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

Section 156.7.6r1 Disposition versions

2021-03-10

156.7.6R1. Depreciable property of a taxpayer referred to in section 156.7.6 of the Act means

(a)  property that

i.  before being acquired by the taxpayer, has not been used for any purpose nor acquired for use or lease for any purpose whatsoever,

ii.  has not been acquired by the taxpayer from a person or partnership with which the taxpayer was not dealing at arm’s length at the time of the acquisition,

iii.  is property that

(1)  is included in Class 43.1 or 43.2 in Schedule B,

(2)  is included in Class 50 in Schedule B, unless it was acquired before 1 July 2019 pursuant to an obligation in writing entered into before 4 December 2018 or its construction, by or on behalf of the taxpayer, began before 4 December 2018, or

(3)  is included in Class 53 in Schedule B or, if it is acquired after 31 December 2025, is included in Class 43 in that Schedule and would have been included in that Class 53 had it been acquired in 2025, unless it is acquired before 1 July 2019 pursuant to an obligation in writing entered into before 4 December 2018 or its construction, by or on behalf of the taxpayer, began before 4 December 2018, and

iv.  must begin to be used within a reasonable time after being acquired and be, for a period of at least 730 consecutive days after the day on which that use begins, or a shorter period in the case of the involuntary loss or destruction of the property by fire, theft or water, or material breakdown of the property, used mainly in Québec and in the course of the carrying on of a business by

(1)  the taxpayer, at any time in that period during which the taxpayer owns the property and does not lease it to another person,

(2)  a person, other than the taxpayer, having acquired the property in any of the circumstances described in section 130R149, at any time in that period during which the person owns the property and does not lease it to another person, or

(3)  a lessee of the property, at any time in that period during which the taxpayer or, where applicable, a person referred to in subparagraph ii leases the property to the lessee; or

(b)  qualified intellectual property, within the meaning of section 130R3.

S.Q. 2020, c. 16, s. 251; O.C. 164-2021, s. 29.

2020-09-24

156.7.6R1. Depreciable property of a taxpayer referred to in section 156.7.6 of the Act means

(a)  property that

i.  before being acquired by the taxpayer, has not been used for any purpose nor acquired for use or lease for any purpose whatsoever,

ii.  has not been acquired by the taxpayer from a person or partnership with which the taxpayer was not dealing at arm’s length at the time of the acquisition,

iii.  is property that

(1)  is included in Class 43.1 or 43.2 in Schedule B,

(2)  is included in Class 50 in Schedule B, unless it was acquired before 1 July 2019 pursuant to an obligation in writing entered into before 4 December 2018 or its construction, by or on behalf of the taxpayer, began before 4 December 2018, or

(3)  is included in Class 53 in Schedule B or, if it is acquired after 31 December 2025, is included in Class 43 in that Schedule and would have been included in that Class 53 had it been acquired in 2025, unless it is acquired before 1 July 2019 pursuant to an obligation in writing entered into before 4 December 2018 or its construction, by or on behalf of the taxpayer, began before 4 December 2018, and

iv.  must begin to be used within a reasonable time after being acquired and be, for a period of at least 730 consecutive days after the day on which that use begins, or a shorter period in the case of the involuntary loss or destruction of the property by fire, theft or water, or material breakdown of the property, used mainly in Québec and in the course of the carrying on of a business by

(1)  the taxpayer, at any time in that period during which the taxpayer owns the property and does not lease it to another person,

(2)  a person, other than the taxpayer, having acquired the property in any of the circumstances described in section 130R149, at any time in that period during which the person owns the property and does not lease it to another person, or

(3)  a lessee of the property, at any time in that period during which the taxpayer or, where applicable, a person referred to in subparagraph ii leases the property to the lessee; or

(b)  incorporeal property that

i.  is included in any of Classes 14, 14.1 and 44 in Schedule B,

ii.  is acquired by the taxpayer in the course of a technology transfer or developed by or on behalf of the taxpayer to enable the taxpayer to implement an innovation or invention concerning the taxpayer’s business,

iii.  begins to be used within a reasonable time following its acquisition or the completion of its development,

iv.  is used only in Québec during the period covering the process of implementing the innovation or invention, in subparagraph v referred to as the “implementation period”, and primarily in the course of the carrying on of a business by the taxpayer or, where applicable, by any other person who acquired the property in any of the circumstances described in section 130R149,

v.  is not, during the implementation period, a property used for the purpose of gaining or producing gross revenue that is rent or a royalty, and

vi.  is not acquired by the taxpayer from a person or partnership with which the taxpayer is not dealing at arm’s length.

For the purposes of subparagraph b of the first paragraph,

(a)  an incorporeal property means a patent or a right to use patented information, a licence, a permit, know-how, a commercial secret or other similar property constituting knowledge, but does not include a trademark, an industrial design, a copyright or other similar property constituting the expression of knowledge;

(b)  a technology transfer means the transmission to a taxpayer of knowledge in the form of know-how, techniques, processes or formulas, with a view to enabling the taxpayer to implement an innovation or invention concerning the taxpayer’s business; and

(c)  a property is deemed to be used only in Québec where it is used as part of the process of implementing an innovation or invention and where the efforts to implement that innovation or invention are made only in Québec.

S.Q. 2020, c. 16, s. 251.