I-3 - Taxation Act

Section 1175.19.2 Disposition versions

2022-06-08

1175.19.2. Every corporation that, in relation to the aggregate of the costs referred to in the first paragraph of section 1135.1 for any taxation year and incurred in respect of property described in any of sections 1135.3 to 1135.3.1, has deducted, under section 1135.1 or 1135.2, an amount in computing its tax otherwise payable under Part IV for a particular taxation year, shall pay the tax computed under the second paragraph, for a subsequent taxation year, in this section referred to as the “repayment year”, if

(a)  an amount relating to the portion of those costs that was incurred by the corporation is, in the repayment year, directly or indirectly, refunded or otherwise paid to the corporation or allocated to a payment to be made by the corporation; or

(b)  an amount relating to the portion of those costs that was incurred by a partnership of which the corporation is a member at the end of that partnership’s fiscal period that ends in the repayment year, is, in that fiscal period, directly or indirectly, refunded or otherwise paid to the partnership or corporation or allocated to a payment to be made by the partnership or corporation.

The tax to which the first paragraph refers is equal to the amount by which the aggregate of all amounts each of which is, in relation to the costs referred to in the first paragraph, an amount that the corporation would have deducted under section 1135.1 or 1135.2 for a particular taxation year preceding the repayment year, if the corporation’s share of the income or loss of any partnership of which it was a member at the end of the partnership’s fiscal period that ends in the particular taxation year and the partnership’s income or loss for that fiscal period had been the same as those for the partnership’s fiscal period that ends in the repayment year, exceeds the total of

(a)  the aggregate of all amounts each of which is, in relation to those costs, an amount that the corporation would have deducted under section 1135.1 or 1135.2 for a particular taxation year preceding the repayment year, if

i.  any amount that is, at or before the end of the repayment year, so refunded, paid or allocated, in relation to the portion of those costs that was incurred by the corporation, had been refunded, paid or allocated in the particular taxation year,

ii.  any amount that is, at or before the end of the fiscal period of a partnership of which the taxpayer is a member ending in the repayment year, so refunded, paid or allocated, in relation to the portion of those costs that was incurred by the partnership, had been refunded, paid or allocated in the partnership’s fiscal period that ends in the particular taxation year, and

iii.  the corporation’s share of the income or loss of any partnership for the partnership’s fiscal period that ends in the particular taxation year and the partnership’s income or loss for that fiscal period had been the same as those for the partnership’s fiscal period that ends in the repayment year; and

(b)  the aggregate of all amounts each of which is a tax that the corporation should have paid to the Minister under this section, in relation to those costs, for a taxation year preceding the repayment year, if the corporation’s share of the income or loss of any partnership for the partnership’s fiscal period that ends in the preceding taxation year and the partnership’s income or loss for that fiscal period had been the same as those for the partnership’s fiscal period that ends in the repayment year.

For the purposes of the second paragraph, an amount referred to in subparagraph ii of subparagraph a of that paragraph that is refunded or otherwise paid to the corporation or allocated to a payment to be made by the corporation is deemed to be an amount

(a)  that is refunded or otherwise paid to the partnership or allocated to a payment to be made by the partnership; and

(b)  that is determined by multiplying the amount refunded, paid or allocated by the reciprocal of the agreed proportion in respect of the corporation for the partnership’s fiscal period that ends in the repayment year.

2005, c. 38, s. 333; 2006, c. 36, s. 265; 2007, c. 12, s. 289; 2009, c. 5, s. 567; 2009, c. 15, s. 448; 2022, c. 23, s. 153.

2009-06-04

1175.19.2. Every corporation that, in relation to the aggregate of the costs referred to in the first paragraph of section 1135.1 for any taxation year and incurred in respect of property described in any of sections 1135.3 to 1135.3.1, has deducted, under section 1135.1 or 1135.2, an amount in computing its tax otherwise payable under Part IV for a particular taxation year, shall pay the tax computed under the second paragraph, for a subsequent taxation year, in this section referred to as the “repayment year”, if

(a)  an amount relating to the portion of those costs that was incurred by the corporation is, in the repayment year, directly or indirectly, refunded or otherwise paid to the corporation or allocated to a payment to be made by the corporation; or

(b)  an amount relating to the portion of those costs that was incurred by a partnership of which the corporation is a member at the end of that partnership’s fiscal period that ends in the repayment year, is, in that fiscal period, directly or indirectly, refunded or otherwise paid to the partnership or corporation or allocated to a payment to be made by the partnership or corporation.

The tax to which the first paragraph refers is equal to the amount by which the aggregate of all amounts each of which is, in relation to the costs referred to in the first paragraph, an amount that the corporation would have deducted under section 1135.1 or 1135.2 for a particular taxation year preceding the repayment year, if the corporation’s share of the income or loss of any partnership of which it was a member at the end of the partnership’s fiscal period that ends in the particular taxation year and the partnership’s income or loss for that fiscal period had been the same as those for the partnership’s fiscal period that ends in the repayment year, exceeds the total of

(a)  the aggregate of all amounts each of which is, in relation to those costs, an amount that the corporation would have deducted under section 1135.1 or 1135.2 for a particular taxation year preceding the repayment year, if

i.  any amount that is, at or before the end of the repayment year, so refunded, paid or allocated, in relation to the portion of those costs that was incurred by the corporation, had been refunded, paid or allocated in the particular taxation year,

ii.  any amount that is, at or before the end of the fiscal period of a partnership of which the taxpayer is a member ending in the repayment year, so refunded, paid or allocated, in relation to the portion of those costs that was incurred by the partnership, had been refunded, paid or allocated in the partnership’s fiscal period that ends in the particular taxation year, and

iii.  the corporation’s share of the income or loss of any partnership for the partnership’s fiscal period that ends in the particular taxation year and the partnership’s income or loss for that fiscal period had been the same as those for the partnership’s fiscal period that ends in the repayment year; and

(b)  the aggregate of all amounts each of which is a tax that the corporation should have paid to the Minister under this section, in relation to those costs, for a taxation year preceding the repayment year, if the corporation’s share of the income or loss of any partnership for the partnership’s fiscal period that ends in the preceding taxation year and the partnership’s income or loss for that fiscal period had been the same as those for the partnership’s fiscal period that ends in the repayment year.

For the purposes of the second paragraph, an amount referred to in subparagraph ii of subparagraph a of that paragraph that is refunded or otherwise paid to the corporation or allocated to a payment to be made by the corporation is deemed to be an amount

(a)  that is refunded or otherwise paid to the partnership or allocated to a payment to be made by the partnership; and

(b)  that is determined by multiplying the amount refunded, paid or allocated, otherwise determined, by the reciprocal of the agreed proportion in respect of the corporation for the partnership’s fiscal period that ends in the repayment year.

2005, c. 38, s. 333; 2006, c. 36, s. 265; 2007, c. 12, s. 289; 2009, c. 5, s. 567; 2009, c. 15, s. 448.

2009-05-15

1175.19.2. Every corporation that, in relation to the aggregate of the costs referred to in the first paragraph of section 1135.1 for any taxation year and incurred in respect of property described in any of sections 1135.3 to 1135.3.1, has deducted, under section 1135.1 or 1135.2, an amount in computing its tax otherwise payable under Part IV for a particular taxation year, shall pay the tax computed under the second paragraph, for a subsequent taxation year, in this section referred to as the “repayment year”, if

(a)  an amount relating to the portion of those costs that was incurred by the corporation is, in the repayment year, directly or indirectly, refunded or otherwise paid to the corporation or allocated to a payment to be made by the corporation; or

(b)  an amount relating to the portion of those costs that was incurred by a partnership of which the corporation is a member at the end of that partnership’s fiscal period that ends in the repayment year, is, in that fiscal period, directly or indirectly, refunded or otherwise paid to the partnership or corporation or allocated to a payment to be made by the partnership or corporation.

The tax to which the first paragraph refers is equal to the amount by which the aggregate of all amounts each of which is, in relation to the costs referred to in the first paragraph, an amount that the corporation would have deducted under section 1135.1 or 1135.2 for a particular taxation year preceding the repayment year, if the corporation’s share of the income or loss of any partnership of which it was a member at the end of the partnership’s fiscal period that ends in the particular taxation year and the partnership’s income or loss for that fiscal period had been the same as those for the partnership’s fiscal period that ends in the repayment year, exceeds the total of

(a)  the aggregate of all amounts each of which is, in relation to those costs, an amount that the corporation would have deducted under section 1135.1 or 1135.2 for a particular taxation year preceding the repayment year, if

i.  any amount that is, at or before the end of the repayment year, so refunded, paid or allocated, in relation to the portion of those costs that was incurred by the corporation, had been refunded, paid or allocated in the particular taxation year,

ii.  any amount that is, at or before the end of the fiscal period of a partnership of which the taxpayer is a member ending in the repayment year, so refunded, paid or allocated, in relation to the portion of those costs that was incurred by the partnership, had been refunded, paid or allocated in the partnership’s fiscal period that ends in the particular taxation year, and

iii.  the corporation’s share of the income or loss of any partnership for the partnership’s fiscal period that ends in the particular taxation year and the partnership’s income or loss for that fiscal period had been the same as those for the partnership’s fiscal period that ends in the repayment year; and

(b)  the aggregate of all amounts each of which is a tax that the corporation should have paid to the Minister under this section, in relation to those costs, for a taxation year preceding the repayment year, if the corporation’s share of the income or loss of any partnership for the partnership’s fiscal period that ends in the preceding taxation year and the partnership’s income or loss for that fiscal period had been the same as those for the partnership’s fiscal period that ends in the repayment year.

For the purposes of the second paragraph, an amount referred to in subparagraph ii of subparagraph a of that paragraph that is refunded or otherwise paid to the corporation or allocated to a payment to be made by the corporation is deemed to be an amount

(a)  that is refunded or otherwise paid to the partnership or allocated to a payment to be made by the partnership; and

(b)  that is determined by multiplying the amount refunded, paid or allocated, otherwise determined, by the proportion that the income or loss of the partnership for the partnership’s fiscal period that ends in the repayment year is of the corporation’s share of that income or loss, on the assumption that, if the income and loss of the partnership for that fiscal period are nil, that income is equal to $1,000,000.

2005, c. 38, s. 333; 2006, c. 36, s. 265; 2007, c. 12, s. 289; 2009, c. 5, s. 567.

2007-11-07

1175.19.2. Every corporation that, in relation to the aggregate of the costs referred to in the first paragraph of section 1135.1 for any taxation year and incurred in respect of property described in section 1135.3 or 1135.3.1, has deducted, under section 1135.1 or 1135.2, an amount in computing its tax otherwise payable under Part IV for a particular taxation year, shall pay the tax computed under the second paragraph, for a subsequent taxation year, in this section referred to as the “repayment year”, if

(a)  an amount relating to the portion of those costs that was incurred by the corporation is, in the repayment year, directly or indirectly, refunded or otherwise paid to the corporation or allocated to a payment to be made by the corporation; or

(b)  an amount relating to the portion of those costs that was incurred by a partnership of which the corporation is a member at the end of that partnership’s fiscal period that ends in the repayment year, is, in that fiscal period, directly or indirectly, refunded or otherwise paid to the partnership or corporation or allocated to a payment to be made by the partnership or corporation.

The tax to which the first paragraph refers is equal to the amount by which the aggregate of all amounts each of which is, in relation to the costs referred to in the first paragraph, an amount that the corporation would have deducted under section 1135.1 or 1135.2 for a particular taxation year preceding the repayment year, if the corporation’s share of the income or loss of any partnership of which it was a member at the end of the partnership’s fiscal period that ends in the particular taxation year and the partnership’s income or loss for that fiscal period had been the same as those for the partnership’s fiscal period that ends in the repayment year, exceeds the total of

(a)  the aggregate of all amounts each of which is, in relation to those costs, an amount that the corporation would have deducted under section 1135.1 or 1135.2 for a particular taxation year preceding the repayment year, if

i.  any amount that is, at or before the end of the repayment year, so refunded, paid or allocated, in relation to the portion of those costs that was incurred by the corporation, had been refunded, paid or allocated in the particular taxation year,

ii.  any amount that is, at or before the end of the fiscal period of a partnership of which the taxpayer is a member ending in the repayment year, so refunded, paid or allocated, in relation to the portion of those costs that was incurred by the partnership, had been refunded, paid or allocated in the partnership’s fiscal period that ends in the particular taxation year, and

iii.  the corporation’s share of the income or loss of any partnership for the partnership’s fiscal period that ends in the particular taxation year and the partnership’s income or loss for that fiscal period had been the same as those for the partnership’s fiscal period that ends in the repayment year; and

(b)  the aggregate of all amounts each of which is a tax that the corporation should have paid to the Minister under this section, in relation to those costs, for a taxation year preceding the repayment year, if the corporation’s share of the income or loss of any partnership for the partnership’s fiscal period that ends in the preceding taxation year and the partnership’s income or loss for that fiscal period had been the same as those for the partnership’s fiscal period that ends in the repayment year.

For the purposes of the second paragraph, an amount referred to in subparagraph ii of subparagraph a of that paragraph that is refunded or otherwise paid to the corporation or allocated to a payment to be made by the corporation is deemed to be an amount

(a)  that is refunded or otherwise paid to the partnership or allocated to a payment to be made by the partnership; and

(b)  that is determined by multiplying the amount refunded, paid or allocated, otherwise determined, by the proportion that the income or loss of the partnership for the partnership’s fiscal period that ends in the repayment year is of the corporation’s share of that income or loss, on the assumption that, if the income and loss of the partnership for that fiscal period are nil, that income is equal to $1,000,000.

2005, c. 38, s. 333; 2006, c. 36, s. 265; 2007, c. 12, s. 289.

2006-12-06

1175.19.2. Any corporation that, in relation to costs incurred in respect of property described in section 1135.3, has deducted for any taxation year, under section 1135.1 or 1135.2, an amount in computing its tax otherwise payable under Part IV for the year, shall pay, for a particular taxation year, tax equal to

(a)  the amount by which the aggregate of all amounts each of which is an amount deducted by the corporation under section 1135.1 or 1135.2, in computing its tax payable under Part IV, in respect of the costs, for a taxation year preceding the particular year, exceeds the aggregate of all amounts each of which is, in respect of the corporation, an amount determined under subparagraph b, in relation to the costs, for a taxation year preceding the particular year, if at any time between the corporation’s filing-due date for the taxation year preceding the particular year and the day after the day that is the end of the period of 730 days following the beginning of the use of the property by the first purchaser or by a subsequent purchaser of the property that acquired the property in any of the circumstances in which section 130R71 of the Regulation respecting the Taxation Act (R.R.Q., 1981, chapter I-3, r.1) applies or, if it precedes the day that is the end of that period, the filing-due date, for the particular year, of the purchaser that is the owner of the property at the end of the particular year, the property ceases, otherwise than by reason of the loss or involuntary destruction of the property by fire, theft or water or of a major breakdown of the property, to be used solely in Québec to earn income from a business carried on

i.  by the first purchaser of the property and if that time is also in the portion of that period in which the first purchaser owns the property, or

ii.  by a subsequent purchaser of the property that acquired the property in any of the circumstances in which section 130R71 of the Regulation respecting the Taxation Act applies, and if that time also is in the portion of that period in which the subsequent purchaser owns the property; or

(b)  if subparagraph a does not apply in the particular year or a preceding taxation year in relation to the costs, to 5% of the aggregate of

i.  if in the particular year the corporation has received, is entitled to receive or may reasonably expect to receive, on or before the corporation’s filing-due date for that particular year, an amount of government assistance or non-government assistance, attributable to such costs, other than such an amount of assistance that reduced the amount determined under subparagraph i or ii of subparagraph a of the first paragraph of section 1135.1 or under the first paragraph of section 1135.2, in respect of the corporation for the purpose of determining the amount that the corporation was entitled to deduct, in respect of the costs, in computing its tax payable under Part IV for a taxation year preceding the particular year, to the lesser of the amount of that assistance and the amount by which the portion of the costs in respect of which the corporation has deducted an amount under section 1135.1 or 1135.2 in computing its tax payable under Part IV for a taxation year preceding the particular year, exceeds the aggregate of all amounts each of which is an amount determined, in respect of the costs, under this subparagraph for a taxation year preceding the particular taxation year, in relation to the corporation,

ii.  if a partnership of which the corporation is a member at the end of a fiscal period of the partnership that ends in the particular taxation year, has received, is entitled to receive or may reasonably expect to receive, on or before the day that is six months after the end of that fiscal period, an amount of government assistance or non-government assistance, attributable to such costs, other than such an amount of assistance that reduced the amount determined under subparagraph ii of subparagraph a of the first paragraph of section 1135.1 or under the first paragraph of section 1135.2, in respect of the partnership for the purpose of determining the amount that the corporation was entitled to deduct, in respect of the costs, in computing its tax payable under Part IV for a taxation year preceding the particular year, to the lesser of the corporation’s share of the amount of that assistance and the amount by which the portion of the costs in respect of which the corporation has deducted an amount under section 1135.1 or 1135.2 in computing its tax payable under Part IV for a taxation year preceding the particular year, exceeds the aggregate of all amounts each of which is an amount determined, in respect of the costs, under this subparagraph for a taxation year preceding the particular taxation year, in relation to the corporation, and

iii.  if in the particular year a person or partnership has obtained, is entitled to obtain or may reasonably expect to obtain, on or before the corporation’s filing-due date for that particular year, a benefit or advantage attributable to such costs, except a benefit or advantage referred to in the second paragraph, whether in the form of a reimbursement, compensation, guarantee, in the form of proceeds of disposition of property which exceed the fair market value of the property, or in any other form or manner, to the lesser of, if the costs were incurred by the corporation, the amount of that benefit or advantage or, if the costs were incurred by a partnership of which the corporation is a member at the end of the fiscal period of the partnership that ends in the particular taxation year, the corporation’s share of the amount of that benefit or advantage and the amount by which the portion of the costs in respect of which the corporation has deducted an amount, under section 1135.1 or 1135.2, in computing its tax payable under Part IV, for a taxation year preceding the particular year exceeds the aggregate of all amounts each of which is an amount determined, in respect of the costs, under this subparagraph for a taxation year preceding the particular taxation year, in relation to the corporation.

A benefit or advantage to which subparagraph iii of subparagraph b of the first paragraph refers means a benefit or advantage

(a)  that may reasonably be attributed to the acquisition of the property; or

(b)  that reduced, in accordance with section 1135.4, the amount determined under subparagraph i or ii of subparagraph a of the first paragraph of section 1135.1 or under the first paragraph of section 1135.2, in respect of the corporation or of the partnership for the purpose of determining the amount that the corporation was entitled to deduct, in respect of the costs, in computing its tax payable under this Part for a taxation year preceding the particular year.

For the purposes of subparagraphs ii and iii of subparagraph b of the first paragraph, the share of a corporation that is a member of a partnership, for a fiscal period of that partnership, of an amount is equal to the proportion of that amount that the corporation’s share of the income or loss of the partnership for that fiscal period is of the income or loss of the partnership for that fiscal period, on the assumption that, if the income and loss of the partnership for that fiscal period are nil, the partnership’s income for that fiscal period is equal to $1,000,000.

2005, c. 38, s. 333; 2006, c. 36, s. 265.

2006-03-01

1175.19.2. Any corporation that, in relation to costs incurred in respect of property described in section 1135.3, has deducted for any taxation year, under section 1135.1 or 1135.2, an amount in computing its tax otherwise payable under Part IV for the year, shall pay, for a particular taxation year, tax equal to

(a)  the amount by which the aggregate of all amounts each of which is an amount deducted by the corporation under section 1135.1 or 1135.2, in computing its tax payable under Part IV, in respect of the costs, for a taxation year preceding the particular year, exceeds the aggregate of all amounts each of which is, in respect of the corporation, an amount determined under subparagraph b, in relation to the costs, for a taxation year preceding the particular year, if at any time between the corporation’s filing-due date for the taxation year preceding the particular year and the day after the day that is the end of the period of 730 days following the beginning of the use of the property by the first purchaser or by a subsequent purchaser of the property that acquired the property in any of the circumstances in which section 130R71 of the Regulation respecting the Taxation Act (R.R.Q., 1981, chapter I-3, r.1) applies or, if it precedes the day that is the end of that period, the filing-due date, for the particular year, of the purchaser that is the owner of the property at the end of the particular year, the property ceases, otherwise than by reason of the loss or involuntary destruction of the property by fire, theft or water or of a major breakdown of the property, to be used solely in Québec to earn income from a business carried on

i.  by the first purchaser of the property and if that time is also in the portion of that period in which the first purchaser owns the property, or

ii.  by a subsequent purchaser of the property that acquired the property in any of the circumstances in which section 130R71 of the Regulation respecting the Taxation Act applies, and if that time also is in the portion of that period in which the subsequent purchaser owns the property; or

(b)  if subparagraph a does not apply in the particular year or a preceding taxation year in relation to the costs, to 5% of the aggregate of

i.  if in the particular year the corporation has received, is entitled to receive or may reasonably expect to receive, on or before the corporation’s filing-due date for that particular year, an amount of government assistance or non-government assistance, attributable to such costs, other than such an amount of assistance that reduced the amount determined under subparagraph a or b of the first paragraph of section 1135.1 or under the second paragraph of section 1135.2, in respect of the corporation for the purpose of determining the amount that the corporation was entitled to deduct, in respect of the costs, in computing its tax payable under Part IV for a taxation year preceding the particular year, to the lesser of the amount of that assistance and the amount by which the portion of the costs in respect of which the corporation has deducted an amount under section 1135.1 or 1135.2 in computing its tax payable under Part IV for a taxation year preceding the particular year, exceeds the aggregate of all amounts each of which is an amount determined, in respect of the costs, under this subparagraph for a taxation year preceding the particular taxation year, in relation to the corporation,

ii.  if a partnership of which the corporation is a member at the end of a fiscal period of the partnership that ends in the particular taxation year, has received, is entitled to receive or may reasonably expect to receive, on or before the day that is six months after the end of that fiscal period, an amount of government assistance or non-government assistance, attributable to such costs, other than such an amount of assistance that reduced the amount determined under subparagraph b of the first paragraph of section 1135.1 or under the second paragraph of section 1135.2, in respect of the partnership for the purpose of determining the amount that the corporation was entitled to deduct, in respect of the costs, in computing its tax payable under Part IV for a taxation year preceding the particular year, to the lesser of the corporation’s share of the amount of that assistance and the amount by which the portion of the costs in respect of which the corporation has deducted an amount under section 1135.1 or 1135.2 in computing its tax payable under Part IV for a taxation year preceding the particular year, exceeds the aggregate of all amounts each of which is an amount determined, in respect of the costs, under this subparagraph for a taxation year preceding the particular taxation year, in relation to the corporation, and

iii.  if in the particular year a person or partnership has obtained, is entitled to obtain or may reasonably expect to obtain, on or before the corporation’s filing-due date for that particular year, a benefit or advantage attributable to such costs, except a benefit or advantage referred to in the second paragraph, whether in the form of a reimbursement, compensation, guarantee, in the form of proceeds of disposition of property which exceed the fair market value of the property, or in any other form or manner, to the lesser of, if the costs were incurred by the corporation, the amount of that benefit or advantage or, if the costs were incurred by a partnership of which the corporation is a member at the end of the fiscal period of the partnership that ends in the particular taxation year, the corporation’s share of the amount of that benefit or advantage and the amount by which the portion of the costs in respect of which the corporation has deducted an amount, under section 1135.1 or 1135.2, in computing its tax payable under Part IV, for a taxation year preceding the particular year exceeds the aggregate of all amounts each of which is an amount determined, in respect of the costs, under this subparagraph for a taxation year preceding the particular taxation year, in relation to the corporation.

A benefit or advantage to which subparagraph iii of subparagraph b of the first paragraph refers means a benefit or advantage

(a)  that may reasonably be attributed to the acquisition of the property; or

(b)  that reduced, in accordance with section 1135.4, the amount determined under subparagraph a or b of the first paragraph of section 1135.1 or under the second paragraph of section 1135.2, in respect of the corporation or of the partnership for the purpose of determining the amount that the corporation was entitled to deduct, in respect of the costs, in computing its tax payable under this Part for a taxation year preceding the particular year.

For the purposes of subparagraphs ii and iii of subparagraph b of the first paragraph, the share of a corporation that is a member of a partnership, for a fiscal period of that partnership, of an amount is equal to the proportion of that amount that the corporation’s share of the income or loss of the partnership for that fiscal period is of the income or loss of the partnership for that fiscal period, on the assumption that, if the income and loss of the partnership for that fiscal period are nil, the partnership’s income for that fiscal period is equal to $1,000,000.

2005, c. 38, s. 333.