T-0.1 - Act respecting the Québec sales tax

Section 301.11 Disposition versions

2023-03-15

301.11. Subject to section 301.12, where a registrant (in this section referred to as the “parent”) that is a corporation, partnership or trust resident in Canada acquires or brings into Québec a particular property or service at a particular time and where at the particular time a particular corporation is an operating corporation of the parent, the parent is deemed, for the purpose of determining the input tax refund of the parent, to have acquired or brought into Québec the particular property or service for use in the course of commercial activities of the parent to the extent that

(1)  the parent acquired or brought into Québec the particular property or service for the purpose of

(a)  selling or otherwise disposing of, purchasing or otherwise obtaining, or holding units or indebtedness of the particular corporation by the parent, or

(b)  redeeming, issuing or converting or otherwise modifying units or indebtedness of the particular corporation by the particular corporation;

(2)  the parent acquired or brought into Québec the particular property or service in order to issue or sell units or indebtedness of the parent, the parent transfers to the particular corporation the proceeds from the issuance or sale by lending money to the particular corporation or by purchasing or otherwise obtaining from the particular corporation units or indebtedness of the particular corporation, and the proceeds that are transferred to the particular corporation are for use in the course of its commercial activities; or

(3)  if at the particular time all or substantially all of the property of the parent is property that was last manufactured, produced, acquired or imported into Canada by the parent for consumption, use or supply exclusively in the course of its commercial activities, property that is units or indebtedness of operating corporations of the parent or a combination of such property, the parent acquired or brought into Québec the particular property or service for the purpose of carrying on, engaging in or conducting its activities other than

(a)  an activity that is primarily in respect of units or indebtedness of a person that is neither the parent nor an operating corporation of the parent, or

(b)  an activity that is carried on, engaged in or conducted in the course of making an exempt supply by the parent unless the activity is a financial service that is

i.  the lending or borrowing of units or indebtedness of an operating corporation of the parent,

ii.  the issue, granting, allotment, acceptance, endorsement, renewal, processing, variation, transfer of ownership or repayment of units or indebtedness of the parent or an operating corporation of the parent,

iii.  the provision, variation, release or receipt of a guarantee, acceptance or indemnity in respect of units or indebtedness of the parent or an operating corporation of the parent,

iv.  the payment or receipt of money as dividends (other than patronage dividends), interest, principal, benefits, or similar payment or receipt of money in respect of units or indebtedness of the parent or an operating corporation of the parent, or

v.  the underwriting of units or indebtedness of an operating corporation of the parent.

2012, c. 28, s. 100; 2023, c. 2, s. 86.

2013-01-01

301.11. Subject to section 301.12 and for the purpose of determining an input tax refund, a corporation (in this section referred to as the “parent”) that acquires or brings into Québec a property or a service at a particular time is deemed to have acquired the property or service or brought it into Québec for use in the course of commercial activities of the parent to the extent that the parent can reasonably be regarded as having so acquired the property or service, or as having so brought it into Québec, for consumption or use in relation to shares of the capital stock, or indebtedness, of another corporation that is at that time related to the parent, if

(1)  the parent is a registrant resident in Canada; and

(2)  at the time that tax in respect of the acquisition or bringing into Québec of the property or service becomes payable, or is paid without having become payable, by the parent, all or substantially all of the property of the other corporation is property that was last acquired or imported into Canada by the other corporation for consumption, use or supply by the other corporation exclusively in the course of its commercial activities.

2012, c. 28, s. 100.