I-3 - Taxation Act

Section 1029.8.36.0.22.1 Disposition versions

2006-06-13

1029.8.36.0.22.1. For the purpose of determining the amount that a corporation that carries on or may carry on its business in a biotechnology development centre is deemed to have paid to the Minister, on account of its tax payable for a taxation year, in accordance with section 1029.8.36.0.22, each of the rates of 40% referred to in the first paragraph of that section and in subparagraph a of the first paragraph of section 1029.8.36.0.24 is replaced by a rate of 30% if

(a)  the certificate referred to in paragraph c of the definition of “specified corporation” in the first paragraph of section 1029.8.36.0.17, that is issued to the corporation for the year provides for the application of that reduced rate;

(b)  subject to the second paragraph, control of the corporation was acquired at the beginning of the year or of a preceding taxation year, but after 30 March 2004, by a person or a group of persons;

(c)  section 1029.8.36.0.21.2 applied to the corporation for a preceding taxation year for the purpose of determining the amount that the corporation is deemed to have paid to the Minister, on account of its tax payable for that taxation year, in accordance with section 1029.8.36.0.19 or 1029.8.36.0.20; or

(d)  the corporation ceased to be a specified corporation at the beginning of a preceding taxation year by reason of the application of subparagraph iv of paragraph b of the definition of “specified corporation” in the first paragraph of section 1029.8.36.0.17.

The condition set out in subparagraph b of the first paragraph is deemed not to be met if the acquisition of control

(a)  occurs before 1 July 2005 and Investissement Québec certifies that it results from a transaction that was sufficiently advanced on 30 March 2004 and was binding on the parties on that date;

(b)  is by an exempt corporation or a specified corporation, by a person or group of persons that controls such a corporation, or by a group of persons each member of which is such a corporation or a person who, alone or together with other members of the group, controls such a corporation;

(c)  derives from the exercise after 30 March 2004 of one or more rights described in paragraph b of section 20 that were acquired before 31 March 2004; or

(d)  derives from the performance after 30 March 2004 of one or more obligations described in the third paragraph of section 21.3.5 that were contracted before 31 March 2004.

2005, c. 23, s. 169; 2006, c. 13, s. 132.

2006-03-01

1029.8.36.0.22.1. For the purpose of determining the amount that a corporation that carries on or may carry on its business in a biotechnology development centre is deemed to have paid to the Minister, on account of its tax payable for a taxation year, in accordance with section 1029.8.36.0.22, each of the rates of 40% referred to in the first paragraph of that section and in subparagraph a of the first paragraph of section 1029.8.36.0.24 is replaced by a rate of 30% if

(a)  the certificate referred to in paragraph c of the definition of "specified corporation" in the first paragraph of section 1029.8.36.0.17, that is issued to the corporation for the year provides for the application of that reduced rate;

(b)  subject to the second paragraph, control of the corporation was acquired at the beginning of the year or of a preceding taxation year, but after 30 March 2004, by a person or a group of persons;

(c)  section 1029.8.36.0.21.2 applied to the corporation for a preceding taxation year for the purpose of determining the amount that the corporation is deemed to have paid to the Minister, on account of its tax payable for that taxation year, in accordance with section 1029.8.36.0.19 or 1029.8.36.0.20; or

(d)  the corporation ceased to be a specified corporation at the beginning of a preceding taxation year by reason of the application of subparagraph iv of paragraph b of the definition of "specified corporation" in the first paragraph of section 1029.8.36.0.17.

However, the condition set out in subparagraph b of the first paragraph is deemed not to be met if

(a)  the acquisition of control occurs after 30 March 2004 but before 1 July 2005 and Investissement Québec certifies that the acquisition of control results from a transaction that was sufficiently advanced on 30 March 2004 and was binding on the parties on that date;

(b)  the person acquiring control of the corporation or, if control is acquired by a group of persons, each of the persons forming the group, is an exempt corporation or a specified corporation; or

(c)  the acquisition of control derives from the exercise after 30 March 2004 of one or more rights described in paragraph b of section 20 that were acquired before 31 March 2004.

2005, c. 23, s. 169.