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Land Transfer Tax Act
Loi sur les droits de cession immobilière

ONTARIO REGULATION 70/91

EXEMPTIONS FROM TAX UNDER SECTION 3 OF THE ACT

Consolidation Period: From February 18, 2016 to the e-Laws currency date.

Last amendment: O. Reg. 35/16.

This Regulation is made in English only.

1. (1) Section 3 of the Act does not apply to a disposition of a beneficial interest in land,

(a) if the disposition is of one or more units in a class of units described in paragraphs 4801 (a) and (b) of chapter 945 of the Consolidated Regulations of Canada, 1978 (the Income Tax Regulations); and

(b) if the beneficial interest is an interest in a mutual fund trust within the meaning of subsection 132 (6) of the Income Tax Act (Canada).  O. Reg. 70/91, s. 1 (1).

(2) Section 3 of the Act does not apply to a disposition of a beneficial interest in land if all of the following circumstances exist:

1. The beneficial interest in land is a partner’s interest in a partnership.

2. The interest in the partnership was acquired by,

i. a person who was a partner in the partnership immediately before the disposition and that person’s entitlement as a partner to a percentage of the profits of the partnership, assuming it had profits to distribute, increased as a result of the disposition, or

ii a person who became a partner in the partnership as a result of the disposition and became entitled as a partner to a percentage of the profits of the partnership, assuming it had profits to distribute, as a result of the disposition.

3. During the fiscal year of the partnership in which the disposition was made, the person’s entitlement to share in profits as a partner in the partnership, assuming it had profits to distribute, does not exceed by more than five per cent the percentage of the profits to which the person would have been entitled as a partner of the partnership at the beginning of the fiscal year. O. Reg. 35/16, s. 1.

(3) Subsection (2) does not apply if the partner who acquires the partner’s interest in the partnership is a trust or another partnership. O. Reg. 35/16, s. 1.

(4) For the purposes of subsection (2), in respect of a partnership that has filed or was required to file a declaration under the Limited Partnerships Act, a partner means a limited partner or a general partner for the purposes of that Act. O. Reg. 35/16, s. 1.

(5) Subsections (2), (3) and (4), as they read immediately after the coming into force of Ontario Regulation 35/16 made under the Act, are deemed to have applied to dispositions of beneficial interests in land on or after July 19, 1989. O. Reg. 35/16, s. 1.

(6) Subsection (2), as it read immediately before the coming into force of Ontario Regulation 35/16 made under the Act, is deemed not to have applied to dispositions of beneficial interests in land on or after July 19, 1989. O. Reg. 35/16, s. 1.

2. (1) Section 3 of the Act does not apply to a disposition of a beneficial interest in land if the corporation acquiring the beneficial interest provides confirmation to the satisfaction of the Minister that the requirements described in this section are met.  O. Reg. 70/91, s. 2 (1).

(2) The disposition must occur as part of a reorganization in the course of which a dividend is received by a corporation.  O. Reg. 70/91, s. 2 (2).

(3) The amount of the dividend would be deemed under subsection 55 (2) of the Income Tax Act (Canada), but for the application of paragraph 55 (3) (b) of that Act, not to be a dividend received by the corporation, but to be proceeds of disposition of a share or shares or to be a gain of the corporation from the disposition of a capital property.  O. Reg. 70/91, s. 2 (3).

(4) The disposition of the beneficial interest in land must constitute a transfer of property of a particular corporation to one or more corporations for the purposes of the application of paragraph 55 (3) (b) of the Income Tax Act (Canada) in respect of the dividend referred to in subsection (2).  O. Reg. 70/91, s. 2 (4).

3. (1) A disposition of a beneficial interest in land is exempt from tax imposed by virtue of section 3 of the Act,

(a) if the disposition is made to or in trust for a pipe line company and if any person who tendered for registration a conveyance evidencing the disposition would be exempt from tax by reason of section 2 of Regulation 695 of the Revised Regulations of Ontario, 1990;

(b) if the disposition is made to the spouse or former spouse, child or dependant of the person making the disposition and if any person who tendered for registration a conveyance evidencing the disposition would be exempt from tax by reason of section 1 or 2 of Regulation 696 of the Revised Regulations of Ontario, 1990;

(c) if the disposition is made to a member of the family of the person making the disposition and if all requirements and conditions imposed by Regulation 697 of the Revised Regulations of Ontario, 1990 (Exemption(s) — For Certain Conveyances of Family Farms or Family Businesses) made under the Act, have been met which would entitle a person under section 2 or 2.1 of that regulation to register a conveyance evidencing the disposition without payment of tax or to receive a refund of tax paid on such a registration;

(c.1) if the disposition is made to one or more individuals, each of whom is a member of the family of each of the others, and if all the requirements and conditions imposed by Regulation 697 of the Revised Regulations of Ontario, 1990 made under the Act, have been met which would entitle an individual under section 2.2 of that regulation to register a conveyance evidencing the disposition without payment of tax or to receive a refund of tax paid on such a registration;

(c.2) if the disposition is made to a family business corporation as defined in Regulation 697 of the Revised Regulations of Ontario, 1990 made under the Act, and all requirements and conditions imposed by that regulation have been met which would entitle a person under section 3 of that regulation to register a conveyance evidencing the disposition without payment of tax or to receive a refund of tax paid on such a registration; or

(d) if the disposition is of a surface rights option, mineral rights to land, or both, and if any person who tendered for registration a conveyance evidencing the disposition would be exempt from tax by reason of section 2 of Regulation 703 of the Revised Regulations of Ontario, 1990.  O. Reg. 70/91, s. 3; O. Reg. 119/00, s. 1; O. Reg. 86/04, s. 1 (1); O. Reg. 317/05, s. 1 (1, 2); O. Reg. 351/08, s. 1 (1).

(2) In this section,

“member of the family” means a person who is a member of the family for the purposes of Regulation 697 of the Revised Regulations of Ontario, 1990 made under the Act.  O. Reg. 351/08, s. 1 (2).

4. Omitted (provides for coming into force of provisions of this Regulation).  O. Reg. 70/91, s. 4.