Income Tax Act — I-3.3 127.46
meet the prevailing wage requirements for a designated work site for a taxation year, the incentive claimant may within one year after receipt of the notification, or such longer period as is acceptable to the Minister, cause each covered worker to be paid the top-up amount determined under subsection (12). Top-up amount (12) For each covered worker in respect of an incentive claimant, the top-up amount referred to in subsection (11) for a taxation year shall equal or exceed the amount determined by the formula A − B + C where A is the amount that the covered worker would have received or benefited from, in respect of the worker’s employment at the designated work site during the taxation year, had the covered worker been paid in accordance with the prevailing wage requirements in paragraph (3)(a) or subparagraph (3)(b)(i), as applicable; B is the amount that the worker actually received or benefited from, in respect of the worker’s employment at the designated work site during the taxation year; and C is interest on the difference between the description of A and the description of B, calculated from the beginning of the taxation year to the time of payment at the prescribed rate specified in paragraph 4301(a) of the Income Tax Regulations . Top-up payment not made (13) For any covered worker in respect of whom a top-up amount is not paid under subsection (11), the incentive claimant shall pay to the Receiver General, as a penalty under this Act, 120% of the amount determined by the formula in subsection (12). Tax treatment of top-up amount (14) A top-up amount that is paid to a covered worker (a) is deemed to be (i) salary and wages of the worker for the year in which it is received, and (ii) deductible in computing income by the payor for the year in which it is paid; and (b) does not qualify for any specified tax credit. Exception (15) This section does not apply to the preparation or installation of clean technology property as defined in subsection 127.45(1) that is described in subparagraph (d)(i) of Class 43.1 in Schedule II to the Income Tax Regulations or in Class 56 in Schedule II to the Income Tax Regulations . Deemed reasonable efforts (16) For the purposes of this section, an incentive claimant is deemed to have satisfied the requirement in paragraph (5)(a) or (b), as the case may be, in respect of hours of labour at a designated work site for an installation taxation year if the following conditions are met: (a) at least every four months, the incentive claimant (i) posts a bona fide job advertisement, seeking sufficient apprentices to perform those hours of labour in respect of the designated work site, that (A) includes a commitment to facilitate participation of apprentices in a Red Seal trade program and a statement that the job opportunity is open to both existing employees and new hires, and (B) is open and readily accessible on the Job Bank website of the Government of Canada and at least two other websites either (I) on a continuous basis throughout the year, or (II) for at least 30 days from the time of posting, (ii) communicates with a trade union (which, if the designated work site is in Quebec, is a trade union recognized under applicable provincial law and, if the designated work site is outside of Quebec, is an affiliate of Canada’s Building Trades Unions) and at least one secondary school or post-secondary educational institution for the purpose of facilitating the hiring of the apprentice positions described in the job advertisement, and (iii) receives from the trade union confirmation in writing that the trade union has provided as many apprentices as reasonably possible for work at the designated work site during the installation year, unless the trade union fails to respond within five business days of a request; (b) the incentive claimant reviews and duly considers all applications received in response to the advertisement for apprenticeship opportunities that are offered directly by the ince