I-3 - Taxation Act

Section 1029.8.36.0.98 Disposition versions

2011-12-09

1029.8.36.0.98. (Repealed).

2006, c. 36, s. 147; 2011, c. 34, s. 83.

2006-12-06

1029.8.36.0.98. For the purposes of subparagraph iii of subparagraph a of the second paragraph of section 1029.8.36.0.95, the balance of the qualified corporation’s cumulative ceiling on the production of ethanol, for the taxation year, is

(a)  if the qualified corporation is a member of an associated group in the taxation year, the number of litres attributed for the taxation year to the qualified corporation pursuant to the agreement described in the second paragraph or, in the absence of such an agreement, zero or the number of litres, determined with reference to the rules set out in the second paragraph, attributed to the qualified corporation by the Minister, where applicable, for the taxation year; and

(b)  in any other case, the amount by which 1.2 billion litres exceed the total of the numbers of litres each of which is the number of litres determined under subparagraph a of the second paragraph of section 1029.8.36.0.95,

i.  in respect of the qualified corporation or of another corporation with which it is associated in the taxation year, for a month of a taxation year preceding the taxation year, or

ii.  in respect of a corporation that was associated with a corporation referred to in subparagraph i for the last time in a particular taxation year that precedes the taxation year, for a month of the particular taxation year or of a preceding taxation year.

The agreement to which subparagraph a of the first paragraph refers is the agreement under which all of the qualified corporations that are members of the associated group in the taxation year attribute to one or more of their number, for the purposes of this section, a number of litres; for that purpose, the total number of litres so attributed for the taxation year must not be greater than the amount by which 1.2 billion litres exceed the total of the numbers of litres each of which is the number of litres determined under subparagraph a of the second paragraph of section 1029.8.36.0.95,

(a)  in respect of a qualified corporation that is a member of the associated group or another corporation that is not a member of the associated group but with which a qualified corporation that is a member of the associated group is associated in the taxation year, for a month of a taxation year preceding the taxation year; or

(b)  in respect of a corporation that was associated with a corporation referred to in subparagraph a for the last time in a particular taxation year that precedes the taxation year, for a month of the particular taxation year or of a preceding taxation year.

If, in a particular taxation year, all or a portion of a corporation’s eligible production of ethanol, for a preceding taxation year, is sold to a person or partnership that is not the holder of a collection officer’s permit issued under the Fuel Tax Act (chapter T-1) or ceases to be reasonably considered to be expected to be sold subsequently to such a holder, the number of litres determined under subparagraph a of the second paragraph of section 1029.8.36.0.95, in respect of the corporation, for a month of that preceding taxation year must, for the application of this section to the particular taxation year and subsequent taxation years, be determined on the assumption that that event occurred in that preceding taxation year and that the corporation sold its eligible production of ethanol for that preceding taxation year in the order in which it carried out the production.

2006, c. 36, s. 147.