17 (1) On December 31 of each year, a labour sponsored investment fund corporation shall hold eligible investments that have an aggregate cost of not less than the amount determined using the formula, A – B – C + D – E – F in which, “A” is 70 per cent of the aggregate amount of equity capital received by the corporation on the issue of Class A shares that are outstanding at the end of the applicable calendar year and that were issued before the sixty-first day of that year, but excluding Class A shares that have been outstanding, (a) for at least five years, in the case of shares issued before May 7, 1996, and (b) for at least eight years, in the case of shares issued after May 6, 1996; “B” is 20 per cent of the aggregate amount of equity capital received by the corporation on the issue of Class A shares that were issued during the period beginning on the sixty-first day of the year preceding the applicable calendar year and ending on the sixtieth day of the applicable year and that are outstanding at the end of that year; “C” is the aggregate amount of losses of the corporation that are realized on its eligible investments before the end of the applicable calendar year; “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”; “E” is the total of all amounts that are permitted by subsections 24.1 (3) and (4) to be applied against the investment requirement imposed by this subsection; and “F” is the amount determined under subsection (2). 1999, c. 9, s. 54 (1); 2004, c. 16, s. 1 (2); 2004, c. 31, Sched. 7, s. 6. Amounts paid under a guarantee (1.1) For the purposes of the definition of “C” in subsection (1), the amount of losses of a labour sponsored investment fund corporation that are realized on eligible investments includes any amount paid by the labour sponsored investment fund corporation under the terms of a guarantee it previously gave if an amount in respect of that guarantee was deemed to have been an eligible investment under subsection 18 (8) at the time the guarantee was given.  2006, c. 9, Sched. C, s. 3 (1). Required investment levels, 2005 to 2012 (1.2) Despite subsection (1), at the end of the day on December 31 of each year after 2004 and before 2013, a labour sponsored investment fund corporation shall hold eligible investments that have a total cost of not less than the amount that would be determined under subsection (1) if, in the formula in that subsection, “A” were 60 per cent of the aggregate amount of equity capital received by the corporation on the issue of Class A shares that are outstanding at the end of the applicable calendar year and that were issued before the 61st day of that year, but excluding Class A shares that have been outstanding for at least 94 months, and “D” were 60 per cent of the lesser of, (a) the aggregate amount of gains of the corporation realized on its eligible investments before the end of that year, and (b) the amount of “C” for that year.  2006, c. 9, Sched. C, s. 3 (2); 2008, c. 7, Sched. D, s. 2 (1). Required investment levels, 2013 and later years (1.3) Despite subsections (1) and (1.2), at the end of the day on December 31 of each year after 2012, a labour sponsored investment fund corporation shall hold eligible investments that have a total cost of not less than the amount that would be determined under subsection (1) if, in the formula in that subsection, “A” were 60 per cent of the aggregate amount of equity capital received by the corporation on the issue of Class A shares that are outstanding at the end of the applicable calendar year and that were issued before the 61st day of 2012, but excluding Class A shares that have been outstanding for at least 94 months, “B” were nil, and “D” were 60 per cent of the lesser of, (a) the aggregate amount of gains of the corporation realized on its eligible investments before the end of that year, and (b) the amount of “C” for that year.  2006, c. 9, Sched. C, s. 3 (2); 2008, c. 7, Sched. D, s. 2 (2). Same (2) The amount of the variable “F” in subsection (1) is calculated using the formula, G + (H × I/J) in which, “G” is the aggregate amount of tax paid by the corporation under subsection 28 (3) that has not been refunded before the end of the applicable calendar year; “H” is the aggregate amount of tax and penalties that the corporation has paid under Part X.3 of the Income Tax Act (Canada) that have not been refunded before the end of the applicable calendar year; “I” is the aggregate amount of equity capital received by the corporation on the issue of Class A shares that were issued to shareholders who were ordinarily resident in Ontario when the shares were issued and that were outstanding when the taxes or penalties were paid under Part X.3 of the Income Tax Act (Canada); and “J” is the aggregate amount of equity capital received by the corporation on the issue of Class A shares that were outstanding when the taxes or penalties were paid under Part X.3 of the Income Tax Act (Canada). 1999, c. 9, s. 54 (3); 2004, c. 16, s. 1 (2). (2.1) Repealed:  2006, c. 9, Sched. C, s. 3 (3). Disposition of investment (3) For the purposes of this section, the labour sponsored investment fund corporation shall be deemed to continue to hold the investment, (a) for 24 months after it disposed of the investment or, if a longer period of time is prescribed by the regulations, that period of time, if the disposition occurred on or after January 1, 2005; or (b) for nine months after it disposed of the investment, if the disposition occurred before January 1, 2005.  2006, c. 9, Sched. C, s. 3 (4); 2007, c. 7, Sched. 5, s. 2. Application (4) This section applies to a corporation registered under Part X.3 of the Income Tax Act (Canada) only in respect of, (a) equity capital received on the issue of Class A shares to shareholders of the corporation who were ordinarily resident in Ontario at the time the shares were issued; and (b) amounts paid as a return of capital of Class A shares issued to shareholders of the corporation who were ordinarily resident in Ontario at the time the shares were issued.  1996, c. 24, s. 5 (2); 1996, c. 29, s. 10 (2); 2004, c. 16, s. 1 (2). Section Amendments with date in force (d/m/y) 1996, c. 24, s. 5 (2) - 7/05/1996; 1996, c. 29, s. 10 (2) - 7/05/1996; 1999, c. 9, s. 54 - 14/12/1999 2004, c. 16, s. 1 (2) - 1/01/2004; 2004, c. 31, Sched. 7, s. 6 - 16/12/2004 2005, c. 28, Sched. C, s. 1 - 12/12/2005 2006, c. 9, Sched. C, s. 3 (1) - 24/03/2006; 2006, c. 9, Sched. C, s. 3 (2-4) - 1/01/2005 2007, c. 7, Sched. 5, s. 2 - 17/05/2007 2008, c. 7, Sched. D, s. 2 - 14/05/2008