I-3 - Taxation Act

Section 1029.8.36.0.18.2 Disposition versions

2007-11-07

1029.8.36.0.18.2. If, following an acquisition of control referred to in subparagraph f of the first paragraph of section 771.13 or an election made under subparagraph g of that paragraph, a corporation ceases to be an exempt corporation at the beginning of the taxation year that follows the taxation year in which the acquisition of control occurs or the election becomes effective, the following rules apply, as the case may be:

(a)  for the purposes of subparagraph iv of paragraph b of the definition of “specified corporation” in the first paragraph of section 1029.8.36.0.17, the corporation is deemed to be a specified corporation at the time of the acquisition of control;

(b)  if the definition of “specified corporation” in the first paragraph of section 1029.8.36.0.17 applies to the corporation for the taxation year in which the acquisition of control occurs or the election becomes effective, it is to be read without reference to its subparagraph iii of paragraph b;

(c)  for the purposes of paragraph a of the definition of “eligibility period” in the first paragraph of section 1029.8.36.0.17, the day on which the acquisition of control occurs or the election becomes effective is deemed to be the day on which the corporation ceases to be an exempt corporation; and

(d)  if the acquisition of control occurs or the election becomes effective before the end of the five-year period described in paragraph b of the definition of “eligibility period” in the first paragraph of section 1029.8.36.0.17, or before the end of the three-year period described in paragraph c of that definition, the eligibility period ends immediately before the acquisition of control occurs or on the day before that on which the election becomes effective, as the case may be.

If, after 30 March 2004, Investissement Québec issues a certificate, referred to in paragraph c of the definition of “specified corporation” in the first paragraph of section 1029.8.36.0.17, for a taxation year, to a corporation that carries on or may carry on its business in a biotechnology development centre, no reference is to be made to subparagraph d of the first paragraph in computing the amount that the corporation is deemed to have paid to the Minister for that taxation year under section 1029.8.36.0.25 or 1029.8.36.0.25.1.

2007, c. 12, s. 176.