I-3, r. 1 - Regulation respecting the Taxation Act

Section 130r110 Disposition versions

2012-09-01

130R110. The amount referred to in section 130R109 is equal to the aggregate of

(a)  where the principal photography or taping of the property referred to therein is not completed until the 60 days immediately following the end of the particular year referred to therein, the amount by which the capital cost to the taxpayer of the property at the end of that year exceeds the aggregate of the amounts computed under paragraphs c to f in respect of the property at the end of that year and the amount that may reasonably be considered to be the proportional share of the taxpayer in the production costs incurred in respect of the property before the end of that year;

(b)  where the principal filming or taping work of the property referred to is not completed before the expiry of 60 days immediately following the end of the particular year, the amount by which the capital cost to the taxpayer of the property at the end of that year exceeds the aggregate of the amounts computed under paragraphs c to f in respect of the property at the end of that year and the amount that may be considered to be the proportional share of the taxpayer of the lesser of the production cost incurred in respect of the property before the end of that year, and the proportion of the production cost incurred with respect to the property before the time when the principal filming or taping work of the property was completed, that the proportion, certified by the Société de développement des entreprises culturelles or the Minister of Communications of Canada, as the case may be, that the part of the work completed at the end of that year is of the whole of the work;

(c)  where a revenue guarantee, other than a revenue guarantee that is certified by the Minister of Communications of Canada to be a guarantee under which the person who agrees to provide the revenue is a licensed broadcaster or a bona fide film or tape distributor, is granted in respect of the property referred to therein at any time before the later of the day on which the principal photography or taping was completed and the day on which the taxpayer acquired the property and that, by reason of that guarantee, it may reasonably be considered certain, having regard to all the circumstances, that the taxpayer will receive revenue according to the terms and conditions of that guarantee, the amount that may reasonably be considered to be the portion of the revenue that the taxpayer did not include in computing the taxpayer’s income for the particular year referred to therein or for a prior taxation year;

(d)  where a revenue guarantee is entered into at any time in respect of the property referred to therein, other than a revenue guarantee in respect of which paragraph c applies, or under which the person who agrees to provide the revenue under the terms of the guarantee does not deal at arm’s length with the taxpayer or the person from whom the taxpayer acquired the property, and in respect of which the Minister of Communications of Canada certifies that the person who agrees to provide the revenue under the terms of the guarantee is a licenced broadcaster or bona fide film or tape distributor and that the cost of the property does not include any amount for or in respect of the guarantee, and where the taxpayer and the person who agrees to furnish the revenue under the terms of the guarantee do not deal at arm’s length, the person from whom the taxpayer acquired the property and the person who agrees to furnish the revenue under the terms of the guarantee do not deal at arm’s length or the person from whom the taxpayer acquired the property or a person who does not deal at arm’s length with that person agrees, in any manner whatsoever, to fulfill, in whole or in part, the obligations of the person who agrees to furnish the revenue under the terms of the guarantee, the amount that may reasonably be considered to be the portion of the revenue that the taxpayer is to receive under the terms of the guarantee that has not been included in computing the taxpayer’s income for the particular year referred to therein or for a prior taxation year;

(e)  where a revenue guarantee is granted at any time in respect of the property referred to therein, other than a guarantee in respect of which paragraph c or d applies, the amount that may reasonably be considered to be the portion of the revenue that the taxpayer is to receive according to the terms and conditions of that guarantee, that the taxpayer is not entitled to until the fourth year following the first day on which the person who agrees to furnish the revenue according to the terms and conditions of that guarantee has the right to use the property and that was not included in computing the income of the taxpayer for the particular year referred to therein or for a prior taxation year; and

(f)  the portion of any debt obligation of the taxpayer outstanding at the end of that year that is convertible into an interest in the property referred to in section 130R109.

s. 130R55.6; O.C. 1983-80, s. 7; O.C. 1535-81, s. 4; R.R.Q., 1981, c. I-3, r. 1, s. 130R55.6; O.C. 2727-84, s. 6; S.Q. 1984,c. 47, s. 216; O.C. 615-88, s. 8; Erratum, 1988 G.O. 2, 4642; O.C. 1666-90, s. 4; O.C. 1114-92, s. 13; S.Q. 1994, c. 21, s. 50; O.C. 216-95; O.C. 1249-2005, s. 5; O.C. 134-2009, s. 1.