I-3 - Taxation Act

Section 737.18.29 Disposition versions

2022-06-08

737.18.29. (Repealed).

2003, c. 9, s. 57; 2004, c. 21, s. 148; 2004, c. 37, s. 90; 2005, c. 38, s. 100; 2006, c. 13, s. 56; 2009, c. 58, s. 87; 2010, c. 25, s. 71; 2012, c. 8, s. 78; 2022, c. 23, s. 53.

2012-05-09

737.18.29. In this Title,

“eligibility period” of an individual who is a foreign specialist for all or part of a taxation year, in relation to an employment the individual holds with a qualified corporation, means the period that, subject to the second paragraph, begins on the day on which the individual begins to perform the duties of that employment and ends on the earlier of

(a)  the day preceding the day on which the individual ceases to be a foreign specialist; and

(b)  the day on which that period totals five years, with reference to

i.   where the individual began to stay or became resident in Canada after 19 December 2002 by reason of an employment contract entered into after that date, the aggregate of all periods each of which is a preceding period within the meaning of section 737.18.29.1 that is established in respect of the individual, and

ii.  in any other case, the aggregate of all preceding periods each of which is

(1)  all or part of a preceding period, established in respect of the individual under this definition, to which an amount that the individual may deduct in computing the individual’s taxable income for a taxation year, under section 737.18.34, in relation to a preceding employment, may reasonably be attributed, or

(2)  a preceding period within the meaning of section 737.18.29.1 that is established in respect of the individual since the last time the individual became resident in Canada, other than a preceding period described in subparagraph 1;

(c)  where the individual entered into the individual’s employment contract with the qualified corporation after 30 March 2004, the last day of the five-year period that begins,

i.  unless subparagraph ii applies, on the day on which the individual first begins to perform the duties of an employment for which the individual may deduct an amount in computing the individual’s taxable income for a taxation year under any of the sections mentioned in the third paragraph of section 737.19.2, or could so deduct such an amount if an employer had not failed to apply, in respect of the individual, for a qualification certificate or a certificate referred to in any of the sections mentioned in subparagraph ii of paragraph a of section 737.20, or

ii.  if the individual began to perform the duties of the employment referred to in subparagraph i under a contract of employment entered into with a particular corporation or partnership operating an international financial centre established by the individual and if the individual was resident in Canada immediately before the contract of employment was entered into and immediately before the individual took up that employment, on the day, determined without reference to paragraph a of section 8, on which the individual becomes resident in Canada to work on the establishment of that centre;

“eligible activities” of a recognized business carried on by a corporation in a taxation year means the activities relating to the operations carried out in the course of carrying on the recognized business;

“exemption period” applicable to a qualified corporation means the period that begins on 1 October 2000 and that ends on 31 December 2010;

“foreign specialist” for all or part of a taxation year means an individual in respect of whom the following conditions are met:

(a)  at a particular time after 26 April 2000 but before 1 January 2011, the individual takes up employment, as an employee, with a qualified corporation under an employment contract entered into after 26 April 2000;

(b)  the individual is not resident in Canada immediately before entering into the employment contract or immediately before taking up employment, as an employee, with the qualified corporation;

(c)  the individual works exclusively or almost exclusively for the qualified corporation from the particular time to the end of the year or the part of the year; and

(d)  the qualified corporation has obtained in respect of the individual, for the purposes of this Title, a qualification certificate issued by the Minister of Finance for the taxation year and the qualification certificate and, if applicable, all the similar qualification certificates that were obtained in respect of the individual for preceding taxation years certify that, from the particular time to the end of the year or the part of the year, the individual is recognized as a specialist;

(e)  (paragraph repealed);

“prior loss attributable to eligible activities” of a qualified corporation for a taxation year means the amount determined by the formula

A − B;

“qualified corporation” for a taxation year means a corporation that, in the year, carries on a recognized business in Québec, carries out eligible activities of that recognized business in an establishment situated within the urban agglomeration of Montréal, as described in section 4 of the Act respecting the exercise of certain municipal powers in certain urban agglomerations (chapter E-20.001), and pays to employees of an establishment situated in Québec more than 50% of the wages it pays in the year;

“recognized business” carried on by a corporation in a taxation year means a stock exchange or a securities clearing-house, recognized by the Autorité des marchés financiers as a self-regulatory organization under section 17 of the Derivatives Act (chapter I-14.01) or under the second paragraph of section 170 of the Securities Act (chapter V-1.1);

“specified period” of an individual in relation to an employment held by the individual with a qualified corporation means

(a)  where the individual entered into the individual’s employment contract with the qualified corporation after 30 March 2004, any part of the individual’s eligibility period in relation to that employment that is included in any of the five years of the period described in paragraph c of the definition of “eligibility period”; and

(b)  in any other case, the individual’s eligibility period in relation to that employment;

“wages” means the income computed under Chapters I and II of Title II of Book III.

Where the qualification certificate referred to in paragraph d of the definition of “foreign specialist” in the first paragraph was not issued in respect of an individual for the taxation year that includes the particular day on which the individual begins to perform the duties of an employment the individual holds with a qualified corporation, the individual’s eligibility period in relation to that employment begins only on the first day of the first taxation year following the particular day for which such a qualification certificate was issued in respect of the individual.

In the formula provided for in the first paragraph in the definition of “prior loss attributable to eligible activities” of a qualified corporation for a particular taxation year,

(a)  A is the aggregate of all amounts each of which is the amount by which the amount determined under subparagraph b of the second paragraph of section 737.18.33, in respect of the qualified corporation, for a taxation year preceding the particular taxation year, exceeds the amount determined under subparagraph a of that second paragraph, in respect of the qualified corporation, for the preceding taxation year; and

(b)  B is the aggregate of all amounts each of which is the amount that reduced, because of C in the formula provided for in the first paragraph of section 737.18.33, the amount otherwise deductible by the qualified corporation, under that section, for a taxation year preceding the particular taxation year.

For the purposes of the definition of “qualified corporation” in the first paragraph and for the purpose of determining the proportion of the wages of the corporation’s employees that a corporation pays in a taxation year to employees of an establishment situated in Québec, the following rules apply:

(a)  an amount paid by the corporation to a person in the year under an agreement for services that would normally be rendered by the employees of the corporation is deemed to be wages paid to such an employee of the establishment of the corporation to which such services are reasonably attributable and to the extent that they are so attributable, except where a commission is paid to a person who is not an employee of the corporation; and

(b)  where an employee renders a service to or on behalf of a corporation that is not the employer of the employee, an amount that may reasonably be considered to be the wages earned by the employee for the rendering of the service is deemed, for the taxation year during which the wages are so paid to the employee, to be wages paid by the corporation for the service to an employee of an establishment of the corporation to which such service is reasonably attributable, to the extent that it is so attributable, and the employee is deemed to be an employee of the corporation, where the amount is not otherwise included in the aggregate of the wages paid by the corporation that are determined for the purposes of this Title and the service rendered by the employee is

i.  performed by the employee in the normal course of the employee’s duties for the employer,

ii.  rendered to or on behalf of the corporation as part of the regular, ongoing activities of carrying on a business by the corporation, and

iii.  of the same type as services rendered by employees of entities carrying on the same type of business as the business referred to in subparagraph ii.

2003, c. 9, s. 57; 2004, c. 21, s. 148; 2004, c. 37, s. 90; 2005, c. 38, s. 100; 2006, c. 13, s. 56; 2009, c. 58, s. 87; 2010, c. 25, s. 71; 2012, c. 8, s. 78.

2010-10-27

737.18.29. In this Title,

“eligibility period” of an individual who is a foreign specialist for all or part of a taxation year, in relation to an employment the individual holds with a qualified corporation, means the period that, subject to the second paragraph, begins on the day on which the individual begins to perform the duties of that employment and ends on the earlier of

(a)  the day preceding the day on which the individual ceases to be a foreign specialist; and

(b)  the day on which that period totals five years, with reference to

i.   where the individual began to stay or became resident in Canada after 19 December 2002 by reason of an employment contract entered into after that date, the aggregate of all periods each of which is a preceding period within the meaning of section 737.18.29.1 that is established in respect of the individual, and

ii.  in any other case, the aggregate of all preceding periods each of which is

(1)  all or part of a preceding period, established in respect of the individual under this definition, to which an amount that the individual may deduct in computing the individual’s taxable income for a taxation year, under section 737.18.34, in relation to a preceding employment, may reasonably be attributed, or 

(2)  a preceding period within the meaning of section 737.18.29.1 that is established in respect of the individual since the last time the individual became resident in Canada, other than a preceding period described in subparagraph 1;

(c)  where the individual entered into the individual’s employment contract with the qualified corporation after 30 March 2004, the last day of the five-year period that begins,

i.  unless subparagraph ii applies, on the day on which the individual first begins to perform the duties of an employment for which the individual may deduct an amount in computing the individual’s taxable income for a taxation year under any of the sections mentioned in the third paragraph of section 737.19.2, or could so deduct such an amount if an employer had not failed to apply, in respect of the individual, for a qualification certificate or a certificate referred to in any of the sections mentioned in subparagraph ii of paragraph a of section 737.20, or

ii.  if the individual began to perform the duties of the employment referred to in subparagraph i under a contract of employment entered into with a particular corporation or partnership operating an international financial centre established by the individual and if the individual was resident in Canada immediately before the contract of employment was entered into and immediately before the individual took up that employment, on the day, determined without reference to paragraph a of section 8, on which the individual becomes resident in Canada to work on the establishment of that centre;

“eligible activities” of a recognized business carried on by a corporation in a taxation year means the activities relating to the operations carried out in the course of carrying on the recognized business;

“exemption period” applicable to a qualified corporation means the period that begins on 1 October 2000 and that ends on 31 December 2010;

“foreign specialist” for all or part of a taxation year means an individual in respect of whom the following conditions are met:

(a)  at a particular time after 26 April 2000 but before 1 January 2011, the individual takes up employment, as an employee, with a qualified corporation under an employment contract entered into after 26 April 2000;

(b)  the individual is not resident in Canada immediately before entering into the employment contract or immediately before taking up employment, as an employee, with the qualified corporation;

(c)  the individual works exclusively or almost exclusively for the qualified corporation from the particular time to the end of the year or the part of the year;

(d)  the qualified corporation obtained, in respect of the individual, a qualification certificate issued, for the taxation year, by the Minister of Finance, after having applied therefor in writing before 1 March of the following calendar year, and that qualification certificate, that was not revoked in respect of the year or the part of the year, certifies that the employment contract provides for at least 26 hours of work per week for a minimum duration of 40 weeks; and

(e)  the qualification certificate referred to in paragraph d and, where applicable, all the unrevoked qualification certificates obtained in respect of the individual for preceding taxation years, certify that, from the particular time to the end of the year or the part of the year,

i.  the individual’s duties for the qualified corporation consist exclusively or almost exclusively in undertaking, supervising or supporting work directly related to eligible activities of a recognized business carried on by the qualified corporation, and

ii.  the individual performs the duties in an establishment of the qualified corporation, situated within the urban agglomeration of Montréal, as described in section 4 of the Act respecting the exercise of certain municipal powers in certain urban agglomerations, where eligible activities of a recognized business carried on by the qualified corporation are carried out, or outside such an establishment, but in connection with the individual’s employment at such an establishment;

“prior loss attributable to eligible activities” of a qualified corporation for a taxation year means the amount determined by the formula

A − B;

“qualified corporation” for a taxation year means a corporation that, in the year, carries on a recognized business in Québec, carries out eligible activities of that recognized business in an establishment situated within the urban agglomeration of Montréal, as described in section 4 of the Act respecting the exercise of certain municipal powers in certain urban agglomerations (chapter E-20.001), and pays to employees of an establishment situated in Québec more than 50% of the wages it pays in the year;

“recognized business” carried on by a corporation in a taxation year means a stock exchange or a securities clearing-house, recognized by the Autorité des marchés financiers as a self-regulatory organization under section 17 of the Derivatives Act (chapter I-14.01) or under the second paragraph of section 170 of the Securities Act (chapter V-1.1);

“specified period” of an individual in relation to an employment held by the individual with a qualified corporation means

(a)  where the individual entered into the individual’s employment contract with the qualified corporation after 30 March 2004, any part of the individual’s eligibility period in relation to that employment that is included in any of the five years of the period described in paragraph c of the definition of “eligibility period” ; and

(b)  in any other case, the individual’s eligibility period in relation to that employment;

“wages” means the income computed under Chapters I and II of Title II of Book III.

Where the qualification certificate referred to in paragraph d of the definition of “foreign specialist” in the first paragraph was not issued in respect of an individual for the taxation year that includes the particular day on which the individual begins to perform the duties of an employment the individual holds with a qualified corporation, the individual’s eligibility period in relation to that employment begins only on the first day of the first taxation year following the particular day for which such a qualification certificate was issued in respect of the individual.

In the formula provided for in the first paragraph in the definition of “prior loss attributable to eligible activities” of a qualified corporation for a particular taxation year,

(a)  A is the aggregate of all amounts each of which is the amount by which the amount determined under subparagraph b of the second paragraph of section 737.18.33, in respect of the qualified corporation, for a taxation year preceding the particular taxation year, exceeds the amount determined under subparagraph a of that second paragraph, in respect of the qualified corporation, for the preceding taxation year; and

(b)  B is the aggregate of all amounts each of which is the amount that reduced, because of C in the formula provided for in the first paragraph of section 737.18.33, the amount otherwise deductible by the qualified corporation, under that section, for a taxation year preceding the particular taxation year.

For the purposes of the definition of “qualified corporation” in the first paragraph and for the purpose of determining the proportion of the wages of the corporation’s employees that a corporation pays in a taxation year to employees of an establishment situated in Québec, the following rules apply:

(a)  an amount paid by the corporation to a person in the year under an agreement for services that would normally be rendered by the employees of the corporation is deemed to be wages paid to such an employee of the establishment of the corporation to which such services are reasonably attributable and to the extent that they are so attributable, except where a commission is paid to a person who is not an employee of the corporation; and

(b)  where an employee renders a service to or on behalf of a corporation that is not the employer of the employee, an amount that may reasonably be considered to be the wages earned by the employee for the rendering of the service is deemed, for the taxation year during which the wages are so paid to the employee, to be wages paid by the corporation for the service to an employee of an establishment of the corporation to which such service is reasonably attributable, to the extent that it is so attributable, and the employee is deemed to be an employee of the corporation, where the amount is not otherwise included in the aggregate of the wages paid by the corporation that are determined for the purposes of this Title and the service rendered by the employee is

i.  performed by the employee in the normal course of the employee’s duties for the employer,

ii.  rendered to or on behalf of the corporation as part of the regular, ongoing activities of carrying on a business by the corporation, and

iii.  of the same type as services rendered by employees of entities carrying on the same type of business as the business referred to in subparagraph ii.

2003, c. 9, s. 57; 2004, c. 21, s. 148; 2004, c. 37, s. 90; 2005, c. 38, s. 100; 2006, c. 13, s. 56; 2009, c. 58, s. 87; 2010, c. 25, s. 71.

2009-12-04

737.18.29. In this Title,

“eligibility period” of an individual who is a foreign specialist for all or part of a taxation year, in relation to an employment the individual holds with a qualified corporation, means the period that, subject to the second paragraph, begins on the day on which the individual begins to perform the duties of that employment and ends on the earlier of

(a)  the day preceding the day on which the individual ceases to be a foreign specialist; and

(b)  the day on which that period totals five years, with reference to

i.   where the individual began to stay or became resident in Canada after 19 December 2002 by reason of an employment contract entered into after that date, the aggregate of all periods each of which is a preceding period within the meaning of section 737.18.29.1 that is established in respect of the individual, and

ii.  in any other case, the aggregate of all preceding periods each of which is

(1)  all or part of a preceding period, established in respect of the individual under this definition, to which an amount that the individual may deduct in computing the individual’s taxable income for a taxation year, under section 737.18.34, in relation to a preceding employment, may reasonably be attributed, or 

(2)  a preceding period within the meaning of section 737.18.29.1 that is established in respect of the individual since the last time the individual became resident in Canada, other than a preceding period described in subparagraph 1;

(c)  where the individual entered into the individual’s employment contract with the qualified corporation after 30 March 2004, the last day of the five-year period that begins,

i.  unless subparagraph ii applies, on the day on which the individual first begins to perform the duties of an employment for which the individual may deduct an amount in computing the individual’s taxable income for a taxation year under any of the sections mentioned in the third paragraph of section 737.19.2, or could so deduct such an amount if an employer had not failed to apply, in respect of the individual, for a qualification certificate or a certificate referred to in any of the sections mentioned in subparagraph ii of paragraph a of section 737.20, or

ii.  if the individual began to perform the duties of the employment referred to in subparagraph i under a contract of employment entered into with a particular corporation or partnership operating an international financial centre established by the individual and if the individual was resident in Canada immediately before the contract of employment was entered into and immediately before the individual took up that employment, on the day, determined without reference to paragraph a of section 8, on which the individual becomes resident in Canada to work on the establishment of that centre;

“eligible activities” of a recognized business carried on by a corporation in a taxation year means the activities relating to the operations carried out in the course of carrying on the recognized business;

“exemption period” applicable to a qualified corporation means the period that begins on 1 October 2000 and that ends on 31 December 2010;

“foreign specialist” for all or part of a taxation year means an individual in respect of whom the following conditions are met:

(a)  at a particular time after 26 April 2000 but before 1 January 2011, the individual takes up employment, as an employee, with a qualified corporation under an employment contract entered into after 26 April 2000;

(b)  the individual is not resident in Canada immediately before entering into the employment contract or immediately before taking up employment, as an employee, with the qualified corporation;

(c)  the individual works exclusively or almost exclusively for the qualified corporation from the particular time to the end of the year or the part of the year;

(d)  the qualified corporation obtained, in respect of the individual, a qualification certificate issued, for the taxation year, by the Minister of Finance, after having applied therefor in writing before 1 March of the following calendar year, and that qualification certificate, that was not revoked in respect of the year or the part of the year, certifies that the employment contract provides for at least 26 hours of work per week for a minimum duration of 40 weeks; and

(e)  the qualification certificate referred to in paragraph d and, where applicable, all the unrevoked qualification certificates obtained in respect of the individual for preceding taxation years, certify that, from the particular time to the end of the year or the part of the year,

i.  the individual’s duties for the qualified corporation consist exclusively or almost exclusively in undertaking, supervising or supporting work directly related to eligible activities of a recognized business carried on by the qualified corporation, and

ii.  the individual performs the duties in an establishment of the qualified corporation, situated within the urban agglomeration of Montréal, as described in section 4 of the Act respecting the exercise of certain municipal powers in certain urban agglomerations, where eligible activities of a recognized business carried on by the qualified corporation are carried out, or outside such an establishment, but in connection with the individual’s employment at such an establishment;

“prior loss attributable to eligible activities” of a qualified corporation for a taxation year means the amount determined by the formula

A − B;

“qualified corporation” for a taxation year means a corporation that, in the year, carries on a recognized business in Québec, carries out eligible activities of that recognized business in an establishment situated within the urban agglomeration of Montréal, as described in section 4 of the Act respecting the exercise of certain municipal powers in certain urban agglomerations (chapter E-20.001), and pays to employees of an establishment situated in Québec more than 50% of the wages it pays in the year;

“recognized business” carried on by a corporation in a taxation year means a stock exchange or a securities clearing-house, recognized by the Autorité des marchés financiers as a self-regulatory organization under section 17 of the Derivatives Act (chapter I-14.01) or under section 169 of the Securities Act (chapter V-1.1);

“specified period” of an individual in relation to an employment held by the individual with a qualified corporation means

(a)  where the individual entered into the individual’s employment contract with the qualified corporation after 30 March 2004, any part of the individual’s eligibility period in relation to that employment that is included in any of the five years of the period described in paragraph c of the definition of “eligibility period” ; and

(b)  in any other case, the individual’s eligibility period in relation to that employment;

“wages” means the income computed under Chapters I and II of Title II of Book III.

Where the qualification certificate referred to in paragraph d of the definition of “foreign specialist” in the first paragraph was not issued in respect of an individual for the taxation year that includes the particular day on which the individual begins to perform the duties of an employment the individual holds with a qualified corporation, the individual’s eligibility period in relation to that employment begins only on the first day of the first taxation year following the particular day for which such a qualification certificate was issued in respect of the individual.

In the formula provided for in the first paragraph in the definition of “prior loss attributable to eligible activities” of a qualified corporation for a particular taxation year,

(a)  A is the aggregate of all amounts each of which is the amount by which the amount determined under subparagraph b of the second paragraph of section 737.18.33, in respect of the qualified corporation, for a taxation year preceding the particular taxation year, exceeds the amount determined under subparagraph a of that second paragraph, in respect of the qualified corporation, for the preceding taxation year; and

(b)  B is the aggregate of all amounts each of which is the amount that reduced, because of C in the formula provided for in the first paragraph of section 737.18.33, the amount otherwise deductible by the qualified corporation, under that section, for a taxation year preceding the particular taxation year.

For the purposes of the definition of “qualified corporation” in the first paragraph and for the purpose of determining the proportion of the wages of the corporation’s employees that a corporation pays in a taxation year to employees of an establishment situated in Québec, the following rules apply:

(a)  an amount paid by the corporation to a person in the year under an agreement for services that would normally be rendered by the employees of the corporation is deemed to be wages paid to such an employee of the establishment of the corporation to which such services are reasonably attributable and to the extent that they are so attributable, except where a commission is paid to a person who is not an employee of the corporation; and

(b)  where an employee renders a service to or on behalf of a corporation that is not the employer of the employee, an amount that may reasonably be considered to be the wages earned by the employee for the rendering of the service is deemed, for the taxation year during which the wages are so paid to the employee, to be wages paid by the corporation for the service to an employee of an establishment of the corporation to which such service is reasonably attributable, to the extent that it is so attributable, and the employee is deemed to be an employee of the corporation, where the amount is not otherwise included in the aggregate of the wages paid by the corporation that are determined for the purposes of this Title and the service rendered by the employee is

i.  performed by the employee in the normal course of the employee’s duties for the employer,

ii.  rendered to or on behalf of the corporation as part of the regular, ongoing activities of carrying on a business by the corporation, and

iii.  of the same type as services rendered by employees of entities carrying on the same type of business as the business referred to in subparagraph ii.

2003, c. 9, s. 57; 2004, c. 21, s. 148; 2004, c. 37, s. 90; 2005, c. 38, s. 100; 2006, c. 13, s. 56; 2009, c. 58, s. 87.

2006-06-13

737.18.29. In this Title,

“eligibility period” of an individual who is a foreign specialist for all or part of a taxation year, in relation to an employment the individual holds with a qualified corporation, means the period that, subject to the second paragraph, begins on the day on which the individual begins to perform the duties of that employment and ends on the earlier of

(a)  the day preceding the day on which the individual ceases to be a foreign specialist; and

(b)  the day on which that period totals five years, with reference to

i.   where the individual began to stay or became resident in Canada after 19 December 2002 by reason of an employment contract entered into after that date, the aggregate of all periods each of which is a preceding period within the meaning of section 737.18.29.1 that is established in respect of the individual, and

ii.  in any other case, the aggregate of all preceding periods each of which is

(1)  all or part of a preceding period, established in respect of the individual under this definition, to which an amount that the individual may deduct in computing the individual’s taxable income for a taxation year, under section 737.18.34, in relation to a preceding employment, may reasonably be attributed, or 

(2)  a preceding period within the meaning of section 737.18.29.1 that is established in respect of the individual since the last time the individual became resident in Canada, other than a preceding period described in subparagraph 1;

(c)  where the individual entered into the individual’s employment contract with the qualified corporation after 30 March 2004, the last day of the five-year period that begins,

i.  unless subparagraph ii applies, on the day on which the individual first begins to perform the duties of an employment for which the individual may deduct an amount in computing the individual’s taxable income for a taxation year under any of the sections mentioned in the third paragraph of section 737.19.2, or could so deduct such an amount if an employer had not failed to apply, in respect of the individual, for a qualification certificate or a certificate referred to in any of the sections mentioned in subparagraph ii of paragraph a of section 737.20, or

ii.  if the individual began to perform the duties of the employment referred to in subparagraph i under a contract of employment entered into with a particular corporation or partnership operating an international financial centre established by the individual and if the individual was resident in Canada immediately before the contract of employment was entered into and immediately before the individual took up that employment, on the day, determined without reference to paragraph a of section 8, on which the individual becomes resident in Canada to work on the establishment of that centre;

“eligible activities” of a recognized business carried on by a corporation in a taxation year means the activities relating to the operations carried out in the course of carrying on the recognized business;

“exemption period” applicable to a qualified corporation means the period that begins on 1 October 2000 and that ends on 31 December 2010;

“foreign specialist” for all or part of a taxation year means an individual in respect of whom the following conditions are met:

(a)  at a particular time after 26 April 2000 but before 1 January 2011, the individual takes up employment, as an employee, with a qualified corporation under an employment contract entered into after 26 April 2000;

(b)  the individual is not resident in Canada immediately before entering into the employment contract or immediately before taking up employment, as an employee, with the qualified corporation;

(c)  the individual works exclusively or almost exclusively for the qualified corporation from the particular time to the end of the year or the part of the year;

(d)  the qualified corporation obtained, in respect of the individual, a qualification certificate issued, for the taxation year, by the Minister of Finance, after having applied therefor in writing before 1 March of the following calendar year, and that qualification certificate, that was not revoked in respect of the year or the part of the year, certifies that the employment contract provides for at least 26 hours of work per week for a minimum duration of 40 weeks; and

(e)  the qualification certificate referred to in paragraph d and, where applicable, all the unrevoked qualification certificates obtained in respect of the individual for preceding taxation years, certify that, from the particular time to the end of the year or the part of the year,

i.  the individual’s duties for the qualified corporation consist exclusively or almost exclusively in undertaking, supervising or supporting work directly related to eligible activities of a recognized business carried on by the qualified corporation, and

ii.  the individual performs the duties in an establishment of the qualified corporation, situated within the urban agglomeration of Montréal, as described in section 4 of the Act respecting the exercise of certain municipal powers in certain urban agglomerations, where eligible activities of a recognized business carried on by the qualified corporation are carried out, or outside such an establishment, but in connection with the individual’s employment at such an establishment;

“prior loss attributable to eligible activities” of a qualified corporation for a taxation year means the amount determined by the formula

A − B;

“qualified corporation” for a taxation year means a corporation that, in the year, carries on a recognized business in Québec, carries out eligible activities of that recognized business in an establishment situated within the urban agglomeration of Montréal, as described in section 4 of the Act respecting the exercise of certain municipal powers in certain urban agglomerations (chapter E-20.001), and pays to employees of an establishment situated in Québec more than 50% of the wages it pays in the year;

“recognized business” carried on by a corporation in a taxation year means a stock exchange or a securities clearing-house, recognized by the Autorité des marchés financiers as a self-regulatory organization under section 169 of the Securities Act (chapter V-1.1);

“specified period” of an individual in relation to an employment held by the individual with a qualified corporation means

(a)  where the individual entered into the individual’s employment contract with the qualified corporation after 30 March 2004, any part of the individual’s eligibility period in relation to that employment that is included in any of the five years of the period described in paragraph c of the definition of “eligibility period” ; and

(b)  in any other case, the individual’s eligibility period in relation to that employment;

“wages” means the income computed under Chapters I and II of Title II of Book III.

Where the qualification certificate referred to in paragraph d of the definition of “foreign specialist” in the first paragraph was not issued in respect of an individual for the taxation year that includes the particular day on which the individual begins to perform the duties of an employment the individual holds with a qualified corporation, the individual’s eligibility period in relation to that employment begins only on the first day of the first taxation year following the particular day for which such a qualification certificate was issued in respect of the individual.

In the formula provided for in the first paragraph in the definition of “prior loss attributable to eligible activities” of a qualified corporation for a particular taxation year,

(a)  A is the aggregate of all amounts each of which is the amount by which the amount determined under subparagraph b of the second paragraph of section 737.18.33, in respect of the qualified corporation, for a taxation year preceding the particular taxation year, exceeds the amount determined under subparagraph a of that second paragraph, in respect of the qualified corporation, for the preceding taxation year; and

(b)  B is the aggregate of all amounts each of which is the amount that reduced, because of C in the formula provided for in the first paragraph of section 737.18.33, the amount otherwise deductible by the qualified corporation, under that section, for a taxation year preceding the particular taxation year.

For the purposes of the definition of “qualified corporation” in the first paragraph and for the purpose of determining the proportion of the wages of the corporation’s employees that a corporation pays in a taxation year to employees of an establishment situated in Québec, the following rules apply:

(a)  an amount paid by the corporation to a person in the year under an agreement for services that would normally be rendered by the employees of the corporation is deemed to be wages paid to such an employee of the establishment of the corporation to which such services are reasonably attributable and to the extent that they are so attributable, except where a commission is paid to a person who is not an employee of the corporation; and

(b)  where an employee renders a service to or on behalf of a corporation that is not the employer of the employee, an amount that may reasonably be considered to be the wages earned by the employee for the rendering of the service is deemed, for the taxation year during which the wages are so paid to the employee, to be wages paid by the corporation for the service to an employee of an establishment of the corporation to which such service is reasonably attributable, to the extent that it is so attributable, and the employee is deemed to be an employee of the corporation, where the amount is not otherwise included in the aggregate of the wages paid by the corporation that are determined for the purposes of this Title and the service rendered by the employee is

i.  performed by the employee in the normal course of the employee’s duties for the employer,

ii.  rendered to or on behalf of the corporation as part of the regular, ongoing activities of carrying on a business by the corporation, and

iii.  of the same type as services rendered by employees of entities carrying on the same type of business as the business referred to in subparagraph ii.

2003, c. 9, s. 57; 2004, c. 21, s. 148; 2004, c. 37, s. 90; 2005, c. 38, s. 100; 2006, c. 13, s. 56.

2006-03-01

737.18.29. In this Title,

“eligibility period” of an individual who is a foreign specialist for all or part of a taxation year, in relation to an employment the individual holds with a qualified corporation, means the period that, subject to the second paragraph, begins on the day on which the individual begins to perform the duties of that employment and ends on the earlier of

(a)  the day preceding the day on which the individual ceases to be a foreign specialist; and

(b)  the day on which that period totals five years, with reference to

i.   where the individual began to stay or became resident in Canada after 19 December 2002 by reason of an employment contract entered into after that date, the aggregate of all periods each of which is a preceding period within the meaning of section 737.18.29.1 that is established in respect of the individual, and

ii.  in any other case, the aggregate of all preceding periods each of which is

(1)  all or part of a preceding period, established in respect of the individual under this definition, to which an amount that the individual may deduct in computing the individual’s taxable income for a taxation year, under section 737.18.34, in relation to a preceding employment, may reasonably be attributed, or 

(2)  a preceding period within the meaning of section 737.18.29.1 that is established in respect of the individual since the last time the individual became resident in Canada, other than a preceding period described in subparagraph 1;

(c)  where the individual entered into the individual’s employment contract with the qualified corporation after 30 March 2004, the last day of the five-year period that begins,

i.  unless subparagraph ii applies, on the day on which the individual first begins to perform the duties of an employment for which the individual may deduct an amount in computing the individual’s taxable income for a taxation year under any of the sections mentioned in the third paragraph of section 737.19.2, or could so deduct such an amount if an employer had not failed to apply, in respect of the individual, for a qualification certificate or a certificate referred to in any of the sections mentioned in subparagraph ii of paragraph a of section 737.20, or

ii.  if the individual began to perform the duties of the employment referred to in subparagraph i under a contract of employment entered into with a particular corporation or partnership operating an international financial centre established by the individual and if the individual was resident in Canada immediately before the contract of employment was entered into and immediately before the individual took up that employment, on the day, determined without reference to paragraph a of section 8, on which the individual becomes resident in Canada to work on the establishment of that centre;

“eligible activities” of a recognized business carried on by a corporation in a taxation year means the activities relating to the operations carried out in the course of carrying on the recognized business;

“exemption period” applicable to a qualified corporation means the period that begins on 1 October 2000 and that ends on 31 December 2010;

“foreign specialist” for all or part of a taxation year means an individual in respect of whom the following conditions are met:

(a)  at a particular time after 26 April 2000 but before 1 January 2011, the individual takes up employment, as an employee, with a qualified corporation under an employment contract entered into after 26 April 2000;

(b)  the individual is not resident in Canada immediately before entering into the employment contract or immediately before taking up employment, as an employee, with the qualified corporation;

(c)  the individual works exclusively or almost exclusively for the qualified corporation from the particular time to the end of the year or the part of the year;

(d)  the qualified corporation obtained, in respect of the individual, a qualification certificate issued, for the taxation year, by the Minister of Finance, after having applied therefor in writing before 1 March of the following calendar year, and that qualification certificate, that was not revoked in respect of the year or the part of the year, certifies that the employment contract provides for at least 26 hours of work per week for a minimum duration of 40 weeks; and

(e)  the qualification certificate referred to in paragraph d and, where applicable, all the unrevoked qualification certificates obtained in respect of the individual for preceding taxation years, certify that, from the particular time to the end of the year or the part of the year,

i.  the individual’s duties for the qualified corporation consist exclusively or almost exclusively in undertaking, supervising or supporting work directly related to eligible activities of a recognized business carried on by the qualified corporation, and

ii.  the individual performs the duties in an establishment of the qualified corporation, situated in the territory of Ville de Montréal, where eligible activities of a recognized business carried on by the qualified corporation are carried out, or outside such an establishment, but in connection with the individual’s employment at such an establishment;

“prior loss attributable to eligible activities” of a qualified corporation for a taxation year means the amount determined by the formula

A - B;

“qualified corporation” for a taxation year means a corporation that, in the year, carries on a recognized business in Québec, carries out eligible activities of that recognized business in an establishment situated in the territory of Ville de Montréal and pays to employees of an establishment situated in Québec more than 50% of the wages it pays in the year;

“recognized business” carried on by a corporation in a taxation year means a stock exchange or a securities clearing-house, recognized by the Autorité des marchés financiers as a self-regulatory organization under section 169 of the Securities Act (chapter V-1.1);

“specified period” of an individual in relation to an employment held by the individual with a qualified corporation means

(a)  where the individual entered into the individual’s employment contract with the qualified corporation after 30 March 2004, any part of the individual’s eligibility period in relation to that employment that is included in any of the five years of the period described in paragraph c of the definition of "eligibility period"; and

(b)  in any other case, the individual’s eligibility period in relation to that employment;

“wages” means the income computed under Chapters I and II of Title II of Book III.

Where the qualification certificate referred to in paragraph d of the definition of "foreign specialist" in the first paragraph was not issued in respect of an individual for the taxation year that includes the particular day on which the individual begins to perform the duties of an employment the individual holds with a qualified corporation, the individual’s eligibility period in relation to that employment begins only on the first day of the first taxation year following the particular day for which such a qualification certificate was issued in respect of the individual.

In the formula provided for in the first paragraph in the definition of "prior loss attributable to eligible activities" of a qualified corporation for a particular taxation year,

(a)  A is the aggregate of all amounts each of which is the amount by which the amount determined under subparagraph b of the second paragraph of section 737.18.33, in respect of the qualified corporation, for a taxation year preceding the particular taxation year, exceeds the amount determined under subparagraph a of that second paragraph, in respect of the qualified corporation, for the preceding taxation year; and

(b)  B is the aggregate of all amounts each of which is the amount that reduced, because of C in the formula provided for in the first paragraph of section 737.18.33, the amount otherwise deductible by the qualified corporation, under that section, for a taxation year preceding the particular taxation year.

For the purposes of the definition of "qualified corporation" in the first paragraph and for the purpose of determining the proportion of the wages of the corporation’s employees that a corporation pays in a taxation year to employees of an establishment situated in Québec, the following rules apply:

(a)  an amount paid by the corporation to a person in the year under an agreement for services that would normally be rendered by the employees of the corporation is deemed to be wages paid to such an employee of the establishment of the corporation to which such services are reasonably attributable and to the extent that they are so attributable, except where a commission is paid to a person who is not an employee of the corporation; and

(b)  where an employee renders a service to or on behalf of a corporation that is not the employer of the employee, an amount that may reasonably be considered to be the wages earned by the employee for the rendering of the service is deemed, for the taxation year during which the wages are so paid to the employee, to be wages paid by the corporation for the service to an employee of an establishment of the corporation to which such service is reasonably attributable, to the extent that it is so attributable, and the employee is deemed to be an employee of the corporation, where the amount is not otherwise included in the aggregate of the wages paid by the corporation that are determined for the purposes of this Title and the service rendered by the employee is

i.  performed by the employee in the normal course of the employee’s duties for the employer,

ii.  rendered to or on behalf of the corporation as part of the regular, ongoing activities of carrying on a business by the corporation, and

iii.  of the same type as services rendered by employees of entities carrying on the same type of business as the business referred to in subparagraph ii.

2003, c. 9, s. 57; 2004, c. 21, s. 148; 2004, c. 37, s. 90; 2005, c. 38, s. 100.