Bill 44, Budget Measures and Interim Appropriation Act, 2008

Duncan, Hon. Dwight Minister of Finance

Versions

Bill 44 2008

An Act respecting Budget measures, interim appropriations and other matters

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

CONTENTS

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

Contents of this Act

Commencement

Short title

Assessment Act and Consequential Amendments

Capital Investment Plan Act, 1993

City of Toronto Act, 2006

Community Small Business Investment Funds Act

Corporations Tax Act

Education Act

Electricity Act, 1998

Financial Administration Act

Income Tax Act

Interim Appropriation Act, 2008

Land Transfer Tax Act

Liquor Control Act

Ministry of Revenue Act

Ministry of Treasury and Economics Act

Municipal Act, 2001

Ontario Loan Act, 2008

Ontario Lottery and Gaming Corporation Act, 1999

Retail Sales Tax Act

Taxation Act, 2007

Tobacco Tax Act

___________

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

Contents of this Act

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

Commencement

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

Same

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

Same

(3) If a Schedule to this Act provides that any provisions are to come into force on a day to be named by proclamation of the Lieutenant Governor, a proclamation may apply to one or more of those provisions, and proclamations may be issued at different times with respect to any of those provisions.

Short title

3. The short title of this Act is the Budget Measures and Interim Appropriation Act, 2008.

Schedule A
Assessment Act and consequential amendments

1. (1) The definition of "classification" in section 1 of the Assessment Act is repealed and the following substituted:

"classification" means a determination of the class or subclass of real property that land is in, including a class of property prescribed under clause 257.12 (1) (a) of the Education Act, and "classified" has a corresponding meaning; ("classification", "classé")

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

"general reassessment" means the updating of assessments as a result of the application of a new valuation day under subsection 19.2 (1); ("réévaluation générale")

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

Interpretation, appeal

(2) In this Act and in any other Act, and in the regulations made under this Act and under any other Act, a reference to an appeal under section 40 includes a complaint in respect of a taxation year before 2009 made under section 40 as it read before the day section 11 of Schedule A to the Budget Measures and Interim Appropriation Act, 2008 came into force.

2. (1) Subsection 2 (3.2) of the Act is repealed and the following substituted:

Restriction on timing of option

(3.2) If a regulation prescribing classes of real property requires, for land in a municipality to be in a class, that the municipality opt to have the class apply, the municipality may not opt to have the class apply or cease to apply with respect to a taxation year after October 31 of the previous year or such later deadline as the Minister may prescribe either before or after the October 31 deadline has passed.

(2) Subsection 2 (3.3) of the Act is repealed.

(3) Subsection 2 (3.3.1) of the Act is amended by striking out "clause (3.2) (e)" and substituting "subsection (3.2)".

3. Paragraph 18 of subsection 3 (1) of the Act is amended by striking out "for sale to the general public".

4. (1) The definition of "general reassessment" in subsection 19.1 (1) of the Act is repealed.

(2) Clause 19.1 (4) (b) of the Act is repealed and the following substituted:

(b) adjustments resulting from a request for reconsideration, an appeal or an application under section 39.1, 40 or 46;

5. Clause 31 (5) (a) of the Act is repealed and the following substituted:

(a) the last day for making a request for reconsideration or appealing to the Assessment Review Board, as the case may be;

6. Subsection 32 (1) of the Act is repealed and the following substituted:

Correction of errors, etc., in assessment roll

(1) Despite the delivery of any notice provided for by section 31, the assessment corporation at any time before the time fixed for the return of the assessment roll may correct any defect, error, omission or misstatement in any assessment and alter the roll accordingly.

Same, factual error only

(1.1) Despite the delivery of any notice provided for by section 31, for 2009 and subsequent taxation years, the assessment corporation may, at any time during the taxation year, correct any error in the assessment or classification of a property that has resulted from incorrect factual information about the property, and not from a change in opinion as to current value, and the following rules apply:

1. If the land is located in a municipality, the clerk of the municipality shall alter the tax roll upon receiving notice of the correction, and the municipality shall,

i. refund or credit to the owner the amount of any overpayment of taxes and any interest paid by the owner on the amount of the overpayment, or

ii. levy and collect from the owner any additional taxes that have become payable as a result of the correction.

2. If the land is located in non-municipal territory, the Minister shall alter the tax roll upon receiving notice of the correction, and shall,

i. refund or credit to the owner the amount of any overpayment of taxes and any interest paid by the owner on the amount of the overpayment, or

ii. levy and collect from the owner any additional taxes that have become payable as a result of the correction.

7. Subsections 35 (2.1) and (5) of the Act are repealed.

8. Paragraph 3 of subsection 36 (4) of the Act is repealed and the following substituted:

3. The notice must state the date on which the roll will be returned and the last date for making a request for reconsideration or appealing to the Assessment Review Board.

9. Subsection 37 (6) of the Act is repealed and the following substituted:

Adjustment of taxes as result of appeal

(6) No assessment shall be increased, reduced or otherwise altered until all complaints, reconsiderations, appeals or proceedings concerning the assessment have been finally determined and disposed of and, where the result of the final determination and disposition of the complaints, reconsiderations, appeals or proceedings increases, reduces or otherwise alters the assessment, the taxes levied and payable with respect to the assessment shall be adjusted accordingly and any overpayment resulting from the adjustment shall be refunded by the municipality or the Minister, as the case may be.

10. Section 39.1 of the Act is repealed and the following substituted:

Reconsideration of assessment

39.1 (1) For 2009 and subsequent taxation years, the owner of a property or a person who has received or would be entitled to receive a notice of assessment under this Act may request the assessment corporation to reconsider any matter relating to the assessment or classification of the property, including any matter that could form the basis of an appeal under subsection 40 (1), no later than March 31 of the taxation year in respect of which the request is made.

Exception, if time for returning roll is extended

(2) Despite subsection (1), if the assessment corporation extends the time for returning the assessment roll for a taxation year, the last day for making a request for reconsideration in respect of a taxation year after 2008 is 90 days after the return of the assessment roll or March 31 of the taxation year, whichever is later.

Omitted or supplementary assessment

(3) Despite subsections (1) and (2), a person who has received a notice of assessment under subsection 35 (1) may request the assessment corporation to reconsider the assessment within 90 days of the mailing date of the notice of assessment.

Contents of the request

(4) The request must set out the basis for the person's request and all relevant facts.

Reconsideration by assessment corporation

(5) The assessment corporation shall consider the request and, for this purpose, may request further information from the person.

Disclosure

(6) The Minister may make regulations governing the disclosure of information by the assessment corporation and a person making a request under this section.

Notice of reconsideration

(7) For 2009 and subsequent taxation years, the assessment corporation shall mail to the person making a request under subsection (1) the results of its reconsideration by September 30 of the taxation year or, if the assessment corporation and the person agree to an extension, by November 30 of the taxation year.

Same, omitted or supplementary assessment

(8) For 2009 and subsequent taxation years, the assessment corporation shall mail to the person making a request under subsection (3) the results of its reconsideration within 180 days of the request being made.

Notice of settlement

(9) If the assessment corporation and the person making the request agree to a settlement, the assessment corporation shall give notice of the settlement to the clerk of the municipality in which the land is located or to the Minister, if the land is located in non-municipal territory.

Alteration of tax roll

(10) Upon receiving notice of the settlement, the clerk or the Minister, as the case may be, shall alter the tax roll accordingly and taxes shall be levied in accordance with the amended assessment.

Objection to settlement

(11) The following rules apply if the municipality or the Minister, as the case may be, objects to the settlement:

1. The municipality or the Minister, as the case may be, may appeal to the Assessment Review Board within 90 days after receiving notice of the settlement.

2. Section 40 applies, with necessary modifications, as though the assessment roll had been changed to reflect the settlement and the municipality or the Minister appealed the change.

Rights of way

(12) With respect to land referred to in subsection 3 (4) or (5), the only matter a person may request the assessment corporation to reconsider under this section is the number of acres or other measure showing the extent of the land.

Deadlines, 2008 taxation year

(13) The following rules apply for the 2008 taxation year:

1. The owner of a property or a person who has received or would be entitled to receive a notice of assessment under this Act may request the assessment corporation to reconsider any matter relating to the assessment or classification of the property, including any matter that could form the basis of an appeal under subsection 40 (1), no later than December 31, 2008.

2. Despite paragraph 1, a person who has received a notice of assessment under subsection 35 (1) may request the assessment corporation to reconsider the assessment within 90 days of the mailing date of the notice of assessment or by December 31, 2008, whichever is later.

11. Section 40 of the Act is repealed and the following substituted:

Appeal to Assessment Review Board

40. (1) Any person, including a municipality, a school board or, in the case of land in non-municipal territory, the Minister, may appeal in writing to the Assessment Review Board,

(a) on the basis that,

(i) the current value of the person's land or another person's land is incorrect,

(ii) the person or another person was wrongly placed on or omitted from the assessment roll,

(iii) the person or another person was wrongly placed on or omitted from the roll in respect of school support,

(iv) the classification of the person's land or another person's land is incorrect, or

(v) for land, portions of which are in different classes of real property, the determination of the share of the value of the land that is attributable to each class is incorrect; or

(b) on such other basis as the Minister may prescribe.

Appeal requirements, fee

(2) A notice of appeal shall be delivered or mailed to the Assessment Review Board on or before the last day for appealing under subsection (5), (6), (7) or (8), as the case may be, shall state a name and address where notices can be given to the appellant and shall be accompanied by any fee required by the Board.

Precondition of appeal

(3) For 2009 and subsequent taxation years, if a property is in the residential, farm or managed forests property class, or in such other circumstances as the Minister may prescribe, no appeal may be brought to the Assessment Review Board under subsection (1) by a person who is entitled to make a request for reconsideration under section 39.1 in respect of the property, if the person has not made the request within the time required under that section.

Extenuating circumstances

(4) If, in the Board's opinion, there are extenuating circumstances explaining why a request for reconsideration in respect of a property was not made within the time required under section 39.1 by a person who was required to do so as a precondition of appeal under subsection (3), the Board may, on an application by the person during the taxation year, extend the deadline for making a request under that section.

Last day for appealing, if request made under s. 39.1

(5) For 2009 and subsequent taxation years, if a person has made a request for reconsideration in respect of a property under section 39.1, whether or not the person is required to do so as a precondition of appeal under subsection (3), the last day for the person to appeal for a taxation year is 90 days after the notice by the assessment corporation under subsection 39.1 (7) or (8) has been mailed.

Same, if precondition under subs. (3) does not apply

(6) For 2009 and subsequent taxation years, if a person has not made a request for reconsideration in respect of a property under section 39.1 and is not required to do so as a precondition of appeal under subsection (3), the last day for the person to appeal for a taxation year is March 31 of the taxation year.

Exception, if time for returning roll is extended

(7) If the assessment corporation extends the time for returning the assessment roll for a taxation year after 2008, the last day for appealing in respect of a property for a person to whom the precondition of appeal in subsection (3) does not apply is 90 days after the return of the assessment roll or March 31 of the taxation year, whichever is later.

Omitted or supplementary assessment

(8) If a notice of assessment has been mailed under subsection 35 (1) for a property, the last day for appealing for a taxation year for a person who has not made a request for reconsideration in respect of the property under section 39.1 and is not required to do so as a precondition of appeal under subsection (3) is 90 days after the notice is mailed.

Where appeal concerns another person

(9) Where the appeal concerns the assessment of another person,

(a) the notice of appeal shall state a name and address where notices can be given to the person; and

(b) the appellant shall deliver or mail a copy of the notice of appeal to the person within the time limited by subsection (6), (7) or (8), as the case may be.

Copy to assessment corporation

(10) When the Assessment Review Board receives a notice of appeal, it shall forthwith transmit a copy to the assessment corporation.

Parties

(11) The following persons are parties to an appeal:

1. The assessment corporation.

2. All persons appealing and all persons whose assessment is the subject of the appeal.

3. The municipality in which the land is located or, if the land is located in non-municipal territory, the Minister.

Notice of hearing

(12) The Assessment Review Board shall give the parties notice of any hearing at least 14 days before the date fixed for the hearing.

Disclosure

(13) The Minister may make regulations governing the disclosure of information by parties to an appeal.

Adding party

(14) If, before or during the hearing, it appears that another person should be a party to the appeal, the Board shall add the person as a party; if the hearing has already begun, the Board shall adjourn it if necessary and give the person notice of the hearing.

Closing statement

(15) At any hearing, the person or persons whose assessment is the subject of the appeal shall be given the opportunity to make a closing statement after all other parties have made their submissions.

Time for determination of school support

(16) Liability in respect of public or separate school support shall be determined in accordance with the circumstances existing at the time the appeal was brought.

Burden of proof

(17) For 2009 and subsequent taxation years, where value is a ground of appeal, the burden of proof as to the correctness of the current value of the land rests with the assessment corporation.

Same, non-co-operation

(18) Despite subsection (17), the burden of proof as to the correctness of the current value of the land rests with the appellant where he or she fails or refuses,

(a) to give the assessment corporation reasonable opportunity to inspect the property under section 10; or

(b) to comply with a request for information and documentation under section 11.

Board to make determination

(19) After hearing the evidence and the submissions of the parties, the Board shall determine the matter.

Alteration of assessment roll, municipality

(20) If the land is located in a municipality, the Board shall forward its decision to the clerk of the municipality and the clerk shall forthwith,

(a) alter the assessment roll in accordance with the decisions of the Board from which no further appeal is taken;

(b) indicate on the roll that the alteration has been made; and

Same, non-municipal territory

(21) If the land is located in non-municipal territory, the Board shall forward its decision to the Minister and the Minister shall alter the assessment roll in accordance with the decisions of the Board from which no further appeal is taken, indicate on the roll that the alteration has been made and complete the roll by totalling the amounts of the assessments in the roll and inserting the total.

Power to determine law and fact

(22) The Assessment Review Board, as to all matters within its jurisdiction under this section, has authority to hear and determine all questions of law or of fact and a decision of the Board under this section is final and binding unless it is appealed under section 43.1.

Rights of way

(23) With respect to land referred to in subsection 3 (4) or (5), the only matter that may form the basis of an appeal to the Assessment Review Board under this section is the correctness of the number of acres or other measure showing the extent of the land.

Deemed appeals, 2006, etc.

(24) If an appeal relates to the 2006 taxation year, the appellant shall be deemed to have brought the same appeal,

(a) in relation to assessments under sections 33 and 34 for the 2006 taxation year;

(b) in relation to the assessment, including assessments under sections 33 and 34, for the 2007 taxation year if the 2006 appeal is not finally disposed of before the last day for appealing with respect to the 2007 taxation year; and

(c) in relation to the assessment, including assessments under sections 33 and 34, for the 2008 taxation year if the 2006 appeal is not finally disposed of before March 31, 2008 or, if an assessment has been made under section 33 or 34, before the 90th day after the notice of assessment was mailed.

Deemed appeals, 2007, etc.

(25) If an appeal relates to the 2007 taxation year and subsection (24) does not apply, the appellant shall be deemed to have brought the same appeal,

(a) in relation to assessments under sections 33 and 34 for the 2007 taxation year; and

(b) in relation to the assessment, including assessments under sections 33 and 34, for the 2008 taxation year if the 2007 appeal is not finally disposed of before March 31, 2008 or, if an assessment has been made under section 33 or 34, before the 90th day after the notice of assessment was mailed.

Deemed appeals, 2009 and subsequent years

(26) For 2009 and subsequent taxation years, an appellant shall be deemed to have brought the same appeal in respect of a property,

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

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

Deemed appeals, notice requirement

(27) If the appeal concerns the assessment of another person, the appellant is required to comply with subsection (9) only at the time of bringing the original appeal, not each time the appeal is deemed to be brought again.

Change of ownership

(28) For the purposes of subsections (24), (25) and (26), if an appeal is brought in respect of a property, the appellant is the owner of the property and there is a change of ownership before the appeal for the year is finally disposed of, the reference to the appellant in the subsection shall be deemed to be a reference to the owner of the property at the relevant time.

12. Clause 40.1 (b) of the Act is repealed and the following substituted:

(b) if alteration of assessed values or classification of land is involved, the Board may extend the time for bringing appeals and direct the assessment corporation to be the appellant.

13. Subsection 44 (2) of the Act is repealed and the following substituted:

Reference to similar lands in vicinity

(2) For taxation years before 2009, in determining the value at which any land shall be assessed, reference shall be had to the value at which similar lands in the vicinity are assessed.

Same, 2009 and subsequent years

(3) For 2009 and subsequent taxation years, in determining the value at which any land shall be assessed, the Board shall,

(a) determine the current value of the land; and

(b) have reference to the value at which similar lands in the vicinity are assessed and adjust the assessment of the land to make it equitable with that of similar lands in the vicinity if such an adjustment would result in a reduction of the assessment of the land.

14. Section 45 of the Act is repealed and the following substituted:

Powers and functions of Assessment Review Board

45. Upon an appeal with respect to an assessment, the Assessment Review Board may review the assessment and, for the purpose of the review, has all the powers and functions of the assessment corporation in making an assessment, determination or decision under this Act, and any assessment, determination or decision made on review by the Assessment Review Board shall be deemed to be an assessment, determination or decision of the assessment corporation and has the same force and effect.

15. Subsection 46 (1.1) of the Act is amended by striking out "a complaint" and substituting "an appeal".

16. Section 49 of the Act is repealed and the following substituted:

Defence limited in actions to collect taxes, etc.

49. No matter that could have been raised by way of appeal to the Assessment Review Board or in a proceeding with respect to an assessment in a court within the times limited for bringing the appeal or proceeding under this Act shall be raised by way of defence in any proceeding brought by or on behalf of a municipality or, in the case of land in non-municipal territory, by the Minister.

Consequential Amendments

Assessment Review Board Act

17. (1) Section 8.2 of the Assessment Review Board Act is repealed and the following substituted:

Dismissal

8.2 (1) The Board, on its own motion or on the motion of any party, may dismiss a complaint or appeal brought before it if,

(a) the Board is of the opinion that the proceeding is frivolous or vexatious, is commenced in bad faith or is commenced only for the purpose of delay;

(b) the Board is of the opinion that the reasons set out in the complaint or appeal do not disclose any apparent statutory ground on which the Board can make a decision; or

(c) the complainant or appellant has not responded to a request by the Board for further information within the time specified by the Board.

Opportunity to respond

(2) Before dismissing a complaint or an appeal under clause (1) (a) or (b), the Board shall notify the complainant or appellant and give the complainant or appellant an opportunity to make representations in respect of the proposed dismissal.

Same

(3) Before dismissing a complaint or appeal under clause (1) (c), the Board shall notify the complainant or appellant and give the complainant or appellant an opportunity to respond to the request for further information.

No hearing required

(4) Despite the Statutory Powers Procedure Act, the Board may dismiss a complaint or appeal in accordance with this section after holding a hearing or without holding a hearing, as the Board considers appropriate.

(2) Section 9 of the Act, as re-enacted by the Statutes of Ontario, 2006, chapter 33, Schedule Z.3, section 3, is repealed and the following substituted:

Sittings of the Board

9. The Board shall hold sittings at such place or places in a county or district or a metropolitan, regional or district municipality or in territory without municipal organization as the chair from time to time may designate for the purpose of hearing and deciding all complaints and appeals relating to assessments in municipalities within the county or district or the metropolitan, regional or district municipality or in the territory without municipal organization in respect of which a person may complain or appeal to the Board under the Assessment Act or any other Act.

Condominium Act, 1998

18. Subsections 56 (4) and (5) of the Condominium Act, 1998 are repealed and the following substituted:

Assessment appeal

(4) If the board has made a by-law under clause (1) (f), the corporation shall have the capacity and authority to appeal under section 40 of the Assessment Act on behalf of owners but shall not be liable for an alteration in the assessment of a unit or for any other matter relating to the appeal, except for the costs of the appeal.

Same

(5) Despite a by-law made under clause (1) (f), on written notice to the board and to the Assessment Review Board given before the hearing of an appeal under section 40 of the Assessment Act, an owner may withdraw an appeal that the corporation has made on the owner's behalf.

Conservation Authorities Act

19. Subsections 33 (5) and (6) of the Conservation Authorities Act are repealed and the following substituted:

Appeal to the Assessment Review Board

(5) The authority or the municipality may appeal to the Assessment Review Board under section 40 of the Assessment Act and the last day for appealing is the day that is 90 days after the authority or the clerk of the municipality, as applicable, is notified.

Assessment Act to apply

(6) The Assessment Act applies, with necessary modifications, with respect to a request for a reconsideration or an appeal.

Provincial Land Tax Act, 2006

20. Section 18 of the Provincial Land Tax Act, 2006 is amended by striking out "a complaint" in the portion before clause (a) and substituting "an appeal".

Commencement

21. (1) Subject to subsections (2) and (3), this Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2008 receives Royal Assent.

Same

(2) Subsection 1 (1) is deemed to have come into force on January 1, 2007.

Same

(3) Subsection 17 (2) and section 20 come into force on January 1, 2009.

Schedule B
Capital Investment Plan Act, 1993

1. Sections 66 and 67 of the Capital Investment Plan Act, 1993 are repealed and the following substituted:

Expenditures

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

Grants

67. (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.

Commencement

2. This Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2008 receives Royal Assent.

Schedule C
City of Toronto Act, 2006

1. Subsections 282 (15) and (16) of the City of Toronto Act, 2006 are amended by striking out "a complaint" wherever it appears and substituting in each case "an appeal".

2. Paragraph 2 of subsection 291 (4) of the Act is amended by striking out "A complaint" at the beginning and substituting "An appeal".

3. Subsection 294 (13) of the Act is repealed and the following substituted:

Deemed appeal under s. 40 of Assessment Act

(13) Section 40 of the Assessment Act applies to a complaint under subsection (11) or (12) as if it were an appeal under subsection 40 (1) of that Act.

4. Clause 309 (3) (a) of the Act is repealed and the following substituted:

(a) prescribing information that must or that may be included on or with tax bills under section 308 and prohibiting other information from being included on the tax bill without the express authorization of the Minister;

5. (1) Subsection 325 (5) of the Act is repealed and the following substituted:

Restriction

(5) Despite subsection (3), an application shall not be made for taxes levied in a year if the assessment on the land for that year was subject to an appeal or application under section 40 or 46 of the Assessment Act unless,

(a) the error is made subsequent to the commencement of all appeals or applications;

(b) the appeal or application,

(i) is made by a person other than the taxpayer,

(ii) is withdrawn before the appeal or application is actually heard,

(iii) is made in respect of a change to or the addition of the school support of the taxpayer on or to the assessment roll, or

(iv) is made in respect of a change to the name or mailing address of the taxpayer on the assessment roll; or

(2) Subsection 325 (13) of the Act is repealed and the following substituted:

Regulations

(13) The Minister of Municipal Affairs and Housing may make regulations prescribing classes of appeals or applications for the purpose of clause (5) (c).

6. Subsection 329 (10) of the Act is amended by striking out "a complaint" in the portion before paragraph 1 and substituting "an appeal".

7. Subsection 331 (17) of the Act is repealed and the following substituted:

Same

(17) Section 40 of the Assessment Act applies to a complaint under subsection (14), (15) or (24) as if it were an appeal under subsection 40 (1) of that Act, except that the assessment corporation shall not be a party for the purposes of subsection 40 (11) of that Act.

8. Section 335 of the Act is amended by striking out "a complaint" and substituting "an appeal".

Commencement

9. This Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2008 receives Royal Assent.

Schedule D
Community Small Business Investment Funds Act

1. Subsection 16.1 (7) of the Community Small Business Investment Funds Act is repealed and the following substituted:

Definition

(7) In this section,

"eligible year" means a calendar year after 2000 and before 2013.

2. (1) Subsection 17 (1.2) of the Act is amended by striking out "December 31 of each year after 2004 and before 2012" in the portion before the definition of "A" and substituting "December 31 of each year after 2004 and before 2013".

(2) Subsection 17 (1.3) of the Act is amended,

(a) by striking out "December 31 of each year after 2011" in the portion before the definition of "A" and substituting "December 31 of each year after 2012"; and

(b) by striking out "before the 61st day of 2011" in the definition of "A" and substituting "before the 61st day of 2012".

3. (1) Subsection 25 (3) of the Act is amended by striking out "2011" and substituting "2012".

(2) Paragraph 7 of subsection 25 (4) of the Act is amended by striking out "2009" in the portion before subparagraph i and substituting "2007".

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

7.0.1 If the corporation is a research oriented investment fund during the calendar year in which it issues the Class A shares referred to in subsection (3), the amount of the tax credit deductible in determining the amount of tax payable under the Income Tax Act for any taxation year that is after 2006 but ends before 2010 is the lesser of,

i. $1,500, and

ii. an amount equal to 20 per cent of the equity capital received by the corporation from the eligible investor, or from a qualifying trust for the eligible investor, for Class A shares issued by the corporation that are purchased after the end of the preceding taxation year and before the day that is 61 days after the end of the taxation year, excluding any portion of the equity capital that was taken into consideration in determining the amount of a tax credit for the preceding year.

(4) Paragraph 7.1 of subsection 25 (4) of the Act is amended by striking out "2009" in the portion before subparagraph i and substituting "2010".

(5) Subparagraph 7.1 i of subsection 25 (4) of the Act is amended by striking out "$750" and substituting "$1,125".

(6) Paragraph 7.2 of subsection 25 (4) of the Act is amended by striking out "2010" in the portion before subparagraph i and substituting "2011".

(7) Subparagraph 7.2 i of subsection 25 (4) of the Act is amended by striking out "$500" and substituting "$750".

(8) Paragraph 8 of subsection 25 (4) of the Act is amended by striking out "2009" in the portion before subparagraph i and substituting "2007".

(9) Subsection 25 (4) of the Act is amended by adding the following paragraph:

8.0.1 If the corporation is not a research oriented investment fund during the calendar year in which it issues the Class A shares referred to in subsection (3), the amount of the tax credit deductible in determining the amount of tax payable under the Income Tax Act for any taxation year that is after 2006 but ends before 2010 is the lesser of,

i. $1,125, and

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

(10) Paragraph 8.1 of subsection 25 (4) of the Act is amended by striking out "2009" in the portion before subparagraph i and substituting "2010".

(11) Subparagraph 8.1 i of subsection 25 (4) of the Act is amended by striking out "$500" and substituting "$750".

(12) Paragraph 8.2 of subsection 25 (4) of the Act is amended by striking out "2010" in the portion before subparagraph i and substituting "2011".

(13) Subparagraph 8.2 i of subsection 25 (4) of the Act is amended by striking out "$250" and substituting "$375".

Commencement

4. (1) Subject to subsection (2), this Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2008 receives Royal Assent.

Same

(2) Section 3 is deemed to have come into force on January 1, 2007.

SCHEDULE E
CORPORATIONS TAX ACT

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

(a) each of the provisions contained in Part XVII of the Income Tax Act (Canada) applies for the purposes of this Act unless otherwise provided in this Act;

2. Subsection 41 (3.2) of the Act is amended by striking out "and" at the end of clause (d) and by striking out clause (e) and substituting the following:

(e) $400,000 multiplied by the ratio of the number of days in the taxation year that are after December 31, 2003 and before January 1, 2007 to the total number of days in the taxation year; and

(f) $500,000 multiplied by the ratio of the number of days in the taxation year that are after December 31, 2006 and before January 1, 2009 to the total number of days in the taxation year.

3. Clause 41.1 (3) (f) of the Act is repealed and the following substituted:

(f) 4.667 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2002 and before January 1, 2007 to the total number of days in the taxation year; and

(g) 4.25 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2006 and before January 1, 2009 to the total number of days in the taxation year.

4. (1) Subsection 43.3 (3.2) of the Act is amended by striking out "without the application of this subsection" in the portion before the formula and substituting "without the application of paragraph 125 (5) (b) of the Income Tax Act (Canada) and this subsection".

(2) The definition of "C" in subsection 43.3 (3.2) of the Act is amended by striking out "without the application of this subsection" and substituting "without the application of paragraph 125 (5) (b) of the Income Tax Act (Canada) and this subsection".

5. (1) Subsection 43.5 (4.1) of the Act is repealed and the following substituted:

Eligible credit for first-time production

(4.1) A qualifying production company's eligible credit for a taxation year in respect of a first-time production for which principal photography commences after October 31, 1997 is the sum of the amounts determined under subsections (4.2), (4.3) and (4.3.1) in respect of the production.

(2) Subsection 43.5 (4.2) of the Act is repealed and the following substituted:

Same, expenditures incurred before 2005

(4.2) The amount determined under this subsection in respect of a first-time production for the purposes of subsection (4.1) is the sum of the amounts determined under the following paragraphs for the portion of the qualifying production company's qualifying labour expenditure for the production that relates to expenditures incurred before January 1, 2005:

1. 30 per cent of the lesser of,

i. the amount, if any, by which $240,000 exceeds the total of the company's qualifying labour expenditures for the production for previous taxation years, and

ii. the company's qualifying labour expenditure for the taxation year for the production.

2. 20 per cent of the amount, if any, by which the company's qualifying labour expenditure for the taxation year for the production exceeds the lesser of the amounts, if any, determined under subparagraphs 1 i and ii.

3. If the production is a regional Ontario production, 10 per cent of the company's qualifying labour expenditure for the taxation year for the production incurred after May 2, 2000.

(3) Subsection 43.5 (4.3) of the Act is repealed and the following substituted:

Same, expenditures incurred after 2004 and before 2008

(4.3) The amount determined under this subsection in respect of a first-time production for the purposes of subsection (4.1) is the sum of the amounts determined under the following paragraphs for the portion of the qualifying production company's qualifying labour expenditure for the production that relates to expenditures incurred after December 31, 2004 and before January 1, 2008:

1. 40 per cent of the lesser of,

i. the amount, if any, by which $240,000 exceeds the sum of,

A. the total of the company's qualifying labour expenditures for the production for previous taxation years, and

B. the lesser of the amounts, if any, determined under subparagraphs 1 i and ii of subsection (4.2) for the production for the taxation year, and

ii. the company's qualifying labour expenditure for the taxation year for the production.

2. 30 per cent of the amount, if any, by which the company's qualifying labour expenditure for the taxation year for the production exceeds the lesser of the amounts, if any, determined under subparagraphs 1 i and ii.

3. If the production is a regional Ontario production, 10 per cent of the company's qualifying labour expenditure for the taxation year for the production.

(4) Section 43.5 of the Act is amended by adding the following subsection:

Same, expenditures incurred after 2007

(4.3.1) The amount determined under this subsection in respect of a first-time production for the purposes of subsection (4.1) is the sum of the amounts determined under the following paragraphs for the portion of the qualifying production company's qualifying labour expenditure for the production that relates to expenditures incurred after December 31, 2007 and in a taxation year that ends before January 1, 2009:

1. 40 per cent of the lesser of,

i. the amount, if any, by which $240,000 exceeds the sum of,

A. the total of the company's qualifying labour expenditures for the production for previous taxation years, and

B. the lesser of the amounts, if any, determined under subparagraphs 1 i and ii of subsection (4.3) for the production for the taxation year, and

ii. the company's qualifying labour expenditure for the taxation year for the production.

2. 35 per cent of the amount, if any, by which the company's qualifying labour expenditure for the taxation year for the production exceeds the lesser of the amounts, if any, determined under subparagraphs 1 i and ii.

3. If the production is a regional Ontario production, 10 per cent of the company's qualifying labour expenditure for the taxation year for the production.

(5) Subsection 43.5 (4.4) of the Act is amended by striking out "paragraph 1, 2 or 3 of subsection (4.2) or paragraph 1, 2 or 3 of subsection (4.3)" and substituting "paragraph 1, 2 or 3 of subsection (4.3.1)".

(6) Subsections 43.5 (6.1) and (6.1.1) of the Act are repealed and the following substituted:

Productions commenced after October 31, 1997 other than first‑time productions

(6.1) Subject to subsection (6.1.1), the eligible credit of a qualifying production company for a taxation year in respect of an eligible Ontario production that is not a first-time production and for which principal photography commences after October 31, 1997 is the sum of,

(a) 20 per cent of the company's qualifying labour expenditure for the year in respect of the production, as determined in relation to expenditures that are incurred before January 1, 2005 and included in the Ontario labour expenditure for the year in respect of the production;

(b) 30 per cent of the company's qualifying labour expenditure for the year in respect of the production, as determined in relation to expenditures incurred after December 31, 2004 and before January 1, 2008 that are included in the Ontario labour expenditure for the year in respect of the production; and

(c) 35 per cent of the company's qualifying labour expenditure for the year in respect of the production, as determined in relation to expenditures incurred after December 31, 2007 and in a year that ends before January 1, 2009 that are included in the Ontario labour expenditure for the year in respect of the production.

Same, regional Ontario production

(6.1.1) The eligible credit of a qualifying production company for a taxation year that ends after May 2, 2000 in respect of an eligible Ontario production that is a regional Ontario production but is not a first-time production is the sum of,

(a) 30 per cent of the company's qualifying labour expenditure for the year for the production, as determined in relation to expenditures incurred after May 2, 2000 and before January 1, 2005 that are included in the Ontario labour expenditure for the year in respect of the production;

(b) 40 per cent of the company's qualifying labour expenditure for the year for the production, as determined in relation to expenditures incurred after December 31, 2004 and before January 1, 2008 that are included in the Ontario labour expenditure for the taxation year in respect of the production; and

(c) 45 per cent of the company's qualifying labour expenditure for the year for the production, as determined in relation to expenditures incurred after December 31, 2007 and in a year that ends before January 1, 2009 that are included in the Ontario labour expenditure for the year in respect of the production.

(7) Subsection 43.5 (22) of the Act is repealed and the following substituted:

Regulations

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

(a) prescribing a percentage for the purposes of paragraph 1, 2 or 3 of subsection (4.3.1) for 2008 or any period of time in 2008;

(b) prescribing a percentage for the purposes of clause (6.1) (c) for 2008 or any period of time in 2008;

6. (1) Clauses 43.10 (4) (b) and (c) of the Act are repealed and the following substituted:

(b) 18 per cent of the portion of its qualifying Ontario labour expenditure in respect of the production for the taxation year that relates to expenditures incurred after December 31, 2004 and before January 1, 2008;

(c) 25 per cent of the portion of its qualifying Ontario labour expenditure in respect of the production for the taxation year that relates to expenditures incurred after December 31, 2007 and in a taxation year that ends before January 1, 2009; and

(2) Subsection 43.10 (4.1) of the Act is amended by striking out "clause (4) (b) or (4) (c)" and substituting "clause (4) (c)".

(3) Subsection 43.10 (15.1) of the Act is repealed and the following substituted:

Regulations

(15.1) The Lieutenant Governor in Council may make regulations prescribing a percentage for the purposes of clause (4) (c) and the period of time after December 31, 2007 and before January 1, 2009 to which it applies.

7. (1) Subsection 43.11 (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) if the corporation is a qualifying small corporation, the sum of,

(i) 10 per cent of the amount that would be determined under subclause (4) (b) (i) for the taxation year if the amounts referred to in that subclause were determined by reference only to expenditures incurred after March 23, 2006 and before January 1, 2009, and

(ii) 5 per cent of the amount that would be determined under clause (4) (a) for the taxation year if the amounts referred to in that clause were determined by reference only to expenditures incurred after March 25, 2008 and before January 1, 2009; and

(c) if the corporation is not a qualifying small corporation, 5 per cent of the amount that would be determined under subsection (4) if the amounts referred to in that subsection were determined by reference only to expenditures incurred after March 25, 2008 and before January 1, 2009.

(2) Clause 43.11 (4) (a) of the Act is amended by striking out "January 1, 2010" and substituting "January 1, 2009".

(3) Subclause 43.11 (4) (b) (ii) of the Act is amended by striking out "January 1, 2010" and substituting "January 1, 2009".

(4) The definition of "C" in the definition of "B" in subsection 43.11 (5) of the Act is repealed and the following substituted:

"C" is the total 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 eligible 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 eligible 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

8. (1) Subsection 57.1 (1) of the Act is amended by adding the following definitions:

"excluded mark-to-market property" means, in respect of a corporation, property, other than specified mark-to-market property, held by the corporation and in respect of which,

(a) any mark-to-market changes recognized under generally accepted accounting principles from the beginning to the end of a taxation year of the corporation would be reflected in the calculation of the corporation's income for the taxation year for the purposes of Part II if the property were held by the corporation throughout the taxation year, or

(b) if the property is denominated in a foreign currency, any change under generally accepted accounting principles in the value of that currency relative to Canadian currency from the beginning to the end of a taxation year of the corporation would be reflected in the calculation of the corporation's income for the taxation year for the purposes of Part II if the property were held by the corporation throughout the taxation year; ("bien évalué à la valeur du marché qui est exclu")

"fair value" means, in respect of property of a corporation, the amount determined in accordance with generally accepted accounting principles that is the fair value of the property to the corporation, expressed in Canadian currency; ("juste valeur")

"mark-to-market changes" means, with respect to a specified mark-to-market property or excluded mark-to-market property held by a corporation, changes in the fair value of the property that occur after the corporation acquires the property and before the corporation disposes of the property; ("variation de l'évaluation à la valeur du marché")

"specified mark-to-market property" means, in respect of a corporation, property, other than excluded mark-to-market property, held by the corporation and in respect of which,

(a) any mark-to-market changes recognized under generally accepted accounting principles from the beginning to the end of a taxation year of the corporation would be reflected in the calculation of the corporation's net income for the taxation year for the purposes of this Part if the property were held by the corporation throughout the taxation year, or

(b) if the property is denominated in a foreign currency, any change under generally accepted accounting principles in the value of that currency relative to Canadian currency from the beginning to the end of a taxation year of the corporation would be reflected in the calculation of the corporation's net income for the taxation year for the purposes of this Part if the property were held by the corporation throughout the taxation year; ("bien évalué à la valeur du marché qui est déterminé")

(2) The definition of "total assets" in subsection 57.1 (1) of the Act is repealed and the following substituted:

"total assets" means, subject to subsection (1.1), the amount that would be shown on a corporation's balance sheet at the end of a taxation year as the corporation's total assets if the balance sheet were prepared in accordance with generally accepted accounting principles, except that the consolidation and equity methods of accounting are not to be used; ("actif total")

(3) Section 57.1 of the Act is amended by adding the following subsection:

Adjustment to total assets re: specified mark-to-market property

(1.1) The amount in respect of a specified mark-to-market property to be included in the total assets of a corporation for a taxation year for the purposes of this Part is determined without reference to mark-to-market changes with respect to the specified mark-to-market property if,

(a) the taxation year ends after March 22, 2007; or

(b) the taxation year begins after June 30, 2004 and ends before March 23, 2007, and the corporation made an election before February 26, 2008 to have section 1 of Ontario Regulation 509/07 (Corporate Minimum Tax) made under this Act apply to all of the corporation's taxation years beginning after June 30, 2004 and ending before March 23, 2007.

(4) Subsection 57.1 (5) of the Act is amended by adding "Subject to subsection (5.1)" at the beginning.

(5) Section 57.1 of the Act is amended by adding the following subsections:

Exception for total assets

(5.1) The amount in respect of a specified mark-to-market property to be included in the total assets of a partnership for a fiscal period for the purposes of applying subsection (4) to a corporation for a taxation year is determined without reference to any mark-to-market change with respect to the specified mark-to-market property if,

(a) the taxation year of the corporation ends after March 22, 2007; or

(b) the taxation year of the corporation begins after June 30, 2004 and ends before March 23, 2007 and the corporation made an election before February 26, 2008 to have section 1 of Ontario Regulation 509/07 (Corporate Minimum Tax) made under this Act apply to all of the corporation's taxation years beginning after June 30, 2004 and ending before March 23, 2007.

Same

(5.2) For the purposes of subsection (5.1), any mark-to-market changes with respect to property of a partnership are determined as if the partnership were a corporation and its fiscal period were a taxation year.

9. (1) Subsection 57.4 (1) of the Act is repealed and the following substituted:

Adjusted net income or loss

(1) In this Part, a corporation's adjusted net income for a taxation year is the amount, if any, by which, "A" exceeds "B" and its adjusted net loss for a taxation year is the amount, if any, by which "B" exceeds "A", where,

"A" is the sum of,

(a) the amount of the corporation's net income, if any, for the taxation year,

(b) if the corporation would have been entitled to exclude a gain from its taxable income earned in Canada under subsection 37 (2) in respect of the disposition of taxable Canadian property, the amount of any loss in respect of the disposition to the extent the loss has been taken into consideration in the calculation of the corporation's net income or net loss, as the case may be, for the taxation year,

(c) all amounts included in the computation of the corporation's income for the purposes of Part II by reason of section 135 of the Income Tax Act (Canada), as made applicable by Part II, to the extent the amounts have not been taken into consideration in the calculation of the corporation's net income or net loss, as the case may be, for the taxation year or a prior taxation year, and

(d) such other amounts as may be determined in accordance with the regulations, and

"B" is the sum of,

(a) the amount of the corporation's net loss, if any, for the taxation year,

(b) the total amount of the payments made pursuant to allocations in proportion to patronage to the extent that the amount is deductible under section 135 of the Income Tax Act (Canada) in computing the corporation's income for the taxation year for the purposes of that Act, and has not been deducted in computing the corporation's net income or net loss, as the case may be, for the taxation year,

(c) each of the following amounts to the extent it has been included in the computation of the corporation's net income or net loss, as the case may be, for the year:

(i) an amount received or receivable by the corporation during the taxation year that is deductible as an amount in respect of a dividend under section 112 or 113 or subsection 138 (6) of the Income Tax Act (Canada), as made applicable under Part II, in determining the corporation's taxable income for the taxation year in which the amount is received by the corporation,

(ii) an amount in respect of a dividend received or receivable by the corporation during the taxation year that is excluded under subsection 83 (2) of the Income Tax Act (Canada) in the computation of the income of the corporation for the purposes of Part I of that Act,

(iii) if the corporation is entitled to exclude an amount from its taxable income earned in Canada under subsection 37 (2) in respect of the disposition of taxable Canadian property, the amount of any gain in respect of the disposition,

(iv) the amount, if any, of the corporation's income for the taxation year described in paragraph 81 (1) (c) of the Income Tax Act (Canada), and

(v) the amount of any gain in respect of the disposition of property by the corporation after May 1, 2006, if the disposition is described in subparagraph 38 (a.1) (i) or (a.2) (i) of the Income Tax Act (Canada),

(d) an amount equal to 9/4 of the amount of tax payable by the corporation for the taxation year under subsection 191.1 (1) of the Income Tax Act (Canada) if the taxation year ends before January 1, 2003,

(e) an amount equal to three times the amount of tax payable by the corporation for the taxation year under subsection 191.1 (1) of the Income Tax Act (Canada) if the taxation year ends after December 31, 2002, and

(f) such other amounts as may be determined in accordance with the regulations.

(2) Subsection 57.4 (2) of the Act is repealed.

10. (1) Section 57.5 of the Act is amended by adding the following subsection:

Exception

(8.1) If an amalgamation of two or more predecessor corporations occurs after March 21, 2007, subsection (8) does not apply in determining for the purposes of the amalgamated corporation an amount in respect of one of the predecessor corporations if that predecessor corporation was controlled at any time before the amalgamation by any of the other predecessor corporations.

(2) Subsection 57.5 (9) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Winding-up

(9) If the rules in subsection 88 (1) of the Income Tax Act (Canada) apply to the winding-up of a subsidiary corporation that was completed before March 22, 2007, the parent corporation is deemed to be the same corporation as and a continuation of the subsidiary corporation for the purposes of determining the amount of the parent corporation's,

. . . . .

11. (1) Subsection 66 (1.1) of the Act is amended by adding "and" at the end of clause (a) and by striking out clauses (a.1), (b) and (c) and substituting the following:

(b) 0.225 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2006 and before January 1, 2009 to the total number of days in the taxation year.

(2) Subsection 66 (1.2) of the Act is repealed and the following substituted:

No tax payable after December 31, 2008

(1.2) No tax is payable under this Part by a corporation that is not a financial institution for a taxation year ending after December 31, 2008.

(3) The definition of "G" in subsection 66 (4.1) of the Act is repealed and the following substituted:

"G" is the sum of,

(a) 0.6 per cent multiplied by the ratio of the number of days in the taxation year that are before January 1, 2007 to the total number of days in the taxation year, and

(b) 0.45 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2006 and before January 1, 2009 to the total number of days in the taxation year, and

(4) The definition of "J" in subsection 66 (4.2) of the Act is repealed and the following substituted:

"J" is the sum of,

(a) 0.9 per cent multiplied by the ratio of the number of days in the taxation year that are before January 1, 2007 to the total number of days in the taxation year, and

(b) 0.675 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2006 and before January 1, 2009 to the total number of days in the taxation year, and

(5) The definition of "L" in subsection 66 (4.3) of the Act is repealed and the following substituted:

"L" is the sum of,

(a) 0.72 per cent multiplied by the ratio of the number of days in the taxation year that are before January 1, 2007 to the total number of days in the taxation year, and

(b) 0.54 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2006 and before January 1, 2009 to the total number of days in the taxation year, and

(6) Subsection 66 (4.4) of the Act is repealed and the following substituted:

No tax payable after December 31, 2008 by financial institution

(4.4) No tax is payable under this Part by a financial institution for a taxation year ending after December 31, 2008.

12. The definition of "D" in clause 66.1 (3.2) (b) of the Act is repealed and the following substituted:

"D" is the sum of,

(a) 0.9 per cent multiplied by the ratio of the number of days in the taxation year that are before January 1, 2007 to the total number of days in the taxation year, and

(b) 0.675 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2006 and before January 1, 2009 to the total number of days in the taxation year.

13. Section 72 of the Act is amended by striking out the portion before the clauses and substituting the following:

Apportionment of capital tax, short year

72. Where a corporation has a taxation year of less than 365 days, the amount of tax payable by it under this Part for the year shall be determined by multiplying the amount of tax that would otherwise be determined for the year before the application of section 72.1 by the ratio of the number of days in the taxation year to 365, except that this section does not apply,

. . . . .

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

Capital tax relief for manufacturers

Application

72.1 (1) This section applies to a corporation for a taxation year despite any other provision of this Part if,

(a) the taxation year ends after December 31, 2006 and before January 1, 2009;

(b) the corporation would, but for this section, be liable to tax determined under this Part for the year because it is a corporation whose taxable paid-up capital or its taxable paid-up capital employed in Canada, as the case may be, for the year is determined under Division B or C; and

(c) the corporation's Ontario manufacturing labour cost for the taxation year is more than 20 per cent of its total Ontario labour cost for the year.

Capital tax exemption

(2) If the corporation's Ontario manufacturing labour cost for the year is at least 50 per cent of its total Ontario labour cost for the year, its total liability for tax under this Part for the year is calculated using the formula:

in which,

"A" is the amount of tax that would, but for this section, be payable by the corporation under this Part for the year,

"B" is the number of days in the taxation year that are before January 1, 2007,

"C" is,

(a) nil if,

(i) the corporation has a permanent establishment in Ontario on March 25, 2008 to which employees of the corporation report, or

(ii) the corporation is a designated corporation with respect to a particular corporation and, on March 25, 2008, the particular corporation has a permanent establishment in Ontario to which employees of the particular corporation report, or

(b) the number of days in the taxation year that are after December 31, 2006 and before January 1, 2008 in any other case, and

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

Capital tax reduction

(3) If the corporation's Ontario manufacturing labour cost for the year is less than 50 per cent but more than 20 per cent of its total Ontario labour cost for the year, its liability for tax under this Part for the year is reduced by the amount calculated using the formula:

in which,

"A" is the amount of tax that would, but for this section, be payable by the corporation under this Part for the year,

"E" is the percentage that its Ontario manufacturing labour cost for the year is of its total Ontario labour cost for the year, expressed in decimals,

"F" is the number of days in the taxation year that are after December 31, 2007,

"G" is the number of days in the taxation year that are in 2007,

"H" is,

(a) one if,

(i) the corporation has a permanent establishment in Ontario on March 25, 2008 to which employees of the corporation report, or

(b) nil, in any other case, and

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

Designated corporation

(4) For the purposes of subsections (2) and (3), a corporation is a designated corporation with respect to a particular corporation if it is,

(a) a corporation that amalgamated with one or more other corporations to form the particular corporation, if section 87 of the Income Tax Act (Canada) applies to the amalgamation;

(b) a corporation that wound up into the particular corporation, if subsection 88 (1) of the Income Tax Act (Canada) applies to the winding-up; or

(c) a corporation that is a designated corporation with respect to a corporation that is itself a designated corporation with respect to the particular corporation.

Ontario manufacturing labour cost

(5) For the purposes of this section, a corporation's Ontario manufacturing labour cost for a taxation year is the amount that would be its cost of manufacturing and processing labour for the year under Part LII (Canadian Manufacturing and Processing Profits) of the regulations made under the Income Tax Act (Canada) if,

(a) the activities described in paragraphs (a), (b), (e), (f), (g) and (l) of the definition of "manufacturing or processing" in subsection 125.1 (3) of that Act were included in determining what constituted qualified activities under Part LII of those regulations;

(b) references in Part LII of those regulations to qualified activities carried out in Canada were read instead as references to qualified activities carried out in Ontario;

(d) paragraph (f) of the definition of "cost of labour" in section 5204 of those regulations did not apply.

Total Ontario labour cost

(6) For the purposes of this section, a corporation's total Ontario labour cost for a taxation year is the amount that would be its cost of labour for the year under Part LII (Canadian Manufacturing and Processing Profits) of the regulations made under the Income Tax Act (Canada) if,

(a) the only salaries and wages taken into account for the purposes of paragraphs (a) and (b) of the definitions of "cost of labour" in sections 5202 and 5204 of those regulations and for the purposes of paragraph (a) of the definitions of "cost of manufacturing and processing labour" in those sections were salaries and wages paid or payable to employees of permanent establishments situated in Ontario;

(b) the reference in paragraph (d) of the definition of "cost of labour" in section 5202 of those regulations to an active business carried on outside Canada were read instead as a reference to an active business carried on outside Ontario; and

(c) the reference in paragraph (e) of the definition of "cost of labour" in section 5204 of those regulations to an active business carried on outside Canada were read instead as a reference to an active business carried on outside Ontario.

Employees reporting to permanent establishment in Ontario

(7) For the purposes of this section, a corporation is deemed to have no employees reporting to a permanent establishment of the corporation in Ontario on March 25, 2008 unless, before that date, the corporation or another corporation that is a designated corporation with respect to the corporation remitted to the Receiver General for Canada amounts deducted or withheld under subsection 153 (1) of the Income Tax Act (Canada) from payments made in February or March of 2008 to its employees of that permanent establishment.

Commencement

15. (1) Subject to subsections (2) to (10), this Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2008 receives Royal Assent.

Same

(2) Section 1 is deemed to have come into force on December 31, 1991.

Same

(3) Sections 2, 3, 11, 12, 13 and 14 are deemed to have come into force on January 1, 2007.

Same

(4) Section 4 is deemed to have come into force on May 5, 1999.

Same

(5) Subsections 5 (1), (4) and (5) and 6 (1) and (2) are deemed to have come into force on January 1, 2008.

Same

(6) Subsections 5 (2), (3) and (6) are deemed to have come into force on May 11, 2005.

Same

(7) Section 7 comes into force on March 26, 2008.

Same

(8) Section 8 is deemed to have come into force on June 30, 2004.

Same

(9) Section 9 is deemed to have come into force on January 1, 2003.

Same

(10) Section 10 is deemed to have come into force on March 21, 2007.

Schedule F
Education Act

1. (1) Clause (b) of the definition of "business property" in section 257.5 of the Education Act is repealed and the following substituted:

(b) property in a class of real property prescribed by the regulations, or

(2) Clause (b) of the definition of "residential property" in section 257.5 of the Act is repealed and the following substituted:

(b) property in a class of real property prescribed by the regulations.

2. Clause 257.12 (1) (a) of the Act is repealed and the following substituted:

(a) prescribing classes of real property for the purposes of clause (b) of the definition of "business property" in section 257.5 or for the purposes of clause (b) of the definition of "residential property" in that section;

Commencement

3. (1) Subject to subsection (2), this Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2008 receives Royal Assent.

Same

(2) Section 1 is deemed to have come into force on January 1, 2007.

Schedule G
Electricity Act, 1998

1. (1) Subsection 2 (1) of the Electricity Act, 1998 is amended by adding the following definition:

"reliability standard" means a standard or criterion, including an amendment to a standard or criterion, relating to the reliable operation of the integrated power system that is approved by a standards authority; ("norme de fiabilité")

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

"standards authority" means the North American Electric Reliability Corporation or any successor thereof, or any other agency or body designated by regulation that approves standards or criteria applicable both in and outside Ontario relating to the reliability of transmission systems; ("organisme de normalisation")

2. Section 20.1 of the Act is amended by striking out "Provincial Auditor" and substituting "Auditor General".

3. Section 25.24 of the Act is amended by striking out "Provincial Auditor" and substituting "Auditor General".

4. Part III of the Act is amended by adding the following sections immediately before the heading "Investigations":

Reliability Standards

Reliability standards

Posting the standard

36.2 (1) Within seven days after the IESO receives notification of the approval of a reliability standard by a standards authority, the IESO shall post the standard on its public website together with any other information and materials that may be prescribed by regulation.

Other notice

(2) If required by regulation, the IESO shall give additional notice of the standard and of any information and materials that may be prescribed by regulation in such other manner and at the time or times prescribed by regulation.

Application for review

(3) Any person may apply to the Board for review of a reliability standard by filing an application with the Board within 21 days after the standard is posted under subsection (1).

Board-initiated review

(4) The Board on its own motion may initiate a review of a reliability standard within 21 days, or such longer period of time as may be prescribed by regulation, after the standard is posted under subsection (1).

Stay pending Board review

(5) No application for review under subsection (3) or initiation of a review by the Board under subsection (4) shall stay the operation of the reliability standard pending the completion of the Board's review of the standard unless the Board orders otherwise.

Same

(6) In determining whether to stay the operation of a reliability standard, the Board shall consider,

(a) the public interest;

(b) the merits of the application;

(d) the impact on consumers;

(e) the balance of convenience;

(f) the need to co-ordinate the implementation of the standard in Ontario with other jurisdictions;

(g) the need to co-ordinate the review of the standard in Ontario with regulatory bodies in other jurisdictions that have reviewed, are reviewing or may review the standard and that have the authority to refer the standard back to the standards authority for further consideration; and

(h) any other matter that may be prescribed by regulation.

Order re inconsistency or discrimination

(7) If, on completion of its review, the Board finds that the standard is inconsistent with the purposes of this Act or unjustly discriminates against or in favour of a market participant or class of market participants, the Board shall make an order,

(a) revoking the operation of the standard in Ontario, if it is already operational, or disallowing the future operation of the standard in Ontario, on a date specified by the Board; and

(b) referring the standard back to the standards authority for further consideration.

Order re co-ordination with other jurisdictions

(8) The Board may also make the order described in subsection (7) if, on completion of its review, the Board finds that there is a need to co-ordinate with other jurisdictions or with regulatory bodies in other jurisdictions regarding the reliability standard.

Order on prescribed grounds

(9) The Lieutenant Governor in Council may make regulations prescribing additional grounds on which the Board shall or may make the order described in subsection (7).

Application

(10) This section does not apply to a reliability standard approved by a standards authority before the day this section comes into force, but does apply to an amendment to a reliability standard, whether the reliability standard being amended was approved before, on or after the day this section comes into force, if the amendment to the reliability standard is approved on or after the day this section comes into force.

Appeals from sanction orders

36.3 (1) The IESO may appeal to the Board an order, finding or remedial action made or taken by a standards authority in respect of a violation of a reliability standard in Ontario, subject to such limitations as may be prescribed by regulation.

Other options to appeal

(2) An appeal shall not be commenced under subsection (1) unless the IESO has commenced all other reviews and appeals available to it and such reviews and appeals have been finally determined.

Time for appeal

(3) The appeal must be filed within the time prescribed by the rules of the Board.

Stay of order

(4) An appeal does not stay the operation of the order, finding or remedial action pending the determination of the appeal unless the Board orders otherwise.

Same

(5) In determining whether to stay the operation of an order, finding or remedial action, the Board shall consider,

(a) the public interest;

(b) the merits of the appeal;

(d) the balance of convenience.

Powers of Board

(6) After considering the appeal, the Board may make an order,

(a) dismissing the appeal;

(b) revoking or amending the order, finding or remedial action appealed from; or

(c) making any other order, finding or decision or taking any other remedial action that the standards authority could have made or taken.

Same

(7) In addition to its powers under subsection (6), the Board may also make an order,

(a) revoking or suspending a condition of the IESO's licence;

(b) amending a condition of the IESO's licence; or

Statutory powers of decision

36.4 The powers of the Board to make orders under sections 36.2 and 36.3 shall be deemed to be statutory powers of decision for the purpose of the Statutory Powers Procedure Act.

5. (1) Subsection 114 (1) of the Act is amended by adding the following clause:

(h.0.1) respecting reliability standards;

(2) Subsection 114 (1.1) of the Act is amended by adding the following clause:

(c) designating an agency or body as a standards authority for the purpose of the definition of "standards authority" in subsection 2 (1).

(3) Section 114 of the Act is amended by adding the following subsection:

Regulations, Part III

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

(a) prescribing any other information or material to be posted under subsection 36.2 (1);

(b) requiring additional notice for the purpose of subsection 36.2 (2) and prescribing any other information or material to be included with that notice and the manner and time or times of giving it;

(c) prescribing the period of time within which the Board may initiate a review of a reliability standard under subsection 36.2 (4);

(d) prescribing other matters to be considered for the purposes of subsection 36.2 (6);

(e) prescribing limitations for the purposes of subsection 36.3 (1).

Commencement

6. This Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2008 receives Royal Assent.

Schedule H
Financial Administration Act

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

Application of accounting principles

16.0.2 For the purposes of this Part, the following matters shall be determined in accordance with the accounting principles set out in the Public Accounts for the relevant fiscal year:

1. Whether a ministry has incurred a liability during the fiscal year.

2. Any other matter prescribed by the regulations.

2. Section 38 of the Act is amended by adding the following clause:

(c.2.1) prescribing matters for the purposes of section 16.0.2;

Commencement

3. This Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2008 receives Royal Assent.

Schedule I
Income tax Act

1. Paragraph 18 of subsection 4 (3.1) of the Income Tax Act is repealed and the following substituted:

18. A credit for charitable and other gifts if the individual is entitled to a deduction under subsection 118.1 (3) of the Federal Act for the year and deducts an amount under that subsection for the year.

2. (1) The definition of "G" in subsection 4.0.1 (24) of the Act is repealed and the following substituted:

"G" is the lesser of $200 and that part of the individual's total gifts for the year under section 118.1 of the Federal Act that was used to determine the amount deducted by the individual for the year under subsection 118.1 (3) of that Act,

(2) The definition of "J" in subsection 4.0.1 (24) of the Act is repealed and the following substituted:

"J" is that part of the individual's total gifts for the year under section 118.1 of the Federal Act that was used to determine the amount deducted by the individual for the year under subsection 118.1 (3) of that Act.

3. (1) Clause 8 (8.1.1) (f) of the Act is amended by striking out "2009" in the portion before subclause (i) and substituting "2007".

(2) Clauses 8 (8.1.1) (g) and (h) of the Act are repealed and the following substituted:

(g) for each taxation year ending after 2006 and before 2009, unless otherwise prescribed, the amount equal to the total of,

(i) the lesser of $1,125 and the amount equal to 15 per cent of the equity capital received from the taxpayer during that taxation year or during the first 60 days of the following year by the corporations on the issue of Class A shares, and

(ii) the lesser of $375 and the amount equal to 5 per cent of the equity capital received from the taxpayer during that taxation year or during the first 60 days of the following year by the corporations on the issue of Class A shares, if the shares were issued by the corporations as research oriented investment funds under subsection 16.1 (2) of the Community Small Business Investment Funds Act.

4. Section 8.5 of the Act is amended by adding the following subsection:

Money appropriated by the Legislature

(33.1) The money required for the purposes of this section shall be paid out of the money appropriated for those purposes by the Legislature.

5. (1) Subsection 8.6.2 (2) of the Act is amended by striking out "Subsection 122.61 (2)" at the beginning.

(2) Section 8.6.2 of the Act is amended by adding the following subsections:

Small amounts

(9.1) If the total amount of an individual's adjusted Ontario child benefit for the 12-month period commencing July 1, 2008 and ending June 30, 2009, as determined under subsection (9.2), is $2 or less, the total amount of the individual's Ontario child benefit for the six-month period commencing July 1, 2008 is deemed to be nil.

Adjusted Ontario child benefit

(9.2) An individual's adjusted Ontario child benefit for the 12-month period commencing July 1, 2008 and ending June 30, 2009 is the sum of,

(a) the individual's total Ontario child benefit for the six-month period commencing July 1, 2008, determined without reference to subsection (9.1); and

(b) the individual's total Ontario child benefit under section 104 of the Taxation Act, 2007 for the six-month period commencing January 1, 2009, determined without reference to subsection 104 (6.1) of that Act.

. . . . .

Money appropriated by the Legislature

(17) The money required for the purposes of this section shall be paid out of the money appropriated for those purposes by the Legislature.

Commencement

6. (1) Subject to subsections (2) and (3), this Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2008 receives Royal Assent.

Same

(2) Section 3 is deemed to have come into force on January 1, 2007.

Same

(3) Section 5 is deemed to have come into force on January 1, 2008.

Schedule J
Interim Appropriation Act, 2008

Interpretation

1. (1) Expressions used in this Act have the same meaning as in the Supply Act, 2007 unless the context requires otherwise.

Same

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

Expenses of the public service

2. For the fiscal year ending on March 31, 2009, amounts not exceeding a total of $55 billion may be paid out of the Consolidated Revenue Fund or incurred as non-cash expenses to be applied to the expenses of the public service that are not otherwise provided for and the money shall be applied in accordance with the votes and items set out in the estimates and supplementary estimates for 2008-09.

Investments of the public service

3. For the fiscal year ending on March 31, 2009, amounts not exceeding a total of $1.5 billion may be paid out of the Consolidated Revenue Fund to be applied to the investments of the public service in capital assets, loans and other investments that are not otherwise provided for and the money shall be applied in accordance with the votes and items set out in the estimates and supplementary estimates for 2008-09.

Expenses of the Legislative Offices

4. For the fiscal year ending on March 31, 2009, amounts not exceeding a total of $133 million may be paid out of the Consolidated Revenue Fund to be applied to the expenses of the Legislative Offices that are not otherwise provided for and the money shall be applied in accordance with the votes and items set out in the estimates and supplementary estimates for 2008-09.

Expenditures of the public service

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

Commencement

6. The Act set out in this Schedule comes into force on April 1, 2008.

Short title

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

Schedule K
Land Transfer Tax Act

1. The Land Transfer Tax Act is amended by adding the following section:

Agreement to exchange information with City of Toronto

5.4 (1) The Minister and the City of Toronto may enter into an agreement under which,

(a) the Minister may disclose to the City of Toronto information collected by the Minister in the administration of this Act or the regulations; and

(b) the City of Toronto may disclose to the Minister information collected by the City of Toronto in the administration and enforcement of a by-law made under section 267 of the City of Toronto Act, 2006 that imposes a municipal land transfer tax.

Scope of information

(2) An agreement described in subsection (1) may authorize the disclosure of any information collected by the Minister, by the City of Toronto or by an agent of either or both of them that relates to a conveyance or a disposition on or after February 1, 2008.

Minister may disclose information

(3) Despite any other Act, the Minister may disclose information to the City of Toronto in accordance with an agreement described in subsection (1).

City of Toronto may collect and use information

(4) Despite any other Act, the City of Toronto may collect and use information disclosed to it by the Minister in accordance with an agreement described in subsection (1), but shall use it only for the purposes of administering or enforcing a by-law made under section 267 of the City of Toronto Act, 2006 that imposes a municipal land transfer tax.

City of Toronto may disclose information

(5) Despite any other Act, the City of Toronto may disclose information to the Minister in accordance with an agreement described in subsection (1).

Minister may collect and use information

(6) Despite any other Act, the Minister may collect and use information disclosed by the City of Toronto in accordance with an agreement described in subsection (1) for the purposes of administering and enforcing any Act and any portion of any Act administered by the Minister.

Deemed collection

(7) Despite any other Act, all information collected by the Minister from the City of Toronto under an agreement described in subsection (1) is deemed to be information collected directly by the Minister from the person or entity from whom the City of Toronto collected the information.

2. The French version of clauses (a) and (b) of the definition of "total purchase price of a qualifying eligible home" in subsection 9 (3) of the Act is amended by striking out "logement admissible" wherever it appears and substituting in each case "logement reconnu".

3. (1) The definition of "purchaser" in subsection 9.2 (1) of the Act is amended by striking out "as defined in the Ontario Home Ownership Savings Plan Act".

(2) Subsection 9.2 (1) of the Act is amended by adding the following definition:

"qualifying home" means,

(a) for agreements of purchase and sale entered into before December 14, 2007, a newly constructed home, and

(b) for agreements of purchase and sale entered into after December 13, 2007, an eligible home. ("logement admissible")

(3) Section 9.2 of the Act is amended by adding the following subsection:

Eligible home

(1.1) For the purposes of this section, an eligible home is,

(a) a detached house;

(b) a semi-detached house, including a dwelling house that is joined to another dwelling house at the footing or foundation by a wall above or below grade or both above and below grade;

(d) a share or shares of the capital stock of a co-operative corporation if the share or shares are acquired for the purpose of acquiring the right to inhabit a housing unit owned by the corporation;

(e) a mobile home that complies with the Canadian Standards Association Standard CAN/CSA-Z240 Mobile Homes and is suitable for year round permanent residential occupation;

(f) a condominium unit;

(g) a residential dwelling that is a duplex, triplex or fourplex;

(h) a partial ownership interest as a tenant in common of real property if the ownership interest was acquired for the purpose of acquiring the right to inhabit a housing unit forming part of the real property;

(i) a manufactured home that is manufactured in whole or in part at an offsite location, that is intended for basement installation, that is suitable for year round permanent residential occupation and that complies with,

(i) the Building Code made under the Building Code Act, 1992,

(ii) if the manufactured home is constructed in sections that are not wider than 4.3 metres, Canadian Standards Association Standard Z240.2.1 Structural Requirements for Mobile Homes and Canadian Standards Association Standard Z240.8.1 Windows for Use in Mobile Homes, or

(iii) if the manufactured home is constructed in sections that are 4.3 metres or wider, Canadian Standards Association Standard A277 Procedure for Certification of Factory Built Houses; or

(j) any other residential property as may be prescribed.

(4) Subsection 9.2 (2) of the Act is amended by striking out "newly constructed home" in the portion before clause (a) and substituting "qualifying home".

(5) Subsection 9.2 (2.1) of the Act is repealed and the following substituted:

Maximum refund

(2.1) The maximum amount of tax refundable under subsection (2) in respect of the acquisition of a qualifying home is $2,000 if the agreement of purchase and sale is entered into by the purchaser after March 31, 1999.

Commencement

4. (1) Subject to subsection (2), this Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2008 receives Royal Assent.

Same

(2) Sections 2 and 3 are deemed to have come into force on December 14, 2007.

Schedule l
Liquor Control Act

1. (1) Section 3 of the Liquor Control Act is amended by adding the following subsections:

Power of Board to borrow

(3) The Board has the power to borrow money on its credit, subject to the approval in writing of the Minister and the Minister of Finance.

Terms and conditions

(4) An approval under subsection (3) may be subject to such terms and conditions as the Minister and the Minister of Finance consider advisable.

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

Borrowing, capital expenditures

(5) Despite subsection 5 (1), if the Board proposes to undertake a major capital expenditure, it shall borrow the necessary funds in accordance with this section.

Major capital expenditure

(6) An expenditure is a major capital expenditure for the purposes of this section in either of the following circumstances:

1. If it satisfies the prescribed criteria.

2. If the Minister notifies the Board in writing that the expenditure is a major capital expenditure for the purposes of this Act.

2. Subsection 8 (1) of the Act is amended by adding the following clause:

(h) prescribing criteria for the purposes of paragraph 1 of subsection 3 (6);

Commencement

3. (1) Subject to subsection (2), this Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2008 receives Royal Assent.

Same

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

Schedule M
Ministry of Revenue Act

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

Pension matters, certain former employees

Definitions

6.1 (1) In this section,

"OPSEU Pension Plan (Ontario)" has the same meaning as "OPSEU Plan" in section 2 of the Ontario Public Service Employees' Union Pension Act, 1994; ("Régime de retraite du SEFPO (Ontario)")

"Public Service Pension Plan (Ontario)" means the Public Service Pension Plan continued by section 3 of the Public Service Pension Act; ("Régime de retraite des fonctionnaires (Ontario)")

"Public Service Superannuation Plan (Canada)" means the pension plan established under the Public Service Superannuation Act (Canada). ("Régime de pension de retraite de la fonction publique (Canada)")

Interpretation, pension terminology

(2) Words and expressions used in this section have the same meaning as under the Pension Benefits Act unless the context requires otherwise.

Scope and nature of transaction

(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 who become employees of the Canada Revenue Agency in connection with the transfer of the administration of certain Ontario corporate tax statutes from the Ministry to the Agency beginning in April 2008 and, for the purposes of the Pension Benefits Act, the transfer of the administration of those tax statutes and the associated transfer of the employees is deemed 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 is an eligible former employee if he or she becomes an employee of the Canada Revenue Agency on or after April 3, 2008 by accepting an offer of employment that refers to the "CTAO/CTAR Human Resources Agreement" between the Canada Revenue Agency and the Crown in right of Ontario.

Notice about pension benefits

(5) When an eligible former employee ceases to be employed in the Ministry, the administrator of the Public Service Pension Plan (Ontario) or the OPSEU Pension Plan (Ontario), as the case may be, shall give him or her a notice,

(a) setting out such information as may be prescribed by regulation; and

(b) including a statement indicating that the Pension Benefits Act does not apply to the Public Service Superannuation Plan (Canada) or to assets transferred to it from the Public Service Pension Plan (Ontario) or from the OPSEU Pension Plan (Ontario), as the case may be.

Effect of election to transfer assets

(6) If an eligible former employee elects in accordance with the applicable reciprocal transfer agreement to transfer his or her accrued pension credits under the Public Service Pension Plan (Ontario) or under the OPSEU Pension Plan (Ontario), as the case may be, to the Public Service Superannuation Plan (Canada),

(a) the administrator is authorized to transfer assets in respect of the eligible former employee to the Public Service Superannuation Plan (Canada) in accordance with the applicable reciprocal transfer agreement;

(b) subsections 80 (1), (4), (5), (6) and (7) of the Pension Benefits Act do not apply with respect to the eligible former employee or the transfer of assets; and

(c) the administrator is discharged upon transferring the assets in accordance with this section and the applicable reciprocal transfer agreement if the administrator has given the eligible former employee the notice required by subsection (5).

Effect if no election made

(7) If an eligible former employee does not make the election described in subsection (6),

(a) the Canada Revenue Agency is the successor employer of the eligible former employee for the purposes of clauses 80 (1) (a) and (c) of the Pension Benefits Act; and

(b) the Canada Revenue Agency is deemed not to be the successor employer of the eligible former employee for the purposes of clause 80 (1) (b) of the Pension Benefits Act.

Consequential amendments to the pension plans

(8) Sections 14 and 26 of the Pension Benefits Act do not apply with respect to any amendment to the Public Service Pension Plan (Ontario) or the OPSEU Pension Plan (Ontario) that relates to the enactment of this section or that relates to a transfer of assets authorized by this section.

Applicable reciprocal transfer agreements

(9) A reference in this section to the "applicable reciprocal transfer agreement" means, in relation to an eligible former employee, the reciprocal transfer agreement filed under the Pension Benefits Act governing the transfer of assets from the Public Service Pension Plan (Ontario) or the OPSEU Pension Plan (Ontario), as the case may be, to the Public Service Superannuation Plan (Canada) that is in effect if and when the eligible former employee makes the election referred to in subsection (6).

Regulations

(10) The Minister may make regulations prescribing the information to be set out in the notice required by subsection (5).

Commencement

2. This Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2008 receives Royal Assent.

Schedule N
Ministry of Treasury and Economics Act

1. Subsection 10 (2) of the Ministry of Treasury and Economics Act is amended by striking out "the Management Board of Cabinet" and substituting "Treasury Board".

Commencement

2. This Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2008 receives Royal Assent.

Schedule O
Municipal Act, 2001

1. Subsections 318 (19) and (20) of the Municipal Act, 2001 are amended by striking out "a complaint" wherever it appears and substituting in each case "an appeal".

2. Paragraph 2 of subsection 329 (4) of the Act is amended by striking out "A complaint" at the beginning and substituting "An appeal".

3. Subsection 331 (13) of the Act is repealed and the following substituted:

Deemed appeal under s. 40 of Assessment Act

(13) Section 40 of the Assessment Act applies to a complaint under subsection (11) or (12) as if it were an appeal under subsection 40 (1) of that Act.

4. Clause 344 (3) (a) of the Act is repealed and the following substituted:

(a) prescribing information that must or that may be included on or with tax bills under section 343 and prohibiting other information from being included on the tax bill without the express authorization of the Minister of Finance;

5. (1) Subsection 358 (5) of the Act is repealed and the following substituted:

Restriction

(a) the error is made subsequent to the commencement of all appeals or applications;

(b) the appeal or application,

(i) is made by a person other than the taxpayer,

(ii) is withdrawn before the appeal or application is actually heard,

(iii) is made in respect of a change to or the addition of the school support of the taxpayer on or to the assessment roll, or

(iv) is made in respect of a change to the name or mailing address of the taxpayer on the assessment roll; or

(2) Subsection 358 (14) of the Act is repealed and the following substituted:

Regulations

(14) The Minister may make regulations prescribing classes of appeals or applications for the purpose of clause (5) (c).

6. Subsection 361 (10.1) of the Act is amended by striking out "a complaint" in the portion before paragraph 1 and substituting "an appeal".

7. Subsection 364 (17) of the Act is repealed and the following substituted:

Same

(17) Section 40 of the Assessment Act applies to a complaint under subsection (14), (15) or (24) as if it were an appeal under subsection 40 (1) of that Act, except the assessment corporation shall not be a party for purposes of subsection 40 (11) of that Act.

8. Section 365.3 of the Act is amended by striking out "a complaint" and substituting "an appeal".

Commencement

9. This Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2008 receives Royal Assent.

Schedule P
Ontario Loan Act, 2008

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 $6.2 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, 2010.

Same

(2) The Crown shall not borrow money after December 31, 2011 under an order in council that authorizes borrowing under this Act unless, on or before December 31, 2011,

(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 Budget Measures and Interim Appropriation Act, 2008 receives Royal Assent.

Short title

4. The short title of the Act set out in this Schedule is the Ontario Loan Act, 2008.

Schedule Q
Ontario Lottery and Gaming Corporation Act, 1999

1. Section 4 of the Ontario Lottery and Gaming Corporation Act, 1999 is amended by adding the following subsection:

Borrowing, approval

(3.1) An approval under subsection (3) may be subject to such terms and conditions as the Minister and the Minister of Finance consider advisable.

2. The Act is amended by adding the following section after the heading "General":

Funding of major capital expenditures

13.1 (1) If the Corporation proposes to undertake a major capital expenditure, the Corporation shall borrow the necessary funds with the approval required by subsection 4 (3).

Major capital expenditure

(2) An expenditure is a major capital expenditure for the purposes of this section in either of the following circumstances:

1. If it satisfies the prescribed criteria for a major capital expenditure or any class of major capital expenditure.

2. If the Minister notifies the Corporation in writing that the expenditure is a major capital expenditure for the purposes of this Act.

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

Same, certain capital expenditures

(1.1) After making the payments required by subsection (1), the Corporation may make payments out of the remaining revenue described in that subsection for capital expenditures in relation to lottery tickets, charity casinos or slot machine facilities other than major capital expenditures referred to in section 13.1.

(2) Subsection 14 (2) of the Act is amended by adding "or permitted by subsection (1.1)" after "required by subsection (1)" in the portion before clause (a).

(3) Section 14 of the Act is amended by adding the following subsection:

Same, certain capital expenditures

(4.1) After making the payments required by subsection (4), the Corporation may make payments out of the remaining revenue described in that subsection for capital expenditures in relation to the operation of casinos other than major capital expenditures referred to in section 13.1.

(4) Subsection 14 (5) of the Act is amended by adding "or permitted by subsection (4.1)" after "required by subsection (4)".

4. Subsection 15 (1) of the Act is amended by adding the following clause:

(f.1) prescribing criteria for determining whether an expenditure or class of expenditures is a major capital expenditure for the purposes of section 13.1;

Commencement

5. (1) Subject to subsection (2), this Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2008 receives Royal Assent.

Same

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

Schedule R
Retail Sales Tax Act

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

"automobile insurance" means, with respect to a motor vehicle required to be insured under the Compulsory Automobile Insurance Act, automobile insurance that satisfies the requirements of that Act; ("assurance-automobile")

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

"returnable container" means a container or other tangible personal property,

(a) that is used in the packaging, storage or shipping of tangible personal property, and

(b) that is intended to be returned, directly or indirectly, to a person for reuse in the packaging, storage or shipping of tangible personal property; ("contenant réutilisable")

(3) Subsection 1 (1.1) of the Act is amended by striking out "July 1, 2008" in the portion before paragraph 1 and substituting "July 1, 2010".

2. (1) Subsections 2.1 (5), (6), (6.1), (6.2), (6.3) and (7) of the Act are repealed.

(2) Clause 2.1 (8) (b) of the Act is amended by striking out "other than contracts of automobile insurance as described in subsections (5) and (6)" at the end.

(3) Subsection 2.1 (8) of the Act is amended by adding the following clause:

(c.1) contracts of automobile insurance with respect to motor vehicles required to be insured under the Compulsory Automobile Insurance Act;

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

Certificate does not affect liability of seller

(3) The issuance of a certificate by the Minister under subsection (1) does not affect any liability under this Act of the person in respect of whom the certificate is issued.

4. (1) Paragraph 41 of subsection 7 (1) of the Act is repealed and the following substituted:

41. Tangible personal property purchased for the purpose of being processed, fabricated or manufactured into, attached to or incorporated into other tangible personal property for the purpose of sale, but this exemption does not apply with respect to,

i. a returnable container for use or sale in Ontario,

ii. a computer program used to produce another computer program that may be purchased exempt from tax under paragraph 62, or

iii. tangible personal property that is to be provided by way of a promotional distribution.

(2) Subsection 7 (1) of the Act is amended by adding the following paragraphs:

69. Bicycles, as defined in the Highway Traffic Act, purchased after November 30, 2007 and before January 1, 2011 at a price of $1,000 or less, and bicycle safety equipment, including bicycle helmets, purchased after November 30, 2007 and before January 1, 2011.

70. Non-commercial refrigerators, dishwashers, freezers, dehumidifiers, room air conditioners and clothes washers, including inseparable clothes washer-dryer combinations, that at the time of purchase are qualified as Energy Star® by the Office of Energy Efficiency, Natural Resources Canada and in respect of which,

i. the contract for sale is entered into after July 19, 2007 and before September 1, 2009,

ii. the sale is the first sale of the appliance to any purchaser,

iii. if the sale is a rental or lease, the term of the rental or lease is at least 365 days, and

iv. delivery to the purchaser occurs before October 1, 2009.

71. Light bulbs and decorative light strings,

i. that, at the time of purchase, are qualified as Energy Star® by the Office of Energy Efficiency, Natural Resources Canada, and

ii. that are purchased after July 19, 2007 and before September 1, 2009.

72. Nicotine replacement therapies designed solely to assist persons to stop smoking that,

i. if purchased after August 12, 2007 and before March 26, 2008, have been assigned a drug identification number by Health Canada, or

ii. if purchased after March 25, 2008, have been assigned by Health Canada either a drug identification number or a natural product number.

5. Section 9 of the Act is amended by adding the following subsections:

Exemption from tax on admissions to live theatres

(2.1) The tax imposed by subsection 2 (5) is not payable in respect of the price of admission to a theatre, including a dinner theatre, if,

(a) the theatre has not more than 3,200 seats; and

(b) the price of admission is for a live dramatic, comedic, choreographic or musical performance, including a live theatrical play and a live ballet, orchestral or operatic performance.

Exception

(2.2) Subsection (2.1) does not apply in respect of the price of admission to a nightclub, tavern, cocktail lounge, bar, striptease club or similar establishment, or in respect of any amount paid by a purchaser that is reasonably attributable to the sale of tangible personal property or a taxable service.

6. Subsection 48 (2) of the Act is amended by adding the following clause:

(m) prescribing additional circumstances in which interest is payable under this Act and the rate of the interest, a formula for computing the rate of interest or a method of calculating the interest.

Commencement

7. (1) Subject to subsections (2) and (3), this Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2008 receives Royal Assent.

Same

(2) Subsections 1 (2) and 4 (1) are deemed to have come into force on May 7, 1997.

Same

(3) Subsections 1 (3) and 4 (2) and section 5 come into force on March 26, 2008.

Schedule S
Taxation Act, 2007

1. (1) The definition of "Canadian-controlled private corporation" in subsection 1 (1) of the Taxation Act, 2007 is repealed and the following substituted:

"Canadian-controlled private corporation" means a corporation that would be a Canadian-controlled private corporation for the purposes of the Federal Act if the definition of that expression in subsection 125 (7) of that Act were read without reference to clause (d) of the definition; ("société privée sous contrôle canadien")

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

"designated corporation" means, with respect to a particular corporation,

(a) a corporation that amalgamated with one or more other corporations to form the particular corporation, if section 87 of the Federal Act applies to the amalgamation,

(b) a corporation that winds up into the particular corporation, if subsection 88 (1) of the Federal Act applies to the winding-up, or

(c) a corporation that is a designated corporation with respect to a corporation that is itself a designated corporation with respect to the particular corporation; ("société désignée")

2. Subsection 9 (21) of the Act is repealed and the following substituted:

Charitable donation tax credit

(21) If an individual is entitled to a deduction under subsection 118.1 (3) of the Federal Act for a taxation year and deducts an amount under that subsection, the individual is entitled to a tax credit for the year for charitable and other gifts calculated using the formula,

(A × HH) + [II × (JJ – HH)]

in which,

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

"HH" is the lesser of $200 and that part of the individual's total gifts for the year under section 118.1 of the Federal Act that was used to determine the amount deducted by the individual for the year under subsection 118.1 (3) of that Act,

"II" is the highest tax rate for the year, and

"JJ" is that part of the individual's total gifts for the year under section 118.1 of the Federal Act that was used to determine the amount deducted by the individual for the year under subsection 118.1 (3) of the Federal Act.

3. Clause 15 (1) (a) of the Act is amended by striking out "subdivision c" and substituting "subdivision b".

4. (1) Clause 20 (7) (a) of the Act is amended by striking out "or (12)" and substituting "or (13)".

(2) Clause 20 (7) (b) of the Act is amended by striking out "subsection 9 (12)" and substituting "subsection 9 (13)".

(3) Clause 20 (7) (c) of the Act is amended,

(a) by striking out "subsection 9 (11)" and substituting "subsection 9 (12)"; and

(b) by striking out "subsection 9 (16)" at the end and substituting "subsection 9 (17)".

(4) Subsection 20 (8) of the Act is amended by striking out "subsection 9 (6) or (12)" in the portion before paragraph 1 and substituting "subsection 9 (6) or (13)".

(5) Paragraph 1 of subsection 20 (8) of the Act is amended by striking out "subsection 9 (6) or (12)" and substituting "subsection 9 (6) or (13)".

(6) Paragraph 2 of subsection 20 (8) of the Act is amended by striking out "subsection 9 (6) or (12)" and substituting "subsection 9 (6) or (13)".

5. Subsection 22 (2) of the Act is repealed and the following substituted:

Interpretation, maximum tax credit

(2) The maximum tax credit permitted for a taxation year in respect of investments made by an individual in corporations registered under Part III of the Community Small Business Investment Funds Act is,

(a) for the 2009 taxation year, unless otherwise prescribed, the sum of,

(i) the lesser of $1,125 and the amount equal to 15 per cent of the equity capital received from the individual during 2009 or during the first 60 days of 2010 by the corporations on the issue of Class A shares, and

(ii) the lesser of $375 and the amount equal to 5 per cent of the equity capital received from the individual during 2009 or during the first 60 days of 2010 by the corporations on the issue of Class A shares, if the shares were issued by the corporations as research oriented investment funds under subsection 16.1 (2) of the Community Small Business Investment Funds Act;

(b) for the 2010 taxation year, unless otherwise prescribed, the sum of,

(i) the lesser of $750 and the amount equal to 10 per cent of the equity capital received from the individual during 2010 or during the first 60 days of 2011 by the corporations on the issue of Class A shares, and

(ii) the lesser of $375 and the amount equal to 5 per cent of the equity capital received from the individual during 2010 or during the first 60 days of 2011 by the corporations on the issue of Class A shares, if the shares were issued by the corporations as research oriented investment funds under subsection 16.1 (2) of the Community Small Business Investment Funds Act; or

(i) the lesser of $375 and the amount equal to 5 per cent of the equity capital received from the individual during 2011 or during the first 60 days of 2012 by the corporations on the issue of Class A shares, and

(ii) the lesser of $375 and the amount equal to 5 per cent of the equity capital received from the individual during 2011 or during the first 60 days of 2012 by the corporations on the issue of Class A shares, if the shares were issued by the corporations as research oriented investment funds under subsection 16.1 (2) of the Community Small Business Investment Funds Act.

6. Subsection 31 (5) of the Act is repealed and the following substituted:

Ontario business limit

(5) The amount of a corporation's Ontario business limit for a taxation year is the amount that would be the corporation's business limit under paragraph 125 (1) (c) of the Federal Act for the year if,

(a) the references to $400,000 in subsections 125 (2) and (3) of that Act were read as references to $500,000; and

(b) the Federal Act were read without reference to subsection 125 (5.1) of that Act.

Specified partnership income

(6) In applying subparagraph 125 (1) (a) (ii) of the Federal Act for the purposes of this section, the reference to "specified partnership income" in that subparagraph shall be read as a reference to the amount that would be determined under the definition of "specified partnership income" in subsection 125 (7) of that Act in respect of a partnership if, in the description of "M" in that definition,

(a) the reference to $400,000 were read as $500,000; and

(b) the reference to $1,096 were read as $1,370.

7. (1) Clause 32 (1) (b) of the Act is repealed and the following substituted:

(b) the amount calculated using the formula,

A × (B + C – $500,000) × D/$500,000

in which,

"A" is the corporation's small business surtax rate for the year as set out in subsection (3),

"B" is the amount of the corporation's adjusted taxable income for the year,

"C" is the sum of all amounts each of which is the adjusted taxable income of another corporation with which the corporation was associated at any time during the year, for the last taxation year of that associated corporation that ended at or before the end of the corporation's taxation year, and

"D" is the amount of the corporation's Ontario small business income for the year.

(2) 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.

8. (1) Subsection 34 (2) of the Act is amended by striking out "Ontario allocation factor" in the portion before the definition of "A" and substituting "Ontario domestic factor".

(2) Section 34 of the Act is amended by adding the following subsection:

Authorized foreign bank

(3.1) For the purposes of this section, an authorized foreign bank is deemed to be resident in Canada for a taxation year with respect to its Canadian banking business for the year and may deduct a foreign tax credit under subsection (1) that is calculated,

(a) as if the reference in the definition of "A" in subsection (2) to "foreign investment income of the corporation" were a reference to only that part of the bank's foreign investment income that relates to its Canadian banking business; and

(b) as if the references to "country other than Canada" in the definition of "A" in subsection (2) and in the definition of "foreign investment income" in subsection (5) were references to a country that is neither Canada nor any country in which the bank was resident at any time in the year.

9. (1) Clauses (e) and (f) of the definition of "eligible amalgamation" in subsection 46 (1) of the Act are amended by striking out "the amalgamation" at the beginning of each clause and substituting in each case "the amalgamation or merger".

(2) The definition of "transition time" in subsection 46 (1) of the Act is repealed and the following substituted:

"transition time" means, in respect of a corporation,

(a) the beginning of the corporation's first taxation year that begins after 2008 if the previous taxation year is deemed under subsection 249 (3) of the Federal Act to end on the last day of 2008, or

(b) the beginning of the corporation's taxation year that includes the beginning of 2009 in any other case; ("date de transition")

(3) Sub-subclause 46 (2) (b) (v) (A) of the Act is repealed and the following substituted:

(A) the corporation or another corporation that is a designated corporation with respect to it was a party to a transaction or event at any time before the beginning of the corporation's reference period, and

(4) Paragraph 2 of subsection 46 (5) of the Act is repealed and the following substituted:

2. Unless a taxation year of the corporation is deemed under subsection 249 (3) of the Federal Act to end on the last day of 2008, the corporation has a taxation year that ends before 2009 and a taxation year that includes the beginning of 2009.

2.1 If a taxation year of the corporation is deemed under subsection 249 (3) of the Federal Act to end on the last day of 2008, the corporation has a taxation year that begins after December 31, 2008.

10. (1) Clause (a) of the definition of "A" in subsection 48 (1) of the Act is repealed and the following substituted:

(a) nil, if the corporation's amortization period ends before the taxation year,

(a.1) the total number of days in the corporation's reference period that are on or after the first day of the taxation year, if the corporation's amortization period ends in the taxation year by reason of subclause 46 (2) (b) (ii), (iii), (iv), (v) or (vi), or

(2) Sub-subparagraph 1 ii B of subsection 48 (2) of the Act is repealed and the following substituted:

B. the greatest of all amounts each of which is the Ontario allocation factor of another corporation that is a designated corporation with respect to it, for a taxation year of the designated corporation that ends in the calendar year in which the corporation's particular year ends or in the previous calendar year.

(3) Subparagraph 2 iii of subsection 48 (2) of the Act is repealed and the following substituted:

iii. all amounts each of which is the Ontario allocation factor of a corporation that is a designated corporation with respect to it for a taxation year of the designated corporation that ends in a calendar year described in subparagraph ii.

(4) Subclause (b) (ii) of the definition of "G" in paragraph 1 of subsection 48 (4) of the Act is amended by striking out "paragraphs 110.1 (1) (b), (c) and (d) of the Federal Act" and substituting "paragraphs 110.1 (1) (a.1), (b), (c) and (d) of the Federal Act".

(5) Subclause (b) (ii) of the definition of "U" in paragraph 1 of subsection 48 (6) of the Act is amended by striking out "paragraph 110.1 (1) (b), (c) or (d) of the Federal Act" and substituting "paragraph 110.1 (1) (a.1), (b), (c) or (d) of the Federal Act".

11. (1) Clause 49 (5) (c) of the Act is repealed and the following substituted:

(c) the greatest of all amounts each of which is the weighted Ontario allocation factor for 2006, 2007 or 2008 of the corporation and every corporation, if any, that is a designated corporation with respect to it.

(2) Section 49 of the Act is amended by adding the following subsection:

Exception

(5.1) Despite subsection (5), if a corporation does not have a taxation year that includes the beginning of 2009, its relevant Ontario allocation factor is its Ontario allocation factor for its first taxation year ending after December 31, 2008.

12. (1) Subsection 51 (1) of the Act is amended by adding the following paragraphs:

3.1 If a new corporation is formed as a result of an amalgamation or merger to which paragraph 3 does not apply, and the amalgamation or merger would be an eligible amalgamation in respect of at least one of the predecessor corporations (referred to as an "eligible predecessor corporation") if clauses (e) to (g) of the definition of "eligible amalgamation" in subsection 46 (1) were not taken into account,

i. the new corporation is deemed to be a specified corporation, and

ii. there shall be added in computing the new corporation's federal SR & ED transitional balance the sum of all amounts each of which is the amount that would have been the federal SR & ED transitional balance of an eligible predecessor corporation at the time of the amalgamation or merger if the eligible predecessor corporation had had a taxation year beginning at that time.

. . . . .

4.1 If property of a subsidiary corporation is distributed in the course of a winding-up to which paragraph 4 does not apply, and the winding-up would be an eligible post-2008 winding-up if clause (e) of the definition of "eligible post-2008 winding-up" in subsection 46 (1) were not taken into account,

i. the parent corporation is deemed, after the completion time of the winding-up, to be a specified corporation, and

ii. there shall be added in computing the parent corporation's federal SR & ED transitional balance after the completion time of the winding-up the amount that would be the subsidiary corporation's federal SR & ED transitional balance immediately after the completion time if the subsidiary corporation had continued to exist.

(2) Subsection 51 (6) of the Act is amended by striking out "and" at the end of clause (a), by adding "and" at the end of clause (b) and by adding the following clause:

(c) as if any property that is deemed under paragraph 88 (1) (a.2) of the Federal Act not to have been disposed of had been retained until the completion time.

(3) Subsection 51 (7) of the Act is amended by striking out "and" at the end of clause (a), by adding "and" at the end of clause (b) and by adding the following clause:

(c) as if any property that is deemed under paragraph 88 (1) (a.2) of the Federal Act not to have been disposed of had been retained until the completion time.

13. (1) Subsection 52 (1) of the Act is amended by adding the following definitions:

"adjusted cost" means,

(a) with respect to property of a transferee that is eligible capital property for the purposes of the Federal Act, three-quarters of the cost amount to the transferee of the property, as determined for the purposes of the Federal Act or the Corporations Tax Act, as the case may be, and

(b) with respect to any other property of the transferee, the cost amount to the transferee of the property, as determined for the purposes of the Federal Act or the Corporations Tax Act, as the case may be; ("coût rajusté")

"adjusted proceeds" means,

(a) with respect to property of a transferor that is eligible capital property for the purposes of the Federal Act, three-quarters of the transferor's proceeds of disposition in respect of the property, as determined for the purposes of the Federal Act or the Corporations Tax Act, as the case may be, and

(b) with respect to any other property of the transferor, the transferor's proceeds of disposition in respect of the property, as determined for the purposes of the Federal Act or the Corporations Tax Act, as the case may be; ("produit rajusté")

(2) Clauses 52 (2) (a) and (b) of the Act are repealed and the following substituted:

(a) add the amount of the transferor's adjusted proceeds in respect of the property, as determined under the Federal Act, in determining its total federal balance at the relevant time; and

(b) add the amount of the transferor's adjusted proceeds in respect of the property, as determined under the Corporations Tax Act, in determining its total Ontario balance at the relevant time.

(3) Clauses 52 (4) (a) and (b) of the Act are repealed and the following substituted:

(a) subtract the property's adjusted cost to the transferee at the relevant time, as determined under the Federal Act, in determining its total federal balance at the relevant time; and

(b) subtract the property's adjusted cost to the transferee at the relevant time, as determined under the Corporations Tax Act, in determining its total Ontario balance at the relevant time.

14. (1) Subsection 54 (1) of the Act is amended by adding the following definitions:

"excluded mark-to-market property" means, in respect of a corporation, property, other than specified mark-to-market property, held by the corporation, and in respect of which,

(a) any mark-to-market changes recognized under generally accepted accounting principles from the beginning to the end of a taxation year of the corporation would be reflected in the calculation of the corporation's income for the taxation year for the purposes of Division B of Part III if the property were held by the corporation throughout the taxation year, or

(b) if the property is denominated in a foreign currency, any change under generally accepted accounting principles in the value of that currency relative to Canadian currency from the beginning to the end of a taxation year of the corporation would be reflected in the calculation of the corporation's income for the taxation year for the purposes of Division B of Part III if the property were held by the corporation throughout the taxation year; ("bien évalué à la valeur du marché qui est exclu")

"specified mark-to-market property" means, in respect of a corporation, property, other than excluded mark-to-market property, held by the corporation and in respect of which,

(a) any mark-to-market changes recognized under generally accepted accounting principles from the beginning to the end of a taxation year of the corporation would be reflected in the calculation of the corporation's net income for the taxation year for the purposes of this Division if the property were held by the corporation throughout the taxation year, or

(b) if the property is denominated in a foreign currency, any change under generally accepted accounting principles in the value of that currency relative to Canadian currency from the beginning to the end of a taxation year of the corporation would be reflected in the calculation of the corporation's net income for the taxation year for the purposes of this Division if the property were held by the corporation throughout the taxation year; ("bien évalué à la valeur du marché qui est déterminé")

(2) The definition of "total assets" in subsection 54 (1) of the Act is repealed and the following substituted:

(3) Section 54 of the Act is amended by adding the following subsection:

Adjustment to total assets re: specified mark-to-market property

(1.1) The amount in respect of a specified mark-to-market property to be included in the total assets of a corporation for a taxation year for the purposes of this Division is determined without reference to mark-to-market changes with respect to the specified mark-to-market property.

(4) Subsection 54 (5) of the Act is amended by adding "Subject to subsection (6)" at the beginning.

(5) Section 54 of the Act is amended by adding the following subsections:

Exception for total assets

(6) The amount in respect of a specified mark-to-market property to be included in the total assets of a partnership for a fiscal period for the purposes of applying subsection (4) to a corporation for a taxation year is determined without reference to any mark-to-market change with respect to the specified mark-to-market property.

Same

(7) For the purposes of subsection (6), any mark-to-market changes with respect to property of a partnership are determined as if the partnership were a corporation and its fiscal period were a taxation year.

15. (1) Clauses (c) and (d) of the definition of "B" in subsection 57 (1) of the Act are repealed and the following substituted:

(c) all amounts included in the computation of the corporation's income by reason of section 135 of the Federal Act, to the extent that the amounts have not been taken into consideration in the calculation of,

(i) the corporation's net income or net loss, as the case may be, for the taxation year or a previous taxation year ending after December 31, 2008, or

(ii) the corporation's net income or net loss, as the case may be, as determined under Part II.1 of the Corporations Tax Act, for a previous taxation year ending before January 1, 2009, and

(2) Clause (d) of the definition of "C" in subsection 57 (1) of the Act is repealed.

16. (1) Section 58 of the Act is amended by adding the following subsection:

Exception

(4.1) If an amalgamation of two or more predecessor corporations occurs after March 21, 2007, subsection (4) does not apply in determining for the purposes of the amalgamated corporation an amount in respect of one of the predecessor corporations if that predecessor corporation was controlled at any time before the amalgamation by any of the other predecessor corporations.

(2) Subsection 58 (5) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Winding-up

(5) If the rules in subsection 88 (1) of the Federal Act apply to the winding-up of a subsidiary corporation that was completed before March 22, 2007, the parent corporation is deemed to be the same corporation as and a continuation of the subsidiary corporation for the purposes of determining the amount of,

. . . . .

17. Subsection 64 (1) of the Act is amended by striking out "January 1, 2012" at the end of the portion before clause (a) and substituting "July 1, 2010".

18. (1) Clauses 72 (2) (a), (b) and (c) of the Act are repealed and the following substituted:

(a) 0.45 per cent multiplied by the ratio of the number of days in the year that are before January 1, 2010 to the total number of days in the year; and

(b) 0.3 per cent multiplied by the ratio of the number of days in the year that are after December 31, 2009 and before July 1, 2010 to the total number of days in the year.

(2) Subparagraphs 1 i, ii and iii of subsection 72 (4) of the Act are repealed and the following substituted:

i. 0.675 per cent multiplied by the ratio of the number of days in the year that are before January 1, 2010 to the total number of days in the year, and

ii. 0.45 per cent multiplied by the ratio of the number of days in the year that are after December 31, 2009 and before July 1, 2010 to the total number of days in the year.

(3) Subparagraphs 2 i, ii and iii of subsection 72 (4) of the Act are repealed and the following substituted:

i. 0.54 per cent multiplied by the ratio of the number of days in the year that are before January 1, 2010 to the total number of days in the year, and

ii. 0.36 per cent multiplied by the ratio of the number of days in the year that are after December 31, 2009 and before July 1, 2010 to the total number of days in the year.

19. The definition of "D" in subsection 73 (4) of the Act is repealed and the following substituted:

"D" is the sum of,

(a) 0.675 per cent multiplied by the ratio of the number of days in the year that are before January 1, 2010 to the total number of days in the year, and

(b) 0.45 per cent multiplied by the ratio of the number of days in the year that are after December 31, 2009 and before July 1, 2010 to the total number of days in the year.

20. (1) Subsection 82 (1) of the Act is repealed and the following substituted:

Capital tax, corporations other than financial institutions

(1) The amount of capital tax payable under this Division by a corporation other than a financial institution for a taxation year commencing before July 1, 2010 is the amount calculated using the formula,

[A × B × (C – D) × E/365] – F

in which,

"A" is the corporation's Ontario allocation factor for the year,

"B" is the corporation's capital tax rate for the year,

"C" is,

(a) the amount of the corporation's taxable capital for the year if the corporation is resident in Canada, or

(b) the amount of the corporation's taxable capital employed in Canada for the year if the corporation is non-resident,

"D" is the corporation's capital deduction for the year,

"E" is,

(a) 365 days if there are at least 51 weeks in the year, or

(b) the number of days in the year, in any other case, and

"F" is the amount, if any, of the corporation's capital tax credit for manufacturers for the year, as determined under section 83.1.

(2) Clauses 82 (2) (a), (b) and (c) of the Act are repealed and the following substituted:

(a) 0.225 per cent multiplied by the ratio of the number of days in the year that are before January 1, 2010 to the total number of days in the year; and

(b) 0.15 per cent multiplied by the ratio of the number of days in the year that are after December 31, 2009 and before July 1, 2010 to the total number of days in the year.

21. Part III of the Act is amended by adding the following section:

Capital tax credit for manufacturers

Application

83.1 (1) This section applies to a corporation for a taxation year if the corporation's Ontario manufacturing labour cost for the taxation year is more than 20 per cent of its total Ontario labour cost for the year.

Credit equal to the amount of tax

(2) If the corporation's Ontario manufacturing labour cost for the year is at least 50 per cent of its total Ontario labour cost for the year, its capital tax credit for manufacturers for the year is the total amount of tax that would, but for this section, be payable by the corporation under this Division for the year.

Deduction from tax

(3) If the corporation's Ontario manufacturing labour cost for the year is less than 50 per cent but more than 20 per cent of its total Ontario labour cost for the year, its capital tax credit for manufacturers for the year is calculated using the formula,

in which,

"A" is the amount of tax that would, but for this section, be payable by the corporation under this Division for the year, and

"B" is the percentage that its Ontario manufacturing labour cost for the year is of its total Ontario labour cost for the year, expressed in decimals.

Ontario manufacturing labour cost

(4) For the purposes of this section, a corporation's Ontario manufacturing labour cost for a taxation year is the amount that would be its cost of manufacturing and processing labour for the year under Part LII (Canadian Manufacturing and Processing Profits) of the Federal regulations if,

(a) the activities described in paragraphs (a), (b), (e), (f), (g) and (l) of the definition of "manufacturing or processing" in subsection 125.1 (3) of the Federal Act were included in determining what constituted qualified activities under Part LII of those regulations;

(b) references in Part LII of those regulations to qualified activities carried out in Canada were read instead as references to qualified activities carried out in Ontario;

(d) paragraph (f) of the definition of "cost of labour" in section 5204 of those regulations did not apply.

Total Ontario labour cost

(5) For the purposes of this section, a corporation's total Ontario labour cost for a taxation year is the amount that would be its cost of labour for the year under Part LII (Canadian Manufacturing and Processing Profits) of the Federal regulations if,

22. (1) Subsection 91 (3) of the Act is amended by striking out "subsections (4) and (5)" and substituting "subsections (4), (4.1) and (5)".

(2) Subsection 91 (4) of the Act is amended by striking out the portion before paragraph 1 and substituting the following:

Pre-2008 expenditures

(4) The amount determined under this subsection in respect of a first-time production for the purposes of subsection (3) is the sum of the amounts determined under the following paragraphs for the portion of the qualifying production company's qualifying labour expenditure for the production that relates to expenditures incurred after December 31, 2004 and before January 1, 2008:

. . . . .

(3) Section 91 of the Act is amended by adding the following subsection:

2008 and 2009 expenditures

(4.1) The amount determined under this subsection in respect of a first-time production for the purposes of subsection (3) is the sum of the amounts determined under the following paragraphs for the portion of the qualifying production company's qualifying labour expenditure for the production that relates to expenditures incurred after December 31, 2007 and before January 1, 2010:

1. 40 per cent of the lesser of,

i. the amount, if any, by which $240,000 exceeds the sum of,

A. the total of the company's qualifying labour expenditures for the production for previous taxation years, and

B. the lesser of the amounts, if any, determined under subparagraphs 1 i and ii of subsection (4) in respect of the production for the taxation year, and

ii. the company's qualifying labour expenditure for the taxation year for the production.

3. If the production is a regional Ontario production, 10 per cent of the company's qualifying labour expenditure for the taxation year for the production.

(4) Subparagraph 1 i of subsection 91 (5) of the Act is amended by striking out "and" at the end of sub-subparagraph 1 i A and by adding the following sub-subparagraph:

C. the lesser of the amounts, if any, determined under subparagraphs 1 i and ii of subsection (4.1) in respect of the production for the taxation year, and

(5) Subsection 91 (6) of the Act is amended by striking out "paragraph 1, 2 or 3 of subsection (4)" and substituting "paragraph 1, 2 or 3 of subsection (4.1)".

(6) Clause 91 (9) (a) of the Act is amended,

(a) by striking out "January 1, 2010" and substituting "January 1, 2008"; and

(b) by striking out "and" at the end.

(7) Subsection 91 (9) of the Act is amended by adding the following clause:

(a.1) 35 per cent of the company's qualifying labour expenditure for the year in respect of the production, as determined in relation to expenditures incurred after December 31, 2007 and before January 1, 2010 that are included in the Ontario labour expenditure for the year in respect of the production; and

(8) Clause 91 (10) (a) of the Act is amended,

(a) by striking out "January 1, 2010" and substituting "January 1, 2008"; and

(b) by striking out "and" at the end.

(9) Subsection 91 (10) of the Act is amended by adding the following clause:

(a.1) 45 per cent of the company's qualifying labour expenditure for the year for the production, as determined in relation to expenditures incurred after December 31, 2007 and before January 1, 2010 that are included in the Ontario labour expenditure for the year in respect of the production; and

23. (1) Clause 92 (3) (a) of the Act is amended,

(a) by striking out "April 1, 2008" and substituting "January 1, 2008"; and

(b) by striking out "and" at the end.

(2) Subsection 92 (3) of the Act is amended by adding the following clause:

(a.1) 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 January 1, 2010; and

(3) Clause 92 (3) (b) of the Act is amended by striking out "March 31, 2008" and substituting "December 31, 2009".

(4) Subsection 92 (4) of the Act is amended by striking out "clause (3) (a) or (b)" and substituting "clause (3) (a.1) or (b)".

24. (1) Subsection 93 (2) 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) if the corporation is a qualifying small corporation, the sum of,

(i) 10 per cent of the amount that would be determined under subclause (3) (b) (i) for the year if the amounts referred to in that subclause were determined by reference only to expenditures incurred after March 23, 2006 and before January 1, 2012, and

(ii) 5 per cent of the amount that would be determined under clause (3) (a) for the year if the amounts referred to in that clause were determined by reference only to expenditures incurred after March 25, 2008 and before January 1, 2012; and

(c) if the corporation is not a qualifying small corporation, 5 per cent of the amount that would be determined under subsection (3) if the amounts referred to in that subsection were determined by reference only to expenditures incurred after March 25, 2008 and before January 1, 2012.

(2) Clause 93 (3) (a) of the Act is amended by striking out "January 1, 2010" and substituting "January 1, 2012".

(3) Subclause 93 (3) (b) (ii) of the Act is amended by striking out "January 1, 2010" and substituting "January 1, 2012".

(4) The definition of "C" in the definition of "B" in subsection 93 (4) of the Act is repealed and the following substituted:

"C" 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

25. The definition of "A" in subsection 96 (4) of the Act is repealed and the following substituted:

"A" is the sum of the amounts that would be the Ontario business limits for the particular year for the corporation and every other corporation associated with the corporation in the particular year (in this subsection referred to as an "associated corporation") if the Ontario business limits were determined under subsection 31 (5) as if paragraph 125 (5) (b) of the Federal Act and clause 31 (5) (a) did not apply, and

26. Subsection 99 (3) of the Act is amended by striking out the portion before the definition of "A" and substituting the following:

Amount of tax credit

(3) Subject to section 101, the amount of a qualifying individual's property and sales tax credits under this section for a taxation year is the lesser of $1,000 and the amount, if any, calculated using the formula,

(A + B) – [0.02 × (C – $4,000)]

in which,

. . . . .

27. (1) Subsection 100 (4) of the Act is amended by striking out the portion before the definition of "A" and substituting the following:

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

(4) For the purposes of clause (3) (a), the amount is the lesser of $1,125 and the amount, if any, calculated using the formula,

(A + B) – [0.04 × (C – $22,000)]

in which,

. . . . .

(2) Subsection 100 (5) of the Act is amended by striking out the portion before the definition of "A" and substituting the following:

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

(5) For the purposes of clause (3) (b), the amount is the lesser of $1,125 and the amount, if any, calculated using the formula,

(A + B) – [0.04 × (C – $23,090)]

in which,

. . . . .

28. (1) The English version of clause 102 (4) (a) of the Act is amended by striking out "Chief Election Officer" and substituting "Chief Electoral Officer".

(2) Subsection 102 (6) of the Act is amended by adding the following definition:

"recorded agent" means a person on record with the Chief Electoral Officer as being authorized to accept contributions on behalf of a political party, constituency association or candidate registered under the Election Finances Act; ("agent désigné")

29. (1) Subsection 104 (2) of the Act is amended by striking out "Subsection 122.61 (2)" at the beginning.

(2) Section 104 of the Act is amended by adding the following subsections:

Small amounts

(6.1) If the total amount of an individual's adjusted Ontario child benefit for the 12-month period commencing July 1, 2008, as determined under subsection 8.6.2 (9.2) of the Income Tax Act, is less than $2.01, the total amount of the individual's Ontario child benefit for the 6-month period beginning on January 1, 2009 is nil.

Same

(6.2) If the total amount of an individual's Ontario child benefit is less than $2.01 for a 12-month period commencing on July 1 in a calendar year that begins after 2008 and in relation to which a particular taxation year is the base taxation year, the total amount of the individual's Ontario child benefit for the 12-month period is deemed to be nil.

(3) Section 104 of the Act is amended by adding the following subsection:

Money appropriated by the Legislature

(10.1) The money required for the purposes of this section shall be paid out of the money appropriated for those purposes by the Legislature.

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

Part V.1
Senior Homeowners' Property Tax Grant

Senior homeowners' property tax grant

Definitions

104.1 (1) In this section,

"adjusted income" has the meaning assigned by subsection 98 (1); ("revenu rajusté")

"cohabiting spouse or common-law partner" means, in respect of an eligible senior for a taxation year, the person who, on December 31 of the previous year, was the individual's qualifying spouse or qualifying common-law partner under subsection 98 (6); ("conjoint ou conjoint de fait visé")

"designated principal residence" means, in respect of an eligible senior, a principal residence of the eligible senior, the eligible senior's cohabiting spouse or common-law partner or both of them, that is designated by the individual in the prescribed manner; ("résidence principale désignée")

"eligible senior" means an individual who is an eligible senior under subsection (2); ("personne âgée admissible")

"individual" does not include a person described in clause 84 (2) (c); ("particulier")

"principal residence" has the meaning assigned by subsection 98 (1); ("résidence principale")

"property tax" means an amount that is municipal tax for the purposes of determining the amount of a property and sales tax credit under section 100. ("impôt foncier")

Eligible senior

(2) An individual is an eligible senior for the purposes of this section for a taxation year if the following conditions are satisfied:

1. The individual was at least 64 years old on December 31 of the previous taxation year.

2. The individual was resident in Ontario on December 31 of the previous taxation year.

3. A return of income for the previous taxation year was filed in respect of the individual for the purposes of this Act.

4. The individual or his or her cohabiting spouse or common-law partner paid in the previous taxation year property tax for that year in respect of one or more principal residences that are designated principal residences for that year.

5. The individual or his or her cohabiting spouse or common-law partner owned and occupied a designated principal residence on December 31 of the previous taxation year.

6. The individual has not been confined to a prison or similar institution for a total of more than 180 days during the previous taxation year.

7. The Ontario Minister has not made a payment under this section for the taxation year to the individual's cohabiting spouse or common-law partner.

Amount of senior homeowners' property tax grant

(3) An individual who is an eligible senior for a taxation year and complies with the requirements of this section is entitled to a senior homeowners' property tax grant for the taxation year in the amount calculated using the formula,

A – (B × C )

in which,

"A" is the lesser of,

(a) the total amount of property tax for the previous taxation year that was paid in that year by the eligible senior and his or her cohabiting spouse or common-law partner in respect of all of their designated principal residences for that year, and

(b) the amount of,

(i) $250 if the taxation year ends after December 31, 2008 and before January 1, 2010, or

(ii) $500 if the taxation year ends after December 31, 2009,

"B" is,

(a) 0.0166 if the taxation year ends after December 31, 2008 and before January 1, 2010, or

(b) 0.0333 if the taxation year ends after December 31, 2009, and

"C" is the amount, if any, by which, the eligible senior's adjusted income for the previous taxation year exceeds,

(a) $35,000 if the eligible senior has no cohabiting spouse or common-law partner on December 31 of the previous taxation year, or

(b) $45,000 if the eligible senior has a cohabiting spouse or common-law partner on December 31 of the previous taxation year.

Application for grant

(4) In order to receive a grant under this section for a taxation year, an eligible senior shall apply for the grant in the manner and at the time directed by the Ontario Minister no later than three years after the beginning of the taxation year.

If both spouses would qualify

(5) If an eligible senior and his or her cohabiting spouse or common-law partner are each entitled to a grant under this section, only one of them may apply for the grant for both of them.

Notice and payment

(6) If the Ontario Minister determines that an eligible senior is entitled to a grant under this section, the Ontario Minister,

(a) shall send a notice to the eligible senior setting out the amount of the grant to which he or she is entitled; and

(b) pay the grant to the eligible senior.

Minimum grant

(7) Despite subsection (3), if the amount of an eligible senior's grant under this section for a taxation year, as otherwise calculated, is greater than $1 but less than $25, the amount of the grant for the year is $25.

Small amount

(8) Despite subsection (3), if the amount of an eligible senior's grant under this section for a taxation year, as otherwise calculated, is $1 or less, no grant is payable under this section.

Application of other provisions

(9) Sections 112, 124 and 125 apply with all necessary modifications to a notice referred to in clause (6) (a) as if the notice were a notice of assessment.

Death

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

1. If the eligible senior leaves a surviving cohabiting spouse or common-law partner, the cohabiting spouse or common-law partner, as the case may be, is entitled to receive and retain the grant for the year.

2. In any other case, no person is entitled to receive or retain the deceased's grant and any grant paid after the death of the eligible senior is a debt due to the Crown in right of Ontario and may be recovered in accordance with subsection (15).

No set off

(11) Except as permitted under subsection (15), no portion of a grant under this section 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.

Amount not to be charged

(12) A grant under this section or an entitlement to a grant 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

(13) If, after a grant is paid to an individual under this section, it is determined that the individual received a grant 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

(14) Subsection (13) does not apply if the amount that is repayable in respect of a taxation year is not more than $2.

Collection

(15) An amount payable to the Ontario Minister under paragraph 2 of subsection (10) or subsection (13) constitutes a debt to the Crown 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.

Bankruptcy

(16) If an individual who is an eligible senior for a taxation year was bankrupt at any time in the previous taxation year,

(a) the eligible senior is deemed to have only one taxation year in that previous year, beginning on January 1 and ending on December 31; and

(b) the eligible senior's adjusted income for that previous taxation year is deemed to be the total amount of the eligible senior's adjusted income for the calendar year ending at the end of that taxation year.

31. Subclause 114 (6) (b) (i) of the Act is repealed and the following substituted:

(i) the latest of all days each of which is the last day of a normal reassessment period for a taxation year ending in 2008, as determined under section 80 of the Corporations Tax Act, of the corporation or of a corporation that is a designated corporation with respect to it, or

32. (1) Subsection 116 (1) of the Act is amended by adding "Subject to subsections (1.1) and (1.5)" at the beginning.

(2) Section 116 of the Act is amended by adding the following subsections:

Exception, small-CCPC

(1.1) A Canadian-controlled private corporation that is a small-CCPC may, in respect of each of its taxation years, pay its taxes under this Act to the Ontario Minister in the following manner:

1. The corporation shall pay instalments on account of tax payable under this Act for the year in accordance with one of the following subparagraphs:

i. on or before the last day of each three-month period in the taxation year (or, if the period that remains in the taxation year after the end of the last three-month period is less than three months, on or before the last day of that remaining period), an amount equal to one-quarter of the amount estimated by it to be the total taxes payable by it under this Act for the year,

ii. on or before the last day of each three-month period in the taxation year (or, if the period that remains in the taxation year after the end of the last three-month period is less than three months, on or before the last day of that remaining period), an amount equal to one-quarter of its first instalment base for the year, or

iii. on or before the last day of the first period in the taxation year not exceeding three months, an amount equal to one-quarter of its second instalment base for the year and on or before the last day of each of the following three-month periods in the taxation year (or, if the period that remains in the taxation year after the end of the last three-month period is less than three months, on or before the last day of that remaining period), an amount equal to one-third of the amount by which its first instalment base for the year exceeds the amount payable on or before the last day of the first period in the year.

2. The corporation shall pay the remainder of the taxes payable by it under this Act for the year on or before its balance-due day for the year.

Interpretation, small-CCPC

(1.2) For the purpose of subsection (1.1), a Canadian-controlled private corporation is a small-CCPC at a particular time during a taxation year if the following conditions are satisfied:

1. The amount determined under subsection (1.3) in respect of the corporation for the taxation year or for the previous taxation year does not exceed $400,000.

2. The amount determined under subsection (1.4) in respect of the corporation for the taxation year or for the previous taxation year does not exceed $10 million.

3. An amount is deducted under section 125 of the Federal Act in computing the corporation's tax payable under the Federal Act for the taxation year or for the previous taxation year.

4. Throughout the 12-month period that ends at the time its last remittance under this section is due, the corporation has,

i. remitted all amounts required to be remitted under subsection 153 (1) of the Federal Act, Part IX of the Excise Tax Act (Canada), subsection 82 (1) of the Employment Insurance Act (Canada) or subsection 21 (1) of the Canada Pension Plan (Canada), on or before the day on or before which each amount was required to be remitted, and

ii. filed all returns that were required to be filed under the Federal Act or Part IX of the Excise Tax Act (Canada) on or before the day each of them was required to be filed.

Taxable income, small-CCPC

(1.3) For the purposes of paragraph 1 of subsection (1.2), the amount is,

(a) if the corporation is not associated with another corporation in the particular taxation year, the amount that is the corporation's taxable income for the particular taxation year; or

(b) if the corporation is associated with another corporation in the particular taxation year, the sum of all amounts each of which is the taxable income of the corporation for the particular taxation year or the taxable income of a corporation with which it is associated in the particular taxation year for a taxation year of that other corporation that ends in the particular taxation year.

Taxable capital, small-CCPC

(1.4) For the purposes of paragraph 2 of subsection (1.2), the amount is,

(a) if the corporation is not associated with another corporation in the particular taxation year, the amount that is the corporation's taxable capital employed in Canada, within the meaning assigned by section 181.2 of the Federal Act, for the particular taxation year; or

(b) if the corporation is associated with another corporation in the particular taxation year, the amount that is the sum of all amounts each of which is the taxable capital employed in Canada, within the meaning assigned by section 181.2 of the Federal Act, of the corporation for the particular taxation year or of a corporation with which it is associated in the particular taxation year for a taxation year of that other corporation that ends in the particular taxation year.

Ceases to be a small-CCPC during taxation year

(1.5) Despite subsection (1), if a corporation has remitted amounts in accordance with subsection (1.1) and ceases at any time in a taxation year to be eligible to remit amounts in accordance with subsection (1.1), the corporation shall pay to the Ontario Minister,

(a) the amount determined under subsection (1.6) on or before the last day of each month that ends in the taxation year and after the time it ceased to be eligible to remit amounts under subsection (1.1); and

(b) the remainder of the taxes payable by it under this Act for the year on or before its balance-due day for the year.

Same

(1.6) For the purposes of clause (1.5) (a), the amount is determined using either of the following formulae:

or,

in which,

"A" is the sum of the amounts estimated by the corporation to be the taxes payable by it under this Act for the year,

"B" is the sum of all amounts payable by the corporation for the year in accordance with subsection (1.1),

"C" is the number of months that end in the taxation year and after the time it ceased to be eligible to remit amounts under subsection (1.1), and

"D" is the corporation's first instalment base for the taxation year.

(3) Subsection 116 (4) of the Act is repealed and the following substituted:

Payments if collection agreement in effect

(4) If a collection agreement is in effect and a corporation pays amounts for a taxation year pursuant to a method described in subsection 157 (1), (1.1) or (1.5) of the Federal Act, the corporation shall use the corresponding method in paragraph 1 of subsection (1), paragraph 1 of subsection (1.1) or clause (1.5) (a), as the case may be, in determining the amounts payable for the year under subsection (1), (1.1) or (1.5) for the taxation year.

(4) Subsection 116 (5) of the Act is amended by striking out the portion before paragraph 1 and substituting the following:

When no instalments required

(5) Instead of paying the instalments required for a taxation year under paragraph 1 of subsection (1) or paragraph 1 of subsection (1.1) , a corporation may pay to the Ontario Minister under paragraph 2 of subsection (1) the total of the taxes payable by it under this Act for the year if either of the following amounts is not more than $3,000:

. . . . .

(5) Subsection 116 (6) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Adjustments to instalment payments

(6) Despite subsections (1), (1.1), (1.5) and (4), a corporation may reduce the amount otherwise payable by it under paragraph 1 of subsection (1), paragraph 1 of subsection (1.1) or clause (1.5) (a) on or before the last day of a period in a taxation year by the amount determined by multiplying the fraction determined under subsection (7) by the sum of,

. . . . .

(6) Section 116 of the Act is amended by adding the following subsection:

Same

(7) For the purposes of subsection (6), the fraction is,

(a) one-twelfth if paragraph 1 of subsection (1) or clause (1.5) (a) applies in respect of the period; or

(b) one-quarter if paragraph 1 of subsection (1.1) applies in respect of the period.

33. Paragraph 1 of subsection 125 (2) of the Act is amended by striking out "and" at the end of subparagraph iii, by adding "and" at the end of subparagraph iv and by adding the following subparagraph:

v. the amount of the taxpayer's senior homeowners' property tax grant under section 104.1.

34. (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 or a senior homeowners' property tax grant under section 104.1 in excess of the amount to which the person or other person is entitled;

(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 or the senior homeowners' property tax grant under section 104.1 to which the person or the other person is entitled; or

35. (1) Clauses 172 (1) (a) and (b) of the Act are repealed and the following substituted:

(a) prescribing a percentage for the purposes of paragraph 1, 2 or 3 of subsection 91 (4.1) or paragraph 1, 2 or 3 of subsection 91 (5) and the period of time after December 31, 2007 to which it applies;

(b) prescribing a percentage for the purposes of clause 91 (9) (a.1) or (10) (a.1) or both and the period of time after December 31, 2007 and before January 1, 2010 to which it applies;

(2) Clauses 172 (1) (d) and (e) of the Act are repealed and the following substituted:

(d) prescribing a percentage for the purposes of clause 92 (3) (a.1) and the period of time after December 31, 2007 and before January 1, 2010 to which it applies;

(e) prescribing a percentage for the purposes of clause 92 (3) (b) and the period of time after December 31, 2009 to which it applies;

Commencement

36. (1) Subject to subsections (2), (3) and (4), this Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2008 receives Royal Assent.

Same

(2) Sections 1, 5 to 23, 25, 31 and 32 are deemed to have come into force on January 1, 2008.

Same

(3) Sections 2, 3, 4, 26 to 30, 33 and 34 come into force on January 1, 2009.

Same

(4) Section 24 comes into force on March 26, 2008.

Schedule T
Tobacco Tax Act

1. Section 32 of the Tobacco Tax Act is amended by adding the following subsection:

Regulatory Modernization Act, 2007

(4.1) If this Act or a part of it is designated for the purposes of section 7 or 14 of the Regulatory Modernization Act, 2007,

(a) nothing in this Act prohibits the Minister from disclosing information in accordance with the Regulatory Modernization Act, 2007; and

(b) the requirement in subsection (4) that the communication of information be on a reciprocal basis does not apply in respect of the disclosure by the Minister of information in accordance with the Regulatory Modernization Act, 2007.

Commencement

2. This Schedule comes into force on the day the Budget Measures and Interim Appropriation Act, 2008 receives Royal Assent.

EXPLANATORY NOTE

This Explanatory Note was written as a reader's aid to Bill 44 and does not form part of the law. Bill 44 has been enacted as Chapter 7 of the Statutes of Ontario, 2008.

Schedule A
Assessment Act and Consequential Amendments

The definition of "classification" in section 1 of the Assessment Act is re-enacted to acknowledge that real property may be included in a particular class of property by reason of a regulation made under clause 257.12 (1) (a) of the Education Act. The amendment is retroactive to January 1, 2007 to parallel related amendments to section 257.5 of the Education Act.

Currently, paragraph 18 of subsection 3 (1) of the Act provides an exemption from taxation for machinery and equipment used for producing electric power for sale to the general public. The provision is amended to remove the "sale to the general public" restriction.

A new subsection 32 (1.1) is enacted to provide that, for 2009 and subsequent taxation years, errors in the assessment or classification of the property that result from incorrect factual information (and not from a change in opinion as to current value) may be corrected at any time during the taxation year.

Section 39.1 of the Act is re-enacted to provide that, for 2009 and subsequent taxation years, a request for reconsideration of an assessment must be made to the Municipal Property Assessment Corporation ("MPAC") by March 31 of the taxation year. For supplementary or omitted assessments, a request must be made within 90 days of the mailing of the notice of assessment. Where a request for reconsideration is made, MPAC must mail a notice of decision by September 30 of the taxation year, unless the parties agree to an extension to November 30. For supplementary or omitted assessments, MPAC must mail a notice of decision within 180 days of the request. The Minister of Finance may make regulations governing the disclosure of information on a request for reconsideration.

Section 40 of the Act is re-enacted so that "complaints" to the Assessment Review Board are termed "appeals". Consequential amendments are made to the Assessment Review Board Act, the Condominium Act, 1998, the Conservation Authorities Act and the Provincial Land Tax Act, 2006. An appeal to the Assessment Review Board may be made within 90 days of the mailing of MPAC's notice of decision on a request for reconsideration under section 39.1 of the Act. For properties that are in the residential, farm and managed forests property classes, as well as in such other circumstances as the Minister may prescribe, a request for reconsideration is a prerequisite to appealing. The Minister may make regulations governing the disclosure of information on an appeal.

At any hearing, the person whose assessment is the subject of the appeal is given the opportunity to make a closing statement after all other parties have made their submissions. For 2009 and subsequent taxation years, where value is a ground of appeal, the burden of proof as to the correctness of the current value of the land rests with MPAC.

Schedule B
Capital Investment Plan Act, 1993

The re-enactment of section 66 of the Capital Investment Plan Act, 1993 provides that the expenditures of the Ministry of Finance are to be paid out of the annual appropriation of money for that purpose by the Legislature.

The re-enactment of section 67 of the Act authorizes the Minister of Finance to make grants to organizations, agencies and entities for the purpose of improving the process of managing the flow of goods and services, information and funds within the broader public sector.

Schedule C
City of Toronto Act, 2006

Currently, clause 309 (3) (a) of the City of Toronto Act, 2006 provides that the Minister of Finance may make regulations prescribing information that must or that may be included on property tax bills. The clause is amended to provide that the Minister may prescribe information that must be included with property tax bills as well.

Elsewhere in the Act, amendments are made to change property tax assessment "complaints" to "appeals". These amendments are consequential to amendments to section 40 of the Assessment Act.

Schedule D
Community Small Business Investment Funds Act

Under the current Community Small Business Investment Funds Act, labour sponsored investment fund tax credits are available for investments that qualify for the 2010 or an earlier taxation year. The amendments to the Act extend the eligible period in which to make investments for an additional year to include investments that will qualify for the 2011 taxation year.

Under current legislation, labour sponsored investment fund tax credits are phased out by reductions in the tax credit rate beginning in the 2009 taxation year, with no tax credit available for the 2011 or later taxation years. The Act is amended to provide that the reduction in the tax credit rate will not begin until the 2010 taxation year, with no tax credit available for the 2012 or later taxation years.

The amendments relating to the 2007 and later taxation years also increase the maximum investment that qualifies for the tax credit to $7,500 per year.

Consequential amendments are made to provisions of the Act to extend current deadlines for an additional year to reflect the extension of the tax credit program.

SChedule E
Corporations Tax Act

The amendments to the Corporations Tax Act in this Schedule are to provisions of the Act that apply to corporations for taxation years ending before January 1, 2009. Where applicable, amendments are made in Schedule S to the Taxation Act, 2007 which applies for taxation years ending after December 31, 2008.

The amendments to subsection 41 (3.2) of the Act increase the annual amount of active business income of a Canadian-controlled private corporation that is eligible for the small business deduction from $400,000 to $500,000, starting January 1, 2007.

The amendment to subsection 41.1 (3) of the Act reduces the rate of surtax on Canadian-controlled private corporations from 4.667 per cent to 4.25 per cent, starting January 1, 2007.

The amendments to section 43.5 of the Act increase the general tax credit rate for the Ontario film and television tax credit from 30 per cent to 35 per cent, starting January 1, 2008.

The amendments to section 43.10 of the Act increase the tax credit rate for the Ontario production services tax credit from 18 per cent to 25 per cent for the period of January 1, 2008 to March 31, 2008 and from 11 per cent to 25 per cent, starting April 1, 2008.

The amendments to subsection 43.11 (3) of the Act increase the Ontario interactive digital media tax credit rate from 20 per cent to 25 per cent for corporations with total assets that exceed $10 million or total revenues that exceed $20 million and for corporations that develop specified products.

The amendment to subsection 43.11 (5) of the Act extends the period of time during which eligible labour expenditures qualify for the Ontario interactive digital media tax credit from 24 months before product completion to 36 months before product completion.

The amendments to sections 57.1, 57.4 and 57.5 of the Act implement changes related to Ontario's corporate minimum tax. Amendments to section 57.1 of the Act exclude accounting gains and losses in determining the total assets of a corporation for corporate minimum tax purposes if the accounting gains and losses are attributable to changes in the fair value of property during the period the corporation holds the property.

The amendments to section 57.5 of the Act provide that the continuation of losses for corporate minimum tax purposes does not apply after certain amalgamations or windings-up of corporations, in order to prevent double counting of those losses.

Currently, capital tax rates are scheduled to be reduced as of January 1, 2009. The amendments to sections 66 and 66.1 of the Act change the effective date for the capital tax rate reduction to January 1, 2007. The re-enactment of subsections 66 (1.2) and (4.4) of the Act is required because capital tax is not imposed under the Act for taxation years ending after December 31, 2008.

The amendment to section 72 of the Act is required by reason of the enactment of section 72.1 of the Act.

The enactment of section 72.1 of the Act provides a capital tax exemption, starting January 1, 2007, for a corporation whose Ontario manufacturing labour cost for a taxation year is at least 50 per cent of its total Ontario labour cost for the year. A phased-out capital tax reduction is available if a corporation's Ontario manufacturing labour cost for the year is less than 50 per cent but more than 20 per cent of its total Ontario labour cost for the year.

Minor technical amendments are made to the Act.

Schedule F
Education Act

Currently, the Education Act authorizes the Minister of Finance to prescribe classes of business property and classes of residential property for education tax purposes that are classes of property prescribed under the Assessment Act, other than classes listed in subsection 7 (2) of that Act. The amendments will authorize the Minister to prescribe classes of business property and classes of residential property for education tax purposes for 2007 and later years that are not necessarily prescribed classes of property for municipal tax or provincial land tax purposes.

Schedule G
Electricity Act, 1998

Schedule G amends the Electricity Act, 1998 to provide a process for reviewing reliability standards set by the North American Electric Reliability Corporation and other standards authorities.

In new section 36.2 of the Act, the Independent Electricity System Operator is required to give public notice of a reliability standard within seven days after it is notified that the standard has been approved by the standards authority. Any person may apply to the Ontario Energy Board for a review of the standard within 21 days after its publication and the Board may initiate a review of the standard in the same time period, or later if a longer time period is permitted by regulation. Upon completion of its review, the Board shall make an order cancelling the operation of the standard in Ontario and sending it back to the standards authority for further consideration if it finds that the standard is inconsistent with the purposes of the Act or unjustly discriminates against or in favour of a market participant or class of market participants. The Board may make the same order if it is necessary to do so in order to co-ordinate with other jurisdictions in North America that implement the standards authority's reliability standards. The Lieutenant Governor in Council may make regulations prescribing additional grounds on which the Board shall or may make this order.

In new section 36.3 of the Act, the Independent Electricity System Operator may appeal to the Ontario Energy Board an order, finding or remedial action made or taken by a standards authority. The Board may make an order revoking or amending the order, finding or remedial action or may make any other order, finding or decision or take any other remedial action that the standards authority could have made or taken. The Board may also make an order revoking, suspending, adding or amending a condition of the Independent Electricity System Operator's licence.

Housekeeping amendments are made to change obsolete references to the Provincial Auditor to the Auditor General.

Schedule H
Financial Administration Act

New section 16.0.2 of the Financial Administration Act permits the determination of whether a ministry has incurred a liability in a particular fiscal year to be determined in accordance with the accounting principles set out in the Public Accounts for that year. Additional matters to be determined in a similar manner may be prescribed by the Lieutenant Governor in Council under new clause 38 (c.2.1) of the Act.

Schedule I
Income Tax Act

Section 8 of the Income Tax Act provides a tax credit in respect of investments made by individuals in labour sponsored investment fund corporations registered under Part III of the Community Small Business Investment Funds Act. The amendments relating to taxation years ending in 2007 and 2008 reflect the increase in the maximum investment that qualifies for the tax credit to $7,500 per year under the amendments to the Community Small Business Investment Funds Act in Schedule D. Amendments are made to the Taxation Act, 2007 in Schedule S for taxation years ending after December 31, 2008.

Technical amendments are made to sections 4, 4.0.1, 8.5 and 8.6.2 of the Act.

Schedule J
interim appropriation act, 2008

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

Schedule K
lAND tRANSFER tAX Act

Section 5.4 of the Land Transfer Tax Act permits the Minister and the City of Toronto to enter into an agreement to exchange information on a reciprocal basis relating to land transfer tax imposed under this Act and by the City under a by-law made under section 267 of the City of Toronto Act, 2006.

Currently, section 9.2 of the Act provides for a refund of land transfer tax of up to $2,000 to first-time home purchasers if the home is a newly constructed home. An amendment to the section extends the refund to homes which are not newly constructed homes. To qualify, the agreement of purchase and sale in respect of the home must be entered into after December 13, 2007.

Schedule L
Liquor Control Act

Section 3 of the Liquor Control Act is amended to provide the Liquor Control Board with the power to borrow, subject to the approval of the Minister and the Minister of Finance. The Board is required to borrow to pay for major capital expenditures in accordance with section 3.

Schedule M
Ministry of Revenue Act

A new section 6.1 is added to the Ministry of Revenue Act in connection with the transfer to the Canada Revenue Agency of the administration of certain Ontario statutes that impose taxes on corporations and the associated transfer of certain Ministry employees ("eligible former employees") to the Agency beginning in April 2008.

Section 6.1 of the Act governs pension arrangements for the eligible former employees of the Ministry. Provision is made for them to be given information about their entitlements under the Public Service Pension Plan (Ontario) or the OPSEU Pension Plan (Ontario), as the case may be. If an eligible former employee of the Ministry elects to transfer his or her accrued pension credits from the Ontario pension plan to the Public Service Superannuation Plan (Canada), the administrator of the Ontario pension plan is authorized to transfer the assets to the federal pension plan in accordance with the existing reciprocal transfer agreements filed under the Pension Benefits Act. If an eligible former employee elects to make such a transfer, certain provisions of the Pension Benefits Act governing the rights of transferred employees in successorship situations cease to apply to him or her.

Schedule N
Ministry of Treasury and Economics Act

Subsection 10 (2) of the Ministry of Treasury and Economics Act refers to the Management Board of Cabinet. The amendment to that section corrects the reference which should be to Treasury Board.

Schedule O
Municipal Act, 2001

Currently, clause 344 (3) (a) of the Municipal Act, 2001 provides that the Minister of Finance may make regulations prescribing information that must or that may be included on property tax bills. The clause is amended to provide that the Minister may prescribe information that must be included with property tax bills as well.

Elsewhere in the Act, amendments are made to change property tax assessment "complaints" to "appeals". These amendments are consequential to amendments to section 40 of the Assessment Act.

Schedule P
Ontario Loan Act, 2008

The Ontario Loan Act, 2008 is enacted. It authorizes the Crown to borrow a maximum of $6.2 billion.

Schedule Q
Ontario Lottery and Gaming Corporation Act, 1999

Section 4 of the Ontario Lottery and Gaming Corporation Act, 1999 is amended to make borrowing by the Corporation subject to such terms and conditions as the Minister and the Minister of Finance consider advisable. Section 13.1 is added to the Act. It provides that if the Corporation proposes to undertake a major capital expenditure, it shall borrow the necessary funds with the approval of the Minister and the Minister of Finance.

Schedule R
Retail Sales Tax Act

The definition of "automobile insurance" in subsection 1 (1) of the Retail Sales Tax Act is re-enacted to refer to automobile insurance required for motor vehicles required to be insured under the Compulsory Automobile Insurance Act. The amendments to section 2.1 of the Act are consequential upon the phase-in of the tax exemption relating to automobile insurance.

The definition of "returnable container" in subsection 1 (1) of the Act is re-enacted to include tangible personal property used in the packaging, storage or shipping of other tangible personal property if it is intended that the tangible personal property used in the packaging, storing or shipping is to be returned for reuse.

Subsection 1 (1.1) of the Act is amended to extend the current exemption for destination marketing fees to June 30, 2010.

The enactment of subsection 6 (3) of the Act provides that a seller of tangible personal property in a sale in bulk remains liable for any amount owing under the Act despite the issuance of a clearance certificate under section 6 of the Act.

The amendment to paragraph 41 of subsection 7 (1) of the Act provides that no tax exemption is available in respect of tangible personal property that is attached to other tangible personal property and that is provided to a person by way of a promotional distribution.

Paragraph 69 of subsection 7 (1) of the Act authorizes a tax exemption on the purchase after November 30, 2007 and before January 1, 2011 of bicycles at a price of $1,000 or less and bicycle safety equipment, including bicycle helmets.

Paragraph 70 of subsection 7 (1) of the Act provides a tax exemption on the purchase of new non-commercial Energy Star® appliances after July 19, 2007 and before September 1, 2009, as long as delivery to the purchaser is before October 1, 2009.

Paragraph 71 of subsection 7 (1) of the Act provides a tax exemption on the purchase of Energy Star® light bulbs and decorative lighting after July 19, 2007 and before September 1, 2009.

Paragraph 72 of subsection 7 (1) of the Act provides a tax exemption on the purchase of nicotine replacement therapies for which a drug identification number or natural product number has been issued by Health Canada.

Subsection 9 (2.1) of the Act provides a tax exemption on the purchase of admission to a live performance at a theatre, including a dinner theatre, that seats not more than 3,200 people.

Clause 48 (2) (m) of the Act authorizes the Lieutenant Governor in Council to prescribe additional circumstances in which interest is payable under the Act and the rate of interest or the method of determining the amount of the interest.

Schedule S
Taxation Act, 2007

The Taxation Act, 2007 applies to individuals and corporations in respect of taxation years ending after December 31, 2008. Amendments required for taxation years ending before January 1, 2009 are included in Schedule E which amends the Corporations Tax Act and in Schedule I which amends the Income Tax Act.

Section 22 of the Act provides a personal income tax credit in respect of investments made by individuals in labour sponsored investment fund corporations registered under Part III of the Community Small Business Investment Funds Act. Under the current Taxation Act, 2007, the tax credits are phased out through a reduction in the tax credit rates, starting with the 2009 taxation year. The amendment to section 22 of the Act delays the start of the reduction in the tax credit rate until the 2010 taxation year and increases the maximum amount of the tax credit for 2009, 2010 and 2011 to reflect the increase in the maximum investment that qualifies for the tax credit to $7,500 per year under the amendments to the Community Small Business Investment Funds Act in Schedule D.

The amendment to section 31 of the Act increases the annual amount of active business income of a Canadian-controlled private corporation that is eligible for the small business deduction from $400,000 to $500,000.

The amendments to section 32 of the Act reduce the rate of surtax on Canadian-controlled private corporations from 4.667 per cent to 4.25 per cent.

The amendments to sections 54, 57 and 58 of the Act implement changes related to Ontario's corporate minimum tax. Amendments to section 54 of the Act exclude accounting gains and losses in determining the total assets of a corporation for corporate minimum tax purposes if the accounting gains and losses are attributable to changes in the fair value of property during the period the corporation holds the property.

The amendments to section 58 of the Act provide that the continuation of losses for corporate minimum tax purposes is terminated in certain cases on an amalgamation or winding-up of a corporation to prevent double counting of those losses.

The amendment to subsection 64 (1) of the Act is required because capital tax is no longer imposed after June 30, 2010 under the current Act.

Under the current Corporations Tax Act, the capital tax rate for corporations is scheduled to be reduced, starting January 1, 2009. Amendments to that Act in Schedule E provide that the reduction starts January 1, 2007. The amendments to sections 72 and 73 and subsection 82 (2) of the Taxation Act, 2007 implement the capital tax rate reduction for taxation years ending after December 31, 2008.

The re-enactment of subsection 82 (1) of the Act and the enactment of section 83.1 of the Act implement a new capital tax credit for corporations carrying on manufacturing or certain other specified activities. No capital tax is payable by a corporation for a taxation year if its Ontario manufacturing labour cost is at least 50 per cent of its total Ontario labour cost for the year. A phased-out capital tax reduction is available if the corporation's Ontario manufacturing labour cost is less than 50 per cent but more than 20 per cent of its total Ontario labour cost for the year.

The amendments to section 91 of the Act increase the general tax credit rate for the Ontario film and television tax credit from 30 per cent to 35 per cent for the period of January 1, 2008 to December 31, 2009.

The amendments to section 92 of the Act increase the tax credit rate for the Ontario production services tax credit from 18 per cent to 25 per cent for the period of January 1, 2008 to March 31, 2008 and from 11 per cent to 25 per cent for the period of April 1, 2008 to December 31, 2009.

The amendments to subsection 93 (2) of the Act increase the Ontario interactive digital media tax credit rate from 20 per cent to 25 per cent for corporations with total assets that exceed $10 million or total revenues that exceed $20 million and for corporations that develop specified products. The increased tax credit rate applies to qualifying expenditures incurred after March 25, 2008 and before January 1, 2012. The amendments also extend the tax credit rate of 30 per cent for qualifying small corporations that develop eligible products, other than specified products, to qualifying expenditures incurred after December 31, 2009 and before January 1, 2012.

The amendment to subsection 93 (4) of the Act extends the period of time during which eligible labour expenditures qualify for the Ontario interactive digital media tax credit from 24 months before product completion to 36 months before product completion.

Section 104.1 of the Act implements the senior homeowners' property tax grant for 2009 and subsequent years. The maximum grant is $250 for 2009 and $500 for 2010 and subsequent years. The grant is reduced if a couple's adjusted income for the previous year exceeds $45,000 in the case of a senior who has a cohabiting spouse or common-law partner. In the case of a senior who has no cohabiting spouse or common-law partner, the grant is reduced if his or her adjusted income for the previous year exceeds $35,000.

The amendments to section 116 of the Act provide that Ontario corporation tax instalments are determined on a consistent basis with recently amended federal corporate tax instalment rules. These amendments allow eligible small corporations to remit instalments on a quarterly basis instead of the current monthly basis. The tax threshold at which instalments become payable for a taxation year is increased from $1,000 in tax for the taxation year or the previous year to $3,000.

The Schedule contains technical and housekeeping amendments to the Act.

Schedule T
Tobacco Tax Act

New subsection 32 (4.1) of the Tobacco Tax Act provides that if all or part of the Act is designated for the purposes of section 7 or 14 of the Regulatory Modernization Act, 2007, the Minister may disclose information in accordance with that Act. The requirement in subsection 32 (4) of the Tobacco Tax Act that the communication of information be on a reciprocal basis does not apply in respect of the disclosure by the Minister of any information in accordance with the Regulatory Modernization Act, 2007.

[39] Bill 44 Original (PDF)

Bill 44 2008

An Act respecting Budget measures, interim appropriations and other matters

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

CONTENTS

1.	Contents of this Act
2.	Commencement
3.	Short title
Schedule A	Assessment Act and Consequential Amendments
Schedule B	Capital Investment Plan Act, 1993
Schedule C	City of Toronto Act, 2006
Schedule D	Community Small Business Investment Funds Act
Schedule E	Corporations Tax Act
Schedule F	Education Act
Schedule G	Electricity Act, 1998
Schedule H	Financial Administration Act
Schedule I	Income Tax Act
Schedule J	Interim Appropriation Act, 2008
Schedule K	Land Transfer Tax Act
Schedule L	Liquor Control Act
Schedule M	Ministry of Revenue Act
Schedule N	Ministry of Treasury and Economics Act
Schedule O	Municipal Act, 2001
Schedule P	Ontario Loan Act, 2008
Schedule Q	Ontario Lottery and Gaming Corporation Act, 1999
Schedule R	Retail Sales Tax Act
Schedule S	Taxation Act, 2007
Schedule T	Tobacco Tax Act
___________

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

Contents of this Act

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

Commencement

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

Same

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

Same

Short title

3. The short title of this Act is the Budget Measures and Interim Appropriation Act, 2008.

Schedule A
Assessment Act and consequential amendments

1. (1) The definition of "classification" in section 1 of the Assessment Act is repealed and the following substituted:

"classification" means a determination of the class or subclass of real property that land is in, including a class of property prescribed under clause 257.12 (1) (a) of the Education Act, and "classified" has a corresponding meaning; ("classification", "classé")