A-6.002, r. 1 - Regulation respecting fiscal administration

Section 96r4 Disposition versions

2012-09-01

96R4. The tax payable under Part I of the Taxation Act (chapter I-3) by an individual contemplated in section 26 of that Act shall be computed, subject to section 96R5, as if:

(a)  section 1089 of the Taxation Act did not contain paragraphs d, f and i;

(b)  the amount that this individual was required to include in computing his income earned in Québec under paragraph g of section 1089 of the Taxation Act were equal to the aggregate of:

i.  the remuneration received by him in the year in respect of an office or employment and that was paid to him directly or indirectly by the Gouvernement du Québec or any corporation, commission, association, educational institution or institution contemplated in paragraph b, c or d of section 96R2, except to the extent that such remuneration was attributable to the duties performed by him in a foreign country and was either subject to an income or profits tax by a foreign country, or paid in connection with the selling of property, the negotiating of contracts or the rendering of services for his employer, or a foreign affiliate of his employer, or any other person with whom his employer does not deal at arm’s length, in the ordinary course of a business carried on by his employer, that foreign affiliate or that person; and

ii.  amounts that would be required by paragraphs g and h of section 312 of the Taxation Act to be included in computing his income for the year if he had resided in Québec throughout the year and if these paragraphs had applied only to amounts paid by the Gouvernement du Québec or a corporation, commission, association, educational institution or institution contemplated in paragraph b, c or d of section 96R2; minus

iii.  any amount that would be deductible in computing his income for the year by virtue of sections 347 to 350 of the Taxation Act if these sections were applicable only in computing the income of persons contemplated in the second paragraph of section 347 of the Taxation Act and if the amounts described in paragraph c of subsection 3 of section 348 of the Taxation Act were those described in subparagraph ii;

(c)  paragraph c of section 1089 of the Taxation Act were replaced by the following:

“(c)  that part, determined in accordance with paragraphs c.1 to c.3 of his taxable capital gains contemplated in paragraph c of section 1090, from dispositions of taxable Canadian property each of which was:

i.  an immovable situated in Québec or an interest in such property or an option in respect thereof; or

ii.  any other capital property used in carrying on a business in Canada;

“(c.1)  the taxable capital gain of an individual contemplated in section 26 from the disposition of an immovable situated in Québec, an interest in such property or an option in respect thereof, must be included in whole in computing his income earned in Québec;

“(c.2)  that part of the taxable capital gain from the disposition of any other capital property used in carrying on a business in Canada by an individual contemplated in section 26 that must be included in computing his income earned in Québec, for the year of the disposition, is that part of such gain that his income for the year from carrying on that business in Canada and attributable in the prescribed manner to an establishment in Québec is of his income for the year from carrying on that business in Canada and attributable in the prescribed manner to all his establishments in Canada;

“(c.3)  where the individual contemplated in section 26 has no income from carrying on that business in Canada and attributable in the prescribed manner to an establishment in Canada, for the year in which he disposes of any other capital property used in carrying on that business in Canada, that part of the taxable capital gain from the disposition of such property that must be included in computing his income earned in Québec, for the said year, is that part of such gain that his income from carrying on that business in Canada and attributable to an establishment in Québec, computed in accordance with this Title, for the last preceding year in which he had income from carrying on that business in Canada and attributable in the prescribed manner to an establishment in Canada is of his income, for the said preceding year, from carrying on that business in Canada and attributable in the prescribed manner to all his establishments in Canada.”.

R.R.Q., 1981, c. M-31, r. 1, s. 96R4; O.C. 472-95, s. 2; O.C. 1282-2003, s. 45; O.C. 134-2009, s. 50.