O. Reg. 112/21: GENERAL

 

ontario regulation 112/21

made under the

Taxation Act, 2007

Made: February 11, 2021
Filed: February 12, 2021
Published on e-Laws: February 12, 2021
Printed in The Ontario Gazette: February 27, 2021

Amending O. Reg. 37/09

(GENERAL)

1. Ontario Regulation 37/09 is amended by adding the following section:

Special rules re certain productions

30.1 (1) This section applies in respect of a film or television production for the purposes of section 91 of the Act if both of the following circumstances exist:

1. A qualifying production company incurred an Ontario labour expenditure in respect of the production on or before March 15, 2020.

2. An application for a certificate of completion in respect of the production had not been filed with the Ontario Media Development Corporation or another person designated by the Minister of Culture on or before March 15, 2020.

(2) An application for a certificate of completion has been filed for the purposes of paragraph 2 of subsection (1) even if the application was withdrawn before the Ontario Media Development Corporation or another person designated by the Minister of Culture issued a certificate of completion in respect of the production or a letter notifying the qualifying production company that the production does not qualify for certification.

(3) The reference to “two-year period” in clause 27 (2) (d) shall be read as “four-year period.”

(4) The reference to “24 months” in clause (a) of the definition of “application deadline” in subsection 27 (4) shall be read as “48 months” and the reference to “first and second taxation years” in subclause (b) (i) of that definition shall be read as “first, second, third and fourth taxation years” if,

(a) the qualifying production company has filed with the Ontario Minister a waiver described in subparagraph 152 (4) (a) (ii) of the Federal Act within the company’s normal reassessment period for its first and second taxation years ending after the production’s principal photography began; and

(b) a copy of the waiver is provided to the Ontario Media Development Corporation or such other person as may be designated by the Minister of Culture.

(5) The reference to “two years” in subclause (b) (iii) of the definition of “production commencement time” in subsection 30 (3) shall be read as “four years” if,

(a) principal photography for the production commenced after March 15, 2020;

(b) the qualifying production company has filed with the Ontario Minister a waiver described in subparagraph 152 (4) (a) (ii) of the Federal Act within the company’s normal reassessment period for taxation years in which the company has claimed an Ontario film and television tax credit for the production that end before the year in which principal photography for the production began; and

(c) a copy of the waiver is provided to the Ontario Media Development Corporation or such other person as may be designated by the Minister of Culture.

2. The Regulation is amended by adding the following section:

Special rules re certain productions

33.1 (1) This section applies in respect of a film or television production for the purposes of section 92 of the Act if a qualifying corporation incurred an expenditure in respect of the production in a taxation year ending in 2020 or 2021 and the expenditure would otherwise have been an eligible wage expenditure, an eligible service contract expenditure or an eligible tangible property expenditure if principal photography for the production had commenced in the year the expenditure was incurred.

(2) If principal photography for the production commences on or after March 15, 2020, the condition set out in paragraph 1 of section 31 is not required to be satisfied in the last two taxation years ending before the taxation year in which the principal photography commenced.

(3) The references to “24 months” in paragraphs 2 and 3 of section 31 shall be read as “48 months” if,

(a) the qualifying corporation has filed with the Ontario Minister a waiver described in subparagraph 152 (4) (a) (ii) of the Federal Act within the company’s normal reassessment period for the taxation year in which the production’s principal photography began; and

(b) a copy of the waiver is provided to the Ontario Media Development Corporation or such other person as may be designated by the Minister of Culture.

3. (1) Paragraph 1 of subsection 34 (9) of the Regulation is revoked and the following substituted:

1. The expenditure is incurred during the time period set out in subsection 93 (4) of the Act that is applicable to the product.

(2) Paragraph 1 of subsection 34 (10) of the Regulation is revoked and the following substituted:

1. The expenditure is incurred during the time period set out in subsection 93 (4) of the Act that is applicable to the product.

(3) Paragraph 1 of subsection 34 (11) of the Regulation is revoked and the following substituted:

1. The expenditure is incurred during the time period set out in subsection 93 (4) of the Act that is applicable to the product.

Commencement

4. This Regulation comes into force on the day it is filed.