1 (1) In this Act, “assessment” includes reassessment; (“cotisation”) “auditor” means a person appointed by the Minister to carry out audits and examinations under this Act; (“vérificateur”) “bankrupt”, when used as a noun, means a person who makes an assignment under the Bankruptcy and Insolvency Act (Canada) or against whom a receiving order has been made under that Act and, when used as an adjective, means the legal status of that person; (“failli”) “business” includes a profession, calling, trade, manufacture or undertaking of any kind whatever and an adventure or concern in the nature of trade, but does not include an office or employment; (“entreprise”, “affaire”) “eligible employer” means, in respect of a particular time, an employer who is not, at that time, (a) a person in the public sector, as described in clauses 1 (a) to (i) and section 2 of the Schedule to the Social Contract Act, 1993, and not subject to tax under Part I of the Income Tax Act (Canada), (b) the Crown in right of Canada or of another province or the government of a territory, (c) any of the following persons who are not subject to tax under Part I of the Income Tax Act (Canada) for the year: 1. an agency of the Crown, 2. an authority, board, commission, corporation, office or organization of persons a majority of whose directors, members or officers are appointed or chosen by or under the authority of the Governor General in Council or a member of the Privy Council or by a Lieutenant Governor in Council or a member of the Executive Council of a province, (d) a person that is exempt throughout the year from tax under Part I of the Income Tax Act (Canada) under any of paragraphs 149 (1) (a) to (d.6), (h.1), (o) to (o.2), (o.4) to (s.2) and (u) to (z) of that Act, or (e) a person prescribed not to be an eligible employer for the purposes of section 2.1; (“employeur admissible”) “employee” means, (a) an individual employed by an employer, (b) an individual who holds office from an employer and receives remuneration in respect of the performance of the duties of the office, (c) an individual who was formerly an employee within the meaning of clause (a) or (b); (“employé”) “employer” means a person or a government, including the government of a province, a territory or Canada, who pays remuneration to an employee; (“employeur”) “Minister” means the Minister of Finance; (“ministre”) “Ministry” means the Ministry of Finance; (“ministère”) “place of business” means a place where an undertaking or activity, including a function of government, is carried on, whether or not carried on for gain or profit; (“lieu d’affaires”) “prescribed” means prescribed by the regulations; (“prescrit”) “quarter”, in respect of an instalment of tax under this Act, refers to a period of three consecutive months; (“trimestre”) “registered charity” has the same meaning as in subsection 248 (1) of the Income Tax Act (Canada); (“organisme de bienfaisance enregistré”) “regulations” means regulations made under this Act; (“règlements”) “remuneration” includes all payments, benefits and allowances received or deemed to be received by an individual that, by reason of section 5, 6 or 7 of the Income Tax Act (Canada), are required, or would be required if the individual were resident in Canada, to be included in the income of the individual for the purposes of that Act and, without limiting the generality of the foregoing, includes salaries and wages, bonuses, taxable allowances and commissions and other similar amounts fixed by reference to the volume of sales made or contracts negotiated, but does not include a pension, annuity or superannuation benefit paid by an employer to a former employee after retirement of the employee; (“rémunération”) “taxpayer” means a person who is an employer, whether or not that person is liable to pay tax under this Act; (“contribuable”) “total Ontario remuneration”, in respect of an employer, means the total remuneration paid, (a) to or on behalf of all of the employees of the employer who report for work at a permanent establishment of the employer in Ontario, and (b) to or on behalf of all of the employees of the employer who are not required to report for work at a permanent establishment of the employer but whose remuneration is paid from or through a permanent establishment of the employer in Ontario. (“rémunération totale en Ontario”)  R.S.O. 1990, c. E.11, s. 1 (1); 1994, c. 8, s. 1 (1-8); 1994, c. 17, s. 57 (1); 1996, c. 18, s. 4 (1); 1996, c. 24, s. 1 (1-3); 1999, c. 9, s. 106; 2001, c. 23, s. 71; 2004, c. 16, Sched. D, Table; 2009, c. 18, Sched. 11, s. 1 (1, 2) ; 2012, c. 8, Sched. 13, s. 1; 2013, c. 15, s. 1. Interpretation (1.1) Where this Act uses the word “person” to refer to an employer who is liable to pay a tax under subsection 2 (1), “person” shall be deemed to include an unincorporated association, a partnership and a trust.  1994, c. 17, s. 57 (2); 2004, c. 16, Sched. D, Table. Remuneration (1.2) The following rules apply in determining for the purposes of this Act the amount of remuneration or total Ontario remuneration paid by an employer: 1. An amount paid by the employer to a trustee or custodian, as the case may be, for the benefit of an employee under an employees profit sharing plan, employee benefit plan, employee trust or salary deferral arrangement is deemed to be remuneration paid by the employer to or on behalf of the employee if the amount, upon payment or allocation to the employee, is by reason of section 5, 6 or 7 of the Income Tax Act
(Canada) required to be included in the income of a person under that Act. 2. An amount or benefit that is received or enjoyed, or deemed to be received or enjoyed, by an employee in respect of his or her employment with the employer and that is required to be included in the income of a person under the Income Tax Act (Canada) by reason of section 5, 6 or 7 of that Act is deemed to be remuneration paid by the employer to or on behalf of the employee. 3. The amount of a benefit referred to in paragraph 2 is deemed to be the amount that is required to be included in the income of a person under the Income Tax Act (Canada).  2004, c. 31, Sched. 12, s. 1. Rules for determining amount of total Ontario remuneration (1.3) For the purposes of the definition of “total Ontario remuneration” in subsection (1), the total remuneration paid to or on behalf of an employee who reports for work at a permanent establishment of an employer in Ontario at any time during a year includes all remuneration paid to or on behalf of the employee during the year, even if the employee also reports for work at a permanent establishment of the employer outside Ontario at any time during the year.  2004, c. 31, Sched. 12, s. 1. Exception (1.4) Despite subsection (1.3), no remuneration paid to or on behalf of an employee is included in an employer’s total Ontario remuneration for a year if the Minister is satisfied that the employee reported for work at a permanent establishment of the employer outside Ontario for all or substantially all of the year.  2004, c. 31, Sched. 12, s. 1. Exception, application after 2001 only (1.5) Subsection (1.3) does not apply for any year before 2002 to a professional sports team that was a party to the application in the matter of Toronto Blue Jays Baseball Club v. Ontario (Minister of Finance), decided by the Ontario Superior Court of Justice on April 27, 2004.  2004, c. 31, Sched. 12, s. 1. Permanent establishment, employer (2) In this Act, “permanent establishment”, in respect of an employer, includes any fixed place of business, including an agency, a branch, a factory, a farm, a gas well, a mine, an office, an oil well, timberland, a warehouse and a workshop and, without limiting the generality of the foregoing, (a) a corporation has a permanent establishment in the place designated in its charter or by-laws as being its head or registered office, (b) a person shall be deemed to have a permanent establishment in a jurisdiction in which the person carries on business through an employee or an agent either of whom has general authority to contract for the person, (c) a person shall be deemed to have a permanent establishment in a jurisdiction in which an employee or agent of the person has a stock of merchandise owned by the person from which the employee or agent fills orders received by the employee or agent, (d) land or premises owned or leased by an employer is a permanent establishment of the employer, (e) an employer shall be deemed to have a permanent establishment in the place where and at the time when the employer uses substantial machinery or equipment, (f) an insurance corporation has a permanent establishment in each jurisdiction in which the corporation is registered or licensed to do business, (g) an employer, who does not otherwise carry on business in Canada in a year, has a permanent establishment at any place where the employer produces, grows, mines, creates, manufactures, fabricates, improves, packs, preserves, processes or constructs, in whole or in part, anything in Canada, whether or not the employer exports that thing without selling it prior to exportation, and (h) an employer who has no fixed place of business shall be deemed to have a permanent establishment in the principal place in which the employer conducts business and in each place from which the employer carries on or transacts a substantial portion of the business.  R.S.O. 1990, c. E.11, s. 1 (2); 1994, c. 8, s. 1 (9); 2004, c. 16, Sched. D, Table. (3) Repealed:  2009, c. 18, Sched. 11, s. 1 (3). Reporting for work at a permanent establishment (3.1) For the purposes of this Act, an employee is considered to report for work at a permanent establishment of an employer, (a) if the employee comes to the permanent establishment in person to work; or (b) if, although the employee does not come to the permanent establishment in person to work, he or she may reasonably be regarded as attached to the permanent establishment.  2002, c. 22, s. 65; 2004, c. 16, Sched. D, Table. (4), (5) Repealed:  2009, c. 18, Sched. 11, s. 1 (3). Associated employers (5.1) For the purposes of determining if two or more employers are associated at any time in a year, (a) section 256 of the Income Tax Act (Canada) applies for the purposes of this Act; (b) if an employer is an individual, the employer shall be deemed to be a corporation, all the issued shares of the capital stock of which have full voting rights under all circumstances and are owned by the individual; (c) if an employer is a partnership or trust, it shall be deemed to be a corporation having only one class of issued shares which have full voting rights under all circumstances, and each member of the partnership or beneficiary of the trust, as the case may be, shall be deemed to own at a particular time the greatest proportion of the number of issued shares of the capital stock of the corporation that, (i) the member’s or beneficiary’s share of the income or loss of the partnership or trust for the fiscal period of the partnership or trust that includes that time, is of, (ii) the income or loss of the partnership or trust for that period, and for the purposes of this clause, if the income and loss of the partnership or trust for that period are nil, that proportion shall be computed as if the partnership or trust had income for that period in the amount of $1; (d) employers that are corporations, or are deemed to be corporations, that would be associated with each other under the Income Tax Act (Canada) at any time in the year shall be deemed to be employers that are associated with each other at that time; and (e) if two employers would, but for this clause, not be associated with each other at any time, but are associated at that time with another employer, they shall be deemed to be associated with each other at that time.  1996, c. 18, s. 4 (3); 2004, c. 16, Sched. D, Table. Remuneration of former employees (6) Remuneration received or deemed to be received after May 7, 1996 by an individual who is no longer employed by an employer shall be included in the total Ontario remuneration of the employer if the remuneration is in respect of the previous employment with the employer or is received or deemed to be received by virtue of the individual’s having been employed by the employer.  1996, c. 24, s. 1 (4). Deemed remuneration (7) If all of the following circumstances exist, an amount paid to an employee of an employer by a third person after December 31, 1998 shall be deemed to be remuneration paid by the employer to the employee: 1. The amount is paid to the employee for providing a service in Ontario to a person other than the employer. 2. The service is substantially similar to employment functions that can reasonably be expected to be performed by an employee of the employer in the normal course of employment. 3. At the time the employee provides the service, he or she is an employee of the employer. 4. It is reasonable to believe that the employee would not have been engaged to provide the service if he or she was not employed by the employer. 5. The employer does not pay the employee any reasonable amount of remuneration or other compensation for providing the service. 6. The amount is not otherwise included in the employer’s total Ontario remuneration paid for the year.  1998, c. 34, s. 59. Same (8) An amount that is deemed to be remuneration paid by an employer to an employee under subsection (7) shall be deemed, for the purposes of subsection 3 (4), to be paid by the employer in the same month or quarter, as applicable, in which the third person pays the amount to the employee.  1998, c. 34, s. 59. Same, definition (9) For the purposes of subsections (7) and (8), “third person” includes a partnership, an unincorporated association, syndicate or organization, a trust, a government, an agency, a statutory authority, a board or commission and any other type of entity, whether or not it is a person at law.  1998, c. 34, s. 59; 2004, c. 16, Sched. D, Table. Section Amendments with date in force (d/m/y) 1994, c. 8, s. 1 (1-3, 5-7), 36 - 23/06/1994; 1994, c. 8, s. 1 (4) - 01/06/1993; 1994, c. 8, s. 1 (8) - 01/01/1992; 1994, c. 8, s. 1 (9, 10) - 01/01/1993; 1994, c. 17, s. 57 (1, 2) - 01/01/1994; 1996, c. 18, s. 4 (1-3) - 01/01/1997; 1996, c. 24, s. 1 (1) - 01/04/1996; 1996, c. 24, s. 1 (2, 4) - 08/05/1996; 1996, c. 24, s. 1 (3) - 31/10/1996; 1998, c. 34, s. 58 - 01/01/1998; 1998, c. 34, s. 59 - 01/01/1999; 1999, c. 9, s. 106 - 01/01/1999 2001, c. 23, s. 71 (1) - 01/01/2001; 2001, c. 23, s. 71 (2) - 05/12/2001 2002, c. 22, s. 65
- 01/01/2003 2004, c. 16, Sched. D, Table - 01/01/2004; 2004, c. 31, Sched. 12, s. 1 - 01/01/1990 2009, c. 18, Sched. 11, s. 1 (1-3) - 05/06/2009 2012, c. 8, Sched. 13, s. 1 - 20/06/2012 2013, c. 15, s. 1 (1-3)- 12/12/2013