I-3 - Taxation Act

Section 1029.8.36.0.0.5.1 Disposition versions

2017-12-07

1029.8.36.0.0.5.1. If, at a particular time, a corporation enters into a contract with a person or partnership with whom it is not, at that time, dealing at arm’s length, under which the corporation incurs production costs as part of the production of a property that is a qualified production and if, in the opinion of the Minister, one of the purposes of the existence of the contract is to increase the particular amount that the corporation would be deemed to have paid to the Minister, in respect of the property, on account of its tax payable for a taxation year under subparagraph a.1 of the first paragraph of section 1029.8.36.0.0.5 if such a contract had been entered into with a person or partnership with whom it is dealing at arm’s length, the Minister may determine that the particular amount is the amount that the corporation is deemed to have paid to the Minister, in respect of the property, on account of its tax payable for that year under that subparagraph a.1.

For the purposes of the first paragraph, in determining whether a corporation and a partnership are not dealing at arm’s length at the particular time, the partnership’s fiscal period is deemed to end at the particular time and the partnership is deemed, at the particular time, to be a corporation all the voting shares of which are owned by each member of the partnership in a proportion equal to the agreed proportion in respect of the member for that fiscal period.

2010, c. 25, s. 132; 2017, c. 29, s. 177.

2010-10-27

1029.8.36.0.0.5.1. If, at a particular time, a corporation enters into a contract for services rendered in Québec as part of the production of a property that is a qualified production with a person or partnership with which it is not, at that time, dealing at arm’s length, and if, in the opinion of the Minister, one of the purposes of the existence of the contract is to increase the particular amount that the corporation would be deemed to have paid to the Minister, in respect of the property, on account of its tax payable for a taxation year under subparagraph a.1 of the first paragraph of section 1029.8.36.0.0.5 if a contract for the same services had been entered into with a person or partnership with which it is dealing at arm’s length, the Minister may determine that the particular amount is the amount that the corporation is deemed to have paid to the Minister, in respect of the property, on account of its tax payable for that year under that subparagraph a.1.

For the purposes of the first paragraph, in determining whether a corporation and a partnership are not dealing at arm’s length at the particular time, the partnership’s fiscal period is deemed to end at the particular time and the partnership is deemed, at the particular time, to be a corporation all the voting shares of which are owned by each member of the partnership in a proportion equal to the agreed proportion in respect of the member for that fiscal period.

2010, c. 25, s. 132.