43.13 (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 deductions claimed under sections 39 to 41, 43 and 43.3 to 43.12 for the taxation year, an amount not exceeding the amount of its apprenticeship training tax credit for the taxation year.  2004, c. 31, Sched. 9, s. 22. 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 apprenticeship training tax credit for the taxation year exceeds the maximum amount, if any, deductible by the corporation for the year under subsection (1).  2004, c. 31, Sched. 9, s. 22. Amount of tax credit (3) The amount of a corporation’s apprenticeship training tax credit for a taxation year is the total of all amounts each of which is in respect of a qualifying apprenticeship in the taxation year and each of which is the total of “A” and “B” where, “A” is the lesser of, (a) the product obtained by multiplying the corporation’s specified percentage for the taxation year by the corporation’s eligible expenditures made during the taxation year in respect of the qualifying apprenticeship, and (b) the amount calculated using the formula, $5,000 × C/D in which, “C” is the total number of days in the taxation year that the apprentice was employed by the corporation as an apprentice in a qualifying apprenticeship and that were, (a)  after May 18, 2004 and before January 1, 2015, and (b)  during the first 36 months the apprentice was in the apprenticeship program, and “D” is 365 days or, if the taxation year includes February 29, 366 days, and “B” is an amount calculated by multiplying the amount of government assistance repaid by the corporation in the taxation year by the corporation’s specified percentage for the taxation year in which the government assistance was received, to the extent that the repayment does not exceed the amount of the government assistance in respect of the qualifying apprenticeship that, (a) has not been repaid in a prior year, and (b) can reasonably be considered to have reduced the amount of the apprenticeship training tax credit that would otherwise have been allowed to the corporation under this section in respect of the qualifying apprenticeship. 2004, c. 31, Sched. 9, s. 22; 2005, c. 31, Sched. 5, s. 10 (1); 2007, c. 7, Sched. 6, s. 4 (1). Specified percentage (4) A corporation’s specified percentage for a taxation year is the following: 1. 25 per cent if the total of all salaries or wages paid by the corporation in the previous taxation year is $600,000 or more. 2. The percentage determined under subsection (5) 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. 3. 30 per cent in any other case.  2004, c. 31, Sched. 9, s. 22. Same (5) The percentage referred to in paragraph 2 of subsection (4) is calculated by adding 25 per cent and the percentage calculated using the formula, 5% × [1 – (E/200,000)] in which, “E” is the total amount of salaries and wages paid by the corporation in the previous taxation year that is in excess of $400,000. 2004, c. 31, Sched. 9, s. 22. Same, amount of salaries and wages (6) For the purposes of subsections (4) and (5), the amount of salaries and wages paid by a corporation in a previous taxation year shall be deemed to be the amount that would be calculated, (a) if the rules set out in subsections 87 (1.2) and (1.4) of the Income Tax Act (Canada) applied; and (b) if no amount is included in respect of salaries and wages paid by any partnership of which the corporation was a member at any time during the taxation year.  2004, c. 31, Sched. 9, s. 22. Qualifying apprenticeship (7) For the purposes of this section, a qualifying apprenticeship is an apprenticeship in respect of which all of the following conditions and such other conditions as may be prescribed by the Minister are satisfied: 1. The apprentice’s employment as an apprentice in an apprenticeship program with the corporation commenced before January 1, 2012. 2. The apprenticeship is in a qualifying skilled trade in the opinion of the Minister of Training, Colleges and Universities or a person designated by him or her. 3. The corporation, or the corporation acting through a union or a local or joint apprenticeship committee, and the apprentice are participating in an apprenticeship program, i. in which the training agreement has been registered under the Apprenticeship and Certification Act, 1998 by the Director of Apprenticeship or a person designated by him or her, or ii. in which the contract of apprenticeship has been registered under the Trades Qualification and Apprenticeship Act by the Minister of Training, Colleges and Universities or a person designated by him or her.  2004, c. 31, Sched. 9, s. 22; 2007, c. 7, Sched. 6, s. 4 (2). End of apprenticeship (8) For the purposes of this section, a qualifying apprenticeship shall be deemed to end on the earlier of the date on which the apprentice is entitled to receive the appropriate certificate under the Apprenticeship and Certification Act, 1998 or the Trades Qualification and Apprenticeship Act or the date, if any, on which the training agreement or contract of apprenticeship is cancelled, suspended or revoked by the Ministry of Training, Colleges and Universities.  2004, c. 31, Sched. 9, s. 22. Eligible expenditure (9) Subject to subsections (12) and (13), each of the following amounts paid by a corporation in respect of a qualifying apprenticeship is an eligible expenditure for the taxation year: 1. An amount paid to an apprentice in a qualifying apprenticeship if, i. the amount is required, for the purposes of Part III of Regulation 183 of the Revised Regulations of Ontario, 1990 (General) to be included in the amount of salary or wages paid to employees of a permanent establishment of the corporation in Ontario, ii. the amount is required by subdivision a of Division B of Part I of the Income Tax Act (Canada) to be included in the apprentice’s income from a source that is an office or employment, iii. the amount is in respect of a qualifying apprenticeship and is paid or payable for services performed by the apprentice for the corporation after May 18, 2004 and before January 1, 2015, and iv. the amount relates to services provided by the apprentice to the corporation during the first 36 months of the apprenticeship program and does not relate to services performed before the commencement or after the end of the apprenticeship program. 2. A fee paid to an employment agency in consideration for the provision of services performed by the apprentice in the qualifying apprenticeship if, i. the services are performed by the apprentice primarily at a permanent establishment of the corporation in Ontario, ii. the fee is paid or payable for services performed by the apprentice for the corporation after May 18, 2004 and before January 1, 2015, and iii. the fee relates to services performed by the apprentice for the corporation during the first 36 months of the apprenticeship program and does not relate to services performed before the commencement or after the end of the apprenticeship program.  2005, c. 31, Sched. 5, s. 10 (2); 2007, c. 7, Sched. 6, s. 4 (3). Interpretation (10) For the purposes of subparagraphs 1 iv and 2 iii of subsection (9), an apprenticeship program is deemed to commence on the date that the training agreement or contract of apprenticeship is registered with the Ministry of Training, Colleges and Universities.  2004, c. 31, Sched. 9, s. 22; 2006, c. 33, Sched. G, s. 3. Other eligible expenditures (11) Subject to subsections (12) and (13), such other expenditures as may be prescribed are eligible expenditures of a corporation for a taxation year if the prescribed conditions are satisfied.  2004, c. 31, Sched. 9, s. 22. Exception (12) An expenditure made by a corporation in respect of a qualifying apprenticeship is not an eligible expenditure, (a) if the apprentice serves the apprenticeship with a person other than the corporation; or (b) 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.  2004, c. 31, Sched. 9, s. 22. Total eligible expenditures (13) For the purposes of this section, the total of eligible expenditures made by a corporation in respect of a qualifying apprenticeship in a taxation year is calculated using the formula, F – G in which, “F” is the sum of the amounts determined under subsections (9) and (11), and “G” is the amount of all government assistance, if any, that the corporation has received, is entitled to receive or may reasonably be expected to be entitled to receive in respect of the eligible expenditures at the time the corporation’s return for the taxation year is required to be delivered under this Act. 2004, c. 31, Sched. 9, s. 22. Employment agencies (13.1) If a corporation pays a fee to an employment agency in respect of a qualifying apprenticeship that is an eligible expenditure of the corporation for a taxation year, (a) the corporation is deemed to employ the apprentice for the purposes of the definition of “C” in the definition of “A” in subsection (3) and for the purposes of paragraph 1 of subsection (7), and the employment agency is deemed not to employ the apprentice; (b) the corporation is deemed to be participating in the apprenticeship program for the purposes of paragraph 3 of subsection (7), and the employment agency is deemed not to be participating in the apprenticeship program; and (c) the apprentice is deemed to serve the apprenticeship with the corporation for the purposes of clause (12) (a), and not with the employment agency.  2005, c. 31, Sched. 5, s. 10 (3). Limitation (13.2) If an amount paid by a corporation is an eligible expenditure under this section and is also an eligible expenditure under section 43.4, the corporation may include the amount in computing a tax credit under this section or in computing a tax credit under section 43.4 and not in computing both tax credits.  2005, c. 31, Sched. 5, s. 10 (4). Corporate partner (14) If a corporation is a member of a partnership and the partnership would qualify in a particular taxation year of the corporation for an apprenticeship training tax credit if the partnership were a corporation whose fiscal period was its taxation year, the portion of that apprenticeship training 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 apprenticeship training tax credit for the corporation’s taxation year.  2004, c. 31, Sched. 9, s. 22. Limited partner (15) Despite subsection (14), a limited partner’s share of a partnership’s tax credit referred to in subsection (14) shall be deemed to be nil.  2004, c. 31, Sched. 9, s. 22. Deemed tax payment (16) 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 by which “H” exceeds “J” where, “H” is the corporation’s apprenticeship training tax credit for the taxation year, and “J” is 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. 2004, c. 31, Sched. 9, s. 22. Time of deemed payment (17) A corporation shall be deemed to make the payment referred to in subsection (16) 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.  2004, c. 31, Sched. 9, s. 22. Books and records (18) Unless otherwise directed by the Minister, the apprenticeship contract or training agreement that is registered with the Ministry of Training, Colleges and Universities forms part of the records and books of account required to be kept under section 94 by the corporation providing the qualifying apprenticeship.  2004, c. 31, Sched. 9, s. 22. Definitions (19) In this section, “government assistance” means assistance in any form from a government, municipality or other public authority, and includes a grant, subsidy, forgivable loan, deduction from tax or investment allowance, but does not include, (a) a tax credit referred to as a “specified tax credit” in subsection 44.1 (4) of the Act, or (b) a Canadian film or video production tax credit under section 125.4 of the Income Tax Act (Canada) or an investment tax credit under section 127 of that Act; (“aide gouvernementale”) “qualifying skilled trade” means an apprenticeship trade designated by the Minister that is regulated under the Apprenticeship and Certification Act, 1998 or the Trades Qualification and Apprenticeship Act. (“métier spécialisé admissible”)  2004, c. 31, Sched. 9, s. 22. Regulations (20) The Minister may make regulations, (a) prescribing rules for calculating the amount of the apprenticeship training tax credit; (b) prescribing, for the purposes of subsection (7), conditions to be satisfied for an apprenticeship to be a qualifying apprenticeship; (c) prescribing, for the purposes of subsection (11), expenditures and prescribing the conditions to be satisfied for a prescribed expenditure to be an eligible expenditure.  2004, c. 31, Sched. 9, s. 22. Section Amendments with date in force (d/m/y) 2004, c. 31, Sched. 9, s. 22 - 16/12/2004 2005, c. 31, Sched. 5, s. 10 (1-3) - 16/12/2004; 2005, c. 31, Sched. 5, s. 10 (4) - 15/12/2005 2006, c. 33, Sched. G, s. 3 - 16/12/2004 2007, c. 7, Sched. 6, s. 4 (1-3) - 17/05/2007 2009, c. 22, s. 96 (2-4)
- no effect - see Table of Public Statute Provisions Repealed Under Section 10.1 of the Legislation Act, 2006 - 31/12/2019