3 August 2004 Internal T.I. 2004-0078781I7 F - Déduction de l'impôt sur la masse salariale -- summary under Income-Producing Purpose

For a taxpayer referred to in s. 1159.2(e) of the Taxation Act (Quebec), the amount of tax imposed thereunder was 1% of the wages paid in the year. In certain circumstances, the amount might be reduced as a function of the value of the supplies of financial services in relation to the value of all supplies. The Directorate stated:

[T]he tax payable under subsection (e) of section 1159.2 … is a payroll tax that may be deducted in computing the taxpayer's income.