43.4 (1) A corporation that complies with the requirements of this section may deduct from its tax otherwise payable under this Part for the taxation year, after making all deductions claimed under sections 39, 40, 41, 43 and 43.3 for the taxation year, an amount not exceeding the amount of its co-operative education tax credit for the taxation year.  1996, c. 24, s. 27; 1996, c. 29, s. 49 (1); 2004, c. 16, s. 2 (2). 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 co-operative education tax credit for the taxation year exceeds the maximum amount, if any, deductible by the corporation for the year under subsection (1).  1996, c. 24, s. 27; 2004, c. 16, s. 2 (2). Amount of tax credit (3) The amount of a corporation’s co-operative education tax credit for a taxation year is the sum of, (a) all amounts each of which is in respect of a qualifying work placement that ends in the taxation year, equal to the lesser of the corporation’s eligible amount for the taxation year in respect of the qualifying work placement determined under subsection (3.1) and $1,000; and (b) the total of all amounts, each of which is an amount determined by multiplying the eligible percentage by the amount of a repayment, if any, made by the corporation during the taxation year, of government assistance in respect of a qualifying work placement to the extent the repayment does not exceed the amount of the assistance in respect of the qualifying work placement that, (i) has not been repaid in a prior taxation year, and (ii) can reasonably be considered to have reduced the amount of a co-operative education tax credit that would otherwise have been allowed to the corporation under this Act in respect of the qualifying work placement.  1997, c. 43, Sched. A, s. 18 (1); 2004, c. 16, s. 2 (2). Eligible amount (3.1) A corporation’s eligible amount for a taxation year in respect of a qualifying work placement is the amount determined under the following rules: 1. If the total of all salaries or wages paid by the corporation in the previous taxation year is equal to or greater than $600,000, the amount is 10 per cent of the total of all eligible expenditures made by the corporation in respect of the qualifying work placement. 2. If the total of all salaries or wages paid by the corporation in the previous taxation year is not greater than $400,000, the amount is 15 per cent of the total of all eligible expenditures made by the corporation in respect of the qualifying work placement. 3. 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, the amount is the amount determined in accordance with the following formula: A = (10% × B) + [(5% × B) × (1 – C/$200,000)] where, “A” is the corporation’s eligible amount for the taxation year in respect of the qualifying work placement, “B” is the amount of all eligible expenditures made by the corporation in respect of the qualifying work placement, and “C” is the amount by which the total of all salaries or wages paid by the corporation in the previous taxation year exceeds $400,000. 1997, c. 43, Sched. A, s. 18 (1); 2004, c. 16, s. 2 (2). Certification of qualifying work placement (4) Every eligible educational institution in Ontario that has a qualified educational program that has qualifying work placements shall certify in a manner or form approved by the Minister to every corporation providing a qualifying work placement that the placement is a qualifying work placement for the purposes of this section, and the certification shall contain the name of the student in the placement and any additional information required by the Minister.  1997, c. 43, Sched. A, s. 18 (2); 2004, c. 16, s. 2 (2). Part of records and books of account (5) Unless otherwise directed by the Minister, the certification provided by an eligible educational institution under subsection (4) in respect of a qualifying work placement shall form part of the records and books of account required to be kept under section 94 by the corporation providing the qualifying work placement.  1996, c. 29, s. 49 (3); 1997, c. 43, Sched. A, s. 18 (3); 2004, c. 16, s. 2 (2). Minister’s direction and order (5.1) If incorrect certifications have been given under subsection (4) or an eligible educational institution has certified a work placement to be a qualifying work placement when it was not, the Minister may direct the educational institution to cease certifying work placements and may order that all or certain of the work placements of the institution be deemed not to be qualifying work placements for the purposes of this section until the Minister revokes the direction and order.  1996, c. 29, s. 49 (3); 1997, c. 43, Sched. A, s. 18 (4); 2004, c. 16, s. 2 (2). Resumption of certification (5.2) If the Minister is satisfied that the educational institution will comply with the Minister’s directions with respect to the accuracy, form and content of certifications to be given under subsection (4), the Minister, subject to any conditions the Minister considers reasonable, may revoke the direction and order given under subsection (5.1), and all work placements that would have otherwise been qualifying work placements while the Minister’s direction and order were in effect shall, to the extent approved by the Minister, be considered to be qualifying work placements for the purposes of this section and may be so certified by the educational institution.  1996, c. 29, s. 49 (3); 1997, c. 43, Sched. A, s. 18 (5); 2004, c. 16, s. 2 (2). Corporate partner (6) If a corporation is a member of a partnership and the partnership would qualify in a particular taxation year of the corporation for a co-operative education tax credit if the partnership were a corporation whose fiscal period was its taxation year, the portion of that co-operative education 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 co-operative education tax credit for the corporation’s taxation year.  1996, c. 24, s. 27; 2004, c. 16, s. 2 (2). Limited partner (7) Despite subsection (6), a limited partner’s share of a partnership’s tax credit referred to in subsection (6) shall be deemed to be nil.  1996, c. 24, s. 27; 2004, c. 16, s. 2 (2). Deemed tax payment (8) 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, if any, by which, (a) the corporation’s co-operative education tax credit for the taxation year, exceeds, (b) 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.  1996, c. 24, s. 27; 2004, c. 16, s. 2 (2). Time of deemed payment (9) A corporation shall be deemed to make the payment referred to in subsection (8) 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.  1996, c. 24, s. 27; 2004, c. 16, s. 2 (2). Definitions (10) In this section, “eligible educational institution” means an educational institution that satisfies the conditions prescribed by the Minister; (“établissement d’enseignement autorisé”) “eligible expenditure” means an amount determined in the manner prescribed by the Minister in respect of an expenditure that satisfies the conditions prescribed by the Minister; (“dépense autorisée”) “eligible percentage” means, in respect of a repayment of government assistance, the percentage used in determining the amount of the tax credit, if the receipt of the government assistance reduced the amount of a tax credit available under this section; (“pourcentage autorisé”) “qualifying work placement” has the meaning prescribed by the Minister. (“stage admissible”)  1996, c. 24, s. 27; 1997, c. 43, Sched. A, s. 18 (6, 7); 2004, c. 16, s. 2 (2); 2005, c. 31, Sched. 5, s. 6 (1-3). 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 meaning of “qualified educational program” for the purposes of subsection (4); (c) prescribing conditions for the purposes of the definition of “eligible educational institution” in subsection (10); (d) prescribing the manner for determining an amount and prescribing conditions for the purposes of the definition of “eligible expenditure” in subsection (10); (e) prescribing the meaning of a “qualifying work placement” for the purposes of this section; (f) prescribing methods of claiming and obtaining the benefit of a co-operative education tax credit, other than as otherwise set out in this section, and the procedures to be followed.  2004, c. 31, Sched. 9, s. 18; 2005, c. 31, Sched. 5, s. 6 (4). 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.  2004, c. 31, Sched. 9, s. 18. Section Amendments with date in force (d/m/y) 1996, c. 24, s. 27 - 08/05/1996; 1996, c. 29, s. 49 (1-3) - 08/05/1996; 1997, c. 43, Sched. A, s. 18 (1-11) - 01/01/1998 2004, c. 16, s. 2 (2)
- 01/01/2004; 2004, c. 31, Sched. 9, s. 18 - 16/12/2004 2005, c. 31, Sched. 5, s. 6 (1-4) - 15/12/2005