O. Reg. 150/08: GENERAL

 

ontario regulation 150/08

made under the

Corporations TAx Act

Made: May 14, 2008
Filed: May 16, 2008
Published on e-Laws: May 21, 2008
Printed in The Ontario Gazette: May 31, 2008

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

(General)

1. (1) Paragraphs 12 and 12.1 of subsection 703 (2) of Regulation 183 of the Revised Regulations of Ontario, 1990 are revoked and the following substituted:

12. Trans Canada Credit Corporation, for taxation years ending before January 1, 2005.

12.1 Trans Canada Retail Services Company, for taxation years ending after January 14, 2002 and before January 18, 2005.

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

30.0.1 Wells Fargo Financial Corporation Canada, for taxation years ending after December 31, 2004.

30.0.2 Wells Fargo Financial Retail Services Company, for taxation years ending after January 17, 2005.

2. (1) Subsections 1201 (4) and (5) of the Regulation are revoked and the following substituted:

(4) Subject to subsection (6), the qualifying wage amount of the qualifying corporation for a taxation year with respect to the eligible production is the sum of,

(a) the amount incurred by it during the taxation year and after June 30, 1997 on account of salaries or wages that are directly attributable to eligible computer animation and special effects activities carried out by the qualifying corporation in Ontario for the eligible production; and

(b) if principal photography for the eligible production commenced after March 22, 2007, the amount, if any, determined under subsection (5.2) in respect of the qualifying corporation and the eligible production for the taxation year.

(5) Subject to subsection (6), the qualifying remuneration amount of the qualifying corporation for a taxation year with respect to the eligible production is the sum of,

(a) the amount determined under subsection (5.1); and

(b) if principal photography for the eligible production commenced after March 22, 2007, the amount, if any, determined under subsection (5.2) in respect of the qualifying corporation and the eligible production for the taxation year.

(5.1) The amount determined under this subsection is the amount incurred during the taxation year and after May 4, 1999 that is directly attributable to eligible computer animation and special effects activities undertaken for the eligible production on behalf of the qualifying corporation, which is paid to any of the following persons or entities in the circumstances that are described:

1. An individual who is not an employee of the corporation and who deals at arm’s length with the qualifying corporation, if the expenditure is attributable to activities personally undertaken by the individual.

2. An individual described in paragraph 1 for activities undertaken by the individual’s employees, if the expenditure does not exceed the salaries and wages of those employees for personally undertaking those activities.

3. An eligible partnership described in subsection (7),

i. for activities personally undertaken by a member of the eligible partnership, or

ii. for activities personally undertaken by employees of the eligible partnership, if the expenditure does not exceed the salaries and wages of those employees for personally undertaking those activities.

(5.2) The amount determined under this subsection in respect of the eligible production and the qualifying corporation for a taxation year is the amount of the reimbursement made by the qualifying corporation to another taxable Canadian corporation (in this subsection referred to as the “parent”) of an expenditure that was previously incurred by the parent in respect of the eligible production if all of the following conditions are met:

1. The qualifying corporation is a wholly-owned subsidiary of the parent.

2. The qualifying corporation and the parent have filed with the Minister an agreement that this subsection applies in respect of the eligible production.

3. The reimbursement is made by the qualifying corporation in the taxation year or within 60 days after the end of the taxation year.

4. If the amount is being determined for the purposes of clause (4) (b), the expenditure was incurred in a particular taxation year of the parent and would have been included in the qualifying wage amount of the qualifying corporation in respect of the eligible production for the particular taxation year because of clause (4) (a),

i. if the qualifying corporation had had that particular taxation year, and

ii. if the expenditure had been incurred by the qualifying corporation for the same purpose as it was incurred by the parent and had been paid at the same time and to the same person or partnership as it was by the parent.

5. If the amount is being determined for the purpose of clause (5) (b), the expenditure was incurred in a particular taxation year of the parent and would have been included in the qualifying remuneration amount of the qualifying corporation in respect of the eligible production for the particular taxation year because of clause (5) (a),

i. if the qualifying corporation had had that particular taxation year, and

ii. if the expenditure had been incurred by the qualifying corporation for the same purpose as it was incurred by the parent and had been paid at the same time and to the same person or partnership as it was by the parent.

(2) Subsection 1201 (6) of the Regulation is amended by adding the following paragraph:

5. The expenditure is not the subject of an agreement in respect of the eligible production referred to in paragraph 2 of subsection (5.2) between the qualifying corporation and a wholly-owned subsidiary of the qualifying corporation.

3. (1) Subject to subsections (2) and (3), this Regulation comes into force on the day it is filed.

(2) Section 1 is deemed to have come into force on January 1, 2005.

(3) Section 2 is deemed to have come into force on March 22, 2007.