Budget Measures Act (Housing Price Stability and Ontario Seniors' Public Transit Tax Credit), 2017 Sousa, Hon. Charles Minister of Finance — Bill 134 (41st Parliament, 2nd Session)

Bill 134, 41-2

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Bill 134, Budget Measures Act (Housing Price Stability and Ontario Seniors' Public Transit Tax Credit), 2017

Sousa, Hon. Charles Minister of Finance

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[41] Bill 134 Royal Assent (PDF)

EXPLANATORY

NOTE

This Explanatory Note was written as a reader's aid to

Bill 134 and does not form part of the law.

Bill 134 has been enacted as

Chapter 17 of the Statutes of Ontario, 2017.

The

Bill implements measures contained in the 2017 Ontario Budget. Amendments are

made to the Land Transfer Tax Act and the Taxation Act, 2007 . The major elements of the Bill are

described below.

SCHEDULE

LAND TRANSFER TAX ACT

Section

2 of the Land Transfer Tax Act is amended to

provide that an additional tax is payable on certain conveyances of land by

which designated land that is located within a specified region is conveyed to

a foreign entity or a taxable trustee. The new

section 2.1 sets out special

rules governing the additional tax and provides for exemptions and rebates.

Complementary amendments are also made.

SCHEDULE

TAXATION ACT, 2007

The

Schedule amends the Taxation Act, 2007 to implement

an Ontario seniors' public transit tax credit.

The

Ontario seniors' public transit tax credit is set out in the new

section

103.0.1 of the Act. The credit is refundable and will apply for the 2017 and subsequent

taxation years. The maximum available credit is $225 for the 2017 taxation year

and $450 for subsequent taxation years. Consequential amendments are made to

sections 84 and 176 of the Act.

Bill 134 2017

Act to implement 2017 Budget measures

Contents

of this Act

Commencement

Short

title

Schedule 1

Land

Transfer Tax Act

Schedule 2

Taxation

Act, 2007

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

(1) Subject

to subsections (2) and (3), this Act comes into force on the day it receives

Royal Assent.

(2) The

Schedules to this Act come into force as provided in each Schedule.

(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 (Housing Price

Stability and Ontario Seniors' Public Transit Tax Credit), 2017 .

SCHEDULE 1

LAND TRANSFER TAX ACT

Subsection 1 (1) of the Land Transfer Tax Act is

amended by adding the following

definitions:

"designated

land" means,

(

a) land

that contains at least one and not more than six single family residences; and

(

b) such

other land as may be prescribed by the Minister; ("bien-fonds désigné")

"foreign

corporation" means a corporation that is one of the following:

1. A

corporation that is not incorporated in Canada.

2. A

corporation, the shares of which are not listed on a stock exchange in Canada,

that is incorporated in Canada and is controlled, directly or indirectly in any

manner whatever, within the meaning of

section 256 of the Income

Tax Act (Canada), by one or more of the following:

i. A

foreign national.

ii. A

corporation that is not incorporated in Canada.

iii. A

corporation that would, if each share of the corporation's capital stock that

is owned by a foreign national or by a corporation described in paragraph 1

were owned by a particular person, be controlled, directly or indirectly in any

manner whatever, within the meaning of

section 256 of the Income

Tax Act (Canada), by the particular person; ("personne morale

étrangère")

"foreign

entity" means a foreign corporation or a foreign national; ("entité étrangère")

"foreign

national" means an individual who is a foreign national as defined in

subsection 2 (1) of the Immigration and Refugee Protection

Act (Canada); ("étranger")

"Greater

Golden Horseshoe Region" means the area of land comprised of the geographic

areas of the following municipalities:

1. City

of Barrie.

2. County

of Brant.

3. City

of Brantford.

4. County

of Dufferin.

5. Regional

Municipality of Durham.

6. City

of Guelph.

7. Haldimand

County.

8. Regional

Municipality of Halton.

9. City

of Hamilton.

10. City

of Kawartha Lakes.

11. Regional

Municipality of Niagara.

12. County

of Northumberland.

13. City

of Orillia.

14. Regional

Municipality of Peel.

15. City

of Peterborough.

16. County

of Peterborough.

17. County

of Simcoe.

18. City

of Toronto.

19. Regional

Municipality of Waterloo.

20. County

of Wellington.

21. Regional

Municipality of York; ("région élargie du Golden Horseshoe")

"specified

region" means,

(

a) the

Greater Golden Horseshoe Region, except for any area of land in that Region

that the Minister prescribes as excluded from the specified region; and

(

b) any

other areas of land that the Minister prescribes as included in the specified

region; ("région déterminée")

"taxable

trustee", in relation to a conveyance of designated land, means a trustee of a

trust with at least one trustee that is a foreign entity, or a trust with no

foreign entity trustees if, immediately after the conveyance is tendered for

registration, a beneficiary of the trust who is a foreign entity holds a

beneficial interest in the designated land to which the conveyance relates, but

does not include a trustee acting for the following types of trusts:

1. A

mutual fund trust within the meaning of subsection 132 (6) of the Income Tax Act (Canada).

2. A

real estate investment trust as defined in subsection 122.1 (1) of the Income Tax Act (Canada).

3. A

SIFT trust as defined in subsection 122.1 (1) of the Income

Tax Act (Canada); ("fiduciaire imposable")

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

Additional

tax on foreign entities and taxable trustees

(2.1) In

addition to any tax payable under subsection (1), and subject to

section 2.1,

every person who, on or after April 21, 2017, tenders for registration in

Ontario a conveyance by which any designated land that is located within the specified

region is conveyed to a foreign entity or a taxable trustee shall pay, when the

conveyance is tendered for registration or before it is tendered for

registration, a tax,

(

a) computed

at the rate of 15 per cent of the value of the consideration for the

conveyance; or

(

b) if

an alternate rate of tax is prescribed by the Minister for the purposes of this

subsection, computed by multiplying the prescribed alternate rate by the value

of the consideration for the conveyance.

The Act is amended by adding the following section:

Special

rules re subs. 2 (2.1)

2.1

(1) This

section applies with respect to tax payable under subsection 2 (2.1).

Same

(2) For

greater certainty, in this section, a reference to tax payable under subsection

2 (2.1) includes tax payable under subsection 3 (2) that is determined in accordance

with subsection 2 (2.1).

Exemption,

agreements prior to April 21, 2017

(3) No

tax is payable under subsection 2 (2.1) if,

(

a) the

land is conveyed pursuant to an agreement of purchase and sale entered into on

or before April 20, 2017; and

(

b) any

assignment of the agreement of purchase and sale to any other person was

entered into on or before April 20, 2017.

Exemption,

prescribed classes or requirements

(4) No

tax is payable under subsection 2 (2.1) if the land is conveyed,

(

a) to

a foreign national who meets such residency, citizenship or immigration status

requirements as may be prescribed by the Minister;

(

b) to

a foreign national whose spouse meets such residency, citizenship or

immigration status requirements as may be prescribed by the Minister;

(

c) to

a foreign entity that is in a class of foreign entities prescribed by the

Minister, or that meets such requirements as may be prescribed by the Minister;

(

d) in

accordance with such requirements as may be prescribed by the Minister.

Rebate

(5) The

Minister may rebate the tax paid by a person under subsection 2 (2.1) on a

conveyance of land if the Minister is satisfied that the land was conveyed to a

foreign entity or taxable trustee that,

(

a) meets

such residency or citizenship requirements as may be prescribed by the

Minister;

(

b) meets

such educational enrolment or employment requirements as may be prescribed by

the Minister; or

(

c) meets

such other requirements as may be prescribed by the Minister.

Calculation

of additional tax where non-designated land

(6) If,

in a conveyance of designated land in respect of which tax is payable under

subsection 2 (2.1), a part of the land being conveyed is used for a purpose

other than residential purposes, the Minister may, to the extent that the

Minister considers it practicable, determine what amount of the value of the

consideration for the conveyance is reasonably attributable to the land used in

connection with a single family residence, and the person tendering the

conveyance for registration is, despite subsection 2 (2.1), liable to the

additional tax imposed under that subsection only upon that amount.

(1) Subsection 3 (4) of the Act is amended by adding "Subject to

subsection (4.1)" at the beginning.

(2) Section

3 of the Act is amended by adding the following subsection:

Exception,

joint and several liability for tax under subs. 2 (2.1)

(4.1) If

more than one person acquires a beneficial interest in land, or more than one

person's beneficial interest in land is increased as a result of the

disposition, each of them is jointly and severally liable to pay the amount of

tax imposed under subsection (2) that was determined at the rate under

subsection 2 (2.1).

Subsection 5.0.1 (1) of the Act is repealed and the following substituted:

Additional

information

(1) Every

transferee, in a conveyance or disposition in respect of which a statement,

affidavit or return is required under

section 5, shall provide the Minister

with such additional information as may be prescribed about the transferee and

the conveyance or disposition, and shall provide the information in the form

and manner approved by the Minister.

The Act is amended by adding the following section:

Offence,

false or misleading statements

5.0.3 Every

person who makes or assists in making a statement in a statement, affidavit or

return required under

section 5 for the purpose of determining tax liability

under subsection 2 (2.1) that, at the time and in light of the circumstances

under which it was made, is false or misleading in respect of any fact or that

omits to state any material fact, the omission of which makes the statement

false or misleading, is guilty of an offence and on conviction is liable to a fine

of not more than $10,000.

Subsection 22 (1.1) of the Act is repealed and the following substituted:

Regulations

(1.1) The

Minister may make regulations,

(

a) prescribing

land that is included in the definition of "designated land";

(

b) prescribing

areas of land in the Greater Golden Horseshoe Region that are excluded from the

definition of "specified region";

(

c) prescribing

areas of land that are included in the definition of "specified region";

(

d) prescribing

an alternate rate of tax for the purposes of subsection 2 (2.1);

(

e) prescribing

classes of foreign entities and prescribing requirements to be met for the

purposes of the exemption in subsection 2.1 (4);

(

f) prescribing

citizenship, residency, educational enrolment, employment or other requirements

to be met for the purposes of the rebate in subsection 2.1 (5);

(

g) providing

for t

Document details

Collection	Ontario — Bills
Citation	Bill 134, 41-2
Type	bill
Volume / chapter	p41 s2 bill 134 html
Language	en
Format	html
Source	PROVINCIAL
Identifier	93d68cb22c491ed391c1453e41b6363597002e56

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