Canada: Highlights Of The Quebec Budget 2014-2015

On June 4, 2014, Carlos J. Leitão, Quebec Minister of Finance, tabled his government's first budget, which includes a number of tax measures for business.

The following is a summary of the principal budget measures announced. However, these measures do not have force of law until they are enacted by the National Assembly.

In addition to the various tax measures announced, the Minister of Finance expects to create the Québec Taxation Review Committee to make recommendations to the government on personal and corporate taxation. The government will announce the details of the committee's membership and its terms of reference shortly.

Measures relating to business

The tax rate for manufacturing SMEs is reduced

For purposes of Quebec provincial tax, the general tax rate for corporations is currently 11.9% (or 8% on the first $500,000 of annual income of an eligible business).

The government has announced a progressive reduction in the tax rate for manufacturing SMEs.

A "manufacturing SME" is a Canadian-controlled private corporation whose paid-up capital is less than $15 million and at least 25% of whose activities consist of manufacturing and processing.

A manufacturing SME whose proportion of activities attributable to manufacturing and processing activities is 50% or more may benefit from the maximum additional deduction rate of 2% (4% as of April 1, 2015). Where such proportion is between 50% and 25%, the additional deduction rate the manufacturing SME may claim will be reduced linearly. The additional deduction will apply to the amount regarding which the manufacturing SME benefits from the reduced tax rate of 8% up to a maximum of $500,000. This amount is gradually reduced for corporations with a paid-up capital of between $10 million and $15 million and totally eliminated for corporations whose paid-up capital is $15 million.

Additional deduction for transportation costs of remote manufacturing SMEs

In recognition of the higher transportation costs of manufacturing SMEs that are far from large centres, the budget introduces an additional deduction in computing income corresponding to:

  • 2% of gross income, with a ceiling of $100,000 per corporation, for manufacturing SMEs in the intermediate zone;1
  • 4% of gross income, with a ceiling of $250,000 per corporation, for manufacturing SMEs in the remote zone;2
  • 6% of gross income, with no ceiling per corporation, for manufacturing SMEs in the special remote zone.3

This additional deduction rate will apply for taxation years ending after June 4, 2014. However, where the taxation year of a manufacturing SME includes June 4, 2014, the additional deduction rate will apply in proportion to the number of days of such taxation year that follow June 4, 2014.

Reduced contribution to the Health Services Fund to boost innovation in SMEs

Until the end of 2020, SMEs that hire specialized employees will enjoy a holiday from the contribution to the Health Services Fund for such new specialized employees.

Specifically:

  • for employers whose payroll does not exceed $1 million, the reduction will completely eliminate the contribution to the Health Services Fund payable for such new specialized employees;
  • employers whose payroll is between $1 million and $5 million will receive a partial reduction in the contribution payable for such employees in inverse proportion to the size of their payroll.

Generally, this tax relief will apply in respect of any eligible employee who is hired after June 4, 2014.

Introduction of new tax incentives to foster the marine industry

To encourage Quebec shipowners, including cruise and excursion businesses, to modernize and renew their fleet of vessels through a qualified Quebec shipyard, there will be:

  • an additional capital cost allowance of 50% for the construction or renovation of vessels;
  • the creation of a tax-free reserve to fund maintenance, renovation or construction work on vessels.

In most instances, these changes will apply to tax-free reserves constituted after June 4, 2014 and to the cost of work performed on a Canadian vessel in an eligible Quebec shipyard between June 5, 2014 and December 31, 2023.

Amendments to the Mining Tax Act

To support the processing of minerals that require the use of a hydrometallurgy process, the government proposes to change the calculation of the processing allowance so that the cost of assets used in hydrometallurgy may be taken into consideration. Hydrometallurgy is a process for extracting various metals from an ore or concentrate and for purifying and separating them.

The Mining Tax Act will be amended to allow the value of gemstones to be determined outside the mine site with the authorization of the Minister of Energy and Natural Resources.

These amendments will apply to an operator for a taxation year commencing after December 31, 2013.

20% reduction in tax assistance allowed for businesses

To restore order to public finances and ensure adequate funding of public services, the government believes it is essential that the tax assistance allowed for businesses be tightened.

Therefore, the tax legislation will be amended to reduce the rate of the following refundable tax credits by 20%:

a) Refundable tax credit for technological adaptation services

b) Refundable tax credit for design

c) Refundable tax credits for the production of multimedia titles

d) Refundable tax credit for major employment generating projects

e) Refundable tax credit for job creation in the resource regions, the Vallée de l'aluminium and in Gaspésie and certain maritime regions of Quebec (reduction of the rate of the tax credit by 10% for each of the years 2014 and 2015)

f) Refundable tax credit for job creation in Gaspésie and certain maritime regions of Quebec in the fields of marine biotechnology, mariculture and marine products processing (reduction of the rate of the tax credit by 10% for each of the years 2014 and 2015)

g) Refundable tax credit for resources

h) Tax benefits relating to flow-through shares (reduction of both additional deductions for a total of 20%)

i) Refundable tax credit for international financial centres

j) Refundable tax credit relating to a new financial services corporation

k) Refundable tax credit for the hiring of employees by a new financial services corporation

l) Refundable tax credit pertaining to the diversification of markets of Quebec manufacturing companies

m) Refundable tax credit to foster the modernization of the tourism accommodation offering

n) Refundable tax credit for Quebec film and television production

o) Refundable tax credit for film production services

p) Refundable tax credit for film dubbing

q) Refundable tax credit for sound recording production

r) Refundable tax credit for the production of shows

s) Refundable tax credit for book publishing

t) Refundable tax credit for the production of multimedia environments or events staged outside Quebec

u) Refundable tax credit for on-the-job training periods

v) Refundable tax credit for manpower training in the manufacturing, forest and mining sectors

Generally, these changes will come into force after June 4, 2014.

Measures concerning scientific research and experimental development

20% reduction in tax assistance

A person who carries on a business in Canada and carries out in Quebec, or has carried out on his behalf in Quebec, scientific research and experimental development (R&D) under a contract may receive various refundable tax credits. The budget proposes to reduce the rate of the refundable tax credits for R&D by 20%.

Specifically, the rates of the various refundable tax credits for R&D will be amended as follows:

Tax credit

Current rate

New rate

 R&D salary tax credit

between 17.5% and 37.5%4

between 14% and 30%

 R&D university credit

35%

28%

Refundable tax credit concerning precompetitive research carried out in private partnership

35%

28%

Refundable tax credit concerning contributions paid to an eligible research consortium

35%

28%

These changes will apply to R&D expenditures incurred after June 4, 2014 or R&D expenditures incurred under a research contract entered into after June 4, 2014.

Elimination of the increase from 17.5% to 27.5% in the rate of the refundable tax credit for R&D salary in relation to biopharmaceutical activities

Currently, an eligible biopharmaceutical corporation may receive, for a taxation year, a refundable tax credit for R&D salary equal to 27.5% of its eligible R&D expenditures for such year, which percentage may be increased to 37.5%.

The budget proposes to eliminate this increase in the rate of the refundable tax credit for R&D salary in relation to an eligible biopharmaceutical corporation commencing on June 4, 2014. Accordingly, Investissement Québec will not accept applications for an initial certificate submitted by a corporation as of that date.

The rate of the tax credit will therefore be reduced to 22% and the increase in the rate will be a maximum of 30% in the case of a Canadian-controlled corporation.

However, a corporation previously recognized by Investissement Québec as an eligible biopharmaceutical corporation may continue to benefit from the increase in the rate of the refundable tax credit for R&D salary for its taxation year including June 4, 2014.

This change will apply to R&D expenditures incurred after June 4, 2014, or R&D expenditures incurred under a research contract entered into on or after June 4, 2014.

Refundable tax credit for the development of e-business (TCEB)

The TCEB, at a rate of 30%, is granted to a qualified corporation that pays salaries to eligible employees carrying on an eligible activity. The amount of the tax credit may not exceed $20,000 per employee annually.

The rate of this tax credit will be reduced to 24% for salaries incurred regarding an eligible employee after June 4, 2014. In addition, the annual cap of $20,000 per employee will be maintained and will not be raised to $22,500 as of January 1, 2016 as was previously announced.

Tax credit for investments relating to manufacturing and processing equipment

A qualified corporation that acquires qualified property may receive, regarding the eligible expenses it incurred, the tax credit for investments relating to manufacturing and processing equipment.

Elimination of the increase in the rate of the tax credit for investments for certain administrative regions and RCMs and reduction of the base rate and the increases in the rate of the tax credit for investments

The budget proposes to amend the tax legislation to eliminate the rise of five percentage points in the increase in the rate of the tax credit for investments that is granted to a qualified corporation that does not receive the tax credit for job creation regarding qualified property acquired for use mainly in the eastern part of the Bas-Saint-Laurent administrative region or in an intermediate zone. The legislation will also be amended so that the base rate and the increases in the rate of the tax credit for investments are reduced by 20%.

Zone

Current rate

New rate

 Remote zone

 between 5% and 40%

 between 4% and 32%

 Eastern part of Bas Saint-Laurent

between 5% and 30% or 35%

 between 4% and 24%

 Intermediate zone

between 5% and 20% or 25%

 between 4% and 16%

 Other zones

between 5% and 10 %

 between 4% and 8%

The other rules that apply for the determination of the rate of the tax credit for investments applicable to a qualified corporation regarding the eligible expenses it incurred to acquire a qualified property will apply with the necessary adaptations.

Elimination of the additional increase in the rate of the tax credit for investments for manufacturing SMEs

The additional increase of ten percentage points in the rate of the tax credit for investments that applies regarding expenses eligible for the additional increase incurred by a qualified corporation will be eliminated.

Application date

Generally, these changes to the tax credit for investments will apply regarding eligible expenses incurred after June 4, 2014.

However, these changes will not apply regarding eligible expenses incurred between June 5, 2014 and June 30, 2015, to acquire a qualified property no later than June 4, 2014, or to acquire a qualified property after such date, where the qualified property is acquired in accordance with a written obligation entered into no later than June 4, 2014, or the qualified property is a property whose construction was under way on June 4, 2014.

Refundable tax credit relating to buildings used in the course of manufacturing or processing activities by a Quebec manufacturing SME

A refundable tax credit relating to buildings used in the course of manufacturing or processing activities by a Quebec manufacturing SME was introduced on October 7, 2013.

A qualified corporation that acquires a building or makes an addition to a building may receive, under certain conditions, a tax credit for buildings regarding its eligible expenditures relating to such building or addition.

The tax credit for buildings will be eliminated as of June 4, 2014. Accordingly, expenditures relating to a building incurred after June 4, 2014 will not give rise to the tax credit for buildings.

However, a qualified corporation or a qualified corporation that is a member of a qualified partnership may continue to receive the tax credit for buildings regarding its expenditures relating to a qualified building, or its share of the expenditures relating to a qualified building incurred after June 4, 2014, but before July 1, 2015, if such expenditures are incurred to acquire a building, or an addition to a building, no later than June 4, 2014, or for such an acquisition after that date where such property is acquired in accordance with a written obligation entered into no later than June 4, 2014, or where construction of such property by the qualified corporation or by the qualified partnership, or on its behalf, was under way on June 4, 2014.

Refundable tax credit for the integration of information technologies in manufacturing SMEs

Information Bulletin 2013-10 introduced a new temporary refundable tax credit to support Quebec manufacturing SMEs that want to invest in technology and integrate information technologies in their business processes.

In the context of the revision of preferential measures for businesses, Investissement Québec will stop issuing the certificates necessary to receive the refundable tax credit for the integration of information technologies in manufacturing SMEs as of June 4, 2014, and for the entire period of the revision of this fiscal measure.

Other measures

Measures applicable to labour funds

Currently, there is no annual cap on the issue of shares by the Fonds de solidarité FTQ. Meanwhile, there is a $200 million annual cap on the issue of shares by the Fondaction for its 2013-2014 fiscal year. The cap was to be increased to $225 million for 2014-2015.

The government is announcing that share issues by labour funds will be capped in their 2014-2015 fiscal year.Consequently, for their fiscal year commencing on June 1, 2014, the cap will be:

  • $650 million for the Fonds de solidarité FTQ;
  • $200 million for the Fondaction.

Furthermore, in the event that, at the end of its 2014-2015 fiscal year, the amount of paid-up capital issued during that fiscal year exceeds the maximum authorized amount for the year, the Fonds de Solidarité FTQ will have to pay a special tax equal to 15% of the excess and the Fondaction will have to pay a special tax equal to 25% of the excess.

Measures applicable to Capital régional et coopératif Desjardins

Since Capital régional et coopératif Desjardins (CRCD) was formed, the government has supported its mission by allowing individuals who acquire its shares to claim a tax benefit. The budget contains various measures that affect CRCD, including the following:

  • to encourage CRCD investments, the government is announcing that it intends to include in the resource regions covered by the program regional county municipalities (RCMs) outside resource regions that are facing substantial economic difficulties;
  • the government is announcing that an investment that does not include any security or hypothec made by CRCD, after December 31, 2013 and before January 1, 2018, in an eligible entity located in a territory identified as facing economic difficulties will, up to an amount of $500,000, be deemed grossed up by 100% for purposes of the investment requirement;
  • other territories and RCMs will be considered for purposes of the gross-up relating to an investment made in a territory identified as facing economic difficulties;
  • the applicable rate for purposes of the calculation of the tax credit for the acquisition of CRCD shares will be reduced from 50% to 45% for shares acquired after February 28, 2014. Accordingly, the maximum amount an individual may deduct in calculating his tax otherwise payable for a given taxation year for shares acquired during a capital-raising period beginning in such year will decline from $2,500 to $2,250 and the special tax relating to excessive capitalization will be adjusted accordingly.

Transfer to Revenu Québec of responsibilities relating to the application of the Mining Tax Act

Currently, the ministère de l'Énergie et des Ressources naturelles is responsible for the Mining Tax Act. Since most of the information that operators send to the ministère de l'Énergie et des Ressources naturelles in the course of filing their mining tax returns is also required by Revenu Québec, the government is announcing that responsibility for enforcing the Mining Tax Act will be assumed, as of April 1, 2015, by the Minister of Revenue.

Salary paid for the purposes of determining various employer contributions

For purposes of application of certain legislation,5 the budget proposes to change the definition of "base wages" to include any amount paid, allocated, granted or awarded to the employee because of, or in the course of his office or employment by a person not at arm's length with the given employer, unless such amount would be excluded from the employee's base wages if it were paid, allocated, granted or awarded by the employer.

Harmonization with certain technical measures included in the federal budget of February 11, 2014

The budget essentially replicates the measures contained in the previous provincial government's budget tabled on February 20, 2014, regarding harmonization with the measures contained in the federal budget of February 11, 2014.

Harmonization with certain technical measures made public on April 8, 2014

On April 8 2014, the Department of Finance Canada made public, in a news release, draft legislative and regulatory proposals making technical changes to the income tax system and the goods and services tax and harmonized sales tax (GST/HST) system to improve their fairness and certainty.

Measures relating to income tax

The measures relating to income tax deal with the Canadian Film or Video Production Tax Credit and the communication of information. The ministère des Finances had already made Québec's position on these proposals known and accordingly these measures will not be retained because Quebec's tax system has its own features regarding the tax assistance granted in relation to a film or television production and the communication of information.

Measures relating to the GST/HST

In accordance with the principle of general harmonization of the Quebec sales tax (QST) system with the GST/HST system, Quebec's tax system will be changed to incorporate, with adaptations on the basis of its general principles and specific features arising from the provincial context, the following federal measures:

  • making technical changes to the provisions concerning real property to ensure consistent treatment of different types of housing and to see that the special valuation rule for subsidized housing applies as it should within the framework of the rules on the place of supply and in the context of a change in the tax rate;
  • clarifying the application of GST/HST public service body rebates in relation to non-profit organizations that operate certain health care facilities;
  • zero-rating precious metals refining services supplied to non-resident persons not registered for the purposes of the GST/HST system;
  • simplifying the tax treatment of the temporary importation of certain railcars;
  • codifying the longstanding relieving provisions related to the tax treatment upon re-entry into Canada of Canadian goods on which the GST/HST has already been paid;
  • updating certain legislative references stipulated in the regulations, other than the reference stipulated in the Taxes, Duties and Fees (GST/HST) Regulations, which has no equivalent in the QST system.

Measures to fight tax evasion

The budget essentially repeats the measures that were announced in the previous provincial government budget tabled on February 20, 2014.

The following measures are also proposed:

  • to more effectively address false billing fraud, the government is announcing that Revenu Québec will be monitoring at-risk registrations more closely to more effectively identify companies that commit such fraud;
  • in a context where construction contractors bid on, or carry out construction work or cause it to be carried out without holding a valid licence from the Régie du bâtiment du Québec, the government is announcing that it intends to improve the means of identifying contractors that are in violation of the law. To this end the Régie du bâtiment du Québec will use more site reports from the Commission de la construction du Québec;
  • the government is announcing that it will intensify its actions to fight the illicit tobacco trade through ACCES tobacco partners.

Measures relating to individuals

The Budget proposes certain measures relating to individuals, including a change to the mechanism for splitting retirement income between spouses, an increase in the tax credits for experienced workers and the introduction of a refundable tax credit for seniors' activities.

Revival of the Plan Nord

The government is taking the opportunity presented by the budget to revive and enhance the efforts undertaken in connection with the Plan Nord. Thus, in addition to setting up the Société du Plan Nord, the budget provides for a number of substantial investments amounting to just over $1.125 billion. The government will present its detailed vision, policy options and governance structure for the Plan Nord in the coming months.

Footnotes

1 Capitale-Nationale (except for the municipalities included in the Quebec City metropolitan census region (MCR) and the Charlevoix-Est RCM); Chaudière-Appalaches (except for the municipalities included in the Quebec City MCR); Lanaudière, (except for the municipalities included in the Montréal MCR); Laurentides (except for the municipalities included in the Montréal MCR); Montérégie (except for the municipalities included in the Montréal MCR); Centre-du-Québec; the western portion of Estrie, including the Ville de Sherbrooke and the Memphrémagog, Val Saint François, des Sources and Coaticook RCMs; the southern portion of Mauricie, including the cities of Trois-Rivières and Shawinigan as well as the Chenaux and Maskinongé RCMs; and Papineau RCM (Outaouais).

2 Bas-Saint-Laurent; Saguenay–Lac-Saint-Jean; Abitibi-Témiscamingue; Côte-Nord (except for the municipality of L'Île-d'Anticosti and the Golfe-du-Saint-Laurent RCM); Nord-du-Québec (excluding the Kativik Regional Government); Gaspésie,(including the Avignon, Bonaventure, Côte-de-Gaspé, La Haute-Gaspésie and Rocher-Percé RCMs); the eastern portion of Estrie (including the Granit and Haut-Saint-François RCMs); Antoine-Labelle RCM (Laurentides); La Tuque urban agglomeration and Mékinac RCM (Mauricie); Pontiac and La Vallée-de-la-Gatineau RCMs (Outaouais); and Charlevoix-Est RCM (Capitale-Nationale).

3 Municipality of L'Île-d'Anticosti (Côte-Nord); Îles-de-la-Madeleine urban agglomeration; Golfe-du-Saint-Laurent RCM (Côte-Nord); Kativik Regional Government (Nord-du-Québec).

4 This refundable tax credit is at a rate of 17.5% but can be up to 37.5% for a Canadian-controlled corporation.

5 Act respecting the Québec Pension Plan, the Act respecting the Régie de l'assurance maladie du Québec, the Act respecting labour standards, the Act respecting industrial accidents and occupational diseases, and the Act to promote workforce skills development and recognition.

Norton Rose Fulbright Canada LLP

Norton Rose Fulbright is a global legal practice. We provide the world's pre-eminent corporations and financial institutions with a full business law service. We have more than 3800 lawyers based in over 50 cities across Europe, the United States, Canada, Latin America, Asia, Australia, Africa, the Middle East and Central Asia.

Recognized for our industry focus, we are strong across all the key industry sectors: financial institutions; energy; infrastructure, mining and commodities; transport; technology and innovation; and life sciences and healthcare.

Wherever we are, we operate in accordance with our global business principles of quality, unity and integrity. We aim to provide the highest possible standard of legal service in each of our offices and to maintain that level of quality at every point of contact.

Norton Rose Fulbright LLP, Norton Rose Fulbright Australia, Norton Rose Fulbright Canada LLP, Norton Rose Fulbright South Africa (incorporated as Deneys Reitz Inc) and Fulbright & Jaworski LLP, each of which is a separate legal entity, are members ('the Norton Rose Fulbright members') of Norton Rose Fulbright Verein, a Swiss Verein. Norton Rose Fulbright Verein helps coordinate the activities of the Norton Rose Fulbright members but does not itself provide legal services to clients.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
 
In association with
Related Video
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration
Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:
  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.
  • Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.
    If you do not want us to provide your name and email address you may opt out by clicking here
    If you do not wish to receive any future announcements of products and services offered by Mondaq you may opt out by clicking here

    Terms & Conditions and Privacy Statement

    Mondaq.com (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

    Use of www.mondaq.com

    You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about Mondaq.com’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.

    Disclaimer

    Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

    The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.

    Registration

    Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

    • To allow you to personalize the Mondaq websites you are visiting.
    • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
    • To produce demographic feedback for our information providers who provide information free for your use.

    Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

    Information Collection and Use

    We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

    We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to unsubscribe@mondaq.com with “no disclosure” in the subject heading

    Mondaq News Alerts

    In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.

    Cookies

    A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

    Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

    Log Files

    We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.

    Links

    This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

    Surveys & Contests

    From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.

    Mail-A-Friend

    If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.

    Emails

    From time to time Mondaq may send you emails promoting Mondaq services including new services. You may opt out of receiving such emails by clicking below.

    *** If you do not wish to receive any future announcements of services offered by Mondaq you may opt out by clicking here .

    Security

    This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to webmaster@mondaq.com.

    Correcting/Updating Personal Information

    If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to EditorialAdvisor@mondaq.com.

    Notification of Changes

    If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

    How to contact Mondaq

    You can contact us with comments or queries at enquiries@mondaq.com.

    If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at problems@mondaq.com and we will use commercially reasonable efforts to determine and correct the problem promptly.

    By clicking Register you state you have read and agree to our Terms and Conditions