57.1. An authorized foreign bank, within the meaning of section 1 of the Taxation Act (chapter I-3), that, in a taxation year, operates an international financial centre, may deduct from its paid-up capital for the year, for the purposes of Part IV of that Act, computed before the application of this section and section 1141.10 of that Act, 75% of the product obtained by multiplying, by the proportion that the aggregate of its business carried on in Canada or in Québec and elsewhere in the year is of its business carried on in Québec in the year, the amount determined by the formula
A × [(B / C) + (D / E)] / 2.
In the formula in the first paragraph,
(1) A is the paid-up capital of the authorized foreign bank for the year, for the purposes of Part IV of the Taxation Act, computed before the application of sections 1141.3 to 1141.10 of that Act;
(2) B is the portion of the gross revenue of the authorized foreign bank for the year from the operations of an international financial centre operated by the authorized foreign bank;
(3) C is the gross revenue of the authorized foreign bank for the year;
(4) D is the aggregate of all amounts each of which is wages paid by the authorized foreign bank in the year that, in a proportion of 100% or 75%, as the case may be, and in accordance with section 64, do not constitute wages subject to the contribution provided for in section 34 of the Act respecting the Régie de l’assurance maladie du Québec (chapter R-5);
(5) E is the aggregate of the wages paid by the authorized foreign bank in the year; and
(6) if C or E is an amount equal to zero, the fraction of which it is the denominator is deemed to be equal to zero.
For the purposes of the first paragraph, the computation of the business carried on in Canada, in Québec and in Québec and elsewhere by a corporation is computed in the manner prescribed in the regulations made under subsection 2 of section 771 of the Taxation Act, with the necessary modifications.
2004, c. 8, s. 2; 2005, c. 38, s. 18.