© Éditeur officiel du Québec
Updated to 1 April 2016
This document has official status.



CHAPTER I.0.1 
PERSONAL TAX CREDITS
1989, c. 5, s. 104; 1999, c. 83, s. 84.

752.0.0.1. Subject to section 752.0.0.3, an individual may deduct from the individual's tax otherwise payable for a taxation year under this Part an amount equal to the amount obtained by multiplying the percentage specified in section 750.1 for the year by $10,215.

2005, c. 1, s. 150; 2005, c. 38, s. 135; 2009, c. 5, s. 261.

752.0.0.2. (Repealed).

2005, c. 1, s. 150; 2005, c. 38, s. 136; 2009, c. 5, s. 262.

752.0.0.3. If an individual is resident in Québec on the last day of a taxation year and is the beneficiary of a covered benefit attributable to that year, the amount in dollars referred to in section 752.0.0.1 that would otherwise be taken into account in computing the amount deductible by the individual for the year under section 752.0.0.1, with reference to section 750.2, is to be reduced by the aggregate of all amounts each of which is an amount determined for the year under any of sections 752.0.0.4 to 752.0.0.6.

In the first paragraph and sections 752.0.0.4 to 752.0.0.6, “covered benefit” attributable to a taxation year means an amount that is an income replacement indemnity, or a compensation for the loss of financial support, determined in that year under a public compensation plan and established on the basis of net income following an accident, employment injury, bodily injury or death or in order to prevent bodily injury, other than

 (a) an amount that is attributable to a period preceding the year;

 (b) an amount that is the net salary or wages paid by an employer, in accordance with the Act respecting industrial accidents and occupational diseases (chapter A-3.001), for each day or part of a day when a worker must be absent from work to receive care or undergo medical examinations in connection with the worker's injury, or to take part in a personal rehabilitation program; or

 (c) an amount that replaces income described in paragraph e of section 725.

For the purposes of the first paragraph, if an individual dies or ceases to be resident in Canada in a taxation year, the last day of the individual's taxation year is the day on which the individual died or the last day on which the individual was resident in Canada.

This section does not apply in respect of an individual's separate fiscal return filed under the second paragraph of section 429 or section 681 or 1003.

2005, c. 38, s. 137; 2009, c. 5, s. 263; 2015, c. 21, s. 273.

752.0.0.4. If section 752.0.0.3 applies to an individual in respect of a covered benefit attributable to a taxation year and the amount of which is determined by the Commission des normes, de l’équité, de la santé et de la sécurité du travail, there shall be included in computing, for that year, the aggregate referred to in the first paragraph of section 752.0.0.3, an amount equal to the total of

 (a) in respect of a covered benefit attributable to the year and paid by an employer for the first 14 full days following the beginning of the individual's disability, the lesser of the amounts determined by the following formulas:

(i)  A × B, and

(ii)  0.90 × C/D × E; and

 (b) in respect of a covered benefit attributable to the year, other than the covered benefit referred to in subparagraph a, for each day of the year for which the covered benefit is determined, in this section referred to as the particular day, the lesser of the amounts determined for the particular day by the following formulas:

(i)  [(0.90 × A × F/G) - (A × H/G)] × (1 - I), and

(ii)  [(0.90 × J / G) - K] × (1 - I).

In the formulas in the first paragraph,

 (a) A is the percentage obtained by dividing the percentage specified in paragraph a of section 750 that is applicable for the year by the percentage specified in section 750.1 for the year;

 (b) B is the total of the covered benefits attributable to the year and paid by the employer for the first 14 full days following the beginning of the individual's disability;

 (c) C is the amount determined under the third paragraph of section 1015.3 that is applicable for the year;

 (d) D is the number of days in the year, excluding Saturdays and Sundays;

 (e) E is the number of days in the year, excluding Saturdays and Sundays, between the day on which the individual's disability begins and the day on which the individual returns to work, but without exceeding 14 days;

 (f) F is the annual gross revenue used as a basis for determining, for the particular day, the covered benefit attributable to the year, or, if the covered benefit attributable to the year is adjusted in accordance with section 119 of the Act respecting the Québec Pension Plan (chapter R-9), the amount that would be the annual gross revenue used as a basis for determining, for the particular day, the covered benefit attributable to the year, if it were adjusted according to the same rules as those applicable to the covered benefit;

 (g) G is the number of days in the year;

 (h) H is the annual gross revenue from a suitable employment or employment held, for the particular day;

 (i) I is the percentage that applies for the purpose of reducing, for the particular day, the covered benefit attributable to the year;

 (j) J is the amount in dollars referred to in section 752.0.0.1 that is applicable for the year, with reference to section 750.2, to the extent that the amount is used by the Commission des normes, de l’équité, de la santé et de la sécurité du travail to establish the weighted net income for the purpose of computing, for the particular day, the covered benefit attributable to the year; and

 (k) K is the lesser of

(i)  the amount obtained by multiplying the percentage determined for the year under subparagraph a by the amount obtained by dividing the annual gross revenue from a suitable employment or employment held, for the particular day, by the number of days in the year, and

(ii)  the amount obtained by dividing the recognized amounts used to establish the weighted net income from a suitable employment or employment held, for the particular day, by the number of days in the year.

For the purposes of subparagraph h and subparagraph i of subparagraph k of the second paragraph, annual gross revenue from a suitable employment or employment held, for a particular day, means the annual gross revenue relating to a suitable employment or employment held that is taken into account in determining, for the particular day, the covered benefit attributable to the year, including the annual gross revenue from any benefit paid to the individual, because of a termination of employment, under an Act of Québec or of any other jurisdiction, other than the Act respecting industrial accidents and occupational diseases (chapter A-3.001), that is taken into account in determining, for the particular day, the covered benefit attributable to the year, or, if the covered benefit attributable to the year is adjusted in accordance with section 119 of the Act respecting the Québec Pension Plan, the amount that would be the annual gross revenue relating to a suitable employment or employment held that would be taken into account in determining, for the particular day, the covered benefit attributable to the year if, from the year following that for which that gross revenue was last established, it were adjusted according to the same rules as those applicable to the covered benefit.

For the purposes of subparagraph ii of subparagraph k of the second paragraph, “recognized amounts used to establish the weighted net income from a suitable employment or employment held”, for a particular day, means the amount in dollars referred to in section 752.0.0.1 that is applicable for the year, with reference to section 750.2, to the extent that the amount is used by the Commission des normes, de l’équité, de la santé et de la sécurité du travail to establish the weighted net income from a suitable employment or employment held, for the particular day.

2005, c. 38, s. 137; 2009, c. 5, s. 264; 2015, c. 15, s. 237.

752.0.0.5. If section 752.0.0.3 applies to an individual in respect of a covered benefit attributable to a taxation year and the amount of which is determined by the Société de l'assurance automobile du Québec, there shall be included in computing for that year the aggregate referred to in the first paragraph of section 752.0.0.3, an amount equal to the aggregate of all amounts each of which is, for each day of the year for which the covered benefit is determined, in this section referred to as the particular day, equal to the lesser of the amounts determined for the particular day by the following formulas:

 (a) {[(0.90 × A × B/C) - (D × A × E/C)] × (1 - F)} - G/C; and

 (b) {[(0.90 × H/C) - (D × I)] × (1 - F)} - G/C.

In the formulas in the first paragraph,

 (a) A is the percentage obtained by dividing the percentage specified in paragraph a of section 750 that is applicable for the year by the percentage specified in section 750.1 for the year;

 (b) B is the annual gross revenue used as a basis for determining, for the particular day, the covered benefit attributable to the year, or, if the covered benefit attributable to the year is adjusted in accordance with section 119 of the Act respecting the Québec Pension Plan (chapter R-9), the amount that would be the annual gross revenue used as a basis for determining, for the particular day, the covered benefit attributable to the year, if it were adjusted according to the same rules as those applicable to the covered benefit;

 (c) C is the number of days in the year;

 (d) D is,

(i)  if only part of the net income from an employment held is used to reduce, for the particular day, the covered benefit attributable to the year, the percentage attributed under the public compensation plan in respect of that net income, and

(ii)  in any other case, 100%;

 (e) E is the annual gross revenue from a suitable employment or employment held, for the particular day;

 (f) F is the percentage that applies for the purpose of reducing, for the particular day, the covered benefit attributable to the year;

 (g) G is the amount obtained by multiplying the percentage determined for the year under subparagraph a by the amount that is payable for the year as an old age pension or as a disability benefit payable under a plan established by a jurisdiction, other than Québec, that is equivalent to the plan established under the Act respecting the Québec Pension Plan, and that is, in determining, for the particular day, the covered benefit attributable to the year, used by the Société de l'assurance automobile du Québec to reduce the amount of that covered benefit;

 (h) H is the amount in dollars referred to in section 752.0.0.1 that is applicable for the year, with reference to section 750.2, to the extent that the amount is used by the Société de l'assurance automobile du Québec to establish the weighted net income for the purpose of computing, for the particular day, the covered benefit attributable to the year; and

 (i) I is the lesser of

(i)  the amount obtained by multiplying the percentage determined for the year under subparagraph a by the amount obtained by dividing the annual gross revenue from a suitable employment or employment held, for the particular day, by the number of days in the year, and

(ii)  the amount obtained by dividing the recognized amounts used to establish the weighted net income from a suitable employment or employment held, for the particular day, by the number of days in the year.

For the purposes of subparagraph e and subparagraph i of subparagraph i of the second paragraph, annual gross revenue from a suitable employment or employment held, for a particular day, means the annual gross revenue relating to a suitable employment or employment held that is taken into account in determining, for the particular day, the covered benefit attributable to the year, or, if the covered benefit attributable to the year is adjusted in accordance with section 119 of the Act respecting the Québec Pension Plan, the amount that would be the annual gross revenue relating to a suitable employment or employment held that would be taken into account in determining, for the particular day, the covered benefit attributable to the year if, from the year for which that gross revenue was last established, it were adjusted according to the same rules as those applicable to the covered benefit.

For the purposes of subparagraph ii of subparagraph i of the second paragraph, “recognized amounts used to establish the weighted net income from a suitable employment or employment held”, for a particular day, means the amount in dollars referred to in section 752.0.0.1 that is applicable for the year, with reference to section 750.2, to the extent that the amount is used by the Société de l'assurance automobile du Québec to establish the weighted net income from a suitable employment or employment held, for the particular day.

2005, c. 38, s. 137; 2009, c. 5, s. 265.

752.0.0.6. If section 752.0.0.3 applies to an individual in respect of a covered benefit attributable to a taxation year and the amount of which is determined by an entity, other than the Commission des normes, de l’équité, de la santé et de la sécurité du travail and the Société de l'assurance automobile du Québec, there must be included in computing, for that year, the aggregate referred to in the first paragraph of section 752.0.0.3, an amount equal to the aggregate of all amounts each of which is, for each day of the year for which the covered benefit is determined (in this section referred to as the “particular day”), equal to the lesser of the amounts determined for the particular day by the following formulas:

 (a) {[(A × B × C/D) - (A × E × F/D)] × (1 - G)} - H/D; and

 (b) {[(B × I/D) - J] × (1 - G)} - H/D.

In the formulas in the first paragraph,

 (a) A is the percentage obtained by dividing the percentage specified in paragraph a of section 750 that is applicable for the year by the percentage specified in section 750.1 for the year;

 (b) B is the percentage that applies to the income insured by the public compensation plan for the purpose of determining, for the particular day, the covered benefit attributable to the year;

 (c) C is the annual gross revenue used as a basis for determining, for the particular day, the covered benefit attributable to the year, or, if the covered benefit attributable to the year is adjusted in accordance with the public compensation plan, the amount that would be the annual gross revenue used as a basis for determining, for the particular day, the covered benefit attributable to the year, if it were adjusted according to the same rules as those applicable to the covered benefit;

 (d) D is the number of days in the year; and

 (e) E is,

(i)  if only a portion of the income, other than the recognized income on the date of the event giving rise to the covered benefit attributable to the year, is taken into consideration for the purpose of determining, for the particular day, the covered benefit attributable to the year, the percentage attributed under the public compensation plan in respect of that income, and

(ii)  in any other case, 100%;

 (f) F is the annual gross revenue from a suitable employment or employment held, for the particular day;

 (g) G is the percentage that applies for the purpose of reducing, for the particular day, the covered benefit attributable to the year;

 (h) H is the amount obtained by multiplying the percentage determined for the year under subparagraph a by the amount that is, in determining, for the particular day, the covered benefit attributable to the year, used to reduce the amount of that covered benefit;

 (i) I is,

(i)  if the taxation year is the year 2005, $9,330,

(ii)  if the taxation year is the year 2006, $9,555,

(iii)  if the taxation year is the year 2007, $9,745,

(iv)  if the taxation year is the year 2008, $10,215, and

(v)  if the taxation year is the year 2009 or a subsequent year, the amount in dollars referred to in section 752.0.0.1 that is applicable for the year, with reference to section 750.2; and

 (j) J is the lesser of

(i)  the amount obtained by multiplying the percentage determined for the year under subparagraph a by the amount obtained by multiplying the percentage determined for the year under subparagraph e by the amount obtained by dividing the annual gross revenue from a suitable employment or employment held, for the particular day, by the number of days in the year, and

(ii)  the amount obtained by multiplying the percentage determined for the year under subparagraph e by the amount obtained by dividing the amount determined for the year under subparagraph i by the number of days in the year.

For the purposes of subparagraph f and subparagraph i of subparagraph j of the second paragraph, “annual gross revenue from a suitable employment or employment held”, for a particular day, means the annual gross revenue relating to a suitable employment or employment held, including any other amount that replaces work income, that is taken into account in determining, for the particular day, the covered benefit attributable to the year, or, if the covered benefit attributable to the year is adjusted in accordance with the public compensation plan, the amount that would be the annual gross revenue relating to a suitable employment or employment held that would be taken into account in determining, for the particular day, the covered benefit attributable to the year if, from the year for which that gross revenue was last established, it were adjusted according to the same rules as those applicable to the covered benefit.

2005, c. 38, s. 137; 2009, c. 5, s. 266; 2015, c. 15, s. 237.

752.0.1. An individual may deduct from the individual's tax otherwise payable for a taxation year under this Part an amount equal to the amount obtained by multiplying the percentage specified in section 750.1 for the year by the aggregate of

 (a) (paragraph repealed);

 (b) (paragraph repealed);

 (c) (paragraph repealed);

 (d) for each person who is under 18 years of age throughout the year and who is a child of the individual if the person is a dependant of the individual in the year and if the person is not a person in respect of whom the individual's eligible spouse for the year, within the meaning of sections 776.41.1 to 776.41.4, deducts an amount under section 776.41.5 from the eligible spouse's tax otherwise payable for the year under this Part, $1,860 in respect of each completed term, without exceeding two, which began in the year and during which the person was in full-time attendance at an educational institution designated by the Minister of Education, Recreation and Sports or the Minister of Higher Education, Research, Science and Technology for the purposes of the loans and bursaries program for full-time studies in vocational training at the secondary level and for full-time studies at the postsecondary level established under the Act respecting financial assistance for education expenses (chapter A-13.3), where the person was enrolled in an educational program referred to in section 752.0.2.1; and

 (e) (paragraph repealed);

 (f) $2,705 for each person, other than the individual's spouse, who

(i)  is related to the individual by blood, marriage or adoption,

(ii)  during the year, is 18 years of age or over,

(iii)  during the year, ordinarily lives with the individual,

(iv)  during the year, is dependent for support on the individual, and

(v)  is not a person in respect of whom

(1)  the individual's eligible spouse for the year, within the meaning of sections 776.41.1 to 776.41.4, deducts an amount under section 776.41.5 from the eligible spouse's tax otherwise payable for the year under this Part, or

(2)  an individual deducts an amount under section 776.41.14 from the individual's tax otherwise payable for the year under this Part;

 (g) (paragraph repealed);

 (h) (paragraph repealed);

 (i) (paragraph repealed);

 (j) (paragraph repealed).

1989, c. 5, s. 104; 1990, c. 7, s. 60; 1991, c. 8, s. 43; 1992, c. 1, s. 55; 1993, c. 19, s. 51; 1995, c. 1, s. 71; 1997, c. 14, s. 109; 1997, c. 31, s. 77; 1997, c. 85, s. 119; 1999, c. 83, s. 85; 2001, c. 51, s. 48; 2003, c. 9, s. 66; 2004, c. 21, s. 192; 2005, c. 1, s. 151; 2005, c. 28, s. 195; 2005, c. 38, s. 138; 2009, c. 5, s. 267; 2013, c. 28, s. 139.

752.0.1.1. If, for the purpose of establishing the amount that an individual may deduct from the individual's tax otherwise payable for a taxation year under section 752.0.1, the individual includes, in the aggregate referred to in that section, an amount under paragraph f of that section in respect of a person who reaches 18 years of age in the year, the amount that would otherwise be applicable for the year under that paragraph is to be replaced by the proportion of that amount that the number of months in the year that follow the month in which that person reaches 18 years of age is of 12.

2005, c. 1, s. 152; 2005, c. 38, s. 139; 2009, c. 5, s. 268.

752.0.1.2. (Repealed).

2005, c. 1, s. 152; 2006, c. 13, s. 57; 2009, c. 5, s. 269.

752.0.2. The amount to which an individual is entitled under section 752.0.1 in respect of one person for a taxation year must be reduced by an amount equal to 80% of the amount that is the person's income for the year under this Part or, if the person was not resident in Canada throughout the year, that would be the person's income for the year under this Part, computed as if the person had been resident in Québec and in Canada throughout the year or, if the person died in the year, throughout the period of the year preceding the time of death.

For the purposes of the first paragraph, the income of a person for a taxation year under this Part must be computed without reference to paragraph g of section 312 and Chapter VII.1 of Title VI of Book III.

1989, c. 5, s. 104; 1995, c. 1, s. 72; 1997, c. 85, s. 120; 2002, c. 40, s. 67; 2003, c. 9, s. 67; 2005, c. 1, s. 153; 2009, c. 5, s. 270.

752.0.2.1. An educational program to which paragraph d of section 752.0.1 refers means any of the following programs that provides that each student taking the program spend not less than 9 hours per week on courses or work in the program:

 (a) where the educational institution is situated in Québec, an educational program recognized by the Minister of Education, Recreation and Sports or the Minister of Higher Education, Research, Science and Technology for the purposes of the loans and bursaries program for full-time studies in vocational training at the secondary level and for full-time studies at the postsecondary level established under the Act respecting financial assistance for education expenses (chapter A-13.3); and

 (b) where the educational institution is situated outside Québec, an educational program at the college level or at the university level or the equivalent.

If the student is a person who is deemed to be pursuing studies on a full-time basis under section 752.0.2.2, the first paragraph is to be read as if “spend not less than nine hours per week on courses or work in the program” was replaced by “receive a minimum of 20 hours of instruction per month”.

2001, c. 51, s. 49; 2005, c. 28, s. 195; 2005, c. 38, s. 140; 2013, c. 28, s. 139.

752.0.2.2. For the purposes of paragraph d of section 752.0.1, a person is deemed to be pursuing studies on a full-time basis during a taxation year if the person has a major functional deficiency within the meaning of the Regulation respecting financial assistance for education expenses (chapter A-13.3, r. 1), and the person, for this reason, pursues studies on a part-time basis during that taxation year.

2005, c. 38, s. 141.

752.0.3. A deduction may be granted under section 752.0.1, by virtue of paragraph d of that section, only if the enrolment at an educational institution in an educational program referred to in section 752.0.2.1 is proven by filing with the Minister a certificate in a prescribed form issued by the educational institution and containing the prescribed information.

1989, c. 5, s. 104; 1994, c. 22, s. 350; 1997, c. 85, s. 121; 2001, c. 51, s. 50.

752.0.4. (Repealed).

1989, c. 5, s. 104; 2003, c. 9, s. 68; 2005, c. 1, s. 154; 2009, c. 5, s. 271.

752.0.5. (Repealed).

1989, c. 5, s. 104; 2005, c. 1, s. 155.

752.0.5.1. (Repealed).

1999, c. 83, s. 86; 2005, c. 1, s. 155.

752.0.5.2. (Repealed).

2003, c. 9, s. 69; 2005, c. 1, s. 156; 2009, c. 5, s. 272.

752.0.6. (Repealed).

1989, c. 5, s. 104; 1994, c. 22, s. 256; 1998, c. 16, s. 185; 2003, c. 9, s. 70.

752.0.7. Where, for a taxation year, more than one individual is entitled to deduct an amount under sections 752.0.1 to 752.0.3 in respect of the same dependant, the following rules apply:

 (a) the amount that an individual could deduct, but for this section, for the year under sections 752.0.1 to 752.0.3 in respect of that person shall be reduced to the proportion of that amount determined, in respect of the individual, by all the individuals who would so be entitled to a deduction for the year under those sections in respect of that person;

 (b) the aggregate of the proportions determined for the purposes of paragraph a by all the individuals, in respect of that person, shall in no case exceed 1 for the year; and

 (c) where the aggregate of the proportions determined for the purposes of paragraph a exceeds 1 for the year, the Minister may fix the amount deductible by each individual for the year under those sections in respect of that person.

1989, c. 5, s. 104; 2003, c. 9, s. 71; 2005, c. 1, s. 157; 2009, c. 5, s. 273.

CHAPTER I.0.2 
TAX CREDIT FOR PERSONS LIVING ALONE, WITH RESPECT TO AGE AND FOR RETIREMENT INCOME
1989, c. 5, s. 104; 1997, c. 85, s. 122.

752.0.7.1. In this chapter,

age of eligibility, in relation to a taxation year, means

 (a) 66 years of age, for the taxation yearn 2016;

 (b) 67 years of age, for the taxation year 2017;

 (c) 68 years of age, for the taxation year 2018;

 (d) 69 years of age, for the taxation year 2019; and

 (e) 70 years of age, for a taxation year subsequent to the taxation year 2019;

eligible spouse of an individual for a taxation year means the person who is the individual's eligible spouse for the year within the meaning of sections 776.41.1 to 776.41.4;

family income of an individual for a taxation year means the amount by which the aggregate of the income of the individual for the year and the income, for the year, of the individual's eligible spouse for the year exceeds $29,290.

1997, c. 85, s. 123; 2003, c. 9, s. 72; 2005, c. 1, s. 158; 2009, c. 5, s. 274; 2015, c. 36, s. 41.

752.0.7.2. (Repealed).

1997, c. 85, s. 123; 2003, c. 9, s. 73.

752.0.7.3. For the purposes of the definition of family income in section 752.0.7.1, where an individual was not resident in Canada throughout a taxation year, the individual’s income for the year is deemed to be equal to the income that would be determined in respect of the individual for the year under this Part if the individual had been resident in Québec and in Canada throughout the year or, where the individual died in the year, throughout the period of the year preceding the time of death.

1997, c. 85, s. 123; 2001, c. 53, s. 112; 2003, c. 9, s. 74.

752.0.7.4. An individual may deduct from the individual's tax otherwise payable for a taxation year under this Part an amount equal to the amount obtained by multiplying the percentage specified in section 750.1 for the year by the amount by which the aggregate of the following amounts exceeds 15% of the individual's family income for the year:

 (a) in respect of the individual,

(i)  $1,180, if the following conditions are complied with:

(1)  (subparagraph repealed),

(2)  the individual ordinarily lives, throughout the year or, if the individual dies in the year, throughout the period of the year before the time of death, in a self-contained domestic establishment maintained by the individual and in which no person, other than the individual, a person under 18 years of age or a person of whom the individual is the father or mother and who is an eligible student for the year, within the meaning of section 776.41.12, lives during the year or, if the individual dies in the year, during the period of the year before the time of death, and

(3)  the individual files with the Minister, for the year, in relation to the self-contained domestic establishment, a copy of the individual's account of property taxes for the year, or, if the individual is unable to file a copy of that account or if the individual does not own the self-contained domestic establishment, the prescribed form, on or before the individual's filing-due date for the year;

(i.1)  $1,465, if the individual complies with the conditions set out in subparagraphs 2 and 3 of subparagraph i and

(1)  the individual lives in the year with an eligible student referred to in subparagraph 2 of subparagraph i, and

(2)  at the end of the year or on the date of the individual's death, the individual has no child in respect of whom the individual is entitled to an amount deemed under section 1029.8.61.18, for the last month of the year, to be an overpayment of the individual's tax payable;

(ii)  the lesser of $2,000 and the amount referred to in section 752.0.8 in respect of the individual for the year;

(iii)  where the individual has attained, before the end of the year, the age of eligibility in relation to that year, $2,200;

 (b) in respect of the individual's eligible spouse for the year,

(i)  $1,180, if the following conditions are complied with:

(1)  (subparagraph repealed),

(2)  the eligible spouse ordinarily lives, throughout the year, in a self-contained domestic establishment maintained by the eligible spouse and in which no person, other than the eligible spouse, a person under 18 years of age or a person of whom the eligible spouse is the father or mother and who is an eligible student for the year, within the meaning of section 776.41.12, lives during the year, and

(3)  the individual files with the Minister, for the year, in relation to the self-contained domestic establishment, a copy of the account of property taxes, for the year, of the individual's eligible spouse, or, if the individual is unable to file a copy of that account or if the spouse does not own the self-contained domestic establishment, the prescribed form, on or before the individual's filing-due date for the year, unless that copy or the form is otherwise filed with the Minister for the year by the spouse;

(i.1)  $1,465, if the eligible spouse complies with the conditions set out in subparagraphs 2 and 3 of subparagraph i and

(1)  the eligible spouse lives in the year with an eligible student referred to in subparagraph 2 of subparagraph i, and

(2)  at the end of the year or on the date of the eligible spouse's death, the eligible spouse has no child in respect of whom the eligible spouse is entitled to an amount deemed under section 1029.8.61.18, for the last month of the year, to be an overpayment of the eligible spouse's tax payable;

(ii)  the lesser of $2,000 and the amount referred to in section 752.0.8 in respect of the eligible spouse for the year;

(iii)  where the eligible spouse has attained, before the end of the year, the age of eligibility in relation to that year, $2,200.

1997, c. 85, s. 123; 1999, c. 83, s. 87; 2001, c. 51, s. 51; 2002, c. 40, s. 68; 2003, c. 9, s. 75; 2005, c. 1, s. 159; 2009, c. 5, s. 275; 2009, c. 15, s. 135; 2011, c. 1, s. 38; 2015, c. 36, s. 42.

752.0.7.4.1. If, for the purpose of establishing the amount that an individual may deduct from the individual's tax otherwise payable for a taxation year under section 752.0.7.4, the individual includes, in the aggregate referred to in that section, a particular amount under subparagraph i.1 of paragraph a or b of section 752.0.7.4 and the individual or the individual's eligible spouse for the year was entitled to receive, for a month of the year, an amount deemed under section 1029.8.61.18 to be an overpayment of their tax payable for the year, the particular amount that would otherwise be applicable for the year under that paragraph is to be reduced by the proportion of that particular amount that the number of months in the year in respect of which the individual or the individual's eligible spouse was entitled to such a deemed amount is of 12.

2009, c. 5, s. 276.

752.0.7.5. Where, for a taxation year, a particular individual to whom section 752.0.7.4 applies has an eligible spouse for the year who is also an individual to whom that section applies,

 (a) the amount deductible by the particular individual for the year under that section 752.0.7.4, determined without reference to this section, shall be reduced by such portion of the amount as is designated in respect of the particular individual by the particular individual and the eligible spouse in prescribed form filed by the particular individual with the individual's fiscal return under this Part for the year;

 (b) the amount deductible by the eligible spouse for the year under section 752.0.7.4, determined without reference to this section, shall be reduced by the amount determined for the year under paragraph a in respect of the particular individual;

 (c) where the particular individual and the eligible spouse cannot agree on the portion of the amount that may be designated for the year in accordance with paragraph a in respect of the particular individual, the Minister may designate such portion and, for the purposes of paragraph a, the designation is deemed to have been made in prescribed form by the particular individual and the eligible spouse; and

 (d) the amount determined for the year under paragraph a in respect of the particular individual and the amount determined for the year under paragraph b in respect of the eligible spouse are deemed to be the amount deductible by the particular individual for the year under that section 752.0.7.4 and the amount so deductible by the eligible spouse for the year, respectively.

1997, c. 85, s. 123.

752.0.7.6. An individual who has an eligible spouse for a taxation year is entitled to the deduction under section 752.0.7.4 for the taxation year only if the individual files with the Minister, together with the individual's fiscal return under this Part for the year, a certificate from the spouse in prescribed form.

1997, c. 85, s. 123.

752.0.8. The amount to which subparagraph ii of paragraph a of section 752.0.7.4 refers for a taxation year in respect of an individual or, as the case may be, the amount to which subparagraph ii of paragraph b of that section refers for a taxation year in respect of an individual's eligible spouse for the year is equal to the aggregate of the following amounts:

 (a) the aggregate of all amounts each of which is an amount included in computing the individual's or, as the case may be, the eligible spouse's income for the year that is

(i)  a payment in respect of a life annuity out of or under a pension plan (other than a pooled registered pension plan) or a specified pension plan,

(ii)  an annuity payment under a registered retirement savings plan or under a new plan as referred to in section 914 or under an annuity in respect of which an amount is included in computing the individual's or, as the case may be, the eligible spouse's income by reason of paragraph c.2 of section 312,

(iii)  a payment out of or under a registered retirement income fund or under an amended fund as referred to in section 961.9,

(iii.1)  a payment, other than a payment described in subparagraph i, payable on a periodic basis under a money purchase provision, within the meaning assigned by section 965.0.1, of a registered pension plan,

(iii.2)  an amount included under Title VI.0.2 of Book VII,

(iv)  an annuity payment under a deferred profit sharing plan or under a plan the registration of which is revoked by virtue of subsection 14 or 14.1 of section 147 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)),

(v)  a payment described in subparagraph v of paragraph k of subsection 2 of section 147 in the English text of the Income Tax Act, or

(vi)  the amount by which an annuity payment included in computing the individual's or, as the case may be, the eligible spouse's income for the year under paragraph c of section 312, other than an income-averaging annuity payment respecting income from artistic activities, exceeds the capital element of that payment as determined under paragraph f of section 336; and

 (b) the aggregate of all amounts each of which is an amount included in computing the individual's or, as the case may be, the eligible spouse's income for the year by reason of sections 92.11 to 92.19.

1989, c. 5, s. 104; 1991, c. 25, s. 90; 1993, c. 16, s. 280; 1997, c. 14, s. 110; 1997, c. 85, s. 124; 1998, c. 16, s. 251; 2005, c. 23, s. 93; 2007, c. 12, s. 85; 2009, c. 15, s. 136; 2013, c. 10, s. 50; 2015, c. 21, s. 274.

752.0.9. (Repealed).

1989, c. 5, s. 104; 1991, c. 25, s. 91; 1994, c. 22, s. 257; 1997, c. 14, s. 111; 1997, c. 85, s. 125; 1999, c. 83, s. 88.

752.0.10. The amounts described in section 752.0.8 do not include any amount that is

 (a) the amount of any pension, supplement or allowance received under the Old Age Security Act (R.S.C. 1985, c. O-9) or a similar payment made under a provincial law;

 (b) the amount of any benefit paid under the Act respecting the Québec Pension Plan (chapter R-9) or under a similar plan within the meaning of the said Act;

 (c) a death benefit;

 (d) the amount by which a particular amount required to be included in computing the individual's income for the year exceeds the amount by which the particular amount exceeds the aggregate of all amounts each of which is deducted otherwise than under the first paragraph of section 336.11 by the individual for the year in respect of that particular amount;

 (e) an amount received out of or under a retirement compensation arrangement, a salary deferral arrangement, an employee trust or an employee benefit plan;

 (e.1) a payment, other than a payment under the Judges Act (R.S.C. 1985, c. J-1) or the Lieutenant Governors Superannuation Act (R.S.C. 1985, c. L-8), received out of or under an unfunded supplemental plan or arrangement, being a plan or arrangement where

(i)  the payment was in respect of services rendered to an employer by the individual or the individual's spouse or former spouse as an employee, and

(ii)  the plan or arrangement would have been a retirement compensation arrangement or an employee benefit plan had the employer made a contribution in respect of the payment to a trust governed by the plan or arrangement; or

 (f) an amount that is

(i)  an amount included in the part of the individual's income for the year that may reasonably be considered to be earned in the part of the individual's exemption period, within the meaning of section 737.18.6, in relation to an employment that is included in the year,

(ii)  the part of an amount, included in the part of the individual's income for the year that may reasonably be considered to be earned in the part of a specified period of the individual, within the meaning of section 737.18.29, in relation to an employment that is included in the year, that is equal to the product obtained by multiplying that amount by the percentage determined under subparagraph a of the second paragraph of section 737.18.34 in respect of that period, or

(iii)   the part of an amount, included in the part of the individual's income for the year that may reasonably be considered to be earned in the part of a specified period of the individual, established under the fourth paragraph of section 65 of the Act respecting international financial centres (chapter C-8.3), in relation to an employment that is included in the year, that is equal to the product obtained by multiplying that amount by the percentage determined under subparagraph 1 of the second paragraph of that section 65 in respect of that period.

1989, c. 5, s. 104; 1997, c. 31, s. 78; 1999, c. 83, s. 89; 1999, c. 86, s. 99; 2000, c. 39, s. 59; 2001, c. 53, s. 113; 2003, c. 9, s. 76; 2004, c. 21, s. 193; 2005, c. 38, s. 142; 2009, c. 5, s. 277; 2013, c. 10, s. 51.

752.0.10.0.1. For the purposes of section 752.0.8, a payment in respect of a life annuity under a pension plan is deemed to include a payment in respect of bridging benefits, being benefits payable under a registered pension plan on a periodic basis and not less frequently than annually to an individual if

 (a) the individual or the individual's spouse or former spouse was a member, within the meaning of section 965.0.1, of the registered pension plan;

 (b) the benefits are payable for a period that ends no later than the end of the month following the month in which the member reaches 65 years of age or would have reached that age but for the member's death; and

 (c) the amount, expressed on an annual basis, of the benefits payable to the individual for a calendar year does not exceed the total of the maximum amount of benefits payable for that year under Part I of the Old Age Security Act (R.S.C. 1985, c. O-9) and the maximum amount of benefits, other than disability, death or survivor benefits, payable for that year under either the Act respecting the Québec Pension Plan (chapter R-9) or a similar plan within the meaning of paragraph u of section 1 of that Act.

2009, c. 5, s. 278.

CHAPTER I.0.2.0.1 
TAX CREDIT FOR EXPERIENCED WORKERS
2011, c. 34, s. 36.

752.0.10.0.2. In this chapter,

eligible work income of an individual for a taxation year means the aggregate of all amounts, other than excluded work income, each of which is

 (a) an amount included under any of sections 32 to 58.3 in computing the individual's income for the year from an office or employment;

 (b) the amount by which the individual's income for the year from any business the individual carries on either alone or as a partner actively engaged in the business exceeds the aggregate of the individual's losses for the year from such businesses;

 (c) an amount included in computing the individual's income for the year under paragraph e.2 or e.6 of section 311; or

 (d) an amount included in computing the individual's income for the year under paragraph h of section 312;

excess work income limit applicable for a taxation year means an amount equal to

 (a) $3,000, for any of the taxation years 2012 to 2014; and

 (b) $4,000, for the taxation year 2015;

 (c) $6,000, for the taxation year 2016;

 (d) $8,000, for the taxation year 2017; and

 (e) $10,000, for a taxation year subsequent to the taxation year 2017;

excess work income limit of a 63-year-old worker applicable for a taxation year means an amount equal to

 (a) $4,000, for the taxation year 2017; and

 (b) $6,000, for a taxation year subsequent to the taxation year 2017;

excess work income limit of a 64-year-old worker applicable for a taxation year means an amount equal to

 (a) $4,000, for the taxation year 2016;

 (b) $6,000, for the taxation year 2017; and

 (c) 8,000, for a taxation year subsequent to the taxation year 2017;

excluded work income of an individual for a taxation year means

 (a) an amount included in computing the individual's income for the year from a previous office or employment, if each of the amounts that make up the income is the value of a benefit received or enjoyed by the individual in the year because of that office or employment;

 (b) an amount deducted in computing the individual's taxable income for the year; or

 (c) (paragraph repealed);

 (d) an amount included in computing the individual's income for the year from an office or employment with an employer, where the individual does not deal at arm's length with the employer or, if the individual is employed by the members of a partnership, with any of those members;

reduction threshold applicable for a taxation year means the amount referred to in subparagraph d of the fourth paragraph of section 750.2 that, taking into account the application of that section, is to be used for the year.

2011, c. 34, s. 36; 2015, c. 21, s. 275; 2015, c. 36, s. 43.

752.0.10.0.3. An individual who on the last day of a taxation year or, if the individual dies in the year, on the date of the individual's death is resident in Québec and is 63 years of age or over may, subject to the fourth paragraph, deduct from the individual's tax otherwise payable for the year under this Part an amount determined by the formula


[A × B × (1 - C)] - (0.05 × D).


In the formula in the first paragraph,

 (a) A is the percentage specified in paragraph a of section 750 that is applicable for the year;

 (b) B is

(i)  for a taxation year preceding the taxation year 2016, the lesser of the excess work income limit applicable for the year and the amount by which the individual's eligible work income for the year attributable to a period when the individual is 65 years of age or over exceeds $5,000, or

(ii)  for a taxation year following the taxation year 2015, the amount determined under the third paragraph;

 (c) C is the percentage specified in the first paragraph of section 358.0.3 that is applicable for the year; and

 (d) D is

(i)  for a taxation year preceding the taxation year 2016, zero, or

(ii)  for a taxation year following the taxation year 2015, the amount by which the individual's eligible work income for the year exceeds the reduction threshold applicable for the year.

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

 (a) where the individual is 66 years of age or over at the end of the year or, if the individual dies in the year, on the date of the individual's death, the lesser of the excess work income limit applicable for the year and the amount by which the individual's eligible work income for the year attributable to a period in the year when the individual is 65 years of age or over exceeds $5,000;

 (b) where the individual is 65 years of age at the end of the year or, if the individual dies in the year, on the date of the individual's death, the lesser of the excess work income limit applicable for the year and the aggregate of

(i)  the lesser of the excess work income limit of a 64-year-old worker applicable for the year and the amount by which the individual's eligible work income for the year that is attributable to the period in the year throughout which the individual is 64 years of age exceeds $5,000, and

(ii)  the amount by which the individual's eligible work income for the year that is attributable to the period in the year throughout which the individual is 65 years of age exceeds the amount by which the individual's eligible work income for the year that is attributable to the period in the year throughout which the individual is 64 years of age exceeds $5,000;

 (c) where the individual is 64 years of age at the end of the year or, if the individual dies in the year, on the date of the individual's death,

(i)  for the taxation year 2016, the lesser of the excess work income limit of a 64-year-old worker applicable for the year and the amount by which the individual's eligible work income for the year that is attributable to the period in the year throughout which the individual is 64 years of age exceeds $5,000, or

(ii)  for a taxation year following the taxation year 2016, the lesser of the excess work income limit of a 64-year-old worker applicable for the year and the aggregate of

(1)  the lesser of the excess work income limit of a 63-year-old worker applicable for the year and the amount by which the individual's eligible work income for the year that is attributable to the period in the year throughout which the individual is 63 years of age exceeds $5,000, and

(2)  the amount by which the individual's eligible work income for the year that is attributable to the period in the year throughout which the individual is 64 years of age exceeds the amount by which the individual's eligible work income for the year that is attributable to the period in the year throughout which the individual is 63 years of age exceeds $5,000; or

 (d) where the individual is 63 years of age at the end of the year or, if the individual dies in the year, on the date of the individual's death,

(i)  for the taxation year 2016, zero, or

(ii)  for a taxation year following the taxation year 2016, the lesser of the excess work income limit of a 63-year-old worker applicable for the year and the amount by which the individual's eligible work income for the year that is attributable to the period in the year throughout which the individual is 63 years of age exceeds $5,000.

The amount that an individual born before 1 January 1951 may deduct under this section from the individual's tax otherwise payable under this Part for a particular taxation year following the taxation year 2015 cannot be less than the amount the individual could so deduct for the particular year if subparagraphs b and d of the second paragraph were read as follows:

“(b) B is the lesser of the excess work income limit applicable for the taxation year 2015 and the amount by which the individual's eligible work income for the particular year attributable to a period in the year when the individual is 65 years of age or over exceeds $5,000;”;

“(d) D is an amount equal to zero.”

2011, c. 34, s. 36; 2015, c. 36, s. 44.

CHAPTER I.0.2.0.2 
TAX CREDIT FOR VOLUNTEER FIREFIGHTERS
2012, c. 8, s. 113.

752.0.10.0.4. In this chapter,

eligible volunteer firefighting services means services (other than excluded services) provided by an individual in the individual's capacity as a volunteer firefighter to a fire safety service and that consist primarily of being on call for and responding to firefighting and related emergency calls, attending meetings held by the fire safety service and participating in required training related to the prevention or suppression of fires;

excluded services means services provided by an individual in the individual's capacity as a volunteer firefighter to a fire safety service to which the individual also provides firefighting services otherwise than as a volunteer.

2012, c. 8, s. 113.

752.0.10.0.5. An individual who provides eligible volunteer firefighting services in a taxation year may deduct, from the individual's tax otherwise payable for the year under this Part, an amount equal to the product obtained by multiplying $3,000 by the percentage specified in paragraph a of section 750 that is applicable for the year if

 (a) the individual performs in the year not less than 200 hours of service each of which is an hour of

(i)  eligible volunteer firefighting service for a fire safety service, or

(ii)  eligible search and rescue volunteer service for an eligible search and rescue organization, within the meaning assigned to those expressions by section 752.0.10.0.6; and

 (b) the individual files with the Minister, at the request of and in the manner determined by the Minister, a written certificate from the fire chief or an authorized representative of each fire safety service to which the individual provided eligible volunteer firefighting services in the year, attesting to the number of hours of such services performed in the year by the individual for that fire safety service and, if applicable, the certificate referred to in paragraph b of section 752.0.10.0.7 in respect of the eligible search and rescue volunteer services performed by the individual in the year.

2012, c. 8, s. 113; 2015, c. 24, s. 99.

CHAPTER I.0.2.0.3 
TAX CREDIT FOR SEARCH AND RESCUE VOLUNTEERS
2015, c. 24, s. 100.

752.0.10.0.6. In this chapter,

eligible search and rescue organization means a search and rescue organization

 (a) that is a member of the Search and Rescue Volunteer Association of Canada, the Civil Air Search and Rescue Association or the Canadian Coast Guard Auxiliary; or

 (b) whose status as a search and rescue organization is recognized by a provincial, municipal or public authority;

eligible search and rescue volunteer services means services (other than eligible volunteer firefighting services and excluded services) that are provided by an individual in the individual's capacity as a volunteer to an eligible search and rescue organization and that consist primarily of responding to and being on call for search and rescue and related emergency calls, attending meetings held by the organization and participating in required training related to search and rescue services;

eligible volunteer firefighting services has the meaning assigned by section 752.0.10.0.4;

excluded services means services provided by an individual in the individual's capacity as a volunteer to an organization to which the individual also provides search and rescue services otherwise than as a volunteer.

2015, c. 24, s. 100.

752.0.10.0.7. An individual who provides eligible search and rescue volunteer services in a taxation year may deduct, from the individual's tax otherwise payable for the year under this Part, an amount equal to the product obtained by multiplying $3,000 by the percentage specified in paragraph a of section 750 that is applicable for the year if

 (a) the individual performs in the year not less than 200 hours of service each of which is an hour of

(i)  eligible search and rescue volunteer service for an eligible search and rescue organization, or

(ii)  eligible volunteer firefighting service for a fire safety service;

 (b) the individual files with the Minister, at the request of and in the manner determined by the Minister, a written certificate from the team president, or other individual who fulfils a similar role, of each eligible search and rescue organization to which the individual provided eligible search and rescue volunteer services in the year, attesting to the number of hours of such services performed in the year by the individual for that organization and, if applicable, the certificate referred to in paragraph b of section 752.0.10.0.5 in respect of the eligible volunteer firefighting services performed by the individual in the year; and

 (c) the individual has not deducted an amount under section 752.0.10.0.5 for the year.

2015, c. 24, s. 100.

CHAPTER I.0.2.1 
TAX CREDITS FOR GIFTS
1993, c. 64, s. 67; 2015, c. 21, s. 276.

752.0.10.1. In this chapter,

eligible agricultural product means a product from a recognized farming business that is included in categories of meat or meat by-products, eggs, dairy products, fish, fruits, vegetables, grains, legumes, herbs, honey, maple syrup, mushrooms, nuts or anything else that is grown, raised or harvested and may legally be sold, distributed or offered for sale at a place other than the place where it is produced as food or drink intended for human consumption;

eligible cultural donee means

 (a) a registered charity operating in Québec in the field of arts or culture;

 (b) a registered cultural or communications organization;

 (c) a registered museum;

 (d) a museum established under the National Museums Act (chapter M-44); or

 (e) a museum situated in Québec and established under the Museums Act (S.C. 1990, chapter 3);

excepted gift of an individual means the gift of a share made by the individual if

 (a) the donee is not a private foundation;

 (b) the individual deals at arm's length with the donee; and

 (c) where the donee is a charitable organization or a public foundation, the individual deals at arm's length with each director, trustee, officer and like official of the donee;

major cultural gift of an individual, other than a trust, for a taxation year means the eligible amount of a gift of money, up to $25,000, made by the individual after 3 July 2013 but before 1 January 2018 in the year or in any of the four preceding taxation years, to an eligible cultural donee if

 (a) the eligible amount of the gift is at least $5,000; and

 (b) the conditions set out in section 752.0.10.2.1 are met in respect of that amount;

non-qualifying security of an individual at any time means

 (a) an obligation, other than an obligation of a financial institution described in the third paragraph to repay an amount deposited with the institution or an obligation listed on a designated stock exchange, of the individual or the individual's succession or of any person or partnership with whom or with which the individual or the succession does not deal at arm's length immediately after that time;

 (b) a share, other than a share listed on a designated stock exchange, of the capital stock of a corporation with which the individual or the succession or, if the individual is a trust, a person affiliated with the trust, does not deal at arm's length immediately after that time;

 (b.1) a beneficial interest of the individual or the succession in a trust that

(i)  immediately after that time is affiliated with the individual or the succession, or

(ii)  holds, immediately after that time, a non-qualifying security of the individual or succession, or held, at or before that time, a share described in paragraph b that is, after that time, held by the donee; or

 (c) any other security, other than a security listed on a designated stock exchange, issued or contracted by the individual or the succession or by any person or partnership with which the individual or the succession does not deal at arm's length immediately after that time or, if the person is a trust, with which the individual or the succession is affiliated immediately after that time;

patronage gift of an individual, other than a trust, means a gift of money made by the individual in the same taxation year and after 3 July 2013, to an eligible cultural donee if the eligible amount of the gift is

 (a) at least $25,000, where the gift is made in satisfaction of a registered pledge; or

 (b) at least $250,000, in any other case;

qualified property means property that is

 (a) land situated in Québec which, in the opinion of the Minister of Sustainable Development, Environment and Parks, has undeniable ecological value;

 (b) a real servitude granted for the benefit of land belonging to an entity referred to in paragraph a or b of the definition of “total gifts of qualified property” and encumbering the whole or part of land situated in Québec which, in the opinion of the Minister of Sustainable Development, Environment and Parks, has undeniable ecological value;

 (c) land situated in a region bordering on Québec which, in the opinion of the Minister of Sustainable Development, Environment and Parks, has undeniable ecological value, the preservation and conservation of which is important to the protection and development of Québec's ecological heritage; or

 (d) a real servitude granted for the benefit of land belonging to an entity referred to in paragraph c or d of the definition of “total gifts of qualified property” and encumbering the whole or part of land situated in a region bordering on Québec which, in the opinion of the Minister of Sustainable Development, Environment and Parks, has undeniable ecological value, the preservation and conservation of which is important to the protection and development of Québec's ecological heritage;

qualified total charitable gifts of an individual for a taxation year means

 (a) where the individual dies in the year or the subsequent taxation year, the lesser of the individual's income for the year and the total charitable gifts of the individual for the year;

 (a.1) where the individual is, in the year, a member of a religious order and has taken vows of perpetual poverty, except where paragraph a applies to the individual for the year, the lesser of the individual's income for the year and the aggregate of

(i)  the total religious order gifts of the individual for the year, and

(ii)  the lesser of the amount by which the total charitable gifts of the individual for the year exceeds the total religious order gifts of the individual for the year and the amount determined by the formula


0.75 × A + 0.25 × (B + C + D - E); and


 (b) in any other case, the least of the individual's income for the year, the total charitable gifts of the individual for the year and the amount determined by the formula


0.75 × A + 0.25 × (B + C + D - E);


qualified total major cultural gift of an individual, other than a trust, for a taxation year means

 (a) where the individual dies in the year or in the following taxation year, the lesser of the major cultural gift of the individual for the year and the individual's income for the year; and

 (b) in any other case, the lesser of the major cultural gift of the individual for the year and 75% of the individual's income for the year;

qualified total patronage gifts of an individual, other than a trust, for a taxation year means

 (a) where the individual dies in the year or in the following taxation year, the lesser of the total patronage gifts of the individual for the year and the amount by which the individual's income for the year exceeds the qualified total charitable gifts of the individual for the year; and

 (b) in any other case, the lesser of the total patronage gifts of the individual for the year and the amount by which 75% of the individual's income for the year exceeds the qualified total charitable gifts of the individual for the year;

recognized farm producer means an individual who carries on a recognized farming business or an individual who is a member of a partnership that carries on such a business;

recognized farming business means an agricultural operation registered with the Ministère de l'Agriculture, des Pêcheries et de l'Alimentation in accordance with a regulation under section 36.15 of the Act respecting the Ministère de l'Agriculture, des Pêcheries et de l'Alimentation (chapter M-14);

registered pledge means a pledge recorded by the Minister of Culture and Communications in the register created by that Minister under section 752.0.10.15.4;

total charitable gifts of an individual for a taxation year means the aggregate of all amounts each of which is the eligible amount of a gift (other than a gift described in any of the definitions of “total Crown gifts” of the individual for the year, “total cultural gifts” of the individual for the year, “total gifts of qualified property” of the individual for the year and “total musical instrument gifts” of the individual for the year, or a gift the eligible amount of which is taken into account in computing the amount deducted by the individual under section 752.0.10.6.2 for the year or for a preceding taxation year) made by the individual in the year or in any of the five preceding taxation years to a qualified donee, if the conditions set out in section 752.0.10.2 are met in respect of that amount;

total Crown gifts of an individual for a taxation year means the aggregate of all amounts each of which is the eligible amount of a gift, other than a gift described in the definition of “total cultural gifts” of the individual for the year, made by the individual before 1 April 1998 or pursuant to an obligation in writing entered into on or before 31 March 1998, in the year or in any of the five preceding taxation years to the State or to Her Majesty in right of Canada or a province, other than Québec, if the conditions set out in section 752.0.10.2 are met in respect of that amount;

total cultural gifts of an individual for a taxation year means the aggregate of all amounts each of which is the eligible amount of a gift, other than a gift the eligible amount of which is included in the total musical instrument gifts of the individual for the year, made by the individual in the year or in any of the five preceding taxation years, if the conditions set out in section 752.0.10.2 are met in respect of that amount, to

 (a) an institution or public authority referred to in subparagraph a of the third paragraph of section 232, where the object of the gift is a cultural property described in that paragraph; or

 (b) a museum established under the Act respecting the Montréal Museum of Fine Arts (chapter M-42) or the National Museums Act, a certified archival centre or a recognized museum, if the gift has as its object a cultural property described in subparagraph c of the third paragraph of section 232, unless it is also described in subparagraph a of that third paragraph;

total gifts of qualified property of an individual for a taxation year means the aggregate of all amounts each of which is the eligible amount of a gift the fair market value of which is certified by the Minister of Sustainable Development, Environment and Parks, other than a gift described in the definitions of “total Crown gifts” of the individual for the year and “total cultural gifts” of the individual for the year, made by the individual in the year or in any of the 10 preceding taxation years, if the conditions set out in section 752.0.10.2 are met in respect of that amount, to

 (a) a registered charity whose mission in Québec, at the time of the gift, consists mainly, in the opinion of the Minister of Sustainable Development, Environment and Parks, in the conservation of the ecological heritage, if the object of the gift is property referred to in paragraph a or b of the definition of “qualified property”;

 (b) the State, Her Majesty in right of Canada, a municipality in Québec or a municipal or public body performing a function of government in Québec, if the object of the gift is property referred to in paragraph a or b of the definition of “qualified property”;

 (c) a registered charity one of whose main missions, at the time of the gift, consists mainly, in the opinion of the Minister of the Environment of Canada, in the conservation and protection of Canada's environmental heritage and that is, in the opinion of the Minister of Sustainable Development, Environment and Parks, an appropriate donee in the circumstances, if the object of the gift is property referred to in paragraph c or d of the definition of “qualified property”; or

 (d) the State, Her Majesty in right of Canada or a province, other than Québec, the United States or any state of that country, a municipality or a municipal or public body performing a function of government, if the object of the gift is property referred to in paragraph c or d of the definition of “qualified property”;

total musical instrument gifts of an individual for a taxation year means the aggregate of all amounts each of which is the eligible amount of a gift the object of which is a musical instrument, made by the individual in the year or in any of the five preceding taxation years to any of the following entities, if it is situated in Québec and if the conditions set out in paragraph b of section 752.0.10.2 are met in respect of that amount:

 (a) an elementary or secondary educational institution to which the Education Act (chapter I-13.3) or the Education Act for Cree, Inuit and Naskapi Native Persons (chapter I-14) applies;

 (b) a college governed by the General and Vocational Colleges Act (chapter C-29);

 (c) a private educational institution accredited for purposes of subsidies under the Act respecting private education (chapter E-9.1);

 (d) an educational institution at the university level within the meaning of the Act respecting educational institutions at the university level (chapter E-14.1); and

 (e) an institution providing instruction in music and forming part of the network of the Conservatoire de musique et d'art dramatique du Québec;

total patronage gifts of an individual, other than a trust, for a taxation year means the aggregate of all amounts each of which is the eligible amount of a patronage gift (other than a gift the eligible amount of which was taken into account in computing the amount deducted by the individual for the year or for a preceding taxation year under section 752.0.10.6 or 752.0.10.6.1) made by the individual in the year or in any of the five preceding taxation years, if the conditions set out in section 752.0.10.2.2 are met in respect of that amount;

total religious order gifts of an individual who is a member of a religious order and has taken vows of perpetual poverty, for a taxation year, means the aggregate of all amounts each of which is the fair market value of a gift, otherwise included in the total charitable gifts of the individual for the year, that the individual made to a religious order that qualifies as a registered charity.

For the purposes of paragraphs c and d of the definition of “qualified property” in the first paragraph, a region bordering on Québec is a province or a state of the United States sharing a common border with Québec.

For the purposes of the definition of “eligible agricultural product” in the first paragraph, a processed product may be considered to be an eligible agricultural product only if the product was processed no more than to the extent necessary so that it is permitted to be legally sold, distributed or offered for sale at a place other than the place where it is produced as food or drink intended for human consumption.

For the purposes of paragraph a of the definition of “non-qualifying security” in the first paragraph, “financial institution” means a corporation that is

 (a) a member of the Canadian Payments Association; or

 (b) a savings and credit union that is a member or shareholder of a body corporate, in this Act referred to as a corporation, or organization that is a central for the purposes of the Canadian Payments Association Act (R.S.C. 1985, c. C-21).

In the formulas provided for in subparagraph ii of paragraph a.1 and paragraph b of the definition of “qualified total charitable gifts” in the first paragraph,

 (a) A is the individual's income for the year;

 (b) B is the aggregate of all amounts each of which is equal to that proportion of the individual's taxable capital gain for the year in respect of a gift made by the individual in the year and in respect of which gift an eligible amount is included in the individual's total charitable gifts for the year, that the eligible amount of the gift is of the individual's proceeds of disposition in respect of the gift;

 (c) C is the aggregate of all amounts each of which is a taxable capital gain of the individual for the year, because of the application of section 234.0.1, from the disposition of a property in a preceding taxation year;

 (d) D is the aggregate of all amounts each of which is determined in respect of the individual's depreciable property of a prescribed class and equal to the lesser of

(i)  the amount included under section 94 in respect of the class in computing the individual's income for the year, and

(ii)  the aggregate of the amounts determined in respect of a disposition that is the making of a gift of a property of the class made by the individual in the year and in respect of which gift an eligible amount is included in the individual's total charitable gifts for the year, each of which is equal to the lesser of

(1)  that proportion of the amount by which the proceeds of disposition of the property exceed any outlays made or expenses incurred by the individual for the purpose of making the disposition, that the eligible amount of the gift is of the individual's proceeds of disposition in respect of the gift, and

(2)  that proportion of the capital cost to the individual of the property that the eligible amount of the gift is of the individual's proceeds of disposition in respect of the gift; and

 (e) E is the aggregate of all amounts each of which is the portion of an amount deducted under Title VI.5 of Book IV in computing the individual's taxable income for the year that may reasonably be considered to relate to a gift referred to in paragraph b or c.

1993, c. 64, s. 67; 1994, c. 22, s. 350; 1995, c. 1, s. 73; 1995, c. 49, s. 173; 1997, c. 3, s. 71; 1997, c. 14, s. 290; 1998, c. 16, s. 251; 1999, c. 36, s. 160; 1999, c. 83, s. 90; 2000, c. 5, s. 162; 2001, c. 7, s. 169; 2003, c. 2, s. 211; 2003, c. 9, s. 77; 2004, c. 21, s. 194; 2005, c. 23, s. 94; 2006, c. 3, s. 35; 2006, c. 36, s. 65; 2009, c. 5, s. 279; 2009, c. 15, s. 137; 2010, c. 5, s. 59; 2012, c. 8, s. 114; 2015, c. 21, s. 277; 2015, c. 24, s. 101; 2015, c. 36, s. 45.

752.0.10.1.1. For the purposes of the definitions of “patronage gift” and “major cultural gift” in the first paragraph of section 752.0.10.1, where an individual, other than a trust, makes several gifts of money in a taxation year to the same eligible cultural donee, the aggregate of the gifts is deemed to be a single gift, in the year to that donee, the eligible amount of which is equal to the aggregate of all amounts each of which is the eligible amount of each of the gifts.

2015, c. 21, s. 278.

752.0.10.2. The conditions to which the definitions of “total charitable gifts”, “total Crown gifts”, “total cultural gifts”, “total gifts of qualified property” and “total musical instrument gifts” in the first paragraph of section 752.0.10.1 refer in respect of an amount for a taxation year in relation to an individual are as follows:

 (a) the amount was not deducted in computing the individual's taxable income for a taxation year ending before 1 January 1993;

 (b) the amount was not taken into account in determining an amount that was deducted under section 752.0.10.6 in computing the individual's tax payable under this Part for a preceding taxation year, or in determining an amount that was deducted under section 118.1 of the Income Tax Act (R.S.C. 1985, chapter 1 (5th Suppl.)) in computing the individual's tax payable under that Act for a preceding taxation year in respect of which the individual was not subject to tax under this Part.

1993, c. 64, s. 67; 1995, c. 1, s. 74; 1995, c. 63, s. 544; 1997, c. 14, s. 112; 2015, c. 21, s. 279.

752.0.10.2.1. The conditions to which the definition of “major cultural gift” in the first paragraph of section 752.0.10.1 refers in respect of an amount for a taxation year in relation to an individual, other than a trust, are as follows:

 (a) the amount was not taken into account in determining an amount that was deducted under section 752.0.10.6.1 in computing the individual's tax payable under this Part for a preceding taxation year; and

 (b) the amount was not taken into account in determining an amount that was deducted under section 118.1 of the Income Tax Act (R.S.C. 1985, chapter 1 (5th Suppl.)) in computing the individual's tax payable under that Act for a preceding taxation year in respect of which the individual was not subject to tax under this Part.

2015, c. 21, s. 280.

752.0.10.2.2. The conditions to which the definition of “total patronage gifts” in the first paragraph of section 752.0.10.1 refers in respect of an amount for a taxation year in relation to an individual, other than a trust, are as follows:

 (a) the amount was not taken into account in determining an amount that was deducted under section 752.0.10.6.2 in computing the individual's tax payable under this Part for a preceding taxation year; and

 (b) the amount was not taken into account in determining an amount that was deducted under section 118.1 of the Income Tax Act (R.S.C. 1985, chapter 1 (5th Suppl.)) in computing the individual's tax payable under that Act for a preceding taxation year in respect of which the individual was not subject to tax under this Part.

2015, c. 21, s. 280.

752.0.10.3. The amount that is the eligible amount of a gift may not be considered to be a major cultural gift for a taxation year or included in the total charitable gifts, total Crown gifts, total cultural gifts, total gifts of qualified property, total musical instrument gifts or total patronage gifts of an individual for a taxation year, unless the making of the gift is proven by

 (a) a receipt for the gift filed with the Minister that meets the prescribed requirement and contains in a clear and unalterable manner the prescribed statement and the prescribed information; and

 (b) in the case of a gift described in paragraph a of the definition of total cultural gifts in the first paragraph of section 752.0.10.1, the certificate issued under subsection 1 of section 33 of the Cultural Property Export and Import Act (R.S.C. 1985, c. C-51).

If a patronage gift is made in satisfaction of a pledge made by an individual, the amount that is the eligible amount of the gift may not be included in the total patronage gifts of the individual for a taxation year unless the individual provides the registration number of the pledge.

1993, c. 64, s. 67; 1994, c. 22, s. 258; 1995, c. 1, s. 75; 1995, c. 49, s. 236; 2003, c. 2, s. 212; 2006, c. 36, s. 66; 2009, c. 5, s. 280; 2015, c. 21, s. 281.

752.0.10.3.1. An organization or a donee shall meet the prescribed requirements in respect of a spoiled receipt form.

For the purposes of the first paragraph, donee, receipt form and organization have the meanings assigned by the regulations under section 752.0.10.3.

1994, c. 22, s. 259.

752.0.10.3.2. For the purpose of applying subparagraph ii of paragraph c of section 422, section 436 and this chapter in respect of a gift made by an individual the subject of which is a qualified property, the fair market value of the gift at the time the gift was made or, for the purposes of section 752.0.10.12, the fair market value otherwise determined of the gift at that time and, subject to section 752.0.10.12, the individual’s proceeds of disposition of the property that is the subject of the gift, are deemed to be equal to the amount determined by the Minister of Sustainable Development, Environment and Parks to be

 (a)  where the subject of the gift is land, the fair market value of the gift; or

 (b)  where the subject of the gift is a servitude referred to in paragraph b or d of the definition of qualified property in the first paragraph of section 752.0.10.1, the greater of its fair market value otherwise determined and the amount by which the fair market value of the land encumbered by the servitude has been reduced as a result of the making of the gift of the servitude.

1999, c. 83, s. 91; 2003, c. 2, s. 213; 2003, c. 9, s. 78; 2006, c. 3, s. 35.

752.0.10.4. For the purposes of the definition of total cultural gifts in the first paragraph of section 752.0.10.1,

 (a) the fair market value of a cultural property described in subparagraph a of the third paragraph of section 232 is deemed to be the value determined by the Canadian Cultural Property Export Review Board or, where an appeal has been instituted under subsection 1 of section 33.1 of the Cultural Property Export and Import Act (R.S.C. 1985, c. C-51), the fair market value deemed to have been determined by the Board, for the purposes of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)), under subsection 2 of that section 33.1; and

 (b) the fair market value of a cultural property described in subparagraph c of the third paragraph of section 232 is deemed to be the value determined by the Conseil du patrimoine culturel du Québec.

1993, c. 64, s. 67; 1997, c. 85, s. 126; 2003, c. 9, s. 79; 2005, c. 23, s. 95; 2011, c. 21, s. 232.

752.0.10.4.0.1. For the purposes of subparagraph ii of paragraph c of section 422, section 436 and this chapter, where at any time the Canadian Cultural Property Export Review Board or the Minister of Sustainable Development, Environment and Parks, as the case may be, determines or redetermines an amount to be the fair market value of a property that is the subject of a gift described in the definition of total charitable gifts in the first paragraph of section 752.0.10.1 made by a taxpayer within the two-year period that begins at that time, the last amount so determined or redetermined within the period is deemed to be the fair market value of the property at the time the gift was made and, subject to sections 752.0.10.12, 752.0.10.13 and 752.0.10.14, to be the taxpayer's proceeds of disposition of the property.

2001, c. 53, s. 114; 2003, c. 2, s. 214; 2006, c. 3, s. 35; 2011, c. 21, s. 232; 2015, c. 21, s. 282.

752.0.10.4.0.1.1. Despite section 752.0.10.4.0.1, for the purposes of paragraph a of section 422, subparagraph ii of paragraph c of that section, section 436 and this chapter, where the Minister of Culture and Communications determines an amount to be the fair market value of a property that is the subject of a gift made by an individual on or before the day that is two years after the time that amount is determined and referred to in the definition of “total charitable gifts” in the first paragraph of section 752.0.10.1, the following rules apply:

 (a) the amount so determined is deemed to be the fair market value of the property at the time of the gift or, for the purposes of sections 752.0.10.12 and 752.0.10.13, its fair market value otherwise determined at that time; and

 (b) subject to sections 752.0.10.12 and 752.0.10.13, the amount so determined is deemed to be the individual's proceeds of disposition of the property.

2015, c. 21, s. 283.

752.0.10.4.0.2. An individual may request by notice in writing to the Minister of Sustainable Development, Environment and Parks a determination of the fair market value of a property the individual disposes of or proposes to dispose of and that would, if the disposition were made and the certificates described in section 752.0.10.7.1 were issued by the Minister of Sustainable Development, Environment and Parks in respect of the property, be a gift described in the definition of total gifts of qualified property in the first paragraph of section 752.0.10.1.

2003, c. 2, s. 215; 2006, c. 3, s. 35.

752.0.10.4.0.3. The Minister of Sustainable Development, Environment and Parks shall with all due dispatch make a determination in accordance with section 752.0.10.3.2 of the fair market value of the property that is the subject of the request referred to in section 752.0.10.4.0.2 and give notice of the determination in writing to the individual who has disposed of, or who proposes to dispose of, the property.

However, no such determination shall be made if the request is received by the Minister of Sustainable Development, Environment and Parks after three years after the end of the individual’s taxation year in which the disposition occurred.

2003, c. 2, s. 215; 2006, c. 3, s. 35.

752.0.10.4.0.4. Where the Minister of Sustainable Development, Environment and Parks has, in accordance with section 752.0.10.4.0.3, notified an individual of the amount determined to be the fair market value of a property the individual has disposed of or proposes to dispose of, the following rules apply:

 (a) on receipt of a written request made by the individual on or before the day that is 90 days after the day that the individual was so notified, the Minister of Sustainable Development, Environment and Parks shall with all due dispatch confirm or redetermine the fair market value;

 (b) the Minister of Sustainable Development, Environment and Parks may, on that Minister’s own initiative, at any time redetermine the fair market value;

 (c) in the cases referred to in paragraphs a and b, the Minister of Sustainable Development, Environment and Parks shall notify the individual in writing of that Minister’s confirmation or redetermination; and

 (d) any such redetermination is deemed to replace all preceding determinations and redeterminations of the fair market value of the property from the time at which the first such determination was made.

2003, c. 2, s. 215; 2006, c. 3, s. 35.

752.0.10.4.0.5. Where the Minister of Sustainable Development, Environment and Parks determines in accordance with section 752.0.10.4.0.3 the fair market value of a property, or redetermines that fair market value in accordance with section 752.0.10.4.0.4, and the property has been disposed of to a qualified donee described in the definition of total gifts of qualified property in the first paragraph of section 752.0.10.1, the Minister shall issue to the individual who made the disposition a certificate that states the fair market value of the property so determined or redetermined.

Where the Minister of Sustainable Development, Environment and Parks has issued more than one certificate in respect of the same property, the last certificate is deemed to replace all preceding certificates from the time at which the first certificate was issued.

2003, c. 2, s. 215; 2006, c. 3, s. 35.

752.0.10.4.0.6. An individual may request, by notice in writing to the Minister of Culture and Communications, a determination of the fair market value of a property (other than a cultural property described in the third paragraph of section 232) the individual disposes of or proposes to dispose of and that would, if the disposition were made and the documents referred to in section 752.0.10.15.3 were issued by the Minister of Culture and Communications in respect of the property, be a gift described in subparagraph b of the second paragraph of section 752.0.10.15.1 or in section 752.0.10.15.2.

2015, c. 21, s. 284.

752.0.10.4.0.7. The Minister of Culture and Communications shall with all due dispatch make a determination of the fair market value of a property that is the subject of a request referred to in section 752.0.10.4.0.6 and give notice of the determination in writing to the individual who has disposed of, or who proposes to dispose of, the property.

However, no such determination is made if the request is received by the Minister of Culture and Communications more than three years after the end of the individual's taxation year in which the disposition occurred.

2015, c. 21, s. 284.

752.0.10.4.0.8. Where the Minister of Culture and Communications has, in accordance with section 752.0.10.4.0.7, notified an individual of the amount determined to be the fair market value of a property the individual has disposed of or proposes to dispose of, the following rules apply:

 (a) on receipt of a written request made by the individual on or before the day that is 90 days after the day that the individual was so notified, the Minister of Culture and Communications shall with all due dispatch confirm or redetermine the fair market value;

 (b) the Minister of Culture and Communications may, on that Minister's own initiative, at any time redetermine the fair market value;

 (c) in the cases referred to in paragraphs a and b, the Minister of Culture and Communications shall notify the individual in writing of the confirmation or redetermination; and

 (d) any such redetermination is deemed to replace all preceding determinations and redeterminations of the fair market value of the property from the time at which the first such determination was made.

2015, c. 21, s. 284.

752.0.10.4.0.9. Where the Minister of Culture and Communications determines the fair market value of a property in accordance with section 752.0.10.4.0.7, or redetermines that fair market value in accordance with section 752.0.10.4.0.8, and the property has been the subject of a gift described in subparagraph b of the second paragraph of section 752.0.10.15.1 or in section 752.0.10.15.2, that Minister shall issue to the individual who made the disposition a certificate that states the fair market value of the property so determined or redetermined and send a copy of that certificate to the donee and the Minister.

Where the Minister of Culture and Communications has issued more than one certificate in respect of the same property, the last certificate is deemed to replace all preceding certificates from the time at which the first certificate was issued.

2015, c. 21, s. 284.

752.0.10.4.1. Notwithstanding sections 1010 to 1011, the Minister shall make such assessments, reassessments or additional assessments of tax, interest or penalties payable under this Part for any taxation year as are necessary to give effect

 (a) to a certificate issued under section 105 of the Cultural Heritage Act (chapter P-9.002) or to a decision of a court resulting from an appeal under section 107 of that Act;

 (b) to a certificate issued under subsection 1 of section 33 of the Cultural Property Export and Import Act (R.S.C. 1985, c. C-51) or to a decision of a court resulting from an appeal under subsection 1 of section 33.1 of that Act; or

 (c) to a certificate issued under section 752.0.10.4.0.5 or 752.0.10.4.0.9 or to a decision of a court resulting from an appeal under section 93.1.15.2 or 93.1.15.3 of the Tax Administration Act (chapter A-6.002).

1997, c. 85, s. 127; 2003, c. 2, s. 216; 2010, c. 31, s. 175; 2011, c. 21, s. 233; 2015, c. 21, s. 285.

752.0.10.4.2. For the purposes of this chapter, the following rules apply:

 (a) the gift of the bare ownership of a work of art or a cultural property described in the third paragraph of section 232 and made in the course of a recognized gift with reserve of usufruct or use is deemed to be, subject to section 752.0.10.11.1, the gift of a work of art or of such a cultural property; and

 (b) the fair market value of a recognized gift with reserve of usufruct or use, in relation to a work of art or a cultural property described in the third paragraph of section 232, is deemed to be equal to the product obtained by multiplying the amount of the fair market value of the work of art or of the cultural property, as the case may be, otherwise determined with reference to sections 752.0.10.4, 752.0.10.4.0.1, 752.0.10.4.0.1.1, 752.0.10.11.2 and 752.0.10.18 by the appropriate percentage determined in section 752.0.10.4.3.

2003, c. 9, s. 80; 2015, c. 21, s. 286.

752.0.10.4.3. The percentage to which section 752.0.10.4.2 refers, in respect of a recognized gift with reserve of usufruct or use is

 (a) where the usufruct or right of use is established for the lifetime of the individual who made the gift,

(i)  25% where the individual is under 25 years of age,

(ii)  31% where the individual is at least 25 years of age and under 30 years of age,

(iii)  38% where the individual is at least 30 years of age and under 35 years of age,

(iv)  44% where the individual is at least 35 years of age and under 40 years of age,

(v)  50% where the individual is at least 40 years of age and under 45 years of age,

(vi)  56% where the individual is at least 45 years of age and under 50 years of age,

(vii)  62% where the individual is at least 50 years of age and under 55 years of age,

(viii)  68% where the individual is at least 55 years of age and under 60 years of age,

(ix)  73% where the individual is at least 60 years of age and under 65 years of age,

(x)  78% where the individual is at least 65 years of age and under 70 years of age,

(xi)  83% where the individual is at least 70 years of age and under 75 years of age,

(xii)  87% where the individual is at least 75 years of age and under 80 years of age, and

(xiii)  91% where the individual is at least 80 years of age; and

 (b) where the usufruct or right of use is established for a fixed duration regardless of the lifetime of the individual who made the gift,

(i)  87% where the fixed duration is of 10 years or less,

(ii)  74% where the fixed duration is of 10 years or more and 20 years or less, and

(iii)   61% in any other case.

2003, c. 9, s. 80.

752.0.10.5. For the purposes of the definition of “total charitable gifts” in the first paragraph of section 752.0.10.1, where, throughout a taxation year, an individual resides in Canada near the boundary between Canada and the United States and where, in that year, the individual makes a gift to a prescribed religious, scientific, literary, educational or charitable organization created or organized in or under the laws of the United States that would be deductible under the United States Internal Revenue Code of 1986, as amended from time to time, he is deemed to have made the gift to a registered charity, if he commutes regularly between his residence and his principal place of employment or business in the United States, and his chief source of income for the year is that employment or business.

1993, c. 64, s. 67; 1994, c. 22, s. 260; 1995, c. 49, s. 236; 2005, c. 23, s. 96; 2009, c. 15, s. 138.

752.0.10.5.1. For the purpose of determining the total charitable gifts, total Crown gifts, total cultural gifts, total gifts of qualified property and total musical instrument gifts, no amount in respect of a gift described in any of the definitions of those expressions in the first paragraph of section 752.0.10.1 and made in a particular taxation year by an individual shall be taken into account in determining an amount that is deducted under section 752.0.10.6 in computing the tax payable under this Part by the individual for a taxation year until amounts in respect of such gifts made in taxation years preceding the particular year that can be so taken into account are so taken into account.

1999, c. 83, s. 92; 2006, c. 36, s. 67.

752.0.10.5.2. For the purpose of determining the total patronage gifts, no amount in respect of a patronage gift made in a particular taxation year by an individual may be taken into account in determining an amount that is deducted under section 752.0.10.6.2 in computing the tax payable under this Part by the individual for a taxation year until all amounts in respect of such a gift made in a taxation year preceding the particular year that can be so taken into account are so taken into account.

2015, c. 21, s. 287.

752.0.10.6. An individual may deduct from the individual’s tax otherwise payable for a taxation year under this Part, an amount equal to

 (a) for the taxation year 2000, any of the following amounts:

(i)  where the aggregate determined under the second paragraph does not exceed $2,000, 22% of that aggregate,

(ii)  in any other case, the aggregate of $440 and 25% of the amount by which the aggregate determined under the second paragraph exceeds $2,000;

 (b) for the taxation year 2001, any of the following amounts:

(i)  where the aggregate determined under the second paragraph does not exceed $2,000, 20.75% of that aggregate,

(ii)  in any other case, the aggregate of $415 and 24.5% of the amount by which the aggregate determined under the second paragraph exceeds $2,000;

 (c) for the taxation years 2002 to 2005, any of the following amounts:

(i)  where the aggregate determined under the second paragraph does not exceed $2,000, 20% of that aggregate,

(ii)  in any other case, the aggregate of $400 and 24% of the amount by which the aggregate determined under the second paragraph exceeds $2,000;

 (d) from the taxation year 2006, any of the following amounts:

(i)  where the aggregate determined under the second paragraph does not exceed $200, 20% of that aggregate,

(ii)  in any other case, the aggregate of $40 and 24% of the amount by which the aggregate determined under the second paragraph exceeds $200.

The aggregate to which the first paragraph refers is the aggregate of

 (a) the individual’s total Crown gifts for the year;

 (b) the individual’s total gifts of qualified property for the year;

 (c) the individual’s total cultural gifts for the year;

 (d) the individual’s qualified total charitable gifts for the year; and

 (e) the individual's total musical instrument gifts for the year.

1993, c. 64, s. 67; 1995, c. 1, s. 76; 1995, c. 49, s. 236; 1997, c. 85, s. 128; 1999, c. 83, s. 93; 2001, c. 51, s. 52; 2006, c. 36, s. 68.

752.0.10.6.1. An individual, other than a trust, may deduct from the individual's tax otherwise payable for a taxation year under this Part an amount equal to 25% of the qualified total major cultural gift of the individual for the year.

No individual may benefit from the deduction provided for in the first paragraph for more than one major cultural gift.

2015, c. 21, s. 288.

752.0.10.6.2. An individual, other than a trust, may deduct from the individual's tax otherwise payable for a taxation year under this Part an amount equal to 30% of the qualified total patronage gifts of the individual for the year.

2015, c. 21, s. 288.

752.0.10.7. No individual may deduct, for a taxation year, an amount under section 752.0.10.6 in respect of a gift of a property referred to in paragraph b of the definition of total cultural gifts in the first paragraph of section 752.0.10.1 unless the individual files with the Minister, together with the fiscal return the individual is required to file under section 1000 for the year, a certificate issued by the Conseil du patrimoine culturel du Québec stating that the property was acquired by a museum established under the Act respecting the Montréal Museum of Fine Arts (chapter M-42) or the National Museums Act (chapter M-44), a certified archival centre or a recognized museum, in accordance with its acquisition and conservation policy and with the directives of the Ministère de la Culture et des Communications, and specifying the fair market value of the property determined in accordance with section 752.0.10.4 and, if applicable, section 752.0.10.4.2.

1993, c. 64, s. 67; 1995, c. 1, s. 199; 1996, c. 39, s. 273; 2003, c. 9, s. 81; 2005, c. 23, s. 97; 2006, c. 36, s. 69; 2011, c. 1, s. 39; 2011, c. 21, s. 232.

752.0.10.7.1. No individual may deduct, for a taxation year, an amount under section 752.0.10.6 in respect of a gift of a qualified property unless the individual files with the Minister, along with the fiscal return referred to in section 1000 the individual is required to file for the year, the following certificates issued by the Minister of Sustainable Development, Environment and Parks:

 (a) the certificate certifying that

(i)  in the case of a gift whose object is a property described in paragraph a or b of the definition of qualified property in the first paragraph of section 752.0.10.1, the land referred to in that paragraph a or the land encumbered with a servitude referred to in that paragraph b, as the case may be, has undeniable ecological value and, where such is the case, that the mission in Québec of a charity referred to in paragraph a of the definition of total gifts of qualified property in the first paragraph of section 752.0.10.1 consists mainly, at the time of the gift, in the conservation of the ecological heritage, and

(ii)  in the case of a gift whose object is a property described in paragraph c or d of the definition of qualified property in the first paragraph of section 752.0.10.1, the land referred to in that paragraph c or the land encumbered with a servitude referred to in that paragraph d, as the case may be, has undeniable ecological value, the preservation and conservation of which is important to the protection and development of Québec’s ecological heritage and, where such is the case, that a charity referred to in paragraph c of the definition of total gifts of qualified property in the first paragraph of section 752.0.10.1 is an appropriate donee in the circumstances; and

 (b) the certificate relating to the fair market value of a gift to which the definition of total gifts of qualified property in the first paragraph of section 752.0.10.1 refers.

1995, c. 1, s. 77; 1999, c. 36, s. 160; 2003, c. 2, s. 217; 2003, c. 9, s. 82; 2006, c. 3, s. 35; 2010, c. 25, s. 72.

752.0.10.8. No individual may deduct, for a taxation year, an amount under section 752.0.10.6 in respect of a gift, after 18 December 1990, of property that is a certified Québec film or a Québec film production, within the meaning assigned to those terms by the regulations under section 130, if the gift is made by him within a period of three years commencing on the day on which the property is acquired by him.

1993, c. 64, s. 67.

752.0.10.9. Subject to section 752.0.10.16, a gift made by an individual in the taxation year in which the individual dies and in respect of which there may be deducted an amount in computing the individual's tax payable for that taxation year under any of sections 752.0.10.6 to 752.0.10.6.2 (in this section referred to as the “particular provision”), including a gift deemed by any of sections 752.0.10.10, 752.0.10.10.1, 752.0.10.10.3, 752.0.10.10.5, 752.0.10.13, 752.0.10.14 and 752.0.10.16 to have been so made, is deemed, for the purposes of the particular provision, to have been made by the individual in the preceding taxation year to the extent that an amount in respect of the gift is not deducted under the particular provision for the taxation year in which the individual dies.

1993, c. 64, s. 67; 1999, c. 83, s. 94; 2003, c. 2, s. 218; 2015, c. 21, s. 289.

752.0.10.10. Subject to section 752.0.10.16, where an individual by the individual's will makes a gift to a donee referred to in the first paragraph of section 752.0.10.1, the gift is deemed, for the purposes of this chapter, to have been made by the individual immediately before the individual's death.

1993, c. 64, s. 67; 1999, c. 83, s. 94.

752.0.10.10.1. If, but for this section, an individual would be deemed under section 752.0.10.16 to have made a gift after the individual's death, for the purposes of this chapter the individual is deemed to have made the gift in the taxation year in which the individual died.

Any amount of interest payable under this Act must be determined as if the presumption provided in the first paragraph did not apply.

1999, c. 83, s. 95.

752.0.10.10.2. Section 752.0.10.10.3 applies to an individual in respect of a life insurance policy where

 (a) the policy is a life insurance policy under which, immediately before the individual’s death, the individual’s life was insured;

 (b) a transfer of money, or a transfer by means of a negotiable instrument, is made by reason of the individual’s death and solely because of the obligations under the policy, from an insurer to a qualified donee, other than a transfer the amount of which is not included in computing the income of the individual or the individual’s succession for any taxation year but would have been included, but for section 430, in computing the income of the individual or the individual’s succession for a taxation year if the transfer had been made to the individual’s legal representative for the benefit of the individual’s succession;

 (c) immediately before the individual’s death, the individual’s consent would have been required to change the recipient of the transfer described in paragraph b and the donee was neither a policyholder under the policy, nor an assignee of the individual’s interest under the policy; and

 (d) the transfer occurs within the 36-month period that begins at the time of the death of the individual or, where written application to extend the period has been made to the Minister by the individual’s legal representative, within such longer period as the Minister considers reasonable in the circumstances.

2003, c. 2, s. 219.

752.0.10.10.3. Where this section applies to an individual, in respect of an insurance policy, by reason of section 752.0.10.10.2,

 (a) for the purposes of this chapter, except section 752.0.10.10.2, and of sections 985.1 to 985.22, 985.23.1 to 985.23.7, 985.23.9, 985.23.10, 985.24, 985.25 and 999.2, the transfer referred to in section 752.0.10.10.2 is deemed to be a gift made immediately before the individual's death by the individual to the qualified donee referred to in section 752.0.10.10.2; and

 (b) the fair market value of the gift is deemed to be the fair market value, at the time of the individual's death, of the right to that transfer, determined without reference to any risk of default with regard to obligations of the insurer.

2003, c. 2, s. 219; 2005, c. 38, s. 143; 2009, c. 15, s. 139; 2012, c. 8, s. 115.

752.0.10.10.4. The rules set out in section 752.0.10.10.5 apply to an individual, in respect of an arrangement that is a registered retirement savings plan or a registered retirement income fund, or that was, immediately before the individual's death, a tax-free savings account, if

 (a) by reason of the individual's death, a transfer of money, or a transfer by means of a negotiable instrument, is made, from the arrangement (other than an arrangement of which a licensed annuities provider is the issuer or carrier) to a qualified donee, solely because of the donee's right or interest as a beneficiary under the arrangement;

 (b) immediately before the individual's death, the individual was the annuitant or holder under the arrangement; and

 (c) the transfer occurs within the 36-month period that begins at the time of the death of the individual or, where written application to extend the period has been made to the Minister by the individual's legal representative, within such longer period as the Minister considers reasonable in the circumstances.

2003, c. 2, s. 219; 2009, c. 15, s. 140; 2010, c. 5, s. 60.

752.0.10.10.5. The rules to which section 752.0.10.10.4 refers in respect of an individual are as follows:

 (a) for the purposes of this chapter, except section 752.0.10.10.4, and of sections 985.1 to 985.22, 985.23.1 to 985.23.7, 985.23.9, 985.23.10, 985.24, 985.25 and 999.2, the transfer referred to in section 752.0.10.10.4 is deemed to be a gift made immediately before the individual's death by the individual to the qualified donee referred to in section 752.0.10.10.4; and

 (b) the fair market value of the gift is deemed to be equal to the fair market value, at the time of the individual's death, of the right to the transfer, determined without reference to any risk of default with regard to the obligations of the issuer of the arrangement described in section 752.0.10.10.4.

2003, c. 2, s. 219; 2005, c. 38, s. 144; 2009, c. 15, s. 141; 2012, c. 8, s. 116.

752.0.10.11. For the purposes of this chapter, where an individual is, at the end of a fiscal period of a partnership, a member of the partnership, the eligible amount of a gift made in the name of the partnership is deemed to be the eligible amount of a gift made by the individual in the individual's taxation year in which the fiscal period of the partnership ends, up to the proportion of his share in that partnership.

For the purposes of the first paragraph, the following rules apply to an individual if one or more partnerships (each of which is in this paragraph referred to as an “interposed partnership”) are interposed between the individual and a given partnership, for a given fiscal period of the given partnership:

 (a) the individual is deemed to be a member of a particular partnership at the end of a particular fiscal period of the particular partnership and that particular fiscal period is deemed to end in the individual's taxation year in which ends the fiscal period of the interposed partnership of which the individual is directly a member, if

(i)  the particular fiscal period is that which ends in the fiscal period (in this section referred to as the “interposed fiscal period”) of the interposed partnership that is a member of the particular partnership at the end of that particular fiscal period, and

(ii)  the individual is a member, or deemed to be a member under this subparagraph a, of the interposed partnership described in subparagraph i at the end of the interposed partnership's interposed fiscal period; and

 (b) the proportion of the individual's share in the given partnership for the given fiscal period is deemed to be equal to the product obtained by multiplying the proportion of the individual's share in the interposed partnership of which the individual is directly a member for the interposed partnership's interposed fiscal period, by

(i)  if there is only one interposed partnership, the proportion of the interposed partnership's share in the given partnership for the given fiscal period, or

(ii)  if there is more than one interposed partnership, the result obtained by multiplying together all proportions each of which is the proportion of an interposed partnership's share in the particular partnership referred to in subparagraph a of which the interposed partnership is a member for the particular partnership's particular fiscal period.

The rule set out in the second paragraph does not apply in respect of an individual, in relation to a given partnership, if the Minister is of the opinion that the interposition, between the individual and the given partnership, of one or more other partnerships is part of an operation or transaction or of a series of operations or transactions, one of the purposes of which is to cause the eligible amount of a gift that is attributed to the individual under the first paragraph for a taxation year to be greater than the amount that would have been so attributed to the individual for that taxation year, but for that interposition.

1993, c. 64, s. 67; 1997, c. 3, s. 71; 2009, c. 5, s. 281; 2009, c. 15, s. 142.

752.0.10.11.1. For the purposes of this chapter, if at any time an individual makes a gift of a work of art described in the second paragraph to a donee referred to in any of paragraphs b to e and g to j of the definition of qualified donee in section 999.2 or in any of subparagraphs i, iv and v of paragraph a of the definition of qualified donee in subsection 1 of section 149.1 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) and whose registration as a qualified donee has not been revoked by the Minister of National Revenue, other than such a donee who acquires the work of art in connection with its primary mission, the individual is deemed, in respect of that work of art, not to have made a gift unless the donee disposes of the work of art on or before 31 December of the fifth year following the year that includes that time.

The work of art to which the first paragraph refers is a print, an etching, a drawing, a painting, a sculpture or any work of a similar nature, a tapestry or hand-woven carpet or hand-made appliqué, a lithograph, a rare folio, a rare manuscript or a rare book, a stamp or a coin.

This section does not apply if an individual makes a gift of a work of art referred to in section 752.0.10.15.2 to a donee referred to in subparagraph c of the second paragraph of that section.

1995, c. 63, s. 57; 2004, c. 21, s. 195; 2005, c. 23, s. 98; 2006, c. 36, s. 70; 2012, c. 8, s. 117; 2013, c. 10, s. 52; 2015, c. 21, s. 290.

752.0.10.11.2. If, at any given time, an individual makes a gift of a work of art referred to in section 752.0.10.11.1 to a donee referred to in that section, the lesser of the amount that may reasonably be considered as the consideration for the disposition by the donee of the work of art and its fair market value at the time of the disposition, is deemed, for the purposes of the definition of “total charitable gifts” in the first paragraph of section 752.0.10.1, to be the fair market value for the purpose of computing the eligible amount of the gift at the given time, for the purposes of section 752.0.10.12, to be the fair market value of the capital property at the given time and, for the purposes of section 752.0.10.13, to be the fair market value of the work of art at the given time.

1995, c. 63, s. 57; 2005, c. 23, s. 99; 2009, c. 5, s. 282.

752.0.10.12. The rule set out in the second paragraph applies if, at any time, an individual makes a gift of a capital property to a qualified donee or, if the individual is not resident in Canada, a gift of an immovable property situated in Canada to a prescribed donee who provides an undertaking, in a form satisfactory to the Minister, to the effect that the property will be held for use in the public interest, the individual or the individual's legal representative designates, after 19 December 2006 and in accordance with subsection 6 of section 118.1 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)), an amount in respect of the gift, and, at that time, the fair market value of the capital property or immovable property exceeds

 (a) in the case of a depreciable property of a prescribed class, the lesser of the undepreciated capital cost of that class at the end of the taxation year of the individual that includes that time, determined without reference to the proceeds of disposition determined in respect of the property under the second paragraph, and the adjusted cost base to the individual of the property immediately before that time; and

 (b) in any other case, the adjusted cost base to the individual of the capital property or immovable property immediately before that time.

The lesser of the fair market value of the capital property or immovable property otherwise determined and the greatest of the following amounts, is deemed to be both the individual's proceeds of disposition of the capital property or immovable property and, for the purposes of section 7.21, the fair market value of the gift:

 (a) in the case of a gift made after 20 December 2002, the amount of the advantage in respect of the gift;

 (b) the amount determined under subparagraph a or b of the first paragraph in respect of the capital property or immovable property; and

 (c) the amount designated in respect of the gift in accordance with subsection 6 of section 118.1 of the Income Tax Act.

Chapter V.2 of Title II of Book I applies in relation to a designation made under subsection 6 of section 118.1 of the Income Tax Act or in relation to a designation made under this section before 20 December 2006.

1993, c. 64, s. 67; 1994, c. 22, s. 261; 1995, c. 1, s. 78; 1995, c. 49, s. 236; 2003, c. 2, s. 220; 2005, c. 23, s. 100; 2009, c. 5, s. 283; 2012, c. 8, s. 118.

752.0.10.13. Subject to section 752.0.10.14, where at any time an individual makes a gift, described in either of the definitions of total Crown gifts and total charitable gifts in the first paragraph of section 752.0.10.1, of a work of art created by the individual that is property in the individual's inventory, or acquired under circumstances where section 430 applied, and at that time the fair market value of the work of art exceeds its cost amount to the individual, the following rules apply:

 (a) where the gift is made by reason of the death of the individual, the gift is deemed to have been made immediately before the death; and

 (b) if the individual or the individual's legal representative designates, after 19 December 2006 and in accordance with subsection 7 of section 118.1 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)), an amount in respect of the gift, the lesser of the fair market value of the work of art otherwise determined and the greatest of the amount of the advantage in respect of the gift, the cost amount to the individual of the work of art and the amount designated in respect of the gift in accordance with that subsection 7 is deemed to be both the individual's proceeds of disposition of the work of art and, for the purposes of section 7.21, the fair market value of the gift.

Chapter V.2 of Title II of Book I applies in relation to a designation made under subsection 7 of section 118.1 of the Income Tax Act or in relation to a designation made under this section before 20 December 2006.

1993, c. 64, s. 67; 1995, c. 49, s. 236; 2003, c. 2, s. 221; 2009, c. 5, s. 284.

752.0.10.14. Where at any time an individual makes a gift, after 31 December 1990, of a work of art that is a cultural property described in section 232 created by the individual and that is property in the individual's inventory, or was acquired by the individual under circumstances where section 430 applied, and at that time the fair market value of the work of art exceeds its cost amount to the individual, the following rules apply:

 (a) where the gift is made by reason of the death of the individual, the gift is deemed to have been made immediately before the death; and

 (b) the individual is deemed to have received, at that time, proceeds of disposition equal to the greater of the cost amount to the individual of the work of art at that time and the amount of the advantage in respect of the gift.

1993, c. 64, s. 67; 2003, c. 2, s. 221; 2009, c. 5, s. 285.

752.0.10.15. Where an individual makes a gift of a work of art referred to in section 752.0.10.11.1 in a taxation year, referred to in this section as the gift year, to a donee referred to in section 752.0.10.11.1, the individual may, on or before his filing-due date for a subsequent taxation year, referred to in this section as the year of disposition, in which the donee disposed of the work of art, file with the Minister for a taxation year referred to in the second paragraph an amended fiscal return in which he shall take into account the tax consequences of that disposition in respect of an amount relating to that taxation year.

The taxation year to which the first paragraph refers is a taxation year of the individual for which he filed a fiscal return pursuant to section 1000 and that is previous to the year of disposition but after the fourth taxation year of the individual that precedes the gift year.

Notwithstanding sections 1010 to 1011, the Minister shall, where the individual has filed an amended fiscal return in accordance with the first paragraph, make such assessment, reassessment or additional assessment of the tax, interest and penalties payable by the individual under this Part as is necessary for any taxation year to give effect to the disposition referred to in the first paragraph.

For the purposes of the third paragraph, where the taxation year referred to therein is before the taxation year 1998, that paragraph shall be read with the words “and Part I.1” inserted after the words “this Part”.

1995, c. 63, s. 58; 1997, c. 31, s. 79; 1997, c. 85, s. 129.

752.0.10.15.1. For the purposes of the definition of “total charitable gifts” of an individual for a taxation year and of “total cultural gifts” of an individual for a taxation year in the first paragraph of section 752.0.10.1, the eligible amount of a gift described in the second paragraph is to be increased by 1/4 of that amount.

The gift to which the first paragraph refers is

 (a) a gift of a work of art to a Québec museum; or

 (b) any of the following gifts if the fair market value of the property that is the subject of the gift is determined under any of sections 752.0.10.4, 752.0.10.4.0.1 and 752.0.10.4.0.1.1:

(i)  unless it is described in subparagraph a, a gift of a work of public art that meets the following conditions:

(1)  it is made to the State, except an educational institution that is a mandatary of the State, or

(2)  a certificate has been issued by the Minister of Culture and Communications in respect of the work for the purposes of this section,

(ii)  a gift of an eligible immovable if a qualification certificate has been issued by the Minister of Culture and Communications in respect of the building for the purposes of this section, or

(iii)  a gift of an eligible immovable to any of the following entities that acquires the building with a view to carrying on all or part of its activities in it:

(1)  a registered charity operating in Québec in the field of arts or culture,

(2)  a registered cultural or communications organization, or

(3)  a registered museum.

For the purposes of subparagraphs ii and iii of subparagraph b of the second paragraph, an eligible immovable means a building situated in Québec, including the land subjacent to it and such portion of any contiguous land as can reasonably be regarded as contributing to the use and enjoyment of the building.

2001, c. 51, s. 53; 2005, c. 23, s. 101; 2009, c. 5, s. 286; 2015, c. 21, s. 291.

752.0.10.15.2. For the purposes of the definition of “total charitable gifts” of an individual for a taxation year and of “total cultural gifts” of an individual for a taxation year in the first paragraph of section 752.0.10.1, the eligible amount of a gift of a work of public art described in the second paragraph is to be increased by 1/2 of that amount if the fair market value of the work is determined under any of sections 752.0.10.4, 752.0.10.4.0.1 and 752.0.10.4.0.1.1.

The gift to which the first paragraph refers is the gift of a work of public art in respect of which a certificate has been issued by the Minister of Culture and Communications for the purposes of this section and that is made to

 (a) an educational institution that is a mandatary of the State;

 (b) a school board governed by the Education Act (chapter I-13.3) or the Education Act for Cree, Inuit and Naskapi Native Persons (chapter I-14); or

 (c) a registered charity whose mission is teaching and that is

(i)  an educational institution established under an Act of the Parliament of Québec, other than an institution described in subparagraph a,

(ii)  a college governed by the General and Vocational Colleges Act (chapter C-29),

(iii)  a private educational institution accredited for subsidies purposes under the Act respecting private education (chapter E-9.1), or

(iv)  a university-level educational institution referred to in any of paragraphs 1 to 11 of section 1 of the Act respecting educational institutions at the university level (chapter E-14.1).

2015, c. 21, s. 292.

752.0.10.15.3. No individual is entitled to an increase of the eligible amount of a gift for a taxation year, in relation to a gift described in subparagraph b of the second paragraph of section 752.0.10.15.1 or in section 752.0.10.15.2, unless the individual files with the Minister, together with the fiscal return the individual is required to file under section 1000 for the year, the following documents issued by the Minister of Culture and Communications:

 (a) in relation to a gift of a work of public art,

(i)  in respect of which subparagraph 1 of subparagraph i of subparagraph b of the second paragraph of section 752.0.10.15.1 applies, a copy of any certificate relating to the fair market value of the work, or

(ii)  in respect of which subparagraph 2 of subparagraph i of subparagraph b of the second paragraph of section 752.0.10.15.1 or section 752.0.10.15.2 applies, a copy of the certificate relating to the work and of any certificate relating to the fair market value of the work; or

 (b) in relation to the gift of an eligible immovable,

(i)  in respect of which subparagraph ii of subparagraph b of the second paragraph of section 752.0.10.15.1 applies, a copy of the qualification certificate relating to the building and of any certificate relating to the fair market value of the immovable, or

(ii)  in respect of which subparagraph iii of subparagraph b of the second paragraph of section 752.0.10.15.1 applies, a copy of any certificate relating to the fair market value of the immovable.

2015, c. 21, s. 292.

752.0.10.15.4. For the purposes of this chapter, the Minister of Culture and Communications shall create a register in which that Minister records the pledges in respect of which an individual (other than a trust) may deduct an amount in computing tax payable for a taxation year under section 752.0.10.6.2.

The Minister of Culture and Communications shall record in the register, at a donor's request, the pledge made by the donor after 3 July 2013 to an eligible cultural donee and assigns a registration number in respect of that pledge if

 (a) the pledge stipulates that the donor undertakes to make a gift to the donee of an eligible amount of at least $250,000 over a period of no more than 10 years, at the rate of a gift of an eligible amount of at least $25,000 in each of the years covered by the pledge; and

 (b) the donor provides the Minister of Culture and Communications with a document, signed by an individual authorized by the donee to acknowledge receipt of gifts, attesting the eligible amount of the gift that is the subject of the pledge.

On or before the last day of the month of February of each year, the Minister of Culture and Communications shall send the Minister a document stating which pledges were recorded in the register before the end of the preceding year.

2015, c. 21, s. 292.

752.0.10.15.5. For the purposes of this chapter, if an individual who makes a registered pledge in respect of a donee does not make a gift of money to the donee in a particular taxation year covered by the pledge, or makes a gift of money in the particular year, in satisfaction of the pledge, whose eligible amount is less than $25,000, the pledge is deemed

 (a) to cease to be, from the particular year, a registered pledge if

(i)  at the end of the preceding taxation year, the aggregate of all amounts each of which is the eligible amount of a gift made, at or before that time, by the individual in satisfaction of the pledge was at least $250,000, or

(ii)  the particular year is included in the calendar year in which the individual became a bankrupt; or

 (b) never to have been registered if

(i)  at the end of the preceding taxation year, the aggregate of all amounts each of which is the eligible amount of a gift made, at or before that time, by the individual in satisfaction of the pledge is less than $250,000, unless the individual dies in the particular year, or

(ii)  the particular year is the first year covered by the pledge.

2015, c. 21, s. 292.

752.0.10.15.6. For the purposes of the definition of “total charitable gifts” of an individual for a taxation year in the first paragraph of section 752.0.10.1, the eligible amount of a gift made by a recognized farm producer of an eligible agricultural product produced by such a producer to a registered charity that is a prescribed charity is to be increased by 1/2 of that amount.

2015, c. 36, s. 46.

752.0.10.16. For the purposes of this chapter, where at any particular time an individual makes a gift, including a gift that, but for this section and section 752.0.10.9, would be deemed under section 752.0.10.10 to have been made at the particular time, of a non-qualifying security of the individual and the gift is not an excepted gift of the individual, the following rules apply:

 (a) except for the purpose of determining the individual's proceeds of disposition of the security pursuant to section 752.0.10.12, the gift is deemed not to have been made;

 (b) if the security ceases to be a non-qualifying security of the individual at a subsequent time that is within 60 months after the particular time and the donee has not disposed of the security at or before the subsequent time, the individual is deemed to have made a gift to the donee of property at the subsequent time and the fair market value of the property is deemed to be the lesser of the fair market value of the security at the subsequent time and the fair market value of the security at the particular time that would, but for this section, have been included in the individual's total charitable gifts or total Crown gifts for a taxation year; and

 (c) if the security is disposed of by the donee within 60 months after the particular time and paragraph b does not apply to the security, the individual is deemed to have made a gift to the donee of a property at the time of the disposition and the fair market value of the property is deemed to be the lesser of the fair market value of any consideration (other than a non-qualifying security of any person) received by the donee for the security and the fair market value of the security at the particular time that would, but for this section, have been included in the individual's total charitable gifts or total Crown gifts for a taxation year;

 (d) (paragraph repealed).

1999, c. 83, s. 96; 2009, c. 5, s. 287; 2012, c. 8, s. 119.

752.0.10.16.1. Section 752.0.10.16.2 applies if, as part of a series of transactions,

 (a) an individual makes, at a particular time, a gift of a particular property to a qualified donee;

 (b) a particular person holds a non-qualifying security of the individual; and

 (c) the qualified donee acquires, directly or indirectly, a non-qualifying security of the individual or of the particular person.

2012, c. 8, s. 120.

752.0.10.16.2. If this section applies because of section 752.0.10.16.1, the following rules apply:

 (a) for the purposes of this chapter, the fair market value of the particular property is deemed to be reduced by an amount equal to the fair market value of the non-qualifying security acquired by the qualified donee;

 (b) for the purposes of section 752.0.10.16, the following presumptions apply:

(i)  if the non-qualifying security acquired by the qualified donee is a non-qualifying security of the particular person, it is deemed to be a non-qualifying security of the individual, and

(ii)  the individual is deemed to have made, at the particular time referred to in section 752.0.10.16.1, a gift of the non-qualifying security acquired by the qualified donee, the fair market value of which may not exceed the amount by which the fair market value of the particular property determined without reference to paragraph a exceeds the fair market value of the particular property determined under paragraph a; and

 (c) paragraph b of section 752.0.10.16 does not apply in respect of the gift.

2012, c. 8, s. 120.

752.0.10.16.3. For the purposes of sections 752.0.10.16.1 and 752.0.10.16.2, if, as part of a series of transactions, an individual makes a gift to a qualified donee and the qualified donee acquires a non-qualifying security of a person (other than the individual or the particular person referred to in section 752.0.10.16.1) and it may reasonably be considered, having regard to all the circumstances, that one of the purposes or results of the acquisition of the non-qualifying security by the qualified donee was to facilitate, directly or indirectly, the making of the gift by the individual, the non-qualifying security acquired by the qualified donee is deemed to be a non-qualifying security of the individual.

2012, c. 8, s. 120.

752.0.10.17. Where a share, in this section referred to as the new share, that is a non-qualifying security of an individual has been acquired by a donee referred to in section 752.0.10.16 in exchange for another share, in this section referred to as the exchanged share, that is a non-qualifying security of the individual as a result of a transaction to which any of sections 301, 301.1, 537 and 541 to 555.4 applies, the new share is deemed for the purposes of section 752.0.10.16 and this section to be the same share as the exchanged share.

1999, c. 83, s. 96.

752.0.10.17.1. For the purposes of section 752.0.10.16, if a donee disposes of a beneficial interest in a trust that is a non-qualifying security of an individual in circumstances where paragraph c of section 752.0.10.16 would, but for this section, apply in respect of the disposition, and in respect of which the donee receives no consideration other than other non-qualifying securities of the individual, the gift referred to in section 752.0.10.16 is deemed to be a gift of those other non-qualifying securities.

2009, c. 15, s. 143.

752.0.10.18. For the purposes of this chapter, the fair market value of a gift of property made at any particular time by an individual is deemed to be equal to the fair market value of the gift of property otherwise determined minus the amount described in the second paragraph, where

 (a) if the property is a non-qualifying security of the individual, the gift is an excepted gift; and

 (b) within 60 months after the particular time,

(i)  the donee holds a non-qualifying security of the individual that was acquired by the donee on the latest of 1 August 1997 and any time that is after 60 months before the particular time, or

(ii)  both

(1)  the individual or any person or partnership with whom or with which the individual does not deal at arm's length uses property of the donee under an agreement that was made or modified after the time that is 60 months before the particular time and has begun to so use it after 31 July 1997, and

(2)  the property was not used in the carrying on of the donee's charitable activities.

The amount to which the first paragraph refers is the aggregate of all amounts each of which is the fair market value of the consideration given by the donee to acquire a non-qualifying security referred to in subparagraph i of subparagraph b of the first paragraph or the fair market value of property referred to in subparagraph ii of that subparagraph b, as the case may be.

Where the first paragraph applies for the purpose of determining the fair market value of a gift made at any particular time by an individual, the fair market value, referred to in the second paragraph, of consideration given to acquire a non-qualifying security referred to in subparagraph i of subparagraph b of the first paragraph or of property referred to in subparagraph ii of that subparagraph b is deemed to be equal to the fair market value of the consideration otherwise determined minus any portion of it that has been used under the first paragraph to reduce the fair market value of another gift made before that time by the individual.

1999, c. 83, s. 96; 2009, c. 15, s. 144.

752.0.10.19. Subject to sections 752.0.10.21 and 752.0.10.22, if an individual has granted an option to a qualified donee in a taxation year, no amount in respect of the option is to be included in computing the total charitable gifts, total Crown gifts, total cultural gifts, total gifts of qualified property or total musical instrument gifts of the individual for any year.

2012, c. 8, s. 121.

752.0.10.20. Section 752.0.10.21 applies if

 (a) an option to acquire a property of an individual is granted to a qualified donee;

 (b) the option is exercised so that the property is disposed of by the individual and acquired by the qualified donee at a particular time; and

 (c) either

(i)  the amount that is 80% of the fair market value of the property at the particular time is greater than or equal to the aggregate of

(1)  the consideration received by the individual from the qualified donee for the property, and

(2)  the consideration received by the individual from the qualified donee for the option, or

(ii)  the individual establishes to the satisfaction of the Minister that the granting of the option or the disposition of the property was made by the individual with the intention to make a gift to the qualified donee.

2012, c. 8, s. 121.

752.0.10.21. If this section applies because of section 752.0.10.20, the following rules apply despite paragraph a of section 296:

 (a) the individual is deemed to have received proceeds of disposition of the property equal to the property's fair market value at the particular time referred to in paragraph b of section 752.0.10.20; and

 (b) there shall be included in the individual's total charitable gifts, for the taxation year that includes the particular time, the amount by which the property's fair market value exceeds the aggregate of the amounts described in subparagraphs 1 and 2 of subparagraph i of paragraph c of section 752.0.10.20.

2012, c. 8, s. 121.

752.0.10.22. If an option to acquire a particular property of an individual is granted to a qualified donee and the option is disposed of by the qualified donee (otherwise than by the exercise of the option) at a particular time, the following rules apply:

 (a) the individual is deemed to dispose of a property at the particular time

(i)  the adjusted cost base of which to the individual immediately before the particular time is equal to the consideration paid by the qualified donee for the option, and

(ii)  the proceeds of disposition of which are equal to the lesser of the fair market value of the particular property at the particular time and the fair market value of any consideration (other than a non-qualifying security of a person) received by the qualified donee for the option; and

 (b) there shall be included in the total charitable gifts of the individual for the individual's taxation year that includes the particular time the amount by which the proceeds of disposition as determined by subparagraph ii of paragraph a exceed the consideration paid by the qualified donee for the option.

2012, c. 8, s. 121.

752.0.10.23. Section 752.0.10.24 applies if a qualified donee has issued to an individual a receipt referred to in section 752.0.10.3 in respect of a transfer of a property (in this section and section 752.0.10.24 referred to as the original property) and a property (in this section and sections 752.0.10.24 to 752.0.10.26 referred to as the particular property) that is

 (a) the original property is later transferred to the individual (unless that later transfer is reasonable consideration or remuneration for property acquired by or services rendered to a person); or

 (b) any other property that may reasonably be considered compensation for or a substitute for, in whole or in part, the original property, is later transferred to the individual.

2012, c. 8, s. 121.

752.0.10.24. If this section applies because of section 752.0.10.23, the following rules apply:

 (a) irrespective of whether the transfer of the original property by the individual is a gift, the individual is deemed not to have disposed of the original property at the time of that transfer nor to have made a gift;

 (b) if the particular property is identical to the original property, the particular property is deemed to be the original property; and

 (c) if the particular property is not the original property,

(i)  the individual is deemed to have disposed of the original property at the time that the particular property is transferred to the individual for proceeds of disposition equal to the greater of the fair market value of the particular property at that time and the fair market value of the original property at the time that it was transferred by the individual to the qualified donee, and

(ii)  if, but for paragraph a, the transfer of the original property by the individual would be a gift, the individual is deemed to have, at the time of that transfer, transferred to the qualified donee a property that is the subject of a gift having a fair market value equal to the amount by which the fair market value of the original property at the time of that transfer exceeds the fair market value of the particular property at the time that it is transferred to the individual.

2012, c. 8, s. 121.

752.0.10.25. If section 752.0.10.24 applies in respect of a transfer of a particular property to an individual and that particular property has a fair market value greater than $50, the transferor must, in respect of that transfer, file a return containing prescribed information with the Minister not later than 90 days after the day on which the particular property was transferred and provide a copy of the return to the individual.

2012, c. 8, s. 121.

752.0.10.26. If section 752.0.10.24 applies in respect of a transfer of a particular property to an individual, the Minister may, despite sections 1010 to 1011, make any assessment, reassessment or additional assessment of tax, interest or penalties payable under this Part by a person for any taxation year to the extent that the assessment, reassessment or additional assessment can reasonably be regarded as relating to the transfer of the particular property.

2012, c. 8, s. 121.

CHAPTER I.0.3 
TAX CREDITS FOR MEDICAL EXPENSES OR CARE AND FOR SEVERE AND PROLONGED IMPAIRMENTS IN MENTAL OR PHYSICAL FUNCTIONS
1989, c. 5, s. 104; 1993, c. 19, s. 52; 1993, c. 64, s. 68; 2005, c. 1, s. 160; 2006, c. 36, s. 71.

752.0.11. An individual may deduct from his tax otherwise payable for a taxation year under this Part an amount determined by the formula


A × (B − C).


In the formula provided for in the first paragraph,

 (a) A is the rate specified in section 750.1 for the year;

 (b) B is the aggregate of the medical expenses described in section 752.0.11.1 that

(i)  are proven by a receipt filed with the Minister,

(ii)  have not already been included by the individual or any other person in computing a determined amount, for the purposes of this section or section 358.0.1 or 1029.8.118, in respect of a preceding taxation year,

(iii)  are not included by any other person in computing a determined amount, for the purposes of section 358.0.1, in respect of any taxation year, and

(iv)  were paid by either the individual or the individual’s legal representative, or by a person who is the individual’s spouse during the year or on the date on which the medical expenses were paid,

(1)  within any period of 12 months ending in the year, or

(2)  if the medical expenses were paid in respect of a person, including the individual, who died in the year, within any period of 24 months that includes the day of the person’s death; and

 (c) C is 3% of the aggregate of the individual’s income for the year and the income, for the year, of the person who is the individual’s eligible spouse for the year within the meaning of sections 776.41.1 to 776.41.4;

 (d) (subparagraph repealed).

1989, c. 5, s. 104; 1990, c. 59, s. 288; 1993, c. 64, s. 69; 1997, c. 14, s. 113; 1997, c. 85, s. 130; 2000, c. 5, s. 163; 2001, c. 51, s. 54; 2003, c. 9, s. 83; 2004, c. 21, s. 196; 2005, c. 38, s. 145.

752.0.11.0.1. (Repealed).

1997, c. 85, s. 131; 2003, c. 9, s. 84.

752.0.11.1. Subject to section 752.0.11.1.3, the medical expenses to which subparagraph b of the second paragraph of section 752.0.11 refers are amounts paid

 (a) to a dentist, nurse or practitioner or a public or licensed private hospital in respect of medical, paramedical or dental services provided to a person;

 (b) to a person authorized under the laws of a province to practise the profession of a dental prosthetist, for the making, repairing and fitting of dental prostheses, for a person;

 (c) for drugs, medicaments or other preparations or substances (other than those listed in paragraph d)

(i)  for use in the diagnosis, treatment or prevention of a disease, disorder or abnormal physical state, or its symptoms, or in restoring, correcting or modifying an organic function,

(ii)  that can lawfully be acquired for use by a person only if prescribed by a practitioner or dentist, and

(iii)  the purchase of which is recorded by a pharmacist;

 (c.1) for drugs, medicaments or other preparations or substances that are prescribed by regulation;

 (d) for an oxygen tent or other equipment necessary to administer oxygen or for insulin, oxygen, liver extract injectable for pernicious anaemia or vitamin B12 for pernicious anaemia, if used by a person as prescribed by a practitioner;

 (d.1) for hyperbaric oxygen therapy sessions provided to a person with a severe and prolonged neurological disorder in respect of whom, because of the person's severe and prolonged impairment in mental or physical functions, subparagraphs a to c of the first paragraph of section 752.0.14 apply for the taxation year in which the expense was incurred;

 (e) for laboratory analyses, radiological examinations or other diagnostic procedures together with interpretations thereof, if such analyses, examinations and other procedures are effected for maintaining health, preventing disease or assisting in the diagnosis or treatment of an injury, illness or disability, for a person as prescribed by a practitioner or dentist;

 (f) for eye glasses or other devices for the treatment or correction of a defect of vision of a person as prescribed by a practitioner or optometrist;

 (g) for transportation of a person by ambulance to or from a public or licensed private hospital;

 (h) to a person engaged in the business of providing transportation services, for the transportation of a particular person or a particular person and one person who accompanies the particular person, if, in the latter case, the particular person has been certified in writing by a practitioner to be incapable of travelling without assistance from the locality where the particular person dwells to the place where medical or paramedical services are normally provided, if that place is not less than 40 km from that locality, if equivalent or substantially equivalent services were not available in that locality, if the particular person travelled to that place to obtain such services for himself or herself and if, having regard to the circumstances, it was reasonable to travel to that place to obtain those services and the route travelled was the most reasonably direct route;

 (i) for reasonable travel expenses, other than expenses described in paragraph h, incurred in respect of a particular person or a particular person and one person who accompanies the particular person, if, in the latter case, the particular person has been certified in writing by a practitioner to be incapable of travelling without assistance, to obtain medical or paramedical services in a place that is not less than 80 km from the locality where the particular person dwells, if equivalent or substantially equivalent services were not available in that locality, if the particular person travelled to that place to obtain such services for himself or herself and if, having regard to the circumstances, it was reasonable to travel to that place to obtain those services and the route travelled was the most reasonably direct route;

 (j) for or in respect of an artificial limb, iron lung, rocking bed for poliomyelitis victims, wheelchair, crutches, spinal brace, brace for a limb, ileostomy or colostomy pad, truss for hernia, artificial eye, laryngeal speaking aid, aid to hearing, artificial kidney machine, phototherapy equipment for the treatment of psoriasis or other skin disorders, or an oxygen concentrator;

 (j.1) for or in respect of diapers, disposable briefs, catheters, catheter trays, tubing or other products required by a person by reason of incontinence caused by illness, injury or affliction;

 (k) for the care, or the care and training, at a school, institution or other place, of a particular person, if the particular person has been certified in writing by a qualified person to be a person who, by reason of a physical or mental handicap, requires the equipment, facilities or personnel specially provided by that school, institution or other place for the care, or the care and training, of persons suffering from such a handicap, other than amounts paid to the operator of a private seniors' residence, within the meaning of the first paragraph of section 1029.8.61.1 if the definition of that expression were read without reference to for a particular month and , at the beginning of the particular month,;

 (l) for the full-time care in a nursing home of a person, if the person has been certified in writing by a practitioner to be a person who, by reason of lack of normal mental capacity, is and in the foreseeable future will continue to be dependent on others for the person's personal needs and care;

 (m) as remuneration for one full-time attendant on, or for the full-time care in a nursing home of, a person in respect of whom subparagraphs a to c of the first paragraph of section 752.0.14 apply for the taxation year in which the expense was incurred if, at the time the remuneration is paid, the attendant is neither the individual referred to in section 752.0.11 or that individual's spouse, nor under 18 years of age;

 (m.1) as remuneration for attendant care provided in Canada to a person in respect of whom subparagraphs a to c of the first paragraph of section 752.0.14 apply for the taxation year in which the expense was incurred, to the extent that the total of amounts so paid does not exceed $10,000, or $20,000 if the individual referred to in section 752.0.11 dies in the year, where

(i)  no part of the remuneration is included in computing an amount deducted in respect of the person under section 358.0.1 or any of paragraphs k, l, m, m.2 and n for a taxation year, or taken into consideration in computing an amount deemed to have been paid to the Minister in respect of the person under Division II.13 of Chapter III.1 of Title III of Book IX for any taxation year,

(i.1)  no part of the remuneration constitutes an expense in respect of which the individual referred to in section 752.0.11, or the person who is the individual's spouse at the time the remuneration is paid, may be deemed to have paid an amount to the Minister on account of the individual's tax payable, for a taxation year, under Division II.11.1 of Chapter III.1 of Title III of Book IX,

(ii)  at the time the remuneration is paid, the attendant is neither the individual referred to in section 752.0.11 or that individual's spouse, nor under 18 years of age, and

(iii)  each receipt filed with the Minister to prove payment of the remuneration was issued by the payee and contains, where the payee is an individual, that individual's Social Insurance Number;

 (m.2) as remuneration for a person's care or supervision provided in a group home in Canada maintained and operated exclusively for the benefit of individuals who have a severe and prolonged impairment, if, because of the person's severe and prolonged impairment, the person is a person in respect of whom subparagraphs a to c of the first paragraph of section 752.0.14 apply for the taxation year in which the expense was incurred, where

(i)  no part of the remuneration is included in computing an amount deducted in respect of the person under section 358.0.1 or any of paragraphs k, l, m, m.1 and n for a taxation year, or taken into consideration in computing an amount deemed to have been paid to the Minister in respect of the person under Division II.13 of Chapter III.1 of Title III of Book IX for any taxation year, and

(ii)  each receipt filed with the Minister to prove payment of the remuneration was issued by the payee and contains, where the payee is an individual, that individual's Social Insurance Number;

 (n) as remuneration for one full-time attendant on a person in a self-contained domestic establishment in which the person receiving the care lives, if that person is, and has been certified in writing by a practitioner to be, a person who, by reason of mental or physical infirmity, is and is likely to be for a long-continued period of indefinite duration dependent on others for the person's personal needs and care, if, at the time the remuneration is paid, the attendant is neither the person's spouse nor under 18 years of age, and if the receipt filed with the Minister to prove payment of the remuneration was issued by the payee and contains, where the payee is an individual, that individual's Social Insurance Number;

 (o) on behalf of a person who is blind or profoundly deaf or has severe autism, severe diabetes, severe epilepsy or a severe and prolonged impairment that markedly restricts the use of the person's arms or legs,,

(i)  for an animal specially trained to assist the person in coping with the impairment and provided by a person or organization one of whose main purposes is such training of animals,

(ii)  for the care and maintenance of such an animal, including food and veterinary care,

(iii)  for reasonable travel expenses of the person incurred for the purpose of attending a school, institution or other facility that trains, in the handling of such animals, individuals who are so impaired, and

(iv)  for reasonable board and lodging expenses of the person incurred for the purpose of attending full-time courses at a place described in subparagraph iii;

 (o.1) for reasonable expenses relating to rehabilitative therapy, including training in lip reading and sign language, incurred to adjust for the person's hearing or speech loss;

 (o.2) on behalf of a person who has a speech or hearing impairment, for sign language interpretation services or real-time captioning services, to the extent that the payment is made to a person engaged in the business of providing such services;

 (o.2.1) on behalf of a person who has an impairment in mental or physical functions, for note-taking services, if

(i)  the person has been certified in writing by a practitioner to be a person who, because of that impairment, requires those services, and

(ii)  the payment is made to a person engaged in the business of providing such services;

 (o.2.2) on behalf of a person who has an impairment in physical functions, for the cost of voice recognition software, if the person has been certified in writing by a practitioner to be a person who, because of that impairment, requires that software;

 (o.2.3) on behalf of a person who is blind or has a severe learning disability, for reading services, if

(i)  the person has been certified in writing by a practitioner to be a person who, because of that impairment or disability, requires those services, and

(ii)  the payment is made to a person in the business of providing those services;

 (o.2.4) on behalf of a person who is blind and profoundly deaf, for deaf-blind intervening services, to the extent that the payment is made to a person in the business of providing those services;

 (o.3) for reasonable moving expenses, described in section 350, of a person who lacks normal physical development or has a severe and prolonged mobility impairment, other than expenses deducted under section 348 for any taxation year, incurred for the purpose of the person's move to a new dwelling that is more accessible by the person or in which the person is more mobile or functional, if the total of the expenses claimed under this paragraph does not exceed $2,000;

 (o.4) for reasonable expenses relating to alterations to the driveway of the principal place of residence of a person who has a severe and prolonged mobility impairment, to facilitate the person's access to a bus;

 (o.5) for a van that, at the time of its acquisition or within six months after that time, has been adapted for the transportation of a person who requires the use of a wheelchair, to the extent of the lesser of $5,000 and 20% of the amount by which the amount paid for the acquisition of the van exceeds the portion of that amount that is included because of paragraph s in computing an amount deductible by the person under section 752.0.11 for any taxation year;

 (o.6) for reasonable expenses, other than amounts paid to a person who was at the time of the payment the spouse of the individual referred to in section 752.0.11 or a person under 18 years of age, to train the individual, or a person related to the individual, if the training relates to the impairment in mental or physical functions of a person who is related to the individual and is a member of the individual's household or is dependent on the individual for support;

 (o.7) as remuneration for therapy provided to a person because of the person's severe and prolonged impairment, if subparagraphs a to c of the first paragraph of section 752.0.14 apply for the taxation year in which the expense was incurred, where

(i)  the therapy is prescribed by, and administered under the general supervision of a physician or a psychologist, in the case of an impairment in mental functions, or a physician or an occupational therapist, in the case of an impairment in physical functions,

(ii)  at the time the remuneration is paid, the payee is neither the person's spouse nor an individual who is under 18 years of age, and

(iii)  each receipt filed with the Minister to prove payment of the remuneration was issued by the payee and contains, where the payee is an individual, that individual's Social Insurance Number;

 (o.8) as remuneration for tutoring services that are rendered to, and are supplementary to the primary education of, a person who has a learning disability or an impairment in mental functions, and has been certified in writing by a practitioner to be a person who, because of that disability or impairment, requires such services, if the payment is made to a person ordinarily engaged in the business of providing such services to individuals who are not related to the payee;

 (o.9) as remuneration for the design of an individualized therapy plan for a person if, because of the person's severe and prolonged impairment, the person is a person in respect of whom subparagraphs a to c of the first paragraph of section 752.0.14 apply for the taxation year in which the remuneration is paid, where

(i)  the plan is required to access public funding for specialized therapy or is prescribed by a physician or a psychologist, in the case of an impairment in mental functions, or a physician or an occupational therapist, in the case of an impairment in physical functions,

(ii)  the therapy set out in the plan is prescribed by and, if undertaken, administered under the supervision of a physician or a psychologist, in the case of an impairment in mental functions, or a physician or an occupational therapist, in the case of an impairment in physical functions, and

(iii)  the ordinary business of the payee includes the design of such plans for individuals who are not related to the payee;

 (p) as a premium or other consideration to a private health services plan in respect of the individual referred to in section 752.0.11, the individual's spouse or any other person living with the individual and with whom the individual is connected by blood relationship, marriage or adoption, or in respect of several of those persons;

 (q) on behalf of a person who requires a bone marrow or organ transplant,

(i)  for reasonable expenses, other than expenses described in subparagraph ii but including legal costs and insurance premiums, incurred to locate a compatible donor and to arrange for the transplant, and

(ii)  for reasonable travel, board and lodging expenses, other than expenses described in paragraphs h and i, of the person and one other person who accompanies the person, and of the donor and one other person who accompanies the donor, incurred in respect of the transplant;

 (r) for reasonable expenses relating to renovations or alterations to a dwelling of a person who lacks normal physical development or has a severe and prolonged mobility impairment, to enable the person to gain access to, or to be mobile or functional within, the dwelling, provided that those expenses

(i)  are not of a type that would typically be expected to increase the value of the dwelling, and

(ii)  are of a type that would not normally be incurred by a person who has normal physical development or who does not have a severe and prolonged mobility impairment;

 (r.1) for reasonable expenses, relating to the construction of the principal place of residence of a person who lacks normal physical development or has a severe and prolonged mobility impairment, that can reasonably be considered to be incremental costs incurred to enable the person to gain access to, or to be mobile or functional within, the person's principal place of residence, provided that those expenses

(i)  are not of a type that would typically be expected to increase the value of the dwelling, and

(ii)  are of a type that would not normally be incurred by a person who has normal physical development or who does not have a severe and prolonged mobility impairment;

 (s) for any device or equipment not otherwise described in this section, if it is used by a person as prescribed by a practitioner, is prescribed by regulation and meets such conditions as may be prescribed as to its use or the reason for its acquisition, but only to the extent that the amounts so paid do not exceed the amount, if any, prescribed in respect of the device or equipment.

 (t) on behalf of a person who has celiac disease and who has been certified in writing by a practitioner to be a person who, because of that disease, requires a gluten-free diet, for the incremental cost of acquiring gluten-free food products as compared to the cost of comparable non-gluten-free food products;

 (u) for drugs obtained under Health Canada's Special Access Programme in accordance with sections C.08.010 and C.08.011 of the Food and Drug Regulations (C.R.C., c. 870) made under the Food and Drugs Act (R.S.C. 1985, c. F-27) and purchased for use by a person;

 (v) for medical devices obtained under Health Canada's Special Access Programme in accordance with Part 2 of the Medical Devices Regulations (SOR/98-282) made under the Food and Drugs Act and purchased for use by a person; or

 (w) on behalf of a person who is authorized to possess marihuana for medical purposes under the Marihuana Medical Access Regulations (SOR/2001-227) made under the Controlled Drugs and Substances Act (S.C. 1996, c. 19) or section 56 of that Act, for

(i)  the cost of marihuana or marihuana seeds purchased from Health Canada, or

(ii)  the cost of marihuana purchased from an individual who possesses, on behalf of that person, a designated-person production licence to produce marihuana under the Marihuana Medical Access Regulations or an exemption for cultivation or production under section 56 of the Controlled Drugs and Substances Act.

1990, c. 59, s. 289; 1991, c. 8, s. 44; 1993, c. 16, s. 281; 1994, c. 22, s. 262; 1995, c. 1, s. 79; 1995, c. 63, s. 59; 1997, c. 14, s. 114; 1997, c. 85, s. 132; 1999, c. 89, s. 53; 2000, c. 5, s. 164; 2000, c. 39, s. 60; 2001, c. 51, s. 55; 2001, c. 53, s. 115; 2003, c. 2, s. 222; 2004, c. 8, s. 145; 2005, c. 1, s. 161; 2005, c. 38, s. 146; 2006, c. 36, s. 72; 2009, c. 5, s. 288; 2009, c. 15, s. 145; 2013, c. 10, s. 53; 2015, c. 24, s. 102; I.N. 2016-01-01 (NCCP).

752.0.11.1.1. (Repealed).

1997, c. 85, s. 133; 2000, c. 39, s. 61.

752.0.11.1.2. (Repealed).

1997, c. 85, s. 133; 2000, c. 39, s. 61.

752.0.11.1.3. The medical expenses referred to in section 752.0.11.1 do not include

 (a) the expenses related to an in vitro fertilization treatment, if such expenses are

(i)  eligible expenses within the meaning of the first paragraph of section 1029.8.66.1,

(ii)  paid in respect of an in vitro fertilization treatment undergone by a woman who is no longer of childbearing age, or

(iii)  paid in respect of an in vitro fertilization treatment during which an in vitro fertilization activity is carried out that does not meet a condition of paragraphs a and b of the definition of eligible in vitro fertilization treatment in the first paragraph of section 1029.8.66.1;

 (b) the expenses paid for medical, paramedical or dental services provided for purely cosmetic purposes; and

 (c) the transportation, travel or lodging expenses paid for medical, paramedical or dental services provided for purely cosmetic purposes.

2001, c. 51, s. 56; 2005, c. 38, s. 147; 2011, c. 6, s. 156.

752.0.11.2. Where a person engaged in the business of providing transportation services is not readily available and an individual makes use of a vehicle for the purposes described in paragraph h of section 752.0.11.1, a reasonable amount in respect of the operation of the vehicle is deemed, for the purposes of the said paragraph and subparagraph b of the second paragraph of section 752.0.11, to have been paid to such person by the individual or his legal representatives.

1990, c. 59, s. 289.

752.0.11.3. For the purposes of subparagraph b of the second paragraph of section 752.0.11, the following rules apply:

 (a) any amount included in computing the income of an individual or of the individual’s spouse for a taxation year from an office or employment in respect of a medical expense described in section 752.0.11.1 and paid or provided by an employer at a particular time for the benefit of the individual, the individual’s spouse or a person referred to in section 752.0.12 who is a dependant of the individual is deemed to be a medical expense paid at that time by the individual or the individual’s spouse, as the case may be;

 (b) an amount to be paid for the year by an individual under subdivision 2 of Division I.1 of Chapter IV of the Act respecting the Régie de l’assurance maladie du Québec (chapter R-5) is deemed to be paid on 31 December of the year for which that amount is required to be paid.

1990, c. 59, s. 289; 1997, c. 14, s. 115; 2001, c. 51, s. 57.

752.0.11.4. For the purposes of subparagraph b of the second paragraph of section 752.0.11, the aggregate of all amounts each of which is an amount that an individual includes in computing the aggregate described in that subparagraph b for a taxation year, that is attributable to the cost of eyeglass frames acquired in the period referred to in subparagraph i or ii of that subparagraph b, determined in respect of that year, and that is paid for the benefit of a particular person who is the individual, the individual’s spouse or a dependant of the individual referred to in section 752.0.12, may not exceed $200.

2005, c. 38, s. 148.

752.0.12. The expenses referred to in subparagraph b of the second paragraph of section 752.0.11, except where that subparagraph b refers to the expenses described in paragraph o.6 of section 752.0.11.1, must have been paid for the benefit of the individual, the individual’s spouse or any other person who is a dependant of the individual in the taxation year in which the expenses were incurred.

The expenses referred to in subparagraph b of the second paragraph of section 752.0.11, where that subparagraph b refers to the expenses described in paragraph o.6 of section 752.0.11.1, must have been paid in the taxation year in which the expenses were incurred.

1989, c. 5, s. 104; 1993, c. 64, s. 70; 2001, c. 53, s. 116; 2005, c. 1, s. 162.

752.0.12.1. For the purposes of subparagraph b of the second paragraph of section 752.0.11, the expenses or the expenditure, as the case may be, taken into account in determining an amount that an individual or the individual’s spouse is deemed to have paid to the Minister under section 1029.8.61.5 or 1029.8.63 for a preceding taxation year or has deducted under section 118.2 of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement) in computing the tax payable under that Act by the individual for a preceding taxation year in respect of which the individual was not liable to pay tax under this Part shall not be included as medical expenses of the individual for a taxation year.

1995, c. 1, s. 80; 1997, c. 14, s. 116; 2000, c. 39, s. 62.

752.0.13. For the purposes of subparagraph b of the second paragraph of section 752.0.11, there shall not be included as a medical expense of an individual any expense to the extent that the individual, the individual's spouse, a particular person referred to in section 752.0.12 who is a dependant of the individual, any person related to the individual, the individual's spouse or that particular person, or the legal representative of any of them is entitled to be reimbursed for the expense, except to the extent that the amount of the reimbursement is required to be included in computing income and is not deductible in computing taxable income.

1989, c. 5, s. 104; 1994, c. 22, s. 263; 2000, c. 5, s. 165.

752.0.13.0.1. Where, for a taxation year, an individual would, but for this section, be entitled to include, in computing the amount determined in respect of the individual for the year under subparagraph b of the second paragraph of section 752.0.11, medical expenses that are the same as those that would, but for this section, be included in computing the amount determined in respect of one or more other individuals for the year under that subparagraph b, the aggregate of the amounts that may be so included by the individuals in respect of those medical expenses shall not exceed the amount that, if only one individual were entitled to include those medical expenses in computing the amount determined in his respect for the year under that subparagraph, would be so included by the individual in respect of those medical expenses.

Where the individuals cannot agree as to what portion of the amount of medical expenses each would, but for this section, be entitled to include in computing the amount determined in his respect for the year under subparagraph b of the second paragraph of section 752.0.11, the Minister may determine that portion of the amount for the year.

1997, c. 14, s. 117.

752.0.13.1. An individual may deduct from his tax otherwise payable for a taxation year under this Part an amount equal to the amount obtained by multiplying the percentage specified in section 750.1 for the year by the amount of the reasonable travel and lodging expenses paid in the year by either the individual or his legal representatives, in respect of a particular person referred to in section 752.0.13.2, so that the particular person may obtain in Québec medical care not available in Québec within 250 km of the locality where he lives, or in respect of such a particular person and the person accompanying him so that the particular person may obtain such medical care where, in the latter case, the particular person is under 18 years of age in the year or is unable to travel unassisted if, in either case, the individual files with the Minister the prescribed form whereon a physician certifies that care equivalent or virtually equivalent to that obtained is not available in Québec within 250 km of the locality where the particular person lives and, where such is the case, that the particular person is unable to travel unassisted.

The travel and lodging expenses referred to in the first paragraph do not include

 (a) the expenses related to an in vitro fertilization treatment, if such expenses are

(i)  eligible expenses within the meaning of the first paragraph of section 1029.8.66.1,

(ii)  paid in respect of an in vitro fertilization treatment undergone by a woman who is no longer of childbearing age, or

(iii)  paid in respect of an in vitro fertilization treatment during which an in vitro fertilization activity is carried out that does not meet a condition of paragraphs a and b of the definition of eligible in vitro fertilization treatment in the first paragraph of section 1029.8.66.1; and

 (b) the transportation, travel or lodging expenses paid for medical, paramedical or dental services provided for purely cosmetic purposes.

1990, c. 7, s. 61; 1997, c. 85, s. 330; 2001, c. 51, s. 58; 2005, c. 38, s. 149; 2011, c. 6, s. 157.

752.0.13.1.1. An individual who moves from a former residence situated in Québec at which the individual ordinarily lived to a new residence, at which the individual ordinarily lives, situated in Québec not more than 80 kilometres from a health establishment situated in Québec so that a particular person referred to in section 752.0.13.2 may obtain, at that establishment, medical care not available in Québec within 250 kilometres of the locality in which the former residence of the individual is situated, may deduct from the individual’s tax otherwise payable for a taxation year under this Part an amount equal to the amount obtained by multiplying the percentage specified in section 750.1 for the year by the amount of the moving expenses referred to in the second paragraph paid in the year by the individual or the individual’s legal representatives in respect of the move, if the individual files with the Minister the prescribed form whereon a physician certifies that the medical care may reasonably be expected to last at least six months and whereon that physician and the director general, or the director general’s delegate in that respect, of a health establishment that is in the area in which the former residence of the individual is situated certify that care equivalent or virtually equivalent to that obtained is not available in Québec within 250 kilometres of the locality where the former residence of the individual is situated.

The moving expenses referred to in the first paragraph are those described in section 350 in respect of which the individual has not deducted an amount under section 752.0.13.1 in computing his tax payable for a taxation year.

1993, c. 19, s. 53; 1997, c. 85, s. 330; 2001, c. 51, s. 59.

752.0.13.2. The particular person to whom sections 752.0.13.1 and 752.0.13.1.1 refer is the individual, the individual’s spouse or any person dependent on the individual during the taxation year in which the expenses were incurred.

1990, c. 7, s. 61; 1993, c. 19, s. 54; 2005, c. 1, s. 163.

752.0.13.3. For the purposes of sections 752.0.13.1 and 752.0.13.1.1,

 (a) any amount included in computing an individual's income for a taxation year from an office or employment in respect of travel and lodging expenses referred to in section 752.0.13.1 or moving expenses referred to in section 752.0.13.1.1, and paid or furnished by an employer at any particular time, is deemed to constitute travel and lodging expenses or moving expenses, as the case may be, paid at that particular time by the individual;

 (b) the expenses in respect of which the individual has deducted, for a taxation year, an amount under any other provision of this Part and the expenses for which the individual or his legal representatives have received a reimbursement or are entitled thereto are not considered travel and lodging expenses or moving expenses paid by the individual in a year except, in the latter case, to the extent that the amount of the expenses is required to be included in computing the individual's income under this Part.

1990, c. 7, s. 61; 1993, c. 19, s. 54.

752.0.13.4. (Repealed).

1993, c. 64, s. 71; 1997, c. 85, s. 330; 1999, c. 89, s. 53; 2001, c. 51, s. 60; 2005, c. 1, s. 164.

752.0.13.5. (Repealed).

1993, c. 64, s. 71; 1996, c. 39, s. 273; 2005, c. 1, s. 164.

752.0.14. An individual may deduct from the individual's tax otherwise payable for a taxation year under this Part an amount equal to the amount obtained by multiplying the percentage specified in section 750.1 for the year by the amount of $2,295 if

 (a) the individual has a severe and prolonged impairment in mental or physical functions the effects of which are such that

(i)  the individual's ability to perform a basic activity of daily living is markedly restricted, or

(ii)  the individual's ability to perform more than one basic activity of daily living is significantly restricted if the cumulative effect of those restrictions is equivalent to having a marked restriction in the ability to perform a basic activity of daily living;

 (b) in the case where subparagraph i of subparagraph a applies, a physician, or, where the individual has a sight impairment, a physician or an optometrist, or, where the individual has a speech impairment, a physician or a speech-language pathologist, or, where the individual has a hearing impairment, a physician or an audiologist, or, where the individual has an impairment with respect to the individual's ability in feeding or dressing himself or herself, a physician or an occupational therapist, or, where the individual has an impairment with respect to the individual's ability in walking, a physician, an occupational therapist or a physiotherapist, or, where the individual has an impairment with respect to the individual's ability in mental functions necessary for everyday life, a physician or a psychologist, has certified in prescribed form that the individual has an impairment referred to in subparagraph i of subparagraph a;

 (b.1) in the case where subparagraph ii of subparagraph a applies, a physician or, where the individual has an impairment with respect to the individual's ability in walking or in feeding or dressing himself or herself, a physician or an occupational therapist, has certified in prescribed form that the individual has an impairment referred to in subparagraph ii of subparagraph a;

 (c) the individual has filed with the Minister the certificate referred to in paragraph b or b.1 for the year; and

 (d) neither the individual nor any other person has included, in computing a deduction under section 752.0.11 for the year, otherwise than by reason of paragraph m.1 of section 752.0.11.1, an amount in respect of remuneration for an attendant or care in a nursing home, in respect of the individual.

Despite the first paragraph, if the individual is a person in respect of whom another individual receives, in the year, an amount to which subparagraph b of the second paragraph of section 1029.8.61.18 refers, the amount in dollars that, with reference to section 750.2, would otherwise be deductible under that first paragraph for the year is to be replaced by an amount equal to the proportion of that amount that the number of months in the year in respect of which such an amount is not received in respect of the individual is of 12.

1989, c. 5, s. 104; 1993, c. 16, s. 282; 1997, c. 85, s. 330; 2000, c. 5, s. 166; 2001, c. 51, s. 61; 2001, c. 53, s. 117; 2003, c. 2, s. 223; 2005, c. 1, s. 165; 2005, c. 38, s. 150; 2006, c. 36, s. 73; 2009, c. 5, s. 289.

752.0.15. (Repealed).

1989, c. 5, s. 104; 1993, c. 16, s. 283; 1993, c. 64, s. 72; 1994, c. 22, s. 264; 1995, c. 1, s. 81; 1997, c. 14, s. 290; 1997, c. 85, s. 330; 2000, c. 39, s. 63; 2001, c. 51, s. 62; 2003, c. 9, s. 85; 2005, c. 1, s. 166; 2005, c. 38, s. 151.

752.0.15.1. (Repealed).

2000, c. 39, s. 64; 2005, c. 1, s. 167; 2005, c. 38, s. 151.

752.0.16. (Repealed).

1989, c. 5, s. 104; 2005, c. 38, s. 151.

752.0.17. For the purposes of sections 42.0.1 and 752.0.11 to 752.0.14 and this section,

 (a) an impairment is prolonged where it has lasted, or may reasonably be expected to last, for a continuous period of a least 12 months;

 (b) an individual’s ability to perform a basic activity of daily living is markedly restricted solely where

(i)  all or substantially all of the time, even with therapy and the use of appropriate devices and medication, the individual is blind or unable, or requires an inordinate amount of time, to perform a basic activity of daily living, or

(ii)  because of a chronic disease, the individual must spend, at least twice a week, a total of not less than 14 hours on therapy, prescribed by a physician, that is essential to sustain one of the individual’s vital functions;

 (b.1) an individual is considered to have the equivalent of a marked restriction in a basic activity of daily living only where all or substantially all of the time, even with therapy and the use of appropriate devices and medication, the individual's ability to perform more than one basic activity of daily living, including the ability to see, is significantly restricted, and the cumulative effect of those restrictions is equivalent to having a marked restriction in the ability to perform a basic activity of daily living;

 (c) a basic activity of daily living of an individual means

(i)  mental functions necessary for everyday life,

(ii)  feeding or dressing oneself,

(iii)  speaking so as to be understood, in a quiet setting,

(iv)  hearing so as to understand, in a quiet setting,

(v)  eliminating (bowel or bladder functions), or

(vi)  walking;

 (d) for greater certainty, no other activity, including working, housekeeping or a social or recreational activity, shall be considered as a basic activity of daily living;

 (d.1) mental functions necessary for everyday life include

(i)  memory,

(ii)  problem solving, goal-setting and judgement, and

(iii)  adaptive functioning;

 (e) feeding oneself does not include

(i)  identifying, finding, shopping for or otherwise procuring food, or

(ii)  preparing food to the extent that the time associated with the activity would not have been necessary in the absence of a dietary restriction or regime; and

 (f) dressing oneself does not include identifying, finding, shopping for or otherwise procuring clothing.

For the purposes of subparagraph ii of subparagraph b of the first paragraph, the therapy essential to sustain one of the vital functions of an individual who is suffering from a chronic disease does not include therapy that may reasonably be expected to have a beneficial effect on an individual who is not suffering from such a chronic disease.

Where an amount has been deducted under section 752.0.14 or 776.41.5 in respect of an individual, any person referred to in that section shall, on request in writing by the Minister for information with respect to the individual’s impairment and its effect on the individual or with respect to the therapy referred to in subparagraph ii of subparagraph b of the first paragraph that is, where applicable, required to be administered to the individual, provide the information so requested in writing.

1989, c. 5, s. 104; 1990, c. 59, s. 290; 1993, c. 16, s. 284; 2000, c. 39, s. 65; 2002, c. 40, s. 69; 2003, c. 2, s. 224; 2003, c. 9, s. 86; 2005, c. 1, s. 168; 2005, c. 38, s. 152; 2006, c. 36, s. 74.

752.0.18. For the purposes of sections 358.0.1 and 752.0.11 to 752.0.14, “practitioner” means

 (a) a person practising a profession within the scope of which health-related care and treatments are provided to individuals, unless the person is practising a profession described in the second paragraph, in which case, a person practising such a profession in respect of the services mentioned in that paragraph, and who is authorized to practise such a profession in accordance with

(i)  the laws of the jurisdiction in which services are rendered, in the case of services rendered by such a person to an individual,

(ii)  the laws of the jurisdiction in which an individual resides or of a province, in the case of a certificate issued by such a person in respect of that individual, or

(iii)  the laws of the jurisdiction in which an individual resides, of a province or of the jurisdiction in which the property is provided, in the case of a prescription issued by such a person for property to be provided to or for the use of the individual;

 (b) a person practising the profession of homeopath, naturopath, osteopath or phytotherapist, in respect of the services the person provides in that capacity; and

 (c) a person practising the profession of psychoanalyst, in respect of therapy services;

 (d) (paragraph repealed).

The professions to which subparagraph a of the first paragraph refers are

 (a) the profession of psychologist, in respect of therapy and rehabilitation services;

 (b) the profession of social worker, in respect of psychotherapy services and rehabilitation services for accident victims or persons suffering from an illness or disability;

 (c) the profession of vocational guidance counsellor or psychoeducator, in respect of psychotherapy services; and

 (d) the profession of sexologist or marriage and family therapist, in respect of therapy services.

For the purposes of sections 752.0.11 to 752.0.14, 1029.8.66.1 and 1029.8.67 to 1029.8.81, a reference to an audiologist, dentist, occupational therapist, nurse, physician, optometrist, speech-language pathologist, pharmacist, physiotherapist or psychologist is a reference to a person authorized to practise as such in accordance with any of subparagraphs i to iii of subparagraph a of the first paragraph.

1989, c. 5, s. 104; 1990, c. 59, s. 291; 1995, c. 1, s. 82; 1997, c. 14, s. 290; 2000, c. 5, s. 167; 2001, c. 53, s. 118; 2003, c. 2, s. 225; 2005, c. 38, s. 153; 2006, c. 36, s. 75; 2011, c. 6, s. 158; 2015, c. 21, s. 293.

752.0.18.0.1. For the purposes of the first paragraph of section 752.0.12 and section 752.0.13.2, a dependant of an individual during a taxation year means a person who

 (a) is supported by the individual during the year;

 (b) during the year, lives ordinarily with the individual or is deemed to live ordinarily with the individual under the second paragraph; and

 (c) is the child, grandchild, brother, sister, nephew, niece, uncle, aunt, great-uncle, great-aunt, father, mother or any other direct ascendant of the individual or of the spouse of the individual.

For the purposes of subparagraph b of the first paragraph, a person who, during a year, does not live ordinarily with the individual and who, during the year, is a dependant of the individual by reason of mental or physical infirmity, is deemed to ordinarily live with that individual during that year, except if the person has not been resident in Canada at any time in the year where the person is not the child or grandchild of the individual or of the spouse of the individual.

2005, c. 1, s. 169.

CHAPTER I.0.3.1 
Repealed, 2005, c. 1, s. 170.
1993, c. 64, s. 73; 1997, c. 14, s. 290; 2005, c. 1, s. 170.

752.0.18.1. (Repealed).

1993, c. 64, s. 73; 1997, c. 14, s. 290; 1997, c. 85, s. 330; 2001, c. 51, s. 63; 2005, c. 1, s. 170.

752.0.18.2. (Repealed).

1997, c. 14, s. 118; 1997, c. 85, s. 134; 1999, c. 83, s. 97; 2000, c. 39, s. 264; 2001, c. 51, s. 64; 2002, c. 40, s. 70; 2003, c. 9, s. 87; 2005, c. 1, s. 170.

CHAPTER I.0.3.2 
TAX CREDITS FOR DUES TO A PROFESSIONAL ASSOCIATION OR TO CERTAIN OTHER ENTITIES AND FOR A CONTRIBUTION TO THE OFFICE DES PROFESSIONS DU QUÉBEC
1997, c. 14, s. 118.

752.0.18.3. An individual who, in a taxation year, performs the duties of an office or employment may deduct, from the individual's tax otherwise payable for the year under this Part, an amount equal to the amount obtained by multiplying 10% by the aggregate of all amounts each of which is an amount paid by the individual in the year, to the extent that the individual has not been reimbursed, and is not entitled to be reimbursed, in respect of the amount by the entity to which it is paid, or an amount paid on behalf of the individual in the year, if the amount is required to be included in computing the individual's income for the year, as any of the following dues or contributions, provided the amount may reasonably be regarded as relating to the office or employment:

 (a) annual professional membership dues the payment of which was necessary to maintain a professional status recognized by statute;

 (b) annual dues the payment of which was necessary to maintain membership in an association of employees within the meaning of the Labour Code (chapter C-27);

 (c) annual dues that were retained by the individual's employer from the individual's remuneration in accordance with a collective agreement and paid to an association of employees within the meaning of the Labour Code of which the individual was not a member;

 (d) dues to a parity or advisory committee or similar body, the payment of which was required under the Act respecting collective agreement decrees (chapter D-2) or under similar laws of a province other than Québec by reason of the individual's employment for the year;

 (e) annual dues to the Commission de la construction du Québec, the payment of which was required under the Act respecting labour relations, vocational training and workforce management in the construction industry (chapter R-20) by reason of the duties of an office or employment performed by the individual in the year;

 (f) annual dues the payment of which was necessary to maintain membership in an association of employees recognized by the Minister as an association of employees the primary object of which is to study, safeguard and promote the economic interests of its members;

 (g) annual dues the payment of which was necessary to maintain membership in an artists' association recognized by the Minister on the recommendation of the Minister of Culture and Communications;

 (h) a contribution the individual was required to pay under section 10 of the Act to amend the Professional Code (1995, chapter 50) or section 196.2 of the Professional Code (chapter C-26);

 (i) annual dues the payment of which is necessary to maintain a taxi driver's permit, within the meaning of the Act respecting transportation services by taxi (chapter S-6.01).

1997, c. 14, s. 118; 1997, c. 85, s. 330; 2001, c. 51, s. 65; 2003, c. 9, s. 88; 2007, c. 3, s. 72; 2008, c. 11, s. 185; 2009, c. 15, s. 146; 2015, c. 21, s. 294; 2015, c. 24, s. 103.

752.0.18.4. Where, in a particular taxation year, an individual pays, in relation to the duties of an office or employment performed by him in the preceding taxation year, an amount as dues referred to in any of paragraphs b to g and i of section 752.0.18.3, the individual is deemed, in respect of that amount, to have performed the duties of that office or employment in the particular taxation year.

The presumption established in the first paragraph does not apply in respect of an amount paid by an individual in a particular taxation year, in relation to the duties of an office or employment performed by him in the preceding taxation year, as dues referred to in paragraph f of section 752.0.18.3, where the individual included, in the aggregate referred to in that section for the preceding taxation year, an amount paid by him in that year, in relation to the office or employment, as dues referred to in any of paragraphs b to e and i of that section.

1997, c. 14, s. 118; 2005, c. 1, s. 171.

752.0.18.5. Where, in a taxation year, an individual pays, in relation to the duties of an office or employment performed by him in the year, an amount as dues referred to in any of paragraphs b to e and i of section 752.0.18.3 and includes that amount in the aggregate referred to in that section for the year, he shall not include, in that aggregate, an amount paid by him in the year, in relation to that office or employment, as dues referred to in paragraph f of that section.

1997, c. 14, s. 118; 2005, c. 1, s. 172.

752.0.18.6. The dues referred to in paragraphs a, b, d to g and i of section 752.0.18.3 do not include the portion thereof that is, in effect, levied under a retirement plan, a plan for annuities, insurance or similar benefits, or for any other purpose not directly related to the ordinary operating expenses of the entity to which they were paid or that corresponds to the Québec sales tax or the goods and services tax in respect of such dues.

However, where an individual is not entitled to a rebate of the Québec sales tax under the Act respecting the Québec sales tax (chapter T-0.1) or of the goods and services tax under the Excise Tax Act (Revised Statutes of Canada, 1985, chapter E-15) in respect of dues referred to in paragraph a of section 752.0.18.3, the amount of the dues includes the part thereof that corresponds to the Québec sales tax or the goods and services tax in respect of such dues.

1997, c. 14, s. 118; 2002, c. 40, s. 71; 2005, c. 1, s. 173.

752.0.18.7. Where, in a taxation year, an individual pays, in relation to the duties of an office or employment performed by him in the year, an amount as dues or a contribution described in section 752.0.18.3, he shall not include that amount in the aggregate referred to in that section for the year if all of his income for the year from that office or employment is not required to be included in computing his income for the year or is deductible in computing his taxable income for the year under any of sections 725, 737.16, 737.18.10, 737.18.34, 737.21, 737.22.0.0.3, 737.22.0.0.7, 737.22.0.3, 737.22.0.4.7, 737.22.0.7 and 737.22.0.10.

1997, c. 14, s. 118; 1997, c. 85, s. 135; 1999, c. 83, s. 98; 2000, c. 39, s. 264; 2002, c. 40, s. 72; 2003, c. 9, s. 89; 2013, c. 10, s. 54.

752.0.18.8. An individual may deduct, from the individual's tax otherwise payable for a taxation year under this Part, an amount equal to the amount obtained by multiplying 10% by the aggregate of all amounts each of which is an amount that would, but for section 134.1, be deductible in computing the individual's income for the year from a business or property as dues or a contribution referred to in any of subparagraphs a to c of the first paragraph of section 134.1 and that has not been taken into account in determining an amount that was deducted under this section in computing the individual's tax payable under this Part for a preceding taxation year.

1997, c. 14, s. 118; 1997, c. 85, s. 330; 2001, c. 51, s. 66; 2015, c. 24, s. 104.

752.0.18.9. If an amount would, but for section 134.1, be deductible in computing an individual's income for a taxation year from a business or property as dues or a contribution referred to in any of subparagraphs a to c of the first paragraph of that section, the individual shall not include that amount in the aggregate referred to in section 752.0.18.8 for the year if all of the individual's income for the year from that business or property is not required to be included in computing the individual's income for the year or is deductible in computing the individual's taxable income for the year under any of sections 725, 737.16, 737.18.10, 737.18.34 and 737.22.0.10.

1997, c. 14, s. 118; 2000, c. 39, s. 264; 2003, c. 9, s. 90; 2010, c. 25, s. 73.

CHAPTER I.0.3.3 
TAX CREDIT FOR TUITION FEES AND EXAMINATION FEES
1997, c. 85, s. 136.

752.0.18.10. An individual may deduct from the individual's tax otherwise payable for a taxation year under this Part an amount equal to the aggregate of

 (a) the amount obtained by multiplying 8% by the amount by which the amount determined for the year under subparagraph a of the first paragraph of section 752.0.18.13.1 is exceeded by the aggregate of

(i)  the amount of the individual's tuition fees paid in respect of the year or a preceding year if that year is subsequent to the taxation year 2013, where the conditions set out in section 752.0.18.13 are met in respect of that amount and where the individual was, in the year in respect of which those fees are paid, an enrolled student and the fees are paid to one of the following educational institutions:

(1)  an educational institution in Canada that is a university, college or other institution providing post-secondary education, if the fees are paid in respect of an instructional program at the post-secondary school level,

(2)  an educational institution in Canada recognized by the Minister to be an institution providing courses, other than courses designed for university credit, that furnish a person with skills for, or improve a person's skills in, an occupation,

(3)  an educational institution in the United States that is a university, college or other institution providing post-secondary education, if the individual resided in Canada throughout the year near the boundary between Canada and the United States, commuted between the individual's residence and the educational institution and paid the fees in respect of an instructional program at the post-secondary school level, or

(4)  a university outside Canada if the individual pursued full-time studies leading to a degree, for a period of at least three consecutive weeks,

(ii)  the amount of the individual's examination fees paid in respect of the year or a preceding year if that year is subsequent to the taxation year 2013 to a professional order mentioned in Schedule I to the Professional Code (chapter C-26) where the examination is required to allow the individual to become a member of the order and the conditions set out in section 752.0.18.13 are met in respect of that amount,

(iii)  the amount of the individual's examination fees paid in respect of the year or a preceding year if that year is subsequent to the taxation year 2013 to a professional organization in Canada or the United States, where the conditions set out in section 752.0.18.13 are met in respect of that amount and the individual must pass the examination in order to

(1)  be issued a licence or permit to practise by a professional order mentioned in Schedule I to the Professional Code,

(2)  be granted a title by the Canadian Institute of Actuaries, or

(3)  be permitted to take another examination of that professional organization which the individual must pass in order to be issued a licence or permit referred to in subparagraph 1 or be granted a title referred to in subparagraph 2,

(iv)  the amount of the individual's examination fees paid in respect of the year or a preceding year if that year is subsequent to the taxation year 2013 to an educational institution referred to in subparagraph 1 or 2 of subparagraph i, a professional association, a provincial government department or other similar institution, in relation to an examination the individual has taken in the year if

(1)  the conditions set out in section 752.0.18.13 are met in respect of that amount, and

(2)  the examination is required to obtain a professional status recognized under a law of Canada or of a province, or a licence or certification in respect of a trade, where that status, licence or certification allows the individual to practise the profession or trade in Canada,

(v)  the amount of the individual's tuition fees paid in respect of the taxation year 2013 to an educational institution referred to in any of subparagraphs 1, 3 and 4 of subparagraph i if

(1)  the conditions set out in section 752.0.18.13 are met in respect of that amount, and

(2)  the fees are attributable to a term of study that began after 27 March 2013 and in respect of which the individual was an enrolled student,

(vi)  the amount of the individual's tuition fees paid in respect of the taxation year 2013 to an educational institution referred to in subparagraph 2 of subparagraph i if

(1)  the conditions set out in section 752.0.18.13 are met in respect of that amount, and

(2)  the fees are attributable to training, other than training that is part of an instructional program at the post-secondary school level, in which the individual enrolled after 28 March 2013, and

(vii)  the amount of the individual's examination fees paid in respect of the taxation year 2013, in relation to an examination the individual has taken in the year and after 30 April 2013 if

(1)  the conditions set out in section 752.0.18.13 are met in respect of that amount, and

(2)  the examination fees would be referred to in any of subparagraphs ii to iv if that subparagraph were read without reference to “in respect of the year or a preceding year if that year is subsequent to the taxation year 2013”; and

 (b) the amount obtained by multiplying 20% by the amount by which the amount determined for the year under subparagraph b of the first paragraph of section 752.0.18.13.1 is exceeded by the aggregate of

(i)  the amount of the individual's tuition fees that would be referred to in subparagraph i of paragraph a if

(1)  the portion of that subparagraph i before subparagraph 1 were read as if “if that year is subsequent to the taxation year 2013” were replaced by “if that year is subsequent to the taxation year 1996 and precedes the taxation year 2013”, and

(2)  subparagraph 4 of that subparagraph i were read as if “three consecutive weeks” were replaced by “thirteen consecutive weeks” in respect of fees referred to in that subparagraph 4 and paid for a taxation year preceding the taxation year 2011,

(ii)  the amount of the individual's examination fees that would be referred to in subparagraph ii of paragraph a if that subparagraph ii were read as if “if that year is subsequent to the taxation year 2013” were replaced by “if that year is subsequent to the taxation year 1996 and precedes the taxation year 2013”,

(iii)  the amount of the individual's examination fees that would be referred to in subparagraph iii of paragraph a if the portion of that subparagraph iii before subparagraph 1 were read as if “if that year is subsequent to the taxation year 2013” were replaced by “if that year is subsequent to the taxation year 2004 and precedes the taxation year 2013”,

(iv)  the amount of the individual's examination fees that would be referred to in subparagraph iv of paragraph a if the portion of that subparagraph iv before subparagraph 1 were read as if “if that year is subsequent to the taxation year 2013” were replaced by “if that year is subsequent to the taxation year 2010 and precedes the taxation year 2013”,

(v)  the amount of the individual's tuition fees that would be referred to in subparagraph v of paragraph a if subparagraph 2 of that subparagraph v were read as if “after 27 March 2013” were replaced by “before 28 March 2013”,

(vi)  the amount of the individual's tuition fees that would be referred to in subparagraph vi of paragraph a if subparagraph 2 of that subparagraph vi were read as if “after 28 March 2013” were replaced by “before 29 March 2013”, and

(vii)  the amount of the individual's examination fees that would be referred to in subparagraph vii of paragraph a if the portion of that subparagraph vii before subparagraph 1 were read as if “after 30 April 2013” were replaced by “before 1 May 2013”.

1997, c. 85, s. 136; 2000, c. 5, s. 168; 2001, c. 51, s. 67; 2003, c. 2, s. 226; 2006, c. 13, s. 58; 2009, c. 5, s. 290; 2012, c. 8, s. 122; 2015, c. 21, s. 295.

752.0.18.10.1. For the purposes of section 752.0.18.10, the tuition fees of an individual include ancillary fees and charges that are paid to an educational institution referred to in subparagraph 1 of subparagraph i of paragraph a of section 752.0.18.10 in respect of the individual’s enrolment in a program at a post-secondary school level, but do not include

 (a) any fee or charge to the extent that it is levied in respect of

(i)  a student association,

(ii)  property to be acquired by students,

(iii)  services not ordinarily provided at educational institutions in Canada that offer courses at a post-secondary school level,

(iv)  (subparagraph repealed);

(v)  the construction, renovation or maintenance of any building or facility, except to the extent that the building or facility is owned by the educational institution and used to provide

(1)  courses at the post-secondary school level, or

(2)  services for which, if fees or charges in respect of the services were required to be paid by all students of the educational institution, the fees or charges would be included because of this section in the fees for an individual's tuition; and

 (b) any fee or charge for a taxation year that, but for this paragraph, would be included because of this section in the fees for the individual's tuition and that is not required to be paid by all of the educational institution's full-time students, where the individual is a full-time student at the educational institution, and all of the educational institution's part-time students, where the individual is a part-time student at the educational institution, to the extent that the total amount for the year of all such fees and charges paid in respect of the individual's enrolment at the institution exceeds $250.

2000, c. 5, s. 169; 2001, c. 51, s. 68; 2002, c. 40, s. 73; 2015, c. 21, s. 296.

752.0.18.10.2. For the purposes of section 752.0.18.10, the examination fees of an individual include ancillary fees and charges, other than fees and charges included in section 752.0.18.10.1, that are paid to an educational institution referred to in subparagraph 1 of subparagraph i of paragraph a of section 752.0.18.10, a professional order referred to in subparagraph ii of that paragraph, a professional organization referred to in subparagraph iii of that paragraph, or a professional association, a provincial government department or other similar institution referred to in subparagraph iv of that paragraph, in relation to an examination taken by the individual, but do not include any fee or charge to the extent that it is levied in respect of

 (a) property to be acquired by an individual;

 (b) the construction, renovation or maintenance of any building or facility; or

 (c) any fee or charge for a taxation year that, but for this paragraph, would be included because of this section in the individual's examination fees and that is not required to be paid by all the individuals taking the examination to the extent that the total for the year of all such fees and charges paid in respect of the individual's examination fees exceeds $250.

2012, c. 8, s. 123; 2015, c. 21, s. 297.

752.0.18.11. The deduction provided for in section 752.0.18.10 in respect of an individual is allowable only if the total amount of the tuition fees and the examination fees paid in respect of a taxation year exceeds $100.

1997, c. 85, s. 136.

752.0.18.12. For the purposes of section 752.0.18.10, the amount of tuition fees and examination fees paid in respect of a taxation year does not include

 (a) an amount paid for one of those purposes on the individual's behalf by the individual's employer or by an employer of the individual's father or mother, or an amount reimbursed for one of those purposes to the individual or the individual's father or mother by such an employer, unless the amount is included in computing the individual's income or that of the individual's father or mother, as the case may be;

 (b) where the tuition fees are paid to an educational institution referred to in subparagraph 1 or 2 of subparagraph i of paragraph a of section 752.0.18.10,

(i)  the fees in respect of which the individual is or was entitled to receive a reimbursement or any form of assistance under a program of the State or of Her Majesty in right of Canada or a province, other than Québec, designed to facilitate the entry or re-entry of workers into the labour force, where the amount of the reimbursement or assistance, as the case may be, is not included in computing the individual's income, or

(ii)  the fees paid on the individual's behalf, or in respect of which the individual is or was entitled to receive a reimbursement, under a program of Her Majesty in right of Canada designed to assist athletes, where the payment or reimbursement, as the case may be, is not included in computing the individual's income;

 (c) the fees paid to an educational institution referred to in subparagraph 2 of subparagraph i of paragraph a of section 752.0.18.10 if,

(i)  the individual had not yet reached 16 years of age at the end of the year in respect of which the fees are paid, or

(ii)  it is not reasonable to consider that the purpose of the individual's enrolment at the institution was to furnish the individual with skills for, or to improve the individual's skills in, an occupation;

 (d) the examination fees in respect of which the individual is or was entitled to receive a reimbursement or any form of assistance under a program of the State or of Her Majesty in right of Canada or a province, other than Québec, designed to facilitate the entry or re-entry of workers into the labour force, where the amount of the reimbursement or assistance, as the case may be, is not included in computing the individual's income.

1997, c. 85, s. 136; 1998, c. 16, s. 186; 2000, c. 5, s. 170; 2001, c. 7, s. 169; 2006, c. 13, s. 59; 2012, c. 8, s. 124; 2015, c. 21, s. 298.

752.0.18.12.1. For the application of section 752.0.18.10 to an individual for a particular taxation year, the aggregate of the amounts described in that section does not include the amount of the tuition fees and examination fees paid in respect of a preceding year throughout which the individual was not resident in Canada.

2006, c. 13, s. 60.

752.0.18.13. The conditions to which section 752.0.18.10 refers in respect of an amount for a taxation year in relation to an individual are as follows:

 (a) the amount was not taken into account in determining an amount that was deducted under this chapter in computing the individual's tax payable under this Part for a preceding taxation year;

 (b) the amount was not taken into account in determining an amount that was deducted under section 118.5, 118.8, 118.9 or 118.61 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) in computing the individual's or another person's tax payable under that Act for a preceding taxation year in respect of which the individual was not subject to tax under this Part.

1997, c. 85, s. 136; 2011, c. 6, s. 159.

752.0.18.13.1. For the purpose of determining the amount that an individual may deduct from the individual's tax otherwise payable for a taxation year under section 752.0.18.10, the following rules apply:

 (a) the amount referred to in the portion of paragraph a of section 752.0.18.10 before subparagraph i is equal to the aggregate of all amounts each of which is, subject to subparagraph a of the third paragraph, determined by the formula


A / 8%; and


 (b) the amount referred to in the portion of paragraph b of section 752.0.18.10 before subparagraph i is equal to the aggregate of all amounts each of which is, subject to subparagraph b of the third paragraph, determined by the formula


B / 20%.


In the formulas in subparagraphs a and b of the first paragraph,

 (a) A is an amount transferred by the individual to another individual, in accordance with section 776.41.21, for the year or a preceding taxation year in respect of fees referred to in any of subparagraphs i to iv of paragraph a of section 752.0.18.10; and

 (b) B is an amount transferred by the individual to another individual, in accordance with section 776.41.21, for the year or a preceding taxation year in respect of fees referred to in any of subparagraphs i to iv of paragraph b of section 752.0.18.10.

For the purposes of the first paragraph, if the individual has transferred a particular amount to another individual, in accordance with section 776.41.21, for the taxation year 2013, the following rules apply:

 (a) the amount determined by the formula in subparagraph a of the first paragraph in respect of fees referred to in any of subparagraphs v to vii of paragraph a of section 752.0.18.10 is deemed to be equal to the aggregate of those fees multiplied by the proportion that the particular amount is of the total of

(i)  the amount obtained by multiplying 8% by the aggregate of the fees referred to in any of subparagraphs v to vii of paragraph a of section 752.0.18.10, and

(ii)  the amount obtained by multiplying 20% by the aggregate of the fees referred to in any of subparagraphs v to vii of paragraph b of section 752.0.18.10; and

 (b) the amount determined by the formula in subparagraph b of the first paragraph in respect of fees referred to in any of subparagraphs v to vii of paragraph b of section 752.0.18.10 is deemed to be equal to the aggregate of those fees multiplied by the proportion that the particular amount is of the total of

(i)  the amount obtained by multiplying 8% by the aggregate of the fees referred to in any of subparagraphs v to vii of paragraph a of section 752.0.18.10, and

(ii)  the amount obtained by multiplying 20% by the aggregate of the fees referred to in any of subparagraphs v to vii of paragraph b of section 752.0.18.10.

2009, c. 5, s. 291; 2015, c. 21, s. 299.

752.0.18.14. Where an individual is absent from Canada but resident in Québec for all or part of a taxation year in respect of which tuition fees are paid, subparagraphs 1 and 2 of subparagraph i of paragraph a of section 752.0.18.10 are to be read, in relation to fees paid in respect of that year, without reference to “in Canada”.

1997, c. 85, s. 136; 2015, c. 21, s. 300.

CHAPTER I.0.3.3.1 
CREDIT FOR INTEREST ON STUDENT LOANS
2001, c. 53, s. 119.

752.0.18.15. An individual may deduct from the individual’s tax otherwise payable for a taxation year under this Part an amount equal to the amount obtained by multiplying the percentage specified in section 750.1 for the year by the aggregate of all amounts each of which is an amount of interest, other than any amount paid on account of or in satisfaction of interest under a judgment, paid in the year or in a preceding taxation year that is after the year 1997 by the individual or a person related to the individual on a loan made to, or other amount owing by, the individual under

 (a) the Act respecting financial assistance for education expenses (chapter A-13.3);

 (b) the Canada Student Loans Act (Revised Statutes of Canada, 1985, chapter S-23);

 (c) the Canada Student Financial Assistance Act (Statutes of Canada, 1994, chapter 28); or

 (d) a law of a province other than Québec governing the granting of financial assistance to students at the post-secondary school level.

However, in computing the deduction provided for in the first paragraph in respect of an individual for a taxation year, an amount of interest paid in a preceding taxation year shall not be taken into account if it was taken into account in determining an amount that was deducted under this section for another taxation year or if it was taken into account in determining an amount that was deducted under section 118.62 of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement) for a taxation year in which the individual was not subject to tax under this Part.

2001, c. 53, s. 119.

CHAPTER I.0.4 
Repealed, 2003, c. 9, s. 91.
1989, c. 5, s. 104; 1997, c. 85, s. 137; 2003, c. 9, s. 91.

752.0.19. (Repealed).

1989, c. 5, s. 104; 1993, c. 64, s. 74; 1997, c. 14, s. 290; 1997, c. 85, s. 138; 2000, c. 39, s. 66; 2001, c. 53, s. 120; 2003, c. 9, s. 91.

CHAPTER I.0.5 
Repealed, 1995, c. 63, s. 60.
1989, c. 5, s. 104; 1995, c. 63, s. 60.

752.0.20. (Repealed).

1989, c. 5, s. 104; 1990, c. 7, s. 62; 1991, c. 8, s. 45; 1992, c. 1, s. 56; 1993, c. 19, s. 55; 1993, c. 64, s. 75; 1995, c. 1, s. 83; 1995, c. 63, s. 60.

752.0.21. (Repealed).

1989, c. 5, s. 104; 1990, c. 7, s. 63; 1994, c. 22, s. 265; 1995, c. 63, s. 60.

CHAPTER I.0.6 
ORDERING OF CREDITS
1989, c. 5, s. 104.

752.0.22. For the purpose of computing the tax payable under this Part by an individual, the following provisions are to be applied in the following order: sections 752.0.0.1, 752.0.1, 776.41.14, 752.0.7.4, 752.0.10.0.3, 752.0.18.3, 752.0.18.8, 776.1.5.0.17, 776.1.5.0.18, 752.0.10.0.5, 752.0.10.0.7, 752.0.14, 752.0.11 to 752.0.13.1.1, 776.41.21, 752.0.10.6.1, 752.0.10.6, 752.0.10.6.2, 752.0.18.10, 752.0.18.15, 767 and 776.41.5.

1989, c. 5, s. 104; 1990, c. 7, s. 64; 1993, c. 19, s. 56; 1993, c. 64, s. 76; 1997, c. 14, s. 119; 1997, c. 85, s. 139; 2001, c. 53, s. 121; 2003, c. 9, s. 92; 2005, c. 1, s. 174; 2005, c. 38, s. 154; 2006, c. 36, s. 76; 2009, c. 5, s. 292; 2011, c. 34, s. 37; 2012, c. 8, s. 125; 2015, c. 21, s. 301; 2015, c. 24, s. 105.

CHAPTER I.0.7 
INDIVIDUALS RESIDENT IN QUÉBEC AND CARRYING ON BUSINESS OUTSIDE QUÉBEC IN CANADA AND INDIVIDUALS RESIDENT IN CANADA OUTSIDE QUÉBEC AND CARRYING ON BUSINESS IN QUÉBEC
1989, c. 5, s. 104.

752.0.23. Where an individual is referred to in the second paragraph of section 22 or 25, the amount that the individual may deduct under sections 752.0.0.1 to 752.0.18.15 in computing the individual’s tax payable for a taxation year under this Part shall not exceed the portion of that amount that is represented by the proportion referred to in the second paragraph of section 22 or 25.

1989, c. 5, s. 104; 1993, c. 64, s. 77; 2003, c. 9, s. 93; 2005, c. 1, s. 175.

752.0.23.1. (Repealed).

2005, c. 38, s. 155; 2009, c. 5, s. 293.

CHAPTER I.0.8 
INDIVIDUALS RESIDENT IN CANADA FOR PART OF THE YEAR
1989, c. 5, s. 104.

752.0.24. Where an individual is resident in Canada only during part of a taxation year, the following rules apply for the purpose of computing his tax payable under this Part for the year:

 (a) only the following amounts may be deducted by the individual under sections 752.0.0.1 to 752.0.7, 752.0.10.0.2 to 752.0.10.0.7 and 752.0.10.1 to 752.0.18.15 in respect of any period in the year throughout which the individual was resident in Canada:

(i)  such of the amounts deductible under any of sections 752.0.10.0.2 to 752.0.10.0.7, 752.0.10.6 to 752.0.10.6.2, 752.0.11 to 752.0.13.3, 752.0.18.3, 752.0.18.8, 752.0.18.10 and 752.0.18.15 as can reasonably be considered wholly attributable to such a period, computed as though that period were a whole taxation year, and

(ii)  such of the amounts as the individual would be allowed to deduct for the year under any of sections 752.0.0.1, 752.0.1 to 752.0.7 and 752.0.14 if the deduction were computed with each particular amount in dollars that is referred to in any of those sections and that would otherwise be applicable for the year, with reference to section 750.2, replaced by the proportion of the particular amount that the number of days in that period is of the number of days in the year, and as though that period were a whole taxation year; and

(iii)  (subparagraph repealed);

 (b) the amount deductible for the year under any of sections 752.0.0.1 to 752.0.7, 752.0.10.0.2 to 752.0.10.0.7 and 752.0.10.1 to 752.0.18.15 in respect of a period in the year that is not referred to in subparagraph a is to be computed as though such a period were a whole taxation year.

However, the amount deductible for the year by the individual under any of sections 752.0.0.1 to 752.0.7, 752.0.10.0.2 to 752.0.10.0.7 and 752.0.10.1 to 752.0.18.15 must not exceed the amount that would have been deductible under that section had the individual been resident in Canada throughout the year.

1989, c. 5, s. 104; 1990, c. 7, s. 65; 1993, c. 16, s. 285; 1993, c. 19, s. 57; 1993, c. 64, s. 78; 1995, c. 49, s. 174; 1997, c. 14, s. 120; 1997, c. 85, s. 140; 2001, c. 53, s. 122; 2003, c. 9, s. 94; 2005, c. 1, s. 176; 2005, c. 38, s. 156; 2009, c. 5, s. 294; 2012, c. 8, s. 126; 2013, c. 10, s. 55; 2015, c. 21, s. 302; 2015, c. 24, s. 106.

752.0.24.1. For the purposes of sections 752.0.0.4 to 752.0.0.6, if an individual to whom section 752.0.0.3 applies for a taxation year is resident in Canada only during part of the year, there shall be taken into account, as a covered benefit attributable to the year, only an amount that can reasonably be considered wholly attributable to any period in the year throughout which the individual was resident in Canada.

2005, c. 38, s. 157; 2009, c. 5, s. 295.

CHAPTER I.0.9 
INDIVIDUALS RESIDENT OUTSIDE CANADA
1989, c. 5, s. 104.

752.0.25. Where an individual is referred to in the second paragraph of section 26, sections 752.0.0.1 to 752.0.18.15 do not apply for the purpose of computing the individual's tax payable under this Part for a taxation year.

However, the individual may deduct, in computing the individual's tax payable under this Part for such a taxation year,

 (a) where all or substantially all of the individual's income for the year, as determined under section 28, is included in computing the individual's taxable income earned in Canada for the year, determined with reference to the third paragraph, such portion of the amounts determined under sections 752.0.0.1 to 752.0.10, 752.0.10.0.5, 752.0.10.0.7 and 752.0.11 to 752.0.13.1.1, as is represented by the proportion described in the second paragraph of section 26; and

 (b) such portion of the amounts determined under sections 752.0.10.1 to 752.0.10.26, 752.0.14, 752.0.18.3, 752.0.18.8, 752.0.18.10 and 752.0.18.15, as is represented by the proportion described in the second paragraph of section 26.

For the purposes of subparagraph a of the second paragraph, the taxable income earned in Canada by an individual for a taxation year is determined as if section 1090 were read for the year without reference to its second, third and fourth paragraphs and as if subparagraph a of the first paragraph of that section were replaced, for the year, by the following subparagraph:

“(a) the aggregate of the income from the duties of offices or employments performed by the individual in Canada and the income from the duties of offices or employments performed by the individual outside Canada if the individual was resident in Canada at the time the individual performed the duties;”.

1989, c. 5, s. 104; 1990, c. 7, s. 66; 1993, c. 19, s. 58; 1993, c. 64, s. 79; 1997, c. 14, s. 121; 1997, c. 85, s. 141; 2001, c. 51, s. 69; 2001, c. 53, s. 123; 2003, c. 9, s. 95; 2005, c. 1, s. 177; 2005, c. 38, s. 158; 2012, c. 8, s. 127; 2015, c. 24, s. 107; 2015, c. 36, s. 47.

CHAPTER I.0.10 
SEPARATE RETURNS OF INCOME
1989, c. 5, s. 104.

752.0.26. If a separate fiscal return in respect of an individual is filed under any of sections 429, 681 and 1003 for a particular period and another fiscal return in respect of the same individual is filed under this Part for a period ending in the calendar year in which the particular period ends, for the purpose of computing the tax payable under this Part by the individual in such fiscal returns, the aggregate of the deductions claimed in all such returns under sections 752.0.7.1 to 752.0.18.15 must not exceed the aggregate of the deductions that could be claimed under those sections for the year in respect of the individual if no separate fiscal returns were filed under sections 429, 681 and 1003.

1989, c. 5, s. 104; 1993, c. 64, s. 80; 1997, c. 14, s. 290; 1997, c. 85, s. 142; 2001, c. 53, s. 124; 2005, c. 1, s. 178; 2009, c. 5, s. 296.

CHAPTER I.0.11 
INDIVIDUALS IN BANKRUPTCY
1993, c. 64, s. 81.

752.0.27. Where an individual becomes a bankrupt in a calendar year, the following rules apply for the purpose of determining the amounts deductible under sections 752.0.0.1 to 752.0.7, 752.0.10.0.3, 752.0.10.0.5, 752.0.10.0.7 and 752.0.14 to 752.0.18 in computing the individual's tax payable under this Part for each of the individual's taxation years referred to in section 779 that end in the calendar year:

 (a) in the case of an amount deductible for such a taxation year under sections 752.0.1 to 752.0.7, the individual shall deduct only the portion of that amount otherwise determined that is equal to the proportion that the number of days in that taxation year is of the number of days in the calendar year;

 (b) in the case of an amount that is deductible for such a taxation year under section 752.0.0.1 or 752.0.14, the amount is to be computed as if the particular amount in dollars that is referred to in that section and that would otherwise be applicable for such a taxation year, with reference to section 750.2, was replaced by the proportion of that particular amount that the number of days in that taxation year is of the number of days in the calendar year;

 (b.0.1) in the case of an amount that is deductible for such a taxation year under section 752.0.10.0.3, the amount is to be computed as if

(i)  the particular amount in dollars that is specified in any of the definitions of “excess work income limit”, “excess work income limit of a 63-year-old worker” and “excess work income limit of a 64-year-old worker” in section 752.0.10.0.2 and that would otherwise be applicable for such a taxation year were replaced by the proportion of that particular amount that the number of days in that taxation year is of the number of days in the calendar year,

(ii)  the amount of $5,000 wherever it is specified in section 752.0.10.0.3 were replaced, for the taxation year that is deemed to begin on the date of the bankruptcy, by an amount equal to the amount by which $5,000 exceeds the individual's eligible work income, within the meaning of section 752.0.10.0.2, which is determined for the taxation year that is deemed to end the day before the bankruptcy and which is attributable to a period in that year when the individual is

(1)  65 years of age or over, if the calendar year in which the individual became a bankrupt precedes the year 2016,

(2)  64 years of age or over, if the calendar year in which the individual became a bankrupt is the year 2016, or

(3)  63 years of age or over, if the calendar year in which the individual became a bankrupt follows the year 2016, and

(iii)  the particular amount of the reduction threshold, specified in subparagraph ii of subparagraph d of the second paragraph of section 752.0.10.0.3, that would otherwise be applicable for such a taxation year, were replaced by the proportion of that particular amount that the number of days in the taxation year is of the number of days in the calendar year; and

 (b.1) (subparagraph repealed);

 (c) the amount deductible by the individual in respect of all of those taxation years, under any of those sections, shall not exceed the amount that would have been deductible under that section had the individual not become a bankrupt during the calendar year.

For the purposes of subparagraph a of the first paragraph in respect of each of the taxation years referred to in section 779 that end in the calendar year in which an individual becomes a bankrupt, where the individual includes, in computing the aggregate referred to in section 752.0.1, an amount under paragraph f of section 752.0.1 in respect of a person who reaches 18 years of age in the calendar year and the person is under 18 years of age at the end of the taxation year that is deemed to end the day before the bankruptcy, the following rules apply:

 (a) the number of days in the taxation year that is deemed to end the day before the bankruptcy is deemed to be equal to zero; and

 (b) the number of days in the taxation year that is deemed to begin on the date of the bankruptcy is deemed to be equal to the number of days in the calendar year.

For the purposes of subparagraphs i and iii of subparagraph b.0.1 of the first paragraph in respect of each of the taxation years referred to in section 779 that end in the calendar year in which an individual becomes a bankrupt, in computing the proportion described in those subparagraphs, no account is to be taken of the days in that taxation year and that calendar year on which the individual is not at least

 (a) 65 years of age, for a calendar year preceding the year 2016;

 (b) 64 years of age, for the calendar year 2016; or

 (c) 63 years of age, for a calendar year following the year 2016.

1993, c. 64, s. 81; 1996, c. 39, s. 206; 1997, c. 14, s. 122; 1997, c. 85, s. 143; 2003, c. 9, s. 96; 2005, c. 1, s. 179; 2005, c. 38, s. 159; 2009, c. 5, s. 297; 2011, c. 34, s. 38; 2012, c. 8, s. 128; 2015, c. 24, s. 108; 2015, c. 36, s. 48.

752.0.27.1. For the purposes of sections 752.0.0.4 to 752.0.0.6, if an individual becomes a bankrupt in a calendar year and section 752.0.0.3 applies in respect of the individual for each of the individual's taxation years referred to in section 779 that end in the calendar year, there shall be taken into account, as a covered benefit attributable to any of those taxation years, only an amount that is wholly attributable to that taxation year.

2005, c. 38, s. 160; 2009, c. 5, s. 298.

CHAPTER I.1 
Repealed, 2001, c. 53, s. 125.
1984, c. 15, s. 175; 2001, c. 53, s. 125.

DIVISION I 
Repealed, 2001, c. 53, s. 125.
1984, c. 15, s. 175; 2001, c. 53, s. 125.

752.1. (Repealed).

1984, c. 15, s. 175; 1986, c. 15, s. 115; 1986, c. 72, s. 11; 1989, c. 5, s. 105; 2001, c. 53, s. 125.

DIVISION II 
Repealed, 2001, c. 53, s. 125.
1984, c. 15, s. 175; 2001, c. 53, s. 125.

752.2. (Repealed).

1984, c. 15, s. 175; 1985, c. 25, s. 127; 1986, c. 15, s. 116; 1986, c. 72, s. 12; 1988, c. 4, s. 61; 1989, c. 5, s. 106; 1995, c. 63, s. 61; 1997, c. 31, s. 80; 2001, c. 53, s. 125.

DIVISION III 
Repealed, 2001, c. 53, s. 125.
1984, c. 15, s. 175; 2001, c. 53, s. 125.

752.3. (Repealed).

1984, c. 15, s. 175; 2001, c. 53, s. 125.

752.4. (Repealed).

1984, c. 15, s. 175; 2001, c. 53, s. 125.

752.5. (Repealed).

1984, c. 15, s. 175; 1997, c. 31, s. 81; 2000, c. 39, s. 67; 2001, c. 53, s. 125.

CHAPTER I.2 
Repealed, 1989, c. 5, s. 107.
1986, c. 15, s. 117; 1989, c. 5, s. 107.

DIVISION I 
Repealed, 1989, c. 5, s. 107.
1986, c. 15, s. 117; 1989, c. 5, s. 107.

752.6. (Repealed).

1986, c. 15, s. 117; 1986, c. 103, s. 9; 1988, c. 4, s. 62; 1989, c. 5, s. 107.

752.7. (Repealed).

1986, c. 15, s. 117; 1989, c. 5, s. 107.

752.8. (Repealed).

1986, c. 15, s. 117; 1986, c. 103, s. 10; 1989, c. 5, s. 107.

752.9. (Repealed).

1986, c. 15, s. 117; 1986, c. 103, s. 10; 1989, c. 5, s. 107.

752.10. (Repealed).

1986, c. 15, s. 117; 1986, c. 103, s. 10; 1989, c. 5, s. 107.

DIVISION II 
Repealed, 1989, c. 5, s. 107.
1986, c. 15, s. 117; 1989, c. 5, s. 107.

752.11. (Repealed).

1986, c. 15, s. 117; 1989, c. 5, s. 107.

CHAPTER I.3 
ALTERNATIVE MINIMUM TAX CARRY-OVER
1988, c. 4, s. 63.

752.12. An individual may deduct from the amount that, but for this section and sections 752.14 and 766.3.4, would be the individual's tax otherwise payable under this Part for a particular taxation year such amount as the individual may claim not exceeding the lesser of

 (a) the portion of the aggregate of his additional taxes determined under section 752.14 for the 7 taxation years immediately preceding the particular year that was not deducted in computing his tax otherwise payable under this Part for a taxation year preceding the particular year, and

 (b) the amount by which the amount that, but for this section and sections 752.14 and 766.3.4, would be the individual's tax otherwise payable under this Part for the particular year, if such tax were determined under this Book without taking account of sections 772.2 to 772.13.3, 776, 776.1.1 to 776.1.5 and 776.1.5.0.11 to 776.1.5.0.14, exceeds the amount of the minimum tax applicable to that individual for the particular year as determined under section 776.46.

1988, c. 4, s. 63; 1989, c. 5, s. 108; 1990, c. 59, s. 292; 1992, c. 1, s. 57; 1995, c. 63, s. 62; 1997, c. 14, s. 123; 2001, c. 53, s. 126; 2002, c. 9, s. 18; 2010, c. 25, s. 74; 2012, c. 8, s. 129; 2015, c. 21, s. 303.

752.13. (Repealed).

1988, c. 4, s. 63; 1989, c. 5, s. 109.

752.14. For the purposes of section 752.12, additional tax of an individual for a taxation year is the amount by which the individual's minimum tax applicable for the year as determined under section 776.46 exceeds the amount that would be the individual's tax otherwise payable under this Part for the year if such amount were determined under this Book without reference to sections 772.2 to 772.13.3, 776, 776.1.1 to 776.1.5 and 776.1.5.0.11 to 776.1.5.0.14.

1988, c. 4, s. 63; 1989, c. 5, s. 110; 1990, c. 59, s. 293; 1992, c. 1, s. 58; 1995, c. 63, s. 63; 1997, c. 85, s. 144; 1999, c. 83, s. 99; 2001, c. 53, s. 127; 2002, c. 9, s. 19; 2009, c. 5, s. 299; 2010, c. 25, s. 75; 2012, c. 8, s. 130.

752.15. For the purposes of sections 752.12 and 752.14, the minimum tax applicable to an individual for a taxation year, as determined under section 776.46, must be computed, where applicable, by applying thereto the proportion referred to in the second paragraph of section 22, 25 or 26.

1988, c. 4, s. 63; 1989, c. 5, s. 110.

752.15.1. (Repealed).

1997, c. 85, s. 145; 1999, c. 83, s. 100.

752.16. Section 752.12 does not apply in respect of a separate fiscal return of an individual filed under the second paragraph of section 429 or section 681, 784 or 1003.

1988, c. 4, s. 63; 1989, c. 5, s. 110; 2001, c. 7, s. 106; 2001, c. 53, s. 128.

CHAPTER II 
Repealed, 2001, c. 53, s. 129.
2001, c. 53, s. 129.

DIVISION I 
Repealed, 1984, c. 15, s. 176.
1984, c. 15, s. 176.

753. (Repealed).

1972, c. 23, s. 566; 1984, c. 15, s. 176.

754. (Repealed).

1972, c. 23, s. 567; 1972, c. 26, s. 59; 1973, c. 17, s. 88; 1984, c. 15, s. 176.

755. (Repealed).

1972, c. 23, s. 568; 1984, c. 15, s. 176.

756. (Repealed).

1972, c. 23, s. 569; 1972, c. 26, s. 60; 1973, c. 17, s. 89; 1984, c. 15, s. 176.

757. (Repealed).

1972, c. 23, s. 570; 1975, c. 22, s. 210; 1976, c. 17, s. 1; 1978, c. 26, s. 136; 1979, c. 38, s. 23; 1984, c. 15, s. 176.

DIVISION II 
Repealed, 2001, c. 53, s. 129.
2001, c. 53, s. 129.

758. (Repealed).

1972, c. 23, s. 571; 1993, c. 64, s. 82; 2001, c. 53, s. 129.

759. (Repealed).

1972, c. 23, s. 572; 1985, c. 25, s. 128; 1986, c. 19, s. 163; 1989, c. 5, s. 111; 2001, c. 53, s. 129.

760. (Repealed).

1972, c. 23, s. 573; 2001, c. 53, s. 129.

761. (Repealed).

1972, c. 23, s. 574; 1973, c. 17, s. 90; 1995, c. 63, s. 261; 2001, c. 53, s. 129.

762. (Repealed).

1972, c. 23, s. 575; 1984, c. 15, s. 177; 1989, c. 5, s. 112; 2001, c. 53, s. 129.

763. (Repealed).

1972, c. 23, s. 576; 2001, c. 53, s. 129.

764. (Repealed).

1972, c. 23, s. 577; 2001, c. 53, s. 129.

765. (Repealed).

1972, c. 23, s. 578; 2001, c. 53, s. 129.

766. (Repealed).

1972, c. 23, s. 579; 1985, c. 25, s. 129; 1997, c. 14, s. 124; 2001, c. 53, s. 129.

766.1. (Repealed).

1985, c. 25, s. 129; 1986, c. 19, s. 164; 2001, c. 53, s. 129.

CHAPTER II.1 
TAX ADJUSTMENT RELATING TO CERTAIN AMOUNTS
1993, c. 16, s. 286; 2005, c. 38, s. 161; 2015, c. 21, s. 304.

DIVISION I 
RETROACTIVE PAYMENTS
2015, c. 21, s. 304.

766.2. An individual's tax otherwise payable for a particular taxation year is to be adjusted in accordance with the second paragraph if

 (a) the individual is not required to include, by reason of the second paragraph of section 312.5, an amount in computing the individual's income for the particular taxation year;

 (a.1) the individual is not required to include, by reason of the second paragraph of section 694.0.0.1, an amount in computing taxable income for the particular taxation year;

 (b) the individual is required to include, by reason of section 694.0.1, an amount in computing the individual's taxable income for the particular taxation year; or

 (c) the individual deducts, by reason of section 725.1.2, an amount in computing the individual's taxable income, or the individual's taxable income earned in Canada as determined under Part II, for the particular taxation year.

The adjustment to which the first paragraph refers is made in the following manner:

 (a) the amount of the adjustment, in relation to the particular taxation year, is equal to the aggregate of all amounts each of which is the amount of the tax adjustment relating to the averaging, determined in respect of the individual, that is attributable to a preceding taxation year that is an eligible taxation year of the individual, hereinafter called the taxation year to which the averaging applies, to which an amount referred to in any of subparagraphs a to c of the first paragraph that the individual receives or pays in the particular taxation year relates, in whole or in part;

 (b) if the amount of the adjustment, in relation to the particular taxation year, determined in accordance with subparagraph a, is greater than or equal to zero, that amount is an amount that the individual is required to add to the individual's tax otherwise payable under this Part for that particular year; and

 (c) if the amount of the adjustment, in relation to the particular taxation year, determined in accordance with subparagraph a, is less than zero, that amount expressed as a positive number is an amount that the individual may deduct from the individual's tax otherwise payable under this Part for that particular year.

The amount of the tax adjustment relating to the averaging, determined in respect of the individual, that is attributable to a taxation year to which the averaging applies, for the purpose of determining the amount of the adjustment in relation to the particular taxation year, is equal to the positive or negative amount determined by the formula


(A - B) + C + D - (E - F).


In the formula in the third paragraph,

 (a) A is the total of the tax that would have been payable by the individual, for the taxation year to which the averaging applies, under this Part and, if the taxation year to which the averaging applies precedes the taxation year 1998, under Part I.1, as it read for that year, if the portion of each amount subject to an averaging mechanism, in relation to the individual for the particular taxation year or a preceding taxation year, that relates to the taxation year to which the averaging applies had been included or deducted in computing the individual's taxable income for the taxation year to which the averaging applies;

 (b) B is the total of the tax payable by the individual, for the taxation year to which the averaging applies, under this Part and, if the taxation year to which the averaging applies precedes the taxation year 1998, under Part I.1, as it read for that year;

 (c) C is the aggregate of the amount by which the amount that a person, other than the individual, has deducted in computing the person's tax otherwise payable under section 752.0.15 for the taxation year to which the averaging applies, as it read before being repealed, in respect of that taxation year, exceeds the amount that the person could have deducted in computing the person's tax otherwise payable under section 752.0.15 for that year if the portion of each amount subject to an averaging mechanism, in relation to the individual for the particular taxation year or a preceding taxation year, that relates to the taxation year to which the averaging applies had been included or deducted in computing the individual's taxable income for the taxation year to which the averaging applies, and the following amount:

(i)  if the taxation year to which the averaging applies is subsequent to the taxation year 2002, but precedes the taxation year 2007, and, in the case of the taxation year 2003 or 2004, the rules set out in Book V.2.1, as it read for that year, did not apply to the individual's eligible spouse for the year, within the meaning of sections 776.41.1 to 776.41.4, the amount by which the amount that the spouse has deducted in computing the spouse's tax otherwise payable for that year under section 776.41.5, exceeds the amount that the spouse could have deducted in computing the spouse's tax otherwise payable for that year under section 776.41.5, if the portion of each amount subject to an averaging mechanism, in relation to the individual for the particular taxation year or a preceding taxation year, that relates to the taxation year to which the averaging applies had been included or deducted in computing the individual's taxable income for that year,

(ii)  if the taxation year to which the averaging applies is the taxation year 2003 or 2004 and the rules set out in Book V.2.1, as it read for that year, did apply to the individual's eligible spouse for the year, within the meaning of sections 776.41.1 to 776.41.4, the amount by which the amount that the spouse has deducted in computing the spouse's tax otherwise payable for that year under section 776.78, as it read for that year, exceeds the amount that the spouse could have deducted in computing the spouse's tax otherwise payable for that year under section 776.78, if the portion of each amount subject to an averaging mechanism, in relation to the individual for the particular taxation year or a preceding taxation year, that relates to the taxation year to which the averaging applies had been included or deducted in computing the individual's taxable income for that year,

(iii)  if the taxation year to which the averaging applies precedes the taxation year 2003 and the rules set out in Book V.2.1, as it read for that year, did apply to the individual's spouse for the year, the amount by which the amount that the spouse has deducted in computing the spouse's tax otherwise payable for that year under section 776.78, as it read for that year, exceeds the amount that the spouse could have deducted in computing the spouse's tax otherwise payable for that year under section 776.78, if the portion of each amount subject to an averaging mechanism, in relation to the individual for the particular taxation year or a preceding taxation year, that relates to the taxation year to which the averaging applies had been included or deducted in computing the individual's taxable income for that year,

(iv)  if the taxation year to which the averaging applies precedes the taxation year 2003 and subparagraph iii does not apply, the amount by which the amount that the individual's spouse has deducted in computing the spouse's tax otherwise payable for that year under section 752.0.19, as it read for that year, exceeds the amount that the spouse could have deducted in computing the spouse's tax otherwise payable for that year under section 752.0.19, if the portion of each amount subject to an averaging mechanism, in relation to the individual for the particular taxation year or a preceding taxation year, that relates to the taxation year to which the averaging applies had been included or deducted in computing the individual's taxable income for that year; and

(v)  if the taxation year to which the averaging applies is subsequent to the taxation year 2006, the aggregate of

(1)  the amount by which the amount that the individual's eligible spouse for the year, within the meaning of sections 776.41.1 to 776.41.4, has deducted in computing the spouse's tax otherwise payable for that year under section 776.41.5, exceeds the amount that the spouse could have deducted in computing the spouse's tax otherwise payable for that year under section 776.41.5, if the portion of each amount subject to an averaging mechanism, in relation to the individual for the particular taxation year or a preceding taxation year, that relates to the taxation year to which the averaging applies had been included or deducted in computing the individual's taxable income for that year,

(2)  the amount by which the amount that a person, other than the individual, has deducted in computing the person's tax otherwise payable under section 776.41.14 for the taxation year to which the averaging applies, exceeds the amount that the person could have deducted in computing the person's tax otherwise payable for that year under section 776.41.14, if the portion of each amount subject to an averaging mechanism, in relation to the individual for the particular taxation year or a preceding taxation year, that relates to the taxation year to which the averaging applies had been included or deducted in computing the individual's taxable income for that year, and

(3)  the amount by which the amount that a person, other than the individual, has deducted in computing the person's tax otherwise payable under section 776.41.21 for the taxation year to which the averaging applies, exceeds the amount that the person could have deducted in computing the person's tax otherwise payable for that year under section 776.41.21, if the portion of each amount subject to an averaging mechanism, in relation to the individual for the particular taxation year or a preceding taxation year, that relates to the taxation year to which the averaging applies had been included or deducted in computing the individual's taxable income for that year;

 (d) D is the amount by which the amount that would be determined under subparagraph a for the taxation year to which the averaging applies, if the portion of each amount subject to an averaging mechanism, to which subparagraph a refers, that relates to the taxation year to which the averaging applies was determined without taking into account the portion of the amounts referred to in the first paragraph of section 1029.8.50 that relates to the taxation year to which the averaging applies in respect of which the individual is deemed to have paid an amount to the Minister under section 1029.8.50 for the particular taxation year, exceeds the amount determined under subparagraph a for the taxation year to which the averaging applies;

 (e) E is the aggregate of all amounts each of which is the amount of the tax adjustment relating to the averaging, determined in respect of the individual, that may reasonably be attributed to the taxation year to which the averaging applies and that is determined for a taxation year preceding the particular taxation year; and

 (f) F is the aggregate of all amounts each of which is an amount determined under subparagraph d, in respect of the taxation year to which the averaging applies, for a taxation year preceding the particular taxation year.

For the purpose of determining any amount under the third and fourth paragraphs, the following rules apply:

 (a) the proportion referred to in the second paragraph of section 22 for any taxation year to which the averaging applies is deemed to be equal to 1;

 (b) if the individual was resident in Canada but outside Québec on the last day of a taxation year to which the averaging applies, the individual is deemed to have been resident in Québec on the last day of that year; and

 (c) if the amount referred to in subparagraph c of the first paragraph includes the amount determined under the fourth paragraph of section 725.1.2, the latter amount is deemed to relate, in the same proportion, to each of the taxation years subsequent to the taxation year 1985 that precede the particular taxation year.

For the purpose of applying this Part to any taxation year,

 (a) an amount that is not otherwise deducted in computing an individual's taxable income or tax payable under this Part for a taxation year to which the averaging applies, but that is deducted for the purpose of establishing the amount determined in respect of the individual under any of subparagraphs a, c and d of the fourth paragraph for that taxation year, is deemed, for the application of this Part to any taxation year, to have been deducted in computing the individual's taxable income or tax payable under this Part for the taxation year to which the averaging applies, including when establishing the amount determined in respect of the individual for another taxation year under any of subparagraphs a, c and d of the fourth paragraph or under subparagraph a or d of the second paragraph of section 766.3.2 or subparagraph b of the third paragraph of that section;

 (b) an amount that is otherwise deducted in computing an individual's taxable income or tax payable under this Part for a taxation year that is subsequent to the taxation year to which the averaging applies may not be taken into account for the purpose of establishing the amount determined in respect of the individual under any of subparagraphs a, c and d of the fourth paragraph for the taxation year to which the averaging applies; and

 (c) an amount that, under subparagraph a of the sixth paragraph of section 766.3.2, is deemed deducted in computing an individual's taxable income or tax payable under this Part for a taxation year to which the averaging applies, because it is deducted in that computation for the purpose of establishing the amount determined in respect of the individual under subparagraph a or d of the second paragraph of section 766.3.2 or subparagraph b of the third paragraph of that section for the taxation year to which the averaging applies, may not be taken into account for the purpose of establishing the amount determined in respect of the individual under any of subparagraphs a, c and d of the fourth paragraph for that taxation year.

For the purposes of the fourth paragraph, “amount subject to an averaging mechanism”, in relation to an individual for a taxation year, means an amount that is received or paid by the individual in the year and that is referred to in any of subparagraphs a to c of the first paragraph or an amount paid by the individual in the year and in respect of which the first paragraph of section 1029.8.50 applies, except, in respect of a taxation year to which the averaging applies and that ends before 1 January 2003, such an amount received or paid in a taxation year that ends before 1 January 2004.

1993, c. 16, s. 286; 1995, c. 1, s. 84; 1997, c. 14, s. 125; 1997, c. 85, s. 146; 2002, c. 40, s. 74; 2005, c. 38, s. 162; 2009, c. 5, s. 300; 2009, c. 15, s. 147; 2011, c. 6, s. 160; 2015, c. 21, s. 305.

766.2.1. If section 766.2 applies in respect of an amount referred to in any of subparagraphs a, a.1 and c of the first paragraph of section 766.2 that an individual receives in a particular taxation year and that relates, in whole or in part, to an individual's eligible taxation year, in this section referred to as the affected taxation year, that is before the taxation year that precedes the particular taxation year, the individual shall add to the individual's tax otherwise payable under this Part for the particular taxation year, an amount equal to the aggregate of all amounts each of which is equal to the amount of interest that would be computed, in respect of an affected taxation year, in accordance with the second paragraph of section 28 of the Tax Administration Act (chapter A-6.002) for the period beginning on 1 May of the year following the affected taxation year and ending before the beginning of the particular taxation year, on the portion of the amount of the tax adjustment relating to the averaging that is attributable to the affected taxation year, determined in accordance with the third paragraph of section 766.2 in respect of the individual, that exceeds the amount determined under subparagraph d of the fourth paragraph of section 766.2, in respect of the individual and in relation to the affected taxation year, if that excess amount were a refund due by the Minister under a fiscal law.

2005, c. 38, s. 163; 2009, c. 5, s. 301; 2010, c. 31, s. 175.

766.2.2. For the purposes of sections 766.2 and 766.2.1, eligible taxation year of an individual means a taxation year throughout which the individual was resident in Canada, other than a taxation year that ends in a calendar year in which the individual became a bankrupt or a taxation year included in the averaging period determined in respect of the individual for the purposes of Division II of Chapter II, as it read before being repealed.

2005, c. 38, s. 163; 2010, c. 25, s. 76.

766.3. Sections 766.2 and 766.2.1 apply, for a taxation year, to an individual to whom Book II applies for that year.

In addition, an individual to whom the second paragraph of any of sections 22, 25 and 26 applies may add or deduct in computing the individual’s tax otherwise payable for a taxation year under section 766.2 or 766.2.1 only the portion of the amount determined under section 766.2 or 766.2.1 that is the proportion referred to in the second paragraph of section 22, 25 or 26 that is applicable in respect of the individual for the year.

1995, c. 1, s. 85; 2005, c. 38, s. 164.

DIVISION II 
RETROACTIVELY DETERMINED COVERED BENEFIT
2015, c. 21, s. 306.

766.3.1. In this division, “covered benefit attributable to a preceding taxation year” means an amount determined in a particular taxation year that is attributable to a taxation year preceding the particular year but subsequent to the taxation year 2003, and that is

 (a) if the preceding taxation year is the year 2004, an amount referred to in any of subparagraphs a to c of the first paragraph of section 766.8, other than an amount that replaces income described in paragraph e of section 725; and

 (b) in any other case, an amount that is an income replacement indemnity or a compensation for the loss of financial support, determined under a public compensation plan and established on the basis of net income following an accident, employment injury, bodily injury or death or in order to prevent bodily injury, other than

(i)  an amount that is the net salary or wages paid by an employer, in accordance with the Act respecting industrial accidents and occupational diseases (chapter A-3.001), for each day or part of a day when a worker must be absent from work to receive care or undergo medical examinations in connection with the worker's injury, or to take part in a personal rehabilitation program, or

(ii)  an amount that replaces income described in paragraph e of section 725.

2015, c. 21, s. 306.

766.3.2. If an individual is resident in Québec at the end of a particular taxation year and is the beneficiary of a covered benefit attributable to a preceding taxation year, the individual is required to add to the individual's tax otherwise payable, for the particular year, the amount determined by the formula


A – B + C + D + E – F.


In the formula in the first paragraph,

 (a) A is the tax that would have been payable by the individual under this Part for the preceding year if the covered benefit attributable to the preceding year had been determined in that preceding year;

 (b) B is the tax payable by the individual under this Part for that preceding year;

 (c) C is the amount determined without reference to section 7.5 by the formula


G – H;


 (d) D is the aggregate of

(i)  if the preceding year is subsequent to 2009, the amount by which the amount that a person, other than the individual, deducted under section 776.41.14 in computing the person's tax otherwise payable for that preceding year exceeds the amount that the person could have deducted under section 776.41.14 in computing the person's tax otherwise payable for that preceding year, if the covered benefit attributable to the preceding year had been determined in that year, and

(ii)  the amount by which the amount that a person, other than the individual, deducted under section 776.41.21 in computing the person's tax otherwise payable for that preceding year exceeds the amount that the person could have deducted under section 776.41.21 in computing the person's tax otherwise payable for that preceding year, if the covered benefit attributable to the preceding year had been determined in that year;

 (e) E is the aggregate of all amounts each of which is an amount deemed to have been paid to the Minister under section 1029.8.50.3 on account of the individual's tax payable under this Part for a preceding taxation year because of the application of this section in respect of a covered benefit attributable to the preceding year; and

 (f) F is the aggregate of all amounts each of which is an amount that the individual is required to add to the individual's tax otherwise payable under this Part for a preceding taxation year because of the application of this section in respect of a covered benefit attributable to the preceding year.

In the formula in subparagraph c of the second paragraph:

 (a) G is the amount deducted by the individual's eligible spouse for the preceding taxation year under section 776.78, as it read before being repealed, or section 776.41.5 in computing the tax otherwise payable for that preceding year; and

 (b) H is the amount that could have been deducted by the individual's eligible spouse for the preceding taxation year under section 776.78, as it read before being repealed, or section 776.41.5 in computing the tax otherwise payable for that preceding year, computed without reference to section 776.41.5, if the covered benefit attributable to the preceding year had been determined in that year, without however exceeding the tax otherwise payable for that preceding year.

In subparagraphs c and d of the second paragraph, the individual's eligible spouse for the preceding taxation year means a person who would be the individual's eligible spouse for that year, within the meaning of sections 776.41.1 to 776.41.4, if the portion of section 776.41.1 before paragraph a were read as if “for a taxation year” were replaced by “for a preceding taxation year”.

For the purposes of this section, if an individual dies or ceases to be resident in Canada in the particular taxation year, the last day of that taxation year is the day on which the individual died or the last day on which the individual was resident in Canada.

For the purpose of applying this Part to any taxation year,

 (a) an amount that is not otherwise deducted in computing an individual's taxable income or tax payable under this Part for a taxation year (in this subparagraph referred to as the “preceding year”), but that is deducted for the purpose of establishing the amount determined in respect of the individual under subparagraph a or d of the second paragraph or subparagraph b of the third paragraph for the preceding year, is deemed, for the application of this Part to any taxation year, to have been deducted in computing the individual's taxable income or tax payable, as the case may be, under this Part for the preceding year, including when establishing the amount determined in respect of the individual under subparagraph a or d of the second paragraph or subparagraph b of the third paragraph or under any of subparagraphs a, c and d of the fourth paragraph of section 766.2 for another taxation year;

 (b) an amount that is otherwise deducted in computing an individual's taxable income or tax payable under this Part for a taxation year subsequent to a particular taxation year may not be taken into account for the purpose of establishing the amount determined in respect of the individual under subparagraph a or d of the second paragraph or subparagraph b of the third paragraph for the particular taxation year;

 (c) an amount that, under subparagraph a of the sixth paragraph of section 766.2, is deemed to be deducted in computing an individual's taxable income or tax payable under this Part for a particular taxation year, because it is deducted in that computation for the purpose of establishing the amount determined in respect of the individual under any of subparagraphs a, c and d of the fourth paragraph of section 766.2 for the particular year, may not be taken into account for the purpose of establishing the amount determined in respect of the individual under subparagraph a or d of the second paragraph or subparagraph b of the third paragraph for the particular year; and

 (d) an amount that is otherwise deducted in computing an individual's taxable income or tax payable under this Part for a particular taxation year, but that is not deducted for the purpose of establishing the amount determined in respect of the individual under subparagraph a or d of the second paragraph or subparagraph b of the third paragraph for the particular year, is deemed, for the application of this Part to any other taxation year, not to have been deducted in computing the individual's taxable income or tax payable, as the case may be, under this Part for the particular year.

This section does not apply in respect of an individual's separate fiscal return filed under the second paragraph of section 429 or section 681 or 1003.

2015, c. 21, s. 306.

DIVISION III 
TAX ON SPLIT INCOME
2015, c. 21, s. 306.

766.3.3. In this division,

excluded amount, in respect of an individual for a taxation year, means an amount that is an income from, or the taxable capital gain from the disposition of, a property acquired by or for the benefit of the individual as a consequence of the death of

 (a) the individual's father or mother; or

 (b) any other person, if the individual is enrolled as a full-time student during the year at a prescribed educational institution for the purposes of paragraph d of the definition of “trust” in section 890.15, or an individual in respect of whom subparagraphs a to c of the first paragraph of section 752.0.14 apply for the year;

specified individual, in relation to a taxation year, means an individual

 (a) who had not attained the age of 17 years before the year;

 (b) who was resident in Canada throughout the year; and

 (c) whose father or mother was resident in Canada in the year;

split income of a specified individual for a taxation year means the aggregate of all amounts, other than excluded amounts, each of which is

 (a) an amount required to be included in computing the individual's income for the year in respect of taxable dividends received by the individual in respect of shares of the capital stock of a corporation, other than shares listed on a designated stock exchange or shares of a mutual fund corporation, or because of the application of Division IV of Chapter II of Title III of Book III in respect of the ownership by any person of shares of the capital stock of a corporation, other than shares listed on such a stock exchange;

 (b) a portion of an amount included in accordance with paragraph f of section 600 in computing the individual's income for the year, to the extent that the portion

(i)  is not included in an amount described in paragraph a, and

(ii)  can reasonably be considered to be income derived from the provision of property or services by a partnership or trust to or in support of a business carried on by

(1)  a person who is related to the individual at any time in the year,

(2)  a corporation of which a person related to the individual is a specified shareholder at any time in the year, or

(3)  a professional corporation of which a person related to the individual is a shareholder at any time in the year; or

 (c) a portion of an amount included because of section 662 or 663 in respect of a trust, other than a mutual fund trust, in computing the individual's income for the year, to the extent that the portion

(i)  is not included in an amount described in paragraph a, and

(ii)  can reasonably be considered to be in respect of taxable dividends received in respect of shares of the capital stock of a corporation, other than shares listed on a designated stock exchange or shares of a mutual fund corporation, to arise because of the application of Division IV of Chapter II of Title III of Book III in respect of the ownership by any person of shares of the capital stock of a corporation, other than shares listed on such a stock exchange, or to be income derived from the provision of property or services by a partnership or trust to or in support of a business carried on by

(1)  a person who is related to the individual at any time in the year,

(2)  a corporation of which a person related to the individual is a specified shareholder at any time in the year, or

(3)  a professional corporation of which a person related to the individual is a shareholder at any time in the year.

2015, c. 21, s. 306.

766.3.4. A specified individual shall add to the specified individual's tax otherwise payable for a taxation year under this Part an amount equal to 25.75% of the specified individual's split income for the year.

In addition, the proportion referred to for the year in the second paragraph of section 22 or 25, as the case may be, in respect of the individual applies to the amount otherwise determined for the year in respect of the individual under the first paragraph.

2015, c. 21, s. 306.

766.3.5. If a specified individual would have for a taxation year, but for this division, a taxable capital gain (other than an excluded amount) from a disposition of shares (other than shares listed on a designated stock exchange or shares of a mutual fund corporation) that are transferred, either directly or indirectly, in any manner whatever, to a person with whom the specified individual does not deal at arm's length, the amount of the taxable capital gain is deemed not to be a taxable capital gain and twice the amount is deemed to be received by the specified individual in the year as a taxable dividend that is not an eligible dividend.

2015, c. 21, s. 306.

766.3.6. If a specified individual would be, but for this division, required under section 662 or paragraph a of section 663 to include an amount in computing the specified individual's income for a taxation year, to the extent that the amount can reasonably be considered to be attributable to a taxable capital gain (other than an excluded amount) of a trust from a disposition of shares (other than shares listed on a designated stock exchange or shares of a mutual fund corporation) that are transferred, either directly or indirectly, in any manner whatever, to a person with whom the specified individual does not deal at arm's length, section 662 and paragraph a of section 663 do not apply in respect of the amount and twice the amount is deemed to be received by the specified individual in the year as a taxable dividend that is not an eligible dividend.

2015, c. 21, s. 306.

DIVISION IV 
MINIMUM TAX
2015, c. 21, s. 306.

766.3.7. Despite any other provision of this Act, the tax otherwise payable under this Part, for a particular taxation year, by an individual in respect of the year may not be less than the amount determined by the formula


A + B + C.


In the formula in the first paragraph,

 (a) A is the aggregate of all amounts each of which is an amount added in computing the individual's tax otherwise payable for the particular year under sections 766.2 and 766.2.1;

 (b) B is the aggregate of all amounts each of which is an amount added in computing the individual's tax otherwise payable for the particular year under section 766.3.2; and

 (c) C is the amount by which the amount added in computing the individual's tax otherwise payable for the year under section 766.3.4 exceeds the aggregate of all amounts each of which is an amount that is deductible under section 767 or sections 772.2 to 772.13 in computing the individual's tax payable for the year and can reasonably be considered to be in respect of an amount included in computing the individual's split income, within the meaning of section 766.3.3, for the year.

2015, c. 21, s. 306.

CHAPTER II.2 
Repealed, 2005, c. 38, s. 165.
1995, c. 1, s. 85; 2005, c. 38, s. 165.

766.4. (Repealed).

1995, c. 1, s. 85; 1997, c. 85, s. 147; 2005, c. 38, s. 165.

CHAPTER II.3  Repealed, 2015, c. 21, s. 307.
2001, c. 53, s. 130; 2015, c. 21, s. 307.

766.5. (Repealed).

2001, c. 53, s. 130; 2005, c. 38, s. 166; 2010, c. 5, s. 64; 2011, c. 1, s. 40; 2012, c. 8, s. 131; 2015, c. 21, s. 307.

766.6. (Repealed).

2001, c. 53, s. 130; 2015, c. 21, s. 307.

766.7. (Repealed).

2001, c. 53, s. 130; 2005, c. 1, s. 180; 2015, c. 21, s. 307.

766.7.1. (Repealed).

2012, c. 8, s. 132; 2015, c. 21, s. 307.

766.7.2. (Repealed).

2012, c. 8, s. 132; 2015, c. 21, s. 307.

CHAPTER II.4 
TAX ADJUSTMENT RELATING TO A BENEFIT ATTRIBUTABLE TO THE TAXATION YEAR 2004
2005, c. 38, s. 167.

766.8. In this chapter, covered benefit attributable to the taxation year 2004 means an amount determined in that year, other than an amount that is attributable to a period preceding that year and other than an amount that replaces an income referred to in paragraph e of section 725, and that is

 (a) a benefit, other than an excluded benefit, intended to compensate a total or partial disability affecting a person’s capacity to perform the duties of an office or employment or to carry on a business either alone or as a partner actively engaged in the business, that is established on the basis of net income and determined under the Workers’ Compensation Act (chapter A-3), the Act respecting industrial accidents and occupational diseases (chapter A-3.001), the Act to promote good citizenship (chapter C-20) or the Act respecting occupational health and safety (chapter S-2.1);

 (b) a pension established on the basis of net income and determined by the Société de l’assurance automobile du Québec under the Automobile Insurance Act (chapter A-25) or the Public Health Act (chapter S-2.2), except a death benefit paid in respect of a person who suffered bodily injury before 1 January 1990; or

 (c) a payment similar to one of those described in subparagraphs a and b and made under an employees’ or workers’ compensation law of a province, other than Québec, or of Canada in respect of an injury, a disability or death.

For the purposes of subparagraph a of the first paragraph, excluded benefit means

 (a) an amount that is the net salary or wages paid by an employer, in accordance with the Act respecting industrial accidents and occupational diseases, for each day or part of a day when a worker must be absent from work to receive care or undergo medical examinations in connection with the worker’s injury, or to take part in a personal rehabilitation program; or

 (b) an amount that is a financial assistance payment for social stabilization or for economic stabilization under the Regulation respecting social stabilization and economic stabilization programs (chapter A-3.001, r. 14).

2005, c. 38, s. 167.

766.9. An individual who is resident in Québec on the last day of the taxation year 2004 and is the beneficiary of a covered benefit attributable to that year shall add to the individual’s tax otherwise payable, for that year, the lesser of $1,840 and the amount obtained by multiplying 20% by the aggregate of all amounts each of which is an amount determined under any of sections 766.10 to 766.12.

For the purposes of the first paragraph, if an individual dies or ceases to be resident in Canada in the taxation year 2004, the last day of the individual’s taxation year is deemed to be the day on which the individual died or the last day on which the individual was resident in Canada.

This section does not apply in respect of an individual’s separate fiscal return filed under the second paragraph of section 429 or section 681 or 1003.

2005, c. 38, s. 167.

766.10. If section 766.9 applies to an individual in respect of a covered benefit attributable to the taxation year 2004 and the amount of which is determined by the Commission des normes, de l’équité, de la santé et de la sécurité du travail, there shall be included in computing, for that year, the aggregate referred to in the first paragraph of section 766.9, an amount equal to the total of

 (a) in respect of a covered benefit attributable to the year and paid by an employer for the first 14 full days following the beginning of the individual’s disability, the lesser of the amounts determined by the following formulas:

(i)  0.80 × A, and

(ii)  0.90 × B / C × D; and

 (b) in respect of a covered benefit attributable to the year, other than the covered benefit referred to in subparagraph a, for each day of the year for which the covered benefit is determined, in this section referred to as the particular day, the lesser of the amounts determined for the particular day by the following formulas:

(i)  [(0.90 × 0.80 × E / F) − (0.80 × G / F)] × (1 − H), and

(ii)  [(0.90 × I / F) − J] × (1 − H).

In the formulas in the first paragraph,

 (a) A is the total of the covered benefits attributable to the year and paid by the employer for the first 14 full days following the beginning of the individual’s disability;

 (b) B is the amount determined under the third paragraph of section 1015.3 that is applicable for the year;

 (c) C is the number of days in the year, excluding Saturdays and Sundays;

 (d) D is the number of days in the year, excluding Saturdays and Sundays, between the day on which the individual’s disability begins and the day on which the individual returns to work, but without exceeding 14 days;

 (e) E is the annual gross revenue used as a basis for determining, for the particular day, the covered benefit attributable to the year, or, if the covered benefit attributable to the year is adjusted in accordance with section 119 of the Act respecting the Québec Pension Plan (chapter R-9), the amount that would be the annual gross revenue used as a basis for determining, for the particular day, the covered benefit attributable to the year, if it were adjusted according to the same rules as those applicable to the covered benefit;

 (f) F is the number of days in the year;

 (g) G is the annual gross revenue from a suitable employment or employment held, for the particular day;

 (h) H is the percentage that applies for the purpose of reducing, for the particular day, the covered benefit attributable to the year;

 (i) I is the total of the amount that the Commission des normes, de l’équité, de la santé et de la sécurité du travail estimated for the year on account of the amount in dollars that was referred to in the portion of section 752.0.1 before paragraph a, as it applied for the taxation year 2004, and the amount it estimated for the year on account of the flat amount referred to in the second paragraph of section 776.77, as it applied for the taxation year 2004, to the extent that that total is used by the Commission des normes, de l’équité, de la santé et de la sécurité du travail to establish the weighted net income for the purpose of computing the covered benefit attributable to the year; and

 (j) J is the lesser of

(i)  the amount obtained by multiplying 0.80 by the amount obtained by dividing the annual gross revenue from a suitable employment or employment held, for the particular day, by the number of days in the year, and

(ii)  the amount obtained by dividing the recognized amounts used to establish the weighted net income from a suitable employment or employment held, for the particular day, by the number of days in the year.

For the purposes of subparagraph g and subparagraph i of subparagraph j of the second paragraph, annual gross revenue from a suitable employment or employment held, for a particular day, means the annual gross revenue relating to a suitable employment or employment held that is taken into account in determining, for the particular day, the covered benefit attributable to the year, including the annual gross revenue from any benefit paid to the individual, because of a termination of employment, under a law of Québec or of any other jurisdiction, other than the Act respecting industrial accidents and occupational diseases (chapter A-3.001), or, if the covered benefit attributable to the year is adjusted in accordance with section 119 of the Act respecting the Québec Pension Plan, the amount that would be the annual gross revenue relating to a suitable employment or employment held that would be taken into account in determining, for the particular day, the covered benefit attributable to the year if, from the year following that for which that gross revenue was last established, it were adjusted according to the same rules as those applicable to the covered benefit.

For the purposes of subparagraph ii of subparagraph j of the second paragraph, recognized amounts used to establish the weighted net income from a suitable employment or employment held, for a particular day, means the total of the amount that the Commission des normes, de l’équité, de la santé et de la sécurité du travail estimated for the year on account of the amount in dollars that was referred to in the portion of section 752.0.1 before paragraph a, as it applied for the taxation year 2004, and the amount it estimated for the year on account of the flat amount referred to in the second paragraph of section 776.77, as it applied for the taxation year 2004, to the extent that that total is used by the Commission to establish the weighted net income from a suitable employment or employment held, for the particular day.

2005, c. 38, s. 167; 2015, c. 15, s. 237.

766.11. If section 766.9 applies to an individual in respect of a covered benefit attributable to the taxation year 2004 and the amount of which is determined by the Société de l’assurance automobile du Québec, there shall be included in computing, for that year, the aggregate referred to in the first paragraph of section 766.9, an amount equal to the aggregate of all amounts each of which is, for each day of the year for which the covered benefit is determined, in this section referred to as the particular day, equal to the lesser of the amounts determined for the particular day by the following formulas:

 (a) {[(0.90 × 0.80 × A / B) − (C × 0.80 × D / B)] × (1 − E)} − F / B; and

 (b) {[(0.90 × G / B) − (C × H)] × (1 − E)} − F / B.

In the formulas in the first paragraph,

 (a) A is the annual gross revenue used as a basis for determining, for the particular day, the covered benefit attributable to the year, or, if the covered benefit attributable to the year is adjusted in accordance with section 119 of the Act respecting the Québec Pension Plan (chapter R-9), the amount that would be the annual gross revenue used as a basis for determining, for the particular day, the covered benefit attributable to the year, if it were adjusted according to the same rules as those applicable to the covered benefit;

 (b) B is the number of days in the year;

 (c) C is,

(i)  if only part of the net income from an employment held is used to reduce, for the particular day, the covered benefit attributable to the year, the percentage attributed under the public compensation plan in respect of that net income, and

(ii)  in any other case, 100%;

 (d) D is the annual gross revenue from a suitable employment or employment held, for the particular day;

 (e) E is the percentage that applies for the purpose of reducing, for the particular day, the covered benefit attributable to the year;

 (f) F is the amount obtained by multiplying 0.80 by the amount that is payable for the year as an old age pension or as a disability benefit payable under a plan established by a jurisdiction, other than Québec, and equivalent to the plan established under the Act respecting the Québec Pension Plan, and that is, in determining, for the particular day, the covered benefit attributable to the year, used by the Société de l’assurance automobile du Québec to reduce the amount of that covered benefit;

 (g) G is the total of $6,150 and the amounts estimated by the Société de l’assurance automobile du Québec for the year 2003, as an employee’s premium under the Employment Insurance Act (Statutes of Canada, 1996, chapter 23) and as an employee’s contribution under the Act respecting the Québec Pension Plan, to the extent that that total is used by the Société to establish the weighted net income for the purpose of computing, for the particular day, the covered benefit attributable to the year; and

 (h) H is the lesser of

(i)  the amount obtained by multiplying 0.80 by the amount obtained by dividing the annual gross revenue from a suitable employment or employment held, for the particular day, by the number of days in the year, and

(ii)  the amount obtained by dividing the recognized amounts used to establish the weighted net income from a suitable employment or employment held, for the particular day, by the number of days in the year.

For the purposes of subparagraph d and subparagraph i of subparagraph h of the second paragraph, annual gross revenue from a suitable employment or employment held, for a particular day, means the annual gross revenue relating to a suitable employment or employment held that is taken into account in determining, for the particular day, the covered benefit attributable to the year, or, if the covered benefit attributable to the year is adjusted in accordance with section 119 of the Act respecting the Québec Pension Plan, the amount that would be the annual gross revenue relating to a suitable employment or employment held that would be taken into account in determining, for the particular day, the covered benefit attributable to the year if, from the year following that for which that gross revenue was last established, it were adjusted according to the same rules as those applicable to the covered benefit.

For the purposes of subparagraph ii of subparagraph h of the second paragraph, recognized amounts used to establish the weighted net income from a suitable employment or employment held, for a particular day, means the total of $6,150 and the amounts estimated by the Société de l’assurance automobile du Québec for the year 2003, as an employee’s premium under the Employment Insurance Act and as an employee’s contribution under the Act respecting the Québec Pension Plan, to the extent that that total is used by the Société to establish the weighted net income from a suitable employment or employment held, for the particular day.

2005, c. 38, s. 167.

766.12. If section 766.9 applies to an individual in respect of a covered benefit attributable to the taxation year 2004 and the amount of which is determined by an entity, other than the Commission des normes, de l’équité, de la santé et de la sécurité du travail and the Société de l'assurance automobile du Québec, there must be included in computing, for that year, the aggregate referred to in the first paragraph of section 766.9, an amount equal to the aggregate of all amounts each of which is, for each day of the year for which the covered benefit is determined (in this section referred to as the “particular day”), equal to the lesser of the amounts determined for the particular day by the following formulas:

 (a) {[(0.80 × A × B/C) - (0.80 × D × E/C)] × (1 - F)} - G/C; and

 (b) {[(A × $9,200/C) - H] × (1 - F)} - G/C.

In the formulas in the first paragraph,

 (a) A is the percentage that applies to the income insured by the public compensation plan for the purpose of determining, for the particular day, the covered benefit attributable to the year;

 (b) B is the annual gross revenue used as a basis for determining, for the particular day, the covered benefit attributable to the year, or, if the covered benefit attributable to the year is adjusted in accordance with the public compensation plan, the amount that would be the annual gross revenue used as a basis for determining, for the particular day, the covered benefit attributable to the year, if it were adjusted according to the same rules as those applicable to the covered benefit;

 (c) C is the number of days in the year for which the covered benefits attributable to the year are determined by the entity referred to in the first paragraph;

 (d) D is

(i)  if only a portion of the income, other than the recognized income on the date of the event giving rise to the covered benefit attributable to the year, is taken into consideration for the purpose of determining, for the particular day, the covered benefit attributable to the year, the percentage attributed under the public compensation plan in respect of that income, and

(ii)  in any other case, 100%;

 (e) E is the annual gross revenue from a suitable employment or employment held, for the particular day;

 (f) F is the percentage that applies for the purpose of reducing, for the particular day, the covered benefit attributable to the year;

 (g) G is the amount obtained by multiplying 0.80 by the amount that is, in determining, for the particular day, the covered benefit attributable to the year, used to reduce the amount of that covered benefit; and

 (h) H is the lesser of

(i)  the amount obtained by multiplying 0.80 by the amount obtained by multiplying the percentage determined for the year under subparagraph d by the amount obtained by dividing the annual gross revenue from a suitable employment or employment held, for the particular day, by the number of days in the year, and

(ii)  the amount obtained by multiplying the percentage determined for the year under subparagraph d by the amount obtained by dividing $9,200 by the number of days in the year.

For the purposes of subparagraph e and subparagraph i of subparagraph h of the second paragraph, “annual gross revenue from a suitable employment or employment held”, for a particular day, means the annual gross revenue relating to a suitable employment or employment held, including any other amount that replaces work income, that is taken into account in determining, for the particular day, the covered benefit attributable to the year, or, if the covered benefit attributable to the year is adjusted in accordance with the public compensation plan, the amount that would be the annual gross revenue relating to a suitable employment or employment held that would be taken into account in determining, for the particular day, the covered benefit attributable to the year if, from the year for which that gross revenue was last established, it were adjusted according to the same rules as those applicable to the covered benefit.

2005, c. 38, s. 167; 2009, c. 5, s. 302; 2015, c. 15, s. 237.

766.13. For the purposes of this chapter, if an individual to whom section 766.9 applies for the taxation year 2004 was resident in Canada only during part of that year, the following rules apply:

 (a) there shall be taken into account, as a covered benefit attributable to that year, only an amount that can reasonably be considered wholly attributable to any period in the year throughout which the individual was resident in Canada; and

 (b) the amount of $1,840 referred to in the first paragraph of section 766.9 is to be replaced by an amount equal to the amount obtained by multiplying $1,840 by the proportion that the number of days in any period of the year throughout which the individual was resident in Canada is of the number of days in the year.

2005, c. 38, s. 167.

766.14. For the purposes of this chapter, if an individual to whom section 766.9 applies for the taxation year 2004 is referred to in the second paragraph of section 22, the amount of $1,840 provided for in the first paragraph of section 766.9 is to be replaced by the amount obtained by multiplying $1,840 by the proportion determined under the second paragraph of section 22 in respect of the individual for the year.

2005, c. 38, s. 167.

766.15. For the purposes of this chapter, if an individual becomes a bankrupt in the calendar year 2004, the following rules apply:

 (a) there shall be taken into account, as a covered benefit attributable to each of the individual’s taxation years referred to in section 779 that end in the calendar year, only an amount that is wholly attributable to that taxation year; and

 (b) the amount of $1,840 provided for in the first paragraph of section 766.9 is to be replaced, for each of the individual’s taxation years referred to in section 779 that end in the calendar year, by the amount obtained by multiplying $1,840 by the proportion that the number of days in that taxation year is of the number of days in the calendar year.

2005, c. 38, s. 167.

CHAPTER II.5  Repealed, 2015, c. 21, s. 308.
2005, c. 38, s. 167; 2015, c. 21, s. 308.

766.16. (Repealed).

2005, c. 38, s. 167; 2015, c. 21, s. 308.

766.17. (Repealed).

2005, c. 38, s. 167; 2009, c. 15, s. 148; 2011, c. 6, s. 161; 2015, c. 21, s. 308.

CHAPTER III 
DEDUCTION IN RESPECT OF TAXABLE DIVIDENDS
1972, c. 23.

767. An individual may deduct from the individual's tax otherwise payable under this Part for a taxation year the aggregate of

 (a) the amount obtained by multiplying 8.319/18 by the amount the individual is required to include in computing the individual's income for the year under subparagraph a of the second paragraph of section 497; and

 (b) the amount obtained by multiplying the amount the individual is required to include in computing the individual's income for the year under subparagraph b of the second paragraph of section 497 by

(i)  17.255/45, for the taxation year 2009,

(ii)  17.136/44, for the taxation year 2010,

(iii)  16.779/41, for the taxation year 2011, and

(iv)  16.422/38, for a taxation year subsequent to the taxation year 2011.

However, where that individual is an individual contemplated in the second paragraph of any of sections 22, 25 or 26, he shall deduct no more than the part of the amount determined under the first paragraph which is equal to the proportion contemplated in the second paragraph of one of the said sections, as the case may be.

The first paragraph does not apply in respect of an amount deducted under paragraph e of section 725 in computing the individual's taxable income for the year or in respect of an amount that is

 (a) an amount included in the part of the individual's income for the year that may reasonably be considered to be earned in the part of the individual's exemption period, within the meaning of section 737.18.6, in relation to an employment that is included in the year;

 (b) the part of an amount, included in the part of the individual's income for the year that may reasonably be considered to be earned in the part of a specified period of the individual, within the meaning of section 737.18.29, in relation to an employment that is included in the year, that is equal to the product obtained by multiplying that amount by the percentage determined under subparagraph a of the second paragraph of section 737.18.34 in respect of that period; or

 (c) the part of an amount, included in the part of the individual's income for the year that may reasonably be considered to be earned in the part of a specified period of the individual, established under the fourth paragraph of section 65 of the Act respecting international financial centres (chapter C-8.3), in relation to an employment that is included in the year, that is equal to the product obtained by multiplying that amount by the percentage determined under subparagraph 1 of the second paragraph of that section 65 in respect of that period.

1972, c. 23, s. 580; 1978, c. 26, s. 137; 1984, c. 15, s. 178; 1986, c. 15, s. 118; 1988, c. 4, s. 64; 1988, c. 18, s. 67; 1989, c. 5, s. 113; 1997, c. 85, s. 148; 1999, c. 86, s. 99; 2000, c. 39, s. 68; 2001, c. 7, s. 107; 2001, c. 53, s. 131; 2003, c. 9, s. 97; 2004, c. 21, s. 197; 2005, c. 38, s. 168; 2009, c. 5, s. 303; 2009, c. 15, s. 149; 2015, c. 21, s. 309.

CHAPTER IV 
TAX PAYABLE BY TRUSTS
1972, c. 23.

768. Despite section 750, the tax payable under this Part for a taxation year by an inter vivos trust, other than a mutual fund trust or a SIFT trust, is equal to the amount obtained by multiplying the percentage specified in section 750.1.1 by its taxable income for the year.

1972, c. 23, s. 581; 1996, c. 39, s. 273; 1997, c. 85, s. 330; 2001, c. 51, s. 70; 2009, c. 5, s. 304; 2013, c. 10, s. 56.

769. Section 768 does not apply if the trust mentioned therein:

 (a) was established before 18 June 1971;

 (b) was resident in Québec on 18 June 1971 and without interruption thereafter until the end of the taxation year;

 (c) did not carry on an eligible business in the taxation year;

 (d) has not received any property by gift since 18 June 1971;

 (d.1) was not a trust to which a contribution, within the meaning assigned by the first paragraph of section 593 as it reads in its application to a taxation year that ends after 31 December 2006, was made after 22 June 2000;

 (e) has not, after 18 June 1971, incurred a debt to any person with whom any beneficiary of the trust was not dealing at arm's length or any other obligation to pay any amount to any such person and has not incurred any such debt or obligations guaranteed by any such person; and

 (f) has not received any property after 17 December 1999 where

(i)  the property was received as a result of a transfer from another trust,

(ii)  section 768 applied to a taxation year of the other trust that began before the property was so received, and

(iii)  no change in the beneficial ownership of the property resulted from the transfer.

1972, c. 23, s. 582; 2003, c. 2, s. 227; 2015, c. 36, s. 49.

770. Despite section 750, the tax payable under this Part by a mutual fund trust, other than a SIFT trust, on its taxable income for a taxation year is equal to the amount obtained by multiplying the percentage specified in section 750.1.1 by its taxable income reduced by the amount by which its taxable capital gains for the year exceed its allowable capital losses for the year and increased by the amounts deducted for the year under section 729.

1972, c. 23, s. 583; 1985, c. 25, s. 130; 1996, c. 39, s. 273; 1997, c. 85, s. 330; 2001, c. 51, s. 71; 2009, c. 5, s. 305; 2013, c. 10, s. 57.

770.0.1. Despite section 750, the tax payable under this Part by a SIFT trust on its taxable income for a taxation year is equal to the amount of tax that would be payable by the trust under section 768 or 770 on its taxable income for the taxation year if

 (a) section 768 or 770 applied to a SIFT trust; and

 (b) the taxable income of the SIFT trust were equal to the amount by which its taxable income otherwise determined exceeds the amount determined in its respect for the year under paragraph b of the definition of “taxable distributions amount” in the first paragraph of section 1129.70.

2009, c. 5, s. 306.

770.1. No deduction may be made under sections 752.0.0.1 to 752.0.10 in computing the tax payable by a trust for a taxation year.

1989, c. 5, s. 114; 2005, c. 1, s. 181.

TITLE II 
TAX PAYABLE BY CORPORATIONS
1972, c. 23; 1997, c. 3, s. 71.

771.  (1) Except as otherwise provided in this Part, the tax payable by a corporation for a taxation year is equal,

(a)  in the case of a deposit insurance corporation described in paragraph b of section 804, to 11.9% of its taxable income for the year;

(b)  (paragraph repealed);

(c)  (paragraph repealed);

(d)  (paragraph repealed);

(d.1)  (paragraph repealed);

(d.2)  in the case of a corporation other than a corporation referred to in paragraph a, to the amount by which the amount obtained by applying the basic rate determined in its respect for the year under section 771.0.2.3.1 to its taxable income for the year exceeds, if the corporation has been throughout the year a Canadian-controlled private corporation, the amount obtained by applying the percentage determined in its respect for the year under section 771.0.2.4 to the amount determined in its respect for the year under section 771.2.1.2;

(d.3)  despite paragraph d.2, in the case of a corporation other than a corporation referred to in paragraph a, for a taxation year for which the corporation is a manufacturing corporation, to the amount by which the amount obtained by applying the basic rate determined in its respect for the year under section 771.0.2.3.1 to its taxable income for the year exceeds, if the corporation has been throughout the year a Canadian-controlled private corporation, the amount obtained by applying the percentage determined in its respect for the year under section 771.0.2.5 to the amount determined in its respect for the year under section 771.2.1.2;

(e)  (paragraph repealed);

(f)  (paragraph repealed);

(g)  (paragraph repealed);

(h)  despite paragraph d.2, in the case of a corporation other than a corporation referred to in paragraph a, for a taxation year for which it is a qualified corporation, to the amount by which the amount obtained by applying the basic rate determined in its respect for the year under section 771.0.2.3.1 to its taxable income for the year exceeds the aggregate of

(i)  the amount obtained by applying the basic rate determined in its respect for the year under section 771.0.2.3.1 to the amount determined in its respect for the year under section 771.8.3, and

(ii)  (subparagraph repealed),

(ii.1)  if the corporation has been throughout the year a Canadian-controlled private corporation, the amount obtained by applying the percentage determined in its respect for the year under section 771.0.2.4 to the amount by which the amount determined in its respect for the year under section 771.2.1.2 exceeds the amount determined in its respect for the year under section 771.8.3,

(iii)  (subparagraph repealed);

(i)  (paragraph repealed);

(j)  despite paragraph d.2, in the case of a corporation other than a corporation referred to in paragraph a, for a taxation year for which it is an exempt corporation, to the amount by which the amount obtained by applying the basic rate determined in its respect for the year under section 771.0.2.3.1 to its taxable income for the year exceeds the aggregate of

(i)  the amount obtained by applying the basic rate determined in its respect for the year under section 771.0.2.3.1 to the amount determined in its respect for the year under section 771.8.5, and

(ii)  (subparagraph repealed),

(iii)  if the corporation was a Canadian-controlled private corporation throughout the year, the amount obtained by applying the percentage determined in its respect for the year under section 771.0.2.4 to the amount that would be determined in its respect for the year under section 771.2.1.2 if the excess amount determined under paragraphs a and b of that section were reduced by the amount determined in its respect for the year under section 771.8.5;

(j.1)  despite paragraph d.2, in the case of a corporation other than a corporation referred to in paragraph a, for a taxation year for which it is a corporation dedicated to the commercialization of intellectual property, to the amount by which the amount obtained by applying the basic rate determined in its respect for the year under section 771.0.2.3.1 to its taxable income for the year exceeds the aggregate of

(i)  the amount obtained by applying the basic rate determined in its respect for the year under section 771.0.2.3.1 to the amount determined in its respect for the year under section 771.8.5.1, and

(ii)  if the corporation was a Canadian-controlled private corporation throughout the year, the amount obtained by applying the percentage determined in its respect for the year under section 771.0.2.4 to the amount that would be determined in its respect for the year under section 771.2.1.2 if the excess amount determined under paragraphs a and b of that section were reduced by the amount determined in its respect for the year under section 771.8.5.1;

(k)  (paragraph repealed).

 (2) For the purposes of section 27, the method of computing the proportion that the business of a corporation carried on in Québec is of the aggregate of the business carried on in Canada or in Québec and elsewhere shall be established by regulation.

1972, c. 23, s. 584; 1980, c. 13, s. 68; 1981, c. 12, s. 8; 1987, c. 21, s. 26; 1989, c. 5, s. 115; 1990, c. 7, s. 67; 1991, c. 8, s. 46; 1992, c. 1, s. 59; 1993, c. 19, s. 59; 1995, c. 1, s. 199; 1995, c. 63, s. 64; 1997, c. 3, s. 33; 1997, c. 85, s. 149; 1999, c. 83, s. 101; 2000, c. 39, s. 69; 2004, c. 21, s. 198; 2005, c. 23, s. 102; 2005, c. 38, s. 169; 2009, c. 5, s. 307; 2010, c. 5, s. 65; 2015, c. 21, s. 310.

771.0.1. (Repealed).

1987, c. 21, s. 27; 1989, c. 5, s. 116; 1990, c. 7, s. 68; 1997, c. 3, s. 71; 2000, c. 39, s. 70.

771.0.1.1. (Repealed).

1990, c. 7, s. 69; 1991, c. 8, s. 47; 1997, c. 3, s. 71; 2000, c. 39, s. 70.

771.0.1.2. (Repealed).

1991, c. 8, s. 48; 1992, c. 1, s. 60; 1997, c. 3, s. 71; 2000, c. 39, s. 70.

771.0.2. (Repealed).

1989, c. 5, s. 117; 1990, c. 59, s. 294; 1995, c. 63, s. 65; 1997, c. 3, s. 71; 2000, c. 39, s. 70.

771.0.2.1. (Repealed).

1992, c. 1, s. 61; 1993, c. 19, s. 60; 1994, c. 22, s. 266; 1995, c. 63, s. 66; 1997, c. 3, s. 71; 1997, c. 85, s. 150; 2000, c. 39, s. 70.

771.0.2.2. For the purposes of sections 771.2.1.2, 771.8.3, 771.8.5 and 771.8.5.1, the amount that must be determined in respect of a corporation for a taxation year under this section is the amount determined in respect of the corporation for the year by the formula


A/(B × C).


In the formula provided for in the first paragraph,

 (a) A is the amount determined for the year in respect of the corporation under sections 772.2 to 772.13;

 (b) B is, in the case of a corporation contemplated in the second paragraph of section 27, the proportion referred to in that second paragraph for the year in respect of the corporation or, in every other case, 1;

 (c) C is the basic rate determined in respect of the corporation for the year under section 771.0.2.3.1.

1993, c. 19, s. 61; 1995, c. 63, s. 67; 1997, c. 3, s. 71; 1997, c. 85, s. 151; 2000, c. 39, s. 71; 2005, c. 38, s. 170; 2009, c. 5, s. 308; 2010, c. 5, s. 66.

771.0.2.3. (Repealed).

2005, c. 38, s. 171; 2009, c. 5, s. 309.

771.0.2.3.1. For the purposes of sections 771 and 771.0.2.2, the basic rate that must be determined in respect of a corporation for a taxation year under this section is equal to

 (a) if the taxation year begins before 1 January 2009, the total of

(i)  the proportion of 16.25% that the number of days in the taxation year that precede 21 February 2007 is of the number of days in the taxation year,

(ii)  the proportion of 9.9% that the number of days in the taxation year that follow 20 February 2007 but precede 1 June 2007 is of the number of days in the taxation year,

(iii)  the proportion of 11.9% if the corporation is a financial institution or an oil refining corporation, or of 9.9% in any other case, that the number of days in the taxation year that follow 31 May 2007 but precede 1 January 2008 is of the number of days in the taxation year,

(iv)  the proportion of 11.9% if the corporation is a financial institution or an oil refining corporation, or of 11.4% in any other case, that the number of days in the taxation year that follow 31 December 2007 but precede 1 January 2009 is of the number of days in the taxation year, and

(v)  the proportion of 11.9% that the number of days in the taxation year that follow 31 December 2008 is of the number of days in the taxation year; and

 (b) if the taxation year begins after 31 December 2008, 11.9%.

2009, c. 5, s. 310.

771.0.2.4. For the purposes of section 771, the percentage that must be determined in respect of a corporation for a taxation year under this section is equal to

 (a) if the taxation year begins before 1 January 2009, the total of

(i)  the proportion of 1.4% that the number of days in the taxation year that precede 24 March 2006 is of the number of days in the taxation year,

(ii)  the proportion of 1.9% that the number of days in the taxation year that follow 23 March 2006 but precede 1 June 2007 is of the number of days in the taxation year,

(iii)  the proportion of 3.9% if the corporation is a financial institution or an oil refining corporation, or of 1.9% in any other case, that the number of days in the taxation year that follow 31 May 2007 but precede 1 January 2008 is of the number of days in the taxation year,

(iv)  the proportion of 3.9% if the corporation is a financial institution or an oil refining corporation, or of 3.4% in any other case, that the number of days in the taxation year that follow 31 December 2007 but precede 1 January 2009 is of the number of days in the taxation year, and

(v)  the proportion of 3.9% that the number of days in the taxation year that follow 31 December 2008 is of the number of days in the taxation year; and

 (b) if the taxation year begins after 31 December 2008, 3.9%.

2005, c. 38, s. 171; 2006, c. 36, s. 77; 2009, c. 5, s. 311.

771.0.2.5. The percentage that is required to be determined for a taxation year for the purposes of paragraph d.3 of subsection 1 of section 771 in respect of a manufacturing corporation is equal,

 (a) if the proportion of the manufacturing or processing activities of the manufacturing corporation for the taxation year is 50% or more and

(i)  the taxation year begins before 1 April 2015, to the total of

(1)  3.9%,

(2)  the proportion of 2% that the number of days in the taxation year that follow 4 June 2014 but precede 1 April 2015 is of the number of days in the taxation year, and

(3)  the proportion of 4% that the number of days in the taxation year that follow 31 March 2015 is of the number of days in the taxation year, or

(ii)  the taxation year begins after 31 March 2015, to 7.9%; and

 (b) if the proportion of the manufacturing or processing activities of the manufacturing corporation for the taxation year is less than 50% and

(i)  the taxation year begins before 1 April 2015, to the total of

(1)  3.9%,

(2)  the percentage determined by the formula


A × (C – 25%)/25%, and


(3)  the percentage determined by the formula


B × (C – 25%)/25%, or


(ii)  the taxation year begins after 31 March 2015, to the total of

(1)  3.9%, and

(2)  the percentage determined by the formula


4% × (C – 25%)/25%.


In the formulas in subparagraph b of the first paragraph,

 (a) A is the proportion of 2% that the number of days in the taxation year that follow 4 June 2014 but precede 1 April 2015 is of the number of days in the taxation year;

 (b) B is the proportion of 4% that the number of days in the taxation year that follow 31 March 2015 is of the number of days in the taxation year; and

 (c) C is the proportion of the manufacturing or processing activities of the manufacturing corporation for the taxation year.

2015, c. 21, s. 311.

771.0.3. (Repealed).

1989, c. 5, s. 117; 1997, c. 3, s. 71; 2000, c. 39, s. 72.

771.0.3.1. (Repealed).

1992, c. 1, s. 62; 1997, c. 3, s. 71; 2000, c. 39, s. 73; 2004, c. 21, s. 199.

771.0.4. (Repealed).

1989, c. 5, s. 117; 2000, c. 39, s. 74.

771.0.4.1. (Repealed).

1992, c. 1, s. 63; 2000, c. 39, s. 74.

771.0.5. (Repealed).

1989, c. 5, s. 117; 1992, c. 1, s. 64; 1997, c. 3, s. 71; 2000, c. 39, s. 74.

771.0.6. (Repealed).

1989, c. 5, s. 117; 1992, c. 1, s. 65; 1997, c. 3, s. 71; 2000, c. 39, s. 75; 2004, c. 21, s. 200.

771.0.7. For the purposes of this Title, a corporation is deemed, for the purpose of determining whether it is associated with one or more other corporations in a taxation year, not to be associated in that year with a corporation which, in that year, is not resident and does not have any establishment in Canada.

1997, c. 85, s. 152.

771.1. In this Title,

biotechnology development centre means a building designated as such by Investissement Québec;

corporation dedicated to the commercialization of intellectual property has the meaning assigned by sections 771.14 and 771.15;

eligibility date of a corporation means

 (a) where the corporation carries on or may carry on its business in an information technology development centre, 26 March 1997;

 (b) where the corporation carries on or may carry on its business in a new economy centre, 10 March 1999; and

 (c) where the corporation carries on or may carry on its business in a biotechnology development centre, 30 March 2001;

eligibility period of a corporation means the five-year period that begins on the day of coming into force of the certificate referred to in paragraph a of section 771.12 that was issued in its respect or, if it is later, on the corporation's eligibility date, unless the corporation ceases to be an exempt corporation,

 (a) at the beginning of a particular taxation year following an acquisition of control referred to in subparagraph f of the first paragraph of section 771.13 that occurred in the preceding taxation year and before the end of the five-year period, in which case “eligibility period” means the part of the five-year period that ends immediately before the acquisition of control;

 (b) at the beginning of a particular taxation year following an election by the corporation under subparagraph g of the first paragraph of section 771.13 to become a specified corporation from a particular day of the preceding taxation year and before the end of the five-year period, in which case “eligibility period” means the part of the five-year period that ends the day before that particular day; or

 (c) in a particular taxation year, other than the one referred to in paragraph a or b, and before the end of the five-year period, in which case “eligibility period” means the part of the five-year period that ends on the last day of the taxation year preceding the particular year;

eligible business, in relation to any business carried on by a corporation, means any business carried on by a corporation other than a specified investment business or a personal services business and includes, except for the purposes of subparagraph a of the second paragraph of section 771.6, subparagraph d of the first paragraph of section 771.8.3 and subparagraph i of subparagraph c of the second paragraph of section 771.8.5, an adventure or concern in the nature of trade;

eligible commercialization business of a corporation, at any time, means an eligible business in respect of which the corporation holds a qualification certificate that was issued by the Minister of Economic Development, Innovation and Export Trade and that is valid at that time;

eligible institute means an eligible public research centre or an eligible university entity, within the meaning of paragraphs a.1 and f of section 1029.8.1;

exempt corporation has the meaning assigned by sections 771.12 and 771.13;

exemption period of a corporation means the period that begins at the beginning of the corporation's first taxation year and ends on the earlier of

 (a) the last day of the five-year period that begins at the beginning of the corporation's first taxation year, and

 (b) the last day of the taxation year preceding the taxation year in which the corporation ceases to be a qualified corporation;

financial institution means a corporation referred to in paragraph a of section 1132;

information technology development centre means a building designated as such by the Minister of Finance;

manufacturing corporation for a taxation year means a corporation the proportion of the manufacturing or processing activities of which for the taxation year is not less than 25%;

new economy centre means one or more buildings within the same region that are designated by Investissement Québec as constituting a marketplace for the new economy;

oil refining corporation for a taxation year means a corporation that, at any time in the year after 31 May 2007, carries on an oil refining business or is the owner or lessee of property used in the carrying on of such a business by another corporation, a partnership or a trust with which the corporation is associated;

proportion of the manufacturing or processing activities of a corporation for a taxation year means the proportion that the amount determined in respect of the corporation for the year under paragraph a of section 5200 of the Income Tax Regulations made under the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) is of the amount determined in respect of the corporation for the year under paragraph b of section 5200 of those Regulations;

qualified corporation has the meaning assigned by sections 771.5 to 771.7;

specified corporation has the meaning assigned by section 1029.8.36.0.17;

specified investment business carried on by a corporation in a taxation year means a business, other than a business carried on by a savings and credit union or a business of leasing property other than immovable property, the principal purpose of which is to derive income from property, including interest, dividends, rents or royalties, unless the corporation employs in the business throughout the year more than five full-time employees, or in the course of carrying on an eligible business, any other corporation associated with it provides financial, administrative, maintenance, managerial or other similar services to the corporation in the year and the corporation could reasonably be expected to require more than five full-time employees if those services had not been provided;

specified partnership income of a corporation for a taxation year means the aggregate of

 (a) the aggregate of all amounts each of which is an amount, in respect of a partnership of which the corporation is a member in the year, equal to the lesser of

(i)  the aggregate of all amounts each of which is an amount, in respect of an eligible business carried on in Canada by the corporation as a member of the partnership, equal to the amount by which the aggregate of all amounts each of which is the corporation's share of the income (determined in accordance with Title XI of Book III) of the partnership from the business for a fiscal period of the business that ends in the year, or an amount included in computing the corporation's income for the year under any of sections 217.19, 217.20 and 217.28 in respect of the business exceeds the aggregate of all amounts each of which is an amount deducted in computing the corporation's income for the year from the business (other than an amount that was deducted by the partnership in computing its income from the business) or in respect of the business under section 217.21 or 217.27, and

(ii)  the proportion of the lesser of $500,000 and the product obtained by multiplying $1,370 by the number of days included in a fiscal period of the partnership that ends in the year that the aggregate of all amounts each of which is the corporation's share of the income, determined in accordance with Title XI of Book III, of the partnership from an eligible business carried on in Canada for a fiscal period that ends in the year is of the aggregate of all amounts each of which is the partnership's income for a fiscal period referred to in subparagraph i from an eligible business carried on in Canada; and

 (b) the lesser of

(i)  the aggregate of the amounts determined in respect of the corporation for the year under subparagraphs i and ii of paragraph a of section 771.2.1.2, and

(ii)  the aggregate of all amounts each of which is an amount, in respect of a partnership of which the corporation is a member in the year, equal to the amount by which the amount determined in respect of the partnership for the year under subparagraph i of paragraph a exceeds the amount determined in respect of the partnership for the year under subparagraph ii of that paragraph;

specified partnership loss of a corporation for a taxation year means the aggregate of all amounts each of which is an amount, in respect of a partnership of which the corporation is a member in the year, equal to the aggregate of

 (a) the aggregate of all amounts each of which is the corporation's share of the loss, determined in accordance with Title XI of Book III, of the partnership for a fiscal period that ends in the year from an eligible business carried on in Canada by the corporation as a member of the partnership; and

 (b) the aggregate of all amounts each of which is the amount by which the aggregate of all amounts each of which is an amount deducted in computing the corporation's income for the year from an eligible business carried on in Canada by the corporation as a member of the partnership, other than an amount that was deducted by the partnership in computing its income from the business, exceeds the aggregate of all amounts each of which is the corporation's share of the income, determined in accordance with Title XI of Book III, of the partnership from the business for a fiscal period that ends in the year;

tax-free period of a corporation means the period beginning at the time of its incorporation and ending

 (a) on the last day of the ten-year period beginning at that time; or

 (b) if it is earlier than the day referred to in paragraph a, on the last day of the taxation year that precedes the taxation year in which the corporation ceases to be a corporation dedicated to the commercialization of intellectual property.

For the purposes of the definition of information technology development centre in the first paragraph, premises designated by Investissement Québec are deemed to be part of a building referred to in that definition.

For the purposes of the definition of new economy centre in the first paragraph, premises designated by Investissement Québec are deemed to form part of a building referred to in that definition.

Despite the definition of “eligibility period” in the first paragraph, the eligibility period of a corporation does not include any day in a taxation year for which the corporation is authorized by Investissement Québec to carry on its business outside the information technology development centre, the new economy centre or the biotechnology development centre that is mentioned in the certificate referred to in paragraph a of section 771.12, if, during that day, none of the activities of its business are carried on in Québec.

For the purposes of the definition of “oil refining corporation” in the first paragraph, the following rules apply for the purpose of determining whether a corporation is associated with a partnership or a trust at any time:

 (a) a partnership is deemed to be a corporation the taxation year of which corresponds to its fiscal period and all the voting shares in the capital stock of which are owned at that time by each member of the partnership in a proportion equal to the agreed proportion in respect of the member for the partnership's fiscal period that includes that time; and

 (b) a trust is deemed to be a corporation all the voting shares in the capital stock of which

(i)  in the case of a testamentary trust under which one or more beneficiaries are entitled to receive all of the income of the trust that arose before the date of death of one or the last surviving of those beneficiaries (in this subparagraph b referred to as the “distribution date”), and under which no other person can, before the distribution date, receive or otherwise obtain the enjoyment of any of the income or capital of the trust,

(1)  if any such beneficiary's share of the income or capital of the trust depends on the exercise by any person of, or the failure by any person to exercise, a power to appoint, and if that time occurs before the distribution date, are owned at that time by the beneficiary, and

(2)  if subparagraph 1 does not apply and if that time occurs before the distribution date, are owned at that time by such a beneficiary in a proportion equal to the proportion that the fair market value of the beneficial interest in the trust of the beneficiary is of the fair market value of the beneficial interests in the trust of all the beneficiaries,

(ii)  if a beneficiary's share of the accumulating income or capital of the trust depends on the exercise by any person of, or the failure by any person to exercise, a power to appoint, are owned at that time by the beneficiary, unless subparagraph i applies and that time occurs before the distribution date,

(iii)  in any case where subparagraph ii does not apply, are owned at that time by the beneficiary in a proportion equal to the proportion that the fair market value of the beneficial interest in the trust of the beneficiary is of the fair market value of all beneficial interests in the trust, unless subparagraph i applies and that time occurs before the distribution date, and

(iv)  in the case of a trust referred to in section 467, are owned at that time by the person referred to in that section from whom a property of the trust or a property for which it was substituted was directly or indirectly received.

1981, c. 12, s. 9; 1987, c. 21, s. 28; 1989, c. 5, s. 118; 1992, c. 1, s. 66; 1995, c. 63, s. 68; 1997, c. 3, s. 71; 1997, c. 85, s. 153; 1998, c. 17, s. 64; 1999, c. 83, s. 102; 2000, c. 39, s. 76; 2001, c. 51, s. 72; 2001, c. 69, s. 12; 2002, c. 9, s. 20; 2003, c. 9, s. 98; 2004, c. 21, s. 201; 2005, c. 23, s. 103; 2005, c. 38, s. 172; 2007, c. 12, s. 86; 2009, c. 5, s. 312; 2009, c. 15, s. 150; 2010, c. 5, s. 67; 2010, c. 25, s. 77; 2015, c. 21, s. 312; 2015, c. 24, s. 109.

771.1.1. In this Title, the income or loss of a corporation for a taxation year from an eligible business carried on by it means the aggregate of

 (a) the income or loss of the corporation for the year from the business, including the income or loss of the corporation for the year that is incident to or pertains to that business or from any property that is used or held principally for the purpose of gaining an income from that business, but excluding a dividend that is deductible under Title VIII of Book IV or under section 845 in computing the taxable income of the corporation for the year; and

 (b) the amount included under section 92.5.2 in computing the income of the corporation for the year.

1987, c. 21, s. 28; 1989, c. 5, s. 118; 1993, c. 64, s. 83; 1994, c. 22, s. 267; 1997, c. 3, s. 71; 2000, c. 39, s. 77.

771.1.1.1. In this Title, where a Minister other than the Minister of Revenue or a body replaces or revokes a certificate, qualification certificate or other similar document, the following rules apply in respect of the document, unless a more specific similar rule applies to it:

 (a) the replaced document is null as of the date of its coming into force or of its deemed coming into force and the new document is deemed, unless it provides otherwise, to come into force as of that date and to have been issued at the time the replaced document was issued or is deemed to have been issued; and

 (b) the revoked document is null as of the effective date of the revocation and is deemed not to have been issued, obtained or held as of that date.

Where a document is, without being replaced, amended by the revocation or replacement of any of its parts or in any other manner, the document before the amendment and the document as amended are deemed, for the purposes of this section, to be separate documents the first of which (referred to as the replaced document) has been replaced by the second (referred to as the new document).

Where, in the circumstances described in the second paragraph, a document is amended only for a part of its period of validity, the new document is deemed to describe both the situation prevailing before the amendment, as proven by the content of the replaced document, and the new situation, as proven by the content of the new document.

2012, c. 8, s. 133.

771.1.2. (Repealed).

1989, c. 5, s. 119; 1997, c. 3, s. 71; 2000, c. 39, s. 78.

771.1.3. (Repealed).

1989, c. 5, s. 119; 1997, c. 3, s. 71; 1997, c. 85, s. 154; 2000, c. 39, s. 78.

771.1.4. (Repealed).

1989, c. 5, s. 119; 1997, c. 3, s. 34; 1997, c. 85, s. 155; 2000, c. 39, s. 78.

771.1.4.1. (Repealed).

1997, c. 85, s. 156; 2000, c. 5, s. 293; 2000, c. 39, s. 78.

771.1.5. (Repealed).

1989, c. 5, s. 119; 1994, c. 22, s. 268; 1995, c. 63, s. 69; 1997, c. 3, s. 35; 1997, c. 85, s. 157; 1999, c. 83, s. 103; 2000, c. 39, s. 78.

771.1.5.1. (Repealed).

1995, c. 63, s. 70; 1997, c. 3, s. 36; 2000, c. 39, s. 78.

771.1.5.2. (Repealed).

1995, c. 63, s. 70; 1997, c. 3, s. 37; 1997, c. 14, s. 126; 2000, c. 39, s. 78.

771.1.5.3. (Repealed).

1995, c. 63, s. 70; 1996, c. 39, s. 207; 1997, c. 3, s. 71; 1997, c. 14, s. 127; 1999, c. 83, s. 104; 2000, c. 39, s. 78.

771.1.6. (Repealed).

1989, c. 5, s. 119; 1992, c. 1, s. 67; 1997, c. 3, s. 71; 2000, c. 39, s. 78.

771.1.7. (Repealed).

1989, c. 5, s. 119; 1997, c. 3, s. 71; 2000, c. 39, s. 78.

771.1.8. (Repealed).

1989, c. 5, s. 119; 1994, c. 22, s. 269; 1997, c. 3, s. 71; 1997, c. 14, s. 128; 2000, c. 39, s. 78.

771.1.9. (Repealed).

1989, c. 5, s. 119; 1997, c. 3, s. 71; 2000, c. 39, s. 78.

771.1.10. (Repealed).

1989, c. 5, s. 119; 1992, c. 1, s. 68; 1993, c. 16, s. 287; 1997, c. 3, s. 71; 1997, c. 31, s. 82; 2000, c. 39, s. 78.

771.1.11. (Repealed).

1989, c. 5, s. 119; 1993, c. 16, s. 288; 1997, c. 3, s. 71; 2000, c. 39, s. 78.

771.2. (Repealed).

1981, c. 12, s. 9; 1983, c. 44, s. 28; 1985, c. 25, s. 131; 1989, c. 5, s. 120.

771.2.1. (Repealed).

1987, c. 21, s. 29; 1989, c. 5, s. 121; 1997, c. 3, s. 71; 2000, c. 39, s. 78.

771.2.1.1. (Repealed).

1992, c. 1, s. 69; 1997, c. 3, s. 71; 2000, c. 39, s. 78.

771.2.1.2. The amount that, for the purposes of paragraphs d.2, d.3 and h of subsection 1 of section 771, is to be determined in respect of a corporation for a taxation year under this section is equal to the least of

 (a) the amount by which the aggregate of all amounts each of which is the income of the corporation for the year from an eligible business carried on by it in Canada, other than the income of the corporation for the year from a business carried on by it as a member of a partnership, and the specified partnership income of the corporation for the year exceeds the aggregate of

(i)  all amounts each of which is a loss of the corporation for the year from an eligible business carried on by it in Canada, other than a loss of the corporation for the year from a business carried on by it as a member of a partnership, and

(ii)  the specified partnership loss of the corporation for the year;

 (b) the amount by which the taxable income of the corporation for the year exceeds the aggregate of the amount determined in respect of the corporation for the year under section 771.0.2.2 and the portion of the corporation’s taxable income for the year that is not, because of an Act of the Legislature of Québec, subject to tax under this Part; and

 (c) the corporation’s business limit for the year.

2005, c. 38, s. 173; 2015, c. 21, s. 313.

771.2.1.3. In this Title, a corporation's business limit for a taxation year is equal to $500,000 unless the corporation is associated in the year with one or more other Canadian-controlled private corporations in which case, except as otherwise provided in this Title, its business limit for the year is equal to zero.

For the purposes of the first paragraph and sections 771.2.1.4 to 771.2.1.8, if two corporations are deemed, under section 21.21, to be associated with each other at any time because they are associated, or deemed to be associated under section 21.21, at that time with the same corporation (in this paragraph referred to as the “third corporation”) and the third corporation is not a Canadian-controlled private corporation at that time or makes a valid election under subsection 2 of section 256 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) after 19 December 2006, in relation to its taxation year that includes that time, not to be associated with either of the other two corporations, the following rules apply:

 (a) the third corporation is deemed not to be associated with either of the other two corporations in that taxation year; and

 (b) the third corporation's business limit for that taxation year is deemed to be equal to zero.

Chapter V.2 of Title II of Book I applies in relation to an election made under subsection 2 of section 256 of the Income Tax Act or in relation to an election made under the second paragraph before 20 December 2006.

2005, c. 38, s. 173; 2009, c. 5, s. 313; 2010, c. 5, s. 68.

771.2.1.4. Despite the first paragraph of section 771.2.1.3, if a Canadian-controlled private corporation is associated with one or more other Canadian-controlled private corporations and all of those corporations have filed with the Minister in prescribed form an agreement whereby, for the purposes of this Title, they allocate a percentage to one or more of them for the year, the business limit for the year of each of the corporations is equal to the product obtained by multiplying $500,000 by the percentage so allocated to it, if the percentage or the aggregate of the percentages so allocated, as the case may be, does not exceed 100%, and to zero, in any other case.

2005, c. 38, s. 173; 2010, c. 5, s. 69.

771.2.1.5. If any of the Canadian-controlled private corporations referred to in section 771.2.1.4 fails to file with the Minister an agreement referred to in that section within 30 days after notice in writing by the Minister has been forwarded to any of them that such an agreement is required for the purposes of any assessment of tax under this Part, the Minister shall, for the purposes of this Title, allocate an amount to one or more of them for the taxation year, which amount or the aggregate of which amounts, as the case may be, is to be equal, despite the first paragraph of section 771.2.1.3, to the lesser of the amounts that would be the business limit for the year of each of the corporations if none of them was associated with another corporation in the year and if no reference were made to sections 771.2.1.7 and 771.2.1.8.

2005, c. 38, s. 173; 2010, c. 5, s. 69.

771.2.1.6. If any of the Canadian-controlled private corporations that are associated with each other in a taxation year has, in that year, an establishment in a province other than Québec and a percentage or an amount is allocated, in accordance with subsection 3 or 4 of section 125 of the Income Tax Act (R.S.C. 1985, c. 1, (5th Suppl.)), to one or more of those corporations for the year,

 (a) the percentage allocated to each of the corporations for the year in accordance with section 771.2.1.4 is to be equal to the percentage that was allocated to it in accordance with that subsection 3 for the year; and

 (b) the amount allocated to each of the corporations for the year in accordance with section 771.2.1.5 is to be equal to the amount obtained by multiplying the lesser of the amounts that would be the business limit for the year of each of the corporations if none of them was associated with another corporation in the year and if no reference were made to sections 771.2.1.7 and 771.2.1.8, by the proportion that the amount allocated for the year to the corporation in accordance with subsection 4 of section 125 of the Income Tax Act is of the aggregate of the amounts allocated for the year, in accordance with that subsection 4, to each of the corporations.

If, for a taxation year, a corporation referred to in the first paragraph has filed an agreement with the Minister of National Revenue in accordance with subsection 3 of section 125 of the Income Tax Act, the corporation shall file with the Minister, for that year, a copy of the agreement.

2005, c. 38, s. 173; 2010, c. 5, s. 70.

771.2.1.7. Despite the first paragraph of section 771.2.1.3 and sections 771.2.1.4 to 771.2.1.6, the following rules apply:

 (a) if a Canadian-controlled private corporation, in this paragraph referred to as the first corporation, has more than one taxation year ending in the same calendar year and is associated in two or more of those taxation years with another Canadian-controlled private corporation that has a taxation year ending in that calendar year, the business limit of the first corporation for each particular taxation year that ends in the calendar year in which it is associated with the other corporation and that ends after the first taxation year ending in that calendar year is, subject to subparagraph b, an amount equal to the lesser of

(i)  its business limit for the first taxation year ending in the calendar year, determined in accordance with section 771.2.1.4 or 771.2.1.5, and

(ii)  its business limit for the particular taxation year ending in the calendar year, determined in accordance with section 771.2.1.4 or 771.2.1.5; and

 (b) if a Canadian-controlled private corporation has a taxation year of fewer than 51 weeks, its business limit for the year is that proportion of its business limit for the year, determined without reference to this paragraph and section 771.2.1.8, that the number of days in the year is of 365.

However, if subparagraph a of the first paragraph applies to a particular taxation year 2009 or 2010 of a corporation that ends after 19 March 2009, subparagraph i of that subparagraph a is to be read as follows:

“i. the amount that would be its business limit for the first taxation year ending in the calendar year, determined in accordance with section 771.2.1.4 or 771.2.1.5, if the reference to the amount in dollars that is provided for in section 771.2.1.4, as it applies in respect of that first taxation year, were replaced by a reference to the amount in dollars that is provided for in that section, as it applies in respect of the particular taxation year ending in the calendar year, and”.

2005, c. 38, s. 173; 2010, c. 5, s. 71.

771.2.1.8. Despite the first paragraph of section 771.2.1.3 and sections 771.2.1.4 to 771.2.1.7, a Canadian-controlled private corporation’s business limit for a taxation year ending in a calendar year is equal to the amount by which its business limit for the taxation year, determined without reference to this section, exceeds the amount determined by the formula


A × [(B − $10,000,000) / $5,000,000].


In the formula in the first paragraph,

 (a) A is the corporation’s business limit for the taxation year, determined without reference to this section; and

 (b) B is

(i)  if the corporation is not associated with any other corporation in the taxation year, the corporation’s paid-up capital determined as provided in section 771.2.1.9 of its preceding taxation year or, if the corporation is in its first fiscal period, on the basis of its financial statements prepared at the beginning of the fiscal period in accordance with generally accepted accounting principles, and

(ii)  if the corporation is associated with one or more other corporations in the taxation year, the aggregate of all amounts each of which is, for the corporation or any of the other corporations, the amount of its paid-up capital determined as provided in section 771.2.1.9 for its last taxation year ending in the preceding calendar year or, if the corporation is in its first fiscal period, on the basis of its financial statements prepared at the beginning of the fiscal period in accordance with generally accepted accounting principles.

2005, c. 38, s. 173.

771.2.1.9. For the purposes of section 771.2.1.8, the paid-up capital of a corporation for a taxation year is equal to

 (a) in respect of a financial institution, twice its paid-up capital determined for that year in accordance with Title II of Book III of Part IV;

 (b) in respect of a corporation referred to in paragraph c of section 1132, a mining corporation that has not reached the production stage or a cooperative, its paid-up capital that would be determined for that year in accordance with Title I of Book III of Part IV if no reference were made to section 1138.2.6; and

 (c) in respect of an insurance corporation, other than a corporation referred to in paragraph a or b, twice its paid-up capital that would be determined for that year in accordance with Title II of Book III of Part IV, if the corporation were a bank and if paragraph a of section 1140 were replaced by paragraph a of subsection 1 of section 1136.

2005, c. 38, s. 173; 2009, c. 5, s. 314; 2009, c. 15, s. 151.

771.2.1.10. If in a taxation year a corporation is a member of a particular partnership and the corporation or a corporation with which it is associated in the year is a member of one or more other partnerships in the year and it may reasonably be considered that one of the main reasons for the separate existence of the partnerships is to increase for a corporation the amount of the deduction determined in respect of a Canadian-controlled private corporation under paragraph d.2 or d.3 of subsection 1 of section 771, the specified partnership income of the corporation for the year is, for the purposes of this Title, to be computed in respect of those partnerships as if all amounts each of which is the income of one of the partnerships for a fiscal period that ends in the year from an eligible business carried on by it in Canada were equal to zero except for the greatest of those amounts.

2005, c. 38, s. 173; 2015, c. 21, s. 314.

771.2.1.11. For the purposes of this Title, a corporation that is a member, or is deemed under this section to be a member, of a partnership that is itself a member of another partnership is deemed to be a member of that other partnership and the corporation’s share of the income of the other partnership for a fiscal period is deemed to be equal to the amount of such income to which the corporation is directly or indirectly entitled.

2005, c. 38, s. 173.

771.2.1.12. Despite any other provision of this Title, if a corporation is a member of a partnership that was controlled, directly or indirectly in any manner whatever, by one or more persons not resident in Canada, by one or more public corporations other than a prescribed venture capital corporation, or by any combination thereof at any time in its fiscal period ending in a taxation year of the corporation, the income of the partnership for that fiscal period from an eligible business carried on in Canada is, for the purpose of computing the specified partnership income of the corporation for the year, deemed to be equal to zero.

2005, c. 38, s. 173.

771.2.1.13. For the purposes of section 771.2.1.12, a partnership is deemed to be controlled by one or more persons at any time if the share of that person or the aggregate of the shares of those persons of the income of the partnership from a particular source for the fiscal period of the partnership that includes that time exceeds one half of the income of the partnership from that source for that fiscal period.

2005, c. 38, s. 173.

771.2.2. For the purposes of sections 771.2.1.2 and 771.8.3 in respect of a corporation for a taxation year, the following rules apply:

 (a) the excess amount described in paragraph a of section 771.2.1.2 is to be computed as if the corporation had, for the year,

(i)  realized an additional income from an eligible business it carries on in Canada, equal to the second aggregate that is mentioned in the first paragraph of section 52 of the Act respecting international financial centres (chapter C-8.3) and determined in its respect for the year under that paragraph, and

(ii)  sustained an additional loss from an eligible business it carries on in Canada, equal to the first aggregate that is mentioned in the first paragraph of section 52 of the Act respecting international financial centres and determined in its respect for the year under that paragraph; and

 (b) the excess amount described in subparagraph d of the first paragraph of section 771.8.3 is to be computed as if the corporation had, for the year,

(i)  realized an additional income from an eligible business it carries on in Canada, equal to the second aggregate that is mentioned in the first paragraph of section 52 of the Act respecting international financial centres, which, if the percentage specified in computing that aggregate were equal to 100%, would be determined in its respect for the year under that paragraph, and

(ii)  sustained an additional loss from an eligible business it carries on in Canada, equal to the first aggregate that is mentioned in the first paragraph of section 52 of the Act respecting international financial centres, which, if the percentage specified in computing that aggregate were equal to 100%, would be determined in its respect for the year under that paragraph.

1987, c. 21, s. 29; 1989, c. 5, s. 121; 1992, c. 1, s. 70; 1995, c. 63, s. 71; 1997, c. 3, s. 71; 1997, c. 85, s. 158; 2000, c. 39, s. 79; 2004, c. 21, s. 202; 2005, c. 38, s. 174; 2009, c. 5, s. 315.

771.2.3. (Repealed).

1999, c. 83, s. 105; 2000, c. 39, s. 80; 2005, c. 38, s. 175; 2009, c. 5, s. 316; 2012, c. 8, s. 134.

771.2.4. For the purposes of sections 771.2.1.2 and 771.8.3, the amount by which the income of a corporation for a taxation year from an eligible business carried on by it exceeds its loss for the year from such a business shall be computed as if the amount determined under subparagraph a of the first paragraph of section 737.18.11 in respect of the corporation for the year and the amount determined in respect of the corporation for the year under subparagraph b of that paragraph were nil.

2000, c. 39, s. 81; 2005, c. 38, s. 176; 2009, c. 5, s. 317.

771.2.5. For the purposes of sections 771.2.1.2 and 771.8.3, the amount by which the income of a corporation for a taxation year from an eligible business carried on by it exceeds its loss for the year from such a business shall be computed as if the amounts determined in accordance with subparagraphs a and b of the second paragraph of section 737.18.17 in respect of the corporation for the year and the amounts determined in accordance with subparagraphs d and e of that paragraph in respect of a partnership of which the corporation is a member at the end of the partnership's fiscal period ending in that year, in relation to a major investment project of the corporation or partnership, as the case may be, in respect of which the Minister of Finance issued an annual qualification certificate for the taxation year of the corporation or fiscal period of the partnership, were nil.

2002, c. 9, s. 21; 2005, c. 38, s. 176; 2009, c. 5, s. 317.

771.2.5.1. For the purposes of section 771.2.1.2, the amount by which a corporation's income for a taxation year from a qualified business it carries on exceeds its loss for the year from such a business must be computed as if the amounts determined under subparagraphs a and b of the second paragraph of section 737.18.17.5 in respect of the corporation for the year and the amounts determined in respect of a partnership of which it is a member at the end of a fiscal year of the partnership that ends in the year, in accordance with subparagraphs d and e of that paragraph, in relation to a large investment project of the corporation or partnership, as the case may be, within the meaning of the first paragraph of section 737.18.17.1, in respect of which the Minister of Finance issued a certificate for the corporation's taxation year or the partnership's fiscal period, were, in the proportion determined in the second paragraph, nil.

The proportion to which the first paragraph refers is determined by the formula


A/B.


In the formula in the second paragraph,

 (a) A is 1, unless the amount that would be deductible in computing the corporation's taxable income for the year under section 737.18.17.5 if no reference were made to section 737.18.17.6 exceeds the particular amount that is deductible in computing that taxable income under section 737.18.17.5, in which case it is the particular amount; and

 (b) B is 1, unless the particular amount that would be deductible in computing the corporation's taxable income for the year under section 737.18.17.5 if no reference were made to section 737.18.17.6 exceeds the amount that is deductible in computing that taxable income under section 737.18.17.5, in which case it is the particular amount.

2015, c. 21, s. 315.

771.2.6. For the purposes of section 771.2.1.2, the amount by which the income of a corporation for a taxation year from an eligible business carried on by it exceeds its loss for the year from such a business shall be computed with reference to the following rules:

 (a) the product obtained by multiplying the amount that is the income or portion of the income, as the case may be, of the corporation for the year, determined under subparagraph a of the second paragraph of section 737.18.26, by the proportion determined in the second paragraph is deemed to be nil; and

 (b) the product obtained by multiplying the amount that is the loss or the portion of the loss, as the case may be, of the corporation for the year, determined under subparagraph b of the second paragraph of section 737.18.26, by the proportion determined in the second paragraph is deemed to be nil.

The proportion to which the first paragraph refers is determined by the formula


75% × {1 - [(A - $20,000,000)/$10,000,000]} × (1 - B) × C/D.


In the formula in the second paragraph,

 (a) A is the greater of $20,000,000 and the paid-up capital attributed to the corporation for the year, determined in accordance with section 737.18.24;

 (b) B is the corporation's reduction factor for the year, within the meaning assigned by the first paragraph of section 737.18.18;

 (c) C is

(i)  where the amount that would be deductible in computing the corporation's taxable income for the year under section 737.18.26 if no reference were made to section 737.18.26.1 exceeds the particular amount that is deductible in computing the corporation's taxable income for the year under section 737.18.26, the particular amount, and

(ii)  in any other case, 1; and

 (d) D is,

(i)  where the particular amount that would be deductible in computing the corporation's taxable income for the year under section 737.18.26 if no reference were made to section 737.18.26.1 exceeds the amount that is deductible in computing the corporation's taxable income for the year under section 737.18.26, the particular amount, and

(ii)  in any other case, 1.

2002, c. 40, s. 75; 2004, c. 21, s. 203; 2005, c. 38, s. 177; 2009, c. 5, s. 318; 2010, c. 25, s. 78.

771.2.7. For the purposes of sections 771.2.1.2 and 771.8.3, the amount by which the income of a corporation for a taxation year from an eligible business carried on by it exceeds its loss for the year from such a business shall be computed as if

 (a) in the case of section 771.2.1.2, 75% of the amounts determined in accordance with subparagraphs a and b of the second paragraph of section 737.18.33 in respect of the corporation for the year were nil; and

 (b) in the case of section 771.8.3, the amounts determined in accordance with subparagraphs a and b of the second paragraph of section 737.18.33 in respect of the corporation for the year were nil.

2003, c. 9, s. 99; 2004, c. 21, s. 204; 2005, c. 38, s. 178; 2009, c. 5, s. 319.

771.3. Where an amount is paid or becomes payable to a particular corporation by another corporation with which it is associated in any particular taxation year and where the particular corporation must otherwise include that amount in computing its income for the particular year from any property or specified investment business, the rules set forth in section 771.4 apply for the purposes of section 771.1.1.

1984, c. 15, s. 179; 1985, c. 25, s. 131; 1986, c. 15, s. 119; 1987, c. 21, s. 30; 1989, c. 5, s. 121; 1991, c. 8, s. 49; 1997, c. 3, s. 71.

771.4. The rules contemplated in section 771.3 are as follows:

 (a) the portion of the amount contemplated in section 771.3 that is deductible in computing the income of the other corporation for a taxation year from an eligible business carried on by it is deemed to be income of the particular corporation for the particular year from an eligible business carried on by it;

 (b) any outlay or expense, to the extent that that outlay or expense may reasonably be regarded as having been made or incurred by the particular corporation for the purpose of gaining the portion contemplated in paragraph a, is deemed to have been made or incurred for the purpose of gaining the income contemplated in paragraph a.

1985, c. 25, s. 131; 1986, c. 15, s. 120; 1987, c. 21, s. 30; 1997, c. 3, s. 71; 1997, c. 85, s. 330.

771.5. Subject to sections 771.6 and 771.7, a corporation is a qualified corporation for a particular taxation year if

 (a) its first taxation year began after 25 March 1997 but before 30 March 2004;

 (b) it is not a corporation resulting from an amalgamation or a merger of several corporations;

 (c) the particular year is included, in whole or in part, in the exemption period of the corporation;

 (d) the corporation filed a return in prescribed form with the Minister on or before its filing-due date for its first taxation year;

 (e) the corporation has not made an election under subparagraph b of the third paragraph of section 737.18.26.

1987, c. 21, s. 31; 1992, c. 1, s. 71; 1995, c. 63, s. 72; 1997, c. 3, s. 71; 1997, c. 31, s. 83; 1997, c. 85, s. 159; 2000, c. 39, s. 82; 2002, c. 40, s. 76; 2005, c. 23, s. 104.

771.5.1. For the purposes of paragraph d of section 771.5, a return that has not been filed by the corporation within the time prescribed therefor is deemed to have been filed within that time if the return is filed, in prescribed form and along with a payment by the corporation of the penalty determined under the second paragraph, on or before the corporation’s filing-due date for its taxation year in which the five-year period following the beginning of its first taxation year ends.

 (a) in the case of a corporation whose first taxation year begins after 25 March 1997, for its taxation year in which the five-year period following the beginning of its first taxation year ends; and

 (b) in any other case, for its third taxation year.

For the purposes of the first paragraph, the penalty that a corporation is required to pay with respect to the return contemplated therein is equal to the lesser of $600 and the product obtained by multiplying $50 by the number of months included, in whole or in part, in the period beginning on the day on which the time prescribed in paragraph d of section 771.5 expires and ending on the day on which the return is actually filed.

1990, c. 7, s. 70; 1997, c. 3, s. 71; 1997, c. 31, s. 84; 1997, c. 85, s. 160; 2000, c. 39, s. 83.

771.5.2. The Minister shall examine with dispatch every return filed with him under section 771.5.1, assess the penalty payable and send a notice of assessment to the corporation, which shall pay forthwith to the Minister the unpaid balance of the penalty.

1990, c. 7, s. 70; 1997, c. 3, s. 71.

771.6. A corporation is not a qualified corporation for a taxation year if, at any time in the period extending from the day of its incorporation to the end of the year, the corporation

 (a) was associated with any other corporation;

 (b) was a corporation other than a Canadian-controlled private corporation;

 (c) carried on a personal services business;

 (d) carried on an eligible business as a member of a partnership or as a co-participant in a joint venture with another person or a partnership;

 (e) was a beneficiary under a trust other than a mutual fund trust; or

 (f) carried on an eligible business principally as a result of acquiring or renting property from another person or a partnership who or which, at any time in the 12 months preceding that acquisition or rental, carried on a business in which he or it used that property and, by reason of that acquisition or rental, the corporation may reasonably be regarded as having continued to carry on the business or a part of the business of the other person or of the partnership.

Similarly, a corporation is not a qualified corporation for a taxation year if, for that year or a preceding taxation year,

 (a) all of its activities in the year do not consist entirely or almost entirely in carrying on an eligible business; or

 (b) its paid-up capital determined for the taxation year preceding the year or, where the corporation's year is its first fiscal period, on the basis of its financial statements prepared at the beginning of the fiscal period in accordance with generally accepted accounting principles, exceeds $15,000,000.

For the purposes of subparagraph b of the second paragraph, the paid-up capital of a corporation is

 (a) in respect of a financial institution, a corporation referred to in paragraph c of section 1132 or a mining corporation that has not reached the production stage, its paid-up capital that would be determined in accordance with Book III of Part IV if no reference were made to sections 1138.0.1, 1138.2.6 and 1141.3;

 (b) in respect of an insurance corporation, other than a corporation referred to in subparagraph a, its paid-up capital that would be determined in accordance with Title II of Book III of Part IV, if the corporation were a bank, if paragraph a of section 1140 were replaced by paragraph a of subsection 1 of section 1136 and if no reference were made to section 1141.3; and

 (c) in respect of a cooperative, its paid-up capital that would be determined in accordance with Title I of Book III of Part IV if no reference were made to sections 1138.0.1 and 1138.2.6.

1987, c. 21, s. 31; 1991, c. 8, s. 50; 1993, c. 64, s. 84; 1995, c. 63, s. 73; 1996, c. 39, s. 208; 1997, c. 3, s. 38; 1997, c. 85, s. 161; 2000, c. 39, s. 84; 2003, c. 9, s. 100; 2005, c. 23, s. 105; 2009, c. 5, s. 320; 2009, c. 15, s. 152.

771.7. Where the business carried on in a taxation year by a corporation may reasonably be considered in fact to consist mainly in the continuance of one or several businesses or of a part of one or several businesses previously carried on by one or several other persons or partnerships and where, but for this section, the corporation would be a qualified corporation for that year or a subsequent taxation year, the corporation is deemed, if the Minister so decides, not to be a qualified corporation for those years.

1987, c. 21, s. 31; 1995, c. 63, s. 261; 1996, c. 39, s. 273; 1997, c. 3, s. 71.

771.8. (Repealed).

1987, c. 21, s. 31; 1988, c. 4, s. 65; 1989, c. 5, s. 122; 1990, c. 59, s. 295; 1995, c. 63, s. 74; 1997, c. 3, s. 71; 2000, c. 39, s. 85.

771.8.1. (Repealed).

1992, c. 1, s. 72; 1993, c. 19, s. 62; 1994, c. 22, s. 270; 1995, c. 63, s. 75; 1997, c. 3, s. 71; 2000, c. 39, s. 85.

771.8.2. (Repealed).

1995, c. 63, s. 76; 1997, c. 3, s. 71; 2000, c. 39, s. 85.

771.8.3. The amount which, for the purposes of paragraph h of subsection 1 of section 771, is to be determined under this section in respect of a corporation for a taxation year is equal to 75% of the least of

 (a) $200,000;

 (b) the amount by which the taxable income of the corporation for the year exceeds the aggregate of the amount determined in respect of the corporation for the year under section 771.0.2.2 and the amount, if any, of the corporation's taxable income for the year that is not, because of an Act of the Legislature of Québec, subject to tax under this Part; and

 (c) (subparagraph repealed);

 (d) the amount by which its income for the year from an eligible business carried on by it in Canada exceeds its loss for the year from such a business.

However, the first paragraph shall be read,

 (a) where the corporation’s taxation year includes the last day of its exemption period, with “is equal to 75% of the least of”, in the portion before subparagraph a thereof, replaced by “is equal to such proportion of 75% of the least of the following amounts as the number of days in the year that are included in the corporation’s exemption period is of the number of days in the year:”;

 (b) where the corporation’s taxation year has less than 51 weeks, with the amount of $200,000, in subparagraph a thereof, replaced by such proportion of that amount as the number of days in the year is of 365.

1997, c. 85, s. 162; 2000, c. 39, s. 86; 2004, c. 21, s. 205.

771.8.4. (Repealed).

1997, c. 85, s. 162; 2000, c. 39, s. 87.

771.8.5. The amount that, for the purposes of paragraph j of subsection 1 of section 771, is to be determined under this section in respect of a corporation for a taxation year is the amount determined by the formula


A × B × C.


In the formula in the first paragraph,

 (a) A is,

(i)  if the corporation's taxation year includes the first or the last day of its eligibility period, or if a part of the year is excluded from its eligibility period because of the application of the fourth paragraph of section 771.1, the proportion that the number of days in the year that are included in the corporation's eligibility period is of the number of days in the year, and

(ii)  in any other case, 1;

 (b) B is

(i)  75%, if the corporation is referred to in subparagraph iii of paragraph a of section 771.12 and any of the following conditions is met:

(1)  the certificate referred to in paragraph a of section 771.12 and held by the corporation provides for the application of that rate, or

(2)  subject to the third paragraph, control of the corporation was acquired at the beginning of the year or of a preceding taxation year, but after 11 June 2003, by a person or a group of persons, and

(ii)  100%, in any other case; and

 (c) C is the lesser of

(i)  the amount by which its income for the year from an eligible business carried on by it in Canada exceeds its loss for the year from such a business, and

(ii)  the amount by which the taxable income of the corporation for the year exceeds the aggregate of the amount determined in respect of the corporation for the year under section 771.0.2.2 and the portion of that income that is not, because of an Act of the Legislature of Québec, subject to tax under this Part.

The condition set out in subparagraph 2 of subparagraph i of subparagraph b of the second paragraph is deemed not to be met if the acquisition of control

 (a) occurs before 1 July 2004 and Investissement Québec certifies that it results from a transaction that was sufficiently advanced on 11 June 2003 and was binding on the parties on that date;

 (b) is by an exempt corporation, by a person or group of persons that controls an exempt corporation, or by a group of persons each member of which is an exempt corporation or a person who, alone or together with other members of the group, controls such a corporation;

 (c) derives from the exercise after 11 June 2003 of one or more rights described in paragraph b of section 20 that were acquired before 12 June 2003; or

 (d) derives from the performance after 11 June 2003 of one or more obligations described in the third paragraph of section 21.3.5 that were contracted before 12 June 2003.

1997, c. 85, s. 162; 2000, c. 39, s. 88; 2005, c. 23, s. 106; 2006, c. 13, s. 61; 2007, c. 12, s. 87.

771.8.5.1. The amount that must be determined, for the purposes of paragraph j.1 of subsection 1 of section 771, in respect of a corporation for a taxation year under this section is the amount determined by the formula


A × B.


In the formula in the first paragraph,

 (a) A is

(i)  if the corporation's taxation year includes the last day of its tax-free period, the proportion that the number of days in the year that are included in the corporation's tax-free period is of the number of days in the year, and

(ii)  in any other case, 1; and

 (b) B is the lesser of

(i)  the amount by which the corporation's income for the year from an eligible business that is an eligible commercialization business exceeds its loss for the year from such a business, and

(ii)  the amount by which the corporation's taxable income for the year exceeds the aggregate of the amount determined in respect of the corporation for the year under section 771.0.2.2 and the portion of that income that is not subject to tax under this Part because of an Act of Québec.

2010, c. 5, s. 72; 2010, c. 25, s. 79.

771.8.6. (Repealed).

1997, c. 85, s. 162; 2000, c. 39, s. 89.

771.9. (Repealed).

1987, c. 21, s. 31; 1992, c. 1, s. 73; 1995, c. 63, s. 77; 1997, c. 3, s. 71; 1997, c. 14, s. 290; 1997, c. 85, s. 163; 2000, c. 39, s. 89.

771.10. (Repealed).

1987, c. 21, s. 31; 1992, c. 1, s. 74; 1995, c. 63, s. 78; 1997, c. 3, s. 71; 1997, c. 14, s. 290; 2000, c. 39, s. 89.

771.11. Where the tax payable by a corporation for a particular taxation year is determined under any of paragraphs e to g of subsection 1 of section 771, as that paragraph read for that year, the corporation is deemed, for the purposes of the application of section 734 to any subsequent taxation year, to have deducted under Title VII of Book IV, in computing its taxable income for the particular year, the amount that may be deducted in respect of any loss sustained for a taxation year ending before 26 March 1997 which, except where the corporation was a savings and credit union throughout the particular year, is not a net capital loss under the said Title in such computation for the particular year and which the corporation has not otherwise deducted in such computation for the particular year.

Notwithstanding the foregoing, the amount contemplated in the first paragraph for the particular taxation year in respect of a particular loss of the corporation shall not be greater than such portion of the excess amount described in subparagraph i of paragraph e, f or g, as the case may be, of subsection 1 of section 771, as that paragraph read for that year, in respect of the corporation for the particular year as exceeds the aggregate of all amounts it is deemed to have deducted under this section in such computation for the particular year in respect of any loss sustained by it in a taxation year preceding the taxation year in which the particular loss was sustained.

1987, c. 21, s. 31; 1992, c. 1, s. 74; 1995, c. 63, s. 78; 1997, c. 3, s. 71; 1997, c. 14, s. 290; 1997, c. 85, s. 164; 2000, c. 39, s. 90.

771.12. Subject to section 771.13, a corporation is an exempt corporation for a taxation year if it carries on or may carry on the business referred to in the certificate described in paragraph a and

 (a) the corporation holds a certificate issued by Investissement Québec certifying that the business referred to in the certificate is

(i)  an innovative project carried out by the corporation in an information technology development centre,

(ii)  an innovative project carried out by the corporation in a new economy centre, or

(iii)  an innovative project carried out by the corporation in a biotechnology development centre;

 (b) the corporation is not a corporation resulting from an amalgamation or a merger of several corporations;

 (c) (paragraph repealed);

 (d) the year is comprised in whole or in part in the corporation's eligibility period; and

 (e) the corporation has filed a copy of the certificate referred to in paragraph a with the Minister.

1997, c. 85, s. 165; 1998, c. 17, s. 64; 1999, c. 83, s. 106; 2000, c. 39, s. 91; 2001, c. 51, s. 73; 2001, c. 69, s. 12; 2002, c. 9, s. 22; 2003, c. 9, s. 101; 2005, c. 23, s. 107; 2012, c. 8, s. 135.

771.13. A corporation is not an exempt corporation for a taxation year if

 (a) the corporation is exempt from tax for the year under Book VIII;

 (b) the corporation would be exempt from tax for the year under section 985 but for section 192;

 (c) the corporation, at any time in the period extending from the day of its incorporation to the end of that year, was a beneficiary of a trust, other than a mutual fund trust, or carried on

(i)  a personal services business, or

(ii)  an eligible business as a member of a partnership or as a co-participant in a joint venture with another person or partnership;

 (d) the corporation is referred to in subparagraph i or ii of paragraph a of section 771.12 and is the subject, at the beginning of the year or of a preceding taxation year, but after 11 June 2003, of an acquisition of control by a person or a group of persons, unless the acquisition of control

(i)  occurs before 1 July 2004 and Investissement Québec certifies that the acquisition of control results from a transaction that was sufficiently advanced on 11 June 2003 and was binding on the parties on that date,

(ii)  is by an exempt corporation, by a person or group of persons that controls an exempt corporation, or by a group of persons each member of which is an exempt corporation or a person who, alone or together with other members of the group, controls such a corporation,

(iii)  derives from the exercise after 11 June 2003 of one or more rights described in paragraph b of section 20 that were acquired before 12 June 2003, or

(iv)  derives from the performance after 11 June 2003 of one or more obligations described in the third paragraph of section 21.3.5 that were contracted before 12 June 2003;

 (e) the corporation is referred to in subparagraph iii of paragraph a of section 771.12 and is the subject, at the beginning of the year or of a preceding taxation year, but after 30 March 2004, of an acquisition of control by a person or a group of persons, unless the acquisition of control

(i)  occurs before 1 July 2005 and Investissement Québec certifies that the acquisition of control results from a transaction that was sufficiently advanced on 30 March 2004 and was binding on the parties on that date,

(ii)  is by an exempt corporation, by a person or group of persons that controls an exempt corporation, or by a group of persons each member of which is an exempt corporation or a person who, alone or together with other members of the group, controls such a corporation,

(iii)  derives from the exercise after 30 March 2004 of one or more rights described in paragraph b of section 20 that were acquired before 31 March 2004, or

(iv)  derives from the performance after 30 March 2004 of one or more obligations described in the third paragraph of section 21.3.5 that were contracted before 31 March 2004;

 (f) at any time in a preceding taxation year, but after 11 June 2003, control of a specified corporation is acquired by the corporation, by a person or a group of persons that controls it or by a group of persons each member of which is an exempt corporation, a specified corporation or a person who, alone or together with other members of the group, controls an exempt corporation or a specified corporation, and of which group the corporation is part as a member or as a corporation that is controlled by one or more members of the group, unless

(i)  the acquisition of control

(1)  occurs before 1 July 2004 and Investissement Québec certifies that the acquisition of control results from a transaction that was sufficiently advanced on 11 June 2003 and was binding on the parties on that date,

(2)  derives from the exercise after 11 June 2003 of one or more rights described in paragraph b of section 20 that were acquired before 12 June 2003, or

(3)  derives from the performance after 11 June 2003 of one or more obligations described in the third paragraph of section 21.3.5 that were contracted before 12 June 2003, or

(ii)  the corporation or, if control is acquired by a group, another exempt corporation that is a member of the group or is controlled by one or more of its members, notifies Investissement Québec of the acquisition of control and of its election to maintain its status as an exempt corporation despite this subparagraph f;

 (g) for a preceding taxation year, the corporation has obtained, from Investissement Québec, a certificate referred to in paragraph c of the definition of “specified corporation” in the first paragraph of section 1029.8.36.0.17, after the corporation elected to become a specified corporation from a particular day of that preceding year that is not before 12 June 2003 and in respect of which the date of coming into force of the certificate is a proof; or

 (h) the corporation has made an election under the fourth or fifth paragraph of section 1029.8.36.0.3.80 for the year or a preceding taxation year.

Subparagraph f of the first paragraph does not apply to a particular corporation if control of the specified corporation is acquired by a person or a group of persons that controls the particular corporation or by a group of persons of which group the particular corporation is part as a corporation that is controlled by one or more members of the group and the person, group of persons or members also control another specified corporation.

In addition, subparagraph f of the first paragraph does not apply if the specified corporation whose control is acquired carries on or may carry on its business in a biotechnology development centre and the acquisition of control occurs after 30 March 2004.

For the purpose of determining whether a corporation is an exempt corporation for the taxation year in which the acquisition of control described in subparagraph f of the first paragraph occurs or in which the election made under subparagraph g of that paragraph becomes effective, no reference is to be made to

 (a) subparagraphs a to e of the first paragraph for the part of that year that begins, as the case may be, at the time of the acquisition of control or on the day on which the election becomes effective; and

 (b) the revocation of the certificate referred to in paragraph a of section 771.12, if the date on which it becomes effective is included in the part of the year referred to in subparagraph a.

1997, c. 85, s. 165; 1999, c. 83, s. 107; 2000, c. 5, s. 171; 2004, c. 21, s. 206; 2005, c. 23, s. 108; 2006, c. 13, s. 62; 2007, c. 12, s. 88; 2009, c. 15, s. 153.

771.14. Subject to section 771.15, a corporation is a corporation dedicated to the commercialization of intellectual property for a taxation year if

 (a) it was incorporated in Canada after 19 March 2009 and before 1 April 2014;

 (b) it began to carry on an eligible commercialization business within 12 months after its incorporation;

 (c) for the year and for each preceding taxation year, all or substantially all of its income is derived from an eligible business that is an eligible commercialization business;

 (d) in the year and in each preceding taxation year, all or substantially all of the amounts received or to be received by the corporation on the disposition of capital property is derived from the disposition of capital property in the ordinary course of carrying on an eligible commercialization business;

 (e) in the year and in each preceding taxation year, it did not carry on all or part of a business previously carried on by a person or partnership, unless the person or partnership did not carry on the business during more than 90 days;

 (f) in the year and in each preceding taxation year, it did not dispose of all or substantially all of the property it used in carrying on an eligible commercialization business;

 (g) it is not a corporation resulting from an amalgamation or a merger of several corporations;

 (h) the year is comprised in whole or in part in the corporation's tax-free period; and

 (i) it encloses a copy of the certificate referred to in the definition of “eligible commercialization business” in the first paragraph of section 771.1 and the prescribed form containing prescribed information with the fiscal return it is required to file under section 1000 for the year.

2010, c. 5, s. 73; 2010, c. 25, s. 80.

771.15. A corporation is not a corporation dedicated to the commercialization of intellectual property for a taxation year if

 (a) the corporation would be exempt from tax for the year under section 985 but for section 192;

 (b) the corporation's taxable income is greater than zero for the year and the corporation did not deduct the maximum amount in respect of any reserve, allowance or other amount in computing its income or taxable income for the year;

 (c) the corporation's taxable income is greater than zero for a preceding taxation year and the corporation did not deduct the maximum amount in respect of any reserve, allowance or other amount in computing its income or taxable income for that preceding year; or

 (d) the corporation, at any time in the period extending from the day of its incorporation to the end of the year, was a beneficiary of a trust, other than a mutual fund trust, or carried on

(i)  a personal services business, or

(ii)  an eligible business as a member of a partnership or as a co-participant in a joint venture with another person or partnership, unless each other co-participant in the joint venture or each other member of the partnership, as the case may be, was an eligible institute.

2010, c. 5, s. 73.

TITLE III 
MISCELLANEOUS TAX CREDITS
1972, c. 23; 1995, c. 63, s. 79.

CHAPTER I 
FOREIGN TAX CREDIT
1995, c. 63, s. 80.

DIVISION I 
INTERPRETATION
1995, c. 63, s. 80.

772. (Repealed).

1972, c. 23, s. 585; 1972, c. 26, s. 62; 1973, c. 17, s. 91; 1973, c. 18, s. 25; 1975, c. 22, s. 212; 1989, c. 77, s. 85; 1995, c. 63, s. 81.

772.1. (Repealed).

1990, c. 59, s. 296; 1993, c. 16, s. 289; 1993, c. 19, s. 63; 1994, c. 22, s. 271; 1995, c. 63, s. 81.

772.2. In this chapter,

business-income tax paid by a taxpayer for a taxation year in respect of businesses carried on by the taxpayer in a particular foreign country means, subject to sections 772.5.1 and 772.5.2, such portion of any income or profits tax paid by the taxpayer for the year to the government of a foreign country as may reasonably be regarded as tax in respect of the taxpayer's income from any business carried on by the taxpayer in the particular foreign country and that is attributable to an establishment situated in that country, but does not include a tax

 (a) that may reasonably be regarded as relating to an amount that any other person or partnership has received or is entitled to receive from that government;

 (b) that may reasonably be attributed, as the case may be,

(i)  to an amount included in the part of the individual's income for the year that may reasonably be considered to be earned in the part of the individual's exemption period, within the meaning of section 737.18.6, in relation to an employment that is included in the year,

(ii)  to the portion of an amount, included in the part of the individual's income for the year that may reasonably be considered to be earned in the part of a specified period of the individual, within the meaning of section 737.18.29, in relation to an employment that is included in the year, that is equal to the product obtained by multiplying that amount by the percentage determined under subparagraph a of the second paragraph of section 737.18.34 in respect of that period, or

(iii)  to the portion of an amount, included in the part of the individual's income for the year that may reasonably be considered to be earned in the part of a specified period of the individual, established under the fourth paragraph of section 65 of the Act respecting international financial centres (chapter C-8.3), in relation to an employment that is included in the year, that is equal to the product obtained by multiplying that amount by the percentage determined in subparagraph 1 of the second paragraph of that section 65 in respect of that period;

 (c) that may reasonably be regarded as relating to an amount deductible under paragraph a of section 725 in computing the taxpayer's taxable income for the year; or

 (d) that may reasonably be regarded as relating to the amount determined for B in the formula in the first paragraph of section 752.0.10.0.3 in respect of the taxpayer for the year;

commercial obligation in respect of a taxpayer's foreign oil and gas business in a country means an obligation of the taxpayer to a particular person, where

 (a) the obligation was undertaken in the course of carrying on the business or in contemplation of the business; and

 (b) the law of the country would have allowed the taxpayer to undertake an obligation, on substantially the same terms, to a person other than the particular person;

economic profit of a taxpayer in respect of a property for a period means the part of the taxpayer's profit, from the business in which the property is used, that is attributable to the property in respect of the period or to related transactions, determined as if the only amounts deducted in computing that part of the profit were

 (a) interest and financing expenses incurred by the taxpayer and attributable to the acquisition or holding of the property in respect of the period or to a related transaction;

 (b) income or profits taxes payable by the taxpayer for any year to the government of a foreign country, in respect of the property for the period or in respect of a related transaction; or

 (c) other outlays and expenses that are directly attributable to the acquisition, holding or disposition of the property in respect of the period or to a related transaction;

foreign oil and gas business of a taxpayer means a business, carried on by the taxpayer in a taxing country, the principal activity of which is the extraction from natural accumulations, or from oil or gas wells, of petroleum, natural gas or related hydrocarbons;

non-business-income tax paid by a taxpayer for a taxation year to the government of a foreign country means, subject to sections 772.5.1 and 772.5.2, such portion of any income or profits tax paid by the taxpayer for the year to that government as

 (a) was not included in computing the business-income tax paid by the taxpayer for the year in respect of any business carried on by the taxpayer in any foreign country;

 (b) was not deductible by virtue of section 146 in computing the taxpayer's income for the year;

 (c) was not deducted by virtue of section 146.1 in computing the taxpayer's income for the year; and

 (d) is not a tax

(i)  that would not have been payable by the taxpayer had the taxpayer not been a citizen of that country and that cannot reasonably be regarded as attributable to income from a source situated in a foreign country,

(ii)  that is in respect of an amount deducted because of section 671.3 in computing the business-income tax paid by the taxpayer,

(iii)  that may reasonably be regarded as relating to an amount that any other person or partnership has received or is entitled to receive from that government,

(iv)  that may reasonably be regarded as the proportion of the tax paid by the taxpayer to that government in respect of income from employment abroad that the amount deducted by the taxpayer under section 737.25 in respect of that income in computing the taxpayer's taxable income for the year is of the taxpayer's income from employment abroad for the year as determined under Chapters I and II of Title II of Book III,

(v)  that may reasonably be regarded as relating to the amount by which the amount deducted under subsection 12 of section 20 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) in computing the taxpayer's income for the year under that Act exceeds any amount deducted in the computation of the taxpayer's income for the year under section 146.1,

(vi)  that may reasonably be attributed to all or part of the taxable capital gain in respect of which the taxpayer or the taxpayer's spouse claimed a deduction under any of sections 726.7 to 726.9 and 726.20.2,

(vii)  that may reasonably be attributed, as the case may be,

(1)  to an amount included in the part of the individual's income for the year that may reasonably be considered to be earned in the part of the individual's exemption period, within the meaning of section 737.18.6, in relation to an employment that is included in the year,

(2)  to the portion of an amount, included in the part of the individual's income for the year that may reasonably be considered to be earned in the part of a specified period of the individual, within the meaning of section 737.18.29, in relation to an employment that is included in the year, that is equal to the product obtained by multiplying that amount by the percentage determined under subparagraph a of the second paragraph of section 737.18.34 in respect of that period, or

(3)  to the portion of an amount, included in the part of the individual's income for the year that may reasonably be considered to be earned in the part of a specified period of the individual, established under the fourth paragraph of section 65 of the Act respecting international financial centres, in relation to an employment that is included in the year, that is equal to the product obtained by multiplying that amount by the percentage determined in subparagraph 1 of the second paragraph of that section 65 in respect of that period,

(viii)  that may reasonably be regarded as relating to an amount deductible under paragraph a of section 725 or section 737.14 or 737.28 in computing the taxpayer's taxable income for the year, or

(ix)  that may reasonably be regarded as relating to the amount determined for B in the formula in the first paragraph of section 752.0.10.0.3 in respect of the taxpayer for the year;

production tax amount of a taxpayer for a foreign oil and gas business carried on by the taxpayer in a taxing country for a taxation year means the total of all amounts each of which

 (a) became receivable in the year by the government of the country because of an obligation, other than a commercial obligation, of the taxpayer, in respect of the business, to the government or a mandatary or instrumentality of the government;

 (b) is computed by reference to the amount by which the amount or value of petroleum, natural gas or related hydrocarbons produced or extracted by the taxpayer in the course of carrying on the business in the year exceeds an amount that

(i)  is deductible, under the agreement or law that creates the obligation described in paragraph a, in computing the amount receivable by the government of the taxing country, and

(ii)  is intended to take into account the taxpayer's operating and capital costs of that production or extraction, and can reasonably be considered to have that effect;

 (c) would not, but for section 772.5.6, be an income or profits tax; and

 (d) is not identified as a royalty under the agreement that creates the obligation described in paragraph a or under any law of the taxing country;

related transactions, in respect of a taxpayer's ownership of a property for a period, means transactions entered into by the taxpayer as part of the arrangement under which property was owned;

tax-exempt income means income of a taxpayer from a source in a country in respect of which

 (a) the taxpayer is, because of a tax agreement with that country, entitled to an exemption from all income or profits taxes, imposed in that country, to which the agreement applies; and

 (b) no income or profits tax to which the tax agreement does not apply is imposed in any country other than Canada;

taxing country means a foreign country the government of which regularly imposes, in respect of income from business carried on in the country, a levy or charge of general application that would, but for section 772.5.6, be an income or profits tax;

tax otherwise payable under this Part by a taxpayer for a taxation year means the tax payable by the taxpayer for the year under this Part, computed without reference to this chapter, sections 766.2 to 766.3, 767, 772.13.2, 776 to 776.1.26, 776.17, 1183 and 1184, subparagraphs i and ii.1 of paragraph h of subsection 1 of section 771, subparagraphs i and iii of paragraph j of that subsection 1 and subparagraphs i and ii of paragraph j.1 of that subsection 1, and, in paragraphs d.2 and d.3 of that subsection 1, the deduction provided for in respect of a Canadian-controlled private corporation;

unused portion of the foreign tax credit of a taxpayer for a taxation year means

 (a) in respect of a country, where the taxpayer is an individual,

(i)  the amount determined as such for the year in respect of the individual in respect of that country in accordance with the regulations made under section 772, as they read for that year, where the year is a taxation year previous to the taxation year 1991, or

(ii)  in other cases, the amount by which

(1)  45% of the business-income tax paid by the taxpayer for the year in respect of businesses carried on by the taxpayer in that country exceeds

(2)  where the year is a taxation year that is before the taxation year 1998, the total of the amount deductible under section 772.8 in respect of that country in computing the individual's tax payable under this Part for the year and the portion, that may reasonably be regarded as deductible under section 1086.3 in computing the individual's tax payable under Part I.1 for the year, of the business-income tax paid by the individual for the year in respect of businesses carried on by the individual in that country, or, where the year is a taxation year that is after the taxation year 1997, the amount deductible under section 772.8 in respect of that country in computing the individual's tax payable under this Part for the year; and

 (b) where the taxpayer is a corporation,

(i)  the amount determined as such for the year in respect of the corporation in accordance with the regulations made under section 772, as they read for that year, where the year is a taxation year previous to the taxation year 1991,

(ii)  an amount that is nil where the year is the taxation year 1991 or 1992 and the corporation decided to include an amount under section 726.5, as it read for those years, in computing its taxable income for the year, and

(iii)  in other cases, the amount by which

(1)  the aggregate of the amounts, each of which corresponds to the maximum deduction that would be granted in accordance with this chapter, otherwise than under section 772.12, to the corporation in respect of a foreign country if it had sufficient tax otherwise payable, exceeds

(2)  the amount deductible under this chapter, otherwise than under section 772.12, in computing the corporation's tax payable for the year under this Part.

1995, c. 63, s. 82; 1996, c. 39, s. 209; 1997, c. 3, s. 71; 1997, c. 14, s. 129; 1997, c. 85, s. 166; 1999, c. 86, s. 83; 2000, c. 39, s. 92; 2001, c. 53, s. 132; 2003, c. 2, s. 228; 2003, c. 9, s. 102; 2004, c. 21, s. 207; 2005, c. 1, s. 182; 2005, c. 38, s. 179; 2007, c. 12, s. 89; 2009, c. 5, s. 321; 2010, c. 5, s. 74; 2011, c. 34, s. 39; 2012, c. 8, s. 136; 2015, c. 21, s. 316; 2015, c. 36, s. 50.

772.2.1. For the purposes of the definition of “non-business-income tax” in section 772.2, an amount paid by a taxpayer for a taxation year as an employee's contribution under the United States Federal Insurance Contributions Act (26 U.S.C. c. 21) is deemed to be an income or profits tax paid by the taxpayer for the year to the government of that country.

2009, c. 15, s. 154.

772.3. For the purposes of this chapter, where an individual dies or ceases to be resident in Canada during a taxation year, the last day of his taxation year is the day of his death or the last day on which he was resident in Canada, as the case may be.

1995, c. 63, s. 82; 2009, c. 5, s. 322.

772.4. For the purposes of this chapter, an individual's business income that is attributable to an establishment situated in a particular foreign country shall be computed by applying, with the necessary modifications, the regulations made under section 22.

In addition, any deduction referred to in this chapter, otherwise than under section 772.11 or 772.12, shall be computed separately in respect of each country.

Any reference in this chapter to the government of a foreign country or a country other than Canada includes a reference to the government of a political subdivision of such a country.

Where the income from a source in a particular country would be tax-exempt income but for the fact that a portion of the income is subject to an income or profits tax imposed by the government of a country other than Canada, that portion of the income is deemed, for the purposes of this chapter, to be income from a separate source in the particular country.

For the purposes of section 772.9.1, if, in computing a taxpayer's income from a business carried on by the taxpayer in Canada, an amount is included in respect of interest paid or payable to the taxpayer by a person resident in a foreign country, and the taxpayer has paid to the government of that country a non-business-income tax for the year with respect to the amount, the amount is deemed to be income from a source in that foreign country.

1995, c. 63, s. 82; 2003, c. 2, s. 229; 2009, c. 5, s. 323.

772.5. An individual who, in computing his taxable income for a taxation year, deducts an amount under any of sections 726.7 to 726.9 and 726.20.2 is deemed, for the purposes of this chapter, to have claimed the deduction in respect of such taxable capital gains or portion thereof as he may specify in the fiscal return he is required to file under section 1000 for the year or, failing such designation, in respect of such taxable capital gains as the Minister may designate in respect of the individual for the year.

1995, c. 63, s. 82.

772.5.1. If a taxpayer acquires a property, other than a capital property, at any time after 23 February 1998 and it is reasonable to expect at that time that the taxpayer will not realize an economic profit in respect of the property for the period that begins at that time and ends when the taxpayer next disposes of the property, the amount of all income or profits taxes in respect of the property for the period, and in respect of related transactions, paid by the taxpayer for any year to the government of a foreign country, is not included in computing the taxpayer’s business-income tax or non-business-income tax for any taxation year.

2001, c. 53, s. 133; 2003, c. 2, s. 230.

772.5.2. If at any particular time a taxpayer disposes of a property that is a share or debt obligation and the period that began at the time the taxpayer last acquired the property and ended at the particular time is one year or less, the amount included in business-income tax or non-business-income tax paid by the taxpayer for a particular taxation year on account of all taxes that meet the following conditions, shall, subject to section 772.5.3, not exceed the amount determined by the formula provided for in the second paragraph:

 (a) the taxes are paid by the taxpayer in respect of dividends or interest in respect of the period that are included in computing the taxpayer’s income from the property for any taxation year;

 (b) the taxes are otherwise included in business-income tax or non-business-income tax for any taxation year; and

 (c) the taxes are similar to the tax levied under Part XIII of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement).

The formula to which the first paragraph refers is the following:


A × (B − C) × D / E.


In the formula provided for in the second paragraph,

 (a) A is a rate of 40%;

 (b) B is the aggregate of

(i)  the taxpayer’s proceeds from the disposition of the property at the particular time, and

(ii)  the amount of all dividends or interest from the property in respect of the period included in computing the taxpayer’s income for any taxation year;

 (c) C is the aggregate of the cost at which the taxpayer last acquired the property and any outlays or expenses made or incurred by the taxpayer for the purpose of disposing of the property at the particular time;

 (d) D is the amount of the taxes referred to in the first paragraph that would otherwise be included in computing the taxpayer’s business-income tax or non-business-income tax for the particular year; and

 (e) E is the total amount of the taxes referred to in the first paragraph that would otherwise be included in computing the taxpayer’s business-income tax or non-business-income tax for all taxation years.

2001, c. 53, s. 133; 2003, c. 2, s. 231.

772.5.3. Section 772.5.2 does not apply to a property of a taxpayer

 (a) that is a capital property;

 (b) that is a debt obligation issued to the taxpayer that has a term of one year or less and that is held by no one other than the taxpayer at any time;

 (c) that was last acquired by the taxpayer before 24 February 1998; or

 (d) in respect of which any tax described in the first paragraph of section 772.5.2 is, because of section 772.5.1, not included in computing the taxpayer’s business-income tax or non-business-income tax.

2001, c. 53, s. 133.

772.5.4. For the purposes of sections 772.5.1 and 772.5.2 and the definition of economic profit in section 772.2,

 (a) sections 83.0.4, 83.0.5, 106.5, 106.6, 281 to 283 and 428 to 451, Chapter I of Title I.1 of Book VI, Title I.2 of Book VI, sections 832.1 and 851.22.15, paragraph b of section 851.22.23 and sections 851.22.23.1, 851.22.23.2 and 999.1 do not apply to deem a disposition or acquisition of property to have been made;

 (b) the following dispositions are deemed not to be dispositions:

(i)  a disposition, to which section 301.3 applies, of a capital property in exchange for a new obligation,

(ii)  a disposition, to which sections 541 to 543 apply, of shares in exchange for new shares, or

(iii)  a disposition, to which sections 551 to 553.1, 554 and 555 apply, of shares in exchange for new shares; and

 (c) the capital property and the new obligation, or the shares and the new shares, as the case may be, to which paragraph b refers, are deemed to be the same property.

2001, c. 53, s. 133; 2004, c. 8, s. 146; 2015, c. 36, s. 51.

772.5.5. (Repealed).

2001, c. 53, s. 133; 2003, c. 2, s. 232.

772.5.6. For the purposes of this chapter, a taxpayer who is resident in Canada throughout a taxation year and carries on a foreign oil and gas business in a taxing country in the year is deemed to have paid in the year as an income or profits tax to the government of the taxing country an amount equal to the lesser of

 (a) the amount by which 40% of the taxpayer’s income from the business in the taxing country for the year exceeds the total of all amounts that are, but for this section, income or profits taxes paid in the year in respect of the business to the government of the taxing country; and

 (b) the taxpayer’s production tax amount for the business in the taxing country for the year.

2003, c. 2, s. 233.

DIVISION II 
CREDITS
1995, c. 63, s. 82.

772.6. A taxpayer who is an individual resident in Québec on the last day of a taxation year, or that is a corporation resident in Canada that carries on a business in Québec at any time in a taxation year, may deduct from the tax otherwise payable under this Part for the year

 (a) in the case of an individual, the amount by which the non-business-income tax the individual has paid for the year to the government of a foreign country in respect of income from a source situated in that country, exceeds the aggregate of

(i)  the deduction granted to the individual in respect of that income for the year under subsection 1 of section 126 of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement), and

(ii)  (subparagraph repealed),

(iii)  where the individual is required under section 127.5 of the Income Tax Act to pay tax for the year, an amount in respect of that income is computed under subsection 2 of section 127.54 of that Act, for the purpose of determining the tax, and the amount so computed is equal

(1)  to the amount referred to in paragraph a of that subsection 2, the amount that would be referred to in that paragraph if the reference therein to section 126 of that Act were replaced by a reference to subsection 1 of that section 126;

(2)  to the amount referred to in paragraph b of that subsection 2, such portion of the amount referred to in that paragraph b as may reasonably be regarded as attributable to income referred to in subparagraph i of paragraph b of subsection 1 of section 126 of that Act; and

 (b) in the case of a corporation, the proportion of the amount by which the foreign tax deduction that would be granted to the corporation for the year under subsection 1 of section 126 of the Income Tax Act, if the deduction referred to in subsection 1 of section 124 of that Act were not taken into account and the rate of 30% referred to in A of the formula in subsection 4.2 of that section 126 were replaced by a rate of 40%, exceeds the deduction granted for the year under subsection 1 of section 126 that the corporation’s business for the year carried on in Québec is of its business carried on in Canada, computed in the manner prescribed in the regulations made under section 771, with the necessary modifications.

1995, c. 63, s. 82; 1997, c. 3, s. 71; 2001, c. 53, s. 134; 2003, c. 2, s. 234.

772.6.1. For the purposes of sections 146.1 and 146.2 and this chapter, in respect of an authorized foreign bank, the following rules apply:

 (a) the bank is deemed, for the purposes of sections 772.2, 772.4 and 772.5.1 to 772.7, to be a corporation resident in Canada in respect of its Canadian banking business;

 (b) the reference in the portion of section 146.1 before paragraph a to “foreign country” shall be read as a reference to “country that is neither Canada nor a country in which the taxpayer is resident at any time in the year”;

 (c) the definition of tax-exempt income in section 772.2 shall be read as follows:

tax-exempt income means income of a taxpayer from a source in a particular country in respect of which

 (a) the taxpayer is, under a comprehensive agreement or convention for the elimination of double taxation on income, which has the force of law in the particular country and to which a country in which the taxpayer is resident is a party, entitled to an exemption from all income or profits taxes, imposed in the particular country, to which the agreement or convention applies; and

 (b) no income or profits tax to which the agreement or convention does not apply is imposed in the particular country;”;

 (d) the references in the portion of the second paragraph of section 772.7 before subparagraph a to “in relation to a foreign country” and “from sources situated in a foreign country” shall be read as references to “in relation to a country that is neither Canada nor a country in which the corporation is resident at any time in the year” and “in respect of its Canadian banking business from sources in that country”, respectively;

 (e) the reference in subparagraphs a and d of the second paragraph of section 772.7 to “in the foreign country” shall be read as a reference to “in that country”; and

 (f) the bank shall include in computing its non-business income tax paid for a taxation year to the government of a foreign country, only taxes that relate to amounts that are included in computing the bank’s taxable income from its Canadian banking business.

2004, c. 8, s. 147.

772.7. The deduction provided for in section 772.6 in respect of an individual for a taxation year shall not exceed the proportion of the individual's tax otherwise payable under this Part for the year that

 (a) the amount for the year, if the individual is resident in Canada throughout the year, or, where the individual is not resident in Canada at any time in the year, for the part of the year throughout which the individual is resident in Canada, by which the total of the individual’s incomes exceeds the total of the individual’s losses from sources situated in a foreign country, computed

(i)  on the assumption that no businesses were carried on by the individual in the foreign country through an establishment situated in that country and no amount was deducted under section 584 in computing the individual’s income for the year,

(ii)  without taking into account any portion of income that is deductible under paragraph a of section 725 or any of sections 726.26, 737.14, 737.16, 737.18.10, 737.18.34, 737.25 and 737.28, or deducted under any of sections 726.7 to 726.9 and 726.20.2, by the individual in computing the individual’s taxable income for the year, and

(iii)  without taking into account any income or loss from a source situated in the foreign country, if any income of the individual from the source would be tax-exempt income; is of

 (b) the amount by which

(i)  either, if the individual is resident in Canada throughout the year, the aggregate of the individual's income for the year and of all amounts each of which is an amount included in computing the individual's taxable income for the year under section 726.35 or 737.17, or, if the individual is not resident in Canada at any time in the year, the amount determined for the year in respect of the individual under the third paragraph of section 23, exceeds

(ii)   the aggregate of all amounts each of which is an amount deductible under any of sections 725, 725.2 to 725.6, 726.26, 726.28, 737.14, 737.16, 737.16.1, 737.18.10, 737.18.34, 737.21, 737.22.0.0.3, 737.22.0.0.7, 737.22.0.3, 737.22.0.4.7, 737.22.0.7, 737.22.0.10, 737.22.0.13, 737.25 and 737.28, or deducted under any of sections 726.7 to 726.9, 726.20.2, 726.33 and 729, in computing the individual's taxable income for the year.

The deduction provided for in section 772.6 in respect of a corporation for a taxation year in relation to a foreign country shall not exceed 10% of the proportion that the corporation’s business for the year carried on in Québec is of its business carried on in Canada or in Québec and elsewhere, as determined in the manner prescribed in the regulations made under section 771, of the amount for the year by which the total of the corporation’s incomes exceeds the total of the corporation’s losses, from sources situated in a foreign country, computed

 (a) on the assumption that no businesses were carried on by the corporation in the foreign country through an establishment situated in that country;

 (b) without taking into account any income from shares of the capital stock of a foreign affiliate of the corporation;

 (c) without taking into account any portion of income that is deductible under section 737.14 by the corporation in computing the corporation’s taxable income for the year; and

 (d) without taking into account any income or loss from a source situated in the foreign country, if any income of the corporation from the source would be tax-exempt income.

1995, c. 63, s. 82; 1997, c. 3, s. 71; 1997, c. 14, s. 130; 1997, c. 85, s. 167; 1999, c. 83, s. 108; 1999, c. 86, s. 99; 2000, c. 39, s. 264; 2001, c. 53, s. 135; 2002, c. 40, s. 77; 2003, c. 9, s. 103; 2004, c. 8, s. 148; 2004, c. 21, s. 208; 2006, c. 36, s. 78; 2010, c. 25, s. 81; 2013, c. 10, s. 58.

772.8. An individual who is resident in Québec on the last day of a taxation year and who, in the year, carries on a business in a foreign country through an establishment situated in that country, may deduct from his tax otherwise payable under this Part for the year an amount that does not exceed the total of

 (a) 45% of the business-income tax paid by the individual for the year in respect of businesses the individual carried on in that country; and

 (b) the individual's unused portions of the foreign tax credit in respect of that country for the ten taxation years preceding the year and the three taxation years following the year.

1995, c. 63, s. 82; 2005, c. 38, s. 180.

772.9. The deduction provided for in section 772.8 in respect of an individual for a taxation year in respect of a country shall not exceed the lesser of

 (a) the proportion of the individual's tax otherwise payable under this Part for the year that

(i)  the amount for the year, if the individual is resident in Canada throughout the year, or, where the individual is not resident in Canada at any time in the year, for the part of the year throughout which the individual is resident in Canada, by which the total of the individual’s incomes exceeds the total of the individual’s losses, from businesses carried on by the individual in that country and attributable to an establishment situated therein, computed without taking into account

(1)  any portion of income that is deductible under paragraph a of section 725 or any of sections 726.26, 737.16, 737.18.10 and 737.18.34 by the individual in computing the individual’s taxable income for the year, and

(2)  any income or loss from a source situated in that country, if any income of the individual from the source would be tax-exempt income, is of

(ii)  the amount by which

(1)  either, if the individual is resident in Canada throughout the year, the aggregate of the individual's income for the year and of all amounts each of which is an amount included in computing the individual's taxable income for the year under section 726.35 or 737.17, or, if the individual is not resident in Canada at any time in the year, the amount determined for the year in respect of the individual under subparagraph a of the third paragraph of section 23, exceeds

(2)  the aggregate of all amounts each of which is an amount deductible under any of sections 725, 725.2 to 725.6, 726.26, 726.28, 737.14, 737.16, 737.16.1, 737.18.10, 737.18.34, 737.21, 737.22.0.0.3, 737.22.0.0.7, 737.22.0.3, 737.22.0.4.7, 737.22.0.7, 737.22.0.10, 737.22.0.13, 737.25 and 737.28, or deducted under any of sections 726.7 to 726.9, 726.20.2, 726.33 and 729, in computing the individual's taxable income for the year; and

 (b) the amount by which the individual's tax otherwise payable under this Part for the year exceeds the aggregate of the amounts deducted from the tax by the individual for the year under section 772.6.

1995, c. 63, s. 82; 1997, c. 14, s. 131; 1997, c. 85, s. 168; 1999, c. 83, s. 109; 1999, c. 86, s. 99; 2000, c. 39, s. 93; 2001, c. 53, s. 136; 2002, c. 40, s. 78; 2003, c. 9, s. 104; 2004, c. 8, s. 149; 2004, c. 21, s. 209; 2006, c. 36, s. 79; 2010, c. 25, s. 82; 2013, c. 10, s. 59.

772.9.1. For the purposes of subparagraph a of the first paragraph of section 772.7, the second paragraph of that section and subparagraph i of paragraph a of section 772.9, the incomes and losses for a taxation year of a taxpayer from sources in a foreign country shall also be computed as if, where applicable, the aggregate of all amounts each of which is that portion of an amount deducted in computing those incomes or losses for the year under any of sections 371, 418.1.10, 418.17 and 418.17.3 that is attributable to those sources were the greater of

 (a) the aggregate of all amounts each of which is that portion of an amount deducted in computing the taxpayer’s income for the year under any of sections 371, 418.1.10, 418.17 and 418.17.3 that is attributable to those sources; and

 (b) the aggregate of

(i)  the portion of the maximum amount that would be deductible by the taxpayer in computing the taxpayer’s income for the year under section 371 that is attributable to those sources if the amount determined under paragraph b of section 374 for the taxpayer in respect of the year were equal to the amount by which the amount determined under the second paragraph exceeds the aggregate of all amounts each of which is the portion of an amount, other than a portion that results in a reduction of the amount otherwise determined under subparagraph a of the second paragraph, that is attributable to those sources and that would be deducted under section 418.17 in computing the taxpayer’s income for the year if the maximum amounts deductible for the year under section 418.17 were deducted,

(ii)  the maximum amount that would be deductible by the taxpayer in computing the taxpayer’s income for the year under section 418.1.10 in relation to those sources if

(1)  the amount deducted in computing the taxpayer’s income for the year under section 371 in relation to those sources were the amount determined under subparagraph i,

(2)  the amounts deducted in computing the taxpayer’s income for the year under sections 418.17 and 418.17.3 in relation to those sources were the maximum amounts deductible under those sections,

(3)  for the purposes of sections 418.1.3 to 418.1.5, the total of the amounts designated for the year under subparagraph ii of paragraph a of section 330 in respect of a disposition in the year by the taxpayer of foreign resource properties in relation to the foreign country were the maximum total that could be so designated without any reduction in the maximum amount that would be determined for the year under subparagraph i in respect of the taxpayer and the foreign country if subparagraph b of the second paragraph were read without reference to the assumption made therein in relation to designations made under subparagraph ii of paragraph a of section 330, and

(4)  the amount determined under paragraph b of section 418.1.10 were nil; and

(iii)  the aggregate of all amounts each of which is the maximum amount attributable to one of those sources that the taxpayer may deduct in computing the taxpayer’s income for the year under section 418.17 or 418.17.3.

The amount that, for the purposes of subparagraph i of subparagraph b of the first paragraph, must be determined under this paragraph is the aggregate of

 (a) the taxpayer’s foreign resource income, within the meaning assigned by section 418.1.7, for the year in relation to the foreign country, determined as if the taxpayer had deducted the maximum amounts deductible for the year under sections 418.17 and 418.17.3; and

 (b) the aggregate of all amounts each of which is an amount that, but for any designation under subparagraph ii of paragraph a of section 330, would have been included in computing the taxpayer’s income for the year under that paragraph a in respect of a disposition of foreign resource property in relation to the foreign country.

2004, c. 8, s. 150.

772.9.1.1. If an amount is deemed under section 603.1 to be a taxable dividend received by a person in a taxation year of the person in respect of a partnership, and it may reasonably be considered that all or part of the amount (in this section referred to as the “foreign-source portion”) is attributable to income of the partnership from a source in a foreign country, the person is deemed for the purposes of this chapter to have income from that source for the year equal to the amount determined by the formula


A × B/C.


In the formula in the first paragraph,

 (a) A is the amount included under section 497 in computing the person's income for the year in respect of the taxable dividend;

 (b) B is the foreign-source portion; and

 (c) C is the amount of the taxable dividend deemed to be received by the person.

2009, c. 5, s. 324.

772.9.2. If at any particular time in a taxation year an individual who is not resident in Canada disposes of a property that the individual last acquired because of the application of subparagraph c of the first paragraph of section 785.2 at any time, in this section referred to as the acquisition time, after 1 October 1996, the individual may deduct from the individual's tax otherwise payable under this Part for the year, in this section referred to as the emigration year, that includes the time immediately before the acquisition time, an amount not exceeding the lesser of

 (a) the amount by which the aggregate of all amounts each of which is the amount of any business-income tax or non-business-income tax paid by the individual for the taxation year to the government described in the second paragraph, that can reasonably be regarded as having been paid in respect of the portion of any gain or profit from the disposition of the property that accrued while the individual was resident in Canada and before the time the individual last ceased to be resident in Canada, exceeds the deduction relating to the portion of the gain or profit that is granted to the individual for the emigration year under subsection 2.21 of section 126 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)); and

 (b) the amount by which the amount of tax under this Part that was, after taking into account the application of this section to dispositions that occurred before the disposition time, otherwise payable by the individual for the emigration year, exceeds the amount of such tax that would otherwise have been payable if the property had not been deemed under section 785.2 to have been disposed of in the emigration year.

The government to which subparagraph a of the first paragraph refers is,

 (a) if the property is immovable property situated in a country other than Canada,

(i)  the government of that country, or