Job Growth and Tax Reduction Act, 1997
EXPLANATORY NOTE
The Bill implements several measures contained in the 1997 Budget.
PART I INCOME TAX ACT
Under the Income Tax Act, the rate of personal income tax is reduced from 49 per cent to 48 per cent of basic federal tax for 1997 and to 45 per cent of basic federal tax for 1998 and subsequent years. The Government intends to provide, by regulation, that tax at the rate of 47 per cent is to be withheld at source from July 1, 1997 to the end of the year to reflect the reduction in the tax rate for the whole of 1997.
The Fair Share Health Care Levy is adjusted to reflect the change in income tax rates.
Technical amendments are made to update statutory references to federal legislation, to adopt amendments made to federal income tax collection remedies and to make administrative changes. The Minister of Finance is authorized to delegate to the Minister of National Revenue the discretion to remit taxes in specified circumstances.
PART II LAND TRANSFER TAX ACT
The Land Transfer Tax Act now provides that non-residents of Canada pay a higher rate of land transfer tax than residents pay on the purchase of farm, agricultural or recreational land, woodlands and orchards. An amendment eliminates the higher tax rate for non-residents.
The current Act permits the refund of land transfer taxes payable on the purchase on or before before March 31, 1997 of a newly-constructed home by a first-time home buyer. An amendment extends this deadline to March 31, 1998.
PART III LIQUOR LICENCE ACT
Maximum fines under the Liquor Licence Act are doubled for selling or supplying liquor to a person who is less than 19 years old and for permitting such a person to have or consume liquor on licensed premises. The current maximum fine under the Act is$100,000 for an individual and $250,000 for a corporation.
PART IV TOBACCO CONTROL ACT, 1994
Maximum fines under the Tobacco Control Act, 1994 are doubled for selling or supplying tobacco to a person who is less than 19 years old. The current maximum fines for those offences range from $2,000 (payable by an individual for a first offence) to $75,000 (payable by a corporation for a third or subsequent offence).
PART V LOAN AND TRUST CORPORATIONS ACT
The Loan and Trust Corporations Act now requires that loan and trust corporations cease carrying on business in Ontario after July 1, 1996. The amendment extends that deadline to July 1, 1998 and permits a further extension (to July 1, 1999) by regulation.
PART VI RETAIL SALES TAX ACT
Amendments to the Retail Sales Tax Act concerning computer programs are intended to clarify the way in which they are treated for tax purposes. Custom software and other types of computer programs are treated differently under the Act. Tax is payable upon the transfer of a computer program, including a transfer by electronic means. No tax is payable on labour to install, repair, adjust or maintain custom software.
Under a provision that comes into force on proclamation, customs officers and Canada Post employees may be authorized to collect taxes on taxable tangible personal property (other than clothing and footwear) being brought into Canada by returning Ontario residents. The provincial tax does not apply if there is no federal duty or excise tax payable (i.e., if the value of the goods does not exceed the federal tax-free allowance for returning residents).
The Minister of Finance is authorized to enter into an agreement with the federal government to authorize the collection of Ontario taxes at the border and at airports. The agreement may also provide for the collection of tax on tangible personal property purchased outside Canada and mailed to Ontario residents.
The definition of "sale" is amended to permit the Minister to prescribe when telecommunications services are considered to be 'sold' for tax purposes.
The tax exemption is extended to machinery, equipment and processing materials that are used in manufacturing and in research or development. A tax exemption is also provided for equipment used for research and investigation that is purchasedby non-profit medical research institutions.
The current Act provides for a tax rebate to farmers for tangible personal property purchased on or before March 31, 1997 that is being incorporated into a farm structure. An amendment extends the deadline to March 31, 1998.
The current Act provides that a document that understates the price of tangible personal property must be signed by (or under the authority of) the purchaser of the property before the purchaser can be penalized under the Act. That restriction is repealed.
PART VII SECURITIES ACT
The Ontario Securities Commission, established under the Securities Act, becomes a corporation without share capital composed of members appointed by the Lieutenant Governor in Council. A number of amendments relate to the new corporate status of the Commission. The Act provides that the Commission is a Crown agency.
The Commission is given the right to retain for its own use the fees it charges under the Securities Act and other Acts. The Minister of Finance can require the Commission to pay surplus funds that it accumulates into the Consolidated Revenue Fund, if doing so will not impair the capacity of the Commission to meet its financial and contractual commitments.
Commission by-laws must be submitted to the Minister for approval before they can become effective. The Minister may approve or reject a by-law or refer it back to the Commission for further consideration. The Commission and the Minister are required to enter into a memorandum of understanding every five years. The memorandum of understanding and by-laws that come into effect must be published in the Commission's bulletin.
The Commission is authorized to borrow money when necessary. The Public Service Act does not apply to staff employed by the Commission.
PART VIII TOBACCO TAX ACT
The Tobacco Tax Act now provides that the provincial tax payable on cigarettes and cut tobacco will increase or decrease to match any change in the federal tax on cigarettes. Under the current Act, the changes are to be rounded to the nearest tenth of a cent.
The amendment reflects a federal tax increase that came into force on November 28, 1996, and continues to provide thatprovincial taxes will change as the federal taxes are changed. The changes are no longer to be rounded to the nearest tenth of a cent.
PART IX TREASURY BOARD ACT, 1991
References in the Treasury Board Act, 1991 to the Ministry of Treasury and Economics and to the Treasurer of Ontario are replaced by Ministry of Finance and Minister of Finance. Amendments are also made to reflect the responsibility of the secretariat of the Management Board of Cabinet to provide administrative support to the Treasury Board, and to enable Treasury Board to delegate any of its powers, duties and functions to members of the Executive Council and to persons employed in the Ontario public service.
PART X SMALL BUSINESS DEVELOPMENT CORPORATIONS ACT
Until July 1, 1993, the Small Business Development Corporations Act provided investment incentives respecting corporations registered as small business development corporations. The Act now provides that, in specified circumstances, a corporation must repay the investment incentives.
On May 6, 1997, all existing registrations are revoked. Corporations in substantial compliance with the Act whose registration is revoked by the Bill will not be required to repay the investment incentives.
The Small Business Development Corporations Act is to be repealed on a day to be named by proclamation of the Lieutenant Governor.
PART XI ONTARIO LOAN ACT, 1997
The Bill enacts the Ontario Loan Act, 1997 (set out in Schedule A). That Act authorizes the borrowing of up to $7.5 billion, in total, for the Consolidated Revenue Fund. It is expected that the public capital markets, the international loan market and the Canada Pension Plan will be the principal sources of funds. The borrowing authority expires at the end of December 1998.
Bill 1291997
An Act to stimulate job growth, to reduce taxes
and to implement other measures contained in
the 1997 Budget
Contents
|
Part I |
Income Tax Act |
|
Part II |
Land Transfer Tax Act |
|
Part III |
Liquor Licence Act |
|
Part IV |
Tobacco Control Act, 1994 |
|
Part V |
Loan and Trust Corporations Act |
|
Part VI |
Retail Sales Tax Act |
|
Part VII |
Securities Act |
|
Part VIII |
Tobacco Tax Act |
|
Part IX |
Treasury Board Act, 1991 |
|
Part X |
Small Business Development Corporations Act |
|
Part XI |
Ontario Loan Act, 1997 |
|
Part XII |
Commencement and Short Title |
|
Schedule A |
Ontario Loan Act, 1997 |
Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:
PART I
INCOME TAX ACT
1. Paragraph 5 of subsection 3 (1) of the Income Tax Act, as enacted by the Statutes of Ontario, 1996, chapter 18, section 1, is repealed and the following substituted:
5. For 1997, the additional income tax shall equal the aggregate of,
i. 20 per cent of the amount, if any, by which the gross tax amount of the individual for the taxation year exceeds $4,555, and
ii. 26 per cent of the amount, if any, by which the gross tax amount of the individual for the taxation year exceeds $6,180.
6. For 1998 and subsequent taxation years, the additional income tax for each taxation year shall equal the aggregate of,
i. 20 per cent of the amount, if any, by which the gross tax amount of the individual for the taxation year exceeds $4,270, and
ii. 30 per cent of the amount, if any, by which the gross tax amount of the individual for the taxation year exceeds $5,635.
2. Subsection 4 (5) of the Act, as amended by the Statutes of Ontario, 1992, chapter 25, section 2, 1993, chapter 9, section 4 and 1996, chapter 18, section 2, is further amended by striking out "and" at the end of clause (r) and by repealing clause (s) and substituting the following:
(s) 48 per cent in respect of the 1997 taxation year;
(t) 45 per cent in respect of the 1998 and subsequent taxation years.
3. Clause 8 (10) (c) of the Act, as re-enacted by the Statutes of Ontario, 1996, chapter 24, section 13, is amended by striking out "Unemployment Insurance Act (Canada)" in the third and fourth lines and substituting "Employment Insurance Act (Canada)".
4. (1) Subsection 10 (1) of the Act, as re-enacted by the Statutes of Ontario, 1992, chapter 25, section 5 and amended by 1993, chapter 29, section 8, is further amended by striking out the reference to subsection "153 (2)" of the Federal Act where that reference occurs.
(2) Subsection 10 (1) of the Act, as amended by subsection (1), applies in respect of the 1995 and subsequent taxation years.
(3) Subsection 10 (1) of the Act, as re-enacted by the Statutes of Ontario, 1992, chapter 25, section 5 and amended by 1993, chapter 29, section 8 and subsection (1), is repealed and the following substituted:
Assessments and withholdings
10. (1) The following provisions of the Federal Act apply for the purposes of this Act and, in their application, any reference in them to section 150 or subsection 150 (1) of the Federal Act shall be read to include a reference to subsection 9 (1) of this Act:
1. Section 151.
2. Subsections 152_(1), (2), (3), (3.1), (4), (4.1), (4.2), (4.3), (4.4), (5), (6), (7) and (8).
3. Subsections 153_(1), (1.1), (1.2) and (3).
4. Subsections 227_(5), (5.1), (8.3) and (8.4).
5. Section 28 of the Act is amended by adding the following subsection:
Delegation to federal minister
(4) Despite any other provision of this Act, if a collection agreement is in force, the Provincial Minister may authorize the Minister in writing to exercise the Provincial Minister's power and discretion to grant a remission under subsection (1) or to accept a claim for a deduction under subsection (2) when the Minister considers it to be in the public interest to do so in order to,
(a) correct an erroneous assessment of tax;
(b) remedy incorrect tax advice from an employee of the Department of National Revenue; or
(c) relieve undue hardship.
6. (1) Subsection 37 (1) of the Act, as re-enacted by the Statutes of Ontario 1996, chapter 24, section 22, is amended by inserting a reference to subsections 227 (5) and (5.1) of the Federal Act after the reference to subsection 227 (4) of the Federal Act in the first line.
(2) Clause 37 (2) (b) of the Act, as amended by the Statutes of Ontario, 1993, chapter 29, section 15, is further amended by inserting a reference to subsections 227 (5) and (5.1) of the Federal Act before the reference to subsection 227 (8) of the Federal Act where that reference occurs.
Commencement
7. (1) This section and section 5 come into force on the day this Act receives Royal Assent.
(2) Subsections 4 (1) and (2) shall be deemed to have come into force on January 1, 1995.
(3) Subsection 4 (3) and section 6 shall be deemed to have come into force on June 20, 1996.
(4) Section 3 shall be deemed to have come into force on June30, 1996.
(5) Sections 1 and 2 shall be deemed to have come into force on January 1, 1997.
PART II
LAND TRANSFER TAX ACT
8. (1) The definitions of "associate", "non-resident corporation", "non-resident person" and "recreational land" in subsection 1 (1) of the Land Transfer Tax Act are repealed.
(2) The definition of "unrestricted land" in subsection 1 (1) of the Act, as amended by the Statutes of Ontario, 1994, chapter 18, section 4, is repealed.
(3) Subsections 1 (2), (3) and (4) of the Act are repealed.
(4) Subsection 1 (5) of the Act, as amended by the Statutes of Ontario, 1996, chapter 29, section 16, is repealed.
(5) Subsection 1 (7) of the Act is repealed.
9. (1) Subsection 2 (1) of the Act is repealed and the following substituted:
Tax imposed
(1) Every person who tenders for registration in Ontario a conveyance by which any land is conveyed to or in trust for a transferee shall pay before the conveyance is registered,
(a) a tax computed at the rate of,
(i) one-half of 1 per cent of the value of the consideration for the conveyance up to and including $55,000,
(ii) 1 per cent of the value of the consideration which exceeds $55,000 up to and including $250,000, and
(iii) 1.5 per cent of the value of the consideration which exceeds $250,000; and
(b) if the value of the consideration for the conveyance exceeds $400,000 and the conveyance is a conveyance of land that contains at least one and not more than two single family residences, an additional tax of one-half of 1 per cent of the amount by which the value of the consideration exceeds $400,000.
(2) Clause 2 (2) (a) of the Act is repealed.
(3) Subsection 2 (3) of the Act is repealed.
(4) Subsection 2 (4) of the Act, as amended by the Statutes of Ontario, 1996, chapter 29, section 17, is repealed.
(5) Subsection 2 (4.1) of the Act, as enacted by the Statutes of Ontario, 1996, chapter 29, section 17, is repealed.
(6) Subsection 2 (5), as amended by the Statutes of Ontario, 1994, chapter 18, section 4, is repealed.
(7) Subsections 2 (6) and (10) of the Act are repealed.
10. (1) Subsection 2.1 (1) of the Act, as enacted by the Statutes of Ontario, 1996, chapter 18, section 8, is repealed and the following substituted:
Tax imposed
(1) Every person who submits for registration as an electronic document under Part III of the Land Registration Reform Act a conveyance by which any land is conveyed to or in trust for any transferee shall pay when the electronic document is submitted for registration,
(a) a tax computed at the rate of,
(i) one-half of 1 per cent of the value of the consideration for the conveyance up to and including $55,000,
(ii) 1 per cent of the value of the consideration which exceeds $55,000 up to and including $250,000, and
(iii) 1.5 per cent of the value of the consideration which exceeds $250,000; and
(b) if the value of the consideration for the conveyance exceeds $400,000 and the conveyance is a conveyance of land that contains at least one and not more than two single family residences, an additional tax of one-half of 1 per cent of the amount by which the value of the consideration exceeds $400,000.
(2) Clause 2.1 (2) (a) of the Act, as enacted by the Statutes of Ontario, 1996, chapter 18, section 8, is repealed.
(3) Subsections 2.1 (3) and (5) of the Act, as enacted by the Statutes of Ontario, 1996, chapter 18, section 8, are repealed.
11. Clause 3 (1) (c) of the Act is repealed.
12. (1) Clause 5 (1) (d) of the Act is repealed.
(2) Subsection 5 (6) of the Act is repealed.
(3) Subsection 5 (11) of the Act, as re-enacted by the Statutes of Ontario, 1994, chapter 18, section 4, is amended by striking out "subsection 2 (1), (2) or (3)" in the second and third lines and substituting "subsection 2 (1) or (2)".
(4) Subsection 5 (12) of the Act, as amended by the Statutes of Ontario, 1994, chapter 18, section 4, is further amended by striking out "subsection (6), (7) or (8)" in the second and third lines and substituting "subsection (7) or (8)".
(5) Subsection 5 (13) of the Act, as amended by the Statutes of Ontario, 1994, chapter 18, section 4, is further amended by striking out "subsection (6), (7) or (8)" in the fourth line and substituting "subsection (7) or (8)".
(6) Subsections 5 (14), (15) and (16) of the Act are repealed.
13. Section 6 of the Act is amended by striking out "subsection 5 (6), (7) or (8)" in the fourth and fifth lines and substituting "subsection 5 (7) or (8)".
14. Subsection 7 (1) of the Act is amended by striking out "or falsely states that a person who is a non-resident person is not a non-resident person" in the fifth, sixth and seventh lines.
15. (1) Subsection 8 (3) of the Act, as amended by the Statutes of Ontario, 1996, chapter 18, section 11, is repealed.
(2) Subsection 8 (5) of the Act, as re-enacted by the Statutes of Ontario, 1996, chapter 18, section 11, is repealed.
16. Clause 9 (1) (a) of the Act is repealed.
17. (1) Subsection 9.2 (2) of the Act, as enacted by the Statutes of Ontario, 1996, chapter 18, section 13, is repealed and the following substituted:
Refund re newly-constructed home
(2) The Minister may refund, in the manner he or she prescribes, tax payable by a purchaser under this Act up to a maximum amount of $1,725 for a newly-constructed home, without interest thereon, in respect of agreements of purchase and sale entered into on or before March 31, 1998 to acquire the newly-constructed home to be used by the purchaser as his or her principal residence,
(a) if the conveyance or the disposition on which tax ispayable under this Act occurs on or after May 8, 1996; and
(b) if the newly-constructed home is occupied by the purchaser as his or her principal residence no later than December 31, 1998.
(2) Subsection 9.2 (5) of the Act, as enacted by the Statutes of Ontario, 1996, chapter 18, section 13, is repealed and the following substituted:
Limitation
(5) An application for a refund under this section shall be made no later than December 31, 1999.
18. Section 18 of the Act, as amended by the Statutes of Ontario, 1996, chapter 29, section 22, is repealed and the following substituted:
Transition re rebates and deferred tax
18. (1) References in this section to "the predecessor to this section" are references to this section as it read before its re-enactment, effective on May 7, 1997, by the Job Growth and Tax Reduction Act, 1997.
Cancellation of deferred tax
(2) If the payment of tax was deferred under the predecessor to this section and if the time for fulfilling the undertaking in respect of which the deferral was granted or extended has not expired on May 6, 1997, the tax is cancelled and is no longer owing.
Rebate
(3) If a person is entitled on May 7, 1997 to apply for a rebate under subsection (3) of the predecessor to this section, the rebate shall be made despite that subsection if the Minister receives an application for the rebate before January 1, 1998. However, no interest shall be paid for any period of time after the last day on which the application could have been made under that subsection.
Cancellation of tax owing
(4) If a person owes tax and interest on May 7, 1997 because of the failure to fulfil an undertaking in respect of which a deferral was granted or extended under the predecessor to this section, the tax and interest owing on that date are cancelled and no longer owing if the Minister is satisfied that,
(a) the undertaking was substantially fulfilled after the expiry of the period for fulfilling it but on or before May 6, 1997;
(b) the failure to fulfil the undertaking was due to circumstances beyond the control of the person who gave the undertaking; or
(c) on May 6, 1997, the person,
(i) had carried on in Ontario for the 12 months immediately preceding May 7, 1997 an active business in which at least five people were employed full-time throughout the 12-month period, and
(ii) owns assets (other than the land the conveyance of which gave rise to the tax owing) in Ontario that are at least equal in value to the value of the consideration of the land for the conveyance of which the tax was owing.
Compromise or further deferral
(5) If subsections (2), (3) and (4) do not apply and if a person owes tax and interest on May 7, 1997 because of the failure to fulfil an undertaking in respect of which a deferral was granted or extended under the predecessor to this section and no notice of assessment for payment of the tax is issued before May 6, 1997,
(a) the Minister may cancel the tax and interest owing on May 7, 1997 upon payment to the Minister before January 1, 1998 of an amount equal to one-half of the tax and interest owing on the date of payment; or
(b) the Minister may further defer the tax and interest owing on May 7, 1997 for a period of not more than seven years beginning on May 7, 1997 and, in that circumstance, the predecessor to this section continues to apply as if subsection (6) of the predecessor to this section referred to seven years instead of one year.
Return of security
(6) The Minister shall return to the person who furnished it any security held by the Minister for the payment of tax that is cancelled under this section. The Minister shall do so as soon as practicable after the Minister acknowledges the cancellation of the tax.
19. Section 19 of the Act is repealed.
20. Section 21 of the Act is amended by striking out "subsection 18 (11)" in the second and third lines.
21. Clause 22 (2) (g) of the Act, as amended by the Statutesof Ontario, 1996, chapter 18, section 14, is repealed.
Transition
22. Despite sections 8 to 16, 19 and 20 of this Act, sections 1, 2, 2.1, 3, 5, 6 and 7, subsections 8 (3) and (5) and sections 9, 19 and 21 of the Land Transfer Tax Act as they read immediately before May 7, 1997 continue in force and apply in respect of conveyances tendered or submitted for registration before May 7, 1997 and transfers and dispositions that occur before May 7, 1997.
Commencement
23. (1) This section comes into force on the day this Act receives Royal Assent.
(2) Section 17 shall be deemed to have come into force on April 1, 1997.
(3) Sections 8 to 16 and 18 to 22 shall be deemed to have come into force on May 7, 1997.
PART III
LIQUOR LICENCE ACT
24. Subsections 61 (3) and (4) of the Liquor Licence Act, as amended by the Statutes of Ontario, 1994, chapter 18, section 5 are repealed and the following substituted:
Penalties
(3) Upon conviction for an offence under this Act, other than a contravention of subsection 30 (1), (2), (3) or (4),
(a) a corporation is liable to a fine of not more than $250,000; and
(b) an individual is liable to a fine of not more than $100,000 or to imprisonment for a term of not more than one year or both.
Same, sale, etc., to a minor
(3.0.1) Upon conviction for contravening subsection 30 (1), (2), (3) or (4),
(a) a corporation is liable to a fine of not more than $500,000; and
(b) an individual is liable to a fine of not more than $200,000 or to imprisonment for a term of not more than one year or both.
Commencement
25. This Part comes into force on the day this Act receives Royal Assent.
PART IV
TOBACCO CONTROL ACT, 1994
26. (1) The Table to section 15 of the Tobacco Control Act, 1994 is amended by striking out "3 (1), 3 (2)" in Column 1 in the first line of the first row of the Table.
(2) The Table to section 15 of the Act is further amended by inserting the following row immediately after the column headings and before the first row:
|
1 |
2 |
3 |
4 |
|
PROVISION CONTRAVENED DISPOSITION À LAQUELLE IL A ÉTÉ CONTREVENU |
NUMBER OF EARLIER CONVICTIONS DÉCLARATIONS DE CULPABILITÉ PRÉALABLES |
MAXIMUM FINE- INDIVIDUAL AMENDE MAXIMALE-PARTICULIER |
MAXIMUM FINE-CORPORATION AMENDE MAXIMALE- PERSONNE MORALE |
|
$ |
$ |
||
|
3(1), 3(2) |
0 |
4,000 |
10,000 |
|
1 |
10,000 |
20,000 |
|
|
2 |
20,000 |
50,000 |
|
|
3 or more 3 ou plus |
100,000 |
150,000 |
Commencement
27. This Part comes into force on the day this Act receives Royal Assent.
PART V
LOAN AND TRUST CORPORATIONS ACT
28. Section 227 of the Loan and Trust Corporations Act is repealed and the following substituted:
Duration of authority to carry on business
227. (1) No corporation shall carry on the business of a loan corporation or of a trust corporation after July 1, 1998.
Extension of time
(2) The Lieutenant Governor in Council may make regulations changing the date set out in subsection (1) to a date not later than July 1, 1999.
Commencement
29. This Part comes into force on the day this Act receives Royal Assent.
PART VI
RETAIL SALES TAX ACT
30. (1) Subsection 1 (1) of the Retail Sales Tax Act, as amended by the Statutes of Ontario, 1993, chapter 12, section 1, 1994, chapter 13, section 1, 1994, chapter 17, section 135 and 1996, chapter 29, section 23, is further amended by adding the following definition:
"computer program" means a program, thing, data, information, knowledge or an instruction,
(a) that is used to instruct or inform a computer, machine or device, and
(b) that is retained or transferred in any manner including by electronic means,
and includes the types of programs described in subsection (3), documents designed to facilitate the use of all or part of a program and the right to use a program. ("programme informatique")
(2) The definition of "sale" in subsection 1 (1) of the Act, as amended by the Statutes of Ontario, 1994, chapter 13, section 1 and 1996, chapter 29, section 23, is further amended by adding the following clauses:
(a.3) the transfer or delivery in any manner of a computer program including the assumption of, or adherence to, a licence to use the program;
. . . . .
(k) the provision of such telecommunication services as the Minister may prescribe.
(3) The definition of "tangible personal property" in subsection 1 (1) of the Act is repealed and the following substituted:
"tangible personal property" means personal property that can be seen, weighed, measured, felt or touched or that is in any wayperceptible to the senses and includes computer programs, natural gas and manufactured gas. ("bien meuble corporel")
(4) Clause (a) of the definition of "vendor" in subsection 1 (1) of the Act is repealed and the following substituted:
(a) sells or licenses tangible personal property.
(5) Section 1 of the Act, as amended by the Statutes of Ontario, 1993, chapter 12, section 1, 1994, chapter 13, section 1, 1994, chapter 17, section 135 and 1996, chapter 29, section 23, is further amended by adding the following subsection:
Types of computer programs
(3) The following types of programs are computer programs for the purposes of this Act:
1. A program to solve a problem using a computer, machine or device, including the sequence of automatic instructions for data processing equipment necessary to solve the problem.
2. Instructions to enable or cause a computer, machine or device to control a function or perform it or to produce a desired result and to do so either directly or using other equipment.
3. System programs, application programs, assemblers, compilers, routines, generators and utility programs.
4. Pre-written programs and any modifications to them.
31. The Act is amended by adding the following sections:
Definitions re returning resident
2.2 (1) In sections 2.3 to 2.6,
"collection agent" means,
(a) an officer as defined in section 2 of the Customs Act (Canada) who is employed at a customs office in Ontario,
(b) subject to subsection (2), the Canada Post Corporation, or
(c) subject to subsection (2), a collection agent for the Canada Post Corporation; ("agent de perception")
"returning resident" means a person who,
(a) resides, ordinarily resides or carries on business inOntario, and
(b) brings specified tangible personal property into Ontario from outside Canada, causes it to be so brought or receives delivery of it in Ontario from outside Canada,
(i) for his, her or its own consumption or use,
(ii) for consumption or use by another person at his, her or its own expense, or
(iii) on behalf of or as agent for a principal for consumption or use by the principal or by another person at the principal's expense,
but does not include an Indian who is ordinarily resident on a reserve as defined by the Indian Act (Canada); ("résident de retour")
"specified tangible personal property" means tangible personal property other than books, clothes, footwear and vehicles, all as defined by the Minister. ("bien meuble corporel précisé")
Restriction
(2) The Canada Post Corporation and its collection agents are collection agents under this Act only when an agreement is in force between the Minister of National Revenue and the Corporation providing for the collection of taxes by the Corporation.
Tax payable by returning resident
2.3 (1) This section applies when a returning resident brings specified tangible personal property into Ontario from outside Canada, causes it to be so brought or receives delivery of it in Ontario from outside Canada in the circumstances described in the definition of returning resident.
Restriction
(2) This section applies only when an agreement described in section 2.5 is in force between the Minister and the Government of Canada.
Information and taxes
(3) Upon bringing the specified tangible personal property or causing it to be brought into Ontario or upon receiving delivery of it, the returning resident shall,
(a) make such report to a collection agent as he, she or it may require with respect to the property;
(b) give the collection agent all the information he, she or it may require in respect of the property; and
(c) remit the tax payable on the property to the collection agent as agent for the Minister.
Amount of tax
(4) The tax payable on the specified tangible personal property by the returning resident is the amount specified in subsection 2 (1) or, in the case of liquor, beer or wine, the amount specified in clause 2 (2) (b).
Exception
(5) No tax is payable on specified tangible personal property in respect of which no tax is payable under Division III of Part IX of the Excise Tax Act (Canada), as that Division is amended from time to time.
Instant rebate
(6) If the specified tangible personal property would have been exempt from tax if it had been purchased by the returning resident in Ontario, the collection agent shall credit the returning resident with the amount of tax previously determined by the collection agent to be owing by the returning resident.
Application for refund
(7) A returning resident may apply under subsection 2 (11) for the refund of taxes paid to a collection agent if the resident was entitled to receive a credit under subsection (6) for the amount of the taxes but no such credit was given.
Failure to report or pay tax
2.4 (1) If a returning resident fails or refuses to comply with subsection 2.3 (3), the collection agent may detain the specified tangible personal property until the earlier of,
(a) the date on which the tax on the specified tangible personal property and the costs, if any, relating to its detention are paid; or
(b) the expiry of 60 days after the detention begins.
Return of property
(2) If the tax is paid before the expiry of the 60-day period, the specified tangible personal property shall be returned to the returning resident.
Forfeiture of property
(3) If the tax is not paid before the expiry of the 60-day period, the specified tangible personal property is forfeit to Her Majesty in right of Ontario and may be disposed of asdirected by the Minister.
Agreement with federal government
2.5 (1) The Minister (on behalf of Her Majesty in right of Ontario) may enter into an agreement with the Government of Canada respecting the administration and enforcement of this Act in respect of specified tangible personal property,
(a) that is brought or caused to be brought into Ontario from outside Canada by a returning resident; or
(b) that is delivered in Ontario from outside Canada to a returning resident.
Compensation
(2) The agreement may authorize payment to the Government of Canada in respect of services under the agreement.
Payments
(3) Payments in respect of the ongoing costs of services under the agreement shall be paid out of the amounts collected on behalf of the Minister.
Authorization
(4) The Government of Canada may, as agent of Her Majesty in right of Ontario, act in accordance with the agreement,
(a) to collect tax owing in respect of specified tangible personal property that is released from customs without payment of all or part of the tax; and
(b) to refund an amount charged or collected by a collection agent that is credited under subsection 2.3 (6) or that is in excess of the amount of tax payable in respect of the specified tangible personal property.
Immunity of collection agent
2.6 No action or proceeding shall be brought against a collection agent in respect of an act done or omitted to be done in good faith by the collection agent,
(a) in the performance or intended performance of a duty under this Act or under an agreement described in section 2.5; or
(b) in the exercise or intended exercise of a power under this Act or under an agreement described in section 2.5.
32. (1) Paragraph 2 of subsection 7 (1) of the Act, as amended by the Statutes of Ontario, 1994, chapter 13, section 9,is further amended by adding the following subparagraph:
viii. provided to install, repair, adjust or maintain a computer program that may be purchased exempt from tax under paragraph 62.
(2) Paragraph 40 of subsection 7 (1) of the Act is repealed and the following substituted:
40. Such machinery, equipment or processing materials as may be prescribed by the Minister that are purchased to be used by a manufacturer or producer,
i. directly in the manufacture or production of tangible personal property,
ii. directly in and exclusively for research into or the development of goods to be manufactured or produced by any person,
iii. directly in and exclusively for research into or the development of manufacturing or production processes for use by any person, or
iv. directly in and exclusively for more than one of the purposes described in subparagraphs i, ii and iii,
but not machinery, equipment or processing materials that are used by persons prescribed by the Minister or that are used in a manner, process, industry or enterprise prescribed by the Minister.
(3) Paragraph 41 of subsection 7 (1) of the Act is repealed and the following substituted:
41. Tangible personal property purchased for the purpose of being processed, fabricated or manufactured into, attached to, or incorporated into tangible personal property for the purpose of sale. However, this exemption does not apply with respect to a computer program used to produce another computer program that may be purchased exempt from tax under paragraph 62.
(4) Subsection 7 (1) of the Act, as amended by the Statutes of Ontario, 1992, chapter 13, section 4, 1994, chapter 13, section 9, 1996, chapter 18, section 17 and 1996, chapter 29, section 26, is further amended by adding the following paragraphs:
62. Computer programs designed and developed to meet the specific requirements of the initial purchaser, but only in such circumstances as the Minister mayprescribe.
63. Equipment (and repair parts for the equipment) to be used exclusively for research or investigation, if the equipment is purchased by a non-profit institution that conducts medical research, as prescribed by the Minister, as its only function.
33. Subsection 20 (6) of the Act, as amended by the Statutes of Ontario, 1994, chapter 13, section 15, is further amended by striking out "signed by the purchaser or under the purchaser's authority" in the eighth and ninth lines.
34. Clause 48 (3) (m) of the Act, as enacted by the Statutes of Ontario, 1996, chapter 18, section 18, is amended by striking out "March 31, 1997" in the sixth line and substituting "March 31, 1998".
Commencement
35. (1) This section and section 33 come into force on the day this Act receives Royal Assent.
(2) Section 34 shall be deemed to have come into force on March 31, 1997.
(3) Sections 30 and 32 shall be deemed to have come into force on May 7, 1997.
(4) Section 31 comes into force on a day to be named by proclamation of the Lieutenant Governor.
PART VII
SECURITIES ACT
36. Section 2 of the Securities Act, as amended by the Statutes of Ontario, 1993, chapter 27, Schedule, is repealed.
37. Section 3 of the Act, as amended by the Statutes of Ontario, 1994, chapter 11, section 351, is repealed and the following substituted:
Commission continued
3. (1) The Ontario Securities Commission is continued as a corporation without share capital under the name Ontario Securities Commission in English and Commission des valeurs mobilières de l'Ontario in French.
Composition
(2) The Commission is composed of at least nine and not more than 14 members.
Deficiency in number
(3) If there are fewer than nine but at least two members in office, the Commission shall be deemed to be properly constituted for a period not exceeding 90 days after the deficiency in the number of members first occurs.
Appointment
(4) The members shall be appointed by the Lieutenant Governor in Council for such term of office not exceeding five years as the Lieutenant Governor in Council determines. A member may be reappointed.
Chair and Vice-Chairs
(5) The Lieutenant Governor in Council shall, by order, designate a member of the Commission as Chair and may designate one or two members as Vice-Chairs.
Same
(6) The Chair and each Vice-Chair holds office for the term specified by the Lieutenant Governor in Council which shall not exceed his or her term as a member of the Commission.
Duties of Chair
(7) The Chair is the chief executive officer of the Commission and shall devote his or her full time to the work of the Commission.
Duties of members
(8) The members (other than the Chair) shall devote such time as may be necessary for the due performance of their duties as members.
Protection from liability
(9) A member is not liable for an act, an omission, an obligation or a liability of the Commission or its employees. A member is not liable for any act that in good faith is done or omitted in the performance or intended performance of his or her duties as a member of the Commission under this or any other Act.
Acting Chair
(10) If the office of Chair is vacant or if the Chair is absent or is unable to act for any reason, a Vice-Chair shall act as Chair.
Quorum
(11) Two members of the Commission constitute a quorum.
Crown agency
(12) The Commission is an agent of Her Majesty in right of Ontario, and its powers may be exercised only as an agent of Her Majesty.
Board of directors
3.1 (1) The Commission shall have a board of directors composed of the members of the Commission.
Duties
(2) The board of directors shall oversee the management of the financial and other affairs of the Commission.
Presiding officer
(3) The Chair shall preside over board meetings and, in his or her absence, a Vice-Chair shall do so. In the absence of the Chair and Vice-Chairs, the members in attendance may appoint one of their number to preside at a meeting.
Meetings
(4) Subject to the by-laws of the Commission, the board of directors may meet at any place in Canada.
Powers of the Commission
3.2 (1) The Commission has the capacity and the rights, powers and privileges of a natural person.
Duties
(2) The Commission is responsible for the administration of this Act and shall perform the duties assigned to it under this Act and any other Act.
By-laws
(3) Subject to the approval of the Minister, the Commission may make by-laws,
(a) governing the administration, management and conduct of the affairs of the Commission;
(b) governing the appointment of an auditor;
(c) setting out the powers, functions and duties of the Chair, each Vice-Chair and the officers employed by the Commission;
(d) delegating to employees of the Commission the exercise or performance of any power or duty conferred or imposed on an officer of the Commission under this Act and fixing the terms or conditions of the delegation;
(e) governing the remuneration and benefits of the Chair, each Vice-Chair and the other members of the Commission;
(f) governing the time, place and method for holding meetings of the board of directors and the procedure atsuch meetings;
(g) governing the appointment, operation or dissolution of committees of the board of directors and delegating duties of the board to the committees; and
(h) governing the refund of fees paid to the Commission under this or any other Act and authorizing employees of the Commission to approve refunds subject to such conditions and in such circumstances as the Commission considers appropriate.
Notice to Minister
(4) The Commission shall deliver to the Minister a copy of every by-law passed by it.
Minister's review
(5) Within 60 days after delivery of the by-law, the Minister may approve, reject or return it to the Commission for further consideration.
Effect of approval
(6) A by-law that is approved by the Minister becomes effective on the date of the approval or on such later date as the by-law may provide.
Effect of rejection
(7) A by-law that is rejected by the Minister does not become effective.
Effect of return for further consideration
(8) A by-law that is returned to the Commission for further consideration does not become effective until the Commission returns it to the Minister and the Minister approves it.
Expiry of review period
(9) If within the 60-day period the Minister does not approve, reject or return the by-law for further consideration, the by-law becomes effective on the 75th day after it is delivered to the Minister or on such later date as the by-law may provide.
Publication
(10) The Commission shall publish the by-law in its Bulletin as soon as practicable after the by-law becomes effective.
Regulations Act not to apply
(11) The Regulations Act does not apply to by-laws made by the Commission.
Borrowing power
3.3 (1) The Commission shall not, without the approval of the Lieutenant Governor in Council, borrow money, pledge, mortgage or hypothecate any of its property, or create or give a security interest in any of its property.
Short term loans permitted
(2) Despite subsection (1), the Commission may borrow money for periods of not more than two years to meet the short term needs of the Commission, and shall do so only on such terms and conditions, whether with or without security, as the Minister may approve.
Purchases and loans by Province
(3) The Minister, on behalf of Ontario, may purchase securities of or make loans to the Commission in such amounts, at such times and on such terms and conditions as the Lieutenant Governor in Council considers expedient.
Same
(4) The Minister may pay from the Consolidated Revenue Fund the money necessary for a purchase or loan made under subsection (3).
Authority re income
3.4 (1) Despite the Financial Administration Act, the fees payable to the Commission under this or any other Act, the revenue from the exercise of a power conferred or the discharge of a duty imposed on the Commission under this or any other Act, and the investments held by the Commission do not form part of the Consolidated Revenue Fund and, subject to this section, shall be applied to carrying out the powers conferred and duties imposed on the Commission under this or any other Act.
Exception
(2) The Commission shall pay into the Consolidated Revenue Fund money received by it as a payment to settle enforcement proceedings commenced by the Commission but not money received by the Commission,
(a) to reimburse it for costs incurred or to be incurred by it; or
(b) that is designated under the terms of the settlement for allocation to or for the benefit of third parties.
Surplus
(3) When ordered to do so by the Minister, the Commission shall pay into the Consolidated Revenue Fund such of its surplus funds as are determined by the Minister.
Same
(4) In determining the amount of a payment to be made under subsection (3), the Minister shall allow such reserves for the future needs of the Commission as he or she considers appropriate, and shall ensure that the payment will not impair the Commission's ability to pay its liabilities, to meet its obligations as they become due or to fulfil its contractual commitments.
Powers re hearings
3.5 (1) The Commission may hold hearings in or outside Ontario.
Joint hearings
(2) The Commission may hold hearings in conjunction with other bodies empowered by statute to administer or regulate trading in securities or commodities, and may consult with those bodies during the course of, or in connection with, the hearing.
Powers of one commissioner
(3) Despite subsection 3 (11) and subject to subsection (4), any two or more members of the Commission may in writing authorize one member of the Commission to exercise any of the powers and perform any of the duties of the Commission, except the power to conduct contested hearings on the merits, and a decision of the member shall have the same force and effect as if made by the Commission.
Eligibility to sit on hearing
(4) No member who exercises a power or performs a duty of the Commission under Part VI in respect of a matter under investigation or examination shall sit on a hearing by the Commission that deals with the matter, except with the written consent of the parties to the proceeding.
Commission staff
3.6 (1) The Commission may employ such persons as it considers necessary to enable it effectively to perform its duties and exercise its powers under this or any other Act.
Officers
(2) The Commission shall appoint from among its employees an Executive Director and a Secretary as officers of the Commission, and may appoint from among its employees such other officers as it considers necessary.
Status of members
(3) The members of the Commission are not its employees, and the Chair and Vice-Chairs shall not hold any other office in the Commission or be employed by it in any other capacity.
Conflict of interest, indemnification
(4) Sections 132 (conflict of interest) and 136 (indemnification) of the Business Corporations Act apply with necessary modifications with respect to the Commission as if the Minister were its sole shareholder.
Public Service Act not to apply
(5) The Public Service Act does not apply to the members and employees of the Commission.
Public Service Pension Plan not to apply
(6) The Public Service Pension Plan established under the Public Service Pension Act does not apply to the members and employees of the Commission, except as authorized by order of the Lieutenant Governor in Council.
Agreement for services
(7) The Commission and a ministry of the Crown may enter into agreements for the provision by employees of the Crown of any service required by the Commission to carry out its duties and powers. The Commission shall pay the agreed amount for services provided to it.
Memorandum of understanding
3.7 (1) Every five years beginning with the Commission's 1998-99 fiscal year, the Commission and the Minister shall enter into a memorandum of understanding setting out,
(a) the respective roles and responsibilities of the Minister and the Chair;
(b) the accountability relationship between the Commission and the Minister;
(c) the responsibility of the Commission to provide to the Minister business plans, operational budgets and plans for proposed significant changes in the operations or activities of the Commission; and
(d) any other matter that the Minister may require.
Same
(2) The Commission shall comply with the memorandum of understanding in exercising its powers and performing its duties under this Act, but the failure to do so does not affect the validity of any action taken by the Commission or give rise to any rights or remedies by any person.
Publication of memorandum
(3) The Commission shall publish the memorandum of understanding in its Bulletin as soon as practicable after thememorandum is entered into.
Minister's request for information
3.8 (1) The Commission shall promptly give the Minister such information about its activities, operations and financial affairs as the Minister requests.
Examination
(2) The Minister may designate a person to examine any financial or accounting procedures, activities or practices of the Commission. The person designated shall do so and report the results of the examination to the Minister.
Duty to assist, etc.
(3) The members and employees of the Commission shall give the person designated by the Minister all the assistance and co-operation necessary to enable him or her to complete the examination.
Fiscal year
3.9 (1) The fiscal year of the Commission begins on April 1.
Financial statements
(2) The Commission shall prepare annual financial statements in accordance with generally accepted accounting principles. The financial statements must present the financial position, results of operations and changes in the financial position of the Commission for its most recent fiscal year.
Auditors
(3) The Commission shall appoint one or more auditors licensed under the Public Accountancy Act to audit the financial statements of the Commission for each fiscal year.
Provincial Auditor
(4) The Provincial Auditor may also audit the financial statements of the Commission.
Annual report
3.10 (1) Within six months after the end of each fiscal year, the Commission shall deliver to the Minister an annual report, including the Commission's audited financial statements, on the affairs of the Commission for that fiscal year.
Report to be laid before Assembly
(2) Within one month after receiving the Commission's annual report, the Minister shall lay the report before the Assembly by delivering the report to the Clerk.
Collection of personal information
3.11 The Commission may collect personal information withinthe meaning of section 38 of the Freedom of Information and Protection of Privacy Act for the purpose of carrying out its duties and exercising its powers under this or any other Act.
Non-application of certain Acts
3.12 The Corporations Act and the Corporations Information Act do not apply with respect to the Commission.
38. Section 6 of the Act, as re-enacted by the Statutes of Ontario, 1994, chapter 11, section 354, is amended by adding the following subsection:
Absence or incapacity of Executive Director
(7) If the Executive Director is absent or incapable of acting, the Commission may designate another individual to act as Executive Director.
39. Section 143.9 of the Act, as enacted by the Statutes of Ontario, 1994, chapter 33, section 8, is amended by adding the following subsection:
Same
(1.1) The statement referred to in subsection (1) shall also outline in general terms the Commission's anticipated expenditures for the next financial year by category for any category expected to exceed 10 per cent of the overall expenditures for the year.
40. Section 148 of the Act, as enacted by the Statutes of Ontario, 1994, chapter 11, section 381, is repealed.
Commencement
41. (1) This section comes into force on the day this Act receives Royal Assent.
(2) Sections 36 to 40 come into force on a day to be named by proclamation of the Lieutenant Governor.
PART VIII
TOBACCO TAX ACT
42. (1) Subsection 2 (1) of the Tobacco Tax Act, as re-enacted by the Statutes of Ontario, 1996, chapter 18, section 19, and subsection 2 (1.1) of the Act, as enacted by 1996, chapter 18, section 19, are repealed and the following substituted:
Tax on consumers
(1) Every consumer shall pay to Her Majesty in right of Ontario a tax at the rate of 24 per cent of the taxable price per cigarette on every cigarette and on every gram or part thereof of any tobacco, other than cigars and cigarettes, purchased by theconsumer. If after May 6, 1997,
(a) the duty levied under the Excise Act (Canada) is changed under that Act from $0.027475 on a cigarette; or
(b) the tax levied under the Excise Tax Act (Canada), other than under Part IX, on cigarettes marked or stamped in accordance with this Act is changed from $0.010276 on a cigarette,
the tax payable by the consumer shall be increased or decreased, as the case may be, by the full amount of the change and shall be effective on the same day as the change.
Tax for cigars
(1.1) Every consumer shall pay to Her Majesty in right of Ontario a tax on every cigar purchased by the consumer, at the rate of 45 per cent of the price at retail, but if the application of that rate of tax produces a fraction of a cent, the fraction shall be counted as one full cent.
(2) Subsection 2 (1.4) of the Act, as enacted by Statutes of Ontario, 1996, chapter 18, section 19, is repealed and the following substituted:
Transition
(1.4) Until the taxable price per cigarette is prescribed by the Minister, every consumer shall pay to Her Majesty in right of Ontario a tax at the rate of 2.05 cents on every cigarette and on every gram or part thereof of tobacco, other than cigars and cigarettes, purchased by the consumer, rather than at the rate of 24 per cent of the taxable price per cigarette.
Commencement
43. (1) This section comes into force on the day this Act receives Royal Assent.
(2) Section 42 shall be deemed to have come into force on May 7, 1997.
PART IX
TREASURY BOARD ACT, 1991
44. (1) Subsection 3 (1) of the Treasury Board Act, 1991 is amended by striking out "Treasurer of Ontario and Minister of Economics" in the second and third lines and substituting "Minister of Finance".
(2) Subsection 3 (2) of the Act is amended by striking out "Treasurer" in the fifth line and substituting "Minister ofFinance".
45. (1) Subsection 5 (2) of the Act is amended by striking out "Deputy Treasurer of Ontario and Deputy Minister of Economics" in the second and third lines and substituting "Secretary of the Management Board of Cabinet".
(2) Subsections 5 (3) and (4) of the Act are repealed and the following substituted:
Board staff
(3) The secretariat of the Management Board of Cabinet shall provide the staff required for the operation and administration of the Board.
Delegation
(4) The Board may delegate to any member of the Executive Council or to any person employed in the public service of Ontario any power, duty or function of the Board, subject to such limitations and requirements as the Board may specify.
Commencement
46. This Part comes into force on the day this Act receives Royal Assent.
PART X
SMALL BUSINESS DEVELOPMENT CORPORATIONS ACT
47. The Small Business Development Corporations Act is amended by adding the following section:
Revocation of all registrations
3.1 The registration of every corporation that, on May 6, 1997, is registered as a small business development corporation is revoked.
48. Section 24 of the Act is amended by adding the following subsection:
Relief from liability
(2) If the registration of a small business development corporation is revoked by section 3.1, amounts otherwise payable under subsection (1) as a result of the revocation are not payable if the corporation is in substantial compliance with this Act on May 5, 1997 and the Minister is of the opinion that the corporation is meeting the spirit and intent of this Act.
Repeals
49. The following are repealed:
1. The Small Business Development Corporations Act.
2. Part XV of the Budget Measures Act, 1994.
3. Part X of the Job Growth and Tax Reduction Act, 1997.
Commencement
50. (1) This section comes into force on the day this Act receives Royal Assent.
(2) Sections 47 and 48 shall be deemed to have come into force on May 6, 1997.
(3) Section 49 comes into force on a day to be named by proclamation of the Lieutenant Governor.
PART XI
ONTARIO LOAN ACT, 1997
51. The Ontario Loan Act, 1997, as set out in Schedule A, is hereby enacted.
Commencement
52. This Part comes into force on the day this Act receives Royal Assent.
PART XII
COMMENCEMENT AND SHORT TITLE
Commencement
53. (1) Subject to subsection (2), this Act comes into force on the day it receives Royal Assent.
(2) Parts I to XI of this Act provide for their own commencement.
Short title
54. The short title of this Act is the Job Growth and Tax Reduction Act, 1997.
SCHEDULE A
ONTARIO LOAN ACT, 1997
Borrowing authorized
1. (1) The Lieutenant Governor in Council may borrow in any manner provided by the Financial Administration Act such sums, not exceeding a total aggregate amount of $7.5 billion, as are considered necessary to discharge any indebtedness or obligation of Ontario, to make any payment authorized or required by any Act to be made out of the Consolidated Revenue Fund or to reimburse the Consolidated Revenue Fund for money expended for any of such purposes.
Other Acts
(2) The authority to borrow conferred by this Act is in addition to that conferred by any other Act.
Expiry
2. No order in council authorizing borrowing under this Act shall be made after December 31, 1998.
Commencement
3. This Act comes into force on the day the Job Growth and Tax Reduction Act, 1997 receives Royal Assent.
Short title
4. The short title of this Act is the Ontario Loan Act, 1997.