O. Reg. 155/03: TAX INCENTIVE FOR INVESTING IN ONTARIO JOBS AND OPPORTUNITY BONDS

Corporations Tax Act
Loi sur l’imposition des sociétés

ONTARIO REGULATION 155/03

TAX INCENTIVE FOR INVESTING IN ONTARIO JOBS AND OPPORTUNITY BONDS

Historical version for the period April 23, 2003 to December 29, 2008.

No amendments.

This Regulation is made in English only.

Tax incentive

1. The tax incentive to which a corporation is entitled under subsection 37.1 (2) of the Act in respect of the interest received or receivable by the corporation on an Ontario Jobs and Opportunity Bond in a taxation year is the deduction described in section 2. O. Reg. 155/03, s. 1.

Amount of deduction

2. (1) In computing its income from a business or property for a taxation year for the purposes of Part II of the Act, a corporation may deduct the amount calculated using the formula “A – B” in which,

“A” is the total of all amounts, each of which is interest in respect of an Ontario Jobs and Opportunity Bond that is included in computing the corporation’s income for the taxation year under section 12 or subsection 20 (14) of the Income Tax Act (Canada), and

“B” is the total of all amounts, each of which is a deduction that is claimed by the corporation for the taxation year under subsection 20 (14) of the Income Tax Act (Canada) in respect of interest on an Ontario Jobs and Opportunity Bond that was included in income in the year.

O. Reg. 155/03, s. 2 (1).

(2) If a corporation is a member of a partnership at the end of a taxation year and the partnership owns an interest in an Ontario Jobs and Opportunity Bond in a fiscal period of the partnership that ends in the taxation year, the amount of the corporation’s deduction under this section in respect of the interest on the Bond cannot exceed the amount that may reasonably be considered to be the share of the interest to which the corporation is entitled under the partnership agreement. O. Reg. 155/03, s. 2 (2).

(3) No deduction may be claimed by a corporation under subsection 20 (21) of the Income Tax Act (Canada), as that subsection is made applicable for the purposes of the Act by subsection 11 (1) of the Act, in respect of interest on an Ontario Jobs and Opportunity Bond if the interest was included in income in the taxation year or in a preceding taxation year. O. Reg. 155/03, s. 2 (3).

Information return, brokers and dealers of securities

3. (1) Every broker or dealer of securities shall give the Minister an information return respecting each corporation that maintains an account with the broker or dealer at any time in the year and owns an Ontario Jobs and Opportunity Bond at any time in the year through the account of the broker or dealer. O. Reg. 155/03, s. 3 (1).

(2) The information return must be filed with the Minister in a form approved by the Minister. O. Reg. 155/03, s. 3 (2).

(3) The information return must contain the following information:

1. The name and address of the corporation.

2. The amount of interest on any Bond owned by the corporation at any time in the year that is required to be reported in a return under subsection 201 (1) or (4) of the regulations made under the Income Tax Act (Canada).

3. If the corporation indicates to the broker or dealer that the corporation holds the Bond through a partnership, the following information in respect of the partnership:

i. The name and address of the partnership.

ii. The business number of the partnership issued by the Canada Customs and Revenue Agency, if available. O. Reg. 155/03, s. 3 (3).

(4) The information return in respect of a year must be filed no later than the last day of February of the following year. O. Reg. 155/03, s. 3 (4).

(5) The broker or dealer of securities shall also give the information contained in the information return to a corporation or partnership, to the extent that the information in the return relates to the corporation or partnership. O. Reg. 155/03, s. 3 (5).

Information return, the Authority

4. (1) The Ontario Municipal Economic Infrastructure Financing Authority shall, either directly or through an agent, give the Minister an information return respecting each corporation that owns an Ontario Jobs and Opportunity Bond at any time in a year, if the ownership is reflected in the records of the Authority or its agent, unless the corporation purchased the Bond from a broker or dealer of securities. O. Reg. 155/03, s. 4 (1).

(2) The information return must be filed with the Minister in a form approved by the Minister. O. Reg. 155/03, s. 4 (2).

(3) The information return must contain the following information:

1. The name and address of the corporation.

2. The amount of interest on any Bond owned by the corporation at any time in the year that is required to be reported in a return under subsection 201 (1) or (4) of the regulations made under the Income Tax Act (Canada).

3. If the corporation indicates to the Authority that the corporation holds the Bond through a partnership, the following information in respect of the partnership:

i. The name and address of the partnership.

ii. The business number of the partnership issued by the Canada Customs and Revenue Agency, if available. O. Reg. 155/03, s. 4 (3).

(4) The information return in respect of a year must be filed no later than the last day of February of the following year. O. Reg. 155/03, s. 4 (4).

(5) The Ontario Municipal Economic Infrastructure Financing Authority shall also give the information contained in the information return to a corporation or partnership, to the extent that the information in the return relates to the corporation or partnership. O. Reg. 155/03, s. 4 (5).

Late returns

5. The Minister may accept an information return that is not filed on time,

(a) if the information return is filed no later than two years after the last date by which it is required to be filed under this Regulation; and

(b) if the Minister is satisfied that the person or entity was unable to file the information return at an earlier time for reasons beyond the control of the person or entity. O. Reg. 155/03, s. 5.

6. Omitted (provides for coming into force of provisions of this Regulation). O. Reg. 155/03, s. 6.