I-3 - Taxation Act

Section 965.126 Disposition versions

2010-04-20

965.126. An individual resident in Québec on 31 December in a year who acquires during the year a qualifying share or qualifying security that the individual includes in a stock savings plan II under which the individual is a beneficiary, may deduct in computing the individual’s taxable income for the year, in respect of the aggregate of such plans, an amount not exceeding the lesser of the amounts determined by the following formulas:

(a)  A + B; and

(b)  (C − D) − (E − F).

In the formulas in the first paragraph,

(a)  A is the adjusted cost of the qualifying shares that the individual acquired during the year and included in those plans on or before 31 January of the following year;

(b)  B is the adjusted cost of the qualifying securities that the individual acquired during the year and included in those plans on or before 31 January of the following year, and that are valid qualifying securities in respect of the year;

(c)  C is the adjusted cost of the shares and securities included in those plans, at the end of the year, including those that the individual acquired in the year and included in those plans on or before 31 January of the following year;

(d)  D is the individual’s coverage deficiency amounts for the year and for each of the preceding two years;

(e)  E is the amounts that the individual deducted under section 726.4.0.1 for the preceding two years; and

(f)  F is any amount described in section 310 that the individual was required to include in computing the individual’s income for the preceding year in respect of a stock savings plan II.

2006, c. 13, s. 80; 2010, c. 5, s. 125.

2006-06-13

965.126. An individual resident in Québec on 31 December in a year who acquires during the year a qualifying share or qualifying security that the individual includes in an SME growth stock plan under which the individual is a beneficiary, may deduct in computing the individual’s taxable income for the year, in respect of the aggregate of such plans, an amount not exceeding the lesser of the amounts determined by the following formulas:

(a)  A + B; and

(b)  (C − D) − (E − F).

In the formulas in the first paragraph,

(a)  A is the adjusted cost of the qualifying shares that the individual acquired during the year and included in those plans on or before 31 January of the following year;

(b)  B is the adjusted cost of the qualifying securities that the individual acquired during the year and included in those plans on or before 31 January of the following year, and that are valid qualifying securities in respect of the year;

(c)  C is the adjusted cost of the shares and securities included in those plans, at the end of the year, including those that the individual acquired in the year and included in those plans on or before 31 January of the following year;

(d)  D is the individual’s coverage deficiency amounts for the year and for each of the preceding three years;

(e)  E is the amounts that the individual deducted under section 726.4.0.1 for the preceding three years; and

(f)  F is any amount described in section 310 that the individual was required to include in computing the individual’s income for the preceding two years in respect of an SME growth stock plan.

2006, c. 13, s. 80.