I-3 - Taxation Act

Section 1029.8.36.72.92.1 Disposition versions

2021-06-04

1029.8.36.72.92.1. (Repealed).

2009, c. 5, s. 454; 2021, c. 18, s. 128.

2009-05-15

1029.8.36.72.92.1. Subject to sections 1029.8.36.72.90 and 1029.8.36.72.91, if, at a particular time in a particular calendar year that ends in a particular taxation year or in a preceding taxation year, the activities carried on by a person or partnership (in this section referred to as the “vendor”) in relation to a recognized business or a business the activities of which are described in any of paragraphs a to e of the definition of “recognized business” in the first paragraph of section 1029.8.36.72.83, diminish or cease and it may reasonably be considered that, as a result, another person or partnership (in this section referred to as the “purchaser”) that is associated with the vendor at the particular time, begins, after the particular time, to carry on similar activities in the course of carrying on such a business, or increases, after the particular time, the scope of similar activities carried on in the course of carrying on such a business, the following rules apply for the purpose of determining the amount that a corporation is deemed to have paid to the Minister under this division for the particular taxation year, in relation to a particular recognized business:

(a)  if the particular recognized business is a business of the vendor,

i.  the aggregate of all amounts each of which is the salary or wages paid by the vendor to an employee in respect of a pay period, within the vendor’s base period in relation to the particular recognized business, for which the employee is an eligible employee, is deemed, for the purposes of subparagraph 2 of subparagraph i of subparagraph a of the first paragraph of section 1029.8.36.72.84, subparagraph 2 of subparagraph i of subparagraph a of the first paragraph of section 1029.8.36.72.85 and subparagraph ii of paragraph a of section 1029.8.36.72.86, to be equal to the amount by which that amount otherwise determined exceeds the amount determined by the formula

A × G,

ii.  the aggregate of all amounts each of which is the salary or wages paid by the vendor to an employee in respect of a pay period, within the particular calendar year, for which the employee is an eligible employee, in relation to the particular recognized business, is deemed, for the purposes of subparagraph i of subparagraph a of the first paragraph of section 1029.8.36.72.84, subparagraph i of subparagraph a of the first paragraph of section 1029.8.36.72.85 and paragraph a of section 1029.8.36.72.86, to be equal to the amount by which that amount otherwise determined exceeds the amount determined by the formula

B × G,

iii.  the base amount of the vendor, in relation to the particular recognized business, is deemed to be equal to the amount by which that amount otherwise determined exceeds the amount determined by the formula

C × G, and

iv.  the eligible amount of the vendor for the particular calendar year is deemed to be equal to the amount by which that amount otherwise determined exceeds the amount determined by the formula

D × G;

(b)  if the particular recognized business is a business of a corporation that is associated with the vendor at the end of the particular calendar year,

i.  the amount that is the aggregate referred to in subparagraph 2 of subparagraph ii of subparagraph a of the first paragraph of section 1029.8.36.72.85 or in subparagraph ii of paragraph c of section 1029.8.36.72.86, determined in respect of the vendor, is deemed to be equal to the amount by which that amount determined without reference to this subparagraph i exceeds the amount determined by the formula

E × G, and

ii.  the amount that is the second aggregate mentioned in the portion of subparagraph ii of subparagraph a of the first paragraph of section 1029.8.36.72.85 before subparagraph 1 or in the portion of paragraph c of section 1029.8.36.72.86 before subparagraph i, determined in respect of the vendor for the particular calendar year, is deemed to be equal to the amount by which that amount determined without reference to this subparagraph ii exceeds the amount determined by the formula

F × G;

(c)  if the particular recognized business is a business of the purchaser, the purchaser is deemed

i.  to have paid, for the purposes of subparagraph 2 of subparagraph i of subparagraph a of the first paragraph of section 1029.8.36.72.84, subparagraph 2 of subparagraph i of subparagraph a of the first paragraph of section 1029.8.36.72.85 or subparagraph ii of paragraph a of section 1029.8.36.72.86, as the case may be, to employees, in respect of a pay period, within the purchaser’s base period in relation to the particular recognized business, for which the employees are eligible employees, the amount determined by the formula

A × G,

ii.  to have paid, for the purposes of subparagraph i of subparagraph a of the first paragraph of section 1029.8.36.72.84, subparagraph i of subparagraph a of the first paragraph of section 1029.8.36.72.85 or paragraph a of section 1029.8.36.72.86, as the case may be, to employees, in respect of a pay period, within the particular calendar year, for which the employees are eligible employees, in relation to the particular recognized business, the amount determined by the formula

B × G,

iii.  to have a base amount, in relation to the particular recognized business, equal to the aggregate of

(1)  the purchaser’s base amount otherwise determined, in relation to the particular recognized business, and

(2)  the amount determined by the formula

C × G, and

iv.  to have an eligible amount for the particular calendar year equal to the aggregate of

(1)  the purchaser’s eligible amount otherwise determined for the particular calendar year, and

(2)  the amount determined by the formula

D × G; and

(d)  if the particular recognized business is a business of a corporation that is associated with the purchaser at the end of the particular calendar year,

i.  the amount that is the aggregate referred to in subparagraph 2 of subparagraph ii of subparagraph a of the first paragraph of section 1029.8.36.72.85 or in subparagraph ii of paragraph c of section 1029.8.36.72.86, determined in respect of the purchaser, is deemed to be equal to the aggregate of

(1)  the amount of that aggregate determined without reference to this subparagraph i, and

(2)  the amount determined by the formula

E × G, and

ii.  the amount that is the second aggregate mentioned in the portion of subparagraph ii of subparagraph a of the first paragraph of section 1029.8.36.72.85 before subparagraph 1 or in the portion of paragraph c of section 1029.8.36.72.86 before subparagraph i, determined in respect of the purchaser for the particular calendar year, is deemed to be equal to the aggregate of

(1)  the amount of that aggregate determined without reference to this subparagraph ii for the particular calendar year, and

(2)  the amount determined by the formula

F × G.

In the formulas in subparagraphs a to d of the first paragraph,

(a)  A is the aggregate of all amounts each of which is,

i.  for the purposes of subparagraph i of subparagraph a of the first paragraph, the salary or wages paid by the vendor to an employee in respect of a pay period, within the vendor’s base period in relation to the particular recognized business, for which the employee is an eligible employee, and

ii.  for the purposes of subparagraph i of subparagraph c of the first paragraph,

(1)  if the activities referred to in the first paragraph relate to a recognized business of the vendor, the salary or wages paid by the vendor to an employee in respect of a pay period, within the vendor’s base period in relation to the recognized business, for which the employee is an eligible employee, and

(2)  if the activities referred to in the first paragraph do not relate to a recognized business of the vendor but relate to a recognized business of the purchaser, the salary or wages paid by the vendor to an employee, other than an excluded employee of the vendor, in respect of a pay period, within the purchaser’s base period in relation to the recognized business, in which the employee reports for work at an establishment of the vendor situated in an eligible site and spends, when at work, at least 90% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in any of paragraphs a to e of the definition of “recognized business” in the first paragraph of section 1029.8.36.72.83, unless an amount is included, in respect of the employee, in computing an amount determined under this subparagraph ii in relation to another recognized business;

(b)  B is the aggregate of all amounts each of which is,

i.  for the purposes of subparagraph ii of subparagraph a of the first paragraph, the salary or wages paid by the vendor to an employee in respect of a pay period, within the particular calendar year, for which the employee is an eligible employee in relation to the particular recognized business, and

ii.  for the purposes of subparagraph ii of subparagraph c of the first paragraph,

(1)  if the activities referred to in the first paragraph relate to a recognized business of the vendor, the salary or wages paid by the vendor to an employee in respect of a pay period, within the particular calendar year, for which the employee is an eligible employee in relation to the recognized business, and

(2)  if the activities referred to in the first paragraph do not relate to a recognized business of the vendor but relate to a recognized business of the purchaser, the salary or wages paid by the vendor to an employee, other than an excluded employee of the vendor, in respect of a pay period, within the particular calendar year, in which the employee reports for work at an establishment of the vendor situated in an eligible site and spends, when at work, at least 90% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in any of paragraphs a to e of the definition of “recognized business” in the first paragraph of section 1029.8.36.72.83;

(c)  C is the aggregate of all amounts each of which is,

i.  for the purposes of subparagraph iii of subparagraph a of the first paragraph, the salary or wages paid by the vendor to an employee in the course of carrying on the particular recognized business, in respect of a pay period, within the vendor’s base period in relation to the particular recognized business, for which the employee is an eligible employee, or the salary or wages of an employee, other than an excluded employee of the vendor, paid by the vendor in the course of carrying on any given business in respect of a pay period, within the vendor’s base period in relation to the particular recognized business, in which the employee reports for work at an establishment of the vendor situated in Québec but outside an eligible site and spends, when at work, at least 90% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in any of paragraphs a to e of the definition of “recognized business” in the first paragraph of section 1029.8.36.72.83, unless an amount is included, in respect of the employee, in relation to the given business, in computing an amount determined under this subparagraph i in relation to another recognized business, and

ii.  for the purposes of subparagraph 2 of subparagraph iii of subparagraph c of the first paragraph,

(1)  if the activities referred to in the first paragraph relate to a recognized business of the vendor, the salary or wages paid by the vendor to an employee in the course of carrying on the recognized business, in respect of a pay period, within the vendor’s base period in relation to the recognized business, for which the employee is an eligible employee, or the salary or wages of an employee, other than an excluded employee of the vendor, paid by the vendor in the course of carrying on any given business in respect of a pay period, within the vendor’s base period in relation to the recognized business, in which the employee reports for work at an establishment of the vendor situated in Québec but outside an eligible site and spends, when at work, at least 90% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in any of paragraphs a to e of the definition of “recognized business” in the first paragraph of section 1029.8.36.72.83, unless an amount is included, in respect of the employee, in relation to the given business, in computing an amount determined under this subparagraph ii in relation to another recognized business, and

(2)  if the activities referred to in the first paragraph do not relate to a recognized business of the vendor but relate to a recognized business of the purchaser, the salary or wages of an employee, other than an excluded employee of the vendor, paid by the vendor in the course of carrying on any given business in respect of a pay period, within the purchaser’s base period in relation to the recognized business, in which the employee reports for work at an establishment of the vendor situated in Québec and spends, when at work, at least 90% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in any of paragraphs a to e of the definition of “recognized business” in the first paragraph of section 1029.8.36.72.83, unless an amount is included, in respect of the employee, in relation to the given business, in computing an amount determined under this subparagraph ii in relation to another recognized business;

(d)  D is the aggregate of all amounts each of which is,

i.  for the purposes of subparagraph iv of subparagraph a of the first paragraph, the salary or wages paid by the vendor to an employee in respect of a pay period, within the particular calendar year, for which the employee is an eligible employee, in relation to the particular recognized business, or the salary or wages of an employee, other than an eligible employee of the vendor, in relation to the particular recognized business, or other than an excluded employee of the vendor, paid by the vendor in respect of a pay period, within the particular calendar year, in which the employee reports for work at an establishment of the vendor situated in Québec and spends, when at work, at least 90% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in any of paragraphs a to e of the definition of “recognized business” in the first paragraph of section 1029.8.36.72.83, and

ii.  for the purposes of subparagraph 2 of subparagraph iv of subparagraph c of the first paragraph,

(1)  if the activities referred to in the first paragraph relate to a recognized business of the vendor, the salary or wages paid by the vendor to an employee in respect of a pay period, within the particular calendar year, for which the employee is an eligible employee, in relation to the recognized business, or the salary or wages of an employee, other than an eligible employee of the vendor, in relation to the recognized business, or other than an excluded employee of the vendor, paid by the vendor in respect of a pay period, within the particular calendar year, in which the employee reports for work at an establishment of the vendor situated in Québec and spends, when at work, at least 90% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in any of paragraphs a to e of the definition of “recognized business” in the first paragraph of section 1029.8.36.72.83, and

(2)  if the activities referred to in the first paragraph do not relate to a recognized business of the vendor but relate to a recognized business of the purchaser, the salary or wages of an employee, other than an excluded employee of the vendor, paid by the vendor in respect of a pay period, within the particular calendar year, in which the employee reports for work at an establishment of the vendor situated in Québec and spends, when at work, at least 90% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in any of paragraphs a to e of the definition of “recognized business” in the first paragraph of section 1029.8.36.72.83;

(e)  E is the aggregate of all amounts each of which is the salary or wages paid by the vendor to an employee in respect of a pay period, within the vendor’s base period in relation to the particular recognized business, in which the employee reports for work at an establishment of the vendor situated in Québec and spends, when at work, at least 90% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in any of paragraphs a to e of the definition of “recognized business” in the first paragraph of section 1029.8.36.72.83, unless an amount is included, in respect of the employee, in relation to the vendor, in computing an amount determined for the particular calendar year under this subparagraph, in relation to another recognized business;

(f)  F is the aggregate of all amounts each of which is the salary or wages paid by the vendor to an employee in respect of a pay period, within the particular calendar year, in which the employee reports for work at an establishment of the vendor situated in Québec and spends, when at work, at least 90% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in any of paragraphs a to e of the definition of “recognized business” in the first paragraph of section 1029.8.36.72.83; and

(g)  G is the proportion that the number of the vendor’s employees referred to in any of subparagraphs a to f, as the case may be, who were assigned to the carrying on of part of the activities that diminished or ceased at the particular time is of the number of the vendor’s employees assigned to those activities immediately before the particular time.

2009, c. 5, s. 454.