I-3 - Taxation Act

Section 1129.44.3 Disposition versions

2007-11-07

1129.44.3. (Repealed).

2006, c. 13, s. 213; 2007, c. 12, s. 266.

2006-06-13

1129.44.3. For the purposes of this Part, the following rules apply:

(a)  if, in a given taxation year, a person or partnership has obtained, is entitled to obtain or may reasonably expect to obtain, whether in the form of a reimbursement, compensation or guarantee, in the form of proceeds of disposition of a property which exceed the fair market value of the property, or in any other form or manner, a benefit or advantage in respect of a contract entered into with a qualified outside consultant that provides for the carrying out of a design activity and in respect of which a qualified corporation is deemed to have paid an amount to the Minister under section 1029.8.36.5 or 1029.8.36.6 for a preceding taxation year, other than a benefit or advantage that may reasonably be attributed to the carrying out of the design activity, the amount of the benefit or advantage is deemed to be

i.  if section 1029.8.36.5 applies, an amount relating to the amount of an expenditure incurred under the contract by the corporation that is refunded to the corporation in the given taxation year,

ii.  if section 1029.8.36.6 applies and except in the case referred to in subparagraph iii, an amount relating to the amount of an expenditure incurred under the contract by the partnership of which it is a member that is refunded to the partnership in a fiscal period of the partnership that ends in the given taxation year, and

iii.  if section 1029.8.36.6 applies and the person who has obtained or is entitled to obtain the benefit or advantage is the qualified corporation or a person with whom it is not dealing at arm’s length, an amount relating to the amount of an expenditure incurred under the contract by the partnership of which it is a member that is refunded to the corporation in the given taxation year; and

(b)  if, in a given taxation year, a person or partnership has obtained, is entitled to obtain or may reasonably expect to obtain, whether in the form of a reimbursement, compensation or guarantee, in the form of proceeds of disposition of a property which exceed the fair market value of the property, or in any other form or manner, a benefit or advantage in respect of wages in respect of which a qualified corporation is deemed to have paid an amount to the Minister under section 1029.8.36.7 or 1029.8.36.7.1 for a preceding taxation year, other than the benefit or advantage that may reasonably be attributed to work carried out by the employee in the performance of duties with the corporation in the case of section 1029.8.36.7, or with the partnership of which it is a member in the case of section 1029.8.36.7.1, the amount of the benefit or advantage is deemed to be

i.  if section 1029.8.36.7 applies, an amount relating to wages incurred by the corporation, in respect of the employee, that is refunded to the corporation in the given taxation year,

ii.  if section 1029.8.36.7.1 applies and except in the case referred to in subparagraph iii, an amount relating to wages incurred by the partnership, in respect of the employee, that is refunded to the partnership in a fiscal period of the partnership that ends in the given taxation year, and

iii.  if section 1029.8.36.7.1 applies and the person who has obtained, is entitled to obtain or may reasonably expect to obtain the benefit or advantage is the qualified corporation or a person with whom it is not dealing at arm’s length, an amount relating to wages incurred by the corporation, in respect of the employee, that is refunded to the corporation in the given taxation year.

2006, c. 13, s. 213.