The following definitions are relevant for the purposes of the farmed land exemption, and can be found in the Land Transfer Tax Act and Regulation 697, R.R.O. 1990.

Family farm corporation

A corporation is a family farm corporation at the time of conveyance of the land to or from the corporation if all of the following three conditions are satisfied:

  1. All of the issued shares of the corporation at the time of the conveyance, other than directors' qualifying shares, are owned by one or more persons, each of whom is,
    1. a member of the family of each transferor, if the conveyance of land is to the corporation, or
    2. a member of the family of each transferee, if the conveyance of land is from the corporation to one or more transferees.
  1. At least 95 per cent of the value of the corporation's assets at the time of the land conveyance, including the land being conveyed, is attributable to farming assets.
  2. If a member of the family of a transferor referred to in subparagraph (1. i) or a transferee referred to in subparagraph (1. ii) is a corporation, at least 95 per cent of the value of the total assets of that member of the family is attributable to farming assets.


Farming includes tillage of the soil, the breeding, raising or grazing of livestock of all kinds, the raising of poultry and the production of poultry products, fur farming, dairy farming, fruit growing, the growing of food for human consumption or for the feeding of livestock and the keeping of bees, but does not include the leasing out of land where the lessor is not entitled to share in the crops, livestock or other commodities raised or produced on the land or the proceeds of the sale of such crops, livestock or other commodities so raised or produced.

Farming assets

Farming assets of a family farm corporation, means:

  1. land, buildings, equipment, machinery and livestock that are used chiefly in farming by the corporation
  2. any right or licence granted or issued under any Act of the Legislature that permits or regulates the production or sale of any commodity or thing produced, raised or grown through farming
  3. the building in which a shareholder or one or more members of his or her family reside who are engaged in farming if that building is on land that is used or is contiguous to land used in farming by that shareholder or those members of his or her family
  4. shares in another family farm corporation, and
  5. trade accounts receivable, supplies and inventory of commodities or things produced, raised or grown through farming.

Members of the family

Members of the family means, with respect to an individual:

  1. the individual
  2. the individual's spouse
  3. the individual's child
  4. the individual's father, mother, brother or sister or any spouse or descendant of such brother or sister
  5. the brother or sister of the individual's father or mother or any descendant of any such brother or sister
  6. the father, mother or any brother or sister of the individual's spouse or any descendant of any such brother or sister
  7. the individual's son in law or daughter‑in‑law
  8. the individual's grandfather or grandmother
  9. the individual's grandchild or great‑grandchild or the spouse of any such grandchild or great‑grandchild, or
  10. a corporation all of the issued share of which except for directors' qualifying shares, are owned by an individual or individuals, each of whom is related to the individual to whom the expression is being applied in the manner described in any of clauses (a) to (i).


Child means child as defined in subsection 1 (1) of the Family Law Act.

This includes a person whom a parent has demonstrated a settled intention to treat as a child of his or her family, except under an arrangement where the child is placed for valuable consideration in a foster home by a person having lawful custody.


Spouse means spouse as defined in section 29 of the Family Law Act.

At present, spouse means either of two persons who are married to each other, or who are not married to each other and who have cohabited,

  1. continuously for a period of not less than three years, or
  2. in a relationship of some permanence, if they are the natural or adoptive parents of a child.