Income Tax Act — I-3.3 125.4
nditure of the corporation in respect of the production for a preceding taxation year before the end of which the principal filming or taping of the production began exceeds (ii) where the corporation is a parent, the total of all amounts each of which is an amount that is the subject of an agreement in respect of the production referred to in paragraph (c) of the definition labour expenditure between the corporation and its wholly-owned corporation, and (b) the amount determined by the formula A - B where A is 60% of the amount by which (i) the total of all amounts each of which is an expenditure by the corporation in respect of the production that is included in the cost to, or in the case of depreciable property the capital cost to, the corporation or any other person or partnership of the production at the end of the taxation year, exceeds (ii) the total of all amounts each of which is an amount of assistance in respect of that cost that, at the time of the filing of its return of income for the year, the corporation or any other person or partnership has received, is entitled to receive or can reasonably be expected to receive, that has not been repaid before that time pursuant to a legal obligation to do so (and that does not otherwise reduce that cost), and B is the total of all amounts each of which is the qualified labour expenditure of the corporation in respect of the production for a preceding taxation year before the end of which the principal filming or taping of the production began. ( dépense de main-d’oeuvre admissible ) salary or wages does not include an amount (a) described in section 7; (b) determined by reference to profits or revenues; or (c) paid to a person in respect of services rendered by the person at a time when the person was non-resident, unless the person was at that time a Canadian citizen. ( traitement ou salaire ) script material , in respect of a production, means written material describing the story on which the production is based and, for greater certainty, includes a draft script, an original story, a screen story, a narration, a television production concept, an outline or a scene-by-scene schematic, synopsis or treatment. ( texte ) COVID-19 — production commencement time (1.1) The reference to “two years” in subparagraph (b)(iii) of the definition production commencement time in subsection (1) is to be read as a reference to “three years” in respect of film or video productions for which the labour expenditure of the corporation in respect of the production for the taxation year ending in 2020 or 2021 was greater than nil. Rules governing labour expenditure of a corporation (2) For the purposes of the definitions labour expenditure and qualified labour expenditure in subsection (1), (a) remuneration does not include remuneration (i) determined by reference to profits or revenues, or (ii) in respect of services rendered by a person at a time when the person was non-resident, unless the person was at that time a Canadian citizen; (b) services referred to in paragraph (b) of that definition that relate to the post-production stage of the production include only the services that are rendered at that stage by a person who performs the duties of animation cameraman, assistant colourist, assistant mixer, assistant sound-effects technician, boom operator, colourist, computer graphics designer, cutter, developing technician, director of post production, dubbing technician, encoding technician, inspection technician — clean up, mixer, optical effects technician, picture editor, printing technician, projectionist, recording technician, senior editor, sound editor, sound-effects technician, special effects editor, subtitle technician, timer, video-film recorder operator, videotape operator or by a person who performs a prescribed duty; (c) that definition does not apply to an amount to which section 37 applies; and (d) an expenditure incurred in respect of a film or video production by a qualif