I-3 - Taxation Act

Section 1029.8.36.0.30 Disposition versions

2006-03-01

1029.8.36.0.30. Where, in a taxation year, in this section referred to as the “repayment year”, a corporation pays, pursuant to a legal obligation, an amount that may reasonably be considered to be repayment of government assistance or non-government assistance that was taken into account for the purpose of computing qualified wages paid by the corporation to an eligible employee in a taxation year, in this section referred to as the “payment year”, and in respect of which the corporation is deemed to have paid an amount to the Minister under section 1029.8.36.0.19 or 1029.8.36.0.20 for a particular taxation year, the corporation is deemed, if it encloses the prescribed form with the fiscal return it is required to file for the repayment year under section 1000, to have paid to the Minister on the corporation’s balance-due day for the repayment year, on account of its tax payable for that year under this Part, an amount equal to the amount by which the amount that it would be deemed to have paid to the Minister for the particular year, in respect of the qualified wages, under section 1029.8.36.0.19 or 1029.8.36.0.20, as the case may be, if any amount of such assistance so repaid at or before the end of the repayment year had reduced, for the payment year, the amount of any government assistance or non-government assistance referred to in paragraph b of the definition of “qualified wages” in the first paragraph of section 1029.8.36.0.17, exceeds the aggregate of

(a)  the amount that the corporation is deemed to have paid to the Minister for the particular year under section 1029.8.36.0.19 or 1029.8.36.0.20, as the case may be, in respect of the qualified wages; and

(b)  any amount that the corporation is deemed to have paid to the Minister for a year preceding the repayment year under this section in respect of an amount of repayment of that assistance.

However, if the payment year begins before 21 December 2001 and the corporation carried on or could carry on its business in an information technology development centre in the particular taxation year, the reference to section 1029.8.36.0.17 in the portion of the first paragraph before subparagraph a shall be read as a reference to section 1029.8.36.0.4, as it read for the payment year.

In addition, if a corporation carried on or could carry on its business in an information technology development centre in a particular taxation year that begins before 21 December 2001 for which the corporation is deemed to have paid an amount to the Minister in respect of qualified wages under section 1029.8.36.0.5 or 1029.8.36.0.5.1, as it read for the particular year, the first paragraph applies, in respect of an amount that may reasonably be considered to be repayment of assistance that was taken into account for the purpose of computing the qualified wages, having regard to the following rules:

(a)  the references to sections 1029.8.36.0.17, 1029.8.36.0.19 and 1029.8.36.0.20, wherever they appear in the portion of the first paragraph before subparagraph b, shall be read respectively as references to sections 1029.8.36.0.4, 1029.8.36.0.5 and 1029.8.36.0.5.1, as they formerly read for the particular year; and

(b)  subparagraph b of the first paragraph shall be read as follows:

“(b) any amount that the corporation is deemed to have paid to the Minister for a taxation year preceding the repayment year in respect of an amount of repayment of that assistance, under this section or section 1029.8.36.0.10, as it read for that preceding taxation year.”

Where the second or third paragraph applies, “eligible employee” and “qualified wages” have, in this section and notwithstanding the first paragraph of section 1029.8.36.0.17, the meaning assigned by section 1029.8.36.0.4, as it read for the payment year.

2000, c. 39, s. 176; 2002, c. 40, s. 147; 2003, c. 9, s. 235.