I-3 - Taxation Act

Section 1029.8.36.89 Disposition versions

2012-05-09

1029.8.36.89. (Repealed).

1999, c. 83, s. 218; 2000, c. 5, s. 267; 2000, c. 39, s. 186; 2001, c. 7, s. 169; 2001, c. 51, s. 183; 2002, c. 9, s. 102; 2005, c. 1, s. 246; 2012, c. 8, s. 228.

2006-03-01

1029.8.36.89. In this division,

“associated group” has the meaning assigned by section 1029.8.36.89.1;

“deemed start-up expenditure” of a qualified corporation for a taxation year in respect of a qualified investment fund of the qualified corporation means the aggregate of all amounts each of which is an amount paid by the qualified corporation in the year, in this definition referred to as the “particular year”, and within two years after the end of the period referred to in subparagraph ii of paragraph a of the definition of “qualified start-up expenditure”, pursuant to a legal obligation, as repayment of assistance that reduced, for the purpose of computing a qualified start-up expenditure of the qualified corporation in respect of that fund for a preceding taxation year and in respect of which the qualified corporation is deemed to have paid an amount to the Minister under section 1029.8.36.90 for that preceding taxation year or, as the case may be, for a taxation year after that preceding taxation year but before the particular year, the aggregate referred to in paragraph a of the definition of “qualified start-up expenditure” and determined in relation to the qualified corporation in respect of that fund for that preceding taxation year;

“excluded investment fund” means

(a)  a fund exempt from the preparation of a prospectus under the provisions of Division II of Chapter II of Title II of the Securities Act (chapter V-1.1), or a fund that would be so exempt if its securities were not distributed only outside Québec;

(b)  a separate fund, within the meaning of the regulations made under the Act respecting insurance (chapter A-32), established as part of a variable contract, within the meaning of those regulations, the issuance of which need not be accompanied by an information folder referred to in section 216 of those regulations by reason of the exception provided for in that section; or

(c)  a separate fund, within the meaning of the regulations made under the Act respecting insurance, that would be referred to in paragraph a if it were a mutual fund within the meaning of the Securities Act;

“qualification certificate” issued to a qualified corporation in respect of a qualified investment fund of the qualified corporation means a certificate issued to the qualified corporation by the Minister of Finance certifying, on the basis of the information provided by the qualified corporation, that at least 75% of the work relating to the promotion and marketing of the qualified investment fund, and of the activities relating to the administration and management of the fund, are carried out in Québec;

“qualified corporation”, for a taxation year, means a corporation that, in the year, has an establishment in Québec and carries on a qualified business in Québec, but does not include

(a)  a corporation that is exempt from tax for the year under Book VIII, other than an insurer referred to in paragraph k of section 998 not so exempt from tax on the totality of its taxable income for the year by reason of section 999.0.1; or

(b)  a corporation that would be exempt from tax for the year under section 985 but for section 192;

(c)  (paragraph repealed);

“qualified investment fund” of a qualified corporation means any of the following funds if it is recognized by the Minister of Finance for the purposes of this division and Title VII.2.1 of Book IV and it is not an excluded investment fund:

(a)  an unincorporated mutual fund, within the meaning of the Securities Act, that is established under a collective investment contract entered into by the qualified corporation and in respect of which the net asset value per share is first computed after 31 December 1997 and before 1 April 2001;

(b)  a mutual fund, within the meaning of the Securities Act, that is established by the qualified corporation and in respect of which the net asset value per share is first computed after 31 December 1997 and before 1 April 2001; or

(c)  where the qualified corporation is a life insurance corporation, a separate fund, within the meaning of the regulations under the Act respecting insurance, that is established by the qualified corporation and in respect of which the net asset value per security is first computed after 31 December 1997 and before 1 April 2001;

“qualified start-up expenditure” of a qualified corporation for a taxation year in respect of a qualified investment fund of the qualified corporation means the amount by which

(a)  the aggregate of all amounts each of which is an amount that is both entered on the certificate issued for the year by the Minister of Finance to the qualified corporation in respect of expenditure relating to the qualified investment fund and the amount of expenditure in respect of which the certificate certifies that

i.  it is attributable to the start-up and implementation period of the investment fund,

ii.  it was incurred, after 31 December 1997 and before the 731st day following the reference date applicable to the investment fund, by the qualified corporation during the year, and

iii.  where it is an expenditure incurred after 9 March 1999, it is not an expenditure that may reasonably be attributed to activities relating to the administration or management of the fund that are carried out outside Québec; exceeds

(b)  the aggregate of all amounts each of which is an amount of government assistance or non-government assistance attributable to an expenditure referred to in paragraph a, that the qualified corporation has received, is entitled to receive or may reasonably expect to receive on or before the filing-due date of the qualified corporation for the particular year referred to in section 1029.8.36.90;

“reference date” applicable to a qualified investment fund of a qualified corporation means the date entered on the qualification certificate or temporary certificate, as the case may be, that is issued to the qualified corporation in respect of the qualified investment fund and that is

(a)  where the fund is an unincorporated mutual fund referred to in paragraph a of the definition of “qualified investment fund”, the date on which the net asset value per share is first computed;

(b)  where the fund is a mutual fund referred to in paragraph b of the definition of “qualified investment fund”, the date on which the net asset value per share is first computed;

(c)  where the fund is a separate fund referred to in paragraph c of the definition of “qualified investment fund”, the date on which the net asset value per security is first computed;

“temporary certificate” issued to a qualified corporation in respect of a qualified investment fund of the qualified corporation means a certificate issued to the qualified corporation by the Minister of Finance certifying, on the basis of the information provided by the qualified corporation, that at least 75% of the work relating to the promotion and marketing of the qualified investment fund is carried out in Québec, and that the qualified corporation has undertaken to ensure that at least 75% of the activities relating to the administration and management of the fund will, on or before the last day of the two-year period that begins on the reference date applicable to the fund, be carried out in Québec.

For the purposes of the definition of “deemed start-up expenditure” in the first paragraph, an amount of assistance is deemed to be repaid by a qualified corporation in a taxation year pursuant to a legal obligation where that amount

(a)  reduced, because of paragraph b of the definition of “qualified start-up expenditure” in the first paragraph, the aggregate referred to in paragraph a of that definition, for the purpose of computing a qualified start-up expenditure in respect of which the qualified corporation is deemed to have paid an amount to the Minister under section 1029.8.36.90;

(b)  was not received by the corporation; and

(c)  ceased in the taxation year to be an amount that the corporation may reasonably expect to receive.

1999, c. 83, s. 218; 2000, c. 5, s. 267; 2000, c. 39, s. 186; 2001, c. 7, s. 169; 2001, c. 51, s. 183; 2002, c. 9, s. 102; 2005, c. 1, s. 246.