I-3 - Taxation Act

Section 1029.8.36.166.5 Disposition versions

2012-05-09

1029.8.36.166.5. (Repealed).

2003, c. 9, s. 340; 2012, c. 8, s. 228.

2006-03-01

1029.8.36.166.5. The amount to which the definition of “expenditure in respect of the eligible transaction management system” in section 1029.8.36.166.1 refers in respect of a corporation for a taxation year is equal to the aggregate of all amounts each of which is an expenditure that is reasonable in the circumstances and that relates to the acquisition or leasing of property that is a component of an eligible transaction management system and satisfies the conditions set out in the second paragraph, and each of which is

(a)  expenses incurred by the corporation in the year but in the period between 1 November 2001 and 1 January 2004, for the acquisition of such property in connection with the carrying out of an eligible activity of the corporation engaged in by the corporation in that period, and that are included in the capital cost of the property;

(b)  expenses paid by the corporation in the year for the leasing of such property that is electronic communications equipment or software, if

i.  the lease contract for the property is entered into after 1 November 2001 and before 1 January 2004,

ii.  the expenses are paid in respect of the two-year period following the beginning of the lease period for the property in relation to an eligible activity of the corporation engaged in by the corporation in the two-year period, and

iii.  the expenses are deductible in computing the income of the corporation under this Part; or

(c)  expenses or a royalty paid by the corporation in the year for the leasing of such property that is a software user licence or a dedicated electronic connection, if

i.  the expenses or the royalty are paid in respect of the lease period of the property that is between 1 November 2001 and 1 January 2004 in relation to an eligible activity of the corporation engaged in by the corporation in that period, and

ii.  the expenses or the royalty are deductible in computing the income of the corporation under this Part.

The conditions to which the first paragraph refers in respect of a property are the following:

(a)  before being acquired or leased by the corporation, the property that is electronic communications equipment or software has not been used for any purpose whatever or acquired for use or lease for any purpose whatever, except if the property is electronic communications equipment that the corporation acquired or leased from the National Association of Securities Dealers or any of its controlled subsidiaries;

(b)  within reasonable time after being acquired or leased, the property begins to be used in connection with the carrying out of an eligible activity of the corporation;

(c)  the property is used exclusively or almost exclusively in connection with the carrying out of an eligible activity of the corporation;

(d)  in the case of property that is electronic communications equipment or software that the corporation acquired or leased, the property is installed at an establishment of the corporation situated in Québec where the corporation engages in an eligible activity; and

(e)  in the case of property acquired by the corporation, the property is maintained in an establishment of the corporation situated in Québec where the corporation engages in an eligible activity, for a minimum period of two years after being installed.

2003, c. 9, s. 340.