I-3 - Taxation Act

Section 1029.8.36.0.72 Disposition versions

2021-06-04

1029.8.36.0.72. (Repealed).

2000, c. 39, s. 176; 2001, c. 51, s. 168; 2003, c. 9, s. 268; 2004, c. 21, s. 344; 2005, c. 23, s. 182; 2007, c. 12, s. 181; 2021, c. 18, s. 121.

2007-11-07

1029.8.36.0.72. In this division,

“acquisition costs” incurred by a corporation in a taxation year or by a partnership in a fiscal period, in respect of qualified property in the course of carrying on a recognized business, means the aggregate of the costs incurred by the corporation or the partnership in the year or the fiscal period, but after 9 March 1999, to acquire the qualified property and that are included in the capital cost of the property, other than the costs so included under section 180 or 182;

“excluded corporation” has the meaning assigned by the first paragraph of section 1029.8.36.0.38;

“international trade zone” has the meaning assigned by the first paragraph of section 1029.8.36.0.38;

“qualified property” of a corporation or a partnership that carries on a recognized business in a taxation year or a fiscal period, as the case may be, means

(a)  in the case of property acquired by the corporation or the partnership the valid certificate of which issued thereto in respect of the recognized business became effective or is deemed to have become effective, in accordance with the third paragraph, before 1 January 2001, property

i.  that is depreciable property, other than incorporeal property,

ii.  that is acquired, by the corporation or the partnership, before 1 January 2011, under a contract in writing entered into after 9 March 1999, and within a reasonable time after the effective date of the certificate referred to in subparagraph v,

iii.  that, before being acquired by the corporation or the partnership, has not been used for any purpose whatever nor acquired for use or lease for any purpose whatever,

iv.  that the corporation or the partnership, within a reasonable time after its acquisition, begins to use exclusively in the international trade zone, and exclusively or almost exclusively to earn income from the activities shown on the certificate issued to the corporation or the partnership in respect of the recognized business, and carried on in that zone by the corporation or the partnership, and

v.  in respect of which a certificate that is valid for the year or the fiscal period has been issued to the corporation or the partnership by Investissement Québec;

(a.1)  in the case of property acquired by the corporation or the partnership the valid certificate of which issued thereto in respect of the recognized business became effective after 31 December 2000 and before 1 January 2004, property

i.  that meets the conditions set out in subparagraphs i and iii to v of paragraph a, and

ii.  that is acquired by the corporation or the partnership under a contract in writing entered into on or before the day that is ten years after the effective date of that certificate, within a reasonable time after the effective date of the certificate described in subparagraph v of paragraph a and issued in respect of the property;

(a.2)  in the case of property acquired by the corporation or the partnership the valid certificate of which issued thereto in respect of the recognized business became effective after 31 December 2003, property

i.  that meets the conditions set out in subparagraphs i and iii to v of paragraph a, and

ii.  that is acquired by the corporation or the partnership under a contract in writing entered into before 1 January 2014, within a reasonable time after the effective date of the certificate described in subparagraph v of paragraph a and issued in respect of the property;

(b)  in the case of property leased by the corporation or the partnership the valid certificate of which issued thereto in respect of the recognized business became effective or is deemed to have become effective, in accordance with the third paragraph, before 1 January 2001, property

i.  that is leased, by the corporation or the partnership, under a contract in writing entered into after 9 March 1999 and before 1 January 2011,

ii.  that, before being leased by the corporation or the partnership, has not been used for any purpose whatever and was not acquired for use or lease for any purpose other than for lease to the corporation or the partnership,

iii.  that the corporation or the partnership, within a reasonable time after the date on which the contract referred to in subparagraph i is entered into, begins to use exclusively in the international trade zone, and exclusively or almost exclusively to earn income from the activities shown on the certificate issued to the corporation or the partnership in respect of the recognized business, and carried on in that zone by the corporation or the partnership, and

iv.  in respect of which a certificate that is valid for all or part of the year or fiscal period has been issued to the corporation or the partnership by Investissement Québec;

(c)  in the case of property leased by the corporation or the partnership the valid certificate of which issued thereto in respect of the 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, property

i.  that is leased by the corporation or the partnership under a contract in writing entered into on or before the day that is ten years after the effective date of that certificate,

ii.  that, before being leased by the corporation or the partnership, has not been used for any purpose whatever and was not acquired for use or lease for any purpose other than for lease to the corporation or the partnership,

iii.  that the corporation or the partnership, within a reasonable time after the date on which the contract referred to in subparagraph i is entered into, begins to use exclusively in the international trade zone, and exclusively or almost exclusively to earn income from the activities shown on the certificate issued to the corporation or the partnership in respect of the recognized business, and carried on in that zone by the corporation or the partnership, and

iv.  in respect of which a certificate that is valid for all or part of the year or fiscal period has been issued to the corporation or the partnership by Investissement Québec; or

(d)  in the case of property leased by the corporation or the partnership the valid certificate of which issued thereto in respect of the recognized business became effective or is deemed to have become effective, in accordance with the third paragraph, after 31 December 2003, property

i.  that is leased by the corporation or the partnership under a contract in writing entered into before 1 January 2014,

ii.  that, before being leased by the corporation or the partnership, has not been used for any purpose whatever and was not acquired for use or lease for any purpose other than for lease to the corporation or the partnership,

iii.  that the corporation or the partnership, within a reasonable time after the date on which the contract referred to in subparagraph i is entered into, begins to use exclusively in the international trade zone, and exclusively or almost exclusively to earn income from the activities shown on the certificate issued to the corporation or the partnership in respect of the recognized business, and carried on in that zone by the corporation or the partnership, and

iv.  in respect of which a certificate that is valid for all or part of the year or fiscal period has been issued to the corporation or the partnership by Investissement Québec;

“qualifying lease period” applicable to qualified property leased by a corporation or a partnership means the lease period of the property shown on the certificate issued to the corporation or the partnership in respect of the property;

“recognized business” has the meaning assigned by the first paragraph of section 1029.8.36.0.38 and by section 1029.8.36.0.38.1;

“rental expenses” paid by a corporation in a taxation year or by a partnership in a fiscal period, in respect of qualified property in the course of carrying on a recognized business, means the aggregate of the expenses paid by the corporation or partnership in the year or fiscal period, but after 9 March 1999, for the lease of the qualified property to the extent that such expenses are deductible in computing the income of the corporation or partnership under this Part and may reasonably be considered to relate to the lease of the qualified property for any period of the year or fiscal period, within the qualifying lease period applicable to the property, during which the property is used by the corporation or partnership exclusively in the international trade zone, and exclusively or almost exclusively to earn income from the activities shown on the certificate issued to the corporation or the partnership in respect of the recognized business, and carried on in that zone by the corporation or partnership.

For the purposes of subparagraph iv of paragraph a and subparagraph iii of any of paragraphs b to d of the definition of “qualified property” in the first paragraph, where, at any time after 13 March 2000, a corporation or a partnership has acquired or leased a property that it begins to use, within a reasonable time after its acquisition or after the date on which the contract of lease referred to in subparagraph i of those paragraphs b to d is entered into, exclusively or almost exclusively to earn income from the business activities, carried on in Québec but outside the international trade zone, to which paragraph a of section 1029.8.36.0.38.1 applies, and the property would be a qualified property if the definition of that expression were read without subparagraph iv of paragraph a thereof or without subparagraph iii of paragraphs b to d thereof, as the case may be, the corporation or the partnership is deemed, from that time and throughout the period during which the property is being used exclusively or almost exclusively in the course of the business activities, to use the property exclusively in the international trade zone and exclusively or almost exclusively to earn income from the activities shown on the certificate issued to the corporation or the partnership in respect of the recognized business and carried on within the international trade zone by the corporation or the partnership.

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. 168; 2003, c. 9, s. 268; 2004, c. 21, s. 344; 2005, c. 23, s. 182; 2007, c. 12, s. 181.

2006-03-01

1029.8.36.0.72. In this division,

“acquisition costs” incurred by a corporation in a taxation year or by a partnership in a fiscal period, in respect of qualified property in the course of carrying on a recognized business, means the aggregate of the costs incurred by the corporation or the partnership in the year or the fiscal period, but after 9 March 1999, to acquire the qualified property and that are included in the capital cost of the property;

“excluded corporation” has the meaning assigned by the first paragraph of section 1029.8.36.0.38;

“international trade zone” has the meaning assigned by the first paragraph of section 1029.8.36.0.38;

“qualified property” of a corporation or a partnership that carries on a recognized business in a taxation year or a fiscal period, as the case may be, means

(a)  in the case of property acquired by the corporation or the partnership the valid certificate of which issued thereto in respect of the recognized business became effective or is deemed to have become effective, in accordance with the third paragraph, before 1 January 2001, property

i.  that is depreciable property, other than incorporeal property,

ii.  that is acquired, by the corporation or the partnership, before 1 January 2011, under a contract in writing entered into after 9 March 1999, and within a reasonable time after the effective date of the certificate referred to in subparagraph v,

iii.  that, before being acquired by the corporation or the partnership, has not been used for any purpose whatever nor acquired for use or lease for any purpose whatever,

iv.  that the corporation or the partnership, within a reasonable time after its acquisition, begins to use exclusively in the international trade zone, and exclusively or almost exclusively to earn income from the activities shown on the certificate issued to the corporation or the partnership in respect of the recognized business, and carried on in that zone by the corporation or the partnership, and

v.  in respect of which a certificate that is valid for the year or the fiscal period has been issued to the corporation or the partnership by Investissement Québec; or

(a.1)  in the case of property acquired by the corporation or the partnership the valid certificate of which issued thereto in respect of the recognized business became effective after 31 December 2000 and before 1 January 2004, property

i.  that meets the conditions set out in subparagraphs i and iii to v of paragraph a, and

ii.  that is acquired by the corporation or the partnership under a contract in writing entered into on or before the day that is ten years after the effective date of that certificate, within a reasonable time after the effective date of the certificate described in subparagraph v of paragraph a and issued in respect of the property;

(a.2)  in the case of property acquired by the corporation or the partnership the valid certificate of which issued thereto in respect of the recognized business became effective after 31 December 2003, property

i.  that meets the conditions set out in subparagraphs i and iii to v of paragraph a, and

ii.  that is acquired by the corporation or the partnership under a contract in writing entered into before 1 January 2014, within a reasonable time after the effective date of the certificate described in subparagraph v of paragraph a and issued in respect of the property;

(b)  in the case of property leased by the corporation or the partnership the valid certificate of which issued thereto in respect of the recognized business became effective or is deemed to have become effective, in accordance with the third paragraph, before 1 January 2001, property

i.  that is leased, by the corporation or the partnership, under a contract in writing entered into after 9 March 1999 and before 1 January 2011,

ii.  that, before being leased by the corporation or the partnership, has not been used for any purpose whatever and was not acquired for use or lease for any purpose other than for lease to the corporation or the partnership,

iii.  that the corporation or the partnership, within a reasonable time after the date on which the contract referred to in subparagraph i is entered into, begins to use exclusively in the international trade zone, and exclusively or almost exclusively to earn income from the activities shown on the certificate issued to the corporation or the partnership in respect of the recognized business, and carried on in that zone by the corporation or the partnership, and

iv.  in respect of which a certificate that is valid for all or part of the year or fiscal period has been issued to the corporation or the partnership by Investissement Québec;

(c)  in the case of property leased by the corporation or the partnership the valid certificate of which issued thereto in respect of the 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, property

i.  that is leased by the corporation or the partnership under a contract in writing entered into on or before the day that is ten years after the effective date of that certificate,

ii.  that, before being leased by the corporation or the partnership, has not been used for any purpose whatever and was not acquired for use or lease for any purpose other than for lease to the corporation or the partnership,

iii.  that the corporation or the partnership, within a reasonable time after the date on which the contract referred to in subparagraph i is entered into, begins to use exclusively in the international trade zone, and exclusively or almost exclusively to earn income from the activities shown on the certificate issued to the corporation or the partnership in respect of the recognized business, and carried on in that zone by the corporation or the partnership, and

iv.  in respect of which a certificate that is valid for all or part of the year or fiscal period has been issued to the corporation or the partnership by Investissement Québec; or

(d)  in the case of property leased by the corporation or the partnership the valid certificate of which issued thereto in respect of the recognized business became effective or is deemed to have become effective, in accordance with the third paragraph, after 31 December 2003, property

i.  that is leased by the corporation or the partnership under a contract in writing entered into before 1 January 2014,

ii.  that, before being leased by the corporation or the partnership, has not been used for any purpose whatever and was not acquired for use or lease for any purpose other than for lease to the corporation or the partnership,

iii.  that the corporation or the partnership, within a reasonable time after the date on which the contract referred to in subparagraph i is entered into, begins to use exclusively in the international trade zone, and exclusively or almost exclusively to earn income from the activities shown on the certificate issued to the corporation or the partnership in respect of the recognized business, and carried on in that zone by the corporation or the partnership, and

iv.  in respect of which a certificate that is valid for all or part of the year or fiscal period has been issued to the corporation or the partnership by Investissement Québec;

“qualifying lease period” applicable to qualified property leased by a corporation or a partnership means the lease period of the property shown on the certificate issued to the corporation or the partnership in respect of the property;

“recognized business” has the meaning assigned by the first paragraph of section 1029.8.36.0.38 and by section 1029.8.36.0.38.1;

“rental expenses” paid by a corporation in a taxation year or by a partnership in a fiscal period, in respect of qualified property in the course of carrying on a recognized business, means the aggregate of the expenses paid by the corporation or partnership in the year or fiscal period, but after 9 March 1999, for the lease of the qualified property to the extent that such expenses are deductible in computing the income of the corporation or partnership under this Part and may reasonably be considered to relate to the lease of the qualified property for any period of the year or fiscal period, within the qualifying lease period applicable to the property, during which the property is used by the corporation or partnership exclusively in the international trade zone, and exclusively or almost exclusively to earn income from the activities shown on the certificate issued to the corporation or the partnership in respect of the recognized business, and carried on in that zone by the corporation or partnership.

For the purposes of subparagraph iv of paragraph a and subparagraph iii of any of paragraphs b to d of the definition of “qualified property” in the first paragraph, where, at any time after 13 March 2000, a corporation or a partnership has acquired or leased a property that it begins to use, within a reasonable time after its acquisition or after the date on which the contract of lease referred to in subparagraph i of those paragraphs b to d is entered into, exclusively or almost exclusively to earn income from the business activities, carried on in Québec but outside the international trade zone, to which paragraph a of section 1029.8.36.0.38.1 applies, and the property would be a qualified property if the definition of that expression were read without subparagraph iv of paragraph a thereof or without subparagraph iii of paragraphs b to d thereof, as the case may be, the corporation or the partnership is deemed, from that time and throughout the period during which the property is being used exclusively or almost exclusively in the course of the business activities, to use the property exclusively in the international trade zone and exclusively or almost exclusively to earn income from the activities shown on the certificate issued to the corporation or the partnership in respect of the recognized business and carried on within the international trade zone by the corporation or the partnership.

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. 168; 2003, c. 9, s. 268; 2004, c. 21, s. 344; 2005, c. 23, s. 182.