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T-0.1 - Act respecting the Québec sales tax
Section 290
Disposition versions
290. Where a registrant makes a supply, other than an exempt or zero-rated supply, to an individual or a person related to the individual of property or a service, and an amount (in this paragraph referred to as the “benefit amount”) in respect of the supply is required by section 37, 41, 41.1.1, 41.1.2 or 111 of the Taxation Act (chapter I-3) to be included in computing the individual’s income for a taxation year of the individual, or the supply relates to the use or operation of an automobile and an amount (in this paragraph referred to as a “reimbursement”) is paid by the individual or a person related to the individual that reduces the amount in respect of the supply that would otherwise be required under section 41, 41.1.1, 41.1.2 or 111 of the Taxation Act to be so included, the following rules apply:
(1) in the case of a supply of property otherwise than by way of sale, the use made by the registrant in so providing the property to the individual or person related to the individual is deemed to be use in commercial activities of the registrant and, to the extent that the registrant acquired the property or brought the property into Québec for the purpose of making that supply, the registrant is deemed to have so acquired the property or brought the property into Québec for use in commercial activities of the registrant; and
(2) for the purpose of determining the net tax of the registrant,
(a) the total of the benefit amount and all reimbursements is deemed to be the total consideration payable in respect of the provision during the year of the property or service to the individual or person related to the individual,
(b) the tax calculated on the total consideration is deemed to be equal to
i. where the benefit amount is an amount that is or would, if the individual were an employee of the registrant and no reimbursements were paid, be required under section 41.1.1 or 41.1.2 of the Taxation Act to be included in computing the individual’s income, the prescribed percentage of the total consideration,
ii. where the benefit amount is required under section 37 or 41 of the Taxation Act to be included in computing the individual’s income from an office or employment and the last establishment of the employer at which the individual ordinarily worked or to which the individual ordinarily reported in the year in relation to that office or employment is located in Québec, the amount determined by multiplying the total consideration by 9.975/109.975, and
iii. where the benefit amount is required under section 111 of the Taxation Act to be included in computing the individual’s income and the individual is resident in Québec at the end of the year, the amount determined by multiplying the total consideration by 9.975/109.975, and
(c) that tax is deemed to have become collectible, and to have been collected, by the registrant
i. except where subparagraph ii applies, on the last day of February of the year following the taxation year, and
ii. where the benefit amount is or would, if no reimbursements were paid, be required under section 111 of the Taxation Act to be included in computing the individual’s income and relates to the provision of the property or service in a taxation year of the registrant, on the last day of that taxation year.
Subparagraph 2 of the first paragraph does not apply where the registrant is, by reason of section 203 or 206, not entitled to include, in determining an input tax refund, an amount in respect of the tax payable by the registrant in respect of the last acquisition or bringing into Québec of the property or service.
290. Where a registrant makes a supply, other than an exempt or zero-rated supply, to an individual or a person related to the individual of property or a service, and an amount (in this paragraph referred to as the “benefit amount”) in respect of the supply is required by section 37, 41, 41.1.1, 41.1.2 or 111 of the Taxation Act (chapter I-3) to be included in computing the individual’s income for a taxation year of the individual, or the supply relates to the use or operation of an automobile and an amount (in this paragraph referred to as a “reimbursement”) is paid by the individual or a person related to the individual that reduces the amount in respect of the supply that would otherwise be required under section 41, 41.1.1, 41.1.2 or 111 of the Taxation Act to be so included, the following rules apply:
(1) in the case of a supply of property otherwise than by way of sale, the use made by the registrant in so providing the property to the individual or person related to the individual is deemed to be use in commercial activities of the registrant and, to the extent that the registrant acquired the property or brought the property into Québec for the purpose of making that supply, the registrant is deemed to have so acquired the property or brought the property into Québec for use in commercial activities of the registrant; and
(2) for the purpose of determining the net tax of the registrant,
(a) the total of the benefit amount and all reimbursements is deemed to be the total consideration payable in respect of the provision during the year of the property or service to the individual or person related to the individual,
(b) the tax calculated on the total consideration is deemed to be equal to
i. where the benefit amount is an amount that is or would, if the individual were an employee of the registrant and no reimbursements were paid, be required under section 41.1.1 or 41.1.2 of the Taxation Act to be included in computing the individual’s income, the prescribed percentage of the total consideration,
ii. where the benefit amount is required under section 37 or 41 of the Taxation Act to be included in computing the individual’s income from an office or employment and the last establishment of the employer at which the individual ordinarily worked or to which the individual ordinarily reported in the year in relation to that office or employment is located in Québec, the amount determined by multiplying the total consideration by 9.975/109.975, and
iii. where the benefit amount is required under section 111 of the Taxation Act to be included in computing the individual’s income and the individual is resident in Québec at the end of the year, the amount determined by multiplying the total consideration by 9.975/109.975, and
(c) that tax is deemed to have become collectible, and to have been collected, by the registrant
i. except where subparagraph ii applies, on the last day of February of the year following the taxation year, and
ii. where the benefit amount is or would, if no reimbursements were paid, be required under section 111 of the Taxation Act to be included in computing the individual’s income and relates to the provision of the property or service in a taxation year of the registrant, on the last day of that taxation year.
Subparagraph 2 of the first paragraph does not apply where the registrant is, by reason of section 203 or 206, not entitled to include, in determining an input tax refund, an amount in respect of the tax payable by the registrant in respect of the last acquisition or bringing into Québec of the property or service.
290. Where a registrant makes a supply, other than an exempt or zero-rated supply, to an individual or a person related to the individual of property or a service, and an amount (in this paragraph referred to as the “benefit amount”) in respect of the supply is required by section 37, 41, 41.1.1, 41.1.2 or 111 of the Taxation Act (chapter I-3) to be included in computing the individual’s income for a taxation year of the individual, or the supply relates to the use or operation of an automobile and an amount (in this paragraph referred to as a “reimbursement”) is paid by the individual or a person related to the individual that reduces the amount in respect of the supply that would otherwise be required under section 41, 41.1.1, 41.1.2 or 111 of the Taxation Act to be so included, the following rules apply:
(1) in the case of a supply of property otherwise than by way of sale, the use made by the registrant in so providing the property to the individual or person related to the individual is deemed to be use in commercial activities of the registrant and, to the extent that the registrant acquired the property or brought the property into Québec for the purpose of making that supply, the registrant is deemed to have so acquired the property or brought the property into Québec for use in commercial activities of the registrant; and
(2) for the purpose of determining the net tax of the registrant,
(a) the total of the benefit amount and all reimbursements is deemed to be the total consideration payable in respect of the provision during the year of the property or service to the individual or person related to the individual,
(b) the tax calculated on the total consideration is deemed to be equal to
i. where the benefit amount is an amount that is or would, if the individual were an employee of the registrant and no reimbursements were paid, be required under section 41.1.1 or 41.1.2 of the Taxation Act to be included in computing the individual’s income, the prescribed percentage of the total consideration,
ii. where the benefit amount is required under section 37 or 41 of the Taxation Act to be included in computing the individual’s income from an office or employment and the last establishment of the employer at which the individual ordinarily worked or to which the individual ordinarily reported in the year in relation to that office or employment is located in Québec, the amount determined by multiplying the total consideration by 9.5/109.5, and
iii. where the benefit amount is required under section 111 of the Taxation Act to be included in computing the individual’s income and the individual is resident in Québec at the end of the year, the amount determined by multiplying the total consideration by 9.5/109.5, and
(c) that tax is deemed to have become collectible, and to have been collected, by the registrant
i. except where subparagraph ii applies, on the last day of February of the year following the taxation year, and
ii. where the benefit amount is or would, if no reimbursements were paid, be required under section 111 of the Taxation Act to be included in computing the individual’s income and relates to the provision of the property or service in a taxation year of the registrant, on the last day of that taxation year.
Subparagraph 2 of the first paragraph does not apply where the registrant is, by reason of section 203 or 206, not entitled to include, in determining an input tax refund, an amount in respect of the tax payable by the registrant in respect of the last acquisition or bringing into Québec of the property or service.
290. Where a registrant makes a supply, other than an exempt or zero-rated supply, to an individual or a person related to the individual of property or a service, and an amount (in this paragraph referred to as the “benefit amount”) in respect of the supply is required by section 37, 41, 41.1.1, 41.1.2 or 111 of the Taxation Act (chapter I-3) to be included in computing the individual’s income for a taxation year of the individual, or the supply relates to the use or operation of an automobile and an amount (in this paragraph referred to as a “reimbursement”) is paid by the individual or a person related to the individual that reduces the amount in respect of the supply that would otherwise be required under section 41, 41.1.1, 41.1.2 or 111 of the Taxation Act to be so included, the following rules apply:
(1) in the case of a supply of property otherwise than by way of sale, the use made by the registrant in so providing the property to the individual or person related to the individual is deemed to be use in commercial activities of the registrant and, to the extent that the registrant acquired the property or brought the property into Québec for the purpose of making that supply, the registrant is deemed to have so acquired the property or brought the property into Québec for use in commercial activities of the registrant; and
(2) for the purpose of determining the net tax of the registrant,
(a) the total of the benefit amount and all reimbursements is deemed to be the total consideration payable in respect of the provision during the year of the property or service to the individual or person related to the individual,
(b) the tax calculated on the total consideration is deemed to be equal to
i. where the benefit amount is an amount that is or would, if the individual were an employee of the registrant and no reimbursements were paid, be required under section 41.1.1 or 41.1.2 of the Taxation Act to be included in computing the individual’s income, the prescribed percentage of the total consideration,
ii. where the benefit amount is required under section 37 or 41 of the Taxation Act to be included in computing the individual’s income from an office or employment and the last establishment of the employer at which the individual ordinarily worked or to which the individual ordinarily reported in the year in relation to that office or employment is located in Québec, the amount determined by multiplying the total consideration by 8.5/108.5, and
iii. where the benefit amount is required under section 111 of the Taxation Act to be included in computing the individual’s income and the individual is resident in Québec at the end of the year, the amount determined by multiplying the total consideration by 8.5/108.5, and
(c) that tax is deemed to have become collectible, and to have been collected, by the registrant
i. except where subparagraph ii applies, on the last day of February of the year following the taxation year, and
ii. where the benefit amount is or would, if no reimbursements were paid, be required under section 111 of the Taxation Act to be included in computing the individual’s income and relates to the provision of the property or service in a taxation year of the registrant, on the last day of that taxation year.
Subparagraph 2 of the first paragraph does not apply where the registrant is, by reason of section 203 or 206, not entitled to include, in determining an input tax refund, an amount in respect of the tax payable by the registrant in respect of the last acquisition or bringing into Québec of the property or service.
290. Where a registrant makes a supply, other than an exempt or zero-rated supply, to an individual or a person related to the individual of property or a service, and an amount (in this paragraph referred to as the “benefit amount”) in respect of the supply is required by section 37, 41, 41.1.1, 41.1.2 or 111 of the Taxation Act (chapter I-3) to be included in computing the individual’s income for a taxation year of the individual, or the supply relates to the use or operation of an automobile and an amount (in this paragraph referred to as a “reimbursement”) is paid by the individual or a person related to the individual that reduces the amount in respect of the supply that would otherwise be required under section 41, 41.1.1, 41.1.2 or 111 of the Taxation Act to be so included, the following rules apply:
(1) in the case of a supply of property otherwise than by way of sale, the use made by the registrant in so providing the property to the individual or person related to the individual is deemed to be use in commercial activities of the registrant and, to the extent that the registrant acquired the property or brought the property into Québec for the purpose of making that supply, the registrant is deemed to have so acquired the property or brought the property into Québec for use in commercial activities of the registrant; and
(2) for the purpose of determining the net tax of the registrant,
(a) the total of the benefit amount and all reimbursements is deemed to be the total consideration payable in respect of the provision during the year of the property or service to the individual or person related to the individual,
(b) the tax calculated on the total consideration is deemed to be equal to
i. where the benefit amount is an amount that is or would, if the individual were an employee of the registrant and no reimbursements were paid, be required under section 41.1.1 or 41.1.2 of the Taxation Act to be included in computing the individual’s income, the prescribed percentage of the total consideration,
ii. where the benefit amount is required under section 37 or 41 of the Taxation Act to be included in computing the individual’s income from an office or employment and the last establishment of the employer at which the individual ordinarily worked or to which the individual ordinarily reported in the year in relation to that office or employment is located in Québec, the amount determined by multiplying the total consideration by 7.5/107.5, and
iii. where the benefit amount is required under section 111 of the Taxation Act to be included in computing the individual’s income and the individual is resident in Québec at the end of the year, the amount determined by multiplying the total consideration by 7.5/107.5, and
(c) that tax is deemed to have become collectible, and to have been collected, by the registrant
i. except where subparagraph ii applies, on the last day of February of the year following the taxation year, and
ii. where the benefit amount is or would, if no reimbursements were paid, be required under section 111 of the Taxation Act to be included in computing the individual’s income and relates to the provision of the property or service in a taxation year of the registrant, on the last day of that taxation year.
Subparagraph 2 of the first paragraph does not apply where the registrant is, by reason of section 203 or 206, not entitled to include, in determining an input tax refund, an amount in respect of the tax payable by the registrant in respect of the last acquisition or bringing into Québec of the property or service.
290. Where a registrant makes a supply, other than an exempt or zero-rated supply, to an individual or a person related to the individual of property or a service, and an amount (in this paragraph referred to as the “benefit amount”) in respect of the supply is required by section 37, 41, 41.1.1, 41.1.2 or 111 of the Taxation Act (chapter I-3) to be included in computing the individual’s income for a taxation year of the individual, or the supply relates to the use or operation of an automobile and an amount (in this paragraph referred to as a “reimbursement”) is paid by the individual or a person related to the individual that reduces the amount in respect of the supply that would otherwise be required under section 41, 41.1.1, 41.1.2 or 111 of the Taxation Act to be so included, the following rules apply:
(1) in the case of a supply of property otherwise than by way of sale, the use made by the registrant in so providing the property to the individual or person related to the individual is deemed to be use in commercial activities of the registrant and, to the extent that the registrant acquired the property or brought the property into Québec for the purpose of making that supply, the registrant is deemed to have so acquired the property or brought the property into Québec for use in commercial activities of the registrant; and
(2) for the purpose of determining the net tax of the registrant,
(a) the total of the benefit amount and all reimbursements is deemed to be the total consideration payable in respect of the provision during the year of the property or service to the individual or person related to the individual,
(b) the tax calculated on the total consideration is deemed to be equal to
i. where the benefit amount is an amount that is or would, if the individual were an employee of the registrant and no reimbursements were paid, be required under section 41.1.1 or 41.1.2 of the Taxation Act to be included in computing the individual’s income, the prescribed percentage of the total consideration,
ii. where the benefit amount is required under section 37 or 41 of the Taxation Act to be included in computing the individual’s income from an office or employment and the last establishment of the employer at which the individual ordinarily worked or to which the individual ordinarily reported in the year in relation to that office or employment is located in Québec, the amount determined by multiplying the total consideration by 7.5/107.5, and
iii. where the benefit amount is required under section 111 of the Taxation Act to be included in computing the individual’s income and the individual is resident in Québec at the end of the year, the amount determined by multiplying the total consideration by 7.5/107.5, and
(c) that tax is deemed to have become collectible, and to have been collected, by the registrant
i. except where subparagraph ii applies, on the last day of February of the year following the taxation year, and
ii. where the benefit amount is or would, if no reimbursements were paid, be required under section 111 of the Taxation Act to be included in computing the individual’s income and relates to the provision of the property or service in a taxation year of the registrant, on the last day of that taxation year.
This section does not apply where the registrant is, by reason of section 203, 205 or 206, not entitled to include, in determining an input tax refund, an amount in respect of the tax payable by the registrant in respect of the last acquisition or bringing into Québec of the property or service.
290. Where a registrant makes a supply, other than an exempt supply, to a person of property or a service, and an amount (in this paragraph referred to as the “benefit amount”) in respect of the property or service is required under section 37, 41, 41.1.1, 41.1.2 or 111 of the Taxation Act (chapter I-3) to be included in computing the person’s income for a taxation year of the person, the following rules apply:
(1) in the case of a supply of property otherwise than by way of sale, the use made by the registrant in so providing the property to the person is deemed to be use in commercial activities of the registrant, and to the extent that the registrant acquired the property for the purpose of making that supply, the registrant is deemed to have so acquired the property for use in commercial activities of the registrant; and
(2) for the purpose of determining the net tax of the registrant,
(a) the registrant is deemed to have made that supply to the person for consideration equal to the total of
i. the consideration, if any, for the supply, as otherwise determined, and
ii. the amount (in this paragraph referred to as the “adjusted benefit”) that is the total of the amount by which the benefit amount exceeds the amount, if any, included in the benefit amount that may reasonably be attributed to tax imposed under an Act of the Legislature of a province other than Québec or of the Northwest Territories or the Yukon Territory that is a prescribed tax for the purposes of section 154 of the Excise Tax Act (Revised Statutes of Canada, 1985, chapter E-15) and the amount that is required under section 41.2 or 112.2 of the Taxation Act to be included in computing the person’s income for the year in respect of the property or service; and
(b) tax calculated on the adjusted benefit is deemed to have become collectible, and to have been collected, by the registrant
i. in the case of a supply of property or a service in respect of which an amount is required under section 37, 41, 41.1.1 or 41.1.2 of the Taxation Act to be included in computing the person’s income for a particular taxation year of the person, on the last day of February of the year following the particular taxation year, and
ii. in the case of a supply of property or a service in respect of which an amount is required under section 111 of the Taxation Act to be included in computing the person’s income, on the last day of the registrant’s taxation year in which the property or service is so supplied to the person;
(c) where the benefit amount is an amount that is or would, if the person were an employee of the registrant, be required under section 41.1.1 or 41.1.2 of the Taxation Act to be included in computing the person’s income, the tax calculated on the adjusted benefit is deemed to be equal to the prescribed percentage of the adjusted benefit.
This section does not apply where the registrant is, by reason of section 203, 205 or 206, not entitled to include, in determining an input tax refund, an amount in respect of the tax payable by the registrant in respect of the last acquisition or bringing into Québec of the property or service.
290. Where a registrant makes a supply, other than an exempt supply, to a person of property or a service, and an amount (in this paragraph referred to as the “benefit amount”) in respect of the property or service is required by section 37, 41 or 111 of the Taxation Act (chapter I-3) to be included in computing the person’s income for a taxation year of the person, the following rules apply:
(1) in the case of a supply of property otherwise than by way of sale, the use made by the registrant in so providing the property to the person is deemed to be use in commercial activities of the registrant, and to the extent that the registrant acquired the property for the purpose of making that supply, the registrant is deemed to have so acquired the property for use in commercial activities of the registrant; and
(2) for the purpose of determining the net tax of the registrant,
(a) the registrant is deemed to have made that supply to the person for consideration equal to the total of
i. the consideration, if any, for the supply, as otherwise determined, and
ii. the amount (in this paragraph referred to as the “adjusted benefit”) that is the total of the amount by which the benefit amount exceeds the amount, if any, included in the benefit amount that may reasonably be attributed to tax imposed under an Act of the Legislature of a province other than Québec or of the Northwest Territories or the Yukon Territory that is a prescribed tax for the purposes of section 154 of the Excise Tax Act (Revised Statutes of Canada, 1985, chapter E-15) and the amount that is required under section 41.2 or 112.2 of the Taxation Act to be included in computing the person’s income for the year in respect of the property or service; and
(b) tax calculated on the adjusted benefit is deemed to have become collectible, and to have been collected, by the registrant
i. in the case of a supply of property or a service in respect of which an amount is required under section 37 or 41 of the Taxation Act to be included in computing the person’s income for a particular taxation year of the person, on the last day of February of the year following the particular taxation year, and
ii. in the case of a supply of property or a service in respect of which an amount is required under section 111 of the Taxation Act to be included in computing the person’s income, on the last day of the registrant’s taxation year in which the property or service is so supplied to the person.
This section does not apply where
(1) the registrant is, by reason of section 203, 205, 206 or 206.1, not entitled to include, in determining an input tax refund, an amount in respect of tax payable by the registrant in respect of the last acquisition or bringing into Québec of the property or service;
(2) the property or service is acquired or brought into Québec before 1 July 1992, but if it were acquired or brought into Québec after 30 June 1992, the registrant would not be entitled to claim an input tax refund in respect thereof by reason of section 206.1;
(3) the tax prescribed in Chapter II of the Retail Sales Tax Act (chapter I-1) applies in respect of the property or service for the taxation year 1992; or
(4) the tax prescribed in Chapter II of the Retail Sales Tax Act does not apply in respect of the property or service for the taxation year 1992, by reason of an exemption under Division III of that chapter.
290. Where at any time a registrant makes available to a person property or a service, and an amount (in this paragraph referred to as the “benefit amount”) in respect of the property or service is required by section 37, 41 or 111 of the Taxation Act (chapter I-3) to be included in computing the person’s income for a taxation year of the person, the registrant is deemed to have made a supply of the property or service for consideration equal to the total of the following amounts:
(1) the amount by which the benefit amount exceeds the amount, if any, included in the benefit that may reasonably be attributed to tax imposed under the Retail Sales Tax Act (chapter I-1) or tax imposed under an Act of the legislature of a province other than Québec or of the Northwest Territories or the Yukon Territory that is a prescribed tax for the purposes of section 52; and
(2) the amount that is required under section 41.2 or 112.2 of the Taxation Act to be included in computing the person’s income for the year in respect of the property or service.
This section does not apply where
(1) the registrant is, by reason of section 203, 205, 206 or 206.1, not entitled to include, in determining an input tax refund, an amount in respect of tax payable by the registrant in respect of the property or service;
(2) the property or service is acquired or brought into Québec before 1 July 1992, but if it were acquired or brought after 30 June 1992, the registrant would not be entitled to claim an input tax refund in respect thereof by reason of section 206.1;
(3) the tax prescribed in Chapter II of the Retail Sales Tax Act applies in respect of the property or service for the taxation year 1992; or
(4) the tax prescribed in Chapter II of the Retail Sales Tax Act does not apply in respect of the property or service for the taxation year 1992, by reason of an exemption under Division III of that chapter.
290. Where at any time a registrant makes available to a person property or a service, and an amount (in this paragraph referred to as the “benefit amount”) in respect of the property or service is required by section 37, 41 or 111 of the Taxation Act (chapter I-3) to be included in computing the person’s income for a taxation year of the person, the registrant is deemed to have made a supply of the property or service for consideration equal to the total of the following amounts:
(1) the amount by which the benefit amount exceeds the amount, if any, included in the benefit amount that may reasonably be attributed to tax imposed under an Act of the legislature of Québec, another province, the Northwest Territories or the Yukon Territory that is a prescribed tax for the purposes of section 52; and
(2) the amount that is required under section 41.2 or 112.2 of the Taxation Act to be included in computing the person’s income for the year in respect of the property or service.
This section does not apply where a registrant is, by reason of section 203, 205 or 206, not entitled to include, in determining an input tax refund, an amount in respect of tax payable by the registrant in respect of the property or service.
