I-3 - Taxation Act

Section 421.2 Disposition versions

2015-10-26

421.2. Section 421.1 does not apply to an amount paid or payable by a person in respect of the consumption of food or beverages or in respect of entertainment enjoyed by a person, where the amount

(a)  is paid or payable for food, beverages or entertainment provided for, or in the expectation of, compensation in the ordinary course of a business carried on by that person of providing the food, beverages or entertainment for compensation;

(b)  relates to a fund-raising event the primary purpose of which is to benefit a registered charity;

(c)  is an amount for which the person is compensated and the amount of the compensation is reasonable and specifically identified in writing to the person paying the compensation;

(d)  is an amount that is required to be included in computing any individual’s income because of the application of Chapters I and II of Title II in respect of food or beverages consumed or entertainment enjoyed by the individual or a person with whom the individual does not deal at arm’s length, or would be so required but for section 37.1.5 or subparagraph ii of paragraph a of section 42;

(d.1)  is an amount that

i.  is not paid or payable in respect of a conference, convention, seminar or similar event,

ii.  would, but for subparagraph i of paragraph a of section 42, be required to be included in computing any individual’s income for a taxation year because of the application of Chapters I and II of Title II in respect of food or beverages consumed or entertainment enjoyed by the individual or a person with whom the individual does not deal at arm’s length, and

iii.  is paid or payable in respect of the individual’s duties performed at a work site in Canada that is

(1)  outside any population centre, as defined by the last Census Dictionary published by Statistics Canada before the year, that has a population of at least 40,000 individuals as determined in the last census published by Statistics Canada before the year, and

(2)  at least 30 km from the nearest point on the boundary of the nearest such population centre referred to in subparagraph 1;

(d.2)  is an amount that

i.  is not paid or payable in respect of entertainment or of a conference, convention, seminar or similar event,

ii.  would, but for subparagraph i of paragraph a of section 42, be required to be included in computing an individual’s income for a taxation year because of the application of Chapters I and II of Title II in respect of food or beverages consumed by the individual or by a person with whom the individual does not deal at arm’s length,

iii.  is paid or payable in respect of the individual’s duties performed at a site in Canada at which the person carries on a construction activity or at a construction work camp referred to in subparagraph iv in respect of the site, and

iv.  is paid or payable for food or beverages provided at a construction work camp, at which the individual is lodged, that was constructed or installed at or near the site to provide board and lodging to employees while they are engaged in construction services at the site;

(e)  is in respect of one of six or fewer special events held in a calendar year at which the food, beverages or entertainment is generally available to all individuals employed by the person at a particular place of business of the person and then consumed or enjoyed by those individuals at that time;

(f)  is an amount that is the cost of a subscription to cultural events that are

i.  concerts of a symphony orchestra or a classical music or jazz ensemble,

ii.  operas,

ii.1.  vocal performances, other than such performances held in venues normally used for sports events,

ii.2.  performing arts variety shows,

ii.3.  museum exhibits,

iii.  dance performances, or

iv.  theatre performances,

v.  (subparagraph repealed);

(g)  is an amount that is the cost of all or substantially all the tickets for a performance in an event referred to in any of subparagraphs i to iv of subparagraph f.

For the purpose of determining whether the conditions set out in any of subparagraphs d to d.2 of the first paragraph are met in respect of an amount referred to in section 42, paragraph g of section 39 shall not be taken into account.

For the purposes of subparagraph f of the first paragraph and this paragraph,

“cultural events presenter” means

(a)  a person or an organization whose mission is to present the arts, history or science and that is responsible for programming professional performances or museum exhibits generating box office or subscription income;

(b)  a person or an organization acting on behalf of a person or organization described in paragraph a; or

(c)  a manager or lessee of a venue for cultural events;

“subscription” means an agreement between a cultural events presenter and a client under which the client acquires a package put together by the cultural events presenter and consisting of a determined number of tickets for a minimum of three different presentations of events referred to in subparagraphs i to iv of that subparagraph f that are held in Québec.

For the purposes of subparagraphs f and g of the first paragraph, the cost of a subscription or ticket, as the case may be, does not include an amount paid or payable in respect of meals or beverages consumed by a person.

1990, c. 59, s. 168; 1993, c. 16, s. 175; 1995, c. 1, s. 41; 1995, c. 49, s. 236; 1996, c. 39, s. 124; 1997, c. 14, s. 74; 1997, c. 85, s. 68; 2000, c. 39, s. 24; 2001, c. 53, s. 67; 2003, c. 9, s. 28; 2004, c. 8, s. 90; 2005, c. 38, s. 78; 2009, c. 5, s. 139; 2010, c. 25, s. 30; 2015, c. 24, s. 75.

2010-10-27

421.2. Section 421.1 does not apply to an amount paid or payable by a person in respect of the consumption of food or beverages or in respect of entertainment enjoyed by a person, where the amount

(a)  is paid or payable for food, beverages or entertainment provided for, or in the expectation of, compensation in the ordinary course of a business carried on by that person of providing the food, beverages or entertainment for compensation;

(b)  relates to a fund-raising event the primary purpose of which is to benefit a registered charity;

(c)  is an amount for which the person is compensated and the amount of the compensation is reasonable and specifically identified in writing to the person paying the compensation;

(d)  is an amount that is required to be included in computing any individual’s income because of the application of Chapters I and II of Title II in respect of food or beverages consumed or entertainment enjoyed by the individual or a person with whom the individual does not deal at arm’s length, or would be so required but for section 37.1.5 or subparagraph ii of paragraph a of section 42;

(d.1)  is an amount that

i.  is not paid or payable in respect of a conference, convention, seminar or similar event,

ii.  would, but for subparagraph i of paragraph a of section 42, be required to be included in computing any individual’s income for a taxation year because of the application of Chapters I and II of Title II in respect of food or beverages consumed or entertainment enjoyed by the individual or a person with whom the individual does not deal at arm’s length, and

iii.  is paid or payable in respect of the individual’s duties performed at a work site in Canada that is

(1)  outside any urban area, as defined by the last Census Dictionary published by Statistics Canada before the year, that has a population of at least 40,000 individuals as determined in the last census published by Statistics Canada before the year, and

(2)  at least 30 km from the nearest point on the boundary of the nearest such urban area referred to in subparagraph 1;

(d.2)  is an amount that

i.  is not paid or payable in respect of entertainment or of a conference, convention, seminar or similar event,

ii.  would, but for subparagraph i of paragraph a of section 42, be required to be included in computing an individual’s income for a taxation year because of the application of Chapters I and II of Title II in respect of food or beverages consumed by the individual or by a person with whom the individual does not deal at arm’s length,

iii.  is paid or payable in respect of the individual’s duties performed at a site in Canada at which the person carries on a construction activity or at a construction work camp referred to in subparagraph iv in respect of the site, and

iv.  is paid or payable for food or beverages provided at a construction work camp, at which the individual is lodged, that was constructed or installed at or near the site to provide board and lodging to employees while they are engaged in construction services at the site;

(e)  is in respect of one of six or fewer special events held in a calendar year at which the food, beverages or entertainment is generally available to all individuals employed by the person at a particular place of business of the person and then consumed or enjoyed by those individuals at that time;

(f)  is an amount that is the cost of a subscription to cultural events that are

i.  concerts of a symphony orchestra or a classical music or jazz ensemble,

ii.  operas,

ii.1.  vocal performances, other than such performances held in venues normally used for sports events,

ii.2.  performing arts variety shows,

ii.3.  museum exhibits,

iii.  dance performances, or

iv.  theatre performances,

v.  (subparagraph repealed);

(g)  is an amount that is the cost of all or substantially all the tickets for a performance in an event referred to in any of subparagraphs i to iv of subparagraph f.

For the purpose of determining whether the conditions set out in any of subparagraphs d to d.2 of the first paragraph are met in respect of an amount referred to in section 42, paragraph g of section 39 shall not be taken into account.

For the purposes of subparagraph f of the first paragraph and this paragraph,

“cultural events presenter” means

(a)  a person or an organization whose mission is to present the arts, history or science and that is responsible for programming professional performances or museum exhibits generating box office or subscription income;

(b)  a person or an organization acting on behalf of a person or organization described in paragraph a; or

(c)  a manager or lessee of a venue for cultural events;

“subscription” means an agreement between a cultural events presenter and a client under which the client acquires a package put together by the cultural events presenter and consisting of a determined number of tickets for a minimum of three different presentations of events referred to in subparagraphs i to iv of that subparagraph f that are held in Québec.

For the purposes of subparagraphs f and g of the first paragraph, the cost of a subscription or ticket, as the case may be, does not include an amount paid or payable in respect of meals or beverages consumed by a person.

1990, c. 59, s. 168; 1993, c. 16, s. 175; 1995, c. 1, s. 41; 1995, c. 49, s. 236; 1996, c. 39, s. 124; 1997, c. 14, s. 74; 1997, c. 85, s. 68; 2000, c. 39, s. 24; 2001, c. 53, s. 67; 2003, c. 9, s. 28; 2004, c. 8, s. 90; 2005, c. 38, s. 78; 2009, c. 5, s. 139; 2010, c. 25, s. 30.

2009-05-15

421.2. Section 421.1 does not apply to an amount paid or payable by a person in respect of the consumption of food or beverages or in respect of entertainment enjoyed by a person, where the amount

(a)  is paid or payable for food, beverages or entertainment provided for, or in the expectation of, compensation in the ordinary course of a business carried on by that person of providing the food, beverages or entertainment for compensation;

(b)  relates to a fund-raising event the primary purpose of which is to benefit a registered charity;

(c)  is an amount for which the person is compensated and the amount of the compensation is reasonable and specifically identified in writing to the person paying the compensation;

(d)  is an amount that is required to be included in computing any individual’s income because of the application of Chapters I and II of Title II of Book III in respect of food or beverages consumed or entertainment enjoyed by the individual or a person with whom the individual does not deal at arm’s length, or would be so required but for section 37.1.5 or subparagraph ii of paragraph a of section 42;

(d.1)  is an amount that

i.  is not paid or payable in respect of a conference, convention, seminar or similar event,

ii.  would, but for subparagraph i of paragraph a of section 42, be required to be included in computing any individual’s income for a taxation year because of the application of Chapters I and II of Title II of Book III in respect of food or beverages consumed or entertainment enjoyed by the individual or a person with whom the individual does not deal at arm’s length, and

iii.  is paid or payable in respect of the individual’s duties performed at a work site in Canada that is

(1)  outside any urban area, as defined by the last Census Dictionary published by Statistics Canada before the year, that has a population of at least 40,000 individuals as determined in the last census published by Statistics Canada before the year, and

(2)  at least 30 km from the nearest point on the boundary of the nearest such urban area referred to in subparagraph 1;

(d.2)  is an amount that

i.  is not paid or payable in respect of entertainment or of a conference, convention, seminar or similar event,

ii.  would, but for subparagraph i of paragraph a of section 42, be required to be included in computing an individual’s income for a taxation year because of the application of Chapters I and II of Title II of Book III in respect of food or beverages consumed by the individual or by a person with whom the individual does not deal at arm’s length,

iii.  is paid or payable in respect of the individual’s duties performed at a site in Canada at which the person carries on a construction activity or at a construction work camp referred to in subparagraph iv in respect of the site, and

iv.  is paid or payable for food or beverages provided at a construction work camp, at which the individual is lodged, that was constructed or installed at or near the site to provide board and lodging to employees while they are engaged in construction services at the site;

(e)  is in respect of one of six or fewer special events held in a calendar year at which the food, beverages or entertainment is generally available to all individuals employed by the person at a particular place of business of the person and then consumed or enjoyed by those individuals at that time;

(f)  is an amount that is the cost of a subscription to cultural events that are

i.  concerts of a symphony orchestra or a classical music or jazz ensemble,

ii.  operas,

ii.1.  vocal performances, other than such performances held in venues normally used for sports events,

ii.2.  performing arts variety shows,

ii.3.  museum exhibits,

iii.  dance performances, or

iv.  theatre performances,

v.  (subparagraph repealed);

(g)  is an amount that is the cost of all or substantially all the tickets for a performance in an event referred to in any of subparagraphs i to iv of subparagraph f.

For the purpose of determining whether the conditions set out in any of subparagraphs d to d.2 of the first paragraph are met in respect of an amount referred to in section 42, paragraph g of section 39 shall not be taken into account.

For the purposes of subparagraph f of the first paragraph and this paragraph,

“cultural events presenter” means

(a)  a person or an organization whose mission is to present the arts, history or science and that is responsible for programming professional performances or museum exhibits generating box office or subscription income;

(b)  a person or an organization acting on behalf of a person or organization described in paragraph a; or

(c)  a manager or lessee of a venue for cultural events;

“subscription” means an agreement between a cultural events presenter and a client under which the client acquires a package put together by the cultural events presenter and consisting of a determined number of tickets for a minimum of three different presentations of events referred to in subparagraphs i to iv of that subparagraph f that are held in Québec.

For the purposes of subparagraphs f and g of the first paragraph, the cost of a subscription or ticket, as the case may be, does not include an amount paid or payable in respect of meals or beverages consumed by a person.

1990, c. 59, s. 168; 1993, c. 16, s. 175; 1995, c. 1, s. 41; 1995, c. 49, s. 236; 1996, c. 39, s. 124; 1997, c. 14, s. 74; 1997, c. 85, s. 68; 2000, c. 39, s. 24; 2001, c. 53, s. 67; 2003, c. 9, s. 28; 2004, c. 8, s. 90; 2005, c. 38, s. 78; 2009, c. 5, s. 139.

2006-03-01

421.2. Section 421.1 does not apply to an amount paid or payable by a person in respect of the consumption of food or beverages or in respect of entertainment enjoyed by a person, where the amount

(a)  is paid or payable for food, beverages or entertainment provided for, or in the expectation of, compensation in the ordinary course of a business carried on by that person of providing the food, beverages or entertainment for compensation;

(b)  relates to a fund-raising event the primary purpose of which is to benefit a registered charity;

(c)  is an amount for which the person is compensated and the amount of the compensation is reasonable and specifically identified in writing to the person paying the compensation;

(d)  is an amount that is required to be included in computing any individual’s income because of the application of Chapters I and II of Title II of Book III in respect of food or beverages consumed or entertainment enjoyed by the individual or a person with whom the individual does not deal at arm’s length, or would be so required but for section 37.1.5 or subparagraph ii of paragraph a of section 42;

(d.1)  is an amount that

i.  is not paid or payable in respect of a conference, convention, seminar or similar event,

ii.  would, but for subparagraph i of paragraph a of section 42, be required to be included in computing any individual’s income for a taxation year because of the application of Chapters I and II of Title II of Book III in respect of food or beverages consumed or entertainment enjoyed by the individual or a person with whom the individual does not deal at arm’s length, and

iii.  is paid or payable in respect of the individual’s duties performed at a work site in Canada that is

(1)  outside any urban area, as defined by the last Census Dictionary published by Statistics Canada before the year, that has a population of at least 40,000 individuals as determined in the last census published by Statistics Canada before the year, and

(2)  at least 30 kilometres from the nearest point on the boundary of the nearest such urban area referred to in subparagraph 1;

(d.2)  is an amount that

i.  is not paid or payable in respect of entertainment or of a conference, convention, seminar or similar event,

ii.  would, but for subparagraph i of paragraph a of section 42, be required to be included in computing an individual’s income for a taxation year because of the application of Chapters I and II of Title II of Book III in respect of food or beverages consumed by the individual or by a person with whom the individual does not deal at arm’s length,

iii.  is paid or payable in respect of the individual’s duties performed at a site in Canada at which the person carries on a construction activity or at a construction work camp referred to in subparagraph iv in respect of the site, and

iv.  is paid or payable for food or beverages provided at a construction work camp, at which the individual is lodged, that was constructed or installed at or near the site to provide board and lodging to employees while they are engaged in construction services at the site;

(e)  is in respect of one of six or fewer special events held in a calendar year at which the food, beverages or entertainment is generally available to all individuals employed by the person at a particular place of business of the person and then consumed or enjoyed by those individuals at that time;

(f)  is an amount that is the cost of a subscription to cultural events that are

i.  concerts of a symphony orchestra or a classical music or jazz ensemble,

ii.  operas,

ii.1.  vocal performances, other than such performances held in venues normally used for sports events,

ii.2.  performing arts variety shows,

ii.3.  museum exhibits,

iii.  dance performances, or

iv.  theatre performances,

v.  (subparagraph repealed);

(g)  is an amount that is the cost of all or substantially all the tickets for a performance in an event referred to in any of subparagraphs i to iv of subparagraph f.

For the purpose of determining whether the conditions set out in any of subparagraphs d to d.2 of the first paragraph are met in respect of an amount referred to in section 42, paragraph g of section 39 shall not be taken into account.

For the purposes of subparagraph f of the first paragraph and this paragraph,

“performing arts presenter” means a person or an organization whose mission is to present the performing arts and who is responsible for programming professional performances generating box office or subscription income, or a manager or lessee of a venue for cultural events;

“subscription” means an agreement between a performing arts presenter and a client under which the client acquires a package put together by the performing arts presenter and consisting of a determined number of tickets for a minimum of three different presentations of events referred to in subparagraphs i to iv of that subparagraph f that are held in Québec.

For the purposes of subparagraphs f and g of the first paragraph, the cost of a subscription or ticket, as the case may be, does not include an amount paid or payable in respect of meals or beverages consumed by a person.

1990, c. 59, s. 168; 1993, c. 16, s. 175; 1995, c. 1, s. 41; 1995, c. 49, s. 236; 1996, c. 39, s. 124; 1997, c. 14, s. 74; 1997, c. 85, s. 68; 2000, c. 39, s. 24; 2001, c. 53, s. 67; 2003, c. 9, s. 28; 2004, c. 8, s. 90; 2005, c. 38, s. 78.