I-3 - Taxation Act

Section 1029.8.36.0.38 Disposition versions

2021-06-04

1029.8.36.0.38. (Repealed).

2000, c. 39, s. 176; 2001, c. 51, s. 155; 2003, c. 9, s. 244; 2004, c. 21, s. 340; 2005, c. 1, s. 239; 2005, c. 23, s. 177; 2006, c. 13, s. 134; 2021, c. 18, s. 121.

2006-06-13

1029.8.36.0.38. In this division,

“eligible employee” of a corporation or partnership that carries on a recognized business in a taxation year or fiscal period, as the case may be, means an individual in respect of whom a certificate is issued to the corporation for the year, or to the partnership for the fiscal period, by Investissement Québec, certifying that, throughout the period of the year or fiscal period shown on the certificate, at least 75% of the duties of the individual relating to the individual’s employment with the corporation or partnership consists in carrying on work relating to the activities shown on the certificate issued to the corporation or partnership in respect of the recognized business and carried on in the international trade zone by the corporation or the partnership;

“excluded corporation” for a taxation year means any of the following corporations:

(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 not so exempt from tax on all of its taxable income for the year by reason of section 999.0.1;

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

(c)  (paragraph repealed); and

(d)  a corporation control of which is acquired at the beginning of the year or of a preceding taxation year, but after 11 June 2003, by a person or group of persons, unless the acquisition of control

i.  occurs before 1 July 2004 and Investissement Québec certifies that it results from a transaction that was sufficiently advanced on 11 June 2003 and was binding on the parties on that date,

ii.  is by a corporation that, at the time of the acquisition of control, is carrying on a recognized business, by a person or group of persons that controls such a corporation or by a group of persons each member of which is such a corporation or a person who, alone or together with other members of the group, controls such a corporation,

iii.  derives from the exercise after 11 June 2003 of one or more rights described in paragraph b of section 20 that were acquired before 12 June 2003, or

iv.  derives from the performance after 11 June 2003 of one or more obligations described in the third paragraph of section 21.3.5 that were contracted before 12 June 2003;

“international trade zone” means the zone that consists of the lots of the official cadastre of Mirabel that are designated by the Minister of Finance;

“qualified wages” incurred by a corporation in a taxation year, or by a partnership in a fiscal period, in respect of an eligible employee in the course of carrying on a recognized business, means the lesser of

(a)  the amount determined for the year or fiscal period pursuant to section 1029.8.36.0.39 in respect of the eligible employee in relation to the recognized business; and

(b)  any of the following amounts:

i.  where the valid certificate referred to in paragraph a of the definition of “recognized business” became effective or is deemed to have become effective, in accordance with the third paragraph, before 1 January 2001, the amount by which the amount of the wages incurred by the corporation or partnership in the year or fiscal period, but after 9 March 1999 and before 1 January 2011, in respect of the employee while the employee qualifies as an eligible employee of the corporation or partnership in relation to the recognized business, to the extent that that amount is paid, exceeds the aggregate of all amounts each of which is an amount of government assistance or non-government assistance attributable to such wages, that the corporation or partnership has received, is entitled to receive or may reasonably expect to receive on or before, in the case of the corporation, the corporation’s filing-due date for the year and, in the case of the partnership, the day that is six months after the end of the fiscal period,

ii.  where the valid certificate referred to in paragraph a of the definition of “recognized business” became effective or is deemed to have become effective, in accordance with the third paragraph, after 31 December 2000 and before 1 January 2004, the amount by which the amount of the wages incurred by the corporation or partnership in the year or fiscal period, but on or before the day of the tenth anniversary of the effective date of the certificate, in respect of the employee while the employee qualifies as an eligible employee of the corporation or partnership in relation to the recognized business, to the extent that that amount is paid, exceeds the aggregate of all amounts each of which is an amount of government assistance or non-government assistance attributable to such wages, that the corporation or partnership has received, is entitled to receive or may reasonably expect to receive on or before, in the case of the corporation, the corporation’s filing-due date for the year and, in the case of the partnership, the day that is six months after the end of the fiscal period, and

iii.  where the valid certificate referred to in paragraph a of the definition of “recognized business” became effective or is deemed to have become effective, in accordance with the third paragraph, after 31 December 2003, the amount by which the amount of the wages incurred by the corporation or partnership in the year or fiscal period, but before 1 January 2014, in respect of the employee while the employee qualifies as an eligible employee of the corporation or partnership in relation to the recognized business, to the extent that that amount is paid, exceeds the aggregate of all amounts each of which is an amount of government assistance or non-government assistance attributable to such wages, that the corporation or partnership has received, is entitled to receive or may reasonably expect to receive on or before, in the case of the corporation, the corporation’s filing-due date for the year and, in the case of the partnership, the day that is six months after the end of the fiscal period;

“recognized business” of a corporation for a taxation year, or of a partnership for a fiscal period, means a business carried on by the corporation in the year, or by the partnership in the fiscal period, in respect of which

(a)  a valid certificate for all or part of the year or fiscal period was issued to the corporation or partnership by Investissement Québec, certifying that the business activities carried on within the international trade zone relate to activities shown on the certificate; and

(b)  separate accounts are kept by the corporation or partnership, from the effective date of the certificate referred to in paragraph a, in relation to the business activities carried on within the international trade zone;

“wages” means the income computed under Chapters I and II of Title II of Book III.

Notwithstanding the definition of “eligible employee” in the first paragraph, an individual is deemed not to be an eligible employee of a corporation for a taxation year, or of a partnership for a fiscal period, if the individual, as the case may be,

(a)  is a specified shareholder of the corporation at any time in the period mentioned in that definition; or

(b)  is, at any time in the period mentioned in that definition, a member of the partnership whose share, for the fiscal period, of the partnership’s income or loss is equal to or greater than 10%, or is not dealing at arm’s length, at any time in that period, with such a member or with any member of a group of members of the partnership the total of whose shares, for the fiscal period, of the partnership’s income or loss is equal to or greater than 10%.

For the purposes of the first paragraph, where a corporation or partnership, in this paragraph referred to as the “transferee entity”, carries on at a particular time in a taxation year or fiscal period a business in respect of which Investissement Québec issued a qualification certificate and the business, according to Investissement Québec, is the continuation of a recognized business or part of a recognized business carried on before that time by a corporation or partnership, in this paragraph referred to as the “transferor entity”, the effective date of the qualification certificate issued to the transferee entity, in relation to the recognized business, is deemed to be the same as the effective date of the qualification certificate issued to the transferor entity, in relation to the recognized business or that part of the recognized business.

2000, c. 39, s. 176; 2001, c. 51, s. 155; 2003, c. 9, s. 244; 2004, c. 21, s. 340; 2005, c. 1, s. 239; 2005, c. 23, s. 177; 2006, c. 13, s. 134.

2006-03-01

1029.8.36.0.38. In this division,

"eligible employee" of a corporation or partnership that carries on a recognized business in a taxation year or fiscal period, as the case may be, means an individual in respect of whom a certificate is issued to the corporation for the year, or to the partnership for the fiscal period, by Investissement Québec, certifying that, throughout the period of the year or fiscal period shown on the certificate, at least 75% of the duties of the individual relating to the individual’s employment with the corporation or partnership consists in carrying on work relating to the activities shown on the certificate issued to the corporation or partnership in respect of the recognized business and carried on in the international trade zone by the corporation or the partnership;

"excluded corporation" for a taxation year means any of the following corporations:

(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 not so exempt from tax on all of its taxable income for the year by reason of section 999.0.1;

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

(c)  (paragraph repealed); and

(d)  a corporation control of which is acquired at any time in the year or a preceding taxation year and after 11 June 2003 by a person or group of persons, unless acquiring control of the corporation

i.  occurs before 1 July 2004 where Investissement Québec certifies that the acquisition of control results from a transaction that was sufficiently advanced on 11 June 2003 and was binding on the parties on that date,

ii.  is by a corporation carrying on at that time a recognized business, or by a group of persons all the members of which are corporations carrying on at that time a recognized business, or

iii.  derives from the exercise after 11 June 2003 of one or more rights described in paragraph b of section 20 that were acquired before 12 June 2003;

"international trade zone" means the zone that consists of the lots of the official cadastre of Mirabel that are designated by the Minister of Finance;

"qualified wages" incurred by a corporation in a taxation year, or by a partnership in a fiscal period, in respect of an eligible employee in the course of carrying on a recognized business, means the lesser of

(a)  the amount determined for the year or fiscal period pursuant to section 1029.8.36.0.39 in respect of the eligible employee in relation to the recognized business; and

(b)  any of the following amounts:

i.  where the valid certificate referred to in paragraph a of the definition of "recognized business" became effective or is deemed to have become effective, in accordance with the third paragraph, before 1 January 2001, the amount by which the amount of the wages incurred by the corporation or partnership in the year or fiscal period, but after 9 March 1999 and before 1 January 2011, in respect of the employee while the employee qualifies as an eligible employee of the corporation or partnership in relation to the recognized business, to the extent that that amount is paid, exceeds the aggregate of all amounts each of which is an amount of government assistance or non-government assistance attributable to such wages, that the corporation or partnership has received, is entitled to receive or may reasonably expect to receive on or before, in the case of the corporation, the corporation’s filing-due date for the year and, in the case of the partnership, the day that is six months after the end of the fiscal period,

ii.  where the valid certificate referred to in paragraph a of the definition of "recognized business" became effective or is deemed to have become effective, in accordance with the third paragraph, after 31 December 2000 and before 1 January 2004, the amount by which the amount of the wages incurred by the corporation or partnership in the year or fiscal period, but on or before the day of the tenth anniversary of the effective date of the certificate, in respect of the employee while the employee qualifies as an eligible employee of the corporation or partnership in relation to the recognized business, to the extent that that amount is paid, exceeds the aggregate of all amounts each of which is an amount of government assistance or non-government assistance attributable to such wages, that the corporation or partnership has received, is entitled to receive or may reasonably expect to receive on or before, in the case of the corporation, the corporation’s filing-due date for the year and, in the case of the partnership, the day that is six months after the end of the fiscal period, and

iii.  where the valid certificate referred to in paragraph a of the definition of "recognized business" became effective or is deemed to have become effective, in accordance with the third paragraph, after 31 December 2003, the amount by which the amount of the wages incurred by the corporation or partnership in the year or fiscal period, but before 1 January 2014, in respect of the employee while the employee qualifies as an eligible employee of the corporation or partnership in relation to the recognized business, to the extent that that amount is paid, exceeds the aggregate of all amounts each of which is an amount of government assistance or non-government assistance attributable to such wages, that the corporation or partnership has received, is entitled to receive or may reasonably expect to receive on or before, in the case of the corporation, the corporation’s filing-due date for the year and, in the case of the partnership, the day that is six months after the end of the fiscal period;

"recognized business" of a corporation for a taxation year, or of a partnership for a fiscal period, means a business carried on by the corporation in the year, or by the partnership in the fiscal period, in respect of which

(a)  a valid certificate for all or part of the year or fiscal period was issued to the corporation or partnership by Investissement Québec, certifying that the business activities carried on within the international trade zone relate to activities shown on the certificate; and

(b)  separate accounts are kept by the corporation or partnership, from the effective date of the certificate referred to in paragraph a, in relation to the business activities carried on within the international trade zone;

"wages" means the income computed under Chapters I and II of Title II of Book III.

Notwithstanding the definition of "eligible employee" in the first paragraph, an individual is deemed not to be an eligible employee of a corporation for a taxation year, or of a partnership for a fiscal period, if the individual, as the case may be,

(a)  is a specified shareholder of the corporation at any time in the period mentioned in that definition; or

(b)  is, at any time in the period mentioned in that definition, a member of the partnership whose share, for the fiscal period, of the partnership’s income or loss is equal to or greater than 10%, or is not dealing at arm’s length, at any time in that period, with such a member or with any member of a group of members of the partnership the total of whose shares, for the fiscal period, of the partnership’s income or loss is equal to or greater than 10%.

For the purposes of the first paragraph, where a corporation or partnership, in this paragraph referred to as the "transferee entity", carries on at a particular time in a taxation year or fiscal period a business in respect of which Investissement Québec issued a qualification certificate and the business, according to Investissement Québec, is the continuation of a recognized business or part of a recognized business carried on before that time by a corporation or partnership, in this paragraph referred to as the "transferor entity", the effective date of the qualification certificate issued to the transferee entity, in relation to the recognized business, is deemed to be the same as the effective date of the qualification certificate issued to the transferor entity, in relation to the recognized business or that part of the recognized business.

2000, c. 39, s. 176; 2001, c. 51, s. 155; 2003, c. 9, s. 244; 2004, c. 21, s. 340; 2005, c. 1, s. 239; 2005, c. 23, s. 177.