[37] Bill 72 Royal Assent (PDF)
Bill 72
Bill 722000
An Act to pay a dividend
to Ontario taxpayers, cut taxes,
create jobs and implement the Budget
Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:
Part I
Corporations Tax Act
1.(1)Subsection 11 (5) of the Corporations Tax Act, as re-enacted by the Statutes of Ontario, 1998, chapter 34, section 28, is repealed and the following substituted:
Add-back of certain amounts paid to non-residents
(5)Every corporation shall include in its income from a business or property for a taxation year the amount calculated using the formula,
A B
in which, "
A"is the designated fraction of the corporation for the taxation year, as determined under subsection (8.1), and "
B"is the total of the amounts described in subsection (5.1) deducted by the corporation in computing its income for the taxation year, each of which is paid or payable to,
(a)a non-resident person who, at any time in the corporation's taxation year, did not deal at arm's length with the corporation, or
(b)a non-resident owned investment corporation which, at any time in the corporation's taxation year, did not deal at arm's length with the corporation.
(2)Subsection 11 (5.4) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 34, section 28, is repealed and the following substituted:
Adjustment for unpaid amounts
(5.4)In computing its income for a taxation year, a corporation may deduct the amount calculated using the formula,
A B
in which, "
A"is the designated fraction of the corporation for the taxation year, as determined under subsection (8.1), and "
B"is any amount required to be included in the corporation's income for the taxation year under section 78 of the Income Tax Act (Canada), if the amount is included in the calculation of an amount included in the corporation's taxable income under subsection (5) or (6) for the taxation year or a prior taxation year.
(3)Subsection 11 (6) of the Act is repealed and the following substituted:
Certain payments to non-resident persons
(6)Subsection (6.1) applies,
(a)if an amount to which subsection (5) would have applied in a taxation year if it had been paid or payable to a non-resident person is paid or payable by a corporation (the "payer") to a related person (the "payee") resident in Canada but not in Ontario, and
(b)if the payee is related to another person not resident in Canada that controls the payer.
Same
(6.1)In the circumstances described in subsection (6), the corporation that is the payer shall include in computing its income from a business or property for the taxation year the amount calculated using the formula,
A B
in which, "
A"is the designated fraction of the corporation that is the payer, as determined under subsection (8.1), and "
B"is the amount referred to in subsection (6) for the taxation year.
(4)Section 11 of the Act, as amended by the Statutes of Ontario, 1992, chapter 3, section 2, 1994, chapter 14, section 4, 1996, chapter 29, section 37, 1997, chapter 43, Schedule A, section 5, 1998, chapter 34, section 28 and 1999, chapter 9, section 75, is further amended by adding the following subsections:
Designated fraction of a corporation
(8.1)The designated fraction of a corporation for a taxation year is the total of,
(a)5/15.5 multiplied by the ratio of the number of days in the taxation year before May 2, 2000 to the total number of days in the taxation year;
(b)5/14.5 multiplied by the ratio of the number of days in the taxation year after May 1, 2000 and before January 1, 2001 to the total number of days in the taxation year; and
(c)5/14 multiplied by the ratio of the number of days in the taxation year after December 31, 2000 to the total number of days in the taxation year.
. . . . .
Application provision, 2000 Budget
(28)Subsections (5), (5.4), (6), (6.1) and (8.1), as they are enacted or re-enacted, as the case may be, by the Taxpayer Dividend Act, 2000, apply with respect to taxation years ending after May 1, 2000.
2.Sections 38 and 39 of the Act are repealed and the following substituted:
Amount of tax payable
38. (1)The tax payable by a corporation for a taxation year under this Part on its taxable income or on its taxable income earned in Canada, as the case may be, is the amount determined by multiplying such amount by the specified basic rate of the corporation for the taxation year.
Specified basic rate
(2)The specified basic rate of a corporation for a taxation year is the total of,
(a)15.5 per cent multiplied by the ratio of the number of days in the taxation year that are before May 2, 2000 to the number of days in the taxation year;
(b)14.5 per cent multiplied by the ratio of the number of days in the taxation year that are after May 1, 2000 and before January 1, 2001 to the total number of days in the taxation year; and
(c)14 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2000 to the total number of days in the taxation year.
Application provision, 2000 Budget
(3)This section, as it is re-enacted by the Taxpayer Dividend Act, 2000, applies with respect to taxation years ending after May 1, 2000.
Deduction from income tax
39. (1)There may be deducted from the tax otherwise payable under this Part for a taxation year by a corporation an amount calculated using the formula,
A B
in which, "
A"is the specified basic rate of the corporation for the taxation year, as determined under subsection 38 (2), and "
B"is that portion of the taxable income or the taxable income earned in Canada, as the case may be, of the corporation which is earned in the taxation year in each jurisdiction other than Ontario, determined under rules prescribed by the regulations.
Application provision, 2000 Budget
(2)This section, as it is re-enacted by the Taxpayer Dividend Act, 2000, applies with respect to taxation years ending after May 1, 2000.
3.(1)Clause 40 (1) (e) of the Act is repealed and the following substituted:
(e)the amount calculated using the formula,
A B C
in which, "
A"is the amount of the foreign investment income, "
B"is the specified basic rate of the corporation for the taxation year, as determined under subsection 38 (2), and "
C"is the corporation's Ontario allocation factor for the taxation year.
(2)Section 40 of the Act, as amended by the Statutes of Ontario, 1994, chapter 14, section 13, is further amended by adding the following subsection:
Application provision, 2000 Budget
(6)Clause (1) (e), as it is re-enacted by the Taxpayer Dividend Act, 2000, applies with respect to taxation years ending after May 1, 2000.
4.(1)Clauses 41 (1.1) (d), (e), (f), (g), (h), (i) and (j) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 5, section 10, are repealed and the following substituted:
(d)7.5 per cent, in respect of a taxation year that ends after December 31, 1999 and before January 1, 2002;
(e)8 per cent, in respect of a taxation year that ends after December 31, 2001 and before January 1, 2003;
(f)8.5 per cent, in respect of a taxation year that ends after December 31, 2002 and before January 1, 2004;
(g)9 per cent, in respect of a taxation year that ends after December 31, 2003 and before January 1, 2005;
(h)10 per cent, in respect of a taxation year that ends after December 31, 2004.
(2)Subsection 41 (1.4) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 5, section 10, is amended by striking out "Despite clauses (1.1) (d) to (j)" and substituting "Despite clauses (1.1) (d) to (h)".
(3)Subsection 41 (2) of the Act is repealed and the following substituted:
Same
(2)For the purpose of subsection (1), the amount determined under this subsection is the amount calculated using the formula,
A B
in which, "
A"is the least of the amounts determined under paragraphs 125 (1) (a), (b) and (c) of the Income Tax Act (Canada) for the taxation year and not exceeding the total of the amounts described in clauses (3.2) (a) to (f), and "
B"is the Ontario small business allocation factor for the taxation year.
(4)Section 41 of the Act, as amended by the Statutes of Ontario, 1996, chapter 1, Schedule B, section 5 and 1998, chapter 5, section 10, is further amended by adding the following subsections:
Application of certain federal provisions
(3.2)In applying subsections 125 (2) and (3) of the Income Tax Act (Canada) to determine a corporation's business limit under paragraph 125 (1) (c) of that Act for the purposes of this section and sections 43 and 51 of this Act for a taxation year, any reference to $200,000 shall be read as a reference to the total of,
(a)$200,000 multiplied by the ratio of the number of days in the taxation year that are before January 1, 2001 to the total number of days in the taxation year;
(b)$240,000 multiplied by the ratio of the number of days in the taxation year that are after December 31, 2000 and before January 1, 2002 to the total number of days in the taxation year;
(c)$280,000 multiplied by the ratio of the number of days in the taxation year that are after December 31, 2001 and before January 1, 2003 to the total number of days in the taxation year;
(d)$320,000 multiplied by the ratio of the number of days in the taxation year that are after December 31, 2002 and before January 1, 2004 to the total number of days in the taxation year;
(e)$360,000 multiplied by the ratio of the number of days in the taxation year that are after December 31, 2003 and before January 1, 2005 to the total number of days in the taxation year; and
(f)$400,000 multiplied by the ratio of the number of days in the taxation year that are after December 31, 2004 to the total number of days in the taxation year.
. . . . .
Application provision, 2000 Budget
(6)Clauses (1.1) (d) to (h) and subsections (1.4), (2) and (3.2), as they are enacted, re-enacted or amended, as the case may be, by the Taxpayer Dividend Act, 2000, apply with respect to taxation years ending after May 1, 2000.
5.(1)Clause 41.1 (1) (b) of the Act, as re-enacted by the Statutes of Ontario, 1994, chapter 14, section 15, is repealed and the following substituted:
(b)the amount calculated using the formula,
A B C / D
in which, "
A"is the specified rate of the corporation for the taxation year, as determined under subsection (3), "
B"is the amount, if any, by which "X" plus "Y" exceeds "Z", where "X" is the taxable income of the corporation for the taxation year, "Y" is the taxable income of each corporation ("associated corporation") with which the corporation was associated at any time during the taxation year, for the last taxation year of the associated corporation that ended on or before the last day of the taxation year of the corporation, and "Z" is the total of the amounts described in clauses 41 (3.2) (a) to (f), "
C"is the amount determined by the corporation for the taxation year under subsection 41 (2), and "
D"is the total of the amounts described in clauses 41 (3.2) (a) to (f).
(2)Subsection 41.1 (3) of the Act, as re-enacted by the Statutes of Ontario, 1998, chapter 5, section 11, is repealed and the following substituted:
Specified rate
(3)For the purposes of this section, the specified rate of a corporation for a taxation year ending after May 4, 1998 is the total of,
(a)4 per cent multiplied by the ratio of the number of days in the taxation year that are after April 30, 1992 and before May 5, 1998 to the total number of days in the taxation year;
(b)4.33 per cent multiplied by the ratio of the number of days in the taxation year that are after May 4, 1998 and before January 1, 1999 to the total number of days in the taxation year;
(c)4.67 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 1998 and before January 1, 2000 to the total number of days in the taxation year;
(d)5 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 1999 and before January 1, 2002 to the total number of days in the taxation year;
(e)5.333 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2001 and before January 1, 2003 to the total number of days in the taxation year;
(f)5.667 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2002 and before January 1, 2004 to the total number of days in the taxation year;
(g)6 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2003 and before January 1, 2005 to the total number of days in the taxation year; and
(h)6.667 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2004 to the total number of days in the taxation year.
(3)Section 41.1 of the Act, as enacted by the Statutes of Ontario, 1992, chapter 3, section 9 and amended by 1994, chapter 14, section 15 and 1998, chapter 5, section 11, is further amended by adding the following subsection:
Application provision, 2000 Budget
(7)Clause (1) (b) and subsection (3), as they are re-enacted by the Taxpayer Dividend Act, 2000, apply with respect to taxation years ending after May 1, 2000.
6.(1)Clause 43 (4) (b) of the Act, as re-enacted by the Statutes of Ontario, 1998, chapter 5, section 12, is repealed and the following substituted:
(b)the amount that is the total of each of the amounts calculated using the following formulas, for which the variables are defined in subsection (5):
1.B/C D/Z A/0.06
2.B/C E/Z A/0.065
3.B/C F/Z A/0.07
4.B/C G/Z A/0.075
5.B/C H/Z A/0.08
6.B/C I/Z A/0.085
7.B/C J/Z A/0.09
8.B/C K/Z A/0.10
(2)Section 43 of the Act, as amended by the Statutes of Ontario, 1992, chapter 3, section 10, 1994, chapter 14, section 16 and 1998, chapter 5, section 12, is further amended by adding the following subsections:
Same
(5)For the purposes of clause (4) (b), "
A"is the amount, if any, of the surtax determined under section 41.1 for the taxation year, "
B"is the amount, if any, determined under clause (1) (b) for the taxation year, "
C"is the amount, if any, determined under clause (1) (a) for the taxation year, "
D"is the number of days in the taxation year that are after April 30, 1992 and before May 5, 1998, "
E"is the number of days in the taxation year that are after May 4, 1998 and before January 1, 1999, "
F"is the number of days in the taxation year that are after December 31, 1998 and before January 1, 2000, "
G"is the number of days in the taxation year that are after December 31, 1999 and before January 1, 2002, "
H"is the number of days in the taxation year that are after December 31, 2001 and before January 1, 2003, "
I"is the number of days in the taxation year that are after December 31, 2002 and before January 1, 2004, "
J"is the number of days in the taxation year that are after December 31, 2003 and before January 1, 2005, "
K"is the number of days in the taxation year that are after December 31, 2004, and "
Z"is the number of days in the taxation year.
Application provision, 2000 Budget
(6)Clause (4) (b) and subsection (5), as they are enacted or re-enacted, as the case may be, by the Taxpayer Dividend Act, 2000, apply with respect to taxation years ending after May 1, 2000.
7.(1)Paragraph 1 of subsection 48 (5) of the Act, as enacted by the Statutes of Ontario, 1996, chapter 29, section 53, is repealed and the following substituted:
1.The percentage referred to in paragraphs (a) and (b) in the calculation of the amount designated as "A" in the formula in the definition shall be read as the percentage that is the specified basic rate of the corporation, as determined under subsection 38 (2) of this Act, for the taxation year for which the corporation's refundable capital gains tax on hand is being determined.
(2)Section 48 of the Act, as amended by the Statutes of Ontario, 1994, chapter 14, section 19, 1996, chapter 29, section 53 and 1998, chapter 34, section 46, is further amended by adding the following subsection:
Application provision, 2000 Budget
(7)Paragraph 1 of subsection (5), as it is re-enacted by the Taxpayer Dividend Act, 2000, applies with respect to taxation years ending after May 1, 2000.
8.(1)Subsection 51 (4) of the Act, as amended by the Statutes of Ontario, 1992, chapter 3, section 11 and 1997, chapter 43, Schedule A, section 25, is repealed and the following substituted:
Additional deduction
(4)There may be deducted from the tax otherwise payable under this Part for a taxation year by a corporation that was a credit union throughout the taxation year the amount, if any, calculated using the formula,
A ( B - C )
in which, "
A"is the designated rate calculated under subsection (4.1) of the corporation for the taxation year, "
B"is the lesser of,
(a)the corporation's taxable income for the taxation year, and
(b)the amount, if any, by which 4/3 of the corporation's maximum cumulative reserve at the end of the taxation year exceeds the corporation's preferred-rate amount at the end of its preceding taxation year, and "
C"is the corporation's adjusted Ontario small business income for the taxation year.
Designated rate
(4.1)The designated rate of a corporation for a taxation year is the total of,
(a)5.5 per cent multiplied by the ratio of the number of days in the taxation year before May 2, 2000 to the total number of days in the taxation year;
(b)7.5 per cent multiplied by the ratio of the number of days in the taxation year after May 1, 2000 and before January 1, 2002 to the total number of days in the taxation year;
(c)8 per cent multiplied by the ratio of the number of days in the taxation year after December 31, 2001 and before January 1, 2003 to the total number of days in the taxation year;
(d)8.5 per cent multiplied by the ratio of the number of days in the taxation year after December 31, 2002 and before January 1, 2004 to the total number of days in the taxation year;
(e)9 per cent multiplied by the ratio of the number of days in the taxation year after December 31, 2003 and before January 1, 2005 to the total number of days in the taxation year; and
(f)10 per cent multiplied by the ratio of the number of days in the taxation year after December 31, 2004 to the total number of days in the taxation year.
(2)Section 51 of the Act, as amended by the Statutes of Ontario, 1992, chapter 3, section 11 and 1997, chapter 43, Schedule A, section 25, is further amended by adding the following subsection:
Application provision, 2000 Budget
(6)Subsection (4), as it is re-enacted by the Taxpayer Dividend Act, 2000, applies with respect to taxation years ending after May 1, 2000.
9.(1)Sub-subclause 78 (2) (b) (i) (B) of the Act is repealed and the following substituted:
(B)its taxable income for the taxation year immediately before that taxation year did not exceed the total of the amounts described in clauses 41 (3.2) (a) to (f), or
. . . . .
(2)Subsection 78 (3) of the Act is repealed and the following substituted:
Same
(3)For the purposes of sub-subclause (2) (b) (i) (B), if the immediately preceding taxation year is less than 51 weeks long, the total of the amounts described in clauses 41 (3.2) (a) to (f) shall be multiplied by the ratio of the number of days in the immediately preceding tax year to 365.
(3)Section 78 of the Act, as amended by the Statutes of Ontario, 1994, chapter 14, section 36, 1996, chapter 1, Schedule B, section 11, 1996, chapter 24, section 29, 1996, chapter 29, section 59, 1997, chapter 43, Schedule A, section 45, 1998, chapter 5, section 22 and 1998, chapter 34, section 53, is further amended by adding the following subsection:
Application provision, 2000 Budget
(12)Sub-subclause (2) (b) (i) (B) and subsection (3), as they are re-enacted by the Taxpayer Dividend Act, 2000, apply with respect to taxation years ending after May 1, 2000.
Commencement
10.(1)Subject to subsection (2), this Part comes into force on the day this Act receives Royal Assent.
Same
(2)Sections 1 to 9 shall be deemed to have come into force on May 2, 2000.
Part II
Income Tax Act
11.Subsection 1 (1) of the Income Tax Act, as amended by the Statutes of Ontario, 1993, chapter 29, section 1, 1998, chapter 34, section 65 and 1999, chapter 9, section 115, is further amended by adding the following definitions: "
highest tax rate" means, for a taxation year, the highest tax rate as defined in subsection 4 (1) for the year; ("taux d'imposition le plus lev") "
lowest tax rate" means, for a taxation year, the lowest tax rate as defined in subsection 4 (1) for the year. ("taux d'imposition le moins lev")
12.(1)Subsection 3 (1) of the Act, as re-enacted by the Statutes of Ontario, 1992, chapter 25, section 1 and amended by 1993, chapter 29, section 3, 1996, chapter 1, Schedule C, section 3, 1996, chapter 18, section 1, 1997, chapter 10, section 1, 1998, chapter 5, section 1 and 1999, chapter 9, section 116, is further amended by striking out the portion before paragraph 1 and substituting the following:
Surtax
(1)Every individual shall pay an additional tax to be determined as follows in respect of the individual:
. . . . .
(2)Paragraph 8 of subsection 3 (1) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 116, is repealed and the following substituted:
8.For the 2000 taxation year, the additional tax equals 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 $3,561, and
ii.36 per cent of the amount, if any, by which the gross tax amount of the individual for the taxation year exceeds $4,468.
9.For the 2001 taxation year, the additional tax equals 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 $3,466, and
ii.36 per cent of the amount, if any, by which the gross tax amount of the individual for the taxation year exceeds $4,373.
13.(1)Subsection 4 (1) of the Act, as amended by the Statutes of Ontario, 1996, chapter 1, Schedule C, section 4, 1996, chapter 24, section 12 and 1999, chapter 9, section 117, is further amended by adding the following definitions: "
federal refundable capital gains tax on hand" means, in respect of a mutual fund trust, the trust's refundable capital gains tax on hand determined under section 132 of the Federal Act as of the same date that the determination is made for the purposes of this section; ("impt fdral en main remboursable au titre des gains en capital") "
first threshold" means,
(a)$30,004 for taxation years ending after December 31, 1999 and before January 1, 2001, and
(b)$30,004, adjusted in the prescribed manner, for taxation years ending after December 31, 2000; ("premier seuil") "
highest tax rate" means, for a taxation year, 11.16 per cent; ("taux d'imposition le plus lev") "
lowest tax rate" means,
(a)6.37 per cent for taxation years ending after December 31, 1999 and before January 1, 2001, and
(b)6.2 per cent for taxation years ending after December 31, 2000; ("taux d'imposition le moins lev") "
middle tax rate" means,
(a)9.62 per cent for taxation years ending after December 31, 1999 and before January 1, 2001, and
(b)9.24 per cent for taxation years ending after December 31, 2000; ("taux d'imposition moyen") "
Ontario allocation factor" means, in respect of an individual for a taxation year, the ratio of the amount of the individual's income earned in the taxation year in Ontario to the amount of the individual's income for the year; ("coefficient de rpartition de l'Ontario") "
Ontario refundable capital gains tax on hand" means, in respect of a mutual fund trust, the amount calculated under subsection (1.1); ("impt ontarien en main remboursable au titre des gains en capital") "
second threshold" means,
(a)$60,009 for taxation years ending after December 31, 1999 and before January 1, 2001, and
(b)$60,009, adjusted in the prescribed manner, for taxation years ending after December 31, 2000. ("deuxime seuil")
(2)Section 4 of the Act, as amended by the Statutes of Ontario, 1992, chapter 25, section 2, 1996, chapter 1, Schedule C, section 4, 1996, chapter 18, section 2, 1996, chapter 24, section 12, 1997, chapter 10, section 2, 1998, chapter 5, section 2 and 1999, chapter 9, section 117, is further amended by adding the following subsection:
Ontario refundable capital gains tax on hand
(1.1)For a mutual fund trust, the amount of the Ontario refundable capital gains tax on hand at the end of a taxation year is the amount calculated using the formula,
A + B - C
in which, "
A"is the total of all amounts, each of which is an amount in respect of a particular taxation year that is either the taxation year or a prior taxation year ending after December 31, 1999 and throughout which the trust was a mutual fund trust, that is equal to the lesser of,
(a)the amount of tax that would be payable under this section by the trust for the year, calculated without reference to subsections (6) to (9.1), and
(b)the amount calculated using the formula,
T R F
in which "T" is the lesser of the trust's income for the year and the amount of its taxed capital gains for the year for the purposes of section 132 of the Federal Act, "R" is the highest tax rate for the taxation year and "F" is the trust's Ontario allocation factor for the year, "
B"is the total of all refunds to which the trust was entitled under subsection (8) for prior taxation years ending before January 1, 2000, and "
C"is the total of all refunds the trust was entitled to claim and claimed under subsection (8) for prior taxation years.
(3)Subsections 4 (2), (3) and (4) of the Act are repealed and the following substituted:
Amount of tax before 2000, individuals
(2)The amount of tax payable by an individual for a taxation year ending before January 1, 2000 is the amount determined under the applicable following paragraph:
1.If the individual resides in Ontario on the last day of the taxation year and has no income earned in the taxation year outside Ontario, the amount of tax payable by the individual for the taxation year is the amount calculated using the formula,
R T
in which, "
R"is the percentage for the year specified in subsection (5), and "
T"is the amount of the tax payable under the Federal Act for the year.
2.If the individual resides in Ontario on the last day of the taxation year and has income earned in the taxation year outside Ontario or, if the individual does not reside in Ontario on the last day of the taxation year but has income earned in the year in Ontario, the amount of tax payable by the individual for the taxation year is the amount calculated using the formula,
F R T
in which, "
F"is the individual's Ontario allocation factor for the year, "
R"is the percentage for the year specified in subsection (5), and "
T"is the amount of the tax payable under the Federal Act for the year.
Amount of tax after 1999, individuals
(3)The amount of tax payable for a taxation year ending after December 31, 1999 by an individual who resides in Ontario on the last day of the taxation year or by an individual who does not reside in Ontario on the last day of the taxation year but has income earned in the taxation year in Ontario is the amount determined under the applicable following paragraph, less the deductions permitted under this section and plus the additional taxes, if any, payable under sections 3, 4.3 and 4.4:
1.If the individual's taxable income for the year does not exceed the first threshold for the taxation year, the amount of tax payable by the individual is calculated by multiplying the individual's taxable income for the year by the lowest tax rate for the year.
2.If the individual's taxable income for the year exceeds the first threshold for the taxation year but does not exceed the second threshold for the year, the amount of tax payable by the individual is calculated using the formula,
A + B
in which, "
A"is the first threshold for the year multiplied by the lowest tax rate for the year, and "
B"is the amount calculated by subtracting the first threshold for the year from the individual's taxable income for the year, and then multiplying the resulting amount by the middle tax rate for the year.
3.If the individual's taxable income for the year exceeds the second threshold for the taxation year, the amount of tax payable by the individual is calculated using the formula,
A + C + D
in which, "
A"is the first threshold for the taxation year multiplied by the lowest tax rate for the year, "
C"is the amount calculated by subtracting the first threshold for the year from the second threshold for the year, and then multiplying the resulting amount by the middle tax rate for the year, and "
D"is the amount calculated by subtracting the second threshold for the year from the individual's taxable income for the year, and then multiplying the resulting amount by the highest tax rate for the year.
4.Despite paragraphs 1, 2 and 3, the amount of tax payable for the year by a trust to which subsection 122 (1) of the Federal Act applies is calculated by multiplying the trust's taxable income for the year by the highest tax rate for the year.
Non-refundable tax credits
(3.1)In determining the amount of tax payable by an individual for a taxation year ending after December 31, 1999, the individual may claim the same deductions, applied in the same order, to which the individual is entitled for the year under sections 118 to 118.91 of the Federal Act. However, for the purposes of this Act, the amount of those deductions shall be adjusted to the amount, if any, that would be determined under those sections if the following rules applied:
1.References to the "appropriate percentage" and to the "highest percentage" in those sections of the Federal Act shall be read as references to the lowest tax rate and the highest tax rate, respectively.
2.A trust shall be deemed not to be entitled to deduct any amount under section 118 of the Federal Act.
3.An individual referred to in clause 2 (b) of this Act shall be deemed not to be entitled to deduct an amount under subsection 118 (3) of the Federal Act.
4.In determining the amount of any deduction to which the individual is entitled under section 118.2 of the Federal Act, the reference to 68 per cent in the definition of the variable "D" in the formula in subsection 118.2 (1) of the Federal Act shall be read, for the purposes of determining the amount of that deduction under this subsection, as,
i.25.5 per cent for taxation years ending after December 31, 1999 and before January 1, 2001, and
ii.24.8 per cent for taxation years ending after December 31, 2000.
Same
(3.2)Sections 118.93 to 118.95 of the Federal Act apply with necessary modifications for the purposes of this Act in determining the amount of tax payable for taxation years ending after December 31, 1999.
Minimum tax carry-forward
(3.3)In determining the amount of tax payable for a taxation year ending after December 31, 1999, an individual may deduct an amount not exceeding the lesser of,
(a)the amount of tax that would be payable under this section for the year, calculated without reference to subsections (6) to (9.1); and
(b)the amount calculated for the year using the formula,
A + B - C
in which, "
A"is the total of all amounts each of which is an amount, calculated in accordance with the prescribed rules, in respect of a prior taxation year that ends before January 1, 2000 and is one of the seven preceding taxation years, "
B"is the total of all amounts each of which is the amount added under section 4.4 to the individual's tax otherwise payable for a prior taxation year that ends after December 31, 1999 and is one of the seven preceding taxation years, and "
C"is the total of all amounts deducted under this subsection in a prior taxation year that are included in the calculation of "A" or "B".
Dividend tax credit
(3.4)In determining the amount of tax payable for a taxation year ending after December 31, 1999, an individual who is resident in Ontario on the last day of the taxation year may deduct an amount equal to the prescribed percentage of the amount, if any, that is required by paragraph 82 (1) (b) of the Federal Act to be included in the individual's income for the year or, if no percentage is prescribed, the amount equal to 5.13 per cent of the amount, if any, that is required by that paragraph of the Federal Act to be included in the individual's income for the year.
Overseas employment tax credit
(3.5)In determining the amount of tax payable for a taxation year ending after December 31, 1999, an individual who is resident in Ontario on the last day of the taxation year may deduct an amount equal to the prescribed percentage of the amount, if any, that is deductible by the individual for the year under section 122.3 of the Federal Act or, if no percentage is prescribed, the amount equal to 38.5 per cent of the amount, if any, that is deductible by the individual for the year under that section of the Federal Act.
Deduction for income earned outside Ontario
(4)There may be deducted from the amount of tax otherwise payable by an individual for a taxation year ending after December 31, 1999 an amount calculated using the formula,
T A/B
in which, "
A"is the amount of the individual's income earned in the taxation year outside Ontario, "
B"is the amount of the individual's income for the year, and "
T"is the amount of tax that would be payable under this section by the individual for the taxation year, calculated without reference to subsections (6) to (9.1).
(4)Clause 4 (5) (v) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 117, is repealed.
(5)Clause 4 (7) (b) of the Act is repealed and the following substituted:
(b)the expressions "tax payable" and "tax otherwise payable" mean the amount of tax calculated under this Act that would be payable for a taxation year,
(i)but for sections 121 and 122.3 of the Federal Act and before any deduction permitted under section 8 of this Act, if the taxation year ends before January 1, 2000, or
(ii)before any deductions permitted under subsections 4 (3.4) and (3.5) and section 8 of this Act, if the taxation year ends after December 31, 1999.
(6)Subsection 4 (8) of the Act is repealed and the following substituted:
Mutual fund trust capital gains refund
(8)A mutual fund trust that is entitled to a refund under section 132 of the Federal Act for a taxation year is entitled to receive a capital gains refund for the taxation year calculated as follows, and to receive it at the time and in the manner provided in section 132 of the Federal Act for the refund in that section:
1.If the mutual fund trust has no income earned in the taxation year outside Ontario and if the taxation year ends before January 1, 2000, the capital gains refund for the year is the amount calculated using the formula,
F P
in which, "
F"is the amount of the trust's refund for the year under section 132 of the Federal Act, and "
P"is the percentage referred to in subsection (5) that is used in computing tax payable for the year.
2.If the mutual fund trust has income earned in the taxation year outside Ontario and if the taxation year ends before January 1, 2000, the capital gains refund for the year is the amount calculated using the formula,
F R
in which, "
F"is its Ontario allocation factor for the year, and "
R"is the amount that would have been its capital gains refund for the year if all of its income had been earned in the taxation year in Ontario.
3.If the mutual fund trust's taxation year ends after December 31, 1999, the capital gains refund for the year is the lesser of,
i.its Ontario refundable capital gains tax on hand at the end of the taxation year, and
ii.the amount calculated using the formula,
F G R
in which, "
F"is its Ontario allocation factor for the year, "
G"is its capital gains redemptions for the year for the purposes of section 132 of the Federal Act, and "
R"is the prescribed percentage of the highest tax rate for the taxation year or, if no percentage is prescribed, 75 per cent of the highest tax rate for the taxation year.
(7)Subsections 4 (9.1) and (9.2) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 117, are repealed and the following substituted:
Same
(9.1)If a mutual fund trust's refund for a taxation year under section 132 of the Federal Act is equal to the amount of its federal refundable capital gains tax on hand at the end of that year, the trust is entitled to receive an additional refund for the taxation year in the amount, if any, calculated using the formula,
( A + B + C ) - ( D + E )
in which, "
A"is the total of all amounts each of which is an amount in respect of a prior taxation year ending after 1995 and before 2000 that is calculated under subsection (9.2), "
B"is the total of all amounts each of which is the amount of the trust's Ontario refundable capital gains tax on hand at the end of each taxation year ending after 1999, "
C"is the total of all amounts, each of which is the amount that would be the trust's surcharge under section 3 for a taxation year ending after 1995, if the amount of "A" or "B", whichever applies for the year, were its gross tax amount determined under subsection 3 (2) for the year, "
D"is the total of all amounts previously refunded to the trust under this subsection, and "
E"is the total of all amounts refunded to the trust under subsections (8) and (9) in respect of taxation years ending after 1995.
Same
(9.2)Each amount in respect of a prior taxation year that is to be included in "A" in subsection (9.1) is calculated using the formula,
F P X
in which, "
F"is the trust's Ontario allocation factor for the prior year, "
P"is the percentage referred to in subsection (5) used in computing the tax payable under this section by the trust for the prior year, and "
X"is the amount added to the trust's federal refundable capital gains tax on hand at the end of the prior year.
14.Section 4.1 of the Act, as enacted by the Statutes of Ontario, 1996, chapter 1, Schedule C, section 5 and amended by 1998, chapter 34, section 67, is repealed and the following substituted:
Qualifying environmental trust
4.1(1)The amount of tax payable under section 2.1 by a qualifying environmental trust for a taxation year is the sum of the amounts calculated under the following paragraphs, for which the variables are defined in subsection (2):
1.A B/T 0.155
2.A C/T 0.145
3.A D/T 0.14
Same
(2)For the purposes of subsection (1), "
A"is the trust's income for the taxation year that is subject to tax under Part XII.4 of the Federal Act, "
B"is the number of days in the taxation year that are before May 2, 2000, "
C"is the number of days in the taxation year that are after May 1, 2000 and before January 1, 2001, "
D"is the number of days in the taxation year that are after December 31, 2000, and "
T"is the total number of days in the taxation year.
15.The Act is amended by adding the following sections:
CPP, QPP adjustments
4.3(1)This section applies if an individual who is resident in Ontario on the last day of a taxation year properly excludes an amount from income for the taxation year under subsection 56 (8) of the Federal Act by reason that it relates to a prior taxation year.
Same
(2)There shall be added to the amount of tax payable by the individual for the taxation year the amount calculated using the formula,
A - B
in which, "
A"is the amount of tax that would have been payable by the individual under section 4 for the prior taxation year if the excluded amount relating to the prior year had been included in computing the individual's income for the prior year, and "
B"is the amount of tax payable by the individual under section 4 for the prior year.
Minimum tax
4.4(1)This section applies if the tax payable by an individual under Part I of the Federal Act for a taxation year is determined under section 127.5 of that Act.
Same
(2)There shall be added to the amount of tax payable by the individual for the taxation year the amount calculated using the formula,
(M - T ) R F
in which, "
F"is the individual's Ontario allocation factor for the year as defined in section 4, "
M"is the amount of the individual's minimum amount for the year as determined under section 127.51 of the Federal Act, "
R"is the percentage calculated by dividing the lowest tax rate for the taxation year by the percentage in paragraph 117 (2) (a) of the Federal Act, and "
T"is the amount that, but for section 120 of the Federal Act, would be determined under Division E of Part I of the Federal Act to be the individual's tax payable for the taxation year.
. . . . .
Tax Rebate
Definitions
7.1(1)In this section, "
benefit year" means the 1999 taxation year; ("anne vise") "
eligible individual" means an individual, other than a trust, who satisfies the prescribed conditions; ("particulier admissible") "
tax otherwise payable" means, with respect to an individual, the amount of tax that would be payable by the individual under this Act for a benefit year after the deduction, if any, permitted under subsection 4 (6) and after any tax reduction permitted under section 7, but before any deduction permitted under section 8 and any rebate available under this section. ("impt payable par ailleurs")
Deemed overpayment of tax
(2)An eligible individual shall be deemed to have made an overpayment on account of the tax payable by the individual under this Act for a benefit year if,
(a)the individual files a return of income for the benefit year within 12 months after the end of the year; and
(b)the individual satisfies the prescribed conditions.
Amount
(3)Subject to subsection (4), the amount of the deemed overpayment for a benefit year is the lesser of $200 and the tax otherwise payable by the individual for the benefit year.
Minimum deemed overpayment
(4)If the amount of the deemed overpayment determined under subsection (3) is greater than nil but less than $25, the amount of the deemed overpayment by the individual is $25 instead of the amount determined under subsection (3).
Determination by the Minister
(5)The Provincial Minister shall determine, without an application by the individual,
(a)whether the individual is an eligible individual for a benefit year;
(b)whether the individual satisfies the prescribed conditions for the purposes of subsection (2); and
(c)the amount of the individual's deemed overpayment, if any, under subsection (3) or (4).
Rebate of overpayment
(6)After determining the matters set out in subsection (5), the Provincial Minister shall do the following:
1.Send the individual a notice of entitlement setting out whether the individual is deemed under this section to have made an overpayment for a benefit year, the amount of any rebate to which the individual is entitled under this section and the basis on which the Provincial Minister has determined these matters.
2.Notify the individual of his or her right to object to the notice of entitlement.
3.Pay a rebate to the eligible individual in the amount of the individual's deemed overpayment, if any, as determined by the Provincial Minister.
Repayment
(7)If an individual receives a rebate under this section to which he or she is not entitled or receives a rebate greater than the amount to which he or she is entitled under this section, the individual shall repay the amount or the excess amount, as the case may be, to the Provincial Minister.
Recovery of amount
(8)An amount payable under subsection (7) that has not been paid to the Provincial Minister,
(a)constitutes a debt to Her Majesty in right of Ontario and may be recovered by way of deduction or set-off or it may be recovered in any court of competent jurisdiction in proceedings commenced at any time or by any other manner provided by this Act; and
(b)shall be deemed for the purposes of sections 31 to 36 to be tax payable under this Act.
Notices
(9)Any notice or other document sent by the Provincial Minister under this section may be sent by first class mail or its equivalent and shall be deemed to be received by the person to whom it is addressed four days after it is mailed or otherwise sent.
16.(1)Subsection 8.5 (1) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 34, section 74 and amended by 1999, chapter 9, section 122, is further amended by adding the following definition: "
single parent" means an individual who has one or more qualified dependants in respect of whom the individual is an eligible individual and who does not have a cohabiting spouse and does not have a common-law partner within the meaning of the Federal Act. ("chef de famille monoparentale")
(2)The definition of "A" in subsection 8.5 (5) of the Act, as re-enacted by the Statutes of Ontario, 1999, chapter 9, section 122, is repealed and the following substituted: "
A"is the amount that is the lesser of "X" and "Y", as defined in subsection (5.1).
(3)Section 8.5 of the Act, as enacted by the Statutes of Ontario, 1998, chapter 34, section 74 and amended by 1999, chapter 9, section 122, is further amended by adding the following subsection:
Same
(5.1)For the purposes of subsection (5), "
X"is the amount equal to the greater of,
(a)the amount determined by multiplying the individual's designated percentage for the month by the amount by which the individual's adjusted earned income for the base taxation year in relation to the month exceeds $5,000, and
(b)50 per cent of the individual's qualifying child care expenses for the base taxation year in relation to the month for persons who are qualified dependants of the individual for the purposes of subdivision a.1 of Division E of Part I of the Federal Act; and "
Y"is the amount obtained by multiplying the number of qualified dependants in respect of whom the individual was an eligible individual at the beginning of the month by,
(a)$1,020 if the month ends before July 1, 1999,
(b)$1,100 if the individual,
(i)is not a single parent at the beginning of the month and the month begins after June 30, 1999, or
(ii)is a single parent at the beginning of the month and the month begins after June 30, 1999 and ends before July 1, 2000, or
(c)$1,310 if the individual is a single parent at the beginning of the month and the month begins after June 30, 2000.
17.(1)Subsection 22.1 (1) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 34, section 79, is repealed and the following substituted:
Objections, deemed overpayments of tax
(1)An individual who objects to a determination made under section 7.1 or 8.5 or under subsection 10 (4) may serve on the Provincial Minister a notice of objection in the form approved by the Provincial Minister.
Same
(1.1)The notice of objection must be served within 90 days after the day on which the notice of entitlement under section 7.1 or 8.5 or subsection 10 (4), as the case may be, is sent.
(2)Subsection 22.1 (3) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 34, section 79, is repealed and the following substituted:
Issues on objection
(3)In an objection under subsection (1), the individual may raise issues about the following matters only:
1.Whether the individual is an eligible individual or has satisfied the prescribed conditions, for an objection about the individual's entitlement to a rebate under section 7.1.
2.The residence of the individual, for an objection about an Ontario child care supplement for working families under section 8.5.
3.The computation of the amount of the individual's deemed overpayment or the determination of amounts used to calculate the deemed overpayment, but not the computation of an amount determined under the Federal Act or determined by reference to an amount determined under the Federal Act.
Commencement
18.(1)Subject to subsections (2), (3) and (4), this Part comes into force on the day this Act receives Royal Assent.
Same
(2)Sections 11, 12, 13 and 15 shall be deemed to have come into force on January 1, 2000.
Same
(3)Section 14 shall be deemed to have come into force on May 2, 2000.
Same
(4)Section 16 comes into force on July 1, 2000.
Part III
Land Transfer Tax Act
19.(1)Subsection 9.2 (2) of the Land Transfer Tax Act, as re-enacted by the Statutes of Ontario, 1999, chapter 9, section 134, is repealed and the following substituted:
Refund re newly-constructed home
(2)The Minister may refund, in the manner he or she directs and without interest, tax payable under this Act by a purchaser in respect of the acquisition by the purchaser of a newly-constructed home to be used by the purchaser as his or her principal residence if the conveyance or the disposition for which the tax is payable under this Act in respect of the home occurs on or after May 8, 1996.
(2)Clause 9.2 (2.1) (b) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 134, is amended by striking out "and before April 1, 2000".
(3)Subsection 9.2 (5) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 10, section 17 and amended by 1998, chapter 5, section 30 and 1999, chapter 9, section 134, is repealed and the following substituted:
Limitation
(5)An application for a refund under this section shall be made before the expiration of 18 months after the date on which the conveyance or the disposition for which the tax is payable under this Act in respect of the home occurs.
Commencement
20.This Part shall be deemed to have come into force on April 1, 2000.
Part IV
Mining Tax Act
21.(1)Subsection 3 (1) of the Mining Tax Act is amended by striking out the portion before clause (a) and substituting the following:
Mining tax
(1)Every operator is liable for and shall pay a tax equal to the tax rate for the taxation year multiplied by the amount by which the operator's profit, as determined under subsection (5), for the taxation year from all mines in which the operator has an interest, exceeds the lesser of,
. . . . .
(2)Section 3 of the Act, as amended by the Statutes of Ontario, 1992, chapter 4, section 1, is further amended by adding the following subsections:
Tax rate
(3.1)The tax rate for an operator's taxation year is the decimal number that is the total of each of the amounts calculated using the following formulas, for which the variables are defined in subsection (3.2):
1.A/T 0.2
2.B/T 0.18
3.C/T 0.16
4.D/T 0.14
5.E/T 0.12
6.F/T 0.10
Same
(3.2)For the purposes of subsection (3.1), "
A"is the number of days in the taxation year before May 2, 2000, "
B"is the number of days in the taxation year after May 1, 2000 and before January 1, 2001, "
C"is the number of days in the taxation year after December 31, 2000 and before January 1, 2002, "
D"is the number of days in the taxation year after December 31, 2001 and before January 1, 2003, "
E"is the number of days in the taxation year after December 31, 2002 and before January 1, 2004, "
F"is the number of days in the taxation year after December 31, 2003, "
T"is the total number of days in the taxation year.
Commencement
22.(1)Subject to subsection (2), this Part comes into force on the day this Act receives Royal Assent.
Same
(2)Section 21 shall be deemed to have come into force on May 2, 2000.
Part V
Retail Sales Tax Act
23.(1)The definition of "fair value" in subsection 1 (1) of the Retail Sales Tax Act, as amended by the Statutes of Ontario, 1994, chapter 13, section 1 and 1994, chapter 17, section 135, is further amended by adding "and" at the end of clause (g), by striking out "and" at the end of clause (h) and by striking out clause (i).
(2)The definition of "purchaser" in subsection 1 (1) of the Act, as amended by the Statutes of Ontario, 1994, chapter 13, section 1, is repealed and the following substituted: "
purchaser" means a consumer or person who acquires tangible personal property anywhere, or who acquires or receives a taxable service at a sale in Ontario, for his, her or its own consumption or use, or for the consumption or use in Ontario of other persons at his, her or its expense, or on behalf of or as agent for a principal who desires to acquire the property or service for consumption or use in Ontario by the principal or by other persons at his, her or its expense, and includes,
(a)a person who, at his, her or its expense, purchases admission to a place of amusement for himself, herself or itself or for another person, and
(b)a promotional distributor to the extent that the full fair value or full price of admission of any tangible personal property, taxable service or admission to a place of amusement provided by way of promotional distribution exceeds any payment specifically made for it by the person to whom the property, service or admission is so provided. ("acheteur")
24.The Act is amended by adding the following section:
Tax on repairs, etc.
2.0.1(1)Every person who acquires tangible personal property anywhere or who acquires or receives a taxable service at a sale in Ontario for the purpose of repairing, replacing, servicing or maintaining tangible personal property ("guaranteed property") under a warranty or guarantee or under a contract that provides for the service or maintenance of the guaranteed property or provides a warranty for the guaranteed property shall pay to Her Majesty in right of Ontario a tax in respect of the consumption or use of the tangible personal property or taxable service calculated at the rate of,
(a)6 per cent of the cost of the property acquired, or service acquired or received, after May 2, 2000 and before April 1, 2001;
(b)4 per cent of the cost of the property acquired, or service acquired or received, after March 31, 2001 and before April 1, 2002;
(c)2 per cent of the cost of the property acquired, or service acquired or received, after March 31, 2002 and before April 1, 2003; and
(d)1 per cent of the cost of the property acquired, or service acquired or received, after March 31, 2003 and before April 1, 2004.
Exemption
(2)No tax is payable on taxable services that are described in clause (c) of the definition of "taxable service" in subsection 1 (1) that are provided by a person for the purpose of repairing, replacing, servicing or maintaining guaranteed property if the person is required to repair, replace, service or maintain it under a warranty or guarantee or under a contract for its service, maintenance or repair.
When tax payable
(3)The tax under subsection (1) is payable when the repair, servicing or maintenance of the guaranteed property is completed or when the replacement is delivered to the purchaser of the guaranteed property.
Tax discontinued
(4)No tax is payable under this section in respect of tangible personal property acquired, or a taxable service acquired or received, after March 31, 2004 to repair, replace, service or maintain guaranteed property.
25.Subsection 2 (16.3) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 13, section 2, is repealed and the following substituted:
Refund, reduction in tax
(16.3) Despite subsection (11), any amount of tax paid before, on or after May 3, 2000 in respect of a premium payment due after May 2, 2000 under a contract of automobile insurance that exceeds the amount of tax payable under this section in respect of that premium payment may be refunded by the vendor to the person from whom the vendor collected the tax. However, no refund shall be made more than four years after the date on which the tax to be refunded was paid.
Deduction of refund
(16.4)Any refund made under subsection (16.1), (16.2) or (16.3) may be deducted by the vendor from subsequent remittances of tax under this Act, if the vendor takes the deduction within four years from the date of the refund to the person who paid the premiums.
26.(1)Subsections 2.1 (5) and (6) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 13, section 3, are repealed and the following substituted:
Tax on automobile insurance, etc.
(5)Subsections (6), (6.1), (6.2) and (6.3) apply to every person who enters into a contract of automobile insurance with an insurer with respect to a motor vehicle that is required to be insured under the Compulsory Automobile Insurance Act.
Same, residents
(6)Despite subsection (1), every person who is a resident of Ontario or who carries on business in Ontario shall pay to Her Majesty in right of Ontario a tax at the rate of,
(a)5 per cent of every premium payment due before May 3, 2000 under a contract of automobile insurance;
(b)4 per cent of every premium payment due after May 2, 2000 and before April 1, 2001 under a contract of automobile insurance;
(c)3 per cent of every premium payment due after March 31, 2001 and before April 1, 2002 under a contract of automobile insurance;
(d)2 per cent of every premium payment due after March 31, 2002 and before April 1, 2003 under a contract of automobile insurance; and
(e)1 per cent of every premium payment due after March 31, 2003 and before April 1, 2004 under a contract of automobile insurance.
Same, non-residents
(6.1)Despite subsection (3), every person who neither is a resident of Ontario nor carries on business in Ontario and who enters into a contract described in subsection (5) with respect to a motor vehicle ordinarily situated in Ontario shall pay to Her Majesty in right of Ontario a tax at the rate of,
(a)5 per cent of every premium payment due before May 3, 2000 under a contract of automobile insurance;
(b)4 per cent of every premium payment due after May 2, 2000 and before April 1, 2001 under a contract of automobile insurance;
(c)3 per cent of every premium payment due after March 31, 2001 and before April 1, 2002 under a contract of automobile insurance;
(d)2 per cent of every premium payment due after March 31, 2002 and before April 1, 2003 under a contract of automobile insurance; and
(e)1 per cent of every premium payment due after March 31, 2003 and before April 1, 2004 under a contract of automobile insurance.
Tax discontinued
(6.2) No tax is payable under this section in respect of any premium payment due after March 31, 2004 under a contract of automobile insurance.
No refund
(6.3) A person liable to pay tax under this section on a premium payment due before May 3, 2000 under a contract of automobile insurance is not entitled to a refund of the tax paid on the premium by reason of the amendment or termination of the contract after May 2, 2000 and before the expiry of the period of coverage under that contract unless the person establishes to the satisfaction of the Minister that the amendment or termination was not for the purpose of renewing, replacing or modifying that contract for substantially similar coverage for a premium taxable at a lower rate of tax under this section.
(2)Subsection 2.1 (10) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 13, section 3 and amended by 1997, chapter 16, section 16, is further amended by adding "the Credit Unions and Caisses Populaires Act, 1994" after "Canada Pension Plan".
27.Subsection 4.2 (4) of the Act, as enacted by the Statutes of Ontario, 1993, chapter 12, section 5 and amended by 1994, chapter 13, section 6 and 1999, chapter 6, section 59, is further amended by adding the following clause:
(d.1)acquired by a school, college or university as a gift.
28.(1)Subparagraph 2 vii of subsection 7 (1) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 13, section 9, is repealed.
(2)Paragraph 13 of subsection 7 (1) of the Act is repealed and the following substituted:
13.Farm implements, farm machinery, farm equipment, farm supplies, agricultural products and repair parts, as defined by the Minister, that in his or her opinion are to be used exclusively in the business of farming by a person engaged in the business of farming.
(3)Paragraph 13.1 of subsection 7 (1) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 184, is repealed.
(4)Paragraph 14 of subsection 7 (1) of the Act is repealed and the following substituted:
14.Tangible personal property incorporated into buildings or structures that are used exclusively in the business of farming by a person engaged in the business of farming. However, the exemption conferred by this paragraph does not apply to tangible personal property incorporated into residential premises, an office, a residential garage, a road, a sidewalk, a bridge or a building or structure prescribed by the Minister as not entitled to the exemption conferred by this paragraph.
(5)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 29, section 26, 1997, chapter 10, section 32, 1997, chapter 41, section 125, 1998, chapter 5, section 45 and 1999, chapter 9, section 184, is further amended by adding the following paragraphs:
64.A gift to a school, college or university.
65.Cones, cuttings, seeds, seedlings and similar planting stock when purchased for planting in a Crown forest, as defined in the Crown Forest Sustainability Act, 1994, by a person holding a subsisting forest resource licence issued by the Ministry of Natural Resources, and such other silvicultural material as the Minister prescribes.
29.Subsection 32 (2) of the Act is repealed.
Commencement
30.(1)Subject to subsection (2), this Part comes into force on the day this Act receives Royal Assent.
Same
(2)Sections 23, 24, 25, 26, 27 and subsections 28 (1) and (5) shall be deemed to have come into force on May 3, 2000.
Same
(3)Subsection 28 (4) and section 29 come into force on a day to be named by proclamation of the Lieutenant Governor.
Part VI
Commencement and Short Title
Commencement
31.(1)Subject to subsection (2), this Act comes into force on the day it receives Royal Assent.
Same
(2)Each Part of this Act comes into force as provided in the commencement section at the end of the Part.
Same
(3)Where a Part of this Act provides that any provisions of it are to come into force on a day to be named by proclamation of the Lieutenant Governor, any such proclamation may apply to one or more of those provisions, and proclamations may be issued at different times with respect to any of those provisions.
Short title
32.The short title of this Act is the Taxpayer Dividend Act, 2000.