I-3 - Taxation Act

Section 1029.8.36.0.107 Disposition versions

2019-06-19

1029.8.36.0.107. In this division,

“balance of the threshold of the qualified expenditures” of a corporation for a taxation year means an amount equal to the amount by which $50,000 exceeds the amount determined in its respect for the year under section 1029.8.36.0.107.1;

“eligible components” of a qualified tourist accommodation establishment means

(a)  the rooms, including bathrooms;

(b)  the dining rooms;

(c)  the foyer, reception, rest areas, public lavatories, bar, shops, meeting rooms and other interior facilities that constitute public areas, except a fitness room, a health centre, a room equipped with a pool, spa or sauna, a games room or a parking lot; and

(d)  the exterior structure of the building, in particular the facing, roofing, doors and windows;

“eligible contract” means a contract entered into after 20 March 2012 and before 1 January 2016 between a corporation or a partnership and a qualified contractor under which the qualified contractor undertakes to carry out eligible work in respect of a qualified tourist accommodation establishment of the corporation or partnership;

“eligible work” in respect of a qualified tourist accommodation establishment of a qualified corporation or a qualified partnership means the following particular work carried out while the tourist accommodation establishment qualifies as a qualified tourist accommodation establishment and relating to eligible components of the tourist accommodation establishment (other than work consisting exclusively of repair or maintenance work on the tourist accommodation establishment), and work required to restore the land on which the tourist accommodation establishment is situated to the condition it was in before the particular work was carried out:

(a)  refurbishment work done to improve the appearance and functional nature of the tourist accommodation establishment;

(b)  reorganization work that consists in altering the interior distribution of the rooms, openings and divisions of the tourist accommodation establishment without increasing the floor space or volume; and

(c)  improvement, conversion or expansion work on the tourist accommodation establishment;

“excluded corporation” for a taxation year means

(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;

“excluded region” means the Montréal census metropolitan area and the Québec census metropolitan area, as described in the Standard Geographical Classification (SGC) 2011 published by Statistics Canada;

“excluded tourist accommodation establishment” means a tourist accommodation establishment of a corporation or a partnership that, prior to the beginning of eligible work in respect of the tourist accommodation establishment, is the object of

(a)  a notice of expropriation;

(b)  a reserve for public purposes; or

(c)  a prior notice of the exercise of a hypothecary right registered in the registry office or any other procedure calling the corporation’s or partnership’s right of ownership of the tourist accommodation establishment into question;

“expenditure relating to eligible work” for a qualified corporation or a qualified partnership means an expenditure that is attributable to the carrying out of eligible work provided for in an eligible contract entered into in respect of a qualified tourist accommodation establishment of the corporation or partnership and that corresponds to the aggregate of

(a)  the cost of labour supplied by the qualified contractor who is a party to the eligible contract for the eligible work carried out before 1 January 2016, excluding the amount of any goods and services tax and Québec sales tax applicable; and

(b)  the cost of movable property acquired, before 1 January 2016, from the qualified contractor or from a qualified merchant for use in the carrying out of the eligible work provided for in the eligible contract, excluding the amount of any goods and services tax and Québec sales tax applicable, if, after the work is carried out, the property

i.  has been incorporated into the qualified tourist accommodation establishment, has lost its individuality and ensures the utility of the establishment, or

ii.  has been permanently physically attached or joined to the qualified tourist accommodation establishment, without losing its individuality or being incorporated into the qualified tourist accommodation establishment, and ensures the utility of the establishment;

“qualified contractor” means a person or partnership that, in respect of an eligible contract entered into with a corporation, deals at arm’s length with the corporation, a specified shareholder of the corporation or, if the corporation is a cooperative, a specified member of the cooperative or, in respect of an eligible contract entered into with a partnership, deals at arm’s length with a corporation that is a member of the partnership, a specified shareholder of that corporation or, if the corporation is a cooperative, a specified member of the cooperative, and that

(a)  at the time the contract is entered into, has an establishment in Québec; and

(b)  at the time the eligible work provided for in the contract is being carried out and if required for the carrying out of such work, is the holder of the appropriate licence issued, in accordance with the Building Act (chapter B-1.1), by the Régie du bâtiment du Québec, the Corporation des maîtres électriciens du Québec or the Corporation des maîtres mécaniciens en tuyauterie du Québec and, if applicable, has paid the security provided for in that Act;

“qualified corporation” for a particular taxation year means a corporation that, in the particular year, owns a qualified tourist accommodation establishment and meets the following conditions:

(a)  the corporation’s gross revenue for the particular year or the taxation year preceding the particular year is at least $100,000; and

(b)  the corporation’s assets shown in its financial statements submitted to its shareholders for its taxation year preceding the particular year or, if the corporation is in its first fiscal period, at the beginning of that fiscal period, is at least $400,000;

“qualified expenditure” of a qualified corporation for a taxation year or of a qualified partnership for a fiscal period means the aggregate of all amounts each of which is an expenditure relating to eligible work of the corporation or partnership that is incurred after 20 March 2012 by the corporation in the taxation year or by the partnership in the fiscal period;

“qualified merchant” means a person or partnership who sells property to a qualified corporation or a qualified partnership for use in the carrying out of eligible work of the qualified corporation or qualified partnership, who, at the time of the sale, has an establishment in Québec and who

(a)  if the property is sold to a qualified corporation, deals at arm’s length with the qualified corporation, a specified shareholder of the qualified corporation or, if the qualified corporation is a cooperative, a specified member of the cooperative; or

(b)  if the property is sold to a qualified partnership, deals at arm’s length with a corporation that is a member of the qualified partnership, a specified shareholder of that corporation or, if the corporation is a cooperative, a specified member of the cooperative;

“qualified partnership” for a particular fiscal period ended in a particular taxation year of a corporation means a partnership that, in the particular fiscal period, carries on a business in Québec, has an establishment in Québec, owns a qualified tourist accommodation establishment and meets the following conditions:

(a)  the amount that would be the gross revenue of the partnership for its fiscal period that ends in the taxation year preceding the particular taxation year or for the particular fiscal period if, for the purposes of the definition of “gross revenue” in section 1, the qualified partnership was a corporation, is at least $100,000; and

(b)  the assets of the partnership shown in its financial statements for the particular fiscal period or, if the partnership is in its first fiscal period, at the beginning of that fiscal period is at least $400,000;

“qualified tourist accommodation establishment” means a tourist accommodation establishment (other than an excluded tourist accommodation establishment) that is located in Québec, elsewhere than in an excluded region, and in respect of which a classification certificate, valid for a corporation’s taxation year or a partnership’s fiscal period during which eligible work was carried out in respect of the tourist accommodation establishment, has been issued under the Act respecting tourist accommodation establishments (chapter E-14.2), certifying that the tourist accommodation establishment is a hotel establishment, tourist home, resort, bed and breakfast establishment or youth hostel;

“specified member” of a corporation that is a cooperative, in a taxation year, means a member having, directly or indirectly, at any time in the year, at least 10% of the votes at a meeting of the members of the cooperative.

For the purposes of the definition of “qualified tourist accommodation establishment” in the first paragraph, a classification certificate, issued under the Act respecting tourist accommodation establishments, that is valid throughout the duration of the eligible work carried out in a taxation year or a fiscal period, as the case may be, in respect of a qualified tourist accommodation establishment is deemed to be valid, in relation to the eligible work, for the taxation year or fiscal period. However, for the purposes of that definition and this paragraph, a classification certificate that is suspended is deemed not to be valid during the suspension period.

For the purposes of the definitions of “qualified corporation” and “qualified partnership” in the first paragraph and for the purpose of determining the assets of a corporation or a partnership, the following rules apply:

(a)  if the financial statements of the corporation or partnership have not been prepared or were not prepared in accordance with generally accepted accounting principles, its assets are those that would be shown in the financial statements if they had been prepared in accordance with those accounting principles; and

(b)  if the corporation is a cooperative, paragraph b of the definition of “qualified corporation” in the first paragraph is to be read as if “submitted to its shareholders” was replaced by “submitted to its members”.

2013, c. 10, s. 116; 2015, c. 21, s. 439; 2015, c. 24, s. 140; 2019, c. 14, s. 349.

2015-10-26

1029.8.36.0.107. In this division,

“balance of the threshold of the qualified expenditures” of a corporation for a taxation year means an amount equal to the amount by which $50,000 exceeds the amount determined in its respect for the year under section 1029.8.36.0.107.1;

“eligible components” of a qualified tourist accommodation establishment means

(a)  the rooms, including bathrooms;

(b)  the dining rooms;

(c)  the foyer, reception, rest areas, public lavatories, bar, shops, meeting rooms and other interior facilities that constitute public areas, except a fitness room, a health centre, a room equipped with a pool, spa or sauna, a games room or a parking lot; and

(d)  the exterior structure of the building, in particular the facing, roofing, doors and windows;

“eligible contract” means a contract entered into after 20 March 2012 and before 1 January 2016 between a corporation or a partnership and a qualified contractor under which the qualified contractor undertakes to carry out eligible work in respect of a qualified tourist accommodation establishment of the corporation or partnership;

“eligible work” in respect of a qualified tourist accommodation establishment of a qualified corporation or a qualified partnership means the following particular work carried out while the tourist accommodation establishment qualifies as a qualified tourist accommodation establishment and relating to eligible components of the tourist accommodation establishment (other than work consisting exclusively of repair or maintenance work on the tourist accommodation establishment), and work required to restore the land on which the tourist accommodation establishment is situated to the condition it was in before the particular work was carried out:

(a)  refurbishment work done to improve the appearance and functional nature of the tourist accommodation establishment;

(b)  reorganization work that consists in altering the interior distribution of the rooms, openings and divisions of the tourist accommodation establishment without increasing the floor space or volume; and

(c)  improvement, conversion or expansion work on the tourist accommodation establishment;

“excluded corporation” for a taxation year means

(a)  a corporation that is exempt from tax for the year under Book VIII, other than an insurer referred to in paragraph k of section 998 that is not so exempt from tax on all of its taxable income for the year because of section 999.0.1; or

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

“excluded region” means the Montréal census metropolitan area and the Québec census metropolitan area, as described in the Standard Geographical Classification (SGC) 2011 published by Statistics Canada;

“excluded tourist accommodation establishment” means a tourist accommodation establishment of a corporation or a partnership that, prior to the beginning of eligible work in respect of the tourist accommodation establishment, is the object of

(a)  a notice of expropriation;

(b)  a reserve for public purposes; or

(c)  a prior notice of the exercise of a hypothecary right registered in the registry office or any other procedure calling the corporation’s or partnership’s right of ownership of the tourist accommodation establishment into question;

“expenditure relating to eligible work” for a qualified corporation or a qualified partnership means an expenditure that is attributable to the carrying out of eligible work provided for in an eligible contract entered into in respect of a qualified tourist accommodation establishment of the corporation or partnership and that corresponds to the aggregate of

(a)  the cost of labour supplied by the qualified contractor who is a party to the eligible contract for the eligible work carried out before 1 January 2016, excluding the amount of any goods and services tax and Québec sales tax applicable; and

(b)  the cost of movable property acquired, before 1 January 2016, from the qualified contractor or from a qualified merchant for use in the carrying out of the eligible work provided for in the eligible contract, excluding the amount of any goods and services tax and Québec sales tax applicable, if, after the work is carried out, the property

i.  has been incorporated into the qualified tourist accommodation establishment, has lost its individuality and ensures the utility of the establishment, or

ii.  has been permanently physically attached or joined to the qualified tourist accommodation establishment, without losing its individuality or being incorporated into the qualified tourist accommodation establishment, and ensures the utility of the establishment;

“qualified contractor” means a person or partnership that, in respect of an eligible contract entered into with a corporation, deals at arm’s length with the corporation, a specified shareholder of the corporation or, if the corporation is a cooperative, a specified member of the cooperative or, in respect of an eligible contract entered into with a partnership, deals at arm’s length with a corporation that is a member of the partnership, a specified shareholder of that corporation or, if the corporation is a cooperative, a specified member of the cooperative, and that

(a)  at the time the contract is entered into, has an establishment in Québec; and

(b)  at the time the eligible work provided for in the contract is being carried out and if required for the carrying out of such work, is the holder of the appropriate licence issued, in accordance with the Building Act (chapter B-1.1), by the Régie du bâtiment du Québec, the Corporation des maîtres électriciens du Québec or the Corporation des maîtres mécaniciens en tuyauterie du Québec and, if applicable, has paid the security provided for in that Act;

“qualified corporation” for a particular taxation year means a corporation that, in the particular year, owns a qualified tourist accommodation establishment and meets the following conditions:

(a)  the corporation’s gross revenue for the particular year or the taxation year preceding the particular year is at least $100,000; and

(b)  the corporation’s assets shown in its financial statements submitted to its shareholders for its taxation year preceding the particular year or, if the corporation is in its first fiscal period, at the beginning of that fiscal period, is at least $400,000;

“qualified expenditure” of a qualified corporation for a taxation year or of a qualified partnership for a fiscal period means the aggregate of all amounts each of which is an expenditure relating to eligible work of the corporation or partnership that is incurred after 20 March 2012 by the corporation in the taxation year or by the partnership in the fiscal period;

“qualified merchant” means a person or partnership who sells property to a qualified corporation or a qualified partnership for use in the carrying out of eligible work of the qualified corporation or qualified partnership, who, at the time of the sale, has an establishment in Québec and who

(a)  if the property is sold to a qualified corporation, deals at arm’s length with the qualified corporation, a specified shareholder of the qualified corporation or, if the qualified corporation is a cooperative, a specified member of the cooperative; or

(b)  if the property is sold to a qualified partnership, deals at arm’s length with a corporation that is a member of the qualified partnership, a specified shareholder of that corporation or, if the corporation is a cooperative, a specified member of the cooperative;

“qualified partnership” for a particular fiscal period ended in a particular taxation year of a corporation means a partnership that, in the particular fiscal period, carries on a business in Québec, has an establishment in Québec, owns a qualified tourist accommodation establishment and meets the following conditions:

(a)  the amount that would be the gross revenue of the partnership for its fiscal period that ends in the taxation year preceding the particular taxation year or for the particular fiscal period if, for the purposes of the definition of “gross revenue” in section 1, the qualified partnership was a corporation, is at least $100,000; and

(b)  the assets of the partnership shown in its financial statements for the particular fiscal period or, if the partnership is in its first fiscal period, at the beginning of that fiscal period is at least $400,000;

“qualified tourist accommodation establishment” means a tourist accommodation establishment (other than an excluded tourist accommodation establishment) that is located in Québec, elsewhere than in an excluded region, and in respect of which a classification certificate, valid for a corporation’s taxation year or a partnership’s fiscal period during which eligible work was carried out in respect of the tourist accommodation establishment, has been issued under the Act respecting tourist accommodation establishments (chapter E-14.2), certifying that the tourist accommodation establishment is a hotel establishment, tourist home, resort, bed and breakfast establishment or youth hostel;

“specified member” of a corporation that is a cooperative, in a taxation year, means a member having, directly or indirectly, at any time in the year, at least 10% of the votes at a meeting of the members of the cooperative.

For the purposes of the definition of “qualified tourist accommodation establishment” in the first paragraph, a classification certificate, issued under the Act respecting tourist accommodation establishments, that is valid throughout the duration of the eligible work carried out in a taxation year or a fiscal period, as the case may be, in respect of a qualified tourist accommodation establishment is deemed to be valid, in relation to the eligible work, for the taxation year or fiscal period. However, for the purposes of that definition and this paragraph, a classification certificate that is suspended is deemed not to be valid during the suspension period.

For the purposes of the definitions of “qualified corporation” and “qualified partnership” in the first paragraph and for the purpose of determining the assets of a corporation or a partnership, the following rules apply:

(a)  if the financial statements of the corporation or partnership have not been prepared or were not prepared in accordance with generally accepted accounting principles, its assets are those that would be shown in the financial statements if they had been prepared in accordance with those accounting principles; and

(b)  if the corporation is a cooperative, paragraph b of the definition of “qualified corporation” in the first paragraph is to be read as if “submitted to its shareholders” was replaced by “submitted to its members”.

2013, c. 10, s. 116; 2015, c. 21, s. 439; 2015, c. 24, s. 140.

2015-10-21

1029.8.36.0.107. In this division,

“balance of the threshold of the qualified expenditures” of a corporation for a taxation year means an amount equal to the amount by which $50,000 exceeds the amount determined in its respect for the year under section 1029.8.36.0.107.1;

“eligible components” of a qualified tourist accommodation establishment means

(a)  the rooms, including bathrooms;

(b)  the dining rooms;

(c)  the foyer, reception, rest areas, public lavatories, bar, shops, meeting rooms and other interior facilities that constitute public areas, except a fitness room, a health centre, a room equipped with a pool, spa or sauna, a games room or a parking lot; and

(d)  the exterior structure of the building, in particular the facing, roofing, doors and windows;

“eligible contract” means a contract entered into after 20 March 2012 and before 1 January 2016 between a corporation or a partnership and a qualified contractor under which the qualified contractor undertakes to carry out eligible work in respect of a qualified tourist accommodation establishment of the corporation or partnership;

“eligible work” in respect of a qualified tourist accommodation establishment of a qualified corporation or a qualified partnership means the following particular work relating to the eligible components of the tourist accommodation establishment, other than work consisting exclusively of repair or maintenance work on the tourist accommodation establishment, and work required to restore the land on which the tourist accommodation establishment is situated to the condition it was in before the particular work was carried out:

(a)  refurbishment work done to improve the appearance and functional nature of the tourist accommodation establishment;

(b)  reorganization work that consists in altering the interior distribution of the rooms, openings and divisions of the tourist accommodation establishment without increasing the floor space or volume; and

(c)  improvement, conversion or expansion work on the tourist accommodation establishment;

“excluded corporation” for a taxation year means

(a)  a corporation that is exempt from tax for the year under Book VIII, other than an insurer referred to in paragraph k of section 998 that is not so exempt from tax on all of its taxable income for the year because of section 999.0.1; or

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

“excluded region” means the Montréal census metropolitan area and the Québec census metropolitan area, as described in the Standard Geographical Classification (SGC) 2011 published by Statistics Canada;

“excluded tourist accommodation establishment” means a tourist accommodation establishment of a corporation or a partnership that, prior to the beginning of eligible work in respect of the tourist accommodation establishment, is the object of

(a)  a notice of expropriation;

(b)  a reserve for public purposes; or

(c)  a prior notice of the exercise of a hypothecary right registered in the registry office or any other procedure calling the corporation’s or partnership’s right of ownership of the tourist accommodation establishment into question;

“expenditure relating to eligible work” for a qualified corporation or a qualified partnership means an expenditure that is attributable to the carrying out of eligible work provided for in an eligible contract entered into in respect of a qualified tourist accommodation establishment of the corporation or partnership and that corresponds to the aggregate of

(a)  the cost of labour supplied by the qualified contractor who is a party to the eligible contract for the eligible work carried out before 1 January 2016, excluding the amount of any goods and services tax and Québec sales tax applicable; and

(b)  the cost of movable property acquired, before 1 January 2016, from the qualified contractor or from a qualified merchant for use in the carrying out of the eligible work provided for in the eligible contract, excluding the amount of any goods and services tax and Québec sales tax applicable, if, after the work is carried out, the property

i.  has been incorporated into the qualified tourist accommodation establishment, has lost its individuality and ensures the utility of the establishment, or

ii.  has been permanently physically attached or joined to the qualified tourist accommodation establishment, without losing its individuality or being incorporated into the qualified tourist accommodation establishment, and ensures the utility of the establishment;

“qualified contractor” means a person or partnership that, in respect of an eligible contract entered into with a corporation, deals at arm’s length with the corporation, a specified shareholder of the corporation or, if the corporation is a cooperative, a specified member of the cooperative or, in respect of an eligible contract entered into with a partnership, deals at arm’s length with a corporation that is a member of the partnership, a specified shareholder of that corporation or, if the corporation is a cooperative, a specified member of the cooperative, and that

(a)  at the time the contract is entered into, has an establishment in Québec; and

(b)  at the time the eligible work provided for in the contract is being carried out and if required for the carrying out of such work, is the holder of the appropriate licence issued, in accordance with the Building Act (chapter B-1.1), by the Régie du bâtiment du Québec, the Corporation des maîtres électriciens du Québec or the Corporation des maîtres mécaniciens en tuyauterie du Québec and, if applicable, has paid the security provided for in that Act;

“qualified corporation” for a particular taxation year means a corporation that, in the particular year, owns a qualified tourist accommodation establishment and meets the following conditions:

(a)  the corporation’s gross revenue for the particular year or the taxation year preceding the particular year is at least $100,000; and

(b)  the corporation’s assets shown in its financial statements submitted to its shareholders for its taxation year preceding the particular year or, if the corporation is in its first fiscal period, at the beginning of that fiscal period, is at least $400,000;

“qualified expenditure” of a qualified corporation for a taxation year or of a qualified partnership for a fiscal period means the aggregate of all amounts each of which is an expenditure relating to eligible work of the corporation or partnership that is incurred after 20 March 2012 by the corporation in the taxation year or by the partnership in the fiscal period;

“qualified merchant” means a person or partnership who sells property to a qualified corporation or a qualified partnership for use in the carrying out of eligible work of the qualified corporation or qualified partnership, who, at the time of the sale, has an establishment in Québec and who

(a)  if the property is sold to a qualified corporation, deals at arm’s length with the qualified corporation, a specified shareholder of the qualified corporation or, if the qualified corporation is a cooperative, a specified member of the cooperative; or

(b)  if the property is sold to a qualified partnership, deals at arm’s length with a corporation that is a member of the qualified partnership, a specified shareholder of that corporation or, if the corporation is a cooperative, a specified member of the cooperative;

“qualified partnership” for a particular fiscal period ended in a particular taxation year of a corporation means a partnership that, in the particular fiscal period, carries on a business in Québec, has an establishment in Québec, owns a qualified tourist accommodation establishment and meets the following conditions:

(a)  the amount that would be the gross revenue of the partnership for its fiscal period that ends in the taxation year preceding the particular taxation year or for the particular fiscal period if, for the purposes of the definition of “gross revenue” in section 1, the qualified partnership was a corporation, is at least $100,000; and

(b)  the assets of the partnership shown in its financial statements for the particular fiscal period or, if the partnership is in its first fiscal period, at the beginning of that fiscal period is at least $400,000;

“qualified tourist accommodation establishment” of a corporation for a taxation year or of a partnership for a fiscal period means a tourist accommodation establishment, other than an excluded tourist accommodation establishment, that is located in Québec, elsewhere than in an excluded region, and in respect of which a classification certificate, valid for the year or fiscal period, has been issued to the corporation or partnership under the Act respecting tourist accommodation establishments (chapter E-14.2), certifying that the tourist accommodation establishment is a hotel establishment, tourist home, resort, bed and breakfast establishment or youth hostel;

“specified member” of a corporation that is a cooperative, in a taxation year, means a member having, directly or indirectly, at any time in the year, at least 10% of the votes at a meeting of the members of the cooperative.

For the purposes of the definition of “qualified tourist accommodation establishment” in the first paragraph, a qualified corporation or a qualified partnership that holds a classification certificate, issued under the Act respecting tourist accommodation establishments, valid throughout the duration of the eligible work carried out in a taxation year or a fiscal period, as applicable, in respect of a qualified tourist accommodation establishment of the corporation or partnership is deemed to hold such a valid classification certificate for the taxation year or fiscal period. However, for the purposes of that definition and this paragraph, a qualified corporation or a qualified partnership whose classification certificate is suspended is deemed not to hold a valid classification certificate during the suspension period.

For the purposes of the definitions of “qualified corporation” and “qualified partnership” in the first paragraph and for the purpose of determining the assets of a corporation or a partnership, the following rules apply:

(a)  if the financial statements of the corporation or partnership have not been prepared or were not prepared in accordance with generally accepted accounting principles, its assets are those that would be shown in the financial statements if they had been prepared in accordance with those accounting principles; and

(b)  if the corporation is a cooperative, paragraph b of the definition of “qualified corporation” in the first paragraph is to be read as if “submitted to its shareholders” was replaced by “submitted to its members”.

2013, c. 10, s. 116; 2015, c. 21, s. 439.

2013-06-05

1029.8.36.0.107. In this division,

“eligible components” of a qualified tourist accommodation establishment means

(a)  the rooms, including bathrooms;

(b)  the dining rooms;

(c)  the foyer, reception, rest areas, public lavatories, bar, shops, meeting rooms and other interior facilities that constitute public areas, except a fitness room, a health centre, a room equipped with a pool, spa or sauna, a games room or a parking lot; and

(d)  the exterior structure of the building, in particular the facing, roofing, doors and windows;

“eligible contract” means a contract entered into after 20 March 2012 and before 1 January 2016 between a corporation or a partnership and a qualified contractor under which the qualified contractor undertakes to carry out eligible work in respect of a qualified tourist accommodation establishment of the corporation or partnership;

“eligible work” in respect of a qualified tourist accommodation establishment of a qualified corporation or a qualified partnership means the following particular work relating to the eligible components of the tourist accommodation establishment, other than work consisting exclusively of repair or maintenance work on the tourist accommodation establishment, and work required to restore the land on which the tourist accommodation establishment is situated to the condition it was in before the particular work was carried out:

(a)  refurbishment work done to improve the appearance and functional nature of the tourist accommodation establishment;

(b)  reorganization work that consists in altering the interior distribution of the rooms, openings and divisions of the tourist accommodation establishment without increasing the floor space or volume; and

(c)  improvement, conversion or expansion work on the tourist accommodation establishment;

“excluded corporation” for a taxation year means

(a)  a corporation that is exempt from tax for the year under Book VIII, other than an insurer referred to in paragraph k of section 998 that is not so exempt from tax on all of its taxable income for the year because of section 999.0.1; or

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

“excluded region” means the Montréal census metropolitan area and the Québec census metropolitan area, as described in the Standard Geographical Classification (SGC) 2011 published by Statistics Canada;

“excluded tourist accommodation establishment” means a tourist accommodation establishment of a corporation or a partnership that, prior to the beginning of eligible work in respect of the tourist accommodation establishment, is the object of

(a)  a notice of expropriation;

(b)  a reserve for public purposes; or

(c)  a prior notice of the exercise of a hypothecary right registered in the registry office or any other procedure calling the corporation’s or partnership’s right of ownership of the tourist accommodation establishment into question;

“expenditure relating to eligible work” for a qualified corporation or a qualified partnership means an expenditure that is attributable to the carrying out of eligible work provided for in an eligible contract entered into in respect of a qualified tourist accommodation establishment of the corporation or partnership and that corresponds to the aggregate of

(a)  the cost of labour supplied by the qualified contractor who is a party to the eligible contract for the eligible work carried out before 1 January 2016, excluding the amount of any goods and services tax and Québec sales tax applicable; and

(b)  the cost of movable property acquired, before 1 January 2016, from the qualified contractor or from a qualified merchant for use in the carrying out of the eligible work provided for in the eligible contract, excluding the amount of any goods and services tax and Québec sales tax applicable, if, after the work is carried out, the property

i.  has been incorporated into the qualified tourist accommodation establishment, has lost its individuality and ensures the utility of the establishment, or

ii.  has been permanently physically attached or joined to the qualified tourist accommodation establishment, without losing its individuality or being incorporated into the qualified tourist accommodation establishment, and ensures the utility of the establishment;

“qualified contractor” means a person or partnership that, in respect of an eligible contract entered into with a corporation, deals at arm’s length with the corporation, a specified shareholder of the corporation or, if the corporation is a cooperative, a specified member of the cooperative or, in respect of an eligible contract entered into with a partnership, deals at arm’s length with a corporation that is a member of the partnership, a specified shareholder of that corporation or, if the corporation is a cooperative, a specified member of the cooperative, and that

(a)  at the time the contract is entered into, has an establishment in Québec; and

(b)  at the time the eligible work provided for in the contract is being carried out and if required for the carrying out of such work, is the holder of the appropriate licence issued, in accordance with the Building Act (chapter B-1.1), by the Régie du bâtiment du Québec, the Corporation des maîtres électriciens du Québec or the Corporation des maîtres mécaniciens en tuyauterie du Québec and, if applicable, has paid the security provided for in that Act;

“qualified corporation” for a particular taxation year means a corporation that, in the particular year, owns a qualified tourist accommodation establishment and meets the following conditions:

(a)  the corporation’s gross revenue for the particular year or the taxation year preceding the particular year is at least $100,000; and

(b)  the corporation’s assets shown in its financial statements submitted to its shareholders for its taxation year preceding the particular year or, if the corporation is in its first fiscal period, at the beginning of that fiscal period, is at least $400,000;

“qualified expenditure” of a qualified corporation for a taxation year or of a qualified partnership for a fiscal period means the aggregate of all amounts each of which is an expenditure relating to eligible work of the corporation or partnership that is incurred after 20 March 2012 by the corporation in the taxation year or by the partnership in the fiscal period;

“qualified merchant” means a person or partnership who sells property to a qualified corporation or a qualified partnership for use in the carrying out of eligible work of the qualified corporation or qualified partnership, who, at the time of the sale, has an establishment in Québec and who

(a)  if the property is sold to a qualified corporation, deals at arm’s length with the qualified corporation, a specified shareholder of the qualified corporation or, if the qualified corporation is a cooperative, a specified member of the cooperative; or

(b)  if the property is sold to a qualified partnership, deals at arm’s length with a corporation that is a member of the qualified partnership, a specified shareholder of that corporation or, if the corporation is a cooperative, a specified member of the cooperative;

“qualified partnership” for a particular fiscal period ended in a particular taxation year of a corporation means a partnership that, in the particular fiscal period, carries on a business in Québec, has an establishment in Québec, owns a qualified tourist accommodation establishment and meets the following conditions:

(a)  the amount that would be the gross revenue of the partnership for its fiscal period that ends in the taxation year preceding the particular taxation year or for the particular fiscal period if, for the purposes of the definition of “gross revenue” in section 1, the qualified partnership was a corporation, is at least $100,000; and

(b)  the assets of the partnership shown in its financial statements for the particular fiscal period or, if the partnership is in its first fiscal period, at the beginning of that fiscal period is at least $400,000;

“qualified tourist accommodation establishment” of a corporation for a taxation year or of a partnership for a fiscal period means a tourist accommodation establishment, other than an excluded tourist accommodation establishment, that is located in Québec, elsewhere than in an excluded region, and in respect of which a classification certificate, valid for the year or fiscal period, has been issued to the corporation or partnership under the Act respecting tourist accommodation establishments (chapter E-14.2), certifying that the tourist accommodation establishment is a hotel establishment, tourist home, resort, bed and breakfast establishment or youth hostel;

“specified member” of a corporation that is a cooperative, in a taxation year, means a member having, directly or indirectly, at any time in the year, at least 10% of the votes at a meeting of the members of the cooperative.

For the purposes of the definition of “qualified tourist accommodation establishment” in the first paragraph, a qualified corporation or a qualified partnership that holds a classification certificate, issued under the Act respecting tourist accommodation establishments, valid throughout the duration of the eligible work carried out in a taxation year or a fiscal period, as applicable, in respect of a qualified tourist accommodation establishment of the corporation or partnership is deemed to hold such a valid classification certificate for the taxation year or fiscal period. However, for the purposes of that definition and this paragraph, a qualified corporation or a qualified partnership whose classification certificate is suspended is deemed not to hold a valid classification certificate during the suspension period.

For the purposes of the definitions of “qualified corporation” and “qualified partnership” in the first paragraph and for the purpose of determining the assets of a corporation or a partnership, the following rules apply:

(a)  if the financial statements of the corporation or partnership have not been prepared or were not prepared in accordance with generally accepted accounting principles, its assets are those that would be shown in the financial statements if they had been prepared in accordance with those accounting principles; and

(b)  if the corporation is a cooperative, paragraph b of the definition of “qualified corporation” in the first paragraph is to be read as if “submitted to its shareholders” was replaced by “submitted to its members”.

2013, c. 10, s. 116.