I-3 - Taxation Act

Section 1029.8.36.72.61.2 Disposition versions

2021-06-04

1029.8.36.72.61.2. (Repealed).

2004, c. 21, s. 399; 2005, c. 38, s. 270; 2006, c. 36, s. 168; 2021, c. 18, s. 125.

2006-12-06

1029.8.36.72.61.2. A qualified corporation that is associated with one or more other corporations at the end of a calendar year within the qualified corporation’s eligibility period, in relation to a recognized business described in paragraph b of the definition of “recognized business” in the first paragraph of section 1029.8.36.72.56, hereinafter called the “recognized business in respect of nutraceuticals”, and that encloses the documents referred to in the third paragraph with the fiscal return the qualified corporation is required to file under section 1000 for the taxation year in which the calendar year ends, is deemed, subject to the fourth paragraph, to have paid to the Minister on the qualified corporation’s balance-due day for that taxation year, on account of its tax payable for that taxation year under this Part, an amount equal to 40% of the aggregate of

(a)  subject to the second paragraph, the least of

i.  the amount by which the aggregate of all amounts each of which is the salary or wages paid by the qualified corporation to an employee in respect of a pay period, within the calendar year, for which the employee is an eligible employee, in relation to a recognized business in respect of nutraceuticals, exceeds the aggregate of all amounts each of which is, in relation to a recognized business in respect of nutraceuticals,

(1)  except in respect of a corporation that results from an amalgamation, an amount equal to zero, where, at no time in its base period, in relation to the recognized business, the corporation carried on a business in Québec in the sectors of activity described in paragraph b of the definition of “recognized business” in the first paragraph of section 1029.8.36.72.56, and

(2)  in any other case, the aggregate of all amounts each of which is the salary or wages that were paid by the corporation to an employee in respect of a pay period, within its base period, in relation to the recognized business, for which the employee is an eligible employee,

ii.  the amount by which the aggregate of all amounts each of which is the qualified corporation’s eligible amount for the calendar year, in relation to a recognized business in respect of nutraceuticals, or the aggregate of all amounts each of which is the salary or wages paid by another corporation with which the qualified corporation is associated at the end of the calendar year to an employee in respect of a pay period, within the calendar year, in which the employee reports for work at an establishment of the other corporation situated in Québec and spends, when at work, at least 90% of the time in undertaking, supervising or supporting work that is directly related to activities of the other corporation that are described in paragraph b of the definition of “recognized business” in the first paragraph of section 1029.8.36.72.56, exceeds the total of

(1)  the aggregate of all amounts each of which is the qualified corporation’s base amount in relation to a recognized business in respect of nutraceuticals that the qualified corporation carries on in the calendar year, and

(2)  the aggregate of all amounts each of which is the salary or wages paid by another corporation with which the qualified corporation is associated at the end of that calendar year to an employee in respect of a pay period, within the qualified corporation’s base period in relation to a recognized business in respect of nutraceuticals it carries on in the calendar year, in which the employee reports for work at an establishment of the other corporation situated in Québec and spends, when at work, at least 90% of the time in undertaking, supervising or supporting work that is directly related to activities of the other corporation that are described in paragraph b of the definition of “recognized business” in the first paragraph of section 1029.8.36.72.56, except if an amount is included, in respect of the employee, in relation to the other corporation, in computing an amount determined for the calendar year under this subparagraph 2 in relation to another recognized business in respect of nutraceuticals, and

iii.  the amount by which the qualified corporation’s eligible amount for the calendar year, in relation to a recognized business in respect of nutraceuticals, exceeds the aggregate of all amounts each of which is the qualified corporation’s base amount in relation to a recognized business in respect of nutraceuticals that the qualified corporation carries on in the calendar year; and

(b)  the eligible repayment of assistance of the qualified corporation for the taxation year, to the extent that the amount of the repayment is not included in computing an eligible repayment of assistance for the year for the purposes of subparagraph b of the first paragraph of section 1029.8.36.72.58.

Where the qualified corporation referred to in the first paragraph is associated, at the end of the calendar year, with at least one other qualified corporation carrying on a recognized business in respect of nutraceuticals in the taxation year in which the calendar year ends, the amount determined under subparagraph a of that first paragraph, in respect of the calendar year, shall not exceed the amount that is attributed to it in respect of the calendar year pursuant to the agreement referred to in section 1029.8.36.72.61.3.

The documents to which the first paragraph refers are the following:

(a)  the prescribed form containing the prescribed information;

(b)  a copy of the unrevoked certificate and qualification certificates issued to the qualified corporation in respect of a recognized business in respect of nutraceuticals and its eligible employees in relation to such a business; and

(c)  where the second paragraph applies, the agreement referred to in section 1029.8.36.72.61.3 filed in prescribed form.

For the purpose of computing the payments that a qualified corporation is required to make under subparagraph a of the first paragraph of section 1027, or any of sections 1145, 1159.7, 1175 and 1175.19 where they refer to that subparagraph a, the qualified corporation is deemed to have paid to the Minister, on account of the aggregate of its tax payable under this Part, for a particular taxation year that is subsequent to the first taxation year in which the first calendar year within the qualified corporation’s eligibility period ends in relation to a recognized business in respect of nutraceuticals, and of its tax payable for that particular taxation year under Parts IV, IV.1, VI and VI.1, on the date on or before which each payment is required to be made, an amount equal to the lesser of

(a)  the amount by which the particular amount that is the lesser of the amount determined under the first paragraph for the taxation year preceding the particular taxation year and the amount determined under that paragraph for the particular taxation year exceeds the aggregate of all amounts each of which is the portion of the particular amount that may reasonably be considered to be deemed to have been paid to the Minister under this paragraph in the particular taxation year but before that date; and

(b)  the amount by which the amount of that payment, determined without reference to this chapter, exceeds the aggregate of all amounts each of which is an amount that is deemed, under this chapter but otherwise than under this section, to have been paid to the Minister on that date, for the purpose of computing that payment.

2004, c. 21, s. 399; 2005, c. 38, s. 270; 2006, c. 36, s. 168.

2006-03-01

1029.8.36.72.61.2. A qualified corporation that is associated with one or more other corporations at the end of a calendar year within the qualified corporation’s eligibility period, in relation to a recognized business described in paragraph b of the definition of "recognized business" in the first paragraph of section 1029.8.36.72.56, hereinafter called the "recognized business in respect of nutraceuticals", and that encloses the documents referred to in the third paragraph with the fiscal return the qualified corporation is required to file under section 1000 for the taxation year in which the calendar year ends, is deemed, subject to the fourth paragraph, to have paid to the Minister on the qualified corporation’s balance-due day for that taxation year, on account of its tax payable for that taxation year under this Part, an amount equal to 40% of the aggregate of

(a)  subject to the second paragraph, the least of

i.  the amount by which the aggregate of all amounts each of which is the salary or wages paid by the qualified corporation to an employee in respect of a pay period, within the calendar year, for which the employee is an eligible employee, in relation to a recognized business in respect of nutraceuticals, exceeds the aggregate of all amounts each of which is, in relation to a recognized business in respect of nutraceuticals,

(1)  except in respect of a corporation that results from an amalgamation, an amount equal to zero, where, at no time in its base period, in relation to the recognized business, the corporation carried on a business in Québec in the sectors of activity described in paragraph b of the definition of "recognized business" in the first paragraph of section 1029.8.36.72.56, and

(2)  in any other case, the aggregate of all amounts each of which is the salary or wages that were paid by the corporation to an employee in respect of a pay period, within its base period, in relation to the recognized business, for which the employee is an eligible employee,

ii.  the amount by which the aggregate of all amounts each of which is the qualified corporation’s eligible amount for the calendar year, in relation to a recognized business in respect of nutraceuticals, or the aggregate of all amounts each of which is the salary or wages paid by another corporation with which the qualified corporation is associated at the end of the calendar year to an employee who reports for work at an establishment of the other corporation situated in Québec, where the salary or wages are paid in respect of a pay period, within the calendar year, throughout which the employee spends, when at work, at least 90% of the time in undertaking, supervising or supporting, in an establishment of the other corporation situated in Québec or elsewhere, but in connection with the mandates attributable to such an establishment, work that is directly related to the activities of the other corporation that are described in paragraph b of the definition of "recognized business" in the first paragraph of section 1029.8.36.72.56, exceeds the total of

(1)  the aggregate of all amounts each of which is the qualified corporation’s base amount in relation to a recognized business in respect of nutraceuticals that the qualified corporation carries on in the calendar year, and

(2)  the aggregate of all amounts each of which is the salary or wages paid by another corporation with which the qualified corporation is associated at the end of that calendar year to an employee who reports for work at an establishment of the other corporation situated in Québec, where the salary or wages are paid in respect of a pay period, within the base period of the qualified corporation, in relation to a recognized business in respect of nutraceuticals it carries on in the calendar year, throughout which the employee spends, when at work, at least 90% of the time in undertaking, supervising or supporting, in an establishment of the other corporation situated in Québec or elsewhere, but in connection with the mandates attributable to such an establishment, work that is directly related to the activities of the other corporation that are described in paragraph b of the definition of "recognized business" in the first paragraph of section 1029.8.36.72.56, except if an amount is included, in respect of the employee, in relation to the other corporation, in computing an amount determined for the calendar year under this subparagraph 2 in relation to another recognized business in respect of nutraceuticals, and

iii.  the amount by which the qualified corporation’s eligible amount for the calendar year, in relation to a recognized business in respect of nutraceuticals, exceeds the aggregate of all amounts each of which is the qualified corporation’s base amount in relation to a recognized business in respect of nutraceuticals that the qualified corporation carries on in the calendar year; and

(b)  the eligible repayment of assistance of the qualified corporation for the taxation year, to the extent that the amount of the repayment is not included in computing an eligible repayment of assistance for the year for the purposes of subparagraph b of the first paragraph of section 1029.8.36.72.58.

Where the qualified corporation referred to in the first paragraph is associated, at the end of the calendar year, with at least one other qualified corporation carrying on a recognized business in respect of nutraceuticals in the taxation year in which the calendar year ends, the amount determined under subparagraph a of that first paragraph, in respect of the calendar year, shall not exceed the amount that is attributed to it in respect of the calendar year pursuant to the agreement referred to in section 1029.8.36.72.61.3.

The documents to which the first paragraph refers are the following:

(a)  the prescribed form containing the prescribed information;

(b)  a copy of the unrevoked certificate and qualification certificates issued to the qualified corporation in respect of a recognized business in respect of nutraceuticals and its eligible employees in relation to such a business; and

(c)  where the second paragraph applies, the agreement referred to in section 1029.8.36.72.61.3 filed in prescribed form.

For the purpose of computing the payments that a qualified corporation is required to make under subparagraph a of the first paragraph of section 1027, or any of sections 1145, 1159.7, 1175 and 1175.19 where they refer to that subparagraph a, the qualified corporation is deemed to have paid to the Minister, on account of the aggregate of its tax payable under this Part, for a particular taxation year that is subsequent to the first taxation year in which the first calendar year within the qualified corporation’s eligibility period ends in relation to a recognized business in respect of nutraceuticals, and of its tax payable for that particular taxation year under Parts IV, IV.1, VI and VI.1, on the date on or before which each payment is required to be made, an amount equal to the lesser of

(a)  the amount by which the particular amount that is the lesser of the amount determined under the first paragraph for the taxation year preceding the particular taxation year and the amount determined under that paragraph for the particular taxation year exceeds the aggregate of all amounts each of which is the portion of the particular amount that may reasonably be considered to be deemed to have been paid to the Minister under this paragraph in the particular taxation year but before that date; and

(b)  the amount by which the amount of that payment, determined without reference to this chapter, exceeds the aggregate of all amounts each of which is an amount that is deemed, under this chapter but otherwise than under this section, to have been paid to the Minister on that date, for the purpose of computing that payment.

2004, c. 21, s. 399; 2005, c. 38, s. 270.