I-3 - Taxation Act

Section 1029.8.36.115 Disposition versions

2010-04-20

1029.8.36.115. (Repealed).

1999, c. 86, s. 85; 2001, c. 51, s. 228; 2002, c. 40, s. 200; 2005, c. 23, s. 217; 2010, c. 5, s. 158.

2006-03-01

1029.8.36.115. In this division,

“eligibility period” applicable to an individual in relation to a corporation or partnership, for a taxation year or fiscal period, means a part of the calendar year ending in the taxation year or the fiscal period, for which a certificate, which is valid, has been issued to the corporation or partnership in respect of the individual pursuant to section 22 of the Act respecting international financial centres (chapter C-8.3);

“eligible specialist”, in respect of a calendar year, of a corporation or of a partnership operating an international financial centre means an employee of the corporation or of the partnership in whose respect a valid certificate has been issued to the corporation or partnership in accordance with section 22 of the Act respecting international financial centres for all or part of the calendar year, and whose starting date of employment with the corporation or partnership specified in the qualification certificate mentioned in that section is before 12 June 2003;

“qualified wages” paid to an individual by a corporation and attributed to a taxation year, or by a partnership and attributed to a fiscal period, means, subject to the second paragraph, the lesser of

(a)  the amount obtained by multiplying $75,000 by the proportion that the number of weeks ending in the eligibility period applicable to the individual for the taxation year in relation to the corporation, or for the fiscal period in relation to the partnership, and for which the corporation or partnership paid an amount to the individual as wages, is of 52; and

(b)  the amount by which

i.  the aggregate of all amounts each of which is an amount of wages paid by the corporation or partnership to the individual for a week ending in the eligibility period applicable to the individual for the year in relation to the corporation, or for the fiscal period in relation to the partnership, exceeds

ii.  the aggregate of all amounts each of which is an amount of government assistance or non-government assistance, attributable to such wages, 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, on or before the day that is six months after the end of its fiscal period;

“tax-exempt taxpayer” means

(a)  a person who is exempt from tax under Book VIII, other than an insurer referred to in paragraph k of section 998 not so exempt from tax on the totality of its taxable income by reason of section 999.0.1;

(b)  a corporation that would be exempt from tax under section 985 but for section 192; or

(c)  a trust under which one of the capital or income beneficiaries is a person described in paragraph a or b;

“wages” means the income computed under Chapters I and II of Title II of Book III.

For the purposes of the definition of “qualified wages” in the first paragraph, a week ending in the eligibility period applicable to the individual for a taxation year in relation to a corporation, or for a fiscal period in relation to a partnership, is deemed not to be such a week where

(a)  the corporation or partnership is not, at any time during that week, a corporation or partnership that operates an international financial centre;

(b)  the individual

i.  is a specified shareholder of the corporation at any time during that week, or

ii.  is, at any time during that week, a member of the partnership whose share, for the fiscal period, of the partnership’s income or loss is not less than 10%, or is not dealing at arm’s length, at any time during that week, with such a member or with any member of a group of members of the partnership the total of whose shares, for the fiscal period, of the partnership’s income or loss is not less than 10%;

(c)  the amount paid by the corporation or partnership to the individual as wages for that week represents less than 26 working hours; and

(d)  the individual is not entitled to the deduction provided for in section 71 of the Act respecting international financial centres in respect of all or part of the wages paid by the corporation or partnership for that week.

1999, c. 86, s. 85; 2001, c. 51, s. 228; 2002, c. 40, s. 200; 2005, c. 23, s. 217.