I-3 - Taxation Act

Section 737.18.19 Disposition versions

2022-06-08

737.18.19. (Repealed).

2002, c. 40, s. 60; 2022, c. 23, s. 53.

2006-03-01

737.18.19. For the purposes of paragraph b of the definition of “qualified corporation” in the first paragraph of section 737.18.18, the activities of a corporation for a taxation year consist mainly in carrying on a manufacturing or processing business where the proportion represented by either of the following formulas is greater than 50%:

(a)  A / B;

(b)  C / D.

In the formulas provided for in the first paragraph,

(a)  A is the aggregate of all amounts each of which is the proportion of the qualified salary or wages of the corporation for the year, in respect of an employee of the corporation for the year whose duties relate to an eligible activity of the corporation for the year, that the working time spent by the employee on eligible activities of the corporation for the year is of the aggregate of the employee’s working time for the year as an employee of the corporation;

(b)  B is the qualified total payroll of the corporation for the year;

(c)  C is the aggregate of all amounts each of which is the proportion of the eligible cost of a qualified property to the corporation for the year that is used directly to carry on an eligible activity of the corporation in the year, that the direct use of the qualified property to carry on an eligible activity of the corporation for the year is of the use of the qualified property to carry on the aggregate of the activities of the corporation for the year; and

(d)  D is the aggregate of all amounts each of which is the eligible cost of a qualified property to the corporation for the year.

For the purposes of subparagraph a of the second paragraph, an employee who spends 90% or more of working time on an eligible activity of the corporation is deemed to spend all working time thereon.

2002, c. 40, s. 60.