I-3 - Taxation Act

Section 1029.8.36.72.1 Disposition versions

2021-06-04

1029.8.36.72.1. (Repealed).

2001, c. 51, s. 182; 2002, c. 9, s. 89; 2002, c. 40, s. 169; 2003, c. 2, s. 262; 2003, c. 29, s. 135; 2004, c. 21, s. 358; 2005, c. 38, s. 256; 2006, c. 8, s. 31; 2006, c. 13, s. 151; 2021, c. 18, s. 125.

2006-06-13

1029.8.36.72.1. In this division,

“base amount” of a corporation, in relation to a calendar year, means the amount that would be the eligible amount of the corporation for its base period in relation to the calendar year if the reference to a calendar year, in the definition of “eligible amount”, were replaced by a reference to a base period in relation to a calendar year or, where the calendar year, except in the case of a corporation that results from an amalgamation or a corporation to which section 1029.8.36.72.11 applies in relation to the calendar year, ends in the first taxation year of the corporation, an amount equal to zero;

“base period” of a corporation, in relation to a calendar year, means the period within the preceding calendar year during which a recognized business, or a business that would have been a recognized business if a qualification certificate had been issued in its respect, was carried on in Québec by the corporation;

“eligible amount” of a corporation for a calendar year means the aggregate of all amounts each of which is the salary or wages paid by the corporation to an employee in a pay period, within the year, for which the employee is an eligible employee, or the salary or wages of an employee who reports for work at an establishment of the corporation situated in Québec, that were paid by the corporation in a pay period, within the year, for which the employee would be an eligible employee of the corporation if the establishment where the employee so reported for work were situated in the Québec area;

“eligible employee” for a pay period within a calendar year means an employee, other than an excluded employee at any time in that period, who, during that period, reports for work at an establishment of the employer situated in the Québec area and who, throughout that period, spends, when at work, at least 90% of the time in undertaking, supervising or supporting work that is directly related to the manufacturing or, as the case may be, the commercialization of apparatus or equipment related to the optics, photonics or laser sector and that constitutes a business carried on by the employer in the Québec area;

“eligible repayment of assistance” for a taxation year of a qualified corporation means the aggregate of

(a)  where the qualified corporation pays in the taxation year, pursuant to a legal obligation, an amount that may reasonably be considered to be a repayment of assistance referred to in subparagraph i of paragraph a of section 1029.8.36.72.7 that reduced the amount of the salary or wages paid by the qualified corporation to an employee, for the purpose of computing the amount referred to in subparagraph a of the first paragraph of section 1029.8.36.72.2 that relates to a calendar year preceding the calendar year ending in the taxation year, the amount by which the amount that would have been determined under that subparagraph a in respect of the qualified corporation in relation to the preceding calendar year if each of the amounts of assistance paid in respect of the salary or wages had been reduced by any amount paid by the qualified corporation, in respect of such an amount of assistance, as repayment in the taxation year or a preceding taxation year, exceeds the aggregate of

i.  the amount determined under subparagraph a of the first paragraph of section 1029.8.36.72.2 in respect of the qualified corporation in relation to the preceding calendar year, and

ii.  the aggregate of all amounts determined for a taxation year preceding the taxation year under this paragraph in relation to a repayment of assistance;

(b)  where a corporation pays in a calendar year ending in the taxation year, pursuant to a legal obligation, an amount that may reasonably be considered to be a repayment of assistance referred to in subparagraph i of paragraph a of section 1029.8.36.72.7 that reduced the amount of the salary or wages paid by the corporation to an employee, for the purpose of computing the amount referred to in subparagraph a of the first paragraph of section 1029.8.36.72.3 that relates to a calendar year preceding the calendar year in relation to the qualified corporation at the end of which the corporation was not associated with any other qualified corporation carrying on a recognized business in the Québec area for its taxation year in which the preceding calendar year ended, the amount by which the amount that would have been determined under that subparagraph a in respect of the qualified corporation in relation to the preceding calendar year if each of the amounts of assistance paid in respect of the salary or wages had been reduced by any amount paid, in respect of such an amount of assistance, as repayment in the calendar year or a preceding calendar year, exceeds the aggregate of

i.  the amount determined under subparagraph a of the first paragraph of section 1029.8.36.72.3 in respect of the qualified corporation in relation to the preceding calendar year, and

ii.  the aggregate of all amounts determined for a calendar year preceding the calendar year under this paragraph in relation to a repayment of assistance; and

(c)  where a corporation pays in a calendar year ending in the taxation year, pursuant to a legal obligation, an amount that may reasonably be considered to be a repayment of assistance referred to in subparagraph i of paragraph b of section 1029.8.36.72.7 that reduced the amount of the salary or wages paid by the corporation to an employee, for the purpose of computing the excess amount referred to in paragraph a of section 1029.8.36.72.4 determined, in respect of a calendar year preceding the calendar year, in relation to all of the corporations that were associated with each other at the end of that preceding calendar year and with which the qualified corporation was associated at that time, the amount by which the amount that would have been determined under subparagraph a of the first paragraph of section 1029.8.36.72.3 in respect of the qualified corporation in relation to the preceding calendar year if, for the purposes of paragraph a of section 1029.8.36.72.4 in relation to that preceding calendar year, each of the amounts of assistance in respect of the salary or wages had been reduced by any amount paid, in respect of such an amount of assistance, as repayment in the calendar year or a preceding calendar year, and if the amount determined pursuant to section 1029.8.36.72.4 had been attributed to a corporation in the same proportion as that determined in its respect in relation to the preceding calendar year, exceeds the aggregate of

i.  the amount determined under subparagraph a of the first paragraph of section 1029.8.36.72.3 in respect of the qualified corporation in relation to the preceding calendar year, and

ii.  the aggregate of all amounts determined for a calendar year preceding the calendar year under this paragraph in relation to a repayment of assistance;

“excluded employee” at a particular time means an employee of a corporation who, at that time, is a specified shareholder of that corporation or, where the corporation is a cooperative, a specified member of that corporation;

“qualified corporation”, for a calendar year, means a corporation that, in the year, has an establishment in Québec and carries on a qualified business in Québec, other than

(a)  a corporation that is exempt from tax under Book VIII for the taxation year in which the calendar year ends;

(b)  a corporation that would be exempt from tax for the taxation year in which the calendar year ends under section 985 but for section 192; or

(c)  a corporation control of which is acquired at any time in the calendar year or a preceding calendar year, but after 11 June 2003, by a person or group of persons, unless the acquisition of control

i.  occurs before 1 July 2004 and the Minister of Economic Development, Innovation and Export Trade certifies that it results from a transaction that was sufficiently advanced on 11 June 2003 and was binding on the parties on that date,

ii.  is by a corporation carrying on at that time a recognized business, by a person or group of persons that controls such a corporation, or by a group of persons each member of which is such a corporation or a person who, alone or together with other members of the group, controls such a corporation,

iii.  derives from the exercise after 11 June 2003 of one or more rights described in paragraph b of section 20 that were acquired before 12 June 2003, or

iv.  derives from the performance after 11 June 2003 of one or more obligations described in the third paragraph of section 21.3.5 that were contracted before 12 June 2003;

“Québec area” means the Québec Census Metropolitan Area, as described in the 1996 Census Dictionary published by Statistics Canada;

“recognized business” of a corporation for a taxation year means a business carried on by the corporation in the year in respect of which a qualification certificate was issued by the Minister of Economic Development, Innovation and Export Trade, and that is any of the following businesses:

(a)  a business manufacturing and, as the case may be, commercializing apparatus or equipment related to the optics, photonics or laser sector; or

(b)  a business the activities of which are related to a business described in paragraph a;

“salary or wages” means the income computed pursuant to Chapters I and II of Title II of Book III, but does not include

(a)  for an employee whose activities relate to the commercialization of apparatus or equipment related to the optics, photonics or laser sector, directors’ fees, premiums, overtime compensation for hours done in addition to normal working hours or benefits referred to in Division II of Chapter II of Title II of Book III; or

(b)  for all other employees, directors’ fees, premiums, incentive bonuses, overtime compensation for hours done in addition to normal working hours, commissions or benefits referred to in Division II of Chapter II of Title II of Book III;

“specified member” of a corporation that is a cooperative, in a taxation year, means a member having, directly or indirectly, at any time in the year, at least 10% of the votes at a meeting of the members of the cooperative.

For the purposes of the definition of “eligible employee” in the first paragraph,

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

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

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

(b)  where, during a pay period within a calendar year, an employee is not required to report for work at an establishment of a qualified corporation and the employee’s salary or wages in relation to that period are paid from such an establishment situated in the Québec area, 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 the definition of “eligible amount” in the first paragraph,

(a)  where, during a pay period within a calendar year, an employee reports for work at an establishment of a qualified corporation situated in Québec and at an establishment of the qualified corporation 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, or

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 corporation situated outside Québec; and

(b)  where, during a pay period within a calendar year, an employee is not required to report for work at an establishment of a qualified corporation and the employee’s salary or 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 this division, a reference to a calendar year ending in a taxation year includes a reference to a calendar year ending coincidentally with that taxation year.

2001, c. 51, s. 182; 2002, c. 9, s. 89; 2002, c. 40, s. 169; 2003, c. 2, s. 262; 2003, c. 29, s. 135; 2004, c. 21, s. 358; 2005, c. 38, s. 256; 2006, c. 8, s. 31; 2006, c. 13, s. 151.

2006-03-01

1029.8.36.72.1. In this division,

"base amount" of a corporation, in relation to a calendar year, means the amount that would be the eligible amount of the corporation for its base period in relation to the calendar year if the reference to a calendar year, in the definition of "eligible amount", were replaced by a reference to a base period in relation to a calendar year or, where the calendar year, except in the case of a corporation that results from an amalgamation or a corporation to which section 1029.8.36.72.11 applies in relation to the calendar year, ends in the first taxation year of the corporation, an amount equal to zero;

"base period" of a corporation, in relation to a calendar year, means the period within the preceding calendar year during which a recognized business, or a business that would have been a recognized business if a qualification certificate had been issued in its respect, was carried on in Québec by the corporation;

"eligible amount" of a corporation for a calendar year means the aggregate of all amounts each of which is the salary or wages paid by the corporation to an employee in a pay period, within the year, for which the employee is an eligible employee, or the salary or wages of an employee who reports for work at an establishment of the corporation situated in Québec, that were paid by the corporation in a pay period, within the year, for which the employee would be an eligible employee of the corporation if the establishment where the employee so reported for work were situated in the Québec area;

"eligible employee" for a pay period within a calendar year means an employee, other than an excluded employee at any time in that period, who, during that period, reports for work at an establishment of the employer situated in the Québec area and who, throughout that period, spends, when at work, at least 90% of the time in undertaking, supervising or supporting work that is directly related to the manufacturing or, as the case may be, the commercialization of apparatus or equipment related to the optics, photonics or laser sector and that constitutes a business carried on by the employer in the Québec area;

"eligible repayment of assistance" for a taxation year of a qualified corporation means the aggregate of

(a)  where the qualified corporation pays in the taxation year, pursuant to a legal obligation, an amount that may reasonably be considered to be a repayment of assistance referred to in subparagraph i of paragraph a of section 1029.8.36.72.7 that reduced the amount of the salary or wages paid by the qualified corporation to an employee, for the purpose of computing the amount referred to in subparagraph a of the first paragraph of section 1029.8.36.72.2 that relates to a calendar year preceding the calendar year ending in the taxation year, the amount by which the amount that would have been determined under that subparagraph a in respect of the qualified corporation in relation to the preceding calendar year if each of the amounts of assistance paid in respect of the salary or wages had been reduced by any amount paid by the qualified corporation, in respect of such an amount of assistance, as repayment in the taxation year or a preceding taxation year, exceeds the aggregate of

i.  the amount determined under subparagraph a of the first paragraph of section 1029.8.36.72.2 in respect of the qualified corporation in relation to the preceding calendar year, and

ii.  the aggregate of all amounts determined for a taxation year preceding the taxation year under this paragraph in relation to a repayment of assistance;

(b)  where a corporation pays in a calendar year ending in the taxation year, pursuant to a legal obligation, an amount that may reasonably be considered to be a repayment of assistance referred to in subparagraph i of paragraph a of section 1029.8.36.72.7 that reduced the amount of the salary or wages paid by the corporation to an employee, for the purpose of computing the amount referred to in subparagraph a of the first paragraph of section 1029.8.36.72.3 that relates to a calendar year preceding the calendar year in relation to the qualified corporation at the end of which the corporation was not associated with any other qualified corporation carrying on a recognized business in the Québec area for its taxation year in which the preceding calendar year ended, the amount by which the amount that would have been determined under that subparagraph a in respect of the qualified corporation in relation to the preceding calendar year if each of the amounts of assistance paid in respect of the salary or wages had been reduced by any amount paid, in respect of such an amount of assistance, as repayment in the calendar year or a preceding calendar year, exceeds the aggregate of

i.  the amount determined under subparagraph a of the first paragraph of section 1029.8.36.72.3 in respect of the qualified corporation in relation to the preceding calendar year, and

ii.  the aggregate of all amounts determined for a calendar year preceding the calendar year under this paragraph in relation to a repayment of assistance; and

(c)  where a corporation pays in a calendar year ending in the taxation year, pursuant to a legal obligation, an amount that may reasonably be considered to be a repayment of assistance referred to in subparagraph i of paragraph b of section 1029.8.36.72.7 that reduced the amount of the salary or wages paid by the corporation to an employee, for the purpose of computing the excess amount referred to in paragraph a of section 1029.8.36.72.4 determined, in respect of a calendar year preceding the calendar year, in relation to all of the corporations that were associated with each other at the end of that preceding calendar year and with which the qualified corporation was associated at that time, the amount by which the amount that would have been determined under subparagraph a of the first paragraph of section 1029.8.36.72.3 in respect of the qualified corporation in relation to the preceding calendar year if, for the purposes of paragraph a of section 1029.8.36.72.4 in relation to that preceding calendar year, each of the amounts of assistance in respect of the salary or wages had been reduced by any amount paid, in respect of such an amount of assistance, as repayment in the calendar year or a preceding calendar year, and if the amount determined pursuant to section 1029.8.36.72.4 had been attributed to a corporation in the same proportion as that determined in its respect in relation to the preceding calendar year, exceeds the aggregate of

i.  the amount determined under subparagraph a of the first paragraph of section 1029.8.36.72.3 in respect of the qualified corporation in relation to the preceding calendar year, and

ii.  the aggregate of all amounts determined for a calendar year preceding the calendar year under this paragraph in relation to a repayment of assistance;

"excluded employee" at a particular time means an employee of a corporation who, at that time, is a specified shareholder of that corporation or, where the corporation is a cooperative, a specified member of that corporation;

"qualified corporation", for a calendar year, means a corporation that, in the year, has an establishment in Québec and carries on a qualified business in Québec, other than

(a)  a corporation that is exempt from tax under Book VIII for the taxation year in which the calendar year ends;

(b)  a corporation that would be exempt from tax for the taxation year in which the calendar year ends under section 985 but for section 192; or

(c)  a corporation control of which is acquired at any time after 11 June 2003 by a person or group of persons, unless acquiring control of the corporation

i.  occurs before 1 July 2004 where the Minister of Economic and Regional Development and Research certifies that the acquisition of control results from a transaction that was sufficiently advanced on 11 June 2003 and was binding on the parties on that date,

ii.  is by a corporation carrying on at that time a recognized business, or by a group of persons all the members of which are corporations carrying on at that time a recognized business, or

iii.  derives from the exercise after 11 June 2003 of one or more rights described in paragraph b of section 20 that were acquired before 12 June 2003;

"Québec area" means the Québec Census Metropolitan Area, as described in the 1996 Census Dictionary published by Statistics Canada;

"recognized business" of a corporation for a taxation year means a business carried on by the corporation in the year in respect of which a qualification certificate was issued by the Minister of Economic and Regional Development and Research, and that is any of the following businesses:

(a)  a business manufacturing and, as the case may be, commercializing apparatus or equipment related to the optics, photonics or laser sector; or

(b)  a business the activities of which are related to a business described in paragraph a;

"salary or wages" means the income computed pursuant to Chapters I and II of Title II of Book III, but does not include

(a)  for an employee whose activities relate to the commercialization of apparatus or equipment related to the optics, photonics or laser sector, directors’ fees, premiums, overtime compensation for hours done in addition to normal working hours or benefits referred to in Division II of Chapter II of Title II of Book III; or

(b)  for all other employees, directors’ fees, premiums, incentive bonuses, overtime compensation for hours done in addition to normal working hours, commissions or benefits referred to in Division II of Chapter II of Title II of Book III;

"specified member" of a corporation that is a cooperative, in a taxation year, means a member having, directly or indirectly, at any time in the year, at least 10% of the votes at a meeting of the members of the cooperative.

For the purposes of the definition of "eligible employee" in the first paragraph,

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

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

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

(b)  where, during a pay period within a calendar year, an employee is not required to report for work at an establishment of a qualified corporation and the employee’s salary or wages in relation to that period are paid from such an establishment situated in the Québec area, 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 the definition of "eligible amount" in the first paragraph,

(a)  where, during a pay period within a calendar year, an employee reports for work at an establishment of a qualified corporation situated in Québec and at an establishment of the qualified corporation 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, or

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 corporation situated outside Québec; and

(b)  where, during a pay period within a calendar year, an employee is not required to report for work at an establishment of a qualified corporation and the employee’s salary or 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 this division, a reference to a calendar year ending in a taxation year includes a reference to a calendar year ending coincidentally with that taxation year.

2001, c. 51, s. 182; 2002, c. 9, s. 89; 2002, c. 40, s. 169; 2003, c. 2, s. 262; 2003, c. 29, s. 135; O.C. 222-2004; 2004, c. 21, s. 358; 2005, c. 38, s. 256.