I-3 - Taxation Act

Full text
230.0.0.3.1. For the purposes of subparagraphs b and c of the first paragraph of section 230, expenditures incurred by a taxpayer in a taxation year do not include expenses incurred in the year in respect of salary or wages of a specified employee of the taxpayer to the extent that those expenses exceed the amount determined by the formula

A × B / 365.

In the formula provided for in the first paragraph,
(a)  A is 5 times the amount of the Maximum Pensionable Earnings, as determined under section 40 of the Act respecting the Québec Pension Plan (chapter R-9), for the calendar year in which the taxation year ends; and
(b)  B is the number of days in the taxation year during which the employee is a specified employee of the taxpayer.
1998, c. 16, s. 103.