O. Reg. 35/16: EXEMPTIONS FROM TAX UNDER SECTION 3 OF THE ACT

 

ontario regulation 35/16

made under the

Land Transfer Tax Act

Made: February 10, 2016
Filed: February 18, 2016
Published on e-Laws: February 18, 2016
Printed in The Ontario Gazette: March 5, 2016

Amending O. Reg. 70/91

(EXEMPTIONS FROM TAX UNDER SECTION 3 OF THE ACT)

1. Subsection 1 (2) of Ontario Regulation 70/91 is revoked and the following substituted:

(2) Section 3 of the Act does not apply to a disposition of a beneficial interest in land if all of the following circumstances exist:

1. The beneficial interest in land is a partner’s interest in a partnership.

2. The interest in the partnership was acquired by,

i. a person who was a partner in the partnership immediately before the disposition and that person’s entitlement as a partner to a percentage of the profits of the partnership, assuming it had profits to distribute, increased as a result of the disposition, or

ii a person who became a partner in the partnership as a result of the disposition and became entitled as a partner to a percentage of the profits of the partnership, assuming it had profits to distribute, as a result of the disposition.

3. During the fiscal year of the partnership in which the disposition was made, the person’s entitlement to share in profits as a partner in the partnership, assuming it had profits to distribute, does not exceed by more than five per cent the percentage of the profits to which the person would have been entitled as a partner of the partnership at the beginning of the fiscal year.

(3) Subsection (2) does not apply if the partner who acquires the partner’s interest in the partnership is a trust or another partnership.

(4) For the purposes of subsection (2), in respect of a partnership that has filed or was required to file a declaration under the Limited Partnerships Act, a partner means a limited partner or a general partner for the purposes of that Act.

(5) Subsections (2), (3) and (4), as they read immediately after the coming into force of Ontario Regulation 35/16 made under the Act, are deemed to have applied to dispositions of beneficial interests in land on or after July 19, 1989.

(6) Subsection (2), as it read immediately before the coming into force of Ontario Regulation 35/16 made under the Act, is deemed not to have applied to dispositions of beneficial interests in land on or after July 19, 1989.

Commencement

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