I-3 - Taxation Act

Section 1129.4.8 Disposition versions

2006-03-01

1129.4.8. Every corporation that is deemed to have paid an amount to the Minister, under section 1029.8.36.0.19 or 1029.8.36.0.20, on account of its tax payable under Part I for a particular taxation year, in relation to qualified wages paid to an eligible employee, shall pay the tax referred to in the second paragraph for a subsequent taxation year, in this section referred to as the “repayment year”, in which an amount relating to wages included in computing the qualified wages is, directly or indirectly, refunded or otherwise paid to the corporation or allocated to a payment to be made by the corporation.

The tax referred to in the first paragraph is equal to the amount by which the aggregate of all amounts each of which is an amount that the corporation is deemed to have paid to the Minister under that section 1029.8.36.0.19 or 1029.8.36.0.20 or under section 1029.8.36.0.30, in relation to the qualified wages, exceeds the total of

(a)  the aggregate of all amounts each of which is an amount that the corporation would be deemed to have paid to the Minister, under that section 1029.8.36.0.19 or 1029.8.36.0.20 or under section 1029.8.36.0.30, in relation to the qualified wages, if every amount that is, at or before the end of the repayment year, so refunded, paid or allocated, in relation to wages included in computing the qualified wages, were refunded, paid or allocated in the taxation year, in this section referred to as the “payment year”, in which the corporation paid the wages to which the amount refunded, paid or allocated relates; and

(b)  the aggregate of all amounts each of which is a tax that the corporation is required to pay to the Minister under this section for a taxation year preceding the repayment year, in relation to the qualified wages.

In addition, if a corporation carried on or could carry on its business in an information technology development centre in a particular taxation year that begins before 21 December 2001 for which the corporation is deemed to have paid an amount to the Minister in relation to qualified wages under section 1029.8.36.0.5 or 1029.8.36.0.5.1, as it read for the particular year, the first and second paragraphs apply, in respect of an amount relating to wages included in computing the qualified wages that is, directly or indirectly, refunded, paid or allocated, having regard to the following rules:

(a)  the references to sections 1029.8.36.0.19, 1029.8.36.0.20 and 1029.8.36.0.30, wherever they appear in the portion of this section before subparagraph b of the second paragraph, shall be read respectively as references to sections 1029.8.36.0.5, 1029.8.36.0.5.1 and 1029.8.36.0.10, as they formerly read for the particular year; and

(b)  subparagraph b of the second paragraph shall be read as follows:

“(b) the aggregate of all amounts each of which is a tax that the corporation is required to pay to the Minister in relation to the qualified wages for a taxation year preceding the repayment year, under this section or under section 1129.4.4.1, as it read for that preceding taxation year.”

Notwithstanding section 1129.4.7, the expressions “eligible employee” and “qualified wages” have, in this section, the meaning assigned by section 1129.4.4, as it read for the payment year, if

(a)  the third paragraph applies; or

(b)  the payment year begins before 21 December 2001 and the corporation carried on or could carry on its business in an information technology development centre in the particular taxation year referred to in the first paragraph.

2000, c. 39, s. 238; 2002, c. 40, s. 262; 2003, c. 9, s. 393.