I-3 - Taxation Act

Section 1029.8.36.147 Disposition versions

2012-05-09

1029.8.36.147. (Repealed).

2002, c. 9, s. 113; 2002, c. 40, s. 202; 2002, c. 45, s. 521; 2003, c. 9, s. 337; 2004, c. 37, s. 90; 2005, c. 23, s. 221; 2006, c. 13, s. 170; 2012, c. 8, s. 228.

2011-07-01

1029.8.36.147. In this division,

“associated group” in a taxation year means the group formed by all of the corporations that are associated with each other in the year;

“eligibility period” applicable to an individual for a taxation year in relation to a corporation means the part of the year within the period for which the qualification certificate issued to the corporation in respect of the individual is valid;

“eligible financial analyst” of a corporation for a taxation year means an individual in respect of whom a certificate is issued to the corporation for the year by the Minister of Finance certifying, for the entire eligibility period applicable to the individual for the year in relation to the corporation, that the individual’s contract of employment provides for at least 26 hours of work per week for a minimum of 40 weeks and that

(a)  where the individual is an individual in respect of whom a qualification certificate has been issued in accordance with paragraph a of the definition of “qualification certificate”,

i.  the individual devotes 75% of the time at work in relation to the individual’s employment with the corporation to security analysis activities in an establishment of the corporation situated in Québec, and

ii.  more than 50% of the security analysis activities of the individual relate to securities of corporations each of which is a Québec corporation in respect of the year; and

(b)  where the individual is an individual in respect of whom a qualification certificate has been issued in accordance with paragraph b of the definition of “qualification certificate”,

i.  the individual devotes 75% of the time at work in relation to the individual’s employment with the corporation to financial derivatives analysis activities or activities of an adviser or dealer, within the meaning assigned to those expressions by the Securities Act (chapter V-1.1), which the individual carries on in respect of financial derivatives, and

ii.  the individual carries on duties in an establishment of the corporation situated in Québec, or outside such an establishment, but in the course of the employee’s duties as an employee of that establishment;

“excluded corporation” means

(a)  a corporation that is exempt from tax under Book VIII, other than an insurer referred to in paragraph k of section 998 that is not so exempt from tax on all of its taxable income by reason of section 999.0.1; or

(b)  a corporation that would be exempt from tax under section 985, but for section 192;

“financial derivative” means a contract, instrument or security, the market price, value or payment obligations of which is derived from an underlying interest or from the relationship between certain underlying interests;

“qualification certificate” in respect of an individual means

(a)  a certificate issued to a corporation by the Minister of Finance after 29 June 2000 that certifies that the individual qualifies as a financial analyst specialized in securities of Québec corporations for the purposes of this division and that the individual took up employment with the corporation in that capacity before 12 June 2003; or

(b)  a certificate issued to a corporation by the Minister of Finance after 9 April 2001 that certifies that the individual qualifies as a financial analyst specialized in financial derivatives for the purposes of this division and that the individual took up employment with the corporation in that capacity before 12 June 2003;

“qualified wages” paid to an individual by a corporation for a taxation year means the lesser of

(a)  the amount obtained by multiplying $75,000 by the proportion that the number of weeks ending in the eligibility period applicable to the individual for the year in relation to the corporation and for which the corporation paid the individual an amount as wages is of 52; and

(b)  the amount by which the aggregate of all amounts each of which is an amount of wages paid by the corporation to the individual for a week ending in the eligibility period applicable to the individual for the year in relation to the corporation, exceeds the aggregate of

i.  the aggregate of all amounts each of which is an amount of government assistance or non-government assistance attributable to such wages, that the corporation has received, is entitled to receive or may reasonably expect to receive, on or before the corporation’s filing-due date for that taxation year, and

ii.  the aggregate of all amounts each of which is the amount of a benefit or advantage in respect of such wages, other than a benefit or advantage that may reasonably be attributed to the individual’s employment with the corporation as an eligible financial analyst, that a person or partnership has obtained, is entitled to obtain or may reasonably expect to obtain, on or before the corporation’s filing-due date for that taxation year, whether in the form of a reimbursement, compensation, guarantee, in the form of proceeds of disposition of property which exceed the fair market value of the property, or in any other form or manner;

“Québec corporation” in respect of a taxation year of a particular corporation, in this definition referred to as the “base year”, means, subject to section 1029.8.36.148, a corporation

(a)  a class of shares of the capital stock of which, at any time in the base year, is listed, or is in the process of being listed, on a Canadian stock exchange or a foreign stock exchange; and

(b)  more than 50% of the wages paid by it to employees in its taxation year, in this paragraph referred to as the “particular year”, ending in the base year, where the particular year is its first taxation year, or in its taxation year preceding the particular year, were paid to employees of an establishment situated in Québec;

“underlying interest” means any security, commodity, financial instrument, currency, interest rate, foreign exchange rate, economic indicator, index, basket, contract, benchmark or other reference, interest or variable;

“wages” means the income computed pursuant to Chapters I and II of Title II of Book III.

For the purpose of determining the qualified wages paid to an individual, a week ending in the eligibility period applicable to the individual for the year in relation to the corporation is deemed not to be such a week where

(a)  the corporation is not a qualified corporation at any time during that week; or

(b)  the individual is a specified shareholder of the corporation at any time during that week.

For the purposes of subparagraph a of the second paragraph, a qualified corporation is

(a)  for the purpose of determining the qualified wages paid to an individual in respect of whom a qualification certificate has been issued in accordance with paragraph a of the definition of “qualification certificate” in the first paragraph, a corporation that carries on a business in Québec, has an establishment in Québec and is registered with the Autorité des marchés financiers as an unrestricted practice dealer or an unrestricted practice adviser in accordance with the Securities Act, but does not include

i.  an excluded corporation, or

ii.  a corporation that is exempt from registration as a dealer or an adviser with the Autorité des marchés financiers under Title V of the Securities Act, any of sections 2.1, 2.2, 2.9, 2.10, 2.11, 2.16, 2.18, 2.31, 2.33, 2.42, 3.1 and 3.4 of Regulation 45-106 respecting prospectus and registration exemptions (R.R.Q., c. V-1.1, r. 21) or section 194.1 or 194.2 of the Securities Regulation (R.R.Q., c. V-1.1, r. 50); or

(b)  for the purpose of determining the qualified wages paid to an individual in respect of whom a qualification certificate has been issued in accordance with paragraph b of the definition of “qualification certificate” in the first paragraph, a corporation, other than an excluded corporation, that carries on a business in Québec and has an establishment in Québec.

For the purposes of the definition of “Québec corporation” in the first paragraph, the following rules apply:

(a)  a class of shares of the capital stock of a corporation is considered to be in the process of being listed on a Canadian stock exchange or a foreign stock exchange if the corporation has filed a preliminary prospectus with the Autorité des marchés financiers or another competent securities regulatory or supervisory body in order to have the class of shares listed on that stock exchange; and

(b)  for the purpose of determining the proportion of the wages of a corporation’s employees that the corporation paid to employees of an establishment situated in Québec, the following rules apply:

i.  except where a commission is paid to a person who is not an employee of the corporation, an amount paid under an agreement by the corporation to a person for services that would normally be rendered by the employees of the corporation is deemed to be wages paid to such an employee of the establishment of the corporation to which the services are reasonably attributable and to the extent that they are so attributable, and

ii.  where an employee renders a service to or on behalf of a corporation that is not the employer of the employee, an amount that may reasonably be considered to be the wages earned by the employee for the rendering of the service is deemed, for the taxation year during which the wages are paid to the employee, to be wages paid by the corporation to an employee of an establishment of the corporation to which the service is reasonably attributable, if the amount is not otherwise included in the aggregate of the wages paid by the corporation that are determined for the purposes of this division and if the service rendered by the employee is

(1)  performed by the employee in the normal course of the employee’s duties for the employer,

(2)  rendered to or on behalf of the corporation as part of the regular, ongoing activities of carrying on a business by the corporation, and

(3)  of the same type as services rendered by employees of entities carrying on the same type of business as the business referred to in subparagraph 2.

2002, c. 9, s. 113; 2002, c. 40, s. 202; 2002, c. 45, s. 521; 2003, c. 9, s. 337; 2004, c. 37, s. 90; 2005, c. 23, s. 221; 2006, c. 13, s. 170.

2006-06-13

1029.8.36.147. In this division,

“associated group” in a taxation year means the group formed by all of the corporations that are associated with each other in the year;

“eligibility period” applicable to an individual for a taxation year in relation to a corporation means the part of the year within the period for which the qualification certificate issued to the corporation in respect of the individual is valid;

“eligible financial analyst” of a corporation for a taxation year means an individual in respect of whom a certificate is issued to the corporation for the year by the Minister of Finance certifying, for the entire eligibility period applicable to the individual for the year in relation to the corporation, that the individual’s contract of employment provides for at least 26 hours of work per week for a minimum of 40 weeks and that

(a)  where the individual is an individual in respect of whom a qualification certificate has been issued in accordance with paragraph a of the definition of “qualification certificate”,

i.  the individual devotes 75% of the time at work in relation to the individual’s employment with the corporation to security analysis activities in an establishment of the corporation situated in Québec, and

ii.  more than 50% of the security analysis activities of the individual relate to securities of corporations each of which is a Québec corporation in respect of the year; and

(b)  where the individual is an individual in respect of whom a qualification certificate has been issued in accordance with paragraph b of the definition of “qualification certificate”,

i.  the individual devotes 75% of the time at work in relation to the individual’s employment with the corporation to financial derivatives analysis activities or activities of an adviser or dealer, within the meaning assigned to those expressions by the Securities Act (chapter V-1.1), which the individual carries on in respect of financial derivatives, and

ii.  the individual carries on duties in an establishment of the corporation situated in Québec, or outside such an establishment, but in the course of the employee’s duties as an employee of that establishment;

“excluded corporation” means

(a)  a corporation that is exempt from tax under Book VIII, other than an insurer referred to in paragraph k of section 998 that is not so exempt from tax on all of its taxable income by reason of section 999.0.1; or

(b)  a corporation that would be exempt from tax under section 985, but for section 192;

“financial derivative” means a contract, instrument or security, the market price, value or payment obligations of which is derived from an underlying interest or from the relationship between certain underlying interests;

“qualification certificate” in respect of an individual means

(a)  a certificate issued to a corporation by the Minister of Finance after 29 June 2000 that certifies that the individual qualifies as a financial analyst specialized in securities of Québec corporations for the purposes of this division and that the individual took up employment with the corporation in that capacity before 12 June 2003; or

(b)  a certificate issued to a corporation by the Minister of Finance after 9 April 2001 that certifies that the individual qualifies as a financial analyst specialized in financial derivatives for the purposes of this division and that the individual took up employment with the corporation in that capacity before 12 June 2003;

“qualified wages” paid to an individual by a corporation for a taxation year means the lesser of

(a)  the amount obtained by multiplying $75,000 by the proportion that the number of weeks ending in the eligibility period applicable to the individual for the year in relation to the corporation and for which the corporation paid the individual an amount as wages is of 52; and

(b)  the amount by which the aggregate of all amounts each of which is an amount of wages paid by the corporation to the individual for a week ending in the eligibility period applicable to the individual for the year in relation to the corporation, exceeds the aggregate of

i.  the aggregate of all amounts each of which is an amount of government assistance or non-government assistance attributable to such wages, that the corporation has received, is entitled to receive or may reasonably expect to receive, on or before the corporation’s filing-due date for that taxation year, and

ii.  the aggregate of all amounts each of which is the amount of a benefit or advantage in respect of such wages, other than a benefit or advantage that may reasonably be attributed to the individual’s employment with the corporation as an eligible financial analyst, that a person or partnership has obtained, is entitled to obtain or may reasonably expect to obtain, on or before the corporation’s filing-due date for that taxation year, whether in the form of a reimbursement, compensation, guarantee, in the form of proceeds of disposition of property which exceed the fair market value of the property, or in any other form or manner;

“Québec corporation” in respect of a taxation year of a particular corporation, in this definition referred to as the “base year”, means, subject to section 1029.8.36.148, a corporation

(a)  a class of shares of the capital stock of which, at any time in the base year, is listed, or is in the process of being listed, on a Canadian stock exchange or a foreign stock exchange; and

(b)  more than 50% of the wages paid by it to employees in its taxation year, in this paragraph referred to as the “particular year”, ending in the base year, where the particular year is its first taxation year, or in its taxation year preceding the particular year, were paid to employees of an establishment situated in Québec;

“underlying interest” means any security, commodity, financial instrument, currency, interest rate, foreign exchange rate, economic indicator, index, basket, contract, benchmark or other reference, interest or variable;

“wages” means the income computed pursuant to Chapters I and II of Title II of Book III.

For the purpose of determining the qualified wages paid to an individual, a week ending in the eligibility period applicable to the individual for the year in relation to the corporation is deemed not to be such a week where

(a)  the corporation is not a qualified corporation at any time during that week; or

(b)  the individual is a specified shareholder of the corporation at any time during that week.

For the purposes of subparagraph a of the second paragraph, a qualified corporation is

(a)  for the purpose of determining the qualified wages paid to an individual in respect of whom a qualification certificate has been issued in accordance with paragraph a of the definition of “qualification certificate” in the first paragraph, a corporation that carries on a business in Québec, has an establishment in Québec and is registered with the Autorité des marchés financiers as an unrestricted practice dealer or an unrestricted practice adviser in accordance with the Securities Act, but does not include

i.  an excluded corporation, or

ii.  a corporation that is exempt from registration as a dealer or an adviser with the Autorité des marchés financiers under Title V of the Securities Act, any of sections 2.1, 2.2, 2.9, 2.10, 2.11, 2.16, 2.18, 2.31, 2.33, 2.42, 3.1 and 3.4 of Regulation 45-106 respecting prospectus and registration exemptions, approved by ministerial order 2005-20 (2005, G.O. 2, 3664), or section 194.1 or 194.2 of the Securities Regulation made by Order in Council 660-83 (1983, G.O. 2, 1269); or

(b)  for the purpose of determining the qualified wages paid to an individual in respect of whom a qualification certificate has been issued in accordance with paragraph b of the definition of “qualification certificate” in the first paragraph, a corporation, other than an excluded corporation, that carries on a business in Québec and has an establishment in Québec.

For the purposes of the definition of “Québec corporation” in the first paragraph, the following rules apply:

(a)  a class of shares of the capital stock of a corporation is considered to be in the process of being listed on a Canadian stock exchange or a foreign stock exchange if the corporation has filed a preliminary prospectus with the Autorité des marchés financiers or another competent securities regulatory or supervisory body in order to have the class of shares listed on that stock exchange; and

(b)  for the purpose of determining the proportion of the wages of a corporation’s employees that the corporation paid to employees of an establishment situated in Québec, the following rules apply:

i.  except where a commission is paid to a person who is not an employee of the corporation, an amount paid under an agreement by the corporation to a person for services that would normally be rendered by the employees of the corporation is deemed to be wages paid to such an employee of the establishment of the corporation to which the services are reasonably attributable and to the extent that they are so attributable, and

ii.  where an employee renders a service to or on behalf of a corporation that is not the employer of the employee, an amount that may reasonably be considered to be the wages earned by the employee for the rendering of the service is deemed, for the taxation year during which the wages are paid to the employee, to be wages paid by the corporation to an employee of an establishment of the corporation to which the service is reasonably attributable, if the amount is not otherwise included in the aggregate of the wages paid by the corporation that are determined for the purposes of this division and if the service rendered by the employee is

(1)  performed by the employee in the normal course of the employee’s duties for the employer,

(2)  rendered to or on behalf of the corporation as part of the regular, ongoing activities of carrying on a business by the corporation, and

(3)  of the same type as services rendered by employees of entities carrying on the same type of business as the business referred to in subparagraph 2.

2002, c. 9, s. 113; 2002, c. 40, s. 202; 2002, c. 45, s. 521; 2003, c. 9, s. 337; 2004, c. 37, s. 90; 2005, c. 23, s. 221; 2006, c. 13, s. 170.

2006-03-01

1029.8.36.147. In this division,

"associated group" in a taxation year means the group formed by all of the corporations that are associated with each other in the year;

"eligibility period" applicable to an individual for a taxation year in relation to a corporation means the part of the year within the period for which the qualification certificate issued to the corporation in respect of the individual is valid;

"eligible financial analyst" of a corporation for a taxation year means an individual in respect of whom a certificate is issued to the corporation for the year by the Minister of Finance certifying, for the entire eligibility period applicable to the individual for the year in relation to the corporation, that the individual’s contract of employment provides for at least 26 hours of work per week for a minimum of 40 weeks and that

(a)  where the individual is an individual in respect of whom a qualification certificate has been issued in accordance with paragraph a of the definition of "qualification certificate",

i.  the individual devotes 75% of the time at work in relation to the individual’s employment with the corporation to security analysis activities in an establishment of the corporation situated in Québec, and

ii.  more than 50% of the security analysis activities of the individual relate to securities of corporations each of which is a Québec corporation in respect of the year; and

(b)  where the individual is an individual in respect of whom a qualification certificate has been issued in accordance with paragraph b of the definition of "qualification certificate",

i.  the individual devotes 75% of the time at work in relation to the individual’s employment with the corporation to financial derivatives analysis activities or activities of an adviser or dealer, within the meaning assigned to those expressions by the Securities Act (chapter V-1.1), which the individual carries on in respect of financial derivatives, and

ii.  the individual carries on duties in an establishment of the corporation situated in Québec, or outside such an establishment, but in the course of the employee’s duties as an employee of that establishment;

"excluded corporation" means

(a)  a corporation that is exempt from tax under Book VIII, other than an insurer referred to in paragraph k of section 998 that is not so exempt from tax on all of its taxable income by reason of section 999.0.1; or

(b)  a corporation that would be exempt from tax under section 985, but for section 192;

"financial derivative" means a contract, instrument or security, the market price, value or payment obligations of which is derived from an underlying interest or from the relationship between certain underlying interests;

"qualification certificate" in respect of an individual means

(a)  a certificate issued to a corporation by the Minister of Finance after 29 June 2000 that certifies that the individual qualifies as a financial analyst specialized in securities of Québec corporations for the purposes of this division and that the individual took up employment with the corporation in that capacity before 12 June 2003; or

(b)  a certificate issued to a corporation by the Minister of Finance after 9 April 2001 that certifies that the individual qualifies as a financial analyst specialized in financial derivatives for the purposes of this division and that the individual took up employment with the corporation in that capacity before 12 June 2003;

"qualified wages" paid to an individual by a corporation for a taxation year means the lesser of

(a)  the amount obtained by multiplying $75,000 by the proportion that the number of weeks ending in the eligibility period applicable to the individual for the year in relation to the corporation and for which the corporation paid the individual an amount as wages is of 52; and

(b)  the amount by which the aggregate of all amounts each of which is an amount of wages paid by the corporation to the individual for a week ending in the eligibility period applicable to the individual for the year in relation to the corporation, exceeds the aggregate of

i.  the aggregate of all amounts each of which is an amount of government assistance or non-government assistance attributable to such wages, that the corporation has received, is entitled to receive or may reasonably expect to receive, on or before the corporation’s filing-due date for that taxation year, and

ii.  the aggregate of all amounts each of which is the amount of a benefit or advantage in respect of such wages, other than a benefit or advantage that may reasonably be attributed to the individual’s employment with the corporation as an eligible financial analyst, that a person or partnership has obtained, is entitled to obtain or may reasonably expect to obtain, on or before the corporation’s filing-due date for that taxation year, whether in the form of a reimbursement, compensation, guarantee, in the form of proceeds of disposition of property which exceed the fair market value of the property, or in any other form or manner;

"Québec corporation" in respect of a taxation year of a particular corporation, in this definition referred to as the "base year", means, subject to section 1029.8.36.148, a corporation

(a)  a class of shares of the capital stock of which, at any time in the base year, is listed, or is in the process of being listed, on a Canadian stock exchange or a foreign stock exchange; and

(b)  more than 50% of the wages paid by it to employees in its taxation year, in this paragraph referred to as the "particular year", ending in the base year, where the particular year is its first taxation year, or in its taxation year preceding the particular year, were paid to employees of an establishment situated in Québec;

"underlying interest" means any security, commodity, financial instrument, currency, interest rate, foreign exchange rate, economic indicator, index, basket, contract, benchmark or other reference, interest or variable;

"wages" means the income computed pursuant to Chapters I and II of Title II of Book III.

For the purpose of determining the qualified wages paid to an individual, a week ending in the eligibility period applicable to the individual for the year in relation to the corporation is deemed not to be such a week where

(a)  the corporation is not a qualified corporation at any time during that week; or

(b)  the individual is a specified shareholder of the corporation at any time during that week.

For the purposes of subparagraph a of the second paragraph, a qualified corporation is

(a)  for the purpose of determining the qualified wages paid to an individual in respect of whom a qualification certificate has been issued in accordance with paragraph a of the definition of "qualification certificate" in the first paragraph, a corporation that carries on a business in Québec, has an establishment in Québec and is registered with the Autorité des marchés financiers as an unrestricted practice dealer or an unrestricted practice adviser in accordance with the Securities Act, but does not include

i.  an excluded corporation, or

ii.  a corporation that is exempt from registration as a dealer or an adviser with the Autorité des marchés financiers under Title V of the Securities Act; or

(b)  for the purpose of determining the qualified wages paid to an individual in respect of whom a qualification certificate has been issued in accordance with paragraph b of the definition of "qualification certificate" in the first paragraph, a corporation, other than an excluded corporation, that carries on a business in Québec and has an establishment in Québec.

For the purposes of the definition of "Québec corporation" in the first paragraph, the following rules apply:

(a)  a class of shares of the capital stock of a corporation is considered to be in the process of being listed on a Canadian stock exchange or a foreign stock exchange if the corporation has filed a preliminary prospectus with the Autorité des marchés financiers or another competent securities regulatory or supervisory body in order to have the class of shares listed on that stock exchange; and

(b)  for the purpose of determining the proportion of the wages of a corporation’s employees that the corporation paid to employees of an establishment situated in Québec, the following rules apply:

i.  except where a commission is paid to a person who is not an employee of the corporation, an amount paid under an agreement by the corporation to a person for services that would normally be rendered by the employees of the corporation is deemed to be wages paid to such an employee of the establishment of the corporation to which the services are reasonably attributable and to the extent that they are so attributable, and

ii.  where an employee renders a service to or on behalf of a corporation that is not the employer of the employee, an amount that may reasonably be considered to be the wages earned by the employee for the rendering of the service is deemed, for the taxation year during which the wages are paid to the employee, to be wages paid by the corporation to an employee of an establishment of the corporation to which the service is reasonably attributable, if the amount is not otherwise included in the aggregate of the wages paid by the corporation that are determined for the purposes of this division and if the service rendered by the employee is

(1)  performed by the employee in the normal course of the employee’s duties for the employer,

(2)  rendered to or on behalf of the corporation as part of the regular, ongoing activities of carrying on a business by the corporation, and

(3)  of the same type as services rendered by employees of entities carrying on the same type of business as the business referred to in subparagraph 2.

2002, c. 9, s. 113; 2002, c. 40, s. 202; 2002, c. 45, s. 521; 2003, c. 9, s. 337; 2004, c. 37, s. 90; 2005, c. 23, s. 221.