I-3 - Taxation Act

Section 1029.8.16.1.1 Disposition versions

2015-10-21

1029.8.16.1.1. In this division,

“excluded contract” means an eligible research contract within the meaning of paragraph a.2 of section 1029.8.1 or a university research contract within the meaning of paragraph b of that section;

“overhead expenditure” means an expenditure made by or on behalf of a taxpayer or partnership for scientific research and experimental development undertaken under an agreement referred to in the first paragraph of section 1029.8.16.1.4 or 1029.8.16.1.5, other than

(a)  (paragraph repealed);

(b)  an expenditure of a current nature for the prosecution of scientific research and experimental development in Canada directly undertaken on behalf of the taxpayer or partnership, as the case may be;

(c)  (paragraph repealed);

(d)  that portion of an expenditure incurred for the salary or wages of an employee who is directly engaged in scientific research and experimental development in Canada that may reasonably be considered to be attributable to such work having regard to the time spent by the employee on that work and, for that purpose, if all or substantially all of the employee’s working time is spent on such scientific research and experimental development, that portion of the expenditure is deemed equal to the amount of the expenditure;

(e)  an expenditure incurred in relation to the cost of materials consumed in the prosecution of scientific research and experimental development undertaken in Canada; and

(f)  (paragraph repealed);

“public body” means

(a)  a government, a municipality or another public authority;

(b)  a body a majority of whose members come from the Québec or federal public sector, that is, are appointed by a minister, a government, a municipality, another public authority or another public body;

(c)  a body whose personnel is appointed in accordance with the Public Service Act (chapter F-3.1.1) or the Public Service Employment Act (Statutes of Canada, 2003, chapter 22);

(d)  a body more than 50% of whose financing is derived from Québec or federal public funds, that is from the Consolidated Revenue Fund or the federal treasury, a government, a municipality, another public authority or another public body;

(e)  an entity designated by the Minister as a public body; and

(f)  a combination of entities or bodies referred to in any of paragraphs a to e;

“public partner” at a particular time means

(a)  an eligible public research centre within the meaning of paragraph a.1 of section 1029.8.1;

(b)  an eligible research consortium within the meaning of paragraph a.1.1 of section 1029.8.1;

(c)  an eligible university entity within the meaning of paragraph f of section 1029.8.1;

(d)  a public body;

(e)  a trust one of the capital or income beneficiaries of which is an eligible university entity, an eligible public research centre, an eligible research consortium or a public body;

(f)  a partnership if, in the 24 months preceding the particular time, or at a later time determined by the Minister, the members of the partnership that are referred to in any of paragraphs a to e and g have, directly or indirectly in any manner whatever, interests in the partnership having a fair market value, at that time, of more than 50% of the fair market value of all the members’ interests in the partnership; and

(g)  a corporation that, in the 24 months preceding the particular time, or at a later time determined by the Minister, is controlled, directly or indirectly in any manner whatever, by an entity, a person or a combination of entities or persons referred to in any of paragraphs a to f;

“qualified expenditure” means an expenditure made in respect of scientific research and experimental development by a taxpayer or partnership that is an expenditure referred to in subsection 1 of section 222, other than such an expenditure referred to in section 1029.8.16.1.6, and includes a prescribed proxy amount;

“wages incurred” for scientific research and experimental development undertaken in Québec under an agreement referred to in the first paragraph of section 1029.8.16.1.4 or 1029.8.16.1.5, means that portion of an expenditure incurred as salaries, wages or other remuneration, including bonuses, in respect of an individual, other than a trust, who is directly engaged in that research and development, that can reasonably be considered to relate to that research and development, having regard to the time spent by the individual on that research and development.

For the purposes of this division, the share of a member of a partnership of an amount for a fiscal period is equal to the agreed proportion of the amount in respect of the member for the fiscal period.

2007, c. 12, s. 122; 2009, c. 15, s. 209; 2015, c. 21, s. 396.

2009-06-04

1029.8.16.1.1. In this division,

“excluded contract” means an eligible research contract within the meaning of paragraph a.2 of section 1029.8.1 or a university research contract within the meaning of paragraph b of that section;

“overhead expenditure” means an expenditure made by or on behalf of a taxpayer or partnership for scientific research and experimental development undertaken under an agreement referred to in the first paragraph of section 1029.8.16.1.4 or 1029.8.16.1.5, other than

(a)  an expenditure of a current nature incurred for, and all or substantially all of which was attributable to, the lease of premises, facilities or equipment for the prosecution of scientific research and experimental development undertaken in Canada, except an expenditure for general purpose office furniture or equipment;

(b)  an expenditure incurred for the prosecution of scientific research and experimental development in Canada directly undertaken on behalf of the taxpayer or partnership;

(c)  an expenditure of a capital nature that at the time it was incurred was for the provision of premises, facilities or equipment, except an expenditure for general purpose office furniture or equipment, if at that time it was intended

i.  that such premises, facilities or equipment would be used, during all or substantially all of their operating time in their expected useful life, for the prosecution of scientific research and experimental development undertaken in Canada, or

ii.  that all or substantially all of their value would be consumed in the prosecution of scientific research and experimental development undertaken in Canada;

(d)  that portion of an expenditure incurred for the salary or wages of an employee who is directly engaged in scientific research and experimental development in Canada that may reasonably be considered to be attributable to such work having regard to the time spent by the employee on that work and, for that purpose, if all or substantially all of the employee’s working time is spent on such scientific research and experimental development, that portion of the expenditure is deemed equal to the amount of the expenditure;

(e)  an expenditure incurred in relation to the cost of materials consumed in the prosecution of scientific research and experimental development undertaken in Canada; and

(f)  one-half of any other expenditure of a current nature incurred for the lease of premises, facilities or equipment used primarily for the prosecution of scientific research and experimental development undertaken in Canada, except an expenditure for general purpose office furniture or equipment;

“public body” means

(a)  a government, a municipality or another public authority;

(b)  a body a majority of whose members come from the Québec or federal public sector, that is, are appointed by a minister, a government, a municipality, another public authority or another public body;

(c)  a body whose personnel is appointed in accordance with the Public Service Act (chapter F-3.1.1) or the Public Service Employment Act (Statutes of Canada, 2003, chapter 22);

(d)  a body more than 50% of whose financing is derived from Québec or federal public funds, that is from the Consolidated Revenue Fund or the federal treasury, a government, a municipality, another public authority or another public body;

(e)  an entity designated by the Minister as a public body; and

(f)  a combination of entities or bodies referred to in any of paragraphs a to e;

“public partner” at a particular time means

(a)  an eligible public research centre within the meaning of paragraph a.1 of section 1029.8.1;

(b)  an eligible research consortium within the meaning of paragraph a.1.1 of section 1029.8.1;

(c)  an eligible university entity within the meaning of paragraph f of section 1029.8.1;

(d)  a public body;

(e)  a trust one of the capital or income beneficiaries of which is an eligible university entity, an eligible public research centre, an eligible research consortium or a public body;

(f)  a partnership if, in the 24 months preceding the particular time, or at a later time determined by the Minister, the members of the partnership that are referred to in any of paragraphs a to e and g have, directly or indirectly in any manner whatever, interests in the partnership having a fair market value, at that time, of more than 50% of the fair market value of all the members’ interests in the partnership; and

(g)  a corporation that, in the 24 months preceding the particular time, or at a later time determined by the Minister, is controlled, directly or indirectly in any manner whatever, by an entity, a person or a combination of entities or persons referred to in any of paragraphs a to f;

“qualified expenditure” means an expenditure made in respect of scientific research and experimental development by a taxpayer or partnership that is an expenditure referred to in subsection 1 of section 222 or in paragraph a of section 223, other than such an expenditure referred to in section 1029.8.16.1.6, and includes a prescribed proxy amount;

“wages incurred” for scientific research and experimental development undertaken in Québec under an agreement referred to in the first paragraph of section 1029.8.16.1.4 or 1029.8.16.1.5, means that portion of an expenditure incurred as salaries, wages or other remuneration, including bonuses, in respect of an individual, other than a trust, who is directly engaged in that research and development, that can reasonably be considered to relate to that research and development, having regard to the time spent by the individual on that research and development.

For the purposes of this division, the share of a member of a partnership of an amount for a fiscal period is equal to the agreed proportion of the amount in respect of the member for the fiscal period.

2007, c. 12, s. 122; 2009, c. 15, s. 209.

2007-11-07

1029.8.16.1.1. In this division,

“excluded partner” at a particular time means

(a)  an eligible public research centre within the meaning of paragraph a.1 of section 1029.8.1;

(b)  an eligible research consortium within the meaning of paragraph a.1.1 of section 1029.8.1;

(c)  an eligible university entity within the meaning of paragraph f of section 1029.8.1;

(d)  a public body;

(e)  a trust one of the capital or income beneficiaries of which is an eligible university entity, an eligible public research centre, an eligible research consortium or a public body;

(f)  a partnership if, in the 24 months preceding the particular time, or at a later time determined by the Minister, the members of the partnership that are referred to in any of paragraphs a to e and g have, directly or indirectly in any manner whatever, interests in the partnership having a fair market value, at that time, of more than 50% of the fair market value of all the members’ interests in the partnership; and

(g)  a corporation that, in the 24 months preceding the particular time, or at a later time determined by the Minister, is controlled, directly or indirectly in any manner whatever, by an entity, a person or a combination of entities or persons referred to in any of paragraphs a to f;

“public body” means

(a)  a government, a municipality or another public authority;

(b)  a body a majority of whose members come from the Québec or federal public sector, that is, are appointed by a minister, a government, a municipality, another public authority or another public body;

(c)  a body whose personnel is appointed in accordance with the Public Service Act (chapter F-3.1.1) or the Public Service Employment Act (Statutes of Canada, 2003, chapter 22);

(d)  a body more than 50% of whose financing is derived from Québec or federal public funds, that is from the consolidated revenue fund or the federal treasury, a government, a municipality, another public authority or another public body;

(e)  an entity designated by the Minister as a public body; and

(f)  a combination of entities or bodies referred to in any of paragraphs a to e;

“qualified expenditure” means an expenditure made in respect of scientific research and experimental development by a taxpayer or partnership that is an expenditure referred to in subsection 1 of section 222 or in paragraph a of section 223, other than such an expenditure referred to in section 1029.8.16.1.6, and includes a prescribed proxy amount;

“overhead expenditure” means an expenditure made by or on behalf of a taxpayer or partnership for scientific research and experimental development undertaken under an agreement referred to in the first paragraph of section 1029.8.16.1.4 or 1029.8.16.1.5, other than

(a)  an expenditure of a current nature incurred for, and all or substantially all of which was attributable to, the lease of premises, facilities or equipment for the prosecution of scientific research and experimental development undertaken in Canada, except an expenditure for general purpose office furniture or equipment;

(b)  an expenditure incurred for the prosecution of scientific research and experimental development in Canada directly undertaken on behalf of the taxpayer or partnership;

(c)  an expenditure of a capital nature that at the time it was incurred was for the provision of premises, facilities or equipment, except an expenditure for general purpose office furniture or equipment, if at that time it was intended

i.  that such premises, facilities or equipment would be used, during all or substantially all of their operating time in their expected useful life, for the prosecution of scientific research and experimental development undertaken in Canada, or

ii.  that all or substantially all of their value would be consumed in the prosecution of scientific research and experimental development undertaken in Canada;

(d)  that portion of an expenditure incurred for the salary or wages of an employee who is directly engaged in scientific research and experimental development in Canada that may reasonably be considered to be attributable to such work having regard to the time spent by the employee on that work and, for that purpose, if all or substantially all of the employee’s working time is spent on such scientific research and experimental development, that portion of the expenditure is deemed equal to the amount of the expenditure;

(e)  an expenditure incurred in relation to the cost of materials consumed in the prosecution of scientific research and experimental development undertaken in Canada; and

(f)  one-half of any other expenditure of a current nature incurred for the lease of premises, facilities or equipment used primarily for the prosecution of scientific research and experimental development undertaken in Canada, except an expenditure for general purpose office furniture or equipment;

“wages incurred” for scientific research and experimental development undertaken in Québec under an agreement referred to in the first paragraph of section 1029.8.16.1.4 or 1029.8.16.1.5, means that portion of an expenditure incurred as salaries, wages or other remuneration, including bonuses, in respect of an individual, other than a trust, who is directly engaged in that research and development, that can reasonably be considered to relate to that research and development, having regard to the time spent by the individual on that research and development.

For the purposes of this division, the share of a member of a partnership of an amount for a fiscal period is equal to the proportion of that amount that the member’s share of the income or loss of the partnership for that fiscal period is of the income or loss of the partnership for that fiscal period, on the assumption that, if the income and loss of the partnership for that fiscal period are nil, the partnership’s income for that fiscal period is equal to $1,000,000.

2007, c. 12, s. 122.