I-3 - Taxation Act

Section 1029.8.36.4 Disposition versions

2019-12-11

1029.8.36.4. In this division,

“apparent payment” means an amount paid or payable by a qualified outside consultant for the use of premises, installations or equipment, or for the supply of services, that may reasonably be considered to be included in an expenditure referred to in section 1029.8.36.5 or 1029.8.36.6;

“contract payment” means an amount payable under a contract by the Government of Canada or of a province, by a municipality or other Canadian public authority 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 a design or pattern drafting activity of a qualified corporation or qualified partnership, as the case may be, and up to the amount incurred by the qualified corporation or qualified partnership in respect of that activity;

“qualified designer” means an individual who holds, in that capacity, a certificate of qualification issued by the Minister of Economy and Innovation for the purposes of this division;

“qualified corporation”, for a taxation year, means a corporation that, in the year, has an establishment in Québec and carries on a qualified business in Québec, but does not include

(a)  a corporation that is exempt from tax for the year under Book VIII; or

(b)  a corporation that would be exempt from tax for the year under section 985 but for section 192;

(c)  (paragraph repealed);

(d)  (paragraph repealed);

“qualified outside consultant” means a person or partnership that holds, in that capacity, a certificate of qualification issued by the Minister of Economy and Innovation for the purposes of this division;

“qualified partnership”, for a fiscal period, means a partnership which, if it were a corporation, would be a qualified corporation for that fiscal period;

“qualified patternmaker” means an individual who holds, in that capacity, a certificate of qualification issued by the Minister of Economy and Innovation for the purposes of this division;

“wages” means the income computed, for a particular period, pursuant to Chapters I and II of Title II of Book III.

1995, c. 1, s. 157; 1995, c. 63, s. 178; 1997, c. 3, s. 62; 1997, c. 31, s. 143; 1998, c. 16, s. 230; 1999, c. 83, s. 208; 2000, c. 5, s. 262; 2000, c. 39, s. 177; 2001, c. 51, s. 228; 2001, c. 53, s. 260; 2002, c. 9, s. 84; 2004, c. 21, s. 348; 2005, c. 1, s. 241; 2006, c. 13, s. 135; 2019, c. 14, s. 351; 2019, c. 29, s. 1.

2019-06-19

1029.8.36.4. In this division,

“apparent payment” means an amount paid or payable by a qualified outside consultant for the use of premises, installations or equipment, or for the supply of services, that may reasonably be considered to be included in an expenditure referred to in section 1029.8.36.5 or 1029.8.36.6;

“contract payment” means an amount payable under a contract by the Government of Canada or of a province, by a municipality or other Canadian public authority 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 a design or pattern drafting activity of a qualified corporation or qualified partnership, as the case may be, and up to the amount incurred by the qualified corporation or qualified partnership in respect of that activity;

“qualified designer” means an individual who holds, in that capacity, a certificate of qualification issued by the Minister of Economic Development, Innovation and Export Trade for the purposes of this division;

“qualified corporation”, for a taxation year, means a corporation that, in the year, has an establishment in Québec and carries on a qualified business in Québec, but does not include

(a)  a corporation that is exempt from tax for the year under Book VIII; or

(b)  a corporation that would be exempt from tax for the year under section 985 but for section 192;

(c)  (paragraph repealed);

(d)  (paragraph repealed);

“qualified outside consultant” means a person or partnership that holds, in that capacity, a certificate of qualification issued by the Minister of Economic Development, Innovation and Export Trade for the purposes of this division;

“qualified partnership”, for a fiscal period, means a partnership which, if it were a corporation, would be a qualified corporation for that fiscal period;

“qualified patternmaker” means an individual who holds, in that capacity, a certificate of qualification issued by the Minister of Economic Development, Innovation and Export Trade for the purposes of this division;

“wages” means the income computed, for a particular period, pursuant to Chapters I and II of Title II of Book III.

1995, c. 1, s. 157; 1995, c. 63, s. 178; 1997, c. 3, s. 62; 1997, c. 31, s. 143; 1998, c. 16, s. 230; 1999, c. 83, s. 208; 2000, c. 5, s. 262; 2000, c. 39, s. 177; 2001, c. 51, s. 228; 2001, c. 53, s. 260; 2002, c. 9, s. 84; 2004, c. 21, s. 348; 2005, c. 1, s. 241; 2006, c. 13, s. 135; 2019, c. 14, s. 351.

2006-06-13

1029.8.36.4. In this division,

“apparent payment” means an amount paid or payable by a qualified outside consultant for the use of premises, installations or equipment, or for the supply of services, that may reasonably be considered to be included in an expenditure referred to in section 1029.8.36.5 or 1029.8.36.6;

“contract payment” means an amount payable under a contract by the Government of Canada or of a province, by a municipality or other Canadian public authority 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 a design or pattern drafting activity of a qualified corporation or qualified partnership, as the case may be, and up to the amount incurred by the qualified corporation or qualified partnership in respect of that activity;

“qualified designer” means an individual who holds, in that capacity, a certificate of qualification issued by the Minister of Economic Development, Innovation and Export Trade for the purposes of this division;

“qualified corporation”, for a taxation year, means a corporation that, in the year, has an establishment in Québec and carries on a qualified business in Québec, but does not include

(a)  a corporation that is exempt from tax for the year under Book VIII, other than an insurer contemplated in paragraph k of section 998 not so exempt from tax on the totality of its taxable income for the year by reason of section 999.0.1;

(b)  a corporation that would be exempt from tax for the year under section 985 but for section 192;

(c)  (paragraph repealed);

(d)  (paragraph repealed);

“qualified outside consultant” means a person or partnership that holds, in that capacity, a certificate of qualification issued by the Minister of Economic Development, Innovation and Export Trade for the purposes of this division;

“qualified partnership”, for a fiscal period, means a partnership which, if it were a corporation, would be a qualified corporation for that fiscal period;

“qualified patternmaker” means an individual who holds, in that capacity, a certificate of qualification issued by the Minister of Economic Development, Innovation and Export Trade for the purposes of this division;

“wages” means the income computed, for a particular period, pursuant to Chapters I and II of Title II of Book III.

1995, c. 1, s. 157; 1995, c. 63, s. 178; 1997, c. 3, s. 62; 1997, c. 31, s. 143; 1998, c. 16, s. 230; 1999, c. 83, s. 208; 2000, c. 5, s. 262; 2000, c. 39, s. 177; 2001, c. 51, s. 228; 2001, c. 53, s. 260; 2002, c. 9, s. 84; 2004, c. 21, s. 348; 2005, c. 1, s. 241; 2006, c. 13, s. 135.

2006-03-01

1029.8.36.4. In this division,

"apparent payment" means an amount paid or payable by a design consultant for the use of premises, installations or equipment, or for the supply of services, that may reasonably be considered to be included in an expenditure referred to in section 1029.8.36.5 or 1029.8.36.6;

"contract payment" means an amount payable under a contract by the Government of Canada or of a province, by a municipality or other Canadian public authority 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 a design activity of a qualified corporation or qualified partnership, as the case may be, and up to the amount incurred in respect of that design activity by the qualified corporation or qualified partnership, as the case may be;

"outside consulting contract" means a written contract entered into between a qualified corporation or qualified partnership and a design consultant for the carrying out of a design activity, but does not include such a contract

(a)  entered into between a qualified corporation and a design consultant where the qualified corporation or a specified shareholder or specified member of that corporation does not deal at arm’s length with the consultant or, where the consultant is a partnership, with a member of the partnership;

(b)  entered into between a qualified partnership and a design consultant where either a member of the qualified partnership or a specified shareholder or specified member of a corporation that is a member of the partnership does not deal at arm’s length with the consultant or, where the consultant is a partnership, with a member of the partnership; or

(c)  where the individual responsible for the planning and designing or the creative processes relating to the design activity is

i.  a particular employee, a specified shareholder or a specified member of a qualified corporation or of a corporation with which the qualified corporation does not deal at arm’s length,

ii.  a particular employee of the qualified partnership or a particular employee, a specified shareholder or a specified member of a qualified corporation that is a member of the qualified partnership or of a corporation with which such a qualified corporation does not deal at arm’s length, or

iii.  a specified shareholder of a corporation that carries on a personal services business or an employee of such a corporation, where a shareholder thereof is both a specified shareholder of the corporation and

(1)  a particular employee, a specified shareholder or a specified member of the qualified corporation or of a corporation with which the qualified corporation does not deal at arm’s length, or

(2)  a particular employee of the qualified partnership or a particular employee, a specified shareholder or a specified member of a qualified corporation that is a member of the qualified partnership or of a corporation with which such a qualified corporation does not deal at arm’s length;

"particular designer" of a qualified corporation means an individual who is an employee of an establishment of the corporation situated in Québec;

"qualified corporation", for a taxation year, means a corporation that, in the year, has an establishment in Québec and carries on a qualified business in Québec, but does not include

(a)  a corporation that is exempt from tax for the year under Book VIII, other than an insurer contemplated in paragraph k of section 998 not so exempt from tax on the totality of its taxable income for the year by reason of section 999.0.1;

(b)  a corporation that would be exempt from tax for the year under section 985 but for section 192;

(c)  (paragraph repealed);

(d)  (paragraph repealed);

"qualified partnership", for a fiscal period, means a partnership which, if it were a corporation, would be a qualified corporation for that fiscal period;

"qualified wages" incurred by a qualified corporation in a particular period of a taxation year, as part of a design activity, means the lesser of $60,000 and the amount by which the portion of an expenditure incurred after 31 January 1994 and in that particular period as wages, in respect of a particular designer participating in that activity and that may reasonably be considered to relate to that activity exceeds the amount of any contract payment, government assistance and non-government assistance, attributable to such wages, that the qualified corporation has received, is entitled to receive or can reasonably expect to receive on or before the qualified corporation’s filing-due date for that taxation year;

"specified member" of a corporation that is a cooperative, in a taxation year, means a member having, directly or indirectly, at any time in the year, at least 10% of the votes at a meeting of the members of the cooperative;

"wages" means the income computed, for a particular period, pursuant to Chapters I and II of Title II of Book III.

In paragraph c of the definition of "outside consulting contract" in the first paragraph, "particular employee" of a corporation or partnership means an employee of the corporation or partnership, as the case may be, or a person who ceased working for the corporation or partnership, as the case may be, within the 12 months preceding the date on which the contract referred to in the definition was entered into.

For the purposes of the definition of "qualified wages" in the first paragraph, the amount of $60,000 in the definition shall be replaced

(a)  where the taxation year of the corporation has fewer than 52 weeks, by the amount obtained by multiplying $60,000 by the proportion that the number of weeks in the taxation year is of 52; and

(b)  where the particular designer is an employee of the corporation only for part of the taxation year of the corporation, by the amount obtained by multiplying $60,000 or the amount resulting from the application of subparagraph a for that year, as the case may be, by the proportion that the number of days during which the particular designer is an employee of the corporation in the taxation year is of the number of days in the taxation year.

1995, c. 1, s. 157; 1995, s. 63, s. 178; 1997, c. 3, s. 62; 1997, c. 31, s. 143; 1998, c. 16, s. 230; 1999, c. 83, s. 208; 2000, c. 5, s. 262; 2000, c. 39, s. 177; 2001, c. 51, s. 228; 2001, c. 53, s. 260; 2002, c. 9, s. 84; 2004, c. 21, s. 348; 2005, c. 1, s. 241.