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

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34.1.0.3. The aggregate of all amounts each of which is a contribution that, under subparagraph d.1 of the seventh paragraph of section 34, is not payable by an employer for a taxation year or a fiscal period may not exceed the aggregate of all amounts each of which is a contribution exemption amount of the employer for the taxation year or for the fiscal period, as the case may be, in respect of a large investment project of the employer that is referred to in that subparagraph d.1.
For the purposes of this section, an employer’s contribution exemption amount for a taxation year or a fiscal period, as the case may be, in respect of a large investment project of the employer is equal to the lesser of
(a)  the balance of the employer’s tax assistance limit, for the taxation year or fiscal period, in respect of the large investment project; and
(b)  the aggregate of all amounts each of which is, for the taxation year or fiscal period, a contribution that would not be payable by the employer in respect of wages paid or deemed to be paid to an employee, in relation to part of the employee’s working time devoted to eligible activities of the employer, in relation to the project, if subparagraph d.1 of the seventh paragraph of section 34 were applied without reference to this section.
The balance of an employer’s tax assistance limit, for a particular taxation year or fiscal period, in respect of a large investment project of the employer, is equal to
(a)  where the employer is a corporation, the amount by which the employer’s tax assistance limit in relation to the large investment project exceeds the aggregate of
i.  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
A × B × C;
ii.  the aggregate of all amounts each of which is the employer’s contribution exemption amount, for a preceding taxation year, in respect of the large investment project, and
iii.  where, at any time in the particular taxation year, the employer transfers its recognized business in relation to 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 737.18.17.12 of the Taxation Act in respect of the transfer; or
iv.  in the case of a deemed large investment project within the meaning of the seventh paragraph of section 33, the aggregate of the following amounts, if any:
(1)  the amount determined by the following formula for the taxation year that includes the last day of the tax-free period in respect of the first large investment project and ends after that day, unless the balance of the employer’s tax assistance limit for that year, in respect of the deemed large investment project, determined without reference to this subparagraph, is less than or equal to the employer’s tax assistance limit in relation to the second large investment project:

D − [(D × F) + (E × G)], and

(2)  the amount determined by the following formula for the taxation year that follows the taxation year that includes the last day of the tax-free period in respect of the first large investment project, unless the balance of the employer’s tax assistance limit for that year, in respect of the deemed large investment project, determined without reference to this subparagraph, is less than or equal to the employer’s tax assistance limit in relation to the second large investment project:

D − E; or

(b)  where the employer is a partnership, the amount by which the employer’s tax assistance limit in relation to the large investment project exceeds the aggregate of 
i.  the aggregate of all amounts each of which is the employer’s contribution exemption amount, for a preceding fiscal period, in respect of the large investment project,
ii.  the aggregate of all amounts each of which is an 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 737.18.17.10 of the Taxation Act, and
iii.  where, at any time in the particular fiscal period, the employer transfers its recognized business in relation to 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 737.18.17.12 of the Taxation Act in respect of the transfer.
iv.  in the case of a deemed large investment project within the meaning of the sixth paragraph of section 33, the aggregate of the following amounts, if any:
(1)  the amount determined by the following formula for the fiscal period that includes the last day of the tax-free period in respect of the first large investment project and ends after that day, unless the balance of the employer’s tax assistance limit for that fiscal period, in respect of the deemed large investment project, determined without reference to this subparagraph, is less than or equal to the employer’s tax assistance limit in relation to the second large investment project:

D − [(D × F) + (E × G)], and

(2)  the amount determined by the following formula for the fiscal period that follows the fiscal period that includes the last day of the tax-free period in respect of the first large investment project, unless the balance of the employer’s tax assistance limit for that fiscal period, in respect of the deemed large investment project, determined without reference to this subparagraph, is less than or equal to the employer’s tax assistance limit in relation to the second large investment project:

D – E.

 In the formulas in the third paragraph,
(a)  A 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 year;
(b)  B is, subject to the sixth and seventh paragraphs, the aggregate of
i.  8% of the amount by which the amount that would be determined in respect of the employer for the year under section 771.2.1.2 of the Taxation Act if no reference were made to section 771.2.5.1 of that Act and if, for the purposes of paragraph b of section 771.2.1.2 of that Act, the employer’s taxable income for the year, for the purposes of Part I of that Act, were computed without reference to section 737.18.17.5 of that Act, exceeds the amount determined in respect of the employer for the year under section 771.2.1.2 of that Act, and
ii.  the product obtained by multiplying the basic rate determined for the year in respect of the employer under section 771.0.2.3.1 of the Taxation Act by the amount by which the amount that is deducted in computing the employer’s taxable income for the year under section 737.18.17.5 of that Act exceeds the excess amount determined under subparagraph i; and
(c)  C is the proportion that the employer’s tax exemption amount for the year in respect of the large investment project, determined in accordance with the second paragraph of section 737.18.17.6 of the Taxation Act, is of the aggregate of all amounts each of which is such a tax exemption amount of the employer for the year in respect of 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 737.18.17.5 of that Act for the year.
(d)  D is the balance of the employer’s tax assistance limit for the taxation year or fiscal period referred to in subparagraph 1 or 2 of subparagraph iv of subparagraph a or b, as the case may be, of the third paragraph, in respect of the deemed large investment project, determined without reference to that subparagraph 1 or 2, as the case may be;
(e)  E is the employer’s tax assistance limit in relation to the second large investment project;
(f)  F is the proportion that the number of days in the part of the taxation year or fiscal period referred to in subparagraph 1 of subparagraph iv of subparagraph a or b, as the case may be, of the third paragraph that ends on the last day of the tax-free period in respect of the first large investment project is of the number of days in the taxation year or fiscal period; and
(g)  G is the proportion that the number of days in the taxation year or fiscal period referred to in subparagraph 1 of subparagraph iv of subparagraph a or b, as the case may be, of the third paragraph that follow the last day of the tax-free period in respect of the first large investment project is of the number of days in the taxation year or fiscal period.
For the purpose of determining the amount referred to in subparagraph i of subparagraph a of the third paragraph for any taxation year for which section 733.0.5.1 of the Taxation Act applies to the employer, subparagraph b of the fourth paragraph is to be read as if
(a)  the amount that is deducted in computing the employer’s taxable income for the year under section 737.18.17.5 of that Act were increased by the amount by which the employer’s non-capital loss for the year exceeds the amount that would be that loss if it were determined without reference to section 733.0.5.1 of that Act; and
(b)  the employer’s taxable income for the year, for the purposes of Part I of that Act, determined without reference to section 737.18.17.5 of that Act, were equal to the amount that, but for section 737.18.17.6 of that Act, would be determined in respect of the employer for the year under section 737.18.17.5 of that Act.
Where the employer is a manufacturing corporation, within the meaning assigned by the first paragraph of section 771.1 of the Taxation Act, to which paragraph d.3 of subsection 1 of section 771 of that Act applies for the taxation year, subparagraph i of subparagraph b of the fourth paragraph is to be read as if “8% of” were replaced by “the product obtained by multiplying the difference between the basic rate determined for the year in respect of the employer under section 771.0.2.3.1 of the Taxation Act and the percentage determined for the year in its respect under section 771.0.2.5 of that Act by”.
Where the employer is a primary and manufacturing sectors corporation, within the meaning assigned by the first paragraph of section 771.1 of the Taxation Act, to which paragraph d.4 of subsection 1 of section 771 of that Act applies for the taxation year, subparagraph i of subparagraph b of the fourth paragraph is to be read as if “8% of” were replaced by “the product obtained by multiplying the difference between the basic rate determined for the year in respect of the employer under section 771.0.2.3.1 of the Taxation Act and the percentage determined for the year in its respect under section 771.0.2.6 of that Act by”.
2015, c. 21, s. 594; 2017, c. 1, s. 433; 2019, c. 142019, c. 14, s. 522.
34.1.0.3. The aggregate of all amounts each of which is a contribution that, under subparagraph d.1 of the seventh paragraph of section 34, is not payable by an employer for a taxation year or a fiscal period may not exceed the aggregate of all amounts each of which is a contribution exemption amount of the employer for the taxation year or for the fiscal period, as the case may be, in respect of a large investment project of the employer that is referred to in that subparagraph d.1.
For the purposes of this section, an employer’s contribution exemption amount for a taxation year or a fiscal period, as the case may be, in respect of a large investment project of the employer is equal to the lesser of
(a)  the balance of the employer’s tax assistance limit, for the taxation year or fiscal period, in respect of the large investment project; and
(b)  the aggregate of all amounts each of which is, for the taxation year or fiscal period, a contribution that would not be payable by the employer in respect of wages paid or deemed to be paid to an employee, in relation to part of the employee’s working time devoted to eligible activities of the employer, in relation to the project, if subparagraph d.1 of the seventh paragraph of section 34 were applied without reference to this section.
The balance of an employer’s tax assistance limit, for a particular taxation year or fiscal period, in respect of a large investment project of the employer, is equal to
(a)  where the employer is a corporation, the amount by which the employer’s tax assistance limit, in relation to the large investment project, determined in accordance with section 737.18.17.8 of the Taxation Act (chapter I-3), exceeds the aggregate of
i.  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
A × B × C;
ii.  the aggregate of all amounts each of which is the employer’s contribution exemption amount, for a preceding taxation year, in respect of the large investment project, and
iii.  where, at any time in the particular taxation year, the employer transfers its recognized business in relation to 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 737.18.17.12 of the Taxation Act in respect of the transfer; or
(b)  where the employer is a partnership, the amount by which the employer’s tax assistance limit, in relation to the large investment project, determined in accordance with section 34.1.0.4, exceeds the aggregate of
i.  the aggregate of all amounts each of which is the employer’s contribution exemption amount, for a preceding fiscal period, in respect of the large investment project,
ii.  the aggregate of all amounts each of which is an 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 737.18.17.10 of the Taxation Act, and
iii.  where, at any time in the particular fiscal period, the employer transfers its recognized business in relation to 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 737.18.17.12 of the Taxation Act in respect of the transfer.
In the formula in subparagraph i of subparagraph a of the third paragraph,
(a)  A 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 year;
(b)  B is, subject to the sixth and seventh paragraphs, the aggregate of
i.  8% of the amount by which the amount that would be determined in respect of the employer for the year under section 771.2.1.2 of the Taxation Act if no reference were made to section 771.2.5.1 of that Act and if, for the purposes of paragraph b of section 771.2.1.2 of that Act, the employer’s taxable income for the year, for the purposes of Part I of that Act, were computed without reference to section 737.18.17.5 of that Act, exceeds the amount determined in respect of the employer for the year under section 771.2.1.2 of that Act, and
ii.  the product obtained by multiplying the basic rate determined for the year in respect of the employer under section 771.0.2.3.1 of the Taxation Act by the amount by which the amount that is deducted in computing the employer’s taxable income for the year under section 737.18.17.5 of that Act exceeds the excess amount determined under subparagraph i; and
(c)  C is the proportion that the employer’s tax exemption amount for the year in respect of the large investment project, determined in accordance with the second paragraph of section 737.18.17.6 of the Taxation Act, is of the aggregate of all amounts each of which is such a tax exemption amount of the employer for the year in respect of 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 737.18.17.5 of that Act for the year.
For the purpose of determining the amount referred to in subparagraph i of subparagraph a of the third paragraph for any taxation year for which section 733.0.5.1 of the Taxation Act applies to the employer, subparagraph b of the fourth paragraph is to be read as if
(a)  the amount that is deducted in computing the employer’s taxable income for the year under section 737.18.17.5 of that Act were increased by the amount by which the employer’s non-capital loss for the year exceeds the amount that would be that loss if it were determined without reference to section 733.0.5.1 of that Act; and
(b)  the employer’s taxable income for the year, for the purposes of Part I of that Act, determined without reference to section 737.18.17.5 of that Act, were equal to the amount that, but for section 737.18.17.6 of that Act, would be determined in respect of the employer for the year under section 737.18.17.5 of that Act.
Where the employer is a manufacturing corporation, within the meaning assigned by the first paragraph of section 771.1 of the Taxation Act, to which paragraph d.3 of subsection 1 of section 771 of that Act applies for the taxation year, subparagraph i of subparagraph b of the fourth paragraph is to be read as if “8% of” were replaced by “the product obtained by multiplying the difference between the basic rate determined for the year in respect of the employer under section 771.0.2.3.1 of the Taxation Act and the percentage determined for the year in its respect under section 771.0.2.5 of that Act by”.
Where the employer is a primary and manufacturing sectors corporation, within the meaning assigned by the first paragraph of section 771.1 of the Taxation Act, to which paragraph d.4 of subsection 1 of section 771 of that Act applies for the taxation year, subparagraph i of subparagraph b of the fourth paragraph is to be read as if “8% of” were replaced by “the product obtained by multiplying the difference between the basic rate determined for the year in respect of the employer under section 771.0.2.3.1 of the Taxation Act and the percentage determined for the year in its respect under section 771.0.2.6 of that Act by”.
2015, c. 21, s. 594; 2017, c. 1, s. 433.
34.1.0.3. The aggregate of all amounts each of which is a contribution that, under subparagraph d.1 of the seventh paragraph of section 34, is not payable by an employer for a taxation year or a fiscal period may not exceed the aggregate of all amounts each of which is a contribution exemption amount of the employer for the taxation year or for the fiscal period, as the case may be, in respect of a large investment project of the employer that is referred to in that subparagraph d.1.
For the purposes of this section, an employer’s contribution exemption amount for a taxation year or a fiscal period, as the case may be, in respect of a large investment project of the employer is equal to the lesser of
(a)  the balance of the employer’s tax assistance limit, for the taxation year or fiscal period, in respect of the large investment project; and
(b)  the aggregate of all amounts each of which is, for the taxation year or fiscal period, a contribution that would not be payable by the employer in respect of wages paid or deemed to be paid to an employee, in relation to part of the employee’s working time devoted to eligible activities of the employer, in relation to the project, if subparagraph d.1 of the seventh paragraph of section 34 were applied without reference to this section.
The balance of an employer’s tax assistance limit, for a particular taxation year or fiscal period, in respect of a large investment project of the employer, is equal to
(a)  where the employer is a corporation, the amount by which the employer’s tax assistance limit, in relation to the large investment project, determined in accordance with section 737.18.17.8 of the Taxation Act (chapter I-3), exceeds the aggregate of
i.  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
A × B × C;
ii.  the aggregate of all amounts each of which is the employer’s contribution exemption amount, for a preceding taxation year, in respect of the large investment project, and
iii.  where, at any time in the particular taxation year, the employer transfers its recognized business in relation to 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 737.18.17.12 of the Taxation Act in respect of the transfer; or
(b)  where the employer is a partnership, the amount by which the employer’s tax assistance limit, in relation to the large investment project, determined in accordance with section 34.1.0.4, exceeds the aggregate of
i.  the aggregate of all amounts each of which is the employer’s contribution exemption amount, for a preceding fiscal period, in respect of the large investment project,
ii.  the aggregate of all amounts each of which is an 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 737.18.17.10 of the Taxation Act, and
iii.  where, at any time in the particular fiscal period, the employer transfers its recognized business in relation to 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 737.18.17.12 of the Taxation Act in respect of the transfer.
In the formula in subparagraph i of subparagraph a of the third paragraph,
(a)  A 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 year;
(b)  B is, subject to the sixth paragraph, the aggregate of
i.  8% of the amount by which the amount that would be determined in respect of the employer for the year under section 771.2.1.2 of the Taxation Act if no reference were made to section 771.2.5.1 of that Act and if, for the purposes of paragraph b of section 771.2.1.2 of that Act, the employer’s taxable income for the year, for the purposes of Part I of that Act, were computed without reference to section 737.18.17.5 of that Act, exceeds the amount determined in respect of the employer for the year under section 771.2.1.2 of that Act, and
ii.  11.9% of the amount by which the amount that is deducted in computing the employer’s taxable income for the year under section 737.18.17.5 of the Taxation Act exceeds the excess amount determined under subparagraph i; and
(c)  C is the proportion that the employer’s tax exemption amount for the year in respect of the large investment project, determined in accordance with the second paragraph of section 737.18.17.6 of the Taxation Act, is of the aggregate of all amounts each of which is such a tax exemption amount of the employer for the year in respect of 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 737.18.17.5 of that Act for the year.
For the purpose of determining the amount referred to in subparagraph i of subparagraph a of the third paragraph for any taxation year for which section 733.0.5.1 of the Taxation Act applies to the employer, subparagraph b of the fourth paragraph is to be read as if
(a)  the amount that is deducted in computing the employer’s taxable income for the year under section 737.18.17.5 of that Act were increased by the amount by which the employer’s non-capital loss for the year exceeds the amount that would be that loss if it were determined without reference to section 733.0.5.1 of that Act; and
(b)  the employer’s taxable income for the year, for the purposes of Part I of that Act, determined without reference to section 737.18.17.5 of that Act, were equal to the amount that, but for section 737.18.17.6 of that Act, would be determined in respect of the employer for the year under section 737.18.17.5 of that Act.
In the case where the employer is a manufacturing corporation, within the meaning assigned by the first paragraph of section 771.1 of the Taxation Act, to which paragraph d.3 of subsection 1 of section 771 of that Act applies for the taxation year, the reference to “8%” in subparagraph i of subparagraph b of the fourth paragraph is to be read
(a)  as a reference to “4%”, where subparagraph ii of subparagraph a of the first paragraph of section 771.0.2.5 of the Taxation Act applies to the employer;
(b)  as a reference to the percentage determined by the following formula, where subparagraph i of subparagraph a of the first paragraph of section 771.0.2.5 of the Taxation Act applies to the employer:
8% - (D + E); and
(c)  as a reference to the amount by which 8% exceeds the aggregate of the following percentages, where subparagraph b of the first paragraph of section 771.0.2.5 of the Taxation Act applies to the employer:
i.  the percentage determined by the formula
D × (F - 25%)/25%; and
ii.  the percentage determined by the formula
E × (F - 25%)/25%.
In the formulas in the sixth paragraph,
(a)  D is the proportion of 2% that the number of days in the taxation year that follow 4 June 2014 but precede 1 April 2015 is of the number of days in the taxation year;
(b)  E is the proportion of 4% that the number of days in the taxation year that follow 31 March 2015 is of the number of days in the taxation year; and
(c)  F is the proportion of manufacturing or processing activities, within the meaning assigned by the first paragraph of section 771.1 of the Taxation Act, of the employer for the taxation year.
2015, c. 21, s. 594.