I-3 - Taxation Act

Section 737.18.9.2 Disposition versions

2006-06-13

737.18.9.2. For the purposes of this Title, where, at any time after 11 June 2003, control of a corporation that carries on at that time a recognized business or is a member of a partnership that carries on at that time a recognized business is acquired by a person or group of persons, the following rules apply:

(a)  where the recognized business is carried on by the corporation,

i.  the exemption period of an individual, in relation to an employment the individual holds with the corporation, is deemed to end immediately before that time, and

ii.  the base period applicable to the corporation, in respect of the eligible activities of the recognized business, is deemed to end immediately before that time; and

(b)  where the recognized business is carried on by the partnership, the base period applicable to the partnership, in respect of the eligible activities of the recognized business, is deemed, for the purpose of computing the amount that the corporation may deduct under section 737.18.11 for the taxation year in which the fiscal period of the partnership that includes that time ends and for a subsequent taxation year, to end immediately before that time.

However, the first paragraph does not apply if the acquisition of control

(a)  occurs before 1 July 2004 and Investissement Québec certifies that it results from a transaction that was sufficiently advanced on 11 June 2003 and was binding on the parties on that date;

(b)  is by a corporation carrying on at that time a recognized business, by a person or group of persons that controls such a corporation, or by a group of persons each member of which is such a corporation or a person who, alone or together with other members of the group, controls such a corporation;

(c)  derives from the exercise after 11 June 2003 of one or more rights described in paragraph b of section 20 that were acquired before 12 June 2003; or

(d)  derives from the performance after 11 June 2003 of one or more obligations described in the third paragraph of section 21.3.5 that were contracted before 12 June 2003.

2004, c. 21, s. 141; 2005, c. 23, s. 83; 2006, c. 13, s. 53.

2006-03-01

737.18.9.2. For the purposes of this Title, where, at any time after 11 June 2003, control of a corporation that carries on at that time a recognized business or is a member of a partnership that carries on at that time a recognized business is acquired by a person or group of persons, otherwise than under the circumstances described in the second paragraph, the following rules apply:

(a)  where the recognized business is carried on by the corporation,

i.  the exemption period of an individual, in relation to an employment the individual holds with the corporation, is deemed to end immediately before that time, and

ii.  the base period applicable to the corporation, in respect of the eligible activities of the recognized business, is deemed to end immediately before that time; and

(b)  where the recognized business is carried on by the partnership, the base period applicable to the partnership, in respect of the eligible activities of the recognized business, is deemed, for the purpose of computing the amount that the corporation may deduct under section 737.18.11 for the taxation year in which the fiscal period of the partnership that includes that time ends and for a subsequent taxation year, to end immediately before that time.

The first paragraph does not apply if acquiring control of the corporation

(a)  occurs after 11 June 2003 and before 1 July 2004 where Investissement Québec certifies that the acquisition of control results from a transaction that was sufficiently advanced on 11 June 2003 and was binding on the parties on that date;

(b)  is by a corporation carrying on at that time a recognized business, or by a group of persons all the members of which are corporations carrying on at that time a recognized business, or

(c)  derives from the exercise after 11 June 2003 of one or more rights described in paragraph b of section 20 that were acquired before 12 June 2003.

2004, c. 21, s. 141; 2005, c. 23, s. 83.