I-3 - Taxation Act

Section 766.3.2 Disposition versions

2015-10-21

766.3.2. If an individual is resident in Québec at the end of a particular taxation year and is the beneficiary of a covered benefit attributable to a preceding taxation year, the individual is required to add to the individual’s tax otherwise payable, for the particular year, the amount determined by the formula

A – B + C + D + E – F.

In the formula in the first paragraph,

(a)  A is the tax that would have been payable by the individual under this Part for the preceding year if the covered benefit attributable to the preceding year had been determined in that preceding year;

(b)  B is the tax payable by the individual under this Part for that preceding year;

(c)  C is the amount determined without reference to section 7.5 by the formula

G – H;

(d)  D is the aggregate of

i.  if the preceding year is subsequent to 2009, the amount by which the amount that a person, other than the individual, deducted under section 776.41.14 in computing the person’s tax otherwise payable for that preceding year exceeds the amount that the person could have deducted under section 776.41.14 in computing the person’s tax otherwise payable for that preceding year, if the covered benefit attributable to the preceding year had been determined in that year, and

ii.  the amount by which the amount that a person, other than the individual, deducted under section 776.41.21 in computing the person’s tax otherwise payable for that preceding year exceeds the amount that the person could have deducted under section 776.41.21 in computing the person’s tax otherwise payable for that preceding year, if the covered benefit attributable to the preceding year had been determined in that year;

(e)  E is the aggregate of all amounts each of which is an amount deemed to have been paid to the Minister under section 1029.8.50.3 on account of the individual’s tax payable under this Part for a preceding taxation year because of the application of this section in respect of a covered benefit attributable to the preceding year; and

(f)  F is the aggregate of all amounts each of which is an amount that the individual is required to add to the individual’s tax otherwise payable under this Part for a preceding taxation year because of the application of this section in respect of a covered benefit attributable to the preceding year.

In the formula in subparagraph c of the second paragraph:

(a)  G is the amount deducted by the individual’s eligible spouse for the preceding taxation year under section 776.78, as it read before being repealed, or section 776.41.5 in computing the tax otherwise payable for that preceding year; and

(b)  H is the amount that could have been deducted by the individual’s eligible spouse for the preceding taxation year under section 776.78, as it read before being repealed, or section 776.41.5 in computing the tax otherwise payable for that preceding year, computed without reference to section 776.41.5, if the covered benefit attributable to the preceding year had been determined in that year, without however exceeding the tax otherwise payable for that preceding year.

In subparagraphs c and d of the second paragraph, the individual’s eligible spouse for the preceding taxation year means a person who would be the individual’s eligible spouse for that year, within the meaning of sections 776.41.1 to 776.41.4, if the portion of section 776.41.1 before paragraph a were read as if “for a taxation year” were replaced by “for a preceding taxation year”.

For the purposes of this section, if an individual dies or ceases to be resident in Canada in the particular taxation year, the last day of that taxation year is the day on which the individual died or the last day on which the individual was resident in Canada.

For the purpose of applying this Part to any taxation year,

(a)  an amount that is not otherwise deducted in computing an individual’s taxable income or tax payable under this Part for a taxation year (in this subparagraph referred to as the “preceding year”), but that is deducted for the purpose of establishing the amount determined in respect of the individual under subparagraph a or d of the second paragraph or subparagraph b of the third paragraph for the preceding year, is deemed, for the application of this Part to any taxation year, to have been deducted in computing the individual’s taxable income or tax payable, as the case may be, under this Part for the preceding year, including when establishing the amount determined in respect of the individual under subparagraph a or d of the second paragraph or subparagraph b of the third paragraph or under any of subparagraphs a, c and d of the fourth paragraph of section 766.2 for another taxation year;

(b)  an amount that is otherwise deducted in computing an individual’s taxable income or tax payable under this Part for a taxation year subsequent to a particular taxation year may not be taken into account for the purpose of establishing the amount determined in respect of the individual under subparagraph a or d of the second paragraph or subparagraph b of the third paragraph for the particular taxation year;

(c)  an amount that, under subparagraph a of the sixth paragraph of section 766.2, is deemed to be deducted in computing an individual’s taxable income or tax payable under this Part for a particular taxation year, because it is deducted in that computation for the purpose of establishing the amount determined in respect of the individual under any of subparagraphs a, c and d of the fourth paragraph of section 766.2 for the particular year, may not be taken into account for the purpose of establishing the amount determined in respect of the individual under subparagraph a or d of the second paragraph or subparagraph b of the third paragraph for the particular year; and

(d)  an amount that is otherwise deducted in computing an individual’s taxable income or tax payable under this Part for a particular taxation year, but that is not deducted for the purpose of establishing the amount determined in respect of the individual under subparagraph a or d of the second paragraph or subparagraph b of the third paragraph for the particular year, is deemed, for the application of this Part to any other taxation year, not to have been deducted in computing the individual’s taxable income or tax payable, as the case may be, under this Part for the particular year.

This section does not apply in respect of an individual’s separate fiscal return filed under the second paragraph of section 429 or section 681 or 1003.

2015, c. 21, s. 306.