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O. Reg. 71/91: EXEMPTION - DISPOSITION OF LAND BY EMPLOYEE TO EMPLOYER

under Land Transfer Tax Act, R.S.O. 1990, c. L.6

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Land Transfer Tax Act
Loi sur les droits de cession immobilière

ONTARIO REGULATION 71/91

EXEMPTION — DISPOSITION OF LAND BY EMPLOYEE TO EMPLOYER

Consolidation Period: From June 13, 2005 to the e-Laws currency date.

Last amendment: O.Reg. 318/05.

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 from an employee or an employee’s spouse or both to an employer if the following requirements are met:

1. The disposition is not evidenced by a registered conveyance.

2. The employee or the employee’s spouse or both held both the beneficial ownership and registered title to the land immediately before the disposition.

3. The disposition is made under the terms of an employee relocation plan offered by the employer to the employee as part of the employment package.

4. The employee or his or her spouse or both disposed of the land because the employee commenced working for the employer or was relocated by the employer to a new work location.

5. The land has situated on it only a single family residence and the employee ordinarily resided in that residence until the employee moved to the new work location.

6. The employee’s new residence is at least 40 kilometres closer to the new work location than the land disposed of by the employee, his or her spouse or both.

7. The employer paid any profit from the sale of the land to the employee, the employee’s spouse or both.

8. The employer disposes of the beneficial interest in the land or conveys the land to a person not associated with the employer and tax is paid on that disposition or conveyance, all within 180 days of the disposition from the employee or the employee’s spouse or both to the employer. O. Reg. 71/91, s. 1 (1); O. Reg. 120/00, s. 1; O. Reg. 318/05, s. 1 (1-6).

(2) An employer who meets all of the requirements in subsection (1) except those of paragraph 8 may delay filing a return under section 5 of the Act and paying tax and any interest for up to thirty days after the time period set out in that paragraph. O. Reg. 71/91, s. 1 (2).

(3) In this section,

“employee relocation plan” means a plan that is offered by an employer to assist new or transferred employees of the employer in relocating to a new work location and that includes provisions that require the employer,

(a) to purchase the land of the employee, his or her spouse, or both at an appraised fair market value if the land is not sold within a specified time period after the employee commences to work for the new employer or is advised of the relocation, and

(b) upon the conveyance or disposition of the land, to pay the profits from such conveyance or disposition to the employee, his or her spouse, or both;

“employer” includes a person administering an employee relocation plan on behalf of the employer;

“profits” means the proceeds of the sale of the land less all amounts paid to the employee, his or her spouse, or both under the employee relocation plan with respect to the land, plus any expenses incurred by the employer in maintaining or selling the land during the time the employer held beneficial ownership in it. O. Reg. 71/91, s. 1 (3); O. Reg. 120/00, s. 1; O. Reg. 318/05, s. 1 (7-9).

2. Omitted (provides for coming into force of provisions of this Regulation). O.  Reg. 71/91, s. 2.