I-3 - Taxation Act

Section 1029.8.36.157 Disposition versions

2010-10-27

1029.8.36.157. (Repealed).

2002, c. 40, s. 209; 2004, c. 21, s. 423; 2010, c. 25, s. 170.

2006-03-01

1029.8.36.157. 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;

“communications expenditure” in respect of an eligible road show of a qualified corporation for a taxation year means an expenditure that is reasonable in the circumstances, that is incurred by the corporation in the taxation year, after 29 June 2000 and before 1 July 2003, and that corresponds to the amount by which the expenses described in any of the following paragraphs exceed the amount determined pursuant to the second paragraph:

(a)  the travel and accommodation expenses of an employee of the qualified corporation who participates in the eligible road show;

(b)  expenses relating to food and beverages consumed by an employee referred to in paragraph a or by persons for whom the eligible road show conducted by the qualified corporation is intended;

(c)  rental expenses for the premises or data processing and audio-visual equipment necessary for the production and holding of a public presentation in connection with the eligible road show;

(d)  expenses relating to the preparation of documents made available to the persons for whom the eligible road show conducted by the qualified corporation is intended;

(e)  the expenses of public relations consultants or event management consultants that relate to the eligible road show; and

(f)  publicity expenses in relation to the eligible road show;

“eligible communications expenditure” of a qualified corporation for a taxation year means the lesser of

(a)  the amount determined for the year pursuant to section 1029.8.36.158;

(b)  the aggregate of all amounts each of which is a communications expenditure in respect of an eligible road show of the corporation for the year;

“eligible road show” of a qualified corporation for a taxation year means a promotional activity in respect of which a qualification certificate or provisional certificate, as the case may be, is issued to the corporation for the year by the Minister of Finance for the purposes of this division;

“excluded corporation” for a taxation year means

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

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

“qualified corporation” for a taxation year means, subject to section 1029.8.36.159, a corporation, other than an excluded corporation, that, in the year, carries on a business in Québec and has an establishment in Québec, and that holds, for the year, a certificate issued by the Minister of Finance certifying that, at any time in the year, a class of shares of its capital stock is listed, or is in the process of being listed, on a Canadian stock exchange or a foreign stock exchange and that, in the opinion of the Minister of Finance, the corporation’s connection with Québec is sufficiently strong, in particular because of its principal place of business or, where applicable, of the place where its investments projects are carried out;

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

The amount to which the definition of “communications expenditure” in the first paragraph refers, in relation to expenses, is equal to the aggregate of

(a)  the aggregate of all amounts each of which is an amount of government assistance or non-government assistance attributable to such expenses, 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 the year; and

(b)  the aggregate of all amounts each of which is a benefit or advantage, in respect of such expenses, other than a benefit or advantage that may reasonably be associated with the eligible road show, 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 the 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.

For the purposes of the definition of “eligible communications expenditure” in the first paragraph, the amount of a communications expenditure shall in no case exceed the amount that would be deductible in respect of that expenditure in computing the corporation’s income for the taxation year in which the corporation has incurred the expenditure if the amount actually paid or payable in respect of that expenditure was equal, for the purpose of computing such income, to the amount by which the amount otherwise actually paid or payable in respect of that expenditure exceeds the aggregate of all amounts each of which is an amount referred to in paragraph a or b of the second paragraph in respect of that expenditure.

2002, c. 40, s. 209; 2004, c. 21, s. 423.