O. Reg. 58/06: GENERAL

 

ontario regulation 58/06

made under the

Corporations Tax Act

Made: March 1, 2006
 Filed: March 6, 2006
Published on e-Laws: March 7, 2006
Printed in The Ontario Gazette: March 25, 2006

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

(General)

1. (1) Subsection 905 (1) of Regulation 183 of the Revised Regulations of Ontario, 1990 is amended by adding the following definition:

“master recording” means, in respect of a sound recording, the initial sound recording that is created and fully completed and from which all copies of the sound recording are made;

(2) The definition of “sound recording” in subsection 905 (1) of the Regulation is revoked and the following substituted:

“sound recording” means a recording of music, with or without lyrics, that is produced by analogue, digital or similar technology and that is,

(a) on a vinyl record, compact disc, digital versatile disc or audio tape, if the recording is made before May 12, 2005, or

(b) on a vinyl record, compact disc, digital versatile disc, audio tape or any other fixed medium from which a recording is capable of being played, if the recording is made after May 11, 2005.

(3) Paragraph 2 of subsection 905 (3) of the Regulation is revoked and the following substituted:

2. The corporation has carried on its sound recording business,

i. throughout the period of 24 months that ends immediately before the beginning of the taxation year, if the taxation year ends before May 12, 2005, or

ii. throughout the period of 12 months that ends immediately before the beginning of the taxation year, if the taxation year ends after May 11, 2005.

(4) Subclauses 905 (3.1) (a) (i) and (ii) of the Regulation are revoked and the following substituted:

(i) if one of the predecessor corporations has carried on its sound recording business,

(A) throughout the period of 24 months that ends immediately before the beginning of the taxation year, if the taxation year ends before May 12, 2005, or

(B) throughout the period of 12 months that ends immediately before the beginning of the taxation year, if the taxation year ends after May 11, 2005, or

(ii) if the new corporation plus one of the predecessor corporations have, in total, carried on a sound recording business,

(A) throughout the period of 24 months that ends immediately before the beginning of the taxation year, if the taxation year ends before May 12, 2005, or

(B) throughout the period of 12 months that ends immediately before the beginning of the taxation year, if the taxation year ends after May 11, 2005.

(5) Subclauses 905 (3.2) (a) (i) and (ii) of the Regulation are revoked and the following substituted:

(i) if the subsidiary controlled corporation has carried on its sound recording business,

(A) throughout the period of 24 months that ends immediately before the beginning of the taxation year, if the taxation year ends before May 12, 2005, or

(B) throughout the period of 12 months that ends immediately before the beginning of the taxation year, if the taxation year ends after May 11, 2005, or

(ii) if the parent corporation and the subsidiary controlled corporation have, in total, carried on a sound recording business,

(A) throughout the period of 24 months that ends immediately before the beginning of the taxation year, if the taxation year ends before May 12, 2005, or

(B) throughout the period of 12 months that ends immediately before the beginning of the taxation year, if the taxation year ends after May 11, 2005.

(6) Paragraph 6 of subsection 905 (5) of the Regulation is amended by striking out “subsection (7)” and substituting “subsection (7) or (7.1), whichever applies,”.

(7) Paragraph 2 of subsection 905 (6) of the Regulation is revoked and the following substituted:

2. The total playing time of the recording is,

i. less than 40 minutes, if the master recording in respect of the recording is completed before May 12, 2005, or

ii. less than 15 minutes, if the master recording in respect of the recording is completed after May 11, 2005.

(8) Subsection 905 (7) of the Regulation is amended by striking out the portion before paragraph 1 and substituting the following:

(7) For the purposes of paragraph 6 of subsection (5), an eligible sound recording company that claims a tax credit under section 43.12 of the Act in respect of a sound recording must meet the following conditions with respect to the distribution of the sound recording if the master recording for the sound recording is completed before May 12, 2005:

. . . . .

(9) Paragraph 1 of subsection 905 (7) of the Regulation is amended by striking out “Minister of Citizenship, Culture and Recreation” and substituting “Minister of Culture”.

(10) Section 905 of the Regulation is amended by adding the following subsection:

(7.1) For the purposes of paragraph 6 of subsection (5), if the master recording for a sound recording is completed after May 11, 2005, the eligible sound recording company that claims a tax credit under section 43.12 of the Act in respect of the sound recording must have a plan for the distribution of the recording that a person designated by the Minister of Culture considers to be appropriate for the commercial exploitation of the recording.