I-3 - Taxation Act

Section 737.18.17.8 Disposition versions

2021-12-10

737.18.17.8. Subject to the second, fourth and fifth paragraphs, a corporation’s tax assistance limit in relation to a large investment project is 15% of its total qualified capital investments on the date of the end of the start-up period of the large investment project, unless the corporation acquired all or substantially all of the recognized business in relation to the project, in which case it is the amount that was transferred to the corporation pursuant to the agreement referred to in section 737.18.17.12 in respect of the acquisition.

In the case of a deemed large investment project within the meaning of section 737.18.17.1.1, the corporation’s tax assistance limit in relation to the project is, for a particular taxation year,

(a)  where the particular year ends before the date of the beginning of the tax-free period in respect of the second large investment project, the corporation’s tax assistance limit in relation to the first large investment project;

(b)  where the particular year begins before the date of the beginning of the tax-free period in respect of the second large investment project and ends on or after that date, the amount determined by the formula

A + (B × C); or

(c)  where the particular year begins on or after the date of the beginning of the tax-free period in respect of the second large investment project, the amount determined by the formula

A + B.

In the formulas in the second paragraph,

(a)  A is the corporation’s tax assistance limit in relation to the first large investment project;

(b)  B is the corporation’s tax assistance limit in relation to the second large investment project; and

(c)  C is the proportion that the number of days in the part of the particular year that begins on the date of the beginning of the tax-free period in respect of the second large investment project is of the number of days in that year.

Where the corporation has begun to carry on the recognized business in relation to the large investment project in a taxation year that ends before the date of the end of the start-up period of the project, the corporation’s tax assistance limit in relation to the project, for any taxation year that ends before that date, is to be computed, under the first paragraph, on the date on which that year ends.

Where the corporation has acquired all or substantially all of the recognized business in relation to the large investment project before the date of the end of the start-up period of the project, the corporation’s tax assistance limit in relation to the project, for any taxation year that ends on or after that date, is to be increased by an amount equal to the product obtained by multiplying by 15% the amount that would be the corporation’s total qualified capital investments on the date of the end of the start-up period if the definition of “total qualified capital investments” in the first paragraph of section 737.18.17.1 were read as if “from the beginning of the carrying out of the large investment project” were replaced by “from the time the corporation or partnership acquired the recognized business in relation to the large investment project”.

2015, c. 21, s. 260; 2019, c. 14, s. 203; 2021, c. 36, s. 75.

2019-06-19

737.18.17.8. Subject to the second paragraph, a corporation’s tax assistance limit in relation to a large investment project is 15% of its total qualified capital investments on the date of the beginning of the tax-free period in respect of the large investment project, unless the corporation acquired all or substantially all of the recognized business in relation to the project, in which case it is the amount that was transferred to the corporation pursuant to the agreement referred to in section 737.18.17.12 in respect of the acquisition.

In the case of a deemed large investment project within the meaning of section 737.18.17.1.1, the corporation’s tax assistance limit in relation to the project is, for a particular taxation year,

(a)  where the particular year ends before the date of the beginning of the tax-free period in respect of the second large investment project, the corporation’s tax assistance limit in relation to the first large investment project;

(b)  where the particular year begins before the date of the beginning of the tax-free period in respect of the second large investment project and ends on or after that date, the amount determined by the formula

A + (B × C); or

(c)  where the particular year begins on or after the date of the beginning of the tax-free period in respect of the second large investment project, the amount determined by the formula

A + B.

In the formulas in the second paragraph,

(a)  A is the corporation’s tax assistance limit in relation to the first large investment project;

(b)  B is the corporation’s tax assistance limit in relation to the second large investment project; and

(c)  C is the proportion that the number of days in the part of the particular year that begins on the date of the beginning of the tax-free period in respect of the second large investment project is of the number of days in that year.

2015, c. 21, s. 260; 2019, c. 14, s. 203.

2015-10-21

737.18.17.8. A corporation’s tax assistance limit in relation to a large investment project is 15% of its total qualified capital investments on the date of the beginning of the tax-free period in respect of the large investment project, unless the corporation acquired all or substantially all of the recognized business in relation to the project, in which case it is the amount that was transferred to the corporation pursuant to the agreement referred to in section 737.18.17.12 in respect of the acquisition.

2015, c. 21, s. 260.