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Employer Health Tax Act
Loi sur l’impôt-santé des employeurs

R.R.O. 1990, REGULATION 319

GENERAL

Historical version for the period May 23, 2006 to March 6, 2011.

Last amendment: O. Reg. 223/06.

This Regulation is made in English only.

1. The prescribed amount for 1990 and subsequent years for the purposes of the definition of “small employer” in subsection 1 (1) of the Act is $400,000. O. Reg. 816/94, s. 1.

2. (1) The following are the prescribed times at which an employer is required to pay instalments to the Minister under paragraph 1 of subsection 3 (1) of the Act:

1. For payments on account of tax payable for a year ending after December 31, 2004, February 15 of the year and the 15th day of each of the following 11 months.

2. For payments on account of tax payable for a year ending before January 1, 2005, the 15th day of each month in the year. O. Reg. 307/04, s. 1.

(2) Revoked: O. Reg. 307/04, s. 1.

(3) The prescribed time at which a self-employed individual is required to pay the instalment to the Minister under paragraph 3 of subsection 3 (1) of the Act on account of the tax payable for a year is November 15 of the year. O. Reg. 816/94, s. 2.

(4) The prescribed amount for the purposes of subsection 3 (3) of the Act is $100. O. Reg. 816/94, s. 2.

(5) If a self-employed individual dies between January 1 and November 15, inclusive, in a year, the personal representative and heirs of the deceased self-employed individual are prescribed to be exempt from any requirement to pay the instalment that otherwise would have been payable by the deceased self-employed individual on November 15 in that year. O. Reg. 816/94, s. 2.

3. (1) The prescribed date on or before which the return for a year is required to be delivered under subsection 5 (1) of the Act with respect to the tax payable by a taxpayer as an employer is,

(a) in the case of a taxpayer who is an employer to whom clause 3 (2) (b) of the Act applies, the 15th day of the month following the month in which the employer paid the total Ontario remuneration for the year; and

(b) March 15 of the following year, in the case of a taxpayer who is an employer other than an employer to whom clause 3 (2) (b) of the Act applies. O. Reg. 816/94, s. 3 (1).

Note: Subsection (1) applies to returns for 1993 and subsequent years. See: O. Reg. 816/94, s. 7 (1).

(1.1) The prescribed date on or before which a return for a year is required to be delivered under section 5 of the Act with respect to the tax payable by a taxpayer as a self-employed individual shall be the date determined under the following rules:

1. Unless the taxpayer dies during the year, the return for the year shall be delivered on or before June 15 of the following year.

2. If the taxpayer dies on or before June 15 of the year,

i. the return for the year in which the taxpayer dies, and any separate return for that year referred to in subsection 5 (9) of the Act, shall be delivered on or before June 15 of the following year, and

ii. any return that is required to be, but has not been, delivered in respect of the year before the year in which the taxpayer dies shall be delivered on or before the day that is six months after the date of the taxpayer’s death.

3. If the taxpayer dies after June 15 of the year, the return for the year, and any separate return for that year referred to in subsection 5 (9) of the Act, shall be delivered on or before June 15 of the following year or the day that is six months after the date of the taxpayer’s death, whichever is the later day. O. Reg. 178/96, s. 1.

Note: Subsection (1.1) applies to returns required to be delivered for 1995 and subsequent years. See: O. Reg. 178/96, s. 2.

(2) For purposes of subsection 5 (2) of the Act, an employer who ceases to have a permanent establishment in Ontario shall deliver the return for the year within forty days after the employer ceases to have the permanent establishment. R.R.O. 1990, Reg. 319, s. 3 (2).

(3) The prescribed manner for a taxpayer or other person delivering a return for a year to attest under subsection 5 (3) of the Act to the veracity of the return is by delivering a certificate with the return that has been signed by,

(a) the taxpayer;

(b) a duly authorized officer of the taxpayer;

(c) the manager or agent of the taxpayer in Ontario, if the taxpayer’s head office is outside Ontario; or

(d) such other person or persons having knowledge to the satisfaction of the Minister of the matters required to be set out in the return. O. Reg. 816/94, s. 3 (2).

Note: Subsection (3) applies to returns delivered after June 23, 1994. See: O. Reg. 816/94, s. 7 (2).

(4) If a trustee in bankruptcy is required under subsection 5 (7) of the Act to deliver a return for a taxpayer, the prescribed date on or before which the trustee is required to deliver the return is the date that is 40 days after the day the taxpayer became a bankrupt. O. Reg. 19/97, s. 1.

4. (1) The Minister may give a rebate to an employer if the employer entered into a fixed price contract before the 18th day of May, 1989 or made an irrevocable offer to enter into a fixed price contract before that date and the offer was accepted. R.R.O. 1990, Reg. 319, s. 4 (1).

(2) Subject to subsection (3), the rebate is equal to the amount of tax paid under the Act on the remuneration paid by the employer. R.R.O. 1990, Reg. 319, s. 4 (2).

(3) If the employer paid premiums under the Health Insurance Act, the rebate shall be reduced by the amount of premiums payable by the employer under that Act, if it had continued in force from the 1st day of January, 1990 until the completion of the fixed price contract. R.R.O. 1990, Reg. 319, s. 4 (3).

(4) No employer shall receive a rebate under this section unless the employer makes an application for a rebate using a form provided by the Ministry. R.R.O. 1990, Reg. 319, s. 4 (4).

(5) The employer shall make the application for a rebate within four years after the end of the year in respect of which the rebate is claimed. R.R.O. 1990, Reg. 319, s. 4 (5).

(6) The employer shall supply any information in support of the application for a rebate that the Minister considers necessary to establish the employer’s eligibility for a rebate. R.R.O. 1990, Reg. 319, s. 4 (6).

(7) No employer shall be paid a rebate under this section until the later of,

(a) the date on which the employer files the annual return for the year in which the tax is to be paid; and

(b) the 15th day of March, 1991. R.R.O. 1990, Reg. 319, s. 4 (7).

(8) For purposes of this section,

“fixed price contract” means a written construction contract or subcontract where the parties agreed to the provision of goods or services, or both, at a predetermined fixed price and whose terms do not allow the employer to recover the tax paid on Ontario remuneration from any other party to the contract. R.R.O. 1990, Reg. 319, s. 4 (8).

(9) In calculating the rebate under this section, the employer shall only include the remuneration paid to those employees who performed the work under the fixed price contract. R.R.O. 1990, Reg. 319, s. 4 (9).

5. An employer is not required to pay tax on the total Ontario remuneration paid to employees who work outside of Canada for the period when the employees do no report for work at a permanent establishment of the employer if,

(a) the employees work outside of Canada for a continuous period of at least 183 days; and

(b) the employer is a registered charity as defined under section 149.1 of the Income Tax Act (Canada). R.R.O. 1990, Reg. 319, s. 5.

6. (1) In this section,

“adjustment date” means January 1, April 1, July 1 or October 1;

“average prime rate”, on a particular date, means the mean, rounded to the nearest whole percentage point, of the annual rates of interest announced by each of the Royal Bank of Canada, The Bank of Nova Scotia, the Canadian Imperial Bank of Commerce, the Bank of Montreal and The Toronto-Dominion Bank to be its prime or reference rate of interest in effect on that date for determining interest rates on Canadian dollar commercial loans by that bank in Canada. O. Reg. 308/97, s. 1.

(2) For the purposes of the Act, the prescribed rates of interest shall be determined in accordance with the following rules:

1. A base rate of interest shall be determined for January 1, 1997 and for each adjustment date after January 1, 1997 and shall be equal to the average prime rate on,

i. October 15 of the previous year, if the adjustment date is January 1,

ii. January 15 of the same year, if the adjustment date is April 1,

iii. April 15 of the same year, if the adjustment date is July 1, and

iv. July 15 of the same year, if the adjustment date is October 1.

2. The base rate of interest in effect on a particular date shall be,

i. the base rate for the particular date, if the particular date is an adjustment date, and

ii. the base rate for the last adjustment date before the particular date, otherwise.

3. The prescribed rate of interest payable by a person under the Act in respect of a particular day shall be an annual interest rate that is three percentage points higher than the base rate of interest in effect on that day.

4. The prescribed rate of interest to be paid or allowed by the Minister to a person under the Act, in respect of a particular day before July 1, 2006, shall be an annual interest rate that is two percentage points lower than the base rate of interest in effect for that day.

4.1 The prescribed rate of interest to be paid or allowed by the Minister to a person under the Act, in respect of a particular day after June 30, 2006, shall be an annual interest rate that is three percentage points lower than the base rate of interest in effect for that day.

5. For interest that is calculated by reference to an excess amount (to be refunded or applied in accordance with the Act) attributable to a decision of the Minister or a court on an objection to, or an appeal from, an assessment for 1998 or a later year, the prescribed rate of interest to be paid or allowed by the Minister in respect of a particular day is the base rate of interest in effect for that day. O. Reg. 308/97, s. 1; O. Reg. 450/99, s. 1; O. Reg. 223/06, s. 1.

7. (1) For the purposes of subsection 2 (2.3) of the Act, the Ontario allocation factor of a self-employed individual for a year is the fraction determined according to the following formula:

where,

F is the Ontario allocation factor of the self-employed individual for the year,

P is the amount by which,

(a) the total self-employment income of the self-employed individual for the year,

exceeds,

(b) the aggregate of the self-employment income of the self-employed individual for the year that is earned or deemed to have been earned in each province other than Ontario and each country other than Canada, and

T is the total self-employment income of the self-employed individual for the year.

O. Reg. 816/94, s. 5.

(2) The self-employment income of a self-employed individual for a year that is earned or deemed to have been earned in a province other than Ontario or in a country other than Canada is determined in accordance with the rules set out in sections 2603, 2604 and 2605 of the Income Tax Regulations (Canada) and, in the application of those sections, references to “income” and to “individual” shall be read as references to “self-employment income” and “self-employed individual”, respectively. O. Reg. 816/94, s. 5.

8. The Workers’ Compensation Board is a prescribed board for the purposes of section 28 of the Act. O. Reg. 816/94, s. 6.