I-3 - Taxation Act

Section 737.22.0.1 Disposition versions

2012-05-09

737.22.0.1. In this Title,

“biotechnology development centre” has the meaning assigned by the first paragraph of section 771.1;

“eligible activity” of an eligible employer for a taxation year means

(a)  an eligible activity of the eligible employer for that year within the meaning of

i.  the first paragraph of section 1029.8.36.0.3.28, as it read for the year, where the eligible employer is a corporation referred to in paragraph b of the definition of “eligible employer”,

ii.  the first paragraph of section 1029.8.36.0.3.38, as it read for the year, where the eligible employer is a corporation referred to in paragraph c of the definition of “eligible employer”, or

iii.  the first paragraph of section 1029.8.36.0.3.46, where the eligible employer is a corporation referred to in paragraph e of the definition of “eligible employer”;

(b)  a specified activity of the eligible employer for the year within the meaning of section 1029.8.36.0.17, where the eligible employer is a corporation referred to in paragraph d or f of the definition of “eligible employer”;

(c)  an activity of a recognized business of the eligible employer for that year within the meaning of

i.  the first paragraph of section 1029.8.36.0.3.60, where the eligible employer is a corporation referred to in paragraph g of the definition of “eligible employer”, or

ii.  the first paragraph of section 1029.8.36.72.83, where the eligible employer is a corporation referred to in paragraph h of the definition of “eligible employer”; or

(d)  an activity of a recognized business of the eligible employer for that year within the meaning of the first paragraph of section 1029.8.36.72.56 that is a recognized business described

i.  in paragraph a of the definition of “recognized business” in that first paragraph, if the eligible employer is a corporation described in paragraph i of the definition of “eligible employer”, or

ii.  in paragraph b of the definition of “recognized business” in that first paragraph, if the eligible employer is a corporation described in paragraph j of the definition of “eligible employer”;

“eligible employer” for a taxation year means

(a)  a corporation that would be an exempt corporation within the meaning of sections 771.12 and 771.13 for that year if section 771.12 were read without reference to paragraph e and paragraph d were replaced by the following paragraph:

“(d) the year is comprised in whole or in part in the corporation’s eligibility period within the meaning assigned by section 1029.8.36.0.17, without reference to the sixth paragraph, if the definition of “eligibility period” in the first paragraph of that section applies for the purpose of determining the amount referred to in paragraph a of that definition.”;

(b)  where the taxation year of the corporation begins before 21 December 2001, a qualified corporation within the meaning of the first paragraph of section 1029.8.36.0.3.28, as it read for that taxation year, that holds an unrevoked certificate issued by Investissement Québec for the purposes of Division II.6.0.1.4 of Chapter III.1 of Title III of Book IX, as it read before being repealed, certifying that an eligible activity is carried on by the qualified corporation for that year;

(c)  where the taxation year of the corporation begins before 21 December 2001, a qualified corporation within the meaning of the first paragraph of section 1029.8.36.0.3.38, as it read for that taxation year, that holds an unrevoked certificate issued by Investissement Québec for the purposes of Division II.6.0.1.5 of Chapter III.1 of Title III of Book IX, as it read before being repealed, certifying that an eligible activity is carried on by the qualified corporation for that year;

(d)  a corporation that is

i.  where this paragraph applies after 29 March 2001, a specified corporation for the year within the meaning of the first paragraph of section 1029.8.36.0.17, other than a corporation that carries on or may carry on its business in a biotechnology development centre, and

ii.  in any other case, a specified corporation within the meaning of the first paragraph of section 1029.8.36.0.17 that is not a corporation referred to in paragraph a for the year and that holds an unrevoked certificate issued by Investissement Québec for the purposes of Division II.6.0.3 of Chapter III.1 of Title III of Book IX, certifying that the specified corporation carries out or may carry out in that year a specified activity in a building housing all or any part of a new economy centre;

(e)  a qualified corporation within the meaning of the first paragraph of section 1029.8.36.0.3.46 that holds a valid qualification certificate issued by the Minister of Finance for the purposes of Division II.6.0.1.6 of Chapter III.1 of Title III of Book IX;

(f)  a specified corporation for the year within the meaning of section 1029.8.36.0.17 that carries on or may carry on its business in a biotechnology development centre;

(g)  a qualified corporation, for the calendar year ending in the taxation year, within the meaning of the first paragraph of section 1029.8.36.0.3.60 that, in that taxation year, carries on a recognized business within the meaning of that paragraph;

(h)  a qualified corporation, for the calendar year ending in the taxation year, within the meaning of the first paragraph of section 1029.8.36.72.83 that, in that taxation year, carries on a recognized business within the meaning of that paragraph;

(i)  a qualified corporation, for the calendar year ending in the taxation year, within the meaning of the first paragraph of section 1029.8.36.72.56 that, in the taxation year, carries on a recognized business, within the meaning of that paragraph, that is described in paragraph a of the definition of “recognized business” in that first paragraph; or

(j)  a qualified corporation, for the calendar year ending in the taxation year, within the meaning of the first paragraph of section 1029.8.36.72.56 that, in the taxation year, carries on a recognized business, within the meaning of that paragraph, that is described in paragraph b of the definition of “recognized business” in that first paragraph;

“eligible income”, for a taxation year, of an individual who is a foreign specialist at any time, in relation to an employment the individual holds with an eligible employer, means the aggregate of all amounts paid as wages in the year by that employer and that may reasonably be attributed to the foreign specialist’s specialized activity period in relation to that employment;

“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 the individual takes up employment, as an employee, with an eligible employer under an employment contract they have entered into in the hiring period of the eligible employer;

(a.1)  the individual took up employment, as an employee, with the eligible employer before 2 September 2003, except if the eligible employer was, at the time the individual took up employment, a corporation referred to in subparagraph iii of paragraph a of section 771.12 or, where the employment contract was entered into after 30 March 2004, a corporation referred to in paragraph f of the definition of “eligible employer”;

(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 eligible employer;

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

(d)  the eligible employer has obtained in respect of the individual, for the purposes of this Title, a certificate issued by Investissement Québec for the taxation year and the certificate and, if applicable, all the similar 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);

“hiring period” of an eligible employer means

(a)  where the eligible employer is a corporation referred to in subparagraph i of paragraph a of section 771.12, the period that begins on 26 March 1997 and that ends on 12 June 2003;

(b)  where the eligible employer is a corporation referred to in subparagraph ii of paragraph a of section 771.12, the period that begins on 10 March 1999 and that ends on 12 June 2003;

(c)  where the eligible employer is a corporation referred to in paragraph b or c of the definition of “eligible employer”, the period that begins on 15 March 2000 and that ends on the last day of the last taxation year of the corporation that begins before 21 December 2001;

(d)  where the eligible employer is a corporation referred to in paragraph d of the definition of “eligible employer”, the period that begins on 15 March 2000 and that ends on 12 June 2003;

(e)  where the eligible employer is a corporation referred to in paragraph e of the definition of “eligible employer”, the period that begins on 12 May 2000 and that ends on 12 June 2003;

(f)  where the eligible employer is a corporation referred to in subparagraph iii of paragraph a of section 771.12, the period that begins on 30 March 2001;

(g)  where the eligible employer is a corporation referred to in paragraph f of the definition of “eligible employer”, the period that begins on 30 March 2001 and that ends on 12 June 2003 or the period that begins on 31 March 2004; and

(h)  where the eligible employer is a corporation referred to in any of paragraphs g to j of the definition of “eligible employer”, the period that begins on 20 March 2002 and that ends on 12 June 2003;

“new economy centre” has the meaning assigned by section 771.1;

“specialized activity 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 an eligible employer, 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;

(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 737.22.0.1.1 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 737.22.0.3, in relation to a preceding employment, may reasonably be attributed; or

(2)  a preceding period within the meaning of section 737.22.0.1.1 that is established in respect of the individual since the last time the individual became resident in Canada, other than a period described in subparagraph 1; and

(c)  where the individual entered into the individual’s employment contract with the eligible employer 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;

“specified period” of an individual in relation to an employment held by the individual with an eligible employer means

(a)  where the individual entered into the individual’s employment contract with the eligible employer after 30 March 2004, any part of the individual’s specialized activity 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 “specialized activity period”; and

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

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

Where the 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 an eligible employer, the specialized activity period of the individual in relation to that employment begins only on the first day of the first taxation year following the particular day for which such a certificate has been issued in respect of the individual.

For the purposes of the definition of “eligible income” in the first paragraph, any benefit that an individual is deemed to receive, in a particular taxation year, in connection with an employment held by the individual with an eligible employer, because of the application of any of sections 49 and 50 to 52.1, is considered to be included in the amounts that are paid to the individual as wages in the year by that employer.

1997, c. 85, s. 116; 1998, c. 17, s. 64; 1999, c. 86, s. 99; 2000, c. 39, s. 55; 2001, c. 51, s. 43; 2001, c. 69, s. 12; 2002, c. 9, s. 16; 2003, c. 9, s. 61; 2004, c. 21, s. 174; 2005, c. 23, s. 88; 2005, c. 38, s. 121; 2007, c. 12, s. 84; 2012, c. 8, s. 91.

2007-11-07

737.22.0.1. In this Title,

“biotechnology development centre” has the meaning assigned by the first paragraph of section 771.1;

“eligible activity” of an eligible employer for a taxation year means

(a)  an eligible activity of the eligible employer for that year within the meaning of

i.  the first paragraph of section 1029.8.36.0.3.28, as it read for the year, where the eligible employer is a corporation referred to in paragraph b of the definition of “eligible employer”,

ii.  the first paragraph of section 1029.8.36.0.3.38, as it read for the year, where the eligible employer is a corporation referred to in paragraph c of the definition of “eligible employer”, or

iii.  the first paragraph of section 1029.8.36.0.3.46, where the eligible employer is a corporation referred to in paragraph e of the definition of “eligible employer” ;

(b)  a specified activity of the eligible employer for the year within the meaning of section 1029.8.36.0.17, where the eligible employer is a corporation referred to in paragraph d or f of the definition of “eligible employer” ;

(c)  an activity of a recognized business of the eligible employer for that year within the meaning of

i.  the first paragraph of section 1029.8.36.0.3.60, where the eligible employer is a corporation referred to in paragraph g of the definition of “eligible employer”, or

ii.  the first paragraph of section 1029.8.36.72.83, where the eligible employer is a corporation referred to in paragraph h of the definition of “eligible employer” ; or

(d)  an activity of a recognized business of the eligible employer for that year within the meaning of the first paragraph of section 1029.8.36.72.56 that is a recognized business described

i.  in paragraph a of the definition of “recognized business” in that first paragraph, if the eligible employer is a corporation described in paragraph i of the definition of “eligible employer”, or

ii.  in paragraph b of the definition of “recognized business” in that first paragraph, if the eligible employer is a corporation described in paragraph j of the definition of “eligible employer” ;

“eligible employer” for a taxation year means

(a)  a corporation that would be an exempt corporation within the meaning of sections 771.12 and 771.13 for that year if section 771.12 were read without reference to paragraph e and paragraph d were replaced by the following paragraph:

“(d) the year is comprised in whole or in part in the corporation’s eligibility period within the meaning assigned by section 1029.8.36.0.17, without reference to the sixth paragraph, if the definition of “eligibility period” in the first paragraph of that section applies for the purpose of determining the amount referred to in paragraph a of that definition.”;

(b)  where the taxation year of the corporation begins before 21 December 2001, a qualified corporation within the meaning of the first paragraph of section 1029.8.36.0.3.28, as it read for that taxation year, that holds an unrevoked certificate issued by Investissement Québec for the purposes of Division II.6.0.1.4 of Chapter III.1 of Title III of Book IX, as it read before being repealed, certifying that an eligible activity is carried on by the qualified corporation for that year;

(c)  where the taxation year of the corporation begins before 21 December 2001, a qualified corporation within the meaning of the first paragraph of section 1029.8.36.0.3.38, as it read for that taxation year, that holds an unrevoked certificate issued by Investissement Québec for the purposes of Division II.6.0.1.5 of Chapter III.1 of Title III of Book IX, as it read before being repealed, certifying that an eligible activity is carried on by the qualified corporation for that year;

(d)  a corporation that is

i.  where this paragraph applies after 29 March 2001, a specified corporation for the year within the meaning of the first paragraph of section 1029.8.36.0.17, other than a corporation that carries on or may carry on its business in a biotechnology development centre, and

ii.  in any other case, a specified corporation within the meaning of the first paragraph of section 1029.8.36.0.17 that is not a corporation referred to in paragraph a for the year and that holds an unrevoked certificate issued by Investissement Québec for the purposes of Division II.6.0.3 of Chapter III.1 of Title III of Book IX, certifying that the specified corporation carries out or may carry out in that year a specified activity in a building housing all or any part of a new economy centre;

(e)  a qualified corporation within the meaning of the first paragraph of section 1029.8.36.0.3.46 that holds a valid qualification certificate issued by the Minister of Finance for the purposes of Division II.6.0.1.6 of Chapter III.1 of Title III of Book IX;

(f)  a specified corporation for the year within the meaning of section 1029.8.36.0.17 that carries on or may carry on its business in a biotechnology development centre;

(g)  a qualified corporation, for the calendar year ending in the taxation year, within the meaning of the first paragraph of section 1029.8.36.0.3.60 that, in that taxation year, carries on a recognized business within the meaning of that paragraph;

(h)  a qualified corporation, for the calendar year ending in the taxation year, within the meaning of the first paragraph of section 1029.8.36.72.83 that, in that taxation year, carries on a recognized business within the meaning of that paragraph;

(i)  a qualified corporation, for the calendar year ending in the taxation year, within the meaning of the first paragraph of section 1029.8.36.72.56 that, in the taxation year, carries on a recognized business, within the meaning of that paragraph, that is described in paragraph a of the definition of “recognized business” in that first paragraph; or

(j)  a qualified corporation, for the calendar year ending in the taxation year, within the meaning of the first paragraph of section 1029.8.36.72.56 that, in the taxation year, carries on a recognized business, within the meaning of that paragraph, that is described in paragraph b of the definition of “recognized business” in that first paragraph;

“eligible income”, for a taxation year, of an individual who is a foreign specialist at any time, in relation to an employment the individual holds with an eligible employer, means the aggregate of all amounts paid as wages in the year by that employer and that may reasonably be attributed to the foreign specialist’s specialized activity period in relation to that employment;

“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 the individual takes up employment, as an employee, with an eligible employer under an employment contract they have entered into in the hiring period of the eligible employer;

(a.1)  the individual took up employment, as an employee, with the eligible employer before 2 September 2003, except if the eligible employer was, at the time the individual took up employment, a corporation referred to in subparagraph iii of paragraph a of section 771.12 or, where the employment contract was entered into after 30 March 2004, a corporation referred to in paragraph f of the definition of “eligible employer” ;

(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 eligible employer;

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

(d)  the eligible employer obtained in respect of the individual a certificate issued, for the taxation year, by Investissement Québec, after having made the application therefor in writing before 1 March of the following calendar year, and the certificate, that has not been revoked in respect of the year or the part of the year, and, where applicable, all the unrevoked 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’s duties as an employee of the eligible employer consist exclusively or almost exclusively in carrying on

i.  training activities,

ii.  research and development,

iii.  specialized tasks with respect to innovation management, marketing, transfer of technologies or innovation financing,

iii.1.  where the eligible employer is a corporation referred to in any of paragraphs e, g and h of the definition of “eligible employer”, development and operation of technological systems or infrastructures,

iii.2.  where the eligible employer is a corporation referred to in subparagraph iii of paragraph a of section 771.12 or in any of paragraphs f, i and j of the definition of “eligible employer”, another activity in connection with biotechnology, or

iv.  any combination of the activities referred to in subparagraphs i to iii and

(1)  in subparagraph iii.1, where the eligible employer is a corporation referred to in any of paragraphs e, g and h of the definition of “eligible employer”, or

(2)  in subparagraph iii.2, where the eligible employer is a corporation referred to in subparagraph iii of paragraph a of section 771.12 or in any of paragraphs f, i and j of the definition of “eligible employer” ; and

(e)  where the eligible employer is a corporation described in any of paragraphs d to j of the definition of “eligible employer”, the certificates referred to in paragraph d of this definition also certify that the individual’s duties for the individual’s employer are, from the particular time to the end of the year or the part of the year, exclusively or almost exclusively attributable to eligible activities of the individual’s employer;

“hiring period” of an eligible employer means

(a)  where the eligible employer is a corporation referred to in subparagraph i of paragraph a of section 771.12, the period that begins on 26 March 1997 and that ends on 12 June 2003;

(b)  where the eligible employer is a corporation referred to in subparagraph ii of paragraph a of section 771.12, the period that begins on 10 March 1999 and that ends on 12 June 2003;

(c)  where the eligible employer is a corporation referred to in paragraph b or c of the definition of “eligible employer”, the period that begins on 15 March 2000 and that ends on the last day of the last taxation year of the corporation that begins before 21 December 2001;

(d)  where the eligible employer is a corporation referred to in paragraph d of the definition of “eligible employer”, the period that begins on 15 March 2000 and that ends on 12 June 2003;

(e)  where the eligible employer is a corporation referred to in paragraph e of the definition of “eligible employer”, the period that begins on 12 May 2000 and that ends on 12 June 2003;

(f)  where the eligible employer is a corporation referred to in subparagraph iii of paragraph a of section 771.12, the period that begins on 30 March 2001;

(g)  where the eligible employer is a corporation referred to in paragraph f of the definition of “eligible employer”, the period that begins on 30 March 2001 and that ends on 12 June 2003 or the period that begins on 31 March 2004; and

(h)  where the eligible employer is a corporation referred to in any of paragraphs g to j of the definition of “eligible employer”, the period that begins on 20 March 2002 and that ends on 12 June 2003;

“new economy centre” has the meaning assigned by section 771.1;

“specialized activity 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 an eligible employer, 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;

(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 737.22.0.1.1 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 737.22.0.3, in relation to a preceding employment, may reasonably be attributed; or

(2)  a preceding period within the meaning of section 737.22.0.1.1 that is established in respect of the individual since the last time the individual became resident in Canada, other than a period described in subparagraph 1; and

(c)  where the individual entered into the individual’s employment contract with the eligible employer 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;

“specified period” of an individual in relation to an employment held by the individual with an eligible employer means

(a)  where the individual entered into the individual’s employment contract with the eligible employer after 30 March 2004, any part of the individual’s specialized activity 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 “specialized activity period” ; and

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

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

Where the 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 an eligible employer, the specialized activity period of the individual in relation to that employment begins only on the first day of the first taxation year following the particular day for which such a certificate has been issued in respect of the individual.

For the purposes of the definition of “eligible income” in the first paragraph, any benefit that an individual is deemed to receive, in a particular taxation year, in connection with an employment held by the individual with an eligible employer, because of the application of any of sections 49 and 50 to 52.1, is considered to be included in the amounts that are paid to the individual as wages in the year by that employer.

1997, c. 85, s. 116; 1998, c. 17, s. 64; 1999, c. 86, s. 99; 2000, c. 39, s. 55; 2001, c. 51, s. 43; 2001, c. 69, s. 12; 2002, c. 9, s. 16; 2003, c. 9, s. 61; 2004, c. 21, s. 174; 2005, c. 23, s. 88; 2005, c. 38, s. 121; 2007, c. 12, s. 84.

2006-03-01

737.22.0.1. In this Title,

“biotechnology development centre” has the meaning assigned by the first paragraph of section 771.1;

“eligible activity” of an eligible employer for a taxation year means

(a)  an eligible activity of the eligible employer for that year within the meaning of

i.  the first paragraph of section 1029.8.36.0.3.28, as it read for the year, where the eligible employer is a corporation referred to in paragraph b of the definition of “eligible employer”,

ii.  the first paragraph of section 1029.8.36.0.3.38, as it read for the year, where the eligible employer is a corporation referred to in paragraph c of the definition of “eligible employer”, or

iii.  the first paragraph of section 1029.8.36.0.3.46, where the eligible employer is a corporation referred to in paragraph e of the definition of “eligible employer” ;

(b)  a specified activity of the eligible employer for the year within the meaning of the first paragraph of section 1029.8.36.0.17, where the eligible employer is a corporation referred to in paragraph d or f of the definition of “eligible employer” ;

(c)  an activity of a recognized business of the eligible employer for that year within the meaning of

i.  the first paragraph of section 1029.8.36.0.3.60, where the eligible employer is a corporation referred to in paragraph g of the definition of “eligible employer”, or

ii.  the first paragraph of section 1029.8.36.72.83, where the eligible employer is a corporation referred to in paragraph h of the definition of “eligible employer” ; or

(d)  an activity of a recognized business of the eligible employer for that year within the meaning of the first paragraph of section 1029.8.36.72.56 that is a recognized business described

i.  in paragraph a of the definition of “recognized business” in that first paragraph, if the eligible employer is a corporation described in paragraph i of the definition of “eligible employer”, or

ii.  in paragraph b of the definition of “recognized business” in that first paragraph, if the eligible employer is a corporation described in paragraph j of the definition of “eligible employer” ;

“eligible employer” for a taxation year means

(a)  a corporation that would be an exempt corporation within the meaning of sections 771.12 and 771.13 for that year if section 771.12 were read without reference to paragraphs d and e;

(b)  where the taxation year of the corporation begins before 21 December 2001, a qualified corporation within the meaning of the first paragraph of section 1029.8.36.0.3.28, as it read for that taxation year, that holds an unrevoked certificate issued by Investissement Québec for the purposes of Division II.6.0.1.4 of Chapter III.1 of Title III of Book IX, as it read before being repealed, certifying that an eligible activity is carried on by the qualified corporation for that year;

(c)  where the taxation year of the corporation begins before 21 December 2001, a qualified corporation within the meaning of the first paragraph of section 1029.8.36.0.3.38, as it read for that taxation year, that holds an unrevoked certificate issued by Investissement Québec for the purposes of Division II.6.0.1.5 of Chapter III.1 of Title III of Book IX, as it read before being repealed, certifying that an eligible activity is carried on by the qualified corporation for that year;

(d)  a corporation that is

i.  where this paragraph applies after 29 March 2001, a specified corporation for the year within the meaning of the first paragraph of section 1029.8.36.0.17, other than a corporation that carries on or may carry on its business in a biotechnology development centre, and

ii.  in any other case, a specified corporation within the meaning of the first paragraph of section 1029.8.36.0.17 that is not a corporation referred to in paragraph a for the year and that holds an unrevoked certificate issued by Investissement Québec for the purposes of Division II.6.0.3 of Chapter III.1 of Title III of Book IX, certifying that the specified corporation carries out or may carry out in that year a specified activity in a building housing all or any part of a new economy centre;

(e)  a qualified corporation within the meaning of the first paragraph of section 1029.8.36.0.3.46 that holds a valid qualification certificate issued by the Minister of Finance for the purposes of Division II.6.0.1.6 of Chapter III.1 of Title III of Book IX;

(f)  a specified corporation for the year within the meaning of section 1029.8.36.0.17 that carries on or may carry on its business in a biotechnology development centre;

(g)  a qualified corporation, for the calendar year ending in the taxation year, within the meaning of the first paragraph of section 1029.8.36.0.3.60 that, in that taxation year, carries on a recognized business within the meaning of that paragraph;

(h)  a qualified corporation, for the calendar year ending in the taxation year, within the meaning of the first paragraph of section 1029.8.36.72.83 that, in that taxation year, carries on a recognized business within the meaning of that paragraph;

(i)  a qualified corporation, for the calendar year ending in the taxation year, within the meaning of the first paragraph of section 1029.8.36.72.56 that, in the taxation year, carries on a recognized business, within the meaning of that paragraph, that is described in paragraph a of the definition of “recognized business” in that first paragraph; or

(j)  a qualified corporation, for the calendar year ending in the taxation year, within the meaning of the first paragraph of section 1029.8.36.72.56 that, in the taxation year, carries on a recognized business, within the meaning of that paragraph, that is described in paragraph b of the definition of “recognized business” in that first paragraph;

“eligible income”, for a taxation year, of an individual who is a foreign specialist at any time, in relation to an employment the individual holds with an eligible employer, means the aggregate of all amounts paid as wages in the year by that employer and that may reasonably be attributed to the foreign specialist’s specialized activity period in relation to that employment;

“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 the individual takes up employment, as an employee, with an eligible employer under an employment contract they have entered into in the hiring period of the eligible employer;

(a.1)  the individual took up employment, as an employee, with the eligible employer before 2 September 2003, except if the eligible employer was, at the time the individual took up employment, a corporation referred to in subparagraph iii of paragraph a of section 771.12 or, where the employment contract was entered into after 30 March 2004, a corporation referred to in paragraph f of the definition of “eligible employer” ;

(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 eligible employer;

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

(d)  the eligible employer obtained in respect of the individual a certificate issued, for the taxation year, by Investissement Québec, after having made the application therefor in writing before 1 March of the following calendar year, and the certificate, that has not been revoked in respect of the year or the part of the year, and, where applicable, all the unrevoked 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’s duties as an employee of the eligible employer consist exclusively or almost exclusively in carrying on

i.  training activities,

ii.  research and development,

iii.  specialized tasks with respect to innovation management, marketing, transfer of technologies or innovation financing,

iii.1.  where the eligible employer is a corporation referred to in any of paragraphs e, g and h of the definition of “eligible employer”, development and operation of technological systems or infrastructures,

iii.2.  where the eligible employer is a corporation referred to in subparagraph iii of paragraph a of section 771.12 or in any of paragraphs f, i and j of the definition of “eligible employer”, another activity in connection with biotechnology, or

iv.  any combination of the activities referred to in subparagraphs i to iii and

(1)  in subparagraph iii.1, where the eligible employer is a corporation referred to in any of paragraphs e, g and h of the definition of “eligible employer”, or

(2)  in subparagraph iii.2, where the eligible employer is a corporation referred to in subparagraph iii of paragraph a of section 771.12 or in any of paragraphs f, i and j of the definition of “eligible employer” ; and

(e)  where the eligible employer is a corporation described in any of paragraphs d to j of the definition of “eligible employer”, the certificates referred to in paragraph d of this definition also certify that the individual’s duties for the individual’s employer are, from the particular time to the end of the year or the part of the year, exclusively or almost exclusively attributable to eligible activities of the individual’s employer;

“hiring period” of an eligible employer means

(a)  where the eligible employer is a corporation referred to in subparagraph i of paragraph a of section 771.12, the period that begins on 26 March 1997 and that ends on 12 June 2003;

(b)  where the eligible employer is a corporation referred to in subparagraph ii of paragraph a of section 771.12, the period that begins on 10 March 1999 and that ends on 12 June 2003;

(c)  where the eligible employer is a corporation referred to in paragraph b or c of the definition of “eligible employer”, the period that begins on 15 March 2000 and that ends on the last day of the last taxation year of the corporation that begins before 21 December 2001;

(d)  where the eligible employer is a corporation referred to in paragraph d of the definition of “eligible employer”, the period that begins on 15 March 2000 and that ends on 12 June 2003;

(e)  where the eligible employer is a corporation referred to in paragraph e of the definition of “eligible employer”, the period that begins on 12 May 2000 and that ends on 12 June 2003;

(f)  where the eligible employer is a corporation referred to in subparagraph iii of paragraph a of section 771.12, the period that begins on 30 March 2001;

(g)  where the eligible employer is a corporation referred to in paragraph f of the definition of “eligible employer”, the period that begins on 30 March 2001 and that ends on 12 June 2003 or the period that begins on 31 March 2004; and

(h)  where the eligible employer is a corporation referred to in any of paragraphs g to j of the definition of “eligible employer”, the period that begins on 20 March 2002 and that ends on 12 June 2003;

“new economy centre” has the meaning assigned by section 771.1;

“specialized activity 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 an eligible employer, 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;

(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 737.22.0.1.1 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 737.22.0.3, in relation to a preceding employment, may reasonably be attributed; or

(2)  a preceding period within the meaning of section 737.22.0.1.1 that is established in respect of the individual since the last time the individual became resident in Canada, other than a period described in subparagraph 1; and

(c)  where the individual entered into the individual’s employment contract with the eligible employer 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;

“specified period” of an individual in relation to an employment held by the individual with an eligible employer means

(a)  where the individual entered into the individual’s employment contract with the eligible employer after 30 March 2004, any part of the individual’s specialized activity 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 “specialized activity period” ; and

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

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

Where the 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 an eligible employer, the specialized activity period of the individual in relation to that employment begins only on the first day of the first taxation year following the particular day for which such a certificate has been issued in respect of the individual.

For the purposes of the definition of “eligible income” in the first paragraph, any benefit that an individual is deemed to receive, in a particular taxation year, in connection with an employment held by the individual with an eligible employer, because of the application of any of sections 49 and 50 to 52.1, is considered to be included in the amounts that are paid to the individual as wages in the year by that employer.

1997, c. 85, s. 116; 1998, c. 17, s. 64; 1999, c. 86, s. 99; 2000, c. 39, s. 55; 2001, c. 51, s. 43; 2001, c. 69, s. 12; 2002, c. 9, s. 16; 2003, c. 9, s. 61; 2004, c. 21, s. 174; 2005, c. 23, s. 88; 2005, c. 38, s. 121.