I-3 - Taxation Act

Section 1029.8.36.0.21 Disposition versions

2006-03-01

1029.8.36.0.21. Where a corporation carries on or may carry on its business in a new economy centre and a taxation year of the corporation is, in whole or in part, within a particular period that is between 9 March 1999 and 16 June 1999, for the purpose of determining the amount that the corporation is deemed to have paid to the Minister, in accordance with section 1029.8.36.0.19 or 1029.8.36.0.20, in respect of the qualified wages paid by the corporation to an eligible employee in that taxation year, each of the rates of 40% referred to in the first paragraph of section 1029.8.36.0.19 or 1029.8.36.0.20, as the case may be, and in subparagraph a of the first paragraph of section 1029.8.36.0.23, shall be replaced by a rate of 60% in respect of the portion of the qualified wages that may reasonably be considered to be attributable to wages paid to the eligible employee in the portion of that taxation year within the particular period.

Notwithstanding the first paragraph, where the qualified wages paid by the corporation to an eligible employee, in a taxation year of the corporation all or part of which is within the particular period, are an amount established in accordance with subparagraph a or b of the first paragraph of section 1029.8.36.0.18, the following rules apply for the purpose of determining the amount that the corporation is deemed to have paid to the Minister, in accordance with section 1029.8.36.0.19 or 1029.8.36.0.20, in respect of the qualified wages:

(a)  each of the rates of 40% referred to in the first paragraph of section 1029.8.36.0.19 or 1029.8.36.0.20, as the case may be, and in subparagraph a of the first paragraph of section 1029.8.36.0.23, is replaced by a rate of 60% in respect of the lesser of the qualified wages paid by the corporation to the eligible employee in the taxation year and the portion of the qualified wages that could reasonably be considered to be attributable to wages paid to the eligible employee in the portion of that taxation year within the particular period, if the definition of “qualified wages” in the first paragraph of section 1029.8.36.0.17 were read without reference to “the lesser of” in the portion before paragraph a and to paragraph a; and

(b)  each of the rates of 40% referred to in the first paragraph of section 1029.8.36.0.19 or 1029.8.36.0.20, as the case may be, and in subparagraph a of the first paragraph of section 1029.8.36.0.23, applies only in respect of the amount by which the qualified wages paid by the corporation to the eligible employee in the taxation year exceed the amount established in accordance with subparagraph a in respect of the qualified wages.

2000, c. 39, s. 176; 2003, c. 9, s. 226.