I-3 - Taxation Act

Section 726.4.7.4 Disposition versions

2006-03-01

726.4.7.4. For the purposes of section 726.4.7.1, the financial commitment of an individual or partnership, in this section referred to as an “investor”, to a certified Québec film means, subject to the second paragraph, the capital cost of the film to the investor.

Where, in respect of the film, a person or partnership has obtained, is entitled to obtain or can reasonably expect to obtain a benefit or advantage, whether by way of reimbursement, compensation, revenue guarantee or proceeds of disposition of a property exceeding the fair market value of the property, or in any other form or manner whatever, and it may reasonably be considered that the direct or indirect effect of such benefit or advantage is to compensate or indemnify the investor or, as the case may be, one of its members, or to otherwise benefit, in any manner whatever, the investor or, as the case may be, one of its members, the investor’s financial commitment to the film means the amount by which the capital cost of the film to the investor exceeds the amount of the benefit or advantage obtained by the person or partnership, or established or stated,

(a)  where the investor is an individual, not later than on the closing date of the investment in respect of the financing necessary for the production of the film or, failing that, on the date on which the investor irrevocably acquired the film, or

(b)  where the investor is a partnership, not later than the later of the date that would be determined in respect of the film under paragraph a if the investor were an individual and the dates on which, in respect of the film, an individual referred to in section 726.4.7 irrevocably acquired his partnership interest or made an additional contribution of capital to the partnership.

1991, c. 8, s. 17; 1997, c. 3, s. 71.