I-3 - Taxation Act

Section 1029.8.36.72.46 Disposition versions

2021-06-04

1029.8.36.72.46. (Repealed).

2002, c. 9, s. 98; 2003, c. 9, s. 304; 2004, c. 21, s. 388; 2021, c. 18, s. 125.

2006-03-01

1029.8.36.72.46. The agreement to which the second paragraph of section 1029.8.36.72.45 refers in respect of a calendar year means an agreement under which all of the qualified corporations carrying on, in the calendar year, a recognized business and that are associated with each other at the end of that calendar year, hereinafter called the “group of associated corporations”, attribute to one or more of their number, for the purposes of this division, one or more amounts; the aggregate of the amounts so attributed, for the calendar year, shall not be greater than the least of

(a)  the amount by which the aggregate of all amounts each of which is the salary or wages paid by a qualified corporation that is a member of the group of associated corporations to an employee in respect of a period within the calendar year for which the employee is an eligible employee of the corporation, in relation to a recognized business it carries on in the calendar year, exceeds the aggregate of all amounts each of which is

i.  except in respect of a corporation that results from an amalgamation, an amount equal to zero, where, at no time in the base period of a qualified corporation that is a member of the group of associated corporations in relation to a recognized business it carries on in the calendar year, the corporation carried on a business in Québec in the sectors of activity described in any of paragraphs a to f of the definition of “recognized business” in the first paragraph of section 1029.8.36.72.43, and

ii.  in any other case, the aggregate of all amounts each of which is the salary or wages paid by a qualified corporation that is a member of the group of associated corporations to an employee in a period within the qualified corporation’s base period in relation to a recognized business it carries on in the calendar year, for which the employee is an eligible employee of the corporation in relation to the recognized business;

(b)  the amount by which the aggregate of all amounts each of which is the eligible amount of a qualified corporation that is a member of the group of associated corporations for the calendar year exceeds the aggregate of all amounts each of which is the base amount of such a corporation in relation to a recognized business it carries on in the calendar year; and

(c)  the amount by which the aggregate of all amounts each of which is the eligible amount of a qualified corporation that is a member of the group of associated corporations at the end of the calendar year, or the salary or wages paid by another qualified corporation that is associated with a qualified corporation that is a member of the group at the end of the calendar year but that does not carry on a recognized business in the calendar year, to an employee who reports for work at an establishment of the other corporation situated in Québec, where the salary or wages are paid in respect of a period within the calendar year, for which the employee would have been an eligible employee of the qualified corporation if the employee had been an employee of the qualified corporation, if a business carried on by the other corporation had been a recognized business carried on by the qualified corporation and if, in the event that the establishment of the other corporation where the employee reported for work was not situated in an eligible region, the establishment where the employee reported for work had been situated in an eligible region, exceeds the total of

i.  the aggregate of all amounts each of which is the base amount of a qualified corporation that is a member of the group of associated corporations at the end of the calendar year, in relation to a recognized business it carries on in the calendar year, and

ii.  the aggregate of all amounts each of which is the salary or wages paid by another qualified corporation that is associated with a corporation that is a member of the group at the end of the calendar year but that does not carry on a recognized business in the calendar year, to an employee who reports for work at an establishment of the other corporation situated in Québec, where the salary or wages are paid by the other corporation in respect of a period within the base period of a qualified corporation that is a member of the group at the end of the calendar year in relation to a recognized business it carries on in the calendar year, for which the employee would have been an eligible employee of the qualified corporation if the employee had been an employee of the qualified corporation, if a business carried on by the other corporation had been a recognized business carried on by the qualified corporation and if, in the event that the establishment of the other corporation where the employee reported for work was not situated in an eligible region, the establishment where the employee reported for work had been situated in an eligible region, unless an amount is included, in respect of the employee, in computing an amount under this subparagraph ii, in relation to a period within a base period in relation to another recognized business that is carried on by a qualified corporation that is a member of the group of associated corporations.

However, for the purposes of the first paragraph, where the calendar year referred to in the first paragraph is the calendar year 2001 or 2002 and the base period of the qualified corporation that is a member of the group of associated corporations, in relation to the recognized business, is the calendar year 1999 or 2000, or where that calendar year is the calendar year 2002 and the base period of the qualified corporation that is a member of the group of associated corporations, in relation to the recognized business, is the calendar year 2001, the following rules apply:

(a)  the amount determined in accordance with subparagraph ii of subparagraph a or c of the first paragraph, in respect of the corporation, in relation to the recognized business, is deemed to be equal to 90% of that amount otherwise determined; and

(b)  the base amount of the corporation, in relation to the recognized business, is deemed to be equal to 90% of that amount otherwise determined.

2002, c. 9, s. 98; 2003, c. 9, s. 304; 2004, c. 21, s. 388.