Income Earned in Quebec Income Tax Remission Order, 1988 (SI/89-157)

Regulations are current to 2017-09-27

Income Earned in Quebec Income Tax Remission Order, 1988

SI/89-157

FINANCIAL ADMINISTRATION ACT

Registration 1989-07-05

Order Respecting the Remission of Income Tax in Respect of Certain Income of Individuals Earned in the Province of Quebec (1988)

P.C. 1989-1204 1989-06-22

Her Excellency the Governor General in Council, considering that it is in the public interest to do so, is pleased hereby, on the recommendation of the Minister of Finance and the Treasury Board, pursuant to section 23 of the Financial Administration Act, to make the annexed Order respecting the remission of income tax in respect of certain income of individuals earned in the Province of Quebec (1988).

Short Title

 This Order may be cited as the Income Earned in Quebec Income Tax Remission Order, 1988.

Interpretation

 In this Order,

Act

Act means the Income Tax Act; (Loi)

Regulations

Regulations means the Income Tax Regulations. (règlement)

Remission to Individuals Who Did Not Reside in Canada at Any Time in a Taxation Year

 Remission is hereby granted to any individual who did not reside in Canada at any time in a taxation year of the amount, if any, by which

  • (a) the tax, interest and penalties paid or payable under the Act by that individual in respect of that taxation year

exceeds

  • (b) the tax, interest and penalties that would have been payable by that individual under the Act in respect of that taxation year if, for the purpose of determining that person’s income earned in that year in the Province of Quebec, section 2602 of the Regulations read as follows:

    • “2602 (1) Except as provided in subsection (2), where an individual did not reside in Canada at any time in a taxation year, his income earned in the taxation year in a particular province is the aggregate of

      • (a) that part of the amount of his income from an office or employment that is included in computing his taxable income earned in Canada for the year by virtue of subparagraph 115(1)(a)(i) of the Act that is reasonably attributable to the duties performed by him in the province,

      • (b) his income for that year earned in the province as determined in the manner set forth in section 4 of the Income Earned in Quebec Income Tax Remission Order, 1988,

      • (c) his income for that year from carrying on business earned in the province, determined as hereinafter set forth in this Part,

      • (d) the taxable capital gains in the province included in computing his taxable income earned in Canada for the year by virtue of subparagraph 115(1)(a)(iii) of the Act from dispositions of property, each of which was a disposition of a property or an interest therein that was

        • (i) real property situated in the province or an option in respect thereof, or

        • (ii) any other capital property used by him in carrying on a business in the province,

        determined as hereinafter set forth in this Part, and

      • (e) the income of the individual for that year from the disposition of a life insurance policy under which a person resident in the province is, at the time the policy was issued or effected, the person whose life was insured.

    • (2) Where the aggregate of the amount of an individual’s income as determined under subsection (1) for all provinces for a taxation year exceeds his income described in subsection 115(1) of the Act, the amount of his income earned in the taxation year in a particular province shall be that proportion of his income so described that the amount of his income earned in the taxation year in the province as determined under subsection (1) is of the aggregate of all those amounts.

    • (3) Where, in a taxation year, a non-resident individual has disposed of real property situated in a particular province or an interest therein, or an option in respect thereof, any taxable capital gain from that disposition shall be a taxable capital gain in that particular province.

    • (4) Except as provided in subsection (5), where, in a taxation year, a non-resident individual has disposed of any capital property, other than property referred to in subsection (3), used by him in carrying on a business in Canada, the proportion of any taxable capital gain from that disposition that

      • (a) his income for the year from carrying on that business in a particular province

      is of

      • (b) his income for the year from carrying on that business in Canada,

      shall be a taxable capital gain in that particular province.

    • (5) Where in a taxation year a non-resident individual

      • (a) had no permanent establishment in Canada, and

      • (b) disposed of any capital property, other than property referred to in subsection (3), used by him in a previous year in carrying on a business in Canada,

      the proportion of any taxable capital gain from that disposition that

      • (c) his income from carrying on that business in a particular province for the last preceding taxation year in which he had income from carrying on that business in a province

      is of

      • (d) his income for the year, referred to in paragraph (c), from carrying on that business in Canada,

      shall be a taxable capital gain in that particular province.”

  • SI/98-47, s. 1(T).

 Where an individual who did not reside in Canada at any time in a taxation year was

  • (a) a student in full-time attendance at an educational institution in the Province of Quebec that is a university, college or other educational institution providing courses at a post-secondary school level,

  • (b) a student attending, or a teacher teaching at, an educational institution outside Canada that is a university, college or other educational institution providing courses at a post-secondary school level who had, in any previous year, ceased to be resident in the Province of Quebec in the course of or subsequent to moving to attend or to teach at, as the case may be, that institution,

  • (c) an individual who had, in any previous year, ceased to be resident in the Province of Quebec in the course of or subsequent to moving to carry on research or any similar work under a grant received by him to enable him to carry on that research or work, or

  • (d) an individual who had, in any previous year, ceased to be resident in the Province of Quebec and who was, in the taxation year, in receipt of remuneration in respect of an office or employment that was paid to him directly or indirectly by

    • (i) the Province of Quebec,

    • (ii) any corporation, commission or association the shares, capital or property of which were at least 90 per cent owned by the Province of Quebec, or a wholly-owned subsidiary corporation to such a corporation, commission or association, on condition that no person other than Her Majesty in right of the Province of Quebec had any right to the shares, capital or property of that corporation, commission, association or subsidiary or a right to acquire the shares, capital or property,

    • (iii) an educational institution, other than an educational institution of the Government of Canada, in the Province of Quebec that was

      • (A) a university, college or other educational institution providing courses at a post-secondary school level that received or was entitled to receive financial support from the Province of Quebec,

      • (B) a school operated by the Province of Quebec, or by a municipality thereof or by a public body thereof performing a function of government, or a school operated on behalf of that Province, municipality or public body, or

      • (C) a secondary school providing courses leading to a certificate or diploma that is a requirement for entrance to a college or university, or

    • (iv) an institution in the Province of Quebec, other than an institution of the Government of Canada, supplying health services or social services, or both, that received or was entitled to receive financial support from the Province of Quebec,

there shall be included, for the purposes of this Order, in computing his income earned in the taxation year in the Province of Quebec, the aggregate of

  • (e) the amount of any remuneration in respect of an office or employment that was paid to him directly or indirectly by the Province of Quebec or any corporation, commission, association or institution referred to in paragraph (d), other than an institution of the Government of Canada, or by a wholly-owned corporation subsidiary to such corporation, commission or association, and that was received by the individual who did not reside in Canada in the year, except to the extent that such remuneration was attributable to the duties of an office or employment performed by him outside Canada, and that is

    • (i) subject to an income or profits tax imposed by the government of a country other than Canada, or

    • (ii) paid in connection with the selling of property, the negotiating of contracts or the rendering of services for his employer, or a foreign affiliate of his employer, or any other person with whom his employer does not deal at arm’s length, in the ordinary course of a business carried on by his employer, that foreign affiliate or that other person,

  • (f) amounts that would be required by paragraph 56(1)(n) or (o) of the Act to be included in computing the individual’s income for the year if

    • (i) the individual were resident in Canada throughout the year,

    • (ii) the references in subparagraph 56(1)(n)(i) and paragraph 56(1)(o) of the Act to “received by the taxpayer in the year” were read as references to “received by the taxpayer in the year from the Province of Quebec or any corporation, commission, association or institution referred to in paragraph 4(d) of the Income Earned in Quebec Income Tax Remission Order, 1988, other than an institution of the Government of Canada, or from a wholly-owned corporation subsidiary to such a corporation, commission or association”, and

    • (iii) the reference to “$500” in paragraph 56(1)(n) of the Act were read as a reference to “the proportion of $500 that the amount determined under subparagraph (i) is of the amount that would be so determined if the requirements of subparagraphs 4(f)(i) and (ii) of the Income Earned in Quebec Income Tax Remission Order, 1988 were not taken into account”,

  • (g) amounts that would be required by subsection 56(8) of the Act to be included in computing the individual’s income for the year if the individual were resident in Canada throughout the year, and

  • (h) amounts that would be required by paragraph 56(1)(q) of the Act to be included in computing his income for the year if he were resident in Canada throughout the year,

minus the amount that would be deductible in computing his income for the year by virtue of section 62 of the Act if

  • (i) that section were read without reference to paragraph (1)(a) thereof,

  • (j) that section were applicable in computing the taxable income of individuals who did not reside in Canada, and

  • (k) the amounts described in subparagraph (1)(f)(ii) thereof were the amounts described in paragraph (f).

  • SI/98-47, s. 2(T).
 
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