74 (1) Every insurance corporation shall pay a tax of, (a) 2 per cent calculated on the gross premiums payable under contracts of accident and sickness insurance, life insurance and, in the case of an association registered under the Prepaid Hospital and Medical Services Act, under contracts with its subscribers or members; and (b) 3 per cent calculated on the gross premiums payable, under any other contract of insurance, to the corporation or its agent or agents during the taxation year in respect of business transacted in Ontario (other than premiums in respect of reinsurance ceded to the corporation by other insurance corporations and considerations for annuities), after deducting from such premiums the amount of, (c) the cash value of dividends credited to policyholders; and (d) the premiums returned.  R.S.O. 1990, c. C.40, s. 74 (1); 1994, c. 14, s. 31 (1); 2004, c. 16, s. 2 (2); 2004, c. 31, Sched. 9, s. 36 (1). Deduction (2) In determining the amount of tax payable under subsection (1) in respect of a taxation year ending after the 21st day of June, 1990, there may be deducted 3 per cent of the amount, if any, determined in accordance with the following formula: (A – B) × C/D where: “A” is the total amount of gross premiums referred to in clause (1) (b) for the taxation year in respect of contracts of automobile insurance; “B” is the total amount of gross premiums included in “A” that are payable in respect of, (i) an ambulance or funeral vehicle, (ii) a bus, limousine, taxi or other vehicle that carries passengers for reward or as part of a transportation service, (iii) a fire department or police vehicle, (iv) a driver training vehicle, (v) a vehicle rented for a period of less than thirty days, (vi) a vehicle used primarily to transport things in connection with the insured’s business or occupation, or (vii) a vehicle that weighs more than 4,500 kilograms; “C” is the number of days in the taxation year that are after the 21st day of June, 1990 and before the 30th day of April, 1991; and “D” is the number of days in the taxation year. 1992, c. 3, s. 15; 2004, c. 16, s. 2 (2); 2004, c. 31, Sched. 9, s. 36 (2). (3) Repealed:  2001, c. 23, s. 48. Interpretation (4) In addition to the tax payable under subsection (1), every corporation transacting business as an insurer for property insurance shall pay a tax of one-half of 1 per cent calculated on the gross premiums that become payable to the corporation or its agent or agents during the taxation year in respect of such business transacted in Ontario other than premiums in respect of reinsurance ceded to the corporation by other insurers after deducting from such premiums, (a) cash value of dividends credited to policyholders; and (b) premiums returned.  R.S.O. 1990, c. C.40, s. 74 (4); 2004, c. 16, s. 2 (2); 2004, c. 31, Sched. 9, s. 36 (3). Definitions (5) For the purposes of this Part, “insurance corporation” and “corporation”, as the case may be, include, (a) underwriters and syndicates of underwriters operating on the plan known as Lloyds, (b) a fraternal society, and (c) associations registered under the Prepaid Hospital and Medical Services Act.  1994, c. 14, s. 31 (2); 2004, c. 16, s. 2 (2); 2004, c. 31, Sched. 9, s. 36 (4). Same (5.1) For the purposes of this section, gross premiums payable to an association registered under the Prepaid Hospital and Medical Services Act means all amounts payable to the association after May 19, 1993 by persons who are subscribers or members of the association under contracts with the association that are, (a) entered into after May 19, 1993; (b) substantially modified after May 19, 1993; or (c) renewed after May 19, 1993.  1994, c. 14, s. 31 (2); 2004, c. 16, s. 2 (2). Premiums in respect of business transacted in Ontario (6) In determining the amount of taxes payable under subsections (1) and (4), (a) every life insurance premium that becomes payable at the time the person insured is a resident of Ontario; and (b) every other premium that by the terms of the policy or renewal thereof becomes payable in respect of insurance of a person resident or property situate in Ontario at the time such premium becomes payable whether or not, (i) such premium is earned wholly or partly in Ontario, (ii) the business in respect of the policy is transacted wholly or partly in Ontario, or (iii) the payment of such premium is made wholly or partly in Ontario, shall be deemed to be a premium payable in respect of business transacted in Ontario.  R.S.O. 1990, c. C.40, s. 74 (6); 2004, c. 16, s. 2 (2). Exemptions (7) The tax imposed by subsection (1) is not payable, (a) in respect of premiums payable under a contract of marine insurance; (b) in respect of premiums payable under contracts of insurance issued on the premium note plan by mutual insurance corporations insuring agricultural and other non-hazardous risks, the sole business of which is carried on in Ontario; (c) in respect of premiums payable to mutual insurance corporations insuring agricultural and other non-hazardous risks, which are parties to the agreement, made pursuant to section 169 of the Insurance Act, establishing the Fire Mutuals Guarantee Fund; (d) by a fraternal society with respect to contracts entered into before January 1, 1974; (e) by a mutual benefit society; or (f) by pension fund and employees’ mutual benefit societies incorporated under or subject to the Corporations Act.  R.S.O. 1990, c. C.40, s. 74 (7); 2004, c. 16, s. 2 (2); 2004, c. 31, Sched. 9, s. 36 (5). (8) Repealed:  2004, c. 31, Sched. 9, s. 36 (6). Unfair discrimination (9) Where it is established to the satisfaction of the Lieutenant Governor in Council that any jurisdiction discriminates unfairly by imposing taxes, fees and other monetary obligations on any insurance corporation or any particular class of insurance corporations organized under the laws of Canada or of Ontario and having their principal offices in Ontario that in the aggregate are in excess of comparable taxes, fees and monetary obligations imposed on any similar corporation or class of corporations organized under the laws of such jurisdiction, the Lieutenant Governor in Council may direct that any corporation or any class of corporations organized under the laws of such jurisdiction and that transacts business in Ontario shall pay, in addition to the tax otherwise imposed by this section, a tax not exceeding the equivalent of such excess, and such additional tax is recoverable in the same manner as any other tax imposed by this Act.  R.S.O. 1990, c. C.40, s. 74 (9); 2004, c. 16, s. 2 (2). Section Amendments with date in force (d/m/y) 1992, c. 3, s. 15 - 25/06/1992; 1994, c. 14, s. 31 (1-3) - 20/05/1993 2001, c. 23, s. 48
- 05/12/2001 2004, c. 16, s. 2 (2)
- 01/01/2004; 2004, c. 31, Sched. 9, s. 36 (1-6) - 30/04/2007