R-5 - Act respecting the Régie de l’assurance maladie du Québec

Section 34.1.0.5 Disposition versions

2024-05-07

34.1.0.5. The aggregate of all amounts each of which is a contribution that, under subparagraph d.2 of the sixth paragraph of section 34, is not payable by an employer for a particular taxation year or fiscal period may not exceed the amount determined in accordance with the second paragraph in respect of the employer for the particular taxation year or fiscal period, as the case may be, in relation to one or more large investment projects of the employer that are referred to in that subparagraph d.2.

For the purposes of this section, the amount to which the first paragraph refers in respect of an employer for a particular taxation year or fiscal period, in relation to one or more large investment projects of the employer, is equal to the aggregate of all amounts each of which is an amount that, for the particular taxation year or fiscal period, as the case may be, in relation to any of those large investment projects, is determined by the formula

(A × B/C) – D.

In the formula in the second paragraph,

(a)  A is the employer’s total tax assistance for the particular taxation year or fiscal period, in respect of the large investment project, that is determined under section 34.1.0.6;

(b)  B is the number of days in the period that begins on the date of the beginning of the tax-free period, in respect of the large investment project, and that ends on the last day of the particular taxation year or fiscal period or, if it is earlier, on the last day of the tax-free period, in respect of the project;

(c)  C is the number of days in the period that begins on the date of the beginning of the tax-free period in respect of the large investment project and that ends on the last day of the tax-free period in respect of the project; and

(d)  D is

i.  where the employer is a corporation, the aggregate of

(1)  the aggregate of all amounts each of which is, for the particular taxation year or a preceding taxation year, in relation to the large investment project, equal to the amount determined by the formula

E × F × G,

(2)  the aggregate of all amounts each of which is, for a preceding taxation year, in relation to the large investment project, equal to the amount determined by the formula

H × I, and

(3)  where, at any time in the particular taxation year, the employer transfers all or substantially all of the employer’s activities arising from the carrying out of the large investment project to another corporation or a partnership, the amount that was transferred to the other corporation or the partnership pursuant to the agreement referred to in section 737.18.17.21 of the Taxation Act (chapter I-3) in respect of the transfer, or

ii.  where the employer is a partnership, the aggregate of

(1)  the aggregate of all amounts each of which is, for a preceding fiscal period, in relation to the large investment project, equal to the amount determined by the formula

H × I,

(2)  the aggregate of all amounts each of which is the amount agreed on, in respect of the particular fiscal period or a preceding fiscal period, in relation to the large investment project, pursuant to an agreement referred to in section 737.18.17.20 of the Taxation Act, and

(3)  where, at any time in the particular fiscal period, the employer transfers the employer’s activities arising from the carrying out of the large investment project to a corporation or another partnership, the amount that was transferred to the corporation or the other partnership pursuant to the agreement referred to in section 737.18.17.21 of the Taxation Act in respect of the transfer.

In the formulas in the third paragraph,

(a)  E is 1, unless the employer has an establishment situated outside Québec for the taxation year, in which case it is the proportion that the employer’s business carried on in Québec is of the aggregate of the employer’s business carried on in Canada or in Québec and elsewhere, as determined under subsection 2 of section 771 of the Taxation Act for the taxation year;

(b)  F is the aggregate of

i.  3.2% of the amount by which the amount that would be determined in respect of the employer for the taxation year under section 771.2.1.2 of the Taxation Act if, for the purposes of paragraph b of that section, the employer’s taxable income for the taxation year, for the purposes of Part I of that Act, were computed without reference to section 737.18.17.17 of that Act, exceeds the amount that is determined in respect of the employer for the taxation year under that section 771.2.1.2, and

ii.  11.5% of the amount by which the amount deducted by the employer in computing taxable income for the taxation year under section 737.18.17.17 of the Taxation Act exceeds the excess amount determined under subparagraph i;

(c)  G is the proportion that the employer’s maximum annual tax exemption amount for the taxation year, in relation to the large investment project, is of the aggregate of all amounts each of which is the employer’s maximum annual tax exemption amount for the taxation year, in relation to a large investment project of the employer or of a partnership of which the employer is a member, that is referred to in the first paragraph of section 737.18.17.17 of the Taxation Act for the taxation year;

(d)  H is the aggregate of the amounts that are not payable by the employer for the preceding taxation year or fiscal period under subparagraph d.2 of the sixth paragraph of section 34; and

(e)  I is the proportion that the employer’s maximum annual contribution exemption amount for the preceding taxation year or fiscal period, in relation to the large investment project, is of the aggregate of all amounts each of which is the employer’s maximum annual contribution exemption amount for the preceding taxation year or fiscal period, in relation to a large investment project of the employer that is referred to in subparagraph d.2 of the sixth paragraph of section 34 for the taxation year or fiscal period.

Where, at any time of a particular day, an employer (in this paragraph referred to as the “acquirer”) acquired all or substantially all of the activities arising from the carrying out of a large investment project from another employer (in this paragraph referred to as the “vendor”), and where the Minister of Finance previously authorized the transfer of those activities to the acquirer, according to a qualification certificate issued by that Minister to the acquirer in respect of the project, the following rules must, where applicable, be taken into consideration for the purposes of subparagraphs b and c of the third paragraph:

(a)  the vendor’s taxation year or fiscal period that includes that time is deemed to end on the particular day;

(b)  the vendor’s last day of the tax-free period, in relation to the large investment project, is deemed to correspond to the particular day;

(c)  the acquirer’s taxation year or fiscal period that includes that time is deemed to begin on the particular day; and

(d)  the date of the beginning of the acquirer’s tax-free period, in relation to the large investment project, is deemed to correspond to the date of the particular day.

2024, c. 11, s. 149.