I-3 - Taxation Act

Section 1029.8.36.21 Disposition versions

2009-06-04

1029.8.36.21. If, in a fiscal period, in this section referred to as the “fiscal period of repayment”, a qualified partnership or a qualified outside consultant with whom it has entered into a contract for the carrying out of a design activity pays, pursuant to a legal obligation, an amount that may reasonably be considered to be a repayment of government assistance or non-government assistance that reduced, in accordance with subparagraph i of subparagraph c or d of the first paragraph of section 1029.8.36.18, the share of a corporation that is a member of the qualified partnership of an expenditure incurred by the qualified partnership in a particular fiscal period for the purpose of computing the amount that the corporation is deemed to have paid to the Minister under section 1029.8.36.6, in respect of the share, for its taxation year in which the particular fiscal period ended, the corporation is deemed, if it is a member of the qualified partnership at the end of the fiscal period of repayment and if it encloses the prescribed form containing the prescribed information with the fiscal return it is required to file under section 1000, for its taxation year in which the fiscal period of repayment ends, to have paid to the Minister on the corporation’s balance-due day for that year, on account of its tax payable for that year under this Part, an amount equal to the amount by which the particular amount that the corporation would be deemed, if the assumptions set out in the second paragraph were taken into account, to have paid to the Minister, in respect of the share, under section 1029.8.36.6 for its taxation year in which the particular fiscal period ends, exceeds the aggregate of

(a)  the amount that the corporation would be deemed to have paid to the Minister under section 1029.8.36.6, for its taxation year in which the particular fiscal period ends, in respect of the expenditure incurred by the qualified partnership, if the agreed proportion in respect of the corporation for the particular fiscal period were the same as that for the fiscal period of repayment; and

(b)  any amount that the corporation would be deemed to have paid to the Minister under this section for a taxation year preceding the taxation year in which the fiscal period of repayment ends, in respect of an amount paid by the qualified partnership or the qualified outside consultant, if the agreed proportion in respect of the corporation for the particular fiscal period were the same as that for the fiscal period of repayment.

The particular amount to which the first paragraph refers is to be computed as if

(a)  any amount of assistance repaid at or before the end of the fiscal period of repayment reduced, for the particular fiscal period, the amount of any government assistance or non-government assistance referred to in subparagraph i of subparagraph c or d of the first paragraph of section 1029.8.36.18; and

(b)  the agreed proportion in respect of the corporation for the particular fiscal period were the same as that for the fiscal period of repayment.

1995, c. 1, s. 157; 1995, c. 63, s. 189; 1997, c. 3, s. 71; 1999, c. 8, s. 20; 2001, c. 51, s. 176; 2003, c. 29, s. 135; 2006, c. 13, s. 145; 2006, c. 36, s. 306; 2009, c. 15, s. 264.

2006-06-13

1029.8.36.21. If, in a fiscal period, in this section referred to as the “fiscal period of repayment”, a qualified partnership or a qualified outside consultant with whom it has entered into a contract for the carrying out of a design activity pays, pursuant to a legal obligation, an amount that may reasonably be considered to be a repayment of government assistance or non-government assistance that reduced, in accordance with subparagraph i of subparagraph c or d of the first paragraph of section 1029.8.36.18, the share of a corporation that is a member of the qualified partnership of an expenditure incurred by the qualified partnership in a particular fiscal period for the purpose of computing the amount that the corporation is deemed to have paid to the Minister under section 1029.8.36.6, in respect of the share, for its taxation year in which the particular fiscal period ended, the corporation is deemed, if it is a member of the qualified partnership at the end of the fiscal period of repayment and if it encloses the prescribed form containing the prescribed information with the fiscal return it is required to file under section 1000, for its taxation year in which the fiscal period of repayment ends, to have paid to the Minister on the corporation’s balance-due day for that year, on account of its tax payable for that year under this Part, an amount equal to the amount by which the particular amount that the corporation would be deemed, if the assumptions set out in the second paragraph were taken into account, to have paid to the Minister, in respect of the share, under section 1029.8.36.6 for its taxation year in which the particular fiscal period ends, exceeds the aggregate of

(a)  the amount that the corporation would be deemed to have paid to the Minister under section 1029.8.36.6, for its taxation year in which the particular fiscal period ends, in respect of the expenditure incurred by the qualified partnership, if the corporation’s share of the income or loss of the qualified partnership for the particular fiscal period and the qualified partnership’s income or loss for that fiscal period were the same as those for the fiscal period of repayment; and

(b)  any amount that the corporation would be deemed to have paid to the Minister under this section for a taxation year preceding the taxation year in which the fiscal period of repayment ends, in respect of an amount paid by the qualified partnership or the qualified outside consultant, if the corporation’s share of the income or loss of the qualified partnership for the particular fiscal period and the qualified partnership’s income or loss for that fiscal period were the same as those for the fiscal period of repayment.

The particular amount to which the first paragraph refers is to be computed as if

(a)  any amount of assistance repaid at or before the end of the fiscal period of repayment reduced, for the particular fiscal period, the amount of any government assistance or non-government assistance referred to in subparagraph i of subparagraph c or d of the first paragraph of section 1029.8.36.18; and

(b)  the corporation’s share of the income or loss of the qualified partnership for the particular fiscal period and the qualified partnership’s income or loss for that fiscal period were the same as those for the fiscal period of repayment.

1995, c. 1, s. 157; 1995, c. 63, s. 189; 1997, c. 3, s. 71; 1999, c. 8, s. 20; 2001, c. 51, s. 176; 2003, c. 29, s. 135; 2006, c. 13, s. 145; 2006, c. 36, s. 306.

2006-03-01

1029.8.36.21. Where, in any particular fiscal period, a qualified partnership pays a particular amount that may reasonably be considered to be the repayment of government assistance or non-government assistance that reduced, by reason of subparagraph i of subparagraph b of the first paragraph of section 1029.8.36.18, the share of a qualified corporation that is a member of the partnership of an expenditure incurred by the partnership for the purpose of computing the amount that the qualified corporation is deemed to have paid to the Minister for a taxation year under section 1029.8.36.6 in respect of an outside consulting contract, the particular amount is deemed to be an expenditure referred to in that section, in respect of that contract, for the particular fiscal period and, for the purposes of section 1029.8.36.6 in respect of that expenditure, the following rules apply:

(a)  the partnership is deemed to hold a valid certificate issued for the fiscal period by the Minister of Economic and Regional Development and Research which mentions the outside consulting contract; and

(b)  the portion of the first paragraph of section 1029.8.36.6 before subparagraph a shall be read without reference to the words "and a copy of the certificate".

1995, c. 1, s. 157; 1995, c. 63, s. 189; 1997, c. 3, s. 71; 1999, c. 8, s. 20; 2001, c. 51, s. 176; 2003, c. 29, s. 135; O.C. 222-2004.