I-3 - Taxation Act

Section 1029.8.36.72.45 Disposition versions

2021-06-04

1029.8.36.72.45. (Repealed).

2002, c. 9, s. 98; 2002, c. 40, s. 194; 2003, c. 9, s. 303; 2004, c. 21, s. 387; 2005, c. 38, s. 266; 2021, c. 18, s. 125.

2006-03-01

1029.8.36.72.45. A qualified corporation that is associated with one or more other corporations at the end of a calendar year within the qualified corporation’s eligibility period, in relation to a recognized business, and that encloses the documents referred to in the fifth paragraph with the fiscal return the qualified corporation is required to file under section 1000 for the taxation year in which the calendar year ends, is deemed, subject to the fourth paragraph, to have paid to the Minister on the qualified corporation’s balance-due day for that taxation year, on account of its tax payable for that taxation year under this Part, an amount equal to 40% of the aggregate of

(a)  subject to the second paragraph, the least of

i.  the amount by which the aggregate of all amounts each of which is the salary or wages paid by the qualified corporation to an employee in respect of a period within the calendar year for which the employee is an eligible employee, in relation to a recognized business carried on by the qualified corporation in the calendar year, exceeds the aggregate of all amounts each of which is, in relation to a recognized business,

(1)  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 recognized business, the corporation carried on a business in Québec in the sectors of activity described in any of paragraphs a to f of the definition of “recognized business” in the first paragraph of section 1029.8.36.72.43, and

(2)  in any other case, the aggregate of all amounts each of which is the salary or wages paid by the qualified corporation to an employee in respect of a period within the qualified corporation’s base period, in relation to the recognized business, for which the employee is an eligible employee in relation to that recognized business,

ii.  the amount by which the aggregate of all amounts each of which is the qualified corporation’s eligible amount for the calendar year or the aggregate of all amounts each of which is the salary or wages paid by another corporation with which the qualified corporation is associated at the end of the calendar year, to an employee who reports for work at an establishment of the other corporation situated in Québec, where the salary or wages are paid in respect of a period within the calendar year for which the employee would have been an eligible employee of the qualified corporation if the employee had been an employee of the qualified corporation, if a business carried on by the other corporation had been a recognized business carried on by the qualified corporation and if, in the event that the establishment of the other corporation where the employee reported for work was not situated in an eligible region, the establishment where the employee reported for work had been situated in an eligible region, exceeds the total of

(1)  the aggregate of all amounts each of which is the qualified corporation’s base amount in relation to a recognized business it carries on in the calendar year, and

(2)  the aggregate of all amounts each of which is the salary or wages paid by another corporation with which the qualified corporation is associated at the end of the calendar year, to an employee who reports for work at an establishment of the other corporation situated in Québec, where the salary or wages are paid in respect of a period within the qualified corporation’s base period in relation to a recognized business it carries on in the calendar year, for which the employee would have been an eligible employee of the qualified corporation if the employee had been an employee of the qualified corporation, if a business carried on by the other corporation had been a recognized business carried on by the qualified corporation and if, in the event that the establishment of the other corporation where the employee reported for work was not situated in an eligible region, the establishment where the employee reported for work had been situated in an eligible region, unless an amount is included, in respect of the employee, in relation to the other corporation, in computing an amount determined for the calendar year under this subparagraph 2 in relation to another recognized business, and

iii.  the amount by which the qualified corporation’s eligible amount for the calendar year exceeds the aggregate of all amounts each of which is the qualified corporation’s base amount in relation to a recognized business it carries on in the calendar year; and

(b)  the eligible repayment of assistance of the qualified corporation for the taxation year.

Where the qualified corporation referred to in subparagraph a of the first paragraph is associated, at the end of the calendar year, with at least one other qualified corporation carrying on a recognized business in an eligible region in the taxation year in which the calendar year ends, the amount determined under subparagraph a shall not exceed the amount that is attributed to it in respect of the calendar year pursuant to the agreement referred to in section 1029.8.36.72.46.

Where the first paragraph applies to the taxation year that includes the end of the calendar year 2001 or 2002 and the base period of the corporation, in relation to the recognized business, is the calendar year 1999 or 2000, or where it applies to the taxation year that includes the end of the calendar year 2002 and the base period of the corporation, in relation to the recognized business, is the calendar year 2001, the following rules apply:

(a)  the amount determined in accordance with subparagraph 2 of subparagraph i of subparagraph a of the first paragraph or subparagraph 2 of subparagraph ii of that subparagraph a, in respect of the corporation, in relation to the recognized business, is deemed to be equal to 90% of that amount otherwise determined; and

(b)  the base amount of the corporation, in relation to the recognized business, is deemed to be equal to 90% of that amount otherwise determined.

For the purpose of computing the payments that a qualified corporation is required to make under subparagraph a of the first paragraph of section 1027, or any of sections 1145, 1159.7, 1175 and 1175.19 where they refer to that subparagraph a, the qualified corporation is deemed to have paid to the Minister, on account of the aggregate of its tax payable under this Part, for a particular taxation year that is subsequent to the first taxation year in which the first calendar year within the qualified corporation’s eligibility period ends in relation to a recognized business, and of its tax payable for the particular taxation year under Parts IV, 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 particular amount that is the lesser of the amount determined under the first paragraph for the taxation year preceding the particular taxation year and the amount determined under that paragraph for the particular taxation year exceeds the aggregate of all amounts each of which is the portion of the particular amount that may reasonably be considered to be deemed to have been paid to the Minister under this paragraph in the particular taxation 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 this division, to have been paid to the Minister on that date, for the purpose of computing that payment.

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

(a)  the prescribed form containing the prescribed information;

(b)  a copy of the unrevoked qualification certificate issued to the qualified corporation for the taxation year in relation to a recognized business; and

(c)  where the second paragraph applies, the agreement referred to in section 1029.8.36.72.46 filed in prescribed form.

2002, c. 9, s. 98; 2002, c. 40, s. 194; 2003, c. 9, s. 303; 2004, c. 21, s. 387; 2005, c. 38, s. 266.