Bill 218 2010

An Act to implement 2009 Budget measures and to enact, amend or repeal various Acts

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 at 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 Alcohol and Gaming Regulation and Public Protection Act, 1996 Architects Act Commodity Futures Act Community Small Business Investment Funds Act Condominium Act, 1998 Co-operative Corporations Act Corporations Tax Act Credit Unions and Caisses Populaires Act, 1994 Education Act Financial Administration Act Interim Appropriation for 2010-2011 Act, 2009 Management Board of Cabinet Act Ministry of Revenue Act Ontario Capital Growth Corporation Act, 2008 Ontario Loan Act, 2009 (No. 2) Proceedings Against the Crown Act Professional Engineers Act Retail Sales Tax Act Securities Act Succession Duty Legislation Repeal Act, 2009 Taxation Act, 2007 Teachers' Pension Act Toronto Futures Exchange 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 Ontario Tax Plan for More Jobs and Growth Act, 2009.

Schedule A
Alcohol and Gaming Regulation and Public Protection Act, 1996

   1.  (1)  Section 1 of the Alcohol and Gaming Regulation and Public Protection Act, 1996 is amended by striking out the portion before the definition of "chair" and substituting the following:

Part I
Alcohol and Gaming Commission of Ontario

Definitions

   1.  In this Part,

.     .     .     .     .

   (2)  The definition of "Minister" in section 1 of the Act is repealed and the following substituted:

"Minister" means the minister responsible for the admin­istration of this Part; ("ministre")

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  (1)  Subsection 8 (1) of the Act is repealed and the following substituted:

Funding

   (1)  Money required for the purposes of this Part shall be paid out of the money appropriated for those purposes by the Legislature.

   (2)  Subsection 8 (2) of the Act is amended by striking out "the Management Board of Cabinet" and substituting "Treasury Board".

   3.  Subsection 12 (1) of the Act is amended by striking out "this Act" in the portion before clause (a) and substituting "this Part".

   4.  Section 14 of the Act is amended by striking out "this Act" and substituting "this Part".

   5.  Section 15 of the Act is amended by striking out "this Act" and substituting "this Part".

   6.  Clause 16 (c) of the Act is amended by striking out "this Act" and substituting "this Part".

   7.  Section 17 of the Act is repealed and the following substituted:

Part II
Beer and Wine TAx

Division A - Interpretation and Obligation to Pay Tax

Definitions

   17.  (1)  In this Part,

"agency store" means a government store established under the Agency Store Program by the Board under its authority described in clause 3 (1) (d) of the Liquor Control Act; ("magasin-agence")

"annual adjustment date" means the day prescribed by the Minister for the purposes of section 26; ("date de rajustement annuel")

"authorized beer manufacturer" means a beer manufacturer licensed under the Liquor Licence Act to sell beer to the Board and includes a manufacturer that has been authorized under the Liquor Control Act to sell its beer in stores that it owns and operates; ("fabricant de bière autorisé")

"beer" means a beverage that is beer for the purposes of the Liquor Licence Act, but does not include a beverage purporting to be beer that contains alcohol obtained by a means other than the fermentation of an infusion or decoction of barley, malt and hops or similar products if the alcohol so obtained increases the total alcohol content of the beverage by more than 0.5 per cent by volume; ("bière")

"beer manufacturer" means,

  (a)  a person who makes beer in Ontario for sale in Ontario, other than a holder of a licence with a brew pub endorsement,

  (b)  a person in Ontario who sells beer in Ontario that is made in Ontario under contract by a person described in clause (a), or

   (c)  a person who makes beer in a province or territory of Canada other than Ontario and who, for the purpose of selling the beer to purchasers in Ontario, ships the beer to a facility in Ontario,

           (i)  at which the person or a wholly-owned subsidiary of the person makes beer at an annual production rate of not less than 2,500 hectolitres of beer, and

          (ii)  at which the annual production capacity is not less than 10,000 hectolitres of beer; ("fabricant de bière")

"beer vendor" means,

  (a)  an authorized beer manufacturer,

  (b)  Brewers' Retail Inc.,

   (c)  the operator of an agency store, or

  (d)  a licensee; ("vendeur de bière")

"Board" means the Liquor Control Board of Ontario; ("Régie")

"brew pub" means premises for which the licensee holds a licence with a brew pub endorsement; ("bistrot-brasserie")

"Commission" means the Alcohol and Gaming Commission of Ontario established under section 2; ("Commission")

"draft beer" means,

  (a)  beer made by a beer manufacturer other than non-draft beer, or

  (b)  beer made at a brew pub; ("bière pression")

"licence" means a liquor sales licence issued under the Liquor Licence Act; ("permis")

"licensee" means a person who holds a licence or permit issued under the Liquor Licence Act; ("titulaire de permis")

"Minister" means the Minister of Revenue or such other member of the Executive Council as may be designated under the Executive Council Act to administer this Part; ("ministre")

"non-draft beer" means beer made by a beer manufacturer for sale in containers each of which has a capacity of less than 18 litres; ("bière non pression")

"non-refillable container" means a container that the manufacturer of a beverage or other person who initially fills the container with the beverage does not intend to refill; ("contenant à remplissage unique")

"Ontario wine" means wine that is Ontario wine for the purposes of the Liquor Licence Act; ("vin de l'Ontario")

"Ontario wine cooler" means Ontario wine or a beverage containing Ontario wine that contains not more than 7 per cent alcohol by volume; ("vin panaché de l'Ontario")

"purchaser" means a person, including the Crown in right of Ontario, who purchases or receives delivery of beer, wine or a wine cooler in Ontario,

  (a)  for use or consumption by the person or by someone else at the person's expense, or

  (b)  on behalf of or as agent for a principal who desires to acquire the beer, wine or wine cooler for use or consumption by the principal or by someone else at the principal's expense; ("acheteur")

"wine" means a beverage that is wine for the purposes of the Liquor Licence Act; ("vin")

"wine cooler" means wine or a beverage containing wine that contains not more than 7 per cent alcohol by volume; ("vin panaché")

"winery" means a person licensed under the Liquor Licence Act to sell wine or wine coolers to the Board and includes a manufacturer that is authorized under the Liquor Control Act to sell its wine and wine coolers in stores that it owns and operates; ("établissement vinicole") 

"winery retail store" means a store in Ontario owned and operated by a winery at which a winery is authorized under clause 3 (1) (e) of the Liquor Control Act to sell wine and wine coolers to purchasers. ("magasin de détail d'établissement vinicole") 

Persons deemed to be purchasers

   (2)  The following persons are deemed to be purchasers in the following circumstances, except as may otherwise be provided by the regulations:

    1.  A beer manufacturer or licensee of a brew pub that distributes beer in Ontario without charge, but only with respect to the beer distributed without charge.

    2.  A beer vendor that purchases beer in Ontario that is not sold to another person, but only with respect to the beer that is purchased and not sold.

    3.  A winery that distributes wine in Ontario without charge, but only with respect to the wine distributed without charge.

    4.  A winery that purchases wine in Ontario that is not sold to another person, but only with respect to the wine that is purchased and not sold.

When purchaser is not subject to tax

   (3)  A purchaser is not subject to tax under this Act in respect of the purchase of beer, wine or a wine cooler,

  (a)  if the purchase is from the Board or from a person who previously purchased the beer, wine or wine cooler from the Board;

  (b)  if the purchase is from a duty-free store within the meaning of subsection 2 (1) of the Customs Act (Canada);

   (c)  if the purchase is of beer or wine made by the purchaser at a location that is a ferment on premises facility for the purposes of the Liquor Licence Act;

  (d)  if the purchaser is an Indian and the purchase of the beer, wine or wine cooler,

           (i)  is made on a reserve,

          (ii)  is from a beer vendor, winery retail store or licensee located on the reserve, and

         (iii)  is for the exclusive use of an Indian;

  (e)  if the purchaser is a person serving in or employed by a diplomatic or consular mission, high commission or trade commission, as authorized by Foreign Affairs and International Trade Canada, or his or her spouse or a family member,

           (i)  if that person is not a Canadian citizen or "permanent resident" of Canada as defined in the Immigration and Refugee Protection Act (Canada), and

          (ii)  if that person is assigned to duty from the state he or she represents and is not engaged locally by the mission or commission; or

    (f)  if the purchase is of wine sold by the glass pursuant to a manufacturer's limited liquor sales licence authorized by the regulations made under the Li­quor Licence Act.

Interpretation, cl. (3) (d)

   (4)  For the purposes of clause (3) (d),

"Indian" has the meaning assigned by subsection 2 (1) of the Indian Act (Canada); ("Indien")

"reserve" means a reserve within the meaning of the Indian Act (Canada) or an Indian settlement located on Crown land, the Indian inhabitants of which are treated by the Government of Canada in the same manner as Indians residing on a reserve. ("réserve")

Affiliates

   (5)  For the purposes of this Act, a corporation is an affiliate of another corporation if one of them is the subsidiary of the other, if both are subsidiaries of a third corporation or if each of them is controlled by the same person or persons.

Rules, re affiliates

   (6)  The following rules apply for the purposes of determining if corporations are affiliates for the purposes of this Act:

    1.  A corporation is a subsidiary of a particular corporation if,

            i.  it is controlled,

                  A.  by the particular corporation,

                  B.  by the particular corporation and one or more other corporations each of which is controlled by the particular corporation, or

                  C.  by two or more corporations each of which is controlled by the particular corporation, or

           ii.  it is a subsidiary of a corporation that is the particular corporation's subsidiary under subparagraph i.

    2.  A particular corporation is controlled by another person or corporation or by two or more corporations if,

            i.  voting securities of the particular corporation carrying more than 50 per cent of the votes for the election of directors are held, otherwise than by way of security only, by or for the benefit of the other person or corporation or by or for the benefit of the other corporations, and

           ii.  the votes carried by the voting securities described in subparagraph i are entitled, if exercised, to elect a majority of the board of directors of the particular corporation.

    3.  For the purposes of paragraph 2,

            i.  a person is deemed to own beneficially securities that are beneficially owned by a corporation controlled by the person or by an affiliate of that corporation, and

           ii.  a corporation is deemed to own beneficially securities that are beneficially owned by its affiliates.

    4.  Unless the regulations provide otherwise, references in paragraphs 2 and 3 to securities are references to securities within the meaning of the Securities Act.

Purchaser subject to tax

   18.  Every purchaser who purchases beer, wine or a wine cooler in Ontario shall pay taxes in respect of the purchase at the time of the purchase to the Crown in right of Ontario in accordance with this Part, unless otherwise provided in this Part or the regulations.

No exemption under another statute unless this Act named

   19.  No person who is subject to tax under this Part is exempt from any tax payable under this Part by reason of an exemption granted to the person or to or in respect of the personal property of the person by or under another Act, unless the provision of the other Act expressly states that the exemption is from tax under this Act.

Division B - Calculation of Tax

Application

   20.  (1)  This Division applies to purchasers in respect of purchases of beer, wine and wine coolers on and after July 1, 2010, but if a later day is prescribed under subsection (2), this Division applies to purchasers only in respect of purchases of beer, wine and wine coolers on and after that later day.

Exception

   (2)  The Lieutenant Governor in Council may make regulations prescribing a day that is after July 1, 2010 as the first day this Division applies to purchasers in respect of purchases of beer, wine and wine coolers.

Same

   (3)  A regulation made under subsection (2) may be made before, on or after July 1, 2010, or any day previously prescribed under subsection (2), and may provide that the regulation is deemed to have come into force on a day before it is filed and to apply to a period before it is filed.

beer

Basic tax, beer made by beer manufacturer

   21.  (1)  A purchaser who purchases beer manufactured by a beer manufacturer shall pay a basic tax in respect of the purchase, calculated at the basic tax rate.

Basic tax rate

   (2)  The basic tax rate for the purposes of subsection (1) in respect of a purchase before the first annual adjustment date is,

  (a)  54.75 cents per litre if the beer is draft beer; or

  (b)  69.75 cents per litre if the beer is non-draft beer.

Same

   (3)  The basic tax rate for the purposes of subsection (1) in respect of a purchase on or after the first annual adjustment date is the rate determined under section 26.

Exception, beer manufactured by microbrewer

   22.  (1)  Despite section 21, the basic tax rate in respect of the purchase of beer manufactured by a beer manufacturer in Ontario that is a microbrewer for the sales year in which the beer is sold is the following, if the purchase is made before the first annual adjustment date:

    1.  18.26 cents per litre if the beer is draft beer.

    2.  19.76 cents per litre if the beer is non-draft beer.

Same

   (2)  If the purchase of beer described in subsection (1) is on or after the first annual adjustment date, the basic tax rate in respect of the purchase is the rate determined under section 26.

Microbrewers

   (3)  For the purposes of this section, a beer manufacturer is a microbrewer for a sales year if,

  (a)  its worldwide production of beer in the previous production year was not more than 50,000 hectolitres or, if this is the first production year in which it manufactures beer, its worldwide production of beer for the production year is expected to be not more than 50,000 hectolitres; and

  (b)  it has not entered into any agreement or other arrangement pursuant to which any beer manufacturer that is not a microbrewer manufactures beer for it.

Worldwide production of beer

   (4)  The following shall be included in determining the amount of a microbrewer's worldwide production of beer for a particular production year for the purposes of this section:

    1.  All beer manufactured during the production year by the microbrewer, whether the beer is manufactured for sale on the microbrewer's account or under contract for another beer manufacturer.

    2.  All beer manufactured during the production year by an affiliate of the microbrewer.

    3.  All beer manufactured during the production year by another microbrewer under contract for the microbrewer.

Definitions

   (5)  In this section,

"production year" means a 12-month period commencing April 1; ("année de production")

"sales year" means a 12-month period commencing July 1. ("année de ventes")

List of microbrewers

   (6)  The Minister shall compile annually and make available to the public for each sales year a list containing the names of beer manufacturers that are microbrewers for the sales year and the names of the brands of beer they manufacture.

Volume tax

   23.  A purchaser of draft or non-draft beer manufactured by a beer manufacturer shall pay a volume tax in respect of the purchase at the volume tax rate of 17.6 cents per litre of beer.

Environmental tax

   24.  A purchaser of non-draft beer or draft beer manufactured by a beer manufacturer shall pay an environmental tax of 8.93 cents for each non-refillable container in which the beer is purchased.

Beer made at brew pub

   25.  (1)  A purchaser of draft beer that was made at a brew pub in Ontario by the holder of the licence with a brew pub endorsement for that brew pub shall pay a basic tax in respect of the purchase if the beer is purchased at the brew pub or at a secondary location related to the brew pub.

Basic tax rate

   (2)  The basic tax rate for the purposes of subsection (1) is,

  (a)  20.90 cents per litre if the purchase is before the first annual adjustment date; or

  (b)  the rate determined under section 26 if the purchase is on or after the first annual adjustment date.

Secondary location related to brew pub

   (3)  A place is a secondary location related to a brew pub for the purposes of this Part if the following conditions are satisfied:

    1.  Draft beer made at the brew pub is sold to a purchaser at the place.

    2.  The place is not part of the brew pub.

    3.  There is a valid licence for the place or the sale of the draft beer at that place is made in accordance with a caterer's endorsement attached to the licence for the brew pub.

    4.  If a separate licence for the place is in effect, the holder of the licence for the brew pub has a direct or indirect ownership interest of at least 51 per cent in the business that sells beer at the place.

Annual adjustment to rate of basic tax

   26.  (1)  The rate of basic tax payable by a purchaser under this Part in respect of the purchase of beer shall be adjusted annually in accordance with this section as of each annual adjustment date.

Calculation of basic tax rate

   (2)  Each basic tax rate, expressed in cents per litre, that is in effect for the period commencing on an annual adjustment date and ending on the day before the next annual adjustment date is calculated using the formula,

A + [A × (B/C – 1)]

in which,

  "A"  is the amount of basic tax per litre of beer that would be payable under this Part if the purchase had been on the day before the annual adjustment date,

  "B"  is the Consumer Price Index for the 12-month period ending the previous November 30, and

  "C"  is the Consumer Price Index for the 12-month period ending November 30 of the year ending before the start of the 12-month period described in the definition of "B".

Same

   (3)  If the basic tax rate for the period ending immediately before an annual adjustment date was determined under this section and was rounded to the nearest one-hundredth of a cent under subsection (4), the amount of basic tax per litre referred to in the definition of "A" in subsection (2) is the amount that would have been determined under this section without rounding.

Rounding

   (4)  If the tax rate expressed in cents per litre that is determined under subsection (2) has three or more decimal places, it is to be rounded to the nearest one-hundredth of a cent or, if the amount is equidistant between two consecutive hundredths of a cent, to the higher hundredth of a cent.

Consumer Price Index

   (5)  In this section, the Consumer Price Index for a 12-month period is the result arrived at by,

  (a)  determining the sum of the Consumer Price Index for Ontario as published by Statistics Canada under the authority of the Statistics Act (Canada) for each month in that period;

  (b)  dividing the sum obtained under clause (a) by 12; and

   (c)  rounding the result obtained under clause (b) to the nearest one-thousandth or, if the result obtained is equidistant between two consecutive thousandths, to the higher thousandth.

wine and wine coolers

Basic tax

Ontario wine or Ontario wine cooler

   27.  (1)  A purchaser who purchases from a winery retail store wine that is Ontario wine or a wine cooler that is an Ontario wine cooler shall pay a basic tax in respect of the purchase at the basic tax rate of 6.1 per cent of the retail price of the wine or wine cooler.

Other wine or wine cooler

   (2)  A purchaser who purchases from a winery retail store wine that is not Ontario wine or a wine cooler that is not an Ontario wine cooler shall pay a basic tax in respect of the purchase at the basic tax rate of 16.1 per cent of the retail price of the wine or wine cooler.

Retail price of wine, etc.

   (3)  The retail price of wine or a wine cooler sold at a winery retail store to a purchaser is the amount fixed by the Board for the wine or wine cooler under the authority of clause 3 (1) (i) of the Liquor Control Act less the sum of, 

  (a)  all taxes imposed under this Act in respect of the purchase of the wine or wine cooler;

  (b)  all taxes imposed under Part IX of the Excise Tax Act (Canada) in respect of the purchase of the wine or wine cooler; and

   (c)  the amount of any deposit on the container containing the wine or wine cooler that is required to be collected or remitted under the Ontario deposit return program referred to in the regulations made under the Liquor Control Act.

Samples

   (4)  If a winery sells a sample of wine or a wine cooler to a purchaser and the amount of tax paid by the purchaser under this Part in respect of the sample is less than the amount of tax, based on the retail price of the wine or wine cooler, that is reasonably allocable by volume to the sample, the winery, as a purchaser, shall pay tax under this Act in an amount equal to the difference. 

Volume tax

   28.  A purchaser who purchases wine or a wine cooler from a winery retail store shall pay a volume tax in respect of the purchase at the volume tax rate of,

  (a)  29 cents per litre, in the case of wine; or

  (b)  28 cents per litre, in the case of a wine cooler.

Environmental tax

   29.  A purchaser who purchases wine or a wine cooler from a winery retail store shall pay an environmental tax of 8.93 cents for each non-refillable container in which the wine or wine cooler is purchased.

Division C - Tax Collection and Remittance

beer

Tax collection and remittance

Collection by beer vendor

   30.  (1)  Every beer vendor that, on or after the first day Division B applies, sells or delivers beer to a purchaser in Ontario shall, as agent of the Minister, collect at the time of the sale or delivery all taxes imposed under this Part on a purchaser in respect of the purchase of the beer.

Remittance by beer vendor

   (2)  Every beer vendor that, on or after the day referred to in subsection (1), purchases or receives delivery of beer from Brewers Retail Inc. or an authorized beer manufacturer shall pay to Brewers Retail Inc. or the authorized beer manufacturer an amount on account of all taxes imposed under this Part on a purchaser in respect of the purchase of the beer.

Collection by Brewers Retail Inc.

   (3)  Brewers Retail Inc. shall, on the sale or delivery of beer to a licensee or agency store in Ontario on or after the day referred to in subsection (1), collect from the licensee or agency store at the time of the sale or delivery, as agent of the Minister, an amount on account of all taxes imposed under this Part on a purchaser in respect of the purchase of the beer.

Remittance by Brewers Retail Inc.

   (4)  Brewers Retail Inc. shall pay amounts collected under subsection (3) to the authorized manufacturers from whom it purchased beer, allocating the amounts collected among the authorized manufacturers based on its purchases of beer from each of them.

Collection by authorized beer manufacturer

   (5)  Every authorized beer manufacturer that, on or after the day referred to in subsection (1), sells or delivers beer to Brewers Retail Inc., an agency store or a licensee in Ontario shall, as agent of the Minister, collect from Brewers Retail Inc., the agency store or the licensee at the time of the sale or delivery an amount on account of all taxes imposed under this Part on a purchaser in respect of the purchase of the beer.

Remittance by authorized beer manufacturer

   (6)  Every authorized beer manufacturer that collects amounts on account of taxes as required under this section shall remit all amounts collected to the Minister in accordance with the regulations.

Remittance by operator of secondary location

   (7)  The operator of every place that is a secondary location related to a brew pub shall pay to the licensee of the brew pub, in accordance with the regulations and at the time of purchasing or receiving delivery of draft beer made at the brew pub, an amount on account of all taxes imposed under Division B on a purchaser in respect of the purchase of the draft beer.

Collection by licensee of brew pub

   (8)  Every licensee of a brew pub shall, on the sale or delivery of draft beer made at the brew pub to the operator of a place that is a secondary location related to the brew pub, collect at the time of the sale or delivery, as agent of the Minister, from the operator of the secondary location an amount on account of all taxes imposed under Division B on a purchaser in respect of the purchase of the draft beer.

Remittance by licensee of brew pub

   (9)  Every licensee of a brew pub shall remit to the Minister in accordance with the regulations all taxes collected under subsection (1) at the brew pub from purchasers of draft beer made at the brew pub and all amounts collected as required under subsection (8).

wine and wine coolers

Method of tax collection, wine and wine coolers

   31.  (1)  Every winery that, on or after the first day Division B applies, sells or delivers wine or a wine cooler to a person at a winery retail store shall, as agent of the Minister, collect at the time of the sale or delivery all taxes imposed under Division B on a purchaser in respect of the purchase of the wine or wine cooler.

Tax remittance

   (2)  Every winery that collects taxes as required under subsection (1) shall remit the taxes to the Minister in accordance with the regulations.

Tax remittance through affiliate

   (3)  Despite subsection (2), a winery that is a corporation may remit the taxes to a corporation that is an affiliate of the winery, and the affiliate shall collect the taxes, as agent for the Minister, and shall remit the taxes to the Minister in accordance with the regulations.

Division D - Administration

Definition

   32.  In this Division,

"collector" means a beer vendor, a winery or, if it remits taxes to the Minister, an affiliate of a winery.

Tax held in trust

Definitions

   33.  (1)  In this section,

"secured creditor" means a person who has a security interest in the property of another person or who acts for or on behalf of that person with respect to the security interest, and includes a trustee appointed under a trust deed relating to a security interest, a receiver or receiver-manager appointed by a secured creditor or by a court on the application of a secured creditor and any other person performing a similar function; ("créancier garanti")

"security interest" means any interest in property that secures payment or performance of an obligation, and includes an interest created by or arising out of a debenture, mortgage, lien, pledge, charge, deemed or actual trust, assignment or encumbrance of any kind whenever arising, created or deemed to arise or otherwise provided for, but does not include a security interest prescribed by the Minister as one to which this section does not apply. ("sûreté")

Deemed trust

   (2)  Every amount collected or collectable by a collector under Division C as or on account of tax payable under this Part is deemed, despite any security interest in the amount collected or collectable, to be held in trust for the Crown in right of Ontario and is deemed to be held separate and apart from the property of the collector and from property held by any secured creditor that but for the security interest would be the property of the collector, and shall be paid over by the collector in accordance with Division C and the regulations.

Extension of trust

   (3)  Despite any provision of this or any other Act, if at any time an amount deemed by subsection (2) to be held in trust is not paid as required under Division C or the regulations by the collector, property of the collector and property held by any secured creditor that but for a security interest would be property of the collector, equal in value to the amount deemed to be held in trust is deemed,

  (a)  to be held, from the time the amount was collected or became collectable by the collector, separate and apart from the property of the collector, in trust for the Crown in right of Ontario, whether or not the property is subject to a security interest; and

  (b)  to form no part of the estate or property of the collector from the time the amount was collected or became collectable, whether or not the property has in fact been kept separate and apart from the estate or property of the collector and whether or not the property is subject to a security interest.

Same

   (4)  The property described in subsection (2) is deemed to be beneficially owned by the Crown in right of Ontario despite any security interest in the property or in the proceeds of the property, and the proceeds of the property shall be paid to the Minister in priority to all security interests in the property.

Minister's certificate

   (5)  Every person who, as assignee, liquidator, administrator, receiver, receiver-manager, secured or unsecured creditor or agent of the creditor, trustee or other like person, other than a trustee appointed under the Bankruptcy and Insolvency Act (Canada), takes control or possession of the property of a collector shall, before distributing the property or the proceeds from the realization of the property under that person's control, obtain from the Minister a certificate that the amount deemed by subsection (2) to be held in trust, including any interest and penalties payable by the collector, has been paid or that security acceptable to the Minister has been given.

No distribution without Minister's certificate

   (6)  Any person described in subsection (5) who distributes any property described in that subsection or the proceeds of the realization of the property without having obtained the certificate required by that subsection is personally liable to the Crown in right of Ontario for an amount equal to the amount deemed by subsection (2) to be held in trust, including any interest and penalties payable under this Part by the collector.

Notice to be given

   (7)  The person described in subsection (5) shall, within 30 days after the day on which the person assumed possession or control of the property, give written notice of the assumption of possession or control of the property to the Minister.

Minister to advise of indebtedness

   (8)  As soon as practicable after receiving a notice given under subsection (7), the Minister shall notify the person described in subsection (5) of the amount deemed by subsection (2) to be held in trust, including any interest and penalties related to that amount.

Assessment re amounts held in trust

   (9)  The Minister may assess the amount that a person is liable for under subsection (6), and the assessed amount is deemed to be tax collectable or collected, as the case may be, by the person.

Application

   (10)  This section applies in respect of any amount as or on account of tax collected or collectable by a collector under Division C whether the security interest was acquired before or after this section comes into force.

Security

   34.  (1)  The Minister may require a collector to deposit with the Minister security in a form and of a kind acceptable to the Minister.

Minister may apply security

   (2)  If a collector that has deposited security with the Minister under subsection (1) fails to collect or remit an amount as or on account of tax as required under this Part,

  (a)  the Minister may apply the security in whole or in part to the amount that should have been collected or remitted; and

  (b)  if the Minister takes the action described in clause (a), the Minister shall forthwith give written notice of the action to the collector by registered mail or personal service.

Assignment of book debts

   35.  If a collector makes an assignment of its book debts, whether by way of specific or general assignment, or in any other manner disposes of its present or future right to collect its book debts, the assignment does not include the portion of the book debts that the collector, as agent for the Minister, charged the person to whom the collector sold the beer, wine or wine cooler as or on account of tax, and any such assignee or any other person who collects the book debts is deemed to be a collector under this Division and shall collect, remit and account under this Part and the regulations for the unassigned portion.

Requirement to submit returns

   36.  (1)  Every collector required under Division C to collect tax or an amount on account of tax shall, if required to do so by the regulations, deliver a return to the Minister in accordance with the regulations.

Extended time for submitting returns

   (2)  The Minister may enlarge the time for submitting a return before or after the time prescribed by the regulations for submitting it.

Records and books of account

   37.  (1)  Every collector shall keep records and books of account in accordance with the rules prescribed by the regulations.

Location of records and books of account

   (2)  Records and books of account required to be kept under subsection (1) must be kept,

  (a)  at the collector's place of business or residence in Ontario; or

  (b)  at a place in Ontario or elsewhere approved in writing by the Minister, under any terms and conditions the Minister may impose. 

Requirement by Minister to keep records

   (3)  If, in the opinion of the Minister, a collector fails to keep adequate records and books of account for the purposes of this Part, the Minister may, by notice in writing, require the collector to keep, and the collector shall keep, such records and books of account as are specified in the notice.

Records retention period

   (4)  Every collector shall retain all records and books of account, and every account and voucher necessary to verify the information contained in the records and books of account, until such time as all terms or conditions as may be prescribed by the regulations have been satisfied.

Audit and examination

   38.  (1)  A person authorized by the Minister for any purpose related to the administration or enforcement of this Part may at all reasonable times enter any premises or place where a collector carries on business or keeps rec­ords or books of account, including electronic records, and may,

  (a)  audit or examine the records and books of account and any account, voucher, letter, telegram or other document that relates to or may relate to the tax imposed by this Part or any return required under this Part;

  (b)  examine the property described by an inventory or any property, process or matter, an examination of which may, in his or her opinion, assist in determining the accuracy of an inventory or in ascertaining the information that is or should be in the books or the amount of any tax imposed by this Part;

   (c)  require a collector or his, her or its employees or agents to give all reasonable assistance with the audit or examination and to answer all proper questions relating to the audit or examination either orally or, if so required in writing, on oath or by statutory declaration and for that purpose may require the person to attend at the premises or place. 

Obstruction

   (2)  No person shall obstruct or interfere with a person authorized by the Minister under subsection (1) in the exercise of his or her powers under this section.

Inventory report

   (3)  The Minister may, at any time for a purpose related to the administration or enforcement of this Part or the regulations, require a collector to complete an inventory report in a form acceptable to the Minister showing all draft beer, non-draft beer, wine and wine coolers in the possession of the collector, and the collector shall complete and provide the inventory report to the Minister within such time as the Minister directs. 

Demand for information

   39.  For the purpose of obtaining any information that the Minister considers necessary for the purposes of this Part, the Minister may demand from any person such information as is indicated in a letter delivered personally or sent by registered mail to the person, and the person shall furnish to the Minister all such information in the person's personal possession or under the person's control, in writing, within such reasonable period of time after the delivery or sending of the letter as is specified in the letter.

Assessment of tax collected

   40.  (1)  The Minister may, at any time, assess or reassess an amount collected by a collector under this Part,

  (a)  if the collector has failed to submit a return in accordance with this Part or the regulations;

  (b)  if the collector has failed to remit an amount collected under this Part in accordance with this Part or the regulations; or

   (c)  if a return submitted by the collector under this Part is not substantiated by the collector's records.

Deemed to have been collected

   (2)  An amount assessed or reassessed by the Minister under subsection (1) is deemed to be the amount collected by the collector and required to be remitted to the Minister by the collector.

Minister not bound by returns

   (3)  The Minister is not bound by any return submitted by a collector or by any information furnished by or on behalf of a collector and may, whether or not a return has been submitted, make an assessment at any time of the amount required to be collected on account of tax or paid as tax by the collector.

Continuing liability

   (4)  A collector remains liable to remit all amounts collected under this Part even if the Minister has not made an assessment or has made an incorrect or incomplete assessment.

Penalty for non-collection

   41.  (1)  The Minister may assess a penalty against a collector that fails to collect an amount required to be collected under this Part.

Amount of penalty

   (2)  The amount of the penalty that may be assessed against a collector under subsection (1) is determined as follows:

    1.  If the Minister reasonably believes that the collector's failure to collect the amount is attributable to neglect, carelessness, wilful default or fraud, the penalty is the sum of,

            i.  the amount that the collector failed to collect, and

           ii.  the greater of $100 and 25 per cent of the amount the collector failed to collect.

    2.  If paragraph 1 does not apply, the penalty is equal to the amount that the collector failed to collect.

Penalty, failure to submit a return

   (3)  The Minister may assess a penalty against a collector that fails to submit a return in accordance with this Part and the regulations.

Same

   (4)  The amount of the penalty that may be assessed against a collector under subsection (3) is determined using the formula,

A × B

in which,

  "A"  is the sum of 10 per cent of the amount the collector was required to collect during the period to which the return relates and 5 per cent of the amount of any tax payable by the collector under this Part during the period to which the return relates, and

  "B"  is the number of months or part months commencing with the month in which the return was required to be submitted and ending with the month in which the return is submitted.

Penalty, failure to remit tax with return

   (5)  The Minister may assess a penalty against a collector who fails to remit, with a return made under this Part or the regulations, the tax collectable or payable by the collector equal to 10 per cent of the tax collectable or 5 per cent of the tax payable by the collector, as the case may be, for the period covered by the return.

If collector subsequently collects

   (6)  If the collector subsequently collects the amount the collector was required to collect during a period and in respect of which the collector paid a penalty under subsection (1), the collector may retain the collected amount.

Assessing purchasers and collectors

   42.  (1)  Subject to subsections (2) to (5), the Minister may assess or reassess,

  (a)  tax payable by a purchaser, within four years after the day on which the tax becomes payable;

  (b)  a penalty under subsection 41 (1) for failing to collect an amount under this Part, within four years after the day the amount was required to be collected; and

   (c)  a penalty under subsection 41 (3) for failing to submit a return within four years after the day on which the return was required to be submitted.

No time limit if neglect, carelessness, etc.

   (2)  Despite subsection (1), if the Minister establishes that a collector has made a misrepresentation that is attributable to neglect, carelessness or wilful default or has committed any fraud in making a return, in supplying information under this Part or in omitting to disclose information under this Part, subsection (1) does not apply, and the Minister may assess or reassess the amount required to be remitted or the tax, interest or penalty for which the collector is liable at any time the Minister considers reasonable.

Exception, waiver of limitation

   (3)  The Minister may assess or reassess a purchaser or collector at any time if the purchaser or collector has filed with the Minister a waiver in a form approved by the Minister before the expiry of the applicable time limit set out in subsection (1). 

Revocation of waiver

   (4)  If a person files a waiver under subsection (3), the person may file a notice of revocation of the waiver in a form approved by the Minister.

Effect of revocation

   (5)  If a person files a notice of revocation of the waiver under subsection (4), the Minister shall not issue an assessment or reassessment in reliance on the waiver more than one year after the day on which the notice of revocation is filed.

Requirement to pay penalties

   43.  Every collector against whom the Minister assesses a penalty under this Part shall pay the penalty when assessed for it.

Interest

   44.  (1)  If on a particular day a debt as calculated under subsection (2) is payable by a person, the person shall pay interest in accordance with the regulations on the amount of the debt from that day to the day the amount is received by the Minister.

Amount of debt calculation

   (2)  In this section, the amount of the debt payable by a person under this Part at a particular day is the amount by which "A" exceeds "B" where,

  "A"  is the sum of,

         (a)  all amounts of or on account of tax under this Part that were payable or collectable by the person before that day,

         (b)  all penalties assessed under this Part against the person at any time before that day,

          (c)  all refunds taken under this Part that are disallowed in respect of a period of time ending before that day, and

         (d)  all interest payable by the person under this section before that day, and

  "B"  is the sum of,

         (a)  all amounts of or on account of tax that were paid or remitted by the person under this Part before that day and the amount of any refund owing under any other Act that was applied by the Minister to the person's liabilities under this Part before that day,

         (b)  the amount of all refunds taken under this Part before that day, and

          (c)  all interest credited to the person before that day. 

Compounding

   (3)  The interest under subsection (1) is compounded daily to the day on which it is paid.

Minimum liability

   (4)  If the amount of interest payable by a person under this section is less than a minimum amount to be determined from time to time by the Minister, no interest is payable by the person under this section.

Interest on penalties

   (5)  For the purposes of this section, interest on a penalty assessed under this Part is calculated from the first day the default occurred to which the penalty applies, not from the day the penalty is assessed.

Exemption from payment of interest

   (6)  If, owing to special circumstances, it is considered inequitable to demand from a person all or part of the interest otherwise payable, the Minister may exempt the person from payment of all or part of the interest.

Notice of assessment

   45.  (1)  When the Minister assesses or reassesses an amount as or on account of tax or interest or a penalty under this Part, the Minister shall serve by prepaid mail or by personal service a notice of assessment on the person assessed and that person shall remit or pay to the Minister all amounts assessed and not previously remitted or paid by the person, together with any interest payable under this Part, whether or not an objection or appeal is outstanding.

Assessment valid and binding

   (2)  Any assessment or reassessment made under this Part, subject to being varied or vacated on an objection or appeal and subject to a reassessment, is deemed to be valid and binding despite any error, defect or omission in it or in any proceeding under this Part relating to it.

Overpayments

   46.  (1)  If a collector remits or pays to the Minister more money for a period than was required to be remitted or paid under this Part, the Minister shall,

  (a)  subject to subsection (2), refund the overpayment to the collector; or

  (b)  at the option of the Minister, apply the overpayment to the collector's liability with respect to another period and notify the collector of that action.

Limitation

   (2)  The Minister shall not make a refund under subsection (1),

  (a)  unless an application for the refund is made to the Minister within four years after the day the remittance or payment was made in respect of which the collector is seeking a refund; and

  (b)  unless evidence satisfactory to the Minister is provided to establish the entitlement of the collector to the refund. 

Saving

   (3)  If the result of an assessment or reassessment or the final decision of a court in a proceeding commenced under section 56 is that a collector has made an overpayment under this Part, the Minister shall,

  (a)  refund the overpayment to the collector without requiring the collector to comply with subsection (2); or

  (b)  at the option of the Minister, apply the overpayment to the collector's liability with respect to another period and notify the collector of that action.

Interest on overpayments

   (4)  Interest at the rate or rates determined under the regulations, computed and compounded daily, shall be paid or applied to the amount refunded or applied to another liability from the day that is 30 days after application is made for repayment to the day the overpayment is refunded or applied, but only if the amount is not less than a minimum amount to be determined from time to time by the Minister.

Same

   (5)  If it is finally determined by a decision of the Minister under section 55 or by a decision of the court that an amount to be remitted or paid under this Part by a collector is less than the amount assessed or reassessed to which objection was made or from which an appeal was taken, the interest payable or to be allowed under subsection (4) shall be determined in accordance with the regulations made for the purposes of this subsection.

Application to other liabilities

   (6)  If a collector is about to become liable to remit or pay an amount under this Part or is liable or about to become liable to remit or make a payment under another Act administered by the Minister that imposes a tax or is prescribed by the regulations, the Minister may apply the amount of an overpayment made by the collector to that liability and shall notify the collector if the Minister takes that action. 

Refund to beer vendor, sale on reserve

   47.  (1)  A beer vendor who sells beer to a person who is exempt from the payment of tax imposed by this Part may apply to the Minister through the authorized manufacturer that manufactured the beer for a refund of the amount paid by the beer vendor on account of taxes under this Part in respect of the beer.

Same

   (2)  If the Minister considers it appropriate to do so, the Minister may require a beer vendor referred to in subsection (1) to apply directly to the Minister for refunds described in that subsection and, upon notification by the Minister to the beer vendor and the authorized manufacturer, no further refunds shall be made through the authorized manufacturer.

Assessment re excess refund

   48.  (1)  The Minister may assess a person who has received a refund under this Part to which the person is not entitled or in excess of the amount to which the person is entitled.

Amount of assessment for refund

   (2)  An assessment under subsection (1) shall be for the amount to which the person was not entitled and for interest at the rate or rates determined under the regulations from the day of payment of the refund. 

Explanation

   (3)  An assessment under subsection (2) shall be accompanied by a brief written explanation of why the person is not entitled to the amount specified in the assessment.

Deemed to be tax owing

   (4)  The amount specified in the assessment is deemed to be tax owing to the Crown in right of Ontario, and the sections of this Part relating to notices of assessment, objections, appeals and the collection of amounts owing under this Part apply with necessary modifications to the amount.

Penalty, misrepresentation in application for refund

   49.  The Minister may deny all or part of the amount of a refund claimed by a person or entity under this Part, and may assess a penalty against the person or entity in an amount not more than the amount denied, if the person or entity or another person on their behalf misrepresented a material fact on or in connection with the application for the refund or in a document referred to in or delivered in support of the application.

Recovery of amounts payable under this Part

   50.  (1)  On default of payment of an amount assessed under this Part,

  (a)  the Minister may bring an action for the recovery of the amount in any court in which a debt or money demand of a similar amount may be collected, and every such action shall be brought and executed in and by the name of the Minister or his or her name of office and may be continued by his or her successor in office as if no change had occurred and shall be tried without a jury; and

  (b)  the Minister may issue a warrant directed to the sheriff for an area in which any property of a person or entity liable to make a payment or remittance under this Part is located or situate for the amount owing by the person or entity, for interest on that amount from the day of the issue of the warrant and for the costs and expenses of the sheriff, and the warrant has the same force and effect as a writ of execution issued out of the Superior Court of Justice. 

Security

   (2)  If the Minister considers it advisable to do so, the Minister may accept security for the payment of any amount payable under this Part in any form the Minister considers appropriate.

Compliance to be proved by affidavit

   (3)  For the purpose of any proceeding taken under this Part, the facts necessary to establish compliance on the part of the Minister with this Part as well as the failure of any person or entity to comply with the requirements of this Part shall, unless evidence to the contrary satisfactory to the court is adduced, be sufficiently proved in any court of law by affidavit of the Minister or an employee in the Ministry of Revenue who has knowledge of the facts.

Remedies for recovery of tax

   (4)  The use of any of the remedies provided under this Part does not bar or affect any of the other remedies under this Part, and the remedies provided by this Part for the recovery and enforcement of the payment of any amount payable or required to be remitted under this Part are in addition to any other remedies existing by law, and no action or other proceeding taken in any way prejudices, limits or affects any lien, charge or priority existing under this Part or at law in favour of the Crown in right of Ontario.

Same

   (5)  Neither the prosecution of a person for an offence under this Part nor the assessment and enforcement of any penalty under this Part suspends or affects any remedy for the recovery of any amount payable or required to be remitted under this Part.

Lien on real property

   51.  (1)  Any amount payable or required to be remitted under this Part by a person or entity is, upon registration by the Minister in the proper land registry office of a notice claiming a lien and charge conferred by this section, a lien and charge on any interest the person or entity liable to pay or remit the amount has in the real property described in the notice. 

Lien on personal property

   (2)  Any amount payable or required to be remitted under this Part by any person or entity is, upon registration by the Minister with the registrar under the Personal Property Security Act of a notice claiming a lien and charge under this section, a lien and charge on any interest in personal property in Ontario owned or held at the time of registration or acquired afterwards by the person or entity liable to pay or remit the amount.

Amounts included and priority

   (3)  The lien and charge conferred by subsection (1) or (2) is in respect of all amounts the person or entity is required to pay or remit under this Part at the time of registration of the notice or any renewal of it and all amounts that the person or entity is required to pay or remit afterwards while the notice remains registered and, upon registration of a notice of lien and charge, the lien and charge has priority over,

  (a)  any perfected security interest registered after the notice is registered;

  (b)  any security interest perfected by possession after the notice is registered; and

   (c)  any encumbrance or other claim that is registered against or that otherwise arises and affects the property of the person or entity after the notice is registered.

Exception

   (4)  For the purposes of subsection (3), a notice of lien and charge under subsection (2) does not have priority over a perfected purchase money security interest in collateral or its proceeds and is deemed to be a security interest perfected by registration for the purpose of the priority rules under section 28 of the Personal Property Security Act. 

Lien effective

   (5)  A notice of lien and charge under subsection (2) is effective from the time assigned to its registration by the registrar or branch registrar and expires on the fifth anniversary of its registration unless a renewal notice of lien and charge is registered under this section before the end of the five-year period, in which case the lien and charge remains in effect for a further five-year period from the day the renewal notice is registered.

Same

   (6)  If any amount required to be paid or remitted has not been paid or remitted as required under this Part at the end of the period, or its renewal, referred to in subsection (5), the Minister may register a renewal notice of lien and charge; the lien and charge remains in effect for a five-year period from the day the renewal notice is registered, until the amount is fully paid, and shall be deemed to be continuously registered since the initial notice of lien and charge was registered under subsection (2).

If person or entity is not the registered owner

   (7)  If a person or entity has an interest in real property but is not shown as its registered owner in the proper land registry office,

  (a)  the notice to be registered under subsection (1) shall recite the interest of the person or entity in the real property; and

  (b)  a copy of the notice shall be sent to the registered owner at the owner's address to which the latest notice of assessment under the Assessment Act has been sent.

Secured party

   (8)  In addition to any other rights and remedies, if any amount owed by the person or entity remains outstanding and unpaid, the Minister has, in respect of a lien and charge under subsection (2),

  (a)  all the rights, remedies and duties of a secured party under sections 17, 59, 61, 62, 63 and 64, subsections 65 (4), (5), (6) and (7) and section 66 of the Personal Property Security Act;

  (b)  a security interest in the collateral for the purpose of clause 63 (4) (c) of that Act; and

   (c)  a security interest in the personal property for the purposes of sections 15 and 16 of the Repair and Storage Liens Act, if it is an article as defined in that Act.

Registration of documents

   (9)  A notice of lien and charge under subsection (2) or any renewal of it shall be in the form of a financing statement or a financing change statement as prescribed under the Personal Property Security Act and may be tendered for registration at a branch office established under Part IV of that Act, or by mail addressed to an address prescribed under that Act.

Errors in documents

   (10)  A notice of lien and charge or any renewal of it is not invalidated nor is its effect impaired by reason only of an error or omission in the notice or in its execution or registration, unless a reasonable person is likely to be materially misled by the error or omission. 

Bankruptcy and Insolvency Act (Canada) unaffected

   (11)  Subject to Crown rights provided under section 87 of the Bankruptcy and Insolvency Act (Canada), nothing in this section affects or purports to affect the rights and obligations of any person under that Act. 

Effect of deemed trust

   (12)  The registration of a notice of lien and charge under this section does not affect the operation of section 33 and applies to secure any liability of a person or entity in addition to any deemed trust under that section. 

Definitions

   (13)  In this section, a reference to real property includes a reference to fixtures attached to the real property and an interest in real property includes a leasehold interest in real property.

Garnishment

   52.  (1)  If the Minister has knowledge or suspects that a person or entity (a "third party") is, or within 365 days will become, indebted or liable to make a payment to a person or entity (a "debtor") required to pay or remit an amount under this Part, the Minister may, by registered letter or by letter served personally, require the third party to promptly pay to the Minister any money that is otherwise payable by the third party to the debtor in whole or in part during the 365 days after the third party receives the letter.

Minister's receipt discharges original liability

   (2)  The receipt of the Minister for money paid as required under this section is a good and sufficient discharge of the original liability to the extent of the payment.

Same

   (3)  Despite any provision of this or any other Act, if the Minister has knowledge or suspects that a person or entity is, or within 365 days will become, indebted or liable to make any payment,

  (a)  to a person or entity whose property is subject to a deemed trust created by section 33; or

  (b)  to a secured creditor who has a right to receive the payment that, but for a security interest in favour of the secured creditor, would be payable to the person or entity referred to in clause (a),

the Minister may by ordinary mail or by demand served personally, require the first-named person to pay forthwith to the Minister on account of the liability of the person or entity referred to in clause (a) all or part of the money that would otherwise be paid, and the payment shall become the property of the Crown in right of Ontario despite any security interest in it and shall be paid to the Minister in priority to the security interest.

Liability of debtor

   (4)  Every person or entity who has discharged any liability to a person or entity required to pay or remit an amount under this Part without complying with the requirements of this section is liable to pay to the Minister an amount equal to the liability discharged or the amount that the person or entity was required under this section to pay to the Minister, whichever is the lesser amount.

Service of garnishee

   (5)  If a person or entity (a "third party") who is, or within 365 days will become, indebted or liable to make a payment to a person or entity required to pay or remit an amount under this Part carries on business under a name or style other than the third party's own name, the letter under this section from the Minister to the third party may be addressed using the name or style under which the third party carries on business and, in the case of personal service, the letter is deemed to be validly served if it is left with an adult employed at the place of business of the addressee.

Same

   (6)  If persons ("partners") who are, or within 365 days will become, indebted or liable to pay an amount to a person or entity required to pay or remit an amount under this Part carry on business in partnership, the letter under this section from the Minister to the partners may be addressed to the partnership name and, in the case of personal service, the letter is deemed to be validly served if it is served on a partner or left with an adult employed at the place of business of the partnership.

Limitation

   (7)  Subsections (1) to (6) are subject to the Wages Act.

Application to court

   (8)  The Minister may apply to the Superior Court of Justice for an order, and the court may make the order, requiring any person or entity to comply with a requirement under this section to pay money that the person or entity has failed, without reasonable excuse, to pay to the Minister.

Assessment, non-arm's length transfers

   53.  (1)  In this section,

"member of his or her family" means, in relation to a transferor, the parent, spouse, grandparent, child, grandchild, son-in-law, daughter-in-law, father-in-law or mother-in-law of the transferor; ("membre de sa famille")

"spouse" means spouse as defined in section 29 of the Family Law Act. ("conjoint") 

Liability to pay

   (2)  If at any time a person transfers property (including money), either directly or indirectly, by means of a trust or by any other means, to a member of his or her family, to an individual who is less than 18 years old at the time of the transfer, or to another person or entity with whom the transferor is not dealing at arm's length, the transferor and transferee are jointly and severally liable to pay under this Part the amount determined under subsection (4).

Same

   (3)  For the purpose of subsection (2), persons are deemed not to deal with each other at arm's length if they are deemed not to deal with each other at arm's length for the purposes of the Income Tax Act (Canada).

Amount payable

   (4)  The amount referred to in subsection (2) is the lesser of "A" and "B" where,

  "A"  is the amount, if any, by which the fair market value of the property transferred, at the time of the transfer, exceeds the fair market value, at the time of the transfer, of the consideration given by the transferee for the transfer, and

  "B"  is the sum of all amounts, each of which is,

         (a)  any amount payable by the transferor under this Part at or before the time of the transfer that has not been paid,

         (b)  any amount collected or collectable by the transferor that has not been remitted as required under this Part, or

          (c)  any penalty or interest for which the transferor is liable under this Part at the time of the transfer.

Same

   (5)  Nothing in subsection (2) or (4) limits the liability of the transferor or transferee under any other provision of this Part. 

Assessment

   (6)  The Minister may assess a transferee at any time in respect of any amount payable by reason of this section, and the provisions of this Part relating to notices of assessment, objections, appeals and the collection of amounts owing under this Part apply with necessary modifications.

Effect of payment

   (7)  If a transferor and transferee are jointly and severally liable to pay an amount under this section,

  (a)  a payment by the transferee on account of the transferee's liability discharges the joint liability, to the extent of the payment; and

  (b)  a payment by the transferor on account of the transferor's liability under this Part discharges the transferee's liability under this section to the extent that the payment reduces the balance of the transferor's liability under this Part to an amount less than the amount of the transferee's liability under this section.

Exception

   (8)  Subsection (2) does not apply with respect to a transfer of property, including money, between spouses,

  (a)  under a decree, order or judgment of a competent tribunal; or

  (b)  under a written separation agreement if, at the time of the transfer, the transferor and transferee were living separate and apart as a result of a breakdown of their relationship. 

Liability of corporate directors

   54.  (1)  If a corporation failed to collect an amount required to be collected under this Part or collected the amount but failed to remit it to the Minister or has failed to pay any interest or penalty related to the failure to collect or remit an amount in accordance with this Part and the regulations, the directors of the corporation at the time the corporation was required to collect or remit the amount or to pay the interest or penalty are jointly and severally liable, with the corporation, to pay those amounts.

Exception

   (2)  A director of a corporation is not liable under subsection (1) unless,

  (a)  a warrant of execution for the amount of the corporation's liability as described in subsection (1) has been issued under section 50 and the warrant has been returned by the sheriff unsatisfied in whole or in part;

  (b)  the corporation has become bankrupt due to an assignment or receiving order or it has filed a notice of intention to file or a proposal under the Bankruptcy and Insolvency Act (Canada), and a claim for the amount of the corporation's liability referred to in subsection (1) has been proven within six months after the date of the assignment, receiving order or filing of the proposal; or

   (c)  the corporation becomes subject to a proceeding to which section 33 applies and a claim is made by the Minister during the period beginning on the day on which the Minister should have been advised of the commencement of those proceedings and ending on the day that is six months after the remaining property of the collector has been finally disposed of. 

Prudent director

   (3)  A director of a corporation is not liable for a failure described in subsection (1) if the director exercised the degree of care, diligence and skill to prevent the failure that a reasonably prudent person would exercise in comparable circumstances.

Assessment

   (4)  The Minister may assess a person for an amount payable by the person under this section and, if the Minister sends a notice of assessment, the provisions of this Part relating to notices of assessment, objections, appeals and the collection of amounts owing under this Part apply with necessary modifications.

Time limit

   (5)  The Minister shall not issue a notice of assessment to a person for an amount assessed under subsection (4) more than two years after the person last ceased to be a director of the corporation.

Execution

   (6)  If the warrant of execution referred to in clause (2) (a) has been issued, the amount recoverable from a director is the amount remaining unsatisfied after execution.

Same

   (7)  If a director of a corporation pays an amount in respect of a corporation's liability described in subsection (1) that is proved in liquidation, dissolution or bankruptcy proceedings, the director is entitled to any preference that the Crown in right of Ontario would be entitled to had the amount not been paid and, if the warrant of execution has been issued under section 50, the director is entitled to the assignment of the warrant of execution to the extent of the director's payment, and the Minister is authorized to make the assignment.

Allocation by the Minister

   (8)  For the purposes of this section, the Minister may, at his or her discretion, determine how the payment or payments made by or on behalf of the corporation under this Part are to be applied with respect to amounts the corporation is liable to pay or remit under this Part.

objections and appeals

Notice of objection

   55.  (1)  A person who objects to an assessment made against the person under this Part may, within 180 days after the day of mailing of the notice of assessment, serve on the Minister a notice of objection in the form approved by the Minister.

Facts and reasons to be given

   (2)  The notice of objection must,

  (a)  clearly describe each issue raised by way of objection; and

  (b)  fully set out the facts and reasons relied on by the person in respect of each issue.

Same

   (3)  If a notice of objection does not fully set out the facts and reasons relied on by the person in respect of an issue, the Minister may in writing request the person to provide the information, and the person is deemed to have complied with clause (2) (b) in respect of the issue if the person provides the information to the Minister in writing within 60 days after the day the request is made by the Minister.

Limitation

   (4)  A person shall not raise, by way of objection under this section to a reassessment or to a variation of an assessment under subsection (7), any issue that the person is not entitled to raise by way of appeal under section 56 in respect of the reassessment or a variation of the assessment.

Service

   (5)  A notice of objection under this section must be served by being sent by registered mail addressed to the Minister or by such other method of service as the Minister prescribes.

Computation of time

   (6)  For the purpose of calculating the number of days mentioned in subsection (1) or (3) or 56 (1), the day on which a notice of assessment is mailed, a request is made under subsection (3) or a notification is given under subsection (7) is the day stated in the notice of assessment, request or notification.

Reconsideration

   (7)  Upon receipt of the notice of objection, the Minister shall with all due dispatch reconsider the assessment objected to and vacate, confirm or vary the assessment or reassess, and the Minister shall notify the person making the objection of his or her action in writing.

Appeal

   56.  (1)  When the Minister has given the notification required under subsection 55 (7), the person who served the notice of objection may appeal to the Superior Court of Justice to have the assessment vacated or varied, but no appeal under this section shall be instituted after the expiry of 90 days after the day the notification was mailed to the person under subsection 55 (7).

Appeal, how instituted

   (2)  An appeal to the Superior Court of Justice is instituted by,

  (a)  filing with the court a notice of appeal in the form approved by the Minister;

  (b)  paying a fee to the court in the same amount and manner as the fee payable under regulations made under the Administration of Justice Act on the issue of a statement of claim; and

   (c)  serving on the Minister a copy of the notice of appeal as filed.

Limitation

   (3)  A person is entitled to raise by way of appeal only those issues raised by the person in the notice of objection to the assessment being appealed from and in respect of which the person has complied or is deemed to have complied with subsection 55 (2).

Exception

   (4)  Despite subsection (3), a person may raise by way of appeal an issue forming the basis of a reassessment or a variation of an assessment if the issue was not part of the assessment with respect to which the person served the notice of objection. 

Waived right of objection or appeal

   (5)  Despite subsection (1), no person shall institute an appeal under this section to have an assessment vacated or varied in respect of an issue for which the right of objection or appeal has been waived in writing by or on behalf of the person.

Service

   (6)  A notice of appeal must be served on the Minister by being sent by registered mail addressed to the Minister.

Statement of allegations

   (7)  The person appealing shall set out in the notice of appeal a statement of the allegations of fact and the statutory provisions and reasons that the person intends to submit to support the appeal.

Reply to notice of appeal

   (8)  The Minister shall with all due dispatch serve on the person appealing and file in the court a reply to the notice of appeal admitting or denying the facts alleged and containing a statement of such further allegations of fact and all statutory provisions and reasons that the Minister intends to rely on and, if the Minister fails to serve the reply within 180 days after the day of service on him or her of the notice of appeal,

  (a)  the appellant may, on 21 days notice to the Minister, bring a motion before a judge of the Superior Court of Justice for an order requiring the reply to be served within such time as the judge shall order;

  (b)  the judge may, if he or she considers it proper in the circumstances, also order that, upon failure by the Minister to serve the reply in the time specified in the order, the assessment with respect to which the appeal is taken shall be vacated and any amount paid pursuant to the assessment or any disallowed refund that is the subject of the appeal shall be repaid or refunded to the appellant.

Appeal procedure

   (9)  On the filing of the material referred to in subsection (8) with the Superior Court of Justice, the matter is deemed to be an action in the court.

Facts not set out may be pleaded

   (10)  Any fact or statutory provision not set out in the notice of appeal or reply may be pleaded or referred to in such manner and upon such terms as the court may direct.

Disposal of appeal

   (11)  The court may dispose of the appeal by,

  (a)  dismissing it;

  (b)  allowing it; or

   (c)  allowing it and,

           (i)  vacating the assessment,

          (ii)  varying the assessment,

         (iii)  restoring the assessment, or

         (iv)  referring the assessment back to the Minister for reconsideration and reassessment. 

Court may order payment or refund

   (12)  The court may, in delivering judgment disposing of an appeal, order that a payment or refund be made by the appellant or the Minister, as the case may be, and may make such order as to costs as is considered proper.

Appeal proceedings closed to public

   (13)  Proceedings under this section are to be closed to the public if requested by the appellant or the Minister.

Appeals, Superior Court of Justice practice to govern

   (14)  The practice and procedure of the Superior Court of Justice, including the right of appeal and the practice and procedure relating to appeals, apply to every matter deemed to be an action under this section, and every judgment and order given or made in every such action may be enforced in the same manner and by the like process as a judgment or order given or made in an action commenced in the court.

Irregularities, etc., directory provisions

   57.  An assessment shall not be vacated or varied on appeal by reason only of any irregularity, informality, omission or error on the part of any person in the observation of any directory provision of this Part.

Application under subrule 14.05 (2), Rules of Civil Procedure

   58.  (1)  If the following conditions are satisfied, a person may make an application under subrule 14.05 (2) of the Rules of Civil Procedure to a judge of the Superior Court of Justice:

    1.  The application is to determine one or more issues of law that depend solely on the interpretation of,

            i.  this Part or the regulations, or

           ii.  this Part or the regulations and another Ontario statute or regulation.

    2.  The Minister has indicated in writing that the Minister is satisfied that it is in the public interest for the applicant to make the application. 

    3.  The Minister and the applicant have executed a statement of agreed facts on which they both intend to rely and the applicant files the statement as part of the applicant's application record.

    4.  No facts remain in dispute between the Minister and the applicant that either of them believes may be relevant to the determination of any issue of law that is a subject of the application. 

Application of rule 38.10, Rules of Civil Procedure

   (2)  Rule 38.10 of the Rules of Civil Procedure does not apply to an application referred to in this section, except that the presiding judge may, on the hearing of the application, adjourn the application in whole or in part and with or without terms under clause 38.10 (1) (a) of the Rules of Civil Procedure.

Disposition of application

   (3)  The court may dispose of an application that is authorized under this section by,

  (a)  making a declaration of law in respect of one or more issues of law forming the subject of the application;

  (b)  declining to make a declaration of law in respect of any of the issues of law forming the subject of the application; or

   (c)  dismissing the application.

Effect of declaration of law

   (4)  No declaration of law made on an application under this section,

  (a)  is binding on the Minister and the applicant except in relation to the facts agreed to by them in the proceeding; or

  (b)  otherwise affects the rights of the Minister or the applicant in any appeal instituted under this Part.

No applications under subrule 14.05 (3)

   (5)  No person other than the Minister may bring an application under subrule 14.05 (3) of the Rules of Civil Procedure in respect of any matter arising under this Part.

Other proceedings

   (6)  On the motion of the Minister, the court shall dismiss a proceeding commenced by an application under rule 14.05 of the Rules of Civil Procedure relating to a matter under this Part or the regulations if any condition in subsection (1) has not been satisfied or the application is prohibited under subsection (5).

Extension of time to object or appeal

   59.  The time within which a notice of objection is to be served or an appeal is to be instituted may be extended by the Minister if application for the extension is made,

  (a)  in respect of a notice of objection,

           (i)  before the expiry of the time limit under subsection 55 (1), or

          (ii)  within one year from the day of mailing or delivery by personal service of the notice of assessment that is the subject of the objection if the person wishing to object furnishes to the Minister an explanation satisfactory to the Minister of why the notice of objection could not be served in accordance with subsection 55 (1); or

  (b)  with respect to an appeal, before the expiry of the time limit under subsection 56 (1).

offences

Offences

Failure to submit return or remit tax

   60.  (1)  Every collector that fails to submit a return or remit an amount on account of tax to the Minister in accordance with this Part and the regulations is guilty of an offence and, in addition to any penalty that may be assessed under this Part, is liable on conviction to a fine of,

  (a)  not less than $500; and

  (b)  not more than the sum of $10,000 plus twice the amount on account of tax collected or required to be collected during the period to which the return relates.

False statements, etc.

   (2)  Every person is guilty of an offence who has,

  (a)  made, or participated in, assented to or acquiesced in the making of false or deceptive statements in a return, statement or answer, delivered or made as required under this Part or the regulations;

  (b)  to evade collection or remittance of a tax imposed by this Part, destroyed, altered, mutilated, secreted or otherwise disposed of records or books of account;

   (c)  made, assented to or acquiesced in the making of false or deceptive entries or omitted, or assented to or acquiesced in the omission to enter a material particular in records or books of account; or

  (d)  wilfully, in any manner, evaded or attempted to evade compliance with this Part.

Same, amount of fine, imprisonment, etc.

   (3)  A person who is guilty of an offence under subsection (2) is liable on conviction, in addition to any penalty that may be assessed under this Part,

  (a)  to a fine of,

           (i)  not less than the greater of $500 and 25 per cent of the amount on account of tax collected or required to be collected during the period to which the return relates, and

          (ii)  not more than the sum of $10,000 plus twice the amount on account of tax collected or required to be collected during the period to which the return relates;

  (b)  to imprisonment for a term of not more than two years; or

   (c)  to both a fine under clause (a) and imprisonment under clause (b).

Failure to collect tax

   (4)  Every collector that fails to collect an amount on account of tax as required under this Part is guilty of an offence and, in addition to any penalty that may be assessed under this Part, is liable on conviction to a fine equal to the sum of,

  (a)  the amount that should have been collected, as determined under subsection (5); and

  (b)  an amount not less than $500 and not more than the sum of $10,000 and twice the amount referred to in clause (a). 

Determination of amount that should have been collected

   (5)  The Minister shall determine the amount that should have been collected by a collector from such information as is available to the Minister and shall issue a certificate as to the amount, but, except where the Minister considers that there has been a deliberate evasion of this Part, the Minister shall not consider a period of more than four years in determining the amount that should have been collected. 

Certificate of amount

   (6)  In any prosecution under subsection (4), a certificate signed or purported to be signed by the Minister stating the amount that should have been collected by a collector is proof, in the absence of evidence to the contrary, of the amount the collector should have collected and of the authority of the person giving or making the certificate without any proof of appointment or signature. 

Obtaining refund by deceit, falsehood, etc.

   (7)  Every person who, by deceit, falsehood or any other fraudulent means, obtains or attempts to obtain a refund under this Part to which the person is not entitled is guilty of an offence and is liable on conviction,

  (a)  to,

           (i)  a fine of not less than $500 and not more than $10,000, and

          (ii)  an additional fine of not more than twice the amount of the refund the person obtained or sought to obtain;

  (b)  to imprisonment for a term of not more than two years; or

   (c)  to both the fines under clause (a) and imprisonment under clause (b).

Offence

   (8)  Every person who contravenes or fails to comply with any of the following provisions is guilty of an offence and is liable on conviction to a fine of $50 multiplied by the number of days the person contravened the provision or failed to comply with the provision:

    1.  Section 37.

    2.  Clause 38 (1) (c).

    3.  Subsection 38 (2).

General offence

   (9)  Every person who contravenes or fails to comply with any provision of this Part or the regulations is guilty of an offence and, if no other fine is provided under this Part on conviction of the offence, is liable on conviction to a fine, in addition to any penalty that may be assessed under this Part, of not less than $100 and not more than $5,000. 

Same

   (10)  Every individual who directed, authorized, assented to, acquiesced in or participated in the commission of any act or an omission which is an offence under this Part and for which a corporation, association or other entity would be liable to prosecution under this Part is guilty of an offence and on conviction is liable to the punishment provided for the offence, whether or not the corporation, association or other entity has been prosecuted or convicted. 

Limitation

   (11)  Proceedings shall not be commenced in respect of an offence under this Part more than six years after the day on which the offence was, or is alleged to have been, committed.

evidence

Admission of evidence

   61.  (1)  The Minister, or a person authorized by the Minister, may, for any purpose relating to the administration or enforcement of this Part, reproduce from original data stored electronically any document previously issued by the Minister under this Part, and the electronically reproduced document is admissible in evidence and shall have the same probative force as the original would have had if it had been proved in the ordinary way.

Same

   (2)  If a return, document or any other information has been delivered by a person to the Minister on computer disk or other electronic medium, or by electronic filing as permitted under the regulations, a document, accompanied by the certificate of the Minister, or of a person authorized by the Minister, stating that the document is a print-out of the return, document or information received by the Minister from the person and certifying that the information contained in the document is a true and accurate representation of the return, document or information delivered by the person, is admissible in evidence and shall have the same probative force as the original return, document or information would have had if it had been delivered in paper form.

Same

   (3)  If the data contained on a return or other document received by the Minister from a person is stored electronically by the Minister on computer disk or other electronic medium and the return or other document has been destroyed by a person so authorized by the Minister, a document, accompanied by the certificate of the Minister or of a person authorized by the Minister stating that the document is a print-out of the data contained on the return and other document received and stored electronically by the Minister and certifying that the information contained in the document is a true and accurate representation of the data contained on the return or document delivered by the person, is admissible in evidence and shall have the same probative force as the original return or document would have had if it had been proved in the ordinary way.

confidentiality

Confidentiality

   62.  (1)  Except as authorized by this section, no person employed by the Government of Ontario, the Board or the Commission shall,

  (a)  knowingly communicate or knowingly allow to be communicated to any person any information obtained by or on behalf of the Minister for the purposes of this Part; or

  (b)  knowingly allow any person to inspect or to have access to any record or thing obtained by or on behalf of the Minister for the purposes of this Part.

Non-disclosure

   (2)  Despite any other Act, but subject to subsection (3), no person employed by the Government of Ontario, the Board or the Commission shall be required, in connection with any legal proceedings,

  (a)  to give evidence relating to any information obtained by or on behalf of the Minister for the purposes of this Part; or

  (b)  to produce any record or thing obtained by or on behalf of the Minister for the purposes of this Part. 

Exceptions

   (3)  Subsections (1) and (2) do not apply in respect of,

  (a)  criminal proceedings under any Act of the Parliament of Canada;

  (b)  proceedings in respect of the trial of any person for an offence under an Act of the Legislature; or

   (c)  proceedings relating to the administration or enforcement of this Act or the collection or assessment of an amount under this Part.

Same

   (4)  A person employed by the Government of Ontario, the Board or the Commission may, in the course of his or her duties in connection with the administration or enforcement of this Part,

  (a)  communicate or allow to be communicated to an official or authorized person employed by the Government of Ontario, the Board or the Commission in the administration and enforcement of any law any information obtained by or on behalf of the Minister for the purposes of this Part; and

  (b)  allow an official or authorized person employed by the Government of Ontario, the Board or the Commission in the administration or enforcement of any law to inspect or have access to any record or thing obtained by or on behalf of the Minister for the purposes of this Part. 

Copies

   (5)  Despite anything in this Act, the Minister may permit a copy of any record or thing obtained by the Minister or on the Minister's behalf for the purposes of this Part to be given to,

  (a)  the person from whom the record or thing was obtained;

  (b)  any person,

           (i)  for the purposes of any objection or appeal that has been or may be taken by that person under this Part arising out of any assessment of tax, interest or penalties under this Part in connection with which the record or thing was obtained, or

          (ii)  by whom any amount payable under this Part is payable or has been paid;

   (c)  the legal representative of a person mentioned in clause (a) or (b); or

  (d)  an agent authorized in writing by a person mentioned in clause (a) or (b) to act as their agent.

Disclosure to other jurisdictions

   (6)  Despite anything in this or any other Act, the Minister may permit information or a copy of any record or thing obtained by the Minister or on the Minister's behalf for the purposes of this Part to be given to,

  (a)  a minister of the Government of Canada or any officer or employee employed under a minister of the Government of Canada for the purposes of administering or enforcing an Act of the Parliament of Canada imposing any tax or duty; or

  (b)  a minister of the government of any province or territory of Canada or officer or employee employed under that minister, for the purposes of administering or enforcing an Act or ordinance of the Legislature of that province or territory imposing any tax or duty,

if the minister of the Government of Canada or the minister of the government of the province or territory, as the case may be, is permitted to give to the Minister information or copies of any record or thing obtained by or on behalf of the minister of the Government of Canada, or the minister of the government of that province or territory, as the case may be, in the administration or enforcement of that Act for the purposes of the administration or enforcement of this Act. 

Communication with the Commission

   (7)  The Minister may disclose, or allow to be disclosed, information necessary for the administration and enforcement of the tax imposed by this Part to an official of the Commission or the Board.

Offence

   (8)  Every person,

  (a)  who contravenes subsection (1); or

  (b)  to whom information has been provided under the authority of subsection (4), (5), (6) or (7) who uses, communicates or allows to be communicated such information for any purposes other than that for which it was provided,

is guilty of an offence and is liable on conviction to a fine of not more than $2,000.

the commission

Commission functions

   63.  (1)  If requested to do so by the Minister, the Commission shall act as an agent of the Crown to collect tax and other amounts payable under this Part.

Compensation

   (2)  The Minister may reimburse the Commission for any costs the Commission incurs in carrying out its functions under this Part as agent of the Crown and such reimbursement shall be paid out of money appropriated for that purpose by the Legislature.

Commission may collect and use information

   (3)  The Commission may, for the purposes of carrying out its functions under subsection (1), collect and use information,

  (a)  obtained in the course of carrying out its functions under this Part; or

  (b)  disclosed to it by the Minister.

Commission and Board may disclose information

   (4)  The Commission and the Board may, for the purposes of the administration and enforcement of this Part, disclose to the Minister information obtained in the course of carrying out their functions under this Part.

Same

   (5)  The Minister may collect and use information disclosed by either the Commission or the Board to the Minister for the purposes of administering and enforcing this Part.

Deemed collection

   (6)  Despite any other Act, all information collected by the Minister from the Commission or the Board under this Part is deemed to be information collected directly by the Minister from the person or entity from whom the Commission or Board collected the information.

Commission resolutions revoked

   64.  The following resolutions and portions of resolutions of the Commission are of no force or effect on and after the first day Division B applies:

    1.  The resolution dated February 20, 1998 adopting clauses 14 (1) (a), (b) and (d) of Regulation 720 of the Revised Regulations of Ontario, 1990 (Manufacturers' Licences) made under the Liquor Licence Act, as those clauses read before August 29, 2002, relating to the 2 per cent winery store fee for wine and wine coolers, the volume levy for wine and the environmental levy for wine and wine coolers.

    2.  Sections 2, 3 and 4 of the resolution dated April 30, 2003, as amended, relating to the basic fee on duty free sales and a volume levy and environmental levy for beer.

    3.  The resolution entitled "Revised Fee Brew Pub Endorsement" dated June 4, 2004.

    4.  The resolution entitled "Revised Beer Fees" dated June 4, 2004, relating to the basic fee for beer manufacturers and microbreweries.

    5.  The resolution entitled "Revised Fee for Manufacturers of Wine Coolers" dated June 4, 2004, relating to the volume levy for wine coolers.

tax-included pricing

Tax-included pricing

   65.  (1)  All beer sold by beer vendors to purchasers and all wine and wine coolers sold by wineries at winery retail stores to purchasers shall be made available for sale at a price that includes all taxes payable under this Part by a purchaser on the purchase of the beer, wine or wine cooler.

Obligation to make information on taxes available to purchaser

   (2)  Beer vendors and wineries shall make available to purchasers such information with respect to the amount of taxes included in the price as the Minister specifies and shall make the information available by a method approved by the Minister.

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

Division E - Retroactive Tax

Application

   66.  Sections 67 to 69,

  (a)  apply in respect of the purchase of beer, wine and wine coolers on and after January 1, 2007 and before the first day Division B applies; and

  (b)  are retroactive to the extent necessary to give them effect on and after January 1, 2007.

   9.  The Act is amended by adding the following sections:

draft and non-draft beer

Tax, beer

Basic tax

   67.  (1)  A purchaser who, on or after January 1, 2007 and before the first day Division B applies, purchases beer in Ontario shall pay a basic tax in respect of the purchase at the rate of,

  (a)  55.55 cents per litre if the beer is non-draft beer; or

  (b)  40.55 cents per litre if the beer is draft beer.

Exception re draft beer manufactured at a brew pub

   (2)  Despite subsection (1), if draft beer is manufactured at a brew pub by the holder of a licence with a brew pub endorsement and is purchased at the brew pub or at a secondary location related to the brew pub, the rate of basic tax in respect of the purchase is,

  (a)  6.70 cents per litre if the draft beer was purchased at the brew pub; or

  (b)  24.30 cents per litre if the draft beer was purchased at the secondary location.

Volume tax

   (3)  A purchaser who, on or after January 1, 2007 and before the first day Division B applies, purchases draft beer made by a beer manufacturer or non-draft beer shall pay a volume tax in respect of the purchase at the volume tax rate of 17.6 cents per litre of beer.

Environmental tax

   (4)  A purchaser who, on or after January 1, 2007 and before the first day Division B applies, purchases draft beer made by a beer manufacturer or non-draft beer shall pay an environmental tax of 8.93 cents for each non-refillable container in which the beer is purchased.

wine and wine coolers

Tax, wine and wine coolers

Basic tax

   68.  (1)  A purchaser who, on or after January 1, 2007 and before the first day Division B applies, purchases wine or a wine cooler at a winery retail store shall pay to the Crown in right of Ontario a basic tax in respect of the purchase of the wine or wine cooler at the basic tax rate of 2 per cent of the selling price of the wine or wine cooler.

Selling price

   (2)  For the purposes of subsection (1), the selling price of wine or a wine cooler sold at a winery retail store to a purchaser is the amount fixed by the Board for the wine or wine cooler under the authority of clause 3 (1) (i) of the Liquor Control Act less the sum of,

  (a)  the volume tax imposed under subsection (3) and the environmental tax imposed under subsection (4);

  (b)  the amount of tax imposed under subsection 2 (2) of the Retail Sales Tax Act in respect of the purchase of the wine or wine cooler;

   (c)  all taxes imposed under Part IX of the Excise Tax Act (Canada) in respect of the purchase of the wine or wine cooler; and

  (d)  the amount of any deposit on the container containing the wine or wine cooler that is required to be collected or remitted under the Ontario deposit return program referred to in the regulations made under the Liquor Control Act.

Volume tax

   (3)  A purchaser who, on or after January 1, 2007 and before the first day Division B applies, purchases wine or a wine cooler at a winery retail store shall pay to the Crown in right of Ontario a volume tax in respect of the wine or wine cooler at the volume tax rate of,

  (a)  29 cents per litre for wine; or

  (b)  28 cents per litre for a wine cooler.

Environmental tax

   (4)  A purchaser who, on or after January 1, 2007 and before the first day Division B applies, purchases wine or a wine cooler in Ontario shall pay an environment tax of 8.93 cents for each non-refillable container in which the wine or wine cooler is purchased.

tax collection

Tax deemed to be paid

   69.  (1)  Every purchaser who is subject to tax under this Part in respect of the purchase of beer, wine or a wine cooler on or after January 1, 2007 and before the first day Division B applies is deemed to pay the tax at the time he or she purchases the beer, wine or wine cooler.

Tax deemed to be collected

   (2)  Every beer vendor, winery and affiliate of a winery who sells beer, wine or a wine cooler on or after January 1, 2007 and before the first day Division B applies in respect of which fees have been paid pursuant to a resolution or the portion of a resolution described in section 64,

  (a)  is deemed to collect the tax payable under this Division in respect of the beer, wine or wine cooler at the time the beer, wine or wine cooler is sold; and

  (b)  is deemed to remit the tax to the Commission as agent for the Minister at the time the fees are paid.

Same

   (3)  All amounts deemed under subsection (2) to be collected and remitted are deemed to be collected and retained by the Minister as payment for and in respect of tax payable under this Division.

   10.  The Act is amended by adding the following sections:

Division F - Forms and Regulations

Forms

   70.  The Minister may approve the use of forms for any purpose of this Part and the forms may require the provision of such information as the Minister may require.

Regulations

Lieutenant Governor in Council

   71.  (1)  The Lieutenant Governor in Council may make regulations defining terms or expressions used in this Part that are not defined in this Part.

Minister of Finance

   (2)  The Minister of Finance may make regulations,

  (a)  prescribing anything referred to in this Part as prescribed by the regulations;

  (b)  prescribing rules relating to records and books of account to be maintained by collectors, including rules relating to their content and when they may be destroyed;

   (c)  prescribing rules for the payment of tax and for the collection and remittance of amounts on account of tax;

  (d)  prescribing rules relating to returns and the submission of returns by collectors;

  (e)  providing for the calculation and payment of interest on amounts paid in excess of amounts payable under this Part and prescribing the rate of interest or the manner of determining the rate of interest;

    (f)  providing for the refund of tax or amounts on account of tax, in whole or in part, owing to special circumstances and prescribing the terms and conditions under which the refund may be made;

  (g)  governing the procedures to be followed for a person or class of persons to obtain the benefit of an exemption from tax under subsection 17 (3) or to obtain a refund under section 46 or 47.

Retroactive

   (3)  A regulation made under this Part may come into force before the day it is filed and apply in respect of a period before the regulation is filed.

Division G - Transitional

Inventory report

   72.  (1)  The Minister may require a beer vendor or a class of beer vendors to complete an inventory report showing the total amount of draft and non-draft beer in their possession immediately before the first day Division B applies.

Tax remittance

   (2)  The following rules apply if the Minister requires a beer vendor to comply with subsection (1):

    1.  The beer vendor is deemed to buy the beer in its inventory for resale immediately before the first day Division B applies.

    2.  The beer vendor shall remit to the Minister, in the manner required by the Minister, the difference between the fees paid with respect to the beer pursuant to a resolution or portion of a resolution described in section 64 and the tax collectable by the beer vendor on the beer under Division C.

Complementary Amendments

   11.  (1)  Subsection 6 (6) of the Liquor Licence Act is repealed and the following substituted:

Effect of default under tax statute

   (6)  Despite any other provision of this Act, the Registrar shall not renew or transfer a licence to sell liquor or a licence to operate a ferment on premises facility and no person is entitled to the renewal or transfer of either of those licences if the holder of the licence is in default of filing a return or paying any tax, interest or penalty assessed under the Retail Sales Tax Act or Part II of the Alcohol and Gaming Regulation and Public Protection Act, 1996.

   (2)  Subsection 13 (2) of the Act is repealed and the following substituted:

Exception, default under tax statute

   (2)  Subsection (1) does not apply in respect of a licence to sell liquor or to operate a ferment on premises facility if the holder of the licence is in default of filing a return or of paying any tax, interest or penalty assessed under the Retail Sales Tax Act or Part II of the Alcohol and Gaming Regulation and Public Protection Act, 1996.

Commencement

   12.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Ontario Tax Plan for More Jobs and Growth Act, 2009 receives Royal Assent.

Same

   (2)  Sections 8, 9 and 11 come into force on a day to be named by proclamation of the Lieutenant Governor.

Schedule B
Architects Act

   1.  Section 14 of the Architects Act is amended by adding the following subsection:

Exclusion

   (2.1)  Sections 3.2, 3.3 and 3.4 of the Business Corporations Act do not apply to a corporation that has been issued a certificate of practice under this section.

   2.  Section 16 of the Act is amended by adding the following subsection:

Exclusion

   (2)  Sections 3.2, 3.3 and 3.4 of the Business Corporations Act do not apply to a corporation that is a partner in a partnership of corporations that has been issued a certificate of practice under this section.

Commencement

   3.  This Schedule is deemed to have come into force on November 1, 2001.

Schedule C
Commodity Futures Act

   1.  Subsection 65 (1) of the Commodity Futures Act is amended by adding the following paragraph:

  1.1  Prescribing circumstances in which a suspended registration is or may be reinstated.

Commencement

   2.  This Schedule comes into force on the day the Ontario Tax Plan for More Jobs and Growth Act, 2009 receives Royal Assent.

Schedule D
Community Small Business Investment Funds Act

   1.  (1)  Clause (c) of the definition of "eligible investor" in subsection 12 (1) of the Community Small Business Investment Funds Act is amended by striking out "or (b.1)" at the end.

   (2)  The English version of subsection 12 (3) of the Act is amended by striking out "labour sponsored investment corporation" in the portion before paragraph 1 and substituting "labour sponsored investment fund corporation".

   2.  The definition of "A" in subsection 14.1 (2) of the Act is repealed and the following substituted:

  "A"  is,

         (a)  if the corporation issued the share on or before March 1, 2010,

                   (i)  20 per cent if the corporation issued the share as a research oriented investment fund, or

                  (ii)  15 per cent in any other case,

         (b)  if the corporation issued the share after March 1, 2010 and on or before March 1, 2011,

                   (i)  15 per cent if the corporation issued the share as a research oriented investment fund, or

                  (ii)  10 per cent in any other case,

          (c)  if the corporation issued the share after March 1, 2011 and on or before February 29, 2012,

                   (i)  10 per cent if the corporation issued the share as a research oriented investment fund, or

                  (ii)  5 per cent in any other case, or

         (d)  0, if the corporation issued the share after February 29, 2012, and

   3.  Clause 18.11 (4) (a) of the Act is amended by striking out "January 1, 2011" and substituting "January 1, 2010".

   4.  Subsection 19 (1) of the Act is amended by striking out "and" at the end of clause (d) and by adding the following clause:

(d.1) investments purchased from a labour sponsored investment fund corporation,

           (i)  if the investment corporation purchasing and holding the investments is a labour sponsored investment fund corporation, and

          (ii)  if, immediately before they were purchased, the investments were eligible investments of the labour sponsored investment fund corporation that sold them; and

   5.  (1)  Clause 27 (2) (a) of the Act is repealed and the following substituted:

  (a)  the sum of,

           (i)  15 per cent of the equity capital received by the corporation in respect of all Class A shares of the corporation,

                 (A)  that were then outstanding less than eight years immediately preceding the date of revocation, surrender of registration, winding-up or dissolution, and

                 (B)  that were issued on or before March 1, 2010,

          (ii)  10 per cent of the equity capital received by the corporation in respect of all Class A shares of the corporation,

                 (A)  that were then outstanding less than eight years immediately preceding the date of revocation, surrender of registration, winding-up or dissolution, and

                 (B)  that were issued after March 1, 2010 and on or before March 1, 2011, and

         (iii)  5 per cent of the equity capital received by the corporation in respect of all Class A shares of the corporation,

                 (A)  that were then outstanding less than eight years immediately preceding the date of revocation, surrender of registration, winding-up or dissolution, and

                 (B)  that were issued after March 1, 2011 and on or before February 29, 2012; and

   (2)  Subsection 27 (2.1) of the Act is repealed and the following substituted:

Repayment of tax credits re surrender of registration, wind up, etc.

   (2.1)  A labour sponsored investment fund corporation that makes a request under section 26 to surrender its registration under this Act or that proposes to wind up or dissolve shall immediately pay to the Minister an amount of money equal to the sum of,

  (a)  the total of all amounts, each of which is the amount in respect of a Class A share of the capital stock of the particular corporation originally acquired on or before March 1, 2010 and outstanding immediately before the particular time that is determined using the formula,

A × B

in which,

         "A"  is,

                 (a)  if the original acquisition of the share was before May 7, 1996 and less than five years before the particular time, 4 per cent of the consideration received by the particular corporation for the issue of the share,

                 (b)  if the original acquisition of the share was after May 6, 1996 and less than eight years before the particular time, 1.875 per cent of the consideration received by the particular corporation for the issue of the share, or

                  (c)  in any other case, nil, and

         "B"  is,

                 (a)  if the original acquisition of the share was before May 6, 1996, the number obtained when the number of whole years throughout which the share was outstanding before the particular time is subtracted from five, or

                 (b)  in any other case, the number obtained when the number of whole years throughout which the share was outstanding is subtracted from eight;

  (b)  the total of all amounts, each of which is the amount in respect of a Class A share of the capital stock of the particular corporation originally acquired after March 1, 2010 and on or before March 1, 2011 and outstanding immediately before the particular time that is determined using the formula,

C × D

in which,

         "C"  is 1.25 per cent, and

         "D"  is the number obtained when the number of whole years throughout which the share was outstanding is subtracted from eight; and

   (c)  the total of all amounts, each of which is the amount in respect of a Class A share of the capital stock of the particular corporation originally acquired after March 1, 2011 and on or before February 29, 2012 and outstanding immediately before the particular time that is determined using the formula,

E × F

in which,

         "E"  is 0.625 per cent, and

         "F"  is the number obtained when the number of whole years throughout which the share was outstanding is subtracted from eight.

   (3)  Subsection 27 (4.1) of the Act is amended by striking out "and" at the end of clause (a) and by repealing clause (b) and substituting the following:

  (b)  15 per cent of the amount received in respect of Class A shares issued within the immediately preceding eight years and within the period commencing May 7, 1996 and ending March 1, 2010;

   (c)  10 per cent of the amount received in respect of Class A shares issued within the immediately preceding eight years and within the period commencing March 2, 2010 and ending March 1, 2011; and

  (d)  5 per cent of the amount received in respect of Class A shares issued within the immediately preceding eight years and within the period commencing March 2, 2011 and ending February 29, 2012.

   6.  Subsection 27.1 (4) of the Act is amended by adding the following paragraph:

  11.  The purchaser and vendor are jointly and severally liable to the Minister,

            i.  for any amount payable but not paid under this Act by the vendor before the purchase of the assets by the purchaser, and

           ii.  for any amount that becomes payable under this Act by the vendor after the purchase of the assets by the purchaser, if the amount becomes payable as a result of any act or omission of the vendor occurring before the purchase of the assets by the purchaser.

Commencement

   7.  This Schedule comes into force on the day the Ontario Tax Plan for More Jobs and Growth Act, 2009 receives Royal Assent.

Schedule E
Condominium Act, 1998

   1.  Clause (b) of the definition of "eligible security" in subsection 115 (5) of the Condominium Act, 1998 is repealed and the following substituted:

  (b)  is issued by an institution located in Ontario insured by the Canada Deposit Insurance Corporation or the Deposit Insurance Corporation of Ontario, or

Commencement

   2.  This Schedule comes into force on the day the Ontario Tax Plan for More Jobs and Growth Act, 2009 receives Royal Assent.

Schedule F
Co-operative Corporations Act

   1.  Section 74 of the Co-operative Corporations Act is repealed and the following substituted:

Place of meetings

   74.  (1)  Unless the by-laws of a co-operative require that meetings of the members be held at a particular Ontario location, the meetings of the members of the co-operative are to be held at such place in Ontario as the board of directors stipulates.

Same

   (2)  If the articles of a co-operative so provide, the meetings of the members of the co-operative may be held at one or more places outside Ontario specified in the articles.

Meeting by electronic means

   (3)  If the by-laws of a co-operative, other than a non-profit housing co-operative, so provide, a meeting of the members of the co-operative may be held by telephonic or electronic means and a member who, through those means, votes at the meeting or establishes a communications link to the meeting is deemed for the purposes of this Act to be present at the meeting.

Same

   (4)  A meeting held under subsection (3) is deemed to be held at the place where the head office of the co-operative is located.

Definition of "telephonic or electronic means"

   (5)  For the purposes of this section and section 76,

"telephonic or electronic means" means telephone calls or messages, facsimile messages, electronic mail, transmission of data or information through automated touch-tone telephone systems, transmission of data or information through computer networks, any other similar means or any other prescribed means.

   2.  (1)  Clause 75 (1) (b) of the Act is repealed and the following substituted:

  (b)  all questions proposed for the consideration of the members at a meeting of members are to be determined by the majority of the votes cast, and the chair presiding at the meeting, other than a chair chosen under clause (d.1), has a second or casting vote in case of an equality of votes;

   (2)  Subsection 75 (1) of the Act is amended by adding the following clause:

(d.1) the president, if present at the meeting of members, may choose a non-member instead of himself or herself to be the chair presiding at the meeting;

   3.  (1)  Subsection 76 (3) of the Act is amended by striking out "under its corporate seal".

   (2)  Section 76 of the Act is amended by adding the following subsections:

Voting by electronic means

   (4)  Subject to subsection (5), the members of a co-operative shall vote in person.

Exception

   (5)  The by-laws of a co-operative, other than a non-profit housing co-operative, may provide for voting by mail or by telephonic or electronic means.

   4.  (1)  Section 87 of the Act is amended by adding at the beginning "Subject to subsection (2)".

   (2)  Section 87 of the Act is amended by adding the following subsections:

Exception

   (2)  Subject to subsection (3), the by-laws of a co-operative, other than a non-profit housing co-operative, may provide for the appointment or election of directors who are non-members or who are not directors, officers, shareholders or members of a corporate member.

Same

   (3)  The number of directors appointed or elected who are non-members or who are not directors, officers, shareholders or members of a corporate member must not exceed one-fifth of the total number of directors.

   5.  Section 91 of the Act is amended by adding the following subsection:

Directors may be acclaimed

   (2)  Despite subsection (1) and subject to the by-laws, if the number of candidates for election as directors of a co-operative at a general meeting is the same or fewer than the number to be elected at that meeting, the chair may declare the candidates to have been elected by acclamation.

   6.  Section 93 of the Act is amended by adding the following subsection:

Counting

   (2)  Directors who are non-members or who are not directors, officers, shareholders or members of a corporate member are not to be counted for the purpose of constituting a quorum.

   7.  Section 93.1 of the Act is repealed.

   8.  Section 97 of the Act is amended by adding the following subsections:

Proportion of non-members

   (1.1)  The proportion of directors on the executive committee who are non-members or who are not directors, officers, shareholders or members of a corporate member must not be greater than the proportion of directors who are members or who are directors, officers, shareholders or members of a corporate member.

.     .     .     .     .

Counting

   (4)  Directors on the executive committee who are non-members or who are not directors, officers, shareholders or members of a corporate member must not be counted for the purpose of constituting a quorum.

Commencement

   9.  This Schedule comes into force on the day the Ontario Tax Plan for More Jobs and Growth Act, 2009 receives Royal Assent.

Schedule G
Corporations Tax act

   1.  (1)  The definition of "film studio" in subsection 43.5 (19) of the Corporations Tax Act is repealed and the following substituted:

"film studio" means,

  (a)  a building in which sets are used for the purpose of making film or television productions and sound, light and human access are controlled, or

  (b)  a building in which activities are carried out directly in support of animation if the production is an animated production or contains animated segments; ("studio")

   (2)  The definition of "regional Ontario production" in subsection 43.5 (19) of the Act is amended by striking out "or" at the end of clause (a), by adding "or" at the end of clause (b) and by adding the following clause:

   (c)  for which the principal photography in Ontario consists entirely of animation, but only if no more than 15 per cent of the principal photography in Ontario is done in the Greater Toronto Area; ("production régionale ontarienne")

Commencement

   2.  This Schedule is deemed to have come into force on May 3, 2003.

Schedule H
Credit Unions and Caisses Populaires Act, 1994

   1.  Clause 39 (1) (d) of the Credit Unions and Caisses Populaires Act, 1994 is repealed and the following substituted:

  (d)  the deposits are required or governed by an Act of the Legislature or the Parliament of Canada or by a regulation made under such an Act.

   2.  Section 182 of the Act is amended by adding the following subsection:

Annual payments

   (1.1)  Payments required under subsection (1) shall be made to the Minister in accordance with the Minister's directions, with the first payment under that subsection to be made on the day specified by the Minister and to include all amounts payable to the Minister on or before that day.

Commencement

   3.  This Schedule comes into force on the day the Ontario Tax Plan for More Jobs and Growth Act, 2009 receives Royal Assent.

Schedule I
Education Act

   1.  Clause 90 (1) (b) of the Education Act is amended by striking out "receipts and expenditures of all school money" and substituting "revenues and expenses of the school board".

   2.  Clause 171.1 (4) (b) of the Act is amended by striking out "clause 241 (1) (a)" at the end and substituting "subsection 241 (1)".

   3.  Subsection 230.12 (5) of the Act is amended by striking out "clause (3) (a)" at the end and substituting "subsection (3)".

   4.  The heading "Estimates" immediately before section 230.20 and sections 230.20, 231, 232 and 233 of the Act are repealed and the following substituted:

Interpretation

Definitions

   230.20  (1)  In this Part,

"accumulated deficit" means the amount, if any, by which the total of a board's current and prior in-year deficits exceeds the total of its current and prior in-year surpluses; ("déficit accumulé")

"accumulated surplus" means the amount, if any, by which the total of a board's current and prior in-year surpluses exceeds the total of its current and prior in-year deficits; ("excédent accumulé")

"deferred revenue" means, in respect of a board, the total of,

  (a)  all amounts that the board is required to restrict under subsection 233 (3), and

  (b)  all amounts that are subject to restrictions on the school purposes for which they may be used by the board, where the restrictions may be legally enforced against the board by another body or entity; ("recettes reportées")

"in-year deficit" means the amount, if any, by which a board's expenses in a fiscal year exceed its revenues in that fiscal year; ("déficit d'exercice")

"in-year surplus" means the amount, if any, by which a board's revenues in a fiscal year exceed its expenses in that fiscal year; ("excédent d'exercice")

"operating revenue" has the meaning prescribed by the regulations. ("recettes de fonctionnement")

Regulations

   (2)  The Lieutenant Governor in Council may make regulations,

  (a)  prescribing the meaning of "operating revenue";

  (b)  prescribing revenues, expenses or other matters to be included or excluded in the determination of a board's accumulated deficit, accumulated surplus, in-year deficit or in-year surplus, and providing that the regulation applies only in respect of specified provisions of this Act.

Fiscal year

   (3)  The fiscal year of a board is the year from September 1 to August 31.

In-Year Deficits

Regulations re accounting standards

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

  (a)  prescribing accounting standards with which boards must comply in preparing their financial statements;

  (b)  phasing in or authorizing boards to phase in any changes to accounting standards to their budgets over a period of years, and governing the phase-in.

Same

   (2)  A regulation made under subsection (1) may,

  (a)  incorporate a document or publication as it may be amended from time to time; and

  (b)  apply in respect of the fiscal year in which the regulation is made, even if the regulation is made after the start of the fiscal year.

No in-year deficit

   231.  (1)  A board shall not, without the Minister's approval, have an in-year deficit for a fiscal year that is greater than the amount determined as follows:

    1.  Take the board's accumulated surplus for the preceding fiscal year.  If the board does not have an accumulated surplus, the number determined under this paragraph is deemed to be zero.

    2.  Take 1 per cent of the board's operating revenue for the fiscal year.

    3.  Take the lesser of the amounts determined under paragraphs 1 and 2.

Exception

   (2)  Despite subsection (1), a board may have an in-year deficit that is greater than the amount determined under that subsection if the in-year deficit is permitted as part of a financial recovery plan under Division C.1 or if the board is subject to an order under subsection 230.3 (2) or 257.31 (2) or (3).

Minister's approval

   (3)  In deciding whether to grant his or her approval for a fiscal year for the purpose of subsection (1), the Minister shall consider,

  (a)  whether the in-year deficit is structural or will occur only one time;

  (b)  where the amount determined under paragraph 2 of subsection (1) is less than the amount determined under paragraph 1 of that subsection, whether the in-year deficit is less than 50 per cent of the amount determined under paragraph 1 of that subsection; and

   (c)  the extent to which the in-year deficit is the result of circumstances beyond the board's control.

Estimates

Board shall adopt estimates

   232.  (1)  Every board, before the beginning of each fiscal year and in time to comply with the date set under clause (6) (c), shall prepare and adopt estimates of its revenues and expenses for the fiscal year.

Same

   (2)  Where final financial statements are not available, the calculation of any amount for the purposes of this Act or the regulations shall be based on the most recent data available.

Balanced budget

   (3)  A board shall not adopt estimates that indicate the board would have an in-year deficit for the fiscal year.

Exception

   (4)  Despite subsection (3), a board may adopt estimates for a fiscal year that indicate the board would have an in-year deficit for the fiscal year if,

  (a)  the estimated in-year deficit would be equal to or less than the amount determined under subsection 231 (1);

  (b)  the Minister grants his or her approval for the estimated in-year deficit to be greater than the amount determined under subsection 231 (1) by the amount specified by the Minister;

   (c)  an in-year deficit is permitted as part of a financial recovery plan under Division C.1; or

  (d)  the board is subject to an order under subsection 230.3 (2) or 257.31 (2) or (3).

Minister's approval

   (5)  In deciding whether to grant his or her approval for a fiscal year for the purpose of clause (4) (b), the Minister shall consider the factors set out in subsection 231 (3).

Minister's powers

   (6)  The Minister may,

  (a)  issue guidelines respecting the form and content of estimates required under this section;

  (b)  require boards to comply with the guidelines; and

   (c)  require boards to submit a copy of the estimates to the Ministry, by a date specified for the purpose by the Minister. 

Same

   (7)  Part III (Regulations) of the Legislation Act, 2006 does not apply to anything done by the Minister under subsection (6).

Restrictions

   233.  (1)  A board may by resolution restrict the use of all or part of its accumulated surplus for any purpose for which it has authority to incur expenses.

Same

   (2)  Amounts restricted for a purpose under subsection (1) shall not be expended, pledged or applied to any other purpose unless the board by resolution provides for the expenditure, pledge or application.

Regulations re restrictions

   (3)  The Minister may make regulations requiring a board to restrict, in the manner and to the extent specified in the regulations, the use of any revenue for the purposes specified in the regulations.

Exemption

   (4)  Amounts restricted for a purpose under a provision of a regulation made under subsection (3) shall not be expended, pledged or applied to any other purpose unless the Minister, in writing and subject to such conditions as may be specified, exempts the board from the provision and provides that the board may use the revenue for a specified purpose.

Money to be paid into bank account

   (5)  A board may consolidate deferred revenue and any accumulated surplus restricted under subsection (1) or (3) if the consolidated account is kept in such a way that the purposes for which the amounts are restricted remain distinct and the true state of the amount attributable to each purpose can be determined.

Interest

   (6)  Interest or other earnings on a portion of deferred revenue restricted for a purpose shall be credited only to that portion.

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

Restrictions following strike, lock-out

   233.1  The Minister, subject to the approval of the Lieutenant Governor in Council, may make regulations providing for the calculation of expenses of a board that are not incurred in a fiscal year by reason of a strike or lock-out affecting the operations of the board.

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

Transition

   233.2  (1)  All amounts held or required to be held in reserve funds by section 232 or 233 of this Act, as it read immediately before the day section 4 of Schedule I to the Ontario Tax Plan for More Jobs and Growth Act, 2009 came into force, are deemed to be amounts restricted under subsection 233 (3) for the same purposes for which the amounts were held in reserve funds.

Same

   (2)  All amounts held in education development charge reserve funds authorized or continued under this Act, as it read immediately before the day section 4 of Schedule I to the Ontario Tax Plan for More Jobs and Growth Act, 2009 came into force, are deemed to be amounts restricted under subsection 233 (3) for the same purposes for which the amounts were held in reserve funds.

Same

   (3)  All amounts held in reserve funds of boards authorized or continued under this Act, as it read immediately before the day section 4 of Schedule I to the Ontario Tax Plan for More Jobs and Growth Act, 2009 came into force, other than amounts held in a reserve fund described in subsection (1) or (2), are deemed to be amounts restricted under subsection 233 (1) for the same purposes for which the amounts were held in reserve funds.

Restrictions

   (4)  Any restrictions that, immediately before the day section 4 of Schedule I to the Ontario Tax Plan for More Jobs and Growth Act, 2009 came into force, applied to amounts held in reserve funds described in subsection (1), (2) or (3) continue to apply to the amounts on and after that day.

   7.  (1)  Subsections 234 (1.1) and (1.2) of the Act are repealed and the following substituted:

Same

   (1.1)  A regulation made under subsection (1) may set out rules respecting the number of instalments in which payments of legislative grants shall be paid to boards, the dates on which the payments shall be made and the amounts of the payments as a percentage of the total amount payable to the boards.

   (2)  Clause 234 (4) (c) of the Act is repealed and the following substituted:

   (c)  authorize the Minister to,

           (i)  withhold all or part of a legislative grant or delay payment of an instalment of a legislative grant if a condition of the legislative grant is not satisfied, or

          (ii)  require that all or part of a legislative grant be repaid if a condition of the grant is not satisfied.

   (3)  Subsection 234 (8) of the Act is repealed and the following substituted:

Payment schedule

   (8)  The Minister may, in accordance with any rules referred to in subsection (1.1), prescribe the number of instalments in which payments of legislative grants shall be paid to boards, the dates on which the payments shall be made and the amounts of the payments as a percentage of the total amount estimated by the Minister to be payable to the boards.

   8.  Subsection 240 (2) of the Act is amended by striking out "clause 241 (1) (a)" and substituting "subsection 241 (1)".

   9.  (1)  Subsections 241 (1), (2), (3), (4) and (5) of the Act are repealed and the following substituted:

Investment powers

   (1)  A board may, subject to any rules prescribed under subsection (6), invest in securities prescribed under subsection (6) any money of the board that is not immediately required by the board.

   (2)  Clause 241 (6) (a) of the Act is amended by striking out "clause (1) (a)" at the end and substituting "subsection (1)".

   (3)  Clause 241 (6) (b) of the Act is amended by striking out "clause (1) (a)" at the end and substituting "subsection (1)".

   10.  (1)  Subsection 243 (2) of the Act is amended by striking out "the current revenue" and substituting "cash".

   (2)  Subsection 243 (3) of the Act is amended by striking out "estimated revenues of the board, as set out in the estimates adopted for the fiscal year" at the end and substituting "estimated current revenues of the board".

   (3)  Subsections 243 (5) and (6) of the Act are repealed and the following substituted:

Exception re certain boards

   (5)  A board may borrow more than the amount authorized to be borrowed under the other provisions of this section if, at the time of the borrowing,

  (a)  the board is subject to a financial recovery plan approved by the Minister under subsection 257.29.1 (2), and the plan permits the borrowing; or

  (b)  the administration of the affairs of the board has been vested in the Ministry by an order under subsection 230.3 (2) or 257.31 (2) or (3), and the Minister approves the borrowing.

   11.  Part IX of the Act is amended by adding the following Division:

DIVISION C.1
FINANCIAL RECOVERY PLANS

Financial recovery plan

   257.29.1  (1)  The Minister may order a board to adopt by resolution a financial recovery plan and submit it to the Minister within the time the Minister specifies if,

  (a)  the board's financial statements for a fiscal year show that the board had an in-year deficit contrary to section 231 or an accumulated deficit; or

  (b)  the Minister has reasonable grounds to believe that the board's financial statements for a fiscal year will show that the board had an in-year deficit contrary to section 231 or an accumulated deficit.

Minister's approval

   (2)  The Minister may, with respect to a financial recovery plan submitted to him or her under subsection (1),

  (a)  approve the plan, subject to such amendments as the Minister determines are necessary;

  (b)  reject the plan and require the board to submit a new plan addressing such matters as the Minister specifies; or

   (c)  reject the plan and do anything else he or she is authorized to do under Division D or Part VIII.

Compliance with financial recovery plan

   (3)  The board shall comply with the provisions of a financial recovery plan approved under subsection (2) until the board's financial statements for a fiscal year show that in that year it had neither an accumulated deficit nor an in-year deficit.

New financial recovery plans

   (4)  Even after a financial recovery plan has been approved under subsection (2), the Minister may require the board to submit another such plan if,

  (a)  the Minister determines that the board has not complied with the provisions of the financial recovery plan that was approved or with a regulation respecting financial recovery plans; or

  (b)  the Minister is of the opinion that a new financial recovery plan is required due to circumstances arising since the financial recovery plan was approved.

Regulations

   (5)  The Minister may make regulations governing financial recovery plans, including regulations governing the duration of plans and setting out goals or targets that the board must meet while subject to a financial recovery plan.

   12.  (1)  Subsection 257.30 (1) of the Act is amended by adding the following clauses:

(a.1) the board was required under subsection 257.29.1 (1), (2) or (4) to submit a financial recovery plan to the Minister within the time specified by the Minister and the board failed to do so;

(a.2) the board was required under subsection 257.29.1 (3) to comply with a financial recovery plan and the board failed to do so;

(a.3) the board was required to comply with a regulation made under subsection 257.29.1 (5) and the board failed to do so;

   (2)  Section 257.30 of the Act is amended by adding the following subsection:

Same

   (1.1)  The Minister may direct an investigation under subsection (1) whether or not he or she has ordered the board to submit a financial recovery plan under section 257.29.1 or considered any such plan that has been submitted.

   13.  (1)  Clause 257.34 (2) (g) of the Act is repealed and the following substituted:

  (g)  the creation and setting aside of sinking funds, retirement funds and funds prescribed under clause 247 (3) (e) and the restriction of money out of any portion of the revenues of the board for meeting obligations relating to all or any part of the board's indebtedness;

   (2)  Clause 257.34 (2) (h) of the Act is amended by striking out "funds prescribed under clause 247 (3) (e) reserves" and substituting "funds prescribed under clause 247 (3) (e), deferred revenues".

   14.  Subsection 257.45 (5) of the Act is amended by striking out "clause (3) (a)" at the end and substituting "subsection (3)".

   15.  (1)  Subsection 257.51 (1) of the Act is amended by adding "or Division C.1" at the end.

   (2)  Subsection 257.51 (2) of the Act is amended by adding "or Division C.1" at the end.

   16.  (1)  Subsection 257.52 (1) of the Act is amended by adding "or Division C.1" after "this Division" in the portion before clause (a).

   (2)  Subsection 257.52 (2) of the Act is amended by adding "and Division C.1" after "this Division" in the portion before clause (a).

   17.  (1)  Subsection 257.53 (1) of the Act is amended by adding the following definition:

"education development charge account" means an account established under subsection 257.82 (1); ("compte de redevances d'aménagement scolaires")

   (2)  The definition of "education development charge reserve fund" in subsection 257.53 (1) of the Act is repealed.

   18.  Subsection 257.82 (1) of the Act is amended by striking out "reserve funds" and substituting "education development charge accounts".

   19.  (1)  Subsection 257.98 (1) of the Act is amended by striking out "reserve funds" and substituting "accounts".

   (2)  Subsection 257.98 (2) of the Act is amended by striking out "reserve funds" wherever it appears and substituting in each case "accounts".

   20.  Clause 257.101 (1) (k) of the Act is repealed and the following substituted:

   (k)  governing education development charge accounts, including,

           (i)  governing the establishment and administration of such accounts,

          (ii)  the use of money from such accounts,

         (iii)  requiring the approval of the Minister in respect of the manner in which or the rate at which the money is withdrawn from such accounts;

   21.  The Act is amended by striking out "reserve fund" wherever it appears in the following provisions and substituting in each case "account":

    1.  Subsection 257.69 (4).

    2.  Subsection 257.82 (2).

    3.  Subsection 257.90 (3).

    4.  Section 257.99.

Amendment to the Municipal Act, 2001

   22.  Subsection 417 (1) of the Municipal Act, 2001 is amended by striking out "as defined in the Municipal Affairs Act" and substituting "conservation authority".

Commencement

   23.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Ontario Tax Plan for More Jobs and Growth Act, 2009 receives Royal Assent.

Same

   (2)  Sections 1, 2, 4, 6 to 13 and 15 to 22 come into force on September 1, 2010.

Schedule J
Financial Administration Act

   1.  Section 1 of the Financial Administration Act is amended by adding the following subsection:

Interpretation, appropriation for a fiscal year

   (2)  A reference in this Act to an appropriation for or relating to a fiscal year is a reference to an appropriation that authorizes an expenditure for only that fiscal year.

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

Part 0.1
Treasury Board and Ministry of Finance

Treasury Board

Treasury Board continued

   1.0.1  The committee of the Executive Council known in English as the Treasury Board and in French as Conseil du Trésor is continued.

Members

   1.0.2  (1)  The members of the Board are the Minister of Finance, the Chair of the Management Board of Cabinet and not fewer than four or more than eight other members appointed by the Lieutenant Governor in Council from among the members of the Executive Council.

Alternative members

   (2)  The Lieutenant Governor in Council may appoint from among the members of the Executive Council alternative members of the Board to act in the absence of Board members other than the Minister of Finance or the Chair of the Management Board of Cabinet.

Quorum

   (3)  Three members constitute a quorum of the Board.

Chair and vice-chair

   1.0.3  (1)  The Lieutenant Governor in Council may designate the chair and vice-chair of the Board.

Chair's duties

   (2)  The chair shall preside at Board meetings, is responsible for its operation and administration and, between its meetings, shall exercise or perform such of its powers, duties and functions as the Board may authorize.

Absence of chair or vice-chair

   (3)  When the chair is absent from a meeting of the Board, the vice-chair shall preside, and when both are absent, the members present at the meeting shall elect a chair for the meeting.

Procedure

   1.0.4  (1)  The Board may determine its rules and methods of procedure and shall keep records of its decisions and proceedings.

Secretary of the Board

   (2)  Subject to the direction of the chair of the Board, the Deputy Minister of Finance or such other person referred to in paragraph 1 or 3 of subsection 2 (2) of the Public Service of Ontario Act, 2006 as is designated by order of the Lieutenant Governor in Council shall hold the office of Secretary of the Board and is responsible for the operation of the Board in accordance with its policies and procedures.

Same

   (3)  If there is no Secretary of the Board or if the Secretary is absent or unable to act, the Secretary of the Management Board of Cabinet has the powers and shall perform the duties of the Secretary of the Board.

Board staff

   (4)  The Treasury Board Office of the Ministry of Finance shall provide the staff required for the operation and administration of the Board.

Delegation

   (5)  The Board may delegate to any member of the Executive Council or to any public servant employed under Part III of the Public Service of Ontario Act, 2006 any power, duty or function of the Board, subject to such limitations and requirements as the Board may specify.

Powers and duties

   1.0.5  (1)  The powers and duties of the Board are,

  (a)  to assess the adequacy of plans for the implementation of programs approved or provided for by the Legislature;

  (b)  to direct the preparation and review of forecasts, estimates and analyses of short term and long term expenditures and expenditure commitments and other data pertaining to authorized or proposed programs of any ministry;

   (c)  to direct, and establish policies for, the preparation, form and content of estimates and supplementary estimates submitted to the Legislature for any ministry;

  (d)  to determine fees or charges for the provision of services by any ministry or for the use of the facilities of a ministry and to require the ministry to take such action as is necessary to implement the determination;

  (e)  to review, evaluate and approve new and existing programs of any ministry and determine priorities with respect to them;

    (f)  to control expenditures of public money within the amounts appropriated or otherwise provided by the Legislature; and

  (g)  to carry out or perform any directions or responsibilities given to the Board by the Executive Council.

Direction by Executive Council

   (2)  The Board is subject to the direction of the Executive Council, which may amend or revoke any action of the Board.

Directives

   (3)  The Board may issue such directives as it considers necessary in the performance of its duties.

Transitional

   (4)  Each directive issued under the Treasury Board Act, 1991 in effect on the day this section comes into force is deemed to have been made under the authority of subsection (3).

Access to ministry information, etc.

   (5)  A ministry shall give the Board access to, and copies of, any account, return, statement, document, report or information in the possession or control of the ministry when the Board requires the account, statement, document, report or information for the performance of its duties.

Board may require right to consent to fees, etc.

   1.0.6  (1)  The Board may require a minister of the Crown to obtain the consent of the Board before the minister exercises his or her discretion to,

  (a)  establish, set, charge, require the payment of, collect or otherwise impose a new fee;

  (b)  make a regulation prescribing the amount of a fee, make an order setting out the amount of a fee or otherwise determine the amount of a fee;

   (c)  waive the payment of a fee or refund a fee that is otherwise required to be paid;

  (d)  change the amount of a fee; or

  (e)  approve or authorize the exercise of discretion by another person or entity to do anything described in clause (a), (b), (c) or (d) with respect to a fee payable into the Consolidated Revenue Fund.

Definition

   (2)  In this section,

"fee" means a fee or other charge the amount of which,

  (a)  is not specified in an Act or in a regulation made by the Lieutenant Governor in Council, and

  (b)  is not determined using a formula or method set out in an Act or in a regulation made by the Lieutenant Governor in Council.

Special warrants

   1.0.7  (1)  If the Legislature is not in session and a matter arises that requires an expenditure that has not been authorized by an appropriation or that exceeds the amount authorized by an appropriation, the Lieutenant Governor in Council, on receiving the report of the Board estimating the amount of the expenditure or additional expenditure, may order a special warrant to be prepared and signed by the Lieutenant Governor authorizing an expenditure in the amount estimated to be required, and the expenditure may be paid or recognized as specified in the special warrant.

Where appropriation exists

   (2)  Subject to subsection (4), if a special warrant is issued with respect to an expenditure that is in addition to an expenditure that has been authorized by an appropriation, the amount of the additional expenditure authorized by the special warrant shall be added to and deemed to be part of the expenditure authorized by the appropriation for the fiscal year in which the special warrant is issued.

Where no appropriation exists

   (3)  Subject to subsection (4), if a special warrant is issued with respect to an expenditure and no expenditure in respect of the same item has been authorized by an appropriation, the expenditure authorized by the special warrant is deemed to be an expenditure authorized by an appropriation for the fiscal year in which the special warrant is issued.

Warrant may apply to next fiscal year

   (4)  A special warrant issued in a fiscal year may provide that it applies with respect to the next fiscal year, in which case the expenditure to which it relates is deemed to be an expenditure authorized by an appropriation for that next fiscal year.

Board orders, supplementary expenditures

   1.0.8  (1)  Despite section 11.2, the Board may by order authorize supplementary expenditures in addition to the expenditures authorized by an appropriation for a fiscal year if the amount of the expenditures authorized by the appropriation is insufficient to carry out the intended purpose for which they were authorized.

Report required

   (2)  An order may be made under subsection (1) only if the Board has received from the ministry responsible for the program to which the proposed supplementary expenditures relate, or from a person prescribed by the regulations made under this Act, a report in writing setting out the need for further expenditures and the reason why the amount that was authorized by the appropriation is insufficient without the supplementary expenditures.

Board orders in favour of contingency fund

   (3)  Despite section 11.2, the Board may by order authorize supplementary expenditures for a reserve for future contingencies authorized by an appropriation, if the Board considers it advisable to do so.

Expenditures to be offset by reduction on other appropriation

   (4)  An order under subsection (1) or (3) shall provide that the supplementary expenditures be offset by reducing the amount of other expenditures authorized by an appropriation for the same fiscal year if not all of those authorized expenditures have been paid or recognized and, in the opinion of the Board, are unlikely to be paid or recognized for the fiscal year.

Timing

   (5)  An order under subsection (1) or (3) may be made at any time before the books of the Government of Ontario for the fiscal year are closed.

Post fiscal year-end Board orders to be reported in the Public Accounts

   (6)  If the Board issues an order under this section at any time after the end of a fiscal year to authorize a supplementary expenditure for that fiscal year because the amount authorized by an appropriation is no longer sufficient due to an adjustment being made that arose out of the audit of the Public Accounts for that fiscal year, the ministry responsible for the program in respect of which the supplementary expenditure is authorized shall prepare a statement setting out the circumstances that gave rise to the need for the order, and the statement shall be included in the Public Accounts for that fiscal year.

Exception

   (7)  An amount authorized under any Act to be expended for payments under the Investing in Ontario Act, 2008 may not be reduced as an offset under subsection (4).

Expenditure transfer

   1.0.9  (1)  When powers and duties are assigned and transferred from one minister of the Crown to another, the Board may transfer to the ministry administered by the minister to whom the powers and duties are assigned and transferred the appropriate sums in the votes and items of the estimates and supplementary estimates for the expenditures in the fiscal year for the exercise and performance of those powers and duties.

Certificate of Board

   (2)  The Board shall issue to the ministry of the minister to whom powers and duties are assigned and transferred a certificate stating the amount of the sums transferred under subsection (1) and such other information as the Board considers necessary.

Expenditures authorized

   (3)  A certificate is effective from the date stated in it and transfers to the ministry to which it is issued the authority for the portion of the fiscal year beginning with that date to make the expenditure of the sums transferred.

Regulations

   1.0.10  Subject to the approval of the Lieutenant Governor in Council, the Board may make regulations,

  (a)  respecting the accounting for, and the collection, management and administration of public money;

  (b)  respecting the retention and disposal of records concerning the receipt or disbursement of public money;

   (c)  providing that a board, commission, authority, corporation or any other agency of the Government of Ontario does not fall within the definition of "ministry" set out in section 1;

  (d)  designating the Speaker of the Assembly, the chair of the Board of Internal Economy established under the Legislative Assembly Act or any member of the Executive Council to represent, for the purposes of sections 1.0.7 and 1.0.8, any office or body reporting directly to the Assembly.

Ministry of Finance

Ministry of Finance continued

   1.0.11  The Ministry known in English as the Ministry of Finance and in French as ministère des Finances is continued.

Minister of Finance to have charge

   1.0.12  The Minister of Finance shall preside over and have charge of the Ministry of Finance and has power to act for and on behalf of the Ministry of Finance.

Seal

   1.0.13  (1)  The Lieutenant Governor in Council may authorize a seal for the Minister of Finance and prescribe its use on documents.

Mechanical reproduction of seal

   (2)  The seal may be reproduced by engraving, lithographing, printing or any other method of mechanical reproduction, and when so reproduced has the same force and effect as if manually affixed.

Duties and powers of Minister of Finance

   1.0.14  (1)  The Minister of Finance shall direct and control the Ministry of Finance, recommend to the Executive Council finance, economic, accounting and taxation policy, supervise, direct and control all finance, economic, statistical and accounting functions, manage the Consolidated Revenue Fund and, except as otherwise provided in any other Act, manage all public money.

Administration of Acts

   (2)  The Minister of Finance is responsible for the administration of this Act and the Acts that are assigned to him or her by the Legislature or by the Lieutenant Governor in Council under the Executive Council Act.

Directives, policies and guidelines

   (3)  The Minister of Finance may issue such directives, policies and guidelines as he or she considers necessary in the performance of his or her duties or in the exercise of his or her powers under this or any other Act.

Transitional

   (4)  Each directive and guideline issued under the Ministry of Treasury and Economics Act in effect on the day this section comes into force is deemed to have been made under the authority of subsection (3).

References to Treasurer of Ontario, etc.

   (5)  A reference to the Treasurer of Ontario or to the Treasurer of Ontario and Minister of Economics in any Act or regulation is deemed to be a reference to the Minister of Finance, and a reference to the Ministry of Trea­sury and Economics in any Act or regulation is deemed to be a reference to the Ministry of Finance.

Deputy Minister of Finance

   1.0.15  The Lieutenant Governor in Council shall appoint a Deputy Minister of Finance who shall be the deputy head of the Ministry of Finance.

Delegation of powers

   1.0.16  (1)  Any power or duty conferred or imposed on the Minister of Finance under this or any other Act may be delegated by the Minister of Finance to the Deputy Minister of Finance or to a public servant employed under Part III of the Public Service of Ontario Act, 2006 who works in or provides services to the Ministry of Finance and, when purporting to exercise a delegated power or duty, the delegate shall be presumed conclusively to act in accordance with the delegation.

Exception

   (2)  The Minister of Finance may not delegate his or her powers under subsection 5.1 (3) or his or her authority to make regulations under any Act.

Delegation subject to conditions

   (3)  A delegation under subsection (1) shall be in writing and may be subject to such limitations, conditions and requirements as are set out in it.

Subdelegation

   (4)  In a delegation under subsection (1), the Minister of Finance may authorize a person to whom a power or duty is delegated to delegate to others the exercise of the delegated power or duty, subject to such limitations, conditions and requirements as the person may impose.

Deeds and contracts

   (5)  Despite section 6 of the Executive Council Act, a deed or contract signed by a person empowered to do so under a delegation or subdelegation made under this section has the same effect as if signed by the Minister of Finance.

Facsimile signature

   (6)  The Minister of Finance or the Deputy Minister of Finance may authorize the use of a facsimile of his or her signature on any document except an affidavit or statutory declaration, and the facsimile signature is deemed to be the signature of the Minister or Deputy Minister, as the case may be.

Transitional

   (7)  Every delegation made under subsection 64 (1) of the Capital Investment Plan Act, 1993 in effect on the day this section comes into force is deemed to have been made under the authority of this section.

Protection from personal liability

   1.0.17  (1)  No action or other proceeding for damages shall be commenced against the Deputy Minister of Finance or any public servant employed under Part III of the Public Service of Ontario Act, 2006 who works in the Ministry of Finance for any act done in good faith in the performance or intended performance of his or her duty or for any alleged neglect or default in good faith in the performance of his or her duty.

Same, delegates

   (2)  No action or other proceeding for damages shall be commenced against any public servant employed under Part III of the Public Service of Ontario Act, 2006 who provides services to the Ministry of Finance for any act done in good faith in the performance or intended performance of his or her duty under a delegation or subdelegation of a power or duty of the Minister of Finance or for any alleged neglect or default in good faith in the performance of his or her duty.

Crown liability

   (3)  Despite subsections 5 (2) and (4) of the Proceedings Against the Crown Act, subsections (1) and (2) do not relieve the Crown of any liability to which it would otherwise be subject in respect of a tort committed by the Deputy Minister of Finance or a public servant employed under Part III of the Public Service of Ontario Act, 2006 who works in or provides services to the Ministry of Finance.

Expenditures

   1.0.18  Except as otherwise provided in this or another Act, the expenditures of the Ministry of Finance shall be paid out of money appropriated for that purpose by the Legislature.

Grants

   1.0.19  (1)  The Minister of Finance may make a grant to an organization, agency or other entity for the purpose of improving the process of managing the flow of goods and services, information and funds within the broader public sector.

Same

   (2)  For the purposes of this section, the broader public sector consists of,

  (a)  every district school board as defined in subsection 1 (1) of the Education Act;

  (b)  every person or entity that is a health service provider for the purposes of the Local Health System Integration Act, 2006;

   (c)  every college of applied arts and technology established under the Ontario Colleges of Applied Arts and Technology Act, 2002;

  (d)  every university in Ontario, including its affiliated and federated colleges, that receives operating grants from the Government of Ontario;

  (e)  every municipality as defined in section 1 of the Municipal Act, 2001; and

    (f)  every children's aid society that is designated in accordance with the Child and Family Services Act.

Financial Management

Financial responsibility

   1.0.20  The deputy minister of each ministry of the Government of Ontario and the chief executive officer of, or person holding a similar position with respect to, each board, commission, authority, corporation and agency of the Government of Ontario is responsible for ensuring the proper conduct of the financial business of the relevant ministry, board, commission, authority, corporation and agency in accordance with such directives, policies and guidelines as are made or issued under this Act.

Payment may be withheld

   1.0.21  (1)  The Minister of Finance may withhold a payment out of the Consolidated Revenue Fund if he or she has reason to believe that there is no authority for the payment.

Reference to Treasury Board

   (2)  If a payment is withheld under subsection (1), the Minister of Finance or the minister who requisitioned the payment that has been withheld may refer the matter to Treasury Board for determination.

Payment for special cases

   1.0.22  (1)  The certificate or order of the Attorney General or Deputy Attorney General that a sum of money is required to be paid out of the Consolidated Revenue Fund on account of the investigation, detection or punishment of any offence against the laws of Ontario or of Canada, or on account of special services or disbursements in connection with inquests, or any purpose connected with the administration of justice in either civil or criminal matters, is sufficient authority for the issuing of a cheque by the Minister of Finance for the amount named in the certificate or order, and the officer or other person to whom the cheque is issued shall account to the Attorney General for the proper disbursement of the amount received by the officer or other person.

Certificate of Attorney General or Deputy Attorney General

   (2)  The certificate of the Attorney General or Deputy Attorney General that any money received by any officer or other person under this section has been duly accounted for is final and conclusive and the account shall not be subject to any further examination.

Estimates

   1.0.23  All estimates of expenditures and supplementary estimates of expenditures submitted to the Legislature shall be for expenditures to be incurred or recognized by the Crown during the fiscal year.

Expenditures authorized by the Assembly

   1.0.24  Despite any provision of this Act, if the Assembly has concurred in one or more reports of the Standing Committee on Estimates recommending the passing of estimates of expenditures and supplementary estimates of expenditures of the ministries and legislative offices that were chosen for review by the Standing Committee on Estimates, the Lieutenant Governor in Council may authorize the incurring of any expenditure in a report for which concurrence is given or is deemed, under the Standing Orders, to be given.

Provision of information to the Minister of Finance

   1.0.25  (1)  The following entities shall provide to the Minister of Finance, whenever requested to do so by the Minister of Finance and on or before the day specified by the Minister, such information regarding their powers, duties, activities, organization, financial transactions and methods of business as the Minister of Finance requires:

    1.  Every ministry of the Government of Ontario.

    2.  Every Crown agency.

    3.  Every other entity whose financial statements are included in the consolidated financial statements set out in the Public Accounts of the Province of Ontario.

    4.  Every other entity the financial obligations of which have been guaranteed by a ministry of the Government of Ontario or a Crown agency.

Same, pension plans sponsored or co-sponsored by Province

   (2)  Every administrator of a pension plan that is sponsored or co-sponsored by the Province of Ontario, including a Crown agency, or by an entity described in paragraph 3 of subsection (1) shall provide to the Minister of Finance, whenever requested to do so by the Minister of Finance and on or before the day specified by the Minister of Finance, such information regarding the pension plan and its assets as the Minister of Finance requires, including, but not limited to,

  (a)  information required to calculate in accordance with generally accepted accounting principles the pension expense and liability set out in the Public Accounts;

  (b)  actuarial valuations of the pension plan on a financial statement basis;

   (c)  asset allocations of the pension fund;

  (d)  summaries of membership data; and

  (e)  the investment policies of the pension plan.

Access

   (3)  Every ministry of the Government of Ontario and every Crown agency shall,

  (a)  provide access to the Minister of Finance at all reasonable times to all books, accounts, financial records, reports, files and other papers, things or property belonging to or in use by the ministry or Crown agency; and

  (b)  afford every facility to the Minister of Finance to verify transactions with the balances or securities held by depositaries, fiscal agents or custodians.

Oath of secrecy

   (4)  Every person who is to examine the accounts or inquire into the affairs of any ministry of the Government of Ontario, Crown agency or entity described in paragraph 3 or 4 of subsection (1) shall be required to comply with any security requirements applicable to, and to take any oath of secrecy required to be taken by, persons employed in that ministry, agency or entity.

Preparation of Public Accounts

   1.0.26  (1)  The Public Accounts for each fiscal year shall be prepared under the direction of the Minister of Finance and shall include,

  (a)  the annual report of the Government of Ontario for the fiscal year;

  (b)  the summary financial statements of the Government of Ontario for the fiscal year;

   (c)  the report of the Auditor General concerning his or her examination of the summary financial statements; and

  (d)  subject to subsection (4), any other information that, under another Act of the Legislature, is required to be included in the Public Accounts.

Expenditures under the Investing in Ontario Act, 2008

   (2)  An expenditure incurred by the Government of Ontario in respect of a fiscal year under the Investing in Ontario Act, 2008 shall be recorded as an expense of the Government of Ontario for that fiscal year in the summary financial statements set out in the Public Accounts for that fiscal year.

Additional information

   (3)  The Public Accounts may include such other information as the Minister of Finance considers necessary.

Information required under other Acts

   (4)  If, under another Act of the Legislature, information is required to be included in the Public Accounts for a fiscal year, that requirement is deemed to be met if the information is included in the financial information supplementary to the Public Accounts that is laid before the Assembly in accordance with subsection (6).

Public Accounts to be submitted and laid before the Assembly

   (5)  Except in extraordinary circumstances, the Minister of Finance shall submit the Public Accounts for each fiscal year to the Lieutenant Governor in Council on or before the 180th day after the end of the fiscal year and the Lieutenant Governor in Council shall,

  (a)  lay the Public Accounts before the Assembly, if the Assembly is in session when the Public Accounts are ready to be laid before the Assembly; or

  (b)  make the Public Accounts public, if the Assembly is not in session when the Public Accounts are ready to be laid before the Assembly, and lay the Public Accounts before the Assembly on or before the 10th day of the next session.

Supplementary financial information

   (6)  Except in extraordinary circumstances, the Minister of Finance may submit to the Lieutenant Governor in Council, on or before the 240th day after the end of a fiscal year, any financial information supplementary to the Public Accounts for the fiscal year, and the Lieutenant Governor in Council shall lay the information before the Assembly if it is in session or on or before the 10th day of the next session if the Assembly is not in session.

Minister of Finance may make adjustments after end of fiscal year

   (7)  Despite any provision of this or another Act of the Legislature, the Minister of Finance may, after the end of a fiscal year, make any adjustments to the Public Accounts for the fiscal year that in his or her opinion are necessary to reflect fairly the financial position of the Government of Ontario.

Disclosure in Public Accounts not breach of any agreement

   (8)  A disclosure of information in the Public Accounts, or in any financial information supplemental to the Public Accounts, that is made in accordance with the accounting policies of the Government of Ontario, as set out in the Public Accounts, is deemed not to contravene the provisions of any agreement made before or after this subsection comes into force that purports to restrict or prohibit the disclosure of information.

Closing books for fiscal year

   (9)  The Minister of Finance may determine when the books of the Government of Ontario for a fiscal year are closed.

   3.  (1)  The French version of subsection 1.1 (1) of the Act is amended by striking out "comptabilisées" and substituting "inscrites".

   (2)  The French version of subsection 1.1 (2) of the Act is amended,

  (a)  by striking out "comptabilisées dans le Fonds" and substituting "inscrites au Fonds"; and

  (b)  by striking out "elles sont comptabilisées" and substituting "elles sont inscrites".

   4.  (1)  This section applies only if Bill 212 (Good Government Act, 2009), introduced on October 27, 2009, receives Royal Assent.

   (2)  References in this section to provisions of Bill 212 are references to those provisions as they were numbered in the first reading version of the Bill.

   (3)  On the later of the day this section comes into force and the day section 1 of Schedule 12 to Bill 212 comes into force, section 2 of the Act is amended by adding the following subsections:

Application of subs. (1.2)

   (1.1)  Subsection (1.2) applies to every corporation,

  (a)  that is constituted by a regulation made under section 5 of the Development Corporations Act on or after the day section 1 of Schedule 12 to the Good Government Act, 2009 comes into force; and

  (b)  that is not a development corporation.

Funding of certain corporations constituted under the Development Corporations Act

   (1.2)  The assets and revenues of a corporation to which this subsection applies, including all proceeds from borrowing but not including any transfer payments from the Crown, shall be paid into the Consolidated Revenue Fund.

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

Remission of amounts owing to or recoverable by the Crown

   5.1  (1)  In this section,

"other debt" means an amount owing to Her Majesty in right of Ontario other than a tax, fee, penalty or recoverable grant; ("autre dette")

"penalty" includes any forfeiture or pecuniary penalty imposed or authorized to be imposed by any Act of the Legislature for any contravention of the laws relating to the collection of revenue or to the management of any public work producing tolls or revenue, even if part of the forfeiture or penalty is payable to another person; ("pénalité")

"recoverable grant" means a grant, an amount in excess of a grant, an increment, an amount in excess of an increment, a monthly benefit, an amount in excess of a monthly benefit, a tax credit and interest that is required to be paid or repaid by the recipient to Her Majesty under any Act; ("allocation recouvrable")

"tax" includes any tax, interest, impost or toll payable to Her Majesty in right of Ontario, imposed or authorized to be imposed by any Act of the Legislature. ("taxes")

Authority to remit

   (2)  Despite any other Act, the Lieutenant Governor in Council, on the recommendation of the Minister of Finance, may remit any tax, fee, penalty, recoverable grant or other debt if the Lieutenant Governor in Council considers it to be in the public interest to do so.

Same

   (3)  Despite any other Act, the Minister of Finance may remit any tax, fee or penalty that is $10,000 or less if the Minister considers it to be in the public interest to do so.

Same

   (4)  A remission under this section may be total or partial, conditional or unconditional, and may be granted,

  (a)  before, after or pending any suit or proceeding for the recovery of the tax, fee, penalty, recoverable grant or other debt in respect of which it is granted;

  (b)  before or after any payment of it has been made or enforced by process or execution; or

   (c)  in any particular case or a class of cases and before the liability to pay it or repay it arises.

Form of remission

   (5)  A remission under this section may be granted,

  (a)  by forbearing to institute a suit or proceeding for the payment of the tax, fee, penalty or other debt, or for the repayment of the recoverable grant, in respect of which the remission is granted;

  (b)  by delaying, staying or discontinuing any suit or proceeding already instituted;

   (c)  by forbearing to enforce any judgment or by staying or abandoning any execution or process upon any judgment;

  (d)  by the entry of satisfaction upon any judgment; or

  (e)  by repaying an amount of money paid to or recovered by the Minister for the tax, fee, penalty, recoverable grant or other debt.

Conditional remission

   (6)  If a remission is granted under this section subject to a condition and the condition is not performed, the tax, fee, penalty, recoverable grant or other debt that is remitted or to be remitted may be collected and all proceedings may be had as if there had been no remission.

Effect of conditional remission

   (7)  A conditional remission, upon performance of the condition, and an unconditional remission have effect as if the remission was made after the tax, fee, penalty, recoverable grant or other debt in respect of which it was granted had been sued for and recovered.

Payments

   (8)  Remissions granted under this or any other Act may be paid out of the Consolidated Revenue Fund.

Report

   (9)  Each remission of $1,000 or more that is granted under this section shall be reported to the Legislature in the Public Accounts.

Remission has effect of pardon

   (10)  If a penalty imposed by any law relating to revenue has been wholly and unconditionally remitted under this section, the remission has the effect of a pardon for the offence for which the penalty was imposed and afterwards the offence has no legal effect prejudicial to the person to whom the remission is granted.

   6.  Section 7 of the Act is amended by adding the following subsections:

Interest may be credited retrospectively

   (3)  An order of the Lieutenant Governor in Council under subsection (2) may authorize the crediting of interest on money to which subsection (1) applies with effect from a date which precedes the date of the relevant order.

Limit on interest

   (4)  Interest paid under subsection (2) on money to which subsection (1) applies shall not exceed the income earned on that money while it is held in the Consolidated Revenue Fund.

Exception to limit

   (5)  Despite subsection (4), interest may be paid under subsection (2) on money that has been received by or on behalf of the Crown for the special purpose of administering a pension fund or supplemental pension fund in an amount that exceeds the income earned on that money while it is held in the Consolidated Revenue Fund.

   7.  The French version of subsection 9 (4) of the Act is amended by striking out "compte de revenus" and substituting "compte de recettes".

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

Deemed expense for purposes of subs. (4)

   (5)  An amount payable under Part IX of the Excise Tax Act (Canada) in respect of which the Crown is entitled to a refund is deemed to be an expense to which subsection (4) applies.

   9.  Subsection 11.2 (2) of the Act is repealed.

   10.  Subsection 11.3 (3) of the Act is repealed.

   11.  Subsection 11.4 (3) of the Act is repealed.

   12.  Subsection 11.5 (3) of the Act is repealed.

   13.  Subsection 11.6 (10) of the Act is repealed.

   14.  Section 11.9 of the Act is repealed.

   15.  Section 14 of the Act is repealed.

   16.  Subsection 14.1 (4) of the Act is repealed.

   17.  The French version of the definition of "ministry" in subsection 15 (1) of the Act is amended by striking out "les produits" and substituting "les re­cettes".

   18.  Section 16 of the Act is repealed.

   19.  Subsection 16.0.1 (3) of the Act is repealed.

   20.  Section 16.2 of the Act is repealed.

   21.  Section 43 of the Act is amended by adding the following subsection:

Application of subs. (2)

   (3)  Subsection (2) applies despite any other Act unless the other Act expressly provides that it applies despite subsection (2).

Consequential Repeals

Capital Investment Plan Act, 1993

   22.  Part VI (sections 64 to 67) of the Capital Investment Plan Act, 1993 is repealed.

Ministry of Revenue Act

   23.  Subsection 7 (2) and sections 11 and 12 of the Ministry of Revenue Act are repealed.

Ministry of Treasury and Economics Act

   24.  The Ministry of Treasury and Economics Act is repealed.

Treasury Board Act, 1991

   25.  The Treasury Board Act, 1991 is repealed.

Consequential Amendments

Auditor General Act

   26.  The definition of "fiscal year" in section 1 of the Auditor General Act is amended by striking out "Ministry of Treasury and Economics Act" at the end and substituting "Financial Administration Act".

Crown Employees Collective Bargaining Act, 1993

   27.  Paragraph 13 of subsection 1.1 (3) of the Crown Employees Collective Bargaining Act, 1993 is amended by striking out "sections 6, 7, 8 or 9 of the Treasury Board Act, 1991" at the end and substituting "Part 0.1 of the Financial Administration Act".

Electricity Act, 1998

   28.  Subsection 81 (1.1) of the Electricity Act, 1998 is amended by striking out "subsection 13 (3) of the Ministry of Treasury and Economics Act" at the end and substituting "Part 0.1 of the Financial Administration Act".

Investing in Ontario Act, 2008

   29.  Subsection 1 (3) of the Investing in Ontario Act, 2008 is amended by striking out "section 13 of the Ministry of Treasury and Economics Act" at the end and substituting "Part 0.1 of the Financial Administration Act".

Legislative Assembly Act

   30.  Section 105 of the Legislative Assembly Act is amended by striking out "the Management Board of Cabinet Act, the Financial Administration Act or the Ministry of Treasury and Economics Act" and substituting "the Management Board of Cabinet Act or the Financial Administration Act".

Metrolinx Act, 2006

   31.  Subsection 28 (1) of the Metrolinx Act, 2006 is amended by striking out "the Treasury Board of Cabinet" at the end and substituting "Treasury Board".

Ontario Provincial Police Collective Bargaining Act, 2006

   32.  Subparagraph 2 iv of subsection 2 (1) of the Ontario Provincial Police Collective Bargaining Act, 2006 is amended by striking out "section 6, 7, 8 or 9 of the Treasury Board Act, 1991" and substituting "Part 0.1 of the Financial Administration Act".

Commencement

Commencement

   33.  This Schedule comes into force on the day the Ontario Tax Plan for More Jobs and Growth Act, 2009 receives Royal Assent.

Schedule K
Interim Appropriation for 2010-2011 Act, 2009

Interpretation

   1.  (1)  Expressions used in this Act have the same meaning as in the Supply Act, 2009 unless the context requires otherwise.

Same

   (2)  In this Act, a reference to the estimates and supplementary estimates for 2010-11 means the estimates and supplementary estimates for the fiscal year ending on March 31, 2011 as tabled in the Assembly on or before March 31, 2011.

Expenses of the public service

   2.  (1)  For the fiscal year ending on March 31, 2011, amounts not exceeding a total of $55,000,000,000,

  (a)  may be paid out of the Consolidated Revenue Fund to be applied to the expenses of the public service that are not otherwise provided for; or

  (b)  may be recognized as non-cash expenses of the public service.

Applied in accordance with estimates and supplementary estimates

   (2)  The amounts referred to in subsection (1) must be applied in accordance with the votes and items set out in the estimates and supplementary estimates for 2010-11.

Investments of the public service

   3.  (1)  For the fiscal year ending on March 31, 2011, amounts not exceeding a total of $1,500,000,000,

  (a)  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; or

  (b)  may be recognized as non-cash investments of the public service.

Applied in accordance with estimates and supplementary estimates

   (2)  The amounts referred to in subsection (1) must be applied in accordance with the votes and items set out in the estimates and supplementary estimates for 2010-11.

Expenses of the Legislative Offices

   4.  For the fiscal year ending on March 31, 2011, 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 2010-11.

Expenditures of the public service

   5.  An expenditure of the public service in the votes and items set out in the estimates and supplementary estimates for 2010-11 may be incurred or recognized by the Crown through any ministry to which, during the fiscal year ending on March 31, 2011, 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, 2010.

Short title

   7.  The short title of the Act set out in this Schedule is the Interim Appropriation for 2010-2011 Act, 2009.

Schedule L
Management Board of Cabinet Act

   1.  Subsection 2 (2) of the Management Board of Cabinet Act is amended by striking out "six other members" and substituting "seven other members".

Commencement

   2.  This Schedule comes into force on the day the Ontario Tax Plan for More Jobs and Growth Act, 2009 receives Royal Assent.

Schedule M
Ministry of Revenue Act

   1.  (1)  Subsection 6.1 (1) of the Ministry of Revenue Act is amended by adding the following definition:

"federal public service" has the same meaning as "public service" in subsection 2 (1) of the Public Service Employment Act (Canada); ("fonction publique fédérale")

   (2)  Subsections 6.1 (3) and (4) of the Act are repealed and the following substituted:

Transfer between certain pension plans

   (3)  This section governs the transfer of assets from the Public Service Pension Plan (Ontario) and from the OPSEU Pension Plan (Ontario) to the Public Service Superannuation Plan (Canada) in respect of eligible former employees in the Ministry or in the Ministry of Finance who become employees in the federal public service in connection with a prescribed restructuring of tax authority between the Province and Canada or a prescribed transfer of tax administration activities from the Province to Canada.

Nature of transfer

   (3.1)  The restructuring or transfer prescribed under subsection (3) is deemed, for the purposes of the Pension Benefits Act, to be a transaction described in subsection 80 (1) of that Act.

Eligible former employees

   (4)  A person who ceases to be employed in the Ministry or in the Ministry of Finance is an eligible former employee for the purposes of this section if he or she becomes an employee in the federal public service in such circumstances as may be prescribed.

   (3)  Subsection 6.1 (5) of the Act is amended by striking out "in the Ministry" in the portion before clause (a) and substituting "in the Ministry or in the Ministry of Finance".

   (4)  Subsection 6.1 (7) of the Act is amended,

  (a)  by striking out "the Canada Revenue Agency" at the beginning of clause (a) and substituting "the Government of Canada"; and

  (b)  by striking out "the Canada Revenue Agency" at the beginning of clause (b) and substituting "the Government of Canada".

   (5)  Subsection 6.1 (10) of the Act is repealed and the following substituted:

Regulations

   (10)  The Minister may make regulations prescribing the matters referred to in subsections (3) and (4) and clause (5) (a).

Commencement

   2.  This Schedule comes into force on a day to be named by proclamation of the Lieutenant Governor.

Schedule N
Ontario Capital Growth Corporation Act, 2008

   1.  Clauses 4 (a), (b) and (c) of the Ontario Capital Growth Corporation Act, 2008 are repealed and the following substituted:

  (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 acquire, manage and otherwise deal with the other investments or classes of investments that are prescribed by the regulations;

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

  (d)  to receive, hold, invest, sell or otherwise deal with property, whether real or personal, in connection with the objects described in clause (a), (b) or (c).

   2.  (1)  Subsection 6 (3) of the Act is amended by striking out "make investments" in the portion before clause (a). 

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

Temporary investments

   (4)  The Corporation may temporarily invest money not immediately required to carry out its objects, but only if,

  (a)  a by-law of the Corporation authorizes the investments which shall be selected from the following:

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

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

  (b)  the Minister of Finance has consented to the by-law mentioned in clause (a); and

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

   3.  Subsection 13 (2) of the Act is repealed.

   4.  Clause 19 (1) (a) of the Act is repealed and the following substituted:

  (a)  prescribing anything that this Act describes as being prescribed by the regulations;

Commencement

   5.  This Schedule comes into force on the day the Ontario Tax Plan for More Jobs and Growth Act, 2009 receives Royal Assent.

Schedule O
Ontario Loan Act, 2009 (No. 2)

Borrowing authorized

   1.  (1)  The Lieutenant Governor in Council may borrow in any manner provided by the Financial Administration Act such sums, not exceeding a total aggregate amount of $15.1 billion, as are considered necessary to discharge any indebtedness or obligation of Ontario or to make any payment authorized or required by any Act to be made out of the Consolidated Revenue Fund.

Other Acts

   (2)  The authority to borrow conferred by this Act is in addition to that conferred by any other Act.

Expiry

   2.  (1)  No order in council authorizing borrowing under this Act shall be made after December 31, 2011.

Same

   (2)  The Crown shall not borrow money after December 31, 2012 under an order in council that authorizes borrowing under this Act unless, on or before December 31, 2012,

  (a)  the Crown has entered into an agreement to borrow the money under the order in council; or

  (b)  the Crown has entered into an agreement respecting a borrowing program and the agreement enables the Crown to borrow up to a specified limit under the order in council.

Commencement

   3.  The Act set out in this Schedule comes into force on the day the Ontario Tax Plan for More Jobs and Growth Act, 2009 receives Royal Assent.

Short title

   4.  The short title of the Act set out in this Schedule is the Ontario Loan Act, 2009 (No. 2).

Schedule P
Proceedings Against the Crown Act

   1.  Subsection 2 (1) of the Proceedings Against the Crown Act is amended,

  (a)  by striking out "the Corporations Tax Act";

  (b)  by striking out "the Income Tax Act", "the Mining Tax Act" and "the Motor Vehicle Fuel Tax Act, the Retail Sales Tax Act, the Taxation Act, 2007";

   (c)  by adding "Parts V.1 (Debt Retirement Charge) and VI (Special Payments) of the Electricity Act, 1998" before "the Workplace Safety and Insurance Act, 1997"; and

  (d)  by striking out "The Succession Duty Act, being chapter 449 of the Revised Statutes of Ontario, 1970" at the end and substituting "every statute that imposes a tax payable to the Crown or the Minister of Finance".

Commencement

   2.  This Schedule comes into force on the day the Ontario Tax Plan for More Jobs and Growth Act, 2009 receives Royal Assent.

Schedule Q
Professional engineers act

   1.  Section 15 of the Professional Engineers Act is amended by adding the following subsection:

Exclusion

   (9)  Sections 3.2, 3.3 and 3.4 of the Business Corporations Act do not apply to,

  (a)  a corporation that has been issued a certificate of authorization under subsection (1); or

  (b)  a corporation that is a partner in a partnership of corporations that has been issued a certificate of authorization under subsection (3).

Commencement

   2.  This Schedule is deemed to have come into force on November 1, 2001.

Schedule R
Retail Sales Tax Act

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

Time limit for refund of certain taxes

   (16.0.0.1)  Despite clause (16) (b), a vendor shall not, after October 31, 2010, refund any tax imposed under section 2 or 3.1.

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

If exempt property put to taxable use

   (21)  If tangible personal property is purchased exempt from the tax imposed by this Act and the tangible personal property is subsequently put to a taxable use before July 1, 2010, the purchaser shall pay the tax imposed by this Act on the fair value of the tangible personal property at the time of the change in use.

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

Transitional rules re s. 2

Definitions

   2.0.0.1  (1)  In this section,

"commercial parking" means the taxable service described in clause (e) of the definition of "taxable service" in subsection 1 (1); ("stationnement commercial")

"consideration" means an amount that would be consideration for the purposes of Part IX of the Excise Tax Act (Canada) if "supply" in the definition of "consideration" in subsection 123 (1) of that Act were read as "sale" or "promotional distribution of an admission", depending on the context; ("contrepartie")

"specified purchaser" means a person who,

  (a)  is a consumer within the meaning of subsection 123 (1) of the Excise Tax Act (Canada) in respect of the purchase of tangible personal property, a taxable service or an admission,

  (b)  is not registered under Part IX of the Excise Tax Act (Canada) and is not a consumer within the meaning of subsection 123 (1) of that Act, or

   (c)  satisfies such conditions as the Minister may prescribe. ("acheteur déterminé")

When consideration, etc., becomes due

   (2)  For the purposes of this section, an amount that is a payment or all or part of the consideration for tangible personal property, a taxable service or admission to a place of amusement becomes due on the earliest of:

    1.  The earlier of the day an invoice is first issued for that amount and the date of that invoice.

    2.  The day the invoice would have been issued for that amount but for an undue delay.

    3.  The day the purchaser is required to pay that amount pursuant to an agreement in writing.

Tangible personal property, sale after June 30, 2010

   (3)  The following rules apply to a purchaser of tangible personal property if the time of the sale is after June 30, 2010:

    1.  Unless otherwise provided in this Act or the regulations, no tax is payable by the purchaser under subsection 2 (1) or (2).

    2.  Despite paragraph 1, tax is payable by the purchaser under subsection 2 (1) or (2), as the case may be,

            i.  if the purchaser is a specified purchaser and all or part of the consideration becomes due before May 1, 2010 or is paid before May 1, 2010 without having become due, or

           ii.  if the purchaser is not a specified purchaser and all or part of the consideration becomes due before October 15, 2009 or is paid before October 15, 2009 without having become due.

    3.  If paragraph 2 applies, the fair value for the purposes of subsection 2 (1) or (2), as the case may be, is deemed to be,

            i.  if the purchaser is a specified purchaser, the value of the consideration that becomes due before May 1, 2010 or that is paid before May 1, 2010 without having become due, or

           ii.  if the purchaser is not a specified purchaser, the value of the consideration that becomes due before October 15, 2009 or that is paid before October 15, 2009 without having become due.

Taxable service provided only after June 30, 2010

   (4)  The following rules apply to a purchaser of a taxable service, other than commercial parking, that is provided only after June 30, 2010:

    1.  Unless otherwise provided in this Act or the regulations, no tax is payable by the purchaser under subsection 2 (3) or (4).

    2.  Despite paragraph 1, tax is payable by the purchaser under subsection 2 (3) or (4), as the case may be,

            i.  if the purchaser is a specified purchaser and all or part of the consideration becomes due before May 1, 2010 or is paid before May 1, 2010 without having become due, or

           ii.  if the purchaser is not a specified purchaser and all or part of the consideration becomes due before October 15, 2009 or is paid before October 15, 2009 without having become due.

    3.  If paragraph 2 applies, the fair value for the purposes of subsection 2 (3) or (4), as the case may be, is deemed to be,

            i.  if the purchaser is a specified purchaser, the value of the consideration that becomes due before May 1, 2010 or that is paid before May 1, 2010 without having become due, or

           ii.  if the purchaser is not a specified purchaser, the value of the consideration that becomes due before October 15, 2009 or that is paid before October 15, 2009 without having become due.

Rental payments and commercial parking payments, periods beginning after June 30, 2010

   (5)  The following rules apply with respect to a rental payment for a period beginning after June 30, 2010 that is made by or on behalf of a purchaser who rents or leases a taxable service or acquires tangible personal property at a sale that is a lease or rental referred to in clause 2 (7) (b) and with respect to a payment for a period beginning after June 30, 2010 that is made by or on behalf of a purchaser for commercial parking:

    1.  Unless otherwise provided in this Act or the regulations, no tax is payable by the purchaser under section 2.

    2.  Despite paragraph 1, tax is payable by the purchaser under section 2,

            i.  if the purchaser is a specified purchaser and all or part of the payment becomes due before May 1, 2010 or is paid before May 1, 2010 without having become due, or

           ii.  if the purchaser is not a specified purchaser and all or part of the payment becomes due before October 15, 2009 or is paid before October 15, 2009 without having become due.

    3.  If paragraph 2 applies, the fair value for the purposes of section 2 is deemed to be,

            i.  if the purchaser is a specified purchaser, the fair value of the payment that becomes due before May 1, 2010 or that is paid before May 1, 2010 without having become due, or

           ii.  if the purchaser is not a specified purchaser, the fair value of the payment that becomes due before October 15, 2009 or that is paid before October 15, 2009 without having become due.

Taxable service not substantially completed before July 1, 2010

   (6)  The following rules apply to a purchaser of a taxable service, other than transient accommodation and commercial parking, that begins before July 1, 2010 and is not substantially completed before that day:

    1.  Unless otherwise provided in this Act or the regulations, no tax is payable by the purchaser under subsection 2 (3) in respect of the part of the taxable service provided after June 30, 2010.

    2.  Despite paragraph 1, tax is payable by the purchaser under subsection 2 (3),

            i.  if the purchaser is a specified purchaser and all or part of the consideration becomes due before May 1, 2010 or is paid before May 1, 2010 without having become due, or

           ii.  if the purchaser is not a specified purchaser and all or part of the consideration becomes due before October 15, 2009 or is paid before October 15, 2009 without having become due.

    3.  If paragraph 2 applies and the purchaser is a specified purchaser, the fair value for the purposes of subsection 2 (3) is deemed to be the sum of,

            i.  the value of the consideration that becomes due before May 1, 2010 or that is paid before May 1, 2010 without having become due, and

           ii.  the value of the consideration,

                  A.  that relates to the part of the taxable service provided before July 1, 2010, and

                  B.  that becomes due after April 30, 2010 or that is paid after April 30, 2010 without having become due before May 1, 2010.

    4.  If paragraph 2 applies and the purchaser is not a specified purchaser, the fair value for the purposes of subsection 2 (3) is deemed to be the sum of,

            i.  the value of the consideration that becomes due before October 15, 2009 or that is paid before October 15, 2009 without having become due before that day, and

           ii.  the value of the consideration,

                  A.  that relates to the part of the taxable service provided before July 1, 2010, and

                  B.  that becomes due after October 14, 2009 or that is paid after October 14, 2009 without having become due before October 15, 2009. 

Rental payments and commercial parking payments, periods ending on or after July 31, 2010

   (7)  The following rules apply with respect to a rental payment for a period ending on or after July 31, 2010 that is made by or on behalf of a purchaser who rents or leases a taxable service or acquires tangible personal property at a sale that is a lease or rental referred to in clause 2 (7) (b) and with respect to a payment for a period ending on or after July 31, 2010 that is made by or on behalf of a purchaser for commercial parking:

    1.  Unless otherwise provided in this Act or the regulations, no tax is payable by the purchaser under section 2 in respect of the part of the payment that relates to any part of the period that is after June 30, 2010.

    2.  Despite paragraph 1, tax is payable by the purchaser under section 2,

            i.  if the purchaser is a specified purchaser and all or part of the payment becomes due before May 1, 2010 or is paid before May 1, 2010 without having become due, or

           ii.  if the purchaser is not a specified purchaser and all or part of the payment becomes due before October 15, 2009 or is paid before October 15, 2009 without having become due.

    3.  If paragraph 2 applies and the purchaser is a specified purchaser, the fair value for the purposes of section 2 is deemed to be the sum of,

            i.  the fair value of the payment that becomes due before May 1, 2010 or that is paid before May 1, 2010 without having become due, and

           ii.  the fair value of the payment,

                  A.  that relates to any part of the period that is before July 1, 2010, and

                  B.  that becomes due after April 30, 2010 or that is paid after April 30, 2010 without having become due before May 1, 2010.

    4.  If paragraph 2 applies and the purchaser is not a specified purchaser, the fair value for the purposes of section 2 is deemed to be the sum of,

            i.  the fair value of the payment that becomes due before October 15, 2009 or that is paid before October 15, 2009 without having become due, and

           ii.  the fair value of the payment,

                  A.  that relates to any part of the period that is before July 1, 2010, and

                  B.  that becomes due after October 14, 2009 or that is paid after October 14, 2009 without having become due before October 15, 2009.

Admission to place of amusement, only after June 30, 2010

   (8)  The following rules apply to a purchaser of an admission to a place or places of amusement that begins after June 30, 2010:

    1.  Unless otherwise provided in this Act or the regulations, no tax is payable by the purchaser under subsection 2 (5).

    2.  Despite paragraph 1, tax is payable by the purchaser under subsection 2 (5),

            i.  if the purchaser is a specified purchaser and all or part of the consideration becomes due before May 1, 2010 or is paid before May 1, 2010 without having become due, or

           ii.  if the purchaser is not a specified purchaser and all or part of the consideration becomes due before October 15, 2009 or is paid before October 15, 2009 without having become due.

    3.  If paragraph 2 applies, the price of admission for the purposes of subsection 2 (5) is deemed to be,

            i.  if the purchaser is a specified purchaser, the value of the consideration that becomes due before May 1, 2010 or that is paid before May 1, 2010 without having become due, or

           ii.  if the purchaser is not a specified purchaser, the value of the consideration that becomes due before October 15, 2009 or that is paid before October 15, 2009 without having become due.

Admission to place of amusement, not substantially completed before July 1, 2010

   (9)  The following rules apply to a purchaser of an admission to a place or places of amusement that relates to a period that begins before July 1, 2010 and is not substantially completed before that day:

    1.  Unless otherwise provided in this Act or the regulations, no tax is payable by the purchaser under subsection 2 (5) in respect of the price of admission that relates to the part of the period after June 30, 2010.

    2.  Despite paragraph 1, tax is payable by the purchaser under subsection 2 (5),

            i.  if the purchaser is a specified purchaser and all or part of the consideration becomes due before May 1, 2010 or is paid before May 1, 2010 without having become due, or

           ii.  if the purchaser is not a specified purchaser and all or part of the consideration becomes due before October 15, 2009 or is paid before October 15, 2009 without having become due.

    3.  If paragraph 2 applies and the purchaser is a specified purchaser, the price of admission for the purposes of subsection 2 (5) is deemed to be the sum of,

            i.  the value of the consideration that becomes due before May 1, 2010 or that is paid before May 1, 2010 without having become due, and

           ii.  the value of the consideration,

                  A.  that relates to the part of the period that is before July 1, 2010, and

                  B.  that becomes due after April 30, 2010 or that is paid after April 30, 2010 without having become due before May 1, 2010.

    4.  If paragraph 2 applies and the purchaser is not a specified purchaser, the price of admission for the purposes of subsection 2 (5) is deemed to be the sum of,

            i.  the value of the consideration that becomes due before October 15, 2009 or that is paid before October 15, 2009 without having become due, and

           ii.  the value of the consideration,

                  A.  that relates to the part of the period that is before July 1, 2010, and

                  B.  that becomes due after October 14, 2009 or that is paid after October 14, 2009 without having become due before October 15, 2009.

Property brought into Ontario

   (10)  Subsection 2 (18) does not apply to tangible personal property that is brought into Ontario after June 30, 2010.

Time limit for collecting and paying tax

   (11)  Tax imposed under section 2 shall be collected by a vendor and paid by a purchaser at the earlier of,

  (a)  the time the tax would otherwise be required under this Act to be collected and paid; and

  (b)  October 31, 2010.

Limitation on refunds

   (12)  The following rules apply for the purposes of determining the amount of tax to be refunded under subsection 2 (11) or (16) if a purchaser paid tax under section 2 in respect of tangible personal property that is returned to the vendor after June 30, 2010 but before November 1, 2010:

    1.  If the tangible personal property is returned for a full refund of the consideration previously paid, the tax paid in respect of the sale may be refunded to the purchaser.

    2.  If the tangible personal property is exchanged for other tangible personal property having a consideration that is less than the consideration paid for the original tangible personal property, the tax that was paid in respect of the difference in consideration may be refunded to the purchaser.

    3.  If the tangible personal property is exchanged for other tangible personal property and the amount of the consideration paid for the original tangible personal property is equal to or less than the amount of the consideration for the other tangible personal property, no tax shall be refunded.

Time limit for applications for refunds

   (13)  Applications for refunds or rebates under this Act, other than applications for refunds or rebates in respect of tax imposed under section 2.1, 2.1.1 or 4.2, must be made to the Minister on or before the earlier of,

  (a)  the day that would otherwise be the last day on which the application may be made under the applicable provision of this Act or the regulations; and

  (b)  June 30, 2014.

   3.  Section 2.0.1 of the Act is repealed and the following substituted:

Progress payments

   2.0.1  Despite section 2.0.0.1, the tax imposed under subsection 2 (1) or (3) shall apply in the manner prescribed by the Minister if,

  (a)  a purchaser acquires tangible personal property or a taxable service under a contract to construct, renovate, alter or repair real property, a ship or a vessel; and

  (b)  progress payments under the contract with respect to the tangible personal property or taxable service become due or are paid without becoming due after October 14, 2009 and before July 1, 2010.

   4.  Subsection 2.1 (10) of the Act is repealed and the following substituted:

Further exemptions

   (10)  Despite subsection (1), no tax is payable on premiums, assessments or contributions paid pursuant to the Canada Pension Plan, the Credit Unions and Caisses Populaires Act, 1994, the Crop Insurance Act (Ontario), 1996, the Employment Insurance Act (Canada), the Workplace Safety and Insurance Act, 1997 or any other statute that is prescribed by the regulations.

   5.  (1)  This section applies only if,

  (a)  Bill 212 (Good Government Act, 2009), introduced on October 27, 2009, receives Royal Assent;

  (b)  section 2 of Schedule 24 to Bill 212 comes into force; and

   (c)  the Lieutenant Governor in Council makes a regulation under clause 12 (h) of the Ministry of Tourism and Recreation Act, as enacted by section 2 of Schedule 24 to Bill 212, establishing geographic boundaries of tourism regions within the Province, and the regulation is in force.

   (2)  References in this section to provisions of Bill 212 are references to those provisions as they were numbered in the first reading version of the Bill.

   (3)  The Act is amended by adding the following section:

Tax on transient accommodation

   2.1.1  (1)  Every purchaser who, on or after the day this section comes into force, purchases a taxable service that is transient accommodation in a tourism region in the Province established by regulations made under the Ministry of Tourism and Recreation Act shall pay to Her Majesty in right of Ontario a tax equal to the fair value of the transient accommodation multiplied by the tax rate, not to exceed 3 per cent, that is prescribed by the Minister.

Invoice

   (2)  The amount of tax payable by a purchaser under subsection (1) must be shown as a separate item on the purchaser's invoice or receipt.

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

Exception

   (2.1)  Unless otherwise provided in this Act or the regulations, no tax is payable under subsection (2) by a registrant if the registration year begins on or after July 1, 2010.

   7.  Clause 3.1 (1) (d) of the Act is repealed and the following substituted:

  (d)  $0.13 per litre of beer or wine delivered to the person on or after April 19, 1994 and before July 1, 2010.

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

Tax for fuel conservation

   (1)  Every purchaser of a new passenger vehicle or sport utility vehicle shall pay to Her Majesty in right of Ontario a tax in respect of the consumption or use of the vehicle in the amount determined under subsection (5) or (6) if,

  (a)  the first sale of the vehicle is a retail sale to the purchaser in Ontario before July 1, 2010;

  (b)  the first sale of the vehicle is a rental or lease to the purchaser in Ontario for a term of at least one year commencing before July 1, 2010;

   (c)  the first sale of the vehicle is outside Ontario and before July 1, 2010 the vehicle is brought into Ontario by the purchaser or delivered in Ontario to the purchaser; or

  (d)  the first sale of the vehicle in Ontario is a lease or rental of the vehicle for a term of less than one year to the purchaser or another person and the purchaser leases or rents the vehicle within 180 days of the first sale but before July 1, 2010.

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

   (3)  Subsection 4 (7) of the Act is amended by striking out "clause (4) (c)" and substituting "clause (1) (d)".

   (4)  Subsection 4 (8) of the Act is repealed and the following substituted:

If leasing vehicle before and after July 1, 2010

   (8)  A lessor of a vehicle referred to in clause (1) (d) may, in lieu of collecting and remitting the tax required to be paid by purchasers as specified under subsection (7), pay an amount equal to the tax on the vehicle as specified in subsection (5) or (6), multiplied by the ratio of the number of days the lessor owned the vehicle before July 1, 2010 to 180 and, on payment of that amount, the purchasers of the vehicle are not liable to pay tax under this section.

   (5)  Subsections 4 (10) and (11) of the Act are repealed and the following substituted:

Reporting by manufacturers and importers

   (10)  Every manufacturer or importer of vehicles who intends to sell in Ontario before July 1, 2010 a passenger vehicle or sport utility vehicle or a type of either of them shall provide to the Minister at least 30 days before the date of the sale of the vehicle or the first sale of the type of vehicle, as the case may be, in Ontario such information as is prescribed by the Minister to permit the Minister to determine the highway fuel consumption rating for the vehicle or type of vehicle.

   9.  (1)  Subsection 4.1 (1) of the Act is repealed and the following substituted:

Tax credit for fuel conservation

   (1)  Every purchaser of a new passenger car is entitled to a tax credit of $100 to be applied against the purchaser's liability for tax under section 2 if,

  (a)  the first sale of the new passenger car is a retail sale to the purchaser in Ontario before July 1, 2010;

  (b)  the first sale of the new passenger car is a rental or lease to the purchaser in Ontario for a term commencing before July 1, 2010;

   (c)  the first sale of the new passenger car is outside Ontario and before July 1, 2010 the vehicle is brought into Ontario by the purchaser or delivered in Ontario to the purchaser; or

  (d)  the first sale of the new passenger car in Ontario is a lease or rental of the vehicle for a term of less than one year to the purchaser or another person and the purchaser leases or rents the vehicle within 180 days of the first sale but before July 1, 2010.

   (2)  Subsection 4.1 (3) of the Act is repealed.

   (3)  Subsection 4.1 (4) of the Act is repealed and the following substituted:

Application of clause (1) (d)

   (4)  The total amount of the tax credit payable under this section to all purchasers referred to in clause (1) (d) in respect of the same passenger car shall not exceed $100, and each purchaser is entitled to receive the proportion of the tax credit that, in the opinion of the Minister, reasonably represents the use of the passenger car by that purchaser during the 180 days referred to in that clause.

   (4)  Subsection 4.1 (6) of the Act is amended by striking out "clause (3) (a)" and substituting "clause (1) (a) or (b)".

   10.  (1)  Subsections 4.2 (1) and (2) of the Act are repealed and the following substituted:

Tax on specified vehicles

   (1)  Subject to subsection (5), every purchaser of a specified vehicle shall pay to Her Majesty in right of Ontario a tax in respect of the consumption or use of the specified vehicle computed at the rate of 8 per cent of the fair market value of the specified vehicle if the purchaser acquires the vehicle before July 1, 2010 and shall not pay tax in respect of the consumption or use of the specified vehicle under section 2.

Same, purchases after June 30, 2010, etc.

   (1.1)  Every purchaser of a specified vehicle shall pay to Her Majesty in right of Ontario a tax in respect of the consumption or use of the specified vehicle computed at the rate of 13 per cent of the fair market value of the specified vehicle if the purchaser,

  (a)  acquires the vehicle in Ontario after June 30, 2010; or

  (b)  acquires the vehicle in Canada but outside Ontario and,

           (i)  brings the vehicle into Ontario after June 30, 2010, or

          (ii)  receives delivery of the vehicle in Ontario after June 30, 2010.

Exception if severe damage or excessive use

   (2)  Despite subsections (1) and (1.1), if both the fair value and the appraised value, as defined by the Minister, of a specified vehicle are, by reason of severe damage or excessive use, less than the average wholesale price of the specified vehicle as determined in the manner prescribed by the Minister, the tax payable under subsection (1) or (1.1) in respect of the consumption or use of the specified vehicle is the greater of the fair value or appraised value multiplied by the tax rate set out in subsection (1) or (1.1), whichever applies.

   (2)  The definition of "fair market value" in subsection 4.2 (3) of the Act is amended by striking out "motor vehicle" and substituting "specified vehicle".

   (3)  The definitions of "gross weight", "highway", "motorcycle" and "vehicle" in subsection 4.2 (3) of the Act are repealed and the following substituted:

"gross weight", "highway" and "motorcycle" each has the same meaning as in the Highway Traffic Act; ("poids brut", "voie publique", "motocyclette")

   (4)  Subsection 4.2 (3) of the Act is amended by adding the following definition:

"specified vehicle" means,

  (a)  for the purposes of the tax imposed under subsection (1), a motor vehicle, and

  (b)  for the purposes of the tax imposed under subsection (1.1),

           (i)  a motor vehicle or other vehicle for which a permit is required under the Highway Traffic Act to operate on a highway,

          (ii)  an off-road vehicle or motorized snow vehicle for which a permit is required under the Off-Road Vehicles Act, or the Motorized Snow Vehicles Act,

         (iii)  aircraft,

         (iv)  a vessel, or

          (v)  another type of vehicle prescribed by the Minister. ("véhicule déterminé")

   (5)  Subsection 4.2 (4) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Exemptions

   (4)  Subsections (1) and (1.1) do not apply in respect of a specified vehicle that is,

.     .     .     .     .

   (6)  Subsection 4.2 (4) of the Act is amended by adding the following clauses:

(b.1) acquired after June 30, 2010 by a purchaser at a sale that is,

           (i)  a taxable supply by a registrant under Part IX of the Excise Tax Act (Canada), or

          (ii)  an exempt supply under Part I of Schedule V to the Excise Tax Act (Canada), other than an exempt supply prescribed by the Minister;

(b.2) acquired after June 30, 2010 and that would have been exempt from tax under this Act if it had been acquired before July 1, 2010;

   (7)  Clause 4.2 (4) (d) of the Act is repealed and the following substituted:

  (d)  acquired by a person by gift from a member of his or her family, as defined in subsection 8 (2), from his or her brother or sister or from any other individual of a class prescribed by the Minister, if the vehicle has not been transferred on a tax-exempt basis under this clause within the 12-month period immediately preceding the acquisition;

   (8)  Subsection 4.2 (5) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Application of s. 2

   (5)  Despite subsection (1) and subject to subsection (5.1), section 2 applies in respect of a specified vehicle that is,

.     .     .     .     .

   (9)  Clause 4.2 (5) (c) of the Act is amended by striking out "motor vehicle" and substituting "vehicle".

   (10)  Clause 4.2 (5) (d) of the Act is amended by striking out "used motor vehicle" and substituting "vehicle".

   (11)  Section 4.2 of the Act is amended by adding the following subsection:

When subs. (5) not applicable

   (5.1)  If tax is not payable under section 2 in respect of a specified vehicle by reason of section 2.0.0.1, subsection (5) does not apply and tax is payable under this section.

   (12)  Subsections 4.2 (6), (7) and (8) of the Act are repealed and the following substituted:

Deemed purchaser

   (6)  A purchaser of a specified vehicle is subject to pay tax under this section if,

  (a)  the vehicle is purchased before July 1, 2010 and the sale of the vehicle to the purchaser is not the first sale of the vehicle at a retail sale in Ontario;

  (b)  the vehicle is purchased at a sale in Ontario after June 30, 2010 or brought into Ontario after that day, or delivery of the vehicle is received in Ontario after that day;

   (c)  the sale of the vehicle to the purchaser occurs after the vehicle is first brought into Ontario and tax was paid or ought to have been paid by the seller of the vehicle under subsection 2 (18) or the seller was exempt from tax under this Act; or

  (d)  the purchaser is a shareholder of a corporation and acquires the specified vehicle at a sale as defined in clause (i) of the definition of "sale" in subsection 1 (1). 

Time of payment

   (7)  A purchaser shall pay the tax imposed under this section,

  (a)  at the time the purchaser applies for a permit for the vehicle under the Highway Traffic Act, the Off-Road Vehicles Act or the Motorized Snow Vehicles Act, as the case may be; or

  (b)  at the time of the sale or, if the purchaser purchased the vehicle in Canada but outside Ontario, at the time the purchaser brings the vehicle into Ontario or receives delivery of the vehicle in Ontario.

Those claiming exemption

   (8)  A person claiming an exemption from taxation under subsection (4) shall provide the documentation prescribed by the Minister to,

  (a)  the person authorized by the Minister under section 11, at the time the person applies for a permit under the Highway Traffic Act, the Off-Road Vehicles Act or the Motorized Snow Vehicles Act, if a permit is required under any of those Acts; or

  (b)  the Minister in the manner and at the time prescribed by the Minister in any other case.

   (13)  Subsection 4.2 (9) of the Act is amended,

  (a)  by striking out "used motor vehicle" wherever it appears and substituting in each case "specified vehicle"; and

  (b)  by striking out "subsection (1)" and substituting "subsection (1) or (1.1)".

   11.  (1)  Subparagraph 38 iii of subsection 7 (1) of the Act is repealed.

   (2)  Paragraphs 70 and 71 of subsection 7 (1) of the Act are repealed.

   12.  (1)  The French version of clause 9 (2) (e) of the Act is amended by striking out "une institution" and substituting "un établissement".

   (2)  Paragraph 2 of subsection 9 (3) of the Act is repealed.

   13.  Section 14 of the Act is amended by adding the following subsection:

Time limit

   (1.1)  No compensation is payable under subsection (1) in respect of a period that commences after March 31, 2010.

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

Small business transition support

   14.1  (1)  The Minister of Finance may pay a small business transition support payment to a person or entity after June 30, 2010 if the person or entity,

  (a)  is an eligible business;

  (b)  satisfies the requirements set out in this section; and

   (c)  satisfies the conditions, if any, prescribed by the Minister.

Eligible business, defined

   (2)  An individual, corporation, partnership, trust or other entity is an eligible business for the purposes of this section if the individual, corporation, partnership, trust or other entity,

  (a)  is not a listed financial institution within the meaning assigned by subsection 123 (1) of the Excise Tax Act (Canada);

  (b)  carries on business in Ontario on July 1, 2010 and is a registrant for the purposes of Part IX of the Excise Tax Act (Canada) on that day;

   (c)  makes taxable supplies for the purposes of Part IX of the Excise Tax Act (Canada) in the course of carrying on business;

  (d)  has taxable revenue of less than $2,000,000,

           (i)  for its first fiscal year commencing after June 30, 2010, or

          (ii)  for its last fiscal year commencing before July 1, 2010 if the Minister considers it appropriate in the circumstances to consider the taxable revenue of that fiscal year instead; and

  (e)  satisfies such conditions as the Minister may prescribe.

Amount of payment

   (3)  The amount of a small business transition support payment the Minister may pay to an eligible business is the amount determined in accordance with the rules prescribed by the Minister.

Notice

   (4)  If the Minister determines that an eligible business is entitled to a payment under this section, the Minister shall send a notice to the eligible business setting out the amount of the payment under this section to which the eligible business is entitled and shall pay that amount to the eligible business.

Repayment

   (5)  If an eligible business receives a payment under this section to which it is not entitled or receives a payment greater than the amount to which it is entitled under this section, the eligible business shall repay the amount or the excess amount, as the case may be, to the Minister.

Recovery of amount

   (6)  An amount payable under subsection (5) that has not been paid to the Minister constitutes a debt to Her Majesty in right of Ontario and may be recovered by way of deduction or set-off or may be recovered in any court of competent jurisdiction in proceedings commenced at any time or by any other manner provided by this Act.

Definitions

   (7)  For the purposes of this section,

"fiscal year" means, in respect of a business, the fiscal year of the business as determined for the purposes of Part IX of the Excise Tax Act (Canada); ("exercice")

"taxable revenue" means, in respect of an eligible business, the amount determined under the rules prescribed by the Minister. ("revenu imposable")

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

Disclosure requirement re tax included price advertised

   (4)  If the Minister authorizes a vendor under subsection (2) to advertise or quote a price for tangible personal property, a taxable service or an admission that includes the tax imposed under this Act, the price advertised or quoted is deemed to include the tax that would have been imposed under this Act but for section 2.0.0.1 if,

  (a)  the consideration for the tangible personal property, taxable service or admission,

           (i)  becomes due after October 14, 2009 and before May 1, 2010, or

          (ii)  is paid after October 14, 2009 and before May 1, 2010 without having become due; and

  (b)  the vendor has not disclosed in writing to the purchaser the amount of tax, if any, that is included in the price advertised or quoted.

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

(a.1) prescribing the rate of tax that is payable under section 2.1.1 in respect of transient accommodation in a tourism region;

   (2)  Clauses 48 (3) (k), (o) and (q) of the Act are repealed.

   (3)  Subsection 48 (3) of the Act is amended by adding the following clauses:

   (u)  prescribing circumstances in which subsection 14 (1.1) does not apply;

   (v)  prescribing rules with respect to the determination of amounts payable under section 14.1 to eligible businesses that are associated, as defined by the Minister.

   (4)  Section 48 of the Act is amended by adding the following subsection:

Tax on transient accommodation

   (4.1)  A regulation under clause (3) (a.1),

  (a)  shall not prescribe a tax rate that applies before July 1, 2010; and

  (b)  may prescribe different tax rates for different tourism regions.

   17.  The Act is amended by adding the following sections:

Comprehensive Integrated Tax Coordination Agreement

Comprehensive Integrated Tax Coordination Agreement

   50.  (1)  The Comprehensive Integrated Tax Coordination Agreement dated November 9, 2009, between the Minister on behalf of the Crown in right of Ontario and the Minister of Finance for Canada on behalf of the Government of Canada, is ratified and confirmed.

Amendments

   (2)  The Minister may at any time enter into an agreement with the Minister of Finance for Canada on behalf of the Government of Canada to amend the agreement or any amending agreement.

Other agreements or arrangements

   (3)  The Minister and the Minister of Revenue may, on behalf of the Crown in right of Ontario, enter into such other agreements or arrangements with the Government of Canada as either of them considers necessary or advisable respecting any matter relating to the Comprehensive Integrated Tax Coordination Agreement and its implementation.

Minister may make payments

   (4)  The Minister is authorized to make payments from the Consolidated Revenue Fund in accordance with the Comprehensive Integrated Tax Coordination Agreement and any agreement entered into under subsection (3) from amounts appropriated by the Legislature for those purposes.

Point of sale rebates

Definitions

   51.  (1)  In this section,

"eligible purchaser" means, in respect of property,

  (a)  a person who acquires the property,

  (b)  a person who receives delivery or possession of the property or brings the property into Ontario in circumstances in which tax under section 218.1 or Division IV.1 of Part IX of the Federal Act is payable by the person in respect of the property, or

   (c)  a person who imports the property in circumstances in which tax under section 212.1 of the Federal Act is payable by the person in respect of the property; ("acheteur admissible")

"Federal Act" means the Excise Tax Act (Canada); ("loi fédérale")

"Federal Minister" means a Minister of the Government of Canada who is responsible for the administration, enforcement or collection of the tax imposed under Part IX of the Federal Act; ("ministre fédéral")

"property" has the meaning given to that term by subsection 123 (1) of the Federal Act; ("bien")

"supplier" means a supplier for the purposes of Part IX of the Federal Act; ("fournisseur")

"supply" means a supply for the purposes of Part IX of the Federal Act. ("fourniture")

Supplier may make point of sale rebates

   (2)  A supplier may, on behalf of the Crown in right of Ontario, pay or credit an eligible purchaser with an amount equal to the tax, in whole or in part, that is paid or payable under subsection 165 (2) of the Federal Act for the supply of a qualifying property that is a supply made in Ontario for the purposes of Part IX of the Federal Act.

Qualifying property

   (3)  The following is qualifying property for the purposes of this section:

    1.  Books that satisfy the conditions prescribed by the Minister.

    2.  Children's clothing, footwear and diapers that satisfy the conditions prescribed by the Minister.

    3.  Children's car seats and booster seats that satisfy the conditions prescribed by the Minister.

    4.  Feminine hygiene products prescribed by the Minister.

    5.  Prepared food and beverages prescribed by the Minister that,

            i.  are purchased in circumstances prescribed by the Minister for a total consideration, as determined for the purposes of Part IX of the Federal Act, of not more than $4, and

           ii.  are ready for immediate consumption.

    6.  Newspapers that satisfy the conditions prescribed by the Minister.

Application to Federal Minister

   (4)  An eligible purchaser to whom an amount may be paid or credited under subsection (2) may apply to the Federal Minister for payment of the amount if the amount is not paid or credited by the supplier.

Federal Minister may pay or credit eligible purchaser an amount equal to tax

   (5)  The Federal Minister may, on behalf of the Crown in right of Ontario, pay or credit to an eligible purchaser an amount equal to,

  (a)  the amount of tax payable under section 212.1 of the Federal Act in respect of the importation of a qualifying property by the eligible purchaser; or

  (b)  the amount of tax payable under section 218.1 or Division IV.1 of Part IX of the Federal Act by the eligible purchaser in respect of a qualifying property,

           (i)  that is delivered, or the physical possession of which is transferred, to the eligible purchaser in Ontario, or

          (ii)  that is brought by the eligible purchaser into Ontario.

Deadline for refund

   (6)  The Federal Minister shall, on behalf of the Crown in right of Ontario, pay an amount to which an eligible purchaser is entitled under subsection (4) or (5) if the eligible purchaser makes an application for the amount not more than four years after the day the tax under Part IX of the Federal Act became payable.

Form of application

   (7)  An application under subsection (4) must be made in the form and manner required by the Federal Minister.

Payment to supplier

   (8)  If a supplier pays or credits an amount under subsection (2), the Federal Minister may, on behalf of the Crown in right of Ontario, pay or credit an equal amount to the supplier.

Deduction or set-off from payment to Ontario

   (9)  If the Federal Minister pays or credits an amount under subsection (5), (6) or (8), the Minister of Finance for Canada may deduct from or set off against a payment made or to be made by the Crown in right of Canada to the Crown in right of Ontario an amount equal to the amount that is paid or credited.

Reduction of revenue

   (10)  A payment or credit under this section in respect of qualifying property shall be considered to be a reduction of the revenue which would otherwise be payable to the Crown in right of Ontario under the agreement referred to in section 50.

Regulations

Transitional

   52.  (1)  The Minister may make regulations providing for transitional matters which, in the opinion of the Minister, are necessary or desirable,

  (a)  to facilitate the implementation of the tax in respect of Ontario imposed under Part IX of the Excise Tax Act (Canada);

  (b)  to facilitate the transition from a tax imposed under this Act to a tax imposed under Part IX of the Excise Tax Act (Canada).

Same

   (2)  Without limiting the generality of subsection (1), the Minister may make regulations,

  (a)  prescribing for the purposes of any provision in this Act a date that is later than a date set out,

           (i)  in the provision in this Act, or

          (ii)  in a regulation previously made under this clause;

  (b)  providing for the rebate in whole or in part of tax paid under section 2 on construction materials that are purchased by a contractor, held in the contractor's inventory at the end of the day on June 30, 2010 and used after that day in a contract to which the tax under subsection 165 (2) of the Excise Tax Act (Canada) applies to repair or improve a residential building, and prescribing the conditions that must be satisfied for the rebate to be made, including,

           (i)  persons to whom rebates are payable,

          (ii)  the manner of determining the amount of a rebate,

         (iii)  the class or classes of residential property that qualify for the purposes of the rebate,

         (iv)  requirements regarding construction material held in inventory at the end of the day on June 30, 2010,

          (v)  requiring that all applications for rebates must be made to the Minister before January 1, 2011, and

         (vi)  requirements with respect to the nature of the services provided under the contract under which the construction material is used.

Prescribed date applies

   (3)  If the Minister prescribes a date under clause (2) (a), the prescribed date applies for all purposes instead of the date it replaces.

Other matters

   (4)  The Minister may make regulations prescribing additional requirements that apply to suppliers relating to point of sale rebates under subsection 51 (2).

Consequential Amendments

SARS Assistance and Recovery Strategy Act, 2003

   18.  Part II (section 13) of the SARS Assistance and Recovery Strategy Act, 2003 is repealed.

Commencement

Commencement

   19.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Ontario Tax Plan for More Jobs and Growth Act, 2009 receives Royal Assent.

Same

   (2)  Section 5 comes into force on a day to be named by proclamation of the Lieutenant Governor.

Schedule S
Securities Act

   1.  (1)  Subsection 3 (2) of the Securities Act is amended by striking out "14 members" at the end and substituting "15 members".

   (2)  Subsection 3 (5) of the Act is amended by striking out "one or two members as Vice-Chairs" at the end and substituting "up to three members as Vice-Chairs".

   2.  Part II (section 4) of the Act is repealed.

   3.  (1)  Subsection 29 (3) of the Act is repealed and the following substituted:

Automatic suspension, representative ceasing to represent registrant

   (3)  The registration of a representative with respect to a registrant that is a registered dealer, registered advisor or registered investment fund manager is suspended at the time the representative ceases, by reason of any of the following events, to have the authority to act on behalf of the registrant in a capacity that requires the representative to be registered:

    1.  The employment of the representative by the registrant is terminated.

    2.  The representative's employment functions change.

    3.  The partnership or agency relationship of the representative with the registrant changes or is terminated.

   (2)  Subsection 29 (6) of the Act is repealed and the following substituted:

Exception

   (6)  Despite subsection (5), if a proceeding is commenced under section 122 or 128 or under the rules of a self-regulatory organization with respect to a registrant, or a hearing is commenced under section 127 with respect to the activities of the registrant, the registrant's registration continues to remain suspended until an order has been made by the court or a decision is made by the Commission or self-regulatory organization in the proceeding or hearing.

   4.  Paragraph 3 of section 31 of the Act is repealed and the following substituted:

    3.  Refuse to reinstate the registration of the person or company after the registration is suspended.

   5.  (1)  Section 102 of the Act is amended by striking out the portion before the definition of "acquiror" and substituting the following:

Definitions

   102.  For the purposes of this section and sections 102.1 and 102.2,

.     .     .     .     .

   (2)  Section 102 of the Act is amended by adding the following subsections:

Application of ss. 90 and 91

   (2)  Subsections 90 (1), (2) and (4) and section 91 apply for the purposes of this section and sections 102.1 and 102.2 as if the references in subsections 90 (1), (2) and (4) and section 91 to "offeror" were references to "acquiror".

Joint offers

   (3)  For the purposes of this section and sections 102.1 and 102.2, if an acquiror and one or more persons or companies acting jointly or in concert with the acquiror acquire securities, the securities are deemed to be acquired by the acquiror.

   6.  (1)  Subsection 138.8 (4) of the Act is repealed and the following substituted:

Copies to be sent to the Commission

   (4)  A copy of the application for leave to proceed and any affidavits and factums filed with the court shall be sent to the Commission when filed.

   (2)  Section 138.8 of the Act is amended by adding the following subsections:

Requirement to provide notice

   (5)  The plaintiff shall provide the Commission with notice in writing of the date on which the application for leave is scheduled to proceed, at the same time such notice is given to each defendant.

Same, appeal of leave decision

   (6)  If any party appeals the decision of the court with respect to whether leave to commence an action under section 138.3 is granted,

  (a)  each party to the appeal shall provide a copy of its factum to the Commission when it is filed; and

  (b)  the appellant shall provide the Commission with notice in writing of the date on which the appeal is scheduled to be heard, at the same time such notice is given to each respondent.

   7.  (1)  Section 138.9 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)  provide the Commission with notice in writing of the date on which the trial of the action is scheduled to proceed, at the same time such notice is given to each defendant.

   (2)  Section 138.9 of the Act is amended by adding the following subsection:

Appeal

   (2)  If any party to an action under section 138.3 appeals the decision of the court,

  (a)  each party shall provide a copy of its factum to the Commission when it is filed; and

  (b)  the appellant shall provide the Commission with notice in writing of the date on which the appeal is scheduled to be heard, at the same time such notice is given to each respondent.

   8.  Section 138.12 of the Act is repealed and the following substituted:

Power of the Commission

   138.12  The Commission may intervene in an action under section 138.3, in an application for leave to commence the action under section 138.8 and in any appeal from the decision of the court in the action or with respect to whether leave is granted to commence the action.

   9.  The French version of clause 143 (2) (a.0.1) of the Act is amended by striking out "les questions" and substituting "traiter des questions".

Commencement

   10.  This Schedule comes into force on the day the Ontario Tax Plan for More Jobs and Growth Act, 2009 receives Royal Assent.

Schedule T
Succession Duty Legislation repeal Act, 2009

Repeal of succession duty legislation

The Succession Duty Act

   1.  (1)  The Succession Duty Act, being chapter 449 of the Revised Statutes of Ontario, 1970, is repealed to the extent it continues to be in force under section 1 of The Succession Duty Repeal Act, 1979 and applies in respect of a person who died before April 11, 1979.

The Succession Duty Act Supplementary Provisions Act, 1980

   (2)  The Succession Duty Act Supplementary Provisions Act, 1980 is repealed.

Consequential amendments

Land Titles Act

   2.  (1)  Paragraph 1 of subsection 44 (1) of the Land Titles Act is amended by striking out "and succession duties".

Same

   (2)  Section 126 of the Act is repealed.

Registry Act

   3.  Subsections 53 (3), (4), (5), (6) and (7) of the Registry Act are repealed.

Succession Law Reform Act

   4.  The definition of "net value" in subsection 45 (4) of the Succession Law Reform Act is amended by striking out "including succession duty" at the end.

Trustee Act

   5.  (1)  Clause 49 (1) (a) of the Trustee Act is amended by striking out "succession and inheritance taxes or duties" and substituting "and inheritance taxes".

Same

   (2)  The English version of clause 49 (1) (b) of the Act is amended by striking out "succession and inheritance taxes or duties" and substituting "and inheritance taxes".

Commencement and Short Title

Commencement

   6.  The Act set out in this Schedule comes into force on the day the Ontario Tax Plan for More Jobs and Growth Act, 2009 receives Royal Assent.

Short title

   7.  The short title of the Act set out in this Schedule is the Succession Duty Legislation Repeal Act, 2009.

Schedule U
Taxation Act, 2007

   1.  The definition of "lowest tax rate" in subsection 3 (1) of the Taxation Act, 2007 is repealed and the following substituted:

"lowest tax rate" means,

  (a)  6.05 per cent in respect of taxation years ending before January 1, 2010, and

  (b)  5.05 per cent in respect of taxation years ending after December 31, 2009; ("taux d'imposition le moins élevé")

   2.  (1)  Clause 13 (1) (a) of the Act is repealed and the following substituted:

  (a)  for a taxation year ending before January 1, 2010, 38.4828 per cent of the amount determined in respect of the individual for the year under paragraph 121 (a) of the Federal Act;

(a.1) for a taxation year ending after December 31, 2009, 33.75 per cent of the amount determined in respect of the individual for the year under paragraph 121 (a) of the Federal Act; and

   (2)  Clause 13 (2) (b) of the Act is amended by striking out "42.84 per cent" and substituting "35.6073 per cent".

   (3)  Clause 13 (2) (c) of the Act is amended by striking out "46.8501 per cent" and substituting "38.9403 per cent".

   (4)  Clause 13 (2) (d) of the Act is amended by striking out "51.2658 per cent" and substituting "42.6105 per cent".

   3.  The definition of "B" in section 14 of the Act is repealed and the following substituted:

  "B"  is the percentage in paragraph 117 (2) (d) of the Federal Act, and

   4.  Subsection 16 (1) of the Act is repealed and the following substituted:

Ontario surtax

   (1)  The amount of an individual's surtax for a taxation year is the sum of,

  (a)  20 per cent of the amount, if any, by which the gross tax amount of the individual for the year exceeds,

           (i)  $4,257 if the year ends before January 1, 2010, or

          (ii)  $4,006 if the year ends after December 31, 2009; and

  (b)  36 per cent of the amount, if any, by which the gross tax amount of the individual for the year exceeds,

           (i)  $5,370 if the year ends before January 1, 2010, or

          (ii)  $5,127 if the year ends after December 31, 2009.

   5.  (1)  Paragraph 4 of subsection 23 (1) of the Act is repealed and the following substituted:

    4.  Subclauses 16 (1) (a) (ii) and (b) (ii).

   (2)  Subsection 23 (1) of the Act is amended by adding the following paragraphs:

    6.  Subsection 101.1 (3).

    7.  Subsection 101.2 (3).

    8.  Subsection 104.11 (5).

   (3)  Section 23 of the Act is amended by adding the following subsection:

Exception

   (1.1)  Subsection (1) does not apply to an amount in a provision listed in any of paragraphs 4, 6, 7 and 8 of subsection (1) for the 2010 taxation year.

   6.  Subsection 29 (2) of the Act is repealed and the following substituted:

Basic rate of tax

   (2)  A corporation's basic rate of tax for a taxation year is the sum of,

  (a)  14 per cent multiplied by the ratio of the number of days in the taxation year that are before July 1, 2010 to the total number of days in the taxation year;

  (b)  12 per cent multiplied by the ratio of the number of days in the taxation year that are after June 30, 2010 and before July 1, 2011 to the total number of days in the taxation year;

   (c)  11.5 per cent multiplied by the ratio of the number of days in the taxation year that are after June 30, 2011 and before July 1, 2012 to the total number of days in the taxation year;

  (d)  11 per cent multiplied by the ratio of the number of days in the taxation year that are after June 30, 2012 and before July 1, 2013 to the total number of days in the taxation year; and

  (e)  10 per cent multiplied by the ratio of the number of days in the taxation year that are after June 30, 2013 to the total number of days in the taxation year.

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

Small business deduction rate

   (4)  A corporation's small business deduction rate for a taxation year is the sum of,

  (a)  8.5 per cent multiplied by the ratio of the number of days in the taxation year that are before July 1, 2010 to the total number of days in the taxation year;

  (b)  7.5 per cent multiplied by the ratio of the number of days in the taxation year that are after June 30, 2010 and before July 1, 2011 to the total number of days in the taxation year;

   (c)  7 per cent multiplied by the ratio of the number of days in the taxation year that are after June 30, 2011 and before July 1, 2012 to the total number of days in the taxation year;

  (d)  6.5 per cent multiplied by the ratio of the number of days in the taxation year that are after June 30, 2012 and before July 1, 2013 to the total number of days in the taxation year; and

  (e)  5.5 per cent multiplied by the ratio of the number of days in the taxation year that are after June 30, 2013 to the total number of days in the taxation year.

   8.  Subsection 32 (3) of the Act is repealed and the following substituted:

Small business surtax rate

   (3)  A corporation's small business surtax rate for a taxation year is 4.25 per cent multiplied by the ratio of the number of days in the taxation year before July 1, 2010 to the total number of days in the taxation year.

   9.  Subsection 33 (1) of the Act is repealed and the following substituted:

Tax credit for manufacturing, processing, etc.

   (1)  A corporation may, in computing the amount of its tax payable under this Division for a taxation year ending before July 1, 2013, deduct a tax credit calculated using the formula,

A × B × X

in which,

  "A"  is the amount of the corporation's tax credit base for the year,

  "B"  is the corporation's Ontario domestic factor for the year, and

  "X"  is the sum of,

         (a)  0.02 multiplied by the ratio of the number of days in the taxation year that are before July 1, 2011 to the total number of days in the taxation year,

         (b)  0.015 multiplied by the ratio of the number of days in the taxation year that are after June 30, 2011 and before July 1, 2012  to the total number of days in the taxation year, and

          (c)  0.01 multiplied by the ratio of the number of days in the taxation year that are after June 30, 2012 and before July 1, 2013.

   10.  The definition of "C" in the definition of "A" in subsection 50 (2) of the Act is amended by striking out "without reference to section 39, subsection 47 (3) and section 53" at the end and substituting "without reference to section 39, subsection 47 (3), and sections 53 and 53.2".

   11.  The definition of "D" in subsection 53.1 (4) of the Act is amended by striking out "deducted under this section" and substituting "deducted under section 53.2".

   12.  Subsection 55 (1) of the Act is repealed and the following substituted:

Corporate minimum tax liability, taxation years ending before July 1, 2010

   (1)  For a taxation year that ends before July 1, 2010, and except as otherwise provided under subsection (2), every corporation subject to tax under Division B of this Part is liable to pay to the Crown in right of Ontario a corporate minimum tax for the year as determined under this Division if,

  (a)  the amount of the corporation's total assets at the end of the year exceeds $5 million or the amount of the corporation's total revenue for the year exceeds $10 million; or

  (b)  the corporation is associated with one or more corporations during the year and,

           (i)  the sum of the total assets of the corporation as of the end of the taxation year and of each associated corporation as of the end of the associated corporation's last taxation year ending in the corporation's taxation year exceeds $5 million, or

          (ii)  the sum of the total revenue of the corporation for the taxation year and of each associated corporation for the last taxation year of the associated corporation ending in the corporation's taxation year exceeds $10 million.

Same, taxation years ending after June 30, 2010

   (1.1)  For a taxation year that ends after June 30, 2010, and except as otherwise provided under subsection (2), every corporation subject to tax under Division B of this Part is liable to pay to the Crown in right of Ontario a corporate minimum tax for the year as determined under this Division if,

  (a)  the amount of the corporation's total assets at the end of the year equals or exceeds $50 million and the amount of the corporation's total revenue for the year equals or exceeds $100 million; or

  (b)  the corporation is associated with one or more corporations during the year and,

           (i)  the sum of the total assets of the corporation as of the end of the taxation year and of each associated corporation as of the end of the associated corporation's last taxation year ending in the corporation's taxation year equals or exceeds $50 million, and

          (ii)  the sum of the total revenue of the corporation for the taxation year and of each associated corporation for the last taxation year of the associated corporation ending in the corporation's taxation year equals or exceeds $100 million.

   13.  Subsection 56 (1) of the Act is repealed and the following substituted:

Calculation of corporate minimum tax

   (1)  The corporate minimum tax payable by a corporation for a taxation year under this Division is the amount calculated using the formula,

(I – L) × A × R

in which,

    "I"  is the amount of the corporation's adjusted net income, if any, for the year,

  "L"  is the amount of the corporation's eligible losses, if any, for the year,

  "A"  is the corporation's Ontario allocation factor for the year, and

  "R"  is the sum of,

         (a)  0.04 multiplied by the ratio of the number of days in the year that are before July 1, 2010 to the total number of days in the year, and

         (b)  0.027 multiplied by the ratio of the number of days in the year that are after June 30, 2010 to the total number of days in the year.

   14.  Subsection 84 (1) of the Act is amended by adding the following paragraph:

12.1 An Ontario property tax credit under section 101.1 or 101.2.

   15.  (1)  Subsections 89 (2), (3), (4) and (5) of the Act are repealed and the following substituted:

Amount of tax credit

   (2)  The amount of a taxpayer's apprenticeship training tax credit for a taxation year is the total of all amounts each of which is in respect of a qualifying apprenticeship for the year and each of which is the sum of "A" and "B" where,

  "A"  is the lesser of,

         (a)  the sum of,

                   (i)  the product obtained by multiplying the taxpayer's specified percentage for the taxation year in respect of eligible expenditures incurred before March 27, 2009 by the taxpayer's eligible expenditures incurred during the year and before March 27, 2009 in respect of the qualifying apprenticeship, and

                  (ii)  the product obtained by multiplying the taxpayer's specified percentage for the taxation year in respect of eligible expenditures incurred after March 26, 2009 by the taxpayer's eligible expenditures incurred during the year and after March 26, 2009 in respect of the qualifying apprenticeship, and

         (b)  the amount calculated under subsection (3), and

  "B"  is an amount calculated by multiplying the amount of government assistance repaid by the taxpayer in the year by the percentage determined under subsection (3.1), to the extent that the repayment does not exceed the amount of the government assistance in respect of the qualifying apprenticeship that,

         (a)  has not been repaid in a previous year, and

         (b)  may reasonably be considered to have reduced the amount in respect of an apprenticeship training tax credit that would otherwise have been allowed to the taxpayer under this Act, the Corporations Tax Act or the Income Tax Act in respect of the qualifying apprenticeship.

Specified percentage, eligible expenditures incurred before March 27, 2009

   (2.1)  For the purposes of subclause (a) (i) of the definition of "A" in subsection (2), a taxpayer's specified percentage for the taxation year in respect of eligible expenditures incurred before March 27, 2009 is the following:

    1.  25 per cent if the total of all salaries or wages paid by the taxpayer in the previous taxation year is $600,000 or more.

    2.  The percentage determined by adding 25 per cent and the percentage calculated using the following formula, if the total of all salaries or wages paid by the taxpayer in the previous taxation year is greater than $400,000 but less than $600,000:

0.05 × [1 – (AA/200,000)]

in which,

      "AA"  is the total amount of salaries or wages paid by the taxpayer in the previous taxation year that is in excess of $400,000.

    3.  30 per cent in any other case.

Specified percentage, eligible expenditures incurred after March 26, 2009

   (2.2)  For the purposes of subclause (a) (ii) of the definition of "A" in subsection (2), a taxpayer's specified percentage for the taxation year in respect of eligible expenditures incurred after March 26, 2009 is the following:

    1.  35 per cent if the total of all salaries or wages paid by the taxpayer in the previous taxation year is $600,000 or more.

    2.  The percentage determined by adding 35 per cent and the percentage calculated using the following formula, if the total of all salaries or wages paid by the taxpayer in the previous taxation year is greater than $400,000 but less than $600,000:

0.10 × [1 – (BB/200,000)]

in which,

      "BB"  is the total amount of salaries or wages paid by the taxpayer in the previous taxation year that is in excess of $400,000.

    3.  45 per cent in any other case.

Amount

   (3)  For the purposes of clause (b) of the definition of "A" in subsection (2), the amount is calculated using the formula,

($5,000 × C/Y) + ($10,000 × D/Y)

in which,

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

         (a)  before March 27, 2009, and

         (b)  within the first 36 months of the commencement of the apprentice in the apprenticeship program,

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

         (a)  after March 26, 2009, and

         (b)  within the first 48 months of the commencement of the apprentice in the apprenticeship program, and

  "Y"  is 365 days or, if the taxation year includes February 29, 366 days.

Same

   (3.1)  For the purposes of determining the amount of "B" in subsection (2),

  (a)  if the government assistance was received in respect of eligible expenditures incurred before March 27, 2009, the percentage is the specified percentage that would be determined under subsection (2.1) for the taxation year in which the government assistance was received; and

  (b)  if the government assistance was received in respect of eligible expenditures incurred after March 26, 2009, the percentage is the specified percentage that would be determined under subsection (2.2) for the taxation year in which the government assistance was received.

   (2)  Subsection 89 (6) of the Act is amended by striking out "subsections (4) and (5)" and substituting "subsections (2.1) and (2.2)".

   (3)  Paragraph 1 of subsection 89 (7) of the Act is repealed.

   (4)  Subparagraphs 1 iii and iv of subsection 89 (9) of the Act are repealed and the following substituted:

          iii.  the amount is incurred before March 27, 2009 and relates to services provided by the apprentice to the taxpayer during the first 36 months of the apprenticeship program and does not relate to services performed before the commencement or after the end of the apprenticeship program, and

          iv.  the amount is incurred after March 26, 2009 and relates to services provided by the apprentice to the taxpayer during the first 48 months of the apprenticeship program and does not relate to services performed before the commencement or after the end of the apprenticeship program.

   (5)  Subparagraph 2 ii of subsection 89 (9) of the Act is amended by striking out "before January 1, 2015, and".

   (6)  Subparagraph 2 iii of subsection 89 (9) of the Act is repealed and the following substituted:

          iii.  the fee is incurred before March 27, 2009 and the fee relates to services provided by the apprentice to the taxpayer during the first 36 months of the apprenticeship program and does not relate to services performed before the commencement or after the end of the apprenticeship program, and

          iv.  the fee is incurred after March 26, 2009 and the fee relates to services provided by the apprentice to the taxpayer during the first 48 months of the apprenticeship program and does not relate to services performed before the commencement or after the end of the apprenticeship program.

   (7)  Clause 89 (14) (a) of the Act is amended by striking out "the definition of "C" in subsection (3)" and substituting "the definitions of "C" and "D" in subsection (3)".

   16.  (1)  The definition of "film studio" in subsection 91 (19) of the Act is repealed and the following substituted:

"film studio" means,

  (a)  a building in which sets are used for the purpose of making film or television productions and sound, light and human access are controlled, or

  (b)  a building in which activities are carried out directly in support of animation if the production is an animated production or contains animated segments; ("studio")

   (2)  Subsection 91 (19) of the Act is amended by adding the following definition:

"principal photography" includes key animation if the film or television production is an animated production or contains animated segments; ("principaux travaux de prise de vues")

   (3)  The definition of "regional Ontario production" in subsection 91 (19) of the Act is amended by striking out "or" at the end of clause (a) and by repealing clause (b) and substituting the following:

  (b)  for which the principal photography in Ontario is done in whole or in part outside a film studio, but only if,

           (i)  the number of location days in the Greater Toronto Area for the production does not exceed 15 per cent of the total number of location days in respect of the production, and

          (ii)  the number of location days for the production is at least five or, in the case of a production that is a television series, is at least equal to the number of episodes in the production, or

   (c)  for which the principal photography in Ontario consists entirely of animation, but only if no more than 15 per cent of the principal photography in Ontario is done in the Greater Toronto Area. ("production régionale ontarienne")

   (4)  The definition of "Toronto location day" in subsection 91 (19) of the Act is repealed.

   17.  (1)  Subsection 92 (3) of the Act is amended by striking out "and" at the end of clause (a) and by repealing clause (b) and substituting the following:

  (b)  25 per cent of the portion of its qualifying Ontario labour expenditure in respect of the production for the year that relates to expenditures incurred after December 31, 2007 and before July 1, 2009; and

   (c)  25 per cent of the portion of its qualifying production expenditure in respect of the production for the year that relates to expenditures incurred after June 30, 2009.

   (2)  Subsection 92 (4) of the Act is repealed and the following substituted:

Exception, prescribed tax credit rate

   (4)  If a percentage is prescribed for the purposes of clause (3) (b) or (c), the prescribed percentage and not the percentage set out in that clause shall apply in determining an amount under that clause in respect of the period to which the prescribed percentage applies.

   (3)  Section 92 of the Act is amended by adding the following subsections:

Qualifying production expenditure

   (5.1)  For the purposes of this section, a corporation's qualifying production expenditure for a taxation year in respect of an eligible production is the amount, if any, by which "A" exceeds "B" where,

  "A"  is the sum of,

         (a)  the corporation's eligible wage expenditure for the year or a previous taxation year in respect of the production,

         (b)  the corporation's eligible service contract expenditure for the year or a previous taxation year in respect of the production,

          (c)  the amount determined under subsection (5.5) for the year or a previous taxation year in respect of the production, and

         (d)  the corporation's eligible tangible property expenditure for the year or a previous taxation year in respect of the production, and

  "B"  is the sum of,

         (a)  all relevant assistance in respect of the production,

                   (i)  that may reasonably be considered to be directly attributable to any amount included in the determination of "A" for the year,

                  (ii)  that, when it was required to file its return under this Act for the year, the corporation or any other person or partnership had received, was entitled to receive or was reasonably expected to receive, to the extent the assistance had not been repaid pursuant to a legal obligation to do so, and

                 (iii)  that has not caused a reduction of any amount included in the determination of "A" for the year in respect of the production,

  (b)  the sum of all amounts, each of which is the corporation's qualifying production expenditure in respect of the production for a previous taxation year before the end of which the principal photography of the production began, and

   (c)  if the corporation is a parent, the sum of all amounts each of which is determined in respect of the production under subsection (5.5) as a consequence of an agreement referred to in that subsection between the corporation and the subsidiary corporation.

Eligible wage expenditure

   (5.2)  For the purposes of this section and subject to subsection (5.8), a qualifying corporation's eligible wage expenditure for a taxation year in respect of an eligible production is an amount equal to the salary and wages that are,

  (a)  reasonable in the circumstances;

  (b)  directly attributable to the production;

   (c)  incurred by the corporation in the year or the previous taxation year;

  (d)  related to services rendered in Ontario for the stages of production of the production from the final script stage to the end of the post-production stage; and

  (e)  paid by it in the year or within 60 days after the end of the year to the corporation's employees who were Ontario-based individuals at the time the payments were made (other than amounts incurred in the previous year that were paid within 60 days after the end of the previous year).

Eligible service contract expenditure

   (5.3)  For the purposes of this section and subject to subsection (5.8), a qualifying corporation's eligible service contract expenditure for a taxation year in respect of an eligible production is the total of all amounts each of which is the cost of a contract for services that is,

  (a)  reasonable in the circumstances;

  (b)  directly attributable to the production;

   (c)  incurred by the corporation in the year or the previous taxation year;

  (d)  related to services rendered in Ontario in the year or the previous year to the corporation for the stages of production of the production, from the final script stage to the end of the post-production stage;

  (e)  paid by it in the year or within 60 days after the end of the year (other than amounts incurred in the previous taxation year that were paid within 60 days after the end of the previous year); and

    (f)  paid to a person or partnership that carries on a business in Ontario through a permanent establishment and that is,

           (i)  an Ontario-based individual at the time the amount is paid and who is not an employee of the corporation, provided the services are personally rendered in Ontario in respect of the production by the individual or the individual's employees at a time when they were Ontario-based individuals,

          (ii)  another corporation that is a taxable Canadian corporation, provided the services are personally rendered in Ontario in respect of the production by the other corporation's employees at a time when they were Ontario-based individuals,

         (iii)  another corporation that is a taxable Canadian corporation, all the issued and outstanding shares of the capital stock of which (except directors' qualifying shares) belong to an Ontario-based individual and the activities of which consist principally of the provision of the individual's services, or

         (iv)  a partnership, each member of which is an Ontario-based individual or a taxable Canadian corporation, provided the services are personally rendered in Ontario in respect of the production by an Ontario-based individual who is a member of the partnership or by the partnership's employees at a time when they were Ontario-based individuals.

Same, security services provided by off-duty police officers

   (5.4)  Subject to clauses (5.3) (a) to (e) and subsection (5.8), an amount paid in a taxation year or a previous taxation year in respect of an eligible production to a trade union representing members of the Ontario Provincial Police Force or a municipal police force in Ontario for the provision of security services on the set of the production may be included in a corporation's eligible service contract expenditure for the taxation year in respect of the production.

Parent-subsidiary amounts

   (5.5)  If the corporation has a parent that is a taxable Canadian corporation and if the corporation and the parent have agreed that paragraph (c) of the definition of "Canadian labour expenditure" in subsection 125.5 (1) of the Federal Act applies in respect of the production, the amount determined under this subsection is equal to the reimbursement made by the corporation in the year, or within 60 days after the end of the year (other than amounts incurred by the parent in the previous year that were reimbursed by the corporation within 60 days after the end of the previous year), of an amount that was incurred by the parent in a particular taxation year of the parent in respect of the production, if the amount would be included in the corporation's eligible wage expenditure or eligible service contract expenditure in respect of the production for the particular taxation year if the corporation had had that particular taxation year and the expenditure had been incurred by the corporation for the same purpose as it was incurred by the parent and paid at the same time and to the same person or partnership as it was paid by the parent.

Eligible tangible property expenditure

   (5.6)  For the purposes of this section and subject to subsections (5.7) and (5.8), a qualifying corporation's eligible tangible property expenditure for a taxation year in respect of an eligible production is the sum of the amounts described in the following paragraphs:

    1.  If tangible property is acquired by the corporation, the total of all amounts each of which is an amount calculated in respect of a particular tangible property using the formula,

(A × B × C)/365

in which,

         "A"  is the undepreciated capital cost of the property at the beginning of the year or, where the property was acquired in the year, the cost of the property,

         "B"  is the rate applicable to the property under Schedule II of the Federal regulations, and

         "C"  is the number of days in the taxation year that the tangible property was available for immediate use in respect of the eligible production in Ontario.

    2.  If tangible property is leased by the corporation, the total of all amounts each of which is the proportion of the lease cost attributable to the use in Ontario of the property in the taxation year in the course of completing the eligible production. 

Same

   (5.7)  An expenditure is not included in the eligible tangible property expenditure of a qualifying corporation for a taxation year with respect to an eligible production unless all of the following conditions are satisfied:

    1.  The property is used in Ontario in a manner that is directly attributable to the eligible production.

    2.  The property is used during the stages of production of the production, from the final script stage to the end of the post-production stage.

    3.  The expenditure is incurred by the corporation in the year or the previous taxation year.

    4.  The expenditure is paid by the corporation in the year or within 60 days after the end of the year (other than amounts incurred in the previous taxation year that were paid within 60 days after the end of the previous year).

    5.  The expenditure is reasonable in the circumstances.

    6.  The expenditure is paid to a person or partnership,

            i.  that is ordinarily engaged in the business of selling or leasing tangible property of the type of tangible property acquired or leased by the corporation,

           ii.  that carries on business through a permanent establishment in Ontario,

          iii.  that is a taxable Canadian corporation or an Ontario-based individual at the time the amount is paid or a partnership comprised entirely of members that are taxable Canadian corporations or Ontario-based individuals at the time the amount is paid,

          iv.  in the case of an individual, who is not an employee of the qualifying corporation, and

           v.  in the case of a partnership, whose members are not employees of the qualifying corporation.

Same

   (5.8)  A corporation's qualifying production expenditure in respect of an eligible production does not include expenditures incurred for or on account of,

  (a)  meals and entertainment (other than reasonable expenditures for food and non-alcoholic beverages provided to individuals working on an eligible production at a studio or location set on a day filming is taking place);

  (b)  alcoholic beverages;

   (c)  hotel and living expenses;

  (d)  remuneration determined by reference to profits or revenues;

  (e)  an amount to which section 37 of the Federal Act applies; or

    (f)  for greater certainty, an amount that is not a production cost (including an amount in respect of advertising, marketing, promotion, market research) or an amount related in any way to another film or video production.

   (4)  Subsection 92 (13) of the Act is amended by adding the following definitions:

"Ontario-based individual" means, in relation to an eligible production, an individual who was resident in Ontario at the end of the calendar year immediately before the calendar year in which principal photography for the production commences; ("particulier domicilié en Ontario")

"parent" means a corporation that owns all the issued and outstanding shares of the capital stock (except directors' qualifying shares) of another corporation; ("société mère")

"relevant assistance" means an amount that satisfies the prescribed conditions; ("aide pertinente")

"tangible property" means property that can be seen, weighed, measured, felt or touched or that is in any way perceptible to the senses, and is deemed to include software. ("bien corporel")

   (5)  Section 92 of the Act is amended by adding the following subsection:

Inflation of tax credit claim

   (14)  Despite any other provision in this section, if a qualifying corporation has incurred expenditures that are included in its qualifying production expenditure for the year in respect of an eligible production pursuant to a contract with a person or partnership with which the corporation does not deal at arm's length, and the Ontario Minister reasonably believes that one of the principal purposes of the existence of the contract was to increase the amount of the corporation's tax credit under this section, the amount of the tax credit will be reduced by the amount of the increase.

   18.  (1)  Subsections 93 (1), (2), (3) and (4) of the Act are repealed and the following substituted:

Ontario interactive digital media tax credit

   (1)  A corporation that complies with the requirements of this section or section 93.1 or 93.2 may claim an amount for the year in respect of and not exceeding the corporation's Ontario interactive digital media tax credit for the year.

Total amount of tax credit under this section and ss. 93.1 and 93.2

   (1.1)  The amount of a corporation's Ontario interactive digital media tax credit for a taxation year is the sum of the credits determined under this section and sections 93.1 and 93.2 for the year.

Amount of tax credit under this section

   (2)  Subject to subsections (2.4) to (2.6), the amount of a qualifying corporation's credit under this section for a taxation year is the sum of the corporation's eligible credits for the year as determined under this section in respect of eligible products.

Non-specified products, other than qualifying small corporations

   (2.1)  A qualifying corporation's eligible credit for a taxation year in respect of an eligible product that is not a specified product is, if the corporation is not a qualifying small corporation, the sum of,

  (a)  20 per cent of the portion of its qualifying expenditure in respect of the product for the year that relates to expenditures incurred after March 23, 2006 and before March 26, 2008;

  (b)  25 per cent of the portion of its qualifying expenditure in respect of the product for the year that relates to expenditures incurred after March 25, 2008 and before March 27, 2009; and

   (c)  40 per cent of the portion of its qualifying expenditure in respect of the product for the year that relates to expenditures incurred after March 26, 2009.

Non-specified products, qualifying small corporations

   (2.2)  A qualifying corporation's eligible credit for a taxation year in respect of an eligible product that is not a specified product is, if the corporation is a qualifying small corporation, the sum of,

  (a)  20 per cent of the portion of its qualifying expenditure in respect of the product for the year that relates to expenditures incurred before March 24, 2006;

  (b)  30 per cent of the portion of its qualifying expenditure in respect of the product for the year that relates to expenditures incurred after March 23, 2006 and before March 27, 2009; and

   (c)  40 per cent of the portion of its qualifying expenditure in respect of the product for the year that relates to expenditures incurred after March 26, 2009.

Specified products

   (2.3)  A qualifying corporation's eligible credit for a taxation year in respect of an eligible product that is a specified product is the sum of,

  (a)  20 per cent of the portion of its qualifying expenditure in respect of the product for the year that relates to expenditures incurred after March 23, 2006 and before March 26, 2008;

  (b)  25 per cent of the portion of its qualifying expenditure in respect of the product for the year that relates to expenditures incurred after March 25, 2008 and before March 27, 2009; and

   (c)  35 per cent of the portion of its qualifying expenditure in respect of the product for the year that relates to expenditures incurred after March 26, 2009.

Claims not allowed under subs. (2.3) and s. 93.1

   (2.4)  A qualifying corporation's eligible credit under subsection (2.3) in respect of an eligible product is deemed to be nil for a particular taxation year if the corporation claims a credit under section 93.1 in respect of the eligible product for the year or any previous taxation year.

Claims not allowed under this section and s. 93.2

   (2.5)  Subject to subsection (2.6), a qualifying corporation's credit under this section in respect of an eligible product for a particular taxation year is deemed to be nil if the corporation claims a credit under section 93.2 in respect of the eligible product for the year.

Exception, transition to s. 93.2

   (2.6)  Subsection (2.5) does not apply in respect of a qualifying corporation for a particular taxation year if the corporation completes an eligible product in the year and the Ontario labour expenditure incurred in respect of the product includes expenditures that were incurred before the later of March 27, 2009 and the beginning of the first taxation year in which the corporation claimed a credit under section 93.2.

Qualifying expenditure

   (3)  The qualifying expenditure of a qualifying corporation for a taxation year is,

  (a)  in respect of an eligible product that is not a specified product, the amount of its eligible labour expenditure and eligible marketing and distribution expenditure for the year in respect of the product; and 

  (b)  in respect of an eligible product that is a specified product, the amount of its eligible labour expenditure for the year in respect of the product.

Eligible labour expenditure

   (4)  A qualifying corporation's eligible labour expenditure for an eligible product for a taxation year is equal to the amount, if any, by which the sum of "A" and "B" exceeds "C" where,

  "A"  is the Ontario labour expenditure, if any, incurred by the qualifying corporation in the year for the eligible product,

  "B"  is the sum of all amounts, if any, each of which is the Ontario labour expenditure incurred for the eligible product by the qualifying corporation in a previous taxation year or by a qualifying predecessor corporation before the disposition, merger or wind-up, as the case may be, to the extent that,

         (a)  if development of the product is completed before March 26, 2008, the expenditure is incurred in the 25-month period ending at the end of the month in which development of the eligible product is completed, or

         (b)  if development of the product is completed after March 25, 2008, the expenditure is incurred in the 37-month period ending at the end of the month in which development of the eligible product is completed, and

  "C"  is the sum of "D", "E" and "F" where,

         "D"  is the total of all amounts, if any, each of which is the eligible labour expenditure for the eligible product that was included in the determination of the amount of a tax credit claimed under this section, section 93.2 or section 43.11 of the Corporations Tax Act for a previous taxation year by the qualifying corporation or by a qualifying predecessor corporation,

         "E"  is the total of all amounts, if any, each of which is the eligible labour expenditure for the eligible product that was included in the determination of the amount of a credit claimed under section 93.2 for the year by the qualifying corporation, and

         "F"  is the total of all government assistance, if any, in respect of the Ontario labour expenditure for the eligible product that, on the qualifying corporation's filing-due date for the taxation year, the qualifying corporation or any other person or partnership has received, is entitled to receive or may reasonably expect to receive, to the extent that the government assistance has not been included in determining a corporation's eligible labour expenditures under section 93.2 or been repaid under a legal obligation to do so.

   (2)  The definition of "qualifying small corporation" in subsection 93 (14) of the Act is repealed and the following substituted:

"qualifying small corporation", in respect of a taxation year, means a qualifying corporation where,

  (a)  the amount of the corporation's total assets at the end of the year is equal to or less than $10 million and the amount of the corporation's total revenue for the year is equal to or less than $20 million; or

  (b)  the corporation is associated with one or more corporations during the year and,

           (i)  the sum of the total assets of the corporation as of the end of the taxation year and of each associated corporation as of the end of the associated corporation's last taxation year ending in the corporation's taxation year is equal to or less than $10 million, and

          (ii)  the sum of the total revenue of the corporation for the taxation year and of each associated corporation for the last taxation year of the associated corporation ending in the corporation's taxation year is equal to or less than $20 million. ("petite société admissible")

   (3)  Section 93 of the Act is amended by adding the following subsection:

Application of s. 55 (2)

   (19)  Paragraphs 1 to 6 of subsection 55 (2) apply for the purposes of determining if a qualifying corporation is a qualifying small corporation for the purposes of this section.

   19.  The Act is amended by adding the following sections:

Qualifying digital game corporation's tax credit

   93.1  (1)  The amount of a qualifying digital game corporation's tax credit under this section for a taxation year for the purposes of subsection 93 (1.1) is the total of all amounts each of which is the corporation's eligible credit for the year in respect of an eligible digital game.

Eligible credit, eligible digital games

   (2)  A qualifying digital game corporation's eligible credit for a taxation year in respect of an eligible digital game is 35 per cent of its qualifying labour expenditure in respect of the digital game for the year that relates to expenditures incurred after March 26, 2009.

Claims not allowed under s. 93 (2.3) and this section

   (3)  A qualifying digital game corporation's eligible credit under subsection (2) in respect of an eligible digital game is deemed to be nil for a particular taxation year if the corporation claims a credit under subsection 93 (2.3) in respect of the digital game for any previous taxation year.

Claims not allowed under this section and s. 93.2

   (4)  Subject to subsection (5), a qualifying digital game corporation cannot claim a credit under this section for a particular taxation year in respect of an eligible digital game if the corporation has claimed a credit under section 93.2 in respect of the digital game for the year.

Exception, transition to s. 93.2

   (5)  Subsection (4) does not apply if a qualifying digital game corporation claims a credit under section 93.2 in a taxation year, the 36-month period selected by the corporation for the purposes of paragraph 5 of subsection (9) ends in the year and the Ontario labour expenditure incurred in respect of the digital game includes expenditures that were incurred before the later of March 27, 2009 and the beginning of the first taxation year in which the corporation claimed a credit under section 93.2.

Qualifying labour expenditure

   (6)  The qualifying labour expenditure of a qualifying digital game corporation in respect of an eligible digital game for a taxation year is equal to the amount, if any, by which the sum of "A" and "B" exceeds "C" where,

  "A"  is the Ontario labour expenditure, if any, incurred by the qualifying digital game corporation in the year for the eligible digital game, to the extent that the expenditure is incurred in the 36-month period selected by the corporation for the purposes of paragraph 5 of subsection (9),

  "B"  is the sum of all amounts, if any, each of which is the Ontario labour expenditure incurred for the eligible digital game by the qualifying digital game corporation in a previous taxation year or by a qualifying predecessor corporation before the merger or wind-up, as the case may be, to the extent that the expenditure is incurred in the 36-month period selected by the corporation for the purposes of paragraph 5 of subsection (9), and

  "C"  is the sum of "D", "E" and "F" where,

         "D"  is the total of all amounts, if any, each of which is the eligible labour expenditure for the eligible digital game that was included in the determination of the amount of a tax credit claimed under section 93.2 for a previous taxation year by the qualifying digital game corporation, determined in accordance with the rules prescribed by regulation in respect of a digital game that is an eligible digital game for the purposes of section 93.2,

         "E"  is the total of all amounts, if any, each of which is the eligible labour expenditure for the eligible digital game that was included in the determination of the amount of a credit claimed under section 93.2 for the year by the qualifying digital game corporation, and

         "F"  is the total of all government assistance, if any, in respect of the Ontario labour expenditure for the eligible digital game that, on the qualifying digital game corporation's filing-due date for the taxation year, the qualifying digital game corporation or any other person or partnership has received, is entitled to receive or may reasonably expect to receive, to the extent that the government assistance has not been included in determining a corporation's eligible labour expenditures under section 93.2 or repaid under a legal obligation to do so.

Application for certificate

   (7)  Subsections 93 (8) to (13) apply for the purposes of this section, subject to any prescribed modifications, as if,

  (a)  each reference in those provisions to "this section" were read as a reference to this section;

  (b)  each reference in those provisions to a "qualifying corporation" were read as a reference to a "qualifying digital game corporation"; and

   (c)  each reference in those provisions to an "eligible product" were read as a reference to an "eligible digital game".

Definitions

   (8)  In this section,

"eligible digital game" means a product in respect of a qualifying digital game corporation that satisfies all of the conditions set out in subsection (9); ("jeu numérique admissible")

"government assistance" means assistance from a government, municipality or other public authority in any form, including a grant, subsidy, forgivable loan, deduction from tax and investment allowance, but not including a tax credit under subsection 93 (1); ("aide gouvernementale")

"Ontario labour expenditure" means the amount determined under the prescribed rules; ("dépense de main-d'oeuvre en Ontario")

"qualifying digital game corporation" means a Canadian corporation,

  (a)  that carries on through a permanent establishment in Ontario a business that includes the development of digital games,

  (b)  that is not controlled directly or indirectly in any manner by one or more corporations all or part of whose taxable income is exempt from tax under Part III of this Act,

   (c)  that is not a prescribed labour-sponsored venture capital corporation under the Federal regulations, and

  (d)  that is not a taxable Canadian corporation the primary activity of which is to provide the services of a single individual and all the issued and outstanding shares of the capital stock of which (other than directors' qualifying shares) are owned by that individual; ("société de jeux numériques admissible")

"qualifying predecessor corporation" means, in respect of a qualifying digital game corporation (the "transferee"), a corporation that was a qualifying digital game corporation in respect of an eligible digital game and that,

  (a)  merges with one or more corporations in accordance with section 87 of the Federal Act to form the transferee, or

  (b)  is wound up in accordance with subsection 88 (1) of the Federal Act. ("société remplacée admissible")

Eligible digital game

   (9)  The following are the conditions referred to in the definition of "eligible digital game" in subsection (8):

    1.  The product is an interactive digital media product as determined under the prescribed rules.

    2.  The product is a digital game in the opinion of the Ontario Media Development Corporation or, if another person is designated by the Minister of Culture, in the opinion of that person.

    3.  The product is developed in whole or in part by the qualifying digital game corporation under the terms of an agreement between the qualifying digital game corporation and a purchaser that is a corporation.

    4.  The product is developed for the purpose of sale or license by the purchaser to one or more persons, each of whom deals at arm's length with the purchaser.

    5.  The qualifying labour expenditure incurred by the qualifying digital game corporation within any period of 36 months that ends in the taxation year is not less than $1,000,000.

    6.  The qualifying digital game corporation or a qualifying predecessor corporation has not previously claimed a tax credit under this section in respect of the eligible digital game.

    7.  The product is not used primarily,

            i.  for interpersonal communication,

           ii.  to present or promote the qualifying digital game corporation, a qualifying predecessor corporation or the purchaser, or

          iii.  to present, promote or sell the products or services of the qualifying digital game corporation, a qualifying predecessor corporation or the purchaser.

    8.  The product is one for which public financial support would not be contrary to public policy in the opinion of the Ontario Media Development Corporation or, if another person is designated for the purposes of subsection 93 (8), as it applies for the purposes of this section, in the opinion of that person.

Specialized digital game corporation's credit

   93.2  (1)  The amount of a specialized digital game corporation's credit under this section for a taxation year for the purposes of subsection 93 (1.1) is 35 per cent of the corporation's qualifying labour expenditure in respect of eligible digital games for the year that relates to expenditures incurred after March 26, 2009.

Qualifying labour expenditure

   (2)  The qualifying labour expenditure of a specialized digital game corporation in respect of eligible digital games for a taxation year is the total of all amounts each of which is the eligible labour expenditure of the corporation in respect of an eligible digital game for the year.

Eligible labour expenditure

   (3)  The eligible labour expenditure of a specialized digital game corporation in respect of an eligible digital game for a taxation year is the amount, if any, by which "A" exceeds "B" where,

  "A"  is the corporation's Ontario labour expenditure for the year for eligible digital game activities in respect of the eligible digital game, and

  "B"  is the total of all government assistance, if any, in respect of the Ontario labour expenditure for eligible digital game activities in respect of the eligible digital game that, on the specialized digital game corporation's filing-due date for the year, the specialized digital game corporation or any other person or partnership has received, is entitled to receive or may reasonably expect to receive, to the extent that the government assistance has not been repaid under a legal obligation to do so.

Application for certificate

   (4)  In order to be eligible to claim a credit under this section for a taxation year, a specialized digital game corporation shall apply to the Ontario Media Development Corporation or a person designated by the Minister of Culture for certification for the year for the purposes of this section.

Same

   (5)  A specialized digital game corporation that applies for certification under subsection (4) shall provide the information specified for the purposes of this section by the Ontario Media Development Corporation or a person designated by the Minister of Culture to the person who specified that it be provided.

Certificate

   (6)  If a specialized digital game corporation provides the information in accordance with subsection (5) for a taxation year, the Ontario Media Development Corporation or a person designated by the Minister of Culture shall issue a certificate, and any amended certificates it considers appropriate, to the corporation for the year, certifying,

  (a)  that the corporation is a specialized digital game corporation;

  (b)  that the corporation's eligible digital game activities were undertaken in respect of digital games that are eligible digital games or would have been eligible digital games had they been completed before the end of the taxation year; and

   (c)  the estimated amount of the corporation's credit under this section for the year in respect of its eligible digital game activities.

Certificate to be delivered with return

   (7)  In order to claim an amount under this section for a taxation year, a specialized digital game corporation must deliver to the Ontario Minister with its return for the year the certificate for the year or a certified copy of the certificate.

Revocation of certificate

   (8)  A certificate or amended certificate issued under subsection (6) may be revoked,

  (a)  if an omission or incorrect statement was made and it is reasonable to believe that, if the omitted information had been disclosed or if the person issuing the certificate had known that the statement was incorrect, he or she would not have issued the certificate;

  (b)  if none of the activities in respect of which the certificate is issued are eligible digital game activities; or

   (c)  if the corporation to which the certificate is issued is not a specialized digital game corporation.

Same

   (9)  A certificate that is revoked is deemed never to have been issued.

Definitions

   (10)  In this section,

"eligible digital game" means a product in respect of a specialized digital game corporation that satisfies all of the conditions set out in subsection (11); ("jeu numérique admissible")

"eligible digital game activities" means activities that are carried out in Ontario and are directly attributable to the development of an eligible digital game; ("activités admissibles de conception d'un jeu numérique")

"government assistance" means assistance from a government, municipality or other public authority in any form, including a grant, subsidy, forgivable loan, deduction from tax and investment allowance, but not including a tax credit under subsection 93 (1); ("aide gouvernementale")

"Ontario labour expenditure" means the amount determined under the prescribed rules; ("dépense de main-d'oeuvre en Ontario")

"specialized digital game corporation" for a taxation year means a Canadian corporation that satisfies all of the conditions set out in subsection (12). ("société de jeux numériques spécialisée")

Eligible digital game

   (11)  The following are the conditions referred to in the definition of "eligible digital game" in subsection (10):

    1.  The product is an interactive digital media product as determined under the prescribed rules.

    2.  The product is a digital game in the opinion of the Ontario Media Development Corporation or, if another person is designated by the Minister of Culture, in the opinion of that person.

    3.  The product is developed for the purpose of sale or license by the specialized digital game corporation or, if applicable, the purchaser, to one or more persons, each of whom deals at arm's length with the specialized digital game corporation and the purchaser.

    4.  The product is not used primarily,

            i.  for interpersonal communication,

           ii.  to present or promote the specialized digital game corporation or, if applicable, the purchaser, or

          iii.  to present, promote or sell the products or services of the specialized digital game corporation or, if applicable, the purchaser.

    5.  The product is one for which public financial support would not be contrary to public policy in the opinion of the Ontario Media Development Corporation or, if another person is designated for the purposes of subsection 93 (8), as it applies for the purposes of this section, in the opinion of that person.

Specialized digital game corporation

   (12)  The following are the conditions referred to in the definition of "specialized digital game corporation" in subsection (10):

    1.  The corporation carries on through a permanent establishment in Ontario a business that includes the development of digital games.

    2.  The corporation's Ontario labour expenditure for the year in respect of eligible digital games is not less than $1 million.

    3.  The corporation satisfies one of the following conditions:

            i.  the total of the salaries and wages incurred by the corporation in the year for services rendered in Ontario that are directly attributable to the development of digital games is not less than 80 per cent of the total of the salaries and wages incurred by the corporation in the year for services rendered in Ontario,

           ii.  the amount of the corporation's gross revenue for the year that is directly attributable to the development of digital games is not less than 90 per cent of the corporation's total gross revenue for the year, or

          iii.  a condition prescribed for the purposes of this paragraph.

    4.  The corporation is not controlled directly or indirectly in any manner by one or more corporations all or part of whose taxable income is exempt from tax under Part III of this Act.

    5.  The corporation is not a prescribed labour-sponsored venture capital corporation under the Federal regulations.

    6.  The corporation is not a taxable Canadian corporation the primary activity of which is to provide the services of a single individual and all the issued and outstanding shares of the capital stock of which (other than directors' qualifying shares) are owned by that individual.

   20.  (1)  Clauses 95 (15) (e) and (f) of the Act are repealed and the following substituted:

  (e)  the publication date of the literary work is before March 27, 2009 and the corporation publishes the literary work other than as a bound hardback, a paperback or a trade paperback book;

(e.1) the publication date of the literary work is after March 26, 2009 and the corporation publishes the literary work other than as a bound hardback, a paperback or a trade paperback book or as a digital or electronic version of the literary work;

    (f)  the corporation publishes the literary work in an edition of less than 500 copies of a bound book;

   (2)  Subsection 95 (16) of the Act is amended by adding the following paragraphs:

  1.1  Expenditures incurred by the company after March 26, 2009 and in the year in respect of activities that reasonably relate to preparing a literary work for publication in one or more digital or electronic formats, if the activities are carried out primarily in Ontario, including,

            i.  salaries or wages paid to employees involved in editing, design and project management,

           ii.  amounts in respect of fees for freelance editing, design and research,

          iii.  amounts in respect of the cost of art work, developing prototypes and set-up, and

          iv.  salaries, wages, fees or other amounts in respect of related activities, including scanning, editing, formatting, indexing, encryption and establishing digital rights management or other technological protection measures.

.     .     .     .     .

  2.1  One-half of the expenditures incurred by the company after March 26, 2009 and in the year that reasonably relate to transferring a prepared digital or electronic version of the literary work into or onto a form suitable for distribution, if those activities are carried out primarily in Ontario.

   (3)  Section 95 of the Act is amended by adding the following subsection:

Restriction

   (16.1)  An expenditure may not be included under a paragraph of subsection (16) in respect of the publishing of an eligible literary work if the expenditure is also included under another paragraph of that subsection in respect of the publishing of the literary work.

   (4)  The definition of "eligible Canadian author" in subsection 95 (20) of the Act is repealed and the following substituted:

"eligible Canadian author" means, with respect to a literary work, an individual,

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

  (b)  who, if the literary work is published before March 27, 2009, has not written more than two literary works of the same eligible category of writing that have been previously published, other than a literary work published in an anthology containing two or more literary works by different authors; ("auteur canadien admissible")

   21.  Subsection 99 (1) of the Act is amended by striking out "for a taxation year" and substituting "for a taxation year ending before January 1, 2010".

   22.  (1)  Subsection 100 (1) of the Act is amended by striking out "for a taxation year" and substituting "for a taxation year ending before January 1, 2010".

   (2)  The formula set out in subsection 100 (5) of the Act is amended by striking out "$24,300" and substituting "$24,750".

   (3)  The definition of "C" in subsection 100 (5) of the Act is amended by striking out "$24,300" and substituting "$24,750".

   23.  The Act is amended by adding the following sections:

Ontario property tax credit, individual other than a senior

   101.1  (1)  An individual who is a qualifying individual for a taxation year ending after December 31, 2009 may claim an amount for the year in respect of and not exceeding his or her Ontario property tax credit, if any, for the year. 

Qualifying individual

   (2)  An individual is a qualifying individual for a taxation year for the purposes of this section if, on December 31 in the year, the individual,

  (a)  is resident in Ontario;

  (b)  has reached 18 years of age or is a parent who resided with their child or is married or has a common law partner;

   (c)  is not a senior;

  (d)  does not have a qualifying spouse or qualifying common-law partner who is a senior; and

  (e)  has not been confined to a prison or similar institution for a total of more than 180 days during the year.

Amount of tax credit

   (3)  Subject to section 101.3, the amount of a qualifying individual's Ontario property tax credit under this section for a taxation year is the amount, if any, calculated using the formula,

A – [0.02 × (B – C)]

in which,

  "A"  is the least of,

         (a)  $900,

         (b)  the individual's occupancy cost for the year, and

          (c)  the sum of,

                   (i)  the lesser of $250 and the individual's occupancy cost for the year, and

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

  "B"  is,

         (a)  the greater of $20,000 and the individual's adjusted income for the year, if the individual did not have a qualifying spouse or qualifying common-law partner throughout the year, or

         (b)  the greater of $25,000 and the individual's adjusted income for the year, if the individual had a qualifying spouse or qualifying common-law partner at any time in the year, and

  "C"  is,

         (a)  $20,000, if the individual did not have a qualifying spouse or qualifying common-law partner throughout the year, or

         (b)  $25,000, if the individual had a qualifying spouse or qualifying common-law partner at any time in the year.

Ontario property tax credit, seniors

   101.2  (1)  An individual who is a qualifying individual for a taxation year ending after December 31, 2009 may claim an amount for the year in respect of and not exceeding his or her Ontario property tax credit, if any, for the year.

Qualifying individual

   (2)  An individual is a qualifying individual for a taxation year for the purposes of this section if, on December 31 in the year, the individual,

  (a)  is resident in Ontario;

  (b)  is a senior; and

   (c)  has not been confined to a prison or similar institution for a total of more than 180 days during the year.

Income threshold for 2010 and subsequent years

   (3)  If the amounts calculated in accordance with paragraph 7 of subsection 23 (1) of this Act, described for the purposes of clause (b) of the definitions of "B" and "C" in subsection (5), are less than the amounts described in subsection (4) that are to be paid to a senior and his or her qualifying spouse or qualifying common-law partner in January, April, July and October of the taxation year, the amounts for the purposes of clause (b) of the definitions of "B" and "C" in subsection (5) shall be equal to the amount determined by reference to the amounts described in subsection (4) that are authorized to be paid to a senior and his or her qualifying spouse or qualifying common-law partner in January, April, July and October of the taxation year.

Same

   (4)  For the purposes of subsection (3), the amounts are,

  (a)  the maximum amount of a pension under the Old Age Security Act (Canada);

  (b)  the maximum amount of a guaranteed income supplement under Part II of the Old Age Security Act (Canada); and

   (c)  the maximum amount of a guaranteed annual income increment under the Ontario Guaranteed Annual Income Act.

Amount of tax credit

   (5)  Subject to section 101.3, the amount of a qualifying individual's Ontario property tax credit under this section for a taxation year is the lesser of $1,025 and the amount, if any, calculated using the formula,

A – [0.02 × (B – C)]

in which,

  "A"  is the least of,

         (a)  $1,025,

         (b)  the individual's occupancy cost for the year, and

          (c)  the sum of,

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

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

  "B"  is,

         (a)  the greater of $20,000 and the individual's adjusted income for the year, if the individual did not have a qualifying spouse or qualifying common-law partner throughout the year, or

         (b)  the greater of $25,000 and the individual's adjusted income for the year, if the individual had a qualifying spouse or qualifying common-law partner at any time in the year, and

  "C"  is,

         (a)  $20,000, if the individual did not have a qualifying spouse or qualifying common-law partner throughout the year, or

         (b)  $25,000, if the individual had a qualifying spouse or qualifying common-law partner at any time in the year.

Reduction in amount of Ontario 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 in subsection (5) is reduced by the amount, if any, by which the sum of "D" and "E" exceeds "F" where,

  "D"  is the amount determined in respect of the senior for the year in subsection (5) before the application of this subsection,

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

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

Rules relating to Ontario property tax credit

   101.3  The following rules apply in determining the amount, if any, of an individual's Ontario property tax credit under section 101.1 or 101.2 for a taxation year:

    1.  If an individual has a qualifying spouse or qualifying common-law partner at any time in a taxation year,

            i.  only one of them may claim the Ontario property tax credit for the year, and

           ii.  for the purposes of determining the amount of the Ontario property tax credit for the year, the occupancy cost for the year of the individual claiming the credit may include the occupancy cost, if any, of his or her qualifying spouse or qualifying common-law partner for the year.

    2.  If two or more individuals inhabit the same principal residence in a taxation year and each of them is entitled to claim an Ontario property tax credit for the year in respect of the residence, the total occupancy cost relating to the residence is allocated to each of them according to the following:

            i.  The beneficial ownership of each of them in the principal residence, if the principal residence is not a non-seasonal mobile home and is not a residence occupied pursuant to a life lease or a lease having a term of 10 years or more.

           ii.  The portion of the rent for the principal residence that each of them paid in respect of the occupation of the residence in the year.

          iii.  In the case of a principal residence that is a non-seasonal mobile home owned and occupied by one or both of them, the amount paid for the year by each of them to the owner of the land on which the mobile home is located that can reasonably be considered to have been paid to compensate the owner for municipal tax assessed against the land for the year and the amount of municipal tax that was paid by each of them for the year in respect of the mobile home.

          iv.  In the case of a principal residence occupied pursuant to a life lease or a lease having a term of 10 years or more where the lease has been paid in full, the same percentage of the amount of municipal tax that is reasonably applicable to the residence for the taxation year as the percentage interest of each of them in the lease.

    3.  If an individual has more than one taxation year ending in a calendar year, the individual shall have an occupancy cost for only the last taxation year ending in the calendar year and the amount of that occupancy cost shall be the amount that would be determined if that taxation year included all previous taxation years ending in the calendar year.

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

Part v.3
ontario sales tax credit

Definitions

   104.11  (1)  In this Part,

"adjusted income" means adjusted income as defined in subsection 122.5 (1) of the Federal Act; ("revenu rajusté")

"eligible individual" means an individual who is an eligible individual as defined in subsection 122.5 (1) of the Federal Act and who is not excluded from this definition because of subsection 122.5 (2) of the Federal Act; ("particulier admissible")

"qualified dependant" means a qualified dependant as defined in subsection 122.5 (1) of the Federal Act and who is not excluded from this definition because of subsection 122.5 (2) of the Federal Act; ("personne à charge admissible")

"qualified relation" means a qualified relation as defined in subsection 122.5 (1) of the Federal Act and who is not excluded from this definition because of subsection 122.5 (2) of the Federal Act. ("proche admissible")

Application of Federal Act

   (2)  Subsections 122.5 (3.1), (3.2), (5), (6), (6.1), (6.2) and (7) and 160.1 (1.1) of the Federal Act apply for the purposes of this section in respect of an overpayment deemed to arise under subsection (4) as if a reference in any of those provisions to a provision of the Federal Act were a reference to the corresponding provision of this section.

Deemed overpayment on account of tax

   (3)  If an overpayment on account of an individual's liability under this Act is deemed to have arisen during a specified month ending after June 30, 2010, for a taxation year, the Ontario Minister shall pay an Ontario sales tax credit to the individual for the specified month in accordance with this section.

When overpayment is deemed to have arisen

   (4)  An overpayment on account of an individual's liability under this Act for a taxation year is deemed to have arisen during a specified month for a taxation year if the following conditions are satisfied:

    1.  The individual is an eligible individual.

    2.  The individual is resident in Ontario immediately before the first day of the specified month.

    3.  The individual and, if required by the Ontario Minister, the person who is the individual's qualified relation have each filed a return of income for the taxation year.

Amount of payment for specified month

   (5)  The amount of the Ontario sales tax credit to which an individual is entitled for a specified month is the amount calculated using the formula,

in which,

  "A"  is the total of,

         (a)  $260,

         (b)  $260 where the individual has a qualified relation,

          (c)  $260 where the individual has no qualified relation for the taxation year and is entitled to deduct an amount for the taxation year under subsection 118 (1) of the Federal Act because of paragraph (b) of the definition of "B" in that subsection in respect of a qualified dependant of the individual for the taxation year, and

         (d)  $260 multiplied by the number of qualified dependants of the individual other than a qualified dependant in respect of whom an amount is included under clause (c),

  "B"  is,

         (a)  the greater of $20,000 and the individual's adjusted income for the taxation year if the individual does not have a qualified relation or a qualified dependant, and

         (b)  the greater of $25,000 and the individual's adjusted income for the taxation year if the individual has a qualified relation, a qualified dependant or both, and

  "C"  is,

         (a)  $20,000 if the individual does not have a qualified relation or qualified dependant, and

         (b)  $25,000 if the individual has a qualified relation, a qualified dependant or both.

Months specified

   (6)  For the purposes of this section, the months specified for a taxation year are August and November of the immediately following taxation year and February and May of the second following taxation year.

Amount not to be charged

   (7)  A credit under this section or an entitlement to the payment of a credit under this section, as the case may be,

  (a)  shall not be assigned, charged, attached or given as security; and

  (b)  shall not be garnished.

Repayment of Ontario sales tax credit

   (8)  If, after an Ontario sales tax credit is paid to an individual under this section, it is determined that the individual received an Ontario sales tax credit to which he or she is not entitled or received an amount greater than the amount to which he or she was entitled, the individual shall repay the amount or the excess amount, as the case may be, to the Ontario Minister.

Exception

   (9)  Subsection (8) does not apply if the total amount payable in respect of a taxation year is not more than $2.

No interest payable

   (10)  No interest is payable on the amount of an Ontario sales tax credit paid by the Ontario Minister under this section or repayable by an individual under this section.

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

part v.4
Ontario sales tax transition benefit

Definitions

   104.12  (1)  In this Part,

"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 modifié")

"eligible individual", in relation to a specified month, means an individual who is not an ineligible individual in relation to the specified month and who, immediately before the first day of the specified month,

  (a)  is 18 years of age or more,

  (b)  is married or in a common-law partnership, or

   (c)  is a parent who resides with one or more qualified dependants; ("particulier admissible")

"ineligible individual", in relation to a specified month, means an individual who, at the beginning of the specified month, is a person referred to in paragraph 122.5 (2) (a), (b), (c) or (d) of the Federal Act; ("particulier exclu")

"qualified dependant" means, in respect of an individual for a specified month, a person who, at the beginning of the specified month,

  (a)  is the child of the individual or is dependent for support on the individual or on the qualified relation of the individual,

  (b)  resides with the individual,

   (c)  is under the age of 18 years,

  (d)  is not an eligible individual in relation to a specified month, and

  (e)  is not a qualified relation in respect of any individual; ("personne à charge admissible")

"qualified relation" means, in respect of an individual at any time, a person who was, at that time, the individual's cohabiting spouse or common-law partner within the meaning assigned by section 122.6 of the Federal Act; ("proche admissible")

"specified month" means June 2010, December 2010 or June 2011. ("mois déterminé")

Application of subs. (3)

   (2)  Subsection (3) applies for the purposes of this Part if an individual (the "specified individual") dies after December 31, 2009 and would have been, but for his or her death,

  (a)  an eligible individual who has a qualified relation or qualified dependant at the beginning of a specified month; or

  (b)  an individual who is a qualified relation or a qualified dependant in respect of an eligible individual at the beginning of a specified month.

Continuation of benefit

   (3)  If this subsection applies in respect of a specified individual, the entitlement of the specified individual, or of an eligible individual in respect of whom the specified individual is a qualified relation or a qualified dependant, to an Ontario sales tax transition benefit under this section for a specified month commencing after the specified individual dies shall be determined under this section as if the specified individual did not die.

Shared custody

   (4)  If an individual can reasonably be considered to reside at a particular time with two parents who live separate and apart, the individual shall be deemed for the purposes of clause (b) of the definition of "qualified dependant" in subsection 122.5 (1) of the Federal Act to reside at the particular time with the parent who claims an amount under paragraph 118 (1) (b.1) of the Federal Act in respect of the individual for the taxation year immediately preceding the taxation year that includes the particular time.

Deemed overpayment on account of tax

   (5)  If an eligible individual is deemed to have made an overpayment of tax under this Act for a specified month, the Ontario Minister shall pay an Ontario sales tax transition benefit to the individual for the month in accordance with this section.

Deemed overpayment, June 2010

   (6)  An eligible individual is deemed to have made an overpayment on account of tax payable under this Act for June 2010 if the following conditions are satisfied:

    1.  The eligible individual,

            i.  is resident in Canada on December 31, 2009 and a return of income in respect of the individual's 2009 taxation year is filed for the purposes of the Federal Act by April 30, 2011, or

           ii.  is not resident in Canada on December 31, 2009 and provides a statement of world-wide income to the Ontario Minister in respect of the 2009 taxation year by April 30, 2011.

    2.  The eligible individual is resident in Ontario on May 31, 2010.

    3.  The Ontario Minister does not pay an Ontario sales tax transition benefit under this section for June 2010 to a person who was the individual's qualified relation on May 31, 2010.

Deemed overpayment, December 2010

   (7)  An eligible individual is deemed to have made an overpayment on account of tax payable under this Act for December 2010 if the following conditions are satisfied:

    1.  The eligible individual,

            i.  is resident in Canada on December 31, 2009 and a return of income in respect of the individual's 2009 taxation year is filed for the purposes of the Federal Act by April 30, 2011, or

           ii.  is not resident in Canada on December 31, 2009 and provides a statement of world-wide income to the Ontario Minister in respect of the 2009 taxation year by April 30, 2011.

    2.  The eligible individual is resident in Ontario on November 30, 2010.

    3.  The Ontario Minister does not pay an Ontario sales tax transition benefit under this section for December 2010 to a person who was the individual's qualified relation on November 30, 2010.

Deemed overpayment, June 2011

   (8)  An eligible individual is deemed to have made an overpayment on account of tax payable under this Act for June 2011 if the following conditions are satisfied:

    1.  The eligible individual,

            i.  is resident in Canada on December 31, 2010 and a return of income in respect of the individual's 2010 taxation year is filed for the purposes of the Federal Act by April 30, 2012, or

           ii.  is not resident in Canada on December 31, 2010 and provides a statement of world-wide income to the Ontario Minister in respect of the 2010 taxation year by April 30, 2012.

    2.  The eligible individual is resident in Ontario on May 31, 2011.

    3.  The Ontario Minister does not pay an Ontario sales tax transition benefit under this section for June 2011 to a person who was the individual's qualified relation on May 31, 2011.

Determination by the Ontario Minister

   (9)  The Ontario Minister shall determine, without an application by the eligible individual,

  (a)  whether the individual is entitled to receive an Ontario sales tax transition benefit for a specified month; and

  (b)  the amount of the benefit, if any, to which the individual is entitled for the specified month.

Calculation of payment, June 2010 and December 2010

   (10)  The amount of an Ontario sales tax transition benefit to which an eligible individual is entitled for each of June 2010 and December 2010 is determined as follows:

    1.  If the individual does not have a qualified relation or a qualified dependant at the beginning of the relevant specified month, the amount of the individual's Ontario sales tax transition benefit for the specified month is the amount calculated using the formula,

$100 – (0.05 × A)

in which,

         "A"  is the amount, if any, by which the individual's adjusted income for the 2009 taxation year exceeds $80,000.

    2.  If the specified month is June 2010 and the individual has a qualified relation or a qualified dependant at the beginning of the relevant specified month, the amount of the individual's Ontario sales tax transition benefit for the specified month is the amount calculated using the formula,

$330 – (0.05 × B)

in which,

         "B"  is the amount, if any, by which the individual's adjusted income for the 2009 taxation year exceeds $160,000.

    3.  If the specified month is December 2010 and the individual has a qualified relation or a qualified dependant at the beginning of the relevant specified month, the amount of the individual's Ontario sales tax transition benefit for the specified month is the amount calculated using the formula,

$335 – (0.05 × C)

in which,

         "C"  is the amount, if any, by which the individual's adjusted income for the 2009 taxation year exceeds $160,000.

Calculation of payment, June 2011

   (11)  The amount of an Ontario sales tax transition benefit to which an eligible individual is entitled for June 2011 is determined as follows:

    1.  If the individual does not have a qualified relation or a qualified dependant at the beginning of June 2011, the amount of the individual's Ontario sales tax transition benefit for June 2011 is the amount calculated using the formula,

$100 – (0.05 × D)

in which,

         "D"  is the amount, if any, by which the individual's adjusted income for the 2010 taxation year exceeds $80,000.

    2.  If the individual has a qualified relation or a qualified dependant at the beginning of June 2011, the amount of the individual's Ontario sales tax transition benefit for June 2011 is the amount calculated using the formula,

$335 – (0.05 × E)

in which,

         "E"  is the amount, if any, by which the individual's adjusted income for the 2010 taxation year exceeds $160,000.

Notice and payment

   (12)  If the Ontario Minister determines that an eligible individual is entitled to an Ontario sales tax transition benefit for a specified month, the Ontario Minister,

  (a)  shall send a notice to the individual setting out the amount of the payment for the specified month to which the individual is entitled; and

  (b)  shall make the payment to the individual in accordance with the determination.

Determination by Ontario Minister is final

   (13)  The determination by the Ontario Minister of whether an individual is entitled to receive an Ontario sales tax transition benefit for a specified month and the amount of the benefit, if any, is final and is not subject to review.

No set off

   (14)  No portion of an Ontario sales tax transition benefit shall be retained by the Ontario Minister and applied to reduce any debt to the Crown in right of Ontario or in right of Canada.

Time limit for payment

   (15)  Despite subsection (12), the Ontario Minister shall not pay an Ontario sales tax transition benefit under this section after April 30, 2013 and no individual is entitled to receive a payment under this section after that date unless the individual's entitlement to the payment arose by reason of an assessment or reassessment made under this Act before May 1, 2013.

Minimum payment

   (16)  If the amount of an Ontario sales tax transition benefit to which an individual is entitled for a specified month is greater than zero but less than $10, the Ontario Minister shall pay an Ontario sales tax transition benefit for the specified month to the individual in the amount of $10.

Repayment after assessment or reassessment

   (17)  If the Ontario Minister determines that an individual received an Ontario sales tax transition benefit to which he or she is not entitled or received an amount greater than the amount to which he or she is entitled, the individual shall repay the amount or the excess amount, as the case may be, to the Ontario Minister.

Exception

   (18)  Subsection (17) does not apply if,

  (a)  the amount that is repayable is not more than $2; or

  (b)  the Ontario Minister's determination referred to in subsection (12) results from an assessment or reassessment under this Act that is made after April 30, 2013.

Recovery of excess amounts

   (19)  An amount repayable under subsection (17) that has not been repaid to the Ontario Minister constitutes a debt to the Crown in right of Ontario and may be recovered by way of deduction, set-off or in any court of competent jurisdiction in proceedings commenced at any time or in any other manner provided by this Act.

No interest payable

   (20)  No interest is payable on the amount of an Ontario sales tax transition benefit paid by the Ontario Minister under this section or repayable by an individual under this section.

Bankruptcy

   (21)  For the purposes of subsections (10) and (11), if an individual is bankrupt at any time during the 2009 or 2010 taxation year,

  (a)  the individual shall be deemed to have only one taxation year in that year beginning on January 1 and ending on December 31; and

  (b)  the individual's income for that taxation year shall be deemed to be the total amount of the individual's income for that year. 

Amount not to be charged

   (22)  Subsection 122.61 (4) of the Federal Act applies for the purposes of this Part in respect of any overpayment deemed to arise under this section.

Repeal

   (23)  This section is repealed on December 31, 2013.

   26.  Subsections 105 (3.2) and (3.3) of the Act are repealed and the following substituted:

Amounts determined in respect of an additional refund of basic tax

   (3.2)  For the purpose of subsection (3.1), the amount determined for a taxation year in respect of an additional refund of basic tax under subsection 4 (9.1) of the Income Tax Act is the amount, if any, by which "Q" exceeds "R" where,

  "Q"  is the amount that the trust was entitled to receive for the year under subsection 4 (9.1) of the Income Tax Act, and

  "R"  is the amount determined under subsection (3.3) for the year in respect of an additional refund of surcharge or surtax, as the case may be, under subsection 4 (9.1) of the Income Tax Act.

Amounts previously refunded as additional refunds of surtax

   (3.3)  For the purpose of subsection (3.1), the amount determined for a taxation year in respect of an additional refund of surcharge or surtax under subsection 4 (9.1) of the Income Tax Act is,

  (a)  if the trust was entitled to receive an amount for the year under subsection 4 (9.1) of the Income Tax Act, the lesser of,

           (i)  that amount, and

          (ii)  the amount determined as "C" for the year for the purposes of the formula in subsection 4 (9.1) of the Income Tax Act less the sum of,

                 (A)  the sum of all amounts of surcharge or surtax, as the case may be, that were refunded as part of an amount refunded to the trust before the year under subsection 4 (9.1) of the Income Tax Act, and

                 (B)  the sum of all amounts of surcharge or surtax, as the case may be, that were refunded as part of an amount refunded to the trust before the year or in the year under subsection 4 (9) of the Income Tax Act in respect of a taxation year ending after 1995; or

  (b)  in any other case, nil.

   27.  Paragraph 1 of subsection 125 (2) of the Act is amended by striking out "and" at the end of subparagraph iv, by adding "and" at the end of subparagraph v and by adding the following subparagraph:

          vi.  the amount of an Ontario sales tax credit, if any, to which the taxpayer is entitled under section 104.11.

   28.  (1)  Subclause 144 (1) (b) (ii) of the Act is repealed and the following substituted:

          (ii)  attempting to obtain for the benefit of the person or another person an amount in respect of a tax credit under Part IV, an Ontario child benefit under section 104, a senior homeowners' property tax grant under section 104.1, the Ontario sales tax credit under section 104.11 or the Ontario sales tax transitional benefit under section 104.12 in excess of the amount to which the person or other person is entitled, or

   (2)  Clause 144 (2) (a) of the Act is repealed and the following substituted:

  (a)  to a fine of not less than 50 per cent and not more than 200 per cent of the amount of the tax that was sought to be evaded or the amount that was sought in excess of the tax credit under Part IV, the Ontario child benefit under section 104, the senior homeowners' property tax grant under section 104.1, the refund under Part V.2, the Ontario sales tax credit under section 104.11 or the Ontario sales tax transitional benefit under section 104.12 to which the person or the other person is entitled; or

   29.  Clause 172 (1) (e) of the Act is repealed and the following substituted:

  (e)  prescribing a percentage for the purposes of clause 92 (3) (b) and the period of time after December 31, 2007 and before July 1, 2009 to which it applies;

(e.1) prescribing a percentage for the purposes of clause 92 (3) (c) and the period of time after June 30, 2009 to which it applies;

Commencement

   30.  (1)  Subject to subsections (2), (3) and (4), this Schedule comes into force on the day the Ontario Tax Plan for More Jobs and Growth Act, 2009 receives Royal Assent.

Same

   (2)  Sections 3, 10, 11 and 16, subsections 22 (2) and (3) and section 26 are deemed to have come into force on January 1, 2009.

Same

   (3)  Sections 15, 18, 19 and 20 are deemed to have come into force on March 27, 2009.

Same

   (4)  Section 17 is deemed to have come into force on July 1, 2009.

Schedule V
Teachers' Pension Act

   1.  (1)  Subsection 5 (1.2) of the Teachers' Pension Act is amended by striking out "subsections (3), (4) and (7)" and substituting "subsections (3) and (7)".

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

Payments re foregone inflation adjustments

   (2.1)  For the purposes of subsection (1.1), no additional payments made on or after January 1, 2010 by the Minister of Education or employers who contribute under the pension plan in connection with the foregone inflation adjustments described in subsection (2.2) shall be included in determining the total amount of contributions payable by the Minister of Education and the employers who contribute under the plan.

Same

   (2.2)  Foregone inflation adjustments are the inflation adjustments foregone in accordance with subsections 80 (3a) and (3b) of Schedule 1, as it reads on January 1, 2010, and the contributions to be made by the Minister of Education and the employers in connection with those adjustments are the contributions required by subsections 25 (2d) and 26 (1d) of Schedule 1, as it reads on January 1, 2010.

Commencement

   2.  This Schedule comes into force on January 1, 2010.

Schedule W
Toronto Futures Exchange Act

   1.  The Toronto Futures Exchange Act is repealed.

Commencement

   2.  This Schedule comes into force on the day the Ontario Tax Plan for More Jobs and Growth Act, 2009 receives Royal Assent.

 

EXPLANATORY NOTE

This Explanatory Note was written as a reader's aid to Bill 218 and does not form part of the law.  Bill 218 has been enacted as Chapter 34 of the Statutes of Ontario, 2009.

Schedule A
Alcohol and Gaming Regulation and Public Protection Act, 1996

The Alcohol and Gaming Regulation and Public Protection Act, 1996 is amended to add Part II which imposes taxes,

  (a)   on a purchaser of beer from a beer manufacturer's on-site store, an agency store of the Liquor Control Board of Ontario, a retail store operated by Brewers' Retail Inc. or a licensed establishment;

  (b)   on a purchaser of draft beer made by a brew pub; and

  (c)   on a purchaser of wine or a wine cooler from a winery retail store.

Purchasers of beer, wine and wine coolers from the Liquor Control Board of Ontario and consumers who make their own beer and wine are not subject to the tax.  The tax under Division B of Part II of the Act takes effect on July 1, 2010 or when harmonized sales tax takes effect.

Division E of Part II of the Act imposes taxes retroactively on purchasers who purchased beer, wine and wine coolers between January 1, 2007 and the day the tax under Division B of Part II of the Act takes effect, but the tax imposed during this period is deemed to have been paid and remitted to the Minister of Finance. 

Certain fees imposed by the Commission under the authority of section 14 of the Act are eliminated as of the day the tax under Division B of Part II of the Act takes effect.

Part II of the Act includes administrative and enforcement provisions similar to those in Ontario tax statutes.

Consequential and technical housekeeping amendments are made to the Act and the Liquor Licence Act.

Schedule B
Architects act

The Architects Act is amended to provide that sections 3.2, 3.3 and 3.4 of the Business Corporations Act (which govern professional corporations) do not apply to corporations, or to corporations in partnerships of corporations, that have been issued certificates of practice under the Act.

Schedule C
Commodity Futures Act

The enactment of paragraph 1.1 of subsection 65 (1) of the Commodity Futures Act gives the Ontario Securities Commission the same authority it has under the Securities Act to make rules prescribing circumstances in which a suspended registration is or may be reinstated.

Schedule D
Community Small Business Investment Funds Act

The amendment to clause (c) of the definition of "eligible investor" in subsection 12 (1) of the Community Small Business Investment Funds Act provides that the spouse or common-law partner of a person whose tax-free savings account invests in a labour sponsored investment fund corporation is not an eligible investor with respect to the fund.  A correction in the English wording is made in subsection 12 (3) of the Act.

A shareholder of a labour sponsored investment fund corporation who redeems his or her shares less than eight years after the shares were issued is required to pay a tax equivalent to the amount of the tax credit the shareholder was entitled to receive on purchasing the shares.  The amendments to section 14.1 of the Act adjust the calculation of the tax to reflect changes made in the tax credit rates.

The amendment to clause 18.11 (4) (a) of the Act terminates the Ontario Commercialization Investment Fund Program by providing that no eligible investments may be made after 2009.

Subsection 19 (1) of the Act lists the only form of assets an investment corporation may hold.  The enactment of clause 19 (1) (d.1) permits a labour sponsored investment fund corporation to hold an investment purchased from a seller that is a labour sponsored investment fund corporation if, before the seller sold the investment, the investment was an eligible investment under the Act with respect to the seller.

Under section 27 of the Act, a labour sponsored investment fund corporation is required to pay a penalty if its registration under the Act is revoked or if the corporation winds up, dissolves or surrenders its registration under the Act.  The amount of the penalty is equivalent to the amount of tax credits its shareholders were entitled to receive on purchasing shares of the corporation that have not been outstanding at least eight years.  A similar penalty is payable by a shareholder, equal to the amount of tax credits the shareholder was entitled to receive on purchasing shares of a labour sponsored investment fund corporation, if the shareholder receives an amount in respect of a reduction in the stated capital attributable to those shares and the shares were not outstanding at least eight years.  The amendments to section 27 of the Act adjust the calculation of the penalty to reflect changes made in the tax credit rates.

Section 27.1 of the Act sets out rules relating to the sale or amalgamation of labour sponsored investment fund corporations.  The enactment of paragraph 11 of subsection 27.1 (4) of the Act confirms the joint and several liability of the purchaser and vendor corporations for any liabilities that are due under the Act by the vendor corporation.

Schedule E
Condominium Act, 1998

The Condominium Act, 1998 is amended to provide that the investments that a condominium corporation is allowed to make with money contained in its general account or its reserve fund account are expanded to include instruments issued by credit unions which are insured by the Deposit Insurance Corporation of Ontario.

Schedule F
Co-operative Corporations Act

The amendments to the Co-operative Corporations Act bring certain provisions relating to co-operatives, including the election of directors and the conduct of general meetings and directors' meetings, more into line with comparable provisions of the Business Corporations Act.  Non-members of co-operatives are permitted to be directors of the co-operative, subject to certain restrictions.

Schedule G
Corporations Tax Act

Section 43.5 of the Corporations Tax Act provides the Ontario film and television tax credit to qualifying production companies for taxation years ending before January 1, 2009.  A bonus 10 per cent tax credit is allowed under this section in respect of eligible Ontario productions that are regional Ontario productions.  The definition of "regional Ontario production" in subsection 43.5 (19) of the Act is amended to provide that a regional Ontario production will include a production that consists entirely of animation only if not more than 15 per cent of the principal photography in Ontario for the production is done in the Greater Toronto Area.  A technical amendment is also made to the definition of "film studio" in subsection 43.5 (19) to provide that a film studio includes a building in which activities are carried out in support of animation.

These amendments are effective as of May 3, 2003.

Schedule H
Credit Unions and CAisses populaires Act, 1994

The re-enactment of clause 39 (1) (d) of the Credit Unions and Caisses Populaires Act, 1994 permits credit unions to accept such deposits in trust as may be authorized under Ontario or federal legislation and removes the requirement that regulations be made to prescribe the statutes under which deposits may be held at credit unions.

New subsection 182 (1.1) of the Act provides that the payments of unclaimed deposits to the Minister of Finance as required under subsection 182 (1) of the Act are to be made in accordance with the Minister's directions.

Schedule I
Education Act

The Schedule amends the Education Act in respect of accounting practices and standards for school boards.  A new rule is added to the Act that boards shall not have an in-year deficit, and shall not submit estimates that indicate the board would have an in-year deficit, greater than the amount set out in the Act.  An exception is made for a board if a deficit is permitted as part of a financial recovery plan under the new Division C.1 or if the board is subject to an order under the specified provisions of the Act.  In addition, the Minister may approve an in-year deficit that is greater than the amount set out in the Act, upon considering factors such as whether the deficit is structural or would occur only one time and whether the deficit is due to circumstances beyond the board's control.

The Act is amended so that boards are no longer authorized to establish reserve funds.  However, boards continue to be authorized to restrict amounts for specified purposes, and in some cases are required under the Act to do so.

The power to make regulations governing the making of legislative grants to school boards is amended so that a regulation may set out rules respecting the number, timing and amount of payments.  The Minister is required to follow any such rules in making decisions respecting legislative grants.

A new Division C.1 is added to the Act respecting financial recovery plans.  The Minister may order a board to adopt a financial recovery plan in various circumstances, in particular if the board's financial statements indicate the board had an accumulated deficit or an in-year deficit contrary to the rule set out in the Act.  The Minister may require changes to be made to a plan, or may require a board to submit a new plan.  Boards are required to comply with the plan until the board's financial statements for a fiscal year show neither an accumulated deficit nor an in-year deficit.

Obsolete provisions are repealed and various consequential changes and corrections are made.

Schedule J
Financial Administration Act

The Schedule replaces provisions relating to public finance in Part VI of the Capital Investment Plan, 1993, sections 11 and 12 of the Ministry of Revenue Act, the Ministry of Treasury and Economics Act and the Treasury Board Act, 1991 with corresponding provisions in a new Part 0.1 of the Financial Admin­istration Act, and makes the changes which are identified below.

Section 1 of the Financial Administration Act is amended to explain references in the Act to an appropriation for a fiscal year.

Section 1.0.4 of the Act provides that the Treasury Board Office of the Ministry of Finance provides the staff required for the operation and administration of the Treasury Board.  The Deputy Minister of Finance holds the office of Secretary of Treasury Board unless the Lieutenant Governor in Council has designated another person who is a public servant referred to in paragraph 1 or 3 of subsection 2 (2) of the Public Service of Ontario Act, 2006 to hold that office.  The Secretary of Management Board of Cabinet is authorized and required to act in place of the Secretary of Treasury Board if there is no Secretary of Treasury Board or the Secretary is absent or unable to act.

Clause 1.0.5 (1) (e) of the Act gives the Treasury Board the additional power and duty to approve new and existing programs of any ministry.

Subsection 1.0.5 (4) of the Act deems any existing directive made under the Treasury Board Act, 1991 to have been made under section 1.0.5 of the Act.

Sections 1.0.7 and 1.0.8 of the Act reflect the inclusion of the recognition of non-cash expenses in the definitions of "expenditure" and "appropriation" in the section 1 of the Act.

Subsection 1.0.14 (1) of the Act limits the Minister of Finance's power and duty to manage all public money where another Act provides otherwise.

Subsection 1.0.14 (3) of the Act gives the Minister of Finance the additional power to issue policies.

Subsection 1.0.14 (4) of the Act deems all existing directives made under the Ministry of Treasury and Economics Act to have been made under the authority of section 1.0.14 of the Act.

Subsection 1.0.14 (5) of the Act deems all references to the Treasurer of Ontario or to the Treasurer of Ontario and Minister of Economics in any other Act to be a reference to the Minister of Finance. 

Subsection 1.0.16 (2) of the Act excludes the authority to grant remissions under subsection 5.1 (3) of the Act and the authority to make regulations from the Minister of Finance's powers that may be delegated under subsection 1.0.16 (1) of the Act.

Subsection 1.0.16 (7) of the Act deems existing delegations of authority made under subsection 64 (1) of the Capital Investment Plan Act, 1993 to have been made under section 1.0.16 of the Act.

Subsection 1.0.17 (2) of the Act extends protection from personal liability to public servants who do not work in the Ministry of Finance but provide services to the Ministry of Finance in respect of acts or omissions done in the performance or intended performance of a delegated or subdelegated power or duty of the Minister of Finance.

Section 1.0.20 of the Act reflects the power of the Minister of Finance to issue policies under subsection 1.0.14 (3) of the Act.

Section 1.0.23 of the Act reflects the inclusion of the recognition of non-cash expenses in the definitions of "expenditure" and "appropriation" in section 1 of the Act.

Subsection 1.0.25 (1) of the Act extends the Minister of Finance's right to be provided with information to require that information be provided by Crown agencies, entities whose financial statements are included in the consolidated financial statements set out in the Public Accounts of Ontario and entities whose financial obligations have been guaranteed by the Government of Ontario or a Crown agency.

Subsection 1.0.25 (2) of the Act extends the Minister of Finance's right to be provided with information to require that information be provided by the administrators of pension plans that are sponsored or co-sponsored by the Province of Ontario, including a Crown agency, or by any entity whose financial statements are included in the consolidated financial statements set out in the Public Accounts of Ontario, but only in respect of such information regarding the pension plan and its assets as the Minister of Finance requires.

Subsection 1.0.25 (3) of the Act extends the Minister of Finance's right to be provided with access to books, accounts, financial records, reports, files and other papers, things or property to require such access from Crown agencies.

Section 2 of the Act is amended to require that the activities of certain non-development corporations constituted under section 5 of the Development Corporations Act be funded exclusively by transfer payments from the Province.

New subsection 7 (3) of the Act permits interest to be credited on money paid to Ontario for a special purpose that has been paid into the Consolidated Revenue Fund in respect of a period of time that precedes the date of the relevant order of the Lieutenant Governor in Council. 

New subsection 7 (4) of the Act limits the amount of interest that can be credited under subsection 7 (2) of the Act to the income earned on the relevant funds while they are held in the Consolidated Revenue Fund.  New subsection 7 (5) of the Act creates an exception from the application of the limit in subsection 7 (4) of the Act in respect of pension funds or supplementary pension funds that are held in the Consolidated Revenue Fund.

New subsection 11 (5) of the Act extends the statutory appropriation under subsection 11 (4) of the Act to include amounts payable under Part IX of the Excise Tax Act (Canada) in respect of which the Crown is entitled to a refund.

New subsection 43 (3) of the Act provides that section 43 of the Act applies despite any other Act, unless the other Act expressly provides that it applies despite that subsection.

Wording changes are made to the French version of certain provisions of the Act for linguistic purposes.

Provisions in the Act that are no longer required are repealed, and Part VI of the Capital Investment Plan Act, 1993, sections 11 and 12 of the Ministry of Revenue Act, the Ministry of Trea­sury and Economics Act and the Treasury Board Act, 1991 are repealed.  Consequential amendments are made to various Acts as a result of the repeal of the Ministry of Treasury and Economics Act and the Treasury Board Act, 1991.

Schedule K
Interim Appropriation for 2010-2011 Act, 2009

The Schedule enacts the Interim Appropriation for 2010-2011 Act, 2009 which authorizes expenditures for the fiscal year ending on March 31, 2011 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, 2011 that are tabled in the Assembly.

Schedule l
Management board of Cabinet Act

Subsection 2 (2) of the Management Board of Cabinet Act currently provides that the Management Board of Cabinet may have up to six members in addition to the Chair and the Vice-Chair.  The amendment to that subsection changes the maximum number of members to seven members in addition to the Chair and Vice-Chair.

Schedule M
ministry of revenue Act

Currently, section 6.1 of the Ministry of Revenue Act governs certain pension arrangements for eligible former employees of the Ministry of Revenue who, beginning in April 2008, became employees of the Canada Revenue Agency in connection with the transfer of the administration of certain Ontario statutes that impose taxes on corporations. 

Proposed amendments to that section would expand its operation so that it governs those pension arrangements for eligible former employees in the Ministry, or in the Ministry of Finance, who become employees in the federal public service in connection with any prescribed restructuring of tax authority between the Province and Canada and any prescribed transfer of tax administration activities from the Province to Canada.

Schedule n
Ontario Capital Growth Corporation Act, 2008

The Schedule amends the objects of the Ontario Capital Growth Corporation to include dealing with other investments that are prescribed by the regulations made under the Ontario Capital Growth Corporation Act, 2008 and dealing with property in connection with those investments.

The Schedule imposes conditions such as the consent of the Minister of Finance on the power of the Corporation to make temporary investments with money not immediately required to carry out its objects. It removes the restrictions that were previously in the Act with respect to the power of the Corporation to make non-temporary investments to carry out its objects.

Schedule o
Ontario Loan Act, 2009 (No. 2)

The Ontario Loan Act, 2009 (No. 2) is enacted, authorizing the Crown to borrow a maximum of $15.1 billion.

Schedule p
Proceedings Against the Crown Act

Technical amendments are made to subsection 2 (1) of the Proceedings Against the Crown Act.  The names of particular tax statutes are deleted and replaced with a general reference to all statutes that impose a tax payable to the Crown or the Minister of Finance.  Reference to Parts V.1 (Debt Retirement Charge) and VI (Special Payments) of the Electricity Act, 1998 is added.

Schedule q
Professional engineers act

The Professional Engineers Act is amended to provide that sections 3.2, 3.3 and 3.4 of the Business Corporations Act (which govern professional corporations) do not apply to corporations, or to corporations in partnerships of corporations, that have been issued certificates of authorization under the Act.

Schedule r
Retail Sales TAx Act

The Retail Sales Tax Act is amended to provide for the ratification of the Comprehensive Integrated Tax Coordination Agreement entered into by the Minister of Finance on behalf of Ontario and the Minister of Finance for Canada on behalf of the Government of Canada.  The agreement sets out the framework under which the Government of Canada will administer and collect a tax imposed under Part IX of the Excise Tax Act (Canada) in respect of Ontario.  The revenue from this tax will be paid to Ontario in accordance with the agreement.

The amendments to the Act provide for "point of sale" rebates of tax imposed under Part IX of the Excise Tax Act (Canada) in respect of Ontario with respect to,

  (a)   books;

  (b)   children's clothing, footwear and diapers;

  (c)   children's car seats and car booster seats;

  (d)   feminine hygiene products;

  (e)   newspapers; and

   (f)   prepared food and beverages purchased in prescribed circumstances for not more than $4.00.

The "point of sale" rebates will be administered by the Government of Canada.

Section 2.0.0.1 is enacted and sections 2, 2.0.1, 3, 3.1 and 4 of the Act are amended to provide that in most cases tax under the Act is not longer imposed on purchasers after June 30, 2010 in respect of tangible personal property, taxable services and admissions to places of amusement.

New section 2.1.1 of the Act continues and modifies the tax in respect of the purchase of transient accommodation.  The rate of tax, which cannot exceed 3 per cent, is prescribed by the regulations and may vary depending on the location of the transient accommodation in Ontario.

Amendments to section 4.1 of the Act eliminate after June 30, 2010 the tax credit for fuel conservation on the purchase of new passenger cars.

The tax currently imposed under section 4.2 of the Act on purchasers of used motor vehicles is continued and modified after June 30, 2010 to apply as well to purchasers of other types of specified vehicles who are currently taxed under section 2 of the Act.

Subparagraph 38 iii of subsection 7 (1) and paragraph 2 of subsection 9 (3), which refer to the Community Psychiatric Hospitals Act, are repealed.

New section 14.1 of the Act authorizes the Minister of Finance to pay a small business transition support payment to eligible businesses.

A technical correction is made to the French version of clause 9 (2) (e) of the Act.  Other technical and transitional amendments are included in this Schedule.

Schedule s
Securities Act

Part II of the Securities Act, which continued the Financial Disclosure Advisory Board, is repealed.

Subsections 3 (2) and (5) of the Act currently authorize the Ontario Securities Commission to have a maximum of 14 members and two Vice-Chairs.  The amendments to those subsections permit a maximum of 15 members and three Vice-Chairs.

The re-enactment of subsection 29 (3) of the Act expands the types of situations in which a representative's registration with respect to a registrant is automatically suspended under the Act to include situations in which the representative has lost his or her authority to act in a capacity in which he or she must be registered under the Act by reason of changes in employment functions or changes to or the termination of a partnership or agency relationship with the registrant.

The re-enactment of subsection 29 (6) of the Act delays the revocation of registration of a registrant after an automatic suspension of registration under the Act until any proceeding against the registrant under the rules of a self-regulatory organization has been completed.

The re-enactment of paragraph 3 of section 31 of the Act extends the right to a hearing to persons and companies whose registration is suspended automatically under the Act.

Sections 90 and 91 of the Act contain provisions that deem an offeror to have beneficial ownership of securities and that deem a person or company to be acting jointly or in concert with an offeror.  The amendments to section 102 of the Act extend the application of those provisions to acquirors for the purposes of the "early warning" provisions in sections 102.1 and 102.2 of the Act.

Sections 138.8 and 138.9 of the Act are amended to require applicants and appellants to provide notice to the Ontario Securities Commission of court dates for leave applications, trials and appeals and to require the parties to provide copies of relevant factums to the Commission.

Section 138.12 of the Act is re-enacted to authorize the Ontario Securities Commission to intervene in any appeal of a decision relating to an application for leave under section 138.8 of the Act and in any appeal of the decision in an action under section 138.3 of the Act.

The amendment to clause 143 (2) (a.0.1) of the Act corrects the French wording of the clause.

Schedule t
Succession Duty Legislation Repeal Act, 2009

The Succession Duty Legislation Repeal Act, 2009 repeals The Succession Duty Act, to the extent it remains in force and continues to apply under The Succession Duty Repeal Act, 1979, and repeals The Succession Duty Act Supplementary Provisions Act, 1980.  References to succession duty are removed from various other Acts.

Schedule u
Taxation Act, 2007

Subsection 3 (1) of the Taxation Act, 2007 is amended to reduce the "lowest tax rate" applicable in determining an individual's basic personal income tax under the Act from 6.05 per cent to 5.05 per cent.  This amendment is effective for taxation years ending after 2009.

Amendments are made to section 13 of the Act to change the dividend tax credit rates to reflect changes to the corporate income tax rate and maintain the integration of the corporate income tax and personal income tax systems.  This amendment is effective for taxation years ending after 2009.

Section 14 of the Act provides for an overseas employment tax credit for individuals.  A technical amendment, effective January 1, 2009, is made to section 14 to ensure the proper calculation of the tax credit.

Under section 16 of the Act, a 20 per cent surtax is imposed on the basic Ontario tax payable by individuals in excess of $4,257 and a 36 per cent surtax is imposed on basic Ontario tax payable by individuals in excess of $5,370.  Section 16 is amended for taxation years ending after 2009 to decrease the threshold at which the 20 per cent surtax applies to $4,006 and to decrease the threshold at which the 36 per cent surtax applies to $5,127.  These thresholds will be subject to annual adjustments under section 23 of the Act in accordance with a formula based on the Consumer Price Index.

Section 23 of the Act is amended to provide that the indexing of specific dollar amounts set out in the Act will apply for taxation years after 2010 to the surtax thresholds set out in section 16 of the Act as well as dollar amounts that apply for the purposes of the Ontario property tax credit (sections 101.1 and 101.2 of the Act) and the Ontario sales tax credit (section 104.11 of the Act).

The basic rate of income tax payable by corporations under the Act for a taxation year is 14 per cent, as set out in subsection 29 (2) of the Act.  Subsection 29 (2) of the Act is amended to reduce the basic rate of corporate income tax to,

  (a)   12 per cent on July 1, 2010;

  (b)   11.5 per cent on July 1, 2011;

  (c)   11 per cent on July 1, 2012; and

  (d)   10 per cent on July 1, 2013.

For taxation years that straddle these dates, the basic rate of tax is prorated based on the number of days in the year that are before or after the tax rate change.

Amendments are made to the rate of the small business deduction under section 31 of the Act to reduce, as of July 1, 2010, the effective rate of corporate income tax payable by Canadian-controlled private corporations to 4.5 per cent in respect of income from an active business carried on in Canada.

Section 32 of the Act is amended to eliminate, as of July 1, 2010, the small business surtax payable by corporations that claim the small business deduction.

Section 33 of the Act provides corporations with a tax credit in respect of income earned from manufacturing, processing and certain other activities.  Amendments are made to this section to reduce, as of July 1, 2010, the effective rate of corporate income tax payable in respect of income from such activities to 10 per cent.

Technical amendments are made to sections 50 and 53.1 of the Act, effective January 1, 2009, with respect to the political contributions tax credit.  Section 50 of the Act is amended to clarify the order in which a corporation may claim a transitional tax credit under Subdivision d of Division B of Part III of the Act and the political contributions tax credit under section 53.2 of the Act.  Section 53.1 of the Act is amended to correct a reference to the section under which the political contributions tax credit is deducted.

Under section 55 of the Act, corporations are liable to pay a corporate minimum tax in respect of their adjusted net income for a year if they have (or are members of associated groups that have) total assets greater than $5 million or total revenue greater than $10 million.  The rate of the corporate minimum tax, as set out in section 56 of the Act, is 4 per cent of the amount, if any, by which a corporation's adjusted net income exceeds its eligible losses.  Section 55 is amended for taxation years ending after June 30, 2010 to provide that a corporation is liable to pay the corporate minimum tax for a year only if it (or its associated group) has total assets equal to or greater than $50 million and total revenue equal to or greater than $100 million.  Section 56 is amended, effective July 1, 2010, to reduce the rate for determining the corporate minimum tax to 2.7 per cent.

Section 89 of the Act provides an apprenticeship training tax credit to incorporated and unincorporated businesses that hire eligible apprentices in certain designated trades.  The tax credit is 25 per cent (30 per cent for small businesses) of salaries and wages paid in respect of an apprentice during the first 36 months of an apprenticeship program.  The maximum annual credit is $5,000 per apprentice.  The tax credit is available in respect of apprentices that begin their apprenticeship program before January 1, 2012 and in respect of salary and wages paid before January 1, 2015.  Amendments are made to section 89 to eliminate these dates and therefore make the tax credit permanent.  In addition, further amendments to section 89 are made to,

  (a)   increase the tax credit rate of 25 per cent to 35 per cent and the higher 30 per cent rate for small businesses to 45 per cent;

  (b)   increase the maximum annual credit per apprentice to $10,000; and

  (c)   make the tax credit available for salaries and wages paid during the first 48 months of an apprenticeship program.

The amendments to section 89 are effective for expenditures incurred after March 26, 2009.

Section 91 of the Act provides for an Ontario film and television tax credit for qualifying production companies.  A bonus 10 per cent tax credit is allowed under this section in respect of eligible Ontario productions that are regional Ontario productions.  Section 91 is amended to provide that a regional Ontario production will include a production that consists entirely of animation only if no more than 15 per cent of the principal photography in Ontario for the production is done in the Greater Toronto Area.  A technical amendment is also made to the definition of "film studio" in subsection 91 (19) to provide that a film studio includes a building in which activities are carried out in support of animation.  These amendments apply for taxation years ending after 2008.

Qualifying corporations may claim an Ontario production services tax credit under section 92 of the Act in respect of certain foreign-based and non-certified domestic film and television productions in Ontario.  The amendments to section 92 of the Act expand the range of costs that qualify for the tax credit to all qualifying production costs, including a corporation's eligible wage expenditure and eligible service contract expenditure, and to the cost of purchasing or renting certain tangible properties.  These amendments apply to expenditures incurred after June 30, 2009.

Section 93 of the Act provides for an Ontario interactive digital media tax credit in respect of the creation, marketing and distribution of eligible interactive digital media products.  Section 93 is amended to increase, after March 26, 2009, the tax credit rate to 40 per cent for all qualifying corporations that develop and market their own eligible products and to 35 per cent for qualifying corporations that develop products under fee-for-service arrangements.

The Ontario interactive digital media tax credit is further extended, under new section 93.1 of the Act, to qualifying digital game corporations that incur at least $1 million of eligible labour expenditures over any 36-month period for fee-for-service work performed in Ontario in respect of an eligible digital game.  New section 93.1 applies in respect of expenditures incurred after March 26, 2009.  In addition, new section 93.2 of the Act extends the tax credit to specialized digital game corporations that carry on eligible digital game activities in Ontario in a year that are directly attributable to the development of an eligible digital game.  New section 93.2 applies in respect of expenditures incurred after March 26, 2009.

Section 95 of the Act provides for an Ontario book publishing tax credit for Ontario book publishing companies for publishing and promoting literary works by Canadian authors.  The tax credit is available in respect of the first three books by a Canadian author in an eligible category of writing.  Section 95 is amended, for expenditures incurred after March 26, 2009, to extend the credit to any number of books by a Canadian author in an eligible category of writing and to allow corporations to claim the credit in respect of direct expenses that reasonably relate to publishing an electronic version of an eligible book.

Sections 99 and 100 of the Act are amended to provide that the property and sales tax credit may only be claimed for taxation years ending before January 1, 2010.  Section 100 of the Act is also amended so that, for a senior with a qualifying spouse or qualifying common-law partner, the 2009 property and sales tax credit would not begin to be phased out until the senior's adjusted income for the year exceeds $24,750.

New sections 101.1 and 101.2 of the Act provide for the Ontario property tax credit to be paid to qualifying individuals beginning in the 2010 taxation year. The credit is refundable and is based on the individual's occupancy cost for the taxation year.  The credit provides for occupancy cost of up to $250 for non-seniors and $625 for seniors, plus 10 per cent of occupancy cost.  The credit is limited to the occupancy cost for the year and is subject to a maximum of $900 for non-seniors and $1,025 for seniors. The credit is reduced by 2 per cent of adjusted income in excess of $20,000 for single individuals and $25,000 for families.  The credit for seniors may also be reduced if the sum of credit and any senior homeowners' property tax grant received by the taxpayer for the year is greater than occupancy cost for the year.  Consequential amendments are made to sections 144 and 172 of the Act.

New section 101.3 of the Act provides rules relating to the Ontario property tax credit.

New section 104.11 of the Act implements the Ontario sales tax credit.  The credit is refundable and would allow four payments to be made each taxation year to an eligible individual.  The four payments would be made in August and November in the year immediately following the relevant taxation year and in February and May of the second following taxation year.  The first payment will be made in August 2010.  Each payment will equal one quarter of the total of the following:

  (a)   $260 for the individual;

  (b)   $260 if the individual has a qualified relation for the month; and

  (c)   $260 for each of the individual's qualified dependants that the individual has for the month.

The Ontario sales tax credit is reduced by 4 per cent of adjusted income in excess of $20,000 for single individuals and $25,000 for families.  Consequential amendments are made to sections 125, 144 and 172.

New section 104.12 of the Act provides for the payment of an Ontario sales tax transition benefit to eligible individuals.  Section 104.12 provides for the benefit to be paid in three payment months: June 2010, December 2010 and June 2011.  A benefit of $300 would be paid in the three payments ($100 each) to single individuals with adjusted income for the preceding taxation year of $80,000 or less.  This benefit would be phased out where adjusted income exceeds $80,000.  A benefit of $1,000 would be paid in the three payments ($330, $335 and $335) to single parents and to individuals having a spouse or a common law partner, provided that the adjusted income for the preceding taxation year of the parent or individual does not exceed $160,000.  This benefit would be phased out where adjusted income exceeds $160,000.

Technical amendments are made to section 105 of the Act with respect to the calculation of the additional capital gains refund for mutual fund trusts.  These amendments ensure that a mutual fund trust may obtain a refund of basic income tax and surtax paid by the trust in previous taxation years on its capital gains.

Schedule v
teachers' pension Act

The Teachers' Pension Act is amended in connection with changes to the Ontario Teachers' Pension Plan concerning foregone inflation adjustments for members' credited service on or after January 1, 2010.

Currently, section 5 of the Act specifies that contributions to the Plan for a year by the Minister of Education and the employers who contribute under the Plan cannot exceed the contributions by or on behalf of active members of the Plan for their credited service for the year.  Certain exceptions are currently specified.  An additional exception is established by the proposed amendment to section 5.  This additional exception allows the Minister of Education and the employers to make additional contributions to offset the amount by which the inflation adjustments actually received by pensioners have been reduced in a year.

Schedule w
Toronto Futures Exchange Act

The Toronto Futures Exchange Act is repealed.

 

Bill 218 2009

An Act to implement 2009 Budget measures and to enact, amend or repeal various Acts

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 at 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 Alcohol and Gaming Regulation and Public Protection Act, 1996 Architects Act Commodity Futures Act Community Small Business Investment Funds Act Condominium Act, 1998 Co-operative Corporations Act Corporations Tax Act Credit Unions and Caisses Populaires Act, 1994 Education Act Financial Administration Act Interim Appropriation for 2010-2011 Act, 2009 Management Board of Cabinet Act Ministry of Revenue Act Ontario Capital Growth Corporation Act, 2008 Ontario Loan Act, 2009 (No. 2) Proceedings Against the Crown Act Professional Engineers Act Retail Sales Tax Act Securities Act Succession Duty Legislation Repeal Act, 2009 Taxation Act, 2007 Teachers' Pension Act Toronto Futures Exchange 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 Ontario Tax Plan for More Jobs and Growth Act, 2009.

Schedule A
Alcohol and Gaming Regulation and Public Protection Act, 1996

   1.  (1)  Section 1 of the Alcohol and Gaming Regulation and Public Protection Act, 1996 is amended by striking out the portion before the definition of "chair" and substituting the following:

Part I
Alcohol and Gaming Commission of Ontario

Definitions

   1.  In this Part,

.     .     .     .     .

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

"Minister" means the minister responsible for the admin­istration of this Part; ("ministre")

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

Funding

   (1)  Money required for the purposes of this Part shall be paid out of the money appropriated for those purposes by the Legislature.

   (2)  Subsection 8 (2) of the Act is amended by striking out "the Management Board of Cabinet" and substituting "Treasury Board".

   3.  Subsection 12 (1) of the Act is amended by striking out "this Act" in the portion before clause (a) and substituting "this Part".

   4.  Section 14 of the Act is amended by striking out "this Act" and substituting "this Part".

   5.  Section 15 of the Act is amended by striking out "this Act" and substituting "this Part".

   6.  Clause 16 (c) of the Act is amended by striking out "this Act" and substituting "this Part".

   7.  Section 17 of the Act is repealed and the following substituted:

Part II
Beer and Wine TAx

Division A - Interpretation and Obligation to Pay Tax

Definitions

   17.  (1)  In this Part,

"agency store" means a government store established under the Agency Store Program by the Board under its authority described in clause 3 (1) (d) of the Liquor Control Act; ("magasin-agence")

"annual adjustment date" means the day prescribed by the Minister for the purposes of section 26; ("date de rajustement annuel")

"authorized beer manufacturer" means a beer manufacturer licensed under the Liquor Licence Act to sell beer to the Board and includes a manufacturer that has been authorized under the Liquor Control Act to sell its beer in stores that it owns and operates; ("fabricant de bière autorisé")

"beer" means a beverage that is beer for the purposes of the Liquor Licence Act, but does not include a beverage purporting to be beer that contains alcohol obtained by a means other than the fermentation of an infusion or decoction of barley, malt and hops or similar products if the alcohol so obtained increases the total alcohol content of the beverage by more than 0.5 per cent by volume; ("bière")

"beer manufacturer" means,

  (a)  a person who makes beer in Ontario for sale in Ontario, other than a holder of a licence with a brew pub endorsement,

  (b)  a person in Ontario who sells beer in Ontario that is made in Ontario under contract by a person described in clause (a), or

   (c)  a person who makes beer in a province or territory of Canada other than Ontario and who, for the purpose of selling the beer to purchasers in Ontario, ships the beer to a facility in Ontario,

           (i)  at which the person or a wholly-owned subsidiary of the person makes beer at an annual production rate of not less than 2,500 hectolitres of beer, and

          (ii)  at which the annual production capacity is not less than 10,000 hectolitres of beer; ("fabricant de bière")

"beer vendor" means,

  (a)  an authorized beer manufacturer,

  (b)  Brewers' Retail Inc.,

   (c)  the operator of an agency store, or

  (d)  a licensee; ("vendeur de bière")

"Board" means the Liquor Control Board of Ontario; ("Régie")

"brew pub" means premises for which the licensee holds a licence with a brew pub endorsement; ("bistrot-brasserie")

"Commission" means the Alcohol and Gaming Commission of Ontario established under section 2; ("Commission")

"draft beer" means,

  (a)  beer made by a beer manufacturer other than non-draft beer, or

  (b)  beer made at a brew pub; ("bière pression")

"licence" means a liquor sales licence issued under the Liquor Licence Act; ("permis")

"licensee" means a person who holds a licence or permit issued under the Liquor Licence Act; ("titulaire de permis")

"Minister" means the Minister of Revenue or such other member of the Executive Council as may be designated under the Executive Council Act to administer this Part; ("ministre")

"non-draft beer" means beer made by a beer manufacturer for sale in containers each of which has a capacity of less than 18 litres; ("bière non pression")

"non-refillable container" means a container that the manufacturer of a beverage or other person who initially fills the container with the beverage does not intend to refill; ("contenant à remplissage unique")

"Ontario wine" means wine that is Ontario wine for the purposes of the Liquor Licence Act; ("vin de l'Ontario")

"Ontario wine cooler" means Ontario wine or a beverage containing Ontario wine that contains not more than 7 per cent alcohol by volume; ("vin panaché de l'Ontario")

"purchaser" means a person, including the Crown in right of Ontario, who purchases or receives delivery of beer, wine or a wine cooler in Ontario,

  (a)  for use or consumption by the person or by someone else at the person's expense, or

  (b)  on behalf of or as agent for a principal who desires to acquire the beer, wine or wine cooler for use or consumption by the principal or by someone else at the principal's expense; ("acheteur")

"wine" means a beverage that is wine for the purposes of the Liquor Licence Act; ("vin")

"wine cooler" means wine or a beverage containing wine that contains not more than 7 per cent alcohol by volume; ("vin panaché")

"winery" means a person licensed under the Liquor Licence Act to sell wine or wine coolers to the Board and includes a manufacturer that is authorized under the Liquor Control Act to sell its wine and wine coolers in stores that it owns and operates; ("établissement vinicole") 

"winery retail store" means a store in Ontario owned and operated by a winery at which a winery is authorized under clause 3 (1) (e) of the Liquor Control Act to sell wine and wine coolers to purchasers. ("magasin de détail d'établissement vinicole") 

Persons deemed to be purchasers

   (2)  The following persons are deemed to be purchasers in the following circumstances, except as may otherwise be provided by the regulations:

    1.  A beer manufacturer or licensee of a brew pub that distributes beer in Ontario without charge, but only with respect to the beer distributed without charge.

    2.  A beer vendor that purchases beer in Ontario that is not sold to another person, but only with respect to the beer that is purchased and not sold.

    3.  A winery that distributes wine in Ontario without charge, but only with respect to the wine distributed without charge.

    4.  A winery that purchases wine in Ontario that is not sold to another person, but only with respect to the wine that is purchased and not sold.

When purchaser is not subject to tax

   (3)  A purchaser is not subject to tax under this Act in respect of the purchase of beer, wine or a wine cooler,

  (a)  if the purchase is from the Board or from a person who previously purchased the beer, wine or wine cooler from the Board;

  (b)  if the purchase is from a duty-free store within the meaning of subsection 2 (1) of the Customs Act (Canada);

   (c)  if the purchase is of beer or wine made by the purchaser at a location that is a ferment on premises facility for the purposes of the Liquor Licence Act;

  (d)  if the purchaser is an Indian and the purchase of the beer, wine or wine cooler,

           (i)  is made on a reserve,

          (ii)  is from a beer vendor, winery retail store or licensee located on the reserve, and

         (iii)  is for the exclusive use of an Indian;

  (e)  if the purchaser is a person serving in or employed by a diplomatic or consular mission, high commission or trade commission, as authorized by Foreign Affairs and International Trade Canada, or his or her spouse or a family member,

           (i)  if that person is not a Canadian citizen or "permanent resident" of Canada as defined in the Immigration and Refugee Protection Act (Canada), and

          (ii)  if that person is assigned to duty from the state he or she represents and is not engaged locally by the mission or commission; or

    (f)  if the purchase is of wine sold by the glass pursuant to a manufacturer's limited liquor sales licence authorized by the regulations made under the Li­quor Licence Act.

Interpretation, cl. (3) (d)

   (4)  For the purposes of clause (3) (d),

"Indian" has the meaning assigned by subsection 2 (1) of the Indian Act (Canada); ("Indien")

"reserve" means a reserve within the meaning of the Indian Act (Canada) or an Indian settlement located on Crown land, the Indian inhabitants of which are treated by the Government of Canada in the same manner as Indians residing on a reserve. ("réserve")

Affiliates

   (5)  For the purposes of this Act, a corporation is an affiliate of another corporation if one of them is the subsidiary of the other, if both are subsidiaries of a third corporation or if each of them is controlled by the same person or persons.

Rules, re affiliates

   (6)  The following rules apply for the purposes of determining if corporations are affiliates for the purposes of this Act:

    1.  A corporation is a subsidiary of a particular corporation if,

            i.  it is controlled,

                  A.  by the particular corporation,

                  B.  by the particular corporation and one or more other corporations each of which is controlled by the particular corporation, or

                  C.  by two or more corporations each of which is controlled by the particular corporation, or

           ii.  it is a subsidiary of a corporation that is the particular corporation's subsidiary under subparagraph i.

    2.  A particular corporation is controlled by another person or corporation or by two or more corporations if,

            i.  voting securities of the particular corporation carrying more than 50 per cent of the votes for the election of directors are held, otherwise than by way of security only, by or for the benefit of the other person or corporation or by or for the benefit of the other corporations, and

           ii.  the votes carried by the voting securities described in subparagraph i are entitled, if exercised, to elect a majority of the board of directors of the particular corporation.

    3.  For the purposes of paragraph 2,

            i.  a person is deemed to own beneficially securities that are beneficially owned by a corporation controlled by the person or by an affiliate of that corporation, and

           ii.  a corporation is deemed to own beneficially securities that are beneficially owned by its affiliates.

    4.  Unless the regulations provide otherwise, references in paragraphs 2 and 3 to securities are references to securities within the meaning of the Securities Act.

Purchaser subject to tax

   18.  Every purchaser who purchases beer, wine or a wine cooler in Ontario shall pay taxes in respect of the purchase at the time of the purchase to the Crown in right of Ontario in accordance with this Part, unless otherwise provided in this Part or the regulations.

No exemption under another statute unless this Act named

   19.  No person who is subject to tax under this Part is exempt from any tax payable under this Part by reason of an exemption granted to the person or to or in respect of the personal property of the person by or under another Act, unless the provision of the other Act expressly states that the exemption is from tax under this Act.

Division B - Calculation of Tax

Application

   20.  (1)  This Division applies to purchasers in respect of purchases of beer, wine and wine coolers on and after July 1, 2010, but if a later day is prescribed under subsection (2), this Division applies to purchasers only in respect of purchases of beer, wine and wine coolers on and after that later day.

Exception

   (2)  The Lieutenant Governor in Council may make regulations prescribing a day that is after July 1, 2010 as the first day this Division applies to purchasers in respect of purchases of beer, wine and wine coolers.

Same

   (3)  A regulation made under subsection (2) may be made before, on or after July 1, 2010, or any day previously prescribed under subsection (2), and may provide that the regulation is deemed to have come into force on a day before it is filed and to apply to a period before it is filed.

beer

Basic tax, beer made by beer manufacturer

   21.  (1)  A purchaser who purchases beer manufactured by a beer manufacturer shall pay a basic tax in respect of the purchase, calculated at the basic tax rate.

Basic tax rate

   (2)  The basic tax rate for the purposes of subsection (1) in respect of a purchase before the first annual adjustment date is,

  (a)  54.75 cents per litre if the beer is draft beer; or

  (b)  69.75 cents per litre if the beer is non-draft beer.

Same

   (3)  The basic tax rate for the purposes of subsection (1) in respect of a purchase on or after the first annual adjustment date is the rate determined under section 26.

Exception, beer manufactured by microbrewer

   22.  (1)  Despite section 21, the basic tax rate in respect of the purchase of beer manufactured by a beer manufacturer in Ontario that is a microbrewer for the sales year in which the beer is sold is the following, if the purchase is made before the first annual adjustment date:

    1.  18.26 cents per litre if the beer is draft beer.

    2.  19.76 cents per litre if the beer is non-draft beer.

Same

   (2)  If the purchase of beer described in subsection (1) is on or after the first annual adjustment date, the basic tax rate in respect of the purchase is the rate determined under section 26.

Microbrewers

   (3)  For the purposes of this section, a beer manufacturer is a microbrewer for a sales year if,

  (a)  its worldwide production of beer in the previous production year was not more than 50,000 hectolitres or, if this is the first production year in which it manufactures beer, its worldwide production of beer for the production year is expected to be not more than 50,000 hectolitres; and

  (b)  it has not entered into any agreement or other arrangement pursuant to which any beer manufacturer that is not a microbrewer manufactures beer for it.

Worldwide production of beer

   (4)  The following shall be included in determining the amount of a microbrewer's worldwide production of beer for a particular production year for the purposes of this section:

    1.  All beer manufactured during the production year by the microbrewer, whether the beer is manufactured for sale on the microbrewer's account or under contract for another beer manufacturer.

    2.  All beer manufactured during the production year by an affiliate of the microbrewer.

    3.  All beer manufactured during the production year by another microbrewer under contract for the microbrewer.

Definitions

   (5)  In this section,

"production year" means a 12-month period commencing April 1; ("année de production")

"sales year" means a 12-month period commencing July 1. ("année de ventes")

List of microbrewers

   (6)  The Minister shall compile annually and make available to the public for each sales year a list containing the names of beer manufacturers that are microbrewers for the sales year and the names of the brands of beer they manufacture.

Volume tax

   23.  A purchaser of draft or non-draft beer manufactured by a beer manufacturer shall pay a volume tax in respect of the purchase at the volume tax rate of 17.6 cents per litre of beer.

Environmental tax

   24.  A purchaser of non-draft beer or draft beer manufactured by a beer manufacturer shall pay an environmental tax of 8.93 cents for each non-refillable container in which the beer is purchased.

Beer made at brew pub

   25.  (1)  A purchaser of draft beer that was made at a brew pub in Ontario by the holder of the licence with a brew pub endorsement for that brew pub shall pay a basic tax in respect of the purchase if the beer is purchased at the brew pub or at a secondary location related to the brew pub.

Basic tax rate

   (2)  The basic tax rate for the purposes of subsection (1) is,

  (a)  20.90 cents per litre if the purchase is before the first annual adjustment date; or

  (b)  the rate determined under section 26 if the purchase is on or after the first annual adjustment date.

Secondary location related to brew pub

   (3)  A place is a secondary location related to a brew pub for the purposes of this Part if the following conditions are satisfied:

    1.  Draft beer made at the brew pub is sold to a purchaser at the place.

    2.  The place is not part of the brew pub.

    3.  There is a valid licence for the place or the sale of the draft beer at that place is made in accordance with a caterer's endorsement attached to the licence for the brew pub.

    4.  If a separate licence for the place is in effect, the holder of the licence for the brew pub has a direct or indirect ownership interest of at least 51 per cent in the business that sells beer at the place.

Annual adjustment to rate of basic tax

   26.  (1)  The rate of basic tax payable by a purchaser under this Part in respect of the purchase of beer shall be adjusted annually in accordance with this section as of each annual adjustment date.

Calculation of basic tax rate

   (2)  Each basic tax rate, expressed in cents per litre, that is in effect for the period commencing on an annual adjustment date and ending on the day before the next annual adjustment date is calculated using the formula,

A + [A × (B/C – 1)]

in which,

  "A"  is the amount of basic tax per litre of beer that would be payable under this Part if the purchase had been on the day before the annual adjustment date,

  "B"  is the Consumer Price Index for the 12-month period ending the previous November 30, and

  "C"  is the Consumer Price Index for the 12-month period ending November 30 of the year ending before the start of the 12-month period described in the definition of "B".

Same

   (3)  If the basic tax rate for the period ending immediately before an annual adjustment date was determined under this section and was rounded to the nearest one-hundredth of a cent under subsection (4), the amount of basic tax per litre referred to in the definition of "A" in subsection (2) is the amount that would have been determined under this section without rounding.

Rounding

   (4)  If the tax rate expressed in cents per litre that is determined under subsection (2) has three or more decimal places, it is to be rounded to the nearest one-hundredth of a cent or, if the amount is equidistant between two consecutive hundredths of a cent, to the higher hundredth of a cent.

Consumer Price Index

   (5)  In this section, the Consumer Price Index for a 12-month period is the result arrived at by,

  (a)  determining the sum of the Consumer Price Index for Ontario as published by Statistics Canada under the authority of the Statistics Act (Canada) for each month in that period;

  (b)  dividing the sum obtained under clause (a) by 12; and

   (c)  rounding the result obtained under clause (b) to the nearest one-thousandth or, if the result obtained is equidistant between two consecutive thousandths, to the higher thousandth.

wine and wine coolers

Basic tax

Ontario wine or Ontario wine cooler

   27.  (1)  A purchaser who purchases from a winery retail store wine that is Ontario wine or a wine cooler that is an Ontario wine cooler shall pay a basic tax in respect of the purchase at the basic tax rate of 6.1 per cent of the retail price of the wine or wine cooler.

Other wine or wine cooler

   (2)  A purchaser who purchases from a winery retail store wine that is not Ontario wine or a wine cooler that is not an Ontario wine cooler shall pay a basic tax in respect of the purchase at the basic tax rate of 16.1 per cent of the retail price of the wine or wine cooler.

Retail price of wine, etc.

   (3)  The retail price of wine or a wine cooler sold at a winery retail store to a purchaser is the amount fixed by the Board for the wine or wine cooler under the authority of clause 3 (1) (i) of the Liquor Control Act less the sum of, 

  (a)  all taxes imposed under this Act in respect of the purchase of the wine or wine cooler;

  (b)  all taxes imposed under Part IX of the Excise Tax Act (Canada) in respect of the purchase of the wine or wine cooler; and

   (c)  the amount of any deposit on the container containing the wine or wine cooler that is required to be collected or remitted under the Ontario deposit return program referred to in the regulations made under the Liquor Control Act.

Samples

   (4)  If a winery sells a sample of wine or a wine cooler to a purchaser and the amount of tax paid by the purchaser under this Part in respect of the sample is less than the amount of tax, based on the retail price of the wine or wine cooler, that is reasonably allocable by volume to the sample, the winery, as a purchaser, shall pay tax under this Act in an amount equal to the difference. 

Volume tax

   28.  A purchaser who purchases wine or a wine cooler from a winery retail store shall pay a volume tax in respect of the purchase at the volume tax rate of,

  (a)  29 cents per litre, in the case of wine; or

  (b)  28 cents per litre, in the case of a wine cooler.

Environmental tax

   29.  A purchaser who purchases wine or a wine cooler from a winery retail store shall pay an environmental tax of 8.93 cents for each non-refillable container in which the wine or wine cooler is purchased.

Division C - Tax Collection and Remittance

beer

Tax collection and remittance

Collection by beer vendor

   30.  (1)  Every beer vendor that, on or after the first day Division B applies, sells or delivers beer to a purchaser in Ontario shall, as agent of the Minister, collect at the time of the sale or delivery all taxes imposed under this Part on a purchaser in respect of the purchase of the beer.

Remittance by beer vendor

   (2)  Every beer vendor that, on or after the day referred to in subsection (1), purchases or receives delivery of beer from Brewers Retail Inc. or an authorized beer manufacturer shall pay to Brewers Retail Inc. or the authorized beer manufacturer an amount on account of all taxes imposed under this Part on a purchaser in respect of the purchase of the beer.

Collection by Brewers Retail Inc.

   (3)  Brewers Retail Inc. shall, on the sale or delivery of beer to a licensee or agency store in Ontario on or after the day referred to in subsection (1), collect from the licensee or agency store at the time of the sale or delivery, as agent of the Minister, an amount on account of all taxes imposed under this Part on a purchaser in respect of the purchase of the beer.

Remittance by Brewers Retail Inc.

   (4)  Brewers Retail Inc. shall pay amounts collected under subsection (3) to the authorized manufacturers from whom it purchased beer, allocating the amounts collected among the authorized manufacturers based on its purchases of beer from each of them.

Collection by authorized beer manufacturer

   (5)  Every authorized beer manufacturer that, on or after the day referred to in subsection (1), sells or delivers beer to Brewers Retail Inc., an agency store or a licensee in Ontario shall, as agent of the Minister, collect from Brewers Retail Inc., the agency store or the licensee at the time of the sale or delivery an amount on account of all taxes imposed under this Part on a purchaser in respect of the purchase of the beer.

Remittance by authorized beer manufacturer

   (6)  Every authorized beer manufacturer that collects amounts on account of taxes as required under this section shall remit all amounts collected to the Minister in accordance with the regulations.

Remittance by operator of secondary location

   (7)  The operator of every place that is a secondary location related to a brew pub shall pay to the licensee of the brew pub, in accordance with the regulations and at the time of purchasing or receiving delivery of draft beer made at the brew pub, an amount on account of all taxes imposed under Division B on a purchaser in respect of the purchase of the draft beer.

Collection by licensee of brew pub

   (8)  Every licensee of a brew pub shall, on the sale or delivery of draft beer made at the brew pub to the operator of a place that is a secondary location related to the brew pub, collect at the time of the sale or delivery, as agent of the Minister, from the operator of the secondary location an amount on account of all taxes imposed under Division B on a purchaser in respect of the purchase of the draft beer.

Remittance by licensee of brew pub

   (9)  Every licensee of a brew pub shall remit to the Minister in accordance with the regulations all taxes collected under subsection (1) at the brew pub from purchasers of draft beer made at the brew pub and all amounts collected as required under subsection (8).

wine and wine coolers

Method of tax collection, wine and wine coolers

   31.  (1)  Every winery that, on or after the first day Division B applies, sells or delivers wine or a wine cooler to a person at a winery retail store shall, as agent of the Minister, collect at the time of the sale or delivery all taxes imposed under Division B on a purchaser in respect of the purchase of the wine or wine cooler.

Tax remittance

   (2)  Every winery that collects taxes as required under subsection (1) shall remit the taxes to the Minister in accordance with the regulations.

Tax remittance through affiliate

   (3)  Despite subsection (2), a winery that is a corporation may remit the taxes to a corporation that is an affiliate of the winery, and the affiliate shall collect the taxes, as agent for the Minister, and shall remit the taxes to the Minister in accordance with the regulations.

Division D - Administration

Definition

   32.  In this Division,

"collector" means a beer vendor, a winery or, if it remits taxes to the Minister, an affiliate of a winery.

Tax held in trust

Definitions

   33.  (1)  In this section,

"secured creditor" means a person who has a security interest in the property of another person or who acts for or on behalf of that person with respect to the security interest, and includes a trustee appointed under a trust deed relating to a security interest, a receiver or receiver-manager appointed by a secured creditor or by a court on the application of a secured creditor and any other person performing a similar function; ("créancier garanti")

"security interest" means any interest in property that secures payment or performance of an obligation, and includes an interest created by or arising out of a debenture, mortgage, lien, pledge, charge, deemed or actual trust, assignment or encumbrance of any kind whenever arising, created or deemed to arise or otherwise provided for, but does not include a security interest prescribed by the Minister as one to which this section does not apply. ("sûreté")

Deemed trust

   (2)  Every amount collected or collectable by a collector under Division C as or on account of tax payable under this Part is deemed, despite any security interest in the amount collected or collectable, to be held in trust for the Crown in right of Ontario and is deemed to be held separate and apart from the property of the collector and from property held by any secured creditor that but for the security interest would be the property of the collector, and shall be paid over by the collector in accordance with Division C and the regulations.

Extension of trust

   (3)  Despite any provision of this or any other Act, if at any time an amount deemed by subsection (2) to be held in trust is not paid as required under Division C or the regulations by the collector, property of the collector and property held by any secured creditor that but for a security interest would be property of the collector, equal in value to the amount deemed to be held in trust is deemed,

  (a)  to be held, from the time the amount was collected or became collectable by the collector, separate and apart from the property of the collector, in trust for the Crown in right of Ontario, whether or not the property is subject to a security interest; and

  (b)  to form no part of the estate or property of the collector from the time the amount was collected or became collectable, whether or not the property has in fact been kept separate and apart from the estate or property of the collector and whether or not the property is subject to a security interest.

Same

   (4)  The property described in subsection (2) is deemed to be beneficially owned by the Crown in right of Ontario despite any security interest in the property or in the proceeds of the property, and the proceeds of the property shall be paid to the Minister in priority to all security interests in the property.

Minister's certificate

   (5)  Every person who, as assignee, liquidator, administrator, receiver, receiver-manager, secured or unsecured creditor or agent of the creditor, trustee or other like person, other than a trustee appointed under the Bankruptcy and Insolvency Act (Canada), takes control or possession of the property of a collector shall, before distributing the property or the proceeds from the realization of the property under that person's control, obtain from the Minister a certificate that the amount deemed by subsection (2) to be held in trust, including any interest and penalties payable by the collector, has been paid or that security acceptable to the Minister has been given.

No distribution without Minister's certificate

   (6)  Any person described in subsection (5) who distributes any property described in that subsection or the proceeds of the realization of the property without having obtained the certificate required by that subsection is personally liable to the Crown in right of Ontario for an amount equal to the amount deemed by subsection (2) to be held in trust, including any interest and penalties payable under this Part by the collector.

Notice to be given

   (7)  The person described in subsection (5) shall, within 30 days after the day on which the person assumed possession or control of the property, give written notice of the assumption of possession or control of the property to the Minister.

Minister to advise of indebtedness

   (8)  As soon as practicable after receiving a notice given under subsection (7), the Minister shall notify the person described in subsection (5) of the amount deemed by subsection (2) to be held in trust, including any interest and penalties related to that amount.

Assessment re amounts held in trust

   (9)  The Minister may assess the amount that a person is liable for under subsection (6), and the assessed amount is deemed to be tax collectable or collected, as the case may be, by the person.

Application

   (10)  This section applies in respect of any amount as or on account of tax collected or collectable by a collector under Division C whether the security interest was acquired before or after this section comes into force.

Security

   34.  (1)  The Minister may require a collector to deposit with the Minister security in a form and of a kind acceptable to the Minister.

Minister may apply security

   (2)  If a collector that has deposited security with the Minister under subsection (1) fails to collect or remit an amount as or on account of tax as required under this Part,

  (a)  the Minister may apply the security in whole or in part to the amount that should have been collected or remitted; and

  (b)  if the Minister takes the action described in clause (a), the Minister shall forthwith give written notice of the action to the collector by registered mail or personal service.

Assignment of book debts

   35.  If a collector makes an assignment of its book debts, whether by way of specific or general assignment, or in any other manner disposes of its present or future right to collect its book debts, the assignment does not include the portion of the book debts that the collector, as agent for the Minister, charged the person to whom the collector sold the beer, wine or wine cooler as or on account of tax, and any such assignee or any other person who collects the book debts is deemed to be a collector under this Division and shall collect, remit and account under this Part and the regulations for the unassigned portion.

Requirement to submit returns

   36.  (1)  Every collector required under Division C to collect tax or an amount on account of tax shall, if required to do so by the regulations, deliver a return to the Minister in accordance with the regulations.

Extended time for submitting returns

   (2)  The Minister may enlarge the time for submitting a return before or after the time prescribed by the regulations for submitting it.

Records and books of account

   37.  (1)  Every collector shall keep records and books of account in accordance with the rules prescribed by the regulations.

Location of records and books of account

   (2)  Records and books of account required to be kept under subsection (1) must be kept,

  (a)  at the collector's place of business or residence in Ontario; or

  (b)  at a place in Ontario or elsewhere approved in writing by the Minister, under any terms and conditions the Minister may impose. 

Requirement by Minister to keep records

   (3)  If, in the opinion of the Minister, a collector fails to keep adequate records and books of account for the purposes of this Part, the Minister may, by notice in writing, require the collector to keep, and the collector shall keep, such records and books of account as are specified in the notice.

Records retention period

   (4)  Every collector shall retain all records and books of account, and every account and voucher necessary to verify the information contained in the records and books of account, until such time as all terms or conditions as may be prescribed by the regulations have been satisfied.

Audit and examination

   38.  (1)  A person authorized by the Minister for any purpose related to the administration or enforcement of this Part may at all reasonable times enter any premises or place where a collector carries on business or keeps rec­ords or books of account, including electronic records, and may,

  (a)  audit or examine the records and books of account and any account, voucher, letter, telegram or other document that relates to or may relate to the tax imposed by this Part or any return required under this Part;

  (b)  examine the property described by an inventory or any property, process or matter, an examination of which may, in his or her opinion, assist in determining the accuracy of an inventory or in ascertaining the information that is or should be in the books or the amount of any tax imposed by this Part;

   (c)  require a collector or his, her or its employees or agents to give all reasonable assistance with the audit or examination and to answer all proper questions relating to the audit or examination either orally or, if so required in writing, on oath or by statutory declaration and for that purpose may require the person to attend at the premises or place. 

Obstruction

   (2)  No person shall obstruct or interfere with a person authorized by the Minister under subsection (1) in the exercise of his or her powers under this section.

Inventory report

   (3)  The Minister may, at any time for a purpose related to the administration or enforcement of this Part or the regulations, require a collector to complete an inventory report in a form acceptable to the Minister showing all draft beer, non-draft beer, wine and wine coolers in the possession of the collector, and the collector shall complete and provide the inventory report to the Minister within such time as the Minister directs. 

Demand for information

   39.  For the purpose of obtaining any information that the Minister considers necessary for the purposes of this Part, the Minister may demand from any person such information as is indicated in a letter delivered personally or sent by registered mail to the person, and the person shall furnish to the Minister all such information in the person's personal possession or under the person's control, in writing, within such reasonable period of time after the delivery or sending of the letter as is specified in the letter.

Assessment of tax collected

   40.  (1)  The Minister may, at any time, assess or reassess an amount collected by a collector under this Part,

  (a)  if the collector has failed to submit a return in accordance with this Part or the regulations;

  (b)  if the collector has failed to remit an amount collected under this Part in accordance with this Part or the regulations; or

   (c)  if a return submitted by the collector under this Part is not substantiated by the collector's records.

Deemed to have been collected

   (2)  An amount assessed or reassessed by the Minister under subsection (1) is deemed to be the amount collected by the collector and required to be remitted to the Minister by the collector.

Minister not bound by returns

   (3)  The Minister is not bound by any return submitted by a collector or by any information furnished by or on behalf of a collector and may, whether or not a return has been submitted, make an assessment at any time of the amount required to be collected on account of tax or paid as tax by the collector.

Continuing liability

   (4)  A collector remains liable to remit all amounts collected under this Part even if the Minister has not made an assessment or has made an incorrect or incomplete assessment.

Penalty for non-collection

   41.  (1)  The Minister may assess a penalty against a collector that fails to collect an amount required to be collected under this Part.

Amount of penalty

   (2)  The amount of the penalty that may be assessed against a collector under subsection (1) is determined as follows:

    1.  If the Minister reasonably believes that the collector's failure to collect the amount is attributable to neglect, carelessness, wilful default or fraud, the penalty is the sum of,

            i.  the amount that the collector failed to collect, and

           ii.  the greater of $100 and 25 per cent of the amount the collector failed to collect.

    2.  If paragraph 1 does not apply, the penalty is equal to the amount that the collector failed to collect.

Penalty, failure to submit a return

   (3)  The Minister may assess a penalty against a collector that fails to submit a return in accordance with this Part and the regulations.

Same

   (4)  The amount of the penalty that may be assessed against a collector under subsection (3) is determined using the formula,

A × B

in which,

  "A"  is the sum of 10 per cent of the amount the collector was required to collect during the period to which the return relates and 5 per cent of the amount of any tax payable by the collector under this Part during the period to which the return relates, and

  "B"  is the number of months or part months commencing with the month in which the return was required to be submitted and ending with the month in which the return is submitted.

Penalty, failure to remit tax with return

   (5)  The Minister may assess a penalty against a collector who fails to remit, with a return made under this Part or the regulations, the tax collectable or payable by the collector equal to 10 per cent of the tax collectable or 5 per cent of the tax payable by the collector, as the case may be, for the period covered by the return.

If collector subsequently collects

   (6)  If the collector subsequently collects the amount the collector was required to collect during a period and in respect of which the collector paid a penalty under subsection (1), the collector may retain the collected amount.

Assessing purchasers and collectors

   42.  (1)  Subject to subsections (2) to (5), the Minister may assess or reassess,

  (a)  tax payable by a purchaser, within four years after the day on which the tax becomes payable;

  (b)  a penalty under subsection 41 (1) for failing to collect an amount under this Part, within four years after the day the amount was required to be collected; and

   (c)  a penalty under subsection 41 (3) for failing to submit a return within four years after the day on which the return was required to be submitted.

No time limit if neglect, carelessness, etc.

   (2)  Despite subsection (1), if the Minister establishes that a collector has made a misrepresentation that is attributable to neglect, carelessness or wilful default or has committed any fraud in making a return, in supplying information under this Part or in omitting to disclose information under this Part, subsection (1) does not apply, and the Minister may assess or reassess the amount required to be remitted or the tax, interest or penalty for which the collector is liable at any time the Minister considers reasonable.

Exception, waiver of limitation

   (3)  The Minister may assess or reassess a purchaser or collector at any time if the purchaser or collector has filed with the Minister a waiver in a form approved by the Minister before the expiry of the applicable time limit set out in subsection (1). 

Revocation of waiver

   (4)  If a person files a waiver under subsection (3), the person may file a notice of revocation of the waiver in a form approved by the Minister.

Effect of revocation

   (5)  If a person files a notice of revocation of the waiver under subsection (4), the Minister shall not issue an assessment or reassessment in reliance on the waiver more than one year after the day on which the notice of revocation is filed.

Requirement to pay penalties

   43.  Every collector against whom the Minister assesses a penalty under this Part shall pay the penalty when assessed for it.

Interest

   44.  (1)  If on a particular day a debt as calculated under subsection (2) is payable by a person, the person shall pay interest in accordance with the regulations on the amount of the debt from that day to the day the amount is received by the Minister.

Amount of debt calculation

   (2)  In this section, the amount of the debt payable by a person under this Part at a particular day is the amount by which "A" exceeds "B" where,

  "A"  is the sum of,

         (a)  all amounts of or on account of tax under this Part that were payable or collectable by the person before that day,

         (b)  all penalties assessed under this Part against the person at any time before that day,

          (c)  all refunds taken under this Part that are disallowed in respect of a period of time ending before that day, and

         (d)  all interest payable by the person under this section before that day, and

  "B"  is the sum of,

         (a)  all amounts of or on account of tax that were paid or remitted by the person under this Part before that day and the amount of any refund owing under any other Act that was applied by the Minister to the person's liabilities under this Part before that day,

         (b)  the amount of all refunds taken under this Part before that day, and

          (c)  all interest credited to the person before that day. 

Compounding

   (3)  The interest under subsection (1) is compounded daily to the day on which it is paid.

Minimum liability

   (4)  If the amount of interest payable by a person under this section is less than a minimum amount to be determined from time to time by the Minister, no interest is payable by the person under this section.

Interest on penalties

   (5)  For the purposes of this section, interest on a penalty assessed under this Part is calculated from the first day the default occurred to which the penalty applies, not from the day the penalty is assessed.

Exemption from payment of interest

   (6)  If, owing to special circumstances, it is considered inequitable to demand from a person all or part of the interest otherwise payable, the Minister may exempt the person from payment of all or part of the interest.

Notice of assessment

   45.  (1)  When the Minister assesses or reassesses an amount as or on account of tax or interest or a penalty under this Part, the Minister shall serve by prepaid mail or by personal service a notice of assessment on the person assessed and that person shall remit or pay to the Minister all amounts assessed and not previously remitted or paid by the person, together with any interest payable under this Part, whether or not an objection or appeal is outstanding.

Assessment valid and binding

   (2)  Any assessment or reassessment made under this Part, subject to being varied or vacated on an objection or appeal and subject to a reassessment, is deemed to be valid and binding despite any error, defect or omission in it or in any proceeding under this Part relating to it.

Overpayments

   46.  (1)  If a collector remits or pays to the Minister more money for a period than was required to be remitted or paid under this Part, the Minister shall,

  (a)  subject to subsection (2), refund the overpayment to the collector; or

  (b)  at the option of the Minister, apply the overpayment to the collector's liability with respect to another period and notify the collector of that action.

Limitation

   (2)  The Minister shall not make a refund under subsection (1),

  (a)  unless an application for the refund is made to the Minister within four years after the day the remittance or payment was made in respect of which the collector is seeking a refund; and

  (b)  unless evidence satisfactory to the Minister is provided to establish the entitlement of the collector to the refund. 

Saving

   (3)  If the result of an assessment or reassessment or the final decision of a court in a proceeding commenced under section 56 is that a collector has made an overpayment under this Part, the Minister shall,

  (a)  refund the overpayment to the collector without requiring the collector to comply with subsection (2); or

  (b)  at the option of the Minister, apply the overpayment to the collector's liability with respect to another period and notify the collector of that action.

Interest on overpayments

   (4)  Interest at the rate or rates determined under the regulations, computed and compounded daily, shall be paid or applied to the amount refunded or applied to another liability from the day that is 30 days after application is made for repayment to the day the overpayment is refunded or applied, but only if the amount is not less than a minimum amount to be determined from time to time by the Minister.

Same

   (5)  If it is finally determined by a decision of the Minister under section 55 or by a decision of the court that an amount to be remitted or paid under this Part by a collector is less than the amount assessed or reassessed to which objection was made or from which an appeal was taken, the interest payable or to be allowed under subsection (4) shall be determined in accordance with the regulations made for the purposes of this subsection.

Application to other liabilities

   (6)  If a collector is about to become liable to remit or pay an amount under this Part or is liable or about to become liable to remit or make a payment under another Act administered by the Minister that imposes a tax or is prescribed by the regulations, the Minister may apply the amount of an overpayment made by the collector to that liability and shall notify the collector if the Minister takes that action. 

Refund to beer vendor, sale on reserve

   47.  (1)  A beer vendor who sells beer to a person who is exempt from the payment of tax imposed by this Part may apply to the Minister through the authorized manufacturer that manufactured the beer for a refund of the amount paid by the beer vendor on account of taxes under this Part in respect of the beer.

Same

   (2)  If the Minister considers it appropriate to do so, the Minister may require a beer vendor referred to in subsection (1) to apply directly to the Minister for refunds described in that subsection and, upon notification by the Minister to the beer vendor and the authorized manufacturer, no further refunds shall be made through the authorized manufacturer.

Assessment re excess refund

   48.  (1)  The Minister may assess a person who has received a refund under this Part to which the person is not entitled or in excess of the amount to which the person is entitled.

Amount of assessment for refund

   (2)  An assessment under subsection (1) shall be for the amount to which the person was not entitled and for interest at the rate or rates determined under the regulations from the day of payment of the refund. 

Explanation

   (3)  An assessment under subsection (2) shall be accompanied by a brief written explanation of why the person is not entitled to the amount specified in the assessment.

Deemed to be tax owing

   (4)  The amount specified in the assessment is deemed to be tax owing to the Crown in right of Ontario, and the sections of this Part relating to notices of assessment, objections, appeals and the collection of amounts owing under this Part apply with necessary modifications to the amount.

Penalty, misrepresentation in application for refund

   49.  The Minister may deny all or part of the amount of a refund claimed by a person or entity under this Part, and may assess a penalty against the person or entity in an amount not more than the amount denied, if the person or entity or another person on their behalf misrepresented a material fact on or in connection with the application for the refund or in a document referred to in or delivered in support of the application.

Recovery of amounts payable under this Part

   50.  (1)  On default of payment of an amount assessed under this Part,

  (a)  the Minister may bring an action for the recovery of the amount in any court in which a debt or money demand of a similar amount may be collected, and every such action shall be brought and executed in and by the name of the Minister or his or her name of office and may be continued by his or her successor in office as if no change had occurred and shall be tried without a jury; and

  (b)  the Minister may issue a warrant directed to the sheriff for an area in which any property of a person or entity liable to make a payment or remittance under this Part is located or situate for the amount owing by the person or entity, for interest on that amount from the day of the issue of the warrant and for the costs and expenses of the sheriff, and the warrant has the same force and effect as a writ of execution issued out of the Superior Court of Justice. 

Security

   (2)  If the Minister considers it advisable to do so, the Minister may accept security for the payment of any amount payable under this Part in any form the Minister considers appropriate.

Compliance to be proved by affidavit

   (3)  For the purpose of any proceeding taken under this Part, the facts necessary to establish compliance on the part of the Minister with this Part as well as the failure of any person or entity to comply with the requirements of this Part shall, unless evidence to the contrary satisfactory to the court is adduced, be sufficiently proved in any court of law by affidavit of the Minister or an employee in the Ministry of Revenue who has knowledge of the facts.

Remedies for recovery of tax

   (4)  The use of any of the remedies provided under this Part does not bar or affect any of the other remedies under this Part, and the remedies provided by this Part for the recovery and enforcement of the payment of any amount payable or required to be remitted under this Part are in addition to any other remedies existing by law, and no action or other proceeding taken in any way prejudices, limits or affects any lien, charge or priority existing under this Part or at law in favour of the Crown in right of Ontario.

Same

   (5)  Neither the prosecution of a person for an offence under this Part nor the assessment and enforcement of any penalty under this Part suspends or affects any remedy for the recovery of any amount payable or required to be remitted under this Part.

Lien on real property

   51.  (1)  Any amount payable or required to be remitted under this Part by a person or entity is, upon registration by the Minister in the proper land registry office of a notice claiming a lien and charge conferred by this section, a lien and charge on any interest the person or entity liable to pay or remit the amount has in the real property described in the notice. 

Lien on personal property

   (2)  Any amount payable or required to be remitted under this Part by any person or entity is, upon registration by the Minister with the registrar under the Personal Property Security Act of a notice claiming a lien and charge under this section, a lien and charge on any interest in personal property in Ontario owned or held at the time of registration or acquired afterwards by the person or entity liable to pay or remit the amount.

Amounts included and priority

   (3)  The lien and charge conferred by subsection (1) or (2) is in respect of all amounts the person or entity is required to pay or remit under this Part at the time of registration of the notice or any renewal of it and all amounts that the person or entity is required to pay or remit afterwards while the notice remains registered and, upon registration of a notice of lien and charge, the lien and charge has priority over,

  (a)  any perfected security interest registered after the notice is registered;

  (b)  any security interest perfected by possession after the notice is registered; and

   (c)  any encumbrance or other claim that is registered against or that otherwise arises and affects the property of the person or entity after the notice is registered.

Exception

   (4)  For the purposes of subsection (3), a notice of lien and charge under subsection (2) does not have priority over a perfected purchase money security interest in collateral or its proceeds and is deemed to be a security interest perfected by registration for the purpose of the priority rules under section 28 of the Personal Property Security Act. 

Lien effective

   (5)  A notice of lien and charge under subsection (2) is effective from the time assigned to its registration by the registrar or branch registrar and expires on the fifth anniversary of its registration unless a renewal notice of lien and charge is registered under this section before the end of the five-year period, in which case the lien and charge remains in effect for a further five-year period from the day the renewal notice is registered.

Same

   (6)  If any amount required to be paid or remitted has not been paid or remitted as required under this Part at the end of the period, or its renewal, referred to in subsection (5), the Minister may register a renewal notice of lien and charge; the lien and charge remains in effect for a five-year period from the day the renewal notice is registered, until the amount is fully paid, and shall be deemed to be continuously registered since the initial notice of lien and charge was registered under subsection (2).

If person or entity is not the registered owner

   (7)  If a person or entity has an interest in real property but is not shown as its registered owner in the proper land registry office,

  (a)  the notice to be registered under subsection (1) shall recite the interest of the person or entity in the real property; and

  (b)  a copy of the notice shall be sent to the registered owner at the owner's address to which the latest notice of assessment under the Assessment Act has been sent.

Secured party

   (8)  In addition to any other rights and remedies, if any amount owed by the person or entity remains outstanding and unpaid, the Minister has, in respect of a lien and charge under subsection (2),

  (a)  all the rights, remedies and duties of a secured party under sections 17, 59, 61, 62, 63 and 64, subsections 65 (4), (5), (6) and (7) and section 66 of the Personal Property Security Act;

  (b)  a security interest in the collateral for the purpose of clause 63 (4) (c) of that Act; and

   (c)  a security interest in the personal property for the purposes of sections 15 and 16 of the Repair and Storage Liens Act, if it is an article as defined in that Act.

Registration of documents

   (9)  A notice of lien and charge under subsection (2) or any renewal of it shall be in the form of a financing statement or a financing change statement as prescribed under the Personal Property Security Act and may be tendered for registration at a branch office established under Part IV of that Act, or by mail addressed to an address prescribed under that Act.

Errors in documents

   (10)  A notice of lien and charge or any renewal of it is not invalidated nor is its effect impaired by reason only of an error or omission in the notice or in its execution or registration, unless a reasonable person is likely to be materially misled by the error or omission. 

Bankruptcy and Insolvency Act (Canada) unaffected

   (11)  Subject to Crown rights provided under section 87 of the Bankruptcy and Insolvency Act (Canada), nothing in this section affects or purports to affect the rights and obligations of any person under that Act. 

Effect of deemed trust

   (12)  The registration of a notice of lien and charge under this section does not affect the operation of section 33 and applies to secure any liability of a person or entity in addition to any deemed trust under that section. 

Definitions

   (13)  In this section, a reference to real property includes a reference to fixtures attached to the real property and an interest in real property includes a leasehold interest in real property.

Garnishment

   52.  (1)  If the Minister has knowledge or suspects that a person or entity (a "third party") is, or within 365 days will become, indebted or liable to make a payment to a person or entity (a "debtor") required to pay or remit an amount under this Part, the Minister may, by registered letter or by letter served personally, require the third party to promptly pay to the Minister any money that is otherwise payable by the third party to the debtor in whole or in part during the 365 days after the third party receives the letter.

Minister's receipt discharges original liability

   (2)  The receipt of the Minister for money paid as required under this section is a good and sufficient discharge of the original liability to the extent of the payment.

Same

   (3)  Despite any provision of this or any other Act, if the Minister has knowledge or suspects that a person or entity is, or within 365 days will become, indebted or liable to make any payment,

  (a)  to a person or entity whose property is subject to a deemed trust created by section 33; or

  (b)  to a secured creditor who has a right to receive the payment that, but for a security interest in favour of the secured creditor, would be payable to the person or entity referred to in clause (a),

the Minister may by ordinary mail or by demand served personally, require the first-named person to pay forthwith to the Minister on account of the liability of the person or entity referred to in clause (a) all or part of the money that would otherwise be paid, and the payment shall become the property of the Crown in right of Ontario despite any security interest in it and shall be paid to the Minister in priority to the security interest.

Liability of debtor

   (4)  Every person or entity who has discharged any liability to a person or entity required to pay or remit an amount under this Part without complying with the requirements of this section is liable to pay to the Minister an amount equal to the liability discharged or the amount that the person or entity was required under this section to pay to the Minister, whichever is the lesser amount.

Service of garnishee

   (5)  If a person or entity (a "third party") who is, or within 365 days will become, indebted or liable to make a payment to a person or entity required to pay or remit an amount under this Part carries on business under a name or style other than the third party's own name, the letter under this section from the Minister to the third party may be addressed using the name or style under which the third party carries on business and, in the case of personal service, the letter is deemed to be validly served if it is left with an adult employed at the place of business of the addressee.

Same

   (6)  If persons ("partners") who are, or within 365 days will become, indebted or liable to pay an amount to a person or entity required to pay or remit an amount under this Part carry on business in partnership, the letter under this section from the Minister to the partners may be addressed to the partnership name and, in the case of personal service, the letter is deemed to be validly served if it is served on a partner or left with an adult employed at the place of business of the partnership.

Limitation

   (7)  Subsections (1) to (6) are subject to the Wages Act.

Application to court

   (8)  The Minister may apply to the Superior Court of Justice for an order, and the court may make the order, requiring any person or entity to comply with a requirement under this section to pay money that the person or entity has failed, without reasonable excuse, to pay to the Minister.

Assessment, non-arm's length transfers

   53.  (1)  In this section,

"member of his or her family" means, in relation to a transferor, the parent, spouse, grandparent, child, grandchild, son-in-law, daughter-in-law, father-in-law or mother-in-law of the transferor; ("membre de sa famille")

"spouse" means spouse as defined in section 29 of the Family Law Act. ("conjoint") 

Liability to pay

   (2)  If at any time a person transfers property (including money), either directly or indirectly, by means of a trust or by any other means, to a member of his or her family, to an individual who is less than 18 years old at the time of the transfer, or to another person or entity with whom the transferor is not dealing at arm's length, the transferor and transferee are jointly and severally liable to pay under this Part the amount determined under subsection (4).

Same

   (3)  For the purpose of subsection (2), persons are deemed not to deal with each other at arm's length if they are deemed not to deal with each other at arm's length for the purposes of the Income Tax Act (Canada).

Amount payable

   (4)  The amount referred to in subsection (2) is the lesser of "A" and "B" where,

  "A"  is the amount, if any, by which the fair market value of the property transferred, at the time of the transfer, exceeds the fair market value, at the time of the transfer, of the consideration given by the transferee for the transfer, and

  "B"  is the sum of all amounts, each of which is,

         (a)  any amount payable by the transferor under this Part at or before the time of the transfer that has not been paid,

         (b)  any amount collected or collectable by the transferor that has not been remitted as required under this Part, or

          (c)  any penalty or interest for which the transferor is liable under this Part at the time of the transfer.

Same

   (5)  Nothing in subsection (2) or (4) limits the liability of the transferor or transferee under any other provision of this Part. 

Assessment

   (6)  The Minister may assess a transferee at any time in respect of any amount payable by reason of this section, and the provisions of this Part relating to notices of assessment, objections, appeals and the collection of amounts owing under this Part apply with necessary modifications.

Effect of payment

   (7)  If a transferor and transferee are jointly and severally liable to pay an amount under this section,

  (a)  a payment by the transferee on account of the transferee's liability discharges the joint liability, to the extent of the payment; and

  (b)  a payment by the transferor on account of the transferor's liability under this Part discharges the transferee's liability under this section to the extent that the payment reduces the balance of the transferor's liability under this Part to an amount less than the amount of the transferee's liability under this section.

Exception

   (8)  Subsection (2) does not apply with respect to a transfer of property, including money, between spouses,

  (a)  under a decree, order or judgment of a competent tribunal; or

  (b)  under a written separation agreement if, at the time of the transfer, the transferor and transferee were living separate and apart as a result of a breakdown of their relationship. 

Liability of corporate directors

   54.  (1)  If a corporation failed to collect an amount required to be collected under this Part or collected the amount but failed to remit it to the Minister or has failed to pay any interest or penalty related to the failure to collect or remit an amount in accordance with this Part and the regulations, the directors of the corporation at the time the corporation was required to collect or remit the amount or to pay the interest or penalty are jointly and severally liable, with the corporation, to pay those amounts.

Exception

   (2)  A director of a corporation is not liable under subsection (1) unless,

  (a)  a warrant of execution for the amount of the corporation's liability as described in subsection (1) has been issued under section 50 and the warrant has been returned by the sheriff unsatisfied in whole or in part;

  (b)  the corporation has become bankrupt due to an assignment or receiving order or it has filed a notice of intention to file or a proposal under the Bankruptcy and Insolvency Act (Canada), and a claim for the amount of the corporation's liability referred to in subsection (1) has been proven within six months after the date of the assignment, receiving order or filing of the proposal; or

   (c)  the corporation becomes subject to a proceeding to which section 33 applies and a claim is made by the Minister during the period beginning on the day on which the Minister should have been advised of the commencement of those proceedings and ending on the day that is six months after the remaining property of the collector has been finally disposed of. 

Prudent director

   (3)  A director of a corporation is not liable for a failure described in subsection (1) if the director exercised the degree of care, diligence and skill to prevent the failure that a reasonably prudent person would exercise in comparable circumstances.

Assessment

   (4)  The Minister may assess a person for an amount payable by the person under this section and, if the Minister sends a notice of assessment, the provisions of this Part relating to notices of assessment, objections, appeals and the collection of amounts owing under this Part apply with necessary modifications.

Time limit

   (5)  The Minister shall not issue a notice of assessment to a person for an amount assessed under subsection (4) more than two years after the person last ceased to be a director of the corporation.

Execution

   (6)  If the warrant of execution referred to in clause (2) (a) has been issued, the amount recoverable from a director is the amount remaining unsatisfied after execution.

Same

   (7)  If a director of a corporation pays an amount in respect of a corporation's liability described in subsection (1) that is proved in liquidation, dissolution or bankruptcy proceedings, the director is entitled to any preference that the Crown in right of Ontario would be entitled to had the amount not been paid and, if the warrant of execution has been issued under section 50, the director is entitled to the assignment of the warrant of execution to the extent of the director's payment, and the Minister is authorized to make the assignment.

Allocation by the Minister

   (8)  For the purposes of this section, the Minister may, at his or her discretion, determine how the payment or payments made by or on behalf of the corporation under this Part are to be applied with respect to amounts the corporation is liable to pay or remit under this Part.

objections and appeals

Notice of objection

   55.  (1)  A person who objects to an assessment made against the person under this Part may, within 180 days after the day of mailing of the notice of assessment, serve on the Minister a notice of objection in the form approved by the Minister.

Facts and reasons to be given

   (2)  The notice of objection must,

  (a)  clearly describe each issue raised by way of objection; and

  (b)  fully set out the facts and reasons relied on by the person in respect of each issue.

Same

   (3)  If a notice of objection does not fully set out the facts and reasons relied on by the person in respect of an issue, the Minister may in writing request the person to provide the information, and the person is deemed to have complied with clause (2) (b) in respect of the issue if the person provides the information to the Minister in writing within 60 days after the day the request is made by the Minister.

Limitation

   (4)  A person shall not raise, by way of objection under this section to a reassessment or to a variation of an assessment under subsection (7), any issue that the person is not entitled to raise by way of appeal under section 56 in respect of the reassessment or a variation of the assessment.

Service

   (5)  A notice of objection under this section must be served by being sent by registered mail addressed to the Minister or by such other method of service as the Minister prescribes.

Computation of time

   (6)  For the purpose of calculating the number of days mentioned in subsection (1) or (3) or 56 (1), the day on which a notice of assessment is mailed, a request is made under subsection (3) or a notification is given under subsection (7) is the day stated in the notice of assessment, request or notification.

Reconsideration

   (7)  Upon receipt of the notice of objection, the Minister shall with all due dispatch reconsider the assessment objected to and vacate, confirm or vary the assessment or reassess, and the Minister shall notify the person making the objection of his or her action in writing.

Appeal

   56.  (1)  When the Minister has given the notification required under subsection 55 (7), the person who served the notice of objection may appeal to the Superior Court of Justice to have the assessment vacated or varied, but no appeal under this section shall be instituted after the expiry of 90 days after the day the notification was mailed to the person under subsection 55 (7).

Appeal, how instituted

   (2)  An appeal to the Superior Court of Justice is instituted by,

  (a)  filing with the court a notice of appeal in the form approved by the Minister;

  (b)  paying a fee to the court in the same amount and manner as the fee payable under regulations made under the Administration of Justice Act on the issue of a statement of claim; and

   (c)  serving on the Minister a copy of the notice of appeal as filed.

Limitation

   (3)  A person is entitled to raise by way of appeal only those issues raised by the person in the notice of objection to the assessment being appealed from and in respect of which the person has complied or is deemed to have complied with subsection 55 (2).

Exception

   (4)  Despite subsection (3), a person may raise by way of appeal an issue forming the basis of a reassessment or a variation of an assessment if the issue was not part of the assessment with respect to which the person served the notice of objection. 

Waived right of objection or appeal

   (5)  Despite subsection (1), no person shall institute an appeal under this section to have an assessment vacated or varied in respect of an issue for which the right of objection or appeal has been waived in writing by or on behalf of the person.

Service

   (6)  A notice of appeal must be served on the Minister by being sent by registered mail addressed to the Minister.

Statement of allegations

   (7)  The person appealing shall set out in the notice of appeal a statement of the allegations of fact and the statutory provisions and reasons that the person intends to submit to support the appeal.

Reply to notice of appeal

   (8)  The Minister shall with all due dispatch serve on the person appealing and file in the court a reply to the notice of appeal admitting or denying the facts alleged and containing a statement of such further allegations of fact and all statutory provisions and reasons that the Minister intends to rely on and, if the Minister fails to serve the reply within 180 days after the day of service on him or her of the notice of appeal,

  (a)  the appellant may, on 21 days notice to the Minister, bring a motion before a judge of the Superior Court of Justice for an order requiring the reply to be served within such time as the judge shall order;

  (b)  the judge may, if he or she considers it proper in the circumstances, also order that, upon failure by the Minister to serve the reply in the time specified in the order, the assessment with respect to which the appeal is taken shall be vacated and any amount paid pursuant to the assessment or any disallowed refund that is the subject of the appeal shall be repaid or refunded to the appellant.

Appeal procedure

   (9)  On the filing of the material referred to in subsection (8) with the Superior Court of Justice, the matter is deemed to be an action in the court.

Facts not set out may be pleaded

   (10)  Any fact or statutory provision not set out in the notice of appeal or reply may be pleaded or referred to in such manner and upon such terms as the court may direct.

Disposal of appeal

   (11)  The court may dispose of the appeal by,

  (a)  dismissing it;

  (b)  allowing it; or

   (c)  allowing it and,

           (i)  vacating the assessment,

          (ii)  varying the assessment,

         (iii)  restoring the assessment, or

         (iv)  referring the assessment back to the Minister for reconsideration and reassessment. 

Court may order payment or refund

   (12)  The court may, in delivering judgment disposing of an appeal, order that a payment or refund be made by the appellant or the Minister, as the case may be, and may make such order as to costs as is considered proper.

Appeal proceedings closed to public

   (13)  Proceedings under this section are to be closed to the public if requested by the appellant or the Minister.

Appeals, Superior Court of Justice practice to govern

   (14)  The practice and procedure of the Superior Court of Justice, including the right of appeal and the practice and procedure relating to appeals, apply to every matter deemed to be an action under this section, and every judgment and order given or made in every such action may be enforced in the same manner and by the like process as a judgment or order given or made in an action commenced in the court.

Irregularities, etc., directory provisions

   57.  An assessment shall not be vacated or varied on appeal by reason only of any irregularity, informality, omission or error on the part of any person in the observation of any directory provision of this Part.

Application under subrule 14.05 (2), Rules of Civil Procedure

   58.  (1)  If the following conditions are satisfied, a person may make an application under subrule 14.05 (2) of the Rules of Civil Procedure to a judge of the Superior Court of Justice:

    1.  The application is to determine one or more issues of law that depend solely on the interpretation of,

            i.  this Part or the regulations, or

           ii.  this Part or the regulations and another Ontario statute or regulation.

    2.  The Minister has indicated in writing that the Minister is satisfied that it is in the public interest for the applicant to make the application. 

    3.  The Minister and the applicant have executed a statement of agreed facts on which they both intend to rely and the applicant files the statement as part of the applicant's application record.

    4.  No facts remain in dispute between the Minister and the applicant that either of them believes may be relevant to the determination of any issue of law that is a subject of the application. 

Application of rule 38.10, Rules of Civil Procedure

   (2)  Rule 38.10 of the Rules of Civil Procedure does not apply to an application referred to in this section, except that the presiding judge may, on the hearing of the application, adjourn the application in whole or in part and with or without terms under clause 38.10 (1) (a) of the Rules of Civil Procedure.

Disposition of application

   (3)  The court may dispose of an application that is authorized under this section by,

  (a)  making a declaration of law in respect of one or more issues of law forming the subject of the application;

  (b)  declining to make a declaration of law in respect of any of the issues of law forming the subject of the application; or

   (c)  dismissing the application.

Effect of declaration of law

   (4)  No declaration of law made on an application under this section,

  (a)  is binding on the Minister and the applicant except in relation to the facts agreed to by them in the proceeding; or

  (b)  otherwise affects the rights of the Minister or the applicant in any appeal instituted under this Part.

No applications under subrule 14.05 (3)

   (5)  No person other than the Minister may bring an application under subrule 14.05 (3) of the Rules of Civil Procedure in respect of any matter arising under this Part.

Other proceedings

   (6)  On the motion of the Minister, the court shall dismiss a proceeding commenced by an application under rule 14.05 of the Rules of Civil Procedure relating to a matter under this Part or the regulations if any condition in subsection (1) has not been satisfied or the application is prohibited under subsection (5).

Extension of time to object or appeal

   59.  The time within which a notice of objection is to be served or an appeal is to be instituted may be extended by the Minister if application for the extension is made,

  (a)  in respect of a notice of objection,

           (i)  before the expiry of the time limit under subsection 55 (1), or

          (ii)  within one year from the day of mailing or delivery by personal service of the notice of assessment that is the subject of the objection if the person wishing to object furnishes to the Minister an explanation satisfactory to the Minister of why the notice of objection could not be served in accordance with subsection 55 (1); or

  (b)  with respect to an appeal, before the expiry of the time limit under subsection 56 (1).

offences

Offences

Failure to submit return or remit tax

   60.  (1)  Every collector that fails to submit a return or remit an amount on account of tax to the Minister in accordance with this Part and the regulations is guilty of an offence and, in addition to any penalty that may be assessed under this Part, is liable on conviction to a fine of,

  (a)  not less than $500; and

  (b)  not more than the sum of $10,000 plus twice the amount on account of tax collected or required to be collected during the period to which the return relates.

False statements, etc.

   (2)  Every person is guilty of an offence who has,

  (a)  made, or participated in, assented to or acquiesced in the making of false or deceptive statements in a return, statement or answer, delivered or made as required under this Part or the regulations;

  (b)  to evade collection or remittance of a tax imposed by this Part, destroyed, altered, mutilated, secreted or otherwise disposed of records or books of account;

   (c)  made, assented to or acquiesced in the making of false or deceptive entries or omitted, or assented to or acquiesced in the omission to enter a material particular in records or books of account; or

  (d)  wilfully, in any manner, evaded or attempted to evade compliance with this Part.

Same, amount of fine, imprisonment, etc.

   (3)  A person who is guilty of an offence under subsection (2) is liable on conviction, in addition to any penalty that may be assessed under this Part,

  (a)  to a fine of,

           (i)  not less than the greater of $500 and 25 per cent of the amount on account of tax collected or required to be collected during the period to which the return relates, and

          (ii)  not more than the sum of $10,000 plus twice the amount on account of tax collected or required to be collected during the period to which the return relates;

  (b)  to imprisonment for a term of not more than two years; or

   (c)  to both a fine under clause (a) and imprisonment under clause (b).

Failure to collect tax

   (4)  Every collector that fails to collect an amount on account of tax as required under this Part is guilty of an offence and, in addition to any penalty that may be assessed under this Part, is liable on conviction to a fine equal to the sum of,

  (a)  the amount that should have been collected, as determined under subsection (5); and

  (b)  an amount not less than $500 and not more than the sum of $10,000 and twice the amount referred to in clause (a). 

Determination of amount that should have been collected

   (5)  The Minister shall determine the amount that should have been collected by a collector from such information as is available to the Minister and shall issue a certificate as to the amount, but, except where the Minister considers that there has been a deliberate evasion of this Part, the Minister shall not consider a period of more than four years in determining the amount that should have been collected. 

Certificate of amount

   (6)  In any prosecution under subsection (4), a certificate signed or purported to be signed by the Minister stating the amount that should have been collected by a collector is proof, in the absence of evidence to the contrary, of the amount the collector should have collected and of the authority of the person giving or making the certificate without any proof of appointment or signature. 

Obtaining refund by deceit, falsehood, etc.

   (7)  Every person who, by deceit, falsehood or any other fraudulent means, obtains or attempts to obtain a refund under this Part to which the person is not entitled is guilty of an offence and is liable on conviction,

  (a)  to,

           (i)  a fine of not less than $500 and not more than $10,000, and

          (ii)  an additional fine of not more than twice the amount of the refund the person obtained or sought to obtain;

  (b)  to imprisonment for a term of not more than two years; or

   (c)  to both the fines under clause (a) and imprisonment under clause (b).

Offence

   (8)  Every person who contravenes or fails to comply with any of the following provisions is guilty of an offence and is liable on conviction to a fine of $50 multiplied by the number of days the person contravened the provision or failed to comply with the provision:

    1.  Section 37.

    2.  Clause 38 (1) (c).

    3.  Subsection 38 (2).

General offence

   (9)  Every person who contravenes or fails to comply with any provision of this Part or the regulations is guilty of an offence and, if no other fine is provided under this Part on conviction of the offence, is liable on conviction to a fine, in addition to any penalty that may be assessed under this Part, of not less than $100 and not more than $5,000. 

Same

   (10)  Every individual who directed, authorized, assented to, acquiesced in or participated in the commission of any act or an omission which is an offence under this Part and for which a corporation, association or other entity would be liable to prosecution under this Part is guilty of an offence and on conviction is liable to the punishment provided for the offence, whether or not the corporation, association or other entity has been prosecuted or convicted. 

Limitation

   (11)  Proceedings shall not be commenced in respect of an offence under this Part more than six years after the day on which the offence was, or is alleged to have been, committed.

evidence

Admission of evidence

   61.  (1)  The Minister, or a person authorized by the Minister, may, for any purpose relating to the administration or enforcement of this Part, reproduce from original data stored electronically any document previously issued by the Minister under this Part, and the electronically reproduced document is admissible in evidence and shall have the same probative force as the original would have had if it had been proved in the ordinary way.

Same

   (2)  If a return, document or any other information has been delivered by a person to the Minister on computer disk or other electronic medium, or by electronic filing as permitted under the regulations, a document, accompanied by the certificate of the Minister, or of a person authorized by the Minister, stating that the document is a print-out of the return, document or information received by the Minister from the person and certifying that the information contained in the document is a true and accurate representation of the return, document or information delivered by the person, is admissible in evidence and shall have the same probative force as the original return, document or information would have had if it had been delivered in paper form.

Same

   (3)  If the data contained on a return or other document received by the Minister from a person is stored electronically by the Minister on computer disk or other electronic medium and the return or other document has been destroyed by a person so authorized by the Minister, a document, accompanied by the certificate of the Minister or of a person authorized by the Minister stating that the document is a print-out of the data contained on the return and other document received and stored electronically by the Minister and certifying that the information contained in the document is a true and accurate representation of the data contained on the return or document delivered by the person, is admissible in evidence and shall have the same probative force as the original return or document would have had if it had been proved in the ordinary way.

confidentiality

Confidentiality

   62.  (1)  Except as authorized by this section, no person employed by the Government of Ontario, the Board or the Commission shall,

  (a)  knowingly communicate or knowingly allow to be communicated to any person any information obtained by or on behalf of the Minister for the purposes of this Part; or

  (b)  knowingly allow any person to inspect or to have access to any record or thing obtained by or on behalf of the Minister for the purposes of this Part.

Non-disclosure

   (2)  Despite any other Act, but subject to subsection (3), no person employed by the Government of Ontario, the Board or the Commission shall be required, in connection with any legal proceedings,

  (a)  to give evidence relating to any information obtained by or on behalf of the Minister for the purposes of this Part; or

  (b)  to produce any record or thing obtained by or on behalf of the Minister for the purposes of this Part. 

Exceptions

   (3)  Subsections (1) and (2) do not apply in respect of,

  (a)  criminal proceedings under any Act of the Parliament of Canada;

  (b)  proceedings in respect of the trial of any person for an offence under an Act of the Legislature; or

   (c)  proceedings relating to the administration or enforcement of this Act or the collection or assessment of an amount under this Part.

Same

   (4)  A person employed by the Government of Ontario, the Board or the Commission may, in the course of his or her duties in connection with the administration or enforcement of this Part,

  (a)  communicate or allow to be communicated to an official or authorized person employed by the Government of Ontario, the Board or the Commission in the administration and enforcement of any law any information obtained by or on behalf of the Minister for the purposes of this Part; and

  (b)  allow an official or authorized person employed by the Government of Ontario, the Board or the Commission in the administration or enforcement of any law to inspect or have access to any record or thing obtained by or on behalf of the Minister for the purposes of this Part. 

Copies

   (5)  Despite anything in this Act, the Minister may permit a copy of any record or thing obtained by the Minister or on the Minister's behalf for the purposes of this Part to be given to,

  (a)  the person from whom the record or thing was obtained;

  (b)  any person,

           (i)  for the purposes of any objection or appeal that has been or may be taken by that person under this Part arising out of any assessment of tax, interest or penalties under this Part in connection with which the record or thing was obtained, or

          (ii)  by whom any amount payable under this Part is payable or has been paid;

   (c)  the legal representative of a person mentioned in clause (a) or (b); or

  (d)  an agent authorized in writing by a person mentioned in clause (a) or (b) to act as their agent.

Disclosure to other jurisdictions

   (6)  Despite anything in this or any other Act, the Minister may permit information or a copy of any record or thing obtained by the Minister or on the Minister's behalf for the purposes of this Part to be given to,

  (a)  a minister of the Government of Canada or any officer or employee employed under a minister of the Government of Canada for the purposes of administering or enforcing an Act of the Parliament of Canada imposing any tax or duty; or

  (b)  a minister of the government of any province or territory of Canada or officer or employee employed under that minister, for the purposes of administering or enforcing an Act or ordinance of the Legislature of that province or territory imposing any tax or duty,

if the minister of the Government of Canada or the minister of the government of the province or territory, as the case may be, is permitted to give to the Minister information or copies of any record or thing obtained by or on behalf of the minister of the Government of Canada, or the minister of the government of that province or territory, as the case may be, in the administration or enforcement of that Act for the purposes of the administration or enforcement of this Act. 

Communication with the Commission

   (7)  The Minister may disclose, or allow to be disclosed, information necessary for the administration and enforcement of the tax imposed by this Part to an official of the Commission or the Board.

Offence

   (8)  Every person,

  (a)  who contravenes subsection (1); or

  (b)  to whom information has been provided under the authority of subsection (4), (5), (6) or (7) who uses, communicates or allows to be communicated such information for any purposes other than that for which it was provided,

is guilty of an offence and is liable on conviction to a fine of not more than $2,000.

the commission

Commission functions

   63.  (1)  If requested to do so by the Minister, the Commission shall act as an agent of the Crown to collect tax and other amounts payable under this Part.

Compensation

   (2)  The Minister may reimburse the Commission for any costs the Commission incurs in carrying out its functions under this Part as agent of the Crown and such reimbursement shall be paid out of money appropriated for that purpose by the Legislature.

Commission may collect and use information

   (3)  The Commission may, for the purposes of carrying out its functions under subsection (1), collect and use information,

  (a)  obtained in the course of carrying out its functions under this Part; or

  (b)  disclosed to it by the Minister.

Commission and Board may disclose information

   (4)  The Commission and the Board may, for the purposes of the administration and enforcement of this Part, disclose to the Minister information obtained in the course of carrying out their functions under this Part.

Same

   (5)  The Minister may collect and use information disclosed by either the Commission or the Board to the Minister for the purposes of administering and enforcing this Part.

Deemed collection

   (6)  Despite any other Act, all information collected by the Minister from the Commission or the Board under this Part is deemed to be information collected directly by the Minister from the person or entity from whom the Commission or Board collected the information.

Commission resolutions revoked

   64.  The following resolutions and portions of resolutions of the Commission are of no force or effect on and after the first day Division B applies:

    1.  The resolution dated February 20, 1998 adopting clauses 14 (1) (a), (b) and (d) of Regulation 720 of the Revised Regulations of Ontario, 1990 (Manufacturers' Licences) made under the Liquor Licence Act, as those clauses read before August 29, 2002, relating to the 2 per cent winery store fee for wine and wine coolers, the volume levy for wine and the environmental levy for wine and wine coolers.

    2.  Sections 2, 3 and 4 of the resolution dated April 30, 2003, as amended, relating to the basic fee on duty free sales and a volume levy and environmental levy for beer.

    3.  The resolution entitled "Revised Fee Brew Pub Endorsement" dated June 4, 2004.

    4.  The resolution entitled "Revised Beer Fees" dated June 4, 2004, relating to the basic fee for beer manufacturers and microbreweries.

    5.  The resolution entitled "Revised Fee for Manufacturers of Wine Coolers" dated June 4, 2004, relating to the volume levy for wine coolers.

tax-included pricing

Tax-included pricing

   65.  (1)  All beer sold by beer vendors to purchasers and all wine and wine coolers sold by wineries at winery retail stores to purchasers shall be made available for sale at a price that includes all taxes payable under this Part by a purchaser on the purchase of the beer, wine or wine cooler.

Obligation to make information on taxes available to purchaser

   (2)  Beer vendors and wineries shall make available to purchasers such information with respect to the amount of taxes included in the price as the Minister specifies and shall make the information available by a method approved by the Minister.

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

Division E - Retroactive Tax

Application

   66.  Sections 67 to 69,

  (a)  apply in respect of the purchase of beer, wine and wine coolers on and after January 1, 2007 and before the first day Division B applies; and

  (b)  are retroactive to the extent necessary to give them effect on and after January 1, 2007.

   9.  The Act is amended by adding the following sections:

draft and non-draft beer

Tax, beer

Basic tax

   67.  (1)  A purchaser who, on or after January 1, 2007 and before the first day Division B applies, purchases beer in Ontario shall pay a basic tax in respect of the purchase at the rate of,

  (a)  55.55 cents per litre if the beer is non-draft beer; or

  (b)  40.55 cents per litre if the beer is draft beer.

Exception re draft beer manufactured at a brew pub

   (2)  Despite subsection (1), if draft beer is manufactured at a brew pub by the holder of a licence with a brew pub endorsement and is purchased at the brew pub or at a secondary location related to the brew pub, the rate of basic tax in respect of the purchase is,

  (a)  6.70 cents per litre if the draft beer was purchased at the brew pub; or

  (b)  24.30 cents per litre if the draft beer was purchased at the secondary location.

Volume tax

   (3)  A purchaser who, on or after January 1, 2007 and before the first day Division B applies, purchases draft beer made by a beer manufacturer or non-draft beer shall pay a volume tax in respect of the purchase at the volume tax rate of 17.6 cents per litre of beer.

Environmental tax

   (4)  A purchaser who, on or after January 1, 2007 and before the first day Division B applies, purchases draft beer made by a beer manufacturer or non-draft beer shall pay an environmental tax of 8.93 cents for each non-refillable container in which the beer is purchased.

wine and wine coolers

Tax, wine and wine coolers

Basic tax

   68.  (1)  A purchaser who, on or after January 1, 2007 and before the first day Division B applies, purchases wine or a wine cooler at a winery retail store shall pay to the Crown in right of Ontario a basic tax in respect of the purchase of the wine or wine cooler at the basic tax rate of 2 per cent of the selling price of the wine or wine cooler.

Selling price

   (2)  For the purposes of subsection (1), the selling price of wine or a wine cooler sold at a winery retail store to a purchaser is the amount fixed by the Board for the wine or wine cooler under the authority of clause 3 (1) (i) of the Liquor Control Act less the sum of,

  (a)  the volume tax imposed under subsection (3) and the environmental tax imposed under subsection (4);

  (b)  the amount of tax imposed under subsection 2 (2) of the Retail Sales Tax Act in respect of the purchase of the wine or wine cooler;

   (c)  all taxes imposed under Part IX of the Excise Tax Act (Canada) in respect of the purchase of the wine or wine cooler; and

  (d)  the amount of any deposit on the container containing the wine or wine cooler that is required to be collected or remitted under the Ontario deposit return program referred to in the regulations made under the Liquor Control Act.

Volume tax

   (3)  A purchaser who, on or after January 1, 2007 and before the first day Division B applies, purchases wine or a wine cooler at a winery retail store shall pay to the Crown in right of Ontario a volume tax in respect of the wine or wine cooler at the volume tax rate of,

  (a)  29 cents per litre for wine; or

  (b)  28 cents per litre for a wine cooler.

Environmental tax

   (4)  A purchaser who, on or after January 1, 2007 and before the first day Division B applies, purchases wine or a wine cooler in Ontario shall pay an environment tax of 8.93 cents for each non-refillable container in which the wine or wine cooler is purchased.

tax collection

Tax deemed to be paid

   69.  (1)  Every purchaser who is subject to tax under this Part in respect of the purchase of beer, wine or a wine cooler on or after January 1, 2007 and before the first day Division B applies is deemed to pay the tax at the time he or she purchases the beer, wine or wine cooler.

Tax deemed to be collected

   (2)  Every beer vendor, winery and affiliate of a winery who sells beer, wine or a wine cooler on or after January 1, 2007 and before the first day Division B applies in respect of which fees have been paid pursuant to a resolution or the portion of a resolution described in section 64,

  (a)  is deemed to collect the tax payable under this Division in respect of the beer, wine or wine cooler at the time the beer, wine or wine cooler is sold; and

  (b)  is deemed to remit the tax to the Commission as agent for the Minister at the time the fees are paid.

Same

   (3)  All amounts deemed under subsection (2) to be collected and remitted are deemed to be collected and retained by the Minister as payment for and in respect of tax payable under this Division.

   10.  The Act is amended by adding the following sections:

Division F - Forms and Regulations

Forms

   70.  The Minister may approve the use of forms for any purpose of this Part and the forms may require the provision of such information as the Minister may require.

Regulations

Lieutenant Governor in Council

   71.  (1)  The Lieutenant Governor in Council may make regulations defining terms or expressions used in this Part that are not defined in this Part.

Minister of Finance

   (2)  The Minister of Finance may make regulations,

  (a)  prescribing anything referred to in this Part as prescribed by the regulations;

  (b)  prescribing rules relating to records and books of account to be maintained by collectors, including rules relating to their content and when they may be destroyed;

   (c)  prescribing rules for the payment of tax and for the collection and remittance of amounts on account of tax;

  (d)  prescribing rules relating to returns and the submission of returns by collectors;

  (e)  providing for the calculation and payment of interest on amounts paid in excess of amounts payable under this Part and prescribing the rate of interest or the manner of determining the rate of interest;

    (f)  providing for the refund of tax or amounts on account of tax, in whole or in part, owing to special circumstances and prescribing the terms and conditions under which the refund may be made;

  (g)  governing the procedures to be followed for a person or class of persons to obtain the benefit of an exemption from tax under subsection 17 (3) or to obtain a refund under section 46 or 47.

Retroactive

   (3)  A regulation made under this Part may come into force before the day it is filed and apply in respect of a period before the regulation is filed.

Division G - Transitional

Inventory report

   72.  (1)  The Minister may require a beer vendor or a class of beer vendors to complete an inventory report showing the total amount of draft and non-draft beer in their possession immediately before the first day Division B applies.

Tax remittance

   (2)  The following rules apply if the Minister requires a beer vendor to comply with subsection (1):

    1.  The beer vendor is deemed to buy the beer in its inventory for resale immediately before the first day Division B applies.

    2.  The beer vendor shall remit to the Minister, in the manner required by the Minister, the difference between the fees paid with respect to the beer pursuant to a resolution or portion of a resolution described in section 64 and the tax collectable by the beer vendor on the beer under Division C.

Complementary Amendments

   11.  (1)  Subsection 6 (6) of the Liquor Licence Act is repealed and the following substituted:

Effect of default under tax statute

   (6)  Despite any other provision of this Act, the Registrar shall not renew or transfer a licence to sell liquor or a licence to operate a ferment on premises facility and no person is entitled to the renewal or transfer of either of those licences if the holder of the licence is in default of filing a return or paying any tax, interest or penalty assessed under the Retail Sales Tax Act or Part II of the Alcohol and Gaming Regulation and Public Protection Act, 1996.

   (2)  Subsection 13 (2) of the Act is repealed and the following substituted:

Exception, default under tax statute

   (2)  Subsection (1) does not apply in respect of a licence to sell liquor or to operate a ferment on premises facility if the holder of the licence is in default of filing a return or of paying any tax, interest or penalty assessed under the Retail Sales Tax Act or Part II of the Alcohol and Gaming Regulation and Public Protection Act, 1996.

Commencement

   12.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Ontario Tax Plan for More Jobs and Growth Act, 2009 receives Royal Assent.

Same

   (2)  Sections 8, 9 and 11 come into force on a day to be named by proclamation of the Lieutenant Governor.

Schedule B
Architects Act

   1.  Section 14 of the Architects Act is amended by adding the following subsection:

Exclusion

   (2.1)  Sections 3.2, 3.3 and 3.4 of the Business Corporations Act do not apply to a corporation that has been issued a certificate of practice under this section.

   2.  Section 16 of the Act is amended by adding the following subsection:

Exclusion

   (2)  Sections 3.2, 3.3 and 3.4 of the Business Corporations Act do not apply to a corporation that is a partner in a partnership of corporations that has been issued a certificate of practice under this section.

Commencement

   3.  This Schedule is deemed to have come into force on November 1, 2001.

Schedule C
Commodity Futures Act

   1.  Subsection 65 (1) of the Commodity Futures Act is amended by adding the following paragraph:

  1.1  Prescribing circumstances in which a suspended registration is or may be reinstated.

Commencement

   2.  This Schedule comes into force on the day the Ontario Tax Plan for More Jobs and Growth Act, 2009 receives Royal Assent.

Schedule D
Community Small Business Investment Funds Act

   1.  (1)  Clause (c) of the definition of "eligible investor" in subsection 12 (1) of the Community Small Business Investment Funds Act is amended by striking out "or (b.1)" at the end.

   (2)  The English version of subsection 12 (3) of the Act is amended by striking out "labour sponsored investment corporation" in the portion before paragraph 1 and substituting "labour sponsored investment fund corporation".

   2.  The definition of "A" in subsection 14.1 (2) of the Act is repealed and the following substituted:

  "A"  is,

         (a)  if the corporation issued the share on or before March 1, 2010,

                   (i)  20 per cent if the corporation issued the share as a research oriented investment fund, or

                  (ii)  15 per cent in any other case,

         (b)  if the corporation issued the share after March 1, 2010 and on or before March 1, 2011,

                   (i)  15 per cent if the corporation issued the share as a research oriented investment fund, or

                  (ii)  10 per cent in any other case,

          (c)  if the corporation issued the share after March 1, 2011 and on or before February 29, 2012,

                   (i)  10 per cent if the corporation issued the share as a research oriented investment fund, or

                  (ii)  5 per cent in any other case, or

         (d)  0, if the corporation issued the share after February 29, 2012, and

   3.  Clause 18.11 (4) (a) of the Act is amended by striking out "January 1, 2011" and substituting "January 1, 2010".

   4.  Subsection 19 (1) of the Act is amended by striking out "and" at the end of clause (d) and by adding the following clause:

(d.1) investments purchased from a labour sponsored investment fund corporation,

           (i)  if the investment corporation purchasing and holding the investments is a labour sponsored investment fund corporation, and

          (ii)  if, immediately before they were purchased, the investments were eligible investments of the labour sponsored investment fund corporation that sold them; and

   5.  (1)  Clause 27 (2) (a) of the Act is repealed and the following substituted:

  (a)  the sum of,

           (i)  15 per cent of the equity capital received by the corporation in respect of all Class A shares of the corporation,

                 (A)  that were then outstanding less than eight years immediately preceding the date of revocation, surrender of registration, winding-up or dissolution, and

                 (B)  that were issued on or before March 1, 2010,

          (ii)  10 per cent of the equity capital received by the corporation in respect of all Class A shares of the corporation,

                 (A)  that were then outstanding less than eight years immediately preceding the date of revocation, surrender of registration, winding-up or dissolution, and

                 (B)  that were issued after March 1, 2010 and on or before March 1, 2011, and

         (iii)  5 per cent of the equity capital received by the corporation in respect of all Class A shares of the corporation,

                 (A)  that were then outstanding less than eight years immediately preceding the date of revocation, surrender of registration, winding-up or dissolution, and

                 (B)  that were issued after March 1, 2011 and on or before February 29, 2012; and

   (2)  Subsection 27 (2.1) of the Act is repealed and the following substituted:

Repayment of tax credits re surrender of registration, wind up, etc.

   (2.1)  A labour sponsored investment fund corporation that makes a request under section 26 to surrender its registration under this Act or that proposes to wind up or dissolve shall immediately pay to the Minister an amount of money equal to the sum of,

  (a)  the total of all amounts, each of which is the amount in respect of a Class A share of the capital stock of the particular corporation originally acquired on or before March 1, 2010 and outstanding immediately before the particular time that is determined using the formula,

A × B

in which,

         "A"  is,

                 (a)  if the original acquisition of the share was before May 7, 1996 and less than five years before the particular time, 4 per cent of the consideration received by the particular corporation for the issue of the share,

                 (b)  if the original acquisition of the share was after May 6, 1996 and less than eight years before the particular time, 1.875 per cent of the consideration received by the particular corporation for the issue of the share, or

                  (c)  in any other case, nil, and

         "B"  is,

                 (a)  if the original acquisition of the share was before May 6, 1996, the number obtained when the number of whole years throughout which the share was outstanding before the particular time is subtracted from five, or

                 (b)  in any other case, the number obtained when the number of whole years throughout which the share was outstanding is subtracted from eight;

  (b)  the total of all amounts, each of which is the amount in respect of a Class A share of the capital stock of the particular corporation originally acquired after March 1, 2010 and on or before March 1, 2011 and outstanding immediately before the particular time that is determined using the formula,

C × D

in which,

         "C"  is 1.25 per cent, and

         "D"  is the number obtained when the number of whole years throughout which the share was outstanding is subtracted from eight; and

   (c)  the total of all amounts, each of which is the amount in respect of a Class A share of the capital stock of the particular corporation originally acquired after March 1, 2011 and on or before February 29, 2012 and outstanding immediately before the particular time that is determined using the formula,

E × F

in which,

         "E"  is 0.625 per cent, and

         "F"  is the number obtained when the number of whole years throughout which the share was outstanding is subtracted from eight.

   (3)  Subsection 27 (4.1) of the Act is amended by striking out "and" at the end of clause (a) and by repealing clause (b) and substituting the following:

  (b)  15 per cent of the amount received in respect of Class A shares issued within the immediately preceding eight years and within the period commencing May 7, 1996 and ending March 1, 2010;

   (c)  10 per cent of the amount received in respect of Class A shares issued within the immediately preceding eight years and within the period commencing March 2, 2010 and ending March 1, 2011; and

  (d)  5 per cent of the amount received in respect of Class A shares issued within the immediately preceding eight years and within the period commencing March 2, 2011 and ending February 29, 2012.

   6.  Subsection 27.1 (4) of the Act is amended by adding the following paragraph:

  11.  The purchaser and vendor are jointly and severally liable to the Minister,

            i.  for any amount payable but not paid under this Act by the vendor before the purchase of the assets by the purchaser, and

           ii.  for any amount that becomes payable under this Act by the vendor after the purchase of the assets by the purchaser, if the amount becomes payable as a result of any act or omission of the vendor occurring before the purchase of the assets by the purchaser.

Commencement

   7.  This Schedule comes into force on the day the Ontario Tax Plan for More Jobs and Growth Act, 2009 receives Royal Assent.

Schedule E
Condominium Act, 1998

   1.  Clause (b) of the definition of "eligible security" in subsection 115 (5) of the Condominium Act, 1998 is repealed and the following substituted:

  (b)  is issued by an institution located in Ontario insured by the Canada Deposit Insurance Corporation or the Deposit Insurance Corporation of Ontario, or

Commencement

   2.  This Schedule comes into force on the day the Ontario Tax Plan for More Jobs and Growth Act, 2009 receives Royal Assent.

Schedule F
Co-operative Corporations Act

   1.  Section 74 of the Co-operative Corporations Act is repealed and the following substituted:

Place of meetings

   74.  (1)  Unless the by-laws of a co-operative require that meetings of the members be held at a particular Ontario location, the meetings of the members of the co-operative are to be held at such place in Ontario as the board of directors stipulates.

Same

   (2)  If the articles of a co-operative so provide, the meetings of the members of the co-operative may be held at one or more places outside Ontario specified in the articles.

Meeting by electronic means

   (3)  If the by-laws of a co-operative, other than a non-profit housing co-operative, so provide, a meeting of the members of the co-operative may be held by telephonic or electronic means and a member who, through those means, votes at the meeting or establishes a communications link to the meeting is deemed for the purposes of this Act to be present at the meeting.

Same

   (4)  A meeting held under subsection (3) is deemed to be held at the place where the head office of the co-operative is located.

Definition of "telephonic or electronic means"

   (5)  For the purposes of this section and section 76,

"telephonic or electronic means" means telephone calls or messages, facsimile messages, electronic mail, transmission of data or information through automated touch-tone telephone systems, transmission of data or information through computer networks, any other similar means or any other prescribed means.

   2.  (1)  Clause 75 (1) (b) of the Act is repealed and the following substituted:

  (b)  all questions proposed for the consideration of the members at a meeting of members are to be determined by the majority of the votes cast, and the chair presiding at the meeting, other than a chair chosen under clause (d.1), has a second or casting vote in case of an equality of votes;

   (2)  Subsection 75 (1) of the Act is amended by adding the following clause:

(d.1) the president, if present at the meeting of members, may choose a non-member instead of himself or herself to be the chair presiding at the meeting;

   3.  (1)  Subsection 76 (3) of the Act is amended by striking out "under its corporate seal".

   (2)  Section 76 of the Act is amended by adding the following subsections:

Voting by electronic means

   (4)  Subject to subsection (5), the members of a co-operative shall vote in person.

Exception

   (5)  The by-laws of a co-operative, other than a non-profit housing co-operative, may provide for voting by mail or by telephonic or electronic means.

   4.  (1)  Section 87 of the Act is amended by adding at the beginning "Subject to subsection (2)".

   (2)  Section 87 of the Act is amended by adding the following subsections:

Exception

   (2)  Subject to subsection (3), the by-laws of a co-operative, other than a non-profit housing co-operative, may provide for the appointment or election of directors who are non-members or who are not directors, officers, shareholders or members of a corporate member.

Same

   (3)  The number of directors appointed or elected who are non-members or who are not directors, officers, shareholders or members of a corporate member must not exceed one-fifth of the total number of directors.

   5.  Section 91 of the Act is amended by adding the following subsection:

Directors may be acclaimed

   (2)  Despite subsection (1) and subject to the by-laws, if the number of candidates for election as directors of a co-operative at a general meeting is the same or fewer than the number to be elected at that meeting, the chair may declare the candidates to have been elected by acclamation.

   6.  Section 93 of the Act is amended by adding the following subsection:

Counting

   (2)  Directors who are non-members or who are not directors, officers, shareholders or members of a corporate member are not to be counted for the purpose of constituting a quorum.

   7.  Section 93.1 of the Act is repealed.

   8.  Section 97 of the Act is amended by adding the following subsections:

Proportion of non-members

   (1.1)  The proportion of directors on the executive committee who are non-members or who are not directors, officers, shareholders or members of a corporate member must not be greater than the proportion of directors who are members or who are directors, officers, shareholders or members of a corporate member.

.     .     .     .     .

Counting

   (4)  Directors on the executive committee who are non-members or who are not directors, officers, shareholders or members of a corporate member must not be counted for the purpose of constituting a quorum.

Commencement

   9.  This Schedule comes into force on the day the Ontario Tax Plan for More Jobs and Growth Act, 2009 receives Royal Assent.

Schedule G
Corporations Tax act

   1.  (1)  The definition of "film studio" in subsection 43.5 (19) of the Corporations Tax Act is repealed and the following substituted:

"film studio" means,

  (a)  a building in which sets are used for the purpose of making film or television productions and sound, light and human access are controlled, or

  (b)  a building in which activities are carried out directly in support of animation if the production is an animated production or contains animated segments; ("studio")

   (2)  The definition of "regional Ontario production" in subsection 43.5 (19) of the Act is amended by striking out "or" at the end of clause (a), by adding "or" at the end of clause (b) and by adding the following clause:

   (c)  for which the principal photography in Ontario consists entirely of animation, but only if no more than 15 per cent of the principal photography in Ontario is done in the Greater Toronto Area; ("production régionale ontarienne")

Commencement

   2.  This Schedule is deemed to have come into force on May 3, 2003.

Schedule H
Credit Unions and Caisses Populaires Act, 1994

   1.  Clause 39 (1) (d) of the Credit Unions and Caisses Populaires Act, 1994 is repealed and the following substituted:

  (d)  the deposits are required or governed by an Act of the Legislature or the Parliament of Canada or by a regulation made under such an Act.

   2.  Section 182 of the Act is amended by adding the following subsection:

Annual payments

   (1.1)  Payments required under subsection (1) shall be made to the Minister in accordance with the Minister's directions, with the first payment under that subsection to be made on the day specified by the Minister and to include all amounts payable to the Minister on or before that day.

Commencement

   3.  This Schedule comes into force on the day the Ontario Tax Plan for More Jobs and Growth Act, 2009 receives Royal Assent.

Schedule I
Education Act

   1.  Clause 90 (1) (b) of the Education Act is amended by striking out "receipts and expenditures of all school money" and substituting "revenues and expenses of the school board".

   2.  Clause 171.1 (4) (b) of the Act is amended by striking out "clause 241 (1) (a)" at the end and substituting "subsection 241 (1)".

   3.  Subsection 230.12 (5) of the Act is amended by striking out "clause (3) (a)" at the end and substituting "subsection (3)".

   4.  The heading "Estimates" immediately before section 230.20 and sections 230.20, 231, 232 and 233 of the Act are repealed and the following substituted:

Interpretation

Definitions

   230.20  (1)  In this Part,

"accumulated deficit" means the amount, if any, by which the total of a board's current and prior in-year deficits exceeds the total of its current and prior in-year surpluses; ("déficit accumulé")

"accumulated surplus" means the amount, if any, by which the total of a board's current and prior in-year surpluses exceeds the total of its current and prior in-year deficits; ("excédent accumulé")

"deferred revenue" means, in respect of a board, the total of,

  (a)  all amounts that the board is required to restrict under subsection 233 (3), and

  (b)  all amounts that are subject to restrictions on the school purposes for which they may be used by the board, where the restrictions may be legally enforced against the board by another body or entity; ("recettes reportées")

"in-year deficit" means the amount, if any, by which a board's expenses in a fiscal year exceed its revenues in that fiscal year; ("déficit d'exercice")

"in-year surplus" means the amount, if any, by which a board's revenues in a fiscal year exceed its expenses in that fiscal year; ("excédent d'exercice")

"operating revenue" has the meaning prescribed by the regulations. ("recettes de fonctionnement")

Regulations

   (2)  The Lieutenant Governor in Council may make regulations,

  (a)  prescribing the meaning of "operating revenue";

  (b)  prescribing revenues, expenses or other matters to be included or excluded in the determination of a board's accumulated deficit, accumulated surplus, in-year deficit or in-year surplus, and providing that the regulation applies only in respect of specified provisions of this Act.

Fiscal year

   (3)  The fiscal year of a board is the year from September 1 to August 31.

In-Year Deficits

Regulations re accounting standards

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

  (a)  prescribing accounting standards with which boards must comply in preparing their financial statements;

  (b)  phasing in or authorizing boards to phase in any changes to accounting standards to their budgets over a period of years, and governing the phase-in.

Same

   (2)  A regulation made under subsection (1) may,

  (a)  incorporate a document or publication as it may be amended from time to time; and

  (b)  apply in respect of the fiscal year in which the regulation is made, even if the regulation is made after the start of the fiscal year.

No in-year deficit

   231.  (1)  A board shall not, without the Minister's approval, have an in-year deficit for a fiscal year that is greater than the amount determined as follows:

    1.  Take the board's accumulated surplus for the preceding fiscal year.  If the board does not have an accumulated surplus, the number determined under this paragraph is deemed to be zero.

    2.  Take 1 per cent of the board's operating revenue for the fiscal year.

    3.  Take the lesser of the amounts determined under paragraphs 1 and 2.

Exception

   (2)  Despite subsection (1), a board may have an in-year deficit that is greater than the amount determined under that subsection if the in-year deficit is permitted as part of a financial recovery plan under Division C.1 or if the board is subject to an order under subsection 230.3 (2) or 257.31 (2) or (3).

Minister's approval

   (3)  In deciding whether to grant his or her approval for a fiscal year for the purpose of subsection (1), the Minister shall consider,

  (a)  whether the in-year deficit is structural or will occur only one time;

  (b)  where the amount determined under paragraph 2 of subsection (1) is less than the amount determined under paragraph 1 of that subsection, whether the in-year deficit is less than 50 per cent of the amount determined under paragraph 1 of that subsection; and

   (c)  the extent to which the in-year deficit is the result of circumstances beyond the board's control.

Estimates

Board shall adopt estimates

   232.  (1)  Every board, before the beginning of each fiscal year and in time to comply with the date set under clause (6) (c), shall prepare and adopt estimates of its revenues and expenses for the fiscal year.

Same

   (2)  Where final financial statements are not available, the calculation of any amount for the purposes of this Act or the regulations shall be based on the most recent data available.

Balanced budget

   (3)  A board shall not adopt estimates that indicate the board would have an in-year deficit for the fiscal year.

Exception

   (4)  Despite subsection (3), a board may adopt estimates for a fiscal year that indicate the board would have an in-year deficit for the fiscal year if,

  (a)  the estimated in-year deficit would be equal to or less than the amount determined under subsection 231 (1);

  (b)  the Minister grants his or her approval for the estimated in-year deficit to be greater than the amount determined under subsection 231 (1) by the amount specified by the Minister;

   (c)  an in-year deficit is permitted as part of a financial recovery plan under Division C.1; or

  (d)  the board is subject to an order under subsection 230.3 (2) or 257.31 (2) or (3).

Minister's approval

   (5)  In deciding whether to grant his or her approval for a fiscal year for the purpose of clause (4) (b), the Minister shall consider the factors set out in subsection 231 (3).

Minister's powers

   (6)  The Minister may,

  (a)  issue guidelines respecting the form and content of estimates required under this section;

  (b)  require boards to comply with the guidelines; and

   (c)  require boards to submit a copy of the estimates to the Ministry, by a date specified for the purpose by the Minister. 

Same

   (7)  Part III (Regulations) of the Legislation Act, 2006 does not apply to anything done by the Minister under subsection (6).

Restrictions

   233.  (1)  A board may by resolution restrict the use of all or part of its accumulated surplus for any purpose for which it has authority to incur expenses.

Same

   (2)  Amounts restricted for a purpose under subsection (1) shall not be expended, pledged or applied to any other purpose unless the board by resolution provides for the expenditure, pledge or application.

Regulations re restrictions

   (3)  The Minister may make regulations requiring a board to restrict, in the manner and to the extent specified in the regulations, the use of any revenue for the purposes specified in the regulations.

Exemption

   (4)  Amounts restricted for a purpose under a provision of a regulation made under subsection (3) shall not be expended, pledged or applied to any other purpose unless the Minister, in writing and subject to such conditions as may be specified, exempts the board from the provision and provides that the board may use the revenue for a specified purpose.

Money to be paid into bank account

   (5)  A board may consolidate deferred revenue and any accumulated surplus restricted under subsection (1) or (3) if the consolidated account is kept in such a way that the purposes for which the amounts are restricted remain distinct and the true state of the amount attributable to each purpose can be determined.

Interest

   (6)  Interest or other earnings on a portion of deferred revenue restricted for a purpose shall be credited only to that portion.

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

Restrictions following strike, lock-out

   233.1  The Minister, subject to the approval of the Lieutenant Governor in Council, may make regulations providing for the calculation of expenses of a board that are not incurred in a fiscal year by reason of a strike or lock-out affecting the operations of the board.

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

Transition

   233.2  (1)  All amounts held or required to be held in reserve funds by section 232 or 233 of this Act, as it read immediately before the day section 4 of Schedule I to the Ontario Tax Plan for More Jobs and Growth Act, 2009 came into force, are deemed to be amounts restricted under subsection 233 (3) for the same purposes for which the amounts were held in reserve funds.

Same

   (2)  All amounts held in education development charge reserve funds authorized or continued under this Act, as it read immediately before the day section 4 of Schedule I to the Ontario Tax Plan for More Jobs and Growth Act, 2009 came into force, are deemed to be amounts restricted under subsection 233 (3) for the same purposes for which the amounts were held in reserve funds.

Same

   (3)  All amounts held in reserve funds of boards authorized or continued under this Act, as it read immediately before the day the section 4 of Schedule I to the Ontario Tax Plan for More Jobs and Growth Act, 2009 came into force, other than amounts held in a reserve fund described in subsection (1) or (2), are deemed to be amounts restricted under subsection 233 (1) for the same purposes for which the amounts were held in reserve funds.

Restrictions

   (4)  Any restrictions that, immediately before the day section 4 of Schedule I to the Ontario Tax Plan for More Jobs and Growth Act, 2009 came into force, applied to amounts held in reserve funds described in subsection (1), (2) or (3) continue to apply to the amounts on and after that day.

   7.  (1)  Subsections 234 (1.1) and (1.2) of the Act are repealed and the following substituted:

Same

   (1.1)  A regulation made under subsection (1) may set out rules respecting the number of instalments in which payments of legislative grants shall be paid to boards, the dates on which the payments shall be made and the amounts of the payments as a percentage of the total amount payable to the boards.

   (2)  Clause 234 (4) (c) of the Act is repealed and the following substituted:

   (c)  authorize the Minister to,

           (i)  withhold all or part of a legislative grant or delay payment of an instalment of a legislative grant if a condition of the legislative grant is not satisfied, or

          (ii)  require that all or part of a legislative grant be repaid if a condition of the grant is not satisfied.

   (3)  Subsection 234 (8) of the Act is repealed and the following substituted:

Payment schedule

   (8)  The Minister may, in accordance with any rules referred to in subsection (1.1), prescribe the number of instalments in which payments of legislative grants shall be paid to boards, the dates on which the payments shall be made and the amounts of the payments as a percentage of the total amount estimated by the Minister to be payable to the boards.

   8.  Subsection 240 (2) of the Act is amended by striking out "clause 241 (1) (a)" and substituting "subsection 241 (1)".

   9.  (1)  Subsections 241 (1), (2), (3), (4) and (5) of the Act are repealed and the following substituted:

Investment powers

   (1)  A board may, subject to any rules prescribed under subsection (6), invest in securities prescribed under subsection (6) any money of the board that is not immediately required by the board.

   (2)  Clause 241 (6) (a) of the Act is amended by striking out "clause (1) (a)" at the end and substituting "subsection (1)".

   (3)  Clause 241 (6) (b) of the Act is amended by striking out "clause (1) (a)" at the end and substituting "subsection (1)".

   10.  (1)  Subsection 243 (2) of the Act is amended by striking out "the current revenue" and substituting "cash".

   (2)  Subsection 243 (3) of the Act is amended by striking out "estimated revenues of the board, as set out in the estimates adopted for the fiscal year" at the end and substituting "estimated current revenues of the board".

   (3)  Subsections 243 (5) and (6) of the Act are repealed and the following substituted:

Exception re certain boards

   (5)  A board may borrow more than the amount authorized to be borrowed under the other provisions of this section if, at the time of the borrowing,

  (a)  the board is subject to a financial recovery plan approved by the Minister under subsection 257.29.1 (2), and the plan permits the borrowing; or

  (b)  the administration of the affairs of the board has been vested in the Ministry by an order under subsection 230.3 (2) or 257.31 (2) or (3), and the Minister approves the borrowing.

   11.  Part IX of the Act is amended by adding the following Division:

DIVISION C.1
FINANCIAL RECOVERY PLANS

Financial recovery plan

   257.29.1  (1)  The Minister may order a board to adopt by resolution a financial recovery plan and submit it to the Minister within the time the Minister specifies if,

  (a)  the board's financial statements for a fiscal year show that the board had an in-year deficit contrary to section 231 or an accumulated deficit; or

  (b)  the Minister has reasonable grounds to believe that the board's financial statements for a fiscal year will show that the board had an in-year deficit contrary to section 231 or an accumulated deficit.

Minister's approval

   (2)  The Minister may, with respect to a financial recovery plan submitted to him or her under subsection (1),

  (a)  approve the plan, subject to such amendments as the Minister determines are necessary;

  (b)  reject the plan and require the board to submit a new plan addressing such matters as the Minister specifies; or

   (c)  reject the plan and do anything else he or she is authorized to do under Division D or Part VIII.

Compliance with financial recovery plan

   (3)  The board shall comply with the provisions of a financial recovery plan approved under subsection (2) until the board's financial statements for a fiscal year show that in that year it had neither an accumulated deficit nor an in-year deficit.

New financial recovery plans

   (4)  Even after a financial recovery plan has been approved under subsection (2), the Minister may require the board to submit another such plan if,

  (a)  the Minister determines that the board has not complied with the provisions of the financial recovery plan that was approved or with a regulation respecting financial recovery plans; or

  (b)  the Minister is of the opinion that a new financial recovery plan is required due to circumstances arising since the financial recovery plan was approved.

Regulations

   (5)  The Minister may make regulations governing financial recovery plans, including regulations governing the duration of plans and setting out goals or targets that the board must meet while subject to a financial recovery plan.

   12.  (1)  Subsection 257.30 (1) of the Act is amended by adding the following clauses:

(a.1) the board was required under subsection 257.29.1 (1), (2) or (4) to submit a financial recovery plan to the Minister within the time specified by the Minister and the board failed to do so;

(a.2) the board was required under subsection 257.29.1 (3) to comply with a financial recovery plan and the board failed to do so;

(a.3) the board was required to comply with a regulation made under subsection 257.29.1 (5) and the board failed to do so;

   (2)  Section 257.30 of the Act is amended by adding the following subsection:

Same

   (1.1)  The Minister may direct an investigation under subsection (1) whether or not he or she has ordered the board to submit a financial recovery plan under section 257.29.1 or considered any such plan that has been submitted.

   13.  (1)  Clause 257.34 (2) (g) of the Act is repealed and the following substituted:

  (g)  the creation and setting aside of sinking funds, retirement funds and funds prescribed under clause 247 (3) (e) and the restriction of money out of any portion of the revenues of the board for meeting obligations relating to all or any part of the board's indebtedness;

   (2)  Clause 257.34 (2) (h) of the Act is amended by striking out "funds prescribed under clause 247 (3) (e) reserves" and substituting "funds prescribed under clause 247 (3) (e), deferred revenues".

   14.  Subsection 257.45 (5) of the Act is amended by striking out "clause (3) (a)" at the end and substituting "subsection (3)".

   15.  (1)  Subsection 257.51 (1) of the Act is amended by adding "or Division C.1" at the end.

   (2)  Subsection 257.51 (2) of the Act is amended by adding "or Division C.1" at the end.

   16.  (1)  Subsection 257.52 (1) of the Act is amended by adding "or Division C.1" after "this Division" in the portion before clause (a).

   (2)  Subsection 257.52 (2) of the Act is amended by adding "and Division C.1" after "this Division" in the portion before clause (a).

   17.  (1)  Subsection 257.53 (1) of the Act is amended by adding the following definition:

"education development charge account" means an account established under subsection 257.82 (1); ("compte de redevances d'aménagement scolaires")

   (2)  The definition of "education development charge reserve fund" in subsection 257.53 (1) of the Act is repealed.

   18.  Subsection 257.82 (1) of the Act is amended by striking out "reserve funds" and substituting "education development charge accounts".

   19.  (1)  Subsection 257.98 (1) of the Act is amended by striking out "reserve funds" and substituting "accounts".

   (2)  Subsection 257.98 (2) of the Act is amended by striking out "reserve funds" wherever it appears and substituting in each case "accounts".

   20.  Clause 257.101 (1) (k) of the Act is repealed and the following substituted:

   (k)  governing education development charge accounts, including,

           (i)  governing the establishment and administration of such accounts,

          (ii)  the use of money from such accounts,

         (iii)  requiring the approval of the Minister in respect of the manner in which or the rate at which the money is withdrawn from such accounts;

   21.  The Act is amended by striking out "reserve fund" wherever it appears in the following provisions and substituting in each case "account":

    1.  Subsection 257.69 (4).

    2.  Subsection 257.82 (2).

    3.  Subsection 257.90 (3).

    4.  Section 257.99.

Amendment to the Municipal Act, 2001

   22.  Subsection 417 (1) of the Municipal Act, 2001 is amended by striking out "as defined in the Municipal Affairs Act" and substituting "conservation authority".

Commencement

   23.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Ontario Tax Plan for More Jobs and Growth Act, 2009 receives Royal Assent.

Same

   (2)  Sections 1, 2, 4, 6 to 13 and 15 to 22 come into force on September 1, 2010.

Schedule J
Financial Administration Act

   1.  Section 1 of the Financial Administration Act is amended by adding the following subsection:

Interpretation, appropriation for a fiscal year

   (2)  A reference in this Act to an appropriation for or relating to a fiscal year is a reference to an appropriation that authorizes an expenditure for only that fiscal year.

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

Part 0.1
Treasury Board and Ministry of Finance

Treasury Board

Treasury Board continued

   1.0.1  The committee of the Executive Council known in English as the Treasury Board and in French as Conseil du Trésor is continued.

Members

   1.0.2  (1)  The members of the Board are the Minister of Finance, the Chair of the Management Board of Cabinet and not fewer than four or more than eight other members appointed by the Lieutenant Governor in Council from among the members of the Executive Council.

Alternative members

   (2)  The Lieutenant Governor in Council may appoint from among the members of the Executive Council alternative members of the Board to act in the absence of Board members other than the Minister of Finance or the Chair of the Management Board of Cabinet.

Quorum

   (3)  Three members constitute a quorum of the Board.

Chair and vice-chair

   1.0.3  (1)  The Lieutenant Governor in Council may designate the chair and vice-chair of the Board.

Chair's duties

   (2)  The chair shall preside at Board meetings, is responsible for its operation and administration and, between its meetings, shall exercise or perform such of its powers, duties and functions as the Board may authorize.

Absence of chair or vice-chair

   (3)  When the chair is absent from a meeting of the Board, the vice-chair shall preside, and when both are absent, the members present at the meeting shall elect a chair for the meeting.

Procedure

   1.0.4  (1)  The Board may determine its rules and methods of procedure and shall keep records of its decisions and proceedings.

Secretary of the Board

   (2)  Subject to the direction of the chair of the Board, the Deputy Minister of Finance or such other person referred to in paragraph 1 or 3 of subsection 2 (2) of the Public Service of Ontario Act, 2006 as is designated by order of the Lieutenant Governor in Council shall hold the office of Secretary of the Board and is responsible for the operation of the Board in accordance with its policies and procedures.

Same

   (3)  If there is no Secretary of the Board or if the Secretary is absent or unable to act, the Secretary of the Management Board of Cabinet has the powers and shall perform the duties of the Secretary of the Board.

Board staff

   (4)  The Treasury Board Office of the Ministry of Finance shall provide the staff required for the operation and administration of the Board.

Delegation

   (5)  The Board may delegate to any member of the Executive Council or to any public servant employed under Part III of the Public Service of Ontario Act, 2006 any power, duty or function of the Board, subject to such limitations and requirements as the Board may specify.

Powers and duties

   1.0.5  (1)  The powers and duties of the Board are,

  (a)  to assess the adequacy of plans for the implementation of programs approved or provided for by the Legislature;

  (b)  to direct the preparation and review of forecasts, estimates and analyses of short term and long term expenditures and expenditure commitments and other data pertaining to authorized or proposed programs of any ministry;

   (c)  to direct, and establish policies for, the preparation, form and content of estimates and supplementary estimates submitted to the Legislature for any ministry;

  (d)  to determine fees or charges for the provision of services by any ministry or for the use of the facilities of a ministry and to require the ministry to take such action as is necessary to implement the determination;

  (e)  to review, evaluate and approve new and existing programs of any ministry and determine priorities with respect to them;

    (f)  to control expenditures of public money within the amounts appropriated or otherwise provided by the Legislature; and

  (g)  to carry out or perform any directions or responsibilities given to the Board by the Executive Council.

Direction by Executive Council

   (2)  The Board is subject to the direction of the Executive Council, which may amend or revoke any action of the Board.

Directives

   (3)  The Board may issue such directives as it considers necessary in the performance of its duties.

Transitional

   (4)  Each directive issued under the Treasury Board Act, 1991 in effect on the day this section comes into force is deemed to have been made under the authority of subsection (3).

Access to ministry information, etc.

   (5)  A ministry shall give the Board access to, and copies of, any account, return, statement, document, report or information in the possession or control of the ministry when the Board requires the account, statement, document, report or information for the performance of its duties.

Board may require right to consent to fees, etc.

   1.0.6  (1)  The Board may require a minister of the Crown to obtain the consent of the Board before the minister exercises his or her discretion to,

  (a)  establish, set, charge, require the payment of, collect or otherwise impose a new fee;

  (b)  make a regulation prescribing the amount of a fee, make an order setting out the amount of a fee or otherwise determine the amount of a fee;

   (c)  waive the payment of a fee or refund a fee that is otherwise required to be paid;

  (d)  change the amount of a fee; or

  (e)  approve or authorize the exercise of discretion by another person or entity to do anything described in clause (a), (b), (c) or (d) with respect to a fee payable into the Consolidated Revenue Fund.

Definition

   (2)  In this section,

"fee" means a fee or other charge the amount of which,

  (a)  is not specified in an Act or in a regulation made by the Lieutenant Governor in Council, and

  (b)  is not determined using a formula or method set out in an Act or in a regulation made by the Lieutenant Governor in Council.

Special warrants

   1.0.7  (1)  If the Legislature is not in session and a matter arises that requires an expenditure that has not been authorized by an appropriation or that exceeds the amount authorized by an appropriation, the Lieutenant Governor in Council, on receiving the report of the Board estimating the amount of the expenditure or additional expenditure, may order a special warrant to be prepared and signed by the Lieutenant Governor authorizing an expenditure in the amount estimated to be required, and the expenditure may be paid or recognized as specified in the special warrant.

Where appropriation exists

   (2)  Subject to subsection (4), if a special warrant is issued with respect to an expenditure that is in addition to an expenditure that has been authorized by an appropriation, the amount of the additional expenditure authorized by the special warrant shall be added to and deemed to be part of the expenditure authorized by the appropriation for the fiscal year in which the special warrant is issued.

Where no appropriation exists

   (3)  Subject to subsection (4), if a special warrant is issued with respect to an expenditure and no expenditure in respect of the same item has been authorized by an appropriation, the expenditure authorized by the special warrant is deemed to be an expenditure authorized by an appropriation for the fiscal year in which the special warrant is issued.

Warrant may apply to next fiscal year

   (4)  A special warrant issued in a fiscal year may provide that it applies with respect to the next fiscal year, in which case the expenditure to which it relates is deemed to be an expenditure authorized by an appropriation for that next fiscal year.

Board orders, supplementary expenditures

   1.0.8  (1)  Despite section 11.2, the Board may by order authorize supplementary expenditures in addition to the expenditures authorized by an appropriation for a fiscal year if the amount of the expenditures authorized by the appropriation is insufficient to carry out the intended purpose for which they were authorized.

Report required

   (2)  An order may be made under subsection (1) only if the Board has received from the ministry responsible for the program to which the proposed supplementary expenditures relate, or from a person prescribed by the regulations made under this Act, a report in writing setting out the need for further expenditures and the reason why the amount that was authorized by the appropriation is insufficient without the supplementary expenditures.

Board orders in favour of contingency fund

   (3)  Despite section 11.2, the Board may by order authorize supplementary expenditures for a reserve for future contingencies authorized by an appropriation, if the Board considers it advisable to do so.

Expenditures to be offset by reduction on other appropriation

   (4)  An order under subsection (1) or (3) shall provide that the supplementary expenditures be offset by reducing the amount of other expenditures authorized by an appropriation for the same fiscal year if not all of those authorized expenditures have been paid or recognized and, in the opinion of the Board, are unlikely to be paid or recognized for the fiscal year.

Timing

   (5)  An order under subsection (1) or (3) may be made at any time before the books of the Government of Ontario for the fiscal year are closed.

Post fiscal year-end Board orders to be reported in the Public Accounts

   (6)  If the Board issues an order under this section at any time after the end of a fiscal year to authorize a supplementary expenditure for that fiscal year because the amount authorized by an appropriation is no longer sufficient due to an adjustment being made that arose out of the audit of the Public Accounts for that fiscal year, the ministry responsible for the program in respect of which the supplementary expenditure is authorized shall prepare a statement setting out the circumstances that gave rise to the need for the order, and the statement shall be included in the Public Accounts for that fiscal year.

Exception

   (7)  An amount authorized under any Act to be expended for payments under the Investing in Ontario Act, 2008 may not be reduced as an offset under subsection (4).

Expenditure transfer

   1.0.9  (1)  When powers and duties are assigned and transferred from one minister of the Crown to another, the Board may transfer to the ministry administered by the minister to whom the powers and duties are assigned and transferred the appropriate sums in the votes and items of the estimates and supplementary estimates for the expenditures in the fiscal year for the exercise and performance of those powers and duties.

Certificate of Board

   (2)  The Board shall issue to the ministry of the minister to whom powers and duties are assigned and transferred a certificate stating the amount of the sums transferred under subsection (1) and such other information as the Board considers necessary.

Expenditures authorized

   (3)  A certificate is effective from the date stated in it and transfers to the ministry to which it is issued the authority for the portion of the fiscal year beginning with that date to make the expenditure of the sums transferred.

Regulations

   1.0.10  Subject to the approval of the Lieutenant Governor in Council, the Board may make regulations,

  (a)  respecting the accounting for, and the collection, management and administration of public money;

  (b)  respecting the retention and disposal of records concerning the receipt or disbursement of public money;

   (c)  providing that a board, commission, authority, corporation or any other agency of the Government of Ontario does not fall within the definition of "ministry" set out in section 1;

  (d)  designating the Speaker of the Assembly, the chair of the Board of Internal Economy established under the Legislative Assembly Act or any member of the Executive Council to represent, for the purposes of sections 1.0.7 and 1.0.8, any office or body reporting directly to the Assembly.

Ministry of Finance

Ministry of Finance continued

   1.0.11  The Ministry known in English as the Ministry of Finance and in French as ministère des Finances is continued.

Minister of Finance to have charge

   1.0.12  The Minister of Finance shall preside over and have charge of the Ministry of Finance and has power to act for and on behalf of the Ministry of Finance.

Seal

   1.0.13  (1)  The Lieutenant Governor in Council may authorize a seal for the Minister of Finance and prescribe its use on documents.

Mechanical reproduction of seal

   (2)  The seal may be reproduced by engraving, lithographing, printing or any other method of mechanical reproduction, and when so reproduced has the same force and effect as if manually affixed.

Duties and powers of Minister of Finance

   1.0.14  (1)  The Minister of Finance shall direct and control the Ministry of Finance, recommend to the Executive Council finance, economic, accounting and taxation policy, supervise, direct and control all finance, economic, statistical and accounting functions, manage the Consolidated Revenue Fund and, except as otherwise provided in any other Act, manage all public money.

Administration of Acts

   (2)  The Minister of Finance is responsible for the administration of this Act and the Acts that are assigned to him or her by the Legislature or by the Lieutenant Governor in Council under the Executive Council Act.

Directives, policies and guidelines

   (3)  The Minister of Finance may issue such directives, policies and guidelines as he or she considers necessary in the performance of his or her duties or in the exercise of his or her powers under this or any other Act.

Transitional

   (4)  Each directive and guideline issued under the Ministry of Treasury and Economics Act in effect on the day this section comes into force is deemed to have been made under the authority of subsection (3).

References to Treasurer of Ontario, etc.

   (5)  A reference to the Treasurer of Ontario or to the Treasurer of Ontario and Minister of Economics in any Act or regulation is deemed to be a reference to the Minister of Finance, and a reference to the Ministry of Trea­sury and Economics in any Act or regulation is deemed to be a reference to the Ministry of Finance.

Deputy Minister of Finance

   1.0.15  The Lieutenant Governor in Council shall appoint a Deputy Minister of Finance who shall be the deputy head of the Ministry of Finance.

Delegation of powers

   1.0.16  (1)  Any power or duty conferred or imposed on the Minister of Finance under this or any other Act may be delegated by the Minister of Finance to the Deputy Minister of Finance or to a public servant employed under Part III of the Public Service of Ontario Act, 2006 who works in or provides services to the Ministry of Finance and, when purporting to exercise a delegated power or duty, the delegate shall be presumed conclusively to act in accordance with the delegation.

Exception

   (2)  The Minister of Finance may not delegate his or her powers under subsection 5.1 (3) or his or her authority to make regulations under any Act.

Delegation subject to conditions

   (3)  A delegation under subsection (1) shall be in writing and may be subject to such limitations, conditions and requirements as are set out in it.

Subdelegation

   (4)  In a delegation under subsection (1), the Minister of Finance may authorize a person to whom a power or duty is delegated to delegate to others the exercise of the delegated power or duty, subject to such limitations, conditions and requirements as the person may impose.

Deeds and contracts

   (5)  Despite section 6 of the Executive Council Act, a deed or contract signed by a person empowered to do so under a delegation or subdelegation made under this section has the same effect as if signed by the Minister of Finance.

Facsimile signature

   (6)  The Minister of Finance or the Deputy Minister of Finance may authorize the use of a facsimile of his or her signature on any document except an affidavit or statutory declaration, and the facsimile signature is deemed to be the signature of the Minister or Deputy Minister, as the case may be.

Transitional

   (7)  Every delegation made under subsection 64 (1) of the Capital Investment Plan Act, 1993 in effect on the day this section comes into force is deemed to have been made under the authority of this section.

Protection from personal liability

   1.0.17  (1)  No action or other proceeding for damages shall be commenced against the Deputy Minister of Finance or any public servant employed under Part III of the Public Service of Ontario Act, 2006 who works in the Ministry of Finance for any act done in good faith in the performance or intended performance of his or her duty or for any alleged neglect or default in good faith in the performance of his or her duty.

Same, delegates

   (2)  No action or other proceeding for damages shall be commenced against any public servant employed under Part III of the Public Service of Ontario Act, 2006 who provides services to the Ministry of Finance for any act done in good faith in the performance or intended performance of his or her duty under a delegation or subdelegation of a power or duty of the Minister of Finance or for any alleged neglect or default in good faith in the performance of his or her duty.

Crown liability

   (3)  Despite subsections 5 (2) and (4) of the Proceedings Against the Crown Act, subsections (1) and (2) do not relieve the Crown of any liability to which it would otherwise be subject in respect of a tort committed by the Deputy Minister of Finance or a public servant employed under Part III of the Public Service of Ontario Act, 2006 who works in or provides services to the Ministry of Finance.

Expenditures

   1.0.18  Except as otherwise provided in this or another Act, the expenditures of the Ministry of Finance shall be paid out of money appropriated for that purpose by the Legislature.

Grants

   1.0.19  (1)  The Minister of Finance may make a grant to an organization, agency or other entity for the purpose of improving the process of managing the flow of goods and services, information and funds within the broader public sector.

Same

   (2)  For the purposes of this section, the broader public sector consists of,

  (a)  every district school board as defined in subsection 1 (1) of the Education Act;

  (b)  every person or entity that is a health service provider for the purposes of the Local Health System Integration Act, 2006;

   (c)  every college of applied arts and technology established under the Ontario Colleges of Applied Arts and Technology Act, 2002;

  (d)  every university in Ontario, including its affiliated and federated colleges, that receives operating grants from the Government of Ontario;

  (e)  every municipality as defined in section 1 of the Municipal Act, 2001; and

    (f)  every children's aid society that is designated in accordance with the Child and Family Services Act.

Financial Management

Financial responsibility

   1.0.20  The deputy minister of each ministry of the Government of Ontario and the chief executive officer of, or person holding a similar position with respect to, each board, commission, authority, corporation and agency of the Government of Ontario is responsible for ensuring the proper conduct of the financial business of the relevant ministry, board, commission, authority, corporation and agency in accordance with such directives, policies and guidelines as are made or issued under this Act.

Payment may be withheld

   1.0.21  (1)  The Minister of Finance may withhold a payment out of the Consolidated Revenue Fund if he or she has reason to believe that there is no authority for the payment.

Reference to Treasury Board

   (2)  If a payment is withheld under subsection (1), the Minister of Finance or the minister who requisitioned the payment that has been withheld may refer the matter to Treasury Board for determination.

Payment for special cases

   1.0.22  (1)  The certificate or order of the Attorney General or Deputy Attorney General that a sum of money is required to be paid out of the Consolidated Revenue Fund on account of the investigation, detection or punishment of any offence against the laws of Ontario or of Canada, or on account of special services or disbursements in connection with inquests, or any purpose connected with the administration of justice in either civil or criminal matters, is sufficient authority for the issuing of a cheque by the Minister of Finance for the amount named in the certificate or order, and the officer or other person to whom the cheque is issued shall account to the Attorney General for the proper disbursement of the amount received by the officer or other person.

Certificate of Attorney General or Deputy Attorney General

   (2)  The certificate of the Attorney General or Deputy Attorney General that any money received by any officer or other person under this section has been duly accounted for is final and conclusive and the account shall not be subject to any further examination.

Estimates

   1.0.23  All estimates of expenditures and supplementary estimates of expenditures submitted to the Legislature shall be for expenditures to be incurred or recognized by the Crown during the fiscal year.

Expenditures authorized by the Assembly

   1.0.24  Despite any provision of this Act, if the Assembly has concurred in one or more reports of the Standing Committee on Estimates recommending the passing of estimates of expenditures and supplementary estimates of expenditures of the ministries and legislative offices that were chosen for review by the Standing Committee on Estimates, the Lieutenant Governor in Council may authorize the incurring of any expenditure in a report for which concurrence is given or is deemed, under the Standing Orders, to be given.

Provision of information to the Minister of Finance

   1.0.25  (1)  The following entities shall provide to the Minister of Finance, whenever requested to do so by the Minister of Finance and on or before the day specified by the Minister, such information regarding their powers, duties, activities, organization, financial transactions and methods of business as the Minister of Finance requires:

    1.  Every ministry of the Government of Ontario.

    2.  Every Crown agency.

    3.  Every other entity whose financial statements are included in the consolidated financial statements set out in the Public Accounts of the Province of Ontario.

    4.  Every other entity the financial obligations of which have been guaranteed by a ministry of the Government of Ontario or a Crown agency.

Same, pension plans sponsored or co-sponsored by Province

   (2)  Every administrator of a pension plan that is sponsored or co-sponsored by the Province of Ontario, including a Crown agency, or by an entity described in paragraph 3 of subsection (1) shall provide to the Minister of Finance, whenever requested to do so by the Minister of Finance and on or before the day specified by the Minister of Finance, such information regarding the pension plan and its assets as the Minister of Finance requires, including, but not limited to,

  (a)  information required to calculate in accordance with generally accepted accounting principles the pension expense and liability set out in the Public Accounts;

  (b)  actuarial valuations of the pension plan on a financial statement basis;

   (c)  asset allocations of the pension fund;

  (d)  summaries of membership data; and

  (e)  the investment policies of the pension plan.

Access

   (3)  Every ministry of the Government of Ontario and every Crown agency shall,

  (a)  provide access to the Minister of Finance at all reasonable times to all books, accounts, financial records, reports, files and other papers, things or property belonging to or in use by the ministry or Crown agency; and

  (b)  afford every facility to the Minister of Finance to verify transactions with the balances or securities held by depositaries, fiscal agents or custodians.

Oath of secrecy

   (4)  Every person who is to examine the accounts or inquire into the affairs of any ministry of the Government of Ontario, Crown agency or entity described in paragraph 3 or 4 of subsection (1) shall be required to comply with any security requirements applicable to, and to take any oath of secrecy required to be taken by, persons employed in that ministry, agency or entity.

Preparation of Public Accounts

   1.0.26  (1)  The Public Accounts for each fiscal year shall be prepared under the direction of the Minister of Finance and shall include,

  (a)  the annual report of the Government of Ontario for the fiscal year;

  (b)  the summary financial statements of the Government of Ontario for the fiscal year;

   (c)  the report of the Auditor General concerning his or her examination of the summary financial statements; and

  (d)  subject to subsection (4), any other information that, under another Act of the Legislature, is required to be included in the Public Accounts.

Expenditures under the Investing in Ontario Act, 2008

   (2)  An expenditure incurred by the Government of Ontario in respect of a fiscal year under the Investing in Ontario Act, 2008 shall be recorded as an expense of the Government of Ontario for that fiscal year in the summary financial statements set out in the Public Accounts for that fiscal year.

Additional information

   (3)  The Public Accounts may include such other information as the Minister of Finance considers necessary.

Information required under other Acts

   (4)  If, under another Act of the Legislature, information is required to be included in the Public Accounts for a fiscal year, that requirement is deemed to be met if the information is included in the financial information supplementary to the Public Accounts that is laid before the Assembly in accordance with subsection (6).

Public Accounts to be submitted and laid before the Assembly

   (5)  Except in extraordinary circumstances, the Minister of Finance shall submit the Public Accounts for each fiscal year to the Lieutenant Governor in Council on or before the 180th day after the end of the fiscal year and the Lieutenant Governor in Council shall,

  (a)  lay the Public Accounts before the Assembly, if the Assembly is in session when the Public Accounts are ready to be laid before the Assembly; or

  (b)  make the Public Accounts public, if the Assembly is not in session when the Public Accounts are ready to be laid before the Assembly, and lay the Public Accounts before the Assembly on or before the 10th day of the next session.

Supplementary financial information

   (6)  Except in extraordinary circumstances, the Minister of Finance may submit to the Lieutenant Governor in Council, on or before the 240th day after the end of a fiscal year, any financial information supplementary to the Public Accounts for the fiscal year, and the Lieutenant Governor in Council shall lay the information before the Assembly if it is in session or on or before the 10th day of the next session if the Assembly is not in session.

Minister of Finance may make adjustments after end of fiscal year

   (7)  Despite any provision of this or another Act of the Legislature, the Minister of Finance may, after the end of a fiscal year, make any adjustments to the Public Accounts for the fiscal year that in his or her opinion are necessary to reflect fairly the financial position of the Government of Ontario.

Disclosure in Public Accounts not breach of any agreement

   (8)  A disclosure of information in the Public Accounts, or in any financial information supplemental to the Public Accounts, that is made in accordance with the accounting policies of the Government of Ontario, as set out in the Public Accounts, is deemed not to contravene the provisions of any agreement made before or after this subsection comes into force that purports to restrict or prohibit the disclosure of information.

Closing books for fiscal year

   (9)  The Minister of Finance may determine when the books of the Government of Ontario for a fiscal year are closed.

   3.  (1)  The French version of subsection 1.1 (1) of the Act is amended by striking out "comptabilisées" and substituting "inscrites".

   (2)  The French version of subsection 1.1 (2) of the Act is amended,

  (a)  by striking out "comptabilisées dans le Fonds" and substituting "inscrites au Fonds"; and

  (b)  by striking out "elles sont comptabilisées" and substituting "elles sont inscrites".

   4.  (1)  This section applies only if Bill 212 (Good Government Act, 2009), introduced on October 27, 2009, receives Royal Assent.

   (2)  References in this section to provisions of Bill 212 are references to those provisions as they were numbered in the first reading version of the Bill.

   (3)  On the later of the day this section comes into force and the day section 1 of Schedule 12 to Bill 212 comes into force, section 2 of the Act is amended by adding the following subsections:

Application of subs. (1.2)

   (1.1)  Subsection (1.2) applies to every corporation,

  (a)  that is constituted by a regulation made under section 5 of the Development Corporations Act on or after the day section 1 of Schedule 12 to the Good Government Act, 2009 comes into force; and

  (b)  that is not a development corporation.

Funding of certain corporations constituted under the Development Corporations Act

   (1.2)  The assets and revenues of a corporation to which this subsection applies, including all proceeds from borrowing but not including any transfer payments from the Crown, shall be paid into the Consolidated Revenue Fund.

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

Remission of amounts owing to or recoverable by the Crown

   5.1  (1)  In this section,

"other debt" means an amount owing to Her Majesty in right of Ontario other than a tax, fee, penalty or recoverable grant; ("autre dette")

"penalty" includes any forfeiture or pecuniary penalty imposed or authorized to be imposed by any Act of the Legislature for any contravention of the laws relating to the collection of revenue or to the management of any public work producing tolls or revenue, even if part of the forfeiture or penalty is payable to another person; ("pénalité")

"recoverable grant" means a grant, an amount in excess of a grant, an increment, an amount in excess of an increment, a monthly benefit, an amount in excess of a monthly benefit, a tax credit and interest that is required to be paid or repaid by the recipient to Her Majesty under any Act; ("allocation recouvrable")

"tax" includes any tax, interest, impost or toll payable to Her Majesty in right of Ontario, imposed or authorized to be imposed by any Act of the Legislature. ("taxes")

Authority to remit

   (2)  Despite any other Act, the Lieutenant Governor in Council, on the recommendation of the Minister of Finance, may remit any tax, fee, penalty, recoverable grant or other debt if the Lieutenant Governor in Council considers it to be in the public interest to do so.

Same

   (3)  Despite any other Act, the Minister of Finance may remit any tax, fee or penalty that is $10,000 or less if the Minister considers it to be in the public interest to do so.

Same

   (4)  A remission under this section may be total or partial, conditional or unconditional, and may be granted,

  (a)  before, after or pending any suit or proceeding for the recovery of the tax, fee, penalty, recoverable grant or other debt in respect of which it is granted;

  (b)  before or after any payment of it has been made or enforced by process or execution; or

   (c)  in any particular case or a class of cases and before the liability to pay it or repay it arises.

Form of remission

   (5)  A remission under this section may be granted,

  (a)  by forbearing to institute a suit or proceeding for the payment of the tax, fee, penalty or other debt, or for the repayment of the recoverable grant, in respect of which the remission is granted;

  (b)  by delaying, staying or discontinuing any suit or proceeding already instituted;

   (c)  by forbearing to enforce any judgment or by staying or abandoning any execution or process upon any judgment;

  (d)  by the entry of satisfaction upon any judgment; or

  (e)  by repaying an amount of money paid to or recovered by the Minister for the tax, fee, penalty, recoverable grant or other debt.

Conditional remission

   (6)  If a remission is granted under this section subject to a condition and the condition is not performed, the tax, fee, penalty, recoverable grant or other debt that is remitted or to be remitted may be collected and all proceedings may be had as if there had been no remission.

Effect of conditional remission

   (7)  A conditional remission, upon performance of the condition, and an unconditional remission have effect as if the remission was made after the tax, fee, penalty, recoverable grant or other debt in respect of which it was granted had been sued for and recovered.

Payments

   (8)  Remissions granted under this or any other Act may be paid out of the Consolidated Revenue Fund.

Report

   (9)  Each remission of $1,000 or more that is granted under this section shall be reported to the Legislature in the Public Accounts.

Remission has effect of pardon

   (10)  If a penalty imposed by any law relating to revenue has been wholly and unconditionally remitted under this section, the remission has the effect of a pardon for the offence for which the penalty was imposed and afterwards the offence has no legal effect prejudicial to the person to whom the remission is granted.

   6.  Section 7 of the Act is amended by adding the following subsections:

Interest may be credited retrospectively

   (3)  An order of the Lieutenant Governor in Council under subsection (2) may authorize the crediting of interest on money to which subsection (1) applies with effect from a date which precedes the date of the relevant order.

Limit on interest

   (4)  Interest paid under subsection (2) on money to which subsection (1) applies shall not exceed the income earned on that money while it is held in the Consolidated Revenue Fund.

Exception to limit

   (5)  Despite subsection (4), interest may be paid under subsection (2) on money that has been received by or on behalf of the Crown for the special purpose of administering a pension fund or supplemental pension fund in an amount that exceeds the income earned on that money while it is held in the Consolidated Revenue Fund.

   7.  The French version of subsection 9 (4) of the Act is amended by striking out "compte de revenus" and substituting "compte de recettes".

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

Deemed expense for purposes of subs. (4)

   (5)  An amount payable under Part IX of the Excise Tax Act (Canada) in respect of which the Crown is entitled to a refund is deemed to be an expense to which subsection (4) applies.

   9.  Subsection 11.2 (2) of the Act is repealed.

   10.  Subsection 11.3 (3) of the Act is repealed.

   11.  Subsection 11.4 (3) of the Act is repealed.

   12.  Subsection 11.5 (3) of the Act is repealed.

   13.  Subsection 11.6 (10) of the Act is repealed.

   14.  Section 11.9 of the Act is repealed.

   15.  Section 14 of the Act is repealed.

   16.  Subsection 14.1 (4) of the Act is repealed.

   17.  The French version of the definition of "ministry" in subsection 15 (1) of the Act is amended by striking out "les produits" and substituting "les re­cettes".

   18.  Section 16 of the Act is repealed.

   19.  Subsection 16.0.1 (3) of the Act is repealed.

   20.  Section 16.2 of the Act is repealed.

   21.  Section 43 of the Act is amended by adding the following subsection:

Application of subs. (2)

   (3)  Subsection (2) applies despite any other Act unless the other Act expressly provides that it applies despite subsection (2).

Consequential Repeals

Capital Investment Plan Act, 1993

   22.  Part VI (sections 64 to 67) of the Capital Investment Plan Act, 1993 is repealed.

Ministry of Revenue Act

   23.  Subsection 7 (2) and sections 11 and 12 of the Ministry of Revenue Act are repealed.

Ministry of Treasury and Economics Act

   24.  The Ministry of Treasury and Economics Act is repealed.

Treasury Board Act, 1991

   25.  The Treasury Board Act, 1991 is repealed.

Consequential Amendments

Auditor General Act

   26.  The definition of "fiscal year" in section 1 of the Auditor General Act is amended by striking out "Ministry of Treasury and Economics Act" at the end and substituting "Financial Administration Act".

Crown Employees Collective Bargaining Act, 1993

   27.  Paragraph 13 of subsection 1.1 (3) of the Crown Employees Collective Bargaining Act, 1993 is amended by striking out "sections 6, 7, 8 or 9 of the Treasury Board Act, 1991" at the end and substituting "Part 0.1 of the Financial Administration Act".

Electricity Act, 1998

   28.  Subsection 81 (1.1) of the Electricity Act, 1998 is amended by striking out "subsection 13 (3) of the Ministry of Treasury and Economics Act" at the end and substituting "Part 0.1 of the Financial Administration Act".

Investing in Ontario Act, 2008

   29.  Subsection 1 (3) of the Investing in Ontario Act, 2008 is amended by striking out "section 13 of the Ministry of Treasury and Economics Act" at the end and substituting "Part 0.1 of the Financial Administration Act".

Legislative Assembly Act

   30.  Section 105 of the Legislative Assembly Act is amended by striking out "the Management Board of Cabinet Act, the Financial Administration Act or the Ministry of Treasury and Economics Act" and substituting "the Management Board of Cabinet Act or the Financial Administration Act".

Metrolinx Act, 2006

   31.  Subsection 28 (1) of the Metrolinx Act, 2006 is amended by striking out "the Treasury Board of Cabinet" at the end and substituting "Treasury Board".

Ontario Provincial Police Collective Bargaining Act, 2006

   32.  Subparagraph 2 iv of subsection 2 (1) of the Ontario Provincial Police Collective Bargaining Act, 2006 is amended by striking out "section 6, 7, 8 or 9 of the Treasury Board Act, 1991" and substituting "Part 0.1 of the Financial Administration Act".

Commencement

Commencement

   33.  This Schedule comes into force on the day the Ontario Tax Plan for More Jobs and Growth Act, 2009 receives Royal Assent.

Schedule K
Interim Appropriation for 2010-2011 Act, 2009

Interpretation

   1.  (1)  Expressions used in this Act have the same meaning as in the Supply Act, 2009 unless the context requires otherwise.

Same

   (2)  In this Act, a reference to the estimates and supplementary estimates for 2010-11 means the estimates and supplementary estimates for the fiscal year ending on March 31, 2011 as tabled in the Assembly on or before March 31, 2011.

Expenses of the public service

   2.  (1)  For the fiscal year ending on March 31, 2011, amounts not exceeding a total of $55,000,000,000,

  (a)  may be paid out of the Consolidated Revenue Fund to be applied to the expenses of the public service that are not otherwise provided for; or

  (b)  may be recognized as non-cash expenses of the public service.

Applied in accordance with estimates and supplementary estimates

   (2)  The amounts referred to in subsection (1) must be applied in accordance with the votes and items set out in the estimates and supplementary estimates for 2010-11.

Investments of the public service

   3.  (1)  For the fiscal year ending on March 31, 2011, amounts not exceeding a total of $1,500,000,000,

  (a)  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; or

  (b)  may be recognized as non-cash investments of the public service.

Applied in accordance with estimates and supplementary estimates

   (2)  The amounts referred to in subsection (1) must be applied in accordance with the votes and items set out in the estimates and supplementary estimates for 2010-11.

Expenses of the Legislative Offices

   4.  For the fiscal year ending on March 31, 2011, 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 2010-11.

Expenditures of the public service

   5.  An expenditure of the public service in the votes and items set out in the estimates and supplementary estimates for 2010-11 may be incurred or recognized by the Crown through any ministry to which, during the fiscal year ending on March 31, 2011, 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, 2010.

Short title

   7.  The short title of the Act set out in this Schedule is the Interim Appropriation for 2010-2011 Act, 2009.

Schedule L
Management Board of Cabinet Act

   1.  Subsection 2 (2) of the Management Board of Cabinet Act is amended by striking out "six other members" and substituting "seven other members".

Commencement

   2.  This Schedule comes into force on the day the Ontario Tax Plan for More Jobs and Growth Act, 2009 receives Royal Assent.

Schedule M
Ministry of Revenue Act

   1.  (1)  Subsection 6.1 (1) of the Ministry of Revenue Act is amended by adding the following definition:

"federal public service" has the same meaning as "public service" in subsection 2 (1) of the Public Service Employment Act (Canada); ("fonction publique fédérale")

   (2)  Subsections 6.1 (3) and (4) of the Act are repealed and the following substituted:

Transfer between certain pension plans

   (3)  This section governs the transfer of assets from the Public Service Pension Plan (Ontario) and from the OPSEU Pension Plan (Ontario) to the Public Service Superannuation Plan (Canada) in respect of eligible former employees in the Ministry or in the Ministry of Finance who become employees in the federal public service in connection with a prescribed restructuring of tax authority between the Province and Canada or a prescribed transfer of tax administration activities from the Province to Canada.

Nature of transfer

   (3.1)  The restructuring or transfer prescribed under subsection (3) is deemed, for the purposes of the Pension Benefits Act, to be a transaction described in subsection 80 (1) of that Act.

Eligible former employees

   (4)  A person who ceases to be employed in the Ministry or in the Ministry of Finance is an eligible former employee for the purposes of this section if he or she becomes an employee in the federal public service in such circumstances as may be prescribed.

   (3)  Subsection 6.1 (5) of the Act is amended by striking out "in the Ministry" in the portion before clause (a) and substituting "in the Ministry or in the Ministry of Finance".

   (4)  Subsection 6.1 (7) of the Act is amended,

  (a)  by striking out "the Canada Revenue Agency" at the beginning of clause (a) and substituting "the Government of Canada"; and

  (b)  by striking out "the Canada Revenue Agency" at the beginning of clause (b) and substituting "the Government of Canada".

   (5)  Subsection 6.1 (10) of the Act is repealed and the following substituted:

Regulations

   (10)  The Minister may make regulations prescribing the matters referred to in subsections (3) and (4) and clause (5) (a).

Commencement

   2.  This Schedule comes into force on a day to be named by proclamation of the Lieutenant Governor.

Schedule N
Ontario Capital Growth Corporation Act, 2008

   1.  Clauses 4 (a), (b) and (c) of the Ontario Capital Growth Corporation Act, 2008 are repealed and the following substituted:

  (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 acquire, manage and otherwise deal with the other investments or classes of investments that are prescribed by the regulations;

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

  (d)  to receive, hold, invest, sell or otherwise deal with property, whether real or personal, in connection with the objects described in clause (a), (b) or (c).

   2.  (1)  Subsection 6 (3) of the Act is amended by striking out "make investments" in the portion before clause (a). 

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

Temporary investments

   (4)  The Corporation may temporarily invest money not immediately required to carry out its objects, but only if,

  (a)  a by-law of the Corporation authorizes the investments which shall be selected from the following:

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

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

  (b)  the Minister of Finance has consented to the by-law mentioned in clause (a); and

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

   3.  Subsection 13 (2) of the Act is repealed.

   4.  Clause 19 (1) (a) of the Act is repealed and the following substituted:

  (a)  prescribing anything that this Act describes as being prescribed by the regulations;

Commencement

   5.  This Schedule comes into force on the day the Ontario Tax Plan for More Jobs and Growth Act, 2009 receives Royal Assent.

Schedule O
Ontario Loan Act, 2009 (No. 2)

Borrowing authorized

   1.  (1)  The Lieutenant Governor in Council may borrow in any manner provided by the Financial Administration Act such sums, not exceeding a total aggregate amount of $15.1 billion, as are considered necessary to discharge any indebtedness or obligation of Ontario or to make any payment authorized or required by any Act to be made out of the Consolidated Revenue Fund.

Other Acts

   (2)  The authority to borrow conferred by this Act is in addition to that conferred by any other Act.

Expiry

   2.  (1)  No order in council authorizing borrowing under this Act shall be made after December 31, 2011.

Same

   (2)  The Crown shall not borrow money after December 31, 2012 under an order in council that authorizes borrowing under this Act unless, on or before December 31, 2012,

  (a)  the Crown has entered into an agreement to borrow the money under the order in council; or

  (b)  the Crown has entered into an agreement respecting a borrowing program and the agreement enables the Crown to borrow up to a specified limit under the order in council.

Commencement

   3.  The Act set out in this Schedule comes into force on the day the Ontario Tax Plan for More Jobs and Growth Act, 2009 receives Royal Assent.

Short title

   4.  The short title of the Act set out in this Schedule is the Ontario Loan Act, 2009 (No. 2).

Schedule P
Proceedings Against the Crown Act

   1.  Subsection 2 (1) of the Proceedings Against the Crown Act is amended,

  (a)  by striking out "the Corporations Tax Act";

  (b)  by striking out "the Income Tax Act", "the Mining Tax Act" and "the Motor Vehicle Fuel Tax Act, the Retail Sales Tax Act, the Taxation Act, 2007";

   (c)  by adding "Parts V.1 (Debt Retirement Charge) and VI (Special Payments) of the Electricity Act, 1998" before "the Workplace Safety and Insurance Act, 1997"; and

  (d)  by striking out "The Succession Duty Act, being chapter 449 of the Revised Statutes of Ontario, 1970" at the end and substituting "every statute that imposes a tax payable to the Crown or the Minister of Finance".

Commencement

   2.  This Schedule comes into force on the day the Ontario Tax Plan for More Jobs and Growth Act, 2009 receives Royal Assent.

Schedule Q
Professional engineers act

   1.  Section 15 of the Professional Engineers Act is amended by adding the following subsection:

Exclusion

   (9)  Sections 3.2, 3.3 and 3.4 of the Business Corporations Act do not apply to,

  (a)  a corporation that has been issued a certificate of authorization under subsection (1); or

  (b)  a corporation that is a partner in a partnership of corporations that has been issued a certificate of authorization under subsection (3).

Commencement

   2.  This Schedule is deemed to have come into force on November 1, 2001.

Schedule R
Retail Sales Tax Act

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

Time limit for refund of certain taxes

   (16.0.0.1)  Despite clause (16) (b), a vendor shall not, after October 31, 2010, refund any tax imposed under section 2 or 3.1.

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

If exempt property put to taxable use

   (21)  If tangible personal property is purchased exempt from the tax imposed by this Act and the tangible personal property is subsequently put to a taxable use before July 1, 2010, the purchaser shall pay the tax imposed by this Act on the fair value of the tangible personal property at the time of the change in use.

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

Transitional rules re s. 2

Definitions

   2.0.0.1  (1)  In this section,

"commercial parking" means the taxable service described in clause (e) of the definition of "taxable service" in subsection 1 (1); ("stationnement commercial")

"consideration" means an amount that would be consideration for the purposes of Part IX of the Excise Tax Act (Canada) if "supply" in the definition of "consideration" in subsection 123 (1) of that Act were read as "sale" or "promotional distribution of an admission", depending on the context; ("contrepartie")

"specified purchaser" means a person who,

  (a)  is a consumer within the meaning of subsection 123 (1) of the Excise Tax Act (Canada) in respect of the purchase of tangible personal property, a taxable service or an admission,

  (b)  is not registered under Part IX of the Excise Tax Act (Canada) and is not a consumer within the meaning of subsection 123 (1) of that Act, or

   (c)  satisfies such conditions as the Minister may prescribe. ("acheteur déterminé")

When consideration, etc., becomes due

   (2)  For the purposes of this section, an amount that is a payment or all or part of the consideration for tangible personal property, a taxable service or admission to a place of amusement becomes due on the earliest of:

    1.  The earlier of the day an invoice is first issued for that amount and the date of that invoice.

    2.  The day the invoice would have been issued for that amount but for an undue delay.

    3.  The day the purchaser is required to pay that amount pursuant to an agreement in writing.

Tangible personal property, sale after June 30, 2010

   (3)  The following rules apply to a purchaser of tangible personal property if the time of the sale is after June 30, 2010:

    1.  Unless otherwise provided in this Act or the regulations, no tax is payable by the purchaser under subsection 2 (1) or (2).

    2.  Despite paragraph 1, tax is payable by the purchaser under subsection 2 (1) or (2), as the case may be,

            i.  if the purchaser is a specified purchaser and all or part of the consideration becomes due before May 1, 2010 or is paid before May 1, 2010 without having become due, or

           ii.  if the purchaser is not a specified purchaser and all or part of the consideration becomes due before October 15, 2009 or is paid before October 15, 2009 without having become due.

    3.  If paragraph 2 applies, the fair value for the purposes of subsection 2 (1) or (2), as the case may be, is deemed to be,

            i.  if the purchaser is a specified purchaser, the value of the consideration that becomes due before May 1, 2010 or that is paid before May 1, 2010 without having become due, or

           ii.  if the purchaser is not a specified purchaser, the value of the consideration that becomes due before October 15, 2009 or that is paid before October 15, 2009 without having become due.

Taxable service provided only after June 30, 2010

   (4)  The following rules apply to a purchaser of a taxable service, other than commercial parking, that is provided only after June 30, 2010:

    1.  Unless otherwise provided in this Act or the regulations, no tax is payable by the purchaser under subsection 2 (3) or (4).

    2.  Despite paragraph 1, tax is payable by the purchaser under subsection 2 (3) or (4), as the case may be,

            i.  if the purchaser is a specified purchaser and all or part of the consideration becomes due before May 1, 2010 or is paid before May 1, 2010 without having become due, or

           ii.  if the purchaser is not a specified purchaser and all or part of the consideration becomes due before October 15, 2009 or is paid before October 15, 2009 without having become due.

    3.  If paragraph 2 applies, the fair value for the purposes of subsection 2 (3) or (4), as the case may be, is deemed to be,

            i.  if the purchaser is a specified purchaser, the value of the consideration that becomes due before May 1, 2010 or that is paid before May 1, 2010 without having become due, or

           ii.  if the purchaser is not a specified purchaser, the value of the consideration that becomes due before October 15, 2009 or that is paid before October 15, 2009 without having become due.

Rental payments and commercial parking payments, periods beginning after June 30, 2010

   (5)  The following rules apply with respect to a rental payment for a period beginning after June 30, 2010 that is made by or on behalf of a purchaser who rents or leases a taxable service or acquires tangible personal property at a sale that is a lease or rental referred to in clause 2 (7) (b) and with respect to a payment for a period beginning after June 30, 2010 that is made by or on behalf of a purchaser for commercial parking:

    1.  Unless otherwise provided in this Act or the regulations, no tax is payable by the purchaser under section 2.

    2.  Despite paragraph 1, tax is payable by the purchaser under section 2,

            i.  if the purchaser is a specified purchaser and all or part of the payment becomes due before May 1, 2010 or is paid before May 1, 2010 without having become due, or

           ii.  if the purchaser is not a specified purchaser and all or part of the payment becomes due before October 15, 2009 or is paid before October 15, 2009 without having become due.

    3.  If paragraph 2 applies, the fair value for the purposes of section 2 is deemed to be,

            i.  if the purchaser is a specified purchaser, the fair value of the payment that becomes due before May 1, 2010 or that is paid before May 1, 2010 without having become due, or

           ii.  if the purchaser is not a specified purchaser, the fair value of the payment that becomes due before October 15, 2009 or that is paid before October 15, 2009 without having become due.

Taxable service not substantially completed before July 1, 2010

   (6)  The following rules apply to a purchaser of a taxable service, other than transient accommodation and commercial parking, that begins before July 1, 2010 and is not substantially completed before that day:

    1.  Unless otherwise provided in this Act or the regulations, no tax is payable by the purchaser under subsection 2 (3) in respect of the part of the taxable service provided after June 30, 2010.

    2.  Despite paragraph 1, tax is payable by the purchaser under subsection 2 (3),

            i.  if the purchaser is a specified purchaser and all or part of the consideration becomes due before May 1, 2010 or is paid before May 1, 2010 without having become due, or

           ii.  if the purchaser is not a specified purchaser and all or part of the consideration becomes due before October 15, 2009 or is paid before October 15, 2009 without having become due.

    3.  If paragraph 2 applies and the purchaser is a specified purchaser, the fair value for the purposes of subsection 2 (3) is deemed to be the sum of,

            i.  the value of the consideration that becomes due before May 1, 2010 or that is paid before May 1, 2010 without having become due, and

           ii.  the value of the consideration,

                  A.  that relates to the part of the taxable service provided before July 1, 2010, and

                  B.  that becomes due after April 30, 2010 or that is paid after April 30, 2010 without having become due before May 1, 2010.

    4.  If paragraph 2 applies and the purchaser is not a specified purchaser, the fair value for the purposes of subsection 2 (3) is deemed to be the sum of,

            i.  the value of the consideration that becomes due before October 15, 2009 or that is paid before October 15, 2009 without having become due before that day, and

           ii.  the value of the consideration,

                  A.  that relates to the part of the taxable service provided before July 1, 2010, and

                  B.  that becomes due after October 14, 2009 or that is paid after October 14, 2009 without having become due before October 15, 2009. 

Rental payments and commercial parking payments, periods ending on or after July 31, 2010

   (7)  The following rules apply with respect to a rental payment for a period ending on or after July 31, 2010 that is made by or on behalf of a purchaser who rents or leases a taxable service or acquires tangible personal property at a sale that is a lease or rental referred to in clause 2 (7) (b) and with respect to a payment for a period ending on or after July 31, 2010 that is made by or on behalf of a purchaser for commercial parking:

    1.  Unless otherwise provided in this Act or the regulations, no tax is payable by the purchaser under section 2 in respect of the part of the payment that relates to any part of the period that is after June 30, 2010.

    2.  Despite paragraph 1, tax is payable by the purchaser under section 2,

            i.  if the purchaser is a specified purchaser and all or part of the payment becomes due before May 1, 2010 or is paid before May 1, 2010 without having become due, or

           ii.  if the purchaser is not a specified purchaser and all or part of the payment becomes due before October 15, 2009 or is paid before October 15, 2009 without having become due.

    3.  If paragraph 2 applies and the purchaser is a specified purchaser, the fair value for the purposes of section 2 is deemed to be the sum of,

            i.  the fair value of the payment that becomes due before May 1, 2010 or that is paid before May 1, 2010 without having become due, and

           ii.  the fair value of the payment,

                  A.  that relates to any part of the period that is before July 1, 2010, and

                  B.  that becomes due after April 30, 2010 or that is paid after April 30, 2010 without having become due before May 1, 2010.

    4.  If paragraph 2 applies and the purchaser is not a specified purchaser, the fair value for the purposes of section 2 is deemed to be the sum of,

            i.  the fair value of the payment that becomes due before October 15, 2009 or that is paid before October 15, 2009 without having become due, and

           ii.  the fair value of the payment,

                  A.  that relates to any part of the period that is before July 1, 2010, and

                  B.  that becomes due after October 14, 2009 or that is paid after October 14, 2009 without having become due before October 15, 2009.

Admission to place of amusement, only after June 30, 2010

   (8)  The following rules apply to a purchaser of an admission to a place or places of amusement that begins after June 30, 2010:

    1.  Unless otherwise provided in this Act or the regulations, no tax is payable by the purchaser under subsection 2 (5).

    2.  Despite paragraph 1, tax is payable by the purchaser under subsection 2 (5),

            i.  if the purchaser is a specified purchaser and all or part of the consideration becomes due before May 1, 2010 or is paid before May 1, 2010 without having become due, or

           ii.  if the purchaser is not a specified purchaser and all or part of the consideration becomes due before October 15, 2009 or is paid before October 15, 2009 without having become due.

    3.  If paragraph 2 applies, the price of admission for the purposes of subsection 2 (5) is deemed to be,

            i.  if the purchaser is a specified purchaser, the value of the consideration that becomes due before May 1, 2010 or that is paid before May 1, 2010 without having become due, or

           ii.  if the purchaser is not a specified purchaser, the value of the consideration that becomes due before October 15, 2009 or that is paid before October 15, 2009 without having become due.

Admission to place of amusement, not substantially completed before July 1, 2010

   (9)  The following rules apply to a purchaser of an admission to a place or places of amusement that relates to a period that begins before July 1, 2010 and is not substantially completed before that day:

    1.  Unless otherwise provided in this Act or the regulations, no tax is payable by the purchaser under subsection 2 (5) in respect of the price of admission that relates to the part of the period after June 30, 2010.

    2.  Despite paragraph 1, tax is payable by the purchaser under subsection 2 (5),

            i.  if the purchaser is a specified purchaser and all or part of the consideration becomes due before May 1, 2010 or is paid before May 1, 2010 without having become due, or

           ii.  if the purchaser is not a specified purchaser and all or part of the consideration becomes due before October 15, 2009 or is paid before October 15, 2009 without having become due.

    3.  If paragraph 2 applies and the purchaser is a specified purchaser, the price of admission for the purposes of subsection 2 (5) is deemed to be the sum of,

            i.  the value of the consideration that becomes due before May 1, 2010 or that is paid before May 1, 2010 without having become due, and

           ii.  the value of the consideration,

                  A.  that relates to the part of the period that is before July 1, 2010, and

                  B.  that becomes due after April 30, 2010 or that is paid after April 30, 2010 without having become due before May 1, 2010.

    4.  If paragraph 2 applies and the purchaser is not a specified purchaser, the price of admission for the purposes of subsection 2 (5) is deemed to be the sum of,

            i.  the value of the consideration that becomes due before October 15, 2009 or that is paid before October 15, 2009 without having become due, and

           ii.  the value of the consideration,

                  A.  that relates to the part of the period that is before July 1, 2010, and

                  B.  that becomes due after October 14, 2009 or that is paid after October 14, 2009 without having become due before October 15, 2009.

Property brought into Ontario

   (10)  Subsection 2 (18) does not apply to tangible personal property that is brought into Ontario after June 30, 2010.

Time limit for collecting and paying tax

   (11)  Tax imposed under section 2 shall be collected by a vendor and paid by a purchaser at the earlier of,

  (a)  the time the tax would otherwise be required under this Act to be collected and paid; and

  (b)  October 31, 2010.

Limitation on refunds

   (12)  The following rules apply for the purposes of determining the amount of tax to be refunded under subsection 2 (11) or (16) if a purchaser paid tax under section 2 in respect of tangible personal property that is returned to the vendor after June 30, 2010 but before November 1, 2010:

    1.  If the tangible personal property is returned for a full refund of the consideration previously paid, the tax paid in respect of the sale may be refunded to the purchaser.

    2.  If the tangible personal property is exchanged for other tangible personal property having a consideration that is less than the consideration paid for the original tangible personal property, the tax that was paid in respect of the difference in consideration may be refunded to the purchaser.

    3.  If the tangible personal property is exchanged for other tangible personal property and the amount of the consideration paid for the original tangible personal property is equal to or less than the amount of the consideration for the other tangible personal property, no tax shall be refunded.

Time limit for applications for refunds

   (13)  Applications for refunds or rebates under this Act, other than applications for refunds or rebates in respect of tax imposed under section 2.1, 2.1.1 or 4.2, must be made to the Minister on or before the earlier of,

  (a)  the day that would otherwise be the last day on which the application may be made under the applicable provision of this Act or the regulations; and

  (b)  June 30, 2014.

   3.  Section 2.0.1 of the Act is repealed and the following substituted:

Progress payments

   2.0.1  Despite section 2.0.0.1, the tax imposed under subsection 2 (1) or (3) shall apply in the manner prescribed by the Minister if,

  (a)  a purchaser acquires tangible personal property or a taxable service under a contract to construct, renovate, alter or repair real property, a ship or a vessel; and

  (b)  progress payments under the contract with respect to the tangible personal property or taxable service become due or are paid without becoming due after October 14, 2009 and before July 1, 2010.

   4.  Subsection 2.1 (10) of the Act is repealed and the following substituted:

Further exemptions

   (10)  Despite subsection (1), no tax is payable on premiums, assessments or contributions paid pursuant to the Canada Pension Plan, the Credit Unions and Caisses Populaires Act, 1994, the Crop Insurance Act (Ontario), 1996, the Employment Insurance Act (Canada), the Workplace Safety and Insurance Act, 1997 or any other statute that is prescribed by the regulations.

   5.  (1)  This section applies only if,

  (a)  Bill 212 (Good Government Act, 2009), introduced on October 27, 2009, receives Royal Assent;

  (b)  section 2 of Schedule 24 to Bill 212 comes into force; and

   (c)  the Lieutenant Governor in Council makes a regulation under clause 12 (h) of the Ministry of Tourism and Recreation Act, as enacted by section 2 of Schedule 24 to Bill 212, establishing geographic boundaries of tourism regions within the Province, and the regulation is in force.

   (2)  References in this section to provisions of Bill 212 are references to those provisions as they were numbered in the first reading version of the Bill.

   (3)  The Act is amended by adding the following section:

Tax on transient accommodation

   2.1.1  (1)  Every purchaser who, on or after the day this section comes into force, purchases a taxable service that is transient accommodation in a tourism region in the Province established by regulations made under the Ministry of Tourism and Recreation Act shall pay to Her Majesty in right of Ontario a tax equal to the fair value of the transient accommodation multiplied by the tax rate, not to exceed 3 per cent, that is prescribed by the Minister.

Invoice

   (2)  The amount of tax payable by a purchaser under subsection (1) must be shown as a separate item on the purchaser's invoice or receipt.

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

Exception

   (2.1)  Unless otherwise provided in this Act or the regulations, no tax is payable under subsection (2) by a registrant if the registration year begins on or after July 1, 2010.

   7.  Clause 3.1 (1) (d) of the Act is repealed and the following substituted:

  (d)  $0.13 per litre of beer or wine delivered to the person on or after April 19, 1994 and before July 1, 2010.

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

Tax for fuel conservation

   (1)  Every purchaser of a new passenger vehicle or sport utility vehicle shall pay to Her Majesty in right of Ontario a tax in respect of the consumption or use of the vehicle in the amount determined under subsection (5) or (6) if,

  (a)  the first sale of the vehicle is a retail sale to the purchaser in Ontario before July 1, 2010;

  (b)  the first sale of the vehicle is a rental or lease to the purchaser in Ontario for a term of at least one year commencing before July 1, 2010;

   (c)  the first sale of the vehicle is outside Ontario and before July 1, 2010 the vehicle is brought into Ontario by the purchaser or delivered in Ontario to the purchaser; or

  (d)  the first sale of the vehicle in Ontario is a lease or rental of the vehicle for a term of less than one year to the purchaser or another person and the purchaser leases or rents the vehicle within 180 days of the first sale but before July 1, 2010.

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

   (3)  Subsection 4 (7) of the Act is amended by striking out "clause (4) (c)" and substituting "clause (1) (d)".

   (4)  Subsection 4 (8) of the Act is repealed and the following substituted:

If leasing vehicle before and after July 1, 2010

   (8)  A lessor of a vehicle referred to in clause (1) (d) may, in lieu of collecting and remitting the tax required to be paid by purchasers as specified under subsection (7), pay an amount equal to the tax on the vehicle as specified in subsection (5) or (6), multiplied by the ratio of the number of days the lessor owned the vehicle before July 1, 2010 to 180 and, on payment of that amount, the purchasers of the vehicle are not liable to pay tax under this section.

   (5)  Subsections 4 (10) and (11) of the Act are repealed and the following substituted:

Reporting by manufacturers and importers

   (10)  Every manufacturer or importer of vehicles who intends to sell in Ontario before July 1, 2010 a passenger vehicle or sport utility vehicle or a type of either of them shall provide to the Minister at least 30 days before the date of the sale of the vehicle or the first sale of the type of vehicle, as the case may be, in Ontario such information as is prescribed by the Minister to permit the Minister to determine the highway fuel consumption rating for the vehicle or type of vehicle.

   9.  (1)  Subsection 4.1 (1) of the Act is repealed and the following substituted:

Tax credit for fuel conservation

   (1)  Every purchaser of a new passenger car is entitled to a tax credit of $100 to be applied against the purchaser's liability for tax under section 2 if,

  (a)  the first sale of the new passenger car is a retail sale to the purchaser in Ontario before July 1, 2010;

  (b)  the first sale of the new passenger car is a rental or lease to the purchaser in Ontario for a term commencing before July 1, 2010;

   (c)  the first sale of the new passenger car is outside Ontario and before July 1, 2010 the vehicle is brought into Ontario by the purchaser or delivered in Ontario to the purchaser; or

  (d)  the first sale of the new passenger car in Ontario is a lease or rental of the vehicle for a term of less than one year to the purchaser or another person and the purchaser leases or rents the vehicle within 180 days of the first sale but before July 1, 2010.

   (2)  Subsection 4.1 (3) of the Act is repealed.

   (3)  Subsection 4.1 (4) of the Act is repealed and the following substituted:

Application of clause (1) (d)

   (4)  The total amount of the tax credit payable under this section to all purchasers referred to in clause (1) (d) in respect of the same passenger car shall not exceed $100, and each purchaser is entitled to receive the proportion of the tax credit that, in the opinion of the Minister, reasonably represents the use of the passenger car by that purchaser during the 180 days referred to in that clause.

   (4)  Subsection 4.1 (6) of the Act is amended by striking out "clause (3) (a)" and substituting "clause (1) (a) or (b)".

   10.  (1)  Subsections 4.2 (1) and (2) of the Act are repealed and the following substituted:

Tax on specified vehicles

   (1)  Subject to subsection (5), every purchaser of a specified vehicle shall pay to Her Majesty in right of Ontario a tax in respect of the consumption or use of the specified vehicle computed at the rate of 8 per cent of the fair market value of the specified vehicle if the purchaser acquires the vehicle before July 1, 2010 and shall not pay tax in respect of the consumption or use of the specified vehicle under section 2.

Same, purchases after June 30, 2010, etc.

   (1.1)  Every purchaser of a specified vehicle shall pay to Her Majesty in right of Ontario a tax in respect of the consumption or use of the specified vehicle computed at the rate of 13 per cent of the fair market value of the specified vehicle if the purchaser,

  (a)  acquires the vehicle in Ontario after June 30, 2010; or

  (b)  acquires the vehicle in Canada but outside Ontario and,

           (i)  brings the vehicle into Ontario after June 30, 2010, or

          (ii)  receives delivery of the vehicle in Ontario after June 30, 2010.

Exception if severe damage or excessive use

   (2)  Despite subsections (1) and (1.1), if both the fair value and the appraised value, as defined by the Minister, of a specified vehicle are, by reason of severe damage or excessive use, less than the average wholesale price of the specified vehicle as determined in the manner prescribed by the Minister, the tax payable under subsection (1) or (1.1) in respect of the consumption or use of the specified vehicle is the greater of the fair value or appraised value multiplied by the tax rate set out in subsection (1) or (1.1), whichever applies.

   (2)  The definition of "fair market value" in subsection 4.2 (3) of the Act is amended by striking out "motor vehicle" and substituting "specified vehicle".

   (3)  The definitions of "gross weight", "highway", "motorcycle" and "vehicle" in subsection 4.2 (3) of the Act are repealed and the following substituted:

"gross weight", "highway" and "motorcycle" each has the same meaning as in the Highway Traffic Act; ("poids brut", "voie publique", "motocyclette")

   (4)  Subsection 4.2 (3) of the Act is amended by adding the following definition:

"specified vehicle" means,

  (a)  for the purposes of the tax imposed under subsection (1), a motor vehicle, and

  (b)  for the purposes of the tax imposed under subsection (1.1),

           (i)  a motor vehicle or other vehicle for which a permit is required under the Highway Traffic Act to operate on a highway,

          (ii)  an off-road vehicle or motorized snow vehicle for which a permit is required under the Off-Road Vehicles Act, or the Motorized Snow Vehicles Act,

         (iii)  aircraft,

         (iv)  a vessel, or

          (v)  another type of vehicle prescribed by the Minister. ("véhicule déterminé")

   (5)  Subsection 4.2 (4) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Exemptions

   (4)  Subsections (1) and (1.1) do not apply in respect of a specified vehicle that is,

.     .     .     .     .

   (6)  Subsection 4.2 (4) of the Act is amended by adding the following clauses:

(b.1) acquired after June 30, 2010 by a purchaser at a sale that is,

           (i)  a taxable supply by a registrant under Part IX of the Excise Tax Act (Canada), or

          (ii)  an exempt supply under Part I of Schedule V to the Excise Tax Act (Canada), other than an exempt supply prescribed by the Minister;

(b.2) acquired after June 30, 2010 and that would have been exempt from tax under this Act if it had been acquired before July 1, 2010;

   (7)  Clause 4.2 (4) (d) of the Act is repealed and the following substituted:

  (d)  acquired by a person by gift from a member of his or her family, as defined in subsection 8 (2), from his or her brother or sister or from any other individual of a class prescribed by the Minister, if the vehicle has not been transferred on a tax-exempt basis under this clause within the 12-month period immediately preceding the acquisition;

   (8)  Subsection 4.2 (5) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Application of s. 2

   (5)  Despite subsection (1) and subject to subsection (5.1), section 2 applies in respect of a specified vehicle that is,

.     .     .     .     .

   (9)  Clause 4.2 (5) (c) of the Act is amended by striking out "motor vehicle" and substituting "vehicle".

   (10)  Clause 4.2 (5) (d) of the Act is amended by striking out "used motor vehicle" and substituting "vehicle".

   (11)  Section 4.2 of the Act is amended by adding the following subsection:

When subs. (5) not applicable

   (5.1)  If tax is not payable under section 2 in respect of a specified vehicle by reason of section 2.0.0.1, subsection (5) does not apply and tax is payable under this section.

   (12)  Subsections 4.2 (6), (7) and (8) of the Act are repealed and the following substituted:

Deemed purchaser

   (6)  A purchaser of a specified vehicle is subject to pay tax under this section if,

  (a)  the vehicle is purchased before July 1, 2010 and the sale of the vehicle to the purchaser is not the first sale of the vehicle at a retail sale in Ontario;

  (b)  the vehicle is purchased at a sale in Ontario after June 30, 2010 or brought into Ontario after that day, or delivery of the vehicle is received in Ontario after that day;

   (c)  the sale of the vehicle to the purchaser occurs after the vehicle is first brought into Ontario and tax was paid or ought to have been paid by the seller of the vehicle under subsection 2 (18) or the seller was exempt from tax under this Act; or

  (d)  the purchaser is a shareholder of a corporation and acquires the specified vehicle at a sale as defined in clause (i) of the definition of "sale" in subsection 1 (1). 

Time of payment

   (7)  A purchaser shall pay the tax imposed under this section,

  (a)  at the time the purchaser applies for a permit for the vehicle under the Highway Traffic Act, the Off-Road Vehicles Act or the Motorized Snow Vehicles Act, as the case may be; or

  (b)  at the time of the sale or, if the purchaser purchased the vehicle in Canada but outside Ontario, at the time the purchaser brings the vehicle into Ontario or receives delivery of the vehicle in Ontario.

Those claiming exemption

   (8)  A person claiming an exemption from taxation under subsection (4) shall provide the documentation prescribed by the Minister to,

  (a)  the person authorized by the Minister under section 11, at the time the person applies for a permit under the Highway Traffic Act, the Off-Road Vehicles Act or the Motorized Snow Vehicles Act, if a permit is required under any of those Acts; or

  (b)  the Minister in the manner and at the time prescribed by the Minister in any other case.

   (13)  Subsection 4.2 (9) of the Act is amended,

  (a)  by striking out "used motor vehicle" wherever it appears and substituting in each case "specified vehicle"; and

  (b)  by striking out "subsection (1)" and substituting "subsection (1) or (1.1)".

   11.  (1)  Subparagraph 38 iii of subsection 7 (1) of the Act is repealed.

   (2)  Paragraphs 70 and 71 of subsection 7 (1) of the Act are repealed.

   12.  (1)  The French version of clause 9 (2) (e) of the Act is amended by striking out "une institution" and substituting "un établissement".

   (2)  Paragraph 2 of subsection 9 (3) of the Act is repealed.

   13.  Section 14 of the Act is amended by adding the following subsection:

Time limit

   (1.1)  No compensation is payable under subsection (1) in respect of a period that commences after March 31, 2010.

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

Small business transition support

   14.1  (1)  The Minister of Finance may pay a small business transition support payment to a person or entity after June 30, 2010 if the person or entity,

  (a)  is an eligible business;

  (b)  satisfies the requirements set out in this section; and

   (c)  satisfies the conditions, if any, prescribed by the Minister.

Eligible business, defined

   (2)  An individual, corporation, partnership, trust or other entity is an eligible business for the purposes of this section if the individual, corporation, partnership, trust or other entity,

  (a)  is not a listed financial institution within the meaning assigned by subsection 123 (1) of the Excise Tax Act (Canada);

  (b)  carries on business in Ontario on July 1, 2010 and is a registrant for the purposes of Part IX of the Excise Tax Act (Canada) on that day;

   (c)  makes taxable supplies for the purposes of Part IX of the Excise Tax Act (Canada) in the course of carrying on business;

  (d)  has taxable revenue of less than $2,000,000,

           (i)  for its first fiscal year commencing after June 30, 2010, or

          (ii)  for its last fiscal year commencing before July 1, 2010 if the Minister considers it appropriate in the circumstances to consider the taxable revenue of that fiscal year instead; and

  (e)  satisfies such conditions as the Minister may prescribe.

Amount of payment

   (3)  The amount of a small business transition support payment the Minister may pay to an eligible business is the amount determined in accordance with the rules prescribed by the Minister.

Notice

   (4)  If the Minister determines that an eligible business is entitled to a payment under this section, the Minister shall send a notice to the eligible business setting out the amount of the payment under this section to which the eligible business is entitled and shall pay that amount to the eligible business.

Repayment

   (5)  If an eligible business receives a payment under this section to which it is not entitled or receives a payment greater than the amount to which it is entitled under this section, the eligible business shall repay the amount or the excess amount, as the case may be, to the Minister.

Recovery of amount

   (6)  An amount payable under subsection (5) that has not been paid to the Minister constitutes a debt to Her Majesty in right of Ontario and may be recovered by way of deduction or set-off or may be recovered in any court of competent jurisdiction in proceedings commenced at any time or by any other manner provided by this Act.

Definitions

   (7)  For the purposes of this section,

"fiscal year" means, in respect of a business, the fiscal year of the business as determined for the purposes of Part IX of the Excise Tax Act (Canada); ("exercice")

"taxable revenue" means, in respect of an eligible business, the amount determined under the rules prescribed by the Minister. ("revenu imposable")

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

Disclosure requirement re tax included price advertised

   (4)  If the Minister authorizes a vendor under subsection (2) to advertise or quote a price for tangible personal property, a taxable service or an admission that includes the tax imposed under this Act, the price advertised or quoted is deemed to include the tax that would have been imposed under this Act but for section 2.0.0.1 if,

  (a)  the consideration for the tangible personal property, taxable service or admission,

           (i)  becomes due after October 14, 2009 and before May 1, 2010, or

          (ii)  is paid after October 14, 2009 and before May 1, 2010 without having become due; and

  (b)  the vendor has not disclosed in writing to the purchaser the amount of tax, if any, that is included in the price advertised or quoted.

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

(a.1) prescribing the rate of tax that is payable under section 2.1.1 in respect of transient accommodation in a tourism region;

   (2)  Clauses 48 (3) (k), (o) and (q) of the Act are repealed.

   (3)  Subsection 48 (3) of the Act is amended by adding the following clauses:

   (u)  prescribing circumstances in which subsection 14 (1.1) does not apply;

   (v)  prescribing rules with respect to the determination of amounts payable under section 14.1 to eligible businesses that are associated, as defined by the Minister.

   (4)  Section 48 of the Act is amended by adding the following subsection:

Tax on transient accommodation

   (4.1)  A regulation under clause (3) (a.1),

  (a)  shall not prescribe a tax rate that applies before July 1, 2010; and

  (b)  may prescribe different tax rates for different tourism regions.

   17.  The Act is amended by adding the following sections:

Comprehensive Integrated Tax Coordination Agreement

Comprehensive Integrated Tax Coordination Agreement

   50.  (1)  The Comprehensive Integrated Tax Coordination Agreement dated November 9, 2009, between the Minister on behalf of the Crown in right of Ontario and the Minister of Finance for Canada on behalf of the Government of Canada, is ratified and confirmed.

Amendments

   (2)  The Minister may at any time enter into an agreement with the Minister of Finance for Canada on behalf of the Government of Canada to amend the agreement or any amending agreement.

Other agreements or arrangements

   (3)  The Minister and the Minister of Revenue may, on behalf of the Crown in right of Ontario, enter into such other agreements or arrangements with the Government of Canada as either of them considers necessary or advisable respecting any matter relating to the Comprehensive Integrated Tax Coordination Agreement and its implementation.

Minister may make payments

   (4)  The Minister is authorized to make payments from the Consolidated Revenue Fund in accordance with the Comprehensive Integrated Tax Coordination Agreement and any agreement entered into under subsection (3) from amounts appropriated by the Legislature for those purposes.

Point of sale rebates

Definitions

   51.  (1)  In this section,

"eligible purchaser" means, in respect of property,

  (a)  a person who acquires the property,

  (b)  a person who receives delivery or possession of the property or brings the property into Ontario in circumstances in which tax under section 218.1 or Division IV.1 of Part IX of the Federal Act is payable by the person in respect of the property, or

   (c)  a person who imports the property in circumstances in which tax under section 212.1 of the Federal Act is payable by the person in respect of the property; ("acheteur admissible")

"Federal Act" means the Excise Tax Act (Canada); ("loi fédérale")

"Federal Minister" means a Minister of the Government of Canada who is responsible for the administration, enforcement or collection of the tax imposed under Part IX of the Federal Act; ("ministre fédéral")

"property" has the meaning given to that term by subsection 123 (1) of the Federal Act; ("bien")

"supplier" means a supplier for the purposes of Part IX of the Federal Act; ("fournisseur")

"supply" means a supply for the purposes of Part IX of the Federal Act. ("fourniture")

Supplier may make point of sale rebates

   (2)  A supplier may, on behalf of the Crown in right of Ontario, pay or credit an eligible purchaser with an amount equal to the tax, in whole or in part, that is paid or payable under subsection 165 (2) of the Federal Act for the supply of a qualifying property that is a supply made in Ontario for the purposes of Part IX of the Federal Act.

Qualifying property

   (3)  The following is qualifying property for the purposes of this section:

    1.  Books that satisfy the conditions prescribed by the Minister.

    2.  Children's clothing, footwear and diapers that satisfy the conditions prescribed by the Minister.

    3.  Children's car seats and booster seats that satisfy the conditions prescribed by the Minister.

    4.  Feminine hygiene products prescribed by the Minister.

    5.  Prepared food and beverages prescribed by the Minister that,

            i.  are purchased in circumstances prescribed by the Minister for a total consideration, as determined for the purposes of Part IX of the Federal Act, of not more than $4, and

           ii.  are ready for immediate consumption.

    6.  Newspapers that satisfy the conditions prescribed by the Minister.

Application to Federal Minister

   (4)  An eligible purchaser to whom an amount may be paid or credited under subsection (2) may apply to the Federal Minister for payment of the amount if the amount is not paid or credited by the supplier.

Federal Minister may pay or credit eligible purchaser an amount equal to tax

   (5)  The Federal Minister may, on behalf of the Crown in right of Ontario, pay or credit to an eligible purchaser an amount equal to,

  (a)  the amount of tax payable under section 212.1 of the Federal Act in respect of the importation of a qualifying property by the eligible purchaser; or

  (b)  the amount of tax payable under section 218.1 or Division IV.1 of Part IX of the Federal Act by the eligible purchaser in respect of a qualifying property,

           (i)  that is delivered, or the physical possession of which is transferred, to the eligible purchaser in Ontario, or

          (ii)  that is brought by the eligible purchaser into Ontario.

Deadline for refund

   (6)  The Federal Minister shall, on behalf of the Crown in right of Ontario, pay an amount to which an eligible purchaser is entitled under subsection (4) or (5) if the eligible purchaser makes an application for the amount not more than four years after the day the tax under Part IX of the Federal Act became payable.

Form of application

   (7)  An application under subsection (4) must be made in the form and manner required by the Federal Minister.

Payment to supplier

   (8)  If a supplier pays or credits an amount under subsection (2), the Federal Minister may, on behalf of the Crown in right of Ontario, pay or credit an equal amount to the supplier.

Deduction or set-off from payment to Ontario

   (9)  If the Federal Minister pays or credits an amount under subsection (5), (6) or (8), the Minister of Finance for Canada may deduct from or set off against a payment made or to be made by the Crown in right of Canada to the Crown in right of Ontario an amount equal to the amount that is paid or credited.

Reduction of revenue

   (10)  A payment or credit under this section in respect of qualifying property shall be considered to be a reduction of the revenue which would otherwise be payable to the Crown in right of Ontario under the agreement referred to in section 50.

Regulations

Transitional

   52.  (1)  The Minister may make regulations providing for transitional matters which, in the opinion of the Minister, are necessary or desirable,

  (a)  to facilitate the implementation of the tax in respect of Ontario imposed under Part IX of the Excise Tax Act (Canada);

  (b)  to facilitate the transition from a tax imposed under this Act to a tax imposed under Part IX of the Excise Tax Act (Canada).

Same

   (2)  Without limiting the generality of subsection (1), the Minister may make regulations,

  (a)  prescribing for the purposes of any provision in this Act a date that is later than a date set out,

           (i)  in the provision in this Act, or

          (ii)  in a regulation previously made under this clause;

  (b)  providing for the rebate in whole or in part of tax paid under section 2 on construction materials that are purchased by a contractor, held in the contractor's inventory at the end of the day on June 30, 2010 and used after that day in a contract to which the tax under subsection 165 (2) of the Excise Tax Act (Canada) applies to repair or improve a residential building, and prescribing the conditions that must be satisfied for the rebate to be made, including,

           (i)  persons to whom rebates are payable,

          (ii)  the manner of determining the amount of a rebate,

         (iii)  the class or classes of residential property that qualify for the purposes of the rebate,

         (iv)  requirements regarding construction material held in inventory at the end of day on June 30, 2010,

          (v)  requiring that all applications for rebates must be made to the Minister before January 1, 2011, and

         (vi)  requirements with respect to the nature of the services provided under the contract under which the construction material is used.

Prescribed date applies

   (3)  If the Minister prescribes a date under clause (2) (a), the prescribed date applies for all purposes instead of the date it replaces.

Other matters

   (4)  The Minister may make regulations prescribing additional requirements that apply to suppliers relating to point of sale rebates under subsection 51 (2).

Consequential Amendments

SARS Assistance and Recovery Strategy Act, 2003

   18.  Part II (section 13) of the SARS Assistance and Recovery Strategy Act, 2003 is repealed.

Commencement

Commencement

   19.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Ontario Tax Plan for More Jobs and Growth Act, 2009 receives Royal Assent.

Same

   (2)  Section 5 comes into force on a day to be named by proclamation of the Lieutenant Governor.

Schedule S
Securities Act

   1.  (1)  Subsection 3 (2) of the Securities Act is amended by striking out "14 members" at the end and substituting "15 members".

   (2)  Subsection 3 (5) of the Act is amended by striking out "one or two members as Vice-Chairs" at the end and substituting "up to three members as Vice-Chairs".

   2.  Part II (section 4) of the Act is repealed.

   3.  (1)  Subsection 29 (3) of the Act is repealed and the following substituted:

Automatic suspension, representative ceasing to represent registrant

   (3)  The registration of a representative with respect to a registrant that is a registered dealer, registered advisor or registered investment fund manager is suspended at the time the representative ceases, by reason of any of the following events, to have the authority to act on behalf of the registrant in a capacity that requires the representative to be registered:

    1.  The employment of the representative by the registrant is terminated.

    2.  The representative's employment functions change.

    3.  The partnership or agency relationship of the representative with the registrant changes or is terminated.

   (2)  Subsection 29 (6) of the Act is repealed and the following substituted:

Exception

   (6)  Despite subsection (5), if a proceeding is commenced under section 122 or 128 or under the rules of a self-regulatory organization with respect to a registrant, or a hearing is commenced under section 127 with respect to the activities of the registrant, the registrant's registration continues to remain suspended until an order has been made by the court or a decision is made by the Commission or self-regulatory organization in the proceeding or hearing.

   4.  Paragraph 3 of section 31 of the Act is repealed and the following substituted:

    3.  Refuse to reinstate the registration of the person or company after the registration is suspended.

   5.  (1)  Section 102 of the Act is amended by striking out the portion before the definition of "acquiror" and substituting the following:

Definitions

   102.  For the purposes of this section and sections 102.1 and 102.2,

.     .     .     .     .

   (2)  Section 102 of the Act is amended by adding the following subsections:

Application of ss. 90 and 91

   (2)  Subsections 90 (1), (2) and (4) and section 91 apply for the purposes of this section and sections 102.1 and 102.2 as if the references in subsections 90 (1), (2) and (4) and section 91 to "offeror" were references to "acquiror".

Joint offers

   (3)  For the purposes of this section and sections 102.1 and 102.2, if an acquiror and one or more persons or companies acting jointly or in concert with the acquiror acquire securities, the securities are deemed to be acquired by the acquiror.

   6.  (1)  Subsection 138.8 (4) of the Act is repealed and the following substituted:

Copies to be sent to the Commission

   (4)  A copy of the application for leave to proceed and any affidavits and factums filed with the court shall be sent to the Commission when filed.

   (2)  Section 138.8 of the Act is amended by adding the following subsections:

Requirement to provide notice

   (5)  The plaintiff shall provide the Commission with notice in writing of the date on which the application for leave is scheduled to proceed, at the same time such notice is given to each defendant.

Same, appeal of leave decision

   (6)  If any party appeals the decision of the court with respect to whether leave to commence an action under section 138.3 is granted,

  (a)  each party to the appeal shall provide a copy of its factum to the Commission when it is filed; and

  (b)  the appellant shall provide the Commission with notice in writing of the date on which the appeal is scheduled to be heard, at the same time such notice is given to each respondent.

   7.  (1)  Section 138.9 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)  provide the Commission with notice in writing of the date on which the trial of the action is scheduled to proceed, at the same time such notice is given to each defendant.

   (2)  Section 138.9 of the Act is amended by adding the following subsection:

Appeal

   (2)  If any party to an action under section 138.3 appeals the decision of the court,

  (a)  each party shall provide a copy of its factum to the Commission when it is filed; and

  (b)  the appellant shall provide the Commission with notice in writing of the date on which the appeal is scheduled to be heard, at the same time such notice is given to each respondent.

   8.  Section 138.12 of the Act is repealed and the following substituted:

Power of the Commission

   138.12  The Commission may intervene in an action under section 138.3, in an application for leave to commence the action under section 138.8 and in any appeal from the decision of the court in the action or with respect to whether leave is granted to commence the action.

   9.  The French version of clause 143 (2) (a.0.1) of the Act is amended by striking out "les questions" and substituting "traiter des questions".

Commencement

   10.  This Schedule comes into force on the day the Ontario Tax Plan for More Jobs and Growth Act, 2009 receives Royal Assent.

Schedule T
Succession Duty Legislation repeal Act, 2009

Repeal of succession duty legislation

The Succession Duty Act

   1.  (1)  The Succession Duty Act, being chapter 449 of the Revised Statutes of Ontario, 1970, is repealed to the extent it continues to be in force under section 1 of The Succession Duty Repeal Act, 1979 and applies in respect of a person who died before April 11, 1979.

The Succession Duty Act Supplementary Provisions Act, 1980

   (2)  The Succession Duty Act Supplementary Provisions Act, 1980 is repealed.

Consequential amendments

Land Titles Act

   2.  (1)  Paragraph 1 of subsection 44 (1) of the Land Titles Act is amended by striking out "and succession duties".

Same

   (2)  Section 126 of the Act is repealed.

Registry Act

   3.  Subsections 53 (3), (4), (5), (6) and (7) of the Registry Act are repealed.

Succession Law Reform Act

   4.  The definition of "net value" in subsection 45 (4) of the Succession Law Reform Act is amended by striking out "including succession duty" at the end.

Trustee Act

   5.  (1)  Clause 49 (1) (a) of the Trustee Act is amended by striking out "succession and inheritance taxes or duties" and substituting "and inheritance taxes".

Same

   (2)  The English version of clause 49 (1) (b) of the Act is amended by striking out "succession and inheritance taxes or duties" and substituting "and inheritance taxes".

Commencement and Short Title

Commencement

   6.  The Act set out in this Schedule comes into force on the day the Ontario Tax Plan for More Jobs and Growth Act, 2009 receives Royal Assent.

Short title

   7.  The short title of the Act set out in this Schedule is the Succession Duty Legislation Repeal Act, 2009.

Schedule U
Taxation Act, 2007

   1.  The definition of "lowest tax rate" in subsection 3 (1) of the Taxation Act, 2007 is repealed and the following substituted:

"lowest tax rate" means,

  (a)  6.05 per cent in respect of taxation years ending before January 1, 2010, and

  (b)  5.05 per cent in respect of taxation years ending after December 31, 2009; ("taux d'imposition le moins élevé")

   2.  (1)  Clause 13 (1) (a) of the Act is repealed and the following substituted:

  (a)  for a taxation year ending before January 1, 2010, 38.4828 per cent of the amount determined in respect of the individual for the year under paragraph 121 (a) of the Federal Act;

(a.1) for a taxation year ending after December 31, 2009, 33.75 per cent of the amount determined in respect of the individual for the year under paragraph 121 (a) of the Federal Act; and

   (2)  Clause 13 (2) (b) of the Act is amended by striking out "42.84 per cent" and substituting "35.6073 per cent".

   (3)  Clause 13 (2) (c) of the Act is amended by striking out "46.8501 per cent" and substituting "38.9403 per cent".

   (4)  Clause 13 (2) (d) of the Act is amended by striking out "51.2658 per cent" and substituting "42.6105 per cent".

   3.  The definition of "B" in section 14 of the Act is repealed and the following substituted:

  "B"  is the percentage in paragraph 117 (2) (d) of the Federal Act, and

   4.  Subsection 16 (1) of the Act is repealed and the following substituted:

Ontario surtax

   (1)  The amount of an individual's surtax for a taxation year is the sum of,

  (a)  20 per cent of the amount, if any, by which the gross tax amount of the individual for the year exceeds,

           (i)  $4,257 if the year ends before January 1, 2010, or

          (ii)  $4,006 if the year ends after December 31, 2009; and

  (b)  36 per cent of the amount, if any, by which the gross tax amount of the individual for the year exceeds,

           (i)  $5,370 if the year ends before January 1, 2010, or

          (ii)  $5,127 if the year ends after December 31, 2009.

   5.  (1)  Paragraph 4 of subsection 23 (1) of the Act is repealed and the following substituted:

    4.  Subclauses 16 (1) (a) (ii) and (b) (ii).

   (2)  Subsection 23 (1) of the Act is amended by adding the following paragraphs:

    6.  Subsection 101.1 (3).

    7.  Subsection 101.2 (3).

    8.  Subsection 104.11 (5).

   (3)  Section 23 of the Act is amended by adding the following subsection:

Exception

   (1.1)  Subsection (1) does not apply to an amount in a provision listed in any of paragraphs 4, 6, 7 and 8 of subsection (1) for the 2010 taxation year.

   6.  Subsection 29 (2) of the Act is repealed and the following substituted:

Basic rate of tax

   (2)  A corporation's basic rate of tax for a taxation year is the sum of,

  (a)  14 per cent multiplied by the ratio of the number of days in the taxation year that are before July 1, 2010 to the total number of days in the taxation year;

  (b)  12 per cent multiplied by the ratio of the number of days in the taxation year that are after June 30, 2010 and before July 1, 2011 to the total number of days in the taxation year;

   (c)  11.5 per cent multiplied by the ratio of the number of days in the taxation year that are after June 30, 2011 and before July 1, 2012 to the total number of days in the taxation year;

  (d)  11 per cent multiplied by the ratio of the number of days in the taxation year that are after June 30, 2012 and before July 1, 2013 to the total number of days in the taxation year; and

  (e)  10 per cent multiplied by the ratio of the number of days in the taxation year that are after June 30, 2013 to the total number of days in the taxation year.

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

Small business deduction rate

   (4)  A corporation's small business deduction rate for a taxation year is the sum of,

  (a)  8.5 per cent multiplied by the ratio of the number of days in the taxation year that are before July 1, 2010 to the total number of days in the taxation year;

  (b)  7.5 per cent multiplied by the ratio of the number of days in the taxation year that are after June 30, 2010 and before July 1, 2011 to the total number of days in the taxation year;

   (c)  7 per cent multiplied by the ratio of the number of days in the taxation year that are after June 30, 2011 and before July 1, 2012 to the total number of days in the taxation year;

  (d)  6.5 per cent multiplied by the ratio of the number of days in the taxation year that are after June 30, 2012 and before July 1, 2013 to the total number of days in the taxation year; and

  (e)  5.5 per cent multiplied by the ratio of the number of days in the taxation year that are after June 30, 2013 to the total number of days in the taxation year.

   8.  Subsection 32 (3) of the Act is repealed and the following substituted:

Small business surtax rate

   (3)  A corporation's small business surtax rate for a taxation year is 4.25 per cent multiplied by the ratio of the number of days in the taxation year before July 1, 2010 to the total number of days in the taxation year.

   9.  Subsection 33 (1) of the Act is repealed and the following substituted:

Tax credit for manufacturing, processing, etc.

   (1)  A corporation may, in computing the amount of its tax payable under this Division for a taxation year ending before July 1, 2013, deduct a tax credit calculated using the formula,

A × B × X

in which,

  "A"  is the amount of the corporation's tax credit base for the year,

  "B"  is the corporation's Ontario domestic factor for the year, and

  "X"  is the sum of,

         (a)  0.02 multiplied by the ratio of the number of days in the taxation year that are before July 1, 2011 to the total number of days in the taxation year,

         (b)  0.015 multiplied by the ratio of the number of days in the taxation year that are after June 30, 2011 and before July 1, 2012  to the total number of days in the taxation year, and

          (c)  0.01 multiplied by the ratio of the number of days in the taxation year that are after June 30, 2012 and before July 1, 2013.

   10.  The definition of "C" in the definition of "A" in subsection 50 (2) of the Act is amended by striking out "without reference to section 39, subsection 47 (3) and section 53" at the end and substituting "without reference to section 39, subsection 47 (3), and sections 53 and 53.2".

   11.  The definition of "D" in subsection 53.1 (4) of the Act is amended by striking out "deducted under this section" and substituting "deducted under section 53.2".

   12.  Subsection 55 (1) of the Act is repealed and the following substituted:

Corporate minimum tax liability, taxation years ending before July 1, 2010

   (1)  For a taxation year that ends before July 1, 2010, and except as otherwise provided under subsection (2), every corporation subject to tax under Division B of this Part is liable to pay to the Crown in right of Ontario a corporate minimum tax for the year as determined under this Division if,

  (a)  the amount of the corporation's total assets at the end of the year exceeds $5 million or the amount of the corporation's total revenue for the year exceeds $10 million; or

  (b)  the corporation is associated with one or more corporations during the year and,

           (i)  the sum of the total assets of the corporation as of the end of the taxation year and of each associated corporation as of the end of the associated corporation's last taxation year ending in the corporation's taxation year exceeds $5 million, or

          (ii)  the sum of the total revenue of the corporation for the taxation year and of each associated corporation for the last taxation year of the associated corporation ending in the corporation's taxation year exceeds $10 million.

Same, taxation years ending after June 30, 2010

   (1.1)  For a taxation year that ends after June 30, 2010, and except as otherwise provided under subsection (2), every corporation subject to tax under Division B of this Part is liable to pay to the Crown in right of Ontario a corporate minimum tax for the year as determined under this Division if,

  (a)  the amount of the corporation's total assets at the end of the year equals or exceeds $50 million and the amount of the corporation's total revenue for the year equals or exceeds $100 million; or

  (b)  the corporation is associated with one or more corporations during the year and,

           (i)  the sum of the total assets of the corporation as of the end of the taxation year and of each associated corporation as of the end of the associated corporation's last taxation year ending in the corporation's taxation year equals or exceeds $50 million, and

          (ii)  the sum of the total revenue of the corporation for the taxation year and of each associated corporation for the last taxation year of the associated corporation ending in the corporation's taxation year equals or exceeds $100 million.

   13.  Subsection 56 (1) of the Act is repealed and the following substituted:

Calculation of corporate minimum tax

   (1)  The corporate minimum tax payable by a corporation for a taxation year under this Division is the amount calculated using the formula,

(I – L) × A × R

in which,

    "I"  is the amount of the corporation's adjusted net income, if any, for the year,

  "L"  is the amount of the corporation's eligible losses, if any, for the year,

  "A"  is the corporation's Ontario allocation factor for the year, and

  "R"  is the sum of,

         (a)  0.04 multiplied by the ratio of the number of days in the year that are before July 1, 2010 to the total number of days in the year, and

         (b)  0.027 multiplied by the ratio of the number of days in the year that are after June 30, 2010 to the total number of days in the year.

   14.  Subsection 84 (1) of the Act is amended by adding the following paragraph:

12.1 An Ontario property tax credit under section 101.1 or 101.2.

   15.  (1)  Subsections 89 (2), (3), (4) and (5) of the Act are repealed and the following substituted:

Amount of tax credit

   (2)  The amount of a taxpayer's apprenticeship training tax credit for a taxation year is the total of all amounts each of which is in respect of a qualifying apprenticeship for the year and each of which is the sum of "A" and "B" where,

  "A"  is the lesser of,

         (a)  the sum of,

                   (i)  the product obtained by multiplying the taxpayer's specified percentage for the taxation year in respect of eligible expenditures incurred before March 27, 2009 by the taxpayer's eligible expenditures incurred during the year and before March 27, 2009 in respect of the qualifying apprenticeship, and

                  (ii)  the product obtained by multiplying the taxpayer's specified percentage for the taxation year in respect of eligible expenditures incurred after March 26, 2009 by the taxpayer's eligible expenditures incurred during the year and after March 26, 2009 in respect of the qualifying apprenticeship, and

         (b)  the amount calculated under subsection (3), and

  "B"  is an amount calculated by multiplying the amount of government assistance repaid by the taxpayer in the year by the percentage determined under subsection (3.1), to the extent that the repayment does not exceed the amount of the government assistance in respect of the qualifying apprenticeship that,

         (a)  has not been repaid in a previous year, and

         (b)  may reasonably be considered to have reduced the amount in respect of an apprenticeship training tax credit that would otherwise have been allowed to the taxpayer under this Act, the Corporations Tax Act or the Income Tax Act in respect of the qualifying apprenticeship.

Specified percentage, eligible expenditures incurred before March 27, 2009

   (2.1)  For the purposes of subclause (a) (i) of the definition of "A" in subsection (2), a taxpayer's specified percentage for the taxation year in respect of eligible expenditures incurred before March 27, 2009 is the following:

    1.  25 per cent if the total of all salaries or wages paid by the taxpayer in the previous taxation year is $600,000 or more.

    2.  The percentage determined by adding 25 per cent and the percentage calculated using the following formula, if the total of all salaries or wages paid by the taxpayer in the previous taxation year is greater than $400,000 but less than $600,000:

0.05 × [1 – (AA/200,000)]

in which,

      "AA"  is the total amount of salaries or wages paid by the taxpayer in the previous taxation year that is in excess of $400,000.

    3.  30 per cent in any other case.

Specified percentage, eligible expenditures incurred after March 26, 2009

   (2.2)  For the purposes of subclause (a) (ii) of the definition of "A" in subsection (2), a taxpayer's specified percentage for the taxation year in respect of eligible expenditures incurred after March 26, 2009 is the following:

    1.  35 per cent if the total of all salaries or wages paid by the taxpayer in the previous taxation year is $600,000 or more.

    2.  The percentage determined by adding 35 per cent and the percentage calculated using the following formula, if the total of all salaries or wages paid by the taxpayer in the previous taxation year is greater than $400,000 but less than $600,000:

0.10 × [1 – (BB/200,000)]

in which,

      "BB"  is the total amount of salaries or wages paid by the taxpayer in the previous taxation year that is in excess of $400,000.

    3.  45 per cent in any other case.

Amount

   (3)  For the purposes of clause (b) of the definition of "A" in subsection (2), the amount is calculated using the formula,

($5,000 × C/Y) + ($10,000 × D/Y)

in which,

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

         (a)  before March 27, 2009, and

         (b)  within the first 36 months of the commencement of the apprentice in the apprenticeship program,

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

         (a)  after March 26, 2009, and

         (b)  within the first 48 months of the commencement of the apprentice in the apprenticeship program, and

  "Y"  is 365 days or, if the taxation year includes February 29, 366 days.

Same

   (3.1)  For the purposes of determining the amount of "B" in subsection (2),

  (a)  if the government assistance was received in respect of eligible expenditures incurred before March 27, 2009, the percentage is the specified percentage that would be determined under subsection (2.1) for the taxation year in which the government assistance was received; and

  (b)  if the government assistance was received in respect of eligible expenditures incurred after March 26, 2009, the percentage is the specified percentage that would be determined under subsection (2.2) for the taxation year in which the government assistance was received.

   (2)  Subsection 89 (6) of the Act is amended by striking out "subsections (4) and (5)" and substituting "subsections (2.1) and (2.2)".

   (3)  Paragraph 1 of subsection 89 (7) of the Act is repealed.

   (4)  Subparagraphs 1 iii and iv of subsection 89 (9) of the Act are repealed and the following substituted:

          iii.  the amount is incurred before March 27, 2009 and relates to services provided by the apprentice to the taxpayer during the first 36 months of the apprenticeship program and does not relate to services performed before the commencement or after the end of the apprenticeship program, and

          iv.  the amount is incurred after March 26, 2009 and relates to services provided by the apprentice to the taxpayer during the first 48 months of the apprenticeship program and does not relate to services performed before the commencement or after the end of the apprenticeship program.

   (5)  Subparagraph 2 ii of subsection 89 (9) of the Act is amended by striking out "before January 1, 2015, and".

   (6)  Subparagraph 2 iii of subsection 89 (9) of the Act is repealed and the following substituted:

          iii.  the fee is incurred before March 27, 2009 and the fee relates to services provided by the apprentice to the taxpayer during the first 36 months of the apprenticeship program and does not relate to services performed before the commencement or after the end of the apprenticeship program, and

          iv.  the fee is incurred after March 26, 2009 and the fee relates to services provided by the apprentice to the taxpayer during the first 48 months of the apprenticeship program and does not relate to services performed before the commencement or after the end of the apprenticeship program.

   (7)  Clause 89 (14) (a) of the Act is amended by striking out "the definition of "C" in subsection (3)" and substituting "the definitions of "C" and "D" in subsection (3)".

   16.  (1)  The definition of "film studio" in subsection 91 (19) of the Act is repealed and the following substituted:

"film studio" means,

  (a)  a building in which sets are used for the purpose of making film or television productions and sound, light and human access are controlled, or

  (b)  a building in which activities are carried out directly in support of animation if the production is an animated production or contains animated segments; ("studio")

   (2)  Subsection 91 (19) of the Act is amended by adding the following definition:

"principal photography" includes key animation if the film or television production is an animated production or contains animated segments; ("principaux travaux de prise de vues")

   (3)  The definition of "regional Ontario production" in subsection 91 (19) of the Act is amended by striking out "or" at the end of clause (a) and by repealing clause (b) and substituting the following:

  (b)  for which the principal photography in Ontario is done in whole or in part outside a film studio, but only if,

           (i)  the number of location days in the Greater Toronto Area for the production does not exceed 15 per cent of the total number of location days in respect of the production, and

          (ii)  the number of location days for the production is at least five or, in the case of a production that is a television series, is at least equal to the number of episodes in the production, or

   (c)  for which the principal photography in Ontario consists entirely of animation, but only if no more than 15 per cent of the principal photography in Ontario is done in the Greater Toronto Area. ("production régionale ontarienne")

   (4)  The definition of "Toronto location day" in subsection 91 (19) of the Act is repealed.

   17.  (1)  Subsection 92 (3) of the Act is amended by striking out "and" at the end of clause (a) and by repealing clause (b) and substituting the following:

  (b)  25 per cent of the portion of its qualifying Ontario labour expenditure in respect of the production for the year that relates to expenditures incurred after December 31, 2007 and before July 1, 2009; and

   (c)  25 per cent of the portion of its qualifying production expenditure in respect of the production for the year that relates to expenditures incurred after June 30, 2009.

   (2)  Subsection 92 (4) of the Act is repealed and the following substituted:

Exception, prescribed tax credit rate

   (4)  If a percentage is prescribed for the purposes of clause (3) (b) or (c), the prescribed percentage and not the percentage set out in that clause shall apply in determining an amount under that clause in respect of the period to which the prescribed percentage applies.

   (3)  Section 92 of the Act is amended by adding the following subsections:

Qualifying production expenditure

   (5.1)  For the purposes of this section, a corporation's qualifying production expenditure for a taxation year in respect of an eligible production is the amount, if any, by which "A" exceeds "B" where,

  "A"  is the sum of,

         (a)  the corporation's eligible wage expenditure for the year or a previous taxation year in respect of the production,

         (b)  the corporation's eligible service contract expenditure for the year or a previous taxation year in respect of the production,

          (c)  the amount determined under subsection (5.5) for the year or a previous taxation year in respect of the production, and

         (d)  the corporation's eligible tangible property expenditure for the year or a previous taxation year in respect of the production, and

  "B"  is the sum of,

         (a)  all relevant assistance in respect of the production,

                   (i)  that may reasonably be considered to be directly attributable to any amount included in the determination of "A" for the year,

                  (ii)  that, when it was required to file its return under this Act for the year, the corporation or any other person or partnership had received, was entitled to receive or was reasonably expected to receive, to the extent the assistance had not been repaid pursuant to a legal obligation to do so, and

                 (iii)  that has not caused a reduction of any amount included in the determination of "A" for the year in respect of the production,

  (b)  the sum of all amounts, each of which is the corporation's qualifying production expenditure in respect of the production for a previous taxation year before the end of which the principal photography of the production began, and

   (c)  if the corporation is a parent, the sum of all amounts each of which is determined in respect of the production under subsection (5.5) as a consequence of an agreement referred to in that subsection between the corporation and the subsidiary corporation.

Eligible wage expenditure

   (5.2)  For the purposes of this section and subject to subsection (5.8), a qualifying corporation's eligible wage expenditure for a taxation year in respect of an eligible production is an amount equal to the salary and wages that are,

  (a)  reasonable in the circumstances;

  (b)  directly attributable to the production;

   (c)  incurred by the corporation in the year or the previous taxation year;

  (d)  related to services rendered in Ontario for the stages of production of the production from the final script stage to the end of the post-production stage; and

  (e)  paid by it in the year or within 60 days after the end of the year to the corporation's employees who were Ontario-based individuals at the time the payments were made (other than amounts incurred in the previous year that were paid within 60 days after the end of the previous year).

Eligible service contract expenditure

   (5.3)  For the purposes of this section and subject to subsection (5.8), a qualifying corporation's eligible service contract expenditure for a taxation year in respect of an eligible production is the total of all amounts each of which is the cost of a contract for services that is,

  (a)  reasonable in the circumstances;

  (b)  directly attributable to the production;

   (c)  incurred by the corporation in the year or the previous taxation year;

  (d)  related to services rendered in Ontario in the year or the previous year to the corporation for the stages of production of the production, from the final script stage to the end of the post-production stage;

  (e)  paid by it in the year or within 60 days after the end of the year (other than amounts incurred in the previous taxation year that were paid within 60 days after the end of the previous year); and

    (f)  paid to a person or partnership that carries on a business in Ontario through a permanent establishment and that is,

           (i)  an Ontario-based individual at the time the amount is paid and who is not an employee of the corporation, provided the services are personally rendered in Ontario in respect of the production by the individual or the individual's employees at a time when they were Ontario-based individuals,

          (ii)  another corporation that is a taxable Canadian corporation, provided the services are personally rendered in Ontario in respect of the production by the other corporation's employees at a time when they were Ontario-based individuals,

         (iii)  another corporation that is a taxable Canadian corporation, all the issued and outstanding shares of the capital stock of which (except directors' qualifying shares) belong to an Ontario-based individual and the activities of which consist principally of the provision of the individual's services, or

         (iv)  a partnership, each member of which is an Ontario-based individual or a taxable Canadian corporation, provided the services are personally rendered in Ontario in respect of the production by an Ontario-based individual who is a member of the partnership or by the partnership's employees at a time when they were Ontario-based individuals.

Same, security services provided by off-duty police officers

   (5.4)  Subject to clauses (5.3) (a) to (e) and subsection (5.8), an amount paid in a taxation year or a previous taxation year in respect of an eligible production to a trade union representing members of the Ontario Provincial Police Force or a municipal police force in Ontario for the provision of security services on the set of the production may be included in a corporation's eligible service contract expenditure for the taxation year in respect of the production.

Parent-subsidiary amounts

   (5.5)  If the corporation has a parent that is a taxable Canadian corporation and if the corporation and the parent have agreed that paragraph (c) of the definition "Canadian labour expenditure" in subsection 125.5 (1) of the Federal Act applies in respect of the production, the amount determined under this subsection is equal to the reimbursement made by the corporation in the year, or within 60 days after the end of the year (other than amounts incurred by the parent in the previous year that were reimbursed by the corporation within 60 days after the end of the previous year), of an amount that was incurred by the parent in a particular taxation year of the parent in respect of the production, if the amount would be included in the corporation's eligible wage expenditure or eligible service contract expenditure in respect of the production for the particular taxation year if the corporation had had that particular taxation year and the expenditure had been incurred by the corporation for the same purpose as it was incurred by the parent and paid at the same time and to the same person or partnership as it was paid by the parent.

Eligible tangible property expenditure

   (5.6)  For the purposes of this section and subject to subsections (5.7) and (5.8), a qualifying corporation's eligible tangible property expenditure for a taxation year in respect of an eligible production is the sum of the amounts described in the following paragraphs:

    1.  If tangible property is acquired by the corporation, the total of all amounts each of which is an amount calculated in respect of a particular tangible property using the formula,

(A × B × C)/365

in which,

         "A"  is the undepreciated capital cost of the property at the beginning of the year or, where the property was acquired in the year, the cost of the property,

         "B"  is the rate applicable to the property under Schedule II of the Federal regulations, and

         "C"  is the number of days in the taxation year that the tangible property was available for immediate use in respect of the eligible production in Ontario.

    2.  If tangible property is leased by the corporation, the total of all amounts each of which is the proportion of the lease cost attributable to the use in Ontario of the property in the taxation year in the course of completing the eligible production. 

Same

   (5.7)  An expenditure is not included in the eligible tangible property expenditure of a qualifying corporation for a taxation year with respect to an eligible production unless all of the following conditions are satisfied:

    1.  The property is used in Ontario in a manner that is directly attributable to the eligible production.

    2.  The property is used during the stages of production of the production, from the final script stage to the end of the post-production stage.

    3.  The expenditure is incurred by the corporation in the year or the previous taxation year.

    4.  The expenditure is paid by the corporation in the year or within 60 days after the end of the year (other than amounts incurred in the previous taxation year that were paid within 60 days after the end of the previous year).

    5.  The expenditure is reasonable in the circumstances.

    6.  The expenditure is paid to a person or partnership,

            i.  that is ordinarily engaged in the business of selling or leasing tangible property of the type of tangible property acquired or leased by the corporation,

           ii.  that carries on business through a permanent establishment in Ontario,

          iii.  that is a taxable Canadian corporation or an Ontario-based individual at the time the amount is paid or a partnership comprised entirely of members that are taxable Canadian corporations or Ontario-based individuals at the time the amount is paid,

          iv.  in the case of an individual, who is not an employee of the qualifying corporation, and

           v.  in the case of a partnership, whose members are not employees of the qualifying corporation.

Same

   (5.8)  A corporation's qualifying production expenditure in respect of an eligible production does not include expenditures incurred for or on account of,

  (a)  meals and entertainment (other than reasonable expenditures for food and non-alcoholic beverages provided to individuals working on an eligible production at a studio or location set on a day filming is taking place);

  (b)  alcoholic beverages;

   (c)  hotel and living expenses;

  (d)  remuneration determined by reference to profits or revenues;

  (e)  an amount to which section 37 of the Federal Act applies; or

    (f)  for greater certainty, an amount that is not a production cost (including an amount in respect of advertising, marketing, promotion, market research) or an amount related in any way to another film or video production.

   (4)  Subsection 92 (13) of the Act is amended by adding the following definitions:

"Ontario-based individual" means, in relation to an eligible production, an individual who was resident in Ontario at the end of the calendar year immediately before the calendar year in which principal photography for the production commences; ("particulier domicilié en Ontario")

"parent" means a corporation that owns all the issued and outstanding shares of the capital stock (except directors' qualifying shares) of another corporation; ("société mère")

"relevant assistance" means an amount that satisfies the prescribed conditions; ("aide pertinente")

"tangible property" means property that can be seen, weighed, measured, felt or touched or that is in any way perceptible to the senses, and is deemed to include software. ("bien corporel")

   (5)  Section 92 of the Act is amended by adding the following subsection:

Inflation of tax credit claim

   (14)  Despite any other provision in this section, if a qualifying corporation has incurred expenditures that are included in its qualifying production expenditure for the year in respect of an eligible production pursuant to a contract with a person or partnership with which the corporation does not deal at arm's length, and the Ontario Minister reasonably believes that one of the principal purposes of the existence of the contract was to increase the amount of the corporation's tax credit under this section, the amount of the tax credit will be reduced by the amount of the increase.

   18.  (1)  Subsections 93 (1), (2), (3) and (4) of the Act are repealed and the following substituted:

Ontario interactive digital media tax credit

   (1)  A corporation that complies with the requirements of this section or section 93.1 or 93.2 may claim an amount for the year in respect of and not exceeding the corporation's Ontario interactive digital media tax credit for the year.

Total amount of tax credit under this section and ss. 93.1 and 93.2

   (1.1)  The amount of a corporation's Ontario interactive digital media tax credit for a taxation year is the sum of the credits determined under this section and sections 93.1 and 93.2 for the year.

Amount of tax credit under this section

   (2)  Subject to subsections (2.4) to (2.6), the amount of a qualifying corporation's credit under this section for a taxation year is the sum of the corporation's eligible credits for the year as determined under this section in respect of eligible products.

Non-specified products, other than qualifying small corporations

   (2.1)  A qualifying corporation's eligible credit for a taxation year in respect of an eligible product that is not a specified product is, if the corporation is not a qualifying small corporation, the sum of,

  (a)  20 per cent of the portion of its qualifying expenditure in respect of the product for the year that relates to expenditures incurred after March 23, 2006 and before March 26, 2008;

  (b)  25 per cent of the portion of its qualifying expenditure in respect of the product for the year that relates to expenditures incurred after March 25, 2008 and before March 27, 2009; and

   (c)  40 per cent of the portion of its qualifying expenditure in respect of the product for the year that relates to expenditures incurred after March 26, 2009.

Non-specified products, qualifying small corporations

   (2.2)  A qualifying corporation's eligible credit for a taxation year in respect of an eligible product that is not a specified product is, if the corporation is a qualifying small corporation, the sum of,

  (a)  20 per cent of the portion of its qualifying expenditure in respect of the product for the year that relates to expenditures incurred before March 24, 2006;

  (b)  30 per cent of the portion of its qualifying expenditure in respect of the product for the year that relates to expenditures incurred after March 23, 2006 and before March 27, 2009; and

   (c)  40 per cent of the portion of its qualifying expenditure in respect of the product for the year that relates to expenditures incurred after March 26, 2009.

Specified products

   (2.3)  A qualifying corporation's eligible credit for a taxation year in respect of an eligible product that is a specified product is the sum of,

  (a)  20 per cent of the portion of its qualifying expenditure in respect of the product for the year that relates to expenditures incurred after March 23, 2006 and before March 26, 2008;

  (b)  25 per cent of the portion of its qualifying expenditure in respect of the product for the year that relates to expenditures incurred after March 25, 2008 and before March 27, 2009; and

   (c)  35 per cent of the portion of its qualifying expenditure in respect of the product for the year that relates to expenditures incurred after March 26, 2009.

Claims not allowed under subs. (2.3) and s. 93.1

   (2.4)  A qualifying corporation's eligible credit under subsection (2.3) in respect of an eligible product is deemed to be nil for a particular taxation year if the corporation claims a credit under section 93.1 in respect of the eligible product for the year or any previous taxation year.

Claims not allowed under this section and s. 93.2

   (2.5)  Subject to subsection (2.6), a qualifying corporation's credit under this section in respect of an eligible product for a particular taxation year is deemed to be nil if the corporation claims a credit under section 93.2 in respect of the eligible product for the year.

Exception, transition to s. 93.2

   (2.6)  Subsection (2.5) does not apply in respect of a qualifying corporation for a particular taxation year if the corporation completes an eligible product in the year and the Ontario labour expenditure incurred in respect of the product includes expenditures that were incurred before the later of March 27, 2009 and the beginning of the first taxation year in which the corporation claimed a credit under section 93.2.

Qualifying expenditure

   (3)  The qualifying expenditure of a qualifying corporation for a taxation year is,

  (a)  in respect of an eligible product that is not a specified product, the amount of its eligible labour expenditure and eligible marketing and distribution expenditure for the year in respect of the product; and 

  (b)  in respect of an eligible product that is a specified product, the amount of its eligible labour expenditure for the year in respect of the product.

Eligible labour expenditure

   (4)  A qualifying corporation's eligible labour expenditure for an eligible product for a taxation year is equal to the amount, if any, by which the sum of "A" and "B" exceeds "C" where,

  "A"  is the Ontario labour expenditure, if any, incurred by the qualifying corporation in the year for the eligible product,

  "B"  is the sum of all amounts, if any, each of which is the Ontario labour expenditure incurred for the eligible product by the qualifying corporation in a previous taxation year or by a qualifying predecessor corporation before the disposition, merger or wind-up, as the case may be, to the extent that,

         (a)  if development of the product is completed before March 26, 2008, the expenditure is incurred in the 25-month period ending at the end of the month in which development of the eligible product is completed, or

         (b)  if development of the product is completed after March 25, 2008, the expenditure is incurred in the 37-month period ending at the end of the month in which development of the eligible product is completed, and

  "C"  is the sum of "D", "E" and "F" where,

         "D"  is the total of all amounts, if any, each of which is the eligible labour expenditure for the eligible product that was included in the determination of the amount of a tax credit claimed under this section, section 93.2 or section 43.11 of the Corporations Tax Act for a previous taxation year by the qualifying corporation or by a qualifying predecessor corporation,

         "E"  is the total of all amounts, if any, each of which is the eligible labour expenditure for the eligible product that was included in the determination of the amount of a credit claimed under section 93.2 for the year by the qualifying corporation, and

         "F"  is the total of all government assistance, if any, in respect of the Ontario labour expenditure for the eligible product that, on the qualifying corporation's filing-due date for the taxation year, the qualifying corporation or any other person or partnership has received, is entitled to receive or may reasonably expect to receive, to the extent that the government assistance has not been included in determining a corporation's eligible labour expenditures under section 93.2 or been repaid under a legal obligation to do so.

   (2)  The definition of "qualifying small corporation" in subsection 93 (14) of the Act is repealed and the following substituted:

"qualifying small corporation", in respect of a taxation year, means a qualifying corporation where,

  (a)  the amount of the corporation's total assets at the end of the year is equal to or less than $10 million and the amount of the corporation's total revenue for the year is equal to or less than $20 million; or

  (b)  the corporation is associated with one or more corporations during the year and,

           (i)  the sum of the total assets of the corporation as of the end of the taxation year and of each associated corporation as of the end of the associated corporation's last taxation year ending in the corporation's taxation year is equal to or less than $10 million, and

          (ii)  the sum of the total revenue of the corporation for the taxation year and of each associated corporation for the last taxation year of the associated corporation ending in the corporation's taxation year is equal to or less than $20 million. ("petite société admissible")

   (3)  Section 93 of the Act is amended by adding the following subsection:

Application of s. 55 (2)

   (19)  Paragraphs 1 to 6 of subsection 55 (2) apply for the purposes of determining if a qualifying corporation is a qualifying small corporation for the purposes of this section.

   19.  The Act is amended by adding the following sections:

Qualifying digital game corporation's tax credit

   93.1  (1)  The amount of a qualifying digital game corporation's tax credit under this section for a taxation year for the purposes of subsection 93 (1.1) is the total of all amounts each of which is the corporation's eligible credit for the year in respect of an eligible digital game.

Eligible credit, eligible digital games

   (2)  A qualifying digital game corporation's eligible credit for a taxation year in respect of an eligible digital game is 35 per cent of its qualifying labour expenditure in respect of the digital game for the year that relates to expenditures incurred after March 26, 2009.

Claims not allowed under s. 93 (2.3) and this section

   (3)  A qualifying digital game corporation's eligible credit under subsection (2) in respect of an eligible digital game is deemed to be nil for a particular taxation year if the corporation claims a credit under subsection 93 (2.3) in respect of the digital game for any previous taxation year.

Claims not allowed under this section and s. 93.2

   (4)  Subject to subsection (5), a qualifying digital game corporation cannot claim a credit under this section for a particular taxation year in respect of an eligible digital game if the corporation has claimed a credit under section 93.2 in respect of the digital game for the year.

Exception, transition to s. 93.2

   (5)  Subsection (4) does not apply if a qualifying digital game corporation claims a credit under section 93.2 in a taxation year, the 36-month period selected by the corporation for the purposes of paragraph 5 of subsection (9) ends in the year and the Ontario labour expenditure incurred in respect of the digital game includes expenditures that were incurred before the later of March 27, 2009 and the beginning of the first taxation year in which the corporation claimed a credit under section 93.2.

Qualifying labour expenditure

   (6)  The qualifying labour expenditure of a qualifying digital game corporation in respect of an eligible digital game for a taxation year is equal to the amount, if any, by which the sum of "A" and "B" exceeds "C" where,

  "A"  is the Ontario labour expenditure, if any, incurred by the qualifying digital game corporation in the year for the eligible digital game, to the extent that the expenditure is incurred in the 36-month period selected by the corporation for the purposes of paragraph 5 of subsection (9),

  "B"  the sum of all amounts, if any, each of which is the Ontario labour expenditure incurred for the eligible digital game by the qualifying digital game corporation in a previous taxation year or by a qualifying predecessor corporation before the merger or wind-up, as the case may be, to the extent that the expenditure is incurred in the 36-month period selected by the corporation for the purposes of paragraph 5 of subsection (9),

  "C"  is the sum of "D", "E" and "F" where,

         "D"  is the total of all amounts, if any, each of which is the eligible labour expenditure for the eligible digital game that was included in the determination of the amount of a tax credit claimed under section 93.2 for a previous taxation year by the qualifying digital game corporation, determined in accordance with the rules prescribed by regulation in respect of a digital game that is an eligible digital game for the purposes of section 93.2, and

         "E"  is the total of all amounts, if any, each of which is the eligible labour expenditure for the eligible digital game that was included in the determination of the amount of a credit claimed under section 93.2 for the year by the qualifying digital game corporation, and

         "F"  is the total of all government assistance, if any, in respect of the Ontario labour expenditure for the eligible digital game that, on the qualifying digital game corporation's filing-due date for the taxation year, the qualifying digital game corporation or any other person or partnership has received, is entitled to receive or may reasonably expect to receive, to the extent that the government assistance has not been included in determining a corporation's eligible labour expenditures under section 93.2 or repaid under a legal obligation to do so.

Application for certificate

   (7)  Subsections 93 (8) to (13) apply for the purposes of this section, subject to any prescribed modifications, as if,

  (a)  each reference in those provisions to "this section" were read as a reference to this section;

  (b)  each reference in those provisions to a "qualifying corporation" were read as a reference to a "qualifying digital game corporation"; and

   (c)  each reference in those provisions to an "eligible product" were read as a reference to "eligible digital game".

Definitions

   (8)  In this section,

"eligible digital game" means a product in respect of a qualifying digital game corporation that satisfies all of the conditions set out in subsection (9); ("jeu numérique admissible")

"government assistance" means assistance from a government, municipality or other public authority in any form, including a grant, subsidy, forgivable loan, deduction from tax and investment allowance, but not including a tax credit under subsection 93 (1); ("aide gouvernementale")

"Ontario labour expenditure" means the amount determined under the prescribed rules; ("dépense de main-d'oeuvre en Ontario")

"qualifying digital game corporation" means a Canadian corporation,

  (a)  that carries on through a permanent establishment in Ontario a business that includes the development of digital games,

  (b)  that is not controlled directly or indirectly in any manner by one or more corporations all or part of whose taxable income is exempt from tax under Part III of this Act,

   (c)  that is not a prescribed labour-sponsored venture capital corporation under the Federal regulations, and

  (d)  that is not a taxable Canadian corporation the primary activity of which is to provide the services of a single individual and all the issued and outstanding shares of the capital stock of which (other than directors' qualifying shares) are owned by that individual; ("société de jeux numériques admissible")

"qualifying predecessor corporation" means, in respect of a qualifying digital game corporation (the "transferee"), a corporation that was a qualifying digital game corporation in respect of an eligible digital game and that,

  (a)  merges with one or more corporations in accordance with section 87 of the Federal Act to form the transferee, or

  (b)  is wound up in accordance with subsection 88 (1) of the Federal Act. ("société remplacée admissible")

Eligible digital game

   (9)  The following are the conditions referred to in the definition of "eligible digital game" in subsection (8):

    1.  The product is an interactive digital media product as determined under the prescribed rules.

    2.  The product is a digital game in the opinion of the Ontario Media Development Corporation or, if another person is designated by the Minister of Culture, in the opinion of that person.

    3.  The product is developed in whole or in part by the qualifying digital game corporation under the terms of an agreement between the qualifying digital game corporation and a purchaser that is a corporation.

    4.  The product is developed for the purpose of sale or license by the purchaser to one or more persons, each of whom deals at arm's length with the purchaser.

    5.  The qualifying labour expenditure incurred by the qualifying digital game corporation within any period of 36 months that ends in the taxation year is not less than $1,000,000.

    6.  The qualifying digital game corporation or a qualifying predecessor corporation has not previously claimed a tax credit under this section in respect of the eligible digital game.

    7.  The product is not used primarily,

            i.  for interpersonal communication,

           ii.  to present or promote the qualifying digital game corporation, a qualifying predecessor corporation or the purchaser, or

          iii.  to present, promote or sell the products or services of the qualifying digital game corporation, a qualifying predecessor corporation or the purchaser.

    8.  The product is one for which public financial support would not be contrary to public policy in the opinion of the Ontario Media Development Corporation or, if another person is designated for the purposes of subsection 93 (8), as it applies for the purposes of this section, in the opinion of that person.

Specialized digital game corporation's credit

   93.2  (1)  The amount of a specialized digital game corporation's credit under this section for a taxation year for the purposes of subsection 93 (1.1) is 35 per cent of the corporation's qualifying labour expenditure in respect of eligible digital games for the year that relates to expenditures incurred after March 26, 2009.

Qualifying labour expenditure

   (2)  The qualifying labour expenditure of a specialized digital game corporation in respect of eligible digital games for a taxation year is the total of all amounts each of which is the eligible labour expenditure of the corporation in respect of an eligible digital game for the year.

Eligible labour expenditure

   (3)  The eligible labour expenditure of a specialized digital game corporation in respect of an eligible digital game for a taxation year is the amount, if any, by which "A" exceeds "B" where,

  "A"  is the corporation's Ontario labour expenditure for the year for eligible digital game activities in respect of the eligible digital game, and

  "B"  is the total of all government assistance, if any, in respect of the Ontario labour expenditure for eligible digital game activities in respect of the eligible digital game that, on the specialized digital game corporation's filing-due date for the year, the specialized digital game corporation or any other person or partnership has received, is entitled to receive or may reasonably expect to receive, to the extent that the government assistance has not been repaid under a legal obligation to do so.

Application for certificate

   (4)  In order to be eligible to claim a credit under this section for a taxation year, a specialized digital game corporation shall apply to the Ontario Media Development Corporation or a person designated by the Minister of Culture for certification for the year for the purposes of this section.

Same

   (5)  A specialized digital game corporation that applies for certification under subsection (4) shall provide the information specified for the purposes of this section by the Ontario Media Development Corporation or a person designated by the Minister of Culture to the person who specified that it be provided.

Certificate

   (6)  If a specialized digital game corporation provides the information in accordance with subsection (5) for a taxation year, the Ontario Media Development Corporation or a person designated by the Minister of Culture shall issue a certificate, and any amended certificates it considers appropriate, to the corporation for the year, certifying,

  (a)  that the corporation is a specialized digital game corporation;

  (b)  that the corporation's eligible digital game activities were undertaken in respect of digital games that are eligible digital games or would have been eligible digital games had they been completed before the end of the taxation year; and

   (c)  the estimated amount of the corporation's credit under this section for the year in respect of its eligible digital game activities.

Certificate to be delivered with return

   (7)  In order to claim an amount under this section for a taxation year, a specialized digital game corporation must deliver to the Ontario Minister with its return for the year the certificate for the year or a certified copy of the certificate.

Revocation of certificate

   (8)  A certificate or amended certificate issued under subsection (6) may be revoked,

  (a)  if an omission or incorrect statement was made and it is reasonable to believe that, if the omitted information had been disclosed or if the person issuing the certificate had known that the statement was incorrect, he or she would not have issued the certificate;

  (b)  if none of the activities in respect of which the certificate is issued are eligible digital game activities; or

   (c)  if the corporation to which the certificate is issued is not a specialized digital game corporation.

Same

   (9)  A certificate that is revoked is deemed never to have been issued.

Definitions

   (10)  In this section,

"eligible digital game" means a product in respect of a specialized digital game corporation that satisfies all of the conditions set out in subsection (11); ("jeu numérique admissible")

"eligible digital game activities" means activities that are carried out in Ontario and are directly attributable to the development of an eligible digital game; ("activités admissibles de conception d'un jeu numérique")

"government assistance" means assistance from a government, municipality or other public authority in any form, including a grant, subsidy, forgivable loan, deduction from tax and investment allowance, but not including a tax credit under subsection 93 (1); ("aide gouvernementale")

"Ontario labour expenditure" means the amount determined under the prescribed rules; ("dépense de main-d'oeuvre en Ontario")

"specialized digital game corporation" for a taxation year means a Canadian corporation that satisfies all of the conditions set out in subsection (12). ("société de jeux numériques spécialisée")

Eligible digital game

   (11)  The following are the conditions referred to in the definition of "eligible digital game" in subsection (10):

    1.  The product is an interactive digital media product as determined under the prescribed rules.

    2.  The product is a digital game in the opinion of the Ontario Media Development Corporation or, if another person is designated by the Minister of Culture, in the opinion of that person.

    3.  The product is developed for the purpose of sale or license by the specialized digital game corporation or, if applicable, the purchaser, to one or more persons, each of whom deals at arm's length with the specialized digital game corporation and the purchaser.

    4.  The product is not used primarily,

            i.  for interpersonal communication,

           ii.  to present or promote the specialized digital game corporation or, if applicable, the purchaser, or

          iii.  to present, promote or sell the products or services of the specialized digital game corporation or, if applicable, the purchaser.

    5.  The product is one for which public financial support would not be contrary to public policy in the opinion of the Ontario Media Development Corporation or, if another person is designated for the purposes of subsection 93 (8), as it applies for the purposes of this section, in the opinion of that person.

Specialized digital game corporation

   (12)  The following are the conditions referred to in the definition of "specialized digital game corporation" in subsection (10):

    1.  The corporation carries on through a permanent establishment in Ontario a business that includes the development of digital games.

    2.  The corporation's Ontario labour expenditure for the year in respect of eligible digital games is not less than $1 million.

    3.  The corporation satisfies one of the following conditions:

            i.  the total of the salaries and wages incurred by the corporation in the year for services rendered in Ontario that are directly attributable to the development of digital games is not less than 80 per cent of the total of the salaries and wages incurred by the corporation in the year for services rendered in Ontario,

           ii.  the amount of the corporation's gross revenue for the year that is directly attributable to the development of digital games is not less than 90 per cent of the corporation's total gross revenue for the year, or

          iii.  a condition prescribed for the purposes of this paragraph.

    4.  The corporation is not controlled directly or indirectly in any manner by one or more corporations all or part of whose taxable income is exempt from tax under Part III of this Act.

    5.  The corporation is not a prescribed labour-sponsored venture capital corporation under the Federal regulations.

    6.  The corporation is not a taxable Canadian corporation the primary activity of which is to provide the services of a single individual and all the issued and outstanding shares of the capital stock of which (other than directors' qualifying shares) are owned by that individual.

   20.  (1)  Clauses 95 (15) (e) and (f) of the Act are repealed and the following substituted:

  (e)  the publication date of the literary work is before March 27, 2009 and the corporation publishes the literary work other than as a bound hardback, a paperback or a trade paperback book;

(e.1) the publication date of the literary work is after March 26, 2009 and the corporation publishes the literary work other than as a bound hardback, a paperback or a trade paperback book or as a digital or electronic version of the literary work;

    (f)  the corporation publishes the literary work in an edition of less than 500 copies of a bound book;

   (2)  Subsection 95 (16) of the Act is amended by adding the following paragraphs:

  1.1  Expenditures incurred by the company after March 26, 2009 and in the year in respect of activities that reasonably relate to preparing a literary work for publication in one or more digital or electronic formats, if the activities are carried out primarily in Ontario, including,

            i.  salaries or wages paid to employees involved in editing, design and project management,

           ii.  amounts in respect of fees for freelance editing, design and research,

          iii.  amounts in respect of the cost of art work, developing prototypes and set-up, and

          iv.  salaries, wages, fees or other amounts in respect of related activities, including scanning, editing, formatting, indexing, encryption and establishing digital rights management or other technological protection measures.

.     .     .     .     .

  2.1  One-half of the expenditures incurred by the company after March 26, 2009 and in the year that reasonably relate to transferring a prepared digital or electronic version of the literary work into or onto a form suitable for distribution, if those activities are carried out primarily in Ontario.

   (3)  Section 95 of the Act is amended by adding the following subsection:

Restriction

   (16.1)  An expenditure may not be included under a paragraph of subsection (16) in respect of the publishing of an eligible literary work if the expenditure is also included under another paragraph of that subsection in respect of the publishing of the literary work.

   (4)  The definition of "eligible Canadian author" in subsection 95 (20) of the Act is repealed and the following substituted:

"eligible Canadian author" means, with respect to a literary work, an individual,

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

  (b)  who, if the literary work is published before March 27, 2009, has not written more than two literary works of the same eligible category of writing that have been previously published, other than a literary work published in an anthology containing two or more literary works by different authors; ("auteur canadien admissible")

   21.  Subsection 99 (1) of the Act is amended by striking out "for a taxation year" and substituting "for a taxation year ending before January 1, 2010".

   22.  (1)  Subsection 100 (1) of the Act is amended by striking out "for a taxation year" and substituting "for a taxation year ending before January 1, 2010".

   (2)  The formula set out in subsection 100 (5) of the Act is amended by striking out "$24,300" and substituting "$24,750".

   (3)  The definition of "C" in subsection 100 (5) of the Act is amended by striking out "$24,300" and substituting "$24,750".

   23.  The Act is amended by adding the following sections:

Ontario property tax credit, individual other than a senior

   101.1  (1)  An individual who is a qualifying individual for a taxation year ending after December 31, 2009 may claim an amount for the year in respect of and not exceeding his or her Ontario property tax credit, if any, for the year. 

Qualifying individual

   (2)  An individual is a qualifying individual for a taxation year for the purposes of this section if, on December 31 in the year, the individual,

  (a)  is resident in Ontario;

  (b)  has reached 18 years of age or is a parent who resided with their child or is married or has a common law partner;

   (c)  is not a senior;

  (d)  does not have a qualifying spouse or qualifying common-law partner who is a senior; and

  (e)  has not been confined to a prison or similar institution for a total of more than 180 days during the year.

Amount of tax credit

   (3)  Subject to section 101.3, the amount of a qualifying individual's Ontario property tax credit under this section for a taxation year is the amount, if any, calculated using the formula,

A – [0.02 × (B – C)]

in which,

  "A"  is the least of,

         (a)  $900,

         (b)  the individual's occupancy cost for the year, and

          (c)  the sum of,

                   (i)  the lesser of $250 and the individual's occupancy cost for the year, and

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

  "B"  is,

         (a)  the greater of $20,000 and the individual's adjusted income for the year, if the individual did not have a qualifying spouse or qualifying common-law partner throughout the year, or

         (b)  the greater of $25,000 and the individual's adjusted income for the year, if the individual had a qualifying spouse or qualifying common-law partner at any time in the year, and

  "C"  is,

         (a)  $20,000, if the individual did not have a qualifying spouse or qualifying common-law partner throughout the year, or

         (b)  $25,000, if the individual had a qualifying spouse or qualifying common-law partner at any time in the year.

Ontario property tax credit, seniors

   101.2  (1)  An individual who is a qualifying individual for a taxation year ending after December 31, 2009 may claim an amount for the year in respect of and not exceeding his or her Ontario property tax credit, if any, for the year.

Qualifying individual

   (2)  An individual is a qualifying individual for a taxation year for the purposes of this section if, on December 31 in the year, the individual,

  (a)  is resident in Ontario;

  (b)  is a senior; and

   (c)  has not been confined to a prison or similar institution for a total of more than 180 days during the year.

Income threshold for 2010 and subsequent years

   (3)  If the amounts calculated in accordance with paragraph 7 of subsection 23 (1) of this Act, described for the purposes of clause (b) of the definitions of "B" and "C" in subsection (5), are less than the amounts described in subsection (4) that are to be paid to a senior and his or her qualifying spouse or qualifying common-law partner in January, April, July and October of the taxation year, the amounts for the purposes of clause (b) in the definitions of "B" and "C" in subsection (5) shall be equal to the amount determined by reference to the amounts described in subsection (4) that are authorized to be paid to a senior and his or her qualifying spouse or qualifying common-law partner in January, April, July and October of the taxation year.

Same

   (4)  For the purposes of subsection (3), the amounts are,

  (a)  the maximum amount of a pension under the Old Age Security Act (Canada);

  (b)  the maximum amount of a guaranteed income supplement under Part II of the Old Age Security Act (Canada); and

   (c)  the maximum amount of a guaranteed annual income increment under the Ontario Guaranteed Annual Income Act.

Amount of tax credit

   (5)  Subject to section 101.3, the amount of a qualifying individual's Ontario property tax credit under this section for a taxation year is the lesser of $1,025 and the amount, if any, calculated using the formula,

A – [0.02 × (B – C)]

in which,

  "A"  is the least of,

         (a)  $1,025,

         (b)  the individual's occupancy cost for the year, and

          (c)  the sum of,

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

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

  "B"  is,

         (a)  the greater of $20,000 and the individual's adjusted income for the year, if the individual did not have a qualifying spouse or qualifying common-law partner throughout the year, or

         (b)  the greater of $25,000 and the individual's adjusted income for the year, if the individual had a qualifying spouse or qualifying common-law partner at any time in the year, and

  "C"  is,

         (a)  $20,000, if the individual did not have a qualifying spouse or qualifying common-law partner throughout the year, or

         (b)  $25,000, if the individual had a qualifying spouse or qualifying common-law partner at any time in the year.

Reduction in amount of Ontario 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 in subsection (5) is reduced by the amount, if any, by which the sum of "D" and "E" exceeds "F" where,

  "D"  is the amount determined in respect of the senior for the year in subsection (5) before the application of this subsection,

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

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

Rules relating to Ontario property tax credit

   101.3  The following rules apply in determining the amount, if any, of an individual's Ontario property tax credit under section 101.1 or 101.2 for a taxation year:

    1.  If an individual has a qualifying spouse or qualifying common-law partner at any time in a taxation year,

            i.  only one of them may claim the Ontario property tax credit for the year, and

           ii.  for the purposes of determining the amount of the Ontario property tax credit for the year, the occupancy cost for the year of the individual claiming the credit may include the occupancy cost, if any, of his or her qualifying spouse or qualifying common-law partner for the year.

    2.  If two or more individuals inhabit the same principal residence in a taxation year and each of them is entitled to claim an Ontario property tax credit for the year in respect of the residence, the total occupancy cost relating to the residence is allocated to each of them according to the following:

            i.  The beneficial ownership of each of them in the principal residence, if the principal residence is not a non-seasonal mobile home and is not a residence occupied pursuant to a life lease or a lease having a term of 10 years or more.

           ii.  The portion of the rent for the principal residence that each of them paid in respect of the occupation of the residence in the year.

          iii.  In the case of a principal residence that is a non-seasonal mobile home owned and occupied by one or both of them, the amount paid for the year by each of them to the owner of the land on which the mobile home is located that can reasonably be considered to have been paid to compensate the owner for municipal tax assessed against the land for the year and the amount of municipal tax that was paid by each of them for the year in respect of the mobile home.

          iv.  In the case of a principal residence occupied pursuant to a life lease or a lease having a term of 10 years or more where the lease has been paid in full, the same percentage of the amount of municipal tax that is reasonably applicable to the residence for the taxation year as the percentage interest of each of them in the lease.

    3.  If an individual has more than one taxation year ending in a calendar year, the individual shall have an occupancy cost for only the last taxation year ending in the calendar year and the amount of that occupancy cost shall be the amount that would be determined if that taxation year included all previous taxation years ending in the calendar year.

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

Part v.3
ontario sales tax credit

Definitions

   104.11  (1)  In this Part,

"adjusted income" means adjusted income as defined in subsection 122.5 (1) of the Federal Act; ("revenu rajusté")

"eligible individual" means an individual who is an eligible individual as defined in subsection 122.5 (1) of the Federal Act and who is not excluded from this definition because of subsection 122.5 (2) of the Federal Act; ("particulier admissible")

"qualified dependant" means a qualified dependant as defined in subsection 122.5 (1) of the Federal Act and who is not excluded from this definition because of subsection 122.5 (2) of the Federal Act; ("personne à charge admissible")

"qualified relation" means a qualified relation as defined in subsection 122.5 (1) of the Federal Act and who is not excluded from this definition because of subsection 122.5 (2) of the Federal Act. ("proche admissible")

Application of Federal Act

   (2)  Subsections 122.5 (3.1), (3.2), (5), (6), (6.1), (6.2) and (7) and 160.1 (1.1) of the Federal Act apply for the purposes of this section in respect of an overpayment deemed to arise under subsection (4) as if a reference in any of those provisions to a provision of the Federal Act were a reference to the corresponding provision of this section.

Deemed overpayment on account of tax

   (3)  If an overpayment on account of an individual's liability under this Act is deemed to have arisen during a specified month ending after June 30, 2010, for a taxation year, the Ontario Minister shall pay an Ontario sales tax credit to the individual for the specified month in accordance with this section.

When overpayment is deemed to have arisen

   (4)  An overpayment on account of an individual's liability under this Act for a taxation year is deemed to have arisen during a specified month for a taxation year if the following conditions are satisfied:

    1.  The individual is an eligible individual.

    2.  The individual is resident in Ontario immediately before the first day of the specified month.

    3.  The individual and, if required by the Ontario Minister, the person who is the individual's qualified relation have each filed a return of income for the taxation year.

Amount of payment for specified month

   (5)  The amount of the Ontario sales tax credit to which an individual is entitled for a specified month is the amount calculated using the formula,

in which,

  "A"  is the total of,

         (a)  $260,

         (b)  $260 where the individual has a qualified relation,

          (c)  $260 where the individual has no qualified relation for the taxation year and is entitled to deduct an amount for the taxation year under subsection 118 (1) of the Federal Act because of paragraph (b) of the definition of "B" in that subsection in respect of a qualified dependant of the individual for the taxation year, and

         (d)  $260 multiplied by the number of qualified dependants of the individual other than a qualified dependant in respect of whom an amount is included under clause (c),

  "B"  is,

         (a)  the greater of $20,000 and the individual's adjusted income for the taxation year if the individual does not have a qualified relation or a qualified dependant, and

         (b)  the greater of $25,000 and the individual's adjusted income for the taxation year if the individual has a qualified relation, a qualified dependant or both, and

  "C"  is,

         (a)  $20,000 if the individual does not have a qualified relation or qualified dependant, and

         (b)  $25,000 if the individual has a qualified relation, a qualified dependant or both.

Months specified

   (6)  For the purposes of this section, the months specified for a taxation year are August and November of the immediately following taxation year and February and May of the second following taxation year.

Amount not to be charged

   (7)  A credit under this section or an entitlement to the payment of a credit under this section, as the case may be,

  (a)  shall not be assigned, charged, attached or given as security; and

  (b)  shall not be garnished.

Repayment of Ontario sales tax credit

   (8)  If, after an Ontario sales tax credit is paid to an individual under this section, it is determined that the individual received an Ontario sales tax credit to which he or she is not entitled or received an amount greater than the amount to which he or she was entitled, the individual shall repay the amount or the excess amount, as the case may be, to the Ontario Minister.

Exception

   (9)  Subsection (8) does not apply if the total amount payable in respect of a taxation year is not more than $2.

No interest payable

   (10)  No interest is payable on the amount of an Ontario sales tax credit paid by the Ontario Minister under this section or repayable by an individual under this section.

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

part v.4
Ontario sales tax transition benefit

Definitions

   104.12  (1)  In this Part,

"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 modifié")

"eligible individual", in relation to a specified month, means an individual who is not an ineligible individual in relation to the specified month and who, immediately before the first day of the specified month,

  (a)  is 18 years of age or more,

  (b)  is married or in a common-law partnership, or

   (c)  is a parent who resides with one or more qualified dependants; ("particulier admissible")

"ineligible individual", in relation to a specified month, means an individual who, at the beginning of the specified month, is a person referred to in paragraph 122.5 (2) (a), (b), (c) or (d) of the Federal Act; ("particulier exclu")

"qualified dependant" means, in respect of an individual for a specified month, a person who, at the beginning of the specified month,

  (a)  is the child of the individual or is dependent for support on the individual or on the qualified relation of the individual,

  (b)  resides with the individual,

   (c)  is under the age of 18 years,

  (d)  is not an eligible individual in relation to a specified month, and

  (e)  is not a qualified relation in respect of any individual; ("personne à charge admissible")

"qualified relation" means, in respect of an individual at any time, a person who was, at that time, the individual's cohabiting spouse or common-law partner within the meaning assigned by section 122.6 of the Federal Act; ("proche admissible")

"specified month" means June 2010, December 2010 or June 2011. ("mois déterminé")

Application of subs. (3)

   (2)  Subsection (3) applies for the purposes of this Part if an individual (the "specified individual") dies after December 31, 2009 and would have been, but for his or her death,

  (a)  an eligible individual who has a qualified relation or qualified dependant at the beginning of a specified month; or

  (b)  an individual who is a qualified relation or a qualified dependant in respect of an eligible individual at the beginning of a specified month.

Continuation of benefit

   (3)  If this subsection applies in respect of a specified individual, the entitlement of the specified individual, or of an eligible individual in respect of whom the specified individual is a qualified relation or a qualified dependant, to an Ontario sales tax transition benefit under this section for a specified month commencing after the specified individual dies shall be determined under this section as if the specified individual did not die.

Shared custody

   (4)  If an individual can reasonably be considered to reside at a particular time with two parents who live separate and apart, the individual shall be deemed for the purposes of clause (b) of the definition of "qualified dependant" in subsection 122.5 (1) of the Federal Act to reside at the particular time with the parent who claims an amount under paragraph 118 (1) (b.1) of the Federal Act in respect of the individual for the taxation year immediately preceding the taxation year that includes the particular time.

Deemed overpayment on account of tax

   (5)  If an eligible individual is deemed to have made an overpayment of tax under this Act for a specified month, the Ontario Minister shall pay an Ontario sales tax transition benefit to the individual for the month in accordance with this section.

Deemed overpayment, June 2010

   (6)  An eligible individual is deemed to have made an overpayment on account of tax payable under this Act for June 2010 if the following conditions are satisfied:

    1.  The eligible individual,

            i.  is resident in Canada on December 31, 2009 and a return of income in respect of the individual's 2009 taxation year is filed for the purposes of the Federal Act by April 30, 2011, or

           ii.  is not resident in Canada on December 31, 2009 and provides a statement of world-wide income to the Ontario Minister in respect of the 2009 taxation year by April 30, 2011.

    2.  The eligible individual is resident in Ontario on May 31, 2010.

    3.  The Ontario Minister does not pay an Ontario sales tax transition benefit under this section for June 2010 to a person who was the individual's qualified relation on May 31, 2010.

Deemed overpayment, December 2010

   (7)  An eligible individual is deemed to have made an overpayment on account of tax payable under this Act for December 2010 if the following conditions are satisfied:

    1.  The eligible individual,

            i.  is resident in Canada on December 31, 2009 and a return of income in respect of the individual's 2009 taxation year is filed for the purposes of the Federal Act by April 30, 2011, or

           ii.  is not resident in Canada on December 31, 2009 and provides a statement of world-wide income to the Ontario Minister in respect of the 2009 taxation year by April 30, 2011.

    2.  The eligible individual is resident in Ontario on November 30, 2010.

    3.  The Ontario Minister does not pay an Ontario sales tax transition benefit under this section for December 2010 to a person who was the individual's qualified relation on November 30, 2010.

Deemed overpayment, June 2011

   (8)  An eligible individual is deemed to have made an overpayment on account of tax payable under this Act for June 2011 if the following conditions are satisfied:

    1.  The eligible individual,

            i.  is resident in Canada on December 31, 2010 and a return of income in respect of the individual's 2010 taxation year is filed for the purposes of the Federal Act by April 30, 2012, or

           ii.  is not resident in Canada on December 31, 2010 and provides a statement of world-wide income to the Ontario Minister in respect of the 2010 taxation year by April 30, 2012.

    2.  The eligible individual is resident in Ontario on May 31, 2011.

    3.  The Ontario Minister does not pay an Ontario sales tax transition benefit under this section for June 2011 to a person who was the individual's qualified relation on May 31, 2011.

Determination by the Ontario Minister

   (9)  The Ontario Minister shall determine, without an application by the eligible individual,

  (a)  whether the individual is entitled to receive an Ontario sales tax transition benefit for a specified month; and

  (b)  the amount of the benefit, if any, to which the individual is entitled for the specified month.

Calculation of payment, June 2010 and December 2010

   (10)  The amount of an Ontario sales tax transition benefit to which an eligible individual is entitled for each of June 2010 and December 2010 is determined as follows:

    1.  If the individual does not have a qualified relation or a qualified dependant at the beginning of the relevant specified month, the amount of the individual's Ontario sales tax transition benefit for the specified month is the amount calculated using the formula,

$100 – (0.05 × A)

in which,

         "A"  is the amount, if any, by which the individual's adjusted income for the 2009 taxation year exceeds $80,000.

    2.  If the specified month is June 2010 and the individual has a qualified relation or a qualified dependant at the beginning of the relevant specified month, the amount of the individual's Ontario sales tax transition benefit for the specified month is the amount calculated using the formula,

$330 – (0.05 × B)

in which,

         "B"  is the amount, if any, by which the individual's adjusted income for the 2009 taxation year exceeds $160,000.

    3.  If the specified month is December 2010 and the individual has a qualified relation or a qualified dependant at the beginning of the relevant specified month, the amount of the individual's Ontario sales tax transition benefit for the specified month is the amount calculated using the formula,

$335 – (0.05 × C)

in which,

         "C"  is the amount, if any, by which the individual's adjusted income for the 2009 taxation year exceeds $160,000.

Calculation of payment, June 2011

   (11)  The amount of an Ontario sales tax transition benefit to which an eligible individual is entitled for June 2011 is determined as follows:

    1.  If the individual does not have a qualified relation or a qualified dependant at the beginning of June 2011, the amount of the individual's Ontario sales tax transition benefit for June 2011 is the amount calculated using the formula,

$100 – (0.05 × D)

in which,

         "D"  is the amount, if any, by which the individual's adjusted income for the 2010 taxation year exceeds $80,000.

    2.  If the individual has a qualified relation or a qualified dependant at the beginning of June 2011, the amount of the individual's Ontario sales tax transition benefit for June 2011 is the amount calculated using the formula,

$335 – (0.05 × E)

in which,

         "E"  is the amount, if any, by which the individual's adjusted income for the 2010 taxation year exceeds $160,000.

Notice and payment

   (12)  If the Ontario Minister determines that an eligible individual is entitled to an Ontario sales tax transition benefit for a specified month, the Ontario Minister,

  (a)  shall send a notice to the individual setting out the amount of the payment for the specified month to which the individual is entitled; and

  (b)  shall make the payment to the individual in accordance with the determination.

Determination by Ontario Minister is final

   (13)  The determination by the Ontario Minister of whether an individual is entitled to receive an Ontario sales tax transition benefit for a specified month and the amount of the benefit, if any, is final and is not subject to review.

No set off

   (14)  No portion of an Ontario sales tax transition benefit shall be retained by the Ontario Minister and applied to reduce any debt to the Crown in right of Ontario or in right of Canada.

Time limit for payment

   (15)  Despite subsection (12), the Ontario Minister shall not pay an Ontario sales tax transition benefit under this section after April 30, 2013 and no individual is entitled to receive a payment under this section after that date unless the individual's entitlement to the payment arose by reason of an assessment or reassessment made under this Act before May 1, 2013.

Minimum payment

   (16)  If the amount of an Ontario sales tax transition benefit to which an individual is entitled for a specified month is greater than zero but less than $10, the Ontario Minister shall pay an Ontario sales tax transition benefit for the specified month to the individual in the amount of $10.

Repayment after assessment or reassessment

   (17)  If the Ontario Minister determines that an individual received an Ontario sales tax transition benefit to which he or she is not entitled or received an amount greater than the amount to which he or she is entitled, the individual shall repay the amount or the excess amount, as the case may be, to the Ontario Minister.

Exception

   (18)  Subsection (17) does not apply if,

  (a)  the amount that is repayable is not more than $2; or

  (b)  the Ontario Minister's determination referred to in subsection (12) results from an assessment or reassessment under this Act that is made after April 30, 2013.

Recovery of excess amounts

   (19)  An amount repayable under subsection (17) that has not been repaid to the Ontario Minister constitutes a debt to the Crown in right of Ontario and may be recovered by way of deduction, set-off or in any court of competent jurisdiction in proceedings commenced at any time or in any other manner provided by this Act.

No interest payable

   (20)  No interest is payable on the amount of an Ontario sales tax transition benefit paid by the Ontario Minister under this section or repayable by an individual under this section.

Bankruptcy

   (21)  For the purposes of subsections (10) and (11), if an individual is bankrupt at any time during the 2009 or 2010 taxation year,

  (a)  the individual shall be deemed to have only one taxation year in that year beginning on January 1 and ending on December 31; and

  (b)  the individual's income for that taxation year shall be deemed to be the total amount of the individual's income for that year. 

Amount not to be charged

   (22)  Subsection 122.61 (4) of the Federal Act applies for the purposes of this Part in respect of any overpayment deemed to arise under this section.

Repeal

   (23)  This section is repealed on December 31, 2013.

   26.  Subsections 105 (3.2) and (3.3) of the Act are repealed and the following substituted:

Amounts determined in respect of an additional refund of basic tax

   (3.2)  For the purpose of subsection (3.1), the amount determined for a taxation year in respect of an additional refund of basic tax under subsection 4 (9.1) of the Income Tax Act is the amount, if any, by which "Q" exceeds "R" where,

  "Q"  is the amount that the trust was entitled to receive for the year under subsection 4 (9.1) of the Income Tax Act, and

  "R"  is the amount determined under subsection (3.3) for the year in respect of an additional refund of surcharge or surtax, as the case may be, under subsection 4 (9.1) of the Income Tax Act.

Amounts previously refunded as additional refunds of surtax

   (3.3)  For the purpose of subsection (3.1), the amount determined for a taxation year in respect of an additional refund of surcharge or surtax under subsection 4 (9.1) of the Income Tax Act is,

  (a)  if the trust was entitled to receive an amount for the year under subsection 4 (9.1) of the Income Tax Act, the lesser of,

           (i)  that amount, and

          (ii)  the amount determined as "C" for the year for the purposes of the formula in subsection 4 (9.1) of the Income Tax Act less the sum of,

                 (A)  the sum of all amounts of surcharge or surtax, as the case may be, that were refunded as part of an amount refunded to the trust before the year under subsection 4 (9.1) of the Income Tax Act, and

                 (B)  the sum of all amounts of surcharge or surtax, as the case may be, that were refunded as part of an amount refunded to the trust before the year or in the year under subsection 4 (9) of the Income Tax Act in respect of a taxation year ending after 1995; or

  (b)  in any other case, nil.

   27.  Paragraph 1 of subsection 125 (2) of the Act is amended by striking out "and" at the end of subparagraph iv, by adding "and" at the end of subparagraph v and by adding the following subparagraph:

          vi.  the amount of an Ontario sales tax credit, if any, to which the taxpayer is entitled under section 104.11.

   28.  (1)  Subclause 144 (1) (b) (ii) of the Act is repealed and the following substituted:

          (ii)  attempting to obtain for the benefit of the person or another person an amount in respect of a tax credit under Part IV, an Ontario child benefit under section 104, a senior homeowners' property tax grant under section 104.1, the Ontario sales tax credit under section 104.11 or the Ontario sales tax transitional benefit under section 104.12 in excess of the amount to which the person or other person is entitled, or

   (2)  Clause 144 (2) (a) of the Act is repealed and the following substituted:

  (a)  to a fine of not less than 50 per cent and not more than 200 per cent of the amount of the tax that was sought to be evaded or the amount that was sought in excess of the tax credit under Part IV, the Ontario child benefit under section 104, the senior homeowners' property tax grant under section 104.1, the refund under Part V.2, the Ontario sales tax credit under section 104.11 or the Ontario sales tax transitional benefit under section 104.12 to which the person or the other person is entitled; or

   29.  Clause 172 (1) (e) of the Act is repealed and the following substituted:

  (e)  prescribing a percentage for the purposes of clause 92 (3) (b) and the period of time after December 31, 2007 and before July 1, 2009 to which it applies;

(e.1) prescribing a percentage for the purposes of clause 92 (3) (c) and the period of time after June 30, 2009 to which it applies;

Commencement

   30.  (1)  Subject to subsections (2), (3) and (4) this Schedule comes into force on the day the Ontario Tax Plan for More Jobs and Growth Act, 2009 receives Royal Assent.

Same

   (2)  Sections 3, 10, 11 and 16, subsections 22 (2) and (3) and section 26 are deemed to have come into force on January 1, 2009.

Same

   (3)  Sections 15, 18, 19 and 20 are deemed to have come into force on March 27, 2009.

Same

   (4)  Section 17 is deemed to have come into force on July 1, 2009.

Schedule V
Teachers' Pension Act

   1.  (1)  Subsection 5 (1.2) of the Teachers' Pension Act is amended by striking out "subsections (3), (4) and (7)" and substituting "subsections (3) and (7)".

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

Payments re foregone inflation adjustments

   (2.1)  For the purposes of subsection (1.1), no additional payments made on or after January 1, 2010 by the Minister of Education or employers who contribute under the pension plan in connection with the foregone inflation adjustments described in subsection (2.2) shall be included in determining the total amount of contributions payable by the Minister of Education and the employers who contribute under the plan.

Same

   (2.2)  Foregone inflation adjustments are the inflation adjustments foregone in accordance with subsections 80 (3a) and (3b) of Schedule 1, as it reads on January 1, 2010, and the contributions to be made by the Minister of Education and the employers in connection with those adjustments are the contributions required by subsections 25 (2d) and 26 (1d) of Schedule 1, as it reads on January 1, 2010.

Commencement

   2.  This Schedule comes into force on January 1, 2010.

Schedule W
Toronto Futures Exchange Act

   1.  The Toronto Futures Exchange Act is repealed.

Commencement

   2.  This Schedule comes into force on the day the Ontario Tax Plan for More Jobs and Growth Act, 2009 receives Royal Assent.

EXPLANATORY NOTE

Schedule A
Alcohol and Gaming Regulation and Public Protection Act, 1996

The Alcohol and Gaming Regulation and Public Protection Act, 1996 is amended to add Part II which imposes taxes,

  (a)   on a purchaser of beer from a beer manufacturer's on-site store, an agency store of the Liquor Control Board of Ontario, a retail store operated by Brewers' Retail Inc. or a licensed establishment;

  (b)   on a purchaser of draft beer made by a brew pub; and

  (c)   on a purchaser of wine or a wine cooler from a winery retail store.

Purchasers of beer, wine and wine coolers from the Liquor Control Board of Ontario and consumers who make their own beer and wine are not subject to the tax.  The tax under Division B of Part II of the Act takes effect on July 1, 2010 or when harmonized sales tax takes effect.

Division E of Part II of the Act imposes taxes retroactively on purchasers who purchased beer, wine and wine coolers between January 1, 2007 and the day the tax under Division B of Part II of the Act takes effect, but the tax imposed during this period is deemed to have been paid and remitted to the Minister of Finance. 

Certain fees imposed by the Commission under the authority of section 14 of the Act are eliminated as of the day the tax under Division B of Part II of the Act takes effect.

Part II of the Act includes administrative and enforcement provisions similar to those in Ontario tax statutes.

Consequential and technical housekeeping amendments are made to the Act and the Liquor Licence Act.

Schedule B
Architects act

The Architects Act is amended to provide that sections 3.2, 3.3 and 3.4 of the Business Corporations Act (which govern professional corporations) do not apply to corporations, or to corporations in partnerships of corporations, that have been issued certificates of practice under the Act.

Schedule C
Commodity Futures Act

The enactment of paragraph 1.1 of subsection 65 (1) of the Commodity Futures Act gives the Ontario Securities Commission the same authority it has under the Securities Act to make rules prescribing circumstances in which a suspended registration is or may be reinstated.

Schedule D
Community Small Business Investment Funds Act

The amendment to clause (c) of the definition of "eligible investor" in subsection 12 (1) of the Community Small Business Investment Funds Act provides that the spouse or common-law partner of a person whose tax-free savings account invests in a labour sponsored investment fund corporation is not an eligible investor with respect to the fund.  A correction in the English wording is made in subsection 12 (3) of the Act.

A shareholder of a labour sponsored investment fund corporation who redeems his or her shares less than eight years after the shares were issued is required to pay a tax equivalent to the amount of the tax credit the shareholder was entitled to receive on purchasing the shares.  The amendments to section 14.1 of the Act adjust the calculation of the tax to reflect changes made in the tax credit rates.

The amendment to clause 18.11 (4) (a) of the Act terminates the Ontario Commercialization Investment Fund Program by providing that no eligible investments may be made after 2009.

Subsection 19 (1) of the Act lists the only form of assets an investment corporation may hold.  The enactment of clause 19 (1) (d.1) permits a labour sponsored investment fund corporation to hold an investment purchased from a seller that is a labour sponsored investment fund corporation if, before the seller sold the investment, the investment was an eligible investment under the Act with respect to the seller.

Under section 27 of the Act, a labour sponsored investment fund corporation is required to pay a penalty if its registration under the Act is revoked or if the corporation winds up, dissolves or surrenders its registration under the Act.  The amount of the penalty is equivalent to the amount of tax credits its shareholders were entitled to receive on purchasing shares of the corporation that have not been outstanding at least eight years.  A similar penalty is payable by a shareholder, equal to the amount of tax credits the shareholder was entitled to receive on purchasing shares of a labour sponsored investment fund corporation, if the shareholder receives an amount in respect of a reduction in the stated capital attributable to those shares and the shares were not outstanding at least eight years.  The amendments to section 27 of the Act adjust the calculation of the penalty to reflect changes made in the tax credit rates.

Section 27.1 of the Act sets out rules relating to the sale or amalgamation of labour sponsored investment fund corporations.  The enactment of paragraph 11 of subsection 27.1 (4) of the Act confirms the joint and several liability of the purchaser and vendor corporations for any liabilities that are due under the Act by the vendor corporation.

Schedule E
Condominium Act, 1998

The Condominium Act, 1998 is amended to provide that the investments that a condominium corporation is allowed to make with money contained in its general account or its reserve fund account are expanded to include instruments issued by credit unions which are insured by the Deposit Insurance Corporation of Ontario.

Schedule F
Co-operative Corporations Act

The amendments to the Co-operative Corporations Act bring certain provisions relating to co-operatives, including the election of directors and the conduct of general meetings and directors' meetings, more into line with comparable provisions of the Business Corporations Act.  Non-members of co-operatives are permitted to be directors of the co-operative, subject to certain restrictions.

Schedule G
Corporations Tax Act

Section 43.5 of the Corporations Tax Act provides the Ontario film and television tax credit to qualifying production companies for taxation years ending before January 1, 2009.  A bonus 10 per cent tax credit is allowed under this section in respect of eligible Ontario productions that are regional Ontario productions.  The definition of "regional Ontario production" in subsection 43.5 (19) of the Act is amended to provide that a regional Ontario production will include a production that consists entirely of animation only if not more than 15 per cent of the principal photography in Ontario for the production is done in the Greater Toronto Area.  A technical amendment is also made to the definition of "film studio" in subsection 43.5 (19) to provide that a film studio includes a building in which activities are carried out in support of animation.

These amendments are effective as of May 3, 2003.

Schedule H
Credit Unions and CAisses populaires Act, 1994

The re-enactment of clause 39 (1) (d) of the Credit Unions and Caisses Populaires Act, 1994 permits credit unions to accept such deposits in trust as may be authorized under Ontario or federal legislation and removes the requirement that regulations be made to prescribe the statutes under which deposits may be held at credit unions.

New subsection 182 (1.1) of the Act provides that the payments of unclaimed deposits to the Minister of Finance as required under subsection 182 (1) of the Act are to be made in accordance with the Minister's directions.

Schedule I
Education Act

The Schedule amends the Education Act in respect of accounting practices and standards for school boards.  A new rule is added to the Act that boards shall not have an in-year deficit, and shall not submit estimates that indicate the board would have an in-year deficit, greater than the amount set out in the Act.  An exception is made for a board if a deficit is permitted as part of a financial recovery plan under the new Division C.1 or if the board is subject to an order under the specified provisions of the Act.  In addition, the Minister may approve an in-year deficit that is greater than the amount set out in the Act, upon considering factors such as whether the deficit is structural or would occur only one time and whether the deficit is due to circumstances beyond the board's control.

The Act is amended so that boards are no longer authorized to establish reserve funds.  However, boards continue to be authorized to restrict amounts for specified purposes, and in some cases are required under the Act to do so.

The power to make regulations governing the making of legislative grants to school boards is amended so that a regulation may set out rules respecting the number, timing and amount of payments.  The Minister is required to follow any such rules in making decisions respecting legislative grants.

A new Division C.1 is added to the Act respecting financial recovery plans.  The Minister may order a board to adopt a financial recovery plan in various circumstances, in particular if the board's financial statements indicate the board had an accumulated deficit or an in-year deficit contrary to the rule set out in the Act.  The Minister may require changes to be made to a plan, or may require a board to submit a new plan.  Boards are required to comply with the plan until the board's financial statements for a fiscal year show neither an accumulated deficit nor an in-year deficit.

Obsolete provisions are repealed and various consequential changes and corrections are made.

Schedule J
Financial Administration Act

The Schedule replaces provisions relating to public finance in Part VI of the Capital Investment Plan, 1993, sections 11 and 12 of the Ministry of Revenue Act, the Ministry of Treasury and Economics Act and the Treasury Board Act, 1991 with corresponding provisions in a new Part 0.1 of the Financial Admin­istration Act, and makes the changes which are identified below.

Section 1 of the Financial Administration Act is amended to explain references in the Act to an appropriation for a fiscal year.

Section 1.0.4 of the Act provides that the Treasury Board Office of the Ministry of Finance provides the staff required for the operation and administration of the Treasury Board.  The Deputy Minister of Finance holds the office of Secretary of Treasury Board unless the Lieutenant Governor in Council has designated another person who is a public servant referred to in paragraph 1 or 3 of subsection 2 (2) of the Public Service of Ontario Act, 2006 to hold that office.  The Secretary of Management Board of Cabinet is authorized and required to act in place of the Secretary of Treasury Board if there is no Secretary of Treasury Board or the Secretary is absent or unable to act.

Clause 1.0.5 (1) (e) of the Act gives the Treasury Board the additional power and duty to approve new and existing programs of any ministry.

Subsection 1.0.5 (4) of the Act deems any existing directive made under the Treasury Board Act, 1991 to have been made under section 1.0.5 of the Act.

Sections 1.0.7 and 1.0.8 of the Act reflect the inclusion of the recognition of non-cash expenses in the definitions of "expenditure" and "appropriation" in the section 1 of the Act.

Subsection 1.0.14 (1) of the Act limits the Minister of Finance's power and duty to manage all public money where another Act provides otherwise.

Subsection 1.0.14 (3) of the Act gives the Minister of Finance the additional power to issue policies.

Subsection 1.0.14 (4) of the Act deems all existing directives made under the Ministry of Treasury and Economics Act to have been made under the authority of section 1.0.14 of the Act.

Subsection 1.0.14 (5) of the Act deems all references to the Treasurer of Ontario or to the Treasurer of Ontario and Minister of Economics in any other Act to be a reference to the Minister of Finance. 

Subsection 1.0.16 (2) of the Act excludes the authority to grant remissions under subsection 5.1 (3) of the Act and the authority to make regulations from the Minister of Finance's powers that may be delegated under subsection 1.0.16 (1) of the Act.

Subsection 1.0.16 (7) of the Act deems existing delegations of authority made under subsection 64 (1) of the Capital Investment Plan Act, 1993 to have been made under section 1.0.16 of the Act.

Subsection 1.0.17 (2) of the Act extends protection from personal liability to public servants who do not work in the Ministry of Finance but provide services to the Ministry of Finance in respect of acts or omissions done in the performance or intended performance of a delegated or subdelegated power or duty of the Minister of Finance.

Section 1.0.20 of the Act reflects the power of the Minister of Finance to issue policies under subsection 1.0.14 (3) of the Act.

Section 1.0.23 of the Act reflects the inclusion of the recognition of non-cash expenses in the definitions of "expenditure" and "appropriation" in section 1 of the Act.

Subsection 1.0.25 (1) of the Act extends the Minister of Finance's right to be provided with information to require that information be provided by Crown agencies, entities whose financial statements are included in the consolidated financial statements set out in the Public Accounts of Ontario and entities whose financial obligations have been guaranteed by the Government of Ontario or a Crown agency.

Subsection 1.0.25 (2) of the Act extends the Minister of Finance's right to be provided with information to require that information be provided by the administrators of pension plans that are sponsored or co-sponsored by the Province of Ontario, including a Crown agency, or by any entity whose financial statements are included in the consolidated financial statements set out in the Public Accounts of Ontario, but only in respect of such information regarding the pension plan and its assets as the Minister of Finance requires.

Subsection 1.0.25 (3) of the Act extends the Minister of Finance's right to be provided with access to books, accounts, financial records, reports, files and other papers, things or property to require such access from Crown agencies.

Section 2 of the Act is amended to require that the activities of certain non-development corporations constituted under section 5 of the Development Corporations Act be funded exclusively by transfer payments from the Province.

New subsection 7 (3) of the Act permits interest to be credited on money paid to Ontario for a special purpose that has been paid into the Consolidated Revenue Fund in respect of a period of time that precedes the date of the relevant order of the Lieutenant Governor in Council. 

New subsection 7 (4) of the Act limits the amount of interest that can be credited under subsection 7 (2) of the Act to the income earned on the relevant funds while they are held in the Consolidated Revenue Fund.  New subsection 7 (5) of the Act creates an exception from the application of the limit in subsection 7 (4) of the Act in respect of pension funds or supplementary pension funds that are held in the Consolidated Revenue Fund.

New subsection 11 (5) of the Act extends the statutory appropriation under subsection 11 (4) of the Act to include amounts payable under Part IX of the Excise Tax Act (Canada) in respect of which the Crown is entitled to a refund.

New subsection 43 (3) of the Act provides that section 43 of the Act applies despite any other Act, unless the other Act expressly provides that it applies despite that subsection.

Wording changes are made to the French version of certain provisions of the Act for linguistic purposes.

Provisions in the Act that are no longer required are repealed, and Part VI of the Capital Investment Plan Act, 1993, sections 11 and 12 of the Ministry of Revenue Act, the Ministry of Trea­sury and Economics Act and the Treasury Board Act, 1991 are repealed.  Consequential amendments are made to various Acts as a result of the repeal of the Ministry of Treasury and Economics Act and the Treasury Board Act, 1991.

Schedule K
Interim Appropriation for 2010-2011 Act, 2009

The Schedule enacts the Interim Appropriation for 2010-2011 Act, 2009 which authorizes expenditures for the fiscal year ending on March 31, 2011 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, 2011 that are tabled in the Assembly.

Schedule l
Management board of Cabinet Act

Subsection 2 (2) of the Management Board of Cabinet Act currently provides that the Management Board of Cabinet may have up to six members in addition to the Chair and the Vice-Chair.  The amendment to that subsection changes the maximum number of members to seven members in addition to the Chair and Vice-Chair.

Schedule M
ministry of revenue Act

Currently, section 6.1 of the Ministry of Revenue Act governs certain pension arrangements for eligible former employees of the Ministry of Revenue who, beginning in April 2008, became employees of the Canada Revenue Agency in connection with the transfer of the administration of certain Ontario statutes that impose taxes on corporations. 

Proposed amendments to that section would expand its operation so that it governs those pension arrangements for eligible former employees in the Ministry, or in the Ministry of Finance, who become employees in the federal public service in connection with any prescribed restructuring of tax authority between the Province and Canada and any prescribed transfer of tax administration activities from the Province to Canada.

Schedule n
Ontario Capital Growth Corporation Act, 2008

The Schedule amends the objects of the Ontario Capital Growth Corporation to include dealing with other investments that are prescribed by the regulations made under the Ontario Capital Growth Corporation Act, 2008 and dealing with property in connection with those investments.

The Schedule imposes conditions such as the consent of the Minister of Finance on the power of the Corporation to make temporary investments with money not immediately required to carry out its objects. It removes the restrictions that were previously in the Act with respect to the power of the Corporation to make non-temporary investments to carry out its objects.

Schedule o
Ontario Loan Act, 2009 (No. 2)

The Ontario Loan Act, 2009 (No. 2) is enacted, authorizing the Crown to borrow a maximum of $15.1 billion.

Schedule p
Proceedings Against the Crown Act

Technical amendments are made to subsection 2 (1) of the Proceedings Against the Crown Act.  The names of particular tax statutes are deleted and replaced with a general reference to all statutes that impose a tax payable to the Crown or the Minister of Finance.  Reference to Parts V.1 (Debt Retirement Charge) and VI (Special Payments) of the Electricity Act, 1998 is added.

Schedule q
Professional engineers act

The Professional Engineers Act is amended to provide that sections 3.2, 3.3 and 3.4 of the Business Corporations Act (which govern professional corporations) do not apply to corporations, or to corporations in partnerships of corporations, that have been issued certificates of authorization under the Act.

Schedule r
Retail Sales TAx Act

The Retail Sales Tax Act is amended to provide for the ratification of the Comprehensive Integrated Tax Coordination Agreement entered into by the Minister of Finance on behalf of Ontario and the Minister of Finance for Canada on behalf of the Government of Canada.  The agreement sets out the framework under which the Government of Canada will administer and collect a tax imposed under Part IX of the Excise Tax Act (Canada) in respect of Ontario.  The revenue from this tax will be paid to Ontario in accordance with the agreement.

The amendments to the Act provide for "point of sale" rebates of tax imposed under Part IX of the Excise Tax Act (Canada) in respect of Ontario with respect to,

  (a)   books;

  (b)   children's clothing, footwear and diapers;

  (c)   children's car seats and car booster seats;

  (d)   feminine hygiene products;

  (e)   newspapers; and

   (f)   prepared food and beverages purchased in prescribed circumstances for not more than $4.00.

The "point of sale" rebates will be administered by the Government of Canada.

Section 2.0.0.1 is enacted and sections 2, 2.0.1, 3, 3.1 and 4 of the Act are amended to provide that in most cases tax under the Act is not longer imposed on purchasers after June 30, 2010 in respect of tangible personal property, taxable services and admissions to places of amusement.

New section 2.1.1 of the Act continues and modifies the tax in respect of the purchase of transient accommodation.  The rate of tax, which cannot exceed 3 per cent, is prescribed by the regulations and may vary depending on the location of the transient accommodation in Ontario.

Amendments to section 4.1 of the Act eliminate after June 30, 2010 the tax credit for fuel conservation on the purchase of new passenger cars.

The tax currently imposed under section 4.2 of the Act on purchasers of used motor vehicles is continued and modified after June 30, 2010 to apply as well to purchasers of other types of specified vehicles who are currently taxed under section 2 of the Act.

Subparagraph 38 iii of subsection 7 (1) and paragraph 2 of subsection 9 (3), which refer to the Community Psychiatric Hospitals Act, are repealed.

New section 14.1 of the Act authorizes the Minister of Finance to pay a small business transition support payment to eligible businesses.

A technical correction is made to the French version of clause 9 (2) (e) of the Act.  Other technical and transitional amendments are included in this Schedule.

Schedule s
Securities Act

Part II of the Securities Act, which continued the Financial Disclosure Advisory Board, is repealed.

Subsections 3 (2) and (5) of the Act currently authorize the Ontario Securities Commission to have a maximum of 14 members and two Vice-Chairs.  The amendments to those subsections permit a maximum of 15 members and three Vice-Chairs.

The re-enactment of subsection 29 (3) of the Act expands the types of situations in which a representative's registration with respect to a registrant is automatically suspended under the Act to include situations in which the representative has lost his or her authority to act in a capacity in which he or she must be registered under the Act by reason of changes in employment functions or changes to or the termination of a partnership or agency relationship with the registrant.

The re-enactment of subsection 29 (6) of the Act delays the revocation of registration of a registrant after an automatic suspension of registration under the Act until any proceeding against the registrant under the rules of a self-regulatory organization has been completed.

The re-enactment of paragraph 3 of section 31 of the Act extends the right to a hearing to persons and companies whose registration is suspended automatically under the Act.

Sections 90 and 91 of the Act contain provisions that deem an offeror to have beneficial ownership of securities and that deem a person or company to be acting jointly or in concert with an offeror.  The amendments to section 102 of the Act extend the application of those provisions to acquirors for the purposes of the "early warning" provisions in sections 102.1 and 102.2 of the Act.

Sections 138.8 and 138.9 of the Act are amended to require applicants and appellants to provide notice to the Ontario Securities Commission of court dates for leave applications, trials and appeals and to require the parties to provide copies of relevant factums to the Commission.

Section 138.12 of the Act is re-enacted to authorize the Ontario Securities Commission to intervene in any appeal of a decision relating to an application for leave under section 138.8 of the Act and in any appeal of the decision in an action under section 138.3 of the Act.

The amendment to clause 143 (2) (a.0.1) of the Act corrects the French wording of the clause.

Schedule t
Succession Duty Legislation Repeal Act, 2009

The Succession Duty Legislation Repeal Act, 2009 repeals The Succession Duty Act, to the extent it remains in force and continues to apply under The Succession Duty Repeal Act, 1979, and repeals The Succession Duty Act Supplementary Provisions Act, 1980.  References to succession duty are removed from various other Acts.

Schedule u
Taxation Act, 2007

Subsection 3 (1) of the Taxation Act, 2007 is amended to reduce the "lowest tax rate" applicable in determining an individual's basic personal income tax under the Act from 6.05 per cent to 5.05 per cent.  This amendment is effective for taxation years ending after 2009.

Amendments are made to section 13 of the Act to change the dividend tax credit rates to reflect changes to the corporate income tax rate and maintain the integration of the corporate income tax and personal income tax systems.  This amendment is effective for taxation years ending after 2009.

Section 14 of the Act provides for an overseas employment tax credit for individuals.  A technical amendment, effective January 1, 2009, is made to section 14 to ensure the proper calculation of the tax credit.

Under section 16 of the Act, a 20 per cent surtax is imposed on the basic Ontario tax payable by individuals in excess of $4,257 and a 36 per cent surtax is imposed on basic Ontario tax payable by individuals in excess of $5,370.  Section 16 is amended for taxation years ending after 2009 to decrease the threshold at which the 20 per cent surtax applies to $4,006 and to decrease the threshold at which the 36 per cent surtax applies to $5,127.  These thresholds will be subject to annual adjustments under section 23 of the Act in accordance with a formula based on the Consumer Price Index.

Section 23 of the Act is amended to provide that the indexing of specific dollar amounts set out in the Act will apply for taxation years after 2010 to the surtax thresholds set out in section 16 of the Act as well as dollar amounts that apply for the purposes of the Ontario property tax credit (sections 101.1 and 101.2 of the Act) and the Ontario sales tax credit (section 104.11 of the Act).

The basic rate of income tax payable by corporations under the Act for a taxation year is 14 per cent, as set out in subsection 29 (2) of the Act.  Subsection 29 (2) of the Act is amended to reduce the basic rate of corporate income tax to,

  (a)   12 per cent on July 1, 2010;

  (b)   11.5 per cent on July 1, 2011;

  (c)   11 per cent on July 1, 2012; and

  (d)   10 per cent on July 1, 2013.

For taxation years that straddle these dates, the basic rate of tax is prorated based on the number of days in the year that are before or after the tax rate change.

Amendments are made to the rate of the small business deduction under section 31 of the Act to reduce, as of July 1, 2010, the effective rate of corporate income tax payable by Canadian-controlled private corporations to 4.5 per cent in respect of income from an active business carried on in Canada.

Section 32 of the Act is amended to eliminate, as of July 1, 2010, the small business surtax payable by corporations that claim the small business deduction.

Section 33 of the Act provides corporations with a tax credit in respect of income earned from manufacturing, processing and certain other activities.  Amendments are made to this section to reduce, as of July 1, 2010, the effective rate of corporate income tax payable in respect of income from such activities to 10 per cent.

Technical amendments are made to sections 50 and 53.1 of the Act, effective January 1, 2009, with respect to the political contributions tax credit.  Section 50 of the Act is amended to clarify the order in which a corporation may claim a transitional tax credit under Subdivision d of Division B of Part III of the Act and the political contributions tax credit under section 53.2 of the Act.  Section 53.1 of the Act is amended to correct a reference to the section under which the political contributions tax credit is deducted.

Under section 55 of the Act, corporations are liable to pay a corporate minimum tax in respect of their adjusted net income for a year if they have (or are members of associated groups that have) total assets greater than $5 million or total revenue greater than $10 million.  The rate of the corporate minimum tax, as set out in section 56 of the Act, is 4 per cent of the amount, if any, by which a corporation's adjusted net income exceeds its eligible losses.  Section 55 is amended for taxation years ending after June 30, 2010 to provide that a corporation is liable to pay the corporate minimum tax for a year only if it (or its associated group) has total assets equal to or greater than $50 million and total revenue equal to or greater than $100 million.  Section 56 is amended, effective July 1, 2010, to reduce the rate for determining the corporate minimum tax to 2.7 per cent.

Section 89 of the Act provides an apprenticeship training tax credit to incorporated and unincorporated businesses that hire eligible apprentices in certain designated trades.  The tax credit is 25 per cent (30 per cent for small businesses) of salaries and wages paid in respect of an apprentice during the first 36 months of an apprenticeship program.  The maximum annual credit is $5,000 per apprentice.  The tax credit is available in respect of apprentices that begin their apprenticeship program before January 1, 2012 and in respect of salary and wages paid before January 1, 2015.  Amendments are made to section 89 to eliminate these dates and therefore make the tax credit permanent.  In addition, further amendments to section 89 are made to,

  (a)   increase the tax credit rate of 25 per cent to 35 per cent and the higher 30 per cent rate for small businesses to 45 per cent;

  (b)   increase the maximum annual credit per apprentice to $10,000; and

  (c)   make the tax credit available for salaries and wages paid during the first 48 months of an apprenticeship program.

The amendments to section 89 are effective for expenditures incurred after March 26, 2009.

Section 91 of the Act provides for an Ontario film and television tax credit for qualifying production companies.  A bonus 10 per cent tax credit is allowed under this section in respect of eligible Ontario productions that are regional Ontario productions.  Section 91 is amended to provide that a regional Ontario production will include a production that consists entirely of animation only if no more than 15 per cent of the principal photography in Ontario for the production is done in the Greater Toronto Area.  A technical amendment is also made to the definition of "film studio" in subsection 91 (19) to provide that a film studio includes a building in which activities are carried out in support of animation.  These amendments apply for taxation years ending after 2008.

Qualifying corporations may claim an Ontario production services tax credit under section 92 of the Act in respect of certain foreign-based and non-certified domestic film and television productions in Ontario.  The amendments to section 92 of the Act expand the range of costs that qualify for the tax credit to all qualifying production costs, including a corporation's eligible wage expenditure and eligible service contract expenditure, and to the cost of purchasing or renting certain tangible properties.  These amendments apply to expenditures incurred after June 30, 2009.

Section 93 of the Act provides for an Ontario interactive digital media tax credit in respect of the creation, marketing and distribution of eligible interactive digital media products.  Section 93 is amended to increase, after March 26, 2009, the tax credit rate to 40 per cent for all qualifying corporations that develop and market their own eligible products and to 35 per cent for qualifying corporations that develop products under fee-for-service arrangements.

The Ontario interactive digital media tax credit is further extended, under new section 93.1 of the Act, to qualifying digital game corporations that incur at least $1 million of eligible labour expenditures over any 36-month period for fee-for-service work performed in Ontario in respect of an eligible digital game.  New section 93.1 applies in respect of expenditures incurred after March 26, 2009.  In addition, new section 93.2 of the Act extends the tax credit to specialized digital game corporations that carry on eligible digital game activities in Ontario in a year that are directly attributable to the development of an eligible digital game.  New section 93.2 applies in respect of expenditures incurred after March 26, 2009.

Section 95 of the Act provides for an Ontario book publishing tax credit for Ontario book publishing companies for publishing and promoting literary works by Canadian authors.  The tax credit is available in respect of the first three books by a Canadian author in an eligible category of writing.  Section 95 is amended, for expenditures incurred after March 26, 2009, to extend the credit to any number of books by a Canadian author in an eligible category of writing and to allow corporations to claim the credit in respect of direct expenses that reasonably relate to publishing an electronic version of an eligible book.

Sections 99 and 100 of the Act are amended to provide that the property and sales tax credit may only be claimed for taxation years ending before January 1, 2010.  Section 100 of the Act is also amended so that, for a senior with a qualifying spouse or qualifying common-law partner, the 2009 property and sales tax credit would not begin to be phased out until the senior's adjusted income for the year exceeds $24,750.

New sections 101.1 and 101.2 of the Act provide for the Ontario property tax credit to be paid to qualifying individuals beginning in the 2010 taxation year. The credit is refundable and is based on the individual's occupancy cost for the taxation year.  The credit provides for occupancy cost of up to $250 for non-seniors and $625 for seniors, plus 10 per cent of occupancy cost.  The credit is limited to the occupancy cost for the year and is subject to a maximum of $900 for non-seniors and $1,025 for seniors. The credit is reduced by 2 per cent of adjusted income in excess of $20,000 for single individuals and $25,000 for families.  The credit for seniors may also be reduced if the sum of credit and any senior homeowners' property tax grant received by the taxpayer for the year is greater than occupancy cost for the year.  Consequential amendments are made to sections 144 and 172 of the Act.

New section 101.3 of the Act provides rules relating to the Ontario property tax credit.

New section 104.11 of the Act implements the Ontario sales tax credit.  The credit is refundable and would allow four payments to be made each taxation year to an eligible individual.  The four payments would be made in August and November in the year immediately following the relevant taxation year and in February and May of the second following taxation year.  The first payment will be made in August 2010.  Each payment will equal one quarter of the total of the following:

  (a)   $260 for the individual;

  (b)   $260 if the individual has a qualified relation for the month; and

  (c)   $260 for each of the individual's qualified dependants that the individual has for the month.

The Ontario sales tax credit is reduced by 4 per cent of adjusted income in excess of $20,000 for single individuals and $25,000 for families.  Consequential amendments are made to sections 125, 144 and 172.

New section 104.12 of the Act provides for the payment of an Ontario sales tax transition benefit to eligible individuals.  Section 104.12 provides for the benefit to be paid in three payment months: June 2010, December 2010 and June 2011.  A benefit of $300 would be paid in the three payments ($100 each) to single individuals with adjusted income for the preceding taxation year of $80,000 or less.  This benefit would be phased out where adjusted income exceeds $80,000.  A benefit of $1,000 would be paid in the three payments ($330, $335 and $335) to single parents and to individuals having a spouse or a common law partner, provided that the adjusted income for the preceding taxation year of the parent or individual does not exceed $160,000.  This benefit would be phased out where adjusted income exceeds $160,000.

Technical amendments are made to section 105 of the Act with respect to the calculation of the additional capital gains refund for mutual fund trusts.  These amendments ensure that a mutual fund trust may obtain a refund of basic income tax and surtax paid by the trust in previous taxation years on its capital gains.

Schedule v
teachers' pension Act

The Teachers' Pension Act is amended in connection with changes to the Ontario Teachers' Pension Plan concerning foregone inflation adjustments for members' credited service on or after January 1, 2010.

Currently, section 5 of the Act specifies that contributions to the Plan for a year by the Minister of Education and the employers who contribute under the Plan cannot exceed the contributions by or on behalf of active members of the Plan for their credited service for the year.  Certain exceptions are currently specified.  An additional exception is established by the proposed amendment to section 5.  This additional exception allows the Minister of Education and the employers to make additional contributions to offset the amount by which the inflation adjustments actually received by pensioners have been reduced in a year.

Schedule w
Toronto Futures Exchange Act

The Toronto Futures Exchange Act is repealed.