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T-0.1 - Act respecting the Québec sales tax

Section 318
Disposition versions

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318. Where at any time, as a consequence of the breach, modification or termination, after 30 June 1992, of an agreement for the making of a taxable supply, other than a zero-rated supply, of property or a service in Québec by a registrant to a person, an amount is paid or forfeited to the registrant otherwise than as consideration for the supply, or a debt or other obligation of the registrant is reduced or extinguished without payment being made in respect of the debt or obligation,
(1)  the person is deemed to have paid, at that time, an amount of consideration for the supply equal to the amount determined by multiplying the amount paid or forfeited, or by which the debt or obligation was reduced or extinguished, as the case may be, by 100/109.975; and
(2)  the registrant is deemed to have collected, and the person is deemed to have paid, at that time, all tax in respect of the supply that is calculated on that consideration, which is deemed to be equal to tax under section 16 calculated on that consideration.
1991, c. 67, s. 318; 1994, c. 22, s. 537; 1997, c. 85, s. 600; 2010, c. 5, s. 221; 2011, c. 6, s. 258; 2012, c. 28, s. 101.
318. Where at any time, as a consequence of the breach, modification or termination, after 30 June 1992, of an agreement for the making of a taxable supply, other than a zero-rated supply, of property or a service in Québec by a registrant to a person, an amount is paid or forfeited to the registrant otherwise than as consideration for the supply, or a debt or other obligation of the registrant is reduced or extinguished without payment being made in respect of the debt or obligation,
(1)  the person is deemed to have paid, at that time, an amount of consideration for the supply equal to the amount determined by multiplying the amount paid or forfeited, or by which the debt or obligation was reduced or extinguished, as the case may be, by 100/109.5; and
(2)  the registrant is deemed to have collected, and the person is deemed to have paid, at that time, all tax in respect of the supply that is calculated on that consideration, which is deemed to be equal to tax under section 16 calculated on that consideration.
1991, c. 67, s. 318; 1994, c. 22, s. 537; 1997, c. 85, s. 600; 2010, c. 5, s. 221; 2011, c. 6, s. 258.
318. Where at any time, as a consequence of the breach, modification or termination, after 30 June 1992, of an agreement for the making of a taxable supply, other than a zero-rated supply, of property or a service in Québec by a registrant to a person, an amount is paid or forfeited to the registrant otherwise than as consideration for the supply, or a debt or other obligation of the registrant is reduced or extinguished without payment being made in respect of the debt or obligation,
(1)  the person is deemed to have paid, at that time, an amount of consideration for the supply equal to the amount determined by multiplying the amount paid or forfeited, or by which the debt or obligation was reduced or extinguished, as the case may be, by 100/108.5; and
(2)  the registrant is deemed to have collected, and the person is deemed to have paid, at that time, all tax in respect of the supply that is calculated on that consideration, which is deemed to be equal to tax under section 16 calculated on that consideration.
1991, c. 67, s. 318; 1994, c. 22, s. 537; 1997, c. 85, s. 600; 2010, c. 5, s. 221.
318. Where at any time, as a consequence of the breach, modification or termination, after 30 June 1992, of an agreement for the making of a taxable supply, other than a zero-rated supply, of property or a service in Québec by a registrant to a person, an amount is paid or forfeited to the registrant otherwise than as consideration for the supply, or a debt or other obligation of the registrant is reduced or extinguished without payment being made in respect of the debt or obligation,
(1)  the person is deemed to have paid, at that time, an amount of consideration for the supply equal to the amount determined by multiplying the amount paid or forfeited, or by which the debt or obligation was reduced or extinguished, as the case may be, by 100/107.5; and
(2)  the registrant is deemed to have collected, and the person is deemed to have paid, at that time, all tax in respect of the supply that is calculated on that consideration, which is deemed to be equal to tax under section 16 calculated on that consideration.
1991, c. 67, s. 318; 1994, c. 22, s. 537; 1997, c. 85, s. 600.
318. Where at any time, as a consequence of the breach, modification or termination, after 30 June 1992, of an agreement for the making of a taxable supply, other than a zero-rated supply, of property or a service in Québec by a registrant, an amount is paid or forfeited by a person to the registrant otherwise than as consideration for the supply, the following rules apply:
(1)  the registrant is deemed to have made to the person, and the person is deemed to have received from the registrant, a taxable supply of the property or service for consideration equal to the consideration fraction of the amount paid or forfeited; and
(2)  the registrant is deemed to have collected, and the person is deemed to have paid, at that time, tax in respect of the supply calculated on that consideration.
However, where the agreement was entered into in writing before 1 July 1992, the amount is paid or forfeited after 1992 and tax in respect of the amount was not contemplated in the agreement, subparagraph 2 of the first paragraph does not apply.
1991, c. 67, s. 318; 1994, c. 22, s. 537.
318. Where at any time, as a consequence of the breach, modification or termination of an agreement for the making of a taxable supply, other than a zero-rated supply, of property or a service in Québec by or to a registrant, an amount is paid or forfeited, or becomes payable, by a person to the registrant otherwise than as consideration for the supply, the following rules apply:
(1)  the registrant is deemed to have made a taxable supply of the property or service in Québec to the person;
(2)  the registrant is deemed to have collected tax from the person at that time, equal to the tax fraction of the amount so paid, forfeited or payable; and
(3)  the person is deemed to have received that supply and to have paid, at that time, that tax.
1991, c. 67, s. 318.
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