I-3 - Taxation Act

Section 1175.19.2.1 Disposition versions

2009-06-04

1175.19.2.1. For the purposes of section 1175.19.2, the amount determined in accordance with the second paragraph, in respect of a property described in any of sections 1135.3 to 1135.3.1 that a corporation has acquired in any given taxation year or that a partnership has acquired in a fiscal period that ends in any given taxation year, is deemed to be refunded to the corporation in a taxation year subsequent to the given taxation year (in this section referred to as the “repayment year”) or refunded to the partnership in a fiscal period of the partnership that ends in the repayment year if, at a particular time in the period described in the third paragraph, the property ceases, otherwise than by reason of its loss, of its involuntary destruction by fire, theft or water, or of a major breakdown of the property, to be used solely in Québec,

(a)  if the property is described in section 1135.3 or 1135.3.0.1 or paragraph b of section 1135.3.1, to earn income from a business carried on

i.  by the first purchaser of the property and that time is in the portion of that period in which the first purchaser owns the property, or

ii.  by a subsequent purchaser of the property that acquired the property in any of the circumstances in which section 130R149 of the Regulation respecting the Taxation Act (chapter I-3, r. 1) applies, and that time is in the portion of that period in which the subsequent purchaser owns the property; or

(b)  if the property is described in paragraph a of section 1135.3.1, in connection with the activities, described in subparagraph ii of paragraph a of section 1135.3.1, of a business carried on

i.  by the first purchaser of the property and that time is in the portion of that period in which the first purchaser owns the property, or

ii.  by a subsequent purchaser of the property that acquired the property in any of the circumstances in which section 130R149 of the Regulation respecting the Taxation Act applies, and that time is in the portion of that period in which the subsequent purchaser owns the property.

The amount to which the first paragraph refers is equal to the amount by which the aggregate of the costs incurred by the corporation to acquire the property in the given taxation year, or incurred by the partnership to acquire the property in the fiscal period that ends in the given taxation year, exceeds the aggregate of all amounts each of which is an amount relating to those costs that, in a taxation year preceding the repayment year but subsequent to the given taxation year, or in a fiscal period of the partnership that ends in such a year, was refunded, otherwise paid or allocated to a payment to be made by the corporation or partnership.

The period to which the first paragraph refers is the period that begins on the day after the corporation’s filing-due date for the taxation year preceding the repayment year and ends on the day that is the end of the period of 730 days following the beginning of the use of the property by the first purchaser of the property or by a subsequent purchaser that acquired the property in any of the circumstances in which section 130R149 of the Regulation respecting the Taxation Act applies, or, if it precedes the day that is the end of the 730-day period, the corporation’s filing-due date for the repayment year.

No tax is payable for a taxation year under section 1175.19.2 in respect of any given amount that is refunded or otherwise paid to the corporation or to a partnership of which the corporation is a member at the end of the partnership’s fiscal period that ends in the taxation year, or that is allocated to a payment to be made by the corporation or partnership, if the given amount is included in an amount that is deemed to have been refunded under this section in that taxation year or a preceding taxation year, or in a fiscal period of the partnership that ends in that taxation year or a preceding taxation year.

2006, c. 36, s. 266; 2007, c. 12, s. 290; 2009, c. 5, s. 568; 2009, c. 15, s. 449.

2009-05-15

1175.19.2.1. For the purposes of section 1175.19.2, the amount determined in accordance with the second paragraph, in respect of a property described in any of sections 1135.3 to 1135.3.1 that a corporation has acquired in any given taxation year or that a partnership has acquired in a fiscal period that ends in any given taxation year, is deemed to be refunded to the corporation in a taxation year subsequent to the given taxation year (in this section referred to as the “repayment year”) or refunded to the partnership in a fiscal period of the partnership that ends in the repayment year if, at a particular time in the period described in the third paragraph, the property ceases, otherwise than by reason of its loss, of its involuntary destruction by fire, theft or water, or of a major breakdown of the property, to be used solely in Québec,

(a)  if the property is described in section 1135.3 or 1135.3.0.1 or paragraph b of section 1135.3.1, to earn income from a business carried on

i.  by the first purchaser of the property and that time is in the portion of that period in which the first purchaser owns the property, or

ii.  by a subsequent purchaser of the property that acquired the property in any of the circumstances in which section 130R71 of the Regulation respecting the Taxation Act (R.R.Q., 1981, c. I-3, r. 1) applies, and that time is in the portion of that period in which the subsequent purchaser owns the property; or

(b)  if the property is described in paragraph a of section 1135.3.1, in connection with the activities, described in subparagraph ii of paragraph a of section 1135.3.1, of a business carried on

i.  by the first purchaser of the property and that time is in the portion of that period in which the first purchaser owns the property, or

ii.  by a subsequent purchaser of the property that acquired the property in any of the circumstances in which section 130R71 of the Regulation respecting the Taxation Act applies, and that time is in the portion of that period in which the subsequent purchaser owns the property.

The amount to which the first paragraph refers is equal to the amount by which the aggregate of the costs incurred by the corporation to acquire the property in the given taxation year, or incurred by the partnership to acquire the property in the fiscal period that ends in the given taxation year, exceeds the aggregate of all amounts each of which is an amount relating to those costs that, in a taxation year preceding the repayment year but subsequent to the given taxation year, or in a fiscal period of the partnership that ends in such a year, was refunded, otherwise paid or allocated to a payment to be made by the corporation or partnership.

The period to which the first paragraph refers is the period that begins on the day after the corporation’s filing-due date for the taxation year preceding the repayment year and ends on the day that is the end of the period of 730 days following the beginning of the use of the property by the first purchaser of the property or by a subsequent purchaser that acquired the property in any of the circumstances in which section 130R71 of the Regulation respecting the Taxation Act applies, or, if it precedes the day that is the end of the 730-day period, the corporation’s filing-due date for the repayment year.

No tax is payable for a taxation year under section 1175.19.2 in respect of any given amount that is refunded or otherwise paid to the corporation or to a partnership of which the corporation is a member at the end of the partnership’s fiscal period that ends in the taxation year, or that is allocated to a payment to be made by the corporation or partnership, if the given amount is included in an amount that is deemed to have been refunded under this section in that taxation year or a preceding taxation year, or in a fiscal period of the partnership that ends in that taxation year or a preceding taxation year.

2006, c. 36, s. 266; 2007, c. 12, s. 290; 2009, c. 5, s. 568.

2007-11-07

1175.19.2.1. For the purposes of section 1175.19.2, the amount determined in accordance with the second paragraph, in respect of a property described in section 1135.3 or 1135.3.1 that a corporation has acquired in any given taxation year or that a partnership has acquired in a fiscal period that ends in any given taxation year, is deemed to be refunded to the corporation in a taxation year subsequent to the given taxation year, in this section referred to as the “repayment year”, or refunded to the partnership in a fiscal period of the partnership that ends in the repayment year if, at a particular time in the period described in the third paragraph, the property ceases, otherwise than by reason of its loss, of its involuntary destruction by fire, theft or water, or of a major breakdown of the property, to be used solely in Québec,

(a)  if the property is described in section 1135.3, to earn income from a business carried on

i.  by the first purchaser of the property and that time is in the portion of that period in which the first purchaser owns the property, or

ii.  by a subsequent purchaser of the property that acquired the property in any of the circumstances in which section 130R71 of the Regulation respecting the Taxation Act (R.R.Q., 1981, chapter I-3, r. 1) applies, and that time is in the portion of that period in which the subsequent purchaser owns the property; or

(b)  if the property is described in section 1135.3.1, in connection with the activities, described in paragraph c of section 1135.3.1, of a business carried on

i.  by the first purchaser of the property and that time is in the portion of that period in which the first purchaser owns the property, or

ii.  by a subsequent purchaser of the property that acquired the property in any of the circumstances in which section 130R71 of the Regulation respecting the Taxation Act applies, and that time is in the portion of that period in which the subsequent purchaser owns the property.

The amount to which the first paragraph refers is equal to the amount by which the aggregate of the costs incurred by the corporation to acquire the property in the given taxation year, or incurred by the partnership to acquire the property in the fiscal period that ends in the given taxation year, exceeds the aggregate of all amounts each of which is an amount relating to those costs that, in a taxation year preceding the repayment year but subsequent to the given taxation year, or in a fiscal period of the partnership that ends in such a year, was refunded, otherwise paid or allocated to a payment to be made by the corporation or partnership.

The period to which the first paragraph refers is the period that begins on the day after the corporation’s filing-due date for the taxation year preceding the repayment year and ends on the day that is the end of the period of 730 days following the beginning of the use of the property by the first purchaser of the property or by a subsequent purchaser that acquired the property in any of the circumstances in which section 130R71 of the Regulation respecting the Taxation Act applies, or, if it precedes the day that is the end of the 730-day period, the corporation’s filing-due date for the repayment year.

No tax is payable for a taxation year under section 1175.19.2 in respect of any given amount that is refunded or otherwise paid to the corporation or to a partnership of which the corporation is a member at the end of the partnership’s fiscal period that ends in the taxation year, or that is allocated to a payment to be made by the corporation or partnership, if the given amount is included in an amount that is deemed to have been refunded under this section in that taxation year or a preceding taxation year, or in a fiscal period of the partnership that ends in that taxation year or a preceding taxation year.

2006, c. 36, s. 266; 2007, c. 12, s. 290.

2006-12-06

1175.19.2.1. Any corporation that, in relation to costs incurred in respect of property described in section 1135.3.1, has deducted for any taxation year, under section 1135.1 or 1135.2, an amount in computing its tax otherwise payable under Part IV for the year, shall pay, for a particular taxation year, tax equal to

(a)  the amount by which the aggregate of all amounts each of which is an amount deducted by the corporation under section 1135.1 or 1135.2, in computing its tax payable under Part IV, in respect of the costs, for a taxation year preceding the particular year, exceeds the aggregate of all amounts each of which is, in respect of the corporation, an amount determined under subparagraph b, in relation to the costs, for a taxation year preceding the particular year, if at any time between the corporation’s filing-due date for the taxation year preceding the particular year and the day after the day that is the end of the period of 730 days following the beginning of the use of the property by the first purchaser or by a subsequent purchaser of the property that acquired the property in any of the circumstances in which section 130R71 of the Regulation respecting the Taxation Act (R.R.Q., 1981, chapter I-3, r.1) applies, or, if it precedes the day that is the end of that period, the filing-due date, for the particular year, of the purchaser that is the owner of the property at the end of the particular year, the property ceases, otherwise than by reason of the loss or involuntary destruction of the property by fire, theft or water or of a major breakdown of the property, to be used solely in Québec in connection with the activities, described in paragraph c of section 1135.3.1, of a business carried on

i.  by the first purchaser of the property and if that time is also in the portion of that period in which the first purchaser owns the property, or

ii.  by a subsequent purchaser of the property that acquired the property in any of the circumstances in which section 130R71 of the Regulation respecting the Taxation Act applies, and if that time is also in the portion of that period in which the subsequent purchaser owns the property; or

(b)  if subparagraph a does not apply in the particular year or a preceding taxation year in relation to the costs, to 15% of the aggregate of

i.  if in the particular year the corporation has received, is entitled to receive or may reasonably expect to receive, on or before the corporation’s filing-due date for that particular year, an amount of government assistance or non-government assistance, attributable to such costs, other than such an amount of assistance that reduced the amount determined under subparagraph i or ii of subparagraph b of the first paragraph of section 1135.1 or under the first paragraph of section 1135.2, in respect of the corporation for the purpose of determining the amount that the corporation was entitled to deduct, in respect of the costs, in computing its tax payable under Part IV for a taxation year preceding the particular year, the lesser of the amount of that assistance and the amount by which the portion of the costs in respect of which the corporation has deducted an amount under section 1135.1 or 1135.2 in computing its tax payable under Part IV for a taxation year preceding the particular year, exceeds the aggregate of all amounts each of which is an amount determined, in respect of the costs, under this subparagraph for a taxation year preceding the particular taxation year, in relation to the corporation,

ii.  if a partnership of which the corporation is a member at the end of a fiscal period of the partnership that ends in the particular taxation year, has received, is entitled to receive or may reasonably expect to receive, on or before the day that is six months after the end of that fiscal period, an amount of government assistance or non-government assistance, attributable to such costs, other than such an amount of assistance that reduced the amount determined under subparagraph ii of subparagraph b of the first paragraph of section 1135.1 or under the first paragraph of section 1135.2, in respect of the partnership for the purpose of determining the amount that the corporation was entitled to deduct, in respect of the costs, in computing its tax payable under Part IV for a taxation year preceding the particular year, the lesser of the corporation’s share of the amount of that assistance and the amount by which the portion of the costs in respect of which the corporation has deducted an amount under section 1135.1 or 1135.2 in computing its tax payable under Part IV for a taxation year preceding the particular year, exceeds the aggregate of all amounts each of which is an amount determined, in respect of the costs, under this subparagraph for a taxation year preceding the particular taxation year, in relation to the corporation, and

iii.  if in the particular year a person or partnership has obtained, is entitled to obtain or may reasonably expect to obtain, on or before the corporation’s filing-due date for that particular year, a benefit or advantage attributable to such costs, except a benefit or advantage referred to in the second paragraph, whether in the form of a reimbursement, compensation or guarantee, in the form of proceeds of disposition of a property which exceed the fair market value of the property, or in any other form or manner, the lesser of, if the costs were incurred by the corporation, the amount of that benefit or advantage or, if the costs were incurred by a partnership of which the corporation is a member at the end of the fiscal period of the partnership that ends in the particular taxation year, the corporation’s share of the amount of that benefit or advantage and the amount by which the portion of the costs in respect of which the corporation has deducted an amount, under section 1135.1 or 1135.2, in computing its tax payable under Part IV, for a taxation year preceding the particular year exceeds the aggregate of all amounts each of which is an amount determined, in respect of the costs, under this subparagraph for a taxation year preceding the particular taxation year, in relation to the corporation.

A benefit or advantage to which subparagraph iii of subparagraph b of the first paragraph refers means a benefit or advantage

(a)  that may reasonably be attributed to the acquisition of the property; or

(b)   that reduced, in accordance with section 1135.4, the amount determined under subparagraph i or ii of subparagraph b of the first paragraph of section 1135.1 or under the first paragraph of section 1135.2, in respect of the corporation or of the partnership for the purpose of determining the amount that the corporation was entitled to deduct, in respect of the costs, in computing its tax payable under this Part for a taxation year preceding the particular year.

For the purposes of subparagraphs ii and iii of subparagraph b of the first paragraph, the share of a corporation that is a member of a partnership, for a fiscal period of that partnership, of an amount is equal to the proportion of that amount that the corporation’s share of the income or loss of the partnership for that fiscal period is of the income or loss of the partnership for that fiscal period, on the assumption that, if the income and loss of the partnership for that fiscal period are nil, the partnership’s income for that fiscal period is equal to $ 1,000,000.

2006, c. 36, s. 266.