C-8.3 - Act respecting international financial centres

Section 63 Disposition versions

2022-06-08

63. No amount is to be deducted or withheld under section 1015 of the Taxation Act (chapter I-3) in respect of the part of the remuneration referred to in the second paragraph, for a period or part of a period of a taxation year, of an employee of a corporation operating an international financial centre, from the employee’s employment with the corporation, where the following conditions are satisfied:

(1)  a qualification certificate referred to in section 3.3 of Schedule E to the Act respecting the sectoral parameters of certain fiscal measures (chapter P-5.1) was issued in respect of the employee in relation to that employment and is valid for that period or part of the period; and

(2)  (subparagraph repealed);

(3)  it may reasonably be considered that the conditions relating to that employment on which was based the decision of the Minister of Finance to issue the qualification certificate referred to in subparagraph 1 or, if they are not the same, the conditions on which would have been based the decision of the Minister of Finance to issue the qualification certificate in relation to the period or part of the period, remain essentially the same for the period or part of the period.

The part of the remuneration to which the first paragraph refers, in respect of the employment of the employee referred to in the first paragraph, is the product obtained by multiplying the employee’s remuneration for the period or the part of the period concerned by the percentage determined in subparagraph 1 of the second paragraph of section 65 in respect of that employment.

For the purposes of the second paragraph, for the purpose of determining the percentage applicable in respect of an employment, the employment referred to in that paragraph held by the employee under a particular employment contract is deemed, where the second paragraph of section 69.3 applies to the employee, to be an employment held by the employee under a deemed employment contract, within the meaning of subparagraph 1 of that second paragraph, continuing the particular contract.

1999, c. 86, s. 63; 2004, c. 21, s. 19; 2005, c. 23, s. 12; 2011, c. 1, s. 6; 2012, c. 1, s. 53; 2022, c. 23, s. 15.

2012-03-05

63. No amount shall be deducted or withheld under section 1015 of the Taxation Act (chapter I-3) in respect of the part of the remuneration referred to in the second paragraph, for a period or part of a period of a taxation year, of an employee of a corporation or partnership operating an international financial centre, from the employee’s employment with the corporation or partnership, where the following conditions are satisfied:

(1)  except where section 104 applies for the period or part of the period in respect of the employee in relation to that employment, a qualification certificate referred to in section 14, as it read before being repealed, section 15 or section 3.3 of Schedule E to the Act respecting the sectoral parameters of certain fiscal measures (chapter P-5.1) was issued in respect of the employee in relation to that employment and is valid for that period or part of the period;

(2)  where section 104 applies for the period or part of the period in respect of the employee in relation to that employment, a certificate referred to in section 20 was issued for the preceding taxation year in respect of the employee in relation to that employment and has not been revoked; and

(3)  it may reasonably be considered that the conditions relating to that employment on which was based the decision of the Minister of Finance to issue the qualification certificate referred to in paragraph 1 or the certificate referred to in paragraph 2, or, if they are not the same, the conditions on which would have been based the decision of the Minister of Finance to issue the qualification certificate or the certificate in relation to the period or part of the period, remain essentially the same for the period or part of the period.

The part of the remuneration to which the first paragraph refers is

(1)  in the case of an employee in respect of whom subparagraph 1 of the first paragraph applies by reason of a qualification certificate issued in respect of the employee in accordance with section 15 in relation to that employment or in respect of whom subparagraph 2 of that paragraph applies, the lesser of

(a)  the percentage, specified in the fourth paragraph, of the part of the employee’s wages, within the meaning of section 72, from that employment for the period or part of the period concerned, and

(b)  the product obtained by multiplying the amount specified in the fifth paragraph by the proportion that the number of days in the period or part of the period concerned is of 365; or

(2)  in the case of another employee, the product obtained by multiplying the employee’s remuneration for the period or the part of the period concerned by the percentage determined in subparagraph 1 of the second paragraph of section 65 in respect of that employment.

For the purposes of subparagraph 2 of the second paragraph, for the purpose of determining the percentage applicable in respect of an employment, the employment referred to in that subparagraph held by the employee under a particular employment contract, is deemed, where the third paragraph of section 69.3 applies to the employee, to be an employment held by the employee under a deemed employment contract, within the meaning of subparagraph 1 of that third paragraph, continuing the particular contract.

The percentage to which subparagraph a of subparagraph 1 of the second paragraph refers is

(1)  37.5% for the taxation year 2010;

(2)  30% for the taxation year 2011;

(3)  20% for the taxation year 2012; or

(4)  10% for the taxation year 2013.

The amount to which subparagraph b of subparagraph 1 of the second paragraph refers is

(1)  $50,000 for the taxation year 2010;

(2)  $40,000 for the taxation year 2011;

(3)  $26,667 for the taxation year 2012; or

(4)  $13,333 for the taxation year 2013.

1999, c. 86, s. 63; 2004, c. 21, s. 19; 2005, c. 23, s. 12; 2011, c. 1, s. 6; 2012, c. 1, s. 53.

2011-02-17

63. No amount shall be deducted or withheld under section 1015 of the Taxation Act (chapter I-3) in respect of the part of the remuneration referred to in the second paragraph, for a period or part of a period of a taxation year, of an employee of a corporation or partnership operating an international financial centre, from the employee’s employment with the corporation or partnership, where the following conditions are satisfied:

(1)  except where section 104 applies for the period or part of the period in respect of the employee in relation to that employment, a qualification certificate had been issued pursuant to section 14 or 15 in respect of the employee in relation to that employment and is valid for that period or part of the period;

(2)  where section 104 applies for the period or part of the period in respect of the employee in relation to that employment, a certificate had been issued for the preceding taxation year in accordance with section 19 or 20 in respect of the employee in relation to that employment and is valid; and

(3)  it may reasonably be considered that the conditions relating to that employment on which was based the decision of the Minister of Finance to issue the qualification certificate referred to in paragraph 1 or the certificate referred to in paragraph 2, or, if they are not the same, the conditions on which would have been based the decision of the Minister of Finance to issue the qualification certificate or the certificate in relation to the period or part of the period, remain essentially the same for the period or part of the period.

The part of the remuneration to which the first paragraph refers is

(1)  in the case of an employee in respect of whom subparagraph 1 of the first paragraph applies by reason of a qualification certificate issued in respect of the employee in accordance with section 15 in relation to that employment, or in respect of whom subparagraph 2 of the first paragraph applies by reason of a certificate issued in respect of the employee in accordance with section 20 in relation to that employment, the lesser of

(a)  the percentage, specified in the fourth paragraph, of the part of the employee’s wages, within the meaning of section 72, from that employment for the period or part of the period concerned, and

(b)  the product obtained by multiplying the amount specified in the fifth paragraph by the proportion that the number of days in the period or part of the period concerned is of 365; or

(2)  in the case of another employee, the product obtained by multiplying the employee’s remuneration for the period or the part of the period concerned by the percentage determined in subparagraph 1 of the second paragraph of section 65 in respect of that employment.

For the purposes of subparagraph 2 of the second paragraph, for the purpose of determining the percentage applicable in respect of an employment, the employment referred to in that subparagraph held by the employee under a particular employment contract, is deemed, where the third paragraph of section 69.3 applies to the employee, to be an employment held by the employee under a deemed employment contract, within the meaning of subparagraph 1 of that third paragraph, continuing the particular contract.

The percentage to which subparagraph a of subparagraph 1 of the second paragraph refers is

(1)  37.5% for the taxation year 2010;

(2)  30% for the taxation year 2011;

(3)  20% for the taxation year 2012; or

(4)  10% for the taxation year 2013.

The amount to which subparagraph b of subparagraph 1 of the second paragraph refers is

(1)  $50,000 for the taxation year 2010;

(2)  $40,000 for the taxation year 2011;

(3)  $26,667 for the taxation year 2012; or

(4)  $13,333 for the taxation year 2013.

1999, c. 86, s. 63; 2004, c. 21, s. 19; 2005, c. 23, s. 12; 2011, c. 1, s. 6.

2005-06-17

63. No amount shall be deducted or withheld under section 1015 of the Taxation Act (chapter I-3) in respect of the part of the remuneration referred to in the second paragraph, for a period or part of a period of a taxation year, of an employee of a corporation or partnership operating an international financial centre, from the employee’s employment with the corporation or partnership, where the following conditions are satisfied :

(1)  except where section 104 applies for the period or part of the period in respect of the employee in relation to that employment, a qualification certificate had been issued pursuant to section 14 or 15 in respect of the employee in relation to that employment and is valid for that period or part of the period ;

(2)  where section 104 applies for the period or part of the period in respect of the employee in relation to that employment, a certificate had been issued for the preceding taxation year in accordance with section 19 or 20 in respect of the employee in relation to that employment and is valid; and

(3)  it may reasonably be considered that the conditions relating to that employment on which was based the decision of the Minister of Finance to issue the qualification certificate referred to in paragraph 1 or the certificate referred to in paragraph 2, or, if they are not the same, the conditions on which would have been based the decision of the Minister of Finance to issue the qualification certificate or the certificate in relation to the period or part of the period, remain essentially the same for the period or part of the period.

The part of the remuneration to which the first paragraph refers is

(1)  in the case of an employee in respect of whom subparagraph 1 of the first paragraph applies by reason of a qualification certificate issued in respect of the employee in accordance with section 15 in relation to that employment, or in respect of whom subparagraph 2 of the first paragraph applies by reason of a certificate issued in respect of the employee in accordance with section 20 in relation to that employment, the total of

(a)  the lesser of

i.  37.5% of the part of the employee’s wages, within the meaning of section 72, from that employment for the period or part of the period concerned that may reasonably be attributed to a period after 30 March 2004, and

ii.  the amount obtained by multiplying $50,000 by the proportion that the number of days in the period or part of the period concerned is of 365.

(b)  37.5% of the part of the employee’s wages, within the meaning of section 72, from that employment for the period or part of the period concerned that may reasonably be attributed to a period after 12 June 2003 but before 31 March 2004, and

(c)  50% of the part of the employee’s wages, within the meaning of section 72, from that employment for the period or part of the period concerned that may reasonably be attributed to a period before 13 June 2003; or

(2)  in the case of another employee, the product obtained by multiplying the employee’s remuneration for the period or the part of the period concerned by the percentage determined in subparagraph 1 of the second paragraph of section 65 in respect of that employment.

For the purposes of subparagraph 2 of the second paragraph, for the purpose of determining the percentage applicable in respect of an employment, the employment referred to in that subparagraph held by the employee under a particular employment contract, is deemed, where the third paragraph of section 69.3 applies to the employee, to be an employment held by the employee under a deemed employment contract, within the meaning of subparagraph 1 of that third paragraph, continuing the particular contract

1999, c. 86, s. 63; 2004, c. 21, s. 19; 2005, c. 23, s. 12.

2004-11-03

63. No amount shall be deducted or withheld under section 1015 of the Taxation Act (chapter I-3) in respect of the part of the remuneration referred to in the second paragraph, for a period or part of a period of a taxation year, of an employee of a corporation or partnership operating an international financial centre, from the employee’s employment with the corporation or partnership, where the following conditions are satisfied :

(1)  except where section 104 applies for the period or part of the period in respect of the employee in relation to that employment, a qualification certificate had been issued pursuant to section 14 or 15 in respect of the employee in relation to that employment and is valid for that period or part of the period ;

(2)  where section 104 applies for that period or part of the period in respect of the employee in relation to that employment, a certificate had been issued for the preceding taxation year pursuant to any of sections 19 to 21 in respect of the employee in relation to that employment and is valid ; and

(3)  it may reasonably be considered that the conditions relating to that employment on which was based the decision of the Minister of Finance to issue the qualification certificate referred to in paragraph 1 or the certificate referred to in paragraph 2 remain essentially the same for the period or part of the period.

The part of the remuneration to which the first paragraph refers is

(1)  in the case of an employee in respect of whom subparagraph 1 of the first paragraph applies by reason of a qualification certificate issued in respect of the employee pursuant to section 15 in relation to that employment, or in respect of whom subparagraph 2 of the first paragraph applies by reason of a certificate issued in respect of the employee pursuant to section 20 or 21 in relation to that employment, 37.5 %, or 50 % for the part attributable to a period preceding 13 June 2003, of the employee’s wages, within the meaning of section 72, from that employment for the period or the part of the period concerned; or

(2)  in the case of another employee, the product obtained by multiplying the employee’s remuneration for the period or the part of the period concerned by the percentage determined in subparagraph 1 of the second paragraph of section 65 in respect of that employment.

For the purposes of subparagraph 2 of the second paragraph, for the purpose of determining the percentage applicable in respect of an employment, the employment referred to in that subparagraph held by the employee under a particular employment contract, is deemed, where the third paragraph of section 69.3 applies to the employee, to be an employment held by the employee under a deemed employment contract, within the meaning of subparagraph 1 of that third paragraph, continuing the particular contract

1999, c. 86, s. 63; 2004, c. 21, s. 19.

1999-12-20

63. No amount shall be deducted or withheld under section 1015 of the Taxation Act (chapter I‐3) in respect of the remuneration, for a period or part of a period of a taxation year, of an employee of a corporation or partnership operating an international financial centre, from the employee’s employment with the corporation or partnership, where the following conditions are satisfied :

(1)  except where section 104 applies for the period or part of the period in respect of the employee in relation to that employment, a qualification certificate had been issued pursuant to section 14 or 15 in respect of the employee in relation to that employment and is valid for that period or part of the period ;

(2)  where section 104 applies for that period or part of the period in respect of the employee in relation to that employment, a certificate had been issued for the preceding taxation year pursuant to any of sections 19 to 21 in respect of the employee in relation to that employment and is valid ; and

(3)  it may reasonably be considered that the conditions relating to that employment on which was based the decision of the Minister of Finance to issue the qualification certificate referred to in paragraph 1 or the certificate referred to in paragraph 2 remain essentially the same for the period or part of the period.

However, in the case of an employee to whom subparagraph 1 of the first paragraph applies by reason of a qualification certificate issued in respect of the employee pursuant to section 15 in relation to that employment, or to whom subparagraph 2 of the first paragraph applies by reason of a certificate issued in respect of the employee pursuant to section 20 or 21 in relation to that employment, the first paragraph applies only in respect of the part of the remuneration of the employee that corresponds to one-third of the employee’s wages, within the meaning of section 72, from that employment for the period or part of the period concerned.

1999, c. 86, s. 63.