I-3 - Taxation Act

Section 1029.8.36.0.3.65 Disposition versions

2021-06-04

1029.8.36.0.3.65. (Repealed).

2003, c. 9, s. 219; 2004, c. 21, s. 335; 2006, c. 13, s. 128; 2021, c. 18, s. 119.

2006-06-13

1029.8.36.0.3.65. For the purpose of computing the amount that is deemed to have been paid to the Minister by a qualified corporation, for a particular taxation year, under section 1029.8.36.0.3.61 or 1029.8.36.0.3.62, the following rules apply, subject to the second paragraph:

(a)  the amount of the salaries or wages referred to in the definitions of “base amount” and “eligible amount” in the first paragraph of section 1029.8.36.0.3.60, in subparagraph i of subparagraph a of the first paragraph of section 1029.8.36.0.3.61 or in subparagraph i of subparagraph a of the first paragraph of section 1029.8.36.0.3.62 and paid by the qualified corporation, and the amount of the salaries or wages referred to in subparagraph ii of subparagraph a of the first paragraph of section 1029.8.36.0.3.62 and paid by a corporation associated with the qualified corporation shall be reduced, where applicable,

i.  by the amount of any contract payment, government assistance or non-government assistance attributable to the salaries or wages that the qualified corporation or the corporation associated with it, as the case may be, has received, is entitled to receive or may reasonably expect to receive, on or before its filing-due date for its taxation year, except any amount of government assistance that is an amount that the qualified corporation or the corporation associated with it, as the case may be, is deemed to have paid to the Minister under this chapter for any taxation year,

ii.  by the portion of such salaries or wages that may reasonably be considered to be included in computing an expenditure in respect of which the qualified corporation or the corporation associated with it, as the case may be, is deemed to have paid an amount to the Minister under this chapter for any taxation year, and

iii.  by the amount of any benefit or advantage, 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, other than a benefit or advantage derived from the performance of the duties of an employee, that a person or partnership has obtained, is entitled to obtain or may reasonably expect to obtain, on or before the qualified corporation’s filing-due date for its taxation year, to the extent that the benefit or advantage may reasonably be considered to be attributable, directly or indirectly, to part or all of the amount of the salaries or wages, other than those referred to in subparagraph ii, paid by the qualified corporation or the corporation associated with it, as the case may be;

(b)  the amount of the salaries or wages paid by a particular qualified corporation associated with one or more other qualified corporations, determined for the purpose of computing the amount that may be attributed, in respect of a calendar year, in accordance with section 1029.8.36.0.3.63 to one or more of their number, shall be reduced, where applicable,

i.  by the amount of any contract payment, government assistance or non-government assistance attributable to the salaries or wages that the particular qualified corporation has received, is entitled to receive or may reasonably expect to receive, on or before its filing-due date for its taxation year, except any amount of government assistance that is an amount that the particular qualified corporation is deemed to have paid to the Minister under this chapter for any taxation year,

ii.  by the portion of such salaries or wages that may reasonably be considered to be included in computing an expenditure in respect of which the particular qualified corporation is deemed to have paid an amount to the Minister under this chapter for any taxation year, and

iii.  by the amount of any benefit or advantage, 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, other than a benefit or advantage derived from the performance of the duties of an eligible employee, that a person or partnership has obtained, is entitled to obtain or may reasonably expect to obtain, on or before the particular qualified corporation’s filing-due date for its taxation year, to the extent that the benefit or advantage may reasonably be considered to be attributable, directly or indirectly, to part or all of the amount of the salaries or wages, other than those referred to in subparagraph ii, paid by the particular qualified corporation; and

(c)  where the amount of the salary or wages of an employee referred to in paragraph b of the definition of “eligible amount” in the first paragraph of section 1029.8.36.0.3.60, that is paid by the corporation or a corporation associated with it in respect of the calendar year ending in the particular taxation year, in relation to a recognized business, is reduced, as a consequence of the application of subparagraph a, by the amount, in this subparagraph referred to as the “reduction amount of the salaries or wages”, that is the portion of such a salary or wages that may reasonably be considered to be included in computing an expenditure in respect of which the corporation or the corporation associated with it, as the case may be, is deemed to have paid an amount to the Minister under another division of this chapter for the particular taxation year, the aggregate of all amounts each of which is the amount, determined after the application of subparagraph a, of the salaries or wages referred to in paragraph b of the definition of “base amount” in the first paragraph of section 1029.8.36.0.3.60 paid by the corporation or the corporation associated with it, as the case may be, in relation to the recognized business, shall be reduced by the lesser of

i.  the amount by which the part of the amount of the salary or wages of the employee referred to in paragraph b of the definition of “eligible amount” in the first paragraph of section 1029.8.36.0.3.60, determined before the application of this section, paid to the employee by the corporation or the corporation associated with it, as the case may be, in the corporation’s base period, in relation to the recognized business, that may reasonably be considered to be included in computing an expenditure in respect of which the corporation or the corporation associated with it would have been deemed to have paid an amount to the Minister under that other division of this chapter for the particular taxation year if the salary or wages had been paid in the particular taxation year, exceeds the portion of such a salary or wages that may reasonably be considered to be included in computing an expenditure in respect of which the corporation or the corporation associated with it is deemed to have paid an amount to the Minister under that other division of this chapter for the taxation year in which its base period ends, in relation to the recognized business, and

ii.  the reduction amount of the salaries or wages in relation to the recognized business.

The aggregate of the amounts referred to in the first paragraph that reduced the amount of the salaries or wages that the qualified corporation or a corporation associated with it paid in respect of a pay period within the qualified corporation’s base period, in relation to a recognized business, shall not exceed, for each of those corporations, the aggregate of the amounts referred to in the first paragraph that reduced the amount of the salaries or wages paid by the qualified corporation or the corporation associated with it, in relation to the recognized business, in respect of a pay period within the calendar year ending in its particular taxation year.

2003, c. 9, s. 219; 2004, c. 21, s. 335; 2006, c. 13, s. 128.

2006-03-01

1029.8.36.0.3.65. For the purpose of computing the amount that is deemed to have been paid to the Minister by a qualified corporation, for a particular taxation year, under section 1029.8.36.0.3.61 or 1029.8.36.0.3.62, the following rules apply, subject to the second paragraph:

(a)  the amount of the salaries or wages referred to in the definitions of "base amount" and "eligible amount" in the first paragraph of section 1029.8.36.0.3.60, in subparagraph i of subparagraph a of the first paragraph of section 1029.8.36.0.3.61 or in subparagraph i of subparagraph a of the first paragraph of section 1029.8.36.0.3.62 and paid by the qualified corporation, and the amount of the salaries or wages referred to in subparagraph ii of subparagraph a of the first paragraph of section 1029.8.36.0.3.62 and paid by a corporation associated with the qualified corporation shall be reduced, where applicable,

i.  by the amount of any government assistance or non-government assistance attributable to the salaries or wages that the qualified corporation or the corporation associated with it, as the case may be, has received, is entitled to receive or may reasonably expect to receive, on or before its filing-due date for its taxation year, except any amount of government assistance that reduced the amount of the salaries or wages referred to in subparagraph ii,

ii.  by the portion of such salaries or wages that may reasonably be considered to be included in computing an expenditure in respect of which the qualified corporation or the corporation associated with it, as the case may be, is deemed to have paid an amount to the Minister under this chapter for any taxation year, and

iii.  by the amount of any benefit or advantage, 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, other than a benefit or advantage derived from the performance of the duties of an employee, that a person or partnership has obtained, is entitled to obtain or may reasonably expect to obtain, on or before the qualified corporation’s filing-due date for its taxation year, to the extent that the benefit or advantage may reasonably be considered to be attributable, directly or indirectly, to part or all of the amount of the salaries or wages paid by the qualified corporation or the corporation associated with it, as the case may be;

(b)  the amount of the salaries or wages paid by a particular qualified corporation associated with one or more other qualified corporations, determined for the purpose of computing the amount that may be attributed, in respect of a calendar year, in accordance with section 1029.8.36.0.3.63 to one or more of their number, shall be reduced, where applicable,

i.  by the amount of any government assistance or non-government assistance attributable to the salaries or wages that the particular qualified corporation has received, is entitled to receive or may reasonably expect to receive, on or before its filing-due date for its taxation year, except any amount of government assistance that reduced the amount of the salaries or wages referred to in subparagraph ii,

ii.  by the portion of such salaries or wages that may reasonably be considered to be included in computing an expenditure in respect of which the particular qualified corporation is deemed to have paid an amount to the Minister under this chapter for any taxation year, and

iii.  by the amount of any benefit or advantage, 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, other than a benefit or advantage derived from the performance of the duties of an eligible employee, that a person or partnership has obtained, is entitled to obtain or may reasonably expect to obtain, on or before the particular qualified corporation’s filing-due date for its taxation year, to the extent that the benefit or advantage may reasonably be considered to be attributable, directly or indirectly, to part or all of the amount of the salaries or wages paid by the particular qualified corporation; and

(c)  where the amount of the salary or wages of an employee referred to in paragraph b of the definition of "eligible amount" in the first paragraph of section 1029.8.36.0.3.60, that is paid by the corporation or a corporation associated with it in respect of the calendar year ending in the particular taxation year, in relation to a recognized business, is reduced, as a consequence of the application of subparagraph a, by the amount, in this subparagraph referred to as the "reduction amount of the salaries or wages", that is the portion of such a salary or wages that may reasonably be considered to be included in computing an expenditure in respect of which the corporation or the corporation associated with it, as the case may be, is deemed to have paid an amount to the Minister under another division of this chapter for the particular taxation year, the aggregate of all amounts each of which is the amount, determined after the application of subparagraph a, of the salaries or wages referred to in paragraph b of the definition of "base amount" in the first paragraph of section 1029.8.36.0.3.60 paid by the corporation or the corporation associated with it, as the case may be, in relation to the recognized business, shall be reduced by the lesser of

i.  the amount by which the part of the amount of the salary or wages of the employee referred to in paragraph b of the definition of "eligible amount" in the first paragraph of section 1029.8.36.0.3.60, determined before the application of this section, paid to the employee by the corporation or the corporation associated with it, as the case may be, in the corporation’s base period, in relation to the recognized business, that may reasonably be considered to be included in computing an expenditure in respect of which the corporation or the corporation associated with it would have been deemed to have paid an amount to the Minister under that other division of this chapter for the particular taxation year if the salary or wages had been paid in the particular taxation year, exceeds the portion of such a salary or wages that may reasonably be considered to be included in computing an expenditure in respect of which the corporation or the corporation associated with it is deemed to have paid an amount to the Minister under that other division of this chapter for the taxation year in which its base period ends, in relation to the recognized business, and

ii.  the reduction amount of the salaries or wages in relation to the recognized business.

The aggregate of the amounts referred to in the first paragraph that reduced the amount of the salaries or wages that the qualified corporation or a corporation associated with it paid in respect of a pay period within the qualified corporation’s base period, in relation to a recognized business, shall not exceed, for each of those corporations, the aggregate of the amounts referred to in the first paragraph that reduced the amount of the salaries or wages paid by the qualified corporation or the corporation associated with it, in relation to the recognized business, in respect of a pay period within the calendar year ending in its particular taxation year.

2003, c. 9, s. 219; 2004, c. 21, s. 335.