I-3 - Taxation Act

Section 1129.27.12 Disposition versions

2017-02-08

1129.27.12. (Repealed).

2003, c. 9, s. 404; 2004, c. 21, s. 469; 2017, c. 1, s. 379.

2006-03-01

1129.27.12. Where, for a taxation year that begins after 31 December 2005, the Corporation fails to fulfil the investment requirement set out in the second paragraph of section 19 of the Act constituting Capital régional et coopératif Desjardins (chapter C-6.1), the Corporation is required to pay for the year a tax under this Part equal to the amount determined by the formula

{10% × [(60% × A) − B]} + {20% × [(21% × A) − C]}.

In the formula provided for in the first paragraph,

(a)  A is the amount of the average net assets of the Corporation for the preceding taxation year;

(b)  B is the amount, for the year, of the average investments, entailing no security or hypothec, of the Corporation in eligible entities, including such investments permitted under the fifth paragraph of section 19 of the Act constituting Capital régional et coopératif Desjardins; and

(c)  C is the amount, for the year, of the average investments, entailing no security or hypothec, of the Corporation in eligible cooperatives and eligible entities situated in resource regions of Québec, including such investments permitted under the fifth paragraph of section 19 of the Act constituting Capital régional et coopératif Desjardins if they are made in those cooperatives or entities.

For the purposes of this section, for the purpose of computing the net assets of the Corporation, the movable or immovable property used by the Corporation to carry on its operations shall not be taken into account.

For the purposes of this section, the following rules apply:

(a)  the average net assets for the preceding taxation year shall be determined by adding the net assets at the beginning of that preceding year to the net assets at the end of that preceding year and by dividing the sum so obtained by 2; and

(b)  the average investments for the taxation year shall be determined by the formula

(D + E + F + G) / 2.

In the formula provided for in subparagraph b of the fourth paragraph,

(a)  D is the Corporation’s investments permitted under section 19 of the Act constituting Capital régional et coopératif Desjardins and entailing no security or hypothec, at the beginning of the taxation year;

(b)  E is the Corporation’s investments permitted under section 19 of the Act constituting Capital régional et coopératif Desjardins and entailing no security or hypothec, at the end of the taxation year;

(c)  F is the amount by which an amount that is the total of the disinvestments for the taxation year that relate to investments entailing no security or hypothec, already made by the Corporation and permitted under section 19 of the Act constituting Capital régional et coopératif Desjardins, exceeds an amount equal to 2% of the Corporation’s average net assets for the preceding taxation year; and

(d)  G is the amount determined under subparagraph c for the preceding taxation year.

2003, c. 9, s. 404; 2004, c. 21, s. 469.