I-3 - Taxation Act

Section 1029.8.36.166.4 Disposition versions

2012-05-09

1029.8.36.166.4. (Repealed).

2003, c. 9, s. 340; 2012, c. 8, s. 228.

2006-03-01

1029.8.36.166.4. The amount to which the definition of “expenditure in respect of labour recruitment and training” in section 1029.8.36.166.1 refers in respect of a corporation for a taxation year is equal to the aggregate of all amounts each of which is an expenditure that is reasonable in the circumstances and incurred by the corporation in the year but in the period between 26 April 2000 and 1 January 2004, in relation to an eligible activity of the corporation engaged in by the corporation in that period, each of which is expenses relating to the recruitment or training of an employee of the establishment of the corporation situated in Québec where the corporation engages in an eligible activity, in this section referred to as the “eligible employee”, whose duties consist in rendering services in respect of an eligible activity of the corporation as a market operator or market maker, or as a supervisor, and that are described in any of the following subparagraphs:

(a)  advertising expenses for recruitment purposes;

(b)  expenses and fees paid to a personnel recruitment agency;

(c)  travel expenses incurred to conduct an interview with a candidate;

(d)  registration fees for a course or exam, including expenses relating to the educational material required by the eligible employee registered in the course or exam and, where applicable, classroom rental expenses, to the extent that the course or exam is related to the performance of the duties of the eligible employee in connection with the carrying out of an eligible activity of the corporation;

(e)  the wages paid to an eligible employee in respect of the eligible employee’s apprenticeship period; or

(f)  the expenses and fees paid to a consultant for the provision of training services intended primarily to complete the training of an eligible employee of the corporation in the strategies and procedures applicable to an eligible activity of the corporation.

For the purposes of the first paragraph, the following rules apply:

(a)  the aggregate of all amounts each of which is the wages paid by the corporation to an eligible employee in respect of the eligible employee’s apprenticeship period and that the corporation includes in computing the expenditure in respect of labour recruitment and training for one or more taxation years, may not exceed an amount equal to the wages ordinarily paid to that employee for 30 days of work; and

(b)  the amounts referred to in any of the subparagraphs of the first paragraph incurred by the corporation in a taxation year preceding the year in which the corporation qualified as a qualified corporation for the first time, in this subparagraph referred to as the “qualification year”, are deemed to be incurred in the qualification year, where it is reasonable to consider that they were incurred for the sole purpose of enabling the corporation to engage in an eligible activity in an establishment situated in Québec.

For the purposes of subparagraph e of the first paragraph and subparagraph a of the second paragraph, the following rules apply:

(a)  “wages” means the income computed under Chapters I and II of Title II of Book III; and

(b)  the apprenticeship period of an employee includes the days spent in class and those spent in workplace training.

2003, c. 9, s. 340.