I-3 - Taxation Act

Section 737.18.26 Disposition versions

2022-06-08

737.18.26. (Repealed).

2002, c. 40, s. 60; 2004, c. 21, s. 147; 2009, c. 5, s. 256; 2010, c. 25, s. 68; 2022, c. 23, s. 53.

2010-10-27

737.18.26. Subject to the third paragraph, a qualified corporation for a taxation year may deduct, in computing its taxable income for the year, an amount not exceeding the portion of its income for the year that may reasonably be considered as equal to the lesser of the amount determined under section 737.18.26.1 in respect of the corporation for the year and the amount determined by the formula

[75% × (A - B)] × {1 - [(C - $20,000,000)/$10,000,000]} × (1 - D).

In the formula provided for in the first paragraph,

(a)  A is the proportion of the income of the corporation for the year from a qualified business that the number of days in the year that are within the exemption period applicable to the corporation is of the number of days in the year;

(b)  B is the proportion of the loss of the corporation for the year from a qualified business that the number of days in the year that are within the exemption period applicable to the corporation is of the number of days in the year;

(c)  C is the greater of $20,000,000 and the paid-up capital attributed to the corporation for the year determined in accordance with section 737.18.24; and

(d)  D is the corporation’s reduction factor for the year.

A qualified corporation may deduct an amount, under the first paragraph, in computing its taxable income for a taxation year only if

(a)  it encloses the prescribed form containing prescribed information and a copy of the qualification certificate issued to it for the year by Investissement Québec for the purposes of this Title with the fiscal return it is required to file for the year under section 1000; and

(b)  where it would be a qualified corporation, within the meaning of sections 771.5 to 771.7 if that section 771.5 were read without reference to paragraph e thereof, it elected irrevocably, in prescribed form, not to be considered as such a qualified corporation.

2002, c. 40, s. 60; 2004, c. 21, s. 147; 2009, c. 5, s. 256; 2010, c. 25, s. 68.

2009-05-15

737.18.26. Subject to the third paragraph, a qualified corporation for a taxation year may deduct, in computing its taxable income for the year, an amount not exceeding the portion of its income for the year that may reasonably be considered as equal to the amount determined by the formula

[75% × (A - B)] × {1 - [(C - $20,000,000)/$10,000,000]} × (1 - D).

In the formula provided for in the first paragraph,

(a)  A is the proportion of the income of the corporation for the year from a qualified business that the number of days in the year that are within the exemption period applicable to the corporation is of the number of days in the year;

(b)  B is the proportion of the loss of the corporation for the year from a qualified business that the number of days in the year that are within the exemption period applicable to the corporation is of the number of days in the year;

(c)  C is the greater of $20,000,000 and the paid-up capital attributed to the corporation for the year determined in accordance with section 737.18.24; and

(d)  D is the corporation’s reduction factor for the year.

A qualified corporation may deduct an amount, under the first paragraph, in computing its taxable income for a taxation year only if

(a)  it encloses the prescribed form containing prescribed information and a copy of the qualification certificate issued to it for the year by Investissement Québec for the purposes of this Title with the fiscal return it is required to file for the year under section 1000; and

(b)  where it would be a qualified corporation, within the meaning of sections 771.5 to 771.7 if that section 771.5 were read without reference to paragraph e thereof, it elected irrevocably, in prescribed form, not to be considered as such a qualified corporation.

2002, c. 40, s. 60; 2004, c. 21, s. 147; 2009, c. 5, s. 256.

2006-03-01

737.18.26. Subject to the third paragraph, a qualified corporation for a taxation year may deduct, in computing its taxable income for the year, an amount not exceeding the portion of its income for the year that may reasonably be considered as equal to the amount determined by the formula

[75% × (A − B)] × {1 − [(C − $20,000,000) / $10,000,000]}.

In the formula provided for in the first paragraph,

(a)  A is the proportion of the income of the corporation for the year from a qualified business that the number of days in the year that are within the exemption period applicable to the corporation is of the number of days in the year;

(b)  B is the proportion of the loss of the corporation for the year from a qualified business that the number of days in the year that are within the exemption period applicable to the corporation is of the number of days in the year; and

(c)  C is the greater of $20,000,000 and the paid-up capital attributed to the corporation for the year determined in accordance with section 737.18.24.

A qualified corporation may deduct an amount, under the first paragraph, in computing its taxable income for a taxation year only if

(a)  it encloses the prescribed form containing the prescribed information with the fiscal return it is required to file for the year under section 1000; and

(b)  where it would be a qualified corporation, within the meaning of sections 771.5 to 771.7 if that section 771.5 were read without reference to paragraph e thereof, it elected irrevocably, in prescribed form, not to be considered as such a qualified corporation.

2002, c. 40, s. 60; 2004, c. 21, s. 147.