I-3 - Taxation Act

Section 1138.2.3 Disposition versions

2022-06-08

1138.2.3. (Repealed).

2002, c. 40, s. 315; 2004, c. 21, s. 493; 2009, c. 5, s. 561; 2010, c. 25, s. 222; 2022, c. 23, s. 152.

2010-10-27

1138.2.3. A corporation that is a qualified corporation for the year, for the purposes of Title VII.2.4 of Book IV of Part I, may deduct from its paid-up capital otherwise determined for the year under this Title an amount equal to the lesser of the amount determined under section 1138.2.3.1 in respect of the corporation for the year and the amount determined by the formula

(75% × A) × {1 - [(B - $20,000,000)/$10,000,000]} × (1 - C).

In the formula provided for in the first paragraph,

(a)  A is the proportion of the paid-up capital of the corporation for the year, computed before the application of this section, that the number of days in the year that are within the exemption period applicable to the corporation, within the meaning of the first paragraph of section 737.18.18, is of the number of days in the year;

(b)  B is the greater of $20,000,000 and the paid-up capital attributed to the corporation for the year determined in accordance with section 737.18.24; and

(c)  C is the corporation’s reduction factor for the year, within the meaning assigned by the first paragraph of section 737.18.18.

A corporation may deduct an amount of its paid-up capital, under the first paragraph, for a taxation year only if

(a)  it encloses the prescribed form containing prescribed information and a copy of the qualification certificate issued to it for the year by Investissement Québec for the purposes of Title VII.2.4 of Book IV of Part I with the fiscal return it is required to file for the year under section 1000; and

(b)  where, for the purposes of section 1138.0.1, it would be a qualified corporation, within the meaning of sections 771.5 to 771.7 if that section 771.5 were read without reference to paragraph e thereof, it elected irrevocably, in prescribed form, not to be considered as such a qualified corporation.

2002, c. 40, s. 315; 2004, c. 21, s. 493; 2009, c. 5, s. 561; 2010, c. 25, s. 222.

2009-05-15

1138.2.3. A corporation that is a qualified corporation for the year, for the purposes of Title VII.2.4 of Book IV of Part I, may deduct from its paid-up capital otherwise determined for the year under this Title an amount equal to the amount determined by the formula

(75% × A) × {1 - [(B - $20,000,000)/$10,000,000]} × (1 - C).

In the formula provided for in the first paragraph,

(a)  A is the proportion of the paid-up capital of the corporation for the year, computed before the application of this section, that the number of days in the year that are within the exemption period applicable to the corporation, within the meaning of the first paragraph of section 737.18.18, is of the number of days in the year;

(b)  B is the greater of $20,000,000 and the paid-up capital attributed to the corporation for the year determined in accordance with section 737.18.24; and

(c)  C is the corporation’s reduction factor for the year, within the meaning assigned by the first paragraph of section 737.18.18.

A corporation may deduct an amount of its paid-up capital, under the first paragraph, for a taxation year only if

(a)  it encloses the prescribed form containing prescribed information and a copy of the qualification certificate issued to it for the year by Investissement Québec for the purposes of Title VII.2.4 of Book IV of Part I with the fiscal return it is required to file for the year under section 1000; and

(b)  where, for the purposes of section 1138.0.1, it would be a qualified corporation, within the meaning of sections 771.5 to 771.7 if that section 771.5 were read without reference to paragraph e thereof, it elected irrevocably, in prescribed form, not to be considered as such a qualified corporation.

2002, c. 40, s. 315; 2004, c. 21, s. 493; 2009, c. 5, s. 561.

2006-03-01

1138.2.3. A corporation that is a qualified corporation for the year, for the purposes of Title VII.2.4 of Book IV of Part I, may deduct from its paid-up capital otherwise determined for the year under this Title an amount equal to the amount determined by the formula

(75% × A) × {1 − [(B − $20,000,000) / $10,000,000]}.

In the formula provided for in the first paragraph,

(a)  A is the proportion of the paid-up capital of the corporation for the year, computed before the application of this section, that the number of days in the year that are within the exemption period applicable to the corporation, within the meaning of the first paragraph of section 737.18.18, is of the number of days in the year; and

(b)  B is the greater of $20,000,000 and the paid-up capital attributed to the corporation for the year determined in accordance with section 737.18.24.

A corporation may deduct an amount of its paid-up capital, under the first paragraph, for a taxation year only if

(a)  it encloses the prescribed form containing the prescribed information with the fiscal return it is required to file under section 1000; and

(b)  where, for the purposes of section 1138.0.1, it would be a qualified corporation, within the meaning of sections 771.5 to 771.7 if that section 771.5 were read without reference to paragraph e thereof, it elected irrevocably, in prescribed form, not to be considered as such a qualified corporation.

2002, c. 40, s. 315; 2004, c. 21, s. 493.