I-3 - Taxation Act

Section 1029.8.36.0.106.7 Disposition versions

2023-03-15

1029.8.36.0.106.7. In this division,

“associated group” in a taxation year means all the corporations that meet the following conditions:

(a)  the corporations are associated with each other in the taxation year; and

(b)  each corporation is a qualified corporation for the taxation year;

“eligible production of pyrolysis oil” of a qualified corporation for a particular month means the total number of litres that corresponds to all of the qualified corporation’s shipments of eligible pyrolysis oil for the particular month;

“eligible pyrolysis oil” means a pyrolysis oil that is produced by a corporation in a taxation year and in respect of which a certificate has been issued to the corporation for the year, for the purposes of this division;

“month” means, in the case where a taxation year begins on a day in a calendar month other than the first day of that month, any period that begins on that day in a calendar month within the taxation year, other than the month in which the year ends, and that ends on the day immediately preceding that day in the calendar month that follows that month or, for the month in which the taxation year ends, on the day on which that year ends, and if there is no such immediately preceding day in the following month, on the last day of that month;

“pyrolysis oil production unit” of a qualified corporation means a set of properties the qualified corporation uses in producing an eligible pyrolysis oil or another type of pyrolysis oil in Québec;

“qualified corporation” for a taxation year means a corporation that, in the year, has an establishment in Québec where it carries on a business engaged in the production of pyrolysis oil, that holds a certificate issued for the purposes of this division, for that year or a preceding taxation year, in respect of a pyrolysis oil included in its eligible production of pyrolysis oil for a particular month of the year, and that is not

(a)  a corporation that is exempt from tax for the year under Book VIII; or

(b)  a corporation that would be exempt from tax for the year under section 985, but for section 192;

“shipment of eligible pyrolysis oil” of a qualified corporation in respect of a particular month means a shipment consisting of a number of litres of an eligible pyrolysis oil that the qualified corporation produces in Québec after 31 March 2018 and before 1 April 2033, that is sold in Québec in that period to a person or partnership that takes possession of the eligible pyrolysis oil in the particular month and before 1 April 2033, and that is intended for Québec.

For the purposes of the definition of “shipment of eligible pyrolysis oil” in the first paragraph, a shipment of pyrolysis oil is intended for Québec only if

(a)  it is sold by the qualified corporation to a person or a partnership and it is reasonable to expect that that person or partnership, as the case may be, acquires it for its own use or consumption in Québec or for use or consumption in Québec by another person or partnership with which it is not dealing at arm’s length; and

(b)  it is delivered, by the qualified corporation or on its behalf, and possession is taken in Québec.

If the result obtained by applying a formula in this division has more than two decimal places, only the first two decimal digits are retained and the second is increased by one unit if the third is greater than 4.

2019, c. 14, s. 348; 2023, c. 2, s. 39.

2019-06-19

1029.8.36.0.106.7. In this division,

“associated group” in a taxation year means all the corporations that meet the following conditions:

(a)  the corporations are associated with each other in the taxation year; and

(b)  each corporation is a qualified corporation for the taxation year;

“eligible production of pyrolysis oil” of a qualified corporation for a particular month means the total number of litres that corresponds to all of the qualified corporation’s shipments of eligible pyrolysis oil for the particular month;

“eligible pyrolysis oil” means a liquid mixture of oxygenated organic compounds obtained from the condensation of vapours resulting from the thermal decomposition of residual forest biomass;

“month” means, in the case where a taxation year begins on a day in a calendar month other than the first day of that month, any period that begins on that day in a calendar month within the taxation year, other than the month in which the year ends, and that ends on the day immediately preceding that day in the calendar month that follows that month or, for the month in which the taxation year ends, on the day on which that year ends, and if there is no such immediately preceding day in the following month, on the last day of that month;

“pyrolysis oil production unit” of a qualified corporation means all the property the qualified corporation uses in producing eligible pyrolysis oil or another type of pyrolysis oil in Québec;

“qualified corporation” for a taxation year means a corporation that, in the year, has an establishment in Québec where it carries on a business engaged in the production of eligible pyrolysis oil, other than a corporation

(a)  that is exempt from tax for the year under Book VIII; or

(b)  that would be exempt from tax for the year under section 985, but for section 192;

“residual forest biomass” means forest biomass resulting from harvesting activities or primary or secondary processing activities, including non-contaminated, additive-free wood from deconstruction, where it is not used in a 4R-D-type hierarchical use approach, within the meaning of the Québec residual materials management policy (chapter Q-2, r. 35.1), but excluding standing trees;

“shipment of eligible pyrolysis oil” of a qualified corporation in respect of a particular month means a shipment consisting of a number of litres of eligible pyrolysis oil that the qualified corporation produces in Québec after 31 March 2018 and before 1 April 2023, that is sold in Québec in that period to a person or partnership that takes possession of the eligible pyrolysis oil in the particular month and before 1 April 2023, and that is intended for Québec.

For the purposes of the definition of “shipment of eligible pyrolysis oil” in the first paragraph, a shipment of pyrolysis oil is intended for Québec only if

(a)  it is sold by the qualified corporation to a person or a partnership and it is reasonable to expect that that person or partnership, as the case may be, acquires it for its own use or consumption in Québec or for use or consumption in Québec by another person or partnership with which it is not dealing at arm’s length; and

(b)  it is delivered, by the qualified corporation or on its behalf, and possession is taken in Québec.

2019, c. 14, s. 348.