I-3 - Taxation Act

Section 1029.8.36.0.106.16 Disposition versions

2023-04-01

1029.8.36.0.106.16. Where, after 31 March 2023, a qualified corporation produces an eligible biofuel in Québec and stores it in a reservoir with another eligible biofuel it produced, with another type of biofuel it produced or with a biofuel that it acquired from a person or partnership and that constitutes another source of supply for the reservoir, each shipment of biofuel the qualified corporation draws from that reservoir for a particular month (in this section referred to as a “shipment of mixed biofuel”) is deemed to consist of distinct shipments derived from each of the qualified corporation’s biofuel production units or each of the other sources of supply, as the case may be, that feeds the reservoir and in respect of which the number of litres is equal to that obtained by multiplying the number of litres making up the shipment of mixed biofuel by the proportion determined, in respect of each production unit or each of the other sources of supply, by the formula

(A + B)/(B + C + D).

In the formula in the first paragraph,

(a)  A is the portion of the stock of mixed biofuel in the reservoir that is attributable to the qualified corporation’s biofuel production unit or the other source of supply, as the case may be, at the beginning of the particular month;

(b)  B is the number of litres of biofuel derived from the qualified corporation’s biofuel production unit or the other source of supply, as the case may be, that is added to the reservoir during the particular month;

(c)  C is the number of litres of biofuel that is added to the reservoir during the particular month and that is not derived from the qualified corporation’s biofuel production unit or the other source of supply, as the case may be; and

(d)  D is the number of litres of biofuel that corresponds to the total stock of mixed biofuel in the reservoir at the beginning of the particular month.

For the purposes of subparagraph a of the second paragraph, the portion of the stock of mixed biofuel in the reservoir that is attributable to the qualified corporation’s biofuel production unit or the other source of supply, as the case may be, at the beginning of the particular month is equal to the number of litres of biofuel obtained by multiplying the number of litres of biofuel that corresponds to the total stock of mixed biofuel in the reservoir at the beginning of the particular month by the proportion referred to in the first paragraph that applied for the month that precedes the particular month in respect of the qualified corporation’s biofuel production unit or the other source of supply, as the case may be.

For the purposes of this division, the portion of a shipment of mixed biofuel for a particular month that, under the first paragraph, is deemed to be a distinct shipment derived from a biofuel production unit of a qualified corporation is deemed to be a shipment of eligible biofuel of the qualified corporation for the particular month only if the qualified corporation’s facilities allow for the precise measurement of the number of litres of biofuel derived from each of the qualified corporation’s biofuel production units and from each of the other sources of supply that feeds the reservoir before the biofuel is added.

For the purposes of this division, where, after 31 March 2023, a qualified corporation produces eligible biofuel in Québec and stores it in a reservoir with biofuel that it produced before 1 April 2023 or that it acquired before that date (in this paragraph referred to as the “previous stock”), the following rules apply:

(a)  despite the first paragraph, a particular shipment of biofuel drawn from the reservoir is deemed to be a shipment drawn from the previous stock up to the number of litres that corresponds to the previous stock immediately before the particular shipment; and

(b)  the number of litres of biofuel that corresponds to the total stock of mixed biofuel in the reservoir at the beginning of a particular month must be determined without taking the previous stock into account.

2023, c. 2, s. 44.