chapter 29
An Act to implement
Budget measures
Assented to December 16, 2004
Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:
Income Tax Act
1. Subsection 1 (1) of the Income Tax Act, as amended by the Statutes of Ontario, 1993, chapter 29, section 1, 1996, chapter 1, Schedule C, section 1, 1996, chapter 24, section 11, 1998, chapter 34, section 65, 1999, chapter 9, section 115, 2000, chapter 10, section 11, 2000, chapter 42, section 47, 2002, chapter 22, section 103 and 2004, chapter 16, section 3, is amended by adding the following definition:
“Ontario Health Premium” means the tax described in section 2.2; (“contribution-santé de l’Ontario”)
2. The Act is amended by adding the following section:
Ontario Health Premium
2.2 (1) Every individual shall pay a tax, called the Ontario Health Premium, for a taxation year ending after December 31, 2003 if the individual is resident in Ontario on the last day of the taxation year.
Dual residency
(2) If, on the last day of a taxation year, an individual is resident both in Ontario and in another jurisdiction, the individual shall be deemed for the purposes of this section to reside on that day in only that jurisdiction that may reasonably be regarded as the individual’s principal place of residence.
Exception, trust
(3) Despite subsection (1), a trust is not required to pay the Ontario Health Premium.
Amount
(4) The amount of the Ontario Health Premium payable by an individual for a taxation year is as determined under section 3.1.
3. Subsection 3 (2) of the Act, as enacted by the Statutes of Ontario, 1991, chapter 47, section 1 and amended by 2004, chapter 16, section 3, is repealed and the following substituted:
Gross tax amount
(2) The gross tax amount of an individual for a taxation year for the purposes of subsection (1) is the amount of tax that would be payable by the individual for the taxation year under this Act,
(a) before the addition of any amount determined under subsection (1) or any amount payable under section 2.2; and
(b) before the deduction of any amount under subsection 4 (6) or any amount under section 8.
4. The Act is amended by adding the following section:
Calculation of the Ontario Health Premium
3.1 (1) The following is the amount of the Ontario Health Premium payable by an individual for a taxation year:
1. If the individual’s taxable income for the year does not exceed $20,000, the individual’s Ontario Health Premium for the year is nil.
2. If the individual’s taxable income for the year exceeds $20,000 but does not exceed $36,000, the individual’s Ontario Health Premium for the year is the amount calculated using the formula,
0.06 × A
in which,
“A” is the lesser of $5,000 and the amount of the individual’s taxable income in excess of $20,000 for the year.
3. If the individual’s taxable income for the year exceeds $36,000 but does not exceed $48,000, the individual’s Ontario Health Premium for the year is the amount calculated using the formula,
B + (0.06 × C)
in which,
“B” is $300, and
“C” is the lesser of $2,500 and the amount of the individual’s taxable income in excess of $36,000 for the year.
4. If the individual’s taxable income for the year exceeds $48,000 but does not exceed $72,000, the individual’s Ontario Health Premium for the year is the amount calculated using the formula,
D + (0.25 × E)
in which,
“D” is $450, and
“E” is the lesser of $600 and the amount of the individual’s taxable income in excess of $48,000 for the year.
5. If the individual’s taxable income for the year exceeds $72,000 but does not exceed $200,000, the individual’s Ontario Health Premium for the year is the amount calculated using the formula,
F + (0.25 × G)
in which,
“F” is $600, and
“G” is the lesser of $600 and the amount of the individual’s taxable income in excess of $72,000 for the year.
6. If the individual’s taxable income for the year exceeds $200,000, the individual’s Ontario Health Premium for the year is the amount calculated using the formula,
H + (0.25 × J)
in which,
“H” is $750, and
“J” is the lesser of $600 and the amount of the individual’s taxable income in excess of $200,000 for the year.
Bankruptcy
(2) For the purposes of subsection (1), if an individual is bankrupt at any time in a year,
(a) the individual shall be deemed to have only one taxation year in the year, and that taxation year begins on January 1 and ends on December 31; and
(b) the individual’s taxable income for the taxation year shall be deemed to be the total amount of the individual’s taxable income for the year.
Death
(3) For the purposes of subsection (1), the taxable income of an individual who dies in a particular year does not include income that is reported in a return filed as a result of an election made under subsection 70 (2), 104 (23) or 150 (4) of the Federal Act.
Transition, 2004
(4) The amount of the Ontario Health Premium payable by an individual for a taxation year that ends on or before December 31, 2004 is 50 per cent of the amount otherwise calculated under subsection (1).
5. (1) Subsection 4 (3) of the Act, as re-enacted by the Statutes of Ontario, 2000, chapter 42, section 50 and amended by 2004, chapter 16, section 3, is amended by striking out “sections 3 and 4.3 to 4.8” in the portion before paragraph 1 and substituting “sections 2.2, 3 and 4.3 to 4.8”.
(2) Clause 4 (7) (b) of the Act, as re-enacted by the Statutes of Ontario, 2000, chapter 10, section 13 and amended by 2004, chapter 16, section 3, is amended by striking out the portion before subclause (i) and substituting the following:
(b) the expressions “tax payable” and “tax otherwise payable” mean the amount of tax calculated under this Act that would be payable for a taxation year, other than the Ontario Health Premium,
. . . . .
6. The definition of “tax otherwise payable” in subsection 7 (3) of the Act, as re-enacted by the Statutes of Ontario, 1993, chapter 29, section 5 and amended by 2004, chapter 16, section 3, is repealed and the following substituted:
“tax otherwise payable” for a taxation year means the amount of tax payable under this Act for the taxation year, other than the Ontario Health Premium,
(a) after the deduction, if any, permitted under subsection 4 (6), and
(b) before any deduction permitted by section 8 or this section. (“impôt payable par ailleurs”)
7. The definitions of “tax payable” and “tax otherwise payable” in subsection 8 (1) of the Act, as amended by the Statutes of Ontario, 2000, chapter 42, section 55 and 2004, chapter 16, section 3, are repealed and the following substituted:
“tax payable” and “tax otherwise payable” mean the amount of tax that would be payable under this Act, other than the Ontario Health Premium, if the tax were calculated without reference to section 120.1 of the Federal Act and without reference to this section and subsections 4 (3.4) and (3.5) of this Act. (“impôt payable”, “impôt payable par ailleurs”)
8. Subsection 23 (2) of the Act, as re-enacted by the Statutes of Ontario, 1996, chapter 24, section 17 and amended by 1998, chapter 34, section 80 and 2004, chapter 16, section 3, is amended by adding the following clause:
(d.1) the amount of the Ontario Health Premium payable by a taxpayer for a taxation year, based on the amount of the individual’s taxable income for that year;
9. The Act is amended by adding the following sections:
Report about revenue from the Ontario Health Premium
29.1 The Public Accounts for each fiscal year shall include information about the use of the revenue from the Ontario Health Premium.
Review of Ontario Health Premium
29.2 (1) A standing or select committee of the Assembly shall be appointed to review the Ontario Health Premium within four years after this section comes into force.
Same
(2) The committee shall begin its review on or after the date specified by the Assembly, which date shall be no earlier than June 30, 2008, and shall report the results of its review to the Assembly no later than December 31, 2008.
Trust Beneficiaries’ Liability Act, 2004
10. The Trust Beneficiaries’ Liability Act, 2004, as set out in Schedule A, is enacted.
Commencement and Short Title
Commencement
11. (1) Subject to subsection (2), this Act comes into force on the day it receives Royal Assent.
Same
(2) Sections 1 to 9 shall be deemed to have come into force on January 1, 2004.
Short title
12. The short title of this Act is the Budget Measures Act, 2004 (No. 2).
Schedule A
trust beneficiaries’ liability Act, 2004
Limit on beneficiaries’ liability
1. (1) The beneficiaries of a trust are not, as beneficiaries, liable for any act, default, obligation or liability of the trust or any of its trustees if, when the act or default occurs or the obligation or liability arises,
(a) the trust is a reporting issuer under the Securities Act; and
(b) the trust is governed by the laws of Ontario.
Exception
(2) Subsection (1) does not apply with respect to any act or default that occurred or any obligation or liability that arose before this Act came into force.
Governing law
(3) For the purposes of this section,
(a) a trust shall be deemed to be governed by the laws of Ontario if the trust instrument states that it is governed by the laws of Ontario;
(b) a trust shall be deemed not to be governed by the laws of Ontario if the trust instrument states that the trust is governed by the laws of another jurisdiction; and
(c) in case of a conflict between clauses (a) and (b), the trust is governed by the laws of the jurisdiction specified by the court.
Definition
(4) In this section,
“trust instrument” means, in relation to a trust, the document or documents that establish and govern the trust, but does not include a judgment or order of a court.
Liability in other circumstances
2. This Act does not affect the liability, if any, of the beneficiaries of a trust in any other circumstances.
Commencement
3. The Act set out in this Schedule comes into force on the day the Budget Measures Act, 2004 (No. 2) receives Royal Assent.
Short title
4. The short title of the Act set out in this Schedule is the Trust Beneficiaries’ Liability Act, 2004.