O. Reg. 398/96: INTEREST ON TAX REFUNDS

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Land Transfer Tax Act

ONTARIO REGULATION 398/96

INTEREST ON TAX REFUNDS

Consolidation Period: From April 23, 2018 to the e-Laws currency date.

Last amendment: 308/18.

Legislative History: 310/97, 308/18.

This is the English version of a bilingual regulation.

1. If the Minister makes a refund under section 8 of the Act or under a regulation made under the Act, or makes a rebate of tax under subsection 18 (2) of the Act, interest shall be paid or applied on the amount of the refund or rebate, calculated at the prescribed rate, for the period from the date on which the amount that is refunded or rebated was paid to the Minister to the earlier of,

(a) the day the refund or rebate is made; and

(b) June 30, 1993.  O. Reg. 398/96, s. 1.

2. (1) If, as a result of an objection made under section 13 of the Act or an appeal under section 14, the Minister makes a refund or rebate, interest shall be paid or applied on the amount of the refund or rebate, calculated at the prescribed rate, for the period from the interest adjustment date set out in subsection (2) to the earlier of,

(a) the day the refund is made; or

(b) June 30, 1993.  O. Reg. 398/96, s. 2 (1).

(2) For the purposes of subsection (1),

(a) the interest adjustment date for a tax refund under section 9 of the Act is the day that is the later of the day the Minister issued a notice of disallowance of the refund under subsection 8 (7) of the Act and the first day on which the applicant for the refund can prove that he or she qualified for the refund; and

(b) the interest adjustment date in all other cases is the date on which the amount that is refunded or rebated was paid to the Minister.  O. Reg. 398/96, s. 2 (2).

(3) No interest is payable under the Act on an amount that is refunded or rebated to a person with respect to the period from the date the person paid the amount until the interest adjustment date.  O. Reg. 398/96, s. 2 (3).

3. (1) Subject to section 3.1, if, on a particular date after June 30, 1993, an overpayment is payable to a person, interest shall be paid or applied on the amount of the overpayment calculated at the prescribed rate and compounded daily from the day that is the later of July 1, 1993 and the day on which the overpayment arose to the date on which the overpayment is paid or applied under subsection 8 (8) of the Act.  O. Reg. 398/96, s. 3 (1); O. Reg. 308/18, s. 1 (1).

(2) For the purposes of subsection (1), the amount of an overpayment payable to a person on a particular date is the amount by which,

(a) the total of all amounts paid by the person to the Minister under the Act before that date,

exceeds,

(b) the total of all amounts payable under the Act by the person before that date and all amounts refunded, rebated or paid to the person under the Act or the regulations made under the Act, or applied by the Minister under subsection 8 (8) of the Act.  O. Reg. 398/96, s. 3 (2).

(3) Subsection (1) applies if, by a decision of the Minister under section 13 of the Act or by a decision of a court, it is finally determined that tax payable under subsection 2 (2.1) of the Act is less than the amount assessed under section 12 of the Act and there has been an overpayment of tax. O. Reg. 308/18, s. 1 (2).

3.1 (1) If an amount of tax paid under subsection 2 (2.1) of the Act is refunded or applied under subsection 8 (8) of the Act, interest calculated at the rate determined in accordance with section 10 of Ontario Regulation 182/17 (Tax Payable under Subsection 2 (2.1) of the Act by Foreign Entities and Taxable Trustees) and compounded daily, shall be paid or applied to the amount that is refunded or applied from the fortieth business day following the date the application for the refund was made to the date the amount is refunded or applied. O. Reg. 308/18, s. 2.

(2) No interest is payable on an amount described in subsection (1) with respect to the period from the date the person paid the amount until the fortieth business day following the date the application for the refund was made. O. Reg. 308/18, s. 2.

(3) For greater certainty, in this section and in section 3, a reference to tax paid or payable under subsection 2 (2.1) of the Act includes an amount that was paid or payable under subsection 3 (2) of the Act that was determined in accordance with subsection 2 (2.1) of the Act. O. Reg. 308/18, s. 2.

(4) In this section,

“business day” means a day from Monday to Friday, other than a holiday as described in section 3.2. O. Reg. 308/18, s. 2.

3.2 (1) This section applies for the purposes of the definition of “business day” in section 3.1. O. Reg. 308/18, s. 2.

(2) The following days are holidays:

1. New Year’s Day.

2. Family Day.

3. Good Friday.

4. Easter Monday.

5. Victoria Day.

6. Canada Day.

7. Civic Holiday.

8. Labour Day.

9. Thanksgiving Day.

10. Remembrance Day.

11. Christmas Day.

12. Boxing Day.

13. Any special holiday proclaimed by the Governor General or the Lieutenant Governor. O. Reg. 308/18, s. 2.

(3) If New Year’s Day, Canada Day or Remembrance Day falls on a Saturday or a Sunday, the following Monday is a holiday. O. Reg. 308/18, s. 2.

(4) If Christmas Day falls on a Saturday or a Sunday, the following Monday and Tuesday are holidays. O. Reg. 308/18, s. 2.

(5) If Christmas Day falls on a Friday, the following Monday is a holiday. O. Reg. 308/18, s. 2.

4. (1) Revoked:  O. Reg. 310/97, s. 2.

(2) Interest shall not be paid or applied under this Regulation with respect to a refund, rebate or overpayment where the amount of the interest would be less than $1.  O. Reg. 398/96, s. 4 (2).

5. Omitted (provides for coming into force of provisions of this Regulation).  O. Reg. 398/96, s. 5.

 

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