I-3 - Taxation Act

Section 1137.2 Disposition versions

2006-03-01

1137.2. A corporation may deduct, under paragraph b.3 of section 1137, an amount in computing its paid-up capital for a taxation year, in respect of property referred to in that paragraph b.3 that is described in subparagraph c of the first paragraph of section 1137.5 and that is acquired by the corporation for the carrying on of an activity described in subparagraph d of the second paragraph of that section, only if the corporation holds at the end of the year, in respect of that activity, a qualification certificate issued by Tourisme Québec certifying that the recreational facilities it operates are conducive to promoting tourism in Québec and if it encloses a copy of the qualification certificate with the fiscal return it is required to file for the year under section 1000, because of section 1145.

For the purposes of paragraph b.4 of section 1137, the following rules apply:

(a)  a corporation may deduct, under that paragraph b.4, an amount in computing its paid-up capital for a taxation year, in respect of property referred to in that paragraph b.4 that is described in subparagraph c of the first paragraph of section 1137.5 and that was acquired by the transferor referred to in that paragraph b.4 for the carrying on of an activity described in subparagraph d of the second paragraph of section 1137.5, only if the corporation encloses a copy of the qualification certificate issued by Tourisme Québec to the transferor in respect of that activity with the fiscal return it is required to file for the year under section 1000, because of section 1145; and

(b)  a corporation may deduct an amount, under that paragraph b.4, in respect of property referred to in that paragraph, in computing its paid-up capital for a particular taxation year only if the particular year is

i.  where the transferor’s taxation year that includes the time of the transfer referred to in that paragraph b.4 is the year in which it acquired the property, the corporation’s taxation year that includes the time of the transfer and the year following that year, or

ii.  where the transferor’s taxation year includes the time of the transfer referred to in that paragraph b.4, follows the year in which the transferor acquired the property, the corporation’s taxation year that includes the time of the transfer.

1997, c. 85, s. 312; 2003, c. 9, s. 423.