I-3 - Taxation Act

Section 1129.60.1 Disposition versions

2009-05-15

1129.60.1. If a corporation purported to renounce an amount in a particular calendar year under section 359.2 or 359.2.1, because of the application of section 359.8, in respect of expenses it has incurred in the subsequent calendar year, and if those expenses are deemed under section 359.8.1 to have been incurred on the last day of the calendar year preceding the particular calendar year, the following rules apply:

(a)  the corporation shall pay a tax, for each month of the particular calendar year, except the month of January, equal to the amount determined by the formula

[(A - B)/2] × (C/12); and

(b)  the corporation shall pay a tax, for each month of the subsequent calendar year, equal to the amount determined by the formula

[(A - B)/2] × (C/12 + D/10).

In the formulas in the first paragraph,

(a)  A is the aggregate of all amounts each of which is an amount that the corporation purported to renounce in the particular calendar year under section 359.2 or 359.2.1, because of the application of section 359.8, in respect of expenses incurred or to be incurred in connection with production or potential production in Québec;

(b)  B is the aggregate of all the expenses that are incurred by the corporation at or before the end of the month in the particular calendar year or in the subsequent calendar year and that relate to a renunciation in respect of which an amount is included in the aggregate referred to in subparagraph a;

(c)  C is the rate of interest prescribed for the purposes of subsection 3 of section 164 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) for the month; and

(d)  D is 1 if the month for which a tax is determined under this Part for the subsequent taxation year is the month of December of that year, and zero in any other case.

2009, c. 5, s. 532.