I-3 - Taxation Act

Section 1029.8.36.72.82.10.1 Disposition versions

2011-02-17

1029.8.36.72.82.10.1. Subject to sections 1029.8.36.72.82.8 and 1029.8.36.72.82.9, if, at a particular time in a particular calendar year that ends in a particular taxation year or in a preceding taxation year, the activities carried on by a person or partnership (in this section referred to as the “vendor”) in relation to a recognized business or a business that could qualify as a recognized business if it were carried on in a designated region, diminish or cease and it may reasonably be considered that, as a result, another person or partnership (in this section referred to as the “purchaser”) that is associated with the vendor at the particular time, begins, after the particular time, to carry on similar activities in the course of carrying on such a business, or increases, after the particular time, the scope of similar activities carried on in the course of carrying on such a business, the following rules apply for the purpose of determining the amount that a particular corporation is deemed to have paid to the Minister under this division for the particular taxation year:

(a)  if the particular corporation is the vendor,

i.  the aggregate of all amounts each of which is the salary or wages paid by the vendor to an employee in respect of a pay period, ended in the vendor’s base period, for which the employee is an eligible employee, is deemed, for the purposes of subparagraph 2 of subparagraph i of subparagraph a of the first paragraph of sections 1029.8.36.72.82.2, 1029.8.36.72.82.3, 1029.8.36.72.82.3.2 and 1029.8.36.72.82.3.3 and subparagraph ii of subparagraph a of the first paragraph of section 1029.8.36.72.82.4, to be equal to the amount by which that amount otherwise determined exceeds the amount determined by the formula

A × G,

ii.  the aggregate of all amounts each of which is the portion of a salary or wages paid by the vendor to an employee in respect of a pay period, ended in the vendor’s base period, for which the employee is an eligible employee, that may reasonably be attributed to activities that are referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1, is deemed, for the purposes of subparagraph 2 of subparagraph i of subparagraph a.1 of the first paragraph of sections 1029.8.36.72.82.2 and 1029.8.36.72.82.3 and subparagraph ii of paragraph a of section 1029.8.36.72.82.4.1, to be equal to the amount by which that amount otherwise determined exceeds the amount that would be determined by the formula in subparagraph i if, for the purposes of subparagraph a of the second paragraph, only the employees of the vendor who carry on such activities were considered,

ii.1.  the aggregate of all amounts each of which is the portion of a salary or wages paid by the vendor to an employee in respect of a pay period, ended in the vendor’s base period, for which the employee is an eligible employee, that may reasonably be attributed to a given activity (in this section referred to as a “recognized activity in respect of a resource region”) that is not an activity described in any of paragraphs a and b to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1, an activity that is carried on in a region described in paragraph a.1 or e of the definition of that expression, enacted by subparagraph b.1 of the seventh paragraph of section 1029.8.36.72.82.1, and that is described in that paragraph a.1 or e, or an activity described in the definition of “Saguenay–Lac-Saint-Jean region” in the first paragraph of section 1029.8.36.72.82.1, is deemed, for the purposes of subparagraph 2 of subparagraph i of subparagraph a.1 of the first paragraph of sections 1029.8.36.72.82.3.2 and 1029.8.36.72.82.3.3 and subparagraph ii of paragraph a of section 1029.8.36.72.82.4.2, to be equal to the amount by which that amount otherwise determined exceeds the amount that would be determined by the formula in subparagraph i if, for the purposes of subparagraph a of the second paragraph, only the employees of the vendor who carry on such an activity were considered,

iii.  the aggregate of all amounts each of which is the salary or wages paid by the vendor to an employee in respect of a pay period, ended in the particular calendar year, for which the employee is an eligible employee, is deemed, for the purposes of subparagraph i of subparagraph a of the first paragraph of sections 1029.8.36.72.82.2, 1029.8.36.72.82.3, 1029.8.36.72.82.3.2 and 1029.8.36.72.82.3.3 and subparagraph a of the first paragraph of section 1029.8.36.72.82.4, to be equal to the amount by which that amount otherwise determined exceeds the amount determined by the formula

B × G,

iv.  the aggregate of all amounts each of which is the portion of a salary or wages paid by the vendor to an employee in respect of a pay period, ended in the particular calendar year, for which the employee is an eligible employee, that may reasonably be attributed to activities that are referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1, is deemed, for the purposes of subparagraph i of subparagraph a.1 of the first paragraph of sections 1029.8.36.72.82.2 and 1029.8.36.72.82.3 and paragraph a of section 1029.8.36.72.82.4.1, to be equal to the amount by which that amount otherwise determined exceeds the amount that would be determined by the formula in subparagraph iii if, for the purposes of subparagraph b of the second paragraph, only the employees of the vendor who carry on such activities were considered,

iv.1.  the aggregate of all amounts each of which is the portion of a salary or wages paid by the vendor to an employee in respect of a pay period, ended in the particular calendar year, for which the employee is an eligible employee, that may reasonably be attributed to a recognized activity in respect of a resource region, is deemed, for the purposes of subparagraph i of subparagraph a.1 of the first paragraph of sections 1029.8.36.72.82.3.2 and 1029.8.36.72.82.3.3 and paragraph a of section 1029.8.36.72.82.4.2, to be equal to the amount by which that amount otherwise determined exceeds the amount that would be determined by the formula in subparagraph iii if, for the purposes of subparagraph b of the second paragraph, only the employees of the vendor who carry on such an activity were considered,

v.  the base amount of the vendor is deemed to be equal to the amount by which that amount otherwise determined exceeds the amount determined by the formula

C × G,

vi.  the amount that would be the vendor’s base amount if, for the purposes of the definition of “base amount” in the first paragraph of section 1029.8.36.72.82.1, only the portion of the salary or wages of an employee that may reasonably be attributed to activities referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1 were considered, is deemed to be equal to the amount by which that amount determined without reference to subparagraph v exceeds the amount that would be determined by the formula in subparagraph v if, for the purposes of subparagraph c of the second paragraph, only the employees of the vendor who carry on such activities were considered,

vi.1.  the amount that would be the vendor’s base amount if, for the purposes of the definition of “base amount” in the first paragraph of section 1029.8.36.72.82.1, only the portion of the salary or wages of an employee that may reasonably be attributed to a recognized activity in respect of a resource region were considered, is deemed to be equal to the amount by which that amount determined without reference to subparagraph v exceeds the amount that would be determined by the formula in subparagraph v if, for the purposes of subparagraph c of the second paragraph, only the employees of the vendor who carry on such an activity were considered,

vii.  the eligible amount of the vendor for the particular calendar year is deemed to be equal to the amount by which that amount otherwise determined exceeds the amount determined by the formula

D × G,

viii.  the amount that would be the vendor’s eligible amount for the particular calendar year if, for the purposes of the definition of “eligible amount” in the first paragraph of section 1029.8.36.72.82.1, only the portion of the salary or wages of an employee that may reasonably be attributed to activities referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1 were considered, is deemed to be equal to the amount by which that amount determined without reference to subparagraph vii exceeds the amount that would be determined by the formula in subparagraph vii if, for the purposes of subparagraph d of the second paragraph, only the employees of the vendor who carry on such activities were considered, and

ix.  the amount that would be the vendor’s eligible amount for the particular calendar year if, for the purposes of the definition of “eligible amount” in the first paragraph of section 1029.8.36.72.82.1, only the portion of the salary or wages of an employee that may reasonably be attributed to a recognized activity in respect of a resource region were considered, is deemed to be equal to the amount by which that amount determined without reference to subparagraph vii exceeds the amount that would be determined by the formula in subparagraph vii if, for the purposes of subparagraph d of the second paragraph, only the employees of the vendor who carry on such an activity were considered;

(b)  if the particular corporation is a corporation with which the vendor was associated at the end of the particular calendar year, the following rules apply:

i.  the amount that is the aggregate referred to in subparagraph 2 of subparagraph ii of subparagraph a of the first paragraph of section 1029.8.36.72.82.3 or 1029.8.36.72.82.3.3 or in subparagraph ii of subparagraph c of the first paragraph of section 1029.8.36.72.82.4, as the case may be, determined in respect of the vendor, is deemed to be equal to the amount by which that amount determined without reference to this subparagraph i exceeds the amount determined by the formula

E × G,

ii.  the amount that is the aggregate referred to in subparagraph 2 of subparagraph ii of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.3 or in subparagraph ii of paragraph c of section 1029.8.36.72.82.4.1, determined in respect of the vendor, is deemed to be equal to the amount by which that amount determined without reference to this subparagraph exceeds the amount that would be determined by the formula in subparagraph i if, for the purposes of subparagraph e of the second paragraph, only the employees of the vendor who carry on activities referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1 were considered,

ii.1.  the amount that is the aggregate referred to in subparagraph 2 of subparagraph ii of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.3.3 or in subparagraph ii of paragraph c of section 1029.8.36.72.82.4.2, determined in respect of the vendor, is deemed to be equal to the amount by which that amount determined without reference to this subparagraph ii.1 exceeds the amount that would be determined by the formula in subparagraph i if, for the purposes of subparagraph e of the second paragraph, only the employees of the vendor who carry on a recognized activity in respect of a resource region were considered,

iii.  the amount that is the second aggregate mentioned in the portion of subparagraph ii of subparagraph a of the first paragraph of section 1029.8.36.72.82.3 or 1029.8.36.72.82.3.3 before subparagraph 1 or in the portion of subparagraph c of the first paragraph of section 1029.8.36.72.82.4 before subparagraph i, as the case may be, determined in respect of the vendor for the particular calendar year, is deemed to be equal to the amount by which that amount determined without reference to this subparagraph iii exceeds the amount determined by the formula

F × G,

iv.  the amount that is the second aggregate mentioned in the portion of subparagraph ii of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.3 before subparagraph 1 or in the portion of paragraph c of section 1029.8.36.72.82.4.1 before subparagraph i, determined in respect of the vendor for the particular calendar year, is deemed to be equal to the amount by which that amount determined without reference to this subparagraph exceeds the amount that would be determined by the formula in subparagraph iii if, for the purposes of subparagraph f of the second paragraph, only the employees of the vendor who carry on activities referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1 were considered, and

v.  the amount that is the second aggregate mentioned in the portion of subparagraph ii of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.3.3 before subparagraph 1 or in the portion of paragraph c of section 1029.8.36.72.82.4.2 before subparagraph i, determined in respect of the vendor for the particular calendar year, is deemed to be equal to the amount by which that amount determined without reference to this subparagraph v exceeds the amount that would be determined by the formula in subparagraph iii if, for the purposes of subparagraph f of the second paragraph, only the employees of the vendor who carry on a recognized activity in respect of a resource region were considered;

(c)  if the particular corporation is the purchaser, the purchaser is deemed

i.  to have paid, for the purposes of subparagraph 2 of subparagraph i of subparagraph a of the first paragraph of section 1029.8.36.72.82.2, 1029.8.36.72.82.3, 1029.8.36.72.82.3.2 or 1029.8.36.72.82.3.3 or subparagraph ii of subparagraph a of the first paragraph of section 1029.8.36.72.82.4, as the case may be, to employees, in respect of a pay period, ended in the purchaser’s base period, for which the employees are eligible employees, the amount determined by the formula

A × G,

ii.  to have paid, for the purposes of subparagraph 2 of subparagraph i of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.2 or 1029.8.36.72.82.3 or subparagraph ii of paragraph a of section 1029.8.36.72.82.4.1, as the case may be, to employees, in respect of a pay period, ended in the purchaser’s base period, for which the employees are eligible employees, the amount that would be determined by the formula in subparagraph i if, for the purposes of subparagraph a of the second paragraph, only the employees of the vendor who carry on activities referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1 were considered,

ii.1.  to have paid, for the purposes of subparagraph 2 of subparagraph i of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.3.2 or 1029.8.36.72.82.3.3 or subparagraph ii of paragraph a of section 1029.8.36.72.82.4.2, as the case may be, to employees, in respect of a pay period, ended in the purchaser’s base period, for which the employees are eligible employees, the amount that would be determined by the formula in subparagraph i if, for the purposes of subparagraph a of the second paragraph, only the employees of the vendor who carry on a recognized activity in respect of a resource region were considered,

iii.  to have paid, for the purposes of subparagraph i of subparagraph a of the first paragraph of section 1029.8.36.72.82.2, 1029.8.36.72.82.3, 1029.8.36.72.82.3.2 or 1029.8.36.72.82.3.3 or subparagraph a of the first paragraph of section 1029.8.36.72.82.4, as the case may be, to employees in respect of a pay period, ended in the particular calendar year, for which the employees are eligible employees, the amount determined by the formula

B × G,

iv.  to have paid, for the purposes of subparagraph i of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.2 or 1029.8.36.72.82.3 or paragraph a of section 1029.8.36.72.82.4.1, as the case may be, to employees in respect of a pay period, ended in the particular calendar year, for which the employees are eligible employees, the amount that would be determined by the formula in subparagraph iii if, for the purposes of subparagraph b of the second paragraph, only the employees of the vendor who carry on activities referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1 were considered,

iv.1.  to have paid, for the purposes of subparagraph i of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.3.2 or 1029.8.36.72.82.3.3 or paragraph a of section 1029.8.36.72.82.4.2, as the case may be, to employees, in respect of a pay period, ended in the particular calendar year, for which the employees are eligible employees, the amount that would be determined by the formula in subparagraph iii if, for the purposes of subparagraph b of the second paragraph, only the employees of the vendor who carry on a recognized activity in respect of a resource region were considered,

v.  to have a base amount equal to the aggregate of

(1)  the purchaser’s base amount otherwise determined, and

(2)  the amount determined by the formula

C × G,

vi.  to have an amount that would be the purchaser’s base amount if, for the purposes of the definition of “base amount” in the first paragraph of section 1029.8.36.72.82.1, only the portion of the salary or wages of an employee that may reasonably be attributed to activities referred to in any of paragraphs a to d of the definition of “eligible region” in that first paragraph were considered, that is equal to the aggregate of

(1)  the amount that would be the purchaser’s base amount if, for the purposes of the definition of “base amount” in the first paragraph of section 1029.8.36.72.82.1, only the portion of the salary or wages of an employee that may reasonably be attributed to activities referred to in any of paragraphs a to d of the definition of “eligible region” in that first paragraph were considered, and if no reference were made to subparagraph v or this subparagraph vi, and

(2)  the amount that would be determined by the formula in subparagraph 2 of subparagraph v if, for the purposes of subparagraph c of the second paragraph, only the employees of the vendor who carry on activities referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1 were considered,

vi.1.  to have an amount that would be the purchaser’s base amount if, for the purposes of the definition of “base amount” in the first paragraph of section 1029.8.36.72.82.1, only the portion of the salary or wages of an employee that may reasonably be attributed to a recognized activity in respect of a resource region were considered, that is equal to the aggregate of

(1)  the amount that would be the purchaser’s base amount if, for the purposes of the definition of “base amount” in the first paragraph of section 1029.8.36.72.82.1, only the portion of the salary or wages of an employee that may reasonably be attributed to a recognized activity in respect of a resource region were considered, and if no reference were made to subparagraph v or this subparagraph vi.1, and

(2)  the amount that would be determined by the formula in subparagraph 2 of subparagraph v if, for the purposes of subparagraph c of the second paragraph, only the employees of the vendor who carry on a recognized activity in respect of a resource region were considered,

vii.  to have an eligible amount for the particular calendar year equal to the aggregate of

(1)  the purchaser’s eligible amount otherwise determined for the particular calendar year, and

(2)  the amount determined by the formula

D × G,

viii.  to have an amount that would be the purchaser’s eligible amount for the particular calendar year if, for the purposes of the definition of “eligible amount” in the first paragraph of section 1029.8.36.72.82.1, only the portion of the salary or wages of an employee that may reasonably be attributed to activities referred to in any of paragraphs a to d of the definition of “eligible region” in that first paragraph were considered, that is equal to the aggregate of

(1)  the amount that would be the purchaser’s eligible amount for the particular calendar year if, for the purposes of the definition of “eligible amount” in the first paragraph of section 1029.8.36.72.82.1, only the portion of the salary or wages of an employee that may reasonably be attributed to activities referred to in any of paragraphs a to d of the definition of “eligible region” in that first paragraph were considered, and if no reference were made to subparagraph vii or this subparagraph viii, and

(2)  the amount that would be determined by the formula in subparagraph 2 of subparagraph vii if, for the purposes of subparagraph d of the second paragraph, only the employees of the vendor who carry on activities referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1 were considered, and

ix.  to have an amount that would be the purchaser’s eligible amount for the particular calendar year if, for the purposes of the definition of “eligible amount” in the first paragraph of section 1029.8.36.72.82.1, only the portion of the salary or wages of an employee that may reasonably be attributed to a recognized activity in respect of a resource region were considered, that is equal to the aggregate of

(1)  the amount that would be the purchaser’s eligible amount for the particular calendar year if, for the purposes of the definition of “eligible amount” in the first paragraph of section 1029.8.36.72.82.1, only the portion of the salary or wages of an employee that may reasonably be attributed to a recognized activity in respect of a resource region were considered, and if no reference were made to subparagraph vii or this subparagraph ix, and

(2)  the amount that would be determined by the formula in subparagraph 2 of subparagraph vii if, for the purposes of subparagraph d of the second paragraph, only the employees of the vendor who carry on a recognized activity in respect of a resource region were considered; and

(d)  if the particular corporation is a corporation that is associated with the purchaser at the end of the particular calendar year, the following rules apply:

i.  the amount that is the aggregate referred to in subparagraph 2 of subparagraph ii of subparagraph a of the first paragraph of section 1029.8.36.72.82.3 or 1029.8.36.72.82.3.3 or in subparagraph ii of subparagraph c of the first paragraph of section 1029.8.36.72.82.4, as the case may be, determined in respect of the purchaser, is deemed to be equal to the aggregate of

(1)  the amount of that aggregate determined without reference to this subparagraph i, and

(2)  the amount determined by the formula

E × G,

ii.  the amount that is the aggregate referred to in subparagraph 2 of subparagraph ii of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.3 or in subparagraph ii of paragraph c of section 1029.8.36.72.82.4.1, determined in respect of the purchaser, is deemed to be equal to the aggregate of

(1)  the amount of that aggregate determined without reference to this subparagraph ii, and

(2)  the amount that would be determined by the formula in subparagraph i if, for the purposes of subparagraph e of the second paragraph, only the employees of the vendor who carry on activities referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1 were considered,

ii.1.  the amount that is the aggregate referred to in subparagraph 2 of subparagraph ii of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.3.3 or in subparagraph ii of paragraph c of section 1029.8.36.72.82.4.2, determined in respect of the purchaser, is deemed to be equal to the aggregate of

(1)  the amount of that aggregate determined without reference to this subparagraph ii.1, and

(2)  the amount that would be determined by the formula in subparagraph i if, for the purposes of subparagraph e of the second paragraph, only the employees of the vendor who carry on a recognized activity in respect of a resource region were considered,

iii.  the amount that is the second aggregate mentioned in the portion of subparagraph ii of subparagraph a of the first paragraph of section 1029.8.36.72.82.3 or 1029.8.36.72.82.3.3 before subparagraph 1 or in the portion of subparagraph c of the first paragraph of section 1029.8.36.72.82.4 before subparagraph i, as the case may be, determined in respect of the purchaser for the particular calendar year, is deemed to be equal to the aggregate of

(1)  the amount of that aggregate determined without reference to this subparagraph iii for the particular calendar year, and

(2)  the amount determined by the formula

F × G,

iv.  the amount that is the second aggregate mentioned in the portion of subparagraph ii of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.3 before subparagraph 1 or in the portion of paragraph c of section 1029.8.36.72.82.4.1 before subparagraph i, determined in respect of the purchaser for the particular calendar year, is deemed to be equal to the aggregate of

(1)  the amount of that aggregate determined without reference to this subparagraph iv for the particular calendar year, and

(2)  the amount that would be determined by the formula in subparagraph iii if, for the purposes of subparagraph f of the second paragraph, only the employees of the vendor who carry on activities referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1 were considered, and

v.  the amount that is the second aggregate mentioned in the portion of subparagraph ii of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.3.3 before subparagraph 1 or in the portion of paragraph c of section 1029.8.36.72.82.4.2 before subparagraph i, determined in respect of the purchaser for the particular calendar year, is deemed to be equal to the aggregate of

(1)  the amount of that aggregate determined without reference to this subparagraph v for the particular calendar year, and

(2)  the amount that would be determined by the formula in subparagraph iii if, for the purposes of subparagraph f of the second paragraph, only the employees of the vendor who carry on a recognized activity in respect of a resource region were considered.

In the formulas in subparagraphs a to d of the first paragraph,

(a)  A is the aggregate of all amounts each of which is,

i.  for the purposes of subparagraph i of subparagraph a of the first paragraph, the salary or wages paid by the vendor to an employee in respect of a pay period, ended in the vendor’s base period, for which the employee is an eligible employee, and

ii.  for the purposes of subparagraph i of subparagraph c of the first paragraph,

(1)  if the activities referred to in the first paragraph relate to a recognized business of the vendor, the salary or wages paid by the vendor to an employee in respect of a pay period, ended in the vendor’s base period, for which the employee is an eligible employee,

(2)  if the activities referred to in the first paragraph do not relate to a recognized business of the vendor but relate to a recognized business of the purchaser, the salary or wages of an employee paid by the vendor in respect of a pay period, ended in the purchaser’s base period, in which the employee reports for work at an establishment of the vendor situated in a designated region of the vendor and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the purchaser for the year in respect of a recognized business, and

(3)  (subparagraph repealed);

(b)  B is the aggregate of all amounts each of which is,

i.  for the purposes of subparagraph iii of subparagraph a of the first paragraph, the salary or wages paid by the vendor to an employee in respect of a pay period, ended in the particular calendar year, for which the employee is an eligible employee, and

ii.  for the purposes of subparagraph iii of subparagraph c of the first paragraph,

(1)  if the activities referred to in the first paragraph relate to a recognized business of the vendor, the salary or wages paid by the vendor to an employee in respect of a pay period, ended in the particular calendar year, for which the employee is an eligible employee,

(2)  if the activities referred to in the first paragraph do not relate to a recognized business of the vendor but relate to a recognized business of the purchaser, the salary or wages of an employee paid by the vendor in respect of a pay period, ended in the particular calendar year, in which the employee reports for work at an establishment of the vendor situated in a designated region of the vendor and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the purchaser for the year in respect of a recognized business, and

(3)  (subparagraph repealed);

(c)  C is the aggregate of all amounts each of which is

i.  for the purposes of subparagraph v of subparagraph a of the first paragraph, the salary or wages paid by the vendor to an employee in respect of a pay period, ended in the vendor’s base period, for which the employee is an eligible employee, or the salary or wages of an employee of the vendor paid by the vendor in respect of a pay period, ended in the vendor’s base period, in which the employee reports for work at an establishment of the vendor situated in Québec but outside a designated region of the vendor and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the vendor for the year in respect of a recognized business, and

ii.  for the purposes of subparagraph 2 of subparagraph v of subparagraph c of the first paragraph,

(1)  if the activities referred to in the first paragraph relate to a recognized business of the vendor, the salary or wages paid by the vendor to an employee in respect of a pay period, ended in the vendor’s base period, for which the employee is an eligible employee, or the salary or wages of an employee paid by the vendor in respect of a pay period, ended in the vendor’s base period, in which the employee reports for work at an establishment of the vendor situated in Québec but outside a designated region of the vendor and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the vendor for the year in respect of a recognized business,

(2)  if the activities referred to in the first paragraph do not relate to a recognized business of the vendor but relate to a recognized business of the purchaser, the salary or wages of an employee paid by the vendor in respect of a pay period, ended in the purchaser’s base period, in which the employee reports for work at an establishment of the vendor situated in Québec and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the purchaser for the year in respect of a recognized business, and

(3)  (subparagraph repealed);

(d)  D is the aggregate of all amounts each of which is

i.  for the purposes of subparagraph vii of subparagraph a of the first paragraph, the salary or wages paid by the vendor to an employee in respect of a pay period, ended in the particular calendar year, for which the employee is an eligible employee, or the salary or wages paid by the vendor to an employee in respect of a pay period that ended in the particular calendar year, other than an eligible employee of the vendor for the pay period, if, in that pay period, the employee reports for work at an establishment of the vendor situated in Québec and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the vendor for the year in respect of a recognized business, and

ii.  for the purposes of subparagraph 2 of subparagraph vii of subparagraph c of the first paragraph,

(1)  if the activities referred to in the first paragraph relate to a recognized business of the vendor, the salary or wages paid by the vendor to an employee in respect of a pay period, ended in the particular calendar year, for which the employee is an eligible employee, or the salary or wages paid by the vendor to an employee in respect of a pay period that ended in the particular calendar year, other than an eligible employee of the vendor for the pay period, if, in that pay period, the employee reports for work at an establishment of the vendor situated in Québec and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the vendor for the year in respect of a recognized business,

(2)  if the activities referred to in the first paragraph do not relate to a recognized business of the vendor but relate to a recognized business of the purchaser, the salary or wages of an employee paid by the vendor in respect of a pay period, ended in the particular calendar year, in which the employee reports for work at an establishment of the vendor situated in Québec and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the purchaser for the year in respect of a recognized business, and

(3)  (subparagraph repealed);

(e)  E is the aggregate of all amounts each of which is the salary or wages of an employee paid by the vendor in respect of a pay period, ended in the particular corporation’s base period, in which the employee reports for work at an establishment of the vendor situated in Québec and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the particular corporation for the year in respect of a recognized business, except if an amount is included, in respect of the employee, in relation to the vendor, in computing an amount determined under this subparagraph, in relation to another corporation that carries on a recognized business;

(f)  F is the aggregate of all amounts each of which is the salary or wages of an employee paid by the vendor in respect of a pay period, ended in the particular calendar year, in which the employee reports for work at an establishment of the vendor situated in Québec and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the particular corporation for the year in respect of a recognized business, except if an amount is included, in respect of the employee, in relation to the vendor, in computing an amount determined under this subparagraph, in relation to another corporation that carries on a recognized business; and

(g)  G is the proportion that the number of the vendor’s employees referred to in any of subparagraphs a to f, as the case may be, who were assigned to the carrying on of part of the activities that diminished or ceased at the particular time is of the number of the vendor’s employees assigned to those activities immediately before the particular time.

2005, c. 23, s. 209; 2006, c. 36, s. 177; 2009, c. 5, s. 447; 2009, c. 15, s. 294; 2010, c. 25, s. 158; 2011, c. 1, s. 78.

2010-10-27

1029.8.36.72.82.10.1. Subject to sections 1029.8.36.72.82.8 and 1029.8.36.72.82.9, if, at a particular time in a particular calendar year that ends in a particular taxation year or in a preceding taxation year, the activities carried on by a person or partnership (in this section referred to as the “vendor”) in relation to a recognized business or a business that could qualify as a recognized business if it were carried on in a designated region, diminish or cease and it may reasonably be considered that, as a result, another person or partnership (in this section referred to as the “purchaser”) that is associated with the vendor at the particular time, begins, after the particular time, to carry on similar activities in the course of carrying on such a business, or increases, after the particular time, the scope of similar activities carried on in the course of carrying on such a business, the following rules apply for the purpose of determining the amount that a particular corporation is deemed to have paid to the Minister under this division for the particular taxation year:

(a)  if the particular corporation is the vendor,

i.  the aggregate of all amounts each of which is the salary or wages paid by the vendor to an employee in respect of a pay period, ended in the vendor’s base period, for which the employee is an eligible employee, is deemed, for the purposes of subparagraph 2 of subparagraph i of subparagraph a of the first paragraph of sections 1029.8.36.72.82.2, 1029.8.36.72.82.3, 1029.8.36.72.82.3.2 and 1029.8.36.72.82.3.3 and subparagraph ii of subparagraph a of the first paragraph of section 1029.8.36.72.82.4, to be equal to the amount by which that amount otherwise determined exceeds the amount determined by the formula

A × G,

ii.  the aggregate of all amounts each of which is the portion of a salary or wages paid by the vendor to an employee in respect of a pay period, ended in the vendor’s base period, for which the employee is an eligible employee, that may reasonably be attributed to activities of the employee that are referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1, is deemed, for the purposes of subparagraph 2 of subparagraph i of subparagraph a.1 of the first paragraph of sections 1029.8.36.72.82.2 and 1029.8.36.72.82.3 and subparagraph ii of paragraph a of section 1029.8.36.72.82.4.1, to be equal to the amount by which that amount otherwise determined exceeds the amount that would be determined by the formula in subparagraph i if, for the purposes of subparagraph a of the second paragraph, only the employees of the vendor who carry on such activities were considered,

ii.1.  the aggregate of all amounts each of which is the portion of a salary or wages paid by the vendor to an employee in respect of a pay period, ended in the vendor’s base period, for which the employee is an eligible employee, that may reasonably be attributed to a given activity (in this section referred to as a “recognized activity in respect of a resource region”) that is not an activity described in any of paragraphs a and b to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1, an activity that is carried on in a region described in paragraph a.1 or e of the definition of that expression, enacted by subparagraph b.1 of the seventh paragraph of section 1029.8.36.72.82.1, and that is described in that paragraph a.1 or e, or an activity described in the definition of “Saguenay–Lac-Saint-Jean region” in the first paragraph of section 1029.8.36.72.82.1, is deemed, for the purposes of subparagraph 2 of subparagraph i of subparagraph a.1 of the first paragraph of sections 1029.8.36.72.82.3.2 and 1029.8.36.72.82.3.3 and subparagraph ii of paragraph a of section 1029.8.36.72.82.4.2, to be equal to the amount by which that amount otherwise determined exceeds the amount that would be determined by the formula in subparagraph i if, for the purposes of subparagraph a of the second paragraph, only the employees of the vendor who carry on such an activity were considered,

iii.  the aggregate of all amounts each of which is the salary or wages paid by the vendor to an employee in respect of a pay period, ended in the particular calendar year, for which the employee is an eligible employee, is deemed, for the purposes of subparagraph i of subparagraph a of the first paragraph of sections 1029.8.36.72.82.2, 1029.8.36.72.82.3, 1029.8.36.72.82.3.2 and 1029.8.36.72.82.3.3 and subparagraph a of the first paragraph of section 1029.8.36.72.82.4, to be equal to the amount by which that amount otherwise determined exceeds the amount determined by the formula

B × G,

iv.  the aggregate of all amounts each of which is the portion of a salary or wages paid by the vendor to an employee in respect of a pay period, ended in the particular calendar year, for which the employee is an eligible employee, that may reasonably be attributed to activities of the employee that are referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1, is deemed, for the purposes of subparagraph i of subparagraph a.1 of the first paragraph of sections 1029.8.36.72.82.2 and 1029.8.36.72.82.3 and paragraph a of section 1029.8.36.72.82.4.1, to be equal to the amount by which that amount otherwise determined exceeds the amount that would be determined by the formula in subparagraph iii if, for the purposes of subparagraph b of the second paragraph, only the employees of the vendor who carry on such activities were considered,

iv.1.  the aggregate of all amounts each of which is the portion of a salary or wages paid by the vendor to an employee in respect of a pay period, ended in the particular calendar year, for which the employee is an eligible employee, that may reasonably be attributed to a given activity of the employee that is a recognized activity in respect of a resource region, is deemed, for the purposes of subparagraph i of subparagraph a.1 of the first paragraph of sections 1029.8.36.72.82.3.2 and 1029.8.36.72.82.3.3 and paragraph a of section 1029.8.36.72.82.4.2, to be equal to the amount by which that amount otherwise determined exceeds the amount that would be determined by the formula in subparagraph iii if, for the purposes of subparagraph b of the second paragraph, only the employees of the vendor who carry on such an activity were considered,

v.  the base amount of the vendor is deemed to be equal to the amount by which that amount otherwise determined exceeds the amount determined by the formula

C × G,

vi.  the amount that would be the vendor’s base amount if, for the purposes of the definition of “base amount” in the first paragraph of section 1029.8.36.72.82.1, only the portion of the salary or wages of an employee that may reasonably be attributed to activities referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1 were considered, is deemed to be equal to the amount by which that amount determined without reference to subparagraph v exceeds the amount that would be determined by the formula in subparagraph v if, for the purposes of subparagraph c of the second paragraph, only the employees of the vendor who carry on such activities were considered,

vi.1.  the amount that would be the vendor’s base amount if, for the purposes of the definition of “base amount” in the first paragraph of section 1029.8.36.72.82.1, only the portion of the salary or wages of an employee that may reasonably be attributed to a recognized activity in respect of a resource region were considered, is deemed to be equal to the amount by which that amount determined without reference to subparagraph v exceeds the amount that would be determined by the formula in subparagraph v if, for the purposes of subparagraph c of the second paragraph, only the employees of the vendor who carry on such an activity were considered,

vii.  the eligible amount of the vendor for the particular calendar year is deemed to be equal to the amount by which that amount otherwise determined exceeds the amount determined by the formula

D × G,

viii.  the amount that would be the vendor’s eligible amount for the particular calendar year if, for the purposes of the definition of “eligible amount” in the first paragraph of section 1029.8.36.72.82.1, only the portion of the salary or wages of an employee that may reasonably be attributed to activities referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1 were considered, is deemed to be equal to the amount by which that amount determined without reference to subparagraph vii exceeds the amount that would be determined by the formula in subparagraph vii if, for the purposes of subparagraph d of the second paragraph, only the employees of the vendor who carry on such activities were considered, and

ix.  the amount that would be the vendor’s eligible amount for the particular calendar year if, for the purposes of the definition of “eligible amount” in the first paragraph of section 1029.8.36.72.82.1, only the portion of the salary or wages of an employee that may reasonably be attributed to a recognized activity in respect of a resource region were considered, is deemed to be equal to the amount by which that amount determined without reference to subparagraph vii exceeds the amount that would be determined by the formula in subparagraph vii if, for the purposes of subparagraph d of the second paragraph, only the employees of the vendor who carry on such an activity were considered;

(b)  if the particular corporation is a corporation with which the vendor was associated at the end of the particular calendar year, the following rules apply:

i.  the amount that is the aggregate referred to in subparagraph 2 of subparagraph ii of subparagraph a of the first paragraph of section 1029.8.36.72.82.3 or 1029.8.36.72.82.3.3 or in subparagraph ii of subparagraph c of the first paragraph of section 1029.8.36.72.82.4, as the case may be, determined in respect of the vendor, is deemed to be equal to the amount by which that amount determined without reference to this subparagraph i exceeds the amount determined by the formula

E × G,

ii.  the amount that is the aggregate referred to in subparagraph 2 of subparagraph ii of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.3 or in subparagraph ii of paragraph c of section 1029.8.36.72.82.4.1, determined in respect of the vendor, is deemed to be equal to the amount by which that amount determined without reference to this subparagraph exceeds the amount that would be determined by the formula in subparagraph i if, for the purposes of subparagraph e of the second paragraph, only the employees of the vendor who carry on activities referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1 were considered,

ii.1.  the amount that is the aggregate referred to in subparagraph 2 of subparagraph ii of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.3.3 or in subparagraph ii of paragraph c of section 1029.8.36.72.82.4.2, determined in respect of the vendor, is deemed to be equal to the amount by which that amount determined without reference to this subparagraph ii.1 exceeds the amount that would be determined by the formula in subparagraph i if, for the purposes of subparagraph e of the second paragraph, only the employees of the vendor who carry on a recognized activity in respect of a resource region were considered,

iii.  the amount that is the second aggregate mentioned in the portion of subparagraph ii of subparagraph a of the first paragraph of section 1029.8.36.72.82.3 or 1029.8.36.72.82.3.3 before subparagraph 1 or in the portion of subparagraph c of the first paragraph of section 1029.8.36.72.82.4 before subparagraph i, as the case may be, determined in respect of the vendor for the particular calendar year, is deemed to be equal to the amount by which that amount determined without reference to this subparagraph iii exceeds the amount determined by the formula

F × G,

iv.  the amount that is the second aggregate mentioned in the portion of subparagraph ii of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.3 before subparagraph 1 or in the portion of paragraph c of section 1029.8.36.72.82.4.1 before subparagraph i, determined in respect of the vendor for the particular calendar year, is deemed to be equal to the amount by which that amount determined without reference to this subparagraph exceeds the amount that would be determined by the formula in subparagraph iii if, for the purposes of subparagraph f of the second paragraph, only the employees of the vendor who carry on activities referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1 were considered, and

v.  the amount that is the second aggregate mentioned in the portion of subparagraph ii of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.3.3 before subparagraph 1 or in the portion of paragraph c of section 1029.8.36.72.82.4.2 before subparagraph i, determined in respect of the vendor for the particular calendar year, is deemed to be equal to the amount by which that amount determined without reference to this subparagraph v exceeds the amount that would be determined by the formula in subparagraph iii if, for the purposes of subparagraph f of the second paragraph, only the employees of the vendor who carry on a recognized activity in respect of a resource region were considered;

(c)  if the particular corporation is the purchaser, the purchaser is deemed

i.  to have paid, for the purposes of subparagraph 2 of subparagraph i of subparagraph a of the first paragraph of section 1029.8.36.72.82.2, 1029.8.36.72.82.3, 1029.8.36.72.82.3.2 or 1029.8.36.72.82.3.3 or subparagraph ii of subparagraph a of the first paragraph of section 1029.8.36.72.82.4, as the case may be, to employees, in respect of a pay period, ended in the purchaser’s base period, for which the employees are eligible employees, the amount determined by the formula

A × G,

ii.  to have paid, for the purposes of subparagraph 2 of subparagraph i of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.2 or 1029.8.36.72.82.3 or subparagraph ii of paragraph a of section 1029.8.36.72.82.4.1, as the case may be, to employees, in respect of a pay period, ended in the purchaser’s base period, for which the employees are eligible employees, the amount that would be determined by the formula in subparagraph i if, for the purposes of subparagraph a of the second paragraph, only the employees of the vendor who carry on activities referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1 were considered,

ii.1.  to have paid, for the purposes of subparagraph 2 of subparagraph i of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.3.2 or 1029.8.36.72.82.3.3 or subparagraph ii of paragraph a of section 1029.8.36.72.82.4.2, as the case may be, to employees, in respect of a pay period, ended in the purchaser’s base period, for which the employees are eligible employees, the amount that would be determined by the formula in subparagraph i if, for the purposes of subparagraph a of the second paragraph, only the employees of the vendor who carry on a recognized activity in respect of a resource region were considered,

iii.  to have paid, for the purposes of subparagraph i of subparagraph a of the first paragraph of section 1029.8.36.72.82.2, 1029.8.36.72.82.3, 1029.8.36.72.82.3.2 or 1029.8.36.72.82.3.3 or subparagraph a of the first paragraph of section 1029.8.36.72.82.4, as the case may be, to employees in respect of a pay period, ended in the particular calendar year, for which the employees are eligible employees, the amount determined by the formula

B × G,

iv.  to have paid, for the purposes of subparagraph i of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.2 or 1029.8.36.72.82.3 or paragraph a of section 1029.8.36.72.82.4.1, as the case may be, to employees in respect of a pay period, ended in the particular calendar year, for which the employees are eligible employees, the amount that would be determined by the formula in subparagraph iii if, for the purposes of subparagraph b of the second paragraph, only the employees of the vendor who carry on activities referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1 were considered,

iv.1.  to have paid, for the purposes of subparagraph i of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.3.2 or 1029.8.36.72.82.3.3 or paragraph a of section 1029.8.36.72.82.4.2, as the case may be, to employees, in respect of a pay period, ended in the particular calendar year, for which the employees are eligible employees, the amount that would be determined by the formula in subparagraph iii if, for the purposes of subparagraph b of the second paragraph, only the employees of the vendor who carry on a recognized activity in respect of a resource region were considered,

v.  to have a base amount equal to the aggregate of

(1)  the purchaser’s base amount otherwise determined, and

(2)  the amount determined by the formula

C × G,

vi.  to have an amount that would be the purchaser’s base amount if, for the purposes of the definition of “base amount” in the first paragraph of section 1029.8.36.72.82.1, only the portion of the salary or wages of an employee that may reasonably be attributed to activities referred to in any of paragraphs a to d of the definition of “eligible region” in that first paragraph were considered, that is equal to the aggregate of

(1)  the amount that would be the purchaser’s base amount if, for the purposes of the definition of “base amount” in the first paragraph of section 1029.8.36.72.82.1, only the portion of the salary or wages of an employee that may reasonably be attributed to activities referred to in any of paragraphs a to d of the definition of “eligible region” in that first paragraph were considered, and if no reference were made to subparagraph v or this subparagraph vi, and

(2)  the amount that would be determined by the formula in subparagraph 2 of subparagraph v if, for the purposes of subparagraph c of the second paragraph, only the employees of the vendor who carry on activities referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1 were considered,

vi.1.  to have an amount that would be the purchaser’s base amount if, for the purposes of the definition of “base amount” in the first paragraph of section 1029.8.36.72.82.1, only the portion of the salary or wages of an employee that may reasonably be attributed to a recognized activity in respect of a resource region were considered, that is equal to the aggregate of

(1)  the amount that would be the purchaser’s base amount if, for the purposes of the definition of “base amount” in the first paragraph of section 1029.8.36.72.82.1, only the portion of the salary or wages of an employee that may reasonably be attributed to a recognized activity in respect of a resource region were considered, and if no reference were made to subparagraph v or this subparagraph vi.1, and

(2)  the amount that would be determined by the formula in subparagraph 2 of subparagraph v if, for the purposes of subparagraph c of the second paragraph, only the employees of the vendor who carry on a recognized activity in respect of a resource region were considered,

vii.  to have an eligible amount for the particular calendar year equal to the aggregate of

(1)  the purchaser’s eligible amount otherwise determined for the particular calendar year, and

(2)  the amount determined by the formula

D × G,

viii.  to have an amount that would be the purchaser’s eligible amount for the particular calendar year if, for the purposes of the definition of “eligible amount” in the first paragraph of section 1029.8.36.72.82.1, only the portion of the salary or wages of an employee that may reasonably be attributed to activities referred to in any of paragraphs a to d of the definition of “eligible region” in that first paragraph were considered, that is equal to the aggregate of

(1)  the amount that would be the purchaser’s eligible amount for the particular calendar year if, for the purposes of the definition of “eligible amount” in the first paragraph of section 1029.8.36.72.82.1, only the portion of the salary or wages of an employee that may reasonably be attributed to activities referred to in any of paragraphs a to d of the definition of “eligible region” in that first paragraph were considered, and if no reference were made to subparagraph vii or this subparagraph viii, and

(2)  the amount that would be determined by the formula in subparagraph 2 of subparagraph vii if, for the purposes of subparagraph d of the second paragraph, only the employees of the vendor who carry on activities referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1 were considered, and

ix.  to have an amount that would be the purchaser’s eligible amount for the particular calendar year if, for the purposes of the definition of “eligible amount” in the first paragraph of section 1029.8.36.72.82.1, only the portion of the salary or wages of an employee that may reasonably be attributed to a recognized activity in respect of a resource region were considered, that is equal to the aggregate of

(1)  the amount that would be the purchaser’s eligible amount for the particular calendar year if, for the purposes of the definition of “eligible amount” in the first paragraph of section 1029.8.36.72.82.1, only the portion of the salary or wages of an employee that may reasonably be attributed to a recognized activity in respect of a resource region were considered, and if no reference were made to subparagraph vii or this subparagraph ix, and

(2)  the amount that would be determined by the formula in subparagraph 2 of subparagraph vii if, for the purposes of subparagraph d of the second paragraph, only the employees of the vendor who carry on a recognized activity in respect of a resource region were considered; and

(d)  if the particular corporation is a corporation that is associated with the purchaser at the end of the particular calendar year, the following rules apply:

i.  the amount that is the aggregate referred to in subparagraph 2 of subparagraph ii of subparagraph a of the first paragraph of section 1029.8.36.72.82.3 or 1029.8.36.72.82.3.3 or in subparagraph ii of subparagraph c of the first paragraph of section 1029.8.36.72.82.4, as the case may be, determined in respect of the purchaser, is deemed to be equal to the aggregate of

(1)  the amount of that aggregate determined without reference to this subparagraph i, and

(2)  the amount determined by the formula

E × G,

ii.  the amount that is the aggregate referred to in subparagraph 2 of subparagraph ii of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.3 or in subparagraph ii of paragraph c of section 1029.8.36.72.82.4.1, determined in respect of the purchaser, is deemed to be equal to the aggregate of

(1)  the amount of that aggregate determined without reference to this subparagraph ii, and

(2)  the amount that would be determined by the formula in subparagraph i if, for the purposes of subparagraph e of the second paragraph, only the employees of the vendor who carry on activities referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1 were considered,

ii.1.  the amount that is the aggregate referred to in subparagraph 2 of subparagraph ii of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.3.3 or in subparagraph ii of paragraph c of section 1029.8.36.72.82.4.2, determined in respect of the purchaser, is deemed to be equal to the aggregate of

(1)  the amount of that aggregate determined without reference to this subparagraph ii.1, and

(2)  the amount that would be determined by the formula in subparagraph i if, for the purposes of subparagraph e of the second paragraph, only the employees of the vendor who carry on a recognized activity in respect of a resource region were considered,

iii.  the amount that is the second aggregate mentioned in the portion of subparagraph ii of subparagraph a of the first paragraph of section 1029.8.36.72.82.3 or 1029.8.36.72.82.3.3 before subparagraph 1 or in the portion of subparagraph c of the first paragraph of section 1029.8.36.72.82.4 before subparagraph i, as the case may be, determined in respect of the purchaser for the particular calendar year, is deemed to be equal to the aggregate of

(1)  the amount of that aggregate determined without reference to this subparagraph iii for the particular calendar year, and

(2)  the amount determined by the formula

F × G,

iv.  the amount that is the second aggregate mentioned in the portion of subparagraph ii of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.3 before subparagraph 1 or in the portion of paragraph c of section 1029.8.36.72.82.4.1 before subparagraph i, determined in respect of the purchaser for the particular calendar year, is deemed to be equal to the aggregate of

(1)  the amount of that aggregate determined without reference to this subparagraph iv for the particular calendar year, and

(2)  the amount that would be determined by the formula in subparagraph iii if, for the purposes of subparagraph f of the second paragraph, only the employees of the vendor who carry on activities referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1 were considered, and

v.  the amount that is the second aggregate mentioned in the portion of subparagraph ii of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.3.3 before subparagraph 1 or in the portion of paragraph c of section 1029.8.36.72.82.4.2 before subparagraph i, determined in respect of the purchaser for the particular calendar year, is deemed to be equal to the aggregate of

(1)  the amount of that aggregate determined without reference to this subparagraph v for the particular calendar year, and

(2)  the amount that would be determined by the formula in subparagraph iii if, for the purposes of subparagraph f of the second paragraph, only the employees of the vendor who carry on a recognized activity in respect of a resource region were considered.

In the formulas in subparagraphs a to d of the first paragraph,

(a)  A is the aggregate of all amounts each of which is,

i.  for the purposes of subparagraph i of subparagraph a of the first paragraph, the salary or wages paid by the vendor to an employee in respect of a pay period, ended in the vendor’s base period, for which the employee is an eligible employee, and

ii.  for the purposes of subparagraph i of subparagraph c of the first paragraph,

(1)  if the activities referred to in the first paragraph relate to a recognized business of the vendor, the salary or wages paid by the vendor to an employee in respect of a pay period, ended in the vendor’s base period, for which the employee is an eligible employee,

(2)  if the activities referred to in the first paragraph do not relate to a recognized business of the vendor but relate to a recognized business of the purchaser, the salary or wages of an employee paid by the vendor in respect of a pay period, ended in the purchaser’s base period, in which the employee reports for work at an establishment of the vendor situated in a designated region of the vendor and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the purchaser for the year in respect of a recognized business, and

(3)  (subparagraph repealed);

(b)  B is the aggregate of all amounts each of which is,

i.  for the purposes of subparagraph iii of subparagraph a of the first paragraph, the salary or wages paid by the vendor to an employee in respect of a pay period, ended in the particular calendar year, for which the employee is an eligible employee, and

ii.  for the purposes of subparagraph iii of subparagraph c of the first paragraph,

(1)  if the activities referred to in the first paragraph relate to a recognized business of the vendor, the salary or wages paid by the vendor to an employee in respect of a pay period, ended in the particular calendar year, for which the employee is an eligible employee,

(2)  if the activities referred to in the first paragraph do not relate to a recognized business of the vendor but relate to a recognized business of the purchaser, the salary or wages of an employee paid by the vendor in respect of a pay period, ended in the particular calendar year, in which the employee reports for work at an establishment of the vendor situated in a designated region of the vendor and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the purchaser for the year in respect of a recognized business, and

(3)  (subparagraph repealed);

(c)  C is the aggregate of all amounts each of which is

i.  for the purposes of subparagraph v of subparagraph a of the first paragraph, the salary or wages paid by the vendor to an employee in respect of a pay period, ended in the vendor’s base period, for which the employee is an eligible employee, or the salary or wages of an employee of the vendor paid by the vendor in respect of a pay period, ended in the vendor’s base period, in which the employee reports for work at an establishment of the vendor situated in Québec but outside a designated region of the vendor and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the vendor for the year in respect of a recognized business, and

ii.  for the purposes of subparagraph 2 of subparagraph v of subparagraph c of the first paragraph,

(1)  if the activities referred to in the first paragraph relate to a recognized business of the vendor, the salary or wages paid by the vendor to an employee in respect of a pay period, ended in the vendor’s base period, for which the employee is an eligible employee, or the salary or wages of an employee paid by the vendor in respect of a pay period, ended in the vendor’s base period, in which the employee reports for work at an establishment of the vendor situated in Québec but outside a designated region of the vendor and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the vendor for the year in respect of a recognized business,

(2)  if the activities referred to in the first paragraph do not relate to a recognized business of the vendor but relate to a recognized business of the purchaser, the salary or wages of an employee paid by the vendor in respect of a pay period, ended in the purchaser’s base period, in which the employee reports for work at an establishment of the vendor situated in Québec and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the purchaser for the year in respect of a recognized business, and

(3)  (subparagraph repealed);

(d)  D is the aggregate of all amounts each of which is

i.  for the purposes of subparagraph vii of subparagraph a of the first paragraph, the salary or wages paid by the vendor to an employee in respect of a pay period, ended in the particular calendar year, for which the employee is an eligible employee, or the salary or wages paid by the vendor to an employee in respect of a pay period that ended in the particular calendar year, other than an eligible employee of the vendor for the pay period, if, in that pay period, the employee reports for work at an establishment of the vendor situated in Québec and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the vendor for the year in respect of a recognized business, and

ii.  for the purposes of subparagraph 2 of subparagraph vii of subparagraph c of the first paragraph,

(1)  if the activities referred to in the first paragraph relate to a recognized business of the vendor, the salary or wages paid by the vendor to an employee in respect of a pay period, ended in the particular calendar year, for which the employee is an eligible employee, or the salary or wages paid by the vendor to an employee in respect of a pay period that ended in the particular calendar year, other than an eligible employee of the vendor for the pay period, if, in that pay period, the employee reports for work at an establishment of the vendor situated in Québec and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the vendor for the year in respect of a recognized business,

(2)  if the activities referred to in the first paragraph do not relate to a recognized business of the vendor but relate to a recognized business of the purchaser, the salary or wages of an employee paid by the vendor in respect of a pay period, ended in the particular calendar year, in which the employee reports for work at an establishment of the vendor situated in Québec and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the purchaser for the year in respect of a recognized business, and

(3)  (subparagraph repealed);

(e)  E is the aggregate of all amounts each of which is the salary or wages of an employee paid by the vendor in respect of a pay period, ended in the particular corporation’s base period, in which the employee reports for work at an establishment of the vendor situated in Québec and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the particular corporation for the year in respect of a recognized business, except if an amount is included, in respect of the employee, in relation to the vendor, in computing an amount determined under this subparagraph, in relation to another corporation that carries on a recognized business;

(f)  F is the aggregate of all amounts each of which is the salary or wages of an employee paid by the vendor in respect of a pay period, ended in the particular calendar year, in which the employee reports for work at an establishment of the vendor situated in Québec and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the particular corporation for the year in respect of a recognized business, except if an amount is included, in respect of the employee, in relation to the vendor, in computing an amount determined under this subparagraph, in relation to another corporation that carries on a recognized business; and

(g)  G is the proportion that the number of the vendor’s employees referred to in any of subparagraphs a to f, as the case may be, who were assigned to the carrying on of part of the activities that diminished or ceased at the particular time is of the number of the vendor’s employees assigned to those activities immediately before the particular time.

2005, c. 23, s. 209; 2006, c. 36, s. 177; 2009, c. 5, s. 447; 2009, c. 15, s. 294; 2010, c. 25, s. 158.

2009-06-04

1029.8.36.72.82.10.1. Subject to sections 1029.8.36.72.82.8 and 1029.8.36.72.82.9, if, at a particular time in a particular calendar year that ends in a particular taxation year or in a preceding taxation year, the activities carried on by a person or partnership (in this section referred to as the “vendor”) in relation to a recognized business or a business that could qualify as a recognized business if it were carried on in a designated region, diminish or cease and it may reasonably be considered that, as a result, another person or partnership (in this section referred to as the “purchaser”) that is associated with the vendor at the particular time, begins, after the particular time, to carry on similar activities in the course of carrying on such a business, or increases, after the particular time, the scope of similar activities carried on in the course of carrying on such a business, the following rules apply for the purpose of determining the amount that a particular corporation is deemed to have paid to the Minister under this division for the particular taxation year:

(a)  if the particular corporation is the vendor,

i.  the aggregate of all amounts each of which is the salary or wages paid by the vendor to an employee in respect of a pay period, within the vendor’s base period, for which the employee is an eligible employee, is deemed, for the purposes of subparagraph 2 of subparagraph i of subparagraph a of the first paragraph of sections 1029.8.36.72.82.2, 1029.8.36.72.82.3, 1029.8.36.72.82.3.2 and 1029.8.36.72.82.3.3 and subparagraph ii of subparagraph a of the first paragraph of section 1029.8.36.72.82.4, to be equal to the amount by which that amount otherwise determined exceeds the amount determined by the formula

A × G,

ii.  the aggregate of all amounts each of which is the portion of a salary or wages paid by the vendor to an employee in respect of a pay period, within the vendor’s base period, for which the employee is an eligible employee, that may reasonably be attributed to activities of the employee that are referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1, is deemed, for the purposes of subparagraph 2 of subparagraph i of subparagraph a.1 of the first paragraph of sections 1029.8.36.72.82.2 and 1029.8.36.72.82.3 and subparagraph ii of paragraph a of section 1029.8.36.72.82.4.1, to be equal to the amount by which that amount otherwise determined exceeds the amount that would be determined by the formula in subparagraph i if, for the purposes of subparagraph a of the second paragraph, only the employees of the vendor who carry on such activities were considered,

iii.  the aggregate of all amounts each of which is the salary or wages paid by the vendor to an employee in respect of a pay period, within the particular calendar year, for which the employee is an eligible employee, is deemed, for the purposes of subparagraph i of subparagraph a of the first paragraph of sections 1029.8.36.72.82.2, 1029.8.36.72.82.3, 1029.8.36.72.82.3.2 and 1029.8.36.72.82.3.3 and subparagraph a of the first paragraph of section 1029.8.36.72.82.4, to be equal to the amount by which that amount otherwise determined exceeds the amount determined by the formula

B × G,

iv.  the aggregate of all amounts each of which is the portion of a salary or wages paid by the vendor to an employee in respect of a pay period, within the particular calendar year, for which the employee is an eligible employee, that may reasonably be attributed to activities of the employee that are referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1, is deemed, for the purposes of subparagraph i of subparagraph a.1 of the first paragraph of sections 1029.8.36.72.82.2 and 1029.8.36.72.82.3 and paragraph a of section 1029.8.36.72.82.4.1, to be equal to the amount by which that amount otherwise determined exceeds the amount that would be determined by the formula in subparagraph iii if, for the purposes of subparagraph b of the second paragraph, only the employees of the vendor who carry on such activities were considered,

v.  the base amount of the vendor is deemed to be equal to the amount by which that amount otherwise determined exceeds the amount determined by the formula

C × G,

vi.  the amount that would be the vendor’s base amount if, for the purposes of the definition of “base amount” in the first paragraph of section 1029.8.36.72.82.1, only the portion of the salary or wages of an employee that may reasonably be attributed to activities referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1 were considered, is deemed to be equal to the amount by which that amount determined without reference to subparagraph v exceeds the amount that would be determined by the formula in subparagraph v if, for the purposes of subparagraph c of the second paragraph, only the employees of the vendor who carry on such activities were considered,

vii.  the eligible amount of the vendor for the particular calendar year is deemed to be equal to the amount by which that amount otherwise determined exceeds the amount determined by the formula

D × G, and

viii.  the amount that would be the vendor’s eligible amount for the particular calendar year if, for the purposes of the definition of “eligible amount” in the first paragraph of section 1029.8.36.72.82.1, only the portion of the salary or wages of an employee that may reasonably be attributed to activities referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1 were considered, is deemed to be equal to the amount by which that amount determined without reference to subparagraph vii exceeds the amount that would be determined by the formula in subparagraph vii if, for the purposes of subparagraph d of the second paragraph, only the employees of the vendor who carry on such activities were considered;

(b)  if the particular corporation is a corporation with which the vendor was associated at the end of the particular calendar year, the following rules apply:

i.  the amount that is the aggregate referred to in subparagraph 2 of subparagraph ii of subparagraph a of the first paragraph of section 1029.8.36.72.82.3 or 1029.8.36.72.82.3.3 or in subparagraph ii of subparagraph c of the first paragraph of section 1029.8.36.72.82.4, as the case may be, determined in respect of the vendor, is deemed to be equal to the amount by which that amount determined without reference to this subparagraph i exceeds the amount determined by the formula

E × G,

ii.  the amount that is the aggregate referred to in subparagraph 2 of subparagraph ii of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.3 or in subparagraph ii of paragraph c of section 1029.8.36.72.82.4.1, determined in respect of the vendor, is deemed to be equal to the amount by which that amount determined without reference to this subparagraph exceeds the amount that would be determined by the formula in subparagraph i if, for the purposes of subparagraph e of the second paragraph, only the employees of the vendor who carry on activities referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1 were considered,

iii.  the amount that is the second aggregate mentioned in the portion of subparagraph ii of subparagraph a of the first paragraph of section 1029.8.36.72.82.3 or 1029.8.36.72.82.3.3 before subparagraph 1 or in the portion of subparagraph c of the first paragraph of section 1029.8.36.72.82.4 before subparagraph i, as the case may be, determined in respect of the vendor for the particular calendar year, is deemed to be equal to the amount by which that amount determined without reference to this subparagraph iii exceeds the amount determined by the formula

F × G, and

iv.  the amount that is the second aggregate mentioned in the portion of subparagraph ii of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.3 before subparagraph 1 or in the portion of paragraph c of section 1029.8.36.72.82.4.1 before subparagraph i, determined in respect of the vendor for the particular calendar year, is deemed to be equal to the amount by which that amount determined without reference to this subparagraph exceeds the amount that would be determined by the formula in subparagraph iii if, for the purposes of subparagraph f of the second paragraph, only the employees of the vendor who carry on activities referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1 were considered;

(c)  if the particular corporation is the purchaser, the purchaser is deemed

i.  to have paid, for the purposes of subparagraph 2 of subparagraph i of subparagraph a of the first paragraph of section 1029.8.36.72.82.2, 1029.8.36.72.82.3, 1029.8.36.72.82.3.2 or 1029.8.36.72.82.3.3 or subparagraph ii of subparagraph a of the first paragraph of section 1029.8.36.72.82.4, as the case may be, to employees, in respect of a pay period, within the purchaser’s base period, for which the employees are eligible employees, the amount determined by the formula

A × G,

ii.  to have paid, for the purposes of subparagraph 2 of subparagraph i of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.2 or 1029.8.36.72.82.3 or subparagraph ii of paragraph a of section 1029.8.36.72.82.4.1, as the case may be, to employees, in respect of a pay period, within the purchaser’s base period, for which the employees are eligible employees, the amount that would be determined by the formula in subparagraph i if, for the purposes of subparagraph a of the second paragraph, only the employees of the vendor who carry on activities referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1 were considered,

iii.  to have paid, for the purposes of subparagraph i of subparagraph a of the first paragraph of section 1029.8.36.72.82.2, 1029.8.36.72.82.3, 1029.8.36.72.82.3.2 or 1029.8.36.72.82.3.3 or subparagraph a of the first paragraph of section 1029.8.36.72.82.4, as the case may be, to employees in respect of a pay period, within the particular calendar year, for which the employees are eligible employees, the amount determined by the formula

B × G,

iv.  to have paid, for the purposes of subparagraph i of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.2 or 1029.8.36.72.82.3 or paragraph a of section 1029.8.36.72.82.4.1, as the case may be, to employees in respect of a pay period, within the particular calendar year, for which the employees are eligible employees, the amount that would be determined by the formula in subparagraph iii if, for the purposes of subparagraph b of the second paragraph, only the employees of the vendor who carry on activities referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1 were considered,

v.  to have a base amount equal to the aggregate of

(1)  the purchaser’s base amount otherwise determined, and

(2)  the amount determined by the formula

C × G,

vi.  to have an amount that would be the purchaser’s base amount if, for the purposes of the definition of “base amount” in the first paragraph of section 1029.8.36.72.82.1, only the portion of the salary or wages of an employee that may reasonably be attributed to activities referred to in any of paragraphs a to d of the definition of “eligible region” in that first paragraph were considered, that is equal to the aggregate of

(1)  the amount that would be the purchaser’s base amount if, for the purposes of the definition of “base amount” in the first paragraph of section 1029.8.36.72.82.1, only the portion of the salary or wages of an employee that may reasonably be attributed to activities referred to in any of paragraphs a to d of the definition of “eligible region” in that first paragraph were considered, and if no reference were made to subparagraph v or this subparagraph vi, and

(2)  the amount that would be determined by the formula in subparagraph 2 of subparagraph v if, for the purposes of subparagraph c of the second paragraph, only the employees of the vendor who carry on activities referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1 were considered,

vii.  to have an eligible amount for the particular calendar year equal to the aggregate of

(1)  the purchaser’s eligible amount otherwise determined for the particular calendar year, and

(2)  the amount determined by the formula

D × G, and

viii.  to have an amount that would be the purchaser’s eligible amount for the particular calendar year if, for the purposes of the definition of “eligible amount” in the first paragraph of section 1029.8.36.72.82.1, only the portion of the salary or wages of an employee that may reasonably be attributed to activities referred to in any of paragraphs a to d of the definition of “eligible region” in that first paragraph were considered, that is equal to the aggregate of

(1)  the amount that would be the purchaser’s eligible amount for the particular calendar year if, for the purposes of the definition of “eligible amount” in the first paragraph of section 1029.8.36.72.82.1, only the portion of the salary or wages of an employee that may reasonably be attributed to activities referred to in any of paragraphs a to d of the definition of “eligible region” in that first paragraph were considered, and if no reference were made to subparagraph vii or this subparagraph viii, and

(2)  the amount that would be determined by the formula in subparagraph 2 of subparagraph vii if, for the purposes of subparagraph d of the second paragraph, only the employees of the vendor who carry on activities referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1 were considered; and

(d)  if the particular corporation is a corporation that is associated with the purchaser at the end of the particular calendar year, the following rules apply:

i.  the amount that is the aggregate referred to in subparagraph 2 of subparagraph ii of subparagraph a of the first paragraph of section 1029.8.36.72.82.3 or 1029.8.36.72.82.3.3 or in subparagraph ii of subparagraph c of the first paragraph of section 1029.8.36.72.82.4, as the case may be, determined in respect of the purchaser, is deemed to be equal to the aggregate of

(1)  the amount of that aggregate determined without reference to this subparagraph i, and

(2)  the amount determined by the formula

E × G,

ii.  the amount that is the aggregate referred to in subparagraph 2 of subparagraph ii of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.3 or in subparagraph ii of paragraph c of section 1029.8.36.72.82.4.1, determined in respect of the purchaser, is deemed to be equal to the aggregate of

(1)  the amount of that aggregate determined without reference to this subparagraph ii, and

(2)  the amount that would be determined by the formula in subparagraph i if, for the purposes of subparagraph e of the second paragraph, only the employees of the vendor who carry on activities referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1 were considered,

iii.  the amount that is the second aggregate mentioned in the portion of subparagraph ii of subparagraph a of the first paragraph of section 1029.8.36.72.82.3 or 1029.8.36.72.82.3.3 before subparagraph 1 or in the portion of subparagraph c of the first paragraph of section 1029.8.36.72.82.4 before subparagraph i, as the case may be, determined in respect of the purchaser for the particular calendar year, is deemed to be equal to the aggregate of

(1)  the amount of that aggregate determined without reference to this subparagraph iii for the particular calendar year, and

(2)  the amount determined by the formula

F × G, and

iv.  the amount that is the second aggregate mentioned in the portion of subparagraph ii of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.3 before subparagraph 1 or in the portion of paragraph c of section 1029.8.36.72.82.4.1 before subparagraph i, determined in respect of the purchaser for the particular calendar year, is deemed to be equal to the aggregate of

(1)  the amount of that aggregate determined without reference to this subparagraph iv for the particular calendar year, and

(2)  the amount that would be determined by the formula in subparagraph iii if, for the purposes of subparagraph f of the second paragraph, only the employees of the vendor who carry on activities referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1 were considered.

In the formulas in subparagraphs a to d of the first paragraph,

(a)  A is the aggregate of all amounts each of which is,

i.  for the purposes of subparagraph i of subparagraph a of the first paragraph, the salary or wages paid by the vendor to an employee in respect of a pay period, within the vendor’s base period, for which the employee is an eligible employee, and

ii.  for the purposes of subparagraph i of subparagraph c of the first paragraph,

(1)  if the activities referred to in the first paragraph relate to a recognized business of the vendor, the salary or wages paid by the vendor to an employee in respect of a pay period, within the vendor’s base period, for which the employee is an eligible employee,

(2)  if the activities referred to in the first paragraph do not relate to a recognized business of the vendor but relate to a recognized business of the purchaser, the salary or wages of an employee paid by the vendor in respect of a pay period, within the purchaser’s base period, in which the employee reports for work at an establishment of the vendor situated in a designated region of the vendor and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the purchaser for the year in respect of a recognized business, and

(3)  (subparagraph repealed);

(b)  B is the aggregate of all amounts each of which is,

i.  for the purposes of subparagraph iii of subparagraph a of the first paragraph, the salary or wages paid by the vendor to an employee in respect of a pay period, within the particular calendar year, for which the employee is an eligible employee, and

ii.  for the purposes of subparagraph iii of subparagraph c of the first paragraph,

(1)  if the activities referred to in the first paragraph relate to a recognized business of the vendor, the salary or wages paid by the vendor to an employee in respect of a pay period, within the particular calendar year, for which the employee is an eligible employee,

(2)  if the activities referred to in the first paragraph do not relate to a recognized business of the vendor but relate to a recognized business of the purchaser, the salary or wages of an employee paid by the vendor in respect of a pay period, within the particular calendar year, in which the employee reports for work at an establishment of the vendor situated in a designated region of the vendor and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the purchaser for the year in respect of a recognized business, and

(3)  (subparagraph repealed);

(c)  C is the aggregate of all amounts each of which is

i.  for the purposes of subparagraph v of subparagraph a of the first paragraph, the salary or wages paid by the vendor to an employee in respect of a pay period, within the vendor’s base period, for which the employee is an eligible employee, or the salary or wages of an employee of the vendor paid by the vendor in respect of a pay period, within the vendor’s base period, in which the employee reports for work at an establishment of the vendor situated in Québec but outside a designated region of the vendor and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the vendor for the year in respect of a recognized business, and

ii.  for the purposes of subparagraph 2 of subparagraph v of subparagraph c of the first paragraph,

(1)  if the activities referred to in the first paragraph relate to a recognized business of the vendor, the salary or wages paid by the vendor to an employee in respect of a pay period, within the vendor’s base period, for which the employee is an eligible employee, or the salary or wages of an employee paid by the vendor in respect of a pay period, within the vendor’s base period, in which the employee reports for work at an establishment of the vendor situated in Québec but outside a designated region of the vendor and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the vendor for the year in respect of a recognized business,

(2)  if the activities referred to in the first paragraph do not relate to a recognized business of the vendor but relate to a recognized business of the purchaser, the salary or wages of an employee paid by the vendor in respect of a pay period, within the purchaser’s base period, in which the employee reports for work at an establishment of the vendor situated in Québec and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the purchaser for the year in respect of a recognized business, and

(3)  (subparagraph repealed);

(d)  D is the aggregate of all amounts each of which is

i.  for the purposes of subparagraph vii of subparagraph a of the first paragraph, the salary or wages paid by the vendor to an employee in respect of a pay period, within the particular calendar year, for which the employee is an eligible employee, or the salary or wages paid by the vendor to an employee in respect of a pay period within the particular calendar year, other than an eligible employee of the vendor for the pay period, if, in that pay period, the employee reports for work at an establishment of the vendor situated in Québec and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the vendor for the year in respect of a recognized business, and

ii.  for the purposes of subparagraph 2 of subparagraph vii of subparagraph c of the first paragraph,

(1)  if the activities referred to in the first paragraph relate to a recognized business of the vendor, the salary or wages paid by the vendor to an employee in respect of a pay period, within the particular calendar year, for which the employee is an eligible employee, or the salary or wages paid by the vendor to an employee in respect of a pay period within the particular calendar year, other than an eligible employee of the vendor for the pay period, if, in that pay period, the employee reports for work at an establishment of the vendor situated in Québec and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the vendor for the year in respect of a recognized business,

(2)  if the activities referred to in the first paragraph do not relate to a recognized business of the vendor but relate to a recognized business of the purchaser, the salary or wages of an employee paid by the vendor in respect of a pay period, within the particular calendar year, in which the employee reports for work at an establishment of the vendor situated in Québec and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the purchaser for the year in respect of a recognized business, and

(3)  (subparagraph repealed);

(e)  E is the aggregate of all amounts each of which is the salary or wages of an employee paid by the vendor in respect of a pay period, within the particular corporation’s base period, in which the employee reports for work at an establishment of the vendor situated in Québec and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the particular corporation for the year in respect of a recognized business, except if an amount is included, in respect of the employee, in relation to the vendor, in computing an amount determined under this subparagraph, in relation to another corporation that carries on a recognized business;

(f)  F is the aggregate of all amounts each of which is the salary or wages of an employee paid by the vendor in respect of a pay period, within the particular calendar year, in which the employee reports for work at an establishment of the vendor situated in Québec and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the particular corporation for the year in respect of a recognized business, except if an amount is included, in respect of the employee, in relation to the vendor, in computing an amount determined under this subparagraph, in relation to another corporation that carries on a recognized business; and

(g)  G is the proportion that the number of the vendor’s employees referred to in any of subparagraphs a to f, as the case may be, who were assigned to the carrying on of part of the activities that diminished or ceased at the particular time is of the number of the vendor’s employees assigned to those activities immediately before the particular time.

2005, c. 23, s. 209; 2006, c. 36, s. 177; 2009, c. 5, s. 447; 2009, c. 15, s. 294.

2009-05-15

1029.8.36.72.82.10.1. Subject to sections 1029.8.36.72.82.8 and 1029.8.36.72.82.9, if, at a particular time in a particular calendar year that ends in a particular taxation year or in a preceding taxation year, the activities carried on by a person or partnership (in this section referred to as the “vendor”) in relation to a recognized business or a business that could qualify as a recognized business if it were carried on in a designated region, diminish or cease and it may reasonably be considered that, as a result, another person or partnership (in this section referred to as the “purchaser”) that is associated with the vendor at the particular time, begins, after the particular time, to carry on similar activities in the course of carrying on such a business, or increases, after the particular time, the scope of similar activities carried on in the course of carrying on such a business, the following rules apply for the purpose of determining the amount that a particular corporation is deemed to have paid to the Minister under this division for the particular taxation year:

(a)  if the particular corporation is the vendor,

i.  the aggregate of all amounts each of which is the salary or wages paid by the vendor to an employee in respect of a pay period, within the vendor’s base period, for which the employee is an eligible employee, is deemed, for the purposes of subparagraph 2 of subparagraph i of subparagraph a of the first paragraph of section 1029.8.36.72.82.2, subparagraph 2 of subparagraph i of subparagraph a of the first paragraph of section 1029.8.36.72.82.3 and subparagraph ii of subparagraph a of the first paragraph of section 1029.8.36.72.82.4, to be equal to the amount by which that amount otherwise determined exceeds the amount determined by the formula

A × G,

ii.  the aggregate of all amounts each of which is the portion of a salary or wages paid by the vendor to an employee in respect of a pay period, within the vendor’s base period, for which the employee is an eligible employee, that may reasonably be attributed to activities of the employee that are referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1, is deemed, for the purposes of subparagraph 2 of subparagraph i of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.2, subparagraph 2 of subparagraph i of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.3 and subparagraph ii of paragraph a of section 1029.8.36.72.82.4.1, to be equal to the amount by which that amount otherwise determined exceeds the amount that would be determined by the formula in subparagraph i if, for the purposes of subparagraph a of the second paragraph, only the employees of the vendor who carry on such activities were considered,

iii.  the aggregate of all amounts each of which is the salary or wages paid by the vendor to an employee in respect of a pay period, within the particular calendar year, for which the employee is an eligible employee, is deemed, for the purposes of subparagraph i of subparagraph a of the first paragraph of section 1029.8.36.72.82.2, subparagraph i of subparagraph a of the first paragraph of section 1029.8.36.72.82.3 and subparagraph a of the first paragraph of section 1029.8.36.72.82.4, to be equal to the amount by which that amount otherwise determined exceeds the amount determined by the formula

B × G,

iv.  the aggregate of all amounts each of which is the portion of a salary or wages paid by the vendor to an employee in respect of a pay period, within the particular calendar year, for which the employee is an eligible employee, that may reasonably be attributed to activities of the employee that are referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1, is deemed, for the purposes of subparagraph i of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.2, subparagraph i of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.3 and paragraph a of section 1029.8.36.72.82.4.1, to be equal to the amount by which that amount otherwise determined exceeds the amount that would be determined by the formula in subparagraph iii if, for the purposes of subparagraph b of the second paragraph, only the employees of the vendor who carry on such activities were considered,

v.  the base amount of the vendor is deemed to be equal to the amount by which that amount otherwise determined exceeds the amount determined by the formula

C × G,

vi.  the amount that would be the vendor’s base amount if, for the purposes of the definition of “base amount” in the first paragraph of section 1029.8.36.72.82.1, only the portion of the salary or wages of an employee that may reasonably be attributed to activities referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1 were considered, is deemed to be equal to the amount by which that amount determined without reference to subparagraph v exceeds the amount that would be determined by the formula in subparagraph v if, for the purposes of subparagraph c of the second paragraph, only the employees of the vendor who carry on such activities were considered,

vii.  the eligible amount of the vendor for the particular calendar year is deemed to be equal to the amount by which that amount otherwise determined exceeds the amount determined by the formula

D × G, and

viii.  the amount that would be the vendor’s eligible amount for the particular calendar year if, for the purposes of the definition of “eligible amount” in the first paragraph of section 1029.8.36.72.82.1, only the portion of the salary or wages of an employee that may reasonably be attributed to activities referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1 were considered, is deemed to be equal to the amount by which that amount determined without reference to subparagraph vii exceeds the amount that would be determined by the formula in subparagraph vii if, for the purposes of subparagraph d of the second paragraph, only the employees of the vendor who carry on such activities were considered;

(b)  if the particular corporation is a corporation with which the vendor was associated at the end of the particular calendar year, the following rules apply:

i.  the amount that is the aggregate referred to in subparagraph 2 of subparagraph ii of subparagraph a of the first paragraph of section 1029.8.36.72.82.3 or in subparagraph ii of subparagraph c of the first paragraph of section 1029.8.36.72.82.4, determined in respect of the vendor, is deemed to be equal to the amount by which that amount determined without reference to this subparagraph exceeds the amount determined by the formula

E × G,

ii.  the amount that is the aggregate referred to in subparagraph 2 of subparagraph ii of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.3 or in subparagraph ii of paragraph c of section 1029.8.36.72.82.4.1, determined in respect of the vendor, is deemed to be equal to the amount by which that amount determined without reference to this subparagraph exceeds the amount that would be determined by the formula in subparagraph i if, for the purposes of subparagraph e of the second paragraph, only the employees of the vendor who carry on activities referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1 were considered,

iii.  the amount that is the second aggregate mentioned in the portion of subparagraph ii of subparagraph a of the first paragraph of section 1029.8.36.72.82.3 before subparagraph 1 or in the portion of subparagraph c of the first paragraph of section 1029.8.36.72.82.4 before subparagraph i, determined in respect of the vendor for the particular calendar year, is deemed to be equal to the amount by which that amount determined without reference to this subparagraph exceeds the amount determined by the formula

F × G, and

iv.  the amount that is the second aggregate mentioned in the portion of subparagraph ii of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.3 before subparagraph 1 or in the portion of paragraph c of section 1029.8.36.72.82.4.1 before subparagraph i, determined in respect of the vendor for the particular calendar year, is deemed to be equal to the amount by which that amount determined without reference to this subparagraph exceeds the amount that would be determined by the formula in subparagraph iii if, for the purposes of subparagraph f of the second paragraph, only the employees of the vendor who carry on activities referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1 were considered;

(c)  if the particular corporation is the purchaser, the purchaser is deemed

i.  to have paid, for the purposes of subparagraph 2 of subparagraph i of subparagraph a of the first paragraph of section 1029.8.36.72.82.2, subparagraph 2 of subparagraph i of subparagraph a of the first paragraph of section 1029.8.36.72.82.3 or subparagraph ii of subparagraph a of the first paragraph of section 1029.8.36.72.82.4, as the case may be, to employees, in respect of a pay period, within the purchaser’s base period, for which the employees are eligible employees, the amount determined by the formula

A × G,

ii.  to have paid, for the purposes of subparagraph 2 of subparagraph i of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.2, subparagraph 2 of subparagraph i of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.3 or subparagraph ii of paragraph a of section 1029.8.36.72.82.4.1, as the case may be, to employees, in respect of a pay period, within the purchaser’s base period, for which the employees are eligible employees, the amount that would be determined by the formula in subparagraph i if, for the purposes of subparagraph a of the second paragraph, only the employees of the vendor who carry on activities referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1 were considered,

iii.  to have paid, for the purposes of subparagraph i of subparagraph a of the first paragraph of section 1029.8.36.72.82.2, subparagraph i of subparagraph a of the first paragraph of section 1029.8.36.72.82.3 or subparagraph a of the first paragraph of section 1029.8.36.72.82.4, as the case may be, to employees in respect of a pay period, within the particular calendar year, for which the employees are eligible employees, the amount determined by the formula

B × G,

iv.  to have paid, for the purposes of subparagraph i of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.2, subparagraph i of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.3 or paragraph a of section 1029.8.36.72.82.4.1, as the case may be, to employees in respect of a pay period, within the particular calendar year, for which the employees are eligible employees, the amount that would be determined by the formula in subparagraph iii if, for the purposes of subparagraph b of the second paragraph, only the employees of the vendor who carry on activities referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1 were considered,

v.  to have a base amount equal to the aggregate of

(1)  the purchaser’s base amount otherwise determined, and

(2)  the amount determined by the formula

C × G,

vi.  to have an amount that would be the purchaser’s base amount if, for the purposes of the definition of “base amount” in the first paragraph of section 1029.8.36.72.82.1, only the portion of the salary or wages of an employee that may reasonably be attributed to activities referred to in any of paragraphs a to d of the definition of “eligible region” in that first paragraph were considered, that is equal to the aggregate of

(1)  the amount that would be the purchaser’s base amount if, for the purposes of the definition of “base amount” in the first paragraph of section 1029.8.36.72.82.1, only the portion of the salary or wages of an employee that may reasonably be attributed to activities referred to in any of paragraphs a to d of the definition of “eligible region” in that first paragraph were considered, and if no reference were made to subparagraph v or this subparagraph vi, and

(2)  the amount that would be determined by the formula in subparagraph 2 of subparagraph v if, for the purposes of subparagraph c of the second paragraph, only the employees of the vendor who carry on activities referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1 were considered,

vii.  to have an eligible amount for the particular calendar year equal to the aggregate of

(1)  the purchaser’s eligible amount otherwise determined for the particular calendar year, and

(2)  the amount determined by the formula

D × G, and

viii.  to have an amount that would be the purchaser’s eligible amount for the particular calendar year if, for the purposes of the definition of “eligible amount” in the first paragraph of section 1029.8.36.72.82.1, only the portion of the salary or wages of an employee that may reasonably be attributed to activities referred to in any of paragraphs a to d of the definition of “eligible region” in that first paragraph were considered, that is equal to the aggregate of

(1)  the amount that would be the purchaser’s eligible amount for the particular calendar year if, for the purposes of the definition of “eligible amount” in the first paragraph of section 1029.8.36.72.82.1, only the portion of the salary or wages of an employee that may reasonably be attributed to activities referred to in any of paragraphs a to d of the definition of “eligible region” in that first paragraph were considered, and if no reference were made to subparagraph vii or this subparagraph viii, and

(2)  the amount that would be determined by the formula in subparagraph 2 of subparagraph vii if, for the purposes of subparagraph d of the second paragraph, only the employees of the vendor who carry on activities referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1 were considered; and

(d)  if the particular corporation is a corporation that is associated with the purchaser at the end of the particular calendar year, the following rules apply:

i.  the amount that is the aggregate referred to in subparagraph 2 of subparagraph ii of subparagraph a of the first paragraph of section 1029.8.36.72.82.3 or in subparagraph ii of subparagraph c of the first paragraph of section 1029.8.36.72.82.4, determined in respect of the purchaser, is deemed to be equal to the aggregate of

(1)  the amount of that aggregate determined without reference to this subparagraph i, and

(2)  the amount determined by the formula

E × G,

ii.  the amount that is the aggregate referred to in subparagraph 2 of subparagraph ii of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.3 or in subparagraph ii of paragraph c of section 1029.8.36.72.82.4.1, determined in respect of the purchaser, is deemed to be equal to the aggregate of

(1)  the amount of that aggregate determined without reference to this subparagraph ii, and

(2)  the amount that would be determined by the formula in subparagraph i if, for the purposes of subparagraph e of the second paragraph, only the employees of the vendor who carry on activities referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1 were considered,

iii.  the amount that is the second aggregate mentioned in the portion of subparagraph ii of subparagraph a of the first paragraph of section 1029.8.36.72.82.3 before subparagraph 1 or in the portion of subparagraph c of the first paragraph of section 1029.8.36.72.82.4 before subparagraph i, determined in respect of the purchaser for the particular calendar year, is deemed to be equal to the aggregate of

(1)  the amount of that aggregate determined without reference to this subparagraph iii for the particular calendar year, and

(2)  the amount determined by the formula

F × G, and

iv.  the amount that is the second aggregate mentioned in the portion of subparagraph ii of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.3 before subparagraph 1 or in the portion of paragraph c of section 1029.8.36.72.82.4.1 before subparagraph i, determined in respect of the purchaser for the particular calendar year, is deemed to be equal to the aggregate of

(1)  the amount of that aggregate determined without reference to this subparagraph iv for the particular calendar year, and

(2)  the amount that would be determined by the formula in subparagraph iii if, for the purposes of subparagraph f of the second paragraph, only the employees of the vendor who carry on activities referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1 were considered.

In the formulas in subparagraphs a to d of the first paragraph,

(a)  A is the aggregate of all amounts each of which is,

i.  for the purposes of subparagraph i of subparagraph a of the first paragraph, the salary or wages paid by the vendor to an employee in respect of a pay period, within the vendor’s base period, for which the employee is an eligible employee, and

ii.  for the purposes of subparagraph i of subparagraph c of the first paragraph,

(1)  if the activities referred to in the first paragraph relate to a recognized business of the vendor, the salary or wages paid by the vendor to an employee in respect of a pay period, within the vendor’s base period, for which the employee is an eligible employee,

(2)  if the activities referred to in the first paragraph do not relate to a recognized business of the vendor but relate to a recognized business of the purchaser, the salary or wages of an employee paid by the vendor in respect of a pay period, within the purchaser’s base period, in which the employee reports for work at an establishment of the vendor situated in a designated region of the vendor and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the purchaser for the year in respect of a recognized business, and

(3)  (subparagraph repealed);

(b)  B is the aggregate of all amounts each of which is,

i.  for the purposes of subparagraph iii of subparagraph a of the first paragraph, the salary or wages paid by the vendor to an employee in respect of a pay period, within the particular calendar year, for which the employee is an eligible employee, and

ii.  for the purposes of subparagraph iii of subparagraph c of the first paragraph,

(1)  if the activities referred to in the first paragraph relate to a recognized business of the vendor, the salary or wages paid by the vendor to an employee in respect of a pay period, within the particular calendar year, for which the employee is an eligible employee,

(2)  if the activities referred to in the first paragraph do not relate to a recognized business of the vendor but relate to a recognized business of the purchaser, the salary or wages of an employee paid by the vendor in respect of a pay period, within the particular calendar year, in which the employee reports for work at an establishment of the vendor situated in a designated region of the vendor and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the purchaser for the year in respect of a recognized business, and

(3)  (subparagraph repealed);

(c)  C is the aggregate of all amounts each of which is

i.  for the purposes of subparagraph v of subparagraph a of the first paragraph, the salary or wages paid by the vendor to an employee in respect of a pay period, within the vendor’s base period, for which the employee is an eligible employee, or the salary or wages of an employee of the vendor paid by the vendor in respect of a pay period, within the vendor’s base period, in which the employee reports for work at an establishment of the vendor situated in Québec but outside a designated region of the vendor and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the vendor for the year in respect of a recognized business, and

ii.  for the purposes of subparagraph 2 of subparagraph v of subparagraph c of the first paragraph,

(1)  if the activities referred to in the first paragraph relate to a recognized business of the vendor, the salary or wages paid by the vendor to an employee in respect of a pay period, within the vendor’s base period, for which the employee is an eligible employee, or the salary or wages of an employee paid by the vendor in respect of a pay period, within the vendor’s base period, in which the employee reports for work at an establishment of the vendor situated in Québec but outside a designated region of the vendor and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the vendor for the year in respect of a recognized business,

(2)  if the activities referred to in the first paragraph do not relate to a recognized business of the vendor but relate to a recognized business of the purchaser, the salary or wages of an employee paid by the vendor in respect of a pay period, within the purchaser’s base period, in which the employee reports for work at an establishment of the vendor situated in Québec and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the purchaser for the year in respect of a recognized business, and

(3)  (subparagraph repealed);

(d)  D is the aggregate of all amounts each of which is

i.  for the purposes of subparagraph vii of subparagraph a of the first paragraph, the salary or wages paid by the vendor to an employee in respect of a pay period, within the particular calendar year, for which the employee is an eligible employee, or the salary or wages paid by the vendor to an employee in respect of a pay period within the particular calendar year, other than an eligible employee of the vendor for the pay period, if, in that pay period, the employee reports for work at an establishment of the vendor situated in Québec and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the vendor for the year in respect of a recognized business, and

ii.  for the purposes of subparagraph 2 of subparagraph vii of subparagraph c of the first paragraph,

(1)  if the activities referred to in the first paragraph relate to a recognized business of the vendor, the salary or wages paid by the vendor to an employee in respect of a pay period, within the particular calendar year, for which the employee is an eligible employee, or the salary or wages paid by the vendor to an employee in respect of a pay period within the particular calendar year, other than an eligible employee of the vendor for the pay period, if, in that pay period, the employee reports for work at an establishment of the vendor situated in Québec and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the vendor for the year in respect of a recognized business,

(2)  if the activities referred to in the first paragraph do not relate to a recognized business of the vendor but relate to a recognized business of the purchaser, the salary or wages of an employee paid by the vendor in respect of a pay period, within the particular calendar year, in which the employee reports for work at an establishment of the vendor situated in Québec and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the purchaser for the year in respect of a recognized business, and

(3)  (subparagraph repealed);

(e)  E is the aggregate of all amounts each of which is the salary or wages of an employee paid by the vendor in respect of a pay period, within the particular corporation’s base period, in which the employee reports for work at an establishment of the vendor situated in Québec and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the particular corporation for the year in respect of a recognized business, except if an amount is included, in respect of the employee, in relation to the vendor, in computing an amount determined under this subparagraph, in relation to another corporation that carries on a recognized business;

(f)  F is the aggregate of all amounts each of which is the salary or wages of an employee paid by the vendor in respect of a pay period, within the particular calendar year, in which the employee reports for work at an establishment of the vendor situated in Québec and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the particular corporation for the year in respect of a recognized business, except if an amount is included, in respect of the employee, in relation to the vendor, in computing an amount determined under this subparagraph, in relation to another corporation that carries on a recognized business; and

(g)  G is the proportion that the number of the vendor’s employees referred to in any of subparagraphs a to f, as the case may be, who were assigned to the carrying on of part of the activities that diminished or ceased at the particular time is of the number of the vendor’s employees assigned to those activities immediately before the particular time.

2005, c. 23, s. 209; 2006, c. 36, s. 177; 2009, c. 5, s. 447.

2006-12-06

1029.8.36.72.82.10.1. Subject to sections 1029.8.36.72.82.8 and 1029.8.36.72.82.9, if, at a particular time in a particular calendar year, the activities carried on by a person or partnership, in this section referred to as the “vendor”, in relation to a recognized business or a business that could qualify as a recognized business if it were carried on in a designated region, diminish or cease and it may reasonably be considered that, as a result, another person or partnership, in this section referred to as the “purchaser”, that is associated with the vendor at the particular time, begins, after the particular time, to carry on similar activities in the course of carrying on such a business, or increases, after the particular time, the scope of similar activities carried on in the course of carrying on such a business, the following rules apply for the purpose of determining the amount that a particular corporation is deemed to have paid to the Minister under this division for the taxation year in which the particular calendar year ends and for the taxation year in which a subsequent calendar year ends:

(a)  if the particular corporation is the vendor,

i.  the aggregate of all amounts each of which is the salary or wages paid by the vendor to an employee in respect of a pay period, within the vendor’s base period, for which the employee is an eligible employee, is deemed, for the purposes of subparagraph 2 of subparagraph i of subparagraph a of the first paragraph of section 1029.8.36.72.82.2, subparagraph 2 of subparagraph i of subparagraph a of the first paragraph of section 1029.8.36.72.82.3 and subparagraph ii of subparagraph a of the first paragraph of section 1029.8.36.72.82.4, to be equal to the amount by which that amount otherwise determined exceeds the amount determined by the formula

A × G,

ii.  the aggregate of all amounts each of which is the portion of a salary or wages paid by the vendor to an employee in respect of a pay period, within the vendor’s base period, for which the employee is an eligible employee, that may reasonably be attributed to activities of the employee that are referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1, is deemed, for the purposes of subparagraph 2 of subparagraph i of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.2, subparagraph 2 of subparagraph i of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.3 and subparagraph ii of paragraph a of section 1029.8.36.72.82.4.1, to be equal to the amount by which that amount otherwise determined exceeds the amount that would be determined by the formula in subparagraph i if, for the purposes of subparagraph a of the second paragraph, only the employees of the vendor who carry on such activities were considered,

iii.  the aggregate of all amounts each of which is the salary or wages paid by the vendor to an employee in respect of a pay period, within the particular calendar year, for which the employee is an eligible employee, is deemed, for the purposes of subparagraph i of subparagraph a of the first paragraph of section 1029.8.36.72.82.2, subparagraph i of subparagraph a of the first paragraph of section 1029.8.36.72.82.3 and subparagraph a of the first paragraph of section 1029.8.36.72.82.4, to be equal to the amount by which that amount otherwise determined exceeds the amount determined by the formula

B × G,

iv.  the aggregate of all amounts each of which is the portion of a salary or wages paid by the vendor to an employee in respect of a pay period, within the particular calendar year, for which the employee is an eligible employee, that may reasonably be attributed to activities of the employee that are referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1, is deemed, for the purposes of subparagraph i of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.2, subparagraph i of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.3 and paragraph a of section 1029.8.36.72.82.4.1, to be equal to the amount by which that amount otherwise determined exceeds the amount that would be determined by the formula in subparagraph iii if, for the purposes of subparagraph b of the second paragraph, only the employees of the vendor who carry on such activities were considered,

v.  the base amount of the vendor is deemed to be equal to the amount by which that amount otherwise determined exceeds the amount determined by the formula

C × G,

vi.  the amount that would be the vendor’s base amount if, for the purposes of the definition of “base amount” in the first paragraph of section 1029.8.36.72.82.1, only the portion of the salary or wages of an employee that may reasonably be attributed to activities referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1 were considered, is deemed to be equal to the amount by which that amount determined without reference to subparagraph v exceeds the amount that would be determined by the formula in subparagraph v if, for the purposes of subparagraph c of the second paragraph, only the employees of the vendor who carry on such activities were considered,

vii.  the eligible amount of the vendor for the particular calendar year is deemed to be equal to the amount by which that amount otherwise determined exceeds the amount determined by the formula

D × G, and

viii.  the amount that would be the vendor’s eligible amount for the particular calendar year if, for the purposes of the definition of “eligible amount” in the first paragraph of section 1029.8.36.72.82.1, only the portion of the salary or wages of an employee that may reasonably be attributed to activities referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1 were considered, is deemed to be equal to the amount by which that amount determined without reference to subparagraph vii exceeds the amount that would be determined by the formula in subparagraph vii if, for the purposes of subparagraph d of the second paragraph, only the employees of the vendor who carry on such activities were considered;

(b)  if the particular corporation is a corporation with which the vendor was associated at the end of the particular calendar year, the following rules apply:

i.  the amount that is the aggregate referred to in subparagraph 2 of subparagraph ii of subparagraph a of the first paragraph of section 1029.8.36.72.82.3 or in subparagraph ii of subparagraph c of the first paragraph of section 1029.8.36.72.82.4, determined in respect of the vendor, is deemed to be equal to the amount by which that amount determined without reference to this subparagraph exceeds the amount determined by the formula

E × G,

ii.  the amount that is the aggregate referred to in subparagraph 2 of subparagraph ii of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.3 or in subparagraph ii of paragraph c of section 1029.8.36.72.82.4.1, determined in respect of the vendor, is deemed to be equal to the amount by which that amount determined without reference to this subparagraph exceeds the amount that would be determined by the formula in subparagraph i if, for the purposes of subparagraph e of the second paragraph, only the employees of the vendor who carry on activities referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1 were considered,

iii.  the amount that is the second aggregate mentioned in the portion of subparagraph ii of subparagraph a of the first paragraph of section 1029.8.36.72.82.3 before subparagraph 1 or in the portion of subparagraph c of the first paragraph of section 1029.8.36.72.82.4 before subparagraph i, determined in respect of the vendor for the particular calendar year, is deemed to be equal to the amount by which that amount determined without reference to this subparagraph exceeds the amount determined by the formula

F × G, and

iv.  the amount that is the second aggregate mentioned in the portion of subparagraph ii of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.3 before subparagraph 1 or in the portion of paragraph c of section 1029.8.36.72.82.4.1 before subparagraph i, determined in respect of the vendor for the particular calendar year, is deemed to be equal to the amount by which that amount determined without reference to this subparagraph exceeds the amount that would be determined by the formula in subparagraph iii if, for the purposes of subparagraph f of the second paragraph, only the employees of the vendor who carry on activities referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1 were considered;

(c)  if the particular corporation is the purchaser, the purchaser is deemed

i.  to have paid, for the purposes of subparagraph 2 of subparagraph i of subparagraph a of the first paragraph of section 1029.8.36.72.82.2, subparagraph 2 of subparagraph i of subparagraph a of the first paragraph of section 1029.8.36.72.82.3 or subparagraph ii of subparagraph a of the first paragraph of section 1029.8.36.72.82.4, as the case may be, to employees, in respect of a pay period, within the purchaser’s base period, for which the employees are eligible employees, the amount determined by the formula

A × G,

ii.  to have paid, for the purposes of subparagraph 2 of subparagraph i of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.2, subparagraph 2 of subparagraph i of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.3 or subparagraph ii of paragraph a of section 1029.8.36.72.82.4.1, as the case may be, to employees, in respect of a pay period, within the purchaser’s base period, for which the employees are eligible employees, the amount that would be determined by the formula in subparagraph i if, for the purposes of subparagraph a of the second paragraph, only the employees of the vendor who carry on activities referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1 were considered,

iii.  to have paid, for the purposes of subparagraph i of subparagraph a of the first paragraph of section 1029.8.36.72.82.2, subparagraph i of subparagraph a of the first paragraph of section 1029.8.36.72.82.3 or subparagraph a of the first paragraph of section 1029.8.36.72.82.4, as the case may be, to employees in respect of a pay period, within the particular calendar year, for which the employees are eligible employees, the amount determined by the formula

B × G,

iv.  to have paid, for the purposes of subparagraph i of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.2, subparagraph i of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.3 or paragraph a of section 1029.8.36.72.82.4.1, as the case may be, to employees in respect of a pay period, within the particular calendar year, for which the employees are eligible employees, the amount that would be determined by the formula in subparagraph iii if, for the purposes of subparagraph b of the second paragraph, only the employees of the vendor who carry on activities referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1 were considered,

v.  to have a base amount equal to the aggregate of

(1)  the purchaser’s base amount otherwise determined, and

(2)  the amount determined by the formula

C × G,

vi.  to have an amount that would be the purchaser’s base amount if, for the purposes of the definition of “base amount” in the first paragraph of section 1029.8.36.72.82.1, only the portion of the salary or wages of an employee that may reasonably be attributed to activities referred to in any of paragraphs a to d of the definition of “eligible region” in that first paragraph were considered, that is equal to the aggregate of

(1)  the amount that would be the purchaser’s base amount if, for the purposes of the definition of “base amount” in the first paragraph of section 1029.8.36.72.82.1, only the portion of the salary or wages of an employee that may reasonably be attributed to activities referred to in any of paragraphs a to d of the definition of “eligible region” in that first paragraph were considered, and if no reference were made to subparagraph v or this subparagraph vi, and

(2)  the amount that would be determined by the formula in subparagraph 2 of subparagraph v if, for the purposes of subparagraph c of the second paragraph, only the employees of the vendor who carry on activities referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1 were considered,

vii.  to have an eligible amount for the particular calendar year equal to the aggregate of

(1)  the purchaser’s eligible amount otherwise determined for the particular calendar year, and

(2)  the amount determined by the formula

D × G, and

viii.  to have an amount that would be the purchaser’s eligible amount for the particular calendar year if, for the purposes of the definition of “eligible amount” in the first paragraph of section 1029.8.36.72.82.1, only the portion of the salary or wages of an employee that may reasonably be attributed to activities referred to in any of paragraphs a to d of the definition of “eligible region” in that first paragraph were considered, that is equal to the aggregate of

(1)  the amount that would be the purchaser’s eligible amount for the particular calendar year if, for the purposes of the definition of “eligible amount” in the first paragraph of section 1029.8.36.72.82.1, only the portion of the salary or wages of an employee that may reasonably be attributed to activities referred to in any of paragraphs a to d of the definition of “eligible region” in that first paragraph were considered, and if no reference were made to subparagraph vii or this subparagraph viii, and

(2)  the amount that would be determined by the formula in subparagraph 2 of subparagraph vii if, for the purposes of subparagraph d of the second paragraph, only the employees of the vendor who carry on activities referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1 were considered; and

(d)  if the particular corporation is a corporation that is associated with the purchaser at the end of the particular calendar year, the following rules apply:

i.  the amount that is the aggregate referred to in subparagraph 2 of subparagraph ii of subparagraph a of the first paragraph of section 1029.8.36.72.82.3 or in subparagraph ii of subparagraph c of the first paragraph of section 1029.8.36.72.82.4, determined in respect of the purchaser, is deemed to be equal to the aggregate of

(1)  the amount of that aggregate determined without reference to this subparagraph i, and

(2)  the amount determined by the formula

E × G,

ii.  the amount that is the aggregate referred to in subparagraph 2 of subparagraph ii of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.3 or in subparagraph ii of paragraph c of section 1029.8.36.72.82.4.1, determined in respect of the purchaser, is deemed to be equal to the aggregate of

(1)  the amount of that aggregate determined without reference to this subparagraph ii, and

(2)  the amount that would be determined by the formula in subparagraph i if, for the purposes of subparagraph e of the second paragraph, only the employees of the vendor who carry on activities referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1 were considered,

iii.  the amount that is the second aggregate mentioned in the portion of subparagraph ii of subparagraph a of the first paragraph of section 1029.8.36.72.82.3 before subparagraph 1 or in the portion of subparagraph c of the first paragraph of section 1029.8.36.72.82.4 before subparagraph i, determined in respect of the purchaser for the particular calendar year, is deemed to be equal to the aggregate of

(1)  the amount of that aggregate determined without reference to this subparagraph iii for the particular calendar year, and

(2)  the amount determined by the formula

F × G, and

iv.  the amount that is the second aggregate mentioned in the portion of subparagraph ii of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.3 before subparagraph 1 or in the portion of paragraph c of section 1029.8.36.72.82.4.1 before subparagraph i, determined in respect of the purchaser for the particular calendar year, is deemed to be equal to the aggregate of

(1)  the amount of that aggregate determined without reference to this subparagraph iv for the particular calendar year, and

(2)  the amount that would be determined by the formula in subparagraph iii if, for the purposes of subparagraph f of the second paragraph, only the employees of the vendor who carry on activities referred to in any of paragraphs a to d of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.1 were considered.

In the formulas in subparagraphs a to d of the first paragraph,

(a)  A is the aggregate of all amounts each of which is,

i.  for the purposes of subparagraph i of subparagraph a of the first paragraph, the salary or wages paid by the vendor to an employee in respect of a pay period, within the vendor’s base period, for which the employee is an eligible employee, and

ii.  for the purposes of subparagraph i of subparagraph c of the first paragraph,

(1)  if the activities referred to in the first paragraph relate to a recognized business of the vendor, the salary or wages paid by the vendor to an employee in respect of a pay period, within the vendor’s base period, for which the employee is an eligible employee,

(2)  if the activities referred to in the first paragraph do not relate to a recognized business of the vendor but relate to a recognized business of the purchaser, the salary or wages of an employee paid by the vendor in respect of a pay period, within the purchaser’s base period, in which the employee reports for work at an establishment of the vendor situated in a designated region of the vendor and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the purchaser for the year in respect of a recognized business, and

(3)  if the activities referred to in the first paragraph do not relate to a recognized business of the vendor or to a recognized business of the purchaser but relate to a recognized business of another corporation with which the purchaser is associated at the end of the particular calendar year, the salary or wages of an employee paid by the vendor in respect of a pay period, within the other corporation’s base period, in which the employee reports for work at an establishment of the vendor situated in a designated region of the vendor and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the other corporation for the year in respect of a recognized business;

(b)  B is the aggregate of all amounts each of which is,

i.  for the purposes of subparagraph iii of subparagraph a of the first paragraph, the salary or wages paid by the vendor to an employee in respect of a pay period, within the particular calendar year, for which the employee is an eligible employee, and

ii.  for the purposes of subparagraph iii of subparagraph c of the first paragraph,

(1)  if the activities referred to in the first paragraph relate to a recognized business of the vendor, the salary or wages paid by the vendor to an employee in respect of a pay period, within the particular calendar year, for which the employee is an eligible employee,

(2)  if the activities referred to in the first paragraph do not relate to a recognized business of the vendor but relate to a recognized business of the purchaser, the salary or wages of an employee paid by the vendor in respect of a pay period, within the particular calendar year, in which the employee reports for work at an establishment of the vendor situated in a designated region of the vendor and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the purchaser for the year in respect of a recognized business, and

(3)  if the activities referred to in the first paragraph do not relate to a recognized business of the vendor or to a recognized business of the purchaser but relate to a recognized business of another corporation with which the purchaser is associated at the end of the particular calendar year, the salary or wages of an employee paid by the vendor in respect of a pay period, within the particular calendar year, in which the employee reports for work at an establishment of the vendor situated in a designated region of the vendor and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the other corporation for the year in respect of a recognized business;

(c)  C is the aggregate of all amounts each of which is

i.  for the purposes of subparagraph v of subparagraph a of the first paragraph, the salary or wages paid by the vendor to an employee in respect of a pay period, within the vendor’s base period, for which the employee is an eligible employee, or the salary or wages of an employee of the vendor paid by the vendor in respect of a pay period, within the vendor’s base period, in which the employee reports for work at an establishment of the vendor situated in Québec but outside a designated region of the vendor and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the vendor for the year in respect of a recognized business, and

ii.  for the purposes of subparagraph 2 of subparagraph v of subparagraph c of the first paragraph,

(1)  if the activities referred to in the first paragraph relate to a recognized business of the vendor, the salary or wages paid by the vendor to an employee in respect of a pay period, within the vendor’s base period, for which the employee is an eligible employee, or the salary or wages of an employee paid by the vendor in respect of a pay period, within the vendor’s base period, in which the employee reports for work at an establishment of the vendor situated in Québec but outside a designated region of the vendor and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the vendor for the year in respect of a recognized business,

(2)  if the activities referred to in the first paragraph do not relate to a recognized business of the vendor but relate to a recognized business of the purchaser, the salary or wages of an employee paid by the vendor in respect of a pay period, within the purchaser’s base period, in which the employee reports for work at an establishment of the vendor situated in Québec and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the purchaser for the year in respect of a recognized business, and

(3)  if the activities referred to in the first paragraph do not relate to a recognized business of the vendor or to a recognized business of the purchaser but relate to a recognized business of another corporation with which the purchaser is associated at the end of the particular calendar year, the salary or wages of an employee paid by the vendor in respect of a pay period, within the other corporation’s base period, in which the employee reports for work at an establishment of the vendor situated in Québec and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the other corporation for the year in respect of a recognized business;

(d)  D is the aggregate of all amounts each of which is

i.  for the purposes of subparagraph vii of subparagraph a of the first paragraph, the salary or wages paid by the vendor to an employee in respect of a pay period, within the particular calendar year, for which the employee is an eligible employee, or the salary or wages paid by the vendor to an employee in respect of a pay period within the particular calendar year, other than an eligible employee of the vendor for the pay period, if, in that pay period, the employee reports for work at an establishment of the vendor situated in Québec and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the vendor for the year in respect of a recognized business, and

ii.  for the purposes of subparagraph 2 of subparagraph vii of subparagraph c of the first paragraph,

(1)  if the activities referred to in the first paragraph relate to a recognized business of the vendor, the salary or wages paid by the vendor to an employee in respect of a pay period, within the particular calendar year, for which the employee is an eligible employee, or the salary or wages paid by the vendor to an employee in respect of a pay period within the particular calendar year, other than an eligible employee of the vendor for the pay period, if, in that pay period, the employee reports for work at an establishment of the vendor situated in Québec and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the vendor for the year in respect of a recognized business,

(2)  if the activities referred to in the first paragraph do not relate to a recognized business of the vendor but relate to a recognized business of the purchaser, the salary or wages of an employee paid by the vendor in respect of a pay period, within the particular calendar year, in which the employee reports for work at an establishment of the vendor situated in Québec and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the purchaser for the year in respect of a recognized business, and

(3)  if the activities referred to in the first paragraph do not relate to a recognized business of the vendor or to a recognized business of the purchaser but relate to a recognized business of another corporation with which the purchaser is associated at the end of the particular calendar year, the salary or wages of an employee paid by the vendor in respect of a pay period, within the particular calendar year, in which the employee reports for work at an establishment of the vendor situated in Québec and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the other corporation for the year in respect of a recognized business;

(e)  E is the aggregate of all amounts each of which is the salary or wages of an employee paid by the vendor in respect of a pay period, within the particular corporation’s base period, in which the employee reports for work at an establishment of the vendor situated in Québec and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the particular corporation for the year in respect of a recognized business, except if an amount is included, in respect of the employee, in relation to the vendor, in computing an amount determined under this subparagraph, in relation to another corporation that carries on a recognized business;

(f)  F is the aggregate of all amounts each of which is the salary or wages of an employee paid by the vendor in respect of a pay period, within the particular calendar year, in which the employee reports for work at an establishment of the vendor situated in Québec and spends, when at work, at least 75% of the time in undertaking, supervising or supporting work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the particular corporation for the year in respect of a recognized business, except if an amount is included, in respect of the employee, in relation to the vendor, in computing an amount determined under this subparagraph, in relation to another corporation that carries on a recognized business; and

(g)  G is the proportion that the number of the vendor’s employees referred to in any of subparagraphs a to f, as the case may be, who were assigned to the carrying on of part of the activities that diminished or ceased at the particular time is of the number of the vendor’s employees assigned to those activities immediately before the particular time.

2005, c. 23, s. 209; 2006, c. 36, s. 177.

2006-03-01

1029.8.36.72.82.10.1. Subject to sections 1029.8.36.72.82.8 and 1029.8.36.72.82.9, if, at a particular time in a particular calendar year, the activities carried on by a person or partnership, in this section referred to as the "vendor", in relation to a recognized business or a business that could qualify as a recognized business if it were carried on in a designated region, diminish or cease and it may reasonably be considered that, as a result, another person or partnership, in this section referred to as the "purchaser", that is associated with the vendor at the particular time, begins, after the particular time, to carry on similar activities in the course of carrying on such a business, or increases, after the particular time, the scope of similar activities carried on in the course of carrying on such a business, the following rules apply, for the purpose of determining the amount that a particular corporation is deemed to have paid to the Minister under this division for the taxation year in which the particular calendar year ends and for the taxation year in which a subsequent calendar year ends:

(a)  if the particular corporation is the vendor,

i.  the aggregate of all amounts each of which is the salary or wages paid by the vendor to an employee in respect of a pay period, within the vendor’s base period, for which the employee is an eligible employee, is deemed, for the purposes of subparagraph 2 of subparagraph i of subparagraph a of the first paragraph of section 1029.8.36.72.82.2, subparagraph 2 of subparagraph i of subparagraph a of the first paragraph of section 1029.8.36.72.82.3 and subparagraph ii of subparagraph a of the first paragraph of section 1029.8.36.72.82.4, to be equal to the amount by which that amount otherwise determined exceeds the amount determined by the formula

A × G,

ii.  the aggregate of all amounts each of which is the portion of a salary or wages paid by the vendor to an employee in respect of a pay period, within the vendor’s base period, for which the employee is an eligible employee, that may reasonably be attributed to activities of the employee that are referred to in any of paragraphs a to d of the definition of "eligible region" in the first paragraph of section 1029.8.36.72.82.1, is deemed, for the purposes of subparagraph 2 of subparagraph i of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.2, subparagraph 2 of subparagraph i of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.3 and subparagraph ii of paragraph a of section 1029.8.36.72.82.4.1, to be equal to the amount by which that amount otherwise determined exceeds the amount that would be determined by the formula in subparagraph i if, for the purposes of subparagraph a of the second paragraph, only the employees of the vendor who carry on such activities were considered,

iii.  the aggregate of all amounts each of which is the salary or wages paid by the vendor to an employee in respect of a pay period, within the particular calendar year, for which the employee is an eligible employee, is deemed, for the purposes of subparagraph i of subparagraph a of the first paragraph of section 1029.8.36.72.82.2, subparagraph i of subparagraph a of the first paragraph of section 1029.8.36.72.82.3 and subparagraph a of the first paragraph of section 1029.8.36.72.82.4, to be equal to the amount by which that amount otherwise determined exceeds the amount determined by the formula

B × G,

iv.  the aggregate of all amounts each of which is the portion of a salary or wages paid by the vendor to an employee in respect of a pay period, within the particular calendar year, for which the employee is an eligible employee, that may reasonably be attributed to activities of the employee that are referred to in any of paragraphs a to d of the definition of "eligible region" in the first paragraph of section 1029.8.36.72.82.1, is deemed, for the purposes of subparagraph i of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.2, subparagraph i of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.3 and paragraph a of section 1029.8.36.72.82.4.1, to be equal to the amount by which that amount otherwise determined exceeds the amount that would be determined by the formula in subparagraph iii if, for the purposes of subparagraph b of the second paragraph, only the employees of the vendor who carry on such activities were considered,

v.  the base amount of the vendor is deemed to be equal to the amount by which that amount otherwise determined exceeds the amount determined by the formula

C × G,

vi.  the amount that would be the vendor’s base amount if, for the purposes of the definition of "base amount" in the first paragraph of section 1029.8.36.72.82.1, only the portion of the salary or wages of an employee that may reasonably be attributed to activities referred to in any of paragraphs a to d of the definition of "eligible region" in the first paragraph of section 1029.8.36.72.82.1 were considered, is deemed to be equal to the amount by which that amount determined without reference to subparagraph v exceeds the amount that would be determined by the formula in subparagraph v if, for the purposes of subparagraph c of the second paragraph, only the employees of the vendor who carry on such activities were considered,

vii.  the eligible amount of the vendor for the particular calendar year is deemed to be equal to the amount by which that amount otherwise determined exceeds the amount determined by the formula

D × G, and

viii.  the amount that would be the vendor’s eligible amount for the particular calendar year if, for the purposes of the definition of "eligible amount" in the first paragraph of section 1029.8.36.72.82.1, only the portion of the salary or wages of an employee that may reasonably be attributed to activities referred to in any of paragraphs a to d of the definition of "eligible region" in the first paragraph of section 1029.8.36.72.82.1 were considered, is deemed to be equal to the amount by which that amount determined without reference to subparagraph vii exceeds the amount that would be determined by the formula in subparagraph vii if, for the purposes of subparagraph d of the second paragraph, only the employees of the vendor who carry on such activities were considered;

(b)  if the particular corporation is a corporation with which the vendor was associated at the end of the particular calendar year, the following rules apply:

i.  the amount that is the aggregate referred to in subparagraph 2 of subparagraph ii of subparagraph a of the first paragraph of section 1029.8.36.72.82.3 or in subparagraph ii of subparagraph c of the first paragraph of section 1029.8.36.72.82.4, determined in respect of the vendor, is deemed to be equal to the amount by which that amount determined without reference to this subparagraph exceeds the amount determined by the formula

E × G,

ii.  the amount that is the aggregate referred to in subparagraph 2 of subparagraph ii of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.3 or in subparagraph ii of paragraph c of section 1029.8.36.72.82.4.1, determined in respect of the vendor, is deemed to be equal to the amount by which that amount determined without reference to this subparagraph exceeds the amount that would be determined by the formula in subparagraph i if, for the purposes of subparagraph e of the second paragraph, only the employees of the vendor who carry on activities referred to in any of paragraphs a to d of the definition of "eligible region" in the first paragraph of section 1029.8.36.72.82.1 were considered,

iii.  the amount that is the second aggregate mentioned in the portion of subparagraph ii of subparagraph a of the first paragraph of section 1029.8.36.72.82.3 before subparagraph 1 or in the portion of subparagraph c of the first paragraph of section 1029.8.36.72.82.4 before subparagraph i, determined in respect of the vendor for the particular calendar year, is deemed to be equal to the amount by which that amount determined without reference to this subparagraph exceeds the amount determined by the formula

F × G, and

iv.  the amount that is the second aggregate mentioned in the portion of subparagraph ii of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.3 before subparagraph 1 or in the portion of paragraph c of section 1029.8.36.72.82.4.1 before subparagraph i, determined in respect of the vendor for the particular calendar year, is deemed to be equal to the amount by which that amount determined without reference to this subparagraph exceeds the amount that would be determined by the formula in subparagraph iii if, for the purposes of subparagraph f of the second paragraph, only the employees of the vendor who carry on activities referred to in any of paragraphs a to d of the definition of "eligible region" in the first paragraph of section 1029.8.36.72.82.1 were considered;

(c)  if the particular corporation is the purchaser, the purchaser is deemed

i.  to have paid, for the purposes of subparagraph 2 of subparagraph i of subparagraph a of the first paragraph of section 1029.8.36.72.82.2, subparagraph 2 of subparagraph i of subparagraph a of the first paragraph of section 1029.8.36.72.82.3 or subparagraph ii of subparagraph a of the first paragraph of section 1029.8.36.72.82.4, as the case may be, to employees, in respect of a pay period, within the purchaser’s base period, for which the employees are eligible employees, the amount determined by the formula

A × G,

ii.  to have paid, for the purposes of subparagraph 2 of subparagraph i of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.2, subparagraph 2 of subparagraph i of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.3 or subparagraph ii of paragraph a of section 1029.8.36.72.82.4.1, as the case may be, to employees, in respect of a pay period, within the purchaser’s base period, for which the employees are eligible employees, the amount that would be determined by the formula in subparagraph i if, for the purposes of subparagraph a of the second paragraph, only the employees of the vendor who carry on activities referred to in any of paragraphs a to d of the definition of "eligible region" in the first paragraph of section 1029.8.36.72.82.1 were considered,

iii.  to have paid, for the purposes of subparagraph i of subparagraph a of the first paragraph of section 1029.8.36.72.82.2, subparagraph i of subparagraph a of the first paragraph of section 1029.8.36.72.82.3 or subparagraph a of the first paragraph of section 1029.8.36.72.82.4, as the case may be, to employees in respect of a pay period, within the particular calendar year, for which the employees are eligible employees, the amount determined by the formula

B × G,

iv.  to have paid, for the purposes of subparagraph i of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.2, subparagraph i of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.3 or paragraph a of section 1029.8.36.72.82.4.1, as the case may be, to employees in respect of a pay period, within the particular calendar year, for which the employees are eligible employees, the amount that would be determined by the formula in subparagraph iii if, for the purposes of subparagraph b of the second paragraph, only the employees of the vendor who carry on activities referred to in any of paragraphs a to d of the definition of "eligible region" in the first paragraph of section 1029.8.36.72.82.1 were considered,

v.  to have a base amount equal to the aggregate of

(1)  the purchaser’s base amount otherwise determined, and

(2)  the amount determined by the formula

C × G,

vi.  to have an amount that would be the purchaser’s base amount if, for the purposes of the definition of "base amount" in the first paragraph of section 1029.8.36.72.82.1, only the portion of the salary or wages of an employee that may reasonably be attributed to activities referred to in any of paragraphs a to d of the definition of "eligible region" in that first paragraph were considered, that is equal to the aggregate of

(1)  the amount that would be the purchaser’s base amount if, for the purposes of the definition of "base amount" in the first paragraph of section 1029.8.36.72.82.1, only the portion of the salary or wages of an employee that may reasonably be attributed to activities referred to in any of paragraphs a to d of the definition of "eligible region" in that first paragraph were considered, and if no reference were made to subparagraph v or this subparagraph vi, and

(2)  the amount that would be determined by the formula in subparagraph 2 of subparagraph v if, for the purposes of subparagraph c of the second paragraph, only the employees of the vendor who carry on activities referred to in any of paragraphs a to d of the definition of "eligible region" in the first paragraph of section 1029.8.36.72.82.1 were considered,

vii.  to have an eligible amount for the particular calendar year equal to the aggregate of

(1)  the purchaser’s eligible amount otherwise determined for the particular calendar year, and

(2)  the amount determined by the formula

D × G, and

viii.  to have an amount that would be the purchaser’s eligible amount for the particular calendar year if, for the purposes of the definition of "eligible amount" in the first paragraph of section 1029.8.36.72.82.1, only the portion of the salary or wages of an employee that may reasonably be attributed to activities referred to in any of paragraphs a to d of the definition of "eligible region" in that first paragraph were considered, that is equal to the aggregate of

(1)  the amount that would be the purchaser’s eligible amount for the particular calendar year if, for the purposes of the definition of "eligible amount" in the first paragraph of section 1029.8.36.72.82.1, only the portion of the salary or wages of an employee that may reasonably be attributed to activities referred to in any of paragraphs a to d of the definition of "eligible region" in that first paragraph were considered, and if no reference were made to subparagraph vii or this subparagraph viii, and

(2)  the amount that would be determined by the formula in subparagraph 2 of subparagraph vii if, for the purposes of subparagraph d of the second paragraph, only the employees of the vendor who carry on activities referred to in any of paragraphs a to d of the definition of "eligible region" in the first paragraph of section 1029.8.36.72.82.1 were considered; and

(d)  if the particular corporation is a corporation that is associated with the purchaser at the end of the particular calendar year, the following rules apply:

i.  the amount that is the aggregate referred to in subparagraph 2 of subparagraph ii of subparagraph a of the first paragraph of section 1029.8.36.72.82.3 or in subparagraph ii of subparagraph c of the first paragraph of section 1029.8.36.72.82.4, determined in respect of the purchaser, is deemed to be equal to the aggregate of

(1)  the amount of that aggregate determined without reference to this subparagraph i, and

(2)  the amount determined by the formula

E × G,

ii.  the amount that is the aggregate referred to in subparagraph 2 of subparagraph ii of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.3 or in subparagraph ii of paragraph c of section 1029.8.36.72.82.4.1, determined in respect of the purchaser, is deemed to be equal to the aggregate of

(1)  the amount of that aggregate determined without reference to this subparagraph ii, and

(2)  the amount that would be determined by the formula in subparagraph i if, for the purposes of subparagraph e of the second paragraph, only the employees of the vendor who carry on activities referred to in any of paragraphs a to d of the definition of "eligible region" in the first paragraph of section 1029.8.36.72.82.1 were considered,

iii.  the amount that is the second aggregate mentioned in the portion of subparagraph ii of subparagraph a of the first paragraph of section 1029.8.36.72.82.3 before subparagraph 1 or in the portion of subparagraph c of the first paragraph of section 1029.8.36.72.82.4 before subparagraph i, determined in respect of the purchaser for the particular calendar year, is deemed to be equal to the aggregate of

(1)  the amount of that aggregate determined without reference to this subparagraph iii for the particular calendar year, and

(2)  the amount determined by the formula

F × G, and

iv.  the amount that is the second aggregate mentioned in the portion of subparagraph ii of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.3 before subparagraph 1 or in the portion of paragraph c of section 1029.8.36.72.82.4.1 before subparagraph i, determined in respect of the purchaser for the particular calendar year, is deemed to be equal to the aggregate of

(1)  the amount of that aggregate determined without reference to this subparagraph iv for the particular calendar year, and

(2)  the amount that would be determined by the formula in subparagraph iii if, for the purposes of subparagraph f of the second paragraph, only the employees of the vendor who carry on activities referred to in any of paragraphs a to d of the definition of "eligible region" in the first paragraph of section 1029.8.36.72.82.1 were considered.

In the formulas in subparagraphs a to d of the first paragraph,

(a)  A is the aggregate of all amounts each of which is the salary or wages paid by the vendor to an employee in respect of a pay period, within the vendor’s base period, for which the employee is an eligible employee;

(b)  B is the aggregate of all amounts each of which is the salary or wages paid by the vendor to an employee in respect of a pay period, within the particular calendar year, for which the employee is an eligible employee;

(c)  C is the aggregate of all amounts each of which is

i.  the salary or wages paid by the vendor to an employee in respect of a pay period, within the vendor’s base period, for which the employee is an eligible employee, or

ii.  the salary or wages of an employee who reports for work at an establishment of the vendor situated in Québec but outside a designated region of the vendor, paid by the vendor in respect of a pay period, within the vendor’s base period, throughout which the employee spends, when at work, at least 75% of the time in undertaking, supervising or supporting, in an establishment of the vendor situated in Québec or elsewhere, but in connection with the mandates attributable to such an establishment, work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the vendor for the year in respect of a recognized business;

(d)  D is the aggregate of all amounts each of which is

i.  the salary or wages paid by the vendor to an employee in respect of a pay period, within the particular calendar year, for which the employee is an eligible employee, or

ii.  the salary or wages of an employee who reports for work at an establishment of the vendor situated in Québec, other than an employee referred to in subparagraph i, paid by the vendor in respect of a pay period, within the particular calendar year, throughout which the employee spends, when at work, at least 75% of the time in undertaking, supervising or supporting, in an establishment of the vendor situated in Québec or elsewhere, but in connection with the mandates attributable to such an establishment, work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the vendor for the year in respect of a recognized business;

(e)  E is the aggregate of all amounts each of which is the salary or wages of an employee who reports for work at an establishment of the vendor situated in Québec, paid by the vendor in respect of a pay period, within the particular corporation’s base period, throughout which the employee spends, when at work, at least 75% of the time in undertaking, supervising or supporting, in an establishment of the vendor situated in Québec or elsewhere, but in connection with the mandates attributable to such an establishment, work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the particular corporation for the year in respect of a recognized business, except if an amount is included, in respect of the employee, in relation to the vendor, in computing an amount determined under this subparagraph, in relation to another corporation that carries on a recognized business;

(f)  F is the aggregate of all amounts each of which is the salary or wages of an employee who reports for work at an establishment of the vendor situated in Québec, paid by the vendor in respect of a pay period, within the particular calendar year, throughout which the employee spends, when at work, at least 75% of the time in undertaking, supervising or supporting, in an establishment of the vendor situated in Québec or elsewhere, but in connection with the mandates attributable to such an establishment, work that is directly related to activities of the vendor that are described in a qualification certificate issued, for the purposes of this division, to the particular corporation for the year in respect of a recognized business, except if an amount is included, in respect of the employee, in relation to the vendor, in computing an amount determined under this subparagraph, in relation to another corporation that carries on a recognized business; and

(g)  G is the proportion that the number of the vendor’s employees referred to in any of subparagraphs a to f, as the case may be, who were assigned to the carrying on of part of the activities that diminished or ceased at the particular time is of the number of the vendor’s employees assigned to those activities immediately before the particular time.

2005, c. 23, s. 209.