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T-0.1, r. 2 - Regulation respecting the Québec sales tax
Section 332r2
Disposition versions
332R2. For the purposes of section 332 of the Act, any other corporation is a prescribed corporation in relation to a particular corporation if
(1) it is the case that
(a) the specified shares of the other corporation, each of which meets the following conditions, represent not less than 90% of the total value and number of all such shares:
i. it is owned by the particular corporation,
ii. it is owned by a corporation that is closely related to the particular corporation by reason of paragraph 1 of section 332 of the Act,
iii. it is owned by any of the persons described in subparagraph 1 of the second paragraph, or
iv. it cannot be traded on a stock exchange and is held in trust for the benefit of the other corporation or of an employee referred to in subparagraph a of subparagraph 1 of the second paragraph and the beneficial ownership of which by the employee arose in respect of the employment of the employee;
(b) the specified shares of the other corporation, each of which is owned by a corporation referred to in subparagraph i or ii of subparagraph a, represent not less than 50% of the total value and number of all such shares; and
(c) the particular corporation would hold qualifying voting control in respect of the other corporation if the particular corporation were to own
i. the specified shares of the other corporation that are referred to in subparagraphs i to iv of subparagraph a, and
ii. the issued and outstanding shares of the capital stock of the other corporation that are not specified shares and that would be referred to in subparagraphs i to iv of subparagraph a if they were specified shares; or
(2) qualifying voting control in respect of the other corporation is held by, and not less than 90% of the total value and number of all specified shares of the other corporation are owned by,
(a) the particular corporation;
(b) a corporation that is closely related to the particular corporation by reason of paragraph 1 of section 332 of the Act; or
(c) a corporation that is a prescribed corporation in relation to the particular corporation by reason of subparagraph 1.
For the purposes of subparagraph iii of subparagraph a of subparagraph 1 of the first paragraph,
(1) the persons referred to in that subparagraph iii are
(a) an employee of the other corporation, of a corporation that is closely related to the other corporation by reason of paragraph 1 of section 332 of the Act or of a corporation referred to in subparagraph i or ii of subparagraph a of subparagraph 1 of the first paragraph; or
(b) a corporation in respect of which the employees referred to in subparagraph a hold qualifying voting control and own not less than 90% of the total value and number of all specified shares; and
(2) the specified shares of the corporation referred to in subparagraph b of subparagraph 1, or of the other corporation, as the case may be, that are owned by employees referred to in subparagraph 1 are shares that must not be traded on a stock exchange and the ownership of which by the employees must arise in respect of their employment.
332R2. For the purposes of section 332 of the Act, any other corporation is a prescribed corporation in relation to a particular corporation, as the case may be:
(1) where each of the specified shares of the other corporation representing not less than 50% of the total value and number of all specified shares of the other corporation is owned by a corporation referred to in subparagraph a or b, and each of the specified shares of the other corporation representing not less than 90% of the total value and number of all specified shares of the other corporation
(a) is owned by the particular corporation;
(b) is owned by a corporation that is closely related to the particular corporation by reason of subparagraph 1 of the first paragraph of section 332 of the Act;
(c) is owned by:
i. an employee of the other corporation, of a corporation that is closely related to the other corporation by reason of subparagraph 1 of the first paragraph of section 332 of the Act or of a corporation referred to in subparagraph a or b, or
ii. a corporation, not less than 90% of the total value and number of all specified shares of which are owned by employees referred to in subparagraph i; or
(d) cannot be traded on a stock exchange and is held in trust for the benefit of the other corporation or of an employee referred to in subparagraph i of subparagraph c and the beneficial ownership of which by the employee arose in respect of the employment of the employee; or
(2) where the specified shares of the other corporation representing not less than 90% of the total value and number of all specified shares of the other corporation are owned by
(a) the particular corporation;
(b) a corporation that is closely related to the particular corporation by reason of subparagraph 1 of the first paragraph of section 332 of the Act; or
(c) a corporation that is a prescribed corporation in relation to the particular corporation by reason of subparagraph 1.
For the purposes of subparagraph c of subparagraph 1 of the first paragraph, the specified shares of the corporation referred to in subparagraph ii of that subparagraph c, or of the other corporation, as the case may be, that are owned by employees referred to in that subparagraph c are shares that cannot be traded on a stock exchange and the ownership of which by the employees arose in respect of their employment.
332R2. For the purposes of section 332 of the Act, another corporation is a prescribed corporation in relation to a particular corporation where the other corporation is a registrant resident in Québec and
(1) where each of the specified shares of the other corporation representing not less than 50% of the total value and number of all specified shares of the other corporation is owned by a corporation referred to in subparagraph a or b, and each of the specified shares of the other corporation representing not less than 90% of the total value and number of all specified shares of the other corporation
(a) is owned by the particular corporation;
(b) is owned by a corporation that is closely related to the particular corporation by reason of subparagraph 1 of the first paragraph of section 332 of the Act;
(c) is owned by:
i. an employee of the other corporation, of a corporation that is closely related to the other corporation by reason of subparagraph 1 of the first paragraph of section 332 of the Act or of a corporation referred to in subparagraph a or b, or
ii. a corporation, not less than 90% of the total value and number of all specified shares of which are owned by employees referred to in subparagraph i; or
(d) cannot be traded on a stock exchange and is held in trust for the benefit of the other corporation or of an employee referred to in subparagraph i of subparagraph c and the beneficial ownership of which by the employee arose in respect of the employment of the employee; or
(2) where the specified shares of the other corporation representing not less than 90% of the total value and number of all specified shares of the other corporation are owned by
(a) the particular corporation;
(b) a corporation that is closely related to the particular corporation by reason of subparagraph 1 of the first paragraph of section 332 of the Act; or
(c) a corporation that is a prescribed corporation in relation to the particular corporation by reason of subparagraph 1.
For the purposes of subparagraph c of subparagraph 1 of the first paragraph, the specified shares of the corporation referred to in subparagraph ii of that subparagraph c, or of the other corporation, as the case may be, that are owned by employees referred to in that subparagraph c are shares that cannot be traded on a stock exchange and the ownership of which by the employees arose in respect of their employment.
