Balanced Budgets for Brighter Futures Act, 2000 Eves, Hon. Ernie Minister of Finance — Bill 152 (37th Parliament, 1st Session)

Bill 152, 37-1

Ontario — Bills

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Bill 152, Balanced Budgets for Brighter Futures Act, 2000

Eves, Hon. Ernie Minister of Finance

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[37] Bill 152 Royal Assent (PDF)

Bill 152

Bill 1522000

An Act to implement the

2000 Budget to establish a

made-in-Ontario tax system

and to amend various Acts

contents

Part I

Part II

Part III

Part IV

Part V

Part VI

Part VII

Part VIII

Part IX

Part X

Part XI

Part XII

Part XIII

Part XIV

Part XV

Schedule

Community Small Business Investment Funds Act

Corporations Tax Act

Electricity Act, 1998

Employer Health Tax Act

Income Tax Act

Land Transfer Tax Act

Mining Tax Act

Ministry of Treasury and Economics Act

Northern Ontario Heritage Fund Act

Northern Services Boards Act

Ontario Guaranteed Annual Income Act

Ontario Home Ownership Savings Plan Act

Retail Sales Tax Act

Tobacco Tax Act

Schedule, Commencement and

Short Title

Professional Corporations

______________

Her Majesty, by and with the advice and consent of the Legislative

Assembly of the Province of Ontario, enacts as follows:

Part I

community small business

investment funds act

1. (1) Subsection 1 (1) of the Community Small Business

Investment Funds 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 and 1999,

chapter 9,

section 50, is further

amended by adding the following

definitions: "

qualifying trust" has the same meaning as in subsection 127.4 (1) of the

Income Tax Act (Canada); ("fiducie admissible") "

research oriented investment fund" means, with respect to a calendar year,

a labour sponsored investment fund corporation that meets the requirements

set out in subsection 16.1 (2). ("fonds d'investissement ax sur la

recherche")

(2) 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 and 1999,

chapter 9,

section 50, is

further amended by adding the following definition: "

common-law partner" has the meaning given to it in subsection 248 (1) of

the Income Tax Act (Canada). ("conjoint de fait")

(1) Sub-subclause 6 (1) (e) (i) (

C) of the Act, as amended by

the Statutes of Ontario, 1994,

chapter 17,

section 80, is further amended by

inserting "or common-law partner" after "spouse".

(2) Subclause 6 (1) (e) (iii) of the Act, as amended by the

Statutes of Ontario, 1994,

chapter 17,

section 80, is further amended by

inserting "or common-law partner" after "spouse" in the portion before

sub-subclause (A).

(3) Sub-subclause 6 (1) (e) (iii) (

A) of the Act, as amended by

the Statutes of Ontario, 1994,

chapter 17,

section 80, is further amended by

inserting "or common-law partner" after "spouse".

(4) Sub-subclause 6 (1) (e) (iii) (C.1) of the Act, as enacted by

the Statutes of Ontario, 1994,

chapter 17,

section 80, is amended by

inserting "or common-law partner" after "spouse".

(1) The definition of "eligible investor" in subsection 12

(1) of the Act, as re-enacted by the Statutes of Ontario, 1994,

chapter 17,

section 82, is repealed and the following substituted: "

eligible investor" means, in respect of a particular Class A share of a

corporation registered under this Part,

(a)an individual who subscribes for the share, but not an individual who

is a trust,

(b)an individual who is an annuitant (as defined in subsection 146 (1) of

the Income Tax Act (Canada)) of a qualifying trust that subscribes

for the share, or

(c)a spouse of an individual described in clause (b). ("investisseur

admissible")

(2) Clause (

c) of the definition of "eligible investor" in

subsection 12 (1) of the Act, as enacted by subsection (2), is repealed and

the following substituted:

(c)a spouse or common-law partner of an individual described in clause

(b).

(3) Subsection 12 (1) of the Act, as amended by the Statutes of

Ontario, 1994,

chapter 17,

section 82, 1997,

chapter 43,

Schedule C,

section

5 and 1999,

chapter 9,

section 52, is further amended by adding the following

definitions: "

eligible investment in a research business" means, with respect to a

particular labour sponsored investment fund corporation, an investment

described in subsection (3); ("investissement admissible dans une entreprise

de recherche") "

scientific research and experimental development expenses" means, with

respect to expenses incurred by an entity in a fiscal year, the total of all

expenses incurred by the entity in the year that are described in

subparagraph 37 (1) (a) (i), (i.1) or (ii) or 37 (1) (b) (

i) or (ii) of the

Income Tax Act (Canada). ("dpenses affrentes aux activits de

recherche scientifique et de dveloppement exprimental")

(4) Section 12 of the Act, as amended by the Statutes of Ontario,

1994,

chapter 17,

section 82, 1997,

chapter 43,

Schedule C,

section 5 and

1999,

chapter 9,

section 52, is further amended by adding the following

subsections:

Eligible investment in

a research business

(3) For the purposes of this Part, an eligible investment in a research

business by a labour sponsored investment corporation for a particular

calendar year is an investment by the corporation in an entity that is a

taxable Canadian corporation or a Canadian partnership and with respect to

which the circumstances described in one or more of the following paragraphs

exist:

1.At least 50 per cent, or such other percentage as may be prescribed, of

the total expenses incurred by the entity during the entity's most recent

fiscal year ending before the day on which the investment was made and for

which financial statements are available are scientific research and

experimental development expenses.

2.If the entity was established in the calendar year or in the previous

calendar year, or if it first began business in one of those calendar

years,

i.the entity undertakes to incur scientific research and experimental

development expenses in the fiscal year in which the investment is made, or

in the following fiscal year, in an amount equal to at least 50 per cent, or

such other percentage as may be prescribed, of its total expenses for the

year, and

ii.the labour sponsored investment fund corporation accepts the

undertaking.

3.The entity fulfilled an undertaking given in a previous year under

paragraph 2.

4.The entity was formed to exploit intellectual property developed by a

Canadian institution that is a university, college, research institute,

hospital or other prescribed research institution and,

i.at least 10 per cent of the voting equity capital of the entity or 10

per cent of the value of all partnership interests in the entity, as the case

may be, are held by a Canadian institution that is a university, college,

research institute, hospital or other prescribed research institution,

and

ii.the amount of the scientific research and experimental development

expenses incurred by the entity in the entity's fiscal year in which the

labour sponsored investment fund corporation makes its investment is equal to

at least 50 per cent or such other percentage as may be prescribed of the

amount invested by the corporation in the entity in the fiscal year.

Date of Class A share redemption

(4) For the purpose of sections 14 and 14.1, when determining the date on

which a Class A share of a labour sponsored investment fund corporation that

was issued in February or March is redeemed, a redemption that occurs in

February or on March 1 shall be deemed to occur on March 31.

Capital available for investment

(5) For the purposes of this Part, a labour sponsored investment fund

corporation's capital available for investment at a particular time is the

amount, if any, by which "A" exceeds "B" where, "

A"is the total cost of all investments and property held by the

corporation at that time, each of which was an eligible investment as defined

section 18 or in subsection 204.8 (1) of the Income Tax Act

(Canada) at the time the investment was made or is property maintained in a

reserve as defined in subsection 19 (2), and "

B"is 20 per cent of the net value of the corporation's total assets at

that time.

(1) Sub-subclause 14 (1) (e) (i) (

C) of the Act, as amended by

the Statutes of Ontario, 1994,

chapter 17,

section 84, is further amended by

inserting "or common-law partner" after "spouse".

(2) Subclause 14 (1) (e) (iii) of the Act, as amended by the

Statutes of Ontario, 1994,

chapter 17,

section 84, is further amended by

inserting "or common-law partner" after "spouse" in the portion before

sub-subclause (A).

(3) Sub-subclause 14 (1) (e) (iii) (

A) of the Act, as enacted by

the Statutes of Ontario, 1994,

chapter 17,

section 84, is amended by

inserting "or common-law partner" after "spouse".

(4) Sub-subclause 14 (1) (e) (iii) (B.2) of the Act, as enacted by

the Statutes of Ontario, 1994,

chapter 17,

section 84, is amended by

inserting "or common-law partner" after "spouse".

(1) Subclause 14.1 (1) (a) (iv) of the Act, as enacted by the

Statutes of Ontario, 1997,

chapter 43,

Schedule C,

section 7, is amended by

inserting "or common-law partner" after "spouse" in the portion before

sub-subclause (A).

(2) Clause 14.1 (1) (

c) of the Act, as enacted by the Statutes of

Ontario, 1997,

chapter 43,

Schedule C,

section 7, is amended by inserting "or

common-law partner" after "spouse" in the portion before subclause

(i).

(3) Sub-subclause 14.1 (1) (c) (ii) (

A) of the Act, as enacted by

the Statutes of Ontario, 1997,

chapter 43,

Schedule C,

section 7, is amended

by inserting "or common-law partner" after "spouse".

(4) Sub-subclause 14.1 (1) (c) (ii) (

E) of the Act, as enacted by

the Statutes of Ontario, 1997,

chapter 43,

Schedule C,

section 7, is amended

by inserting "or common-law partner" after "spouse".

(5) Section 14.1 of the Act, as enacted by the Statutes of

Ontario, 1997,

chapter 43,

Schedule C,

section 7, is amended by inserting the

following subsections:

Alternative version of amendment

(1.1) A labour sponsored investment fund corporation may amend its

articles to provide that if, in a year, the corporation issues Class A shares

as a research oriented investment fund and if tax credit certificates are

issued under this Act in respect of those shares, the corporation may redeem

such a share only if all of the following circumstances exist:

1.The holder of the share makes a written request to the corporation to

redeem the share.

2.The holder of the share meets such other conditions as may be

prescribed.

3.The redemption either occurs more than eight years after the date on

which the share was issued or it occurs earlier than that in circumstances

other than those described in subclause (1) (a) (ii), (iii) or (iv) and,

i.the holder of the share receives an amount on the redemption that does

not exceed the amount that would otherwise have been payable on the

redemption less 20 per cent, or such other percentage as may be prescribed,

of the lesser of,

A.the value of the consideration received by the corporation on the

issuance of the share, or

B.the amount that would otherwise have been payable on the redemption of

the share, and

ii.the corporation remits to the Minister an amount equal to the amount

required under subparagraph i to be deducted from the amount otherwise

payable on redemption of the share.

Same

(1.2) The provision described in subsection (1.1) is to be included in the

articles of incorporation instead of the provisions described in clause 14

(1) (

e) and in addition to the provisions described in subsection (1).

6. The Act is amended by adding the following

section:

Research oriented investment fund

16.1

(1) A labour sponsored investment fund corporation

that intends to issue shares as

Document details

Collection	Ontario — Bills
Citation	Bill 152, 37-1
Type	bill
Volume / chapter	p37 s1 bill 152 html
Language	en
Format	html
Source	PROVINCIAL
Identifier	c86d61769a3f7992d29ce692ad2e22cb31329a4f

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