[38] Bill 149 Royal Assent (PDF)

Bill 149 2004

An Act to implement
2004 Budget measures, enact the
Northern Ontario Grow Bonds
Corporation Act, 2004
and amend various Acts

Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:

Contents of this Act

1.  This Act consists of this section, sections 2 and 3 and the Schedules to this Act.

Commencement

2.  (1)  Subject to subsections (2) and (3), this Act comes into force on the day it receives Royal Assent.

Same

(2)  The Schedules to this Act come into force as provided in each Schedule.

Same

(3)  If a Schedule to this Act provides that any provisions are to come into force on a day to be named by proclamation of the Lieutenant Governor, a proclamation may apply to one or more of those provisions, and proclamations may be issued at different times with respect to any of those provisions.

Short title

3.  The short title of this Act is the Budget Measures Act (Fall), 2004.

SCHEDULE 1
AMENDMENTS TO THE ADMINISTRATION OF JUSTICE ACT

1.  Section 1 of the Administration of Justice Act is amended by adding the following definitions:

"fee" means a fee whose payment is required by a regulation made under this Act; ("frais")

"Ministry" means the Ministry of the Attorney General. ("ministère")

2.  The Act is amended by adding the following sections:

Purpose

4.1  The purpose of sections 4.2 to 4.9 is to provide a mechanism for fee waivers, so that individuals who might otherwise be denied access to justice because of their financial circumstances can be excused from paying fees.

Effect of certificate

4.2  The person named in a certificate given under section 4.3, 4.4, 4.5, 4.6 or 4.7 is excused from paying any fees that,

(a) would be payable on or after the date of the certificate; and

(b) relate to the court proceeding or tribunal order described in the certificate.

Fee waiver re court proceeding: clerk or registrar

Request

4.3  (1)  A person may request a fee waiver under this section with respect to a court proceeding by giving a written request, in the form provided by the Ministry, to the clerk or registrar of the court in which the proceeding is or would be commenced.

Timing

(2)  The request may be made at any stage in the proceeding.

Same

(3)  Without limiting the generality of subsection (2), a person who has not previously obtained a fee waiver may request one after an order is made in the proceeding, in order to be excused from paying any fees relating to the enforcement of the order.

Certificate

(4)  If the clerk or registrar determines that the person meets the prescribed conditions, he or she shall give the person a certificate indicating that all fees that are or would be payable by the person on or after the date of the certificate with respect to the proceeding, including any fees relating to the enforcement of an order in the proceeding, are waived.

Decision final

(5)  The decision of the clerk or registrar is final.

Fee waiver re court proceeding: judge, etc.

Request

4.4  (1)  A person may request a fee waiver under this section with respect to a court proceeding by giving a written request, in the form provided by the Ministry, to a judge, deputy judge or case management master of the court in which the proceeding is or would be commenced.

Timing

(2)  The request may be made at any stage in the proceeding.

Same

(3)  Without limiting the generality of subsection (2), a person who has not previously obtained a fee waiver may request one after an order is made in the proceeding, in order to be excused from paying any fees relating to the enforcement of the order.

Role of clerk or registrar

(4)  The clerk or registrar of the court shall consider the request before it is considered by the judge, deputy judge or case management master, and if he or she determines that the person meets the prescribed conditions referred to in subsection 4.3 (4),

(a) the clerk or registrar shall deal with the request as if it had been made under section 4.3 rather than under this section; and

(b) subsections (5) to (9) do not apply.

Order re certificate

(5)  If the judge, deputy judge or case management master is of the opinion that the person meets the conditions set out in subsection (7), he or she shall make an order directing the clerk or registrar to give the person a certificate indicating that all fees that are or would be payable by the person with respect to the proceeding on or after the date of the certificate, including any fees relating to the enforcement of an order in the proceeding, are waived.

Date of certificate

(6)  The date of the certificate shall be the date on which the order is made under subsection (5).

Conditions

(7)  The conditions referred to in subsection (5) are:

1. The person lacks the financial means to pay fees relating to the proceeding or to the enforcement of an order made in the proceeding, as the case may be.

2. Commencing, defending, continuing or intervening in the proceeding, as the case may be, is not frivolous, vexatious or otherwise an abuse of the process of the court.

Exception

(8)  The condition set out in paragraph 2 of subsection (7) does not need to be satisfied in the case of a request described in subsection (3).

Decision final

(9)  The decision of the judge, deputy judge or case management master is final.

Fee waiver re enforcement of court order: sheriff

Request

4.5  (1)  A person who is entitled to have a court order enforced by a sheriff on payment of a fee may request a fee waiver under this section by giving the sheriff a written request, in the form provided by the Ministry.

Certificate

(2)  If the sheriff determines that the person meets the prescribed conditions, he or she shall give the person a certificate indicating that all fees relating to the enforcement of the order that are or would be payable by the person on or after the date of the certificate are waived.

Decision final

(3)  The sheriff's decision is final.

Bailiff

(4)  In this section, references to a sheriff include a bailiff.

Fee waiver re enforcement of tribunal order: sheriff

Request

4.6  (1)  A person who is entitled to have a tribunal order enforced by a sheriff on payment of a fee may request a fee waiver under this section by giving a written request to the sheriff, in the form provided by the Ministry.

Certificate

(2)  If the sheriff determines that the person meets the prescribed conditions, he or she shall give the person a certificate indicating that all fees relating to the enforcement of the order that are or would be payable by the person on or after the date of the certificate are waived.

Decision final

(3)  The sheriff's decision is final.

Fee waiver re enforcement of tribunal order: judge, etc.

Request

4.7  (1)  A person who is entitled to have a tribunal order enforced by a sheriff on payment of a fee may request a fee waiver under this section by giving a written request, in the form provided by the Ministry,

(a) to a judge or deputy judge of the Small Claims Court, if the order relates only to the payment of an amount within the monetary jurisdiction of that court; or

(b) to a judge or case management master of the Superior Court of Justice, in any other case.

Role of clerk or registrar

(2)  The clerk or registrar of the court shall consider the request before it is considered by the judge, deputy judge or case management master, and if the clerk or registrar determines that the person meets the prescribed conditions referred to in subsection 4.3 (4),

(a) he or she shall give the person a certificate indicating that all fees relating to the enforcement of the tribunal order that are or would be payable by the person on or after the date of the certificate are waived; and

(b) subsections (3) to (5) do not apply.

Order re certificate

(3)  If the judge, deputy judge or case management master is of the opinion that the person lacks the financial means to pay fees relating to the enforcement of the tribunal order, he or she shall make an order directing the clerk or registrar to give the person a certificate indicating that all such fees that are or would be payable by the person on or after the date of the certificate are waived.

Date of certificate

(4)  The date of the certificate shall be the date on which the order is made under subsection (3).

Decision final

(5)  The decision of the judge, deputy judge or case management master is final.

Rules of court and Statutory Powers Procedure Act do not apply

4.8  The rules of court and the Statutory Powers Procedure Act do not apply to requests under sections 4.3, 4.4, 4.5, 4.6 and 4.7.

No fee for request

4.9  No fee is payable for anything done in connection with a request under section 4.3, 4.4, 4.5, 4.6 or 4.7.

3.  Section 5 of the Act is repealed and the following substituted:

Regulations

5.  (1)  The Lieutenant Governor in Council may make regulations,

(a) requiring the payment of fees for any thing required or authorized under any Act to be done by any person in the administration of justice and prescribing the amounts of the fees;

(b) providing for the payment of fees and allowances by Ontario in connection with services under any Act for the administration of justice and prescribing the amounts of the fees and allowances;

(c) requiring the payment of fees in respect of proceedings in any court and prescribing the amounts of the fees;

(d) exempting persons or classes of persons from paying a fee prescribed under clause (a) or (c);

(e) prescribing conditions for the purposes of subsections 4.3 (4), 4.5 (2) and 4.6 (2);

(f) exempting a fee from the application of sections 4.3 to 4.9;

(g) exempting persons or classes of persons from the application of sections 4.3 to 4.9;

(h) governing requests under sections 4.3, 4.4, 4.5, 4.6 and 4.7.

Different fees

(2)  A regulation made under clause (1) (a) or (c) may prescribe different fees for different persons or classes of persons.

Maximum amounts

(3)  A regulation made under clause (1) (a) or (c) may establish a maximum amount for a fee rather than prescribing a specific amount.

General or particular

(4)  A regulation made under subsection (1) may be general or particular in its application.

Commencement

4.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

Same

(2)  Sections 1 to 3 come into force on a day to be named by proclamation of the Lieutenant Governor.

SCHEDULE 2
AMENDMENT TO THE AGRICULTURAL AND HORTICULTURAL ORGANIZATIONS ACT

1.  Section 25 of the Agricultural and Horticultural Organizations Act is amended by adding the following subsection:

International Plowing Match

(4)  The local organizing committee for the annual International Plowing Match shall be deemed to be an agricultural society in the year it hosts the International Plowing Match, but only for the purposes of the application of subsection 9 (2) of the Retail Sales Tax Act to the International Plowing Match.

Commencement

2.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

Same

(2)  Section 1 shall be deemed to have come into force on January 1, 2004.

SCHEDULE 3
AMENDMENTS TO THE ASSESSMENT ACT

1.  (1)  Subsection 2 (2) of the Assessment Act, as amended by the Statutes of Ontario, 1994, chapter 36, section 1, 1997, chapter 5, section 2, 1997, chapter 29, section 2, 1997, chapter 43, Schedule G, section 18, 2000, chapter 25, section 1, 2001, chapter 23, section 1, 2002, chapter 17, Schedule F, Table, 2002, chapter 22, section 1 and 2004, chapter 7, section 1, is amended by adding the following clause:

(a) prescribing information for the purposes of paragraph 21 of subsection 14 (1);

(2)  Clause 2 (2) (f) of the Act, as enacted by the Statutes of Ontario, 2001, chapter 23, section 1, is repealed and the following substituted:

(f) prescribing buildings, structures or portions of buildings or structures for the purposes of subsection 19.0.1 (1) and prescribing their assessed value or the manner of determining their assessed value for the purposes of that subsection;

2.  Paragraph 27 of subsection 3 (1) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 29, section 3, is repealed and the following substituted:

Large non-profit theatres

27. Land owned by a non-profit corporation without share capital, other than any portion of the land occupied for more than 90 consecutive days by an entity other than a non-profit corporation without share capital, on which is situated a theatre containing at least 1,000 seats that is used for a total of at least 183 days in the taxation year for the rehearsal or presentation of live performances of drama, comedy, music or dance, including opera or ballet, if the live performances are not presented with the intention of generating profit, including land on which such a theatre is being constructed, but not if,

i. the theatre is operated or will be operated after it is constructed by an entity other than a non-profit corporation without share capital,

ii. the land is used as a dinner theatre, nightclub, tavern, cocktail lounge, bar, striptease club or similar establishment, or

iii. an establishment described in subparagraph ii is being constructed on the land.

3.  (1)  Section 3.1 of the Act, as enacted by the Statutes of Ontario, 2002, chapter 23, section 1 and amended by 2004, chapter 23, Schedule C, section 1, is repealed.

(2)  Despite subsections 3.1 (2), (3), (4) and (6) of the Act, as they read before subsection (1) came into force, no land is exempt from taxation after November 25, 2002 by reason of section 3.1 of the Act, as it read before subsection (1) came into force.

4.  Subsection 14 (1) of the Act, as amended by the Statutes of Ontario, 1992, chapter 17, section 4, 1997, chapter 5, section 9, 1997, chapter 29, section 6, 1997, chapter 31, section 143, 1997, chapter 43, Schedule G, section 18 and 2000, chapter 25, section 4, is amended by adding the following paragraph:

21. Such other information as may be prescribed by the Minister.

5.  (1)  Section 19 of the Act, as amended by the Statutes of Ontario, 1997, chapter 5, section 12, 1997, chapter 29, section 9, 1998, chapter 33, section 5, 1999, chapter 6, section 2, 1999, chapter 9, section 11, 2000, chapter 25, section 5 and 2002, chapter 17, Schedule F, Table, is amended by adding the following subsection:

Prescribing assessed value

(2.1.1)  The Minister may make regulations prescribing the assessed value or the manner of determining the assessed value of an electricity generating station, other than an electricity generating station subject to section 19.0.1.

(2)  Subsection 19 (2.2) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 11, is amended by striking out "subsection (2.1)" and substituting "subsection (2.1) or (2.1.1)".

6.  (1)  Subsection 19.0.1 (1) of the Act, as re-enacted by the Statutes of Ontario, 2001, chapter 23, section 2, is amended by striking out "or" at the end of clause (a), by adding "or" at the end of clause (b) and by adding the following clause:

(c) by the Minister for a particular building or structure or portion of a building or structure specified by the Minister, as prescribed by the Minister.

(2)  Subsection 19.0.1 (4) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 15, Schedule E, section 1, is amended by adding "and" at the end of clause (a) and by striking out clause (c).

7.  Section 19.3 of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 13, is amended by striking out "October 31" and substituting "June 30".

8.  Subsection 25 (2) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 43, Schedule G, section 18, is repealed and the following substituted:

Notice

(2)  On or before March 1 of every year or such other date as the Minister may prescribe, the pipe line company shall notify the assessment corporation of the age, length and diameter of all of its transmission pipe lines located in each municipality on January 1 of that year.

9.  Subsection 30 (1) of the Act, as amended by the Statutes of Ontario, 1997, chapter 43, Schedule G, section 18, is amended by striking out "July 1" in the portion before clause (a) and substituting "March 1 or such other date as the Minister may prescribe".

10.  (1)  Subsection 32 (2) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 25, section 8 and amended by 2002, chapter 17, Schedule F, Table, is amended by striking out "for any part or all of the three preceding years" and substituting "for any part or all of the preceding year".

(2)  Section 32 of the Act, as amended by the Statutes of Ontario, 1997, chapter 43, Schedule G, section 18, 2000, chapter 25, section 8 and 2002, chapter 17, Schedule F, Table, is amended by adding the following subsections:

Change in tax liability

(3)  If, as a result of an amendment to this Act or the regulations, a property becomes exempt from taxation for a year or for part or all of the preceding year,

(a) the assessor shall make any assessment necessary to change the tax liability for the property;

(b) the clerk of the municipality, on receiving notice of the change in tax liability, shall alter the tax roll; and

(c) the municipality shall refund or credit to the owner the amount of any overpayment of taxes and any interest paid by the owner on the amount of the overpayment.

Change in tax methodology

(4)  If, as a result of an amendment to this Act or the regulations, the method of determining the assessed value of a property for a year or for any part or all of the preceding year is changed,

(a) the assessor shall make any assessment necessary to change the assessed value;

(b) the clerk of the municipality, on receipt of notice of the change, shall alter the tax roll; and

(c) the municipality shall,

(i) refund or credit to the owner of the property the amount of any overpayment of taxes and any interest paid by the owner on the amount of the overpayment, or

(ii) levy and collect from the owner of the property any additional taxes that have become payable as a result of the change in the assessment methodology.

Transitional

(5)  For the purposes of subsections (3) and (4), a reference to the preceding year includes a reference to a year ending before, on or after the day subsections (3) and (4) come into force.

11.  Subsection 34 (2) of the Act, as re-enacted by the Statutes of Ontario, 1998, chapter 3, section 8 and amended by 2002, chapter 17, Schedule F, Table, is amended by striking out "during the taxation year or the preceding November or December" and substituting "during the taxation year or the period after June 30 in the preceding taxation year".

Commencement

12.  (1)  Subject to subsections (2) and (3), this Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

Same

(2)  Section 2 shall be deemed to have come into force on January 1, 2003.

Same

(3)  Sections 7, 8 and 9 come into force on January 1, 2005.

SCHEDULE 4
AMENDMENT TO THE BUSINESS CORPORATIONS ACT

1.  Subsection 241 (1) of the Business Corporations Act, as amended by the Statutes of Ontario, 2004, chapter 16, Schedule D, Table, is repealed and the following substituted:

Notice of dissolution

(1)  Where the Director is notified by the Minister of Finance that a corporation is in default of complying with any of the following Acts, the Director may give notice by registered mail to the corporation or by publication once in The Ontario Gazette that an order dissolving the corporation will be issued unless the corporation remedies its default within 90 days after the notice is given:

1. Corporations Tax Act.

2. Employer Health Tax Act.

3. Fuel Tax Act.

4. Gasoline Tax Act.

5. Land Transfer Tax Act.

6. Retail Sales Tax Act.

7. Tobacco Tax Act.

Commencement

2.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

Same

(2)  Section 1 comes into force on a day to be named by proclamation of the Lieutenant Governor.

SCHEDULE 5
AMENDMENT TO THE CAPITAL INVESTMENT PLAN ACT, 1993

1.  Subsection 64 (1) of the Capital Investment Plan Act, 1993 is repealed and the following substituted:

Delegation of powers

(1)  Any power or duty conferred or imposed on the Minister of Finance under this or any other Act may be delegated by the Minister to the Deputy Minister of Finance or to any other public servant within the meaning of the Public Service Act who is employed in or provides services to the Ministry and, when purporting to exercise a delegated power or duty, the delegate shall be presumed conclusively to act in accordance with the delegation.

Commencement

2.  This Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

SCHEDULE 6
AMENDMENTS TO THE COMMODITY FUTURES ACT

1.  Clause 59.2 (b) of the Commodity Futures Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 11, is repealed and the following substituted:

(b) would reasonably be expected to have a significant effect on the market price or value of a commodity or contract.

2.  Subsection 60 (2.1) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 12, is repealed and the following substituted:

Exception

(2.1)  A person or company is not entitled to participate in a proceeding in which an order may be made under paragraph 9 or 10 of subsection (1) solely on the basis that the person or company may be entitled to receive any amount paid under the order.

3.  Subsection 76 (1) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 47, is repealed and the following substituted:

Review by Select or Standing Committee

Appointment of first advisory committee

(1)  On or before May 31, 2005, the Minister shall appoint an advisory committee to review the legislation, regulations and rules relating to matters dealt with by the Commission and the legislative needs of the Commission.

Appointment of subsequent advisory committees

(1.1)  The Minister shall appoint an advisory committee to perform the functions described in subsection (1) not later than 48 months after the appointment of the previous advisory committee appointed under subsection (1) or this subsection.

Commencement

4.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

Same

(2)  Section 1 comes into force on a day to be named by proclamation of the Lieutenant Governor.

SCHEDULE 7
AMENDMENTS TO THE COMMUNITY SMALL BUSINESS INVESTMENT FUNDS ACT

1.  (1)  The definition of "eligible business activity" in subsection 1 (1) of the Community Small Business Investment Funds Act, as re-enacted by the Statutes of Ontario, 1994, chapter 17, section 76 and amended by 1997, chapter 43, Schedule C, section 2 and 2004, chapter 16, section 1, is repealed and the following substituted:

"eligible business activity" means, except for the purposes of Parts III.1 and III.2, a business activity of a corporation or partnership that would be an "active business carried on by a corporation", as defined in subsection 125 (7) of the Income Tax Act (Canada) if the business activity were carried on by a corporation; ("activité commerciale admissible")

(2)  The definition of "eligible investment" in subsection 1 (1) of the Act, as amended by the Statutes of Ontario, 1997, chapter 43, Schedule C, section 2 and 2004, chapter 16, section 1, is amended by striking out "and" at the end of clause (b), by adding "and" at the end of clause (c) and by adding the following clause:

(d) in respect of an Ontario commercialization investment fund, an investment in an eligible business that is an eligible investment under Part III.2;

(3)  The definition of "eligible investor" in subsection 1 (1) of the Act, as amended by the Statutes of Ontario, 1997, chapter 43, Schedule C, section 2 and 2004, chapter 16, section 1, is amended by striking out "Part II, III or III.1" and substituting "Part II, III, III.1 or III.2".

(4)  The definition of "investment corporation" in subsection 1 (1) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule C, section 2 and amended by 2004, chapter 16, section 1, is amended by striking out "Part II, III or III.1" and substituting "Part II, III, III.1 or III.2".

(5)  Subsection 1 (1) of the Act, as amended by the Statutes of Ontario, 1994, chapter 17, section 76, 1997, chapter 43, Schedule C, sections 2 and 23, 1998, chapter 34, section 12, 1999, chapter 9, section 50, 2000, chapter 42, section 1 and 2004, chapter 16, section 1, is amended by adding the following definitions:

"Ontario commercialization investment fund" means a corporation or partnership registered under Part III.2; ("fonds ontarien de financement de la commercialisation")

"Ontario commercialization investment fund grant" means a grant for which an Ontario commercialization investment fund may apply under Part III.2; ("subvention ontarienne de financement de la commercialisation")

(6)  Section 1 of the Act, as amended by the Statutes of Ontario, 1994, chapter 17, section 76, 1997, chapter 43, Schedule C, sections 2 and 23, 1998, chapter 34, section 12, 1999, chapter 9, section 50, 2000, chapter 42, section 1, 2002, chapter 22, section 16 and 2004, chapter 16, section 1, is amended by adding the following subsection:

Interpretation, Ontario commercialization investment fund

(10)  A reference in this Act to an investment corporation shall be deemed to include a reference to a partnership that is registered as an Ontario commercialization investment fund and a reference to a shareholder of an investment corporation shall be deemed to include a reference to a partner in a partnership that is registered as an Ontario commercialization investment fund.

2.  (1)  Subsection 6 (4) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 43, Schedule C, section 4 and amended by 2002, chapter 22, section 19 and 2004, chapter 16, section 1, is amended by striking out "Minister of Enterprise, Opportunity and Innovation" and substituting "Minister of Economic Development and Trade".

(2)  Subsection 6 (6) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 43, Schedule C, section 4 and amended by 2002, chapter 22, section 19 and 2004, chapter 16, section 1, is amended by striking out "Minister of Enterprise, Opportunity and Innovation" in the portion before clause (a) and substituting "Minister of Economic Development and Trade".

3.  (1)  The definition of "eligible business" in subsection 12 (1) of the Act, as re-enacted by the Statutes of Ontario, 1994, chapter 17, section 82 and amended by 1997, chapter 43, Schedule C, section 5 and 2004, chapter 16, section 1, is repealed and the following substituted:

"eligible business" means a taxable Canadian corporation or Canadian partnership,

(a) that is primarily engaged in eligible business activities,

(b) that pays 50 per cent or more of its wages and salaries to employees whose ordinary place of employment is a permanent establishment of the corporation or partnership located in Ontario,

(c) that has 50 per cent or more of its full-time employees employed in respect of eligible business activities carried on by the corporation or partnership in Ontario,

(d) that, at the time the labour sponsored investment fund corporation makes the investment in the taxable Canadian corporation or Canadian partnership,

(i) has total gross assets, together with the total gross assets of all related corporations and partnerships, not exceeding $50,000,000, calculated in the prescribed manner, or such other amount as may be prescribed,

(ii) together with all related corporations and partnerships, does not have more than 500 employees, or such other number as may be prescribed, and

(iii) has been primarily engaged in eligible business activities for at least two years, or for the total length of time it has been carrying on any business if it has carried on business less than two years, and

(e) that is not an investment corporation registered under Part III.1 or III.2; ("entreprise admissible")

(2)  Section 12 of the Act, as amended by the Statutes of Ontario, 1994, chapter 17, section 82, 1997, chapter 43, Schedule C, section 5, 1999, chapter 9, section 52, 2000, chapter 42, section 3, 2002, chapter 22, section 20 and 2004, chapter 16, section 1, is amended by adding the following subsection:

Deemed eligible business, flow-through investment

(1.1)  A taxable Canadian corporation or Canadian partnership that is not an eligible business under subsection (1) only because it is not primarily engaged in eligible business activities shall be deemed to be an eligible business for the purposes of this Part if, within a reasonable number of days after the labour sponsored investment fund corporation makes an investment in the corporation or partnership, the corporation or partnership invests all or substantially all of the amount of the investment in a corporation or partnership that meets the definition of "eligible business" under subsection (1).

(3)  Subsection 12 (2) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule C, section 5 and amended by 2004, chapter 16, section 1, is amended by striking out "clause (d)" and substituting "subclause (d) (ii)".

4.  Section 15 of the Act, as amended by the Statutes of Ontario, 2004, chapter 16, section 1, is amended by adding the following subsections:

Moratorium

(4)  Despite subsection (1), the Minister may declare a registration moratorium during which no employee organization is entitled to registration of a corporation under this Part.

Time

(5)  A moratorium is effective for the period of time declared by the Minister, but the Minister may terminate or extend a moratorium if the Minister in his or her sole discretion considers the termination or extension necessary or advisable in the circumstances.

Notice

(6)  The Minister may impose, terminate or extend a moratorium without prior notice.

Transitional

(7)  Any moratorium declared by the Minister on or after May 18, 2004 and before subsection (4) comes into force shall be deemed to be a moratorium declared in accordance with this section, effective for the period of time declared by the Minister.

5.  (1)  Clause 16.1 (2) (d) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 6 and amended by 2004, chapter 16, section 1, is repealed and the following substituted:

(d) if the aggregate cost of the corporation's investments, each of which is an eligible investment in a research business that was held at the end of the preceding year, is equal to at least 50 per cent, or such other percentage as may be prescribed, of its capital available for investment at August 31 or December 31 of that year, whichever amount of capital is less, or if, instead, the corporation gives the undertaking described in subsection (5).

(2)  Subsection 16.1 (5) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 6 and amended by 2004, chapter 16, section 1, is repealed and the following substituted:

Undertaking re investments

(5)  For the purposes of clause (2) (d), a labour sponsored investment fund corporation that has not made any investments may give the Minister a written undertaking that, before the end of the calendar year referred to in subsection (2), it will make one or more investments, each of which is an eligible investment in a research business and that the cost of those investments will equal at least 50 per cent, or such other percentage as may be prescribed, of the capital available for investment by the corporation at August 31 or December 31 of that year, whichever amount of capital is less.

6.  The definition of "D" in subsection 17 (1) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 54 and amended by 2004, chapter 16, section 1, is repealed and the following substituted:

"D" is 70 per cent of the lesser of,

(a) the aggregate amount of gains of the corporation realized on its eligible investments before the end of the applicable calendar year, and

(b) the amount of "C";

7.  (1)  Clause 18 (1) (a) of the Act, as amended by the Statutes of Ontario, 1994, chapter 17, section 85 and 2004, chapter 16, section 1, is repealed and the following substituted:

(a) the investment is made in an eligible business;

(2)  Subsection 18 (1) of the Act, as amended by the Statutes of Ontario, 1994, chapter 17, section 85, 1999, chapter 9, section 55 and 2004, chapter 16, section 1, is amended by adding "and" at the end of clause (b) and by striking out clause (c).

(3)  Subsections 18 (5) and (6) of the Act, as amended by the Statutes of Ontario, 2004, chapter 16, section 1, subsection 18 (7) of the Act, as amended by 1994, chapter 17, section 85 and 2004, chapter 16, section 1, and subsection 18 (9) of the Act, as enacted by 1994, chapter 17, section 85 and amended by 2004, chapter 16, section 1, are repealed.

(4)  Subsection 18 (11) of the Act, as re-enacted by the Statutes of Ontario, 1999, chapter 9, section 55 and amended by 2002, chapter 22, section 21 and 2004, chapter 16, section 1, is repealed and the following substituted:

Relending, etc., to holding company

(11)  Despite subclause (1) (d) (i), in the case of an investment in a corporation or partnership described in subsection 12 (1.1), the investment may be used by the eligible business for the purpose of relending to an eligible business or to a related corporation or partnership, but only if the investment is not used or intended to be used by the recipient corporation or partnership in a manner that contravenes clause (1) (d).

(5)  Section 18 of the Act, as amended by the Statutes of Ontario, 1994, chapter 17, section 85, 1996, chapter 29, section 11, 1999, chapter 9, section 55, 2002, chapter 22, section 21 and 2004, chapter 16, section 1, is amended by adding the following subsections:

Contravention of spirit and intent

(12)  Despite subsection (1) and any order made under subsection (10), if the Minister is of the opinion that a labour sponsored investment fund corporation has directly or indirectly through a transaction or series of transactions contravened the spirit and intent of this Act, the Minister,

(a) shall make an order that a particular investment is not an eligible investment as of the date of the transaction or the date of the first transaction in the series of transactions; and

(b) may revoke the registration of the labour sponsored investment fund corporation in accordance with section 26 if the Minister has previously made an order referred to in clause (a) in respect of any investment made by the labour sponsored investment fund corporation.

Penalty, investment advisor

(13)  If a labour sponsored investment fund corporation has, by reason of a transaction or series of transactions, contravened a provision of this Act or been found by the Minister under subsection (12) to have contravened the spirit and intent of this Act, the Minister may assess a penalty against every person, other than an employee of the labour sponsored investment fund corporation, who acted on behalf of the labour sponsored investment fund corporation in identifying, investigating, structuring, negotiating the transaction or any transaction in the series of transactions or in administering the investment affairs of the labour sponsored investment fund corporation and who knew or ought to have known that the transaction or series of transactions contravened this Act or was contrary to the spirit and intent of this Act and the amount of any penalty assessed by the Minister shall be,

(a) 1.5 per cent of the amount paid by the labour sponsored investment fund corporation in the transaction or series of transactions, up to a maximum of $50,000 on a first contravention; or

(b) 3 per cent of the amount paid by the labour sponsored investment fund corporation in the transaction or series of transactions, up to a maximum of $100,000 for each subsequent contravention.

Fundamental principles

(14)  In determining whether an investment contravenes the spirit and intent of the Act, the Minister shall consider the factors that are, in his or her opinion, relevant, including but not limited to the following factors:

1. Whether the labour sponsored investment fund corporation provides direct financial, investment and managerial advice to small and medium-sized Ontario-owned and operated businesses, with the objective of supporting the growth of those businesses.

2. Whether the recipient business has unrestricted access to the capital invested for the operation and development of the business.

3. Whether a material portion of the economic value of the investment for the labour sponsored investment fund corporation is derived, directly or indirectly, from a business other than an eligible business.

4. If an investment has been made indirectly through a subsidiary of the labour sponsored investment fund corporation, whether the subsidiary made a reasonable attempt to invest in small or medium-sized Ontario businesses.

5. Whether a material portion of the investment proceeds were not used by the eligible business before the labour sponsored investment fund corporation disposed of its investment.

8.  Subsection 18.1 (5) of the Act, as re-enacted by the Statutes of Ontario, 2001, chapter 23, section 13 and amended by 2004, chapter 16, section 1, is repealed and the following substituted:

Limit on investment in listed companies

(5)  During 2004 and each subsequent calendar year, a labour sponsored investment fund corporation shall not make investments in eligible businesses that are listed companies to the extent that the cost of those investments exceeds 25 per cent of the total cost of all investments made in eligible businesses by the corporation in that calendar year or the previous calendar year, whichever is greater.

9.  The Act is amended by adding the following Part:

PART III.2
ONTARIO COMMERCIALIZATION
INVESTMENT FUNDS

Interpretation

Definitions

18.11  (1)  In this Part,

"eligible business" means a taxable Canadian corporation that meets the criteria described in subsection (2); ("entreprise admissible")

"eligible business activity" and "intellectual property" have the meanings assigned by subsection 18.2 (1); ("activité commerciale admissible" et "propriété intellectuelle")

"eligible investor" means an accredited investor as defined in Ontario Securities Commission Rule 45-501 entitled "Exempt Distributions", but does not include, unless otherwise prescribed,

(a) a corporation registered under Part III as a labour sponsored investment fund corporation,

(b) a corporation registered under Part III.1 as a community small business investment fund corporation,

(c) the Business Development Bank of Canada incorporated under the Business Development Bank of Canada Act (Canada),

(d) the government of Canada or of any jurisdiction, or any crown corporation, instrumentality or agency of a Canadian federal, provincial or territorial government,

(e) any Canadian municipality or any Canadian provincial or territorial capital city,

(f) any national, federal, state, provincial, territorial or municipal government of or in any foreign jurisdiction or any instrumentality or agency thereof,

(g) an individual who is not resident in Canada,

(h) a corporation or partnership that does not have a permanent establishment in Canada,

(i) an investor who is a prescribed person or who is a member of a prescribed class; ("investisseur admissible")

"eligible research institute" has the meaning assigned by subsection 43.9 (29) of the Corporations Tax Act; ("institut de recherche admissible")

"sponsor" means an eligible research institute that qualifies to apply for registration of a corporation or partnership as an Ontario commercialization investment fund under subsection 18.13 (1). ("commanditaire")

Eligible business

(2)  A taxable Canadian corporation must meet the following criteria in order to be an eligible business in relation to an Ontario commercialization investment fund:

1. At the time of initial investment by an Ontario commercialization investment fund, the corporation must be commencing activities as a new business and must be primarily engaged in or planning to be primarily engaged in one or more of the following activities:

i. the research, development and construction of a prototype,

ii. the development of a manufacturing process,

iii. the implementation of a marketing or distribution strategy for a product, or

iv. a similar activity that is in respect of a service.

2. At the time of initial investment by an Ontario commercialization investment fund, the corporation has a reasonable expectation of profit.

3. The corporation has a total revenue determined in accordance with generally accepted accounting principles of less than the prescribed amount or, if no amount is prescribed, $500,000 from the time of its incorporation until the time of the initial investment by an Ontario commercialization investment fund.

4. The corporation was formed to exploit intellectual property developed by individuals who, at the time of the initial investment by an Ontario commercialization investment fund or within three years before the time of initial investment, are faculty, staff or students of a sponsor of the Ontario commercialization investment fund.

5. During the period from January 1 of the year in which an initial or follow-on investment is made to the date of the particular investment, the corporation pays 50 per cent or more of its wages and salaries to employees whose ordinary place of employment is a permanent establishment of the corporation in Ontario.

6. At the time of an initial or follow-on investment, at least 50 per cent of the corporation's full-time employees are employed in respect of eligible business activities carried on by the corporation in Ontario.

7. At the time of initial investment by an Ontario commercialization investment fund, the value of the total tangible assets of the corporation, together with the total tangible assets of all related corporations and the total tangible assets of all partnerships in which the corporation or the related corporation is a member, does not exceed the prescribed amount or, if no amount is prescribed, $500,000.

8. The corporation was incorporated under the Business Corporations Act or the Canada Business Corporations Act.

New business

(3)  For the purposes of subsection (2), a new business may include a business located in an existing incubator facility that provides workspace and business support services.

Eligible investment

(4)  An investment made by an Ontario commercialization investment fund is an eligible investment for the purposes of this Part if,

(a) the investment is made before January 1, 2009 in a business that is an eligible business when the investment is made;

(b) the investment is,

(i) the purchase from the eligible business by the Ontario commercialization investment fund of shares issued by the eligible business in exchange for a consideration paid in money, or

(ii) the purchase of a warrant, option or right granted by the eligible business, in conjunction with the issue of a share that is an eligible investment, to acquire a share of the eligible business that would be an eligible investment if that share were issued at the time that the warrant, option or right was granted; and

(c) the investment is not used or intended to be used by the eligible business for the purpose of,

(i) relending,

(ii) investment in land, except land that is incidental and ancillary to the eligible business activity or activities in which the eligible business is primarily engaged,

(iii) reinvestment or the acquisition of any securities of any person,

(iv) subject to subsection (5) or (6), financing the purchase or sale of goods or services provided to the eligible business by or through a shareholder of or partner in the Ontario commercialization investment fund or a person related to the shareholder or partner,

(v) the payment of dividends,

(vi) the return of capital to a shareholder of the eligible business or the payment of the principal amount of outstanding liabilities owing to a shareholder of the eligible business by the eligible business,

(vii) the payment of the principal amount of outstanding liabilities owing to shareholders of the Ontario commercialization investment fund or to persons related to its shareholders, or to partners of the Ontario commercialization investment fund or to persons related to its partners,

(viii) carrying on a business primarily outside Ontario, or

(ix) any prescribed purpose or use.

Exception

(5)  Subclause (4) (c) (iv) does not apply with respect to the purchase of goods or services from a shareholder or partner who is a sponsor of the corporation or from a person who is related to a shareholder or partner.

Same

(6)  Any amounts paid on the purchase of goods and services referred to in subclause (4) (c) (iv) are deemed not to include,

(a) banking fees and other amounts normally charged by a bank to its customers for providing services in the ordinary course of the bank's business; and

(b) reasonable salaries and wages paid to employees.

Meaning of "related"

(7)  For the purposes of this Part,

(a) two or more entities are related if they would be related under section 251 of the Income Tax Act (Canada); and

(b) eligible investments made by an Ontario commercialization investment fund are related if the eligible businesses in which the investments are made are related.

Policy intent

18.12  The policy intent of this Part is to,

(a) raise the profile of venture capital support for commercialization at Ontario-based research institutes;

(b) encourage research institutes to partner with accredited investors in commercializing research developed by the faculty, staff, students and alumni of research institutes; and

(c) encourage the investment of capital to support the growth and development of new entrepreneurial firms created as a result of research developed through research institutes.

Application for registration

18.13  (1)  An eligible research institute may, as a sponsor, apply for registration under this Part of a corporation or a partnership as an Ontario commercialization investment fund if,

(a) the corporation or partnership has a permanent establishment in Ontario; and

(b) the eligible research institute demonstrates that it will be actively involved in the business and affairs of the corporation or partnership.

One or more sponsors permitted

(2)  An application for registration of a corporation or partnership under this Part may be made by one or more eligible research institutes as sponsors and an eligible research institute may apply to the Minister in the form and manner specified by the Minister to be included as a sponsor of a corporation or partnership that is already registered under this Part.

Institute may sponsor more than one corporation

(3)  An eligible research institute may act as a sponsor of more than one corporation or partnership.

Proposal

(4)  An application for registration under this Part shall be made by filing with the Minister a proposal in duplicate setting out the following information:

1. The names of the corporation or partnership and the sponsor or sponsors.

2. The location of the registered office and all permanent establishments in Ontario of the corporation or partnership and the sponsor or sponsors.

3. In the case of a corporation, an investment plan for the corporation specifying,

i. the rights and privileges attached to each class or series of shares of the corporation, the amount of the stated capital account of each class or series of shares issued and to be issued and the total amount of equity capital for which the shares were or will be issued,

ii. the amounts and kinds of debt obligation, if any, issued by the corporation,

iii. any restrictions on ownership and voting rights of the shares of the corporation,

iv. the terms and conditions for redemption of shares,

v. the proposed number of shareholders of the corporation,

vi. details of the corporation's proposed investment objectives and policies, and

vii. any other matters prescribed to be set out in the investment plan.

4. In the case of a partnership, an investment plan for the partnership specifying,

i. the method of income or loss allocation to each partner,

ii. the capital contribution of each partner,

iii. the roles and responsibilities of each partner,

iv. how the partnership can be dissolved,

v. the amounts and kinds of debt obligation, if any, issued or payable by the partnership,

vi. the proposed number of partners in the partnership,

vii. details of the partnership's proposed investment objectives and policies, and

viii. any other matters prescribed to be set out in the investment plan.

5. A description of the active involvement that the sponsor will have in the conduct of the business and affairs of the corporation or partnership.

6. In the case of a corporation,

i. the number of directors of the corporation and the name in full and the residence address of each director, and

ii. the names in full of the officers of the corporation and the residence address of each of them.

7. In the case of a partnership, the number of partners in the partnership and the name in full and the address of each partner.

8. Any other matter required by the regulations to be set out in the proposal.

Additional information

(5)  A proposal shall be accompanied by,

(a) in the case of a corporation,

(i) a certified copy of the articles of the corporation, and

(ii) a true copy of all shareholders' agreements, partnership agreements and proposed agreements relating to the corporation to which the corporation is a party or of which an officer or director of the corporation or a sponsor, after making reasonable inquiry, has knowledge;

(b) in the case of a partnership,

(i) a certified copy of all partnership agreements for the partnership, and

(ii) a true copy of all proposed agreements relating to the partnership to which the partnership is a party or of which a partner of the partnership or a sponsor, after making reasonable inquiry, has knowledge; and

(c) any other prescribed material.

Certificate

(6)  The proposal and a certificate certifying that the information contained in the proposal is complete and accurate must be signed on behalf of the corporation or partnership by two officers or one director and one officer of the corporation or by a designated partner of the partnership, as the case may be.

Signature by sponsor

(7)  The proposal must be signed on behalf of each sponsor by the president or chief executive officer of the sponsor or by an individual in an equivalent position.

Corporate qualifications

(8)  No corporation may be registered under this Part unless,

(a) the corporation was incorporated under the Business Corporations Act or the Canada Business Corporations Act and is in compliance with that Act and the Securities Act;

(b) the corporation has never previously carried on business other than the business related to obtaining registration under this Act;

(c) the articles of the corporation specify that each shareholder must be an eligible investor and must invest at least $25,000 in shares of the corporation;

(d) the corporation has demonstrated active involvement by the sponsor to the satisfaction of the Minister; and

(e) the corporation meets all other prescribed conditions.

Partnership qualifications

(9)  No partnership may be registered under this Part unless,

(a) the partnership is operating in compliance with the laws of Ontario relating to partnerships and the Securities Act;

(b) the partnership has never previously carried on business other than the business related to obtaining registration under this Act;

(c) the partnership agreement specifies that each partner must be an eligible investor and must invest at least $25,000 in the partnership;

(d) the partnership has demonstrated active involvement by the sponsor to the satisfaction of the Minister; and

(e) the partnership meets all other prescribed conditions.

Registration

Entitlement to registration

18.14  (1)  A corporation or a partnership is entitled to be registered under this Part by the Minister if all of the following requirements are met:

1. The sponsor or sponsors of the corporation or partnership apply for registration under this Part and file the required documents before January 1, 2007.

2. The requirements of section 18.13 are satisfied.

Refusal

(2)  Subject to section 31, the Minister may refuse to register a corporation or a partnership if, in the Minister's opinion, the corporation or the partnership is not entitled to be registered.

Same

(3)  Subject to section 31, the Minister may refuse to register a corporation or a partnership if, in the Minister's opinion, the proposed investments or the actions of the corporation or the partnership, its officers, directors, shareholders, partners, or of a sponsor, do not comply with the policy intent of this Part.

Issuance of certificate of registration

(4)  On registration of a corporation or a partnership under this Part, the Minister shall,

(a) endorse on each duplicate of the proposal "Registered/Agréée" and the day, month and year of registration;

(b) file one of the duplicates in the Minister's office;

(c) place the name of the corporation or partnership in the register of investment corporations as a registered Ontario commercialization investment fund; and

(d) issue to the corporation or partnership a certificate of registration to which the Minister shall affix the other duplicate proposal.

Application for investment certificate and determination of grant

18.15  (1)  An Ontario commercialization investment fund may apply to a person designated by the Minister of Economic Development and Trade or by the Minister for a certificate,

(a) indicating that an investment that has been made or is proposed to be made by the fund is an eligible investment; and

(b) specifying the amount of an Ontario commercialization investment fund grant that would be available in respect of the investment.

Same

(2)  An application under subsection (1) in respect of an investment is required for a follow-on investment in the same eligible business, even if a certificate has been obtained under this section for the initial investment.

Additional information

(3)  An Ontario commercialization investment fund that applies for a certificate shall provide to the designated person the information specified by the person for the purposes of determining if the investment or proposed investment is an eligible investment.

Certificate

(4)  If the designated person is satisfied that the business in which the investment by the Ontario commercialization investment fund has been made or is proposed to be made is an eligible business and that the investment will be an eligible investment, the designated person shall issue to the fund a certificate,

(a) stating that the investment or proposed investment is an eligible investment for the purposes of this Part; and

(b) specifying the amount of an Ontario commercialization investment fund grant, if any, that would be available in respect of the investment.

Amount of the grant

(5)  Subject to subsections (6), (7) and (8), the amount of a grant under this Part is 30 per cent of the amount invested by an Ontario commercialization investment fund in an eligible investment.

When grant is available

(6)  No grant is available to an Ontario commercialization investment fund unless it has made at least three eligible investments, each of which is an investment in an eligible business that is not related to either of the other two eligible businesses.

Maximum grant for investment in eligible business

(7)  The total amount of grants available to one or more Ontario commercialization investment funds under this Part in respect of eligible investments in a particular eligible business and all businesses related to the eligible business is,

(a) $225,000 if the Minister has not specified an amount under clause (b); or

(b) such amount, if any, in excess of $225,000 as may be specified by the Minister, if the Minister is satisfied that an increase in the total amount of grants under this Part is justified to better meet the objectives of this Part.

Maximum grants under this Part

(8)  The maximum amount of grants available under this Part is $36 million and no additional grant shall be allowed under this Part after the total amount of grants allowed under this Part reaches $36 million.

Application for Ontario commercialization investment fund grant

18.16  (1)  An Ontario commercialization investment fund that meets the conditions described in section 18.15 may, not later than March 31 of the year following the year in which the fund satisfied the conditions, apply for its first Ontario commercialization investment fund grant in respect of all eligible investments made by the end of the year in which the conditions were satisfied.

Application for subsequent grants

(2)  An Ontario commercialization investment fund that has met the conditions described in section 18.15 before the beginning of a year and has previously applied for a grant under subsection (1) may apply during the year for an Ontario commercialization investment fund grant in respect of eligible investments for which it has not previously applied for a grant under subsection (1) or this subsection.

Time for applying

(3)  An application under subsection (2) for a grant in respect of an eligible investment shall be made not later than March 31 of the year following the year in which the fund made the eligible investment.

Form and manner of application

(4)  An application under subsection (1) or (2) must be made in the form and manner approved by the Minister and shall contain such information as the Minister may require to verify the amount of the investment and to confirm that the investment was an eligible investment at the time it was made.

Grant payment

(5)  Subject to subsections (6) and 18.15 (6), (7) and (8), the Minister shall pay Ontario commercialization investment fund grants to Ontario commercialization investment funds in the amounts determined under subsection 18.15 (5).

No grant payable

(6)  The Minister shall not pay an Ontario commercialization investment fund grant to an Ontario commercialization investment fund if,

(a) the fund is not in compliance with this Act; or

(b) the Minister is of the opinion that the fund is conducting its business and affairs in a manner that is contrary to the policy intent of this Part, whether or not there has been a contravention of this Act or the regulations.

Demand for repayment of grant

18.17  If the Minister determines that an Ontario commercialization investment fund received a grant to which it was not entitled or received a grant in an amount in excess of the amount to which it was entitled, the Minister shall demand repayment of the grant or excess amount of the grant in accordance with subsection 30 (1).

Annual report to the Minister

18.18  Every Ontario commercialization investment fund shall provide annually to the Minister, in a form and in a manner approved by the Minister, such information with respect to its eligible investments as the Minister may require.

10.  Section 19 of the Act, as amended by the Statutes of Ontario, 1997, chapter 43, Schedule C, sections 11 and 23, 1998, chapter 34, section 19, 2002, chapter 8, Schedule I, section 6 and 2004, chapter 16, section 1, is amended by adding the following subsection:

No other restrictions

(2.1)  Subsection (1) does not apply to limit the investments that can be made or maintained by an Ontario commercialization investment fund.

11.  (1)  Subsection 20 (2) of the Act, as re-enacted by the Statutes of Ontario, 1999, chapter 9, section 61 and amended by 2004, chapter 16, section 1, is repealed and the following substituted:

Labour sponsored investment fund corporation

(2)  A labour sponsored investment fund corporation (the "corporation") shall not invest or maintain an investment in a business that is or was at any time an eligible business for the purposes of Part III if the aggregate of all investments made by the corporation in the business and any related business exceeds $15 million.

(2)  Subsection 20 (3) of the Act, as amended by the Statutes of Ontario, 1999, chapter 9, section 61 and 2004, chapter 16, section 1, is repealed.

12.  Section 24 of the Act, as amended by the Statutes of Ontario, 1997, chapter 43, Schedule C, sections 13 and 23 and 2004, chapter 16, section 1, is amended by adding the following subsection:

Exception

(1.1)  Subsection (1) does not apply in respect of an investment corporation that is an Ontario commercialization investment fund corporation.

13.  (1)  Subsection 25 (3) of the Act, as re-enacted by the Statutes of Ontario, 2000, chapter 42, section 7 and amended by 2004, chapter 16, section 1, is repealed and the following substituted:

Issuance of tax credit certificates

(3)  Subject to subsection (11), a labour sponsored investment fund corporation shall issue a tax credit certificate on behalf of the Minister to each eligible investor who has subscribed for a Class A share of the corporation during the calendar year or within 60 days after the end of the calendar year in respect of an investment corporation tax credit to be claimed by the eligible investor in respect of that share under the Income Tax Act.

Form of certificate

(3.1)  A labour sponsored investment fund corporation shall issue a tax credit certificate in a form approved by the Minister and must indicate in the certificate the taxation year in respect of which the tax credit may be claimed.

(2)  Subsection 25 (5) of the Act, as amended by the Statutes of Ontario, 2004, chapter 16, section 1, is amended by striking out "subsection (1) or (3)" and substituting "subsection (1)".

(3)  Subsection 25 (7) of the Act, as amended by the Statutes of Ontario, 1997, chapter 43, Schedule C, section 23, 2002, chapter 22, section 26 and 2004, chapter 16, section 1, is amended by striking out the portion before clause (a) and substituting the following:

Qualifications

(7)  The Minister or a labour sponsored investment fund corporation, as applicable, shall not issue a tax credit certificate under this section unless the Minister or the labour sponsored investment fund corporation, as the case may be, is satisfied that,

. . . . .

(4)  Subclause 25 (7) (b) (i) of the Act, as amended by the Statutes of Ontario, 1997, chapter 43, Schedule C, section 23, 2002, chapter 22, section 26 and 2004, chapter 16, section 1, is repealed and the following substituted:

(i) to claim against tax otherwise payable a tax credit under the Income Tax Act, the Income Tax Act (Canada) or the Corporations Tax Act, other than a labour sponsored investment fund corporation tax credit under the Income Tax Act or section 127.4 of the Income Tax Act (Canada),

(5)  Subclause 25 (7) (b) (ii) of the Act, as amended by the Statutes of Ontario, 2004, chapter 16, section 1, is repealed and the following substituted:

(ii) to claim a deduction from income under the Income Tax Act, the Income Tax Act (Canada) or the Corporations Tax Act, or

(6)  Clause 25 (7) (c) of the Act, as amended by the Statutes of Ontario, 2004, chapter 16, section 1, is repealed and the following substituted:

(c) no tax credit has been previously allowed under the Income Tax Act or the Corporations Tax Act in respect of the shares to which the tax credit certificate relates;

(7)  Subsection 25 (8) of the Act, as amended by the Statutes of Ontario, 1997, chapter 43, Schedule C, section 23 and 2004, chapter 16, section 1, is amended by striking out "subsection (1) or (3)" in the portion before clause (a) and substituting "subsection (1)".

(8)  Subsection 25 (9) of the Act, as amended by the Statutes of Ontario, 1997, chapter 43, Schedule C, section 23 and 2004, chapter 16, section 1, is repealed and the following substituted:

Agent

(9)  The Minister may enter into an arrangement with an employee ownership labour sponsored venture capital corporation or a community small business investment fund corporation upon such terms and conditions as the Minister considers advisable to authorize the corporation as agent for the Minister to issue tax credit certificates under this section on behalf of the Minister.

Minister may establish terms and conditions

(10)  The Minister shall establish, and a labour sponsored investment fund corporation shall comply with, such terms and conditions as the Minister considers necessary relating to the issuance by the labour sponsored investment fund corporation of tax credit certificates under subsection (3) on behalf of the Minister.

Order to stop issuing certificates

(11)  The Minister shall order the labour sponsored investment fund corporation to stop issuing tax credit certificates until further notice if the Minister is of the opinion,

(a) that the labour sponsored investment fund corporation has contravened subsection (3.1) or (7) or has failed to comply with a term or condition established under subsection (10); or

(b) that the corporation or its directors, officers or shareholders are conducting the business or affairs of the labour sponsored investment fund corporation in a manner that is contrary to the spirit and intent of this Act, whether or not there has been a contravention of this Act or the regulations.

14.  (1)  Subsection 25.1 (4) of the Act, as re-enacted by the Statutes of Ontario, 1996, chapter 29, section 13 and amended by 2004, chapter 16, section 1, is repealed and the following substituted:

Order to stop issuing certificates

(4)  If the Minister is of the opinion that a labour sponsored investment fund corporation is not in compliance with section 17 or 18.1 at any particular time, the Minister may order the corporation to stop issuing tax credit certificates in respect of Class A shares issued by the corporation after the date of the order until the corporation provides proof to the satisfaction of the Minister that the corporation is in compliance with sections 17 and 18.1.

(2)  Subsection 25.1 (5) of the Act, as re-enacted by the Statutes of Ontario, 1999, chapter 9, section 64 and amended by 2004, chapter 16, section 1, is repealed and the following substituted:

Penalty

(5)  If a corporation is not in compliance with section 17 or 18.1 or is considered under clause (3) (a) not to be in compliance with either of those sections, the Minister may order the corporation to pay to the Minister a penalty in an amount equal to,

(a) 30 per cent of the equity capital received on the issue of Class A shares by the corporation during the time of the non-compliance, if the corporation is not a research oriented investment fund; or

(b) 40 per cent of the equity capital received on the issue of Class A shares by the corporation during the time of the non-compliance, if the corporation is a research oriented investment fund.

15.  (1)  Subclause 26 (1) (c) (ii) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 43, Schedule C, section 16 and amended by 2002, chapter 22, section 27 and 2004, chapter 16, section 1, is amended by striking out "Minister of Enterprise, Opportunity and Innovation" and substituting "Minister of Economic Development and Trade".

(2)  Clause 26 (1) (e) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 43, Schedule C, section 16 and amended by 2004, chapter 16, section 1, is repealed and the following substituted:

(e) the Minister is of the opinion that the investment corporation, its officers, directors or shareholders, or the employee organization, community sponsor or sponsor connected with it, are conducting their business or affairs in a manner that is contrary to the spirit and intent of this Act or for the purpose of enabling a person to obtain a tax credit or investment credit or grant to which the person would not otherwise be entitled; or

16.  (1)  Subsection 27 (2) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule C, section 17 and amended by 1999, chapter 9, section 66 and 2004, chapter 16, section 1, is repealed and the following substituted:

Repayment of tax credits

(2)  A labour sponsored investment fund corporation whose registration is revoked by the Minister shall immediately pay to the Minister an amount of money equal to the lesser of,

(a) 15 per cent of the equity capital received by the corporation in respect of all Class A shares of the corporation then outstanding less than eight years immediately preceding the date of revocation, surrender of registration, winding-up or dissolution; and

(b) the total amount that would be determined for the purposes of clause (a) if the equity capital received by the labour sponsored investment fund corporation on the issue of each of the shares had been an amount equal to the fair market value of the shares at the date of the revocation, surrender of registration, winding-up or dissolution, and not the amount of equity capital actually received by the corporation.

(2)  Section 27 of the Act, as amended by the Statutes of Ontario, 1994, chapter 17, section 90, 1997, chapter 43, Schedule C, sections 17 and 23, 1999, chapter 9, section 66 and 2004, chapter 16, section 1, is amended by adding the following subsection:

Exception

(2.2)  Subsection (2.1) does not apply if the request to surrender registration or the proposal to wind up or dissolve is related to a purchase or sale referred to in section 27.1.

(3)  Section 27 of the Act, as amended by the Statutes of Ontario, 1994, chapter 17, section 90, 1997, chapter 43, Schedule C, sections 17 and 23, 1999, chapter 9, section 66 and 2004, chapter 16, section 1, is amended by adding the following subsection:

Repayment of grants, registration revoked

(3)  An Ontario commercialization investment fund whose registration is revoked by the Minister shall immediately pay to the Minister an amount of money equal to the total amount of all grants under Part III.2 received by the fund in respect of eligible investments made within the 48 months immediately preceding the date of revocation of registration.

(4)  Section 27 of the Act, as amended by the Statutes of Ontario, 1994, chapter 17, section 90, 1997, chapter 43, Schedule C, sections 17 and 23, 1999, chapter 9, section 66 and 2004, chapter 16, section 1, is amended by adding the following subsection:

Set-off

(9)  If an Ontario commercialization investment fund that is entitled to a grant under Part III.2 is liable or is about to become liable to make a payment to the Crown in right of Ontario, the Minister may apply all or part of the amount of the grant to that liability instead of paying the grant to the fund.

17.  (1)  Section 27.1 of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 67 and amended by 2002, chapter 22, section 28 and 2004, chapter 16, section 1, is repealed and the following substituted:

Notice of business combination

27.1  (1)  A labour sponsored investment fund corporation that has issued Class A shares shall notify the Minister in writing if it proposes to,

(a) amalgamate with another corporation;

(b) enter into an arrangement for the purchase of substantially all of the assets of another labour sponsored investment fund corporation; or

(c) enter into an arrangement for the sale to another labour sponsored investment fund corporation of substantially all of its assets.

Same

(2)  The notice must be given at least 30 days before the proposed amalgamation, purchase or sale and must be accompanied by such information and documents as the Minister may request.

Effect of amalgamation

(3)  The following rules apply for the purposes of this Act on an amalgamation of a labour sponsored investment fund corporation with another corporation:

1. The new corporation shall be deemed to be the same corporation as, and a continuation of, each predecessor corporation.

2. The new corporation shall be deemed to have been registered under Part III on the earliest date on which any of the predecessor corporations was registered under Part III.

3. The new corporation shall be deemed to have issued all Class A shares issued by a predecessor corporation for the amount of equity capital received by the predecessor corporation on the issue of those shares.

4. If a predecessor corporation was authorized to issue a class of shares to which subclause 14 (1) (c) (iii) applies, the new corporation shall be deemed to have received the Minister's approval to issue substantially similar shares at the time of the amalgamation.

5. Each of the new shares issued by the new corporation on the amalgamation in replacement of shares that were issued by a predecessor corporation shall be deemed to have been issued at the time that the predecessor corporation issued the replaced shares.

6. The new corporation shall be deemed to have made all the investments made by the predecessor corporations,

i. on the same date as the predecessor corporations made the investments, and

ii. at the same historic cost used by the predecessor corporations.

7. An eligible investment of a predecessor corporation that is in a research business under subsection 16.1 (2) or in a listed company or small business as defined in subsection 18.1 (1) shall be deemed to be an eligible investment of the new corporation of the same type.

Effect of purchase and sale

(4)  The following rules apply for the purposes of this Act on the purchase of all or substantially all of the assets of a labour sponsored investment fund corporation by another labour sponsored investment fund corporation:

1. The vendor shall not issue any Class A shares after the purchase.

2. The vendor shall surrender its registration within a reasonable amount of time after the purchase.

3. Each new share issued by the purchaser and received by a shareholder of the vendor in replacement of a share that was issued by the vendor shall be deemed to have been issued at the time that the vendor issued the replaced share.

4. If the vendor was authorized to issue a class of shares other than Class A shares and if the rights, privileges, restrictions and conditions attached to those shares were approved by the board of directors of the vendor and by the Ministry, the purchaser shall be deemed to have received the Ministry's approval to issue substantially similar shares as replacement shares.

5. The equity capital received by the purchaser on the issue of a Class A share in exchange for assets of the vendor shall be deemed to be the price of the assets at the time of the purchase, as negotiated between the purchaser and vendor, divided by the number of Class A shares issued in respect of the purchase.

6. The equity capital paid by the shareholder on the issue of a Class A share of the purchaser in exchange for a Class A share issued by the vendor shall be deemed to be the price of the Class A share of the purchaser at the time of the purchase.

7. Each investment of the vendor purchased by the purchaser that is an eligible investment at the time of the purchase shall be deemed to be an eligible investment of the purchaser.

8. An eligible investment of the vendor that is in a research business under subsection 16.1 (2) or in a listed company or small business as defined in subsection 18.1 (1) shall be deemed to be an eligible investment of the purchaser of the same type.

9. An investment by the vendor in an investment corporation registered under Part III.1 that is purchased by the purchaser shall be treated as if it had originally been made by the purchaser.

10. The cost of an eligible investment purchased by the purchaser shall be deemed to be the price of the eligible investment at the time of purchase, as negotiated between the purchaser and vendor.

Effect of certain types of non-compliance

(5)  The rules set out in subsection (6) apply,

(a) if, immediately after the amalgamation, the articles of the new corporation do not meet the requirements of clause 14 (1) (c), (d) or (f);

(b) if the new corporation does not comply with subsection 13 (1);

(c) if, immediately before the amalgamation, the registration of a predecessor corporation under this Act was revoked; or

(d) if the new corporation distributed any property other than its Class A shares to shareholders in exchange for Class A shares of a predecessor corporation.

Same

(6)  Subject to subsection (7), the following rules apply in any of the circumstances described in subsection (5):

1. The new corporation shall be deemed to have surrendered its registration under this Act immediately after the amalgamation.

2. The new corporation shall promptly pay to the Minister the amount of money that each predecessor corporation would have been required to pay under subsection 27 (2.1) if it had surrendered its registration under this Act immediately before the amalgamation.

Exception

(7)  The Minister may exempt a new corporation or a labour sponsored investment fund corporation from any rule in this section upon such conditions as he or she considers appropriate.

Definitions

(8)  In this section,

"new corporation" means the corporation that results from the amalgamation of a predecessor corporation and one or more other corporations; ("nouvelle société")

"predecessor corporation" means a corporation that is amalgamated and that is or was a labour sponsored investment fund corporation. ("société remplacée")

(2)  Section 27.1 of the Act, as re-enacted by subsection (1), is amended by adding the following subsection:

Regulations

(9)  The Minister may make regulations prescribing rules that apply,

(a) if an Ontario commercialization investment fund winds up or is involved in a corporate reorganization;

(b) if two or more Ontario commercialization investment funds are involved in a business combination;

(c) if the assets of an Ontario commercialization investment fund are purchased by another person.

18.  The Act is amended by adding the following section:

Disposition of eligible investment, repayment of grant

28.2  (1)  An Ontario commercialization investment fund that disposes of an eligible investment in respect of which a grant under section 18.16 was obtained shall pay to the Minister not later than the 31st day after the date of disposition an amount of money equal to 30 per cent of the lesser of,

(a) the original cost of the investment to the fund; and

(b) the fair market value of the investment at the time of the disposition.

Exception

(2)  Subsection (1) does not apply if the fund disposes of the eligible investment more than 365 days after the day on which it acquired the eligible investment.

Limit on grant recapture

(3)  The amount of money that an Ontario commercialization investment fund shall pay to the Minister under subsection (1) in respect of the disposition of an eligible investment shall not exceed the total of all Ontario commercialization investment fund grants that the fund received in the year of disposition or in any preceding year.

19.  (1)  Subsection 31 (1) of the Act, as amended by the Statutes of Ontario, 1997, chapter 43, Schedule C, sections 19 and 23, 1999, chapter 9, section 70 and 2004, chapter 16, section 1, is amended by striking out "or" at the end of clause (d) and by adding the following clauses:

(f) to make an order that a particular investment is not an eligible investment;

(g) to impose a penalty under subsection 18 (13);

(h) to order a labour sponsored investment fund corporation to cease issuing tax credit certificates; or

(i) to refuse to pay a grant under section 18.16.

(2)  Subsection 31 (4) of the Act, as amended by the Statutes of Ontario, 1997, chapter 19, section 11 and 2004, chapter 16, section 1, is repealed and the following substituted:

Notice of objection

(4)  A person or group served with a notice of proposal under subsection (1) or required to pay a tax under section 28 or 28.1 may serve on the Minister a notice of objection in duplicate in the form approved by the Minister setting out the reasons for the objection and all relevant facts.

Service

(4.1)  A notice of objection must be served on the Minister within 60 days after,

(a) the day of mailing of the proposal;

(b) the day when the Minister is deemed to have assessed the tax under section 28 or 28.1; or

(c) the day upon which the Minister has been deemed under subsection (3) to have refused registration.

Commencement

20.  (1)  Subject to subsections (2), (3) and (4), this Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

Same

(2)  Section 5 and subsections 16 (2) and 17 (1) shall be deemed to have come into force on May 18, 2004.

Same

(3)  Sections 8 and 11 shall be deemed to have come into force on January 1, 2004.

Same

(4)  Subsection 19 (2) shall be deemed to have come into force on November 2, 2004.

SCHEDULE 8
AMENDMENTS TO THE CO-OPERATIVE CORPORATIONS ACT

1.  (1)  The definition of "security" in subsection 1 (1) of the Co-operative Corporations Act is repealed and the following substituted:

"security" means any share of any class or series of shares or any debt obligation of a corporation; ("valeur mobilière")

(2)  Subsection 1 (1) of the Act, as amended by the Statutes of Ontario, 1992, chapter 19, section 1, 1994, chapter 17, section 1, 1997, chapter 28, section 34, 1999, chapter 6, section 14 and 2001, chapter 8, section 6, is amended by adding the following definition:

"series", in relation to shares, means a division of a class of shares; ("série")

2.  Clause 5 (3) (a) of the Act, as amended by the Statutes of Ontario, 2001, chapter 8, section 7, is amended by striking out "and" at the end of subclause (iv), by adding "and" at the end of subclause (v) and by adding the following subclause:

(vi) the authority of the directors to fix the number of shares in, and to determine the designations, preferences, rights, conditions, restrictions, limitations or prohibitions attaching to, a class of shares that may be issued in series;

3.  (1)  Subsection 25 (1) of the Act is amended by striking out "shares of more than one class" and substituting "shares of more than one class or series".

(2)  Subsection 25 (2) of the Act, as re-enacted by the Statutes of Ontario, 2001, chapter 8, section 10, is amended by striking out "class of shares" and substituting "class or series of shares".

(3)  Subsection 25 (3) of the Act is amended by striking out "the number of shares of each class" and substituting "the number of shares of each class or series".

4.  The Act is amended by adding the following section:

Preference shares in series

27.1  (1)  The articles, subject to such conditions and restrictions as may be prescribed and subject to the limitations set out in the articles,

(a) may authorize the issue of any class of preference shares in one or more series and may fix the number of shares in, and determine the designations, preferences, rights, conditions, restrictions, limitations and prohibitions attaching to the shares of, each series; and

(b) may, where the articles authorize the issue of any class of preference shares in one or more series, authorize the directors to fix the number of shares in, and to determine the designations, preferences, rights, conditions, restrictions, limitations and prohibitions attaching to the shares of each series.

Proportionate abatement

(2)  If any amount,

(a) of cumulative dividends, whether or not declared, or declared non-cumulative dividends; or

(b) payable on return of capital in the event of the liquidation, dissolution or winding-up of a co-operative,

in respect of shares of a series is not paid in full, the shares of the series shall participate rateably with the shares of all other series of the same class in respect of,

(c) all accumulated cumulative dividends, whether or not declared, and all declared non-cumulative dividends; or

(d) all amounts payable on return of capital in the event of the liquidation, dissolution or winding-up of the co-operative,

as the case may be.

No priority of shares of same class

(3)  No preferences, rights, conditions, restrictions, limitations or prohibitions attached to a series of preference shares authorized under this section shall confer upon the shares of a series a priority in respect of,

(a) dividends; or

(b) return of capital in the event of the liquidation, dissolution or winding-up of the co-operative,

over the shares of any other series of the same class.

Articles designating special shares

(4)  Where, in respect of a series of preference shares, the directors exercise the authority conferred on them, before the issue of shares of that series, the directors shall file with the Minister articles of amendment, in a form approved by the Superintendent, designating the series.

Certificate of amendment

(5)  Section 154 applies with respect to the articles of amendment referred to in subsection (4).

5.  Section 28 of the Act is repealed and the following substituted:

Equality of shares of a class

28.  Each share of a class shall be the same in all respects as every other share of that class, except as otherwise permitted by section 27.1.

6.  Section 29 of the Act is amended by striking out "the number of issued shares of each class" and substituting "the number of issued shares of each class or series".

7.  Section 30 of the Act is repealed and the following substituted:

Cancellation of par share

30.  (1)  If an issued share of a class or series is cancelled, the issued capital is decreased by an amount equal to the par value of the shares of that class or series.

Cancellation of fractions of shares

(2)  If a fraction of an issued share of a class or series is cancelled, the issued capital is decreased by an amount that bears the same proportion to the amount determined under subsection (1) that the fraction bears to a whole share of that class or series.

8.  (1)  Subsection 30.1 (1) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 17, section 7, is repealed and the following substituted:

Purchase and redemption of shares

(1)  A co-operative may purchase or redeem its shares only in accordance with this Act and the regulations and in accordance with its articles.

(2)  Clause 30.1 (3) (a) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 17, section 7, is amended by striking out "shares of a class of preference shares" and substituting "shares of a class or series of preference shares".

9.  Subsection 31 (1) of the Act is repealed and the following substituted:

Redemption of shares of a class of preference shares

(1)  If the articles provide that the shares of a class of preference shares are redeemable without the consent of the holders of the shares and if only part of the preference shares are to be redeemed, the shares to be redeemed shall be selected,

(a) by lot in the manner determined by the board of directors;

(b) as nearly as may be in proportion to the number of preference shares of the class that are registered in the name of each holder of shares of that class;

(c) in such other manner as the board of directors determines with the consent of the holders of preference shares of the class, obtained in the manner set out in subsection (3); or

(d) in such manner as may be authorized by regulation,

but the articles may confine the manner of selection to one or more of the methods referred to in clause (a), (b), (c) or (d).

Redemption of shares of a series of preference shares

(1.1)  If the articles provide that the shares of a series of preference shares are redeemable without the consent of the holders of the shares and if only part of the series of preference shares are to be redeemed, the shares to be redeemed shall be selected in such manner as may be prescribed by regulation.

10.  Subsection 34 (1) of the Act, as amended by the Statutes of Ontario, 1994, chapter 17, section 11 and 1997, chapter 28, section 35, is repealed and the following substituted:

Offering statement

(1)  No co-operative or person shall sell, dispose of or accept directly or indirectly any consideration for securities of the co-operative where the co-operative has more than the prescribed number of security holders, or where the sale or disposition of or acceptance of consideration for the securities would have the effect of increasing the number of security holders in the co-operative to more than the prescribed number, unless the co-operative has filed with the Superintendent an offering statement and has obtained a receipt for it.

11.  Clause 46 (1) (d) of the Act is repealed and the following substituted:

(d) if the certificate represents shares, the number and the class of shares, and the designation of any series, represented by the certificate and the par value of the shares;

12.  (1)  Subsection 47 (1) of the Act is repealed and the following substituted:

Contents of preference share certificate

(1)  A share certificate issued for a share of a class or series of preference shares shall,

(a) legibly state on the certificate or have attached to it a legible statement setting out,

(i) the preferences, rights, conditions, restrictions, limitations and prohibitions attaching to that class or to that series, and

(ii) the authority of the directors to fix the preferences, rights, conditions, restrictions, limitations or prohibitions attaching to subsequent series, if applicable; or

(b) legibly state on the certificate that there are preferences, rights, conditions, restrictions, limitations or prohibitions attaching to that class or series and that the co-operative will furnish to a shareholder, on demand and without charge, a full copy of the text of,

(i) the preferences, rights, conditions, restrictions, limitations and prohibitions attached to that share and to each class authorized to be issued and to each series in so far as the same have been fixed by the directors, and

(ii) the authority of the directors to fix the preferences, rights, conditions, restrictions, limitations and prohibitions of subsequent series, if applicable.

(2)  Subsection 47 (3) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 17, section 13, is amended by striking out "a class of preference shares" in the portion before clause (a) and substituting "a class or series of preference shares".

13.  (1)  Subsection 56 (2) of the Act is amended by striking out "shall mail a written notice" and substituting "shall send a written notice".

(2)  Subsection 56 (3) of the Act is amended by striking out "within thirty days from the date of mailing of the notice referred to in subsection (2)" in the portion before clause (a) and substituting "within 30 days after the date on which the notice is sent".

14.  Subsection 66 (5) of the Act is amended by striking out "seven or more days before the mailing of the notice of the meeting" and substituting "seven or more days before notice of the meeting is sent".

15.  Clause 75 (1) (a) of the Act is amended by striking out "by sending the notice by prepaid mail" and substituting "by sending the notice".

16.  Subsection 95 (2) of the Act is amended by striking out "by sending the notice by prepaid mail" and substituting "by sending the notice".

17.  Section 110 of the Act is repealed and the following substituted:

Indemnification of directors, officers, etc.

Definition of entity

110.  (1)  In this section,

"entity" means a corporation, a trust, a partnership, a fund or an unincorporated organization.

Conditions for indemnification

(2)  A co-operative may indemnify a director or officer of the co-operative, a former director or officer of the
co-operative or a person who acts or acted at the co-operative's request as a director or officer or a person acting in a similar capacity, of another entity, and his or her heirs and legal representatives, against all costs, charges and expenses, including an amount paid to settle an action or satisfy a judgment reasonably incurred by him or her in respect of any civil, criminal or administrative action or proceeding to which he or she is made a party by reason of being or having been a director or officer of the co-operative or of being or having been a director or officer, or acting or having acted in a similar capacity, of another entity, if,

(a) he or she acted honestly and in good faith with a view to the best interests of the co-operative or, as the case may be, to the best interests of the entity for which he or she acted as a director or officer or in a similar capacity at the co-operative's request; and

(b) in the case of a criminal or administrative action or proceeding that is enforced by a monetary penalty, he or she had reasonable grounds for believing that his or her conduct was lawful.

Indemnification re: court action

(3)  A co-operative may, with the approval of the court, indemnify a person referred to in subsection (2) in respect of an action by or on behalf of the co-operative or other entity to procure a judgment in its favour, to which the person is made a party because of that person's association with the co-operative or other entity as described in subsection (2), against all costs, charges and expenses reasonably incurred by the person in connection with such action if he or she fulfils the conditions set out in clauses (2) (a) and (b).

Indemnification re: civil or criminal action

(4)  Despite anything in this section, a person referred to in subsection (2) is entitled to indemnity from the co-operative in respect of all costs, charges and expenses reasonably incurred by the person in connection with the defence of any civil, criminal or administrative action or proceeding to which he or she is made a party because of that person's association with the co-operative or other entity as described in subsection (2), if the person seeking indemnity,

(a) was substantially successful on the merits in his or her defence of the action or proceeding; and

(b) fulfils the conditions set out in clauses (2) (a) and (b).

Insurance

(5)  A co-operative may purchase and maintain insurance for the benefit of any person referred to in subsection (2) against any liability incurred by the person,

(a) in his or her capacity as a director or officer of the co-operative, except where the liability relates to the person's failure to act honestly and in good faith with a view to the best interests of the co-operative; or

(b) in his or her capacity as a director or officer, or similar capacity, of another entity where the person acts or acted in that capacity at the co-operative's request, except where the liability relates to the person's failure to act honestly and in good faith with a view to the best interests of the other entity.

Application for court approval

(6)  A co-operative or a person referred to in subsection (2) may apply to the court for an order approving an indemnity under this section and the court may so order and make any further order it thinks fit.

Same

(7)  Upon an application under subsection (6), the court may order notice to be given to any interested person and such person is entitled to appear and be heard in person or by counsel.

Liability of directors for unlawful payment of indemnity

(8)  Directors of a co-operative who vote for or consent to a resolution authorizing a payment of indemnity contrary to this section are jointly and severally liable to restore to the co-operative any amounts so distributed or paid and not otherwise recovered by the co-operative.

18.  Subparagraph 3 i of section 114 of the Act is amended by striking out "the number and class of shares held by such holder" at the end and substituting "the number, class and series of shares held by such holder".

19.  (1)  Subsection 124 (5) of the Act is repealed and the following substituted:

Notice to auditor

(5)  Before calling a general meeting for the purpose specified in subsection (4), the co-operative shall give the following documents to the auditor at least 15 days before notice of the meeting is sent:

1. Written notice of the intention to call the meeting, specifying the proposed date for sending notice of the meeting.

2. A copy of all material proposed to be sent to members in connection with the meeting.

(2)  Subsection 124 (6) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Auditor's right to make representations

(6)  An auditor has the right to make written representations to the co-operative, at least three days before notice of the meeting is sent, concerning,

. . . . .

20.  (1)  Subsection 125 (1) of the Act is repealed and the following substituted:

Notice to auditor of proposal to appoint another

(1)  If, at an annual meeting of members, it is proposed that an auditor who is not the incumbent auditor be appointed, the co-operative shall give written notice to the incumbent auditor, at least 15 days before notice of the meeting is sent, that management intends not to recommend the reappointment of the incumbent auditor at the annual meeting and the written notice shall also specify the proposed date on which notice of the meeting is to be sent.

(2)  Subsection 125 (2) of the Act is amended by striking out "The incumbent auditor has the right to make to the co-operative, three days or more before the mailing of the notice of the meeting, representations in writing concerning" at the beginning and substituting "The incumbent auditor has the right to make written representations to the co-operative, at least three days before notice of the meeting is sent, concerning".

21.  Subsection 127 (5) of the Act is amended by striking out "the auditor shall mail such amended report to the members" at the end and substituting "the auditor shall send the amended report to the members".

22.  Subparagraph 2 ii of subsection 130 (3) of the Act is repealed and the following substituted:

ii. The amount of dividends declared on each class and series of shares.

23.  (1)  Paragraph 20 of subsection 133 (1) of the Act is repealed and the following substituted:

20. The authorized capital, giving the number of each class and series of shares and a brief description of each class and series and indicating any class or series that is redeemable and the redemption price.

(2)  Paragraph 21 of subsection 133 (1) of the Act is amended by striking out "the number of shares of each class issued and outstanding" in the portion before subparagraph i and substituting "the number of shares of each class and series issued and outstanding".

(3)  Subparagraph 21 i of subsection 133 (1) of the Act is amended by striking out "the number of shares of each class issued" at the beginning and substituting "the number of shares of each class and series issued".

24.  (1)  Paragraph 8 of subsection 134 (3) of the Act is repealed and the following substituted:

8. The gross amount of arrears of dividends on any class or series of shares and the date to which such dividends were last paid.

(2)  Paragraph 9 of subsection 134 (3) of the Act is amended by striking out "the class and number of shares affected" and substituting "the class and series and the number of shares affected".

25.  Section 140 of the Act is repealed and the following substituted:

Distribution of financial statement to members

140.  (1)  At least 10 days before the annual meeting of members, a co-operative shall send a copy of the financial statement and, subject to section 123, the auditor's report to each member at the member's latest address as shown on the records of the co-operative.

Same

(2)  The directors of a co-operative shall also send to each member a copy of any financial statement and auditor's report amended under subsection 127 (4) or (5).

Exception

(3)  Subsections (1) and (2) do not apply with respect to a member who has given written notice to the co-operative that the member does not wish to receive the financial statements and auditor's reports.

26.  (1)  Subsection 141 (1) of the Act, as amended by the Statutes of Ontario, 1997, chapter 28, section 37, is amended by striking out "that are required to be mailed by the co-operative to its members" at the end and substituting "that the co-operative is required to send to its members".

(2)  Subsection 141 (2) of the Act, as amended by the Statutes of Ontario, 1997, chapter 28, section 37, is amended by striking out "on the same date such statements are mailed or required to be mailed by the co-operative to its members, whichever is the earlier" at the end and substituting "on the same date that the co-operative sends them, or is required to send them, to its members, whichever is earlier".

27.  (1)  Clauses 151 (1) (h) and (i) of the Act are repealed and the following substituted:

(h) divide a class of shares, whether issued or unissued, into series and fix the number of shares in each series and the preferences, rights, conditions, restrictions, limitations and prohibitions attaching to the shares;

(h.1) authorize the directors to divide any class of unissued shares into series and fix the number of shares in each series and the preferences, rights, conditions, restrictions, limitations and prohibitions attaching to the shares;

(h.2) authorize the directors to change the preferences, rights, conditions, restrictions, limitations or prohibitions attaching to unissued shares of any series;

(h.3) revoke, diminish or enlarge any authority conferred on the directors under clause (h.1) or (h.2);

(i) redesignate any class or series of shares;

(i.1) reclassify any shares into a different class or series;

(2)  Section 151 of the Act, as amended by the Statutes of Ontario, 1992, chapter 19, section 20 and 1999, chapter 12, Schedule I, section 1, is amended by adding the following subsection:

Directors' authority to amend articles

(1.1)  If the directors are authorized by the articles to divide any class of unissued shares into series and determine the designations, preferences, rights, conditions, restrictions, limitations or prohibitions attaching to the shares, the directors may authorize an amendment to the articles to so provide.

(3)  Subsection 151 (2) of the Act is repealed and the following substituted:

Authorization

(2)  An amendment under subsection (1) shall be authorized by a special resolution and an amendment under subsection (1.1) may be authorized by a resolution of the directors.

(4)  Subsection 151 (4) of the Act, as re-enacted by the Statutes of Ontario, 1999, chapter 12, Schedule I, section 1, is repealed and the following substituted:

Additional authorization, preference shares

(4)  The rules set out in subsection (4.1) apply,

(a) if the amendment is to delete or vary a preference, right, condition, restriction, limitation or prohibition attaching to a class or series of preference shares; or

(b) if the amendment is to create preference shares ranking in any respect in priority to, or in parity with, any class or series of preference shares, other than a series authorized by section 27.1.

Same

(4.1)  The following rules apply in the circumstances described in subsection (4):

1. In addition to the confirmation required by subsection (2), the special resolution is not effective until it has been confirmed,

i. by at least two-thirds of the votes cast at a meeting of the holders of the affected class, classes or series of shares, duly called for the purpose, or by such greater proportion of the votes cast as the articles may provide, and

ii. by such additional authorization as the articles may provide.

2. The holders of a series of shares of a class are entitled to vote separately only if the series is affected by the amendment in a manner that is different from other shares of the same class.

28.  Subsection 151.1 (1) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 12, Schedule I, section 1, is amended by striking out "preference shares of any class" in the portion after clause (b) and substituting "preference shares of any class or series".

29.  (1)  Clauses 156 (2) (d) and (e) of the Act are repealed and the following substituted:

(d) the authorized capital of the amalgamated co-operative, the classes and series, if any, of shares into which it is to be divided, the number of shares of each class and series and the par value of each share;

(e) if there are to be preference shares, the designations, preferences, rights, conditions, restrictions, limitations and prohibitions attaching to them and to each series, in so far as they have been fixed by the directors;

(2)  Subsection 156 (6) of the Act is repealed and the following substituted:

Approval by holders of preference shares

(6)  An amalgamation agreement is not effective until it has been confirmed in the manner provided in subsections 151 (4) and (4.1), with necessary modifications, in addition to the approval required by subsection (5), if carrying out the amalgamation agreement would result in the deletion or variation of a preference, right, condition, restriction, limitation or prohibition attaching to a class or series of preference shares of any of the amalgamating co-operatives or in the creation of preference shares of the amalgamated co-operative ranking in any respect in priority to, or in parity with, any existing class or series of preference shares of any of the amalgamating co-operatives.

30.  (1)  Subsection 172 (1) of the Act is repealed and the following substituted:

Notices

Notice to members and directors

(1)  Subject to the articles or by-laws of a co-operative, a notice or other document required to be given or sent by the co-operative to a member or director,

(a) may be delivered personally or sent by mail to his or her latest address as shown on the records of the co-operative; or

(b) except in such circumstances as may be prescribed, may be sent electronically to him or her in accordance with the Electronic Commerce Act, 2000 and such conditions as may be prescribed under this Act.

Same

(1.1)  A notice or other document sent by mail by the co-operative to a member or director shall be deemed to be given or sent,

(a) for the purposes of subsections 56 (3), 66 (5), 124 (5) or (6), 125 (1) and 141 (2), on the date on which it is mailed; and

(b) in any other case and subject to the articles or by-laws of the co-operative, at the time when it would be delivered in the ordinary course of mail.

(2)  Section 172 of the Act is amended by adding the following subsection:

Notice from members and directors

(2.1)  Subject to the articles or by-laws of a co-operative, a notice or other document required to be given or sent by a member or director to the co-operative,

(a) may be delivered personally or sent by mail to the head office of the co-operative in accordance with subsection (3); or

(b) except in such circumstances as may be prescribed, may be sent electronically to the co-operative in accordance with the Electronic Commerce Act, 2000 and such conditions as may be prescribed under this Act.

31.  (1)  Clause 186 (a) of the Act, as amended by the Statutes of Ontario, 1994, chapter 17, section 29, is repealed and the following substituted:

(a) respecting names, objects, authorized capital, membership, the designations, preferences, rights, conditions, restrictions, limitations and prohibitions attaching to shares or classes or series of shares or any other matter pertaining to articles or the filing of articles;

(2)  Section 186 of the Act, as amended by the Statutes of Ontario, 1992, chapter 19, section 24, 1994, chapter 17, section 29, 1997, chapter 19, section 3 and 1997, chapter 28, section 49, is amended by adding the following clauses:

(a.2) prescribing, for the purposes of section 31, the manner by which preference shares issued in classes or in series may be redeemed;

(a.3) prescribing, for the purposes of section 34, the number of security holders;

. . . . .

(b.3) governing the electronic delivery of documents, including prescribing for the purposes of section 172 the circumstances in which a document shall not be sent electronically;

Commencement

32.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

Same

(2)  Sections 1 to 16 and 18 to 31 come into force on a day to be named by proclamation of the Lieutenant Governor.

SCHEDULE 9
AMENDMENTS TO THE CORPORATIONS TAX ACT

1.  Section 1 of the Corporations Tax Act, as amended by the Statutes of Ontario, 1992, chapter 3, section 1, 1994, chapter 14, section 1, 1996, chapter 1, Schedule B, section 1, 1996, chapter 29, section 36, 1997, chapter 19, section 4, 1997, chapter 43, Schedule A, section 1, 1998, chapter 34, section 26, 1999, chapter 9, section 72, 2000, chapter 42, section 10, 2001, chapter 23, section 20 and 2004, chapter 16, section 2, is amended by adding the following subsection:

Interpretation, gross revenue

(12)  For taxation years commencing after December 31, 2006, "gross revenue" as defined in subsection 248 (1) of the Income Tax Act (Canada) shall be read to include an amount determined under subsection 11.0.1 (3) of this Act.

2.  Section 11 of the Act, as amended by the Statutes of Ontario, 1992, chapter 3, section 2, 1994, chapter 14, section 4, 1996, chapter 29, section 37, 1997, chapter 43, Schedule A, section 5, 1998, chapter 34, section 28, 1999, chapter 9, section 75, 2000, chapter 10, section 1, 2001, chapter 8, section 19, 2001, chapter 23, section 22, 2002, chapter 22, section 38, 2003, chapter 7, section 1 and 2004, chapter 16, section 2, is amended by adding the following subsection:

Foreign non-business income tax

(12.1)  For the purposes of this Act, subsection 20 (12.1) of the Income Tax Act (Canada) does not apply to allow a deduction in computing the income of a corporation for a taxation year ending after December 31, 1997 except to the extent that the portion of the foreign non-business income tax paid by the corporation to which that subsection applies was not included in computing the corporation's non-business income tax for any taxation year under subsection 126 (4.1) of that Act.

3.  The Act is amended by adding the following section:

Deductions, resource corporations

11.0.1  (1)  For taxation years ending after December 31, 2002, paragraphs 12 (1) (o), (x.2) and (z.5), 18 (1) (m) and 20 (1) (v) of the Income Tax Act (Canada) do not apply in computing the income of a corporation from a business or property for the purposes of this Act and the provisions of this section apply instead.

Deduction not allowed

(2)  Despite paragraph 18 (1) (a) of the Income Tax Act (Canada), in computing the income of a corporation for taxation years ending after December 31, 2002 from a business or property, no deduction shall be made in respect of any tax on income levied by any province or territory in Canada for the year from mining operations other than a deduction prescribed by the regulations.

Income amounts, royalties, etc.

(3)  There shall be included in computing the income of a corporation for a taxation year ending after December 31, 2002 as income from a business or property any amount, other than an amount prescribed by the regulations and an amount referred to in subsection (5),

(a) that became receivable in the year by,

(i) Her Majesty in right of Canada or of a province,

(ii) an agent of Her Majesty in right of Canada or of a province, or

(iii) a corporation, commission or association that is controlled by Her Majesty in right of Canada or of a province or by an agent of Her Majesty in right of Canada or of a province; and

(b) that can reasonably be considered to be a royalty, tax (other than a tax or portion of a tax that can reasonably be considered to be a municipal or school tax), lease rental or bonus, however described, or to be in respect of the late receipt or non-receipt of any of those amounts, in relation to,

(i) the acquisition, development or ownership of a Canadian resource property of the corporation, or

(ii) the production in Canada,

(A) of petroleum, natural gas or related hydrocarbons from a natural accumulation of petroleum or natural gas (other than a mineral resource) located in Canada, or from an oil or gas well located in Canada, in respect of which the corporation had an interest,

(B) of sulphur from a natural accumulation of petroleum or natural gas located in Canada, from an oil or gas well located in Canada or from a mineral resource located in Canada, in respect of which the corporation had an interest,

(C) to any stage that is not beyond the prime metal stage or its equivalent, of metal, minerals (other than iron or petroleum or related hydrocarbons) or coal from a mineral resource located in Canada in respect of which the corporation had an interest,

(D) to any stage that is not beyond the pellet stage or its equivalent, of iron from a mineral resource located in Canada in respect of which the corporation had an interest, or

(E) to any stage that is not beyond the crude oil stage or its equivalent, of petroleum or related hydrocarbons from a deposit located in Canada of bituminous sands or oil shales in respect of which the corporation had an interest.

Same

(4)  There shall be included in computing the income of a corporation for a taxation year ending after December 31, 2002 as income from a business or property 25 per cent of the corporation's prescribed resource loss for the year.

Royalties

(5)  In computing the income of a corporation from a business or property for a taxation year ending after December 31, 2002, no deduction shall be made in respect of any amount, other than an amount prescribed by the regulations,

(a) that is paid or payable in the year to,

(i) Her Majesty in right of Canada or of a province,

(ii) an agent of Her Majesty in right of Canada or of a province, or

(iii) a corporation, a commission or an association that is controlled by Her Majesty in right of Canada or of a province or by an agent of Her Majesty in right of Canada or of a province; and

(b) that can reasonably be considered to be a royalty, tax (other than a tax or portion of a tax that can reasonably be considered to be a municipal or school tax), lease rental or bonus, however described, or to be in respect of the late payment or non-payment of any of those amounts, in relation to,

(i) the acquisition, development or ownership of a Canadian resource property, or

(ii) the production in Canada,

(A) of petroleum, natural gas or related hydrocarbons from a natural accumulation of petroleum or natural gas (other than a mineral resource) located in Canada, or from an oil or gas well located in Canada,

(B) of sulphur from a natural accumulation of petroleum or natural gas located in Canada, from an oil or gas well located in Canada or from a mineral resource located in Canada,

(C) to any stage that is not beyond the prime metal stage or its equivalent, of metal, minerals (other than iron or petroleum or related hydrocarbons) or coal from a mineral resource located in Canada,

(D) to any stage that is not beyond the pellet stage or its equivalent, of iron from a mineral resource located in Canada, or

(E) to any stage that is not beyond the crude oil stage or its equivalent, of petroleum or related hydrocarbons from a deposit located in Canada of bituminous sands or oil shales.

4.  (1)  Clause 13.2 (2) (a) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 34, section 30 and amended by 2004, chapter 16, section 2, is amended by striking out the portion before subclause (i) and substituting the following:

(a) all capital costs in respect of expenditures incurred by the corporation after May 5, 1998 and before January 1, 2005,

. . . . .

(2)  Clause 13.2 (2) (b) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 34, section 30 and amended by 2004, chapter 16, section 2, is amended by striking out "after May 5, 1998" in the portion before subclause (i) and substituting "after May 5, 1998 and before January 1, 2005".

5.  (1)  Paragraph 1 of subsection 13.3 (2) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 34, section 31 and amended by 2004, chapter 16, section 2, is amended by striking out "after July 1, 1998 and in the taxation year" and substituting "in the taxation year, but after July 1, 1998 and before January 1, 2005".

(2)  Subsection 13.3 (6) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 34, section 31 and amended by 2004, chapter 16, section 2, is amended by striking out "after July 1, 1998" in the portion before paragraph 1 and substituting "after July 1, 1998 and before January 1, 2005".

6.  (1)  Subsection 13.5 (2) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 12 and amended by 2004, chapter 16, section 2, is amended by striking out "and after May 2, 2000" at the end and substituting "but after May 2, 2000 and before January 1, 2005".

(2)  Section 13.5 of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 12 and amended by 2002, chapter 8, Schedule P, section 2 and 2004, chapter 16, section 2, is amended by adding the following subsection:

Transitional rule for licences, 2004

(3.1)  In determining, for the purposes of subsection (3), a corporation's notional price for technology that is licensed to an institution pursuant to a licence granted before January 1, 2005, the following rules apply:

1. If clause (a) of the definition of "notional price" in subsection (1) applies in respect of the corporation and the amount that the corporation normally would have charged for the grant of the licence would require more than one payment by a customer, the corporation's notional price for the technology for the purposes of this section shall not include any amount that would have been paid or payable by a customer after December 31, 2004.

2. If clause (a) of the definition of "notional price" in subsection (1) applies in respect of the corporation and the amount that the corporation normally would have charged for the grant of the licence would require that a single payment be made by a customer, the corporation's notional price for the technology for the purposes of this section shall be nil unless the single amount would have been paid or payable by a customer on or before December 31, 2004.

3. If clause (b) of the definition of "notional price" in subsection (1) applies in respect of the corporation, the corporation's notional price for the technology for the purposes of this section shall not include any amount that would be paid or payable by the corporation after December 31, 2004.

7.  (1)  Section 13.6 of the Act, as enacted by the Statutes of Ontario, 2002, chapter 23, section 2 and amended by 2004, chapter 16, section 2 and 2004, chapter 23, Schedule C, section 2, is repealed.

(2)  Despite subsection 13.6 (1) of the Act, as it read before this section comes into force, no corporation is entitled to a deduction under section 13.6 of the Act, as it read before this section comes into force, in respect of any income earned after November 25, 2002 from the sale of electricity.

8.  Clause 14 (5) (e) of the Act, as amended by the Statutes of Ontario, 1992, chapter 3, section 5, 1998, chapter 5, section 8, 1998, chapter 34, section 32, 1999, chapter 9, section 79, 2000, chapter 42, section 13 and 2004, chapter 16, section 2, is amended by striking out "and" at the end of subclause (i) and by adding the following subclauses:

(iii) for taxation years ending after December 31, 2002, clause 53 (1) (e) (i) (B) of the Income Tax Act (Canada) shall be deemed to read as follows:

(B) subsections 11.0.1 (3), (4) and (5) and clause 11 (10) (b) of this Act and paragraphs 29 (1) (b) and (2) (b) and 53 (1) (i), section 55, subsections 69 (6) and (7) and paragraph 82 (1) (b) of the Income Tax Act (Canada) and paragraphs 20 (1) (gg) and 81 (1) (r) and (s) of the Income Tax Act, Revised Statutes of Canada, 1952, chapter 148 and the provisions of the Income Tax Application Rules, 1971 (Canada) relating to income from the operation of new mines, and

(iv) for taxation years ending after December 31, 2002, clause 53 (2) (c) (i) (B) of the Income Tax Act (Canada) shall be deemed to read as follows:

(B) subsections 11.0.1 (3), (4) and (5) and clause 11 (10) (b) of this Act and section 31, subsection 40 (2), section 55 and subsections 69 (6) and (7) of the Income Tax Act (Canada) and paragraphs 20 (1) (gg) and 81 (1) (r) and (s) of the Income Tax Act, Revised Statutes of Canada, 1952, chapter 148,

9.  Clause (c) of the definition of "Canadian exploration and development expenses" in subsection 18 (15) of the Act, as amended by the Statutes of Ontario, 2004, chapter 16, section 2, is repealed and the following substituted:

(c) despite paragraph 18 (1) (m) of the Income Tax Act (Canada), as that paragraph applies to this Act for a taxation year ending before January 1, 2003 by virtue of subsection 11 (1) of this Act, the cost to the corporation of a Canadian resource property, but for greater certainty not including any payment made to any of the persons referred to in any of the subparagraphs (i) to (iii) of the said paragraph (m) for the preservation of a person's rights in respect of a Canadian resource property or a property that would have been a Canadian resource property if it had been acquired by the corporation after 1971, and not including a payment to which the said paragraph (m) applied by virtue of subparagraph (v) thereof,

(c.1) despite subsection 11.0.1 (5) of this Act, for taxation years ending after December 31, 2002, the cost to the corporation of a Canadian resource property, but for greater certainty not including any payment made to any of the persons referred to in clause 11.0.1 (5) (a) for the preservation of a person's rights in respect of a Canadian resource property or a property that would have been a Canadian resource property if it had been acquired by the corporation after 1971, and not including a payment to which subsection 11.0.1 (5) applies by virtue of subclause 11.0.1 (5) (b) (ii),

10.  Section 19 of the Act, as amended by the Statutes of Ontario, 2004, chapter 16, section 2, is amended by adding the following subsections:

Taxation years after 2002

(2)  Despite subsection (1), paragraph (e) of the definition of "Canadian development expense" in subsection 66.2 (5) of the Income Tax Act (Canada) shall be deemed to refer to section 11.0.1 of this Act and shall be read as follows for the purposes of the application of that definition for taxation years ending after December 31, 2002:

(e) despite subsection 11.0.1 (5), for taxation years ending after December 31, 2002, the cost to the corporation of, including any payment for the preservation of a corporation's rights in respect of, any property described in paragraph (b), (e) or (f) of the definition of "Canadian resource property" in subsection 66 (15) of the Income Tax Act (Canada) or any right to or interest in such property (other than such a right or an interest that the corporation has by reason of being a beneficiary under a trust or a member of a partnership) but not including any payment made to any of the persons referred to in clause 11.0.1 (5) (a) for the preservation of a corporation's rights in respect of a Canadian resource property nor a payment to which subsection 11.0.1 (5) applied because of subclause 11.0.1 (5) (b) (ii).

Same

(3)  Despite subsection (1), paragraph (a) of the definition of "Canadian oil and gas property expense" in subsection 66.4 (5) of the Income Tax Act (Canada) shall be deemed to refer to section 11.0.1 of the Act and shall be read as follows for the purposes of the application of that definition for taxation years ending after December 31, 2002:

(a) despite subsection 11.0.1 (5), for taxation years ending after December 31, 2002, the cost to the corporation of, including any payment for the preservation of a corporation's rights in respect of, any property described in paragraph (a), (c) or (d) of the definition of "Canadian resource property" in subsection 66 (15) of the Income Tax Act (Canada) or any right to or interest in such property (other than such a right or an interest that the corporation has by reason of being a beneficiary under a trust or a member of a partnership) or an amount paid or payable to Her Majesty in right of the Province of Saskatchewan as a net royalty payment pursuant to a net royalty petroleum and natural gas lease that was in effect on March 31, 1977 to the extent that it can reasonably be regarded as a cost of acquiring the lease, but not including any payment made to any of the persons referred to in clause 11.0.1 (5) (a) for the preservation of a corporation's rights in respect of a Canadian resource property nor a payment (other than a net royalty payment referred to in this paragraph) to which subsection 11.0.1 (5) applied because of subclause 11.0.1 (5) (b) (ii).

11.  Section 22 of the Act, as amended by the Statutes of Ontario, 2004, chapter 16, section 2, is amended by striking out "clause 19 (b)" and substituting "clause 19 (1) (b)".

12.  Section 26 of the Act, as amended by the Statutes of Ontario, 1992, chapter 3, section 6, 1996, chapter 29, section 44 and 2004, chapter 16, section 2, is amended by adding the following subsections:

Disposition of petroleum, etc.

(4.1)  Where a corporation is an operator with respect to a natural accumulation of petroleum or natural gas in Canada, an oil or gas well in Canada or a mineral resource in Canada and at any time in a taxation year beginning after December 31, 2006 disposes of or acquires property produced in the operation that is petroleum, natural gas or related hydrocarbons or metal or minerals produced in the operation, the rules prescribed by the regulations apply to determine the amount of the proceeds of disposition deemed to be received by the corporation or the cost to the corporation of the property.

. . . . .

Resource royalties, reimbursement by corporation

(6)  The rules set out in subsection (7) apply for the purposes of this Act, other than this section, where for taxation years beginning after December 31, 2006,

(a) a corporation, under the terms of a contract, pays to another person an amount (in this subsection referred to as the "specified payment") that may reasonably be considered to have been received by the other person as a reimbursement, contribution or allowance in respect of an amount (referred to in clause (b) as the "particular amount") paid or payable by the other person;

(b) the particular amount is included in the income of the other person or is denied as a deduction in computing the income of the other person by reason of subsection 11.0.1 (3) or (5), as the case may be; and

(c) the corporation was resident in Canada or carrying on business in Canada at the time the specified payment was made by the corporation.

Same

(7)  The following are the rules for the purposes of subsection (6):

1. The corporation shall be deemed neither to have made nor to have become obligated to make the specified payment to the other person but to have paid an amount described in subsection 11.0.1 (5) equal to the amount of the specified payment.

2. The other person shall be deemed neither to have received nor to have become entitled to receive the specified payment from the corporation.

13.  Section 31 of the Act, as amended by the Statutes of Ontario, 1992, chapter 3, section 7, 1997, chapter 43, Schedule A, section 12, 1998, chapter 34, section 34, 2001, chapter 23, section 27 and 2004, chapter 16, section 2, is amended by adding the following subsection:

Same, taxation years ending after 2002

(3.1)  In the application of subsection 96 (1) of the Income Tax Act (Canada) for the purposes of this Act for a taxation year ending after December 31, 2002, subparagraphs 96 (1) (d) (i) and (ii) of that Act do not apply and, where a corporation is a member of a partnership, the corporation's income, non-capital loss, net capital loss, restricted farm loss and farm loss, if any, for a taxation year, or the corporation's taxable income earned in Canada for a taxation year, as the case may be, shall be computed as if each income or loss of the partnership for a taxation year were computed,

(a) as if this Act were read without reference to,

(i) clause 11 (10) (b) and subsection 11.0.1 (4) of this Act, and

(ii) section 34.1, subsection 59 (1), paragraph 59 (3.2) (c.1) and subsections 66.1 (1), 66.2 (1) and 66.4 (1) of the Income Tax Act (Canada), as made applicable for the purposes of this Act;

(b) as if no deduction were permitted under any of section 29 of the Income Tax Application Rules, subsections 34.2 (4) and 65 (1) and sections 66, 66.1, 66.2, 66.21 and 66.4 of the Income Tax Act (Canada), as made applicable for the purposes of this Act; and

(c) as if the modifications described in clauses (3) (a), (b) and (c) applied.

14.  The definition of "Authority" in subsection 37.1 (1) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 40 and amended by 2004, chapter 16, section 2, is repealed and the following substituted:

"Authority" means the Ontario Strategic Infrastructure Financing Authority continued under subsection 2 (1) of the Ontario Strategic Infrastructure Financing Authority Act, 2002; ("Office")

15.  (1)  Subsection 41 (3.1) of the Act, as enacted by the Statutes of Ontario, 1996, chapter 1, Schedule B, section 5 and amended by 2004, chapter 16, section 2, is repealed and the following substituted:

Business limit

(3.1)  For the purposes of this section and subsection 43 (4), the amount of the corporation's business limit for the taxation year under paragraph 125 (1) (c) of the Income Tax Act (Canada) shall be determined without reference to subsection 125 (5.1) of that Act.

(2)  Subsection 41 (3.2) of the Act, as re-enacted by the Statutes of Ontario, 2003, chapter 7, section 3 and amended by 2004, chapter 16, section 2, is amended by striking out the portion before clause (a) and substituting the following:

Application of certain federal provisions

(3.2)  In applying subsections 125 (2) and (3) of the Income Tax Act (Canada) to determine a corporation's business limit under paragraph 125 (1) (c) of that Act for the purposes of this section and subsection 43 (4) for a taxation year, the dollar amount set out in subsections 125 (2) and (3) of the Income Tax Act (Canada) shall be read as a reference to the total of,

. . . . .

(3)  Subsection 41 (4) of the Act, as amended by the Statutes of Ontario, 2004, chapter 16, section 2, is repealed and the following substituted:

Ontario small business allocation factor

(4)  For the purposes of this section, the Ontario small business allocation factor for the taxation year is the ratio of "A" to "B" where,

"A" is the amount of that portion of the corporation's taxable income for the taxation year that is determined to have been earned in Ontario under the rules referred to in the definition of "taxable income earned in the year in a province" in subsection 124 (4) of the Income Tax Act (Canada), and

"B" is the total amount of the portions of the corporation's taxable income for the taxation year that are determined to have been earned in provinces of Canada, under the rules referred to in the definition of "taxable income earned in the year in a province" in subsection 124 (4) of the Income Tax Act (Canada).

16.  Clause 43 (4) (a) of the Act, as enacted by the Statutes of Ontario, 1992, chapter 3, section 10 and amended by 2004, chapter 16, section 2, is repealed and the following substituted:

(a) the least of the amounts determined in respect of the corporation for the taxation year under paragraphs 125 (1) (a), (b) and (c) of the Income Tax Act (Canada), as modified by section 41 of this Act,

17.  (1)  Paragraph 4 of subsection 43.1 (4) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 45 and amended by 2004, chapter 16, section 2, is amended by striking out "the rules in subsection 142.7 (12) of the Income Tax Act (Canada) apply" and substituting "the conditions described in paragraphs 142.7 (12) (a) and (b) of the Income Tax Act (Canada) apply".

(2)  Subsection 43.1 (4) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 14, section 17 and amended by 2002, chapter 22, section 45 and 2004, chapter 16, section 2, is amended by adding the following paragraphs:

5. Paragraph 4 does not apply unless,

i. before the later of the date determined under paragraph 142.7 (11) (b) of the Income Tax Act (Canada) and the day that is 180 days after the day the Budget Measures Act (Fall), 2004 receives Royal Assent,

A. the entrant bank and the Canadian affiliate jointly elect that paragraph 4 applies, if the Canadian affiliate has not been wound up or dissolved before the election is made, or

B. the entrant bank elects that paragraph 4 applies, if the Canadian affiliate has been wound up or dissolved and has ceased to exist before the election is made, or

ii. the entrant bank and the Canadian affiliate have jointly elected under paragraph 142.7 (12) (c) of the Income Tax Act (Canada) to have section 142.7 of that Act apply.

6. Paragraph 4 applies only to,

i. taxation years for which an election by the affiliate and bank under paragraph 142.7 (12) (c) of the Income Tax Act (Canada) applies or to which section 142.7 of the Income Tax Act (Canada) would have applied if an election had been made under paragraph 142.7 (12) (c) of that Act, and

ii. preceding taxation years in which a credit under this section was earned.

18.  Subsection 43.4 (11) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule A, section 18 and amended by 2004, chapter 16, section 2, is repealed and the following substituted:

Regulations

(11)  The Minister may make regulations,

(a) prescribing the method of calculating the amount of salaries or wages that shall be deemed to be paid by a corporation in a previous taxation year for purposes of subsection (3.1);

(b) prescribing the criteria that must be satisfied for a work placement commencing after January 19, 2004 to be a qualifying work placement;

(c) prescribing rules for determining the amount of eligible expenditures for qualifying work placements commencing after January 19, 2004.

Retroactive

(12)  A regulation made under subsection (11) is, if it so provides, effective with reference to any period after this section came into force.

19.  (1)  Clause 43.6 (10) (a) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule A, section 20 and amended by 2004, chapter 16, section 2, is repealed and the following substituted:

(a) the employment commenced after May 6, 1997 but before July 6, 2004 and continued for at least six consecutive months;

(a.1) during the six-month period referred to in clause (a), the employee was required to work an average of more than 24 hours a week; and

(2)  Subsection 43.6 (11) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule A, section 20 and amended by 2004, chapter 16, section 2, is amended by striking out the portion before clause (a) and substituting the following:

Eligible expenditures

(11)  A corporation's eligible expenditures in respect of a qualifying employment are the amounts that are paid or payable before January 1, 2005 to the employee as salary or wages during the 12-month period commencing on the first day of the qualifying employment and that,

. . . . .

20.  (1)  Clause 43.7 (13) (i) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule A, section 21 and amended by 2004, chapter 16, section 2, is repealed and the following substituted:

(i) the corporation published fewer than two books during the 12-month period immediately before the taxation year for which the credit under this section is claimed;

(2)  Section 43.7 of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule A, section 21 and amended by 1998, chapter 5, section 15, 2000, chapter 42, section 17 and 2004, chapter 16, section 2, is amended by adding the following subsections:

Corporate reorganizations

(15.1)  Subsection (15.2) applies if, after December 31, 2001, one of the following events occurs:

1. An Ontario book publishing company (the "transferor") transfers all or part of its business to another corporation (the "transferee") in accordance with subsection 85 (1) of the Income Tax Act (Canada).

2. A corporation (the "transferee") is formed as the result of an amalgamation of an Ontario book publishing company (the "transferor") with one or more other corporations in accordance with section 87 of the Income Tax Act (Canada).

3. An Ontario book publishing company (the "transferor") is wound up in accordance with subsection 88 (1) of the Income Tax Act (Canada) and its assets and liabilities, if any, are transferred to its parent corporation (the "transferee").

Continuation of corporation

(15.2)  If one of the conditions described in subsection (15.1) is satisfied, the following rules apply:

1. For the purposes of subsections (3), (8) and (14), the transferee shall be deemed to be the same corporation as, and a continuation of, the transferor with respect to an eligible literary work or the right to publish an eligible literary work that is transferred to the transferee under paragraph 1, 2 or 3 of subsection (15.1) and any credit previously claimed under this section by the transferor in a taxation year in respect of the eligible literary work shall be deemed to have been claimed by the transferee in that previous taxation year.

2. For the purposes of subsections (3), (8) and (14), the transferor ceases, immediately after the eligible literary work is transferred under paragraph 1, 2 or 3 of subsection (15.1) to be an Ontario book publishing company in respect of the eligible literary work or the right to publish the eligible literary work.

3. For the purpose of clause (13) (i), any books published by the transferor in the 12-month period immediately preceding the taxation year in which the event described in paragraph 1, 2 or 3 of subsection (15.1) occurs shall be deemed to have been published by the transferor and the transferee.

(3)  The definition of "government assistance" in subsection 43.7 (16) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule A, section 21 and amended by 2004, chapter 16, section 2, is repealed and the following substituted:

"government assistance" means assistance from a government, municipality or other public authority in any form, including a grant, subsidy, forgivable loan, deduction from tax and investment allowance, but does not include,

(a) an Ontario book publishing tax credit under this section, or

(b) a grant that is not specific to a particular eligible literary work; ("aide gouvernementale")

21.  (1)  Subsection 43.9 (3) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule A, section 23 and amended by 2004, chapter 16, section 2, is repealed and the following substituted:

Amount of tax credit

(3)  Subject to subsection (20), the amount of a qualifying corporation's Ontario business-research institute tax credit for a taxation year is the sum of all amounts, each of which is in respect of an eligible contract and is equal to 20 per cent of the amount calculated using the formula,

in which,

"A" is the total of all qualified expenditures incurred during the taxation year and after May 6, 1997 under the contract by the corporation, to the extent that no tax credit has been claimed under this section for a prior taxation year in respect of the qualified expenditures,

"B" is the number of days in the taxation year after May 6, 1997 that the corporation is not connected to the eligible research institute that entered into the eligible contract or to any other eligible research institute that carries out the scientific research and experimental development that is to be performed under the contract, and

"C" is the number of days in the taxation year after May 6, 1997.

(2)  Subsection 43.9 (4) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule A, section 23 and amended by 2004, chapter 16, section 2, is amended by adding "and" at the end of clause (a) and by striking out clauses (b), (c) and (d) and substituting the following:

(b) the corporation or a partnership of which it is a member, but not a specified member, entered into the contract with the eligible research institute.

(3)  Subsection 43.9 (5) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule A, section 23 and amended by 2004, chapter 16, section 2, is amended by striking out the portion before clause (a) and substituting the following:

Corporation connected to an eligible research institute

(5)  For the purposes of this section, a corporation is connected to an eligible research institute at any time during a taxation year of the corporation if at that time,

. . . . .

(4)  Section 43.9 of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule A, section 23 and amended by 2004, chapter 16, section 2, is amended by adding the following subsections:

Same, taxation years ending before March 28, 2003

(25.1)  Subsections (25.2) and (25.3) apply to a corporation that is entitled to a deduction under subsection (1) or (2) for a taxation year ending before March 28, 2003 if,

(a) the corporation was connected to an eligible research institute at any time during the term of the eligible contract and before March 28, 2003; or

(b) an employee of the eligible research institute was connected to the corporation at any time during the preceding taxation year, but was not connected to the corporation at any time during the taxation year.

Same

(25.2)  For the purposes of calculating interest under subsection 79 (1) or (4), 82 (4) or 83 (1), the deduction under subsection (1) or (2) from tax otherwise payable for the taxation year and the payment under subsection (24) on account of tax otherwise payable for the taxation year shall be deemed to have been made on the later of,

(a) March 28, 2003; and

(b) the day the notice of assessment for the taxation year is issued by the Minister allowing the deduction from tax otherwise payable.

Same

(25.3)  In the circumstances described in clause (25.1) (b), subsection (25.2) applies only to the portion of the Ontario business-research institute tax credit that relates to the salary or wages of that employee.

(5)  Subsection 43.9 (26) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule A, section 23 and amended by 2004, chapter 16, section 2, is amended by striking out the portion before clause (a) and substituting the following:

When employee connected to corporation

(26)  For the purposes of this section, if an eligible research institute and a corporation have entered into an eligible contract, an employee of the eligible research institute is connected to the corporation in a taxation year if, at any time in the taxation year of the corporation,

. . . . .

22.  The Act is amended by adding the following section:

Apprenticeship training tax credit

43.13  (1)  A corporation that complies with the requirements of this section may deduct from its tax otherwise payable under this Part for a taxation year, after making all deductions claimed under sections 39 to 41, 43 and 43.3 to 43.12 for the taxation year, an amount not exceeding the amount of its apprenticeship training tax credit for the taxation year.

Same

(2)  A corporation that complies with the requirements of this section may deduct from its tax otherwise payable for the year under Parts III and IV an amount not exceeding the amount by which its apprenticeship training tax credit for the taxation year exceeds the maximum amount, if any, deductible by the corporation for the year under subsection (1).

Amount of tax credit

(3)  The amount of a corporation's apprenticeship training tax credit for a taxation year is the total of all amounts each of which is in respect of a qualifying apprenticeship in the taxation year and each of which is the total of "A" and "B" where,

"A" is the lesser of,

(a) the product obtained by multiplying the corporation's specified percentage for the taxation year by the corporation's eligible expenditures made during the taxation year in respect of the qualifying apprenticeship, and

(b) the amount calculated using the formula,

$5,000 × C/D

in which,

"C" is the total number of days after May 18, 2004 and before January 1, 2011 that the apprentice was employed by the corporation during the taxation year, and

"D" is 365 days or, if the taxation year includes February 29, 366 days, and

"B" is an amount calculated by multiplying the amount of government assistance repaid by the corporation in the taxation year by the corporation's specified percentage for the taxation year in which the government assistance was received, to the extent that the repayment does not exceed the amount of the government assistance in respect of the qualifying apprenticeship that,

(a) has not been repaid in a prior year, and

(b) can reasonably be considered to have reduced the amount of the apprenticeship training tax credit that would otherwise have been allowed to the corporation under this section in respect of the qualifying apprenticeship.

Specified percentage

(4)  A corporation's specified percentage for a taxation year is the following:

1. 25 per cent if the total of all salaries or wages paid by the corporation in the previous taxation year is $600,000 or more.

2. The percentage determined under subsection (5) if the total of all salaries or wages paid by the corporation in the previous taxation year is greater than $400,000 but less than $600,000.

3. 30 per cent in any other case.

Same

(5)  The percentage referred to in paragraph 2 of subsection (4) is calculated by adding 25 per cent and the percentage calculated using the formula,

5% × [1 - (E/200,000)]

in which,

"E" is the total amount of salaries and wages paid by the corporation in the previous taxation year that is in excess of $400,000.

Same, amount of salaries and wages

(6)  For the purposes of subsections (4) and (5), the amount of salaries and wages paid by a corporation in a previous taxation year shall be deemed to be the amount that would be calculated,

(a) if the rules set out in subsections 87 (1.2) and (1.4) of the Income Tax Act (Canada) applied; and

(b) if no amount is included in respect of salaries and wages paid by any partnership of which the corporation was a member at any time during the taxation year.

Qualifying apprenticeship

(7)  For the purposes of this section, a qualifying apprenticeship is an apprenticeship in respect of which all of the following conditions and such other conditions as may be prescribed by the Minister are satisfied:

1. The apprentice's employment with the corporation commenced before January 1, 2008.

2. The apprenticeship is in a qualifying skilled trade in the opinion of the Minister of Training, Colleges and Universities or a person designated by him or her.

3. The corporation, or the corporation acting through a union or a local or joint apprenticeship committee, and the apprentice are participating in an apprenticeship program,

i. in which the training agreement has been registered under the Apprenticeship and Certification Act, 1998 by the Director of Apprenticeship or a person designated by him or her, or

ii. in which the contract of apprenticeship has been registered under the Trades Qualification and Apprenticeship Act by the Minister of Training, Colleges and Universities or a person designated by him or her.

End of apprenticeship

(8)  For the purposes of this section, a qualifying apprenticeship shall be deemed to end on the earlier of the date on which the apprentice is entitled to receive the appropriate certificate under the Apprenticeship and Certification Act, 1998 or the Trades Qualification and Apprenticeship Act or the date, if any, on which the training agreement or contract of apprenticeship is cancelled, suspended or revoked by the Ministry of Training, Colleges and Universities.

Eligible expenditures

(9)  Subject to subsections (12) and (13), the amount paid by a corporation to an apprentice in respect of a qualifying apprenticeship is an eligible expenditure for a taxation year if all of the following conditions are satisfied:

1. The expenditure is required, for the purposes of Part III of Regulation 183 of the Revised Regulations of Ontario, 1990 (General) made under this Act, to be included in the amount of salary or wages paid to employees of a permanent establishment of the corporation in Ontario.

2. Subdivision a of Division B of Part I of the Income Tax Act (Canada) requires the amount paid to the apprentice to be included in the apprentice's income from a source that is an office or employment.

3. The expenditure is in respect of a qualifying apprenticeship and is paid or payable for services performed by the apprentice for the corporation after May 18, 2004 and before January 1, 2011.

4. The expenditure relates to services provided by the apprentice to the corporation during the first 36 months of the apprenticeship program and does not relate to services performed before the commencement or after the end of the apprenticeship program.

Interpretation

(10)  For the purposes of paragraph 4 of subsection (9), an apprenticeship program is deemed to commence on the date that the training agreement or contract of apprenticeship is registered with the Ministry of Training, Colleges and Universities.

Other eligible expenditures

(11)  Subject to subsections (12) and (13), such other expenditures as may be prescribed are eligible expenditures of a corporation for a taxation year if the prescribed conditions are satisfied.

Exception

(12)  An expenditure made by a corporation in respect of a qualifying apprenticeship is not an eligible expenditure,

(a) if the apprentice serves the apprenticeship with a person other than the corporation; or

(b) to the extent that the amount of the expenditure would not be considered to be reasonable in the circumstances by persons dealing with each other at arm's length.

Total eligible expenditures

(13)  For the purposes of this section, the total of eligible expenditures made by a corporation in respect of a qualifying apprenticeship in a taxation year is calculated using the formula,

F - G

in which,

"F" is the sum of the amounts determined under subsections (9) and (11), and

"G" is the amount of all government assistance, if any, that the corporation has received, is entitled to receive or may reasonably be expected to be entitled to receive in respect of the eligible expenditures at the time the corporation's return for the taxation year is required to be delivered under this Act.

Corporate partner

(14)  If a corporation is a member of a partnership and the partnership would qualify in a particular taxation year of the corporation for an apprenticeship training tax credit if the partnership were a corporation whose fiscal period was its taxation year, the portion of that apprenticeship training tax credit that may reasonably be considered to be the corporation's share of the tax credit may be included in determining the amount of the corporation's apprenticeship training tax credit for the corporation's taxation year.

Limited partner

(15)  Despite subsection (14), a limited partner's share of a partnership's tax credit referred to in subsection (14) shall be deemed to be nil.

Deemed tax payment

(16)  A corporation shall be deemed to pay on account of its tax payable under this Act for a taxation year an amount claimed by the corporation, not exceeding the amount by which "H" exceeds "J" where,

"H" is the corporation's apprenticeship training tax credit for the taxation year, and

"J" is the maximum amount, if any, deductible by the corporation under subsections (1) and (2) in determining its tax payable under this Act for the taxation year.

Time of deemed payment

(17)  A corporation shall be deemed to make the payment referred to in subsection (16) and the Minister shall be deemed to apply the deemed payment on the day on or before which the corporation would be required under clause 78 (2) (b) to pay any balance of tax payable for the taxation year.

Books and records

(18)  Unless otherwise directed by the Minister, the apprenticeship contract or training agreement that is registered with the Ministry of Training, Colleges and Universities forms part of the records and books of account required to be kept under section 94 by the corporation providing the qualifying apprenticeship.

Definitions

(19)  In this section,

"government assistance" means assistance in any form from a government, municipality or other public authority, and includes a grant, subsidy, forgivable loan, deduction from tax or investment allowance, but does not include,

(a) a tax credit referred to as a "specified tax credit" in subsection 44.1 (4) of the Act, or

(b) a Canadian film or video production tax credit under section 125.4 of the Income Tax Act (Canada) or an investment tax credit under section 127 of that Act; ("aide gouvernementale")

"qualifying skilled trade" means an apprenticeship trade designated by the Minister that is regulated under the Apprenticeship and Certification Act, 1998 or the Trades Qualification and Apprenticeship Act. ("métier spécialisé admissible")

Regulations

(20)  The Minister may make regulations,

(a) prescribing rules for calculating the amount of the apprenticeship training tax credit;

(b) prescribing, for the purposes of subsection (7), conditions to be satisfied for an apprenticeship to be a qualifying apprenticeship;

(c) prescribing, for the purposes of subsection (11), expenditures and prescribing the conditions to be satisfied for a prescribed expenditure to be an eligible expenditure.

23.  (1)  Subsection 44.1 (4) of the Act, as enacted by the Statutes of Ontario, 1996, chapter 24, section 27 and amended by 1996, chapter 29, section 51, 1997, chapter 43, Schedule A, section 24, 1998, chapter 5, section 18, 1998, chapter 34, section 44 and 2004, chapter 16, section 2, is amended by adding the following paragraph:

12. An apprenticeship training tax credit under section 43.13.

(2)  Subsection 44.1 (5) of the Act, as re-enacted by the Statutes of Ontario, 1998, chapter 34, section 44 and amended by 1998, chapter 34, section 44 and 2004, chapter 16, section 2, is amended by striking out "sections 43.3 to 43.12" in the portion before paragraph 1 and substituting "sections 43.3 to 43.13".

(3)  Paragraph 1 of subsection 44.1 (5) of the Act, as re-enacted by the Statutes of Ontario, 1998, chapter 34, section 44 and amended by 1998, chapter 34, section 44 and 2004, chapter 16, section 2, is amended by striking out "sections 43.3 to 43.12" and substituting "sections 43.3 to 43.13".

24.  Subsection 49 (3) of the Act, as amended by the Statutes of Ontario, 2004, chapter 16, section 2, is repealed and the following substituted:

Income Tax Act (Canada), ss. 134, 134.2 applicable

(3)  Section 134 of the Income Tax Act (Canada) applies for the purposes of this Act and section 134.2 of that Act applies for the purposes of this Act in respect of a corporation that revokes, after February 27, 2000, an election to be taxed as a non-resident-owned investment corporation.

25.  The definition of "C" in subsection 51 (4) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 10, section 8 and amended by 2004, chapter 16, section 2, is amended by adding "as determined under subsection 43 (4)" at the end.

26.  Section 55.1 of the Act, as enacted by the Statutes of Ontario, 1996, chapter 29, section 55 and amended by 2001, chapter 23, section 37 and 2004, chapter 16, section 2, is amended by adding the following subsections:

Determining losses of entrant bank on winding-up of Canadian affiliate

(2)  If paragraphs 142.7 (12) (a) and (b) of the Income Tax Act (Canada) apply in respect of the winding-up of a Canadian affiliate of an entrant bank (within the meaning of subsection 142.7 (1) of that Act) or in respect of the dissolution of a Canadian affiliate of an entrant bank under a dissolution order (within the meaning of subsection 142.7 (12) of that Act), the rules in paragraphs 142.7 (12) (d) to (g) of that Act apply for the purposes of determining the non-capital loss or net capital loss of the entrant bank under this Act.

Exception

(3)  Subsection (2) does not apply unless,

(a) before the later of the date determined under paragraph 142.7 (11) (b) of the Income Tax Act (Canada) and the day that is 180 days after the day the Budget Measures Act (Fall), 2004 receives Royal Assent,

(i) the entrant bank and the Canadian affiliate jointly elect that subsection (2) applies, if the Canadian affiliate has not been wound up or dissolved before the election is made, or

(ii) the entrant bank elects that subsection (2) applies, if the Canadian affiliate has been wound up or dissolved and ceases to exist before the election is made; or

(b) the entrant bank and the Canadian affiliate have jointly elected under paragraph 142.7 (12) (c) of the Income Tax Act (Canada) to have section 142.7 of that Act apply.

Application of Income Tax Act (Canada), s. 142.7 (12) (h)

(4)  If subsection (2) applies in respect of the winding-up of a Canadian affiliate of an entrant bank or in respect of the dissolution of a Canadian affiliate of an entrant bank under a dissolution order, the rules in paragraph 142.7 (12) (h) of the Income Tax Act (Canada) apply in respect of the entrant bank.

Exception

(5)  Subsection (4) does not apply unless, for its particular taxation year referred to in paragraph 142.7 (12) (h) of the Income Tax Act (Canada), the entrant bank,

(a) elects under paragraph 142.7 (12) (h) of that Act to have that paragraph apply; or

(b) elects under this subsection before the date determined under clause (3) (a) that subsection (4) applies.

Application of subs. (2)

(6)  Subsection (2) applies only to taxation years for which an election by the affiliate and bank under paragraph 142.7 (12) (c) of the Income Tax Act (Canada) applies or to which section 142.7 of the Income Tax Act (Canada) would have applied if an election had been made under paragraph 142.7 (12) (c) of that Act.

27.  (1)  Subsection 57.5 (10) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 49 and amended by 2004, chapter 16, section 2, is amended by striking out the portion before paragraph 1 and substituting the following:

Winding-up or dissolution of a Canadian affiliate of an entrant bank

(10)  If the events described in paragraphs 142.7 (12) (a) and (b) of the Income Tax Act (Canada) have occurred with respect to the winding-up of a Canadian affiliate of an entrant bank (within the meaning of subsection 142.7 (1) of that Act) or in respect of the dissolution of a Canadian affiliate of an entrant bank under a dissolution order (within the meaning of subsection 142.7 (12) of that Act), the entrant bank shall be deemed to be the same corporation as, and a continuation of, the Canadian affiliate for the purposes of determining the amount of the following losses of the entrant bank:

. . . . .

(2)  Section 57.5 of the Act, as enacted by the Statutes of Ontario, 1994, chapter 14, section 21 and amended by 2002, chapter 22, section 49 and 2004, chapter 16, section 2, is amended by adding the following subsections:

Exception

(11)  Subsection (10) does not apply unless,

(a) before the later of the date determined under paragraph 142.7 (11) (b) of the Income Tax Act (Canada) and the day that is 180 days after the day the Budget Measures Act (Fall), 2004 receives Royal Assent,

(i) the entrant bank and the Canadian affiliate jointly elect that subsection (10) applies, if the Canadian affiliate has not been wound up or dissolved before the election is made, or

(ii) the entrant bank elects that subsection (10) applies, if the Canadian affiliate has been wound up or dissolved and ceases to exist before the election is made; or

(b) the entrant bank and the Canadian affiliate have jointly elected under paragraph 142.7 (12) (c) of the Income Tax Act (Canada) to have section 142.7 of that Act apply.

Application of subs. (10)

(12)  Subsection (10) applies only to,

(a) taxation years for which an election by the affiliate and bank under paragraph 142.7 (12) (c) of the Income Tax Act (Canada) applies or to which section 142.7 of the Income Tax Act (Canada) would have applied if an election had been made under paragraph 142.7 (12) (c) of that Act; and

(b) preceding taxation years in which a loss for the purposes of this section was incurred.

28.  (1)  Clause 61 (1) (d) of the Act, as re-enacted by the Statutes of Ontario, 2001, chapter 23, section 40 and amended by 2004, chapter 16, section 2, is repealed and the following substituted:

(d) for taxation years ending before May 19, 2004, all of its liabilities, whether secured or unsecured, including all deferred credits, deferred taxes and reserve for future tax liabilities, but not its current accounts payable and any amounts prescribed by the regulations;

(e) for taxation years ending after May 18, 2004, all of its liabilities, whether secured or unsecured, including all deferred credits, deferred taxes and reserve for future tax liabilities, but not including,

(i) its current trade accounts payable,

(ii) amounts that represent the employee source deductions, current taxes payable or wages and salaries payable by the corporation, or

(iii) an amount prescribed by the regulations.

(2)  Subsection 61 (2) of the Act, as re-enacted by the Statutes of Ontario, 1994, chapter 14, section 25 and amended by 2004, chapter 16, section 2, is amended by striking out "or" at the end of clause (f), by adding "and" at the end of clause (g) and by adding the following clause:

(h) for taxation years ending after May 19, 1993, amounts payable in connection with the purchase or trade of shares, bonds, debentures or other types of debt obligations.

(3)  Section 61 of the Act, as amended by the Statutes of Ontario, 1994, chapter 14, section 25, 1997, chapter 43, Schedule A, section 31, 2001, chapter 23, section 40 and 2004, chapter 16, section 2, is amended by adding the following subsection:

Current trade accounts payable

(2.1)  For the purposes of this Part, a corporation's current trade accounts payable means all accounts payable by the corporation to a supplier on account of the purchase of goods or services from the supplier, other than amounts payable in connection with the purchase or trade of shares, bonds, debentures or other types of debt obligations, if the accounts payable have not been outstanding for,

(a) 120 or more days, if the amount is payable to a related person; or

(b) 365 or more days, if the amount is payable to a person who is not a related person.

(4)  Subsection 61 (8) of the Act, as re-enacted by the Statutes of Ontario, 1994, chapter 14, section 25 and amended by 2004, chapter 16, section 2, is amended by striking out "determined under clause (1) (d)" and substituting "determined under clause (1) (d) for a taxation year ending before May 19, 2004".

(5)  Section 61 of the Act, as amended by the Statutes of Ontario, 1994, chapter 14, section 25, 1997, chapter 43, Schedule A, section 31, 2001, chapter 23, section 40 and 2004, chapter 16, section 2, is amended by adding the following subsection:

Trusts, taxation years ending after May 18, 2004

(8.1)  For the purposes of this Part, a corporation that is a beneficiary of a trust shall include in the amount determined under clause (1) (e) for a taxation year ending after May 18, 2004 the same proportion of the total liabilities of the trust including any deferred credits, less any amounts described in subclauses (1) (e) (i), (ii) and (iii) in respect of the trust, as the corporation's beneficial interest in the trust.

(6)  Subsection 61 (9) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 14, section 25 and amended by 2004, chapter 16, section 2, is repealed and the following substituted:

Trust's current accounts payable or current trade accounts payable

(9)  In determining the amount to be included under subsection (8) or (8.1) in calculating the paid-up capital of a corporation, the current accounts payable or current trade accounts payable of a trust, as the case may be, shall be determined under subsection (2) or (2.1) as if the trust were a corporation and, in the application of subsection (8) or (8.1), references to a related corporation or person shall be deemed to include references to all corporations or persons that are related to the trust or to the corporation in respect of which the amount under subsection (8) or (8.1) is being determined.

29.  (1)  Clause 62 (1) (c) of the Act, as re-enacted by the Statutes of Ontario, 1998, chapter 34, section 48 and amended by 2004, chapter 16, section 2, is repealed and the following substituted:

Investments

(c) subject to subsection (1.2), the amount that equals that proportion of the paid-up capital remaining after the deduction of the amounts deductible under clauses (a), (b) and (d) to (h) which the total cost of investments made by the corporation in other corporations bears to the total assets of the corporation remaining after the deduction of the amounts deductible under clauses (a), (b) and (d) to (h);

(2)  Clause 62 (1) (c) of the Act, as re-enacted by subsection (1), is repealed and the following substituted:

Investments

(c) subject to subsection (1.2), the amount that equals that proportion of the paid-up capital remaining after the deduction of the amounts deductible under clauses (a), (b) and (d) to (i) which the total cost of investments made by the corporation in other corporations bears to the total assets of the corporation remaining after the deduction of the amounts deductible under clauses (a), (b) and (d) to (i);

(3)  Clause 62 (1) (i) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 23, section 2 and amended by 2004, chapter 16, section 2, is repealed and the following substituted:

Electricity assets

(i) all amounts, except to the extent that they have been deducted by the corporation in computing its income under Part II for the taxation year or any prior taxation year, that are deductible by the corporation under clause 11 (10) (a) on account of property that is qualifying Ontario electrical generation and conservation property described in section 204 of Regulation 183 of the Revised Regulations of Ontario, 1990 (General) made under this Act.

(4)  The definition of "any other surplus" in subsection 62 (4) of the Act, as amended by the Statutes of Ontario, 2004, chapter 16, section 2, is amended by striking out "and" at the end of clause (a) and by striking out clause (b) and substituting the following:

(b) for taxation years ending before January 1, 2003, an amount referred to in paragraph 12 (1) (o), subsections 15 (1) and (2), 17 (1) and subsection 37.1 (3) of the Income Tax Act (Canada) as made applicable by virtue of subsection 11 (1) of this Act, and

(c) for taxation years ending after December 31, 2002, an amount referred to in subsection 11.0.1 (3) of this Act or in subsections 15 (1) and (2), 17 (1) and 37.1 (3) of the Income Tax Act (Canada) as made applicable by virtue of subsection 11 (1) of this Act.

(5)  Clause (a) of the definition of "any other surplus" in subsection 62 (5) of the Act, as amended by the Statutes of Ontario, 1994, chapter 14, section 26 and 2004, chapter 16, section 2, is amended by striking out "other than accounts payable referred to in subsection 61 (2)" and substituting "other than accounts payable referred to in subsection 61 (2) or current trade accounts payable referred to in subsection 61 (2.1)".

30.  Subsection 62.1 (10) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule A, section 33 and amended by 1998, chapter 34, section 49, 2001, chapter 23, section 42 and 2004, chapter 16, section 2, is repealed and the following substituted:

Capital deduction

(10)  The capital deduction of a financial institution for a taxation year is the amount determined under the following rules:

1. If the financial institution is related at any time in the taxation year to another corporation that,

i. is a financial institution,

ii. has a permanent establishment in Canada, and

iii. is not exempt by virtue of subsection 71 (1) from tax under this Part,

the financial institution's capital deduction for the taxation year is the amount calculated using the formula,

A/B × [($2 million × C/D) + E]

in which,

"A" is the amount that is the financial institution's taxable capital employed in Canada for the taxation year for the purposes of Part I.3 of the Income Tax Act (Canada),

"B" is the total of the amount of "A" for the taxation year and all amounts each of which is the amount that is the taxable capital employed in Canada for the purposes of Part I.3 of the Income Tax Act (Canada) of a related financial institution for its last taxation year ending before the end of the financial institution's taxation year, if the related financial institution has a permanent establishment in Canada and is not exempt by virtue of subsection 71 (1) from tax under this Part,

"C" is the number of days in the taxation year before October 1, 2001,

"D" is the number of days in the taxation year, and

"E" is the amount determined under subsection (10.1).

2. In any other case, the financial institution's capital deduction for the taxation year is the amount calculated using the formula,

($2 million × C/D) + E

in which "C", "D" and "E" have the same meanings as in paragraph 1.

Determination of "E"

(10.1)  The amount of "E" in subsection (10) for a taxation year is the total of,

(a) $5 million multiplied by the ratio of the number of days in the taxation year that are after September 30, 2001 and before January 1, 2005 to the total number of days in the taxation year;

(b) $7.5 million multiplied by the ratio of the number of days in the taxation year that are after December 31, 2004 and before January 1, 2006 to the total number of days in the taxation year;

(c) $10 million multiplied by the ratio of the number of days in the taxation year that are after December 31, 2005 and before January 1, 2007 to the total number of days in the taxation year;

(d) $12.5 million multiplied by the ratio of the number of days in the taxation year that are after December 31, 2006 and before January 1, 2008 to the total number of days in the taxation year; and

(e) $15 million multiplied by the ratio of the number of days in the taxation year that are after December 31, 2007 to the total number of days in the taxation year.

31.  Clause 63 (1) (b) of the Act, as amended by the Statutes of Ontario, 1994, chapter 14, section 27 and 2004, chapter 16, section 2, is repealed and the following substituted:

(b) the amount by which the amount of the total assets of the corporation in Canada exceeds,

(i) for taxation years ending before May 19, 2004, the total of the corporation's current accounts payable relating to its permanent establishments in Canada and any amounts prescribed by the regulations, or

(ii) for taxation years ending after May 18, 2004, any amount described in subclause 61 (1) (e) (i), (ii) or (iii) for the corporation relating to its permanent establishments in Canada,

32.  (1)  Subsection 66 (1) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 43, Schedule A, section 35 and amended by 2004, chapter 16, section 2, is repealed and the following substituted:

Tax on corporations subject to Division B or C

(1)  Except as otherwise provided in this section, the tax payable under this Part by a corporation for a taxation year for which its taxable paid-up capital or its taxable paid-up capital employed in Canada, as the case may be, is determined under Division B or C is the amount calculated using the formula,

A × B

in which,

"A" is the capital tax rate determined under subsection (1.1) for the corporation, and

"B" is the amount of the corporation's taxable paid-up capital or taxable paid-up capital employed in Canada, as the case may be, as determined under Division B or C.

Capital tax rate

(1.1)  The capital tax rate for a corporation for a taxation year is the total of,

(a) 0.3 per cent multiplied by the ratio of the number of days in the taxation year that are before January 1, 2009 to the total number of days in the taxation year;

(b) 0.225 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2008 and before January 1, 2010 to the total number of days in the taxation year;

(c) 0.15 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2009 and before January 1, 2011 to the total number of days in the taxation year; and

(d) 0.075 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2010 and before January 1, 2012 to the total number of days in the taxation year.

No tax payable after 2011

(1.2)  No tax is payable under this Part by a corporation that is not a financial institution for a taxation year commencing after December 31, 2011.

(2)  Subsection 66 (4) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule A, section 35 and amended by 2004, chapter 16, section 2, is repealed and the following substituted:

Tax payable by a financial institution

(4)  The tax payable under this Part for a taxation year by a financial institution, other than a credit union, is calculated using the formula,

[C × (D + E)] + F

in which,

"C" is the percentage of the taxable paid-up capital of the financial institution that is not deemed, under the prescribed rules, to be used by it in the taxation year in a jurisdiction other than Ontario,

"D" is the amount calculated under subsection (4.1),

"E" is the amount calculated under subsection (4.2) or (4.3), and

"F" is the amount of tax, if any, payable for the taxation year under section 66.1.

Same

(4.1)  The variable "D" in subsection (4) is calculated using the formula,

G × H

in which,

"G" is the total of,

(a) 0.6 per cent multiplied by the ratio of the number of days in the taxation year that are before January 1, 2009 to the total number of days in the taxation year,

(b) 0.45 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2008 and before January 1, 2010 to the total number of days in the taxation year,

(c) 0.3 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2009 and before January 1, 2011 to the total number of days in the taxation year, and

(d) 0.15 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2010 and before January 1, 2012 to the total number of days in the taxation year, and

"H" is the amount that is the lesser of,

(a) the adjusted taxable paid-up capital of the financial institution for the taxation year, as determined under Division B.1, and

(b) the basic capital amount of the financial institution for the taxation year.

Same

(4.2)  If the financial institution is a deposit-taking institution, as defined in subsection 66.1 (14), in the taxation year or is related in the taxation year to a deposit-taking institution, the variable "E" in subsection (4) is calculated using the formula,

J × K

in which,

"J" is the total of,

(a) 0.9 per cent multiplied by the ratio of the number of days in the taxation year that are before January 1, 2009 to the total number of days in the taxation year,

(b) 0.675 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2008 and before January 1, 2010 to the total number of days in the taxation year,

(c) 0.45 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2009 and before January 1, 2011 to the total number of days in the taxation year, and

(d) 0.225 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2010 and before January 1, 2012 to the total number of days in the taxation year, and

"K" is the amount, if any, by which the adjusted taxable paid-up capital of the financial institution for the taxation year exceeds its basic capital amount for the taxation year.

Same

(4.3)  If the financial institution is not a deposit-taking institution, as defined in subsection 66.1 (14), in the taxation year and is not related in the taxation year to a deposit-taking institution, the variable "E" in subsection (4) is calculated using the formula,

L × K

in which,

"L" is the total of,

(a) 0.72 per cent multiplied by the ratio of the number of days in the taxation year that are before January 1, 2009 to the total number of days in the taxation year,

(b) 0.54 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2008 and before January 1, 2010 to the total number of days in the taxation year,

(c) 0.36 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2009 and before January 1, 2011 to the total number of days in the taxation year, and

(d) 0.18 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2010 and before January 1, 2012 to the total number of days in the taxation year, and

"K" is the amount, if any, by which the adjusted taxable paid-up capital of the financial institution for the taxation year exceeds its basic capital amount for the taxation year.

No tax payable after 2011

(4.4)  No tax is payable under this Part by a financial institution for a taxation year commencing after December 31, 2011.

33.  Subsection 66.1 (3.2) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule A, section 36 and amended by 2004, chapter 16, section 2, is repealed and the following substituted:

Eligible tax

(3.2)  The amount of the eligible tax for a taxation year of a financial institution, other than a credit union, is the total of,

(a) the amount of tax, if any, payable by the financial institution under this section for the taxation year; and

(b) the amount calculated for the taxation year using the formula,

(A - B ) × (C × D × 0.2)

in which,

"A" is the amount of the adjusted taxable paid-up capital of the financial institution for the taxation year as determined under Division B.1,

"B" is the exempt amount of the financial institution for the taxation year as determined under clauses (1.2) (b) and (c),

"C" is the percentage of the taxable paid-up capital of the financial institution that is not deemed, under the prescribed rules, to be used by it in the taxation year in a jurisdiction other than Ontario, and

"D" is the total of,

(a) 0.9 per cent multiplied by the ratio of the number of days in the taxation year that are before January 1, 2009 to the total number of days in the taxation year,

(b) 0.675 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2008 and before January 1, 2010 to the total number of days in the taxation year,

(c) 0.45 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2009 and before January 1, 2011 to the total number of days in the taxation year, and

(d) 0.225 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2010 and before January 1, 2012 to the total number of days in the taxation year.

34.  (1)  Subsection 69 (1) of the Act, as amended by the Statutes of Ontario, 1999, chapter 9, section 91, 2001, chapter 23, section 45 and 2004, chapter 16, section 2, is repealed.

(2)  Paragraph 2 of subsection 69 (2) of the Act, as re-enacted by the Statutes of Ontario, 2002, chapter 22, section 52 and amended by 2002, chapter 22, section 52 and 2004, chapter 16, section 2, is repealed and the following substituted:

2. The amount, if any, determined using the formula,

A × (B - C)

in which,

"A" is the amount described in paragraph 3,

"B" is the amount described in paragraph 4 or 4.1, and

"C" is the amount described in paragraph 5 or 5.1 or the amount determined in accordance with subsection (2.1).

(3)  Paragraph 4 of subsection 69 (2) of the Act, as re-enacted by the Statutes of Ontario, 2002, chapter 22, section 52 and amended by 2004, chapter 16, section 2, is amended by striking out "the variable "B"" in the portion before the formula and substituting "the variable "B" for a taxation year ending before January 1, 2005".

(4)  Subsection 69 (2) of the Act, as re-enacted by the Statutes of Ontario, 1999, chapter 9, section 91 and amended by 2001, chapter 23, section 45, 2002, chapter 22, section 52 and 2004, chapter 16, section 2, is amended by adding the following paragraph:

4.1 For the purposes of paragraph 2, the variable "B" for a taxation year that ends after December 31, 2004 is the amount calculated using the formula,

D × E

in which,

"D" is the corporation's taxable paid-up capital or taxable paid-up capital employed in Canada, as the case may be, for the taxation year, and

"E" is the capital tax rate for the corporation for the taxation year, as determined under subsection 66 (1.1).

(5)  Paragraph 9 of subsection 69 (2) of the Act, as re-enacted by the Statutes of Ontario, 2002, chapter 22, section 52 and amended by 2004, chapter 16, section 2, is repealed and the following substituted:

9. For the purposes of the variable "GG" in paragraph 5.1, the applicable amount under this paragraph is calculated using the formula,

E × Q

in which,

"E" is the capital tax rate for the corporation for the taxation year, as determined under subsection 66 (1.1), and

"Q" is the lesser of,

(a) the amount determined under subsection 62.1 (10.1) for the taxation year, and

(b) the product of,

(i) the corporation's taxable paid-up capital or taxable paid-up capital employed in Canada, as the case may be, for the taxation year or, if the corporation is associated with one or more corporations in the taxation year that have a permanent establishment in Canada, the total of the taxable paid-up capital or taxable paid-up capital employed in Canada, as the case may be, of the corporation for the taxation year and of each such associated corporation for the last taxation year of the associated corporation ending during the corporation's taxation year, and

(ii) the ratio of the number of days in the taxation year that are after September 30, 2001 to the total number of days in the taxation year.

(6)  Subsection 69 (2.4) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 52 and amended by 2004, chapter 16, section 2, is repealed and the following substituted:

Net deduction of a corporation in the associated group

(2.4)  The net deduction of a corporation for a taxation year is the amount calculated using the formula,

A × (E × Z) × T/X

in which,

"A" is the corporation's Ontario allocation factor, as defined in subsection 12 (1), for the last taxation year ending in the calendar year preceding the calendar year in which the taxation year ends,

"E" is the capital tax rate for the corporation for the taxation year, as determined under subsection 66 (1.1),

"T" is the amount of the total assets of the corporation as recorded in its books and records for the last taxation year ending in the calendar year preceding the calendar year in which the taxation year ends,

"X" is the sum of the total assets of each corporation in the associated group as recorded in its books and records for the last taxation year ending in the calendar year preceding the calendar year in which the taxation year ends, and

"Z" is the amount for the taxation year determined under subsection 62.1 (10.1).

35.  Section 73.1 of the Act, as enacted by the Statutes of Ontario, 2001, chapter 23, section 47 and amended by 2004, chapter 16, section 2, is repealed and the following substituted:

Definitions

73.1  The following terms have the same meaning for the purposes of this Act as they have for the purposes of the Insurance Act:

1. Accident and sickness insurance.

2. Automobile insurance.

3. Fraternal society.

4. Life insurance.

5. Marine insurance.

6. Mutual benefit society.

7. Property insurance.

36.  (1)  Clause 74 (1) (a) of the Act, as re-enacted by the Statutes of Ontario, 1994, chapter 14, section 31 and amended by 2004, chapter 16, section 2, is amended by striking out "accident insurance, life insurance, sickness insurance" and substituting "accident and sickness insurance, life insurance".

(2)  The definition of "A" in subsection 74 (2) of the Act, as enacted by the Statutes of Ontario, 1992, chapter 3, section 15 and amended by 2004, chapter 16, section 2, is amended by striking out "within the meaning of the Insurance Act".

(3)  Subsection 74 (4) of the Act, as amended by the Statutes of Ontario, 2004, chapter 16, section 2, is amended by striking out "property insurance within the meaning of the Insurance Act and the regulations made thereunder" in the portion before clause (a) and substituting "property insurance".

(4)  Clause 74 (5) (b) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 14, section 31 and amended by 2004, chapter 16, section 2, is repealed and the following substituted:

(b) a fraternal society, and

(5)  Clauses 74 (7) (d) and (e) of the Act, as amended by the Statutes of Ontario, 2004, chapter 16, section 2, are repealed and the following substituted:

(d) by a fraternal society with respect to contracts entered into before January 1, 1974;

(e) by a mutual benefit society; or

(6)  Subsection 74 (8) of the Act, as amended by the Statutes of Ontario, 2004, chapter 16, section 2, is repealed.

37.  Clause 74.3 (2) (a) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule A, section 42 and amended by 2004, chapter 16, section 2, is amended by striking out "accident insurance or sickness insurance" and substituting "accident and sickness insurance".

38.  The definition of "A" in clause 76 (6) (b) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 34, section 52 and amended by 1998, chapter 34, section 52 and 2004, chapter 16, section 2, is amended by striking out "sections 43.2 to 43.12" and substituting "sections 43.2 to 43.13".

39.  (1)  Sub-subclause 78 (2) (b) (i) (B) of the Act, as re-enacted by the Statutes of Ontario, 2000, chapter 10, section 9 and amended by 2004, chapter 16, section 2, is amended by striking out "clauses 41 (3.2) (a) to (f)" and substituting "clauses 41 (3.2) (a) to (e)".

(2)  Subsection 78 (3) of the Act, as re-enacted by the Statutes of Ontario, 2000, chapter 10, section 9 and amended by 2004, chapter 16, section 2, is amended by striking out "clauses 41 (3.2) (a) to (f)" and substituting "clauses 41 (3.2) (a) to (e)".

(3)  Section 78 of the Act, as amended by the Statutes of Ontario, 1994, chapter 14, section 36, 1996, chapter 1, Schedule B, section 11, 1996, chapter 24, section 29, 1996, chapter 29, section 59, 1997, chapter 43, Schedule A, section 45, 1998, chapter 5, section 22, 1998, chapter 34, section 53, 2000, chapter 10, section 9, 2001, chapter 23, section 51 and 2004, chapter 16, section 2, is amended by adding the following subsection:

Amalgamations

(3.1)  For the purposes of subclause (2) (b) (i), where a new corporation is formed as a result of an amalgamation within the meaning of section 87 of the Income Tax Act (Canada), the following rules apply:

1. The new corporation shall be deemed to have had a taxation year of 365 days that ended immediately before the amalgamation and a taxable income for that taxation year equal to the sum of all amounts, each of which is the product obtained when the taxable income of a predecessor corporation (within the meaning assigned by section 87 of the Income Tax Act (Canada)) for its taxation year that ended immediately before the amalgamation is multiplied by the ratio that 365 days is of the number of days in that taxation year of the predecessor corporation.

2. Sub-subclause (2) (b) (i) (B) shall be applied with respect to the new corporation as if that sub-subclause read "its taxable income within the meaning of paragraph 1 of subsection (3.1) did not exceed the total of the amounts described in clauses 41 (3.2) (a) to (e) for that taxation year".

(4)  Clause 78 (4.3) (a) of the Act, as enacted by the Statutes of Ontario, 2001, chapter 23, section 51 and amended by 2004, chapter 16, section 2, is amended by striking out "sections 43.2 to 43.12" and substituting "sections 43.2 to 43.13".

(5)  Clause 78 (5) (b) of the Act, as re-enacted by the Statutes of Ontario, 1996, chapter 24, section 29 and amended by 1997, chapter 43, Schedule A, section 45, 1998, chapter 5, section 22, 1998, chapter 34, section 53 and 2004, chapter 16, section 2, is amended by striking out "sections 43.2 to 43.12" and substituting "sections 43.2 to 43.13".

(6)  Clause 78 (5.1) (b) of the Act, as enacted by the Statutes of Ontario, 2001, chapter 23, section 51 and amended by 2004, chapter 16, section 2, is amended by striking out "sections 43.2 to 43.12" and substituting "sections 43.2 to 43.13".

(7)  Clause 78 (6) (a) of the Act, as re-enacted by the Statutes of Ontario, 1998, chapter 34, section 53 and amended by 1998, chapter 34, section 53 and 2004, chapter 16, section 2, is amended by striking out "sections 43.2 to 43.12" and substituting "sections 43.2 to 43.13".

40.  (1)  Clause 80 (1) (b.1) of the Act, as re-enacted by the Statutes of Ontario, 1996, chapter 24, section 30 and amended by 1997, chapter 43, Schedule A, section 46, 1998, chapter 5, section 23, 1998, chapter 34, section 55 and 2004, chapter 16, section 2, is amended by striking out "section 43.2, 43.3, 43.4, 43.5, 43.6, 43.7, 43.8, 43.9, 43.10, 43.11 or 43.12" and substituting "any of sections 43.2 to 43.13".

(2)  Subsection 80 (30) of the Act, as enacted by the Statutes of Ontario, 2001, chapter 23, section 53 and amended by 2004, chapter 16, section 2, is amended by striking out the portion before paragraph 1 and substituting the following:

Application of s. 160 of Income Tax Act (Canada)

(30)  Section 160 of the Income Tax Act (Canada) applies for the purposes of this Act, to the extent that the section applies in respect of corporations, with the following exceptions:

. . . . .

41.  Clause 84 (7) (d) of the Act, as amended by the Statutes of Ontario, 2004, chapter 16, section 2, is amended by striking out "file an additional objection" and substituting "serve an additional objection".

42.  (1)  Clause 112 (1) (d.2) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 23, section 2 and amended by 2004, chapter 16, section 2, is repealed.

(2)  Clause 112 (1) (g) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 14, section 52 and amended by 2004, chapter 16, section 2, is amended by striking out "subsection 75 (16)" and substituting "subsection 75 (17)".

Commencement

43.  (1)  Subject to subsections (2) to (12), this Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

Same

(2)  Subsections 7 (1) and 29 (2) and (3) shall be deemed to have come into force on December 9, 2002.

Same

(3)  Subsections 15 (2) and 39 (1) and (2) shall be deemed to have come into force on January 1, 2003.

Same

(4)  Sections 17, 26 and 27 shall be deemed to have come into force on June 28, 1999.

Same

(5)  Subsection 20 (2) shall be deemed to have come into force on January 1, 2002.

Same

(6)  Subsections 20 (3) and 21 (1), (2), (3) and (5) shall be deemed to have come into force on May 7, 1997.

Same

(7)  Section 24 shall be deemed to have come into force on February 28, 2000.

Same

(8)  Subsections 28 (1), (3), (4), (5) and (6) and 29 (5) and section 31 shall be deemed to have come into force on May 18, 2004.

Same

(9)  Subsection 28 (2) shall be deemed to have come into force on May 20, 1993.

Same

(10)  Subsection 29 (1) shall be deemed to have come into force on December 5, 2001.

Same

(11)  Sections 35, 36 and 37 come into force on the day subsection 4 (1) of Schedule H to the Government Efficiency Act, 2002 comes into force.

Same

(12)  Subsection 39 (3) shall be deemed to have come into force on May 2, 2000.

SCHEDULE 10
AMENDMENTS TO THE EDUCATION ACT

1.  Section 257.12 of the Education Act, as enacted by the Statutes of Ontario, 1997, chapter 31, section 113 and amended by 1998, chapter 3, section 34, 1998, chapter 33, section 42, 1999, chapter 9, section 99, 2000, chapter 25, section 45, 2001, chapter 17, section 1, 2001, chapter 23, section 65, 2002, chapter 17, Schedule C, section 9, 2002, chapter 17, Schedule F, Table and 2002, chapter 22, section 58, is amended by adding the following subsection:

Application to whole year

(1.1.1)  A regulation under clause (1) (b) is effective for the whole year to which it applies, unless otherwise specified in the regulation.

2.  (1)  Clause 257.14 (1) (i) of the Act, as re-enacted by the Statutes of Ontario, 2002, chapter 8, Schedule A, section 2 and amended by 2002, chapter 17, Schedule F, Table, is repealed and the following substituted:

(i) providing, despite any provision of this Act, the Municipal Act, 2001, or the Provincial Land Tax Act, that boards and municipalities may levy or collect rates for a previous year in respect of property in territory without municipal organization, subject to conditions set out in the regulation. 

(2)  Subsection 257.14 (4) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 8, Schedule A, section 2, is repealed and the following substituted:

Retroactive

(4)  A regulation under clause (1) (i) may provide for the levying or collection of rates for any year that is after 1997.

Commencement

3.  This Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

SCHEDULE 11
AMENDMENTS TO THE ELECTRICITY ACT, 1998

1.  The definition of "municipal electricity utility" in section 88 of the Electricity Act, 1998, as amended by the Statutes of Ontario, 2000, chapter 42, section 30, is amended by adding the following clause:

(d.1) a corporation established after May 1, 2003 under Ontario Regulation 168/03 (Municipal Business Corporations) under the Municipal Act, 2001, for the purpose of acquiring, holding, disposing of and otherwise dealing with shares of a corporation incorporated by the municipal corporation under section 142 of this Act,

2.  (1)  Subsection 92 (5) of the Act is repealed.

(2)  Subsection 92 (8) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 102 and amended by 2004, chapter 16, Schedule D, Table, is repealed.

(3)  Subsection 92 (9) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 25, section 46, is repealed and the following substituted:

Non-application

(9)  This section, other than this subsection, does not apply to the following:

1. A hydro-electric generating station, as defined in subsection 92.1 (24), after December 31, 2000.

2. A wind turbine tower, as defined in subsection 45.4 (5) of Ontario Regulation 282/98 (General) made under the Assessment Act, after December 31, 2004.

3.  (1)  Subsection 92.1 (2) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 25, section 46, is repealed and the following substituted:

Payment to the Financial Corporation

(2)  Despite subsection (1), the owner of a hydro-electric generating station shall pay to the Financial Corporation a charge computed at the rates specified in subsection (4) on the gross revenue from annual generation from the hydro-electric generating station if the hydro-electric generating station is owned by a person referred to in subsection 92 (1) or was owned at any time after March 31, 1999 by a person referred to in subsection 92 (1).

(2)  Subsection 92.1 (7) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 25, section 46, is repealed and the following substituted:

Transitional

(7)  If, on December 31, 2000, the holder of a water power lease was not required to pay a hydro-electric charge as required under the Public Lands Act because the hydro-electric generating station had been in service for less than a specified period of time, subsection (5) does not apply for the remainder of that period, if any.

(3)  Subsection 92.1 (9) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 25, section 46 and amended by 2004, chapter 16, Schedule D, Table, is repealed.

(4)  Clauses 92.1 (21) (b), (c) and (e) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 25, section 46, are repealed and the following substituted:

(b) prescribing one or more methods for determining gross revenue for the purposes of this section;

. . . . .

(e) determining the annual generation for the purposes of subsections (4) and (5) pursuant to energy transfers or water transfers between a hydro-electric generating station in Ontario and a hydro-electric generating station in Ontario or in another jurisdiction;

4.  (1)  Subsection 94 (3) of the Act, as amended by the Statutes of Ontario, 2000, chapter 42, section 36, 2002, chapter 22, section 63 and 2004, chapter 16, Schedule D, Table, is amended by adding the following paragraph:

4. Any amount that the municipal electricity utility would be liable to pay as tax under Part I of the Income Tax Act (Canada) in respect of the taxation year if that tax were computed on the basis that the municipal electricity utility had no income during the taxation year other than an amount included in income under paragraph 14 (1) (b) of the Income Tax Act (Canada) in respect of the transfer of its interest in the property.

(2)  Section 94 of the Act, as amended by the Statutes of Ontario, 2000, chapter 42, section 36, 2002, chapter 22, section 63 and 2004, chapter 16, Schedule D, Table, is amended by adding the following subsections:

Refund

(7)  Amounts paid under this section in respect of a transfer may be refunded in accordance with the regulations if the proceeds of the transfer are reinvested in the prescribed manner.

Same

(7.1)  In such circumstances as may be prescribed, a municipal corporation or municipal electricity utility shall repay an amount refunded to it under subsection (7).

. . . . .

Same

(9.1)  Despite subsection (9), a transfer that does not comply with subsection (1) is not void if the municipal corporation or municipal electricity utility that made the transfer satisfies the prescribed conditions in respect of the transfer.

5.  Section 95 of the Act, as amended by the Statutes of Ontario, 1999, chapter 9, section 103 and 2004, chapter 16, Schedule D, Table, is repealed and the following substituted:

Application of Corporations Tax Act

95.  (1)  The Minister of Finance is responsible for enforcing the payment of amounts payable under this Part, including amounts payable under regulations made under this Part, and, for the purposes of this Part,

(a) except as otherwise prescribed by the regulations, Parts V and VI of the Corporations Tax Act apply with necessary modifications and with such changes as may be prescribed by the regulations to amounts payable under this Part after November 6, 1998, other than amounts payable under section 92 or 92.1;

(b) except as otherwise prescribed by the regulations, Divisions C, D, E and F of Part V and Part VI of the Corporations Tax Act apply with necessary modifications and with such changes as may be prescribed by the regulations to amounts payable under section 92 or 92.1 after November 6, 1998, including any penalties and interest on late payments;

(c) any amount payable under this Part after November 6, 1998, other than under section 94, that remains unpaid after it becomes due, including any penalties and interest on late payments, may be collected as if it were tax payable under the Corporations Tax Act.

Collection of amounts payable under s. 94

(2)  In the application of Parts V and VI of the Corporations Tax Act for the purposes of enforcing the payment of any amount under section 94,

(a) a reference to "a taxation year" or "the taxation year" shall be read as a reference to a transfer or a particular transfer, as the case may be;

(b) a reference to a return shall be read as a reference to any notice given to the Minister for the purposes of section 94; and

(c) a reference to a notice of assessment or reassessment shall be read as including a reference to correspondence prescribed by the regulations that is issued by the Minister for the purposes of section 94.

6.  Subsection 96 (1) of the Act, as amended by the Statutes of Ontario, 2000, chapter 42, section 38, is amended by adding the following clauses:

(e.2) governing refunds authorized by subsection 94 (7);

(e.3) prescribing circumstances for the purposes of subsection 94 (7.1);

(e.4) prescribing conditions in respect of a transfer for the purposes of subsection 94 (9.1);

. . . . .

(f.1) prescribing one or more provisions of Part V or VI of the Corporations Tax Act that do not apply in respect of an amount payable under one or more sections in this Part that are prescribed in the regulation;

(f.2) prescribing changes to provisions in Part V or VI of the Corporations Tax Act that apply in respect of an amount payable under one or more sections in this Part that are prescribed in the regulation, including,

(i) prescribing a change to a time limit for issuing an assessment or reassessment in respect of an amount payable under this Part after November 6, 1998, and

(ii) prescribing a change to a time limit for the payment of a refund of an overpayment in respect of a period after November 6, 1998;

7.  Section 142 of the Act, as amended by the Statutes of Ontario, 1999, chapter 14, Schedule F, section 3 and 2002, chapter 1, Schedule A, section 30, is amended by adding the following subsection:

Holding companies

(1.1)  A corporation that one or more municipal corporations caused to be incorporated under the Business Corporations Act after November 6, 1998 and before May 2, 2003 to acquire, hold, dispose of and otherwise deal with shares of a corporation that was incorporated pursuant to this section shall be considered to be a corporation incorporated pursuant to this section.

Commencement

8.  (1)  Subject to subsections (2), (3) and (4), this Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

Same

(2)  Section 1 shall be deemed to have come into force on May 2, 2003.

Same

(3)  Subsections 3 (1) and (2) shall be deemed to have come into force on January 1, 2001.

Same

(4)  Subsection 4 (1) shall be deemed to have come into force on November 7, 1998.

SCHEDULE 12
AMENDMENTS TO THE EMPLOYER HEALTH TAX ACT

1.  Section 1 of the Employer Health Tax Act, as amended by the Statutes of Ontario, 1994, chapter 8, section 1, 1994, chapter 17, section 57, 1996, chapter 18, section 4, 1996, chapter 24, section 1, 1998, chapter 34, sections 58 and 59, 1999, chapter 9, section 106, 2001, chapter 23, section 71, 2002, chapter 22, section 65 and 2004, chapter 16, Schedule D, Table, is amended by adding the following subsections:

Remuneration

(1.2)  The following rules apply in determining for the purposes of this Act the amount of remuneration or total Ontario remuneration paid by an employer:

1. An amount paid by the employer to a trustee or custodian, as the case may be, for the benefit of an employee under an employees profit sharing plan, employee benefit plan, employee trust or salary deferral arrangement is deemed to be remuneration paid by the employer to or on behalf of the employee if the amount, upon payment or allocation to the employee, is by reason of section 5, 6 or 7 of the Income Tax Act (Canada) required to be included in the income of a person under that Act.

2. An amount or benefit that is received or enjoyed, or deemed to be received or enjoyed, by an employee in respect of his or her employment with the employer and that is required to be included in the income of a person under the Income Tax Act (Canada) by reason of section 5, 6 or 7 of that Act is deemed to be remuneration paid by the employer to or on behalf of the employee.

3. The amount of a benefit referred to in paragraph 2 is deemed to be the amount that is required to be included in the income of a person under the Income Tax Act (Canada).

Rules for determining amount of total Ontario remuneration

(1.3)  For the purposes of the definition of "total Ontario remuneration" in subsection (1), the total remuneration paid to or on behalf of an employee who reports for work at a permanent establishment of an employer in Ontario at any time during a year includes all remuneration paid to or on behalf of the employee during the year, even if the employee also reports for work at a permanent establishment of the employer outside Ontario at any time during the year.

Exception

(1.4)  Despite subsection (1.3), no remuneration paid to or on behalf of an employee is included in an employer's total Ontario remuneration for a year if the Minister is satisfied that the employee reported for work at a permanent establishment of the employer outside Ontario for all or substantially all of the year.

Exception, application after 2001 only

(1.5)  Subsection (1.3) does not apply for any year before 2002 to a professional sports team that was a party to the application in the matter of Toronto Blue Jays Baseball Club v. Ontario (Minister of Finance), decided by the Ontario Superior Court of Justice on April 27, 2004.

2.  (1)  Subsection 2 (3.1) of the Act, as re-enacted by the Statutes of Ontario, 2001, chapter 23, section 72, is amended by striking out "in respect of the security" and substituting "in respect of the security or the agreement to sell or issue the security".

(2)  Subsection 2 (3.2) of the Act, as re-enacted by the Statutes of Ontario, 2001, chapter 23, section 72 and amended by 2004, chapter 16, Schedule D, Table, is amended by striking out "in respect of the security" and substituting "in respect of the security or the agreement to sell or issue the security".

(3)  Subsection 2 (3.3) of the Act, as re-enacted by the Statutes of Ontario, 2001, chapter 23, section 72 and amended by 2004, chapter 16, Schedule D, Table, is amended by striking out "with respect to the security" and substituting "in respect of the security or the agreement to sell or issue the security".

(4)  Subsection 2 (3.5) of the Act, as re-enacted by the Statutes of Ontario, 2001, chapter 23, section 72, is repealed and the following substituted:

Designated year

(3.5)  For the purposes of subsections (3.1) to (3.3), the designated year in respect of a security or an agreement to sell or issue a security is,

(a) the year in which the amount of the benefit is deemed to be received by the employee under paragraph 7 (1) (a) of the Income Tax Act (Canada), as that paragraph is modified by subsection 7 (1.1) of that Act, if that paragraph applies and if, at both the time the agreement to sell or issue the security is entered into and the time the security is acquired under the agreement,

(i) the person who agreed to sell or issue the security to the employee is a Canadian-controlled private corporation, within the meaning assigned by subsection 125 (7) of the Income Tax Act (Canada), and

(ii) the security is a share of the capital stock of a Canadian-controlled private corporation;

(b) the year in which the employee acquired the security, in any other case where paragraph 7 (1) (a) of the Income Tax Act (Canada) applies and clause (a) does not apply; or

(c) the year in which the amount of the benefit, other than a benefit deemed to be received under paragraph 7 (1) (a) of the Income Tax Act (Canada), is deemed to be received by the employee under section 7 of that Act, if that section, other than paragraph 7 (1) (a), applies.

3.  (1)  Subsection 2.2 (1) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 45, is repealed and the following substituted:

Exclusion of certain stock option benefits from remuneration

(1)  This section applies with respect to an employer for a year before 2010 if an amount is deemed to be remuneration paid by the employer to an employee under subsection 2 (3.1), (3.2) or (3.3) during the year.

(2)  Subsection 2.2 (3) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 45 and amended by 2001, chapter 23, section 73 and 2004, chapter 16, Schedule D, Table, is amended by striking out "and" at the end of clause (b), by adding "and" at the end of clause (c) and by adding the following clause:

(d) if the agreement is entered into before May 18, 2004.

4.  Section 5 of the Act, as amended by the Statutes of Ontario, 1994, chapter 8, section 5, 1996, chapter 24, section 4 and 2004, chapter 16, Schedule D, Table, is amended by adding the following subsection:

Demand for return

(1.0.1)  Every person who receives a written demand for a return from the Minister or from an officer of the Ministry shall deliver the return to the Minister.

5.  Subsection 30 (1) of the Act, as re-enacted by the Statutes of Ontario, 1996, chapter 29, section 7, is repealed and the following substituted:

Penalties, failure to deliver return

(1)  Every person who fails to deliver a return in respect of 2003 or a previous year at the time and in the manner required by this Act or the regulations shall pay a penalty, when assessed therefor, equal to 5 per cent of the amount determined under subsection 7 (1) or (2.1) to be the excess amount in respect of the year as of the date on which the return was required to be delivered, before taking into consideration the penalty imposed under this subsection, if the excess amount as of that date is at least $1,000.

Same, return 2004 and subsequent years

(1.1)  Subject to subsection (1.3), every person who fails to deliver a return in respect of 2004 or a subsequent year at the time and in the manner required by this Act or the regulations shall pay a penalty, when assessed therefor, in the amount calculated using the formula,

(0.05 × D) + M (0.01 × D)

in which,

"D" is the amount, if any, that is determined under subsection 7 (1) to be the excess amount in respect of the year as of the date on which the return was required to be delivered, before taking into consideration the penalty imposed under this subsection, and

"M" is the number of complete months, not exceeding 12, from the date on which the return was required to be delivered to the date on which it is delivered,

if the amount of "D" is at least $1,000.

Repeated failures to deliver a return

(1.2)  Subject to subsection (1.3), every person who fails to deliver a return in respect of 2004 or a subsequent year at the time and in the manner required by this Act or the regulations and who has received a demand for the return under subsection 5 (1.0.1) is liable to a penalty determined in accordance with the following formula, instead of a penalty under subsection (1.1), if, on or before the day on which the tax to which the return relates is assessed, a penalty was assessed against the person under subsection (1) or (1.1) or this subsection in respect of a return required to be delivered under this Act for any of the three previous years:

(0.10 × D) + MM (0.02 × D)

in which,

"D" has the same meaning as in subsection (1.1), and

"MM" is the number of complete months, not exceeding 20, from the date on which the return was required to be delivered to the date on which it is delivered,

if the amount of "D" is at least $1,000.

Exception

(1.3)  Subsections (1.1) and (1.2) do not apply,

(a) to an employer referred to in clause 3 (2) (b), if the total Ontario remuneration for the year was paid by the employer during May 2004 or an earlier month;

(b) to an employer who ceased to have a permanent establishment in Ontario on or before May 18, 2004; or

(c) to a person who is required to deliver a return under subsection 5 (7), if the taxpayer for whom the person is required to deliver the return became bankrupt on or before May 18, 2004.

Same

(1.4)  Subsection (1) applies, with necessary modifications, to a person described in subsection (1.3) if the person fails to deliver a return in respect of 2004 at the time and in the manner required by this Act or the regulations.

Commencement

6.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

Same

(2)  Section 1 shall be deemed to have come into force on January 1, 1990.

SCHEDULE 13
AMENDMENTS TO THE FINANCIAL ADMINISTRATION ACT

1.  Section 1.1 of the Financial Administration Act, as re-enacted by the Statutes of Ontario, 1996, chapter 18, section 24 and amended by 1999, chapter 9, section 112, is repealed and the following substituted:

Ontario Opportunities Fund

1.1  (1)  The Minister of Finance shall establish as part of the Public Accounts of Ontario an account to be known as the Ontario Opportunities Fund in which shall be recorded money paid to Ontario by any person for the purpose of deficit reduction, the retirement of any part of the indebtedness of Ontario or the purchase for cancellation of any securities issued by Ontario.

Application of amounts recorded

(2)  The amounts recorded in the Fund under subsection (1) shall be applied in the fiscal year in which they are recorded toward the reduction of the provincial deficit for that fiscal year or to the reduction of the outstanding indebtedness of Ontario in a fiscal year in which there is no provincial deficit.

Application of section

(3)  This section applies with respect to the fiscal year ended March 31, 2004 and to subsequent fiscal years.

2.  (1)  Subsection 11.6 (3) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 8, Schedule B, section 2, is repealed and the following substituted:

Accrual of liabilities

(3)  Despite section 11.2 and subsection (2), a liability that was incurred during a fiscal year but was not paid by the time the books of the Government of Ontario for the fiscal year are closed may be recorded as an expenditure and charged against an appropriation for the fiscal year if,

(a) the liability was incurred for a purpose authorized by the appropriation;

(b) the liability was less than or equal to the amount available under the appropriation immediately before the books of the Government of Ontario for the fiscal year are closed; and

(c) a statement of account for the liability is received by the Minister of Finance before the books of the Government of Ontario for the fiscal year are closed.

(2)  Subsection 11.6 (5) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 8, Schedule B, section 2, is repealed and the following substituted:

Reporting

(5)  If, before the books of the Government of Ontario for a fiscal year are closed, the Minister of Finance becomes aware that, during the fiscal year, the Crown incurred a liability to make a payment out of the Consolidated Revenue Fund that comes due after the end of the fiscal year but the liability cannot be charged to an appropriation for the fiscal year under subsection (3), the Public Accounts for that fiscal year shall include a statement to that effect.

(3)  Paragraph 2 of subsection 11.6 (7) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 8, Schedule B, section 2, is repealed and the following substituted:

2. The liability must be less than or equal to the amount available under the appropriation referred to in paragraph 1 immediately before the books of the Government of Ontario for the fiscal year are closed.

3.  The Act is amended by adding the following sections:

Payment of certain accrued liabilities

11.8  (1)  The Minister of Finance is authorized to make payments out of the Consolidated Revenue Fund during a fiscal year that begins on or after April 1, 2004 in satisfaction of liabilities incurred by the Crown before April 1, 2004 if,

(a) each payment is in satisfaction of part or all of a liability that is payable during the fiscal year in which the payment is made;

(b) each payment is not otherwise authorized by an Act of the Legislature;

(c) the purpose for which each payment is made satisfies the requirements of subsection (2); and

(d) the total of the payments are within the limits described in subsection (2).

Restriction

(2)  The payments authorized by subsection (1) shall only be made for the purposes to which the votes and items in the estimates and supplementary estimates for the fiscal year beginning on April 1, 2003 relate and shall be subject to the maximum amount set out in Column 5 of the following Table opposite the vote and item in Columns 3 and 4:

TABLE
MAXIMUM AMOUNTS

Column 1

Column 2

Column 3

Column 4

Column 5

 

Ministry

Vote

Item

Amount in dollars

1.

Attorney General

306

3

23,413,832

2.

Consumer and Business Services

802

2

440,709

3.

Management Board Secretariat

1805

2

204,883,616

4.

Community Safety and Correctional Services

2604

1

3,346,354

5.

Community Safety and Correctional Services

2606

1

11,784

6.

Transportation

2702

1

3,148,577

Exception

(3)  The estimates shall not include expenditures to be made on or after April 1, 2004 under the authority of this section.

Authorization of certain non-cash expenses

11.9  The Minister of Transportation is authorized to incur non-cash expenses in the amount of $34,560,777 for the purposes set out in Vote 2704, Item 2 of the estimates and supplementary estimates for the fiscal year beginning April 1, 2003.

4.  (1)  Subsection 16.5 (2) of the Act, as enacted by the Statutes of Ontario, 1996, chapter 29, section 3, is amended by adding "or" at the end of clause (a) and by striking out clauses (b) and (c) and substituting the following:

(b) any security, financial agreement or evidence of indebtedness, or class of securities, financial agreements or evidences of indebtedness, authorized in writing by the Minister of Finance for the investment by the ministry named in the authorization of funds from time to time held by that ministry outside the Consolidated Revenue Fund.

(2)  Subsection 16.5 (3) of the Act, as enacted by the Statutes of Ontario, 1996, chapter 29, section 3, is amended by striking out "or for the purpose of an investment pool described in clause (2) (b)" at the end.

Commencement

5.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

Same

(2)  Sections 1, 2 and 3 shall be deemed to have come into force on April 1, 2004.

SCHEDULE 14
AMENDMENT TO THE FINANCIAL SERVICES COMMISSION OF ONTARIO ACT, 1997

1.  Subsection 11 (1) of the Financial Services Commission of Ontario Act, 1997 is amended by striking out the portion before clause (a) and substituting the following:

Statement of priorities

(1)  Commencing with its 2005 fiscal year, the Commission shall, not later than 90 days after the start of each fiscal year, deliver to the Minister and publish in The Ontario Gazette,

. . . . .

Commencement

2.  This Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

SCHEDULE 15
AMENDMENTS TO THE FUEL TAX ACT

1.  Subsections 4.6 (1) and (2) of the Fuel Tax Act, as enacted by the Statutes of Ontario, 1991, chapter 49, section 4, are amended by striking out "a notarial copy" wherever it appears and substituting in each case "a true copy".

2.  Subsection 4.7 (2) of the Act, as enacted by the Statutes of Ontario, 1991, chapter 49, section 4, is amended by striking out "a notarial copy" and substituting "a true copy".

3.  The Act is amended by adding the following section:

Authority to stop and detain commercial fuel-powered motor vehicle

5.1  (1)  A person authorized by the Minister may, without a warrant, stop and detain a commercial fuel-powered motor vehicle and take one or more samples of fuel from the vehicle's fuel tank for the purpose of determining whether the fuel tank of the vehicle contains coloured fuel or unauthorized fuel.

Examination of documents if coloured fuel or unauthorized fuel found

(2)  If a person referred to in subsection (1) has reasonable and probable grounds for believing that a sample taken under that subsection from the fuel tank of a commercial fuel-powered motor vehicle contains coloured fuel or unauthorized fuel, the person may examine the following documents:

1. The driver's licence issued to the driver of the motor vehicle.

2. Any Commercial Vehicle Operator's Certificate issued under the Highway Traffic Act that is held by the operator.

3. Any documents of a type prescribed by the Minister that are in the driver's custody.

4. Any documents in the driver's custody that identify or confirm the identity of the operator or owner of the motor vehicle.

Authority to stop and detain interjurisdictional vehicle

(3)  Any person authorized by the Minister may, without a warrant, stop and detain a motor vehicle if the person has reasonable and probable grounds to believe that the motor vehicle is an interjurisdictional vehicle and may do the following for the purposes of determining whether the operator of the motor vehicle is an interjurisdictional carrier and has complied with section 4.13:

1. Inspect any registration decal on the motor vehicle.

2. Examine the driver's licence issued to the driver of the motor vehicle.

3. Examine any Commercial Vehicle Operator's Certificate issued under the Highway Traffic Act that is held by the operator.

4. Examine any documents of a type prescribed by the Minister that are in the driver's custody.

5. Examine any documents in the driver's custody that identify or confirm the identity of the operator or owner of the motor vehicle.

Offence, failure to stop, etc.

(4)  Every driver of a commercial fuel-powered motor vehicle or interjurisdictional vehicle who does any of the following is guilty of an offence and on conviction is liable to a fine of not less than $200 and not more than $1,000:

1. Fails to comply with a stop sign set up by a person authorized by the Minister under this section to stop the vehicle.

2. Fails to stop or remain stopped when signalled or requested to do so by a person authorized by the Minister under this section to stop and detain the vehicle.

3. Prohibits or otherwise interferes with the taking of a sample of fuel from the vehicle's fuel tank under subsection (1), if the vehicle is a commercial fuel-powered motor vehicle.

4. Fails to produce any document requested or required to be produced under subsection (2) or (3).

5. Operates an interjurisdictional vehicle for which a valid registration decal is required under the regulations without the decal affixed to the vehicle.

Definition

(5)  In this section,

"commercial fuel-powered motor vehicle" means a motor vehicle,

(a) that uses fuel for the purpose of generating power by internal combustion, and

(b) that is a commercial motor vehicle as defined in subsection 1 (1) of the Highway Traffic Act.

4.  (1)  Subsection 8 (6) of the Act, as re-enacted by the Statutes of Ontario, 1991, chapter 49, section 10, and clause 8 (7) (c) of the Act, as enacted by 1991, chapter 49, section 10, are amended by striking out "the notarial copy" wherever it appears and substituting in each case "the true copy".

(2)  Clauses 8 (10) (b) and 8 (14) (a) of the Act, as enacted by the Statutes of Ontario, 1991, chapter 49, section 10, are amended by striking out "a notarial copy" wherever it appears and substituting in each case "a true copy".

5.  Section 13 of the Act, as amended by the Statutes of Ontario, 1991, chapter 49, section 15, 1994, chapter 18, section 2, 1997, chapter 19, section 7, 1998, chapter 30, section 26, 2001, chapter 23, section 96 and 2002, chapter 22, section 81, is amended by adding the following subsections:

Exception, waiver of limitation

(10.2)  Despite subsection (10), the Minister may assess or reassess a person at any time if the person has filed with the Minister a waiver in a form approved by the Minister before the expiry of the time provided in that subsection.

Revocation of waiver

(10.3)  If a person files a waiver under subsection (10.2), the person may file a notice of revocation of the waiver in a form approved by the Minister.

Effect of revocation

(10.4)  If a person files a notice of revocation of the waiver under subsection (10.3), the Minister shall not issue an assessment or reassessment under subsection (10) in reliance on the waiver more than one year after the date on which the notice of revocation is filed.

6.  The Act is amended by adding the following section:

Disclosure of names and addresses

22.1  (1)  The Minister shall disclose the name and address of the following persons for purposes related to the administration of this Act and may impose conditions and restrictions with respect to the disclosure:

1. Each manufacturer who holds a registration certificate under subsection 2.1 (1).

2. Each collector who is designated under subsection 3 (1).

3. Each distributor who is designated under subsection 3.0.1 (1).

4. Each person who is registered under the Act as an importer.

5. Each person who is registered under the Act as an exporter.

6. Each person who is registered under the Act as a dyer.

7. Each person who is registered under the Act as an interjurisdictional transporter.

Exception

(2)  Despite subsection (1), the Minister shall not disclose a person's name or address if, in the Minister's opinion, the disclosure is not necessary for the purposes of this Act.

7.  Section 23 of the Act is repealed and the following substituted:

Interjurisdictional settlement of competing tax claims

23.  (1)  For the purpose of simplifying compliance with this Act and the administration and collection of the tax imposed by this Act, and in order to provide for reciprocal arrangements to settle competing claims for tax on the acquisition and use of fuel by persons carrying on business in more than one jurisdiction, the Minister may enter into an agreement, on such terms and conditions as are considered necessary and expedient, with another jurisdiction providing that tax paid to one jurisdiction on the acquisition there of fuel that is transferred to the other jurisdiction and that becomes liable to tax in the other jurisdiction under this Act or any similar legislation in force in the other jurisdiction may be paid by one jurisdiction to the other in reduction of the liability to the tax arising in the jurisdiction receiving the payment and in lieu of refunding the tax to the person who paid it and who became liable for the similar tax in the other jurisdiction.

Payment for services

(2)  An agreement entered into under subsection (1) may authorize payments to the other jurisdiction for services provided under the agreement and may authorize the other jurisdiction to deduct the amount of the payments from amounts payable to the Minister under the agreement.

Commencement

8.  This Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

SCHEDULE 16
AMENDMENTS TO THE GASOLINE TAX ACT

1.  (1)  Subsection 4.6 (1) of the Gasoline Tax Act, as enacted by the Statutes of Ontario, 1992, chapter 9, section 5, is amended,

(a) by striking out "the original or a notarial copy" and substituting "the original or a true copy"; and

(b) by striking out "the certificate or notarial copy" and substituting "the certificate or true copy".

(2)  Subsection 4.6 (2) of the Act, as enacted by the Statutes of Ontario, 1992, chapter 9, section 5, is amended by striking out "a notarial copy" and substituting "a true copy".

2.  Subsection 4.7 (2) of the Act, as enacted by the Statutes of Ontario, 1992, chapter 9, section 5, is amended by striking out "a notarial copy" and substituting "a true copy".

3.  (1)  Subsection 5 (6) of the Act, as enacted by the Statutes of Ontario, 1992, chapter 9, section 6, is amended by striking out "a notarial copy" and substituting "a true copy".

(2)  Clause 5 (7) (c) of the Act, as enacted by the Statutes of Ontario, 1992, chapter 9, section 6, is amended by striking out "the notarial copy" and substituting "the true copy".

(3)  Clause 5 (10) (b) of the Act, as enacted by the Statutes of Ontario, 1992, chapter 9, section 6, is amended by striking out "a notarial copy" and substituting "a true copy".

(4)  Clause 5 (14) (a) of the Act, as enacted by the Statutes of Ontario, 1992, chapter 9, section 6, is amended by striking out "a notarial copy" and substituting "a true copy".

4.  The Act is amended by adding the following section:

Authority to stop and detain qualified motor vehicle

10.3  (1)  Any person authorized by the Minister may, without a warrant, stop and detain a motor vehicle if the person has reasonable and probable grounds to believe that the motor vehicle is a qualified motor vehicle and may examine the following documents for the purposes of determining whether the operator of the motor vehicle is an interjurisdictional carrier and has complied with section 4.12:

1. The driver's licence issued to the driver of the motor vehicle.

2. Any Commercial Vehicle Operator's Certificate issued under the Highway Traffic Act that is held by the operator.

3. Any documents of a type prescribed by the Minister that are in the driver's custody.

4. Any documents in the driver's custody that identify or confirm the identity of the operator or owner of the motor vehicle.

Offence, failure to stop

(2)  Every driver of a qualified motor vehicle who does any of the following is guilty of an offence and on conviction is liable to a fine of not less than $200 and not more than $1,000:

1. Fails to comply with a stop sign set up by a person authorized by the Minister under this section to stop the vehicle.

2. Fails to stop or remain stopped when signalled or requested to do so by a person authorized by the Minister under this section to stop and detain the vehicle.

3. Fails to produce any document requested or required to be produced under subsection (1).

5.  Section 11 of the Act, as amended by the Statutes of Ontario, 1992, chapter 9, section 7, 1994, chapter 18, section 3, 1996, chapter 10, section 11, 1997, chapter 19, section 8, 1998, chapter 30, section 44, 2001, chapter 23, section 111 and 2002, chapter 22, section 90, is amended by adding the following subsections:

Exception, waiver of limitation

(5.1.1)  Despite subsection (5), the Minister may assess or reassess a person at any time if the person has filed with the Minister a waiver in a form approved by the Minister before the expiry of the time provided in subsection (5).

Revocation of waiver

(5.1.2)  If a person files a waiver under subsection (5.1.1), the person may file a notice of revocation of the waiver in a form approved by the Minister.

Effect of revocation

(5.1.3)  If a person files a notice of revocation of the waiver under subsection (5.1.2), the Minister shall not issue an assessment or reassessment under subsection (5) in reliance on the waiver more than one year after the date on which the notice of revocation is filed.

6.  Subsection 28.1 (1) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 18, section 3 and amended by 2001, chapter 23, section 117, is repealed and the following substituted:

Refund by collector, sale on reserve

(1)  A retailer who is eligible for the purposes of this subsection and sells gasoline to persons exempt from the payment of the tax imposed by this Act under paragraph 3 of subsection 9 (1) of Regulation 533 of the Revised Regulations of Ontario, 1990 (General) may apply to the Minister through the collector from whom the retailer purchased the gasoline for a refund of amounts paid on account of tax by the retailer in respect of the gasoline.

Eligible retailer

(1.1)  A retailer is eligible for the purposes of subsection (1) if the retailer carries on business,

(a) on a reserve, as defined in the Indian Act (Canada); or

(b) in an Indian Settlement located on Crown land, the Indian inhabitants of which are treated by the federal Department of Indian Affairs and Northern Development in the same manner as Indians residing on a reserve.

7.  The Act is amended by adding the following section:

Disclosure of names and addresses

31.1  (1)  The Minister shall disclose the name and address of the following persons for purposes related to the administration of this Act and may impose conditions and restrictions with respect to the disclosure:

1. Each manufacturer who holds a registration certificate under subsection 2.1 (1).

2. Each collector who is designated under subsection 3 (1).

3. Each person who is registered under the Act as an importer.

4. Each person who is registered under the Act as an exporter.

5. Each person who is registered under the Act as an interjurisdictional transporter.

Exception

(2)  Despite subsection (1), the Minister shall not disclose a person's name or address if, in the Minister's opinion, the disclosure is not necessary for the purposes of this Act.

8.  Section 32 of the Act is repealed and the following substituted:

Interjurisdictional settlement of competing tax claims

32.  (1)  For the purpose of simplifying compliance with this Act and the administration and collection of the tax imposed by this Act, and in order to provide for reciprocal arrangements to settle competing claims for tax on the acquisition and use of gasoline, aviation fuel or propane by persons carrying on business in more than one jurisdiction, the Minister may enter into an agreement, on such terms and conditions as are considered necessary and expedient, with another jurisdiction providing that tax paid to one jurisdiction on the acquisition there of gasoline, aviation fuel or propane that is transferred to the other jurisdiction and that becomes liable to tax in the other jurisdiction under this Act or any similar legislation in force in the other jurisdiction may be paid by one jurisdiction to the other in reduction of the liability to the tax arising in the jurisdiction receiving the payment and in lieu of refunding the tax to the person who paid it and who became liable for the similar tax in the other jurisdiction.

Payment for services

(2)  An agreement entered into under subsection (1) may authorize payments to the other jurisdiction for services provided under the agreement and may authorize the other jurisdiction to deduct the amount of the payments from amounts payable to the Minister under the agreement.

9.  Subsection 33 (2) of the Act, as amended by the Statutes of Ontario, 1991, chapter 13, section 8, 1992, chapter 9, section 22, 1996, chapter 10, section 15, 1997, chapter 19, section 8, 2001, chapter 23, section 119 and 2002, chapter 22, section 93, is amended by adding the following clause:

(k) governing the manner in which a refund referred to in subsection 28.1 (4) may be made.

Commencement

10.  This Schedule comes into force the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

SCHEDULE 17
AMENDMENT TO THE GO TRANSIT ACT, 2001

1.  Clause 35 (1.1) (b) of the GO Transit Act, 2001, as enacted by the Statutes of Ontario, 2003, chapter 7, section 8, is repealed and the following substituted:

(b) December 31, 2005.

Commencement

2.  This Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

SCHEDULE 18
AMENDMENTS TO THE HIGHWAY TRAFFIC ACT

1.  Subsection 7.2 (1) of the Highway Traffic Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 98, is amended by striking out "three years" and substituting "five years".

2.  Section 7.7 of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 98, is repealed and the following substituted:

Interest

Application

7.7  (1)  This section applies with respect to registration years that end on or after December 9, 2002.

Interest payable on unpaid fees and penalties

(2)  Interest is payable to the Minister on the amount of any unpaid fees and penalties owed to the Minister and on the amount of any unpaid fees and taxes owed to another member of the International Registration Plan and collected by Ontario pursuant to the Plan.

Same

(3)  Interest is payable for the period commencing on the day after the last day of the registration year for which the unpaid amount is owed until the date on which the unpaid amount, including interest, is paid.

Interest rate

(4)  Interest is to be calculated at the rate or rates determined in accordance with the regulations.

Waiver of interest

(5)  Despite subsection (2), the Minister may exempt a person from payment of part or all of the interest owing in respect of a registration year if the Minister is of the opinion that owing to special circumstances it is inequitable to charge and collect the whole amount of the interest.

Decision final

(6)  The Minister's decision under subsection (5) about whether to exempt a person from the payment of interest and the amount of the exemption, if any, is final and not subject to review.

Transition

(7)  Interest in respect of a period before the date on which the Budget Measures Act (Fall), 2004 receives Royal Assent is to be determined in accordance with this section as it reads on and after that date, and not in accordance with this section as it read before that date.

3.  (1)  Clause 7.15 (1) (d) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 98, is repealed and the following substituted:

(d) governing the calculation of interest for the purposes of section 7.7;

(2)  Section 7.15 of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 98, is amended by adding the following subsection:

Retroactive

(3)  A regulation made under clause (1) (d) is, if it so provides, effective with reference to a period before it was filed but not earlier than December 9, 2002.

Commencement

4.  This Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

SCHEDULE 19
AMENDMENTS TO THE INCOME TAX ACT

1.  (1)  Subsection 4.0.1 (23) of the Income Tax Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 51 and amended by 2004, chapter 16, section 3, is amended by striking out "taxation year" in the portion before the formula and substituting "taxation year ending before January 1, 2004".

(2)  Section 4.0.1 of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 51 and amended by 2001, chapter 8, section 37 and 2004, chapter 16, section 3, is amended by adding the following subsection:

Medical expense credit, 2004 and subsequent years

(23.1)  The amount of an individual's medical expense credit for a taxation year ending after December 31, 2003 is the amount calculated using the formula,

A × [(B - C) + D]

in which,

"A" is the lowest tax rate for the year,

"B" is the total of the individual's medical expenses in respect of the individual, the individual's spouse, the individual's common-law partner or a child of the individual who has not attained the age of 18 years before the end of the taxation year that are included in determining the individual's medical expense credit for the year under subsection 118.2 (1) of the Federal Act,

"C" is the lesser of $1,821 and 3 per cent of the individual's income for the year, and

"D" is the total of all amounts each of which,

(a) is in respect of a dependant of the individual, within the meaning assigned by subsection 118 (6) of the Federal Act, other than a child of the individual who has not attained the age of 18 years before the end of the taxation year, and

(b) is, in respect of the dependant, the lesser of $5,000 and the amount that would be determined by the formula "E - F" in subsection 118.2 (1) of the Federal Act, if the dollar amount set out in the description of "C" in this subsection were substituted for the dollar amount set out in the description of "F" in subsection 118.2 (1) of the Federal Act.

2.  (1)  Section 4.0.2 of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 52 and amended by 2001, chapter 8, section 38, 2003, chapter 7, section 11 and 2004, chapter 16, section 3, is repealed and the following substituted:

Annual adjustment

4.0.2  (1)  Subject to subsection (6), each amount expressed in dollars under the following provisions shall be adjusted in accordance with this section for each taxation year ending after December 31, 2000:

1. Subsections 3 (1), 4 (3), 4.0.1 (2) to (6), (8), (10), (11), (11.1), (18), (19), (20), (23) and 7 (2.4) and (2.5).

2. Paragraphs 118.2 (2) (b.1), (l.5) and (l.7) of the Federal Act, as they apply in determining the amount of an individual's medical expense credit deductible under paragraph 17 of subsection 4 (3.1).

Calculation of adjusted amount

(2)  Each amount referred to in subsection (1) shall be adjusted to the amount determined using the formula,

A + [A × (B/C - 1)]

in which,

"A" is the amount that would have been used for the previous taxation year if it had not been rounded to a whole dollar,

"B" is the Consumer Price Index for the 12-month period that ended on September 30 of the previous year, and

"C" is the Consumer Price Index for the 12-month period immediately preceding the 12-month period mentioned in the description of "B".

Same

(3)  For the purposes of subsection (2), the amount of "(B/C - 1)" shall be adjusted each year in such manner as may be prescribed and rounded to the nearest thousandth or, where the result obtained is equidistant, to the higher thousandth.

Rounding

(4)  Where an amount as adjusted under this section is not a multiple of one dollar, it shall be rounded to the nearest multiple of one dollar or, where it is equidistant, to the higher dollar.

Consumer Price Index

(5)  In this section, the Consumer Price Index for any 12-month period is the result arrived at by,

(a) aggregating the Consumer Price Index for Ontario as published by Statistics Canada under the authority of the Statistics Act (Canada), adjusted in such manner as is prescribed, for each month in that period;

(b) dividing the aggregate obtained under clause (a) by 12; and

(c) rounding the result obtained under clause (b) to the nearest one-thousandth or, where the result obtained is equidistant from two consecutive thousandths, to the higher thousandth.

Exceptions

(6)  The following amounts shall not be adjusted under this section:

1. The dollar amounts referred to in subsections 4.0.1 (5), (6), (11.1) and (18), as those subsections apply for a taxation year ending after December 31, 2000 and before January 1, 2002.

2. The dollar amounts referred to in a paragraph of subsection 3 (1) that are applicable for a taxation year ending before January 1, 2005.

3. The dollar amounts referred to in subsections 7 (2.4) and (2.5) that are applicable for a taxation year ending before January 1, 2005.

Regulations

(7)  The Lieutenant Governor in Council may make regulations prescribing rules governing the adjustment of dollar amounts in provisions of this Act not listed in subsection (1) or in provisions of the Federal Act that apply in determining amounts for the purposes of this Act.

(2)  Paragraph 1 of subsection 4.0.2 (1) of the Act, as re-enacted by subsection (1), is repealed and the following substituted:

1. Subsections 3 (1), 4 (3), 4.0.1 (2) to (6), (8), (10), (11), (11.1), (18), (19), (20), (23), (23.1) and 7 (2.4) and (2.5).

(3)  Subsection 4.0.2 (6) of the Act, as re-enacted by subsection (1), is amended by adding the following paragraph:

4. The dollar amounts referred to in subsection 4.0.1 (23.1) that apply for a taxation year ending before January 1, 2005.

3.  Section 4.1 of the Act, as re-enacted by the Statutes of Ontario, 2000, chapter 10, section 14 and amended by 2001, chapter 23, section 129, 2002, chapter 22, section 106 and 2004, chapter 16, section 3, is repealed and the following substituted:

Qualifying environmental trust

4.1  The amount of tax payable under section 2.1 by a qualifying environmental trust for a taxation year is equal to the product obtained by multiplying the amount of the trust's income for the taxation year that is subject to tax under Part XII.4 of the Federal Act by the percentage that would be the specified basic rate of a corporation for the taxation year as defined in subsection 38 (2) of the Corporations Tax Act.

4.  (1)  Subsection 7 (2.4) of the Act, as enacted by the Statutes of Ontario, 2001, chapter 23, section 130 and amended by 2002, chapter 22, section 107 and 2004, chapter 16, section 3, is repealed and the following substituted:

Basic reduction, 2002 and subsequent years

(2.4)  The basic reduction for a taxation year, commencing with 2002, is the following amount:

1. For the 2002 taxation year, $161.

2. For the 2003 taxation year, $181.

3. For the 2004 taxation year, $186.

4. For a taxation year after the 2004 taxation year, the amount determined by adjusting the basic reduction for the previous taxation year in accordance with section 4.0.2.

(2)  Subsection 7 (2.5) of the Act, as enacted by the Statutes of Ontario, 2001, chapter 23, section 130 and amended by 2004, chapter 16, section 3, is repealed and the following substituted:

Eligible amount, 2002 and subsequent taxation years

(2.5)  The eligible amount for a dependant described in subsection (2.2) for a taxation year, commencing with the 2002 taxation year, is the following amount:

1. For the 2002 taxation year, $328.

2. For the 2003 taxation year, $334.

3. For the 2004 taxation year, $343.

4. For a taxation year after the 2004 taxation year, the amount determined by adjusting the eligible amount for the dependant for the previous taxation year in accordance with section 4.0.2.

(3)  The definition of "tax otherwise payable" in subsection 7 (3) of the Act, as re-enacted by the Statutes of Ontario, 1993, chapter 29, section 5 and amended by 2004, chapter 16, section 3, is repealed and the following substituted:

"tax otherwise payable" for a taxation year means the amount of tax payable under this Act for the taxation year before any deduction permitted by subsection 4 (6) or under section 8 or this section. ("impôt payable par ailleurs")

(4)  Subsection (5) applies only if Bill 106 (Budget Measures Act, 2004 (No. 2), introduced on June 21, 2004) receives Royal Assent.

(5)  The definition of "tax otherwise payable" in subsection 7 (3) of the Act, as re-enacted by subsection (3) and by section 8 of Bill 106, is repealed and the following substituted:

"tax otherwise payable" for a taxation year means the amount of tax payable under this Act for the taxation year, other than the Ontario Health Premium, before any deduction permitted by subsection 4 (6) or under section 8 or this section. ("impôt payable par ailleurs")

5.  (1)  Clause (c) of the definition of "individual" in subsection 8 (1) of the Act, as amended by the Statutes of Ontario, 1992, chapter 18, section 55, 1993, chapter 29, section 6, 1996, chapter 1, Schedule C, section 8, 1996, chapter 29, section 9, 1997, chapter 43, Schedule B, section 4, 1998, chapter 34, section 69, 2001, chapter 23, section 131 and 2004, chapter 16, section 3, is amended by striking out "(15.5) and (15.6)" in the portion before subclause (i) and substituting "(15.5), (15.6) and (16)".

(2)  Clause (c) of the definition of "individual" in subsection 8 (1) of the Act, as amended by the Statutes of Ontario, 1992, chapter 18, section 55, 1993, chapter 29, section 6, 1996, chapter 1, Schedule C, section 8, 1996, chapter 29, section 9, 1997, chapter 43, Schedule B, section 4, 1998, chapter 34, section 69, 2001, chapter 23, section 131 and 2004, chapter 16, section 3, is amended by striking out "(15.6) and (16)" and substituting "(15.6), (16) and (16.1)".

(3)  Subsection 8 (3.1) of the Act, as enacted by the Statutes of Ontario, 1992, chapter 25, section 3 and amended by 1993, chapter 29, section 6, 2001, chapter 23, section 131, 2003, chapter 4, section 11, 2003, chapter 7, section 12 and 2004, chapter 16, section 3, is amended by striking out "$1,000" in the portion before clause (a) and substituting "$1,125".

(4)  Subclause 8 (3.1) (a) (i) of the Act, as re-enacted by the Statutes of Ontario, 2003, chapter 7, section 12 and amended by 2004, chapter 16, section 3, is amended by striking out "$500" and substituting "$625".

(5)  Subsection 8 (15.1) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule B, section 4 and amended by 2004, chapter 16, section 3, is repealed and the following substituted:

Graduate transitions tax credit

(15.1)  An individual who is an eligible employer for a taxation year ending after December 31, 1997 and before January 1, 2005 may deduct from tax otherwise payable under this Act for the taxation year an amount not exceeding the employer's graduate transitions tax credit determined under section 8.1 for the taxation year.

(6)  Subsection 8 (15.2) of the Act, as re-enacted by the Statutes of Ontario, 1998, chapter 34, section 69 and amended by 2004, chapter 16, section 3, is repealed and the following substituted:

Workplace child care tax credit

(15.2)  An individual who is an eligible individual under section 8.3 for a taxation year ending after December 31, 1997 and before January 1, 2005 may deduct from tax otherwise payable under this Act for the taxation year an amount not exceeding the amount of his or her workplace child care tax credit determined under section 8.3 for the taxation year.

(7)  Subsection 8 (15.3) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 34, section 69 and amended by 2004, chapter 16, section 3, is repealed and the following substituted:

Workplace accessibility tax credit

(15.3)  An individual who is an eligible employer under section 8.4 for a taxation year ending after December 31, 1997 and before January 1, 2005 may deduct from tax otherwise payable under this Act for the taxation year an amount not exceeding the amount of his or her workplace accessibility tax credit determined under section 8.4 for the taxation year.

(8)  Subsection 8 (15.4) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 55 and amended by 2004, chapter 16, section 3, is repealed and the following substituted:

Educational technology tax credit

(15.4)  An individual who is an eligible individual under section 8.4.1 for a taxation year ending after December 31, 1999 and before January 1, 2005 may deduct from the amount of tax otherwise payable under this Act for the taxation year an amount not exceeding the amount of his or her educational technology tax credit determined under that section for the taxation year.

(9)  Section 8 of the Act, as amended by the Statutes of Ontario, 1992, chapter 18, section 55, 1992, chapter 25, section 3, 1993, chapter 29, section 6, 1994, chapter 17, section 99, 1996, chapter 1, Schedule C, section 8, 1996, chapter 24, section 13, 1996, chapter 29, section 9, 1997, chapter 19, section 9, 1997, chapter 43, Schedule B, section 4, 1998, chapter 5, section 3, 1998, chapter 9, section 81, 1998, chapter 34, section 69, 1999, chapter 9, section 120, 2000, chapter 42, section 55, 2001, chapter 8, section 40, 2001, chapter 23, section 131, 2002, chapter 22, section 108, 2003, chapter 4, section 11, 2003, chapter 7, section 12 and 2004, chapter 16, section 3, is amended by adding the following subsection:

Apprenticeship training tax credit

(16.1)  An individual who is an eligible employer under section 8.4.5 may deduct from the amount of tax otherwise payable under this Act for a taxation year ending after May 18, 2004 an amount not exceeding the amount of his or her apprenticeship training tax credit determined under section 8.4.5 for the taxation year.

(10)  Paragraph 2 of subsection 8 (17) of the Act, as re-enacted by the Statutes of Ontario, 2001, chapter 23, section 131 and amended by 2002, chapter 22, section 108 and 2004, chapter 16, section 3, is amended by striking out "and (16)" and substituting "(16) and (16.1)".

(11)  Paragraph 3 of subsection 8 (17) of the Act, as re-enacted by the Statutes of Ontario, 2001, chapter 23, section 131 and amended by 2002, chapter 22, section 108 and 2004, chapter 16, section 3, is amended by striking out "and (16)" and substituting "(16) and (16.1)".

(12)  Paragraph 7 of subsection 8 (17) of the Act, as re-enacted by the Statutes of Ontario, 2001, chapter 23, section 131 and amended by 2002, chapter 22, section 108 and 2004, chapter 16, section 3, is amended by striking out "and (16)" and substituting "(16) and (16.1)".

(13)  Paragraph 8 of subsection 8 (17) of the Act, as re-enacted by the Statutes of Ontario, 2001, chapter 23, section 131 and amended by 2002, chapter 22, section 108 and 2004, chapter 16, section 3, is amended by striking out "and (16)" and substituting "(16) and (16.1)".

6.  (1)  Paragraph 2 of subsection 8.1 (2) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule B, section 5 and amended by 2004, chapter 16, section 3, is amended by striking out "commenced after December 31, 1997" and substituting "commenced after December 31, 1997 and before July 5, 2004".

(2)  Paragraph 3 of subsection 8.1 (2) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule B, section 5 and amended by 2004, chapter 16, section 3, is amended by striking out "commenced after December 31, 1997" and substituting "commenced after December 31, 1997 and before July 5, 2004".

(3)  Paragraph 4 of subsection 8.1 (2) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule B, section 5 and amended by 2004, chapter 16, section 3, is amended by striking out "commenced after December 31, 1997" and substituting "commenced after December 31, 1997 and before July 5, 2004".

(4)  Clause 8.1 (7) (a) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule B, section 5 and amended by 2004, chapter 16, section 3, is amended by striking out "commenced after May 6, 1997" and substituting "commenced after May 6, 1997 and before July 5, 2004".

7.  (1)  Clause 8.3 (2) (a) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 34, section 72 and amended by 2004, chapter 16, section 3, is amended by striking out "after May 5, 1998" in the portion before subclause (i) and substituting "after May 5, 1998 and before January 1, 2005".

(2)  Clause 8.3 (2) (b) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 34, section 72 and amended by 2004, chapter 16, section 3, is amended by striking out "after May 5, 1998" in the portion before subclause (i) and substituting "after May 5, 1998 and before January 1, 2005".

8.  (1)  Paragraph 1 of subsection 8.4 (1) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 34, section 73 and amended by 2004, chapter 16, section 3, is repealed and the following substituted:

1. The amount, if any, incurred by the employer in the taxation year but after July 1, 1998 and before January 1, 2005 to provide during a job interview in Ontario the support services of a sign language interpreter, an intervenor, a note-taker, a reader or an attendant.

(2)  Subsection 8.4 (4) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 34, section 73 and amended by 2004, chapter 16, section 3, is amended by striking out "after July 1, 1998" in the portion before paragraph 1 and substituting "after July 1, 1998 and before January 1, 2005".

(3)  Clause 8.4 (6) (c) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 34, section 73 and amended by 2004, chapter 16, section 3, is repealed and the following substituted:

(c) is employed by the employer or the partnership for a period of at least three months before January 1, 2005;

9.  Subsection 8.4.1 (1) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 56 and amended by 2004, chapter 16, section 3, is amended by striking out "tax credit for a taxation year" and substituting "tax credit for a taxation year ending after May 2, 2000 and before January 1, 2005".

10.  The Act is amended by adding the following section:

Apprenticeship training tax credit

8.4.5  (1)  The amount of an eligible employer's apprenticeship training tax credit for a taxation year is the total of all amounts each of which is calculated under subsection (3) in respect of the employer's eligible expenditures under this section for the taxation year for each apprentice employed in a qualifying apprenticeship.

Eligible employer

(2)  For the purposes of this section, an individual is an eligible employer in respect of a taxation year if he or she,

(a) carries on business through a permanent establishment in Ontario in the taxation year; and

(b) is not exempt from tax under section 6.

Calculation of credit

(3)  The amount referred to in subsection (1) in respect of an eligible employer's eligible expenditures for a taxation year for an apprentice employed in a qualifying apprenticeship is the total of "A" and "B" where,

"A" is the lesser of,

(a) the product obtained by multiplying the employer's specified percentage for the taxation year by the employer's eligible expenditures made during the taxation year for the apprentice employed in the qualifying apprenticeship, and

(b) the amount calculated using the formula,

$5,000 × C/D

in which,

"C" is the total number of days after May 18, 2004 and before January 1, 2011 that the apprentice was employed by the employer during the taxation year, and

"D" is 365 days or, if the taxation year includes February 29, 366 days, and

"B" is the amount calculated by multiplying the amount of government assistance repaid by the employer in the taxation year by the employer's specified percentage for the taxation year in which the government assistance was received, to the extent that the repayment does not exceed the amount of the government assistance previously received by the employer in respect of the qualifying apprenticeship that,

(a) has not been repaid in a prior taxation year, and

(b) can reasonably be considered to have reduced the amount of the apprenticeship training tax credit that would otherwise have been allowed to the employer under subsection 8 (16.1) in respect of the qualifying apprenticeship.

Specified percentage

(4)  An employer's specified percentage for a taxation year is the following:

1. 25 per cent if the total of all salaries or wages paid by the employer in the previous taxation year is $600,000 or more.

2. The percentage determined under subsection (5) if the total of all salaries or wages paid by the employer in the previous taxation year is greater than $400,000 but less than $600,000.

3. 30 per cent in any other case.

Same

(5)  The percentage referred to in paragraph 2 of subsection (4) is calculated by adding 25 per cent and the percentage calculated using the formula,

5% × [1 - (E/200,000)]

in which,

"E" is the total amount of salaries and wages paid by the employer in the previous taxation year that is in excess of $400,000.

Qualifying apprenticeship

(6)  For the purposes of this section, a qualifying apprenticeship is an apprenticeship that would be a qualifying apprenticeship for the purposes of section 43.13 of the Corporations Tax Act if the employer of the apprentice were a corporation rather than an individual.

End of apprenticeship

(7)  For the purposes of this section, a qualifying apprenticeship shall be deemed to end on the earlier of the date on which the apprentice is entitled to receive the appropriate certificate under the Apprenticeship and Certification Act, 1998 or the Trades Qualification and Apprenticeship Act or the date, if any, on which the training agreement or contract of apprenticeship is cancelled by the Ministry of Training, Colleges and Universities.

Eligible expenditures

(8)  Subject to subsections (10) and (11), the amount paid by an employer to an apprentice employed in a qualifying apprenticeship is an eligible expenditure for a taxation year if all of the following conditions are satisfied:

1. The expenditure is on account of salary or wages paid to an employee who reports for work at a permanent establishment of the employer in Ontario.

2. Subdivision a of Division B of Part I of the Federal Act requires the amount paid to the apprentice to be included in the apprentice's income from a source that is an office or employment.

3. The expenditure is in respect of a qualifying apprenticeship and is paid after May 18, 2004 and before January 1, 2011.

4. The apprentice is in the first 36 months of the apprenticeship training program.

Same

(9)  Subject to subsections (10) and (11), such other expenditures as may be prescribed are eligible expenditures of an employer for a taxation year if the prescribed conditions are satisfied.

Exception

(10)  An expenditure made by an employer in respect of a qualifying apprenticeship is not an eligible expenditure,

(a) if the apprentice serves the apprenticeship with a person other than the employer; or

(b) to the extent that the amount of the expenditure would not be considered to be reasonable in the circumstances by persons dealing with each other at arm's length.

Total eligible expenditures

(11)  The total of eligible expenditures made by an employer in respect of a qualifying apprenticeship in a taxation year is calculated using the formula,

F - G

in which,

"F" is the sum of the amounts determined under subsections (8) and (9), and

"G" is the amount of all government assistance, if any, that the employer has received, is entitled to receive or may reasonably be expected to be entitled to receive in respect of the eligible expenditures at the time the employer's return for the taxation year is required to be delivered under this Act.

Partnerships

(12)  If an eligible employer is a member of a partnership at the end of a taxation year and if the partnership incurs, in a fiscal period of the partnership that ends in the taxation year, an expenditure that would be included in computing the apprenticeship training tax credit of the employer if the expenditure had been incurred by the employer, the eligible employer who is a member of the partnership may include, in determining the amount of his or her apprenticeship training tax credit, that portion of the expenditure that may reasonably be attributed to him or her.

Limited partner

(13)  Subsection (12) does not apply if the eligible employer is a limited partner in the partnership.

Definition

(14)  In this section,

"government assistance" means assistance from a government, municipality or other public authority in any form, including a grant, subsidy, forgivable loan, deduction from tax or investment allowance, but does not include an apprenticeship training tax credit under subsection 8 (16.1) or any other amount that may be prescribed.

11.  (1)  Subsection 8.6 (1.1) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 57 and amended by 2004, chapter 16, section 3, is amended by striking out "section 8.7" in the portion before clause (a) and substituting "section 8.7 or 8.9".

(2)  Subsection 8.6 (2) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 34, section 74 and amended by 2000, chapter 42, section 57 and 2004, chapter 16, section 3, is amended by striking out "this section and section 8.5 or 8.7" in the portion before clause (a) and substituting "this section or section 8.5, 8.7 or 8.9".

12.  (1)  Subsection 8.7 (1) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 58 and amended by 2001, chapter 23, section 134 and 2004, chapter 16, section 3, is amended by striking out "on account of tax payable under this Act for a taxation year" in the portion before paragraph 1 and substituting "on account of tax payable under this Act for a taxation year ending before January 1, 2010".

(2)  The definition of "A" in subsection 8.7 (2) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 58 and amended by 2004, chapter 16, section 3, is repealed and the following substituted:

"A" is the amount of tax payable under this Act by the individual for the taxation year before any refund under this section or tax incentive under section 8.9, and

(3)  Subsection 8.7 (14.1) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 111 and amended by 2004, chapter 16, section 3, is amended by striking out "after December 21, 2000" in the portion before clause (a) and substituting "after December 21, 2000 and before May 18, 2004".

(4)  Clause (a) of the definition of "eligible stock option agreement" in subsection 8.7 (41) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 58 and amended by 2004, chapter 16, section 3, is amended by striking out "after the day the Balanced Budgets for Brighter Futures Act, 2000 receives Royal Assent" and substituting "after December 21, 2000 and before May 18, 2004".

13.  The definition of "Authority" in subsection 8.9 (1) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 112 and amended by 2004, chapter 16, section 3, is repealed and the following substituted:

"Authority" means the Ontario Strategic Infrastructure Financing Authority continued by subsection 2 (1) of the Ontario Strategic Infrastructure Financing Authority Act, 2002; ("Office")

14.  Subsection 10 (1.1) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 59 and amended by 2004, chapter 16, section 3, is repealed and the following substituted:

Application of s. 152 of the Federal Act

(1.1)  Subsection 152 (1) of the Federal Act applies to a refund under section 8.7 and a tax incentive under section 8.9.

15.  (1)  Subsection 22.1 (1) of the Act, as re-enacted by the Statutes of Ontario, 2000, chapter 42, section 63 and amended by 2004, chapter 16, section 3, is repealed and the following substituted:

Objection, deemed overpayment

(1)  An individual may object to a determination made under section 8.5 or 8.7 or subsection 10 (4) or the determination of a tax incentive under section 8.9 by serving on the Provincial Minister a notice of objection in a form approved by the Provincial Minister.

(2)  Subsection 22.1 (3) of the Act, as re-enacted by the Statutes of Ontario, 2000, chapter 42, section 63 and amended by 2004, chapter 16, section 3, is repealed and the following substituted:

Issues on objection

(3)  In an objection under subsection (1), the individual may raise issues about the following matters only:

1. Whether the individual is entitled to a refund under section 8.7 or a tax incentive under section 8.9.

2. The residence of the individual, if the subject of the objection is an Ontario child care supplement for working families under section 8.5, a refund under section 8.7 or a tax incentive under section 8.9.

3. The calculation of the amount to which the individual is entitled under section 8.5, 8.7 or 8.9 or the determination of amounts used in the calculation, but not the calculation of an amount determined under the Federal Act or determined by reference to an amount determined under the Federal Act.

16.  (1)  Clause 43 (a) of the Act, as re-enacted by the Statutes of Ontario, 1998, chapter 34, section 83 and amended by 2000, chapter 42, section 64 and 2004, chapter 16, section 3, is amended by adding "or regulations made under section 8.9" after "under section 8.5, 8.6 or 8.7".

(2)  Subclause 43 (b) (iii) of the Act, as re-enacted by the Statutes of Ontario, 2000, chapter 42, section 64 and amended by 2004, chapter 16, section 3, is amended by striking out "section 8.5 or 8.7" and substituting "section 8.5, 8.7 or 8.9".

(3)  Clause 43 (f) of the Act, as re-enacted by the Statutes of Ontario, 1998, chapter 34, section 83 and amended by 2000, chapter 42, section 64 and 2004, chapter 16, section 3, is repealed and the following substituted:

(f) a fine of not less than 50 per cent and not more than 200 per cent of the amount of the tax that was sought to be evaded, the amount of the tax credit sought under section 8 or the amount sought under section 8.5, 8.7 or 8.9, as applicable; or

17.  (1)  Subsection 49 (5) of the Act, as re-enacted by the Statutes of Ontario, 2000, chapter 42, section 65 and amended by 2004, chapter 16, section 3, is repealed and the following substituted:

Exception

(5)  Subsections (3) and (4) do not apply to the employment of powers, the exercise of discretion or the performance of duties under any section of this Act relating to the following or to any proceedings in connection with the following:

1. An Ontario child care supplement for working families under section 8.5.

2. A refund under section 8.7.

3. A tax incentive under section 8.9.

(2)  Section 49 of the Act, as amended by the Statutes of Ontario, 1993, chapter 29, section 2, 1999, chapter 9, section 131, 2000, chapter 42, section 65 and 2004, chapter 16, section 3, is amended by adding the following subsection:

Payment of fees under collection agreement

(6)  All fees and other amounts payable to the Government of Canada under a collection agreement are a charge upon and payable out of the Consolidated Revenue Fund.

Commencement

18.  (1)  Subject to subsections (2) to (9), this Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

Same

(2)  Section 1 and subsections 2 (2) and (3) come into force on a day to be named by proclamation of the Lieutenant Governor.

Same

(3)  Subsection 2 (1) shall be deemed to have come into force on January 1, 2002.

Same

(4)  Subsections 4 (1) and (2), 5 (5), (6), (7) and (8) and sections 7, 8 and 9 come into force on January 1, 2005.

Same

(5)  Subsections 4 (3), (4) and (5) and 5 (3) and (4) shall be deemed to have come into force on January 1, 2004.

Same

(6)  Subsection 5 (1) shall be deemed to have come into force on June 18, 2002.

Same

(7)  Subsections 5 (2), (9), (10), (11), (12) and (13), section 10 and subsections 12 (1), (3) and (4) shall be deemed to have come into force on May 18, 2004.

Same

(8)  Section 6 shall be deemed to have come into force on July 5, 2004.

Same

(9)  Section 11, subsection 12 (2), sections 14, 15 and 16 and subsection 17 (1) shall be deemed to have come into force on March 27, 2003.

SCHEDULE 20
AMENDMENTS TO THE INSURANCE ACT

1.  The definition of "due application" in section 1 of the Insurance Act is repealed and the following substituted:

"due application" includes such information, evidence and material as the Superintendent requires to be furnished and the payment of the fees established by the Minister in respect of any application, certificate or document required or issued by virtue of this Act; ("demande régulière")

2.  Subsection 23 (2) of the Act, as amended by the Statutes of Ontario, 1997, chapter 19, section 10, is amended by striking out "such fees as are approved by the Minister" and substituting "such fees as may be established by the Minister".

3.  Subsection 28 (2) of the Act is amended by striking out "prescribed fee" and substituting "fee established by the Minister".

4.  Subsection 102 (1) of the Act, as amended by the Statutes of Ontario, 1994, chapter 11, section 337 and 1997, chapter 19, section 10, is amended by striking out "sections 370 and 374" in the portion before clause (a) and substituting "section 370".

5.  Section 105 of the Act is amended by striking out "the form prescribed by the regulations" and substituting "the form approved by the Superintendent".

6.  Subsection 121 (1) of the Act, as amended by the Statutes of Ontario, 1993, chapter 10, section 12, 1994, chapter 11, section 338, 1996, chapter 21, section 14, 1997, chapter 19, section 10, 1997, chapter 28, section 107, 1999, chapter 12, Schedule I, section 4, 2000, chapter 26, Schedule G, section 1, 2002, chapter 18, Schedule H, section 4 and 2002, chapter 22, section 114, is amended by adding the following paragraph:

1. prescribing limitations and conditions for the purpose of subsection 43 (4);

7.  The definition of "nuclear energy hazard" in subsection 255 (1) of the Act is repealed and the following substituted:

"nuclear energy hazard" means the radio-active, toxic, explosive or other hazardous properties of nuclear substances under the Nuclear Safety and Control Act (Canada).

8.  (1)  Subsections 393 (3) and (6) of the Act are amended by striking out "the prescribed fee" wherever it appears and substituting in each case "the fee established by the Minister".

(2)  Subsection 393 (11) of the Act, as amended by the Statutes of Ontario, 1994, chapter 11, section 339, is repealed and the following substituted:

Term of licence

(11)  A licence issued under this section,

(a) expires at such time as the regulations provide unless it is automatically suspended by notice under subsection (6) or is revoked or suspended by the Superintendent; and

(b) may, in the discretion of the Superintendent, be renewed upon due application in a form approved by the Superintendent that includes such information as the Superintendent may require, accompanied by a certificate of agency appointment of a licensed insurer and payment of the fee established by the Minister.

9.  Subsections 397 (1) and (4) of the Act are amended by striking out "the prescribed fee" wherever it appears and substituting in each case "the fee established by the Minister".

10.  Subsection 399 (2) of the Act is amended by striking out "the prescribed fee" and substituting "the fee established by the Minister".

11.  Subsection 400 (7) of the Act is amended by striking out "the prescribed fee" and substituting "the fee established by the Minister".

12.  (1)  Subsection 417.0.1 (2) of the Act, as enacted by the Statutes of Ontario, 2004, chapter 11, section 1, is amended by adding the following paragraph:

4. An ambulance.

(2)  Subsection 417.0.1 (5) of the Act, as enacted by the Statutes of Ontario, 2004, chapter 11, section 1, is amended by adding the following definition:

"ambulance" means an ambulance as defined in subsection 1 (1) of the Ambulance Act; ("ambulance")

13.  Regulation 666 of the Revised Regulations of Ontario, 1990, made under the Insurance Act, is revoked.

Commencement

14.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

Same

(2)  Sections 6 and 13 come into force on the day subsection 4 (1) of Schedule H to the Government Efficiency Act, 2002 comes into force.

SCHEDULE 21
AMENDMENTS TO THE LAND TRANSFER TAX ACT

1.  (1)  The definition of "collector" in subsection 1 (1) of the Land Transfer Tax Act is repealed.

(2)  Subsection 1 (1) of the Act, as amended by the Statutes of Ontario, 1994, chapter 18, section 4, 1996, chapter 18, section 7, 1996, chapter 29, section 16, 1997, chapter 10, section 8, 1999, chapter 6, section 32, 2000, chapter 42, section 67 and 2002, chapter 22, section 134, is amended by adding the following definitions:

"designated collector" means a person designated under subsection 5.1 (1); ("percepteur désigné")

"land registrar" means a land registrar to whom a conveyance is tendered for registration; ("registrateur")

(3)  Section 1 of the Act, as amended by the Statutes of Ontario, 1994, chapter 18, section 4, 1996, chapter 18, section 7, 1996, chapter 29, section 16, 1997, chapter 10, section 8, 1998, chapter 5, section 29, 1999, chapter 6, section 32, 2000, chapter 42, section 67 and 2002, chapter 22, section 134, is amended by adding the following subsection:

Tendering for registration

(1.1)  For the purposes of this Act, a conveyance that is an electronic document is tendered for registration when it is submitted for registration in accordance with Part III of the Land Registration Reform Act, and a conveyance that is not an electronic document is tendered for registration when it is presented for registration at a land registry office.

2.  (1)  Subsection 2 (1) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 10, section 9, is amended by striking out the portion before clause (a) and substituting the following:

Tax

(1)  Every person who tenders for registration in Ontario a conveyance by which any land is conveyed to or in trust for a transferee shall pay when the conveyance is tendered for registration or before it is tendered for registration,

. . . . .

(2)  Subsection 2 (7) of the Act is amended by striking out "where the Minister or a collector is satisfied that" and substituting "if the Minister or a land registrar is satisfied that".

(3)  Subsection 2 (9) of the Act is repealed and the following substituted:

Minister's certification, electronic registration

(9)  A conveyance tendered for registration as an electronic document may be submitted for registration without the payment of tax and without the information listed in paragraphs 1 to 4 of subsection 5 (1) if the following conditions are satisfied:

1. The Minister or a person authorized in writing by the Minister is satisfied that no tax is payable, that all tax has been paid or that security for the payment of the tax has been furnished to the Minister in a form and of a kind that is acceptable to the Minister.

2. The Minister or authorized person has indicated to the Director of Land Registration appointed under subsection 6 (1) of the Registry Act, in a manner approved by the Director, that the tax has been paid or that no tax is payable.

Same, other registration

(10)  A conveyance tendered for registration otherwise than as an electronic document may be registered without the payment of tax and without the production of the affidavit required by section 5 if the following conditions are satisfied:

1. The Minister or a person authorized in writing by the Minister is satisfied that no tax is payable, that all tax has been paid or that security for the payment of the tax has been furnished to the Minister or to the land registrar in a form and of a kind that is acceptable to the Minister.

2. The Minister or authorized person has indicated over his or her signature on the instrument that the tax has been paid or that no tax is payable.

3.  Section 2.1 of the Act, as enacted by the Statutes of Ontario, 1996, chapter 18, section 8 and amended by 1997, chapter 10, section 10, is repealed.

4.  Section 2.2 of the Act, as enacted by the Statutes of Ontario, 1996, chapter 29, section 18, is amended by striking out "is liable for the payment of the tax required to be paid on registration of the conveyance under section 2 or 2.1" and substituting "is liable for the tax payable under subsection 2 (1)".

5.  (1)  Clause 3 (5) (a) of the Act, as amended by the Statutes of Ontario, 1996, chapter 18, section 9, is repealed and the following substituted:

(a) an instrument evidencing the disposition of the beneficial interest in land is tendered for registration within 30 days after the date of the disposition and the tax payable under subsection 2 (1) on the registration of the instrument has been paid; or

(2)  Clause 3 (5) (a.1) of the Act, as enacted by the Statutes of Ontario, 1996, chapter 18, section 9, is repealed.

(3)  Subsection 3 (6) of the Act, as re-enacted by the Statutes of Ontario, 1996, chapter 18, section 9, is amended by striking out the portion before clause (a) and substituting the following:

Tax paid once only

(6)  If a person who has paid the tax under this section tenders for registration an instrument evidencing the disposition, no tax is payable under subsection 2 (1) if the Minister is satisfied that the instrument,

. . . . .

(4)  Subsection 3 (8) of the Act, as re-enacted by the Statutes of Ontario, 1996, chapter 18, section 9, is repealed and the following substituted:

Registration of instrument without payment of tax, etc.

(8)  Where an instrument has been verified under subsection (7), it may be registered without the payment of tax under subsection 2 (1) and without the production of the statement or affidavit required by section 5.

(5)  The French version of clause 3 (9) (b) of the Act is amended by striking out "sûreté en garantie" and substituting "garantie".

(6)  The French version of subsection 3 (11) of the Act, as amended by the Statutes of Ontario, 1996, chapter 18, section 9, is amended by striking out "sûreté" in the portion before clause (a) and substituting "garantie".

(7)  Clause 3 (11) (b) of the Act, as re-enacted by the Statutes of Ontario, 1996, chapter 18, section 9, is amended by striking out "section 2 or 2.1" and substituting "subsection 2 (1)".

6.  Section 4 of the Act, as amended by the Statutes of Ontario, 1994, chapter 18, section 4, is repealed.

7.  (1)  Subsection 5 (1) of the Act, as amended by the Statutes of Ontario, 1997, chapter 10, section 12 and 1997, chapter 19, section 12, is repealed and the following substituted:

Information and returns

Statement or affidavit re conveyance

(1)  The following information respecting a conveyance shall be provided to the Minister in the form and manner required by subsection (1.1) or (1.2):

1. The true value of the consideration for the conveyance.

2. The true amount in cash and the value of any property or security included in the value of the consideration.

3. The amount or value of any lien or encumbrance subject to which the conveyance is made.

4. Where the value of the conveyance exceeds $400,000, whether the land being conveyed contains at least one and not more than two single family residences.

5. Such other information as may be required by the Minister for the purposes of administering or enforcing this or any other Act.

Same, statement

(1.1)  If the conveyance is tendered for registration as an electronic document, the information shall be provided as a statement in the form and manner approved by the Minister and the statement shall be included as part of the electronic document.

Same, affidavit

(1.2)  If the conveyance is tendered for registration otherwise than as an electronic document, the information shall be provided as an affidavit in the form approved by the Minister and the affidavit shall be filed with the land registrar and attached by the land registrar to the conveyance to which it relates.

(2)  Subsection 5 (2) of the Act, as amended by the Statutes of Ontario, 1999, chapter 6, section 32, is amended by striking out the portion before clause (a) and substituting the following:

Maker of statement or affidavit

(2)  The statement or affidavit required by this section shall be made by,

. . . . .

(3)  Subsection 5 (2.1) of the Act, as enacted by the Statutes of Ontario, 1996, chapter 29, section 20, is amended by striking out the portion before clause (a) and substituting the following:

Same

(2.1)  Despite subsection (2), upon application to the Minister by a transferor named in a conveyance, the Minister or a person authorized by the Minister may consent to the transferor making the statement or affidavit required by this section and the transferor may do so if,

. . . . .

(4)  Clause 5 (2.1) (c) of the Act, as enacted by the Statutes of Ontario, 1996, chapter 29, section 20, is amended by adding at the end "or statement".

(5)  Subsections 5 (3) and (4) of the Act are repealed and the following substituted:

Contents

(3)  The statement or affidavit shall state that the person making it has personal knowledge of the facts stated in it and shall state, where applicable, the capacity in which the person is making the statement or affidavit and the name of any transferee on whose behalf the person is making the statement or affidavit.

Referral to Minister

(4)  If the land registrar is not satisfied that the statement or affidavit sets out the true value of the consideration for the conveyance, he or she may refuse to register the conveyance until the Minister has signified over his or her signature that the Minister is satisfied that the value of the consideration stated in the statement or affidavit is the true value of the consideration.

(6)  Subsection 5 (5) of the Act, as re-enacted by the Statutes of Ontario, 1996, chapter 29, section 20, is amended by striking out the portion before clause (a) and substituting the following:

Exceptions

(5)  Despite subsection (1), the information listed in paragraphs 1 to 4 of subsection (1) is not required for a conveyance tendered for registration as an electronic document and an affidavit is not required for a conveyance tendered for registration otherwise than as an electronic document,

. . . . .

(7)  Subsection 5 (5.1) of the Act, as enacted by the Statutes of Ontario, 1996, chapter 29, section 20, is repealed.

(8)  Section 5 of the Act, as amended by the Statutes of Ontario, 1994, chapter 18, section 4, 1996, chapter 18, section 10, 1996, chapter 29, section 20, 1997, chapter 10, section 12, 1997, chapter 19, section 12 and 1999, chapter 6, section 32, is amended by adding the following subsection:

Exception, certain leases

(6)  The information listed in paragraphs 1 to 4 of subsection (1) is not required for a conveyance if no tax is payable by reason of subsection 1 (6).

(9)  Subsection 5 (10) of the Act, as re-enacted by the Statutes of Ontario, 1994, chapter 18, section 4, is repealed.

(10)  Subsection 5 (11) of the Act, as re-enacted by the Statutes of Ontario, 1994, chapter 18, section 4 and amended by 1997, chapter 10, section 12, is repealed.

(11)  Subsection 5 (11.1) of the Act, as enacted by the Statutes of Ontario, 1996, chapter 18, section 10, is repealed.

(12)  Subsection 5 (13) of the Act, as amended by the Statutes of Ontario, 1994, chapter 18, section 4 and 1997, chapter 10, section 12, is repealed.

8.  The Act is amended by adding the following sections:

Designated collectors

5.1  (1)  The Minister may, in writing, designate one or more persons to collect the tax payable under this Act with respect to conveyances tendered for registration as electronic documents, and may attach such conditions and restrictions to a designation as the Minister considers appropriate.

Status

(2)  Every designated collector is an agent of the Minister for the purposes of collecting and remitting the tax imposed by this Act with respect to conveyances tendered for registration as electronic documents.

Security

(3)  The Minister shall demand security in a form acceptable to the Minister from every designated collector in an amount not less than the equivalent of an average of one month's tax collectable by the designated collector calculated for the 12-month period immediately preceding the date of the Minister's demand or $1 million, whichever is greater.

Same

(4)  Upon receiving the Minister's demand for security under subsection (3), the designated collector shall forthwith furnish the security.

Same

(5)  The Minister may, at any time, increase or decrease the amount of security furnished or to be furnished under subsection (4).

Tax held in trust

(6)  All amounts collected or collectable as or on account of tax under this Act by a designated collector,

(a) shall be deemed, despite any security interest in the amount so collected or collectable, to be held in trust for Her Majesty in right of Ontario;

(b) shall be held separate and apart from the designated collector's property and from property held by any secured creditor that but for the security interest would be the designated collector's property; and

(c) shall be remitted by the designated collector to the Minister in the manner and at the times provided under this Act.

Exception

(7)  Subsection (6) does not apply in proceedings to which the Bankruptcy and Insolvency Act (Canada) or the Companies' Creditors Arrangement Act (Canada) applies.

Minister's certificate

(8)  Every person who, as assignee, liquidator, administrator, receiver, receiver-manager, secured or unsecured creditor or agent of the creditor, trustee or other like person, other than a trustee appointed under the Bankruptcy and Insolvency Act (Canada), takes control or possession of any property of a designated collector shall, before distributing the property or proceeds from the realization of the property under that person's control, obtain from the Minister a certificate that the amount deemed by subsection (6) to be held in trust, including any interest and penalties payable by the designated collector, has been paid or that security acceptable to the Minister has been given.

No distribution without Minister's certificate

(9)  Any person described in subsection (8) who distributes any property described in that subsection or the proceeds of the realization of that property without having obtained the certificate required by that subsection is personally liable to Her Majesty in right of Ontario for an amount equal to the amount deemed by subsection (6) to be held in trust, including any interest and penalties payable by the designated collector.

Notice to be given

(10)  A person described in subsection (8) shall give written notice to the Minister of his or her assumption of possession or control of the property within seven days after assuming possession or control.

Minister to advise of indebtedness

(11)  As soon as practicable after receiving a notice under subsection (10), the Minister shall advise the person described in subsection (8) of the amount deemed by subsection (6) to be held in trust, including any interest and penalties.

Agreements

(12)  For the purposes of ensuring and facilitating the collection of tax under this Act, the Minister may enter into such arrangements and agreements with a designated collector as the Minister considers appropriate.

Definitions

(13)  In this section,

"secured creditor" means a person who has a security interest in the property of another person or who acts for or on behalf of that person with respect to the security interest, and includes a trustee appointed under a trust deed relating to a security interest, a receiver or receiver-manager appointed by a secured creditor or by a court on the application of a secured creditor and any other person performing a similar function; ("créancier garanti")

"security interest" means any interest in property that secures payment or performance of an obligation, and includes an interest created by or arising out of a debenture, mortgage, lien, pledge, charge, deemed or actual trust, assignment or encumbrance of any kind whatsoever or whenever arising, created or deemed to arise or otherwise provided for, but does not include a security interest prescribed by the Minister as one to which subsections (6) to (10) do not apply. ("sûreté")

Duty to collect tax

5.2  (1)  Every designated collector and land registrar shall collect the tax payable under this Act with respect to conveyances tendered for registration.

Duty to remit tax

(2)  Every designated collector and land registrar shall remit to the Minister, at the times and in the manner required by the Minister, the tax collectable by the designated collector or land registrar.

Duty to provide information

(3)  Every designated collector and land registrar shall give to the Minister and to such other persons as the Minister may specify any information obtained in the course of performing duties under this Act and such other information as the Minister considers necessary for the proper administration and enforcement of this or any other Act, and shall give the information to the Minister and other persons without charge and in the form and manner and at the times required by the Minister.

Duty to comply with guidelines

(4)  Every designated collector and land registrar shall comply with such guidelines established by the Minister as the Minister may require respecting the form and manner in which information is to be obtained by designated collectors or land registrars in the course of performing duties under this Act and respecting the collection and remittance of tax under this Act.

Duty to file returns

5.3  (1)  Every land registrar shall file with the Minister such returns as the Minister may require with respect to the amount of tax collected by the land registrar.

Same, designated collectors

(2)  Every designated collector shall file with the Minister at such times and in such manner as the Minister may require such returns containing such information as the Minister may require.

9.  Section 6 of the Act, as amended by the Statutes of Ontario, 1997, chapter 10, section 13, is repealed and the following substituted:

Offence, false statements

6.  (1)  Every person is guilty of an offence who,

(a) makes, participates in, assents to or acquiesces in the making of false or deceptive statements in a statement, affidavit, return or other document prepared, submitted or filed under this Act;

(b) destroys, alters, mutilates, hides or otherwise disposes of any records or books of account, in order to evade payment of tax under this Act;

(c) makes, assents to or acquiesces in the making of false or deceptive entries, or assents to or acquiesces in the omission to enter a material particular, in any records or books of account;

(d) wilfully, in any manner, evades or attempts to evade,

(i) paying tax under this Act, or

(ii) complying with this Act; or

(e) conspires with any person to commit an offence described in clauses (a) to (d).

Same

(2)  A person convicted of an offence under subsection (1) is liable to one or both of the following penalties, in addition to any other penalty provided by this Act:

1. A fine that is,

i. a minimum of $1,000 or 50 per cent of the amount of tax that should have been remitted as collected or payable or that was sought to be evaded, whichever is greater, and

ii. a maximum of twice the amount of tax that should have been remitted as collected or payable or that was sought to be evaded, if the maximum so calculated is greater than $1,000.

2. Imprisonment for a term of not more than two years.

Offence, failure to deliver return, pay tax

6.1  In addition to any penalty otherwise payable under this Act, every person who fails to deliver a return as required by subsection 5 (7) or (8) or who fails to remit the tax payable is guilty of an offence and on conviction is liable to a fine of not less than 25 per cent of the tax payable and not more than twice the amount of the tax payable.

10.  (1)  Subsection 7 (1) of the Act, as amended by the Statutes of Ontario, 1997, chapter 10, section 14, is repealed and the following substituted:

Offence, general

(1)  Subject to sections 6 and 6.1, every person who knowingly contravenes any provision of this Act is guilty of an offence and on conviction is liable to a fine of not more than $10,000 if no other penalty is provided for the offence.

(2)  Subsection 7 (2) of the Act is amended by striking out "the Ministry of Revenue" and substituting "the Ministry of Finance".

11.  Section 7.1 of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 133, is amended by adding the following subsections:

Same, tax under s. 2 (1)

(2)  Every person who tenders for registration a conveyance described in subsection 2 (1) and who pays, at that time, an amount that is less than the amount of tax payable by that person under subsection 2 (1) shall pay a penalty, when the Minister assesses it, in an amount equal to 5 per cent of the difference between the tax payable and the amount actually paid.

Same, returns under s. 5

(3)  Every person who fails to deliver a return as required by subsection 5 (7) or (8) shall pay a penalty, when the Minister assesses it, in an amount equal to 5 per cent of the tax payable.

Same, taxes under s. 5

(4)  Every person who fails to remit with a return required by subsection 5 (7) or (8) the amount of tax payable shall pay, when the Minister so assesses, a penalty of an amount equal to 5 per cent of the difference between the tax payable and the amount actually paid.

12.  The Act is amended by adding the following section:

Penalties, designated collectors

Failure to comply with conditions of designation

7.2  (1)  The Minister may assess a penalty against a designated collector who fails to comply with any condition or restriction attached to the designated collector's designation under subsection 5.1 (1) and the amount of the penalty is not more than $5,000 for each day the failure continues.

Failure to provide security

(2)  The Minister may assess a penalty against a designated collector who fails to provide security as required under subsection 5.1 (3) and the amount of the penalty is not more than $5,000 for each day the failure continues.

Failure to collect tax

(3)  The Minister may assess a penalty against a designated collector who fails to collect tax as required by subsection 5.2 (1), and the amount of the penalty is 110 per cent of the amount that the designated collector failed to collect.

Right to sue

(4)  If a designated collector pays a penalty under subsection (3) in respect of tax that the designated collector failed to collect from a person who was liable to pay the tax, the designated collector may sue the person in order to recover the amount of the tax.

Failure to remit tax

(5)  The Minister may assess a penalty against a designated collector who fails to remit tax as required by subsection 5.2 (2), and the amount of the penalty is 10 per cent of the amount that the designated collector failed to remit.

Failure to provide information

(6)  The Minister may assess a penalty against a designated collector who, in the Minister's opinion, fails to provide the information required by subsection 5.2 (3) in accordance with the requirements imposed under that subsection and the amount of the penalty is $10,000 for each day that the failure continues.

Failure to comply with guidelines

(7)  The Minister may assess a penalty against a designated collector who, in the Minister's opinion, fails to comply with the guidelines under subsection 5.2 (4) and the amount of the penalty is not more than $5,000 for each day the failure continues.

Failure to file a return

(8)  The Minister may assess a penalty against a designated collector who fails to file a return under subsection 5.3 (2) at the time or in the manner required by the Minister or fails to include in a return filed under that subsection any information required by the Minister and the amount of the penalty is $10,000 for each day that the failure continues.

13.  (1)  Subsection 8 (1) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 43, Schedule F, section 6, is repealed and the following substituted:

Refund

(1)  Where a person has paid an amount under this Act that is not payable under this Act, the Minister may, upon receipt of satisfactory evidence that the amount was wrongly paid, refund all or part of the amount, but no refund shall be made unless an application for it is made within four years after the date of the payment.

(2)  Subsection 8 (6) of the Act, as amended by the Statutes of Ontario, 1996, chapter 18, section 11 and 1997, chapter 43, Schedule F, section 6, is amended by striking out "section 2 or 2.1" and substituting "subsection 2 (1)".

14.  Section 9.1 of the Act, as enacted by the Statutes of Ontario, 1994, chapter 18, section 4, is repealed.

15.  Section 9.2 of the Act, as enacted by the Statutes of Ontario, 1996, chapter 18, section 13 and amended by 1999, chapter 6, section 32, 1999, chapter 9, section 134, 2000, chapter 10, section 19 and 2001, chapter 23, section 143, is amended by adding the following subsection:

Information in application

(6)  All information in an application for a refund under this section shall be available to the public.

16.  The Act is amended by adding the following section:

Records to be kept

9.3  (1)  Every person required by section 5 to make a statement or affidavit or to deliver a return shall keep at their place of residence in Ontario or at their principal place of business in Ontario such documents, records and accounts in such form and containing such information as will enable an accurate determination of the taxes payable under this Act.

Same, designated collectors

(2)  Every designated collector shall keep at the designated collector's principal place of business in Ontario documents, records and accounts in such form and containing such information as will enable an accurate determination of the taxes collectable, collected and remitted under this Act.

Same

(3)  Every designated collector shall keep at the designated collector's principal place of business in Ontario documents, records and accounts in such form and containing such information as will enable the verification of information that the designated collector is required under subsection 5.2 (3) to give to the Minister.

Duration

(4)  A person required to keep documents, records and accounts shall do so for a period of seven years after the date on which the conveyance to which they relate is registered or the information to which they relate is given to the Minister, as the case may be, unless written permission for earlier disposal is received from the Minister.

17.  (1)  Clause 10 (1) (a) of the Act is amended by striking out "the amount of tax payable under this Act" at the end and substituting "an amount payable under this Act".

(2)  Clauses 10 (1) (b), (c) and (d) of the Act are repealed and the following substituted:

(b) examine property described in any conveyance or any property, process or matter an examination of which may, in his or her opinion, assist him or her in determining the accuracy of any statement, affidavit or return required by this Act or in ascertaining the information that is or should be in the books or records or in a statement, affidavit or return, or in ascertaining any amount payable under this Act; and

(c) require a designated collector, an officer, director, agent or representative of a designated collector, a transferee who is liable or possibly liable to pay tax under this Act, an officer, director, agent or representative of that transferee or any person on the premises,

(i) to give him or her all reasonable assistance with his or her audit or examination,

(ii) to answer all questions relating to the audit or examination either orally or, if he or she so requires, in writing, on oath or by statutory declaration, and

(iii) to attend at the premises or place with him or her for the purposes of giving reasonable assistance and answering questions relating to the audit or examination.

(3)  Subsection 10 (2) of the Act is repealed and the following substituted:

Demand for information

(2)  The Minister may, for any purpose relating to the administration or enforcement of this Act, serve on any person personally, by registered mail or by a courier service a written demand for information or for the production on oath or otherwise of books, letters, accounts, invoices, financial statements or such other documents as the Minister or the person authorized by the Minister to make the demand considers necessary to determine compliance with this Act.

Same

(2.1)  A person in receipt of a demand under subsection (2) shall comply with the demand within the time specified in the demand.

(4)  Subsection 10 (3) of the Act, as amended by the Statutes of Ontario, 1994, chapter 18, section 4, is repealed and the following substituted:

Copies as evidence

(3)  Where a book, record or other document has been examined or produced under this section, the person by whom it is examined or to whom it is produced, or any officer of the Ministry of Finance, may make or cause to be made one or more copies thereof, and a document purporting to be certified by the Minister or a person authorized by the Minister to be a copy made pursuant to this section is admissible in evidence and has the same probative force as the original document would have had if it had been proven in the ordinary way.

18.  (1)  Subsection 12 (1) of the Act, as re-enacted by the Statutes of Ontario, 1996, chapter 29, section 21, is repealed and the following substituted:

Assessment

(1)  The Minister may make an assessment of an amount of tax or penalty required under this Act, together with any interest imposed thereon under this Act,

(a) if a person responsible for the payment of tax fails to pay it as required under this Act;

(b) if a person required by section 5.1 to collect and remit tax to the Minister fails to remit the tax as required under this Act or if the amount remitted is not, in the opinion of the Minister, substantiated by the person's records; or

(c) if a person is liable to pay tax or a penalty imposed under this Act.

(2)  Section 12 of the Act, as amended by the Statutes of Ontario, 1994, chapter 18, section 4 and 1996, chapter 29, section 21, is amended by adding the following subsections:

Exception, waiver of limitation

(4.1)  Despite subsection (4), the Minister may assess or reassess a person at any time if the person has filed with the Minister a waiver in a form approved by the Minister before the expiry of the time provided in subsection (4).

Revocation of waiver

(4.2)  If a person files a waiver under subsection (4.1), the person may file a notice of revocation of the waiver in a form approved by the Minister.

Effect of revocation

(4.3)  If a person files a notice of revocation of the waiver under subsection (4.2), the Minister shall not issue an assessment or reassessment under subsection (1) in reliance on the waiver more than one year after the date on which the notice of revocation is filed.

(3)  Subsection 12 (5) of the Act is amended,

(a) by striking out "shall calculate the tax payable" and substituting "shall calculate the amount payable under this Act"; and

(b) by striking out "the Minister shall assess the amount of the tax" at the end and substituting "the Minister shall assess the amount payable under this Act".

(4)  Subsection 12 (7) of the Act is amended by striking out "Liability for tax" at the beginning and substituting "Liability to pay an amount under this Act".

(5)  Subsection 12 (8) of the Act is repealed and the following substituted:

Minister not bound by information

(8)  The Minister is not bound by any information delivered by or on behalf of a person responsible for the payment of an amount under this Act and may, despite any information that has been delivered or if no information has been delivered, assess the amount payable under this Act.

(6)  Section 12 of the Act, as amended by the Statutes of Ontario, 1994, chapter 18, section 4 and 1996, chapter 29, section 21, is amended by adding the following subsection:

Security given under s. 5.1 (3)

(11)  If the Minister assesses a person who has furnished security under subsection 5.1 (3), all or part of the security may be paid into the Consolidated Revenue Fund in satisfaction of all or part of the person's assessed liability.

19.  Subsection 14 (8) of the Act, as amended by the Statutes of Ontario, 1994, chapter 18, section 4, is amended by striking out "the court may order payment or refund of tax" and substituting "the court may order payment or refund of an amount".

20.  (1)  Clause 15 (1) (b) of the Act, as amended by the Statutes of Ontario, 2001, chapter 23, section 146, is amended by striking out "a warrant directed to the sheriff of the area in which any property of a person assessed for tax under this Act is located or situate for the amount of the tax owing by the person" and substituting "a warrant directed to the sheriff of the area in which any property of a person assessed under this Act is located or situate for the amount owing under this Act by the person".

(2)  The French version of subsection 15 (3) of the Act is amended by striking out "sûreté en garantie" and substituting "garantie".

(3)  Subsection 15 (6) of the Act is amended by striking out "the payment of any tax imposed by this Act" and substituting "the payment of any amount required under this Act".

21.  Subclause 17 (2) (a) (i) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 18, section 4, is repealed and the following substituted:

(i) all tax under this Act that is payable or collectable by the person before that date,

22.  The French version of subsection 18 (6) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 10, section 18, is repealed and the following substituted:

Remise de la garantie

(6)  Le ministre remet à la personne qui l'a fournie la garantie de l'acquittement des droits annulés en vertu du présent article qu'il détient. Il le fait le plus tôt possible après avoir reconnu l'annulation des droits.

23.  Section 21 of the Act, as amended by the Statutes of Ontario, 1997, chapter 10, section 20, is amended by striking out "subsections 5 (7), (8), (9), (11), (12) and (13)" in the portion before clause (a) and substituting "subsections 5 (7), (8), (9) and (12), section 6.1, subsections 7.1 (2)".

24.  The Act is amended by adding the following sections:

Use and disclosure of certain information

21.1  The Minister may enter into agreements to permit third parties to use information provided under subsection 5 (1) for such purposes and subject to such conditions and restrictions as the Minister considers appropriate.

No right to compensation

21.2  Nothing in this Act and no exercise of any power or performance of any duty under section 5.1, 5.2, 5.3 or 21.1 shall be deemed by any court or person to entitle any person to compensation from the Crown under any agreement that purports to provide for compensation, whether the agreement is made before or after section 5.1 comes into force.

25.  Clause 22 (2) (c) of the Act is repealed.

Commencement

26.  This Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

SCHEDULE 22
AMENDMENT TO THE LIMITATIONS ACT, 2002

1.  The Schedule to the Limitations Act, 2002, as amended by the Statutes of Ontario, 2002, chapter 24, Schedule B, section 50 and 2004, chapter 16, Schedule D, Table, is amended by striking out,

Securities Act

section 129.1, subsection 136 (5) and section 138

   

and substituting the following:

Securities Act

section 129.1, subsection 136 (5) and sections 138 and 138.14

Commencement

2.  This Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

SCHEDULE 23
AMENDMENT TO THE LOAN AND TRUST CORPORATIONS ACT

1.  The definition of "loan corporation" in section 1 of the Loan and Trust Corporations Act, as amended by the Statutes of Ontario, 2001, chapter 8, section 52, is amended by striking out "a credit union or caisse populaire incorporated or registered under the Credit Unions and Caisses Populaires Act or an issuer registered under the Investment Contracts Act" at the end and substituting "a credit union, caisse populaire or league under the Credit Unions and Caisses Populaires Act, 1994 or a retail association under the Cooperative Credit Associations Act (Canada)".

Commencement

2.  This Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

SCHEDULE 24
AMENDMENT TO THE MINISTRY OF REVENUE ACT

1.  The Ministry of Revenue Act is amended by adding the following section:

Minister may withhold tax refunds

15.  Despite the provisions of any other Act, if a person who is entitled to a refund on account of tax, interest or penalties under any Act administered by the Minister has failed to deliver one or more returns under any Act or Acts administered by the Minister, the Minister may withhold payment of the refund until such time as the Minister is satisfied that the person has delivered the return or returns.

Commencement

2.  This Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

SCHEDULE 25
AMENDMENTS TO THE MOTOR VEHICLE ACCIDENT CLAIMS ACT

1.  (1)  Subsection 5 (1) of the Motor Vehicle Accident Claims Act is amended by striking out "in a form prescribed by the Minister" and substituting "in a form approved by the Director".

(2)  Clause 5 (3) (b) of the Act is amended by striking out "in a form prescribed by the Minister" and substituting "in a form approved by the Director".

2.  Subsection 7 (1) of the Act, as amended by the Statutes of Ontario, 1993, chapter 27, Schedule, is amended by striking out "in the form prescribed by the Lieutenant Governor in Council" and substituting "in the form approved by the Director".

Commencement

3.  This Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

SCHEDULE 26
AMENDMENTS TO THE MUNICIPAL ACT, 2001

1.  (1)  Clause 314 (1) (a) of the Municipal Act, 2001 is repealed and the following substituted:

(a) establish two or three bands of assessment of property for the purposes of facilitating graduated tax rates for any one or more of the property classes included in the commercial classes or the industrial classes; and

(2)  Subsection 314 (2) of the Act is repealed.

(3)  Section 314 of the Act is amended by adding the following subsection:

Definitions

(8)  In this section,

"commercial classes" has the meaning given to that expression by subsection 308 (1); ("catégories commerciales")

"industrial classes" has the meaning given to that expression by subsection 308 (1). ("catégories industrielles")

2.  (1)  The definition of "Upper-tier commercial tax" in subsection 315 (3) of the Act is repealed and the following substituted:

"Upper-tier commercial tax" means that portion of the total commercial tax levied in the local municipality for upper-tier purposes.

(2)  Subsection 315 (4) of the Act is amended by adding the following clause:

(a.1) prescribing the rate of tax to be imposed for 2005 or a subsequent year by a local municipality on certain land described in subsection (1) instead of the rate of tax prescribed under clause (a) for that year for the geographic area in which the land is located;

3.  Subsection 329 (4) of the Act is repealed and the following substituted:

Adjustment

(4)  If the taxes for municipal and school purposes for a property for the previous year are recalculated as a result of one of the following, the amount under paragraph 1 of subsection (2) shall be adjusted accordingly:

1. A request under section 39.1 of the Assessment Act.

2. A complaint under section 40 of the Assessment Act.

3. An application under section 46 of the Assessment Act.

4. An application under section 334 of this Act or 447.26 of the old Act.

5. A determination under section 447.26.1 of the old Act.

4.  Paragraph 4 of subsection 330 (4) of the Act is repealed and the following substituted:

4. The percentage established under the by-law shall not exceed the percentage determined under paragraph 3 or 100 per cent, whichever is the lesser percentage, unless otherwise prescribed by the Minister of Finance.

5.  Clause (a) of the definition of "eligible property" in subsection 331 (20) of the Act is amended by striking out "subsection 329 (8)" and substituting "subsection 329 (7)".

6.  Clause 357 (1) (e) of the Act is amended by striking out "from the local municipality".

7.  The Act is amended by adding the following section:

Error in calculating taxes

359.1  (1)  Despite paragraph 1 of subsection 329 (2), upon application made by the treasurer of a local municipality, the local municipality may, if it is satisfied that there was an error in the calculation of taxes on land under Part IX or under Part XXII.1, XXII.2 or XXII.3 of the old Act, authorize the use of an amount of taxes referred to in paragraph 1 of subsection 329 (2) for the year in which the application is made which reflects what the taxes would have been on the land for the previous year if the error had not been made.

Meeting

(2)  Before making a decision under subsection (1), council shall,

(a) hold a meeting at which the treasurer and the person in respect of whom the application is made may make representations to council; and

(b) notify the treasurer and the person in respect of whom the application is made of the meeting by mail sent at least 14 days before the meeting.

Notice

(3)  Within 14 days after making its decision, the council shall notify the treasurer and the person in respect of whom the application is made of the decision.

Appeal

(4)  The provisions of subsections 359 (5), (6) and (7) apply to a decision of a council under this section, with necessary modifications.

No authority to change previous year's taxes

(5)  Nothing in this section authorizes a municipality to change the taxes levied on land for a previous year.

8.  (1)  Section 365.1 of the Act, as enacted by the Statutes of Ontario, 2002, chapter 17, Schedule A, section 68, is amended by adding the following subsections:

Payment of tax if conditions not met

(3.1)  If a municipality passes a by-law under subsection (2) or (3) and the by-law contains conditions which must be met before tax assistance is provided, the by-law may also provide,

(a) that all or some of the taxes that are the subject of the tax assistance may be levied but not collected during the period before the municipality determines whether the conditions have been met; and

(b) that the taxes shall become payable only upon notice in writing by the municipality to the owner of the property that the conditions have not been met as required under the by-law.

Same

(3.2)  A by-law providing that taxes become payable in the circumstances described in subsection (3.1) may also provide that the interest provisions of a by-law passed under section 345 apply, if the taxes become payable, as if the payment of the taxes had not been deferred.

(2)  Subsection 365.1 (21) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 17, Schedule A, section 68, is repealed and the following substituted:

Refund or credit

(21)  If an application made under subsection (8) is approved with respect to a property, the local municipality may,

(a) refund the taxes to the extent required to provide the tax assistance, if the taxes have been paid; or

(b) credit the amount to be refunded to an outstanding tax liability of the owner of the eligible property with respect to the property, if the taxes have not been paid.

9.  Section 474 of the Act is repealed and the following substituted:

Taxes imposed under certain Parts of old Act

474.  Despite the repeal of the old Act, Parts XXII.1, XXII.2 and XXII.3 of that Act continue to apply with respect to taxes imposed in accordance with those Parts, including any power under those Parts to make regulations relating to taxes payable under the old Act for any year ending before January 1, 2003.

Commencement

10.  (1)  Subject to subsections (2) and (3), this Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

Same

(2)  Section 8 shall be deemed to have come into force on October 1, 2004.

Same

(3)  Section 9 shall be deemed to have come into force on January 1, 2003.

SCHEDULE 27
AMENDMENT TO THE NORTHERN ONTARIO HERITAGE FUND ACT

1.  Subsection 3 (4) of the Northern Ontario Heritage Fund Act, as amended by the Statutes of Ontario, 2000, chapter 42, section 77, is amended by striking out "or in The District Municipality of Muskoka".

Commencement

2.  This Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

SCHEDULE 28
AMENDMENT TO THE NORTHERN SERVICES BOARDS ACT

1.  Section 35 of the Northern Services Boards Act, as enacted by the Statutes of Ontario, 1998, chapter 16, section 10 and amended by 2000, chapter 42, section 79, is amended by striking out "and The District Municipality of Muskoka".

Commencement

2.  This Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

SCHEDULE 29
AMENDMENTS TO THE ONTARIO HOME OWNERSHIP SAVINGS PLAN ACT

1.  Section 2 of the Ontario Home Ownership Savings Plan Act, as amended by the Statutes of Ontario, 1994, chapter 17, section 124 and 2000, chapter 42, section 87, is amended by striking out "after the 31st day of August, 1988" in the portion before paragraph 1 and substituting "after August 31, 1988 and before May 19, 2004".

2.  Subsection 3 (3) of the Act, as amended by the Statutes of Ontario, 2000, chapter 42, section 88, is amended by striking out the portion before clause (a) and substituting the following:

Not a qualifying contribution

(3)  No contribution to an Ontario home ownership savings plan is a qualifying contribution for the purposes of this Act and the Income Tax Act if it is made after May 18, 2004 or if,

. . . . .

3.  (1)  Section 9 of the Act, as amended by the Statutes of Ontario, 1994, chapter 17, section 123, 1997, chapter 19, section 18 and 2000, chapter 42, section 91, is amended by adding the following subsection:

Exception, 2006 and subsequent years

(2.1)  If, after December 31, 2005, the planholder of an Ontario home ownership savings plan receives assets of the plan or the use or benefit of assets of the plan either directly or indirectly, or is deemed by this Act to have received any assets of the plan, no amount is payable under subsection (1) with respect to tax credits allowed under the Income Tax Act relating to the plan if the planholder has otherwise complied with this Act and the regulations.

(2)  Subsection 9 (3) of the Act, as amended by the Statutes of Ontario, 1994, chapter 17, section 123 and 1997, chapter 19, section 18, is amended by striking out "Except in the circumstances described in section 5" at the beginning and substituting "Except in the circumstances described in subsection (2.1) or section 5".

4.  Section 11 of the Act, as re-enacted by the Statutes of Ontario, 1994, chapter 17, section 126, is amended by adding the following subsection:

Deemed receipt of assets of the plan

(3)  A planholder who entered into an Ontario home ownership savings plan after December 31, 1998 and has otherwise complied with this Act and the regulations shall be deemed to have received all of the assets of the plan on January 1, 2006 if the planholder has not, on or before December 31, 2005,

(a) obtained a release of the assets of the plan under section 5; and

(b) completed the purchase of property that will be a qualifying eligible home.

Commencement

5.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

Same

(2)  Sections 1 to 4 shall be deemed to have come into force on May 18, 2004.

SCHEDULE 30
AMENDMENTS TO THE ONTARIO MUNICIPAL ECONOMIC INFRASTRUCTURE FINANCING AUTHORITY ACT, 2002

1.  The short title of the Ontario Municipal Economic Infrastructure Financing Authority Act, 2002 is repealed and the following substituted:

Ontario Strategic Infrastructure Financing Authority Act, 2002

2.  Section 1 of the Act is amended by adding the following subsection:

Reference to Ontario Municipal Economic Infrastructure Financing Authority

(2)  A reference in a regulation made under this or any other Act to the Ontario Municipal Economic Infrastructure Financing Authority shall be deemed to be a reference to the Ontario Strategic Infrastructure Financing Authority.

3.  Subsection 2 (1) of the Act is amended,

(a) by striking out "Ontario Municipal Economic Infrastructure Financing Authority" wherever it appears and substituting in each case "Ontario Strategic Infrastructure Financing Authority"; and

(b) by striking out "Office ontarien de financement de l'infrastructure économique des municipalités" and substituting "Office ontarien de financement de l'infrastructure stratégique".

Commencement

4.  This Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

SCHEDULE 31
AMENDMENTS TO THE PENSION BENEFITS ACT

1.  (1)  The definition of "collective agreement" in section 1 of the Pension Benefits Act is amended by striking out "Labour Relations Act" and substituting "Labour Relations Act, 1995".

(2)  The definition of "trade union" in section 1 of the Act is amended by striking out " Labour Relations Act " and substituting " Labour Relations Act, 1995 ".

2.  Subsection 38 (5) of the Act is amended by striking out "section 57 of the Labour Relations Act" and substituting "section 62 of the Labour Relations Act, 1995".

3.  Subsection 74 (5) of the Act is amended by striking out "Part XIV of the Employment Standards Act" and substituting "Part XV of the Employment Standards Act, 2000".

4.  Subsections 80 (8) and (9) of the Act are amended by striking out "section 57 of the Labour Relations Act" wherever it appears and substituting in each case "section 62 of the Labour Relations Act, 1995".

5.  Subsection 82 (4) of the Act is amended by striking out "Treasurer of Ontario" and substituting "Minister of Finance".

6.  Subsections 112 (1) and (2) of the Act are amended by striking out "first class mail" wherever it appears and substituting in each case "regular mail".

Commencement

7.  This Schedule comes into force the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

SCHEDULE 32
AMENDMENT TO THE PROVINCE OF ONTARIO SAVINGS OFFICE PRIVATIZATION ACT, 2002

1.  Subsection 9 (5) of the Province of Ontario Savings Office Privatization Act, 2002 is repealed and the following substituted:

Crown not liable

(5)  Upon a transfer and assignment referred to in subsection (1) or a disposition of the contents of a safety deposit box under subsection (4), the Crown shall cease to be liable to any person in respect of the safety deposit box, its contents and the proceeds of disposition, if any.

No action against the Crown, etc.

(6)  No action or proceedings for damages or otherwise shall be commenced against the Crown, the Minister of Finance, the Ontario Financing Authority or any director, officer, employee or agent of the Crown or the Ontario Financing Authority in respect of,

(a) a transfer or assignment referred to in subsection (1); or

(b) a disposition of the contents of a safety deposit box under subsection (4) or the remittance of any contents, or the proceeds of disposition of any contents, of a safety deposit box to the Consolidated Revenue Fund.

Commencement

2.  This Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

SCHEDULE 33
AMENDMENTS TO THE RETAIL SALES TAX ACT

1.  Section 1 of the Retail Sales Tax Act, as amended by the Statutes of Ontario, 1993, chapter 12, section 1, 1994, chapter 13, section 1, 1994, chapter 17, section 135, 1996, chapter 29, section 23, 1997, chapter 10, section 30, 1997, chapter 43, Schedule D, section 1, 2000, chapter 10, section 23, 2001, chapter 8, section 227, 2001, chapter 23, section 188, 2002, chapter 8, Schedule J, section 1, 2002, chapter 17, Schedule F, Table and 2002, chapter 22, section 170, is amended by adding the following subsection:

Fair value of transient accommodation

(1.1)  Despite the definition of "fair value" in subsection (1), the fair value of transient accommodation sold to a purchaser on or after May 19, 2004 and before May 19, 2005 does not include a fee imposed by the vendor if the following conditions are satisfied:

1. The vendor forwards the fee to a non-profit agency to be used for the exclusive purpose of promoting tourism in Ontario or in the municipality in which the accommodation is located.

2. The fee does not exceed 3 per cent of the amount that would be the fair value of the transient accommodation if no fee were imposed by the vendor.

3. The fee is shown as a separate item on the purchaser's invoice or receipt for the accommodation.

4. After December 31, 2004, the fee is labelled on the purchaser's invoice or receipt as "Destination Marketing Fee".

2.  (1)  Clause 2.1 (8) (d) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 13, section 3, is amended by striking out "marine insurance, as defined in section 1 of the Insurance Act" at the beginning and substituting "marine insurance, as defined under the Insurance Act".

(2)  Clause 2.1 (8) (l) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 13, section 3, is amended by striking out "property damage insurance, as defined in section 1 of the Insurance Act" at the beginning and substituting "property insurance, as defined under the Insurance Act".

3.  Subsection 18 (3) of the Act, as amended by the Statutes of Ontario, 1996, chapter 29, section 30 and 2001, chapter 23, section 194, is repealed and the following substituted:

Assessment, four-year limitation

(3)  The Minister may assess or reassess any tax payable under this Act by a purchaser, other than a manufacturing contractor, or by a registrant within four years from the day such tax became payable.

Same, manufacturing contractor

(3.0.1)  The Minister may assess or reassess any tax payable by a manufacturing contractor under this Act within four years from the end of the manufacturing contractor's fiscal year during which the tax became payable.

Exception, misrepresentation or fraud

(3.0.2)  Despite subsections (3) and (3.0.1), the Minister may assess or reassess a purchaser or registrant at any time if the purchaser or registrant has made any misrepresentation that is attributable to neglect, carelessness or wilful default, or has committed any fraud in making a return or in supplying any information under this Act or in omitting to disclose any information.

Exception, waiver of limitation

(3.0.3)  Despite subsections (3) and (3.0.1), the Minister may assess or reassess a purchaser or registrant at any time if the purchaser or registrant has filed with the Minister a waiver in a form approved by the Minister before the expiry of the time provided in subsection (3) or (3.0.1), as the case may be.

Revocation of waiver

(3.0.4)  If a purchaser or registrant files a waiver under subsection (3.0.3), the purchaser or registrant may file a notice of revocation of the waiver in a form approved by the Minister.

Effect of revocation

(3.0.5)  If a purchaser or registrant files a notice of revocation of the waiver under subsection (3.0.4), the Minister shall not issue an assessment or reassessment under subsection (3) or (3.0.1), as the case may be, in reliance on the waiver more than one year after the date on which the notice of revocation is filed.

4.  Subsection 20 (5) of the Act is repealed and the following substituted:

Restriction, four-year limitation

(5)  No penalty imposed under subsection (3) shall be imposed with respect to tax that should have been collected more than four years immediately preceding the day of the assessment under subsection (3).

Exception, waiver of limitation

(5.1)  The restriction in subsection (5) does not apply if the vendor has filed with the Minister a waiver in a form approved by the Minister within four years from the date on which the tax should have been collected.

Revocation of waiver

(5.2)  If a vendor files a waiver under subsection (5.1), the vendor may file a notice of revocation of the waiver in a form approved by the Minister.

Effect of revocation

(5.3)  If a vendor files a notice of revocation of waiver under subsection (5.2), the Minister shall not assess a penalty under subsection (3) in reliance on the waiver more than one year after the date on which the notice of revocation is filed.

Exception, misrepresentation or fraud

(5.4)  The restriction in subsection (5) does not apply if the Minister establishes that the vendor has made any misrepresentation that is attributable to neglect, carelessness or wilful default, or has committed any fraud in making a return or in supplying any information under this Act or in omitting to disclose any information.

5.  Section 34 of the Act, as amended by the Statutes of Ontario, 1994, chapter 13, sections 8 and 20 and 2001, chapter 23, section 204, is amended by adding the following subsection:

Exception, tax payable under s. 3

(6)  Despite subsections (1) and (3), the interest payable under this section in respect of tax payable under section 3 shall be,

(a) charged at the rate prescribed by the regulations made under subsection 28.2 (5) of the Fuel Tax Act; and

(b) calculated in the manner prescribed by the regulations under subsection 28.2 (5) of the Fuel Tax Act.

6.  Section 35 of the Act, as re-enacted by the Statutes of Ontario, 1994, chapter 13, section 21, is amended by adding the following subsection:

Exception, overpayment of tax payable under s. 3

(4)  Despite subsections (1) and (2), interest paid or applied under this section in respect of an overpayment of tax payable under section 3 shall be,

(a) charged at the rate prescribed by the regulations made under subsection 28.2 (5) of the Fuel Tax Act; and

(b) calculated in the manner prescribed by the regulations under subsection 28.2 (5) of the Fuel Tax Act.

7.  (1)  Subsection 48 (3) of the Act, as amended by the Statutes of Ontario, 1993, chapter 12, section 14, 1994, chapter 13, section 25, 1996, chapter 18, section 18, 1997, chapter 10, section 34, 1997, chapter 19, section 22, 1997, chapter 43, Schedule D, section 14, 1998, chapter 5, section 47, 1999, chapter 9, section 189, 2000, chapter 42, section 95, 2001, chapter 8, section 232, 2001, chapter 23, section 207 and 2002, chapter 23, section 5, is amended by adding the following clause:

(c) providing for the use of purchase exemption certificates and other documents where purchasers or classes of purchasers are exempt from tax under this Act;

(2)  Clause 48 (3) (k) of the Act is repealed and the following substituted:

(k) providing for a rebate or a partial rebate of tax paid on motor vehicles that are purchased to transport physically disabled persons if the motor vehicles are ordered from a vendor or purchased on or before May 18, 2004 and delivered to the purchaser before August 1, 2004;

(3)  Subsection 48 (3) of the Act, as amended by the Statutes of Ontario, 1993, chapter 12, section 14, 1994, chapter 13, section 25, 1996, chapter 18, section 18, 1997, chapter 10, section 34, 1997, chapter 19, section 22, 1997, chapter 43, Schedule D, section 14, 1998, chapter 5, section 47, 1999, chapter 9, section 189, 2000, chapter 42, section 95, 2001, chapter 8, section 232, 2001, chapter 23, section 207 and 2002, chapter 23, section 5, is amended by adding the following clause:

(s) providing for a rebate of all or part of the tax paid in respect of a wind energy system, a micro hydro-electric energy system or a geothermal energy system, as those terms are defined by the Minister, that is purchased and incorporated into residential premises after March 27, 2003 and before November 26, 2007, and prescribing the terms and conditions under which the rebate may be made including,

(i) the person to whom the rebate is payable,

(ii) the manner of determining the amount of the rebate, and

(iii) the class or classes of residential premises that qualify for the purposes of the rebate.

Commencement

8.  (1)  Subject to subsections (2) and (3), this Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

Same

(2)  Section 1 and subsection 7 (2) shall be deemed to have come into force on May 19, 2004.

Same

(3)  Section 2 comes into force on the day subsection 4 (1) of Schedule H to the Government Efficiency Act, 2002 comes into force.

SCHEDULE 34
AMENDMENTS TO THE SECURITIES ACT

1.  (1)  Subsection 1 (1) of the Securities Act, as amended by the Statutes of Ontario, 1994, chapter 11, section 350, 1994, chapter 33, section 1, 1997, chapter 19, section 23, 1999, chapter 6, section 60, 1999, chapter 9, section 193, 2001, chapter 23, section 209 and 2002, chapter 22, section 177, is amended by adding the following definition:

"forward-looking information" means disclosure regarding possible events, conditions or results of operations that is based on assumptions about future economic conditions and courses of action and includes future oriented financial information with respect to prospective results of operations, financial position or cash flows that is presented either as a forecast or a projection; ("information prospective")

(2)  The definition of "mutual fund" in subsection 1 (1) of the Act, as re-enacted by the Statutes of Ontario, 2002, chapter 22, section 177, is repealed and the following substituted:

"mutual fund" means an issuer whose primary purpose is to invest money provided by its security holders and whose securities entitle the holder to receive on demand, or within a specified period after demand, an amount computed by reference to the value of a proportionate interest in the whole or in part of the net assets, including a separate fund or trust account, of the issuer; ("fonds mutuel")

(3)  Subsection 1 (1) of the Act, as amended by the Statutes of Ontario, 1994, chapter 11, section 350, 1994, chapter 33, section 1, 1997, chapter 19, section 23, 1999, chapter 6, section 60, 1999, chapter 9, section 193, 2001, chapter 23, section 209 and 2002, chapter 22, section 177, is amended by adding the following definition:

"non-redeemable investment fund" means an issuer,

(a) whose primary purpose is to invest money provided by its security holders,

(b) that does not invest,

(i) for the purpose of exercising or seeking to exercise control of an issuer, other than an issuer that is a mutual fund or a non-redeemable investment fund, or

(ii) for the purpose of being actively involved in the management of any issuer in which it invests, other than an issuer that is a mutual fund or a non-redeemable investment fund, and

(c) that is not a mutual fund; ("fonds d'investissement à capital fixe")

(4)  Subsection 1 (1.1) of the Act, as re-enacted by the Statutes of Ontario, 2002, chapter 22, section 177, is amended by striking out ""non-redeemable investment fund"".

2.  (1)  Clause 3.4 (2) (b) of the Act, as re-enacted by the Statutes of Ontario, 2002, chapter 22, section 178, is repealed and the following substituted:

(b) that is designated under the terms of the order or settlement for allocation to or for the benefit of third parties.

(2)  Section 3.4 of the Act, as enacted by the Statutes of Ontario, 1997, chapter 10, section 37 and amended by 2002, chapter 22, section 178, is amended by adding the following subsection:

Same

(2.1)  The Minister may establish guidelines respecting the allocation of money received by the Commission pursuant to an order described in subsection (2) or money received by the Commission as a payment to settle enforcement proceedings commenced by the Commission.

3.  Clause 75 (3) (a) of the Act, as re-enacted by the Statutes of Ontario, 2002, chapter 22, section 180, is amended by striking out "subsection (2)" and substituting "subsections (1) and (2)".

4.  (1)  Clause 126.2 (b) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 182, is repealed and the following substituted:

(b) would reasonably be expected to have a significant effect on the market price or value of a security.

(2)  Section 126.2 of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 182, is amended by adding the following subsection:

Same

(2)  A breach of subsection (1) does not give rise to a statutory right of action for damages otherwise than under Part XXIII or XXIII.1.

5.  Subsection 127 (3.1) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 183, is repealed and the following substituted:

Exception

(3.1)  A person or company is not entitled to participate in a proceeding in which an order may be made under paragraph 9 or 10 of subsection (1) solely on the basis that the person or company may be entitled to receive any amount paid under the order.

6.  Subsection 130 (1) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Liability for misrepresentation in prospectus

(1)  Where a prospectus, together with any amendment to the prospectus, contains a misrepresentation, a purchaser who purchases a security offered by the prospectus during the period of distribution or during distribution to the public has, without regard to whether the purchaser relied on the misrepresentation, a right of action for damages against,

. . . . .

7.  Subsection 130.1 (1) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 218, is repealed and the following substituted:

Liability for misrepresentation in offering memorandum

(1)  Where an offering memorandum contains a misrepresentation, a purchaser who purchases a security offered by the offering memorandum during the period of distribution has, without regard to whether the purchaser relied on the misrepresentation, the following rights:

1. The purchaser has a right of action for damages against the issuer and a selling security holder on whose behalf the distribution is made.

2. If the purchaser purchased the security from a person or company referred to in paragraph 1, the purchaser may elect to exercise a right of rescission against the person or company. If the purchaser exercises this right, the purchaser ceases to have a right of action for damages against the person or company.

8.  (1)  Subsection 131 (1) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Liability for misrepresentation in circular

(1)  Where a take-over bid circular sent to the security holders of an offeree issuer as required by Part XX, or any notice of change or variation in respect of the circular, contains a misrepresentation, a security holder may, without regard to whether the security holder relied on the misrepresentation, elect to exercise a right of action for rescission or damages against the offeror or a right of action for damages against,

. . . . .

(2)  Subsection 131 (2) of the Act is repealed and the following substituted:

Same

(2)  Where a directors' circular or a director's or officer's circular delivered to the security holders of an offeree issuer as required by Part XX, or any notice of change or variation in respect of the circular, contains a misrepresentation, a security holder has, without regard to whether the security holder relied on the misrepresentation, a right of action for damages against every director or officer who signed the circular or notice that contained the misrepresentation.

9.  The Act is amended by adding the following section:

Defence to liability for misrepresentation

132.1  (1)  A person or company is not liable in an action under section 130, 130.1 or 131 for a misrepresentation in forward-looking information if the person or company proves all of the following things:

1. The document containing the forward-looking information contained, proximate to that information,

i. reasonable cautionary language identifying the forward-looking information as such, and identifying material factors that could cause actual results to differ materially from a conclusion, forecast or projection in the forward-looking information, and

ii. a statement of the material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection set out in the forward-looking information.

2. The person or company had a reasonable basis for drawing the conclusions or making the forecasts and projections set out in the forward-looking information.

Exception

(2)  Subsection (1) does not relieve a person or company of liability respecting forward-looking information in a financial statement or forward-looking information in a document released in connection with an initial public offering.

10.  (1)  The definition of "core document" in section 138.1 of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is repealed and the following substituted:

"core document" means,

(a) where used in relation to,

(i) a director of a responsible issuer who is not also an officer of the responsible issuer,

(ii) an influential person, other than an officer of the responsible issuer or an investment fund manager where the responsible issuer is an investment fund, or

(iii) a director or officer of an influential person who is not also an officer of the responsible issuer, other than an officer of an investment fund manager,

a prospectus, a take-over bid circular, an issuer bid circular, a directors' circular, a rights offering circular, management's discussion and analysis, an annual information form, an information circular, annual financial statements and interim financial statements of the responsible issuer,

(b) where used in relation to,

(i) a responsible issuer or an officer of the responsible issuer,

(ii) an investment fund manager, where the responsible issuer is an investment fund, or

(iii) an officer of an investment fund manager, where the responsible issuer is an investment fund,

a prospectus, a take-over bid circular, an issuer bid circular, a directors' circular, a rights offering circular, management's discussion and analysis, an annual information form, an information circular, annual financial statements, interim financial statements and a report required by subsection 75 (2) of the responsible issuer, and

(c) such other documents as may be prescribed by regulation for the purposes of this definition; ("document essentiel")

(2)  The definition of "expert" in section 138.1 of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is repealed and the following substituted:

"expert" means a person or company whose profession gives authority to a statement made in a professional capacity by the person or company including, without limitation, an accountant, actuary, appraiser, auditor, engineer, financial analyst, geologist or lawyer, but not including an entity that is an approved rating organization for the purposes of National Instrument 44-101 of the Canadian Securities Administrators; ("expert")

(3)  The definition of "forward-looking information" in section 138.1 of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is repealed.

(4)  Clause (g) of the definition of "liability limit" in section 138.1 of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is repealed and the following substituted:

(g) in the case of each person who made a public oral statement, other than an individual referred to in clause (d), (e) or (f), the greater of,

(i) $25,000, and

(ii) 50 per cent of the aggregate of the person's compensation from the responsible issuer and its affiliates;

(5)  The definition of "responsible issuer" in section 138.1 of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is repealed and the following substituted:

"responsible issuer" means,

(a) a reporting issuer, or

(b) any other issuer with a real and substantial connection to Ontario, any securities of which are publicly traded; ("émetteur responsable")

11.  Clauses 138.2 (a) and (b) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, are repealed and the following substituted:

(a) the purchase of a security offered by a prospectus during the period of distribution;

(b) the acquisition of an issuer's security pursuant to a distribution that is exempt from section 53 or 62, except as may be prescribed by regulation;

12.  (1)  The English version of subsection 138.3 (1) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a person or company who acquires or disposes of an issuer's security" in the portion before clause (a) and substituting "a person or company who acquires or disposes of the issuer's security".

(2)  The English version of subclause 138.3 (1) (d) (i) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is repealed and the following substituted:

(i) the responsible issuer or any person or company acting on behalf of the responsible issuer to release the document, or

(3)  The English version of subsection 138.3 (2) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a person or company who acquires or disposes of an issuer's security" in the portion before clause (a) and substituting "a person or company who acquires or disposes of the issuer's security".

(4)  Subsection 138.3 (3) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out the portion before clause (a) and substituting the following:

Influential persons

(3)  Where an influential person or a person or company with actual, implied or apparent authority to act or speak on behalf of the influential person releases a document or makes a public oral statement that relates to a responsible issuer and that contains a misrepresentation, a person or company who acquires or disposes of the issuer's security during the period between the time when the document was released or the public oral statement was made and the time when the misrepresentation contained in the document or public oral statement was publicly corrected has, without regard to whether the person or company relied on the misrepresentation, a right of action for damages against,

. . . . .

(5)  The English version of subsection 138.3 (4) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a person or company who acquires or disposes of an issuer's security" in the portion before clause (a) and substituting "a person or company who acquires or disposes of the issuer's security".

(6)  Subsection 138.3 (5) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a proceeding" and substituting "an action".

(7)  Subsection 138.3 (6) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a proceeding" in the portion before clause (a) and substituting "an action".

(8)  Subsection 138.3 (7) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is repealed and the following substituted:

No implied or actual authority

(7)  In an action under subsection (2) or (3), if the person who made the public oral statement had apparent authority, but not implied or actual authority, to speak on behalf of the issuer, no other person is liable with respect to any of the responsible issuer's securities that were acquired or disposed of before that other person became, or should reasonably have become, aware of the misrepresentation.

13.  (1)  Subsection 138.4 (1) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a proceeding" in the portion before clause (a) and substituting "an action".

(2)  Subsection 138.4 (2) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a proceeding" and substituting "an action".

(3)  Subsection 138.4 (3) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a proceeding" in the portion before clause (a) and substituting "an action".

(4)  Subsection 138.4 (4) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a proceeding" in the portion before clause (a) and substituting "an action".

(5)  Subsection 138.4 (5) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a proceeding" in the portion before clause (a) and substituting "an action".

(6)  Subsection 138.4 (6) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a proceeding" in the portion before clause (a) and substituting "an action".

(7)  Subsection 138.4 (7) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "the courts" in the portion before clause (a) and substituting "the court".

(8)  The English version of clause 138.4 (7) (e) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is repealed and the following substituted:

(e) the existence, if any, and the nature of any system designed to ensure that the responsible issuer meets its continuous disclosure obligations;

(9)  Subsection 138.4 (8) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a proceeding" in the portion before clause (a) and substituting "an action".

(10)  Subsections 138.4 (9) and (10) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, are repealed and the following substituted:

Forward-looking information

(9)  A person or company is not liable in an action under section 138.3 for a misrepresentation in forward-looking information if the person or company proves all of the following things:

1. The document or public oral statement containing the forward-looking information contained, proximate to that information,

i. reasonable cautionary language identifying the forward-looking information as such, and identifying material factors that could cause actual results to differ materially from a conclusion, forecast or projection in the forward-looking information, and

ii. a statement of the material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection set out in the forward-looking information.

2. The person or company had a reasonable basis for drawing the conclusions or making the forecasts and projections set out in the forward-looking information.

Same

(9.1)  The person or company shall be deemed to have satisfied the requirements of paragraph 1 of subsection (9) with respect to a public oral statement containing forward-looking information if the person who made the public oral statement,

(a) made a cautionary statement that the oral statement contains forward-looking information;

(b) stated that,

(i) the actual results could differ materially from a conclusion, forecast or projection in the forward-looking information, and

(ii) certain material factors or assumptions were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information; and

(c) stated that additional information about,

(i) the material factors that could cause actual results to differ materially from the conclusion, forecast or projection in the forward-looking information, and

(ii) the material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information,

is contained in a readily-available document or in a portion of such a document and has identified that document or that portion of the document.

Same

(9.2)  For the purposes of clause (9.1) (c), a document filed with the Commission or otherwise generally disclosed shall be deemed to be readily available.

Exception

(10)  Subsection (9) does not relieve a person or company of liability respecting forward-looking information in a financial statement required to be filed under this Act or forward-looking information in a document released in connection with an initial public offering.

(11)  Subsection 138.4 (11) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a proceeding" in the portion before clause (a) and substituting "an action".

(12)  Subsection 138.4 (12) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a proceeding" and substituting "an action".

(13)  Subsection 138.4 (13) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a proceeding" and substituting "an action".

(14)  Subsection 138.4 (14) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a proceeding" in the portion before clause (a) and substituting "an action".

(15)  Subsection 138.4 (15) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a proceeding" in the portion before clause (a) and substituting "an action".

14.  Subparagraph 3 i of subsection 138.5 (2) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is repealed and the following substituted:

i. if the issuer's securities trade on a published market, the trading price of the issuer's securities on the principal market (as such terms are defined in the regulations) for the 10 trading days following the public correction of the misrepresentation or the disclosure of the material change in the manner required under this Act, or

15.  (1)  Subsection 138.6 (1) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a proceeding" and substituting "an action".

(2)  Subsection 138.6 (2) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a proceeding" and substituting "an action".

16.  Subsection 138.7 (1) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a proceeding" in the portion before clause (a) and substituting "an action".

17.  Subsection 138.8 (1) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "No proceeding" at the beginning and substituting "No action".

18.  (1)  Section 138.9 of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a proceeding" in the portion before clause (a) and substituting "an action".

(2)  Clause 138.9 (a) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a proceeding" and substituting "an action".

19.  Section 138.10 of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is repealed and the following substituted:

Restriction on discontinuation, etc., of action

138.10  An action under section 138.3 shall not be discontinued, abandoned or settled without the approval of the court given on such terms as the court thinks fit including, without limitation, terms as to costs, and in determining whether to approve the settlement of the action, the court shall consider, among other things, whether there are any other actions outstanding under section 138.3 or under comparable legislation in other provinces or territories in Canada in respect of the same misrepresentation or failure to make timely disclosure.

20.  Section 138.11 of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a proceeding" and substituting "an action".

21.  Section 138.12 of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a proceeding" and substituting "an action".

22.  Section 138.13 of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is repealed and the following substituted:

No derogation from other rights

138.13  The right of action for damages and the defences to an action under section 138.3 are in addition to, and without derogation from, any other rights or defences the plaintiff or defendant may have in an action brought otherwise than under this Part.

23.  (1)  Section 138.14 of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "proceeding" in the portion before clause (a) and substituting "action".

(2)  Subclause 138.14 (a) (ii) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a proceeding" and substituting "an action".

(3)  Subclause 138.14 (b) (ii) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a proceeding" and substituting "an action".

(4)  Subclause 138.14 (c) (ii) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a proceeding" and substituting "an action".

24.  Subsection 142 (2) of the Act, as amended by the Statutes of Ontario, 1994, chapter 11, section 378 and 2002, chapter 22, section 186, is amended by striking out the portion before clause (a) and substituting the following:

Exceptions

(2)  Subsections 13 (1), (3) and (4), sections 60, 122, 126, 126.1, 126.2, 129, 130, 130.1, 131, 134 and 135, Part XXIII.1 and section 139 do not apply to,

. . . . .

25.  Paragraph 55.2 of subsection 143 (1) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 187, is repealed and the following substituted:

55.2 Providing for the application of Part XXIII.1 to the acquisition of an issuer's security pursuant to a distribution that is exempt from section 53 or 62 and to the acquisition or disposition of an issuer's security in connection with or pursuant to a takeover bid or issuer bid.

55.2.1 Prescribing transactions or classes of transactions for the purposes of clause 138.2 (d).

26.  Subsection 143.12 (1) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 33, section 8, is repealed and the following substituted:

Review by Select or Standing Committee

Appointment of first advisory committee

(1)  On or before May 31, 2007, the Minister shall appoint an advisory committee to review the legislation, regulations and rules relating to matters dealt with by the Commission and the legislative needs of the Commission.

Appointment of subsequent advisory committees

(1.1)  The Minister shall appoint an advisory committee to perform the functions described in subsection (1) not later than 48 months after the appointment of the previous advisory committee appointed under subsection (1) or this subsection.

Commencement

27.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

Same

(2)  Sections 4 and 10 to 23 come into force on a day to be named by proclamation of the Lieutenant Governor.

SCHEDULE 35
AMENDMENT TO THE TAX TERMINOLOGY HARMONIZATION ACT, 2004

1.  Subsection 5 (2) of the Tax Terminology Harmonization Act, 2004 is amended by striking out "Subsections 1 (1) and (2) and sections 2, 3 and 4" at the beginning and substituting "Subsections 1 (1) and (2) and 2 (1) and (2) and sections 3 and 4".

Commencement

2.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

Same

(2)  Section 1 shall be deemed to have come into force on November 4, 2004.

SCHEDULE 36
AMENDMENTS TO THE TOBACCO TAX ACT

1.  Section 1 of the Tobacco Tax Act, as amended by the Statutes of Ontario, 1991, chapter 48, section 1, 1992, chapter 28, section 1, 1994, chapter 18, section 8, 1998, chapter 34, section 105, 2000, chapter 42, section 97, 2001, chapter 23, section 219 and 2004, chapter 7, section 19, is amended by adding the following definition:

"acquire" means, in respect of tobacco, to obtain tobacco by any means, including through manufacturing; ("acquérir")

2.  Subsections 5 (7) and (8) of the Act are amended by striking out "a notarial copy of the registration certificate" wherever it appears and substituting in each case "a true copy of the registration certificate".

3.  (1)  Subsection 6 (3) of the Act is repealed and the following substituted:

Information

(3)  Every interjurisdictional transporter shall maintain the information prescribed by the Minister in respect of every shipment of tobacco in bulk transported by the interjurisdictional transporter into or out of Ontario and shall maintain that information in a form approved by the Minister.

(2)  Subsection 6 (4) of the Act is amended by striking out "the notarial copy of the registration certificate" and substituting "a true copy of the registration certificate".

(3)  Clause 6 (5) (b) of the Act is repealed and the following substituted:

(b) the information required under subsection (3); and

(4)  Clause 6 (5) (c) of the Act is amended by striking out "the notarial copy of the registration certificate" and substituting "the true copy of the registration certificate".

(5)  Subsection 6 (11) of the Act is repealed and the following substituted:

Right to possession

(11)  For the purposes of an application under subsection (10), the applicant has the right to possession of the tobacco if,

(a) the driver of the vehicle, when the tobacco was seized, held a true copy of the registration certificate issued under this Act to the interjurisdictional transporter;

(b) in the case of tobacco transported on behalf of an importer or exporter, the driver of the vehicle, when the tobacco was seized, held a true copy of the registration certificate issued under this Act to the importer or exporter or held a true copy of the transit permit issued under this Act to the owner of the tobacco; and

(c) when the tobacco was seized, the driver of the vehicle held the information required under subsection (3) or the operator of the vehicle delivered the information required under subsection (3) within five days after the seizure.

4.  The Act is amended by adding the following section:

Unauthorized delivery of unmarked cigarettes

9.1  (1)  No person shall deliver, or cause to be delivered, unmarked cigarettes to a person in Ontario who is not authorized under this Act or the regulations to purchase, possess, store or sell unmarked cigarettes.

Same

(2)  Unless authorized under this Act or the regulations, no person shall deliver, or cause to be delivered, to another person unmarked cigarettes that are intended to be sold to consumers liable to pay tax under section 2.

Penalty

(3)  Every person who contravenes subsection (1) or (2) shall pay a penalty, when assessed therefor, equal to the tax that would be payable if the unmarked cigarettes were marked cigarettes sold to a consumer liable to pay tax under section 2.

Offence

(4)  Every person who contravenes subsection (1) or (2) is guilty of an offence and on conviction is liable to,

(a) a fine of not less than $1,000 and not more than $10,000; and

(b) an additional fine of not less than three times the amount of tax that would have been payable if the unmarked cigarettes were marked cigarettes sold to a consumer liable to pay tax under section 2.

5.  (1)  Subsection 10 (3) of the Act is amended by striking out "a notarial copy of the permit" at the end and substituting "a true copy of the permit".

(2)  Subsection 10 (4) of the Act is amended by striking out "notarial copies of the transit permit" at the end and substituting "true copies of the transit permit".

6.  The Act is amended by adding the following section:

Agreement to share information

13.4  For the purposes of enforcing and administering this Act, the Minister, on behalf of Her Majesty in right of Ontario, may enter into an agreement with the Government of Canada respecting the sharing of information gathered under this Act.

7.  (1)  Subsection 19 (3.1) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 108, is amended by striking out "subsections (3.2) and (3.3)" and substituting "subsections (3.2) to (3.3)".

(2)  Section 19 of the Act, as amended by the Statutes of Ontario, 1994, chapter 18, section 8, 2000, chapter 42, section 108 and 2001, chapter 23, section 229, is amended by adding the following subsections:

Exception, waiver of limitation

(3.2.1)  Despite subsection (3.1), the Minister may assess or reassess a person at any time if the person has filed with the Minister a waiver in a form approved by the Minister before the expiry of the time provided in subsection (3.1).

Revocation of waiver

(3.2.2)  If a person files a waiver under subsection (3.2.1), the person may file a notice of revocation of the waiver in a form approved by the Minister.

Effect of revocation

(3.2.3)  If a person files a notice of revocation of the waiver under subsection (3.2.2), the Minister shall not issue an assessment or reassessment under subsection (3.1) in reliance on the waiver more than one year after the date on which the notice of revocation is filed.

8.  The Act is amended by adding the following section:

Seizure of unmarked cigarettes

23.1  (1)  If, on an inspection under subsection 23 (1), a person authorized by the Minister discovers that a wholesaler or retail dealer is in possession of unmarked cigarettes, and the person has reasonable and probable grounds to believe that the possession is contrary to the provisions of clause 29 (1) (b), the person may, subject to subsection (2), seize, impound, hold and dispose of the unmarked cigarettes.

Application to court

(2)  Unmarked cigarettes seized under subsection (1) are forfeited to Her Majesty to be disposed of as the Minister directs unless, within 30 days following the seizure, the person from whom the unmarked cigarettes were seized, or the owner of the unmarked cigarettes, applies to the Superior Court of Justice to establish the right to possession of the unmarked cigarettes.

Right to possession of unmarked cigarettes

(3)  For the purposes of an application under subsection (2), the applicant has a right to possession of the cigarettes if, at the time the seizure was made, the premises from which the unmarked cigarettes were seized was a mark-point or designated warehouse and the applicant was the holder of a valid permit issued under subsection 9 (1) with respect to the premises.

Disposal pending final determination by court

(4)  Where a final order is not made within 60 days after the filing of an application under subsection (2), the Minister may dispose of the unmarked cigarettes and retain the proceeds, if any, pending the determination of the application.

Order

(5)  If the court is satisfied on an application under subsection (2) that the applicant has a right to possession of the unmarked cigarettes, the court may order that the unmarked cigarettes be returned to the applicant or that the proceeds of sale of the unmarked cigarettes be paid to the applicant.

Forfeiture after dismissal of application

(6)  On dismissal of an application under subsection (2) and the expiry of the appeal period provided therefor, the unmarked cigarettes are forfeited to Her Majesty to be disposed of as the Minister directs.

Proceeds of sale

(7)  Where a sale of unmarked cigarettes is authorized under subsection (2) or (6), or where the proceeds of a sale are retained under subsection (4) and the application is dismissed, the proceeds of the sale remaining after payment of the costs incurred by the Minister in seizing, storing and disposing of the unmarked cigarettes shall be paid into the Consolidated Revenue Fund.

9.  (1)  Subsection 24 (1) of the Act, as amended by the Statutes of Ontario, 1991, chapter 48, section 4, is amended by striking out "and" at the end of clause (b) and by striking out clause (c) and substituting the following:

(c) subject to subsections (2), (2.2) and (2.4), may seize and take away any of the manifests, records, accounts, vouchers, papers or things and retain them until they are produced in any court proceedings; and

(d) may use any investigative technique, procedure or test that is, in the person's opinion, necessary to determine whether cigarettes found during a detention are marked or stamped in accordance with this Act and the regulations.

(2)  Subsection 24 (2) of the Act is repealed and the following substituted:

Application for retention of documents

(2)  If documents are seized under subsection (1), the Minister shall, within 14 days, apply to a justice under the Provincial Offences Act for an order to permit the retention of the documents.

Application to include information under oath

(2.1)  An application under subsection (2) must be supported by information under oath from a person who has reasonable and probable grounds for believing that the documents may afford evidence of a contravention of this Act or the regulations.

Order of justice re seized documents

(2.2)  If the justice who considers an application under subsection (2) is satisfied, on reasonable grounds, that documents seized may afford evidence of a contravention of this Act or the regulations, the justice may, without notice, order that the documents be retained by a person named in the order for no longer than three months from the date of seizure and may make any provisions that, in the opinion of the justice, are necessary for the preservation of the documents.

Same

(2.3)  If the justice who considers an application under subsection (2) is not satisfied, on reasonable grounds, that documents seized may afford evidence of a contravention of this Act or the regulations, he or she may direct that the documents be returned to the person from whom they were seized.

Time limit for retention

(2.4)  No documents shall be retained under an order made under subsection (2.2) for a period of more than three months from the date of seizure unless, before the expiry of that period,

(a) an application to the justice is made for retention of the documents for an additional period and the justice is satisfied that, having regard to the nature of the inspection, the further retention of the documents for a specified period is warranted and makes an order for the continuing retention of the documents for the specified period;

(b) a proceeding is instituted in which the retained document may be required; or

(c) the owner of the documents consents to the continued retention of the documents.

(3)  Subsection 24 (3) of the Act, as amended by the Statutes of Ontario, 2004, chapter 7, section 30, is repealed and the following substituted:

Seizure and disposal of tobacco

(3)  Subject to subsections (4), (4.1), (5) and (6), a person who is authorized by the Minister for the purpose may seize, impound, hold and dispose of tobacco found following a detention under subsection (1) if one of the following circumstances exists:

1. More than 200 unmarked cigarettes are found in the control of a person who does not hold a permit under subsection 9 (1) and who is not otherwise authorized by this Act or the regulations to purchase, possess, store, sell or transport unmarked cigarettes.

2. More than 200 unmarked cigarettes are being transported or stored in Ontario for a person described in paragraph 1.

3. Tobacco in bulk is found in the control of a person who has not been designated as a collector under subsection 4 (1) or (1.3), does not hold a registration certificate under subsection 5 (1) or 7 (1) and does not hold a permit under subsection 3 (1) or 8 (2).

4. Tobacco in bulk is being transported or stored in Ontario for a person described in paragraph 3.

(4)  Subsection 24 (4) of the Act, as amended by the Statutes of Ontario, 1998, chapter 34, section 107, is amended by striking out the portion before clause (a) and substituting the following:

Saving, tobacco in bulk

(4)  Despite subsection (3), if tobacco found following a detention under subsection (1) is tobacco in bulk, no seizure, impounding, holding or disposal shall be made of the tobacco in bulk if the person from whom it would have been seized,

. . . . .

(5)  Clause 24 (4) (d) of the Act is repealed and the following substituted:

(d) has in the person's possession the original or a true copy of a transit permit issued to the owner of the tobacco in bulk under subsection 10 (1).

(6)  Section 24 of the Act, as amended by the Statutes of Ontario, 1991, chapter 48, section 4, 1994, chapter 18, section 8, 1998, chapter 34, section 107, 2001, chapter 23, section 234 and 2004, chapter 7, section 30, is amended by adding the following subsection:

Saving, unmarked cigarettes

(4.1)  Despite subsection (3), where tobacco found following a detention under subsection (1) is in the form of unmarked cigarettes, no seizure, impounding, holding or disposal shall be made of the tobacco if the person from whom it would have been seized,

(a) is an interjurisdictional transporter registered under subsection 6 (1) who has the documents and information described in subsection 6 (5) in their possession; or

(b) has in their possession the original or a true copy of a transit permit issued to the owner of the unmarked cigarettes under subsection 10 (1).

(7)  Subsection 24 (5) of the Act, as amended by the Statutes of Ontario, 2001, chapter 23, section 234, is amended by striking out "in bulk" wherever it appears.

(8)  Subsection 24 (6) of the Act is repealed and the following substituted:

Right to possession of tobacco

(6)  For the purposes of an application under subsection (5), the applicant has a right to possession of the tobacco if the owner, or the person for whom the tobacco was being transported, was, at the time the seizure was made, a person specified in subsection (3), (4) or (4.1) as someone from whom tobacco was not to be seized.

(9)  Subsections 24 (7), (8), (9) and (10) of the Act are amended by striking out "in bulk" wherever it appears.

(10)  Subsection 24 (12) of the Act, as amended by the Statutes of Ontario, 2001, chapter 23, section 234, is repealed and the following substituted:

Penalty

(12)  Every person from whom tobacco is seized under subsection (3) shall pay a penalty, when assessed therefor, equal to three times the tax that would have been payable under section 2 if the seized tobacco had been sold to a consumer liable to pay tax under this Act.

10.  (1)  Section 29 of the Act, as amended by the Statutes of Ontario, 1994, chapter 18, section 8 and 2004, chapter 7, section 31, is amended by adding the following subsections:

Seizure of unmarked cigarettes

(1.1)  If a person authorized by the Minister has reasonable and probable grounds to believe that a person is in possession of unmarked cigarettes contrary to the provisions of clause (1) (b), the person may, subject to subsection (1.2), stop and detain the person and may seize, impound, hold and dispose of the unmarked cigarettes.

Application

(1.2)  Unmarked cigarettes seized under subsection (1.1) are forfeited to Her Majesty to be disposed of as the Minister directs unless, within 30 days following the seizure, the person from whom the unmarked cigarettes were seized, or the owner of the unmarked cigarettes, applies to the Superior Court of Justice to establish a right to possession of the unmarked cigarettes.

Right to possession of unmarked cigarettes

(1.3)  For the purposes of an application under subsection (1.2), the applicant has a right to possession of the unmarked cigarettes if, at the time the seizure was made,

(a) the applicant was a consumer with possession or control of not more than 200 unmarked cigarettes that were not for sale and were not kept or offered for sale; or

(b) the applicant was the holder of a valid permit issued under subsection 9 (1).

Disposal pending final determination by court

(1.4)  If a final order under this section is not made within 60 days after the filing of the application under subsection (1.2), the Minister may dispose of the unmarked cigarettes and retain the proceeds, if any, pending the determination of the application.

Order

(1.5)  If the court is satisfied on an application under subsection (1.2) that the applicant has a right to possession of the unmarked cigarettes, the court may order that the unmarked cigarettes be returned to the applicant or that the proceeds of sale of the unmarked cigarettes be paid to the applicant.

Forfeiture after dismissal of application

(1.6)  On dismissal of an application under subsection (1.2) and the expiry of the appeal period provided therefor, the unmarked cigarettes are forfeited to Her Majesty to be disposed of as the Minister directs.

Proceeds of sale

(1.7)  Where a sale of unmarked cigarettes is authorized under subsection (1.2) or (1.6), or where the proceeds of a sale are retained under subsection (1.4) and the application is dismissed, the proceeds of the sale remaining after payment of the costs incurred by the Minister in seizing, storing and disposing of the unmarked cigarettes shall be paid into the Consolidated Revenue Fund.

(2)  Subsection 29 (2.1) of the Act, as re-enacted by the Statutes of Ontario, 2004, chapter 7, section 31, is repealed and the following substituted:

Forfeiture

(2.1)  All unmarked cigarettes in respect of which a person has been convicted of an offence under subsection (2) shall be forfeited to Her Majesty to be disposed of in any manner determined by the Minister.

11.  The Act is amended by adding the following section:

Prohibition on possession of untaxed cigars and other tobacco

Definition

29.1  (1)  In this section,

"other tobacco" means tobacco other than cigarettes and cigars.

Possession of untaxed cigars and other tobacco

(2)  No person shall, unless permitted to do so under this Act or the regulations, have in his or her possession more than 50 cigars or more than one kilogram of other tobacco for which the person cannot prove that the tax that would be payable under section 2 has been paid.

Offence

(3)  Every person who contravenes subsection (2) is guilty of an offence and on conviction is liable to,

(a) a fine of not less $500 and not more than $10,000; and

(b) an additional fine of not less than three times the amount of tax that would have been payable under section 2 if the cigars or other tobacco had been sold to a consumer liable to pay tax under this Act.

Imprisonment

(4)  Where a person convicted of an offence under subsection (3) is found to have been in possession of 200 or more cigars or 10 kilograms or more of other tobacco contrary to subsection (2), the court may impose a term of imprisonment of not more than two years in addition to any fines levied under subsection (3).

Forfeiture

(5)  All cigars and other tobacco in respect of which a person is convicted of an offence under this section shall be forfeited to Her Majesty to be disposed of in any manner determined by the Minister.

Penalty, selling

(6)  Every person who, except as permitted under this Act or the regulations, sells or offers or keeps for sale in Ontario cigars or other tobacco for which the person cannot prove that the tax that would be payable under section 2 has been paid shall pay a penalty, when assessed therefor, in respect of all the cigars and other tobacco sold or offered or kept for sale equal to three times the amount of tax that would have been payable under section 2 had the cigars or other tobacco been sold to a consumer liable to pay tax under this Act.

Penalty, possession

(7)  Every person who, except as permitted under this Act or the regulations,

(a) has in his or her possession more than 50 cigars or more than one kilogram of other tobacco for which the person cannot prove that the tax that would be payable under section 2 has been paid; or

(b) has in his or her possession for the purposes of sale or has received or purchased for the purposes of sale any amount of cigars or other tobacco for which the person cannot prove that the tax that would be payable under section 2 has been paid,

shall pay a penalty, when assessed therefor, equal to three times the amount of tax that would have been payable under section 2 had the cigars or other tobacco been sold to a consumer liable to pay tax under this Act.

Additional penalty

(8)  Where the amount of cigars referred to in subsection (6) or (7) is 200 or more or the amount of other tobacco referred to in subsection (6) or (7) is 10 kilograms or more, a person liable to a penalty under that subsection may be assessed an additional penalty equal to five times the amount of tax that would have been payable under section 2 had the cigars or other tobacco been sold to a consumer liable to pay tax under this Act.

12.  Subsections 31 (3) and (4) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 34, section 109, are repealed and the following substituted:

Forfeiture

(3)  All tobacco in respect of which a person is convicted of an offence under subsection (2) shall be forfeited to Her Majesty to be disposed of in any manner determined by the Minister, to the extent that it has not been forfeited or disposed of under another provision of this Act.

13.  The Act is amended by adding the following section:

Disclosure of names and addresses

32.1  (1)  The Minister shall disclose the names and addresses of the following persons for purposes related to the administration of this Act and may impose conditions and restrictions with respect to the disclosure:

1. Each person who holds a wholesaler's permit under this Act.

2. Each person who is designated under subsection 4 (1) or (1.3) to collect tax.

3. Each importer or exporter who holds a registration certificate under subsection 5 (1).

4. Each interjurisdictional transporter who holds a registration certificate under subsection 6 (1).

5. Each manufacturer who holds a registration certificate under subsection 7 (1).

6. Each tear tape manufacturer who holds a permit under subsection 7.1 (1).

7. Each person who holds a permit referred to in subsection 8 (2) to mark cigarettes.

8. Each person who holds a permit referred to in subsection 8 (3) to stamp cigarettes.

9. Each person who holds a permit referred to in subsection 9 (1) to purchase and sell unmarked cigarettes.

Exception

(2)  Despite subsection (1), the Minister shall not disclose a person's name or address if, in the Minister's opinion, the disclosure is not necessary for the purposes of this Act.

14.  (1)  Subsection 35 (2.1) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 34, section 110 and amended by 2004, chapter 7, section 34, is repealed and the following substituted:

Forfeiture

(2.1)  All tobacco in respect of which a person is convicted of an offence under subsection (2) shall be forfeited to Her Majesty to be disposed of in any manner determined by the Minister, to the extent that it has not been forfeited or disposed of under another provision of this Act.

(2)  Subsection 35 (2.2) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 34, section 110, is repealed.

15.  The Act is amended by adding the following sections:

Order for production

Definitions

36.1  (1)  In this section,

"document" means a record, including a record prepared or stored in an electronic format, respecting the manufacture, purchase, sale, transportation, storage, distribution, delivery, consignment or possession of a tobacco product, and includes a ledger, account, invoice, receipt, voucher, banking record, bill of lading, memorandum, correspondence and e-mail message; ("document")

"justice" means a justice under the Provincial Offences Act; ("juge")

"person" means an individual, corporation, partnership, syndicate, trust or other business entity whether incorporated or not. ("personne")

Application for order

(2)  A provincial offences officer who is investigating a contravention of this Act or the regulations may make an application to a justice without notice for an order requiring any person, other than a person who is a subject of the investigation, to produce for inspection a document that is relevant to the investigation.

Information included in an application

(3)  An application under subsection (2) shall include information in writing under oath that there are reasonable grounds to believe that,

(a) an offence under this Act has been committed;

(b) the document or documents described in the application may afford evidence of the commission of the offence; and

(c) the person who is the subject of the application has possession or control of the document or documents described in the application.

Order

(4)  A justice who is satisfied that the requirements of subsection (3) have been met may issue an order requiring the person to produce for inspection the document or documents within such reasonable time as is stipulated in the order.

Terms and conditions

(5)  A justice may include in an order such terms and conditions as the justice considers necessary in the circumstances and, without restricting the generality of the foregoing, may include terms and conditions,

(a) to protect a communication between a solicitor and a client that may be privileged;

(b) to prohibit access to information relating to the order or to documents produced by the person to whom the order is directed;

(c) relating to the service of, or compliance with, the order.

Self-incrimination

(6)  No person is excused from complying with an order made under this section on the grounds that a document required to be produced under the order may tend to incriminate them or subject them to any proceeding or penalty.

Service on unincorporated person

(7)  An order under this section that is directed to an unincorporated person shall be served by a provincial offences officer by delivering it personally to the person, if the person is an individual, or to an owner, partner, representative or agent of the unincorporated person, in any other case.

Service on incorporated person

(8)  An order under this section that is directed to a person that is a corporation shall be served by a provincial offences officer by delivering it personally to an officer, director, manager or agent of the corporation, or to an individual apparently in charge of premises in Ontario that are occupied or controlled by the corporation.

Service outside Ontario

(9)  An order under this section may be served outside Ontario by sending it by registered mail to the person to whom it is directed.

Document in electronic format

(10)  If a document described in an order issued under this section was prepared or is stored or maintained in an electronic format, the person to whom the order is directed or upon whom it is served shall, on request, provide the officer serving the order with a paper printout or other legible copy of the document.

Photocopies

(11)  The person to whom an order issued under this section is directed or the person upon whom it is served shall, on request, permit the officer who serves the order to prepare a photocopy of any document described in the order and the officer who serves the order may certify the photocopy as a true copy of the original document.

Report to the justice

(12)  An officer who serves an order issued under this section shall, within 14 days following the expiry of the period specified for compliance with the order, file a report with the justice who issued the order or, if the justice who issued the order is unavailable, with the Regional Senior Justice of the Peace for the region in which the order was served, containing particulars of the date and manner of service and the subsequent compliance or non-compliance with the order by the person to whom the order is directed.

Application for exemption

(13)  The person to whom an order under this section is directed may, before the date specified for compliance with the order, apply in writing to the justice who issued the order or, if the justice who issued the order is unavailable, to the Regional Senior Justice of the Peace for the region in which the order was served, for an exemption from the requirement to produce a document described in the order.

Material filed with Regional Senior Justice

(14)  If a report under subsection (12) or an application under subsection (13) is filed with a Regional Senior Justice of the Peace instead of with the justice who issued the order, the Regional Senior Justice of the Peace may assign the matter to another justice in the region in which the order was served for such further action as may be necessary in the circumstances.

Notice by applicant

(15)  The person to whom an order is directed shall give written notice to the officer who served the order or to the Minister of his or her intention to make an application under subsection (13) and shall give the notice not less than 10 days before the date specified for compliance with the order.

Suspension of duty to comply

(16)  If an application is made under subsection (13), the duty to comply with an order is suspended with respect to a document specified in the application until a justice makes a determination in respect of the application.

Exemption

(17)  A justice may exempt an applicant from complying with an order issued under this section if he or she is satisfied that,

(a) production of a document specified in the order would disclose information that is privileged or otherwise protected by law from disclosure;

(b) it is unreasonable to require the applicant to produce the document; or

(c) the document is not in the possession or control of the applicant.

May impose conditions if not exempt

(18)  If a justice determines that an applicant is not exempt from complying with an order or a portion of it, the justice may impose such conditions for compliance on the applicant as he or she considers necessary and appropriate in the circumstances.

Offence

(19)  Every person who fails to comply with an order issued under this section is guilty of an offence and is liable on conviction to a fine of not less than $200 for each day during which the failure to comply continues.

Authorization to use investigative technique, procedure or test

36.2  (1)  A person authorized by the Minister may include in an application for a search warrant under section 158 of the Provincial Offences Act a request for authorization to use any investigative technique, procedure or test described in the warrant to obtain evidence of a contravention of this Act or the regulations.

Same

(2)  A justice considering a request under subsection (1) may issue a warrant authorizing the use of an investigative technique, procedure or test if the justice is satisfied on information under oath that there are reasonable grounds to believe that evidence relating to the commission of an offence under this Act or the regulations will be obtained through the use of the investigative technique, procedure or test.

16.  Section 37 of the Act is repealed and the following substituted:

Interjurisdictional settlement of competing tax claims

37.  (1)  For the purpose of simplifying compliance with this Act and the administration and collection of the tax imposed by this Act, and in order to provide for reciprocal arrangements to settle competing claims for tax on the acquisition and use of tobacco by persons carrying on business in more than one jurisdiction, the Minister may enter into an agreement, on such terms and conditions as are considered necessary and expedient, with another jurisdiction providing that tax paid to one jurisdiction on the acquisition there of tobacco that is transferred to the other jurisdiction and that becomes liable to tax in the other jurisdiction under this Act or any similar legislation in force in the other jurisdiction may be paid by one jurisdiction to the other in reduction of the liability to the tax arising in the jurisdiction receiving the payment and in lieu of refunding the tax to the person who paid it and who became liable for the similar tax in the other jurisdiction.

Payment for services

(2)  An agreement entered into under subsection (1) may authorize payments to the other jurisdiction for services provided under the agreement and may authorize the other jurisdiction to deduct the amount of the payments from amounts payable to the Minister under the agreement.

Commencement

17.  This Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

SCHEDULE 37
AMENDMENTS TO THE TREASURY BOARD ACT, 1991

1.  Section 7 of the Treasury Board Act, 1991, as amended by the Statutes of Ontario, 2002, chapter 8, Schedule N, section 1, is repealed and the following substituted:

Special warrants

7.  (1)  If the Legislature is not in session and a matter arises that requires the incurring of expenditures for which there is no appropriation by the Legislature or for which the appropriation is insufficient, the Lieutenant Governor in Council, upon the report of the Board estimating the amount required for the expenditure, may order a special warrant to be prepared and to be signed by the Lieutenant Governor, authorizing the incurring of expenditures in the amount estimated to be required, and the amount shall be incurred as specified in the special warrant.

Where appropriation exists

(2)  Subject to subsection (4), if a special warrant is issued with respect to an expenditure for which there is an appropriation, the amount provided by the special warrant shall be added to and shall be deemed to be part of the appropriation for the fiscal year in which the special warrant is issued.

Where no appropriation exists

(3)  Subject to subsection (4), if a special warrant is issued with respect to an expenditure for which there is no appropriation, the amount provided by the special warrant shall be deemed to be an appropriation for the fiscal year in which the special warrant is issued.

Warrant may apply to next fiscal year

(4)  A special warrant issued in a fiscal year may provide that it applies with respect to the next fiscal year and it is an appropriation for that next fiscal year.

2.  Section 7.1 of the Act, as enacted by the Statutes of Ontario, 2002, chapter 8, Schedule N, section 2, is repealed.

3.  Section 8 of the Act, as amended by the Statutes of Ontario, 2002, chapter 8, Schedule N, section 3, is repealed and the following substituted:

Board orders

8.  (1)  Despite section 11.2 of the Financial Administration Act, the Board may by order authorize expenditures to supplement the amount of any appropriation for a fiscal year if the amount provided in the appropriation is insufficient to carry out the purpose for which the appropriation was made.

Report required

(2)  An order may be made under subsection (1) only if the Board has received from the ministry responsible for the program to which the proposed supplementary appropriation relates, or from a person or officer prescribed by the regulations made under this Act, a report in writing setting out the necessity for further expenditures and the reason why the appropriation, unless supplemented, is insufficient.

Board orders in favour of contingency fund

(3)  Despite section 11.2 of the Financial Administration Act, the Board may by order supplement the amount of any appropriation that represents a reserve for future contingencies if the Board considers it advisable to do so.

Expenditures to be offset by reduction on other appropriation

(4)  An order under subsection (1) or (3) shall provide that the supplementary appropriation be offset by reducing the amount available under any other appropriation for the same fiscal year that is not exhausted and that, in the opinion of the Board, is unlikely to be fully exhausted in the fiscal year.

Timing

(5)  An order under subsection (1) or (3) may be made at any time before the books of the Government of Ontario for the fiscal year are closed.

Post-fiscal year-end Board orders to be reported in the Public Accounts

(6)  If the Board issues an order under this section at any time after the end of a fiscal year to supplement the amount of an appropriation for that fiscal year because the appropriation became insufficient as a result of an adjustment arising out of the audit of the Public Accounts for that fiscal year, the ministry responsible for the program that received the supplementary appropriation shall prepare a statement setting out the circumstances that gave rise to the need for the order and the statement shall be included in the Public Accounts for that fiscal year.

4.  Section 8.1 of the Act, as enacted by the Statutes of Ontario, 2002, chapter 8, Schedule N, section 4, is repealed.

Commencement

5.  This Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

SCHEDULE 38
AMENDMENTS RELATING TO CLASSES OF INSURANCE

Corporations Act

1.  Subsection 140 (1) of the Corporations Act is repealed and the following substituted:

Insurance Act definitions

(1)  In this Part, unless the context otherwise requires, words and expressions defined under section 1 or 43 of the Insurance Act have the same meaning as in that Act.

Family Law Act

2.  (1)  The English version of paragraph 4 of subsection 4 (2) of the Family Law Act is amended by striking out "life insurance, as defined in the Insurance Act" and substituting "life insurance, as defined under the Insurance Act".

(2)  The English version of subclause 6 (6) (a) (i) of the Act is amended by striking out "life insurance, as defined in the Insurance Act" and substituting "life insurance, as defined under the Insurance Act".

(3)  The English version of clause 34 (1) (i) of the Act, as amended by the Statutes of Ontario, 1999, chapter 6, section 25, is amended by striking out "life insurance as defined in the Insurance Act" and substituting "life insurance as defined under the Insurance Act".

Registered Insurance Brokers Act

3.  (1)  The definition of "contract" in section 1 of the Registered Insurance Brokers Act is repealed and the following substituted:

"contract" has the same meaning as in the Insurance Act, but does not include a contract of life insurance as defined under that Act; ("contrat")

(2)  The definition of "insurance" in section 1 of the Act is repealed and the following substituted:

"insurance" has the same meaning as in the Insurance Act, but does not include life insurance as defined under that Act; ("assurance")

Commencement

4.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

Same

(2)  Sections 1, 2 and 3 come into force on the day subsection 4 (1) of Schedule H to the Government Efficiency Act, 2002 comes into force.

SCHEDULE 39
NORTHERN ONTARIO GROW BONDS CORPORATION ACT, 2004

Interpretation

Definition

1.  In this Act,

"Minister" means the Minister of Northern Development and Mines or such other member of the Executive Council as may be assigned the administration of this Act under the Executive Council Act.

Corporate Matters

Corporation established

2.  (1)  A corporation without share capital known in English as the Northern Ontario Grow Bonds Corporation and in French as Société d'émission d'obligations de développement du Nord de l'Ontario is hereby established.

Composition

(2)  The Corporation is composed of the members of its board of directors.

Corporation to change name

(3)  The Lieutenant Governor in Council may, by regulation, change the name of the Corporation.

Objects of the Corporation

3.  The following are the objects of the Corporation:

1. To foster business development in northern Ontario.

2. To provide debt financing to be used by eligible businesses and eligible entities for such purposes as may be prescribed by the regulations.

3. To engage in such other activities as the Lieutenant Governor in Council may specify for the economic benefit of northern Ontario.

Powers of the Corporation

4.  (1)  The Corporation has the capacity, rights, powers and privileges of a natural person, except as limited by this Act, including the power to obtain funding to finance its activities.

Funding

(2)  Without limiting the generality of subsection (1), the Corporation may obtain funding by borrowing money and by issuing bonds, debentures and other securities, with or without the guarantee of the Province of Ontario.

Restriction on borrowing, etc.

(3)  The Corporation shall not borrow, invest or manage financial risks unless the activity is authorized by a by-law and the Minister of Finance has consented to the by-law.

Restriction re subsidiaries, etc.

(4)  The Corporation shall not establish or acquire an interest in a subsidiary, trust, partnership or other entity without the consent of the Minister of Finance.

Consent of the Minister

(5)  The consent of the Minister of Finance referred to in subsection (3) or (4) may be general or particular and may include such terms as the Minister of Finance considers advisable.

Delegation of authority

(6)  The Minister of Finance may delegate to any employee or officer of the Ontario Financing Authority his or her power to consent to a by-law referred to in subsection (3).

Status as Crown agent

5.  The Corporation is a Crown agent for all purposes.

Board of directors

6.  (1)  The board of directors of the Corporation shall be composed of at least three and not more than 12 members who are appointed by the Lieutenant Governor in Council.

Term of office

(2)  The term of office of a director is determined by the Lieutenant Governor in Council but shall not exceed three years.

Reappointment

(3)  A director is eligible to be reappointed.

Chair and vice-chairs

(4)  The Lieutenant Governor in Council shall designate a director as the chair and may designate one or more directors as vice-chairs.

Powers and duties of the board

7.  (1)  The board of directors shall manage or supervise the management of the business and affairs of the Corporation.

By-laws

(2)  The board may pass by-laws and resolutions regulating its proceedings and generally for the conduct and management of the affairs of the Corporation.

By-laws to establish powers and duties of chair, etc.

(3)  The board shall establish the powers and duties of the chair and vice-chair by by-law.

Quorum

(4)  Unless the by-laws otherwise provide, a quorum at a meeting of the board is a majority of the directors then in office.

Resolutions

(5)  Subject to paragraph 2 of subsection (7), a resolution of the board may be passed by a majority of the directors present at the meeting at which the resolution is voted on.

Resolution in lieu of meeting

(6)  A resolution in writing signed by all of the directors is as valid as if it had been passed at a meeting of the board.

Rules when fewer than three directors

(7)  The following rules apply during any period of time in which there are fewer than three directors in office:

1. Subject to paragraph 2, the remaining director or directors may continue to manage or supervise the management of the business and affairs of the Corporation.

2. Until the vacancies are filled, no resolution of the board shall be effective unless approved by all of the directors remaining in office.

Delegation

(8)  Subject to its by-laws, the board may delegate any of its powers or duties to a committee of the board or to one or more directors, subject to such conditions and restrictions as may be specified by the board.

Same

(9)  Subject to its by-laws, the board may delegate any of its powers or duties to manage the business and affairs of the Corporation to one or more officers of the Corporation.

Restriction on delegation

(10)  The board shall not delegate its power to make by-laws or to approve the financial statements or annual reports of the Corporation.

Telephone meetings

(11)  Unless the by-laws otherwise provide, if all the directors of the Corporation present at or participating in a meeting of the board or of a committee of the board consent, the meeting may be held using telephone, electronic or other telecommunications facilities that permit all persons participating in the meeting to communicate with one another simultaneously and instantaneously.

Policies and directives of the Minister

8.  (1)  The Minister may issue policies or directives in writing to the Corporation on matters relating to its operations and the exercise of its powers.

Implementation

(2)  The board of directors of the Corporation shall ensure that the policies and directives issued to the Corporation are implemented promptly and efficiently.

Chief executive officer

9.  The Lieutenant Governor in Council may appoint a chief executive officer for the Corporation.

Employees

10.  (1)  The Corporation may appoint employees under the Public Service Act.

Same

(2)  Subsection (1) does not limit the power of the Corporation to hire employees otherwise than under the Public Service Act.

Same

(3)  The chief executive officer of the Corporation has the powers of a deputy minister and the chair of the board of directors has the powers of a minister under the Public Service Act with respect to the employees of the Corporation to whom that Act applies.

Agreements to provide services

(4)  Any minister of the Crown or chair of a Crown agency may enter into agreements with the Corporation for the provision by employees of the Crown or the Crown agency of any service required by the Corporation.

Annual report

11.  (1)  The Corporation shall, within 90 days after the end of every fiscal year, submit to the Minister an annual report on its affairs during that fiscal year, signed by the chair of its board of directors.

Financial statements

(2)  The audited financial statements of the Corporation must be included in the annual report.

Tabling

(3)  The Minister shall submit the annual report to the Lieutenant Governor in Council and shall then table the report in the Assembly.

Disclosure of financial statements

(4)  The Corporation may give its financial statements to other persons before the Minister complies with subsection (3).

Other reports

12.  (1)  The Corporation shall provide such other reports and information to the Minister as the Minister may require.

Reports to the Minister of Finance

(2)  The Corporation shall provide a copy of its annual report, including its financial statements, to the Minister of Finance within 90 days after the end of each fiscal year and shall provide such other reports and information to the Minister of Finance as the Minister of Finance may require.

Financial Matters

By-laws authorizing borrowing

13.  A by-law to authorize borrowing by the Corporation must include the following information:

1. The maximum principal amount of borrowing that may be outstanding at any time under the authority of the by-law.

2. The period, not to exceed five years, during which the borrowing authority may be exercised.

3. The date after which no funds are permitted to remain outstanding under the authority of the by-law.

4. Such other terms and conditions as the Minister of Finance may approve.

Status and use of revenues

14.  Despite the Financial Administration Act, the revenues received by the Corporation do not form part of the Consolidated Revenue Fund.

Audits

15.  The Provincial Auditor may audit the accounts and financial transactions of the Corporation each year.

Financial authority of the Crown

16.  (1)  The Lieutenant Governor in Council may raise by way of loan in the manner provided by the Financial Administration Act such sums as the Lieutenant Governor in Council considers necessary for the purposes of the Corporation, and the Minister of Finance shall use the sums so raised to make advances to the Corporation by way of loan or to purchase securities issued by the Corporation in such amounts, at such times and on such terms and conditions as the Minister of Finance may determine.

Same

(2)  The Lieutenant Governor in Council may by order authorize the Minister of Finance to purchase securities of or make loans to the Corporation in such amounts, at such times and on such terms as the Minister of Finance may determine, subject to the maximum principal amount specified by the Lieutenant Governor in Council that may be purchased or advanced or that may be outstanding at any time.

Payment from C.R.F.

(3)  The Minister of Finance may pay out of the Consolidated Revenue Fund any amount required for the purposes of subsection (1) or (2).

Delegation

(4)  In an order made for the purposes of subsection (1) or (2), the Lieutenant Governor in Council may delegate to an officer or employee of the Crown or an agency of the Crown or to a solicitor engaged to act for the Minister of Finance any or all of the powers of the Minister of Finance under that subsection.

Payment of judgments against the Corporation, etc.

17.  The Minister of Finance shall pay from the Consolidated Revenue Fund the amount of any judgment against the Corporation that remains unpaid after the Corporation has made reasonable efforts, including liquidating its assets, to pay the amount of the judgment.

General

Application of certain statutes

Business Corporations Act , conflict of interest

18.  (1)  Subsections 132 (1) to (8) of the Business Corporations Act apply, with necessary modifications, to the Corporation, its officers and the members of its board of directors.

Same

(2)  For the purposes of subsection (1), the Minister may exercise the powers of the shareholders under subsection 132 (8) of the Business Corporations Act.

Business Corporations Act, indemnification and insurance

(3)  Subsections 136 (1), (2), (3) and (4) of the Business Corporations Act apply, with necessary modifications, to the Corporation, its officers and the members of its board of directors.

Corporations Act, Corporations Information Act

(4)  The Corporations Act and the Corporations Information Act do not apply to the Corporation, except as otherwise specified by regulation.

Loan and Trust Corporations Act

(5)  The Loan and Trust Corporations Act does not apply to the Corporation, except as otherwise specified by regulation.

Immunity of employees and others

19.  (1)  No action or other civil proceeding shall be commenced against a director, officer, employee or agent of the Corporation for any act done in good faith in the exercise or performance or intended exercise or performance of a power or duty under this Act, the regulations or the by-laws of the Corporation or under a directive issued under subsection 8 (1) or for any neglect or default in the exercise or performance in good faith of such a power or duty.

Exception

(2)  Subsection (1) does not relieve the Corporation of any liability to which it would otherwise be subject in respect of a tort committed by a director, officer or employee.

Evidence of authority for transactions

20.  (1)  A recital or declaration in any resolution of the board of directors that a transaction is for the purpose of carrying out the objects of the Corporation is conclusive evidence to that effect.

Evidence of authority

(2)  A certificate of the chair, a vice-chair, the chief executive officer or any officer of the Corporation designated by the board of directors for the purpose which states that the sum of the amount specified in the certificate and the sum of all other principal amounts borrowed under a specified by-law described in section 13 does not exceed the maximum principal amount that may be borrowed under that by-law is conclusive evidence of that fact.

Regulations

21.  (1)  The Lieutenant Governor in Council may make regulations,

(a) prescribing the criteria that must be satisfied for a business or entity to be an eligible business or eligible entity referred to in paragraph 2 of section 3 that may receive debt financing from the Corporation;

(b) prescribing, for the purposes of paragraph 2 of section 3, the purposes for which debt financing provided by the Corporation may be used by an eligible business or eligible entity;

(c) prescribing additional provisions of the Business Corporations Act and provisions of the Corporations Act, Corporations Information Act and Loan and Trust Corporations Act that apply with respect to the Corporation;

(d) governing such other matters as the Lieutenant Governor in Council considers necessary or advisable for the purposes of this Act.

General or particular

(2)  A regulation may be general or particular in its application.

Commencement

22.  (1)  Subject to subsection (2), the Act set out in this Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

Same

(2)  Sections 1 to 21 come into force on a day to be named by proclamation of the Lieutenant Governor.

Short title

23.  The short title of the Act set out in this Schedule is the Northern Ontario Grow Bonds Corporation Act, 2004.

EXPLANATORY NOTE

This Explanatory Note was written as a reader's aid to Bill 149 and does not form part of the law. Bill 149 has been enacted as Chapter 31 of the Statutes of Ontario, 2004.

The Bill implements measures contained in the 2004 Budget and amends various Acts. The major elements of the Bill are described below.

SCHEDULE 1
AMENDMENTS TO THE
ADMINISTRATION OF JUSTICE ACT

Schedule 1 amends the Administration of Justice Act to provide a mechanism for fee waivers, so that individuals who might otherwise be denied access to justice because of their financial circumstances can be excused from paying fees.

The Act is also amended to expand and clarify regulation-making powers.

SCHEDULE 2
AMENDMENT TO THE AGRICULTURAL AND HORTICULTURAL ORGANIZATIONS ACT

The enactment of subsection 25 (4) of the Agricultural and Horticultural Organizations Act provides that the local organizing committee for the annual International Plowing Match shall be deemed to be an agricultural society for the purposes of the application of subsection 9 (2) of the Retail Sales Tax Act to the International Plowing Match. This amendment is effective from January 1, 2004.

SCHEDULE 3
AMENDMENTS TO THE ASSESSMENT ACT

The Assessment Act currently provides an exemption from taxation for large non-profit theatres. The re-enactment of paragraph 27 of subsection 3 (1) of the Act provides that the exemption also applies during the period when such a theatre is being built, retroactive to the beginning of 2003.

Section 3.1 of the Act is repealed. The section currently provides a 10-year exemption from municipal and school taxes for eligible new electricity generating facilities and additions to electricity generating facilities that commence generating electricity from an alternative or renewable source of energy after November 25, 2002 and before January 1, 2008.

Currently, subsection 14 (1) of the Act specifies the information that must be included on the assessment roll for each municipality. An amendment to that subsection provides that the assessment roll must include such additional information as may be prescribed by the Minister of Finance by regulation.

The enactment of subsection 19 (2.1.1) of the Act allows the Minister of Finance to prescribe by regulation the assessed value or the manner of determining the assessed value of an electricity generating station that is not an electricity generating station on land owned by a designated electricity utility or municipal electricity utility.

Subsection 19.0.1 (1) of the Act governs the determination of the assessed value of electricity generating station buildings and structures and transformer station buildings and structures and certain other buildings and structures on land owned by a designated electricity utility or municipal electricity utility. The enactment of clause 19.0.1 (1) (c) of the Act provides that the Minister of Finance may, by regulation, specify the assessed value or the manner of determining the assessed value of particular buildings and structures on the land. The repeal of clause 19.0.1 (4) (c) of the Act will permit a former generating station building that is used for any purpose other than generating electricity to be valued at its current value instead of in the manner specified in section 19.0.1 of the Act.

Section 19.3 of the Act provides the day as of which land shall be classified for a taxation year. The amendment changes that day from October 31 of the previous year to June 30 of the previous year.

Currently, subsection 25 (2) of the Act provides that on or before October 1 of every year a pipe line company shall provide the assessment corporation with information on pipelines owned by it on September 1 of that year. The re-enactment of this subsection changes the first date to March 1 or such other day as the Minister of Finance may prescribe and the second date to January 1.

Currently, subsection 30 (1) of the Act provides that on or before July 1 of every year a railway company shall provide the assessment corporation with information on land owned by it. The amendment changes the reporting date to March 1 or such other date as the Minister of Finance may prescribe.

Currently, subsection 32 (2) of the Act provides that a notice of assessment shall be issued by the assessor when a change in the regulation defining the property classes results in a change in a property's classification for the current year or the preceding three years and an overpayment of tax. The subsection is amended so that only changes for the current or preceding year require a new assessment notice. The enactment of subsection 32 (3) of the Act requires the assessor to issue a notice of assessment and the municipality to refund overpaid taxes if the property becomes exempt from taxation as a result of an amendment to the Act or regulations for the current year or for the preceding year. The enactment of subsection 32 (4) of the Act requires the assessor to issue a notice of assessment and the municipality to refund or levy the appropriate amount of taxes if the methodology for assessing a property is changed as a result of an amendment to the Act or the regulations for the current year or for the preceding year.

Currently, subsection 34 (2) of the Act provides that a supplementary assessment of a property shall be made when a "change event", within the meaning of subsection 34 (2.2) of the Act, occurs during a year or the preceding November or December, after the classification date for the year, and the "change event" would result in the property's classification changing. The subsection is amended to reflect the new classification date of June 30 so that change events occurring after the preceding July 1 may give rise to a supplementary assessment.

SCHEDULE 4
AMENDMENT TO THE
BUSINESS CORPORATIONS ACT

Subsection 241 (1) of the Business Corporations Act authorizes the Director to dissolve a corporation that is in default of its obligations under the Corporations Tax Act in the circumstances described in that subsection. An amendment provides that a corporation can also be dissolved if it is in default of its obligations under other specified tax statutes.

SCHEDULE 5
AMENDMENT TO THE
CAPITAL INVESTMENT PLAN ACT, 1993

The re-enactment of subsection 64 (1) of the Capital Investment Plan Act, 1993 expands the authority of the Minister of Finance to delegate his or her powers and duties under any Act. Currently, the Minister may delegate powers and duties to the Deputy Minister of Finance and to other persons employed in the Ministry of Finance. The amendment permits the Minister to make delegations to any public servant who is employed in or provides services to the Ministry of Finance.

SCHEDULE 6
AMENDMENTS TO THE
COMMODITY FUTURES ACT

Currently, section 59.2 of the Commodity Futures Act prohibits the making of misleading or untrue statements that significantly affect or would reasonably be expected to have a significant effect on the market price or value of a commodity or contract. The section is amended so that it only prohibits the making of misleading or untrue statements that would reasonably be expected to have a significant effect on the market price or value of a commodity or contract.

Subsection 60 (2.1) of the Act provides that, in specified circumstances, a person is not entitled to participate in a proceeding in which an order may be made under paragraph 10 of subsection 60 (1) against another person to disgorge amounts obtained as a result of non-compliance. An amendment provides that, in the specified circumstances, a person is also not entitled to participate in a proceeding in which an order may be made under paragraph 9 of subsection 60 (1) against another person to pay an administrative penalty.

Section 76 of the Act requires the Minister to appoint an advisory committee every five years to review the legislation, regulations and rules relating to commodity futures and make a report to the Minister to be tabled in the Legislature and reviewed by a Select or Standing Committee of the Legislative Assembly. The amendments to the section set a May 31, 2005 deadline for appointing the first advisory committee under that section and provide for a review every four years after the appointment of the previous advisory committee.

SCHEDULE 7
AMENDMENTS TO THE COMMUNITY SMALL BUSINESS INVESTMENT FUNDS ACT

The re-enactment of the definition of "eligible business activity" in subsection 1 (1) of the Community Small Business Investment Funds Act limits the application of the definition to Parts I and II of the Act.

Amendments are made to subsections 6 (4) and (6) and subclause 26 (1) (c) (ii) of the Act to reflect the new name of the Minister of Economic Development and Trade.

The amendments to section 12 of the Act clarify the rules regarding direct and indirect investments in eligible investments by labour sponsored investment funds.

The amendments to section 15 of the Act authorize the Minister to impose a moratorium on the registration of new labour sponsored investment funds, effective May 18, 2004.

The amendments to section 16.1 of the Act enable research-oriented investment funds to determine their annual investment requirements as of either August 31 or December 31.

The amendment to the investment requirements in subsection 17 (1) of the Act changes the treatment of realized gains and losses in determining if a labour sponsored investment fund has satisfied the required investment levels.

The definition of "eligible investment" in subsection 18 (1) of the Act is amended to facilitate the application of the material change provisions in section 21 of the Act.

Further amendments to subsection 18 (1) of the Act and the repeal of subsections 18 (5), (6), (7) and (9) of the Act remove the restriction on labour sponsored investment funds controlling eligible businesses in which they have invested.

The enactment of subsections 18 (12), (13) and (14) of the Act authorize the Minister to impose penalties and, in some cases, revoke registration under the Act where there are contraventions of the spirit and intent of the Act.

The re-enactment of subsection 18.1 (5) of the Act increases the limit on investments by a labour sponsored investment fund in public companies listed on a recognized stock exchange to 25 per cent of the total cost of its eligible investments as of the current or the prior year, whichever total cost is greater.

The enactment of Part III.2 of the Act implements the Ontario Commercialization Investment Fund Program which provides a grant to corporations and partnerships registered as Ontario commercialization investment funds in respect of eligible investments in eligible businesses. The grant is calculated at a rate of 30 per cent of the amount of eligible investments. Consequential amendments are made to sections 1, 19, 24, 26, 27, 27.1 and 31 of the Act. New section 28.2 of the Act sets out rules that apply if a fund disposes of an eligible investment.

The amendments to section 20 of the Act remove the 10 per cent net equity restriction applicable to labour sponsored investment funds, but retain the $15 million cap.

The amendments to section 25 of the Act set out the circumstances in which labour sponsored investment funds issue tax credit certificates on behalf of the Minister as the Minister's agent.

The penalty in subsection 25.1 (5) of the Act for non-compliance with investment requirements is amended to provide the Minister with the discretion to assess a penalty based on only the equity capital of a labour sponsored investment fund that was raised in Ontario.

Subsection 27 (2.2) of the Act is enacted to ensure that a labour sponsored investment fund is not required to repay an amount under the Act if it is surrendering its registration only by reason of having sold its assets to another labour sponsored investment fund. New section 27.1 of the Act sets out the rules and requirements applicable to business combinations by way of asset transactions among labour sponsored investment funds.

The list of situations requiring the Minister to serve a notice of proposal before taking action under the Act is expanded in subsection 31 (1) of the Act to reflect the new penalties and the provisions of Part III.2. Amendments to the provisions for objecting to a notice of proposal given by the Minister are set out in subsections 31 (4) and (4.1) of the Act.

SCHEDULE 8
AMENDMENTS TO THE
CO-OPERATIVE CORPORATIONS ACT

The Schedule amends the Co-operative Corporations Act with respect to several matters.

The new section 27.1 of the Act permits a co-operative to issue preference shares in series, if the articles of the co-operative authorize it to do so. Conditions and restrictions with respect to this power may be prescribed by regulation. Complementary amendments are made to other provisions of the Act.

Section 31 of the Act is amended in connection with the redemption of preference shares within a class or series, when not all of the shares in the class or series are being redeemed. Currently, the Act specifies the ways in which the shares in a class to be redeemed may be chosen. The amendments provide that additional methods to determine which shares in a class to redeem may be specified by regulation and the method for determining which shares in a series to redeem shall be specified by regulation.

Section 34 of the Act is amended in connection with offering statements. Currently, the Act requires a co-operative to file an offering statement with the Superintendent with respect to the sale of its securities if the co-operative has more than 25 security holders, or would have more than 25 security holders after the proposed sale. The amendment deletes the references to "25" and specifies, instead, that the number of security holders is to be prescribed by regulation.

The re-enactment of section 110 of the Act brings the provisions relating to the indemnification of directors and officers more closely into line with the comparable provisions in the Business Corporations Act.

Currently, section 140 of the Act requires a co-operative to send to its members a copy of its financial statements and the auditor's report. An amendment relieves the co-operative of this obligation if the member has given the co-operative written notice that the member does not wish to receive them.

Section 172 of the Act is amended to permit co-operatives to send notices and documents to members and directors electronically in accordance with the Electronic Commerce Act, 2000 and with such other conditions as may be prescribed. The same permission is given to members and directors for the notices and documents that they send to a co-operative. Complementary amendments are made to other provisions of the Act.

SCHEDULE 9
AMENDMENTS TO THE
CORPORATIONS TAX ACT

New section 11.0.1 of the Corporations Tax Act maintains the non-deductibility of Crown royalties and mining taxes for taxation years ending after December 31, 2002. Related amendments to section 26 of the Act apply to taxation years beginning after December 31, 2006, to coincide with the completion of the federal phase-out of the resource allowance and the phase-in of the deduction for Crown royalties and mining taxes. Consequential amendments are made to subsection 1 (12), clause 14 (5) (e), subsection 18 (15), sections 19, 22 and 31 and subsection 62 (4) of the Act.

Amendments are made to phase out the workplace child care tax incentive in section 13.2 of the Act and the workplace accessibility tax incentive in section 13.3 of the Act. The amendments restrict these incentives to qualifying expenditures made or incurred by a corporation before January 1, 2005.

Amendments to section 13.5 of the Act phase out the educational technology tax incentive. Subsection 13.5 (2) of the Act is amended to allow a corporation to claim the tax incentive only on eligible equipment that is donated or sold or eligible learning technology that is donated, sold or licensed to an eligible educational institution before January 1, 2005. New subsection 13.5 (3.1) of the Act provides a transitional rule for licences that straddle December 31, 2004.

The tax incentive for new electricity supply in section 13.6 of the Act is repealed retroactively. No deduction may be claimed under this section in respect of any income earned from the sale of electricity after November 25, 2002. A consequential amendment repeals clause 112 (1) (d.2) of the Act.

Section 43.6 of the Act is amended to phase out the graduate transitions tax credit. Amendments to subsection 43.6 (11) of the Act restrict eligible expenditures to amounts paid or payable by a corporation to an employee before January 1, 2005. To conform to the current requirement that the qualifying employment must continue for at least six consecutive months, subsection 43.6 (10) of the Act is amended to require that the qualifying employment must commence before July 6, 2004.

Amendments are made to the Ontario book publishing tax credit in section 43.7 of the Act. New subsections 43.7 (15.1) and (15.2) of the Act allow tax credit entitlements to be transferred to a successor corporation where an eligible corporate reorganization occurs after December 31, 2001. Subsection 43.7 (16) of the Act is amended retroactive to May 7, 1997 to clarify that the tax credit will not be reduced by a grant that is not specific to a particular eligible literary work. Clause 43.7 (13) (i) of the Act is amended to give corporations with a short preceding taxation year a full 12-month period to meet the requirement to publish at least two books in the preceding year.

Amendments are made to section 43.9 of the Act respecting the Ontario business-research institute tax credit. Currently, a corporation that has entered into a research contract with an eligible research institute is ineligible for the tax credit if the corporation is connected to the research institute at any time during the contract or during the 24 months before the contract was entered into. Amendments to subsections 43.9 (3) to (5) of the Act allow a corporation to claim the tax credit for the period during a taxation year when the corporation is not connected to an eligible research institute. A complementary amendment to subsection 43.9 (26) of the Act provides that wages paid under a research contract to a connected employee are not permanently disqualified from the tax credit. These amendments are made retroactive to May 7, 1997. New subsections 43.9 (25.1), (25.2) and (25.3) of the Act provide that interest is not payable on a corporation's tax savings from the amendments to section 43.9 of the Act for the period before March 28, 2003.

New section 43.13 of the Act establishes an apprenticeship training tax credit. This is a refundable tax credit calculated in respect of the amount of wages and salaries paid or payable after May 18, 2004 and before January 1, 2011 by a corporation to an apprentice in the first 36 months of an apprenticeship program. The tax credit rate is 30 per cent for businesses with payrolls of $400,000 or less and 25 per cent for businesses with payrolls of $600,000 or more. The apprenticeship must be in a qualifying skilled trade, and the apprentice's employment with the corporation must commence before January 1, 2008. The maximum tax credit available for each apprentice is $15,000 over a 36-month employment period. Consequential amendments are made to sections 44.1, 76, 78 and 80 of the Act. Related amendments to the co-operative education tax credit in section 43.4 of the Act allow the Minister to prescribe transitional rules for work placements straddling May 18, 2004.

New subsection 61 (2.1) of the Act defines "current trade accounts payable", effective for taxation years ending after May 18, 2004. This new term applies to amounts payable to a supplier for the purchase of goods or services. Section 61 of the Act is also amended, retroactive to taxation years ending after May 19, 1993, to clarify that liabilities incurred in connection with the purchase or trade of shares or debt obligations are excluded from the current definition of "current accounts payable". Consequential amendments are made to section 61, subsection 62 (5) and clause 63 (1) (b) of the Act.

Currently, a corporation may deduct from its paid-up capital the undepreciated capital cost of qualifying property used to generate electricity. The re-enactment of clause 62 (1) (i) of the Act extends this deduction to qualifying property that is used to deliver electricity, steam or heated or cooled water, retroactive to December 9, 2002.

Amendments to sections 62.1, 66, 66.1 and 69 of the Act phase out capital tax. The current $5 million deduction from taxable capital is increased to $7.5 million on January 1, 2005, $10 million on January 1, 2006, $12.5 million on January 1, 2007 and $15 million on January 1, 2008. Starting in 2009, each of the capital tax rates is reduced each year until capital tax is fully eliminated for taxation years commencing in 2012.

Technical amendments are made to the Act. New subsection 11 (12.1) of the Act relates to the deductibility of foreign non-business income tax paid by a corporation. Section 37.1 of the Act, which provides a tax incentive in respect of interest on Ontario Jobs and Opportunity Bonds, is amended to reflect the new name of the Ontario Strategic Infrastructure Financing Authority. Subsection 49 (3) of the Act is amended to provide that the election in section 134.2 of the Income Tax Act (Canada) relating to the revocation of a corporation's status as a non-resident-owned investment corporation also applies for Ontario purposes. Amendments to subsections 43.1 (4) and 57.5 (10) of the Act and new subsections 55.1 (2) to (6) and 57.5 (11) and (12) of the Act provide an election so that a Canadian subsidiary of a foreign bank can transfer its unused Ontario losses and unused corporate minimum tax credits to a Canadian branch of the foreign bank. Amendments to clause 62 (1) (c) of the Act relate to the determination of the investment allowance for capital tax purposes. New subsection 78 (3.1) of the Act relates to the date on which the balance of tax for the year is due where an amalgamation of Canadian-controlled private corporations occurs. Subsection 80 (30) of the Act is amended to parallel the provisions in subsection 160 (1) of the Income Tax Act (Canada) relating to transfers of property between persons who do not deal at arm's length. Amendments are made to subsections 41 (3.1), (3.2), (4) and 51 (4) and to clauses 43 (4) (a), 84 (7) (d) and 112 (1) (g) of the Act to clarify wording and to update or correct cross-references.

Subsection 4 (1) of Schedule H to the Government Efficiency Act, 2002 will repeal definitions of classes of insurance that appear in section 1 of the Insurance Act. Subsection 43 (1) of the Insurance Act allows the Superintendent of Financial Services to issue orders defining classes of insurance for the purposes of that Act. The amendments to sections 73.1, 74 and 74.3 of the Act are complementary to the amendments enacted by Schedule H to the Government Efficiency Act, 2002.

SCHEDULE 10
AMENDMENTS TO THE EDUCATION ACT

Clause 257.12 (1) (b) of the Education Act permits the Minister of Finance to make regulations prescribing property tax rates for school purposes and rates for the purpose of calculating payments in lieu of taxes for property which is exempt from taxation for school purposes. The enactment of subsection 257.12 (1.1.1) of the Act clarifies that these regulations are effective for the whole year to which they apply, unless the contrary intention appears.

Clause 257.14 (1) (i) of the Act currently authorizes the Minister of Education to make a regulation allowing the levying and collection in a future year of tax rates for school purposes for 1998 to 2001 in respect of property in territory without municipal organization. The amendments to section 257.14 of the Act permit the Minister to make a regulation allowing the levying and collection of rates for 2002 and later years after the end of the particular year.

SCHEDULE 11
AMENDMENTS TO THE
ELECTRICITY ACT, 1998

Section 88 of the Electricity Act, 1998 is amended to include within the definition of "municipal electricity utility" a corporation established after May 1, 2003 under the authority of the Municipal Act, 2001 for the purposes of acquiring, holding, disposing of and otherwise dealing with shares of a corporation incorporated under section 142 of the Electricity Act, 1998. A corresponding amendment is made to section 142 of the Act to provide that municipal corporations had the authority after November 6, 1998 and before May 2, 2003 to establish corporations for the purposes of acquiring, holding, disposing of and otherwise dealing with shares of a corporation incorporated under that section.

Currently, subsection 92 (1) of the Act requires specified entities to make payments in lieu of additional municipal and school taxes in respect of all generating stations other than hydro-electric generating stations. New subsection 92 (9) of the Act exempts wind turbine towers from this requirement for 2005 and subsequent years.

Currently, subsection 92.1 (2) of the Act requires owners of specific hydro-electric generating stations to pay the property tax portion of the gross revenue charge to the Financial Corporation rather than to Her Majesty in right of Ontario. This subsection is revised to extend this treatment to stations acquired or developed by Ontario Power Generation Inc., Hydro One Inc. or a municipal electricity utility after March 31, 1999.

Technical amendments are made to sections 92 and 92.1 of the Act.

Subsection 94 (1) of the Act requires municipal corporations and municipal electricity utilities to pay a transfer tax to the Financial Corporation when transferring municipal electricity property. The transfer tax payable by a municipal electricity utility can be reduced by the amounts specified in subsection 94 (3) of the Act. The enactment of paragraph 4 of subsection 94 (3) of the Act, retroactive to November 7, 1998, permits a reduction in the tax payable equal to the amount of federal income tax that would be payable by a municipal electricity utility on a gain arising on a disposition of eligible capital property.

New subsection 94 (7) of the Act authorizes the amount payable to the Financial Corporation to be refunded in accordance with the regulations if the proceeds of the transfer are reinvested in the prescribed manner. New subsection 94 (7.1) of the Act requires that refund to be repaid in prescribed circumstances.

Currently, subsection 94 (9) of the Act specifies that a transfer that does not comply with subsection 94 (1) is void. The new subsection 94 (9.1) of the Act creates an exception.

The re-enactment of section 95 of the Act provides that provisions in Parts V and VI of the Corporations Tax Act relating to returns, payments, assessments, refunds, objections to assessments, appeals from assessments, administration and enforcement apply with necessary modifications and such changes as may be prescribed by the regulations to amounts payable under Part VI of the Act.

SCHEDULE 12
AMENDMENTS TO THE
EMPLOYER HEALTH TAX ACT

Amendments are made to section 1 of the Employer Health Tax Act to clarify that the total Ontario remuneration paid to or on behalf of employees of an employer includes amounts paid to certain trusts, plans or arrangements for the benefit of employees, plus amounts received or enjoyed, or deemed to be received or enjoyed, by employees for the purposes of section 5, 6 or 7 of the Income Tax Act (Canada).

Amendments are also made to section 1 of the Act to confirm that where an employee reports for work at a permanent establishment of an employer at any time during a year, all remuneration paid to the employee by the employer is generally included in the total Ontario remuneration of the employer for the year, subject to certain exceptions.

Section 2 of the Act is amended to clarify that all employment benefits relating to stock options that are taxable under section 7 of the Income Tax Act (Canada) are subject to employer health tax.

Amendments are made to section 2.2 of the Act, with respect to stock options granted after May 17, 2004, to eliminate an incentive that is given to research-intensive employers to allow them to exclude stock option benefits from remuneration. The incentive can continue to be claimed for a year up to and including 2009 for stock options granted before May 18, 2004.

Sections 5 and 30 of the Act are amended to modify the penalty imposed on employers for filing an annual EHT return late. Effective for years ending after May 18, 2004, the penalty increases from 5 per cent of tax payable to a maximum of 17 per cent of tax payable, depending on the number of months that the return is overdue. The maximum penalty increases to 50 per cent of tax payable for repeat late-filers.

SCHEDULE 13
AMENDMENTS TO THE
FINANCIAL ADMINISTRATION ACT

Technical amendments are made to the Financial Administration Act in connection with the recent implementation of a system of accrual-based appropriations.

The re-enactment of section 1.1 of the Act changes the type of payments held in the Ontario Opportunities Fund.

Section 11.6 of the Act is amended to permit an appropriation for a fiscal year to be charged with a payment coming due after the books of the Government of Ontario for that fiscal year are closed, if the Crown incurred a liability to make the payment during the fiscal year and the amount available under the appropriation immediately before the books were closed is greater than or equal to the amount of the liability. The section is also amended to require that any liability to make a payment incurred by the Crown during a fiscal year in excess of available appropriations must be reported in the Public Accounts for that fiscal year.

New sections 11.8 and 11.9 of the Act provide for the treatment of expenses and liabilities of the Crown arising during the 2003-2004 fiscal year for which the appropriations under the Supply Act, 2003 were insufficient.

Subsection 16.5 (2) of the Act currently permits ministries to invest money held outside the Consolidated Revenue Fund in certain types of investments, including investment pools operated by the Ontario Financing Authority for the purpose of investing in Province of Ontario debt securities. The amendments to section 16.5 of the Act repeal the authority to invest in this type of investment pool because the Ontario Financing Authority does not currently operate and does not intend to operate this type of restricted investment pool.

SCHEDULE 14
AMENDMENT TO THE FINANCIAL SERVICES COMMISSION OF ONTARIO ACT, 1997

Subsection 11 (1) of the Financial Services Commission of Ontario Act, 1997 currently requires the Financial Services Commission of Ontario to deliver its statement of priorities for a fiscal year to the Minister of Finance and publish it no later than nine months before the start of the fiscal year. The amendment to the subsection changes the deadline to 90 days after the start of the fiscal year.

SCHEDULE 15
AMENDMENTS TO THE FUEL TAX ACT

The enactment of section 5.1 of the Fuel Tax Act permits a person authorized by the Minister of Finance to stop and detain a commercial motor vehicle that uses fuel subject to tax under the Act in order to take samples to determine if the vehicle is using coloured fuel or unauthorized fuel.

The authorized person may also stop and detain a motor vehicle that he or she reasonably believes to be an interjurisdictional vehicle in order to determine whether the vehicle operator is an interjurisdictional carrier and has complied with section 4.13 of the Act. The authorized person may inspect the vehicle's fuel tax decal, if any, and the driver's documents to determine compliance with the Act.

A driver who fails to comply with a request under section 5.1 of the Act or who fails to have a required fuel tax decal is subject to prosecution and on conviction is liable to a fine of not less than $200 and not more than $1,000.

Amendments to section 13 of the Act permit a taxpayer to waive the four-year limit for issuing an assessment by filing a waiver with the Minister. Once filed, the waiver may be revoked by the taxpayer, but it continues to have effect for one year.

The enactment of section 22.1 of the Act authorizes the public disclosure by the Minister of the names and addresses of persons registered or designated under the Act, for the purposes of administering the Act.

Currently, section 23 of the Act allows the Lieutenant Governor in Council to enter into agreements with other provinces and territories for the purposes of administering the Act. The section is amended to allow the Minister of Finance to enter into such agreements instead, and to allow the agreements to be made with any jurisdiction. Agreements may authorize payment for services performed under the agreements.

Currently, various provisions of the Act require registrants under the Act to carry and produce notarial copies of certain documents. These provisions are amended to make "true copies", such as photocopies, acceptable.

SCHEDULE 16
AMENDMENTS TO THE GASOLINE TAX ACT

The enactment of section 10.3 of the Gasoline Tax Act permits a person authorized by the Minister of Finance to stop and detain a motor vehicle that the person reasonably believes to be a qualified motor vehicle in order to determine whether the vehicle operator is an interjurisdictional carrier and has complied with section 4.12 of the Act. The authorized person may inspect the driver's documents to determine compliance with the Act. A driver who fails to comply with a request under section 10.3 of the Act is subject to prosecution and on conviction is liable to a fine of not less than $200 and not more than $1,000.

Amendments to section 11 of the Act permit a taxpayer to waive the four-year time limit for issuing an assessment by filing a waiver with the Minister. Once filed, the waiver may be revoked by the taxpayer, but it continues to have effect for one year.

The amendments to section 28.1 and subsection 33 (2) of the Act accommodate the use of electronic or other systems to make gasoline tax refunds to retailers on Indian reserves. The refund provisions are also extended to include refunds to retailers operating in an Indian settlement located on Crown land.

The enactment of section 31.1 of the Act authorizes the public disclosure by the Minister of the names and addresses of persons registered or designated under the Act, for the purposes of administering the Act.

Currently, section 32 of the Act allows the Lieutenant Governor in Council to enter into agreements with other provinces or territories for the purposes of administering the Act. The section is amended to allow the Minister of Finance to enter into such agreements instead, and to allow the agreements to be made with any jurisdiction. The agreements may authorize payments for services performed under the agreements.

Currently, various provisions of the Act require registrants under the Act to carry and produce notarial copies of certain documents. These provisions are amended to make "true copies", such as photocopies, acceptable.

SCHEDULE 17
AMENDMENT TO THE GO TRANSIT ACT, 2001

Subsection 35 (1.1) of the GO Transit Act, 2001 continued in force, until the end of 2004, municipal development charge by-laws in respect of GO Transit's capital costs that would have expired on December 31, 2003. Subsection 35 (1.1) of the Act is amended to continue those by-laws in force until the end of 2005 unless they are repealed earlier.

SCHEDULE 18
AMENDMENTS TO THE HIGHWAY TRAFFIC ACT

Sections 7.1 to 7.17 of the Highway Traffic Act govern Ontario's participation in the International Registration Plan, a reciprocal agreement concerning commercial motor vehicles that are engaged in interprovincial or international travel. An amendment to subsection 7.2 (1) of the Act requires permit holders under the Plan to retain prescribed records for five years. Currently, they are required to retain those records for three years. Amendments to section 7.7 of the Act make technical changes relating to the calculation of interest on unpaid amounts owed under the Plan.

SCHEDULE 19
AMENDMENTS TO THE INCOME TAX ACT

The enactment of subsection 4.0.1 (23.1) of the Income Tax Act accords with proposed amendments to the Income Tax Act (Canada), for taxation years after 2003, that modify the calculation of the medical expense credit. Consequential amendments are made to section 4.0.2 of the Act to provide for indexing of dollar amounts referred to in the new subsection.

The re-enactment of section 4.0.2 of the Act modifies the indexing formula for adjusting various amounts on an annual basis and makes the formula applicable in respect of the Ontario basic reduction under section 7 of the Act. The modifications ensure there is appropriate rounding of a number at each step in the indexing formula. Corresponding technical amendments are made to section 7 of the Act.

The re-enactment of section 4.1 of the Act provides that the tax rate applicable to a qualifying environmental trust for a taxation year is the specified basic rate that would apply to a corporation for the year under section 38 of the Corporations Tax Act.

Amendments to section 7 of the Act ensure that an individual claims the foreign tax credit before determining the amount of his or her Ontario basic reduction.

Subsection 8 (3.1) of the Act is amended to enrich the Ontario property tax credit for seniors by increasing the basic property tax credit amount from $500 to $625 and to increase the maximum benefit available for the property and sales tax credits for seniors from $1,000 to $1,125.

Amendments to section 8 of the Act provide for the elimination of the graduate transitions tax credit, workplace child care tax credit, workplace accessibility tax credit and education technology tax credit for the 2005 and subsequent taxation years. Corresponding amendments are made to sections 8.1, 8.3, 8.4 and 8.4.1 of the Act.

Section 8 of the Act is amended and a new section 8.4.5 is enacted to provide an apprenticeship training tax credit to eligible employers in respect of salary and wages paid to apprentices in the first 36 months they are employed in qualifying apprenticeships. The tax credit is 25 per cent (30 per cent for businesses with payrolls of $400,000 or less) of the salaries and wages paid after May 18, 2004 and before January 1, 2011 by an eligible employer in respect of a qualifying apprenticeship in which the employment with the eligible employer commences before January 1, 2008. The maximum tax credit available for each apprentice is $15,000 over a 36-month period.

Section 8.7 of the Act is amended to repeal the Ontario research employee stock option tax credit with respect to stock options granted after May 17, 2004. The tax credit can continue to be claimed for a year up to and including 2009 if the underlying employee stock option was granted before May 18, 2004.

Section 8.9 of the Act currently provides a tax incentive to individuals in respect of interest on Ontario Jobs and Opportunity Bonds. The section is amended to reflect the new name of the Ontario Strategic Infrastructure Financing Authority. Consequential amendments are made to sections 8.6, 8.7, 10, 22.1, 43 and 49 of the Act to provide for the effective administration of this tax incentive.

The enactment of subsection 49 (6) of the Act provides for a statutory appropriation with respect to fees and other amounts that may be payable to the Government of Canada under a tax collection agreement.

SCHEDULE 20
AMENDMENTS TO THE INSURANCE ACT

Section 121.1 of the Insurance Act permits the Minister to establish fees in relation to any matter under the Act. The definition of "due application" in section 1 and subsections 28 (2), 393 (3) and (6), 397 (1) and (4), 399 (2) and 400 (7) of the Act currently refer to prescribed fees. The amendments to those provisions change those references to fees established by the Minister. An amendment is made to subsection 23 (2) of the Act for consistency in wording.

Section 121.2 of the Act permits the Superintendent of Financial Services to approve forms. The amendment to section 105 of the Act changes the reference to a prescribed form to a reference to a form approved by the Superintendent. The re-enactment of subsection 393 (11) of the Act changes the references to prescribed fees and prescribed forms to fees established by the Minister and forms approved by the Superintendent.

The amendment to subsection 102 (1) of the Act removes a reference to a repealed section of the Act.

Subsection 4 (1) of Schedule H to the Government Efficiency Act, 2002 repeals definitions of classes of insurance that appear in section 1 of the Act. Subsection 43 (1) of the Act allows the Superintendent of Financial Services to issue orders defining classes of insurance for the purposes of the Act. The amendment to subsection 121 (1) of the Act and the revocation of Regulation 666 of the Revised Regulations of Ontario, 1990 are complementary to the amendments enacted by Schedule H to the Government Efficiency Act, 2002.

The re-enactment of the definition of "nuclear energy hazard" in subsection 255 (1) of the Act updates the definition to refer to current federal legislation and terminology.

Section 417.0.1 of the Act currently prevents insurers from considering accidents that occur when an emergency vehicle is responding to an emergency for purposes of contracts of automobile insurance, other than for contracts covering the emergency vehicle. The amendments to section 417.0.1 of the Act add ambulances to the list of emergency vehicles.

SCHEDULE 21
AMENDMENTS TO THE
LAND TRANSFER TAX ACT

Amendments to the Land Transfer Tax Act relate to the collection of taxes payable upon the electronic registration of a conveyance under the Land Registration Reform Act.

New section 5.1 of the Act authorizes the Minister of Finance to designate persons to collect the tax payable when conveyances are registered electronically. New section 5.2 specifies the rights and duties of designated collectors and land registrars. Consequential amendments are made throughout the Act, including the enactment of provisions governing record-keeping requirements, investigations, offences and penalties relating to designated collectors.

New subsection 9.2 (6) of the Act provides that information contained in an application by a first-time homebuyer for a refund of tax on a newly-constructed home is available to the public.

Amendments to section 12 of the Act permit a taxpayer to waive the four-year time limit for issuing an assessment by filing a waiver with the Minister. Once filed, the waiver may be revoked by the taxpayer, but it continues to have effect for one year.

New section 21.1 of the Act authorizes the Minister to enter into agreements to permit third parties to use the information provided in the statements and affidavits required by section 5 of the Act for conveyances.

Under new section 21.2 of the Act, the enactment of section 5.1 and the exercise of any power or the performance of any duty under section 5.1, 5.2, 5.3 or 21.1 do not entitle any person to compensation from the Crown under any agreement.

SCHEDULE 22
AMENDMENT TO THE LIMITATIONS ACT, 2002

The Schedule to the Limitations Act, 2002 is amended in relation to the limitation periods set out in the Securities Act. Currently, the Schedule lists the special limitation periods in specified provisions of the Securities Act that prevail over the general limitation periods established by the Limitations Act, 2002. The amendment adds to that list the special limitation period specified in section 138.14 of the Securities Act for actions commenced under section 138.3 of that Act.

SCHEDULE 23
AMENDMENT TO THE
LOAN AND TRUST CORPORATIONS ACT

The definition of "loan corporation" in the Loan and Trust Corporations Act is amended to exclude retail associations that are subject to federal regulation under the Cooperative Credit Associations Act (Canada). The amendment also updates the statutory reference relating to credit unions and caisses populaires which are already excluded from the definition of "loan corporation".

SCHEDULE 24
AMENDMENT TO THE
MINISTRY OF REVENUE ACT

If a person fails to file a return under any Act administered by the Minister, new section 15 of the Ministry of Revenue Act authorizes the Minister to withhold the payment of any refund of tax, interest or penalties to which the person may be entitled under any Act administered by the Minister until the return is filed.

SCHEDULE 25
AMENDMENTS TO THE
MOTOR VEHICLE ACCIDENT CLAIMS ACT

The amendments to sections 5 and 7 of the Motor Vehicle Accident Claims Act permit the forms required under those sections to be approved by the Director of the Motor Vehicle Accident Claims Fund instead of being prescribed by regulations.

SCHEDULE 26
AMENDMENTS TO THE MUNICIPAL ACT, 2001

Section 314 of the Municipal Act, 2001 currently allows municipalities to apply graduated tax rates to properties in the commercial and industrial property classes. The section is amended to clarify that graduated tax rates may be applied as well to optional classes within the commercial and industrial classes.

Section 315 of the Act currently authorizes the Minister of Finance to make regulations prescribing rates of tax for railway and power utility rights-of-way in each geographic area set out in the section. The re-enactment of the definition of "Upper-tier commercial tax" in subsection 315 (3) of the Act clarifies that only that portion of the commercial tax levied in the local municipality is included in determining the upper-tier municipality's share of the tax for railway and power utility rights-of-way. Subsection 315 (12) of the Act provides that until 2005 the Minister of Finance may prescribe different transitional tax rates for these lands if the lands have been continuously owned by the same owner. The enactment of clause 315 (4) (a.1) of the Act authorizes the Minister of Finance to prescribe by regulation different tax rates for different railway or power utility rights-of-way for 2005 and subsequent years.

Section 330 of the Act permits municipalities, other than lower-tier municipalities, to pass a by-law to establish a percentage by which tax decreases are limited for a year in order to recover all or part of the revenue foregone as a result of tax "capping" under section 329 of the Act. The re-enactment of paragraph 4 of subsection 330 (4) of the Act permits the Minister of Finance to prescribe a percentage that is different from the percentage otherwise applicable.

The amendment to clause 357 (1) (e) of the Act permits applications for a refund on a mobile unit that is removed from a site even if the mobile unit remains in the same local municipality after its removal.

Currently, subsections 365.1 (2) and (3) of the Act permit a local municipality to pass a by-law cancelling or freezing property taxes on eligible "brownfields" properties, on such conditions as the municipality may determine. The enactment of subsection 365.1 (3.1) of the Act permits the municipality to include in the by-law a provision that the taxes will become payable only if the municipality determines that some or all of the conditions set out in the by-law have not been met as required. The enactment of subsection 365.1 (3.2) of the Act provides for interest to be charged if the taxes become payable as a result of a failure to meet the required conditions.

Section 474 of the Act currently provides that Parts XXII.1 and XXII.2 of the predecessor Act continue to apply with respect to municipal taxes. The re-enactment of that section provides that Part XXII.3 (Limitation on Taxes for Certain Property Classes Beginning in 2001) of the predecessor Act also continues to apply and clarifies that regulations may continue to be made relating to taxes payable for years before 2003.

SCHEDULE 27
AMENDMENT TO THE NORTHERN
ONTARIO HERITAGE FUND ACT

The Northern Ontario Heritage Fund Act is amended to remove a reference to The District Municipality of Muskoka.

SCHEDULE 28
AMENDMENT TO THE NORTHERN
SERVICES BOARDS ACT

The Northern Services Boards Act is amended to remove a reference to The District Municipality of Muskoka.

SCHEDULE 29
AMENDMENTS TO THE ONTARIO HOME OWNERSHIP SAVINGS PLAN ACT

The amendments to the Ontario Home Ownership Savings Plan Act provide that only contributions to a plan made on or before May 18, 2004 are qualified contributions for the purposes of a personal income tax credit. No obligation to repay personal income tax credits will arise on the withdrawal of assets from an Ontario home ownership savings plan after December 31, 2005 if the planholder has complied with the Act and the regulations.

SCHEDULE 30
AMENDMENTS TO THE ONTARIO MUNICIPAL ECONOMIC INFRASTRUCTURE FINANCING AUTHORITY ACT, 2002

The short title of the Ontario Municipal Economic Infrastructure Financing Authority Act, 2002 is changed to the Ontario Strategic Infrastructure Financing Authority Act, 2002, and various amendments are made to the Act as a result of the change in the name of the Authority.

SCHEDULE 31
AMENDMENTS TO THE
PENSION BENEFITS ACT

The amendments to the Pension Benefits Act update language in the Act relating to other Acts and change a reference from the "Treasurer of Ontario" to the "Minister of Finance", and from "first class mail" to "regular mail".

SCHEDULE 32
AMENDMENT TO THE PROVINCE OF ONTARIO SAVINGS OFFICE PRIVATIZATION ACT, 2002

Subsection 9 (1) of the Province of Ontario Savings Office Privatization Act, 2002 authorizes the transfer of safety deposit boxes and their contents from a Province of Ontario Savings Office to a new depositary. Subsection 9 (4) of the Act permits the Crown to dispose of the contents of unclaimed safety deposit boxes and transfer the proceeds, if any, to the Consolidated Revenue Fund. The re-enactment of subsection 9 (5) of the Act and the enactment of subsection 9 (6) of the Act ensure that the Crown continues to be protected from liability on such transfers and dispositions and bars any claim for damages or otherwise against the Crown, its agents, servants and employees with respect to the disposition of the contents of the unclaimed safety deposit boxes.

SCHEDULE 33
AMENDMENTS TO THE
RETAIL SALES TAX ACT

Currently, the fair value of transient accommodation would include the amount of all charges payable to providers of the accommodation. Subsection 1 (1.1) of the Retail Sales Tax Act exempts a purchaser from tax in respect of a fee imposed by a provider of transient accommodation on or after May 19, 2004 and before May 19, 2005, if the provider of the transient accommodation forwards the fee to a non-profit agency to be used for the promotion of tourism in Ontario and if certain other conditions are satisfied. The fee must not exceed 3 per cent of the amount that would have been the fair value of the transient accommodation if no fee had been imposed.

Subsection 4 (1) of Schedule H to the Government Efficiency Act, 2002 will repeal definitions of classes of insurance that appear in section 1 of the Insurance Act. Subsection 43 (1) of the Insurance Act allows the Superintendent of Financial Services to issue orders defining classes of insurance for the purposes of that Act. The amendments to clauses 2.1 (8) (d) and (l) of the Act are complementary to the amendments enacted by Schedule H to the Government Efficiency Act, 2002.

Currently, subsection 18 (3) of the Act permits the Minister of Finance to assess a person for tax payable under the Act, but only within four years after the tax becomes payable. Under the current Act, an exception to this four-year period is made where there has been neglect, carelessness, wilful default or fraud. Amendments to section 18 of the Act permit a taxpayer to waive the four-year time limit by filing a waiver with the Minister. Once filed, the waiver may be revoked by the taxpayer, but it continues to have effect for one year.

Similar amendments are made to section 20 of the Act in respect of the assessment of penalties against vendors for failing to collect tax under the Act.

The amendments to sections 34 and 35 of the Act provide an exception to the compound interest rules currently in the Act. If the tax is imposed under section 3 of the Act in respect of a multijurisdictional vehicle, any interest imposed is calculated in accordance with the rules for calculating interest payable under the Fuel Tax Act by Ontario-licensed interjurisdictional carriers who hold "IFTA" licences.

Under the new clause 48 (3) (c) of the Act, the Minister of Finance may make regulations providing for the use of purchase exemption certificates and other documents where purchasers are exempt from tax under the Act.

Clause 48 (3) (k) of the Act currently permits the Minister of Finance to make regulations providing for a rebate or partial rebate of tax paid on the purchase of a motor vehicle to transport a physically disabled person. The re-enactment of the clause provides that this rebate is available if the motor vehicle is purchased or ordered on or before May 18, 2004 and delivered before August 1, 2004.

The new clause 48 (3) (s) of the Act permits the Minister of Finance to make regulations to provide for a rebate or partial rebate of tax in respect of wind energy systems, micro hydro-electric energy systems and geothermal energy systems that are installed in residential premises after March 27, 2003 and before November 26, 2007. The regulations will prescribe the terms and conditions of the rebate, including who is paid the rebate, the manner of determining the amount of the rebate and the classes of residential premises that qualify.

SCHEDULE 34
AMENDMENTS TO THE SECURITIES ACT

The definition of "forward-looking information" in section 138.1 of the Securities Act is moved to subsection 1 (1) of the Act and is amended to specify that it includes all disclosure regarding possible events, conditions or results of operations, not just future-oriented financial information.

The definition of "mutual fund" in subsection 1 (1) of the Act is amended by deleting the authority for the Commission to designate an issuer or class of issuers as mutual funds or designating them not to be mutual funds.

A definition of "non-redeemable investment fund" is added to the Act.

Section 3.4 of the Act is amended in connection with the requirement that the Ontario Securities Commission pay into the Consolidated Revenue Fund certain money received by it to settle enforcement proceedings. The Minister of Finance is authorized to establish guidelines about the allocation of money received by the Commission in specified circumstances.

Clause 75 (3) (a) of the Act is amended to correct an error in a cross-reference.

Currently, section 126.2 of the Act prohibits the making of misleading or untrue statements that significantly affect or would reasonably be expected to have a significant effect on the market price or value of a security. It is amended so that it prohibits misleading or untrue statements that would reasonably be expected to have a significant effect on the market price or value of a security. A further amendment specifies that a breach of this prohibition does not give rise to a cause of action for damages.

Subsection 127 (3.1) of the Act provides that, in specified circumstances, a person is not entitled to participate in a proceeding in which an order may be made under paragraph 10 of subsection 127 (1) of the Act against another person to disgorge amounts obtained as a result of non-compliance. An amendment provides that, in the specified circumstances, a person is also not entitled to participate in a proceeding in which an order may be made under paragraph 9 of subsection 127 (1) of the Act against another person to pay an administrative penalty.

Technical amendments are made to subsections 130 (1), 130.1 (1) and 131 (1) and (2) of the Act concerning liability for misrepresentation in various types of documents.

New section 132.1 of the Act provides that a person or company is not liable for a misrepresentation in forward-looking information contained in specified types of documents in the circumstances described in that section.

Technical amendments are made to sections 138.1 to 138.14 of the Act. They include replacing references to "proceeding" with "action" in those sections.

The definition of "expert" in section 138.1 of the Act is amended to exclude an entity that is an approved rating organization under National Instrument 44-101 of the Canadian Securities Administrators.

Subsection 138.4 (9) of the Act establishes a statutory defence in specified circumstances for persons and companies when there is a misrepresentation in a public oral statement containing forward-looking information. The new subsections 138.4 (9.1) and (9.2) of the Act provide that, in specified circumstances, a person or company shall be deemed to have satisfied certain requirements for the statutory defence.

An amendment to subsection 142 (2) of the Act provides that the Crown is exempt from liability under sections 126.1 (fraud and market manipulation), 126.2 (misleading or untrue statements) and 130.1 (liability for misrepresentation in offering memorandum) of the Act.

An amendment to subsection 143 (1) of the Act specifies that the Commission may make rules under the Act to provide that Part XXIII.1 (Civil Liability for Secondary Market Disclosure) of the Act applies to certain acquisitions or dispositions of an issuer's security, and to provide that the Part does not apply to certain transactions or classes of transactions.

The enactment of subsection 143.12 (1.1) of the Act provides for the appointment by the Minister of advisory committees to review securities legislation and rules every four years after the appointment of the previous advisory committee.

SCHEDULE 35
AMENDMENTS TO THE TAX TERMINOLOGY HARMONIZATION ACT, 2004

Subsection 5 (2) of the Tax Terminology Harmonization Act, 2004 is amended to clarify the coming into force provisions of section 2 of the Act.

SCHEDULE 36
AMENDMENTS TO THE TOBACCO TAX ACT

A definition of "acquire" is added to section 1 of the Tobacco Tax Act to clarify that the acquisition of tobacco products includes the manufacturing of products for the purposes of the Act.

Currently, subsection 6 (3) of the Act requires an interjurisdictional transporter to carry a uniform manifest form. The subsection is modified to allow an interjurisdictional transporter to carry the information prescribed by the Minister, with respect to bulk tobacco the transporter is carrying, in a form approved by the Minister. Consequential amendments are made to clauses 6 (5) (b) and 6 (11) (c) of the Act to allow the use of a uniform manifest form or the prescribed information.

The enactment of subsection 9.1 (1) of the Act prohibits a person from delivering unmarked cigarettes or causing unmarked cigarettes to be delivered to a person in Ontario who is not entitled to purchase, possess, store or sell unmarked cigarettes. Subsection 9.1 (2) of the Act prohibits a person from delivering or causing to be delivered unmarked cigarettes that are intended to be sold to persons liable to pay tax on the cigarettes under the Act. Subsection 9.1 (3) of the Act creates an administrative penalty for contravening subsection (1) or (2), and subsection 9.1 (4) of the Act creates an offence for contravening subsection (1) or (2).

Section 13.4 of the Act authorizes the Minister of Finance to enter into an agreement with the federal government to share information with respect to the administration and enforcement of the Act.

Amendments to section 19 of the Act permit a taxpayer to waive the four-year time limit for issuing an assessment by filing a waiver with the Minister. Once filed, the waiver may be revoked by the taxpayer, but it continues to have effect for one year.

The enactment of section 23.1 of the Act authorizes the seizure of unmarked cigarettes if the unmarked cigarettes are found during an inspection under subsection 23 (1) in the possession of a wholesaler or retail dealer who is not authorized under the Act to be in possession of the unmarked cigarettes. The person from whom the cigarettes are seized may apply to court for the return of the unmarked cigarettes upon proof that he or she was authorized under the Act to be in possession of the unmarked cigarettes.

Currently, under subsection 24 (1) of the Act, Ministry investigators may stop and detain a vehicle if they have reasonable and probable grounds to suspect that the vehicle contains evidence of a contravention of the Act. Where documents are seized in an investigation under that subsection, the Minister must apply to the court within 14 days after seizing the documents for an order to continue to hold the documents until they are required for a court proceeding. An amendment to clause 24 (1) (c) of the Act and the enactment of subsections 24 (2) to (2.4) of the Act limit the retention of the documents to three months from the date of seizure, unless a court proceeding has been instituted or a new order is made. The enactment of clause 24 (1) (d) of the Act permits investigators to use investigative techniques to examine cigarettes contained in the vehicle to ensure the cigarettes are marked or stamped in accordance with the Act.

Currently, subsection 24 (3) of the Act provides that tobacco in bulk may be seized when it is found in the control of certain unauthorized persons. An amendment provides that, if such persons have more than 200 unmarked cigarettes in their control, the cigarettes may be seized. Exceptions are set out in subsections 24 (4) and (4.1) of the Act. An administrative penalty related to subsection 24 (3) of the Act is enacted in subsection 24 (12) of the Act.

Subsection 29 (1.1) of the Act permits the seizure of unmarked cigarettes intended for sale from a person who is not entitled to be in possession of unmarked cigarettes. The person from whom the cigarettes are seized has the right to demonstrate to a court that he or she was in lawful possession of them and that the unmarked cigarettes should be returned.

Subsections 29 (2.1), 31 (3) and 35 (2.1) of the Act are amended to remove the mandatory requirement for the court to order the forfeiture of tobacco when a person is convicted of an offence relating to the tobacco. Forfeiture is made automatic under the Act on conviction.

A new section 29.1 of the Act is enacted to place limitations on the amount of cigars and other tobacco, apart from cigarettes, that a person may have in his or her possession, without having documentation to demonstrate that Ontario's tobacco tax has been paid on the tobacco. Such a person is permitted to have 50 cigars or one kilogram of other tobacco in his or her possession. Offence and administrative penalty provisions in respect of contraventions are included in the section.

The enactment of section 32.1 of the Act authorizes the public disclosure by the Minister of the names and addresses of persons registered or designated under the Act, for the purposes of administering the Act.

The enactment of section 36.1 of the Act provides the Minister with the authority to obtain "production orders" requiring third parties to produce documents that may be relevant to investigations of contraventions of the Act. The new section permits a provincial offences officer to apply to a justice for an order requiring a person, other than the person under investigation, to produce documents relating to the investigation. The justice may impose terms and conditions relating to the information in an order issued under this section.

The enactment of section 36.2 of the Act provides that where the Minister applies for a search warrant under section 158 of the Provincial Offences Act, the Minister may request that the warrant authorize the use of any investigative technique, procedure or test described in the warrant to obtain evidence of a contravention of the Act or the regulations.

Currently, section 37 of the Act allows the Lieutenant Governor in Council to enter into agreements with other provinces and territories for the purposes of administering the Act. The section is re-enacted to allow the Minister of Finance to enter into such agreements instead, and to allow the agreements to be made with any jurisdiction. Agreements may authorize payment for services performed under the agreements.

Currently, various provisions of the Act require registrants under the Act to carry and produce notarial copies of certain documents. These provisions are amended to make "true copies", such as photocopies, acceptable.

SCHEDULE 37
AMENDMENTS TO THE
TREASURY BOARD ACT, 1991

Technical amendments are made to the Treasury Board Act, 1991 in connection with the recent implementation of a system of accrual-based appropriations. The Act is also amended to remove obsolete provisions that applied in respect of fiscal years commencing before April 1, 2003. The current provisions relating to special warrants are re-enacted in section 7 of the Act, and section 7.1 of the Act is repealed.

The current provisions relating to Board orders are re-enacted with amendments in section 8 of the Act, and section 8.1 of the Act is repealed. The amendments provide that the effect of orders issued by Treasury Board under section 8 of the Act is to transfer the amount of spending authority between appropriations for a fiscal year. Subsection 8 (3) of the Act allows Treasury Board to consolidate surplus spending authorities under various appropriations by using them as offsets for increases to appropriations for future contingencies. Under subsection 8 (6) of the Act, the circumstances that cause Treasury Board to issue certain orders after the end of a fiscal year must be reported in the Public Accounts for that fiscal year.

SCHEDULE 38
AMENDMENTS RELATING TO
CLASSES OF INSURANCE

Subsection 4 (1) of Schedule H to the Government Efficiency Act, 2002 will repeal definitions of classes of insurance that appear in section 1 of the Insurance Act. Subsection 43 (1) of the Insurance Act allows the Superintendent of Financial Services to issue orders defining classes of insurance for the purposes of that Act. The amendments to the Corporations Act, Family Law Act and Registered Insurance Brokers Act are complementary to the amendments enacted by Schedule H to the Government Efficiency Act, 2002.

SCHEDULE 39
NORTHERN ONTARIO GROW BONDS CORPORATION ACT, 2004

A new statute, the Northern Ontario Grow Bonds Corporation Act, 2004, is enacted and comes into force on proclamation. The new Act establishes and governs the Northern Ontario Grow Bonds Corporation, a corporation without share capital, composed of the members of its board of directors. The members of the board of directors are appointed by the Lieutenant Governor in Council.

The objects of the Corporation are set out in section 3 and include fostering business development in northern Ontario and providing debt financing to be used by eligible businesses and entities for purposes prescribed by the regulations.

The Corporation's powers are set out in section 4 of the new Act. The Corporation cannot borrow, invest or manage financial risks without the consent of the Minister of Finance. The Corporation cannot establish or acquire an interest in a subsidiary, trust, partnership or other entity without the consent of the Minister of Finance.

Section 8 authorizes the Minister of Northern Development and Mines to issue policies and directives that the Corporation is required to implement.

Section 16 authorizes the Crown to borrow money and advance it to the Corporation. The Lieutenant Governor in Council may also authorize the purchase of securities of the Corporation.

Section 19 governs the liability of directors, officers, employees and agents of the Corporation. They are not liable for their acts and omissions in good faith in the exercise of powers and performance of duties under the Act. The Corporation remains liable for the acts and omissions of its directors, officers, employees and agents.

[38] Bill 149 Original (PDF)

Bill 149 2004

An Act to implement
2004 Budget measures, enact the
Northern Ontario Grow Bonds
Corporation Act, 2004
and amend various Acts

CONTENTS

1.

Contents of this Act

2.

Commencement

3.

Short title

Schedule 1

Amendments to the Administration of Justice Act

Schedule 2

Amendment to the Agricultural and Horticultural Organizations Act

Schedule 3

Amendments to the Assessment Act

Schedule 4

Amendment to the Business Corporations Act

Schedule 5

Amendment to the Capital Investment Plan Act, 1993

Schedule 6

Amendments to the Commodity Futures Act

Schedule 7

Amendments to the Community Small Business Investment Funds Act

Schedule 8

Amendments to the Co-operative Corporations Act

Schedule 9

Amendments to the Corporations Tax Act

Schedule 10

Amendments to the Education Act

Schedule 11

Amendments to the Electricity Act, 1998

Schedule 12

Amendments to the Employer Health Tax Act

Schedule 13

Amendments to the Financial Administration Act

Schedule 14

Amendment to the Financial Services Commission of Ontario Act, 1997

Schedule 15

Amendments to the Fuel Tax Act

Schedule 16

Amendments to the Gasoline Tax Act

Schedule 17

Amendment to the GO Transit Act, 2001

Schedule 18

Amendments to the Highway Traffic Act

Schedule 19

Amendments to the Income Tax Act

Schedule 20

Amendments to the Insurance Act

Schedule 21

Amendments to the Land Transfer Tax Act

Schedule 22

Amendment to the Limitations Act, 2002

Schedule 23

Amendment to the Loan and Trust Corporations Act

Schedule 24

Amendment to the Ministry of Revenue Act

Schedule 25

Amendments to the Motor Vehicle Accident Claims Act

Schedule 26

Amendments to the Municipal Act, 2001

Schedule 27

Amendment to the Northern Ontario Heritage Fund Act

Schedule 28

Amendment to the Northern Services Boards Act

Schedule 29

Amendments to the Ontario Home Ownership Savings Plan Act

Schedule 30

Amendments to the Ontario Municipal Economic Infrastructure Financing Authority Act, 2002

Schedule 31

Amendments to the Pension Benefits Act

Schedule 32

Amendment to the Province of Ontario Savings Office Privatization Act, 2002

Schedule 33

Amendments to the Retail Sales Tax Act

Schedule 34

Amendments to the Securities Act

Schedule 35

Amendment to the Tax Terminology Harmonization Act, 2004

Schedule 36

Amendments to the Tobacco Tax Act

Schedule 37

Amendments to the Treasury Board Act, 1991

Schedule 38

Amendments relating to Classes of Insurance

Schedule 39

Northern Ontario Grow Bonds Corporation Act, 2004

______________

Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:

Contents of this Act

1.  This Act consists of this section, sections 2 and 3 and the Schedules to this Act.

Commencement

2.  (1)  Subject to subsections (2) and (3), this Act comes into force on the day it receives Royal Assent.

Same

(2)  The Schedules to this Act come into force as provided in each Schedule.

Same

(3)  If a Schedule to this Act provides that any provisions are to come into force on a day to be named by proclamation of the Lieutenant Governor, a proclamation may apply to one or more of those provisions, and proclamations may be issued at different times with respect to any of those provisions.

Short title

3.  The short title of this Act is the Budget Measures Act (Fall), 2004.

SCHEDULE 1
AMENDMENTS TO THE ADMINISTRATION OF JUSTICE ACT

1.  Section 1 of the Administration of Justice Act is amended by adding the following definitions:

"fee" means a fee whose payment is required by a regulation made under this Act; ("frais")

"Ministry" means the Ministry of the Attorney General. ("ministère")

2.  The Act is amended by adding the following sections:

Purpose

4.1  The purpose of sections 4.2 to 4.9 is to provide a mechanism for fee waivers, so that individuals who might otherwise be denied access to justice because of their financial circumstances can be excused from paying fees.

Effect of certificate

4.2  The person named in a certificate given under section 4.3, 4.4, 4.5, 4.6 or 4.7 is excused from paying any fees that,

(a) would be payable on or after the date of the certificate; and

(b) relate to the court proceeding or tribunal order described in the certificate.

Fee waiver re court proceeding: clerk or registrar

Request

4.3  (1)  A person may request a fee waiver under this section with respect to a court proceeding by giving a written request, in the form provided by the Ministry, to the clerk or registrar of the court in which the proceeding is or would be commenced.

Timing

(2)  The request may be made at any stage in the proceeding.

Same

(3)  Without limiting the generality of subsection (2), a person who has not previously obtained a fee waiver may request one after an order is made in the proceeding, in order to be excused from paying any fees relating to the enforcement of the order.

Certificate

(4)  If the clerk or registrar determines that the person meets the prescribed conditions, he or she shall give the person a certificate indicating that all fees that are or would be payable by the person on or after the date of the certificate with respect to the proceeding, including any fees relating to the enforcement of an order in the proceeding, are waived.

Decision final

(5)  The decision of the clerk or registrar is final.

Fee waiver re court proceeding: judge, etc.

Request

4.4  (1)  A person may request a fee waiver under this section with respect to a court proceeding by giving a written request, in the form provided by the Ministry, to a judge, deputy judge or case management master of the court in which the proceeding is or would be commenced.

Timing

(2)  The request may be made at any stage in the proceeding.

Same

(3)  Without limiting the generality of subsection (2), a person who has not previously obtained a fee waiver may request one after an order is made in the proceeding, in order to be excused from paying any fees relating to the enforcement of the order.

Role of clerk or registrar

(4)  The clerk or registrar of the court shall consider the request before it is considered by the judge, deputy judge or case management master, and if he or she determines that the person meets the prescribed conditions referred to in subsection 4.3 (4),

(a) the clerk or registrar shall deal with the request as if it had been made under section 4.3 rather than under this section; and

(b) subsections (5) to (9) do not apply.

Order re certificate

(5)  If the judge, deputy judge or case management master is of the opinion that the person meets the conditions set out in subsection (7), he or she shall make an order directing the clerk or registrar to give the person a certificate indicating that all fees that are or would be payable by the person with respect to the proceeding on or after the date of the certificate, including any fees relating to the enforcement of an order in the proceeding, are waived.

Date of certificate

(6)  The date of the certificate shall be the date on which the order is made under subsection (5).

Conditions

(7)  The conditions referred to in subsection (5) are:

1. The person lacks the financial means to pay fees relating to the proceeding or to the enforcement of an order made in the proceeding, as the case may be.

2. Commencing, defending, continuing or intervening in the proceeding, as the case may be, is not frivolous, vexatious or otherwise an abuse of the process of the court.

Exception

(8)  The condition set out in paragraph 2 of subsection (7) does not need to be satisfied in the case of a request described in subsection (3).

Decision final

(9)  The decision of the judge, deputy judge or case management master is final.

Fee waiver re enforcement of court order: sheriff

Request

4.5  (1)  A person who is entitled to have a court order enforced by a sheriff on payment of a fee may request a fee waiver under this section by giving the sheriff a written request, in the form provided by the Ministry.

Certificate

(2)  If the sheriff determines that the person meets the prescribed conditions, he or she shall give the person a certificate indicating that all fees relating to the enforcement of the order that are or would be payable by the person on or after the date of the certificate are waived.

Decision final

(3)  The sheriff's decision is final.

Bailiff

(4)  In this section, references to a sheriff include a bailiff.

Fee waiver re enforcement of tribunal order: sheriff

Request

4.6  (1)  A person who is entitled to have a tribunal order enforced by a sheriff on payment of a fee may request a fee waiver under this section by giving a written request to the sheriff, in the form provided by the Ministry.

Certificate

(2)  If the sheriff determines that the person meets the prescribed conditions, he or she shall give the person a certificate indicating that all fees relating to the enforcement of the order that are or would be payable by the person on or after the date of the certificate are waived.

Decision final

(3)  The sheriff's decision is final.

Fee waiver re enforcement of tribunal order: judge, etc.

Request

4.7  (1)  A person who is entitled to have a tribunal order enforced by a sheriff on payment of a fee may request a fee waiver under this section by giving a written request, in the form provided by the Ministry,

(a) to a judge or deputy judge of the Small Claims Court, if the order relates only to the payment of an amount within the monetary jurisdiction of that court; or

(b) to a judge or case management master of the Superior Court of Justice, in any other case.

Role of clerk or registrar

(2)  The clerk or registrar of the court shall consider the request before it is considered by the judge, deputy judge or case management master, and if the clerk or registrar determines that the person meets the prescribed conditions referred to in subsection 4.3 (4),

(a) he or she shall give the person a certificate indicating that all fees relating to the enforcement of the tribunal order that are or would be payable by the person on or after the date of the certificate are waived; and

(b) subsections (3) to (5) do not apply.

Order re certificate

(3)  If the judge, deputy judge or case management master is of the opinion that the person lacks the financial means to pay fees relating to the enforcement of the tribunal order, he or she shall make an order directing the clerk or registrar to give the person a certificate indicating that all such fees that are or would be payable by the person on or after the date of the certificate are waived.

Date of certificate

(4)  The date of the certificate shall be the date on which the order is made under subsection (3).

Decision final

(5)  The decision of the judge, deputy judge or case management master is final.

Rules of court and Statutory Powers Procedure Act do not apply

4.8  The rules of court and the Statutory Powers Procedure Act do not apply to requests under sections 4.3, 4.4, 4.5, 4.6 and 4.7.

No fee for request

4.9  No fee is payable for anything done in connection with a request under section 4.3, 4.4, 4.5, 4.6 or 4.7.

3.  Section 5 of the Act is repealed and the following substituted:

Regulations

5.  (1)  The Lieutenant Governor in Council may make regulations,

(a) requiring the payment of fees for any thing required or authorized under any Act to be done by any person in the administration of justice and prescribing the amounts of the fees;

(b) providing for the payment of fees and allowances by Ontario in connection with services under any Act for the administration of justice and prescribing the amounts of the fees and allowances;

(c) requiring the payment of fees in respect of proceedings in any court and prescribing the amounts of the fees;

(d) exempting persons or classes of persons from paying a fee prescribed under clause (a) or (c);

(e) prescribing conditions for the purposes of subsections 4.3 (4), 4.5 (2) and 4.6 (2);

(f) exempting a fee from the application of sections 4.3 to 4.9;

(g) exempting persons or classes of persons from the application of sections 4.3 to 4.9;

(h) governing requests under sections 4.3, 4.4, 4.5, 4.6 and 4.7.

Different fees

(2)  A regulation made under clause (1) (a) or (c) may prescribe different fees for different persons or classes of persons.

Maximum amounts

(3)  A regulation made under clause (1) (a) or (c) may establish a maximum amount for a fee rather than prescribing a specific amount.

General or particular

(4)  A regulation made under subsection (1) may be general or particular in its application.

Commencement

4.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

Same

(2)  Sections 1 to 3 come into force on a day to be named by proclamation of the Lieutenant Governor.

SCHEDULE 2
AMENDMENT TO THE AGRICULTURAL AND HORTICULTURAL ORGANIZATIONS ACT

1.  Section 25 of the Agricultural and Horticultural Organizations Act is amended by adding the following subsection:

International Plowing Match

(4)  The local organizing committee for the annual International Plowing Match shall be deemed to be an agricultural society in the year it hosts the International Plowing Match, but only for the purposes of the application of subsection 9 (2) of the Retail Sales Tax Act to the International Plowing Match.

Commencement

2.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

Same

(2)  Section 1 shall be deemed to have come into force on January 1, 2004.

SCHEDULE 3
AMENDMENTS TO THE ASSESSMENT ACT

1.  (1)  Subsection 2 (2) of the Assessment Act, as amended by the Statutes of Ontario, 1994, chapter 36, section 1, 1997, chapter 5, section 2, 1997, chapter 29, section 2, 1997, chapter 43, Schedule G, section 18, 2000, chapter 25, section 1, 2001, chapter 23, section 1, 2002, chapter 17, Schedule F, Table, 2002, chapter 22, section 1 and 2004, chapter 7, section 1, is amended by adding the following clause:

(a) prescribing information for the purposes of paragraph 21 of subsection 14 (1);

(2)  Clause 2 (2) (f) of the Act, as enacted by the Statutes of Ontario, 2001, chapter 23, section 1, is repealed and the following substituted:

(f) prescribing buildings, structures or portions of buildings or structures for the purposes of subsection 19.0.1 (1) and prescribing their assessed value or the manner of determining their assessed value for the purposes of that subsection;

2.  Paragraph 27 of subsection 3 (1) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 29, section 3, is repealed and the following substituted:

Large non-profit theatres

27. Land owned by a non-profit corporation without share capital, other than any portion of the land occupied for more than 90 consecutive days by an entity other than a non-profit corporation without share capital, on which is situated a theatre containing at least 1,000 seats that is used for a total of at least 183 days in the taxation year for the rehearsal or presentation of live performances of drama, comedy, music or dance, including opera or ballet, if the live performances are not presented with the intention of generating profit, including land on which such a theatre is being constructed, but not if,

i. the theatre is operated or will be operated after it is constructed by an entity other than a non-profit corporation without share capital,

ii. the land is used as a dinner theatre, nightclub, tavern, cocktail lounge, bar, striptease club or similar establishment, or

iii. an establishment described in subparagraph ii is being constructed on the land.

3.  (1)  Section 3.1 of the Act, as enacted by the Statutes of Ontario, 2002, chapter 23, section 1, is repealed.

(2)  Despite subsections 3.1 (2), (3), (4) and (6) of the Act, as they read before subsection (1) came into force, no land is exempt from taxation after November 25, 2002 by reason of section 3.1 of the Act, as it read before subsection (1) came into force.

4.  Subsection 14 (1) of the Act, as amended by the Statutes of Ontario, 1992, chapter 17, section 4, 1997, chapter 5, section 9, 1997, chapter 29, section 6, 1997, chapter 31, section 143, 1997, chapter 43, Schedule G, section 18 and 2000, chapter 25, section 4, is amended by adding the following paragraph:

21. Such other information as may be prescribed by the Minister.

5.  (1)  Section 19 of the Act, as amended by the Statutes of Ontario, 1997, chapter 5, section 12, 1997, chapter 29, section 9, 1998, chapter 33, section 5, 1999, chapter 6, section 2, 1999, chapter 9, section 11, 2000, chapter 25, section 5 and 2002, chapter 17, Schedule F, Table, is amended by adding the following subsection:

Prescribing assessed value

(2.1.1)  The Minister may make regulations prescribing the assessed value or the manner of determining the assessed value of an electricity generating station, other than an electricity generating station subject to section 19.0.1.

(2)  Subsection 19 (2.2) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 11, is amended by striking out "subsection (2.1)" and substituting "subsection (2.1) or (2.1.1)".

6.  (1)  Subsection 19.0.1 (1) of the Act, as re-enacted by the Statutes of Ontario, 2001, chapter 23, section 2, is amended by striking out "or" at the end of clause (a), by adding "or" at the end of clause (b) and by adding the following clause:

(c) by the Minister for a particular building or structure or portion of a building or structure specified by the Minister, as prescribed by the Minister.

(2)  Subsection 19.0.1 (4) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 15, Schedule E, section 1, is amended by adding "and" at the end of clause (a) and by striking out clause (c).

7.  Section 19.3 of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 13, is amended by striking out "October 31" and substituting "June 30".

8.  Subsection 25 (2) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 43, Schedule G, section 18, is repealed and the following substituted:

Notice

(2)  On or before March 1 of every year or such other date as the Minister may prescribe, the pipe line company shall notify the assessment corporation of the age, length and diameter of all of its transmission pipe lines located in each municipality on January 1 of that year.

9.  Subsection 30 (1) of the Act, as amended by the Statutes of Ontario, 1997, chapter 43, Schedule G, section 18, is amended by striking out "July 1" in the portion before clause (a) and substituting "March 1 or such other date as the Minister may prescribe".

10.  (1)  Subsection 32 (2) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 25, section 8 and amended by 2002, chapter 17, Schedule F, Table, is amended by striking out "for any part or all of the three preceding years" and substituting "for any part or all of the preceding year".

(2)  Section 32 of the Act, as amended by the Statutes of Ontario, 1997, chapter 43, Schedule G, section 18, 2000, chapter 25, section 8 and 2002, chapter 17, Schedule F, Table, is amended by adding the following subsections:

Change in tax liability

(3)  If, as a result of an amendment to this Act or the regulations, a property becomes exempt from taxation for a year or for part or all of the preceding year,

(a) the assessor shall make any assessment necessary to change the tax liability for the property;

(b) the clerk of the municipality, on receiving notice of the change in tax liability, shall alter the tax roll; and

(c) the municipality shall refund or credit to the owner the amount of any overpayment of taxes and any interest paid by the owner on the amount of the overpayment.

Change in tax methodology

(4)  If, as a result of an amendment to this Act or the regulations, the method of determining the assessed value of a property for a year or for any part or all of the preceding year is changed,

(a) the assessor shall make any assessment necessary to change the assessed value;

(b) the clerk of the municipality, on receipt of notice of the change, shall alter the tax roll; and

(c) the municipality shall,

(i) refund or credit to the owner of the property the amount of any overpayment of taxes and any interest paid by the owner on the amount of the overpayment, or

(ii) levy and collect from the owner of the property any additional taxes that have become payable as a result of the change in the assessment methodology.

Transitional

(5)  For the purposes of subsections (3) and (4), a reference to the preceding year includes a reference to a year ending before, on or after the day subsections (3) and (4) come into force.

11.  Subsection 34 (2) of the Act, as re-enacted by the Statutes of Ontario, 1998, chapter 3, section 8 and amended by 2002, chapter 17, Schedule F, Table, is amended by striking out "during the taxation year or the preceding November or December" and substituting "during the taxation year or the period after June 30 in the preceding taxation year".

Commencement

12.  (1)  Subject to subsections (2) and (3), this Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

Same

(2)  Section 2 shall be deemed to have come into force on January 1, 2003.

Same

(3)  Sections 7, 8 and 9 come into force on January 1, 2005.

SCHEDULE 4
AMENDMENT TO THE BUSINESS CORPORATIONS ACT

1.  Subsection 241 (1) of the Business Corporations Act, as amended by the Statutes of Ontario, 2004, chapter 16, Schedule D, Table, is repealed and the following substituted:

Notice of dissolution

(1)  Where the Director is notified by the Minister of Finance that a corporation is in default of complying with any of the following Acts, the Director may give notice by registered mail to the corporation or by publication once in The Ontario Gazette that an order dissolving the corporation will be issued unless the corporation remedies its default within 90 days after the notice is given:

1. Corporations Tax Act.

2. Employer Health Tax Act.

3. Fuel Tax Act.

4. Gasoline Tax Act.

5. Land Transfer Tax Act.

6. Retail Sales Tax Act.

7. Tobacco Tax Act.

Commencement

2.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

Same

(2)  Section 1 comes into force on a day to be named by proclamation of the Lieutenant Governor.

SCHEDULE 5
AMENDMENT TO THE CAPITAL INVESTMENT PLAN ACT, 1993

1.  Subsection 64 (1) of the Capital Investment Plan Act, 1993 is repealed and the following substituted:

Delegation of powers

(1)  Any power or duty conferred or imposed on the Minister of Finance under this or any other Act may be delegated by the Minister to the Deputy Minister of Finance or to any other public servant within the meaning of the Public Service Act who is employed in or provides services to the Ministry and, when purporting to exercise a delegated power or duty, the delegate shall be presumed conclusively to act in accordance with the delegation.

Commencement

2.  This Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

SCHEDULE 6
AMENDMENTS TO THE COMMODITY FUTURES ACT

1.  Clause 59.2 (b) of the Commodity Futures Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 11, is repealed and the following substituted:

(b) would reasonably be expected to have a significant effect on the market price or value of a commodity or contract.

2.  Subsection 60 (2.1) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 12, is repealed and the following substituted:

Exception

(2.1)  A person or company is not entitled to participate in a proceeding in which an order may be made under paragraph 9 or 10 of subsection (1) solely on the basis that the person or company may be entitled to receive any amount paid under the order.

3.  Subsection 76 (1) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 47, is repealed and the following substituted:

Review by Select or Standing Committee

Appointment of first advisory committee

(1)  On or before May 31, 2005, the Minister shall appoint an advisory committee to review the legislation, regulations and rules relating to matters dealt with by the Commission and the legislative needs of the Commission.

Appointment of subsequent advisory committees

(1.1)  The Minister shall appoint an advisory committee to perform the functions described in subsection (1) not later than 48 months after the appointment of the previous advisory committee appointed under subsection (1) or this subsection.

Commencement

4.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

Same

(2)  Section 1 comes into force on a day to be named by proclamation of the Lieutenant Governor.

SCHEDULE 7
AMENDMENTS TO THE COMMUNITY SMALL BUSINESS INVESTMENT FUNDS ACT

1.  (1)  The definition of "eligible business activity" in subsection 1 (1) of the Community Small Business Investment Funds Act, as re-enacted by the Statutes of Ontario, 1994, chapter 17, section 76 and amended by 1997, chapter 43, Schedule C, section 2 and 2004, chapter 16, section 1, is repealed and the following substituted:

"eligible business activity" means, except for the purposes of Parts III.1 and III.2, a business activity of a corporation or partnership that would be an "active business carried on by a corporation", as defined in subsection 125 (7) of the Income Tax Act (Canada) if the business activity were carried on by a corporation; ("activité commerciale admissible")

(2)  The definition of "eligible investment" in subsection 1 (1) of the Act, as amended by the Statutes of Ontario, 1997, chapter 43, Schedule C, section 2 and 2004, chapter 16, section 1, is amended by striking out "and" at the end of clause (b), by adding "and" at the end of clause (c) and by adding the following clause:

(d) in respect of an Ontario commercialization investment fund, an investment in an eligible business that is an eligible investment under Part III.2;

(3)  The definition of "eligible investor" in subsection 1 (1) of the Act, as amended by the Statutes of Ontario, 1997, chapter 43, Schedule C, section 2 and 2004, chapter 16, section 1, is amended by striking out "Part II, III or III.1" and substituting "Part II, III, III.1 or III.2".

(4)  The definition of "investment corporation" in subsection 1 (1) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule C, section 2 and amended by 2004, chapter 16, section 1, is amended by striking out "Part II, III or III.1" and substituting "Part II, III, III.1 or III.2".

(5)  Subsection 1 (1) of the Act, as amended by the Statutes of Ontario, 1994, chapter 17, section 76, 1997, chapter 43, Schedule C, sections 2 and 23, 1998, chapter 34, section 12, 1999, chapter 9, section 50, 2000, chapter 42, section 1 and 2004, chapter 16, section 1, is amended by adding the following definitions:

"Ontario commercialization investment fund" means a corporation or partnership registered under Part III.2; ("fonds ontarien de financement de la commercialisation")

"Ontario commercialization investment fund grant" means a grant for which an Ontario commercialization investment fund may apply under Part III.2; ("subvention ontarienne de financement de la commercialisation")

(6)  Section 1 of the Act, as amended by the Statutes of Ontario, 1994, chapter 17, section 76, 1997, chapter 43, Schedule C, sections 2 and 23, 1998, chapter 34, section 12, 1999, chapter 9, section 50, 2000, chapter 42, section 1, 2002, chapter 22, section 16 and 2004, chapter 16, section 1, is amended by adding the following subsection:

Interpretation, Ontario commercialization investment fund

(10)  A reference in this Act to an investment corporation shall be deemed to include a reference to a partnership that is registered as an Ontario commercialization investment fund and a reference to a shareholder of an investment corporation shall be deemed to include a reference to a partner in a partnership that is registered as an Ontario commercialization investment fund.

2.  (1)  Subsection 6 (4) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 43, Schedule C, section 4 and amended by 2002, chapter 22, section 19 and 2004, chapter 16, section 1, is amended by striking out "Minister of Enterprise, Opportunity and Innovation" and substituting "Minister of Economic Development and Trade".

(2)  Subsection 6 (6) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 43, Schedule C, section 4 and amended by 2002, chapter 22, section 19 and 2004, chapter 16, section 1, is amended by striking out "Minister of Enterprise, Opportunity and Innovation" in the portion before clause (a) and substituting "Minister of Economic Development and Trade".

3.  (1)  The definition of "eligible business" in subsection 12 (1) of the Act, as re-enacted by the Statutes of Ontario, 1994, chapter 17, section 82 and amended by 1997, chapter 43, Schedule C, section 5 and 2004, chapter 16, section 1, is repealed and the following substituted:

"eligible business" means a taxable Canadian corporation or Canadian partnership,

(a) that is primarily engaged in eligible business activities,

(b) that pays 50 per cent or more of its wages and salaries to employees whose ordinary place of employment is a permanent establishment of the corporation or partnership located in Ontario,

(c) that has 50 per cent or more of its full-time employees employed in respect of eligible business activities carried on by the corporation or partnership in Ontario,

(d) that, at the time the labour sponsored investment fund corporation makes the investment in the taxable Canadian corporation or Canadian partnership,

(i) has total gross assets, together with the total gross assets of all related corporations and partnerships, not exceeding $50,000,000, calculated in the prescribed manner, or such other amount as may be prescribed,

(ii) together with all related corporations and partnerships, does not have more than 500 employees, or such other number as may be prescribed, and

(iii) has been primarily engaged in eligible business activities for at least two years, or for the total length of time it has been carrying on any business if it has carried on business less than two years, and

(e) that is not an investment corporation registered under Part III.1 or III.2; ("entreprise admissible")

(2)  Section 12 of the Act, as amended by the Statutes of Ontario, 1994, chapter 17, section 82, 1997, chapter 43, Schedule C, section 5, 1999, chapter 9, section 52, 2000, chapter 42, section 3, 2002, chapter 22, section 20 and 2004, chapter 16, section 1, is amended by adding the following subsection:

Deemed eligible business, flow-through investment

(1.1)  A taxable Canadian corporation or Canadian partnership that is not an eligible business under subsection (1) only because it is not primarily engaged in eligible business activities shall be deemed to be an eligible business for the purposes of this Part if, within a reasonable number of days after the labour sponsored investment fund corporation makes an investment in the corporation or partnership, the corporation or partnership invests all or substantially all of the amount of the investment in a corporation or partnership that meets the definition of "eligible business" under subsection (1).

(3)  Subsection 12 (2) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule C, section 5 and amended by 2004, chapter 16, section 1, is amended by striking out "clause (d)" and substituting "subclause (d) (ii)".

4.  Section 15 of the Act, as amended by the Statutes of Ontario, 2004, chapter 16, section 1, is amended by adding the following subsections:

Moratorium

(4)  Despite subsection (1), the Minister may declare a registration moratorium during which no employee organization is entitled to registration of a corporation under this Part.

Time

(5)  A moratorium is effective for the period of time declared by the Minister, but the Minister may terminate or extend a moratorium if the Minister in his or her sole discretion considers the termination or extension necessary or advisable in the circumstances.

Notice

(6)  The Minister may impose, terminate or extend a moratorium without prior notice.

Transitional

(7)  Any moratorium declared by the Minister on or after May 18, 2004 and before subsection (4) comes into force shall be deemed to be a moratorium declared in accordance with this section, effective for the period of time declared by the Minister.

5.  (1)  Clause 16.1 (2) (d) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 6 and amended by 2004, chapter 16, section 1, is repealed and the following substituted:

(d) if the aggregate cost of the corporation's investments, each of which is an eligible investment in a research business that was held at the end of the preceding year, is equal to at least 50 per cent, or such other percentage as may be prescribed, of its capital available for investment at August 31 or December 31 of that year, whichever amount of capital is less, or if, instead, the corporation gives the undertaking described in subsection (5).

(2)  Subsection 16.1 (5) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 6 and amended by 2004, chapter 16, section 1, is repealed and the following substituted:

Undertaking re investments

(5)  For the purposes of clause (2) (d), a labour sponsored investment fund corporation that has not made any investments may give the Minister a written undertaking that, before the end of the calendar year referred to in subsection (2), it will make one or more investments, each of which is an eligible investment in a research business and that the cost of those investments will equal at least 50 per cent, or such other percentage as may be prescribed, of the capital available for investment by the corporation at August 31 or December 31 of that year, whichever amount of capital is less.

6.  The definition of "D" in subsection 17 (1) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 54 and amended by 2004, chapter 16, section 1, is repealed and the following substituted:

"D" is 70 per cent of the lesser of,

(a) the aggregate amount of gains of the corporation realized on its eligible investments before the end of the applicable calendar year, and

(b) the amount of "C";

7.  (1)  Clause 18 (1) (a) of the Act, as amended by the Statutes of Ontario, 1994, chapter 17, section 85 and 2004, chapter 16, section 1, is repealed and the following substituted:

(a) the investment is made in an eligible business;

(2)  Subsection 18 (1) of the Act, as amended by the Statutes of Ontario, 1994, chapter 17, section 85, 1999, chapter 9, section 55 and 2004, chapter 16, section 1, is amended by adding "and" at the end of clause (b) and by striking out clause (c).

(3)  Subsections 18 (5) and (6) of the Act, as amended by the Statutes of Ontario, 2004, chapter 16, section 1, subsection 18 (7) of the Act, as amended by 1994, chapter 17, section 85 and 2004, chapter 16, section 1, and subsection 18 (9) of the Act, as enacted by 1994, chapter 17, section 85 and amended by 2004, chapter 16, section 1, are repealed.

(4)  Subsection 18 (11) of the Act, as re-enacted by the Statutes of Ontario, 1999, chapter 9, section 55 and amended by 2002, chapter 22, section 21 and 2004, chapter 16, section 1, is repealed and the following substituted:

Relending, etc., to holding company

(11)  Despite subclause (1) (d) (i), in the case of an investment in a corporation or partnership described in subsection 12 (1.1), the investment may be used by the eligible business for the purpose of relending to an eligible business or to a related corporation or partnership, but only if the investment is not used or intended to be used by the recipient corporation or partnership in a manner that contravenes clause (1) (d).

(5)  Section 18 of the Act, as amended by the Statutes of Ontario, 1994, chapter 17, section 85, 1996, chapter 29, section 11, 1999, chapter 9, section 55, 2002, chapter 22, section 21 and 2004, chapter 16, section 1, is amended by adding the following subsections:

Contravention of spirit and intent

(12)  Despite subsection (1) and any order made under subsection (10), if the Minister is of the opinion that a labour sponsored investment fund corporation has directly or indirectly through a transaction or series of transactions contravened the spirit and intent of this Act, the Minister,

(a) shall make an order that a particular investment is not an eligible investment as of the date of the transaction or the date of the first transaction in the series of transactions; and

(b) may revoke the registration of the labour sponsored investment fund corporation in accordance with section 26 if the Minister has previously made an order referred to in clause (a) in respect of any investment made by the labour sponsored investment fund corporation.

Penalty, investment advisor

(13)  If a labour sponsored investment fund corporation has, by reason of a transaction or series of transactions, contravened a provision of this Act or been found by the Minister under subsection (12) to have contravened the spirit and intent of this Act, the Minister may assess a penalty against every person, other than an employee of the labour sponsored investment fund corporation, who acted on behalf of the labour sponsored investment fund corporation in identifying, investigating, structuring, negotiating the transaction or any transaction in the series of transactions or in administering the investment affairs of the labour sponsored investment fund corporation and who knew or ought to have known that the transaction or series of transactions contravened this Act or was contrary to the spirit and intent of this Act and the amount of any penalty assessed by the Minister shall be,

(a) 1.5 per cent of the amount paid by the labour sponsored investment fund corporation in the transaction or series of transactions, up to a maximum of $50,000 on a first contravention; or

(b) 3 per cent of the amount paid by the labour sponsored investment fund corporation in the transaction or series of transactions, up to a maximum of $100,000 for each subsequent contravention.

Fundamental principles

(14)  In determining whether an investment contravenes the spirit and intent of the Act, the Minister shall consider the factors that are, in his or her opinion, relevant, including but not limited to the following factors:

1. Whether the labour sponsored investment fund corporation provides direct financial, investment and managerial advice to small and medium-sized Ontario-owned and operated businesses, with the objective of supporting the growth of those businesses.

2. Whether the recipient business has unrestricted access to the capital invested for the operation and development of the business.

3. Whether a material portion of the economic value of the investment for the labour sponsored investment fund corporation is derived, directly or indirectly, from a business other than an eligible business.

4. If an investment has been made indirectly through a subsidiary of the labour sponsored investment fund corporation, whether the subsidiary made a reasonable attempt to invest in small or medium-sized Ontario businesses.

5. Whether a material portion of the investment proceeds were not used by the eligible business before the labour sponsored investment fund corporation disposed of its investment.

8.  Subsection 18.1 (5) of the Act, as re-enacted by the Statutes of Ontario, 2001, chapter 23, section 13 and amended by 2004, chapter 16, section 1, is repealed and the following substituted:

Limit on investment in listed companies

(5)  During 2004 and each subsequent calendar year, a labour sponsored investment fund corporation shall not make investments in eligible businesses that are listed companies to the extent that the cost of those investments exceeds 25 per cent of the total cost of all investments made in eligible businesses by the corporation in that calendar year or the previous calendar year, whichever is greater.

9.  The Act is amended by adding the following Part:

PART III.2
ONTARIO COMMERCIALIZATION
INVESTMENT FUNDS

Interpretation

Definitions

18.11  (1)  In this Part,

"eligible business" means a taxable Canadian corporation that meets the criteria described in subsection (2); ("entreprise admissible")

"eligible business activity" and "intellectual property" have the meanings assigned by subsection 18.2 (1); ("activité commerciale admissible" et "propriété intellectuelle")

"eligible investor" means an accredited investor as defined in Ontario Securities Commission Rule 45-501 entitled "Exempt Distributions", but does not include, unless otherwise prescribed,

(a) a corporation registered under Part III as a labour sponsored investment fund corporation,

(b) a corporation registered under Part III.1 as a community small business investment fund corporation,

(c) the Business Development Bank of Canada incorporated under the Business Development Bank of Canada Act (Canada),

(d) the government of Canada or of any jurisdiction, or any crown corporation, instrumentality or agency of a Canadian federal, provincial or territorial government,

(e) any Canadian municipality or any Canadian provincial or territorial capital city,

(f) any national, federal, state, provincial, territorial or municipal government of or in any foreign jurisdiction or any instrumentality or agency thereof,

(g) an individual who is not resident in Canada,

(h) a corporation or partnership that does not have a permanent establishment in Canada,

(i) an investor who is a prescribed person or who is a member of a prescribed class; ("investisseur admissible")

"eligible research institute" has the meaning assigned by subsection 43.9 (29) of the Corporations Tax Act; ("institut de recherche admissible")

"sponsor" means an eligible research institute that qualifies to apply for registration of a corporation or partnership as an Ontario commercialization investment fund under subsection 18.13 (1). ("commanditaire")

Eligible business

(2)  A taxable Canadian corporation must meet the following criteria in order to be an eligible business in relation to an Ontario commercialization investment fund:

1. At the time of initial investment by an Ontario commercialization investment fund, the corporation must be commencing activities as a new business and must be primarily engaged in or planning to be primarily engaged in one or more of the following activities:

i. the research, development and construction of a prototype,

ii. the development of a manufacturing process,

iii. the implementation of a marketing or distribution strategy for a product, or

iv. a similar activity that is in respect of a service.

2. At the time of initial investment by an Ontario commercialization investment fund, the corporation has a reasonable expectation of profit.

3. The corporation has a total revenue determined in accordance with generally accepted accounting principles of less than the prescribed amount or, if no amount is prescribed, $500,000 from the time of its incorporation until the time of the initial investment by an Ontario commercialization investment fund.

4. The corporation was formed to exploit intellectual property developed by individuals who, at the time of the initial investment by an Ontario commercialization investment fund or within three years before the time of initial investment, are faculty, staff or students of a sponsor of the Ontario commercialization investment fund.

5. During the period from January 1 of the year in which an initial or follow-on investment is made to the date of the particular investment, the corporation pays 50 per cent or more of its wages and salaries to employees whose ordinary place of employment is a permanent establishment of the corporation in Ontario.

6. At the time of an initial or follow-on investment, at least 50 per cent of the corporation's full-time employees are employed in respect of eligible business activities carried on by the corporation in Ontario.

7. At the time of initial investment by an Ontario commercialization investment fund, the value of the total tangible assets of the corporation, together with the total tangible assets of all related corporations and the total tangible assets of all partnerships in which the corporation or the related corporation is a member, does not exceed the prescribed amount or, if no amount is prescribed, $500,000.

8. The corporation was incorporated under the Business Corporations Act or the Canada Business Corporations Act.

New business

(3)  For the purposes of subsection (2), a new business may include a business located in an existing incubator facility that provides workspace and business support services.

Eligible investment

(4)  An investment made by an Ontario commercialization investment fund is an eligible investment for the purposes of this Part if,

(a) the investment is made before January 1, 2009 in a business that is an eligible business when the investment is made;

(b) the investment is,

(i) the purchase from the eligible business by the Ontario commercialization investment fund of shares issued by the eligible business in exchange for a consideration paid in money, or

(ii) the purchase of a warrant, option or right granted by the eligible business, in conjunction with the issue of a share that is an eligible investment, to acquire a share of the eligible business that would be an eligible investment if that share were issued at the time that the warrant, option or right was granted; and

(c) the investment is not used or intended to be used by the eligible business for the purpose of,

(i) relending,

(ii) investment in land, except land that is incidental and ancillary to the eligible business activity or activities in which the eligible business is primarily engaged,

(iii) reinvestment or the acquisition of any securities of any person,

(iv) subject to subsection (5) or (6), financing the purchase or sale of goods or services provided to the eligible business by or through a shareholder of or partner in the Ontario commercialization investment fund or a person related to the shareholder or partner,

(v) the payment of dividends,

(vi) the return of capital to a shareholder of the eligible business or the payment of the principal amount of outstanding liabilities owing to a shareholder of the eligible business by the eligible business,

(vii) the payment of the principal amount of outstanding liabilities owing to shareholders of the Ontario commercialization investment fund or to persons related to its shareholders, or to partners of the Ontario commercialization investment fund or to persons related to its partners,

(viii) carrying on a business primarily outside Ontario, or

(ix) any prescribed purpose or use.

Exception

(5)  Subclause (4) (c) (iv) does not apply with respect to the purchase of goods or services from a shareholder or partner who is a sponsor of the corporation or from a person who is related to a shareholder or partner.

Same

(6)  Any amounts paid on the purchase of goods and services referred to in subclause (4) (c) (iv) are deemed not to include,

(a) banking fees and other amounts normally charged by a bank to its customers for providing services in the ordinary course of the bank's business; and

(b) reasonable salaries and wages paid to employees.

Meaning of "related"

(7)  For the purposes of this Part,

(a) two or more entities are related if they would be related under section 251 of the Income Tax Act (Canada); and

(b) eligible investments made by an Ontario commercialization investment fund are related if the eligible businesses in which the investments are made are related.

Policy intent

18.12  The policy intent of this Part is to,

(a) raise the profile of venture capital support for commercialization at Ontario-based research institutes;

(b) encourage research institutes to partner with accredited investors in commercializing research developed by the faculty, staff, students and alumni of research institutes; and

(c) encourage the investment of capital to support the growth and development of new entrepreneurial firms created as a result of research developed through research institutes.

Application for registration

18.13  (1)  An eligible research institute may, as a sponsor, apply for registration under this Part of a corporation or a partnership as an Ontario commercialization investment fund if,

(a) the corporation or partnership has a permanent establishment in Ontario; and

(b) the eligible research institute demonstrates that it will be actively involved in the business and affairs of the corporation or partnership.

One or more sponsors permitted

(2)  An application for registration of a corporation or partnership under this Part may be made by one or more eligible research institutes as sponsors and an eligible research institute may apply to the Minister in the form and manner specified by the Minister to be included as a sponsor of a corporation or partnership that is already registered under this Part.

Institute may sponsor more than one corporation

(3)  An eligible research institute may act as a sponsor of more than one corporation or partnership.

Proposal

(4)  An application for registration under this Part shall be made by filing with the Minister a proposal in duplicate setting out the following information:

1. The names of the corporation or partnership and the sponsor or sponsors.

2. The location of the registered office and all permanent establishments in Ontario of the corporation or partnership and the sponsor or sponsors.

3. In the case of a corporation, an investment plan for the corporation specifying,

i. the rights and privileges attached to each class or series of shares of the corporation, the amount of the stated capital account of each class or series of shares issued and to be issued and the total amount of equity capital for which the shares were or will be issued,

ii. the amounts and kinds of debt obligation, if any, issued by the corporation,

iii. any restrictions on ownership and voting rights of the shares of the corporation,

iv. the terms and conditions for redemption of shares,

v. the proposed number of shareholders of the corporation,

vi. details of the corporation's proposed investment objectives and policies, and

vii. any other matters prescribed to be set out in the investment plan.

4. In the case of a partnership, an investment plan for the partnership specifying,

i. the method of income or loss allocation to each partner,

ii. the capital contribution of each partner,

iii. the roles and responsibilities of each partner,

iv. how the partnership can be dissolved,

v. the amounts and kinds of debt obligation, if any, issued or payable by the partnership,

vi. the proposed number of partners in the partnership,

vii. details of the partnership's proposed investment objectives and policies, and

viii. any other matters prescribed to be set out in the investment plan.

5. A description of the active involvement that the sponsor will have in the conduct of the business and affairs of the corporation or partnership.

6. In the case of a corporation,

i. the number of directors of the corporation and the name in full and the residence address of each director, and

ii. the names in full of the officers of the corporation and the residence address of each of them.

7. In the case of a partnership, the number of partners in the partnership and the name in full and the address of each partner.

8. Any other matter required by the regulations to be set out in the proposal.

Additional information

(5)  A proposal shall be accompanied by,

(a) in the case of a corporation,

(i) a certified copy of the articles of the corporation, and

(ii) a true copy of all shareholders' agreements, partnership agreements and proposed agreements relating to the corporation to which the corporation is a party or of which an officer or director of the corporation or a sponsor, after making reasonable inquiry, has knowledge;

(b) in the case of a partnership,

(i) a certified copy of all partnership agreements for the partnership, and

(ii) a true copy of all proposed agreements relating to the partnership to which the partnership is a party or of which a partner of the partnership or a sponsor, after making reasonable inquiry, has knowledge; and

(c) any other prescribed material.

Certificate

(6)  The proposal and a certificate certifying that the information contained in the proposal is complete and accurate must be signed on behalf of the corporation or partnership by two officers or one director and one officer of the corporation or by a designated partner of the partnership, as the case may be.

Signature by sponsor

(7)  The proposal must be signed on behalf of each sponsor by the president or chief executive officer of the sponsor or by an individual in an equivalent position.

Corporate qualifications

(8)  No corporation may be registered under this Part unless,

(a) the corporation was incorporated under the Business Corporations Act or the Canada Business Corporations Act and is in compliance with that Act and the Securities Act;

(b) the corporation has never previously carried on business other than the business related to obtaining registration under this Act;

(c) the articles of the corporation specify that each shareholder must be an eligible investor and must invest at least $25,000 in shares of the corporation;

(d) the corporation has demonstrated active involvement by the sponsor to the satisfaction of the Minister; and

(e) the corporation meets all other prescribed conditions.

Partnership qualifications

(9)  No partnership may be registered under this Part unless,

(a) the partnership is operating in compliance with the laws of Ontario relating to partnerships and the Securities Act;

(b) the partnership has never previously carried on business other than the business related to obtaining registration under this Act;

(c) the partnership agreement specifies that each partner must be an eligible investor and must invest at least $25,000 in the partnership;

(d) the partnership has demonstrated active involvement by the sponsor to the satisfaction of the Minister; and

(e) the partnership meets all other prescribed conditions.

Registration

Entitlement to registration

18.14  (1)  A corporation or a partnership is entitled to be registered under this Part by the Minister if all of the following requirements are met:

1. The sponsor or sponsors of the corporation or partnership apply for registration under this Part and file the required documents before January 1, 2007.

2. The requirements of section 18.13 are satisfied.

Refusal

(2)  Subject to section 31, the Minister may refuse to register a corporation or a partnership if, in the Minister's opinion, the corporation or the partnership is not entitled to be registered.

Same

(3)  Subject to section 31, the Minister may refuse to register a corporation or a partnership if, in the Minister's opinion, the proposed investments or the actions of the corporation or the partnership, its officers, directors, shareholders, partners, or of a sponsor, do not comply with the policy intent of this Part.

Issuance of certificate of registration

(4)  On registration of a corporation or a partnership under this Part, the Minister shall,

(a) endorse on each duplicate of the proposal "Registered/Agréée" and the day, month and year of registration;

(b) file one of the duplicates in the Minister's office;

(c) place the name of the corporation or partnership in the register of investment corporations as a registered Ontario commercialization investment fund; and

(d) issue to the corporation or partnership a certificate of registration to which the Minister shall affix the other duplicate proposal.

Application for investment certificate and determination of grant

18.15  (1)  An Ontario commercialization investment fund may apply to a person designated by the Minister of Economic Development and Trade or by the Minister for a certificate,

(a) indicating that an investment that has been made or is proposed to be made by the fund is an eligible investment; and

(b) specifying the amount of an Ontario commercialization investment fund grant that would be available in respect of the investment.

Same

(2)  An application under subsection (1) in respect of an investment is required for a follow-on investment in the same eligible business, even if a certificate has been obtained under this section for the initial investment.

Additional information

(3)  An Ontario commercialization investment fund that applies for a certificate shall provide to the designated person the information specified by the person for the purposes of determining if the investment or proposed investment is an eligible investment.

Certificate

(4)  If the designated person is satisfied that the business in which the investment by the Ontario commercialization investment fund has been made or is proposed to be made is an eligible business and that the investment will be an eligible investment, the designated person shall issue to the fund a certificate,

(a) stating that the investment or proposed investment is an eligible investment for the purposes of this Part; and

(b) specifying the amount of an Ontario commercialization investment fund grant, if any, that would be available in respect of the investment.

Amount of the grant

(5)  Subject to subsections (6), (7) and (8), the amount of a grant under this Part is 30 per cent of the amount invested by an Ontario commercialization investment fund in an eligible investment.

When grant is available

(6)  No grant is available to an Ontario commercialization investment fund unless it has made at least three eligible investments, each of which is an investment in an eligible business that is not related to either of the other two eligible businesses.

Maximum grant for investment in eligible business

(7)  The total amount of grants available to one or more Ontario commercialization investment funds under this Part in respect of eligible investments in a particular eligible business and all businesses related to the eligible business is,

(a) $225,000 if the Minister has not specified an amount under clause (b); or

(b) such amount, if any, in excess of $225,000 as may be specified by the Minister, if the Minister is satisfied that an increase in the total amount of grants under this Part is justified to better meet the objectives of this Part.

Maximum grants under this Part

(8)  The maximum amount of grants available under this Part is $36 million and no additional grant shall be allowed under this Part after the total amount of grants allowed under this Part reaches $36 million.

Application for Ontario commercialization investment fund grant

18.16  (1)  An Ontario commercialization investment fund that meets the conditions described in section 18.15 may, not later than March 31 of the year following the year in which the fund satisfied the conditions, apply for its first Ontario commercialization investment fund grant in respect of all eligible investments made by the end of the year in which the conditions were satisfied.

Application for subsequent grants

(2)  An Ontario commercialization investment fund that has met the conditions described in section 18.15 before the beginning of a year and has previously applied for a grant under subsection (1) may apply during the year for an Ontario commercialization investment fund grant in respect of eligible investments for which it has not previously applied for a grant under subsection (1) or this subsection.

Time for applying

(3)  An application under subsection (2) for a grant in respect of an eligible investment shall be made not later than March 31 of the year following the year in which the fund made the eligible investment.

Form and manner of application

(4)  An application under subsection (1) or (2) must be made in the form and manner approved by the Minister and shall contain such information as the Minister may require to verify the amount of the investment and to confirm that the investment was an eligible investment at the time it was made.

Grant payment

(5)  Subject to subsections (6) and 18.15 (6), (7) and (8), the Minister shall pay Ontario commercialization investment fund grants to Ontario commercialization investment funds in the amounts determined under subsection 18.15 (5).

No grant payable

(6)  The Minister shall not pay an Ontario commercialization investment fund grant to an Ontario commercialization investment fund if,

(a) the fund is not in compliance with this Act; or

(b) the Minister is of the opinion that the fund is conducting its business and affairs in a manner that is contrary to the policy intent of this Part, whether or not there has been a contravention of this Act or the regulations.

Demand for repayment of grant

18.17  If the Minister determines that an Ontario commercialization investment fund received a grant to which it was not entitled or received a grant in an amount in excess of the amount to which it was entitled, the Minister shall demand repayment of the grant or excess amount of the grant in accordance with subsection 30 (1).

Annual report to the Minister

18.18  Every Ontario commercialization investment fund shall provide annually to the Minister, in a form and in a manner approved by the Minister, such information with respect to its eligible investments as the Minister may require.

10.  Section 19 of the Act, as amended by the Statutes of Ontario, 1997, chapter 43, Schedule C, sections 11 and 23, 1998, chapter 34, section 19, 2002, chapter 8, Schedule I, section 6 and 2004, chapter 16, section 1, is amended by adding the following subsection:

No other restrictions

(2.1)  Subsection (1) does not apply to limit the investments that can be made or maintained by an Ontario commercialization investment fund.

11.  (1)  Subsection 20 (2) of the Act, as re-enacted by the Statutes of Ontario, 1999, chapter 9, section 61 and amended by 2004, chapter 16, section 1, is repealed and the following substituted:

Labour sponsored investment fund corporation

(2)  A labour sponsored investment fund corporation (the "corporation") shall not invest or maintain an investment in a business that is or was at any time an eligible business for the purposes of Part III if the aggregate of all investments made by the corporation in the business and any related business exceeds $15 million.

(2)  Subsection 20 (3) of the Act, as amended by the Statutes of Ontario, 1999, chapter 9, section 61 and 2004, chapter 16, section 1, is repealed.

12.  Section 24 of the Act, as amended by the Statutes of Ontario, 1997, chapter 43, Schedule C, sections 13 and 23 and 2004, chapter 16, section 1, is amended by adding the following subsection:

Exception

(1.1)  Subsection (1) does not apply in respect of an investment corporation that is an Ontario commercialization investment fund corporation.

13.  (1)  Subsection 25 (3) of the Act, as re-enacted by the Statutes of Ontario, 2000, chapter 42, section 7 and amended by 2004, chapter 16, section 1, is repealed and the following substituted:

Issuance of tax credit certificates

(3)  Subject to subsection (11), a labour sponsored investment fund corporation shall issue a tax credit certificate on behalf of the Minister to each eligible investor who has subscribed for a Class A share of the corporation during the calendar year or within 60 days after the end of the calendar year in respect of an investment corporation tax credit to be claimed by the eligible investor in respect of that share under the Income Tax Act.

Form of certificate

(3.1)  A labour sponsored investment fund corporation shall issue a tax credit certificate in a form approved by the Minister and must indicate in the certificate the taxation year in respect of which the tax credit may be claimed.

(2)  Subsection 25 (5) of the Act, as amended by the Statutes of Ontario, 2004, chapter 16, section 1, is amended by striking out "subsection (1) or (3)" and substituting "subsection (1)".

(3)  Subsection 25 (7) of the Act, as amended by the Statutes of Ontario, 1997, chapter 43, Schedule C, section 23, 2002, chapter 22, section 26 and 2004, chapter 16, section 1, is amended by striking out the portion before clause (a) and substituting the following:

Qualifications

(7)  The Minister or a labour sponsored investment fund corporation, as applicable, shall not issue a tax credit certificate under this section unless the Minister or the labour sponsored investment fund corporation, as the case may be, is satisfied that,

. . . . .

(4)  Subclause 25 (7) (b) (i) of the Act, as amended by the Statutes of Ontario, 1997, chapter 43, Schedule C, section 23, 2002, chapter 22, section 26 and 2004, chapter 16, section 1, is repealed and the following substituted:

(i) to claim against tax otherwise payable a tax credit under the Income Tax Act, the Income Tax Act (Canada) or the Corporations Tax Act, other than a labour sponsored investment fund corporation tax credit under the Income Tax Act or section 127.4 of the Income Tax Act (Canada),

(5)  Subclause 25 (7) (b) (ii) of the Act, as amended by the Statutes of Ontario, 2004, chapter 16, section 1, is repealed and the following substituted:

(ii) to claim a deduction from income under the Income Tax Act, the Income Tax Act (Canada) or the Corporations Tax Act, or

(6)  Clause 25 (7) (c) of the Act, as amended by the Statutes of Ontario, 2004, chapter 16, section 1, is repealed and the following substituted:

(c) no tax credit has been previously allowed under the Income Tax Act or the Corporations Tax Act in respect of the shares to which the tax credit certificate relates;

(7)  Subsection 25 (8) of the Act, as amended by the Statutes of Ontario, 1997, chapter 43, Schedule C, section 23 and 2004, chapter 16, section 1, is amended by striking out "subsection (1) or (3)" in the portion before clause (a) and substituting "subsection (1)".

(8)  Subsection 25 (9) of the Act, as amended by the Statutes of Ontario, 1997, chapter 43, Schedule C, section 23 and 2004, chapter 16, section 1, is repealed and the following substituted:

Agent

(9)  The Minister may enter into an arrangement with an employee ownership labour sponsored venture capital corporation or a community small business investment fund corporation upon such terms and conditions as the Minister considers advisable to authorize the corporation as agent for the Minister to issue tax credit certificates under this section on behalf of the Minister.

Minister may establish terms and conditions

(10)  The Minister shall establish, and a labour sponsored investment fund corporation shall comply with, such terms and conditions as the Minister considers necessary relating to the issuance by the labour sponsored investment fund corporation of tax credit certificates under subsection (3) on behalf of the Minister.

Order to stop issuing certificates

(11)  The Minister shall order the labour sponsored investment fund corporation to stop issuing tax credit certificates until further notice if the Minister is of the opinion,

(a) that the labour sponsored investment fund corporation has contravened subsection (3.1) or (7) or has failed to comply with a term or condition established under subsection (10); or

(b) that the corporation or its directors, officers or shareholders are conducting the business or affairs of the labour sponsored investment fund corporation in a manner that is contrary to the spirit and intent of this Act, whether or not there has been a contravention of this Act or the regulations.

14.  (1)  Subsection 25.1 (4) of the Act, as re-enacted by the Statutes of Ontario, 1996, chapter 29, section 13 and amended by 2004, chapter 16, section 1, is repealed and the following substituted:

Order to stop issuing certificates

(4)  If the Minister is of the opinion that a labour sponsored investment fund corporation is not in compliance with section 17 or 18.1 at any particular time, the Minister may order the corporation to stop issuing tax credit certificates in respect of Class A shares issued by the corporation after the date of the order until the corporation provides proof to the satisfaction of the Minister that the corporation is in compliance with sections 17 and 18.1.

(2)  Subsection 25.1 (5) of the Act, as re-enacted by the Statutes of Ontario, 1999, chapter 9, section 64 and amended by 2004, chapter 16, section 1, is repealed and the following substituted:

Penalty

(5)  If a corporation is not in compliance with section 17 or 18.1 or is considered under clause (3) (a) not to be in compliance with either of those sections, the Minister may order the corporation to pay to the Minister a penalty in an amount equal to,

(a) 30 per cent of the equity capital received on the issue of Class A shares by the corporation during the time of the non-compliance, if the corporation is not a research oriented investment fund; or

(b) 40 per cent of the equity capital received on the issue of Class A shares by the corporation during the time of the non-compliance, if the corporation is a research oriented investment fund.

15.  (1)  Subclause 26 (1) (c) (ii) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 43, Schedule C, section 16 and amended by 2002, chapter 22, section 27 and 2004, chapter 16, section 1, is amended by striking out "Minister of Enterprise, Opportunity and Innovation" and substituting "Minister of Economic Development and Trade".

(2)  Clause 26 (1) (e) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 43, Schedule C, section 16 and amended by 2004, chapter 16, section 1, is repealed and the following substituted:

(e) the Minister is of the opinion that the investment corporation, its officers, directors or shareholders, or the employee organization, community sponsor or sponsor connected with it, are conducting their business or affairs in a manner that is contrary to the spirit and intent of this Act or for the purpose of enabling a person to obtain a tax credit or investment credit or grant to which the person would not otherwise be entitled; or

16.  (1)  Subsection 27 (2) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule C, section 17 and amended by 1999, chapter 9, section 66 and 2004, chapter 16, section 1, is repealed and the following substituted:

Repayment of tax credits

(2)  A labour sponsored investment fund corporation whose registration is revoked by the Minister shall immediately pay to the Minister an amount of money equal to the lesser of,

(a) 15 per cent of the equity capital received by the corporation in respect of all Class A shares of the corporation then outstanding less than eight years immediately preceding the date of revocation, surrender of registration, winding-up or dissolution; and

(b) the total amount that would be determined for the purposes of clause (a) if the equity capital received by the labour sponsored investment fund corporation on the issue of each of the shares had been an amount equal to the fair market value of the shares at the date of the revocation, surrender of registration, winding-up or dissolution, and not the amount of equity capital actually received by the corporation.

(2)  Section 27 of the Act, as amended by the Statutes of Ontario, 1994, chapter 17, section 90, 1997, chapter 43, Schedule C, sections 17 and 23, 1999, chapter 9, section 66 and 2004, chapter 16, section 1, is amended by adding the following subsection:

Exception

(2.2)  Subsection (2.1) does not apply if the request to surrender registration or the proposal to wind up or dissolve is related to a purchase or sale referred to in section 27.1.

(3)  Section 27 of the Act, as amended by the Statutes of Ontario, 1994, chapter 17, section 90, 1997, chapter 43, Schedule C, sections 17 and 23, 1999, chapter 9, section 66 and 2004, chapter 16, section 1, is amended by adding the following subsection:

Repayment of grants, registration revoked

(3)  An Ontario commercialization investment fund whose registration is revoked by the Minister shall immediately pay to the Minister an amount of money equal to the total amount of all grants under Part III.2 received by the fund in respect of eligible investments made within the 48 months immediately preceding the date of revocation of registration.

(4)  Section 27 of the Act, as amended by the Statutes of Ontario, 1994, chapter 17, section 90, 1997, chapter 43, Schedule C, sections 17 and 23, 1999, chapter 9, section 66 and 2004, chapter 16, section 1, is amended by adding the following subsection:

Set-off

(9)  If an Ontario commercialization investment fund that is entitled to a grant under Part III.2 is liable or is about to become liable to make a payment to the Crown in right of Ontario, the Minister may apply all or part of the amount of the grant to that liability instead of paying the grant to the fund.

17.  (1)  Section 27.1 of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 67 and amended by 2002, chapter 22, section 28 and 2004, chapter 16, section 1, is repealed and the following substituted:

Notice of business combination

27.1  (1)  A labour sponsored investment fund corporation that has issued Class A shares shall notify the Minister in writing if it proposes to,

(a) amalgamate with another corporation;

(b) enter into an arrangement for the purchase of substantially all of the assets of another labour sponsored investment fund corporation; or

(c) enter into an arrangement for the sale to another labour sponsored investment fund corporation of substantially all of its assets.

Same

(2)  The notice must be given at least 30 days before the proposed amalgamation, purchase or sale and must be accompanied by such information and documents as the Minister may request.

Effect of amalgamation

(3)  The following rules apply for the purposes of this Act on an amalgamation of a labour sponsored investment fund corporation with another corporation:

1. The new corporation shall be deemed to be the same corporation as, and a continuation of, each predecessor corporation.

2. The new corporation shall be deemed to have been registered under Part III on the earliest date on which any of the predecessor corporations was registered under Part III.

3. The new corporation shall be deemed to have issued all Class A shares issued by a predecessor corporation for the amount of equity capital received by the predecessor corporation on the issue of those shares.

4. If a predecessor corporation was authorized to issue a class of shares to which subclause 14 (1) (c) (iii) applies, the new corporation shall be deemed to have received the Minister's approval to issue substantially similar shares at the time of the amalgamation.

5. Each of the new shares issued by the new corporation on the amalgamation in replacement of shares that were issued by a predecessor corporation shall be deemed to have been issued at the time that the predecessor corporation issued the replaced shares.

6. The new corporation shall be deemed to have made all the investments made by the predecessor corporations,

i. on the same date as the predecessor corporations made the investments, and

ii. at the same historic cost used by the predecessor corporations.

7. An eligible investment of a predecessor corporation that is in a research business under subsection 16.1 (2) or in a listed company or small business as defined in subsection 18.1 (1) shall be deemed to be an eligible investment of the new corporation of the same type.

Effect of purchase and sale

(4)  The following rules apply for the purposes of this Act on the purchase of all or substantially all of the assets of a labour sponsored investment fund corporation by another labour sponsored investment fund corporation:

1. The vendor shall not issue any Class A shares after the purchase.

2. The vendor shall surrender its registration within a reasonable amount of time after the purchase.

3. Each new share issued by the purchaser and received by a shareholder of the vendor in replacement of a share that was issued by the vendor shall be deemed to have been issued at the time that the vendor issued the replaced share.

4. If the vendor was authorized to issue a class of shares other than Class A shares and if the rights, privileges, restrictions and conditions attached to those shares were approved by the board of directors of the vendor and by the Ministry, the purchaser shall be deemed to have received the Ministry's approval to issue substantially similar shares as replacement shares.

5. The equity capital received by the purchaser on the issue of a Class A share in exchange for assets of the vendor shall be deemed to be the price of the assets at the time of the purchase, as negotiated between the purchaser and vendor, divided by the number of Class A shares issued in respect of the purchase.

6. The equity capital paid by the shareholder on the issue of a Class A share of the purchaser in exchange for a Class A share issued by the vendor shall be deemed to be the price of the Class A share of the purchaser at the time of the purchase.

7. Each investment of the vendor purchased by the purchaser that is an eligible investment at the time of the purchase shall be deemed to be an eligible investment of the purchaser.

8. An eligible investment of the vendor that is in a research business under subsection 16.1 (2) or in a listed company or small business as defined in subsection 18.1 (1) shall be deemed to be an eligible investment of the purchaser of the same type.

9. An investment by the vendor in an investment corporation registered under Part III.1 that is purchased by the purchaser shall be treated as if it had originally been made by the purchaser.

10. The cost of an eligible investment purchased by the purchaser shall be deemed to be the price of the eligible investment at the time of purchase, as negotiated between the purchaser and vendor.

Effect of certain types of non-compliance

(5)  The rules set out in subsection (6) apply,

(a) if, immediately after the amalgamation, the articles of the new corporation do not meet the requirements of clause 14 (1) (c), (d) or (f);

(b) if the new corporation does not comply with subsection 13 (1);

(c) if, immediately before the amalgamation, the registration of a predecessor corporation under this Act was revoked; or

(d) if the new corporation distributed any property other than its Class A shares to shareholders in exchange for Class A shares of a predecessor corporation.

Same

(6)  Subject to subsection (7), the following rules apply in any of the circumstances described in subsection (5):

1. The new corporation shall be deemed to have surrendered its registration under this Act immediately after the amalgamation.

2. The new corporation shall promptly pay to the Minister the amount of money that each predecessor corporation would have been required to pay under subsection 27 (2.1) if it had surrendered its registration under this Act immediately before the amalgamation.

Exception

(7)  The Minister may exempt a new corporation or a labour sponsored investment fund corporation from any rule in this section upon such conditions as he or she considers appropriate.

Definitions

(8)  In this section,

"new corporation" means the corporation that results from the amalgamation of a predecessor corporation and one or more other corporations; ("nouvelle société")

"predecessor corporation" means a corporation that is amalgamated and that is or was a labour sponsored investment fund corporation. ("société remplacée")

(2)  Section 27.1 of the Act, as re-enacted by subsection (1), is amended by adding the following subsection:

Regulations

(9)  The Minister may make regulations prescribing rules that apply,

(a) if an Ontario commercialization investment fund winds up or is involved in a corporate reorganization;

(b) if two or more Ontario commercialization investment funds are involved in a business combination;

(c) if the assets of an Ontario commercialization investment fund are purchased by another person.

18.  The Act is amended by adding the following section:

Disposition of eligible investment, repayment of grant

28.2  (1)  An Ontario commercialization investment fund that disposes of an eligible investment in respect of which a grant under section 18.16 was obtained shall pay to the Minister not later than the 31st day after the date of disposition an amount of money equal to 30 per cent of the lesser of,

(a) the original cost of the investment to the fund; and

(b) the fair market value of the investment at the time of the disposition.

Exception

(2)  Subsection (1) does not apply if the fund disposes of the eligible investment more than 365 days after the day on which it acquired the eligible investment.

Limit on grant recapture

(3)  The amount of money that an Ontario commercialization investment fund shall pay to the Minister under subsection (1) in respect of the disposition of an eligible investment shall not exceed the total of all Ontario commercialization investment fund grants that the fund received in the year of disposition or in any preceding year.

19.  (1)  Subsection 31 (1) of the Act, as amended by the Statutes of Ontario, 1997, chapter 43, Schedule C, sections 19 and 23, 1999, chapter 9, section 70 and 2004, chapter 16, section 1, is amended by striking out "or" at the end of clause (d) and by adding the following clauses:

(f) to make an order that a particular investment is not an eligible investment;

(g) to impose a penalty under subsection 18 (13);

(h) to order a labour sponsored investment fund corporation to cease issuing tax credit certificates; or

(i) to refuse to pay a grant under section 18.16.

(2)  Subsection 31 (4) of the Act, as amended by the Statutes of Ontario, 1997, chapter 19, section 11 and 2004, chapter 16, section 1, is repealed and the following substituted:

Notice of objection

(4)  A person or group served with a notice of proposal under subsection (1) or required to pay a tax under section 28 or 28.1 may serve on the Minister a notice of objection in duplicate in the form approved by the Minister setting out the reasons for the objection and all relevant facts.

Service

(4.1)  A notice of objection must be served on the Minister within 60 days after,

(a) the day of mailing of the proposal;

(b) the day when the Minister is deemed to have assessed the tax under section 28 or 28.1; or

(c) the day upon which the Minister has been deemed under subsection (3) to have refused registration.

Commencement

20.  (1)  Subject to subsections (2), (3) and (4), this Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

Same

(2)  Section 5 and subsections 16 (2) and 17 (1) shall be deemed to have come into force on May 18, 2004.

Same

(3)  Sections 8 and 11 shall be deemed to have come into force on January 1, 2004.

Same

(4)  Subsection 19 (2) shall be deemed to have come into force on November 2, 2004.

SCHEDULE 8
AMENDMENTS TO THE CO-OPERATIVE CORPORATIONS ACT

1.  (1)  The definition of "security" in subsection 1 (1) of the Co-operative Corporations Act is repealed and the following substituted:

"security" means any share of any class or series of shares or any debt obligation of a corporation; ("valeur mobilière")

(2)  Subsection 1 (1) of the Act, as amended by the Statutes of Ontario, 1992, chapter 19, section 1, 1994, chapter 17, section 1, 1997, chapter 28, section 34, 1999, chapter 6, section 14 and 2001, chapter 8, section 6, is amended by adding the following definition:

"series", in relation to shares, means a division of a class of shares; ("série")

2.  Clause 5 (3) (a) of the Act, as amended by the Statutes of Ontario, 2001, chapter 8, section 7, is amended by striking out "and" at the end of subclause (iv), by adding "and" at the end of subclause (v) and by adding the following subclause:

(vi) the authority of the directors to fix the number of shares in, and to determine the designations, preferences, rights, conditions, restrictions, limitations or prohibitions attaching to, a class of shares that may be issued in series;

3.  (1)  Subsection 25 (1) of the Act is amended by striking out "shares of more than one class" and substituting "shares of more than one class or series".

(2)  Subsection 25 (2) of the Act, as re-enacted by the Statutes of Ontario, 2001, chapter 8, section 10, is amended by striking out "class of shares" and substituting "class or series of shares".

(3)  Subsection 25 (3) of the Act is amended by striking out "the number of shares of each class" and substituting "the number of shares of each class or series".

4.  The Act is amended by adding the following section:

Preference shares in series

27.1  (1)  The articles, subject to such conditions and restrictions as may be prescribed and subject to the limitations set out in the articles,

(a) may authorize the issue of any class of preference shares in one or more series and may fix the number of shares in, and determine the designations, preferences, rights, conditions, restrictions, limitations and prohibitions attaching to the shares of, each series; and

(b) may, where the articles authorize the issue of any class of preference shares in one or more series, authorize the directors to fix the number of shares in, and to determine the designations, preferences, rights, conditions, restrictions, limitations and prohibitions attaching to the shares of each series.

Proportionate abatement

(2)  If any amount,

(a) of cumulative dividends, whether or not declared, or declared non-cumulative dividends; or

(b) payable on return of capital in the event of the liquidation, dissolution or winding-up of a co-operative,

in respect of shares of a series is not paid in full, the shares of the series shall participate rateably with the shares of all other series of the same class in respect of,

(c) all accumulated cumulative dividends, whether or not declared, and all declared non-cumulative dividends; or

(d) all amounts payable on return of capital in the event of the liquidation, dissolution or winding-up of the co-operative,

as the case may be.

No priority of shares of same class

(3)  No preferences, rights, conditions, restrictions, limitations or prohibitions attached to a series of preference shares authorized under this section shall confer upon the shares of a series a priority in respect of,

(a) dividends; or

(b) return of capital in the event of the liquidation, dissolution or winding-up of the co-operative,

over the shares of any other series of the same class.

Articles designating special shares

(4)  Where, in respect of a series of preference shares, the directors exercise the authority conferred on them, before the issue of shares of that series, the directors shall file with the Minister articles of amendment, in a form approved by the Superintendent, designating the series.

Certificate of amendment

(5)  Section 154 applies with respect to the articles of amendment referred to in subsection (4).

5.  Section 28 of the Act is repealed and the following substituted:

Equality of shares of a class

28.  Each share of a class shall be the same in all respects as every other share of that class, except as otherwise permitted by section 27.1.

6.  Section 29 of the Act is amended by striking out "the number of issued shares of each class" and substituting "the number of issued shares of each class or series".

7.  Section 30 of the Act is repealed and the following substituted:

Cancellation of par share

30.  (1)  If an issued share of a class or series is cancelled, the issued capital is decreased by an amount equal to the par value of the shares of that class or series.

Cancellation of fractions of shares

(2)  If a fraction of an issued share of a class or series is cancelled, the issued capital is decreased by an amount that bears the same proportion to the amount determined under subsection (1) that the fraction bears to a whole share of that class or series.

8.  (1)  Subsection 30.1 (1) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 17, section 7, is repealed and the following substituted:

Purchase and redemption of shares

(1)  A co-operative may purchase or redeem its shares only in accordance with this Act and the regulations and in accordance with its articles.

(2)  Clause 30.1 (3) (a) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 17, section 7, is amended by striking out "shares of a class of preference shares" and substituting "shares of a class or series of preference shares".

9.  Subsection 31 (1) of the Act is repealed and the following substituted:

Redemption of shares of a class of preference shares

(1)  If the articles provide that the shares of a class of preference shares are redeemable without the consent of the holders of the shares and if only part of the preference shares are to be redeemed, the shares to be redeemed shall be selected,

(a) by lot in the manner determined by the board of directors;

(b) as nearly as may be in proportion to the number of preference shares of the class that are registered in the name of each holder of shares of that class;

(c) in such other manner as the board of directors determines with the consent of the holders of preference shares of the class, obtained in the manner set out in subsection (3); or

(d) in such manner as may be authorized by regulation,

but the articles may confine the manner of selection to one or more of the methods referred to in clause (a), (b), (c) or (d).

Redemption of shares of a series of preference shares

(1.1)  If the articles provide that the shares of a series of preference shares are redeemable without the consent of the holders of the shares and if only part of the series of preference shares are to be redeemed, the shares to be redeemed shall be selected in such manner as may be prescribed by regulation.

10.  Subsection 34 (1) of the Act, as amended by the Statutes of Ontario, 1994, chapter 17, section 11 and 1997, chapter 28, section 35, is repealed and the following substituted:

Offering statement

(1)  No co-operative or person shall sell, dispose of or accept directly or indirectly any consideration for securities of the co-operative where the co-operative has more than the prescribed number of security holders, or where the sale or disposition of or acceptance of consideration for the securities would have the effect of increasing the number of security holders in the co-operative to more than the prescribed number, unless the co-operative has filed with the Superintendent an offering statement and has obtained a receipt for it.

11.  Clause 46 (1) (d) of the Act is repealed and the following substituted:

(d) if the certificate represents shares, the number and the class of shares, and the designation of any series, represented by the certificate and the par value of the shares;

12.  (1)  Subsection 47 (1) of the Act is repealed and the following substituted:

Contents of preference share certificate

(1)  A share certificate issued for a share of a class or series of preference shares shall,

(a) legibly state on the certificate or have attached to it a legible statement setting out,

(i) the preferences, rights, conditions, restrictions, limitations and prohibitions attaching to that class or to that series, and

(ii) the authority of the directors to fix the preferences, rights, conditions, restrictions, limitations or prohibitions attaching to subsequent series, if applicable; or

(b) legibly state on the certificate that there are preferences, rights, conditions, restrictions, limitations or prohibitions attaching to that class or series and that the co-operative will furnish to a shareholder, on demand and without charge, a full copy of the text of,

(i) the preferences, rights, conditions, restrictions, limitations and prohibitions attached to that share and to each class authorized to be issued and to each series in so far as the same have been fixed by the directors, and

(ii) the authority of the directors to fix the preferences, rights, conditions, restrictions, limitations and prohibitions of subsequent series, if applicable.

(2)  Subsection 47 (3) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 17, section 13, is amended by striking out "a class of preference shares" in the portion before clause (a) and substituting "a class or series of preference shares".

13.  (1)  Subsection 56 (2) of the Act is amended by striking out "shall mail a written notice" and substituting "shall send a written notice".

(2)  Subsection 56 (3) of the Act is amended by striking out "within thirty days from the date of mailing of the notice referred to in subsection (2)" in the portion before clause (a) and substituting "within 30 days after the date on which the notice is sent".

14.  Subsection 66 (5) of the Act is amended by striking out "seven or more days before the mailing of the notice of the meeting" and substituting "seven or more days before notice of the meeting is sent".

15.  Clause 75 (1) (a) of the Act is amended by striking out "by sending the notice by prepaid mail" and substituting "by sending the notice".

16.  Subsection 95 (2) of the Act is amended by striking out "by sending the notice by prepaid mail" and substituting "by sending the notice".

17.  Section 110 of the Act is repealed and the following substituted:

Indemnification of directors, officers, etc.

Definition of entity

110.  (1)  In this section,

"entity" means a corporation, a trust, a partnership, a fund or an unincorporated organization.

Conditions for indemnification

(2)  A co-operative may indemnify a director or officer of the co-operative, a former director or officer of the
co-operative or a person who acts or acted at the co-operative's request as a director or officer or a person acting in a similar capacity, of another entity, and his or her heirs and legal representatives, against all costs, charges and expenses, including an amount paid to settle an action or satisfy a judgment reasonably incurred by him or her in respect of any civil, criminal or administrative action or proceeding to which he or she is made a party by reason of being or having been a director or officer of the co-operative or of being or having been a director or officer, or acting or having acted in a similar capacity, of another entity, if,

(a) he or she acted honestly and in good faith with a view to the best interests of the co-operative or, as the case may be, to the best interests of the entity for which he or she acted as a director or officer or in a similar capacity at the co-operative's request; and

(b) in the case of a criminal or administrative action or proceeding that is enforced by a monetary penalty, he or she had reasonable grounds for believing that his or her conduct was lawful.

Indemnification re: court action

(3)  A co-operative may, with the approval of the court, indemnify a person referred to in subsection (2) in respect of an action by or on behalf of the co-operative or other entity to procure a judgment in its favour, to which the person is made a party because of that person's association with the co-operative or other entity as described in subsection (2), against all costs, charges and expenses reasonably incurred by the person in connection with such action if he or she fulfils the conditions set out in clauses (2) (a) and (b).

Indemnification re: civil or criminal action

(4)  Despite anything in this section, a person referred to in subsection (2) is entitled to indemnity from the co-operative in respect of all costs, charges and expenses reasonably incurred by the person in connection with the defence of any civil, criminal or administrative action or proceeding to which he or she is made a party because of that person's association with the co-operative or other entity as described in subsection (2), if the person seeking indemnity,

(a) was substantially successful on the merits in his or her defence of the action or proceeding; and

(b) fulfils the conditions set out in clauses (2) (a) and (b).

Insurance

(5)  A co-operative may purchase and maintain insurance for the benefit of any person referred to in subsection (2) against any liability incurred by the person,

(a) in his or her capacity as a director or officer of the co-operative, except where the liability relates to the person's failure to act honestly and in good faith with a view to the best interests of the co-operative; or

(b) in his or her capacity as a director or officer, or similar capacity, of another entity where the person acts or acted in that capacity at the co-operative's request, except where the liability relates to the person's failure to act honestly and in good faith with a view to the best interests of the other entity.

Application for court approval

(6)  A co-operative or a person referred to in subsection (2) may apply to the court for an order approving an indemnity under this section and the court may so order and make any further order it thinks fit.

Same

(7)  Upon an application under subsection (6), the court may order notice to be given to any interested person and such person is entitled to appear and be heard in person or by counsel.

Liability of directors for unlawful payment of indemnity

(8)  Directors of a co-operative who vote for or consent to a resolution authorizing a payment of indemnity contrary to this section are jointly and severally liable to restore to the co-operative any amounts so distributed or paid and not otherwise recovered by the co-operative.

18.  Subparagraph 3 i of section 114 of the Act is amended by striking out "the number and class of shares held by such holder" at the end and substituting "the number, class and series of shares held by such holder".

19.  (1)  Subsection 124 (5) of the Act is repealed and the following substituted:

Notice to auditor

(5)  Before calling a general meeting for the purpose specified in subsection (4), the co-operative shall give the following documents to the auditor at least 15 days before notice of the meeting is sent:

1. Written notice of the intention to call the meeting, specifying the proposed date for sending notice of the meeting.

2. A copy of all material proposed to be sent to members in connection with the meeting.

(2)  Subsection 124 (6) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Auditor's right to make representations

(6)  An auditor has the right to make written representations to the co-operative, at least three days before notice of the meeting is sent, concerning,

. . . . .

20.  (1)  Subsection 125 (1) of the Act is repealed and the following substituted:

Notice to auditor of proposal to appoint another

(1)  If, at an annual meeting of members, it is proposed that an auditor who is not the incumbent auditor be appointed, the co-operative shall give written notice to the incumbent auditor, at least 15 days before notice of the meeting is sent, that management intends not to recommend the reappointment of the incumbent auditor at the annual meeting and the written notice shall also specify the proposed date on which notice of the meeting is to be sent.

(2)  Subsection 125 (2) of the Act is amended by striking out "The incumbent auditor has the right to make to the co-operative, three days or more before the mailing of the notice of the meeting, representations in writing concerning" at the beginning and substituting "The incumbent auditor has the right to make written representations to the co-operative, at least three days before notice of the meeting is sent, concerning".

21.  Subsection 127 (5) of the Act is amended by striking out "the auditor shall mail such amended report to the members" at the end and substituting "the auditor shall send the amended report to the members".

22.  Subparagraph 2 ii of subsection 130 (3) of the Act is repealed and the following substituted:

ii. The amount of dividends declared on each class and series of shares.

23.  (1)  Paragraph 20 of subsection 133 (1) of the Act is repealed and the following substituted:

20. The authorized capital, giving the number of each class and series of shares and a brief description of each class and series and indicating any class or series that is redeemable and the redemption price.

(2)  Paragraph 21 of subsection 133 (1) of the Act is amended by striking out "the number of shares of each class issued and outstanding" in the portion before subparagraph i and substituting "the number of shares of each class and series issued and outstanding".

(3)  Subparagraph 21 i of subsection 133 (1) of the Act is amended by striking out "the number of shares of each class issued" at the beginning and substituting "the number of shares of each class and series issued".

24.  (1)  Paragraph 8 of subsection 134 (3) of the Act is repealed and the following substituted:

8. The gross amount of arrears of dividends on any class or series of shares and the date to which such dividends were last paid.

(2)  Paragraph 9 of subsection 134 (3) of the Act is amended by striking out "the class and number of shares affected" and substituting "the class and series and the number of shares affected".

25.  Section 140 of the Act is repealed and the following substituted:

Distribution of financial statement to members

140.  (1)  At least 10 days before the annual meeting of members, a co-operative shall send a copy of the financial statement and, subject to section 123, the auditor's report to each member at the member's latest address as shown on the records of the co-operative.

Same

(2)  The directors of a co-operative shall also send to each member a copy of any financial statement and auditor's report amended under subsection 127 (4) or (5).

Exception

(3)  Subsections (1) and (2) do not apply with respect to a member who has given written notice to the co-operative that the member does not wish to receive the financial statements and auditor's reports.

26.  (1)  Subsection 141 (1) of the Act, as amended by the Statutes of Ontario, 1997, chapter 28, section 37, is amended by striking out "that are required to be mailed by the co-operative to its members" at the end and substituting "that the co-operative is required to send to its members".

(2)  Subsection 141 (2) of the Act, as amended by the Statutes of Ontario, 1997, chapter 28, section 37, is amended by striking out "on the same date such statements are mailed or required to be mailed by the co-operative to its members, whichever is the earlier" at the end and substituting "on the same date that the co-operative sends them, or is required to send them, to its members, whichever is earlier".

27.  (1)  Clauses 151 (1) (h) and (i) of the Act are repealed and the following substituted:

(h) divide a class of shares, whether issued or unissued, into series and fix the number of shares in each series and the preferences, rights, conditions, restrictions, limitations and prohibitions attaching to the shares;

(h.1) authorize the directors to divide any class of unissued shares into series and fix the number of shares in each series and the preferences, rights, conditions, restrictions, limitations and prohibitions attaching to the shares;

(h.2) authorize the directors to change the preferences, rights, conditions, restrictions, limitations or prohibitions attaching to unissued shares of any series;

(h.3) revoke, diminish or enlarge any authority conferred on the directors under clause (h.1) or (h.2);

(i) redesignate any class or series of shares;

(i.1) reclassify any shares into a different class or series;

(2)  Section 151 of the Act, as amended by the Statutes of Ontario, 1992, chapter 19, section 20 and 1999, chapter 12, Schedule I, section 1, is amended by adding the following subsection:

Directors' authority to amend articles

(1.1)  If the directors are authorized by the articles to divide any class of unissued shares into series and determine the designations, preferences, rights, conditions, restrictions, limitations or prohibitions attaching to the shares, the directors may authorize an amendment to the articles to so provide.

(3)  Subsection 151 (2) of the Act is repealed and the following substituted:

Authorization

(2)  An amendment under subsection (1) shall be authorized by a special resolution and an amendment under subsection (1.1) may be authorized by a resolution of the directors.

(4)  Subsection 151 (4) of the Act, as re-enacted by the Statutes of Ontario, 1999, chapter 12, Schedule I, section 1, is repealed and the following substituted:

Additional authorization, preference shares

(4)  The rules set out in subsection (4.1) apply,

(a) if the amendment is to delete or vary a preference, right, condition, restriction, limitation or prohibition attaching to a class or series of preference shares; or

(b) if the amendment is to create preference shares ranking in any respect in priority to, or in parity with, any class or series of preference shares, other than a series authorized by section 27.1.

Same

(4.1)  The following rules apply in the circumstances described in subsection (4):

1. In addition to the confirmation required by subsection (2), the special resolution is not effective until it has been confirmed,

i. by at least two-thirds of the votes cast at a meeting of the holders of the affected class, classes or series of shares, duly called for the purpose, or by such greater proportion of the votes cast as the articles may provide, and

ii. by such additional authorization as the articles may provide.

2. The holders of a series of shares of a class are entitled to vote separately only if the series is affected by the amendment in a manner that is different from other shares of the same class.

28.  Subsection 151.1 (1) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 12, Schedule I, section 1, is amended by striking out "preference shares of any class" in the portion after clause (b) and substituting "preference shares of any class or series".

29.  (1)  Clauses 156 (2) (d) and (e) of the Act are repealed and the following substituted:

(d) the authorized capital of the amalgamated co-operative, the classes and series, if any, of shares into which it is to be divided, the number of shares of each class and series and the par value of each share;

(e) if there are to be preference shares, the designations, preferences, rights, conditions, restrictions, limitations and prohibitions attaching to them and to each series, in so far as they have been fixed by the directors;

(2)  Subsection 156 (6) of the Act is repealed and the following substituted:

Approval by holders of preference shares

(6)  An amalgamation agreement is not effective until it has been confirmed in the manner provided in subsections 151 (4) and (4.1), with necessary modifications, in addition to the approval required by subsection (5), if carrying out the amalgamation agreement would result in the deletion or variation of a preference, right, condition, restriction, limitation or prohibition attaching to a class or series of preference shares of any of the amalgamating co-operatives or in the creation of preference shares of the amalgamated co-operative ranking in any respect in priority to, or in parity with, any existing class or series of preference shares of any of the amalgamating co-operatives.

30.  (1)  Subsection 172 (1) of the Act is repealed and the following substituted:

Notices

Notice to members and directors

(1)  Subject to the articles or by-laws of a co-operative, a notice or other document required to be given or sent by the co-operative to a member or director,

(a) may be delivered personally or sent by mail to his or her latest address as shown on the records of the co-operative; or

(b) except in such circumstances as may be prescribed, may be sent electronically to him or her in accordance with the Electronic Commerce Act, 2000 and such conditions as may be prescribed under this Act.

Same

(1.1)  A notice or other document sent by mail by the co-operative to a member or director shall be deemed to be given or sent,

(a) for the purposes of subsections 56 (3), 66 (5), 124 (5) or (6), 125 (1) and 141 (2), on the date on which it is mailed; and

(b) in any other case and subject to the articles or by-laws of the co-operative, at the time when it would be delivered in the ordinary course of mail.

(2)  Section 172 of the Act is amended by adding the following subsection:

Notice from members and directors

(2.1)  Subject to the articles or by-laws of a co-operative, a notice or other document required to be given or sent by a member or director to the co-operative,

(a) may be delivered personally or sent by mail to the head office of the co-operative in accordance with subsection (3); or

(b) except in such circumstances as may be prescribed, may be sent electronically to the co-operative in accordance with the Electronic Commerce Act, 2000 and such conditions as may be prescribed under this Act.

31.  (1)  Clause 186 (a) of the Act, as amended by the Statutes of Ontario, 1994, chapter 17, section 29, is repealed and the following substituted:

(a) respecting names, objects, authorized capital, membership, the designations, preferences, rights, conditions, restrictions, limitations and prohibitions attaching to shares or classes or series of shares or any other matter pertaining to articles or the filing of articles;

(2)  Section 186 of the Act, as amended by the Statutes of Ontario, 1992, chapter 19, section 24, 1994, chapter 17, section 29, 1997, chapter 19, section 3 and 1997, chapter 28, section 49, is amended by adding the following clauses:

(a.2) prescribing, for the purposes of section 31, the manner by which preference shares issued in classes or in series may be redeemed;

(a.3) prescribing, for the purposes of section 34, the number of security holders;

. . . . .

(b.3) governing the electronic delivery of documents, including prescribing for the purposes of section 172 the circumstances in which a document shall not be sent electronically;

Commencement

32.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

Same

(2)  Sections 1 to 16 and 18 to 31 come into force on a day to be named by proclamation of the Lieutenant Governor.

SCHEDULE 9
AMENDMENTS TO THE CORPORATIONS TAX ACT

1.  Section 1 of the Corporations Tax Act, as amended by the Statutes of Ontario, 1992, chapter 3, section 1, 1994, chapter 14, section 1, 1996, chapter 1, Schedule B, section 1, 1996, chapter 29, section 36, 1997, chapter 19, section 4, 1997, chapter 43, Schedule A, section 1, 1998, chapter 34, section 26, 1999, chapter 9, section 72, 2000, chapter 42, section 10, 2001, chapter 23, section 20 and 2004, chapter 16, section 2, is amended by adding the following subsection:

Interpretation, gross revenue

(12)  For taxation years commencing after December 31, 2006, "gross revenue" as defined in subsection 248 (1) of the Income Tax Act (Canada) shall be read to include an amount determined under subsection 11.0.1 (3) of this Act.

2.  Section 11 of the Act, as amended by the Statutes of Ontario, 1992, chapter 3, section 2, 1994, chapter 14, section 4, 1996, chapter 29, section 37, 1997, chapter 43, Schedule A, section 5, 1998, chapter 34, section 28, 1999, chapter 9, section 75, 2000, chapter 10, section 1, 2001, chapter 8, section 19, 2001, chapter 23, section 22, 2002, chapter 22, section 38, 2003, chapter 7, section 1 and 2004, chapter 16, section 2, is amended by adding the following subsection:

Foreign non-business income tax

(12.1)  For the purposes of this Act, subsection 20 (12.1) of the Income Tax Act (Canada) does not apply to allow a deduction in computing the income of a corporation for a taxation year ending after December 31, 1997 except to the extent that the portion of the foreign non-business income tax paid by the corporation to which that subsection applies was not included in computing the corporation's non-business income tax for any taxation year under subsection 126 (4.1) of that Act.

3.  The Act is amended by adding the following section:

Deductions, resource corporations

11.0.1  (1)  For taxation years ending after December 31, 2002, paragraphs 12 (1) (o), (x.2) and (z.5), 18 (1) (m) and 20 (1) (v) of the Income Tax Act (Canada) do not apply in computing the income of a corporation from a business or property for the purposes of this Act and the provisions of this section apply instead.

Deduction not allowed

(2)  Despite paragraph 18 (1) (a) of the Income Tax Act (Canada), in computing the income of a corporation for taxation years ending after December 31, 2002 from a business or property, no deduction shall be made in respect of any tax on income levied by any province or territory in Canada for the year from mining operations other than a deduction prescribed by the regulations.

Income amounts, royalties, etc.

(3)  There shall be included in computing the income of a corporation for a taxation year ending after December 31, 2002 as income from a business or property any amount, other than an amount prescribed by the regulations and an amount referred to in subsection (5),

(a) that became receivable in the year by,

(i) Her Majesty in right of Canada or of a province,

(ii) an agent of Her Majesty in right of Canada or of a province, or

(iii) a corporation, commission or association that is controlled by Her Majesty in right of Canada or of a province or by an agent of Her Majesty in right of Canada or of a province; and

(b) that can reasonably be considered to be a royalty, tax (other than a tax or portion of a tax that can reasonably be considered to be a municipal or school tax), lease rental or bonus, however described, or to be in respect of the late receipt or non-receipt of any of those amounts, in relation to,

(i) the acquisition, development or ownership of a Canadian resource property of the corporation, or

(ii) the production in Canada,

(A) of petroleum, natural gas or related hydrocarbons from a natural accumulation of petroleum or natural gas (other than a mineral resource) located in Canada, or from an oil or gas well located in Canada, in respect of which the corporation had an interest,

(B) of sulphur from a natural accumulation of petroleum or natural gas located in Canada, from an oil or gas well located in Canada or from a mineral resource located in Canada, in respect of which the corporation had an interest,

(C) to any stage that is not beyond the prime metal stage or its equivalent, of metal, minerals (other than iron or petroleum or related hydrocarbons) or coal from a mineral resource located in Canada in respect of which the corporation had an interest,

(D) to any stage that is not beyond the pellet stage or its equivalent, of iron from a mineral resource located in Canada in respect of which the corporation had an interest, or

(E) to any stage that is not beyond the crude oil stage or its equivalent, of petroleum or related hydrocarbons from a deposit located in Canada of bituminous sands or oil shales in respect of which the corporation had an interest.

Same

(4)  There shall be included in computing the income of a corporation for a taxation year ending after December 31, 2002 as income from a business or property 25 per cent of the corporation's prescribed resource loss for the year.

Royalties

(5)  In computing the income of a corporation from a business or property for a taxation year ending after December 31, 2002, no deduction shall be made in respect of any amount, other than an amount prescribed by the regulations,

(a) that is paid or payable in the year to,

(i) Her Majesty in right of Canada or of a province,

(ii) an agent of Her Majesty in right of Canada or of a province, or

(iii) a corporation, a commission or an association that is controlled by Her Majesty in right of Canada or of a province or by an agent of Her Majesty in right of Canada or of a province; and

(b) that can reasonably be considered to be a royalty, tax (other than a tax or portion of a tax that can reasonably be considered to be a municipal or school tax), lease rental or bonus, however described, or to be in respect of the late payment or non-payment of any of those amounts, in relation to,

(i) the acquisition, development or ownership of a Canadian resource property, or

(ii) the production in Canada,

(A) of petroleum, natural gas or related hydrocarbons from a natural accumulation of petroleum or natural gas (other than a mineral resource) located in Canada, or from an oil or gas well located in Canada,

(B) of sulphur from a natural accumulation of petroleum or natural gas located in Canada, from an oil or gas well located in Canada or from a mineral resource located in Canada,

(C) to any stage that is not beyond the prime metal stage or its equivalent, of metal, minerals (other than iron or petroleum or related hydrocarbons) or coal from a mineral resource located in Canada,

(D) to any stage that is not beyond the pellet stage or its equivalent, of iron from a mineral resource located in Canada, or

(E) to any stage that is not beyond the crude oil stage or its equivalent, of petroleum or related hydrocarbons from a deposit located in Canada of bituminous sands or oil shales.

4.  (1)  Clause 13.2 (2) (a) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 34, section 30 and amended by 2004, chapter 16, section 2, is amended by striking out the portion before subclause (i) and substituting the following:

(a) all capital costs in respect of expenditures incurred by the corporation after May 5, 1998 and before January 1, 2005,

. . . . .

(2)  Clause 13.2 (2) (b) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 34, section 30 and amended by 2004, chapter 16, section 2, is amended by striking out "after May 5, 1998" in the portion before subclause (i) and substituting "after May 5, 1998 and before January 1, 2005".

5.  (1)  Paragraph 1 of subsection 13.3 (2) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 34, section 31 and amended by 2004, chapter 16, section 2, is amended by striking out "after July 1, 1998 and in the taxation year" and substituting "in the taxation year, but after July 1, 1998 and before January 1, 2005".

(2)  Subsection 13.3 (6) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 34, section 31 and amended by 2004, chapter 16, section 2, is amended by striking out "after July 1, 1998" in the portion before paragraph 1 and substituting "after July 1, 1998 and before January 1, 2005".

6.  (1)  Subsection 13.5 (2) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 12 and amended by 2004, chapter 16, section 2, is amended by striking out "and after May 2, 2000" at the end and substituting "but after May 2, 2000 and before January 1, 2005".

(2)  Section 13.5 of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 12 and amended by 2002, chapter 8, Schedule P, section 2 and 2004, chapter 16, section 2, is amended by adding the following subsection:

Transitional rule for licences, 2004

(3.1)  In determining, for the purposes of subsection (3), a corporation's notional price for technology that is licensed to an institution pursuant to a licence granted before January 1, 2005, the following rules apply:

1. If clause (a) of the definition of "notional price" in subsection (1) applies in respect of the corporation and the amount that the corporation normally would have charged for the grant of the licence would require more than one payment by a customer, the corporation's notional price for the technology for the purposes of this section shall not include any amount that would have been paid or payable by a customer after December 31, 2004.

2. If clause (a) of the definition of "notional price" in subsection (1) applies in respect of the corporation and the amount that the corporation normally would have charged for the grant of the licence would require that a single payment be made by a customer, the corporation's notional price for the technology for the purposes of this section shall be nil unless the single amount would have been paid or payable by a customer on or before December 31, 2004.

3. If clause (b) of the definition of "notional price" in subsection (1) applies in respect of the corporation, the corporation's notional price for the technology for the purposes of this section shall not include any amount that would be paid or payable by the corporation after December 31, 2004.

7.  (1)  Section 13.6 of the Act, as enacted by the Statutes of Ontario, 2002, chapter 23, section 2 and amended by 2004, chapter 16, section 2, is repealed.

(2)  Despite subsection 13.6 (1) of the Act, as it read before this section comes into force, no corporation is entitled to a deduction under section 13.6 of the Act, as it read before this section comes into force, in respect of any income earned after November 25, 2002 from the sale of electricity.

8.  Clause 14 (5) (e) of the Act, as amended by the Statutes of Ontario, 1992, chapter 3, section 5, 1998, chapter 5, section 8, 1998, chapter 34, section 32, 1999, chapter 9, section 79, 2000, chapter 42, section 13 and 2004, chapter 16, section 2, is amended by striking out "and" at the end of subclause (i) and by adding the following subclauses:

(iii) for taxation years ending after December 31, 2002, clause 53 (1) (e) (i) (B) of the Income Tax Act (Canada) shall be deemed to read as follows:

(B) subsections 11.0.1 (3), (4) and (5) and clause 11 (10) (b) of this Act and paragraphs 29 (1) (b) and (2) (b) and 53 (1) (i), section 55, subsections 69 (6) and (7) and paragraph 82 (1) (b) of the Income Tax Act (Canada) and paragraphs 20 (1) (gg) and 81 (1) (r) and (s) of the Income Tax Act, Revised Statutes of Canada, 1952, chapter 148 and the provisions of the Income Tax Application Rules, 1971 (Canada) relating to income from the operation of new mines, and

(iv) for taxation years ending after December 31, 2002, clause 53 (2) (c) (i) (B) of the Income Tax Act (Canada) shall be deemed to read as follows:

(B) subsections 11.0.1 (3), (4) and (5) and clause 11 (10) (b) of this Act and section 31, subsection 40 (2), section 55 and subsections 69 (6) and (7) of the Income Tax Act (Canada) and paragraphs 20 (1) (gg) and 81 (1) (r) and (s) of the Income Tax Act, Revised Statutes of Canada, 1952, chapter 148,

9.  Clause (c) of the definition of "Canadian exploration and development expenses" in subsection 18 (15) of the Act, as amended by the Statutes of Ontario, 2004, chapter 16, section 2, is repealed and the following substituted:

(c) despite paragraph 18 (1) (m) of the Income Tax Act (Canada), as that paragraph applies to this Act for a taxation year ending before January 1, 2003 by virtue of subsection 11 (1) of this Act, the cost to the corporation of a Canadian resource property, but for greater certainty not including any payment made to any of the persons referred to in any of the subparagraphs (i) to (iii) of the said paragraph (m) for the preservation of a person's rights in respect of a Canadian resource property or a property that would have been a Canadian resource property if it had been acquired by the corporation after 1971, and not including a payment to which the said paragraph (m) applied by virtue of subparagraph (v) thereof,

(c.1) despite subsection 11.0.1 (5) of this Act, for taxation years ending after December 31, 2002, the cost to the corporation of a Canadian resource property, but for greater certainty not including any payment made to any of the persons referred to in clause 11.0.1 (5) (a) for the preservation of a person's rights in respect of a Canadian resource property or a property that would have been a Canadian resource property if it had been acquired by the corporation after 1971, and not including a payment to which subsection 11.0.1 (5) applies by virtue of subclause 11.0.1 (5) (b) (ii),

10.  Section 19 of the Act, as amended by the Statutes of Ontario, 2004, chapter 16, section 2, is amended by adding the following subsections:

Taxation years after 2002

(2)  Despite subsection (1), paragraph (e) of the definition of "Canadian development expense" in subsection 66.2 (5) of the Income Tax Act (Canada) shall be deemed to refer to section 11.0.1 of this Act and shall be read as follows for the purposes of the application of that definition for taxation years ending after December 31, 2002:

(e) despite subsection 11.0.1 (5), for taxation years ending after December 31, 2002, the cost to the corporation of, including any payment for the preservation of a corporation's rights in respect of, any property described in paragraph (b), (e) or (f) of the definition of "Canadian resource property" in subsection 66 (15) of the Income Tax Act (Canada) or any right to or interest in such property (other than such a right or an interest that the corporation has by reason of being a beneficiary under a trust or a member of a partnership) but not including any payment made to any of the persons referred to in clause 11.0.1 (5) (a) for the preservation of a corporation's rights in respect of a Canadian resource property nor a payment to which subsection 11.0.1 (5) applied because of subclause 11.0.1 (5) (b) (ii).

Same

(3)  Despite subsection (1), paragraph (a) of the definition of "Canadian oil and gas property expense" in subsection 66.4 (5) of the Income Tax Act (Canada) shall be deemed to refer to section 11.0.1 of the Act and shall be read as follows for the purposes of the application of that definition for taxation years ending after December 31, 2002:

(a) despite subsection 11.0.1 (5), for taxation years ending after December 31, 2002, the cost to the corporation of, including any payment for the preservation of a corporation's rights in respect of, any property described in paragraph (a), (c) or (d) of the definition of "Canadian resource property" in subsection 66 (15) of the Income Tax Act (Canada) or any right to or interest in such property (other than such a right or an interest that the corporation has by reason of being a beneficiary under a trust or a member of a partnership) or an amount paid or payable to Her Majesty in right of the Province of Saskatchewan as a net royalty payment pursuant to a net royalty petroleum and natural gas lease that was in effect on March 31, 1977 to the extent that it can reasonably be regarded as a cost of acquiring the lease, but not including any payment made to any of the persons referred to in clause 11.0.1 (5) (a) for the preservation of a corporation's rights in respect of a Canadian resource property nor a payment (other than a net royalty payment referred to in this paragraph) to which subsection 11.0.1 (5) applied because of subclause 11.0.1 (5) (b) (ii).

11.  Section 22 of the Act, as amended by the Statutes of Ontario, 2004, chapter 16, section 2, is amended by striking out "clause 19 (b)" and substituting "clause 19 (1) (b)".

12.  Section 26 of the Act, as amended by the Statutes of Ontario, 1992, chapter 3, section 6, 1996, chapter 29, section 44 and 2004, chapter 16, section 2, is amended by adding the following subsections:

Disposition of petroleum, etc.

(4.1)  Where a corporation is an operator with respect to a natural accumulation of petroleum or natural gas in Canada, an oil or gas well in Canada or a mineral resource in Canada and at any time in a taxation year beginning after December 31, 2006 disposes of or acquires property produced in the operation that is petroleum, natural gas or related hydrocarbons or metal or minerals produced in the operation, the rules prescribed by the regulations apply to determine the amount of the proceeds of disposition deemed to be received by the corporation or the cost to the corporation of the property.

. . . . .

Resource royalties, reimbursement by corporation

(6)  The rules set out in subsection (7) apply for the purposes of this Act, other than this section, where for taxation years beginning after December 31, 2006,

(a) a corporation, under the terms of a contract, pays to another person an amount (in this subsection referred to as the "specified payment") that may reasonably be considered to have been received by the other person as a reimbursement, contribution or allowance in respect of an amount (referred to in clause (b) as the "particular amount") paid or payable by the other person;

(b) the particular amount is included in the income of the other person or is denied as a deduction in computing the income of the other person by reason of subsection 11.0.1 (3) or (5), as the case may be; and

(c) the corporation was resident in Canada or carrying on business in Canada at the time the specified payment was made by the corporation.

Same

(7)  The following are the rules for the purposes of subsection (6):

1. The corporation shall be deemed neither to have made nor to have become obligated to make the specified payment to the other person but to have paid an amount described in subsection 11.0.1 (5) equal to the amount of the specified payment.

2. The other person shall be deemed neither to have received nor to have become entitled to receive the specified payment from the corporation.

13.  Section 31 of the Act, as amended by the Statutes of Ontario, 1992, chapter 3, section 7, 1997, chapter 43, Schedule A, section 12, 1998, chapter 34, section 34, 2001, chapter 23, section 27 and 2004, chapter 16, section 2, is amended by adding the following subsection:

Same, taxation years ending after 2002

(3.1)  In the application of subsection 96 (1) of the Income Tax Act (Canada) for the purposes of this Act for a taxation year ending after December 31, 2002, subparagraphs 96 (1) (d) (i) and (ii) of that Act do not apply and, where a corporation is a member of a partnership, the corporation's income, non-capital loss, net capital loss, restricted farm loss and farm loss, if any, for a taxation year, or the corporation's taxable income earned in Canada for a taxation year, as the case may be, shall be computed as if each income or loss of the partnership for a taxation year were computed,

(a) as if this Act were read without reference to,

(i) clause 11 (10) (b) and subsection 11.0.1 (4) of this Act, and

(ii) section 34.1, subsection 59 (1), paragraph 59 (3.2) (c.1) and subsections 66.1 (1), 66.2 (1) and 66.4 (1) of the Income Tax Act (Canada), as made applicable for the purposes of this Act;

(b) as if no deduction were permitted under any of section 29 of the Income Tax Application Rules, subsections 34.2 (4) and 65 (1) and sections 66, 66.1, 66.2, 66.21 and 66.4 of the Income Tax Act (Canada), as made applicable for the purposes of this Act; and

(c) as if the modifications described in clauses (3) (a), (b) and (c) applied.

14.  The definition of "Authority" in subsection 37.1 (1) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 40 and amended by 2004, chapter 16, section 2, is repealed and the following substituted:

"Authority" means the Ontario Strategic Infrastructure Financing Authority continued under subsection 2 (1) of the Ontario Strategic Infrastructure Financing Authority Act, 2002; ("Office")

15.  (1)  Subsection 41 (3.1) of the Act, as enacted by the Statutes of Ontario, 1996, chapter 1, Schedule B, section 5 and amended by 2004, chapter 16, section 2, is repealed and the following substituted:

Business limit

(3.1)  For the purposes of this section and subsection 43 (4), the amount of the corporation's business limit for the taxation year under paragraph 125 (1) (c) of the Income Tax Act (Canada) shall be determined without reference to subsection 125 (5.1) of that Act.

(2)  Subsection 41 (3.2) of the Act, as re-enacted by the Statutes of Ontario, 2003, chapter 7, section 3 and amended by 2004, chapter 16, section 2, is amended by striking out the portion before clause (a) and substituting the following:

Application of certain federal provisions

(3.2)  In applying subsections 125 (2) and (3) of the Income Tax Act (Canada) to determine a corporation's business limit under paragraph 125 (1) (c) of that Act for the purposes of this section and subsection 43 (4) for a taxation year, the dollar amount set out in subsections 125 (2) and (3) of the Income Tax Act (Canada) shall be read as a reference to the total of,

. . . . .

(3)  Subsection 41 (4) of the Act, as amended by the Statutes of Ontario, 2004, chapter 16, section 2, is repealed and the following substituted:

Ontario small business allocation factor

(4)  For the purposes of this section, the Ontario small business allocation factor for the taxation year is the ratio of "A" to "B" where,

"A" is the amount of that portion of the corporation's taxable income for the taxation year that is determined to have been earned in Ontario under the rules referred to in the definition of "taxable income earned in the year in a province" in subsection 124 (4) of the Income Tax Act (Canada), and

"B" is the total amount of the portions of the corporation's taxable income for the taxation year that are determined to have been earned in provinces of Canada, under the rules referred to in the definition of "taxable income earned in the year in a province" in subsection 124 (4) of the Income Tax Act (Canada).

16.  Clause 43 (4) (a) of the Act, as enacted by the Statutes of Ontario, 1992, chapter 3, section 10 and amended by 2004, chapter 16, section 2, is repealed and the following substituted:

(a) the least of the amounts determined in respect of the corporation for the taxation year under paragraphs 125 (1) (a), (b) and (c) of the Income Tax Act (Canada), as modified by section 41 of this Act,

17.  (1)  Paragraph 4 of subsection 43.1 (4) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 45 and amended by 2004, chapter 16, section 2, is amended by striking out "the rules in subsection 142.7 (12) of the Income Tax Act (Canada) apply" and substituting "the conditions described in paragraphs 142.7 (12) (a) and (b) of the Income Tax Act (Canada) apply".

(2)  Subsection 43.1 (4) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 14, section 17 and amended by 2002, chapter 22, section 45 and 2004, chapter 16, section 2, is amended by adding the following paragraphs:

5. Paragraph 4 does not apply unless,

i. before the later of the date determined under paragraph 142.7 (11) (b) of the Income Tax Act (Canada) and the day that is 180 days after the day the Budget Measures Act (Fall), 2004 receives Royal Assent,

A. the entrant bank and the Canadian affiliate jointly elect that paragraph 4 applies, if the Canadian affiliate has not been wound up or dissolved before the election is made, or

B. the entrant bank elects that paragraph 4 applies, if the Canadian affiliate has been wound up or dissolved and has ceased to exist before the election is made, or

ii. the entrant bank and the Canadian affiliate have jointly elected under paragraph 142.7 (12) (c) of the Income Tax Act (Canada) to have section 142.7 of that Act apply.

6. Paragraph 4 applies only to,

i. taxation years for which an election by the affiliate and bank under paragraph 142.7 (12) (c) of the Income Tax Act (Canada) applies or to which section 142.7 of the Income Tax Act (Canada) would have applied if an election had been made under paragraph 142.7 (12) (c) of that Act, and

ii. preceding taxation years in which a credit under this section was earned.

18.  Subsection 43.4 (11) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule A, section 18 and amended by 2004, chapter 16, section 2, is repealed and the following substituted:

Regulations

(11)  The Minister may make regulations,

(a) prescribing the method of calculating the amount of salaries or wages that shall be deemed to be paid by a corporation in a previous taxation year for purposes of subsection (3.1);

(b) prescribing the criteria that must be satisfied for a work placement commencing after January 19, 2004 to be a qualifying work placement;

(c) prescribing rules for determining the amount of eligible expenditures for qualifying work placements commencing after January 19, 2004.

Retroactive

(12)  A regulation made under subsection (11) is, if it so provides, effective with reference to any period after this section came into force.

19.  (1)  Clause 43.6 (10) (a) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule A, section 20 and amended by 2004, chapter 16, section 2, is repealed and the following substituted:

(a) the employment commenced after May 6, 1997 but before July 6, 2004 and continued for at least six consecutive months;

(a.1) during the six-month period referred to in clause (a), the employee was required to work an average of more than 24 hours a week; and

(2)  Subsection 43.6 (11) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule A, section 20 and amended by 2004, chapter 16, section 2, is amended by striking out the portion before clause (a) and substituting the following:

Eligible expenditures

(11)  A corporation's eligible expenditures in respect of a qualifying employment are the amounts that are paid or payable before January 1, 2005 to the employee as salary or wages during the 12-month period commencing on the first day of the qualifying employment and that,

. . . . .

20.  (1)  Clause 43.7 (13) (i) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule A, section 21 and amended by 2004, chapter 16, section 2, is repealed and the following substituted:

(i) the corporation published fewer than two books during the 12-month period immediately before the taxation year for which the credit under this section is claimed;

(2)  Section 43.7 of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule A, section 21 and amended by 1998, chapter 5, section 15, 2000, chapter 42, section 17 and 2004, chapter 16, section 2, is amended by adding the following subsections:

Corporate reorganizations

(15.1)  Subsection (15.2) applies if, after December 31, 2001, one of the following events occurs:

1. An Ontario book publishing company (the "transferor") transfers all or part of its business to another corporation (the "transferee") in accordance with subsection 85 (1) of the Income Tax Act (Canada).

2. A corporation (the "transferee") is formed as the result of an amalgamation of an Ontario book publishing company (the "transferor") with one or more other corporations in accordance with section 87 of the Income Tax Act (Canada).

3. An Ontario book publishing company (the "transferor") is wound up in accordance with subsection 88 (1) of the Income Tax Act (Canada) and its assets and liabilities, if any, are transferred to its parent corporation (the "transferee").

Continuation of corporation

(15.2)  If one of the conditions described in subsection (15.1) is satisfied, the following rules apply:

1. For the purposes of subsections (3), (8) and (14), the transferee shall be deemed to be the same corporation as, and a continuation of, the transferor with respect to an eligible literary work or the right to publish an eligible literary work that is transferred to the transferee under paragraph 1, 2 or 3 of subsection (15.1) and any credit previously claimed under this section by the transferor in a taxation year in respect of the eligible literary work shall be deemed to have been claimed by the transferee in that previous taxation year.

2. For the purposes of subsections (3), (8) and (14), the transferor ceases, immediately after the eligible literary work is transferred under paragraph 1, 2 or 3 of subsection (15.1) to be an Ontario book publishing company in respect of the eligible literary work or the right to publish the eligible literary work.

3. For the purpose of clause (13) (i), any books published by the transferor in the 12-month period immediately preceding the taxation year in which the event described in paragraph 1, 2 or 3 of subsection (15.1) occurs shall be deemed to have been published by the transferor and the transferee.

(3)  The definition of "government assistance" in subsection 43.7 (16) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule A, section 21 and amended by 2004, chapter 16, section 2, is repealed and the following substituted:

"government assistance" means assistance from a government, municipality or other public authority in any form, including a grant, subsidy, forgivable loan, deduction from tax and investment allowance, but does not include,

(a) an Ontario book publishing tax credit under this section, or

(b) a grant that is not specific to a particular eligible literary work; ("aide gouvernementale")

21.  (1)  Subsection 43.9 (3) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule A, section 23 and amended by 2004, chapter 16, section 2, is repealed and the following substituted:

Amount of tax credit

(3)  Subject to subsection (20), the amount of a qualifying corporation's Ontario business-research institute tax credit for a taxation year is the sum of all amounts, each of which is in respect of an eligible contract and is equal to 20 per cent of the amount calculated using the formula,

in which,

"A" is the total of all qualified expenditures incurred during the taxation year and after May 6, 1997 under the contract by the corporation, to the extent that no tax credit has been claimed under this section for a prior taxation year in respect of the qualified expenditures,

"B" is the number of days in the taxation year after May 6, 1997 that the corporation is not connected to the eligible research institute that entered into the eligible contract or to any other eligible research institute that carries out the scientific research and experimental development that is to be performed under the contract, and

"C" is the number of days in the taxation year after May 6, 1997.

(2)  Subsection 43.9 (4) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule A, section 23 and amended by 2004, chapter 16, section 2, is amended by adding "and" at the end of clause (a) and by striking out clauses (b), (c) and (d) and substituting the following:

(b) the corporation or a partnership of which it is a member, but not a specified member, entered into the contract with the eligible research institute.

(3)  Subsection 43.9 (5) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule A, section 23 and amended by 2004, chapter 16, section 2, is amended by striking out the portion before clause (a) and substituting the following:

Corporation connected to an eligible research institute

(5)  For the purposes of this section, a corporation is connected to an eligible research institute at any time during a taxation year of the corporation if at that time,

. . . . .

(4)  Section 43.9 of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule A, section 23 and amended by 2004, chapter 16, section 2, is amended by adding the following subsections:

Same, taxation years ending before March 28, 2003

(25.1)  Subsections (25.2) and (25.3) apply to a corporation that is entitled to a deduction under subsection (1) or (2) for a taxation year ending before March 28, 2003 if,

(a) the corporation was connected to an eligible research institute at any time during the term of the eligible contract and before March 28, 2003; or

(b) an employee of the eligible research institute was connected to the corporation at any time during the preceding taxation year, but was not connected to the corporation at any time during the taxation year.

Same

(25.2)  For the purposes of calculating interest under subsection 79 (1) or (4), 82 (4) or 83 (1), the deduction under subsection (1) or (2) from tax otherwise payable for the taxation year and the payment under subsection (24) on account of tax otherwise payable for the taxation year shall be deemed to have been made on the later of,

(a) March 28, 2003; and

(b) the day the notice of assessment for the taxation year is issued by the Minister allowing the deduction from tax otherwise payable.

Same

(25.3)  In the circumstances described in clause (25.1) (b), subsection (25.2) applies only to the portion of the Ontario business-research institute tax credit that relates to the salary or wages of that employee.

(5)  Subsection 43.9 (26) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule A, section 23 and amended by 2004, chapter 16, section 2, is amended by striking out the portion before clause (a) and substituting the following:

When employee connected to corporation

(26)  For the purposes of this section, if an eligible research institute and a corporation have entered into an eligible contract, an employee of the eligible research institute is connected to the corporation in a taxation year if, at any time in the taxation year of the corporation,

. . . . .

22.  The Act is amended by adding the following section:

Apprenticeship training tax credit

43.13  (1)  A corporation that complies with the requirements of this section may deduct from its tax otherwise payable under this Part for a taxation year, after making all deductions claimed under sections 39 to 41, 43 and 43.3 to 43.12 for the taxation year, an amount not exceeding the amount of its apprenticeship training tax credit for the taxation year.

Same

(2)  A corporation that complies with the requirements of this section may deduct from its tax otherwise payable for the year under Parts III and IV an amount not exceeding the amount by which its apprenticeship training tax credit for the taxation year exceeds the maximum amount, if any, deductible by the corporation for the year under subsection (1).

Amount of tax credit

(3)  The amount of a corporation's apprenticeship training tax credit for a taxation year is the total of all amounts each of which is in respect of a qualifying apprenticeship in the taxation year and each of which is the total of "A" and "B" where,

"A" is the lesser of,

(a) the product obtained by multiplying the corporation's specified percentage for the taxation year by the corporation's eligible expenditures made during the taxation year in respect of the qualifying apprenticeship, and

(b) the amount calculated using the formula,

$5,000 × C/D

in which,

"C" is the total number of days after May 18, 2004 and before January 1, 2011 that the apprentice was employed by the corporation during the taxation year, and

"D" is 365 days or, if the taxation year includes February 29, 366 days, and

"B" is an amount calculated by multiplying the amount of government assistance repaid by the corporation in the taxation year by the corporation's specified percentage for the taxation year in which the government assistance was received, to the extent that the repayment does not exceed the amount of the government assistance in respect of the qualifying apprenticeship that,

(a) has not been repaid in a prior year, and

(b) can reasonably be considered to have reduced the amount of the apprenticeship training tax credit that would otherwise have been allowed to the corporation under this section in respect of the qualifying apprenticeship.

Specified percentage

(4)  A corporation's specified percentage for a taxation year is the following:

1. 25 per cent if the total of all salaries or wages paid by the corporation in the previous taxation year is $600,000 or more.

2. The percentage determined under subsection (5) if the total of all salaries or wages paid by the corporation in the previous taxation year is greater than $400,000 but less than $600,000.

3. 30 per cent in any other case.

Same

(5)  The percentage referred to in paragraph 2 of subsection (4) is calculated by adding 25 per cent and the percentage calculated using the formula,

5% × [1 - (E/200,000)]

in which,

"E" is the total amount of salaries and wages paid by the corporation in the previous taxation year that is in excess of $400,000.

Same, amount of salaries and wages

(6)  For the purposes of subsections (4) and (5), the amount of salaries and wages paid by a corporation in a previous taxation year shall be deemed to be the amount that would be calculated,

(a) if the rules set out in subsections 87 (1.2) and (1.4) of the Income Tax Act (Canada) applied; and

(b) if no amount is included in respect of salaries and wages paid by any partnership of which the corporation was a member at any time during the taxation year.

Qualifying apprenticeship

(7)  For the purposes of this section, a qualifying apprenticeship is an apprenticeship in respect of which all of the following conditions and such other conditions as may be prescribed by the Minister are satisfied:

1. The apprentice's employment with the corporation commenced before January 1, 2008.

2. The apprenticeship is in a qualifying skilled trade in the opinion of the Minister of Training, Colleges and Universities or a person designated by him or her.

3. The corporation, or the corporation acting through a union or a local or joint apprenticeship committee, and the apprentice are participating in an apprenticeship program,

i. in which the training agreement has been registered under the Apprenticeship and Certification Act, 1998 by the Director of Apprenticeship or a person designated by him or her, or

ii. in which the contract of apprenticeship has been registered under the Trades Qualification and Apprenticeship Act by the Minister of Training, Colleges and Universities or a person designated by him or her.

End of apprenticeship

(8)  For the purposes of this section, a qualifying apprenticeship shall be deemed to end on the earlier of the date on which the apprentice is entitled to receive the appropriate certificate under the Apprenticeship and Certification Act, 1998 or the Trades Qualification and Apprenticeship Act or the date, if any, on which the training agreement or contract of apprenticeship is cancelled, suspended or revoked by the Ministry of Training, Colleges and Universities.

Eligible expenditures

(9)  Subject to subsections (12) and (13), the amount paid by a corporation to an apprentice in respect of a qualifying apprenticeship is an eligible expenditure for a taxation year if all of the following conditions are satisfied:

1. The expenditure is required, for the purposes of Part III of Regulation 183 of the Revised Regulations of Ontario, 1990 (General) made under this Act, to be included in the amount of salary or wages paid to employees of a permanent establishment of the corporation in Ontario.

2. Subdivision a of Division B of Part I of the Income Tax Act (Canada) requires the amount paid to the apprentice to be included in the apprentice's income from a source that is an office or employment.

3. The expenditure is in respect of a qualifying apprenticeship and is paid or payable for services performed by the apprentice for the corporation after May 18, 2004 and before January 1, 2011.

4. The expenditure relates to services provided by the apprentice to the corporation during the first 36 months of the apprenticeship program and does not relate to services performed before the commencement or after the end of the apprenticeship program.

Interpretation

(10)  For the purposes of paragraph 4 of subsection (9), an apprenticeship program is deemed to commence on the date that the training agreement or contract of apprenticeship is registered with the Ministry of Training, Colleges and Universities.

Other eligible expenditures

(11)  Subject to subsections (12) and (13), such other expenditures as may be prescribed are eligible expenditures of a corporation for a taxation year if the prescribed conditions are satisfied.

Exception

(12)  An expenditure made by a corporation in respect of a qualifying apprenticeship is not an eligible expenditure,

(a) if the apprentice serves the apprenticeship with a person other than the corporation; or

(b) to the extent that the amount of the expenditure would not be considered to be reasonable in the circumstances by persons dealing with each other at arm's length.

Total eligible expenditures

(13)  For the purposes of this section, the total of eligible expenditures made by a corporation in respect of a qualifying apprenticeship in a taxation year is calculated using the formula,

F - G

in which,

"F" is the sum of the amounts determined under subsections (9) and (11), and

"G" is the amount of all government assistance, if any, that the corporation has received, is entitled to receive or may reasonably be expected to be entitled to receive in respect of the eligible expenditures at the time the corporation's return for the taxation year is required to be delivered under this Act.

Corporate partner

(14)  If a corporation is a member of a partnership and the partnership would qualify in a particular taxation year of the corporation for an apprenticeship training tax credit if the partnership were a corporation whose fiscal period was its taxation year, the portion of that apprenticeship training tax credit that may reasonably be considered to be the corporation's share of the tax credit may be included in determining the amount of the corporation's apprenticeship training tax credit for the corporation's taxation year.

Limited partner

(15)  Despite subsection (14), a limited partner's share of a partnership's tax credit referred to in subsection (14) shall be deemed to be nil.

Deemed tax payment

(16)  A corporation shall be deemed to pay on account of its tax payable under this Act for a taxation year an amount claimed by the corporation, not exceeding the amount by which "H" exceeds "J" where,

"H" is the corporation's apprenticeship training tax credit for the taxation year, and

"J" is the maximum amount, if any, deductible by the corporation under subsections (1) and (2) in determining its tax payable under this Act for the taxation year.

Time of deemed payment

(17)  A corporation shall be deemed to make the payment referred to in subsection (16) and the Minister shall be deemed to apply the deemed payment on the day on or before which the corporation would be required under clause 78 (2) (b) to pay any balance of tax payable for the taxation year.

Books and records

(18)  Unless otherwise directed by the Minister, the apprenticeship contract or training agreement that is registered with the Ministry of Training, Colleges and Universities forms part of the records and books of account required to be kept under section 94 by the corporation providing the qualifying apprenticeship.

Definitions

(19)  In this section,

"government assistance" means assistance in any form from a government, municipality or other public authority, and includes a grant, subsidy, forgivable loan, deduction from tax or investment allowance, but does not include,

(a) a tax credit referred to as a "specified tax credit" in subsection 44.1 (4) of the Act, or

(b) a Canadian film or video production tax credit under section 125.4 of the Income Tax Act (Canada) or an investment tax credit under section 127 of that Act; ("aide gouvernementale")

"qualifying skilled trade" means an apprenticeship trade designated by the Minister that is regulated under the Apprenticeship and Certification Act, 1998 or the Trades Qualification and Apprenticeship Act. ("métier spécialisé admissible")

Regulations

(20)  The Minister may make regulations,

(a) prescribing rules for calculating the amount of the apprenticeship training tax credit;

(b) prescribing, for the purposes of subsection (7), conditions to be satisfied for an apprenticeship to be a qualifying apprenticeship;

(c) prescribing, for the purposes of subsection (11), expenditures and prescribing the conditions to be satisfied for a prescribed expenditure to be an eligible expenditure.

23.  (1)  Subsection 44.1 (4) of the Act, as enacted by the Statutes of Ontario, 1996, chapter 24, section 27 and amended by 1996, chapter 29, section 51, 1997, chapter 43, Schedule A, section 24, 1998, chapter 5, section 18, 1998, chapter 34, section 44 and 2004, chapter 16, section 2, is amended by adding the following paragraph:

12. An apprenticeship training tax credit under section 43.13.

(2)  Subsection 44.1 (5) of the Act, as re-enacted by the Statutes of Ontario, 1998, chapter 34, section 44 and amended by 1998, chapter 34, section 44 and 2004, chapter 16, section 2, is amended by striking out "sections 43.3 to 43.12" in the portion before paragraph 1 and substituting "sections 43.3 to 43.13".

(3)  Paragraph 1 of subsection 44.1 (5) of the Act, as re-enacted by the Statutes of Ontario, 1998, chapter 34, section 44 and amended by 1998, chapter 34, section 44 and 2004, chapter 16, section 2, is amended by striking out "sections 43.3 to 43.12" and substituting "sections 43.3 to 43.13".

24.  Subsection 49 (3) of the Act, as amended by the Statutes of Ontario, 2004, chapter 16, section 2, is repealed and the following substituted:

Income Tax Act (Canada), ss. 134, 134.2 applicable

(3)  Section 134 of the Income Tax Act (Canada) applies for the purposes of this Act and section 134.2 of that Act applies for the purposes of this Act in respect of a corporation that revokes, after February 27, 2000, an election to be taxed as a non-resident-owned investment corporation.

25.  The definition of "C" in subsection 51 (4) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 10, section 8 and amended by 2004, chapter 16, section 2, is amended by adding "as determined under subsection 43 (4)" at the end.

26.  Section 55.1 of the Act, as enacted by the Statutes of Ontario, 1996, chapter 29, section 55 and amended by 2001, chapter 23, section 37 and 2004, chapter 16, section 2, is amended by adding the following subsections:

Determining losses of entrant bank on winding-up of Canadian affiliate

(2)  If paragraphs 142.7 (12) (a) and (b) of the Income Tax Act (Canada) apply in respect of the winding-up of a Canadian affiliate of an entrant bank (within the meaning of subsection 142.7 (1) of that Act) or in respect of the dissolution of a Canadian affiliate of an entrant bank under a dissolution order (within the meaning of subsection 142.7 (12) of that Act), the rules in paragraphs 142.7 (12) (d) to (g) of that Act apply for the purposes of determining the non-capital loss or net capital loss of the entrant bank under this Act.

Exception

(3)  Subsection (2) does not apply unless,

(a) before the later of the date determined under paragraph 142.7 (11) (b) of the Income Tax Act (Canada) and the day that is 180 days after the day the Budget Measures Act (Fall), 2004 receives Royal Assent,

(i) the entrant bank and the Canadian affiliate jointly elect that subsection (2) applies, if the Canadian affiliate has not been wound up or dissolved before the election is made, or

(ii) the entrant bank elects that subsection (2) applies, if the Canadian affiliate has been wound up or dissolved and ceases to exist before the election is made; or

(b) the entrant bank and the Canadian affiliate have jointly elected under paragraph 142.7 (12) (c) of the Income Tax Act (Canada) to have section 142.7 of that Act apply.

Application of Income Tax Act (Canada), s. 142.7 (12) (h)

(4)  If subsection (2) applies in respect of the winding-up of a Canadian affiliate of an entrant bank or in respect of the dissolution of a Canadian affiliate of an entrant bank under a dissolution order, the rules in paragraph 142.7 (12) (h) of the Income Tax Act (Canada) apply in respect of the entrant bank.

Exception

(5)  Subsection (4) does not apply unless, for its particular taxation year referred to in paragraph 142.7 (12) (h) of the Income Tax Act (Canada), the entrant bank,

(a) elects under paragraph 142.7 (12) (h) of that Act to have that paragraph apply; or

(b) elects under this subsection before the date determined under clause (3) (a) that subsection (4) applies.

Application of subs. (2)

(6)  Subsection (2) applies only to taxation years for which an election by the affiliate and bank under paragraph 142.7 (12) (c) of the Income Tax Act (Canada) applies or to which section 142.7 of the Income Tax Act (Canada) would have applied if an election had been made under paragraph 142.7 (12) (c) of that Act.

27.  (1)  Subsection 57.5 (10) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 49 and amended by 2004, chapter 16, section 2, is amended by striking out the portion before paragraph 1 and substituting the following:

Winding-up or dissolution of a Canadian affiliate of an entrant bank

(10)  If the events described in paragraphs 142.7 (12) (a) and (b) of the Income Tax Act (Canada) have occurred with respect to the winding-up of a Canadian affiliate of an entrant bank (within the meaning of subsection 142.7 (1) of that Act) or in respect of the dissolution of a Canadian affiliate of an entrant bank under a dissolution order (within the meaning of subsection 142.7 (12) of that Act), the entrant bank shall be deemed to be the same corporation as, and a continuation of, the Canadian affiliate for the purposes of determining the amount of the following losses of the entrant bank:

. . . . .

(2)  Section 57.5 of the Act, as enacted by the Statutes of Ontario, 1994, chapter 14, section 21 and amended by 2002, chapter 22, section 49 and 2004, chapter 16, section 2, is amended by adding the following subsections:

Exception

(11)  Subsection (10) does not apply unless,

(a) before the later of the date determined under paragraph 142.7 (11) (b) of the Income Tax Act (Canada) and the day that is 180 days after the day the Budget Measures Act (Fall), 2004 receives Royal Assent,

(i) the entrant bank and the Canadian affiliate jointly elect that subsection (10) applies, if the Canadian affiliate has not been wound up or dissolved before the election is made, or

(ii) the entrant bank elects that subsection (10) applies, if the Canadian affiliate has been wound up or dissolved and ceases to exist before the election is made; or

(b) the entrant bank and the Canadian affiliate have jointly elected under paragraph 142.7 (12) (c) of the Income Tax Act (Canada) to have section 142.7 of that Act apply.

Application of subs. (10)

(12)  Subsection (10) applies only to,

(a) taxation years for which an election by the affiliate and bank under paragraph 142.7 (12) (c) of the Income Tax Act (Canada) applies or to which section 142.7 of the Income Tax Act (Canada) would have applied if an election had been made under paragraph 142.7 (12) (c) of that Act; and

(b) preceding taxation years in which a loss for the purposes of this section was incurred.

28.  (1)  Clause 61 (1) (d) of the Act, as re-enacted by the Statutes of Ontario, 2001, chapter 23, section 40 and amended by 2004, chapter 16, section 2, is repealed and the following substituted:

(d) for taxation years ending before May 19, 2004, all of its liabilities, whether secured or unsecured, including all deferred credits, deferred taxes and reserve for future tax liabilities, but not its current accounts payable and any amounts prescribed by the regulations;

(e) for taxation years ending after May 18, 2004, all of its liabilities, whether secured or unsecured, including all deferred credits, deferred taxes and reserve for future tax liabilities, but not including,

(i) its current trade accounts payable,

(ii) amounts that represent the employee source deductions, current taxes payable or wages and salaries payable by the corporation, or

(iii) an amount prescribed by the regulations.

(2)  Subsection 61 (2) of the Act, as re-enacted by the Statutes of Ontario, 1994, chapter 14, section 25 and amended by 2004, chapter 16, section 2, is amended by striking out "or" at the end of clause (f), by adding "and" at the end of clause (g) and by adding the following clause:

(h) for taxation years ending after May 19, 1993, amounts payable in connection with the purchase or trade of shares, bonds, debentures or other types of debt obligations.

(3)  Section 61 of the Act, as amended by the Statutes of Ontario, 1994, chapter 14, section 25, 1997, chapter 43, Schedule A, section 31, 2001, chapter 23, section 40 and 2004, chapter 16, section 2, is amended by adding the following subsection:

Current trade accounts payable

(2.1)  For the purposes of this Part, a corporation's current trade accounts payable means all accounts payable by the corporation to a supplier on account of the purchase of goods or services from the supplier, other than amounts payable in connection with the purchase or trade of shares, bonds, debentures or other types of debt obligations, if the accounts payable have not been outstanding for,

(a) 120 or more days, if the amount is payable to a related person; or

(b) 365 or more days, if the amount is payable to a person who is not a related person.

(4)  Subsection 61 (8) of the Act, as re-enacted by the Statutes of Ontario, 1994, chapter 14, section 25 and amended by 2004, chapter 16, section 2, is amended by striking out "determined under clause (1) (d)" and substituting "determined under clause (1) (d) for a taxation year ending before May 19, 2004".

(5)  Section 61 of the Act, as amended by the Statutes of Ontario, 1994, chapter 14, section 25, 1997, chapter 43, Schedule A, section 31, 2001, chapter 23, section 40 and 2004, chapter 16, section 2, is amended by adding the following subsection:

Trusts, taxation years ending after May 18, 2004

(8.1)  For the purposes of this Part, a corporation that is a beneficiary of a trust shall include in the amount determined under clause (1) (e) for a taxation year ending after May 18, 2004 the same proportion of the total liabilities of the trust including any deferred credits, less any amounts described in subclauses (1) (e) (i), (ii) and (iii) in respect of the trust, as the corporation's beneficial interest in the trust.

(6)  Subsection 61 (9) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 14, section 25 and amended by 2004, chapter 16, section 2, is repealed and the following substituted:

Trust's current accounts payable or current trade accounts payable

(9)  In determining the amount to be included under subsection (8) or (8.1) in calculating the paid-up capital of a corporation, the current accounts payable or current trade accounts payable of a trust, as the case may be, shall be determined under subsection (2) or (2.1) as if the trust were a corporation and, in the application of subsection (8) or (8.1), references to a related corporation or person shall be deemed to include references to all corporations or persons that are related to the trust or to the corporation in respect of which the amount under subsection (8) or (8.1) is being determined.

29.  (1)  Clause 62 (1) (c) of the Act, as re-enacted by the Statutes of Ontario, 1998, chapter 34, section 48 and amended by 2004, chapter 16, section 2, is repealed and the following substituted:

Investments

(c) subject to subsection (1.2), the amount that equals that proportion of the paid-up capital remaining after the deduction of the amounts deductible under clauses (a), (b) and (d) to (h) which the total cost of investments made by the corporation in other corporations bears to the total assets of the corporation remaining after the deduction of the amounts deductible under clauses (a), (b) and (d) to (h);

(2)  Clause 62 (1) (c) of the Act, as re-enacted by subsection (1), is repealed and the following substituted:

Investments

(c) subject to subsection (1.2), the amount that equals that proportion of the paid-up capital remaining after the deduction of the amounts deductible under clauses (a), (b) and (d) to (i) which the total cost of investments made by the corporation in other corporations bears to the total assets of the corporation remaining after the deduction of the amounts deductible under clauses (a), (b) and (d) to (i);

(3)  Clause 62 (1) (i) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 23, section 2 and amended by 2004, chapter 16, section 2, is repealed and the following substituted:

Electricity assets

(i) all amounts, except to the extent that they have been deducted by the corporation in computing its income under Part II for the taxation year or any prior taxation year, that are deductible by the corporation under clause 11 (10) (a) on account of property that is qualifying Ontario electrical generation and conservation property described in section 204 of Regulation 183 of the Revised Regulations of Ontario, 1990 (General) made under this Act.

(4)  The definition of "any other surplus" in subsection 62 (4) of the Act, as amended by the Statutes of Ontario, 2004, chapter 16, section 2, is amended by striking out "and" at the end of clause (a) and by striking out clause (b) and substituting the following:

(b) for taxation years ending before January 1, 2003, an amount referred to in paragraph 12 (1) (o), subsections 15 (1) and (2), 17 (1) and subsection 37.1 (3) of the Income Tax Act (Canada) as made applicable by virtue of subsection 11 (1) of this Act, and

(c) for taxation years ending after December 31, 2002, an amount referred to in subsection 11.0.1 (3) of this Act or in subsections 15 (1) and (2), 17 (1) and 37.1 (3) of the Income Tax Act (Canada) as made applicable by virtue of subsection 11 (1) of this Act.

(5)  Clause (a) of the definition of "any other surplus" in subsection 62 (5) of the Act, as amended by the Statutes of Ontario, 1994, chapter 14, section 26 and 2004, chapter 16, section 2, is amended by striking out "other than accounts payable referred to in subsection 61 (2)" and substituting "other than accounts payable referred to in subsection 61 (2) or current trade accounts payable referred to in subsection 61 (2.1)".

30.  Subsection 62.1 (10) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule A, section 33 and amended by 1998, chapter 34, section 49, 2001, chapter 23, section 42 and 2004, chapter 16, section 2, is repealed and the following substituted:

Capital deduction

(10)  The capital deduction of a financial institution for a taxation year is the amount determined under the following rules:

1. If the financial institution is related at any time in the taxation year to another corporation that,

i. is a financial institution,

ii. has a permanent establishment in Canada, and

iii. is not exempt by virtue of subsection 71 (1) from tax under this Part,

the financial institution's capital deduction for the taxation year is the amount calculated using the formula,

A/B × [($2 million × C/D) + E]

in which,

"A" is the amount that is the financial institution's taxable capital employed in Canada for the taxation year for the purposes of Part I.3 of the Income Tax Act (Canada),

"B" is the total of the amount of "A" for the taxation year and all amounts each of which is the amount that is the taxable capital employed in Canada for the purposes of Part I.3 of the Income Tax Act (Canada) of a related financial institution for its last taxation year ending before the end of the financial institution's taxation year, if the related financial institution has a permanent establishment in Canada and is not exempt by virtue of subsection 71 (1) from tax under this Part,

"C" is the number of days in the taxation year before October 1, 2001,

"D" is the number of days in the taxation year, and

"E" is the amount determined under subsection (10.1).

2. In any other case, the financial institution's capital deduction for the taxation year is the amount calculated using the formula,

($2 million × C/D) + E

in which "C", "D" and "E" have the same meanings as in paragraph 1.

Determination of "E"

(10.1)  The amount of "E" in subsection (10) for a taxation year is the total of,

(a) $5 million multiplied by the ratio of the number of days in the taxation year that are after September 30, 2001 and before January 1, 2005 to the total number of days in the taxation year;

(b) $7.5 million multiplied by the ratio of the number of days in the taxation year that are after December 31, 2004 and before January 1, 2006 to the total number of days in the taxation year;

(c) $10 million multiplied by the ratio of the number of days in the taxation year that are after December 31, 2005 and before January 1, 2007 to the total number of days in the taxation year;

(d) $12.5 million multiplied by the ratio of the number of days in the taxation year that are after December 31, 2006 and before January 1, 2008 to the total number of days in the taxation year; and

(e) $15 million multiplied by the ratio of the number of days in the taxation year that are after December 31, 2007 to the total number of days in the taxation year.

31.  Clause 63 (1) (b) of the Act, as amended by the Statutes of Ontario, 1994, chapter 14, section 27 and 2004, chapter 16, section 2, is repealed and the following substituted:

(b) the amount by which the amount of the total assets of the corporation in Canada exceeds,

(i) for taxation years ending before May 19, 2004, the total of the corporation's current accounts payable relating to its permanent establishments in Canada and any amounts prescribed by the regulations, or

(ii) for taxation years ending after May 18, 2004, any amount described in subclause 61 (1) (e) (i), (ii) or (iii) for the corporation relating to its permanent establishments in Canada,

32.  (1)  Subsection 66 (1) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 43, Schedule A, section 35 and amended by 2004, chapter 16, section 2, is repealed and the following substituted:

Tax on corporations subject to Division B or C

(1)  Except as otherwise provided in this section, the tax payable under this Part by a corporation for a taxation year for which its taxable paid-up capital or its taxable paid-up capital employed in Canada, as the case may be, is determined under Division B or C is the amount calculated using the formula,

A × B

in which,

"A" is the capital tax rate determined under subsection (1.1) for the corporation, and

"B" is the amount of the corporation's taxable paid-up capital or taxable paid-up capital employed in Canada, as the case may be, as determined under Division B or C.

Capital tax rate

(1.1)  The capital tax rate for a corporation for a taxation year is the total of,

(a) 0.3 per cent multiplied by the ratio of the number of days in the taxation year that are before January 1, 2009 to the total number of days in the taxation year;

(b) 0.225 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2008 and before January 1, 2010 to the total number of days in the taxation year;

(c) 0.15 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2009 and before January 1, 2011 to the total number of days in the taxation year; and

(d) 0.075 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2010 and before January 1, 2012 to the total number of days in the taxation year.

No tax payable after 2011

(1.2)  No tax is payable under this Part by a corporation that is not a financial institution for a taxation year commencing after December 31, 2011.

(2)  Subsection 66 (4) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule A, section 35 and amended by 2004, chapter 16, section 2, is repealed and the following substituted:

Tax payable by a financial institution

(4)  The tax payable under this Part for a taxation year by a financial institution, other than a credit union, is calculated using the formula,

[C × (D + E)] + F

in which,

"C" is the percentage of the taxable paid-up capital of the financial institution that is not deemed, under the prescribed rules, to be used by it in the taxation year in a jurisdiction other than Ontario,

"D" is the amount calculated under subsection (4.1),

"E" is the amount calculated under subsection (4.2) or (4.3), and

"F" is the amount of tax, if any, payable for the taxation year under section 66.1.

Same

(4.1)  The variable "D" in subsection (4) is calculated using the formula,

G × H

in which,

"G" is the total of,

(a) 0.6 per cent multiplied by the ratio of the number of days in the taxation year that are before January 1, 2009 to the total number of days in the taxation year,

(b) 0.45 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2008 and before January 1, 2010 to the total number of days in the taxation year,

(c) 0.3 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2009 and before January 1, 2011 to the total number of days in the taxation year, and

(d) 0.15 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2010 and before January 1, 2012 to the total number of days in the taxation year, and

"H" is the amount that is the lesser of,

(a) the adjusted taxable paid-up capital of the financial institution for the taxation year, as determined under Division B.1, and

(b) the basic capital amount of the financial institution for the taxation year.

Same

(4.2)  If the financial institution is a deposit-taking institution, as defined in subsection 66.1 (14), in the taxation year or is related in the taxation year to a deposit-taking institution, the variable "E" in subsection (4) is calculated using the formula,

J × K

in which,

"J" is the total of,

(a) 0.9 per cent multiplied by the ratio of the number of days in the taxation year that are before January 1, 2009 to the total number of days in the taxation year,

(b) 0.675 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2008 and before January 1, 2010 to the total number of days in the taxation year,

(c) 0.45 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2009 and before January 1, 2011 to the total number of days in the taxation year, and

(d) 0.225 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2010 and before January 1, 2012 to the total number of days in the taxation year, and

"K" is the amount, if any, by which the adjusted taxable paid-up capital of the financial institution for the taxation year exceeds its basic capital amount for the taxation year.

Same

(4.3)  If the financial institution is not a deposit-taking institution, as defined in subsection 66.1 (14), in the taxation year and is not related in the taxation year to a deposit-taking institution, the variable "E" in subsection (4) is calculated using the formula,

L × K

in which,

"L" is the total of,

(a) 0.72 per cent multiplied by the ratio of the number of days in the taxation year that are before January 1, 2009 to the total number of days in the taxation year,

(b) 0.54 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2008 and before January 1, 2010 to the total number of days in the taxation year,

(c) 0.36 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2009 and before January 1, 2011 to the total number of days in the taxation year, and

(d) 0.18 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2010 and before January 1, 2012 to the total number of days in the taxation year, and

"K" is the amount, if any, by which the adjusted taxable paid-up capital of the financial institution for the taxation year exceeds its basic capital amount for the taxation year.

No tax payable after 2011

(4.4)  No tax is payable under this Part by a financial institution for a taxation year commencing after December 31, 2011.

33.  Subsection 66.1 (3.2) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule A, section 36 and amended by 2004, chapter 16, section 2, is repealed and the following substituted:

Eligible tax

(3.2)  The amount of the eligible tax for a taxation year of a financial institution, other than a credit union, is the total of,

(a) the amount of tax, if any, payable by the financial institution under this section for the taxation year; and

(b) the amount calculated for the taxation year using the formula,

(A - B ) × (C × D × 0.2)

in which,

"A" is the amount of the adjusted taxable paid-up capital of the financial institution for the taxation year as determined under Division B.1,

"B" is the exempt amount of the financial institution for the taxation year as determined under clauses (1.2) (b) and (c),

"C" is the percentage of the taxable paid-up capital of the financial institution that is not deemed, under the prescribed rules, to be used by it in the taxation year in a jurisdiction other than Ontario, and

"D" is the total of,

(a) 0.9 per cent multiplied by the ratio of the number of days in the taxation year that are before January 1, 2009 to the total number of days in the taxation year,

(b) 0.675 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2008 and before January 1, 2010 to the total number of days in the taxation year,

(c) 0.45 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2009 and before January 1, 2011 to the total number of days in the taxation year, and

(d) 0.225 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2010 and before January 1, 2012 to the total number of days in the taxation year.

34.  (1)  Subsection 69 (1) of the Act, as amended by the Statutes of Ontario, 1999, chapter 9, section 91, 2001, chapter 23, section 45 and 2004, chapter 16, section 2, is repealed.

(2)  Paragraph 2 of subsection 69 (2) of the Act, as re-enacted by the Statutes of Ontario, 2002, chapter 22, section 52 and amended by 2002, chapter 22, section 52 and 2004, chapter 16, section 2, is repealed and the following substituted:

2. The amount, if any, determined using the formula,

A × (B - C)

in which,

"A" is the amount described in paragraph 3,

"B" is the amount described in paragraph 4 or 4.1, and

"C" is the amount described in paragraph 5 or 5.1 or the amount determined in accordance with subsection (2.1).

(3)  Paragraph 4 of subsection 69 (2) of the Act, as re-enacted by the Statutes of Ontario, 2002, chapter 22, section 52 and amended by 2004, chapter 16, section 2, is amended by striking out "the variable "B"" in the portion before the formula and substituting "the variable "B" for a taxation year ending before January 1, 2005".

(4)  Subsection 69 (2) of the Act, as re-enacted by the Statutes of Ontario, 1999, chapter 9, section 91 and amended by 2001, chapter 23, section 45, 2002, chapter 22, section 52 and 2004, chapter 16, section 2, is amended by adding the following paragraph:

4.1 For the purposes of paragraph 2, the variable "B" for a taxation year that ends after December 31, 2004 is the amount calculated using the formula,

D × E

in which,

"D" is the corporation's taxable paid-up capital or taxable paid-up capital employed in Canada, as the case may be, for the taxation year, and

"E" is the capital tax rate for the corporation for the taxation year, as determined under subsection 66 (1.1).

(5)  Paragraph 9 of subsection 69 (2) of the Act, as re-enacted by the Statutes of Ontario, 2002, chapter 22, section 52 and amended by 2004, chapter 16, section 2, is repealed and the following substituted:

9. For the purposes of the variable "GG" in paragraph 5.1, the applicable amount under this paragraph is calculated using the formula,

E × Q

in which,

"E" is the capital tax rate for the corporation for the taxation year, as determined under subsection 66 (1.1), and

"Q" is the lesser of,

(a) the amount determined under subsection 62.1 (10.1) for the taxation year, and

(b) the product of,

(i) the corporation's taxable paid-up capital or taxable paid-up capital employed in Canada, as the case may be, for the taxation year or, if the corporation is associated with one or more corporations in the taxation year that have a permanent establishment in Canada, the total of the taxable paid-up capital or taxable paid-up capital employed in Canada, as the case may be, of the corporation for the taxation year and of each such associated corporation for the last taxation year of the associated corporation ending during the corporation's taxation year, and

(ii) the ratio of the number of days in the taxation year that are after September 30, 2001 to the total number of days in the taxation year.

(6)  Subsection 69 (2.4) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 52 and amended by 2004, chapter 16, section 2, is repealed and the following substituted:

Net deduction of a corporation in the associated group

(2.4)  The net deduction of a corporation for a taxation year is the amount calculated using the formula,

A × (E × Z) × T/X

in which,

"A" is the corporation's Ontario allocation factor, as defined in subsection 12 (1), for the last taxation year ending in the calendar year preceding the calendar year in which the taxation year ends,

"E" is the capital tax rate for the corporation for the taxation year, as determined under subsection 66 (1.1),

"T" is the amount of the total assets of the corporation as recorded in its books and records for the last taxation year ending in the calendar year preceding the calendar year in which the taxation year ends,

"X" is the sum of the total assets of each corporation in the associated group as recorded in its books and records for the last taxation year ending in the calendar year preceding the calendar year in which the taxation year ends, and

"Z" is the amount for the taxation year determined under subsection 62.1 (10.1).

35.  Section 73.1 of the Act, as enacted by the Statutes of Ontario, 2001, chapter 23, section 47 and amended by 2004, chapter 16, section 2, is repealed and the following substituted:

Definitions

73.1  The following terms have the same meaning for the purposes of this Act as they have for the purposes of the Insurance Act:

1. Accident and sickness insurance.

2. Automobile insurance.

3. Fraternal society.

4. Life insurance.

5. Marine insurance.

6. Mutual benefit society.

7. Property insurance.

36.  (1)  Clause 74 (1) (a) of the Act, as re-enacted by the Statutes of Ontario, 1994, chapter 14, section 31 and amended by 2004, chapter 16, section 2, is amended by striking out "accident insurance, life insurance, sickness insurance" and substituting "accident and sickness insurance, life insurance".

(2)  The definition of "A" in subsection 74 (2) of the Act, as enacted by the Statutes of Ontario, 1992, chapter 3, section 15 and amended by 2004, chapter 16, section 2, is amended by striking out "within the meaning of the Insurance Act".

(3)  Subsection 74 (4) of the Act, as amended by the Statutes of Ontario, 2004, chapter 16, section 2, is amended by striking out "property insurance within the meaning of the Insurance Act and the regulations made thereunder" in the portion before clause (a) and substituting "property insurance".

(4)  Clause 74 (5) (b) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 14, section 31 and amended by 2004, chapter 16, section 2, is repealed and the following substituted:

(b) a fraternal society, and

(5)  Clauses 74 (7) (d) and (e) of the Act, as amended by the Statutes of Ontario, 2004, chapter 16, section 2, are repealed and the following substituted:

(d) by a fraternal society with respect to contracts entered into before January 1, 1974;

(e) by a mutual benefit society; or

(6)  Subsection 74 (8) of the Act, as amended by the Statutes of Ontario, 2004, chapter 16, section 2, is repealed.

37.  Clause 74.3 (2) (a) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule A, section 42 and amended by 2004, chapter 16, section 2, is amended by striking out "accident insurance or sickness insurance" and substituting "accident and sickness insurance".

38.  The definition of "A" in clause 76 (6) (b) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 34, section 52 and amended by 1998, chapter 34, section 52 and 2004, chapter 16, section 2, is amended by striking out "sections 43.2 to 43.12" and substituting "sections 43.2 to 43.13".

39.  (1)  Sub-subclause 78 (2) (b) (i) (B) of the Act, as re-enacted by the Statutes of Ontario, 2000, chapter 10, section 9 and amended by 2004, chapter 16, section 2, is amended by striking out "clauses 41 (3.2) (a) to (f)" and substituting "clauses 41 (3.2) (a) to (e)".

(2)  Subsection 78 (3) of the Act, as re-enacted by the Statutes of Ontario, 2000, chapter 10, section 9 and amended by 2004, chapter 16, section 2, is amended by striking out "clauses 41 (3.2) (a) to (f)" and substituting "clauses 41 (3.2) (a) to (e)".

(3)  Section 78 of the Act, as amended by the Statutes of Ontario, 1994, chapter 14, section 36, 1996, chapter 1, Schedule B, section 11, 1996, chapter 24, section 29, 1996, chapter 29, section 59, 1997, chapter 43, Schedule A, section 45, 1998, chapter 5, section 22, 1998, chapter 34, section 53, 2000, chapter 10, section 9, 2001, chapter 23, section 51 and 2004, chapter 16, section 2, is amended by adding the following subsection:

Amalgamations

(3.1)  For the purposes of subclause (2) (b) (i), where a new corporation is formed as a result of an amalgamation within the meaning of section 87 of the Income Tax Act (Canada), the following rules apply:

1. The new corporation shall be deemed to have had a taxation year of 365 days that ended immediately before the amalgamation and a taxable income for that taxation year equal to the sum of all amounts, each of which is the product obtained when the taxable income of a predecessor corporation (within the meaning assigned by section 87 of the Income Tax Act (Canada)) for its taxation year that ended immediately before the amalgamation is multiplied by the ratio that 365 days is of the number of days in that taxation year of the predecessor corporation.

2. Sub-subclause (2) (b) (i) (B) shall be applied with respect to the new corporation as if that sub-subclause read "its taxable income within the meaning of paragraph 1 of subsection (3.1) did not exceed the total of the amounts described in clauses 41 (3.2) (a) to (e) for that taxation year".

(4)  Clause 78 (4.3) (a) of the Act, as enacted by the Statutes of Ontario, 2001, chapter 23, section 51 and amended by 2004, chapter 16, section 2, is amended by striking out "sections 43.2 to 43.12" and substituting "sections 43.2 to 43.13".

(5)  Clause 78 (5) (b) of the Act, as re-enacted by the Statutes of Ontario, 1996, chapter 24, section 29 and amended by 1997, chapter 43, Schedule A, section 45, 1998, chapter 5, section 22, 1998, chapter 34, section 53 and 2004, chapter 16, section 2, is amended by striking out "sections 43.2 to 43.12" and substituting "sections 43.2 to 43.13".

(6)  Clause 78 (5.1) (b) of the Act, as enacted by the Statutes of Ontario, 2001, chapter 23, section 51 and amended by 2004, chapter 16, section 2, is amended by striking out "sections 43.2 to 43.12" and substituting "sections 43.2 to 43.13".

(7)  Clause 78 (6) (a) of the Act, as re-enacted by the Statutes of Ontario, 1998, chapter 34, section 53 and amended by 1998, chapter 34, section 53 and 2004, chapter 16, section 2, is amended by striking out "sections 43.2 to 43.12" and substituting "sections 43.2 to 43.13".

40.  (1)  Clause 80 (1) (b.1) of the Act, as re-enacted by the Statutes of Ontario, 1996, chapter 24, section 30 and amended by 1997, chapter 43, Schedule A, section 46, 1998, chapter 5, section 23, 1998, chapter 34, section 55 and 2004, chapter 16, section 2, is amended by striking out "section 43.2, 43.3, 43.4, 43.5, 43.6, 43.7, 43.8, 43.9, 43.10, 43.11 or 43.12" and substituting "any of sections 43.2 to 43.13".

(2)  Subsection 80 (30) of the Act, as enacted by the Statutes of Ontario, 2001, chapter 23, section 53 and amended by 2004, chapter 16, section 2, is amended by striking out the portion before paragraph 1 and substituting the following:

Application of s. 160 of Income Tax Act (Canada)

(30)  Section 160 of the Income Tax Act (Canada) applies for the purposes of this Act, to the extent that the section applies in respect of corporations, with the following exceptions:

. . . . .

41.  Clause 84 (7) (d) of the Act, as amended by the Statutes of Ontario, 2004, chapter 16, section 2, is amended by striking out "file an additional objection" and substituting "serve an additional objection".

42.  (1)  Clause 112 (1) (d.2) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 23, section 2 and amended by 2004, chapter 16, section 2, is repealed.

(2)  Clause 112 (1) (g) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 14, section 52 and amended by 2004, chapter 16, section 2, is amended by striking out "subsection 75 (16)" and substituting "subsection 75 (17)".

Commencement

43.  (1)  Subject to subsections (2) to (12), this Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

Same

(2)  Subsections 7 (1) and 29 (2) and (3) shall be deemed to have come into force on December 9, 2002.

Same

(3)  Subsections 15 (2) and 39 (1) and (2) shall be deemed to have come into force on January 1, 2003.

Same

(4)  Sections 17, 26 and 27 shall be deemed to have come into force on June 28, 1999.

Same

(5)  Subsection 20 (2) shall be deemed to have come into force on January 1, 2002.

Same

(6)  Subsections 20 (3) and 21 (1), (2), (3) and (5) shall be deemed to have come into force on May 7, 1997.

Same

(7)  Section 24 shall be deemed to have come into force on February 28, 2000.

Same

(8)  Subsections 28 (1), (3), (4), (5) and (6) and 29 (5) and section 31 shall be deemed to have come into force on May 18, 2004.

Same

(9)  Subsection 28 (2) shall be deemed to have come into force on May 20, 1993.

Same

(10)  Subsection 29 (1) shall be deemed to have come into force on December 5, 2001.

Same

(11)  Sections 35, 36 and 37 come into force on the day subsection 4 (1) of Schedule H to the Government Efficiency Act, 2002 comes into force.

Same

(12)  Subsection 39 (3) shall be deemed to have come into force on May 2, 2000.

SCHEDULE 10
AMENDMENTS TO THE EDUCATION ACT

1.  Section 257.12 of the Education Act, as enacted by the Statutes of Ontario, 1997, chapter 31, section 113 and amended by 1998, chapter 3, section 34, 1998, chapter 33, section 42, 1999, chapter 9, section 99, 2000, chapter 25, section 45, 2001, chapter 17, section 1, 2001, chapter 23, section 65, 2002, chapter 17, Schedule C, section 9, 2002, chapter 17, Schedule F, Table and 2002, chapter 22, section 58, is amended by adding the following subsection:

Application to whole year

(1.1.1)  A regulation under clause (1) (b) is effective for the whole year to which it applies, unless otherwise specified in the regulation.

2.  (1)  Clause 257.14 (1) (i) of the Act, as re-enacted by the Statutes of Ontario, 2002, chapter 8, Schedule A, section 2 and amended by 2002, chapter 17, Schedule F, Table, is repealed and the following substituted:

(i) providing, despite any provision of this Act, the Municipal Act, 2001, or the Provincial Land Tax Act, that boards and municipalities may levy or collect rates for a previous year in respect of property in territory without municipal organization, subject to conditions set out in the regulation. 

(2)  Subsection 257.14 (4) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 8, Schedule A, section 2, is repealed and the following substituted:

Retroactive

(4)  A regulation under clause (1) (i) may provide for the levying or collection of rates for any year that is after 1997.

Commencement

3.  This Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

SCHEDULE 11
AMENDMENTS TO THE ELECTRICITY ACT, 1998

1.  The definition of "municipal electricity utility" in section 88 of the Electricity Act, 1998, as amended by the Statutes of Ontario, 2000, chapter 42, section 30, is amended by adding the following clause:

(d.1) a corporation established after May 1, 2003 under Ontario Regulation 168/03 (Municipal Business Corporations) under the Municipal Act, 2001, for the purpose of acquiring, holding, disposing of and otherwise dealing with shares of a corporation incorporated by the municipal corporation under section 142 of this Act,

2.  (1)  Subsection 92 (5) of the Act is repealed.

(2)  Subsection 92 (8) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 102 and amended by 2004, chapter 16, Schedule D, Table, is repealed.

(3)  Subsection 92 (9) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 25, section 46, is repealed and the following substituted:

Non-application

(9)  This section, other than this subsection, does not apply to the following:

1. A hydro-electric generating station, as defined in subsection 92.1 (24), after December 31, 2000.

2. A wind turbine tower, as defined in subsection 45.4 (5) of Ontario Regulation 282/98 (General) made under the Assessment Act, after December 31, 2004.

3.  (1)  Subsection 92.1 (2) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 25, section 46, is repealed and the following substituted:

Payment to the Financial Corporation

(2)  Despite subsection (1), the owner of a hydro-electric generating station shall pay to the Financial Corporation a charge computed at the rates specified in subsection (4) on the gross revenue from annual generation from the hydro-electric generating station if the hydro-electric generating station is owned by a person referred to in subsection 92 (1) or was owned at any time after March 31, 1999 by a person referred to in subsection 92 (1).

(2)  Subsection 92.1 (7) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 25, section 46, is repealed and the following substituted:

Transitional

(7)  If, on December 31, 2000, the holder of a water power lease was not required to pay a hydro-electric charge as required under the Public Lands Act because the hydro-electric generating station had been in service for less than a specified period of time, subsection (5) does not apply for the remainder of that period, if any.

(3)  Subsection 92.1 (9) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 25, section 46 and amended by 2004, chapter 16, Schedule D, Table, is repealed.

(4)  Clauses 92.1 (21) (b), (c) and (e) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 25, section 46, are repealed and the following substituted:

(b) prescribing one or more methods for determining gross revenue for the purposes of this section;

. . . . .

(e) determining the annual generation for the purposes of subsections (4) and (5) pursuant to energy transfers or water transfers between a hydro-electric generating station in Ontario and a hydro-electric generating station in Ontario or in another jurisdiction;

4.  (1)  Subsection 94 (3) of the Act, as amended by the Statutes of Ontario, 2000, chapter 42, section 36, 2002, chapter 22, section 63 and 2004, chapter 16, Schedule D, Table, is amended by adding the following paragraph:

4. Any amount that the municipal electricity utility would be liable to pay as tax under Part I of the Income Tax Act (Canada) in respect of the taxation year if that tax were computed on the basis that the municipal electricity utility had no income during the taxation year other than an amount included in income under paragraph 14 (1) (b) of the Income Tax Act (Canada) in respect of the transfer of its interest in the property.

(2)  Section 94 of the Act, as amended by the Statutes of Ontario, 2000, chapter 42, section 36, 2002, chapter 22, section 63 and 2004, chapter 16, Schedule D, Table, is amended by adding the following subsections:

Refund

(7)  Amounts paid under this section in respect of a transfer may be refunded in accordance with the regulations if the proceeds of the transfer are reinvested in the prescribed manner.

Same

(7.1)  In such circumstances as may be prescribed, a municipal corporation or municipal electricity utility shall repay an amount refunded to it under subsection (7).

. . . . .

Same

(9.1)  Despite subsection (9), a transfer that does not comply with subsection (1) is not void if the municipal corporation or municipal electricity utility that made the transfer satisfies the prescribed conditions in respect of the transfer.

5.  Section 95 of the Act, as amended by the Statutes of Ontario, 1999, chapter 9, section 103 and 2004, chapter 16, Schedule D, Table, is repealed and the following substituted:

Application of Corporations Tax Act

95.  (1)  The Minister of Finance is responsible for enforcing the payment of amounts payable under this Part, including amounts payable under regulations made under this Part, and, for the purposes of this Part,

(a) except as otherwise prescribed by the regulations, Parts V and VI of the Corporations Tax Act apply with necessary modifications and with such changes as may be prescribed by the regulations to amounts payable under this Part after November 6, 1998, other than amounts payable under section 92 or 92.1;

(b) except as otherwise prescribed by the regulations, Divisions C, D, E and F of Part V and Part VI of the Corporations Tax Act apply with necessary modifications and with such changes as may be prescribed by the regulations to amounts payable under section 92 or 92.1 after November 6, 1998, including any penalties and interest on late payments;

(c) any amount payable under this Part after November 6, 1998, other than under section 94, that remains unpaid after it becomes due, including any penalties and interest on late payments, may be collected as if it were tax payable under the Corporations Tax Act.

Collection of amounts payable under s. 94

(2)  In the application of Parts V and VI of the Corporations Tax Act for the purposes of enforcing the payment of any amount under section 94,

(a) a reference to "a taxation year" or "the taxation year" shall be read as a reference to a transfer or a particular transfer, as the case may be;

(b) a reference to a return shall be read as a reference to any notice given to the Minister for the purposes of section 94; and

(c) a reference to a notice of assessment or reassessment shall be read as including a reference to correspondence prescribed by the regulations that is issued by the Minister for the purposes of section 94.

6.  Subsection 96 (1) of the Act, as amended by the Statutes of Ontario, 2000, chapter 42, section 38, is amended by adding the following clauses:

(e.2) governing refunds authorized by subsection 94 (7);

(e.3) prescribing circumstances for the purposes of subsection 94 (7.1);

(e.4) prescribing conditions in respect of a transfer for the purposes of subsection 94 (9.1);

. . . . .

(f.1) prescribing one or more provisions of Part V or VI of the Corporations Tax Act that do not apply in respect of an amount payable under one or more sections in this Part that are prescribed in the regulation;

(f.2) prescribing changes to provisions in Part V or VI of the Corporations Tax Act that apply in respect of an amount payable under one or more sections in this Part that are prescribed in the regulation, including,

(i) prescribing a change to a time limit for issuing an assessment or reassessment in respect of an amount payable under this Part after November 6, 1998, and

(ii) prescribing a change to a time limit for the payment of a refund of an overpayment in respect of a period after November 6, 1998;

7.  Section 142 of the Act, as amended by the Statutes of Ontario, 1999, chapter 14, Schedule F, section 3 and 2002, chapter 1, Schedule A, section 30, is amended by adding the following subsection:

Holding companies

(1.1)  A corporation that one or more municipal corporations caused to be incorporated under the Business Corporations Act after November 6, 1998 and before May 2, 2003 to acquire, hold, dispose of and otherwise deal with shares of a corporation that was incorporated pursuant to this section shall be considered to be a corporation incorporated pursuant to this section.

Commencement

8.  (1)  Subject to subsections (2), (3) and (4), this Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

Same

(2)  Section 1 shall be deemed to have come into force on May 2, 2003.

Same

(3)  Subsections 3 (1) and (2) shall be deemed to have come into force on January 1, 2001.

Same

(4)  Subsection 4 (1) shall be deemed to have come into force on November 7, 1998.

SCHEDULE 12
AMENDMENTS TO THE EMPLOYER HEALTH TAX ACT

1.  Section 1 of the Employer Health Tax Act, as amended by the Statutes of Ontario, 1994, chapter 8, section 1, 1994, chapter 17, section 57, 1996, chapter 18, section 4, 1996, chapter 24, section 1, 1998, chapter 34, sections 58 and 59, 1999, chapter 9, section 106, 2001, chapter 23, section 71, 2002, chapter 22, section 65 and 2004, chapter 16, Schedule D, Table, is amended by adding the following subsections:

Remuneration

(1.2)  The following rules apply in determining for the purposes of this Act the amount of remuneration or total Ontario remuneration paid by an employer:

1. An amount paid by the employer to a trustee or custodian, as the case may be, for the benefit of an employee under an employees profit sharing plan, employee benefit plan, employee trust or salary deferral arrangement is deemed to be remuneration paid by the employer to or on behalf of the employee if the amount, upon payment or allocation to the employee, is by reason of section 5, 6 or 7 of the Income Tax Act (Canada) required to be included in the income of a person under that Act.

2. An amount or benefit that is received or enjoyed, or deemed to be received or enjoyed, by an employee in respect of his or her employment with the employer and that is required to be included in the income of a person under the Income Tax Act (Canada) by reason of section 5, 6 or 7 of that Act is deemed to be remuneration paid by the employer to or on behalf of the employee.

3. The amount of a benefit referred to in paragraph 2 is deemed to be the amount that is required to be included in the income of a person under the Income Tax Act (Canada).

Rules for determining amount of total Ontario remuneration

(1.3)  For the purposes of the definition of "total Ontario remuneration" in subsection (1), the total remuneration paid to or on behalf of an employee who reports for work at a permanent establishment of an employer in Ontario at any time during a year includes all remuneration paid to or on behalf of the employee during the year, even if the employee also reports for work at a permanent establishment of the employer outside Ontario at any time during the year.

Exception

(1.4)  Despite subsection (1.3), no remuneration paid to or on behalf of an employee is included in an employer's total Ontario remuneration for a year if the Minister is satisfied that the employee reported for work at a permanent establishment of the employer outside Ontario for all or substantially all of the year.

Exception, application after 2001 only

(1.5)  Subsection (1.3) does not apply for any year before 2002 to a professional sports team that was a party to the application in the matter of Toronto Blue Jays Baseball Club v. Ontario (Minister of Finance), decided by the Ontario Superior Court of Justice on April 27, 2004.

2.  (1)  Subsection 2 (3.1) of the Act, as re-enacted by the Statutes of Ontario, 2001, chapter 23, section 72, is amended by striking out "in respect of the security" and substituting "in respect of the security or the agreement to sell or issue the security".

(2)  Subsection 2 (3.2) of the Act, as re-enacted by the Statutes of Ontario, 2001, chapter 23, section 72 and amended by 2004, chapter 16, Schedule D, Table, is amended by striking out "in respect of the security" and substituting "in respect of the security or the agreement to sell or issue the security".

(3)  Subsection 2 (3.3) of the Act, as re-enacted by the Statutes of Ontario, 2001, chapter 23, section 72 and amended by 2004, chapter 16, Schedule D, Table, is amended by striking out "with respect to the security" and substituting "in respect of the security or the agreement to sell or issue the security".

(4)  Subsection 2 (3.5) of the Act, as re-enacted by the Statutes of Ontario, 2001, chapter 23, section 72, is repealed and the following substituted:

Designated year

(3.5)  For the purposes of subsections (3.1) to (3.3), the designated year in respect of a security or an agreement to sell or issue a security is,

(a) the year in which the amount of the benefit is deemed to be received by the employee under paragraph 7 (1) (a) of the Income Tax Act (Canada), as that paragraph is modified by subsection 7 (1.1) of that Act, if that paragraph applies and if, at both the time the agreement to sell or issue the security is entered into and the time the security is acquired under the agreement,

(i) the person who agreed to sell or issue the security to the employee is a Canadian-controlled private corporation, within the meaning assigned by subsection 125 (7) of the Income Tax Act (Canada), and

(ii) the security is a share of the capital stock of a Canadian-controlled private corporation;

(b) the year in which the employee acquired the security, in any other case where paragraph 7 (1) (a) of the Income Tax Act (Canada) applies and clause (a) does not apply; or

(c) the year in which the amount of the benefit, other than a benefit deemed to be received under paragraph 7 (1) (a) of the Income Tax Act (Canada), is deemed to be received by the employee under section 7 of that Act, if that section, other than paragraph 7 (1) (a), applies.

3.  (1)  Subsection 2.2 (1) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 45, is repealed and the following substituted:

Exclusion of certain stock option benefits from remuneration

(1)  This section applies with respect to an employer for a year before 2010 if an amount is deemed to be remuneration paid by the employer to an employee under subsection 2 (3.1), (3.2) or (3.3) during the year.

(2)  Subsection 2.2 (3) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 45 and amended by 2001, chapter 23, section 73 and 2004, chapter 16, Schedule D, Table, is amended by striking out "and" at the end of clause (b), by adding "and" at the end of clause (c) and by adding the following clause:

(d) if the agreement is entered into before May 18, 2004.

4.  Section 5 of the Act, as amended by the Statutes of Ontario, 1994, chapter 8, section 5, 1996, chapter 24, section 4 and 2004, chapter 16, Schedule D, Table, is amended by adding the following subsection:

Demand for return

(1.0.1)  Every person who receives a written demand for a return from the Minister or from an officer of the Ministry shall deliver the return to the Minister.

5.  Subsection 30 (1) of the Act, as re-enacted by the Statutes of Ontario, 1996, chapter 29, section 7, is repealed and the following substituted:

Penalties, failure to deliver return

(1)  Every person who fails to deliver a return in respect of 2003 or a previous year at the time and in the manner required by this Act or the regulations shall pay a penalty, when assessed therefor, equal to 5 per cent of the amount determined under subsection 7 (1) or (2.1) to be the excess amount in respect of the year as of the date on which the return was required to be delivered, before taking into consideration the penalty imposed under this subsection, if the excess amount as of that date is at least $1,000.

Same, return 2004 and subsequent years

(1.1)  Subject to subsection (1.3), every person who fails to deliver a return in respect of 2004 or a subsequent year at the time and in the manner required by this Act or the regulations shall pay a penalty, when assessed therefor, in the amount calculated using the formula,

(0.05 × D) + M (0.01 × D)

in which,

"D" is the amount, if any, that is determined under subsection 7 (1) to be the excess amount in respect of the year as of the date on which the return was required to be delivered, before taking into consideration the penalty imposed under this subsection, and

"M" is the number of complete months, not exceeding 12, from the date on which the return was required to be delivered to the date on which it is delivered,

if the amount of "D" is at least $1,000.

Repeated failures to deliver a return

(1.2)  Subject to subsection (1.3), every person who fails to deliver a return in respect of 2004 or a subsequent year at the time and in the manner required by this Act or the regulations and who has received a demand for the return under subsection 5 (1.0.1) is liable to a penalty determined in accordance with the following formula, instead of a penalty under subsection (1.1), if, on or before the day on which the tax to which the return relates is assessed, a penalty was assessed against the person under subsection (1) or (1.1) or this subsection in respect of a return required to be delivered under this Act for any of the three previous years:

(0.10 × D) + MM (0.02 × D)

in which,

"D" has the same meaning as in subsection (1.1), and

"MM" is the number of complete months, not exceeding 20, from the date on which the return was required to be delivered to the date on which it is delivered,

if the amount of "D" is at least $1,000.

Exception

(1.3)  Subsections (1.1) and (1.2) do not apply,

(a) to an employer referred to in clause 3 (2) (b), if the total Ontario remuneration for the year was paid by the employer during May 2004 or an earlier month;

(b) to an employer who ceased to have a permanent establishment in Ontario on or before May 18, 2004; or

(c) to a person who is required to deliver a return under subsection 5 (7), if the taxpayer for whom the person is required to deliver the return became bankrupt on or before May 18, 2004.

Same

(1.4)  Subsection (1) applies, with necessary modifications, to a person described in subsection (1.3) if the person fails to deliver a return in respect of 2004 at the time and in the manner required by this Act or the regulations.

Commencement

6.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

Same

(2)  Section 1 shall be deemed to have come into force on January 1, 1990.

SCHEDULE 13
AMENDMENTS TO THE FINANCIAL ADMINISTRATION ACT

1.  Section 1.1 of the Financial Administration Act, as re-enacted by the Statutes of Ontario, 1996, chapter 18, section 24 and amended by 1999, chapter 9, section 112, is repealed and the following substituted:

Ontario Opportunities Fund

1.1  (1)  The Minister of Finance shall establish as part of the Public Accounts of Ontario an account to be known as the Ontario Opportunities Fund in which shall be recorded money paid to Ontario by any person for the purpose of deficit reduction, the retirement of any part of the indebtedness of Ontario or the purchase for cancellation of any securities issued by Ontario.

Application of amounts recorded

(2)  The amounts recorded in the Fund under subsection (1) shall be applied in the fiscal year in which they are recorded toward the reduction of the provincial deficit for that fiscal year or to the reduction of the outstanding indebtedness of Ontario in a fiscal year in which there is no provincial deficit.

Application of section

(3)  This section applies with respect to the fiscal year ended March 31, 2004 and to subsequent fiscal years.

2.  (1)  Subsection 11.6 (3) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 8, Schedule B, section 2, is repealed and the following substituted:

Accrual of liabilities

(3)  Despite section 11.2 and subsection (2), a liability that was incurred during a fiscal year but was not paid by the time the books of the Government of Ontario for the fiscal year are closed may be recorded as an expenditure and charged against an appropriation for the fiscal year if,

(a) the liability was incurred for a purpose authorized by the appropriation;

(b) the liability was less than or equal to the amount available under the appropriation immediately before the books of the Government of Ontario for the fiscal year are closed; and

(c) a statement of account for the liability is received by the Minister of Finance before the books of the Government of Ontario for the fiscal year are closed.

(2)  Subsection 11.6 (5) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 8, Schedule B, section 2, is repealed and the following substituted:

Reporting

(5)  If, before the books of the Government of Ontario for a fiscal year are closed, the Minister of Finance becomes aware that, during the fiscal year, the Crown incurred a liability to make a payment out of the Consolidated Revenue Fund that comes due after the end of the fiscal year but the liability cannot be charged to an appropriation for the fiscal year under subsection (3), the Public Accounts for that fiscal year shall include a statement to that effect.

(3)  Paragraph 2 of subsection 11.6 (7) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 8, Schedule B, section 2, is repealed and the following substituted:

2 The liability must be less than or equal to the amount available under the appropriation referred to in paragraph 1 immediately before the books of the Government of Ontario for the fiscal year are closed.

3.  The Act is amended by adding the following sections:

Payment of certain accrued liabilities

11.8  (1)  The Minister of Finance is authorized to make payments out of the Consolidated Revenue Fund during a fiscal year that begins on or after April 1, 2004 in satisfaction of liabilities incurred by the Crown before April 1, 2004 if,

(a) each payment is in satisfaction of part or all of a liability that is payable during the fiscal year in which the payment is made;

(b) each payment is not otherwise authorized by an Act of the Legislature;

(c) the purpose for which each payment is made satisfies the requirements of subsection (2); and

(d) the total of the payments are within the limits described in subsection (2).

Restriction

(2)  The payments authorized by subsection (1) shall only be made for the purposes to which the votes and items in the estimates and supplementary estimates for the fiscal year beginning on April 1, 2003 relate and shall be subject to the maximum amount set out in Column 5 of the following Table opposite the vote and item in Columns 3 and 4:

TABLE
MAXIMUM AMOUNTS

Column 1

Column 2

Column 3

Column 4

Column 5

 

Ministry

Vote

Item

Amount in dollars

1.

Attorney General

306

3

23,413,832

2.

Consumer and Business Services

802

2

440,709

3.

Management Board Secretariat

1805

2

204,883,616

4.

Community Safety and Correctional Services

2604

1

3,346,354

5.

Community Safety and Correctional Services

2606

1

11,784

6.

Transportation

2702

1

3,148,577

Exception

(3)  The estimates shall not include expenditures to be made on or after April 1, 2004 under the authority of this section.

Authorization of certain non-cash expenses

11.9  The Minister of Transportation is authorized to incur non-cash expenses in the amount of $34,560,777 for the purposes set out in Vote 2704, Item 2 of the estimates and supplementary estimates for the fiscal year beginning April 1, 2003.

4.  (1)  Subsection 16.5 (2) of the Act, as enacted by the Statutes of Ontario, 1996, chapter 29, section 3, is amended by adding "or" at the end of clause (a) and by striking out clauses (b) and (c) and substituting the following:

(b) any security, financial agreement or evidence of indebtedness, or class of securities, financial agreements or evidences of indebtedness, authorized in writing by the Minister of Finance for the investment by the ministry named in the authorization of funds from time to time held by that ministry outside the Consolidated Revenue Fund.

(2)  Subsection 16.5 (3) of the Act, as enacted by the Statutes of Ontario, 1996, chapter 29, section 3, is amended by striking out "or for the purpose of an investment pool described in clause (2) (b)" at the end.

Commencement

5.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

Same

(2)  Sections 1, 2 and 3 shall be deemed to have come into force on April 1, 2004.

SCHEDULE 14
AMENDMENT TO THE FINANCIAL SERVICES COMMISSION OF ONTARIO ACT, 1997

1.  Subsection 11 (1) of the Financial Services Commission of Ontario Act, 1997 is amended by striking out the portion before clause (a) and substituting the following:

Statement of priorities

(1)  Commencing with its 2005 fiscal year, the Commission shall, not later than 90 days after the start of each fiscal year, deliver to the Minister and publish in The Ontario Gazette,

. . . . .

Commencement

2.  This Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

SCHEDULE 15
AMENDMENTS TO THE FUEL TAX ACT

1.  Subsections 4.6 (1) and (2) of the Fuel Tax Act, as enacted by the Statutes of Ontario, 1991, chapter 49, section 4, are amended by striking out "a notarial copy" wherever it appears and substituting in each case "a true copy".

2.  Subsection 4.7 (2) of the Act, as enacted by the Statutes of Ontario, 1991, chapter 49, section 4, is amended by striking out "a notarial copy" and substituting "a true copy".

3.  The Act is amended by adding the following section:

Authority to stop and detain commercial fuel-powered motor vehicle

5.1  (1)  A person authorized by the Minister may, without a warrant, stop and detain a commercial fuel-powered motor vehicle and take one or more samples of fuel from the vehicle's fuel tank for the purpose of determining whether the fuel tank of the vehicle contains coloured fuel or unauthorized fuel.

Examination of documents if coloured fuel or unauthorized fuel found

(2)  If a person referred to in subsection (1) has reasonable and probable grounds for believing that a sample taken under that subsection from the fuel tank of a commercial fuel-powered motor vehicle contains coloured fuel or unauthorized fuel, the person may examine the following documents:

1. The driver's licence issued to the driver of the motor vehicle.

2. Any Commercial Vehicle Operator's Certificate issued under the Highway Traffic Act that is held by the operator.

3. Any documents of a type prescribed by the Minister that are in the driver's custody.

4. Any documents in the driver's custody that identify or confirm the identity of the operator or owner of the motor vehicle.

Authority to stop and detain interjurisdictional vehicle

(3)  Any person authorized by the Minister may, without a warrant, stop and detain a motor vehicle if the person has reasonable and probable grounds to believe that the motor vehicle is an interjurisdictional vehicle and may do the following for the purposes of determining whether the operator of the motor vehicle is an interjurisdictional carrier and has complied with section 4.13:

1. Inspect any registration decal on the motor vehicle.

2. Examine the driver's licence issued to the driver of the motor vehicle.

3. Examine any Commercial Vehicle Operator's Certificate issued under the Highway Traffic Act that is held by the operator.

4. Examine any documents of a type prescribed by the Minister that are in the driver's custody.

5. Examine any documents in the driver's custody that identify or confirm the identity of the operator or owner of the motor vehicle.

Offence, failure to stop, etc.

(4)  Every driver of a commercial fuel-powered motor vehicle or interjurisdictional vehicle who does any of the following is guilty of an offence and on conviction is liable to a fine of not less than $200 and not more than $1,000:

1. Fails to comply with a stop sign set up by a person authorized by the Minister under this section to stop the vehicle.

2. Fails to stop or remain stopped when signalled or requested to do so by a person authorized by the Minister under this section to stop and detain the vehicle.

3. Prohibits or otherwise interferes with the taking of a sample of fuel from the vehicle's fuel tank under subsection (1), if the vehicle is a commercial fuel-powered motor vehicle.

4. Fails to produce any document requested or required to be produced under subsection (2) or (3).

5. Operates an interjurisdictional vehicle for which a valid registration decal is required under the regulations without the decal affixed to the vehicle.

Definition

(5)  In this section,

"commercial fuel-powered motor vehicle" means a motor vehicle,

(a) that uses fuel for the purpose of generating power by internal combustion, and

(b) that is a commercial motor vehicle as defined in subsection 1 (1) of the Highway Traffic Act.

4.  (1)  Subsection 8 (6) of the Act, as re-enacted by the Statutes of Ontario, 1991, chapter 49, section 10, and clause 8 (7) (c) of the Act, as enacted by 1991, chapter 49, section 10, are amended by striking out "the notarial copy" wherever it appears and substituting in each case "the true copy".

(2)  Clauses 8 (10) (b) and 8 (14) (a) of the Act, as enacted by the Statutes of Ontario, 1991, chapter 49, section 10, are amended by striking out "a notarial copy" wherever it appears and substituting in each case "a true copy".

5.  Section 13 of the Act, as amended by the Statutes of Ontario, 1991, chapter 49, section 15, 1994, chapter 18, section 2, 1997, chapter 19, section 7, 1998, chapter 30, section 26, 2001, chapter 23, section 96 and 2002, chapter 22, section 81, is amended by adding the following subsections:

Exception, waiver of limitation

(10.2)  Despite subsection (10), the Minister may assess or reassess a person at any time if the person has filed with the Minister a waiver in a form approved by the Minister before the expiry of the time provided in that subsection.

Revocation of waiver

(10.3)  If a person files a waiver under subsection (10.2), the person may file a notice of revocation of the waiver in a form approved by the Minister.

Effect of revocation

(10.4)  If a person files a notice of revocation of the waiver under subsection (10.3), the Minister shall not issue an assessment or reassessment under subsection (10) in reliance on the waiver more than one year after the date on which the notice of revocation is filed.

6.  The Act is amended by adding the following section:

Disclosure of names and addresses

22.1  (1)  The Minister shall disclose the name and address of the following persons for purposes related to the administration of this Act and may impose conditions and restrictions with respect to the disclosure:

1. Each manufacturer who holds a registration certificate under subsection 2.1 (1).

2. Each collector who is designated under subsection 3 (1).

3. Each distributor who is designated under subsection 3.0.1 (1).

4. Each person who is registered under the Act as an importer.

5. Each person who is registered under the Act as an exporter.

6. Each person who is registered under the Act as a dyer.

7. Each person who is registered under the Act as an interjurisdictional transporter.

Exception

(2)  Despite subsection (1), the Minister shall not disclose a person's name or address if, in the Minister's opinion, the disclosure is not necessary for the purposes of this Act.

7.  Section 23 of the Act is repealed and the following substituted:

Interjurisdictional settlement of competing tax claims

23.  (1)  For the purpose of simplifying compliance with this Act and the administration and collection of the tax imposed by this Act, and in order to provide for reciprocal arrangements to settle competing claims for tax on the acquisition and use of fuel by persons carrying on business in more than one jurisdiction, the Minister may enter into an agreement, on such terms and conditions as are considered necessary and expedient, with another jurisdiction providing that tax paid to one jurisdiction on the acquisition there of fuel that is transferred to the other jurisdiction and that becomes liable to tax in the other jurisdiction under this Act or any similar legislation in force in the other jurisdiction may be paid by one jurisdiction to the other in reduction of the liability to the tax arising in the jurisdiction receiving the payment and in lieu of refunding the tax to the person who paid it and who became liable for the similar tax in the other jurisdiction.

Payment for services

(2)  An agreement entered into under subsection (1) may authorize payments to the other jurisdiction for services provided under the agreement and may authorize the other jurisdiction to deduct the amount of the payments from amounts payable to the Minister under the agreement.

Commencement

8.  This Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

SCHEDULE 16
AMENDMENTS TO THE GASOLINE TAX ACT

1.  (1)  Subsection 4.6 (1) of the Gasoline Tax Act, as enacted by the Statutes of Ontario, 1992, chapter 9, section 5, is amended,

(a) by striking out "the original or a notarial copy" and substituting "the original or a true copy"; and

(b) by striking out "the certificate or notarial copy" and substituting "the certificate or true copy".

(2)  Subsection 4.6 (2) of the Act, as enacted by the Statutes of Ontario, 1992, chapter 9, section 5, is amended by striking out "a notarial copy" and substituting "a true copy".

2.  Subsection 4.7 (2) of the Act, as enacted by the Statutes of Ontario, 1992, chapter 9, section 5, is amended by striking out "a notarial copy" and substituting "a true copy".

3.  (1)  Subsection 5 (6) of the Act, as enacted by the Statutes of Ontario, 1992, chapter 9, section 6, is amended by striking out "a notarial copy" and substituting "a true copy".

(2)  Clause 5 (7) (c) of the Act, as enacted by the Statutes of Ontario, 1992, chapter 9, section 6, is amended by striking out "the notarial copy" and substituting "the true copy".

(3)  Clause 5 (10) (b) of the Act, as enacted by the Statutes of Ontario, 1992, chapter 9, section 6, is amended by striking out "a notarial copy" and substituting "a true copy".

(4)  Clause 5 (14) (a) of the Act, as enacted by the Statutes of Ontario, 1992, chapter 9, section 6, is amended by striking out "a notarial copy" and substituting "a true copy".

4.  The Act is amended by adding the following section:

Authority to stop and detain qualified motor vehicle

10.3  (1)  Any person authorized by the Minister may, without a warrant, stop and detain a motor vehicle if the person has reasonable and probable grounds to believe that the motor vehicle is a qualified motor vehicle and may examine the following documents for the purposes of determining whether the operator of the motor vehicle is an interjurisdictional carrier and has complied with section 4.12:

1. The driver's licence issued to the driver of the motor vehicle.

2. Any Commercial Vehicle Operator's Certificate issued under the Highway Traffic Act that is held by the operator.

3. Any documents of a type prescribed by the Minister that are in the driver's custody.

4. Any documents in the driver's custody that identify or confirm the identity of the operator or owner of the motor vehicle.

Offence, failure to stop

(2)  Every driver of a qualified motor vehicle who does any of the following is guilty of an offence and on conviction is liable to a fine of not less than $200 and not more than $1,000:

1. Fails to comply with a stop sign set up by a person authorized by the Minister under this section to stop the vehicle.

2. Fails to stop or remain stopped when signalled or requested to do so by a person authorized by the Minister under this section to stop and detain the vehicle.

3. Fails to produce any document requested or required to be produced under subsection (1).

5.  Section 11 of the Act, as amended by the Statutes of Ontario, 1992, chapter 9, section 7, 1994, chapter 18, section 3, 1996, chapter 10, section 11, 1997, chapter 19, section 8, 1998, chapter 30, section 44, 2001, chapter 23, section 111 and 2002, chapter 22, section 90, is amended by adding the following subsections:

Exception, waiver of limitation

(5.1.1)  Despite subsection (5), the Minister may assess or reassess a person at any time if the person has filed with the Minister a waiver in a form approved by the Minister before the expiry of the time provided in subsection (5).

Revocation of waiver

(5.1.2)  If a person files a waiver under subsection (5.1.1), the person may file a notice of revocation of the waiver in a form approved by the Minister.

Effect of revocation

(5.1.3)  If a person files a notice of revocation of the waiver under subsection (5.1.2), the Minister shall not issue an assessment or reassessment under subsection (5) in reliance on the waiver more than one year after the date on which the notice of revocation is filed.

6.  Subsection 28.1 (1) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 18, section 3 and amended by 2001, chapter 23, section 117, is repealed and the following substituted:

Refund by collector, sale on reserve

(1)  A retailer who is eligible for the purposes of this subsection and sells gasoline to persons exempt from the payment of the tax imposed by this Act under paragraph 3 of subsection 9 (1) of Regulation 533 of the Revised Regulations of Ontario, 1990 (General) may apply to the Minister through the collector from whom the retailer purchased the gasoline for a refund of amounts paid on account of tax by the retailer in respect of the gasoline.

Eligible retailer

(1.1)  A retailer is eligible for the purposes of subsection (1) if the retailer carries on business,

(a) on a reserve, as defined in the Indian Act (Canada); or

(b) in an Indian Settlement located on Crown land, the Indian inhabitants of which are treated by the federal Department of Indian Affairs and Northern Development in the same manner as Indians residing on a reserve.

7.  The Act is amended by adding the following section:

Disclosure of names and addresses

31.1  (1)  The Minister shall disclose the name and address of the following persons for purposes related to the administration of this Act and may impose conditions and restrictions with respect to the disclosure:

1. Each manufacturer who holds a registration certificate under subsection 2.1 (1).

2. Each collector who is designated under subsection 3 (1).

3. Each person who is registered under the Act as an importer.

4. Each person who is registered under the Act as an exporter.

5. Each person who is registered under the Act as an interjurisdictional transporter.

Exception

(2)  Despite subsection (1), the Minister shall not disclose a person's name or address if, in the Minister's opinion, the disclosure is not necessary for the purposes of this Act.

8.  Section 32 of the Act is repealed and the following substituted:

Interjurisdictional settlement of competing tax claims

32.  (1)  For the purpose of simplifying compliance with this Act and the administration and collection of the tax imposed by this Act, and in order to provide for reciprocal arrangements to settle competing claims for tax on the acquisition and use of gasoline, aviation fuel or propane by persons carrying on business in more than one jurisdiction, the Minister may enter into an agreement, on such terms and conditions as are considered necessary and expedient, with another jurisdiction providing that tax paid to one jurisdiction on the acquisition there of gasoline, aviation fuel or propane that is transferred to the other jurisdiction and that becomes liable to tax in the other jurisdiction under this Act or any similar legislation in force in the other jurisdiction may be paid by one jurisdiction to the other in reduction of the liability to the tax arising in the jurisdiction receiving the payment and in lieu of refunding the tax to the person who paid it and who became liable for the similar tax in the other jurisdiction.

Payment for services

(2)  An agreement entered into under subsection (1) may authorize payments to the other jurisdiction for services provided under the agreement and may authorize the other jurisdiction to deduct the amount of the payments from amounts payable to the Minister under the agreement.

9.  Subsection 33 (2) of the Act, as amended by the Statutes of Ontario, 1991, chapter 13, section 8, 1992, chapter 9, section 22, 1996, chapter 10, section 15, 1997, chapter 19, section 8, 2001, chapter 23, section 119 and 2002, chapter 22, section 93, is amended by adding the following clause:

(k) governing the manner in which a refund referred to in subsection 28.1 (4) may be made.

Commencement

10.  This Schedule comes into force the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

SCHEDULE 17
AMENDMENT TO THE GO TRANSIT ACT, 2001

1.  Clause 35 (1.1) (b) of the GO Transit Act, 2001, as enacted by the Statutes of Ontario, 2003, chapter 7, section 8, is repealed and the following substituted:

(b) December 31, 2005.

Commencement

2.  This Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

SCHEDULE 18
AMENDMENTS TO THE HIGHWAY TRAFFIC ACT

1.  Subsection 7.2 (1) of the Highway Traffic Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 98, is amended by striking out "three years" and substituting "five years".

2.  Section 7.7 of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 98, is repealed and the following substituted:

Interest

Application

7.7  (1)  This section applies with respect to registration years that end on or after December 9, 2002.

Interest payable on unpaid fees and penalties

(2)  Interest is payable to the Minister on the amount of any unpaid fees and penalties owed to the Minister and on the amount of any unpaid fees and taxes owed to another member of the International Registration Plan and collected by Ontario pursuant to the Plan.

Same

(3)  Interest is payable for the period commencing on the day after the last day of the registration year for which the unpaid amount is owed until the date on which the unpaid amount, including interest, is paid.

Interest rate

(4)  Interest is to be calculated at the rate or rates determined in accordance with the regulations.

Waiver of interest

(5)  Despite subsection (2), the Minister may exempt a person from payment of part or all of the interest owing in respect of a registration year if the Minister is of the opinion that owing to special circumstances it is inequitable to charge and collect the whole amount of the interest.

Decision final

(6)  The Minister's decision under subsection (5) about whether to exempt a person from the payment of interest and the amount of the exemption, if any, is final and not subject to review.

Transition

(7)  Interest in respect of a period before the date on which the Budget Measures Act (Fall), 2004 receives Royal Assent is to be determined in accordance with this section as it reads on and after that date, and not in accordance with this section as it read before that date.

3.  (1)  Clause 7.15 (1) (d) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 98, is repealed and the following substituted:

(d) governing the calculation of interest for the purposes of section 7.7;

(2)  Section 7.15 of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 98, is amended by adding the following subsection:

Retroactive

(3)  A regulation made under clause (1) (d) is, if it so provides, effective with reference to a period before it was filed but not earlier than December 9, 2002.

Commencement

4.  This Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

SCHEDULE 19
AMENDMENTS TO THE INCOME TAX ACT

1.  (1)  Subsection 4.0.1 (23) of the Income Tax Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 51 and amended by 2004, chapter 16, section 3, is amended by striking out "taxation year" in the portion before the formula and substituting "taxation year ending before January 1, 2004".

(2)  Section 4.0.1 of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 51 and amended by 2001, chapter 8, section 37 and 2004, chapter 16, section 3, is amended by adding the following subsection:

Medical expense credit, 2004 and subsequent years

(23.1)  The amount of an individual's medical expense credit for a taxation year ending after December 31, 2003 is the amount calculated using the formula,

A × [(B - C) + D]

in which,

"A" is the lowest tax rate for the year,

"B" is the total of the individual's medical expenses in respect of the individual, the individual's spouse, the individual's common-law partner or a child of the individual who has not attained the age of 18 years before the end of the taxation year that are included in determining the individual's medical expense credit for the year under subsection 118.2 (1) of the Federal Act,

"C" is the lesser of $1,821 and 3 per cent of the individual's income for the year, and

"D" is the total of all amounts each of which,

(a) is in respect of a dependant of the individual, within the meaning assigned by subsection 118 (6) of the Federal Act, other than a child of the individual who has not attained the age of 18 years before the end of the taxation year, and

(b) is, in respect of the dependant, the lesser of $5,000 and the amount that would be determined by the formula "E - F" in subsection 118.2 (1) of the Federal Act, if the dollar amount set out in the description of "C" in this subsection were substituted for the dollar amount set out in the description of "F" in subsection 118.2 (1) of the Federal Act.

2.  (1)  Section 4.0.2 of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 52 and amended by 2001, chapter 8, section 38, 2003, chapter 7, section 11 and 2004, chapter 16, section 3, is repealed and the following substituted:

Annual adjustment

4.0.2  (1)  Subject to subsection (6), each amount expressed in dollars under the following provisions shall be adjusted in accordance with this section for each taxation year ending after December 31, 2000:

1. Subsections 3 (1), 4 (3), 4.0.1 (2) to (6), (8), (10), (11), (11.1), (18), (19), (20), (23) and 7 (2.4) and (2.5).

2. Paragraphs 118.2 (2) (b.1), (l.5) and (l.7) of the Federal Act, as they apply in determining the amount of an individual's medical expense credit deductible under paragraph 17 of subsection 4 (3.1).

Calculation of adjusted amount

(2)  Each amount referred to in subsection (1) shall be adjusted to the amount determined using the formula,

A + [A × (B/C - 1)]

in which,

"A" is the amount that would have been used for the previous taxation year if it had not been rounded to a whole dollar,

"B" is the Consumer Price Index for the 12-month period that ended on September 30 of the previous year, and

"C" is the Consumer Price Index for the 12-month period immediately preceding the 12-month period mentioned in the description of "B".

Same

(3)  For the purposes of subsection (2), the amount of "(B/C - 1)" shall be adjusted each year in such manner as may be prescribed and rounded to the nearest thousandth or, where the result obtained is equidistant, to the higher thousandth.

Rounding

(4)  Where an amount as adjusted under this section is not a multiple of one dollar, it shall be rounded to the nearest multiple of one dollar or, where it is equidistant, to the higher dollar.

Consumer Price Index

(5)  In this section, the Consumer Price Index for any 12-month period is the result arrived at by,

(a) aggregating the Consumer Price Index for Ontario as published by Statistics Canada under the authority of the Statistics Act (Canada), adjusted in such manner as is prescribed, for each month in that period;

(b) dividing the aggregate obtained under clause (a) by 12; and

(c) rounding the result obtained under clause (b) to the nearest one-thousandth or, where the result obtained is equidistant from two consecutive thousandths, to the higher thousandth.

Exceptions

(6)  The following amounts shall not be adjusted under this section:

1. The dollar amounts referred to in subsections 4.0.1 (5), (6), (11.1) and (18), as those subsections apply for a taxation year ending after December 31, 2000 and before January 1, 2002.

2. The dollar amounts referred to in a paragraph of subsection 3 (1) that are applicable for a taxation year ending before January 1, 2005.

3. The dollar amounts referred to in subsections 7 (2.4) and (2.5) that are applicable for a taxation year ending before January 1, 2005.

Regulations

(7)  The Lieutenant Governor in Council may make regulations prescribing rules governing the adjustment of dollar amounts in provisions of this Act not listed in subsection (1) or in provisions of the Federal Act that apply in determining amounts for the purposes of this Act.

(2)  Paragraph 1 of subsection 4.0.2 (1) of the Act, as re-enacted by subsection (1), is repealed and the following substituted:

1. Subsections 3 (1), 4 (3), 4.0.1 (2) to (6), (8), (10), (11), (11.1), (18), (19), (20), (23), (23.1) and 7 (2.4) and (2.5).

(3)  Subsection 4.0.2 (6) of the Act, as re-enacted by subsection (1), is amended by adding the following paragraph:

4. The dollar amounts referred to in subsection 4.0.1 (23.1) that apply for a taxation year ending before January 1, 2005.

3.  Section 4.1 of the Act, as re-enacted by the Statutes of Ontario, 2000, chapter 10, section 14 and amended by 2001, chapter 23, section 129, 2002, chapter 22, section 106 and 2004, chapter 16, section 3, is repealed and the following substituted:

Qualifying environmental trust

4.1  The amount of tax payable under section 2.1 by a qualifying environmental trust for a taxation year is equal to the product obtained by multiplying the amount of the trust's income for the taxation year that is subject to tax under Part XII.4 of the Federal Act by the percentage that would be the specified basic rate of a corporation for the taxation year as defined in subsection 38 (2) of the Corporations Tax Act.

4.  (1)  Subsection 7 (2.4) of the Act, as enacted by the Statutes of Ontario, 2001, chapter 23, section 130 and amended by 2002, chapter 22, section 107 and 2004, chapter 16, section 3, is repealed and the following substituted:

Basic reduction, 2002 and subsequent years

(2.4)  The basic reduction for a taxation year, commencing with 2002, is the following amount:

1. For the 2002 taxation year, $161.

2. For the 2003 taxation year, $181.

3. For the 2004 taxation year, $186.

4. For a taxation year after the 2004 taxation year, the amount determined by adjusting the basic reduction for the previous taxation year in accordance with section 4.0.2.

(2)  Subsection 7 (2.5) of the Act, as enacted by the Statutes of Ontario, 2001, chapter 23, section 130 and amended by 2004, chapter 16, section 3, is repealed and the following substituted:

Eligible amount, 2002 and subsequent taxation years

(2.5)  The eligible amount for a dependant described in subsection (2.2) for a taxation year, commencing with the 2002 taxation year, is the following amount:

1. For the 2002 taxation year, $328.

2. For the 2003 taxation year, $334.

3. For the 2004 taxation year, $343.

4. For a taxation year after the 2004 taxation year, the amount determined by adjusting the eligible amount for the dependant for the previous taxation year in accordance with section 4.0.2.

(3)  The definition of "tax otherwise payable" in subsection 7 (3) of the Act, as re-enacted by the Statutes of Ontario, 1993, chapter 29, section 5 and amended by 2004, chapter 16, section 3, is repealed and the following substituted:

"tax otherwise payable" for a taxation year means the amount of tax payable under this Act for the taxation year before any deduction permitted by subsection 4 (6) or under section 8 or this section. ("impôt payable par ailleurs")

(4)  Subsection (5) applies only if Bill 106 (Budget Measures Act, 2004 (No. 2), introduced on June 21, 2004) receives Royal Assent.

(5)  The definition of "tax otherwise payable" in subsection 7 (3) of the Act, as re-enacted by subsection (3) and by section 8 of Bill 106, is repealed and the following substituted:

"tax otherwise payable" for a taxation year means the amount of tax payable under this Act for the taxation year, other than the Ontario Health Premium, before any deduction permitted by subsection 4 (6) or under section 8 or this section. ("impôt payable par ailleurs")

5.  (1)  Clause (c) of the definition of "individual" in subsection 8 (1) of the Act, as amended by the Statutes of Ontario, 1992, chapter 18, section 55, 1993, chapter 29, section 6, 1996, chapter 1, Schedule C, section 8, 1996, chapter 29, section 9, 1997, chapter 43, Schedule B, section 4, 1998, chapter 34, section 69, 2001, chapter 23, section 131 and 2004, chapter 16, section 3, is amended by striking out "(15.5) and (15.6)" in the portion before subclause (i) and substituting "(15.5), (15.6) and (16)".

(2)  Clause (c) of the definition of "individual" in subsection 8 (1) of the Act, as amended by the Statutes of Ontario, 1992, chapter 18, section 55, 1993, chapter 29, section 6, 1996, chapter 1, Schedule C, section 8, 1996, chapter 29, section 9, 1997, chapter 43, Schedule B, section 4, 1998, chapter 34, section 69, 2001, chapter 23, section 131 and 2004, chapter 16, section 3, is amended by striking out "(15.6) and (16)" and substituting "(15.6), (16) and (16.1)".

(3)  Subsection 8 (3.1) of the Act, as enacted by the Statutes of Ontario, 1992, chapter 25, section 3 and amended by 1993, chapter 29, section 6, 2001, chapter 23, section 131, 2003, chapter 4, section 11, 2003, chapter 7, section 12 and 2004, chapter 16, section 3, is amended by striking out "$1,000" in the portion before clause (a) and substituting "$1,125".

(4)  Subclause 8 (3.1) (a) (i) of the Act, as re-enacted by the Statutes of Ontario, 2003, chapter 7, section 12 and amended by 2004, chapter 16, section 3, is amended by striking out "$500" and substituting "$625".

(5)  Subsection 8 (15.1) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule B, section 4 and amended by 2004, chapter 16, section 3, is repealed and the following substituted:

Graduate transitions tax credit

(15.1)  An individual who is an eligible employer for a taxation year ending after December 31, 1997 and before January 1, 2005 may deduct from tax otherwise payable under this Act for the taxation year an amount not exceeding the employer's graduate transitions tax credit determined under section 8.1 for the taxation year.

(6)  Subsection 8 (15.2) of the Act, as re-enacted by the Statutes of Ontario, 1998, chapter 34, section 69 and amended by 2004, chapter 16, section 3, is repealed and the following substituted:

Workplace child care tax credit

(15.2)  An individual who is an eligible individual under section 8.3 for a taxation year ending after December 31, 1997 and before January 1, 2005 may deduct from tax otherwise payable under this Act for the taxation year an amount not exceeding the amount of his or her workplace child care tax credit determined under section 8.3 for the taxation year.

(7)  Subsection 8 (15.3) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 34, section 69 and amended by 2004, chapter 16, section 3, is repealed and the following substituted:

Workplace accessibility tax credit

(15.3)  An individual who is an eligible employer under section 8.4 for a taxation year ending after December 31, 1997 and before January 1, 2005 may deduct from tax otherwise payable under this Act for the taxation year an amount not exceeding the amount of his or her workplace accessibility tax credit determined under section 8.4 for the taxation year.

(8)  Subsection 8 (15.4) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 55 and amended by 2004, chapter 16, section 3, is repealed and the following substituted:

Educational technology tax credit

(15.4)  An individual who is an eligible individual under section 8.4.1 for a taxation year ending after December 31, 1999 and before January 1, 2005 may deduct from the amount of tax otherwise payable under this Act for the taxation year an amount not exceeding the amount of his or her educational technology tax credit determined under that section for the taxation year.

(9)  Section 8 of the Act, as amended by the Statutes of Ontario, 1992, chapter 18, section 55, 1992, chapter 25, section 3, 1993, chapter 29, section 6, 1994, chapter 17, section 99, 1996, chapter 1, Schedule C, section 8, 1996, chapter 24, section 13, 1996, chapter 29, section 9, 1997, chapter 19, section 9, 1997, chapter 43, Schedule B, section 4, 1998, chapter 5, section 3, 1998, chapter 9, section 81, 1998, chapter 34, section 69, 1999, chapter 9, section 120, 2000, chapter 42, section 55, 2001, chapter 8, section 40, 2001, chapter 23, section 131, 2002, chapter 22, section 108, 2003, chapter 4, section 11, 2003, chapter 7, section 12 and 2004, chapter 16, section 3, is amended by adding the following subsection:

Apprenticeship training tax credit

(16.1)  An individual who is an eligible employer under section 8.4.5 may deduct from the amount of tax otherwise payable under this Act for a taxation year ending after May 18, 2004 an amount not exceeding the amount of his or her apprenticeship training tax credit determined under section 8.4.5 for the taxation year.

(10)  Paragraph 2 of subsection 8 (17) of the Act, as re-enacted by the Statutes of Ontario, 2001, chapter 23, section 131 and amended by 2002, chapter 22, section 108 and 2004, chapter 16, section 3, is amended by striking out "and (16)" and substituting "(16) and (16.1)".

(11)  Paragraph 3 of subsection 8 (17) of the Act, as re-enacted by the Statutes of Ontario, 2001, chapter 23, section 131 and amended by 2002, chapter 22, section 108 and 2004, chapter 16, section 3, is amended by striking out "and (16)" and substituting "(16) and (16.1)".

(12)  Paragraph 7 of subsection 8 (17) of the Act, as re-enacted by the Statutes of Ontario, 2001, chapter 23, section 131 and amended by 2002, chapter 22, section 108 and 2004, chapter 16, section 3, is amended by striking out "and (16)" and substituting "(16) and (16.1)".

(13)  Paragraph 8 of subsection 8 (17) of the Act, as re-enacted by the Statutes of Ontario, 2001, chapter 23, section 131 and amended by 2002, chapter 22, section 108 and 2004, chapter 16, section 3, is amended by striking out "and (16)" and substituting "(16) and (16.1)".

6.  (1)  Paragraph 2 of subsection 8.1 (2) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule B, section 5 and amended by 2004, chapter 16, section 3, is amended by striking out "commenced after December 31, 1997" and substituting "commenced after December 31, 1997 and before July 5, 2004".

(2)  Paragraph 3 of subsection 8.1 (2) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule B, section 5 and amended by 2004, chapter 16, section 3, is amended by striking out "commenced after December 31, 1997" and substituting "commenced after December 31, 1997 and before July 5, 2004".

(3)  Paragraph 4 of subsection 8.1 (2) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule B, section 5 and amended by 2004, chapter 16, section 3, is amended by striking out "commenced after December 31, 1997" and substituting "commenced after December 31, 1997 and before July 5, 2004".

(4)  Clause 8.1 (7) (a) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 43, Schedule B, section 5 and amended by 2004, chapter 16, section 3, is amended by striking out "commenced after May 6, 1997" and substituting "commenced after May 6, 1997 and before July 5, 2004".

7.  (1)  Clause 8.3 (2) (a) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 34, section 72 and amended by 2004, chapter 16, section 3, is amended by striking out "after May 5, 1998" in the portion before subclause (i) and substituting "after May 5, 1998 and before January 1, 2005".

(2)  Clause 8.3 (2) (b) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 34, section 72 and amended by 2004, chapter 16, section 3, is amended by striking out "after May 5, 1998" in the portion before subclause (i) and substituting "after May 5, 1998 and before January 1, 2005".

8.  (1)  Paragraph 1 of subsection 8.4 (1) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 34, section 73 and amended by 2004, chapter 16, section 3, is repealed and the following substituted:

1. The amount, if any, incurred by the employer in the taxation year but after July 1, 1998 and before January 1, 2005 to provide during a job interview in Ontario the support services of a sign language interpreter, an intervenor, a note-taker, a reader or an attendant.

(2)  Subsection 8.4 (4) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 34, section 73 and amended by 2004, chapter 16, section 3, is amended by striking out "after July 1, 1998" in the portion before paragraph 1 and substituting "after July 1, 1998 and before January 1, 2005".

(3)  Clause 8.4 (6) (c) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 34, section 73 and amended by 2004, chapter 16, section 3, is repealed and the following substituted:

(c) is employed by the employer or the partnership for a period of at least three months before January 1, 2005;

9.  Subsection 8.4.1 (1) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 56 and amended by 2004, chapter 16, section 3, is amended by striking out "tax credit for a taxation year" and substituting "tax credit for a taxation year ending after May 2, 2000 and before January 1, 2005".

10.  The Act is amended by adding the following section:

Apprenticeship training tax credit

8.4.5  (1)  The amount of an eligible employer's apprenticeship training tax credit for a taxation year is the total of all amounts each of which is calculated under subsection (3) in respect of the employer's eligible expenditures under this section for the taxation year for each apprentice employed in a qualifying apprenticeship.

Eligible employer

(2)  For the purposes of this section, an individual is an eligible employer in respect of a taxation year if he or she,

(a) carries on business through a permanent establishment in Ontario in the taxation year; and

(b) is not exempt from tax under section 6.

Calculation of credit

(3)  The amount referred to in subsection (1) in respect of an eligible employer's eligible expenditures for a taxation year for an apprentice employed in a qualifying apprenticeship is the total of "A" and "B" where,

"A" is the lesser of,

(a) the product obtained by multiplying the employer's specified percentage for the taxation year by the employer's eligible expenditures made during the taxation year for the apprentice employed in the qualifying apprenticeship, and

(b) the amount calculated using the formula,

$5,000 × C/D

in which,

"C" is the total number of days after May 18, 2004 and before January 1, 2011 that the apprentice was employed by the employer during the taxation year, and

"D" is 365 days or, if the taxation year includes February 29, 366 days, and

"B" is the amount calculated by multiplying the amount of government assistance repaid by the employer in the taxation year by the employer's specified percentage for the taxation year in which the government assistance was received, to the extent that the repayment does not exceed the amount of the government assistance previously received by the employer in respect of the qualifying apprenticeship that,

(a) has not been repaid in a prior taxation year, and

(b) can reasonably be considered to have reduced the amount of the apprenticeship training tax credit that would otherwise have been allowed to the employer under subsection 8 (16.1) in respect of the qualifying apprenticeship.

Specified percentage

(4)  An employer's specified percentage for a taxation year is the following:

1. 25 per cent if the total of all salaries or wages paid by the employer in the previous taxation year is $600,000 or more.

2. The percentage determined under subsection (5) if the total of all salaries or wages paid by the employer in the previous taxation year is greater than $400,000 but less than $600,000.

3. 30 per cent in any other case.

Same

(5)  The percentage referred to in paragraph 2 of subsection (4) is calculated by adding 25 per cent and the percentage calculated using the formula,

5% × [1 - (E/200,000)]

in which,

"E" is the total amount of salaries and wages paid by the employer in the previous taxation year that is in excess of $400,000.

Qualifying apprenticeship

(6)  For the purposes of this section, a qualifying apprenticeship is an apprenticeship that would be a qualifying apprenticeship for the purposes of section 43.13 of the Corporations Tax Act if the employer of the apprentice were a corporation rather than an individual.

End of apprenticeship

(7)  For the purposes of this section, a qualifying apprenticeship shall be deemed to end on the earlier of the date on which the apprentice is entitled to receive the appropriate certificate under the Apprenticeship and Certification Act, 1998 or the Trades Qualification and Apprenticeship Act or the date, if any, on which the training agreement or contract of apprenticeship is cancelled by the Ministry of Training, Colleges and Universities.

Eligible expenditures

(8)  Subject to subsections (10) and (11), the amount paid by an employer to an apprentice employed in a qualifying apprenticeship is an eligible expenditure for a taxation year if all of the following conditions are satisfied:

1. The expenditure is on account of salary or wages paid to an employee who reports for work at a permanent establishment of the employer in Ontario.

2. Subdivision a of Division B of Part I of the Federal Act requires the amount paid to the apprentice to be included in the apprentice's income from a source that is an office or employment.

3. The expenditure is in respect of a qualifying apprenticeship and is paid after May 18, 2004 and before January 1, 2011.

4. The apprentice is in the first 36 months of the apprenticeship training program.

Same

(9)  Subject to subsections (10) and (11), such other expenditures as may be prescribed are eligible expenditures of an employer for a taxation year if the prescribed conditions are satisfied.

Exception

(10)  An expenditure made by an employer in respect of a qualifying apprenticeship is not an eligible expenditure,

(a) if the apprentice serves the apprenticeship with a person other than the employer; or

(b) to the extent that the amount of the expenditure would not be considered to be reasonable in the circumstances by persons dealing with each other at arm's length.

Total eligible expenditures

(11)  The total of eligible expenditures made by an employer in respect of a qualifying apprenticeship in a taxation year is calculated using the formula,

F - G

in which,

"F" is the sum of the amounts determined under subsections (8) and (9), and

"G" is the amount of all government assistance, if any, that the employer has received, is entitled to receive or may reasonably be expected to be entitled to receive in respect of the eligible expenditures at the time the employer's return for the taxation year is required to be delivered under this Act.

Partnerships

(12)  If an eligible employer is a member of a partnership at the end of a taxation year and if the partnership incurs, in a fiscal period of the partnership that ends in the taxation year, an expenditure that would be included in computing the apprenticeship training tax credit of the employer if the expenditure had been incurred by the employer, the eligible employer who is a member of the partnership may include, in determining the amount of his or her apprenticeship training tax credit, that portion of the expenditure that may reasonably be attributed to him or her.

Limited partner

(13)  Subsection (12) does not apply if the eligible employer is a limited partner in the partnership.

Definition

(14)  In this section,

"government assistance" means assistance from a government, municipality or other public authority in any form, including a grant, subsidy, forgivable loan, deduction from tax or investment allowance, but does not include an apprenticeship training tax credit under subsection 8 (16.1) or any other amount that may be prescribed.

11.  (1)  Subsection 8.6 (1.1) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 57 and amended by 2004, chapter 16, section 3, is amended by striking out "section 8.7" in the portion before clause (a) and substituting "section 8.7 or 8.9".

(2)  Subsection 8.6 (2) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 34, section 74 and amended by 2000, chapter 42, section 57 and 2004, chapter 16, section 3, is amended by striking out "this section and section 8.5 or 8.7" in the portion before clause (a) and substituting "this section or section 8.5, 8.7 or 8.9".

12.  (1)  Subsection 8.7 (1) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 58 and amended by 2001, chapter 23, section 134 and 2004, chapter 16, section 3, is amended by striking out "on account of tax payable under this Act for a taxation year" in the portion before paragraph 1 and substituting "on account of tax payable under this Act for a taxation year ending before January 1, 2010".

(2)  The definition of "A" in subsection 8.7 (2) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 58 and amended by 2004, chapter 16, section 3, is repealed and the following substituted:

"A" is the amount of tax payable under this Act by the individual for the taxation year before any refund under this section or tax incentive under section 8.9, and

(3)  Subsection 8.7 (14.1) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 111 and amended by 2004, chapter 16, section 3, is amended by striking out "after December 21, 2000" in the portion before clause (a) and substituting "after December 21, 2000 and before May 18, 2004".

(4)  Clause (a) of the definition of "eligible stock option agreement" in subsection 8.7 (41) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 58 and amended by 2004, chapter 16, section 3, is amended by striking out "after the day the Balanced Budgets for Brighter Futures Act, 2000 receives Royal Assent" and substituting "after December 21, 2000 and before May 18, 2004".

13.  The definition of "Authority" in subsection 8.9 (1) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 112 and amended by 2004, chapter 16, section 3, is repealed and the following substituted:

"Authority" means the Ontario Strategic Infrastructure Financing Authority continued by subsection 2 (1) of the Ontario Strategic Infrastructure Financing Authority Act, 2002; ("Office")

14.  Subsection 10 (1.1) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 59 and amended by 2004, chapter 16, section 3, is repealed and the following substituted:

Application of s. 152 of the Federal Act

(1.1)  Subsection 152 (1) of the Federal Act applies to a refund under section 8.7 and a tax incentive under section 8.9.

15.  (1)  Subsection 22.1 (1) of the Act, as re-enacted by the Statutes of Ontario, 2000, chapter 42, section 63 and amended by 2004, chapter 16, section 3, is repealed and the following substituted:

Objection, deemed overpayment

(1)  An individual may object to a determination made under section 8.5 or 8.7 or subsection 10 (4) or the determination of a tax incentive under section 8.9 by serving on the Provincial Minister a notice of objection in a form approved by the Provincial Minister.

(2)  Subsection 22.1 (3) of the Act, as re-enacted by the Statutes of Ontario, 2000, chapter 42, section 63 and amended by 2004, chapter 16, section 3, is repealed and the following substituted:

Issues on objection

(3)  In an objection under subsection (1), the individual may raise issues about the following matters only:

1. Whether the individual is entitled to a refund under section 8.7 or a tax incentive under section 8.9.

2. The residence of the individual, if the subject of the objection is an Ontario child care supplement for working families under section 8.5, a refund under section 8.7 or a tax incentive under section 8.9.

3. The calculation of the amount to which the individual is entitled under section 8.5, 8.7 or 8.9 or the determination of amounts used in the calculation, but not the calculation of an amount determined under the Federal Act or determined by reference to an amount determined under the Federal Act.

16.  (1)  Clause 43 (a) of the Act, as re-enacted by the Statutes of Ontario, 1998, chapter 34, section 83 and amended by 2000, chapter 42, section 64 and 2004, chapter 16, section 3, is amended by adding "or regulations made under section 8.9" after "under section 8.5, 8.6 or 8.7".

(2)  Subclause 43 (b) (iii) of the Act, as re-enacted by the Statutes of Ontario, 2000, chapter 42, section 64 and amended by 2004, chapter 16, section 3, is amended by striking out "section 8.5 or 8.7" and substituting "section 8.5, 8.7 or 8.9".

(3)  Clause 43 (f) of the Act, as re-enacted by the Statutes of Ontario, 1998, chapter 34, section 83 and amended by 2000, chapter 42, section 64 and 2004, chapter 16, section 3, is repealed and the following substituted:

(f) a fine of not less than 50 per cent and not more than 200 per cent of the amount of the tax that was sought to be evaded, the amount of the tax credit sought under section 8 or the amount sought under section 8.5, 8.7 or 8.9, as applicable; or

17.  (1)  Subsection 49 (5) of the Act, as re-enacted by the Statutes of Ontario, 2000, chapter 42, section 65 and amended by 2004, chapter 16, section 3, is repealed and the following substituted:

Exception

(5)  Subsections (3) and (4) do not apply to the employment of powers, the exercise of discretion or the performance of duties under any section of this Act relating to the following or to any proceedings in connection with the following:

1. An Ontario child care supplement for working families under section 8.5.

2. A refund under section 8.7.

3. A tax incentive under section 8.9.

(2)  Section 49 of the Act, as amended by the Statutes of Ontario, 1993, chapter 29, section 2, 1999, chapter 9, section 131, 2000, chapter 42, section 65 and 2004, chapter 16, section 3, is amended by adding the following subsection:

Payment of fees under collection agreement

(6)  All fees and other amounts payable to the Government of Canada under a collection agreement are a charge upon and payable out of the Consolidated Revenue Fund.

Commencement

18.  (1)  Subject to subsections (2) to (9), this Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

Same

(2)  Section 1 and subsections 2 (2) and (3) come into force on a day to be named by proclamation of the Lieutenant Governor.

Same

(3)  Subsection 2 (1) shall be deemed to have come into force on January 1, 2002.

Same

(4)  Subsections 4 (1) and (2), 5 (5), (6), (7) and (8) and sections 7, 8 and 9 come into force on January 1, 2005.

Same

(5)  Subsections 4 (3), (4) and (5) and 5 (3) and (4) shall be deemed to have come into force on January 1, 2004.

Same

(6)  Subsection 5 (1) shall be deemed to have come into force on June 18, 2002.

Same

(7)  Subsections 5 (2), (9), (10), (11), (12) and (13), section 10 and subsections 12 (1), (3) and (4) shall be deemed to have come into force on May 18, 2004.

Same

(8)  Section 6 shall be deemed to have come into force on July 5, 2004.

Same

(9)  Section 11, subsection 12 (2), sections 14, 15 and 16 and subsection 17 (1) shall be deemed to have come into force on March 27, 2003.

SCHEDULE 20
AMENDMENTS TO THE INSURANCE ACT

1.  The definition of "due application" in section 1 of the Insurance Act is repealed and the following substituted:

"due application" includes such information, evidence and material as the Superintendent requires to be furnished and the payment of the fees established by the Minister in respect of any application, certificate or document required or issued by virtue of this Act; ("demande régulière")

2.  Subsection 23 (2) of the Act, as amended by the Statutes of Ontario, 1997, chapter 19, section 10, is amended by striking out "such fees as are approved by the Minister" and substituting "such fees as may be established by the Minister".

3.  Subsection 28 (2) of the Act is amended by striking out "prescribed fee" and substituting "fee established by the Minister".

4.  Subsection 102 (1) of the Act, as amended by the Statutes of Ontario, 1994, chapter 11, section 337 and 1997, chapter 19, section 10, is amended by striking out "sections 370 and 374" in the portion before clause (a) and substituting "section 370".

5.  Section 105 of the Act is amended by striking out "the form prescribed by the regulations" and substituting "the form approved by the Superintendent".

6.  Subsection 121 (1) of the Act, as amended by the Statutes of Ontario, 1993, chapter 10, section 12, 1994, chapter 11, section 338, 1996, chapter 21, section 14, 1997, chapter 19, section 10, 1997, chapter 28, section 107, 1999, chapter 12, Schedule I, section 4, 2000, chapter 26, Schedule G, section 1, 2002, chapter 18, Schedule H, section 4 and 2002, chapter 22, section 114, is amended by adding the following paragraph:

1. prescribing limitations and conditions for the purpose of subsection 43 (4);

7.  The definition of "nuclear energy hazard" in subsection 255 (1) of the Act is repealed and the following substituted:

"nuclear energy hazard" means the radio-active, toxic, explosive or other hazardous properties of nuclear substances under the Nuclear Safety and Control Act (Canada).

8.  (1)  Subsections 393 (3) and (6) of the Act are amended by striking out "the prescribed fee" wherever it appears and substituting in each case "the fee established by the Minister".

(2)  Subsection 393 (11) of the Act, as amended by the Statutes of Ontario, 1994, chapter 11, section 339, is repealed and the following substituted:

Term of licence

(11)  A licence issued under this section,

(a) expires at such time as the regulations provide unless it is automatically suspended by notice under subsection (6) or is revoked or suspended by the Superintendent; and

(b) may, in the discretion of the Superintendent, be renewed upon due application in a form approved by the Superintendent that includes such information as the Superintendent may require, accompanied by a certificate of agency appointment of a licensed insurer and payment of the fee established by the Minister.

9.  Subsections 397 (1) and (4) of the Act are amended by striking out "the prescribed fee" wherever it appears and substituting in each case "the fee established by the Minister".

10.  Subsection 399 (2) of the Act is amended by striking out "the prescribed fee" and substituting "the fee established by the Minister".

11.  Subsection 400 (7) of the Act is amended by striking out "the prescribed fee" and substituting "the fee established by the Minister".

12.  (1)  Subsection 417.0.1 (2) of the Act, as enacted by the Statutes of Ontario, 2004, chapter 11, section 1, is amended by adding the following paragraph:

4. An ambulance.

(2)  Subsection 417.0.1 (5) of the Act, as enacted by the Statutes of Ontario, 2004, chapter 11, section 1, is amended by adding the following definition:

"ambulance" means an ambulance as defined in subsection 1 (1) of the Ambulance Act; ("ambulance")

13.  Regulation 666 of the Revised Regulations of Ontario, 1990, made under the Insurance Act, is revoked.

Commencement

14.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

Same

(2)  Sections 6 and 13 come into force on the day subsection 4 (1) of Schedule H to the Government Efficiency Act, 2002 comes into force.

SCHEDULE 21
AMENDMENTS TO THE LAND TRANSFER TAX ACT

1.  (1)  The definition of "collector" in subsection 1 (1) of the Land Transfer Tax Act is repealed.

(2)  Subsection 1 (1) of the Act, as amended by the Statutes of Ontario, 1994, chapter 18, section 4, 1996, chapter 18, section 7, 1996, chapter 29, section 16, 1997, chapter 10, section 8, 1999, chapter 6, section 32, 2000, chapter 42, section 67 and 2002, chapter 22, section 134, is amended by adding the following definitions:

"designated collector" means a person designated under subsection 5.1 (1); ("percepteur désigné")

"land registrar" means a land registrar to whom a conveyance is tendered for registration; ("registrateur")

(3)  Section 1 of the Act, as amended by the Statutes of Ontario, 1994, chapter 18, section 4, 1996, chapter 18, section 7, 1996, chapter 29, section 16, 1997, chapter 10, section 8, 1998, chapter 5, section 29, 1999, chapter 6, section 32, 2000, chapter 42, section 67 and 2002, chapter 22, section 134, is amended by adding the following subsection:

Tendering for registration

(1.1)  For the purposes of this Act, a conveyance that is an electronic document is tendered for registration when it is submitted for registration in accordance with Part III of the Land Registration Reform Act, and a conveyance that is not an electronic document is tendered for registration when it is presented for registration at a land registry office.

2.  (1)  Subsection 2 (1) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 10, section 9, is amended by striking out the portion before clause (a) and substituting the following:

Tax

(1)  Every person who tenders for registration in Ontario a conveyance by which any land is conveyed to or in trust for a transferee shall pay when the conveyance is tendered for registration or before it is tendered for registration,

. . . . .

(2)  Subsection 2 (7) of the Act is amended by striking out "where the Minister or a collector is satisfied that" and substituting "if the Minister or a land registrar is satisfied that".

(3)  Subsection 2 (9) of the Act is repealed and the following substituted:

Minister's certification, electronic registration

(9)  A conveyance tendered for registration as an electronic document may be submitted for registration without the payment of tax and without the information listed in paragraphs 1 to 4 of subsection 5 (1) if the following conditions are satisfied:

1. The Minister or a person authorized in writing by the Minister is satisfied that no tax is payable, that all tax has been paid or that security for the payment of the tax has been furnished to the Minister in a form and of a kind that is acceptable to the Minister.

2. The Minister or authorized person has indicated to the Director of Land Registration appointed under subsection 6 (1) of the Registry Act, in a manner approved by the Director, that the tax has been paid or that no tax is payable.

Same, other registration

(10)  A conveyance tendered for registration otherwise than as an electronic document may be registered without the payment of tax and without the production of the affidavit required by section 5 if the following conditions are satisfied:

1. The Minister or a person authorized in writing by the Minister is satisfied that no tax is payable, that all tax has been paid or that security for the payment of the tax has been furnished to the Minister or to the land registrar in a form and of a kind that is acceptable to the Minister.

2. The Minister or authorized person has indicated over his or her signature on the instrument that the tax has been paid or that no tax is payable.

3.  Section 2.1 of the Act, as enacted by the Statutes of Ontario, 1996, chapter 18, section 8 and amended by 1997, chapter 10, section 10, is repealed.

4.  Section 2.2 of the Act, as enacted by the Statutes of Ontario, 1996, chapter 29, section 18, is amended by striking out "is liable for the payment of the tax required to be paid on registration of the conveyance under section 2 or 2.1" and substituting "is liable for the tax payable under subsection 2 (1)".

5.  (1)  Clause 3 (5) (a) of the Act, as amended by the Statutes of Ontario, 1996, chapter 18, section 9, is repealed and the following substituted:

(a) an instrument evidencing the disposition of the beneficial interest in land is tendered for registration within 30 days after the date of the disposition and the tax payable under subsection 2 (1) on the registration of the instrument has been paid; or

(2)  Clause 3 (5) (a.1) of the Act, as enacted by the Statutes of Ontario, 1996, chapter 18, section 9, is repealed.

(3)  Subsection 3 (6) of the Act, as re-enacted by the Statutes of Ontario, 1996, chapter 18, section 9, is amended by striking out the portion before clause (a) and substituting the following:

Tax paid once only

(6)  If a person who has paid the tax under this section tenders for registration an instrument evidencing the disposition, no tax is payable under subsection 2 (1) if the Minister is satisfied that the instrument,

. . . . .

(4)  Subsection 3 (8) of the Act, as re-enacted by the Statutes of Ontario, 1996, chapter 18, section 9, is repealed and the following substituted:

Registration of instrument without payment of tax, etc.

(8)  Where an instrument has been verified under subsection (7), it may be registered without the payment of tax under subsection 2 (1) and without the production of the statement or affidavit required by section 5.

(5)  The French version of clause 3 (9) (b) of the Act is amended by striking out "sûreté en garantie" and substituting "garantie".

(6)  The French version of subsection 3 (11) of the Act, as amended by the Statutes of Ontario, 1996, chapter 18, section 9, is amended by striking out "sûreté" in the portion before clause (a) and substituting "garantie".

(7)  Clause 3 (11) (b) of the Act, as re-enacted by the Statutes of Ontario, 1996, chapter 18, section 9, is amended by striking out "section 2 or 2.1" and substituting "subsection 2 (1)".

6.  Section 4 of the Act, as amended by the Statutes of Ontario, 1994, chapter 18, section 4, is repealed.

7.  (1)  Subsection 5 (1) of the Act, as amended by the Statutes of Ontario, 1997, chapter 10, section 12 and 1997, chapter 19, section 12, is repealed and the following substituted:

Information and returns

Statement or affidavit re conveyance

(1)  The following information respecting a conveyance shall be provided to the Minister in the form and manner required by subsection (1.1) or (1.2):

1. The true value of the consideration for the conveyance.

2. The true amount in cash and the value of any property or security included in the value of the consideration.

3. The amount or value of any lien or encumbrance subject to which the conveyance is made.

4. Where the value of the conveyance exceeds $400,000, whether the land being conveyed contains at least one and not more than two single family residences.

5. Such other information as may be required by the Minister for the purposes of administering or enforcing this or any other Act.

Same, statement

(1.1)  If the conveyance is tendered for registration as an electronic document, the information shall be provided as a statement in the form and manner approved by the Minister and the statement shall be included as part of the electronic document.

Same, affidavit

(1.2)  If the conveyance is tendered for registration otherwise than as an electronic document, the information shall be provided as an affidavit in the form approved by the Minister and the affidavit shall be filed with the land registrar and attached by the land registrar to the conveyance to which it relates.

(2)  Subsection 5 (2) of the Act, as amended by the Statutes of Ontario, 1999, chapter 6, section 32, is amended by striking out the portion before clause (a) and substituting the following:

Maker of statement or affidavit

(2)  The statement or affidavit required by this section shall be made by,

. . . . .

(3)  Subsection 5 (2.1) of the Act, as enacted by the Statutes of Ontario, 1996, chapter 29, section 20, is amended by striking out the portion before clause (a) and substituting the following:

Same

(2.1)  Despite subsection (2), upon application to the Minister by a transferor named in a conveyance, the Minister or a person authorized by the Minister may consent to the transferor making the statement or affidavit required by this section and the transferor may do so if,

. . . . .

(4)  Clause 5 (2.1) (c) of the Act, as enacted by the Statutes of Ontario, 1996, chapter 29, section 20, is amended by adding at the end "or statement".

(5)  Subsections 5 (3) and (4) of the Act are repealed and the following substituted:

Contents

(3)  The statement or affidavit shall state that the person making it has personal knowledge of the facts stated in it and shall state, where applicable, the capacity in which the person is making the statement or affidavit and the name of any transferee on whose behalf the person is making the statement or affidavit.

Referral to Minister

(4)  If the land registrar is not satisfied that the statement or affidavit sets out the true value of the consideration for the conveyance, he or she may refuse to register the conveyance until the Minister has signified over his or her signature that the Minister is satisfied that the value of the consideration stated in the statement or affidavit is the true value of the consideration.

(6)  Subsection 5 (5) of the Act, as re-enacted by the Statutes of Ontario, 1996, chapter 29, section 20, is amended by striking out the portion before clause (a) and substituting the following:

Exceptions

(5)  Despite subsection (1), the information listed in paragraphs 1 to 4 of subsection (1) is not required for a conveyance tendered for registration as an electronic document and an affidavit is not required for a conveyance tendered for registration otherwise than as an electronic document,

. . . . .

(7)  Subsection 5 (5.1) of the Act, as enacted by the Statutes of Ontario, 1996, chapter 29, section 20, is repealed.

(8)  Section 5 of the Act, as amended by the Statutes of Ontario, 1994, chapter 18, section 4, 1996, chapter 18, section 10, 1996, chapter 29, section 20, 1997, chapter 10, section 12, 1997, chapter 19, section 12 and 1999, chapter 6, section 32, is amended by adding the following subsection:

Exception, certain leases

(6)  The information listed in paragraphs 1 to 4 of subsection (1) is not required for a conveyance if no tax is payable by reason of subsection 1 (6).

(9)  Subsection 5 (10) of the Act, as re-enacted by the Statutes of Ontario, 1994, chapter 18, section 4, is repealed.

(10)  Subsection 5 (11) of the Act, as re-enacted by the Statutes of Ontario, 1994, chapter 18, section 4 and amended by 1997, chapter 10, section 12, is repealed.

(11)  Subsection 5 (11.1) of the Act, as enacted by the Statutes of Ontario, 1996, chapter 18, section 10, is repealed.

(12)  Subsection 5 (13) of the Act, as amended by the Statutes of Ontario, 1994, chapter 18, section 4 and 1997, chapter 10, section 12, is repealed.

8.  The Act is amended by adding the following sections:

Designated collectors

5.1  (1)  The Minister may, in writing, designate one or more persons to collect the tax payable under this Act with respect to conveyances tendered for registration as electronic documents, and may attach such conditions and restrictions to a designation as the Minister considers appropriate.

Status

(2)  Every designated collector is an agent of the Minister for the purposes of collecting and remitting the tax imposed by this Act with respect to conveyances tendered for registration as electronic documents.

Security

(3)  The Minister shall demand security in a form acceptable to the Minister from every designated collector in an amount not less than the equivalent of an average of one month's tax collectable by the designated collector calculated for the 12-month period immediately preceding the date of the Minister's demand or $1 million, whichever is greater.

Same

(4)  Upon receiving the Minister's demand for security under subsection (3), the designated collector shall forthwith furnish the security.

Same

(5)  The Minister may, at any time, increase or decrease the amount of security furnished or to be furnished under subsection (4).

Tax held in trust

(6)  All amounts collected or collectable as or on account of tax under this Act by a designated collector,

(a) shall be deemed, despite any security interest in the amount so collected or collectable, to be held in trust for Her Majesty in right of Ontario;

(b) shall be held separate and apart from the designated collector's property and from property held by any secured creditor that but for the security interest would be the designated collector's property; and

(c) shall be remitted by the designated collector to the Minister in the manner and at the times provided under this Act.

Exception

(7)  Subsection (6) does not apply in proceedings to which the Bankruptcy and Insolvency Act (Canada) or the Companies' Creditors Arrangement Act (Canada) applies.

Minister's certificate

(8)  Every person who, as assignee, liquidator, administrator, receiver, receiver-manager, secured or unsecured creditor or agent of the creditor, trustee or other like person, other than a trustee appointed under the Bankruptcy and Insolvency Act (Canada), takes control or possession of any property of a designated collector shall, before distributing the property or proceeds from the realization of the property under that person's control, obtain from the Minister a certificate that the amount deemed by subsection (6) to be held in trust, including any interest and penalties payable by the designated collector, has been paid or that security acceptable to the Minister has been given.

No distribution without Minister's certificate

(9)  Any person described in subsection (8) who distributes any property described in that subsection or the proceeds of the realization of that property without having obtained the certificate required by that subsection is personally liable to Her Majesty in right of Ontario for an amount equal to the amount deemed by subsection (6) to be held in trust, including any interest and penalties payable by the designated collector.

Notice to be given

(10)  A person described in subsection (8) shall give written notice to the Minister of his or her assumption of possession or control of the property within seven days after assuming possession or control.

Minister to advise of indebtedness

(11)  As soon as practicable after receiving a notice under subsection (10), the Minister shall advise the person described in subsection (8) of the amount deemed by subsection (6) to be held in trust, including any interest and penalties.

Agreements

(12)  For the purposes of ensuring and facilitating the collection of tax under this Act, the Minister may enter into such arrangements and agreements with a designated collector as the Minister considers appropriate.

Definitions

(13)  In this section,

"secured creditor" means a person who has a security interest in the property of another person or who acts for or on behalf of that person with respect to the security interest, and includes a trustee appointed under a trust deed relating to a security interest, a receiver or receiver-manager appointed by a secured creditor or by a court on the application of a secured creditor and any other person performing a similar function; ("créancier garanti")

"security interest" means any interest in property that secures payment or performance of an obligation, and includes an interest created by or arising out of a debenture, mortgage, lien, pledge, charge, deemed or actual trust, assignment or encumbrance of any kind whatsoever or whenever arising, created or deemed to arise or otherwise provided for, but does not include a security interest prescribed by the Minister as one to which subsections (6) to (10) do not apply. ("sûreté")

Duty to collect tax

5.2  (1)  Every designated collector and land registrar shall collect the tax payable under this Act with respect to conveyances tendered for registration.

Duty to remit tax

(2)  Every designated collector and land registrar shall remit to the Minister, at the times and in the manner required by the Minister, the tax collectable by the designated collector or land registrar.

Duty to provide information

(3)  Every designated collector and land registrar shall give to the Minister and to such other persons as the Minister may specify any information obtained in the course of performing duties under this Act and such other information as the Minister considers necessary for the proper administration and enforcement of this or any other Act, and shall give the information to the Minister and other persons without charge and in the form and manner and at the times required by the Minister.

Duty to comply with guidelines

(4)  Every designated collector and land registrar shall comply with such guidelines established by the Minister as the Minister may require respecting the form and manner in which information is to be obtained by designated collectors or land registrars in the course of performing duties under this Act and respecting the collection and remittance of tax under this Act.

Duty to file returns

5.3  (1)  Every land registrar shall file with the Minister such returns as the Minister may require with respect to the amount of tax collected by the land registrar.

Same, designated collectors

(2)  Every designated collector shall file with the Minister at such times and in such manner as the Minister may require such returns containing such information as the Minister may require.

9.  Section 6 of the Act, as amended by the Statutes of Ontario, 1997, chapter 10, section 13, is repealed and the following substituted:

Offence, false statements

6.  (1)  Every person is guilty of an offence who,

(a) makes, participates in, assents to or acquiesces in the making of false or deceptive statements in a statement, affidavit, return or other document prepared, submitted or filed under this Act;

(b) destroys, alters, mutilates, hides or otherwise disposes of any records or books of account, in order to evade payment of tax under this Act;

(c) makes, assents to or acquiesces in the making of false or deceptive entries, or assents to or acquiesces in the omission to enter a material particular, in any records or books of account;

(d) wilfully, in any manner, evades or attempts to evade,

(i) paying tax under this Act, or

(ii) complying with this Act; or

(e) conspires with any person to commit an offence described in clauses (a) to (d).

Same

(2)  A person convicted of an offence under subsection (1) is liable to one or both of the following penalties, in addition to any other penalty provided by this Act:

1. A fine that is,

i. a minimum of $1,000 or 50 per cent of the amount of tax that should have been remitted as collected or payable or that was sought to be evaded, whichever is greater, and

ii. a maximum of twice the amount of tax that should have been remitted as collected or payable or that was sought to be evaded, if the maximum so calculated is greater than $1,000.

2. Imprisonment for a term of not more than two years.

Offence, failure to deliver return, pay tax

6.1  In addition to any penalty otherwise payable under this Act, every person who fails to deliver a return as required by subsection 5 (7) or (8) or who fails to remit the tax payable is guilty of an offence and on conviction is liable to a fine of not less than 25 per cent of the tax payable and not more than twice the amount of the tax payable.

10.  (1)  Subsection 7 (1) of the Act, as amended by the Statutes of Ontario, 1997, chapter 10, section 14, is repealed and the following substituted:

Offence, general

(1)  Subject to sections 6 and 6.1, every person who knowingly contravenes any provision of this Act is guilty of an offence and on conviction is liable to a fine of not more than $10,000 if no other penalty is provided for the offence.

(2)  Subsection 7 (2) of the Act is amended by striking out "the Ministry of Revenue" and substituting "the Ministry of Finance".

11.  Section 7.1 of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 133, is amended by adding the following subsections:

Same, tax under s. 2 (1)

(2)  Every person who tenders for registration a conveyance described in subsection 2 (1) and who pays, at that time, an amount that is less than the amount of tax payable by that person under subsection 2 (1) shall pay a penalty, when the Minister assesses it, in an amount equal to 5 per cent of the difference between the tax payable and the amount actually paid.

Same, returns under s. 5

(3)  Every person who fails to deliver a return as required by subsection 5 (7) or (8) shall pay a penalty, when the Minister assesses it, in an amount equal to 5 per cent of the tax payable.

Same, taxes under s. 5

(4)  Every person who fails to remit with a return required by subsection 5 (7) or (8) the amount of tax payable shall pay, when the Minister so assesses, a penalty of an amount equal to 5 per cent of the difference between the tax payable and the amount actually paid.

12.  The Act is amended by adding the following section:

Penalties, designated collectors

Failure to comply with conditions of designation

7.2  (1)  The Minister may assess a penalty against a designated collector who fails to comply with any condition or restriction attached to the designated collector's designation under subsection 5.1 (1) and the amount of the penalty is not more than $5,000 for each day the failure continues.

Failure to provide security

(2)  The Minister may assess a penalty against a designated collector who fails to provide security as required under subsection 5.1 (3) and the amount of the penalty is not more than $5,000 for each day the failure continues.

Failure to collect tax

(3)  The Minister may assess a penalty against a designated collector who fails to collect tax as required by subsection 5.2 (1), and the amount of the penalty is 110 per cent of the amount that the designated collector failed to collect.

Right to sue

(4)  If a designated collector pays a penalty under subsection (3) in respect of tax that the designated collector failed to collect from a person who was liable to pay the tax, the designated collector may sue the person in order to recover the amount of the tax.

Failure to remit tax

(5)  The Minister may assess a penalty against a designated collector who fails to remit tax as required by subsection 5.2 (2), and the amount of the penalty is 10 per cent of the amount that the designated collector failed to remit.

Failure to provide information

(6)  The Minister may assess a penalty against a designated collector who, in the Minister's opinion, fails to provide the information required by subsection 5.2 (3) in accordance with the requirements imposed under that subsection and the amount of the penalty is $10,000 for each day that the failure continues.

Failure to comply with guidelines

(7)  The Minister may assess a penalty against a designated collector who, in the Minister's opinion, fails to comply with the guidelines under subsection 5.2 (4) and the amount of the penalty is not more than $5,000 for each day the failure continues.

Failure to file a return

(8)  The Minister may assess a penalty against a designated collector who fails to file a return under subsection 5.3 (2) at the time or in the manner required by the Minister or fails to include in a return filed under that subsection any information required by the Minister and the amount of the penalty is $10,000 for each day that the failure continues.

13.  (1)  Subsection 8 (1) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 43, Schedule F, section 6, is repealed and the following substituted:

Refund

(1)  Where a person has paid an amount under this Act that is not payable under this Act, the Minister may, upon receipt of satisfactory evidence that the amount was wrongly paid, refund all or part of the amount, but no refund shall be made unless an application for it is made within four years after the date of the payment.

(2)  Subsection 8 (6) of the Act, as amended by the Statutes of Ontario, 1996, chapter 18, section 11 and 1997, chapter 43, Schedule F, section 6, is amended by striking out "section 2 or 2.1" and substituting "subsection 2 (1)".

14.  Section 9.1 of the Act, as enacted by the Statutes of Ontario, 1994, chapter 18, section 4, is repealed.

15.  Section 9.2 of the Act, as enacted by the Statutes of Ontario, 1996, chapter 18, section 13 and amended by 1999, chapter 6, section 32, 1999, chapter 9, section 134, 2000, chapter 10, section 19 and 2001, chapter 23, section 143, is amended by adding the following subsection:

Information in application

(6)  All information in an application for a refund under this section shall be available to the public.

16.  The Act is amended by adding the following section:

Records to be kept

9.3  (1)  Every person required by section 5 to make a statement or affidavit or to deliver a return shall keep at their place of residence in Ontario or at their principal place of business in Ontario such documents, records and accounts in such form and containing such information as will enable an accurate determination of the taxes payable under this Act.

Same, designated collectors

(2)  Every designated collector shall keep at the designated collector's principal place of business in Ontario documents, records and accounts in such form and containing such information as will enable an accurate determination of the taxes collectable, collected and remitted under this Act.

Same

(3)  Every designated collector shall keep at the designated collector's principal place of business in Ontario documents, records and accounts in such form and containing such information as will enable the verification of information that the designated collector is required under subsection 5.2 (3) to give to the Minister.

Duration

(4)  A person required to keep documents, records and accounts shall do so for a period of seven years after the date on which the conveyance to which they relate is registered or the information to which they relate is given to the Minister, as the case may be, unless written permission for earlier disposal is received from the Minister.

17.  (1)  Clause 10 (1) (a) of the Act is amended by striking out "the amount of tax payable under this Act" at the end and substituting "an amount payable under this Act".

(2)  Clauses 10 (1) (b), (c) and (d) of the Act are repealed and the following substituted:

(b) examine property described in any conveyance or any property, process or matter an examination of which may, in his or her opinion, assist him or her in determining the accuracy of any statement, affidavit or return required by this Act or in ascertaining the information that is or should be in the books or records or in a statement, affidavit or return, or in ascertaining any amount payable under this Act; and

(c) require a designated collector, an officer, director, agent or representative of a designated collector, a transferee who is liable or possibly liable to pay tax under this Act, an officer, director, agent or representative of that transferee or any person on the premises,

(i) to give him or her all reasonable assistance with his or her audit or examination,

(ii) to answer all questions relating to the audit or examination either orally or, if he or she so requires, in writing, on oath or by statutory declaration, and

(iii) to attend at the premises or place with him or her for the purposes of giving reasonable assistance and answering questions relating to the audit or examination.

(3)  Subsection 10 (2) of the Act is repealed and the following substituted:

Demand for information

(2)  The Minister may, for any purpose relating to the administration or enforcement of this Act, serve on any person personally, by registered mail or by a courier service a written demand for information or for the production on oath or otherwise of books, letters, accounts, invoices, financial statements or such other documents as the Minister or the person authorized by the Minister to make the demand considers necessary to determine compliance with this Act.

Same

(2.1)  A person in receipt of a demand under subsection (2) shall comply with the demand within the time specified in the demand.

(4)  Subsection 10 (3) of the Act, as amended by the Statutes of Ontario, 1994, chapter 18, section 4, is repealed and the following substituted:

Copies as evidence

(3)  Where a book, record or other document has been examined or produced under this section, the person by whom it is examined or to whom it is produced, or any officer of the Ministry of Finance, may make or cause to be made one or more copies thereof, and a document purporting to be certified by the Minister or a person authorized by the Minister to be a copy made pursuant to this section is admissible in evidence and has the same probative force as the original document would have had if it had been proven in the ordinary way.

18.  (1)  Subsection 12 (1) of the Act, as re-enacted by the Statutes of Ontario, 1996, chapter 29, section 21, is repealed and the following substituted:

Assessment

(1)  The Minister may make an assessment of an amount of tax or penalty required under this Act, together with any interest imposed thereon under this Act,

(a) if a person responsible for the payment of tax fails to pay it as required under this Act;

(b) if a person required by section 5.1 to collect and remit tax to the Minister fails to remit the tax as required under this Act or if the amount remitted is not, in the opinion of the Minister, substantiated by the person's records; or

(c) if a person is liable to pay tax or a penalty imposed under this Act.

(2)  Section 12 of the Act, as amended by the Statutes of Ontario, 1994, chapter 18, section 4 and 1996, chapter 29, section 21, is amended by adding the following subsections:

Exception, waiver of limitation

(4.1)  Despite subsection (4), the Minister may assess or reassess a person at any time if the person has filed with the Minister a waiver in a form approved by the Minister before the expiry of the time provided in subsection (4).

Revocation of waiver

(4.2)  If a person files a waiver under subsection (4.1), the person may file a notice of revocation of the waiver in a form approved by the Minister.

Effect of revocation

(4.3)  If a person files a notice of revocation of the waiver under subsection (4.2), the Minister shall not issue an assessment or reassessment under subsection (1) in reliance on the waiver more than one year after the date on which the notice of revocation is filed.

(3)  Subsection 12 (5) of the Act is amended,

(a) by striking out "shall calculate the tax payable" and substituting "shall calculate the amount payable under this Act"; and

(b) by striking out "the Minister shall assess the amount of the tax" at the end and substituting "the Minister shall assess the amount payable under this Act".

(4)  Subsection 12 (7) of the Act is amended by striking out "Liability for tax" at the beginning and substituting "Liability to pay an amount under this Act".

(5)  Subsection 12 (8) of the Act is repealed and the following substituted:

Minister not bound by information

(8)  The Minister is not bound by any information delivered by or on behalf of a person responsible for the payment of an amount under this Act and may, despite any information that has been delivered or if no information has been delivered, assess the amount payable under this Act.

(6)  Section 12 of the Act, as amended by the Statutes of Ontario, 1994, chapter 18, section 4 and 1996, chapter 29, section 21, is amended by adding the following subsection:

Security given under s. 5.1 (3)

(11)  If the Minister assesses a person who has furnished security under subsection 5.1 (3), all or part of the security may be paid into the Consolidated Revenue Fund in satisfaction of all or part of the person's assessed liability.

19.  Subsection 14 (8) of the Act, as amended by the Statutes of Ontario, 1994, chapter 18, section 4, is amended by striking out "the court may order payment or refund of tax" and substituting "the court may order payment or refund of an amount".

20.  (1)  Clause 15 (1) (b) of the Act, as amended by the Statutes of Ontario, 2001, chapter 23, section 146, is amended by striking out "a warrant directed to the sheriff of the area in which any property of a person assessed for tax under this Act is located or situate for the amount of the tax owing by the person" and substituting "a warrant directed to the sheriff of the area in which any property of a person assessed under this Act is located or situate for the amount owing under this Act by the person".

(2)  The French version of subsection 15 (3) of the Act is amended by striking out "sûreté en garantie" and substituting "garantie".

(3)  Subsection 15 (6) of the Act is amended by striking out "the payment of any tax imposed by this Act" and substituting "the payment of any amount required under this Act".

21.  Subclause 17 (2) (a) (i) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 18, section 4, is repealed and the following substituted:

(i) all tax under this Act that is payable or collectable by the person before that date,

22.  The French version of subsection 18 (6) of the Act, as re-enacted by the Statutes of Ontario, 1997, chapter 10, section 18, is repealed and the following substituted:

Remise de la garantie

(6)  Le ministre remet à la personne qui l'a fournie la garantie de l'acquittement des droits annulés en vertu du présent article qu'il détient. Il le fait le plus tôt possible après avoir reconnu l'annulation des droits.

23.  Section 21 of the Act, as amended by the Statutes of Ontario, 1997, chapter 10, section 20, is amended by striking out "subsections 5 (7), (8), (9), (11), (12) and (13)" in the portion before clause (a) and substituting "subsections 5 (7), (8), (9) and (12), section 6.1, subsections 7.1 (2)".

24.  The Act is amended by adding the following sections:

Use and disclosure of certain information

21.1  The Minister may enter into agreements to permit third parties to use information provided under subsection 5 (1) for such purposes and subject to such conditions and restrictions as the Minister considers appropriate.

No right to compensation

21.2  Nothing in this Act and no exercise of any power or performance of any duty under section 5.1, 5.2, 5.3 or 21.1 shall be deemed by any court or person to entitle any person to compensation from the Crown under any agreement that purports to provide for compensation, whether the agreement is made before or after section 5.1 comes into force.

25.  Clause 22 (2) (c) of the Act is repealed.

Commencement

26.  This Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

SCHEDULE 22
AMENDMENT TO THE LIMITATIONS ACT, 2002

1.  The Schedule to the Limitations Act, 2002, as amended by the Statutes of Ontario, 2002, chapter 24, Schedule B, section 50 and 2004, chapter 16, Schedule D, Table, is amended by striking out,

Securities Act

section 129.1, subsection 136 (5) and section 138

   

and substituting the following:

Securities Act

section 129.1, subsection 136 (5) and sections 138 and 138.14

Commencement

2.  This Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

SCHEDULE 23
AMENDMENT TO THE LOAN AND TRUST CORPORATIONS ACT

1.  The definition of "loan corporation" in section 1 of the Loan and Trust Corporations Act, as amended by the Statutes of Ontario, 2001, chapter 8, section 52, is amended by striking out "a credit union or caisse populaire incorporated or registered under the Credit Unions and Caisses Populaires Act or an issuer registered under the Investment Contracts Act" at the end and substituting "a credit union, caisse populaire or league under the Credit Unions and Caisses Populaires Act, 1994 or a retail association under the Cooperative Credit Associations Act (Canada)".

Commencement

2.  This Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

SCHEDULE 24
AMENDMENT TO THE MINISTRY OF REVENUE ACT

1.  The Ministry of Revenue Act is amended by adding the following section:

Minister may withhold tax refunds

15.  Despite the provisions of any other Act, if a person who is entitled to a refund on account of tax, interest or penalties under any Act administered by the Minister has failed to deliver one or more returns under any Act or Acts administered by the Minister, the Minister may withhold payment of the refund until such time as the Minister is satisfied that the person has delivered the return or returns.

Commencement

2.  This Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

SCHEDULE 25
AMENDMENTS TO THE MOTOR VEHICLE ACCIDENT CLAIMS ACT

1.  (1)  Subsection 5 (1) of the Motor Vehicle Accident Claims Act is amended by striking out "in a form prescribed by the Minister" and substituting "in a form approved by the Director".

(2)  Clause 5 (3) (b) of the Act is amended by striking out "in a form prescribed by the Minister" and substituting "in a form approved by the Director".

2.  Subsection 7 (1) of the Act, as amended by the Statutes of Ontario, 1993, chapter 27, Schedule, is amended by striking out "in the form prescribed by the Lieutenant Governor in Council" and substituting "in the form approved by the Director".

Commencement

3.  This Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

SCHEDULE 26
AMENDMENTS TO THE MUNICIPAL ACT, 2001

1.  (1)  Clause 314 (1) (a) of the Municipal Act, 2001 is repealed and the following substituted:

(a) establish two or three bands of assessment of property for the purposes of facilitating graduated tax rates for any one or more of the property classes included in the commercial classes or the industrial classes; and

(2)  Subsection 314 (2) of the Act is repealed.

(3)  Section 314 of the Act is amended by adding the following subsection:

Definitions

(8)  In this section,

"commercial classes" has the meaning given to that expression by subsection 308 (1); ("catégories commerciales")

"industrial classes" has the meaning given to that expression by subsection 308 (1). ("catégories industrielles")

2.  (1)  The definition of "Upper-tier commercial tax" in subsection 315 (3) of the Act is repealed and the following substituted:

"Upper-tier commercial tax" means that portion of the total commercial tax levied in the local municipality for upper-tier purposes.

(2)  Subsection 315 (4) of the Act is amended by adding the following clause:

(a.1) prescribing the rate of tax to be imposed for 2005 or a subsequent year by a local municipality on certain land described in subsection (1) instead of the rate of tax prescribed under clause (a) for that year for the geographic area in which the land is located;

3.  Subsection 329 (4) of the Act is repealed and the following substituted:

Adjustment

(4)  If the taxes for municipal and school purposes for a property for the previous year are recalculated as a result of one of the following, the amount under paragraph 1 of subsection (2) shall be adjusted accordingly:

1. A request under section 39.1 of the Assessment Act.

2. A complaint under section 40 of the Assessment Act.

3. An application under section 46 of the Assessment Act.

4. An application under section 334 of this Act or 447.26 of the old Act.

5. A determination under section 447.26.1 of the old Act.

4.  Paragraph 4 of subsection 330 (4) of the Act is repealed and the following substituted:

4. The percentage established under the by-law shall not exceed the percentage determined under paragraph 3 or 100 per cent, whichever is the lesser percentage, unless otherwise prescribed by the Minister of Finance.

5.  Clause (a) of the definition of "eligible property" in subsection 331 (20) of the Act is amended by striking out "subsection 329 (8)" and substituting "subsection 329 (7)".

6.  Clause 357 (1) (e) of the Act is amended by striking out "from the local municipality".

7.  The Act is amended by adding the following section:

Error in calculating taxes

359.1  (1)  Despite paragraph 1 of subsection 329 (2), upon application made by the treasurer of a local municipality, the local municipality may, if it is satisfied that there was an error in the calculation of taxes on land under Part IX or under Part XXII.1, XXII.2 or XXII.3 of the old Act, authorize the use of an amount of taxes referred to in paragraph 1 of subsection 329 (2) for the year in which the application is made which reflects what the taxes would have been on the land for the previous year if the error had not been made.

Meeting

(2)  Before making a decision under subsection (1), council shall,

(a) hold a meeting at which the treasurer and the person in respect of whom the application is made may make representations to council; and

(b) notify the treasurer and the person in respect of whom the application is made of the meeting by mail sent at least 14 days before the meeting.

Notice

(3)  Within 14 days after making its decision, the council shall notify the treasurer and the person in respect of whom the application is made of the decision.

Appeal

(4)  The provisions of subsections 359 (5), (6) and (7) apply to a decision of a council under this section, with necessary modifications.

No authority to change previous year's taxes

(5)  Nothing in this section authorizes a municipality to change the taxes levied on land for a previous year.

8.  (1)  Section 365.1 of the Act, as enacted by the Statutes of Ontario, 2002, chapter 17, Schedule A, section 68, is amended by adding the following subsections:

Payment of tax if conditions not met

(3.1)  If a municipality passes a by-law under subsection (2) or (3) and the by-law contains conditions which must be met before tax assistance is provided, the by-law may also provide,

(a) that all or some of the taxes that are the subject of the tax assistance may be levied but not collected during the period before the municipality determines whether the conditions have been met; and

(b) that the taxes shall become payable only upon notice in writing by the municipality to the owner of the property that the conditions have not been met as required under the by-law.

Same

(3.2)  A by-law providing that taxes become payable in the circumstances described in subsection (3.1) may also provide that the interest provisions of a by-law passed under section 345 apply, if the taxes become payable, as if the payment of the taxes had not been deferred.

(2)  Subsection 365.1 (21) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 17, Schedule A, section 68, is repealed and the following substituted:

Refund or credit

(21)  If an application made under subsection (8) is approved with respect to a property, the local municipality may,

(a) refund the taxes to the extent required to provide the tax assistance, if the taxes have been paid; or

(b) credit the amount to be refunded to an outstanding tax liability of the owner of the eligible property with respect to the property, if the taxes have not been paid.

9.  Section 474 of the Act is repealed and the following substituted:

Taxes imposed under certain Parts of old Act

474.  Despite the repeal of the old Act, Parts XXII.1, XXII.2 and XXII.3 of that Act continue to apply with respect to taxes imposed in accordance with those Parts, including any power under those Parts to make regulations relating to taxes payable under the old Act for any year ending before January 1, 2003.

Commencement

10.  (1)  Subject to subsections (2) and (3), this Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

Same

(2)  Section 8 shall be deemed to have come into force on October 1, 2004.

Same

(3)  Section 9 shall be deemed to have come into force on January 1, 2003.

SCHEDULE 27
AMENDMENT TO THE NORTHERN ONTARIO HERITAGE FUND ACT

1.  Subsection 3 (4) of the Northern Ontario Heritage Fund Act, as amended by the Statutes of Ontario, 2000, chapter 42, section 77, is amended by striking out "or in The District Municipality of Muskoka".

Commencement

2.  This Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

SCHEDULE 28
AMENDMENT TO THE NORTHERN SERVICES BOARDS ACT

1.  Section 35 of the Northern Services Boards Act, as enacted by the Statutes of Ontario, 1998, chapter 16, section 10 and amended by 2000, chapter 42, section 79, is amended by striking out "and The District Municipality of Muskoka".

Commencement

2.  This Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

SCHEDULE 29
AMENDMENTS TO THE ONTARIO HOME OWNERSHIP SAVINGS PLAN ACT

1.  Section 2 of the Ontario Home Ownership Savings Plan Act, as amended by the Statutes of Ontario, 1994, chapter 17, section 124 and 2000, chapter 42, section 87, is amended by striking out "after the 31st day of August, 1988" in the portion before paragraph 1 and substituting "after August 31, 1988 and before May 19, 2004".

2.  Subsection 3 (3) of the Act, as amended by the Statutes of Ontario, 2000, chapter 42, section 88, is amended by striking out the portion before clause (a) and substituting the following:

Not a qualifying contribution

(3)  No contribution to an Ontario home ownership savings plan is a qualifying contribution for the purposes of this Act and the Income Tax Act if it is made after May 18, 2004 or if,

. . . . .

3.  (1)  Section 9 of the Act, as amended by the Statutes of Ontario, 1994, chapter 17, section 123, 1997, chapter 19, section 18 and 2000, chapter 42, section 91, is amended by adding the following subsection:

Exception, 2006 and subsequent years

(2.1)  If, after December 31, 2005, the planholder of an Ontario home ownership savings plan receives assets of the plan or the use or benefit of assets of the plan either directly or indirectly, or is deemed by this Act to have received any assets of the plan, no amount is payable under subsection (1) with respect to tax credits allowed under the Income Tax Act relating to the plan if the planholder has otherwise complied with this Act and the regulations.

(2)  Subsection 9 (3) of the Act, as amended by the Statutes of Ontario, 1994, chapter 17, section 123 and 1997, chapter 19, section 18, is amended by striking out "Except in the circumstances described in section 5" at the beginning and substituting "Except in the circumstances described in subsection (2.1) or section 5".

4.  Section 11 of the Act, as re-enacted by the Statutes of Ontario, 1994, chapter 17, section 126, is amended by adding the following subsection:

Deemed receipt of assets of the plan

(3)  A planholder who entered into an Ontario home ownership savings plan after December 31, 1998 and has otherwise complied with this Act and the regulations shall be deemed to have received all of the assets of the plan on January 1, 2006 if the planholder has not, on or before December 31, 2005,

(a) obtained a release of the assets of the plan under section 5; and

(b) completed the purchase of property that will be a qualifying eligible home.

Commencement

5.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

Same

(2)  Sections 1 to 4 shall be deemed to have come into force on May 18, 2004.

SCHEDULE 30
AMENDMENTS TO THE ONTARIO MUNICIPAL ECONOMIC INFRASTRUCTURE FINANCING AUTHORITY ACT, 2002

1.  The short title of the Ontario Municipal Economic Infrastructure Financing Authority Act, 2002 is repealed and the following substituted:

Ontario Strategic Infrastructure Financing Authority Act, 2002

2.  Section 1 of the Act is amended by adding the following subsection:

Reference to Ontario Municipal Economic Infrastructure Financing Authority

(2)  A reference in a regulation made under this or any other Act to the Ontario Municipal Economic Infrastructure Financing Authority shall be deemed to be a reference to the Ontario Strategic Infrastructure Financing Authority.

3.  Subsection 2 (1) of the Act is amended,

(a) by striking out "Ontario Municipal Economic Infrastructure Financing Authority" wherever it appears and substituting in each case "Ontario Strategic Infrastructure Financing Authority"; and

(b) by striking out "Office ontarien de financement de l'infrastructure économique des municipalités" and substituting "Office ontarien de financement de l'infrastructure stratégique".

Commencement

4.  This Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

SCHEDULE 31
AMENDMENTS TO THE PENSION BENEFITS ACT

1.  (1)  The definition of "collective agreement" in section 1 of the Pension Benefits Act is amended by striking out "Labour Relations Act" and substituting "Labour Relations Act, 1995".

(2)  The definition of "trade union" in section 1 of the Act is amended by striking out " Labour Relations Act " and substituting " Labour Relations Act, 1995 ".

2.  Subsection 38 (5) of the Act is amended by striking out "section 57 of the Labour Relations Act" and substituting "section 62 of the Labour Relations Act, 1995".

3.  Subsection 74 (5) of the Act is amended by striking out "Part XIV of the Employment Standards Act" and substituting "Part XV of the Employment Standards Act, 2000".

4.  Subsections 80 (8) and (9) of the Act are amended by striking out "section 57 of the Labour Relations Act" wherever it appears and substituting in each case "section 62 of the Labour Relations Act, 1995".

5.  Subsection 82 (4) of the Act is amended by striking out "Treasurer of Ontario" and substituting "Minister of Finance".

6.  Subsections 112 (1) and (2) of the Act are amended by striking out "first class mail" wherever it appears and substituting in each case "regular mail".

Commencement

7.  This Schedule comes into force the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

SCHEDULE 32
AMENDMENT TO THE PROVINCE OF ONTARIO SAVINGS OFFICE PRIVATIZATION ACT, 2002

1.  Subsection 9 (5) of the Province of Ontario Savings Office Privatization Act, 2002 is repealed and the following substituted:

Crown not liable

(5)  Upon a transfer and assignment referred to in subsection (1) or a disposition of the contents of a safety deposit box under subsection (4), the Crown shall cease to be liable to any person in respect of the safety deposit box, its contents and the proceeds of disposition, if any.

No action against the Crown, etc.

(6)  No action or proceedings for damages or otherwise shall be commenced against the Crown, the Minister of Finance, the Ontario Financing Authority or any director, officer, employee or agent of the Crown or the Ontario Financing Authority in respect of,

(a) a transfer or assignment referred to in subsection (1); or

(b) a disposition of the contents of a safety deposit box under subsection (4) or the remittance of any contents, or the proceeds of disposition of any contents, of a safety deposit box to the Consolidated Revenue Fund.

Commencement

2.  This Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

SCHEDULE 33
AMENDMENTS TO THE RETAIL SALES TAX ACT

1.  Section 1 of the Retail Sales Tax Act, as amended by the Statutes of Ontario, 1993, chapter 12, section 1, 1994, chapter 13, section 1, 1994, chapter 17, section 135, 1996, chapter 29, section 23, 1997, chapter 10, section 30, 1997, chapter 43, Schedule D, section 1, 2000, chapter 10, section 23, 2001, chapter 8, section 227, 2001, chapter 23, section 188, 2002, chapter 8, Schedule J, section 1, 2002, chapter 17, Schedule F, Table and 2002, chapter 22, section 170, is amended by adding the following subsection:

Fair value of transient accommodation

(1.1)  Despite the definition of "fair value" in subsection (1), the fair value of transient accommodation sold to a purchaser on or after May 19, 2004 and before May 19, 2005 does not include a fee imposed by the vendor if the following conditions are satisfied:

1. The vendor forwards the fee to a non-profit agency to be used for the exclusive purpose of promoting tourism in Ontario or in the municipality in which the accommodation is located.

2. The fee does not exceed 3 per cent of the amount that would be the fair value of the transient accommodation if no fee were imposed by the vendor.

3. The fee is shown as a separate item on the purchaser's invoice or receipt for the accommodation.

4. After December 31, 2004, the fee is labelled on the purchaser's invoice or receipt as "Destination Marketing Fee".

2.  (1)  Clause 2.1 (8) (d) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 13, section 3, is amended by striking out "marine insurance, as defined in section 1 of the Insurance Act" at the beginning and substituting "marine insurance, as defined under the Insurance Act".

(2)  Clause 2.1 (8) (l) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 13, section 3, is amended by striking out "property damage insurance, as defined in section 1 of the Insurance Act" at the beginning and substituting "property insurance, as defined under the Insurance Act".

3.  Subsection 18 (3) of the Act, as amended by the Statutes of Ontario, 1996, chapter 29, section 30 and 2001, chapter 23, section 194, is repealed and the following substituted:

Assessment, four-year limitation

(3)  The Minister may assess or reassess any tax payable under this Act by a purchaser, other than a manufacturing contractor, or by a registrant within four years from the day such tax became payable.

Same, manufacturing contractor

(3.0.1)  The Minister may assess or reassess any tax payable by a manufacturing contractor under this Act within four years from the end of the manufacturing contractor's fiscal year during which the tax became payable.

Exception, misrepresentation or fraud

(3.0.2)  Despite subsections (3) and (3.0.1), the Minister may assess or reassess a purchaser or registrant at any time if the purchaser or registrant has made any misrepresentation that is attributable to neglect, carelessness or wilful default, or has committed any fraud in making a return or in supplying any information under this Act or in omitting to disclose any information.

Exception, waiver of limitation

(3.0.3)  Despite subsections (3) and (3.0.1), the Minister may assess or reassess a purchaser or registrant at any time if the purchaser or registrant has filed with the Minister a waiver in a form approved by the Minister before the expiry of the time provided in subsection (3) or (3.0.1), as the case may be.

Revocation of waiver

(3.0.4)  If a purchaser or registrant files a waiver under subsection (3.0.3), the purchaser or registrant may file a notice of revocation of the waiver in a form approved by the Minister.

Effect of revocation

(3.0.5)  If a purchaser or registrant files a notice of revocation of the waiver under subsection (3.0.4), the Minister shall not issue an assessment or reassessment under subsection (3) or (3.0.1), as the case may be, in reliance on the waiver more than one year after the date on which the notice of revocation is filed.

4.  Subsection 20 (5) of the Act is repealed and the following substituted:

Restriction, four-year limitation

(5)  No penalty imposed under subsection (3) shall be imposed with respect to tax that should have been collected more than four years immediately preceding the day of the assessment under subsection (3).

Exception, waiver of limitation

(5.1)  The restriction in subsection (5) does not apply if the vendor has filed with the Minister a waiver in a form approved by the Minister within four years from the date on which the tax should have been collected.

Revocation of waiver

(5.2)  If a vendor files a waiver under subsection (5.1), the vendor may file a notice of revocation of the waiver in a form approved by the Minister.

Effect of revocation

(5.3)  If a vendor files a notice of revocation of waiver under subsection (5.2), the Minister shall not assess a penalty under subsection (3) in reliance on the waiver more than one year after the date on which the notice of revocation is filed.

Exception, misrepresentation or fraud

(5.4)  The restriction in subsection (5) does not apply if the Minister establishes that the vendor has made any misrepresentation that is attributable to neglect, carelessness or wilful default, or has committed any fraud in making a return or in supplying any information under this Act or in omitting to disclose any information.

5.  Section 34 of the Act, as amended by the Statutes of Ontario, 1994, chapter 13, sections 8 and 20 and 2001, chapter 23, section 204, is amended by adding the following subsection:

Exception, tax payable under s. 3

(6)  Despite subsections (1) and (3), the interest payable under this section in respect of tax payable under section 3 shall be,

(a) charged at the rate prescribed by the regulations made under subsection 28.2 (5) of the Fuel Tax Act; and

(b) calculated in the manner prescribed by the regulations under subsection 28.2 (5) of the Fuel Tax Act.

6.  Section 35 of the Act, as re-enacted by the Statutes of Ontario, 1994, chapter 13, section 21, is amended by adding the following subsection:

Exception, overpayment of tax payable under s. 3

(4)  Despite subsections (1) and (2), interest paid or applied under this section in respect of an overpayment of tax payable under section 3 shall be,

(a) charged at the rate prescribed by the regulations made under subsection 28.2 (5) of the Fuel Tax Act; and

(b) calculated in the manner prescribed by the regulations under subsection 28.2 (5) of the Fuel Tax Act.

7.  (1)  Subsection 48 (3) of the Act, as amended by the Statutes of Ontario, 1993, chapter 12, section 14, 1994, chapter 13, section 25, 1996, chapter 18, section 18, 1997, chapter 10, section 34, 1997, chapter 19, section 22, 1997, chapter 43, Schedule D, section 14, 1998, chapter 5, section 47, 1999, chapter 9, section 189, 2000, chapter 42, section 95, 2001, chapter 8, section 232, 2001, chapter 23, section 207 and 2002, chapter 23, section 5, is amended by adding the following clause:

(c) providing for the use of purchase exemption certificates and other documents where purchasers or classes of purchasers are exempt from tax under this Act;

(2)  Clause 48 (3) (k) of the Act is repealed and the following substituted:

(k) providing for a rebate or a partial rebate of tax paid on motor vehicles that are purchased to transport physically disabled persons if the motor vehicles are ordered from a vendor or purchased on or before May 18, 2004 and delivered to the purchaser before August 1, 2004;

(3)  Subsection 48 (3) of the Act, as amended by the Statutes of Ontario, 1993, chapter 12, section 14, 1994, chapter 13, section 25, 1996, chapter 18, section 18, 1997, chapter 10, section 34, 1997, chapter 19, section 22, 1997, chapter 43, Schedule D, section 14, 1998, chapter 5, section 47, 1999, chapter 9, section 189, 2000, chapter 42, section 95, 2001, chapter 8, section 232, 2001, chapter 23, section 207 and 2002, chapter 23, section 5, is amended by adding the following clause:

(s) providing for a rebate of all or part of the tax paid in respect of a wind energy system, a micro hydro-electric energy system or a geothermal energy system, as those terms are defined by the Minister, that is purchased and incorporated into residential premises after March 27, 2003 and before November 26, 2007, and prescribing the terms and conditions under which the rebate may be made including,

(i) the person to whom the rebate is payable,

(ii) the manner of determining the amount of the rebate, and

(iii) the class or classes of residential premises that qualify for the purposes of the rebate.

Commencement

8.  (1)  Subject to subsections (2) and (3), this Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

Same

(2)  Section 1 and subsection 7 (2) shall be deemed to have come into force on May 19, 2004.

Same

(3)  Section 2 comes into force on the day subsection 4 (1) of Schedule H to the Government Efficiency Act, 2002 comes into force.

SCHEDULE 34
AMENDMENTS TO THE SECURITIES ACT

1.  (1)  Subsection 1 (1) of the Securities Act, as amended by the Statutes of Ontario, 1994, chapter 11, section 350, 1994, chapter 33, section 1, 1997, chapter 19, section 23, 1999, chapter 6, section 60, 1999, chapter 9, section 193, 2001, chapter 23, section 209 and 2002, chapter 22, section 177, is amended by adding the following definition:

"forward-looking information" means disclosure regarding possible events, conditions or results of operations that is based on assumptions about future economic conditions and courses of action and includes future oriented financial information with respect to prospective results of operations, financial position or cash flows that is presented either as a forecast or a projection; ("information prospective")

(2)  The definition of "mutual fund" in subsection 1 (1) of the Act, as re-enacted by the Statutes of Ontario, 2002, chapter 22, section 177, is repealed and the following substituted:

"mutual fund" means an issuer whose primary purpose is to invest money provided by its security holders and whose securities entitle the holder to receive on demand, or within a specified period after demand, an amount computed by reference to the value of a proportionate interest in the whole or in part of the net assets, including a separate fund or trust account, of the issuer; ("fonds mutuel")

(3)  Subsection 1 (1) of the Act, as amended by the Statutes of Ontario, 1994, chapter 11, section 350, 1994, chapter 33, section 1, 1997, chapter 19, section 23, 1999, chapter 6, section 60, 1999, chapter 9, section 193, 2001, chapter 23, section 209 and 2002, chapter 22, section 177, is amended by adding the following definition:

"non-redeemable investment fund" means an issuer,

(a) whose primary purpose is to invest money provided by its security holders,

(b) that does not invest,

(i) for the purpose of exercising or seeking to exercise control of an issuer, other than an issuer that is a mutual fund or a non-redeemable investment fund, or

(ii) for the purpose of being actively involved in the management of any issuer in which it invests, other than an issuer that is a mutual fund or a non-redeemable investment fund, and

(c) that is not a mutual fund; ("fonds d'investissement à capital fixe")

(4)  Subsection 1 (1.1) of the Act, as re-enacted by the Statutes of Ontario, 2002, chapter 22, section 177, is amended by striking out ""non-redeemable investment fund"".

2.  (1)  Clause 3.4 (2) (b) of the Act, as re-enacted by the Statutes of Ontario, 2002, chapter 22, section 178, is repealed and the following substituted:

(b) that is designated under the terms of the order or settlement for allocation to or for the benefit of third parties.

(2)  Section 3.4 of the Act, as enacted by the Statutes of Ontario, 1997, chapter 10, section 37 and amended by 2002, chapter 22, section 178, is amended by adding the following subsection:

Same

(2.1)  The Minister may establish guidelines respecting the allocation of money received by the Commission pursuant to an order described in subsection (2) or money received by the Commission as a payment to settle enforcement proceedings commenced by the Commission.

3.  Clause 75 (3) (a) of the Act, as re-enacted by the Statutes of Ontario, 2002, chapter 22, section 180, is amended by striking out "subsection (2)" and substituting "subsections (1) and (2)".

4.  (1)  Clause 126.2 (b) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 182, is repealed and the following substituted:

(b) would reasonably be expected to have a significant effect on the market price or value of a security.

(2)  Section 126.2 of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 182, is amended by adding the following subsection:

Same

(2)  A breach of subsection (1) does not give rise to a statutory right of action for damages otherwise than under Part XXIII or XXIII.1.

5.  Subsection 127 (3.1) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 183, is repealed and the following substituted:

Exception

(3.1)  A person or company is not entitled to participate in a proceeding in which an order may be made under paragraph 9 or 10 of subsection (1) solely on the basis that the person or company may be entitled to receive any amount paid under the order.

6.  Subsection 130 (1) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Liability for misrepresentation in prospectus

(1)  Where a prospectus, together with any amendment to the prospectus, contains a misrepresentation, a purchaser who purchases a security offered by the prospectus during the period of distribution or during distribution to the public has, without regard to whether the purchaser relied on the misrepresentation, a right of action for damages against,

. . . . .

7.  Subsection 130.1 (1) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 9, section 218, is repealed and the following substituted:

Liability for misrepresentation in offering memorandum

(1)  Where an offering memorandum contains a misrepresentation, a purchaser who purchases a security offered by the offering memorandum during the period of distribution has, without regard to whether the purchaser relied on the misrepresentation, the following rights:

1. The purchaser has a right of action for damages against the issuer and a selling security holder on whose behalf the distribution is made.

2. If the purchaser purchased the security from a person or company referred to in paragraph 1, the purchaser may elect to exercise a right of rescission against the person or company. If the purchaser exercises this right, the purchaser ceases to have a right of action for damages against the person or company.

8.  (1)  Subsection 131 (1) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Liability for misrepresentation in circular

(1)  Where a take-over bid circular sent to the security holders of an offeree issuer as required by Part XX, or any notice of change or variation in respect of the circular, contains a misrepresentation, a security holder may, without regard to whether the security holder relied on the misrepresentation, elect to exercise a right of action for rescission or damages against the offeror or a right of action for damages against,

. . . . .

(2)  Subsection 131 (2) of the Act is repealed and the following substituted:

Same

(2)  Where a directors' circular or a director's or officer's circular delivered to the security holders of an offeree issuer as required by Part XX, or any notice of change or variation in respect of the circular, contains a misrepresentation, a security holder has, without regard to whether the security holder relied on the misrepresentation, a right of action for damages against every director or officer who signed the circular or notice that contained the misrepresentation.

9.  The Act is amended by adding the following section:

Defence to liability for misrepresentation

132.1  (1)  A person or company is not liable in an action under section 130, 130.1 or 131 for a misrepresentation in forward-looking information if the person or company proves all of the following things:

1. The document containing the forward-looking information contained, proximate to that information,

i. reasonable cautionary language identifying the forward-looking information as such, and identifying material factors that could cause actual results to differ materially from a conclusion, forecast or projection in the forward-looking information, and

ii. a statement of the material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection set out in the forward-looking information.

2. The person or company had a reasonable basis for drawing the conclusions or making the forecasts and projections set out in the forward-looking information.

Exception

(2)  Subsection (1) does not relieve a person or company of liability respecting forward-looking information in a financial statement or forward-looking information in a document released in connection with an initial public offering.

10.  (1)  The definition of "core document" in section 138.1 of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is repealed and the following substituted:

"core document" means,

(a) where used in relation to,

(i) a director of a responsible issuer who is not also an officer of the responsible issuer,

(ii) an influential person, other than an officer of the responsible issuer or an investment fund manager where the responsible issuer is an investment fund, or

(iii) a director or officer of an influential person who is not also an officer of the responsible issuer, other than an officer of an investment fund manager,

a prospectus, a take-over bid circular, an issuer bid circular, a directors' circular, a rights offering circular, management's discussion and analysis, an annual information form, an information circular, annual financial statements and interim financial statements of the responsible issuer,

(b) where used in relation to,

(i) a responsible issuer or an officer of the responsible issuer,

(ii) an investment fund manager, where the responsible issuer is an investment fund, or

(iii) an officer of an investment fund manager, where the responsible issuer is an investment fund,

a prospectus, a take-over bid circular, an issuer bid circular, a directors' circular, a rights offering circular, management's discussion and analysis, an annual information form, an information circular, annual financial statements, interim financial statements and a report required by subsection 75 (2) of the responsible issuer, and

(c) such other documents as may be prescribed by regulation for the purposes of this definition; ("document essentiel")

(2)  The definition of "expert" in section 138.1 of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is repealed and the following substituted:

"expert" means a person or company whose profession gives authority to a statement made in a professional capacity by the person or company including, without limitation, an accountant, actuary, appraiser, auditor, engineer, financial analyst, geologist or lawyer, but not including an entity that is an approved rating organization for the purposes of National Instrument 44-101 of the Canadian Securities Administrators; ("expert")

(3)  The definition of "forward-looking information" in section 138.1 of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is repealed.

(4)  Clause (g) of the definition of "liability limit" in section 138.1 of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is repealed and the following substituted:

(g) in the case of each person who made a public oral statement, other than an individual referred to in clause (d), (e) or (f), the greater of,

(i) $25,000, and

(ii) 50 per cent of the aggregate of the person's compensation from the responsible issuer and its affiliates;

(5)  The definition of "responsible issuer" in section 138.1 of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is repealed and the following substituted:

"responsible issuer" means,

(a) a reporting issuer, or

(b) any other issuer with a real and substantial connection to Ontario, any securities of which are publicly traded; ("émetteur responsable")

11.  Clauses 138.2 (a) and (b) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, are repealed and the following substituted:

(a) the purchase of a security offered by a prospectus during the period of distribution;

(b) the acquisition of an issuer's security pursuant to a distribution that is exempt from section 53 or 62, except as may be prescribed by regulation;

12.  (1)  The English version of subsection 138.3 (1) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a person or company who acquires or disposes of an issuer's security" in the portion before clause (a) and substituting "a person or company who acquires or disposes of the issuer's security".

(2)  The English version of subclause 138.3 (1) (d) (i) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is repealed and the following substituted:

(i) the responsible issuer or any person or company acting on behalf of the responsible issuer to release the document, or

(3)  The English version of subsection 138.3 (2) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a person or company who acquires or disposes of an issuer's security" in the portion before clause (a) and substituting "a person or company who acquires or disposes of the issuer's security".

(4)  Subsection 138.3 (3) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out the portion before clause (a) and substituting the following:

Influential persons

(3)  Where an influential person or a person or company with actual, implied or apparent authority to act or speak on behalf of the influential person releases a document or makes a public oral statement that relates to a responsible issuer and that contains a misrepresentation, a person or company who acquires or disposes of the issuer's security during the period between the time when the document was released or the public oral statement was made and the time when the misrepresentation contained in the document or public oral statement was publicly corrected has, without regard to whether the person or company relied on the misrepresentation, a right of action for damages against,

. . . . .

(5)  The English version of subsection 138.3 (4) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a person or company who acquires or disposes of an issuer's security" in the portion before clause (a) and substituting "a person or company who acquires or disposes of the issuer's security".

(6)  Subsection 138.3 (5) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a proceeding" and substituting "an action".

(7)  Subsection 138.3 (6) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a proceeding" in the portion before clause (a) and substituting "an action".

(8)  Subsection 138.3 (7) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is repealed and the following substituted:

No implied or actual authority

(7)  In an action under subsection (2) or (3), if the person who made the public oral statement had apparent authority, but not implied or actual authority, to speak on behalf of the issuer, no other person is liable with respect to any of the responsible issuer's securities that were acquired or disposed of before that other person became, or should reasonably have become, aware of the misrepresentation.

13.  (1)  Subsection 138.4 (1) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a proceeding" in the portion before clause (a) and substituting "an action".

(2)  Subsection 138.4 (2) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a proceeding" and substituting "an action".

(3)  Subsection 138.4 (3) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a proceeding" in the portion before clause (a) and substituting "an action".

(4)  Subsection 138.4 (4) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a proceeding" in the portion before clause (a) and substituting "an action".

(5)  Subsection 138.4 (5) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a proceeding" in the portion before clause (a) and substituting "an action".

(6)  Subsection 138.4 (6) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a proceeding" in the portion before clause (a) and substituting "an action".

(7)  Subsection 138.4 (7) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "the courts" in the portion before clause (a) and substituting "the court".

(8)  The English version of clause 138.4 (7) (e) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is repealed and the following substituted:

(e) the existence, if any, and the nature of any system designed to ensure that the responsible issuer meets its continuous disclosure obligations;

(9)  Subsection 138.4 (8) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a proceeding" in the portion before clause (a) and substituting "an action".

(10)  Subsections 138.4 (9) and (10) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, are repealed and the following substituted:

Forward-looking information

(9)  A person or company is not liable in an action under section 138.3 for a misrepresentation in forward-looking information if the person or company proves all of the following things:

1. The document or public oral statement containing the forward-looking information contained, proximate to that information,

i. reasonable cautionary language identifying the forward-looking information as such, and identifying material factors that could cause actual results to differ materially from a conclusion, forecast or projection in the forward-looking information, and

ii. a statement of the material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection set out in the forward-looking information.

2. The person or company had a reasonable basis for drawing the conclusions or making the forecasts and projections set out in the forward-looking information.

Same

(9.1)  The person or company shall be deemed to have satisfied the requirements of paragraph 1 of subsection (9) with respect to a public oral statement containing forward-looking information if the person who made the public oral statement,

(a) made a cautionary statement that the oral statement contains forward-looking information;

(b) stated that,

(i) the actual results could differ materially from a conclusion, forecast or projection in the forward-looking information, and

(ii) certain material factors or assumptions were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information; and

(c) stated that additional information about,

(i) the material factors that could cause actual results to differ materially from the conclusion, forecast or projection in the forward-looking information, and

(ii) the material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information,

is contained in a readily-available document or in a portion of such a document and has identified that document or that portion of the document.

Same

(9.2)  For the purposes of clause (9.1) (c), a document filed with the Commission or otherwise generally disclosed shall be deemed to be readily available.

Exception

(10)  Subsection (9) does not relieve a person or company of liability respecting forward-looking information in a financial statement required to be filed under this Act or forward-looking information in a document released in connection with an initial public offering.

(11)  Subsection 138.4 (11) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a proceeding" in the portion before clause (a) and substituting "an action".

(12)  Subsection 138.4 (12) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a proceeding" and substituting "an action".

(13)  Subsection 138.4 (13) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a proceeding" and substituting "an action".

(14)  Subsection 138.4 (14) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a proceeding" in the portion before clause (a) and substituting "an action".

(15)  Subsection 138.4 (15) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a proceeding" in the portion before clause (a) and substituting "an action".

14.  Subparagraph 3 i of subsection 138.5 (2) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is repealed and the following substituted:

i. if the issuer's securities trade on a published market, the trading price of the issuer's securities on the principal market (as such terms are defined in the regulations) for the 10 trading days following the public correction of the misrepresentation or the disclosure of the material change in the manner required under this Act, or

15.  (1)  Subsection 138.6 (1) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a proceeding" and substituting "an action".

(2)  Subsection 138.6 (2) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a proceeding" and substituting "an action".

16.  Subsection 138.7 (1) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a proceeding" in the portion before clause (a) and substituting "an action".

17.  Subsection 138.8 (1) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "No proceeding" at the beginning and substituting "No action".

18.  (1)  Section 138.9 of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a proceeding" in the portion before clause (a) and substituting "an action".

(2)  Clause 138.9 (a) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a proceeding" and substituting "an action".

19.  Section 138.10 of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is repealed and the following substituted:

Restriction on discontinuation, etc., of action

138.10  An action under section 138.3 shall not be discontinued, abandoned or settled without the approval of the court given on such terms as the court thinks fit including, without limitation, terms as to costs, and in determining whether to approve the settlement of the action, the court shall consider, among other things, whether there are any other actions outstanding under section 138.3 or under comparable legislation in other provinces or territories in Canada in respect of the same misrepresentation or failure to make timely disclosure.

20.  Section 138.11 of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a proceeding" and substituting "an action".

21.  Section 138.12 of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a proceeding" and substituting "an action".

22.  Section 138.13 of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is repealed and the following substituted:

No derogation from other rights

138.13  The right of action for damages and the defences to an action under section 138.3 are in addition to, and without derogation from, any other rights or defences the plaintiff or defendant may have in an action brought otherwise than under this Part.

23.  (1)  Section 138.14 of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "proceeding" in the portion before clause (a) and substituting "action".

(2)  Subclause 138.14 (a) (ii) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a proceeding" and substituting "an action".

(3)  Subclause 138.14 (b) (ii) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a proceeding" and substituting "an action".

(4)  Subclause 138.14 (c) (ii) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 185, is amended by striking out "a proceeding" and substituting "an action".

24.  Subsection 142 (2) of the Act, as amended by the Statutes of Ontario, 1994, chapter 11, section 378 and 2002, chapter 22, section 186, is amended by striking out the portion before clause (a) and substituting the following:

Exceptions

(2)  Subsections 13 (1), (3) and (4), sections 60, 122, 126, 126.1, 126.2, 129, 130, 130.1, 131, 134 and 135, Part XXIII.1 and section 139 do not apply to,

. . . . .

25.  Paragraph 55.2 of subsection 143 (1) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 22, section 187, is repealed and the following substituted:

55.2 Providing for the application of Part XXIII.1 to the acquisition of an issuer's security pursuant to a distribution that is exempt from section 53 or 62 and to the acquisition or disposition of an issuer's security in connection with or pursuant to a takeover bid or issuer bid.

55.2.1 Prescribing transactions or classes of transactions for the purposes of clause 138.2 (d).

26.  Subsection 143.12 (1) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 33, section 8, is repealed and the following substituted:

Review by Select or Standing Committee

Appointment of first advisory committee

(1)  On or before May 31, 2007, the Minister shall appoint an advisory committee to review the legislation, regulations and rules relating to matters dealt with by the Commission and the legislative needs of the Commission.

Appointment of subsequent advisory committees

(1.1)  The Minister shall appoint an advisory committee to perform the functions described in subsection (1) not later than 48 months after the appointment of the previous advisory committee appointed under subsection (1) or this subsection.

Commencement

27.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

Same

(2)  Sections 4 and 10 to 23 come into force on a day to be named by proclamation of the Lieutenant Governor.

SCHEDULE 35
AMENDMENT TO THE TAX TERMINOLOGY HARMONIZATION ACT, 2004

1.  Subsection 5 (2) of the Tax Terminology Harmonization Act, 2004 is amended by striking out "Subsections 1 (1) and (2) and sections 2, 3 and 4" at the beginning and substituting "Subsections 1 (1) and (2) and 2 (1) and (2) and sections 3 and 4".

Commencement

2.  (1)  Subject to subsection (2), this Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

Same

(2)  Section 1 shall be deemed to have come into force on November 4, 2004.

SCHEDULE 36
AMENDMENTS TO THE TOBACCO TAX ACT

1.  Section 1 of the Tobacco Tax Act, as amended by the Statutes of Ontario, 1991, chapter 48, section 1, 1992, chapter 28, section 1, 1994, chapter 18, section 8, 1998, chapter 34, section 105, 2000, chapter 42, section 97, 2001, chapter 23, section 219 and 2004, chapter 7, section 19, is amended by adding the following definition:

"acquire" means, in respect of tobacco, to obtain tobacco by any means, including through manufacturing; ("acquérir")

2.  Subsections 5 (7) and (8) of the Act are amended by striking out "a notarial copy of the registration certificate" wherever it appears and substituting in each case "a true copy of the registration certificate".

3.  (1)  Subsection 6 (3) of the Act is repealed and the following substituted:

Information

(3)  Every interjurisdictional transporter shall maintain the information prescribed by the Minister in respect of every shipment of tobacco in bulk transported by the interjurisdictional transporter into or out of Ontario and shall maintain that information in a form approved by the Minister.

(2)  Subsection 6 (4) of the Act is amended by striking out "the notarial copy of the registration certificate" and substituting "a true copy of the registration certificate".

(3)  Clause 6 (5) (b) of the Act is repealed and the following substituted:

(b) the information required under subsection (3); and

(4)  Clause 6 (5) (c) of the Act is amended by striking out "the notarial copy of the registration certificate" and substituting "the true copy of the registration certificate".

(5)  Subsection 6 (11) of the Act is repealed and the following substituted:

Right to possession

(11)  For the purposes of an application under subsection (10), the applicant has the right to possession of the tobacco if,

(a) the driver of the vehicle, when the tobacco was seized, held a true copy of the registration certificate issued under this Act to the interjurisdictional transporter;

(b) in the case of tobacco transported on behalf of an importer or exporter, the driver of the vehicle, when the tobacco was seized, held a true copy of the registration certificate issued under this Act to the importer or exporter or held a true copy of the transit permit issued under this Act to the owner of the tobacco; and

(c) when the tobacco was seized, the driver of the vehicle held the information required under subsection (3) or the operator of the vehicle delivered the information required under subsection (3) within five days after the seizure.

4.  The Act is amended by adding the following section:

Unauthorized delivery of unmarked cigarettes

9.1  (1)  No person shall deliver, or cause to be delivered, unmarked cigarettes to a person in Ontario who is not authorized under this Act or the regulations to purchase, possess, store or sell unmarked cigarettes.

Same

(2)  Unless authorized under this Act or the regulations, no person shall deliver, or cause to be delivered, to another person unmarked cigarettes that are intended to be sold to consumers liable to pay tax under section 2.

Penalty

(3)  Every person who contravenes subsection (1) or (2) shall pay a penalty, when assessed therefor, equal to the tax that would be payable if the unmarked cigarettes were marked cigarettes sold to a consumer liable to pay tax under section 2.

Offence

(4)  Every person who contravenes subsection (1) or (2) is guilty of an offence and on conviction is liable to,

(a) a fine of not less than $1,000 and not more than $10,000; and

(b) an additional fine of not less than three times the amount of tax that would have been payable if the unmarked cigarettes were marked cigarettes sold to a consumer liable to pay tax under section 2.

5.  (1)  Subsection 10 (3) of the Act is amended by striking out "a notarial copy of the permit" at the end and substituting "a true copy of the permit".

(2)  Subsection 10 (4) of the Act is amended by striking out "notarial copies of the transit permit" at the end and substituting "true copies of the transit permit".

6.  The Act is amended by adding the following section:

Agreement to share information

13.4  For the purposes of enforcing and administering this Act, the Minister, on behalf of Her Majesty in right of Ontario, may enter into an agreement with the Government of Canada respecting the sharing of information gathered under this Act.

7.  (1)  Subsection 19 (3.1) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 108, is amended by striking out "subsections (3.2) and (3.3)" and substituting "subsections (3.2) to (3.3)".

(2)  Section 19 of the Act, as amended by the Statutes of Ontario, 1994, chapter 18, section 8, 2000, chapter 42, section 108 and 2001, chapter 23, section 229, is amended by adding the following subsections:

Exception, waiver of limitation

(3.2.1)  Despite subsection (3.1), the Minister may assess or reassess a person at any time if the person has filed with the Minister a waiver in a form approved by the Minister before the expiry of the time provided in subsection (3.1).

Revocation of waiver

(3.2.2)  If a person files a waiver under subsection (3.2.1), the person may file a notice of revocation of the waiver in a form approved by the Minister.

Effect of revocation

(3.2.3)  If a person files a notice of revocation of the waiver under subsection (3.2.2), the Minister shall not issue an assessment or reassessment under subsection (3.1) in reliance on the waiver more than one year after the date on which the notice of revocation is filed.

8.  The Act is amended by adding the following section:

Seizure of unmarked cigarettes

23.1  (1)  If, on an inspection under subsection 23 (1), a person authorized by the Minister discovers that a wholesaler or retail dealer is in possession of unmarked cigarettes, and the person has reasonable and probable grounds to believe that the possession is contrary to the provisions of clause 29 (1) (b), the person may, subject to subsection (2), seize, impound, hold and dispose of the unmarked cigarettes.

Application to court

(2)  Unmarked cigarettes seized under subsection (1) are forfeited to Her Majesty to be disposed of as the Minister directs unless, within 30 days following the seizure, the person from whom the unmarked cigarettes were seized, or the owner of the unmarked cigarettes, applies to the Superior Court of Justice to establish the right to possession of the unmarked cigarettes.

Right to possession of unmarked cigarettes

(3)  For the purposes of an application under subsection (2), the applicant has a right to possession of the cigarettes if, at the time the seizure was made, the premises from which the unmarked cigarettes were seized was a mark-point or designated warehouse and the applicant was the holder of a valid permit issued under subsection 9 (1) with respect to the premises.

Disposal pending final determination by court

(4)  Where a final order is not made within 60 days after the filing of an application under subsection (2), the Minister may dispose of the unmarked cigarettes and retain the proceeds, if any, pending the determination of the application.

Order

(5)  If the court is satisfied on an application under subsection (2) that the applicant has a right to possession of the unmarked cigarettes, the court may order that the unmarked cigarettes be returned to the applicant or that the proceeds of sale of the unmarked cigarettes be paid to the applicant.

Forfeiture after dismissal of application

(6)  On dismissal of an application under subsection (2) and the expiry of the appeal period provided therefor, the unmarked cigarettes are forfeited to Her Majesty to be disposed of as the Minister directs.

Proceeds of sale

(7)  Where a sale of unmarked cigarettes is authorized under subsection (2) or (6), or where the proceeds of a sale are retained under subsection (4) and the application is dismissed, the proceeds of the sale remaining after payment of the costs incurred by the Minister in seizing, storing and disposing of the unmarked cigarettes shall be paid into the Consolidated Revenue Fund.

9.  (1)  Subsection 24 (1) of the Act, as amended by the Statutes of Ontario, 1991, chapter 48, section 4, is amended by striking out "and" at the end of clause (b) and by striking out clause (c) and substituting the following:

(c) subject to subsections (2), (2.2) and (2.4), may seize and take away any of the manifests, records, accounts, vouchers, papers or things and retain them until they are produced in any court proceedings; and

(d) may use any investigative technique, procedure or test that is, in the person's opinion, necessary to determine whether cigarettes found during a detention are marked or stamped in accordance with this Act and the regulations.

(2)  Subsection 24 (2) of the Act is repealed and the following substituted:

Application for retention of documents

(2)  If documents are seized under subsection (1), the Minister shall, within 14 days, apply to a justice under the Provincial Offences Act for an order to permit the retention of the documents.

Application to include information under oath

(2.1)  An application under subsection (2) must be supported by information under oath from a person who has reasonable and probable grounds for believing that the documents may afford evidence of a contravention of this Act or the regulations.

Order of justice re seized documents

(2.2)  If the justice who considers an application under subsection (2) is satisfied, on reasonable grounds, that documents seized may afford evidence of a contravention of this Act or the regulations, the justice may, without notice, order that the documents be retained by a person named in the order for no longer than three months from the date of seizure and may make any provisions that, in the opinion of the justice, are necessary for the preservation of the documents.

Same

(2.3)  If the justice who considers an application under subsection (2) is not satisfied, on reasonable grounds, that documents seized may afford evidence of a contravention of this Act or the regulations, he or she may direct that the documents be returned to the person from whom they were seized.

Time limit for retention

(2.4)  No documents shall be retained under an order made under subsection (2.2) for a period of more than three months from the date of seizure unless, before the expiry of that period,

(a) an application to the justice is made for retention of the documents for an additional period and the justice is satisfied that, having regard to the nature of the inspection, the further retention of the documents for a specified period is warranted and makes an order for the continuing retention of the documents for the specified period;

(b) a proceeding is instituted in which the retained document may be required; or

(c) the owner of the documents consents to the continued retention of the documents.

(3)  Subsection 24 (3) of the Act, as amended by the Statutes of Ontario, 2004, chapter 7, section 30, is repealed and the following substituted:

Seizure and disposal of tobacco

(3)  Subject to subsections (4), (4.1), (5) and (6), a person who is authorized by the Minister for the purpose may seize, impound, hold and dispose of tobacco found following a detention under subsection (1) if one of the following circumstances exists:

1. More than 200 unmarked cigarettes are found in the control of a person who does not hold a permit under subsection 9 (1) and who is not otherwise authorized by this Act or the regulations to purchase, possess, store, sell or transport unmarked cigarettes.

2. More than 200 unmarked cigarettes are being transported or stored in Ontario for a person described in paragraph 1.

3. Tobacco in bulk is found in the control of a person who has not been designated as a collector under subsection 4 (1) or (1.3), does not hold a registration certificate under subsection 5 (1) or 7 (1) and does not hold a permit under subsection 3 (1) or 8 (2).

4. Tobacco in bulk is being transported or stored in Ontario for a person described in paragraph 3.

(4)  Subsection 24 (4) of the Act, as amended by the Statutes of Ontario, 1998, chapter 34, section 107, is amended by striking out the portion before clause (a) and substituting the following:

Saving, tobacco in bulk

(4)  Despite subsection (3), if tobacco found following a detention under subsection (1) is tobacco in bulk, no seizure, impounding, holding or disposal shall be made of the tobacco in bulk if the person from whom it would have been seized,

. . . . .

(5)  Clause 24 (4) (d) of the Act is repealed and the following substituted:

(d) has in the person's possession the original or a true copy of a transit permit issued to the owner of the tobacco in bulk under subsection 10 (1).

(6)  Section 24 of the Act, as amended by the Statutes of Ontario, 1991, chapter 48, section 4, 1994, chapter 18, section 8, 1998, chapter 34, section 107, 2001, chapter 23, section 234 and 2004, chapter 7, section 30, is amended by adding the following subsection:

Saving, unmarked cigarettes

(4.1)  Despite subsection (3), where tobacco found following a detention under subsection (1) is in the form of unmarked cigarettes, no seizure, impounding, holding or disposal shall be made of the tobacco if the person from whom it would have been seized,

(a) is an interjurisdictional transporter registered under subsection 6 (1) who has the documents and information described in subsection 6 (5) in their possession; or

(b) has in their possession the original or a true copy of a transit permit issued to the owner of the unmarked cigarettes under subsection 10 (1).

(7)  Subsection 24 (5) of the Act, as amended by the Statutes of Ontario, 2001, chapter 23, section 234, is amended by striking out "in bulk" wherever it appears.

(8)  Subsection 24 (6) of the Act is repealed and the following substituted:

Right to possession of tobacco

(6)  For the purposes of an application under subsection (5), the applicant has a right to possession of the tobacco if the owner, or the person for whom the tobacco was being transported, was, at the time the seizure was made, a person specified in subsection (3), (4) or (4.1) as someone from whom tobacco was not to be seized.

(9)  Subsections 24 (7), (8), (9) and (10) of the Act are amended by striking out "in bulk" wherever it appears.

(10)  Subsection 24 (12) of the Act, as amended by the Statutes of Ontario, 2001, chapter 23, section 234, is repealed and the following substituted:

Penalty

(12)  Every person from whom tobacco is seized under subsection (3) shall pay a penalty, when assessed therefor, equal to three times the tax that would have been payable under section 2 if the seized tobacco had been sold to a consumer liable to pay tax under this Act.

10.  (1)  Section 29 of the Act, as amended by the Statutes of Ontario, 1994, chapter 18, section 8 and 2004, chapter 7, section 31, is amended by adding the following subsections:

Seizure of unmarked cigarettes

(1.1)  If a person authorized by the Minister has reasonable and probable grounds to believe that a person is in possession of unmarked cigarettes contrary to the provisions of clause (1) (b), the person may, subject to subsection (1.2), stop and detain the person and may seize, impound, hold and dispose of the unmarked cigarettes.

Application

(1.2)  Unmarked cigarettes seized under subsection (1.1) are forfeited to Her Majesty to be disposed of as the Minister directs unless, within 30 days following the seizure, the person from whom the unmarked cigarettes were seized, or the owner of the unmarked cigarettes, applies to the Superior Court of Justice to establish a right to possession of the unmarked cigarettes.

Right to possession of unmarked cigarettes

(1.3)  For the purposes of an application under subsection (1.2), the applicant has a right to possession of the unmarked cigarettes if, at the time the seizure was made,

(a) the applicant was a consumer with possession or control of not more than 200 unmarked cigarettes that were not for sale and were not kept or offered for sale; or

(b) the applicant was the holder of a valid permit issued under subsection 9 (1).

Disposal pending final determination by court

(1.4)  If a final order under this section is not made within 60 days after the filing of the application under subsection (1.2), the Minister may dispose of the unmarked cigarettes and retain the proceeds, if any, pending the determination of the application.

Order

(1.5)  If the court is satisfied on an application under subsection (1.2) that the applicant has a right to possession of the unmarked cigarettes, the court may order that the unmarked cigarettes be returned to the applicant or that the proceeds of sale of the unmarked cigarettes be paid to the applicant.

Forfeiture after dismissal of application

(1.6)  On dismissal of an application under subsection (1.2) and the expiry of the appeal period provided therefor, the unmarked cigarettes are forfeited to Her Majesty to be disposed of as the Minister directs.

Proceeds of sale

(1.7)  Where a sale of unmarked cigarettes is authorized under subsection (1.2) or (1.6), or where the proceeds of a sale are retained under subsection (1.4) and the application is dismissed, the proceeds of the sale remaining after payment of the costs incurred by the Minister in seizing, storing and disposing of the unmarked cigarettes shall be paid into the Consolidated Revenue Fund.

(2)  Subsection 29 (2.1) of the Act, as re-enacted by the Statutes of Ontario, 2004, chapter 7, section 31, is repealed and the following substituted:

Forfeiture

(2.1)  All unmarked cigarettes in respect of which a person has been convicted of an offence under subsection (2) shall be forfeited to Her Majesty to be disposed of in any manner determined by the Minister.

11.  The Act is amended by adding the following section:

Prohibition on possession of untaxed cigars and other tobacco

Definition

29.1  (1)  In this section,

"other tobacco" means tobacco other than cigarettes and cigars.

Possession of untaxed cigars and other tobacco

(2)  No person shall, unless permitted to do so under this Act or the regulations, have in his or her possession more than 50 cigars or more than one kilogram of other tobacco for which the person cannot prove that the tax that would be payable under section 2 has been paid.

Offence

(3)  Every person who contravenes subsection (2) is guilty of an offence and on conviction is liable to,

(a) a fine of not less $500 and not more than $10,000; and

(b) an additional fine of not less than three times the amount of tax that would have been payable under section 2 if the cigars or other tobacco had been sold to a consumer liable to pay tax under this Act.

Imprisonment

(4)  Where a person convicted of an offence under subsection (3) is found to have been in possession of 200 or more cigars or 10 kilograms or more of other tobacco contrary to subsection (2), the court may impose a term of imprisonment of not more than two years in addition to any fines levied under subsection (3).

Forfeiture

(5)  All cigars and other tobacco in respect of which a person is convicted of an offence under this section shall be forfeited to Her Majesty to be disposed of in any manner determined by the Minister.

Penalty, selling

(6)  Every person who, except as permitted under this Act or the regulations, sells or offers or keeps for sale in Ontario cigars or other tobacco for which the person cannot prove that the tax that would be payable under section 2 has been paid shall pay a penalty, when assessed therefor, in respect of all the cigars and other tobacco sold or offered or kept for sale equal to three times the amount of tax that would have been payable under section 2 had the cigars or other tobacco been sold to a consumer liable to pay tax under this Act.

Penalty, possession

(7)  Every person who, except as permitted under this Act or the regulations,

(a) has in his or her possession more than 50 cigars or more than one kilogram of other tobacco for which the person cannot prove that the tax that would be payable under section 2 has been paid; or

(b) has in his or her possession for the purposes of sale or has received or purchased for the purposes of sale any amount of cigars or other tobacco for which the person cannot prove that the tax that would be payable under section 2 has been paid,

shall pay a penalty, when assessed therefor, equal to three times the amount of tax that would have been payable under section 2 had the cigars or other tobacco been sold to a consumer liable to pay tax under this Act.

Additional penalty

(8)  Where the amount of cigars referred to in subsection (6) or (7) is 200 or more or the amount of other tobacco referred to in subsection (6) or (7) is 10 kilograms or more, a person liable to a penalty under that subsection may be assessed an additional penalty equal to five times the amount of tax that would have been payable under section 2 had the cigars or other tobacco been sold to a consumer liable to pay tax under this Act.

12.  Subsections 31 (3) and (4) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 34, section 109, are repealed and the following substituted:

Forfeiture

(3)  All tobacco in respect of which a person is convicted of an offence under subsection (2) shall be forfeited to Her Majesty to be disposed of in any manner determined by the Minister, to the extent that it has not been forfeited or disposed of under another provision of this Act.

13.  The Act is amended by adding the following section:

Disclosure of names and addresses

32.1  (1)  The Minister shall disclose the names and addresses of the following persons for purposes related to the administration of this Act and may impose conditions and restrictions with respect to the disclosure:

1. Each person who holds a wholesaler's permit under this Act.

2. Each person who is designated under subsection 4 (1) or (1.3) to collect tax.

3. Each importer or exporter who holds a registration certificate under subsection 5 (1).

4. Each interjurisdictional transporter who holds a registration certificate under subsection 6 (1).

5. Each manufacturer who holds a registration certificate under subsection 7 (1).

6. Each tear tape manufacturer who holds a permit under subsection 7.1 (1).

7. Each person who holds a permit referred to in subsection 8 (2) to mark cigarettes.

8. Each person who holds a permit referred to in subsection 8 (3) to stamp cigarettes.

9. Each person who holds a permit referred to in subsection 9 (1) to purchase and sell unmarked cigarettes.

Exception

(2)  Despite subsection (1), the Minister shall not disclose a person's name or address if, in the Minister's opinion, the disclosure is not necessary for the purposes of this Act.

14.  (1)  Subsection 35 (2.1) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 34, section 110 and amended by 2004, chapter 7, section 34, is repealed and the following substituted:

Forfeiture

(2.1)  All tobacco in respect of which a person is convicted of an offence under subsection (2) shall be forfeited to Her Majesty to be disposed of in any manner determined by the Minister, to the extent that it has not been forfeited or disposed of under another provision of this Act.

(2)  Subsection 35 (2.2) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 34, section 110, is repealed.

15.  The Act is amended by adding the following sections:

Order for production

Definitions

36.1  (1)  In this section,

"document" means a record, including a record prepared or stored in an electronic format, respecting the manufacture, purchase, sale, transportation, storage, distribution, delivery, consignment or possession of a tobacco product, and includes a ledger, account, invoice, receipt, voucher, banking record, bill of lading, memorandum, correspondence and e-mail message; ("document")

"justice" means a justice under the Provincial Offences Act; ("juge")

"person" means an individual, corporation, partnership, syndicate, trust or other business entity whether incorporated or not. ("personne")

Application for order

(2)  A provincial offences officer who is investigating a contravention of this Act or the regulations may make an application to a justice without notice for an order requiring any person, other than a person who is a subject of the investigation, to produce for inspection a document that is relevant to the investigation.

Information included in an application

(3)  An application under subsection (2) shall include information in writing under oath that there are reasonable grounds to believe that,

(a) an offence under this Act has been committed;

(b) the document or documents described in the application may afford evidence of the commission of the offence; and

(c) the person who is the subject of the application has possession or control of the document or documents described in the application.

Order

(4)  A justice who is satisfied that the requirements of subsection (3) have been met may issue an order requiring the person to produce for inspection the document or documents within such reasonable time as is stipulated in the order.

Terms and conditions

(5)  A justice may include in an order such terms and conditions as the justice considers necessary in the circumstances and, without restricting the generality of the foregoing, may include terms and conditions,

(a) to protect a communication between a solicitor and a client that may be privileged;

(b) to prohibit access to information relating to the order or to documents produced by the person to whom the order is directed;

(c) relating to the service of, or compliance with, the order.

Self-incrimination

(6)  No person is excused from complying with an order made under this section on the grounds that a document required to be produced under the order may tend to incriminate them or subject them to any proceeding or penalty.

Service on unincorporated person

(7)  An order under this section that is directed to an unincorporated person shall be served by a provincial offences officer by delivering it personally to the person, if the person is an individual, or to an owner, partner, representative or agent of the unincorporated person, in any other case.

Service on incorporated person

(8)  An order under this section that is directed to a person that is a corporation shall be served by a provincial offences officer by delivering it personally to an officer, director, manager or agent of the corporation, or to an individual apparently in charge of premises in Ontario that are occupied or controlled by the corporation.

Service outside Ontario

(9)  An order under this section may be served outside Ontario by sending it by registered mail to the person to whom it is directed.

Document in electronic format

(10)  If a document described in an order issued under this section was prepared or is stored or maintained in an electronic format, the person to whom the order is directed or upon whom it is served shall, on request, provide the officer serving the order with a paper printout or other legible copy of the document.

Photocopies

(11)  The person to whom an order issued under this section is directed or the person upon whom it is served shall, on request, permit the officer who serves the order to prepare a photocopy of any document described in the order and the officer who serves the order may certify the photocopy as a true copy of the original document.

Report to the justice

(12)  An officer who serves an order issued under this section shall, within 14 days following the expiry of the period specified for compliance with the order, file a report with the justice who issued the order or, if the justice who issued the order is unavailable, with the Regional Senior Justice of the Peace for the region in which the order was served, containing particulars of the date and manner of service and the subsequent compliance or non-compliance with the order by the person to whom the order is directed.

Application for exemption

(13)  The person to whom an order under this section is directed may, before the date specified for compliance with the order, apply in writing to the justice who issued the order or, if the justice who issued the order is unavailable, to the Regional Senior Justice of the Peace for the region in which the order was served, for an exemption from the requirement to produce a document described in the order.

Material filed with Regional Senior Justice

(14)  If a report under subsection (12) or an application under subsection (13) is filed with a Regional Senior Justice of the Peace instead of with the justice who issued the order, the Regional Senior Justice of the Peace may assign the matter to another justice in the region in which the order was served for such further action as may be necessary in the circumstances.

Notice by applicant

(15)  The person to whom an order is directed shall give written notice to the officer who served the order or to the Minister of his or her intention to make an application under subsection (13) and shall give the notice not less than 10 days before the date specified for compliance with the order.

Suspension of duty to comply

(16)  If an application is made under subsection (13), the duty to comply with an order is suspended with respect to a document specified in the application until a justice makes a determination in respect of the application.

Exemption

(17)  A justice may exempt an applicant from complying with an order issued under this section if he or she is satisfied that,

(a) production of a document specified in the order would disclose information that is privileged or otherwise protected by law from disclosure;

(b) it is unreasonable to require the applicant to produce the document; or

(c) the document is not in the possession or control of the applicant.

May impose conditions if not exempt

(18)  If a justice determines that an applicant is not exempt from complying with an order or a portion of it, the justice may impose such conditions for compliance on the applicant as he or she considers necessary and appropriate in the circumstances.

Offence

(19)  Every person who fails to comply with an order issued under this section is guilty of an offence and is liable on conviction to a fine of not less than $200 for each day during which the failure to comply continues.

Authorization to use investigative technique, procedure or test

36.2  (1)  A person authorized by the Minister may include in an application for a search warrant under section 158 of the Provincial Offences Act a request for authorization to use any investigative technique, procedure or test described in the warrant to obtain evidence of a contravention of this Act or the regulations.

Same

(2)  A justice considering a request under subsection (1) may issue a warrant authorizing the use of an investigative technique, procedure or test if the justice is satisfied on information under oath that there are reasonable grounds to believe that evidence relating to the commission of an offence under this Act or the regulations will be obtained through the use of the investigative technique, procedure or test.

16.  Section 37 of the Act is repealed and the following substituted:

Interjurisdictional settlement of competing tax claims

37.  (1)  For the purpose of simplifying compliance with this Act and the administration and collection of the tax imposed by this Act, and in order to provide for reciprocal arrangements to settle competing claims for tax on the acquisition and use of tobacco by persons carrying on business in more than one jurisdiction, the Minister may enter into an agreement, on such terms and conditions as are considered necessary and expedient, with another jurisdiction providing that tax paid to one jurisdiction on the acquisition there of tobacco that is transferred to the other jurisdiction and that becomes liable to tax in the other jurisdiction under this Act or any similar legislation in force in the other jurisdiction may be paid by one jurisdiction to the other in reduction of the liability to the tax arising in the jurisdiction receiving the payment and in lieu of refunding the tax to the person who paid it and who became liable for the similar tax in the other jurisdiction.

Payment for services

(2)  An agreement entered into under subsection (1) may authorize payments to the other jurisdiction for services provided under the agreement and may authorize the other jurisdiction to deduct the amount of the payments from amounts payable to the Minister under the agreement.

Commencement

17.  This Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

SCHEDULE 37
AMENDMENTS TO THE TREASURY BOARD ACT, 1991

1.  Section 7 of the Treasury Board Act, 1991, as amended by the Statutes of Ontario, 2002, chapter 8, Schedule N, section 1, is repealed and the following substituted:

Special warrants

7.  (1)  If the Legislature is not in session and a matter arises that requires the incurring of expenditures for which there is no appropriation by the Legislature or for which the appropriation is insufficient, the Lieutenant Governor in Council, upon the report of the Board estimating the amount required for the expenditure, may order a special warrant to be prepared and to be signed by the Lieutenant Governor, authorizing the incurring of expenditures in the amount estimated to be required, and the amount shall be incurred as specified in the special warrant.

Where appropriation exists

(2)  Subject to subsection (4), if a special warrant is issued with respect to an expenditure for which there is an appropriation, the amount provided by the special warrant shall be added to and shall be deemed to be part of the appropriation for the fiscal year in which the special warrant is issued.

Where no appropriation exists

(3)  Subject to subsection (4), if a special warrant is issued with respect to an expenditure for which there is no appropriation, the amount provided by the special warrant shall be deemed to be an appropriation for the fiscal year in which the special warrant is issued.

Warrant may apply to next fiscal year

(4)  A special warrant issued in a fiscal year may provide that it applies with respect to the next fiscal year and it is an appropriation for that next fiscal year.

2.  Section 7.1 of the Act, as enacted by the Statutes of Ontario, 2002, chapter 8, Schedule N, section 2, is repealed.

3.  Section 8 of the Act, as amended by the Statutes of Ontario, 2002, chapter 8, Schedule N, section 3, is repealed and the following substituted:

Board orders

8.  (1)  Despite section 11.2 of the Financial Administration Act, the Board may by order authorize expenditures to supplement the amount of any appropriation for a fiscal year if the amount provided in the appropriation is insufficient to carry out the purpose for which the appropriation was made.

Report required

(2)  An order may be made under subsection (1) only if the Board has received from the ministry responsible for the program to which the proposed supplementary appropriation relates, or from a person or officer prescribed by the regulations made under this Act, a report in writing setting out the necessity for further expenditures and the reason why the appropriation, unless supplemented, is insufficient.

Board orders in favour of contingency fund

(3)  Despite section 11.2 of the Financial Administration Act, the Board may by order supplement the amount of any appropriation that represents a reserve for future contingencies if the Board considers it advisable to do so.

Expenditures to be offset by reduction on other appropriation

(4)  An order under subsection (1) or (3) shall provide that the supplementary appropriation be offset by reducing the amount available under any other appropriation for the same fiscal year that is not exhausted and that, in the opinion of the Board, is unlikely to be fully exhausted in the fiscal year.

Timing

(5)  An order under subsection (1) or (3) may be made at any time before the books of the Government of Ontario for the fiscal year are closed.

Post-fiscal year-end Board orders to be reported in the Public Accounts

(6)  If the Board issues an order under this section at any time after the end of a fiscal year to supplement the amount of an appropriation for that fiscal year because the appropriation became insufficient as a result of an adjustment arising out of the audit of the Public Accounts for that fiscal year, the ministry responsible for the program that received the supplementary appropriation shall prepare a statement setting out the circumstances that gave rise to the need for the order and the statement shall be included in the Public Accounts for that fiscal year.

4.  Section 8.1 of the Act, as enacted by the Statutes of Ontario, 2002, chapter 8, Schedule N, section 4, is repealed.

Commencement

5.  This Schedule comes into force on the day the Budget Measures Act (Fall), 2004 receives Royal Assent.

SCHEDULE 38
AMENDMENTS RELATING TO CLASSES OF INSURANCE

Corporations Act

1.  Subsection 140 (1) of the Corporations Act is repealed and the following substituted:

Insurance Act definitions

(1)  In this Part, unless the context otherwise requires, words and expressions defined under section 1 or 43 of the Insurance Act have the same meaning as in that Act.

Family Law Act

2.  (1)  The English version of paragraph 4 of subsection 4 (2) of the</