I-3 - Taxation Act

Section 737.18.6 Disposition versions

2012-05-09

737.18.6. In this Title,

“base period” applicable to a corporation or partnership in respect of eligible activities of a recognized business carried on by the corporation in a taxation year, or by the partnership in a fiscal period, means

(a)  where the certificate issued to the corporation or partnership in respect of the recognized business became effective or is deemed to have become effective, in accordance with section 737.18.9.1, before 1 January 2001, the period beginning on the day after the effective date of the certificate and, subject to subparagraph ii of subparagraph a of the first paragraph of section 737.18.9.2 and subparagraph b of that paragraph, ending on the earlier of

i.  the day preceding the day when the corporation or partnership ceases to carry on the eligible activities, and

ii.  31 December 2010;

(b)  where the certificate issued to the corporation or partnership in respect of the recognized business became effective or is deemed to have become effective, in accordance with section 737.18.9.1, after 31 December 2000 and before 1 January 2004, the period beginning on the day after the effective date of the certificate and, subject to subparagraph ii of subparagraph a of the first paragraph of section 737.18.9.2 and subparagraph b of that paragraph, ending on the earlier of

i.  the day preceding the day when the corporation or partnership ceases to carry on the eligible activities, and

ii.  the day of the tenth anniversary of the effective date of the certificate; and

(c)  where the certificate issued to the corporation or partnership in respect of the recognized business became effective or is deemed to have become effective, in accordance with section 737.18.9.1, after 31 December 2003, the period beginning on the day after the effective date of the certificate and, subject to subparagraph ii of subparagraph a of the first paragraph of section 737.18.9.2 and subparagraph b of that paragraph, ending on the earlier of

i.  the day preceding the day when the corporation or partnership ceases to carry on the eligible activities, and

ii.  31 December 2013;

“eligible activities” of a recognized business carried on by a corporation in a taxation year, or by a partnership in a fiscal period, means the activities shown on the certificate issued to the corporation or partnership in respect of the recognized business and carried on in the international trade zone by the corporation in the year or by the partnership in the fiscal period;

“eligible employer” means a corporation or a partnership that carries on a recognized business;

“exemption period” of an individual who is a foreign specialist for all or part of a taxation year, in relation to an employment the individual holds with an eligible employer, means the period that, subject to the second paragraph, begins on the later of the day on which the individual begins to perform the duties of that employment and 10 March 1999, and that, subject to subparagraph i of subparagraph a of the first paragraph of section 737.18.9.2, ends on the earlier of

(a)  the day preceding the day on which the individual ceases to be a foreign specialist; and

(b)  the day on which that period totals five years, with reference to

i.  where the individual began to stay or became resident in Canada after 19 December 2002 by reason of an employment contract entered into after that date, the aggregate of all periods each of which is a preceding period within the meaning of section 737.18.6.2 that is established in respect of the individual, and

ii.  in any other case, the aggregate of all preceding periods each of which is

(1)  all or part of a preceding period, established in respect of the individual under this definition, to which an amount that the individual may deduct in computing the individual’s taxable income for a taxation year, under section 737.18.10, in relation to a preceding employment, may reasonably be attributed, or

(2)  a preceding period within the meaning of section 737.18.6.2 that is established in respect of the individual since the last time the individual became resident in Canada, other than a period described in subparagraph 1;

“foreign specialist” for all or part of a taxation year, means an individual in respect of whom the following conditions are met:

(a)  at a particular time after 9 March 1999 but before 2 September 2003, the individual takes up employment, as an employee, with an eligible employer under an employment contract that they entered into before 13 June 2003;

(b)  the individual is not resident in Canada immediately before taking up employment, as an employee, with the eligible employer;

(c)  from the particular time to the end of the year or the part of the year

i.  the individual performs employment duties for the eligible employer exclusively or almost exclusively in the international trade zone,

ii.  the individual works exclusively or almost exclusively for the eligible employer, and

iii.  the individual’s duties for the eligible employer consist exclusively or almost exclusively in carrying out work relating to activities shown on the certificate issued to the employer in respect of the recognized business carried on by the employer in the international trade zone; and

(d)  the eligible employer has obtained in respect of the individual, for the purposes of this Title, a certificate issued by Investissement Québec for the taxation year and the certificate and, if applicable, all the similar certificates that were obtained in respect of the individual for preceding taxation years certify that, from the particular time to the end of the year or the part of the year, the individual is recognized as a specialist;

“international trade zone” has the meaning assigned by the first paragraph of section 1029.8.36.0.38;

“recognized business” has the meaning assigned by the first paragraph of section 1029.8.36.0.38 and by section 1029.8.36.0.38.1.

Where the certificate referred to in the definition of “foreign specialist” was not issued in respect of an individual for the taxation year that includes the particular day that is the later of the day on which the individual began to perform the duties of an employment the individual holds with an eligible employer and 10 March 1999, the exemption period of the individual in relation to that employment begins only on the first day of the first taxation year following the particular day for which such a certificate has been issued in respect of the individual.

Where an individual holds employment with an eligible employer on 10 March 1999 under a particular contract, but took up employment, as an employee, with that employer before that date, and the particular contract is not deemed to end under the first or second paragraph of section 737.18.7.2, the definition of “foreign specialist” in the first paragraph shall be read

(a)  with paragraphs a and b replaced by the following paragraphs:

“(a) on 10 March 1999, the individual holds employment with an eligible employer under an employment contract that they entered into before that date;

“(b) the individual is not resident in Canada immediately before 10 March 1999;”;

(b)  with “from the particular time” in the portion of paragraph c before subparagraph i and in paragraph d replaced by “from 10 March 1999”.

2000, c. 39, s. 49; 2001, c. 51, s. 41; 2003, c. 9, s. 54; 2004, c. 21, s. 137; 2005, c. 23, s. 79; 2012, c. 8, s. 73.

2006-03-01

737.18.6. In this Title,

“base period” applicable to a corporation or partnership in respect of eligible activities of a recognized business carried on by the corporation in a taxation year, or by the partnership in a fiscal period, means

(a)  where the certificate issued to the corporation or partnership in respect of the recognized business became effective or is deemed to have become effective, in accordance with section 737.18.9.1, before 1 January 2001, the period beginning on the day after the effective date of the certificate and, subject to subparagraph ii of subparagraph a of the first paragraph of section 737.18.9.2 and subparagraph b of that paragraph, ending on the earlier of

i.  the day preceding the day when the corporation or partnership ceases to carry on the eligible activities, and

ii.  31 December 2010;

(b)  where the certificate issued to the corporation or partnership in respect of the recognized business became effective or is deemed to have become effective, in accordance with section 737.18.9.1, after 31 December 2000 and before 1 January 2004, the period beginning on the day after the effective date of the certificate and, subject to subparagraph ii of subparagraph a of the first paragraph of section 737.18.9.2 and subparagraph b of that paragraph, ending on the earlier of

i.  the day preceding the day when the corporation or partnership ceases to carry on the eligible activities, and

ii.  the day of the tenth anniversary of the effective date of the certificate; and

(c)  where the certificate issued to the corporation or partnership in respect of the recognized business became effective or is deemed to have become effective, in accordance with section 737.18.9.1, after 31 December 2003, the period beginning on the day after the effective date of the certificate and, subject to subparagraph ii of subparagraph a of the first paragraph of section 737.18.9.2 and subparagraph b of that paragraph, ending on the earlier of

i.  the day preceding the day when the corporation or partnership ceases to carry on the eligible activities, and

ii.  31 December 2013;

“eligible activities” of a recognized business carried on by a corporation in a taxation year, or by a partnership in a fiscal period, means the activities shown on the certificate issued to the corporation or partnership in respect of the recognized business and carried on in the international trade zone by the corporation in the year or by the partnership in the fiscal period;

“eligible employer” means a corporation or a partnership that carries on a recognized business;

“exemption period” of an individual who is a foreign specialist for all or part of a taxation year, in relation to an employment the individual holds with an eligible employer, means the period that, subject to the second paragraph, begins on the later of the day on which the individual begins to perform the duties of that employment and 10 March 1999, and that, subject to subparagraph i of subparagraph a of the first paragraph of section 737.18.9.2, ends on the earlier of

(a)  the day preceding the day on which the individual ceases to be a foreign specialist; and

(b)  the day on which that period totals five years, with reference to

i.  where the individual began to stay or became resident in Canada after 19 December 2002 by reason of an employment contract entered into after that date, the aggregate of all periods each of which is a preceding period within the meaning of section 737.18.6.2 that is established in respect of the individual, and

ii.  in any other case, the aggregate of all preceding periods each of which is

(1)  all or part of a preceding period, established in respect of the individual under this definition, to which an amount that the individual may deduct in computing the individual’s taxable income for a taxation year, under section 737.18.10, in relation to a preceding employment, may reasonably be attributed, or

(2)  a preceding period within the meaning of section 737.18.6.2 that is established in respect of the individual since the last time the individual became resident in Canada, other than a period described in subparagraph 1;

“foreign specialist” for all or part of a taxation year, means an individual in respect of whom the following conditions are met:

(a)  at a particular time after 9 March 1999 but before 2 September 2003, the individual takes up employment, as an employee, with an eligible employer under an employment contract that they entered into before 13 June 2003;

(b)  the individual is not resident in Canada immediately before taking up employment, as an employee, with the eligible employer;

(c)  from the particular time to the end of the year or the part of the year

i.  the individual performs employment duties for the eligible employer exclusively or almost exclusively in the international trade zone,

ii.  the individual works exclusively or almost exclusively for the eligible employer, and

iii.  the individual’s duties for the eligible employer consist exclusively or almost exclusively in carrying out work relating to activities shown on the certificate issued to the employer in respect of the recognized business carried on by the employer in the international trade zone; and

(d)  the eligible employer obtained in respect of the individual a certificate issued, for the taxation year, by Investissement Québec, after having applied therefor in writing before 1 March of the following calendar year, and the certificate, that has not been revoked in respect of the year or the part of the year, and, where applicable, all the unrevoked certificates that were obtained in respect of the individual for preceding taxation years, certify that, from the particular time to the end of the year or the part of the year, the individual is employed by the individual’s employer, in the carrying on of the recognized business by the employer, as an administrator or professional whose expertise is widely recognized in the individual’s community;

“international trade zone” has the meaning assigned by the first paragraph of section 1029.8.36.0.38;

“recognized business” has the meaning assigned by the first paragraph of section 1029.8.36.0.38 and by section 1029.8.36.0.38.1.

Where the certificate referred to in the definition of “foreign specialist” was not issued in respect of an individual for the taxation year that includes the particular day that is the later of the day on which the individual began to perform the duties of an employment the individual holds with an eligible employer and 10 March 1999, the exemption period of the individual in relation to that employment begins only on the first day of the first taxation year following the particular day for which such a certificate has been issued in respect of the individual.

Where an individual holds employment with an eligible employer on 10 March 1999 under a particular contract, but took up employment, as an employee, with that employer before that date, and the particular contract is not deemed to end under the first or second paragraph of section 737.18.7.2, the definition of “foreign specialist” in the first paragraph shall be read

(a)  with paragraphs a and b replaced by the following paragraphs:

“(a) on 10 March 1999, the individual holds employment with an eligible employer under an employment contract that they entered into before that date;

“(b) the individual is not resident in Canada immediately before 10 March 1999;”;

(b)  with “from the particular time” in the portion of paragraph c before subparagraph i and in paragraph d replaced by “from 10 March 1999”.

2000, c. 39, s. 49; 2001, c. 51, s. 41; 2003, c. 9, s. 54; 2004, c. 21, s. 137; 2005, c. 23, s. 79.