I-3 - Taxation Act

Section 1029.8.36.72.15 Disposition versions

2021-06-04

1029.8.36.72.15. (Repealed).

2001, c. 51, s. 182; 2001, c. 69, s. 12; 2002, c. 9, s. 92; 2002, c. 40, s. 175; 2003, c. 2, s. 265; 2003, c. 9, s. 287; 2004, c. 21, s. 368; 2005, c. 23, s. 193; 2005, c. 38, s. 259; 2021, c. 18, s. 125.

2006-03-01

1029.8.36.72.15. In this division,

“base amount” of a corporation, in relation to a particular recognized business, means

(a)  except in respect of a corporation that results from an amalgamation, an amount equal to zero, where, at no time in its base period in relation to the particular recognized business, the corporation carried on a business in Québec in the sectors of activity described in any of paragraphs a to c of the definition of “recognized business” ; and

(b)  in any other case, the aggregate of all amounts each of which is

i.  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 the course of carrying on the particular recognized business, in respect of a period within its base period, in relation to the particular recognized business for which the employee was an eligible employee of the corporation or would have been an eligible employee of the corporation if the establishment where the employee so reported had been situated in the Saguenay–Lac-Saint-Jean area, or

ii.  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 the course of carrying on any given business that is not a recognized business, in respect of a period within its base period, in relation to the particular recognized business for which the employee would have been an eligible employee of the corporation if the given business had been a recognized business of the corporation and if, in the event that the establishment of the corporation where the employee so reported for work was not situated in the Saguenay–Lac-Saint-Jean area, the establishment where the employee so reported had been situated in the Saguenay–Lac-Saint-Jean area, unless an amount is included, in respect of the employee, in relation to the given business, in computing the base amount of the corporation in relation to another recognized business;

“base period” of a corporation, in relation to a recognized business, means the calendar year preceding the calendar year in which the eligibility period of a corporation in relation to the recognized business begins;

“eligibility period” of a corporation, in relation to a recognized business, means, subject to the second paragraph, the period that begins on 1 January of the first calendar year in respect of which the corporation obtains its qualification certificate in relation to the recognized business and that ends on 31 December 2002;

“eligible amount” of a corporation for a calendar year means the aggregate of all amounts each of which is

(a)  the salary or wages paid by the corporation to an employee in respect of a period within the year for which the employee is an eligible employee, in relation to a recognized business of the corporation; or

(b)  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 respect of a 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 had been situated in the Saguenay–Lac-Saint-Jean area;

“eligible employee” of a corporation for a period within a calendar year, in relation to a recognized business of the corporation, means an employee who, during that period, reports for work at an establishment of the corporation situated in the Saguenay–Lac-Saint-Jean area and who, throughout that period, spends, when at work, at least 75% of the time undertaking, supervising or supporting, in the course of the carrying on by the corporation of the recognized business or another recognized business of the corporation in the year, work that is related to activities described in the qualification certificate issued, for the purposes of this division, to the corporation for the year in respect of such a recognized business and that consists in

(a)  work that is directly related to the manufacturing or, as the case may be, the commercialization of finished or semi-finished products made from aluminum having already undergone primary processing or of specialized equipment for businesses producing or processing aluminum;

(b)  work that is directly related to design work or engineering work in relation to the manufacturing of finished or semi-finished products made from aluminum having already undergone primary processing or of specialized equipment for businesses producing or processing aluminum; or

(c)  work that is directly related to reclamation and recycling of waste and residues from the processing of aluminum;

“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 subparagraph a of the first paragraph of section 1029.8.36.72.21 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 1029.8.36.72.16 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 1029.8.36.72.16 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 subparagraph a of the first paragraph of section 1029.8.36.72.21 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 1029.8.36.72.17 that relates to a calendar year preceding the calendar year in relation to the qualified corporation at the end of which the qualified corporation was not associated with any other qualified corporation that was carrying on a recognized business in the Saguenay–Lac-Saint-Jean area, for its taxation year in which the preceding calendar year ended, the amount by which the amount 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 1029.8.36.72.17 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 qualified 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 subparagraph b of the first paragraph of section 1029.8.36.72.21 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 1029.8.36.72.18 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 1029.8.36.72.17 in respect of the qualified corporation in relation to the preceding calendar year if, for the purposes of paragraph a of section 1029.8.36.72.18 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 the amount determined in accordance with that section 1029.8.36.72.18 had been attributed to a qualified 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 1029.8.36.72.17 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;

“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; or

(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;

“recognized business” of a corporation for a taxation year means a business carried on by the corporation in the year and in respect of which a qualification certificate is issued by Investissement Québec for the purposes of this division certifying that its activities are

(a)  the manufacturing and, as the case may be, the commercialization of finished or semi-finished products made from aluminum which has already undergone primary processing;

(b)  the manufacturing and, as the case may be, the commercialization of specialized equipment for businesses producing or processing aluminum; or

(c)  the reclamation and recycling of waste and residues from the processing of aluminum;

“Saguenay–Lac-Saint-Jean area” means the Saguenay–Lac-Saint-Jean administrative region;

“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 the activities or products of a business described in any of paragraphs a to c of the definition of “recognized business”, 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.

Except where section 1029.8.36.72.23 or 1029.8.36.72.24 applies, where, in a taxation year, a corporation carries on a business in respect of which a qualification certificate has been issued by Investissement Québec, and the business, according to Investissement Québec, is the continuation of a recognized business or part of a recognized business previously carried on by another corporation, the eligibility period of the corporation in relation to the recognized business is deemed, for the purposes of the definition of “eligibility period” in the first paragraph, to have begun on the date on which the eligibility period of the other corporation began, in relation to the recognized business.

For the purposes of this division,

(a)  where, during a period within a calendar year, an employee reports for work at an establishment of a qualified corporation situated in the Saguenay–Lac-Saint-Jean area and at an establishment of the qualified corporation situated outside the Saguenay–Lac-Saint-Jean 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 Saguenay–Lac-Saint-Jean area, or

ii.  to report for work only at the establishment situated outside the Saguenay–Lac-Saint-Jean area if, during that period, the employee reports for work mainly at an establishment of the corporation situated outside the Saguenay–Lac-Saint-Jean area;

(a.1)  where, during a 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 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 the definition of “recognized business” in the first paragraph,

(a)  manufacturing activities carried on outside the Saguenay–Lac-Saint-Jean area do not constitute activities of a recognized business;

(b)  the installation by a corporation of a product or specialized equipment described in the definition of “recognized business” constitutes an activity of a recognized business where the product or specialized equipment is the result of the manufacturing activity carried on by the corporation or a corporation with which it is associated; and

(c)  a corporation is deemed to carry on in a taxation year a business described in paragraph a or b of that definition, where

i.  in the year, the corporation causes to be carried on on its behalf activities relating to the manufacturing of finished or semi-finished products made from aluminum having already undergone primary processing, or activities relating to the manufacturing of specialized equipment for businesses producing or processing aluminum, in this subparagraph referred to as “particular activities”, and

ii.  in the year, the corporation carries on design work and engineering work in relation to the particular activities.

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.

Where Investissement Québec cancels, at the request of a corporation, a qualification certificate issued to the corporation, in relation to a recognized business, the certificate so cancelled is not a revoked certificate for the purposes of Part III.10.1.3.

2001, c. 51, s. 182; 2001, c. 69, s. 12; 2002, c. 9, s. 92; 2002, c. 40, s. 175; 2003, c. 2, s. 265; 2003, c. 9, s. 287; 2004, c. 21, s. 368; 2005, c. 23, s. 193; 2005, c. 38, s. 259.