I-3 - Taxation Act

Section 1029.8.36.0.17 Disposition versions

2009-06-04

1029.8.36.0.17. In this division,

“acquisition costs” incurred by a corporation in respect of qualified property means the aggregate of the costs incurred by the corporation to acquire the property and that are included in the capital cost of the property, other than the costs so included under section 180 or 182;

“associated group” in a taxation year means the group formed by all of the corporations that are associated with each other in the year;

“biotechnology development centre” has the meaning assigned by the first paragraph of section 771.1;

“Centre national des nouvelles technologies de Québec” means all the premises designated as such by Investissement Québec;

“Cité du multimédia” means all the buildings designated as such by the Minister of Finance;

“contract payment” means an amount payable under a contract by the Government of Canada or of a province, by a municipality or other public authority in Canada or by a person exempt from tax under this Part by reason of Book VIII, to the extent that it may reasonably be considered that the amount payable relates to the acquisition or lease of qualified property, to the lease of an eligible facility, or to the payment of qualified wages by a corporation up to the amount incurred in respect of that property, that facility or those wages by that corporation;

“designated site” means

(a)  a biotechnology development centre;

(b)  a new economy centre;

(c)  the Centre national des nouvelles technologies de Québec; or

(d)  the Cité du multimédia;

“eligibility period” of a corporation means, subject to subparagraphs c and d of the first paragraph of section 1029.8.36.0.18.2

(a)  for the purpose of determining the amount of qualified wages paid by the corporation in a taxation year, the period that begins on the particular day that is the later of the day of coming into force of the certificate referred to in paragraph a of section 771.12 that was issued in respect of the corporation and the corporation’s reference date, if the certificate was issued after 10 March 2003, or the latest of the day on which the corporation’s first taxation year begins, the day of coming into force of that certificate and the corporation’s reference date, in any other case, and that ends on the earlier of the day that precedes the day on which the corporation ceases to be an exempt corporation and

i.  31 December 2010, if any of the following days is before 1 January 2001:

(1)  the day of coming into force of the certificate, where it is issued after 10 March 2003, or

(2)  the later of the day on which the corporation’s first taxation year begins and the day of coming into force of the certificate, in any other case,

ii.  the last day of the ten-year period that begins on the particular day, if any of the following days is after 31 December 2000 and before 1 January 2004:

(1)  the day of coming into force of the certificate, where it is issued after 10 March 2003, or

(2)  the later of the day on which the corporation’s first taxation year begins and the day of coming into force of the certificate, in any other case, or

iii.  31 December 2013, if the day of coming into force of the certificate is after 31 December 2003;

(b)  for the purpose of determining the amount that the corporation is deemed to have paid to the Minister for a taxation year under section 1029.8.36.0.25 in relation to rental expenses paid in respect of qualified property, or under section 1029.8.36.0.25.1, the five-year period that begins,

i.  where the corporation is an exempt corporation or a specified corporation in respect of a biotechnology development centre that was an exempt corporation for a preceding taxation year, on the later of the day of coming into force of the certificate referred to in paragraph a of section 771.12 that was issued in respect of the corporation and the corporation’s reference date, if that certificate was issued after 10 March 2003, or on the latest of the day on which the corporation’s first taxation year begins, the day of coming into force of that certificate and the corporation’s reference date, in any other case, or

ii.  where the corporation is a specified corporation in respect of a biotechnology development centre other than a corporation referred to in subparagraph i, on the date indicated for that purpose on the certificate that was issued to the corporation for the year in respect of a specified activity, in relation to that centre; or

(c)  for the purpose of determining the amount that the corporation is deemed to have paid to the Minister for a taxation year under section 1029.8.36.0.25 in relation to acquisition costs incurred in respect of qualified property, the three-year period that begins,

i.  where the corporation is an exempt corporation or a specified corporation in respect of a biotechnology development centre that was an exempt corporation for a preceding taxation year, on the later of the day of coming into force of the certificate referred to in paragraph a of section 771.12 that was issued in respect of the corporation and the corporation’s reference date, if that certificate was issued after 10 March 2003, or on the latest of the day on which the corporation’s first taxation year begins, the day of coming into force of that certificate and the corporation’s reference date, in any other case, or

ii.  where the corporation is a specified corporation in respect of a biotechnology development centre other than a corporation referred to in subparagraph i, on the date indicated for that purpose on the certificate that was issued to the corporation for the year in respect of a specified activity, in relation to that centre;

“eligible employee” of a corporation for part or all of a taxation year means an individual in respect of whom a certificate is issued to the corporation for the year by Investissement Québec for the purposes of this division, certifying that the individual is an eligible employee of the corporation for part or all of the year;

“eligible facility” of a person in relation to a biotechnology development centre means a facility in respect of which a certificate was issued to the person by Investissement Québec for the purposes of this division;

“eligible rental expenses” incurred by a corporation in respect of an eligible facility means the aggregate of all expenses incurred by the corporation for the lease of the facility, including expenses attributable to property that is necessary for the use of the facility and that is consumed in connection with that use and to a person’s wages or compensation for services rendered in connection with that use, to the extent that, where the corporation is a specified corporation in respect of a biotechnology development centre, the facility is leased for the carrying out of a specified activity of the corporation in relation to that centre;

“exempt corporation” for a taxation year means a corporation referred to in paragraph a of section 771.12 that, as the case may be,

(a)  for the purposes of the definition of “specified corporation” and section 1029.8.36.0.19, would be an exempt corporation for the year within the meaning of sections 771.12 and 771.13 if section 771.12 were read without reference to paragraph d thereof; and

(b)  in any other case, is an exempt corporation for the year within the meaning of sections 771.12 and 771.13;

“information technology development centre” has the meaning assigned by section 771.1;

“new economy centre” has the meaning assigned by section 771.1;

“qualified centre” means

(a)  a biotechnology development centre;

(b)  an information technology development centre; or

(c)  a new economy centre;

“qualified property” of a corporation means depreciable property that the corporation acquires or property that is leased by the corporation, and

(a)  that, before being acquired or leased by the corporation, has not been used for any purpose whatsoever nor acquired for use for a purpose other than lease to an exempt corporation or, where it was acquired after 30 March 2004, to a specified corporation in respect of a biotechnology development centre;

(b)  where the property is leased by the corporation, the lease began during one of the first three years of the eligibility period of the corporation that applies for the purpose of establishing the amount that the corporation is deemed to have paid to the Minister for a taxation year under section 1029.8.36.0.25 in relation to rental expenses paid in respect of the qualified property;

(c)  that the corporation begins to use within a reasonable time after its acquisition or lease;

(d)  that the corporation uses principally in a qualified centre and, exclusively or almost exclusively, to earn income from,

i.  where the corporation is an exempt corporation, a business it carries on in that centre, or

ii.  where the corporation is a specified corporation and the qualified centre is a biotechnology development centre, the part of a business it carries on in that centre that may reasonably be attributed to the carrying out of a specified activity; and

(e)  in respect of which Investissement Québec has issued a certificate for the purposes of this division or Division II.6.0.2, as it read before being repealed;

“qualified wages” paid in a taxation year by a corporation to an eligible employee means the lesser of

(a)  the amount established for the year pursuant to the first paragraph of section 1029.8.36.0.18 in relation to the eligible employee; and

(b)  the aggregate of all amounts each of which is the amount by which the wages paid by the corporation to the employee, while the employee qualified as an eligible employee of the corporation, for a pay period ending at a time in the taxation year that is within the corporation’s eligibility period and that may reasonably be considered to be paid by the corporation in the course of carrying on a business in a qualified centre, exceeds the aggregate of

i.  the amount of any contract payment, government assistance and non-government assistance, attributable to the wages, that the corporation has received, is entitled to receive or may reasonably expect to receive on or before the corporation’s filing-due date for that year, and

ii.  the aggregate of all amounts each of which is the amount of a benefit or advantage in respect of the wages, other than wages that may reasonably be attributed to work done by the eligible employee in the course of the eligible employee’s employment with the corporation for the year, that a person or partnership has obtained, is entitled to obtain or may reasonably expect to obtain after 21 April 2005 and on or before the corporation’s filing-due date for that taxation year, whether in the form of a reimbursement, compensation or guarantee, in the form of proceeds of disposition of a property which exceed the fair market value of the property, or in any other form or manner;

“reference date” of a corporation means

(a)  if the corporation carries on or may carry on its business in an information technology development centre, 26 March 1997;

(b)  if the corporation carries on or may carry on its business in the Cité du multimédia, 16 June 1998;

(c)  if the corporation carries on or may carry on its business in a new economy centre or the Centre national des nouvelles technologies de Québec, 10 March 1999; and

(d)  if the corporation carries on or may carry on its business in a biotechnology development centre, 30 March 2001;

“rental expenses” paid by a corporation in respect of qualified property means the aggregate of the expenses paid by the corporation for the lease of the property to the extent that they are deductible in computing the income of the corporation under this Part;

“specified activity” of a corporation in relation to a designated site for a taxation year means an activity that the corporation carries out in the site in the year and in respect of which Investissement Québec issues a certificate to the corporation for the year and for the purposes of this division, certifying that the activity is,

(a)  if the designated site is a biotechnology development centre, an activity related to biotechnologies;

(b)  if the designated site is a new economy centre, an activity related to the new economy; and

(c)  if the designated site is the Centre national des nouvelles technologies de Québec or the Cité du multimédia, an activity related to information technologies or multimedia;

“specified corporation” in respect of a designated site for a taxation year means, subject to subparagraph b of the first paragraph of section 1029.8.36.0.18.2, a corporation that

(a)  in the year, has an establishment in Québec and carries on a qualified business in Québec;

(b)  does not include

i.  a corporation that is exempt from tax for the year under Book VIII,

ii.  a corporation that would be exempt from tax for the year under section 985, but for section 192,

iii.  an exempt corporation for the year,

iv.  a corporation control of which is acquired by a person or group of persons at the beginning of the year or of a preceding taxation year, but between 11 June 2003 and 31 March 2004, where the corporation carries on or may carry on its business in a biotechnology development centre, or after 11 June 2003, in any other case, unless acquiring control of the corporation

(1)  occurs before 1 July 2004 and Investissement Québec certifies that the acquisition of control results from a transaction that was sufficiently advanced on 11 June 2003 and was binding on the parties on that date,

(2)  is by a specified corporation, by a person or group of persons that controls a specified corporation, or by a group of persons each member of which is a specified corporation or a person who, alone or together with other members of the group, controls such a corporation,

(3)  derives from the exercise after 11 June 2003 of one or more rights described in paragraph b of section 20 that were acquired before 12 June 2003, or

(4)  derives from the performance after 11 June 2003 of one or more obligations described in the third paragraph of section 21.3.5 that were contracted before 12 June 2003; or

v.  a corporation that has made an election under the fourth or fifth paragraph of section 1029.8.36.0.3.80 for the year or a preceding taxation year; and

(c)  obtains for the year a certificate issued to the corporation by Investissement Québec for the purposes of this division, certifying that the corporation carries out or may carry out in the year in the designated site a specified activity in relation to that site;

“specified employee” of a corporation for part or all of a taxation year means an individual in respect of whom a certificate is issued to the corporation for the year by Investissement Québec for the purposes of this division, certifying that the individual is a specified employee of the corporation for part or all of the year;

“specified period” of a corporation for a taxation year in respect of a designated site means the portion of the year in the period that begins on the reference date of the corporation in respect of the site and that ends, as the case may be,

(a)  where the corporation is, throughout the year, a specified corporation in respect of the designated site, on

i.  31 December 2010, if the effective date of the certificate referred to in paragraph c of the definition of “specified corporation” that was issued to the corporation for its first taxation year in which the corporation carried on or could carry on its business in any designated site is before 1 January 2001, or the last day of the 10-year period that begins on that effective date if that date is before 1 January 2004 but after 31 December 2000, or

ii.  31 December 2013, in any other case; and

(b)  where the corporation ceases in the year to be a specified corporation in respect of the designated site, the earlier of the day preceding the day on which the corporation so ceases and the date that would be determined pursuant to paragraph a if that paragraph applied to the corporation for that year;

“specified wages” incurred by a corporation in a taxation year in respect of a specified employee of a designated site means the lesser of

(a)  the proportion of the amount established for the year pursuant to the second paragraph of section 1029.8.36.0.18 in relation to the specified employee that the working time spent by that employee on a specified activity of the corporation in relation to the designated site in the year is of the aggregate of the employee’s working time for the year as a specified employee of the corporation; and

(b)  the amount by which the amount of the wages incurred by the corporation in respect of the employee in the specified period of the corporation for the year in respect of the designated site, while the employee qualified as a specified employee of the corporation, to the extent that that amount is paid and that it may reasonably be considered to relate to the carrying out in the year of a specified activity in relation to the designated site having regard to the time spent thereon by the employee, exceeds the aggregate of

i.  the aggregate of all amounts each of which is an amount of government assistance or non-government assistance, attributable to such wages, that the corporation has received, is entitled to receive or may reasonably expect to receive, on or before the corporation’s filing-due date for the taxation year, and

ii.  the aggregate of all amounts each of which is the amount of a benefit or advantage in respect of such wages, other than a benefit or advantage that may reasonably be attributed to work carried out by the specified employee in connection with the carrying out of the specified activity of the corporation for the year, that a person or partnership has obtained, is entitled to obtain or may reasonably expect to obtain, on or before the corporation’s filing-due date for that taxation year, whether in the form of a reimbursement, compensation, guarantee, in the form of proceeds of disposition of property which exceed the fair market value of the property, or in any other form or manner;

“wages” means the income computed under Chapters I and II of Title II of Book III.

For the purposes of the definition of “specified activity” in the first paragraph, a corporation is deemed to carry out a specified activity in a designated site in the part of a taxation year for which it is authorized by Investissement Québec to carry on its business outside that site, if the activity is carried out in Québec in that part of the year.

For the purposes of paragraph a of the definition of “qualified property” in the first paragraph, where a corporation acquires depreciable property from a person, the property acquired by the corporation is deemed not to have been used for any purpose whatever before its acquisition by the corporation nor to have been acquired, before that acquisition, for use for a purpose other than lease to an exempt corporation, if the corporation continues the carrying out of a project of the person and

(a)  the person did not acquire the property before the reference date of the corporation;

(b)  the property has not been used, or acquired for use or lease, for any purpose whatever before being acquired by the person; and

(c)  the person used the property only in connection with the project the carrying out of which is continued by the corporation.

For the purposes of paragraph d of the definition of “qualified property” in the first paragraph, where, at any time that is not before the corporation’s reference date, a corporation has acquired or leased property that is used by the corporation in the course of carrying on a business and that would be qualified property of the corporation if the definition of “qualified property” were read without reference to paragraph d thereof, the corporation is deemed to use the property principally in a qualified centre and, exclusively or almost exclusively, to earn income from a business it carries on in that centre, throughout the period that begins at that time and that ends on the day on which Investissement Québec issues a certificate referred to in paragraph a of section 771.12 to the corporation.

Despite paragraphs b and c of the definition of “eligibility period” in the first paragraph, the eligibility period of a corporation that is a specified corporation in respect of a biotechnology development centre for a taxation year does not include the part of any taxation year that begins at the time the corporation ceases to be a specified corporation in respect of that centre for that year.

Despite the definition of “eligibility period” in the first paragraph, the eligibility period of a corporation that is an exempt corporation does not include the part of a taxation year that is described in the fourth paragraph of section 771.1.

For the purpose of applying the definition of “specified period” in the first paragraph to a corporation that is a member of an associated group in its first taxation year in which the corporation carries on or may carry on its business in a particular designated site, the effective date of the certificate that was issued to the corporation for its first taxation year in which the corporation carried on or could carry on its business in any designated site to which subparagraph i of paragraph a of that definition refers is deemed to be the earliest of all the dates each of which is the effective date of the certificate that was issued to a member of that associated group for the member’s first taxation year in which the member carried on or could carry on business in such a site.

If any corporation that has been an exempt corporation for a taxation year subsequently becomes a specified corporation, the date of coming into force of the certificate, referred to in paragraph a of section 771.12, that was issued in respect of that corporation is deemed, for the purposes of the definition of “specified period” in the first paragraph and of the seventh paragraph, to be the date of coming into force of the certificate referred to in paragraph c of the definition of “specified corporation” in the first paragraph that was issued to that corporation for its first taxation year in which it carried on or could carry on its business in any designated site.

For the purposes of the definition of “specified wages” in the first paragraph, a specified employee who spends 90% or more of working time on a specified activity is deemed to spend all working time thereon.

Subparagraph iv of paragraph b of the definition of “specified corporation” in the first paragraph does not apply for a taxation year to a corporation that carries on or may carry on its business in a biotechnology development centre if, after 30 March 2004, Investissement Québec has issued to the corporation a certificate, referred to in paragraph c of that definition, for the year.

2000, c. 39, s. 176; 2001, c. 7, s. 169; 2001, c. 51, s. 147; 2001, c. 53, s. 260; 2001, c. 69, s. 12; 2002, c. 9, s. 76; 2003, c. 9, s. 221; 2004, c. 21, s. 338; 2005, c. 23, s. 167; 2005, c. 38, s. 255; 2006, c. 13, s. 130; 2006, c. 36, s. 139; 2007, c. 12, s. 175; 2009, c. 15, s. 242.

2007-11-07

1029.8.36.0.17. In this division,

“acquisition costs” incurred by a corporation in respect of qualified property means the aggregate of the costs incurred by the corporation to acquire the property and that are included in the capital cost of the property, other than the costs so included under section 180 or 182;

“associated group” in a taxation year means the group formed by all of the corporations that are associated with each other in the year;

“biotechnology development centre” has the meaning assigned by the first paragraph of section 771.1;

“Centre national des nouvelles technologies de Québec” means all the premises designated as such by Investissement Québec;

“Cité du multimédia” means all the buildings designated as such by the Minister of Finance;

“contract payment” means an amount payable under a contract by the Government of Canada or of a province, by a municipality or other public authority in Canada or by a person exempt from tax under this Part by reason of Book VIII, to the extent that it may reasonably be considered that the amount payable relates to the acquisition or lease of qualified property, to the lease of an eligible facility, or to the payment of qualified wages by a corporation up to the amount incurred in respect of that property, that facility or those wages by that corporation;

“designated site” means

(a)  a biotechnology development centre;

(b)  a new economy centre;

(c)  the Centre national des nouvelles technologies de Québec; or

(d)  the Cité du multimédia;

“eligibility period” of a corporation means, subject to subparagraphs c and d of the first paragraph of section 1029.8.36.0.18.2

(a)  for the purpose of determining the amount of qualified wages paid by the corporation in a taxation year, the period that begins on the particular day that is the later of the day of coming into force of the certificate referred to in paragraph a of section 771.12 that was issued in respect of the corporation and the corporation’s reference date, if the certificate was issued after 10 March 2003, or the latest of the day on which the corporation’s first taxation year begins, the day of coming into force of that certificate and the corporation’s reference date, in any other case, and that ends on the earlier of the day that precedes the day on which the corporation ceases to be an exempt corporation and

i.  31 December 2010, if any of the following days is before 1 January 2001:

(1)  the day of coming into force of the certificate, where it is issued after 10 March 2003, or

(2)  the later of the day on which the corporation’s first taxation year begins and the day of coming into force of the certificate, in any other case,

ii.  the last day of the ten-year period that begins on the particular day, if any of the following days is after 31 December 2000 and before 1 January 2004:

(1)  the day of coming into force of the certificate, where it is issued after 10 March 2003, or

(2)  the later of the day on which the corporation’s first taxation year begins and the day of coming into force of the certificate, in any other case, or

iii.  31 December 2013, if the day of coming into force of the certificate is after 31 December 2003;

(b)  for the purpose of determining the amount that the corporation is deemed to have paid to the Minister for a taxation year under section 1029.8.36.0.25 in relation to rental expenses paid in respect of qualified property, or under section 1029.8.36.0.25.1, the five-year period that begins,

i.  where the corporation is an exempt corporation or a specified corporation in respect of a biotechnology development centre that was an exempt corporation for a preceding taxation year, on the later of the day of coming into force of the certificate referred to in paragraph a of section 771.12 that was issued in respect of the corporation and the corporation’s reference date, if that certificate was issued after 10 March 2003, or on the latest of the day on which the corporation’s first taxation year begins, the day of coming into force of that certificate and the corporation’s reference date, in any other case, or

ii.  where the corporation is a specified corporation in respect of a biotechnology development centre other than a corporation referred to in subparagraph i, on the date indicated for that purpose on the certificate that was issued to the corporation for the year in respect of a specified activity, in relation to that centre; or

(c)  for the purpose of determining the amount that the corporation is deemed to have paid to the Minister for a taxation year under section 1029.8.36.0.25 in relation to acquisition costs incurred in respect of qualified property, the three-year period that begins,

i.  where the corporation is an exempt corporation or a specified corporation in respect of a biotechnology development centre that was an exempt corporation for a preceding taxation year, on the later of the day of coming into force of the certificate referred to in paragraph a of section 771.12 that was issued in respect of the corporation and the corporation’s reference date, if that certificate was issued after 10 March 2003, or on the latest of the day on which the corporation’s first taxation year begins, the day of coming into force of that certificate and the corporation’s reference date, in any other case, or

ii.  where the corporation is a specified corporation in respect of a biotechnology development centre other than a corporation referred to in subparagraph i, on the date indicated for that purpose on the certificate that was issued to the corporation for the year in respect of a specified activity, in relation to that centre;

“eligible employee” of a corporation for part or all of a taxation year means an individual in respect of whom a certificate is issued to the corporation for the year by Investissement Québec for the purposes of this division, certifying that the individual is an eligible employee of the corporation for part or all of the year;

“eligible facility” of a person in relation to a biotechnology development centre means a facility in respect of which a certificate was issued to the person by Investissement Québec for the purposes of this division, certifying that, as the case may be,

(a)  the facility is a prescribed specialized facility that is used in respect of biotechnologies; or

(b)  it is

i.  a facility that is set up by the person in the biotechnology development centre outside premises where an exempt corporation or a specified corporation carries on its business, and

ii.  a facility that comprises, exclusively or almost exclusively, property each of which

(1)  constitutes a specialized property that is used in respect of biotechnologies,

(2)  before being set up in the biotechnology development centre, was not used for any purpose whatever or acquired for use for a purpose other than lease, and

(3)  is to be leased, on an ad hoc basis, to more than one person;

“eligible rental expenses” incurred by a corporation in respect of an eligible facility means the aggregate of all expenses incurred by the corporation for the lease of the facility, including expenses attributable to property that is necessary for the use of the facility and that is consumed in connection with that use and to a person’s wages or compensation for services rendered in connection with that use, to the extent that, where the corporation is a specified corporation in respect of a biotechnology development centre, the facility is leased for the carrying out of a specified activity of the corporation in relation to that centre;

“exempt corporation” for a taxation year means a corporation referred to in paragraph a of section 771.12 that, as the case may be,

(a)  for the purposes of the definition of “specified corporation” and section 1029.8.36.0.19, would be an exempt corporation for the year within the meaning of sections 771.12 and 771.13 if section 771.12 were read without reference to paragraph d thereof; and

(b)  in any other case, is an exempt corporation for the year within the meaning of sections 771.12 and 771.13;

“information technology development centre” has the meaning assigned by section 771.1;

“new economy centre” has the meaning assigned by section 771.1;

“qualified centre” means

(a)  a biotechnology development centre;

(b)  an information technology development centre; or

(c)  a new economy centre;

“qualified property” of a corporation means depreciable property that the corporation acquires or property that is leased by the corporation, and

(a)  that, before being acquired or leased by the corporation, has not been used for any purpose whatsoever nor acquired for use for a purpose other than lease to an exempt corporation or, where it was acquired after 30 March 2004, to a specified corporation in respect of a biotechnology development centre;

(b)  where the property is leased by the corporation, the lease began during one of the first three years of the eligibility period of the corporation that applies for the purpose of establishing the amount that the corporation is deemed to have paid to the Minister for a taxation year under section 1029.8.36.0.25 in relation to rental expenses paid in respect of the qualified property;

(c)  that the corporation begins to use within a reasonable time after its acquisition or lease;

(d)  that the corporation uses principally in a qualified centre and, exclusively or almost exclusively, to earn income from,

i.  where the corporation is an exempt corporation, a business it carries on in that centre, or

ii.  where the corporation is a specified corporation and the qualified centre is a biotechnology development centre, the part of a business it carries on in that centre that may reasonably be attributed to the carrying out of a specified activity; and

(e)  in respect of which Investissement Québec has issued a certificate for the purposes of this division or Division II.6.0.2, as it read before being repealed;

“qualified wages” paid in a taxation year by a corporation to an eligible employee means the lesser of

(a)  the amount established for the year pursuant to the first paragraph of section 1029.8.36.0.18 in relation to the eligible employee; and

(b)  the aggregate of all amounts each of which is the amount by which the wages paid by the corporation to the employee, while the employee qualified as an eligible employee of the corporation, for a pay period ending at a time in the taxation year that is within the corporation’s eligibility period and that may reasonably be considered to be paid by the corporation in the course of carrying on a business in a qualified centre, exceeds the aggregate of

i.  the amount of any contract payment, government assistance and non-government assistance, attributable to the wages, that the corporation has received, is entitled to receive or may reasonably expect to receive on or before the corporation’s filing-due date for that year, and

ii.  the aggregate of all amounts each of which is the amount of a benefit or advantage in respect of the wages, other than wages that may reasonably be attributed to work done by the eligible employee in the course of the eligible employee’s employment with the corporation for the year, that a person or partnership has obtained, is entitled to obtain or may reasonably expect to obtain after 21 April 2005 and on or before the corporation’s filing-due date for that taxation year, whether in the form of a reimbursement, compensation or guarantee, in the form of proceeds of disposition of a property which exceed the fair market value of the property, or in any other form or manner;

“reference date” of a corporation means

(a)  if the corporation carries on or may carry on its business in an information technology development centre, 26 March 1997;

(b)  if the corporation carries on or may carry on its business in the Cité du multimédia, 16 June 1998;

(c)  if the corporation carries on or may carry on its business in a new economy centre or the Centre national des nouvelles technologies de Québec, 10 March 1999; and

(d)  if the corporation carries on or may carry on its business in a biotechnology development centre, 30 March 2001;

“rental expenses” paid by a corporation in respect of qualified property means the aggregate of the expenses paid by the corporation for the lease of the property to the extent that they are deductible in computing the income of the corporation under this Part;

“specified activity” of a corporation in relation to a designated site for a taxation year means an activity that the corporation carries out in the site in the year and in respect of which Investissement Québec issues a certificate to the corporation for the year and for the purposes of this division, certifying that the activity is,

(a)  if the designated site is a biotechnology development centre, an activity related to biotechnologies;

(b)  if the designated site is a new economy centre, an activity related to the new economy; and

(c)  if the designated site is the Centre national des nouvelles technologies de Québec or the Cité du multimédia, an activity related to information technologies or multimedia;

“specified corporation” in respect of a designated site for a taxation year means, subject to subparagraph b of the first paragraph of section 1029.8.36.0.18.2, a corporation that

(a)  in the year, has an establishment in Québec and carries on a qualified business in Québec;

(b)  does not include

i.  a corporation that is exempt from tax for the year under Book VIII,

ii.  a corporation that would be exempt from tax for the year under section 985, but for section 192,

iii.  an exempt corporation for the year, or

iv.  a corporation control of which is acquired by a person or group of persons at the beginning of the year or of a preceding taxation year, but between 11 June 2003 and 31 March 2004, where the corporation carries on or may carry on its business in a biotechnology development centre, or after 11 June 2003, in any other case, unless acquiring control of the corporation

(1)  occurs before 1 July 2004 and Investissement Québec certifies that the acquisition of control results from a transaction that was sufficiently advanced on 11 June 2003 and was binding on the parties on that date,

(2)  is by a specified corporation, by a person or group of persons that controls a specified corporation, or by a group of persons each member of which is a specified corporation or a person who, alone or together with other members of the group, controls such a corporation,

(3)  derives from the exercise after 11 June 2003 of one or more rights described in paragraph b of section 20 that were acquired before 12 June 2003, or

(4)  derives from the performance after 11 June 2003 of one or more obligations described in the third paragraph of section 21.3.5 that were contracted before 12 June 2003; and

(c)  obtains for the year a certificate issued to the corporation by Investissement Québec for the purposes of this division, certifying that the corporation carries out or may carry out in the year in the designated site a specified activity in relation to that site;

“specified employee” of a corporation for part or all of a taxation year means an individual in respect of whom a certificate is issued to the corporation for the year by Investissement Québec for the purposes of this division, certifying that the individual is a specified employee of the corporation for part or all of the year;

“specified period” of a corporation for a taxation year in respect of a designated site means the portion of the year in the period that begins on the reference date of the corporation in respect of the site and that ends, as the case may be,

(a)  where the corporation is, throughout the year, a specified corporation in respect of the designated site, on

i.  31 December 2010, if the effective date of the certificate referred to in paragraph c of the definition of “specified corporation” that was issued to the corporation for its first taxation year in which the corporation carried on or could carry on its business in any designated site is before 1 January 2001, or the last day of the 10-year period that begins on that effective date if that date is before 1 January 2004 but after 31 December 2000, or

ii.  31 December 2013, in any other case; and

(b)  where the corporation ceases in the year to be a specified corporation in respect of the designated site, the earlier of the day preceding the day on which the corporation so ceases and the date that would be determined pursuant to paragraph a if that paragraph applied to the corporation for that year;

“specified wages” incurred by a corporation in a taxation year in respect of a specified employee of a designated site means the lesser of

(a)  the proportion of the amount established for the year pursuant to the second paragraph of section 1029.8.36.0.18 in relation to the specified employee that the working time spent by that employee on a specified activity of the corporation in relation to the designated site in the year is of the aggregate of the employee’s working time for the year as a specified employee of the corporation; and

(b)  the amount by which the amount of the wages incurred by the corporation in respect of the employee in the specified period of the corporation for the year in respect of the designated site, while the employee qualified as a specified employee of the corporation, to the extent that that amount is paid and that it may reasonably be considered to relate to the carrying out in the year of a specified activity in relation to the designated site having regard to the time spent thereon by the employee, exceeds the aggregate of

i.  the aggregate of all amounts each of which is an amount of government assistance or non-government assistance, attributable to such wages, that the corporation has received, is entitled to receive or may reasonably expect to receive, on or before the corporation’s filing-due date for the taxation year, and

ii.  the aggregate of all amounts each of which is the amount of a benefit or advantage in respect of such wages, other than a benefit or advantage that may reasonably be attributed to work carried out by the specified employee in connection with the carrying out of the specified activity of the corporation for the year, that a person or partnership has obtained, is entitled to obtain or may reasonably expect to obtain, on or before the corporation’s filing-due date for that taxation year, whether in the form of a reimbursement, compensation, guarantee, in the form of proceeds of disposition of property which exceed the fair market value of the property, or in any other form or manner;

“wages” means the income computed under Chapters I and II of Title II of Book III.

For the purposes of the definition of “specified activity” in the first paragraph, a corporation is deemed to carry out a specified activity in a designated site in the part of a taxation year for which it is authorized by Investissement Québec to carry on its business outside that site, if the activity is carried out in Québec in that part of the year.

For the purposes of paragraph a of the definition of “qualified property” in the first paragraph, where a corporation acquires depreciable property from a person, the property acquired by the corporation is deemed not to have been used for any purpose whatever before its acquisition by the corporation nor to have been acquired, before that acquisition, for use for a purpose other than lease to an exempt corporation, if the corporation continues the carrying out of a project of the person and

(a)  the person did not acquire the property before the reference date of the corporation;

(b)  the property has not been used, or acquired for use or lease, for any purpose whatever before being acquired by the person; and

(c)  the person used the property only in connection with the project the carrying out of which is continued by the corporation.

For the purposes of paragraph d of the definition of “qualified property” in the first paragraph, where, at any time that is not before the corporation’s reference date, a corporation has acquired or leased property that is used by the corporation in the course of carrying on a business and that would be qualified property of the corporation if the definition of “qualified property” were read without reference to paragraph d thereof, the corporation is deemed to use the property principally in a qualified centre and, exclusively or almost exclusively, to earn income from a business it carries on in that centre, throughout the period that begins at that time and that ends on the day on which Investissement Québec issues a certificate referred to in paragraph a of section 771.12 to the corporation.

Despite paragraphs b and c of the definition of “eligibility period” in the first paragraph, the eligibility period of a corporation that is a specified corporation in respect of a biotechnology development centre for a taxation year does not include the part of any taxation year that begins at the time the corporation ceases to be a specified corporation in respect of that centre for that year.

Despite the definition of “eligibility period” in the first paragraph, the eligibility period of a corporation that is an exempt corporation does not include the part of a taxation year that is described in the fourth paragraph of section 771.1.

For the purpose of applying the definition of “specified period” in the first paragraph to a corporation that is a member of an associated group in its first taxation year in which the corporation carries on or may carry on its business in a particular designated site, the effective date of the certificate that was issued to the corporation for its first taxation year in which the corporation carried on or could carry on its business in any designated site to which subparagraph i of paragraph a of that definition refers is deemed to be the earliest of all the dates each of which is the effective date of the certificate that was issued to a member of that associated group for the member’s first taxation year in which the member carried on or could carry on business in such a site.

If any corporation that has been an exempt corporation for a taxation year subsequently becomes a specified corporation, the date of coming into force of the certificate, referred to in paragraph a of section 771.12, that was issued in respect of that corporation is deemed, for the purposes of the definition of “specified period” in the first paragraph and of the seventh paragraph, to be the date of coming into force of the certificate referred to in paragraph c of the definition of “specified corporation” in the first paragraph that was issued to that corporation for its first taxation year in which it carried on or could carry on its business in any designated site.

For the purposes of the definition of “specified wages” in the first paragraph, a specified employee who spends 90% or more of working time on a specified activity is deemed to spend all working time thereon.

Subparagraph iv of paragraph b of the definition of “specified corporation” in the first paragraph does not apply for a taxation year to a corporation that carries on or may carry on its business in a biotechnology development centre if, after 30 March 2004, Investissement Québec has issued to the corporation a certificate, referred to in paragraph c of that definition, for the year.

2000, c. 39, s. 176; 2001, c. 7, s. 169; 2001, c. 51, s. 147; 2001, c. 53, s. 260; 2001, c. 69, s. 12; 2002, c. 9, s. 76; 2003, c. 9, s. 221; 2004, c. 21, s. 338; 2005, c. 23, s. 167; 2005, c. 38, s. 255; 2006, c. 13, s. 130; 2006, c. 36, s. 139; 2007, c. 12, s. 175.

2006-12-06

1029.8.36.0.17. In this division,

“acquisition costs” incurred by a corporation in respect of qualified property means the aggregate of the costs incurred by the corporation to acquire the property and that are included in the capital cost of the property;

“associated group” in a taxation year means the group formed by all of the corporations that are associated with each other in the year;

“biotechnology development centre” has the meaning assigned by the first paragraph of section 771.1;

“Centre national des nouvelles technologies de Québec” means all the premises designated as such by Investissement Québec;

“Cité du multimédia” means all the buildings designated as such by the Minister of Finance;

“contract payment” means an amount payable under a contract by the Government of Canada or of a province, by a municipality or other public authority in Canada or by a person exempt from tax under this Part by reason of Book VIII, to the extent that it may reasonably be considered that the amount payable relates to the acquisition or lease of qualified property, to the lease of an eligible facility, or to the payment of qualified wages by a corporation up to the amount incurred in respect of that property, that facility or those wages by that corporation;

“designated site” means

(a)  a biotechnology development centre;

(b)  a new economy centre;

(c)  the Centre national des nouvelles technologies de Québec; or

(d)  the Cité du multimédia;

“eligibility period” of a corporation means

(a)  for the purpose of determining the amount of qualified wages paid by the corporation in a taxation year, the period that begins on the particular day that is the later of the day of coming into force of the certificate referred to in paragraph a of section 771.12 that was issued in respect of the corporation and the corporation’s reference date, if the certificate was issued after 10 March 2003, or the latest of the day on which the corporation’s first taxation year begins, the day of coming into force of that certificate and the corporation’s reference date, in any other case, and that ends on the earlier of the day that precedes the day on which the corporation ceases to be an exempt corporation and

i.  31 December 2010, if any of the following days is before 1 January 2001:

(1)  the day of coming into force of the certificate, where it is issued after 10 March 2003, or

(2)  the later of the day on which the corporation’s first taxation year begins and the day of coming into force of the certificate, in any other case,

ii.  the last day of the ten-year period that begins on the particular day, if any of the following days is after 31 December 2000 and before 1 January 2004:

(1)  the day of coming into force of the certificate, where it is issued after 10 March 2003, or

(2)  the later of the day on which the corporation’s first taxation year begins and the day of coming into force of the certificate, in any other case, or

iii.  31 December 2013, if the day of coming into force of the certificate is after 31 December 2003;

(b)  for the purpose of determining the amount that the corporation is deemed to have paid to the Minister for a taxation year under section 1029.8.36.0.25 in relation to rental expenses paid in respect of qualified property, or under section 1029.8.36.0.25.1, the five-year period that begins,

i.  where the corporation is an exempt corporation or a specified corporation in respect of a biotechnology development centre that was an exempt corporation in a preceding taxation year, on the later of the day of coming into force of the certificate referred to in paragraph a of section 771.12 that was issued in respect of the corporation and the corporation’s reference date, if that certificate was issued after 10 March 2003, or on the latest of the day on which the corporation’s first taxation year begins, the day of coming into force of that certificate and the corporation’s reference date, in any other case, or

ii.  where the corporation is a specified corporation in respect of a biotechnology development centre other than a corporation referred to in subparagraph i, on the date indicated for that purpose on the certificate that was issued to the corporation for the year in respect of a specified activity, in relation to that centre; or

(c)  for the purpose of determining the amount that the corporation is deemed to have paid to the Minister for a taxation year under section 1029.8.36.0.25 in relation to acquisition costs incurred in respect of qualified property, the three-year period that begins,

i.  where the corporation is an exempt corporation or a specified corporation in respect of a biotechnology development centre that was an exempt corporation in a preceding taxation year, on the later of the day of coming into force of the certificate referred to in paragraph a of section 771.12 that was issued in respect of the corporation and the corporation’s reference date, if that certificate was issued after 10 March 2003, or on the latest of the day on which the corporation’s first taxation year begins, the day of coming into force of that certificate and the corporation’s reference date, in any other case, or

ii.  where the corporation is a specified corporation in respect of a biotechnology development centre other than a corporation referred to in subparagraph i, on the date indicated for that purpose on the certificate that was issued to the corporation for the year in respect of a specified activity, in relation to that centre;

“eligible employee” of a corporation for part or all of a taxation year means an individual in respect of whom a certificate is issued to the corporation for the year by Investissement Québec for the purposes of this division, certifying that the individual is an eligible employee of the corporation for part or all of the year;

“eligible facility” of a person in relation to a biotechnology development centre means a facility in respect of which a certificate was issued to the person by Investissement Québec for the purposes of this division, certifying that, as the case may be,

(a)  the facility is a prescribed specialized facility that is used in respect of biotechnologies; or

(b)  it is

i.  a facility that is set up by the person in the biotechnology development centre outside premises where an exempt corporation or a specified corporation carries on its business, and

ii.  a facility that comprises, exclusively or almost exclusively, property each of which

(1)  constitutes a specialized property that is used in respect of biotechnologies,

(2)  before being set up in the biotechnology development centre, was not used for any purpose whatever or acquired for use for a purpose other than lease, and

(3)  is to be leased, on an ad hoc basis, to more than one person;

“eligible rental expenses” incurred by a corporation in respect of an eligible facility means the aggregate of all expenses incurred by the corporation for the lease of the facility, including expenses attributable to property that is necessary for the use of the facility and that is consumed in connection with that use and to a person’s wages or compensation for services rendered in connection with that use, to the extent that, where the corporation is a specified corporation in respect of a biotechnology development centre, the facility is leased for the carrying out of a specified activity of the corporation in relation to that centre;

“exempt corporation” for a taxation year means a corporation referred to in paragraph a of section 771.12 that, as the case may be,

(a)  for the purposes of the definition of “specified corporation” and section 1029.8.36.0.19, would be an exempt corporation for the year within the meaning of sections 771.12 and 771.13 if section 771.12 were read without reference to paragraph d thereof; and

(b)  in any other case, is an exempt corporation for the year within the meaning of sections 771.12 and 771.13;

“information technology development centre” has the meaning assigned by section 771.1;

“new economy centre” has the meaning assigned by section 771.1;

“qualified centre” means

(a)  a biotechnology development centre;

(b)  an information technology development centre; or

(c)  a new economy centre;

“qualified property” of a corporation means depreciable property that the corporation acquires or property that is leased by the corporation, and

(a)  that, before being acquired or leased by the corporation, has not been used for any purpose whatsoever nor acquired for use for a purpose other than lease to an exempt corporation or, where it was acquired after 30 March 2004, to a specified corporation in respect of a biotechnology development centre;

(b)  where the property is leased by the corporation, the lease began during one of the first three years of the eligibility period of the corporation that applies for the purpose of establishing the amount that the corporation is deemed to have paid to the Minister for a taxation year under section 1029.8.36.0.25 in relation to rental expenses paid in respect of the qualified property;

(c)  that the corporation begins to use within a reasonable time after its acquisition or lease;

(d)  that the corporation uses principally in a qualified centre and, exclusively or almost exclusively, to earn income from,

i.  where the corporation is an exempt corporation, a business it carries on in that centre, or

ii.  where the corporation is a specified corporation and the qualified centre is a biotechnology development centre, the part of a business it carries on in that centre that may reasonably be attributed to the carrying out of a specified activity; and

(e)  in respect of which Investissement Québec has issued a certificate for the purposes of this division or Division II.6.0.2, as it read before being repealed;

“qualified wages” paid in a taxation year by a corporation to an eligible employee means the lesser of

(a)  the amount established for the year pursuant to the first paragraph of section 1029.8.36.0.18 in relation to the eligible employee; and

(b)  the aggregate of all amounts each of which is the amount by which the wages paid by the corporation to the employee, while the employee qualified as an eligible employee of the corporation, for a pay period ending at a time in the taxation year that is within the corporation’s eligibility period and that may reasonably be considered to be paid by the corporation in the course of carrying on a business in a qualified centre, exceeds the aggregate of

i.  the amount of any contract payment, government assistance and non-government assistance, attributable to the wages, that the corporation has received, is entitled to receive or may reasonably expect to receive on or before the corporation’s filing-due date for that year, and

ii.  the aggregate of all amounts each of which is the amount of a benefit or advantage in respect of the wages, other than wages that may reasonably be attributed to work done by the eligible employee in the course of the eligible employee’s employment with the corporation for the year, that a person or partnership has obtained, is entitled to obtain or may reasonably expect to obtain after 21 April 2005 and on or before the corporation’s filing-due date for that taxation year, whether in the form of a reimbursement, compensation or guarantee, in the form of proceeds of disposition of a property which exceed the fair market value of the property, or in any other form or manner;

“reference date” of a corporation means

(a)  if the corporation carries on or may carry on its business in an information technology development centre, 26 March 1997;

(b)  if the corporation carries on or may carry on its business in the Cité du multimédia, 16 June 1998;

(c)  if the corporation carries on or may carry on its business in a new economy centre or the Centre national des nouvelles technologies de Québec, 10 March 1999; and

(d)  if the corporation carries on or may carry on its business in a biotechnology development centre, 30 March 2001;

“rental expenses” paid by a corporation in respect of qualified property means the aggregate of the expenses paid by the corporation for the lease of the property to the extent that they are deductible in computing the income of the corporation under this Part;

“specified activity” of a corporation in relation to a designated site for a taxation year means an activity that the corporation carries out in the site in the year and in respect of which Investissement Québec issues a certificate to the corporation for the year and for the purposes of this division, certifying that the activity is,

(a)  if the designated site is a biotechnology development centre, an activity related to biotechnologies;

(b)  if the designated site is a new economy centre, an activity related to the new economy; and

(c)  if the designated site is the Centre national des nouvelles technologies de Québec or the Cité du multimédia, an activity related to information technologies or multimedia;

“specified corporation” in respect of a designated site for a taxation year means a corporation that

(a)  in the year, has an establishment in Québec and carries on a qualified business in Québec;

(b)  does not include

i.  a corporation that is exempt from tax for the year under Book VIII,

ii.  a corporation that would be exempt from tax for the year under section 985, but for section 192,

iii.  an exempt corporation for the year, or

iv.  a corporation control of which is acquired by a person or group of persons at the beginning of the year or of a preceding taxation year, but between 11 June 2003 and 31 March 2004, where the corporation carries on or may carry on its business in a biotechnology development centre, or after 11 June 2003, in any other case, unless acquiring control of the corporation

(1)  occurs before 1 July 2004 and Investissement Québec certifies that the acquisition of control results from a transaction that was sufficiently advanced on 11 June 2003 and was binding on the parties on that date,

(2)  is by a specified corporation, by a person or group of persons that controls a specified corporation, or by a group of persons each member of which is a specified corporation or a person who, alone or together with other members of the group, controls such a corporation,

(3)  derives from the exercise after 11 June 2003 of one or more rights described in paragraph b of section 20 that were acquired before 12 June 2003; and

(4)  derives from the performance after 11 June 2003 of one or more obligations described in the third paragraph of section 21.3.5 that were contracted before 12 June 2003; and

(c)  obtains for the year a certificate issued to the corporation by Investissement Québec for the purposes of this division, certifying that the corporation carries out or may carry out in the year in the designated site a specified activity in relation to that site;

“specified employee” of a corporation for part or all of a taxation year means an individual in respect of whom a certificate is issued to the corporation for the year by Investissement Québec for the purposes of this division, certifying that the individual is a specified employee of the corporation for part or all of the year;

“specified period” of a corporation for a taxation year in respect of a designated site means the portion of the year in the period that begins on the reference date of the corporation in respect of the site and that ends, as the case may be,

(a)  where the corporation is, throughout the year, a specified corporation in respect of the designated site, on

i.  31 December 2010, if the effective date of the certificate referred to in paragraph c of the definition of “specified corporation” that was issued to the corporation for its first taxation year in which the corporation carried on or could carry on its business in any designated site is before 1 January 2001, or the last day of the 10-year period that begins on that effective date if that date is before 1 January 2004 but after 31 December 2000, or

ii.  31 December 2013, in any other case; and

(b)  where the corporation ceases in the year to be a specified corporation in respect of the designated site, the earlier of the day preceding the day on which the corporation so ceases and the date that would be determined pursuant to paragraph a if that paragraph applied to the corporation for that year;

“specified wages” incurred by a corporation in a taxation year in respect of a specified employee of a designated site means the lesser of

(a)  the proportion of the amount established for the year pursuant to the second paragraph of section 1029.8.36.0.18 in relation to the specified employee that the working time spent by that employee on a specified activity of the corporation in relation to the designated site in the year is of the aggregate of the employee’s working time for the year as a specified employee of the corporation; and

(b)  the amount by which the amount of the wages incurred by the corporation in respect of the employee in the specified period of the corporation for the year in respect of the designated site, while the employee qualified as a specified employee of the corporation, to the extent that that amount is paid and that it may reasonably be considered to relate to the carrying out in the year of a specified activity in relation to the designated site having regard to the time spent thereon by the employee, exceeds the aggregate of

i.  the aggregate of all amounts each of which is an amount of government assistance or non-government assistance, attributable to such wages, that the corporation has received, is entitled to receive or may reasonably expect to receive, on or before the corporation’s filing-due date for the taxation year, and

ii.  the aggregate of all amounts each of which is the amount of a benefit or advantage in respect of such wages, other than a benefit or advantage that may reasonably be attributed to work carried out by the specified employee in connection with the carrying out of the specified activity of the corporation for the year, that a person or partnership has obtained, is entitled to obtain or may reasonably expect to obtain, on or before the corporation’s filing-due date for that taxation year, whether in the form of a reimbursement, compensation, guarantee, in the form of proceeds of disposition of property which exceed the fair market value of the property, or in any other form or manner;

“wages” means the income computed under Chapters I and II of Title II of Book III.

For the purposes of paragraph a of the definition of “qualified property” in the first paragraph, where a corporation acquires depreciable property from a person, the property acquired by the corporation is deemed not to have been used for any purpose whatever before its acquisition by the corporation nor to have been acquired, before that acquisition, for use for a purpose other than lease to an exempt corporation, if the corporation continues the carrying out of a project of the person and

(a)  the person did not acquire the property before the reference date of the corporation;

(b)  the property has not been used, or acquired for use or lease, for any purpose whatever before being acquired by the person; and

(c)  the person used the property only in connection with the project the carrying out of which is continued by the corporation.

For the purposes of paragraph d of the definition of “qualified property” in the first paragraph, where, at any time that is not before the corporation’s reference date, a corporation has acquired or leased property that is used by the corporation in the course of carrying on a business and that would be qualified property of the corporation if the definition of “qualified property” were read without reference to paragraph d thereof, the corporation is deemed to use the property principally in a qualified centre and, exclusively or almost exclusively, to earn income from a business it carries on in that centre, throughout the period that begins at that time and that ends on the day on which Investissement Québec issues a certificate referred to in paragraph a of section 771.12 to the corporation.

For the purposes of paragraphs b and c of the definition of “eligibility period” in the first paragraph, the eligibility period of a corporation that is a specified corporation in respect of a biotechnology development centre for a taxation year does not include the part of any taxation year that begins at the time the corporation ceases to be a specified corporation in respect of that centre for that year.

For the purpose of applying the definition of “specified period” in the first paragraph to a corporation that is a member of an associated group in its first taxation year in which the corporation carries on or may carry on its business in a particular designated site, the effective date of the certificate that was issued to the corporation for its first taxation year in which the corporation carried on or could carry on its business in any designated site to which subparagraph i of paragraph a of that definition refers is deemed to be the earliest of all the dates each of which is the effective date of the certificate that was issued to a member of that associated group for the member’s first taxation year in which the member carried on or could carry on business in such a site.

For the purposes of the definition of “specified wages” in the first paragraph, a specified employee who spends 90% or more of working time on a specified activity is deemed to spend all working time thereon.

Subparagraph iv of paragraph b of the definition of “specified corporation” in the first paragraph does not apply for a taxation year to a corporation that carries on or may carry on its business in a biotechnology development centre if, after 30 March 2004, Investissement Québec has issued to the corporation a certificate, referred to in paragraph c of that definition, for the year.

2000, c. 39, s. 176; 2001, c. 7, s. 169; 2001, c. 51, s. 147; 2001, c. 53, s. 260; 2001, c. 69, s. 12; 2002, c. 9, s. 76; 2003, c. 9, s. 221; 2004, c. 21, s. 338; 2005, c. 23, s. 167; 2005, c. 38, s. 255; 2006, c. 13, s. 130; 2006, c. 36, s. 139.

2006-06-13

1029.8.36.0.17. In this division,

"acquisition costs" incurred by a corporation in respect of qualified property means the aggregate of the costs incurred by the corporation to acquire the property and that are included in the capital cost of the property;

"associated group" in a taxation year means the group formed by all of the corporations that are associated with each other in the year;

"biotechnology development centre" has the meaning assigned by the first paragraph of section 771.1;

"Centre national des nouvelles technologies de Québec" means all the premises designated as such by Investissement Québec;

"Cité du multimédia" means all the buildings designated as such by the Minister of Finance;

"contract payment" means an amount payable under a contract by the Government of Canada or of a province, by a municipality or other public authority in Canada or by a person exempt from tax under this Part by reason of Book VIII, to the extent that it may reasonably be considered that the amount payable relates to the acquisition or lease of qualified property, to the lease of an eligible facility, or to the payment of qualified wages by a corporation up to the amount incurred in respect of that property, that facility or those wages by that corporation;

"designated site" means

(a)  a biotechnology development centre;

(b)  a new economy centre;

(c)  the Centre national des nouvelles technologies de Québec; or

(d)  the Cité du multimédia;

"eligibility period" of a corporation means

(a)  for the purpose of determining the amount of qualified wages paid by the corporation in a taxation year, the period that begins on the particular day that is the later of the day of coming into force of the certificate referred to in paragraph a of section 771.12 that was issued in respect of the corporation and the corporation’s reference date, if the certificate was issued after 10 March 2003, or the latest of the day on which the corporation’s first taxation year begins, the day of coming into force of that certificate and the corporation’s reference date, in any other case, and that ends on the earlier of the day that precedes the day on which the corporation ceases to be an exempt corporation and

i.  31 December 2010, if any of the following days is before 1 January 2001:

(1)  the day of coming into force of the certificate, where it is issued after 10 March 2003, or

(2)  the later of the day on which the corporation’s first taxation year begins and the day of coming into force of the certificate, in any other case,

ii.  the last day of the ten-year period that begins on the particular day, if any of the following days is after 31 December 2000 and before 1 January 2004:

(1)  the day of coming into force of the certificate, where it is issued after 10 March 2003, or

(2)  the later of the day on which the corporation’s first taxation year begins and the day of coming into force of the certificate, in any other case, or

iii.  31 December 2013, if the day of coming into force of the certificate is after 31 December 2003;

(b)  for the purpose of determining the amount that the corporation is deemed to have paid to the Minister for a taxation year under section 1029.8.36.0.25 in relation to rental expenses paid in respect of qualified property, or under section 1029.8.36.0.25.1, the five-year period that begins,

i.  where the corporation is an exempt corporation or a specified corporation in respect of a biotechnology development centre that was an exempt corporation in a preceding taxation year, on the later of the day of coming into force of the certificate referred to in paragraph a of section 771.12 that was issued in respect of the corporation and the corporation’s reference date, if that certificate was issued after 10 March 2003, or on the latest of the day on which the corporation’s first taxation year begins, the day of coming into force of that certificate and the corporation’s reference date, in any other case, or

ii.  where the corporation is a specified corporation in respect of a biotechnology development centre other than a corporation referred to in subparagraph i, on the date indicated for that purpose on the certificate that was issued to the corporation for the year in respect of a specified activity, in relation to that centre; or

(c)  for the purpose of determining the amount that the corporation is deemed to have paid to the Minister for a taxation year under section 1029.8.36.0.25 in relation to acquisition costs incurred in respect of qualified property, the three-year period that begins,

i.  where the corporation is an exempt corporation or a specified corporation in respect of a biotechnology development centre that was an exempt corporation in a preceding taxation year, on the later of the day of coming into force of the certificate referred to in paragraph a of section 771.12 that was issued in respect of the corporation and the corporation’s reference date, if that certificate was issued after 10 March 2003, or on the latest of the day on which the corporation’s first taxation year begins, the day of coming into force of that certificate and the corporation’s reference date, in any other case, or

ii.  where the corporation is a specified corporation in respect of a biotechnology development centre other than a corporation referred to in subparagraph i, on the date indicated for that purpose on the certificate that was issued to the corporation for the year in respect of a specified activity, in relation to that centre;

"eligible employee" of a corporation for part or all of a taxation year means an individual in respect of whom a certificate is issued to the corporation for the year by Investissement Québec for the purposes of this division, certifying that the individual is an eligible employee of the corporation for part or all of the year;

"eligible facility" of a person in relation to a biotechnology development centre means a facility in respect of which a certificate was issued to the person by Investissement Québec for the purposes of this division, certifying that, as the case may be,

(a)  the facility is a prescribed specialized facility that is used in respect of biotechnologies; or

(b)  it is

i.  a facility that is set up by the person in the biotechnology development centre outside premises where an exempt corporation or a specified corporation carries on its business, and

ii.  a facility that comprises, exclusively or almost exclusively, property each of which

(1)  constitutes a specialized property that is used in respect of biotechnologies,

(2)  before being set up in the biotechnology development centre, was not used for any purpose whatever or acquired for use for a purpose other than lease, and

(3)  is to be leased, on an ad hoc basis, to more than one person;

"eligible rental expenses" incurred by a corporation in respect of an eligible facility means the aggregate of all expenses incurred by the corporation for the lease of the facility, including expenses attributable to property that is necessary for the use of the facility and that is consumed in connection with that use and to a person’s wages or compensation for services rendered in connection with that use, to the extent that, where the corporation is a specified corporation in respect of a biotechnology development centre, the facility is leased for the carrying out of a specified activity of the corporation in relation to that centre;

"exempt corporation" for a taxation year means a corporation referred to in paragraph a of section 771.12 that, as the case may be,

(a)  for the purposes of the definition of "specified corporation" and section 1029.8.36.0.19, would be an exempt corporation for the year within the meaning of sections 771.12 and 771.13 if section 771.12 were read without reference to paragraph d thereof; and

(b)  in any other case, is an exempt corporation for the year within the meaning of sections 771.12 and 771.13;

"information technology development centre" has the meaning assigned by section 771.1;

"new economy centre" has the meaning assigned by section 771.1;

"qualified centre" means

(a)  a biotechnology development centre;

(b)  an information technology development centre; or

(c)  a new economy centre;

"qualified property" of a corporation means depreciable property that the corporation acquires or property that is leased by the corporation, and

(a)  that, before being acquired or leased by the corporation, has not been used for any purpose whatsoever nor acquired for use for a purpose other than lease to an exempt corporation or, where it was acquired after 30 March 2004, to a specified corporation in respect of a biotechnology development centre;

(b)  where the property is leased by the corporation, the lease began during one of the first three years of the eligibility period of the corporation that applies for the purpose of establishing the amount that the corporation is deemed to have paid to the Minister for a taxation year under section 1029.8.36.0.25 in relation to rental expenses paid in respect of the qualified property;

(c)  that the corporation begins to use within a reasonable time after its acquisition or lease;

(d)  that the corporation uses principally in a qualified centre and, exclusively or almost exclusively, to earn income from,

i.  where the corporation is an exempt corporation, a business it carries on in that centre, or

ii.  where the corporation is a specified corporation and the qualified centre is a biotechnology development centre, the part of a business it carries on in that centre that may reasonably be attributed to the carrying out of a specified activity; and

(e)  in respect of which Investissement Québec has issued a certificate for the purposes of this division or Division II.6.0.2, as it read before being repealed;

"qualified wages" paid in a taxation year by a corporation to an eligible employee means the lesser of

(a)  the amount established for the year pursuant to the first paragraph of section 1029.8.36.0.18 in relation to the eligible employee; and

(b)  the aggregate of all amounts each of which is the amount by which the wages paid by the corporation to the employee, while the employee qualified as an eligible employee of the corporation, for a pay period ending at a time in the taxation year that is within the eligibility period of the corporation and that may reasonably be considered to be paid by the corporation in the course of carrying on a business in a qualified centre, exceeds the amount of any contract payment, government assistance and non-government assistance, attributable to such wages, that the corporation has received, is entitled to receive or may reasonably expect to receive on or before the corporation’s filing-due date for that year;

"reference date" of a corporation means

(a)  if the corporation carries on or may carry on its business in an information technology development centre, 26 March 1997;

(b)  if the corporation carries on or may carry on its business in the Cité du multimédia, 16 June 1998;

(c)  if the corporation carries on or may carry on its business in a new economy centre or the Centre national des nouvelles technologies de Québec, 10 March 1999; and

(d)  if the corporation carries on or may carry on its business in a biotechnology development centre, 30 March 2001;

"rental expenses" paid by a corporation in respect of qualified property means the aggregate of the expenses paid by the corporation for the lease of the property to the extent that they are deductible in computing the income of the corporation under this Part;

"specified activity" of a corporation in relation to a designated site for a taxation year means an activity that the corporation carries out in the site in the year and in respect of which Investissement Québec issues a certificate to the corporation for the year and for the purposes of this division, certifying that the activity is,

(a)  if the designated site is a biotechnology development centre, an activity related to biotechnologies;

(b)  if the designated site is a new economy centre, an activity related to the new economy; and

(c)  if the designated site is the Centre national des nouvelles technologies de Québec or the Cité du multimédia, an activity related to information technologies or multimedia;

"specified corporation" in respect of a designated site for a taxation year means a corporation that

(a)  in the year, has an establishment in Québec and carries on a qualified business in Québec;

(b)  does not include

i.  a corporation that is exempt from tax for the year under Book VIII,

ii.  a corporation that would be exempt from tax for the year under section 985, but for section 192,

iii.  an exempt corporation for the year, or

iv.  a corporation control of which is acquired by a person or group of persons at the beginning of the year or of a preceding taxation year, but between 11 June 2003 and 31 March 2004, where the corporation carries on or may carry on its business in a biotechnology development centre, or after 11 June 2003, in any other case, unless acquiring control of the corporation

(1)  occurs before 1 July 2004 and Investissement Québec certifies that the acquisition of control results from a transaction that was sufficiently advanced on 11 June 2003 and was binding on the parties on that date,

(2)  is by a specified corporation, by a person or group of persons that controls a specified corporation, or by a group of persons each member of which is a specified corporation or a person who, alone or together with other members of the group, controls such a corporation,

(3)  derives from the exercise after 11 June 2003 of one or more rights described in paragraph b of section 20 that were acquired before 12 June 2003; and

(4)  derives from the performance after 11 June 2003 of one or more obligations described in the third paragraph of section 21.3.5 that were contracted before 12 June 2003; and

(c)  obtains for the year a certificate issued to the corporation by Investissement Québec for the purposes of this division, certifying that the corporation carries out or may carry out in the year in the designated site a specified activity in relation to that site;

"specified employee" of a corporation for part or all of a taxation year means an individual in respect of whom a certificate is issued to the corporation for the year by Investissement Québec for the purposes of this division, certifying that the individual is a specified employee of the corporation for part or all of the year;

"specified period" of a corporation for a taxation year in respect of a designated site means the portion of the year in the period that begins on the reference date of the corporation in respect of the site and that ends, as the case may be,

(a)  where the corporation is, throughout the year, a specified corporation in respect of the designated site, on

i.  31 December 2010, if the effective date of the certificate referred to in paragraph c of the definition of "specified corporation" that was issued to the corporation for its first taxation year in which the corporation carried on or could carry on its business in any designated site is before 1 January 2001, or the last day of the 10-year period that begins on that effective date if that date is before 1 January 2004 but after 31 December 2000, or

ii.  31 December 2013, in any other case; and

(b)  where the corporation ceases in the year to be a specified corporation in respect of the designated site, the earlier of the day preceding the day on which the corporation so ceases and the date that would be determined pursuant to paragraph a if that paragraph applied to the corporation for that year;

"specified wages" incurred by a corporation in a taxation year in respect of a specified employee of a designated site means the lesser of

(a)  the proportion of the amount established for the year pursuant to the second paragraph of section 1029.8.36.0.18 in relation to the specified employee that the working time spent by that employee on a specified activity of the corporation in relation to the designated site in the year is of the aggregate of the employee’s working time for the year as a specified employee of the corporation; and

(b)  the amount by which the amount of the wages incurred by the corporation in respect of the employee in the specified period of the corporation for the year in respect of the designated site, while the employee qualified as a specified employee of the corporation, to the extent that that amount is paid and that it may reasonably be considered to relate to the carrying out in the year of a specified activity in relation to the designated site having regard to the time spent thereon by the employee, exceeds the aggregate of

i.  the aggregate of all amounts each of which is an amount of government assistance or non-government assistance, attributable to such wages, that the corporation has received, is entitled to receive or may reasonably expect to receive, on or before the corporation’s filing-due date for the taxation year, and

ii.  the aggregate of all amounts each of which is the amount of a benefit or advantage in respect of such wages, other than a benefit or advantage that may reasonably be attributed to work carried out by the specified employee in connection with the carrying out of the specified activity of the corporation for the year, that a person or partnership has obtained, is entitled to obtain or may reasonably expect to obtain, on or before the corporation’s filing-due date for that taxation year, whether in the form of a reimbursement, compensation, guarantee, in the form of proceeds of disposition of property which exceed the fair market value of the property, or in any other form or manner;

"wages" means the income computed under Chapters I and II of Title II of Book III.

For the purposes of paragraph a of the definition of "qualified property" in the first paragraph, where a corporation acquires depreciable property from a person, the property acquired by the corporation is deemed not to have been used for any purpose whatever before its acquisition by the corporation nor to have been acquired, before that acquisition, for use for a purpose other than lease to an exempt corporation, if the corporation continues the carrying out of a project of the person and

(a)  the person did not acquire the property before the reference date of the corporation;

(b)  the property has not been used, or acquired for use or lease, for any purpose whatever before being acquired by the person; and

(c)  the person used the property only in connection with the project the carrying out of which is continued by the corporation.

For the purposes of paragraph d of the definition of "qualified property" in the first paragraph, where, at any time that is not before the corporation’s reference date, a corporation has acquired or leased property that is used by the corporation in the course of carrying on a business and that would be qualified property of the corporation if the definition of "qualified property" were read without reference to paragraph d thereof, the corporation is deemed to use the property principally in a qualified centre and, exclusively or almost exclusively, to earn income from a business it carries on in that centre, throughout the period that begins at that time and that ends on the day on which Investissement Québec issues a certificate referred to in paragraph a of section 771.12 to the corporation.

For the purposes of paragraphs b and c of the definition of "eligibility period" in the first paragraph, the eligibility period of a corporation that is a specified corporation in respect of a biotechnology development centre for a taxation year does not include the part of any taxation year that begins at the time the corporation ceases to be a specified corporation in respect of that centre for that year.

For the purpose of applying the definition of "specified period" in the first paragraph to a corporation that is a member of an associated group in its first taxation year in which the corporation carries on or may carry on its business in a particular designated site, the effective date of the certificate that was issued to the corporation for its first taxation year in which the corporation carried on or could carry on its business in any designated site to which subparagraph i of paragraph a of that definition refers is deemed to be the earliest of all the dates each of which is the effective date of the certificate that was issued to a member of that associated group for the member’s first taxation year in which the member carried on or could carry on business in such a site.

For the purposes of the definition of "specified wages" in the first paragraph, a specified employee who spends 90% or more of working time on a specified activity is deemed to spend all working time thereon.

Subparagraph iv of paragraph b of the definition of "specified corporation" in the first paragraph does not apply for a taxation year to a corporation that carries on or may carry on its business in a biotechnology development centre if, after 30 March 2004, Investissement Québec has issued to the corporation a certificate, referred to in paragraph c of that definition, for the year.

2000, c. 39, s. 176; 2001, c. 7, s. 169; 2001, c. 51, s. 147; 2001, c. 53, s. 260; 2001, c. 69, s. 12; 2002, c. 9, s. 76; 2003, c. 9, s. 221; 2004, c. 21, s. 338; 2005, c. 23, s. 167; 2005, c. 38, s. 255; 2006, c. 13, s. 130.

2006-03-01

1029.8.36.0.17. In this division,

"acquisition costs" incurred by a corporation in respect of qualified property means the aggregate of the costs incurred by the corporation to acquire the property and that are included in the capital cost of the property;

"associated group" in a taxation year means the group formed by all of the corporations that are associated with each other in the year;

"biotechnology development centre" has the meaning assigned by the first paragraph of section 771.1;

"Centre national des nouvelles technologies de Québec" means all the premises designated as such by Investissement Québec;

"Cité du multimédia" means all the buildings designated as such by the Minister of Finance;

"contract payment" means an amount payable under a contract by the Government of Canada or of a province, by a municipality or other public authority in Canada or by a person exempt from tax under this Part by reason of Book VIII, to the extent that it may reasonably be considered that the amount payable relates to the acquisition or lease of qualified property, to the lease of an eligible facility, or to the payment of qualified wages by a corporation up to the amount incurred in respect of that property, that facility or those wages by that corporation;

"designated site" means

(a)  a biotechnology development centre;

(b)  a new economy centre;

(c)  the Centre national des nouvelles technologies de Québec; or

(d)  the Cité du multimédia;

"eligibility period" of a corporation means

(a)  for the purpose of determining the amount of qualified wages paid by the corporation in a taxation year, the period that begins on the particular day that is the later of the day of coming into force of the certificate referred to in paragraph a of section 771.12 that was issued in respect of the corporation and the corporation’s reference date, if the certificate was issued after 10 March 2003, or the latest of the day on which the corporation’s first taxation year begins, the day of coming into force of that certificate and the corporation’s reference date, in any other case, and that ends on the earlier of the day that precedes the day on which the corporation ceases to be an exempt corporation and

i.  31 December 2010, if any of the following days is before 1 January 2001:

(1)  the day of coming into force of the certificate, where it is issued after 10 March 2003, or

(2)  the later of the day on which the corporation’s first taxation year begins and the day of coming into force of the certificate, in any other case,

ii.  the last day of the ten-year period that begins on the particular day, if any of the following days is after 31 December 2000 and before 1 January 2004:

(1)  the day of coming into force of the certificate, where it is issued after 10 March 2003, or

(2)  the later of the day on which the corporation’s first taxation year begins and the day of coming into force of the certificate, in any other case, or

iii.  31 December 2013, if the day of coming into force of the certificate is after 31 December 2003;

(b)  for the purpose of determining the amount that the corporation is deemed to have paid to the Minister for a taxation year under section 1029.8.36.0.25 in relation to rental expenses paid in respect of qualified property, or under section 1029.8.36.0.25.1, the five-year period that begins,

i.  where the corporation is an exempt corporation or a specified corporation in respect of a biotechnology development centre that was an exempt corporation in a preceding taxation year, on the later of the day of coming into force of the certificate referred to in paragraph a of section 771.12 that was issued in respect of the corporation and the corporation’s reference date, if that certificate was issued after 10 March 2003, or on the latest of the day on which the corporation’s first taxation year begins, the day of coming into force of that certificate and the corporation’s reference date, in any other case, or

ii.  where the corporation is a specified corporation in respect of a biotechnology development centre other than a corporation referred to in subparagraph i, on the date indicated for that purpose on the certificate that was issued to the corporation for the year in respect of a specified activity, in relation to that centre; or

(c)  for the purpose of determining the amount that the corporation is deemed to have paid to the Minister for a taxation year under section 1029.8.36.0.25 in relation to acquisition costs incurred in respect of qualified property, the three-year period that begins,

i.  where the corporation is an exempt corporation or a specified corporation in respect of a biotechnology development centre that was an exempt corporation in a preceding taxation year, on the later of the day of coming into force of the certificate referred to in paragraph a of section 771.12 that was issued in respect of the corporation and the corporation’s reference date, if that certificate was issued after 10 March 2003, or on the latest of the day on which the corporation’s first taxation year begins, the day of coming into force of that certificate and the corporation’s reference date, in any other case, or

ii.  where the corporation is a specified corporation in respect of a biotechnology development centre other than a corporation referred to in subparagraph i, on the date indicated for that purpose on the certificate that was issued to the corporation for the year in respect of a specified activity, in relation to that centre;

"eligible employee" of a corporation for part or all of a taxation year means an individual in respect of whom a certificate is issued to the corporation for the year by Investissement Québec for the purposes of this division, certifying that the individual is an eligible employee of the corporation for part or all of the year;

"eligible facility" of a person in relation to a biotechnology development centre means a facility in respect of which a certificate was issued to the person by Investissement Québec for the purposes of this division, certifying that, as the case may be,

(a)  the facility is a prescribed specialized facility that is used in respect of biotechnologies; or

(b)  it is

i.  a facility that is set up by the person in the biotechnology development centre outside premises where an exempt corporation or a specified corporation carries on its business, and

ii.  a facility that comprises, exclusively or almost exclusively, property each of which

(1)  constitutes a specialized property that is used in respect of biotechnologies,

(2)  before being set up in the biotechnology development centre, was not used for any purpose whatever or acquired for use for a purpose other than lease, and

(3)  is to be leased, on an ad hoc basis, to more than one person;

"eligible rental expenses" incurred by a corporation in respect of an eligible facility means the aggregate of all expenses incurred by the corporation for the lease of the facility, including expenses attributable to property that is necessary for the use of the facility and that is consumed in connection with that use and to a person’s wages or compensation for services rendered in connection with that use, to the extent that, where the corporation is a specified corporation in respect of a biotechnology development centre, the facility is leased for the carrying out of a specified activity of the corporation in relation to that centre;

"exempt corporation" for a taxation year means a corporation referred to in paragraph a of section 771.12 that, as the case may be,

(a)  for the purposes of the definition of "specified corporation" and section 1029.8.36.0.19, would be an exempt corporation for the year within the meaning of sections 771.12 and 771.13 if section 771.12 were read without reference to paragraph d thereof; and

(b)  in any other case, is an exempt corporation for the year within the meaning of sections 771.12 and 771.13;

"information technology development centre" has the meaning assigned by section 771.1;

"new economy centre" has the meaning assigned by section 771.1;

"qualified centre" means

(a)  a biotechnology development centre;

(b)  an information technology development centre; or

(c)  a new economy centre;

"qualified property" of a corporation means depreciable property that the corporation acquires or property that is leased by the corporation, and

(a)  that, before being acquired or leased by the corporation, has not been used for any purpose whatsoever nor acquired for use for a purpose other than lease to an exempt corporation or, where it was acquired after 30 March 2004, to a specified corporation in respect of a biotechnology development centre;

(b)  where the property is leased by the corporation, the lease began during one of the first three years of the eligibility period of the corporation that applies for the purpose of establishing the amount that the corporation is deemed to have paid to the Minister for a taxation year under section 1029.8.36.0.25 in relation to rental expenses paid in respect of the qualified property;

(c)  that the corporation begins to use within a reasonable time after its acquisition or lease;

(d)  that the corporation uses principally in a qualified centre and, exclusively or almost exclusively, to earn income from,

i.  where the corporation is an exempt corporation, a business it carries on in that centre, or

ii.  where the corporation is a specified corporation and the qualified centre is a biotechnology development centre, the part of a business it carries on in that centre that may reasonably be attributed to the carrying out of a specified activity; and

(e)  in respect of which Investissement Québec has issued a certificate for the purposes of this division or Division II.6.0.2, as it read before being repealed;

"qualified wages" paid in a taxation year by a corporation to an eligible employee means the lesser of

(a)  the amount established for the year pursuant to the first paragraph of section 1029.8.36.0.18 in relation to the eligible employee; and

(b)  the aggregate of all amounts each of which is the amount by which the wages paid by the corporation to the employee, while the employee qualified as an eligible employee of the corporation, for a pay period ending at a time in the taxation year that is within the eligibility period of the corporation and that may reasonably be considered to be paid by the corporation in the course of carrying on a business in a qualified centre, exceeds the amount of any contract payment, government assistance and non-government assistance, attributable to such wages, that the corporation has received, is entitled to receive or may reasonably expect to receive on or before the corporation’s filing-due date for that year;

"reference date" of a corporation means

(a)  if the corporation carries on or may carry on its business in an information technology development centre, 26 March 1997;

(b)  if the corporation carries on or may carry on its business in the Cité du multimédia, 16 June 1998;

(c)  if the corporation carries on or may carry on its business in a new economy centre or the Centre national des nouvelles technologies de Québec, 10 March 1999; and

(d)  if the corporation carries on or may carry on its business in a biotechnology development centre, 30 March 2001;

"rental expenses" paid by a corporation in respect of qualified property means the aggregate of the expenses paid by the corporation for the lease of the property to the extent that they are deductible in computing the income of the corporation under this Part;

"specified activity" of a corporation in relation to a designated site for a taxation year means an activity that the corporation carries out in the site in the year and in respect of which Investissement Québec issues a certificate to the corporation for the year and for the purposes of this division, certifying that the activity is,

(a)  if the designated site is a biotechnology development centre, an activity related to biotechnologies;

(b)  if the designated site is a new economy centre, an activity related to the new economy; and

(c)  if the designated site is the Centre national des nouvelles technologies de Québec or the Cité du multimédia, an activity related to information technologies or multimedia;

"specified corporation" in respect of a designated site for a taxation year means a corporation that

(a)  in the year, has an establishment in Québec and carries on a qualified business in Québec;

(b)  does not include

i.  a corporation that is exempt from tax for the year under Book VIII,

ii.  a corporation that would be exempt from tax for the year under section 985, but for section 192,

iii.  an exempt corporation for the year, or

iv.  a corporation control of which is acquired by a person or group of persons at the beginning of the year or of a preceding taxation year, but between 11 June 2003 and 31 March 2004, where the corporation carries on or may carry on its business in a biotechnology development centre, or after 11 June 2003, in any other case, unless acquiring control of the corporation

(1)  occurs after 11 June 2003 and before 1 July 2004, where Investissement Québec certifies that the acquisition of control results from a transaction that was sufficiently advanced on 11 June 2003 and was binding on the parties on that date,

(2)  is by a specified corporation or by a group of persons all the members of which are specified corporations, or

(3)  derives from the exercise after 11 June 2003 of one or more rights described in paragraph b of section 20 that were acquired before 12 June 2003; and

(c)  obtains for the year a certificate issued to the corporation by Investissement Québec for the purposes of this division, certifying that the corporation carries out or may carry out in the year in the designated site a specified activity in relation to that site;

"specified employee" of a corporation for part or all of a taxation year means an individual in respect of whom a certificate is issued to the corporation for the year by Investissement Québec for the purposes of this division, certifying that the individual is a specified employee of the corporation for part or all of the year;

"specified period" of a corporation for a taxation year in respect of a designated site means the portion of the year in the period that begins on the reference date of the corporation in respect of the site and that ends, as the case may be,

(a)  where the corporation is, throughout the year, a specified corporation in respect of the designated site, on

i.  31 December 2010, if the effective date of the certificate referred to in paragraph c of the definition of "specified corporation" that was issued to the corporation for its first taxation year in which the corporation carried on or could carry on its business in any designated site is before 1 January 2001, or the last day of the 10-year period that begins on that effective date if that date is before 1 January 2004 but after 31 December 2000, or

ii.  31 December 2013, in any other case; and

(b)  where the corporation ceases in the year to be a specified corporation in respect of the designated site, the earlier of the day preceding the day on which the corporation so ceases and the date that would be determined pursuant to paragraph a if that paragraph applied to the corporation for that year;

"specified wages" incurred by a corporation in a taxation year in respect of a specified employee of a designated site means the lesser of

(a)  the proportion of the amount established for the year pursuant to the second paragraph of section 1029.8.36.0.18 in relation to the specified employee that the working time spent by that employee on a specified activity of the corporation in relation to the designated site in the year is of the aggregate of the employee’s working time for the year as a specified employee of the corporation; and

(b)  the amount by which the amount of the wages incurred by the corporation in respect of the employee in the specified period of the corporation for the year in respect of the designated site, while the employee qualified as a specified employee of the corporation, to the extent that that amount is paid and that it may reasonably be considered to relate to the carrying out in the year of a specified activity in relation to the designated site having regard to the time spent thereon by the employee, exceeds the aggregate of

i.  the aggregate of all amounts each of which is an amount of government assistance or non-government assistance, attributable to such wages, that the corporation has received, is entitled to receive or may reasonably expect to receive, on or before the corporation’s filing-due date for the taxation year, and

ii.  the aggregate of all amounts each of which is the amount of a benefit or advantage in respect of such wages, other than a benefit or advantage that may reasonably be attributed to work carried out by the specified employee in connection with the carrying out of the specified activity of the corporation for the year, that a person or partnership has obtained, is entitled to obtain or may reasonably expect to obtain, on or before the corporation’s filing-due date for that taxation year, whether in the form of a reimbursement, compensation, guarantee, in the form of proceeds of disposition of property which exceed the fair market value of the property, or in any other form or manner;

"wages" means the income computed under Chapters I and II of Title II of Book III.

For the purposes of paragraph a of the definition of "qualified property" in the first paragraph, where a corporation acquires depreciable property from a person, the property acquired by the corporation is deemed not to have been used for any purpose whatever before its acquisition by the corporation nor to have been acquired, before that acquisition, for use for a purpose other than lease to an exempt corporation, if the corporation continues the carrying out of a project of the person and

(a)  the person did not acquire the property before the reference date of the corporation;

(b)  the property has not been used, or acquired for use or lease, for any purpose whatever before being acquired by the person; and

(c)  the person used the property only in connection with the project the carrying out of which is continued by the corporation.

For the purposes of paragraph d of the definition of "qualified property" in the first paragraph, where, at any time that is not before the corporation’s reference date, a corporation has acquired or leased property that is used by the corporation in the course of carrying on a business and that would be qualified property of the corporation if the definition of "qualified property" were read without reference to paragraph d thereof, the corporation is deemed to use the property principally in a qualified centre and, exclusively or almost exclusively, to earn income from a business it carries on in that centre, throughout the period that begins at that time and that ends on the day on which Investissement Québec issues a certificate referred to in paragraph a of section 771.12 to the corporation.

For the purposes of paragraphs b and c of the definition of "eligibility period" in the first paragraph, the eligibility period of a corporation that is a specified corporation in respect of a biotechnology development centre for a taxation year does not include the part of any taxation year that begins at the time the corporation ceases to be a specified corporation in respect of that centre for that year.

For the purpose of applying the definition of "specified period" in the first paragraph to a corporation that is a member of an associated group in its first taxation year in which the corporation carries on or may carry on its business in a particular designated site, the effective date of the certificate that was issued to the corporation for its first taxation year in which the corporation carried on or could carry on its business in any designated site to which subparagraph i of paragraph a of that definition refers is deemed to be the earliest of all the dates each of which is the effective date of the certificate that was issued to a member of that associated group for the member’s first taxation year in which the member carried on or could carry on business in such a site.

For the purposes of the definition of "specified wages" in the first paragraph, a specified employee who spends 90% or more of working time on a specified activity is deemed to spend all working time thereon.

Subparagraph iv of paragraph b of the definition of "specified corporation" in the first paragraph does not apply for a taxation year to a corporation that carries on or may carry on its business in a biotechnology development centre if, after 30 March 2004, Investissement Québec has issued to the corporation a certificate, referred to in paragraph c of that definition, for the year.

2000, c. 39, s. 176; 2001, c. 7, s. 169; 2001, c. 51, s. 147; 2001, c. 53, s. 260; 2001, c. 69, s. 12; 2002, c. 9, s. 76; 2003, c. 9, s. 221; 2004, c. 21, s. 338; 2005, c. 23, s. 167; 2005, c. 38, s. 255.