Bill 18, Budget Measures Act, 2005 (No. 2)

Duncan, Hon. Dwight Minister of Finance

Versions

Bill 18 2005

An Act to implement
2005 Budget measures
and amend various Acts

Note: This Act amends more than one Act. For the legislative history of these Acts, see Public Statutes - Detailed Legislative History on www.e-laws.gov.on.ca.

Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:

Contents of this Act

1. This Act consists of this section, sections 2 and 3 and the Schedules to this Act.

Commencement

2. (1) Subject to subsections (2) and (3), this Act comes into force on the day it receives Royal Assent.

Same

(2) The Schedules to this Act come into force as provided in each Schedule.

Same

(3) If a Schedule to this Act provides that any provisions are to come into force on a day to be named by proclamation of 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

3. The short title of this Act is the Budget Measures Act, 2005 (No. 2).

SCHEDULE 1
AMBULANCE ACT

1. Section 4 of the Ambulance Act is amended by adding the following subsections:

Same, certain corporations

(2.1) The Minister may designate one or more corporations without share capital as having the powers and responsibilities of a base hospital under this Act and, where the Minister has done so,

(a) any provision of this Act or the regulations that applies to a base hospital shall also be deemed to apply to the corporation unless this Act or the regulations specifically provide otherwise; and

(b) the corporation continues to have any other powers, responsibilities and capacities that a corporation can have under this Act or the regulations.

Non-application of Regulations Act

(2.2) The Regulations Act does not apply to the designation of a hospital under clause (2) (d) or of a corporation without share capital under subsection (2.1).

Bill 14

2. (1) This section applies only if Bill 14 ( Access to Justice Act, 2005 , introduced on October 27, 2005) receives Royal Assent.

Same

(2) On the later of the day Bill 14 receives Royal Assent and the day this section comes into force, subsection 4 (2.2) of the Act is amended by striking out "The Regulations Act" at the beginning and substituting "Part III of the Legislation Act, 2005".

Same

(3) The reference in subsection (2) to "Part III" is a reference to that Part as it was numbered in the first reading version of the Bill.

3. Clause 22 (1) (e.6) of the Act is repealed and the following substituted:

(e.6) respecting the functions and duties of base hospitals, of corporations designated under subsection 4 (2.1), and of communication services;

Commencement

4. This Schedule comes into force on the day the Budget Measures Act, 2005 (No. 2) receives Royal Assent.

SCHEDULE 2
AUTOMOBILE INSURANCE RATE
STABILIZATION ACT, 2003

1. The definition of "automobile insurance" in section 1 of the Automobile Insurance Rate Stabilization Act, 2003 is amended by striking out "section 1 of".

Commencement

2. This Schedule comes into force on the day the Budget Measures Act, 2005 (No. 2) receives Royal Assent.

SCHEDULE 3
COMMUNITY SMALL BUSINESS
INVESTMENT FUNDS ACT

1. Section 4 of the Community Small Business Investment Funds Act is amended by adding the following subsection:

Last day to notify the Minister

(2.1) The last day on which notification may be made under subsection (2) is August 29, 2005.

2. Section 5 of the Act is amended by adding the following subsection:

Last day to make an application for registration

(1.1) The last day on which a corporation may apply for registration as an employee ownership labour sponsored venture capital corporation under this Part is August 29, 2005.

3. (1) Subsection 16.1 (1) of the Act is amended by striking out "a calendar year after 2000" and substituting "an eligible year".

(2) Subsection 16.1 (2) of the Act is amended by striking out "a calendar year" in the portion before clause (a) and substituting "an eligible year".

(3) Subsection 16.1 (3) of the Act is amended by striking out "a calendar year" and substituting "an eligible year".

(4) Subsection 16.1 (5) of the Act is amended by striking out "the calendar year" and substituting "the eligible year".

(5) Section 16.1 of the Act is amended by adding the following subsection:

Definition

(7) In this section,

"eligible year" means a calendar year after 2000 and before 2011.

4. (1) Subsection 25 (3) of the Act is repealed and the following substituted:

Issuance of tax credit certificates

(3) Subject to subsection (11), a labour sponsored investment fund corporation shall issue a tax credit certificate on behalf of the Minister to each eligible investor who has subscribed for a Class A share of the corporation during a calendar year ending before 2011 or within 60 days after the end of that calendar year in respect of an investment corporation tax credit to be claimed by the eligible investor in respect of that share under the Income Tax Act.

(2) Paragraph 7 of subsection 25 (4) of the Act is amended by striking out "for any taxation year after 2000" in the portion before subparagraph i and substituting "for any taxation year that is after 2000 but ends before 2009".

(3) Subsection 25 (4) of the Act is amended by adding the following paragraphs:

7.1 If the corporation is a research oriented investment fund during the calendar year in which it issues the Class A shares referred to in subsection (3), the amount of the tax credit deductible in determining the amount of tax payable under the Income Tax Act for the 2009 taxation year is the lesser of,

i. $750, and

ii. an amount equal to 15 per cent of the equity capital received by the corporation from the eligible investor, or from a qualifying trust for the eligible investor, for Class A shares issued by the corporation that are purchased after the end of the preceding taxation year and before the day that is 61 days after the end of the taxation year, excluding any portion of the equity capital that was taken into consideration in determining the amount of a tax credit for the preceding year.

7.2 If the corporation is a research oriented investment fund during the calendar year in which it issues the Class A shares referred to in subsection (3), the amount of the tax credit deductible in determining the amount of tax payable under the Income Tax Act for the 2010 taxation year is the lesser of,

i. $500, and

ii. an amount equal to 10 per cent of the equity capital received by the corporation from the eligible investor, or from a qualifying trust for the eligible investor, for Class A shares issued by the corporation that are purchased after the end of the preceding taxation year and before the day that is 61 days after the end of the taxation year, excluding any portion of the equity capital that was taken into consideration in determining the amount of a tax credit for the preceding year.

(4) Paragraph 8 of subsection 25 (4) of the Act is amended by striking out "for any taxation year after 2000" in the portion before subparagraph i and substituting "for any taxation year that is after 2000 but ends before 2009".

(5) Subsection 25 (4) of the Act is amended by adding the following paragraphs:

8.1 If the corporation is not a research oriented investment fund during the calendar year in which it issues the Class A shares referred to in subsection (3), the amount of the tax credit deductible in determining the amount of tax payable under the Income Tax Act for the 2009 taxation year is the lesser of,

i. $500, and

8.2 If the corporation is not a research oriented investment fund during the calendar year in which it issues the Class A shares referred to in subsection (3), the amount of the tax credit deductible in determining the amount of tax payable under the Income Tax Act for the 2010 taxation year is the lesser of,

i. $250, and

ii. an amount equal to 5 per cent of the equity capital received by the corporation from the eligible investor, or from a qualifying trust for the eligible investor, for Class A shares issued by the corporation that are purchased after the end of the preceding taxation year and before the day that is 61 days after the end of the taxation year, excluding any portion of the equity capital that was taken into consideration in determining the amount of a tax credit for the preceding year.

5. Section 27.1 of the Act is amended by adding the following subsection:

Regulations

(10) The Minister may make regulations prescribing rules that apply if a labour sponsored investment fund corporation winds up.

6. (1) Subsection 45 (1) of the Act is amended by adding the following clauses:

(k.1) prescribing circumstances in which the period of eight years set out in subsection 14.1 (1) does not apply, providing that a period less than eight years applies and prescribing rules for determining when a period of less than eight years applies and the length of the period of time that applies for the purposes of section 14.1 in respect of a labour sponsored investment fund corporation or a class of labour sponsored investment fund corporations;

(k.2) prescribing circumstances in which a new investment by a labour sponsored investment fund in a taxable Canadian corporation or Canadian partnership that was previously an eligible business for the purposes of Part III but is no longer an eligible business will be an eligible investment for the purposes of that Part;

(k.3) prescribing circumstances in which the period of 12 months set out in subsection 21 (2) does not apply, providing that a period of more than 12 months applies and prescribing rules for determining when a period of more than 12 months applies and the length of the period that applies in respect of a labour sponsored investment fund corporation or a class of labour sponsored investment fund corporations;

(2) Section 45 of the Act is amended by adding the following subsection:

General or particular

(5) A regulation made under this Act may be general or particular.

Commencement

7. (1) Subject to subsection (2), this Schedule comes into force on the day the Budget Measures Act, 2005 (No. 2) receives Royal Assent.

Same

(2) Sections 1 and 2 shall be deemed to have come into force on August 29, 2005.

SCHEDULE 4
COMPULSORY AUTOMOBILE INSURANCE ACT

1. The definition of "lessee" in subsection 1 (1) of the Compulsory Automobile Insurance Act is repealed and the following substituted:

"lessee" means, in respect of a motor vehicle, a person who is leasing or renting the motor vehicle for a period of 30 days or more; ("locataire")

Commencement

2. (1) Subject to subsection (2), this Schedule comes into force on the day the Budget Measures Act, 2005 (No. 2) receives Royal Assent.

Same

(2) Section 1 comes into force on a day to be named by proclamation of the Lieutenant Governor.

SCHEDULE 5
CORPORATIONS TAX ACT

1. Subsection 1 (2) of the Corporations Tax Act is amended by adding the following definition:

"federal assessment action" means any of the following actions taken by the Minister of National Revenue under the Income Tax Act (Canada),

(a) an assessment, reassessment or additional assessment of tax, interest or penalties,

(b) a determination or redetermination of a loss or an amount or a written notice of a change in a loss or an amount,

(d) a confirmation of an assessment, reassessment or additional assessment of tax, interest or penalties or of a determination or redetermination of a loss or an amount; ("mesure fiscale fédérale")

2. (1) The definition of "tax benefit" in subsection 5 (1) of the Act is repealed and the following substituted:

"tax benefit" means a reduction, avoidance or deferral of tax or other amount payable by a corporation under this Act or under the Income Tax Act (Canada) or an increase in a refund of tax or other amount under this Act or under the Income Tax Act (Canada) and includes,

(a) a reduction, avoidance or deferral of tax or other amount that would be payable under the Act or the Income Tax Act (Canada) but for a Tax Treaty, Agreement or Convention between Canada and another country, and

(b) an increase in a refund of tax or other amount under the Act or the Income Tax Act (Canada) as a result of a Tax Treaty, Agreement or Convention between Canada and another country; ("avantage fiscal")

(2) Section 5 of the Act is amended by adding the following subsection:

Application

(1.1) This section applies to,

(a) transactions entered into after September 12, 1988 in respect of which the tax consequences to a person have been determined through a notice of assessment, reassessment, additional assessment or determination under subsection 152 (1.11) of the Income Tax Act (Canada) that involves the application of section 245 of that Act; and

(b) transactions entered into on or after December 20, 1990.

(3) Subsection 5 (3) of the Act is repealed and the following substituted:

Application of subs. (2)

(3) Subsection (2) applies to a transaction if it is reasonable to consider that,

(a) the transaction would, if this Act were read without reference to this section, result directly or indirectly in a misuse of the provisions of one or more of,

(i) this Act,

(ii) the regulations made under this Act,

(iii) a Tax Treaty, Agreement or Convention between Canada and another country, or

(iv) any Act or regulation of any jurisdiction that is relevant in computing tax or any amount payable by or refundable to a corporation under this Act or in determining any amount relevant for the purposes of that computation; or

(b) the transaction would result directly or indirectly in an abuse having regard to the provisions described in clause (a), other than this section, read as a whole.

(4) Subsection 5 (4) of the Act is amended by striking out the portion before clause (a) and clauses (a) and (b) and substituting the following:

Nature of determination

(4) Without restricting the generality of subsection (2) and despite any other Act or regulation of any jurisdiction, in any determination under subsection (2) of the tax consequences to a corporation of a transaction,

(a) any deduction, exemption or exclusion in computing an amount referred to in clause (a), (b), (c) or (d) of the definition of "tax consequences" in subsection (1) may be allowed or disallowed in whole or in part;

(b) any deduction, exemption or exclusion referred to in clause (a) and any income, loss or other amount used in the determination of any amount payable or refundable under this Act may be allocated to any person;

. . . . .

(5) Clause 5 (4) (a) of the Act, as re-enacted by subsection (4), is amended by striking out "clause (a), (b), (c) or (d)" and substituting "clause (a), (b), (c), (c.1) or (d)".

(6) Clause 5 (4) (a) of the Act, as re-enacted by subsection (4) and amended by subsection (5), is amended by striking out "clause (a), (b), (c), (c.1) or (d)" and substituting "clause (a), (a.1), (b), (c), (c.1) or (d)".

(7) Section 5 of the Act is amended by adding the following subsection:

Application of subs. (4)

(4.1) Subsection (4) applies to any benefit provided under a Tax Treaty, Agreement or Convention between Canada and another country that applies for the purposes of this Act despite the following:

1. A provision of the Tax Treaty, Agreement or Convention.

2. A provision of any Act of Canada that gives the force of law to the Tax Treaty, Agreement or Convention and relates to the application of the Tax Treaty, Agreement or Convention.

3. Paragraph 2 of section 5.4 of the Act is repealed and the following substituted:

2. The reference to subsection 245 (1) of 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 subsection 5 (1) of this Act.

4. The definition of "B" in subsection 34 (1.1) of the Act is repealed and the following substituted:

"B" is the lesser of the amount of the corporation's income for the taxation year and the total of,

(a) the amount of gifts made before March 23, 2004 to Her Majesty in right of Ontario, a Crown agency within the meaning of the Crown Agency Act or a foundation established under the Crown Foundations Act, 1996 to the extent that,

(i) the gifts were made in the taxation year or in the five preceding taxation years, and

(ii) the amount of the gifts is not otherwise deducted in computing the corporation's income or taxable income for the year and was not deducted for a previous taxation year, and

(b) the total of all amounts each of which is the fair market value of a gift made after March 22, 2004 to Her Majesty in right of Ontario, a Crown agency within the meaning of the Crown Agency Act or a foundation established under the Crown Foundations Act, 1996 if,

(i) the gift was made in the taxation year or in the five preceding taxation years,

(ii) the gift is not a gift to which subsection 110.1 (1.2) of the Income Tax Act (Canada) would apply for the taxation year if that subsection applied to amounts deductible under this subsection, and

(iii) the fair market value of the gift is not otherwise deducted in computing the corporation's income or taxable income under the Act for the taxation year and was not deducted for a previous taxation year.

5. Subclause 37 (5) (a) (iii) of the Act is amended by striking out "or" at the end and substituting "and".

6. (1) The definition of "eligible educational institution" in subsection 43.4 (10) of the Act is repealed and the following substituted:

"eligible educational institution" means an educational institution that satisfies the conditions prescribed by the Minister; ("établissement d'enseignement autorisé")

(2) The definition of "eligible expenditure" in subsection 43.4 (10) of the Act is repealed and the following substituted:

"eligible expenditure" means an amount determined in the manner prescribed by the Minister in respect of an expenditure that satisfies the conditions prescribed by the Minister; ("dépense autorisée")

(3) The definition of "qualifying work placement" in subsection 43.4 (10) of the Act is repealed and the following substituted:

"qualifying work placement" has the meaning prescribed by the Minister. ("stage admissible")

(4) Clauses 43.4 (11) (b) and (c) of the Act are repealed and the following substituted:

(b) prescribing the meaning of "qualified educational program" for the purposes of subsection (4);

(d) prescribing the manner for determining an amount and prescribing conditions for the purposes of the definition of "eligible expenditure" in subsection (10);

(e) prescribing the meaning of a "qualifying work placement" for the purposes of this section;

(f) prescribing methods of claiming and obtaining the benefit of a co-operative education tax credit, other than as otherwise set out in this section, and the procedures to be followed.

7. (1) Subsection 43.7 (8) of the Act is amended by striking out "a person designated by the Minister of Citizenship, Culture and Recreation" and substituting "the Ontario Media Development Corporation or a person designated by the Minister of Culture".

(2) Clause (a) of the definition of "eligible Canadian author" in subsection 43.7 (16) of the Act is repealed and the following substituted:

(a) who, when the contract is entered into to publish the literary work, is ordinarily resident in Canada and is a Canadian citizen or a permanent resident within the meaning of the Immigration Act (Canada), and

(3) The definition of "eligible category of writing" in subsection 43.7 (16) of the Act is repealed.

(4) Section 43.7 of the Act is amended by adding the following subsections:

Eligible category of writing

(16.1) For the purposes of this section, the eligible categories of writing are as follows:

1. If the literary work is published on or before May 11, 2005, each of the following is an eligible category of writing:

i. Fiction.

ii. Nonfiction.

iii. Poetry.

iv. Biography.

v. Children's books.

2. If the literary work is published after May 11, 2005, each of the following is an eligible category of writing:

i. Fiction.

ii. Nonfiction.

iii. Poetry.

iv. Biography.

v. Children's fiction.

vi. Children's nonfiction.

vii. Children's poetry.

viii. Children's biography.

Transitional, eligible Canadian author

(16.2) In determining if an individual is an eligible Canadian author of a literary work published after May 11, 2005 that is children's fiction, children's non-fiction, children's poetry or children's biography and whether the individual has more than two literary works of the same eligible category of writing that have been previously published, any children's books of which the individual is the author that were published before May 12, 2005 shall be classified according to the eligible categories of writing that would apply if the books had been published after May 11, 2005.

8. (1) Subsection 43.11 (6) of the Act is amended by striking out "the Ontario Film Development Corporation, or to another person designated by the Minister of Citizenship, Culture and Recreation" and substituting "the Ontario Media Development Corporation or a person designated by the Minister of Culture".

(2) Subsection 43.11 (7) of the Act is amended by striking out "the Ontario Film Development Corporation or the person designated by the Minister of Citizenship, Culture and Recreation" and substituting "the Ontario Media Development Corporation or a person designated by the Minister of Culture".

(3) Subsection 43.11 (8) of the Act is amended by striking out "the Ontario Film Development Corporation or the person designated by the Minister of Citizenship, Culture and Recreation" and substituting "the Ontario Media Development Corporation or a person designated by the Minister of Culture".

(4) The definition of "eligible product" in subsection 43.11 (15) of the Act is amended by striking out "the Ontario Film Development Corporation" and substituting "the Ontario Media Development Corporation".

9. Subsection 43.12 (6) of the Act is amended by striking out "a person designated by the Minister of Citizenship, Culture and Recreation" and substituting "the Ontario Media Development Corporation or a person designated by the Minister of Culture".

10. (1) The definition of "C" in the definition of "A" in subsection 43.13 (3) of the Act is repealed and the following substituted:

"C" is the total number of days in the taxation year that the apprentice was employed by the corporation as an apprentice in a qualifying apprenticeship and that were,

(a) after May 18, 2004 and before January 1, 2011, and

(b) during the first 36 months the apprentice was in the apprenticeship program, and

(2) Subsection 43.13 (9) of the Act is repealed and the following substituted:

Eligible expenditure

(9) Subject to subsections (12) and (13), each of the following amounts paid by a corporation in respect of a qualifying apprenticeship is an eligible expenditure for the taxation year:

1. An amount paid to an apprentice in a qualifying apprenticeship if,

i. the amount is required, for the purposes of Part III of Regulation 183 of the Revised Regulations of Ontario, 1990 (General) to be included in the amount of salary or wages paid to employees of a permanent establishment of the corporation in Ontario,

ii. the amount is required by subdivision a of Division B of Part I of the Income Tax Act (Canada) to be included in the apprentice's income from a source that is an office or employment,

iii. the amount is in respect of a qualifying apprenticeship and is paid or payable for services performed by the apprentice for the corporation after May 18, 2004 and before January 1, 2011, and

iv. the amount relates to services provided by the apprentice to the corporation during the first 36 months of the apprenticeship program and does not relate to services performed before the commencement or after the end of the apprenticeship program.

2. A fee paid to an employment agency in consideration for the provision of services performed by the apprentice in the qualifying apprenticeship if,

i. the services are performed by the apprentice primarily at a permanent establishment of the corporation in Ontario,

ii. the fee is paid or payable for services performed by the apprentice for the corporation after May 18, 2004 and before January 1, 2011, and

iii. the fee relates to services performed by the apprentice for the corporation during the first 36 months of the apprenticeship program and does not relate to services performed before the commencement or after the end of the apprenticeship program.

(3) Section 43.13 of the Act is amended by adding the following subsection:

Employment agencies

(13.1) If a corporation pays a fee to an employment agency in respect of a qualifying apprenticeship that is an eligible expenditure of the corporation for a taxation year,

(a) the corporation is deemed to employ the apprentice for the purposes of the definition of "C" in the definition of "A" in subsection (3) and for the purposes of paragraph 1 of subsection (7), and the employment agency is deemed not to employ the apprentice;

(b) the corporation is deemed to be participating in the apprenticeship program for the purposes of paragraph 3 of subsection (7), and the employment agency is deemed not to be participating in the apprenticeship program; and

(c) the apprentice is deemed to serve the apprenticeship with the corporation for the purposes of clause (12) (a), and not with the employment agency.

(4) Section 43.13 of the Act is amended by adding the following subsection:

Limitation

(13.2) If an amount paid by a corporation is an eligible expenditure under this section and is also an eligible expenditure under section 43.4, the corporation may include the amount in computing a tax credit under this section or in computing a tax credit under section 43.4 and not in computing both tax credits.

11. The Act is amended by adding the following section:

tax shelters

General rule, tax shelters and tax shelter investments

56.1 (1) Subject to subsections (2) and (3), the following provisions apply for the purposes of this Act in so far as they apply to corporations:

1. Section 143.2 of the Income Tax Act (Canada), except subsection 143.2 (15) of that Act.

2. Subsection 237.1 (1) of the Income Tax Act (Canada).

Information located outside Canada

(2) If the Minister of National Revenue has initiated a federal assessment action for a taxation year of a corporation and applies subsection 143.2 (13) of the Income Tax Act (Canada), the amount deemed to be a limited-recourse amount in relation to an expenditure under subsection 143.2 (13) of that Act is deemed to be the limited-recourse amount relating to the expenditure under this Act.

Information located outside Canada

(3) If the Minister of National Revenue has initiated a federal assessment action for a taxation year of a corporation and applies subsection 143.2 (14) of the Income Tax Act (Canada), the corporation and such other taxpayers as the Minister of National Revenue determines are not dealing at arm's length for the purposes of section 143.2 of that Act are deemed not to be dealing with each other at arm's length for the purposes of this section.

Deductions and claims disallowed

(4) No amount may be deducted or claimed by a corporation for the purposes of this Act in respect of a tax shelter unless the corporation has filed with the Minister of National Revenue the form and information required under section 237.1 of the Income Tax Act (Canada).

Deductions and claims disallowed

(5) No amount may be deducted or claimed by a corporation for the purposes of this Act for any taxation year in respect of a tax shelter of the corporation if the corporation is liable to a penalty under subsection 237.1 (7.4) of the Income Tax Act (Canada) in respect of the tax shelter or interest on the penalty and,

(a) the penalty or interest has not been paid; or

(b) the penalty and interest have been paid, but an amount on account of the penalty or interest has been repaid under subsection 164 (1.1) of the Income Tax Act (Canada) or applied under subsection 164 (2) of that Act.

Application

(6) Subject to subsection (7), subsections (1) to (5) apply to property acquired and to outlays and expenses made or incurred by a corporation after November 30, 1994, other than property acquired and outlays or expenses made or incurred by the corporation in a taxation year ending on or before the day the Budget Measures Act, 2005 (No. 2) received first reading if, before that day, the corporation filed its return for the year or a notice of objection for the year in a manner which reflects the position that sections 143.2 and 237.1 of the Income Tax Act (Canada) do not apply for the purposes of this Act.

Same

(7) Any provision of section 143.2 of the Income Tax Act (Canada), as it applies for the purposes of this Act, does not apply to the extent that the application of that provision for the purposes of the Income Tax Act (Canada) is limited because of the application of subsection 168 (2) of the Income Tax Amendments Act, 1997 (Canada).

12. (1) Clause 57.9.1 (4) (a) of the Act is repealed and the following substituted:

(a) December 31, 2005; and

(2) Clause 57.9.1 (5) (a) of the Act is repealed and the following substituted:

(a) December 31, 2005; and

13. (1) Section 84 of the Act is amended by adding the following subsection:

Limitation of right to object to assessments or determinations

(1.0.1) Despite subsection (1), where at any time the Minister assesses tax, interest, penalties or other amounts payable under this Act by, or makes a determination in respect of, a corporation under any of the following provisions or in any of the following circumstances, the corporation may object to the assessment or determination within 180 days after the day of mailing of the notice of assessment or determination, but only to the extent that the reasons for the objection can reasonably be regarded as relating to any matter that gave rise to the assessment or determination and that was not conclusively determined by the Court, and this subsection shall not be read or construed as limiting the right of the corporation to object to an assessment or determination issued or made before that time:

1. Subsection 5 (6), subclause 80 (11) (b) (i) or subsection 80 (16), (20), (22) or (25).

2. An assessment or determination made in accordance with an order of a court vacating, varying or restoring an assessment or referring an assessment back to the Minister for reconsideration and reassessment.

3. An assessment or determination made under subsection (5) where the underlying objection relates to an assessment or a determination made under any of the provisions or circumstances referred to in paragraph 1 or 2.

4. An assessment made under a provision of a federal Act made applicable for the purposes of this Act that requires an assessment to be made that, but for that provision, would not be made because of a limitation described under section 80.

(2) Subsection 84 (4) of the Act is repealed and the following substituted:

Computation of time

(4) For the purpose of calculating the number of days mentioned in subsection (1), (1.0.1), (1.2) or 85 (1), the day on which a notice of assessment or determination is mailed, a request is made under subsection (1.2) or a notification is given under subsection (5) is the date stated in the notice of assessment, determination, request or notification.

14. (1) Section 85 of the Act is amended by adding the following subsection:

Limitation of right to appeal

(1.1) Despite subsection (1), where at any time the Minister assesses tax, interest, penalties or other amounts payable under this Act by, or makes a determination in respect of, a corporation under any of the following provisions or in any of the following circumstances, the corporation may appeal to the Superior Court of Justice within the time period set out in subsection (1), but only to the extent that the reasons for the appeal can reasonably be regarded as relating to any matter that gave rise to the assessment or determination and that was not conclusively determined by the Court, and this subsection shall not be read or construed as limiting the right of the corporation to appeal from an assessment or determination issued or made before that time:

1. Subsection 5 (6), subclause 80 (11) (b) (i) or subsection 80 (16), (20), (22) or (25).

3. An assessment or determination made under subsection 84 (5) where the underlying objection relates to an assessment or a determination made under any of the provisions or circumstances referred to in paragraph 1 or 2.

(2) Subsection 85 (2.4) of the Act is amended by striking out "subsection (1)" and substituting "subsections (1) and (1.1)".

15. Clause 112 (1) (g.3) of the Act is repealed.

Commencement

16. (1) Subject to subsections (2) to (9), this Schedule comes into force on the day the Budget Measures Act, 2005 (No. 2) receives Royal Assent.

Same

(2) Subsections 2 (1), (2), (3), (4) and (7) shall be deemed to have come into force on December 31, 1991.

Same

(3) Subsection 2 (5) shall be deemed to have come into force on July 1, 1993.

Same

(4) Subsection 2 (6) shall be deemed to have come into force on January 1, 1994.

Same

(5) Section 3 shall be deemed to have come into force on January 1, 1998.

Same

(6) Section 4 shall be deemed to have come into force on March 23, 2004.

Same

(7) Subsection 7 (2) shall be deemed to have come into force on May 3, 2000.

Same

(8) Subsections 7 (3) and (4) shall be deemed to have come into force on May 11, 2005.

Same

(9) Subsections 10 (1), (2) and (3) shall be deemed to have come into force on December 16, 2004.

SCHEDULE 6
ELECTRICITY ACT, 1998

1. Section 92.1 of the Electricity Act, 1998 is amended by adding the following subsection:

Exception, in unorganized territory

(2.1) Subsection (2) does not apply to a hydro-electric generating station located in territory without municipal organization that is outside the jurisdiction of a school board.

2. (1) Subsection 94 (5) of the Act is amended by striking out "paragraph 1, 2 or 3 of subsection (3)" and substituting "paragraph 1, 2, 3 or 4 of subsection (3)".

(2) Subsection 94 (9) of the Act is repealed.

(3) Subsection 94 (9.1) of the Act is repealed.

3. Clause 96 (1) (e.4) of the Act is repealed.

Commencement

4. (1) Subject to subsections (2), (3) and (4), this Schedule comes into force on the day the Budget Measures Act, 2005 (No. 2) receives Royal Assent.

Same

(2) Section 1 shall be deemed to have come into force on January 1, 2001.

Same

(3) Subsections 2 (1) and (2) shall be deemed to have come into force on November 7, 1998.

Same

(4) Subsection 2 (3) and section 3 shall be deemed to have come into force on December 16, 2004.

SCHEDULE 7
FUEL TAX ACT

1. (1) Clause 2 (1) (a) of the Fuel Tax Act is repealed.

(2) Clause 2 (1) (b) of the Act is amended by striking out "after the 31st day of December, 1991 to generate power in a motor vehicle other than railway equipment operated on rails in connection with a public transportation system" and substituting "other than clear fuel received or used by a purchaser to operate railway equipment operated on rails in connection with a public transportation system".

(3) Clause 2 (1) (c) of the Act is repealed.

(4) Clause 2 (1) (d) of the Act is amended by striking out "after the 31st day of December, 1991".

(5) Subsection 2 (2.1) of the Act is amended by striking out the portion before the formula and substituting the following:

Calculation of tax, clear fuel

(2.1) Where clear fuel is acquired and held in storage by a purchaser in Ontario prior to the effective date of an increase in the tax rate imposed by subsection (1) and where the clear fuel is to be used in a manner other than that permitted for the purposes of section 4.11 on or after the effective date of the increase in the tax rate imposed by subsection (1), the purchaser shall remit to the Minister in the prescribed manner the amount determined by the following formula:

. . . . .

2. Subsection 4.8 (4) of the Act is repealed and the following substituted:

Penalty

(4) Every exporter who fails to comply with subsection (1) or (3) shall pay to the Minister a penalty equal to the amount of tax that would be payable under this Act in respect of the fuel if the fuel were clear fuel sold to a purchaser who is liable to pay tax under clause 2 (1) (b).

3. Section 4.9 of the Act is repealed and the following substituted:

Offence, unregistered exporter

4.9 Every person who contravenes subsection 4.1 (1) is guilty of an offence and on conviction is liable to a fine of not less than $200 and not more than $10,000 plus an amount equal to three times the tax that would be payable under section 2 in respect of the fuel if the fuel were clear fuel sold to a purchaser who is liable to pay tax under clause 2 (1) (b).

4. Subsection 8 (11) of the Act is amended by striking out "clause 2 (1) (a)" and substituting "clause 2 (1) (b)".

5. Subsection 9 (3) of the Act is repealed and the following substituted:

Suspension or cancellation

(3) The Minister may suspend or cancel the designation or registration of a person under this Act or a permit issued to a person under this Act if,

(a) the person or any officer, director, shareholder or partner of the person has been convicted of an offence of fraud or tax evasion within the preceding five years; or

(b) the person contravenes or permits the contravention of this Act or the regulations or of any condition or restriction contained in the designation, registration certificate or permit.

6. Section 13 of the Act is amended by adding the following subsection:

Waiver, transitional

(10.5) Despite subsection (10), if, before December 16, 2004, a person provided the Minister with a written waiver of the time limit, the Minister may assess or reassess the person at any time in respect of the period to which the waiver applies, and subsections (10.3) and (10.4) apply with necessary modifications in respect of the waiver.

7. (1) Section 21 of the Act is amended by adding the following subsection:

Refund

(1) For the purposes of subsection (2), the calculation of the amount of tax to be refunded may include the fuel consumption rating for the auxiliary equipment as determined or approved by the Minister.

(2) Clause 21 (2) (d) of the Act is repealed and the following substituted:

(d) if the motor vehicle is not principally used by its owner or operator to transport passengers, whether or not for hire, or for pleasure or recreation; and

(e) if the auxiliary equipment is not used for personal use, pleasure or recreation.

Commencement

8. (1) Subject to subsections (2) and (3), this Schedule comes into force on the day the Budget Measures Act, 2005 (No. 2) receives Royal Assent.

Same

(2) Subsection 1 (2) shall be deemed to have come into force on November 2, 2001.

Same

(3) Section 6 shall be deemed to have come into force on December 16, 2004.

SCHEDULE 8
GASOLINE TAX ACT

1. Subsection 7 (3) of the Gasoline Tax Act is repealed and the following substituted:

Suspension or cancellation

(3) The Minister may suspend or cancel the designation or registration of a person under this Act if,

(a) the person or any officer, director, shareholder or partner of the person has been convicted of an offence of fraud or tax evasion within the preceding five years; or

(b) the person contravenes or permits the contravention of this Act or the regulations or of any condition or restriction contained in the designation or registration certificate.

2. Section 11 of the Act is amended by adding the following subsection:

Waiver, transitional

(5.1.4) Despite subsection (5), if, before December 16, 2004, a person provided the Minister with a written waiver of the time limit, the Minister may assess or reassess the person at any time in respect of the period to which the waiver applies, and subsections (5.1.2) and (5.1.3) apply with necessary modifications in respect of the waiver.

3. Subsection 33 (2) of the Act is amended by adding the following clause:

(c.1) providing for a refund to a purchaser or class of purchasers of all or part of the tax paid under this Act in respect of gasoline used to operate auxiliary equipment, providing that the refund may be calculated using a gasoline consumption rating system approved by the Minister, prescribing the records and material to be furnished on an application for a refund and prescribing the terms and conditions under which the refund may be made;

Commencement

4. (1) Subject to subsection (2), this Schedule comes into force on the day the Budget Measures Act, 2005 (No. 2) receives Royal Assent.

Same

(2) Section 2 shall be deemed to have come into force on December 16, 2004.

SCHEDULE 9
GO TRANSIT ACT, 2001

1. Clause 35 (1.1) (b) of the GO Transit Act, 2001 is repealed and the following substituted:

(b) December 31, 2006.

Commencement

2. This Schedule comes into force on the day the Budget Measures Act, 2005 (No. 2) receives Royal Assent.

SCHEDULE 10
HIGHWAY TRAFFIC ACT

1. Part XI of the Highway Traffic Act is amended by adding the following section:

Definition

191.9 In this Part,

"lessee" means a person who leases or rents a motor vehicle or street car for any period of time.

2. Section 192 of the Act is repealed and the following substituted:

Liability for loss or damage

192. (1) The driver of a motor vehicle or street car is liable for loss or damage sustained by any person by reason of negligence in the operation of the motor vehicle or street car on a highway.

Same

(2) The owner of a motor vehicle or street car is liable for loss or damage sustained by any person by reason of negligence in the operation of the motor vehicle or street car on a highway, unless the motor vehicle or street car was without the owner's consent in the possession of some person other than the owner or the owner's chauffeur.

Same

(3) A lessee of a motor vehicle or street car is liable for loss or damage sustained by any person by reason of negligence in the operation of the motor vehicle or street car on a highway, unless the motor vehicle or street car was without the lessee's consent in the possession of some person other than the lessee or the lessee's chauffeur.

Consent of lessee

(4) Where a motor vehicle is leased, the consent of the lessee to the operation or possession of the motor vehicle by some person other than the lessee shall, for the purposes of subsection (2), be deemed to be the consent of the owner of the motor vehicle.

Liability of operator of commercial motor vehicle

(5) In addition to any liability of an owner or lessee incurred under subsection (2) or (3), the operator of a commercial motor vehicle, as defined in subsection 16 (1), is liable for loss or damage sustained by any person by reason of negligence in the operation of the commercial motor vehicle on a highway.

Joint and several liability

(6) The driver, owner, lessee and operator that are liable under this section are jointly and severally liable.

Application

(7) This section applies where the loss or damage was sustained on or after the day section 2 of Schedule 10 to the Budget Measures Act, 2005 (No. 2) comes into force.

Same

(8) This section, as it read immediately before the day section 2 of Schedule 10 to the Budget Measures Act, 2005 (No. 2) comes into force, continues to apply where the loss or damage was sustained before that day.

3. Section 193 of the Act is repealed and the following substituted:

Onus of disproving negligence

193. (1) When loss or damage is sustained by any person by reason of a motor vehicle on a highway, the onus of proof that the loss or damage did not arise through the negligence or improper conduct of the owner, driver, lessee or operator of the motor vehicle is upon the owner, driver, lessee or operator of the motor vehicle.

Application

(2) This section does not apply in cases of a collision between motor vehicles or to an action brought by a passenger in a motor vehicle in respect of any injuries sustained while a passenger.

Same

(3) This section applies where the loss or damage was sustained on or after the day section 3 of Schedule 10 to the Budget Measures Act, 2005 (No. 2) comes into force.

Same

(4) This section, as it read immediately before the day section 3 of Schedule 10 to the Budget Measures Act, 2005 (No. 2) comes into force, continues to apply where the loss or damage was sustained before that day.

Definitions

(5) In this section,

"motor vehicle" includes street car; ("véhicule automobile")

"operator" has the same meaning as in subsection 16 (1). ("utilisateur")

Commencement

4. (1) Subject to subsection (2), this Schedule comes into force on the day the Budget Measures Act, 2005 (No. 2) receives Royal Assent.

Same

(2) Sections 1 to 3 come into force on a day to be named by proclamation of the Lieutenant Governor.

SCHEDULE 11
INCOME TAX ACT

1. Clause 3 (2) (a) of the Income Tax Act is repealed and the following substituted:

(a) before the addition of any amount determined under subsection (1), any amount payable under section 2.2 and any amount of additional tax determined under subsection 4.3 (2) or 4.6 (2); and

2. (1) Subsection 4 (3.1) of the Act is amended by adding the following paragraph:

20. A credit for adoption expenses.

(2) Paragraph 9 of subsection 4 (3.2) of the Act is amended by striking out "paragraphs 1 to 7, 9, 10, 11, 14, 15, 16 and 17 of subsection (3.1)" and substituting "paragraphs 1 to 7, 9, 10, 11, 14, 15, 16, 17 and 20 of subsection (3.1)".

(3) Paragraph 10 of subsection 4 (3.2) of the Act is amended by striking out "paragraphs 8 to 15 and 17 to 19 of subsection (3.1)" and substituting "paragraphs 8 to 15 and 17 to 20 of subsection (3.1)".

3. (1) Clause (b) of the definition of "D" in subsection 4.0.1 (23.1) of the Act is repealed and the following substituted:

(b) is, in respect of the dependant, the lesser of the amount set out in subsection (23.2) and the amount that would be determined by the formula "E - F" in subsection 118.2 (1) of the Federal Act, if the dollar amount set out in the description of "C" in this subsection were substituted for the dollar amount set out in the description of "F" in subsection 118.2 (1) of the Federal Act.

(2) Section 4.0.1 of the Act is amended by adding the following subsection:

Amount for purposes of subs. (23.1)

(23.2) For the purposes of subsection (23.1), the amount is,

(a) $5,000 if the taxation year is 2004; or

(b) $10,000 if the taxation year ends after 2004.

(3) Section 4.0.1 of the Act is amended by adding the following subsections:

Credit, adoption expenses

(26) The amount of an individual's credit for adoption expenses referred to in paragraph 20 of subsection 4 (3.1) for a taxation year is the amount that is determined in respect of the individual for the year under subsection (27).

Amount of adoption expense tax credit

(27) For the purposes of computing the amount of tax payable under the Act by an individual for a taxation year ending after December 31, 2004 that includes the end of the adoption period in respect of an eligible child of the individual, there may be deducted the amount determined using the formula,

A × B

where,

"A" is the lowest tax rate for the year, and

"B" is the lesser of,

(a) $10,000, and

(b) the amount determined using the formula,

C - D

where,

"C" is the total of all eligible adoption expenses in respect of the eligible child, and

"D" is the total of all amounts each of which is the amount of a reimbursement or any other form of assistance (other than an amount that is included in computing the individual's income and that is not deductible in computing the individual's taxable income) that any individual is or was entitled to receive in respect of an amount included in computing the amount of "C".

Definitions, credit for adoption expenses

(28) In subsection (27),

"adoption period" means, in respect of an eligible child of an individual, the period that,

(a) begins at the earlier of the time that the eligible child's adoption file is opened with a provincial ministry responsible for adoption or with an adoption agency licensed by a provincial government and the time, if any, that an application related to the adoption is made to a Canadian court, and

(b) ends at the later of the time an adoption order is issued or recognized by a government in Canada in respect of that child and the time that the child first begins to reside permanently with the individual; ("période d'adoption")

"eligible adoption expense" means, in respect of an eligible child of an individual, an amount paid in respect of the adoption of that child during the adoption period including,

(a) fees paid to an adoption agency licensed by a provincial government,

(b) court costs and legal and administrative expenses related to an adoption order in respect of that child,

(d) document translation fees,

(e) mandatory fees paid to a foreign institution, and

(f) any other reasonable expenses related to the adoption required by a provincial government or an adoption agency licensed by a provincial government; ("dépense d'adoption admissible")

"eligible child" means, in respect of an individual, a child who has not attained the age of 18 years at the time that an adoption order is issued or recognized by a government in Canada in respect of the adoption of that child by that individual. ("enfant admissible")

Apportionment of credit for adoption expenses

(29) If more than one individual is entitled to deduct a credit for adoption expenses referred to in paragraph 20 of subsection 4 (3.1) for a taxation year in respect of the adoption of an eligible child, the total of all amounts deductible by them shall not exceed the maximum amount that would be deductible for the year by any one of those individuals for that child if that individual were the only individual entitled to deduct an amount for the year under this section, and if the individuals cannot agree as to what portion of the amount each can deduct, the Provincial Minister may fix the portions.

4. (1) Paragraph 1 of subsection 4.0.2 (1) of the Act, as re-enacted by the Statutes of Ontario, 2004, chapter 31, Schedule 19, section 2, is amended by striking out "(23.1) and 7 (2.4)" and substituting "(23.1), (23.2) and 7 (2.4)".

(2) Subsection 4.0.2 (1) of the Act is amended by adding the following paragraph:

1.1 Subsection 4.0.1 (27).

(3) Paragraph 4 of subsection 4.0.2 (6) of the Act is repealed and the following substituted:

4. The dollar amounts referred to in subsection 4.0.1 (23.1) that apply for a taxation year ending before January 1, 2005 and the dollar amounts referred to in subsection 4.0.1 (23.2) that apply for a taxation year ending before January 1, 2006.

(4) Subsection 4.0.2 (6) of the Act is amended by adding the following paragraph:

5. The dollar amount referred to in 4.0.1 (27) that applies for a taxation year ending before January 1, 2006.

5. (1) The definition of "B" in subsection 4.6 (2) of the Act is amended by striking out "sections 3, 4.3, 4.4 and 4.6 to 4.8" and substituting "sections 4.3, 4.4 and 4.6 to 4.8".

(2) Clause (a) of the definition of "E" in subsection 4.6 (4) of the Act is amended by striking out "sections 3, 4.3, 4.4 and 4.6 to 4.8" and substituting "sections 4.3, 4.4 and 4.6 to 4.8".

6. (1) Subsection 8 (3.1) of the Act is repealed and the following substituted:

Tax credits for seniors, cohabiting spouse or common-law partner

(3.1) Subject to subsection (7), every senior who, on December 31 in a taxation year ending after December 31, 2004, is resident in Ontario and resides with a cohabiting spouse or common-law partner may deduct from tax otherwise payable by the senior under this Act in respect of the taxation year the amount, if any, not in excess of $1,125, by which the aggregate of the tax credits described in clauses (a) and (b) to which the senior is entitled exceeds the amount, if any, by which 4 per cent of the senior's adjusted income for the taxation year exceeds $22,250, that is to say,

(a) a property tax credit equal to the sum of,

(i) the lesser of the senior's occupancy cost for the taxation year and $625, and

(ii) an amount equal to 10 per cent of the senior's occupancy cost for the taxation year; and

(b) subject to subsection (6), a sales tax credit equal to the aggregate of,

(i) $100 in respect of the senior,

(ii) $100 in respect of any person who is the senior's cohabiting spouse or common-law partner with whom the senior resides on December 31 in the taxation year,

(iii) $50 in respect of every person who is a qualified dependant at any time in the taxation year in respect of an eligible individual who is the senior or a person who is the senior's cohabiting spouse or common-law partner with whom the senior resides on December 31 in the taxation year, and

(iv) $50 in respect of every person under the age of 19 years on December 31 in the taxation year who would be a qualified dependant described in subclause (iii) but for having attained the age of 18 years.

(2) Section 8 of the Act is amended by adding the following subsection:

Tax credits for seniors, no cohabiting spouse or common-law partner

(3.2) Every senior who, on December 31 in a taxation year ending after December 31, 2004, is resident in Ontario and does not reside with a cohabiting spouse or common-law partner may deduct from tax otherwise payable by the senior under this Act in respect of the taxation year the amount, if any, not in excess of $1,125, by which the aggregate of the tax credits described in clauses (a) and (b) to which the senior is entitled exceeds the amount, if any, by which 4 per cent of the senior's adjusted income for the taxation year exceeds $22,000, that is to say,

(a) a property tax credit equal to the sum of,

(i) the lesser of the senior's occupancy cost for the taxation year and $625, and

(ii) an amount equal to 10 per cent of the senior's occupancy cost for the taxation year; and

(b) subject to subsection (6), a sales tax credit equal to the aggregate of,

(i) $100 in respect of the senior,

(ii) $50 in respect of every person who is a qualified dependant at any time in the taxation year in respect of the senior, and

(iii) $50 in respect of every person under the age of 19 years on December 31 in the taxation year who would be a qualified dependant described in subclause (ii) but for having attained the age of 18 years.

(3) Subsection 8 (6) of the Act is repealed and the following substituted:

Rules for determining sales tax credits

(6) In determining the amount of a sales tax credit under clause (3) (b), (3.1) (b) or (3.2) (b) for a taxation year,

(a) no amount in respect of a person shall be included if another individual or senior has included an amount in respect of that person in determining the sales tax credit of that other individual or senior for the taxation year;

(b) no amount may be claimed under subclause (3) (b) (i), (3.1) (b) (i) or (3.2) (b) (i) by an individual or senior in respect of whom another individual or senior has claimed an amount under clause (3) (b) or (3.1) (b);

(c) no amount may be claimed by an individual or senior under subclause (3) (b) (iii) or (iv), (3.1) (b) (iii) or (iv) or (3.2) (b) (ii) or (iii) in respect of an individual who has claimed an amount under subclause (3) (b) (i); and

(d) no amount may be claimed by or in respect of an individual who was, on December 31 in the taxation year, confined to a prison or similar institution and has been so confined for a period of, or periods the aggregate of which in the year was, more than six months.

(4) Subsections 8 (7.1), (7.2) and (7.3) of the Act are amended by striking out "clause (3) (a) or (3.1) (a)" wherever it appears and substituting in each case "clause (3) (a) or clause (3.1) (a), as it read before January 1, 2005".

(5) Subsection 8 (8.1) of the Act is amended by striking out "subsection (3), (3.1), (4)" in the portion before clause (a) and substituting "subsection (3), (3.1), (3.2), (4)".

(6) The English version of clause 8 (8.1.1) (e) of the Act is amended by striking out "and" at the end.

(7) Clause 8 (8.1.1) (f) of the Act is amended by striking out "for the 2001 and each subsequent taxation year" in the portion before subclause (i) and substituting "for each taxation year ending after 2000 and before 2009".

(8) Subsection 8 (8.1.1) of the Act is amended by adding the following clauses:

(g) for the 2009 taxation year, unless otherwise prescribed, the amount equal to the total of,

(i) the lesser of $500 and the amount equal to 10 per cent of the equity capital received from the taxpayer during that taxation year or during the first 60 days of the following year by the corporations on the issue of Class A shares, and

(ii) the lesser of $250 and the amount equal to 5 per cent of the equity capital received from the taxpayer during that taxation year or during the first 60 days of the following year by the corporations on the issue of Class A shares, if the shares were issued by the corporations as research oriented investment funds under subsection 16.1 (2) of the Community Small Business Investment Funds Act; and

(h) for the 2010 taxation year, unless otherwise prescribed, the amount equal to the total of,

(i) the lesser of $250 and the amount equal to 5 per cent of the equity capital received from the taxpayer during that taxation year or during the first 60 days of the following year by the corporations on the issue of Class A shares, and

(9) Subsection 8 (12) of the Act is amended by striking out "subsection (3) or (3.1)" and substituting "subsection (3), (3.1) or (3.2)".

(10) Paragraph 4 of subsection 8 (17) of the Act is amended by striking out "clause (3) (a) or (3.1) (a)" and substituting "clause (3) (a), (3.1) (a) or (3.2) (a)".

7. (1) The definition of "C" in the definition of "A" in subsection 8.4.5 (3) of the Act is repealed and the following substituted:

"C" is the total number of days in the taxation year that the apprentice was employed by the employer as an apprentice in a qualifying apprenticeship and that were,

(a) after May 18, 2004 and before January 1, 2011, and

(b) during the first 36 months the apprentice was in the apprenticeship program, and

(2) Subsection 8.4.5 (8) of the Act is repealed and the following substituted:

Eligible expenditure

(8) Subject to subsections (10) and (11), each of the following amounts paid by an employer in respect of a qualifying apprenticeship is an eligible expenditure for the taxation year:

1. An amount paid to an apprentice in a qualifying apprenticeship if,

i. the amount is on account of salary or wages paid to an employee who reports for work at a permanent establishment of the employer in Ontario,

ii. the amount is required by subdivision a of Division B of Part I of the Federal Act to be included in the apprentice's income from a source that is an office or employment,

iii. the amount is in respect of a qualifying apprenticeship and is paid or payable for services performed by the apprentice for the employer after May 18, 2004 and before January 1, 2011, and

iv. the amount relates to services provided by the apprentice to the employer during the first 36 months of the apprenticeship program and does not relate to services performed before the commencement or after the end of the apprenticeship program.

2. A fee paid to an employment agency in consideration for the provision of services performed by the apprentice in the qualifying apprenticeship if,

i. the services are performed by the apprentice primarily at a permanent establishment of the employer in Ontario,

ii. the fee is paid or payable for services performed by the apprentice for the employer after May 18, 2004 and before January 1, 2011, and

iii. the fee relates to services performed by the apprentice for the employer during the first 36 months of the apprenticeship program and does not relate to services performed before the commencement or after the end of the apprenticeship program.

(3) Section 8.4.5 of the Act is amended by adding the following subsection:

Employment agencies

(11.1) If an employer pays a fee to an employment agency in respect of a qualifying apprenticeship that is an eligible expenditure of the employer for a taxation year,

(a) the employer is deemed to employ the apprentice for the purposes of the definition of "C" in the definition of "A" in subsection (3), and the employment agency is deemed not to employ the apprentice; and

(b) the apprentice is deemed to serve the apprenticeship with the employer for the purposes of clause (10) (a), and not with the employment agency.

(4) Section 8.4.5 of the Act is amended by adding the following subsection:

Limitation

(11.2) If an amount paid by an employer is an eligible expenditure under this section and is also an eligible expenditure for the purposes of section 8.2, the employer may include the amount in computing the amount of a tax credit under this section or in computing the amount of a tax credit under section 8.2 and not in computing both tax credits.

8. Subsection 8.8 (2) of the Act is repealed and the following substituted:

Interest

(2) If an individual's refund under section 8.7 for a taxation year is paid or applied to a liability of the individual, the Provincial Minister shall pay or apply interest on the refund at the rate prescribed by the regulations for the period,

(a) that begins on the day that is the later of,

(i) the day that is,

(A) 45 days after the balance-due day of the taxpayer for the taxation year, if the taxation year commences before January 1, 2005, or

(B) 30 days after the balance-due day of the taxpayer for the taxation year, if the taxation year commences after December 31, 2004, 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

(b) that ends on the day when the refund is paid or applied.

9. Section 10 of the Act is amended by adding the following subsection:

Exception, additional tax amount

(5) Despite any provision of the Federal Act referred to in subsection (1), an assessment or reassessment of tax payable under section 4 of this Act for a taxation year ending after December 31, 1999 may be made at any time if the reason for the assessment or reassessment is,

(a) to assess or reassess the amount of additional tax, if any, payable by an individual for the taxation year under section 3 after the exclusion from the individual's gross tax amount for the taxation year all amounts of additional tax determined under subsection 4.3 (2) or 4.6 (2) in respect of a previous taxation year; or

(b) to determine or redetermine the individual's additional tax amount for the taxation year under subsection 4.6 (2) by including in the calculations the amount of additional tax payable under section 3.

Commencement

10. (1) Subject to subsections (2) to (5), this Schedule comes into force on the day the Budget Measures Act, 2005 (No. 2) receives Royal Assent.

Same

(2) Sections 1 and 5 shall be deemed to have come into force on January 1, 2000.

Same

(3) Sections 2, 3 and 4 come into force on a day to be named by proclamation of the Lieutenant Governor.

Same

(4) Subsections 6 (1), (2), (3), (4), (5), (9) and (10) shall be deemed to have come into force on January 1, 2005.

Same

(5) Subsections 7 (1), (2) and (3) shall be deemed to have come into force on December 16, 2004.

SCHEDULE 12
INSURANCE ACT

1. Subsection 121 (1) of the Insurance Act is amended by adding the following paragraphs:

23.6.2 prescribing types of amounts and the manner of determining any type of amount for the purposes of clause 267.12 (2) (c);

23.6.3 prescribing types of amounts and the manner of determining any type of amount for the purposes of clause 267.12 (3) (c);

23.6.4 prescribing, for the purposes of subsection 267.12 (4),

i. circumstances in which subsection 267.12 (1) does not apply,

ii. persons or classes of persons to whom subsection 267.12 (1) does not apply,

iii. motor vehicles or classes of motor vehicles to which subsection 267.12 (1) does not apply,

iv. terms, conditions, provisions, exclusions and limits for the purposes of determining if subsection 267.12 (1) applies in particular circumstances or to a prescribed person, prescribed class of persons, prescribed motor vehicle or prescribed class of motor vehicles;

23.6.5 defining the terms "taxicab", "livery vehicle" and "limousine for hire" for the purposes of clause 267.12 (4) (c);

2. Subsection 265 (2) of the Act is amended by adding the following definition:

"owner" includes, in respect of an accident occurring on or after the day this definition comes into force, a person who is a lessee for the purposes of section 192 of the Highway Traffic Act; ("propriétaire")

3. Section 267.3 of the Act is repealed and the following substituted:

Definitions, ss. 267.4 to 267.12

267.3 In sections 267.4 to 267.12,

"owner" includes an operator as defined in subsection 16 (1) of the Highway Traffic Act and a person who is a lessee for the purposes of section 192 of that Act; ("propriétaire")

"protected defendant" means a person who is protected from liability by subsections 267.5 (1), (3) and (5). ("défendeur exclu")

4. The Act is amended by adding the following section:

Liability of lessors

267.12 (1) Despite any other provision in this Part, except subsections (4) and (5), in an action in Ontario for loss or damage from bodily injury or death arising directly or indirectly from the use or operation of a motor vehicle that is leased, the maximum amount for which the lessor or lessors of the motor vehicle are liable in respect of the same incident in their capacity as lessors of the motor vehicle is the amount determined under subsection (3) less any amounts,

(a) that are recovered for loss or damage from bodily injury or death under the third party liability provisions of contracts evidenced by motor vehicle liability policies issued to persons other than a lessor;

(b) that are in respect of the use or operation of the motor vehicle; and

Same

(2) For the purposes of subsection (1), the amounts referred to in clauses (1) (a), (b) and (c) include only amounts recovered under the coverages referred to in subsections 239 (1) and (3) and section 241 and exclude,

(a) any sum referred to in subsection 265 (1);

(b) any amount payable as damages by the Motor Vehicle Accident Claims Fund under the Motor Vehicle Accident Claims Act; and

Maximum amount

(3) The maximum amount for the purposes of subsection (1) is the greatest of,

(a) $1,000,000;

(b) the amount of third party liability insurance required by law to be carried in respect of the motor vehicle; and

(c) the amount determined in the manner prescribed by the regulations, if regulations are made prescribing the manner for determining an amount for the purposes of this clause.

Exceptions

(4) Subsection (1) does not apply,

(a) in such circumstances as may be prescribed by the regulations or to such persons, classes of persons, motor vehicles or classes of motor vehicles as may be prescribed in the regulations, subject to such terms, conditions, provisions, exclusions and limits as may be prescribed by the regulations;

(b) in respect of amounts payable by a lessor other than by reason of the vicarious liability imposed under section 192 of the Highway Traffic Act; or

Application of subs. (1)

(5) Subsection (1) applies only to proceedings for loss or damage from bodily injury or death arising from the use or operation of a motor vehicle on or after the day this section comes into force.

Definitions

(6) In this section,

"lessor" means, in respect of a motor vehicle, a person who is leasing or renting the motor vehicle to another person for any period of time, and "leased" has a corresponding meaning; ("bailleur")

"motor vehicle" has the same meaning as in subsection 1 (1) of the Highway Traffic Act. ("véhicule automobile")

5. Section 269 of the Act is amended by adding the following subsection:

Definition

(4) In this section,

"owner" includes a person who is a lessee for the purposes of section 192 of the Highway Traffic Act.

6. (1) Section 277 of the Act is amended by adding the following subsections:

Order in which policies are to respond

(1.1) Despite subsection (1), if an automobile is leased, the following rules apply to determine the order in which the third party liability provisions of any available motor vehicle liability policies shall respond in respect of liability arising from or occurring in connection with the ownership or, directly or indirectly, with the use or operation of the automobile on or after the day this subsection comes into force:

1. Firstly, insurance available under a contract evidenced by a motor vehicle liability policy under which the lessee of the automobile is entitled to indemnity as an insured named in the contract.

2. Secondly, insurance available under a contract evidenced by a motor vehicle liability policy under which the driver of the automobile is entitled to indemnity, either as an insured named in the contract, as the spouse of an insured named in the contract who resides with that insured or as a driver named in the contract, is excess to the insurance referred to in paragraph 1.

3. Thirdly, insurance available under a contract evidenced by a motor vehicle liability policy under which the owner of the automobile is entitled to indemnity as an insured named in the contract is excess to the insurance referred to in paragraphs 1 and 2.

If more than one policy required to respond

(1.2) For the purposes of the application of each of paragraphs 1, 2 and 3 of subsection (1.1), if insurance is available under more than one motor vehicle liability policy that is required to respond, each insurer is liable only for its rateable proportion of any liability, expense, loss or damage.

Exceptions

(1.3) Subsection (1.1) does not apply,

(a) to an insured's right of recovery referred to in subsection 263 (2);

(b) if the automobile is not a motor vehicle as defined in subsection 1 (1) of the Highway Traffic Act; or

(2) Subsection 277 (3) of the Act is amended by striking out "subsection (2)" in the portion before clause (a) and substituting "subsections (1.2) and (2)".

(3) Section 277 of the Act is amended by adding the following subsection:

Lessee defined

(4) In this section,

"lessee" means, in respect of an automobile, a person who is leasing or renting the automobile for any period of time, and "leased" has a corresponding meaning.

Commencement

7. (1) Subject to subsection (2), this Schedule comes into force on the day the Budget Measures Act, 2005 (No. 2) receives Royal Assent.

Same

(2) Sections 1 to 6 come into force on a day to be named by proclamation of the Lieutenant Governor.

SCHEDULE 13
LAND TRANSFER TAX ACT

1. Section 12 of the Land Transfer Tax Act is amended by adding the following subsection:

Waiver, transitional

(4.4) Despite subsection (4), if, before December 16, 2004, a person provided the Minister with a written waiver of the time limit, the Minister may assess or reassess the person at any time in respect of the conveyance or disposition to which the waiver applies, and subsections (4.2) and (4.3) apply with necessary modifications in respect of the waiver.

Commencement

2. (1) Subject to subsection (2), this Schedule comes into force on the day the Budget Measures Act, 2005 (No. 2) receives Royal Assent.

Same

(2) Section 1 shall be deemed to have come into force on December 16, 2004.

SCHEDULE 14
MANAGEMENT BOARD OF CABINET ACT

1. Section 3 of the Management Board of Cabinet Act is amended by adding the following subsection:

Delegation

(6) The Board may delegate to any member of the Executive Council or to any person employed in the public service any power, duty or function of the Board, subject to such limitations and requirements as the Board may specify.

Commencement

2. This Schedule comes into force on the day the Budget Measures Act, 2005 (No. 2) receives Royal Assent.

SCHEDULE 15
MINISTRY OF REVENUE ACT

1. The Ministry of Revenue Act is amended by adding the following sections:

Alternative means for delivery of documents and information

Definitions

16. (1) In this section and in sections 17 and 18,

"Act" means an Act administered by the Minister; ("loi")

"regulation" means a regulation made under an Act; ("règlement")

"send" includes, in respect of a document or information, deliver, file, serve, give or transmit the document or information by any means. ("envoyer")

Minister may approve alternative means of delivery

(2) The Minister may approve one or more alternative means of delivery,

(a) by which the Minister or another person may satisfy a requirement in an Act or regulation to send a document or information by mail or registered mail or to notify the Minister or another person by mail or registered mail; or

(b) by which a person may satisfy a requirement in an Act or regulation to send information that is required to be provided to the Minister or another person in a prescribed or approved form.

Same

(3) The Minister may approve an alternative means of delivery that has general application or that applies only to particular documents or information or in particular circumstances and may establish conditions that must be satisfied before a person may send or receive documents or information through the alternative means of delivery.

Exception

(4) The Minister shall not approve an alternative means of delivery unless the recipient of a document or information sent by the alternative means will be able to access the document or information and retain it for subsequent reference.

Rules

(5) If the Minister approves an alternative means of delivery under subsection (2), the following rules apply:

1. Subject to section 17, no person shall be required, without his or her consent, to send a document or information by the alternative means of delivery or to accept a document or information sent by the alternative means of delivery.

2. The Minister shall not be required to accept a document or information sent by the alternative means of delivery if the sender has not complied with any conditions established by the Minister in respect of the use by senders of the alternative means of delivery.

3. For the purposes of determining when a document or information is received by the Minister, a document or information sent by the alternative means of delivery shall not be considered to be received by the Minister unless the document or information is in a form that can be accessed and retained by the Minister for subsequent reference.

Revocation of approval of alternative means

(6) The Minister may, at any time, revoke his or her approval of an alternative means of delivery.

Minister may require use of specified means of delivery

17. (1) Despite section 3 of the Electronic Commerce Act, 2000 and any other Act or regulation, such persons or classes of persons as may be specified by the Minister shall do one or more of the following:

1. Send such documents or information under an Act or regulation as may be specified by the Minister by using such electronic or other means as may be specified by the Minister.

2. Receive by such electronic or other means as may be specified by the Minister such documents or information as may be specified by the Minister that are sent under an Act or regulation.

3. Make such payments or tax remittances under an Act or regulation as may be specified by the Minister by using such electronic or other means as may be specified by the Minister.

4. Receive such payments under an Act or regulation as may be specified by the Minister by such electronic or other means as may be specified by the Minister.

Time of receipt

(2) For the purposes of determining when a document or information is received by the Minister, a document or information sent by a means specified by the Minister shall not be considered to be received by the Minister unless the document or information is in a form that can be accessed and retained by the Minister for subsequent reference.

Forms and records

18. Despite any other Act or regulation, the Minister may require any person to maintain any book, record, other document or information required to be kept or maintained for the purposes of an Act or regulation in a form specified by the Minister and may dispense with,

(a) a requirement under any other Act or regulation to maintain any book, record, other document or information for a particular period of time and may specify a period of time that will apply instead; and

(b) a requirement under any other Act or regulation that any book, record, other document or information be kept in a particular form and may specify the form in which it is to be kept.

Commencement

2. This Schedule comes into force on the day the Budget Measures Act, 2005 (No. 2) receives Royal Assent.

SCHEDULE 16
MORTGAGE BROKERS ACT

1. The Table to section 7.7 of the Mortgage Brokers Act is repealed and the following substituted:

TABLE

Column 1	Column 2
A bank	Bank Act (Canada)
A retail association as defined under the Cooperative Credit Associations Act (Canada)	Cooperative Credit Associations Act (Canada)
A credit union	Credit Unions and Caisses Populaires Act, 1994
An insurance company	Insurance Act
An insurance company	Insurance Companies Act (Canada)
A trust corporation	Trust and Loan Companies Act (Canada)
A loan corporation	Trust and Loan Companies Act (Canada)
Another mortgage broker	This Act

2. Clause 7.8 (1) (k) of the Act is amended by striking out "sections 7.3" and substituting "sections 7.2".

Commencement

3. (1) Subject to subsection (2), this Schedule comes into force on the day the Budget Measures Act, 2005 (No. 2) receives Royal Assent.

Same

(2) Sections 1 and 2 come into force on a day to be named by proclamation of the Lieutenant Governor.

SCHEDULE 17
MUNICIPAL ACT, 2001

1. (1) Clause (a) of the definition of "development period" in subsection 365.1 (1) of the Municipal Act, 2001 is amended by striking out "subsection (3)" and substituting "subsection (2)".

(2) The definition of "rehabilitation period" in subsection 365.1 (1) of the Act is amended by striking out the portion before clause (a) and substituting the following:

"rehabilitation period" means, with respect to an eligible property, the period of time starting on the date on which the by-law under subsection (2) providing tax assistance for the property is passed and ending on the earliest of,

. . . . .

(3) The definition of "tax assistance" in subsection 365.1 (1) of the Act is repealed and the following substituted:

"tax assistance" means, with respect to an eligible property, the cancellation or deferral of taxes pursuant to a by-law passed under subsection (2). ("aide fiscale")

(4) Subsections 365.1 (2) and (3) of the Act are repealed and the following substituted:

By-law to cancel taxes

(2) Subject to subsection (6), a local municipality may pass by-laws providing for the cancellation of all or a portion of the taxes for municipal and school purposes levied on one or more specified eligible properties, on such conditions as the municipality may determine, and a by-law may apply in respect of the rehabilitation period for a specified property, the development period for a specified property, or both.

(5) Subsection 365.1 (3.1) of the Act is amended by striking out "or (3)" in the portion before clause (a).

(6) Subsection 365.1 (4) of the Act is repealed and the following substituted:

Notice to upper-tier municipality

(4) If a lower-tier municipality intends to pass a by-law under subsection (2), it shall give a copy of the proposed by-law to the upper-tier municipality.

Cancellation of taxes, upper-tier municipality

(4.1) Upon receiving a copy of the proposed by-law from the lower-tier municipality, the upper-tier municipality may, by resolution, agree that the by-law may also provide for the cancellation of all or a portion of the taxes levied for upper-tier purposes, and the by-law so agreed to by the upper-tier municipality and passed by the lower-tier municipality is binding on the upper-tier municipality.

(7) Subsection 365.1 (5) of the Act is amended by striking out "or (3)" in the portion before paragraph 1.

(8) Paragraph 2 of subsection 365.1 (5) of the Act is repealed and the following substituted:

2. A copy of the resolution, if any, passed by the upper-tier municipality under subsection (4.1).

(9) Subsection 365.1 (5) of the Act is amended by adding the following paragraph:

6. Such other information as may be prescribed by the Minister of Finance.

(10) Subsection 365.1 (6) of the Act is amended by striking out "or (3)".

(11) Subsection 365.1 (7) of the Act is amended by striking out "or (3)".

(12) Subsection 365.1 (9) of the Act is amended by striking out "for the property during the rehabilitation period of the property" at the end.

(13) Subsections 365.1 (10) and (11) of the Act are repealed.

(14) Subsections 365.1 (17), (18), (19) and (20) of the Act are repealed.

(15) Subsection 365.1 (21) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Refund or credit

(21) In providing tax assistance for an eligible property, the local municipality may,

. . . . .

(16) Subsection 365.1 (22) of the Act is repealed and the following substituted:

Tax roll

(22) The treasurer of the local municipality shall alter the tax roll to reflect the tax assistance provided for an eligible property.

(17) Subsection 365.1 (24) of the Act is repealed and the following substituted:

Effect of repeal or amendment of by-law

(24) The local municipality may repeal or amend a by-law passed under subsection (2) with respect to a particular eligible property, but the repeal or amendment does not extinguish a right to tax assistance under the by-law unless the owner of the property consents in writing to the repeal or amendment.

(18) Subsection 365.1 (25) of the Act is amended by striking out "or (3)" wherever it appears.

(19) Subsection 365.1 (26) of the Act is amended by striking out "or (3)" at the end.

(20) Subsection 365.1 (27) of the Act is repealed and the following substituted:

Regulations by Minister of Finance

(27) The Minister of Finance may make regulations prescribing information for the purposes of paragraph 6 of subsection (5).

Commencement

2. This Schedule comes into force on the day the Budget Measures Act, 2005 (No. 2) receives Royal Assent.

SCHEDULE 18
PENSION BENEFITS ACT

1. (1) Section 1 of the Pension Benefits Act is amended by adding the following definitions:

"going concern unfunded liability" means, with respect to a pension plan, a going concern unfunded liability as determined in accordance with the prescribed requirements; ("passif à long terme non capitalisé")

"jointly sponsored pension plan" means a pension plan described in subsection (2) and includes such other pension plans as may be prescribed; ("régime de retraite conjoint")

"solvency deficiency" means, with respect to a pension plan, a solvency deficiency as determined in accordance with the prescribed requirements; ("déficit de solvabilité")

(2) Section 1 of the Act is amended by adding the following subsection:

Jointly sponsored pension plans

(2) For the purposes of this Act, a pension plan is a jointly sponsored pension plan if it has the following characteristics:

1. It provides defined benefits.

2. The defined benefits are contributory benefits.

3. Members of the pension plan are required, by virtue of the documents that create and support the plan, to make contributions in respect of any going concern unfunded liability and solvency deficiency of the plan.

4. The plan satisfies such additional criteria as may be prescribed.

2. (1) Clause 8 (1) (f) of the Act is repealed and the following substituted:

(f) a corporation, board, agency or commission made responsible by an Act of the Legislature for the administration of the pension plan;

(2) Subsection 8 (1) of the Act is amended by adding "or" at the end of clause (g) and by adding the following clause:

(h) such other person or entity as may be prescribed.

3. Section 10 of the Act is amended by adding the following subsections:

Jointly sponsored pension plans

(3) The documents that create and support a jointly sponsored pension plan shall also set out the following information:

1. The obligation of members to make contributions under the plan, including contributions in respect of any going concern unfunded liability and solvency deficiency.

2. The obligation of employers to make contributions under the plan, including contributions in respect of any going concern unfunded liability and solvency deficiency, or the obligation of other persons or entities to make the contributions under the plan on behalf of employers.

Same

(4) The documents that create and support a jointly sponsored pension plan may authorize a prescribed person or entity to establish or maintain a separate jointly sponsored pension plan for persons employed in less than full-time continuous employment.

4. Section 34 of the Act is amended by adding the following subsection:

Same, jointly sponsored pension plan

(2) If the documents that create and support a jointly sponsored pension plan so authorize, a prescribed person or entity may establish or maintain a separate jointly sponsored pension plan for employees employed in less than full-time continuous employment if the separate plan provides pension benefits and other benefits reasonably equivalent to those provided under the jointly sponsored pension plan maintained for employees of the same class employed in full-time continuous employment.

5. Section 40 of the Act is amended by adding the following subsection:

Consent of administrator, jointly sponsored pension plan

(4) For the purposes of subsection (2) and clause 14 (1) (c), where the consent of the administrator is an eligibility requirement for entitlement to receive an ancillary benefit under a jointly sponsored pension plan and a member or former member has met all other eligibility requirements, the administrator shall be deemed to have given the consent to the member or former member.

6. (1) Subsection 55 (2) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Payment by employers, etc.

(2) An employer required to make contributions under a pension plan, or a person or entity required to make contributions under a pension plan on behalf of an employer, shall make the contributions in accordance with the prescribed requirements for funding and shall make the contributions in the prescribed manner and at the prescribed times,

. . . . .

(2) Section 55 of the Act is amended by adding the following subsection:

Payment by members

(3) Members of a pension plan that provides contributory benefits shall make the contributions required under the plan in the prescribed manner and at the prescribed times.

(3) Section 55 of the Act is amended by adding the following subsection:

Same, jointly sponsored pension plans

(4) Members of a jointly sponsored pension plan shall make the contributions required under the plan, including contributions in respect of any going concern unfunded liability and solvency deficiency, in accordance with the prescribed requirements for funding and shall make the contributions in the prescribed manner and at the prescribed times.

7. Section 56.1 of the Act is amended by adding the following subsection:

Exception

(1.1) Subsection (1) does not apply if the administrator is also the trustee of the pension fund.

8. Section 68 of the Act is amended by adding the following subsection:

Same, jointly sponsored pension plans

(1.1) The following rules apply, and subsection (1) does not apply, with respect to jointly sponsored pension plans:

1. If a jointly sponsored pension plan is also a multi-employer pension plan, the administrator may wind up the plan in whole or in part unless the documents that create and support the plan authorize another person or entity to do so. In that case, the authorized person or entity may wind up the plan in whole or in part.

2. If a jointly sponsored pension plan is not a multi-employer pension plan, the administrator or another person or entity may wind up the plan in whole or in part if the documents that create and support the plan authorize the administrator, person or entity to do so.

9. Section 74 of the Act is amended by adding the following subsection:

Consent of administrator, jointly sponsored pension plans

(7.1) For the purposes of this section, where the consent of the administrator of a jointly sponsored pension plan is an eligibility requirement for entitlement to receive an ancillary benefit, the administrator shall be deemed to have given the consent.

10. Section 75 of the Act is amended by adding the following subsection:

Exception, jointly sponsored pension plans

(3) This section does not apply with respect to jointly sponsored pension plans.

11. The Act is amended by adding the following section:

Liability on wind-up, jointly sponsored pension plans

Employers, etc.

75.1 (1) Where a jointly sponsored pension plan is wound up in whole or in part, the employer or the person or entity required to make contributions under the plan on behalf of the employer shall pay into the pension fund,

(a) an amount equal to the total of all payments that, under this Act, the regulations and the plan, are payable by the employer or by the person or entity on behalf of the employer, that are due or have accrued and that have not been paid into the pension fund; and

(b) any additional amounts that, under the documents that create and support the plan, are payable in the circumstances by the employer or the person or entity on behalf of the employer.

Members

(2) Where a jointly sponsored pension plan is wound up in whole or in part, the members shall pay into the pension fund,

(a) an amount equal to the total of all payments that, under this Act, the regulations and the plan, are payable by the members, that are due or have accrued and that have not been paid into the pension fund; and

(b) any additional amounts that, under the documents that create and support the plan, are payable in the circumstances by the members.

Payments

(3) The payments required by subsections (1) and (2) shall be made in the prescribed manner and at the prescribed times.

12. Section 115 of the Act is amended by adding the following subsections:

Transitional authority re jointly sponsored pension plans

(5) A regulation relating to a jointly sponsored pension plan, including a regulation under subsection 55 (2) or (4), may be made retroactive to December 31, 2004.

Repeal of transitional authority

(6) Subsection (5) is repealed on January 1, 2007.

Commencement

13. (1) Subject to subsections (2), (3) and (4), this Schedule comes into force on the day the Budget Measures Act, 2005 (No. 2) receives Royal Assent.

Same

(2) Section 1, subsection 2 (2) and sections 3, 6 and 12 come into force on a day to be named by proclamation of the Lieutenant Governor and, upon being proclaimed into force, each of those provisions shall be deemed to have come into force on December 31, 2004.

Same

(3) Subsection 2 (1) and sections 4, 8, 10 and 11 come into force on a day to be named by proclamation of the Lieutenant Governor.

Same

(4) Sections 5 and 9 come into force on January 1, 2007.

SCHEDULE 19
RETAIL SALES TAX ACT

1. (1) The definition of "insurance" in subsection 1 (1) of the Retail Sales Tax Act is repealed and the following substituted:

"insurance" means the undertaking by one person to indemnify another person against loss or liability for loss in respect of a certain risk or peril to which the object of the insurance may be exposed, or to pay a sum of money or other thing of value upon the happening of a certain event, and includes life insurance; ("assurance")

(2) The definition of "insurer" in subsection 1 (1) of the Act is repealed and the following substituted:

"insurer" means the person who undertakes or agrees or offers to undertake a contract of insurance and includes an exchange, as defined under the Insurance Act, a reciprocal insurance exchange, as defined under that Act, and an association registered under the Prepaid Hospital and Medical Services Act; ("assureur")

2. Subsection 2 (8) of the Act is repealed.

3. The Act is amended by adding the following section:

Simplified tax calculation, computer services

Definition

2.0.2 (1) In this section,

"eligible service contract" means a contract for the provision for a single price of,

(a) taxable services described in clause (c.1) or (d.1) of the definition of "taxable service" in subsection 1 (1), and

(b) non-taxable services relating to computer programs.

Minister may establish program

(2) Despite subsection 2 (3), the Minister may establish a program under which the tax payable under this Act in respect of an eligible service contract shall be calculated at the rate of 6 per cent of the fair value of the eligible service contract and not at the rate of 8 per cent of the fair value of the taxable services provided in accordance with the contract.

Same

(3) A program established under this section shall apply in respect of eligible service contracts entered into during the period of time determined by the Minister to which the program applies.

Eligible vendors

(4) The Minister shall determine the classes of vendors who are eligible to collect tax calculated in accordance with this section in respect of eligible service contracts.

Application

(5) A vendor who belongs to a class of vendors referred to in subsection (4) may apply to the Minister to be authorized to collect tax calculated in accordance with this section in respect of eligible service contracts.

Obligation to pay tax calculated under this section

(6) A purchaser shall pay tax in the amount calculated under this section in respect of an eligible service contract and the vendor shall collect tax in the amount calculated under this section in respect of the contract if,

(a) the vendor is authorized by the Minister to collect tax calculated in accordance with this section in respect of eligible service contracts; and

(b) the purchaser consents to pay tax in respect of the eligible service contract in the amount calculated under this section and not in the amount that would otherwise be payable under subsection 2 (3).

4. Paragraph 26 of subsection 7 (1) of the Act is repealed and the following substituted:

26. Child seating and restraint systems that meet the specifications prescribed by the regulations made under subsection 106 (9) of the Highway Traffic Act.

Bill 197, Budget Measures Act, 2005

5. (1) This section applies only if Bill 197 ( Budget Measures Act, 2005 , introduced on May 11, 2005) receives Royal Assent.

Reference to first reading version of the Bill

(2) A reference in this section to a provision of Bill 197 is a reference to that provision as it was numbered in the first reading version of the Bill.

s. 2 (1) of Schedule M to Bill 197

(3) On the later of the day Bill 197 receives Royal Assent and the day this section comes into force or, if both days are the same day, on that day, paragraph 26 of subsection 7 (1) of the Act, as re-enacted by subsection 2 (1) of Schedule M to Bill 197, is repealed.

6. Section 18 of the Act is amended by adding the following subsection:

Waiver, transitional

(3.0.6) Despite subsections (3) and (3.0.1), if, before December 16, 2004, a person provided the Minister with a written waiver of the time limit, the Minister may assess or reassess the person at any time in respect of the period to which the waiver applies, and subsections (3.0.4) and (3.0.5) apply with necessary modifications in respect of the waiver.

7. Section 20 of the Act is amended by adding the following subsection:

Waiver, transitional

(5.3.1) If, before December 16, 2004, the vendor provided the Minister with a written waiver of the time limit, the restriction in subsection (5) does not apply and subsections (5.2) and (5.3) apply with necessary modifications in respect of the waiver.

8. Subsection 43 (8) of the Act is amended by striking out "under section 2" and substituting "under this Act".

9. Subsection 48 (3) of the Act is amended by adding the following clause:

(t) determining the basis and method for calculating, paying, collecting or accounting for tax in respect of the consumption or use of returnable containers acquired in Ontario or elsewhere in Canada and delivered into Ontario to be refilled.

Commencement

10. (1) Subject to subsections (2) and (3), this Schedule comes into force on the day the Budget Measures Act, 2005 (No. 2) receives Royal Assent.

Same

(2) Section 4 shall be deemed to have come into force on September 1, 2005.

Same

(3) Sections 6 and 7 shall be deemed to have come into force on December 16, 2004.

SCHEDULE 20
SECURITIES ACT

1. Section 3.10 of the Securities Act is amended by adding the following subsection:

Review by standing or select committee

(3) After the annual report is laid before the Assembly, a standing or select committee of the Assembly shall be empowered to review the report and to report the committee's opinions and recommendations to the Assembly.

2. (1) Section 21.2 of the Act is amended by adding the following subsection:

Clearing agencies

Prohibition

(0.1) No person or company shall carry on business in Ontario as a clearing agency unless the person or company is recognized by the Commission under this section as a clearing agency.

(2) Subsection 21.2 (3) of the Act is repealed and the following substituted:

Commission's powers

(3) The Commission may make decisions with respect to any of the following matters if the Commission is satisfied that it is in the public interest to do so:

1. Any by-law, rule, regulation, policy, procedure, interpretation or practice of a recognized clearing agency.

2. The manner in which a recognized clearing agency carries on its business.

3. Section 21.8 of the Act is amended by adding the following subsection:

Recognized clearing agency auditor

(3) At the request of the Commission, a recognized clearing agency shall appoint an auditor for the clearing agency.

4. The definition of "solicit" and "solicitation" in section 84 of the Act is amended by striking out "or" at the end of clause (e), by adding "or" at the end of clause (f) and by adding the following clause:

(g) such other activities as may be prescribed in the regulations.

5. Subsection 86 (2) of the Act is amended by adding the following clause:

(a.1) any solicitation, otherwise than by or on behalf of the management of a reporting issuer, in such other circumstances as may be prescribed in the regulations;

6. Part XXI of the Act is amended by adding the following section:

Authorized exceptions to prohibitions

121.1 If the regulations so provide, a body established under subsection 121.4 (1) by an investment fund may approve a transaction that is prohibited under this Part and, in that case, the prohibition does not apply to the transaction.

7. The Act is amended by adding the following Part:

PART XXI.1
GOVERNANCE AND OTHER REQUIREMENTS

Definition

121.2 In this Part,

"prescribed" means prescribed in the regulations.

Governance of reporting issuers

121.3 For the purposes of this Act, a reporting issuer shall comply with such requirements as may be prescribed with respect to the governance of reporting issuers, including requirements relating to,

(a) the composition of its board of directors and qualifications for membership on the board, including matters respecting the independence of members;

(b) the establishment of specified types of committees of the board of directors, the mandate, functioning and responsibilities of each committee, the composition of each committee and the qualifications for membership on the committee, including matters respecting the independence of members;

(c) the establishment and enforcement of a code of business conduct and ethics applicable to its directors, officers and employees and applicable to persons or companies that are in a special relationship with the reporting issuer, including the minimum requirements for such a code; and

(d) procedures to regulate conflicts of interest between the interests of the reporting issuer and those of a director or officer of the issuer.

Oversight, etc., of investment funds

121.4 (1) If required to do so by the regulations, an investment fund shall establish and maintain a body for the purposes of overseeing activities of the investment fund and the investment fund manager, reviewing or approving prescribed matters affecting the investment fund, including transactions referred to in section 121.1, and disclosing information to security holders of the fund, to the investment fund manager and to the Commission.

Same

(2) The body has such powers and duties as may be prescribed.

8. Subsection 127 (1) of the Act is amended by adding the following paragraphs:

2.1 An order that acquisition of any securities by a particular person or company is prohibited, permanently or for the period specified in the order.

. . . . .

8.1 An order that a person resign one or more positions that the persons holds as a director or officer of a registrant.

8.2 An order that a person is prohibited from becoming or acting as a director or officer of a registrant.

8.3 An order that a person resign one or more positions that the person holds as a director or officer of an investment fund manager.

8.4 An order that a person is prohibited from becoming or acting as a director or officer of an investment fund manager.

8.5 An order that a person or company is prohibited from becoming or acting as a registrant, as an investment fund manager or as a promoter.

9. (1) Paragraph 26 of subsection 143 (1) of the Act is amended by adding at the end "prescribing activities for the purposes of clause (g) of the definition of "solicit" and "solicitation" in section 84 and prescribing circumstances for the purposes of clause 86 (2) (a.1)".

(2) Subsection 143 (1) of the Act is amended by adding the following paragraphs:

56.1 Prescribing requirements with respect to the governance of reporting issuers for the purposes of section 121.3.

. . . . .

62. Requiring investment funds to establish and maintain a body for the purposes described in subsection 121.4 (1), prescribing its powers and duties and prescribing requirements relating to,

i. the mandate and functioning of the body,

ii. the composition of the body and qualifications for membership on the body, including matters respecting the independence of members, and the process for selecting the members,

iii. the standard of care that applies to members of the body when exercising their powers, performing their duties and carrying out their responsibilities,

iv. the disclosure of information to security holders of the investment fund, to the investment fund manager and to the Commission, and

v. matters affecting the investment fund that require review by the body or the approval of the body.

(3) Subsection 143 (6) of the Act is repealed and the following substituted:

Incorporation by reference

(6) A regulation or rule may incorporate by reference, and require compliance with, one or more provisions of an Act or regulation and all or part of any standard, procedure or guideline.

Commencement

10. (1) Subject to subsection (2), this Schedule comes into force on the day the Budget Measures Act, 2005 (No. 2) receives Royal Assent.

Same

(2) Section 2 comes into force on a day to be named by proclamation of the Lieutenant Governor.

SCHEDULE 21
TEACHERS' PENSION ACT

1. Subsection 2 (4) of the Teachers' Pension Act is amended,

(a) by striking out "the Minister of Education and Training" and substituting "the Minister of Education"; and

(b) by striking out "the Pension Commission of Ontario" and substituting "the Superintendent of Financial Services".

2. (1) Subsection 5 (1) of the Act is amended by striking out "the Minister of Education and Training" and substituting "the Minister of Education".

(2) Subsection 5 (1.1) of the Act is amended by striking out "the Minister of Education and Training" and substituting "the Minister of Education".

(3) Subsection 5 (1.2) of the Act is amended by striking out "the Minister of Education and Training" and substituting "the Minister of Education".

(4) Subsection 5 (7) of the Act is amended by striking out "the Minister of Education and Training" and substituting "the Minister of Education".

3. Subsection 8 (2) of the Act is amended by striking out "the Minister of Education and Training" and substituting "the Minister of Education".

4. (1) Subsection 10 (1) of the Act is amended by striking out "The Minister of Education and Training" at the beginning and substituting "The Minister of Education".

(2) Subsection 10 (2) of the Act is amended by striking out "the Pension Commission of Ontario" and substituting "the Superintendent of Financial Services".

5. (1) Subsection 11 (1) of the Act is amended by striking out "The Minister of Education and Training" at the beginning and substituting "The Minister of Education".

(2) Subsection 11 (2) of the Act is amended by striking out "the Pension Commission of Ontario" and substituting "the Superintendent of Financial Services".

6. (1) Subsection 12.1 (1) of the Act is repealed.

(2) Subsection 12.1 (2) of the Act is repealed.

(3) Subsection 12.1 (3) of the Act is repealed.

(4) Subsection 12.1 (4) of the Act is repealed.

7. Section 12.2 of the Act is repealed.

Commencement

8. (1) Subject to subsections (2) and (3), this Schedule comes into force on the day the Budget Measures Act, 2005 (No. 2) receives Royal Assent.

Same

(2) Subsection 6 (4) comes into force on a day to be named by proclamation of the Lieutenant Governor.

Same

(3) Subsections 6 (1), (2) and (3) and section 7 come into force on a day to be named by proclamation of the Lieutenant Governor and, upon being proclaimed into force, each of those provisions shall be deemed to have come into force on December 31, 2004.

SCHEDULE 22
TOBACCO TAX ACT

1. Section 19 of the Tobacco Tax Act is amended by adding the following subsection:

Waiver, transitional

(3.2.4) Despite subsection (3.1), if, before December 16, 2004, a person provided the Minister with a written waiver of the time limit, the Minister may assess or reassess the person at any time in respect of the period to which the waiver applies, and subsections (3.2.2) and (3.2.3) apply with necessary modifications in respect of the waiver.

Commencement

2. (1) Subject to subsection (2), this Schedule comes into force on the day the Budget Measures Act, 2005 (No. 2) receives Royal Assent.

Same

(2) Section 1 shall be deemed to have come into force on December 16, 2004.

SCHEDULE 23
TORONTO WATERFRONT REVITALIZATION CORPORATION ACT, 2002

1. Subsections 4 (2) and (3) of the Toronto Waterfront Revitalization Corporation Act, 2002 are repealed and the following substituted:

Restriction re Her Majesty in right of Canada

(2) The Corporation does not have the capacity to act as an agent of Her Majesty in right of Canada and shall not conduct itself so as to create, or purport to create, an agency relationship with Her Majesty in right of Canada.

Restriction re Her Majesty in right of Ontario

(3) The Corporation does not have the capacity to act as an agent of Her Majesty in right of Ontario unless the provincial government gives express written authorization to the Corporation to do so, and the Corporation shall not conduct itself so as to create, or purport to create, an agency relationship with Her Majesty in right of Ontario except in accordance with such a written authorization.

Restriction re City of Toronto

(3.1) The Corporation does not have the capacity to act as an agent of the City of Toronto unless city council gives express written authorization to the Corporation to do so, and the Corporation shall not conduct itself so as to create, or purport to create, an agency relationship with the City except in accordance with such a written authorization.

Written authorization

(3.2) Any written authorization given by the provincial government or by city council may impose conditions and restrictions.

2. Subsection 5 (2) of the Act is repealed and the following substituted:

Eligibility restriction

(2) A person is not eligible to hold office as a board member if he or she holds a public office to which he or she is elected, except as follows:

1. One member appointed under paragraph 2 of subsection (1) may be a person who holds a public office to which he or she is elected.

2. One member appointed under paragraph 3 of subsection (1) may be a person who holds a public office to which he or she is elected.

Same

(2.1) A person is not eligible to hold office as a board member if he or she is an employee of Her Majesty in right of Canada or an agency of Her Majesty in right of Canada, an employee of Her Majesty in right of Ontario or an agency of Her Majesty in right of Ontario or an employee of the City of Toronto or a local board of the City.

Commencement

3. This Schedule comes into force on the day the Budget Measures Act, 2005 (No. 2) receives Royal Assent.

EXPLANATORY NOTE

This Explanatory Note was written as a reader's aid to Bill 18 and does not form part of the law. Bill 18 has been enacted as Chapter 31 of the Statutes of Ontario, 2005.

The Bill implements measures contained in the 2005 Ontario Budget and amends various Acts. The major elements of the Bill are described below.

SCHEDULE 1
AMBULANCE ACT

The Ambulance Act is amended to provide that one or more corporations without share capital may be designated as having the powers and responsibilities of a base hospital.

SCHEDULE 2
AUTOMOBILE INSURANCE RATE
STABILIZATION ACT, 2003

The definition of "automobile insurance" in section 1 of the Automobile Insurance Rate Stabilization Act, 2003 refers to the definition of that term in section 1 of the Insurance Act which is being repealed. The amendment to the definition is a technical amendment to ensure that the term "automobile insurance" for the purposes of the Act continues to have the same meaning as in the Insurance Act.

SCHEDULE 3
COMMUNITY SMALL BUSINESS
INVESTMENT FUNDS ACT

Sections 4 and 5 of the Community Small Business Investment Funds Act are amended retroactively to provide that the deadline for applying for registration of new employee ownership labour sponsored venture capital corporations was August 29, 2005.

Tax credits for investments in labour sponsored investment funds are being phased out after 2008, with no tax credit available after 2010. Sections 16.1 and 25 of the Act are amended to reflect the phasing out of the tax credits.

Section 27.1 of the Act is amended to authorize the Minister of Finance to make regulations prescribing rules that apply if a labour sponsored investment fund corporation winds up.

Section 14.1 of the Act currently provides that the shareholder of a labour sponsored investment fund corporation must pay a tax calculated under that section if the shares are redeemed, acquired or cancelled by the corporation less than eight years after the shares are issued. Subsection 45 (1) of the Act is amended to permit regulations to be made to reduce the eight-year minimum period in circumstances prescribed in the regulations.

Part III of the Act currently provides rules limiting the size of businesses in which labour sponsored investment funds may invest. Subsection 45 (1) of the Act is amended to permit regulations to be made to permit investments in prescribed circumstances in businesses that once qualified but no longer qualify as eligible businesses.

Section 21 of the Act currently provides that an eligible investment is deemed to remain an eligible investment for 12 months after it otherwise ceases to be eligible. Subsection 45 (1) of the Act is amended to permit the 12-month limit to be enlarged in prescribed circumstances.

Subsection 45 (5) of the Act is enacted to provide that any regulation made under the Act may have general application or may apply only in a particular case.

SCHEDULE 4
COMPULSORY AUTOMOBILE INSURANCE ACT

The definition of "lessee" in the Compulsory Automobile Insurance Act is re-enacted to clarify that a lessee of a motor vehicle is a person who either leases or rents the motor vehicle for at least 30 days.

SCHEDULE 5
CORPORATIONS TAX ACT

The amendment to subsection 1 (2) and the enactment of section 56.1 of the Corporations Tax Act adopt the tax shelter rules in the Income Tax Act (Canada) as they relate to corporations. Under these rules, no amount may be deducted or claimed by a corporation in respect of a tax shelter unless the corporation files an information return regarding the tax shelter with the Minister of National Revenue. In addition, a corporation must reduce the amount of any expenditure that is a tax shelter investment or that is the cost or capital cost of a tax shelter investment by amounts for which the corporation is not fully at risk. This reduction applies equally to the amount of any expenditure of a corporation where an interest in the corporation is a tax shelter investment.

For those corporations that previously filed their Ontario tax returns or an Ontario notice of objection for a taxation year on the basis that the federal tax shelter rules already applied in Ontario, the amendment to subsection 1 (2) and the enactment of section 56.1 of the Act generally apply to property acquired after November 30, 1994 and to outlays and expenses made or incurred after that day. The rules will apply prospectively to those corporations that filed prior Ontario tax returns or notices of objection on the basis that the tax shelter rules did not apply in Ontario.

The amendments to section 5 of the Act retroactively extend the general anti-avoidance provisions in the Act to transactions involving the misuse or abuse of regulations made under the Act, a Tax Convention or Treaty with a foreign country or any other legislation relevant in computing tax. These amendments are consistent with recent retroactive changes to the general anti-avoidance provisions in the Income Tax Act (Canada). The enactment of subsection 5 (1.1) of the Act clarifies the application of the section. The amendment to section 5.4 of the Act is a technical wording change required as a result of amendments to the federal Act and is retroactive to January 1, 1998.

The amendment to subsection 34 (1.1) of the Act adopts the rules in the Income Tax Act (Canada) that restrict the deductibility of charitable donations of a corporation where there is an acquisition of control of the corporation. These rules provide that unused charitable donation deductions of a corporation are deductible only for taxation years that end before the time that control of the corporation is acquired. In addition, the rules deny a charitable donation deduction in respect of a gift in certain circumstances where control of a corporation is acquired before a donation of property by the corporation, but in contemplation of that gift being made. The amendment is applicable to gifts made after March 22, 2004.

The amendment to clause 37 (5) (a) of the Act is to correct technical wording.

Section 43.4 of the Act provides for a co-operative education tax credit. Currently, under that section and section 112 of the Act, the Lieutenant Governor in Council and the Minister each have authority to make regulations with respect to different matters for the purposes of section 43.4 of the Act. The amendments to section 43.4 and the repeal of clause 112 (1) (g.3) of the Act transfer to the Minister of Finance from the Lieutenant Governor in Council the authority to make regulations for the purposes of section 43.4 of the Act.

Section 43.7 of the Act provides for a book publishing tax credit. The amendment to the definition of "eligible Canadian author" retroactively removes the requirement that the author be a party to the publishing agreement for his or her literary work. The repeal of the definition of "eligible category of writing" and the enactment of subsection 43.7 (16.1) of the Act expand the categories of children's books from one to four categories for books published after May 11, 2005. The enactment of subsection 43.7 (16.2) of the Act provides that in determining if an author is an eligible Canadian author of children's books, the number of children's books previously published by the author in each category shall be determined based on the number of children's books in each of the four new categories, irrespective of when the book was published.

Sections 43.7 and 43.12 of the Act currently refer to the Minister of Citizenship, Culture and Recreation. Those sections are amended to change the references to the Minister of Culture and to add a reference to the Ontario Media Development Corporation. Section 43.11 of the Act currently refers to the Minister of Citizenship, Culture and Recreation and the Ontario Film Development Corporation. That section is amended to change the references to the Minister of Culture and the Ontario Media Development Corporation.

Section 43.13 of the Act provides for an apprenticeship training tax credit, not to exceed $5,000 per year for the first 36 months an apprentice is in a qualifying apprenticeship program. The amendment to subsection 43.13 (3) of the Act ensures that the $5,000 limit is pro-rated for the year in which the apprentice completes his or her first 36 months in the program. The re-enactment of subsection 43.13 (9) and the enactment of subsection 43.13 (13.1) of the Act permit a corporation to also qualify for the tax credit if the apprentice is employed and paid by an employment agency while carrying out his or her qualifying apprenticeship with the corporation. These amendments are retroactive to December 16, 2004.

The enactment of subsection 43.13 (13.2) of the Act prohibits a corporation from claiming both the co-operative education tax credit and the apprenticeship training tax credit in respect of the same expenditures.

Subsection 57.9.1 of the Act allows a Canadian subsidiary of a foreign bank to transfer to its parent company assets on a tax-deferred basis and unused corporate minimum tax credits and losses. To obtain the benefit of this provision, an election must be filed within the time limits set out in subsections 57.9.1 (4) and (5) of the Act. These subsections are amended to specify that the election must be filed before the later of December 31, 2005 and the earliest of the days described in clauses 57.9.1 (4) (b) and (5) (b).

Sections 84 and 85 of the Act set out procedures for objecting to and appealing from tax assessments and determinations. The amendments to these sections parallel federal amendments that restrict the matters to which a corporation may object or appeal in certain cases to those matters that gave rise to the assessment or determination.

SCHEDULE 6
ELECTRICITY ACT, 1998

The enactment of subsection 92.1 (2.1) of the Electricity Act, 1998 ensures that tax payable under section 92.1 of the Act by the owner of a hydro-electric generating station located in unorganized territory without a school board is paid to the Province and not to the Financial Corporation.

Section 94 of the Act imposes a transfer tax in respect of the transfer of certain municipal electricity property. The amendment to subsection 94 (5) of the Act is a technical wording change to ensure that amounts deductible from the transfer tax under paragraph 4 of subsection 94 (3) of the Act are also subject to the rule in subsection 94 (5) of the Act that prohibits more than one municipal corporation or municipal electricity utility from deducting the same amount. The amendment is retroactive to November 7, 1998 to coincide with the day that paragraph 4 of subsection 94 (3) of the Act came into force.

Subsections 94 (9) and (9.1) and clause 96 (1) (e.4) of the Act are repealed. Subsection 94 (9) of the Act currently provides that a transfer of certain municipal electricity property by a municipal corporation or municipal electricity utility is void unless, before the transfer, the transfer tax imposed under section 94 of the Act is paid or security for the tax is provided. Subsection 94 (9.1) and clause 96 (1) (e.4) of the Act currently provide for exceptions to the rule in subsection 94 (9) of the Act if prescribed conditions are satisfied. (No conditions have been prescribed.) The repeal of subsections 94 (9) and (9.1) of the Act is retroactive to the dates they originally came into force.

SCHEDULE 7
FUEL TAX ACT

Currently, subsection 2 (1) of the Fuel Tax Act imposes a tax on clear fuel used by a purchaser to generate power in a motor vehicle other than certain railway vehicles. The reference in the subsection to the generation of power in a motor vehicle is repealed to clarify the application of tax in respect of clear fuel. Other technical amendments are made, and spent provisions are repealed.

Currently, under subsection 9 (3) of the Act, the Minister may suspend or cancel a designation, permit or registration under the Act relating to a person if the person contravenes or permits the contravention of the Act or of a limitation attached to the designation, permit or registration. The re-enactment of the subsection amends and expands the grounds on which a suspension or cancellation may be made, to parallel the grounds on which the Minister may refuse to designate or register a person or issue a permit under the Act.

Subsection 13 (10.2) of the Act, which came into force on December 16, 2004, permits the Minister of Finance to assess or reassess a person under the Act after the expiry of the time limit for issuing an assessment if, before the expiry of the time limit, the person has filed a waiver in a form approved by the Minister. The enactment of subsection 13 (10.5) of the Act permits the Minister to assess or reassess a person after the time limit if, before December 16, 2004, the person provided the Minister with a written waiver of the time limit.

The Act permits a refund of fuel tax in respect of the amount of fuel used to power auxiliary equipment attached to a motor vehicle. The amendments to section 21 of the Act provide that no refunds may be made if the auxiliary equipment is used for personal use and authorize the Minister to determine or approve a fuel consumption rating system to be used in calculating the amount of tax to be refunded.

SCHEDULE 8
GASOLINE TAX ACT

Currently, under subsection 7 (3) of the Gasoline Tax Act, the Minister may suspend or cancel a designation or registration under the Act relating to a person if the person contravenes or permits the contravention of the Act or of a limitation attached to the designation or registration. The re-enactment of the subsection amends and expands the grounds on which a suspension or cancellation may be made, to parallel the grounds on which the Minister may refuse to designate or register a person under the Act.

Subsection 11 (5.1.1) of the Act, which came into force on December 16, 2004, permits the Minister of Finance to assess or reassess a person under the Act after the expiry of the time limit for issuing an assessment if, before the expiry of the time limit, the person has filed a waiver in a form approved by the Minister. The enactment of subsection 11 (5.1.4) of the Act permits the Minister to assess or reassess a person after the time limit if, before December 16, 2004, the person provided the Minister with a written waiver of the time limit.

The enactment of clause 33 (2) (c.1) of the Act authorizes the use of a gasoline consumption rating system approved by the Minister in calculating the amount of tax to be refunded in respect of gasoline used to power auxiliary equipment.

SCHEDULE 9
GO TRANSIT ACT, 2001

Subsection 35 (1.1) of the GO Transit Act, 2001 continues in force, until the end of 2005, municipal development charge by-laws in respect of GO Transit's capital costs that would have expired on December 31, 2003. Subsection 35 (1.1) of the Act is amended to continue those by-laws in force until the end of 2006 unless they are repealed earlier.

SCHEDULE 10
HIGHWAY TRAFFIC ACT

Part XI of the Highway Traffic Act is amended to make a lessee of a motor vehicle or street car that has consented to its use by another person liable for any loss or damage caused by its negligent operation.

SCHEDULE 11
INCOME TAX ACT

Section 3 of the Income Tax Act imposes a surtax calculated by reference to an individual's gross tax amount for the year. The re-enactment of clause 3 (2) (a) and the amendments to section 4.6 of the Act ensure that the surtax is imposed in respect of certain lump sum payments in the year to which the lump sum payment is allocated for income tax purposes and not to the year in which the payment is actually received. The amendments are retroactive to January 1, 2000 when section 4.6 came into force. The enactment of subsection 10 (5) permits assessments and reassessments of tax after the normal reassessment periods in order to make adjustments for any previous taxation year affected by these amendments.

Subsection 4 (3.1) of the Act provides for various non-refundable tax credits that are deductible in calculating the amount of Ontario income tax payable by an individual for a year. The amendments to section 4 and the enactment of subsections 4.0.1 (26) to (29) of the Act add a credit for adoption expenses to follow the proposed federal tax credit for adoption expenses.

Subsection 4.0.1 (23.1) of the Act provides for the calculation of an individual's medical expense tax credit. The calculation of the credit currently includes in an individual's medical expenses an amount that is paid by the individual for medical expenses in respect of a dependant who is not the individual's spouse or common-law partner or a child under 18 years. The amendment to subsection 4.0.1 (23.1) and the enactment of subsection 4.0.1 (23.2) of the Act increase the maximum amount that may be included to $10,000 to follow proposed federal amendments. Consequential amendments are made to section 4.0.2 of the Act.

The re-enactment of subsection 8 (3.1) and the enactment of subsection 8 (3.2) of the Act ensure that the property and sales tax credits for a senior who resides with a cohabiting spouse or common-law partner are not reduced for 2005 by reason of cost-of-living increases in the amount of federal Old Age Security and the federal Guaranteed Income Supplement. Consequential amendments are made to subsections 8 (6), (7.1), (7.2), (7.3), (8.1), (12) and (17) of the Act.

Subsection 8 (8.1.1) of the Act sets out the maximum tax credit permitted for a taxation year in respect of investments made in labour sponsored investment fund corporations under the Community Small Business Investment Funds Act. The amendments to the subsection provide for a phasing out of the tax credit after 2008 with no tax credit available after 2010.

Section 8.4.5 of the Act provides for an apprenticeship training tax credit, not to exceed $5,000 per year, for the first 36 months an apprentice is in a qualifying apprenticeship program. The amendment to subsection 8.4.5 (3) of the Act ensures that the $5,000 limit is pro-rated for the year in which the apprentice completes his or her first 36 months in the program. The re-enactment of subsection 8.4.5 (8) and the enactment of subsection 8.4.5 (11.1) of the Act permit a taxpayer to also qualify for the tax credit if the apprentice is employed and paid by an employment agency while carrying out his or her qualifying apprenticeship with the taxpayer.

The enactment of subsection 8.4.5 (11.2) of the Act prohibits a taxpayer from claiming both the co-operative education tax credit and the apprenticeship training tax credit in respect of the same expenditures.

The re-enactment of subsection 8.8 (2) of the Act provides for a technical change in the calculation of interest in respect of a refund under section 8.7 of the Act relating to an Ontario research employee stock option tax overpayment.

SCHEDULE 12
INSURANCE ACT

The amendments to the Insurance Act limit the liability of a lessor of a motor vehicle when the vehicle is in the lessee's control at the time of a motor vehicle accident. The limitation does not apply to vehicles used as taxicabs, limousines for hire or livery vehicles or in certain other cases. The amendments also provide that the insurance policy of the lessee of the vehicle responds in the case of an accident before the policy of the lessor, even if the vehicle was loaned by the lessee to another person who was driving when the accident occurred.

SCHEDULE 13
LAND TRANSFER TAX ACT

Subsection 12 (4.1) of the Land Transfer Tax Act, which came into force on December 16, 2004, permits the Minister of Finance to assess or reassess a person under the Act after the expiry of the time limit for issuing an assessment if, before the expiry of the time limit, the person has filed a waiver in a form approved by the Minister. The enactment of subsection 12 (4.4) of the Act permits the Minister to assess or reassess a person after the time limit if, before December 16, 2004, the person provided the Minister with a written waiver of the time limit.

SCHEDULE 14
MANAGEMENT BOARD OF CABINET ACT

The Management Board of Cabinet Act is amended to allow the Board to delegate to any member of the Executive Council, or to any person employed in the public service, any power, duty or function of the Board, subject to such limitations and requirements as the Board may specify.

SCHEDULE 15
MINISTRY OF REVENUE ACT

The statutes administered by the Minister of Finance require various documents and information to be sent to or by the Minister by mail or registered mail. The enactment of section 16 of the Ministry of Revenue Act authorizes the Minister of Finance to approve one or more alternative means for sending documents or information otherwise required to be mailed or for sending information otherwise required to be provided in a prescribed or approved form.

The enactment of section 17 of the Act authorizes the Minister to require certain persons to send or receive documents and information or make or receive payments under the statutes administered by the Minister by electronic or other means specified by the Minister.

The enactment of section 18 of the Act authorizes the Minister to require a person to maintain in a form specified by the Minister any books or records required to be maintained under an Act or regulation administered by the Minister. In addition, the Minister may dispense with any existing statutory requirements relating to the period of time books and records are required to be kept for the purposes of an Act administered by the Minister and the form in which books and records are to be kept.

SCHEDULE 16
MORTGAGE BROKERS ACT

Sections 7.1 to 7.8 of the Mortgage Brokers Act establish disclosure requirements concerning the cost of borrowing. Those sections of the Act have not yet been proclaimed into force. Technical amendments are made.

SCHEDULE 17
MUNICIPAL ACT, 2001

Technical amendments are made to section 365.1 of the Municipal Act, 2001, which governs property tax assistance for eligible property during development and rehabilitation periods. ("Eligible property", "development period" and "rehabilitation period" are currently defined in subsection 365.1 (1) of the Act.) Currently, the rehabilitation period for an eligible property begins when tax assistance begins to be provided. An amendment to the definition of rehabilitation period specifies that the rehabilitation period begins when the by-law authorizing the tax assistance is passed.

Currently, under subsections 365.1 (2) and (3) of the Act, separate by-laws are required to provide tax assistance for the development period and for the rehabilitation period. Those subsections are repealed, and a new subsection 365.1 (2) permits municipalities to use a single by-law to provide tax assistance during both periods. Consequential amendments are made throughout the section.

SCHEDULE 18
PENSION BENEFITS ACT

Amendments to the Pension Benefits Act establish a new class of pension plan, the jointly sponsored pension plan. The characteristics of jointly sponsored pension plans are set out in the new subsection 1 (2) of the Act. Pension plans may also be prescribed by regulation to be jointly sponsored pension plans.

Definitions relating to jointly sponsored pension plans are added to section 1 of the Act. Amendments are also made to section 10, concerning the contents of the documents that create and support jointly sponsored pension plans, to section 34, concerning the establishment of separate jointly sponsored pension plans for part-time employees and to sections 40 and 74, concerning the requirement for the administrator's consent where this consent is an eligibility requirement for plan members to receive ancillary benefits. Amendments to sections 68 and 75, as well as the new section 75.1, govern the winding up of jointly sponsored pension plans in whole or in part. An amendment to section 115 provides that regulations relating to jointly sponsored pension plans may be made retroactive to December 31, 2004. The authority to make retroactive regulations is itself repealed on January 1, 2007.

Currently, section 8 of the Act specifies the persons and entities who are eligible to act as the administrator of a pension plan. An amendment to clause 8 (1) (f) provides that the administrator may also be a corporation that is made responsible by an Act of the Legislature for the administration of the pension plan. The regulations may prescribe additional persons and entities to be eligible to act as the administrator.

Currently, section 55 of the Act governs the funding of pension plans and the obligation of employers to make contributions. The new subsection 55 (3) governs the obligation of members of pension plans that provide contributory benefits to make contributions. The new subsection 55 (4) governs the obligation of members of jointly sponsored pension plans to make contributions, including contributions in respect of any going concern unfunded liability and solvency deficiency. Technical amendments are made to subsection 55 (2).

Currently, section 56.1 of the Act requires the administrator of a pension plan to give certain information to the trustee of the pension fund. An amendment provides an exemption for an administrator who is also the trustee of the pension fund.

SCHEDULE 19
RETAIL SALES TAX ACT

The definitions of "insurance" and "insurer" in subsection 1 (1) of the Retail Sales Tax Act are re-enacted to remove cross-references to the Insurance Act.

Subsection 2 (8) of the Act deals with the application of subsection 2 (7) of the Act in 1988. Subsection 2 (8) is repealed because it is spent.

The enactment of section 2.0.2 of the Act permits the Minister of Finance to establish a program under which retail sales tax would be calculated and collected at the rate of 6 per cent of the fair value of a computer service contract under which both taxable services and non-taxable services are sold for a single price. A consequential amendment is made to subsection 43 (8) of the Act.

The re-enactment of paragraph 26 of subsection 7 (1) of the Act extends the current exemption from tax for child car seats to "booster seats" for children, commencing September 1, 2005.

Subsections 18 (3.0.3) and 20 (5.1) of the Act, which came into force on December 16, 2004, permit the Minister of Finance to assess or reassess a person under the Act after the expiry of the time limit for issuing an assessment if, before the expiry of the time limit, the person has filed a waiver in a form approved by the Minister. The enactment of subsections 18 (3.0.6) and 20 (5.3.1) of the Act permits the Minister to assess or reassess a person after the time limit if, before December 16, 2004, the person provided the Minister with a written waiver of the time limit.

The enactment of clause 48 (3) (t) of the Act permits the Minister of Finance to make regulations determining the basis and method of calculating, paying, collecting and accounting for tax in respect of the consumption or use of returnable containers acquired anywhere in Canada but refilled in Ontario.

SCHEDULE 20
SECURITIES ACT

The Securities Act is amended as follows:

Governance:

Under a new Part XXI.1 of the Act, reporting issuers are required to comply with such requirements respecting governance as may be prescribed by regulation or by rules of the Commission. This obligation is set out in the new section 121.3 of the Act. Related amendments are made to subsection 143 (1) of the Act.

Under the new Part, investment funds may be required to establish and maintain a body for the purposes of overseeing activities of the investment fund and the investment fund manager, reviewing or approving prescribed matters affecting the investment fund and disclosing information to security holders, the investment fund manager and the Commission. This requirement may be imposed by regulation or by rules of the Commission. This obligation is set out in the new section 121.4 of the Act. Related amendments are made to subsection 143 (1) of the Act. Under the new section 121.1 of the Act, a prohibition under Part XXI of the Act (Insider Trading and Self-Dealing) does not apply to a transaction approved by this body, if the regulations or rules provide for this approval.

Clearing agencies:

Currently, section 21.2 of the Act provides for the recognition of a clearing agency by the Commission. The new subsection 21.2 (0.1) of the Act prohibits a person or company from carrying on business in Ontario as a clearing agency unless the person or company is a recognized clearing agency. Under the new subsection 21.2 (3) of the Act, the Commission is authorized to make specified types of decisions with respect to a recognized clearing agency, if the Commission considers it to be in the public interest to do so. A related amendment is made to section 21.8 of the Act, concerning the appointment of an auditor for a recognized clearing agency.

Proxy solicitation requirements:

An amendment to section 84 of the Act provides that such activities as may be prescribed by regulation or by rules of the Commission are excluded from the definition of "solicit" and "solicitation". Under subsection 86 (2) as amended, regulations or rules may specify circumstances in which persons or companies are exempt from the requirement to send an information circular to security holders whose proxies are being solicited. Related amendments are made to subsection 143 (1) of the Act.

Authority to make enforcement orders:

Currently, subsection 127 (1) of the Act authorizes the Commission to make specified types of enforcement orders if the Commission is of the opinion that the order is in the public interest. An amendment to that subsection authorizes the Commission to make the additional types of enforcement orders described in the amendment.

Other matters:

The new section 3.10 of the Act empowers a standing or select committee of the Assembly to review the Commission's annual report and to report the committee's opinions and recommendations to the Assembly. A technical amendment is made to subsection 143 (6) of the Act concerning regulations and rules.

SCHEDULE 21
TEACHERS' PENSION ACT

Currently, sections 12.1 and 12.2 of the Teachers' Pension Act create special rules relating to any going concern valuation or solvency valuation of the Ontario Teachers' Pension Plan. Those special rules replace the requirements of the Pension Benefits Act that would otherwise apply. The provisions creating those special rules are repealed. Related amendments to the Pension Benefits Act are being made in Schedule 18 to the Bill.

Currently, the Teachers' Pension Act specifies that certain documents are to be filed with the Pension Commission of Ontario. Amendments to the Act reflect the current requirements of the Pension Benefits Act which specify that such documents are to be filed with the Superintendent of Financial Services.

References in the Teachers' Pension Act to the Minister of Education and Training are replaced with references to the Minister of Education.

SCHEDULE 22
TOBACCO TAX ACT

Subsection 19 (3.2.1) of the Tobacco Tax Act, which came into force on December 16, 2004, permits the Minister of Finance to assess or reassess a person under the Act after the expiry of the time limit for issuing an assessment if, before the expiry of the time limit, the person has filed a waiver in a form approved by the Minister. The enactment of subsection 19 (3.2.4) of the Act permits the Minister to assess or reassess a person after the time limit if, before December 16, 2004, the person provided the Minister with a written waiver of the time limit.

SCHEDULE 23
TORONTO WATERFRONT REVITALIZATION CORPORATION ACT, 2002

Currently, subsections 4 (2) and (3) of the Toronto Waterfront Revitalization Corporation Act, 2002 specify that the Corporation cannot act as an agent of Her Majesty in right of Canada, Her Majesty in right of Ontario or the City of Toronto, and the Corporation is prohibited from conducting itself so as to create, or purport to create, such an agency relationship. An amendment permits the provincial government to give written authorization to the Corporation to act as an agent of Her Majesty in right of Ontario. City council is also permitted to give written authorization to the Corporation to act as an agent of the City of Toronto.

Currently, subsection 5 (2) of the Act specifies that a person who holds a public office to which he or she is elected is not eligible to be a member of the Corporation's board of directors. An amendment provides that one of the persons appointed to the board by the Lieutenant Governor in Council and one of the persons appointed by the City may be a person who holds a public office to which he or she is elected.

[38] Bill 18 Original (PDF)