43.6 (1) A corporation that complies with the requirements of this section may deduct from its tax otherwise payable under this Part for a taxation year, after making all the deductions for the taxation year claimed under sections 39, 40, 41, 43 and 43.2 to 43.5, an amount not exceeding the amount of its graduate transitions tax credit for the taxation year.  1997, c. 43, Sched. A, s. 20; 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 graduate transitions tax credit for the taxation year exceeds the maximum amount, if any, deductible by the corporation for the year under subsection (1).  1997, c. 43, Sched. A, s. 20; 2004, c. 16, s. 2 (2). Amount of tax credit (3) The amount of a corporation’s graduate transitions tax credit for a taxation year is the sum of, (a) all amounts each of which is in respect of a qualifying employment that commenced not less than 12 months before the end of the taxation year or terminated before the end of the taxation year, equal to the lesser of the corporation’s eligible amount for the taxation year in respect of the qualifying employment determined under subsection (4) and $4,000; 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 the qualifying employment of an employee, to the extent the repayment does not exceed the amount of the assistance in respect of the qualifying employment that, (i) has not been repaid in a prior taxation year, and (ii) can reasonably be considered to have reduced the amount of a graduate transitions tax credit that would otherwise have been allowed to the corporation under this Act in respect of the qualifying employment.  1997, c. 43, Sched. A, s. 20; 2004, c. 16, s. 2 (2). Eligible amount (4) A corporation’s eligible amount for a taxation year in respect of a qualifying employment is the amount determined under the following rules: 1. If the qualifying employment commenced before January 1, 1998, the amount is 10 per cent of the total of all eligible expenditures made by the corporation in respect of the qualifying employment. 2. If the qualifying employment commenced after December 31, 1997 and 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 employment. 3. If the qualifying employment commenced after December 31, 1997 and 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 employment. 4. If the qualifying employment commenced after December 31, 1997 and 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 employment, “B” is the amount of all eligible expenditures made by the corporation in respect of the qualifying employment, 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. 20; 2004, c. 16, s. 2 (2). Number of tax credits (5) Except for a tax credit in respect of the repayment of government assistance, a tax credit under this section may be claimed only once in respect of each qualifying employment.  1997, c. 43, Sched. A, s. 20; 2004, c. 16, s. 2 (2). Deemed employment by one corporation (6) Consecutive periods of employment by two or more associated corporations shall be deemed to be one continuous period of employment by only one of the corporations, as designated by the corporations.  1997, c. 43, Sched. A, s. 20; 2004, c. 16, s. 2 (2). Same (7) If consecutive periods of employment are deemed under subsection (6) to be one period of employment by only one of two or more associated corporations and that period of employment would otherwise be a qualifying employment under this section, (a) all amounts referred to in subsection (11) that were paid by any of the associated corporations shall be deemed to have been paid by the corporation designated under subsection (6) and not by any other corporation; and (b) government assistance received by any of the associated corporations in respect of the qualifying employment shall be deemed to have been received by the corporation designated under subsection (6) and not by any other corporation.  1997, c. 43, Sched. A, s. 20; 2004, c. 16, s. 2 (2). Corporate partner (8) If a corporation is a member of a partnership and the partnership would qualify in a particular taxation year of the corporation for a graduate transitions tax credit if the partnership were a corporation whose fiscal period was its taxation year, the portion of that graduate transitions 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 graduate transitions tax credit for the corporation’s taxation year.  1997, c. 43, Sched. A, s. 20; 2004, c. 16, s. 2 (2). Limited partner (9) Despite subsection (8), a limited partner’s share of a partnership’s tax credit referred to in subsection (8) shall be deemed to be nil.  1997, c. 43, Sched. A, s. 20; 2004, c. 16, s. 2 (2). Qualifying employment (10) The employment of an employee by a corporation is a qualifying employment if, (a) the employment commenced after May 6, 1997 but before July 6, 2004 and continued for at least six consecutive months; (a.1) during the six-month period referred to in clause (a), the employee was required to work an average of more than 24 hours a week; and (b) the employee, (i) was not related to the corporation at the time the employment commenced, (ii) had not been employed by any person more than 15 hours per week during 16 of the 32 weeks immediately before the first day of the employment, (iii) had not had a source of income from a business for at least 16 of the 32 weeks immediately preceding the first day of the employment, (iv) completed all requirements to qualify for graduation from a prescribed program of study within three years before the first day of the employment, and (v) carried out his or her employment duties at or through a permanent establishment of the corporation in Ontario.  1997, c. 43, Sched. A, s. 20; 2004, c. 16, s. 2 (2); 2004, c. 31, Sched. 9, s. 19 (1). Eligible expenditures (11) A corporation’s eligible expenditures in respect of a qualifying employment are the amounts that are paid or payable before January 1, 2005 to the employee as salary or wages during the 12-month period commencing on the first day of the qualifying employment and that, (a) would be considered for the purposes of Part III of Regulation 183 of the Revised Regulations of Ontario, 1990 to be included in the amount of salary or wages paid to employees of a permanent establishment of the corporation in Ontario; and (b) are required by subdivision a of Division B of Part I of the Income Tax Act (Canada) to be included in the income from employment of the employee in respect of the qualifying employment.  1997, c. 43, Sched. A, s. 20; 2004, c. 16, s. 2 (2); 2004, c. 31, Sched. 9, s. 19 (2). Same (12) The total of all eligible expenditures made by a corporation in respect of a qualifying employment shall be the amount otherwise determined less the amount of all government assistance, if any, in respect of the eligible expenditures that, at the time the corporation is required to deliver a return under subsection 75 (1) for the taxation year for which the tax credit is claimed, the corporation has received, is entitled to receive or can reasonably be expected to be entitled to receive.  1997, c. 43, Sched. A, s. 20; 2004, c. 16, s. 2 (2). Exception (13) Despite subsections (11) and (12), an expenditure made by a corporation in respect of a qualifying employment is not an eligible expenditure in respect of the employment, (a) to the extent that the amount of the expenditure would not be considered to be reasonable in the circumstances by persons dealing with each other at arm’s length; or (b) if the qualifying employment is with a person other than the corporation.  1997, c. 43, Sched. A, s. 20; 2004, c. 16, s. 2 (2). Definitions (14) In this section, “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”) “government assistance” means assistance from a government, municipality or other public authority in any form, including a grant, subsidy, forgivable loan, deduction from tax and investment allowance, but does not include the following: 1. An Ontario innovation tax credit under section 43.3. 2. An Ontario film and television tax credit under section 43.5. 3. A graduate transitions tax credit under this section. 4. An Ontario book publishing tax credit under section 43.7. 5. An Ontario computer animation and special effects tax credit under section 43.8. 6. An Ontario business-research institute tax credit under section 43.9. 6.1 An Ontario production services tax credit under section 43.10. 6.2 An Ontario interactive digital media tax credit under section 43.11. 6.3 An Ontario sound recording tax credit under section 43.12. 7. A Canadian film or video production tax credit under section 125.4 of the Income Tax Act (Canada). 8. An investment tax credit under section 127 of the
Income Tax Act (Canada); (“aide gouvernementale”) “prescribed program of study” means a program of study that satisfies the rules prescribed by the regulations. (“programme d’études prescrit”)  1997, c. 43, Sched. A, s. 20; 1998, c. 5, s. 14; 1998, c. 34, s. 40; 2004, c. 16, s. 2 (2). Deemed tax payment (15) 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 graduate transitions 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.  1997, c. 43, Sched. A, s. 20; 2004, c. 16, s. 2 (2). Time of deemed payment (16) A corporation shall be deemed to make the payment referred to in subsection (15) 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.  1997, c. 43, Sched. A, s. 20; 2004, c. 16, s. 2 (2). Regulations (17) The Lieutenant Governor in Council may make regulations prescribing the method of calculating the amount of salaries or wages that will be deemed to be paid by a corporation in a taxation year for the purposes of subsection (4).  1997, c. 43, Sched. A, s. 20; 2004, c. 16, s. 2 (2). Section Amendments with date in force (d/m/y) 1997, c. 43, Sched. A, s. 20 - 07/05/1997; 1998, c. 5, s. 14 - 01/11/1997; 1998, c. 34, s. 40 (1) - 01/07/1998; 1998, c. 34, s. 40 (2) - 01/01/1999 2004, c. 16, s. 2 (2)
- 01/01/2004; 2004, c. 31, Sched. 9, s. 19 (1, 2) - 16/12/2004