I-3 - Taxation Act

Section 725.1.3 Disposition versions

2022-06-08

725.1.3. In this Title,

“consolidated financial statements” has the meaning assigned by subsection 1 of section 233.8 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.));

“qualified corporation” for a particular calendar year means a corporation that meets the following conditions:

(a)  in the particular calendar year, the corporation operates a business in Québec and has an establishment in Québec;

(b)  the assets shown in its financial statements submitted to the shareholders or, if such financial statements have not been prepared, or have not been prepared in accordance with generally accepted accounting principles, that would be shown had such financial statements been prepared in accordance with generally accepted accounting principles, for its taxation year that ended in the calendar year that precedes the particular calendar year or, if the corporation is in its first fiscal period, at the beginning of its first fiscal period, were less than $50,000,000; and

(c)  an amount is deemed, under any of Divisions II, II.1, II.2.1, II.3 and II.3.0.1 of Chapter III.1 of Title III of Book IX, to have been paid to the Minister by the qualified corporation for its taxation year that ended in the particular calendar year or for any of its three preceding taxation years;

“qualifying person” has the meaning assigned by section 47.18;

“security” has the meaning assigned by section 47.18;

“specified corporation” for a particular calendar year means a corporation in respect of which the aggregate of all amounts each of which is wages paid or deemed to be paid by the corporation in the year, for the purpose of determining the amount payable by the corporation for the year as the contribution provided for in section 34 of the Act respecting the Régie de l’assurance maladie du Québec (chapter R-5), is at least $10,000,000.

“specified person”, at a particular time, means a qualifying person that meets the following conditions:

(a)  it is not a Canadian-controlled private corporation;

(b)  where it is a member of a group that annually prepares consolidated financial statements, the total consolidated group revenue — reflected in the group’s last consolidated financial statements presented to the shareholders or unitholders of the member of the group that would be the ultimate parent entity, within the meaning of subsection 1 of section 233.8 of the Income Tax Act, of the group if the group were a multinational enterprise group, within the meaning of that subsection — before that time exceeds $500,000,000; and

(c)  where paragraph b does not apply, it has gross revenue in excess of $500,000,000 based on

i.  the amounts reflected in the qualifying person’s financial statements presented to the qualifying person’s shareholders or unitholders for the qualifying person’s last fiscal period that ended before that time,

ii.  where subparagraph i does not apply, the amounts reflected in the qualifying person’s financial statements presented to the qualifying person’s shareholders or unitholders for the qualifying person’s last fiscal period that ended before the end of the fiscal period referred to in subparagraph i, or

iii.  where subparagraph i does not apply and if no financial statements are presented as provided for in subparagraph ii, the amounts that would have been reflected in the qualifying person’s financial statements for the qualifying person’s last fiscal period that ended before that time, if such statements had been prepared in accordance with generally accepted accounting principles;

“vesting year” in respect of a security to be acquired under an agreement means

(a)  where the agreement specifies the calendar year in which a taxpayer’s right to acquire the security first becomes exercisable (otherwise than because of an event that is not reasonably foreseeable at the time the agreement is entered into), that calendar year; or

(b)  in any other case, the calendar year in which the right to acquire the security would become exercisable if the agreement had specified that all identical rights to acquire securities become exercisable on a pro rata basis over the period that

i.  begins on the day that the agreement was entered into, and;

ii.  ends on the day that is 60 months after the day the agreement is entered into or, if it is earlier, on the last day that the right to acquire the security could become exercisable under the agreement.

2009, c. 15, s. 108; 2019, c. 14, s. 186; 2022, c. 23, s. 40.

2019-06-19

725.1.3. In this Title,

“qualified corporation” for a particular calendar year means a corporation that meets the following conditions:

(a)  in the particular calendar year, the corporation operates a business in Québec and has an establishment in Québec;

(b)  the assets shown in its financial statements submitted to the shareholders or, if such financial statements have not been prepared, or have not been prepared in accordance with generally accepted accounting principles, that would be shown had such financial statements been prepared in accordance with generally accepted accounting principles, for its taxation year that ended in the calendar year that precedes the particular calendar year or, if the corporation is in its first fiscal period, at the beginning of its first fiscal period, were less than $50,000,000; and

(c)  an amount is deemed, under any of Divisions II, II.1, II.2.1, II.3 and II.3.0.1 of Chapter III.1 of Title III of Book IX, to have been paid to the Minister by the qualified corporation for its taxation year that ended in the particular calendar year or for any of its three preceding taxation years;

“qualifying person” has the meaning assigned by section 47.18;

“security” has the meaning assigned by section 47.18;

“specified corporation” for a particular calendar year means a corporation in respect of which the aggregate of all amounts each of which is wages paid or deemed to be paid by the corporation in the year, for the purpose of determining the amount payable by the corporation for the year as the contribution provided for in section 34 of the Act respecting the Régie de l’assurance maladie du Québec (chapter R-5), is at least $10,000,000.

2009, c. 15, s. 108; 2019, c. 14, s. 186.

2009-06-04

725.1.3. In this Title,

“qualified corporation” for a particular calendar year means a corporation that meets the following conditions:

(a)  in the particular calendar year, the corporation operates a business in Québec and has an establishment in Québec;

(b)  the assets shown in its financial statements submitted to the shareholders or, if such financial statements have not been prepared, or have not been prepared in accordance with generally accepted accounting principles, that would be shown had such financial statements been prepared in accordance with generally accepted accounting principles, for its taxation year that ended in the calendar year that precedes the particular calendar year or, if the corporation is in its first fiscal period, at the beginning of its first fiscal period, were less than $50,000,000; and

(c)  an amount is deemed, under any of Divisions II, II.1, II.2.1, II.3 and II.3.0.1 of Chapter III.1 of Title III of Book IX, to have been paid to the Minister by the qualified corporation for its taxation year that ended in the particular calendar year or for any of its three preceding taxation years;

“qualifying person” has the meaning assigned by section 47.18;

“security” has the meaning assigned by section 47.18.

2009, c. 15, s. 108.