I-3 - Taxation Act

Section 1175.26 Disposition versions

2006-12-06

1175.26. Where a qualification certificate issued by the Minister of Finance, in relation to a major investment project, in respect of a calendar year is revoked in a particular taxation year of a person and, in relation to the major investment project, that person deducted an amount in computing the person’s taxable income under section 737.18.17, or in computing the person’s paid-up capital under section 1138.2.2 or 1141.8, reduced the person’s tax payable under Part VI pursuant to section 1170.1, or under Part VI.1 pursuant to section 1175.4.1, or paid or is deemed to have paid wages in respect of which no contribution was payable under the Act respecting the Régie de l’assurance maladie du Québec (chapter R-5) because of subparagraph d of the seventh paragraph of section 34 of that Act, the person shall pay for the particular taxation year a tax equal to the aggregate of

(a)  the aggregate of all amounts each of which is the amount by which the tax, in the third and fourth paragraphs referred to as the “notional tax”, that would have been payable by the person under Part I for a taxation year preceding the particular year, if, in relation to the amount deducted in computing the person’s taxable income, the revocation had been taken into account, exceeds the tax determined by the Minister, in the third paragraph referred to as the “real tax”, that is payable by the person under that Part for that preceding year;

(b)  the aggregate of all amounts each of which is the amount by which the tax, in the third and fourth paragraphs referred to as the “notional tax on capital”, that would have been payable by the person under Part IV, VI or VI.1, for a taxation year preceding the particular year or a 12-month period ending in the preceding taxation year, as the case may be, if, in relation to the amount deducted in computing the person’s paid-up capital or to the reduction of the person’s tax payable under Part VI or VI.1, the revocation had been taken into account, exceeds the tax determined by the Minister, in the third paragraph referred to as the “real tax on capital”, that is payable by the person under Part IV, VI or VI.1 for that preceding year or that 12-month period; and

(c)  the amount by which the amount of contribution payable by the person, taking the revocation into account, under section 34 of the Act respecting the Régie de l’assurance maladie du Québec, in respect of the wages paid or deemed to be paid in the calendar year, exceeds the amount of the contribution payable by the person, but for the revocation, under that section 34 in respect of those wages, except to the extent that that excess amount has become otherwise payable by the person.

Similarly, a person shall pay, for a particular taxation year, where the initial qualification certificate issued or deemed to be issued by the Minister of Finance, in respect of a major investment project, is revoked at any time in the particular year, a tax equal to the aggregate of all amounts each of which is the tax that would be payable by that person, under the first paragraph, for the particular year, if each qualification certificate valid at that time, issued by the Minister of Finance, in respect of a calendar year, in relation to the major investment project, were revoked in the particular year.

If an amount, in this paragraph and in the fourth paragraph referred to as the “increased amount”, in respect of which the person could claim a deduction under a particular provision of this Act in computing the person’s taxable income or tax payable under Part I, or in computing the person’s paid-up capital or tax payable under Part IV, for a preceding taxation year referred to in subparagraph a or b of the first paragraph, in this paragraph and in the fourth paragraph referred to as the “computation year”, for the purpose of determining the person’s notional tax or notional tax on capital, as the case may be, for the computation year, is greater than the amount, in this paragraph and in the fourth paragraph referred to as the “deducted amount”, that the person deducted under the particular provision for the purpose of determining the person’s real tax or real tax on capital, as the case may be, for the computation year, the increased amount rather than the deducted amount may be taken into account, for the purpose of determining the person’s notional tax or notional tax on capital, as the case may be, for the computation year, if

(a)  the person so requests in writing to the Minister; and

(b)  it may reasonably be considered that the amount by which the increased amount exceeds the deducted amount has not been deducted under the particular provision or another provision of this Act for the purpose of determining the person’s tax payable under Part I or the person’s tax payable under Part IV for any other taxation year, nor for the purpose of determining a tax of the person for any taxation year that is similar in nature to the person’s notional tax or notional tax on capital and is provided for in another portion of this Act.

If the third paragraph applies, the amount by which the increased amount exceeds the deducted amount is deemed,

(a)  for the purpose of determining the person’s notional tax for any taxation year subsequent to the computation year and for the application of Part I to the particular taxation year and to any subsequent taxation year, to have been deducted under the particular provision in computing the person’s taxable income or tax payable under Part I for the computation year; or

(b)  for the purpose of determining the person’s notional tax on capital for any taxation year subsequent to the computation year, for the application of Part IV to the particular taxation year and to any subsequent taxation year and for the application of Parts VI.1.1 and VI.2 to any taxation year subsequent to the computation year, to have been deducted under the particular provision in computing the person’s paid-up capital or tax payable under Part IV for the computation year.

2002, c. 9, s. 139; 2002, c. 40, s. 326; 2006, c. 36, s. 268.

2006-03-01

1175.26. Where a qualification certificate issued by the Minister of Finance, in relation to a major investment project, in respect of a calendar year is revoked in a particular taxation year of a person and, in relation to the major investment project, that person deducted an amount in computing the person’s taxable income under section 737.18.17, or in computing the person’s paid-up capital under section 1138.2.2 or 1141.8, reduced the person’s tax payable under Part VI pursuant to section 1170.1, or under Part VI.1 pursuant to section 1175.4.1, or paid or is deemed to have paid wages or another amount in respect of which no contribution was payable under the Act respecting the Régie de l’assurance maladie du Québec (chapter R-5) because of subparagraph d of the seventh paragraph of section 34 of that Act, the person shall pay for the particular taxation year a tax equal to the aggregate of

(a)  the aggregate of all amounts each of which is the amount by which the tax payable by the person under Part I for a taxation year preceding the particular year, that would have been determined by the Minister pursuant to section 1005 if the Minister had taken the revocation into account, exceeds the person’s tax payable under that Part determined by the Minister pursuant to that section for that preceding year;

(b)   the aggregate of all amounts each of which is the amount by which the tax payable by the person under Part IV, VI or VI.1, for a taxation year preceding the particular year or a 12-month period ending in a preceding taxation year, as the case may be, that would have been determined by the Minister pursuant to section 1005 if the Minister had taken the revocation into account, exceeds the person’s tax payable under that Part determined by the Minister pursuant to that section for that preceding year or that 12-month period; and

(c)  the amount by which the amount of contribution payable by the person, taking the revocation into account, under section 34 of the Act respecting the Régie de l’assurance maladie du Québec, in respect of the wages or amounts paid or deemed to be paid in the calendar year, exceeds the amount of the contribution payable by the person, but for the revocation, under that section 34 in respect of those wages or amounts, except to the extent that that excess amount has become otherwise payable by the person.

Similarly, a person shall pay, for a particular taxation year, where the initial qualification certificate issued or deemed to be issued by the Minister of Finance, in respect of a major investment project, is revoked at any time in the particular year, a tax equal to the aggregate of all amounts each of which is the tax that would be payable by that person, under the first paragraph, for the particular year, if each qualification certificate valid at that time, issued by the Minister of Finance, in respect of a calendar year, in relation to the major investment project, were revoked in the particular year.

2002, c. 9, s. 139; 2002, c. 40, s. 326.