69 (1) Repealed:  2004, c. 31, Sched. 9, s. 34 (1). Tax reduction (2) Despite section 66 and except as provided in subsection 68 (1) and section 71, the tax payable under this Part for a taxation year by a corporation other than a financial institution is the total of the following amounts: 1. The amount that would have been the corporation’s tax payable under this Part for the taxation year if this Part were read as it did on May 4, 1999 multiplied by the ratio of the number of days, if any, in the taxation year that are before May 5, 1999 to the number of days in the taxation year. 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. For the purposes of paragraph 2, the variable “A” is the corporation’s Ontario allocation factor for the taxation year, as defined in subsection 12 (1). 4. For the purposes of paragraph 2, the variable “B” for a taxation year ending before January 1, 2005 is the amount calculated using the formula, [(0.003 × D) × E/F] + [(0.003 × DD) × EE/F] in which, “D” is the corporation’s taxable paid-up capital for the taxation year, “DD” 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, “E” is the number of days in the taxation year that are after May 4, 1999 and before October 1, 2001, “EE” is the number of days in the taxation year that are after September 30, 2001, and “F” is the number of days in the taxation year. 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. For the purposes of paragraph 2, the variable “C” for a taxation year that ends before October 1, 2001 is the amount calculated using the formula, G × D/H in which, “D” is the corporation’s taxable paid-up capital for the taxation year, “G” is the sum of the amounts described in paragraphs 6 to 8, and “H” is the sum of the corporation’s taxable paid-up capital for the taxation year and the taxable paid-up capital of each corporation, if any, with which it is associated, for the last taxation year of the associated corporation ending during the corporation’s taxation year. 5.1 For the purposes of paragraph 2, the variable “C” for a taxation year that ends after September 30, 2001 is the amount calculated using the formula, GG × DD/HH in which, “DD” 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, “GG” is the sum of the amounts described in paragraphs 7 to 9, and “HH” is the sum 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, and ii. the taxable paid-up capital or taxable paid-up capital employed in Canada, as the case may be, of each corporation, if any, that has a permanent establishment in Canada and with which the corporation is associated, for the last taxation year of the associated corporation ending during the corporation’s taxation year. 6. For the purposes of the variable “G” in paragraph 5, the first amount is calculated using the formula, (0.015 × J) × K/F in which, “F” is the number of days in the taxation year, “J” is the amount, if any, by which $2.4 million exceeds the amount represented by the variable “Z”, where “Z” is the aggregate of, i. the corporation’s taxable paid-up capital for the taxation year, ii. if the corporation is associated with one or more corporations, the taxable paid up capital of each such associated corporation for the last taxation year of the associated corporation ending during the corporation’s taxation year, iii. if the corporation is a member of a partnership or connected partnership (as determined under subsection 69 (5)), the aggregate of the shares of the taxable paid-up capital of the partnership or connected partnership that are allocated under subsection 61 (5)  to each person related to the corporation, for the last fiscal period of the partnership or connected partnership ending during the corporation’s taxation year, if those amounts are not already included within the amounts described in subparagraphs i and ii, and “K” is the number of days in the taxation year that are after May 4, 1999 and before January 1, 2000. 7. For the purposes of the variable “G” in paragraph 5 and the variable “GG” in paragraph 5.1, the applicable amount under this paragraph is calculated using the formula, (0.0075 × L) × M/F in which, “F” is the number of days in the taxation year, “L” is the amount, if any, by which $2.8 million exceeds “Z” as defined in paragraph 6, and “M” is the number of days in the taxation year that are after December 31, 1999 and before January 1, 2001. 8. For the purposes of the variable “G” in paragraph 5 and the variable “GG” in paragraph 5.1, the applicable amount under this paragraph is calculated using the formula, (0.005 × N) × P/F in which, “F” is the number of days in the taxation year, “N” is the amount, if any, by which $3.2 million exceeds “Z” as defined in paragraph 6, and “P” is the number of days in the taxation year that are after December 31, 2000 and before October 1, 2001. 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. 10.  Repealed:  2001, c. 23, s. 45 (5). 1999, c. 9, s. 91 (3); 2001, c. 23, s. 45 (2-6); 2002, c. 22, s. 52 (1-8); 2004, c. 16, s. 2 (2); 2004, c. 31, Sched. 9, s. 34 (2-5). Election for group of associated corporations (2.1) A corporation and each corporation with which it is associated in a taxation year and that has a permanent establishment in Canada in the taxation year (the “associated group”) may elect to calculate the amount of the variable “C” in paragraph 2 of subsection (2) for taxation years ending after December 31, 2002 using the formula, S/A in which, “A” is the corporation’s Ontario allocation factor for the taxation year, as defined in subsection 12 (1), and “S” is the corporation’s portion, for the taxation year, of the associated group’s net deduction for the calendar year in which the taxation year ends, as determined in accordance with subsection (2.6) or (2.7), as the case may be. 2002, c. 22, s. 52 (9); 2004, c. 16, s. 2 (2). Same (2.2) The associated group may make the election under subsection (2.1) if all of the corporations in the associated group enter into a written allocation agreement and if the following conditions are satisfied: 1. The allocation agreement must allocate among the corporations in the associated group the amount of the associated group’s net deduction for the calendar year in which the corporations’ taxation years end. 2. The amount of the associated group’s net deduction for that calendar year must be determined in accordance with subsection (2.3). 3. The total of all amounts allocated to each corporation under the agreement must not exceed the associated group’s net deduction for that calendar year. 4. For the taxation year that ends in the calendar year to which the allocation agreement applies, each corporation in the associated group is required to determine its tax payable under this Part in accordance with the allocation agreement. 5. A copy of the allocation agreement must be delivered to the Minister with the corporation’s tax return for the taxation year in which an amount is claimed under subsection (2.1).  2002, c. 22, s. 52 (9); 2004, c. 16, s. 2 (2). Associated group’s net deduction (2.3) The associated group’s net deduction for a calendar year is the sum of the net deductions of each corporation in the associated group for the last taxation year of each corporation ending in the calendar year, as determined under subsection (2.4).  2002, c. 22, s. 52 (9); 2004, c. 16, s. 2 (2). 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). 2004, c. 31, Sched. 9, s. 34 (6). Foreign corporation, taxation years ending on or before May 11, 2005 (2.5) For the purposes of the definitions of “T” and “X” in subsection (2.4), if a corporation is incorporated under the laws of a jurisdiction outside Canada and its taxation year ends on or before May 11, 2005, its total assets in Canada shall be deemed to constitute its total assets.  2005, c. 28, Sched. D, s. 13. Non-resident corporation, taxation years ending after May 11, 2005 (2.5.1) For the purposes of the definitions of “T” and “X” in subsection (2.4), if a corporation is non-resident and its taxation year ends after May 11, 2005, its total assets in Canada shall be deemed to constitute its total assets.  2005, c. 28, Sched. D, s. 13. Corporation’s portion of net deduction (2.6) If the associated group makes the election under subsection (2.1) and if the conditions described in subsection (2.2) are satisfied, the corporation’s portion, for the taxation year, of the associated group’s net deduction for the calendar year in which the taxation years ends is the amount determined in accordance with the written allocation agreement.  2002, c. 22, s. 52 (9); 2004, c. 16, s. 2 (2). Same, conditions not satisfied (2.7) If the associated group purports to make the election under subsection (2.1) but the conditions described in subsection (2.2) are not satisfied, the corporation’s portion, for the taxation year, of the associated group’s net deduction for the calendar year in which the taxation year ends is the amount, if any, that the Minister considers to be reasonable in the circumstances.  2002, c. 22, s. 52 (9); 2004, c. 16, s. 2 (2). Interpretation (3) For the purposes of this section, the taxable paid-up capital or the taxable paid-up capital employed in Canada of a corporation that has no permanent establishment in Ontario shall be determined in accordance with Division B or C of this Part as if the corporation had a permanent establishment in Ontario, whether or not the corporation is subject to tax under this Act.  2002, c. 22, s. 52 (10); 2004, c. 16, s. 2 (2). Financial institutions and exempt corporations (4) For the purposes of this section, the taxable paid-up capital, the taxable paid-up capital employed in Canada and the total assets of a corporation do not include the taxable paid-up capital, the taxable paid-up capital employed in Canada or the total assets of a corporation that is a financial institution or of a corporation that is exempt from tax under this Part.  2002, c. 22, s. 52 (11); 2004, c. 16, s. 2 (2). Connected partnerships (5) For the purposes of this section, a partnership of which a corporation was a member in a taxation year (hereinafter referred to as the “first partnership”) is connected with another partnership (hereinafter referred to as the “second partnership”) if, (a) more than 50 per cent of the total income or loss, as the case may be, of the first partnership for its fiscal periods ending in or coinciding with the taxation year is included in the determination of the income of a particular person or a particular group of persons; and (b) more than 50 per cent of the total income or loss, as the case may be, of the second partnership for its fiscal periods ending in or coinciding with the taxation year is included in the determination of the income of, (i) the particular person, (ii) the particular group of persons, (iii) any corporation associated with the particular person or with any member of the particular group of persons, (iv) any group of corporations each member of which is associated with the particular person or with any member of the particular group of persons, or (v) any group of persons each member of which is a person or a member of a group of persons described in any of subclauses (i) to (iv).  R.S.O. 1990, c. C.40, s. 69 (5); 1999, c. 9, s. 91 (6); 2004, c. 16, s. 2 (2). Section Amendments with date in force (d/m/y) 1994, c. 14, s. 30 (1, 2) - 21/04/1988; 1996, c. 29, s. 58 - 31/12/1991; 1997, c. 43, Sched. A, s. 39 - 07/05/1997; 1999, c. 9, s. 91 (1-6) - 05/05/1999 2001, c. 8, s. 28 (1-3)
- no effect - see 2001, c. 23, s. 45 (3, 6, 8) - 01/10/2001; 2001, c. 23, s. 45 (1)
- 05/12/2001; 2001, c. 23, s. 45 (2-8)
- 01/10/2001 2002, c. 22, s. 52 (1, 2, 4-8, 10, 11) - 01/10/2001; 2002, c. 22, s. 52 (3)
- 01/01/2003; 2002, c. 22, s. 52 (9)
- 01/01/2003 2004, c. 16, s. 2 (2)
- 01/01/2004; 2004, c. 31, Sched. 9, s. 34 (1-6) - 16/12/2004 2005, c. 28, Sched. D, s. 13 - 11/05/2005