I-3 - Taxation Act

Section 1029.8.36.166.60.28 Disposition versions

2017-02-08

1029.8.36.166.60.28. A qualified corporation for a taxation year that is a member of a qualified partnership at the end of a fiscal period of the qualified partnership that ends in the year and that encloses the documents described in the sixth paragraph with the fiscal return it is required to file for the year under section 1000, is deemed, subject to the fourth paragraph, to have paid to the Minister on the qualified corporation’s balance-due day for the year, on account of its tax payable for the year under this Part, an amount equal to the aggregate of

(a)  an amount equal to the product obtained by multiplying 80% of the lesser of the following amounts by the rate determined in its respect for the year under section 1029.8.36.166.60.29:

i.  the aggregate of all amounts each of which is the corporation’s share of such a qualified partnership’s eligible expenses for such a fiscal period, in relation to an eligible information technology integration contract in respect of which the application for a certificate has been filed with Investissement Québec before 4 June 2014, and

ii.  the amount by which the balance of the corporation’s cumulative limit for the year exceeds all or part of the aggregate described in subparagraph i of subparagraph b that the corporation elects to use for the purpose of determining the amount the corporation is deemed to have paid to the Minister for the year under this section; and

(b)  an amount equal to the product obtained by multiplying 80% of the lesser of the following amounts by the rate determined in its respect for the year under section 1029.8.36.166.60.29:

i.  the aggregate of all amounts each of which is the corporation’s share of such a qualified partnership’s eligible expenses for such a fiscal period, in relation to an eligible information technology integration contract in respect of which the application for a certificate has been filed with Investissement Québec after 26 March 2015, and

ii.  the amount by which the balance of the corporation’s cumulative limit for the year exceeds all or part of the aggregate described in subparagraph i of subparagraph a that the corporation elects to use for the purpose of determining the amount the corporation is deemed to have paid to the Minister for the year under this section.

For the purposes of subparagraph i of subparagraphs a and b of the first paragraph, the aggregate of all amounts each of which is a qualified partnership’s eligible expenses for a fiscal period, in relation to an eligible information technology integration contract, that are referred to in either of those subparagraphs, may not exceed the balance of the partnership’s cumulative limit for the fiscal period.

For the purposes of subparagraph ii of subparagraphs a and b of the first paragraph, the balance of a qualified corporation’s cumulative limit for a taxation year is to be reduced, if applicable, by the aggregate of the amounts described in subparagraph i of subparagraphs a and b of the first paragraph of section 1029.8.36.166.60.27, in respect of which the corporation is deemed to have paid an amount to the Minister for the year under that section.

For the purpose of computing the payments that a corporation is required to make under subparagraph a of the first paragraph of section 1027 or any of sections 1159.7, 1175 and 1175.19 where those sections refer to that subparagraph a, the corporation is deemed to have paid to the Minister, on account of the aggregate of its tax payable for the year under this Part and its tax payable for the year under Parts IV.1, VI and VI.1, on the date on or before which each payment is required to be made, an amount equal to the lesser of

(a)  the amount by which the amount determined under the first paragraph for the year exceeds the aggregate of all amounts each of which is the portion of that amount that may reasonably be considered to be deemed to have been paid to the Minister under this paragraph in the year but before that date; and

(b)  the amount by which the amount of that payment, determined without reference to this chapter, exceeds the aggregate of all amounts each of which is an amount that is deemed, under this chapter but otherwise than under the first paragraph, to have been paid to the Minister on that date, for the purpose of computing that payment.

Despite the definition of “eligible expenses” in the first paragraph of section 1029.8.36.166.60.19 and for the purpose of applying this section to a qualified corporation referred to in the first paragraph, the eligible expenses for a particular fiscal period, in relation to an eligible information technology integration contract, of a qualified partnership of which the corporation is a member do not include

(a)  the expenses that would otherwise be such expenses because of subparagraph ii of paragraph b or d or of paragraph f of the definition of “eligible expenses” in the first paragraph of section 1029.8.36.166.60.19 and that are incurred in a fiscal period of the partnership that precedes the particular fiscal period and ends in a taxation year for which the corporation was not a qualified corporation; or

(b)  the expenses that would otherwise be such expenses because of subparagraph iii of paragraph b or d or of paragraph f of the definition of “eligible expenses” in the first paragraph of section 1029.8.36.166.60.19 and that are incurred in a fiscal period of the partnership that ends in a taxation year for which the corporation was not a qualified corporation.

The documents to which the first paragraph refers are the following:

(a)  the prescribed form containing prescribed information;

(b)  a copy of any valid certificate issued for the purposes of this division to a partnership in respect of an eligible information technology integration contract; and

(c)  a copy of the agreement described in section 1029.8.36.166.60.20, if applicable.

2015, c. 21, s. 466; 2017, c. 1, s. 295.

2015-10-21

1029.8.36.166.60.28. A qualified corporation for a taxation year that is a member of a qualified partnership at the end of a fiscal period of the qualified partnership that ends in the year and that encloses the documents referred to in the sixth paragraph with the fiscal return it is required to file for the year under section 1000, is deemed, subject to the fourth paragraph, to have paid to the Minister on the qualified corporation’s balance-due day for the year, on account of its tax payable for the year under this Part, an amount equal to the product obtained by multiplying 80% of the lesser of the following amounts by the rate determined in its respect for the year under section 1029.8.36.166.60.29:

(a)  the aggregate of all amounts each of which is the corporation’s share of such a qualified partnership’s eligible expenses for such a fiscal period, in relation to an eligible information technology integration contract; and

(b)  the balance of the corporation’s cumulative limit for the year.

For the purposes of subparagraph a of the first paragraph, the aggregate of all amounts each of which is a qualified partnership’s eligible expenses for a fiscal period, in relation to an eligible information technology integration contract, may not exceed the balance of the partnership’s cumulative limit for that fiscal period.

For the purposes of subparagraph b of the first paragraph, the balance of a qualified corporation’s cumulative limit for a taxation year is to be reduced, if applicable, by the aggregate of all amounts each of which is the corporation’s eligible expenses for the year, in relation to an eligible information technology integration contract, in respect of which the corporation is deemed to have paid an amount to the Minister for the year under section 1029.8.36.166.60.27.

For the purpose of computing the payments that a corporation is required to make under subparagraph a of the first paragraph of section 1027 or any of sections 1159.7, 1175 and 1175.19 where those sections refer to that subparagraph a, the corporation is deemed to have paid to the Minister, on account of the aggregate of its tax payable for the year under this Part and its tax payable for the year under Parts IV.1, VI and VI.1, on the date on or before which each payment is required to be made, an amount equal to the lesser of

(a)  the amount by which the amount determined under the first paragraph for the year exceeds the aggregate of all amounts each of which is the portion of that amount that may reasonably be considered to be deemed to have been paid to the Minister under this paragraph in the year but before that date; and

(b)  the amount by which the amount of that payment, determined without reference to this chapter, exceeds the aggregate of all amounts each of which is an amount that is deemed, under this chapter but otherwise than under the first paragraph, to have been paid to the Minister on that date, for the purpose of computing that payment.

Despite the definition of “eligible expenses” in the first paragraph of section 1029.8.36.166.60.19 and for the purpose of applying this section to a qualified corporation referred to in the first paragraph, the eligible expenses for a particular fiscal period, in relation to an eligible information technology integration contract, of a qualified partnership of which the corporation is a member do not include

(a)  the expenses that would otherwise be such expenses because of subparagraph ii of paragraph b of the definition of “eligible expenses” in the first paragraph of section 1029.8.36.166.60.19 and that are incurred in a fiscal period of the partnership preceding the particular fiscal period and ends in a taxation year for which the corporation was not a qualified corporation; or

(b)  the expenses that would otherwise be such expenses because of subparagraph iii of paragraph b of the definition of “eligible expenses” in the first paragraph of section 1029.8.36.166.60.19 and that are incurred in a fiscal period of the partnership that ends in a taxation year for which the corporation was not a qualified corporation.

The documents to which the first paragraph refers are the following:

(a)  the prescribed form containing prescribed information;

(b)  a copy of any valid certificate issued for the purposes of this division to a partnership in respect of an eligible information technology integration contract; and

(c)  a copy of the agreement described in section 1029.8.36.166.60.20, if applicable.

2015, c. 21, s. 466.