D-9 - Act to promote industrial development by means of fiscal advantages

À jour au 1^er avril 1999

Ce document a valeur officielle.

chapter D-9

Act to promote industrial development by means of fiscal advantages

Repealed, 1997, c. 14, s. 1.

1997, c. 14, s. 1.

1. The Minister of Revenue shall have charge of the application of this act.

R. S. 1964, c. 67, s. 1.

2. (1)  For the purposes of this Act the following expressions and words mean:

(a)  “company” : in addition to its ordinary meaning, a stock company or joint-stock company, except a company engaged in a business excluded in paragraph b;

(b)  “manufacturing or processing business” : a manufacturing or processing business within the meaning of the regulations, except however any business for the operation of gas or oil wells, or for mining, logging or farming operations, any construction or fishery business and any business whose principal activity is the wrapping, packaging, washing or sorting of products or merchandise;

(c)  “investment” : the sum of the amounts of money which have been invested by a company in a manufacturing or processing business, during any of its financial years, for the construction or extension of works or manufactories or the purchase of new machinery, tools or equipment for operating works or manufactories, to the extent allowed by the regulations but solely with respect to the portion of such sum which exceeds $50 000 if such amounts were invested during the period commencing on 1 April 1968 and ending on 31 March 1971, and if such amounts were invested during the period beginning on 1 April 1971 and ending on 31 March 1977, with respect to the entire sum so invested, up to $10 000 000, provided however that the sum so invested is at least $150 000;

(d)  “zone I”, “zone II” or “zone III”, as the case may be: any part of the territory of Québec described in the schedule as zone I, zone II or zone III;

(e)  “regulations” : the regulations made by the Government under this Act.

(2)  Every company engaged in the operation of a manufacturing or processing business in Québec may, in computing its taxable income, deduct an amount equal to 30 % of the investments made by it in Québec in such business during the period commencing on 1 April 1968 and ending on 31 March 1971.

(3)  Every company which is engaged in the operation of a manufacturing or processing business in Québec and which makes an investment contemplated in paragraph a of section 2 of the Industrial Development Assistance Act (chapter A-13) as it read on 22 June 1982, may, if a certificate has been issued with respect to such investment by the Minister of Industry, Trade, Science and Technology in accordance with subsection 4, in computing its taxable income, deduct:

(a)  an amount equal to 30 % of such investment if it was made in zone I during the period commencing on 1 April 1971 and ending on 31 March 1977,

(b)  an amount equal to 50 % of such investment if it was made in zone II during the period contemplated in paragraph a, or

(c)  an amount equal to 100 % of such investment if it was made in zone III during the period contemplated in paragraph a.

(4)  A company may avail itself of the advantages provided for in subsection 3 provided that a certificate has been issued to it by the Minister of Industry, Trade, Science and Technology that the investment with respect to which it claims such advantages is subject to the application of paragraph a of section 2 of the Industrial Development Assistance Act as it read on 22 June 1982; such certificate must mention whether the company is making the investments which entitle it to avail itself of the advantages provided in subsection 3 in zone I, zone II or in zone III.

(5)  Any amount which may be deducted under this section during a financial year but is not deducted may be deducted during subsequent financial years.

(6)  The amount which a company may deduct under this section for one of its financial years shall not exceed one-half of its taxable income established for the financial year concerned before such deduction is made.

(7)  The tax reduction obtained under this section shall not exceed 12 % of the amount which may be so deducted in computing the taxable income.

(8)  No subsidy or premium paid to a company under the Regional Development Incentives Act (Revised Statutes of Canada, 1970, chapter R-3) or the Regional Industrial Development Assistance Act (1968, chapter 27) or under an equivalent plan within the meaning of such Act shall be included in computing the company’s revenue, and it shall not reduce the cost of any property for the purpose of the capital cost allowance.

R. S. 1964, c. 67, s. 2 (part); 1966-67, c. 28, s. 1; 1968, c. 28, s. 1; 1971, c. 22, s. 1; 1971, c. 23, s. 1; 1972, c. 24, s. 2, s. 3; 1974, c. 20, s. 1; 1975, c. 23, s. 1; 1979, c. 77, s. 27; 1984, c. 36, s. 44; 1988, c. 41, s. 89; 1994, c. 16, s. 51; 1994, c. 22, s. 1; 1997, c. 3, s. 1.

3. The Government may make regulations:

(a)  to determine the conditions upon which an investment may be allowed for the purposes of section 2 and the cases in which such an investment may be considered as having been made during the period commencing on 1 April 1968 and ending on 31 March 1971 or during the period commencing on 1 April 1971 and ending on 31 March 1977;

(b)  to define, for the purposes of section 2, the expression “manufacturing or processing business”.

The regulations made under this act shall come into force on the date of their publication in the Gazette officielle du Québec or on such later date as is fixed therein.

R. S. 1964, c. 67, s. 38; 1966-67, c. 28, s. 9 (part); 1968, c. 28, s. 2; 1971, c. 23, s. 2; 1972, c. 24, s. 2; 1974, c. 20, s. 2; 1975, c. 23, s. 2.

3.1. The Minister of Revenue may assign another meaning to the references to municipalities made in the schedule or assign other limits to a zone.

Any meaning assigned pursuant to the first paragraph shall prevail over the meaning in the schedule and any limits assigned pursuant to the first paragraph shall prevail over any such meaning.

Any meaning or limits assigned pursuant to the first paragraph may have retroactive effect to the date fixed by the Minister.

1996, c. 2, s. 643.

4. (This section ceased to have effect on 17 April 1987).

1982, c. 21, s. 1; U. K., 1982, c. 11, Sch. B, Part I, s. 33.

SCHEDULE

(Section 2)

Zone I: This zone comprises all the territory of Québec not included in zone II or III.

Zone II: This zone comprises the territories of the following municipalities: the county municipalities of Arthabaska, Beauce, Bellechasse, Champlain, Charlevoix-Est, Charlevoix-Ouest, Compton, Dorchester, Drummond, Frontenac, Gatineau, Hull, Lévis, L’Islet, Lotbinière, Mégantic, Montmagny, Montmorency No. 1, Montmorency No. 2, Nicolet, Pontiac, Portneuf, Québec, Richmond, Sherbrooke, Stanstead, Saint-Maurice and Wolfe; the county municipality of Labelle, less the municipalities of the village of Labelle, the township of Joly, the townships of La Minerve, La Conception, Lac-Tremblant-Nord and La Macaza, and that part of the township of Labelle which is not organized as a local municipality; the county municipality of Maskinongé, less the municipality of the parish of Saint-Didace and the townships of Angoulême, Chapleau, Houde, Kaine, Masson, Aubry, Laviolette, Créquy, Légaré, Villiers, Troyes and Boullé; the county municipality of Papineau, less the municipalities of Lac-des-Plages and of the township of Amherst, and that part of the municipality of the united townships of Suffolk and Addington situated in the township of Addington; the county municipality of Yamaska, less the municipalities of the villages of Saint-Michel and Yamaska-Est, and the parishes of Saint-David, Saint-Gérard-Majella and Saint-Michel-d’Yamaska; that part of the county municipality of Abitibi bounded on the west by the west line of the townships of Gosselin, Douville, Buies, Provancher, Poisson, Hanotaux, Juneau, Coursol and Lacroix; that part of the county municipality of Berthier situated to the north-west of the township of Dupont; that part of the county municipality of Joliette situated to the northwest of the townships of French and Lenoir; that part of the county municipality of Montcalm comprising the townships of Brunet and Franchère and the entire part situated to the northwest of such townships; that part of the county municipality of Kamouraska comprising the town of La Pocatière, the municipalities of the village of Saint-Pacôme, of the parishes of Sainte-Anne-de-la-Pocatière, Saint-Onésime-d’Ixworth and Saint-Pacôme, the municipalities of Rivière-Ouelle and Saint-Gabriel-Lallemant and the township of Chapais and that part of the township of Ixworth that is not organized as a local municipality.

It also comprises, in addition to the town of La Pocatière, all the cities and towns situated in such territory.

Zone III: This zone comprises the territories of the following municipalities: the county municipalities of Bonaventure, Chicoutimi, Gaspé-Est, Gaspé-Ouest, Îles-de-la-Madeleine, Lac-Saint-Jean-Est, Lac-Saint-Jean-Ouest, Matane, Matapédia, Rimouski, Rivière-du-Loup, Témiscamingue and Témiscouata; the county municipality of Saguenay and all the municipalities situated to the east of the river Betsiamites; the county municipality of Abitibi, less the part comprised in zone II; the county municipality of Kamouraska, less the part comprised in zone II.

It also comprises all the cities and towns situated in such territory as well as the island of Anticosti.

In the description of Zones II and III, any reference to a county municipality means the territory in which the county corporation concerned had jurisdiction immediately before it ceased to exist and any reference to another municipality, where it is related to a reference to a county municipality, means the territory in which that other municipality had jurisdiction immediately before the county corporation having jurisdiction in the same territory ceased to exist. However, in the case of a municipality whose name includes the word “town” or “city”, any reference thereto means the territory in which the municipality had jurisdiction immediately before the county corporation which would have had jurisdiction in the same territory had that territory not been excluded by law from its jurisdiction ceased to exist. Any reference to another municipality, where it is not related to a reference to a county municipality, means the territory in which that other municipality has jurisdiction or, as the case may be, had jurisdiction immediately before it ceased to exist.

1971, c. 23, s. 3; 1996, c. 2, s. 644.

As regards the limits of the county municipality of Hull, see: R. S. 1964, c. 5, s. 13, par. 25.

REPEAL SCHEDULE

In accordance with section 17 of the Act respecting the consolidation of the statutes (chapter R-3), chapter 67 of the Revised Statutes, 1964, in force on 31 December 1977, is repealed effective from the coming into force of chapter D-9 of the Revised Statutes.