I-3 - Taxation Act

Section 1135.7.1 Disposition versions

2009-05-15

1135.7.1. If a partnership pays at a particular time in a particular fiscal period, pursuant to a legal obligation, a particular amount, in relation to costs incurred to acquire a property described in section 1135.3.1, that may reasonably be considered to be a repayment of an amount of assistance referred to in subparagraph ii of subparagraph b of the first paragraph of section 1135.1 that, for the purpose of determining the amount that a corporation that is a member of the partnership could deduct, in respect of those costs, in computing its tax otherwise payable under this Part for a taxation year in which ends a fiscal period of the partnership that precedes the particular fiscal period, reduced the amount determined, in respect of the corporation, under that subparagraph ii, the following rules apply:

(a)  the particular amount is deemed, for the purposes of sections 1135.1 to 1135.12, to have been paid at the particular time by the partnership as costs to acquire, in the particular fiscal period, a property of which the partnership is the owner at the end of that particular fiscal period and that meets the conditions set out in section 1135.3.1; and

(b)  the costs referred to in subparagraph a are deemed to be related to a business that the partnership carries on in the particular fiscal period in Québec and included, at the end of that fiscal period, in the capital cost of the property.

2006, c. 36, s. 259; 2007, c. 12, s. 284; 2009, c. 5, s. 550.

2007-11-07

1135.7.1. If a partnership pays, at a particular time in a particular fiscal period and before 1 January 2011, pursuant to a legal obligation, a particular amount, in relation to costs incurred to acquire a property described in section 1135.3.1, that may reasonably be considered to be a repayment of an amount of assistance referred to in subparagraph ii of subparagraph b of the first paragraph of section 1135.1 that, for the purpose of determining the amount that a corporation that is a member of the partnership could deduct, in respect of those costs, in computing its tax otherwise payable under this Part for a taxation year in which ends a fiscal period of the partnership that precedes the particular fiscal period, reduced the amount determined, in respect of the corporation, under that subparagraph ii, the following rules apply:

(a)  the particular amount is deemed, for the purposes of sections 1135.1 to 1135.12, to have been paid at the particular time by the partnership as costs to acquire, in the particular fiscal period, a property of which the partnership is the owner at the end of that particular fiscal period and that meets the conditions set out in section 1135.3.1; and

(b)  the costs referred to in subparagraph a are deemed to be related to a business that the partnership carries on in the particular fiscal period in Québec and included, at the end of that fiscal period, in the capital cost of the property.

2006, c. 36, s. 259; 2007, c. 12, s. 284.

2006-12-06

1135.7.1. If a partnership pays, at a particular time of a particular fiscal period and before 1 January 2011, pursuant to a legal obligation, a particular amount, in relation to costs incurred to acquire a property described in section 1135.3.1, that may reasonably be considered to be a repayment of an amount of assistance referred to in subparagraph ii of subparagraph b of the first paragraph of section 1135.1 or in the second paragraph of section 1135.2 or of a benefit or advantage referred to in section 1135.4 that reduced the amount determined, in respect of a particular corporation that is a member of the partnership, under that subparagraph ii of subparagraph b of the first paragraph of section 1135.1, the first paragraph of section 1135.2 or paragraph b of section 1135.4, as the case may be, for the purpose of determining the amount that the particular corporation could deduct, in respect of those costs, in computing its tax otherwise payable under this Part for a taxation year of the corporation in which ends a fiscal period of the partnership that precedes the particular fiscal period, or in respect of which the particular corporation has paid tax under Part VI.1.1 in relation to a preceding taxation year, the following rules apply:

(a)  the particular amount is deemed, for the purposes of sections 1135.1 to 1135.12, to have been paid at the particular time by the partnership as costs to acquire, in the particular fiscal period, a property of which the partnership is the owner at the end of that particular fiscal period and that meets the conditions set out in section 1135.3.1; and

(b)  the costs referred to in subparagraph a are deemed to be related to a business that the partnership carries on in the particular fiscal period in Québec and included, at the end of that fiscal period, in the capital cost of the property.

For the purposes of the first paragraph, an amount of assistance, a benefit or an advantage is deemed to be repaid, at a particular time, by a partnership, pursuant to a legal obligation, where that amount

(a)  reduced the amount determined in accordance with subparagraph ii of subparagraph b of the first paragraph of section 1135.1, the first paragraph of section 1135.2 or paragraph b of section 1135.4, as the case may be, for the purpose of determining the amount that a particular corporation that is a member of the partnership could deduct, in respect of the costs, in computing its tax otherwise payable for a taxation year under this Part, or is an amount in respect of which the particular corporation has paid tax under Part VI.1.1;

(b)  was not received by the partnership; and

(c)  ceased at the particular time to be an amount that the partnership may reasonably expect to receive.

2006, c. 36, s. 259.