I-3 - Taxation Act

Section 1029.8.36.0.3.50 Disposition versions

2021-06-04

1029.8.36.0.3.50. (Repealed).

2002, c. 9, s. 74; 2021, c. 18, s. 119.

2006-03-01

1029.8.36.0.3.50. The rate to which the definition of “modified rate” in the first paragraph of section 1029.8.36.0.3.46 refers for a particular year of operation of a corporation that is subsequent to its fifth year of operation is equal to the rate, not exceeding 35%, determined by the formula

[2 × (A − B) / C] × 35%.

In the formula provided for in the first paragraph,

(a)  A is the aggregate of all amounts each of which is the wages that the corporation and an associated employer of the corporation at the end of the calendar year that ended immediately before the date of the beginning of the particular year of operation of the corporation have paid in that calendar year to an employee who reports for work at an establishment of the corporation or the associated employer situated in Québec ;

(b)  B is the aggregate of all amounts each of which is the wages that the corporation and an associated employer of the corporation at the end of the calendar year that ended immediately before the date of the beginning of the particular year of operation of the corporation have paid in the base calendar year of the corporation to an employee who reports for work at an establishment of the corporation or the associated employer situated in Québec ; and

(c)  C is the aggregate of all amounts each of which is the wages that the corporation and an associated employer of the corporation at the end of the calendar year that ended immediately before the date of the beginning of the particular year of operation of the corporation have paid in respect of an eligible employee of the corporation, while the employee qualified as an eligible employee, in that calendar year, without exceeding $35,714.29.

For the purposes of subparagraphs a and b of the second paragraph, the following rules apply :

(a)  where, during a period within a calendar year, an employee reports for work at an establishment of the employer situated in Québec and at an establishment of the employer situated outside Québec, the employee is, for that period, deemed

i.  except if subparagraph ii applies, to report for work only at the establishment situated in Québec, and

ii.  to report for work only at the establishment situated outside Québec if, during that period, the employee reports for work mainly at an establishment of the employer situated outside Québec ; and

(b)  where, during a period within a calendar year, an employee is not required to report for work at an establishment of the employer and the employee’s wages in relation to that period are paid from such an establishment situated in Québec, the employee is deemed to report for work at that establishment if the duties performed by the employee during that period are performed mainly in Québec.

For the purposes of subparagraph b of the second paragraph, where the date of the beginning of the operations of a corporation is in the calendar year 2000, the amount determined under that subparagraph is deemed to be equal to the amount obtained by multiplying by 400% the amount equal to the amount by which the aggregate of all amounts each of which is the wages that the corporation and an associated employer of the corporation at the end of the calendar year that ended immediately before the date of the beginning of the particular year of operation of the corporation paid in the first three months of the calendar year 2000 to an employee who reports for work at an establishment of the corporation or the associated employer situated in Québec, exceeds the amount equal to the amount obtained by multiplying by 75% the aggregate of all amounts each of which is an amount paid by the corporation and the associated employer of the corporation in the first three months of the calendar year 2000 as a bonus and that is included in the wages.

2002, c. 9, s. 74.