I-3 - Taxation Act

Section 737.22.0.2.3 Disposition versions

2006-03-01

737.22.0.2.3. For the purposes of this Title, the contract resulting from the renewal, after 12 June 2003, of an employment contract referred to in the definition of “foreign specialist” in the first paragraph of section 737.22.0.1 and in this section referred to as the “original contract”, is deemed not to be an employment contract separate from the original contract.

The rule set out in the first paragraph applies, with the necessary modifications, to a new employment contract that is entered into after 12 June 2003 with another eligible employer, who is deemed not to be an employer separate from the eligible employer, in this section referred to as the “first employer”, who entered into the original contract, provided that

(a)  the other eligible employer is a corporation described in the third paragraph;

(b)  the other eligible employer meets any of the following conditions:

i.  the other eligible employer controls directly or indirectly the first employer,

ii.  the other eligible employer is, directly or indirectly, a controlled subsidiary of the first employer, or

iii.  as a result of a transaction referred to in section 518 or 566, the other eligible employer continues to carry on the business of the first employer in the course of which the individual who entered into the original contract performed the individual’s duties as a foreign specialist; and

(c)  it may reasonably be considered that, but for the change of employer, the individual who entered into the original contract would have continued to be a foreign specialist working for the first employer until the time when the individual took up employment, as an employee, with the other eligible employer.

The corporation to which subparagraph a of the second paragraph refers is

(a)  if the first employer is a corporation described in paragraph a of the definition of “eligible employer” in the first paragraph of section 737.22.0.1, a corporation described in subparagraph i or ii of paragraph a of section 771.12;

(b)  if the first employer is a corporation described in paragraph d or f of the definition of “eligible employer” in the first paragraph of section 737.22.0.1, any of the following corporations:

i.  where the new employment contract is entered into between 12 June 2003 and 31 March 2004, a corporation described in that paragraph d or f, or

ii.  where the new employment contract is entered into after 30 March 2004, a corporation described in that paragraph d; or

(c)  if the first employer is a corporation referred to in any of paragraphs e, g, h, i and j of the definition of “eligible employer” in the first paragraph of section 737.22.0.1, a corporation described in that paragraph.

The first paragraph does not apply in respect of a contract that is deemed to have ended under the first or second paragraph of section 737.22.0.2.2.

2004, c. 21, s. 177; 2005, c. 23, s. 90.