Tax Credits and Economic Stimulation Act, 1996
EXPLANATORY NOTE
PART I
AMENDMENTS TO THE EMPLOYER HEALTH TAX ACT
This Part implements proposed changes to the Employer Health Tax Act contained in the 1996 Budget,
(a) to terminate the one-year tax holiday on increases in payroll effective at the end of 1996;
(b) to include in total Ontario remuneration the amount of bonuses and other lump-sum payments made after May 7, 1996 to former employees;
(c) to include in total Ontario remuneration stock option benefits deemed to be received by former employees in 1997 and later years;
(d) to require trustees in bankruptcy to notify the Minister of Finance of their appointment within 10 days;
(e) to require bankrupt taxpayers to file pre-bankruptcy tax returns for the year within 40 days of becoming bankrupt.
PART II
AMENDMENTS TO THE LABOUR SPONSORED VENTURE
CAPITAL CORPORATIONS ACT, 1992
This Part implements proposed changes to the Labour Sponsored Venture Capital Corporations Act, 1992 contained in the 1996 Budget, relating to labour sponsored investment fund corporations (LSIFs),
(a) to reduce the tax credit on the purchase of Class A shares of a LSIF;
(b) to require LSIFs to reach minimum levels of investment in eligible investments within revised time limits;
(c) to limit the amount of capital LSIFs may invest in public corporations;
(d) to require LSIFs to have a minimum level of investment in small businesses; and
(e) to prohibit the issue of tax credit certificates if the LSIF has failed to meet its investment obligations.
PART III
AMENDMENTS TO THE INCOME TAX ACT
This Part implements the reduction to the Ontario income tax credit available in respect of investments in labour sponsored investment fund corporations, as proposed in the 1996 Budget, and extends the co-operative education tax credit to unincorporated employers. It also makes minor technical amendments to the Act necessary due to changes in federal legislation and the change in name of the Ministry of Revenue to the Ministry of Finance and clarifies administrative provisions of the Act.
PART IV
AMENDMENTS TO THE CORPORATIONS TAX ACT
The amendments to the Corporations Tax Act implement the 1996 Budget proposals to provide an Ontario film and television tax credit to qualifying production companies in respect of eligible Ontario-based film and television productions and a co-operative education tax credit in respect of eligible expenditures incurred in providing co-op work placements for students in post-secondary co-op education programs. As part of these amendments, certain rules in section 43.3 applicable to the refundable Ontario innovation tax credit are moved to a new section and apply as well to the new refundable tax credits. In addition, various interest and penalty provisions have been amended to take into consideration the new refundable tax credits.
PART V
AMENDMENTS TO THE LAND TRANSFER TAX ACT
The amendment to section 9 of the Land Transfer Tax Act corrects a technical anomaly so that the land transfer tax refund on the purchase of a first home by a planholder of an Ontario home ownership savings plan opened before 1994 is available whether or not a deed or transfer for the property is registered on title.
PART VI
AMENDMENTS TO THE FINANCIAL ADMINISTRATION ACT
The amendments to the Financial Administration Act make a number of changes to provisions dealing with cash management and investment of the Consolidated Revenue Fund and with respect to the issue and sale of securities by Ontario.
The amendment to subsection 2 (2) removes the requirement that all public money be deposited only in institutions authorized to do business in Ontario. This will permit the use of foreign banks for receiving the proceeds of, and making repayments of, loans in foreign currencies.
The addition of subsections 2 (4) and (5) allows the Province to simplify the payment of remuneration to agents who collect money on behalf of the Province and for others who both owe money to, and are owed money by, the Province.
The amendments to section 3 clarify that, in managing the Consolidated Revenue Fund, the Minister of Finance may invest in securities loan agreements and in repurchase and reverse repurchase agreements, and that investments authorized by section 3 are not deemed to be loans to the Province.
The amendment to section 8.1 permits the Crown to charge a prescribed fee to anyone who makes a payment to the Crown, otherwise than in cash, which is subsequently not completed for any reason. Section 8.1 of the Act now applies only in the case of dishonoured cheques.
The amendment to subsection 11 (1) and the new subsections 11 (1.1) and (1.2) deal with payments from the Consolidated Revenue Fund by cheque and by other methods of payment or transfer, such as payments made electronically. The amendments permit the Minister of Finance to authorize payment by cheque or other method from the Consolidated Revenue Fund by ministers and ministry officials other than those of the Ministry of Finance. The new subsection 11 (1.3) permits the Minister of Finance to make arrangements for payments from and to the Consolidated Revenue Fund by electronic funds transfers or by the use of credit cards, debit cards or similar arrangements.
The amendment to subsection 23 (1) removes the restriction that temporary loans authorized under that subsection can be arranged only with a bank listed in Schedule I or II to the Bank Act (Canada). The amendment will allow temporary loans to be made from any bank, corporation, government or authority. The amendment also clarifies that a temporary loan is one for a term of not more than 365 days. The new subsection 23 (3) clarifies that temporary loans may not be refinanced in accordance with the authority given in paragraph 1 of section 21.
The amendments to section 26 deal with the conversion to Canadian dollars of loans to Ontario in foreign currencies. The amendment to subsection 26 (2) provides that the conversion rate is to be determined on the first day before the loan is made and on which the Bank of Canada provides a noon spot Canadian dollar exchange rate for the currency being converted. The re-enactment of subsection 26 (4) provides conversion rules for the refinancingunder section 21 of the Act of loans denominated in a foreign currency.
The subsections added to section 26.1 of the Act permit the Minister of Finance to provide as a term of a security that the Province is authorized to issue that the security may be exchanged in the future for a security of Ontario with a different maturity date, interest rate or other terms if the principal amount of debt owing by Ontario is not increased as a result of the exchange. The Minister of Finance is authorized to issue the future securities in accordance with the terms of the exchange, and a provision is made that section 21 will not apply to the securities being replaced by the issue of the future securities.
Bill 701996
An Act to provide Co-operative Education and
Film Industry Tax Credits, to create Economic Growth,
to implement other measures contained in the 1996 Budget
and to amend certain Acts administered by
the Minister of Finance
CONTENTS
|
Part |
Sections |
|
|
I |
Amendments to the Employer Health Tax Act |
1-4 |
|
II |
Amendments to the Labour Sponsored Venture Capital Corporations Act, 1992 |
5-10 |
|
III |
Amendments to the Income Tax Act |
11-25 |
|
IV |
Amendments to the Corporations Tax Act |
26-31 |
|
V |
Amendments to the Land Transfer Tax Act |
32 |
|
VI |
Amendments to the Financial Administration Act |
33-39 |
|
VII |
General |
40, 41 |
Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:
PART I
AMENDMENTS TO THE EMPLOYER HEALTH TAX ACT
1. (1) Clause (a) of the definition of "eligible employer" in subsection 1 (1) of the Employer Health Tax Act, as enacted by the Statutes of Ontario, 1994, chapter 17, section 57, is repealed and the following substituted:
(a) a person in the public sector, as described in clauses 1 (a) to (i) and section 2 of the Schedule to the Social Contract Act, 1993, and not subject to tax under Part I of the Income Tax Act (Canada).
(2) The definition of "employee" in subsection 1 (1) of the Act, as amended by the Statutes of Ontario, 1994, chapter 8, section 1, is further amended by adding the following clause:
(c) an individual who was formerly an employee within the meaning of clause (a) or (b).
(3) Subsection 1 (1) of the Act, as amended by the Statutes of Ontario, 1994, chapter 8, section 1 and 1994, chapter 17, section 57, is further amended by adding the following definition:
"bankrupt", when used as a noun, means a person who makes an assignment under the Bankruptcy and Insolvency Act (Canada) or against whom a receiving order has been made under that Act and, when used as an adjective, means the legal status of that person. ("failli")
(4) Section 1 of the Act, as amended by the Statutes of Ontario, 1994, chapter 8, section 1 and 1994, chapter 17, section 57, is further amended by adding the following subsection:
Remuneration of former employees
(6) Remuneration received or deemed to be received after May 7, 1996 by an individual who is no longer employed by an employer shall be included in the total Ontario remuneration of the employer if the remuneration is in respect of the previous employment with the employer or is received or deemed to be received by virtue of the individual's having been employed by the employer.
2. (1) Clauses 2 (3) (a) and (b) of the Act are repealed and the following substituted:
(a) the payment is made to an employee of the person or to another person who at the time of the payment did not deal at arm's length, within the meaning of section 251 of the Income Tax Act (Canada), with an employee of the person; and
(b) it is reasonable for the Minister to consider that the payment is made by the person in consideration for services rendered to the employer by the employee or the other person who did not deal at arm's length with an employee of the person.
(2) Section 2 of the Act, as amended by the Statutes of Ontario, 1994, chapter 8, section 2, is further amended by adding the following subsection:
Stock option benefits, former employee
(3.1) If an employer has agreed to sell or issue to an employee shares of the capital stock of the employer, the amount of any benefit deemed to be received in a year by the employee under section 7 of the Income Tax Act (Canada) with respect to the shares after the employee has ceased to be employed by the employer shall be deemed to be remuneration paid to the employee by the employer in the same year.
3. Subsection 2.1 (17) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 17, section 58, is repealed and the following substituted:
Application
(17) This section and subsections 3 (4.1) and (4.2) apply only with respect to tax payable for 1994, 1995 and 1996.
4. (1) Section 5 of the Act, as amended by the Statutes of Ontario, 1994, chapter 8, section 5, is further amended by adding the following subsections:
Annual return, taxpayer who becomes bankrupt
(2.1) Despite subsection (1), every taxpayer who is liable to pay tax for a year under this Act and becomes a bankrupt shall deliver to the Minister within forty days from the day the taxpayer becomes a bankrupt,
(a) a return for the part of the year ending on the day before the taxpayer becomes a bankrupt setting out the amount of tax payable by the taxpayer with respect to that part of the year and any other information that may be required by the Minister for the purposes of this Act; and
(b) unless required to be delivered before the day the taxpayer becomes bankrupt, the return for the previous year.
. . . . .
Notice of appointment, trustee in bankruptcy
(6.1) Every trustee in bankruptcy appointed to administer, manage, wind-up, control or otherwise deal with the property, business, estate or income of a taxpayer shall notify the Minister in writing of the trustee's appointment within 10 days of the appointment.
(2) Subsection 5 (7) of the Act, as re-enacted by the Statutes of Ontario, 1994, chapter 8, section 5, is repealed and the following substituted:
Returns by trustee in bankruptcy, etc.
(7) Every trustee in bankruptcy, assignee, liquidator, curator, receiver, trustee or committee and every agent or other person administering, managing, winding-up, controlling or otherwise dealing with the property, business, estate or income of a taxpayer shall, if the taxpayer has not delivered a return as required under this section, deliver the return for the taxpayer on or before the prescribed date.
(3) Section 5 of the Act, as amended by the Statutes of Ontario, 1994, chapter 8, section 5, is further amended by adding the following subsection:
Exception
(12) Subsection (11) does not apply if the return is delivered after the taxpayer becomes a bankrupt and the return relates to tax payable by the taxpayer for a period of time before the taxpayer becomes bankrupt.
PART II
AMENDMENTS TO THE LABOUR SPONSORED VENTURE
CAPITAL CORPORATIONS ACT, 1992
5. (1) Subsections 17 (1) and (2) of the Labour Sponsored Venture Capital Corporations Act, 1992 are repealed and the following substituted:
Required investment levels
(1) A labour sponsored investment fund corporation shall invest in eligible investments,
(a) by the end of the calendar year in which an investment period ends, an amount equal to at least 50 per cent of the amount by which the equity capital received during the investment period on the issue of Class A shares during the investment period exceeds the total of all amounts paid as a return of capital of those shares before the end of the calendar year in which the investment period ends; and
(b) by the end of the year following the calendar year in which an investment period ends, an amount equal to at least 70 per cent of the amount by which the equity capital received during the investment period on the issue of the Class A shares during the investment period exceeds the total of all amounts paid as a return of capital of those shares before the end of the year following the calendar year in which the investment period ends.
Transitional
(1.1) If a labour sponsored investment fund corporation issues Class A shares before May 7, 1996, the corporation shall invest in eligible investments by the designated date an amount equal to at least 70 per cent of the amount by which the equity capital received on the issue of the Class A shares exceeds the
total of all amounts paid as a return of capital of those shares on or before the designated date.
Investment period
(1.2) For the purposes of subsection (1), the first investment period commences on May 7, 1996 and ends on March 1, 1997 and every subsequent investment period commences on the 61st day of a year and ends on the 60th day of the following year.
Designated date
(1.3) For the purposes of subsection (1.1), the designated date in respect of a Class A share issued before May 7, 1996 is the earlier of December 31, 1997 and the day that is two years
after the last day of the fiscal year of the corporation in which the Class A share was issued.
Requirement to maintain eligible investments
(2) A labour sponsored investment fund corporation shall keep invested in eligible investments the amounts required to be invested by subsections (1) and (1.1).
(2) Subsection 17 (4) of the Act is repealed and the following substituted:
Application
(4) This section applies to a corporation registered under Part X.3 of the Income Tax Act (Canada) only in respect of,
(a) equity capital received on the issue of Class A shares to shareholders of the corporation who are ordinarily resident in Ontario; and
(b) amounts paid as a return of capital of Class A shares issued to shareholders of the corporation who were ordinarily resident in Ontario at the time the shares were issued.
6. Section 18.1 of the Act, as enacted by the Statutes of Ontario, 1994, chapter 17, section 86, is repealed and the following substituted:
Limit on investments in reporting issuers
18.1 (1) A labour sponsored investment fund corporation shall not make an investment if, as a result of making the investment, more than 15 per cent of an amount required by clause 17 (1) (a) or (b) to be invested by the corporation in eligible investments within the time limit set out in that clause will be invested in eligible businesses that are reporting issuers under the Securities Act at the time of the investment.
Same
(2) A labour sponsored investment fund corporation shall not make an investment if, as a result of making the investment, more than 51 per cent of an amount that is required by subsection 17 (1.1) to be invested in eligible investments and that was notinvested in eligible investments before May 7, 1996 will be invested in eligible businesses that are reporting issuers under the Securities Act at the time of the investment.
Minimum investment level in small businesses
(3) A labour sponsored investment fund corporation shall invest in eligible businesses that are small businesses at the time of the investment at least the following percentage of the amounts required by subsection 17 (1) to be invested in eligible investments and of the amounts that are required by subsection 17 (1.1) to be invested in eligible investments and that were not invested in eligible investments before May 7, 1996:
1. 10 per cent, where no other percentage is prescribed.
2. The prescribed percentage, otherwise.
Same
(4) The investments required by subsection (3) to be made in small businesses shall be made within the time limits set out in subsections 17 (1) and (1.1).
Small business
(5) A business is a small business for the purposes of this section if,
(a) the business is an eligible business;
(b) the sum of the total assets, as determined in the prescribed manner, of the business and of each corporation and partnership related to the business does not exceed $5,000,000; and
(c) the sum of the total number of employees, determined in the prescribed manner, of the business and of each corporation and partnership related to the business does not exceed 50.
7. Subsection 25 (4) of the Act, as amended by the Statutes of Ontario, 1994, chapter 17, section 88, is repealed and the following substituted:
Amount of tax credit
(4) The amount of the tax credit referred to in subsection (3) that may be claimed for a taxation year shall be determined in accordance with the following rules:
1. The amount of the tax credit deductible in determining the amount of tax payable under the Income Tax Act for the 1991 taxation year is 20 per cent of the lesser of,
i. the total amount of equity capital received by the corporation from the eligible investor after November 6, 1991 and before March 1, 1992 for Class A shares issued by the corporation, and
ii. $3,500.
2. The amount of the tax credit deductible in determining the amount of tax payable under the Income Tax Act for the 1992 taxation year is 20 per cent of the lesser of,
i. the total amount of equity capital received by the corporation from the eligible investor between January 1, 1992 and March 1, 1993 for Class A shares issued by the corporation, other than any portion of the equity capital that was taken into consideration in determining the amount of a tax credit for 1991, and
ii. if the Class A shares were paid for during the first 60 days of 1992, $3,500 if a tax credit was deducted in determining the amount of tax payable under the Income Tax Act for the 1991 taxation year in respect of those Class A shares and $5,000 otherwise.
3. The amount of the tax credit deductible in determining the amount of tax payable under the Income Tax Act for the 1993, 1994 or 1995 taxation year is 20 per cent of the lesser of,
i. the total amount of equity capital received by the corporation from the eligible investor between January 1 of the taxation year and the 60th day of the following year for Class A shares issued by the corporation, other than any portion of the equity capital that was taken into consideration in determining the amount of a tax credit for the previous taxation year, and
ii. $5,000.
4. The amount of the tax credit deductible in determining the amount of tax payable under the Income Tax Act for the 1996 taxation year is the sum of,
i. the lesser of $1,000 and the amount equal to 20 per cent of the equity capital received by the corporation from the eligible investor after 1995 and before May 7, 1996 for Class A shares issued by the corporation, other than any portion of the equity capital that was taken into considerationin determining the amount of a tax credit for the 1995 taxation year, and
ii. the lesser of,
A. the amount by which $525 exceeds the amount, if any, determined under subparagraph i, and
B. the amount equal to 15 per cent of the equity capital received by the corporation from the eligible investor after May 6, 1996 and before March 2, 1997 for Class A shares issued by the corporation.
5. The amount of the tax credit deductible for each year in determining the amount of tax payable under the Income Tax Act for the 1997 and subsequent taxation years is the lesser of $525 and the amount equal to 15 per cent of the equity capital received by the corporation from the eligible investor between January 1 of the taxation year and the 60th day of the following year for Class A shares issued by the corporation, other than any portion of the equity capital that was taken into consideration in determining the amount of a tax credit for the previous taxation year.
8. The Act is amended by adding the following section:
Certificate of compliance
25.1 (1) A labour sponsored investment fund corporation shall, by the end of each time limit set out in subsections 17 (1) and (1.1), deliver to the Minister a certificate of the corporation certifying that the corporation is in compliance with sections 17 and 18.1 as of the date specified in the certificate.
Proof of compliance
(2) At the request of the Minister, a labour sponsored investment fund corporation shall provide, in addition to the certificate under subsection (1), sufficient additional information or documentation to prove to the satisfaction of the Minister that the corporation is in compliance with sections 17 and 18.1.
Failure to deliver certificate
(3) Despite section 25, if a corporation fails to deliver to the Minister a certificate required under subsection (1) at the time required by subsection (1) or the additional information or documentation required under subsection (2) by the date specified in the Minister's request,
(a) the corporation shall be considered not to be in compliance with sections 17 and 18.1; and
(b) no further tax credit certificates shall be issued under section 25 until the corporation delivers the certificate or provides the information or documentation.
Order to stop issuing certificates
(4) If the Minister is of the opinion that a labour sponsored investment fund corporation is not in compliance with section 17 or 18.1, the Minister may stop issuing tax credit certificates in respect of the corporation or, if the corporation issues tax credit certificates under an arrangement referred to in subsection 25 (9), order the corporation to stop issuing tax credit certificates, until the corporation provides proof to the satisfaction of the Minister that the corporation is in compliance with sections 17 and 18.1.
Penalty
(5) A labour sponsored investment fund corporation shall pay to the Minister a penalty equal to twice the total amount of all labour sponsored venture capital corporation tax credits for which it issued tax credit certificates contrary to subsection (3) or (4) under an arrangement referred to in subsection 25 (9).
Same
(6) If a labour sponsored investment fund corporation has delivered a certificate referred to in subsection (1) but was not in compliance with section 17 or 18.1 as of the date specified in the certificate or at any time afterwards, the corporation shall pay to the Minister a penalty equal to twice the total amount of all labour sponsored venture capital corporation tax credits for which tax credit certificates were issued at a time when the corporation was not in compliance with section 17 or 18.1.
Saving
(7) If a labour sponsored investment fund corporation can provide proof to the satisfaction of the Minister that a tax credit certificate in respect of a tax credit was issued at a time when the corporation was in compliance with sections 17 and 18.1, the amount of any penalty payable under this section shall be determined without reference to the tax credit.
Section 31 does not apply
(8) Section 31 does not apply to any action taken by the Minister under this section.
9. (1) Subsection 28 (1) of the Act is amended by striking out the portion before the formula and substituting the following:
(1) Except as provided in subsection (3), a labour sponsored venture capital corporation that fails to meet or maintain the level of eligible investments required by section 9 or 17 to be held by the corporation at the end of a particular fiscal year shall pay a tax for the year equal to the amount determined by the following formula:
. . . . .
(2) Section 28 of the Act is amended by adding the following subsections:
Investment level tax, labour sponsored investment fund
corporation
(3) A labour sponsored investment fund corporation that fails to meet or maintain the level of eligible investments required by section 17 to be held by the corporation at the end of a particular calendar year with respect to equity capital received after May 6, 1996 on the issue of Class A shares shall pay a tax for the year equal to the amount determined by the following formula:
T = (A x 15/100)
where,
"T" is the tax payable under this section, and
"A" is the amount by which the amount of the corporation's equity capital received after May 6, 1996 on the issue of its Class A shares that is required by this Act to be maintained in eligible investments as of the end of the calendar year exceeds the total of all amounts, each of which is the cost to the corporation of an eligible investment held by the corporation at the end of the calendar year.
Rebate
(4) Upon receipt of an application from a labour sponsored investment fund corporation that has paid a tax under subsection (3) with respect to a calendar year, the Minister may rebate the tax without interest to the corporation if,
(a) the application is received within three years after the end of the calendar year with respect to which the tax was imposed; and
(b) the Minister is satisfied that no later than the end of the second calendar year ending after the calendar year in respect of which the tax was imposed the labour sponsored investment fund corporation maintained throughout a full calendar year and continues tomaintain the level of eligible investments it is required by this Act to maintain.
10. Subsection 45 (1) of the Act is amended by adding the following clauses:
(l) providing that the amount of the tax credit in respect of any of the 1997 or a subsequent taxation year shall not be determined in accordance with paragraph 5 of subsection 25 (4) and prescribing the rules for determining the tax credit for that year;
(m) providing that the tax payable under subsection 28 (3) shall not be equal to the amount determined by the formula set out in that subsection and prescribing the rules for determining the tax payable under that subsection.
PART III
AMENDMENTS TO THE INCOME TAX ACT
11. (1) Clause (b) of the definition of "Provincial Minister" in subsection 1 (1) of the Income Tax Act, as re-enacted by the Statutes of Ontario, 1993, chapter 29, section 1, is repealed and the following substituted:
(b) in relation to the administration and enforcement of this Act, other than sections 28, 45, 49 and 53, the Minister.
(2) Clause 1 (6) (f) of the Act is amended by striking out "Bankruptcy Act (Canada)" in the second line and in the fourth and fifth lines and substituting "Bankruptcy and Insolvency Act (Canada)".
12. The definition of "income earned in the taxation year in Ontario" in subsection 4 (1) of the Act is repealed and the following substituted:
"income earned in the taxation year in Ontario" means the amount of income that would be determined to be earned in the year in Ontario for the purposes of determining the amount of income earned in the year in a province under section 120 of the Federal Act. ("revenu gagné en Ontario dans l'année d'imposition")
13. (1) Subsection 8 (8.1) of the Act, as enacted by the Statutes of Ontario, 1992, chapter 18, section 55 and amended by 1994, chapter 17, section 99, is further amended by striking out "under subsection (3), (4)" in the eighth line and substituting "under subsection (3), (3.1), (4)".
(2) Subclause 8 (8.1) (b) (ii) of the Income Tax Act, as enacted by the Statutes of Ontario, 1992, chapter 18, section 55, is repealed and the following substituted:
(ii) the maximum tax credit permitted for the taxation year in respect of investments made by a taxpayer in corporations registered under Part III of that Act.
(3) Section 8 of the Act, as amended by the Statutes of Ontario, 1992, chapter 18, section 55, 1992, chapter 25, section 3, 1993, chapter 29, section 6, 1994, chapter 17, section 99 and 1996, chapter 1, Schedule C, section 8, is further amended by adding the following subsection:
Interpretation, maximum tax credit
(8.1.1) The maximum tax credit permitted for a taxation year in respect of investments made by a taxpayer in corporations
registered under Part III of the Labour Sponsored Venture Capital Corporations Act, 1992 is,
(a) $700 for the 1991 taxation year;
(b) $1,000 for each of the 1992, 1993, 1994 and 1995 taxation years;
(c) for the 1996 taxation year the total of,
(i) the lesser of $1,000 and the amount equal to 20 per cent of the equity capital received by the corporation from the taxpayer after 1995 and before May 7, 1996 for Class A shares issued by the corporation, other than any portion of the equity capital that was taken into consideration in determining the amount of a tax credit for the 1995 taxation year, and
(ii) the lesser of,
(A) the amount by which $525 exceeds the amount, if any, determined under subclause (i), and
(B) the amount equal to 15 per cent of the equity capital received by the corporation from the taxpayer after May 6, 1996 and before March 2, 1997 for Class A shares issued by the corporation; and
(d) unless otherwise prescribed, $525 for the 1997 and each subsequent taxation year.
(4) Clauses 8 (10) (b) and (c) of the Act are repealed and the following substituted:
(b) contribution, penalty or interest owing by the individual for that or any prior taxation year as a result of payments required from the individual under the Canada Pension Plan; and
(c) premium, interest or penalty owing by the individual for that or any prior taxation year under the Unemployment Insurance Act (Canada),
(5) Section 8 of the Act, as amended by the Statutes of Ontario, 1992, chapter 18, section 55, 1992, chapter 25, section 3, 1993, chapter 29, section 6, 1994, chapter 17, section 99 and 1996, chapter 1, Schedule C, section 8, is further amended by adding the following subsections:
Co-operative education tax credit
(15) An eligible employer may claim for a taxation year a co-operative education tax credit equal to the sum of all amounts each of which is in respect of a qualifying co-op work placement that commences after August 31, 1996 and ends in the taxation year and is equal to the lesser of,
(a) 10 per cent of the eligible expenditures made by the employer in respect of the qualifying co-op work placement; and
(b) $1,000.
Regulations
(16) The Lieutenant Governor in Council may make regulations respecting the following matters relating to the co-operative education tax credit:
1. Defining "eligible employer" and prescribing the conditions that must be satisfied for a person to be an eligible employer in respect of a qualifying co-op work placement.
2. Defining "eligible expenditure" and prescribing the rules for determining the amount of eligible expenditures in respect of a qualifying co-op work placement.
3. Defining "qualifying co-op work placement" and prescribing the conditions that must be satisfied for a work placement to be a qualifying co-op work placement.
4. Prescribing the procedure for claiming a co-operative education tax credit, the restrictions on claiming the tax credit and the manner in which an eligible employer is to receive the benefit of the tax credit.
5. Prescribing the method of claiming a co-operative education tax credit where the employer is a partnership.
14. (1) Subsection 12 (1) of the Act is amended by striking out the portion before clause (a) and substituting the following:
(1) Every individual whose chief source of income is farming or fishing shall pay to the Provincial Minister,
. . . . .
(2) Subsection 12 (1) of the Act, as amended by subsection (1), applies with respect to instalments required after June 30, 1994.
15. (1) Subsection 13 (1) of the Act, as re-enacted by the Statutes of Ontario, 1993, chapter 29, section 9, is amended by striking out the portion before clause (a) and substituting the following:
(1) Every individual, other than an individual to whom section 12 applies, shall pay to the Provincial Minister in each taxation year the aggregate of,
. . . . .
(2) Subsection 13 (3) of the Act is amended by striking out "paragraph 156 (1) (a) of the Federal Act" in the sixth and seventh lines and substituting "subsection 156 (1) of the Federal Act".
(3) Subsection 13 (1) of the Act, as amended by subsection (1), applies with respect to instalments required after June 30, 1994.
(4) Subsection 13 (3) of the Act, as amended by subsection (2), applies to 1992 and subsequent taxation years.
16. Section 14 of the Act, as re-enacted by the Statutes of Ontario, 1993, chapter 29, section 10, is repealed and the following substituted:
Returns, payments and interest
14. Subsections 70 (2) and 104 (2), paragraph 104 (23) (e), sections 158, 159 and 160, subsections 160.1 (1) and (4), sections 160.2 and 160.3, subsections 161 (1), (2), (2.1), (2.2),(4), (4.01), (5), (6), (6.1), (7), (9) and (11) and sections 221.1 and 221.2 of the Federal Act apply for the purposes of this Act.
17. Subsection 23 (2) of the Act is repealed and the following substituted:
Basis for appeal
(2) In the course of disposing of an appeal from an assessment under this Act, the Court may make a determination in respect of any question relating to,
(a) the residence of a taxpayer for the purposes of the Act;
(b) the amount of income of a taxpayer earned in a taxation year in Ontario for the purposes of section 4;
(c) the amount of tax payable by a taxpayer for a taxation year, based on the amount of tax payable under the Federal Act for that year as defined in section 4;
(d) the amount of tax payable by a mining reclamation trust under section 2.1;
(e) the amount of any deduction under section 8;
(f) the application of any amount under subsection 8 (10); and
(g) the liability of a director to pay an amount under section 38.
Same
(2.1) No appeal from an assessment may be taken in respect of the computation of the amount of tax payable under the Federal Act as defined in section 4.
18. (1) Subsection 26 (1) of the Act, as re-enacted by the Statutes of Ontario, 1992, chapter 25, section 11, is repealed and the following substituted:
Procedure
(1) Sections 166, 179 and 179.1 of the Federal Act apply for the purposes of this Act.
(2) Subsection 26 (1) of the Act, as re-enacted by subsection (1), applies to appeals instituted after June 30, 1992.
19. (1) Clause 29 (1) (d) of the Act is amended by striking out "Ministry of Revenue" in the second line and substituting "Ministry of Finance".
(2) Subsection 29 (1) of the Act is further amended by adding the following clause:
(e) prescribing the maximum tax credit or the method of determining the maximum tax credit permitted for a taxation year in respect of investments made by a taxpayer in corporations registered under Part III of the Labour Sponsored Venture Capital Corporations Act, 1992 for the purposes of subsection 8 (8.1.1).
20. (1) Subsection 34 (1) of the Act, as amended by the Statutes of Ontario, 1993, chapter 29, section 2, is repealed and the following substituted:
Definition
(1) In this section,
"tax debtor" means a person who is liable to make a payment under this Act. ("débiteur fiscal")
Money seized in criminal proceeding
(1.1) Where the Provincial Minister knows or suspects that a particular person is holding money that was seized by a police officer in the course of administering or enforcing the criminal law of Canada from a tax debtor and that is restorable to the tax debtor, the Provincial Minister may in writing require the particular person to turn over the money otherwise restorable to the tax debtor in whole or in part to the Provincial Minister on account of the tax debtor's liability under this Act.
(2) Subsection 34 (1) of the Act, as re-enacted by subsection (1), applies to requirements made after December 31, 1992.
21. Section 36 of the Act is repealed and the following substituted:
Demand for payment
36. (1) Where the Provincial Minister suspects that a taxpayer has left or is about to leave Ontario or Canada, the Provincial Minister may, before the day otherwise fixed for payment, by notice served personally or by registered letter addressed to the taxpayer's latest known address, demand payment of all taxes, interest and penalties for which the taxpayer is liable or would be liable if the time for payment had arrived, and that amount shall be paid forthwith despite any other provision of this Act.
Seizure of goods for failure to comply with demand
(2) Where a taxpayer has failed to pay tax, interest or penalties demanded under this section as required, the Provincial Minister may direct that the goods and chattels of the taxpayer that are located in Ontario be seized, and thereupon subsections 225 (2), (3), (4) and (5) of the Federal Act apply.
22. (1) Subsection 37 (1) of the Act, as amended by the Statutes of Ontario, 1993, chapter 29, section 15, is repealed and the following substituted:
Money withheld
(1) Subsections 227 (1), (2), (3), (4), (5), (8), (8.2), (8.3), (8.4), (9), (9.1), (9.2), (9.4) and (9.5) of the Federal Act apply for the purposes of this Act.
(2) Subsection 37 (1) of the Act, as re-enacted by subsection (1), is repealed and the following substituted:
Money withheld
(1) Subsections 227 (1), (2), (3), (4), (8), (8.2), (8.3), (8.4), (9), (9.1), (9.2), (9.4) and (9.5) of the Federal Act apply for the purposes of this Act.
(3) The reference to subsection 227 (9.1) of the Federal Act in subsection 37 (1) of the Act, as re-enacted by subsection (1), applies in respect of amounts required to be remitted after December 31, 1992.
(4) The reference to subsection 227 (9.1) of the Federal Act in subsection 37 (1) of the Act, as re-enacted by subsection (2), applies in respect of amounts required to be remitted after December 31, 1992.
23. Clause 38 (2) (c) of the Act is amended by striking out "the Bankruptcy Act (Canada)" in the third and fourth lines and substituting "the Bankruptcy and Insolvency Act (Canada)".
24. (1) Subsection 45 (1.1) of the Act, as enacted by the Statutes of Ontario, 1993, chapter 29, section 17, is repealed and the following substituted:
Taxpayer information
(1.1) In this section,
"taxpayer information" has the meaning assigned by subsection 241 (10) of the Federal Act. ("renseignements confidentiels")
(2) Subsection 45 (3) of the Act, as amended by the Statutes of Ontario, 1993, chapter 29, section 2, is further amended by adding "or" at the end of clause (a), by striking out "or" at the end of clause (b) and by striking out clause (c).
25. (1) Section 48 of the Act, as amended by the Statutes of Ontario, 1993, chapter 29, section 18, is further amended by striking out "Ministry of Revenue" wherever it appears and substituting "Ministry of Finance".
(2) Subsection 48 (21) of the Act, as enacted by the Statutes of Ontario, 1993, chapter 29, section 18, is repealed.
PART IV
AMENDMENTS TO THE CORPORATIONS TAX ACT
26. Subsections 43.3 (17) and (18) of the Corporations Tax Act, as enacted by the Statutes of Ontario, 1996, chapter 1, Schedule B, section 7, are repealed.
27. The Act is amended by adding the following sections:
Co-operative education tax credit
43.4 (1) A corporation that complies with the requirements of this section may deduct from its tax otherwise payable under this Part for the taxation year, after making all deductions claimed under sections 39, 40, 41, 43, 43.2 and 43.3 for the taxation year, an amount not exceeding the amount of its co-operative education tax credit for the taxation year.
Same
(2) A corporation that complies with the requirements of this section may deduct from its tax otherwise payable for the year under Parts III and IV an amount not exceeding the amount by which its co-operative education tax credit for the taxation year exceeds the maximum amount, if any, deductible by the corporation for the year under subsection (1).
Amount of tax credit
(3) The amount of a corporation's co-operative education tax credit for a taxation year is the sum of all amounts each of which is in respect of a qualifying co-op work placement that commences after August 31, 1996 and ends in the taxation year and is equal to the lesser of,
(a) 10 per cent of the total of all eligible expenditures made by the corporation in respect of the qualifying co-op work placement; and
(b) $1,000.
Certification of qualifying co-op work placement
(4) Every eligible educational institution in Ontario that has a co-operative education program that has qualifying co-op work placements shall issue a certificate in a form approved by the Minister to every corporation providing a qualifying co-op work placement, certifying that the placement was a qualifying co-opwork placement for the purposes of this section and setting out the dates the placement started and ended, the name of the student and any additional information required by the Minister to be included in the certificate.
Same
(5) Unless otherwise directed by the Minister, a corporation shall deliver the certificate under subsection (4) to the Minister with the corporation's return for the year for which a deduction or claim in respect of the qualifying co-op work placement is made under this section.
Corporate partner
(6) If a corporation is a member of a partnership and the partnership would qualify in a particular taxation year of the corporation for a co-operative education tax credit if the partnership were a corporation whose fiscal period was its taxation year, the portion of that co-operative education tax credit that may reasonably be considered to be the corporation's share of the tax credit may be included in determining the amount of the corporation's co-operative education tax credit for the corporation's taxation year.
Limited partner
(7) Despite subsection (6), a limited partner's share of a partnership's tax credit referred to in subsection (6) shall be deemed to be nil.
Deemed tax payment
(8) A corporation shall be deemed to pay on account of its tax payable under this Act for a taxation year an amount claimed by the corporation, not exceeding the amount, if any, by which,
(a) the corporation's co-operative education tax credit for the taxation year;
exceeds
(b) the maximum amount, if any, deductible by the corporation under subsections (1) and (2) in determining its tax payable under this Act for the taxation year.
Time of deemed payment
(9) A corporation shall be deemed to make the payment referred to in subsection (8) and the Minister shall be deemed to apply the deemed payment on the day on or before which the corporation would be required under clause 78 (2) (b) to pay any balance of tax payable for the taxation year.
Definitions
(10) In this section,
"eligible educational institution" means an educational institution that satisfies the conditions prescribed by the regulations; ("établissement d'enseignement autorisé")
"eligible expenditure" means an amount determined in the manner prescribed by the regulations in respect of an expenditure that satisfies the conditions prescribed by the regulations; ("dépense autorisée")
"qualifying co-op work placement" has the meaning prescribed by the regulations. ("stage d'éducation coopérative admissible")
Ontario film and television tax credit
43.5 (1) A corporation that is a qualifying production company for a taxation year and complies with the requirements of this section may deduct from its tax otherwise payable under this Part for the taxation year, after making all deductions claimed under sections 39, 40, 41, 43, 43.2, 43.3 and 43.4 for the taxation year, an amount not exceeding the amount of its Ontario film and television tax credit for the taxation year.
Same
(2) A corporation that is a qualifying production company for a taxation year and complies with the requirements of this section may deduct from its tax otherwise payable for the year under Parts III and IV of the Act an amount not exceeding the amount by which its Ontario film and television tax credit for the taxation year exceeds the maximum amount, if any, deductible by the corporation for the year under subsection (1).
Amount of tax credit
(3) The amount of a qualifying production company's Ontario film and television tax credit for a taxation year is the sum of the company's eligible credits for the taxation year in respect of eligible Ontario productions.
Eligible credit, first-time production
(4) A qualifying production company's eligible credit for a taxation year in respect of a first-time production is the lesser of,
(a) the sum of
(i) 30 per cent of the lesser of,
(A) the amount by which $240,000 exceeds the amount of qualifying labour expenditures for previous taxation years for the production, and
(B) the company's qualifying labour expenditure for the taxation year for the production, and
(ii) 15 per cent of the company's qualifying labour expenditure for the taxation year for the production in excess of the lesser of the amounts determined under sub-subclauses (i) (A) and (B), and
(b) the amount by which,
(i) the amount certified under subsection (9) in respect of the production,
exceeds
(ii) the sum of all amounts in respect of the production that were deducted from tax under this section for a prior taxation year or were deemed by this section to be paid on account of tax payable under this Act for a prior taxation year.
Exception, first-time production
(5) If the total amount of the qualifying labour expenditures for a first-time production is $50,000 or less, the total amount of all eligible credits in respect of the production is determined according to the following rules:
1. If the total amount of the qualifying labour expenditures is $15,000 or less, the total amount of all eligible credits in respect of the production is the lesser of,
(i) the total amount of the qualifying labour expenditures, and
(ii) the amount certified under subsection (9) in respect of the production.
2. If the total amount of the qualifying labour expenditures is between $15,000 and $50,000, the total amount of all eligible credits in respect of the production is the lesser of,
(i) $15,000, and
(ii) the amount certified under subsection (9) in respect of the production.
Eligible credit, other productions
(6) A qualifying production company's eligible credit for a taxation year in respect of an eligible Ontario production that is not a first-time production is the lesser of,
(a) 15 per cent of the company's qualifying labour expenditure for the taxation year for the production; and
(b) the amount by which,
(i) the amount certified under subsection (9) in respect of the production,
exceeds
(ii) the sum of all amounts in respect of the production that were deducted from tax under this section for a prior taxation year or were deemed by this section to be paid on account of tax payable under this Act for a prior taxation year.
Application for certificate
(7) In order to be eligible to deduct or claim an amount in respect of an Ontario film and television tax credit under this section with respect to a particular production, a qualifying production company shall apply to the Ontario Film Development Corporation, or to another person designated by the Minister of Citizenship, Culture and Recreation, for certification that the production is an eligible Ontario production for the purposes of this section.
Same
(8) A qualifying production company that applies for certification shall provide the information specified for the purposes of this section by the Ontario Film Development Corporation or the person designated by the Minister of Citizenship, Culture and Recreation to the person who specified that it be provided.
Certificate
(9) If the particular production is an eligible Ontario production for the purposes of this section, the Ontario Film Development Corporation or the person designated by the Minister of Citizenship, Culture and Recreation shall issue to the qualifying production company a certificate and any amended certificates, each certificate certifying that the particular production is an eligible Ontario production for the purposes of this section and the amount of the company's Ontario film and television tax credit limit to be allocated to the particular production.
Same
(10) In order to deduct or claim an amount under this section for a taxation year in respect of a particular production, a qualifying production company must deliver to the Minister with its return for the taxation year the certificate most recently issued in respect of the production or a certified copy of it.
Tax credit limit
(11) The amount of the Ontario film and television tax credit limit of a qualifying production company and all corporations associated with the company is $2,000,000 in respect of all eligible Ontario productions commenced in the same production year by the company or a corporation associated with the company.
Same
(12) No person shall issue certificates under subsection (9) in which the total of the amounts certified in respect of eligible Ontario productions commenced in the same production year by the qualifying production company and all corporations associated with the company in the year would exceed $2,000,000.
Maximum certified amount
(13) The amount that may be allocated to a particular eligible Ontario production and certified under subsection (9) shall not exceed,
(a) if the production is an eligible television series production, the lesser of,
(i) $1,500,000, and
(ii) the amount by which $2,000,000 exceeds the sum of all amounts previously certified under subsection (9) in respect of eligible Ontario productions commenced in the same production year as the particular production by the qualifying production company or a corporation associated with the company; or
(b) if the production is not an eligible television series production, the lesser of,
(i) $500,000, and
(ii) the amount by which $2,000,000 exceeds the sum of all amounts previously certified under subsection (9) in respect of eligible Ontario productions commenced in the same production year as the particular production by the qualifying production company or a corporation associated with the company.
Deemed tax payment
(14) A qualifying production company shall be deemed to pay on account of its tax payable under this Act for a taxation year an amount claimed by the company not exceeding the amount, if any, by which,
(a) the company's Ontario film and television tax credit for the taxation year;
exceeds,
(b) the maximum amount, if any, deductible by the company under subsections (1) and (2) in determining its tax payable under this Act for the taxation year.
Time of deemed payment
(15) A qualifying production company shall be deemed to make the payment referred to in subsection (14) and the Minister shall be deemed to apply the deemed payment on the day on or before which the company would be required under clause 78 (2) (b) to pay any balance of tax payable for the taxation year.
Revocation of certificate
(16) A certificate or amended certificate issued under subsection (9) may be revoked if an omission or incorrect statement was made for the purpose of obtaining the certificate or the production is not an eligible Ontario production.
Same
(17) A certificate that is revoked shall be deemed never to have been issued.
Amount of last certificate
(18) If the last issued certificate in respect of a production certifies an amount less than the amount certified in a previously issued certificate in respect of the production, every amount that may be deducted or claimed under this section for a taxation year by a qualifying production company in respect of the production shall be deemed to be the amount that would havebeen determined if the last certificate issued had been the only certificate issued.
Definitions
(19) In this section,
"eligible Ontario production" means a film or television production that satisfies the conditions prescribed by the regulations; ("production ontarienne admissible")
"eligible television series production" means an eligible Ontario production that satisfies the conditions prescribed by the regulations; ("production admissible d'une série télévisée")
"first-time production" means an eligible Ontario production that is a first-time production under the rules prescribed by the regulations; ("première production")
"qualifying labour expenditure" means the amount determined under the rules prescribed by the regulations in respect of labour expenditures incurred after June 30, 1996 in respect of a production in which the principal photography or key animation commenced after May 7, 1996; ("dépense de main-d'oeuvre admissible")
"qualifying production company" means a corporation that satisfies the conditions prescribed by the regulations;
("société de production admissible")
"production year" means the twelve month period prescribed by the regulations. ("année de production")
. . . . .
Rules applicable to specified tax credits
44.1 (1) Despite any other provision of this Act, a corporation that is exempt from tax under this Act for a taxation year by virtue of section 57 shall not deduct or claim an amount in respect of a specified tax credit under this Act for the taxation year.
Same
(2) A corporation shall be considered not to be entitled to deduct an amount from tax payable under this Part for a taxation year in respect of a specified tax credit, other than a mining reclamation trust tax credit under section 43.2, for the purposes of determining an amount referred to in sub-subclause 43.1 (2) (a) (ii) (A), subclause 43.1 (2) (b) (ii) or 43.1 (3) (b) (ii) or clause 57.3 (2) (b) or 74.1 (1) (b).
Same
(3) A deduction allowed to a corporation under subsection 43.1 (2) for a taxation year shall not exceed the amount of tax payable by the corporation for the year under this Part after deduction of all specified tax credits deductible for the year other than a mining reclamation trust tax credit under section 43.2.
Specified tax credit
(4) The following tax credits are specified tax credits for the purposes of this section:
1. A mining reclamation trust tax credit under section 43.2.
2. An Ontario innovation tax credit under section 43.3.
3. A co-operative education tax credit under section 43.4.
4. An Ontario film and television tax credit under section 43.5.
When assistance received
(5) For the purposes of this Act, other than sections 43.3, 43.4 and 43.5, the following amounts shall be assistance deemed to be received by a corporation from a government immediately before the end of a taxation year:
1. All amounts that the corporation deducts under sections 43.3, 43.4 and 43.5 in determining the amount of its tax payable under this Act for the taxation year.
2. All amounts that the corporation is deemed under those sections to have paid on account of its tax payable under this Act for the taxation year.
28. Subsection 76 (6) of the Act, as re-enacted and amended by the Statutes of Ontario, 1996, chapter 1, Schedule B, section 10, is further amended by striking out "and" at the end of clause (b) and by adding the following clauses:
(d) the amount, if any, by which,
(i) the amount that would be deemed by subsection 43.4 (8) to be paid for the year by the corporation if that amount were calculated by reference to the amount of the tax credit claimed by the corporation for the year under that subsection as a payment made on account of its tax for the year,
exceeds,
(ii) the maximum amount that the corporation is entitled to claim for the year under subsection 43.4 (8) as a deemed payment on account of its tax payable for the year; and
(e) the amount, if any, by which,
(i) the amount that would be deemed by subsection 43.5 (14) to be paid for the year by the corporation if that amount were calculated by reference to the amount of the tax credit claimed by the corporation for the year under that subsection as a payment made on account of its tax for the year,
exceeds,
(ii) the maximum amount that the corporation is entitled to claim for the year under subsection 43.5 (14) as a deemed payment on account of its tax payable for the year.
29. (1) Clause 78 (5) (b) of the Act, as re-enacted by the Statutes of Ontario, 1996, chapter 1, Schedule B, section 11, is repealed and the following substituted:
(b) one-twelfth of the total of all amounts deemed by section 43.2, 43.3, 43.4 or 43.5 to have been paid on account of the corporation's tax payable under this Act for the year.
(2) Clause 78 (6) (a) of the Act, as re-enacted by the Statutes of Ontario, 1996, chapter 1, Schedule B, section 11, is repealed and the following substituted:
(a) the tax payable by the corporation for the taxation year is less than $2,000 after deducting all amounts, if any, deemed under section 43.2, 43.3, 43.4 or 43.5 to be tax paid by the corporation for the taxation year and the amount, if any, of its capital gains refund as determined under section 48 for the taxation year; or
. . . . .
30. Clause 80 (1) (b.1) of the Act, as re-enacted by the Statutes of Ontario, 1996, chapter 1, Schedule B, section 13, is repealed and the following substituted:
(b.1) determine the total of the amounts, if any, deemed under section 43.2, 43.3, 43.4 or 43.5 to be paid on account of the corporation's tax payable under this Act for the taxation year; and
. . . . .
31. Subsection 112 (1) of the Act, as amended by the Statutes of Ontario, 1994, chapter 14, section 52, is further amended by adding the following clauses:
(h) prescribing rules for determining in which production year an eligible Ontario production is considered to commence for the purposes of section 43.5;
(i) prescribing rules for the purposes of section 43.5 in respect of labour expenditures incurred in respect of first-time productions and eligible Ontario productions that are not first-time productions;
(j) prescribing methods of claiming and obtaining the benefit of a co-operative education tax credit, other than as set out in section 43.4, and the procedures to be followed.
PART V
AMENDMENTS TO THE LAND TRANSFER TAX ACT
32. Section 9 of the Land Transfer Tax Act, as amended by the Statutes of Ontario, 1994, chapter 18, section 4, is further amended by adding the following subsection:
Deemed application of section 3
(7) For the purposes of this section, a reference to a conveyance shall be deemed to include a disposition of a beneficial interest in land and a reference to the tax paid or payable under subsection 2 (1) shall be deemed to include the tax paid or payable under subsection 3 (2).
PART VI
AMENDMENTS TO THE FINANCIAL ADMINISTRATION ACT
33. (1) Subsection 2 (2) of the Financial Administration Act, as re-enacted by the Statutes of Ontario, 1991, chapter 55, section 1 and amended by 1994, chapter 17, section 62, is repealed and the following substituted:
Establishment of bank accounts
(2) The Minister of Finance shall establish in the name of the Minister of Finance, and may authorize an agency of the Crown to establish in the name of the agency, accounts with any bank, trust corporation, co-operative credit society, credit union, caisse populaire, credit union league or caisse populaire league that is designated by the Minister of Finance for the deposit of public money.
(2) Section 2 of the Act, as amended by the Statutes of Ontario, 1991, chapter 55, section 1, and 1994, chapter 17, section 62, is further amended by adding the following subsections:
Exception
(4) Despite subsection (3), the Minister of Finance, on any conditions he or she considers appropriate, may in writing authorize a person who receives or collects public money to retain out of such public money all or any part of any amount owed by the Crown in right of Ontario to the person and payable from the Consolidated Revenue Fund.
Same
(5) An amount properly retained pursuant to an authorization under subsection (4) shall be deemed to have been received by and paid from the Consolidated Revenue Fund in respect of the person to whom the authorization under subsection (4) was given.
34. (1) Subsection 3 (1) of the Act, as re-enacted by the Statutes of Ontario, 1991, chapter 55, section 2 and amended by 1994, chapter 17, section 62, is further amended by adding the following clause:
(g.1) securities loan agreements, repurchase or reverse repurchase agreements relating to securities issued by Ontario or to any financial instrument or agreement in which the Minister of Finance is authorized to invest under this subsection.
(2) Section 3 of the Act, as amended by the Statutes of Ontario, 1991, chapter 55, section 2 and 1994, chapter 17, section 62, is further amended by adding the following subsection:
Investment not a loan
(2.1) Any bill, instrument, agreement, investment or evidence of indebtedness that the Minister of Finance purchases, acquires, holds or enters into under subsection (1) shall be deemed not to be a loan for the purposes of section 18.
35. Section 8.1 of the Act, as enacted by the Statutes of Ontario, 1991, chapter 55, section 3 and amended by the Statutes of Ontario, 1994, chapter 17, section 62, is repealed and the following substituted:
Additional fee for failure of payment
8.1 If a person purports to pay public money by delivering to a person entitled to collect or receive public money anything other than legal tender, within the meaning of subsection 8 (1) of the Currency Act (Canada), and if, as a result, the Minister of Finance fails to receive full and unconditional payment or settlement, the person is liable to pay to the Minister as a debt due to the Crown the additional fee that the Minister requires and that is prescribed by the regulations made under this Act.
36. Subsection 11 (1) of the Act, as re-enacted by the Statutes of Ontario, 1991, chapter 55, section 4 and amended by 1994, chapter 17, section 62, is repealed and the following substituted:
Payments out of Consolidated Revenue Fund
(1) Every payment out of the Consolidated Revenue Fund shall be made by cheque or by any other method of payment or transfer approved by the Minister of Finance in writing.
Signatures
(1.1) Every cheque making a payment from the Consolidated Revenue Fund shall be signed by the Minister of Finance and one of the following persons and every authorization making a payment from the Consolidated Revenue Fund pursuant to a method ofpayment or transfer approved under subsection (1) shall be given by the Minister of Finance and one of the following persons:
1. The Deputy Minister of Finance.
2. A person employed in the Ministry of Finance or in the Ontario Financing Authority who is authorized by the Minister of Finance in writing to sign the cheque or give the authorization.
Other signatures authorized
(1.2) Despite subsection (1.1), the Minister of Finance may authorize in writing, on any conditions he or she considers appropriate,
(a) another minister to sign any cheque or class of cheques or to give any authorization or class of authorizations making a payment from the Consolidated Revenue Fund instead of the Minister of Finance; and
(b) any person employed in the ministry presided over by that other minister to sign any such cheque or class of cheques or to give any such authorization or class of authorizations instead of the Deputy Minister of Finance or other person referred to in paragraph 2 of subsection (1.1).
Other payments and deposits
(1.3) For the more efficient management of the Consolidated Revenue Fund, the Minister of Finance may enter into any written arrangements he or she considers appropriate with any person for the making of deposits to, or payments from, the Consolidated Revenue Fund electronically or by the use of a credit card, debit card or similar arrangement.
37. (1) Subsection 23 (1) of the Act, as amended by the Statutes of Ontario, 1991, chapter 55, section 10 and 1994, chapter 17, section 62, is further amended by striking out "from any bank listed in Schedule I or II to the Bank Act (Canada)" in the first three lines after clause (c) and substituting "for not more than 365 days from any bank, corporation, government, person or authority".
(2) Section 23 of the Act, as amended by the Statutes of Ontario, 1991, chapter 55, section 10 and 1994, chapter 17, section 62, is further amended by adding the following subsection:
Limitation
(3) A loan under this section shall not be paid, renewed, repaid or replaced under paragraph 1 of section 21.
38. (1) Subsection 26 (1) of the Act, as re-enacted by the Statutes of Ontario, 1991, chapter 55, section 12, is amended by striking out "(2) and (3)" in the seventh line and substituting "(2), (3) and (4)".
(2) Subsection 26 (2) of the Act, as re-enacted by the Statutes of Ontario, 1991, chapter 55, section 12, is repealed and the following substituted:
Loans in foreign currency
(2) If, under the authority of this or any other Act, money is borrowed or securities are issued and sold in a currency other than Canadian dollars, the amount borrowed or the amount for which the securities were sold shall be deemed, in Canadian dollars, to be the amount that would be realized by converting to Canadian dollars the amount of the loan or the amount received by Ontario on the sale of the securities, before any deduction for commission, expenses or other similar costs of their issue and sale, at the Bank of Canada Canadian dollar noon spot exchange rate for that currency on the day that is,
(a) a day on which the Bank of Canada provided a Canadian dollar noon spot exchange rate for that currency; and
(b) before and as close as possible to the day when the money is borrowed or securities are sold.
(3) Subsection 26 (4) of the Act, as enacted by the Statutes of Ontario, 1991, chapter 55, section 12 and amended by 1994, chapter 17, section 62, is repealed and the following substituted:
Foreign currency securities refinanced under section 21
(4) The Canadian dollar equivalent of the sum that may be raised under section 21 for the payment, renewal, repayment or replacement of a loan or security denominated in a currency other than Canadian dollars is,
(a) when the sum is raised on or before the day the loan or security becomes due or matures, the amount that would be realized by converting to Canadian dollars the amount of the loan or security at the Bank of Canada Canadian dollar noon spot exchange rate for the currency in which the loan or security is denominated on the day that is,
(i) a day on which the Bank of Canada provided a Canadian dollar noon spot exchange rate for that currency, and
(ii) before and as close as possible to the day when the money is borrowed or the security is sold to raise the sum, or
(b) when the sum is raised after the day the loan or security became due or matured, the amount that would be realized by converting to Canadian dollars the amount of the loan or security at the Bank of Canada Canadian dollar noon spot exchange rate for the currency in which the loan or security is denominated on the day that is,
(i) a day on which the Bank of Canada provided a Canadian dollar noon spot exchange rate for that currency, and
(ii) before and as close as possible to the day when the loan or security became due or matured.
39. Section 26.1 of the Act, as enacted by the Statutes of Ontario, 1991, chapter 55, section 12, is amended by adding the following subsections:
Exchange for unissued securities
(2) Despite this or any other Act, the Minister of Finance, on any terms and conditions he or she approves, may determine as a term of a security issued under this Act that the security may be exchanged for one or more securities of Ontario to be subsequently issued with a maturity, rate of interest or other terms and conditions different from those contained in the security for which it is to be exchanged if the exchange will not increase the total outstanding principal amount of debt owed by Ontario.
Same
(3) The Minister of Finance may, without further order of the Lieutenant Governor in Council, issue securities of Ontario to effect the exchange in accordance with the terms and conditions of the security that provide for the exchange.
Borrowing limit not affected
(4) The subsequent issue of securities under subsection (3) shall not be taken into account in computing a borrowing limit under this or any other Act.
Application of section 21
(5) Section 21 does not apply with respect to securities exchanged for subsequently issued securities pursuant to subsection (2).
PART VII
GENERAL
Commencement
40. (1) Subject to the following subsections, this Act comes into force on the day it receives Royal Assent.
Same
(2) Section 32 shall be deemed to have come into force on July 19, 1989.
Same
(3) Section 21 shall be deemed to have come into force on December 17, 1991.
Same
(4) Subsections 13 (1) and 15 (2) and (4) shall be deemed to have come into force on January 1, 1992.
Same
(5) Subsection 11 (2) and section 23 shall be deemed to have come into force on November 30, 1992.
Same
(6) Section 20 and subsections 22 (1) and (3) shall be deemed to have come into force on January 1, 1993.
Same
(7) Section 16 shall be deemed to have come into force on June 10, 1993.
Same
(8) Section 18 shall be deemed to have come into force on June 11, 1993.
Same
(9) Subsection 11 (1) and section 24 shall be deemed to have come into force on December 14, 1993.
Same
(10) Section 17 shall be deemed to have come into force on February 23, 1994.
Same
(11) Section 12 shall be deemed to have come into force on March 1, 1994.
Same
(12) Subsections 22 (2) and (4) shall be deemed to have come into force on June 15, 1994.
Same
(13) Section 14 and subsections 15 (1) and (3) shall be deemed to have come into force on July 1, 1994.
Same
(14) Subsections 13 (2), (3) and (5) shall be deemed to have come into force on January 1, 1996.
Same
(15) Subsection 1 (1) shall be deemed to have come into force on April 1, 1996.
Same
(16) Sections 5 to 10 shall be deemed to have come into force on May 7, 1996.
Same
(17) Subsections 1 (2) to (4), subsection 2 (1), section 4, subsection 19 (2) and sections 26 to 31 shall be deemed to have come into force on May 8, 1996.
Same
(18) Subsection 2 (2) and section 3 come into force on January 1, 1997.
Short title
41. The short title of this Act is the Tax Credits and Economic Stimulation Act, 1996.