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I-3 - Taxation Act

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2023-04-01 Show full text at this date

1029.6.0.0.1. In this chapter,

“government assistance” means assistance from a government, municipality or other public authority, whether as a grant, subsidy, forgivable loan, deduction from tax, investment allowance or as any other form of assistance;

“non-government assistance” means an amount that would be included in computing a taxpayer’s income because of paragraph w of section 87, if that paragraph were read without reference to its subparagraphs i to iii and v;

“qualified business”, in relation to any business carried on by a taxpayer, means any business carried on by the taxpayer other than a specified investment business or a personal services business.

For the purposes of Divisions II.4 to II.6.0.8, II.6.0.9.1 to II.6.0.11, II.6.2, II.6.4.2.1, II.6.5, II.6.5.7 to II.6.5.9, II.6.6.6.1 to II.6.15 and II.23 to II.27, the following rules apply:

(a) in the case of Division II.4, government assistance or non-government assistance does not include

i. an amount deemed to have been paid to the Minister for a taxation year under Divisions II to II.4, or

ii. an amount deducted or deductible under subsection 5 or 6 of section 127 of the Income Tax Act (R.S.C. 1985, c. 1, (5th Suppl.)), other than the portion of the amount that may reasonably be attributed to an amount that is a qualified expenditure, within the meaning of subsection 9 of section 127 of that Act, and that, for the purposes of that definition, is an expenditure made before 1 May 1987;

(b) in the case of each of Divisions II.4.2, II.5.1.1 to II.5.1.3, II.5.2, II.6.0.1.8, II.6.0.1.10, II.6.0.1.11, II.6.0.10, II.6.0.11, II.6.2, II.6.4.2.1, II.6.5, II.6.5.7 to II.6.5.9, II.6.6.6.1, II.6.6.6.2, II.6.14.3 to II.6.14.5 and II.27, government assistance or non-government assistance does not include an amount deemed to have been paid to the Minister for a taxation year under that division;

(b.1) in the case of Division II.5.1, government assistance or non-government assistance does not include

i. an amount deemed to have been paid to the Minister for a taxation year under that division, or

ii. an amount deducted or deductible under subsection 5 or 6 of section 127 of the Income Tax Act that may reasonably be attributed to an amount that is an apprenticeship expenditure, within the meaning of subsection 9 of section 127 of that Act;

i. an amount that a corporation is deemed to have paid to the Minister for a taxation year under that division,

i.1. an amount that a corporation is deemed to have paid for a taxation year under subsection 3 of section 125.4 or 125.5 of the Income Tax Act,

iii. the amount of financial assistance granted by the National Film Board of Canada,

iv. the amount of assistance granted by Telefilm Canada in accordance with the Telefilm Canada Act (R.S.C. 1985, c. C-16), other than any subsidy granted by that body under a dubbing and subtitling assistance fund,

v. the amount of financial assistance granted by the Canadian Television Fund under the Licence Fee Program or the Equity Investment Program,

v.1. the amount of financial assistance granted by the Canada Media Fund,

vi. (subparagraph repealed),

vii. (subparagraph repealed),

viii. the amount of financial assistance granted by the Fonds de développement économique de la région de la Capitale-Nationale,

viii.1. the amount of financial assistance paid by the Société du 400e anniversaire de Québec,

viii.2. the amount of financial assistance granted by the Fonds francophone d’aide au développement cinématographique,

viii.3. the amount of financial assistance granted under the Mesure régionale d’aide au démarrage de productions cinématographiques et télévisuelles implemented by the Ministère de la Culture, des Communications et de la Condition féminine, Ville de Québec and the Bureau de la Capitale-Nationale,

viii.4. the amount of financial assistance granted by the Société des célébrations du 375e anniversaire de Montréal,

viii.5. the amount of financial assistance granted under the programme de Soutien à la production cinématographique et télévisuelle de la Ville de Québec,

viii.6. the amount of financial assistance granted by Eurimages,

viii.7. the amount of financial assistance granted under Ville de Québec’s Soutien à la production de courts métrages et de webséries program,

viii.8. the amount of financial assistance granted under Ville de Québec’s Soutien à la production de longs métrages et de séries télévisées program, or

ix. the amount of any financial contribution paid by a public body that holds a broadcasting licence issued by the Canadian Radio-television and Telecommunications Commission or a similar foreign licence;

(c.1) in the case of Division II.6.0.0.1, government assistance or non-government assistance does not include

i. an amount deemed to have been paid to the Minister for a taxation year under that division, or

ii. the amount of financial assistance granted by the Société de développement des entreprises culturelles;

(d) in the case of Division II.6.0.0.2, government assistance or non-government assistance does not include

i. an amount that a corporation is deemed to have paid to the Minister for a taxation year under that division,

ii. an amount that a corporation is deemed to have paid for a taxation year under subsection 3 of section 125.4 or 125.5 of the Income Tax Act,

iii. the amount of financial assistance paid by the Société du 400e anniversaire de Québec, or

iv. the amount of financial assistance granted by the Société des célébrations du 375e anniversaire de Montréal;

(e) in the case of Division II.6.0.0.3, government assistance or non-government assistance does not include

i. an amount deemed to have been paid to the Minister for a taxation year under that division,

ii. the amount of financial assistance granted by the Conseil des arts et des lettres du Québec, the Société de développement des entreprises culturelles, the Canada Council for the Arts, the Department of Canadian Heritage, Telefilm Canada out of the Canada Music Fund, Fondation Musicaction or the Foundation Assisting Canadian Talent on Recordings,

iii. the amount of financial assistance paid by the Société du 400e anniversaire de Québec, or

iv. the amount of financial assistance granted by the Société des célébrations du 375e anniversaire de Montréal;

(e.1) in the case of Division II.6.0.0.4, government assistance or non-government assistance does not include

i. an amount deemed to have been paid to the Minister for a taxation year under that division,

ii. the amount of financial assistance granted by the Conseil des arts et des lettres du Québec, the Société de développement des entreprises culturelles, the Canada Council for the Arts, Fondation Musicaction or the Foundation Assisting Canadian Talent on Recordings,

iii. the amount of the fees paid by a government, municipality or other public authority to acquire performances of a show,

iv. the amount of financial assistance paid by the Société du 400e anniversaire de Québec, or

v. the amount of financial assistance granted by the Société des célébrations du 375e anniversaire de Montréal;

(e.2) in the case of Division II.6.0.0.4.1, government assistance or non-government assistance does not include

i. an amount deemed to have been paid to the Minister for a taxation year under that division,

ii. the amount of financial assistance granted by the Société des célébrations du 375e anniversaire de Montréal, or

iii. the amount of financial assistance granted by the Société de développement des entreprises culturelles;

(f) in the case of Division II.6.0.0.5, government assistance or non-government assistance does not include

i. an amount deemed to have been paid to the Minister for a taxation year under that division,

ii. the amount of financial assistance granted by the Canada Book Fund of the Department of Canadian Heritage,

iii. grants paid by the Canada Council for the Arts to book publishers, for international translation and for co-operative projects in writing and publishing,

iv. the amount of financial assistance granted by the Société de développement des entreprises culturelles;

v. the amount of financial assistance paid by the Société du 400e anniversaire de Québec, or

vi. the amount of financial assistance granted by the Société des célébrations du 375e anniversaire de Montréal;

(g) (subparagraph repealed);

(h) in the case of each of Divisions II.6.0.1.2, II.6.0.1.3, II.6.0.1.9, II.6.14.2 and II.6.14.2.3, government assistance or non-government assistance does not include

i. an amount deemed to have been paid to the Minister for a taxation year under that division, or

ii. any amount deducted or deductible under subsection 5 or 6 of section 127 of the Income Tax Act;

(h.1) in the case of Division II.6.0.1.12, government assistance or non-government assistance does not include

i. an amount deemed to have been paid to the Minister for a taxation year under that division, or

ii. an amount deemed to have been paid for a taxation year under subsection 2 of section 125.6 of the Income Tax Act;

(i) in the case of Division II.6.0.3, government assistance or non-government assistance does not include

i. an amount deemed to have been paid to the Minister for a taxation year under that division,

ii. any amount deducted or deductible under subsection 5 or 6 of section 127 of the Income Tax Act, or

iii. except for the purposes of the definition of “specified wages” in the first paragraph of section 1029.8.36.0.17 and sections 1029.8.36.0.24 and 1029.8.36.0.31, the amount of a grant relating to wages that is paid under the Regulation respecting the Private Investment and Job Creation Promotion Fund (O.C. 530-97, 97-04-23), as that regulation read at the time of its application;

(i.1) in the case of Division II.6.0.8, government assistance or non-government assistance does not include

i. an amount deemed to have been paid to the Minister for a taxation year under that division,

ii. the amount of assistance attributable to a specific grain price stabilization program negotiated with La Financière agricole du Québec,

iii. the amount of assistance attributable to a workforce training program,

iv. the amount of federal government assistance directly attributable to the ethanol industry segment, in particular regarding market expansion, process improvement, energy efficiency and change in raw materials, or

v. the amount of assistance attributable to the program supporting the improvement of first generation fuel ethanol production efficiency;

(i.2) in the case of Division II.6.0.9.1, government assistance or non-government assistance does not include

i. an amount deemed to have been paid to the Minister for a taxation year under that division,

ii. the amount of assistance attributable to a workforce training program, or

iii. the amount of federal government assistance directly attributable to the biodiesel fuel industry segment, in particular regarding market expansion, process improvement, energy efficiency and change in raw materials;

(i.3) in the case of Division II.6.0.9.2, government assistance or non-government assistance does not include

i. an amount deemed to have been paid to the Minister for a taxation year under that division, or

ii. the amount of assistance attributable to a workforce training program;

(i.4) in the case of Division II.6.0.9.3, government assistance or non-government assistance does not include

i. an amount deemed to have been paid to the Minister for a taxation year under that division, or

ii. subject to the fourth paragraph, the amount of federal government assistance directly attributable to the industry segment of a biofuel, in particular regarding market expansion, process improvement, energy efficiency and change in raw materials;

(j) in the case of Division II.6.15, government assistance or non-government assistance does not include

i. an amount deemed to have been paid to the Minister for a taxation year under that division, or

ii. the portion of any amount deducted or deductible under subsection 5 or 6 of section 127 of the Income Tax Act that can reasonably be attributed to an amount that is a pre-production mining expenditure within the meaning of subsection 9 of that section 127;

(k) (subparagraph repealed);

(l) in the case of Division II.23, government assistance or non-government assistance does not include

i. an amount deemed to have been paid to the Minister for a taxation year under that division, or

ii. the amount of financial assistance granted by the Ministère des Ressources naturelles et de la Faune under the Rénoclimat program;

(m) in the case of Division II.24, government assistance or non-government assistance does not include

i. an amount deemed to have been paid to the Minister for a taxation year under that division,

ii. the amount of financial assistance granted by the Ministère des Ressources naturelles et de la Faune under the Rénoclimat program, or

iii. the portion of any amount deducted or deductible under the Income Tax Act that may reasonably be attributed to an expenditure described in the definition of “home renovation expenditure” in section 1029.8.159;

(n) in the case of Division II.25, government assistance or non-government assistance does not include

i. an amount deemed to have been paid to the Minister for a taxation year under that division, or

ii. the amount of financial assistance granted by the Ministère des Ressources naturelles et de la Faune under the Rénoclimat program or the Chauffez vert program; and

(o) in the case of Division II.26, government assistance or non-government assistance does not include

i. an amount deemed to have been paid to the Minister for a taxation year under that division, or

ii. an amount deemed to have been paid on account of an individual’s tax payable for a taxation year, other than the amount described in subparagraph i, under this Part or the Income Tax Act that may reasonably be attributed to an expenditure described in the definition of “septic system repair expenditure” in section 1029.8.174.

Subject to subparagraphs c to f of the second paragraph, government assistance includes the amount of any financial contribution in respect of a property that is a Québec film production, within the meaning of the first paragraph of section 1029.8.34, a qualified production, within the meaning of the first paragraph of section 1029.8.36.0.0.1 or 1029.8.36.0.0.4, a qualified low-budget production, within the meaning of the first paragraph of section 1029.8.36.0.0.4, a qualified property, within the meaning of the first paragraph of section 1029.8.36.0.0.7, a qualified performance, within the meaning of the first paragraph of section 1029.8.36.0.0.10, a qualified production, within the meaning of the first paragraph of section 1029.8.36.0.0.12.1, an eligible work or an eligible group of works, within the meaning of the first paragraph of section 1029.8.36.0.0.13, that a corporation has received, is entitled to receive or may reasonably expect to receive from a government, municipality or other public authority, or a person or partnership that pays that contribution in circumstances where it is reasonable to conclude that the person or partnership would not have paid the contribution but for the amount that the person or partnership or another person or partnership received from a government, municipality or other public authority.

Government assistance includes, for the purposes of Divisions II.6.0.9.2 and II.6.0.9.3, the value of the compliance credits issued to a corporation, under a regulation adopted by the Government of Canada, aimed at reducing the carbon intensity of liquid fossil fuels or requiring that those fuels have a minimum low-carbon-intensity content, where

(a) within the framework of the regulation, a credit market is established;

(b) compliance credits are issued to the corporation in relation to its eligible production of pyrolysis oil or its eligible production of biofuel, as the case may be, within the meaning assigned to those expressions by Divisions II.6.0.9.2 and II.6.0.9.3; and

2001, c. 51, s. 87; 2001, c. 53, s. 260; 2002, c. 9, s. 43; 2002, c. 40, s. 99; 2003, c. 9, s. 170; 2004, c. 21, s. 253; 2005, c. 1, s. 212; 2005, c. 23, s. 141; 2005, c. 38, s. 234; 2006, c. 13, s. 87; 2006, c. 36, s. 101; 2007, c. 3, s. 72; 2007, c. 12, s. 101; 2009, c. 5, s. 426; 2009, c. 15, s. 193; 2010, c. 5, s. 136; 2010, c. 25, s. 112; 2011, c. 1, s. 51; 2011, c. 34, s. 70; 2012, c. 8, s. 175; 2013, c. 10, s. 96; 2015, c. 21, s. 363; 2015, c. 24, s. 134; 2017, c. 1, s. 267; 2017, c. 292017, c. 29, s. 17211; 2019, c. 142019, c. 14, s. 297; 2020, c. 162020, c. 16, s. 14311; 2021, c. 142021, c. 14, s. 1211112021, c. 142021, c. 14, s. 1211122021, c. 142021, c. 14, s. 1211132021, c. 142021, c. 14, s. 1211142021, c. 142021, c. 14, s. 1211152021, c. 142021, c. 14, s. 1211162021, c. 142021, c. 14, s. 121117; 2021, c. 182021, c. 18, s. 91112021, c. 182021, c. 18, s. 91122021, c. 182021, c. 18, s. 91132021, c. 182021, c. 18, s. 91142021, c. 182021, c. 18, s. 91152021, c. 182021, c. 18, s. 91162021, c. 182021, c. 18, s. 91172021, c. 182021, c. 18, s. 9118; 2022, c. 232022, c. 23, s. 9111; 2023, c. 22023, c. 2, s. 34111.

2022-06-08 Show full text at this date