34 (1) Except as hereinafter in this Division provided, in computing the taxable income of a corporation for a taxation year ending before January 1, 2009, Division C of Part I of the Income Tax Act (Canada) is applicable for the purposes of this Act in so far as the said Division applies to additions and deductions permitted to corporations.  R.S.O. 1990, c. C.40, s. 34 (1); 2004, c. 16, s. 2 (2); 2007, c. 11, Sched. B, s. 2 (5). Restriction on carry back of losses incurred after 2008 (1.0.1) The amount deducted under section 111 of the Income Tax Act (Canada), as it applies for the purposes of this Act, in computing the taxable income of a corporation for a taxation year ending before January 1, 2009 in respect of a non-capital loss, net capital loss, farm loss, restricted farm loss or limited partnership loss for a taxation year ending after December 31, 2008 shall not exceed the amount deducted under that section for the purposes of the Income Tax Act (Canada) by the corporation in respect of the loss for that taxation year ending before January 1, 2009.  2007, c. 11, Sched. B, s. 2 (6). Gifts to Her Majesty in right of Ontario (1.1) The amount of a deduction for a taxation year under subsection 110.1 (1) of the Income Tax Act
(Canada) in respect of gifts made to Her Majesty in right of Ontario, to a Crown agency within the meaning of the Crown Agency Act
or to a foundation established under the Crown Foundations Act, 1996 is the lesser of “A” and “B”, where, “A” is the amount by which the income of the corporation for the taxation year exceeds the total of all other amounts, if any, deducted by the corporation under this Act for the taxation year, (a) under paragraph 110.1 (1) (b) of the Income Tax Act (Canada), as it applies for the purposes of this Act in respect of gifts to Her Majesty in right of Canada or to a province other than Ontario, or (b) under paragraph 110.1 (1) (a) of the Income Tax Act (Canada) as it applies for the purposes of this Act in respect of other gifts, and “B” is the lesser of the amount of the corporation’s income for the taxation year and the total of, (a) the amount of gifts made before March 23, 2004 to Her Majesty in right of Ontario, a Crown agency within the meaning of the Crown Agency Act or a foundation established under the Crown Foundations Act, 1996 to the extent that, (i) the gifts were made in the taxation year or in the five preceding taxation years, and (ii) the amount of the gifts is not otherwise deducted in computing the corporation’s income or taxable income for the year and was not deducted for a previous taxation year, and (b) the total of all amounts each of which is the fair market value of a gift made after March 22, 2004 to Her Majesty in right of Ontario, a Crown agency within the meaning of the Crown Agency Act or a foundation established under the Crown Foundations Act, 1996 if, (i) the gift was made in the taxation year or in the five preceding taxation years, (ii) the gift is not a gift to which subsection 110.1 (1.2) of the Income Tax Act (Canada) would apply for the taxation year if that subsection applied to amounts deductible under this subsection, and (iii) the fair market value of the gift is not otherwise deducted in computing the corporation’s income or taxable income under the Act for the taxation year and was not deducted for a previous taxation year.  1998, c. 34, s. 36 (1); 2004, c. 16, s. 2 (2); 2005, c. 31, Sched. 5, s. 4. Receipts for gifts to charities, etc. (2) In the application of subsections 110.1 (2) and (3) of the Income Tax Act
(Canada) for the purposes of this Act, a “receipt” includes a photostatic reproduction of the receipt.  R.S.O. 1990, c. C.40, s. 34 (2); 2004, c. 16, s. 2 (2). Interpretation (3) In the application of the definition of “registered Canadian amateur athletic association” and “registered charity” in subsection 248 (1) of the Income Tax Act
(Canada) for the purposes of this Act, the references therein to “Minister” shall be read as references to the Minister of National Revenue.  R.S.O. 1990, c. C.40, s. 34 (3); 2004, c. 16, s. 2 (2). Losses: application of Income Tax Act (Canada), subs. 111 (3) (4) In the application, for the purposes of this Act, of subsection 111 (3) of the Income Tax Act
(Canada), paragraph (a) thereof shall be read as if subparagraph (ii) thereof were deleted.  R.S.O. 1990, c. C.40, s. 34 (4); 2004, c. 16, s. 2 (2). Losses: deemed deduction and claim (5) Despite subsection 111 (3) of the Income Tax Act (Canada), as made applicable by this section, where a corporation claims a deduction under subsection 42 (1) of this Act, or under clause 33 (1) (b) of the Corporations Tax Act, being chapter 97 of the Revised Statutes of Ontario, 1980, from tax otherwise payable in a taxation year, the corporation shall be deemed to have, (a) deducted, in the computation of its taxable income for that year, the amount of all losses deductible under subsection 111 (1) of the Income Tax Act (Canada), as made applicable by subsection (1), which were neither deducted nor deemed by this subsection to have been deducted in the computation of taxable income for any previous taxation year; and (b) claimed, in the computation of its taxable income for that year, the amount in respect of a net capital loss that is available to be claimed for that taxation year under subsection 111 (1) of the Income Tax Act (Canada), as made applicable by subsection (1), which was neither claimed nor deemed by this subsection to have been claimed in the computation of taxable income for any previous taxation year.  1994, c. 14, s. 11 (1); 2004, c. 16, s. 2 (2). Idem (6) Where, under subsection (5), (a) a corporation; (b) a predecessor corporation of the corporation, within the meaning of section 87 of the Income Tax Act
(Canada); or (c) a subsidiary of the corporation, prior to a winding-up of the subsidiary to which the rules in subsection 88 (1) of the Income Tax Act (Canada) apply, has been deemed to have deducted or claimed a loss in the computation of its taxable income for a taxation year, the amount of such loss shall be neither deducted nor claimed by the corporation in the computation of its taxable income for any other taxation year.  R.S.O. 1990, c. C.40, s. 34 (6); 1994, c. 14, s. 11 (2); 2004, c. 16, s. 2 (2). Same (7) In the application of section 110.5 or subparagraph 115 (1) (a) (vii) of the Income Tax Act (Canada) and in the application of the definition of “non-capital loss” in subsection 111 (8) of that Act for the purposes of this Act, the amount determined under section 110.5 or subparagraph 115 (1) (a) (vii) that is added for the purposes of that Act to the taxable income of the corporation for the taxation year and to the non-capital loss of the corporation for the taxation year under element B of the formula in the definition of “non-capital loss” in subsection 111 (8) shall be the amount added to the taxable income and included in the non-capital loss of the corporation for the taxation year for the purposes of this Act.  1996, c. 29, s. 45; 2001, c. 23, s. 29 (1); 2004, c. 16, s. 2 (2). Idem, Income Tax Act (Canada), subpar. 110 (1) (f) (i) (8) Subparagraph 110 (1) (f) (i) of the Income Tax Act (Canada) is not applicable for the purposes of this Act.  R.S.O. 1990, c. C.40, s. 34 (8); 2004, c. 16, s. 2 (2). Idem, Income Tax Act (Canada), subcl. 111 (1) (e) (ii) (C) (I) (9) For the purposes of this Act, the amount referred to in subclause 111 (1) (e) (ii) (C) (I) of the Income Tax Act (Canada) shall equal the corporation’s share of the foreign exploration and development expenses incurred by the partnership in that fiscal period that are deductible in computing income for the purposes of this Act.  R.S.O. 1990, c. C.40, s. 34 (9); 2004, c. 16, s. 2 (2). Application of par. 111 (4) (e) of Income Tax Act
(Canada) (10) The following rules apply in the application of paragraph 111 (4) (e) of the Income Tax Act
(Canada) for the purposes of this Act: 1. The reference to the Minister shall be read as a reference to the Minister of National Revenue. 2. The paragraph shall be read without reference to the words “under this Part”. 3. If the corporation designates an amount under that paragraph for the purposes of determining the amount of the proceeds of disposition of a capital property for the purposes of the Income Tax Act (Canada), the corporation shall be deemed to have designated under that paragraph for the purposes of this Act the amount designated in respect of the property for the purposes of the Income Tax Act
(Canada). 4. No amount may be designated by the corporation under that paragraph for the purposes of determining the amount of the proceeds of disposition of a capital property for the purposes of this Act unless the corporation designates an amount under that paragraph for the purposes of the Income Tax Act (Canada).  1997, c. 43, Sched. A, s. 15 (1); 2004, c. 16, s. 2 (2). Exception (10.1) Paragraph 3 of subsection (10) does not apply if, (a) the property in respect of which a designation is made is property described in clause 5.1 (8) (a) or prescribed by the regulations; or (b) the rules or conditions prescribed by the regulations have been satisfied.  1997, c. 43, Sched. A, s. 15 (1); 2004, c. 16, s. 2 (2). Designated amounts (10.2) Despite paragraph 3 of subsection (10), if the corporation making a designation under paragraph 111 (4) (e) of the Income Tax Act (Canada) for a taxation year ending after May 4, 1998 is an Ontario corporation for the taxation year to which the designation relates, or the rules or conditions prescribed in the regulations have been met, the corporation may, upon filing a designation in a form approved by the Minister with the return required under section 75 for the taxation year, designate an amount in respect of a property equal to the total of, (a) an amount equal to, (i) the amount designated in respect of the property under the Income Tax Act (Canada), (ii) the amount designated in respect of the property under the Income Tax Act (Canada), less the cost amount of the property for the purposes of that Act, plus the cost amount of the property for the purposes of this Act, calculated immediately before making the designation, or (iii) an amount that is greater than the lesser of the amounts described in subclauses (i) and (ii), but less than the greater of the amounts described in subclauses (i) and (ii); and (b) the sum of, (i) the amount of the excess, if any, by which the corporation’s non-capital loss balance at the end of the preceding taxation year, as determined under this Act, exceeds its non-capital loss balance at the end of that year, as determined for the purposes of the Income Tax Act (Canada), to the extent the excess has not been included in an amount designated under this subsection in respect of another property, and (ii) the amount of the excess, if any, by which 4/3 of the corporation’s net capital loss balance at the end of the preceding taxation year, as determined under this Act, exceeds 4/3 of its net capital loss balance at the end of that year, as determined for the purposes of the Income Tax Act (Canada), to the extent the excess has not been included in an amount designated under this subsection in respect of another property.  1998, c. 34, s. 36 (2); 2004, c. 16, s. 2 (2). Anti-avoidance (10.3) Subsection (10.2) does not apply in respect of a designation if, (a) the corporation that made the designation, (i) ceases to be an Ontario corporation within 36 months after the taxation year to which the designation relates and still holds the property immediately after it ceases to be an Ontario corporation, or (ii) disposes of the property within 36 months after the taxation year to which the designation relates; or (b) it is reasonable to believe that one of the reasons the corporation or any other person conducted their business and affairs in a manner that resulted in the corporation being an Ontario corporation for the taxation year to which the designation relates is to increase or reduce an amount designated for the purposes of this Act under paragraph 111 (4) (e) of the Income Tax Act
(Canada).  1997, c. 43, Sched. A, s. 15 (1); 1998, c. 34, s. 36 (3); 2001, c. 23, s. 29 (2); 2004, c. 16, s. 2 (2). Definition (10.4) In this section, “Ontario corporation” has the same meaning as in subsection 29.1 (1).  1997, c. 43, Sched. A, s. 15 (1); 2004, c. 16, s. 2 (2). Idem (11) In the application of subsections 111 (5.1), (5.2) and (5.3) of the Income Tax Act
(Canada) for the purposes of this Act, the references therein to “this Part” shall be read as references to Part II of this Act.  R.S.O. 1990, c. C.40, s. 34 (11); 2004, c. 16, s. 2 (2). Limited partnership losses (12) In the application of paragraph 111 (1) (e) of the Income Tax Act
(Canada) for the purposes of this Act, in determining the amount otherwise determined under clause 111 (1) (e) (ii) (B) of that Act, (a) there shall be included all amounts deducted by the corporation for the taxation year under, (i) section 12 in respect of the corporation’s share of the qualified expenditures made by the partnership in that fiscal period, and (ii) section 13 in respect of the portion of the property of the partnership deemed to be eligible assets acquired by the corporation; and (b) there shall be deducted all amounts included in the income of the corporation for the taxation year under subsection 12 (13) with respect to dispositions made by the partnership.  R.S.O. 1990, c. C.40, s. 34 (12); 1992, c. 3, s. 8; 2004, c. 16, s. 2 (2). Application of Income Tax Act (Canada), subss. 111 (10), (11) (13) Subsections 111 (10) and (11) of the Income Tax Act (Canada) do not apply for the purposes of this Act.  1997, c. 43, Sched. A, s. 15 (3); 2004, c. 16, s. 2 (2). Section Amendments with date in force (d/m/y) 1992, c. 3, s. 8 - 25/06/1992; 1994, c. 14, s. 11 (1-3) - 17/12/1991; 1996, c. 29, s. 45 - 01/03/1994; 1997, c. 43, Sched. A, s. 15 (1, 2) - 06/05/1997; 1997, c. 43, Sched. A, s. 15 (3, 4) - 01/01/1997; 1998, c. 34, s. 36 (1) - 19/02/1997; 1998, c. 34, s. 36 (2-4) - 05/05/1998 2001, c. 23, s. 29 (1)
- 28/06/1999; 2001, c. 23, s. 29 (2)
- 05/12/2001 2004, c. 16, s. 2 (2)
- 01/01/2004 2005, c. 31, Sched. 5, s. 4 - 23/03/2004 2007, c. 11, Sched. B, s. 2 (5, 6) - 04/06/2007