O. Reg. 123/02: PAYMENTS IN LIEU OF CORPORATE TAXES - MUNICIPAL ELECTRICITY UTILITIES
filed March 28, 2002 under Electricity Act, 1998, S.O. 1998, c. 15, Sched. ASkip to content
ontario regulation 123/02
made under the
electricity act, 1998
Made: March 22, 2002
Filed: March 28, 2002
Printed in The Ontario Gazette: April 13, 2002
Amending O. Reg. 162/01
(Payments in Lieu of Corporate Taxes —
Municipal Electricity Utilities)
1. Paragraph 2 of section 12 of Ontario Regulation 162/01 is revoked and the following substituted:
2. The taxation year of the utility shall be deemed to end immediately before the time that the corporation ceases to be exempt from the payment of tax under the Federal Act and the Corporations Tax Act.
3. Subject to paragraphs 4 and 5, the utility shall pay the amount determined under section 93 of the Act calculated by reference to the deemed disposition under paragraph 149 (10) (b) of the Federal Act.
4. The utility is not required to pay an amount under paragraph 3 in respect of a deemed disposition of shares of a subsidiary corporation,
i. if the utility owns at least 90 per cent of the issued and outstanding shares of the subsidiary corporation, and
ii. if the subsidiary corporation is required to pay the amount determined under section 93 of the Act calculated by reference to the deemed disposition under paragraph 149 (10) (b) of the Federal Act.
5. The utility is not required to pay the amount described in paragraph 3 if both of the following conditions are satisfied:
i. The utility ceases to be exempt from the payment of tax under the Federal Act and the Corporations Tax Act as a result of a lawful distribution to the public of shares of the utility or a related corporation pursuant to a prospectus, registration statement or similar document filed with and, if required by law, accepted for filing by a public authority in Canada under the laws of Canada or of a province. The distribution must be the first distribution to the public of shares of the utility or related corporation.
ii. With the consent of the Minister, the utility pays to the Financial Corporation an amount that, in the Minister’s opinion, reasonably approximates the additional amounts, if any, that would be payable by the utility under section 93 of the Act if the utility were required, but for this paragraph, to pay the amount described in paragraph 3.
6. An amount paid to the Financial Corporation under paragraph 3 cannot be varied on objection or appeal under the Corporations Tax Act.
7. The Minister is not permitted, on a reassessment, to vary an amount paid to the Financial Corporation under paragraph 3 unless, in the Minister’s opinion, the utility, a related corporation or a person acting on behalf of the utility or related corporation makes a misrepresentation to the Minister that is attributable to neglect, carelessness or wilful default or commits a fraud in giving information under the Act in respect of the determination of the amount paid to the Financial Corporation under that paragraph.
James M. Flaherty
Minister of Finance
Dated on March 22, 2002.