O. Reg. 160/01: GENERAL

 

ONTARIO regulation 160/01

made under the

corporations tax act

Made:  May 9, 2001
Filed:  May 11, 2001
Printed in The Ontario Gazette: May 26, 2001

Amending Reg. 183 of R.R.O. 1990

(General)

1. (1) Paragraphs 13 and 14 of subsection 703 (2) of Regulation 183 of the Revised Regulations of Ontario, 1990 are revoked and the following substituted:

13. Norwest Financial Capital Canada, Inc., for taxation years ending after May 7, 1997 and before January 1, 1999.

14. Norwest Financial Canada, Inc., for taxation years ending after May 7, 1997 and before January 1, 1999.

(2) Subsection 703 (2) of the Regulation is amended by adding the following paragraphs:

25. Norwest Financial Canada Company, for taxation years ending after 1998.

26. National Retail Credit Services Company, for taxation years ending after 1998.

27. PACCAR Financial Limited, for taxation years ending on or after December 31, 2000.

28. AmeriCredit Financial Services of Canada Limited, for taxation years ending on or after June 30, 2001.

2. Paragraph 13 of section 902 of the Regulation is revoked.

3. (1) Section 906 of the Regulation is amended by adding the following subsection:

(8.1) If an expenditure is not included in the qualifying wage amount or qualifying remuneration amount of the qualifying corporation for a taxation year because of paragraph 3 of subsection (8), the expenditure may be included in the qualifying wage amount or qualifying remuneration amount of the qualifying corporation for a subsequent taxation year if the expenditure is paid no later than 60 days after the end of that subsequent taxation year.

(2) Section 906 of the Regulation is amended by adding the following subsections:

(10) For the purposes of the definition of “marketing and distribution expenditure” in subsection 43.11 (15) of the Act and subject to subsection (11), the marketing and distribution expenditure incurred by a qualifying corporation in a taxation year in respect of an eligible product is the amount of any expenditure incurred by the qualifying corporation in the taxation year that meets all the following conditions:

1. The expenditure is directly attributable to advertising or promoting the eligible product or distributing the eligible product to customers or potential customers.

2. The expenditure is incurred after May 2, 2000.

3. The expenditure is paid no later than 60 days after the end of the taxation year.

4. The expenditure is not an amount,

i. for which the qualifying corporation makes a claim under section 43.5, 43.8 or 43.10 of the Act, or

ii.  incurred by the corporation in carrying out activities that constitute scientific research and experimental development for the purposes of paragraph 37 (1) (a) of the Income Tax Act (Canada) or subparagraph 37 (1) (b) (i) of that Act.

5. If the qualifying corporation sells the eligible product directly to a consumer of the eligible product, the expenditure is not directly related to processing an order by a consumer or shipping an eligible product to a consumer.

6. If the expenditure relates to an amount paid or payable for meals or entertainment, only 50 per cent of the amount is included in the marketing and distribution expenditure incurred by a qualifying corporation in a taxation year.

(11) If an expenditure is not included in the marketing and distribution expenditure incurred by a qualifying corporation in a taxation year because of paragraph 3 of subsection (10), the expenditure may be included in the marketing and distribution expenditure incurred by the corporation in a subsequent taxation year if the expenditure is paid no later than 60 days after the end of that subsequent taxation year.

4. Section 1201 of the Regulation is amended by adding the following subsection:

(6.1) Despite paragraph 1 of subsection (6), an expenditure that is excluded from the qualifying wage amount or qualifying remuneration amount of the qualifying corporation for a taxation year because it was not paid within 60 days after the end of the taxation year may be included in the corporation’s qualifying wage amount or qualifying remuneration amount for a subsequent taxation year if it is paid within 60 days after the end of that subsequent taxation year.

5. (1) Section 1 shall be deemed to have come into force on January 1, 1999.

(2) Section 2 and subsection 3 (2) shall be deemed to have come into force on May 3, 2000.

(3) Subsection 3 (1) shall be deemed to have come into force on July 1, 1998.

(4) Section 4 shall be deemed to have come into force on May 5, 1999.