[37] Bill 127 Royal Assent (PDF)
Bill 127 2001
An Act to implement measures
contained in the Budget
and to implement other initiatives
of the Government
CONTENTS
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Part I Part II Part III Part IV Part V Part VI Part VII Part VIII Part IX Part X Part XI Part XII Part XIII Part XIV Part XV Part XVI Part XVII Part XVIII Part XIX Part XX Part XXI Part XXII Part XXIII Part XXIV Part XXV Part XXVI Schedule A Schedule B |
Assessment Act Business Corporations Act Commodity Futures Act Community Small Business Investment Funds Act Corporations Tax Act Education Act Electricity Act, 1998 Employer Health Tax Act Estate Administration Tax Act, 1998 Fuel Tax Act Gasoline Tax Act GO Transit Act, 2001 and Greater Toronto Services Board Act, 1998 Highway 407 East Completion Act, 2001 Income Tax Act Land Transfer Tax Act Mining Tax Act Municipal Act Municipal Property Assessment Ontario Guaranteed Annual Income Act Ontario Northland Transportation Provincial Land Tax Act Race Tracks Tax Act Retail Sales Tax Act Securities Act Tobacco Tax Act Commencement and Short title GO Transit Act, 2001 Highway 407 East Completion Act, 2001 |
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Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:
PART I
ASSESSMENT ACT
1. (1) Subsection 2 (2) of the Assessment Act, as amended by the Statutes of Ontario, 1994, chapter 36, section 1, 1997, chapter 5, section 2, 1997, chapter 29, section 2, 1997, chapter 43, Schedule G, section 18 and 2000, chapter 25, section 1, is further amended by adding the following clause:
(f) prescribing buildings or structures or portions of buildings or structures for the purposes of subsection 19.0.1 (1) and the manner of determining the assessed value of them for the purposes of that subsection.
(2) Section 2 of the Act, as amended by the Statutes of Ontario, 1994, chapter 36, section 1, 1997, chapter 5, section 2, 1997, chapter 29, section 2, 1997, chapter 43, Schedule G, section 18, 1998, chapter 3, section 1, 1998, chapter 33, section 1 and 2000, chapter 25, section 1, is further amended by adding the following subsection:
General or specific
(2.1) A regulation made under clause (2) (f) may be general or specific in its application and may apply differently to different buildings, structures or properties or to different portions of buildings, structures or properties.
(3) Section 2 of the Act, as amended by the Statutes of Ontario, 1994, chapter 36, section 1, 1997, chapter 5, section 2, 1997, chapter 29, section 2, 1997, chapter 43, Schedule G, section 18, 1998, chapter 3, section 1, 1998, chapter 33, section 1 and 2000, chapter 25, section 1, is further amended by adding the following subsection:
Scope of certain regulations
(3.3.1) A regulation to which clause (3.2) (e) applies may be general or specific in its application and may apply differently to different municipalities or different property classes.
2. (1) Subsection 19.0.1 (1) of the Act, as re-enacted by the Statutes of Ontario, 1999, chapter 9, section 12, is repealed and the following substituted:
Electricity generating and transformer stations
(1) For the purposes of this Act, the assessed value of generating station buildings or structures, transformer station buildings or structures or any buildings or structures prescribed by the Minister that are situated on land owned by a designated electricity utility or municipal electricity utility shall be determined,
(a) on the basis of $86.11 for each square metre of inside ground floor area of,
(i) each actual generating station building or structure housing the generating equipment and machinery and any auxiliary equipment and machinery,
(ii) each transformer station building or structure housing the transforming equipment and machinery and any auxiliary equipment and machinery, and
(iii) any buildings or structures or portions of buildings or structures prescribed by the Minister; or
(b) in the manner prescribed by the Minister for a building or structure or portion of a building or structure prescribed by the Minister.
(2) Subsection 19.0.1 (6) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 12, is repealed and the following substituted:
Deemed ownership
(6) For the purposes of subsection (1), a building or structure or portion of a building or structure to which subsection (1) applies shall be deemed to be owned by a designated electricity utility or a municipal electricity utility if the land is owned by the Crown or a municipality and is occupied by the designated electricity utility or the municipal electricity utility.
3. (1) Subsection 46 (1) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 31 and amended by 1997, chapter 43, Schedule G, section 18, is further amended by striking out "Ontario Court (General Division") and substituting "Superior Court of Justice".
(2) Subsection 46 (4) of the Act is amended by striking out "Ontario Court (General Division)" and substituting "Superior Court of Justice".
(3) Subsection 46 (5) of the Act is amended by striking out "Ontario Court (General Division)" and substituting "Superior Court of Justice".
(4) Subsection 46 (6) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 31, is amended by striking out "Ontario Court (General Division)" and substituting "Superior Court of Justice".
4. Section 48 of the Act is amended by striking out "Ontario Court (General Division)" and substituting "Superior Court of Justice".
Commencement
5. (1) Subject to subsection (2), this Part comes into force on the day this Act receives Royal Assent.
Same
(2) Section 2 shall be deemed to have come into force on April 1, 1999.
PART II
BUSINESS CORPORATIONS ACT
6. (1) Clause 3.3 (1) (e) of the Business Corporations Act, as enacted by the Statutes of Ontario, 2000, chapter 42, Schedule, section 2, is repealed and the following substituted:
(e) the occurrence of such other event or the existence of such other circumstance as may be prescribed.
(2) Clause 3.3 (3) (a) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, Schedule, section 2, is repealed and the following substituted:
(a) prescribing events and circumstances for the purposes of clause (1) (e);
(a.1) providing that, despite clause (1) (a), (b), (c), (d) or (e), whichever applies, a professional corporation's certificate of authorization or other authorizing document ceases to be valid and the corporation ceases to be a professional corporation because of a failure to meet the terms and conditions described in the regulation;
(a.2) prescribing terms and conditions that apply with respect to the events and circumstances referred to in clauses (1) (a), (b), (c), (d) and (e);
(a.3) prescribing exceptions to the events and circumstances referred to in clauses (1) (a), (b), (c), (d) and (e);
Commencement
7. This Part comes into force on the day this Act receives Royal Assent.
PART III
COMMODITY FUTURES ACT
8. Subsection 9 (4) of the Commodity Futures Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 30, is amended by striking out "Superior Court of Justice" and substituting "Ontario Court of Justice".
Commencement
9. This Part comes into force on the day this Act receives Royal Assent.
PART IV
COMMUNITY SMALL BUSINESS
INVESTMENT FUNDS ACT
10. (1) Subclause 14 (1) (c) (i) of the Community Small Business Investment Funds Act is repealed and the following substituted:
(i) Class A shares that are issuable to eligible investors only,
(2) Clause 14 (1) (e) of the Act, as amended by the Statutes of Ontario, 1994, chapter 17, section 84 and 2000, chapter 42, section 4, is repealed.
11. Section 14.1 of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule C, section 7 and amended by 2000, chapter 42, section 5, is repealed and the following substituted:
Disposition of Class A shares
14.1 (1) This section applies if a Class A share of a labour sponsored investment fund corporation that was issued after May 6, 1996 is redeemed, acquired or cancelled by the corporation less than eight years after the day on which the share was issued.
Tax payable
(2) Subject to subsection (3), the person who was the shareholder immediately before the redemption, acquisition or cancellation of the Class A share shall pay a tax under this Part equal to the amount calculated using the formula,
A × B
in which,
"A" is 20 per cent if the corporation issued the share as a research oriented investment fund and 15 per cent in any other case, and
"B" is the lesser of,
(a) the amount of equity capital received by the corporation on the issuance of the share, and
(b) the amount that is payable by the corporation on the redemption, acquisition or cancellation of the share.
Exception
(3) No amount is payable under subsection (2) if any of the following conditions is satisfied:
1. After the shareholder acquired the share, the shareholder became disabled and permanently unfit for work or became terminally ill.
2. Within 60 days after the day on which the share was issued to the original purchaser,
i. the shareholder asks the corporation to redeem it, and
ii. the tax credit certificate referred to in subsection 25 (5) that was issued in respect of the share is returned to the corporation.
3. The shareholder acquired the share from another person as a consequence of,
i. the death of the other person, or
ii. the death of an annuitant under a trust governing a registered retirement savings plan or registered retirement income fund that previously held the share.
4. The shareholder is a trust governing a registered retirement savings plan or registered retirement income fund and, after the shareholder acquired the share, the annuitant under the plan or fund became disabled and permanently unfit for work or became terminally ill.
5. No tax credit certificate was issued under this Act at any time in respect of the share.
Withholding and remittance of tax
(4) If tax is payable under subsection (2) as a result of the redemption, acquisition or cancellation of a Class A share, the labour sponsored investment fund corporation that redeems, acquires or cancels the share shall,
(a) withhold from the amount otherwise payable to the shareholder on the redemption, acquisition or cancellation of the share the amount of tax calculated under subsection (2); and
(b) remit to the Minister on behalf of the shareholder the amount withheld under clause (a), and do so within 30 days after the redemption, acquisition or cancellation.
Liability for failure to withhold or remit
(5) If the labour sponsored investment fund corporation fails to withhold or remit an amount under subsection (4), the corporation is liable to pay to the Minister as tax under subsection (2) on behalf of the shareholder the amount that the corporation failed to withhold or remit.
Same
(6) If the labour sponsored investment fund corporation paid an amount to the Minister under subsection (5) as tax under subsection (2) on behalf of the shareholder, the corporation is entitled to recover from the shareholder the amount remitted to the Minister but not withheld by the corporation.
Definition
(7) In subsections (3) to (6),
"shareholder" means the person who was the shareholder immediately before the redemption, acquisition or cancellation of the Class A share.
12. (1) Clause 16.1 (2) (a) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 6, is repealed.
(2) Subsection 16.1 (4) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 6, is repealed.
13. (1) The definition of "listed company" in subsection 18.1 (1) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 56, is repealed and the following substituted:
"listed company" means, in relation to a labour sponsored investment fund corporation, a business described in subsection (6); ("société cotée")
(2) The definition of "reporting issuer" in subsection 18.1 (1) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 56, is repealed.
(3) Subsections 18.1 (2), (3) and (4) of the Act, as re-enacted by the Statutes of Ontario, 1999, chapter 9, section 56, are repealed.
(4) Subsection 18.1 (5) of the Act, as re-enacted by the Statutes of Ontario, 1999, chapter 9, section 56, is repealed and the following substituted:
Limit on investment in listed companies
(5) During each calendar year, a labour sponsored investment fund corporation shall not make investments in eligible businesses that are listed companies to the extent that the cost of those investments exceeds 15 per cent of the total cost of all investments made in eligible businesses by the corporation in that calendar year.
(5) Subsections 18.1 (6) and (7) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 56, are repealed and the following substituted:
Status of listed company
(6) For the purposes of subsection (5), a business is a listed company in relation to a labour sponsored investment fund corporation if, when the corporation makes an eligible investment in the business, any of the shares of the business are listed on a stock exchange prescribed by Regulation 3200 or 3201 made under the Income Tax Act (Canada).
14. Paragraph 1 of subsection 18.5 (1) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 59, is amended by striking out "January 1, 2002" and substituting "January 1, 2003".
15. Subsection 24.1 (3) of the Act, as re-enacted by the Statutes of Ontario, 1999, chapter 9, section 62, is amended by striking out "the applicable investment deadline described in subsection (2)" in the portion before clause (a) and substituting "January 1, 2003".
16. (1) Subsection 25 (4.1) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule C, section 15 and amended by 1998, chapter 34, section 21 and 1999, chapter 9, section 63, is further amended by striking out "January 1, 2002" and substituting "January 1, 2003".
(2) Subsection 25 (4.3) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 63, is amended by striking out "January 1, 2002" and substituting "January 1, 2003".
(3) Clause 25 (4.9) (b) of the Act, as re-enacted by the Statutes of Ontario, 1999, chapter 9, section 63, is amended by striking out "January 1, 2002" and substituting "January 1, 2003".
17. Clause 26 (1) (b) of the Act, as amended by the Statutes of Ontario, 1994, chapter 17, section 89 and 1997, chapter 43, Schedule C, section 23, is repealed and the following substituted:
(b) the investment corporation fails to meet the requirements imposed by its articles;
(b.1) the investment corporation fails to comply with section 14.1;
18. (1) Subclause 28 (3) (b) (i) of the Act, as re-enacted by the Statutes of Ontario, 1999, chapter 9, section 68, is repealed.
(2) The definition of "C" in subclause 28 (3) (b) (i.1) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 68, is repealed and the following substituted:
"C" is the amount invested by the corporation during the calendar year in eligible businesses that are listed companies, and
. . . . .
(3) Clause 28 (3) (c) of the Act, as enacted by the Statutes of Ontario, 1996, chapter 29, section 14, is repealed and the following substituted:
(c) the amount of any tax paid by the corporation under this subsection, other than an amount described in subclause 28 (3) (b) (i.1), in respect of any preceding year that has not been rebated to the corporation under subsection (4).
(4) Subsection 28 (5) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 68, is repealed and the following substituted:
Definitions
(5) In this section,
"listed company" and "small business" have the same meaning as in subsection 18.1 (1).
Commencement
19. (1) Subject to subsection (2), this Part comes into force on the day this Act receives Royal Assent.
Same
(2) Subsections 13 (4) and (5) come into force on January 1, 2002.
PART V
CORPORATIONS TAX ACT
20. The definition of "farming" in clause 1 (1) (d) of the Corporations Tax Act is amended by striking out "subsection 71 (2)" and substituting "subsection 71 (1)".
21. The Act is amended by adding the following section:
Transfer pricing
5.4 The provisions of Part XVI.1 of the Income Tax Act (Canada) apply in determining an amount that would be determined for the purposes of this Act, but for this section and section 5, in respect of a corporation for a taxation year commencing after December 31, 1997, with the following exceptions:
1. The reference to a person's "filing-due date" for a taxation year in the definition of "documentation-due date" in subsection 247 (1) of the Income Tax Act (Canada) shall be read as a reference to the date on which the person is required to deliver a return under section 75 of this Act for the taxation year.
2. A reference to the Income Tax Act (Canada) in the definition of "tax benefit" in subsection 247 (1) of that Act shall be read as a reference to this Act.
3. The reference to section 245 of the Income Tax Act (Canada) in subsection 247 (2) of that Act shall be read as a reference to section 5 of this Act.
4. Subsections 76 (1), (2), (6), (8) and (9), sections 80, 81, 82, 84 and 107 and Division F of Part V of this Act apply instead of sections 152, 158, 159, 162 to 167 and Division J of Part I of the Income Tax Act (Canada).
5. Subsection 247 (3) of the Income Tax Act (Canada) does not apply.
22. (1) Subsection 11 (8.1) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 10, section 1 and amended by 2001, chapter 8, section 19, is further amended by striking out "and" at the end of clause (b) and by repealing (c) and substituting the following:
(c) 5/14 multiplied by the ratio of the number of days in the taxation year that are after December 31, 2000 and before October 1, 2001 to the total number of days in the taxation year; and
(d) 5/12.5 multiplied by the ratio of the number of days in the taxation year that are after September 30, 2001 and before January 1, 2003 to the total number of days in the taxation year.
(2) Effective January 1, 2002, the English version of clause 11 (8.1) (c) of the Act, as re-enacted by subsection (1) of this section, is amended by striking out "and" at the end.
(3) Clauses 11 (8.1) (c) and (d) of the Act, as set out in the Statutes of Ontario, 2001, chapter 8, subsection 19 (1) are repealed.
(4) Subsection 11 (28) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 10, section 1, is repealed.
(5) Subsection 11 (29) of the Act, as enacted by the Statutes of Ontario, 2001, chapter 8, section 19, is repealed.
23. The Act is amended by adding the following section:
Rules, Federal investment tax credit for scientific research and experimental development
Definitions
11.2 (1) In this section,
"Federal Act" means the Income Tax Act (Canada); ("loi fédérale")
"investment tax credit amount" means, in respect of a corporation for a taxation year, an amount deducted by the corporation for a prior taxation year under subsection 127 (5) or (6) of the Federal Act; ("crédit d'impôt à l'investissement")
"Ontario allocation factor" has the meaning given to that expression by subsection 12 (1); ("coefficient de répartition de l'Ontario")
"qualified Ontario SR & ED expenditure" means,
(a) a qualified expenditure within the meaning of subsection 12 (1) that is made or incurred by a corporation in a specified taxation year or in the taxation year immediately preceding the first specified taxation year of the corporation, or
(b) an expenditure made or incurred by a partnership in a fiscal period that ends in a specified taxation year of a corporation if,
(i) the corporation is a member of the partnership at any time in the specified taxation year, and
(ii) the expenditure would be a qualified expenditure within the meaning of subsection 12 (1) if it were made by a corporation; ("dépense admissible de recherche et de développement en Ontario")
"specified taxation year" means, in respect of a corporation, a taxation year of the corporation that commences after February 29, 2000. ("année d'imposition déterminée")
Exception, specified taxation year
(2) Despite the definition of "specified taxation year" in subsection (1), a corporation's first specified taxation year for the purposes of this section is its first taxation year commencing after December 31, 2000, if its first taxation year that commences after February 29, 2000 ends before January 1, 2001.
Rule, deduction under s. 37 (1) of the Federal Act
(3) If a corporation includes, under paragraph 37 (1) (e) of the Federal Act, an investment tax credit amount in determining the amount otherwise deductible under this Act for a specified taxation year, the corporation may increase the amount of its deduction for the specified taxation year under subsection 37 (1) of the Federal Act, as it applies for the purposes of this Act, by the amount calculated using the formula,
A/B
in which,
"A" is the part of that investment tax credit amount that can reasonably be considered to relate to qualified Ontario SR & ED expenditures made or incurred by the corporation, and
"B" is the Ontario allocation factor of the corporation for the year.
Rule, capital cost
(4) If a corporation includes an investment tax credit amount in a specified taxation year under paragraph 13 (7.1) (e) of the Federal Act in determining the capital cost to the corporation of depreciable property for the purposes of this Act, the corporation may add, in determining the capital cost of the property, despite subsection 13 (7.1) of the Federal Act as it applies for the purposes of this Act, the amount calculated using the formula,
C/B
in which,
"C" is the part of that investment tax credit amount that can reasonably be considered to relate to qualified Ontario SR & ED expenditures made or incurred by the corporation, and
"B" is the Ontario allocation factor of the corporation for the year.
Rule, undepreciated capital cost
(5) If a corporation includes an investment tax credit amount in a specified taxation year in determining the amount of the variable "I" in the formula in the definition of "undepreciated capital cost" in subsection 13 (21) of the Federal Act in calculating the amount of the undepreciated capital cost to the corporation of depreciable property, the corporation may add, in determining the amount of the undepreciated capital cost for the purposes of this Act, the amount calculated using the formula,
D/B
in which,
"D" is the part of that investment tax credit amount that can reasonably be considered to relate to qualified Ontario SR & ED expenditures made or incurred by the corporation, and
"B" is the Ontario allocation factor of the corporation for the year.
Rule, adjusted cost base of partnership
interest
(6) If a corporation includes an investment tax credit amount in a specified taxation year under subparagraph 53 (2) (c) (vi) of the Federal Act in computing the adjusted cost base to the corporation of property that is an interest in a partnership, the corporation may add, in determining the adjusted cost base of the property for the purposes of this Act, the amount calculated using the formula,
E/B
in which,
"E" is the part of that investment tax credit amount that can reasonably be considered to relate to qualified Ontario SR & ED expenditures made or incurred by the partnership, and
"B" is the Ontario allocation factor of the corporation for the year.
Same
(7) If a corporation includes an investment tax credit amount in a specified taxation year under subparagraph 53 (1) (e) (xiii) of the Federal Act in computing the adjusted cost base to the corporation of property that is an interest in a partnership, the corporation shall deduct, in determining the adjusted cost base of the property for the purposes of this Act, the amount calculated using the formula,
F/B
in which,
"F" is the part of that investment tax credit amount that can reasonably be considered to relate to qualified Ontario SR & ED expenditures made or incurred by the partnership, and
"B" is the Ontario allocation factor of the corporation for the year.
Rule, inclusion in income
(8) If a corporation includes an investment tax credit amount under paragraph 37 (1) (c.2) of the Federal Act in determining the amount of a deduction under subsection 37 (1) of that Act for a specified taxation year and the amount can reasonably be considered to relate to qualified Ontario SR & ED expenditures to acquire a property that were made or incurred by the corporation and were previously subject to the application of subsection (4) because the expenditures are related to an amount included under paragraph 37 (1) (b) of that Act in a deduction under subsection 37 (1) of that Act for a prior taxation year, the corporation shall include, in computing its income for the purposes of this Act for the specified taxation year, an amount calculated using the formula,
G/B
in which,
"G" is the part of that investment tax credit amount that can reasonably be considered to relate to qualified Ontario SR & ED expenditures made or incurred by the corporation, and
"B" is the Ontario allocation factor of the corporation for the year in which the property was last acquired by the corporation.
Exception
(9) If the corporation is not subject to any of the rules set out in subsections (3) to (7) for a specified taxation year and includes an investment tax credit amount in computing its income for the purposes of this Act for the year, the corporation may deduct, in computing its income for the year, the amount calculated using the formula,
G/B
in which,
"G" is the part of that investment tax credit amount that can reasonably be considered to relate to qualified Ontario SR & ED expenditures made or incurred by the corporation, and
"B" is the Ontario allocation factor of the corporation for the year.
Partnerships
(10) If a corporation is a member of a partnership in a specified taxation year and adds an amount under subsection 127 (8) of the Federal Act in computing the amount the corporation may deduct under subsection 127 (5) or (6) of the Federal Act for the year, the corporation may deduct, in computing its income for the year, the amount calculated using the formula,
H/B
in which,
"H" is the portion of the amount, if any, included under subsection 127 (8) of the Federal Act in computing the amount of the deduction under subsection 127 (5) or (6) of the Federal Act that can reasonably be considered to relate to qualified Ontario SR & ED expenditures made or incurred by the partnership, and
"B" is the Ontario allocation factor of the corporation for the year.
Same
(11) If a partnership includes an amount under paragraph 37 (1) (c.3) of the Federal Act in determining the amount of a deduction under subsection 37 (1) of that Act for a fiscal period, and the amount is in respect of qualified Ontario SR & ED expenditures made or incurred by the partnership to acquire a property, a corporation that is a member of the partnership and that previously claimed a deduction under subsection (10) in respect of the expenditures shall include in computing its income for the specified taxation year in which the partnership's fiscal period ends, an amount calculated using the formula,
J/B
in which,
"J" is the corporation's proportionate share, based on its share of the income or loss of the partnership, of the amount included under paragraph 37 (1) (c.3) of the Federal Act by the partnership that can reasonably be considered to relate to qualified Ontario SR & ED expenditures made or incurred by the partnership in respect of which the corporation claimed the deduction under subsection (10), and
"B" is the Ontario allocation factor of the corporation for the specified taxation year in which the fiscal period of the partnership ends during which the property was last acquired by the partnership.
Same
(12) If a partnership includes an amount previously allocated under subsection 127 (8) of the Federal Act in computing its income for the purposes of this Act for a fiscal period and the amount can reasonably be considered to relate to qualified Ontario SR & ED expenditures made or incurred by the partnership, a corporation that is a member of the partnership shall, if subsection (10) does not apply, deduct an amount in computing its income for the specified taxation year in which the partnership's fiscal period ends that is calculated using the formula,
K/B
in which,
"K" is the corporation's proportionate share, based on its share of the income or loss of the partnership, of the amount allocated under subsection 127 (8) of the Federal Act that is included in the partnership's income for the purposes of this Act that can reasonably be considered to relate to qualified Ontario SR & ED expenditures made or incurred by the partnership, and
"B" is the Ontario allocation factor of the corporation for the specified taxation year.
Same
(13) Subsection 127 (13) of the Federal Act does not apply for the purposes of this section in respect of qualified Ontario SR & ED expenditures made or incurred by a partnership.
Prescribed rules
(14) The corporation is subject to such rules as may be prescribed by the regulations instead of or in addition to the rules set out in subsections (3) to (12) for the purposes of determining the amount of its income for a specified taxation year or the amount of the capital cost, undepreciated capital cost or adjusted cost basis of its property.
24. Section 12 of the Act, as amended by the Statutes of Ontario, 1992, chapter 3, section 3, 1996, chapter 29, section 38, 1997, chapter 43, Schedule A, section 7, 1998, chapter 5, section 7, 1998, chapter 34, section 29, 1999, chapter 9, section 76 and 2000, chapter 42, section 11, is further amended by adding the following subsection:
Exception, specified taxation year
(2.1) Despite subsection (2), no amount is deductible under this section by a corporation for a taxation year that is a specified taxation year of the corporation within the meaning of section 11.2.
25. (1) Subsection 29 (5) of the Act is repealed and the following substituted:
"Minister" deemed to be Minister of National Revenue
(5) The references to "Minister" in the following provisions of the Income Tax Act (Canada) are deemed to be references to the Minister of National Revenue for Canada for the purposes of this Act:
1. Subsection 85 (7.1).
2. The definition of "public corporation" in subsection 89 (1).
3. Subsection 89 (3).
(2) Subsection 29 (6) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule A, section 10, is amended by striking out "where clause 29.1 (4) (a) or (b) or subsection 29.1 (5) applies" and substituting "where subsection 29.1 (4) or (5) applies".
(3) Section 29 of the Act, as amended by Statutes of Ontario, 1997, chapter 43, Schedule A, section 10, is further amended by adding the following subsection:
Application of Income Tax Act (Canada), s. 86.1 (5)
(7) In the application of subsection 86.1 (5) of the Income Tax Act (Canada), the reference to "subsections 152 (4) to (5)" is deemed to be a reference to subsection 80 (11) of this Act.
26. (1) Subsection 29.1 (3) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule A, section 11, is repealed and the following substituted:
Exception to subs. (2)
(3) Paragraph 2 of subsection (2) does not apply if,
(a) the property in respect of which an election is made is property described in subclause 5.1 (8) (a) (iii) or prescribed by the regulations and the conditions described in clauses (7) (a) and (b) would not be met if subsection (7) applied in respect of the property; or
(b) the rules or conditions prescribed by the regulations have been satisfied and the conditions described in clauses (7) (a) and (b) would not be met if subsection (7) applied in respect of the property.
(2) Subclause 29.1 (7) (a) (ii) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 34, section 33, is amended by striking out "at least 10 per cent less" and substituting "at least 10 percentage points less".
(3) Section 29.1 of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule A, section 11 and amended by 1998, chapter 34, section 33, is further amended by adding the following subsection:
Deemed fair market value of the consideration
(8) The amount agreed upon by two corporations in an election in respect of the disposition of property to which subsection (3), (4) or (5) applies is deemed to be the fair market value of the consideration received by the transferor on the disposition, if the amount agreed upon in the election is more than the fair market value, as determined at the time of the disposition, of the consideration or the portion of the consideration received by the transferor that is not in the form of shares or a right to receive shares in the capital stock of the transferee.
27. Subsection 31 (8) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule A, section 12, is amended by striking out "clause 31.1 (4) (a) or (b) or subsection 31.1 (5)" and substituting "subsection 31.1 (4) or (5)".
28. (1) Subsection 31.1 (3) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule A, section 13, is repealed and the following substituted:
Exception to subs. (2)
(3) Paragraph 2 of subsection (2) does not apply if,
(a) the property in respect of which an election is made is property described in subclause 5.1 (8) (a) (iii) or prescribed in the regulations and the conditions described in clauses (7) (a) and (b) would not be met if subsection (7) applied on the disposition of the property; or
(b) the rules or conditions prescribed by the regulations have been satisfied and the conditions described in clauses (7) (a) and (b) would not be met if subsection (7) applied on the disposition of the property.
(2) Subclause 31.1 (7) (a) (ii) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 34, section 35, is amended by striking out "at least 10 per cent less" and substituting "at least 10 percentage points less".
(3) Section 31.1 of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule A, section 13 and amended by 1998, chapter 34, section 35, is further amended by adding the following subsection:
Deemed fair market value of the consideration
(8) The amount agreed upon by a corporation and the members of a partnership in an election in respect of the disposition of property to which subsection (3), (4) or (5) applies is deemed to be the fair market value of the consideration received by the transferor on the disposition of the property if the amount agreed upon in the election is more than the fair market value, as determined at the time of the disposition, of the consideration or the portion of the consideration received by the transferor that is not in the form of shares or a right to receive shares in the capital stock of a corporation.
29. (1) Subsection 34 (7) of the Act, as re-enacted by the Statutes of Ontario, 1996, chapter 29, section 45, is amended by striking out "section 110.5" wherever it appears and substituting in each case "section 110.5 or subparagraph 115 (1) (a) (vii)".
(2) Subclause 34 (10.3) (a) (ii) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule A, section 15, is repealed and the following substituted:
(ii) disposes of the property within 36 months after the taxation year to which the designation relates; or
. . . . .
30. Section 37 of the Act, as amended by the Statutes of Ontario, 1996, chapter 29, section 46, is further amended by adding the following subsections:
Designated investment services to qualified non-resident
(6) For the purposes of this Division and subsection 2 (2), a qualified non-resident is not considered to have a permanent establishment in Ontario at any particular time in a taxation year ending after December 31, 1998 solely because a Canadian service provider provides designated investment services to the qualified non-resident through a permanent establishment of the Canadian service provider in Ontario, if the conditions described in paragraph 115.2 (2) (b) of the Income Tax Act (Canada) are met.
Interpretation
(7) For the purposes of subsection (6), "Canadian service provider", "designated investment services" and "qualified non-resident" have the meanings assigned by subsection 115.2 (1) of the Income Tax Act (Canada).
31. (1) Subsection 38 (2) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 10, section 2 and amended by 2001, chapter 8, section 20, is further amended by striking out "and" at the end of clause (b) and by repealing clause (c) and substituting the following:
(c) 14 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2000 and before October 1, 2001 to the total number of days in the taxation year; and
(d) 12.5 per cent multiplied by the ratio of the number of days in the taxation year that are after September 30, 2001 and before January 1, 2003 to the total number of days in the taxation year.
(2) Effective January 1, 2002, the English version of clause 38 (2) (c) of the Act, as re-enacted by subsection (1) of this section, is amended by striking out "and" at the end.
(3) Clauses 38 (2) (c) and (d) of the Act, as set out in the Statutes of Ontario, 2001, chapter 8, subsection 20 (1), are repealed.
(4) Subsection 38 (3) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 10, section 2, is repealed.
(5) Subsection 38 (4) of the Act, as enacted by the Statutes of Ontario, 2001, chapter 8, section 20, is repealed.
32. (1) Clause 41 (1.1) (d) of the Act, as re-enacted by the Statutes of Ontario, 2000, chapter 10, section 4, is repealed and the following substituted:
(d) 7.5 per cent, in respect of a taxation year that ends after December 31, 1999 and before October 1, 2001;
(2) Clause 41 (1.1) (e) of the Act, as re-enacted by the Statutes of Ontario, 2000, chapter 10, section 4, is repealed and the following substituted:
(e) 6.5 per cent, in respect of a taxation year that ends after September 30, 2001 and before January 1, 2003;
(3) Clause 41 (1.1) (e) of the Act, as set out in the Statutes of Ontario, 2001, chapter 8, subsection 21 (1), is repealed.
(4) Subsection 41 (1.4) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 5, section 10 and amended by 2000, chapter 10, section 4, is repealed and the following substituted:
Same, 2001 and later
(1.4) Despite clauses (1.1) (d) to (h), if the taxation year begins on or before the particular September 30 or December 31 indicated in clause (d), (e), (f), (g) or (h), the change in the percentage from the percentage set out in the preceding clause to the percentage set out in the applicable clause must be prorated according to the number of days in the taxation year that are after the particular September 30 or December 31, as the case may be.
(5) Subsection 41 (1.4) of the Act, as set out in the Statutes of Ontario, 2001, chapter 8, subsection 21 (2), is repealed.
(6) Clauses 41 (3.2) (b) and (c) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 10, section 4, are repealed and the following substituted:
(b) $240,000 multiplied by the ratio of the number of days in the year that are after December 31, 2000 and before October 1, 2001 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 September 30, 2001 and before January 1, 2003 to the total number of days in the taxation year;
(7) Subsection 41 (6) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 10, section 4, is repealed.
(8) Subsection 41 (7) of the Act, as enacted by the Statutes of Ontario, 2001, chapter 8, section 21, is repealed.
33. (1) Clause 41.1 (3) (d) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 10, section 5, is repealed and the following substituted:
(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 October 1, 2001 to the total number of days in the taxation year;
(2) Clause 41.1 (3) (e) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 10, section 5, is repealed and the following substituted:
(e) 4.333 per cent multiplied by the ratio of the number of days in the taxation year that are after September 30, 2001 and before January 1, 2003 to the total number of days in the taxation year;
(3) Clause 41.1 (3) (e) of the Act, as set out in the Statutes of Ontario, 2001, chapter 8, subsection 22 (1), is repealed.
(4) Subsection 41.1 (7) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 10, section 5, is repealed.
(5) Subsection 41.1 (8) of the Act, as enacted by the Statutes of Ontario, 2001, chapter 8, section 22, is repealed.
34. (1) Subsection 43 (1.2) of the Act, as enacted by the Statutes of Ontario, 2001, chapter 8, section 23, is repealed and the following substituted:
Transition, 2001 Budget
(1.2) The amount that may be deducted under subsection (1) by a corporation for a taxation year ending after September 30, 2001 may not exceed the amount that would be determined under subsection (1) for the taxation year if the reference in that subsection to "2 per cent" were read as the total of,
(a) 2 per cent multiplied by the ratio of the number of days in the taxation year that are before October 1, 2001 to the total number of days in the taxation year;
(b) 1.5 per cent multiplied by the ratio of the number of days in the taxation year that are after September 30, 2001 and before January 1, 2003 to the total number of days in the taxation year;
(c) 1 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;
(d) 0.5 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
(e) zero 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.
(2) Section 43 of the Act, as amended by the Statutes of Ontario, 1992, chapter 3, section 10, 1994, chapter 14, section 16, 1998, chapter 5, section 12, 2000, chapter 10, section 6, 2000, chapter 42, section 15 and 2001, chapter 8, section 23, is further amended by adding the following subsection:
Transition, other steam producers
(1.3) Despite subsection (1), the amount that may be deducted under this section by a corporation that produces steam for sale, other than a corporation referred to in subsection (1.1), for a taxation year ending after December 31, 1999 on its eligible Canadian profits from the production of steam for sale is the amount that would be determined under subsection (1) if the reference in that subsection to "2 per cent" were read as the total of,
(a) 1.0 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, 2001 to the total number of days in the taxation year;
(b) 1.5 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2000 and before January 1, 2003 to the total number of days in the taxation year;
(c) 1 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;
(d) 0.5 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
(e) zero 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) Subsection 43 (5) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 10, section 6, is amended by striking out the definitions of "G" and "H" and substituting the following:
"G" is the number of days in the taxation year that are after December 31, 1999 and before October 1, 2001,
"H" is the number of days in the taxation year that are after September 30, 2001 and before January 1, 2003,
(4) Subsection 43 (6) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 10, section 6, is repealed.
(5) Subsection 43 (7) of the Act, as enacted by the Statutes of Ontario, 2001, chapter 8, section 23, is repealed.
35. (1) Clause 51 (4.1) (b) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 10, section 8, is repealed and the following substituted:
(b) 7.5 per cent multiplied by the ratio of the number of days in the taxation year after May 1, 2000 and before October 1, 2001 to the total number of days in the taxation year;
(2) Clause 51 (4.1) (c) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 10, section 8, is repealed and the following substituted:
(c) 6.5 per cent multiplied by the ratio of the number of days in the taxation year after September 30, 2001 and before January 1, 2003 to the total number of days in the taxation year;
(3) Clause 51 (4.1) (c) of the Act, as set out in the Statutes of Ontario, 2001, chapter 8, subsection 25 (1), is repealed.
(4) Subsection 51 (7) of the Act, as enacted by the Statutes of Ontario, 2001, chapter 8, section 25, is repealed.
36. The Act is amended by adding the following section:
Demutualization of insurance corporations
54.1 The provisions of sections 139.1 and 139.2 of the Income Tax Act (Canada), to the extent that they apply to corporations, apply for the purposes of this Act in respect of transactions occurring after December 15, 1998 in connection with the demutualization of insurance corporations.
37. Section 55.1 of the Act, as enacted by the Statutes of Ontario, 1996, chapter 29, section 55, is amended by striking out "Sections 142.2 to 142.6" at the beginning and substituting "Sections 142.2 to 142.7".
38. Subsections 57.1 (3) and (4) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 14, section 21, are amended by striking out "the profits" wherever it occurs and substituting in each case "the income or loss".
39. Subsection 57.4 (3) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 14, section 21, is amended by striking out "the profits or losses of the partnership that are allocable" and substituting "the income or loss of the partnership that is allocable".
40. (1) Clause 61 (1) (d) of the Act, as re-enacted by the Statutes of Ontario, 1994, chapter 14, section 25, is repealed and the following substituted:
(d) all of its liabilities, whether secured or unsecured, including all deferred credits, deferred taxes and reserve for future tax liabilities, but not its current accounts payable and any amounts prescribed by the regulations.
(2) Clause 61 (5) (b) of the Act is repealed and the following substituted:
(b) allocate the paid-up capital of the partnership as determined under clause (a) to each partner thereof in the same proportion as the share of the income or loss of the partnership to which the partner is entitled under the partnership agreement;
(3) Clause 61 (5) (d) of the Act is repealed and the following substituted:
(d) if two or more general partners of a limited partnership are corporations and a limited partner referred to in clause (c) is a shareholder of or is related to two or more of the general partners, the amount allocated to the limited partner under clause (b) must be apportioned and added to the paid-up capital of each general partner of which the limited partner is a shareholder or to which the limited partner is related, in the same proportion that the share of the income or loss of the limited partnership of the general partner is to the total share of the income or loss of the limited partnership of all of the general partners of which the limited partner is a shareholder or to which the limited partner is related.
41. (1) Subsection 62 (1) of the Act, as amended by the Statutes of Ontario, 1994, chapter 14, section 26, 1997, chapter 19, section 4, 1997, chapter 43, Schedule A, section 32, 1998, chapter 5, section 19 and 1998, chapter 34, section 48, is further amended by adding the following clauses:
(a) the amount of any deficit deducted by the corporation in computing its shareholders' equity;
. . . . .
(g) the amount of the corporation's deferred tax debit balance or future tax assets;
(h) the amount of the corporation's unrealized foreign exchange losses.
(2) Paragraph 9 of subsection 62 (1.2) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 34, section 48, is repealed and the following substituted:
9. An amount paid by a corporation for goods to be delivered, for services to be rendered or for the right to use property after the end of a taxation year of a corporation that ends after October 30, 1998 shall not be included in determining the amount of a deduction under clause (1) (c) for the taxation year unless the amount is included in the determination of the amount of its investment allowance under paragraph 181.2 (4) (b) of the Income Tax Act (Canada), or would be included if the corporation were subject to tax under Part I.3 of that Act.
(3) The definition of "total assets" in subsection 62 (3) of the Act is amended by striking out "the share of the profits of the partnership" and substituting "the share of the income or loss of the partnership".
42. (1) The definition of "reserves" in subsection 62.1 (1) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule A, section 33, is amended by striking out "any provision in respect of deferred taxes" and substituting "any provision in respect of deferred taxes or future tax liabilities".
(2) Subsection 62.1 (2) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule A, section 33, is amended by striking out the portion before clause (a) and substituting the following:
Paid-up capital
(2) The paid-up capital for a taxation year of a financial institution, other than an authorized foreign bank, is the paid-up capital of the financial institution as it stood at the end of the day on which the paid-up capital is required to be measured under this Part and is the amount, if any, by which the total of,
. . . . .
(3) Clause 62.1 (2) (f) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule A, section 33, is repealed and the following substituted:
(f) the amount of its deferred tax debit balance or future tax assets;
(4) Section 62.1 of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule A, section 33 and amended by 1998, chapter 34, section 49, 1999, chapter 9, section 86 and 2001, chapter 8, section 26, is further amended by adding the following subsection:
Paid-up capital of authorized foreign bank
(2.1) The paid-up capital for a taxation year of an authorized foreign bank is the amount determined under paragraph 181.3 (3) (e) of the Income Tax Act (Canada) in respect of the authorized foreign bank for the taxation year.
(5) Subsection 62.1 (4) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule A, section 33 and amended by 1999, chapter 9, section 86, is further amended by striking out the portion before clause (a) and substituting the following:
Taxable paid-up capital
(4) The taxable paid-up capital for a taxation year of a financial institution, other than an authorized foreign bank, is the amount, if any, by which the financial institution's paid-up capital for the year exceeds its investment allowance for the year in respect of all investments, each of which is an investment in a share of the capital stock or long-term debt of,
. . . . .
(6) Section 62.1 of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule A, section 33 and amended by 1998, chapter 34, section 49, 1999, chapter 9, section 86 and 2001, chapter 8, section 26, is further amended by adding the following subsections:
Taxable paid-up capital of authorized foreign bank
(4.1) The taxable paid-up capital for a taxation year of an authorized foreign bank is the amount by which its paid-up capital for the taxation year, as determined under subsection (2.1), exceeds its investment allowance for the taxation year in respect of all amounts each of which is the amount at the end of the taxation year, before the application of risk weights, that the bank would be required to report under the OSFI risk-weighting guidelines, if those guidelines applied and a report is required at that time, of an eligible investment used or held by the bank in the taxation year in the course of carrying on its Canadian banking business.
Eligible investment of authorized foreign bank
(4.2) For the purpose of subsection (4.1), an eligible investment of an authorized foreign bank is a share of the capital stock or long-term debt of a financial institution or insurance corporation,
(a) that is related to the bank at the end of the taxation year;
(b) that has a permanent establishment in Ontario; and
(c) that is not exempt from tax under this Part.
(7) Subsection 62.1 (5) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule A, section 33 and amended by 1999, chapter 9, section 86, is further amended by striking out the portion before the formula and substituting the following:
Investment allowance
(5) The investment allowance for a taxation year of a financial institution, other than an authorized foreign bank, in respect of an investment in a share of the capital stock or long-term debt of a related financial institution or related insurance corporation that has a permanent establishment in Ontario is the amount determined in accordance with the following formula,
. . . . .
(8) Section 62.1 of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule A, section 33 and amended by 1998, chapter 34, section 49, 1999, chapter 9, section 86 and 2001, chapter 8, section 26, is further amended by adding the following subsection:
Investment allowance, authorized foreign bank
(5.0.1) The investment allowance for a taxation year of an authorized foreign bank in respect of an eligible investment, as described in subsection (4.2), is the amount calculated using the formula,
A × B/C
in which,
"A" is the amount of the eligible investment as determined under subsection (4.1),
"B" is the percentage of the related financial institution's taxable paid-up capital that is not deemed under the rules prescribed by the regulations to be used by it in its last taxation year ending in the authorized foreign bank's taxation year in a jurisdiction other than Ontario, or the percentage of the related insurance corporation's taxable income that is not deemed under the rules prescribed by the regulation to have been earned by it in its last taxation year ending in the authorized foreign bank's taxation year in a jurisdiction other than Ontario, and
"C" is the percentage of the authorized foreign bank's taxable paid-up capital that is not deemed under the rules prescribed by the regulations to be used by it in the taxation year in a jurisdiction other than Ontario.
(9) Subsection 62.1 (5.1) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 86, is amended by striking out the portion before clause (a) and substituting the following:
Exception
(5.1) Despite subsections (4) and (5), the taxable paid-up capital for a taxation year of a financial institution, other than an authorized foreign bank, is the amount, if any, by which its paid-up capital for the year exceeds its investment allowance for the year in respect of all investments, each of which is an investment in a share of the capital stock or long-term debt of a related financial institution that has a permanent establishment in Canada and that is not exempt from tax under this Part, or a related insurance corporation that has a permanent establishment in Canada,
. . . . .
(10) Clause 62.1 (5.1) (a) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 86, is repealed and the following substituted:
(a) if the financial institution is not controlled, directly or indirectly, at any time in the taxation year by,
(i) another financial institution, other than a corporation prescribed by the regulations as a financial institution for the purposes of clause 58 (2) (g),
(ii) an insurance corporation, or
(iii) a corporation that would be considered to be a financial institution if it carried on business in Canada and had been incorporated in Canada; and
(11) Paragraph 1 of subsection 62.1 (10) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule A, section 33 and amended by 1998, chapter 34, section 49, and paragraph 2 of subsection 62.1 (10) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule A, section 33, are repealed and the following substituted:
1. If the financial institution is related at any time in the taxation year to another corporation that,
i. is a financial institution,
ii. has a permanent establishment in Canada, and
iii. is not exempt by virtue of subsection 71 (1) from tax under this Part,
the financial institution's capital deduction for the taxation year is the amount calculated using the formula,
A/B × [($2 million × C/D) + ($5 million × E/D)]
in which,
"A" is the amount that is the financial institution's taxable capital employed in Canada for the taxation year for the purposes of Part I.3 of the Income Tax Act (Canada),
"B" is the total of the amount of "A" for the taxation year and all amounts, each of which is the amount that is the taxable capital employed in Canada for the purposes of Part I.3 of the Income Tax Act (Canada) of a related financial institution for its last taxation year ending before the end of the financial institution's taxation year, if the related institution has a permanent establishment in Canada and is not exempt by virtue of subsection 71 (1) from tax under this Part,
"C" is the number of days in the taxation year before October 1, 2001,
"D" is the number of days in the taxation year, and
"E" is the number of days in the taxation year after September 30, 2001.
2. In any other case, the financial institution's capital deduction for the taxation year is the amount calculated using the formula,
($2 million × C/D) + ($5 million × E/D)
in which "C", "D" and "E" have the same meanings as in paragraph 1.
(12) Paragraphs 1 and 2 of subsection 62.1 (10) of the Act, as set out in the Statutes of Ontario, 2001, chapter 8, section 26 are repealed.
43. Paragraph 4 of subsection 66.1 (11) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 43, Schedule A, section 36, is amended by striking out "the profits of the partnership" and substituting "the income or loss of the partnership".
44. (1) Clause 68 (1) (a) of the Act, as re-enacted by the Statutes of Ontario, 2000, chapter 42, section 20, and clause 68 (1) (b) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 90, are repealed and the following substituted:
(a) neither the corporation's total assets at the end of the taxation year nor its gross revenue for the taxation year, as recorded in its books and records, exceeds,
(i) $1 million for a taxation year ending before January 1, 2001,
(ii) $1.5 million for a taxation year ending after December 31, 2000 and commencing before October 1, 2001, or
(iii) $3 million for a taxation year commencing after September 30, 2001; or
(b) the corporation's taxable paid-up capital as determined under Division B of this Part for the taxation year does not exceed $2 million if the taxation year commences before October 1, 2001.
(2) Clauses 68 (1) (a) and (b) of the Act, as set out in the Statutes of Ontario, 2001, chapter 8, subsections 27 (1) and (2), are repealed.
(3) Subsection 68 (3) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 90, is amended by striking out the portion before paragraph 1 and substituting the following:
No exemption
(3) Subsection (1) does not apply to a corporation for a taxation year if the sum of the following amounts exceeds $2 million if the taxation year commences before October 1, 2001 or $5 million if the taxation year commences after September 30, 2001:
. . . . .
(4) The amendment to subsection 68 (3) of the Act, as set out in the Statutes of Ontario, 2001, chapter 8, subsection 27 (3), is repealed.
45. (1) The definitions of "gross revenue" and "total assets" in subsection 69 (1) of the Act, as amended by the Statutes of Ontario, 1999, chapter 9, section 91, are repealed and the following substituted:
"gross revenue", of a corporation for a taxation year, includes, if the corporation was a member of a partnership during the taxation year, the same proportion of the gross revenue of the partnership, as recorded in the books and records of the partnership for all fiscal periods of the partnership ending in or coinciding with the taxation year, as the proportion of the income or loss of the partnership to which the corporation is entitled as a partner in the partnership; ("revenu brut")
"total assets", of a corporation at the end of a taxation year, includes, if the corporation was a member of a partnership during the taxation year, the same proportion of the total assets of the partnership at the end of the partnership's last fiscal period ending in or coinciding with the taxation year of the corporation, as recorded in the books and records of the partnership for the fiscal period, as the proportion of the income or loss of the partnership to which the corporation is entitled as a partner in the partnership. ("actif total")
(2) The definitions of "G" and "H" in paragraph 5 of subsection 69 (2) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 91, are repealed and the following substituted:
"G" is the sum of the amounts described in paragraphs 6 to 9,
"H" is,
i. for a taxation year that ends before October 1, 2001, the sum of the corporation's taxable paid-up capital for the taxation year and the taxable paid-up capital of each corporation, if any, with which it is associated, for the last taxation year of the associated corporation ending during the corporation's taxation year, or
ii. for a taxation year that ends after September 30, 2001, the sum of the corporation's taxable paid-up capital for the taxation year and the taxable paid-up capital of each corporation, if any, that has a permanent establishment in Canada and with which it is associated, for the last taxation year of the associated corporation ending during the corporation's taxation year.
(3) The definitions of "G" and "H" in paragraph 5 of subsection 69 (2) of the Act, as set out in the Statutes of Ontario, 2001, chapter 8, subsection 28 (1), are repealed.
(4) The definition of "P" in paragraph 8 of subsection 69 (2) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 91, is repealed and the following substituted:
"P" is the number of days in the taxation year that are after December 31, 2000 and before October 1, 2001.
(5) Paragraphs 9 and 10 of subsection 69 (2) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 91, are repealed and the following substituted:
9. For the purposes of the variable "G" in paragraph 5, the fourth amount is calculated using the formula,
(0.003 × Q) × R/F
in which,
"F" is the number of days in the taxation year,
"Q" is the lesser of,
i. $5 million, and
ii. the corporation's taxable paid-up capital for the taxation year or, if the corporation is associated with one or more corporations in the taxation year that have a permanent establishment in Canada, the total of the taxable paid-up capital of the corporation for the taxation year and of each such associated corporation for the last taxation year of the associated corporation ending during the corporation's taxation year,
"R" is the number of days in the taxation year that are after September 30, 2001.
(6) Paragraph 9 of subsection 69 (2) of the Act, as set out in the Statutes of Ontario, 2001, chapter 8, subsection 28 (2), is repealed.
(7) Subsection 69 (4) of the Act, as re-enacted by the Statutes of Ontario, 1999, chapter 9, section 91, is amended by striking out the portion before paragraph 1 and substituting the following:
No tax reduction
(4) Paragraphs 1 to 8 of subsection (2) do not apply to a corporation for a taxation year commencing before October 1, 2001 if the sum of the following amounts exceeds $3.2 million:
. . . . .
(8) The amendment to subsection 69 (4) of the Act, as set out in the Statutes of Ontario, 2001, chapter 8, subsection 28 (3), is repealed.
46. (1) Subsection 71 (1) of the Act, as re-enacted by the Statutes of Ontario, 1999, chapter 9, section 92, is amended by adding the following paragraph:
5. The Deposit Insurance Corporation of Ontario.
(2) Section 71 of the Act, as amended by the Statutes of Ontario, 1999, chapter 9, section 92, is further amended by adding the following subsection:
Transitional, Deposit Insurance Corporation of Ontario
(4) The amount of tax payable under this Part by the Deposit Insurance Corporation of Ontario for a taxation year commencing before May 5, 1999 is the amount calculated by multiplying the amount of tax that it would be required to pay for the year under this Part, but for subsection (1), by the ratio of the number of days in the taxation year that are before May 5, 1999 to the total number of days in the taxation year.
47. Part IV of the Act is amended by adding the following section:
Definitions
73.1 In this Part,
"accident insurance", "life insurance" and "sickness insurance" have the meanings given to those expressions by section 1 of the Insurance Act.
48. Subsection 74 (3) of the Act is repealed.
49. (1) Clause 74.1 (4) (c) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 14, section 32, is repealed and the following substituted:
(c) the amount of its deferred tax debit balance or future tax assets; and
. . . . .
(2) The definition of "reserves" in subsection 74.1 (15) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 14, section 32, is repealed and the following substituted:
"reserves", in respect of a life insurance corporation for a taxation year, means the amount at the end of the year of all of the corporation's reserves, provisions and allowances, other than allowances in respect of depreciation or depletion, and includes any provision in respect of deferred taxes or future tax liabilities; ("réserves")
50. Subsection 76 (2) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 34, section 52, is amended by striking out the portion before the formula and substituting the following:
Repeated failures to deliver returns
(2) Every corporation or person who fails to deliver a return for a taxation year as and when required under this Act, and who has received a demand for a return for the taxation year under subsection 75 (4), is liable to a penalty determined in accordance with the following formula, instead of a penalty under subsection (1), if, before the time the return was required to be delivered, a penalty was assessed under subsection (1) or this subsection against the corporation or person in respect of a return required to be delivered under this Act for any of the three previous taxation years:
. . . . .
51. (1) 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, 1998, chapter 34, section 53 and 2000, chapter 10, section 9, is further amended by adding the following subsections:
Exception
(4.2) If the amount of tax payable by the corporation for a taxation year commencing after December 31, 2001 or the amount of its first instalment base for a taxation year commencing after December 31, 2001 is at least $2,000 but less than $10,000, the corporation may pay instalments to the Minister in the following amounts at the following times, instead of the instalments required by clause (2) (a):
1. The corporation may pay an instalment on or before the last day of each of the third, sixth, ninth and twelfth months of the taxation year in respect of which the tax is payable, equal to,
i. one-quarter of the tax payable by the corporation for the taxation year, or
ii. one-quarter of the corporation's first instalment base for the taxation year.
2. Instead of the instalments described in paragraph 1, the corporation may pay,
i. on or before the last day of the third month of the taxation year in respect of which the tax is payable, an instalment equal to one-quarter of the corporation's second instalment base for the taxation year, and
ii. on or before the last day of the sixth, ninth and twelfth months of the taxation year in respect of which the tax is payable, an instalment equal to one-third of the amount by which the corporation's first instalment base for the taxation year exceeds the amount paid under subparagraph i for the taxation year.
Same
(4.3) Instead of paying the instalments required by clause (2) (a) on account of the tax payable for a taxation year commencing after December 31, 2001, a corporation may pay its tax instalments for the taxation year in accordance with subsection (4.2) if,
(a) the tax payable by the corporation for the taxation year is at least $2,000 but less than $10,000 after deducting all amounts, if any, deemed under any of sections 43.2 to 43.12 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
(b) the tax payable by the corporation for the immediately preceding taxation year is at least $2,000 but less than $10,000 after deducting,
(i) the amount, if any, of its capital gains refund as determined under section 48 for that taxation year, and
(ii) the amount, if any, deemed under section 43.2 to be a payment on account of its tax payable for that taxation year.
. . . . .
Exception
(5.1) Despite paragraphs 1 and 2 of subsection (4.2), the amount payable for a taxation year commencing after December 31, 2001 by a corporation to the Minister on or before the last day of the third, sixth, ninth or twelfth months in the taxation year shall be deemed to be the amount, if any, by which the amount payable by that day as determined under paragraph 1 or 2 of subsection (4.2), as the case may be, exceeds,
(a) one-quarter of the corporation's capital gains refund for the year, as determined under section 48, if the corporation is a mutual fund corporation; and
(b) one-quarter of the total of all amounts deemed by any of sections 43.2 to 43.12 to have been paid on account of the corporation's tax payable under this Act for the year.
(2) Subsection 78 (6) of the Act, as re-enacted by the Statutes of Ontario, 1996, chapter 1, Schedule B, section 11 and amended by 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 striking out "clause (2) (a)" in the portion before clause (a) and substituting "clause (2) (a) or by paragraph 1 or 2 of subsection (4.2)".
(3) Subclauses 78 (9) (a) (i) and (ii) of the Act are repealed and the following substituted:
(i) the previous taxation year ended for the purpose of clause (2) (a) or paragraphs 1 and 2 of subsection (4.2), and
(ii) the taxation year ended for the purpose of clause (2) (b),
. . . . .
(4) Clause 78 (9) (b) of the Act is repealed and the following substituted:
(b) despite clause (a), if the taxation year of the corporation is more than 350 days,
(i) twelve instalments are required if the corporation is subject to clause (2) (a) and four instalments are required if the corporation makes its instalments under paragraph 1 or 2 of subsection (4.2), and
(ii) the last instalment must be paid on or before the last day of the taxation year.
(5) Paragraph 1 of subsection 78 (11) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule A, section 45, is amended by striking out "Subsections (1), (2), (3), (4), (4.1), (5), (6), (8), (9) and (10)" and substituting "Subsections (1), (2), (3), (4), (4.1), (4.2), (4.3), (5), (5.1), (6), (8), (9) and (10)".
52. (1) Section 79 of the Act, as amended by the Statutes of Ontario, 1994, chapter 14, section 37, 1996, chapter 1, Schedule B, section 12, 1996, chapter 29, section 61 and 1998, chapter 34, section 54, is further amended by adding the following subsection:
Exception
(4.0.1) Despite subsection (4), if a corporation is entitled to pay instalments under subsection 78 (4.2) for a taxation year, the corporation is liable to pay interest at the rate prescribed by the regulations, calculated and charged daily on the deficiency in the corporation's instalment account for the taxation year, for each day there is a deficiency in the instalment account during the period from the last day of the third month in the instalment period to the end of the instalment period.
(2) Clause 79 (8) (c) of the Act, as re-enacted by the Statutes of Ontario, 1994, chapter 14, section 37, is repealed and the following substituted:
(c) in any other case, the instalment of tax payable under clause 78 (2) (a) or subsection 78 (4.2), as the case may be, determined under the method that results in the lowest total amount of instalments for the year.
53. (1) Clause 80 (11) (b) of the Act, as amended by the Statutes of Ontario, 1992, chapter 3, section 16, 1997, chapter 43, Schedule A, section 46, 1998, chapter 34, section 55 and 1999, chapter 9, section 95, is further amended by adding the following subclause:
(iii.1) the corporation is a non-resident that carries on business in Canada through a permanent establishment and the assessment, reassessment, additional assessment or notification is made for a taxation year ending after December 31, 1999 as a consequence of,
(A) an allocation by the corporation of revenues or expenses as amounts in respect of the Canadian business (other than revenue and expenses that relate solely to the Canadian business, that are recorded in the books of account of the Canadian business, and the documentation in support of which is kept in Canada), or
(B) a notional transaction between the corporation and its Canadian business, where the transaction is recognized for the purpose of the computation of an amount under this Act,
(2) Subclause 80 (11) (b) (iv) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule A, section 46 and amended by 1998, chapter 34, section 55, is repealed and the following substituted:
(iv) subsection 5.1 (2) or (5), 29.1 (6) or (7) or 31.1 (6) or (7) applies to the corporation, or to a partnership of which the corporation is a member, in respect of a disposition or acquisition of property in the taxation year,
(3) Subsection 80 (15) of the Act, as amended by the Statutes of Ontario, 1998, chapter 34, section 55 and 1999, chapter 9, section 95, is further amended by adding the following clause:
(c.1) the allocation or notional transaction referred to in subclause (11) (b) (iii.1);
(4) Subsection 80 (20) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 14, section 38, is repealed and the following substituted:
Consequential assessment
(20) Despite subsections (11) and (12), if the result of an assessment or decision on an appeal is to change a particular balance of a corporation for a particular taxation year, the Minister may, and if an officer of the corporation requests it in writing shall, before the later of the expiration of the normal reassessment period in respect of a subsequent taxation year and the period of one year after the day on which all rights of objection and appeal have expired or have been determined in respect of the particular taxation year, reassess the tax, interest, penalties and any other amounts payable under this Act by the corporation in respect of the subsequent taxation year, but only for the purpose of giving effect to any provision of this Act requiring the inclusion or allowing the deduction of an amount in computing the balance of the corporation for the subsequent year, to the extent that the inclusion or deduction can reasonably be considered to relate to the change in the particular balance of the corporation for the particular year.
(5) Section 80 of the Act, as amended by the Statutes of Ontario, 1992, chapter 3, section 16, 1994, chapter 14, section 38, 1996, chapter 1, Schedule B, section 13, 1996, chapter 24, section 30, 1996, chapter 29, section 62, 1997, chapter 19, section 4, 1997, chapter 43, Schedule A, section 46, 1998, chapter 5, section 23, 1998, chapter 34, section 55 and 1999, chapter 9, section 95, is further amended by adding the following subsections:
Exception, reassessment
(25.1) Despite subsections (11), (12) and (15), the Minister may reassess and make additional assessments or assess tax, interest or penalties at any time to give effect to subsection 69 (11) of the Income Tax Act (Canada) as it applies for the purposes of this Act.
. . . . .
Application, s. 160 of Income Tax Act (Canada)
(30) Subsections 160 (1.1), (2), (3) and (3.1) of the Income Tax Act (Canada) apply for the purposes of this Act, to the extent the subsections apply in respect of corporations, with the following exceptions:
1. In the application of subsection 160 (2), a reference to "this Division" shall be read as a reference to Division C of this Part.
2. In the application of subsection 160 (2), a reference to "section 152" shall be read as a reference to this section.
54. (1) Subsection 85 (1) of the Act is amended by striking out "Ontario Court (General Division)" and substituting "Superior Court of Justice".
(2) Subsection 85 (2) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 43, Schedule A, section 48, is amended by striking out "Ontario Court (General Division)" in the portion before clause (a) and substituting "Superior Court of Justice".
55. Section 86 of the Act is amended by striking out "Ontario Court (General Division)" and substituting "Superior Court of Justice".
56. Subsection 87 (1) of the Act is amended by striking out "Ontario Court (General Division)" and substituting "Superior Court of Justice".
57. Section 89 of the Act is amended by striking out "Ontario Court (General Division)" and substituting "Superior Court of Justice".
58. Clause 91 (a) of the Act is repealed and the following substituted:
(a) with respect to a notice of objection under subsection 84 (1),
(i) before the expiration of the time allowed under that subsection for service of the notice of objection, or
(ii) within one year from the day of mailing of the notice of assessment that is the subject of the objection, if the corporation provides an explanation satisfactory to the Minister explaining why the notice of objection could not be served within the time required by subsection 84 (1) and the Minister agrees to the extension of time; or
. . . . .
59. (1) Subsection 93 (2) of the Act is amended by striking out "by registered letter or by a demand served personally" in the portion before clause (a) and substituting "by registered letter or by a demand served personally or delivered by a courier service".
(2) Subsection 93 (3) of the Act is amended by striking out "by registered letter or by a demand served personally" and substituting "by registered letter or by a demand served personally or delivered by a courier service".
(3) Subsection 93 (4) of the Act is amended by striking out "by registered letter or by a demand served personally" and substituting "by registered letter or by a demand served personally or delivered by a courier service".
60. Subsections 99 (5) and (6) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 14, section 44, are repealed and the following substituted:
Lien effective
(5) A notice of lien and charge under subsection (2) is effective from the time assigned to its registration by the registrar or branch registrar and expires on the fifth anniversary of its registration unless a renewal notice of lien and charge is registered under this section before the end of the five-year period, in which case the lien and charge remains in effect for a further five-year period from the date the renewal notice is registered.
Same
(6) Where any amount payable or required to be remitted under this Act remains outstanding and unpaid at the end of the period, or its renewal, referred to in subsection (5), the Minister may register a renewal notice of lien and charge; the lien and charge remains in effect for a five-year period from the date the renewal notice is registered, until the amount is fully paid, and shall be deemed to be continuously registered since the initial notice of lien and charge was registered under subsection (2).
61. (1) Subsection 100 (1) of the Act, as amended by the Statutes of Ontario, 1994, chapter 14, section 45, is repealed and the following substituted:
Garnishment
(1) When the Minister has knowledge or suspects that a person (a "third party") is or will be, within 365 days, liable to make any payment to a corporation (a "garnishee") liable to make a payment under this Act, the Minister may, by registered letter or by letter served personally, require the third party to pay forthwith, where the money is immediately payable and, in any other case, as and when the money becomes payable, to the Minister any money that is otherwise payable by the third party to the garnishee in whole or in part on account of the garnishee's liability under this Act.
(2) Subsections 100 (7) and (8) of the Act are repealed and the following substituted:
Service of garnishee
(7) If a person (a "third party") who is, or within 365 days will become, indebted or liable to make a payment to a corporation liable to make a payment under this Act carries on business under a name or style other than the third party's own name, the letter under this section from the Minister to the third party may be addressed using the name or style under which the third party carries on business and, in the case of personal service, the letter shall be deemed to have been validly served if it is left with an adult employed at the place of business of the addressee.
Same
(8) If persons ("partners") who are, or within 365 days will become, indebted or liable to make a payment to a corporation liable to make a payment under this Act carry on business in partnership, the letter under this section from the Minister to the partners may be addressed to the partnership name and, in the case of personal service, the letter shall be deemed to have been validly served if it is served on a partner or left with an adult employed at the place of business of the partnership.
62. Clause 102 (1) (b) of the Act, as amended by the Statutes of Ontario, 1994, chapter 14, section 47, is further amended by striking out "Ontario Court (General Division)" and substituting "Superior Court of Justice".
63. Subsection 112 (1) of the Act, as amended by the Statutes of Ontario, 1994, chapter 14, section 52, 1996, chapter 18, section 23, 1996, chapter 24, section 31, 1997, chapter 43, Schedule A, section 51 and 1998, chapter 15, Schedule E, section 5, is further amended by adding the following clause:
(d.1) prescribing rules for the purposes of subsection 11.2 (14);
Commencement
64. (1) Subject to subsections (2) to (11), this Part comes into force on the day this Act receives Royal Assent.
Same
(2) Subsection 25 (1) shall be deemed to have come into force on December 1, 1991.
Same
(3) Subsection 42 (10) shall be deemed to have come into force on May 7, 1997.
Same
(4) Section 21 and subsection 25 (3) shall be deemed to have come into force on January 1, 1998.
Same
(5) Subsection 41 (2) shall be deemed to have come into force on October 31, 1998.
Same
(6) Section 36 shall be deemed to have come into force on December 16, 1998.
Same
(7) Section 30 shall be deemed to have come into force on January 1, 1999.
Same
(8) Sections 20 and 46 shall be deemed to have come into force on May 5, 1999.
Same
(9) Subsection 29 (1), section 37 and subsections 42 (2), (4), (5), (6), (7), (8) and (9) shall be deemed to have come into force on June 28, 1999.
Same
(10) Subsections 34 (2) and 53 (1) and (3) shall be deemed to have come into force on January 1, 2000.
Same
(11) The following provisions shall be deemed to have come into force on October 1, 2001:
1. Sections 22, 31, 32 and 33.
2. Subsections 34 (1), (3), (4) and (5).
3. Section 35.
4. Subsections 42 (11) and (12).
5. Section 44.
6. Subsections 45 (2), (3), (4), (5), (6), (7) and (8).
PART VI
EDUCATION ACT
65. Section 257.12 of the Education Act, as enacted by the Statutes of Ontario, 1997, chapter 31, section 113 and amended by 1998, chapter 3, section 34, 1998, chapter 33, section 42, 1999, chapter 9, section 99 and 2000, chapter 25, section 45, is further amended by adding the following subsection:
Retroactivity
(1.2) A regulation made under this section is, if it so provides, effective with reference to a period before it is filed.
Commencement
66. This Part comes into force on the day this Act receives Royal Assent.
PART VII
ELECTRICITY ACT, 1998
67. The Electricity Act, 1998 is amended by adding the following section:
Transition: use of land in connection with generation
46.1 (1) If, on March 31, 1999, the occupier of land used or could lawfully have used the land in connection with the generation of electricity, any occupier of the land may,
(a) use the land in connection with the generation of electricity,
(i) for the use for which the land was used on March 31, 1999, or
(ii) for any use for which the land could lawfully have been used on March 31, 1999; and
(b) use or erect on the land any building or structure in connection with a use of the land that is authorized by clause (a).
Same
(2) For the purpose of subsection (1), if, on March 31, 1999, land was used or could lawfully have been used in connection with a generation facility that used a type of fuel prescribed by the regulations to generate electricity and, with respect to that type of fuel, the regulations prescribe another type of fuel as a substitute fuel, it shall be deemed to have been lawful on March 31, 1999 to use the land in connection with a generation facility that used the substitute fuel to generate electricity.
Transition: use of land in connection with transmission
or distribution
(3) If, on March 31, 1999, the occupier of land used or could lawfully have used the land in connection with the transmission or distribution of electricity, any occupier of the land may,
(a) use the land in connection with the transmission or distribution of electricity,
(i) for the use for which the land was used on March 31, 1999, or
(ii) for any use for which the land could lawfully have been used on March 31, 1999; and
(b) use or erect on the land any building or structure in connection with a use of the land that is authorized by clause (a).
Planning Act
(4) This section applies despite any provision of the Planning Act that was enacted before the day the Responsible Choices for Growth and Fiscal Responsibility Act (Budget Measures), 2001 received Royal Assent and despite any by-law, regulation or order made under the Planning Act before that day.
68. (1) Section 92.1 of the Act, as enacted by the Statutes of Ontario, 2000, chapter 25, section 46 and amended by 2001, chapter 9, Schedule F, section 1, is further amended by adding the following subsection:
Exception, water power lease under Niagara Parks Act
(5.1) Each prescribed holder of a water power lease under the Niagara Parks Act shall make such payments as may be prescribed to The Niagara Parks Commission, in the time and manner prescribed by regulation, and those payments reduce the amount of the charge payable by the holder under subsection (5).
(2) Subsection 92.1 (21) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 25, section 46, is amended by adding the following clause:
(f.1) prescribing water power lease holders for the purposes of subsection (5.1), specifying the amount of the payments to be made under that subsection and the time and manner in which the payments are to be made;
69. Subsection 114 (1) of the Act is amended by adding the following clause:
(h.1) for the purpose of subsection 46.1 (2), prescribing types of fuel and, with respect to each type of fuel that is prescribed, prescribing one or more other types of fuel as substitute fuels;
Commencement
70. (1) Subject to subsections (2) and (3), this Part comes into force on the day this Act receives Royal Assent.
Same
(2) Sections 67 and 69 shall be deemed to have come into force on April 1, 1999.
Same
(3) Section 68 shall be deemed to have come into force on January 1, 2001.
PART VIII
EMPLOYER HEALTH TAX ACT
71. (1) 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 and amended by 1996, chapter 18, section 4, 1996, chapter 24, section 1 and 1999, chapter 9, section 106, is further amended by striking out the portion before clause (a) and substituting the following:
"eligible employer" means, in respect of a particular time, an employer who is not, at that time,
. . . . .
(2) Clause (a) of the definition of "employee" in subsection 1 (1) of the Act is amended by striking out "and in the service of".
72. (1) Subsection 2 (3.1) of the Act, as re-enacted by the Statutes of Ontario, 1996, chapter 29, section 5, and subsections 2 (3.2), (3.3) and (3.4) of the Act, as enacted by 1996, chapter 29, section 5, are repealed and the following substituted:
Stock option benefits
(3.1) If an employer has agreed to sell or issue to an employee a security 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) in respect of the security is deemed to be remuneration paid to the employee by the employer in the designated year.
Stock option benefits,
connected corporation
(3.2) If an employer or a corporation or mutual fund trust connected to the employer has agreed to sell or issue to an employee of the employer a security of the employer or of a corporation or mutual fund trust connected to the employer, the amount of any benefit deemed to be received by the employee under section 7 of the Income Tax Act (Canada) in respect of the security is deemed to be remuneration paid to the employee by the employer in the designated year.
Stock option benefits, former employee
(3.3) Despite subsections (3.1) and (3.2), if an employer or a corporation or mutual fund trust connected to the employer has agreed to sell or issue to an employee of the employer a security of the employer or of a corporation or mutual fund trust connected to the employer, the amount of any benefit with respect to the security that is deemed to be received by the employee under section 7 of the Income Tax Act (Canada) after the employee has ceased to be employed by the employer is deemed to be remuneration paid to the employee by the employer in the designated year.
Connected corporation
(3.4) For the purposes of subsections (3.2) and (3.3), a corporation or a mutual fund trust is connected to an employer if the employer and the corporation or trust do not deal at arm's length with each other within the meaning of section 251 of the Income Tax Act (Canada).
(2) Section 2 of the Act, as amended by the Statutes of Ontario, 1994, chapter 8, section 2, 1996, chapter 18, section 5, 1996, chapter 24, section 2, 1996, chapter 29, section 5 and 1998, chapter 34, section 60, is further amended by adding the following subsection:
Non-Canadian-controlled private corporation
(3.5) A reference to "the same year" in subsections (3.1), (3.2) or (3.3) shall, in the application of those subsections in respect of shares of the capital stock of a corporation, be read as a reference to "the year in which the employee acquired the shares" unless, at both the time the agreement to sell or issue the shares is entered into and at the time the shares are acquired under the agreement,
(a) the person who agreed to sell or issue the shares to the employee is a Canadian-controlled private corporation, within the meaning assigned by subsection 125 (7) of the Income Tax Act (Canada); and
(b) the shares are shares of the capital stock of a Canadian-controlled private corporation.
(3) Subsection 2 (3.5) of the Act, as enacted by subsection (2), is repealed and the following substituted:
Designated year
(3.5) For the purposes of subsections (3.1) to (3.3), the designated year in respect of the acquisition of a security by an employee is,
(a) the year in which the amount of the benefit is deemed to be received by the employee under section 7 of the Income Tax Act (Canada) if, at both the time the agreement to sell or issue the security is entered into and the time the security is acquired under the agreement,
(i) the person who agreed to sell or issue the security to the employee is a Canadian-controlled private corporation, within the meaning assigned by subsection 125 (7) of the Income Tax Act (Canada), and
(ii) the security is a share of the capital stock of a Canadian-controlled private corporation; or
(b) the year in which the employee acquired the security in any other case.
(4) Subsection 2 (5) of the Act, as enacted by the Statutes of Ontario, 1996, chapter 18, section 5, is repealed and the following substituted:
Taxable total Ontario remuneration
(5) For the purposes of subsection (2), the taxable total Ontario remuneration paid by an employer during a year is,
(a) in the case of an employer who is an eligible employer at any time in the year, the amount by which the total Ontario remuneration paid by the employer during the year exceeds the employer's exemption amount for the year; or
(b) in the case of an employer who is not an eligible employer at any time in the year, the amount of the total Ontario remuneration paid by the employer during the year.
(5) Clause 2 (6) (d) of the Act, as enacted by the Statutes of Ontario, 1996, chapter 18, section 5, is repealed and the following substituted:
(d) $400,000 if the year is 1999 or 2000.
(6) Section 2 of the Act, as amended by the Statutes of Ontario, 1994, chapter 8, section 2, 1996, chapter 18, section 5, 1996, chapter 24, section 2, 1996, chapter 29, section 5 and 1998, chapter 34, section 60, is further amended by adding the following subsection:
Exemption amount after 2000
(6.1) The exemption amount of an employer who is an eligible employer at any time in a year commencing after December 31, 2000 and who is not associated in the year with one or more employers who are eligible employers at any time in the year is the amount calculated using the formula,
$400,000 × A/B
in which,
"A" is the number of days in the year in which the employer,
(a) has one or more permanent establishments in Ontario, and
(b) is an eligible employer, and
"B" is the number of days in the year
(7) Subsection 2 (7) of the Act, as enacted by the Statutes of Ontario, 1996, chapter 18, section 5, is repealed and the following substituted:
Associated employers, before 2001
(7) If all of the eligible employers who are associated with each other in a year ending before January 1, 2001 enter into an agreement in which they allocate an amount to one or more of them for the year, and the amount allocated or the total of the amounts allocated, as the case may be, does not exceed the maximum exemption amount that would otherwise be available for the year under subsection (6) to an eligible employer who is not associated in the year with another eligible employer, the exemption amount for the year of each of the eligible employers is the amount allocated to that employer.
Associated employers, after 2000
(7.1) If all of the employers who are associated with each other in a year commencing after December 31, 2000 and who are eligible employers at any time in the year enter into an agreement in which they allocate to one or more of them for the year an amount that does not exceed the highest exemption amount that would be determined under subsection (6.1) for any of them if they were not associated in the year, the exemption amount for the year for each of them is the lesser of,
(a) the amount allocated to that employer; and
(b) the amount that would be that employer's exemption amount for the year under subsection (6.1) if that employer were not associated.
(8) Subsection 2 (8) of the Act, as enacted by the Statutes of Ontario, 1996, chapter 18, section 5, is amended by inserting "or (7.1)" after "subsection (7)".
(9) Subsection 2 (9) of the Act, as enacted by the Statutes of Ontario, 1996, chapter 18, section 5, is amended by inserting "or (7.1)" after "subsection (7)".
(10) Subsection 2 (10) of the Act, as enacted by the Statutes of Ontario, 1996, chapter 18, section 5, is amended by striking out the portion before clause (a) and substituting the following:
Part-year employer
(10) Despite subsections (6) and (7), an employer's exemption amount for a year ending before January 1, 2001 shall not exceed the amount otherwise determined under this section multiplied by the ratio of,
. . . . .
(11) Section 2 of the Act, as amended by the Statutes of Ontario, 1994, chapter 8, section 2, 1996, chapter 18, section 5, 1996, chapter 24, section 2, 1996, chapter 29, section 5 and 1998, chapter 34, section 60, is further amended by adding the following subsection:
Definition
(11) In this section,
"security" has the meaning assigned by subsection 7 (7) of the Income Tax Act (Canada).
73. (1) The French version of clause 2.2 (3) (b) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 45, is amended by striking out "une valeur mobilière" and substituting "un titre".
(2) Section 2.2 of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 45, is amended by adding the following subsection:
Amalgamations
(5.1) For the purposes of subsection (4), if the taxation year of an employer that ends in the year referred to in subsection (2) is the first taxation year of the employer ending after an amalgamation to which section 87 of the Income Tax Act (Canada) applies, references to the preceding taxation year are to be read as references to the taxation year of each of the predecessor corporations (as referred to in section 87 of that Act) that ended immediately before the amalgamation.
(3) Subsection 2.2 (15) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 45, is amended by adding the following:
"security" has the meaning assigned by subsection 7 (7) of the Income Tax Act (Canada); ("titre")
74. The definition of "E" in subsection 3 (4) of the Act, as enacted by the Statutes of Ontario, 1996, chapter 18, section 6, is repealed and the following substituted:
"E" is,
(a) the amount, if any, of the employer's exemption amount for the year under section 2 that is available for deduction and is deducted by the employer in determining the amount of the instalment, if the employer is an eligible employer at any time in the year, or
(b) nil, if the employer is not an eligible employer at any time in the year;
75. Subsection 6 (1) of the Act, as amended by the Statutes of Ontario, 1994, chapter 8, section 6, is repealed and the following substituted:
Refunds
(1) If the return required to be delivered by a taxpayer under this Act is delivered within four years from the day the return is required to be delivered under section 5,
(a) the Minister may refund the amount of any overpayment made on account of the tax payable under this Act for the year whether or not the taxpayer has requested the refund; and
(b) the Minister shall refund the amount the Minister determines under subsection 8 (1) to be an overpayment made on account of the tax payable under this Act for the year if the taxpayer applies in writing to the Minister for the refund within four years after the day on which the return was required to be delivered under section 5.
76. Section 7 of the Act, as amended by the Statutes of Ontario, 1994, chapter 8, section 7 and 1996, chapter 29, section 6, is further amended by adding the following subsection:
Exception
(1.1) The amount of interest payable under subsection (1) by an employer in respect of a particular year shall be calculated without regard to any amount the employer failed to pay as an instalment on account of the tax payable by the employer for the year, if the employer's total Ontario remuneration for the prior year was not more than $600,000.
77. The English version of subsection 8.1 (1) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 8, section 9, is amended by striking out "or refund".
78. (1) The English version of subsection 9 (1) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 43, Schedule F, section 2, is amended by striking out "or refund".
(2) Subsection 9 (4) of the Act, as amended by the Statutes of Ontario, 1994, chapter 8, section 10, is repealed and the following substituted:
Extension of time
(4) The time for serving a notice of objection under subsection (1) may be extended by the Minister if the taxpayer makes an application for the extension,
(a) before the expiry of the time allowed under that subsection; or
(b) within one year from the day of mailing or delivery of the notice of assessment or statement of disallowance that is the subject of the objection, if the taxpayer provides an explanation satisfactory to the Minister explaining why the notice of objection could not be served within the time required by subsection (1) and the Minister agrees to the extension of time.
79. (1) Subsection 10 (1) of the Act, as re-enacted by the Statutes of Ontario, 1994, chapter 8, section 11, is amended by striking out "Ontario Court (General Division)" and substituting "Superior Court of Justice".
(2) Subsection 10 (3) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 43, Schedule F, section 2, is amended by striking out "Ontario Court (General Division)" in the portion before clause (a) and substituting "Superior Court of Justice".
(3) Subsection 10 (8) of the Act, as amended by the Statutes of Ontario, 1994, chapter 8, section 11, is further amended by striking out "Ontario Court (General Division)" and substituting "Superior Court of Justice".
80. (1) Subsection 11 (1) of the Act is amended by,
(a) striking out "Ontario Court (General Division)" and substituting "Superior Court of Justice";
(b) striking out "in the General Division" in the English version and substituting "in that court"; and
(c) striking out "of the General Division" in the English version and substituting "of that court".
(2) Subsection 11 (2) of the Act is amended by striking out "Ontario Court (General Division)" and substituting "Superior Court of Justice".
81. Subsection 18 (2) of the Act, as re-enacted by the Statutes of Ontario, 1994, chapter 8, section 18, is amended by striking out "ninety days" and substituting "one year".
82. Clause 20 (1) (b) of the Act, as amended by the Statutes of Ontario, 1994, chapter 8, section 20, is further amended by striking out "Ontario Court (General Division)" and substituting "Superior Court of Justice".
83. Subsections 23 (4) and (5) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 8, section 23, are repealed and the following substituted:
Lien effective
(4) A notice of lien and charge under subsection (2) is effective from the time assigned to its registration by the registrar or branch registrar and expires on the fifth anniversary of its registration unless a renewal notice of lien and charge is registered under this section before the end of the five-year period, in which case the lien and charge remains in effect for a further five-year period from the date the renewal notice is registered.
Same
(5) Where any amount payable or required to be remitted under this Act remains outstanding and unpaid at the end of the period, or its renewal, referred to in subsection (4), the Minister may register a renewal notice of lien and charge; the lien and charge remains in effect for a five-year period from the date the renewal notice is registered, until the amount is fully paid, and shall be deemed to be continuously registered since the initial notice of lien and charge was registered under subsection (2).
84. Section 30 of the Act, as re-enacted by the Statutes of Ontario, 1994, chapter 8, section 28 and amended by 1994, chapter 8, section 29 and 1996, chapter 29, section 7, is further amended by adding the following subsection:
Exception
(2.1) Subsection (2) does not apply to an employer for a year if the employer's total Ontario remuneration for the prior year was $600,000 or less.
Commencement
85. (1) Subject to subsections (2) to (5), this Part comes into force on the day this Act receives Royal Assent.
Same
(2) Sections 76 and 84 shall be deemed to have come into force on January 1, 2000.
Same
(3) Subsection 72 (2) shall be deemed to have come into force on February 28, 2000.
Same
(4) Section 73 shall be deemed to have come into force on May 3, 2000.
Same
(5) Subsections 71 (1), 72 (4), (5), (6), (7), (8), (9) and (10) and section 74 shall be deemed to have come into force on January 1, 2001.
PART IX
ESTATE ADMINISTRATION
TAX ACT, 1998
86. Clause (b) of the definition of "estate certificate" in section 1 of the Estate Administration Tax Act, 1998 is amended by inserting "or the Superior Court of Justice" after "the Ontario Court (General Division)".
87. Subsection 4 (1) of the Act is amended by striking out "Ontario Court (General Division)" and substituting "Superior Court of Justice".
Commencement
88. This Part comes into force on the day this Act receives Royal Assent.
PART X
FUEL TAX ACT
89. The definition of "dye-point" in subsection 1 (1) of the Fuel Tax Act is repealed and the following substituted:
"dye-point" means a terminal designated by the Minister for the purpose of colouring fuel or a facility that meets the requirements established by the Minister for colouring fuel at the facility; ("station de coloration")
90. The Act is amended by adding the following section:
Exemptions under other Acts
1.1 No person otherwise subject to tax under this Act is exempt therefrom by reason of an exemption granted to the person, or to or in respect of the personal or real property of the person, by or under any other Act, unless the other Act expressly mentions this Act.
91. Subsection 4.18 (5) of the Act, as enacted by the Statutes of Ontario, 1991, chapter 49, section 5, is amended by striking out "for the dyeing, storing, transporting or delivery of" and substituting "to colour, store, transport or deliver".
92. The English version of subsection 4.19 (1) of the Act, as enacted by the Statutes of Ontario, 1991, chapter 49, section 5 and amended by 1998, chapter 30, section 17, is further amended by striking out "to dye fuel" and substituting "to colour fuel".
93. (1) Subsection 5 (3) of the Act, as re-enacted by the Statutes of Ontario, 1991, chapter 49, section 6 and amended by 1998, chapter 30, section 18, is repealed and the following substituted:
Offence, coloured fuel
(3) Every operator of a motor vehicle to which a number plate is attached as required under the Highway Traffic Act and that is found to contain coloured fuel in the fuel tank of the motor vehicle is guilty of an offence and on conviction is liable to a fine of not less than $200 and not more than $1,000.
(2) Subsection 5 (6) of the Act, as enacted by the Statutes on Ontario, 1998, chapter 30, section 18, is repealed and the following substituted:
Offence, unauthorized fuel
(6) Every operator of a motor vehicle to which a number plate is attached as required under the Highway Traffic Act and that is found to contain unauthorized fuel in the fuel tank of the motor vehicle is guilty of an offence and on conviction is liable to a fine of not less than $200 and not more than $1,000.
94. (1) Subsection 8 (12) of the Act, as re-enacted by the Statutes of Ontario, 1991, chapter 49, section 10, is amended by striking out "Ontario Court (General Division)" and substituting "Superior Court of Justice".
(2) Subsection 8 (14) of the Act, as re-enacted by the Statutes of Ontario, 1991, chapter 49, section 10, is amended by striking out "Ontario Court (General Division)" in the portion before clause (a) and substituting "Superior Court of Justice".
95. (1) Subsection 11 (1) of the Act, as re-enacted by the Statutes of Ontario, 1998, chapter 30, section 23, is amended by inserting "distributor" after "collector".
(2) Subsection 11 (8) of the Act, as amended by the Statutes of Ontario, 1994, chapter 18, section 2, is repealed and the following substituted:
Payment
(8) The remittance required by subsection (7) shall be made to a person authorized by the Minister and the authorized person shall forward it to the Minister in accordance with the requirements imposed by the Minister when giving the authorization.
96. (1) Subsection 13 (2) of the Act, as re-enacted by the Statutes of Ontario, 1998, chapter 30, section 26, is amended by striking out "any tax collected or payable" and substituting "any tax collectable, collected or payable".
(2) Section 13 of the Act, as amended by the Statutes of Ontario, 1991, chapter 49, section 15, 1994, chapter 18, section 2, 1997, chapter 19, section 7 and 1998, chapter 30, section 26, is further amended by adding the following subsections:
Assessment re amounts held in trust
(4.1) The Minister may assess the amount that a person is responsible to pay under subsection 3.6.1 (6) and the assessed amount shall be deemed to be tax collectable or collected, as the case may be, by the person.
Penalty for excess losses
(4.2) Every person who has excess unverifiable losses, determined in accordance with the regulations, shall pay a penalty, when assessed therefor, equal to the tax that would have been collectable by the person if the quantity of fuel that exceeds the prescribed threshold for an unverifiable loss had been sold to a purchaser liable to pay tax under this Act.
97. The Act is amended by adding the following section:
Assessment, non-arm's length transfers
13.1 (1) In this section,
"member of his or her family" means, in relation to a transferor, the parent, spouse, grandparent, child, grandchild, son-in-law, daughter-in-law, father-in-law or mother-in-law of the transferor; ("membre de sa famille")
"same-sex partner" means same-sex partner as defined in section 29 of the Family Law Act; ("partenaire de même sexe")
"spouse" means spouse as defined in section 29 of the Family Law Act. ("conjoint")
Liability to pay
(2) If at any time a person transfers property (including money), either directly or indirectly, by means of a trust or by any other means to a member of his or her family, to his or her same-sex partner, to an individual who is less than 18 years old at the time of the transfer, or to another person with whom the transferor is not dealing at arm's length, the transferor and transferee are jointly and severally liable to pay under this Act the amount determined under subsection (4).
Same
(3) For the purpose of subsection (2), persons shall be deemed not to deal with each other at arm's length if, by reason of subsections 251 (1) to (6) of the Income Tax Act (Canada), they are related to each other for the purposes of that Act.
Amount payable
(4) The amount referred to in subsection (2) is the lesser of "A" and "B" where,
"A" is the amount, if any, by which the fair market value of the property transferred, at the time of the transfer, exceeds the fair market value, at the time of the transfer, of the consideration given by the transferee for the transfer; and
"B" is the total of all amounts each of which is,
(a) any tax payable by the transferor under this Act at the time of the transfer or at any previous time but not paid,
(b) any tax collected, collectable or payable but not remitted or transmitted as required under this Act by the transferor for the reporting period during which the transfer took place or any previous reporting period,
(c) any penalty or interest for which the transferor is liable under this Act at the time of the transfer.
Same
(5) Nothing in subsection (2) or (4) limits the liability of the transferor or transferee under any other provision of this Act.
Assessment
(6) The Minister may assess a transferee at any time in respect of any amount payable by reason of this section and section 14 applies, with necessary modifications, to the assessment.
Effect of payment
(7) If a transferor and transferee are jointly and severally liable to pay an amount under this section,
(a) a payment by the transferee on account of the transferee's liability discharges the joint liability, to the extent of the payment; and
(b) a payment by the transferor on account of the transferor's liability under this Act discharges the transferee's liability under this section to the extent that the payment reduces the balance of the transferor's liability under this Act to an amount less than the amount of the transferee's liability under this section.
Exception
(8) Subsection (2) does not apply with respect to a transfer of property (including money) between spouses or same-sex partners,
(a) under a decree, order or judgment of a competent tribunal; or
(b) under a written separation agreement if, at the time of the transfer, the transferor and transferee were living separate and apart as a result of a breakdown of their relationship.
98. (1) Subsection 14 (5) of the Act, as amended by the Statutes of Ontario, 1991, chapter 49, section 16, is further amended by striking out "Ontario Court (General Division)" and substituting "Superior Court of Justice".
(2) Subsection 14 (6) of the Act, as re-enacted by the Statutes of Ontario, 1998, chapter 30, section 27, is amended by striking out "Ontario Court (General Division)" in the portion before clause (a) and substituting "Superior Court of Justice".
(3) The English version of subsection 14 (9) of the Act is amended by striking out "notice of disallowance" and substituting "statement of disallowance".
(4) Subsection 14 (10) of the Act is amended by striking out "Ontario Court (General Division)" and substituting "Superior Court of Justice".
99. (1) Clause 17 (1) (b) of the Act is amended by striking out "Ontario Court (General Division)" and substituting "Superior Court of Justice".
(2) Subsection 17 (3) of the Act, as amended by the Statutes of Ontario, 1998, chapter 30, section 28, is repealed and the following substituted:
Garnishment
(3) When the Minister has knowledge or suspects that a person (a "third party") is, or within 365 days will become, indebted or liable to make any payment to a person (a "tax debtor") liable to make a payment or remittance under this Act, the Minister may, by registered letter or by letter served personally, require the third party to promptly pay to the Minister any money that is otherwise payable by the third party to the tax debtor in whole or in part during the 365 days after the third party receives the letter.
(3) Subsection 17 (3.1) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 30, section 28, is amended by striking out the portion before clause (a) and substituting the following:
Same
(3.1) Despite any provision of this or any other Act, when the Minister has knowledge or suspects that a person is, or within 365 days will become, indebted or liable to make any payment to,
. . . . .
(4) Subsections 17 (6) and (7) of the Act are repealed and the following substituted:
Service of garnishee
(6) If a person (a "third party") who is, or within 365 days will become, indebted or liable to make a payment to a person liable to make a payment or remittance under this Act carries on business under a name or style other than the third party's own name, the letter under this section from the Minister to the third party may be addressed using the name or style under which the third party carries on business and, in the case of personal service, the letter shall be deemed to have been validly served if it is left with an adult employed at the place of business of the addressee.
Same
(7) If persons ("partners") who are, or within 365 days will become, indebted or liable to make a payment to a person liable to make a payment or remittance under this Act carry on business in partnership, the letter under this section from the Minister to the partners may be addressed to the partnership name and, in the case of personal service, the letter shall be deemed to have been validly served if it is served on a partner or left with an adult employed at the place of business of the partnership.
(5) Subsection 17 (9) of the Act, as amended by the Statutes of Ontario, 1998, chapter 30, section 28, is further amended by striking out "Ontario Court (General Division)" and substituting "Superior Court of Justice".
100. (1) Subsection 17.1 (5) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 18, section 2, is amended,
(a) by striking out "third anniversary" and substituting "fifth anniversary"; and
(b) by striking out "three-year period" wherever it occurs and substituting in each case "five-year period".
(2) Subsection 17.1 (6) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 18, section 2, is repealed and the following substituted:
Same
(6) If taxes remain outstanding and unpaid at the end of the period, or its renewal, referred to in subsection (5), the Minister may register a renewal notice of lien and charge; the lien and charge remains in effect for a five-year period from the date the renewal notice is registered until the amount is fully paid, and shall be deemed to be continuously registered since the initial notice of lien and charge was registered under subsection (2).
101. (1) The English version of clause 18 (1) (c) of the Act, as amended by the Statutes of Ontario, 1991, chapter 49, section 18 and 1998, chapter 30, section 30, is further amended by striking out "retailer" and substituting "retail dealer".
(2) The English version of subsection 18 (2) of the Act, as amended by the Statutes of Ontario, 1991, chapter 49, section 18 and 1998, chapter 30, section 30, is further amended by striking out "retailer" in the portion before clause (a) and substituting "retail dealer".
102. (1) Subsection 21 (1) of the Act, as amended by the Statutes of Ontario, 1991, chapter 49, section 19 and 1994, chapter 18, section 2, is repealed.
(2) Subsection 21 (2) of the Act, as re-enacted by the Statutes of Ontario, 1991, chapter 49, section 19 and amended by 1994, chapter 18, section 2, is repealed and the following substituted:
Refund
(2) The Minister may refund the tax paid on clear fuel used to operate auxiliary equipment of a motor vehicle to which a number plate is attached as required under the Highway Traffic Act,
(a) if the use of the auxiliary equipment occurs in Ontario;
(b) if the auxiliary equipment is powered using fuel from the same fuel tank that is used to power the propulsion of the motor vehicle;
(c) if the power from the auxiliary equipment is not used to propel the motor vehicle;
(d) if the motor vehicle is not principally used by its owner or operator to transport passengers, whether or not for hire, or for the pleasure or recreation of the owner or operator.
(3) Subsection 21 (2.1) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 18, section 2, is repealed.
(4) Section 21 of the Act, as amended by the Statutes of Ontario, 1991, chapter 49, section 19, 1994, chapter 18, section 2 and 1998, chapter 30, section 32, is further amended by adding the following subsections:
Exception
(4.1) Despite subsection (3), invoices are not required to accompany an application for a refund for a particular calendar year if the total of all refunds sought by the applicant for the calendar year is not more than $500.
Same
(4.2) The applicant for a refund is required to keep the invoices referred to in subsection (4.1) for seven years after the date of the application and is required to give the invoices to the Minister upon request.
103. The Act is amended by adding the following section:
Agreement with the Federal Government
28.1.1 (1) The Minister, on behalf of the Province, may enter into an agreement with the Federal Government respecting the administration and enforcement of this Act.
Effect of agreement
(2) The Federal Government is acting as the agent of the Province when providing services under the agreement.
Compensation
(3) Amounts owing to the Federal Government under the agreement for providing services shall be paid from amounts collected under the agreement on behalf of the Minister, if the agreement so provides.
Protection from liability
(4) No action or proceeding shall be commenced against a person who is acting as agent of the Province under subsection (2) for any act that is in good faith done or omitted in the performance or intended performance of the agent's duties under this Act or the agreement or in the exercise or intended exercise of the agent's powers under this Act or the agreement.
Liability of the Crown
(5) Despite subsections 5 (2) and (4) of the Proceedings Against the Crown Act, subsection (4) does not relieve the Province of a liability to which the Province would otherwise be subject in respect of a tort.
Definitions
(6) In this section,
"Federal Government" means Her Majesty in right of Canada or an agency of Her Majesty in right of Canada; ("gouvernement fédéral")
"Province" means Her Majesty in right of Ontario. ("Province")
104. Subsection 29 (2) of the Act, as amended by the Statutes of Ontario, 1991, chapter 49, section 25, 1997, chapter 19, section 7 and 1998, chapter 30, section 38, is further amended by adding the following clause:
(w) prescribing one or more methods for calculating unverifiable losses and excess unverifiable losses, for the purposes of subsection 13 (4.2), and prescribing one or more thresholds for the purposes of that subsection.
Commencement
105. (1) Subject to subsections (2) and (3), this Part comes into force on the day this Act receives Royal Assent.
Same
(2) Subsection 102 (2) shall be deemed to have come into force on January 1, 2001.
Same
(3) Subsection 102 (4) shall be deemed to have come into force on May 9, 2001.
PART XI
GASOLINE TAX ACT
106. The definition of "operator" in subsection 1 (1) of the Gasoline Tax Act, as enacted by the Statutes of Ontario, 1992, chapter 9, section 1 and amended by 1994, chapter 18, section 3, is repealed and the following substituted:
"operator" means, when used with reference to a motor vehicle other than a motor vehicle designed for use as a vessel, an aircraft or railway equipment operated on rails,
(a) the registered owner, if the motor vehicle is not leased to another person or, if leased, is leased to another person for not more than 30 consecutive days,
(b) the lessee, if the motor vehicle is leased for more than 30 consecutive days, unless the lessee has entered into a written agreement with the lessor in which the lessor agrees to account for the tax imposed by this Act on all gasoline used by the motor vehicle during the term of the lease, or
(c) the lessor, if the lessor has entered into a written agreement in which the lessor agrees to account for and remit to the Minister the tax imposed by this Act on gasoline used by the motor vehicle during the term of the lease; ("utilisateur")
107. The Act is amended by adding the following section:
Exemptions under other Acts
1.1 No person otherwise subject to tax under this Act is exempt therefrom by reason of an exemption granted to the person, or to or in respect of the personal or real property of the person, by or under another Act, unless the other Act expressly mentions this Act.
108. The English version of subsection 3.4 (2) of the Act, as enacted by the Statutes of Ontario, 1992, chapter 9, section 3, is amended by striking out "retail dealer" and substituting "retailer".
109. Subsection 4 (4) of the Act, as amended by the Statutes of Ontario, 1994, chapter 18, section 3, is repealed and the following substituted:
Payment
(4) The remittance required by subsection (3) shall be made to a person authorized by the Minister and the authorized person shall forward it to the Minister in accordance with the requirements imposed by the Minister when giving the authorization.
110. (1) Subsection 5 (12) of the Act, as enacted by the Statutes of Ontario, 1992, chapter 9, section 6, is amended by striking out "Ontario Court (General Division)" and substituting "Superior Court of Justice".
(2) Subsection 5 (14) of the Act is amended by striking out "Ontario Court (General Division)" in the portion before clause (a) and substituting "Superior Court of Justice".
111. (1) Section 11 of the Act, as amended by the Statutes of Ontario, 1992, chapter 9, section 7, 1994, chapter 18, section 3, 1996, chapter 10, section 11, 1997, chapter 19, section 8 and 1998, chapter 30, section 44, is further amended by adding the following subsection:
Assessment re amounts held in trust
(6.1) The Minister may assess the amount that a person is responsible to pay under subsection 18 (6) and the assessed amount shall be deemed to be tax collectable or collected, as the case may be, by the person.
(2) Subsection 11 (7) of the Act, as amended by the Statutes of Ontario, 1992, chapter 9, section 7 and 1994, chapter 18, section 3, is further amended by striking out "subsection (5), (5.2), (6), (12), (15) or (15.1)" and substituting "this section".
(3) Section 11 of the Act, as amended by the Statutes of Ontario, 1992, chapter 9, section 7, 1994, chapter 18, section 3, 1996, chapter 10, section 11, 1997, chapter 19, section 8 and 1998, chapter 30, section 44, is further amended by adding the following subsection:
Penalty for excess losses
(7.1) Every person who has excess unverifiable losses, determined in accordance with the regulations, shall pay a penalty, when assessed therefor, equal to the tax that would have been collectable by the person if the quantity of gasoline that exceeds the prescribed threshold for an unverifiable loss had been sold to a purchaser liable to pay tax under this Act.
112. The Act is amended by adding the following section:
Assessment, non-arm's length transfers
13.1 (1) In this section,
"member of his or her family" means, in relation to a transferor, the parent, spouse, grandparent, child, grandchild, son-in-law, daughter-in-law, father-in-law or mother-in-law of the transferor; ("membre de sa famille")
"same-sex partner" means same-sex partner as defined in section 29 of the Family Law Act; ("partenaire de même sexe")
"spouse" means spouse as defined in section 29 of the Family Law Act. ("conjoint")
Liability to pay
(2) If at any time a person transfers property (including money), either directly or indirectly, by means of a trust or by any other means, to a member of his or her family, to his or her same-sex partner, to an individual who is less than 18 years old at the time of the transfer, or to another person with whom the transferor is not dealing at arm's length, the transferor and transferee are jointly and severally liable to pay under this Act the amount determined under subsection (4).
Same
(3) For the purpose of subsection (2), persons shall be deemed not to deal with each other at arm's length if, by reason of subsections 251 (1) to (6) of the Income Tax Act (Canada), they are related to each other for the purposes of that Act.
Amount payable
(4) The amount referred to in subsection (2) is the lesser of "A" and "B" where,
"A" is the amount, if any, by which the fair market value of the property transferred, at the time of the transfer, exceeds the fair market value, at the time of the transfer, of the consideration given by the transferee for the transfer, and
"B" is the total of all amounts, each of which is,
(a) any tax payable by the transferor under this Act at the time of the transfer or at any previous time but not paid,
(b) any tax collected, collectable or payable but not remitted or transmitted as required under this Act by the transferor for the reporting period during which the transfer took place or any previous reporting period,
(c) any penalty or interest for which the transferor is liable under this Act at the time of the transfer.
Same
(5) Nothing in subsection (2) or (4) limits the liability of the transferor or transferee under any other provision of this Act.
Assessment
(6) The Minister may assess a transferee at any time in respect of any amount payable by reason of this section, and sections 13 and 14 apply, with necessary modifications, to the assessment.
Effect of payment
(7) If a transferor and transferee are jointly and severally liable to pay an amount under this section,
(a) a payment by the transferee on account of the transferee's liability discharges the joint liability, to the extent of the payment; and
(b) a payment by the transferor on account of the transferor's liability under this Act discharges the transferee's liability under this section to the extent that the payment reduces the balance of the transferor's liability under this Act to an amount less than the amount of the transferee's liability under this section.
Exception
(8) Subsection (2) does not apply with respect to a transfer of property (including money) between spouses or same-sex partners,
(a) under a decree, order or judgment of a competent tribunal; or
(b) under a written separation agreement if, at the time of the transfer, the transferor and transferee were living separate and apart as a result of a breakdown of their relationship.
113. (1) Subsection 14 (1) of the Act, as re-enacted by the Statutes of Ontario, 1992, chapter 9, section 9 and amended by 1998, chapter 30, section 47, is further amended by striking out "Ontario Court (General Division)" and substituting "Superior Court of Justice".
(2) Subsection 14 (2) of the Act, as re-enacted by the Statutes of Ontario, 1998, chapter 30, section 47, is amended by striking out "Ontario Court (General Division)" in the portion before clause (a) and substituting "Superior Court of Justice".
(3) Subsection 14 (5) of the Act is amended,
(a) by striking out "Ontario Court (General Division)" wherever it occurs and substituting in each case "Superior Court of Justice"; and
(b) by striking out "notice of disallowance" in the English version and substituting "statement of disallowance".
(4) Subsection 14 (9) of the Act is amended by striking out "Ontario Court (General Division)" and substituting "Superior Court of Justice".
114. Clause 19 (1) (b) of the Act is amended by striking out "Ontario Court (General Division)" and substituting "Superior Court of Justice".
115. (1) Subsection 19.1 (5) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 18, section 3, is amended,
(a) by striking out "third anniversary" and substituting "fifth anniversary"; and
(b) by striking out "three-year period" wherever it occurs and substituting in each case "five-year period".
(2) Subsection 19.1 (6) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 18, section 3, is repealed and the following substituted:
Same
(6) If taxes remain outstanding and unpaid at the end of the period, or its renewal, referred to in subsection (5), the Minister may register a renewal notice of lien and charge; the lien and charge remains in effect for a five-year period from the date the renewal notice is registered, until the amount is fully paid, and shall be deemed to be continuously registered since the initial notice of lien and charge was registered under subsection (2).
116. (1) Subsection 20 (1) of the Act, as amended by the Statutes of Ontario, 1994, chapter 18, section 3, is repealed and the following substituted:
Garnishment
(1) When the Minister has knowledge or suspects that a person (a "third party") is, or within 365 days will become, indebted or liable to make any payment to a person (a "tax debtor") liable to make a payment or remittance under this Act, the Minister may, by registered letter or by letter served personally, require the third party to promptly pay to the Minister any money that is otherwise payable by the third party to the tax debtor in whole or in part during the 365 days after the third party receives the letter.
(2) Subsection 20 (2.1) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 30, section 50, is amended by striking out the portion before clause (a) and substituting the following:
Same
(2.1) Despite any provision of this or any other Act, when the Minister has knowledge or suspects that a person is, or within 365 days will become, indebted or liable to make any payment to,
. . . . .
(3) Subsections 20 (4) and (5) of the Act are repealed and the following substituted:
Service of garnishee
(4) If a person (a "third party") who is, or within 365 days will become, indebted or liable to make a payment to a person liable to make a payment or remittance under this Act, carries on business under a name or style other than the third party's own name, the letter under this section from the Minister to the third party may be addressed using the name or style under which the third party carries on business and, in the case of personal service, the letter shall be deemed to have been validly served if it is left with an adult employed at the place of business of the addressee.
Same
(5) If persons ("partners") who are, or within 365 days will become, indebted or liable to make a payment to a person liable to make a payment or remittance under this Act, carry on business in partnership, the letter under this section from the Minister to the partners may be addressed to the partnership name and, in the case of personal service, the letter shall be deemed to have been validly served if it is served on a partner or left with an adult employed at the place of business of the partnership.
(4) Subsection 20 (7) of the Act, as enacted by the Statutes of Ontario, 1992, chapter 9, section 13 and amended by 1994, chapter 18, section 3, is further amended by striking out "Ontario Court (General Division)" and substituting "Superior Court of Justice".
117. Subsection 28.1 (1) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 18, section 3, is amended by striking out "section 9" and substituting "subsection 9 (1)".
118. The Act is amended by adding the following section:
Agreement with the Federal Government
32.1 (1) The Minister, on behalf of the Province, may enter into an agreement with the Federal Government respecting the administration and enforcement of this Act.
Effect of agreement
(2) The Federal Government is acting as the agent of the Province when providing services under the agreement.
Compensation
(3) Amounts owing to the Federal Government under the agreement for providing services shall be paid from amounts collected under the agreement on behalf of the Minister, if the agreement so provides.
Protection from liability
(4) No action or proceeding shall be commenced against a person who is acting as agent of the Province under subsection (2) for any act that is in good faith done or omitted in the performance or intended performance of the agent's duties under this Act or the agreement or in the exercise or intended exercise of the agent's powers under this Act or the agreement.
Liability of the Crown
(5) Despite subsections 5 (2) and (4) of the Proceedings Against the Crown Act, subsection (4) does not relieve the Province of a liability to which the Province would otherwise be subject in respect of a tort.
Definitions
(6) In this section,
"Federal Government" means Her Majesty in right of Canada or an agency of Her Majesty in right of Canada; ("gouvernement fédéral")
"Province" means Her Majesty in right of Ontario. ("Province")
119. Subsection 33 (2) of the Act, as amended by the Statutes of Ontario, 1991, chapter 13, section 8, 1992, chapter 9, section 22, 1996, chapter 10, section 15 and 1997, chapter 19, section 8, is further amended by adding the following clause:
(g) prescribing one or more methods for calculating unverifiable losses and excess unverifiable losses, for the purposes of subsection 11 (7.1), and prescribing one or more thresholds for the purposes of that subsection;
Commencement
120. (1) Subject to subsection (2), this Part comes into force on the day this Act receives Royal Assent.
Same
(2) Section 117 shall be deemed to have come into force on March 1, 2000.
PART XII
GO TRANSIT ACT, 2001
AND GREATER TORONTO SERVICES
BOARD ACT, 1998
Enactment
121. The GO Transit Act, 2001, as set out in Schedule A, is hereby enacted.
Repeal
122. The Greater Toronto Services Board Act, 1998, as amended by the Statutes of Ontario, 2000, chapter 5, section 13, is repealed.
Commencement
123. (1) Subject to subsection (2), this Part comes into force on the day this Act receives Royal Assent.
Same
(2) Section 122 comes into force on January 1, 2002.
PART XIII
HIGHWAY 407 EAST
COMPLETION ACT, 2001
Enactment
124. The Highway 407 East Completion Act, 2001, as set out in Schedule B, is hereby enacted.
Commencement
125. This Part comes into force on the day this Act receives Royal Assent.
PART XIV
INCOME TAX ACT
126. The Table to clause 1 (6) (h) of the Income Tax Act, as amended by the Statutes of Ontario, 1993, chapter 29, section 1 and 1999, chapter 9, section 115, is further amended by striking out "Ontario Court (General Division)" wherever it occurs in Column 2 and substituting in each case "Superior Court of Justice".
127. (1) Paragraph 9 of subsection 3 (1) of the Act, as re-enacted by the Statutes of Ontario, 2001, chapter 8, section 35, is amended by striking out "2001 and 2002 taxation years" in the portion before subparagraph i and substituting "2001 taxation year".
(2) Paragraph 10 of subsection 3 (1) of the Act, as enacted by the Statutes of Ontario, 2001, chapter 8, section 35, is repealed and the following substituted:
10. The additional tax for the 2002 taxation year is 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 $3,685, and
ii. 36 per cent of the amount, if any, by which the gross tax amount of the individual for the taxation year exceeds $4,648.
11. The additional tax for the 2003 and each subsequent taxation year is 56 per cent of the amount, if any, by which the gross tax amount of the individual for the taxation year exceeds $4,648.
128. (1) The definitions of "lowest tax rate" and "middle tax rate" in subsection 4 (1) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 10, section 13, are repealed and the following substituted:
"lowest tax rate" means,
(a) 6.37 per cent for the 2000 taxation year,
(b) 6.16 per cent for the 2001 taxation year,
(c) 6.05 per cent for the 2002 taxation year, and
(d) 5.65 per cent for the 2003 and each subsequent taxation year; ("taux d'imposition le moins élevé")
"middle tax rate" means,
(a) 9.62 per cent for the 2000 taxation year,
(b) 9.22 per cent for the 2001 taxation year,
(c) 9.15 per cent for the 2002 taxation year, and
(d) 8.85 per cent for the 2003 and each subsequent taxation year; ("taux d'imposition moyen")
(2) The definitions of "lowest tax rate" and "middle tax rate" in subsection 4 (1) of the Act, as set out in the Statutes of Ontario, 2001, chapter 8, subsection 36 (1), are repealed.
(3) Subsection 4 (3.2) of the Act, as re-enacted by the Statutes of Ontario, 2000, chapter 42, section 50, is amended by adding the following paragraph:
12. For the purposes of determining the amounts of unused credits that may be transferred for a taxation year ending after December 31, 2000 by a dependant, spouse or common-law partner who is resident in a province other than Ontario on the last day of the taxation year to an individual who is resident in Ontario on the last day of the taxation year, the individual may deduct the amount that the individual would be entitled to deduct under this Act if the dependant, spouse or common-law partner were resident in Ontario on the last day of the taxation year.
(4) Clause 4 (3.3) (a) of the Act, as re-enacted by the Statutes of Ontario, 2000, chapter 42, section 50, is amended by striking out "under subsections (3.1), (3.4), (3.5), (4) and (4.1)" and substituting "under subsections (3.1), (3.4), (3.4.1), (3.5), (3.5.1) and (4.1)".
(5) The definition of "C" in subsection 4 (3.3.1) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 50, is repealed and the following substituted:
"C" is the amount equal to 37.5 per cent of that portion, if any, of the amount deducted by the individual under section 120.2 of the Federal Act for the taxation year that is in respect of a prior taxation year, to the extent it has not been included in determining the amount of "B" for a taxation year if,
(a) that prior taxation year ends after December 31, 1999 and is one of the seven preceding taxation years, and
(b) the individual was not resident in Ontario at the end of that prior taxation year but was resident at that time in another province, and
. . . . .
(6) Section 4 of the Act, as amended by the Statutes of Ontario, 1992, chapter 25, section 2, 1993, chapter 29, section 4, 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, 1999, chapter 9, section 117, 2000, chapter 10, section 13, 2000, chapter 42, section 50, and 2001, chapter 8, section 36, is further amended by adding the following subsections:
Minimum tax carry-forward, after 2000
(3.3.2) No amount may be deducted by an individual under subsection (3.3) for a taxation year ending after December 31, 2000 if the individual is required to pay an amount under section 4.4 for the taxation year.
Additional deduction
(3.3.3) In determining the amounts for a taxation year of "A" and "C" in the formula in subsection (3.3.1), the individual may include an additional amount equal to 37.5 per cent of the amount deducted by the individual under section 120.2 of the Federal Act for a prior taxation year if,
(a) the amount was not included by the individual in determining the amount of a deduction under subsection (3.3) for another taxation year because,
(i) the amount determined under clause (3.3) (a) for that other taxation year was less than the amount determined under clause (3.3) (b) for that year, or
(ii) the individual elected not to include the amount for that year;
(b) no additional amount in respect of the amount has been included under this subsection in the amounts of "A" and "C" in the formula in subsection (3.3.1) for a prior taxation year;
(c) the amount of "A" or "C" in the formula in subsection (3.3.1) was in respect of one of the seven preceding taxation years;
(d) each of the deductions for a prior taxation year under section 120.2 of the Federal Act that is referred to in the definitions of "A" and "C" in the formula in subsection (3.3.1) was multiplied by the ratio of the individual's income earned in that prior taxation year in Ontario to the amount of the individual's income for that year; and
(e) the additional amount to be included under this subsection in the amount of "A" and "C" in the formula in subsection (3.3.1) is not included in determining the amount of "T" in the formula in subsection (4).
Same
(3.3.4) In the determining the amount for a taxation year of "B" in the formula in subsection (3.3.1), the individual may include an additional amount equal to the deduction for income earned outside Ontario determined under subsection (4) that is in respect of "B" in the formula in subsection (3.3.1) for a prior taxation year if,
(a) the amount was not included by the individual in determining the amount of a deduction under subsection (3.3) for another taxation year;
(b) no additional amount in respect of the amount has been included under this subsection in the amount of "B" in the formula in subsection (3.3.1) for a prior taxation year;
(c) the amount of "B" in the formula in subsection (3.3.1), before the application of this subsection, was determined in any of the seven preceding taxation years; and
(d) the additional amount to be included under this subsection in the amount of "B" in the formula in subsection (3.3.1) is not included in determining the amount of "T" in the formula in subsection (4).
(7) Subclause 4 (6) (a) (i) of the Act is amended by striking out "under subsection 126 (1) or 180.1 (1.1) of that Act" and substituting "under subsection 126 (1), (2.2), (2.21), (2.22), (2.23), (3) or 180.1 (1.1) of that Act".
129. (1) Subsection 4.1 (1) of the Act, as re-enacted by the Statutes of Ontario, 2000, chapter 10, section 14, is amended by adding the following paragraphs:
4. A × E/T × 0.125
5. A × F/T × 0.11
6. A × G/T × 0.095
7. A × H/T × 0.08
(2) The definition of "D" in subsection 4.1 (2) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 10, section 14, is repealed and the following substituted:
"D" is the number of days in the taxation year that are after December 31, 2000 and before October 1, 2001,
(3) Subsection 4.1 (2) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 10, section 14, is amended by adding the following definitions:
"E" is the number of days in the taxation year that are after September 30, 2001 and before January 1, 2003,
"F" is the number of days in the taxation year that are after December 31, 2002 and before January 1, 2004,
"G" is the number of days in the taxation year that are after December 31, 2003 and before January 1, 2005,
"H" is the number of days in the taxation year that are after December 31, 2004, and
. . . . .
130. (1) Subsection 7 (1) of the Act, as re-enacted by the Statutes of Ontario, 1992, chapter 18, section 55 and amended by 1993, chapter 29, section 5, is repealed and the following substituted:
No tax payable
(1) No tax is payable under this Act by an individual for a taxation year if the amount of tax that would otherwise be payable by the individual for the year does not exceed the individual's personal amount as determined,
(a) in the prescribed manner, if the taxation year commences before January 1, 2001; or
(b) under this section, if the taxation year ends after December 31, 2000.
(2) The English version of subsection 7 (2.1) of the Act, as enacted by the Statutes of Ontario, 1993, chapter 29, section 5, is amended by inserting "or common-law partner" after "cohabiting spouse" wherever it occurs.
(3) Section 7 of the Act, as amended by the Statutes of Ontario, 1992, chapter 18, section 55, 1993, chapter 29, section 5, 1996, chapter 1, Schedule C, section 7, 1996, chapter 18, section 3, 1998, chapter 34, section 68 and 1999, chapter 9, section 119, is further amended by adding the following subsections:
Personal amount
(2.2) An individual's personal amount for a taxation year ending after December 31, 2000 is the amount calculated using the formula:
A + B + C
in which,
"A" is the amount of the basic reduction for the taxation year,
"B" is the sum of all amounts each of which is the eligible amount for the taxation year for a child who is a dependant of the individual and who is under 18 years of age at any time in the taxation year, and
"C" is the sum of all amounts each of which is the eligible amount for the taxation year in respect of a dependant of the individual who is infirm or disabled.
Amounts for 2001
(2.3) For the 2001 taxation year,
(a) the amount of the basic reduction is $156; and
(b) the eligible amount is $317 for,
(i) each child who is a dependant of an individual and who is under 18 years of age at any time in the taxation year, and
(ii) each infirm or disabled dependant of an individual.
Basic reduction, 2002 and subsequent taxation years
(2.4) The basic reduction for the 2002 or a subsequent taxation year is calculated using the formula,
D + [D × (E/F _ 1)]
in which,
"D" is the basic reduction for the prior taxation year or, if the basic reduction for the prior taxation year was rounded to a whole dollar amount under subsection (2.6), the amount that would be the basic reduction for the prior taxation year if the amount had not been rounded to a whole dollar amount,
"E" is the Consumer Price Index for Ontario, as determined under subsection 4.0.2 (4), for the 12-month period ending on September 30 of the last calendar year ending before the start of the taxation year, and
"F" is the Consumer Price Index for Ontario, as determined under subsection 4.0.2 (4), for the 12-month period ending the day before the start of the 12-month period described in the definition of "E".
Eligible amount, 2002 and subsequent taxation years
(2.5) The eligible amount for the 2002 or a subsequent taxation year for a dependant described in subsection (2.2) is calculated using the formula,
G + [G × (E/F _ 1)]
in which,
"G" is the eligible amount for the prior taxation year or, if the eligible amount for the prior taxation year was rounded to a whole dollar amount under subsection (2.6), the amount that would be the eligible amount for the prior taxation year if the amount had not been rounded to a whole dollar amount,
"E" is the Consumer Price Index for Ontario, as determined under subsection 4.0.2 (4), for the 12-month period ending on September 30 of the last calendar year ending before the start of the taxation year, and
"F" is the Consumer Price Index for Ontario, as determined under subsection 4.0.2 (4), for the 12-month period ending the day before the start of the 12-month period described in the definition of "E".
Rounding
(2.6) If the basic reduction for a taxation year calculated under subsection (2.4) or the eligible amount for the year calculated under subsection (2.5) is not a whole dollar amount, it must be rounded to the nearest whole dollar or, if it is 50 cents less than a whole dollar amount, it must be rounded up to that whole dollar amount.
Rules, dependants
(2.7) An individual may include an amount in respect of a dependant in the calculation of "B" for a taxation year in subsection (2.2) only if,
(a) the dependant was a qualified dependant at any time in the taxation year; and
(b) the individual or the individual's cohabiting spouse or common-law partner, if any, with whom the individual resided on December 31 of the taxation year was the eligible individual in respect of the dependant,
(i) immediately before the dependant ceased to be a qualified dependant of the eligible individual, and the dependant did not become the qualified dependant of any other eligible individual during the taxation year, or
(ii) at the end of the taxation year, in any other case.
Rules, infirm or disabled dependants
(2.8) Subject to subsection (2.9), an individual may include an amount in respect of an infirm or disabled dependant in the calculation of "C" for a taxation year in subsection (2.2) only if,
(a) no other person has included an amount in respect of the dependant in determining the amount included in "B" or "C" in subsection (2.2) in the calculation of his or her personal amount for the taxation year;
(b) the individual or the individual's cohabiting spouse or common-law partner, if any, with whom the individual resided on December 31 of the taxation year is deducting an amount under subsection 118.3 (2) or paragraph 118 (1) (b) or (d) of the Federal Act for the taxation year in respect of the dependant; and
(c) the dependant, if he or she is the individual's cohabiting spouse or common-law partner at any time in the taxation year, is entitled to a deduction under subsection 118.3 (1) of the Federal Act for the taxation year and is transferring some or all of the deduction to the individual under section 118.8 of the Federal Act.
Rules, non-cohabiting spouses, etc.
(2.9) If two individuals who are not cohabiting spouses or common-law partners are each entitled to deduct and are deducting an amount under subsection 118.3 (2) or paragraph 118 (1) (d) of the Federal Act for the taxation year in respect of the same dependant who is 19 years of age or older, the following rules apply:
1. The individual who is deducting more than 50 per cent of the amount deductible under subsection 118.3 (2) or paragraph 118 (1) (d) of the Federal Act in respect of the dependant may include an amount in respect of the dependant in the calculation of "C" in subsection (2.2) for the taxation year.
2. If each individual is deducting 50 per cent of the amount deductible under subsection 118.3 (2) or paragraph 118 (1) (d) of the Federal Act in respect of the dependant, only the individual with the lower income may include an amount in respect of the dependant in the calculation of "C" in subsection (2.2) for the taxation year.
(4) The English version of subsection 7 (3.1) of the Act, as enacted by the Statutes of Ontario, 1993, chapter 29, section 5, is repealed and the following substituted:
Federal definitions
(3.1) For the purposes of this section and section 8,
"cohabiting spouse or common-law partner", "eligible individual" and "qualified dependant" have the meanings assigned by section 122.6 of the Federal Act.
(5) Subsection 7 (4) of the Act, as re-enacted by the Statutes of Ontario, 1993, chapter 29, section 5, is amended by adding the following clause:
(d) the individual is a trust.
(6) Subsection 7 (5) of the Act, as enacted by the Statutes of Ontario, 1996, chapter 1, Schedule C, section 7 and amended by 1998, chapter 34, section 68, is repealed.
131. (1) Clause (c) of the definition of "individual" in subsection 8 (1) of the Act, as amended by the Statutes of Ontario, 1992, chapter 18, section 55, 1993, chapter 29, section 6, 1996, chapter 1, Schedule C, section 8, 1996, chapter 29, section 9, 1997, chapter 43, Schedule B, section 4 and 1998, chapter 34, section 69, is further amended by striking out the portion before subclause (i) and substituting the following:
(c) except for the purposes of subsections (8.1), (8.3), (8.4), (9), (15), (15.1), (15.2), (15.3), (15.4) and (15.6), a person who died in the taxation year or a person who is, on December 31 in the taxation year,
. . . . .
(2) Clause (c) of the definition of "individual" in subsection 8 (1) of the Act, as amended by the Statutes of Ontario, 1992, chapter 18, section 55, 1993, chapter 29, section 6, 1996, chapter 1, Schedule C, section 8, 1996, chapter 29, section 9, 1997, chapter 43, Schedule B, section 4 and 1998, chapter 34, section 69, is further amended by striking out the portion before subclause (i) and substituting the following:
(c) except for the purposes of subsections (8.1), (8.3), (8.4), (9), (15), (15.1), (15.2), (15.3), (15.4), (15.5) and (15.6), a person who died in the taxation year or a person who is, on December 31 in the taxation year,
. . . . .
(3) The English version of the definition of "occupancy cost" in subsection 8 (1) of the Act, as re-enacted by the Statutes of Ontario, 1993, chapter 29, section 6, is amended by striking out "cohabiting spouse" in clause (a) and in subclauses (b) (i) and (ii) and substituting in each case "cohabiting spouse or common-law partner".
(4) The English version of subsection 8 (2) of the Act, as re-enacted by the Statutes of Ontario, 1993, chapter 29, section 6, is amended by striking out "cohabiting spouse" in clause (a) and in subclause (b) (i) and substituting in each case "cohabiting spouse or common-law partner".
(5) The English version of clause 8 (3) (b) of the Act, as re-enacted by the Statutes of Ontario, 1993, chapter 29, section 6, is amended by striking out "cohabiting spouse" in subclauses (ii) and (iii) and substituting in each case "cohabiting spouse or common-law partner".
(6) The English version of clause 8 (3.1) (b) of the Act, as re-enacted by the Statutes of Ontario, 1993, chapter 29, section 6, is amended by striking out "cohabiting spouse" in subclauses (ii) and (iii) and substituting in each case "cohabiting spouse or common-law partner".
(7) The English version of subclause 8 (4) (a) (ii) of the Act, as re-enacted by the Statutes of Ontario, 1993, chapter 29, section 6, is amended by striking out "cohabiting spouse" wherever it appears and substituting in each case "cohabiting spouse or common-law partner".
(8) The English version of subsection 8 (5) of the Act, as re-enacted by the Statutes of Ontario, 1993, chapter 29, section 6, is amended by striking out "cohabiting spouse" and substituting "cohabiting spouse or common-law partner".
(9) The English version of subsection 8 (7) of the Act, as re-enacted by the Statutes of Ontario, 1998, chapter 34, section 69, is amended by striking out "cohabiting spouse" and substituting "cohabiting spouse or common-law partner".
(10) The English version of subsection 8 (8) of the Act, as re-enacted by the Statutes of Ontario, 1993, chapter 29, section 6 and amended by 1997, chapter 19, section 9, is further amended by striking out "cohabiting spouse" wherever it appears and substituting in each case "cohabiting spouse or common-law partner".
(11) 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, 1996, chapter 24, section 13, 1996, chapter 29, section 9, 1997, chapter 43, Schedule B, section 4 and 1998, chapter 34, section 69, is further amended by striking out "(15.2) or (15.3)" in the portion before clause (a) and substituting "(15.2), (15.3), (15.4) or (15.6)".
(12) 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, 1996, chapter 1, Schedule C, section 8, 1996, chapter 24, section 13, 1996, chapter 29, section 9, 1997, chapter 19, section 9, 1997, chapter 43, Schedule B, section 4, 1998, chapter 5, section 3, 1998, chapter 9, section 81, 1998, chapter 34, section 69, 1999, chapter 9, section 120, 2000, chapter 42, section 55 and 2001, chapter 8, section 40, is further amended by adding the following subsection:
Ontario focused flow-through share tax credit
(15.6) An eligible individual may deduct from the amount of his or her tax otherwise payable under this Act for a taxation year ending after December 31, 2000 an amount not exceeding the amount of his or her Ontario focused flow-through share tax credit determined under section 8.4.3 for the taxation year.
(13) Paragraphs 2 and 3 of subsection 8 (17) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 43, Schedule B, section 4 and amended by 1998, chapter 34, section 69, and paragraphs 7 and 8 of subsection 8 (17) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule B, section 4 and amended by 1998, chapter 34, section 69, are repealed and the following substituted:
2. No deduction, other than a deduction claimed under any of subsections (15), (15.1), (15.2), (15.3) and (15.4), may be claimed or allowed under this section in a return filed on behalf of the individual by a trustee in bankruptcy under paragraph 128 (2) (e) or (h) of the Federal Act.
3. Any deduction to which the individual may be entitled under this section, other than a deduction claimed under any of subsections (15), (15.1), (15.2), (15.3) and (15.4), shall be claimed only for the last taxation year ending in or coinciding with the calendar year.
. . . . .
7. A deduction under any of subsections (15), (15.1), (15.2), (15.3) and (15.4) may be claimed for the taxation year in which the individual becomes eligible for the deduction and may be claimed in a return filed on behalf of the individual by a trustee in bankruptcy under paragraph 128 (2) (e) or (h) of the Federal Act if the individual becomes eligible for the deduction during the period when the trustee is deemed to be acting as agent for the individual for the purposes of the Federal Act.
8. If a deduction under any of subsections (15), (15.1), (15.2), (15.3) and (15.4) is claimed in a return filed by a trustee in bankruptcy under paragraph 128 (2) (e) or (h) of the Federal Act, no deduction under that subsection in respect of the same expenditures may be claimed in any other return filed in respect of the individual's income.
9. No amount may be deducted by an individual under subsection (15.6) in respect of expenditures incurred or deemed to be incurred by the individual in a taxation year during which the individual was at any time bankrupt, unless the individual was discharged absolutely from bankruptcy before the end of the taxation year.
132. The Act is amended by adding the following section:
Ontario focused flow-through share tax credit
8.4.3 (1) The amount of an eligible individual's Ontario focused flow-through share tax credit for a taxation year for the purposes of subsection 8 (15.6) is the sum of all amounts, each of which is an amount equal to five per cent of the amount of the individual's eligible Ontario exploration expenditures for the year in respect of an Ontario focused flow-through share that was issued by a mining exploration company and acquired by the eligible individual pursuant to an agreement made after October 17, 2000.
Eligible Ontario exploration expenditures
(2) The amount of an individual's eligible Ontario exploration expenditures for a year in respect of an Ontario focused flow-through share is the amount that would be the individual's flow-through mining expenditure in respect of the share for the taxation year, as determined under the definition of that term in subsection 127 (9) of the Federal Act, if,
(a) the reference to "Canada" in paragraph (f) of the definition of "Canadian exploration expense" in subsection 66.1 (6) of the Federal Act, as that definition applies for the purpose of the definition of "flow-through mining expenditure" in subsection 127 (9) of that Act, were read as a reference to "Ontario";
(b) the amount of the individual's flow-through mining expenditure for the taxation year were reduced by the amount of any government assistance or non-government assistance (other than any investment tax credit under subsection 127 (9) of the Federal Act) in respect of expenses included in the individual's flow-through mining expenditure for the year that, at the time of the filing of the individual's return of income for the year, the individual has received, is entitled to receive or can reasonably be expected to receive;
(c) paragraph (a) of the definition of "flow-through mining expenditure" in subsection 127 (9) of the Federal Act were read without reference to the words "and before 2004"; and
(d) the definition of "flow-through mining expenditure" in subsection 127 (9) of the Federal Act were read without reference to paragraph (e).
Application for tax credit
(3) No eligible individual may claim a tax credit under this section in respect of an Ontario focused flow-through share unless he or she,
(a) makes an application in the return required for the year under this Act;
(b) obtains a certificate in a form approved by the Minister from the mining exploration company that issued the share, setting out the amount of Canadian exploration expenditures renounced by the company in the taxation year to the holder of the share; and
(c) submits the application and certificate with the tax return required to be filed by the eligible individual under this Act for the taxation year for which the individual claims the tax credit.
Definitions
(4) In this section,
"eligible individual" means, in respect of a taxation year, an individual other than a trust who is resident in Ontario on the last day of the year and subject to tax under this Act throughout the year; ("particulier admissible")
"mining exploration company" means, in respect of a share issued by it, a corporation,
(a) that has a permanent establishment in Ontario at the time any expenditures are incurred that are renounced to the holder of the share, and
(b) that is a principal-business corporation as defined in subsection 66 (15) of the Federal Act; ("compagnie d'exploration minière")
"Ontario focused flow-through share" means a flow-through share, as defined in subsection 66 (15) of the Federal Act. ("action accréditive ciblée de l'Ontario")
133. (1) The English versions of the definitions of "adjusted earned income", "adjusted income", "cohabiting spouse" and "qualifying child care expenses" in subsection 8.5 (1) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 34, section 74, are repealed and the following substituted:
"adjusted earned income" of an individual for a base taxation year is the total of the earned income for the base taxation year of the individual and of the person who is the individual's cohabiting spouse or common-law partner for the purposes of subdivision a.1 of Division E of Part I of the Federal Act; ("revenu gagné modifié")
"adjusted income" of an individual for a base taxation year is the total of the income for the base taxation year, if no amount were included in respect of a gain from a disposition of property to which section 79 of the Federal Act applies in computing that income, of the individual and of the person who is the individual's cohabiting spouse or common-law partner for the purposes of subdivision a.1 of Division E of Part I of the Federal Act; ("revenu modifié")
"cohabiting spouse or common-law partner" means, in respect of an individual at any time, the person who, at that time, is the individual's cohabiting spouse or common-law partner for the purposes of subdivision a.1 of Division E of Part I of the Federal Act; ("conjoint visé")
"qualifying child care expenses" means, for a base taxation year in relation to a month, all child care expenses claimed by the individual or the individual's cohabiting spouse or common-law partner that are deductible and allowed as a deduction for the base taxation year under section 63 of the Federal Act; ("frais de garde d'enfants admissibles")
(2) The definition of "single parent" in subsection 8.5 (1) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 10, section 16, is repealed and the following substituted:
"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 or common-law partner. ("chef de famille monoparentale")
(3) The English version of paragraphs 1 and 2 of subsection 8.5 (2) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 34, section 74, are amended by striking out "cohabiting spouse" wherever it appears and substituting in each case "cohabiting spouse or common-law partner".
(4) The English version of clause 8.5 (4) (d) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 34, section 74, is amended by striking out "cohabiting spouse" wherever it appears and substituting in each case "cohabiting spouse or common-law partner".
(5) 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 and 2000, chapter 10, section 16, is further amended by adding the following subsection:
Special payment, 2001
(5.2) The overpayment on account of an individual's liability for tax under this Act for the 2001 taxation year in respect of a qualified dependant shall be deemed for the purposes of this section to include $100 in addition to the amount otherwise determined for the year under subsection (5), if the overpayment of tax determined under that subsection during the month ending on November 30, 2001 on account of the individual's liability for tax under this Act in respect of the qualified dependant exceeds zero.
(6) The English version of subsection 8.5 (6) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 34, section 74, is amended by striking out "cohabiting spouse" in the portion before clause (a) and substituting "cohabiting spouse or common-law partner".
(7) Subsection 8.5 (11) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 34, section 74, is amended by striking out "subsections (12), (13) and (18)" and substituting "subsections (11.1), (12), (13) and (18)".
(8) 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 and 2000, chapter 10, section 16, is further amended by adding the following subsection:
Payment of additional amount for 2001
(11.1) The Provincial Minister may pay to an eligible individual the total of all additional amounts to which the individual is entitled under subsection (5.2) in respect of qualified dependants by means of one lump sum payment, separate from and in addition to any other payments under this section.
(9) The English version of paragraphs 1, 2 and 3 of subsection 8.5 (14) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 34, section 74, are amended by striking out "cohabiting spouse" wherever it appears and substituting in each case "cohabiting spouse or common-law partner".
(10) The English version of subsection 8.5 (30) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 34, section 74, is repealed and the following substituted:
Cohabiting spouse or common-law partner liable
(30) If a person was the cohabiting spouse or common-law partner of an individual on the day the individual filed an application under this section, the individual and the person are jointly and severally liable to repay any amount that the individual is required to repay under this section in respect of the time period to which the application relates, if the person was the individual's cohabiting spouse or common-law partner at the time the amount was paid to the individual.
134. (1) Paragraph 5 of subsection 8.7 (1) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 58, is repealed and the following substituted:
5. The individual deducted an amount under paragraph 110 (1) (d), (d.01) or (d.1) of the Federal Act in respect of a benefit relating to the eligible stock option agreement in computing his or her income for the taxation year or a prior taxation year.
(2) Subclause 8.7 (5) (b) (i) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 58, is repealed and the following substituted:
(i) the individual's benefit under section 7 of the Federal Act for the taxation year in respect of an eligible stock option agreement, less any deduction claimed under paragraph 110 (1) (d), (d.01) or (d.1) of that Act in respect of the benefit in computing the individual's taxable income for the taxation year, or
. . . . .
(3) Section 8.7 of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 58, is amended by adding the following subsection:
First taxation year, amalgamated corporation
(15.1) For the purposes of subsection (10), if the taxation year in which the stock option agreement is entered into is the first taxation year of an employer ending after an amalgamation to which section 87 of the Federal Act applies, references to the taxation year before that year are read as references to the taxation year of each of the predecessor corporations, as referred to in section 87 of the Federal Act, that ended immediately before the amalgamation.
(4) Subsection 8.7 (21) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 58, is repealed and the following substituted:
Notice of benefit, Provincial Minister
(21) The eligible employer in respect of an eligible stock option agreement shall notify the Provincial Minister of the following information during each relevant calendar year:
1. The name, address and social insurance number of each individual,
i. who is deemed under section 7 of the Federal Act to receive a benefit in the year other than by reason of an election in a prior taxation year under subsection 7 (8) of the Federal Act in respect of an acquisition under the agreement, or
ii. who elects for the year to have subsection 7 (8) of the Federal Act apply in respect of an acquisition under the agreement.
2. The amount of any benefit deemed by section 7 of the Federal Act to be received in the calendar year by each individual referred to in subparagraph 1 i, other than a benefit that is reported as income in the calendar year as a result of an election in a prior taxation year under subsection 7 (8) of the Federal Act.
3. The amount of any benefit that would otherwise have been reported as income in that year by an individual referred to in subparagraph 1 ii if an election under subsection 7 (8) of the Federal Act had not been made.
4. Any valid revocation under subsection 7 (13) of the Federal Act of an election referred to in paragraph 3.
(5) Subsection 8.7 (23) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 58, is repealed and the following substituted:
Notice of benefit, employee
(23) The eligible employer shall notify the individual if,
(a) a benefit deemed to be received by the individual in a calendar year under section 7 of the Federal Act, other than by reason of an election in a prior taxation year under subsection 7 (8) of that Act, relates to an eligible stock option agreement; and
(b) an acquisition made in a calendar year, to which the individual elects to have subsection 7 (8) of the Federal Act apply, relates to an eligible stock option agreement.
(6) Paragraph 3 of subsection 8.7 (25) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 58, is repealed and the following substituted:
3. All amounts deducted in computing the individual's taxable income for the taxation year under paragraph 110 (1) (d), (d.01) or (d.1) of the Federal Act in respect of the benefits.
(7) Section 8.7 of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 58, is amended by adding the following subsection:
Filing of forms
(27.1) The individual shall file with the application such forms as the Provincial Minister may specify to verify that the individual is eligible to a refund under this section and the amount, if any, that the individual is entitled to receive under this section or section 8.8.
135. (1) Subsection 8.8 (1) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 58, is repealed and the following substituted:
Set-off
(1) If an individual who is entitled to a refund under section 8.7 is liable or is about to become liable to make a payment to the Crown in right of Ontario, the Provincial Minister may apply to that liability all or part of the refund and any interest payable in respect of the refund, instead of paying the refund and interest to the individual.
(2) Clause 8.8 (2) (a) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 58, is repealed and the following substituted:
(a) that begins on the day that is the later of,
(i) the day that is 45 days after the day that is the balance-due day of the taxpayer for the taxation year for the purposes of the Federal Act, and
(ii) the day the notice of assessment for the taxation year is issued by the Minister under section 152 of the Federal Act; and
. . . . .
(3) Subsection 8.8 (3) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 58, is repealed and the following substituted:
Repayment
(3) An individual who receives a refund under section 8.7 or interest on a refund under that section to which he or she is not entitled, or receives an amount greater than the amount to which he or she is entitled, shall repay the amount or the excess amount, as the case may be, to the Provincial Minister.
136. (1) Subsection 22.1 (2) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 34, section 79, is repealed and the following substituted:
Issues not subject to objection
(2) An individual shall not raise by way of objection under subsection (1) any issue related to whether a person is a "cohabiting spouse or common-law partner", "eligible individual" or "qualified dependant" within the meaning of section 8.5.
(2) Subsection 22.1 (13) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 34, section 79 and amended by 1999, chapter 9, section 126, is further amended by striking out "Ontario Court (General Division)" in the portion before clause (a) and substituting "Superior Court of Justice".
137. (1) Subsection 23 (1) of the Act, as re-enacted by the Statutes of Ontario, 1992, chapter 25, section 10, is amended by striking out "Ontario Court (General Division)" in the portion before clause (a) and substituting "Superior Court of Justice".
(2) Subsection 23 (3) of the Act is amended by striking out "Ontario Court (General Division)" and substituting "Superior Court of Justice".
138. Subsection 31 (2) of the Act is amended by striking out "Ontario Court (General Division)" and substituting "Superior Court of Justice".
139. Section 32 of the Act is amended by striking out "Ontario Court (General Division)" and substituting "Superior Court of Justice".
140. Clause 38 (2) (a) of the Act is amended by striking out "Ontario Court (General Division)" and substituting "Superior Court of Justice".
Commencement
141. (1) Subject to subsections (2) to (7), this Part comes into force on the day this Act receives Royal Assent.
Same
(2) Subsection 128 (7) shall be deemed to have come into force on January 1, 1996.
Same
(3) Subsections 128 (5), 131 (11), (12) and (13) and section 132 shall be deemed to have come into force on January 1, 2000.
Same
(4) The following provisions shall be deemed to have come into force on January 1, 2001:
1. Section 127.
2. Subsections 128 (1), (2), (3), (4) and (6), 130 (1), (2), (3) and (4) and 131 (1), (3), (4), (5), (6), (7), (8), (9) and (10).
3. Section 133.
4. Subsection 136 (1).
Same
(5) Section 129 shall be deemed to have come into force on October 1, 2001.
Same
(6) Sections 134 and 135 come into force immediately upon the coming into force of the Statutes of Ontario, 2000, chapter 42, section 58.
Same
(7) Subsections 130 (5) and (6) and 131 (2) come into force on January 1, 2002.
PART XV
LAND TRANSFER TAX ACT
142. The Land Transfer Tax Act is amended by adding the following section:
Exemptions under other Acts
1.1 No person otherwise subject to tax under this Act is exempt therefrom by reason of an exemption granted to the person, or to or in respect of the personal or real property of the person, by or under any other Act, unless the other Act expressly mentions this Act.
143. Subsection 9.2 (2) of the Act, as re-enacted by the Statutes of Ontario, 2000, chapter 10, section 19, 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,
(a) 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; and
(b) if the purchaser occupies the home as his or her principal residence no later than nine months after the date of the conveyance or disposition.
144. The Act is amended by adding the following section:
Assessment, non-arm's length transfers
13.1 (1) In this section,
"member of his or her family" means, in relation to a transferor, the parent, spouse, grandparent, child, grandchild, son-in-law, daughter-in-law, father-in-law or mother-in-law of the transferor.
Liability to pay
(2) If at any time a person transfers property (including money), either directly or indirectly, by means of a trust or by any other means to a member of his or her family, to his or her same-sex partner, to an individual who is less than 18 years old at the time of the transfer, or to another person with whom the transferor is not dealing at arm's length, the transferor and transferee are jointly and severally liable to pay under this Act the amount determined under subsection (4).
Same
(3) For the purpose of subsection (2), persons shall be deemed not to deal with each other at arm's length if, by reason of subsections 251 (1) to (6) of the Income Tax Act (Canada), they are related to each other for the purposes of that Act.
Amount payable
(4) The amount referred to in subsection (2) is the lesser of "A" and "B" where,
"A" is the amount, if any, by which the fair market value of the property transferred, at the time of the transfer, exceeds the fair market value, at the time of the transfer, of the consideration given by the transferee for the transfer, and
"B" is the total of all amounts each of which is,
(a) any tax payable by the transferor but not paid as required under this Act,
(b) any penalty or interest for which the transferor is liable under this Act at the time of the transfer.
Same
(5) Nothing in subsection (2) or (4) limits the liability of the transferor or transferee under any other provision of this Act.
Assessment
(6) The Minister may assess a transferee at any time in respect of any amount payable by reason of this section, and sections 13 and 14 apply, with necessary modifications, to the assessment.
Effect of payment
(7) If a transferor and transferee are jointly and severally liable to pay an amount under this section,
(a) a payment by the transferee on account of the transferee's liability discharges the joint liability, to the extent of the payment; and
(b) a payment by the transferor on account of the transferor's liability under this Act discharges the transferee's liability under this section to the extent that the payment reduces the balance of the transferor's liability under this Act to an amount less than the amount of the transferee's liability under this section.
Exception
(8) Subsection (2) does not apply with respect to a transfer of property (including money) between spouses or same-sex partners,
(a) under a decree, order or judgment of a competent tribunal; or
(b) under a written separation agreement if, at the time of the transfer, the transferor and transferee were living separate and apart as a result of a breakdown of their relationship.
145. (1) Subsection 14 (1) of the Act is amended by striking out "Ontario Court (General Division)" and substituting "Superior Court of Justice".
(2) Subsection 14 (2) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 43, Schedule F, section 6, is amended by striking out "Ontario Court (General Division)" in the portion before clause (a) and substituting "Superior Court of Justice".
(3) Subsection 14 (5) of the Act, as amended by the Statutes of Ontario, 1999, chapter 9, section 135, is further amended by striking out "Ontario Court (General Division)" wherever it occurs and substituting in each case "Superior Court of Justice".
(4) Subsection 14 (6) of the Act is amended by striking out "Ontario Court (General Division)" and substituting "Superior Court of Justice".
146. Clause 15 (1) (b) of the Act is amended by striking out "Ontario Court (General Division)" and substituting "Superior Court of Justice".
147. (1) Subsection 15.1 (5) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 18, section 4, is amended,
(a) by striking out "third anniversary" and substituting "fifth anniversary"; and
(b) by striking out "three-year period" wherever it occurs and substituting in each case "five-year period".
(2) Subsection 15.1 (6) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 18, section 4, is repealed and the following substituted:
Same
(6) If taxes remain outstanding and unpaid at the end of the period, or its renewal, referred to in subsection (5), the Minister may register a renewal notice of lien and charge; the lien and charge remains in effect for a five-year period from the date the renewal notice is registered, until the amount is fully paid, and shall be deemed to be continuously registered since the initial notice of lien and charge was registered under subsection (2).
148. (1) Subsection 16 (1) of the Act, as amended by the Statutes of Ontario, 1994, chapter 18, section 4, is repealed and the following substituted:
Garnishment
(1) When the Minister has knowledge or suspects that a person (a "third party") is, or within 365 days will become, indebted or liable to make any payment to a person (a "tax debtor") liable to make a payment under this Act, the Minister may, by registered letter or by letter served personally, require the third party to promptly pay to the Minister any money that is otherwise payable by the third party to the tax debtor in whole or in part during the 365 days after the third party receives the letter.
(2) Subsections 16 (4) and (5) of the Act are repealed and the following substituted:
Service on garnishee
(4) If a person (a "third party") who is, or within 365 days will become, indebted or liable to make a payment to a person liable to make a payment under this Act carries on business under a name or style other than the third party's own name, the letter under this section from the Minister to the third party may be addressed using the name or style under which the third party carries on business and, in the case of personal service, the letter shall be deemed to have been validly served if it is left with an adult employed at the place of business of the addressee.
Same
(5) If persons ("partners") who are, or within 365 days will become, indebted or liable to make a payment to a person liable to make a payment under this Act carry on business in partnership, the letter under this section from the Minister to the partners may be addressed to the partnership name and, in the case of personal service, the letter shall be deemed to have been validly served if it is served on a partner or left with an adult employed at the place of business of the partnership.
(3) Subsection 16 (7) of the Act, as amended by the Statutes of Ontario, 1994, chapter 18, section 4, is further amended by striking out "before a judge of the Ontario Court (General Division)" and substituting "to the Superior Court of Justice".
Commencement
149. This Part comes into force on the day this Act receives Royal Assent.
PART XVI
MINING TAX ACT
150. Subsection 1 (1) of the Mining Tax Act, as amended by the Statutes of Ontario, 1994, chapter 18, section 6 and 2000, chapter 42, section 70, is further amended by adding the following definition:
"stone for ornamental or decorative purposes" does not include diamonds; ("pierre servant à des fins ornementales ou décoratives")
151. (1) Subsection 3 (1) of the Act, as re-enacted by the Statutes of Ontario, 2000, chapter 42, section 71, subsections 3 (1.1) and (1.2) of the Act, as enacted by 2000, chapter 42, section 71, subsection 3 (2) of the Act, as re-enacted by 2000, chapter 42, section 71 and subsection 3 (2.1) of the Act, as enacted by 2000, chapter 42, section 71, are repealed and the following substituted:
Mining tax
(1) Every operator is liable for and shall pay a tax for a taxation year equal to the amount calculated using the formula,
[( A - B ) × C] + [(D - E) × 0.05]
in which,
"A" is the amount of the operator's profit, if any, as determined under subsection (5) for the taxation year, from all mines, other than remote mines, in which the operator has an interest,
"B" is the amount calculated under subsection (1.2) for the taxation year,
"C" is the tax rate for the taxation year as determined under subsection (3.1),
"D" is the amount of the operator's profit, if any, as determined under subsection (7) for the taxation year, from all remote mines in which the operator has an interest, and
"E" is the amount calculated under subsection (1.3) for the taxation year.
Deemed not to be a remote mine
(1.1) A remote mine for which an election is made by an operator under subsection 4 (4.1) is deemed not to be a remote mine for the purposes of determining the amount of tax payable under this Act for a taxation year before the first taxation year in which the operator treats the mine as a remote mine.
Calculation of "B"
(1.2) The variable "B" in subsection (1) for a taxation year is the amount calculated using the formula,
F × A / (A + D)
in which,
"A" has the same meaning as in subsection (1),
"D" has the same meaning as in subsection (1), and
"F" is the amount of the operator's annual deduction for the taxation year, as determined under subsection (2) for the taxation year.
Calculation of "E"
(1.3) The variable "E" in subsection (1) for a taxation year is the amount calculated using the formula,
F × D / (A + D)
in which,
"A" has the same meaning as in subsection (1),
"D" has the same meaning as in subsection (1), and
"F" has the same meaning as in subsection (1.2).
Annual deduction
(2) The amount of an operator's annual deduction for a taxation year is the amount claimed by the operator, not exceeding the lesser of,
(a) the proportion of $500,000 that the number of days in the taxation year is of 365; and
(b) the sum of the amounts determined under section (3) for the taxation year for each mine in which the operator has an interest.
Annual deduction, associated corporations
(2.1) Despite subsection (2), associated corporations who are operators of one or more mines shall claim annual deductions for a taxation year in amounts that in total do not exceed $500,000.
(2) Subsection 3 (5) of the Act is repealed and the following substituted:
Profit, mines other than remote mines
(5) An operator's profit for a taxation year from all mines, other than remote mines, in which the operator has an interest is the amount, if any, by which,
(a) the operator's proceeds for the taxation year from the mines, other than amounts included in the computation of tax payable under this Act for a prior taxation year in respect of the mines,
exceeds the aggregate of,
(b) the expenses incurred by the operator in the taxation year that are not otherwise deductible under this subsection, to the extent that the expenses are attributable to the production of output from the mines;
(c) the operator's operating and maintenance expenses incurred in the taxation year with respect to social assets in Ontario for the mines, after deducting all rents, fees, grants and other payments received by the operator during the taxation year in connection with those expenses;
(d) the administrative and overhead expenses incurred by the operator in the taxation year, to the extent the expenses are reasonably attributable to the production or sale of output of the mines;
(e) the expenses incurred by the operator in the taxation year in respect of scientific research conducted in Canada or product use development research conducted in Canada, to the extent the research is related to output of the mines;
(f) the donations made by the operator in the taxation year for charitable, educational or benevolent purposes that are reasonably related to mining operations in Ontario, other than donations that are reasonably related to any remote mines in which the operator has an interest;
(g) an amount not exceeding the maximum amount deductible by the operator for the taxation year in respect of exploration and development expenditures, as determined under subsection (13), less the amount, if any, deducted by the operator for the taxation year under subsection (8) or (9) in respect of those expenditures;
(h) an amount not exceeding the operator's allowance for depreciation for the taxation year, calculated in accordance with subsection (12), less the allowance for depreciation, if any, deducted by the operator for the taxation year under subsection (8) or (9);
(i) the expenses and outlays incurred by the operator in the taxation year for the transportation of output from the mines to the point of delivery of the output to purchasers;
(j) such reserves and deductions as may be prescribed for the purposes of determining an operator's profit from mines that are not remote mines;
(k) the operator's prescribed processing allowance for the taxation year, other than its processing allowance for the year in respect of remote mines in which it has an interest; and
(l) the amount, if any, of the operator's remote mine loss deduction, as determined under subsection (6), in respect of any remote mines in which the operator has an interest.
Remote mine loss deduction
(6) The amount of an operator's remote mine loss deduction for a taxation year is the amount calculated using the formula,
(G - H) × (0.05/C)
in which,
G" is the sum of all amounts, if any, each of which is the operator's loss for the taxation year from a remote mine in which the operator has an interest, as determined under subsection (9),
"H" is the amount by which the sum of the operator's profit for the taxation year from each remote mine in which the operator has an interest, as determined under subsection (8), exceeds the amount, if any, claimed by the operator under subsection 3.2 (4) for the taxation year, and
"C" is the tax rate for the taxation year as determined under subsection (3.1).
Profit from all remote mines
(7) An operator's profit for a taxation year from all remote mines in which the operator has an interest is the amount calculated using the formula,
I - (J + K + L)
in which,
"I" is the sum of all amounts, if any, each of which is the operator's profit for the taxation year from a remote mine, as determined under subsection (8),
"J" is the amount, if any, deducted under subsection 3.2 (4) by the operator for the taxation year,
"K" is the sum of all amounts, if any, each of which is the operator's loss for the taxation year from a remote mine, as determined under subsection (9), and
"L" is the amount, if any, of the operator's loss for the taxation year from mines that are not remote mines, as determined under subsection (10).
Profit from remote mine
(8) An operator's profit, if any, from a remote mine for a taxation year is the amount, if any, that would be determined under subsection (5) for the taxation year if the operator were deemed to have no interest in any mine other than the remote mine during the taxation year, the remote mine were deemed not to be a remote mine and the following rules applied:
1. The only amounts deductible under clause (5) (g) are exploration and development expenditures made or incurred in respect of the remote mine for a purpose described in clause (b) or (c) of the definition of "exploration and development expenditures" in subsection 1 (1).
2. The amount deductible under clause (5) (h) is determined without reference to clause (12) (c).
3. No amount is deductible under clause (5) (l).
4. The allowance for depreciation under clause 3 (5) (h) is the amount equal to the aggregate of the maximum amounts calculated in accordance with clauses 3 (12) (a) and (b), subject to clauses 3 (12) (d) and (e) and subsection 3 (21).
Loss, remote mine
(9) An operator's loss for a taxation year from a remote mine is the amount, if any, by which the amount that would otherwise be determined under subsection (8) for the taxation year in respect of the remote mine would be less than zero.
Loss, mines other than remote mines
(10) The amount of an operator's loss, if any, for a taxation year from mines other than remote mines is the amount calculated using the formula,
M × C/0.05
in which,
"M" is the amount by which the sum of the amounts determined for the taxation year in respect of the operator for the purposes of clauses (5) (b) to (k) exceed the amount determined for the taxation year in respect of the operator under clause (5) (a), and
"C" is the tax rate for the taxation year as determined under subsection (3.1).
(3) Section 3 of the Act, as amended by the Statutes of Ontario, 1992, chapter 4, section 1, 2000, chapter 10, section 21 and 2000, chapter 42, section 71, is further amended by adding the following subsection:
Same
(12.1) The following rules apply if an operator has an interest in more than one mine during a taxation year and at least one of the mines is a remote mine:
1. The allowance for depreciation deductible by the operator in calculating the amount of the operator's profit for a taxation year under subsection (5) or (8) or loss for the taxation year under subsection (9) or (10) is the amount that would be the operator's allowance for depreciation for the taxation year under subsection (12) in respect of only the depreciable property that is reasonably related to the mine or mines in respect of which the calculation is made under subsection (5), (8), (9) or (10).
2. The total of all amounts deducted as an allowance for depreciation for a taxation year in respect of all mines in which the operator has an interest must not exceed the operator's allowance for depreciation for the taxation year, as determined under subsection (12).
152. (1) Clause 3.2 (4) (a) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 72, is repealed and the following substituted:
(a) the operator's profit, if any, from the remote mine for that portion of the exempt period that is during the taxation year; and
. . . . .
(2) Subsection 3.2 (9) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 72, is repealed and the following substituted:
Determination of profit
(9) For the purposes of this section, an operator's profit from a remote mine for a portion of the exempt period that is during a taxation year is determined under subsection 3 (8) as if that portion of the exempt period were a taxation year.
153. Section 4 of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 73, is amended by adding the following subsections:
Election
(4.1) Subject to subsection (4.2), an operator may elect to calculate its profit for a taxation year under subsection 3 (5) or section 3.1, as the case may be, in respect of a remote mine in which the operator has an interest as if the mine were not a remote mine.
Time of election
(4.2) An operator may elect under subsection (4.1) for a taxation year only if,
(a) an election under that subsection is made by the operator in a return delivered under section 7 for the taxation year in which the mine was certified as a remote mine; and
(b) the operator has not treated the mine as a remote mine for a prior taxation year.
Exception
(4.3) Despite clause (4.2) (a), if an operator delivers the return mentioned in that clause before subsection (4.2) comes into force, the operator may elect under subsection (4.1) for a taxation year if,
(a) the election under subsection (4.1) is delivered to the Minister within 90 days after subsection (4.2) comes into force; and
(b) the operator has not treated the mine as a remote mine for a prior taxation year.
154. Section 19 of the Act is amended by striking out "Ontario Court (General Division)" and substituting "Superior Court of Justice".
Commencement
155. (1) Subject to subsection (2), this Part comes into force on the day this Act receives Royal Assent.
Same
(2) Sections 151 and 152 shall be deemed to have come into force on May 7, 1996.
PART XVII
MUNICIPAL ACT
156. (1) Subsection 366 (1) of the Municipal Act, as re-enacted by the Statutes of Ontario 1997, chapter 5, section 55, is amended by adding the following definitions:
"commercial classes" has the meaning given to that expression by subsection 363 (20); ("catégories commerciales")
"industrial classes" has the meaning given to that expression by subsection 363 (20); ("catégories industrielles")
"optional property class" has the meaning given to that expression by subsection 363 (20); ("catégorie de biens facultative")
(2) Section 366 of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 55 and amended by 1997, chapter 29, section 34, 1998, chapter 3, section 15, 1998, chapter 33, section 13, 2000, chapter 25, section 21 and 2001, chapter 8, section 190, is further amended by adding the following subsection:
Exception
(4.2.1) Despite subsection (4.2), if a municipality opts to have an optional property class apply within the municipality for 2001 or a subsequent taxation year, the municipality may establish an average tax ratio for the commercial classes or for the industrial classes for that year, whichever includes the optional property class, using the assessment as determined under subsection (2.1), and the average tax ratio must not exceed the tax ratio prescribed under clause (4.3) (a).
157. (1) Subsection 368 (1) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 55, is amended by adding the following definitions:
"commercial classes" has the meaning given to that expression by subsection 363 (20); ("catégories commerciales")
"industrial classes" has the meaning given to that expression by subsection 363 (20); ("catégories industrielles")
"optional property class" has the meaning given to that expression by subsection 363 (20); ("catégorie de biens facultative")
(2) Section 368 of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 5, section 55 and amended by 1998, chapter 3, section 16, 1998, chapter 33, section 14, 2000, chapter 25, section 22 and 2001, chapter 8, section 191, is further amended by adding the following subsection:
Exception
(4.2.1) Despite subsection (4.2), if a municipality opts to have an optional property class apply within the municipality for 2001 or a subsequent taxation year, the municipality may establish an average tax ratio for the commercial classes or for the industrial classes for that year, whichever includes the optional property class, using the assessment as determined under subsection (2.1), and the average tax ratio must not exceed the tax ratio prescribed under clause (4.3) (a).
158. Subsection 368.3 (13) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 29, section 37, is amended by adding the following paragraph:
4. The regulations are, if they so provide, effective with reference to periods before they are filed.
159. (1) Clause 442 (1) (a.1) of the Act, as enacted by the Statutes of Ontario, 2001, chapter 8, section 193, is repealed and the following substituted:
(a.1) in respect of property that has become vacant land or excess land during the year or during the preceding year after the return of the assessment roll;
(2) The French version of clause 442 (1) (b) of the Act is amended by striking out "ou de l'année qui précède, après le dépôt du rôle d'évaluation" and substituting "ou l'année précédente après le dépôt du rôle d'évaluation".
(3) The French version of clause 442 (1) (c) of the Act is amended by striking out "ou de l'année qui précède, et après le dépôt du rôle d'évaluation" in the portion before subclause (i) and substituting "ou l'année précédente après le dépôt du rôle d'évaluation".
(4) The French version of clause 442 (1) (d) of the Act is amended by striking out "ou de l'année qui précède, après le dépôt du rôle d'évaluation" and substituting "ou l'année précédente après le dépôt du rôle d'évaluation".
160. Paragraph 2 of subsection 442.1 (3) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 27 and amended by 2000, chapter 25, section 32, is repealed and the following substituted:
2. The amount of a rebate required under paragraph 1 must be at least 40 per cent, or such other percentage as the Minister of Finance may prescribe, of the taxes paid by the eligible charity on the property it occupies. If the eligible charity is required to pay an amount under section 444.1 or 444.2, the amount of the rebate shall be the total of the amounts the charity paid under those sections.
161. Section 442.3 of the Act, as enacted by the Statutes of Ontario, 1998, chapter 3, section 28, is repealed.
162. The Act is amended by adding the following section:
Tax reduction for heritage property
442.7 (1) Despite section 111, the council of a local municipality may pass a by-law to establish a program to provide tax reductions or refunds in respect of eligible heritage property.
Definitions
(2) In this section,
"eligible heritage property" means a property or portion of a property,
(a) that is designated under Part IV of the Ontario Heritage Act or is part of a heritage conservation district under Part V of the Ontario Heritage Act,
(b) that is subject to,
(i) an easement agreement with the local municipality in which it is located, under section 37 of the Ontario Heritage Act,
(ii) an easement agreement with the Ontario Heritage Foundation, under section 22 of the Ontario Heritage Act, or
(iii) an agreement with the local municipality in which it is located, respecting the preservation and maintenance of the property, and
(c) that complies with any additional eligibility criteria set out in the by-law passed under this section by the local municipality in which it is located; ("bien patrimonial admissible")
"lower-tier municipality" has the same meaning as in section 361.1; ("municipalité de palier inférieur")
"single-tier municipality" has the same meaning as in subsection 442.6 (6); ("municipalité à palier unique")
"upper-tier municipality" has the same meaning as in section 361.1. ("municipalité de palier supérieur")
Amount of tax reduction
(3) The amount of the tax reduction or refund provided by a local municipality in respect of an eligible heritage property must be between 10 and 40 per cent of the taxes for municipal and school purposes levied on the property that are attributable to,
(a) the building or structure or portion of the building or structure that is the eligible heritage property; and
(b) the land used in connection with the eligible heritage property, as determined by the local municipality.
By-law requirements
(4) In a by-law under this section, the council of a local municipality,
(a) must specify a percentage that satisfies the requirements of subsection (3) that will be used in calculating the amount of the tax reduction or refund to be provided in respect of eligible heritage properties;
(b) may specify different percentages of tax that satisfy the requirements of subsection (3) for different property classes or different types of properties within a property class;
(c) may specify a minimum or maximum amount of taxes for a year to be reduced or refunded under the by-law;
(d) may specify additional criteria that must be satisfied in order for a property to qualify as an eligible heritage property and may specify different criteria for properties in different property classes;
(e) may establish procedures for applying for a tax reduction or refund for one or more years.
Notice to Minister of Finance
(5) A local municipality shall deliver a copy of a by-law under this section to the Minister of Finance within 30 days after the by-law is passed.
Notice to upper-tier municipality
(6) A lower-tier municipality that passes a by-law under this section shall notify the upper-tier municipality of the amount of taxes to be reduced or refunded for lower-tier purposes under the by-law.
Tax reduction or refund by upper-tier municipality
(7) An upper-tier municipality that receives a notice under subsection (6) may pass a by-law to authorize a similar reduction or refund of taxes levied for upper-tier purposes.
Sharing of tax reduction or refund
(8) The following rules apply if a local municipality passes a by-law under this section:
1. If the local municipality is a single-tier municipality, the amount of the tax reduction or refund must be shared by the municipality and the school boards in the same proportion that they share in the revenue from taxes from the properties to which the tax reduction or refund relates.
2. If the local municipality is a lower-tier municipality and the upper-tier municipality passes a by-law described in subsection (7), the tax reduction or refund must be shared by both municipalities and the school boards in the same proportion that they share in the revenue from taxes from the properties to which the tax reduction or refund relates.
3. If the local municipality is a lower-tier municipality and the upper-tier municipality does not pass a by-law described in subsection (7), the tax reduction or refund must be shared,
i. without affecting the taxes levied for upper-tier purposes, by the lower-tier municipality and the school boards in the same proportion that they share in the revenue from taxes from the properties to which the tax reduction or refund relates, or
ii. by the school boards in the same proportion that they share in the revenue from taxes from the properties to which the tax reduction or refund relates and by the lower-tier municipality in respect of the taxes levied for both lower-tier and upper-tier purposes.
Application
(9) The following rules apply if a local municipality passes a by-law under this section:
1. An owner of an eligible heritage property in the municipality may obtain the tax reduction or refund for a year if the owner applies to the local municipality not later than the last day of February in the year following the first year for which the owner is seeking to obtain the tax reduction or refund.
2. The local municipality may, in a by-law under this section, require owners of eligible heritage properties to submit applications for the tax reduction or refund in one or more years following the year of initial application.
Apportionment by Municipal Property Assessment Corporation
(10) A local municipality may request information from the assessment corporation concerning the portion of a property's total assessment that is attributable to the building or structure or portion of the building or structure that is eligible heritage property and the land used in connection with it.
Same
(11) The assessment corporation shall provide the information requested by a local municipality under subsection (10) within 90 days after receiving the request.
Application against outstanding tax liability
(12) A local municipality may apply all or part of the amount of a tax reduction or refund in respect of an eligible heritage property against any outstanding tax liability in respect of the property.
Owner may retain benefit
(13) An owner of an eligible heritage property may retain the benefit of any tax reduction or refund obtained under this section, despite the provisions of any lease or other agreement relating to the property.
Penalty
(14) If the owner of an eligible heritage property demolishes the property or breaches the terms of an agreement described in clause (b) of the definition of "eligible heritage property" in subsection (2), the local municipality may require the owner to repay part or all of any tax reductions or refunds provided to the owner for one or more years under a by-law under this section.
Interest
(15) A local municipality may require the owner to pay interest on the amount of any repayment required under subsection (14), at a rate not exceeding the lowest prime rate reported to the Bank of Canada by any of the banks listed in Schedule I to the Bank Act (Canada), calculated from the date or dates the tax reductions or refunds were provided.
Sharing of repayment
(16) Any amount paid under subsection (14) or (15) to a local municipality in respect of a property must be shared by the municipalities and school boards that share in the revenue from taxes on the property, in the same proportion that they shared in the cost of the tax reduction or refund on the property under this section.
Collection remedies
(17) Sections 382, 383, 384 and 385 apply in respect of an amount owing under subsection (14) or (15).
Regulations
(18) The Minister of Finance may make regulations,
(a) governing by-laws under this section, including procedures for a tax reduction or refund;
(b) governing the provision of tax reductions or refunds under by-laws passed under this section, including the establishment of deadlines for payments of refunds by municipalities.
Regulation may be general or specific
(19) A regulation made under subsection (18) may be general or specific in its application and may apply differently to different municipalities or classes of property.
163. (1) Subparagraph 1 iii of subsection 444.2 (8) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 25, section 38, is repealed and the following substituted:
iii. the amount of the business improvement area charges for the property for the year or an estimate of the amount of the charges for the property for the year if not yet determined.
(2) Paragraph 3 of subsection 444.2 (8) of the Act, as re-enacted by the Statutes of Ontario, 2000, chapter 25, section 38, is repealed and the following substituted:
3. The landlord shall provide the tenant with a notice of the adjustments, if any, to be made after the business improvement area charges for the taxation year are determined.
164. Subsection 447.7 (4) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 25, section 39, is amended by striking out "33 (3)" and substituting "33 (1)".
165. (1) Subsection 447.26.1 (7) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 25, section 41, is repealed and the following substituted:
Provisions apply to an appeal
(7) Subject to this section, subsections 442 (16) and (18) or subsections 444 (9), (12) and (13), as the case may be, apply to an appeal under this section.
(2) Subsection 447.26.1 (8) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 25, section 41, is amended by striking out "subsection (7)" and substituting "subsection (6)".
166. (1) Subsection 447.65 (1) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 25, section 44, is amended by striking out "and under section 447.67" and substituting "and sections 447.67 and 447.70" in the portion before paragraph 1.
(2) Section 447.65 of the Act, as enacted by the Statutes of Ontario, 2000, chapter 25, section 44, is amended by adding the following subsections:
Cancellation, reduction or refund of tax
under s. 442
(6.1) If the council of a municipality cancels, reduces or refunds taxes for 2001 on an application made under clause 442 (1) (c) or under such other provision of this Act as the Minister of Finance may prescribe, the amount of the cancellation, reduction or refund is calculated using the formula,
B/C × D
in which,
"B" is the amount of the cancellation, reduction or refund of taxes for the year, but for the application of this Part,
"C" is the amount of taxes for the year (without deducting the amount of the cancellation, reduction or refund of taxes) that would have been payable but for the application of this Part, and
"D" is the amount of taxes for the year that would be payable under this Part if no application were made.
Prescribed provision
(6.2) The Minister of Finance may prescribe by regulation one or more provisions of this Act for the purposes of subsection (6.1).
167. (1) Subsection 447.68 (1) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 25, section 44, is amended by striking out "under section 447.69" and substituting "sections 447.69 and 447.70" in the portion before paragraph 1.
(2) Paragraph 5 of subsection 447.68 (2) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 25, section 44, is amended by striking out "clause 442 (1) (a), (c) or (f)" and substituting "clause 442 (1) (a), (a.1), (b), (c) or (f)".
(3) Subsection 447.68 (2) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 25, section 44, is amended by adding the following paragraphs:
5.1 For the purposes of paragraph 1, the taxes for municipal and school purposes in respect of a property to which paragraph 8 of subsection 447.65 (2) applies for 2001 shall be the taxes for municipal purposes levied on the property in 2002.
. . . . .
8. For the purposes of paragraph 1, the taxes for municipal purposes, in respect of a property that is referred to in subsection 447.64 (4) and for which the taxes were limited during the preceding year to two-thirds of the taxes for municipal purposes that would otherwise have been levied on the property but for that subsection, shall be the taxes for municipal purposes that will be levied on the property in the taxation year.
(4) Section 447.68 of the Act, as enacted by the Statutes of Ontario, 2000, chapter 25, section 44, is amended by adding the following subsections:
Cancellation, reduction or refund of tax
under s. 442
(6.1) If the council of a municipality cancels, reduces or refunds taxes for a taxation year on an application made under clause 442 (1) (c) or under such other provision of this Act as the Minister of Finance may prescribe, the amount of the cancellation, reduction or refund is calculated using the formula,
B/C × D
in which,
"B" is the amount of the cancellation, reduction or refund of taxes for the year but for the application of this Part,
"C" is the amount of taxes for the year (without deducting the amount of the cancellation, reduction or refund of taxes) that would have been payable but for the application of this Part, and
"D" is the amount of taxes for the year that would be payable under this Part if no application were made.
Prescribed provision
(6.2) The Minister of Finance may prescribe by regulation one or more provisions of this Act for the purposes of subsection (6.1).
168. (1) Subsection 447.70 (2) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 25, section 44, is amended by adding "Despite any other provision in this Part" at the beginning.
(2) Subsection 447.70 (16) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 25, section 44, is amended by striking out "property" and substituting "eligible property".
(3) Clauses (c) and (d) of the definition of "eligible property" in subsection 447.70 (21) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 25, section 44, are repealed and the following substituted:
(c) that was subdivided or was subject to a severance,
(d) whose classification changes for 2001 or a later year, or
(e) that is prescribed by the Minister of Finance.
(4) Section 447.70 of the Act, as enacted by the Statutes of Ontario, 2000, chapter 25, section 44, is amended by adding the following subsections:
Regulations
(22) The Minister of Finance may make regulations,
(a) prescribing properties and classes of properties that are deemed to be "eligible property" for the purposes of this section;
(b) prescribing properties and classes of properties that are deemed not to be "eligible property" for the purposes of this section.
General or specific
(23) A regulation made under subsection (22) may be general or specific in its application and may apply differently to different municipalities or properties.
Retroactivity
(24) A regulation made under subsection (22) may provide that it is effective for a period before it is filed.
Commencement
169. (1) Subject to subsections (2) to (5), this Part comes into force on the day this Act receives Royal Assent.
Same
(2) Section 164 shall be deemed to have come into force on January 1, 1998.
Same
(3) Subsection 165 (1) shall be deemed to have come into force on December 4, 2000.
Same
(4) The following provisions shall be deemed to have come into force on January 1, 2001:
1. Sections 156, 157, 159, 160 and 161.
2. Subsection 166 (2).
3. Section 167.
4. Subsections 168 (2) and (3).
Same
(5) Section 162 comes into force on January 1, 2002.
PART XVIII
MUNICIPAL PROPERTY ASSESSMENT CORPORATION ACT, 1997
170. Subsection 12 (4) of the Municipal Property Assessment Corporation Act, 1997 is repealed.
Commencement
171. This Part comes into force on the day this Act receives Royal Assent.
PART XIX
ONTARIO GUARANTEED
ANNUAL INCOME ACT
172. Clause 2 (4) (a) of the Ontario Guaranteed Annual Income Act is amended by inserting "and is not in a common-law partnership" after "if the person is unmarried".
Commencement
173. (1) Subject to subsection (2), this Part comes into force on the day this Act receives Royal Assent.
Same
(2) Section 172 shall be deemed to have come into force on July 1, 2000.
PART XX
ONTARIO NORTHLAND TRANSPORTATION COMMISSION ACT
174. Section 7 of the Ontario Northland Transportation Commission Act is amended by adding the following subsections:
Power to cease undertakings and services
(3) With the approval of the Lieutenant Governor in Council, the Commission may discontinue any of the undertakings or cease to provide any of the services that it is authorized or required by this Act to engage in or provide.
Same
(4) If the Commission discontinues an undertaking or ceases to provide a service under this Act, the Commission may transfer any of its assets and liabilities relating to that undertaking or service to another person with the approval of the Lieutenant Governor in Council.
175. Section 8 of the Act is amended by inserting "former employees" after "the employees".
Commencement
176. This Part comes into force on the day this Act receives Royal Assent.
PART XXI
PROVINCIAL LAND TAX ACT
177. Subsection 8 (1) of the Provincial Land Tax Act is amended by striking out "Ontario Court (General Division)" and substituting "Superior Court of Justice".
178. (1) Subsection 11 (8) of the Act is amended by striking out "Ontario Court (General Division)" and substituting "Superior Court of Justice".
(2) Subsection 11 (9) of the Act, as amended by the Statutes of Ontario, 1999, chapter 9, section 179, is further amended by striking out "Ontario Court (General Division)" wherever it occurs and substituting in each case "Superior Court of Justice".
(3) Subsection 11 (11) of the Act is amended by striking out "Ontario Court (General Division)" and substituting "Superior Court of Justice".
179. Subsection 15 (2) of the Act is amended by striking out "Ontario Court (General Division)" and substituting "Superior Court of Justice".
180. Section 16 of the Act is amended by striking out "Ontario Court (General Division)" and substituting "Superior Court of Justice".
181. Subsection 17 (1) of the Act is amended by striking out "Ontario Court (General Division)" in the portion before clause (a) and substituting "Superior Court of Justice".
182. Clause 26 (2) (b) of the Act is amended by striking out "Ontario Court (General Division)" and substituting "Superior Court of Justice".
183. Subsection 27 (7) of the Act is amended by striking out "Ontario Court (General Division)" and substituting "Superior Court of Justice".
184. Section 37 of the Act is amended by striking out "Ontario Court (General Division)" and substituting "Superior Court of Justice".
Commencement
185. This Part comes into force on the day this Act receives Royal Assent.
PART XXII
RACE TRACKS TAX ACT
186. Clause 10 (1) (b) of the Race Tracks Tax Act is amended by striking out "Ontario Court (General Division)" and substituting "Superior Court of Justice".
Commencement
187. This Part comes into force on the day this Act receives Royal Assent.
PART XXIII
RETAIL SALES TAX ACT
188. (1) The definition of "insurer" in subsection 1 (1) of the Retail Sales Tax Act, as enacted by the Statutes of Ontario, 1994, chapter 13, section 1, is repealed and the following substituted:
"insurer" has the same meaning as in the Insurance Act and includes an exchange or reciprocal insurance exchange as defined in the Insurance Act and an association registered under the Prepaid Hospital and Medical Services Act; ("assureur")
(2) Subsection 1 (1) of the Act, as amended by the Statutes of Ontario, 1993, chapter 12, section 1, 1994, chapter 13, section 1, 1994, chapter 17, section 135, 1996, chapter 29, section 23, 1997, chapter 10, section 30, 1997, chapter 43, Schedule D, section 1, 2000, chapter 10, section 23 and 2001, chapter 8, section 227, is further amended by adding the following definitions:
"International Registration Plan" means the International Registration Plan referred to in subsection 7.1 (1) of the Highway Traffic Act; ("entente appelée International Registration Plan")
"member jurisdiction" means a jurisdiction other than Ontario that is a member of the International Registration Plan; ("autorité membre")
"multijurisdictional vehicle" means a vehicle for which an IRP cab card, as defined in subsection 6 (1) of the Highway Traffic Act, has been issued; ("véhicule à immatriculation multilatérale")
(3) Clause (a) of the definition of "premium" in subsection 1 (1) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 13, section 1, is amended by inserting "any payment made by a subscriber to an exchange or reciprocal insurance exchange (as defined in the Insurance Act) and" after "and includes".
(4) Subsection 1 (1) of the Act, as amended by the Statutes of Ontario, 1993, chapter 12, section 1, 1994, chapter 13, section 1, 1994, chapter 17, section 135, 1996, chapter 29, section 23, 1997, chapter 10, section 30, 1997, chapter 43, Schedule D, section 1, 2000, chapter 10, section 23 and 2001, chapter 8, section 227, is further amended by adding the following definitions:
"registrant" means a person who registers a multijurisdictional vehicle under the International Registration Plan; ("titulaire de l'immatriculation")
"registration year" means, in respect of a multijurisdictional vehicle, the period, not exceeding 12 months, beginning on the day the vehicle is registered under the International Registration Plan; ("année d'immatriculation")
(5) Subsection 1 (1) of the Act, as amended by the Statutes of Ontario, 1993, chapter 12, section 1, 1994, chapter 13, section 1, 1994, chapter 17, section 135, 1996, chapter 29, section 23, 1997, chapter 10, section 30, 1997, chapter 43, Schedule D, section 1, 2000, chapter 10, section 23 and 2001, chapter 8, section 227, is further amended by adding the following definition:
"returnable container" means a container that is intended to be returned to be refilled by a manufacturer; ("contenant réutilisable")
(6) Subsection 1 (1) of the Act, as amended by the Statutes of Ontario, 1993, chapter 12, section 1, 1994, chapter 13, section 1, 1994, chapter 17, section 135, 1996, chapter 29, section 23, 1997, chapter 10, section 30, 1997, chapter 43, Schedule D, section 1, 2000, chapter 10, section 23 and 2001, chapter 8, section 227, is further amended by adding the following definition:
"subscriber" means, in relation to an exchange or reciprocal insurance exchange (as defined in the Insurance Act), a person exchanging with another person a reciprocal contract of indemnity or insurance; ("souscripteur")
(7) Subsection 1 (1) of the Act, as amended by the Statutes of Ontario, 1993, chapter 12, section 1, 1994, chapter 13, section 1, 1994, chapter 17, section 135, 1996, chapter 29, section 23, 1997, chapter 10, section 30, 1997, chapter 43, Schedule D, section 1, 2000, chapter 10, section 23 and 2001, chapter 8, section 227, is further amended by adding the following definition:
"trailer" has the same meaning as in subsection 1 (1) of the Highway Traffic Act; ("remorque")
189. The Act is amended by adding the following section:
Exemptions under other Acts
1.1 No person otherwise subject to tax under this Act is exempt therefrom by reason of an exemption granted to the person, or to or in respect of the personal or real property of the person, by or under any other Act, unless the other Act expressly mentions this Act.
190. Section 2.6 of the Act, as enacted by the Statutes of Ontario, 1997, chapter 10, section 31, is amended by adding the following subsection:
Liability of the Crown
(2) Despite subsections 5 (2) and (4) of the Proceedings Against the Crown Act, subsection (1) does not relieve the Crown of a liability to which it would otherwise be subject in respect of a tort.
191. (1) Subsection 3 (1) of the Act, as enacted by the Statutes of Ontario, 2001, chapter 8, section 228, is repealed and the following substituted:
Tax on multijurisdictional vehicles
(1) In this section,
"repair parts" means,
(a) replacement parts designed and manufactured specifically for use on a multijurisdictional vehicle or a trailer used with a multijurisdictional vehicle, and
(b) parts purchased as part of a repair work order for a multijurisdictional vehicle or for a trailer that is used with a multijurisdictional vehicle.
(2) Subsection 3 (6) of the Act, as enacted by the Statutes of Ontario, 2001, chapter 8, section 228, is repealed.
(3) Subsection 3 (9) of the Act, as enacted by the Statutes of Ontario, 2001, chapter 8, section 228, is amended by striking out "or lessee" in the portion before clause (a).
(4) Clause 3 (9) (b) of the Act, as enacted by the Statutes of Ontario, 2001, chapter 8, section 228, is amended by striking out "or lessee".
(5) Subsection 3 (10) of the Act, as enacted by the Statutes of Ontario, 2001, chapter 8, section 228, is amended,
(a) by striking out "or lessee" wherever it occurs; and
(b) by striking out "or lessee's" in the English version.
(6) Section 3 of the Act, as enacted by the Statutes of Ontario, 2001, chapter 8, section 228, is amended by adding the following subsections:
Owner's status as purchaser
(11) In the circumstances described in subsections (9) and (10), the owner shall be deemed to be a purchaser for the purposes of the following provisions:
1. Subsections 18 (2), (3) and (5) (assessment).
2. Subsection 20 (7) (penalty).
3. Clauses 31 (1) (c) and (2) (c) (investigations).
4. Clauses 32 (4) (b) and (c) (offences).
5. Subclause 34 (2) (a) (i) (calculation of interest).
6. Subsection 37 (1) (recovery of tax).
7. Clause 48 (3) (b) (regulations re record-keeping).
Conditional exemption
(12) If the owner or lessee of a multijurisdictional vehicle transfers it to a person who is in a prescribed relationship to the owner or lessee, as the case may be, the tax under this section is payable in accordance with the regulations.
192. (1) Paragraph 41 of subsection 7 (1) of the Act, as it read on September 11, 1996, is amended by adding at the end "other than a returnable container for use or sale in Ontario".
(2) Paragraph 41 of subsection 7 (1) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 10, section 32, is repealed and the following substituted:
41. Tangible personal property purchased for the purpose of being processed, fabricated or manufactured into, attached to, or incorporated into tangible personal property for the purpose of sale. However, this exemption does not apply with respect to,
i. a returnable container for use or sale in Ontario, or
ii. a computer program used to produce another computer program that may be purchased exempt from tax under paragraph 62.
(3) 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, 1999, chapter 9, section 184, 2000, chapter 10, section 28, 2000, chapter 42, section 93 and 2001, chapter 8, section 230, is further amended by adding the following paragraph:
66. Audio books, as defined by the Minister. However, the exemption applies only in the circumstances prescribed by the Minister.
193. (1) Subsection 17 (9.2) of the Act, as enacted by the Statutes of Ontario, 2001, chapter 8, section 231, is amended by striking out "member jurisdiction within the meaning of section 3" and substituting "member jurisdiction".
(2) Subsection 17 (9.3) of the Act, as enacted by the Statutes of Ontario, 2001, chapter 8, section 231, is amended by striking out "member jurisdiction within the meaning of section 3" and substituting "member jurisdiction".
194. (1) Subsection 18 (2) of the Act is amended,
(a) by striking out "any vendor or purchaser" and substituting "any vendor, purchaser or registrant"; and
(b) by striking out "payable by the purchaser" wherever it occurs and substituting in each case "payable by the purchaser or registrant".
(2) Subsection 18 (3) of the Act, as amended by the Statutes of Ontario, 1996, chapter 29, section 30, is further amended by inserting "or registrant" after "purchaser" wherever it occurs.
(3) Section 18 of the Act, as amended by the Statutes of Ontario, 1994, chapter 13, sections 8 and 13 and 1996, chapter 29, section 30, is further amended by adding the following subsections:
Assessment re amounts held in trust
(3.1) The Minister may assess the amount that a person is responsible to pay under subsection 6 (2) and the assessed amount shall be deemed to be tax collectable, collected or payable, as the case may be, by the person.
Same
(3.2) The Minister may assess the amount for which a person is liable under subsection 22 (6) and the assessed amount shall be deemed to be tax collected or collectable, as the case may be, by the person.
(4) Subsection 18 (5) of the Act is repealed and the following substituted:
Notice of assessment
(5) The Minister shall deliver by prepaid mail or personal service a notice of the assessment made under this section to the person assessed, at the person's latest known address, and if the person has more than one address, one of which is in Ontario, the notice shall be sent to the address in Ontario.
195. The Act is amended by adding the following section:
Assessment, non-arm's length transfers
18.1 (1) In this section,
"member of his or her family" means, in relation to a transferor, the parent, spouse, grandparent, child, grandchild, son-in-law, daughter-in-law, father-in-law or mother-in-law of the transferor; ("membre de sa famille")
"same-sex partner" means same-sex partner as defined in section 29 of the Family Law Act; ("partenaire de même sexe")
"spouse" means spouse as defined in section 29 of the Family Law Act. ("conjoint")
Liability to pay
(2) If at any time a person transfers property (including money), either directly or indirectly, by means of a trust or by any other means to a member of his or her family, to his or her same-sex partner, to an individual who is less than 18 years old at the time of the transfer, or to another person with whom the transferor is not dealing at arm's length, the transferor and transferee are jointly and severally liable to pay under this Act the amount determined under subsection (4).
Same
(3) For the purpose of subsection (2), persons shall be deemed not to deal with each other at arm's length if, by reason of subsections 251 (1) to (6) of the Income Tax Act (Canada), they are related to each other for the purposes of that Act.
Amount payable
(4) The amount referred to in subsection (2) is the lesser of "A" and "B" where,
"A" is the amount, if any, by which the fair market value of the property transferred, at the time of the transfer, exceeds the fair market value, at the time of the transfer, of the consideration given by the transferee for the transfer, and
"B" is the total of all amounts each of which is,
(a) any tax payable by the transferor under this Act at the time of the transfer or at any previous time but not paid,
(b) any tax collected, collectable or payable but not remitted or transmitted as required under this Act by the transferor for the reporting period during which the transfer took place or any previous reporting period,
(c) any penalty or interest for which the transferor is liable under this Act at the time of the transfer.
Same
(5) Nothing in subsection (2) or (4) limits the liability of the transferor or transferee under any other provision of this Act.
Assessment
(6) The Minister may assess a transferee at any time in respect of any amount payable by reason of this section, and sections 24 and 25 apply, with necessary modifications, to the assessment.
Effect of payment
(7) If a transferor and transferee are jointly and severally liable to pay an amount under this section,
(a) a payment by the transferee on account of the transferee's liability discharges the joint liability, to the extent of the payment; and
(b) a payment by the transferor on account of the transferor's liability under this Act discharges the transferee's liability under this section to the extent that the payment reduces the balance of the transferor's liability under this Act to an amount less than the amount of the transferee's liability under this section.
Exception
(8) Subsection (2) does not apply with respect to a transfer of property (including money) between spouses or same-sex partners,
(a) under a decree, order or judgment of a competent tribunal; or
(b) under a written separation agreement if, at the time of the transfer, the transferor and transferee were living separate and apart as a result of a breakdown of their relationship.
196. Subsection 20 (7) of the Act is amended,
(a) by inserting "or registrant" after "assessed a vendor for tax collected or a purchaser"; and
(b) by striking out "such vendor or purchaser" wherever it occurs and substituting in each case "the vendor, purchaser or registrant".
197. (1) Subsection 23 (5) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 13, section 17, is amended,
(a) by striking out "third anniversary" and substituting "fifth anniversary"; and
(b) by striking out "three-year period" wherever it occurs and substituting in each case "five-year period".
(2) Subsection 23 (6) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 13, section 17, is repealed and the following substituted:
Same
(6) If tax remains outstanding and unpaid at the end of the period, or its renewal, referred to in subsection (5), the Minister may register a renewal notice of lien and charge; the lien and charge remains in effect for a five-year period from the date the renewal notice is registered until the amount is fully paid, and shall be deemed to be continuously registered since the initial notice of lien and charge was registered under subsection (2).
198. (1) Subsection 25 (1) of the Act is amended by striking out "Ontario Court (General Division)" and substituting "Superior Court of Justice".
(2) Subsection 25 (2) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 43, Schedule D, section 9, is amended by striking out "Ontario Court (General Division)" in the portion before clause (a) and substituting "Superior Court of Justice".
199. Section 26 of the Act, as amended by the Statutes of Ontario, 1999, chapter 9, section 187, is further amended by striking out "Ontario Court (General Division)" and substituting "Superior Court of Justice".
200. Subsection 27 (1) of the Act is amended by striking out "Ontario Court (General Division)" and substituting "Superior Court of Justice".
201. Section 29 of the Act is amended by striking out "Ontario Court (General Division)" and substituting "Superior Court of Justice".
202. (1) Clause 31 (1) (c) of the Act, as amended by the Statutes of Ontario, 1993, chapter 12, section 9, is further amended,
(a) by striking out "a vendor or purchaser" and substituting "a vendor, purchaser or registrant"; and
(b) by striking out "such vendor or purchaser" wherever it occurs and substituting in each case "the vendor, purchaser or registrant".
(2) Clause 31 (2) (c) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 13, section 18, is amended by striking out "vendor or purchaser" and substituting "vendor, purchaser or registrant".
203. (1) Clause 32 (4) (b) of the Act is amended by striking out "vendor or purchaser" and substituting "vendor, purchaser or registrant".
(2) Clause 32 (4) (c) of the Act is amended by striking out "vendor or purchaser" and substituting "vendor, purchaser or registrant".
204. Subclause 34 (2) (a) (i) of the Act is amended by inserting "or registrant" after "as a purchaser".
205. (1) Subsection 36 (1) of the Act, as amended by the Statutes of Ontario, 1994, chapter 13, section 8, is repealed and the following substituted:
Garnishment
(1) When the Minister has knowledge or suspects that a person (a "third party") is, or within 365 days will become, indebted or liable to make any payment to a person (a "tax debtor") liable to make a payment or remittance under this Act, the Minister may, by registered letter or by letter served personally, require the third party to promptly pay to the Minister any money that is otherwise payable by the third party to the tax debtor in whole or in part during the 365 days after the third party receives the letter.
(2) Subsection 36 (2.1) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule D, section 11, is amended by striking out the portion before clause (a) and substituting the following:
Same
(2.1) Despite any provision of this or any other Act, when the Minister has knowledge or suspects that a person is, or within 365 days will become, indebted or liable to make any payment to,
. . . . .
(3) Subsections 36 (7) and (8) of the Act are repealed and the following substituted:
Service of garnishee
(7) If a person (a "third party") who is, or within 365 days will become, indebted or liable to make a payment to a person liable to make a payment or remittance under this Act carries on business under a name or style other than the third party's own name, the letter under this section from the Minister to the third party may be addressed using the name or style under which the third party carries on business and, in the case of personal service, the letter shall be deemed to have been validly served if it is left with an adult employed at the place of business of the addressee.
Same
(8) If persons ("partners") who are, or within 365 days will become, indebted or liable to make a payment to a person liable to make a payment or remittance under this Act carry on business in partnership, the letter under this section from the Minister to the partners may be addressed to the partnership name and, in the case of personal service, the letter shall be deemed to have been validly served if it is served on a partner or left with an adult employed at the place of business of the partnership.
(4) Subsection 36 (10) of the Act, as amended by the Statutes of Ontario, 1994, chapter 13, section 8, is further amended by striking out "a judge of the Ontario Court (General Division)" and substituting "the Superior Court of Justice".
206. (1) Subsection 37 (1) of the Act is amended by striking out "vendor or purchaser" in the portion before clause (a) and substituting "vendor, purchaser or registrant".
(2) Clause 37 (1) (b) of the Act is amended by striking out "Ontario Court (General Division)" and substituting "Superior Court of Justice".
207. (1) Clause 48 (3) (b) of the Act is amended by striking out "vendor or purchaser" and substituting "vendor, purchaser or registrant".
(2) Subsection 48 (3) of the Act, as amended by the Statutes of Ontario, 1993, chapter 12, section 14, 1994, chapter 13, section 25, 1996, chapter 18, section 18, 1997, chapter 10, section 34, 1997, chapter 19, section 22, 1997, chapter 43, Schedule D, section 14, 1998, chapter 5, section 47, 1999, chapter 9, section 189, 2000, chapter 42, section 95 and 2001, chapter 8, section 232, is further amended by adding the following clause:
(e.1) governing the matters described in subsection 3 (12) in connection with the transfer of a multijurisdictional vehicle;
(3) Clause 48 (3) (o) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 189, is amended by striking out "before December 31, 2000" and substituting "before January 1, 2001".
Commencement
208. (1) Subject to subsections (2) to (7), this Part comes into force on the day this Act receives Royal Assent.
Same
(2) Subsections 188 (1), (3) and (6) shall be deemed to have come into force on July 1, 1993.
Same
(3) Subsections 188 (5) and 192 (1) shall be deemed to have come into force on September 12, 1996.
Same
(4) Subsection 192 (2) shall be deemed to have come into force on May 7, 1997.
Same
(5) Subsection 207 (3) shall be deemed to have come into force on May 5, 1999.
Same
(6) The following provisions shall be deemed to have come into force on October 1, 2001:
1. Subsections 188 (2), (4) and (7).
2. Sections 191 and 193.
3. Subsections 194 (1), (2) and (4).
4. Section 196.
5. Sections 202, 203 and 204.
6. Subsections 206 (1) and 207 (1) and (2).
Same
(7) Subsection 192 (3) comes into force on a day to be named by proclamation of the Lieutenant Governor.
PART XXIV
SECURITIES ACT
209. Clause (b.1) of the definition of "reporting issuer" in subsection 1 (1) of the Securities Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 193, is repealed and the following substituted:
(b.1) that has filed a securities exchange take-over bid circular under this Act before December 14, 1999,
210. Subsection 17 (6) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 196, is repealed and the following substituted:
Disclosure in investigation or proceeding
(6) A person appointed to make an investigation or examination under this Act may disclose or produce anything mentioned in subsection (1), but may do so only in connection with,
(a) a proceeding commenced or proposed to be commenced by the Commission under this Act; or
(b) an examination of a witness, including an examination of a witness under section 13.
211. Paragraph 14 of subsection 35 (2) of the Act is repealed and the following substituted:
14. Securities issued by a mining company or a mining exploration company as consideration for mining claims,
i. where the vendor enters into such escrow or pooling agreement as the Director considers necessary, or
ii. where the security that is proposed to be issued, or the security underlying that security, is listed and posted for trading on a stock exchange recognized for the purpose of this paragraph by the Commission and the issuer has received (where required by the by-laws, rules or policies of that stock exchange) the consent of that stock exchange to the issuance of the security.
212. (1) Subsection 62 (1) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 19, section 23, is repealed and the following substituted:
Refiling of prospectus
(1) In this section,
"lapse date" means, with reference to a security that is being distributed under subsection 53 (1) or this section, the date that is 12 months after the date of the most recent prospectus relating to the security.
Same
(1.1) No distribution of a security to which subsection 53 (1) applies shall continue after the lapse date, unless a new prospectus that complies with this Part is filed and a receipt for the new prospectus is obtained from the Director.
(2) Subsection 62 (2) of the Act is amended by inserting "after a lapse date" after "twelve months" in the portion before clause (a).
(3) Subsection 62 (3) of the Act is amended by striking out "subsection (1)" and substituting "subsection (1.1)".
213. Clause 72 (1) (c) of the Act is amended by striking out "other than an individual".
214. Section 85 of the Act is amended by striking out "by prepaid mail".
215. Clause 86 (1) (a) of the Act is amended by striking out "by prepaid mail".
216. Subsection 130.1 (8) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 218, is repealed and the following substituted:
Application
(8) This section applies only with respect to an offering memorandum which has been furnished to a prospective purchaser in connection with a distribution of a security under an exemption from section 53 of the Act that is specified in the regulations for the purposes of this section.
217. The English version of paragraph 36 of subsection 143 (1) of the Act, as amended by the Statutes of Ontario, 1999, chapter 9, section 220, is further amended by striking out "to foreign issuers" and substituting "with respect to foreign issuers".
Commencement
218. This Part comes into force on the day this Act receives Royal Assent.
PART XXV
TOBACCO TAX ACT
219. Section 1 of the Tobacco Tax Act, as amended by the Statutes of Ontario, 1991, chapter 48, section 1, 1992, chapter 28, section 1, 1994, chapter 18, section 8, 1998, chapter 34, section 105 and 2000, chapter 42, section 97, is further amended by adding the following definitions:
"indicium" means a prescribed word or mark or both, and "indicia" means more than one indicium; ("timbre")
"tear tape" means the pressure-sensitive plastic ribbon that is wrapped around a package of cigarettes to facilitate the opening of the cellophane wrapping that encloses the package; ("languette")
"tear tape manufacturer" means a person who manufactures tear tape for use in respect of the manufacture or production of cigarettes in packages for sale in Ontario; ("fabricant de languettes")
220. The Act is amended by adding the following section:
Exemptions under other Acts
1.1 No person otherwise subject to tax under this Act is exempt therefrom by reason of an exemption granted to the person, or to or in respect of the personal or real property of the person, by or under any other Act, unless the other Act expressly mentions this Act.
221. (1) Subsection 6 (9) of the Act, as amended by the Statutes of Ontario, 1994, chapter 18, section 8, is further amended by striking out "subsection 2 (1)" and substituting "section 2".
(2) Subsection 6 (10) of the Act is amended by striking out "Ontario Court (General Division)" and substituting "Superior Court of Justice".
222. The Act is amended by adding the following section:
Permit to manufacture tear tape
7.1 (1) Every tear tape manufacturer shall apply, in a form approved by the Minister, for a permit to manufacture tear tape for use in Ontario and the Minister shall issue a permit to the tear tape manufacturer in the form and manner that the Minister requires.
Conditions and restrictions
(2) The Minister may, as a requirement for the issuance of a permit to manufacture tear tape, impose such reasonable conditions and restrictions that the Minister considers appropriate.
Change of business
(3) Every holder of a permit to manufacture tear tape shall forthwith notify the Minister in writing of all changes in the name or nature of the manufacturer's business or of the termination of the business.
Cancellation of permit
(4) The Minister may cancel or suspend a permit to manufacture tear tape if a tear tape manufacturer sells, distributes or delivers tear tape marked in accordance with the regulations to a person who is not the holder of a permit to mark or stamp cigarettes under section 8.
Requirements
(5) Every holder of a permit to manufacture tear tape shall,
(a) in accordance with the regulations, mark the tear tape the holder manufactures for use in Ontario; and
(b) account for and take reasonable steps to safeguard tear tape in its possession.
Prohibition
(6) No holder of a permit to manufacture tear tape shall sell, distribute or deliver tear tape marked in accordance with the regulations to a person unless the person holds a permit to mark or stamp cigarettes under section 8.
Penalty
(7) Every person who operates as a tear tape manufacturer without holding a permit to manufacture tear tape required by this section shall pay a penalty, when assessed for it, in an amount equal to the tax that would be payable under section 2, had the tear tape that the person manufactured for use in Ontario during the period when the person did not hold the permit to manufacture tear tape been affixed to packages of cigarettes and sold to a consumer liable to pay tax under this Act.
Same, holder of permit
(8) Every holder of a permit to manufacture tear tape who,
(a) fails to mark, in accordance with the regulations, the tear tape the holder manufactures for use in Ontario;
(b) fails to account for any tear tape in accordance with the regulations; or
(c) sells, distributes or delivers tear tape marked in accordance with the regulations to a person who does not hold a permit to mark or stamp cigarettes under section 8,
shall pay a penalty, when assessed for it, equal to the tax that would be payable under section 2, had the subject tear tape been affixed to packages of cigarettes and sold to a consumer liable to pay tax under this Act.
Offence
(9) Every person who manufactures tear tape for use in Ontario without holding a permit required by this section, or who, being the holder of such permit, contravenes any condition or restriction contained in the permit or any other requirement specified in this section, is guilty of an offence and on conviction is liable to a fine of not less than $1,000 and not more than $10,000.
223. (1) Section 8 of the Act is amended by adding the following subsection:
Tear tape acquisition
(7.1) Every holder of a permit to mark or stamp cigarettes shall obtain all tear tape used in marking packages of cigarettes for sale in Ontario from a holder of a permit to manufacture tear tape under section 7.1.
(2) Subsection 8 (8) of the Act is repealed and the following substituted:
Accounting for indicia
(8) Every holder of a permit to mark or stamp cigarettes shall, as required by the regulations, account for all indicia received from the Minister and all tear tape received from the holder of a permit to manufacture tear tape under section 7.1.
(3) Subsection 8 (9) of the Act is amended by inserting "or tear tape" after "Any indicia".
(4) Section 8 of the Act is amended by adding the following subsection:
Same, tear tape
(9.1) Every holder of a permit to mark or stamp cigarettes who obtains tear tape for use in Ontario from a person other than a holder of a permit to manufacture tear tape, shall pay a penalty, when assessed for it, equal to the tax that would be payable under section 2, had the tear tape obtained been affixed to packages of cigarettes and sold to a consumer liable to pay tax under this Act.
224. Subsection 9 (4) of the Act is repealed and the following substituted:
Penalty
(4) Every person who, being the holder of a permit to purchase and sell unmarked cigarettes, sells or permits the sale of unmarked cigarettes to another person who is liable to collect or to pay tax under this Act shall pay a penalty, when assessed therefor, equal to the tax that would be payable under section 2 if the cigarettes were marked cigarettes sold to a consumer in Ontario.
225. (1) Subsection 12 (1) of the Act is amended by inserting "to manufacture tear tape" after "mark or stamp cigarettes".
(2) Subsection 12 (2) of the Act, as amended by the Statutes of Ontario, 1998, chapter 34, section 106 and 2000, chapter 42, section 103, is further amended by striking out "and" at the end of clause (e), by adding "and" at the end of clause (f) and by adding the following clause:
(g) every person who applies for or is the holder of a permit to manufacture tear tape, in an amount specified by the Minister.
226. (1) The English version of subsection 13.2 (4) of the Act, as enacted by the Statutes of Ontario, 1992, chapter 28, section 1, is amended by striking out "customs officer" wherever it occurs in the portion before clause (a) and substituting in each case "customs officer or agent".
(2) Section 13.2 of the Act, as enacted by the Statutes of Ontario, 1992, chapter 28, section 1, is amended by adding the following subsection:
Liability of the Crown
(5) Despite subsections 5 (2) and (4) of the Proceedings Against the Crown Act, subsection (4) does not relieve Her Majesty in right of Ontario of a liability to which it would otherwise be subject in respect of a tort.
227. Subsection 16 (4) of the Act, as amended by the Statutes of Ontario, 1994, chapter 18, section 8, is repealed.
228. (1) Subsection 17 (1) of the Act is amended by striking out "or holder of a permit to mark or stamp cigarettes" in the portion before clause (a) and substituting "or holder of a permit to mark or stamp cigarettes, to manufacture tear tape".
(2) Subsection 17 (3) of the Act, as re-enacted by the Statutes of Ontario, 1994, chapter 18, section 8, is amended by inserting "except a return in respect of a permit to manufacture tear tape" after "subsection (1)".
(3) Section 17 of the Act, as amended by the Statutes of Ontario, 1994, chapter 18, section 8, is further amended by adding the following subsection:
Same, tear tape
(3.1) Every holder of a permit to manufacture tear tape who fails to deliver a return as required by subsection (1) shall pay a penalty of $1,000 for the return that the holder has failed to deliver.
(4) Subsection 17 (4) of the Act is amended by inserting "except a return in respect of a permit to manufacture tear tape" after "subsection (1)".
(5) Section 17 of the Act, as amended by the Statutes of Ontario, 1994, chapter 18, section 8, is further amended by adding the following subsection:
Same, tear tape
(4.1) Every holder of a permit to manufacture tear tape who fails to deliver a return as required under subsection (1) is guilty of an offence and on conviction is liable to a fine of not less than $500 and not more than $10,000.
229. (1) Subsection 19 (1) of the Act is amended by striking out "and" at the end of clause (b) and by adding the following clauses:
(b.1) any amount that a person is responsible to pay under subsection 14 (2);
(b.2) any amount for which a person is liable under subsection 24.1 (5); and
(2) Section 19 of the Act, as amended by the Statutes of Ontario, 1994, chapter 18, section 8 and 2000, chapter 42, section 108, is further amended by adding the following subsections:
Assessment re amounts held in trust
(1.1) The amount assessed under clause (1) (b.1) shall be deemed to be tax collectable, collected or payable, as the case may be, by the person.
Same
(1.2) The amount assessed under clause (1) (b.2) shall be deemed to be tax collectable or collected, as the case may be, by the person.
(3) Section 19 of the Act, as amended by the Statutes of Ontario, 1994, chapter 18, section 8 and 2000, chapter 42, section 108, is further amended by adding the following subsection:
Penalty for excess losses
(3.4) Every person who has excess unverifiable losses, determined in accordance with the regulations, shall pay a penalty, when assessed therefor, equal to the tax that would have been collectable by the person if the quantity of tobacco that exceeds the prescribed threshold for an unverifiable loss had been sold to a consumer liable to pay tax under this Act.
230. The Act is amended by adding the following section:
Assessment, non-arm's length transfers
19.1 (1) In this section,
"member of his or her family" means, in relation to a transferor, the parent, spouse, grandparent, child, grandchild, son-in-law, daughter-in-law, father-in-law or mother-in-law of the transferor; ("membre de sa famille")
"same-sex partner" means same-sex partner as defined in section 29 of the Family Law Act; ("partenaire de même sexe")
"spouse" means spouse as defined in section 29 of the Family Law Act. ("conjoint")
Liability to pay
(2) If at any time a person transfers property (including money), either directly or indirectly, by means of a trust or by any other means to a member of his or her family, to his or her same-sex partner, to an individual who is less than 18 years old at the time of the transfer, or to another person with whom the transferor is not dealing at arm's length, the transferor and transferee are jointly and severally liable to pay under this Act the amount determined under subsection (4).
Same
(3) For the purpose of subsection (2), persons shall be deemed not to deal with each other at arm's length if, by reason of subsections 251 (1) to (6) of the Income Tax Act (Canada), they are related to each other for the purposes of that Act.
Amount payable
(4) The amount referred to in subsection (2) is the lesser of "A" and "B" where,
"A" is the amount, if any, by which the fair market value of the property transferred, at the time of the transfer, exceeds the fair market value, at the time of the transfer, of the consideration given by the transferee for the transfer, and
"B" is the total of all amounts each of which is,
(a) any tax payable by the transferor under this Act at the time of the transfer or at any previous time but not paid,
(b) any tax collected, collectable or payable but not remitted or transmitted as required under this Act by the transferor for the reporting period during which the transfer took place or any previous reporting period,
(c) any penalty or interest for which the transferor is liable under this Act at the time of the transfer.
Same
(5) Nothing in subsection (2) or (4) limits the liability of the transferor or transferee under any other provision of this Act.
Assessment
(6) The Minister may assess a transferee at any time in respect of any amount payable by reason of this section, and sections 21 and 22 apply, with necessary modifications, to the assessment.
Effect of payment
(7) If a transferor and transferee are jointly and severally liable to pay an amount under this section,
(a) a payment by the transferee on account of the transferee's liability discharges the joint liability, to the extent of the payment; and
(b) a payment by the transferor on account of the transferor's liability under this Act discharges the transferee's liability under this section to the extent that the payment reduces the balance of the transferor's liability under this Act to an amount less than the amount of the transferee's liability under this section.
Exception
(8) Subsection (2) does not apply with respect to a transfer of property (including money) between spouses or same-sex partners,
(a) under a decree, order or judgment of a competent tribunal; or
(b) under a written separation agreement if, at the time of the transfer, the transferor and transferee were living separate and apart as a result of a breakdown of their relationship.
231. (1) Subsection 22 (1) of the Act is amended by striking out "Ontario Court (General Division)" and substituting "Superior Court of Justice".
(2) Subsection 22 (2) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 43, Schedule E, section 2, is amended by striking out "Ontario Court (General Division)" in the portion before clause (a) and substituting "Superior Court of Justice".
(3) Subsection 22 (9) of the Act is amended by striking out "Ontario Court (General Division)" and substituting "Superior Court of Justice".
232. (1) Section 22.1 of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 110, is amended by adding the following subsection:
Same, tear tape
(1.1) Every holder of a permit to mark or stamp cigarettes or to manufacture tear tape shall keep at its principal place of business in Ontario records and books of account in the form and containing the information that will enable the accurate determination of tear tapes that have been manufactured for use in Ontario or used in marking packages of cigarettes for sale in Ontario.
(2) Subsection 22.1 (2) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 110, is amended by inserting "or (1.1)" after "subsection (1)".
233. Section 23 of the Act, as amended by the Statutes of Ontario, 1992, chapter 28, section 1, 1994, chapter 18, section 8 and 2000, chapter 42, section 111, is further amended by adding the following subsection:
Investigation, tear tape manufacturer
(2.1) Every holder of a permit to manufacture tear tape shall permit any person authorized for the purpose by the Minister to,
(a) audit or examine any books and records and any account, voucher, letter, telegram or other document that may relate to the manufacture, sale, distribution or delivery of tear tape;
(b) examine the property described in an inventory or any other property, process or matter, the examination of which may, in the person's opinion, assist in determining the accuracy of an inventory or in ascertaining information that is or should be in the books or records or in a return, and
(c) examine any inventory of tear tape and materials used to manufacture tear tape.
234. (1) Subsection 24 (5) of the Act is amended by striking out "Ontario Court (General Division)" and substituting "Superior Court of Justice".
(2) Subsection 24 (12) of the Act is amended by striking out "subsection 2 (1)" and substituting "section 2".
235. Clause 25 (1) (b) of the Act is amended by striking out "Ontario Court (General Division)" and substituting "Superior Court of Justice".
236. (1) Subsection 25.1 (5) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 18, section 8, is amended,
(a) by striking out "third anniversary" and substituting "fifth anniversary"; and
(b) by striking out "three-year period" wherever it occurs and substituting in each case "five-year period".
(2) Subsection 25.1 (6) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 18, section 8, is repealed and the following substituted:
Same
(6) If taxes remain outstanding and unpaid at the end of the period, or its renewal, referred to in subsection (5), the Minister may register a renewal notice of lien and charge; the lien and charge remains in effect for a five-year period from the date the renewal notice is registered, until the amount is fully paid, and shall be deemed to be continuously registered since the initial notice of lien and charge was registered under subsection (2).
237. (1) Subsection 26 (1) of the Act, as amended by the Statutes of Ontario, 1994, chapter 18, section 8, is repealed and the following substituted:
Garnishment
(1) When the Minister has knowledge or suspects that a person (a "third party") is, or within 365 days will become, indebted or liable to make any payment to a person (a "tax debtor") liable to make a payment or remittance under this Act, the Minister may, by registered letter or by letter served personally, require the third party to promptly pay to the Minister any money that is otherwise payable by the third party to the tax debtor in whole or in part during the 365 days after the third party receives the letter.
(2) Subsection 26 (2.1) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule E, section 5, is amended by striking out the portion before clause (a) and substituting the following:
Same
(2.1) Despite any provision of this or any other Act, when the Minister has knowledge or suspects that a person is, or within 365 days will become, indebted or liable to make any payment to,
. . . . .
(3) Subsections 26 (4) and (5) of the Act are repealed and the following substituted:
Service of garnishee
(4) If a person (a "third party") who is, or within 365 days will become, indebted or liable to make a payment to a person liable to make a payment or remittance under this Act carries on business under a name or style other than the third party's own name, the letter under this section from the Minister to the third party may be addressed using the name or style under which the third party carries on business and, in the case of personal service, the letter shall be deemed to have been validly served if it is left with an adult employed at the place of business of the addressee.
Same
(5) If persons ("partners") who are, or within 365 days will become, indebted or liable to make a payment to a person liable to make a payment or remittance under this Act carry on business in partnership, the letter under this section from the Minister to the partners may be addressed to the partnership name and, in the case of personal service, the letter shall be deemed to have been validly served if it is served on a partner or left with an adult employed at the place of business of the partnership.
(4) Subsection 26 (7) of the Act, as amended by the Statutes of Ontario, 1994, chapter 18, section 8, is further amended by striking out "Ontario Court (General Division)" and substituting "Superior Court of Justice".
238. (1) Clause 28 (3) (b) of the Act is amended by adding at the end "or to manufacture tear tape".
(2) Clause 28 (3) (c) of the Act is amended by adding at the end "or to manufacture tear tape".
239. The English version of subsection 33 (1) of the Act is amended by striking out "tear-tape" and substituting "tear tape".
240. The English version of subsection 34 (1) of the Act is amended by striking out "tear-tape" and substituting "tear tape".
241. The Act is amended by adding the following section:
Prohibition, tear tape
34.1 (1) No person shall sell, distribute, deliver or have in the person's possession tear tape for use in Ontario unless permitted under this Act or the regulations to do so.
Same, marking
(2) No person shall sell, distribute, deliver or have in the person's possession tear tape that is not marked in accordance with this Act or the regulations or with the requirements of another jurisdiction.
Penalty
(3) Every person who fails to comply with subsection (1) or (2) shall pay a penalty, when assessed for it, equal to the tax that would be payable under section 2, had the subject tear tape been manufactured in accordance with the Act or regulations, affixed to packages of cigarettes and sold to a consumer liable to pay tax under this Act.
Offence
(4) Every person who contravenes subsection (1) or (2) is guilty of an offence and on conviction is liable to a fine of not less than $1,000 and not more than $10,000, or to a term of imprisonment of not more than two years, or to both.
242. Section 39 of the Act, as amended by the Statutes of Ontario, 1997, chapter 43, Schedule E, section 8, is further amended by adding the following subsections:
Exception
(1.1) The documents referred to in clause (1) (c) are not required to accompany an application for a refund for a particular calendar year if the total of all refunds sought by the applicant for the calendar year is not more than $500.
Same
(1.2) The applicant for a refund is required to keep the documents referred to in subsection (1.1) for seven years after the date of the application and is required to give them to the Minister upon request.
243. (1) Clause 41 (1) (f) of the Act is repealed and the following substituted:
(f) prescribing words or marks or both as indicia and the means by which they shall be included on or as part of the packaging of cigarettes, cigars or other tobacco intended to be sold in Ontario, indicating that the cigarettes, cigars or other tobacco are taxable or exempt from tax under this Act, as the case may be, and prescribing the location of the indicia on or as part of the packaging;
(2) Subsection 41 (2) of the Act, as amended by the Statutes of Ontario, 1997, chapter 19, section 25 and 2000, chapter 42, section 116, is further amended by adding the following clause:
(a.3) prescribing one or more methods for calculating unverifiable losses and excess unverifiable losses, for the purposes of subsection 19 (3.4), and prescribing one or more thresholds for the purposes of that subsection;
(3) Clause 41 (2) (c) of the Act is repealed and the following substituted:
(c) prescribing the responsibilities of holders of permits to mark or stamp cigarettes and holders of permits to manufacture tear tape for the receipt, use of and the accounting for indicia and tear tape;
Commencement
244. (1) Subject to subsections (2), (3) and (4), this Part comes into force on the day this Act receives Royal Assent.
Same
(2) Subsections 221 (1) and 234 (2) shall be deemed to have come into force on May 7, 1997.
Same
(3) Section 242 shall be deemed to have come into force on May 9, 2001.
Same
(4) The following provisions come into force on a day to be named by proclamation of the Lieutenant Governor:
1. Sections 219, 222, 223, 225, 228, 232, 233, 238, 239, 240 and 241.
2. Subsections 243 (1) and (3).
PART XXVI
COMMENCEMENT AND SHORT TITLE
Commencement
245. (1) Subject to subsections (2) and (3), 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) The Act set out in each Schedule to this Act comes into force as provided in the commencement section near the end of the Schedule.
Same
(4) If a Part or Schedule provides that any provisions are to come into force on a day to be named by the Lieutenant Governor, a 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
246. The short title of this Act is the Responsible Choices for Growth and Fiscal Responsibility Act (Budget Measures), 2001.
SCHEDULE A
GO TRANSIT ACT, 2001
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CONTENTS |
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Definitions |
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1. |
Definitions |
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GO Transit - Continuation |
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2. 3. 4. 5. 6. 7. 8. |
GO Transit continued Crown agency Objects of GO Transit Board of directors Chair, vice-chairs Meetings of board Ministerial directives |
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Powers and Duties of GO Transit |
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9. 10. 11. |
Powers of GO Transit By-laws re provision of transit services By-laws regulating use of regional transit system |
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Financial Matters |
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12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. |
Fiscal year Auditor Budget Payments to Consolidated Revenue Fund Borrowing and investing by-law Agreement for transferring property Asset sales Province authorized to raise funds for GO Transit Purchases and advances by Province Agreement to apply appropriated funds Appropriation by Legislature |
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General Matters |
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23. 24. 25. |
Staff and consultants Annual report Immunity from civil actions |
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Application of Other Acts |
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26. 27. 28. 29. 30. |
Corporations Act, Corporations Information Act Business Corporations Act Crown Employees Collective Bargaining Act, 1993, Public Service Act Municipal Act Public Vehicles Act |
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Regulations |
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31. |
Regulations |
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Dissolution of Greater Toronto |
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32. |
Dissolution of Greater Toronto Services Board |
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Transitional Matters |
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33. 34. 35. |
Rights and obligations continued Employees continued Transition - development charge by-laws |
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Consequential Amendments |
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36. 37. 38. |
City of Hamilton Act, 1999 Social Housing Reform Act, 2000 Toronto Area Transit Operating Authority Act |
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Commencement and Short title |
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39. 40. |
Commencement Short title |
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______________ |
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Definitions
Definitions
1. In this Act,
"GO Transit" means the Greater Toronto Transit Authority continued under section 2; ("Réseau GO")
"local transit system" means a passenger transportation system that is operated principally to provide transportation within an upper-tier, lower-tier or single-tier municipality; ("réseau local de transport en commun")
"lower-tier municipality" means a municipality that forms part of an upper-tier municipality for municipal purposes; ("municipalité de palier inférieur")
"Minister" means the Minister of Transportation or such other member of the Executive Council to whom the administration of this Act may be assigned under the Executive Council Act; ("ministre")
"municipality" includes a regional and district municipality and the County of Oxford; ("municipalité")
"regional transit area" means the area prescribed by regulation; ("secteur régional de transport en commun")
"regional transit system" means the passenger transportation system that is operated principally to provide transportation, including commuter services, within the regional transit area; ("réseau régional de transport en commun")
"security" includes any interest, document, instrument or writing commonly known as a security, or any document that evidences a debt or any right or interest in relation to a debt; ("valeur mobilière")
"single-tier municipality" means a municipality other than an upper-tier municipality that does not form part of an upper-tier municipality for municipal purposes; ("municipalité à palier unique")
"upper-tier municipality" means a municipality of which two or more municipalities form part for municipal purposes. ("municipalité de palier supérieur")
GO Transit - Continuation and
General Governance
GO Transit continued
2. (1) The corporation without share capital known as Greater Toronto Transit Authority in English and as Régie des transports en commun du grand Toronto in French is continued.
Composition
(2) GO Transit is composed of the members of its board of directors.
Crown agency
3. (1) GO Transit is a Crown agency within the meaning of the Crown Agency Act.
No proceeding against Crown
(2) No proceeding shall be commenced against the Crown in respect of any act or omission of GO Transit or any of its subsidiary corporations or their officers, directors or employees.
Exception
(3) Subsection (2) does not apply to a proceeding to enforce against the Crown its obligations under a written contract to which it is a party.
Unpaid judgments against GO Transit
(4) The Minister of Finance shall pay from the Consolidated Revenue Fund the amount of any judgment against GO Transit that remains unpaid after GO Transit has made all reasonable efforts to pay the amount of the judgment.
Objects of GO Transit
4. (1) The objects of GO Transit are,
(a) to operate or cause to be operated a regional transit system serving the regional transit area and from time to time serving municipalities not in the regional transit area under agreements between GO Transit and the other municipalities;
(b) to operate or cause to be operated local transit systems or parts of such systems within the regional transit area under agreements between GO Transit and the municipalities within which each local transit system is operated; and
(c) to facilitate the integration of the operation or design of the regional transit system and local transit systems, including facilitating the integration of routes, fares and schedules.
Additional objects
(2) The Minister may by regulation prescribe additional objects of GO Transit.
Board of directors
5. (1) The affairs of GO Transit shall be managed by its board of directors.
Composition
(2) The board of GO Transit shall be composed of not less than 13 and not more than 15 persons, to be appointed by the Lieutenant Governor in Council on the recommendation of the Minister.
Same
(3) The members of the board of GO Transit may include any persons that the Minister considers appropriate, including persons who are members of the councils of upper-tier or single-tier municipalities, employees of upper-tier or single-tier municipalities or of local boards or agencies of upper-tier or single-tier municipalities and public servants within the meaning of the Public Service Act.
Term of office
(4) The members of the board shall hold office at pleasure for a term not exceeding three years and may be reappointed for successive terms not exceeding three years each.
First members
(5) Despite subsection (4), the first members of the board to be appointed under this Act shall hold office at pleasure for a maximum term determined by the Minister.
Quorum
(6) A majority of the members of the board constitutes a quorum.
Committees
(7) The board may establish committees that it considers appropriate and may determine the composition and functions of the committees.
Remuneration
(8) The members of the board who are not members of the councils of upper-tier or single-tier municipalities, employees of such municipalities or of any local boards or agencies of such municipalities or public servants shall be paid such remuneration as is determined by the Lieutenant Governor in Council.
Termination of current board
(9) The terms of office of the members of the board in office immediately before January 1, 2002 are hereby terminated.
Chair, vice-chairs
6. (1) The Minister shall designate one of the members of the board as the chair and one or more members of the board as vice-chairs.
Acting chair
(2) If the chair is absent or unable to act or if the office of chair is vacant, a vice-chair shall act as and have all the powers of the chair.
Same
(3) If the chair and vice-chairs are absent from a board meeting, the members present at the meeting shall appoint an acting chair from among themselves to act as and to have all the powers of the chair during the meeting.
Benefits
(4) If the chair is not a member of the council of an upper-tier or single-tier municipality, an employee of such municipality or of a local board or agency of such municipality or a public servant, the chair shall be entitled to participate in any scheme GO Transit has for providing benefits, including pension benefits, to its employees.
Meetings of board
7. (1) The board of directors of GO Transit shall meet at the call of the chair and, in any event, at least four times a year.
First meeting
(2) The board shall hold its first meeting by February 28, 2002.
Voting rights
(3) Each member of the board, including the chair, has one vote.
By-laws re proceedings
(4) The board may make by-laws governing its proceedings, including by-laws governing the holding of electronic meetings such that all persons participating in the electronic meeting may communicate with each other simultaneously and instantaneously.
Ministerial directives
8. (1) The Minister may issue directives in writing to GO Transit in respect of any matter under this Act.
Implementation
(2) The board of directors of GO Transit shall ensure that the directives are implemented.
Powers and Duties of GO Transit
Powers of GO Transit
9. (1) GO Transit may, for the purpose of carrying out its objects,
(a) design, construct and operate or cause to be operated a regional transit system for the regional transit area;
(b) initiate studies in respect of,
(i) the design, construction and operation of the regional transit system,
(ii) the fare structure and service schedules of the regional transit system, and
(iii) the operational integration of the regional transit system with local transit systems within or outside the regional transit area;
(c) subject to the approval of the Minister, operate or cause to be operated a local transit system within the regional transit area under an agreement between GO Transit and the municipality within which the local transit system is operated;
(d) subject to the approval of the Minister, provide transit services to a municipality outside the regional transit area under an agreement between GO Transit and the municipality;
(e) provide the transit services outside the regional transit area that were being provided by GO Transit as of December 31, 2001;
(f) acquire by purchase, lease or otherwise any transit vehicles, equipment or other personal property;
(g) acquire real property by purchase, lease, expropriation or otherwise;
(h) construct, maintain or alter any building or works;
(i) acquire rights and privileges that it may think necessary or convenient;
(j) sell, lease or otherwise dispose of transit vehicles, equipment, other personal property or real property;
(k) establish, construct, manage and operate parking lots for the parking of vehicles in connection with the regional transit system;
(l) enter into agreements with any government or government agency or with any individual, municipality, corporation, partnership or association,
(i) for the leasing, with or without drivers, of transit vehicles owned or leased by GO Transit, or
(ii) for a purpose related to its objects;
(m) obtain from the individual or body who is a party to an agreement under clause (l) any rights, privileges or concessions;
(n) subject to the approval of the Lieutenant Governor in Council, establish subsidiary corporations in Ontario or elsewhere for a purpose related to its objects.
Payment by municipalities
(2) A municipality that enters into an agreement under clause (1) (c) or (d) may agree to pay to GO Transit all or any portion of the operating or capital expenditures required to meet the terms of the agreement.
Continuing duty to lease rolling stock
(3) GO Transit shall continue leasing, by one or more agreements with the Toronto Area Transit Operating Authority, the railway rolling stock that is subject to the six conditional sale agreements described in clause 73 (5) (a) of the Greater Toronto Services Board Act, 1998, as it read immediately before January 1, 2002, in accordance with the terms of those conditional sale agreements.
Maintenance, etc., of rolling stock
(4) The agreements required by subsection (3) must require GO Transit to maintain, modify and insure the railway rolling stock in accordance with the requirements of Articles 7, 8 and 11 of the applicable conditional sale agreement.
Definition
(5) In subsection (1),
"transit vehicles" includes railway rolling stock.
By-laws re provision of transit services
10. (1) The board of directors of GO Transit shall, by by-law,
(a) establish the approximate location, routes and frequencies of the transit services provided;
(b) establish the fares that shall be charged for transit services; and
(c) establish the fees that shall be charged for the provision of parking.
Notice of changes
(2) GO Transit shall give written notice to the Minister before it passes a by-law under subsection (1) that,
(a) changes or proposes to change the location, route or frequency of a transit service;
(b) changes or proposes to change the fares charged for a transit service;
(c) changes or proposes to change the fees charged for the provision of parking;
(d) terminates or proposes to terminate a transit service; or
(e) closes or proposes to close a parking lot.
By-laws regulating use of regional
transit system
11. (1) The board of directors of GO Transit may pass by-laws with respect to the regional transit system,
(a) prohibiting or regulating the use of any of its land and prohibiting or regulating vehicular and pedestrian traffic on any of its land;
(b) requiring and providing for the issuance of permits and licences and providing for the granting of rights with respect to the use of any of its land and providing for the revocation of such a permit, licence or right;
(c) prescribing the fees or rentals payable for a permit, licence or right issued or granted with respect to any of its land;
(d) governing the terms and conditions upon which tickets may be sold; and
(e) governing the conduct of passengers and with respect to refusing passage to persons who do not comply with the by-laws or the terms and conditions upon which tickets are sold.
Offence
(2) A by-law passed under subsection (1) may provide that any person who contravenes the by-law is guilty of an offence.
Motor vehicle owner and driver liable for penalties
(3) A by-law passed under clause (1) (a) prohibiting or regulating vehicular traffic may provide that the owner of a motor vehicle may be charged with and convicted of a contravention of the by-law for which the driver of the vehicle is subject to be so charged unless, at the time of the contravention, the vehicle was in the possession of some person other than the owner without the owner's consent, and, on conviction, the owner is liable to the penalty for the offence set out in the by-law.
Voluntary payment of penalties
(4) A by-law passed under clause (1) (a) prohibiting or regulating vehicular traffic or under clause (1) (e) may provide a procedure for the voluntary payment of penalties out of court with respect to an alleged contravention of the by-law.
Statement of proof
(5) For the purpose of a prosecution or proceeding under a by-law concerning the issuance or granting of a permit, licence or right, a statement as to the issuance or granting of the permit, licence or right purported to be signed by the managing director of GO Transit or his or her designate is, without proof of the office or signature of the managing director or his or her designate, receivable in evidence as proof, in the absence of evidence to the contrary, of the facts stated in the statement for all purposes in the prosecution or proceeding.
Appointment of officers
(6) GO Transit may appoint in writing one or more of its employees as an officer or officers for the purposes of carrying out the by-laws passed under subsection (1), and any person so appointed is a constable for that purpose and for the purposes of section 33 of the Highway Traffic Act.
Certificate of appointment
(7) A person appointed under subsection (6) shall, while carrying out his or her duties under the appointment, have in his or her possession a certificate of the appointment and shall produce the certificate upon request.
Municipal Act
(8) Sections 324 (fines), 325 (proof of the by-law), 327 (power to restrain by order when conviction entered) and 330.1 (by-law authorizing collection of unpaid licensing fines) of the Municipal Act apply with necessary modifications to by-laws passed under this section.
Financial Matters
Fiscal year
12. The fiscal year of GO Transit is April 1 to March 31 of the following year.
Auditor
13. (1) The board of GO Transit shall appoint one or more persons licensed under the Public Accountancy Act to audit the accounts and transactions of GO Transit for the previous fiscal year.
Same
(2) The Provincial Auditor or another person licensed under the Public Accountancy Act and appointed by the Minister shall audit the accounts and transactions of GO Transit's subsidiaries for the previous fiscal year.
Same
(3) The Minister may at any time direct that the accounts and transactions, for a specified period, of GO Transit or of any of its subsidiary corporations be audited by a person licensed under the Public Accountancy Act, other than a person appointed under subsection (1) or (2).
Budget
14. (1) On or before August 31 in each year, or another date specified by the Minister, GO Transit shall submit its budget to the Minister for his or her approval.
Same
(2) The budget shall be in the form and contain the information required by the Minister and shall cover the period of time specified by the Minister.
Additional financial information
(3) GO Transit shall, if requested by the Minister at any time, provide the Minister with additional financial information.
Payments to Consolidated Revenue Fund
15. (1) When ordered to do so by the Minister of Finance, GO Transit shall pay into the Consolidated Revenue Fund such of its surplus funds as are determined by the Minister of Finance.
Reserves
(2) In determining the amount payable under subsection (1), the Minister of Finance shall allow such reserves for the future needs of GO Transit as he or she considers appropriate, and shall ensure that the payment ordered under subsection (1) will not impair GO Transit's abilities to carry out its objects, to pay its liabilities, to meet its obligations as they become due or to fulfil its contractual commitments.
Borrowing and investing by-law
16. (1) The power of GO Transit and its subsidiary corporations to borrow, issue securities, make short-term investments of funds, manage risk associated with financing and investment or incur liabilities in order to facilitate financing by others may only be exercised under the authority of a by-law that has been approved by the Minister of Finance.
Co-ordination of financing activities
(2) All borrowing, financing, short-term investment of funds and financial risk management activities of GO Transit and its subsidiary corporations shall be co-ordinated and arranged by the Ontario Financing Authority, unless the Minister of Finance agrees otherwise.
Agreement for transferring property
17. Despite any other Act, real or personal property used, owned or occupied by the Crown in connection with the carrying out of an activity to be carried out by GO Transit or any of its subsidiary corporations may be transferred to GO Transit or its subsidiary corporations, with or without consideration, upon such terms as are approved by the Management Board of Cabinet.
Asset sales
18. (1) GO Transit shall not sell or otherwise dispose of all or substantially all of its assets unless the sale or disposal is for the purpose of providing security for money loaned to GO Transit or is part of a financing transaction that entitles GO Transit, on fulfilling the terms and conditions of the transaction, to reacquire the assets sold or disposed of.
Exception
(2) Subsection (1) does not apply to a sale or disposition to the Crown.
Province authorized to raise funds for GO Transit
19. The Lieutenant Governor in Council may raise by way of loan in the manner provided by the Financial Administration Act such sums as the Lieutenant Governor in Council considers necessary for the purposes of this Act, and the sums so raised may either be advanced to GO Transit or its subsidiary corporations or applied by the Minister of Finance in the purchase of securities issued by GO Transit or its subsidiary corporations.
Purchases and advances by Province
20. (1) The Minister of Finance may purchase securities of or make loans to GO Transit or its subsidiary corporations in such amounts, at such times and on such terms and conditions as the Lieutenant Governor in Council considers expedient.
Same
(2) The Minister of Finance may pay from the Consolidated Revenue Fund the money necessary for a purchase or loan made under subsection (1).
Agreement to apply appropriated funds
21. (1) As security for the payment by a public body, as defined in subsection (3), of any amount that it has agreed to pay to GO Transit or one of its subsidiary corporations on account of its indebtedness to GO Transit or its subsidiary corporation, a public body may agree in writing with GO Transit or the subsidiary corporation that the Minister of Finance is entitled to deduct from money appropriated by the Legislature for payment to the public body amounts equal to any amounts that the public body fails to pay to GO Transit or the subsidiary corporation on account of the indebtedness.
Minister to make agreed deduction
(2) If a public body has agreed to the making of a deduction under subsection (1), the Minister of Finance shall deduct from money appropriated by the Legislature for payment to the public body amounts equal to any amounts that the public body fails to pay to GO Transit or its subsidiary corporation, and shall pay the amounts to GO Transit or its subsidiary corporation.
Definition - public body
(3) In subsections (1) and (2),
"public body" means a corporation referred to in section 2 of the Capital Investment Plan Act, 1993 and any other Crown agency, a hospital as defined in the Public Hospitals Act and any other facility receiving funding for capital purposes from the Minister of Health and Long-Term Care, a municipality, a university, a college of applied arts and technology, Algoma University College, le Collège de Hearst, the Ontario Institute for Studies in Education, Ryerson Polytechnic University, the Ontario College of Art, a school board or an entity named or described as a public body in the regulations made under the Capital Investment Plan Act, 1993.
Appropriation by Legislature
22. The money required for the purposes of this Act before April 1, 2002 shall be paid out of the Consolidated Revenue Fund and thereafter shall be paid out of such money as is appropriated therefor by the Legislature.
General Matters
Staff and consultants
23. (1) GO Transit shall employ a managing director and may employ other officers and employees and retain technical and professional consultants that it considers necessary to carry out its objects at the remuneration and upon the terms approved by GO Transit.
Managing director duties, etc.
(2) The managing director shall be the chief executive officer of GO Transit and shall carry out the other duties and responsibilities established by GO Transit.
Pensions
(3) GO Transit may provide pensions for its permanent and full-time probationary staff and for that purpose GO Transit shall be deemed to be an employer under the Ontario Municipal Employees Retirement System Act.
Annual report
24. (1) On or before July 31 in each year, or another date specified by the Minister, GO Transit shall submit to the Minister and to the Minister of Finance an annual report on its affairs and the affairs of its subsidiary corporations for the previous fiscal year, signed by the chair of the board of directors.
Contents
(2) The annual report shall be in the form required by the Minister and shall include the audited financial statements of GO Transit and its subsidiary corporations for the fiscal year and any other information that the Minister may require.
Tabling in the Assembly
(3) The Minister shall table the report before the Assembly within 60 days after receiving it if it is in session or, if not, at the next session.
Other reports
(4) GO Transit and its subsidiary corporations shall, if requested by the Minister at any time, report to him or her on any aspect of their affairs.
Reviews
(5) The Minister may appoint one or more persons to review any of the activities or proposed activities of GO Transit or any of its subsidiary corporations and to report on it to the Minister.
Immunity from civil actions
25. No action or other proceeding shall be brought against a director of GO Transit or of any of its subsidiary corporations or any officer or employee of GO Transit or its subsidiary corporations, as a result of any act done in good faith in the performance or intended performance of any duty under this Act, or in the exercise or intended exercise of any power under this Act, or any neglect or default in the performance or exercise in good faith of such duty or power, but any such action or proceeding may be brought against GO Transit or its subsidiary corporation, as the case may be.
Application of Other Acts
Corporations Act,
Corporations Information Act
26. (1) Except as provided in subsection (2), the Corporations Act and the Corporations Information Act do not apply to GO Transit.
Sections that apply
(2) The Minister may by regulation specify provisions of the Corporations Act that apply to GO Transit with necessary modifications.
Business Corporations Act
27. Sections 129, 132 and 136 of the Business Corporations Act apply to GO Transit and to its directors and officers.
Crown Employees Collective Bargaining Act, 1993,
Public Service Act
28. GO Transit is an agency of the Crown to which the Crown Employees Collective Bargaining Act, 1993 applies and its employees are Crown employees for the purposes of that Act and the Public Service Act.
Municipal Act
29. (1) Sections 127 (authentication of by-laws), 134 (promulgation of by-laws) and 135 to 138 (quashing by-laws) of the Municipal Act apply to GO Transit with necessary modifications.
Same
(2) For the purpose of subsection (1), a reference in a provision of the Municipal Act referred to in that subsection to an official of a municipality shall be read as a reference to an employee of GO Transit designated by GO Transit by by-law for that purpose.
Public Vehicles Act
30. Section 2 of the Public Vehicles Act does not apply to GO Transit or to any person providing transit services on GO Transit's behalf.
Regulations
Regulations
31. The Minister may make regulations,
(a) prescribing the area that comprises the regional transit area;
(b) exempting any method of transportation or any type of vehicle from the application of this Act;
(c) respecting any matter that the Minister considers necessary or advisable to carry out effectively the intent and purpose of this Act.
Dissolution of Greater Toronto
Services Board
Dissolution of Greater Toronto Services Board
32. (1) The Greater Toronto Services Board, established under section 2 of the Greater Toronto Services Board Act, 1998, is hereby dissolved on December 31, 2001.
Members terminated
(2) The terms of office of the members of the Greater Toronto Services Board who are in office immediately before the dissolution are terminated on December 31, 2001.
Final annual report
(3) Despite the dissolution of the Greater Toronto Services Board, the chair and executive director of the Greater Toronto Services Board who held office immediately before the dissolution shall prepare and deliver the annual report for the year ending on December 31, 2001, as required by section 32 of the Greater Toronto Services Board Act, 1998, as it read immediately before the dissolution.
Other filings
(4) The chair and executive director of the Greater Toronto Services Board who held office immediately before the dissolution shall make any other filings or reports that would have been required of the Greater Toronto Services Board under the Greater Toronto Services Board Act, 1998, as it read immediately before the dissolution, in respect of the period ending December 31, 2001.
By-laws
(5) The by-laws of the Greater Toronto Services Board respecting GO Transit that were made under the Greater Toronto Services Board Act, 1998 and that are in force immediately before the dissolution of the Greater Toronto Services Board shall be deemed to have been made by GO Transit under this Act and shall remain in force until they are amended or repealed by by-law or by resolution of GO Transit under this Act or by a regulation made by the Minister.
Continued immunity
(6) No action or other proceeding for damages shall be brought against a former member, officer or employee of the Greater Toronto Services Board as a result of any act done in good faith in the performance or intended performance of any duty under the Greater Toronto Services Board Act, 1998, or in the exercise or intended exercise of any power under that Act, or any neglect or default in the performance or exercise in good faith of such duty or power.
Regulations
(7) The Minister may make regulations for the purposes of subsection (5), and a regulation prevails over a by-law or resolution of GO Transit under this Act.
Transitional Matters
Rights and obligations continued
33. (1) Despite any changes to GO Transit resulting from this Act and subject to subsection 34 (5), all the rights and obligations of GO Transit, including contractual rights, interests, approvals, registrations and entitlements, that exist immediately before January 1, 2002 continue to be the rights and obligations of GO Transit after this Act comes into force, without compensation.
No change of control
(2) The changes to GO Transit resulting from this Act shall not constitute a change of control of GO Transit for the purpose of any right or obligation of GO Transit referred to in subsection (1).
By-laws continued
(3) The by-laws that were made by GO Transit under the Greater Toronto Services Board Act, 1998 and that are in force immediately before January 1, 2002 are continued as by-laws made by GO Transit under this Act and shall remain in force until they are amended or repealed by by-law or by resolution of GO Transit under this Act or by a regulation made by the Minister.
Regulations
(4) The Minister may make regulations for the purposes of subsection (3), and a regulation prevails over a by-law or resolution of GO Transit under this Act.
Employees continued
34. (1) For all purposes, including the purposes of an employment contract, a collective agreement and the Employment Standards Act, 2000, the employment of the employees of GO Transit immediately before January 1, 2002 is not terminated and those employees are not constructively dismissed because of any changes resulting from this Act.
Same
(2) For all purposes and except as provided in subsections (4) and (5), the employment of the employees of GO Transit immediately before and immediately after January 1, 2002 is continuous.
Same
(3) Except as provided in subsections (4) and (5), the terms and conditions of employment for each of the employees of GO Transit immediately before January 1, 2002 continue to be the terms and conditions of their employment as of January 1, 2002.
Exception - conditions dependent on union
(4) For those employees of GO Transit who, immediately before January 1, 2002, were represented by a trade union, the provisions of a collective agreement that cannot apply to an employment relationship in the absence of trade union representation, including provisions dealing with the payment of union dues and the filing, processing and arbitration of grievances, cease to be terms and conditions of those employees' employment as of January 1, 2002.
Trade union representation terminated
(5) Any trade union that, immediately before January 1, 2002, had bargaining rights in respect of employees of GO Transit ceases, as of January 1, 2002, to have any rights, interests, registrations, duties or liabilities under the Labour Relations Act, 1995 in regards to the employees of GO Transit or under any collective agreement between it and GO Transit.
Transition - development charge by-laws
35. (1) Amounts that were deemed, by section 69 of the Greater Toronto Services Board Act, 1998, as it read immediately before January 1, 2002, to be capital costs for the purposes of subsection 5 (3) of the Development Charges Act, 1997 shall be deemed to be capital costs for the purposes of subsection 5 (3) of the Development Charges Act, 1997 and may be collected by a municipality under a development charge by-law passed before, or after, January 1, 2002.
Regulation
(2) The Lieutenant Governor in Council may, by regulation, prescribe a date after which no amount is payable in respect of GO Transit under a development charge by-law, and may prescribe different dates for different municipalities.
Deemed capital costs
(3) If a municipality agrees to pay a capital cost that is required for the purposes of this Act, the amount that the municipality agrees to pay shall be deemed to be a capital cost for the purposes of subsection 5 (3) of the Development Charges Act, 1997.
Consequential Amendments
City of Hamilton Act, 1999
36. Paragraph 6 of subsection 11.12 (2) of the City of Hamilton Act, 1999, as enacted by the Statutes of Ontario, 2000, chapter 5, section 3, is repealed and the following substituted:
6. A regional transit system as defined in section 1 of the GO Transit Act, 2001.
Social Housing Reform Act, 2000
37. (1) Subsections 138 (4), (5) and (6) of the Social Housing Reform Act, 2000 are repealed and the following substituted:
Review
(4) If the Minister determines that the allocation is reviewable, a review may be undertaken in accordance with the regulations.
(2) Subsection 174 (1) of the Act is amended by adding the following paragraph:
21. Governing a review of an allocation for the purposes of subsection 138 (4) (review).
Toronto Area Transit Operating Authority Act
38. Section 7 of the Toronto Area Transit Operating Authority Act, as re-enacted by the Statutes of Ontario, 1998, chapter 23, section 72, is repealed and the following substituted:
Transfer of rolling stock if necessary
7. (1) GO Transit shall transfer, to the Authority, good title in a unit of railway rolling stock that vested in GO Transit under subsection 73 (2) of the Greater Toronto Services Board Act, 1998, as it read immediately before January 1, 2002, free and clear of all liens and encumbrances if the Authority requires a unit of railway rolling stock as a replacement unit under Article 10.1 of any of the conditional sale agreements described in clause 5 (a).
Transfer is without compensation
(2) If GO Transit is required to transfer title in a unit of railway rolling stock it shall do so without compensation.
Definition
(3) In this section,
"GO Transit" means the Greater Toronto Transit Authority continued under section 2 of the Go Transit Act, 2001.
Commencement and Short Title
Commencement
39. (1) Subject to subsection (2), the Act set out in this Schedule comes into force on January 1, 2002.
Same
(2) Sections 32 and 37 come into force on December 31, 2001.
Short title
40. The short title of the Act set out in this Schedule is the GO Transit Act, 2001.
SCHEDULE B
HIGHWAY 407 EAST
COMPLETION ACT, 2001
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CONTENTS |
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Interpretation |
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|
1. |
Definitions |
|
Transfer and Agreements |
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|
2. 3. 4. 5. 6. 7. 8. 9. |
Transfer of assets Necessary authority Owner's rights limited by agreements Fee simple Non-application of Expropriations Act Delegation Evidence Crown as owner |
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Designation of the |
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|
10. |
Private toll highway |
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Tolling and Enforcement |
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11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. |
Person responsible for payment of toll Powers of owner When payment due Failure to pay toll Dispute Appointment of dispute arbitrator Appeal Repayment of paid tolls Interest on unpaid tolls Registrar notified of failure to pay toll Statutory Powers Procedure Act Documents Other remedies Assignment of agreements |
|
Management of Highway |
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|
25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. |
Interpretation Owner to manage Intersecting highways Intersecting King's Highways Relocation of road Drainage Highway closure Power to enter on land, etc. Removal of obstructions Control of Highway 407 East Completion lands Construction zone Conformity with safety standards Inspection Ministry of Transportation undertakes work Higher standard Vehicle safety Immunity |
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Liability |
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42. |
Liability |
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Expropriation and Expansion |
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|
43. 44. |
Expropriation Expansion and extension |
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Application of Other Laws |
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45. 46. 47. 48. 49. 50. 51. 52. 53. 54. 55. 56. 57. 58. 59. 60. 61. 62. |
Approvals and agreements Environmental Assessment Act Road authority Aggregate Resources Act Building Code Act, 1992 Conservation Authorities Act Emergency Plans Act Freedom of information Highway Traffic Act - tow truck services Highway Traffic Act - application of Motorized Snow Vehicles Act Off-Road Vehicles Act Police Services Act Public Utilities Act Public Service Works on Highways Act Municipal by-laws Ontario Planning and Development Act, 1994 Planning Act orders |
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Regulations |
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63. |
Regulations |
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Consequential Amendment |
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64. |
Highway 407 Act, 1998 |
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Commencement and Short title |
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|
65. 66. |
Commencement Short title |
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_____________ |
|
Interpretation
Definitions
1. (1) In this Act,
"expand" includes the building of additional lanes, the adding or expanding of interchanges, the construction of tunnels and bridges and other structures and the making of other improvements, and "expansion" has a corresponding meaning; ("élargir", élargissement")
"extend" means the construction of linear additions, and "extension" has a corresponding meaning; ("prolonger", "prolongement")
"Highway 407" means Highway 407, as defined in the Highway 407 Act, 1998; ("autoroute 407")
"Highway 407 East Completion" means the extension of Highway 407, as it may be built on the Highway 407 East Completion lands and includes improvements and fixtures; ("tronçon final est de l'autoroute 407")
"management" includes development, planning, design, construction, operation, maintenance and rehabilitation, and "manage" has a corresponding meaning; ("gestion", "gérer")
"Minister" means the Minister of Transportation or such other member of the Executive Council to whom the administration of this Act is assigned under the Executive Council Act; ("ministre")
"ministry" includes a ministry of the Government of Ontario and any board, commission, authority, corporation or other agency of the Government of Ontario; ("ministère")
"ministry safety standards" means safety standards, specifications, special provisions, directives, codes, policies, procedures, manuals, guidelines or processes of the Ministry of Transportation that apply to the management of highways designated as controlled-access highways under section 36 of the Public Transportation and Highway Improvement Act, as they may be amended or replaced from time to time; ("normes de sécurité ministérielles")
"owner" means the person from time to time who is a tenant under a ground lease of the Highway 407 East Completion lands; ("propriétaire")
"prescribed" means prescribed in the regulations made under this Act; ("prescrit")
"SuperBuild" means Ontario SuperBuild Corporation established under the Development Corporations Act; ("Société")
"SuperBuild subsidiary" means a subsidiary of SuperBuild, within the meaning of the Business Corporations Act; ("filiale de la Société")
"toll device" means a toll device prescribed under clause 191.4 (a) of the Highway Traffic Act; ("appareil à péage")
"transfer" includes convey, sell, grant, transfer, lease, license, charge, mortgage, encumber, grant an easement, assign and in any other way deal with or dispose of; ("transférer")
"vehicle permit" means a permit as defined in section 6 of the Highway Traffic Act. ("certificat d'immatriculation de véhicule")
Highway 407 East Completion lands
(2) The Lieutenant Governor in Council may make regulations defining the Highway 407 East Completion lands for the purposes of this Act, but the lands described must meet the following requirements:
1. The lands must not exceed a width sufficient to accommodate 10 highway lanes, a median and the additional lands required for infrastructure that is essential to the design, construction, use and safety of the highway.
2. The route shall be the route which may be approved under federal and provincial statutes between the easterly end of Highway 407 and Highway 35/115 and any approved highway connections with Highway 401.
Transfer and Agreements
Transfer of assets
2. (1) Despite any other Act or regulation, the Lieutenant Governor in Council may do any one or more of the following:
1. Direct the Minister to transfer, on behalf of the Crown in right of Ontario as represented by any minister of the Crown, SuperBuild, a SuperBuild subsidiary or any other ministry, directly or indirectly, all or any part of the Highway 407 East Completion lands, shares and other assets comprising or relating to the Highway 407 East Completion, whether tangible or intangible, or any interest in those lands, shares and other assets, on such terms and conditions as the Minister may determine.
2. Direct SuperBuild or a SuperBuild subsidiary to issue or transfer, directly or indirectly, any shares and other assets comprising or relating to the Highway 407 East Completion, whether tangible or intangible, or any interest in those shares and other assets, on such terms and conditions as SuperBuild or the SuperBuild subsidiary may determine.
3. Direct a SuperBuild subsidiary or any other ministry to,
i. enter into an agreement with the Minister under paragraph 1, or
ii. in the case of a SuperBuild subsidiary, enter into an agreement with SuperBuild under paragraph 2 or, in the case of any other ministry, enter into an agreement with SuperBuild or a SuperBuild subsidiary under paragraph 2.
Power to enter agreements
(2) The Minister, SuperBuild, a SuperBuild subsidiary or any other ministry may enter into any agreement considered necessary or expedient for carrying out the purposes of this Act.
Powers not limited
(3) Nothing in subsection (1) or (2) limits the powers that the Minister, SuperBuild, a SuperBuild subsidiary or any other ministry has under any other Act or regulation or at common law.
Necessary authority
3. (1) The Minister, SuperBuild, a SuperBuild subsidiary and any other ministry shall be deemed to have all necessary authorizations, consents and approvals from any minister of the Crown and from any ministry to carry out the powers described in this Act, including the power to enter into agreements.
Same
(2) For greater certainty and without limiting the generality of subsection (1), the Minister, SuperBuild, a SuperBuild subsidiary and any other ministry shall be deemed to have any approval which may be required under section 28 of the Financial Administration Act.
Same
(3) The execution of any document by the Minister, SuperBuild, a SuperBuild subsidiary or any other ministry shall be conclusive evidence that the necessary authorizations, consents and approvals referred to in subsections (1) and (2) have been obtained and that the minister of the Crown or ministry that granted or is deemed to have granted such authorization, consent or approval is bound by the document.
Owner's rights limited by agreements
4. (1) The rights and powers of the owner under this Act may only be exercised in accordance with the terms and conditions of an agreement between the owner and the Minister, SuperBuild or other ministry.
Penalties in agreement
(2) An agreement between the owner and the Minister, SuperBuild or other ministry may impose penalties for breach of the agreement or for breach of any Act or regulation and such penalties shall be enforceable.
Fee simple
5. Despite any other provision of this Act, the Minister may not convey title in fee simple to the Highway 407 East Completion lands under this Act, except to the Crown in right of Ontario as represented by a minister of the Crown or to a ministry.
Non-application of Expropriations Act
6. Sections 41 and 42 of the Expropriations Act do not apply to a transfer of assets under the authority of this Act.
Delegation
7. (1) Any power or duty conferred or imposed on the Minister under this Act may be delegated by the Minister to an employee or officer of a ministry and, when purporting to exercise a delegated power or duty, the employee or officer shall be presumed conclusively to act in accordance with the delegation.
Same - by owner
(2) The owner may delegate the powers given to the owner in this Act, and any person to whom a power is delegated shall be presumed conclusively to act in accordance with the delegation.
Conditions of delegation
(3) A delegation under this section shall be in writing and may be subject to such limitations, conditions and requirements as are set out in it.
Evidence
8. Any document under this Act purporting to be executed by the Minister or another minister of the Crown, or any certified copy of the document, is admissible in evidence in any action, prosecution or other proceeding as proof, in the absence of evidence to the contrary, that the document is executed by the Minister or other minister of the Crown without proof of the office or signature of the Minister or other minister.
Crown as owner
9. In the event that the ground lease of the Highway 407 East Completion lands is terminated, the Crown has all the powers, rights, duties and obligations given to the owner for the purposes of this Act, until a further transfer of the Highway 407 East Completion lands authorized under this Act.
Designation of the
Highway 407 East Completion
Private toll highway
10. (1) The Highway 407 East Completion is designated as a private toll highway that is a controlled-access highway.
Not King's Highway
(2) Despite any designation under section 36 of the Public Transportation and Highway Improvement Act, the Highway 407 East Completion is not part of the King's Highway.
Highway under Highway Traffic Act
(3) For the purposes of the Highway Traffic Act, the Highway 407 East Completion is a highway, and shall be deemed to have been designated as a Class A Highway in regulations made under that Act, and shall be treated as a controlled-access highway as described in the Schedules under that Act.
Public access
(4) Subject to subsection (3), the owner shall provide access to the Highway 407 East Completion to the public.
Order in council to be registered
(5) An order in council confirming the designation of the Highway 407 East Completion as a private toll highway may be registered in the proper land registry offices.
Designation not a regulation
(6) The order in council made under subsection (5) is not a regulation within the meaning of the Regulations Act.
Tolling and Enforcement
Person responsible for payment of toll
11. (1) A toll and any related fee and interest payable under this Act for the operation of a vehicle on the Highway 407 East Completion shall be paid to the owner by,
(a) if a toll device is not affixed to the vehicle, the person in whose name the plate portion of the vehicle permit is issued;
(b) if a toll device is affixed to the vehicle, the person to whom the toll device is registered.
Evidence
(2) Photographic or electronic evidence of the use of the Highway 407 East Completion is proof, in the absence of evidence to the contrary, of the obligation to pay a toll.
Application
(3) Sections 14 to 23 apply to the enforcement and collection of tolls and related fees and interest payable under this Act by a person described in subsection (1), but do not apply to the enforcement and collection of such tolls, fees and interest if,
(a) the person is responsible for the payment of such tolls, fees and interest under clause (1) (b); and
(b) the toll device that was affixed to the vehicle in question was obtained without providing information identifying the plate portion of a vehicle permit.
Powers of owner
12. (1) The owner may,
(a) establish, collect and enforce payment of tolls with respect to the operation of any vehicle or class of vehicles on the Highway 407 East Completion;
(b) establish, collect and enforce administration fees based on such criteria as the owner considers appropriate, and fees to commence or appeal any dispute proceedings;
(c) establish interest rates to be charged on unpaid tolls and fees, and collect interest charged at those rates;
(d) exempt any vehicle or class of vehicles from the application of section 11;
(e) establish terms and conditions for the registration and distribution of toll devices;
(f) require security for the provision of any toll devices; and
(g) determine the methods of payment of tolls, fees and interest.
Property in tolls
(2) Tolls, fees and interest collected by or on behalf of the owner are the property of the owner.
Validation of toll devices
(3) For the purposes of subsection 191.2 (2) of the Highway Traffic Act, a toll device is a validated toll device under this Act if a toll device agreement is in effect with the owner or other prescribed entity with respect to that toll device.
When payment due
13. (1) Subject to any agreement between the owner and a person responsible for the payment of a toll, a toll or fee is payable on the day an invoice for it is mailed, delivered by hand or sent by any other prescribed method to that person.
Interest
(2) Subject to any agreement between the owner and a person responsible for the payment of a toll, interest on a toll or fee begins to accrue and is payable 35 days after the invoice for the toll or fee is mailed, delivered by hand or sent by any other prescribed method to that person.
Cause of action
(3) A toll and any related fee or interest is a debt owing to the owner and the owner has a cause of action enforceable in any court of competent jurisdiction for the payment of that debt but the debt may not be enforced while the obligation to pay a toll or fee is being disputed under section 15 or is subject to an appeal under section 17.
Failure to pay toll
14. (1) If a toll charged for operating a vehicle on the Highway 407 East Completion or any administrative fee is not paid within 35 days after the day it is payable under subsection 13 (1), the owner may send the person responsible for the payment of the toll a notice of failure to pay the toll.
Content of notice
(2) The notice shall,
(a) set out the amount of the toll, of any administrative fee and the interest rate that is being charged;
(b) inform the person named in the notice that he or she may dispute the matter on a ground referred to in subsection 15 (1) and set out those grounds;
(c) inform the person named in the notice that if he or she disputes the matter,
(i) he or she must send a notice of dispute to the owner within the time period referred to in subsection 15 (2),
(ii) he or she bears the onus of proving the grounds on which the matter is disputed, and
(iii) the tolls, fees and interest set out in the notice shall be deemed to be paid in full if the owner fails to send the person its decision within 30 days of receiving the person's notice of dispute; and
(d) inform the person named in the notice that if the toll or fee referred to in the notice, or any interest on that toll or fee, is not paid within 90 days of the day on which the person received the notice, the Registrar of Motor Vehicles may refuse to validate the person's vehicle permit or refuse to issue a vehicle permit to the person and that the Registrar of Motor Vehicles may do so even if the failure to pay is disputed under section 15.
Dispute
15. (1) A person who receives notice under section 14 may dispute the alleged failure to pay a toll on any of the following grounds:
1. The toll was paid in full.
2. The amount of the toll is incorrect.
3. The vehicle, the numbered plate or the toll device registered to the person was lost or stolen at the time the toll was incurred.
4. The person is not the person responsible for the payment of the toll under subsection 11 (1).
5. Any other grounds agreed to by the owner and the Minister.
Notice of dispute
(2) A person who receives notice under section 14 may dispute the alleged failure to pay a toll if the person sends a notice of dispute, setting out the grounds on which the dispute is based, to the owner within 30 days of receiving the notice of failure to pay the toll under section 14.
Payment without prejudice
(3) The payment of a toll and related fees and interest shall not prejudice the right of a person who receives notice under section 14 to dispute the alleged failure to pay the toll, fees and interest.
Onus
(4) The onus of proving the grounds upon which a dispute under this section is based is on the person who sends notice of the dispute.
Decision
(5) Within 30 days of receiving a notice of dispute from a person under subsection (2), the owner shall render a decision and shall send the person a copy of the decision, with or without reasons.
Same
(6) If the dispute is unsuccessful, the owner shall, in writing together with the copy of the decision, inform the person who gave the notice of dispute of his or her right to appeal the decision to a dispute arbitrator and shall provide the address of the dispute arbitrator.
Failure to give timely decision
(7) If the owner fails to send a copy of the decision to the person who sent the notice of dispute within the time period required under subsection (5), the tolls and the related fees and interest that were the subject of the dispute shall be deemed to be paid in full.
Appointment of dispute arbitrator
16. (1) The Lieutenant Governor in Council may appoint a dispute arbitrator for the purposes of section 17.
Fees and expenses
(2) The fees and expenses of the dispute arbitrator shall be paid by the owner.
Appeal
17. (1) A person may appeal the owner's decision under section 15 on any of the grounds referred to in subsection 15 (1) if the person sends a notice of appeal, setting out the grounds of the appeal, to the dispute arbitrator and to the owner within 30 days of receiving a copy of the owner's decision under subsection 15 (5).
Submission by owner
(2) Within 15 days of receipt of a notice of appeal under subsection (1), the owner may send a written submission to the dispute arbitrator.
Copy to appellant
(3) Upon making a submission under subsection (2), the owner shall send a copy of the submission to the appellant.
Appeal process
(4) The dispute arbitrator shall review the notice of appeal and any submission made by the owner under subsection (2) and may,
(a) decide the matter on the basis of the written material;
(b) if he or she thinks it appropriate, hold a hearing into the matter; or
(c) use any available mediation or alternative dispute resolution method that he or she considers appropriate.
Appeal decision
(5) The dispute arbitrator shall decide the appeal solely on the grounds referred to in subsection 15 (1).
Order for expenses
(6) If the dispute arbitrator finds that the appellant is not responsible for payment of the toll, he or she may order the owner to pay the appellant the amount of his or her reasonable out of pocket expenses incurred in connection with the dispute or appeal of the dispute.
Decision final
(7) The decision of the dispute arbitrator is final and binding and is not subject to appeal.
Notice of decision
(8) The dispute arbitrator shall send the appellant, the owner and the Registrar of Motor Vehicles a copy of his or her decision within 120 days of receiving the notice of appeal under subsection (1).
Failure to give timely decision
(9) If the dispute arbitrator fails to send a copy of his or her decision within the time period set out in subsection (8), the appellant or the owner may apply to a court of competent jurisdiction for an order compelling the dispute arbitrator to give his or her decision.
Repayment of paid tolls
18. (1) Where a person who receives notice of failure to pay a toll under section 14 pays the toll and the related fees and interest, in whole or in part, the owner shall return the amount paid to the person, together with interest, if,
(a) the owner or the dispute arbitrator subsequently decides that the person is not responsible for the payment of the toll, fees and interest; or
(b) the tolls, fees and interest are deemed to be paid in full under subsection 15 (7).
Interest rate
(2) The interest on an amount returned under subsection (1) shall be charged at the same rate as the rate established by the owner under clause 12 (1) (c).
Interest on unpaid tolls
19. Interest on unpaid tolls and fees continues to accrue even if a person disputes or appeals the obligation to pay a toll.
Registrar notified of failure to pay toll
20. (1) If a toll, and the related fees and interest, are not paid within 90 days of the day a person receives a notice of failure to pay under section 14, the owner may notify the Registrar of Motor Vehicles of the failure to pay.
Method of giving notice
(2) Any notice to the Registrar of Motor Vehicles under this section may be given in writing, by direct electronic transmission or by any other prescribed method.
Notification
(3) The owner shall promptly inform the person who received notice of failure to pay under section 14 that notice has been given to the Registrar of Motor Vehicles under subsection (1).
Registrar's action
(4) If the Registrar of Motor Vehicles receives notice under subsection (1), he or she shall, at the next opportunity, refuse to validate the vehicle permit issued to the person who received the notice of failure to pay under section 14 and refuse to issue a vehicle permit to that person.
Same, if dispute
(5) The Registrar of Motor Vehicles may act under subsection (4) even though the person who received the notice of failure to pay under section 14 has disputed his or her obligation to pay under section 15 or has appealed a decision of the owner under section 17.
When toll is paid
(6) If notice has been given to the Registrar of Motor Vehicles under subsection (1) and the toll and related fees and interest are subsequently paid, the owner shall immediately notify the Registrar of the payment.
Same
(7) If the Registrar of Motor Vehicles is notified by the owner that the toll, fees and interest have been paid or is notified by the dispute arbitrator that the person is not responsible for paying the toll, fees and interest, the Registrar shall,
(a) validate any vehicle permit that he or she refused to validate under subsection (4);
(b) issue a vehicle permit to a person if it was refused under subsection (4).
Statutory Powers Procedure Act
21. The Statutory Powers Procedure Act does not apply to the owner's or a dispute arbitrator's powers of decision under section 15 or 17.
Documents
22. (1) Any document or notification required or permitted to be sent under section 14, 15, 17 or 20 shall be sent by registered mail or delivered by a bonded courier, or sent by any other prescribed method.
Deemed receipt
(2) A document referred to in subsection (1) shall be deemed to have been received,
(a) if sent by registered mail, on the fifth business day after the day it was mailed; or
(b) if sent by a prescribed method, on a prescribed day.
Business day
(3) For the purposes of clause (2) (a), a business day includes every day other than a Saturday, Sunday or a day that is a public holiday as defined in the Employment Standards Act, 2000.
Other remedies
23. Actions taken by the owner under sections 14 to 20 are in addition to any other methods of enforcement and collection available at law.
Assignment of agreements
24. The Minister may, to the extent that they are assignable, assign to the owner any rights the Minister has pursuant to any agreement with a government of another jurisdiction or with a person or agency in another jurisdiction relating to the collection or enforcement of tolls.
Management of Highway
Interpretation
25. For the purposes of sections 27 to 41,
"highway" has the same meaning as in the Public Transportation and Highway Improvement Act.
Owner to manage
26. The owner shall manage the Highway 407 East Completion in accordance with this Act.
Intersecting highways
27. (1) Where the Highway 407 East Completion intersects any highway that is not part of the King's Highway, the continuation of the Highway 407 East Completion to its full width across the highway so intersected shall be deemed to be the Highway 407 East Completion and to be under the jurisdiction and control of the owner.
Crossing highways
(2) Despite subsection (1), where a highway is carried over or under the Highway 407 East Completion by a bridge or other structure, the surface of the highway shall be deemed to be under the jurisdiction and control of the authority that has jurisdiction and control over the remainder of the highway.
Same
(3) Where a highway is carried over or under the Highway 407 East Completion by a bridge or other structure, responsibility for the management of the highway and the Highway 407 East Completion shall be governed by the same directives used by the Ministry of Transportation where the King's Highway intersects a highway that is not the King's Highway and,
(a) the owner shall abide by the directives as if it were the Ministry of Transportation; and
(b) the authority that has jurisdiction and control over the remainder of the highway shall abide by the directives as if the Highway 407 East Completion were a part of the King's Highway.
Intersecting King's Highways
28. (1) Where the Highway 407 East Completion intersects any part of the King's Highway, the continuation of the King's Highway to its full width across the Highway 407 East Completion shall be under the jurisdiction and control of the Minister.
Bridge
(2) Where a King's Highway is carried over or under the Highway 407 East Completion by a bridge or other structure, the bridge or other structure is part of the Highway 407 East Completion.
Directives
(3) The responsibility for the maintenance, repair and rehabilitation of the King's Highway and the Highway 407 East Completion shall be governed by the directives referred to in subsection 27 (3), and,
(a) the Highway 407 East Completion shall be treated as if it were a part of the King's Highway and the owner shall conduct itself as if it were the Ministry of Transportation; and
(b) the intersecting part of the King's Highway shall be treated as if it were a highway that is not the King's Highway and the Ministry of Transportation shall conduct itself as if it were an authority with jurisdiction and control over a highway that is not the King's Highway.
Relocation of road
29. (1) The owner may refer the matter to the Minister where the owner is unable to obtain the consent of the authority or person having jurisdiction and control over a road to relocate, alter or divert any public or private road that is not the King's Highway entering or touching upon or giving access to the Highway 407 East Completion.
Authorization
(2) Where the Minister is satisfied that the relocation, alteration or diversion proposed by the owner under subsection (1) is necessary for the management of the Highway 407 East Completion, the Minister may authorize the owner to undertake the proposed action.
Payment of costs
(3) The owner shall negotiate the payment of reasonable costs of the relocation, alteration or diversion of the road with the authority or person having control over the road, and if the parties cannot agree on the reasonable costs to be paid, the matter shall be referred to binding arbitration under the Arbitration Act, 1991, or such other method of arbitration as the parties may agree.
During repair road deemed to be highway
(4) During the period when the changes are being made, that portion of the road being relocated, altered or diverted shall be deemed to be part of the Highway 407 East Completion for purposes of section 42.
Notice of closing of highway
(5) A municipality shall not open, close or divert any highway or road allowance entering upon or intersecting the Highway 407 East Completion without giving written notice to the owner.
By-law
(6) A by-law passed for any purposes mentioned in subsection (5) does not take effect until the Minister endorses his or her consent on the by-law and the by-law is registered in the proper land registry office.
Exception
(7) Subsections (5) and (6) do not apply where the highway or road allowance is closed for a specified period of time not exceeding 72 hours and the municipality has provided an adequate detour.
Consent not regulation
(8) A consent under subsection (6) is not a regulation within the meaning of the Regulations Act.
Drainage
30. (1) The owner may initiate and carry out proceedings under any Act respecting drainage for the purpose of procuring proper drainage for the Highway 407 East Completion and the owner has the authority to file notices and declarations as owner with the clerk of the local municipalities, or receive notices where any other person is the initiating party, in accordance with the procedure prescribed in the Act, but no storm or land drainage works shall be constructed on the Highway 407 East Completion under any Act without the consent of the owner.
Drainage engineer
(2) The owner may from time to time designate one or more engineers to be the engineer or engineers authorized to carry out the provisions of any Act respecting drainage for the purpose of procuring proper drainage for the Highway 407 East Completion and every engineer so designated has for that purpose all the powers and shall perform all the duties on behalf of the owner required of an engineer appointed by a municipality.
Authorization required
(3) Despite subsections (1) and (2), the owner shall not exercise any of its powers or withhold its consent without the agreement of the affected party or the authorization of the Minister.
Highway closure
31. (1) The owner may close part of the Highway 407 East Completion to traffic in order to do work on the Highway 407 East Completion for such time as is necessary to do the work but in all cases the owner shall keep the Highway 407 East Completion open to traffic travelling in both directions at all times, except as provided in any other Act or regulation.
Approval of Minister
(2) If the owner plans to close a part of the Highway 407 East Completion for more than 72 hours, the owner shall give the Minister at least 30 days written notice and shall not commence the closure without the approval of the Minister.
No liability
(3) Every person using any part of the Highway 407 East Completion which is closed to traffic in accordance with this section does so at the person's own risk and the owner is not liable for any damage sustained by a person using any part of the Highway 407 East Completion which is closed to traffic.
Offence
(4) Every person who, without the consent of the owner or other lawful authority,
(a) uses any part of the Highway 407 East Completion which is closed to traffic under this section is guilty of an offence and on conviction is liable to a fine of not more than $200 or such greater amount as may be prescribed;
(b) defaces any barricade, light, detour sign or notice relating to a closure to traffic under this section that is placed on the Highway 407 East Completion by the owner or other lawful authority is guilty of an offence and on conviction is liable to a fine of not more than $200 or such greater amount as may be prescribed;
(c) removes any barricade, light, detour sign or notice relating to a closure to traffic under this section that is placed on the Highway 407 East Completion by the owner or other lawful authority is guilty of an offence and on conviction is liable to a fine of not less than $100 and not more than $500, or such greater amount as may be prescribed.
Power to enter on land, etc.
32. (1) Where the owner, for the management of the Highway 407 East Completion, needs to,
(a) enter upon and use any land;
(b) alter in any manner any natural or artificial feature of the land;
(c) construct and use roads on, to or from the land; or
(d) place upon or remove from the land any substance or structure,
and the owner is unable to obtain the consent of the landowner within a reasonable time and on reasonable terms, the owner may refer the matter to the Minister.
Authorization by Minister
(2) Where the Minister is satisfied that the actions proposed by the owner under subsection (1) are necessary for the management of the Highway 407 East Completion, the Minister may authorize the owner to do anything that the Minister would be permitted to do under section 6 of the Public Transportation and Highway Improvement Act.
Costs
(3) The owner shall compensate the landowner for any damage resulting from the actions of the owner under subsection (2).
Removal of obstructions
33. (1) With the consent of the landowner or, where no consent is given, with the authorization of the Minister, the owner may enter on land adjacent to the Highway 407 East Completion and cut down or remove any object or take any other reasonable action in order to remove obstructions or to prevent the drifting of snow where, in the opinion of the owner, to do so is necessary for the safety or convenience of the travelling public.
Snow fences
(2) With the consent of the landowner, or, where no consent is given, with the authorization of the Minister, the owner may enter upon any land adjacent to the Highway 407 East Completion and may erect and maintain snow fences on the land.
Compensation
(3) The owner shall compensate the landowner for any damage resulting from the exercise of its powers under this section.
Control of Highway 407 East Completion
lands
34. (1) The owner shall control the use of the Highway 407 East Completion lands in accordance with the policies of the Ministry of Transportation for controlled-access highways as established from time to time, subject to any agreement entered into by the owner and the Minister, SuperBuild or any other ministry.
Same
(2) Despite subsection (1), the Minister may use the Highway 407 East Completion lands to manage,
(a) transitways;
(b) areas used by the Ministry of Transportation to conduct vehicle and weight inspections; and
(c) any objects and structures for highway or transportation purposes.
Application of Public Transportation and Highway
Improvement Act
(3) The Minister shall control the use of the lands adjacent to the Highway 407 East Completion lands, and section 38 of the Public Transportation and Highway Improvement Act applies to the adjacent lands.
Interference with Highway 407 East Completion
(4) Despite any other Act or regulation, no person, municipality or local board shall, except in accordance with conditions set by the owner under subsection (1),
(a) obstruct or deposit material on, along, under or across the Highway 407 East Completion or take up or in any way interfere with the Highway 407 East Completion; or
(b) construct or change the use of any private road, entranceway, gate or other structure or facility as a means of access to the Highway 407 East Completion, other than a controlled-access highway.
Offence
(5) Every person who contravenes subsection (4) is guilty of an offence and on conviction is liable to a fine of not less than $200 and not more than $5,000, or such greater amount as may be prescribed.
Construction zone
35. The owner may designate any part of the Highway 407 East Completion as a construction zone and for the purposes of subsections 128 (8), (9) and (10) of the Highway Traffic Act and the regulations made under that Act concerning construction zones, the Highway 407 East Completion shall be deemed to be part of the King's Highway, and the owner to be an official of the Ministry of Transportation authorized by the Minister in writing.
Conformity with safety standards
36. (1) The owner shall carry out the management of the Highway 407 East Completion in compliance with the ministry safety standards used by the Ministry of Transportation for comparable controlled-access highways.
Equal application of standards
(2) The ministry safety standards shall be applied to the Highway 407 East Completion in the same manner as they are applied to any part of the King's Highway that is designated as a controlled-access highway and in no case shall the owner be required,
(a) to follow a standard that is more onerous than the safety standard that applies to other comparable controlled-access highways; or
(b) to apply a safety standard in a manner that is more onerous than the manner in which it is applied to other comparable highways that are designated as controlled-access highways.
Other standards
(3) Despite subsection (1), with the approval of the Minister, the owner may use safety standards other than ministry safety standards in carrying out its functions, activities and responsibilities with respect to the Highway 407 East Completion if, in the opinion of the Minister, the proposed standard provides equivalent safety protection to the ministry safety standard.
Inspection
37. (1) In this section,
"record" means any record of information, however recorded.
Authorization of officials
(2) The Minister may authorize such officials as he or she considers appropriate for the purposes of inspecting the Highway 407 East Completion and carrying out an audit to ensure compliance with ministry safety standards.
Powers
(3) For the purposes of carrying out his or her duties and powers under subsection (2), an official may,
(a) enter upon the Highway 407 East Completion and the area immediately around it at any time without a warrant;
(b) take up or use any machine, device, article, thing, material or biological, chemical or physical agent or part thereof;
(c) in any inspection, examination, inquiry or test, be accompanied and assisted by or take with him or her any person or persons having special, expert or professional knowledge of any matter, take photographs, and take with him or her and use any equipment or materials required for such purpose;
(d) conduct or take tests of any equipment, machine, device, article, thing, material or biological, chemical or physical agent, and for such purposes, take and carry away such samples as may be necessary;
(e) require in writing the owner to cause any tests described in clause (d) to be conducted or taken, at the expense of the owner, by a person possessing such special, expert or professional knowledge or qualifications as are specified by the official, and to provide a report or assessment by that person.
Same
(4) For the purposes of carrying out his or her duties and powers under subsection (2), an official may, without a warrant but with the consent and subject to the direction of the Minister,
(a) enter the offices of the owner, at any reasonable time;
(b) enter any place, other than a dwelling, at any reasonable time, if the official reasonably believes that it is likely to contain records relating to compliance by the owner with ministry safety standards;
(c) require the production of any record, and inspect, examine and copy the same; and
(d) upon giving a receipt, remove any record inspected or examined for the purpose of making copies or extracts, and upon making copies or extracts, shall promptly return the original record to the person who produced or furnished it.
Facilitation of inspection
(5) The owner shall facilitate an entry, inspection, examination, inquiry or test by an official acting under this section.
Where no facilitation
(6) Where the owner fails to facilitate an official's entry, inspection, examination, inquiry or test, the Minister may authorize whatever steps are necessary, other than the use of force, to ensure that the official is able to exercise his or her powers in a safe and prompt manner.
Contravention
(7) An official who finds a contravention of any ministry safety standards with respect to the Highway 407 East Completion shall notify the owner in writing of the contravention and the owner shall comply.
Confidentiality
(8) Every official acting under this section shall preserve confidentiality with respect to all matters that come to his or her knowledge in the course of so acting, and shall not communicate any such matters to any other person except as may be required in connection with the administration of this Act, with the consent of the owner or as otherwise required by law.
Ministry of Transportation undertakes work
38. (1) Where the owner has failed to comply with ministry safety standards or the Minister and the owner cannot reach an agreement regarding the interpretation or application of a ministry safety standard, the Ministry of Transportation may undertake any work required to ensure compliance with ministry safety standards.
Costs
(2) To the extent that any work done pursuant to subsection (1) is necessary to comply with ministry safety standards, the cost of the work, plus a reasonable administration fee, shall be paid by the owner.
Higher standard
39. (1) Despite section 36, if the Minister is of the opinion that the management of all or part of the Highway 407 East Completion should meet a higher standard than ministry safety standards, the Minister may enter into an agreement with the owner whereby the owner agrees to undertake the additional work necessary to meet the higher standard.
Where no agreement
(2) Failing an agreement under subsection (1), the Ministry of Transportation may undertake all or part of the work required to meet ministry safety standards and to meet the higher standard and, if it does so, the costs of undertaking the work shall be paid as follows:
1. To the extent that the work done is necessary to comply with ministry safety standards, the owner shall pay the costs of undertaking the work.
2. To the extent that the work done is necessary to comply with the higher standard, the Ministry of Transportation shall pay the costs of undertaking the work.
Same
(3) For the purposes of subsection (2), the costs that the Ministry of Transportation must pay shall include any loss of revenue that is directly related to the work required to meet the higher standard.
Vehicle safety
40. (1) For the purpose of enforcing vehicle licensing and safety standards under any Act, the Minister shall treat the Highway 407 East Completion as if it were part of the King's Highway.
Costs
(2) The Minister may charge the owner the reasonable costs of providing enforcement services under subsection (1) on a full cost recovery basis.
Immunity
41. (1) No action or other proceeding shall be instituted respecting any act done in good faith in the execution or intended execution of a person's duties under sections 37 to 40 or for any alleged neglect or default in the execution or performance in good faith of the person's duties or powers if the person is an employee of the Ministry of Transportation or if the person acts as an agent of or advisor to the Ministry of Transportation.
Crown liability
(2) Subsection (1) does not by reason of subsections 5 (2) and (4) of the Proceedings Against the Crown Act relieve the Crown of any liability in respect of a tort committed by an employee of the Ministry of Transportation or a person who acts as an agent of or advisor to the Ministry of Transportation, to which it would otherwise be subject, and the Crown is liable under that Act for such a tort as if subsection (1) had not been enacted.
Liability
Liability
42. (1) The owner shall maintain the Highway 407 East Completion and keep it in repair and any municipality in which any part of the Highway 407 East Completion is situate is relieved of any liability for maintaining and repairing the Highway 407 East Completion.
Exception
(2) Subsection (1) does not apply to any sidewalk or municipal undertaking or work constructed or in the course of construction by a municipality and the municipality is liable for want of repair for the sidewalk, municipal undertaking or work, whether the want of repair is the result of nonfeasance or misfeasance, in the same manner and to the same extent as in the case of any other like work constructed by the municipality.
Non-application of the Occupiers' Liability Act
(3) The Occupiers' Liability Act does not apply to the owner where it is the occupier, within the meaning of that Act, of the Highway 407 East Completion.
Liability for damage in case of default
(4) In the case of default by the owner to keep the Highway 407 East Completion in repair, the owner is liable for damage sustained by any person by reason of the default.
Insufficiency of walls, etc.
(5) No action shall be brought against the owner for the recovery of damages caused by the presence or absence or insufficiency of any wall, fence, guard rail, or barrier adjacent to or in, along or upon the Highway 407 East Completion or caused by or on account of any construction, obstruction or erection or any situation, arrangement or disposition of any earth, rock, tree or other material or thing adjacent to or in, along or upon that part of the Highway 407 East Completion that is not designed or intended for use by vehicular traffic.
Notice of claim
(6) No action shall be brought for the recovery of damages under subsection (4) unless notice in writing of the claim and of the injury complained of has been personally served upon or sent by registered letter to the owner within the time period that applies to the King's Highway for a notice of claim against the Crown in right of Ontario, but the failure to give or the insufficiency of the notice is not a bar to the action if the judge before whom the action is tried is of the opinion that there is reasonable excuse for the want or insufficiency of the notice and that the owner is not prejudiced in its defence.
Limitation of action
(7) No action shall be brought against the owner for the recovery of damages occasioned by the default mentioned in subsection (4), whether the want of repair was the result of nonfeasance or misfeasance, after the expiration of the time period that applies to the King's Highway for bringing an action against the Crown in right of Ontario.
Liability not to exceed that of a municipality
(8) The liability imposed by this section does not impose on the owner any liability greater than the liability of a municipality with respect to a highway under its jurisdiction and control.
No Crown duty
(9) Despite any other Act or regulation, the Crown in right of Ontario, the Minister, any other minister of the Crown, SuperBuild or any other ministry shall not have any duty to maintain or keep the Highway 407 East Completion in repair.
Action barred
(10) No action or proceeding of any kind shall be commenced against the Crown in right of Ontario, the Minister, any other minister of the Crown, SuperBuild or any other ministry, or any employee, officer, director or agent of the Crown in right of Ontario, the Minister, any other minister of the Crown, SuperBuild or any other ministry in respect of any loss or damage sustained by any person as a result of anything done or omitted to be done by any person, other than anything done or omitted to be done by the Crown in right of Ontario after the coming into force of this section, in connection with the management of the Highway 407 East Completion.
Expropriation and Expansion
Expropriation
43. (1) The Minister may, without the consent of the landowner, expropriate any land he or she considers necessary for the purpose of expanding, extending or completing the Highway 407 East Completion.
Expropriations Act
(2) For the purposes of the Expropriations Act, the Minister shall be deemed to be the approving authority with respect to any expropriation authorized by this section.
Public interest
(3) Any expropriation for the purposes of the Highway 407 East Completion shall be deemed to be in and for the public interest and benefit.
Expansion and extension
44. (1) The owner shall expand and extend the Highway 407 East Completion in accordance with the terms and conditions set out in an agreement to be entered into between the owner and the Minister.
Failure to comply
(2) Where the owner does not expand or extend the Highway 407 East Completion in accordance with the terms and conditions set out in the agreement, the Minister may carry out the expansion or extension, and the costs of the expansion or extension shall be determined and paid in accordance with the terms and conditions of the agreement.
Application of Other Laws
Approvals and agreements
45. (1) In this section,
"approval" includes any approval, certificate of approval, registration, licence, permit, exemption order, or declaratory order conferred under statute, by agreement or otherwise.
Agreement
(2) The Minister may confer upon the owner any agreements between the Minister or the Ministry of Transportation and any other ministries that are not specific to the Highway 407 East Completion, subject to such limitations as the Minister may impose.
Owner's rights
(3) The owner shall possess all the responsibilities, obligations, duties, powers, benefits and advantages under the agreements conferred pursuant to subsection (2).
Amendment or revocation
(4) Where this section confers an agreement on the owner, any amendments or revocations of the agreement shall also apply to the owner.
Owner to obtain approvals
(5) Unless otherwise provided under this Act or the regulations under this Act, the owner shall obtain any approvals required by any Act or regulation that are necessary for any purpose connected with the Highway 407 East Completion.
Environmental Assessment Act
46. (1) The Highway 407 East Completion shall be deemed to be an undertaking as defined in the Environmental Assessment Act and, for the purposes of management of that undertaking, the owner shall be deemed to be a public body to which the Environmental Assessment Act applies.
Same
(2) Despite subsection (1), the Ministry of Transportation may elect to be a proponent or co-proponent of any part of the undertaking.
Compliance with environmental standards
(3) The owner shall comply with any environmental assessment standards and any environmental management standards that are applicable to highways in Ontario.
Road authority
47. When acting for the Highway 407 East Completion purposes on the Highway 407 East Completion lands, the owner shall be deemed to be a road authority for the purposes of Regulation 339 of the Revised Regulations of Ontario, 1990, if the owner has entered into an agreement with the Minister of the Environment.
Aggregate Resources Act
48. The owner shall be deemed to be a public authority under the Aggregate Resources Act for the purpose of applying for a wayside permit under Part III of that Act, if the use of the pit or quarry is only for the Highway 407 East Completion purposes within the Highway 407 East Completion lands.
Building Code Act, 1992
49. (1) In this section,
"building", "building code", "construction" and "demolition" have the same meanings as in the Building Code Act, 1992.
Non-application
(2) The Building Code Act, 1992 does not apply to buildings located within the Highway 407 East Completion lands that are owned by the owner and used or to be used for the management of the Highway 407 East Completion.
Application
(3) Despite subsection (2), any person carrying out or causing to be carried out the following activities in respect of the buildings described in subsection (2) shall carry out those activities in compliance with the building code:
1. Any construction or demolition of buildings.
2. Any change in use of a building or part of a building that would result in an increase in hazard as determined under the building code, even if no construction is proposed.
Conservation Authorities Act
50. The Lieutenant Governor in Council may provide by regulation that a regulation made under section 28 of the Conservation Authorities Act does not apply to the owner with respect to management of the Highway 407 East Completion on the Highway 407 East Completion lands.
Emergency Plans Act
51. (1) For the purposes of the Emergency Plans Act, the Minister may include the Highway 407 East Completion in developing an emergency plan for highway and other transportation services and the Highway 407 East Completion may be incorporated into the plan and be used in the case of an emergency as if it were part of the King's Highway and not a private toll highway.
Same
(2) The Minister may require the owner to prepare and file with the Minister any emergency plans that the Minister considers necessary.
Implementation
(3) The Minister may direct the owner to implement an emergency plan under subsection (1) or (2) with any changes that the Minister considers necessary and the owner shall comply with such direction.
If no compliance
(4) If the owner does not comply with a direction under subsection (3), the Minister may carry out the direction.
Debt
(5) The reasonable costs of implementing a direction under subsection (4) may be recovered as a debt due to Her Majesty.
Freedom of information
52. (1) In this section,
"entity" means the government of a province of Canada or a state of the United States of America; ("entité")
"personal information" means information that is personal information for the purposes of the Freedom of Information and Protection of Privacy Act. ("renseignements personnels")
Collection of personal information by owner
(2) Despite any other Act or regulation, the owner may,
(a) collect, only for a purpose described in subsection (4), personal information in any manner from the Ministry of Transportation or any entity;
(b) use, only for a purpose described in subsection (4), personal information that was collected from the Ministry of Transportation or any entity;
(c) disclose, only for a purpose described in subsection (4), personal information that was collected from the Ministry of Transportation or any entity.
Collection of personal information by Ministry of Transportation
(3) Despite any other Act or regulation, the Ministry of Transportation may,
(a) collect personal information in any manner from the owner or any person or entity for a purpose described in subsection (4);
(b) use, for a purpose described in subsection (4), personal information that is in its custody or under its control;
(c) disclose the names and addresses of persons who owe tolls, fees and other charges that are in its custody or under its control or other prescribed personal information to the owner or any person or entity for a purpose described in subsection (4).
Purposes
(4) The following are the purposes referred to in subsections (2) and (3):
1. To assist the owner in the collection and enforcement of tolls, fees and other charges owing with respect to the Highway 407 East Completion.
2. To assist the owner in traffic planning and revenue management with respect to the Highway 407 East Completion.
3. To assist the owner in communicating with users of the Highway 407 East Completion for the purpose of promoting the use of the Highway 407 East Completion.
4. To assist an entity with whom the owner or the Ministry of Transportation has an agreement relating to the collection and enforcement of tolls.
Agreement required
(5) Despite any other Act or regulation, the Minister shall, as a condition for the disclosure of personal information pursuant to subsection (3), require the owner to enter into a written agreement that, in the opinion of the Minister, will protect the confidentiality of the personal information and prohibit the use of the personal information for any purpose not referred to in subsection (4).
Other requirements
(6) In addition to the condition required by subsection (5), the Minister may impose any other conditions that he or she considers appropriate.
Confidentiality protected
(7) The owner and any other person who collects personal information from the Ministry of Transportation shall ensure that all reasonable steps are taken to protect the confidentiality of that personal information, including protecting its confidentiality during its storage, transportation, handling and destruction.
Use of information
(8) For the purposes of the Freedom of Information and Protection of Privacy Act, personal information in the custody or under the control of the Ministry of Transportation may be used by the Ministry of Transportation for the purposes described in subsection (4) and that use shall be deemed to be for a purpose that is consistent with the purpose for which the personal information was obtained or compiled.
Purpose of disclosure
(9) For the purposes of the Freedom of Information and Protection of Privacy Act, personal information disclosed by the Ministry of Transportation for a purpose described in subsection (4) shall be deemed to have been disclosed for the purpose of complying with this section.
Notice not required
(10) Subsection 39 (2) of the Freedom of Information and Protection of Privacy Act does not apply with respect to the collection of personal information authorized by subsections (2) and (3).
Retention of information
(11) Personal information collected under clause (2) (a) and used by the owner shall be retained by it for at least 65 days unless the individual to whom the information related consents in writing to its earlier disposal.
Offence
(12) A person who knowingly uses or discloses, for a purpose other than a purpose described in subsection (4), personal information that was disclosed to the person by the Ministry of Transportation under this section is guilty of an offence and on conviction is liable to a fine of not more than $5,000 or such greater amount as may be prescribed.
Highway Traffic Act - tow truck services
53. For the purposes of section 171 of the Highway Traffic Act, the Highway 407 East Completion shall be deemed to be part of the King's Highway.
Highway Traffic Act - application of miscellaneous regulations
54. (1) For the purposes of regulations made by the Minister under subsections 123 (1), 128 (7) and 151 (2) of the Highway Traffic Act, the Highway 407 East Completion shall be deemed to be part of the King's Highway.
Other regulations
(2) In addition to those regulations referred to in subsection (1), the Lieutenant Governor in Council may make regulations designating regulations under the Highway Traffic Act that apply, with necessary modifications, to the Highway 407 East Completion and providing that, for the purposes of those regulations, the Highway 407 East Completion shall be deemed to be part of the King's Highway.
Motorized Snow Vehicles Act
55. For the purposes of section 5 of the Motorized Snow Vehicles Act and any regulations made under that section, the Highway 407 East Completion shall be deemed to be part of the King's Highway, and to have been designated as a controlled-access highway under section 36 of the Public Transportation and Highway Improvement Act.
Off-Road Vehicles Act
56. (1) For the purposes of the Off-Road Vehicles Act, the Highway 407 East Completion is a highway, and shall be deemed to be part of the King's Highway for purposes of regulations made under that Act.
Transition
(2) Regulation 863 of the Revised Regulations of Ontario, 1990 continues to apply to the Highway 407 East Completion, unless repealed, or amended to provide otherwise.
Police Services Act
57. (1) For the purposes of paragraph 3 of subsection 19 (1) of the Police Services Act, the Highway 407 East Completion shall be deemed to be part of the King's Highway.
Cost of policing
(2) The Ontario Provincial Police may, with the approval of the Solicitor General, charge the owner the reasonable costs of providing services under paragraph 3 of subsection 19 (1) of the Police Services Act on a full cost recovery basis.
Agreement
(3) The Solicitor General may enter into an agreement with the owner for the provision of services under paragraph 3 of subsection 19 (1) of the Police Services Act on the Highway 407 East Completion.
Payable into Consolidated Revenue Fund
(4) All money received by the Ontario Provincial Police by way of charges imposed under subsection (2) or by the Solicitor General under an agreement entered into under subsection (3) shall be paid into the Consolidated Revenue Fund.
Debt
(5) All amounts owing as charges under subsection (2) or pursuant to an agreement under subsection (3), if not collected by other means, may be recovered by a court action, with costs, as a debt due to Her Majesty.
Public Utilities Act
58. For the purposes of sections 4 and 22 of the Public Utilities Act, the Highway 407 East Completion shall be deemed to be a highway.
Public Service Works on Highways Act
59. (1) For the purposes of the Public Service Works on Highways Act, the Highway 407 East Completion shall be deemed to be a highway.
Same
(2) For the purposes of the Public Service Works on Highways Act, the owner is the road authority for the Highway 407 East Completion.
Municipal by-laws
60. (1) In this section,
"municipal by-laws" include the by-laws of a regional municipality; ("règlements municipaux")
"municipality" includes a regional municipality. ("municipalité")
Owner in place of Crown
(2) The owner stands in the place of the Crown for the purpose of the application of municipal by-laws and approvals required under municipal by-laws,
(a) affecting the Highway 407 East Completion lands and affecting activities on the Highway 407 East Completion lands related to the management and use of the Highway 407 East Completion; and
(b) respecting prescribed matters.
Regulations
(3) The Lieutenant Governor in Council may make regulations prescribing matters for the purposes of clause (2) (b).
Ontario Planning and Development
Act, 1994
61. (1) For the purposes of section 13 of the Ontario Planning and Development Act, 1994, the owner shall be deemed to be a ministry of the Crown.
Orders not to affect
(2) No order made by the Minister of Municipal Affairs and Housing under section 17 of the Ontario Planning and Development Act, 1994 before the coming into force of this section shall have the effect of prohibiting or regulating the management and use of the Highway 407 East Completion on the Highway 407 East Completion lands.
Planning Act orders
62. No order made by the Minister of Municipal Affairs and Housing under clause 47 (1) (a) of the Planning Act before the coming into force of this section shall have the effect of prohibiting or regulating the management and use of the Highway 407 East Completion on the Highway 407 East Completion lands.
Regulations
Regulations
63. (1) The Lieutenant Governor in Council may make regulations,
(a) defining any word or expression used in this Act but not defined in this Act;
(b) respecting additional procedures to be used by the owner for enforcing payment of tolls on the Highway 407 East Completion;
(c) prescribing the types of toll devices and related tolling equipment that must be used by the owner and, despite any other Act, the owners or operators of any other private toll highways;
(d) providing that the Arbitration Act, 1991 or any provision of that Act does not apply to appeals under section 17;
(e) prescribing greater penalties for the purposes of sections 31 and 34;
(f) despite this or any other Act, requiring the owner and the owners or operators of any other private toll highways to do the things specified in the regulation in order to achieve the integration of the Highway 407 East Completion with the other highways specified in the regulation;
(g) prescribing any other matter that is referred to in this Act as being prescribed;
(h) respecting any matter that the Lieutenant Governor in Council considers necessary or advisable to carry out effectively the purposes of this Act.
Same
(2) The Minister may make regulations prescribing forms and their contents for the purposes of sections 14, 15, 17 and 20.
General or particular
(3) Regulations made under subsection (1) may be general or particular in their application.
Consequential Amendment
Highway 407 Act, 1998
64. Subsection 1 (2) of the Highway 407 Act, 1998 is repealed and the following substituted:
Highway 407 lands
(2) The Lieutenant Governor in Council may make regulations defining the Highway 407 lands for the purposes of this Act, but the lands described must not exceed a width sufficient to accommodate 10 highway lanes, a median and the additional lands required for infrastructure that is essential to the design, construction, use and safety of the highway constructed along the route that was, on October 19, 1998, exempt or approved under the Environmental Assessment Act between,
(a) the intersection of Highway 407 and the Queen Elizabeth Way in the City of Burlington; and
(b) Highway 7 east of Brock Road in the Town of Pickering.
Commencement and Short title
Commencement
65. The Act set out in this Schedule comes into force on a day to be named by proclamation of the Lieutenant Governor.
Short title
66. The short title of the Act set out in this Schedule is the Highway 407 East Completion Act, 2001.