I-3 - Taxation Act

Section 1029.8.36.0.3.8 Disposition versions

2023-03-15

1029.8.36.0.3.8. In this division,

“eligible employee”, for a taxation year, means an individual in respect of whom the following conditions are met:

(a)  the individual’s name is specified in the qualification certificate issued by Investissement Québec, for the year and for the purposes of this division, to a corporation in respect of a property that is a multimedia title; and

(b)  throughout the period in the year during which the individual carries out eligible production work relating to that property, the individual is an employee who reports for work at an establishment of the employer situated in Québec;

“eligible production work”, for a taxation year, relating to a property that is a multimedia title, means the work specified in the qualification certificate issued by Investissement Québec, for the year and for the purposes of this division, to a corporation in respect of the property and that is carried out, in whole or in part, by an eligible employee of the corporation or, as part of a contract, by a person or partnership whose name is specified in the qualification certificate;

“multimedia title” of a corporation, for a taxation year, means a title in respect of which a qualification certificate is issued to the corporation for the year by Investissement Québec for the purposes of this division;

“qualified corporation” for a taxation year means a corporation that, in the year, has an establishment in Québec, carries on therein a qualified business and holds a qualification certificate issued for the year by Investissement Québec in respect of property that is a multimedia title for the purposes of this division, but does not include

(a)  a corporation that holds, for the year, a qualification certificate referred to in the first paragraph of section 1029.8.36.0.3.19;

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

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

(d)  (subparagraph repealed);

“qualified labour expenditure” of a corporation for a taxation year in respect of a property that is a multimedia title means, subject to the second paragraph,the aggregate of

(a)  the salaries or wages attributable to the property that are incurred and paid by the corporation, in respect of its eligible employees, for eligible production work relating to the property carried out in the year;

(b)  the aggregate of all amounts each of which is the portion of the consideration paid by the corporation, under the terms of a contract, for eligible production work relating to the property that was carried out on its behalf in the year to a person or partnership who or which carried out all or a part of the eligible production work and with whom or with which the corporation is not dealing at arm’s length at the time the contract is entered into, that may reasonably be attributed to the salaries or wages attributable to the property that the person or partnership incurred and paid in respect of the person’s or partnership’s eligible employees, or that could be so attributed if that person or partnership had such employees; and

(c)  the aggregate of all amounts each of which is one-half of the portion of the consideration paid by the corporation, under the terms of a contract, for eligible production work relating to the property, to a person or partnership with whom or which the corporation is dealing at arm’s length at the time the contract is entered into, that may reasonably be attributed to the eligible production work carried out in Québec, in the year and on its behalf, by the employees of that person or partnership, or that could be so attributed if that person or partnership had employees;

“salary or wages” means the income computed pursuant to Chapters I and II of Title II of Book III.

For the purposes of the definition of “eligible employee” in the first paragraph, the following rules apply:

(a)  where, during a period of a taxation year, an employee reports for work at an establishment of an employer situated in Québec and at an establishment of the employer situated outside Québec, the employee is deemed, for that period,

i.  unless subparagraph ii applies, to report for work only at the establishment situated in Québec, or

ii.  to report for work only at the establishment situated outside Québec if, during that period, the employee reports for work mainly at an establishment of the employer situated outside Québec; and

(b)  where, during a period of a taxation year, an employee is not required to report for work at an establishment of an employer and the employee’s wages in relation to that period are paid from such an establishment situated in Québec, the employee is deemed to report for work at that establishment if the duties performed by the employee during that period are performed mainly in Québec.

1999, c. 83, s. 198; 2000, c. 5, s. 259; 2000, c. 39, s. 151; 2001, c. 7, s. 147; 2001, c. 51, s. 123; 2001, c. 69, s. 12; 2004, c. 21, s. 320; 2005, c. 1, s. 236; 2005, c. 38, s. 247; 2006, c. 13, s. 118; 2007, c. 12, s. 161; 2011, c. 1, s. 69; 2013, c. 10, s. 112; 2015, c. 21, s. 429; 2019, c. 14, s. 330; 2021, c. 14, s. 134; 2023, c. 2, s. 35.

2021-06-02

1029.8.36.0.3.8. In this division,

“eligible employee” for a taxation year means an employee in respect of whom a qualification certificate is issued for the year by Investissement Québec, certifying that the employee is an eligible employee for the purposes of this division;

“eligible production work”, for a taxation year, relating to a property that is a multimedia title means the work specified in the qualification certificate issued for the year to a corporation in respect of an eligible employee or of a person or partnership that has carried out all or part of that work as part of a contract;

“multimedia title” of a corporation, for a taxation year, means a title in respect of which a qualification certificate is issued to the corporation for the year by Investissement Québec for the purposes of this division;

“qualified corporation” for a taxation year means a corporation that, in the year, has an establishment in Québec, carries on therein a qualified business and holds a qualification certificate issued for the year by Investissement Québec in respect of property that is a multimedia title for the purposes of this division, but does not include

(a)  a corporation that holds, for the year, a qualification certificate referred to in the first paragraph of section 1029.8.36.0.3.19;

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

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

(d)  (subparagraph repealed);

“qualified labour expenditure” of a corporation for a taxation year in respect of a property that is a multimedia title means, subject to the second paragraph,the aggregate of

(a)  the salaries or wages attributable to the property that are incurred and paid by the corporation, in respect of its eligible employees of an establishment situated in Québec, for eligible production work relating to the property carried out in the year;

(b)  the aggregate of all amounts each of which is the portion of the consideration paid by the corporation, under the terms of a contract, for eligible production work relating to the property that was carried out on its behalf in the year to a person or partnership who or which carried out all or a part of the eligible production work and with whom or with which the corporation is not dealing at arm’s length at the time the contract is entered into, that may reasonably be attributed to the salaries or wages attributable to the property that the person or partnership incurred and paid in respect of the person’s or partnership’s eligible employees of an establishment situated in Québec, or that could be so attributed if that person or partnership had such employees; and

(c)  the aggregate of all amounts each of which is one-half of the portion of the consideration paid by the corporation, under the terms of a contract, for eligible production work relating to the property, to a person or partnership with whom or with which the corporation is dealing at arm’s length at the time the contract is entered into, that may reasonably be attributed to the eligible production work carried out on the person’s or partnership’s behalf in the year by the employees of an establishment of that person or partnership situated in Québec, or that could be so attributed if that person or partnership had such employees;

“salary or wages” means the income computed pursuant to Chapters I and II of Title II of Book III.

For the purposes of the definition of “qualified labour expenditure” in the first paragraph, the following rules apply:

(a)  (subparagraph repealed);

(b)  the consideration referred to in paragraph b or c of that definition does not include an amount paid by a corporation to another corporation under the terms of a contract entered into before 21 March 2012, to the extent that the amount may reasonably be attributed to eligible production work in respect of a property that was carried out in a taxation year of that other corporation for which that other corporation holds a valid qualification certificate referred to in the first paragraph of section 1029.8.36.0.3.19 issued to it for that year; and

(c)  (subparagraph repealed);

(d)  (subparagraph repealed).

1999, c. 83, s. 198; 2000, c. 5, s. 259; 2000, c. 39, s. 151; 2001, c. 7, s. 147; 2001, c. 51, s. 123; 2001, c. 69, s. 12; 2004, c. 21, s. 320; 2005, c. 1, s. 236; 2005, c. 38, s. 247; 2006, c. 13, s. 118; 2007, c. 12, s. 161; 2011, c. 1, s. 69; 2013, c. 10, s. 112; 2015, c. 21, s. 429; 2019, c. 14, s. 330; 2021, c. 14, s. 134.

2019-06-19

1029.8.36.0.3.8. In this division,

“eligible employee” for a taxation year means an employee in respect of whom a qualification certificate is issued for the year by Investissement Québec, certifying that the employee is an eligible employee for the purposes of this division;

“eligible production work”, for a taxation year, relating to a property that is a multimedia title means the work specified in the qualification certificate issued for the year to a corporation in respect of an eligible employee or of a person or partnership that has carried out all or part of that work as part of a contract;

“multimedia title” of a corporation, for a taxation year, means a title in respect of which a qualification certificate is issued to the corporation for the year by Investissement Québec for the purposes of this division;

“qualified corporation” for a taxation year means a corporation that, in the year, has an establishment in Québec, carries on therein a qualified business and holds a qualification certificate issued for the year by Investissement Québec in respect of property that is a multimedia title for the purposes of this division, but does not include

(a)  a corporation that holds, for the year, a qualification certificate referred to in the first paragraph of section 1029.8.36.0.3.19;

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

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

(d)  (subparagraph repealed);

“qualified labour expenditure” of a corporation for a taxation year in respect of a property that is a multimedia title means, subject to the second paragraph,the aggregate of

(a)  the salaries or wages attributable to the property that are incurred and paid by the corporation, in respect of its eligible employees of an establishment situated in Québec, for eligible production work relating to the property carried out in the year;

(b)  the aggregate of all amounts each of which is the portion of the consideration paid by the corporation, under the terms of a contract, for eligible production work relating to the property that was carried out on its behalf in the year to a person or partnership who or which carried out all or a part of the eligible production work and with whom or with which the corporation is not dealing at arm’s length at the time the contract is entered into, that may reasonably be attributed to the salaries or wages attributable to the property that the person or partnership incurred and paid in respect of the person’s or partnership’s eligible employees of an establishment situated in Québec, or that could be so attributed if that person or partnership had such employees; and

(c)  the aggregate of all amounts each of which is one-half of the portion of the consideration paid by the corporation, under the terms of a contract, for eligible production work relating to the property, to a person or partnership with whom or with which the corporation is dealing at arm’s length at the time the contract is entered into, that may reasonably be attributed to the eligible production work carried out on the person’s or partnership’s behalf in the year by the employees of an establishment of that person or partnership situated in Québec, or that could be so attributed if that person or partnership had such employees;

“salary or wages” means the income computed pursuant to Chapters I and II of Title II of Book III.

For the purposes of the definition of “qualified labour expenditure” in the first paragraph, the following rules apply:

(a)  (subparagraph repealed);

(b)  the consideration referred to in paragraph b or c of that definition does not include an amount paid by a corporation to another corporation under the terms of a contract entered into before 21 March 2012, to the extent that the amount may reasonably be attributed to eligible production work in respect of a property that was carried out in a taxation year of that other corporation for which that other corporation holds a valid qualification certificate referred to in the first paragraph of section 1029.8.36.0.3.19 issued to it for that year; and

(c)  (subparagraph repealed);

(d)  a salary, wages or a consideration does not include remuneration based on the profits or revenues derived from the operation of a property that is a multimedia title.

For the purposes of subparagraph d of the second paragraph, the following is not considered remuneration based on the profits or revenues derived from the operation of a property that is a multimedia title:

(a)  remuneration that

i.  is determined in particular by reference to the type of use projected for the property, and

ii.  may not be reimbursed if the property is not used as first anticipated; and

(b)  remuneration that is not computed by reference to an amount of profit or revenue derived from the operation of the property.

1999, c. 83, s. 198; 2000, c. 5, s. 259; 2000, c. 39, s. 151; 2001, c. 7, s. 147; 2001, c. 51, s. 123; 2001, c. 69, s. 12; 2004, c. 21, s. 320; 2005, c. 1, s. 236; 2005, c. 38, s. 247; 2006, c. 13, s. 118; 2007, c. 12, s. 161; 2011, c. 1, s. 69; 2013, c. 10, s. 112; 2015, c. 21, s. 429; 2019, c. 14, s. 330.

2015-10-21

1029.8.36.0.3.8. In this division,

“eligible employee” for a taxation year means an employee in respect of whom a qualification certificate is issued for the year by Investissement Québec, certifying that the employee is an eligible employee for the purposes of this division;

“eligible production work”, for a taxation year, relating to a property that is a multimedia title means the work specified in the qualification certificate issued for the year to a corporation in respect of an eligible employee or of a person or partnership that has carried out all or part of that work as part of a contract;

“multimedia title” of a corporation, for a taxation year, means a title in respect of which a qualification certificate is issued to the corporation for the year by Investissement Québec for the purposes of this division;

“qualified corporation” for a taxation year means a corporation that, in the year, has an establishment in Québec, carries on therein a qualified business and holds a qualification certificate issued for the year by Investissement Québec in respect of property that is a multimedia title for the purposes of this division, but does not include

(a)  a corporation that holds, for the year, a qualification certificate referred to in the first paragraph of section 1029.8.36.0.3.19;

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

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

(d)  (subparagraph repealed);

“qualified labour expenditure” of a corporation for a taxation year in respect of a property that is a multimedia title means, subject to the second paragraph, the aggregate of the following amounts, to the extent that they are reasonable in the circumstances:

(a)  the salaries or wages attributable to the property that are incurred and paid by the corporation, in respect of its eligible employees of an establishment situated in Québec, for eligible production work relating to the property carried out in the year;

(b)  the aggregate of all amounts each of which is the portion of the consideration paid by the corporation, under the terms of a contract, for eligible production work relating to the property that was carried out on its behalf in the year to a person or partnership who or which carried out all or a part of the eligible production work and with whom or with which the corporation is not dealing at arm’s length at the time the contract is entered into, that may reasonably be attributed to the salaries or wages attributable to the property that the person or partnership incurred and paid in respect of the person’s or partnership’s eligible employees of an establishment situated in Québec, or that could be so attributed if that person or partnership had such employees; and

(c)  the aggregate of all amounts each of which is one-half of the portion of the consideration paid by the corporation, under the terms of a contract, for eligible production work relating to the property, to a person or partnership with whom or with which the corporation is dealing at arm’s length at the time the contract is entered into, that may reasonably be attributed to the eligible production work carried out on the person’s or partnership’s behalf in the year by the employees of an establishment of that person or partnership situated in Québec, or that could be so attributed if that person or partnership had such employees;

“salary or wages” means the income computed pursuant to Chapters I and II of Title II of Book III.

For the purposes of the definition of “qualified labour expenditure” in the first paragraph, the following rules apply:

(a)  (subparagraph repealed);

(b)  the consideration referred to in paragraph b or c of that definition does not include an amount paid by a corporation to another corporation under the terms of a contract entered into before 21 March 2012, to the extent that the amount may reasonably be attributed to eligible production work in respect of a property that was carried out in a taxation year of that other corporation for which that other corporation holds a valid qualification certificate referred to in the first paragraph of section 1029.8.36.0.3.19 issued to it for that year; and

(c)  (subparagraph repealed);

(d)  a salary, wages or a consideration does not include remuneration based on the profits or revenues derived from the operation of a property that is a multimedia title.

For the purposes of subparagraph d of the second paragraph, the following is not considered remuneration based on the profits or revenues derived from the operation of a property that is a multimedia title:

(a)  remuneration that

i.  is determined in particular by reference to the type of use projected for the property, and

ii.  may not be reimbursed if the property is not used as first anticipated; and

(b)  remuneration that is not computed by reference to an amount of profit or revenue derived from the operation of the property.

1999, c. 83, s. 198; 2000, c. 5, s. 259; 2000, c. 39, s. 151; 2001, c. 7, s. 147; 2001, c. 51, s. 123; 2001, c. 69, s. 12; 2004, c. 21, s. 320; 2005, c. 1, s. 236; 2005, c. 38, s. 247; 2006, c. 13, s. 118; 2007, c. 12, s. 161; 2011, c. 1, s. 69; 2013, c. 10, s. 112; 2015, c. 21, s. 429.

2013-06-05

1029.8.36.0.3.8. In this division,

“eligible employee” for a taxation year means an employee in respect of whom a qualification certificate is issued for the year by Investissement Québec, certifying that the employee is an eligible employee for the purposes of this division;

“eligible production work”, for a taxation year, relating to a property that is a multimedia title means the work specified in the qualification certificate issued for the year to a corporation in respect of an eligible employee or of a person or partnership that has carried out all or part of that work as part of a contract;

“multimedia title” of a corporation, for a taxation year, means a title in respect of which a qualification certificate is issued to the corporation for the year by Investissement Québec for the purposes of this division;

“qualified corporation” for a taxation year means a corporation that, in the year, has an establishment in Québec, carries on therein a qualified business and holds a qualification certificate issued for the year by Investissement Québec in respect of property that is a multimedia title for the purposes of this division, but does not include

(a)  a corporation that holds, for the year, a qualification certificate referred to in the first paragraph of section 1029.8.36.0.3.19;

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

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

(d)  (subparagraph repealed);

“qualified labour expenditure” of a corporation for a taxation year in respect of a property that is a multimedia title means, subject to the second paragraph, the aggregate of the following amounts, to the extent that they are reasonable in the circumstances:

(a)  the salaries or wages attributable to the property that are incurred and paid by the corporation, in respect of its eligible employees of an establishment situated in Québec, for eligible production work relating to the property carried out in the year;

(b)  the aggregate of all amounts each of which is the portion of the consideration paid by the corporation, under the terms of a contract, for eligible production work relating to the property that was carried out on its behalf in the year to a person or partnership who or which carried out all or a part of the eligible production work and with whom or with which the corporation is not dealing at arm’s length at the time the contract is entered into, that may reasonably be attributed to the salaries or wages attributable to the property that the person or partnership incurred and paid in respect of the person’s or partnership’s eligible employees of an establishment situated in Québec, or that could be so attributed if that person or partnership had such employees; and

(c)  the aggregate of all amounts each of which is one-half of the portion of the consideration paid by the corporation, under the terms of a contract, for eligible production work relating to the property, to a person or partnership with whom or with which the corporation is dealing at arm’s length at the time the contract is entered into, that may reasonably be attributed to the eligible production work carried out on the person’s or partnership’s behalf in the year by the employees of an establishment of that person or partnership situated in Québec, or that could be so attributed if that person or partnership had such employees;

“salary or wages” means the income computed pursuant to Chapters I and II of Title II of Book III.

For the purposes of the definition of “qualified labour expenditure” in the first paragraph, the following rules apply:

(a)  (subparagraph repealed);

(b)  the consideration referred to in paragraph b or c of that definition does not include an amount paid by a corporation to another corporation under the terms of a contract entered into before 21 March 2012, to the extent that the amount may reasonably be attributed to eligible production work in respect of a property that was carried out in a taxation year of that other corporation for which that other corporation holds a valid qualification certificate referred to in the first paragraph of section 1029.8.36.0.3.19 issued to it for that year; and

(c)  (subparagraph repealed);

(d)  a salary, wages or a consideration does not include remuneration based on the profits or revenues derived from the operation of a property.

For the purposes of subparagraph d of the second paragraph, remuneration based on the profits and revenues derived from the operation of a property that is a multimedia title does not include remuneration that

(a)  is determined in particular on the basis of the type of use projected for the property; and

(b)  may not be reimbursed if the property is not used as first anticipated.

1999, c. 83, s. 198; 2000, c. 5, s. 259; 2000, c. 39, s. 151; 2001, c. 7, s. 147; 2001, c. 51, s. 123; 2001, c. 69, s. 12; 2004, c. 21, s. 320; 2005, c. 1, s. 236; 2005, c. 38, s. 247; 2006, c. 13, s. 118; 2007, c. 12, s. 161; 2011, c. 1, s. 69; 2013, c. 10, s. 112.

2011-02-17

1029.8.36.0.3.8. In this division,

“eligible employee” for a taxation year means an employee in respect of whom a qualification certificate is issued for the year by Investissement Québec, certifying that the employee is an eligible employee for the purposes of this division;

“eligible production work”, for a taxation year, relating to a property that is a multimedia title means the work specified in the qualification certificate issued for the year to a corporation in respect of an eligible employee or of a person or partnership that has carried out all or part of that work as part of a contract;

“multimedia title” of a corporation, for a taxation year, means a title in respect of which a qualification certificate is issued to the corporation for the year by Investissement Québec for the purposes of this division;

“qualified corporation” for a taxation year means a corporation that, in the year, has an establishment in Québec, carries on therein a qualified business and holds a qualification certificate issued for the year by Investissement Québec in respect of property that is a multimedia title for the purposes of this division, but does not include

(a)  a corporation that holds, for the year, a qualification certificate referred to in the first paragraph of section 1029.8.36.0.3.19;

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

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

(d)  (paragraph repealed);

“qualified labour expenditure” of a corporation for a taxation year in respect of a property that is a multimedia title means, subject to the second paragraph, the aggregate of the following amounts, to the extent that they are reasonable in the circumstances:

(a)  the salaries or wages attributable to the property that are incurred and paid by the corporation, in respect of its eligible employees of an establishment situated in Québec, for eligible production work relating to the property carried out in the year;

(b)  the aggregate of all amounts each of which is the portion of the consideration paid by the corporation, under the terms of a contract, for eligible production work relating to the property that was carried out on its behalf in the year to a person or partnership who or which carried out all or a part of the eligible production work and with whom or with which the corporation is not dealing at arm’s length at the time the contract is entered into, that may reasonably be attributed to the salaries or wages attributable to the property that the person or partnership incurred and paid in respect of the person’s or partnership’s eligible employees of an establishment situated in Québec, or that could be so attributed if that person or partnership had such employees; and

(c)  the aggregate of all amounts each of which is one-half of the portion of the consideration paid by the corporation, under the terms of a contract, for eligible production work relating to the property, to a person or partnership with whom or with which the corporation is dealing at arm’s length at the time the contract is entered into, that may reasonably be attributed to the eligible production work carried out on the person’s or partnership’s behalf in the year by the employees of an establishment of that person or partnership situated in Québec, or that could be so attributed if that person or partnership had such employees;

“salary or wages” means the income computed pursuant to Chapters I and II of Title II of Book III.

For the purposes of the definition of “qualified labour expenditure” in the first paragraph, the following rules apply:

(a)  (subparagraph repealed);

(b)  the consideration referred to in paragraphs b and c of that definition does not include an amount paid by a corporation to another corporation, to the extent that the amount may reasonably be attributed to eligible production work in respect of a property that was carried out in a taxation year of that other corporation for which that other corporation holds a valid qualification certificate referred to in the first paragraph of section 1029.8.36.0.3.19 issued to it by Investissement Québec for that year; and

(c)  (subparagraph repealed);

(d)  a salary, wages or a consideration does not include remuneration based on the profits or revenues derived from the operation of a property.

For the purposes of subparagraph d of the second paragraph, remuneration based on the profits and revenues derived from the operation of a property that is a multimedia title does not include remuneration that

(a)  is determined in particular on the basis of the type of use projected for the property; and

(b)  may not be reimbursed if the property is not used as first anticipated.

1999, c. 83, s. 198; 2000, c. 5, s. 259; 2000, c. 39, s. 151; 2001, c. 7, s. 147; 2001, c. 51, s. 123; 2001, c. 69, s. 12; 2004, c. 21, s. 320; 2005, c. 1, s. 236; 2005, c. 38, s. 247; 2006, c. 13, s. 118; 2007, c. 12, s. 161; 2011, c. 1, s. 69.

2007-11-07

1029.8.36.0.3.8. In this division,

“eligible employee” for a taxation year means an employee in respect of whom a qualification certificate is issued for the year by Investissement Québec, certifying that the employee is an eligible employee for the purposes of this division;

“eligible production work”, for a taxation year, relating to a property that is a multimedia title means the work specified in the qualification certificate issued for the year to a corporation in respect of an eligible employee or of a person or partnership that has carried out all or part of that work as part of a contract;

“multimedia title” of a corporation, for a taxation year, means an organized set of numerical information in respect of which a qualification certificate is issued to the corporation for the year by Investissement Québec for the purposes of this division;

“qualified corporation” for a taxation year means a corporation that, in the year, has an establishment in Québec, carries on therein a qualified business and holds a qualification certificate issued for the year by Investissement Québec in respect of property that is a multimedia title for the purposes of this division, but does not include

(a)  a corporation that holds, for the year, a qualification certificate referred to in the first paragraph of section 1029.8.36.0.3.19;

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

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

(d)  (paragraph repealed);

“qualified labour expenditure” of a corporation for a taxation year in respect of a property that is a multimedia title means, subject to the second paragraph, the aggregate of the following amounts, to the extent that they are reasonable in the circumstances:

(a)  the salaries or wages attributable to the property that are incurred and paid by the corporation, in respect of its eligible employees of an establishment situated in Québec, for eligible production work relating to the property carried out in the year;

(b)  the aggregate of all amounts each of which is the portion of the consideration paid by the corporation, under the terms of a contract, for eligible production work relating to the property that was carried out on its behalf in the year to a person or partnership who or which carried out all or a part of the eligible production work and with whom or with which the corporation is not dealing at arm’s length at the time the contract is entered into, that may reasonably be attributed to the salaries or wages attributable to the property that the person or partnership incurred and paid in respect of the person’s or partnership’s eligible employees of an establishment situated in Québec, or that could be so attributed if that person or partnership had such employees; and

(c)  the aggregate of all amounts each of which is one-half of the portion of the consideration paid by the corporation, under the terms of a contract, for eligible production work relating to the property, to a person or partnership with whom or with which the corporation is dealing at arm’s length at the time the contract is entered into, that may reasonably be attributed to the eligible production work carried out on the person’s or partnership’s behalf in the year by the employees of an establishment of that person or partnership situated in Québec, or that could be so attributed if that person or partnership had such employees;

“salary or wages” means the income computed pursuant to Chapters I and II of Title II of Book III.

For the purposes of the definition of “qualified labour expenditure” in the first paragraph, the following rules apply:

(a)  (subparagraph repealed);

(b)  the consideration referred to in paragraphs b and c of that definition does not include an amount paid by a corporation to another corporation, to the extent that the amount may reasonably be attributed to eligible production work in respect of a property that was carried out in a taxation year of that other corporation for which that other corporation holds a valid qualification certificate referred to in the first paragraph of section 1029.8.36.0.3.19 issued to it by Investissement Québec for that year; and

(c)  (subparagraph repealed);

(d)  a salary, wages or a consideration does not include remuneration based on the profits or revenues derived from the operation of a property.

For the purposes of subparagraph d of the second paragraph, remuneration based on the profits and revenues derived from the operation of a property that is a multimedia title does not include remuneration that

(a)  is determined in particular on the basis of the type of use projected for the property; and

(b)  may not be reimbursed if the property is not used as first anticipated.

1999, c. 83, s. 198; 2000, c. 5, s. 259; 2000, c. 39, s. 151; 2001, c. 7, s. 147; 2001, c. 51, s. 123; 2001, c. 69, s. 12; 2004, c. 21, s. 320; 2005, c. 1, s. 236; 2005, c. 38, s. 247; 2006, c. 13, s. 118; 2007, c. 12, s. 161.

2006-06-13

1029.8.36.0.3.8. In this division,

“eligible employee” for a taxation year means an employee in respect of whom a qualification certificate is issued for the year by Investissement Québec, certifying that the employee is an eligible employee for the purposes of this division;

“eligible production work” relating to a property that is a multimedia title means the work specified in the qualification certificate issued to a corporation in respect of an eligible employee or a person considered to be such an employee for the purposes of this division in the case where a portion of the consideration referred to in paragraph b or c of the definition of “qualified labour expenditure” is paid to a person or partnership that has no such employees;

“qualified labour expenditure” of a corporation for a taxation year in respect of a property that is a multimedia title means, subject to the second paragraph, the aggregate of the following amounts, to the extent that they are reasonable in the circumstances:

(a)  the salaries or wages attributable to the property that are incurred and paid by the corporation, in respect of its eligible employees of an establishment situated in Québec, for eligible production work relating to the property carried out in the year;

(b)  the aggregate of all amounts each of which is the portion of the consideration paid by the corporation, under the terms of a contract, for eligible production work relating to the property that was carried out on its behalf in the year to a person or partnership who or which carried out all or a part of the eligible production work and with whom or with which the corporation is not dealing at arm’s length at the time the contract is entered into, that may reasonably be attributed to the salaries or wages attributable to the property that the person or partnership incurred and paid in respect of the person’s or partnership’s eligible employees of an establishment situated in Québec, or that could be so attributed if that person or partnership had such employees; and

(c)  the aggregate of all amounts each of which is one-half of the portion of the consideration paid by the corporation, under the terms of a contract, for eligible production work relating to the property, to a person or partnership with whom or with which the corporation is dealing at arm’s length at the time the contract is entered into, that may reasonably be attributed to the eligible production work carried out on the person’s or partnership’s behalf in the year by the eligible employees of an establishment of that person or partnership situated in Québec, or that could be so attributed if that person or partnership had such employees;

“multimedia title” of a corporation means an organized set of numerical information in respect of which Investissement Québec certifies, on the favourable advance ruling given or the certificate issued to the corporation in respect of the title, that the title qualifies for the purposes of this division;

“qualified corporation” for a taxation year means a corporation that, in the year, has an establishment in Québec, carries on therein a qualified business and holds a favourable advance ruling given or a certificate issued by Investissement Québec in respect of property that is a multimedia title for the purposes of this division, but does not include

(a)  a corporation that holds, for the year, a final certificate referred to in the first paragraph of section 1029.8.36.0.3.19;

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

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

(d)  (paragraph repealed);

“salary or wages” means the income computed pursuant to Chapters I and II of Title II of Book III.

For the purposes of paragraphs b and c of the definition of “qualified labour expenditure” in the first paragraph, the following rules apply:

(a)  (subparagraph repealed);

(b)  the consideration referred to in those paragraphs does not include an amount paid by a corporation to another corporation, to the extent that the amount may reasonably be attributed to eligible production work in respect of a property that was carried out in a taxation year of that other corporation for which that other corporation holds a valid final certificate referred to in the first paragraph of section 1029.8.36.0.3.19 issued to it by Investissement Québec for that year; and

(c)  in the case where a portion of the consideration referred to in those paragraphs is paid to a person or partnership that has no eligible employees, a person is considered to be such an employee for the purposes of those paragraphs if a qualification certificate is issued in respect of the person for the year by Investissement Québec, for the purposes of this division.

1999, c. 83, s. 198; 2000, c. 5, s. 259; 2000, c. 39, s. 151; 2001, c. 7, s. 147; 2001, c. 51, s. 123; 2001, c. 69, s. 12; 2004, c. 21, s. 320; 2005, c. 1, s. 236; 2005, c. 38, s. 247; 2006, c. 13, s. 118.

2006-03-01

1029.8.36.0.3.8. In this division,

"eligible employee" for a taxation year means an employee in respect of whom a qualification certificate is issued for the year by Investissement Québec, certifying that the employee is an eligible employee for the purposes of this division;

"eligible production work" relating to a property that is a multimedia title means the work specified in the qualification certificate issued to a corporation in respect of an eligible employee or a person considered to be such an employee for the purposes of this division in the case where a portion of the consideration referred to in paragraph b or c of the definition of "labour expenditure" is paid to a person or partnership that has no such employees;

"labour expenditure" of a corporation for a taxation year in respect of a property that is a multimedia title means, subject to the second paragraph, the aggregate of the following amounts, to the extent that they are reasonable in the circumstances:

(a)  the salaries or wages attributable to the property that are incurred and paid by the corporation, in respect of its eligible employees of an establishment situated in Québec, for eligible production work relating to the property carried out in the year;

(b)  the aggregate of all amounts each of which is the portion of the consideration paid by the corporation, under the terms of a contract, for eligible production work relating to the property that was carried out on its behalf in the year to a person or partnership who or which carried out all or a part of the eligible production work and with whom or with which the corporation is not dealing at arm’s length at the time the contract is entered into, that may reasonably be attributed to the salaries or wages attributable to the property that the person or partnership incurred and paid in respect of the person’s or partnership’s eligible employees of an establishment situated in Québec, or that could be so attributed if that person or partnership had such employees; and

(c)  the aggregate of all amounts each of which is one-half of the portion of the consideration paid by the corporation, under the terms of a contract, for eligible production work relating to the property, to a person or partnership with whom or with which the corporation is dealing at arm’s length at the time the contract is entered into, that may reasonably be attributed to the eligible production work carried out on the person’s or partnership’s behalf in the year by the eligible employees of an establishment of that person or partnership situated in Québec, or that could be so attributed if that person or partnership had such employees;

"multimedia title" of a corporation means an organized set of numerical information in respect of which Investissement Québec certifies, on the favourable advance ruling given or the certificate issued to the corporation in respect of the title, that the title qualifies for the purposes of this division;

"qualified corporation" for a taxation year means a corporation that, in the year, has an establishment in Québec, carries on therein a qualified business and holds a favourable advance ruling given or a certificate issued by Investissement Québec in respect of property that is a multimedia title for the purposes of this division, but does not include

(a)  a corporation that holds, for the year, a final certificate referred to in the first paragraph of section 1029.8.36.0.3.19;

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

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

(d)  (paragraph repealed);

"qualified labour expenditure" of a corporation for a taxation year in respect of a property that is a multimedia title means the amount by which

(a)  the labour expenditure of the corporation for the year in respect of the property; exceeds

(b)  the amount of any government assistance and non-government assistance attributable to the amount of salaries or wages incurred or the portion of the consideration paid, as the case may be, of a labour expenditure of the corporation for the year, in respect of the property, that the corporation has received, is entitled to receive or may reasonably expect to receive on or before the corporation’s filing-due date for the year;

"salary or wages" means the income computed pursuant to Chapters I and II of Title II of Book III.

For the purposes of paragraphs b and c of the definition of "labour expenditure" in the first paragraph, the following rules apply:

(a)  (paragraph repealed);

(b)  the consideration referred to in those paragraphs does not include an amount paid by a corporation to another corporation, to the extent that the amount may reasonably be attributed to eligible production work in respect of a property that was carried out in a taxation year of that other corporation for which that other corporation holds a valid final certificate referred to in the first paragraph of section 1029.8.36.0.3.19 issued to it by Investissement Québec for that year; and

(c)  in the case where a portion of the consideration referred to in those paragraphs is paid to a person or partnership that has no eligible employees, a person is considered to be such an employee for the purposes of those paragraphs if a qualification certificate is issued in respect of the person for the year by Investissement Québec, for the purposes of this division.

1999, c. 83, s. 198; 2000, c. 5, s. 259; 2000, c. 39, s. 151; 2001, c. 7, s. 147; 2001, c. 51, s. 123; 2001, c. 69, s. 12; 2004, c. 21, s. 320; 2005, c. 1, s. 236; 2005, c. 38, s. 247.