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I-3 - Taxation Act

Section 1049.6
Disposition versions

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1049.6. Every qualified legal person, within the meaning of the Act respecting Québec business investment companies (chapter S-29.1), incurs a penalty equal to 40% of the amount of a qualified investment made by a Québec business investment company in the qualified legal person, where the qualified legal person uses funds, during the 24 months following the date of that qualified investment and without the approval of the body designated under section 1 of that Act, to
(a)  repay a creditor who is a shareholder of the Québec business investment company or of the qualified legal person or a person with whom the creditor does not deal at arm’s length or a corporation that is associated with the qualified legal person;
(b)  make a loan;
(c)  purchase parcels of land with the intention of selling them;
(d)  make investments outside Québec not directly related to the operations of the corporation;
(e)  purchase or acquire shares of other corporations or all or substantially all of the assets of a business;
(f)  purchase or redeem shares of its capital stock except a purchase or redemption referred to in section 1049.5.
1986, c. 15, s. 185; 1987, c. 21, s. 77; 1988, c. 4, s. 134; 1989, c. 5, s. 228; 1990, c. 7, s. 189; 1997, c. 3, s. 63; 1997, c. 14, s. 249; 1998, c. 17, s. 64; 2000, c. 39, s. 207; 2001, c. 69, s. 12; 2010, c. 37, s. 110.
1049.6. Every qualified legal person, within the meaning of the Act respecting Québec business investment companies (chapter S-29.1), incurs a penalty equal to 40% of the amount of a qualified investment made by a Québec business investment company in the qualified legal person, where the qualified legal person uses funds, during the 24 months following the date of that qualified investment and without the approval of Investissement Québec, to
(a)  repay a creditor who is a shareholder of the Québec business investment company or of the qualified legal person or a person with whom the creditor does not deal at arm’s length or a corporation that is associated with the qualified legal person;
(b)  make a loan;
(c)  purchase parcels of land with the intention of selling them;
(d)  make investments outside Québec not directly related to the operations of the corporation;
(e)  purchase or acquire shares of other corporations or all or substantially all of the assets of a business;
(f)  purchase or redeem shares of its capital stock except a purchase or redemption referred to in section 1049.5.
1986, c. 15, s. 185; 1987, c. 21, s. 77; 1988, c. 4, s. 134; 1989, c. 5, s. 228; 1990, c. 7, s. 189; 1997, c. 3, s. 63; 1997, c. 14, s. 249; 1998, c. 17, s. 64; 2000, c. 39, s. 207; 2001, c. 69, s. 12.
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