I-3 - Taxation Act

Section 1029.8.36.7 Disposition versions

2019-12-11

1029.8.36.7. A qualified corporation in respect of which the Minister of Economy and Innovation issues a certificate for a period of a taxation year, in respect of a design activity in connection with a business it carries on in Québec and that encloses the documents referred to in the sixth paragraph with the fiscal return it is required to file under section 1000 for the year, 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 the aggregate of

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

i.  the wages incurred by the qualified corporation, 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 corporation 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 corporation, 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 corporation 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, 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.

For the purposes of the first paragraph,

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

(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.

However, the first paragraph does not apply to a qualified corporation whose gross revenue for the year from the carrying on of the business referred to in that paragraph is less than $150,000 or, where the taxation year of a qualified corporation has fewer than 52 weeks, less than the amount obtained by multiplying $150,000 by the proportion that the number of weeks in the taxation year 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 corporation 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 year to the qualified corporation 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.

1995, c. 1, s. 157; 1995, c. 63, s. 182; 1997, c. 3, s. 71; 1997, c. 14, s. 225; 1997, c. 31, s. 143; 1999, c. 8, s. 20; 1999, c. 83, s. 329; 2001, c. 51, s. 171; 2003, c. 9, s. 278; 2003, c. 29, s. 135; 2004, c. 21, s. 351; 2006, c. 13, s. 138; 2015, c. 21, s. 448; 2019, c. 14, s. 354; 2019, c. 29, s. 1.

2019-06-19

1029.8.36.7. A qualified corporation in respect of which the Minister of Economic Development, Innovation and Export Trade issues a certificate for a period of a taxation year, in respect of a design activity in connection with a business it carries on in Québec and that encloses the documents referred to in the sixth paragraph with the fiscal return it is required to file under section 1000 for the year, 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 the aggregate of

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

i.  the wages incurred by the qualified corporation, 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 corporation 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 corporation, 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 corporation 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, 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.

For the purposes of the first paragraph,

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

(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.

However, the first paragraph does not apply to a qualified corporation whose gross revenue for the year from the carrying on of the business referred to in that paragraph is less than $150,000 or, where the taxation year of a qualified corporation has fewer than 52 weeks, less than the amount obtained by multiplying $150,000 by the proportion that the number of weeks in the taxation year 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 corporation 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 year to the qualified corporation 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.

1995, c. 1, s. 157; 1995, c. 63, s. 182; 1997, c. 3, s. 71; 1997, c. 14, s. 225; 1997, c. 31, s. 143; 1999, c. 8, s. 20; 1999, c. 83, s. 329; 2001, c. 51, s. 171; 2003, c. 9, s. 278; 2003, c. 29, s. 135; 2004, c. 21, s. 351; 2006, c. 13, s. 138; 2015, c. 21, s. 448; 2019, c. 14, s. 354.

2015-10-21

1029.8.36.7. A qualified corporation in respect of which the Minister of Economic Development, Innovation and Export Trade issues a certificate for a period of a taxation year, in respect of a design activity in connection with a business it carries on in Québec and that encloses the documents referred to in the sixth paragraph with the fiscal return it is required to file under section 1000 for the year, 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 the aggregate of

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

i.  the wages incurred by the qualified corporation, 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 corporation 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 corporation, 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 corporation 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, 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.

For the purposes of the first paragraph,

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

(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.

However, the first paragraph does not apply to a qualified corporation whose gross revenue for the year from the carrying on of the business referred to in that paragraph is less than $150,000 or, where the taxation year of a qualified corporation has fewer than 52 weeks, less than the amount obtained by multiplying $150,000 by the proportion that the number of weeks in the taxation year 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 corporation 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 year to the qualified corporation 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.

1995, c. 1, s. 157; 1995, c. 63, s. 182; 1997, c. 3, s. 71; 1997, c. 14, s. 225; 1997, c. 31, s. 143; 1999, c. 8, s. 20; 1999, c. 83, s. 329; 2001, c. 51, s. 171; 2003, c. 9, s. 278; 2003, c. 29, s. 135; 2004, c. 21, s. 351; 2006, c. 13, s. 138; 2015, c. 21, s. 448.

2006-06-13

1029.8.36.7. A qualified corporation in respect of which the Minister of Economic Development, Innovation and Export Trade issues a certificate for a period of a taxation year, in respect of a design activity in connection with a business it carries on in Québec and that encloses the documents referred to in the sixth paragraph with the fiscal return it is required to file under section 1000 for the year, 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 the aggregate of

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

i.  the wages incurred by the qualified corporation, 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 corporation 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 corporation, 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 corporation 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, 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.

For the purposes of the first paragraph,

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

(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.

However, the first paragraph does not apply to a qualified corporation whose gross revenue for the year from the carrying on of the business referred to in that paragraph is less than $150,000 or, where the taxation year of a qualified corporation has fewer than 52 weeks, less than the amount obtained by multiplying $150,000 by the proportion that the number of weeks in the taxation year 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 corporation 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 year to the qualified corporation 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.

1995, c. 1, s. 157; 1995, c. 63, s. 182; 1997, c. 3, s. 71; 1997, c. 14, s. 225; 1997, c. 31, s. 143; 1999, c. 8, s. 20; 1999, c. 83, s. 329; 2001, c. 51, s. 171; 2003, c. 9, s. 278; 2003, c. 29, s. 135; 2004, c. 21, s. 351; 2006, c. 13, s. 138.

2006-03-01

1029.8.36.7. A qualified corporation in respect of which the Minister of Economic and Regional Development and Research issues a certificate for a period of one taxation year, in respect of a design activity in connection with a business it carries on in Québec and that encloses with its fiscal return it is required to file under section 1000 the prescribed form containing the prescribed information and a copy of the certificate is deemed, subject to the second paragraph, to have paid to the Minister on the corporation’s balance-due day for the year, on account of its tax payable for that year under this Part, an amount equal to 15% of the qualified wages incurred by the corporation, within the framework of that activity and in the period described in the certificate, in respect of a particular designer whose name appears on the certificate, to the extent that the wages were paid and

(a)  are reasonably attributable to the carrying out of the eligible design activity in that period; and

(b)  are reasonable in the circumstances.

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, 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.

For the purposes of the first paragraph,

(a)  where qualified wages incurred in a taxation year are reasonably attributable to the carrying out of a design activity in a taxation year subsequent to the year, the qualified wages are deemed to be incurred in that subsequent taxation year;

(b)  where qualified wages incurred in a period, in respect of a particular designer, are attributable, in a proportion of at least 90%, to the carrying out of a design activity, the qualified wages are deemed to be wholly attributable to that design activity.

However, the first paragraph does not apply to a qualified corporation whose gross revenue for the year from the carrying on of the business referred to in that paragraph is less than $150,000 or, where the taxation year of a qualified corporation has fewer than 52 weeks, less than the amount obtained by multiplying $150,000 by the proportion that the number of weeks in the taxation year is of 52.

1995, c. 1, s. 157; 1995, c. 63, s. 182; 1997, c. 3, s. 71; 1997, c. 14, s. 225; 1997, c. 31, s. 143; 1999, c. 8, s. 20; 1999, c. 83, s. 329; 2001, c. 51, s. 171; 2003, c. 9, s. 278; 2003, c. 29, s. 135; O.C. 222-2004; 2004, c. 21, s. 351.