P-5.1 - Act respecting the sectoral parameters of certain fiscal measures

Schedule Disposition versions

2012-03-05

SCHEDULE G

MINISTER OF TRANSPORT

CHAPTER I

MEASURES COVERED BY THIS SCHEDULE

1.1. The Minister of Transport administers the sectoral parameters of the deduction granted to seamen engaged in the international transportation of freight provided for in sections 737.27 to 737.28.1 of the Taxation Act (chapter I-3).

CHAPTER II

SECTORAL PARAMETERS OF DEDUCTION GRANTED TO SEAMEN ENGAGED IN INTERNATIONAL TRANSPORTATION OF FREIGHT

DIVISION I

INTERPRETATION AND GENERAL

2.1. In this chapter, unless the context indicates otherwise,

“eligible shipowner” means a person or partnership who declares to the Minister that the person or partnership is an eligible shipowner within the meaning of section 737.27 of the Taxation Act;

“tax holiday for seamen engaged in the international transportation of freight” means the fiscal measure provided for in Title VII.6 of Book IV of Part I of the Taxation Act, under which an individual may deduct an amount in computing his or her taxable income for a taxation year.

2.2. In order for an individual who works for an eligible shipowner to benefit from the tax holiday for seamen engaged in the international transportation of freight for a taxation year, the eligible shipowner must obtain the following certificates from the Minister:

(1) a certificate in respect of the individual (in this chapter referred to as a “seaman certificate”); and

(2) a certificate in respect of the vessel on which the individual performed the duties relating to his or her work (in this chapter referred to as a “vessel certificate”).

The certificates referred to in the first paragraph must be obtained for each taxation year for which the individual may claim the tax holiday for seamen engaged in the international transportation of freight.

The application for the seaman certificate must be filed before 1 March of the calendar year that follows the individual’s taxation year concerned.

The application for the vessel certificate must be filed before 1 February of the calendar year that follows the individual’s taxation year to which the application for the seaman certificate relates. A detailed statement of the assignment of the vessel and a list of the individuals making up its crew for any period covered by the certificate must be filed with the application.

DIVISION II

SEAMAN CERTIFICATE

2.3. A seaman certificate issued to an eligible shipowner certifies that the individual referred to in the certificate is recognized as an eligible seaman in respect of that shipowner for the taxation year for which the application for the certificate was made. The certificate is deemed to specify the date of the beginning of that taxation year as the date of its coming into force.

The certificate states the name of the eligible shipowner and that of the vessel on which the individual performed his or her duties and for which a vessel certificate was issued to that shipowner.

The certificate also specifies any period described in paragraph 2 of section 2.4 for which the conditions of that section are met.

2.4. An individual may be recognized as an eligible seaman in respect of an eligible shipowner for a taxation year, if

(1) the individual worked for the shipowner during the year; and

(2) for a period of at least 10 consecutive days beginning or ending in the year, the individual performed all or substantially all of his or her duties on a vessel engaged in international freight transportation for which a vessel certificate was issued to the shipowner.

2.5. An eligible shipowner to which a seaman certificate is issued for a taxation year must promptly send a copy of the certificate to the individual concerned so that it may be attached to his or her fiscal return for the year.

DIVISION III

VESSEL CERTIFICATE

2.6. The vessel certificate issued to an eligible shipowner certifies that the vessel referred to in the certificate is recognized as an eligible vessel for the individual’s taxation year to which the application for the seaman certificate relates. It is deemed to specify the date of the beginning of that taxation year as the date of its coming into force.

2.7. A vessel may be recognized as an eligible vessel for a taxation year if

(1) it is a Canadian-flagged vessel;

(2) its port of registry is located in Québec; and

(3) it is engaged in freight transportation outside Canadian waters for periods of at least 10 consecutive days beginning or ending in the year.

2012, c. 1, Schedule G.