I-3 - Taxation Act

Section 1029.8.36.55 Disposition versions

2021-12-10

1029.8.36.55. A qualified corporation that, in a taxation year, constructs in Québec an eligible vessel and encloses with the fiscal return it is required to file for the year under section 1000 a copy of the qualification certificate issued to it by the Minister of Economy and Innovation in respect of the eligible vessel and the prescribed form containing prescribed information, is deemed, subject to the fourth paragraph, to have paid to the Minister on the corporation’s balance-due day for that year, on account of its tax payable for that year under this Part, the lesser of

(a)  an amount equal, in respect of the eligible vessel

i.  where the qualification certificate attests that the vessel is a prototype vessel, to the aggregate of

(1)  40% of the portion of the qualified construction expenditure for the year in respect of the eligible vessel that may reasonably be attributed to work carried out before 26 March 1997,

(2)  50% of the portion of the qualified construction expenditure for the year in respect of the eligible vessel that may reasonably be attributed to work carried out after 25 March 1997 and before 13 June 2003, and

(3)  37.5% of the portion of the qualified construction expenditure for the year in respect of the eligible vessel that may reasonably be attributed to work carried out after 12 June 2003,

ii.  where the qualification certificate attests that the vessel is the first, second or third vessel constructed as part of a production run, to an amount that is the product obtained by multiplying the portion of the qualified construction expenditure for the year of the qualified corporation in respect of the eligible vessel that may reasonably be attributed to work carried out before 18 November 2000 by

(1)  where the eligible vessel is the first vessel constructed as part of a production run, 37.5%,

(2)  where the eligible vessel is the second vessel constructed as part of a production run, 25%, and

(3)  where the eligible vessel is the third vessel constructed as part of a production run, 12.5%,

iii.  where the qualification certificate attests that the vessel is the first, second or third vessel constructed as part of a production run, to an amount that is the product obtained by multiplying the portion of the qualified construction expenditure for the year of the qualified corporation in respect of the eligible vessel that may reasonably be attributed to work carried out after 17 November 2000 and before 13 June 2003, by

(1)  where the eligible vessel is the first vessel constructed as part of a production run, 45%,

(2)  where the eligible vessel is the second vessel constructed as part of a production run, 40%, and

(3)  where the eligible vessel is the third vessel constructed as part of a production run, 35%, and

iv.  where the qualification certificate attests that the vessel is the first, second or third vessel constructed as part of a production run, to an amount that is the product obtained by multiplying the portion of the qualified construction expenditure for the year of the qualified corporation in respect of the eligible vessel that may reasonably be attributed to work carried out after 12 June 2003, by,

(1)  where the eligible vessel is the first vessel constructed as part of a production run, 33.75%,

(2)  where the eligible vessel is the second vessel constructed as part of a production run, 30%, and

(3)  where the eligible vessel is the third vessel constructed as part of a production run, 26.25%; and

(b)  the amount by which the aggregate of the following amounts exceeds the aggregate of all amounts each of which is an amount deemed to have been paid to the Minister, under this section, by the qualified corporation in respect of the eligible vessel for a preceding taxation year:

i.  the product obtained by multiplying the portion of the cost of construction of the eligible vessel to the qualified corporation incurred at the end of the year that may reasonably be attributed to work carried out before 18 November 2000, by

(1)  where the qualification certificate attests that the vessel is a prototype vessel, 20%,

(2)  where the qualification certificate attests that the vessel is the first vessel constructed as part of a production run, 15%,

(3)  where the qualification certificate attests that the vessel is the second vessel constructed as part of a production run, 10%, and

(4)  where the qualification certificate attests that the vessel is the third vessel constructed as part of a production run, 5%,

ii.  the product obtained by multiplying the portion of the cost of construction of the eligible vessel to the qualified corporation incurred at the end of the year that may reasonably be attributed to work carried out after 17 November 2000 and before 13 June 2003, by

(1)  where the qualification certificate attests that the vessel is a prototype vessel, 25%,

(2)  where the qualification certificate attests that the vessel is the first vessel constructed as part of a production run, 22.5%,

(3)  where the qualification certificate attests that the vessel is the second vessel constructed as part of a production run, 20%, and

(4)  where the qualification certificate attests that the vessel is the third vessel constructed as part of a production run, 17.5%, and

iii.  the product obtained by multiplying the portion of the cost of construction of the eligible vessel to the qualified corporation incurred at the end of the year that may reasonably be attributed to work carried out after 12 June 2003, by,

(1)  where the qualification certificate attests that the vessel is a prototype vessel, 18.75%,

(2)  where the qualification certificate attests that the vessel is the first vessel constructed as part of a production run, 16.875%,

(3)  where the qualification certificate attests that the vessel is the second vessel constructed as part of a production run, 15%, and

(4)  where the qualification certificate attests that the vessel is the third vessel constructed as part of a production run, 13.125%.

For the purposes of subparagraph b of the first paragraph, the cost of construction, at the end of a taxation year, of an eligible vessel of a qualified corporation is equal to the aggregate of

(a)  the amount by which the portion of the cost to the qualified corporation of construction of the eligible vessel incurred at the end of the year exceeds the aggregate of all amounts each of which is

i.  government assistance or non-government assistance attributable to the cost of construction that the qualified corporation or a person or partnership with whom or with which the qualified corporation is not dealing at arm’s length has received, is entitled to receive or may reasonably expect to receive on or before the qualified corporation’s filing-due date for that year, or

ii.  an apparent payment, attributable to the cost of construction, that the qualified corporation or a person with whom it is not dealing at arm’s length has received, is entitled to receive or may reasonably expect to receive on or before the qualified corporation’s filing-due date for that year; and

(b)  any repayment made by the qualified corporation, the person or the partnership in the year or a preceding taxation year, pursuant to a legal obligation, of assistance described in subparagraph a in respect of the eligible vessel.

For the purposes of subparagraph a of the second paragraph, “apparent payment” means an amount paid or payable by a person who, for the construction of an eligible vessel of a qualified corporation, carries out work or prepares plans and specifications for the qualified corporation, where the amount is paid or payable for the use of premises, facilities or equipment, or for the provision of services, and that may reasonably be considered to be included in the cost of construction of the eligible vessel.

For the purpose of computing the payments that a corporation referred to in the first paragraph is required to make under subparagraph a of the first paragraph of section 1027, or any of sections 1145, 1159.7, 1175 and 1175.19 where they refer to that subparagraph a, the corporation is deemed to have paid to the Minister, on account of the aggregate of its tax payable for the year under this Part and of its tax payable for the year under Parts IV, IV.1, VI and VI.1, on the date on or before which each payment is required to be made, an amount equal to the lesser of

(a)  the amount by which the amount determined under the first paragraph for the year exceeds the aggregate of all amounts each of which is the portion of that amount that may reasonably be considered to be deemed to have been paid to the Minister under this paragraph in the year but before that date; and

(b)  the amount by which the amount of that payment, determined without reference to this chapter, exceeds the aggregate of all amounts each of which is an amount that is deemed, under this chapter but otherwise than under the first paragraph, to have been paid to the Minister on that date, for the purpose of computing that payment.

1997, c. 14, s. 234; 1997, c. 31, s. 143; 1997, c. 85, s. 260; 1999, c. 8, s. 20; 1999, c. 83, s. 213; 2001, c. 7, s. 169; 2001, c. 51, s. 228; 2001, c. 53, s. 260; 2002, c. 9, s. 87; 2003, c. 9, s. 280; 2003, c. 29, s. 135; 2004, c. 21, s. 354; 2006, c. 8, s. 31; 2007, c. 12, s. 186; 2019, c. 29, s. 1; 2021, c. 36, s. 118.

2019-12-11

1029.8.36.55. A qualified corporation that, in a taxation year, constructs in Québec an eligible vessel and encloses with its fiscal return it is required to file for the year under section 1000 a copy of the qualification certificate issued to it by the Minister of Economy and Innovation, in respect of the eligible vessel, attesting that the eligible vessel is a prototype vessel or is the first, second or third vessel constructed as part of a production run, and the prescribed form containing the prescribed information, is deemed, subject to the fourth paragraph, to have paid to the Minister on the corporation’s balance-due day for that year, on account of its tax payable for that year under this Part, the lesser of

(a)  an amount equal, in respect of the eligible vessel

i.  where the qualification certificate issued by the Minister of Economy and Innovation attests that the vessel is a prototype vessel, to the aggregate of

(1)  40% of the portion of the qualified construction expenditure for the year in respect of the eligible vessel that may reasonably be attributed to work carried out before 26 March 1997,

(2)  50% of the portion of the qualified construction expenditure for the year in respect of the eligible vessel that may reasonably be attributed to work carried out after 25 March 1997 and before 13 June 2003, and

(3)  37.5% of the portion of the qualified construction expenditure for the year in respect of the eligible vessel that may reasonably be attributed to work carried out after 12 June 2003,

ii.  where the qualification certificate issued by the Minister of Economy and Innovation attests that the vessel is the first, second or third vessel constructed as part of a production run, to an amount that is the product obtained by multiplying the portion of the qualified construction expenditure for the year of the qualified corporation in respect of the eligible vessel that may reasonably be attributed to work carried out before 18 November 2000 by

(1)  where the eligible vessel is the first vessel constructed as part of a production run, 37.5%,

(2)  where the eligible vessel is the second vessel constructed as part of a production run, 25%, and

(3)  where the eligible vessel is the third vessel constructed as part of a production run, 12.5%,

iii.  where the qualification certificate issued by the Minister of Economy and Innovation attests that the vessel is the first, second or third vessel constructed as part of a production run, to an amount that is the product obtained by multiplying the portion of the qualified construction expenditure for the year of the qualified corporation in respect of the eligible vessel that may reasonably be attributed to work carried out after 17 November 2000 and before 13 June 2003, by

(1)  where the eligible vessel is the first vessel constructed as part of a production run, 45%,

(2)  where the eligible vessel is the second vessel constructed as part of a production run, 40%, and

(3)  where the eligible vessel is the third vessel constructed as part of a production run, 35%, and

iv.  where the qualification certificate issued by the Minister of Economy and Innovation attests that the vessel is the first, second or third vessel constructed as part of a production run, to an amount that is the product obtained by multiplying the portion of the qualified construction expenditure for the year of the qualified corporation in respect of the eligible vessel that may reasonably be attributed to work carried out after 12 June 2003, by,

(1)  where the eligible vessel is the first vessel constructed as part of a production run, 33.75%,

(2)  where the eligible vessel is the second vessel constructed as part of a production run, 30%, and

(3)  where the eligible vessel is the third vessel constructed as part of a production run, 26.25%; and

(b)  the amount by which the aggregate of the following amounts exceeds the aggregate of all amounts each of which is an amount deemed to have been paid to the Minister, under this section, by the qualified corporation in respect of the eligible vessel for a preceding taxation year:

i.  the product obtained by multiplying the portion of the cost of construction of the eligible vessel to the qualified corporation incurred at the end of the year that may reasonably be attributed to work carried out before 18 November 2000, by

(1)  where the qualification certificate issued by the Minister of Economy and Innovation attests that the vessel is a prototype vessel, 20%,

(2)  where the qualification certificate issued by the Minister of Economy and Innovation attests that the vessel is the first vessel constructed as part of a production run, 15%,

(3)  where the qualification certificate issued by the Minister of Economy and Innovation attests that the vessel is the second vessel constructed as part of a production run, 10%, and

(4)  where the qualification certificate issued by the Minister of Economy and Innovation attests that the vessel is the third vessel constructed as part of a production run, 5%,

ii.  the product obtained by multiplying the portion of the cost of construction of the eligible vessel to the qualified corporation incurred at the end of the year that may reasonably be attributed to work carried out after 17 November 2000 and before 13 June 2003, by

(1)  where the qualification certificate issued by the Minister of Economy and Innovation attests that the vessel is a prototype vessel, 25%,

(2)  where the qualification certificate issued by the Minister of Economy and Innovation attests that the vessel is the first vessel constructed as part of a production run, 22.5%,

(3)  where the qualification certificate issued by the Minister of Economy and Innovation attests that the vessel is the second vessel constructed as part of a production run, 20%, and

(4)  where the qualification certificate issued by the Minister of Economy and Innovation attests that the vessel is the third vessel constructed as part of a production run, 17.5%, and

iii.  the product obtained by multiplying the portion of the cost of construction of the eligible vessel to the qualified corporation incurred at the end of the year that may reasonably be attributed to work carried out after 12 June 2003, by,

(1)  where the qualification certificate issued by the Minister of Economy and Innovation attests that the vessel is a prototype vessel, 18.75%,

(2)  where the qualification certificate issued by the Minister of Economy and Innovation attests that the vessel is the first vessel constructed as part of a production run, 16.875%,

(3)  where the qualification certificate issued by the Minister of Economy and Innovation attests that the vessel is the second vessel constructed as part of a production run, 15%, and

(4)  where the qualification certificate issued by the Minister of Economy and Innovation attests that the vessel is the third vessel constructed as part of a production run, 13.125%.

For the purposes of subparagraph b of the first paragraph, the cost of construction, at the end of a taxation year, of an eligible vessel of a qualified corporation is equal to the aggregate of

(a)  the amount by which the portion of the cost to the qualified corporation of construction of the eligible vessel incurred at the end of the year exceeds the aggregate of all amounts each of which is

i.  government assistance or non-government assistance attributable to the cost of construction that the qualified corporation or a person or partnership with whom or with which the qualified corporation is not dealing at arm’s length has received, is entitled to receive or may reasonably expect to receive on or before the qualified corporation’s filing-due date for that year, or

ii.  an apparent payment, attributable to the cost of construction, that the qualified corporation or a person with whom it is not dealing at arm’s length has received, is entitled to receive or may reasonably expect to receive on or before the qualified corporation’s filing-due date for that year; and

(b)  any repayment made by the qualified corporation, the person or the partnership in the year or a preceding taxation year, pursuant to a legal obligation, of assistance described in subparagraph a in respect of the eligible vessel.

For the purposes of subparagraph a of the second paragraph, “apparent payment” means an amount paid or payable by a person who, for the construction of an eligible vessel of a qualified corporation, carries out work or prepares plans and specifications for the qualified corporation, where the amount is paid or payable for the use of premises, facilities or equipment, or for the provision of services, and that may reasonably be considered to be included in the cost of construction of the eligible vessel.

For the purpose of computing the payments that a corporation referred to in the first paragraph is required to make under subparagraph a of the first paragraph of section 1027, or any of sections 1145, 1159.7, 1175 and 1175.19 where they refer to that subparagraph a, the corporation is deemed to have paid to the Minister, on account of the aggregate of its tax payable for the year under this Part and of its tax payable for the year under Parts IV, IV.1, VI and VI.1, on the date on or before which each payment is required to be made, an amount equal to the lesser of

(a)  the amount by which the amount determined under the first paragraph for the year exceeds the aggregate of all amounts each of which is the portion of that amount that may reasonably be considered to be deemed to have been paid to the Minister under this paragraph in the year but before that date; and

(b)  the amount by which the amount of that payment, determined without reference to this chapter, exceeds the aggregate of all amounts each of which is an amount that is deemed, under this chapter but otherwise than under the first paragraph, to have been paid to the Minister on that date, for the purpose of computing that payment.

1997, c. 14, s. 234; 1997, c. 31, s. 143; 1997, c. 85, s. 260; 1999, c. 8, s. 20; 1999, c. 83, s. 213; 2001, c. 7, s. 169; 2001, c. 51, s. 228; 2001, c. 53, s. 260; 2002, c. 9, s. 87; 2003, c. 9, s. 280; 2003, c. 29, s. 135; 2004, c. 21, s. 354; 2006, c. 8, s. 31; 2007, c. 12, s. 186; 2019, c. 29, s. 1.

2007-11-07

1029.8.36.55. A qualified corporation that, in a taxation year, constructs in Québec an eligible vessel and encloses with its fiscal return it is required to file for the year under section 1000 a copy of the qualification certificate issued to it by the Minister of Economic Development, Innovation and Export Trade, in respect of the eligible vessel, attesting that the eligible vessel is a prototype vessel or is the first, second or third vessel constructed as part of a production run, and the prescribed form containing the prescribed information, is deemed, subject to the fourth paragraph, to have paid to the Minister on the corporation’s balance-due day for that year, on account of its tax payable for that year under this Part, the lesser of

(a)  an amount equal, in respect of the eligible vessel

i.  where the qualification certificate issued by the Minister of Economic Development, Innovation and Export Trade attests that the vessel is a prototype vessel, to the aggregate of

(1)  40% of the portion of the qualified construction expenditure for the year in respect of the eligible vessel that may reasonably be attributed to work carried out before 26 March 1997,

(2)  50% of the portion of the qualified construction expenditure for the year in respect of the eligible vessel that may reasonably be attributed to work carried out after 25 March 1997 and before 13 June 2003, and

(3)  37.5% of the portion of the qualified construction expenditure for the year in respect of the eligible vessel that may reasonably be attributed to work carried out after 12 June 2003,

ii.  where the qualification certificate issued by the Minister of Economic Development, Innovation and Export Trade attests that the vessel is the first, second or third vessel constructed as part of a production run, to an amount that is the product obtained by multiplying the portion of the qualified construction expenditure for the year of the qualified corporation in respect of the eligible vessel that may reasonably be attributed to work carried out before 18 November 2000 by

(1)  where the eligible vessel is the first vessel constructed as part of a production run, 37.5%,

(2)  where the eligible vessel is the second vessel constructed as part of a production run, 25%, and

(3)  where the eligible vessel is the third vessel constructed as part of a production run, 12.5%,

iii.  where the qualification certificate issued by the Minister of Economic Development, Innovation and Export Trade attests that the vessel is the first, second or third vessel constructed as part of a production run, to an amount that is the product obtained by multiplying the portion of the qualified construction expenditure for the year of the qualified corporation in respect of the eligible vessel that may reasonably be attributed to work carried out after 17 November 2000 and before 13 June 2003, by

(1)  where the eligible vessel is the first vessel constructed as part of a production run, 45%,

(2)  where the eligible vessel is the second vessel constructed as part of a production run, 40%, and

(3)  where the eligible vessel is the third vessel constructed as part of a production run, 35%, and

iv.  where the qualification certificate issued by the Minister of Economic Development, Innovation and Export Trade attests that the vessel is the first, second or third vessel constructed as part of a production run, to an amount that is the product obtained by multiplying the portion of the qualified construction expenditure for the year of the qualified corporation in respect of the eligible vessel that may reasonably be attributed to work carried out after 12 June 2003, by,

(1)  where the eligible vessel is the first vessel constructed as part of a production run, 33.75%,

(2)  where the eligible vessel is the second vessel constructed as part of a production run, 30%, and

(3)  where the eligible vessel is the third vessel constructed as part of a production run, 26.25%; and

(b)  the amount by which the aggregate of the following amounts exceeds the aggregate of all amounts each of which is an amount deemed to have been paid to the Minister, under this section, by the qualified corporation in respect of the eligible vessel for a preceding taxation year:

i.  the product obtained by multiplying the portion of the cost of construction of the eligible vessel to the qualified corporation incurred at the end of the year that may reasonably be attributed to work carried out before 18 November 2000, by

(1)  where the qualification certificate issued by the Minister of Economic Development, Innovation and Export Trade attests that the vessel is a prototype vessel, 20%,

(2)  where the qualification certificate issued by the Minister of Economic Development, Innovation and Export Trade attests that the vessel is the first vessel constructed as part of a production run, 15%,

(3)  where the qualification certificate issued by the Minister of Economic Development, Innovation and Export Trade attests that the vessel is the second vessel constructed as part of a production run, 10%, and

(4)  where the qualification certificate issued by the Minister of Economic Development, Innovation and Export Trade attests that the vessel is the third vessel constructed as part of a production run, 5%,

ii.  the product obtained by multiplying the portion of the cost of construction of the eligible vessel to the qualified corporation incurred at the end of the year that may reasonably be attributed to work carried out after 17 November 2000 and before 13 June 2003, by

(1)  where the qualification certificate issued by the Minister of Economic Development, Innovation and Export Trade attests that the vessel is a prototype vessel, 25%,

(2)  where the qualification certificate issued by the Minister of Economic Development, Innovation and Export Trade attests that the vessel is the first vessel constructed as part of a production run, 22.5%,

(3)  where the qualification certificate issued by the Minister of Economic Development, Innovation and Export Trade attests that the vessel is the second vessel constructed as part of a production run, 20%, and

(4)  where the qualification certificate issued by the Minister of Economic Development, Innovation and Export Trade attests that the vessel is the third vessel constructed as part of a production run, 17.5%, and

iii.  the product obtained by multiplying the portion of the cost of construction of the eligible vessel to the qualified corporation incurred at the end of the year that may reasonably be attributed to work carried out after 12 June 2003, by,

(1)  where the qualification certificate issued by the Minister of Economic Development, Innovation and Export Trade attests that the vessel is a prototype vessel, 18.75%,

(2)  where the qualification certificate issued by the Minister of Economic Development, Innovation and Export Trade attests that the vessel is the first vessel constructed as part of a production run, 16.875%,

(3)  where the qualification certificate issued by the Minister of Economic Development, Innovation and Export Trade attests that the vessel is the second vessel constructed as part of a production run, 15%, and

(4)  where the qualification certificate issued by the Minister of Economic Development, Innovation and Export Trade attests that the vessel is the third vessel constructed as part of a production run, 13.125%.

For the purposes of subparagraph b of the first paragraph, the cost of construction, at the end of a taxation year, of an eligible vessel of a qualified corporation is equal to the aggregate of

(a)  the amount by which the portion of the cost to the qualified corporation of construction of the eligible vessel incurred at the end of the year exceeds the aggregate of all amounts each of which is

i.  government assistance or non-government assistance attributable to the cost of construction that the qualified corporation or a person or partnership with whom or with which the qualified corporation is not dealing at arm’s length has received, is entitled to receive or may reasonably expect to receive on or before the qualified corporation’s filing-due date for that year, or

ii.  an apparent payment, attributable to the cost of construction, that the qualified corporation or a person with whom it is not dealing at arm’s length has received, is entitled to receive or may reasonably expect to receive on or before the qualified corporation’s filing-due date for that year; and

(b)  any repayment made by the qualified corporation, the person or the partnership in the year or a preceding taxation year, pursuant to a legal obligation, of assistance described in subparagraph a in respect of the eligible vessel.

For the purposes of subparagraph a of the second paragraph, “apparent payment” means an amount paid or payable by a person who, for the construction of an eligible vessel of a qualified corporation, carries out work or prepares plans and specifications for the qualified corporation, where the amount is paid or payable for the use of premises, facilities or equipment, or for the provision of services, and that may reasonably be considered to be included in the cost of construction of the eligible vessel.

For the purpose of computing the payments that a corporation referred to in the first paragraph is required to make under subparagraph a of the first paragraph of section 1027, or any of sections 1145, 1159.7, 1175 and 1175.19 where they refer to that subparagraph a, the corporation is deemed to have paid to the Minister, on account of the aggregate of its tax payable for the year under this Part and of its tax payable for the year under Parts IV, IV.1, VI and VI.1, on the date on or before which each payment is required to be made, an amount equal to the lesser of

(a)  the amount by which the amount determined under the first paragraph for the year exceeds the aggregate of all amounts each of which is the portion of that amount that may reasonably be considered to be deemed to have been paid to the Minister under this paragraph in the year but before that date; and

(b)  the amount by which the amount of that payment, determined without reference to this chapter, exceeds the aggregate of all amounts each of which is an amount that is deemed, under this chapter but otherwise than under the first paragraph, to have been paid to the Minister on that date, for the purpose of computing that payment.

1997, c. 14, s. 234; 1997, c. 31, s. 143; 1997, c. 85, s. 260; 1999, c. 8, s. 20; 1999, c. 83, s. 213; 2001, c. 7, s. 169; 2001, c. 51, s. 228; 2001, c. 53, s. 260; 2002, c. 9, s. 87; 2003, c. 9, s. 280; 2003, c. 29, s. 135; 2004, c. 21, s. 354; 2006, c. 8, s. 31; 2007, c. 12, s. 186.

2006-06-08

1029.8.36.55. A qualified corporation that, in a taxation year, constructs in Québec an eligible vessel and encloses with its fiscal return it is required to file for the year under section 1000 a copy of the qualification certificate issued to it by the Minister of Economic Development, Innovation and Export Trade, in respect of the eligible vessel, attesting that the eligible vessel is a prototype vessel or is the first, second or third vessel constructed as part of a production run, and the prescribed form containing the prescribed information, is deemed, subject to the fourth paragraph, to have paid to the Minister on the corporation’s balance-due day for that year, on account of its tax payable for that year under this Part, the lesser of

(a)  an amount equal, in respect of the eligible vessel

i.  where the qualification certificate issued by the Minister of Economic Development, Innovation and Export Trade attests that the vessel is a prototype vessel, to the aggregate of

(1)  40% of the portion of the qualified construction expenditure for the year in respect of the eligible vessel that may reasonably be attributed to work carried out before 26 March 1997,

(2)  50% of the portion of the qualified construction expenditure for the year in respect of the eligible vessel that may reasonably be attributed to work carried out after 25 March 1997 and before 13 June 2003, and

(3)  37.5% of the portion of the qualified construction expenditure for the year in respect of the eligible vessel that may reasonably be attributed to work carried out after 12 June 2003,

ii.  where the qualification certificate issued by the Minister of Economic Development, Innovation and Export Trade attests that the vessel is the first, second or third vessel constructed as part of a production run, to an amount that is the product obtained by multiplying the portion of the qualified construction expenditure for the year of the qualified corporation in respect of the eligible vessel that may reasonably be attributed to work carried out before 18 November 2000 by

(1)  where the eligible vessel is the first vessel constructed as part of a production run, 37.5%,

(2)  where the eligible vessel is the second vessel constructed as part of a production run, 25%, and

(3)  where the eligible vessel is the third vessel constructed as part of a production run, 12.5%,

iii.  where the qualification certificate issued by the Minister of Economic Development, Innovation and Export Trade attests that the vessel is the first, second or third vessel constructed as part of a production run, to an amount that is the product obtained by multiplying the portion of the qualified construction expenditure for the year of the qualified corporation in respect of the eligible vessel that may reasonably be attributed to work carried out after 17 November 2000 and before 13 June 2003, by

(1)  where the eligible vessel is the first vessel constructed as part of a production run, 45%,

(2)  where the eligible vessel is the second vessel constructed as part of a production run, 40%, and

(3)  where the eligible vessel is the third vessel constructed as part of a production run, 35%, and

iv.  where the qualification certificate issued by the Minister of Economic Development, Innovation and Export Trade attests that the vessel is the first, second or third vessel constructed as part of a production run, to an amount that is the product obtained by multiplying the portion of the qualified construction expenditure for the year of the qualified corporation in respect of the eligible vessel that may reasonably be attributed to work carried out after 12 June 2003, by,

(1)  where the eligible vessel is the first vessel constructed as part of a production run, 33.75%,

(2)  where the eligible vessel is the second vessel constructed as part of a production run, 30%, and

(3)  where the eligible vessel is the third vessel constructed as part of a production run, 26.25%; and

(b)  the amount by which the aggregate of the following amounts exceeds the aggregate of all amounts each of which is an amount deemed to have been paid to the Minister, under this section, by the qualified corporation in respect of the eligible vessel for a preceding taxation year:

i.  the product obtained by multiplying the portion of the cost of construction of the eligible vessel to the qualified corporation incurred at the end of the year that may reasonably be attributed to work carried out before 18 November 2000, by

(1)  where the qualification certificate issued by the Minister of Economic Development, Innovation and Export Trade attests that the vessel is a prototype vessel, 20%,

(2)  where the qualification certificate issued by the Minister of Economic Development, Innovation and Export Trade attests that the vessel is the first vessel constructed as part of a production run, 15%,

(3)  where the qualification certificate issued by the Minister of Economic Development, Innovation and Export Trade attests that the vessel is the second vessel constructed as part of a production run, 10%, and

(4)  where the qualification certificate issued by the Minister of Economic Development, Innovation and Export Trade attests that the vessel is the third vessel constructed as part of a production run, 5%,

ii.  the product obtained by multiplying the portion of the cost of construction of the eligible vessel to the qualified corporation incurred at the end of the year that may reasonably be attributed to work carried out after 17 November 2000 and before 13 June 2003, by

(1)  where the qualification certificate issued by the Minister of Economic Development, Innovation and Export Trade attests that the vessel is a prototype vessel, 25%,

(2)  where the qualification certificate issued by the Minister of Economic Development, Innovation and Export Trade attests that the vessel is the first vessel constructed as part of a production run, 22.5%,

(3)  where the qualification certificate issued by the Minister of Economic Development, Innovation and Export Trade attests that the vessel is the second vessel constructed as part of a production run, 20%, and

(4)  where the qualification certificate issued by the Minister of Economic Development, Innovation and Export Trade attests that the vessel is the third vessel constructed as part of a production run, 17.5%, and

iii.  the product obtained by multiplying the portion of the cost of construction of the eligible vessel to the qualified corporation incurred at the end of the year that may reasonably be attributed to work carried out after 12 June 2003, by,

(1)  where the qualification certificate issued by the Minister of Economic Development, Innovation and Export Trade attests that the vessel is a prototype vessel, 18.75%,

(2)  where the qualification certificate issued by the Minister of Economic Development, Innovation and Export Trade attests that the vessel is the first vessel constructed as part of a production run, 16.875%,

(3)  where the qualification certificate issued by the Minister of Economic Development, Innovation and Export Trade attests that the vessel is the second vessel constructed as part of a production run, 15%, and

(4)  where the qualification certificate issued by the Minister of Economic Development, Innovation and Export Trade attests that the vessel is the third vessel constructed as part of a production run, 13.125%.

For the purposes of subparagraph b of the first paragraph, the cost of construction, at the end of a taxation year, of an eligible vessel of a qualified corporation is equal to the aggregate of

(a)  the amount by which, for the qualified corporation, the portion of the cost of construction of the eligible vessel incurred at the end of the year exceeds the aggregate of all amounts each of which is government assistance, non-government assistance or an apparent payment, attributable to the cost of construction, that the qualified corporation or, in the case of an apparent payment, a person with whom or with which it is not dealing at arm’s length has received, is entitled to receive or may reasonably expect to receive on or before the qualified corporation’s filing-due date for that year; and

(b)  any repayment made by the corporation in the year or in a preceding taxation year, pursuant to a legal obligation, of assistance referred to in subparagraph a in respect of the eligible vessel.

For the purposes of subparagraph a of the second paragraph, “apparent payment” means an amount paid or payable by a person who, for the construction of an eligible vessel of a qualified corporation, carries out work or prepares plans and specifications for the qualified corporation, where the amount is paid or payable for the use of premises, facilities or equipment, or for the provision of services, and that may reasonably be considered to be included in the cost of construction of the eligible vessel.

For the purpose of computing the payments that a corporation referred to in the first paragraph is required to make under subparagraph a of the first paragraph of section 1027, or any of sections 1145, 1159.7, 1175 and 1175.19 where they refer to that subparagraph a, the corporation is deemed to have paid to the Minister, on account of the aggregate of its tax payable for the year under this Part and of its tax payable for the year under Parts IV, IV.1, VI and VI.1, on the date on or before which each payment is required to be made, an amount equal to the lesser of

(a)  the amount by which the amount determined under the first paragraph for the year exceeds the aggregate of all amounts each of which is the portion of that amount that may reasonably be considered to be deemed to have been paid to the Minister under this paragraph in the year but before that date; and

(b)  the amount by which the amount of that payment, determined without reference to this chapter, exceeds the aggregate of all amounts each of which is an amount that is deemed, under this chapter but otherwise than under the first paragraph, to have been paid to the Minister on that date, for the purpose of computing that payment.

1997, c. 14, s. 234; 1997, c. 31, s. 143; 1997, c. 85, s. 260; 1999, c. 8, s. 20; 1999, c. 83, s. 213; 2001, c. 7, s. 169; 2001, c. 51, s. 228; 2001, c. 53, s. 260; 2002, c. 9, s. 87; 2003, c. 9, s. 280; 2003, c. 29, s. 135; 2004, c. 21, s. 354; 2006, c. 8, s. 31.

2006-03-01

1029.8.36.55. A qualified corporation that, in a taxation year, constructs in Québec an eligible vessel and encloses with its fiscal return it is required to file for the year under section 1000 a copy of the qualification certificate issued to it by the Minister of Economic and Regional Development and Research, in respect of the eligible vessel, attesting that the eligible vessel is a prototype vessel or is the first, second or third vessel constructed as part of a production run, and the prescribed form containing the prescribed information, is deemed, subject to the fourth paragraph, to have paid to the Minister on the corporation’s balance-due day for that year, on account of its tax payable for that year under this Part, the lesser of

(a)  an amount equal, in respect of the eligible vessel

i.  where the qualification certificate issued by the Minister of Economic and Regional Development and Research attests that the vessel is a prototype vessel, to the aggregate of

(1)  40% of the portion of the qualified construction expenditure for the year in respect of the eligible vessel that may reasonably be attributed to work carried out before 26 March 1997,

(2)  50% of the portion of the qualified construction expenditure for the year in respect of the eligible vessel that may reasonably be attributed to work carried out after 25 March 1997 and before 13 June 2003, and

(3)  37.5% of the portion of the qualified construction expenditure for the year in respect of the eligible vessel that may reasonably be attributed to work carried out after 12 June 2003,

ii.  where the qualification certificate issued by the Minister of Economic and Regional Development and Research attests that the vessel is the first, second or third vessel constructed as part of a production run, to an amount that is the product obtained by multiplying the portion of the qualified construction expenditure for the year of the qualified corporation in respect of the eligible vessel that may reasonably be attributed to work carried out before 18 November 2000 by

(1)  where the eligible vessel is the first vessel constructed as part of a production run, 37.5%,

(2)  where the eligible vessel is the second vessel constructed as part of a production run, 25%, and

(3)  where the eligible vessel is the third vessel constructed as part of a production run, 12.5%,

iii.  where the qualification certificate issued by the Minister of Economic and Regional Development and Research attests that the vessel is the first, second or third vessel constructed as part of a production run, to an amount that is the product obtained by multiplying the portion of the qualified construction expenditure for the year of the qualified corporation in respect of the eligible vessel that may reasonably be attributed to work carried out after 17 November 2000 and before 13 June 2003, by

(1)  where the eligible vessel is the first vessel constructed as part of a production run, 45%,

(2)  where the eligible vessel is the second vessel constructed as part of a production run, 40%, and

(3)  where the eligible vessel is the third vessel constructed as part of a production run, 35%, and

iv.  where the qualification certificate issued by the Minister of Economic and Regional Development and Research attests that the vessel is the first, second or third vessel constructed as part of a production run, to an amount that is the product obtained by multiplying the portion of the qualified construction expenditure for the year of the qualified corporation in respect of the eligible vessel that may reasonably be attributed to work carried out after 12 June 2003, by,

(1)  where the eligible vessel is the first vessel constructed as part of a production run, 33.75%,

(2)  where the eligible vessel is the second vessel constructed as part of a production run, 30%, and

(3)  where the eligible vessel is the third vessel constructed as part of a production run, 26.25%; and

(b)  the amount by which the aggregate of the following amounts exceeds the aggregate of all amounts each of which is an amount deemed to have been paid to the Minister, under this section, by the qualified corporation in respect of the eligible vessel for a preceding taxation year:

i.  the product obtained by multiplying the portion of the cost of construction of the eligible vessel to the qualified corporation incurred at the end of the year that may reasonably be attributed to work carried out before 18 November 2000, by

(1)  where the qualification certificate issued by the Minister of Economic and Regional Development and Research attests that the vessel is a prototype vessel, 20%,

(2)  where the qualification certificate issued by the Minister of Economic and Regional Development and Research attests that the vessel is the first vessel constructed as part of a production run, 15%,

(3)  where the qualification certificate issued by the Minister of Economic and Regional Development and Research attests that the vessel is the second vessel constructed as part of a production run, 10%, and

(4)  where the qualification certificate issued by the Minister of Economic and Regional Development and Research attests that the vessel is the third vessel constructed as part of a production run, 5%,

ii.  the product obtained by multiplying the portion of the cost of construction of the eligible vessel to the qualified corporation incurred at the end of the year that may reasonably be attributed to work carried out after 17 November 2000 and before 13 June 2003, by

(1)  where the qualification certificate issued by the Minister of Economic and Regional Development and Research attests that the vessel is a prototype vessel, 25%,

(2)  where the qualification certificate issued by the Minister of Economic and Regional Development and Research attests that the vessel is the first vessel constructed as part of a production run, 22.5%,

(3)  where the qualification certificate issued by the Minister of Economic and Regional Development and Research attests that the vessel is the second vessel constructed as part of a production run, 20%, and

(4)  where the qualification certificate issued by the Minister of Economic and Regional Development and Research attests that the vessel is the third vessel constructed as part of a production run, 17.5%, and

iii.  the product obtained by multiplying the portion of the cost of construction of the eligible vessel to the qualified corporation incurred at the end of the year that may reasonably be attributed to work carried out after 12 June 2003, by,

(1)  where the qualification certificate issued by the Minister of Economic and Regional Development and Research attests that the vessel is a prototype vessel, 18.75%,

(2)  where the qualification certificate issued by the Minister of Economic and Regional Development and Research attests that the vessel is the first vessel constructed as part of a production run, 16.875%,

(3)  where the qualification certificate issued by the Minister of Economic and Regional Development and Research attests that the vessel is the second vessel constructed as part of a production run, 15%, and

(4)  where the qualification certificate issued by the Minister of Economic and Regional Development and Research attests that the vessel is the third vessel constructed as part of a production run, 13.125%.

For the purposes of subparagraph b of the first paragraph, the cost of construction, at the end of a taxation year, of an eligible vessel of a qualified corporation is equal to the aggregate of

(a)  the amount by which, for the qualified corporation, the portion of the cost of construction of the eligible vessel incurred at the end of the year exceeds the aggregate of all amounts each of which is government assistance, non-government assistance or an apparent payment, attributable to the cost of construction, that the qualified corporation or, in the case of an apparent payment, a person with whom or with which it is not dealing at arm’s length has received, is entitled to receive or may reasonably expect to receive on or before the qualified corporation’s filing-due date for that year; and

(b)  any repayment made by the corporation in the year or in a preceding taxation year, pursuant to a legal obligation, of assistance referred to in subparagraph a in respect of the eligible vessel.

For the purposes of subparagraph a of the second paragraph, "apparent payment" means an amount paid or payable by a person who, for the construction of an eligible vessel of a qualified corporation, carries out work or prepares plans and specifications for the qualified corporation, where the amount is paid or payable for the use of premises, facilities or equipment, or for the provision of services, and that may reasonably be considered to be included in the cost of construction of the eligible vessel.

For the purpose of computing the payments that a corporation referred to in the first paragraph is required to make under subparagraph a of the first paragraph of section 1027, or any of sections 1145, 1159.7, 1175 and 1175.19 where they refer to that subparagraph a, the corporation is deemed to have paid to the Minister, on account of the aggregate of its tax payable for the year under this Part and of its tax payable for the year under Parts IV, IV.1, VI and VI.1, on the date on or before which each payment is required to be made, an amount equal to the lesser of

(a)  the amount by which the amount determined under the first paragraph for the year exceeds the aggregate of all amounts each of which is the portion of that amount that may reasonably be considered to be deemed to have been paid to the Minister under this paragraph in the year but before that date; and

(b)  the amount by which the amount of that payment, determined without reference to this chapter, exceeds the aggregate of all amounts each of which is an amount that is deemed, under this chapter but otherwise than under the first paragraph, to have been paid to the Minister on that date, for the purpose of computing that payment.

1997, c. 14, s. 234; 1997, c. 31, s. 143; 1997, c. 85, s. 260; 1999, c. 8, s. 20; 1999, c. 83, s. 213; 2001, c. 7, s. 169; 2001, c. 51, s. 228; 2001, c. 53, s. 260; 2002, c. 9, s. 87; 2003, c. 9, s. 280; 2003, c. 29, s. 135; O.C. 222-2004; 2004, c. 21, s. 354.