualified corporation in relation to the preceding calendar year if each of the amounts of assistance paid in respect of the salary or wages had been reduced by any amount paid, in respect of such an amount of assistance, as repayment in the calendar year or a preceding calendar year, exceeds the aggregate of

i.  the amount determined under subparagraph a of the first paragraph of section 1029.8.36.0.3.62 in respect of the qualified corporation in relation to the preceding calendar year, and

ii.  the aggregate of all amounts determined for a calendar year preceding the calendar year under this paragraph in relation to a repayment of assistance; and

(c)  where a qualified corporation pays in a calendar year ending in the taxation year, pursuant to a legal obligation, an amount that may reasonably be considered to be a repayment of assistance referred to in subparagraph i of subparagraph b of the first paragraph of section 1029.8.36.0.3.65 that reduced the amount of the salary or wages paid by the qualified corporation to an employee, for the purpose of computing the excess amount referred to in paragraph a or c of section 1029.8.36.0.3.63 determined, in respect of a calendar year preceding the calendar year, in relation to all of the corporations that were associated with each other at the end of that preceding calendar year and with which the qualified corporation was associated at that time, the amount by which the amount that would have been determined under subparagraph a of the first paragraph of section 1029.8.36.0.3.62 in respect of the qualified corporation in relation to the preceding calendar year if, for the purposes of paragraph a or c of section 1029.8.36.0.3.63, as the case may be, in relation to that preceding calendar year, each of the amounts of assistance in respect of the salary or wages had been reduced by any amount paid, in respect of such an amount of assistance, as repayment in the calendar year or a preceding calendar year, and if the amount determined pursuant to section 1029.8.36.0.3.63 had been attributed to a qualified corporation in the same proportion as that determined in its respect in relation to the preceding calendar year, exceeds the aggregate of

i.  the amount determined under subparagraph a of the first paragraph of section 1029.8.36.0.3.62 in respect of the qualified corporation in relation to the preceding calendar year, and

ii.  the aggregate of all amounts determined for a calendar year preceding the calendar year under this paragraph in relation to a repayment of assistance;

“excluded employee” at a particular time means an employee of a corporation who, at that time, is

(a)  a foreign specialist, within the meaning of section 737.22.0.1, where the corporation is an eligible employer referred to in paragraph c of the definition of foreign specialist in that section or in paragraph d of that definition if the corporation carries on a business in the Centre national des nouvelles technologies de Québec, within the meaning of the first paragraph of section 1029.8.36.0.17;

(b)  an eligible employee of the corporation, within the meaning of the first paragraph of section 1029.8.36.0.3.38, as it read before being repealed, or a specified employee of the corporation, within the meaning of the first paragraph of section 1029.8.36.0.17, if the corporation carries on a business in the Centre national des nouvelles technologies de Québec; or

(c)  a specified shareholder of that corporation or, where the corporation is a cooperative, a specified member of that corporation;

“qualified corporation”, for a calendar year, means a corporation that, in the year, carries on a qualified business in Québec and has an establishment in Québec, but does not include

(a)  a corporation that is exempt from tax under Book VIII for the taxation year in which the calendar year ends;

(b)  a corporation that would be exempt from tax for the taxation year in which the calendar year ends under section 985 but for section 192; or

(c)  a corporation control of which is acquired at any time in the calendar year or a preceding calendar year, but after 11 June 2003, by a person or group of persons, unless the acquisition of control

i.  occurs before 1 July 2004 and Investissement Québec certifies that it results from a transaction that was sufficiently advanced on 11 June 2003 and was binding on the parties on that date,

ii.  is by a corporation carrying on at that time a recognized business, by a person or group of persons that controls such a corporation, or by a group of persons each member of which is such a corporation or a person who, alone or together with other members of the group, controls such a corporation,

iii.  derives from the exercise after 11 June 2003 of one or more rights described in paragraph b of section 20 that were acquired before 12 June 2003, or

iv.  derives from the performance after 11 June 2003 of one or more obligations described in the third paragraph of section 21.3.5 that were contracted before 12 June 2003;

“recognized business” of a corporation for a taxation year means a business carried on by the corporation in the year in respect of which a qualification certificate is issued by Investissement Québec for the purposes of this division, certifying that its activities are

(a)  activities of developing and supplying products and services relating to e-business;

(b)  activities relating to the operation of e-business solutions; or

(c)  activities of a client contact centre;

“salary or wages” means the income computed pursuant to Chapters I and II of Title II of Book III, but does not include directors’ fees, premiums, incentive bonuses, compensation for hours worked in addition to normal working hours, commissions or benefits referred to in Division II of Chapter II of Title II of Book III;

“specified member” of a corporation that is a cooperative, in a taxation year, means a member having, directly or indirectly, at any time in the year, at least 10% of the votes at a meeting of the members of the cooperative.

Except where section 1029.8.36.0.3.67 or 1029.8.36.0.3.68 applies, where, in a taxation year, a corporation carries on a business in respect of which a qualification certificate has been issued by Investissement Québec and, in the opinion of Investissement Québec, the business is the continuation of a recognized business or part of a recognized business previously carried on by another corporation, the eligibility period of the corporation, in relation to the recognized business, is deemed, for the purposes of the definition of “eligibility period” in the first paragraph, to have begun on the date on which the eligibility period of the other corporation began, in relation to the recognized business.

For the purposes of this division,

(a)  where, during a pay period within a calendar year, an employee reports for work at an establishment of a qualified corporation situated in a designated site and at an establishment of the qualified corporation situated outside the designated site, the employee is, for that period, deemed

i.  except if subparagraph ii applies, to report for work only at the establishment situated in the designated site, or

ii.  to report for work only at the establishment situated outside the designated site if, during that period, the employee reports for work mainly at an establishment of the qualified corporation situated outside the designated site;

(b)  where, during a pay period within a calendar year, an employee reports for work at an establishment of a qualified corporation situated in Québec and at an establishment of the qualified corporation situated outside Québec, the employee is, for that period, deemed

i.  except if subparagraph ii applies, to report for work only at the establishment situated in Québec, or

ii.  to report for work only at the establishment situated outside Québec if, during that period, the employee reports for work mainly at an establishment of the qualified corporation situated outside Québec; and

(c)  where, during a pay period within a calendar year, an employee is not required to report for work at an establishment of a qualified corporation and the employee’s salary or wages in relation to that period are paid from such an establishment situated in Québec, the employee is deemed to report for work at that establishment if the duties performed by the employee during that period are performed mainly in Québec.

For the purposes of this division, a reference to a calendar year ending in a taxation year includes a reference to a calendar year ending coincidentally with that taxation year.

2003, c. 9, s. 219; 2004, c. 21, s. 330; 2005, c. 23, s. 164; 2006, c. 13, s. 126.

2006-03-01

1029.8.36.0.3.60. In this division,

"base amount" of a corporation, in relation to a particular recognized business, means

(a)  except in respect of a corporation that results from an amalgamation, an amount equal to zero, where, at no time in its base period in relation to the particular recognized business, the corporation carried on a business in Québec in the sectors of activity described in any of paragraphs a to c of the definition of "recognized business"; and

(b)  in any other case, the aggregate of all amounts each of which is

i.  the salary or wages paid by the corporation to an employee in the course of carrying on the particular recognized business, in respect of a pay period, within its base period, in relation to the particular recognized business, for which the employee is an eligible employee, or

ii.  the salary or wages of an employee who reports for work at an establishment of the corporation situated in Québec but outside an eligible site, other than an excluded employee of the corporation, that were paid by the corporation, in the course of carrying on any given business in respect of a pay period, within its base period, in relation to the particular recognized business, throughout which the employee spends, when at work, at least 90% of the time in undertaking, supervising or supporting, in an establishment of the corporation situated in Québec or elsewhere, but in connection with the mandates attributable to such an establishment, work that is directly related to activities of the corporation that are described in any of paragraphs a to c of the definition of "recognized business", except if an amount is included, in respect of the employee, in relation to the given business, in computing the base amount of the corporation in relation to another recognized business;

"base period" of a corporation, in relation to a recognized business, means the calendar year preceding the calendar year in which the eligibility period of a corporation in relation to the recognized business begins;

"designated site" means premises designated by Investissement Québec for the purposes of this division;

"eligibility period" of a corporation, in relation to a recognized business, means, subject to the second paragraph, the five-year period that begins on 1 January of the first calendar year, preceding the calendar year 2004, in respect of which the corporation obtains its qualification certificate, in relation to the recognized business;

"eligible amount" of a corporation for a calendar year means the aggregate of all amounts each of which is

(a)  the salary or wages paid by the corporation to an employee in respect of a pay period, within the year, for which the employee is an eligible employee, in relation to a recognized business of the corporation; or

(b)  the salary or wages of an employee who reports for work at an establishment of the corporation situated in Québec, other than an employee referred to in paragraph a or an excluded employee of the corporation, that were paid by the corporation in respect of a pay period, within the year, throughout which the employee spends, when at work, at least 90% of the time in undertaking, supervising or supporting, in an establishment of the corporation situated in Québec or elsewhere, but in connection with the mandates attributable to such an establishment, work that is directly related to activities of the corporation that are described in any of paragraphs a to c of the definition of "recognized business";

"eligible employee" of a corporation for a pay period of a calendar year, in relation to a recognized business, means an employee, other than an excluded employee at any time in that period, in respect of whom a qualification certificate is issued to the corporation for the year by Investissement Québec for the purposes of this division, certifying that the employee is an eligible employee of the corporation for the pay period, in relation to the recognized business;

"eligible repayment of assistance" for a taxation year of a qualified corporation means the aggregate of

(a)  where the qualified corporation pays in the taxation year, pursuant to a legal obligation, an amount that may reasonably be considered to be a repayment of assistance referred to in subparagraph i of subparagraph a of the first paragraph of section 1029.8.36.0.3.65 that reduced the amount of the salary or wages paid by the qualified corporation to an employee, for the purpose of computing the amount referred to in subparagraph a of the first paragraph of section 1029.8.36.0.3.61 that relates to a calendar year preceding the calendar year ending in the taxation year, the amount by which the amount that would have been determined under that subparagraph a in respect of the qualified corporation in relation to the preceding calendar year if each of the amounts of assistance paid in respect of the salary or wages had been reduced by any amount paid by the qualified corporation, in respect of such an amount of assistance, as repayment in the taxation year or a preceding taxation year, exceeds the aggregate of

i.  the amount determined under subparagraph a of the first paragraph of section 1029.8.36.0.3.61 in respect of the qualified corporation in relation to the preceding calendar year, and

ii.  the aggregate of all amounts determined for a taxation year preceding the taxation year under this paragraph in relation to a repayment of assistance;

(b)  where a corporation pays in a calendar year ending in the taxation year, pursuant to a legal obligation, an amount that may reasonably be considered to be a repayment of assistance referred to in subparagraph i of subparagraph a of the first paragraph of section 1029.8.36.0.3.65 that reduced the amount of the salary or wages paid by the corporation to an employee, for the purpose of computing the amount referred to in subparagraph a of the first paragraph of section 1029.8.36.0.3.62 that relates to a calendar year preceding the calendar year in relation to the qualified corporation at the end of which the qualified corporation was not associated with any other qualified corporation that was carrying on a recognized business for its taxation year in which the preceding calendar year ended, the amount by which the amount that would have been determined under that subparagraph a in respect of the qualified corporation in relation to the preceding calendar year if each of the amounts of assistance paid in respect of the salary or wages had been reduced by any amount paid, in respect of such an amount of assistance, as repayment in the calendar year or a preceding calendar year, exceeds the aggregate of

i.  the amount determined under subparagraph a of the first paragraph of section 1029.8.36.0.3.62 in respect of the qualified corporation in relation to the preceding calendar year, and

ii.  the aggregate of all amounts determined for a calendar year preceding the calendar year under this paragraph in relation to a repayment of assistance; and

(c)  where a qualified corporation pays in a calendar year ending in the taxation year, pursuant to a legal obligation, an amount that may reasonably be considered to be a repayment of assistance referred to in subparagraph i of subparagraph b of the first paragraph of section 1029.8.36.0.3.65 that reduced the amount of the salary or wages paid by the qualified corporation to an employee, for the purpose of computing the excess amount referred to in paragraph a or c of section 1029.8.36.0.3.63 determined, in respect of a calendar year preceding the calendar year, in relation to all of the corporations that were associated with each other at the end of that preceding calendar year and with which the qualified corporation was associated at that time, the amount by which the amount that would have been determined under subparagraph a of the first paragraph of section 1029.8.36.0.3.62 in respect of the qualified corporation in relation to the preceding calendar year if, for the purposes of paragraph a or c of section 1029.8.36.0.3.63, as the case may be, in relation to that preceding calendar year, each of the amounts of assistance in respect of the salary or wages had been reduced by any amount paid, in respect of such an amount of assistance, as repayment in the calendar year or a preceding calendar year, and if the amount determined pursuant to section 1029.8.36.0.3.63 had been attributed to a qualified corporation in the same proportion as that determined in its respect in relation to the preceding calendar year, exceeds the aggregate of

i.  the amount determined under subparagraph a of the first paragraph of section 1029.8.36.0.3.62 in respect of the qualified corporation in relation to the preceding calendar year, and

ii.  the aggregate of all amounts determined for a calendar year preceding the calendar year under this paragraph in relation to a repayment of assistance;

"excluded employee" at a particular time means an employee of a corporation who, at that time, is

(a)  a foreign specialist, within the meaning of section 737.22.0.1, where the corporation is an eligible employer referred to in paragraph c of the definition of foreign specialist in that section or in paragraph d of that definition if the corporation carries on a business in the Centre national des nouvelles technologies de Québec, within the meaning of the first paragraph of section 1029.8.36.0.17;

(b)  an eligible employee of the corporation, within the meaning of the first paragraph of section 1029.8.36.0.3.38, as it read before being repealed, or a specified employee of the corporation, within the meaning of the first paragraph of section 1029.8.36.0.17, if the corporation carries on a business in the Centre national des nouvelles technologies de Québec; or

(c)  a specified shareholder of that corporation or, where the corporation is a cooperative, a specified member of that corporation;

"qualified corporation", for a calendar year, means a corporation that, in the year, carries on a qualified business in Québec and has an establishment in Québec, but does not include

(a)  a corporation that is exempt from tax under Book VIII for the taxation year in which the calendar year ends;

(b)  a corporation that would be exempt from tax for the taxation year in which the calendar year ends under section 985 but for section 192; or

(c)  a corporation control of which is acquired at any time after 11 June 2003 by a person or group of persons, unless acquiring control of the corporation

i.  occurs before 1 July 2004 where Investissement Québec certifies that the acquisition of control results from a transaction that was sufficiently advanced on 11 June 2003 and was binding on the parties on that date,

ii.  is by a corporation carrying on at that time a recognized business, or by a group of persons all the members of which are corporations carrying on at that time a recognized business, or

iii.  derives from the exercise after 11 June 2003 of one or more rights described in paragraph b of section 20 that were acquired before 12 June 2003;

"recognized business" of a corporation for a taxation year means a business carried on by the corporation in the year in respect of which a qualification certificate is issued by Investissement Québec for the purposes of this division, certifying that its activities are

(a)  activities of developing and supplying products and services relating to e-business;

(b)  activities relating to the operation of e-business solutions; or

(c)  activities of a client contact centre;

"salary or wages" means the income computed pursuant to Chapters I and II of Title II of Book III, but does not include directors’ fees, premiums, incentive bonuses, compensation for hours worked in addition to normal working hours, commissions or benefits referred to in Division II of Chapter II of Title II of Book III;

"specified member" of a corporation that is a cooperative, in a taxation year, means a member having, directly or indirectly, at any time in the year, at least 10% of the votes at a meeting of the members of the cooperative.

Except where section 1029.8.36.0.3.67 or 1029.8.36.0.3.68 applies, where, in a taxation year, a corporation carries on a business in respect of which a qualification certificate has been issued by Investissement Québec and, in the opinion of Investissement Québec, the business is the continuation of a recognized business or part of a recognized business previously carried on by another corporation, the eligibility period of the corporation, in relation to the recognized business, is deemed, for the purposes of the definition of "eligibility period" in the first paragraph, to have begun on the date on which the eligibility period of the other corporation began, in relation to the recognized business.

For the purposes of this division,

(a)  where, during a pay period within a calendar year, an employee reports for work at an establishment of a qualified corporation situated in a designated site and at an establishment of the qualified corporation situated outside the designated site, the employee is, for that period, deemed

i.  except if subparagraph ii applies, to report for work only at the establishment situated in the designated site, or

ii.  to report for work only at the establishment situated outside the designated site if, during that period, the employee reports for work mainly at an establishment of the qualified corporation situated outside the designated site;

(b)  where, during a pay period within a calendar year, an employee reports for work at an establishment of a qualified corporation situated in Québec and at an establishment of the qualified corporation situated outside Québec, the employee is, for that period, deemed

i.  except if subparagraph ii applies, to report for work only at the establishment situated in Québec, or

ii.  to report for work only at the establishment situated outside Québec if, during that period, the employee reports for work mainly at an establishment of the qualified corporation situated outside Québec; and

(c)  where, during a pay period within a calendar year, an employee is not required to report for work at an establishment of a qualified corporation and the employee’s salary or wages in relation to that period are paid from such an establishment situated in Québec, the employee is deemed to report for work at that establishment if the duties performed by the employee during that period are performed mainly in Québec.

For the purposes of this division, a reference to a calendar year ending in a taxation year includes a reference to a calendar year ending coincidentally with that taxation year.

2003, c. 9, s. 219; 2004, c. 21, s. 330; 2005, c. 23, s. 164.