Bill 114, Budget Measures and Interim Appropriation Act, 2008 (No. 2)

Bill 114 2008

An Act respecting Budget measures, interim appropriations and other matters, to amend the Ottawa Congress Centre Act and to enact the Ontario Capital Growth Corporation Act, 2008

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

CONTENTS
1. 2. 3. Schedule A Schedule B Schedule C Schedule D Schedule E Schedule F Schedule G Schedule H Schedule I Schedule J Schedule K Schedule L Schedule M Schedule N Schedule O Schedule P Schedule Q Schedule R Schedule S Schedule T Schedule U Schedule V Schedule W	Contents of this Act Commencement Short title Assessment Act Commodity Futures Act Corporations Tax Act Education Act Electricity Act, 1998 Executive Council Act Financial Administration Act Fuel Tax Act Income Tax Act Interim Appropriation for 2009-2010 Act, 2008 Legal Aid Services Act, 1998 Limitations Act, 2002 Local Roads Boards Act Northern Services Boards Act Ontario Capital Growth Corporation Act, 2008 Ottawa Congress Centre Act Provincial Land Tax Act, 2006 Securities Act Social Housing Reform Act, 2000 Supplementary Interim Appropriation Act, 2008 Taxation Act, 2007 Amendments to Various Acts Consequential to the Enactment of the Taxation Act, 2007 Tobacco Tax Act
___________

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 and Interim Appropriation Act, 2008 (No. 2).

Schedule A
assessment Act

   1.  Subsection 2 (2) of the Assessment Act is amended by adding the following clause:

(d.7) prescribing land to which subsection 40 (3) does not apply;

   2.  (1)  Subsection 3 (1) of the Act is amended by adding the following paragraph:

Care homes

    7.  Land that is used as a care home within the meaning of the Residential Tenancies Act, 2006 if the following conditions are satisfied:

            i.  the operator of the care home,

                  A.  is currently operating an approved charitable home for the aged under the Charitable Institutions Act, or

                  B.  on or before January 1, 2004 was operating an approved charitable home for the aged under the Charitable Institutions Act and is currently operating a nursing home under the Nursing Homes Act or a long-term care home under the Long-Term Care Homes Act, 2007,

           ii.  the operator of the care home is a registered charity within the meaning of subsection 248 (1) of the Income Tax Act (Canada), and

          iii.  the land is owned, used and occupied by the care home or, if the land is leased by the care home, it is used and occupied by the care home and would be exempt from taxation if it was occupied by the owner.

This paragraph does not apply to any portion of the land that is occupied by a commercial tenant or that is a self-contained residential unit.

   (2)  Paragraph 20 of subsection 3 (1) of the Act is repealed and the following substituted:

Mineral land and minerals

  20.  The buildings, plant and machinery under mineral land and the machinery in or on the land only to the extent and in the proportion that the buildings, plant and machinery are used for obtaining minerals from the ground, and all minerals that are in, on or under land.

   (3)  Subsection 3 (1) of the Act is amended by adding the following paragraph:

Additional residential units for seniors

22.1 A structure erected or placed on land that is a garden suite within the meaning of the Planning Act, if the following conditions are satisfied:

            i.  a by-law or order under the Planning Act provides that the use of the garden suite is temporary,

           ii.  the garden suite is used as the personal residence of a person who is at least 65 years of age, and

          iii.  the landowner also has his or her personal residence on the land and is a family member of the person described in subparagraph ii.

   3.  Section 19.1 of the Act is amended by adding the following subsections:

Assessment corporation to make adjustment

   (5)  If a change is made to the current value of land other than a change resulting from a general reassessment, the assessment corporation shall make any adjustments required under this section.

Adjustment for arithmetical error

   (6)  If, at any time during a taxation year, the assessment corporation determines that there has been an arithmetical error in an adjustment under this section for the year or a subsequent taxation year, the corporation shall make an adjustment to correct the error.

Notice of adjustment

   (7)  If an adjustment is made under subsection (5) or (6) and no notice showing the adjustment is otherwise given under this Act, the assessment corporation shall notify the person against whom the land is assessed and the municipality within 90 days of making the adjustment.

Exception

   (8)  Sections 39.1 and 40 do not apply to a notice given under subsection (7).

   4.  Section 31 of the Act is amended by adding the following subsection:

Exception

   (1.0.1)  Subsection (1) does not apply where the only change is an adjustment made under section 19.1.

   5.  (1)  Subsection 32 (1) of the Act is amended by striking out "any notice provided for by section 31" and substituting "any notice provided for under this Act".

   (2)  Subsection 32 (1.1) of the Act is amended by striking out "any notice provided for by section 31" in the portion before paragraph 1 and substituting "any notice provided for under this Act".

   (3)  Subsection 32 (2) of the Act is amended by striking out the portion before paragraph 1 and substituting the following:

Change in classification

   (2)  The following rules apply if, as a result of a change in the regulations made under this Act or the Education Act, the classification of land is changed and taxes have been levied on the land that exceed the amount of taxes that would have been levied on the land if it had been classified in accordance with the change in the regulations:

.     .     .     .     .

   (4)  Subsection 32 (3) of the Act is amended by striking out "for the current year or for all or part of the preceding year" at the end of the portion before paragraph 1.

   (5)  Subsection 32 (4) of the Act is amended by striking out "for the current year or for all or part of the preceding year" in the portion before paragraph 1.

   (6)  Subsection 32 (5) of the Act is repealed.

   6.  Subsection 39 (1) of the Act is amended by adding "or a local roads area under the Local Roads Boards Act" after "the assessment roll for a locality".

   7.  (1)  Subsection 39.1 (1) of the Act is repealed and the following substituted:

Reconsideration of assessment

   (1)  For 2009 and subsequent taxation years, the owner of a property or a person who has received or would be entitled to receive a notice of assessment under this Act may request the assessment corporation to reconsider the following matters no later than March 31 of the taxation year in respect of which the request is made:

    1.  Any matter that could form the basis of an appeal under subsection 40 (1).

    2.  Any matter that could form the basis of an application under section 46.

   (2)  Subsection 39.1 (3) of the Act is amended by adding "or March 31 of the taxation year, whichever is later" at the end.

   8.  (1)  Subsection 40 (8) of the Act is amended by adding "or March 31 of the taxation year, whichever is later" at the end.

   (2)  Subsection 40 (12) of the Act is repealed.

   (3)  Clauses 40 (26) (a) and (b) of the Act are repealed and the following substituted:

  (a)  in relation to the assessments under sections 32, 33 and 34 for the year; and

  (b)  in relation to the assessment, including assessments under sections 32, 33 and 34, for a subsequent taxation year to which the same general reassessment applies, if the appeal is not finally disposed of before March 31 of the subsequent taxation year or, if an assessment has been made under section 32, 33 or 34, before the 90th day after the notice of assessment was mailed.

Commencement

   9.  (1)  Subject to subsections (2) and (3), this Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2008 (No. 2) receives Royal Assent.

Same

   (2)  Subsections 2 (1) and (2) are deemed to have come into force on January 1, 2004.

Same

   (3)  Subsection 2 (3) is deemed to have come into force on January 1, 2005.

Schedule b
Commodity Futures Act

   1.  Section 60 of the Commodity Futures Act is amended by adding the following subsection:

Inter-jurisdictional enforcement

   (9)  Without limiting the generality of subsections (1) and (4), an order may be made under subsection (1) or (4) in respect of a person or company if any of the following circumstances exist:

    1.  The person or company has been convicted in any jurisdiction of an offence arising from a transaction, business or course of conduct related to commodities or contracts.

    2.  The person or company has been convicted in any jurisdiction of an offence under a law respecting the buying or selling of commodities or contracts.

    3.  The person or company has been found by a court in any jurisdiction to have contravened the laws of the jurisdiction respecting the buying or selling of commodities or contracts.

    4.  The person or company is subject to an order imposing sanctions, conditions, restrictions or requirements on the person or company that is made by an authority in any jurisdiction responsible for the regulation of commodities and contracts.

    5.  The person or company has agreed with an authority in any jurisdiction responsible for the regulation of commodities and contracts that the person or company be made subject to sanctions, conditions, restrictions or requirements.

Commencement

   2.  This Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2008 (No. 2) receives Royal Assent.

Schedule c
corporations Tax Act

   1.  (1)  Subsection 43.3 (3.2) of the Corporations Tax Act is amended by striking out the portion before the formula and substituting the following:

Expenditure limit, taxation year ending after May 4, 1999 and before February 26, 2008

   (3.2)  Subject to subsections (3.3) and (3.7), the amount of a corporation's expenditure limit for a taxation year that ends after May 4, 1999 and before February 26, 2008 is the amount that would be determined to be its expenditure limit for the taxation year for the purposes of subsection 127 (10.1) of the Income Tax Act (Canada) if, for the purposes of the definition of "B" in subsection 127 (10.2) of that Act, the business limit of a corporation were considered to be the amount, if any, by which the business limit of the corporation for the taxation year as determined under subsection 41 (3.1) without the application of paragraph 125 (5) (b) of the Income Tax Act (Canada) and this subsection exceeds the amount calculated using the formula,

.     .     .     .     .

   (2)  Section 43.3 of the Act is amended by adding the following subsections:

Expenditure limit, taxation year ending after February 25, 2008

   (3.2.1)  Subject to subsections (3.2.5) and (3.7), the amount of a corporation's expenditure limit for a taxation year ending after February 25, 2008 is the amount calculated using the formula,

($7 million – 10A) ×

in which,

  "A"  is the greater of,

         (a)  $400,000, and

         (b)  the amount that is,

                   (i)  if the corporation is not associated with any other corporation in the taxation year, the corporation's taxable income under the Income Tax Act (Canada) for its immediately preceding taxation year, determined before taking into consideration the specified future tax consequences for that preceding year, or

                  (ii)  if the corporation is associated with one or more corporations in the taxation year, the associated group's taxable income for the corporation's immediately preceding taxation year, as determined under subsection (3.2.2), and

  "B"  is,

         (a)  nil if,

                   (i)  the corporation's taxable capital amount for the immediately preceding taxation year, as determined under subsection (3.2.3), is not more than $25 million and the corporation is not associated with any other corporation in the taxation year, or

                  (ii)  the corporation is associated with one or more corporations in the taxation year and the associated group's taxable capital amount for the preceding taxation year as determined under subsection (3.2.4) is not more than $25 million, or

         (b)  in any other case, the lesser of $25 million and the amount by which the corporation's taxable capital amount for the immediately preceding taxation year or, if the corporation is associated with one or more corporations in the taxation year, the associated group's taxable capital amount for the immediately preceding taxation year exceeds $25 million.

Associated group's taxable income

   (3.2.2)  If a corporation is associated with one or more corporations in a particular taxation year, the associated group's taxable income for the corporation's immediately preceding taxation year is the sum of,

  (a)  the corporation's taxable income under the Income Tax Act (Canada) for its last taxation year ending in the last calendar year that ended before the end of the particular taxation year, determined before taking into consideration the specified future tax consequences for that preceding year; and

  (b)  the sum of all amounts each of which is the taxable income of an associated corporation under the Income Tax Act (Canada) for the associated corporation's last taxation year ending in the last calendar year that ended before the end of the particular taxation year of the corporation referred to in clause (a), determined before taking into consideration the specified future tax consequences for that last taxation year.

Taxable capital amount

   (3.2.3)  A corporation's taxable capital amount for a taxation year is,

  (a)  the corporation's taxable paid-up capital for the year as determined under Part III, if the corporation is a corporation that is not a financial institution as defined in subsection 58 (2), a credit union or an insurance corporation;

  (b)  the corporation's adjusted taxable paid-up capital for the year as determined under Part III, if the corporation is a financial institution as defined in subsection 58 (2), other than a credit union; or

   (c)  the corporation's taxable capital employed in Canada for the year as determined under Part I.3 of the Income Tax Act (Canada), if the corporation is a credit union or an insurance corporation.

Associated group's taxable capital amount

   (3.2.4)  If a corporation is associated with one or more corporations in a particular taxation year, the associated group's taxable capital amount for the immediately preceding taxation year is the sum of,

  (a)  the corporation's taxable capital amount for its last taxation year ending in the last calendar year that ended before the end of the particular taxation year, as determined under subsection (3.2.3); and

  (b)  the sum of all amounts each of which is the taxable capital amount, as determined under subsection (3.2.3), of a corporation with which the corporation is associated in the taxation year, for the associated corporation's last taxation year ending in the last calendar year that ended before the end of the particular taxation year of the corporation referred to in clause (a).

Transitional, February 26, 2008

   (3.2.5)  A corporation's expenditure limit for a taxation year that straddles February 26, 2008 is equal to the amount determined by the formula:

A + [(B – A) × (C/D)]

in which,

  "A"  is the amount that would be determined in respect of the corporation under subsection (3.2) if that subsection applied for the taxation year,

  "B"  is the amount that would be determined in respect of the corporation for the taxation year under subsection (3.2.1) if this subsection did not apply,

  "C"  is the number of days in the taxation year that are after February 25, 2008, and

  "D"  is the number of days in the taxation year.

Application of federal rules

   (3.2.6)  Subsections 127 (10.21), (10.22), (10.23), (10.3), (10.4) and (10.6) of the Income Tax Act (Canada) apply with necessary modifications for the purposes of subsections (3.2.1) and (3.7) and, without limiting the generality of the foregoing, in the application of section 127 of the Income Tax Act (Canada) for the purposes of subsections (3.2.1) and (3.7), a reference to a Canadian-controlled private corporation is deemed to be a reference to a qualifying corporation as defined in subsection (4).

   (3)  Section 43.3 of the Act is amended by adding the following subsection:

Definition

   (17)  In this section,

"associated group" means, in respect of a corporation for a taxation year, the corporation and all corporations associated with the corporation in the taxation year.

   2.  Clause (c) of the definition of "B" in subsection 57.4 (1) of the Act is amended by striking out "and" at the end of subclause (iv), by adding "and" at the end of subclause (v) and by adding the following subclause:

         (vi)  the amount of any gain in respect of a disposition of property by the corporation that is described in subparagraph 38 (a.1) (iii) or paragraph 38 (a.3) of the Income Tax Act (Canada) if the gift to a qualified donee for the purposes of that provision occurs on or after February 26, 2008,

Commencement

   3.  This Schedule is deemed to have come into force on February 26, 2008.

Schedule d
education Act

   1.  The Education Act is amended by adding the following section:

Difference in amounts levied and collected

   257.11.1  (1)  In addition to the amounts payable under subsection 257.11 (1.1), if the amount levied for school purposes under subsection 257.7 (1) is greater than the amount collected by the Minister of Finance, the Minister of Finance shall pay the difference out of the Consolidated Revenue Fund to the levying board.

Payment deemed to be tax levied

   (2)  Any amount paid to a levying board under subsection (1) is deemed to be tax levied under section 2 of the Provincial Land Tax Act, 2006.

Commencement

   2.  This Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2008 (No. 2) receives Royal Assent.

Schedule e
Electricity Act, 1998

   1.  Section 81 of the Electricity Act, 1998 is amended by adding the following subsection:

Extension of time

   (1.1)  The Minister of Finance may extend the time for the Financial Corporation to submit its annual report for a fiscal year to a day that is not later than the day the Public Accounts for the fiscal year are submitted to the Lieutenant Governor in Council in accordance with subsection 13 (3) of the Ministry of Treasury and Economics Act.

Commencement

   2.  This Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2008 (No. 2) receives Royal Assent.

Schedule f
Executive Council Act

   1.  Subsection 2 (1) of the Executive Council Act is repealed and the following substituted:

Appointment of ministers

   (1)  The Lieutenant Governor may appoint under the Great Seal such ministers of the Crown as are provided for under any Act or as the Lieutenant Governor sees fit to appoint, to hold office during pleasure.

   2.  Subsection 7 (2) of the Act is repealed and the following substituted:

Certain absences

   (2)  A day on which a minister is absent from the Chamber is not counted as an absence for the purpose of this section if the Premier is of the opinion that the absence is justified because of,

  (a)  illness, bereavement, a religious holiday or some similar reason; or

  (b)  international travel related to trade or economic development.

Commencement

   3.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2008 (No. 2) receives Royal Assent.

Same

   (2)  Section 2 is deemed to have come into force on October 22, 2008.

Schedule g
Financial Administration Act

   1.  Section 9 of the Financial Administration Act is repealed and the following substituted:

Refunds

Payment of interest

   9.  (1)  If an Act authorizes the refund of an amount received by the Crown, the refund, together with interest on the amount refunded if the interest is also authorized by an Act, is payable out of the Consolidated Revenue Fund.

Refund of money paid in error, etc.

   (2)  A refund or partial refund may be paid out of the Consolidated Revenue Fund of money that was paid to or collected by the Crown if the money was paid or collected in error or for a purpose that is not fulfilled, or if Treasury Board considers it appropriate in the circumstances to make the refund or partial refund.

Treasury Board directives

   (3)  Any refund or partial refund of money under subsection (2) shall be made in accordance with such directives as Treasury Board may establish for the purposes of this section.

Accounting

   (4)  An amount paid out of the Consolidated Revenue Fund under this section shall be charged to the appropriate revenue account.

Transition

   9.1  To the extent a regulation made under subsection 9 (2) as that subsection read on October 22, 2008 does not conflict with any directives of Treasury Board referred to in subsection 9 (3), the regulation remains in force and continues to apply until it is revoked.

Commencement

   2.  This Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2008 (No. 2) receives Royal Assent.

Schedule h
Fuel Tax Act

   1.  (1)  Clause 2 (1) (d) of the Fuel Tax Act is repealed and the following substituted:

  (d)  4.5 cents per litre on all fuel received or used in Ontario to propel railway equipment on rails in connection with and as part of a public transportation system, including any product excluded from this Act by the provisions of this Act or the regulations.

   (2)  Clause 2 (3) (a) of the Act is amended by striking out "in the fuel tank" and substituting "in a fuel tank".

   (3)  Clause 2 (3) (b) of the Act is repealed and the following substituted:

  (b)  fuel that is not clear fuel that the person places in a fuel tank of a motor vehicle or vessel if the motor vehicle or vessel is operated or intended to be operated principally for the pleasure or recreation of its owner or operator.

   (4)  Subsection 2 (6) of the Act is repealed and the following substituted:

Prohibited use of coloured fuel

   (6)  No person shall place or cause to be placed any coloured fuel in a fuel tank of,

  (a)  a motor vehicle to which a number plate is attached as required under the Highway Traffic Act; or

  (b)  a motor vehicle or vessel operated or intended to be operated principally for the pleasure or recreation of its owner or operator.

   (5)  Subsection 2 (7) of the Act is repealed and the following substituted:

Use of coloured fuel

   (7)  Coloured fuel may be used for any purpose prescribed by the Minister for the use of coloured fuel and for all purposes other than generating power in a motor vehicle or vessel referred to in subsection (6).

   2.  Section 4.11 of the Act is amended by adding the following subsection:

Railways

   (2.1)  Subject to section 9, every person who operates railway equipment on rails in Ontario in connection with and as part of a public transportation system must be a registered consumer.

   3.  (1)  Subsections 5 (1) and (2) of the Act are repealed and the following substituted:

Detention and examination of motor vehicle or vessel

   (1)  For the purpose of ascertaining,

  (a)  whether tax imposed by this Act has been paid on clear fuel contained in a fuel tank of a motor vehicle or vessel or whether a fuel tank of a motor vehicle or vessel contains coloured fuel;

  (b)  whether any tax imposed by this Act is payable on such fuel; or

   (c)  whether the operator of a motor vehicle is an interjurisdictional carrier whose motor vehicle carries a valid registration decal or is required to carry such a registration decal under the regulations,

any person authorized for the purpose by the Minister may, without a warrant, if the person has reasonable and probable grounds to believe that a motor vehicle referred to in subsection 2 (6) or a vessel referred to in clause (2) (6) (b) contains evidence of a contravention of this Act, stop and detain the motor vehicle or vessel in Ontario, examine the motor vehicle or vessel and fuel in any fuel tank in it, take samples of the fuel,  inspect any registration decal on the motor vehicle and examine the documents in the custody of the driver of the motor vehicle or operator of the vessel related to liability for tax under this Act, the ownership of the motor vehicle or vessel and the identity of the operator of the motor vehicle or vessel and also examine any driver's licence required under the Highway Traffic Act or any operator's card required under the Canada Shipping Act, 2001 (Canada).

Offence

   (2)  Every driver of a motor vehicle or operator of a vessel that may be stopped and detained under subsection (1) who,

  (a)  fails to comply with a stop sign set up by a person authorized by the Minister to examine any motor vehicle or vessel;

  (b)  fails to obey a lawful signal or request by a person authorized by the Minister to examine any motor vehicle or vessel;

   (c)  drives a motor vehicle to which a valid registration decal is not affixed as required under the regulations;

  (d)  refuses to permit the detention or examination of the motor vehicle or vessel that is under his or her control; or

  (e)  refuses to permit samples of fuel to be taken from a fuel tank of the motor vehicle or vessel that is under his or her control,

is guilty of an offence and on conviction is liable to a fine of not less than $200 and not more than $1,000.

   (2)  Subsection 5 (3) of the Act is amended by striking out "in the fuel tank" and substituting "in a fuel tank".

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

Offence, pleasure use

   (3.1)  Every driver or operator of a motor vehicle described in clause 2 (6) (b) and every operator of a vessel described in that clause is guilty of an offence if it is found that a fuel tank of the motor vehicle or vessel, as the case may be, contains coloured fuel and, on conviction, is liable to a fine of not less than $200 and not more than $1,000.

   (4)  Subsections 5 (4) and (5) of the Act are repealed and the following substituted:

Burden of proof

   (4)  In any proceeding under subsection (3) or (3.1), it is not necessary to prove that coloured fuel was acquired and used in contravention of this Act, but only to prove that a fuel tank of a motor vehicle or vessel contained coloured fuel on the day of the examination under this section.

Subsequent offence

   (5)  The fact that the coloured fuel found in a fuel tank of a motor vehicle or vessel is the same coloured fuel that was found in the fuel tank on another occasion that constituted an offence under subsection (3) or (3.1) is not a defence in a prosecution for a subsequent offence under either subsection if a period of more than 24 hours has elapsed since a sample of fuel was taken from the fuel tank in the motor vehicle or vessel.

   4.  (1)  Paragraphs 4, 5, 6 and 7 of subsection 22.1 (1) of the Act are amended by striking out "the Act" wherever it appears and substituting in each case "this Act".

   (2)  Subsection 22.1 (1) of the Act is amended by adding the following paragraph:

    8.  Each person who is a registered consumer under this Act.

   5.  (1)  Subsection 27.1 (1) of the Act is repealed and the following substituted:

Penalty, re coloured fuel

   (1)  Any person who knowingly,

  (a)  places coloured fuel in a fuel tank of a motor vehicle to which a number plate is attached as required under the Highway Traffic Act;

  (b)  places coloured fuel in a fuel tank of a motor vehicle or vessel described in clause 2 (6) (b); or

   (c)  causes coloured fuel to be placed in a fuel tank in violation of clause (a) or (b),

shall pay a penalty, when assessed therefor, equal to three times the tax that would be payable under section 2 if the fuel were clear fuel sold to a purchaser in Ontario.

   (2)  Section 27.1 of the Act is amended by adding the following subsection:

Penalty, recreational use

   (2.1)  Any person who drives a motor vehicle described in clause 2 (6) (b) or operates a vessel described in that clause at a time when coloured fuel is in a fuel tank of the motor vehicle or vessel shall pay a penalty, when assessed therefor, equal to three times the tax that would be payable under section 2 if the fuel were clear fuel sold to a purchaser in Ontario.

   (3)  Subsection 27.1 (5) of the Act is amended by striking out "subsection (1), (2), (3) or (4)" and substituting "subsection (1), (2), (2.1), (3) or (4)".

Commencement

   6.  This Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2008 (No. 2) receives Royal Assent.

schedule i
income tax act

   1.  (1)  The definition of "adjusted income" in subsection 8 (1) of the Income Tax Act is repealed and the following substituted:

"adjusted income" means, in respect of an individual for a taxation year, the individual's adjusted income as determined for the purposes of subdivision a.1 of Division E of Part I of the Federal Act; ("revenu rajusté")

   (2)  Clause 8 (3.1.1) (b) of the Act is amended by striking out "the 2007 and subsequent taxation years" at the end and substituting "the 2007 taxation year".

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

2008 income threshold for purposes of subs. (3.1)

   (3.1.3)  In calculating under subsection (3.1) the amount, if any, that a senior is entitled to deduct under that subsection for his or her 2008 taxation year, $24,300 is to be substituted for $23,090.

   2.  Paragraph 3 of subsection 10 (1) of the Act is repealed and the following substituted:

    3.  Subsections 153 (1), (1.1), (1.2), (1.4) and (3) and 156.1 (4).

Commencement

   3.  (1)  Subject to subsections (2) and (3), this Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2008 (No. 2) receives Royal Assent.

Same

   (2)  Section 1 is deemed to have come into force on January 1, 2008.

Same

   (3)  Section 2 is deemed to have come into force on June 18, 2008.

Schedule j
Interim Appropriation for 2009-2010 Act, 2008

Interpretation

   1.  (1)  Expressions used in this Act have the same meaning as in the Supply Act, 2008 unless the context requires otherwise.

Same

   (2)  In this Act, a reference to the estimates and supplementary estimates for 2009-10 means the estimates and supplementary estimates for the fiscal year ending on March 31, 2010 as tabled in the Assembly on or before March 31, 2010.

Expenses of the public service

   2.  For the fiscal year ending on March 31, 2010, amounts not exceeding a total of $55,000,000,000 may be paid out of the Consolidated Revenue Fund or incurred as non-cash expenses to be applied to the expenses of the public service that are not otherwise provided for and the money shall be applied in accordance with the votes and items set out in the estimates and supplementary estimates for 2009-10.

Investments of the public service

   3.  For the fiscal year ending on March 31, 2010, amounts not exceeding a total of $1,500,000,000 may be paid out of the Consolidated Revenue Fund to be applied to the investments of the public service in capital assets, loans and other investments that are not otherwise provided for and the money shall be applied in accordance with the votes and items set out in the estimates and supplementary estimates for 2009-10.

Expenses of the Legislative Offices

   4.  For the fiscal year ending on March 31, 2010, amounts not exceeding a total of $130,000,000 may be paid out of the Consolidated Revenue Fund to be applied to the expenses of the Legislative Offices that are not otherwise provided for and the money shall be applied in accordance with the votes and items set out in the estimates and supplementary estimates for 2009-10.

Expenditures of the public service

   5.  An expenditure in the votes and items set out in the estimates and supplementary estimates for 2009-10 may be incurred by the Crown through any ministry to which, during the fiscal year ending on March 31, 2010, responsibility has been given for the program or activity that includes that expenditure.

Commencement

   6.  The Act set out in this Schedule comes into force on April 1, 2009.

Short title

   7.  The short title of the Act set out in this Schedule is the Interim Appropriation for 2009-2010 Act, 2008.

Schedule k
legal Aid Services Act, 1998

   1.  Section 54 of the Legal Aid Services Act, 1998 is amended by striking out "Management Board of Cabinet" and substituting "Treasury Board".

   2.  Subsection 67 (1) of the Act is amended by striking out "Management Board of Cabinet" and substituting "Treasury Board".

   3.  Clause 71 (2) (h) of the Act is amended by striking out "Management Board of Cabinet" and substituting "Treasury Board".

Commencement

   4.  This Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2008 (No. 2) receives Royal Assent.

Schedule l
Limitations Act, 2002

   1.  Section 5 of the Limitations Act, 2002 is amended by adding the following subsections:

Demand obligations

   (3)  For the purposes of subclause (1) (a) (i), the day on which injury, loss or damage occurs in relation to a demand obligation is the first day on which there is a failure to perform the obligation, once a demand for the performance is made.

Same

   (4)  Subsection (3) applies in respect of every demand obligation created on or after January 1, 2004.

   2.  (1)  Clause 15 (6) (c) of the Act is repealed and the following substituted:

   (c)  in the case of an act or omission in respect of a demand obligation, the first day on which there is a failure to perform the obligation, once a demand for the performance is made.

   (2)  Section 15 of the Act is amended by adding the following subsection:

Application, demand obligations

   (7)  Clause (6) (c) applies in respect of every demand obligation created on or after January 1, 2004.

   3.  Subclause 19 (1) (b) (i) of the Act is amended by striking out "the day this Act comes into force" and substituting "January 1, 2004".

   4.  (1)  Subsections 22 (3), (4) and (5) of the Act are amended by striking out "the effective date" wherever it appears and substituting in each case "October 19, 2006". 

   (2)  The definition of "effective date" in subsection 22 (6) of the Act is repealed.

   5.  (1)  The definition of "effective date" in subsection 24 (1) of the Act is repealed.

   (2)  The definition of "former limitation period" in subsection 24 (1) of the Act is amended by striking out "the coming into force of this Act" at the end and substituting "January 1, 2004".

   (3)  The following provisions of section 24 of the Act are amended by striking out "the effective date" wherever it appears and substituting in each case "January 1, 2004":

    1.  Subsection 24 (3).

    2.  Paragraph 2 of subsection 24 (5).

    3.  Subsection 24 (6), in the portion before paragraph 1.

    4.  Paragraph 2 of subsection 24 (6).

    5.  Subsection 24 (7).

   (4)  Subsection 24 (2) of the Act is amended by striking out the first instance of "the effective date" and substituting "January 1, 2004" and by striking out the second instance of "the effective date" and substituting "that date".

   (5)  Subsection 24 (4) of the Act is amended by striking out the first instance of "the effective date" and substituting "January 1, 2004" and by striking out the second instance of "the effective date" and substituting "that date".

   (6)  Subsection 24 (5) of the Act is amended by striking out the first instance of "the effective date" in the portion before paragraph 1 and substituting "January 1, 2004" and by striking out the second instance of "the effective date" in the portion before paragraph 1 and substituting "that date".

   (7)  Paragraph 1 of subsection 24 (5) of the Act is amended by striking out the first instance of "the effective date" and substituting "January 1, 2004" and by striking out the second instance of "the effective date" and substituting "that date".

   (8)  Paragraph 1 of subsection 24 (6) of the Act is amended by striking out the first instance of "the effective date" and substituting "January 1, 2004" and by striking out the second instance of "the effective date" and substituting "that date".

   (9)  Section 24 of the Act is amended by adding the following subsection:

Claims re payments alleged to be ultra vires

   (7.1)  For the purposes of this section, clause 45 (1) (g) of the Limitations Act, as it read immediately before its repeal, applies to a claim respecting amounts paid to the Crown or to another public authority for which it is alleged that no valid legal authority existed at the time of payment.

   (10)  Subsection 24 (8) of the Act is amended by striking out "the day this Act comes into force" at the end and substituting "January 1, 2004".

Commencement

   6.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2008 (No. 2) receives Royal Assent.

Same

   (2)  Subsection 5 (9) is deemed to have come into force on October 22, 2008.

Schedule m
Local Roads Boards Act

   1.  The Local Roads Boards Act is amended by adding the following section:

Annual estimate

   10.0.1  (1)  The board shall prepare an estimate of the amount required for the purposes of the board for a year.

Same

   (2)  The estimate for a particular year may be prepared during the year or during the preceding year.

Same

   (3)  In preparing its estimate for a year, a board shall make due allowance for any surplus of any previous year that will be available in the current year and for any uncollectable taxes and for any money to be credited to the board under sections 31 and 32 in the current year.

   2.  Section 21 of the Act is repealed and the following substituted:

Annual levy

Definitions

   21.  (1)  In this section,

"assessment" means the assessment for real property made under the Assessment Act according to the last returned roll; ("évaluation")

"property class" means a class of real property prescribed under the Assessment Act; ("catégorie de biens")

"residential property class" means the residential property class prescribed under the Assessment Act; ("catégorie des biens résidentiels")

"tax ratio" means a tax ratio described in subsection (7). ("coefficient d'impôt")

Tax rates

   (2)  Each year, the board shall levy a separate tax rate on the assessment in each property class in the local roads area of the board.

Adjustments to assessments

   (3)  For the purposes of subsection (2), the assessment in each property class includes any adjustments made under section 32, 33, 34, 39.1 or 40 of the Assessment Act to the assessments on the assessment roll as returned for the taxation year if the adjustments are made on the tax roll before the board determines the tax rate referred to in subsection (2).

Taxes to be levied equally

   (4)  The tax rate shall be levied upon the whole of the assessment for real property in the local roads area of the board according to the amounts assessed and not upon one or more kinds of property or assessment or in different proportions.

Calculation of rates

   (5)  The tax rates shall be calculated as percentages of the assessment in each property class.

Restrictions on rates

   (6)  The tax rates to be levied under this section are subject to the following restrictions:

    1.  The rates must be set so that, when they are levied on the applicable assessment, a sum equal to the amount estimated for the year by the board under subsection 10.0.1 (1) is raised.

    2.  The rates on the different property classes must be in the same proportion to each other as the tax ratios for the property classes are to each other.

What tax ratios are

   (7)  The tax ratios are the ratios that the tax rate for each property class must be to the tax rate for the residential property classes where the residential property class is one.

Regulations

   (8)  The Minister of Finance may make regulations prescribing, for a particular board, the tax ratios or the method for determining tax ratios.

   3.  (1)  Subsection 29.1 (1) of the Act is repealed and the following substituted:

Delegation re tax collection

   (1)  A board may enter into an agreement with the Minister of Finance providing for the delegation to the Minister of Finance of the board's powers under this Act to collect tax.

Timing

   (1.1)  An agreement must be entered into no later than December 1^{of the year preceding the first taxation year to which the delegation applies.}

Transition

   (1.2)  Despite subsection (1.1), an agreement may be entered into no later than March 1, 2009 for a delegation that applies to the 2009 taxation year.

   (2)  Subsections 29.1 (3) and (4) of the Act are repealed and the following substituted:

Termination of agreement

   (3)  The Minister of Finance may terminate an agreement by giving written notice to the board at least 12 months before the beginning of the taxation year in respect of which agreement ceases to apply.

Same

   (4)  A board may terminate an agreement by serving notice on the Minister of Finance at least 12 months before the beginning of the taxation year in respect of which the agreement ceases to apply.

   4.  Subsection 31 (1) of the Act is repealed and the following substituted:

Credits

   (1)  The money received by the Minister from a board shall be paid into the Consolidated Revenue Fund and credited to that board, and the Minister shall cause to be credited to that board, out of money appropriated therefor by the Legislature, an amount not exceeding twice the amount of the money so received.

Same, tax collectable by the Minister of Finance

   (1.1)  Upon receiving written notice from the Minister of Finance of the amount of tax collectable by the Minister of Finance for a board in respect of a taxation year under an agreement authorized by section 29.1, the Minister shall cause that amount to be credited to the board and the Minister may cause an amount not exceeding twice that amount to be credited to the board out of money appropriated therefor by the Legislature.

   5.  Section 32 of the Act is repealed and the following substituted:

Credits re unoccupied Crown land

   32.  (1)  In addition to the amounts credited to a board by the Minister under section 31, the Minister may annually credit to a board in respect of unoccupied Crown land fronting on a local road in the local roads area an amount equal to the lesser of,

  (a)  the amount prescribed by the regulations; or

  (b)  twice the amount remitted to the Minister by the board under section 30 or, if the board has entered into an agreement under section 29.1, twice the amount of tax collectable by the Minister of Finance under subsection 31 (1.1).

Same

   (2)  Amounts credited under subsection (1) shall be paid out of money appropriated therefor by the Legislature.

Regulations

   (3)  The Minister may make regulations prescribing an amount for the purposes of clause (1) (a).

   6.  The English version of subsection 33 (1) of the Act is amended by striking out "the money credited to each board" and substituting "the amounts credited to each board".

   7.  The Act is amended adding the following section:

Advance re tax not yet collectable by the Minister of Finance

   33.1  (1)  Upon request by the Minister, the Minister of Finance may authorize an advance to be paid from the Consolidated Revenue Fund to the Minister in respect of a local board if both the following circumstances exist:

    1.  The Minister of Finance is authorized by an agreement under section 29.1 to collect the tax for the board for the taxation year.

    2.  The tax is not yet collectable.

Amount of advance

   (2)  The amount of the advance is as determined by the Minister of Finance.

Authority to spend

   (3)  The Minister is authorized to spend the amount advanced in respect of a local board for a purpose described in subsection 33 (1).

Recovery of advance

   (4)  When an amount is credited to the board under subsection 31 (1.1) for the taxation year, the amount advanced shall be recovered into the Consolidated Revenue Fund by way of set off against the amount so credited.

Commencement

   8.  This Schedule comes into force on January 1, 2009.

Schedule n
Northern Services Boards Act

   1.  Section 22 of the Northern Services Boards Act is amended by adding the following subsection:

Transition, interim assessment for 2009

   (2)  The Municipal Property Assessment Corporation shall send the information required by subsection (1) showing the amount of the interim assessment for 2009 to the secretary no later than January 1, 2009.

   2.  (1)  Subsection 23 (4) of the Act is repealed and the following substituted:

When rates to be added

   (4)  No rate shall be imposed under the Provincial Land Tax Act, 2006 for the purposes of the Board unless,

  (a)  the rate, the purpose for which it is to be levied, and the area in which the rate is to be levied, are approved by a majority vote of the inhabitants present and voting at a meeting called for that purpose; and

  (b)  the rate or rates for a taxation year that are to be imposed for the purposes of the Board satisfy the requirements set out in section 23.1.

   (2)  Subsections 23 (6) and (7) of the Act are repealed.

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

Requirements re rates

Definitions

   23.1  (1)  In this section,

"assessment" means the assessment for real property made under the Assessment Act according to the last returned roll; ("évaluation")

"property class" means a class of real property prescribed under the Assessment Act; ("catégorie de biens")

"rate ratio" means a rate ratio described in subsection (7); ("coefficient d'impôt")

"residential property class" means the residential property class prescribed under the Assessment Act. ("catégorie des biens résidentiels")

Application of rates

   (2)  Unless expressly provided otherwise in this Act, the rate or rates to be imposed under the Provincial Land Tax Act, 2006 for the purposes of a Board apply to the assessment in each property class in the Board area.

Adjustments to assessments

   (3)  For the purposes of subsection (2), the assessment in each property class includes any adjustments made under section 32, 33, 34, 39.1 or 40 of the Assessment Act to the assessments on the assessment roll as returned for the taxation year if the adjustments are made on the tax roll before the Minister of Finance levies the rate.

Rates to be equal

   (4)  Unless expressly provided otherwise in this Act, the rate or rates apply to the whole of the assessment for real property in the Board area according to the amounts assessed and not upon one or more kinds of property or assessment or in different proportions.

Calculation of rates

   (5)  The rates set by a Board shall, unless expressly provided otherwise in this Act, be calculated as percentages of the assessment of real property in each property class.

Restrictions on rates

   (6)  The rates are subject to the following restrictions:

    1.  The rates must be set so that, when they are levied on the applicable assessment, a sum equal to the annual estimates for the year by the Board under section 23 is raised.

    2.  The rates on the different property classes must be in the same proportion to each other as the rate ratios for the property classes are to each other.

What rate ratios are

   (7)  The rate ratios are the ratios that the rate for each property class must be to the rate for the residential property classes, where the residential property class is one.

Regulations

   (8)  The Minister of Finance may make regulations prescribing, for a particular Board, the rate ratios or the method for determining rate ratios.

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

Collection of fees under the Provincial Land Tax Act, 2006

   25.1  (1)  A Board may by by-law passed before December 1 in a year request the Minister of Finance to collect under the Provincial Land Tax Act, 2006 in the following year the fees charged by the Board in respect of a service.

Copy of by-law

   (2)  The secretary shall send a copy of the by-law passed under subsection (1) to the Minister of Finance by registered mail immediately after the passing of the by-law.

   5.  (1)  Subsection 26 (1) of the Act is amended by striking out "in the calendar year for which the by-law was passed".

   (2)  Section 26 of the Act is amended by adding the following subsection:

Collection of fees

   (2.1)  Where the Minister of Finance receives a by-law passed under subsection 25.1 (1), the Minister shall collect the fees set out in the by-law and the fees shall be shown on the tax bill under the Provincial Land Tax Act, 2006 in respect of the property as "Fees for the purposes of The Local Services Board of (or Droits perçus aux fins de la régie locale des services publics de) ... (naming the Board)", and shall be collected as if the fees were taxes imposed under that Act.

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

Advances and other payments

Payment re rates

   26.1  (1)  In addition to the amount payable to a Board under subsection 26 (3), the Minister of Finance shall pay to the Board from the Consolidated Revenue Fund an amount equal to the difference, if any, between the rate or rates levied for a taxation year under subsection 26 (1) and the amount collected by the Minister of Finance.

Payment re fees

   (2)  In addition to the amount payable to a Board under subsection 26 (3), the Minister of Finance shall pay to the Board from the Consolidated Revenue Fund an amount equal to the difference, if any, between the amount of fees collectable for a fiscal year by the Minister of Finance and the amount collected.

Status of payments

   (3)  Any amount paid to a Board under subsection (1) or (2) is deemed to be tax levied by the Crown under section 2 of the Provincial Land Tax Act, 2006.

Advance from the Minister of Finance

   (4)  If the Minister of Finance receives a by-law passed under subsection 25 (1) or 25.1 (1), the Minister of Finance may provide advances to the Board from the Consolidated Revenue Fund in respect of any amount that the Minister of Finance is or may become required to pay under subsection (1) or (2) or under subsection 26 (3).

Same

   (5)  Advances under subsection (4) do not bear interest, and the Crown may incur a non-cash expense within the meaning of the Financial Administration Act in connection with the advances.

Recovery of advance

   (6)  The amount advanced to a Board under subsection (4) shall be recovered into the Consolidated Revenue Fund by way of set off against the amount collected by the Minister of Finance for the Board under section 25 or 25.1 and against the amount to be paid to the Board under subsection (1) or (2).

   7.  Subsection 43 (1) of the Act is repealed and the following substituted:

Taxation of real property

   (1)  For the purpose of funding service delivery in a Board area, tax may be levied on all real property in the Board area that is liable to assessment and taxation under the Assessment Act and that is not subject to an exemption under the Provincial Land Tax Act, 2006.

Commencement

   8.  This Schedule comes into force on January 1, 2009.

Schedule o
ONTARIO CAPITAL GROWTH CORPORATION ACT, 2008

CONTENTS
	Definitions
	1.	Definitions
	Corporation
	2.   3.   4.   5.	Corporation established Members Objects Crown agents
	Powers and Duties
	6.   7.   8.   9. 10. 11. 12.	Powers Policies and directives of the Minister Powers and duties of the board Employees and other assistance Immunity of employees and others Fiscal year Business plan
	Financial Matters and Reports
	13. 14. 15. 16. 17.	Status of revenues and assets Financial records, etc. Audit Annual report Other reports
	General
	18. 19. 20. 21.	Winding up the Corporation Regulations Commencement Short title
	______________

Definitions

Definitions

   1.  In this Act,

"board" means the board of directors of the Corporation; ("conseil d'administration")

"Corporation" means the corporation established in section 2; ("Société")

"Minister" means the Minister of Research and Innovation or whatever other member of the Executive Council to whom the administration of this Act is assigned or transferred under the Executive Council Act; ("mi­nistre")

"regulations" means the regulations made under this Act; ("règlements")

"subsidiary" means a corporation that is a subsidiary of the Corporation. ("filiale")

Corporation

Corporation established

   2.  (1)  A corporation to be known in English as Ontario Capital Growth Corporation and in French as Société ontarienne de financement de la croissance is established as a corporation without share capital.

Non-application of Acts

   (2)  The Corporations Act and the Corporations Information Act do not apply to the Corporation.

Members

   3.  (1)  The members of the Corporation shall consist of the members of its board of directors.

Board

   (2)  The board shall consist of at least three and not more than 12 members who are appointed by the Lieutenant Governor in Council.

Remuneration and expenses

   (3)  The Corporation shall pay its members the remuneration and expenses that the Lieutenant Governor in Council determines.

Chair and vice-chair

   (4)  The Lieutenant Governor in Council shall designate one of the members of the Corporation as chair of the board and at least one other member as a vice-chair of the board.

Absence of chair

   (5)  If the chair is absent or otherwise unable to act or if the office is vacant, the vice-chair shall act in the place of the chair.

Objects

   4.  The objects of the Corporation are,

  (a)  to receive, hold, administer and otherwise deal with the interest of the Government of Ontario in the limited partnership known as the Ontario Venture Capital Fund LP;

  (b)  to receive, hold and deal with property, whether real or personal, in connection with the objects described in clause (a); and

   (c)  to carry out the other objects that are prescribed by the regulations.

Crown agents

   5.  (1)  Subject to subsections (2) and (3), the Corporation and its subsidiaries, if any, are Crown agents for all purposes.

Exception

   (2)  The Corporation or a subsidiary may declare in writing in an agreement, security or instrument that it is not acting as a Crown agent for the purposes of the agreement, security or instrument.

Effect of declaration

   (3)  If the Corporation or a subsidiary makes a declaration in accordance with subsection (2), the Corporation or subsidiary shall not be a Crown agent for the purposes of the agreement, security or instrument and the Crown is not liable for any liability or obligation of the Corporation or subsidiary under the agreement, security or instrument.

Powers and Duties

Powers

   6.  (1)  The Corporation has the capacity, rights, powers and privileges of a natural person for carrying out its objects, except as limited under this Act.

Subsidiaries

   (2)  The Corporation shall not establish a subsidiary without the consent of the Lieutenant Governor in Council.

Borrowing and investments

   (3)  The Corporation or a subsidiary shall not borrow, make investments or manage financial risks unless,

  (a)  a by-law of the Corporation or the subsidiary, as the case may be, authorizes the activity and the Minister of Finance has consented to the by-law; and

  (b)  the Ontario Financing Authority co-ordinates and arranges the activity, unless the Minister of Finance agrees otherwise.

Exception

   (4)  Subsection (3) does not apply to investment activities that the Corporation undertakes to carry out its objects described in clause 4 (a).

Policies and directives of the Minister

   7.  (1)  The Minister may issue policies or directives in writing to the Corporation or any subsidiary on matters relating to the exercise of its powers or duties.

Implementation

   (2)  The board shall ensure that the policies and directives issued to the Corporation are implemented promptly and efficiently.

Same, subsidiary

   (3)  The governing body of a subsidiary shall ensure that the policies and directives issued to the subsidiary are implemented promptly and efficiently.

Powers and duties of the board

   8.  (1)  The board shall manage and supervise the affairs of the Corporation in accordance with this Act.

By-laws

   (2)  The board may pass by-laws and resolutions regulating its proceedings and generally for the conduct and management of the affairs of the Corporation.

Conflict of interest, etc.

   (3)  Section 132 (conflict of interest), subsection 134 (1) (standards of care) and section 136 (indemnification) of the Business Corporations Act apply, with necessary modifications, to the Corporation and to the members of the board.

Employees and other assistance

   9.  (1)  Under Part III of the Public Service of Ontario Act, 2006, the Public Service Commission may appoint the employees who are considered necessary for the proper conduct of the business of the Corporation.

Service agreements for employees

   (2)  The Corporation may enter into agreements with any Minister of a Ministry or the head of any Crown agency to have employees of the Crown employed in that Ministry or employees of that Crown agency, as the case may be, provide services to the Corporation.

Professional assistance

   (3)  The Corporation may,

  (a)  engage persons, other than those mentioned in subsection (1) or (2), to provide professional, technical or other assistance to or on behalf of the Corporation; and

  (b)  establish the terms of engagement and provide for the payment of the remuneration and expenses of the persons engaged under clause (a).

Immunity of employees and others

   10.  (1)  No action or other civil proceeding shall be commenced against a member, officer, employee of the Corporation or a subsidiary or against a person engaged by the Corporation for any act done in good faith in the exercise or performance or intended exercise or perfor­mance of a power or duty under this Act, the regulations, the by-laws of the Corporation or a subsidiary or under a directive issued under subsection 7 (1) or for any neglect or default in the exercise or performance in good faith of such a power or duty.

Immunity of the Crown and Crown agencies

   (2)  No action or other civil proceeding shall be commenced against the Crown or a Crown agency for any act, neglect or default by a person mentioned in subsection (1) or for any act, neglect or default by the Corporation or a subsidiary.

Liability of Corporation or subsidiary

   (3)  Subsections (1) and (2) do not relieve the Corporation or a subsidiary of any liability to which it would otherwise be subject in respect of a cause of action arising from any act, neglect or default mentioned in subsection (1).

Fiscal year

   11.  The Corporation's fiscal year commences on April 1 in each year and ends on March 31 in the following year.

Business plan

   12.  (1)  At least six months before the beginning of each fiscal year or by such other date that the Minister specifies, the Corporation shall submit its business plan for the fiscal year to the Minister for approval.

Contents

   (2)  The business plan must be based on a three-year cycle and must include,

  (a)  the Corporation's proposed operating budget for the fiscal year;

  (b)  the Corporation's projected operating budget for each of the next two fiscal years after the fiscal year;

   (c)  the projected revenues of the Corporation for the fiscal year and their sources;

  (d)  the projected operating expenditures of the Corporation for the fiscal year;

  (e)  performance measures establishing targets for the fiscal year; and

    (f)  all other information that the Minister requires.

Changes

   (3)  The Corporation may make changes to its business plan with the approval of the Minister.

Financial Matters and Reports

Status of revenues and assets

   13.  (1)  Despite Part I of the Financial Administration Act, all revenues and assets of the Corporation and its subsidiaries, if any, do not form part of the Consolidated Revenue Fund.

Investment of surplus money

   (2)  The Corporation may temporarily invest any money not immediately required to carry out its objects described in clause 4 (a) in,

  (a)  debt obligations of or guaranteed by the Government of Canada or a province of Canada; or

  (b)  interest bearing accounts and short term certificates of deposit issued or guaranteed by a chartered bank, trust company, credit union or caisse populaire.

Financial records, etc.

   14.  (1)  The Corporation shall maintain financial records for the Corporation and its subsidiaries and shall establish financial, management and information systems that will enable the Corporation to prepare financial statements in accordance with generally accepted accounting principles.

Inspection

   (2)  Upon the request of the Minister, the Corporation and its subsidiaries shall promptly make their financial records available for inspection.

Audit

   15.  (1)  The board shall appoint one or more licensed public accountants to audit the accounts and financial transactions of the Corporation and its subsidiaries for the previous fiscal year.

Auditor General

   (2)  The Auditor General may also audit the accounts and financial transactions of the Corporation or any of its subsidiaries for any fiscal year.

Minister-appointed auditor

   (3)  The Minister may at any time appoint a licensed public accountant, other than the person appointed under subsection (1), to audit the accounts and financial transactions of the Corporation or any of its subsidiaries for any period of time that the Minister specifies.

Co-operation by Corporation

   (4)  If the Minister requires that an audit of the Corporation be conducted under subsection (3), the Corporation shall co-operate fully with the person performing the audit to facilitate the audit.

Annual report

   16.  (1)  The board shall submit an annual report on its affairs to the Minister within 90 days after the end of each fiscal year.

Contents

   (2)  The report shall include the audited financial statements of the Corporation.

Tabling

   (3)  The Minister shall,

  (a)  submit the report to the Lieutenant Governor in Council;

  (b)  lay the report before the Assembly if it is in session; and

   (c)  deposit the report with the Clerk of the Assembly if the Assembly is not in session.

Other reports

   17.  The Corporation shall promptly prepare and submit to the Minister any other report that the Minister requires.

General

Winding up the Corporation

   18.  (1)  The Lieutenant Governor in Council may by order require the board of directors to wind up the affairs of the Corporation.

Approved plan required

   (2)  The board shall prepare a proposed plan for winding up the Corporation and transferring its assets and liabilities and shall give the proposed plan to the Lieutenant Governor in Council for approval.

Restriction

   (3)  The plan for winding up the Corporation may provide for,

  (a)  liquidating assets and transferring the proceeds to the Consolidated Revenue Fund or to an agency of the Crown; and

  (b)  transferring assets and liabilities to the Crown in right of Ontario or to an agency of the Crown.

Implementation

   (4)  When the Lieutenant Governor in Council approves the proposed plan, the board of directors shall wind up the affairs of the Corporation and transfer its assets and liabilities, including transferring the proceeds from the liquidation of assets, in accordance with the plan.

Regulations

   19.  (1)  The Lieutenant Governor in Council may make regulations,

  (a)  prescribing objects of the Corporation for the purpose of clause 4 (c);

  (b)  specifying the objects, powers and duties of subsidiaries and providing for the management of subsidiaries;

   (c)  respecting any other matter that the Lieutenant Governor in Council considers necessary or advisable to carry out effectively the intent and purpose of this Act.

Scope

   (2)  A regulation may impose limits, conditions, requirements or restrictions and may be general or particular in its application.

Commencement

   20.  The Act set out in this Schedule comes into force on a day to be named by proclamation of the Lieutenant Governor.

Short title

   21.  The short title of the Act set out in this Schedule is the Ontario Capital Growth Corporation Act, 2008.

Schedule p
ottawa congress Centre Act

   1.  The short title of the Ottawa Congress Centre Act is repealed and the following substituted:

Ottawa Convention Centre Corporation Act

   2.  The definition of "Centre" in section 1 of the Act is repealed and the following substituted:

"Centre" means Ottawa Convention Centre Corporation; ("Centre")

   3.  Subsection 2 (1) of the Act is repealed and the following substituted:

Corporation continued

   (1)  The corporation known in English as the Ottawa Congress Centre and in French as Centre des congrès d'Ottawa is continued as a corporation without share capital known as the Ottawa Convention Centre Corporation in English and in French as Société du Centre des congrès d'Ottawa.

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

Objects

   (1)  The objects of the Centre are to operate, maintain and manage an international class convention centre facility in the City of Ottawa in a manner that will promote and develop tourism and industry in Ontario.

Name of facility

   (1.1)  The name of the facility mentioned in subsection (1) shall be,

  (a)  the Ottawa Convention Centre in English and Centre des congrès d'Ottawa in French; or

  (b)  whatever other name that the Board specifies and the Minister has approved.

   (2)  Subsection 6 (2) of the Act is amended by adding the following clause:

(0.a) with the approval of the Minister, to specify a name of the convention centre facility mentioned in subsection (1) for the purpose of clause (1.1) (b);

   5.  Subsection 11 (2) of the Act is amended by striking out "Treasurer of Ontario" and substituting "Minister of Finance".

Commencement

   6.  This Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2008 (No. 2) receives Royal Assent.

Schedule q
provincial land tax Act, 2006

   1.  Section 6 of the Provincial Land Tax Act, 2006 is amended by adding the following subsection:

Billing and payments

   (1.1)  If the Minister sends an assessed owner more than one tax bill for property tax payable for the year, the tax payable for the period specified in the bill shall be billed in the prescribed manner and shall be paid in accordance with the regulations.

   2.  Subsection 8 (1) of the Act is amended by striking out "all or part of the property tax levied on" in the portion before clause (a) and substituting "all or part of the tax levied under this Act or the Education Act".

   3.  Subsection 20 (1) of the Act is repealed and the following substituted:

Amounts collected on behalf of other bodies

   (1)  If amounts payable under one or more prescribed Acts to one or more bodies specified in those Acts are to be collected as if the amounts were tax payable under this Act, the Minister shall apply all amounts collected under this Act in respect of a property in the prescribed manner.

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

Authority to enter into agreements with municipalities

   24.1  The Minister, on behalf of Her Majesty in right of Ontario, may enter into and amend agreements with municipalities under which the municipality will act as agent of the Minister respecting the administration and enforcement of this Act.

   5.  Subsection 25 (1) of the Act is amended by adding the following clauses:

   (k)  providing for the payment of interest on any refund, rebate, deferral or cancellation of property tax that is authorized by this Act and prescribing the rate thereof;

    (l)  prescribing the manner in which property tax payable is billed and paid for the purposes of subsection 6 (1.1).

Commencement

   6.  This Schedule comes into force on January 1, 2009.

Schedule r
Securities Act

   1.  Section 127 of the Securities Act is amended by adding the following subsection:

Inter-jurisdictional enforcement

   (10)  Without limiting the generality of subsections (1) and (5), an order may be made under subsection (1) or (5) in respect of a person or company if any of the following circumstances exist:

    1.  The person or company has been convicted in any jurisdiction of an offence arising from a transaction, business or course of conduct related to securities.

    2.  The person or company has been convicted in any jurisdiction of an offence under a law respecting the buying or selling of securities.

    3.  The person or company has been found by a court in any jurisdiction to have contravened the laws of the jurisdiction respecting the buying or selling of securities.

    4.  The person or company is subject to an order made by a securities regulatory authority in any jurisdiction imposing sanctions, conditions, restrictions or requirements on the person or company.

    5.  The person or company has agreed with a securities regulatory authority in any jurisdiction to be made subject to sanctions, conditions, restrictions or requirements.

Commencement

   2.  This Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2008 (No. 2) receives Royal Assent.

SCHEDULE s
SOCIAL HOUSING REFORM ACT, 2000

   1.  Subsection 134 (5) of the Social Housing Reform Act, 2000 is repealed.

   2.  Section 135 of the Act is amended by striking out "In sections 136 to 138" at the beginning and substituting "In section 136".

   3.  Section 136 of the Act is repealed and the following substituted:

GTA equalization

   136.  (1)  The rules governing the amount of housing costs payable by GTA service managers are the rules set out in this section.

Application of certain provisions

   (2)  Sections 122 to 127 and subsection 128 (1) apply in respect of GTA service managers.

Regulation prescribing amounts of payments

   (3)  The Lieutenant Governor in Council may make a regulation prescribing amounts, including a nil amount, that a GTA service manager is required to pay to one or more of the other GTA service managers for each of 2007 and subsequent years in respect of past, present and future housing costs of the GTA service managers.

Notice to service manager

   (4)  The Minister shall give to a GTA service manager required to pay a prescribed amount a written notice setting out the amounts to be paid, the date on which those amounts are payable and such other information as the Minister considers appropriate.

When notice to be given

   (5)  The notice under subsection (4) shall be given on or before the earliest of the dates on which the amounts are payable.

Payment

   (6)  A GTA service manager shall make payment to the Minister of Finance in accordance with the notice, and the Minister of Finance shall remit the payment to the other service manager or service managers.

Interest and penalties

   (7)  If a GTA service manager does not pay the Minister of Finance the amount payable under a notice given under subsection (4), the GTA service manager to which the amount is owed may charge the service manager interest and penalties in accordance with the regulations.

Collection of amounts payable

   (8)  An amount payable under a notice given under subsection (4) is a debt of the GTA service manager owing to the other GTA service manager on and after the due date set out in the notice, and the debt together with any interest or penalty that is charged on the debt under this Act may be recovered by any remedy or procedure available by law to the GTA service manager.

Same

   (9)  A GTA service manager may set off against amounts it owes to another GTA service manager any amount payable by the other GTA service manager to it under this section.

   4.  Section 137 of the Act is repealed.

   5.  Section 138 of the Act is repealed.

   6.  (1)  Paragraph 17 of subsection 174 (1) of the Act is repealed.

   (2)  Paragraph 18 of subsection 174 (1) of the Act is amended by striking out "(9)" and substituting "(7)".

   (3)  Paragraphs 19, 20 and 21 of subsection 174 (1) of the Act are repealed.

Commencement

   7.  This Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2008 (No. 2) receives Royal Assent.

Schedule t
Supplementary Interim Appropriation Act, 2008

Interpretation

   1.  (1)  Expressions used in this Act have the same meaning as in the Supply Act, 2008 unless the context requires otherwise.

Same

   (2)  In this Act, a reference to the estimates and supplementary estimates for 2008-09 means the estimates and supplementary estimates for the fiscal year ending on March 31, 2009 as tabled in the Assembly on or before March 31, 2009.

Additional amounts to be paid out of CRF

   2.  All amounts authorized under sections 3, 4 and 5 to be paid out of the Consolidated Revenue Fund are in addition to the amounts authorized to be paid out of the Consolidated Revenue Fund under sections 2, 3 and 4 of the Interim Appropriation Act, 2008.

Expenses of the public service

   3.  For the fiscal year ending on March 31, 2009, amounts not exceeding a total of $32,474,349,400 may be paid out of the Consolidated Revenue Fund or incurred as non-cash expenses to be applied to the expenses of the public service that are not otherwise provided for and the money shall be applied in accordance with the votes and items set out in the estimates and supplementary estimates for 2008-09.

Investments of the public service

   4.  For the fiscal year ending on March 31, 2009, amounts not exceeding a total of $1,110,818,500 may be paid out of the Consolidated Revenue Fund to be applied to the investments of the public service in capital assets, loans and other investments that are not otherwise provided for and the money shall be applied in accordance with the votes and items set out in the estimates and supplementary estimates for 2008-09.

Expenses of the Legislative Offices

   5.  For the fiscal year ending on March 31, 2009, amounts not exceeding a total of $62,907,500 may be paid out of the Consolidated Revenue Fund to be applied to the expenses of the Legislative Offices that are not otherwise provided for and the money shall be applied in accordance with the votes and items set out in the estimates and supplementary estimates for 2008-09.

Expenditures of the public service

   6.  An expenditure in the votes and items set out in the estimates and supplementary estimates for 2008-09 may be incurred by the Crown through any ministry to which, during the fiscal year ending on March 31, 2009, responsibility has been given for the program or activity that includes that expenditure.

Commencement

   7.  The Act set out in this Schedule is deemed to have come into force on April 1, 2008.

Short title

   8.  The short title of the Act set out in this Schedule is the Supplementary Interim Appropriation Act, 2008.

schedule u
taxation act, 2007

   1.  Subsection 13 (2) of the Taxation Act, 2007 is repealed and the following substituted:

Specified percentage

   (2)  For the purposes of clause (1) (b), the specified percentage is,

  (a)  39.0182 per cent for a taxation year ending before January 1, 2010;

  (b)  42.84 per cent for a taxation year ending after December 31, 2009 and before January 1, 2011;

   (c)  46.8501 per cent for a taxation year ending after December 31, 2010 and before January 1, 2012; and

  (d)  51.2658 per cent for a taxation year ending after December 31, 2011.

   2.  Clause (c) of the definition of "C" in subsection 57 (1) of the Act is amended by striking out "and" at the end of subclause (iv), by adding "and" at the end of subclause (v) and by adding the following subclause:

         (vi)  the amount of any gain in respect of a disposition of property by the corporation that is described in subparagraph 38 (a.1) (iii) or paragraph 38 (a.3) of the Federal Act if the gift to a qualified donee for the purposes of that provision occurs on or after February 26, 2008,

   3.  The definition of "eligible educational institution" in subsection 88 (21) of the Act is amended by striking out "and" at the end of clause (b), by adding "and" at the end of clause (c) and by adding the following clause:

  (d)  Redeemer University College;

   4.  (1)  Subsections 96 (3), (4) and (5) of the Act are repealed and the following substituted:

Expenditure limit

   (3)  Subject to subsections (4.2) and (6), the amount of a corporation's expenditure limit for a taxation year for the purposes of subsection (2) is the amount calculated using the formula,

($7 million – 10A) ×

in which,

  "A"  is the greater of,

         (a)  $400,000, and

         (b)  the amount that is,

                   (i)  if the corporation is not associated with any other corporation in the taxation year, the corporation's taxable income under the Federal Act for its immediately preceding taxation year, determined before taking into consideration the specified future tax consequences for that preceding year, or

                  (ii)  if the corporation is associated with one or more corporations in the taxation year, the associated group's taxable income for the corporation's immediately preceding taxation year, as determined under subsection (4), and

  "B"  is,

         (a)  nil if,

                   (i)  the corporation's specified capital amount for the immediately preceding  taxation year is not more than $25 million and the corporation is not associated with any other corporation in the taxation year, or

                  (ii)  the corporation is associated with one or more corporations in the taxation year and the associated group's specified capital amount for the preceding taxation year as determined under subsection (4.1) is not more than $25 million, or

         (b)  in any other case, the lesser of $25 million and the amount by which the corporation's specified capital amount for the immediately preceding taxation year or, if the corporation is associated with one or more corporations in the taxation year, the associated group's specified capital amount for the immediately preceding taxation year exceeds $25 million.

Associated group's taxable income

   (4)  If a corporation is associated with one or more corporations in a particular taxation year, the associated group's taxable income for the corporation's immediately preceding taxation year is the sum of,

  (a)  the corporation's taxable income under the Federal Act for its last taxation year ending in the last calendar year that ended before the end of the particular taxation year, determined before taking into consideration the specified future tax consequences for that preceding year; and

  (b)  the sum of all amounts each of which is the taxable income of an associated corporation under the Federal Act for the associated corporation's last taxation year ending in the last calendar year that ended before the end of the particular taxation year, determined before taking into consideration the specified future tax consequences for that last taxation year.

Associated group's specified capital amount

   (4.1)  If a corporation is associated with one or more corporations in a particular taxation year, the associated group's taxable capital amount for the immediately preceding taxation year is the sum of,

  (a)  the corporation's specified capital amount for its last taxation year ending in the last calendar year that ended before the end of the particular taxation year; and

  (b)  the sum of all amounts each of which is the specified capital amount of a corporation with which the corporation is associated in the taxation year, for the associated corporation's last taxation year ending in the last calendar year that ended before the end of the particular taxation year.

Transitional, February 26, 2008

   (4.2)  A corporation's expenditure limit for a taxation year that straddles February 26, 2008 is equal to the amount determined by the formula,

A – [(A – B) × (C/D)]

in which,

  "A"  is the amount that would be determined in respect of the corporation for the taxation year under subsection (3) if this section were read without reference to this subsection,

  "B"  is the amount that would have been determined in respect of the corporation for the taxation year under subsection 43.3 (3.2) of the Corporations Tax Act if the taxation year commenced after May 4, 1999 and before February 26, 2008,

  "C"  is the number of days in the taxation year that are before February 26, 2008, and

  "D"  is the number of days in the taxation year.

Application of federal rules

   (5)  Subsections 127 (10.21), (10.22), (10.23), (10.3), (10.4) and (10.6) of the Federal Act apply with necessary modifications for the purposes of subsection (3) and, without limiting the generality of the foregoing, in the application of section 127 of the Federal Act for the purposes of subsection (3), a reference to a Canadian-controlled private corporation is deemed to be a reference to a qualifying corporation as defined in subsection (7).

   (2)  Subsection 96 (18) of the Act is amended by adding the following definition:

"associated group" means, in respect of a corporation for a taxation year, the corporation and all corporations associated with the corporation in the taxation year; ("groupe")

   5.  The definition of "adjusted income" in subsection 98 (1) of the Act is repealed and the following substituted:

"adjusted income" means, in respect of an individual for a taxation year, the individual's adjusted income as determined for the purposes of subdivision a.1 of Division E of Part I of the Federal Act; ("revenu rajusté")

   6.  The definition of "C" in subsection 99 (3) of the Act is repealed and the following substituted:

  "C"  is the greater of $4,000 and the individual's adjusted income for the year.

   7.  Subsections 100 (4) and (5) of the Act are repealed and the following substituted:

Amount for purposes of cl. (3) (a)

   (4)  Subject to subsection (6), the amount for the purposes of clause (3) (a) is the lesser of $1,125 and the amount, if any, calculated using the formula,

(A + B) – [0.04 × (C – $22,000)]

in which,

  "A"  is the individual's property tax credit equal to the sum of,

         (a)  the lesser of $625 and the individual's occupancy cost for the year, and

         (b)  an amount equal to 10 per cent of the individual's occupancy cost for the year,

  "B"  is the individual's sales tax credit equal to the sum of,

         (a)  $100 in respect of the individual, and

         (b)  $50 in respect of every qualified dependant of the individual, and

  "C"  is the greater of $22,000 and the individual's adjusted income for the year.

Amount for purposes of cl. (3) (b)

   (5)  Subject to subsection (6), the amount for the purposes of clause (3) (b) is the lesser of $1,125 and the amount, if any, calculated using the formula,

(A + B) – [0.04 × (C – $24,300)]

in which,

  "A"  is the individual's property tax credit equal to the sum of,

         (a)  the lesser of $625 and the individual's occupancy cost for the year, and

         (b)  an amount equal to 10 per cent of the individual's occupancy cost for the year,

  "B"  is the individual's sales tax credit equal to the sum of,

         (a)  $100 in respect of the individual,

         (b)  $100 in respect of the individual's qualifying spouse or qualifying common-law partner, and

          (c)  $50 in respect of every qualified dependant of the individual, and

  "C"  is the greater of $24,300 and the individual's adjusted income for the year.

Reduction in amount of property tax credit

   (6)  If an individual receives a grant under section 104.1 for the year, the amount determined in respect of the senior for the year as "A" in subsection (4) or as "A" in subsection (5), as the case may be, is reduced by the amount, if any, by which the sum of "A" and "D" exceeds the greater of "A" and "E" where,

  "A"  is the amount determined in respect of the senior for the year as "A" in subsection (4) or as "A" in subsection (5), as the case may be, before the application of this subsection,

  "D"  is the amount of the grant under section 104.1 which the individual received for the year, and

  "E"  is the amount of the individual's occupancy cost for the year as determined for the purposes of this Division.

   8.  (1)  Subsection 104.1 (1) of the Act is amended by adding the following definition:

"municipal tax" means,

  (a)  taxes for municipal and school purposes that are levied in respect of real property in Ontario,

  (b)  taxes levied for local improvements to real property in Ontario,

   (c)  taxes levied under the Provincial Land Tax Act, 2006 or the Local Roads Boards Act, and

  (d)  such other type of tax, charge or rate as may be prescribed by the Minister; ("impôts municipaux")

   (2)  The definition of "property tax" in subsection 104.1 (1) of the Act is repealed and the following substituted:

"property tax" means municipal tax or a type of payment prescribed by the Minister. ("impôt foncier")

   (3)  Paragraphs 5 and 6 of subsection 104.1 (2) of the Act are repealed and the following substituted:

    5.  The individual or his or her cohabiting spouse or common-law partner,

            i.  owned and occupied a designated principal residence on December 31 of the previous taxation year, or

           ii.  occupied a designated principal residence on December 31 of the previous taxation year that is prescribed by the Minister or that satisfies such conditions as may be prescribed by the Minister.

    6.  The individual was not confined to a prison or similar institution on December 31 of the previous taxation year and is not confined to a prison or similar institution for the first 179 days in the taxation year.

   (4)  Subsection 104.1 (3) of the Act is amended by striking out the portion before the formula and substituting the following:

Amount of senior homeowners' property tax grant

   (3)  An individual who is an eligible senior for a taxation year and complies with the requirements of this section is deemed to have made an overpayment on account of tax payable under this Act in the amount calculated using the following formula and is entitled to a senior homeowners' property tax grant for the taxation year equal to that amount:

.     .     .     .     .

   (5)  Section 104.1 of the Act is amended by adding the following subsection:

Exception

   (4.1)  An eligible senior shall not apply for a grant under this section at a time when the senior is confined to a prison or similar institution.

   (6)  Subsection 104.1 (10) of the Act is repealed and the following substituted:

Death

   (10)  The following rules apply if an eligible senior is entitled to a grant under this section for a taxation year but dies before applying for the grant or after applying for the grant and before receiving it:

    1.  If the eligible senior had no cohabiting spouse or common-law partner entitled to the grant for the year, the eligible senior's estate may apply for the grant, if the senior died before applying for it, and may receive and retain the grant for which either it or the eligible senior applied for the year.

    2.  If the eligible senior leaves a surviving co-habiting spouse or common-law partner entitled to the grant for the year, the co-habiting spouse or common-law partner, or his or her estate if he or she subsequently dies, may receive and retain the grant if the eligible senior applied for it before his or her death.

   (7)  Subsection 104.1 (15) of the Act is amended by striking out "under paragraph 2 of subsection (10) or subsection (13)" and substituting "under subsection (13)".

   (8)  Section 104.1 of the Act is amended by adding the following subsection:

No interest payable

   (17)  No interest is payable on the amount of a grant paid under this section or repayable by an individual under this section.

   9.  Subsection 137 (1) of the Act is repealed and the following substituted:

Withholding

   (1)  Subsections 153 (1), (1.1), (1.2), (1.4) and (3) of the Federal Act apply for the purposes of this Act.

Commencement

   10.  (1)  Subject to subsections (2), (3), (4) and (5), this Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2008 (No. 2) receives Royal Assent.

Same

   (2)  Sections 2, 5, 6, 7 and 8 come into force on January 1, 2009.

Same

   (3)  Section 3 is deemed to have come into force on January 1, 2008.

Same

   (4)  Section 4 is deemed to have come into force on February 26, 2008.

Same

   (5)  Section 9 is deemed to have come into force on June 18, 2008.

Schedule v
amendments to various acts consequential to the enactment of the Taxation Act, 2007

Business Corporations Act

   1.  Subsection 241 (1) of the Business Corporations Act is amended by adding the following paragraph:

  6.1  Taxation Act, 2007.

Community Small Business Investment Funds Act

   2.  (1)  The definition of "permanent establishment" in subsection 1 (1) of the Community Small Business Investment Funds Act is repealed and the following substituted:

"permanent establishment" means,

  (a)  in respect of a corporation, a permanent establishment as defined by subsection 1 (1) of the Taxation Act, 2007, or

  (b)  in respect of a partnership, a permanent establishment determined under subsection 1 (1) of the Taxation Act, 2007 as if the partnership were a corporation; ("établissement stable")

   (2)  Clause (b) of the definition of "qualifying corporation" in subsection 1 (1) of the Act is amended by adding "or subdivision b of Division E of Part III of the Taxation Act, 2007" after "section 66.1 of the Corporations Tax Act" at the end.

   (3)  Subsection 13 (3) of the Act is amended by striking out "under the Income Tax Act or the Income Tax Act (Canada)" and substituting "under the Income Tax Act, the Taxation Act, 2007 or the Income Tax Act (Canada)".

   (4)  Clause (b) of the definition of "eligible investor" in subsection 18.2 (1) of the Act is amended by adding "or subdivision b of Division E of Part III of the Taxation Act, 2007" after "section 66.1 of the Corporations Tax Act" at the end.

   (5)  The definition of "qualifying financial institution" in subsection 18.2 (1) of the Act is amended by adding "or subdivision b of Division E of Part III of the Taxation Act, 2007" after "section 66.1 of the Corporations Tax Act" at the end.

   (6)  Clause (e) of the definition of "within the community" in subsection 18.2 (1) of the Act is amended by striking out "section 43.9 of the Corporations Tax Act" in the portion before subclause (i) and substituting "section 97 of the Taxation Act, 2007".

   (7)  Paragraph 5.1 of subsection 18.3 (1) of the Act is amended by striking out "section 43.9 of the Corporations Tax Act" and substituting "section 97 of the Taxation Act, 2007".

   (8)  The definition of "eligible research institute" in subsection 18.11 (1) of the Act is amended by striking out "subsection 43.9 (29) of the Corporations Tax Act" and substituting "subsection 97 (27) of the Taxation Act, 2007".

   (9)  Subsection 24 (1) of the Act is amended by striking out "the Income Tax Act or the Corporations Tax Act" and substituting "the Income Tax Act, the Corporations Tax Act or the Taxation Act, 2007".

   (10)  Subsection 24 (2) of the Act is amended by striking out "the Income Tax Act or the Corporations Tax Act" and substituting "the Income Tax Act, the Corporations Tax Act or the Taxation Act, 2007".

   (11)  Subsection 25 (3) of the Act is amended by adding "or the Taxation Act, 2007" after "the Income Tax Act" at the end.

   (12)  Paragraph 7.0.1 of subsection 25 (4) of the Act is amended by striking out "the Income Tax Act" in the portion before subparagraph i and substituting "the Income Tax Act or the Taxation Act, 2007".

   (13)  Paragraph 7.1 of subsection 25 (4) of the Act is amended by striking out "Income Tax Act" in the portion before subparagraph i and substituting "Taxation Act, 2007".

   (14)  Paragraph 7.2 of subsection 25 (4) of the Act is amended by striking out "Income Tax Act" in the portion before subparagraph i and substituting "Taxation Act, 2007".

   (15)  Paragraph 8.0.1 of subsection 25 (4) of the Act is amended by striking out "Income Tax Act" in the portion before subparagraph i and substituting "Income Tax Act or the Taxation Act, 2007".

   (16)  Paragraph 8.1 of subsection 25 (4) of the Act is amended by striking out "Income Tax Act" in the portion before subparagraph i and substituting "Taxation Act, 2007".

   (17)  Paragraph 8.2 of subsection 25 (4) of the Act is amended by striking out "Income Tax Act" in the portion before subparagraph i and substituting "Taxation Act, 2007".

   (18)  Subsection 25 (4.2) of the Act is amended by adding "or the Taxation Act, 2007" after "the Corporations Tax Act" in the portion before the formula.

   (19)  The definition of "B" in subsection 25 (4.2) of the Act is amended by adding "or subdivision b of Division E of Part III of the Taxation Act, 2007" after "section 66.1 of the Corporations Tax Act" at the end.

   (20)  Clauses 25 (7) (b) and (c) of the Act are repealed and the following substituted:

  (b)  unless permitted by the regulations, the Class A shares to which the tax credit relates do not constitute a type of security that entitles the holder, in respect of the acquisition of those shares,

           (i)  to claim against tax otherwise payable a tax credit under the Income Tax Act, the Income Tax Act (Canada), the Corporations Tax Act, or the Taxation Act, 2007, other than a labour sponsored investment fund corporation tax credit under the Income Tax Act, the Taxation Act, 2007 or section 127.4 of the Income Tax Act (Canada),

          (ii)  to claim a deduction from income under the Income Tax Act, the Income Tax Act (Canada), the Corporations Tax Act, or the Taxation Act, 2007, or

         (iii)  to receive any other financial assistance from any government, municipality or public authority;

   (c)  no tax credit has been previously allowed under the Income Tax Act, the Corporations Tax Act or the Taxation Act, 2007 in respect of the shares to which the tax credit certificate relates;

   (21)  Subsection 27 (8) of the Act is amended by striking out "under the Income Tax Act" and substituting "under the Income Tax Act, the Taxation Act, 2007".

   (22)  Clause (b) of the definition of "P" in subsection 28.1 (1) of the Act is amended by adding "or subdivision b of Division E of Part III of the Taxation Act, 2007" after "section 66.1 of the Corporations Tax Act".

   (23)  Subsection 29 (1) of the Act is amended by striking out "under Part II of the Corporations Tax Act" and substituting "under Part II of the Corporations Tax Act or Part III of the Taxation Act, 2007".

Electricity Act, 1998

   3.  Section 2 of the Electricity Act, 1998 is amended by adding the following subsection:

Corporations Tax Act references

   (8)  Any reference to the Corporations Tax Act in this Act shall be deemed to be a reference to that Act as it applied to corporations for taxation years under that Act ending on or before December 31, 2008.

Limitations Act, 2002

   4.  The Table in the Schedule to the Limitations Act, 2002 is amended by adding the following:

Taxation Act, 2007

section 139

Mining Tax Act

   5.  Section 1 of the Mining Tax Act is amended by adding the following subsection:

Corporations Tax Act references

   (4)  Any reference to the Corporations Tax Act in this Act shall be deemed to be a reference to that Act as it applied to corporations for taxation years under that Act ending on or before December 31, 2008.

Municipal Extra-Territorial Tax Act

   6.  Clause 12 (a) of the Municipal Extra-Territorial Tax Act is repealed and the following substituted:

  (a)  a corporation tax, for the purposes of section 16 of the Corporations Tax Act as that section read on December 31, 2008; and

Ontario Disability Support Program Act, 1997

   7.  (1)  Clause 53 (2) (b) of the Ontario Disability Support Program Act, 1997 is amended by striking out "the Income Tax Act, the Income Tax Act (Canada)" and substituting "the Income Tax Act, the Taxation Act, 2007, the Income Tax Act (Canada)".

   (2)  Clause 53 (2) (c) of the Act is amended by striking out "the Income Tax Act, the Income Tax Act (Canada)" and substituting "the Income Tax Act, the Taxation Act, 2007, the Income Tax Act (Canada)".

   (3)  Clause 56 (3) (b) of the Act is amended by striking out "the Income Tax Act or the Income Tax Act (Canada)" and substituting "the Income Tax Act, the Taxation Act, 2007 or the Income Tax Act (Canada)".

Ontario Guaranteed Annual Income Act

   8.  Subsection 10 (2) of the Ontario Guaranteed Annual Income Act is amended by adding "or section 84 of the Taxation Act, 2007" after "subsection 8 (10) of the Income Tax Act" in the portion after clause (b).

Ontario Works Act, 1997

   9.  (1)  Clause 71 (2) (b) of the Ontario Works Act, 1997 is amended by striking out "the Income Tax Act, the Income Tax Act (Canada)" and substituting "the Income Tax Act, the Taxation Act, 2007, the Income Tax Act (Canada)".

   (2)  Clause 71 (2) (c) of the Act is amended by striking out "the Income Tax Act, the Income Tax Act (Canada)" and substituting "the Income Tax Act, the Taxation Act, 2007, the Income Tax Act (Canada)".

   (3)  Clause 72 (2) (b) of the Act is amended by striking out "the Income Tax Act, the Income Tax Act (Canada)" and substituting "the Income Tax Act, the Taxation Act, 2007, the Income Tax Act (Canada)".

   (4)  Clause 72 (2) (c) of the Act is amended by striking out "the Income Tax Act, the Income Tax Act (Canada)" and substituting "the Income Tax Act, the Taxation Act, 2007, the Income Tax Act (Canada)".

   (5)  Clause 75 (3) (b) of the Act is amended by striking out "the Income Tax Act or the Income Tax Act (Canada)" and substituting "the Income Tax Act, the Taxation Act, 2007 or the Income Tax Act (Canada)".

Proceedings Against the Crown Act

   10.  Subsection 2 (1) of the Proceedings Against the Crown Act is amended by adding "the Taxation Act, 2007" after "the Retail Sales Tax Act".

Social Housing Reform Act, 2000

   11.  (1)  Clause 163 (2) (b) of the Social Housing Reform Act, 2000 is amended by striking out "the Income Tax Act, the Income Tax Act (Canada)" and substituting "the Income Tax Act, the Taxation Act, 2007, the Income Tax Act (Canada)".

   (2)  Clause 163 (2) (c) of the Act is amended by striking out "the Income Tax Act, the Income Tax Act (Canada)" and substituting "the Income Tax Act, the Taxation Act, 2007, the Income Tax Act (Canada)".

   (3)  Clause 164 (2) (b) of the Act is amended by striking out "the Income Tax Act, the Income Tax Act (Canada)" and substituting "the Income Tax Act, the Taxation Act, 2007, the Income Tax Act (Canada)".

   (4)  Clause 164 (2) (c) of the Act is amended by striking out "the Income Tax Act, the Income Tax Act (Canada)" and substituting "the Income Tax Act, the Taxation Act, 2007, the Income Tax Act (Canada)".

Commencement

   12.  This Schedule comes into force on January 1, 2009.

schedule w
tobacco tax act

   1.  (1)  Subsection 2 (1.8) of the Tobacco Tax Act is amended by striking out "the importer or manufacturer" and substituting "a wholesaler, importer or manufacturer".

   (2)  Subsection 2 (7.1) of the Act is repealed and the following substituted:

Penalty

   (7.1)  Every person who knowingly fails to pay tax as imposed by this section at the time the person is required to do so shall pay a penalty, when assessed for it, equal to the sum of,

  (a)  three times the amount of the tax payable by that person; and

  (b)  the amount of,

           (i)  $500 if the person has not been previously assessed a penalty under this subsection or under subsection 24 (12), 29 (3) or (4), 29.1 (6) or (7) or 34 (2),

          (ii)  $2,500 if the person has previously been assessed a penalty under this subsection or under subsection 24 (12), 29 (3) or (4), 29.1 (6) or (7) or 34 (2), but has not been previously assessed more than one penalty in total,

         (iii)  $5,000 if the person has previously been assessed more than one penalty in total under this subsection and under subsection 24 (12), 29 (3) or (4), 29.1 (6) or (7) or 34 (2).

   2.  Subsection 5 (11.1) of the Act is repealed and the following substituted:

Penalty on unregistered importer

   (11.1)  Every person who operates as an importer in Ontario without holding a registration certificate issued under this section shall pay a penalty, when assessed for it, equal to the sum of,

  (a)  three times the amount of the tax that would be payable under section 2 if the tobacco imported into Ontario by the person during the period when the person did not hold a subsisting registration certificate had been sold to a consumer liable to pay tax under this Act; and

  (b)  the amount of,

           (i)  $500 if this is the first penalty assessed against the person under this Act for operating as an importer in Ontario without holding a subsisting registration certificate under this section,

          (ii)  $2,500 if the person has been assessed a penalty under this Act only once before for operating as an importer in Ontario without holding a subsisting registration certificate under this section, or

         (iii)  $5,000 if the person has been assessed a penalty under this Act at least twice before for operating as an importer in Ontario without holding a subsisting registration certificate under this section.

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

Equipment for manufacturing cigarettes

   7.0.1  (1)  Every person who imports into Ontario or possesses in Ontario equipment for manufacturing cigarettes is deemed to be a manufacturer for the purposes of subsections 7 (1), (2) and (3).

Offence

   (2)  Every person who imports into Ontario or possesses in Ontario equipment for manufacturing cigarettes without holding a registration certificate issued under subsection 7 (1) or who, being the holder of a certificate issued under subsection 7 (1), contravenes any condition or restriction contained in the certificate or fails to comply with subsection 7 (3) is guilty of an offence and on conviction is liable,

  (a)  to a fine of not less than $1,000 and not more than $10,000; and

  (b)  in respect of a conviction for importing into Ontario or possessing in Ontario equipment for manufacturing cigarettes without holding a registration certificate issued under subsection 7 (1), to an additional fine of not less than three times the amount of tax that would be payable under section 2 had the tobacco manufactured by the person during the period when the person did not hold a certificate been sold to a consumer liable to pay tax under this Act.

Penalty, failure to register

   (3)  Every person who imports into Ontario or possesses in Ontario equipment for manufacturing cigarettes without holding a registration certificate issued under subsection 7 (1) shall pay to the Minister a penalty, when assessed therefor, in an amount equal to the tax that would be payable under this Act on the volume of tobacco that the person manufactured during the period that the person did not hold a registration certificate, calculated as if that tobacco had been purchased by a consumer.

Seizure of equipment

   (4)  A person authorized by the Minister under subsection 23 (1) may, on an inspection under that subsection and without a warrant, seize, impound, hold and dispose of equipment for manufacturing cigarettes if the authorized person has reasonable and probable grounds to believe that the person in possession of the equipment does not hold a registration certificate issued under subsection 7 (1).

Forfeiture of equipment to the Crown

   (5)  Equipment seized under subsection (4) is forfeited to the Crown in right of Ontario to be disposed of as the Minister directs unless, within 30 days following the seizure, the person from whom the equipment was seized, or the owner of the equipment, applies to the Superior Court of Justice to establish the right to possession of the equipment.

Right to possession of equipment

   (6)  For the purposes of an application under subsection (5), the applicant has a right to possession of the equipment only if, at the time the seizure is made, the applicant holds a registration certificate issued under subsection 7 (1).

Disposal pending final determination by court

   (7)  If a final order is not made within 60 days after the filing of an application under subsection (5), the Minister may dispose of the equipment and retain the proceeds, if any, pending the determination of the application.

Order

   (8)  If the court is satisfied on an application under subsection (5) that the applicant held a registration certificate issued under subsection 7 (1) at the time the seizure was made, the court may order that the equipment be returned to the applicant or that the proceeds of sale of the equipment be paid to the applicant.

Forfeiture after dismissal of application

   (9)  On dismissal of an application under subsection (5) and the expiry of the appeal period provided for it, the equipment is forfeited to the Crown in right of Ontario to be disposed of as the Minister directs.

Proceeds of sale

   (10)  If a sale of the equipment is authorized under subsection (5) or (9), or if the proceeds of a sale are retained under subsection (7) and the application is dismissed, the proceeds of the sale remaining after payment of the costs incurred by the Minister in seizing, storing and disposing of the equipment are to be paid into the Consolidated Revenue Fund.

   4.  Subsection 20.2 (3) of the Act is repealed and the following substituted:

Penalty, wholesaler

   (3)  Every wholesaler who is found to have delivered or caused to be delivered tobacco to a particular place owned or occupied by a retail dealer in respect of which a temporary prohibition under section 20 was in effect shall pay a penalty, when assessed for it, equal to the sum of,

  (a)  three times the amount of tax that would be payable under this Act if the tobacco that the wholesaler delivered or caused to be delivered to the particular place during the period the prohibition was in effect had been sold to a consumer; and

  (b)  the amount of,

           (i)  $1,000 if this is the first penalty assessed against the wholesaler under this subsection,

          (ii)  $2,500 if this is the second penalty assessed against the wholesaler under this subsection,

         (iii)  $5,000 if this is the third penalty assessed against the wholesaler under this subsection, or

         (iv)  $10,000 if the wholesaler has been assessed a penalty under this subsection more than three times before.

   5.  Clause 23 (1) (b.1) of the Act is repealed and the following substituted:

(b.1) examine any inventory of cigarettes, any individual packages of cigarettes in any inventory and any equipment for manufacturing cigarettes that may be in the premises or place; and

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

Seizure of untaxed cigars and other tobacco

Definition

   23.1.1  (1)  In this section,

"other tobacco" means tobacco other than cigarettes and cigars.

Seizure of untaxed cigars and other tobacco

   (2)  If, on an inspection under subsection 23 (1), a person authorized by the Minister discovers that a wholesaler or retail dealer is in possession of cigars or other tobacco, and the person has reasonable and probable grounds to believe that the possession is contrary to the provisions of subsection 29.1 (2), the person may, subject to subsection (3), seize, impound, hold and dispose of the cigars or other tobacco.

Application to the court

   (3)  Cigars or other tobacco seized under subsection (2) are forfeited to Her Majesty to be disposed of as the Minister directs unless, within 30 days following the seizure, the person from whom the cigars or other tobacco were seized, or the owner of the cigars or other tobacco, applies to the Superior Court of Justice to establish the right to possession of the cigars or other tobacco.

Right to possession of cigars and other tobacco

   (4)  For the purposes of an application under subsection (3), the applicant has a right to possession of the cigars or other tobacco if, at the time the seizure is made,

  (a)  the applicant was in possession or control of not more than 50 cigars or one kilogram of other tobacco for the purposes of resale;

  (b)  the applicant is permitted under this Act or the regulations to have in his or her possession cigars or other tobacco for which he or she cannot prove that an amount equal to the tax that would be payable under section 2 has been paid; or

   (c)  the applicant has paid an amount equal to the tax payable under section 2 on the cigars or other tobacco to the person from whom the cigars or tobacco were obtained.

Disposal pending final determination by court

   (5)  If a final order is not made within 60 days after the filing of an application under subsection (3), the Minister may dispose of the cigars or other tobacco and retain the proceeds, if any, pending the determination of the application.

Order

   (6)  If the court is satisfied on an application under subsection (3) that the applicant has a right to possession of the cigars or other tobacco, the court may order that the cigars or other tobacco be returned to the applicant or that the proceeds of the sale of the cigars or other tobacco be paid to the applicant.

Forfeiture after dismissal of application

   (7)  On dismissal of an application under subsection (3) and the expiry of the appeal period provided for it, the cigars or other tobacco are forfeited to Her Majesty to be disposed of as the Minister directs.

Proceeds of sale

   (8)  If a sale of cigars or other tobacco is authorized under subsection (3) or (7), or if the proceeds of a sale are retained under subsection (5) and the application is dismissed, the proceeds of the sale remaining after payment of the costs incurred by the Minister in seizing, storing and disposing of the cigars or other tobacco shall be paid into the Consolidated Revenue Fund.

   7.  Subsection 24 (12) of the Act is repealed and the following substituted:

Penalty

   (12)  Every person from whom tobacco is seized under subsection (3) shall pay a penalty, when assessed for it, equal to the sum of,

  (a)  three times the amount of tax that would be payable under section 2 if the seized tobacco had been sold to a consumer liable to pay tax under this Act; and

  (b)  the amount of,

           (i)  $500 if the person has not been previously assessed a penalty under this subsection or under subsection 2 (7.1), 29 (3) or (4), 29.1 (6) or (7) or 34 (2),

          (ii)  $2,500 if the person has previously been assessed a penalty under this subsection or under subsection 2 (7.1), 29 (3) or (4), 29.1 (6) or (7) or 34 (2), but has not been previously assessed more than one penalty in total under this subsection and those subsections,

         (iii)  $5,000 if the person has previously been assessed more than one penalty in total under this subsection or subsection 2 (7.1), 29 (3) or (4), 29.1 (6) or (7) or 34 (2).

   8.  (1)  Subsection 29 (1.1) of the Act is amended by striking out "clause (1) (b)" and substituting "subsection (1)".

   (2)  Subsections 29 (3) and (4) of the Act are repealed and the following substituted:

Penalty

   (3)  Every person who, except as permitted under this Act or the regulations, sells or offers for sale or keeps for sale in Ontario unmarked cigarettes shall pay a penalty, when assessed for it, on all of the unmarked cigarettes sold, offered for sale or kept for sale, equal to the sum of,

  (a)  three times the amount of tax that would be payable under section 2 if the cigarettes had been sold to a consumer liable to pay tax under this Act; and

  (b)  the amount of,

           (i)  $500 if the person has not previously been assessed a penalty under this subsection or subsection (4) or under subsection 2 (7.1), 24 (12), 29.1 (6) or (7) or 34 (2),

          (ii)  $2,500 if the person has previously been assessed a penalty under this subsection or subsection (4) or under subsection 2 (7.1), 24 (12), 29.1 (6) or (7) or 34 (2), but has not been previously assessed more than one penalty in total under this subsection and those subsections,

         (iii)  $5,000 if the person has previously been assessed more than one penalty in total under this subsection or subsection (4) or under subsection 2 (7.1), 24 (12), 29.1 (6) or (7) or 34 (2).

Penalty

   (4)  Every person who, except as permitted under this Act or the regulations, has in the person's possession more than 200 unmarked cigarettes or has in the person's possession or has purchased or received any number of unmarked cigarettes for purposes of sale shall pay a penalty, when assessed for it, equal to the sum of,

  (a)  three times the amount of tax that would be payable under section 2 if the cigarettes had been sold to a consumer liable to pay tax under this Act; and

  (b)  the amount of,

           (i)  $500 if the person has not been previously assessed a penalty under this subsection or subsection (3) or under subsection 2 (7.1), 24 (12), 29.1 (6) or (7) or 34 (2),

          (ii)  $2,500 if the person has previously been assessed a penalty under this subsection or subsection (3) or under subsection 2 (7.1), 24 (12), 29.1 (6) or (7) or 34 (2), but has not been previously assessed more than one penalty in total under this subsection and those subsections,

         (iii)  $5,000 if the person has previously been assessed more than one penalty in total under this subsection or subsection (3) or under subsection 2 (7.1), 24 (12), 29.1 (6) or (7) or 34 (2).

   9.  (1)  Subsection 29.1 (2) of the Act is repealed and the following substituted:

Possession of untaxed cigars and other tobacco

   (2)  No person shall, unless permitted to do so under this Act or the regulations,

  (a)  have in his or her possession more than 50 cigars or more than one kilogram of other tobacco for which the person cannot prove that an amount equal to the tax that would be payable under section 2 has been paid to the person or entity from whom the person obtained the cigars or tobacco; or

  (b)  have in his or her possession for the purposes of resale, or purchase or receive for the purposes of resale, any cigars or other tobacco for which the person cannot prove that an amount equal to the tax that would be payable under section 2 has been paid to the person or entity from whom the cigars or other tobacco were obtained.

Seizure of cigars or other tobacco

   (2.1)  If a person authorized by the Minister has reasonable and probable grounds to believe that a person is in possession of cigars or other tobacco contrary to the provisions of subsection (2), the person may, subject to subsection (2.2), stop and detain the person and may seize, impound, hold and dispose of the cigars and other tobacco.

Application

   (2.2)  Cigars or other tobacco seized under subsection (2.1) are forfeited to Her Majesty to be disposed of as the Minister directs unless, within 30 days following the seizure, the person from whom the cigars or other tobacco were seized, or the owner of the cigars or other tobacco, applies to the Superior Court of Justice to establish a right to possession of the cigars or other tobacco.

Right to possession of cigars or other tobacco

   (2.3)  For the purposes of an application under subsection (2.2), the applicant has a right to possession of the cigars or other tobacco if, at the time the seizure was made,

  (a)  the applicant was in possession or control of not more than 50 cigars or one kilogram of other tobacco;

  (b)  the applicant was permitted under this Act or the regulations to have in his or her possession cigars or other tobacco for which he or she cannot prove the tax that would be payable under section 2 has been paid; or

   (c)  the applicant had paid the tax payable under section 2 on the cigars or other tobacco.

Disposal pending final determination of the court

   (2.4)  If a final order under this section is not made not more than 60 days after the filing of the application under subsection (2.2), the Minister may dispose of the cigars or other tobacco and retain the proceeds, if any, pending the determination of the application.

Order

   (2.5)  If the court is satisfied on an application under subsection (2.2) that the applicant has a right to possession of the cigars or other tobacco, the court may order that the cigars or other tobacco be returned to the applicant or that the proceeds of the sale of the cigars or other tobacco be paid to the applicant.

Forfeiture after dismissal of application

   (2.6)  On dismissal of an application under subsection (2.2) and the expiry of the appeal period provided for it, the cigars or other tobacco are forfeited to Her Majesty to be disposed of as the Minister directs.

Proceeds of sale

   (2.7)  If a sale of cigars or other tobacco is authorized under subsection (2.2) or (2.6), or if the proceeds of a sale are retained under subsection (2.4) and the application is dismissed, the proceeds of the sale remaining after payment of the costs incurred by the Minister in seizing, storing and disposing of the cigars or other tobacco shall be paid into the Consolidated Revenue Fund.

   (2)  Subsections 29.1 (6) and (7) of the Act are repealed and the following substituted:

Penalty, selling

   (6)  Every person who, except as permitted under this Act or the regulations, sells or offers or keeps for sale in Ontario cigars or other tobacco for which the person cannot prove that an amount equal to the tax that would be payable under section 2 has been paid to the person or entity from whom the cigars or other tobacco were obtained shall pay a penalty, when assessed for it, in respect of all the cigars and other tobacco sold or offered or kept for sale, equal to the sum of,

  (a)  three times the amount of tax that would have been payable under section 2 if the cigars or other tobacco had been sold to a consumer liable to pay tax under this Act; and

  (b)  the amount of,

           (i)  $500 if the person has not been previously assessed a penalty under this subsection or subsection (7) or under subsection 2 (7.1), 24 (12), 29 (3) or (4) or 34 (2),

          (ii)  $2,500 if the person has previously been assessed a penalty under this subsection or subsection (7) or under subsection 2 (7.1), 24 (12), 29 (3) or (4) or 34 (2), but has not been previously assessed more than one penalty in total under this subsection and those subsections,

         (iii)  $5,000 if the person has previously been assessed more than one penalty in total under this subsection or subsection (7) or under subsection 2 (7.1), 24 (12), 29 (3) or (4) or 34 (2).

Penalty, possession

   (7)  Every person who, except as permitted under this Act or the regulations,

  (a)  has in his or her possession more than 50 cigars or more than one kilogram of other tobacco for which the person cannot prove that an amount equal to the tax that would be payable under section 2 has been paid to the person or entity from whom the cigars or other tobacco were obtained; or

  (b)  has in his or her possession for the purposes of sale or has received or purchased for the purposes of sale any amount of cigars or other tobacco for which the person cannot prove that an amount equal to the tax that would be payable under section 2 has been paid to the person or entity from whom the cigars or other tobacco were obtained,

shall pay a penalty, when assessed for it, equal to the amount determined under subsection (7.1).

Same

   (7.1)  The amount of the penalty under subsection (7) is the sum of,

  (a)  three times the amount of tax that would have been payable under section 2 if the cigars or other tobacco had been sold to a consumer liable to pay tax under this Act; and

  (b)  the amount of,

           (i)  $500 if the person has not been previously assessed a penalty under subsection (6) or (7) or under subsection 2 (7.1), 24 (12), 29 (3) or (4) or 34 (2),

          (ii)  $2,500 if the person has previously been assessed a penalty under subsection (6) or (7) or under subsection 2 (7.1), 24 (12), 29 (3) or (4) or 34 (2), but has not been previously assessed more than one penalty in total under this subsection and those subsections,

         (iii)  $5,000 if the person has previously been assessed more than one penalty in total under subsection (6) or (7) or under subsection 2 (7.1), 24 (12), 29 (3) or (4) or 34 (2).

   10.  Subsection 34 (2) of the Act is repealed and the following substituted:

Penalty

   (2)  Every holder of a permit to mark or stamp cigarettes and every dealer who possesses cigarettes in a package, carton or case that has previously been used as a marked package, carton or case under this Act or the regulations or has been fraudulently marked shall pay a penalty equal to,

  (a)  if this is the first time a penalty is assessed against the holder of the permit or the dealer under this subsection, the sum of,

           (i)  three times the amount of tax that would be payable under section 2 if the cigarettes had been sold to a consumer liable to pay tax under this Act, and

          (ii)  the amount of,

                 (A)  $500 if the person has not been previously assessed a penalty under this subsection or under subsection 2 (7.1), 24 (12), 29 (3) or (4) or 29.1 (6) or (7),

                 (B)  $2,500 if the person has previously been assessed a penalty under subsection 2 (7.1), 24 (12), 29 (3) or (4) or 29.1 (6) or (7), but has not been previously assessed more than one penalty in total under those subsections,

                 (C)  $5,000 if the person has previously been assessed more than one penalty in total under subsection 2 (7.1), 24 (12), 29 (3) or (4) or 29.1 (6) or (7); or

  (b)  if a penalty has been previously assessed against the holder of the permit or the dealer under this subsection, the sum of,

           (i)  five times the amount of tax that would be payable under section 2 if the cigarettes had been sold to a consumer liable to pay tax under this Act, and

          (ii)  the amount of,

                 (A)  $2,500 if the person has previously been assessed not more than a penalty in total under this subsection or subsection 2 (7.1), 24 (12), 29 (3) or (4) or 29.1 (6) or (7), or

                 (B)  $5,000 if the person has previously been assessed more than one penalty in total under this subsection or subsection 2 (7.1), 24 (12), 29 (3) or (4) or 29.1 (6) or (7).

Commencement

   11.  This Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2008 (No. 2) receives Royal Assent.

EXPLANATORY NOTE

This Explanatory Note was written as a reader's aid to Bill 114 and does not form part of the law.  Bill 114 has been enacted as Chapter 19 of the Statutes of Ontario, 2008.

Schedule A
assessment Act

Subsection 40 (3) of the Assessment Act provides that for land in certain property classes, a property owner must request the Municipal Property Assessment Corporation ("MPAC") to reconsider the land's assessment before appealing to the Assessment Review Board.  Subsection 2 (2) of the Act is amended by adding clause (d.7), which allows the Minister of Finance to prescribe land to which this precondition does not apply.

Subsection 3 (1) of the Act is amended by adding paragraph 7.  The new paragraph adds an exemption from taxation for land that is owned, used and occupied by a care home.  To qualify, the operator of the care home must currently operate or previously have operated an approved charitable home for the aged and be a registered charity.

Currently, paragraph 20 of subsection 3 (1) of the Act provides an exemption for minerals in, on or under land with some exceptions.  The exceptions are repealed.

Subsection 3 (1) of the Act is amended by adding paragraph 22.1.  The new paragraph adds an exemption from taxation for a garden suite, as defined under the Planning Act, that is temporarily being used as the personal residence of a person who is at least 65 years of age if the landowner also has his or her personal residence on the land and is a family member of the person residing in the garden suite.

Currently, section 19.1 of the Act provides for adjustments to the current value of land so that eligible increases to the current value are phased in over four years.  The section is amended to require MPAC to revise the phase-in calculation if a change is made to the current value of the land, and to correct arithmetical errors that may be made in calculations under the section for the current and subsequent taxation years.  MPAC must give notice of these changes.

Currently, section 31 of the Act provides that MPAC shall deliver a new notice of assessment any time there has been a change of information on the assessment roll relating to a property.  The section is amended to provide that a notice is not required if the only change relates to the phase-in of an eligible assessment increase under section 19.1 of the Act.

Currently, subsections 32 (1) and (1.1) of the Act provide circumstances in which MPAC may correct the assessment or classification of a property.  Amendments to these subsections clarify that these corrections may also be made in respect of omitted or supplementary assessments that have been made in respect of the property.  Subsections 32 (2), (3) and (4) of the Act are amended to remove a timing restriction on MPAC's ability to implement statutory and regulatory amendments. Subsection 32 (5) of the Act is repealed because it is spent.

Currently, subsection 32 (2) sets out procedures if the classification of land changes as a result of a change in the regulations made under section 7.  The subsection is clarified to include regulations made under the Education Act.

Currently, subsection 39 (1) of the Act sets out the officials to whom MPAC must deliver an assessment roll.  The secretary of the board of a local roads area under the Local Roads Boards Act is added to the list.

Section 39.1 of the Act is amended to clarify the types of matters that a property owner may request MPAC to reconsider under the section.  The section is also amended to clarify that property owners have until the later of March 31 of the taxation year and 90 days after the mailing of the notice of an amended assessment to request MPAC to reconsider the amended assessment.

Subsection 40 (8) of the Act is amended to clarify that property owners appealing an amended assessment have until the later of March 31 of the taxation year and 90 days after the mailing of the notice to bring the appeal.

Subsection 40 (12) of the Act, which requires the Assessment Review Board to give notice of hearings, is repealed.  The Statutory Powers Procedure Act continues to govern the matter of notice.  Currently, subsection 40 (26) of the Act provides that, where the Assessment Review Board has not finally disposed of an appeal, subsequent assessments of the same property are also deemed to have been appealed.  The subsection is amended to clarify that these subsequent assessments include assessments under section 32 of the Act.

Schedule b
Commodity Futures Act

The enactment of subsection 60 (9) of the Commodity Futures Act expressly permits an order or a temporary order to be made in respect of a person or company by the Ontario Securities Commission under subsection 60 (1) or (4) of the Act if, in any jurisdiction, the person or company has been convicted of specified types of offences related to commodity futures contracts or options, has been found by a court to have contravened specified types of commodity futures laws, is subject to an order imposing sanctions, conditions, restrictions or requirements that is made by an authority in any jurisdiction responsible for the regulation of commodities and contracts or has agreed with such an authority to be made subject to sanctions, conditions, restrictions or requirements.

Schedule c
Corporations Tax Act

Section 43.3 of the Corporations Tax Act provides for the Ontario innovation tax credit, which is a refundable tax credit available to qualifying corporations that carry on scientific research and experimental development activities in Ontario.  The amendments to section 43.3 of the Act increase the expenditure limit for the tax credit from $2 million to $3 million and extend the taxable income phase-out range from the existing range of $400,000 to $600,000 to a new range of $400,000 to $700,000.  These amendments apply to taxation years ending after February 25, 2008.

Under the Act, any gain realized on the donation of certain publicly traded securities to a registered charity or other qualified donee is deducted in computing a corporation's adjusted net income for corporate minimum tax purposes.  The amendment to subsection 57.4 (1) of the Act similarly excludes from a corporation's adjusted net income for corporate minimum tax purposes any gain realized by the corporation on the exchange of certain securities for publicly traded securities if the corporation donates the publicly traded securities received on the exchange to a registered charity or other qualified donee after February 25, 2008.

Schedule d
education Act

Section 257.11.1 is added to the Education Act.  Subsection 257.11.1 (1) requires the Minister of Finance to pay a levying board on whose behalf the Minister collects taxes for school purposes the difference between the amount that is levied by the board and the amount that is collected by the Minister.  Subsection 257.11.1 (2) deems a payment made under subsection 257.11.1 (1) to be a tax levied under section 2 of the Provincial Land Tax Act, 2006.

Schedule e
Electricity Act, 1998

Section 81 of the Electricity Act, 1998 requires the Financial Corporation to submit an annual report for each fiscal year to the Minister of Finance within 90 days after the end of the fiscal year.  The enactment of subsection 81 (1.1) of the Act permits the Minister of Finance to provide an extension of time for the Financial Corporation to submit its annual report to a day that is not later than the day the Public Accounts for the fiscal year are submitted to the Lieutenant Governor in Council in accordance with subsection 13 (3) of the Ministry of Treasury and Economics Act.

Schedule f
Executive Council Act

Subsection 2 (1) of the Executive Council Act is re-enacted without the list of portfolios.

Subsection 7 (1) of the Act requires a specified level of attendance by ministers of the Crown at Question Period.  Subsection 7 (2) of the Act lists certain kinds of absence that may not be counted for the purposes of subsection 7 (1) of the Act.  International travel related to trade or economic development is added to the list.

Schedule g
Financial Administration Act

Subsection 9 (1) of the Financial Administration Act currently permits refunds to be paid out of the Consolidated Revenue Fund and charged to the appropriate public account.  Subsection 9 (2) of the Act currently authorizes the Lieutenant Governor in Council to make regulations under any other Act to provide for a refund of fees if that other Act imposes fees but does not contain a legislative mechanism to authorize a refund of the fees.

The re-enactment of subsection 9 (1) of the Act authorizes the payment of interest out of the Consolidated Revenue Fund on refunds authorized under any Act, if the payment of the interest is authorized by an Act.  The re-enactment of subsection 9 (2) of the Act authorizes the refund or partial refund out of the Consolidated Revenue Fund of money that was paid to or collected by the government if the money was erroneously paid or collected or was received by the government for a purpose that is not fulfilled, or if Treasury Board considers it appropriate in the circumstances to make the refund or partial refund.  Refunds and partial refunds are to be made in accordance with any directives made by Treasury Board for the purposes of the section.  New subsection 9 (4) of the Act continues the requirement to charge amounts paid out of the Consolidated Revenue Fund to the appropriate accounts.

New section 9.1 of the Act provides that any regulation made under subsection 9 (2) of the Act as that subsection currently reads remains in force and continues to apply until it is revoked, to the extent it does not conflict with a directive of Treasury Board referred to in subsection 9 (3) of the Act.

Schedule h
Fuel Tax Act

Currently, subsection 2 (7) of the Fuel Tax Act prohibits the use of coloured fuel to propel railway equipment that is part of a public transportation system.  The re-enactment of this subsection removes the prohibition. The re-enactment of clause 2 (1) (d) of the Act provides that any fuel used to propel railway equipment that is part of a public transportation system is taxed at the reduced rate of 4.5 cents per litre.  New subsection 4.11 (2.1) of the Act requires railway operators to be registered under the Act as registered consumers.

The re-enactment of subsection 2 (6) of the Act prohibits the use of coloured fuel in motor vehicles and vessels operated principally for pleasure or recreation.  New clause 2 (3) (b) of the Act imposes tax at the rate applicable in respect of clear fuel if fuel that is not clear fuel is placed in a fuel tank of a motor vehicle or vessel used principally for pleasure or recreation.  Section 5 of the Act currently permits the inspection of a fuel tank of a motor vehicle to determine if it contains coloured fuel.  The re-enactment of subsections 5 (1) and (2) of the Act also permits an inspection to determine if coloured fuel is in a fuel tank of a vessel that is used principally for pleasure or recreation.  New subsection 5 (3.1) of the Act provides that it is an offence to have coloured fuel in a fuel tank of a motor vehicle or vessel used for pleasure or recreation.  Amendments to section 27.1 of the Act provide for penalties for placing coloured fuel in a fuel tank of a motor vehicle or vessel used for pleasure or recreation or using coloured fuel in such a vehicle or vessel.

Currently, section 22.1 of the Act provides that for purposes related to the administration of the Act the Minister shall disclose the names and addresses of certain persons designated or registered for the purposes of the Act.  The amendments to that section add persons who are registered consumers under the Act to the list of persons.

Schedule i
Income Tax Act

The re-enactment of the definition of "adjusted income" in subsection 8 (1) of the Income Tax Act adopts for the purposes of the Ontario property and sales tax credits the definition of that term in the Income Tax Act (Canada).  The other amendments to section 8 increase the income threshold to $24,300 for 2008 in the calculation of the property and sales tax credits for seniors who have a qualifying spouse or qualifying common-law partner.

The re-enactment of paragraph 3 of subsection 10 (1) of the Act is a housekeeping amendment to adopt a recently enacted provision of the Income Tax Act (Canada) relating to the time of remittance of amounts paid on account of tax.

Schedule j
Interim Appropriation for 2009-2010 Act, 2008

The Schedule enacts the Interim Appropriation for 2009-2010 Act, 2008 which authorizes expenditures for the fiscal year ending on March 31, 2010 up to specified maximum amounts.  The expenditures authorized under the Act are to be applied in accordance with the votes and items set out in the estimates and supplementary estimates for the fiscal year ending on March 31, 2010 that are tabled in the Assembly.

Schedule k
LEGAL AID SERVICES ACT, 1998

The Legal Aid Services Act, 1998 is amended by replacing references to Management Board of Cabinet with references to Treasury Board.

Schedule l
Limitations Act, 2002

The Schedule amends the Limitations Act, 2002 by,

     (a) specifying the starting point for counting in relation to demand obligations for the purposes of discoverability and the ultimate limitation period;

     (b) adding a provision respecting the application of the Limitations Act to claims about payments made to the Crown or to another public authority for which it is alleged that there was no valid legal authority; and

     (c) replacing references in the Act to effective or commencement dates with the actual dates.

Schedule m
Local Roads Boards Act

Section 10.0.1 is added to the Local Roads Boards Act.  It requires a board to prepare an annual estimate of the amount required for the purposes of the board.  Currently, this requirement is set out in section 21 of the Act.  A technical amendment specifies when the estimate may be prepared.

Section  21 of the Act is re-enacted and sets out requirements governing the tax rates that may be levied under this Act in respect of classes of real property as defined in the Assessment Act.

Section 29.1 of the Act currently authorizes a board to enter into an agreement with the Minister of Finance authorizing the Minister to collect taxes levied by the board under the Act.  Technical amendments require a board to enter into such an agreement for a taxation year no later than December 1 of the preceding year.  Special provision is made for the 2009 taxation year.  Technical amendments respecting the termination of an agreement are also made.

Section 31 of the Act currently provides that, when a board collects taxes under the Act, the board remits the amount collected to the Minister of Transportation for deposit into the Consolidated Revenue Fund.  The Minister then credits certain amounts to the board.  A new subsection 31 (1.1) of the Act makes provision for amounts to be credited to the board when the taxes are collected for the board by the Minister of Finance.

Currently, section 32 of the Act authorizes the Minister of Transportation to credit a board with an amount calculated at a specified rate in respect of unoccupied Crown land in a local roads area.  An amendment provides a different method for determining the amount.

Currently, section 33 of the Act authorizes the Minister of Transportation to spend money for specified purposes when amounts have been credited to a board.  A new section 33.1 is added to the Act in connection with the collection of taxes by the Minister of Finance for a board.  In specified circumstances, the Minister of Finance is authorized to advance funds to the Minister of Transportation to spend for those specified purposes before amounts are credited to the board for the taxes to be collected.

Schedule n
Northern Services Boards Act

Currently, section 22 of the Northern Services Boards Act requires the Municipal Property Assessment Corporation to provide certain information to every Board by October 15 of each year.  A technical amendment extends that deadline to January 1, 2009 for information respecting the 2009 taxation year.

Currently, subsection 23 (6) of the Act specifies the rate to be levied on farmland and managed forest land in a Board area, and subsection 23 (7) of the Act sets out related regulation-making authority.  Those two subsections are deleted.

Section 23.1 is added to the Act.  It sets out requirements governing the rate or rates that may be levied under this Act in respect of classes of real property as defined in the Assessment Act.  A related technical amendment is made to subsection 23 (4) of the Act.

Section 25.1 is added to the Act.  Under this section, a Board may pass a by-law requesting the Minister of Finance to collect fees imposed by the Board.  The fees are collectable under the Provincial Land Tax Act, 2006.  A related amendment to section 26 of the Act requires the Minister of Finance to collect the fees.

Section 26.1 is added to the Act.  It requires the Minister of Finance to pay certain amounts to a Board on whose behalf the Minister levies rates or collects fees, if there is a difference between the amount that is collectable and the amount that is collected.  It also authorizes the Minister of Finance to make advances to such a Board in specified circumstances.

A technical amendment is made to subsection 43 (1) of the Act regarding exemptions from taxation under Part II of the Act.

Schedule o
Ontario Capital Growth Corporation Act, 2008

The Schedule enacts the Ontario Capital Growth Corporation Act, 2008 which establishes the Ontario Capital Growth Corporation as a corporation without share capital.

The objects of the Corporation are mainly to receive, hold, administer and otherwise deal with the interest of the Government of Ontario in the limited partnership known as the Ontario Venture Capital Fund LP and to carry out the other objects that are prescribed by the regulations made under the Act. The Corporation has the powers of a natural person for carrying out its objects, but cannot establish a subsidiary without the consent of the Lieutenant Governor in Council. Except with respect to dealing with the interest of the Government of Ontario in the limited partnership known as the Ontario Venture Capital Fund LP, the Corporation can only borrow or make investments if a by-law of the Corporation authorizes the activity, the Minister of Finance consents to the by-law and, unless the Minister of Finance agrees otherwise, the Ontario Financing Authority co-ordinates and arranges the activity.

The Corporation and its subsidiaries, if any, are Crown agents unless they declare in writing in an agreement, security or instrument that they are not acting as a Crown agent for the purposes of the agreement, security or instrument.

The Public Service Commission may appoint the employees of the Corporation under Part III of the Public Service of Ontario Act, 2006. The Corporation may engage other persons who are not employees of the Corporation.

Before the beginning of each fiscal year, the Corporation is required to submit its business plan for the fiscal year for approval by the Minister responsible for the administration of the Act. The Corporation is also required to maintain financial records and to make reports.

Schedule p
Ottawa Congress Centre Act

The short title of the Ottawa Congress Centre Act is changed to the Ottawa Convention Centre Corporation Act.  The corporation known as the Ottawa Congress Centre in English and as the Centre des congrès d'Ottawa in French is continued as the Ottawa Convention Centre Corporation in English and Société du Centre des congrès d'Ottawa in French.  With the approval of the Minister responsible for the administration of the Act, the board of directors of the corporation is allowed to change the name of the convention centre facility that the corporation operates in the City of Ottawa.

Schedule q
Provincial Land TAx Act, 2006

Section 6 of the Provincial Land Tax Act, 2006 is amended by adding subsection (1.1).  The new subsection allows the Minister to send an assessed owner more than one bill in respect of the property tax payable under the Act and allows the Minister to prescribe the manner in which the property tax payable on each bill is billed and paid.

Currently, subsection 8 (1) of the Act allows the Minister, upon application, to cancel or refund property tax.  Subsection 8 (1) is amended so that the Minister may only cancel or refund tax levied under this Act or the Education Act.

The re-enactment of subsection 20 (1) of the Act allows the Minister to prescribe how the property tax payable under the Act will be applied in respect of a property when amounts are payable by an assessed owner to one or more bodies under the Act.

Section 24.1 is added to the Act.  It allows the Minister to enter into and amend agreements with municipalities respecting the administration and enforcement of the Act.

Subsection 25 (1) of the Act is amended by adding clauses (k) and (l).  Clause (k) allows the Minister to make regulations regarding the payment of interest on any refund, rebate, deferral or cancellation of property tax that is authorized by the Act and prescribing the rate of interest.  Clause (l) allows the Minister to make regulations prescribing the manner in which the property tax payable is billed and paid for the purposes of the new subsection 6 (1.1).

A technical linguistic change is made to the French version of the Act.

Schedule r
Securities Act

The enactment of subsection 127 (10) of the Securities Act expressly permits an order or a temporary order to be made in respect of a person or company by the Ontario Securities Commission under subsection 127 (1) or (5) of the Act if, in any jurisdiction, the person or company has been convicted of specified types of securities related offences, has been found by a court to have contravened specified types of securities laws, is subject to an order of a securities regulatory authority imposing sanctions, conditions, restrictions or requirements or has agreed with a securities regulatory authority to be made subject to sanctions, conditions, restrictions or requirements.

SCHEDULE s
Social Housing Reform Act, 2000

The amendments to the Social Housing Reform Act, 2000 are intended to implement the government's policy, as announced in the 2007 Budget, to eliminate the equalization of social housing costs among GTA municipalities.

Schedule t
Supplementary interim appropriation act, 2008

The Schedule enacts the Supplementary Interim Appropriation Act, 2008, which authorizes additional expenditures for the fiscal year ending on March 31, 2009 up to specified maximum amounts.  The expenditures authorized under the new Act are in addition to those authorized under the Interim Appropriation Act, 2008.  The expenditures authorized under both the Interim Appropriation Act, 2008 and the Supplementary Interim Appropriation Act, 2008 are to be applied in accordance with the votes and items set out in the estimates and supplementary estimates for the fiscal year ending on March 31, 2009 that are tabled in the Assembly.

Schedule u
Taxation Act, 2007

The re-enactment of subsection 13 (2) of the Taxation Act, 2007 maintains the dividend tax credit for Ontario purposes at 7.7 per cent despite a decrease in the federal dividend tax credit under the Income Tax Act (Canada) (the "Federal Act").

Under the Act, any gain realized on the donation of certain publicly traded securities to a registered charity or other qualified donee is deducted in computing a corporation's adjusted net income for corporate minimum tax purposes.  The amendment to subsection 57 (1) of the Act similarly excludes from a corporation's adjusted net income for corporate minimum tax purposes any gain realized by the corporation on the exchange of certain securities for publicly traded securities if the corporation donates the publicly traded securities received on the exchange to a registered charity or other qualified donee after February 25, 2008.

Section 88 of the Act provides an employer with a co-operative education tax credit in respect of students enrolled in eligible educational institutions who are hired by the employer to work in qualifying work placements.  Subsection 88 (21) of the Act is amended to include Redeemer University College as an eligible educational institution.

Section 96 of the Act provides for the Ontario innovation tax credit, which is a refundable tax credit available to qualifying corporations that carry on scientific research and experimental development activities in Ontario.  The amendments to section 96 of the Act increase the expenditure limit for the tax credit from $2 million to $3 million and extend the taxable income phase-out range from the existing range of $400,000 to $600,000 to a new range of $400,000 to $700,000.  These increases are prorated for taxation years that straddle February 26, 2008.

The re-enactment of the definition of "adjusted income" in subsection 98 (1) of the Act adopts for the purposes of the Ontario property and sales tax credits and the Ontario senior homeowners' property tax grant the definition of that term in the Federal Act.

The amendment to subsection 99 (3) of the Act corrects a mathematical error in the formula for calculating the Ontario property and sales tax credits for individuals who are not seniors.

The re-enactment of subsections 100 (4) and (5) of the Act increases the income threshold to $24,300 in the calculation of the property and sales tax credits for seniors who have a qualifying spouse or qualifying common-law partner and corrects a mathematical error in the formula for calculating the tax credits.  New subsection 100 (6) of the Act provides an adjustment in the amount of the property tax credit available to a senior when the total of the property tax credit and the Ontario senior homeowners' property tax grant for a year exceeds the amount of the property tax for that year.

Section 104.1 of the Act provides for the payment of the Ontario senior homeowners' property tax grant.  The amendments,

     (a) provide that an eligible senior is deemed to have made an overpayment of tax and entitled to a grant equal to the deemed overpayment;

     (b) entitle the estate of a deceased senior to apply for the grant if the senior would otherwise be entitled to the grant but died before applying;

     (c) allow the estate of a deceased senior to retain a grant if the senior applied for the grant before his or her death;

     (d) provide that the grant is not available for any year in which the senior was confined in a prison or similar institution for more than 179 days;

     (e) prohibit an eligible senior from applying for the grant at a time when he or she is confined to a prison or similar institution;

     (f)  provide that no interest is payable in respect of the grant; and

     (g) permit the Minister of Finance to prescribe types of designated principal residences that are not owned by eligible seniors.

The re-enactment of subsection 137 (1) of the Act is a housekeeping amendment to adopt a recently enacted provision of the Federal Act relating to the time of remittance of amounts paid on account of tax.

Schedule v
amendments to various acts consequential to the enactment of the taxation Act, 2007

The Taxation Act, 2007 generally replaces the Income Tax Act and the Corporations Tax Act for taxation years ending after 2008.  Consequential amendments are made to the Business Corporations Act, the Community Small Business Investment Funds Act, the Electricity Act, 1998, the Limitations Act, 2002, the Mining Tax Act, the Municipal Extra-Territorial Tax Act, the Ontario Disability Support Program Act, 1997, the Ontario Guaranteed Annual Income Act, the Ontario Works Act, 1997, the Proceedings Against the Crown Act and the Social Housing Reform Act, 2000 to update statutory cross-references.

schedule w
tobacco tax act

Subsection 2 (1.8) of the Tobacco Tax Act is amended to require a wholesaler who is a retail dealer of cigars to calculate the taxable price of cigars in the same manner as a retail dealer who is an importer or manufacturer of cigars.

Subsection 2 (7.1) of the Act currently permits the assessment of a penalty against a person for knowingly failing to pay tax.  The re-enactment of the subsection introduces a minimum amount to be factored into the calculation of the penalty. The minimum amount is based on the number of previous penalties assessed against the person under this subsection or certain other provisions of the Act.

Subsection 5 (11.1) of the Act currently permits the assessment of a penalty against a person who operates as an importer into Ontario of tobacco in bulk without holding a registration certificate required under the Act.  The re-enactment of the subsection introduces a minimum amount to be factored into the calculation of the penalty.  The minimum amount is based on the number of previous penalties assessed against the person under this subsection.

Section 7.0.1 is added to the Act.  It deems any person who imports into Ontario or possesses in Ontario equipment for manufacturing cigarettes to be a manufacturer for the purposes of the registration requirements in section 7 of the Act.  The new section includes offence and penalty provisions related to importing or possessing equipment for manufacturing cigarettes without holding a manufacturer's registration certificate issued under section 7 of the Act. The new section allows for the seizure and forfeiture of equipment for manufacturing cigarettes for failure to obtain the required registration certificate.  Section 23 of the Act is amended to permit the examination during the course of an audit and inspection of any cigarette manufacturing equipment found on the premises that is the subject of the inspection.

Subsection 20.2 (3) of the Act currently permits the assessment of a penalty against a wholesaler who has delivered tobacco to a retail dealer who is temporarily prohibited from selling tobacco under section 20 of the Act.  The re-enactment of the subsection introduces a minimum amount to be factored into the calculation of the penalty.  The minimum amount is based on the number of previous penalties assessed against the person under this subsection.

Section 23.1.1 is added to the Act. If it is discovered during an inspection that a wholesaler or retail dealer is in possession of cigars or other tobacco in contravention of subsection 29.1 (2) of the Act, the new section allows the cigars or other tobacco to be seized and forfeited.

Subsection 24 (12) of the Act currently permits the assessment of a penalty when tobacco is seized from a person under subsection 24 (3) of the Act.  The re-enactment of the subsection introduces a minimum amount to be factored into the calculation of the penalty.  The minimum amount is based on the number of previous penalties assessed against the person under this subsection or certain other provisions of the Act.

The amendment to subsection 29 (1.1) of the Act allows for the seizure of unmarked cigarettes if there are reasonable and probable grounds to believe that a person is in possession of more than 200 unmarked cigarettes when the person is not permitted under the Act to be in possession of unmarked cigarettes.

Subsections 29 (3) and (4) of the Act currently permit the assessment of a penalty against a person who sells unmarked cigarettes or has more than 200 unmarked cigarettes in his or her possession, unless permitted under the Act.  The re-enactment of the subsections introduces a minimum amount to be factored into the calculation of the penalty.  The minimum amount is based on the number of previous penalties assessed against the person under either subsection or certain other provisions of the Act.

Currently, subsection 29.1 (2) of the Act prohibits possession of more than 50 cigars or one kilogram of other tobacco for which a person cannot prove that an amount equal to the tax payable under section 2 of the Act has been paid.  The re-enactment of the subsection also prohibits possession by a person for the purposes of sale of any cigars or other tobacco for which the person cannot prove that an amount equal to the tax payable under section 2 of the Act has been paid.  Subsections 29.1 (2.1) to (2.7) are added to the Act, allowing for the seizure and forfeiture of cigars and other tobacco in specified circumstances if subsection 29.1 (2) of the Act is contravened.

Subsection 29.1 (6) of the Act currently permits the assessment of a penalty against a person for selling or keeping for the purpose of sale cigars or other tobacco for which the person cannot prove that an amount equal to the tax that would be payable under section 2 of the Act has been paid.  The re-enactment of the subsection introduces a minimum amount to be factored into the calculation of the penalty.  The minimum amount is based on the number of previous penalties assessed against the person under this subsection or certain other provisions of the Act.

Currently, subsection 29.1 (7) of the Act permits the assessment of a penalty against a person for possessing more than 50 cigars or more than one kilogram of other tobacco for which the person cannot prove that an amount equal to the tax that would be payable under section 2 of the Act has been paid.  The re-enactment of the subsection and new subsection 29.1 (7.1) of the Act introduces a minimum amount to be factored into the calculation of the penalty.  The minimum amount is based on the number of previous penalties assessed against the person under subsection 29.1 (7) or certain other provisions of the Act.

Subsection 34 (2) of the Act currently permits the assessment of a penalty against a person for possessing cigarettes in a package, carton or case that has either previously been used as a marked package, carton or case or has been fraudulently marked.  The re-enactment of the subsection introduces a minimum amount to be factored into the calculation of the penalty.  The minimum amount is based on the number of previous penalties assessed against the person under this subsection or certain other provisions of the Act.

 

 

Bill 114 2008

An Act respecting Budget measures, interim appropriations and other matters, to amend the Ottawa Congress Centre Act and to enact the Ontario Capital Growth Corporation Act, 2008

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

CONTENTS
1. 2. 3. Schedule A Schedule B Schedule C Schedule D Schedule E Schedule F Schedule G Schedule H Schedule I Schedule J Schedule K Schedule L Schedule M Schedule N Schedule O Schedule P Schedule Q Schedule R Schedule S Schedule T Schedule U Schedule V Schedule W	Contents of this Act Commencement Short title Assessment Act Commodity Futures Act Corporations Tax Act Education Act Electricity Act, 1998 Executive Council Act Financial Administration Act Fuel Tax Act Income Tax Act Interim Appropriation for 2009-2010 Act, 2008 Legal Aid Services Act, 1998 Limitations Act, 2002 Local Roads Boards Act Northern Services Boards Act Ontario Capital Growth Corporation Act, 2008 Ottawa Congress Centre Act Provincial Land Tax Act, 2006 Securities Act Social Housing Reform Act, 2000 Supplementary Interim Appropriation Act, 2008 Taxation Act, 2007 Amendments to Various Acts Consequential to the Enactment of the Taxation Act, 2007 Tobacco Tax Act
___________

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 and Interim Appropriation Act, 2008 (No. 2).

Schedule A
assessment Act

   1.  Subsection 2 (2) of the Assessment Act is amended by adding the following clause:

(d.7) prescribing land to which subsection 40 (3) does not apply;

   2.  (1)  Subsection 3 (1) of the Act is amended by adding the following paragraph:

Care homes

    7.  Land that is used as a care home within the meaning of the Residential Tenancies Act, 2006 if the following conditions are satisfied:

            i.  the operator of the care home,

                  A.  is currently operating an approved charitable home for the aged under the Charitable Institutions Act, or

                  B.  on or before January 1, 2004 was operating an approved charitable home for the aged under the Charitable Institutions Act and is currently operating a nursing home under the Nursing Homes Act or a long-term care home under the Long-Term Care Homes Act, 2007,

           ii.  the operator of the care home is a registered charity within the meaning of subsection 248 (1) of the Income Tax Act (Canada), and

          iii.  the land is owned, used and occupied by the care home or, if the land is leased by the care home, it is used and occupied by the care home and would be exempt from taxation if it was occupied by the owner.

This paragraph does not apply to any portion of the land that is occupied by a commercial tenant or that is a self-contained residential unit.

   (2)  Paragraph 20 of subsection 3 (1) of the Act is repealed and the following substituted:

Mineral land and minerals

  20.  The buildings, plant and machinery under mineral land and the machinery in or on the land only to the extent and in the proportion that the buildings, plant and machinery are used for obtaining minerals from the ground, and all minerals that are in, on or under land.

   (3)  Subsection 3 (1) of the Act is amended by adding the following paragraph:

Additional residential units for seniors

22.1 A structure erected or placed on land that is a garden suite within the meaning of the Planning Act, if the following conditions are satisfied:

            i.  a by-law or order under the Planning Act provides that the use of the garden suite is temporary,

           ii.  the garden suite is used as the personal residence of a person who is at least 65 years of age, and

          iii.  the landowner also has his or her personal residence on the land and is a family member of the person described in subparagraph ii.

   3.  Section 19.1 of the Act is amended by adding the following subsections:

Assessment corporation to make adjustment

   (5)  If a change is made to the current value of land other than a change resulting from a general reassessment, the assessment corporation shall make any adjustments required under this section.

Adjustment for arithmetical error

   (6)  If, at any time during a taxation year, the assessment corporation determines that there has been an arithmetical error in an adjustment under this section for the year or a subsequent taxation year, the corporation shall make an adjustment to correct the error.

Notice of adjustment

   (7)  If an adjustment is made under subsection (5) or (6) and no notice showing the adjustment is otherwise given under this Act, the assessment corporation shall notify the person against whom the land is assessed and the municipality within 90 days of making the adjustment.

Exception

   (8)  Sections 39.1 and 40 do not apply to a notice given under subsection (7).

   4.  Section 31 of the Act is amended by adding the following subsection:

Exception

   (1.0.1)  Subsection (1) does not apply where the only change is an adjustment made under section 19.1.

   5.  (1)  Subsection 32 (1) of the Act is amended by striking out "any notice provided for by section 31" and substituting "any notice provided for under this Act".

   (2)  Subsection 32 (1.1) of the Act is amended by striking out "any notice provided for by section 31" in the portion before paragraph 1 and substituting "any notice provided for under this Act".

   (3)  Subsection 32 (2) of the Act is amended by striking out the portion before paragraph 1 and substituting the following:

Change in classification

   (2)  The following rules apply if, as a result of a change in the regulations made under this Act or the Education Act, the classification of land is changed and taxes have been levied on the land that exceed the amount of taxes that would have been levied on the land if it had been classified in accordance with the change in the regulations:

.     .     .     .     .

   (4)  Subsection 32 (3) of the Act is amended by striking out "for the current year or for all or part of the preceding year" at the end of the portion before paragraph 1.

   (5)  Subsection 32 (4) of the Act is amended by striking out "for the current year or for all or part of the preceding year" in the portion before paragraph 1.

   (6)  Subsection 32 (5) of the Act is repealed.

   6.  Subsection 39 (1) of the Act is amended by adding "or a local roads area under the Local Roads Boards Act" after "the assessment roll for a locality".

   7.  (1)  Subsection 39.1 (1) of the Act is repealed and the following substituted:

Reconsideration of assessment

   (1)  For 2009 and subsequent taxation years, the owner of a property or a person who has received or would be entitled to receive a notice of assessment under this Act may request the assessment corporation to reconsider the following matters no later than March 31 of the taxation year in respect of which the request is made:

    1.  Any matter that could form the basis of an appeal under subsection 40 (1).

    2.  Any matter that could form the basis of an application under section 46.

   (2)  Subsection 39.1 (3) of the Act is amended by adding "or March 31 of the taxation year, whichever is later" at the end.

   8.  (1)  Subsection 40 (8) of the Act is amended by adding "or March 31 of the taxation year, whichever is later" at the end.

   (2)  Subsection 40 (12) of the Act is repealed.

   (3)  Clauses 40 (26) (a) and (b) of the Act are repealed and the following substituted:

  (a)  in relation to the assessments under sections 32, 33 and 34 for the year; and

  (b)  in relation to the assessment, including assessments under sections 32, 33 and 34, for a subsequent taxation year to which the same general reassessment applies, if the appeal is not finally disposed of before March 31 of the subsequent taxation year or, if an assessment has been made under section 32, 33 or 34, before the 90th day after the notice of assessment was mailed.

Commencement

   9.  (1)  Subject to subsections (2) and (3), this Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2008 (No. 2) receives Royal Assent.

Same

   (2)  Subsections 2 (1) and (2) are deemed to have come into force on January 1, 2004.

Same

   (3)  Subsection 2 (3) is deemed to have come into force on January 1, 2005.

Schedule b
Commodity Futures Act

   1.  Section 60 of the Commodity Futures Act is amended by adding the following subsection:

Inter-jurisdictional enforcement

   (9)  Without limiting the generality of subsections (1) and (4), an order may be made under subsection (1) or (4) in respect of a person or company if any of the following circumstances exist:

    1.  The person or company has been convicted in any jurisdiction of an offence arising from a transaction, business or course of conduct related to commodities or contracts.

    2.  The person or company has been convicted in any jurisdiction of an offence under a law respecting the buying or selling of commodities or contracts.

    3.  The person or company has been found by a court in any jurisdiction to have contravened the laws of the jurisdiction respecting the buying or selling of commodities or contracts.

    4.  The person or company is subject to an order imposing sanctions, conditions, restrictions or requirements on the person or company that is made by an authority in any jurisdiction responsible for the regulation of commodities and contracts.

    5.  The person or company has agreed with an authority in any jurisdiction responsible for the regulation of commodities and contracts that the person or company be made subject to sanctions, conditions, restrictions or requirements.

Commencement

   2.  This Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2008 (No. 2) receives Royal Assent.

Schedule c
corporations Tax Act

   1.  (1)  Subsection 43.3 (3.2) of the Corporations Tax Act is amended by striking out the portion before the formula and substituting the following:

Expenditure limit, taxation year ending after May 4, 1999 and before February 26, 2008

   (3.2)  Subject to subsections (3.3) and (3.7), the amount of a corporation's expenditure limit for a taxation year that ends after May 4, 1999 and before February 26, 2008 is the amount that would be determined to be its expenditure limit for the taxation year for the purposes of subsection 127 (10.1) of the Income Tax Act (Canada) if, for the purposes of the definition of "B" in subsection 127 (10.2) of that Act, the business limit of a corporation were considered to be the amount, if any, by which the business limit of the corporation for the taxation year as determined under subsection 41 (3.1) without the application of paragraph 125 (5) (b) of the Income Tax Act (Canada) and this subsection exceeds the amount calculated using the formula,

.     .     .     .     .

   (2)  Section 43.3 of the Act is amended by adding the following subsections:

Expenditure limit, taxation year ending after February 25, 2008

   (3.2.1)  Subject to subsections (3.2.5) and (3.7), the amount of a corporation's expenditure limit for a taxation year ending after February 25, 2008 is the amount calculated using the formula,

($7 million – 10A) ×

in which,

  "A"  is the greater of,

         (a)  $400,000, and

         (b)  the amount that is,

                   (i)  if the corporation is not associated with any other corporation in the taxation year, the corporation's taxable income under the Income Tax Act (Canada) for its immediately preceding taxation year, determined before taking into consideration the specified future tax consequences for that preceding year, or

                  (ii)  if the corporation is associated with one or more corporations in the taxation year, the associated group's taxable income for the corporation's immediately preceding taxation year, as determined under subsection (3.2.2), and

  "B"  is,

         (a)  nil if,

                   (i)  the corporation's taxable capital amount for the immediately preceding taxation year, as determined under subsection (3.2.3), is not more than $25 million and the corporation is not associated with any other corporation in the taxation year, or

                  (ii)  the corporation is associated with one or more corporations in the taxation year and the associated group's taxable capital amount for the preceding taxation year as determined under subsection (3.2.4) is not more than $25 million, or

         (b)  in any other case, the lesser of $25 million and the amount by which the corporation's taxable capital amount for the immediately preceding taxation year or, if the corporation is associated with one or more corporations in the taxation year, the associated group's taxable capital amount for the immediately preceding taxation year exceeds $25 million.

Associated group's taxable income

   (3.2.2)  If a corporation is associated with one or more corporations in a particular taxation year, the associated group's taxable income for the corporation's immediately preceding taxation year is the sum of,

  (a)  the corporation's taxable income under the Income Tax Act (Canada) for its last taxation year ending in the last calendar year that ended before the end of the particular taxation year, determined before taking into consideration the specified future tax consequences for that preceding year; and

  (b)  the sum of all amounts each of which is the taxable income of an associated corporation under the Income Tax Act (Canada) for the associated corporation's last taxation year ending in the last calendar year that ended before the end of the particular taxation year of the corporation referred to in clause (a), determined before taking into consideration the specified future tax consequences for that last taxation year.

Taxable capital amount

   (3.2.3)  A corporation's taxable capital amount for a taxation year is,

  (a)  the corporation's taxable paid-up capital for the year as determined under Part III, if the corporation is a corporation that is not a financial institution as defined in subsection 58 (2), a credit union or an insurance corporation;

  (b)  the corporation's adjusted taxable paid-up capital for the year as determined under Part III, if the corporation is a financial institution as defined in subsection 58 (2), other than a credit union; or

   (c)  the corporation's taxable capital employed in Canada for the year as determined under Part I.3 of the Income Tax Act (Canada), if the corporation is a credit union or an insurance corporation.

Associated group's taxable capital amount

   (3.2.4)  If a corporation is associated with one or more corporations in a particular taxation year, the associated group's taxable capital amount for the immediately preceding taxation year is the sum of,

  (a)  the corporation's taxable capital amount for its last taxation year ending in the last calendar year that ended before the end of the particular taxation year, as determined under subsection (3.2.3); and

  (b)  the sum of all amounts each of which is the taxable capital amount, as determined under subsection (3.2.3), of a corporation with which the corporation is associated in the taxation year, for the associated corporation's last taxation year ending in the last calendar year that ended before the end of the particular taxation year of the corporation referred to in clause (a).

Transitional, February 26, 2008

   (3.2.5)  A corporation's expenditure limit for a taxation year that straddles February 26, 2008 is equal to the amount determined by the formula:

A + [(B – A) × (C/D)]

in which,

  "A"  is the amount that would be determined in respect of the corporation under subsection (3.2) if that subsection applied for the taxation year,

  "B"  is the amount that would be determined in respect of the corporation for the taxation year under subsection (3.2.1) if this subsection did not apply,

  "C"  is the number of days in the taxation year that are after February 25, 2008, and

  "D"  is the number of days in the taxation year.

Application of federal rules

   (3.2.6)  Subsections 127 (10.21), (10.22), (10.23), (10.3), (10.4) and (10.6) of the Income Tax Act (Canada) apply with necessary modifications for the purposes of subsections (3.2.1) and (3.7) and, without limiting the generality of the foregoing, in the application of section 127 of the Income Tax Act (Canada) for the purposes of subsections (3.2.1) and (3.7), a reference to a Canadian-controlled private corporation is deemed to be a reference to a qualifying corporation as defined in subsection (4).

   (3)  Section 43.3 of the Act is amended by adding the following subsection:

Definition

   (17)  In this section,

"associated group" means, in respect of a corporation for a taxation year, the corporation and all corporations associated with the corporation in the taxation year.

   2.  Clause (c) of the definition of "B" in subsection 57.4 (1) of the Act is amended by striking out "and" at the end of subclause (iv), by adding "and" at the end of subclause (v) and by adding the following subclause:

         (vi)  the amount of any gain in respect of a disposition of property by the corporation that is described in subparagraph 38 (a.1) (iii) or paragraph 38 (a.3) of the Income Tax Act (Canada) if the gift to a qualified donee for the purposes of that provision occurs on or after February 26, 2008,

Commencement

   3.  This Schedule is deemed to have come into force on February 26, 2008.

Schedule d
education Act

   1.  The Education Act is amended by adding the following section:

Difference in amounts levied and collected

   257.11.1  (1)  In addition to the amounts payable under subsection 257.11 (1.1), if the amount levied for school purposes under subsection 257.7 (1) is greater than the amount collected by the Minister of Finance, the Minister of Finance shall pay the difference out of the Consolidated Revenue Fund to the levying board.

Payment deemed to be tax levied

   (2)  Any amount paid to a levying board under subsection (1) is deemed to be tax levied under section 2 of the Provincial Land Tax Act, 2006.

Commencement

   2.  This Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2008 (No. 2) receives Royal Assent.

Schedule e
Electricity Act, 1998

   1.  Section 81 of the Electricity Act, 1998 is amended by adding the following subsection:

Extension of time

   (1.1)  The Minister of Finance may extend the time for the Financial Corporation to submit its annual report for a fiscal year to a day that is not later than the day the Public Accounts for the fiscal year are submitted to the Lieutenant Governor in Council in accordance with subsection 13 (3) of the Ministry of Treasury and Economics Act.

Commencement

   2.  This Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2008 (No. 2) receives Royal Assent.

Schedule f
Executive Council Act

   1.  Subsection 2 (1) of the Executive Council Act is repealed and the following substituted:

Appointment of ministers

   (1)  The Lieutenant Governor may appoint under the Great Seal such ministers of the Crown as are provided for under any Act or as the Lieutenant Governor sees fit to appoint, to hold office during pleasure.

   2.  Subsection 7 (2) of the Act is repealed and the following substituted:

Certain absences

   (2)  A day on which a minister is absent from the Chamber is not counted as an absence for the purpose of this section if the Premier is of the opinion that the absence is justified because of,

  (a)  illness, bereavement, a religious holiday or some similar reason; or

  (b)  international travel related to trade or economic development.

Commencement

   3.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2008 (No. 2) receives Royal Assent.

Same

   (2)  Section 2 is deemed to have come into force on October 22, 2008.

Schedule g
Financial Administration Act

   1.  Section 9 of the Financial Administration Act is repealed and the following substituted:

Refunds

Payment of interest

   9.  (1)  If an Act authorizes the refund of an amount received by the Crown, the refund, together with interest on the amount refunded if the interest is also authorized by an Act, is payable out of the Consolidated Revenue Fund.

Refund of money paid in error, etc.

   (2)  A refund or partial refund may be paid out of the Consolidated Revenue Fund of money that was paid to or collected by the Crown if the money was paid or collected in error or for a purpose that is not fulfilled, or if Treasury Board considers it appropriate in the circumstances to make the refund or partial refund.

Treasury Board directives

   (3)  Any refund or partial refund of money under subsection (2) shall be made in accordance with such directives as Treasury Board may establish for the purposes of this section.

Accounting

   (4)  An amount paid out of the Consolidated Revenue Fund under this section shall be charged to the appropriate revenue account.

Transition

   9.1  To the extent a regulation made under subsection 9 (2) as that subsection read on October 22, 2008 does not conflict with any directives of Treasury Board referred to in subsection 9 (3), the regulation remains in force and continues to apply until it is revoked.

Commencement

   2.  This Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2008 (No. 2) receives Royal Assent.

Schedule h
Fuel Tax Act

   1.  (1)  Clause 2 (1) (d) of the Fuel Tax Act is repealed and the following substituted:

  (d)  4.5 cents per litre on all fuel received or used in Ontario to propel railway equipment on rails in connection with and as part of a public transportation system, including any product excluded from this Act by the provisions of this Act or the regulations.

   (2)  Clause 2 (3) (a) of the Act is amended by striking out "in the fuel tank" and substituting "in a fuel tank".

   (3)  Clause 2 (3) (b) of the Act is repealed and the following substituted:

  (b)  fuel that is not clear fuel that the person places in a fuel tank of a motor vehicle or vessel if the motor vehicle or vessel is operated or intended to be operated principally for the pleasure or recreation of its owner or operator.

   (4)  Subsection 2 (6) of the Act is repealed and the following substituted:

Prohibited use of coloured fuel

   (6)  No person shall place or cause to be placed any coloured fuel in a fuel tank of,

  (a)  a motor vehicle to which a number plate is attached as required under the Highway Traffic Act; or

  (b)  a motor vehicle or vessel operated or intended to be operated principally for the pleasure or recreation of its owner or operator.

   (5)  Subsection 2 (7) of the Act is repealed and the following substituted:

Use of coloured fuel

   (7)  Coloured fuel may be used for any purpose prescribed by the Minister for the use of coloured fuel and for all purposes other than generating power in a motor vehicle or vessel referred to in subsection (6).

   2.  Section 4.11 of the Act is amended by adding the following subsection:

Railways

   (2.1)  Subject to section 9, every person who operates railway equipment on rails in Ontario in connection with and as part of a public transportation system must be a registered consumer.

   3.  (1)  Subsections 5 (1) and (2) of the Act are repealed and the following substituted:

Detention and examination of motor vehicle or vessel

   (1)  For the purpose of ascertaining,

  (a)  whether tax imposed by this Act has been paid on clear fuel contained in a fuel tank of a motor vehicle or vessel or whether a fuel tank of a motor vehicle or vessel contains coloured fuel;

  (b)  whether any tax imposed by this Act is payable on such fuel; or

   (c)  whether the operator of a motor vehicle is an interjurisdictional carrier whose motor vehicle carries a valid registration decal or is required to carry such a registration decal under the regulations,

any person authorized for the purpose by the Minister may, without a warrant, if the person has reasonable and probable grounds to believe that a motor vehicle referred to in subsection 2 (6) or a vessel referred to in clause (2) (6) (b) contains evidence of a contravention of this Act, stop and detain the motor vehicle or vessel in Ontario, examine the motor vehicle or vessel and fuel in any fuel tank in it, take samples of the fuel,  inspect any registration decal on the motor vehicle and examine the documents in the custody of the driver of the motor vehicle or operator of the vessel related to liability for tax under this Act, the ownership of the motor vehicle or vessel and the identity of the operator of the motor vehicle or vessel and also examine any driver's licence required under the Highway Traffic Act or any operator's card required under the Canada Shipping Act, 2001 (Canada).

Offence

   (2)  Every driver of a motor vehicle or operator of a vessel that may be stopped and detained under subsection (1) who,

  (a)  fails to comply with a stop sign set up by a person authorized by the Minister to examine any motor vehicle or vessel;

  (b)  fails to obey a lawful signal or request by a person authorized by the Minister to examine any motor vehicle or vessel;

   (c)  drives a motor vehicle to which a valid registration decal is not affixed as required under the regulations;

  (d)  refuses to permit the detention or examination of the motor vehicle or vessel that is under his or her control; or

  (e)  refuses to permit samples of fuel to be taken from a fuel tank of the motor vehicle or vessel that is under his or her control,

is guilty of an offence and on conviction is liable to a fine of not less than $200 and not more than $1,000.

   (2)  Subsection 5 (3) of the Act is amended by striking out "in the fuel tank" and substituting "in a fuel tank".

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

Offence, pleasure use

   (3.1)  Every driver or operator of a motor vehicle described in clause 2 (6) (b) and every operator of a vessel described in that clause is guilty of an offence if it is found that a fuel tank of the motor vehicle or vessel, as the case may be, contains coloured fuel and, on conviction, is liable to a fine of not less than $200 and not more than $1,000.

   (4)  Subsections 5 (4) and (5) of the Act are repealed and the following substituted:

Burden of proof

   (4)  In any proceeding under subsection (3) or (3.1), it is not necessary to prove that coloured fuel was acquired and used in contravention of this Act, but only to prove that a fuel tank of a motor vehicle or vessel contained coloured fuel on the day of the examination under this section.

Subsequent offence

   (5)  The fact that the coloured fuel found in a fuel tank of a motor vehicle or vessel is the same coloured fuel that was found in the fuel tank on another occasion that constituted an offence under subsection (3) or (3.1) is not a defence in a prosecution for a subsequent offence under either subsection if a period of more than 24 hours has elapsed since a sample of fuel was taken from the fuel tank in the motor vehicle or vessel.

   4.  (1)  Paragraphs 4, 5, 6 and 7 of subsection 22.1 (1) of the Act are amended by striking out "the Act" wherever it appears and substituting in each case "this Act".

   (2)  Subsection 22.1 (1) of the Act is amended by adding the following paragraph:

    8.  Each person who is a registered consumer under this Act.

   5.  (1)  Subsection 27.1 (1) of the Act is repealed and the following substituted:

Penalty, re coloured fuel

   (1)  Any person who knowingly,

  (a)  places coloured fuel in a fuel tank of a motor vehicle to which a number plate is attached as required under the Highway Traffic Act;

  (b)  places coloured fuel in a fuel tank of a motor vehicle or vessel described in clause 2 (6) (b); or

   (c)  causes coloured fuel to be placed in a fuel tank in violation of clause (a) or (b),

shall pay a penalty, when assessed therefor, equal to three times the tax that would be payable under section 2 if the fuel were clear fuel sold to a purchaser in Ontario.

   (2)  Section 27.1 of the Act is amended by adding the following subsection:

Penalty, recreational use

   (2.1)  Any person who drives a motor vehicle described in clause 2 (6) (b) or operates a vessel described in that clause at a time when coloured fuel is in a fuel tank of the motor vehicle or vessel shall pay a penalty, when assessed therefor, equal to three times the tax that would be payable under section 2 if the fuel were clear fuel sold to a purchaser in Ontario.

   (3)  Subsection 27.1 (5) of the Act is amended by striking out "subsection (1), (2), (3) or (4)" and substituting "subsection (1), (2), (2.1), (3) or (4)".

Commencement

   6.  This Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2008 (No. 2) receives Royal Assent.

schedule i
income tax act

   1.  (1)  The definition of "adjusted income" in subsection 8 (1) of the Income Tax Act is repealed and the following substituted:

"adjusted income" means, in respect of an individual for a taxation year, the individual's adjusted income as determined for the purposes of subdivision a.1 of Division E of Part I of the Federal Act; ("revenu rajusté")

   (2)  Clause 8 (3.1.1) (b) of the Act is amended by striking out "the 2007 and subsequent taxation years" at the end and substituting "the 2007 taxation year".

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

2008 income threshold for purposes of subs. (3.1)

   (3.1.3)  In calculating under subsection (3.1) the amount, if any, that a senior is entitled to deduct under that subsection for his or her 2008 taxation year, $24,300 is to be substituted for $23,090.

   2.  Paragraph 3 of subsection 10 (1) of the Act is repealed and the following substituted:

    3.  Subsections 153 (1), (1.1), (1.2), (1.4) and (3) and 156.1 (4).

Commencement

   3.  (1)  Subject to subsections (2) and (3), this Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2008 (No. 2) receives Royal Assent.

Same

   (2)  Section 1 is deemed to have come into force on January 1, 2008.

Same

   (3)  Section 2 is deemed to have come into force on June 18, 2008.

Schedule j
Interim Appropriation for 2009-2010 Act, 2008

Interpretation

   1.  (1)  Expressions used in this Act have the same meaning as in the Supply Act, 2008 unless the context requires otherwise.

Same

   (2)  In this Act, a reference to the estimates and supplementary estimates for 2009-10 means the estimates and supplementary estimates for the fiscal year ending on March 31, 2010 as tabled in the Assembly on or before March 31, 2010.

Expenses of the public service

   2.  For the fiscal year ending on March 31, 2010, amounts not exceeding a total of $55,000,000,000 may be paid out of the Consolidated Revenue Fund or incurred as non-cash expenses to be applied to the expenses of the public service that are not otherwise provided for and the money shall be applied in accordance with the votes and items set out in the estimates and supplementary estimates for 2009-10.

Investments of the public service

   3.  For the fiscal year ending on March 31, 2010, amounts not exceeding a total of $1,500,000,000 may be paid out of the Consolidated Revenue Fund to be applied to the investments of the public service in capital assets, loans and other investments that are not otherwise provided for and the money shall be applied in accordance with the votes and items set out in the estimates and supplementary estimates for 2009-10.

Expenses of the Legislative Offices

   4.  For the fiscal year ending on March 31, 2010, amounts not exceeding a total of $130,000,000 may be paid out of the Consolidated Revenue Fund to be applied to the expenses of the Legislative Offices that are not otherwise provided for and the money shall be applied in accordance with the votes and items set out in the estimates and supplementary estimates for 2009-10.

Expenditures of the public service

   5.  An expenditure in the votes and items set out in the estimates and supplementary estimates for 2009-10 may be incurred by the Crown through any ministry to which, during the fiscal year ending on March 31, 2010, responsibility has been given for the program or activity that includes that expenditure.

Commencement

   6.  The Act set out in this Schedule comes into force on April 1, 2009.

Short title

   7.  The short title of the Act set out in this Schedule is the Interim Appropriation for 2009-2010 Act, 2008.

Schedule k
legal Aid Services Act, 1998

   1.  Section 54 of the Legal Aid Services Act, 1998 is amended by striking out "Management Board of Cabinet" and substituting "Treasury Board".

   2.  Subsection 67 (1) of the Act is amended by striking out "Management Board of Cabinet" and substituting "Treasury Board".

   3.  Clause 71 (2) (h) of the Act is amended by striking out "Management Board of Cabinet" and substituting "Treasury Board".

Commencement

   4.  This Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2008 (No. 2) receives Royal Assent.

Schedule l
Limitations Act, 2002

   1.  Section 5 of the Limitations Act, 2002 is amended by adding the following subsections:

Demand obligations

   (3)  For the purposes of subclause (1) (a) (i), the day on which injury, loss or damage occurs in relation to a demand obligation is the first day on which there is a failure to perform the obligation, once a demand for the performance is made.

Same

   (4)  Subsection (3) applies in respect of every demand obligation created on or after January 1, 2004.

   2.  (1)  Clause 15 (6) (c) of the Act is repealed and the following substituted:

   (c)  in the case of an act or omission in respect of a demand obligation, the first day on which there is a failure to perform the obligation, once a demand for the performance is made.

   (2)  Section 15 of the Act is amended by adding the following subsection:

Application, demand obligations

   (7)  Clause (6) (c) applies in respect of every demand obligation created on or after January 1, 2004.

   3.  Subclause 19 (1) (b) (i) of the Act is amended by striking out "the day this Act comes into force" and substituting "January 1, 2004".

   4.  (1)  Subsections 22 (3), (4) and (5) of the Act are amended by striking out "the effective date" wherever it appears and substituting in each case "October 19, 2006". 

   (2)  The definition of "effective date" in subsection 22 (6) of the Act is repealed.

   5.  (1)  The definition of "effective date" in subsection 24 (1) of the Act is repealed.

   (2)  The definition of "former limitation period" in subsection 24 (1) of the Act is amended by striking out "the coming into force of this Act" at the end and substituting "January 1, 2004".

   (3)  The following provisions of section 24 of the Act are amended by striking out "the effective date" wherever it appears and substituting in each case "January 1, 2004":

    1.  Subsection 24 (3).

    2.  Paragraph 2 of subsection 24 (5).

    3.  Subsection 24 (6), in the portion before paragraph 1.

    4.  Paragraph 2 of subsection 24 (6).

    5.  Subsection 24 (7).

   (4)  Subsection 24 (2) of the Act is amended by striking out the first instance of "the effective date" and substituting "January 1, 2004" and by striking out the second instance of "the effective date" and substituting "that date".

   (5)  Subsection 24 (4) of the Act is amended by striking out the first instance of "the effective date" and substituting "January 1, 2004" and by striking out the second instance of "the effective date" and substituting "that date".

   (6)  Subsection 24 (5) of the Act is amended by striking out the first instance of "the effective date" in the portion before paragraph 1 and substituting "January 1, 2004" and by striking out the second instance of "the effective date" in the portion before paragraph 1 and substituting "that date".

   (7)  Paragraph 1 of subsection 24 (5) of the Act is amended by striking out the first instance of "the effective date" and substituting "January 1, 2004" and by striking out the second instance of "the effective date" and substituting "that date".

   (8)  Paragraph 1 of subsection 24 (6) of the Act is amended by striking out the first instance of "the effective date" and substituting "January 1, 2004" and by striking out the second instance of "the effective date" and substituting "that date".

   (9)  Section 24 of the Act is amended by adding the following subsection:

Claims re payments alleged to be ultra vires

   (7.1)  For the purposes of this section, clause 45 (1) (g) of the Limitations Act, as it read immediately before its repeal, applies to a claim respecting amounts paid to the Crown or to another public authority for which it is alleged that no valid legal authority existed at the time of payment.

   (10)  Subsection 24 (8) of the Act is amended by striking out "the day this Act comes into force" at the end and substituting "January 1, 2004".

Commencement

   6.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2008 (No. 2) receives Royal Assent.

Same

   (2)  Subsection 5 (9) is deemed to have come into force on October 22, 2008.

Schedule m
Local Roads Boards Act

   1.  The Local Roads Boards Act is amended by adding the following section:

Annual estimate

   10.0.1  (1)  The board shall prepare an estimate of the amount required for the purposes of the board for a year.

Same

   (2)  The estimate for a particular year may be prepared during the year or during the preceding year.

Same

   (3)  In preparing its estimate for a year, a board shall make due allowance for any surplus of any previous year that will be available in the current year and for any uncollectable taxes and for any money to be credited to the board under sections 31 and 32 in the current year.

   2.  Section 21 of the Act is repealed and the following substituted:

Annual levy

Definitions

   21.  (1)  In this section,

"assessment" means the assessment for real property made under the Assessment Act according to the last returned roll; ("évaluation")

"property class" means a class of real property prescribed under the Assessment Act; ("catégorie de biens")

"residential property class" means the residential property class prescribed under the Assessment Act; ("catégorie des biens résidentiels")

"tax ratio" means a tax ratio described in subsection (7). ("coefficient d'impôt")

Tax rates

   (2)  Each year, the board shall levy a separate tax rate on the assessment in each property class in the local roads area of the board.

Adjustments to assessments

   (3)  For the purposes of subsection (2), the assessment in each property class includes any adjustments made under section 32, 33, 34, 39.1 or 40 of the Assessment Act to the assessments on the assessment roll as returned for the taxation year if the adjustments are made on the tax roll before the board determines the tax rate referred to in subsection (2).

Taxes to be levied equally

   (4)  The tax rate shall be levied upon the whole of the assessment for real property in the local roads area of the board according to the amounts assessed and not upon one or more kinds of property or assessment or in different proportions.

Calculation of rates

   (5)  The tax rates shall be calculated as percentages of the assessment in each property class.

Restrictions on rates

   (6)  The tax rates to be levied under this section are subject to the following restrictions:

    1.  The rates must be set so that, when they are levied on the applicable assessment, a sum equal to the amount estimated for the year by the board under subsection 10.0.1 (1) is raised.

    2.  The rates on the different property classes must be in the same proportion to each other as the tax ratios for the property classes are to each other.

What tax ratios are

   (7)  The tax ratios are the ratios that the tax rate for each property class must be to the tax rate for the residential property classes where the residential property class is one.

Regulations

   (8)  The Minister of Finance may make regulations prescribing, for a particular board, the tax ratios or the method for determining tax ratios.

   3.  (1)  Subsection 29.1 (1) of the Act is repealed and the following substituted:

Delegation re tax collection

   (1)  A board may enter into an agreement with the Minister of Finance providing for the delegation to the Minister of Finance of the board's powers under this Act to collect tax.

Timing

   (1.1)  An agreement must be entered into no later than December 1 of the year preceding the first taxation year to which the delegation applies.

Transition

   (1.2)  Despite subsection (1.1), an agreement may be entered into no later than March 1, 2009 for a delegation that applies to the 2009 taxation year.

   (2)  Subsections 29.1 (3) and (4) of the Act are repealed and the following substituted:

Termination of agreement

   (3)  The Minister of Finance may terminate an agreement by giving written notice to the board at least 12 months before the beginning of the taxation year in respect of which agreement ceases to apply.

Same

   (4)  A board may terminate an agreement by serving notice on the Minister of Finance at least 12 months before the beginning of the taxation year in respect of which the agreement ceases to apply.

   4.  Subsection 31 (1) of the Act is repealed and the following substituted:

Credits

   (1)  The money received by the Minister from a board shall be paid into the Consolidated Revenue Fund and credited to that board, and the Minister shall cause to be credited to that board, out of money appropriated therefor by the Legislature, an amount not exceeding twice the amount of the money so received.

Same, tax collectable by the Minister of Finance

   (1.1)  Upon receiving written notice from the Minister of Finance of the amount of tax collectable by the Minister of Finance for a board in respect of a taxation year under an agreement authorized by section 29.1, the Minister shall cause that amount to be credited to the board and the Minister may cause an amount not exceeding twice that amount to be credited to the board out of money appropriated therefor by the Legislature.

   5.  Section 32 of the Act is repealed and the following substituted:

Credits re unoccupied Crown land

   32.  (1)  In addition to the amounts credited to a board by the Minister under section 31, the Minister may annually credit to a board in respect of unoccupied Crown land fronting on a local road in the local roads area an amount equal to the lesser of,

  (a)  the amount prescribed by the regulations; or

  (b)  twice the amount remitted to the Minister by the board under section 30 or, if the board has entered into an agreement under section 29.1, twice the amount of tax collectable by the Minister of Finance under subsection 31 (1.1).

Same

   (2)  Amounts credited under subsection (1) shall be paid out of money appropriated therefor by the Legislature.

Regulations

   (3)  The Minister may make regulations prescribing an amount for the purposes of clause (1) (a).

   6.  The English version of subsection 33 (1) of the Act is amended by striking out "the money credited to each board" and substituting "the amounts credited to each board".

   7.  The Act is amended adding the following section:

Advance re tax not yet collectable by the Minister of Finance

   33.1  (1)  Upon request by the Minister, the Minister of Finance may authorize an advance to be paid from the Consolidated Revenue Fund to the Minister in respect of a local board if both the following circumstances exist:

    1.  The Minister of Finance is authorized by an agreement under section 29.1 to collect the tax for the board for the taxation year.

    2.  The tax is not yet collectable.

Amount of advance

   (2)  The amount of the advance is as determined by the Minister of Finance.

Authority to spend

   (3)  The Minister is authorized to spend the amount advanced in respect of a local board for a purpose described in subsection 33 (1).

Recovery of advance

   (4)  When an amount is credited to the board under subsection 31 (1.1) for the taxation year, the amount advanced shall be recovered into the Consolidated Revenue Fund by way of set off against the amount so credited.

Commencement

   8.  This Schedule comes into force on January 1, 2009.

Schedule n
Northern Services Boards Act

   1.  Section 22 of the Northern Services Boards Act is amended by adding the following subsection:

Transition, interim assessment for 2009

   (2)  The Municipal Property Assessment Corporation shall send the information required by subsection (1) showing the amount of the interim assessment for 2009 to the secretary no later than January 1, 2009.

   2.  (1)  Subsection 23 (4) of the Act is repealed and the following substituted:

When rates to be added

   (4)  No rate shall be imposed under the Provincial Land Tax Act, 2006 for the purposes of the Board unless,

  (a)  the rate, the purpose for which it is to be levied, and the area in which the rate is to be levied, are approved by a majority vote of the inhabitants present and voting at a meeting called for that purpose; and

  (b)  the rate or rates for a taxation year that are to be imposed for the purposes of the Board satisfy the requirements set out in section 23.1.

   (2)  Subsections 23 (6) and (7) of the Act are repealed.

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

Requirements re rates

Definitions

   23.1  (1)  In this section,

"assessment" means the assessment for real property made under the Assessment Act according to the last returned roll; ("évaluation")

"property class" means a class of real property prescribed under the Assessment Act; ("catégorie de biens")

"rate ratio" means a rate ratio described in subsection (7); ("coefficient d'impôt")

"residential property class" means the residential property class prescribed under the Assessment Act. ("catégorie des biens résidentiels")

Application of rates

   (2)  Unless expressly provided otherwise in this Act, the rate or rates to be imposed under the Provincial Land Tax Act, 2006 for the purposes of a Board apply to the assessment in each property class in the Board area.

Adjustments to assessments

   (3)  For the purposes of subsection (2), the assessment in each property class includes any adjustments made under section 32, 33, 34, 39.1 or 40 of the Assessment Act to the assessments on the assessment roll as returned for the taxation year if the adjustments are made on the tax roll before the Minister of Finance levies the rate.

Rates to be equal

   (4)  Unless expressly provided otherwise in this Act, the rate or rates apply to the whole of the assessment for real property in the Board area according to the amounts assessed and not upon one or more kinds of property or assessment or in different proportions.

Calculation of rates

   (5)  The rates set by a Board shall, unless expressly provided otherwise in this Act, be calculated as percentages of the assessment of real property in each property class.

Restrictions on rates

   (6)  The rates are subject to the following restrictions:

    1.  The rates must be set so that, when they are levied on the applicable assessment, a sum equal to the annual estimates for the year by the Board under section 23 is raised.

    2.  The rates on the different property classes must be in the same proportion to each other as the rate ratios for the property classes are to each other.

What rate ratios are

   (7)  The rate ratios are the ratios that the rate for each property class must be to the rate for the residential property classes, where the residential property class is one.

Regulations

   (8)  The Minister of Finance may make regulations prescribing, for a particular Board, the rate ratios or the method for determining rate ratios.

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

Collection of fees under the Provincial Land Tax Act, 2006

   25.1  (1)  A Board may by by-law passed before December 1 in a year request the Minister of Finance to collect under the Provincial Land Tax Act, 2006 in the following year the fees charged by the Board in respect of a service.

Copy of by-law

   (2)  The secretary shall send a copy of the by-law passed under subsection (1) to the Minister of Finance by registered mail immediately after the passing of the by-law.

   5.  (1)  Subsection 26 (1) of the Act is amended by striking out "in the calendar year for which the by-law was passed".

   (2)  Section 26 of the Act is amended by adding the following subsection:

Collection of fees

   (2.1)  Where the Minister of Finance receives a by-law passed under subsection 25.1 (1), the Minister shall collect the fees set out in the by-law and the fees shall be shown on the tax bill under the Provincial Land Tax Act, 2006 in respect of the property as "Fees for the purposes of The Local Services Board of (or Droits perçus aux fins de la régie locale des services publics de) ... (naming the Board)", and shall be collected as if the fees were taxes imposed under that Act.

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

Advances and other payments

Payment re rates

   26.1  (1)  In addition to the amount payable to a Board under subsection 26 (3), the Minister of Finance shall pay to the Board from the Consolidated Revenue Fund an amount equal to the difference, if any, between the rate or rates levied for a taxation year under subsection 26 (1) and the amount collected by the Minister of Finance.

Payment re fees

   (2)  In addition to the amount payable to a Board under subsection 26 (3), the Minister of Finance shall pay to the Board from the Consolidated Revenue Fund an amount equal to the difference, if any, between the amount of fees collectable for a fiscal year by the Minister of Finance and the amount collected.

Status of payments

   (3)  Any amount paid to a Board under subsection (1) or (2) is deemed to be tax levied by the Crown under section 2 of the Provincial Land Tax Act, 2006.

Advance from the Minister of Finance

   (4)  If the Minister of Finance receives a by-law passed under subsection 25 (1) or 25.1 (1), the Minister of Finance may provide advances to the Board from the Consolidated Revenue Fund in respect of any amount that the Minister of Finance is or may become required to pay under subsection (1) or (2) or under subsection 26 (3).

Same

   (5)  Advances under subsection (4) do not bear interest, and the Crown may incur a non-cash expense within the meaning of the Financial Administration Act in connection with the advances.

Recovery of advance

   (6)  The amount advanced to a Board under subsection (4) shall be recovered into the Consolidated Revenue Fund by way of set off against the amount collected by the Minister of Finance for the Board under section 25 or 25.1 and against the amount to be paid to the Board under subsection (1) or (2).

   7.  Subsection 43 (1) of the Act is repealed and the following substituted:

Taxation of real property

   (1)  For the purpose of funding service delivery in a Board area, tax may be levied on all real property in the Board area that is liable to assessment and taxation under the Assessment Act and that is not subject to an exemption under the Provincial Land Tax Act, 2006.

Commencement

   8.  This Schedule comes into force on January 1, 2009.

Schedule o
ONTARIO CAPITAL GROWTH CORPORATION ACT, 2008

CONTENTS
	Definitions
	1.	Definitions
	Corporation
	2.   3.   4.   5.	Corporation established Members Objects Crown agents
	Powers and Duties
	6.   7.   8.   9. 10. 11. 12.	Powers Policies and directives of the Minister Powers and duties of the board Employees and other assistance Immunity of employees and others Fiscal year Business plan
	Financial Matters and Reports
	13. 14. 15. 16. 17.	Status of revenues and assets Financial records, etc. Audit Annual report Other reports
	General
	18. 19. 20. 21.	Winding up the Corporation Regulations Commencement Short title
	______________

Definitions

Definitions

   1.  In this Act,

"board" means the board of directors of the Corporation; ("conseil d'administration")

"Corporation" means the corporation established in section 2; ("Société")

"Minister" means the Minister of Research and Innovation or whatever other member of the Executive Council to whom the administration of this Act is assigned or transferred under the Executive Council Act; ("mi­nistre")

"regulations" means the regulations made under this Act; ("règlements")

"subsidiary" means a corporation that is a subsidiary of the Corporation. ("filiale")

Corporation

Corporation established

   2.  (1)  A corporation to be known in English as Ontario Capital Growth Corporation and in French as Société ontarienne de financement de la croissance is established as a corporation without share capital.

Non-application of Acts

   (2)  The Corporations Act and the Corporations Information Act do not apply to the Corporation.

Members

   3.  (1)  The members of the Corporation shall consist of the members of its board of directors.

Board

   (2)  The board shall consist of at least three and not more than 12 members who are appointed by the Lieutenant Governor in Council.

Remuneration and expenses

   (3)  The Corporation shall pay its members the remuneration and expenses that the Lieutenant Governor in Council determines.

Chair and vice-chair

   (4)  The Lieutenant Governor in Council shall designate one of the members of the Corporation as chair of the board and at least one other member as a vice-chair of the board.

Absence of chair

   (5)  If the chair is absent or otherwise unable to act or if the office is vacant, the vice-chair shall act in the place of the chair.

Objects

   4.  The objects of the Corporation are,

  (a)  to receive, hold, administer and otherwise deal with the interest of the Government of Ontario in the limited partnership known as the Ontario Venture Capital Fund LP;

  (b)  to receive, hold and deal with property, whether real or personal, in connection with the objects described in clause (a); and

   (c)  to carry out the other objects that are prescribed by the regulations.

Crown agents

   5.  (1)  Subject to subsections (2) and (3), the Corporation and its subsidiaries, if any, are Crown agents for all purposes.

Exception

   (2)  The Corporation or a subsidiary may declare in writing in an agreement, security or instrument that it is not acting as a Crown agent for the purposes of the agreement, security or instrument.

Effect of declaration

   (3)  If the Corporation or a subsidiary makes a declaration in accordance with subsection (2), the Corporation or subsidiary shall not be a Crown agent for the purposes of the agreement, security or instrument and the Crown is not liable for any liability or obligation of the Corporation or subsidiary under the agreement, security or instrument.

Powers and Duties

Powers

   6.  (1)  The Corporation has the capacity, rights, powers and privileges of a natural person for carrying out its objects, except as limited under this Act.

Subsidiaries

   (2)  The Corporation shall not establish a subsidiary without the consent of the Lieutenant Governor in Council.

Borrowing and investments

   (3)  The Corporation or a subsidiary shall not borrow, make investments or manage financial risks unless,

  (a)  a by-law of the Corporation or the subsidiary, as the case may be, authorizes the activity and the Minister of Finance has consented to the by-law; and

  (b)  the Ontario Financing Authority co-ordinates and arranges the activity, unless the Minister of Finance agrees otherwise.

Exception

   (4)  Subsection (3) does not apply to investment activities that the Corporation undertakes to carry out its objects described in clause 4 (a).

Policies and directives of the Minister

   7.  (1)  The Minister may issue policies or directives in writing to the Corporation or any subsidiary on matters relating to the exercise of its powers or duties.

Implementation

   (2)  The board shall ensure that the policies and directives issued to the Corporation are implemented promptly and efficiently.

Same, subsidiary

   (3)  The governing body of a subsidiary shall ensure that the policies and directives issued to the subsidiary are implemented promptly and efficiently.

Powers and duties of the board

   8.  (1)  The board shall manage and supervise the affairs of the Corporation in accordance with this Act.

By-laws

   (2)  The board may pass by-laws and resolutions regulating its proceedings and generally for the conduct and management of the affairs of the Corporation.

Conflict of interest, etc.

   (3)  Section 132 (conflict of interest), subsection 134 (1) (standards of care) and section 136 (indemnification) of the Business Corporations Act apply, with necessary modifications, to the Corporation and to the members of the board.

Employees and other assistance

   9.  (1)  Under Part III of the Public Service of Ontario Act, 2006, the Public Service Commission may appoint the employees who are considered necessary for the proper conduct of the business of the Corporation.

Service agreements for employees

   (2)  The Corporation may enter into agreements with any Minister of a Ministry or the head of any Crown agency to have employees of the Crown employed in that Ministry or employees of that Crown agency, as the case may be, provide services to the Corporation.

Professional assistance

   (3)  The Corporation may,

  (a)  engage persons, other than those mentioned in subsection (1) or (2), to provide professional, technical or other assistance to or on behalf of the Corporation; and

  (b)  establish the terms of engagement and provide for the payment of the remuneration and expenses of the persons engaged under clause (a).

Immunity of employees and others

   10.  (1)  No action or other civil proceeding shall be commenced against a member, officer, employee of the Corporation or a subsidiary or against a person engaged by the Corporation for any act done in good faith in the exercise or performance or intended exercise or perfor­mance of a power or duty under this Act, the regulations, the by-laws of the Corporation or a subsidiary or under a directive issued under subsection 7 (1) or for any neglect or default in the exercise or performance in good faith of such a power or duty.

Immunity of the Crown and Crown agencies

   (2)  No action or other civil proceeding shall be commenced against the Crown or a Crown agency for any act, neglect or default by a person mentioned in subsection (1) or for any act, neglect or default by the Corporation or a subsidiary.

Liability of Corporation or subsidiary

   (3)  Subsections (1) and (2) do not relieve the Corporation or a subsidiary of any liability to which it would otherwise be subject in respect of a cause of action arising from any act, neglect or default mentioned in subsection (1).

Fiscal year

   11.  The Corporation's fiscal year commences on April 1 in each year and ends on March 31 in the following year.

Business plan

   12.  (1)  At least six months before the beginning of each fiscal year or by such other date that the Minister specifies, the Corporation shall submit its business plan for the fiscal year to the Minister for approval.

Contents

   (2)  The business plan must be based on a three-year cycle and must include,

  (a)  the Corporation's proposed operating budget for the fiscal year;

  (b)  the Corporation's projected operating budget for each of the next two fiscal years after the fiscal year;

   (c)  the projected revenues of the Corporation for the fiscal year and their sources;

  (d)  the projected operating expenditures of the Corporation for the fiscal year;

  (e)  performance measures establishing targets for the fiscal year; and

    (f)  all other information that the Minister requires.

Changes

   (3)  The Corporation may make changes to its business plan with the approval of the Minister.

Financial Matters and Reports

Status of revenues and assets

   13.  (1)  Despite Part I of the Financial Administration Act, all revenues and assets of the Corporation and its subsidiaries, if any, do not form part of the Consolidated Revenue Fund.

Investment of surplus money

   (2)  The Corporation may temporarily invest any money not immediately required to carry out its objects described in clause 4 (a) in,

  (a)  debt obligations of or guaranteed by the Government of Canada or a province of Canada; or

  (b)  interest bearing accounts and short term certificates of deposit issued or guaranteed by a chartered bank, trust company, credit union or caisse populaire.

Financial records, etc.

   14.  (1)  The Corporation shall maintain financial records for the Corporation and its subsidiaries and shall establish financial, management and information systems that will enable the Corporation to prepare financial statements in accordance with generally accepted accounting principles.

Inspection

   (2)  Upon the request of the Minister, the Corporation and its subsidiaries shall promptly make their financial records available for inspection.

Audit

   15.  (1)  The board shall appoint one or more licensed public accountants to audit the accounts and financial transactions of the Corporation and its subsidiaries for the previous fiscal year.

Auditor General

   (2)  The Auditor General may also audit the accounts and financial transactions of the Corporation or any of its subsidiaries for any fiscal year.

Minister-appointed auditor

   (3)  The Minister may at any time appoint a licensed public accountant, other than the person appointed under subsection (1), to audit the accounts and financial transactions of the Corporation or any of its subsidiaries for any period of time that the Minister specifies.

Co-operation by Corporation

   (4)  If the Minister requires that an audit of the Corporation be conducted under subsection (3), the Corporation shall co-operate fully with the person performing the audit to facilitate the audit.

Annual report

   16.  (1)  The board shall submit an annual report on its affairs to the Minister within 90 days after the end of each fiscal year.

Contents

   (2)  The report shall include the audited financial statements of the Corporation.

Tabling

   (3)  The Minister shall,

  (a)  submit the report to the Lieutenant Governor in Council;

  (b)  lay the report before the Assembly if it is in session; and

   (c)  deposit the report with the Clerk of the Assembly if the Assembly is not in session.

Other reports

   17.  The Corporation shall promptly prepare and submit to the Minister any other report that the Minister requires.

General

Winding up the Corporation

   18.  (1)  The Lieutenant Governor in Council may by order require the board of directors to wind up the affairs of the Corporation.

Approved plan required

   (2)  The board shall prepare a proposed plan for winding up the Corporation and transferring its assets and liabilities and shall give the proposed plan to the Lieutenant Governor in Council for approval.

Restriction

   (3)  The plan for winding up the Corporation may provide for,

  (a)  liquidating assets and transferring the proceeds to the Consolidated Revenue Fund or to an agency of the Crown; and

  (b)  transferring assets and liabilities to the Crown in right of Ontario or to an agency of the Crown.

Implementation

   (4)  When the Lieutenant Governor in Council approves the proposed plan, the board of directors shall wind up the affairs of the Corporation and transfer its assets and liabilities, including transferring the proceeds from the liquidation of assets, in accordance with the plan.

Regulations

   19.  (1)  The Lieutenant Governor in Council may make regulations,

  (a)  prescribing objects of the Corporation for the purpose of clause 4 (c);

  (b)  specifying the objects, powers and duties of subsidiaries and providing for the management of subsidiaries;

   (c)  respecting any other matter that the Lieutenant Governor in Council considers necessary or advisable to carry out effectively the intent and purpose of this Act.

Scope

   (2)  A regulation may impose limits, conditions, requirements or restrictions and may be general or particular in its application.

Commencement

   20.  The Act set out in this Schedule comes into force on a day to be named by proclamation of the Lieutenant Governor.

Short title

   21.  The short title of the Act set out in this Schedule is the Ontario Capital Growth Corporation Act, 2008.

Schedule p
ottawa congress Centre Act

   1.  The short title of the Ottawa Congress Centre Act is repealed and the following substituted:

Ottawa Convention Centre Corporation Act

   2.  The definition of "Centre" in section 1 of the Act is repealed and the following substituted:

"Centre" means Ottawa Convention Centre Corporation; ("Centre")

   3.  Subsection 2 (1) of the Act is repealed and the following substituted:

Corporation continued

   (1)  The corporation known in English as the Ottawa Congress Centre and in French as Centre des congrès d'Ottawa is continued as a corporation without share capital known as the Ottawa Convention Centre Corporation in English and in French as Société du Centre des congrès d'Ottawa.

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

Objects

   (1)  The objects of the Centre are to operate, maintain and manage an international class convention centre facility in the City of Ottawa in a manner that will promote and develop tourism and industry in Ontario.

Name of facility

   (1.1)  The name of the facility mentioned in subsection (1) shall be,

  (a)  the Ottawa Convention Centre in English and Centre des congrès d'Ottawa in French; or

  (b)  whatever other name that the Board specifies and the Minister has approved.

   (2)  Subsection 6 (2) of the Act is amended by adding the following clause:

(0.a) with the approval of the Minister, to specify a name of the convention centre facility mentioned in subsection (1) for the purpose of clause (1.1) (b);

   5.  Subsection 11 (2) of the Act is amended by striking out "Treasurer of Ontario" and substituting "Minister of Finance".

Commencement

   6.  This Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2008 (No. 2) receives Royal Assent.

Schedule q
provincial land tax Act, 2006

   1.  Section 6 of the Provincial Land Tax Act, 2006 is amended by adding the following subsection:

Billing and payments

   (1.1)  If the Minister sends an assessed owner more than one tax bill for property tax payable for the year, the tax payable for the period specified in the bill shall be billed in the prescribed manner and shall be paid in accordance with the regulations.

   2.  Subsection 8 (1) of the Act is amended by striking out "all or part of the property tax levied on" in the portion before clause (a) and substituting "all or part of the tax levied under this Act or the Education Act".

   3.  Subsection 20 (1) of the Act is repealed and the following substituted:

Amounts collected on behalf of other bodies

   (1)  If amounts payable under one or more prescribed Acts to one or more bodies specified in those Acts are to be collected as if the amounts were tax payable under this Act, the Minister shall apply all amounts collected under this Act in respect of a property in the prescribed manner.

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

Authority to enter into agreements with municipalities

   24.1  The Minister, on behalf of Her Majesty in right of Ontario, may enter into and amend agreements with municipalities under which the municipality will act as agent of the Minister respecting the administration and enforcement of this Act.

   5.  Subsection 25 (1) of the Act is amended by adding the following clauses:

   (k)  providing for the payment of interest on any refund, rebate, deferral or cancellation of property tax that is authorized by this Act and prescribing the rate thereof;

    (l)  prescribing the manner in which property tax payable is billed and paid for the purposes of subsection 6 (1.1).

Commencement

   6.  This Schedule comes into force on January 1, 2009.

Schedule r
Securities Act

   1.  Section 127 of the Securities Act is amended by adding the following subsection:

Inter-jurisdictional enforcement

   (10)  Without limiting the generality of subsections (1) and (5), an order may be made under subsection (1) or (5) in respect of a person or company if any of the following circumstances exist:

    1.  The person or company has been convicted in any jurisdiction of an offence arising from a transaction, business or course of conduct related to securities.

    2.  The person or company has been convicted in any jurisdiction of an offence under a law respecting the buying or selling of securities.

    3.  The person or company has been found by a court in any jurisdiction to have contravened the laws of the jurisdiction respecting the buying or selling of securities.

    4.  The person or company is subject to an order made by a securities regulatory authority in any jurisdiction imposing sanctions, conditions, restrictions or requirements on the person or company.

    5.  The person or company has agreed with a securities regulatory authority in any jurisdiction to be made subject to sanctions, conditions, restrictions or requirements.

Commencement

   2.  This Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2008 (No. 2) receives Royal Assent.

SCHEDULE s
SOCIAL HOUSING REFORM ACT, 2000

   1.  Subsection 134 (5) of the Social Housing Reform Act, 2000 is repealed.

   2.  Section 135 of the Act is amended by striking out "In sections 136 to 138" at the beginning and substituting "In section 136".

   3.  Section 136 of the Act is repealed and the following substituted:

GTA equalization

   136.  (1)  The rules governing the amount of housing costs payable by GTA service managers are the rules set out in this section.

Application of certain provisions

   (2)  Sections 122 to 127 and subsection 128 (1) apply in respect of GTA service managers.

Regulation prescribing amounts of payments

   (3)  The Lieutenant Governor in Council may make a regulation prescribing amounts, including a nil amount, that a GTA service manager is required to pay to one or more of the other GTA service managers for each of 2007 and subsequent years in respect of past, present and future housing costs of the GTA service managers.

Notice to service manager

   (4)  The Minister shall give to a GTA service manager required to pay a prescribed amount a written notice setting out the amounts to be paid, the date on which those amounts are payable and such other information as the Minister considers appropriate.

When notice to be given

   (5)  The notice under subsection (4) shall be given on or before the earliest of the dates on which the amounts are payable.

Payment

   (6)  A GTA service manager shall make payment to the Minister of Finance in accordance with the notice, and the Minister of Finance shall remit the payment to the other service manager or service managers.

Interest and penalties

   (7)  If a GTA service manager does not pay the Minister of Finance the amount payable under a notice given under subsection (4), the GTA service manager to which the amount is owed may charge the service manager interest and penalties in accordance with the regulations.

Collection of amounts payable

   (8)  An amount payable under a notice given under subsection (4) is a debt of the GTA service manager owing to the other GTA service manager on and after the due date set out in the notice, and the debt together with any interest or penalty that is charged on the debt under this Act may be recovered by any remedy or procedure available by law to the GTA service manager.

Same

   (9)  A GTA service manager may set off against amounts it owes to another GTA service manager any amount payable by the other GTA service manager to it under this section.

   4.  Section 137 of the Act is repealed.

   5.  Section 138 of the Act is repealed.

   6.  (1)  Paragraph 17 of subsection 174 (1) of the Act is repealed.

   (2)  Paragraph 18 of subsection 174 (1) of the Act is amended by striking out "(9)" and substituting "(7)".

   (3)  Paragraphs 19, 20 and 21 of subsection 174 (1) of the Act are repealed.

Commencement

   7.  This Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2008 (No. 2) receives Royal Assent.

Schedule t
Supplementary Interim Appropriation Act, 2008

Interpretation

   1.  (1)  Expressions used in this Act have the same meaning as in the Supply Act, 2008 unless the context requires otherwise.

Same

   (2)  In this Act, a reference to the estimates and supplementary estimates for 2008-09 means the estimates and supplementary estimates for the fiscal year ending on March 31, 2009 as tabled in the Assembly on or before March 31, 2009.

Additional amounts to be paid out of CRF

   2.  All amounts authorized under sections 3, 4 and 5 to be paid out of the Consolidated Revenue Fund are in addition to the amounts authorized to be paid out of the Consolidated Revenue Fund under sections 2, 3 and 4 of the Interim Appropriation Act, 2008.

Expenses of the public service

   3.  For the fiscal year ending on March 31, 2009, amounts not exceeding a total of $32,474,349,400 may be paid out of the Consolidated Revenue Fund or incurred as non-cash expenses to be applied to the expenses of the public service that are not otherwise provided for and the money shall be applied in accordance with the votes and items set out in the estimates and supplementary estimates for 2008-09.

Investments of the public service

   4.  For the fiscal year ending on March 31, 2009, amounts not exceeding a total of $1,110,818,500 may be paid out of the Consolidated Revenue Fund to be applied to the investments of the public service in capital assets, loans and other investments that are not otherwise provided for and the money shall be applied in accordance with the votes and items set out in the estimates and supplementary estimates for 2008-09.

Expenses of the Legislative Offices

   5.  For the fiscal year ending on March 31, 2009, amounts not exceeding a total of $62,907,500 may be paid out of the Consolidated Revenue Fund to be applied to the expenses of the Legislative Offices that are not otherwise provided for and the money shall be applied in accordance with the votes and items set out in the estimates and supplementary estimates for 2008-09.

Expenditures of the public service

   6.  An expenditure in the votes and items set out in the estimates and supplementary estimates for 2008-09 may be incurred by the Crown through any ministry to which, during the fiscal year ending on March 31, 2009, responsibility has been given for the program or activity that includes that expenditure.

Commencement

   7.  The Act set out in this Schedule is deemed to have come into force on April 1, 2008.

Short title

   8.  The short title of the Act set out in this Schedule is the Supplementary Interim Appropriation Act, 2008.

schedule u
taxation act, 2007

   1.  Subsection 13 (2) of the Taxation Act, 2007 is repealed and the following substituted:

Specified percentage

   (2)  For the purposes of clause (1) (b), the specified percentage is,

  (a)  39.0182 per cent for a taxation year ending before January 1, 2010;

  (b)  42.84 per cent for a taxation year ending after December 31, 2009 and before January 1, 2011;

   (c)  46.8501 per cent for a taxation year ending after December 31, 2010 and before January 1, 2012; and

  (d)  51.2658 per cent for a taxation year ending after December 31, 2011.

   2.  Clause (c) of the definition of "C" in subsection 57 (1) of the Act is amended by striking out "and" at the end of subclause (iv), by adding "and" at the end of subclause (v) and by adding the following subclause:

         (vi)  the amount of any gain in respect of a disposition of property by the corporation that is described in subparagraph 38 (a.1) (iii) or paragraph 38 (a.3) of the Federal Act if the gift to a qualified donee for the purposes of that provision occurs on or after February 26, 2008,

   3.  The definition of "eligible educational institution" in subsection 88 (21) of the Act is amended by striking out "and" at the end of clause (b), by adding "and" at the end of clause (c) and by adding the following clause:

  (d)  Redeemer University College;

   4.  (1)  Subsections 96 (3), (4) and (5) of the Act are repealed and the following substituted:

Expenditure limit

   (3)  Subject to subsections (4.2) and (6), the amount of a corporation's expenditure limit for a taxation year for the purposes of subsection (2) is the amount calculated using the formula,

($7 million – 10A) ×

in which,

  "A"  is the greater of,

         (a)  $400,000, and

         (b)  the amount that is,

                   (i)  if the corporation is not associated with any other corporation in the taxation year, the corporation's taxable income under the Federal Act for its immediately preceding taxation year, determined before taking into consideration the specified future tax consequences for that preceding year, or

                  (ii)  if the corporation is associated with one or more corporations in the taxation year, the associated group's taxable income for the corporation's immediately preceding taxation year, as determined under subsection (4), and

  "B"  is,

         (a)  nil if,

                   (i)  the corporation's specified capital amount for the immediately preceding  taxation year is not more than $25 million and the corporation is not associated with any other corporation in the taxation year, or

                  (ii)  the corporation is associated with one or more corporations in the taxation year and the associated group's specified capital amount for the preceding taxation year as determined under subsection (4.1) is not more than $25 million, or

         (b)  in any other case, the lesser of $25 million and the amount by which the corporation's specified capital amount for the immediately preceding taxation year or, if the corporation is associated with one or more corporations in the taxation year, the associated group's specified capital amount for the immediately preceding taxation year exceeds $25 million.

Associated group's taxable income

   (4)  If a corporation is associated with one or more corporations in a particular taxation year, the associated group's taxable income for the corporation's immediately preceding taxation year is the sum of,

  (a)  the corporation's taxable income under the Federal Act for its last taxation year ending in the last calendar year that ended before the end of the particular taxation year, determined before taking into consideration the specified future tax consequences for that preceding year; and

  (b)  the sum of all amounts each of which is the taxable income of an associated corporation under the Federal Act for the associated corporation's last taxation year ending in the last calendar year that ended before the end of the particular taxation year, determined before taking into consideration the specified future tax consequences for that last taxation year.

Associated group's specified capital amount

   (4.1)  If a corporation is associated with one or more corporations in a particular taxation year, the associated group's taxable capital amount for the immediately preceding taxation year is the sum of,

  (a)  the corporation's specified capital amount for its last taxation year ending in the last calendar year that ended before the end of the particular taxation year; and

  (b)  the sum of all amounts each of which is the specified capital amount of a corporation with which the corporation is associated in the taxation year, for the associated corporation's last taxation year ending in the last calendar year that ended before the end of the particular taxation year.

Transitional, February 26, 2008

   (4.2)  A corporation's expenditure limit for a taxation year that straddles February 26, 2008 is equal to the amount determined by the formula,

A – [(A – B) × (C/D)]

in which,

  "A"  is the amount that would be determined in respect of the corporation for the taxation year under subsection (3) if this section were read without reference to this subsection,

  "B"  is the amount that would have been determined in respect of the corporation for the taxation year under subsection 43.3 (3.2) of the Corporations Tax Act if the taxation year commenced after May 4, 1999 and before February 26, 2008,

  "C"  is the number of days in the taxation year that are before February 26, 2008, and

  "D"  is the number of days in the taxation year.

Application of federal rules

   (5)  Subsections 127 (10.21), (10.22), (10.23), (10.3), (10.4) and (10.6) of the Federal Act apply with necessary modifications for the purposes of subsection (3) and, without limiting the generality of the foregoing, in the application of section 127 of the Federal Act for the purposes of subsection (3), a reference to a Canadian-controlled private corporation is deemed to be a reference to a qualifying corporation as defined in subsection (7).

   (2)  Subsection 96 (18) of the Act is amended by adding the following definition:

"associated group" means, in respect of a corporation for a taxation year, the corporation and all corporations associated with the corporation in the taxation year; ("groupe")

   5.  The definition of "adjusted income" in subsection 98 (1) of the Act is repealed and the following substituted:

"adjusted income" means, in respect of an individual for a taxation year, the individual's adjusted income as determined for the purposes of subdivision a.1 of Division E of Part I of the Federal Act; ("revenu rajusté")

   6.  The definition of "C" in subsection 99 (3) of the Act is repealed and the following substituted:

  "C"  is the greater of $4,000 and the individual's adjusted income for the year.

   7.  Subsections 100 (4) and (5) of the Act are repealed and the following substituted:

Amount for purposes of cl. (3) (a)

   (4)  Subject to subsection (6), the amount for the purposes of clause (3) (a) is the lesser of $1,125 and the amount, if any, calculated using the formula,

(A + B) – [0.04 × (C – $22,000)]

in which,

  "A"  is the individual's property tax credit equal to the sum of,

         (a)  the lesser of $625 and the individual's occupancy cost for the year, and

         (b)  an amount equal to 10 per cent of the individual's occupancy cost for the year,

  "B"  is the individual's sales tax credit equal to the sum of,

         (a)  $100 in respect of the individual, and

         (b)  $50 in respect of every qualified dependant of the individual, and

  "C"  is the greater of $22,000 and the individual's adjusted income for the year.

Amount for purposes of cl. (3) (b)

   (5)  Subject to subsection (6), the amount for the purposes of clause (3) (b) is the lesser of $1,125 and the amount, if any, calculated using the formula,

(A + B) – [0.04 × (C – $24,300)]

in which,

  "A"  is the individual's property tax credit equal to the sum of,

         (a)  the lesser of $625 and the individual's occupancy cost for the year, and

         (b)  an amount equal to 10 per cent of the individual's occupancy cost for the year,

  "B"  is the individual's sales tax credit equal to the sum of,

         (a)  $100 in respect of the individual,

         (b)  $100 in respect of the individual's qualifying spouse or qualifying common-law partner, and

          (c)  $50 in respect of every qualified dependant of the individual, and

  "C"  is the greater of $24,300 and the individual's adjusted income for the year.

Reduction in amount of property tax credit

   (6)  If an individual receives a grant under section 104.1 for the year, the amount determined in respect of the senior for the year as "A" in subsection (4) or as "A" in subsection (5), as the case may be, is reduced by the amount, if any, by which the sum of "A" and "D" exceeds the greater of "A" and "E" where,

  "A"  is the amount determined in respect of the senior for the year as "A" in subsection (4) or as "A" in subsection (5), as the case may be, before the application of this subsection,

  "D"  is the amount of the grant under section 104.1 which the individual received for the year, and

  "E"  is the amount of the individual's occupancy cost for the year as determined for the purposes of this Division.

   8.  (1)  Subsection 104.1 (1) of the Act is amended by adding the following definition:

"municipal tax" means,

  (a)  taxes for municipal and school purposes that are levied in respect of real property in Ontario,

  (b)  taxes levied for local improvements to real property in Ontario,

   (c)  taxes levied under the Provincial Land Tax Act, 2006 or the Local Roads Boards Act, and

  (d)  such other type of tax, charge or rate as may be prescribed by the Minister; ("impôts municipaux")

   (2)  The definition of "property tax" in subsection 104.1 (1) of the Act is repealed and the following substituted:

"property tax" means municipal tax or a type of payment prescribed by the Minister. ("impôt foncier")

   (3)  Paragraphs 5 and 6 of subsection 104.1 (2) of the Act are repealed and the following substituted:

    5.  The individual or his or her cohabiting spouse or common-law partner,

            i.  owned and occupied a designated principal residence on December 31 of the previous taxation year, or

           ii.  occupied a designated principal residence on December 31 of the previous taxation year that is prescribed by the Minister or that satisfies such conditions as may be prescribed by the Minister.

    6.  The individual was not confined to a prison or similar institution on December 31 of the previous taxation year and is not confined to a prison or similar institution for the first 179 days in the taxation year.

   (4)  Subsection 104.1 (3) of the Act is amended by striking out the portion before the formula and substituting the following:

Amount of senior homeowners' property tax grant

   (3)  An individual who is an eligible senior for a taxation year and complies with the requirements of this section is deemed to have made an overpayment on account of tax payable under this Act in the amount calculated using the following formula and is entitled to a senior homeowners' property tax grant for the taxation year equal to that amount:

.     .     .     .     .

   (5)  Section 104.1 of the Act is amended by adding the following subsection:

Exception

   (4.1)  An eligible senior shall not apply for a grant under this section at a time when the senior is confined to a prison or similar institution.

   (6)  Subsection 104.1 (10) of the Act is repealed and the following substituted:

Death

   (10)  The following rules apply if an eligible senior is entitled to a grant under this section for a taxation year but dies before applying for the grant or after applying for the grant and before receiving it:

    1.  If the eligible senior had no cohabiting spouse or common-law partner entitled to the grant for the year, the eligible senior's estate may apply for the grant, if the senior died before applying for it, and may receive and retain the grant for which either it or the eligible senior applied for the year.

    2.  If the eligible senior leaves a surviving co-habiting spouse or common-law partner entitled to the grant for the year, the co-habiting spouse or common-law partner, or his or her estate if he or she subsequently dies, may receive and retain the grant if the eligible senior applied for it before his or her death.

   (7)  Subsection 104.1 (15) of the Act is amended by striking out "under paragraph 2 of subsection (10) or subsection (13)" and substituting "under subsection (13)".

   (8)  Section 104.1 of the Act is amended by adding the following subsection:

No interest payable

   (17)  No interest is payable on the amount of a grant paid under this section or repayable by an individual under this section.

   9.  Subsection 137 (1) of the Act is repealed and the following substituted:

Withholding

   (1)  Subsections 153 (1), (1.1), (1.2), (1.4) and (3) of the Federal Act apply for the purposes of this Act.

Commencement

   10.  (1)  Subject to subsections (2), (3), (4) and (5), this Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2008 (No. 2) receives Royal Assent.

Same

   (2)  Sections 2, 5, 6, 7 and 8 come into force on January 1, 2009.

Same

   (3)  Section 3 is deemed to have come into force on January 1, 2008.

Same

   (4)  Section 4 is deemed to have come into force on February 26, 2008.

Same

   (5)  Section 9 is deemed to have come into force on June 18, 2008.

Schedule v
amendments to various acts consequential to the enactment of the Taxation Act, 2007

Business Corporations Act

   1.  Subsection 241 (1) of the Business Corporations Act is amended by adding the following paragraph:

  6.1  Taxation Act, 2007.

Community Small Business Investment Funds Act

   2.  (1)  The definition of "permanent establishment" in subsection 1 (1) of the Community Small Business Investment Funds Act is repealed and the following substituted:

"permanent establishment" means,

  (a)  in respect of a corporation, a permanent establishment as defined by subsection 1 (1) of the Taxation Act, 2007, or

  (b)  in respect of a partnership, a permanent establishment determined under subsection 1 (1) of the Taxation Act, 2007 as if the partnership were a corporation; ("établissement stable")

   (2)  Clause (b) of the definition of "qualifying corporation" in subsection 1 (1) of the Act is amended by adding "or subdivision b of Division E of Part III of the Taxation Act, 2007" after "section 66.1 of the Corporations Tax Act" at the end.

   (3)  Subsection 13 (3) of the Act is amended by striking out "under the Income Tax Act or the Income Tax Act (Canada)" and substituting "under the Income Tax Act, the Taxation Act, 2007 or the Income Tax Act (Canada)".

   (4)  Clause (b) of the definition of "eligible investor" in subsection 18.2 (1) of the Act is amended by adding "or subdivision b of Division E of Part III of the Taxation Act, 2007" after "section 66.1 of the Corporations Tax Act" at the end.

   (5)  The definition of "qualifying financial institution" in subsection 18.2 (1) of the Act is amended by adding "or subdivision b of Division E of Part III of the Taxation Act, 2007" after "section 66.1 of the Corporations Tax Act" at the end.

   (6)  Clause (e) of the definition of "within the community" in subsection 18.2 (1) of the Act is amended by striking out "section 43.9 of the Corporations Tax Act" in the portion before subclause (i) and substituting "section 97 of the Taxation Act, 2007".

   (7)  Paragraph 5.1 of subsection 18.3 (1) of the Act is amended by striking out "section 43.9 of the Corporations Tax Act" and substituting "section 97 of the Taxation Act, 2007".

   (8)  The definition of "eligible research institute" in subsection 18.11 (1) of the Act is amended by striking out "subsection 43.9 (29) of the Corporations Tax Act" and substituting "subsection 97 (27) of the Taxation Act, 2007".

   (9)  Subsection 24 (1) of the Act is amended by striking out "the Income Tax Act or the Corporations Tax Act" and substituting "the Income Tax Act, the Corporations Tax Act or the Taxation Act, 2007".

   (10)  Subsection 24 (2) of the Act is amended by striking out "the Income Tax Act or the Corporations Tax Act" and substituting "the Income Tax Act, the Corporations Tax Act or the Taxation Act, 2007".

   (11)  Subsection 25 (3) of the Act is amended by adding "or the Taxation Act, 2007" after "the Income Tax Act" at the end.

   (12)  Paragraph 7.0.1 of subsection 25 (4) of the Act is amended by striking out "the Income Tax Act" in the portion before subparagraph i and substituting "the Income Tax Act or the Taxation Act, 2007".

   (13)  Paragraph 7.1 of subsection 25 (4) of the Act is amended by striking out "Income Tax Act" in the portion before subparagraph i and substituting "Taxation Act, 2007".

   (14)  Paragraph 7.2 of subsection 25 (4) of the Act is amended by striking out "Income Tax Act" in the portion before subparagraph i and substituting "Taxation Act, 2007".

   (15)  Paragraph 8.0.1 of subsection 25 (4) of the Act is amended by striking out "Income Tax Act" in the portion before subparagraph i and substituting "Income Tax Act or the Taxation Act, 2007".

   (16)  Paragraph 8.1 of subsection 25 (4) of the Act is amended by striking out "Income Tax Act" in the portion before subparagraph i and substituting "Taxation Act, 2007".

   (17)  Paragraph 8.2 of subsection 25 (4) of the Act is amended by striking out "Income Tax Act" in the portion before subparagraph i and substituting "Taxation Act, 2007".

   (18)  Subsection 25 (4.2) of the Act is amended by adding "or the Taxation Act, 2007" after "the Corporations Tax Act" in the portion before the formula.

   (19)  The definition of "B" in subsection 25 (4.2) of the Act is amended by adding "or subdivision b of Division E of Part III of the Taxation Act, 2007" after "section 66.1 of the Corporations Tax Act" at the end.

   (20)  Clauses 25 (7) (b) and (c) of the Act are repealed and the following substituted:

  (b)  unless permitted by the regulations, the Class A shares to which the tax credit relates do not constitute a type of security that entitles the holder, in respect of the acquisition of those shares,

           (i)  to claim against tax otherwise payable a tax credit under the Income Tax Act, the Income Tax Act (Canada), the Corporations Tax Act, or the Taxation Act, 2007, other than a labour sponsored investment fund corporation tax credit under the Income Tax Act, the Taxation Act, 2007 or section 127.4 of the Income Tax Act (Canada),

          (ii)  to claim a deduction from income under the Income Tax Act, the Income Tax Act (Canada), the Corporations Tax Act, or the Taxation Act, 2007, or

         (iii)  to receive any other financial assistance from any government, municipality or public authority;

   (c)  no tax credit has been previously allowed under the Income Tax Act, the Corporations Tax Act or the Taxation Act, 2007 in respect of the shares to which the tax credit certificate relates;

   (21)  Subsection 27 (8) of the Act is amended by striking out "under the Income Tax Act" and substituting "under the Income Tax Act, the Taxation Act, 2007".

   (22)  Clause (b) of the definition of "P" in subsection 28.1 (1) of the Act is amended by adding "or subdivision b of Division E of Part III of the Taxation Act, 2007" after "section 66.1 of the Corporations Tax Act".

   (23)  Subsection 29 (1) of the Act is amended by striking out "under Part II of the Corporations Tax Act" and substituting "under Part II of the Corporations Tax Act or Part III of the Taxation Act, 2007".

Electricity Act, 1998

   3.  Section 2 of the Electricity Act, 1998 is amended by adding the following subsection:

Corporations Tax Act references

   (8)  Any reference to the Corporations Tax Act in this Act shall be deemed to be a reference to that Act as it applied to corporations for taxation years under that Act ending on or before December 31, 2008.

Limitations Act, 2002

   4.  The Table in the Schedule to the Limitations Act, 2002 is amended by adding the following:

Taxation Act, 2007

section 139

Mining Tax Act

   5.  Section 1 of the Mining Tax Act is amended by adding the following subsection:

Corporations Tax Act references

   (4)  Any reference to the Corporations Tax Act in this Act shall be deemed to be a reference to that Act as it applied to corporations for taxation years under that Act ending on or before December 31, 2008.

Municipal Extra-Territorial Tax Act

   6.  Clause 12 (a) of the Municipal Extra-Territorial Tax Act is repealed and the following substituted:

  (a)  a corporation tax, for the purposes of section 16 of the Corporations Tax Act as that section read on December 31, 2008; and

Ontario Disability Support Program Act, 1997

   7.  (1)  Clause 53 (2) (b) of the Ontario Disability Support Program Act, 1997 is amended by striking out "the Income Tax Act, the Income Tax Act (Canada)" and substituting "the Income Tax Act, the Taxation Act, 2007, the Income Tax Act (Canada)".

   (2)  Clause 53 (2) (c) of the Act is amended by striking out "the Income Tax Act, the Income Tax Act (Canada)" and substituting "the Income Tax Act, the Taxation Act, 2007, the Income Tax Act (Canada)".

   (3)  Clause 56 (3) (b) of the Act is amended by striking out "the Income Tax Act or the Income Tax Act (Canada)" and substituting "the Income Tax Act, the Taxation Act, 2007 or the Income Tax Act (Canada)".

Ontario Guaranteed Annual Income Act

   8.  Subsection 10 (2) of the Ontario Guaranteed Annual Income Act is amended by adding "or section 84 of the Taxation Act, 2007" after "subsection 8 (10) of the Income Tax Act" in the portion after clause (b).

Ontario Works Act, 1997

   9.  (1)  Clause 71 (2) (b) of the Ontario Works Act, 1997 is amended by striking out "the Income Tax Act, the Income Tax Act (Canada)" and substituting "the Income Tax Act, the Taxation Act, 2007, the Income Tax Act (Canada)".

   (2)  Clause 71 (2) (c) of the Act is amended by striking out "the Income Tax Act, the Income Tax Act (Canada)" and substituting "the Income Tax Act, the Taxation Act, 2007, the Income Tax Act (Canada)".

   (3)  Clause 72 (2) (b) of the Act is amended by striking out "the Income Tax Act, the Income Tax Act (Canada)" and substituting "the Income Tax Act, the Taxation Act, 2007, the Income Tax Act (Canada)".

   (4)  Clause 72 (2) (c) of the Act is amended by striking out "the Income Tax Act, the Income Tax Act (Canada)" and substituting "the Income Tax Act, the Taxation Act, 2007, the Income Tax Act (Canada)".

   (5)  Clause 75 (3) (b) of the Act is amended by striking out "the Income Tax Act or the Income Tax Act (Canada)" and substituting "the Income Tax Act, the Taxation Act, 2007 or the Income Tax Act (Canada)".

Proceedings Against the Crown Act

   10.  Subsection 2 (1) of the Proceedings Against the Crown Act is amended by adding "the Taxation Act, 2007" after "the Retail Sales Tax Act".

Social Housing Reform Act, 2000

   11.  (1)  Clause 163 (2) (b) of the Social Housing Reform Act, 2000 is amended by striking out "the Income Tax Act, the Income Tax Act (Canada)" and substituting "the Income Tax Act, the Taxation Act, 2007, the Income Tax Act (Canada)".

   (2)  Clause 163 (2) (c) of the Act is amended by striking out "the Income Tax Act, the Income Tax Act (Canada)" and substituting "the Income Tax Act, the Taxation Act, 2007, the Income Tax Act (Canada)".

   (3)  Clause 164 (2) (b) of the Act is amended by striking out "the Income Tax Act, the Income Tax Act (Canada)" and substituting "the Income Tax Act, the Taxation Act, 2007, the Income Tax Act (Canada)".

   (4)  Clause 164 (2) (c) of the Act is amended by striking out "the Income Tax Act, the Income Tax Act (Canada)" and substituting "the Income Tax Act, the Taxation Act, 2007, the Income Tax Act (Canada)".

Commencement

   12.  This Schedule comes into force on January 1, 2009.

schedule w
tobacco tax act

   1.  (1)  Subsection 2 (1.8) of the Tobacco Tax Act is amended by striking out "the importer or manufacturer" and substituting "a wholesaler, importer or manufacturer".

   (2)  Subsection 2 (7.1) of the Act is repealed and the following substituted:

Penalty

   (7.1)  Every person who knowingly fails to pay tax as imposed by this section at the time the person is required to do so shall pay a penalty, when assessed for it, equal to the sum of,

  (a)  three times the amount of the tax payable by that person; and

  (b)  the amount of,

           (i)  $500 if the person has not been previously assessed a penalty under this subsection or under subsection 24 (12), 29 (3) or (4), 29.1 (6) or (7) or 34 (2),

          (ii)  $2,500 if the person has previously been assessed a penalty under this subsection or under subsection 24 (12), 29 (3) or (4), 29.1 (6) or (7) or 34 (2), but has not been previously assessed more than one penalty in total,

         (iii)  $5,000 if the person has previously been assessed more than one penalty in total under this subsection and under subsection 24 (12), 29 (3) or (4), 29.1 (6) or (7) or 34 (2).

   2.  Subsection 5 (11.1) of the Act is repealed and the following substituted:

Penalty on unregistered importer

   (11.1)  Every person who operates as an importer in Ontario without holding a registration certificate issued under this section shall pay a penalty, when assessed for it, equal to the sum of,

  (a)  three times the amount of the tax that would be payable under section 2 if the tobacco imported into Ontario by the person during the period when the person did not hold a subsisting registration certificate had been sold to a consumer liable to pay tax under this Act; and

  (b)  the amount of,

           (i)  $500 if this is the first penalty assessed against the person under this Act for operating as an importer in Ontario without holding a subsisting registration certificate under this section,

          (ii)  $2,500 if the person has been assessed a penalty under this Act only once before for operating as an importer in Ontario without holding a subsisting registration certificate under this section, or

         (iii)  $5,000 if the person has been assessed a penalty under this Act at least twice before for operating as an importer in Ontario without holding a subsisting registration certificate under this section.

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

Equipment for manufacturing cigarettes

   7.0.1  (1)  Every person who imports into Ontario or possesses in Ontario equipment for manufacturing cigarettes is deemed to be a manufacturer for the purposes of subsections 7 (1), (2) and (3).

Offence

   (2)  Every person who imports into Ontario or possesses in Ontario equipment for manufacturing cigarettes without holding a registration certificate issued under subsection 7 (1) or who, being the holder of a certificate issued under subsection 7 (1), contravenes any condition or restriction contained in the certificate or fails to comply with subsection 7 (3) is guilty of an offence and on conviction is liable,

  (a)  to a fine of not less than $1,000 and not more than $10,000; and

  (b)  in respect of a conviction for importing into Ontario or possessing in Ontario equipment for manufacturing cigarettes without holding a registration certificate issued under subsection 7 (1), to an additional fine of not less than three times the amount of tax that would be payable under section 2 had the tobacco manufactured by the person during the period when the person did not hold a certificate been sold to a consumer liable to pay tax under this Act.

Penalty, failure to register

   (3)  Every person who imports into Ontario or possesses in Ontario equipment for manufacturing cigarettes without holding a registration certificate issued under subsection 7 (1) shall pay to the Minister a penalty, when assessed therefor, in an amount equal to the tax that would be payable under this Act on the volume of tobacco that the person manufactured during the period that the person did not hold a registration certificate, calculated as if that tobacco had been purchased by a consumer.

Seizure of equipment

   (4)  A person authorized by the Minister under subsection 23 (1) may, on an inspection under that subsection and without a warrant, seize, impound, hold and dispose of equipment for manufacturing cigarettes if the authorized person has reasonable and probable grounds to believe that the person in possession of the equipment does not hold a registration certificate issued under subsection 7 (1).

Forfeiture of equipment to the Crown

   (5)  Equipment seized under subsection (4) is forfeited to the Crown in right of Ontario to be disposed of as the Minister directs unless, within 30 days following the seizure, the person from whom the equipment was seized, or the owner of the equipment, applies to the Superior Court of Justice to establish the right to possession of the equipment.

Right to possession of equipment

   (6)  For the purposes of an application under subsection (5), the applicant has a right to possession of the equipment only if, at the time the seizure is made, the applicant holds a registration certificate issued under subsection 7 (1).

Disposal pending final determination by court

   (7)  If a final order is not made within 60 days after the filing of an application under subsection (5), the Minister may dispose of the equipment and retain the proceeds, if any, pending the determination of the application.

Order

   (8)  If the court is satisfied on an application under subsection (5) that the applicant held a registration certificate issued under subsection 7 (1) at the time the seizure was made, the court may order that the equipment be returned to the applicant or that the proceeds of sale of the equipment be paid to the applicant.

Forfeiture after dismissal of application

   (9)  On dismissal of an application under subsection (5) and the expiry of the appeal period provided for it, the equipment is forfeited to the Crown in right of Ontario to be disposed of as the Minister directs.

Proceeds of sale

   (10)  If a sale of the equipment is authorized under subsection (5) or (9), or if the proceeds of a sale are retained under subsection (7) and the application is dismissed, the proceeds of the sale remaining after payment of the costs incurred by the Minister in seizing, storing and disposing of the equipment are to be paid into the Consolidated Revenue Fund.

   4.  Subsection 20.2 (3) of the Act is repealed and the following substituted:

Penalty, wholesaler

   (3)  Every wholesaler who is found to have delivered or caused to be delivered tobacco to a particular place owned or occupied by a retail dealer in respect of which a temporary prohibition under section 20 was in effect shall pay a penalty, when assessed for it, equal to the sum of,

  (a)  three times the amount of tax that would be payable under this Act if the tobacco that the wholesaler delivered or caused to be delivered to the particular place during the period the prohibition was in effect had been sold to a consumer; and

  (b)  the amount of,

           (i)  $1,000 if this is the first penalty assessed against the wholesaler under this subsection,

          (ii)  $2,500 if this is the second penalty assessed against the wholesaler under this subsection,

         (iii)  $5,000 if this is the third penalty assessed against the wholesaler under this subsection, or

         (iv)  $10,000 if the wholesaler has been assessed a penalty under this subsection more than three times before.

   5.  Clause 23 (1) (b.1) of the Act is repealed and the following substituted:

(b.1) examine any inventory of cigarettes, any individual packages of cigarettes in any inventory and any equipment for manufacturing cigarettes that may be in the premises or place; and

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

Seizure of untaxed cigars and other tobacco

Definition

   23.1.1  (1)  In this section,

"other tobacco" means tobacco other than cigarettes and cigars.

Seizure of untaxed cigars and other tobacco

   (2)  If, on an inspection under subsection 23 (1), a person authorized by the Minister discovers that a wholesaler or retail dealer is in possession of cigars or other tobacco, and the person has reasonable and probable grounds to believe that the possession is contrary to the provisions of subsection 29.1 (2), the person may, subject to subsection (3), seize, impound, hold and dispose of the cigars or other tobacco.

Application to the court

   (3)  Cigars or other tobacco seized under subsection (2) are forfeited to Her Majesty to be disposed of as the Minister directs unless, within 30 days following the seizure, the person from whom the cigars or other tobacco were seized, or the owner of the cigars or other tobacco, applies to the Superior Court of Justice to establish the right to possession of the cigars or other tobacco.

Right to possession of cigars and other tobacco

   (4)  For the purposes of an application under subsection (3), the applicant has a right to possession of the cigars or other tobacco if, at the time the seizure is made,

  (a)  the applicant was in possession or control of not more than 50 cigars or one kilogram of other tobacco for the purposes of resale;

  (b)  the applicant is permitted under this Act or the regulations to have in his or her possession cigars or other tobacco for which he or she cannot prove that an amount equal to the tax that would be payable under section 2 has been paid; or

   (c)  the applicant has paid an amount equal to the tax payable under section 2 on the cigars or other tobacco to the person from whom the cigars or tobacco were obtained.

Disposal pending final determination by court

   (5)  If a final order is not made within 60 days after the filing of an application under subsection (3), the Minister may dispose of the cigars or other tobacco and retain the proceeds, if any, pending the determination of the application.

Order

   (6)  If the court is satisfied on an application under subsection (3) that the applicant has a right to possession of the cigars or other tobacco, the court may order that the cigars or other tobacco be returned to the applicant or that the proceeds of the sale of the cigars or other tobacco be paid to the applicant.

Forfeiture after dismissal of application

   (7)  On dismissal of an application under subsection (3) and the expiry of the appeal period provided for it, the cigars or other tobacco are forfeited to Her Majesty to be disposed of as the Minister directs.

Proceeds of sale

   (8)  If a sale of cigars or other tobacco is authorized under subsection (3) or (7), or if the proceeds of a sale are retained under subsection (5) and the application is dismissed, the proceeds of the sale remaining after payment of the costs incurred by the Minister in seizing, storing and disposing of the cigars or other tobacco shall be paid into the Consolidated Revenue Fund.

   7.  Subsection 24 (12) of the Act is repealed and the following substituted:

Penalty

   (12)  Every person from whom tobacco is seized under subsection (3) shall pay a penalty, when assessed for it, equal to the sum of,

  (a)  three times the amount of tax that would be payable under section 2 if the seized tobacco had been sold to a consumer liable to pay tax under this Act; and

  (b)  the amount of,

           (i)  $500 if the person has not been previously assessed a penalty under this subsection or under subsection 2 (7.1), 29 (3) or (4), 29.1 (6) or (7) or 34 (2),

          (ii)  $2,500 if the person has previously been assessed a penalty under this subsection or under subsection 2 (7.1), 29 (3) or (4), 29.1 (6) or (7) or 34 (2), but has not been previously assessed more than one penalty in total under this subsection and those subsections,

         (iii)  $5,000 if the person has previously been assessed more than one penalty in total under this subsection or subsection 2 (7.1), 29 (3) or (4), 29.1 (6) or (7) or 34 (2).

   8.  (1)  Subsection 29 (1.1) of the Act is amended by striking out "clause (1) (b)" and substituting "subsection (1)".

   (2)  Subsections 29 (3) and (4) of the Act are repealed and the following substituted:

Penalty

   (3)  Every person who, except as permitted under this Act or the regulations, sells or offers for sale or keeps for sale in Ontario unmarked cigarettes shall pay a penalty, when assessed for it, on all of the unmarked cigarettes sold, offered for sale or kept for sale, equal to the sum of,

  (a)  three times the amount of tax that would be payable under section 2 if the cigarettes had been sold to a consumer liable to pay tax under this Act; and

  (b)  the amount of,

           (i)  $500 if the person has not previously been assessed a penalty under this subsection or subsection (4) or under subsection 2 (7.1), 24 (12), 29.1 (6) or (7) or 34 (2),

          (ii)  $2,500 if the person has previously been assessed a penalty under this subsection or subsection (4) or under subsection 2 (7.1), 24 (12), 29.1 (6) or (7) or 34 (2), but has not been previously assessed more than one penalty in total under this subsection and those subsections,

         (iii)  $5,000 if the person has previously been assessed more than one penalty in total under this subsection or subsection (4) or under subsection 2 (7.1), 24 (12), 29.1 (6) or (7) or 34 (2).

Penalty

   (4)  Every person who, except as permitted under this Act or the regulations, has in the person's possession more than 200 unmarked cigarettes or has in the person's possession or has purchased or received any number of unmarked cigarettes for purposes of sale shall pay a penalty, when assessed for it, equal to the sum of,

  (a)  three times the amount of tax that would be payable under section 2 if the cigarettes had been sold to a consumer liable to pay tax under this Act; and

  (b)  the amount of,

           (i)  $500 if the person has not been previously assessed a penalty under this subsection or subsection (3) or under subsection 2 (7.1), 24 (12), 29.1 (6) or (7) or 34 (2),

          (ii)  $2,500 if the person has previously been assessed a penalty under this subsection or subsection (3) or under subsection 2 (7.1), 24 (12), 29.1 (6) or (7) or 34 (2), but has not been previously assessed more than one penalty in total under this subsection and those subsections,

         (iii)  $5,000 if the person has previously been assessed more than one penalty in total under this subsection or subsection (3) or under subsection 2 (7.1), 24 (12), 29.1 (6) or (7) or 34 (2).

   9.  (1)  Subsection 29.1 (2) of the Act is repealed and the following substituted:

Possession of untaxed cigars and other tobacco

   (2)  No person shall, unless permitted to do so under this Act or the regulations,

  (a)  have in his or her possession more than 50 cigars or more than one kilogram of other tobacco for which the person cannot prove that an amount equal to the tax that would be payable under section 2 has been paid to the person or entity from whom the person obtained the cigars or tobacco; or

  (b)  have in his or her possession for the purposes of resale, or purchase or receive for the purposes of resale, any cigars or other tobacco for which the person cannot prove that an amount equal to the tax that would be payable under section 2 has been paid to the person or entity from whom the cigars or other tobacco were obtained.

Seizure of cigars or other tobacco

   (2.1)  If a person authorized by the Minister has reasonable and probable grounds to believe that a person is in possession of cigars or other tobacco contrary to the provisions of subsection (2), the person may, subject to subsection (2.2), stop and detain the person and may seize, impound, hold and dispose of the cigars and other tobacco.

Application

   (2.2)  Cigars or other tobacco seized under subsection (2.1) are forfeited to Her Majesty to be disposed of as the Minister directs unless, within 30 days following the seizure, the person from whom the cigars or other tobacco were seized, or the owner of the cigars or other tobacco, applies to the Superior Court of Justice to establish a right to possession of the cigars or other tobacco.

Right to possession of cigars or other tobacco

   (2.3)  For the purposes of an application under subsection (2.2), the applicant has a right to possession of the cigars or other tobacco if, at the time the seizure was made,

  (a)  the applicant was in possession or control of not more than 50 cigars or one kilogram of other tobacco;

  (b)  the applicant was permitted under this Act or the regulations to have in his or her possession cigars or other tobacco for which he or she cannot prove the tax that would be payable under section 2 has been paid; or

   (c)  the applicant had paid the tax payable under section 2 on the cigars or other tobacco.

Disposal pending final determination of the court

   (2.4)  If a final order under this section is not made not more than 60 days after the filing of the application under subsection (2.2), the Minister may dispose of the cigars or other tobacco and retain the proceeds, if any, pending the determination of the application.

Order

   (2.5)  If the court is satisfied on an application under subsection (2.2) that the applicant has a right to possession of the cigars or other tobacco, the court may order that the cigars or other tobacco be returned to the applicant or that the proceeds of the sale of the cigars or other tobacco be paid to the applicant.

Forfeiture after dismissal of application

   (2.6)  On dismissal of an application under subsection (2.2) and the expiry of the appeal period provided for it, the cigars or other tobacco are forfeited to Her Majesty to be disposed of as the Minister directs.

Proceeds of sale

   (2.7)  If a sale of cigars or other tobacco is authorized under subsection (2.2) or (2.6), or if the proceeds of a sale are retained under subsection (2.4) and the application is dismissed, the proceeds of the sale remaining after payment of the costs incurred by the Minister in seizing, storing and disposing of the cigars or other tobacco shall be paid into the Consolidated Revenue Fund.

   (2)  Subsections 29.1 (6) and (7) of the Act are repealed and the following substituted:

Penalty, selling

   (6)  Every person who, except as permitted under this Act or the regulations, sells or offers or keeps for sale in Ontario cigars or other tobacco for which the person cannot prove that an amount equal to the tax that would be payable under section 2 has been paid to the person or entity from whom the cigars or other tobacco were obtained shall pay a penalty, when assessed for it, in respect of all the cigars and other tobacco sold or offered or kept for sale, equal to the sum of,

  (a)  three times the amount of tax that would have been payable under section 2 if the cigars or other tobacco had been sold to a consumer liable to pay tax under this Act; and

  (b)  the amount of,

           (i)  $500 if the person has not been previously assessed a penalty under this subsection or subsection (7) or under subsection 2 (7.1), 24 (12), 29 (3) or (4) or 34 (2),

          (ii)  $2,500 if the person has previously been assessed a penalty under this subsection or subsection (7) or under subsection 2 (7.1), 24 (12), 29 (3) or (4) or 34 (2), but has not been previously assessed more than one penalty in total under this subsection and those subsections,

         (iii)  $5,000 if the person has previously been assessed more than one penalty in total under this subsection or subsection (7) or under subsection 2 (7.1), 24 (12), 29 (3) or (4) or 34 (2).

Penalty, possession

   (7)  Every person who, except as permitted under this Act or the regulations,

  (a)  has in his or her possession more than 50 cigars or more than one kilogram of other tobacco for which the person cannot prove that an amount equal to the tax that would be payable under section 2 has been paid to the person or entity from whom the cigars or other tobacco were obtained; or

  (b)  has in his or her possession for the purposes of sale or has received or purchased for the purposes of sale any amount of cigars or other tobacco for which the person cannot prove that an amount equal to the tax that would be payable under section 2 has been paid to the person or entity from whom the cigars or other tobacco were obtained,

shall pay a penalty, when assessed for it, equal to the amount determined under subsection (7.1).

Same

   (7.1)  The amount of the penalty under subsection (7) is the sum of,

  (a)  three times the amount of tax that would have been payable under section 2 if the cigars or other tobacco had been sold to a consumer liable to pay tax under this Act; and

  (b)  the amount of,

           (i)  $500 if the person has not been previously assessed a penalty under subsection (6) or (7) or under subsection 2 (7.1), 24 (12), 29 (3) or (4) or 34 (2),

          (ii)  $2,500 if the person has previously been assessed a penalty under subsection (6) or (7) or under subsection 2 (7.1), 24 (12), 29 (3) or (4) or 34 (2), but has not been previously assessed more than one penalty in total under this subsection and those subsections,

         (iii)  $5,000 if the person has previously been assessed more than one penalty in total under subsection (6) or (7) or under subsection 2 (7.1), 24 (12), 29 (3) or (4) or 34 (2).

   10.  Subsection 34 (2) of the Act is repealed and the following substituted:

Penalty

   (2)  Every holder of a permit to mark or stamp cigarettes and every dealer who possesses cigarettes in a package, carton or case that has previously been used as a marked package, carton or case under this Act or the regulations or has been fraudulently marked shall pay a penalty equal to,

  (a)  if this is the first time a penalty is assessed against the holder of the permit or the dealer under this subsection, the sum of,

           (i)  three times the amount of tax that would be payable under section 2 if the cigarettes had been sold to a consumer liable to pay tax under this Act, and

          (ii)  the amount of,

                 (A)  $500 if the person has not been previously assessed a penalty under this subsection or under subsection 2 (7.1), 24 (12), 29 (3) or (4) or 29.1 (6) or (7),

                 (B)  $2,500 if the person has previously been assessed a penalty under subsection 2 (7.1), 24 (12), 29 (3) or (4) or 29.1 (6) or (7), but has not been previously assessed more than one penalty in total under those subsections,

                 (C)  $5,000 if the person has previously been assessed more than one penalty in total under subsection 2 (7.1), 24 (12), 29 (3) or (4) or 29.1 (6) or (7); or

  (b)  if a penalty has been previously assessed against the holder of the permit or the dealer under this subsection, the sum of,

           (i)  five times the amount of tax that would be payable under section 2 if the cigarettes had been sold to a consumer liable to pay tax under this Act, and

          (ii)  the amount of,

                 (A)  $2,500 if the person has previously been assessed not more than a penalty in total under this subsection or subsection 2 (7.1), 24 (12), 29 (3) or (4) or 29.1 (6) or (7), or

                 (B)  $5,000 if the person has previously been assessed more than one penalty in total under this subsection or subsection 2 (7.1), 24 (12), 29 (3) or (4) or 29.1 (6) or (7).

Commencement

   11.  This Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2008 (No. 2) receives Royal Assent.

EXPLANATORY NOTE

Schedule A
assessment Act

Subsection 40 (3) of the Assessment Act provides that for land in certain property classes, a property owner must request the Municipal Property Assessment Corporation ("MPAC") to reconsider the land's assessment before appealing to the Assessment Review Board.  Subsection 2 (2) of the Act is amended by adding clause (d.7), which allows the Minister of Finance to prescribe land to which this precondition does not apply.

Subsection 3 (1) of the Act is amended by adding paragraph 7.  The new paragraph adds an exemption from taxation for land that is owned, used and occupied by a care home.  To qualify, the operator of the care home must currently operate or previously have operated an approved charitable home for the aged and be a registered charity.

Currently, paragraph 20 of subsection 3 (1) of the Act provides an exemption for minerals in, on or under land with some exceptions.  The exceptions are repealed.

Subsection 3 (1) of the Act is amended by adding paragraph 22.1.  The new paragraph adds an exemption from taxation for a garden suite, as defined under the Planning Act, that is temporarily being used as the personal residence of a person who is at least 65 years of age if the landowner also has his or her personal residence on the land and is a family member of the person residing in the garden suite.

Currently, section 19.1 of the Act provides for adjustments to the current value of land so that eligible increases to the current value are phased in over four years.  The section is amended to require MPAC to revise the phase-in calculation if a change is made to the current value of the land, and to correct arithmetical errors that may be made in calculations under the section for the current and subsequent taxation years.  MPAC must give notice of these changes.

Currently, section 31 of the Act provides that MPAC shall deliver a new notice of assessment any time there has been a change of information on the assessment roll relating to a property.  The section is amended to provide that a notice is not required if the only change relates to the phase-in of an eligible assessment increase under section 19.1 of the Act.

Currently, subsections 32 (1) and (1.1) of the Act provide circumstances in which MPAC may correct the assessment or classification of a property.  Amendments to these subsections clarify that these corrections may also be made in respect of omitted or supplementary assessments that have been made in respect of the property.  Subsections 32 (2), (3) and (4) of the Act are amended to remove a timing restriction on MPAC's ability to implement statutory and regulatory amendments. Subsection 32 (5) of the Act is repealed because it is spent.

Currently, subsection 32 (2) sets out procedures if the classification of land changes as a result of a change in the regulations made under section 7.  The subsection is clarified to include regulations made under the Education Act.

Currently, subsection 39 (1) of the Act sets out the officials to whom MPAC must deliver an assessment roll.  The secretary of the board of a local roads area under the Local Roads Boards Act is added to the list.

Section 39.1 of the Act is amended to clarify the types of matters that a property owner may request MPAC to reconsider under the section.  The section is also amended to clarify that property owners have until the later of March 31 of the taxation year and 90 days after the mailing of the notice of an amended assessment to request MPAC to reconsider the amended assessment.

Subsection 40 (8) of the Act is amended to clarify that property owners appealing an amended assessment have until the later of March 31 of the taxation year and 90 days after the mailing of the notice to bring the appeal.

Subsection 40 (12) of the Act, which requires the Assessment Review Board to give notice of hearings, is repealed.  The Statutory Powers Procedure Act continues to govern the matter of notice.  Currently, subsection 40 (26) of the Act provides that, where the Assessment Review Board has not finally disposed of an appeal, subsequent assessments of the same property are also deemed to have been appealed.  The subsection is amended to clarify that these subsequent assessments include assessments under section 32 of the Act.

Schedule b
Commodity Futures Act

The enactment of subsection 60 (9) of the Commodity Futures Act expressly permits an order or a temporary order to be made in respect of a person or company by the Ontario Securities Commission under subsection 60 (1) or (4) of the Act if, in any jurisdiction, the person or company has been convicted of specified types of offences related to commodity futures contracts or options, has been found by a court to have contravened specified types of commodity futures laws, is subject to an order imposing sanctions, conditions, restrictions or requirements that is made by an authority in any jurisdiction responsible for the regulation of commodities and contracts or has agreed with such an authority to be made subject to sanctions, conditions, restrictions or requirements.

Schedule c
Corporations Tax Act

Section 43.3 of the Corporations Tax Act provides for the Ontario innovation tax credit, which is a refundable tax credit available to qualifying corporations that carry on scientific research and experimental development activities in Ontario.  The amendments to section 43.3 of the Act increase the expenditure limit for the tax credit from $2 million to $3 million and extend the taxable income phase-out range from the existing range of $400,000 to $600,000 to a new range of $400,000 to $700,000.  These amendments apply to taxation years ending after February 25, 2008.

Under the Act, any gain realized on the donation of certain publicly traded securities to a registered charity or other qualified donee is deducted in computing a corporation's adjusted net income for corporate minimum tax purposes.  The amendment to subsection 57.4 (1) of the Act similarly excludes from a corporation's adjusted net income for corporate minimum tax purposes any gain realized by the corporation on the exchange of certain securities for publicly traded securities if the corporation donates the publicly traded securities received on the exchange to a registered charity or other qualified donee after February 25, 2008.

Schedule d
education Act

Section 257.11.1 is added to the Education Act.  Subsection 257.11.1 (1) requires the Minister of Finance to pay a levying board on whose behalf the Minister collects taxes for school purposes the difference between the amount that is levied by the board and the amount that is collected by the Minister.  Subsection 257.11.1 (2) deems a payment made under subsection 257.11.1 (1) to be a tax levied under section 2 of the Provincial Land Tax Act, 2006.

Schedule e
Electricity Act, 1998

Section 81 of the Electricity Act, 1998 requires the Financial Corporation to submit an annual report for each fiscal year to the Minister of Finance within 90 days after the end of the fiscal year.  The enactment of subsection 81 (1.1) of the Act permits the Minister of Finance to provide an extension of time for the Financial Corporation to submit its annual report to a day that is not later than the day the Public Accounts for the fiscal year are submitted to the Lieutenant Governor in Council in accordance with subsection 13 (3) of the Ministry of Treasury and Economics Act.

Schedule f
Executive Council Act

Subsection 2 (1) of the Executive Council Act is re-enacted without the list of portfolios.

Subsection 7 (1) of the Act requires a specified level of attendance by ministers of the Crown at Question Period.  Subsection 7 (2) of the Act lists certain kinds of absence that may not be counted for the purposes of subsection 7 (1) of the Act.  International travel related to trade or economic development is added to the list.

Schedule g
Financial Administration Act

Subsection 9 (1) of the Financial Administration Act currently permits refunds to be paid out of the Consolidated Revenue Fund and charged to the appropriate public account.  Subsection 9 (2) of the Act currently authorizes the Lieutenant Governor in Council to make regulations under any other Act to provide for a refund of fees if that other Act imposes fees but does not contain a legislative mechanism to authorize a refund of the fees.

The re-enactment of subsection 9 (1) of the Act authorizes the payment of interest out of the Consolidated Revenue Fund on refunds authorized under any Act, if the payment of the interest is authorized by an Act.  The re-enactment of subsection 9 (2) of the Act authorizes the refund or partial refund out of the Consolidated Revenue Fund of money that was paid to or collected by the government if the money was erroneously paid or collected or was received by the government for a purpose that is not fulfilled, or if Treasury Board considers it appropriate in the circumstances to make the refund or partial refund.  Refunds and partial refunds are to be made in accordance with any directives made by Treasury Board for the purposes of the section.  New subsection 9 (4) of the Act continues the requirement to charge amounts paid out of the Consolidated Revenue Fund to the appropriate accounts.

New section 9.1 of the Act provides that any regulation made under subsection 9 (2) of the Act as that subsection currently reads remains in force and continues to apply until it is revoked, to the extent it does not conflict with a directive of Treasury Board referred to in subsection 9 (3) of the Act.

Schedule h
Fuel Tax Act

Currently, subsection 2 (7) of the Fuel Tax Act prohibits the use of coloured fuel to propel railway equipment that is part of a public transportation system.  The re-enactment of this subsection removes the prohibition. The re-enactment of clause 2 (1) (d) of the Act provides that any fuel used to propel railway equipment that is part of a public transportation system is taxed at the reduced rate of 4.5 cents per litre.  New subsection 4.11 (2.1) of the Act requires railway operators to be registered under the Act as registered consumers.

The re-enactment of subsection 2 (6) of the Act prohibits the use of coloured fuel in motor vehicles and vessels operated principally for pleasure or recreation.  New clause 2 (3) (b) of the Act imposes tax at the rate applicable in respect of clear fuel if fuel that is not clear fuel is placed in a fuel tank of a motor vehicle or vessel used principally for pleasure or recreation.  Section 5 of the Act currently permits the inspection of a fuel tank of a motor vehicle to determine if it contains coloured fuel.  The re-enactment of subsections 5 (1) and (2) of the Act also permits an inspection to determine if coloured fuel is in a fuel tank of a vessel that is used principally for pleasure or recreation.  New subsection 5 (3.1) of the Act provides that it is an offence to have coloured fuel in a fuel tank of a motor vehicle or vessel used for pleasure or recreation.  Amendments to section 27.1 of the Act provide for penalties for placing coloured fuel in a fuel tank of a motor vehicle or vessel used for pleasure or recreation or using coloured fuel in such a vehicle or vessel.

Currently, section 22.1 of the Act provides that for purposes related to the administration of the Act the Minister shall disclose the names and addresses of certain persons designated or registered for the purposes of the Act.  The amendments to that section add persons who are registered consumers under the Act to the list of persons.

Schedule i
Income Tax Act

The re-enactment of the definition of "adjusted income" in subsection 8 (1) of the Income Tax Act adopts for the purposes of the Ontario property and sales tax credits the definition of that term in the Income Tax Act (Canada).  The other amendments to section 8 increase the income threshold to $24,300 for 2008 in the calculation of the property and sales tax credits for seniors who have a qualifying spouse or qualifying common-law partner.

The re-enactment of paragraph 3 of subsection 10 (1) of the Act is a housekeeping amendment to adopt a recently enacted provision of the Income Tax Act (Canada) relating to the time of remittance of amounts paid on account of tax.

Schedule j
Interim Appropriation for 2009-2010 Act, 2008

The Schedule enacts the Interim Appropriation for 2009-2010 Act, 2008 which authorizes expenditures for the fiscal year ending on March 31, 2010 up to specified maximum amounts.  The expenditures authorized under the Act are to be applied in accordance with the votes and items set out in the estimates and supplementary estimates for the fiscal year ending on March 31, 2010 that are tabled in the Assembly.

Schedule k
LEGAL AID SERVICES ACT, 1998

The Legal Aid Services Act, 1998 is amended by replacing references to Management Board of Cabinet with references to Treasury Board.

Schedule l
Limitations Act, 2002

The Schedule amends the Limitations Act, 2002 by,

     (a) specifying the starting point for counting in relation to demand obligations for the purposes of discoverability and the ultimate limitation period;

     (b) adding a provision respecting the application of the Limitations Act to claims about payments made to the Crown or to another public authority for which it is alleged that there was no valid legal authority; and

     (c) replacing references in the Act to effective or commencement dates with the actual dates.

Schedule m
Local Roads Boards Act

Section 10.0.1 is added to the Local Roads Boards Act.  It requires a board to prepare an annual estimate of the amount required for the purposes of the board.  Currently, this requirement is set out in section 21 of the Act.  A technical amendment specifies when the estimate may be prepared.

Section  21 of the Act is re-enacted and sets out requirements governing the tax rates that may be levied under this Act in respect of classes of real property as defined in the Assessment Act.

Section 29.1 of the Act currently authorizes a board to enter into an agreement with the Minister of Finance authorizing the Minister to collect taxes levied by the board under the Act.  Technical amendments require a board to enter into such an agreement for a taxation year no later than December 1 of the preceding year.  Special provision is made for the 2009 taxation year.  Technical amendments respecting the termination of an agreement are also made.

Section 31 of the Act currently provides that, when a board collects taxes under the Act, the board remits the amount collected to the Minister of Transportation for deposit into the Consolidated Revenue Fund.  The Minister then credits certain amounts to the board.  A new subsection 31 (1.1) of the Act makes provision for amounts to be credited to the board when the taxes are collected for the board by the Minister of Finance.

Currently, section 32 of the Act authorizes the Minister of Transportation to credit a board with an amount calculated at a specified rate in respect of unoccupied Crown land in a local roads area.  An amendment provides a different method for determining the amount.

Currently, section 33 of the Act authorizes the Minister of Transportation to spend money for specified purposes when amounts have been credited to a board.  A new section 33.1 is added to the Act in connection with the collection of taxes by the Minister of Finance for a board.  In specified circumstances, the Minister of Finance is authorized to advance funds to the Minister of Transportation to spend for those specified purposes before amounts are credited to the board for the taxes to be collected.

Schedule n
Northern Services Boards Act

Currently, section 22 of the Northern Services Boards Act requires the Municipal Property Assessment Corporation to provide certain information to every Board by October 15 of each year.  A technical amendment extends that deadline to January 1, 2009 for information respecting the 2009 taxation year.

Currently, subsection 23 (6) of the Act specifies the rate to be levied on farmland and managed forest land in a Board area, and subsection 23 (7) of the Act sets out related regulation-making authority.  Those two subsections are deleted.

Section 23.1 is added to the Act.  It sets out requirements governing the rate or rates that may be levied under this Act in respect of classes of real property as defined in the Assessment Act.  A related technical amendment is made to subsection 23 (4) of the Act.

Section 25.1 is added to the Act.  Under this section, a Board may pass a by-law requesting the Minister of Finance to collect fees imposed by the Board.  The fees are collectable under the Provincial Land Tax Act, 2006.  A related amendment to section 26 of the Act requires the Minister of Finance to collect the fees.

Section 26.1 is added to the Act.  It requires the Minister of Finance to pay certain amounts to a Board on whose behalf the Minister levies rates or collects fees, if there is a difference between the amount that is collectable and the amount that is collected.  It also authorizes the Minister of Finance to make advances to such a Board in specified circumstances.

A technical amendment is made to subsection 43 (1) of the Act regarding exemptions from taxation under Part II of the Act.

Schedule o
Ontario Capital Growth Corporation Act, 2008

The Schedule enacts the Ontario Capital Growth Corporation Act, 2008 which establishes the Ontario Capital Growth Corporation as a corporation without share capital.

The objects of the Corporation are mainly to receive, hold, administer and otherwise deal with the interest of the Government of Ontario in the limited partnership known as the Ontario Venture Capital Fund LP and to carry out the other objects that are prescribed by the regulations made under the Act. The Corporation has the powers of a natural person for carrying out its objects, but cannot establish a subsidiary without the consent of the Lieutenant Governor in Council. Except with respect to dealing with the interest of the Government of Ontario in the limited partnership known as the Ontario Venture Capital Fund LP, the Corporation can only borrow or make investments if a by-law of the Corporation authorizes the activity, the Minister of Finance consents to the by-law and, unless the Minister of Finance agrees otherwise, the Ontario Financing Authority co-ordinates and arranges the activity.

The Corporation and its subsidiaries, if any, are Crown agents unless they declare in writing in an agreement, security or instrument that they are not acting as a Crown agent for the purposes of the agreement, security or instrument.

The Public Service Commission may appoint the employees of the Corporation under Part III of the Public Service of Ontario Act, 2006. The Corporation may engage other persons who are not employees of the Corporation.

Before the beginning of each fiscal year, the Corporation is required to submit its business plan for the fiscal year for approval by the Minister responsible for the administration of the Act. The Corporation is also required to maintain financial records and to make reports.

Schedule p
Ottawa Congress Centre Act

The short title of the Ottawa Congress Centre Act is changed to the Ottawa Convention Centre Corporation Act.  The corporation known as the Ottawa Congress Centre in English and as the Centre des congrès d'Ottawa in French is continued as the Ottawa Convention Centre Corporation in English and Société du Centre des congrès d'Ottawa in French.  With the approval of the Minister responsible for the administration of the Act, the board of directors of the corporation is allowed to change the name of the convention centre facility that the corporation operates in the City of Ottawa.

Schedule q
Provincial Land TAx Act, 2006

Section 6 of the Provincial Land Tax Act, 2006 is amended by adding subsection (1.1).  The new subsection allows the Minister to send an assessed owner more than one bill in respect of the property tax payable under the Act and allows the Minister to prescribe the manner in which the property tax payable on each bill is billed and paid.

Currently, subsection 8 (1) of the Act allows the Minister, upon application, to cancel or refund property tax.  Subsection 8 (1) is amended so that the Minister may only cancel or refund tax levied under this Act or the Education Act.

The re-enactment of subsection 20 (1) of the Act allows the Minister to prescribe how the property tax payable under the Act will be applied in respect of a property when amounts are payable by an assessed owner to one or more bodies under the Act.

Section 24.1 is added to the Act.  It allows the Minister to enter into and amend agreements with municipalities respecting the administration and enforcement of the Act.

Subsection 25 (1) of the Act is amended by adding clauses (k) and (l).  Clause (k) allows the Minister to make regulations regarding the payment of interest on any refund, rebate, deferral or cancellation of property tax that is authorized by the Act and prescribing the rate of interest.  Clause (l) allows the Minister to make regulations prescribing the manner in which the property tax payable is billed and paid for the purposes of the new subsection 6 (1.1).

A technical linguistic change is made to the French version of the Act.

Schedule r
Securities Act

The enactment of subsection 127 (10) of the Securities Act expressly permits an order or a temporary order to be made in respect of a person or company by the Ontario Securities Commission under subsection 127 (1) or (5) of the Act if, in any jurisdiction, the person or company has been convicted of specified types of securities related offences, has been found by a court to have contravened specified types of securities laws, is subject to an order of a securities regulatory authority imposing sanctions, conditions, restrictions or requirements or has agreed with a securities regulatory authority to be made subject to sanctions, conditions, restrictions or requirements.

SCHEDULE s
Social Housing Reform Act, 2000

The amendments to the Social Housing Reform Act, 2000 are intended to implement the government's policy, as announced in the 2007 Budget, to eliminate the equalization of social housing costs among GTA municipalities.

Schedule t
Supplementary interim appropriation act, 2008

The Schedule enacts the Supplementary Interim Appropriation Act, 2008, which authorizes additional expenditures for the fiscal year ending on March 31, 2009 up to specified maximum amounts.  The expenditures authorized under the new Act are in addition to those authorized under the Interim Appropriation Act, 2008.  The expenditures authorized under both the Interim Appropriation Act, 2008 and the Supplementary Interim Appropriation Act, 2008 are to be applied in accordance with the votes and items set out in the estimates and supplementary estimates for the fiscal year ending on March 31, 2009 that are tabled in the Assembly.

Schedule u
Taxation Act, 2007

The re-enactment of subsection 13 (2) of the Taxation Act, 2007 maintains the dividend tax credit for Ontario purposes at 7.7 per cent despite a decrease in the federal dividend tax credit under the Income Tax Act (Canada) (the "Federal Act").

Under the Act, any gain realized on the donation of certain publicly traded securities to a registered charity or other qualified donee is deducted in computing a corporation's adjusted net income for corporate minimum tax purposes.  The amendment to subsection 57 (1) of the Act similarly excludes from a corporation's adjusted net income for corporate minimum tax purposes any gain realized by the corporation on the exchange of certain securities for publicly traded securities if the corporation donates the publicly traded securities received on the exchange to a registered charity or other qualified donee after February 25, 2008.

Section 88 of the Act provides an employer with a co-operative education tax credit in respect of students enrolled in eligible educational institutions who are hired by the employer to work in qualifying work placements.  Subsection 88 (21) of the Act is amended to include Redeemer University College as an eligible educational institution.

Section 96 of the Act provides for the Ontario innovation tax credit, which is a refundable tax credit available to qualifying corporations that carry on scientific research and experimental development activities in Ontario.  The amendments to section 96 of the Act increase the expenditure limit for the tax credit from $2 million to $3 million and extend the taxable income phase-out range from the existing range of $400,000 to $600,000 to a new range of $400,000 to $700,000.  These increases are prorated for taxation years that straddle February 26, 2008.

The re-enactment of the definition of "adjusted income" in subsection 98 (1) of the Act adopts for the purposes of the Ontario property and sales tax credits and the Ontario senior homeowners' property tax grant the definition of that term in the Federal Act.

The amendment to subsection 99 (3) of the Act corrects a mathematical error in the formula for calculating the Ontario property and sales tax credits for individuals who are not seniors.

The re-enactment of subsections 100 (4) and (5) of the Act increases the income threshold to $24,300 in the calculation of the property and sales tax credits for seniors who have a qualifying spouse or qualifying common-law partner and corrects a mathematical error in the formula for calculating the tax credits.  New subsection 100 (6) of the Act provides an adjustment in the amount of the property tax credit available to a senior when the total of the property tax credit and the Ontario senior homeowners' property tax grant for a year exceeds the amount of the property tax for that year.

Section 104.1 of the Act provides for the payment of the Ontario senior homeowners' property tax grant.  The amendments,

     (a) provide that an eligible senior is deemed to have made an overpayment of tax and entitled to a grant equal to the deemed overpayment;

     (b) entitle the estate of a deceased senior to apply for the grant if the senior would otherwise be entitled to the grant but died before applying;

     (c) allow the estate of a deceased senior to retain a grant if the senior applied for the grant before his or her death;

     (d) provide that the grant is not available for any year in which the senior was confined in a prison or similar institution for more than 179 days;

     (e) prohibit an eligible senior from applying for the grant at a time when he or she is confined to a prison or similar institution;

     (f)  provide that no interest is payable in respect of the grant; and

     (g) permit the Minister of Finance to prescribe types of designated principal residences that are not owned by eligible seniors.

The re-enactment of subsection 137 (1) of the Act is a housekeeping amendment to adopt a recently enacted provision of the Federal Act relating to the time of remittance of amounts paid on account of tax.

Schedule v
amendments to various acts consequential to the enactment of the taxation Act, 2007

The Taxation Act, 2007 generally replaces the Income Tax Act and the Corporations Tax Act for taxation years ending after 2008.  Consequential amendments are made to the Business Corporations Act, the Community Small Business Investment Funds Act, the Electricity Act, 1998, the Limitations Act, 2002, the Mining Tax Act, the Municipal Extra-Territorial Tax Act, the Ontario Disability Support Program Act, 1997, the Ontario Guaranteed Annual Income Act, the Ontario Works Act, 1997, the Proceedings Against the Crown Act and the Social Housing Reform Act, 2000 to update statutory cross-references.

schedule w
tobacco tax act

Subsection 2 (1.8) of the Tobacco Tax Act is amended to require a wholesaler who is a retail dealer of cigars to calculate the taxable price of cigars in the same manner as a retail dealer who is an importer or manufacturer of cigars.

Subsection 2 (7.1) of the Act currently permits the assessment of a penalty against a person for knowingly failing to pay tax.  The re-enactment of the subsection introduces a minimum amount to be factored into the calculation of the penalty. The minimum amount is based on the number of previous penalties assessed against the person under this subsection or certain other provisions of the Act.

Subsection 5 (11.1) of the Act currently permits the assessment of a penalty against a person who operates as an importer into Ontario of tobacco in bulk without holding a registration certificate required under the Act.  The re-enactment of the subsection introduces a minimum amount to be factored into the calculation of the penalty.  The minimum amount is based on the number of previous penalties assessed against the person under this subsection.

Section 7.0.1 is added to the Act.  It deems any person who imports into Ontario or possesses in Ontario equipment for manufacturing cigarettes to be a manufacturer for the purposes of the registration requirements in section 7 of the Act.  The new section includes offence and penalty provisions related to importing or possessing equipment for manufacturing cigarettes without holding a manufacturer's registration certificate issued under section 7 of the Act. The new section allows for the seizure and forfeiture of equipment for manufacturing cigarettes for failure to obtain the required registration certificate.  Section 23 of the Act is amended to permit the examination during the course of an audit and inspection of any cigarette manufacturing equipment found on the premises that is the subject of the inspection.

Subsection 20.2 (3) of the Act currently permits the assessment of a penalty against a wholesaler who has delivered tobacco to a retail dealer who is temporarily prohibited from selling tobacco under section 20 of the Act.  The re-enactment of the subsection introduces a minimum amount to be factored into the calculation of the penalty.  The minimum amount is based on the number of previous penalties assessed against the person under this subsection.

Section 23.1.1 is added to the Act. If it is discovered during an inspection that a wholesaler or retail dealer is in possession of cigars or other tobacco in contravention of subsection 29.1 (2) of the Act, the new section allows the cigars or other tobacco to be seized and forfeited.

Subsection 24 (12) of the Act currently permits the assessment of a penalty when tobacco is seized from a person under subsection 24 (3) of the Act.  The re-enactment of the subsection introduces a minimum amount to be factored into the calculation of the penalty.  The minimum amount is based on the number of previous penalties assessed against the person under this subsection or certain other provisions of the Act.

The amendment to subsection 29 (1.1) of the Act allows for the seizure of unmarked cigarettes if there are reasonable and probable grounds to believe that a person is in possession of more than 200 unmarked cigarettes when the person is not permitted under the Act to be in possession of unmarked cigarettes.

Subsections 29 (3) and (4) of the Act currently permit the assessment of a penalty against a person who sells unmarked cigarettes or has more than 200 unmarked cigarettes in his or her possession, unless permitted under the Act.  The re-enactment of the subsections introduces a minimum amount to be factored into the calculation of the penalty.  The minimum amount is based on the number of previous penalties assessed against the person under either subsection or certain other provisions of the Act.

Currently, subsection 29.1 (2) of the Act prohibits possession of more than 50 cigars or one kilogram of other tobacco for which a person cannot prove that an amount equal to the tax payable under section 2 of the Act has been paid.  The re-enactment of the subsection also prohibits possession by a person for the purposes of sale of any cigars or other tobacco for which the person cannot prove that an amount equal to the tax payable under section 2 of the Act has been paid.  Subsections 29.1 (2.1) to (2.7) are added to the Act, allowing for the seizure and forfeiture of cigars and other tobacco in specified circumstances if subsection 29.1 (2) of the Act is contravened.

Subsection 29.1 (6) of the Act currently permits the assessment of a penalty against a person for selling or keeping for the purpose of sale cigars or other tobacco for which the person cannot prove that an amount equal to the tax that would be payable under section 2 of the Act has been paid.  The re-enactment of the subsection introduces a minimum amount to be factored into the calculation of the penalty.  The minimum amount is based on the number of previous penalties assessed against the person under this subsection or certain other provisions of the Act.

Currently, subsection 29.1 (7) of the Act permits the assessment of a penalty against a person for possessing more than 50 cigars or more than one kilogram of other tobacco for which the person cannot prove that an amount equal to the tax that would be payable under section 2 of the Act has been paid.  The re-enactment of the subsection and new subsection 29.1 (7.1) of the Act introduces a minimum amount to be factored into the calculation of the penalty.  The minimum amount is based on the number of previous penalties assessed against the person under subsection 29.1 (7) or certain other provisions of the Act.

Subsection 34 (2) of the Act currently permits the assessment of a penalty against a person for possessing cigarettes in a package, carton or case that has either previously been used as a marked package, carton or case or has been fraudulently marked.  The re-enactment of the subsection introduces a minimum amount to be factored into the calculation of the penalty.  The minimum amount is based on the number of previous penalties assessed against the person under this subsection or certain other provisions of the Act.