Légis Québec

Consolidated Statutes and Regulations Consolidated Statutes Consolidated Regulations Annual Statutes and Regulations Annual Statutes Annual Regulations Additional information Québec Official Publisher What’s new? Information note Policy of the Minister of Justice Laws: Amendments Laws: Provisions not in force Laws: Provisions brought into force Annual Statutes: PDF versions since 1996 Regulations: Amendments Annual Regulations: PDF versions since 1996 Court Decisions

I-3 - Taxation Act

Full text

In force date

2017-02-08 Show full text at this date

1029.8.36.72.82.23. Subject to sections 1029.8.36.72.82.20 and 1029.8.36.72.82.21, 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 an eligible 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 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

A × D,

i.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 1029.8.36.72.82.13, only the portion of the salary or wages of an employee that may reasonably be attributed to an activity described in any of paragraphs b and d to f of the definition of “eligible region” in the first paragraph of that section were considered, is deemed 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 i of subparagraph a of the second paragraph, only the employees of the vendor who carry on such an activity were considered,

ii. 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

B × D, and

iii. 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 1029.8.36.72.82.13, only the portion of the salary or wages of an employee that may reasonably be attributed to an activity described in any of paragraphs b and d to f of the definition of “eligible region” in the first paragraph of that section were considered, is deemed to be equal to the amount by which that amount otherwise determined exceeds the amount that would be determined under subparagraph ii if, for the purposes of subparagraph i of subparagraph b 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 1029.8.36.72.82.15 or in subparagraph ii of paragraph c of section 1029.8.36.72.82.16, 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

C × D,

i.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 1029.8.36.72.82.15 or in subparagraph ii of paragraph c of section 1029.8.36.72.82.16.1, determined in respect of the vendor, is deemed to be equal to the amount by which that amount determined without reference to this subparagraph i.1 exceeds the amount that would be determined by the formula in subparagraph i if, for the purposes of subparagraph c of the second paragraph, only the employees of the vendor who carry on an activity described in any of paragraphs b and d to f of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.13 were considered,

ii. the amount that is the second aggregate mentioned in the portion of subparagraph ii of subparagraph a of the first paragraph of section 1029.8.36.72.82.15 before subparagraph 1 or in the portion of paragraph c of section 1029.8.36.72.82.16 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 for the particular calendar year by the formula in subparagraph i if subparagraph c of the second paragraph were read with “paid by the vendor in respect of a pay period, ended in the particular corporation’s base period” replaced by “paid by the vendor, before the particular time, in respect of a pay period that ended in the particular calendar year”, and

iii. the amount that is the second aggregate mentioned in the portion of subparagraph ii of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.15 before subparagraph 1 or in the portion of paragraph c of section 1029.8.36.72.82.16.1 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 iii exceeds the amount that would be determined for the particular calendar year by the formula in subparagraph i if subparagraph c of the second paragraph were read as if “paid by the vendor in respect of a pay period, ended in the particular corporation’s base period” was replaced by “paid by the vendor, before the particular time, in respect of a pay period that ended in the particular calendar year”, and if, for the purposes of that subparagraph c, only the employees of the vendor who carry on an activity described in any of paragraphs b and d to f of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.13 were considered;

i. 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

A × D,

i.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 1029.8.36.72.82.13, only the portion of the salary or wages of an employee that may reasonably be attributed to an activity described in any of paragraphs b and d to f of the definition of “eligible region” in the first paragraph of that section were considered, 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 1029.8.36.72.82.13, only the portion of the salary or wages of an employee that may reasonably be attributed to an activity described in paragraph b of the definition of “eligible region” in the first paragraph of that section were considered, otherwise determined, and

(2) the amount that would be determined by the formula in subparagraph 2 of subparagraph i if, for the purposes of subparagraph ii of subparagraph a of the second paragraph, only the employees of the vendor who carry on an activity described in paragraph b of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.13 were considered,

ii. 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

B × D, and

iii. to have an amount that would be the purchaser’s eligible amount if, for the purposes of the definition of “eligible amount” in the first paragraph of section 1029.8.36.72.82.13, only the portion of the salary or wages of an employee that may reasonably be attributed to an activity described in any of paragraphs b and d to f of the definition of “eligible region” in the first paragraph of that section were considered, for the particular calendar year, equal to the aggregate of

(1) the amount that would be the purchaser’s eligible amount if, for the purposes of the definition of “eligible amount” in the first paragraph of section 1029.8.36.72.82.13, only the portion of the salary or wages of an employee that may reasonably be attributed to an activity described in paragraph b of the definition of “eligible region” in the first paragraph of that section were considered, for the particular calendar year, otherwise determined, and

(2) the amount that would be determined by the formula in subparagraph 2 of subparagraph ii if, for the purposes of subparagraph ii of subparagraph b of the second paragraph, only the employees of the vendor who carry on an activity described in paragraph b of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.13 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 1029.8.36.72.82.15 or in subparagraph ii of paragraph c of section 1029.8.36.72.82.16, 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

C × D,

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

(2) the amount that would be determined by the formula in subparagraph 2 of subparagraph i if, for the purposes of subparagraph c of the second paragraph, only the employees of the vendor who carry on an activity described in any of paragraphs b and d to f of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.13 were considered,

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

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

(2) the amount that would be determined for the particular calendar year, in respect of the purchaser, by the formula in subparagraph 2 of subparagraph i if subparagraph c of the second paragraph were read as if “paid by the vendor in respect of a pay period, ended in the particular corporation’s base period” was replaced by “paid by the vendor, before the particular time, in respect of a pay period that ended in the particular calendar year”, and if, for the purposes of that subparagraph c, only the employees of the vendor who carry on an activity described in any of paragraphs b and d to f of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.13 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 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 an eligible region 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 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 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 an eligible region 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 an eligible region 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 ii of subparagraph a of the first paragraph, the salary or wages paid by the vendor to an employee before the particular time 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 before the particular time 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 ii 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 before the particular time 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 before the particular time 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 before the particular time 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);

(c) C 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 to the particular corporation, for the purposes of this division, for the year in respect of a recognized business, unless 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

(d) D is the proportion that the number of the vendor’s employees referred to in any of subparagraphs a to c, 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. 210; 2006, c. 36, s. 183; 2009, c. 5, s. 450; 2010, c. 25, s. 169; 2011, c. 1, s. 79; 2017, c. 1, s. 290.

2011-02-17 Show full text at this date

(a) if the particular corporation is the vendor,

i. 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

A × D,

i.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 1029.8.36.72.82.13, only the portion of the salary or wages of an employee that may reasonably be attributed to an activity described in paragraph b of the definition of “eligible region” in the first paragraph of that section were considered, is deemed 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 i of subparagraph a of the second paragraph, only the employees of the vendor who carry on such an activity were considered,

ii. 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

B × D, and

iii. 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 1029.8.36.72.82.13, only the portion of the salary or wages of an employee that may reasonably be attributed to an activity described in paragraph b of the definition of “eligible region” in the first paragraph of that section were considered, is deemed to be equal to the amount by which that amount otherwise determined exceeds the amount that would be determined under subparagraph ii if, for the purposes of subparagraph i of subparagraph b 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:

C × D,

i.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 1029.8.36.72.82.15 or in subparagraph ii of paragraph c of section 1029.8.36.72.82.16.1, determined in respect of the vendor, is deemed to be equal to the amount by which that amount determined without reference to this subparagraph i.1 exceeds the amount that would be determined by the formula in subparagraph i if, for the purposes of subparagraph c of the second paragraph, only the employees of the vendor who carry on an activity described in paragraph b of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.13 were considered,

iii. the amount that is the second aggregate mentioned in the portion of subparagraph ii of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.15 before subparagraph 1 or in the portion of paragraph c of section 1029.8.36.72.82.16.1 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 iii exceeds the amount that would be determined for the particular calendar year by the formula in subparagraph i if subparagraph c of the second paragraph were read as if “paid by the vendor in respect of a pay period, ended in the particular corporation’s base period” was replaced by “paid by the vendor, before the particular time, in respect of a pay period that ended in the particular calendar year”, and if, for the purposes of that subparagraph c, only the employees of the vendor who carry on an activity described in paragraph b of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.13 were considered;

i. 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

A × D,

i.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 1029.8.36.72.82.13, only the portion of the salary or wages of an employee that may reasonably be attributed to an activity described in paragraph b of the definition of “eligible region” in the first paragraph of that section were considered, equal to the aggregate of

ii. 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

B × D, and

iii. to have an amount that would be the purchaser’s eligible amount if, for the purposes of the definition of “eligible amount” in the first paragraph of section 1029.8.36.72.82.13, only the portion of the salary or wages of an employee that may reasonably be attributed to an activity described in paragraph b of the definition of “eligible region” in the first paragraph of that section were considered, for the particular calendar year, equal to the aggregate of

(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 1029.8.36.72.82.15 or in subparagraph ii of paragraph c of section 1029.8.36.72.82.16, 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

C × D,

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

(2) the amount that would be determined by the formula in subparagraph 2 of subparagraph i if, for the purposes of subparagraph c of the second paragraph, only the employees of the vendor who carry on an activity described in paragraph b of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.13 were considered,

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

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

(2) the amount that would be determined for the particular calendar year, in respect of the purchaser, by the formula in subparagraph 2 of subparagraph i if subparagraph c of the second paragraph were read as if “paid by the vendor in respect of a pay period, ended in the particular corporation’s base period” was replaced by “paid by the vendor, before the particular time, in respect of a pay period that ended in the particular calendar year”, and if, for the purposes of that subparagraph c, only the employees of the vendor who carry on an activity described in paragraph b of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.13 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,

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

(3) (subparagraph repealed);

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

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

(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 before the particular time 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);

2005, c. 23, s. 210; 2006, c. 36, s. 183; 2009, c. 5, s. 450; 2010, c. 25, s. 169; 2011, c. 1, s. 79.

2010-10-27 Show full text at this date

(a) if the particular corporation is the vendor,

i. 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

A × D,

i.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 1029.8.36.72.82.13, only the portion of the salary or wages of an employee that may reasonably be attributed to an activity described in paragraph b of the definition of “eligible region” in the first paragraph of that section were considered, is deemed 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 i of subparagraph a of the second paragraph, only the employees of the vendor who carry on such an activity were considered,

ii. 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

B × D, and

iii. 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 1029.8.36.72.82.13, only the portion of the salary or wages of an employee that may reasonably be attributed to an activity described in paragraph b of the definition of “eligible region” in the first paragraph of that section were considered, is deemed to be equal to the amount by which that amount otherwise determined exceeds the amount that would be determined under subparagraph ii if, for the purposes of subparagraph i of subparagraph b 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:

C × D,

i.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 1029.8.36.72.82.15 or in subparagraph ii of paragraph c of section 1029.8.36.72.82.16.1, determined in respect of the vendor, is deemed to be equal to the amount by which that amount determined without reference to this subparagraph i.1 exceeds the amount that would be determined by the formula in subparagraph i if, for the purposes of subparagraph c of the second paragraph, only the employees of the vendor who carry on an activity described in paragraph b of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.13 were considered,

ii. the amount that is the second aggregate mentioned in the portion of subparagraph ii of subparagraph a of the first paragraph of section 1029.8.36.72.82.15 before subparagraph 1 or in the portion of paragraph c of section 1029.8.36.72.82.16 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 for the particular calendar year by the formula in subparagraph i if subparagraph c of the second paragraph were read with “paid by the vendor in respect of a pay period, ended in the vendor’s base period” replaced by “paid by the vendor, before the particular time, in respect of a pay period that ended in the particular calendar year”, and

iii. the amount that is the second aggregate mentioned in the portion of subparagraph ii of subparagraph a.1 of the first paragraph of section 1029.8.36.72.82.15 before subparagraph 1 or in the portion of paragraph c of section 1029.8.36.72.82.16.1 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 iii exceeds the amount that would be determined for the particular calendar year by the formula in subparagraph i if subparagraph c of the second paragraph were read as if “paid by the vendor in respect of a pay period, ended in the particular corporation’s base period” was replaced by “paid by the vendor, before the particular time, in respect of a pay period that ended in the particular calendar year”, and if, for the purposes of that subparagraph c, only the employees of the vendor who carry on an activity described in paragraph b of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.13 were considered;

i. 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

A × D,

i.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 1029.8.36.72.82.13, only the portion of the salary or wages of an employee that may reasonably be attributed to an activity described in paragraph b of the definition of “eligible region” in the first paragraph of that section were considered, equal to the aggregate of

ii. 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

B × D, and

iii. to have an amount that would be the purchaser’s eligible amount if, for the purposes of the definition of “eligible amount” in the first paragraph of section 1029.8.36.72.82.13, only the portion of the salary or wages of an employee that may reasonably be attributed to an activity described in paragraph b of the definition of “eligible region” in the first paragraph of that section were considered, for the particular calendar year, equal to the aggregate of

(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 1029.8.36.72.82.15 or in subparagraph ii of paragraph c of section 1029.8.36.72.82.16, 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

C × D,

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

(2) the amount that would be determined by the formula in subparagraph 2 of subparagraph i if, for the purposes of subparagraph c of the second paragraph, only the employees of the vendor who carry on an activity described in paragraph b of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.13 were considered,

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

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

(2) the amount that would be determined for the particular calendar year, in respect of the purchaser, by the formula in subparagraph 2 of subparagraph i if subparagraph c of the second paragraph were read as if “paid by the vendor in respect of a pay period, ended in the particular corporation’s base period” was replaced by “paid by the vendor, before the particular time, in respect of a pay period that ended in the particular calendar year”, and if, for the purposes of that subparagraph c, only the employees of the vendor who carry on an activity described in paragraph b of the definition of “eligible region” in the first paragraph of section 1029.8.36.72.82.13 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,

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

(3) (subparagraph repealed);

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

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

(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 before the particular time 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);

2005, c. 23, s. 210; 2006, c. 36, s. 183; 2009, c. 5, s. 450; 2010, c. 25, s. 169.

2009-05-15 Show full text at this date

(a) if the particular corporation is the vendor,

i. 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

A × D, and

ii. 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

B × D;

(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:

C × D, and

ii. the amount that is the second aggregate mentioned in the portion of subparagraph ii of subparagraph a of the first paragraph of section 1029.8.36.72.82.15 before subparagraph 1 or in the portion of paragraph c of section 1029.8.36.72.82.16 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 for the particular calendar year by the formula in subparagraph i if subparagraph c of the second paragraph were read with “paid by the vendor in respect of a pay period, within the vendor’s base period” replaced by “paid by the vendor, before the particular time, in respect of a pay period, within the particular calendar year”;

i. 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

A × D, and

ii. 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

B × D; 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 1029.8.36.72.82.15 or in subparagraph ii of paragraph c of section 1029.8.36.72.82.16, 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

C × D, and

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

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 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 an eligible region 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 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 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 an eligible region 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 an eligible region 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 ii of subparagraph a of the first paragraph, the salary or wages paid by the vendor to an employee before the particular time 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 before the particular time 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 ii 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 before the particular time 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 before the particular time 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 before the particular time 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);

(c) C 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 to the particular corporation, for the purposes of this division, for the year in respect of a recognized business, unless 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

2005, c. 23, s. 210; 2006, c. 36, s. 183; 2009, c. 5, s. 450.

2006-12-06 Show full text at this date

1029.8.36.72.82.23. Subject to sections 1029.8.36.72.82.20 and 1029.8.36.72.82.21, 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 an eligible 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 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

A × D, and

ii. 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

B × D;

(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:

C × D, and

ii. the amount that is the second aggregate mentioned in the portion of subparagraph ii of subparagraph a of the first paragraph of section 1029.8.36.72.82.15 before subparagraph 1 or in the portion of paragraph c of section 1029.8.36.72.82.16 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 for the particular calendar year by the formula in subparagraph i if subparagraph c of the second paragraph were read with “paid by the vendor in respect of a pay period, within the vendor’s base period” replaced by “paid by the vendor, before the particular time, in respect of a pay period, within the particular calendar year”;

i. 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

A × D, and

ii. 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

B × D; 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 1029.8.36.72.82.15 or in subparagraph ii of paragraph c of section 1029.8.36.72.82.16, 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

C × D, and

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

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

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

ii. for the purposes of subparagraph 2 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 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 an eligible region 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 an eligible region 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 an eligible region 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 ii of subparagraph a of the first paragraph, the salary or wages paid by the vendor to an employee before the particular time 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 before the particular time 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 ii 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 before the particular time 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 before the particular time 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 before the particular time 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 before the particular time 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;

i. for the purposes of subparagraph i of subparagraph b of the first paragraph, 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 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

ii. for the purposes of subparagraph 2 of subparagraph i of subparagraph d 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 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 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, except if an amount is included, in respect of the employee, in relation to the vendor, in computing an amount determined under this subparagraph ii, in relation to another corporation that carries on 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, except if an amount is included, in respect of the employee, in relation to the vendor, in computing an amount determined under this subparagraph ii, in relation to another corporation that carries on 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, except if an amount is included, in respect of the employee, in relation to the vendor, in computing an amount determined under this subparagraph ii, in relation to another corporation that carries on a recognized business; and

2005, c. 23, s. 210; 2006, c. 36, s. 183.

2006-03-01 Show full text at this date

1029.8.36.72.82.23. Subject to sections 1029.8.36.72.82.20 and 1029.8.36.72.82.21, 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 an eligible 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 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

A × D, and

ii. 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

B × D;

(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:

C × D, and

ii. the amount that is the second aggregate mentioned in the portion of subparagraph ii of subparagraph a of the first paragraph of section 1029.8.36.72.82.15 before subparagraph 1 or in the portion of paragraph c of section 1029.8.36.72.82.16 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 for the particular calendar year by the formula in subparagraph i if subparagraph c of the second paragraph were read with "paid by the vendor in respect of a pay period, within the vendor’s base period" replaced by "paid by the vendor, before the particular time, in respect of a pay period, within the particular calendar year";

i. 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

A × D, and

ii. 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

B × D; 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 1029.8.36.72.82.15 or in subparagraph ii of paragraph c of section 1029.8.36.72.82.16, 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

C × D, and

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

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 of an employee who reports for work at an establishment of the vendor situated in Québec but outside an eligible region, 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;

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

i. the salary or wages paid by the vendor to an employee, before the particular time, 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, before the particular time, 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;

(c) C 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 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 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

2005, c. 23, s. 210.

I-3 - Taxation Act

Section 1029.8.36.72.82.23Disposition versions

2017-02-08 Show full text at this date

2011-02-17 Show full text at this date

2010-10-27 Show full text at this date

2009-05-15 Show full text at this date

2006-12-06 Show full text at this date

2006-03-01 Show full text at this date

Section 1029.8.36.72.82.23
Disposition versions