I-3 - Taxation Act

Section 1130 Disposition versions

2009-06-04

1130. In this Part and in the regulations, unless the context indicates otherwise,

“annual qualification certificate” means an annual qualification certificate within the meaning assigned by the first paragraph of section 737.18.14;

“authorized foreign bank” has the meaning assigned by section 1;

“bank” means a bank within the meaning assigned by section 1;

“base period” means a base period within the meaning assigned by section 737.18.6;

“bond” means a negotiable debt security issued to several lenders of funds to meet a need for long-term financing;

“business” means a business within the meaning assigned to it by section 1;

“Canadian banking business” has the meaning assigned by section 1;

“corporation trading in securities” means a corporation that is a registered securities dealer within the meaning assigned by section 1;

“deduction period” of a corporation in respect of an eligible vessel means

(a)  where the corporation constructs or converts the eligible vessel for the corporation, the period that begins at the beginning of the taxation year of the corporation during which it undertakes the construction work or conversion work in respect of the eligible vessel and that ends at the end of the fourth taxation year following the taxation year during which it completes the construction or conversion, as the case may be, of the eligible vessel; and

(b)  where the eligible vessel is constructed or converted on behalf of the corporation, the period that begins at the beginning of the taxation year of the corporation during which the construction work or conversion work provided for in the contract for the construction or conversion, as the case may be, of the eligible vessel is undertaken in respect of the eligible vessel and that ends at the end of the fourth taxation year following the taxation year during which the corporation takes delivery, under the terms of the contract, of the eligible vessel;

“eligibility period” means an eligibility period within the meaning assigned by section 737.18.14;

“eligible acquisition costs” incurred by a corporation, for a taxation year, in respect of an eligible vessel of the corporation means an amount that is related to a business operated in the year in Québec by the corporation and that is,

(a)  where the eligible vessel is constructed on behalf of the corporation pursuant to a written contract, the taxation year is a year, other than a year referred to in paragraph b, during which construction work provided for in the contract was carried out in respect of the eligible vessel, and the construction work may reasonably be considered to have been carried out without undue delay since it was undertaken, the portion of the consideration provided for in the written contract for the construction of the eligible vessel that was paid by the corporation to its contracting partner in the year or a preceding taxation year and that may reasonably be attributed to the construction work carried out in respect of the vessel before the end of that year;

(a.1)  where the corporation constructs the eligible vessel for the corporation, the taxation year is a year, other than a year referred to in paragraph b, during which construction work was carried out by the corporation in respect of the eligible vessel, and the construction work may reasonably be considered to have been carried out without undue delay since it was undertaken, the aggregate of the costs incurred by the corporation at or before the end of the year for the construction of the vessel, to the extent that they are reasonable in the circumstances and included, at the end of that year, in the capital cost of the vessel, that may reasonably be attributed to the construction work carried out in respect of the vessel before the end of that year; or

(b)  where the taxation year is the year during which the corporation completes the construction of the vessel or, where the eligible vessel is constructed on behalf of the corporation, the year during which the corporation takes delivery, under the terms of the contract, of the eligible vessel, or is any of the four taxation years subsequent to that year, the cost of the vessel to the corporation as shown in its financial statements;

“eligible activities” means eligible activities within the meaning assigned by the first paragraph of any of sections 737.18.6, 737.18.14 and 737.18.29, as the case may be;

“eligible contract” means a written contract in respect of which a qualification certificate has been issued by the Minister of Economic Development, Innovation and Export Trade, entered into by a corporation with a person or partnership and under which the corporation entrusts the person or partnership with the carrying out of work in Québec which is related to the conversion of an eligible vessel;

“eligible conversion costs” incurred by a corporation, for a taxation year, in respect of an eligible vessel of the corporation means an amount that is related to a business operated in the year in Québec by the corporation and that is,

(a)  where the eligible vessel is converted on behalf of the corporation pursuant to an eligible contract, the taxation year is a year, other than a year referred to in paragraph c, during which conversion work provided for in the contract was carried out in respect of the eligible vessel, and the conversion work may reasonably be considered to have been carried out without undue delay since it was undertaken, the portion of the consideration provided for in the eligible contract that was paid by the corporation to its contracting partner in the year or a preceding taxation year and that may reasonably be attributed to the conversion work carried out in respect of the vessel before the end of that year;

(b)  where the corporation converts the eligible vessel for the corporation, the taxation year is a year, other than a year referred to in paragraph c, during which conversion work was carried out by the corporation in respect of the eligible vessel, and the conversion work may reasonably be considered to have been carried out without undue delay since it was undertaken, the aggregate of the costs incurred by the corporation at or before the end of the year for the conversion of the vessel, to the extent that they are reasonable in the circumstances and included, at the end of that year, in the capital cost of the vessel, that may reasonably be attributed to the conversion work carried out in respect of the vessel before the end of that year; or

(c)  where the taxation year is the year during which the corporation completes the conversion of the vessel or, where the eligible vessel is converted on behalf of the corporation, the year during which the corporation takes delivery, under the terms of the contract, of the eligible vessel, or is any of the four taxation years subsequent to that year,

i.  where the corporation converted the eligible vessel for the corporation, the aggregate of the costs incurred by the corporation for the conversion of the vessel, to the extent that they are reasonable in the circumstances, that are included in the capital cost of the vessel, or

ii.  where the corporation caused the eligible vessel to be converted on behalf of the corporation under the terms of an eligible contract, the portion of the total consideration paid by the corporation to its contracting partner pursuant to the contract that may reasonably be attributed to the conversion work carried out in respect of the eligible vessel;

“eligible vessel” of a corporation means a vessel that is constructed or converted by the corporation for the corporation or that the corporation causes to be constructed or converted on behalf of the corporation, and in respect of which a qualification certificate is issued by the Minister of Economic Development, Innovation and Export Trade for the purposes of this Part;

“establishment” means an establishment within the meaning assigned to it by section 1;

“exemption period” means an exemption period within the meaning assigned by the first paragraph of section 737.18.29;

“farming” means farming within the meaning assigned by section 1;

“farming corporation” means a corporation whose activities consist mainly in carrying on the business of farming;

“filing-due date” means a filing-due date within the meaning assigned by section 1;

“financial statements” means either the financial statements submitted to the shareholders of a corporation or to the members of a partnership or joint venture, as the case may be, and prepared in accordance with generally accepted accounting principles or, if the financial statements are consolidated financial statements, the non-consolidated financial statements prepared in accordance with the same generally accepted accounting principles as those that apply in preparing the consolidated financial statements or,

(a)  if such financial statements have not been prepared, such financial statements had they been prepared in accordance with generally accepted accounting principles or, in the case where the financial statements that should have been prepared are consolidated financial statements, such non-consolidated financial statements had they been prepared in accordance with the same generally accepted accounting principles as those that would have applied in preparing consolidated financial statements; or

(b)  if such financial statements have not been prepared in accordance with generally accepted accounting principles, such financial statements had they been prepared in accordance with generally accepted accounting principles or, in the case where the financial statements that were not prepared in accordance with generally accepted accounting principles are consolidated financial statements, such non-consolidated financial statements prepared in accordance with the same generally accepted accounting principles as those that should have applied in preparing the consolidated financial statements;

“fiscal period” means a fiscal period within the meaning assigned by Part I;

“fishing” means fishing within the meaning assigned by section 1;

“government assistance” means assistance from a government, municipality or other public authority, whether as a grant, subsidy, forgivable loan, deduction from tax, investment allowance or as any other form of assistance;

“gross revenue” means the gross revenue within the meaning assigned to it by section 1;

“international financial centre” means an international financial centre within the meaning assigned by section 1;

“loan corporation” means

(a)  a corporation, other than a trust corporation, authorized by the legislation of Canada or of a province to accept deposits from the public;

(b)  a corporation all or substantially all of the assets of which are shares or debts of corporations referred to in Title II of Book III to which it is related; or

(c)  a corporation recognized by the Minister under section 1143.1 and whose recognition is in effect;

“long-term debt” means

(a)  in the case of a bank, its subordinated indebtedness, within the meaning assigned by section 2 of the Bank Act (S.C. 1991, c. 46), evidenced by obligations issued for a term of not less than five years;

(b)  in the case of a trust corporation, a loan corporation or a corporation trading in securities, its subordinated indebtedness, within the meaning that would be assigned by section 2 of the Bank Act if the definition of that expression in that section were applied with the necessary modifications, evidenced by obligations issued for a term of not less than five years; and

(c)  in the case of a savings and credit union, its subordinated indebtedness, within the meaning that would be assigned by section 2 of the Cooperative Credit Associations Act (S.C. 1991, c. 48) if the definition of that expression were applied with the necessary modifications, issued for a term of not less than five years;

“major investment project” means a major investment project within the meaning assigned by the first paragraph of section 737.18.14;

“manufacturing corporation” for a taxation year means a corporation in respect of which the proportion of the manufacturing or processing activities for the year is at least 20%;

“mineral resource” means a mineral resource within the meaning of section 1, but does not include a bituminous sands deposit, an oil sands deposit or an oil shale deposit;

“non-government assistance” means an amount that would be included in computing the individual’s income by reason of paragraph w of section 87, if that paragraph were read without reference to subparagraphs ii and iii thereof;

“OSFI risk-weighting guidelines” means the guidelines, issued by the Superintendent of Financial Institutions of Canada under the authority of section 600 of the Bank Act, requiring an authorized foreign bank to provide to the Superintendent on a periodic basis a return of the bank’s risk-weighted on-balance sheet assets and off-balance sheet exposures, that apply as of 8 August 2000;

“person” means a person within the meaning assigned by section 1;

“proportion of the manufacturing or processing activities” of a corporation for a taxation year means

(a)  the proportion, expressed as a percentage, that the amount determined in respect of the corporation for the year under paragraph a of section 5200 of the Income Tax Regulations made under the Income Tax Act (R.S.C, 1985, chapter 1, 5th Suppl.) is of the amount determined in respect of the corporation for the year under paragraph b of section 5200 of those regulations; or

(b)  100%, if section 5201 of the Income Tax Regulations made under the Income Tax Act applies in respect of the corporation for the year;

“province” means a province within the meaning assigned by section 1;

“qualified corporation” for a taxation year means a corporation, other than a prescribed corporation for the purposes of subparagraph a of the first paragraph of section 1143, that

(a)  in the taxation year, carries on a recognized business all or any part of whose activities are eligible activities carried on in the base period applicable to the corporation in respect of those eligible activities, or is a member of a partnership that, in a fiscal period of the partnership ending in the taxation year, carries on a recognized business all or any part of whose activities are eligible activities carried on in the base period applicable to the partnership in respect of those eligible activities; and

(b)  encloses with its fiscal return it is required to file for the taxation year under section 1000 a copy of the certificate issued in respect of each recognized business carried on by it or carried on by a partnership of which it is a member;

“recognized business” means a recognized business within the meaning assigned by the first paragraph of any of sections 737.18.14, 737.18.29 and 1029.8.36.0.38 or section 1029.8.36.0.38.1, as the case may be;

“regulation” means a regulation made by the Government under this Part;

“savings and credit union” means a savings and credit union within the meaning assigned by section 797;

“specified shareholder” means a specified shareholder within the meaning of section 1;

“surplus” means the surpluses of a corporation and includes any amount by which any property has been valued in excess of its cost;

“taxation year” means a taxation year within the meaning assigned by Part I;

“trust corporation” means a corporation authorized by the legislation of Canada or of a province to provide trustee services.

1972, c. 23, s. 843; 1972, c. 26, s. 78; 1973, c. 17, s. 133; 1974, c. 18, s. 43; 1979, c. 38, s. 27; 1986, c. 15, s. 198; 1987, c. 21, s. 87; 1991, c. 7, s. 14; 1993, c. 16, s. 355; 1995, c. 1, s. 192; 1995, c. 63, s. 237; 1996, c. 39, s. 271; 1997, c. 3, s. 66; 1997, c. 14, s. 269; 1997, c. 31, s. 136; 1997, c. 85, s. 310; 1999, c. 8, s. 20; 1999, c. 83, s. 255; 2000, c. 39, s. 244; 2001, c. 51, s. 221; 2001, c. 51, s. 228; 2001, c. 53, s. 260; 2002, c. 9, s. 129; 2003, c. 9, s. 416; 2003, c. 29, s. 135; 2004, c. 8, s. 205; 2004, c. 21, s. 488; 2005, c. 1, s. 283; 2006, c. 8, s. 31; 2007, c. 12, s. 304; 2009, c. 5, s. 535; 2009, c. 15, s. 427.

2009-05-15

1130. In this Part and in the regulations, unless the context indicates otherwise,

“annual qualification certificate” means an annual qualification certificate within the meaning assigned by the first paragraph of section 737.18.14;

“authorized foreign bank” has the meaning assigned by section 1;

“bank” means a bank within the meaning assigned by section 1;

“base period” means a base period within the meaning assigned by section 737.18.6;

“bond” means a negotiable debt security issued to several lenders of funds to meet a need for long-term financing;

“business” means a business within the meaning assigned to it by section 1;

“Canadian banking business” has the meaning assigned by section 1;

“corporation trading in securities” means a corporation that is a registered securities dealer within the meaning assigned by section 1;

“deduction period” of a corporation in respect of an eligible vessel means

(a)  where the corporation constructs or converts the eligible vessel for the corporation, the period that begins at the beginning of the taxation year of the corporation during which it undertakes the construction work or conversion work in respect of the eligible vessel and that ends at the end of the fourth taxation year following the taxation year during which it completes the construction or conversion, as the case may be, of the eligible vessel; and

(b)  where the eligible vessel is constructed or converted on behalf of the corporation, the period that begins at the beginning of the taxation year of the corporation during which the construction work or conversion work provided for in the contract for the construction or conversion, as the case may be, of the eligible vessel is undertaken in respect of the eligible vessel and that ends at the end of the fourth taxation year following the taxation year during which the corporation takes delivery, under the terms of the contract, of the eligible vessel;

“eligibility period” means an eligibility period within the meaning assigned by section 737.18.14;

“eligible acquisition costs” incurred by a corporation, for a taxation year, in respect of an eligible vessel of the corporation means an amount that is related to a business operated in the year in Québec by the corporation and that is,

(a)  where the eligible vessel is constructed on behalf of the corporation pursuant to a written contract, the taxation year is a year, other than a year referred to in paragraph b, during which construction work provided for in the contract was carried out in respect of the eligible vessel, and the construction work may reasonably be considered to have been carried out without undue delay since it was undertaken, the portion of the consideration provided for in the written contract for the construction of the eligible vessel that was paid by the corporation to its contracting partner in the year or a preceding taxation year and that may reasonably be attributed to the construction work carried out in respect of the vessel before the end of that year;

(a.1)  where the corporation constructs the eligible vessel for the corporation, the taxation year is a year, other than a year referred to in paragraph b, during which construction work was carried out by the corporation in respect of the eligible vessel, and the construction work may reasonably be considered to have been carried out without undue delay since it was undertaken, the aggregate of the costs incurred by the corporation at or before the end of the year for the construction of the vessel, to the extent that they are reasonable in the circumstances and included, at the end of that year, in the capital cost of the vessel, that may reasonably be attributed to the construction work carried out in respect of the vessel before the end of that year; or

(b)  where the taxation year is the year during which the corporation completes the construction of the vessel or, where the eligible vessel is constructed on behalf of the corporation, the year during which the corporation takes delivery, under the terms of the contract, of the eligible vessel, or is any of the four taxation years subsequent to that year, the cost of the vessel to the corporation as shown in its financial statements;

“eligible activities” means eligible activities within the meaning assigned by the first paragraph of any of sections 737.18.6, 737.18.14 and 737.18.29, as the case may be;

“eligible contract” means a written contract in respect of which a qualification certificate has been issued by the Minister of Economic Development, Innovation and Export Trade, entered into by a corporation with a person or partnership and under which the corporation entrusts the person or partnership with the carrying out of work in Québec which is related to the conversion of an eligible vessel;

“eligible conversion costs” incurred by a corporation, for a taxation year, in respect of an eligible vessel of the corporation means an amount that is related to a business operated in the year in Québec by the corporation and that is,

(a)  where the eligible vessel is converted on behalf of the corporation pursuant to an eligible contract, the taxation year is a year, other than a year referred to in paragraph c, during which conversion work provided for in the contract was carried out in respect of the eligible vessel, and the conversion work may reasonably be considered to have been carried out without undue delay since it was undertaken, the portion of the consideration provided for in the eligible contract that was paid by the corporation to its contracting partner in the year or a preceding taxation year and that may reasonably be attributed to the conversion work carried out in respect of the vessel before the end of that year;

(b)  where the corporation converts the eligible vessel for the corporation, the taxation year is a year, other than a year referred to in paragraph c, during which conversion work was carried out by the corporation in respect of the eligible vessel, and the conversion work may reasonably be considered to have been carried out without undue delay since it was undertaken, the aggregate of the costs incurred by the corporation at or before the end of the year for the conversion of the vessel, to the extent that they are reasonable in the circumstances and included, at the end of that year, in the capital cost of the vessel, that may reasonably be attributed to the conversion work carried out in respect of the vessel before the end of that year; or

(c)  where the taxation year is the year during which the corporation completes the conversion of the vessel or, where the eligible vessel is converted on behalf of the corporation, the year during which the corporation takes delivery, under the terms of the contract, of the eligible vessel, or is any of the four taxation years subsequent to that year,

i.  where the corporation converted the eligible vessel for the corporation, the aggregate of the costs incurred by the corporation for the conversion of the vessel, to the extent that they are reasonable in the circumstances, that are included in the capital cost of the vessel, or

ii.  where the corporation caused the eligible vessel to be converted on behalf of the corporation under the terms of an eligible contract, the portion of the total consideration paid by the corporation to its contracting partner pursuant to the contract that may reasonably be attributed to the conversion work carried out in respect of the eligible vessel;

“eligible vessel” of a corporation means a vessel that is constructed or converted by the corporation for the corporation or that the corporation causes to be constructed or converted on behalf of the corporation, and in respect of which a qualification certificate is issued by the Minister of Economic Development, Innovation and Export Trade attesting that the vessel is constructed or converted, as the case may be, in Québec and, where the vessel is constructed on behalf of the corporation, that the corporation is the first acquirer thereof;

“establishment” means an establishment within the meaning assigned to it by section 1;

“exemption period” means an exemption period within the meaning assigned by the first paragraph of section 737.18.29;

“farming” means farming within the meaning assigned by section 1;

“farming corporation” means a corporation whose activities consist mainly in carrying on the business of farming;

“filing-due date” means a filing-due date within the meaning assigned by section 1;

“financial statements” means either the financial statements submitted to the shareholders of a corporation or to the members of a partnership or joint venture, as the case may be, and prepared in accordance with generally accepted accounting principles or, if the financial statements are consolidated financial statements, the non-consolidated financial statements prepared in accordance with the same generally accepted accounting principles as those that apply in preparing the consolidated financial statements or,

(a)  if such financial statements have not been prepared, such financial statements had they been prepared in accordance with generally accepted accounting principles or, in the case where the financial statements that should have been prepared are consolidated financial statements, such non-consolidated financial statements had they been prepared in accordance with the same generally accepted accounting principles as those that would have applied in preparing consolidated financial statements; or

(b)  if such financial statements have not been prepared in accordance with generally accepted accounting principles, such financial statements had they been prepared in accordance with generally accepted accounting principles or, in the case where the financial statements that were not prepared in accordance with generally accepted accounting principles are consolidated financial statements, such non-consolidated financial statements prepared in accordance with the same generally accepted accounting principles as those that should have applied in preparing the consolidated financial statements;

“fiscal period” means a fiscal period within the meaning assigned by Part I;

“fishing” means fishing within the meaning assigned by section 1;

“government assistance” means assistance from a government, municipality or other public authority, whether as a grant, subsidy, forgivable loan, deduction from tax, investment allowance or as any other form of assistance;

“gross revenue” means the gross revenue within the meaning assigned to it by section 1;

“international financial centre” means an international financial centre within the meaning assigned by section 1;

“loan corporation” means

(a)  a corporation, other than a trust corporation, authorized by the legislation of Canada or of a province to accept deposits from the public;

(b)  a corporation all or substantially all of the assets of which are shares or debts of corporations referred to in Title II of Book III to which it is related;

(c)  a corporation recognized by the Minister under section 1143.1 and whose recognition is in effect;

“long-term debt” means

(a)  in the case of a bank, its subordinated indebtedness, within the meaning assigned by section 2 of the Bank Act (S.C. 1991, c. 46), evidenced by obligations issued for a term of not less than 5 years;

(b)  in the case of a trust corporation, a loan corporation or a corporation trading in securities, its subordinated indebtedness, within the meaning that would be assigned by section 2 of the Bank Act if the definition of that expression in that section were applied with the necessary modifications, evidenced by obligations issued for a term of not less than 5 years; and

(c)  in the case of a savings and credit union, its subordinated indebtedness, within the meaning that would be assigned by section 2 of the Cooperative Credit Associations Act (S.C. 1991, c. 48) if the definition of that expression were applied with the necessary modifications, issued for a term of not less than five years;

“major investment project” means a major investment project within the meaning assigned by the first paragraph of section 737.18.14;

“mineral resource” means a mineral resource within the meaning of section 1, but does not include a bituminous sands deposit, an oil sands deposit or an oil shale deposit;

“non-government assistance” means an amount that would be included in computing the individual’s income by reason of paragraph w of section 87, if that paragraph were read without reference to subparagraphs ii and iii thereof;

“OSFI risk-weighting guidelines” means the guidelines, issued by the Superintendent of Financial Institutions of Canada under the authority of section 600 of the Bank Act, requiring an authorized foreign bank to provide to the Superintendent on a periodic basis a return of the bank’s risk-weighted on-balance sheet assets and off-balance sheet exposures, that apply as of 8 August 2000;

“person” means a person within the meaning assigned by section 1;

“province” means a province within the meaning assigned by section 1;

“qualified corporation” for a taxation year means a corporation, other than a prescribed corporation for the purposes of subparagraph a of the first paragraph of section 1143, that

(a)  in the taxation year, carries on a recognized business all or any part of whose activities are eligible activities carried on in the base period applicable to the corporation in respect of those eligible activities, or is a member of a partnership that, in a fiscal period of the partnership ending in the taxation year, carries on a recognized business all or any part of whose activities are eligible activities carried on in the base period applicable to the partnership in respect of those eligible activities; and

(b)  encloses with its fiscal return it is required to file for the taxation year under section 1000 a copy of the certificate issued in respect of each recognized business carried on by it or carried on by a partnership of which it is a member;

“recognized business” means a recognized business within the meaning assigned by the first paragraph of any of sections 737.18.14, 737.18.29 and 1029.8.36.0.38 or section 1029.8.36.0.38.1, as the case may be;

“regulation” means a regulation made by the Government under this Part;

“savings and credit union” means a savings and credit union within the meaning assigned by section 797;

“specified shareholder” means a specified shareholder within the meaning of section 1;

“surplus” means the surpluses of a corporation and includes any amount by which any property has been valued in excess of its cost;

“taxation year” means a taxation year within the meaning assigned by Part I;

“trust corporation” means a corporation authorized by the legislation of Canada or of a province to provide trustee services.

1972, c. 23, s. 843; 1972, c. 26, s. 78; 1973, c. 17, s. 133; 1974, c. 18, s. 43; 1979, c. 38, s. 27; 1986, c. 15, s. 198; 1987, c. 21, s. 87; 1991, c. 7, s. 14; 1993, c. 16, s. 355; 1995, c. 1, s. 192; 1995, c. 63, s. 237; 1996, c. 39, s. 271; 1997, c. 3, s. 66; 1997, c. 14, s. 269; 1997, c. 31, s. 136; 1997, c. 85, s. 310; 1999, c. 8, s. 20; 1999, c. 83, s. 255; 2000, c. 39, s. 244; 2001, c. 51, s. 221; 2001, c. 51, s. 228; 2001, c. 53, s. 260; 2002, c. 9, s. 129; 2003, c. 9, s. 416; 2003, c. 29, s. 135; 2004, c. 8, s. 205; 2004, c. 21, s. 488; 2005, c. 1, s. 283; 2006, c. 8, s. 31; 2007, c. 12, s. 304; 2009, c. 5, s. 535.

2007-11-07

1130. In this Part and in the regulations, unless the context indicates otherwise,

“annual qualification certificate” means an annual qualification certificate within the meaning assigned by the first paragraph of section 737.18.14;

“authorized foreign bank” has the meaning assigned by section 1;

“bank” means a bank within the meaning assigned by section 1;

“base period” means a base period within the meaning assigned by section 737.18.6;

“business” means a business within the meaning assigned to it by section 1;

“Canadian banking business” has the meaning assigned by section 1;

“corporation trading in securities” means a corporation that is a registered securities dealer within the meaning assigned by section 1;

“deduction period” of a corporation in respect of an eligible vessel means

(a)  where the corporation constructs or converts the eligible vessel for the corporation, the period that begins at the beginning of the taxation year of the corporation during which it undertakes the construction work or conversion work in respect of the eligible vessel and that ends at the end of the fourth taxation year following the taxation year during which it completes the construction or conversion, as the case may be, of the eligible vessel; and

(b)  where the eligible vessel is constructed or converted on behalf of the corporation, the period that begins at the beginning of the taxation year of the corporation during which the construction work or conversion work provided for in the contract for the construction or conversion, as the case may be, of the eligible vessel is undertaken in respect of the eligible vessel and that ends at the end of the fourth taxation year following the taxation year during which the corporation takes delivery, under the terms of the contract, of the eligible vessel;

“eligibility period” means an eligibility period within the meaning assigned by section 737.18.14;

“eligible acquisition costs” incurred by a corporation, for a taxation year, in respect of an eligible vessel of the corporation means an amount that is related to a business operated in the year in Québec by the corporation and that is,

(a)  where the eligible vessel is constructed on behalf of the corporation pursuant to a written contract, the taxation year is a year, other than a year referred to in paragraph b, during which construction work provided for in the contract was carried out in respect of the eligible vessel, and the construction work may reasonably be considered to have been carried out without undue delay since it was undertaken, the portion of the consideration provided for in the written contract for the construction of the eligible vessel that was paid by the corporation to its contracting partner in the year or a preceding taxation year and that may reasonably be attributed to the construction work carried out in respect of the vessel before the end of that year;

(a.1)  where the corporation constructs the eligible vessel for the corporation, the taxation year is a year, other than a year referred to in paragraph b, during which construction work was carried out by the corporation in respect of the eligible vessel, and the construction work may reasonably be considered to have been carried out without undue delay since it was undertaken, the aggregate of the costs incurred by the corporation at or before the end of the year for the construction of the vessel, to the extent that they are reasonable in the circumstances and included, at the end of that year, in the capital cost of the vessel, that may reasonably be attributed to the construction work carried out in respect of the vessel before the end of that year; or

(b)  where the taxation year is the year during which the corporation completes the construction of the vessel or, where the eligible vessel is constructed on behalf of the corporation, the year during which the corporation takes delivery, under the terms of the contract, of the eligible vessel, or is any of the four taxation years subsequent to that year, the cost of the vessel to the corporation as shown in its financial statements;

“eligible activities” means eligible activities within the meaning assigned by the first paragraph of any of sections 737.18.6, 737.18.14 and 737.18.29, as the case may be;

“eligible contract” means a written contract in respect of which a qualification certificate has been issued by the Minister of Economic Development, Innovation and Export Trade, entered into by a corporation with a person or partnership and under which the corporation entrusts the person or partnership with the carrying out of work in Québec which is related to the conversion of an eligible vessel;

“eligible conversion costs” incurred by a corporation, for a taxation year, in respect of an eligible vessel of the corporation means an amount that is related to a business operated in the year in Québec by the corporation and that is,

(a)  where the eligible vessel is converted on behalf of the corporation pursuant to an eligible contract, the taxation year is a year, other than a year referred to in paragraph c, during which conversion work provided for in the contract was carried out in respect of the eligible vessel, and the conversion work may reasonably be considered to have been carried out without undue delay since it was undertaken, the portion of the consideration provided for in the eligible contract that was paid by the corporation to its contracting partner in the year or a preceding taxation year and that may reasonably be attributed to the conversion work carried out in respect of the vessel before the end of that year;

(b)  where the corporation converts the eligible vessel for the corporation, the taxation year is a year, other than a year referred to in paragraph c, during which conversion work was carried out by the corporation in respect of the eligible vessel, and the conversion work may reasonably be considered to have been carried out without undue delay since it was undertaken, the aggregate of the costs incurred by the corporation at or before the end of the year for the conversion of the vessel, to the extent that they are reasonable in the circumstances and included, at the end of that year, in the capital cost of the vessel, that may reasonably be attributed to the conversion work carried out in respect of the vessel before the end of that year; or

(c)  where the taxation year is the year during which the corporation completes the conversion of the vessel or, where the eligible vessel is converted on behalf of the corporation, the year during which the corporation takes delivery, under the terms of the contract, of the eligible vessel, or is any of the four taxation years subsequent to that year,

i.  where the corporation converted the eligible vessel for the corporation, the aggregate of the costs incurred by the corporation for the conversion of the vessel, to the extent that they are reasonable in the circumstances, that are included in the capital cost of the vessel, or

ii.  where the corporation caused the eligible vessel to be converted on behalf of the corporation under the terms of an eligible contract, the portion of the total consideration paid by the corporation to its contracting partner pursuant to the contract that may reasonably be attributed to the conversion work carried out in respect of the eligible vessel;

“eligible vessel” of a corporation means a vessel that is constructed or converted by the corporation for the corporation or that the corporation causes to be constructed or converted on behalf of the corporation, and in respect of which a qualification certificate is issued by the Minister of Economic Development, Innovation and Export Trade attesting that the vessel is constructed or converted, as the case may be, in Québec and, where the vessel is constructed on behalf of the corporation, that the corporation is the first acquirer thereof;

“establishment” means an establishment within the meaning assigned to it by section 1;

“exemption period” means an exemption period within the meaning assigned by the first paragraph of section 737.18.29;

“farming” means farming within the meaning assigned by section 1;

“farming corporation” means a corporation whose activities consist mainly in carrying on the business of farming;

“filing-due date” means a filing-due date within the meaning assigned by section 1;

“financial statements” means the financial statements submitted to the shareholders of a corporation or to the members of a partnership or joint venture, as the case may be, and prepared in accordance with generally accepted accounting principles or, where such financial statements have not been prepared, or have not been prepared in accordance with generally accepted accounting principles, such financial statements if they had been prepared in accordance with generally accepted accounting principles;

“fiscal period” means a fiscal period within the meaning assigned by Part I;

“fishing” means fishing within the meaning assigned by section 1;

“government assistance” means assistance from a government, municipality or other public authority, whether as a grant, subsidy, forgivable loan, deduction from tax, investment allowance or as any other form of assistance;

“gross revenue” means the gross revenue within the meaning assigned to it by section 1;

“international financial centre” means an international financial centre within the meaning assigned by section 1;

“loan corporation” means

(a)  a corporation, other than a trust corporation, authorized by the legislation of Canada or of a province to accept deposits from the public;

(b)  a corporation all or substantially all of the assets of which are shares or debts of corporations referred to in Title II of Book III to which it is related;

(c)  a corporation recognized by the Minister under section 1143.1 and whose recognition is in effect;

“long-term debt” means

(a)  in the case of a bank, its subordinated indebtedness, within the meaning assigned by section 2 of the Bank Act (Statutes of Canada, 1991, chapter 46), evidenced by obligations issued for a term of not less than 5 years;

(b)  in the case of a trust corporation, a loan corporation or a corporation trading in securities, its subordinated indebtedness, within the meaning that would be assigned by section 2 of the Bank Act if the definition of that expression in that section were applied with the necessary modifications, evidenced by obligations issued for a term of not less than 5 years; and

(c)  in the case of a savings and credit union, its subordinated indebtedness, within the meaning that would be assigned by section 2 of the Cooperative Credit Associations Act (Statutes of Canada, 1991, chapter 48) if the definition of that expression were applied with the necessary modifications, issued for a term of not less than five years;

“major investment project” means a major investment project within the meaning assigned by the first paragraph of section 737.18.14;

“mineral resource” means a mineral resource within the meaning of section 1, but does not include a bituminous sands deposit, an oil sands deposit or an oil shale deposit;

“non-government assistance” means an amount that would be included in computing the individual’s income by reason of paragraph w of section 87, if that paragraph were read without reference to subparagraphs ii and iii thereof;

“OSFI risk-weighting guidelines” means the guidelines, issued by the Superintendent of Financial Institutions of Canada under the authority of section 600 of the Bank Act (Statutes of Canada, 1991, chapter 46), requiring an authorized foreign bank to provide to the Superintendent on a periodic basis a return of the bank’s risk-weighted on-balance sheet assets and off-balance sheet exposures, that apply as of 8 August 2000;

“person” means a person within the meaning assigned by section 1;

“province” means a province within the meaning assigned by section 1;

“qualified corporation” for a taxation year means a corporation, other than a prescribed corporation for the purposes of subparagraph a of the first paragraph of section 1143, that

(a)  in the taxation year, carries on a recognized business all or any part of whose activities are eligible activities carried on in the base period applicable to the corporation in respect of those eligible activities, or is a member of a partnership that, in a fiscal period of the partnership ending in the taxation year, carries on a recognized business all or any part of whose activities are eligible activities carried on in the base period applicable to the partnership in respect of those eligible activities; and

(b)  encloses with its fiscal return it is required to file for the taxation year under section 1000 a copy of the certificate issued in respect of each recognized business carried on by it or carried on by a partnership of which it is a member;

“recognized business” means a recognized business within the meaning assigned by the first paragraph of any of sections 737.18.14, 737.18.29 and 1029.8.36.0.38 or section 1029.8.36.0.38.1, as the case may be;

“regulation” means a regulation made by the Government under this Part;

“savings and credit union” means a savings and credit union within the meaning assigned by section 797;

“specified shareholder” means a specified shareholder within the meaning of section 1;

“surplus” means the surpluses of a corporation and includes any amount by which any property has been valued in excess of its cost;

“taxation year” means a taxation year within the meaning assigned by Part I;

“trust corporation” means a corporation authorized by the legislation of Canada or of a province to provide trustee services.

1972, c. 23, s. 843; 1972, c. 26, s. 78; 1973, c. 17, s. 133; 1974, c. 18, s. 43; 1979, c. 38, s. 27; 1986, c. 15, s. 198; 1987, c. 21, s. 87; 1991, c. 7, s. 14; 1993, c. 16, s. 355; 1995, c. 1, s. 192; 1995, c. 63, s. 237; 1996, c. 39, s. 271; 1997, c. 3, s. 66; 1997, c. 14, s. 269; 1997, c. 31, s. 136; 1997, c. 85, s. 310; 1999, c. 8, s. 20; 1999, c. 83, s. 255; 2000, c. 39, s. 244; 2001, c. 51, s. 221; 2001, c. 51, s. 228; 2001, c. 53, s. 260; 2002, c. 9, s. 129; 2003, c. 9, s. 416; 2003, c. 29, s. 135; 2004, c. 8, s. 205; 2004, c. 21, s. 488; 2005, c. 1, s. 283; 2006, c. 8, s. 31; 2007, c. 12, s. 304.

2006-06-08

1130. In this Part and in the regulations, unless the context indicates otherwise,

“annual qualification certificate” means an annual qualification certificate within the meaning assigned by the first paragraph of section 737.18.14;

“authorized foreign bank” has the meaning assigned by section 1;

“bank” means a bank within the meaning assigned by section 1;

“base period” means a base period within the meaning assigned by section 737.18.6;

“business” means a business within the meaning assigned to it by section 1;

“Canadian banking business” has the meaning assigned by section 1;

“corporation trading in securities” means a corporation that is a registered securities dealer within the meaning assigned by section 1;

“deduction period” of a corporation in respect of an eligible vessel means

(a)  where the corporation constructs or converts the eligible vessel for the corporation, the period that begins at the beginning of the taxation year of the corporation during which it undertakes the construction work or conversion work in respect of the eligible vessel and that ends at the end of the fourth taxation year following the taxation year during which it completes the construction or conversion, as the case may be, of the eligible vessel; and

(b)  where the eligible vessel is constructed or converted on behalf of the corporation, the period that begins at the beginning of the taxation year of the corporation during which the construction work or conversion work provided for in the contract for the construction or conversion, as the case may be, of the eligible vessel is undertaken in respect of the eligible vessel and that ends at the end of the fourth taxation year following the taxation year during which the corporation takes delivery, under the terms of the contract, of the eligible vessel;

“eligibility period” means an eligibility period within the meaning assigned by section 737.18.14;

“eligible acquisition costs” incurred by a corporation, for a taxation year, in respect of an eligible vessel of the corporation means an amount that is related to a business operated in the year in Québec by the corporation and that is,

(a)  where the eligible vessel is constructed on behalf of the corporation pursuant to a written contract, the taxation year is a year, other than a year referred to in paragraph b, during which construction work provided for in the contract was carried out in respect of the eligible vessel, and the construction work may reasonably be considered to have been carried out without undue delay since it was undertaken, the portion of the consideration provided for in the written contract for the construction of the eligible vessel that was paid by the corporation to its contracting partner in the year or a preceding taxation year and that may reasonably be attributed to the construction work carried out in respect of the vessel before the end of that year;

(a.1)  where the corporation constructs the eligible vessel for the corporation, the taxation year is a year, other than a year referred to in paragraph b, during which construction work was carried out by the corporation in respect of the eligible vessel, and the construction work may reasonably be considered to have been carried out without undue delay since it was undertaken, the aggregate of the costs incurred by the corporation at or before the end of the year for the construction of the vessel, to the extent that they are reasonable in the circumstances and included, at the end of that year, in the capital cost of the vessel, that may reasonably be attributed to the construction work carried out in respect of the vessel before the end of that year; or

(b)  where the taxation year is the year during which the corporation completes the construction of the vessel or, where the eligible vessel is constructed on behalf of the corporation, the year during which the corporation takes delivery, under the terms of the contract, of the eligible vessel, or is any of the four taxation years subsequent to that year, the cost of the vessel to the corporation as shown in its financial statements;

“eligible activities” means eligible activities within the meaning assigned by the first paragraph of any of sections 737.18.6, 737.18.14 and 737.18.29, as the case may be;

“eligible contract” means a written contract in respect of which a qualification certificate has been issued by the Minister of Economic Development, Innovation and Export Trade, entered into by a corporation with a person or partnership and under which the corporation entrusts the person or partnership with the carrying out of work in Québec which is related to the conversion of an eligible vessel;

“eligible conversion costs” incurred by a corporation, for a taxation year, in respect of an eligible vessel of the corporation means an amount that is related to a business operated in the year in Québec by the corporation and that is,

(a)  where the eligible vessel is converted on behalf of the corporation pursuant to an eligible contract, the taxation year is a year, other than a year referred to in paragraph c, during which conversion work provided for in the contract was carried out in respect of the eligible vessel, and the conversion work may reasonably be considered to have been carried out without undue delay since it was undertaken, the portion of the consideration provided for in the eligible contract that was paid by the corporation to its contracting partner in the year or a preceding taxation year and that may reasonably be attributed to the conversion work carried out in respect of the vessel before the end of that year;

(b)  where the corporation converts the eligible vessel for the corporation, the taxation year is a year, other than a year referred to in paragraph c, during which conversion work was carried out by the corporation in respect of the eligible vessel, and the conversion work may reasonably be considered to have been carried out without undue delay since it was undertaken, the aggregate of the costs incurred by the corporation at or before the end of the year for the conversion of the vessel, to the extent that they are reasonable in the circumstances and included, at the end of that year, in the capital cost of the vessel, that may reasonably be attributed to the conversion work carried out in respect of the vessel before the end of that year; or

(c)  where the taxation year is the year during which the corporation completes the conversion of the vessel or, where the eligible vessel is converted on behalf of the corporation, the year during which the corporation takes delivery, under the terms of the contract, of the eligible vessel, or is any of the four taxation years subsequent to that year,

i.  where the corporation converted the eligible vessel for the corporation, the aggregate of the costs incurred by the corporation for the conversion of the vessel, to the extent that they are reasonable in the circumstances, that are included in the capital cost of the vessel, or

ii.  where the corporation caused the eligible vessel to be converted on behalf of the corporation under the terms of an eligible contract, the portion of the total consideration paid by the corporation to its contracting partner pursuant to the contract that may reasonably be attributed to the conversion work carried out in respect of the eligible vessel;

“eligible vessel” of a corporation means a vessel that is constructed or converted by the corporation for the corporation or that the corporation causes to be constructed or converted on behalf of the corporation, and in respect of which a qualification certificate is issued by the Minister of Economic Development, Innovation and Export Trade attesting that the vessel is constructed or converted, as the case may be, in Québec and, where the vessel is constructed on behalf of the corporation, that the corporation is the first acquirer thereof;

“establishment” means an establishment within the meaning assigned to it by section 1;

“exemption period” means an exemption period within the meaning assigned by the first paragraph of section 737.18.29;

“farming” means farming within the meaning assigned by section 1;

“farming corporation” means a corporation whose activities consist mainly in carrying on the business of farming;

“filing-due date” means a filing-due date within the meaning assigned by section 1;

“financial statements” means the financial statements submitted to the shareholders of a corporation or to the members of a partnership or joint venture, as the case may be, and prepared in accordance with generally accepted accounting principles or, where such financial statements have not been prepared, or have not been prepared in accordance with generally accepted accounting principles, such financial statements if they had been prepared in accordance with generally accepted accounting principles;

“fiscal period” means a fiscal period within the meaning assigned by Part I;

“fishing” means fishing within the meaning assigned by section 1;

“government assistance” means assistance from a government, municipality or other public authority, whether as a grant, subsidy, forgivable loan, deduction from tax, investment allowance or as any other form of assistance;

“gross revenue” means the gross revenue within the meaning assigned to it by section 1;

“international financial centre” means an international financial centre within the meaning assigned by section 1;

“loan corporation” means

(a)  a corporation, other than a trust corporation, authorized by the legislation of Canada or of a province to accept deposits from the public;

(b)  a corporation all or substantially all of the assets of which are shares or debts of corporations referred to in Title II of Book III to which it is related;

(c)  a corporation recognized by the Minister under section 1143.1 and whose recognition is in effect;

“long-term debt” means

(a)  in the case of a bank, its subordinated indebtedness, within the meaning assigned by section 2 of the Bank Act (Statutes of Canada, 1991, chapter 46), evidenced by obligations issued for a term of not less than 5 years;

(b)  in the case of a trust corporation, a loan corporation or a corporation trading in securities, its subordinated indebtedness, within the meaning that would be assigned by section 2 of the Bank Act if the definition of that expression in that section were applied with the necessary modifications, evidenced by obligations issued for a term of not less than 5 years; and

(c)  in the case of a savings and credit union, its subordinated indebtedness, within the meaning that would be assigned by section 2 of the Cooperative Credit Associations Act (Statutes of Canada, 1991, chapter 48) if the definition of that expression were applied with the necessary modifications, issued for a term of not less than five years;

“major investment project” means a major investment project within the meaning assigned by the first paragraph of section 737.18.14;

“mineral resource” means a mineral resource within the meaning of section 1, but does not include a bituminous sands deposit, an oil sands deposit or an oil shale deposit;

“Minister” means the Minister of Revenue;

“non-government assistance” means an amount that would be included in computing the individual’s income by reason of paragraph w of section 87, if that paragraph were read without reference to subparagraphs ii and iii thereof;

“OSFI risk-weighting guidelines” means the guidelines, issued by the Superintendent of Financial Institutions of Canada under the authority of section 600 of the Bank Act (Statutes of Canada, 1991, chapter 46), requiring an authorized foreign bank to provide to the Superintendent on a periodic basis a return of the bank’s risk-weighted on-balance sheet assets and off-balance sheet exposures, that apply as of 8 August 2000;

“person” means a person within the meaning assigned by section 1;

“province” means a province within the meaning assigned by section 1;

“qualified corporation” for a taxation year means a corporation, other than a prescribed corporation for the purposes of subparagraph a of the first paragraph of section 1143, that

(a)  in the taxation year, carries on a recognized business all or any part of whose activities are eligible activities carried on in the base period applicable to the corporation in respect of those eligible activities, or is a member of a partnership that, in a fiscal period of the partnership ending in the taxation year, carries on a recognized business all or any part of whose activities are eligible activities carried on in the base period applicable to the partnership in respect of those eligible activities; and

(b)  encloses with its fiscal return it is required to file for the taxation year under section 1000 a copy of the certificate issued in respect of each recognized business carried on by it or carried on by a partnership of which it is a member;

“recognized business” means a recognized business within the meaning assigned by the first paragraph of any of sections 737.18.14, 737.18.29 and 1029.8.36.0.38 or section 1029.8.36.0.38.1, as the case may be;

“regulation” means a regulation made by the Government under this Part;

“savings and credit union” means a savings and credit union within the meaning assigned by section 797;

“specified shareholder” means a specified shareholder within the meaning of section 1;

“surplus” means the surpluses of a corporation and includes any amount by which any property has been valued in excess of its cost;

“taxation year” means a taxation year within the meaning assigned by Part I;

“trust corporation” means a corporation authorized by the legislation of Canada or of a province to provide trustee services.

1972, c. 23, s. 843; 1972, c. 26, s. 78; 1973, c. 17, s. 133; 1974, c. 18, s. 43; 1979, c. 38, s. 27; 1986, c. 15, s. 198; 1987, c. 21, s. 87; 1991, c. 7, s. 14; 1993, c. 16, s. 355; 1995, c. 1, s. 192; 1995, c. 63, s. 237; 1996, c. 39, s. 271; 1997, c. 3, s. 66; 1997, c. 14, s. 269; 1997, c. 31, s. 136; 1997, c. 85, s. 310; 1999, c. 8, s. 20; 1999, c. 83, s. 255; 2000, c. 39, s. 244; 2001, c. 51, s. 221; 2001, c. 51, s. 228; 2001, c. 53, s. 260; 2002, c. 9, s. 129; 2003, c. 9, s. 416; 2003, c. 29, s. 135; 2004, c. 8, s. 205; 2004, c. 21, s. 488; 2005, c. 1, s. 283; 2006, c. 8, s. 31.

2006-03-01

1130. In this Part and in the regulations, unless the context indicates otherwise,

"annual qualification certificate" means an annual qualification certificate within the meaning assigned by the first paragraph of section 737.18.14;

"authorized foreign bank" has the meaning assigned by section 1;

"bank" means a bank within the meaning assigned by section 1;

"base period" means a base period within the meaning assigned by section 737.18.6;

"business" means a business within the meaning assigned to it by section 1;

"Canadian banking business" has the meaning assigned by section 1;

"corporation trading in securities" means a corporation that is a registered securities dealer within the meaning assigned by section 1;

"deduction period" of a corporation in respect of an eligible vessel means

(a)  where the corporation constructs or converts the eligible vessel for the corporation, the period that begins at the beginning of the taxation year of the corporation during which it undertakes the construction work or conversion work in respect of the eligible vessel and that ends at the end of the fourth taxation year following the taxation year during which it completes the construction or conversion, as the case may be, of the eligible vessel; and

(b)  where the eligible vessel is constructed or converted on behalf of the corporation, the period that begins at the beginning of the taxation year of the corporation during which the construction work or conversion work provided for in the contract for the construction or conversion, as the case may be, of the eligible vessel is undertaken in respect of the eligible vessel and that ends at the end of the fourth taxation year following the taxation year during which the corporation takes delivery, under the terms of the contract, of the eligible vessel;

"eligibility period" means an eligibility period within the meaning assigned by section 737.18.14;

"eligible acquisition costs" incurred by a corporation, for a taxation year, in respect of an eligible vessel of the corporation means an amount that is related to a business operated in the year in Québec by the corporation and that is,

(a)  where the eligible vessel is constructed on behalf of the corporation pursuant to a written contract, the taxation year is a year, other than a year referred to in paragraph b, during which construction work provided for in the contract was carried out in respect of the eligible vessel, and the construction work may reasonably be considered to have been carried out without undue delay since it was undertaken, the portion of the consideration provided for in the written contract for the construction of the eligible vessel that was paid by the corporation to its contracting partner in the year or a preceding taxation year and that may reasonably be attributed to the construction work carried out in respect of the vessel before the end of that year;

(a.1)  where the corporation constructs the eligible vessel for the corporation, the taxation year is a year, other than a year referred to in paragraph b, during which construction work was carried out by the corporation in respect of the eligible vessel, and the construction work may reasonably be considered to have been carried out without undue delay since it was undertaken, the aggregate of the costs incurred by the corporation at or before the end of the year for the construction of the vessel, to the extent that they are reasonable in the circumstances and included, at the end of that year, in the capital cost of the vessel, that may reasonably be attributed to the construction work carried out in respect of the vessel before the end of that year; or

(b)  where the taxation year is the year during which the corporation completes the construction of the vessel or, where the eligible vessel is constructed on behalf of the corporation, the year during which the corporation takes delivery, under the terms of the contract, of the eligible vessel, or is any of the four taxation years subsequent to that year, the cost of the vessel to the corporation as shown in its financial statements;

"eligible activities" means eligible activities within the meaning assigned by the first paragraph of any of sections 737.18.6, 737.18.14 and 737.18.29, as the case may be;

"eligible contract" means a written contract in respect of which a qualification certificate has been issued by the Minister of Economic and Regional Development and Research, entered into by a corporation with a person or partnership and under which the corporation entrusts the person or partnership with the carrying out of work in Québec which is related to the conversion of an eligible vessel;

"eligible conversion costs" incurred by a corporation, for a taxation year, in respect of an eligible vessel of the corporation means an amount that is related to a business operated in the year in Québec by the corporation and that is,

(a)  where the eligible vessel is converted on behalf of the corporation pursuant to an eligible contract, the taxation year is a year, other than a year referred to in paragraph c, during which conversion work provided for in the contract was carried out in respect of the eligible vessel, and the conversion work may reasonably be considered to have been carried out without undue delay since it was undertaken, the portion of the consideration provided for in the eligible contract that was paid by the corporation to its contracting partner in the year or a preceding taxation year and that may reasonably be attributed to the conversion work carried out in respect of the vessel before the end of that year;

(b)  where the corporation converts the eligible vessel for the corporation, the taxation year is a year, other than a year referred to in paragraph c, during which conversion work was carried out by the corporation in respect of the eligible vessel, and the conversion work may reasonably be considered to have been carried out without undue delay since it was undertaken, the aggregate of the costs incurred by the corporation at or before the end of the year for the conversion of the vessel, to the extent that they are reasonable in the circumstances and included, at the end of that year, in the capital cost of the vessel, that may reasonably be attributed to the conversion work carried out in respect of the vessel before the end of that year; or

(c)  where the taxation year is the year during which the corporation completes the conversion of the vessel or, where the eligible vessel is converted on behalf of the corporation, the year during which the corporation takes delivery, under the terms of the contract, of the eligible vessel, or is any of the four taxation years subsequent to that year,

i.  where the corporation converted the eligible vessel for the corporation, the aggregate of the costs incurred by the corporation for the conversion of the vessel, to the extent that they are reasonable in the circumstances, that are included in the capital cost of the vessel, or

ii.  where the corporation caused the eligible vessel to be converted on behalf of the corporation under the terms of an eligible contract, the portion of the total consideration paid by the corporation to its contracting partner pursuant to the contract that may reasonably be attributed to the conversion work carried out in respect of the eligible vessel;

"eligible vessel" of a corporation means a vessel that is constructed or converted by the corporation for the corporation or that the corporation causes to be constructed or converted on behalf of the corporation, and in respect of which a qualification certificate is issued by the Minister of Economic and Regional Development and Research attesting that the vessel is constructed or converted, as the case may be, in Québec and, where the vessel is constructed on behalf of the corporation, that the corporation is the first acquirer thereof;

"establishment" means an establishment within the meaning assigned to it by section 1;

"exemption period" means an exemption period within the meaning assigned by the first paragraph of section 737.18.29;

"farming" means farming within the meaning assigned by section 1;

"farming corporation" means a corporation whose activities consist mainly in carrying on the business of farming;

"filing-due date" means a filing-due date within the meaning assigned by section 1;

"financial statements" means the financial statements submitted to the shareholders of a corporation or to the members of a partnership or joint venture, as the case may be, and prepared in accordance with generally accepted accounting principles or, where such financial statements have not been prepared, or have not been prepared in accordance with generally accepted accounting principles, such financial statements if they had been prepared in accordance with generally accepted accounting principles;

"fiscal period" means a fiscal period within the meaning assigned by Part I;

"fishing" means fishing within the meaning assigned by section 1;

"government assistance" means assistance from a government, municipality or other public authority, whether as a grant, subsidy, forgivable loan, deduction from tax, investment allowance or as any other form of assistance;

"gross revenue" means the gross revenue within the meaning assigned to it by section 1;

"international financial centre" means an international financial centre within the meaning assigned by section 1;

"loan corporation" means

(a)  a corporation, other than a trust corporation, authorized by the legislation of Canada or of a province to accept deposits from the public;

(b)  a corporation all or substantially all of the assets of which are shares or debts of corporations referred to in Title II of Book III to which it is related;

(c)  a corporation recognized by the Minister under section 1143.1 and whose recognition is in effect;

"long-term debt" means

(a)  in the case of a bank, its subordinated indebtedness, within the meaning assigned by section 2 of the Bank Act (Statutes of Canada, 1991, chapter 46), evidenced by obligations issued for a term of not less than 5 years;

(b)  in the case of a trust corporation, a loan corporation or a corporation trading in securities, its subordinated indebtedness, within the meaning that would be assigned by section 2 of the Bank Act if the definition of that expression in that section were applied with the necessary modifications, evidenced by obligations issued for a term of not less than 5 years; and

(c)  in the case of a savings and credit union, its subordinated indebtedness, within the meaning that would be assigned by section 2 of the Cooperative Credit Associations Act (Statutes of Canada, 1991, chapter 48) if the definition of that expression were applied with the necessary modifications, issued for a term of not less than five years;

"major investment project" means a major investment project within the meaning assigned by the first paragraph of section 737.18.14;

"mineral resource" means a mineral resource within the meaning of section 1, but does not include a bituminous sands deposit, an oil sands deposit or an oil shale deposit;

"Minister" means the Minister of Revenue;

"non-government assistance" means an amount that would be included in computing the individual’s income by reason of paragraph w of section 87, if that paragraph were read without reference to subparagraphs ii and iii thereof;

"OSFI risk-weighting guidelines" means the guidelines, issued by the Superintendent of Financial Institutions of Canada under the authority of section 600 of the Bank Act (Statutes of Canada, 1991, chapter 46), requiring an authorized foreign bank to provide to the Superintendent on a periodic basis a return of the bank’s risk-weighted on-balance sheet assets and off-balance sheet exposures, that apply as of 8 August 2000;

"person" means a person within the meaning assigned by section 1;

"province" means a province within the meaning assigned by section 1;

"qualified corporation" for a taxation year means a corporation, other than a prescribed corporation for the purposes of subparagraph a of the first paragraph of section 1143, that

(a)  in the taxation year, carries on a recognized business all or any part of whose activities are eligible activities carried on in the base period applicable to the corporation in respect of those eligible activities, or is a member of a partnership that, in a fiscal period of the partnership ending in the taxation year, carries on a recognized business all or any part of whose activities are eligible activities carried on in the base period applicable to the partnership in respect of those eligible activities; and

(b)  encloses with its fiscal return it is required to file for the taxation year under section 1000 a copy of the certificate issued in respect of each recognized business carried on by it or carried on by a partnership of which it is a member;

"recognized business" means a recognized business within the meaning assigned by the first paragraph of any of sections 737.18.14, 737.18.29 and 1029.8.36.0.38 or section 1029.8.36.0.38.1, as the case may be;

"regulation" means a regulation made by the Government under this Part;

"savings and credit union" means a savings and credit union within the meaning assigned by section 797;

"specified shareholder" means a specified shareholder within the meaning of section 1;

"surplus" means the surpluses of a corporation and includes any amount by which any property has been valued in excess of its cost;

"taxation year" means a taxation year within the meaning assigned by Part I;

"trust corporation" means a corporation authorized by the legislation of Canada or of a province to provide trustee services.

1972, c. 23, s. 843; 1972, c. 26, s. 78; 1973, c. 17, s. 133; 1974, c. 18, s. 43; 1979, c. 38, s. 27; 1986, c. 15, s. 198; 1987, c. 21, s. 87; 1991, c. 7, s. 14; 1993, c. 16, s. 355; 1995, c. 1, s. 192; 1995, c. 63, s. 237; 1996, c. 39, s. 271; 1997, c. 3, s. 66; 1997, c. 14, s. 269; 1997, c. 31, s. 136; 1997, c. 85, s. 310; 1999, c. 8, s. 20; 1999, c. 83, s. 255; 2000, c. 39, s. 244; 2001, c. 51, s. 221; 2001, c. 51, s. 228; 2001, c. 53, s. 260; 2002, c. 9, s. 129; 2003, c. 9, s. 416; 2003, c. 29, s. 135; O.C. 222-2004; 2004, c. 8, s. 205; 2004, c. 21, s. 488; 2005, c. 1, s. 283.