I-3 - Taxation Act

Section 1029.8.36.166.54 Disposition versions

2023-03-15

1029.8.36.166.54. For the purpose of applying section 1029.8.36.166.53 to a corporation for a particular taxation year, the eligible expenses, in respect of a qualified property, of the corporation for a preceding taxation year or of a partnership for a fiscal period of the partnership that ends in that preceding year and at the end of which the corporation was a member of the partnership are deemed to be repaid to the corporation or partnership, as the case may be, at a particular time of the period described in the second paragraph, where the property ceases at that time, otherwise than by reason of its loss, of its involuntary destruction by fire, theft or water, or of a major breakdown of the property, to be used solely in Québec to earn income from a business carried on

(a)  by the first purchaser of the property, where the first purchaser owns it at the particular time; or

(b)  by a subsequent purchaser of the property that acquired it in any of the circumstances in which section 130R149 of the Regulation respecting the Taxation Act (chapter I-3, r. 1) applies, where the subsequent purchaser owns it at the particular time.

The period to which the first paragraph refers is the period that begins on the particular day on which the property begins to be used by its first purchaser or by a subsequent purchaser that acquired the property in any of the circumstances in which section 130R149 of the Regulation respecting the Taxation Act applies and ends on the earlier of

(a)  the 730th day following the particular day; and

(b)  the last day of the particular taxation year or of the partnership’s fiscal period that ends in that year, as the case may be.

This section does not apply to a corporation for a taxation year, in relation to eligible expenses in respect of a qualified property of the corporation for a particular preceding taxation year or of a partnership of which the corporation is a member for a fiscal period that ends in the particular preceding taxation year, if section 1029.8.36.166.48 applied, in relation to the eligible expenses, for the particular preceding taxation year.

2009, c. 15, s. 303; 2023, c. 2, s. 51.

2009-06-04

1029.8.36.166.54. For the purpose of applying section 1029.8.36.166.53 to a corporation for a taxation year, if a qualified property in respect of which expenses, incurred by the corporation or a partnership, are eligible expenses of the corporation for a particular preceding taxation year or of the partnership for a fiscal period of the partnership that ends in the particular preceding year and at the end of which the corporation was a member of the partnership, ceases, at a particular time of the period described in the second paragraph, otherwise than by reason of its loss, of its involuntary destruction by fire, theft or water, or of a major breakdown of the property, to be used solely in Québec to earn income from a business carried on in the following manner, the eligible expenses are deemed to be repaid to the corporation or partnership, as the case may be, at that time:

(a)  by the first purchaser of the property and that time is also in the portion of that period in which the first purchaser owns the property; or

(b)  by a subsequent purchaser of the property that acquired it in any of the circumstances in which section 130R149 of the Regulation respecting the Taxation Act (chapter I-3, r. 1) applies, and that time is also in the portion of that period in which the subsequent purchaser owns the property.

The period to which the first paragraph refers is the period that begins on the particular day on which the property begins to be used by the first purchaser of the property or by a subsequent purchaser of the property that acquired it in any of the circumstances in which section 130R149 of the Regulation respecting the Taxation Act applies, and that ends 730 days after the particular day or—if it precedes the day that is 730 days after the particular day—on the corporation’s filing-due date for the taxation year that includes the particular time or for the corporation’s taxation year in which the partnership’s fiscal period that includes the particular time ends, as the case may be.

This section does not apply to a corporation for a taxation year, in relation to eligible expenses in respect of a qualified property of the corporation for a particular preceding taxation year or of a partnership of which the corporation is a member for a fiscal period that ends in the particular preceding taxation year, if section 1029.8.36.166.48 applied, in relation to the eligible expenses, for the particular preceding taxation year.

2009, c. 15, s. 303.