I-3 - Taxation Act

Section 737.18.14 Disposition versions

2021-01-01

737.18.14. (Repealed).

2002, c. 9, s. 13; 2006, c. 13, s. 54; 2009, c. 5, s. 253; 2009, c. 15, s. 130; 2011, c. 1, s. 34; 2012, c. 8, s. 76; 2019, c. 14, s. 196.

2012-05-09

737.18.14. In this Title, unless the context indicates otherwise,

“annual qualification certificate” for a taxation year of a corporation or a fiscal period of a partnership, in relation to a major investment project, means the qualification certificate issued by the Minister of Finance, in relation to the major investment project, in respect of a calendar year included in whole or in part in the taxation year of the corporation or the fiscal period of the partnership, as the case may be;

“compensation period” of a corporation or partnership, in relation to a major investment project, means the period that begins on the date of the beginning of the tax-free period of the corporation or partnership, as the case may be, in respect of the major investment project, and that ends at the particular time that corresponds to the end of the last taxation year of the corporation or the last fiscal period of the partnership ending before the beginning of the calendar year referred to in the annual qualification certificate that determines the date of the beginning of the tax-free period in relation to the major investment project, except where the corporation or partnership transferred, prior to the particular time, to another corporation or partnership all or substantially all of the recognized business in connection with which the major investment project is carried out or is in the process of being carried out, in which case it ends on the date of the transfer;

“date of the beginning of the tax-free period” of a corporation or partnership, in respect of a major investment project, means

(a)  where the initial qualification certificate, in respect of the major investment project, has been issued to the corporation or partnership, the date of the beginning of the tax-free period as determined by the Minister of Finance in one of the annual qualification certificates in relation to the major investment project; and

(b)  where the corporation or partnership acquired from another corporation or partnership all or substantially all of the recognized business in connection with which the major investment project is carried out or is in the process of being carried out and the Minister of Finance, for the purposes of this Title, previously authorized the acquisition, the date of the acquisition or, where later, the date of the beginning of the tax-free period as determined by the Minister of Finance in one of the annual qualification certificates in relation to the major investment project;

“eligibility period” of a corporation for a taxation year or of a partnership for a fiscal period, in relation to a major investment project, means

(a)  where the first day of the calendar year referred to in the valid annual qualification certificate that determines the date of the beginning of the tax-free period in relation to the major investment project is included in the taxation year of the corporation or the fiscal period of the partnership, the period of the taxation year or fiscal period, as the case may be, that ends at the end of the preceding calendar year, to the extent that that period does not precede that date, and the period of the taxation year or fiscal period, as the case may be, that is covered by the certificate; and

(b)  in any other case, the period of the taxation year or fiscal period, as the case may be, that is covered by one or more valid annual qualification certificates, in relation to the major investment project;

“eligible activities” of a corporation or partnership, in relation to a major investment project, means, subject to section 737.18.16.1, the activities or part of the activities carried on by the corporation or partnership in the course of carrying on the recognized business in connection with which the major investment project is carried out or is in the process of being carried out, that arise from the major investment project, except, in respect of the activities of a corporation, the part of the activities of the corporation that

(a)  are carried on under a contract that is an eligible contract for the purposes of Division II.6.0.1.8 of Chapter III.1 of Title III of Book IX;

(b)  are eligible activities for the purposes of Division II.6.0.1.9 of Chapter III.1 of Title III of Book IX; or

(c)  are qualified international financial transactions within the meaning of section 7 of the Act respecting international financial centres (chapter C-8.3) and are covered by a qualification certificate issued to the corporation by the Minister of Finance for the purposes of Division II.6.14.3 of Chapter III.1 of Title III of Book IX;

“major investment project” of a corporation or partnership means an investment project the carrying out of which begins after 14 March 2000 and in respect of which an initial qualification certificate has been issued to the corporation or partnership, as the case may be, by the Minister of Finance, for the purposes of this Title;

“prior loss attributable to eligible activities” of a corporation for a taxation year or a partnership for a fiscal period means the amount determined by the formula

A - B;

“recognized business” of a corporation or partnership means a business carried on in Québec by the corporation or partnership, in connection with which a major investment project was carried out or is in the process of being carried out and in respect of which the corporation or partnership keeps separate accounts in relation to the eligible activities carried on in the course of carrying on the business that arise from the major investment project.

In the formula referred to in the definition of “prior loss attributable to eligible activities” of a corporation for a particular taxation year or of a partnership for a particular fiscal period, provided for in the first paragraph,

(a)  A is

i.  in relation to a corporation, the aggregate of

(1)  the aggregate of all amounts each of which is the amount by which the amount determined under subparagraph b of the second paragraph of section 737.18.17, in respect of the corporation, for a taxation year preceding the particular taxation year, exceeds the amount determined under subparagraph a of the second paragraph of that section 737.18.17, in respect of the corporation, for the preceding taxation year, and

(2)  the aggregate of all amounts each of which is the amount that would have been determined under subparagraph b of the second paragraph of section 737.18.17, in respect of the eligible activities relating to a major investment project of the corporation, for a taxation year preceding the particular taxation year, if the eligibility period of the corporation for the preceding taxation year, in relation to the major investment project, had consisted of the portion of the year that is included in its compensation period in relation to the major investment project, and

ii.  in relation to a partnership, the aggregate of

(1)  the aggregate of all amounts each of which is the amount by which the amount determined under subparagraph e of the second paragraph of section 737.18.17, in respect of the partnership, for a fiscal period preceding the particular fiscal period, exceeds the amount determined under subparagraph d of the second paragraph of that section 737.18.17, in respect of the partnership, for the preceding fiscal period, and

(2)  the aggregate of all amounts each of which is the amount that would have been determined under subparagraph e of the second paragraph of section 737.18.17, in respect of the eligible activities relating to a major investment project of the partnership, for a fiscal period preceding the particular fiscal period, if the eligibility period of the partnership for the preceding fiscal period, in relation to the major investment project, had consisted of the portion of the fiscal period that is included in its compensation period in relation to the major investment project; and

(b)  B is

i.  in relation to a corporation, the aggregate of

(1)  the aggregate of all amounts each of which is the amount that reduced, because of C in the formula in subparagraph a of the first paragraph of section 737.18.17, the amount otherwise deductible by the corporation, under that section, for a taxation year preceding the particular taxation year, and

(2)  the aggregate of all amounts each of which is the amount that would have reduced, because of C in the formula in subparagraph a of the first paragraph of section 737.18.17, the amount that would have been otherwise deductible by the corporation, under that section, in respect of eligible activities relating to a major investment project, for a taxation year preceding the particular taxation year, if the corporation’s eligibility period for the preceding taxation year, in relation to the major investment project, had consisted of the portion of the preceding taxation year that is included in its compensation period in relation to the major investment project, and

ii.  in relation to a partnership, the aggregate of

(1)  the aggregate of all amounts each of which is the amount that reduced, because of F in the formula in subparagraph b of the first paragraph of section 737.18.17, the amount of which a portion would have been otherwise deductible by a corporation that is a member of the partnership, under that section, for a taxation year in which a fiscal period preceding the particular fiscal period of the partnership ends, and

(2)  the aggregate of all amounts each of which is the amount that would have reduced, because of F in the formula in subparagraph b of the first paragraph of section 737.18.17, the amount of which a portion would have been otherwise deductible by a corporation that is a member of the partnership, under that section, in respect of eligible activities relating to a major investment project, for a taxation year in which a fiscal period preceding the particular fiscal period of the partnership ends, if the eligibility period of the partnership for the preceding fiscal period, in relation to the major investment project, had consisted of the portion of the fiscal period that is included in its compensation period in relation to the major investment project.

For the purposes of the definition of “eligibility period” in the first paragraph, an annual qualification certificate, in relation to a major investment project, is no longer valid if the initial qualification certificate issued by the Minister of Finance in relation to the major investment project is revoked.

2002, c. 9, s. 13; 2006, c. 13, s. 54; 2009, c. 5, s. 253; 2009, c. 15, s. 130; 2011, c. 1, s. 34; 2012, c. 8, s. 76.

2011-02-17

737.18.14. In this Title, unless the context indicates otherwise,

“annual qualification certificate” for a taxation year of a corporation or a fiscal period of a partnership, in relation to a major investment project, means the qualification certificate issued by the Minister of Finance, in relation to the major investment project, in respect of a calendar year included in whole or in part in the taxation year of the corporation or the fiscal period of the partnership, as the case may be;

“compensation period” of a corporation or partnership, in relation to a major investment project, means the period that begins on the date of the beginning of the exemption period of the corporation or partnership, as the case may be, in respect of the major investment project, and that ends at the particular time that corresponds to the end of the last taxation year of the corporation or the last fiscal period of the partnership ending before the beginning of the calendar year referred to in the annual qualification certificate that determines the date of the beginning of the exemption period in relation to the major investment project, except where the corporation or partnership transferred, prior to the particular time, to another corporation or partnership all or substantially all of the recognized business in connection with which the major investment project is carried out or is in the process of being carried out, in which case it ends on the date of the transfer;

“date of the beginning of the exemption period” of a corporation or partnership, in respect of a major investment project, means

(a)  where the initial qualification certificate, in respect of the major investment project, has been issued to the corporation or partnership, the date of the beginning of the exemption period as determined by the Minister of Finance in one of the annual qualification certificates in relation to the major investment project; and

(b)  where the corporation or partnership acquired from another corporation or partnership all or substantially all of the recognized business in connection with which the major investment project is carried out or is in the process of being carried out and the Minister of Finance, for the purposes of this Title, previously authorized the acquisition, the date of the acquisition or, where later, the date of the beginning of the exemption period as determined by the Minister of Finance in one of the annual qualification certificates in relation to the major investment project;

“eligibility period” of a corporation for a taxation year or of a partnership for a fiscal period, in relation to a major investment project, means

(a)  where the first day of the calendar year referred to in the valid annual qualification certificate that determines the date of the beginning of the exemption period in relation to the major investment project is included in the taxation year of the corporation or the fiscal period of the partnership, the period of the taxation year or fiscal period, as the case may be, that ends at the end of the preceding calendar year, to the extent that that period does not precede that date, and the period of the taxation year or fiscal period, as the case may be, that is covered by the certificate; and

(b)  in any other case, the period of the taxation year or fiscal period, as the case may be, that is covered by one or more valid annual qualification certificates, in relation to the major investment project;

“eligible activities” of a corporation or partnership, in relation to a major investment project, means, subject to section 737.18.16.1, the activities or part of the activities carried on by the corporation or partnership in the course of carrying on the recognized business in connection with which the major investment project is carried out or is in the process of being carried out, that arise from the major investment project, except, in respect of the activities of a corporation, the part of the activities of the corporation that

(a)  are carried on under a contract that is an eligible contract for the purposes of Division II.6.0.1.8 of Chapter III.1 of Title III of Book IX;

(b)  are eligible activities for the purposes of Division II.6.0.1.9 of Chapter III.1 of Title III of Book IX; or

(c)  are qualified international financial transactions within the meaning of section 7 of the Act respecting international financial centres (chapter C-8.3) that are carried out after any of the following dates in the course of the operations of an international financial centre operated by the corporation:

i.  30 March 2010, if the corporation does not operate the international financial centre on that date, or

ii.  the date that precedes the date on which an election made by the corporation under the fourth paragraph of section 1029.8.36.166.62 becomes effective, if the corporation operates the international financial centre on 30 March 2010;

“major investment project” of a corporation or partnership means an investment project the carrying out of which begins after 14 March 2000 and in respect of which an initial qualification certificate has been issued to the corporation or partnership, as the case may be, by the Minister of Finance, for the purposes of this Title;

“prior loss attributable to eligible activities” of a corporation for a taxation year or a partnership for a fiscal period means the amount determined by the formula

A - B;

“recognized business” of a corporation or partnership means a business carried on in Québec by the corporation or partnership, in connection with which a major investment project was carried out or is in the process of being carried out and in respect of which the corporation or partnership keeps separate accounts in relation to the eligible activities carried on in the course of carrying on the business that arise from the major investment project.

In the formula referred to in the definition of “prior loss attributable to eligible activities” of a corporation for a particular taxation year or of a partnership for a particular fiscal period, provided for in the first paragraph,

(a)  A is

i.  in relation to a corporation, the aggregate of

(1)  the aggregate of all amounts each of which is the amount by which the amount determined under subparagraph b of the second paragraph of section 737.18.17, in respect of the corporation, for a taxation year preceding the particular taxation year, exceeds the amount determined under subparagraph a of the second paragraph of that section 737.18.17, in respect of the corporation, for the preceding taxation year, and

(2)  the aggregate of all amounts each of which is the amount that would have been determined under subparagraph b of the second paragraph of section 737.18.17, in respect of the eligible activities relating to a major investment project of the corporation, for a taxation year preceding the particular taxation year, if the eligibility period of the corporation for the preceding taxation year, in relation to the major investment project, had consisted of the portion of the year that is included in its compensation period in relation to the major investment project, and

ii.  in relation to a partnership, the aggregate of

(1)  the aggregate of all amounts each of which is the amount by which the amount determined under subparagraph e of the second paragraph of section 737.18.17, in respect of the partnership, for a fiscal period preceding the particular fiscal period, exceeds the amount determined under subparagraph d of the second paragraph of that section 737.18.17, in respect of the partnership, for the preceding fiscal period, and

(2)  the aggregate of all amounts each of which is the amount that would have been determined under subparagraph e of the second paragraph of section 737.18.17, in respect of the eligible activities relating to a major investment project of the partnership, for a fiscal period preceding the particular fiscal period, if the eligibility period of the partnership for the preceding fiscal period, in relation to the major investment project, had consisted of the portion of the fiscal period that is included in its compensation period in relation to the major investment project; and

(b)  B is

i.  in relation to a corporation, the aggregate of

(1)  the aggregate of all amounts each of which is the amount that reduced, because of C in the formula in subparagraph a of the first paragraph of section 737.18.17, the amount otherwise deductible by the corporation, under that section, for a taxation year preceding the particular taxation year, and

(2)  the aggregate of all amounts each of which is the amount that would have reduced, because of C in the formula in subparagraph a of the first paragraph of section 737.18.17, the amount that would have been otherwise deductible by the corporation, under that section, in respect of eligible activities relating to a major investment project, for a taxation year preceding the particular taxation year, if the corporation’s eligibility period for the preceding taxation year, in relation to the major investment project, had consisted of the portion of the preceding taxation year that is included in its compensation period in relation to the major investment project, and

ii.  in relation to a partnership, the aggregate of

(1)  the aggregate of all amounts each of which is the amount that reduced, because of F in the formula in subparagraph b of the first paragraph of section 737.18.17, the amount of which a portion would have been otherwise deductible by a corporation that is a member of the partnership, under that section, for a taxation year in which a fiscal period preceding the particular fiscal period of the partnership ends, and

(2)  the aggregate of all amounts each of which is the amount that would have reduced, because of F in the formula in subparagraph b of the first paragraph of section 737.18.17, the amount of which a portion would have been otherwise deductible by a corporation that is a member of the partnership, under that section, in respect of eligible activities relating to a major investment project, for a taxation year in which a fiscal period preceding the particular fiscal period of the partnership ends, if the eligibility period of the partnership for the preceding fiscal period, in relation to the major investment project, had consisted of the portion of the fiscal period that is included in its compensation period in relation to the major investment project.

For the purposes of the definition of “eligibility period” in the first paragraph, an annual qualification certificate, in relation to a major investment project, is no longer valid if the initial qualification certificate issued by the Minister of Finance in relation to the major investment project is revoked.

2002, c. 9, s. 13; 2006, c. 13, s. 54; 2009, c. 5, s. 253; 2009, c. 15, s. 130; 2011, c. 1, s. 34.

2009-06-04

737.18.14. In this Title, unless the context indicates otherwise,

“annual qualification certificate” for a taxation year of a corporation or a fiscal period of a partnership, in relation to a major investment project, means the qualification certificate issued by the Minister of Finance, in relation to the major investment project, in respect of a calendar year included in whole or in part in the taxation year of the corporation or the fiscal period of the partnership, as the case may be;

“compensation period” of a corporation or partnership, in relation to a major investment project, means the period that begins on the date of the beginning of the exemption period of the corporation or partnership, as the case may be, in respect of the major investment project, and that ends at the particular time that corresponds to the end of the last taxation year of the corporation or the last fiscal period of the partnership ending before the beginning of the calendar year referred to in the annual qualification certificate that determines the date of the beginning of the exemption period in relation to the major investment project, except where the corporation or partnership transferred, prior to the particular time, to another corporation or partnership all or substantially all of the recognized business in connection with which the major investment project is carried out or is in the process of being carried out, in which case it ends on the date of the transfer;

“date of the beginning of the exemption period” of a corporation or partnership, in respect of a major investment project, means

(a)  where the initial qualification certificate, in respect of the major investment project, has been issued to the corporation or partnership, the date of the beginning of the exemption period as determined by the Minister of Finance in one of the annual qualification certificates in relation to the major investment project; and

(b)  where the corporation or partnership acquired from another corporation or partnership all or substantially all of the recognized business in connection with which the major investment project is carried out or is in the process of being carried out and the Minister of Finance, for the purposes of this Title, previously authorized the acquisition, the date of the acquisition or, where later, the date of the beginning of the exemption period as determined by the Minister of Finance in one of the annual qualification certificates in relation to the major investment project;

“eligibility period” of a corporation for a taxation year or of a partnership for a fiscal period, in relation to a major investment project, means

(a)  where the first day of the calendar year referred to in the valid annual qualification certificate that determines the date of the beginning of the exemption period in relation to the major investment project is included in the taxation year of the corporation or the fiscal period of the partnership, the period of the taxation year or fiscal period, as the case may be, that ends at the end of the preceding calendar year, to the extent that that period does not precede that date, and the period of the taxation year or fiscal period, as the case may be, that is covered by the certificate; and

(b)  in any other case, the period of the taxation year or fiscal period, as the case may be, that is covered by one or more valid annual qualification certificates, in relation to the major investment project;

“eligible activities” of a corporation or partnership, in relation to a major investment project, means, subject to section 737.18.16.1, the activities or portion of the activities carried on by the corporation or partnership in the course of carrying on the recognized business in connection with which the major investment project is carried out or is in the process of being carried out, that arise from the major investment project, except, in respect of the activities of a corporation, the portion of the activities of the corporation that are carried on under a contract that is an eligible contract for the purposes of Division II.6.0.1.8 of Chapter III.1 of Title III of Book IX or that are eligible activities for the purposes of Division II.6.0.1.9 of that Chapter III.1;

“major investment project” of a corporation or partnership means an investment project the carrying out of which begins after 14 March 2000 and in respect of which an initial qualification certificate has been issued to the corporation or partnership, as the case may be, by the Minister of Finance, for the purposes of this Title;

“prior loss attributable to eligible activities” of a corporation for a taxation year or a partnership for a fiscal period means the amount determined by the formula

A - B;

“recognized business” of a corporation or partnership means a business carried on in Québec by the corporation or partnership, in connection with which a major investment project was carried out or is in the process of being carried out and in respect of which the corporation or partnership keeps separate accounts in relation to the eligible activities carried on in the course of carrying on the business that arise from the major investment project.

In the formula referred to in the definition of “prior loss attributable to eligible activities” of a corporation for a particular taxation year or of a partnership for a particular fiscal period, provided for in the first paragraph,

(a)  A is

i.  in relation to a corporation, the aggregate of

(1)  the aggregate of all amounts each of which is the amount by which the amount determined under subparagraph b of the second paragraph of section 737.18.17, in respect of the corporation, for a taxation year preceding the particular taxation year, exceeds the amount determined under subparagraph a of the second paragraph of that section 737.18.17, in respect of the corporation, for the preceding taxation year, and

(2)  the aggregate of all amounts each of which is the amount that would have been determined under subparagraph b of the second paragraph of section 737.18.17, in respect of the eligible activities relating to a major investment project of the corporation, for a taxation year preceding the particular taxation year, if the eligibility period of the corporation for the preceding taxation year, in relation to the major investment project, had consisted of the portion of the year that is included in its compensation period in relation to the major investment project, and

ii.  in relation to a partnership, the aggregate of

(1)  the aggregate of all amounts each of which is the amount by which the amount determined under subparagraph e of the second paragraph of section 737.18.17, in respect of the partnership, for a fiscal period preceding the particular fiscal period, exceeds the amount determined under subparagraph d of the second paragraph of that section 737.18.17, in respect of the partnership, for the preceding fiscal period, and

(2)  the aggregate of all amounts each of which is the amount that would have been determined under subparagraph e of the second paragraph of section 737.18.17, in respect of the eligible activities relating to a major investment project of the partnership, for a fiscal period preceding the particular fiscal period, if the eligibility period of the partnership for the preceding fiscal period, in relation to the major investment project, had consisted of the portion of the fiscal period that is included in its compensation period in relation to the major investment project; and

(b)  B is

i.  in relation to a corporation, the aggregate of

(1)  the aggregate of all amounts each of which is the amount that reduced, because of C in the formula in subparagraph a of the first paragraph of section 737.18.17, the amount otherwise deductible by the corporation, under that section, for a taxation year preceding the particular taxation year, and

(2)  the aggregate of all amounts each of which is the amount that would have reduced, because of C in the formula in subparagraph a of the first paragraph of section 737.18.17, the amount that would have been otherwise deductible by the corporation, under that section, in respect of eligible activities relating to a major investment project, for a taxation year preceding the particular taxation year, if the corporation’s eligibility period for the preceding taxation year, in relation to the major investment project, had consisted of the portion of the preceding taxation year that is included in its compensation period in relation to the major investment project, and

ii.  in relation to a partnership, the aggregate of

(1)  the aggregate of all amounts each of which is the amount that reduced, because of F in the formula in subparagraph b of the first paragraph of section 737.18.17, the amount of which a portion would have been otherwise deductible by a corporation that is a member of the partnership, under that section, for a taxation year in which a fiscal period preceding the particular fiscal period of the partnership ends, and

(2)  the aggregate of all amounts each of which is the amount that would have reduced, because of F in the formula in subparagraph b of the first paragraph of section 737.18.17, the amount of which a portion would have been otherwise deductible by a corporation that is a member of the partnership, under that section, in respect of eligible activities relating to a major investment project, for a taxation year in which a fiscal period preceding the particular fiscal period of the partnership ends, if the eligibility period of the partnership for the preceding fiscal period, in relation to the major investment project, had consisted of the portion of the fiscal period that is included in its compensation period in relation to the major investment project.

For the purposes of the definition of “eligibility period” in the first paragraph, an annual qualification certificate, in relation to a major investment project, is no longer valid if the initial qualification certificate issued by the Minister of Finance in relation to the major investment project is revoked.

2002, c. 9, s. 13; 2006, c. 13, s. 54; 2009, c. 5, s. 253; 2009, c. 15, s. 130.

2009-05-15

737.18.14. In this Title, unless the context indicates otherwise,

“annual qualification certificate” for a taxation year of a corporation or a fiscal period of a partnership, in relation to a major investment project, means the qualification certificate issued by the Minister of Finance, in relation to the major investment project, in respect of a calendar year included in whole or in part in the taxation year of the corporation or the fiscal period of the partnership, as the case may be;

“compensation period” of a corporation or partnership, in relation to a major investment project, means the period that begins on the date of the beginning of the exemption period of the corporation or partnership, as the case may be, in respect of the major investment project, and that ends at the particular time that corresponds to the end of the last taxation year of the corporation or the last fiscal period of the partnership ending before the beginning of the calendar year referred to in the annual qualification certificate that determines the date of the beginning of the exemption period in relation to the major investment project, except where the corporation or partnership transferred, prior to the particular time, to another corporation or partnership all or substantially all of the recognized business in connection with which the major investment project is carried out or is in the process of being carried out, in which case it ends on the date of the transfer;

“date of the beginning of the exemption period” of a corporation or partnership, in respect of a major investment project, means

(a)  where the initial qualification certificate, in respect of the major investment project, has been issued to the corporation or partnership, the date of the beginning of the exemption period as determined by the Minister of Finance in one of the annual qualification certificates in relation to the major investment project; and

(b)  where the corporation or partnership acquired from another corporation or partnership all or substantially all of the recognized business in connection with which the major investment project is carried out or is in the process of being carried out and the Minister of Finance, for the purposes of this Title, previously authorized the acquisition, the date of the acquisition or, where later, the date of the beginning of the exemption period as determined by the Minister of Finance in one of the annual qualification certificates in relation to the major investment project;

“eligibility period” of a corporation for a taxation year or of a partnership for a fiscal period, in relation to a major investment project, means

(a)  where the first day of the calendar year referred to in the valid annual qualification certificate that determines the date of the beginning of the exemption period in relation to the major investment project is included in the taxation year of the corporation or the fiscal period of the partnership, the period of the taxation year or fiscal period, as the case may be, that ends at the end of the preceding calendar year, to the extent that that period does not precede that date, and the period of the taxation year or fiscal period, as the case may be, that is covered by the certificate; and

(b)  in any other case, the period of the taxation year or fiscal period, as the case may be, that is covered by one or more valid annual qualification certificates, in relation to the major investment project;

“eligible activities” of a corporation or partnership, in relation to a major investment project, means, subject to section 737.18.16.1, the activities or portion of the activities carried on by the corporation or partnership in the course of carrying on the recognized business in connection with which the major investment project is carried out or is in the process of being carried out, that arise from the major investment project, except, in respect of the activities of a corporation, the portion of the activities of the corporation that are carried on under a contract that is an eligible contract for the purposes of Division II.6.0.1.8 of Chapter III.1 of Title III of Book IX;

“major investment project” of a corporation or partnership means an investment project the carrying out of which begins after 14 March 2000 and in respect of which an initial qualification certificate has been issued to the corporation or partnership, as the case may be, by the Minister of Finance, for the purposes of this Title;

“prior loss attributable to eligible activities” of a corporation for a taxation year or a partnership for a fiscal period means the amount determined by the formula

A - B;

“recognized business” of a corporation or partnership means a business carried on in Québec by the corporation or partnership, in connection with which a major investment project was carried out or is in the process of being carried out and in respect of which the corporation or partnership keeps separate accounts in relation to the eligible activities carried on in the course of carrying on the business that arise from the major investment project.

In the formula referred to in the definition of “prior loss attributable to eligible activities” of a corporation for a particular taxation year or of a partnership for a particular fiscal period, provided for in the first paragraph,

(a)  A is

i.  in relation to a corporation, the aggregate of

(1)  the aggregate of all amounts each of which is the amount by which the amount determined under subparagraph b of the second paragraph of section 737.18.17, in respect of the corporation, for a taxation year preceding the particular taxation year, exceeds the amount determined under subparagraph a of the second paragraph of that section 737.18.17, in respect of the corporation, for the preceding taxation year, and

(2)  the aggregate of all amounts each of which is the amount that would have been determined under subparagraph b of the second paragraph of section 737.18.17, in respect of the eligible activities relating to a major investment project of the corporation, for a taxation year preceding the particular taxation year, if the eligibility period of the corporation for the preceding taxation year, in relation to the major investment project, had consisted of the portion of the year that is included in its compensation period in relation to the major investment project, and

ii.  in relation to a partnership, the aggregate of

(1)  the aggregate of all amounts each of which is the amount by which the amount determined under subparagraph e of the second paragraph of section 737.18.17, in respect of the partnership, for a fiscal period preceding the particular fiscal period, exceeds the amount determined under subparagraph d of the second paragraph of that section 737.18.17, in respect of the partnership, for the preceding fiscal period, and

(2)  the aggregate of all amounts each of which is the amount that would have been determined under subparagraph e of the second paragraph of section 737.18.17, in respect of the eligible activities relating to a major investment project of the partnership, for a fiscal period preceding the particular fiscal period, if the eligibility period of the partnership for the preceding fiscal period, in relation to the major investment project, had consisted of the portion of the fiscal period that is included in its compensation period in relation to the major investment project; and

(b)  B is

i.  in relation to a corporation, the aggregate of

(1)  the aggregate of all amounts each of which is the amount that reduced, because of C in the formula in subparagraph a of the first paragraph of section 737.18.17, the amount otherwise deductible by the corporation, under that section, for a taxation year preceding the particular taxation year, and

(2)  the aggregate of all amounts each of which is the amount that would have reduced, because of C in the formula in subparagraph a of the first paragraph of section 737.18.17, the amount that would have been otherwise deductible by the corporation, under that section, in respect of eligible activities relating to a major investment project, for a taxation year preceding the particular taxation year, if the corporation’s eligibility period for the preceding taxation year, in relation to the major investment project, had consisted of the portion of the preceding taxation year that is included in its compensation period in relation to the major investment project, and

ii.  in relation to a partnership, the aggregate of

(1)  the aggregate of all amounts each of which is the amount that reduced, because of F in the formula in subparagraph b of the first paragraph of section 737.18.17, the amount of which a portion would have been otherwise deductible by a corporation that is a member of the partnership, under that section, for a taxation year in which a fiscal period preceding the particular fiscal period of the partnership ends, and

(2)  the aggregate of all amounts each of which is the amount that would have reduced, because of F in the formula in subparagraph b of the first paragraph of section 737.18.17, the amount of which a portion would have been otherwise deductible by a corporation that is a member of the partnership, under that section, in respect of eligible activities relating to a major investment project, for a taxation year in which a fiscal period preceding the particular fiscal period of the partnership ends, if the eligibility period of the partnership for the preceding fiscal period, in relation to the major investment project, had consisted of the portion of the fiscal period that is included in its compensation period in relation to the major investment project.

For the purposes of the definition of “eligibility period” in the first paragraph, an annual qualification certificate, in relation to a major investment project, is no longer valid if the initial qualification certificate issued by the Minister of Finance in relation to the major investment project is revoked.

2002, c. 9, s. 13; 2006, c. 13, s. 54; 2009, c. 5, s. 253.

2006-06-13

737.18.14. In this Title, unless the context indicates otherwise,

“annual qualification certificate” for a taxation year of a corporation or a fiscal period of a partnership, in relation to a major investment project, means the qualification certificate issued by the Minister of Finance, in relation to the major investment project, in respect of a calendar year included in whole or in part in the taxation year of the corporation or the fiscal period of the partnership, as the case may be;

“compensation period” of a corporation or partnership, in relation to a major investment project, means the period that begins on the date of the beginning of the exemption period of the corporation or partnership, as the case may be, in respect of the major investment project, and that ends at the particular time that corresponds to the end of the last taxation year of the corporation or the last fiscal period of the partnership ending before the beginning of the calendar year referred to in the annual qualification certificate that determines the date of the beginning of the exemption period in relation to the major investment project, except where the corporation or partnership transferred, prior to the particular time, to another corporation or partnership all or substantially all of the recognized business in connection with which the major investment project is carried out or is in the process of being carried out, in which case it ends on the date of the transfer;

“date of the beginning of the exemption period” of a corporation or partnership, in respect of a major investment project, means

(a)  where the initial qualification certificate, in respect of the major investment project, has been issued to the corporation or partnership, the date of the beginning of the exemption period as determined by the Minister of Finance in one of the annual qualification certificates in relation to the major investment project; and

(b)  where the corporation or partnership acquired from another corporation or partnership all or substantially all of the recognized business in connection with which the major investment project is carried out or is in the process of being carried out and the Minister of Finance, for the purposes of this Title, previously authorized the acquisition, the date of the acquisition or, where later, the date of the beginning of the exemption period as determined by the Minister of Finance in one of the annual qualification certificates in relation to the major investment project;

“eligibility period” of a corporation for a taxation year or of a partnership for a fiscal period, in relation to a major investment project, means

(a)  where the first day of the calendar year referred to in the valid annual qualification certificate that determines the date of the beginning of the exemption period in relation to the major investment project is included in the taxation year of the corporation or the fiscal period of the partnership, the period of the taxation year or fiscal period, as the case may be, that ends at the end of the preceding calendar year, to the extent that that period does not precede that date, and the period of the taxation year or fiscal period, as the case may be, that is covered by the certificate; and

(b)  in any other case, the period of the taxation year or fiscal period, as the case may be, that is covered by one or more valid annual qualification certificates, in relation to the major investment project;

“eligible activities” of a corporation or partnership, in relation to a major investment project, means the activities or portion of the activities carried on by the corporation or partnership in the course of carrying on the recognized business in connection with which the major investment project is carried out or is in the process of being carried out, that arise from the major investment project, except, in respect of the activities of a corporation, the portion of the activities of the corporation that are carried on under a contract that is an eligible contract for the purposes of Division II.6.0.1.8 of Chapter III.1 of Title III of Book IX;

“major investment project” of a corporation or partnership means an investment project the carrying out of which begins after 14 March 2000 and in respect of which an initial qualification certificate has been issued to the corporation or partnership, as the case may be, by the Minister of Finance, for the purposes of this Title;

“prior loss attributable to eligible activities” of a corporation for a taxation year or a partnership for a fiscal period means the amount determined by the formula

A − B;

“recognized business” of a corporation or partnership means a business carried on in Québec by the corporation or partnership, in connection with which a major investment project was carried out or is in the process of being carried out and in respect of which the corporation or partnership keeps separate accounts in relation to the activities carried on in the course of the business that arise from the major investment project.

In the formula referred to in the definition of “prior loss attributable to eligible activities” of a corporation for a particular taxation year or of a partnership for a particular fiscal period, provided for in the first paragraph,

(a)  A is

i.  in relation to a corporation, the aggregate of

(1)  the aggregate of all amounts each of which is the amount by which the amount determined under subparagraph b of the second paragraph of section 737.18.17, in respect of the corporation, for a taxation year preceding the particular taxation year, exceeds the amount determined under subparagraph a of the second paragraph of that section 737.18.17, in respect of the corporation, for the preceding taxation year, and

(2)  the aggregate of all amounts each of which is the amount that would have been determined under subparagraph b of the second paragraph of section 737.18.17, in respect of the eligible activities relating to a major investment project of the corporation, for a taxation year preceding the particular taxation year, if the eligibility period of the corporation for the preceding taxation year, in relation to the major investment project, had consisted of the portion of the year that is included in its compensation period in relation to the major investment project, and

ii.  in relation to a partnership, the aggregate of

(1)  the aggregate of all amounts each of which is the amount by which the amount determined under subparagraph e of the second paragraph of section 737.18.17, in respect of the partnership, for a fiscal period preceding the particular fiscal period, exceeds the amount determined under subparagraph d of the second paragraph of that section 737.18.17, in respect of the partnership, for the preceding fiscal period, and

(2)  the aggregate of all amounts each of which is the amount that would have been determined under subparagraph e of the second paragraph of section 737.18.17, in respect of the eligible activities relating to a major investment project of the partnership, for a fiscal period preceding the particular fiscal period, if the eligibility period of the partnership for the preceding fiscal period, in relation to the major investment project, had consisted of the portion of the fiscal period that is included in its compensation period in relation to the major investment project; and

(b)  B is

i.  in relation to a corporation, the aggregate of

(1)  the aggregate of all amounts each of which is the amount that reduced, because of C in the formula in subparagraph a of the first paragraph of section 737.18.17, the amount otherwise deductible by the corporation, under that section, for a taxation year preceding the particular taxation year, and

(2)  the aggregate of all amounts each of which is the amount that would have reduced, because of C in the formula in subparagraph a of the first paragraph of section 737.18.17, the amount that would have been otherwise deductible by the corporation, under that section, in respect of eligible activities relating to a major investment project, for a taxation year preceding the particular taxation year, if the corporation’s eligibility period for the preceding taxation year, in relation to the major investment project, had consisted of the portion of the preceding taxation year that is included in its compensation period in relation to the major investment project, and

ii.  in relation to a partnership, the aggregate of

(1)  the aggregate of all amounts each of which is the amount that reduced, because of F in the formula in subparagraph b of the first paragraph of section 737.18.17, the amount of which a portion would have been otherwise deductible by a corporation that is a member of the partnership, under that section, for a taxation year in which a fiscal period preceding the particular fiscal period of the partnership ends, and

(2)  the aggregate of all amounts each of which is the amount that would have reduced, because of F in the formula in subparagraph b of the first paragraph of section 737.18.17, the amount of which a portion would have been otherwise deductible by a corporation that is a member of the partnership, under that section, in respect of eligible activities relating to a major investment project, for a taxation year in which a fiscal period preceding the particular fiscal period of the partnership ends, if the eligibility period of the partnership for the preceding fiscal period, in relation to the major investment project, had consisted of the portion of the fiscal period that is included in its compensation period in relation to the major investment project.

For the purposes of the definition of “eligibility period” in the first paragraph, an annual qualification certificate, in relation to a major investment project, is no longer valid if the initial qualification certificate issued by the Minister of Finance in relation to the major investment project is revoked.

2002, c. 9, s. 13; 2006, c. 13, s. 54.

2006-03-01

737.18.14. In this Title, unless the context indicates otherwise,

“annual qualification certificate” for a taxation year of a corporation or a fiscal period of a partnership, in relation to a major investment project, means the qualification certificate issued by the Minister of Finance, in relation to the major investment project, in respect of a calendar year included in whole or in part in the taxation year of the corporation or the fiscal period of the partnership, as the case may be;

“compensation period” of a corporation or partnership, in relation to a major investment project, means the period that begins on the date of the beginning of the exemption period of the corporation or partnership, as the case may be, in respect of the major investment project, and that ends at the particular time that corresponds to the end of the last taxation year of the corporation or the last fiscal period of the partnership ending before the beginning of the calendar year referred to in the annual qualification certificate that determines the date of the beginning of the exemption period in relation to the major investment project, except where the corporation or partnership transferred, prior to the particular time, to another corporation or partnership all or substantially all of the recognized business in connection with which the major investment project is carried out or is in the process of being carried out, in which case it ends on the date of the transfer;

“date of the beginning of the exemption period” of a corporation or partnership, in respect of a major investment project, means

(a)  where the initial qualification certificate, in respect of the major investment project, has been issued to the corporation or partnership, the date of the beginning of the exemption period as determined by the Minister of Finance in one of the annual qualification certificates in relation to the major investment project; and

(b)  where the corporation or partnership acquired from another corporation or partnership all or substantially all of the recognized business in connection with which the major investment project is carried out or is in the process of being carried out and the Minister of Finance, for the purposes of this Title, previously authorized the acquisition, the date of the acquisition or, where later, the date of the beginning of the exemption period as determined by the Minister of Finance in one of the annual qualification certificates in relation to the major investment project;

“eligibility period” of a corporation for a taxation year or of a partnership for a fiscal period, in relation to a major investment project, means

(a)  where the first day of the calendar year referred to in the valid annual qualification certificate that determines the date of the beginning of the exemption period in relation to the major investment project is included in the taxation year of the corporation or the fiscal period of the partnership, the period of the taxation year or fiscal period, as the case may be, that ends at the end of the preceding calendar year, to the extent that that period does not precede that date, and the period of the taxation year or fiscal period, as the case may be, that is covered by the certificate; and

(b)  in any other case, the period of the taxation year or fiscal period, as the case may be, that is covered by one or more valid annual qualification certificates, in relation to the major investment project;

“eligible activities” of a corporation or partnership, in relation to a major investment project, means the activities or portion of the activities carried on by the corporation or partnership, as the case may be, in the course of carrying on the recognized business in connection with which the major investment project is carried out or is in the process of being carried out, that arise from the major investment project;

“major investment project” of a corporation or partnership means an investment project the carrying out of which begins after 14 March 2000 and in respect of which an initial qualification certificate has been issued to the corporation or partnership, as the case may be, by the Minister of Finance, for the purposes of this Title;

“prior loss attributable to eligible activities” of a corporation for a taxation year or a partnership for a fiscal period means the amount determined by the formula

A - B;

“recognized business” of a corporation or partnership means a business carried on in Québec by the corporation or partnership, in connection with which a major investment project was carried out or is in the process of being carried out and in respect of which the corporation or partnership keeps separate accounts in relation to the activities carried on in the course of the business that arise from the major investment project.

In the formula referred to in the definition of "prior loss attributable to eligible activities" of a corporation for a particular taxation year or of a partnership for a particular fiscal period, provided for in the first paragraph,

(a)  A is

i.  in relation to a corporation, the aggregate of

(1)  the aggregate of all amounts each of which is the amount by which the amount determined under subparagraph b of the second paragraph of section 737.18.17, in respect of the corporation, for a taxation year preceding the particular taxation year, exceeds the amount determined under subparagraph a of the second paragraph of that section 737.18.17, in respect of the corporation, for the preceding taxation year, and

(2)  the aggregate of all amounts each of which is the amount that would have been determined under subparagraph b of the second paragraph of section 737.18.17, in respect of the eligible activities relating to a major investment project of the corporation, for a taxation year preceding the particular taxation year, if the eligibility period of the corporation for the preceding taxation year, in relation to the major investment project, had consisted of the portion of the year that is included in its compensation period in relation to the major investment project, and

ii.  in relation to a partnership, the aggregate of

(1)  the aggregate of all amounts each of which is the amount by which the amount determined under subparagraph e of the second paragraph of section 737.18.17, in respect of the partnership, for a fiscal period preceding the particular fiscal period, exceeds the amount determined under subparagraph d of the second paragraph of that section 737.18.17, in respect of the partnership, for the preceding fiscal period, and

(2)  the aggregate of all amounts each of which is the amount that would have been determined under subparagraph e of the second paragraph of section 737.18.17, in respect of the eligible activities relating to a major investment project of the partnership, for a fiscal period preceding the particular fiscal period, if the eligibility period of the partnership for the preceding fiscal period, in relation to the major investment project, had consisted of the portion of the fiscal period that is included in its compensation period in relation to the major investment project; and

(b)  B is

i.  in relation to a corporation, the aggregate of

(1)  the aggregate of all amounts each of which is the amount that reduced, because of C in the formula in subparagraph a of the first paragraph of section 737.18.17, the amount otherwise deductible by the corporation, under that section, for a taxation year preceding the particular taxation year, and

(2)  the aggregate of all amounts each of which is the amount that would have reduced, because of C in the formula in subparagraph a of the first paragraph of section 737.18.17, the amount that would have been otherwise deductible by the corporation, under that section, in respect of eligible activities relating to a major investment project, for a taxation year preceding the particular taxation year, if the corporation’s eligibility period for the preceding taxation year, in relation to the major investment project, had consisted of the portion of the preceding taxation year that is included in its compensation period in relation to the major investment project, and

ii.  in relation to a partnership, the aggregate of

(1)  the aggregate of all amounts each of which is the amount that reduced, because of F in the formula in subparagraph b of the first paragraph of section 737.18.17, the amount of which a portion would have been otherwise deductible by a corporation that is a member of the partnership, under that section, for a taxation year in which a fiscal period preceding the particular fiscal period of the partnership ends, and

(2)  the aggregate of all amounts each of which is the amount that would have reduced, because of F in the formula in subparagraph b of the first paragraph of section 737.18.17, the amount of which a portion would have been otherwise deductible by a corporation that is a member of the partnership, under that section, in respect of eligible activities relating to a major investment project, for a taxation year in which a fiscal period preceding the particular fiscal period of the partnership ends, if the eligibility period of the partnership for the preceding fiscal period, in relation to the major investment project, had consisted of the portion of the fiscal period that is included in its compensation period in relation to the major investment project.

For the purposes of the definition of "eligibility period" in the first paragraph, an annual qualification certificate, in relation to a major investment project, is no longer valid if the initial qualification certificate issued by the Minister of Finance in relation to the major investment project is revoked.

2002, c. 9, s. 13.