C-8.3 - Act respecting international financial centres

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67. For the application of section 66 to an individual who is resident in Canada immediately before entering into a contract of employment with a corporation or partnership operating an international financial centre and immediately before taking up employment, as an employee, with the corporation or partnership, and who, if the individual worked to establish the international financial centre in Canada immediately before taking up employment, as an employee, with the corporation or partnership, is resident in Canada immediately before so beginning to work, the rule set out in the second paragraph applies if any of the following conditions is satisfied:
(1)  the individual may deduct an amount in computing the individual’s taxable income for the taxation year in which the individual so took up employment or began working in Canada to establish the international financial centre, or for a preceding taxation year, in relation to a preceding employment, under any of the sections mentioned in the third paragraph of section 737.19.2 of the Taxation Act (chapter I-3); or
(2)  the individual would meet the condition set out in subparagraph 1 if an employer had not failed to apply, in respect of the individual, for a qualification certificate or a certificate referred to in any of the sections mentioned in subparagraph ii of paragraph a of section 737.20 of the Taxation Act.
The rule to which the first paragraph refers is any of the following rules:
(1)  the individual is deemed to become resident in Canada to establish the international financial centre at the time when the individual begins working to establish the centre, where
(a)  the individual was working to establish the centre immediately before taking up employment, as an employee, with the corporation or partnership,
(b)  the period between the date on which the individual took up employment and the time when the individual began working to establish the international financial centre does not exceed 12 months, and
(c)  the individual satisfies the conditions set out in subparagraphs 3 and 4 of the first paragraph of section 66 on the very day on which the individual takes up employment; and
(2)  in any other case, the individual is deemed not to be resident in Canada immediately before taking up employment, as an employee, with the corporation or partnership.
Where the rule set out in subparagraph 1 of the second paragraph applies, it also has effect for the purposes of subparagraph b of paragraph 1 of section 69.
1999, c. 86, s. 67; 2004, c. 21, s. 21.
67. For the purposes of section 66, where an individual is resident in Canada immediately before entering into a new contract of employment, subsequent to a contract of employment entered into with the particular corporation or partnership and referred to in that section, with an employer that is the particular corporation or partnership or another corporation or partnership operating an international financial centre and, immediately before taking up employment as an employee of such an employer pursuant to the new contract of employment,
(1)  the new contract of employment is deemed not to be a contract of employment separate from the contract of employment entered into with the particular corporation or partnership and referred to in section 66 or from any contract of employment subsequent to the latter contract but prior to the new contract of employment and entered into with a corporation or partnership operating an international financial centre ;
(2)  where the employer is the other corporation or partnership, the other corporation or partnership is deemed not to be a corporation or partnership separate from the particular corporation or partnership or from another corporation or partnership operating an international financial centre and having employed the individual under a contract of employment subsequent to the contract entered into with the particular corporation or partnership and referred to in that section 66 but prior to the new contract of employment ; and
(3)  for the period, if any, during which the individual is in the employ of both the particular corporation or partnership and the other corporation or partnership,
(a)  the rules set out in paragraphs 1 and 2 apply only for the part of that period in which all the activities of the international financial centres of those corporations or partnerships are conducted in one place within the territory of Ville de Montréal, and
(b)  the condition set out in subparagraph 4 of the first paragraph of section 66 must be satisfied in respect of each of those corporations or partnerships in relation to its international financial centre.
1999, c. 86, s. 67.