I-3 - Taxation Act

Section 1029.8.36.0.55 Disposition versions

2021-06-04

1029.8.36.0.55. (Repealed).

2000, c. 39, s. 176; 2001, c. 51, s. 162; 2003, c. 9, s. 255; 2004, c. 21, s. 342; 2005, c. 23, s. 180; 2021, c. 18, s. 121.

2006-03-01

1029.8.36.0.55. In this division,

“eligible contract” for a taxation year of a corporation that, in the year, carries on a recognized business or for a fiscal period of a partnership that, in the fiscal period, carries on such a business means a contract entered into between the corporation or partnership and a customs broker who, at the time the contract is entered into, is dealing at arm’s length with the corporation or a member of the partnership and in respect of which a certificate is issued to the corporation for the year or to the partnership for the fiscal period, by Investissement Québec, certifying that the services shown on the certificate and which have been rendered to the corporation in the year or to the partnership in the fiscal period, by the customs broker under the contract, constitute customs brokerage services rendered in the course of the activities shown on the certificate issued to the corporation or partnership in respect of the recognized business and carried on in the international trade zone by the corporation or partnership;

“eligible customs brokerage services” for a taxation year of a corporation that, in the year, carries on a recognized business or for a fiscal period of a partnership that, in the fiscal period, carries on such a business, means customs brokerage services that

(a)  are rendered to the corporation in the year or the partnership in the fiscal period, under a contract that is an eligible contract for the year or fiscal period in relation to the recognized business; and

(b)  are covered by the certificate issued to the corporation for the year or the partnership for the fiscal period, in respect of the contract mentioned in paragraph a;

“excluded corporation” has the meaning assigned by the first paragraph of section 1029.8.36.0.38;

“international trade zone” has the meaning assigned by the first paragraph of section 1029.8.36.0.38;

“qualified brokerage expenditure” incurred by a corporation in a taxation year or by a partnership in a fiscal period, in connection with the carrying on of a recognized business, means the lesser of

(a)  the amount determined for the year or fiscal period pursuant to section 1029.8.36.0.56 in relation to the recognized business; and

(b)  any of the following amounts:

i.  where the valid certificate issued to the corporation or partnership in respect of the recognized business became effective or is deemed to have become effective, in accordance with the third paragraph, before 1 January 2001, the amount by which

(1)  the aggregate of all amounts each of which is the amount of fees incurred by the corporation or partnership in the year or fiscal period, but after 9 March 1999 and before 1 January 2011, for services that qualify as eligible customs brokerage services, for the year or fiscal period, in relation to the recognized business, to the extent that that amount is paid, exceeds

(2)  the aggregate of all amounts each of which is an amount of government assistance or non-government assistance attributable to fees referred to in subparagraph 1, that the corporation or partnership has received, is entitled to receive or may reasonably expect to receive, on or before, in the case of the corporation, the corporation’s filing-due date for the year and, in the case of the partnership, the day that is six months after the end of the fiscal period,

ii.  where the valid certificate issued to the corporation or partnership in respect of the recognized business became effective or is deemed to have become effective, in accordance with the third paragraph, after 31 December 2000 and before 1 January 2004, the amount by which

(1)  the aggregate of all amounts each of which is the amount of fees incurred by the corporation or partnership in the year or fiscal period, but on or before the day that is ten years after the effective date of that certificate, for services that qualify as eligible customs brokerage services, for the year or fiscal period, in relation to the recognized business, to the extent that that amount is paid, exceeds

(2)  the aggregate of all amounts each of which is an amount of government assistance or non-government assistance attributable to fees referred to in subparagraph 1, that the corporation or partnership has received, is entitled to receive or may reasonably expect to receive, on or before, in the case of the corporation, the corporation’s filing-due date for the year and, in the case of the partnership, the day that is six months after the end of the fiscal period, and

iii.  where the valid certificate issued to the corporation or partnership in respect of the recognized business became effective or is deemed to have become effective, in accordance with the third paragraph, after 31 December 2003, the amount by which

(1)  the aggregate of all amounts each of which is the amount of fees incurred by the corporation or partnership in the year or fiscal period, but before 1 January 2014, for services that qualify as eligible customs brokerage services, for the year or fiscal period, in relation to the recognized business, to the extent that that amount is paid, exceeds

(2)  the aggregate of all amounts each of which is an amount of government assistance or non-government assistance attributable to fees referred to in subparagraph 1, that the corporation or partnership has received, is entitled to receive or may reasonably expect to receive, on or before, in the case of the corporation, the corporation’s filing-due date for the year and, in the case of the partnership, the day that is six months after the end of the fiscal period;

“recognized business” has the meaning assigned by the first paragraph of section 1029.8.36.0.38 and by section 1029.8.36.0.38.1.

For the purposes of the definition of “eligible contract” in the first paragraph, where the activities of a business in respect of which section 1029.8.36.0.38.1 applies are carried on in Québec but outside the international trade zone by a corporation in a taxation year, or by a partnership in a fiscal period, the business activities shown on the certificate referred to in paragraph a of section 1029.8.36.0.38.1 that are carried on in Québec but outside the international trade zone are deemed to be activities shown on the certificate issued to the corporation or partnership in respect of the recognized business and carried on in the international trade zone by the corporation or partnership.

For the purposes of the first paragraph, where, at a particular time in a taxation year or fiscal period, a corporation or partnership, in this paragraph referred to as the “transferee entity”, carries on a business in respect of which Investissement Québec issued a qualification certificate, and the business, according to Investissement Québec, is the continuation of a recognized business or part of a recognized business carried on before that time by a corporation or partnership, in this paragraph referred to as the “transferor entity”, the effective date of the qualification certificate issued to the transferee entity, in relation to that recognized business, is deemed to be the same as the effective date of the qualification certificate issued to the transferor entity, in relation to the recognized business or part of recognized business.

2000, c. 39, s. 176; 2001, c. 51, s. 162; 2003, c. 9, s. 255; 2004, c. 21, s. 342; 2005, c. 23, s. 180.