I-3 - Taxation Act

Section 1029.8.36.0.104 Disposition versions

2011-12-09

1029.8.36.0.104. If a qualified corporation produces eligible cellulosic ethanol in Québec and stores it in a reservoir with another type of ethanol it produced or with ethanol that it acquired from a person or partnership and that constitutes another source of supply for the reservoir, each shipment of ethanol the qualified corporation draws from that reservoir for a particular month (in this section referred to as a “shipment of mixed ethanol”) is deemed to consist of distinct shipments derived from each of the qualified corporation’s ethanol production units or each of the other sources of supply, as the case may be, that feeds the reservoir and in respect of which the number of litres is equal to the amount obtained by multiplying the number of litres making up the shipment of mixed ethanol by the proportion determined in respect of each production unit or each of the other sources of supply by the formula

(A + B)/(B + C + D).

In the formula in the first paragraph,

(a)  A is the portion of the stock of mixed ethanol in the reservoir that is attributable to the qualified corporation’s ethanol production unit or the other source of supply, as the case may be, at the beginning of the particular month;

(b)  B is the number of litres of ethanol derived from the qualified corporation’s ethanol production unit or the other source of supply, as the case may be, that is added to the reservoir during the particular month;

(c)  C is the number of litres of ethanol that is added to the reservoir during the particular month and that is not derived from the qualified corporation’s ethanol production unit or the other source of supply, as the case may be; and

(d)  D is the number of litres of ethanol that corresponds to the total stock of mixed ethanol in the reservoir at the beginning of the particular month.

For the purposes of subparagraph a of the second paragraph, the portion of the stock of mixed ethanol in the reservoir that is attributable to the qualified corporation’s ethanol production unit or the other source of supply, as the case may be, at the beginning of the particular month is equal to the number of litres of ethanol obtained by multiplying the number of litres of ethanol that corresponds to the total stock of mixed ethanol in the reservoir at the beginning of the particular month by the proportion referred to in the first paragraph that applied for the month that precedes the particular month in respect of the qualified corporation’s ethanol production unit or the other source of supply, as the case may be.

For the purposes of this division, the portion of a shipment of mixed ethanol for a particular month that, under the first paragraph, is deemed to be a distinct shipment derived from a cellulosic ethanol production unit of a qualified corporation is deemed to be a shipment of eligible cellulosic ethanol of the qualified corporation for the particular month only if the qualified corporation’s facilities allow for the precise measurement of the number of litres of ethanol derived from each of the qualified corporation’s ethanol production units and from each of the other sources of supply that feeds the reservoir before the ethanol is added.

For the purposes of this division, if a qualified corporation produces eligible cellulosic ethanol in Québec and stores it in a reservoir with ethanol that it produced before 18 March 2011 or that it acquired before that date (in this paragraph referred to as the “previous stock”), the following rules apply:

(a)  despite the first paragraph, a particular shipment of ethanol drawn from the reservoir is deemed to be a shipment drawn from the previous stock up to the number of litres that corresponds to the previous stock immediately before the particular shipment; and

(b)  the number of litres of ethanol that corresponds to the total stock of mixed ethanol in the reservoir at the beginning of the particular month must be determined without taking the previous stock into account.

2011, c. 34, s. 87.