I-3 - Taxation Act

Section 979.24 Disposition versions

2015-10-21

979.24. In this Title,

“eligible addition” to a tax-free reserve of a qualified shipowner means qualified property that is allocated by the shipowner to the reserve and does not include an interest or dividend amount attributable to such qualified property or to a capital gain from the disposition of such property;

“eligible withdrawal” from a tax-free reserve of a qualified shipowner means an amount withdrawn by the shipowner from the reserve

(a)  to pay the cost of work to maintain or renovate the shipowner’s qualified vessel fleet, or the cost of qualified vessel shipbuilding work awarded by the shipowner to the operator of a qualified shipyard; or

(b)  to meet the consequences of exceptional and unpredictable events, including financial difficulties likely to jeopardize continuation of the shipowner’s activities, to the extent the amount is reasonable in the circumstances;

“excluded property” of a qualified shipowner means

(a)  depreciable property;

(b)  property, other than depreciable property, used by the qualified shipowner in the course of carrying on its business; and

(c)  a debt obligation, a bond, a debenture, a share of the capital stock of a corporation or another similar obligation issued by a person with whom the qualified shipowner is not dealing at arm’s length;

“qualification certificate” means a certificate issued under section 11.3 of Schedule C to the Act respecting the sectoral parameters of certain fiscal measures (chapter P-5.1);

“qualified property” of a qualified shipowner means property other than excluded property;

“qualified shipyard” means a shipyard operated in Québec by a corporation and that meets the conditions set out in paragraphs 1 to 3 and 5 of section 9.4 of Schedule C to the Act respecting the sectoral parameters of certain fiscal measures;

“qualified shipowner” means a shipowner that is a corporation carrying on a business in Québec and having an establishment in Québec;

“qualified vessel” of a taxpayer means a scow or a vessel described in section 130R165 of the Regulation respecting the Taxation Act (chapter I-3, r. 1) or in paragraph c of class 7 of Schedule B to that Regulation.

2015, c. 21, s. 353.