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

Regulations are current to 2017-10-13

Remission to Individuals Who Did Not Reside in a Province, the Northwest Territories or the Yukon Territory on the Last Day of the Taxation Year

  •  (1) Subject to subsection (2), remission is hereby granted to any individual who did not reside in a province on the last day of a taxation year of the amount, if any, by which

    • (a) income 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 the individual had resided in the Province of Quebec on the last day of the taxation year.

  • (2) Subsection (1) is applicable to an individual who

    • (a) sojourned in the Province of Quebec for a period of, or periods the aggregate of which is, 183 days or more and was ordinarily resident outside Canada;

    • (b) was at any time in the year an agent-general, officer or servant of the Province of Quebec and was resident in that Province immediately prior to his appointment or employment by that Province;

    • (c) performed services at any time in the year under an international development assistance program prescribed under Part XXXIV of the Regulations and was at any time

      • (i) in the three month period preceding the day on which those services commenced, resident in the Province of Quebec, and

      • (ii) in the six month period preceding the day on which those services commenced, an officer or servant of

        • (A) the Province of Quebec,

        • (B) 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 corporation subsidiary 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 those shares or that capital or property of such corporation, commission, association or subsidiary or a right to acquire those shares or that capital or property,

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

          • (I) 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,

          • (II) 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

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

        • (D) 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;

    • (d) was resident in Canada in any previous year and was, at any time in the year, the spouse of a person described in paragraph (b) or (c) living with that person; or

    • (e) was, at any time in the year, a child of a person described in paragraph (b) or (c) and was living with the person in a self-contained domestic establishment that the person, whether alone or jointly with one or more other persons, maintained and in which the person lived and actually supported the child who, at that time, was

      • (i) wholly dependent for support on the person, or the person and the other person or persons, and

      • (ii) either under 18 years of age or so dependent by reason of mental or physical infirmity.

  • (3) Paragraph (2)(d) is not applicable where the spouse of an individual described in paragraph (2)(c) is also an individual described in paragraph (2)(c).

  • SI/98-47, s. 3(T).

Remission to Individuals Who Resided in the Province of Quebec on the Last Day of a Taxation Year

  •  (1) Remission is hereby granted to any individual who resided in the Province of Quebec on the last day of a taxation year of the amount, if any, by which

    • (a) the tax, interest and penalties 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 in respect of that taxation year if

      • (i) if subsections 2601(1) and (2) of the Regulations read as follows:

        • “2601 (1) Notwithstanding subsection (4) and section 2603, where an individual resided in a particular province on the last day of a taxation year and had no income for the year from a business with a permanent establishment in another province, his income earned in the taxation year in the province is his income for the year.

        • (2) Notwithstanding subsection (4) and section 2603, where an individual resided in a particular province on the last day of a taxation year and had income for the year from a business with a permanent establishment in any other province, his income earned in the taxation year in the province is the amount, if any, by which

          • (a) his income for the year

          exceeds

          • (b) the aggregate of his income for the year from carrying on business earned in each other province, determined as hereinafter set forth in this Part.”,

      • (ii) the definition business-income tax in subsection 126(7) of the Act read as follows:

        business-income tax

        business-income tax paid by a taxpayer for a taxation year in respect of businesses carried on by the taxpayer in a country other than Canada (in this definition referred to as the “business country”) means such portion of 55 % of any income or profits tax paid by the taxpayer for the year to the government of any country other than Canada or to the government of a state, province or other political subdivision of any such country as can reasonably be regarded as tax in respect of the income of the taxpayer from any business carried on by the taxpayer in the business country, but does not include a tax, or the portion of a tax, that can reasonably be regarded as relating to an amount that

        • (a) any other person or partnership has received or is entitled to receive from that government, or

        • (b) was deductible under subparagraph 110(1)(f)(i) in computing the taxpayer’s taxable income for the year;”, and

      • (iii) the definition tax for the year otherwise payable under this Part in subsection 126(7) of the Act read as follows:

        tax for the year otherwise payable under this Part

        tax for the year otherwise payable under this Part means the amount determined by the formula

        A - B

        where

        A
        is the tax payable under this Part for the year after taking into account the requirements of subparagraph 6(1)(b)(i) of the Income Earned in Quebec Income Tax Remission Order, 1988, but before making any deduction under any of sections 121, 122.3, 126.1, 127 and 127.2 to 127.4 and this section, and
        B
        is the amount, if any, deemed by subsection 120(2) to have been paid on account of tax payable under this Part for the year after taking into account the requirements of subparagraph 6(1)(b)(i) of the Income Earned in Quebec Income Tax Remission Order, 1988;”.
  • (2) In subsection (1), a reference to the last day of a taxation year shall, in the case of an individual who resided in the Province of Quebec at any time in the year and ceased to reside in Canada before the end of the year, be deemed to be a reference to the last day in the year on which the individual resided in Canada.

  • SI/98-47, s. 4(T).

Deductions and Remittances

 Notwithstanding paragraph 102(1)(a), subsection 102(2), paragraph 103(1)(m) and subparagraphs 103(4)(a)(xiii), (b)(xiii) and (c)(xiii) of the Regulations, the amount to be deducted or withheld by an employer and remitted to the Receiver General pursuant to Part I of the Regulations shall, in the case of

  • (a) an individual referred to in section 4 in respect of the remuneration referred to in paragraph 4(e), and

  • (b) an individual referred to in paragraph 5(2)(b), (c), (d) or (e) in respect of remuneration received from the Province of Quebec or from any corporation, commission, association or institution referred to in paragraph 5(2)(c), other than an institution of the Government of Canada, or from a wholly-owned corporation subsidiary to such corporation, commission or association,

be determined as if the employee reported for work at an establishment of the employer in Quebec.

  • SI/98-47, s. 5(F).

 Every individual to whom an amount was remitted under section 5 for a taxation year shall reimburse that amount, plus interest thereon to the day of payment, to Her Majesty in right of Canada to the extent of the amount of tax payable under the Taxation Act, R.S.Q., c. I-3, for that year that the individual, as a result of an objection served on the Minister of Revenue of the Province of Quebec, a claim filed in any court or a complaint made to any tribunal, was declared not to be liable to pay on the ground that the individual was not subject to the tax levied under that Act because of the individual’s place of residence.

  • SI/98-47, s. 6.
 
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