7 (1) Where, on a particular date, the debt payable by a taxpayer as an employer under this Act in respect of a particular year and all amounts in respect of that year which were at any time before that date either refunded to the taxpayer or applied under this Act exceed the aggregate of all payments previously made in respect of the year by the taxpayer as an employer, the taxpayer shall be charged interest payable to the Minister at the prescribed rate and calculated in the prescribed manner on the excess amount from that date to the date payment of the excess amount is received by the Minister.  1996, c. 29, s. 6 (1). Exception, years before 2022 (1.1) The amount of interest payable under subsection (1) by an employer in respect of a particular year beginning before January 1, 2022 shall be calculated without regard to any amount the employer failed to pay as an instalment on account of the tax payable by the employer for the year, if the employer’s total Ontario remuneration for the prior year was not more than $600,000. 2020, c. 36, Sched. 11, s. 4. Same, 2022 and subsequent years (1.1.1) The amount of interest payable under subsection (1) by an employer in respect of a particular year ending after December 31, 2021 shall be calculated without regard to any amount the employer failed to pay as an instalment on account of the tax payable by the employer for the year, if the employer’s total Ontario remuneration for the prior year was not more than $1,200,000. 2020, c. 36, Sched. 11, s. 4. Same (1.2) If an employer, (a) was formed in a year as a result of an amalgamation under section 87 of the Income Tax Act (Canada); (b) was formed and acquired property in the year as a result of a qualifying exchange under section 132.2 of the Income Tax Act
(Canada); or (c) was formed and acquired in the year all or substantially all of the property of a transferor in a transfer to which subsection 85 (1) or (2) or 97 (2) of the Income Tax Act (Canada) applies, the total Ontario remuneration paid by the employer for the year shall be determined, for the purposes of subsection (1.1), by multiplying the total Ontario remuneration paid by the employer for the year by the ratio of 365 to the number of days in the year.  2002, c. 22, s. 66. Same (1.3) Subsection (1.1) does not apply to the following employers for a particular year beginning before January 1, 2022 if the condition specified with respect to the employer is satisfied: 1. An employer that was formed in the year as a result of an amalgamation under section 87 of the Income Tax Act (Canada), if the total Ontario remuneration for the prior year of at least one of the predecessor corporations that amalgamated to form the employer in that year was more than $600,000. 2. An employer that acquired property in the year in the course of a winding-up to which subsection 88 (1) or (2) of the Income Tax Act (Canada) applies, if the total Ontario remuneration for the prior year of the corporation that transferred the property to the employer in the year in the course of the winding-up was more than $600,000. 3. An employer that acquired property in the year as a result of a qualifying exchange under section 132.2 of the Income Tax Act
(Canada), if the total Ontario remuneration for the prior year of the corporation or trust that disposed of the property to the employer in the year was more than $600,000. 4. An employer that acquired in the year all or substantially all of the property of a transferor in a transfer to which subsection 85 (1) or (2) or 97 (2) of the Income Tax Act (Canada) applies, if the total Ontario remuneration for the prior year of the transferor was more than $600,000.  2002, c. 22, s. 66; 2021, c. 40, Sched. 8, s. 1 (1). Same, 2022 and subsequent years (1.3.1) Subsection (1.1.1) does not apply to the following employers for a particular year ending after December 31, 2021, if the condition specified with respect to the employer is satisfied: 1. An employer that was formed in the year as a result of an amalgamation under section 87 of the Income Tax Act (Canada), if the total Ontario remuneration for the prior year of at least one of the predecessor corporations that amalgamated to form the employer in that year was more than $1,200,000. 2. An employer that acquired property in the year in the course of a winding-up to which subsection 88 (1) or (2) of the Income Tax Act (Canada) applies, if the total Ontario remuneration for the prior year of the corporation that transferred the property to the employer in the year in the course of the winding-up was more than $1,200,000. 3. An employer that acquired property in the year as a result of a qualifying exchange under section 132.2 of the Income Tax Act (Canada), if the total Ontario remuneration for the prior year of the corporation or trust that disposed of the property to the employer in the year was more than $1,200,000. 4. An employer that acquired in the year all or substantially all of the property of a transferor in a transfer to which subsection 85 (1) or (2) or 97 (2) of the Income Tax Act
(Canada) applies, if the total Ontario remuneration for the prior year of the transferor was more than $1,200,000.2021, c. 40, Sched. 8, s. 1 (2). Interest paid, employer (2) Where, on a particular date, the aggregate of all payments previously made by a taxpayer as an employer under this Act in respect of a particular year exceeds the debt payable in respect of the year under this Act as of that date by the taxpayer as an employer and all amounts in respect of that year which were at any time before that date either refunded to the taxpayer or applied under this Act, the Minister shall pay, credit or apply under this Act interest at the prescribed rate and calculated in the prescribed manner on the excess amount from that date to the date the amount of the excess is refunded to the taxpayer or applied in accordance with this Act.  1996, c. 29, s. 6 (1). (2.1), (2.2) Repealed:  2009, c. 18, Sched. 11, s. 2. Compound interest (3) Interest under this section shall be computed and compounded daily to the date on which it is paid, refunded or applied under this Act.  R.S.O. 1990, c. E.11, s. 7 (3); 1994, c. 8, s. 7 (2). Amount of debt, employer (4) In this section, the amount of the debt payable under this Act as of a particular date by a taxpayer as an employer in respect of a particular year is the amount, if any, by which, (a) the aggregate of, (i) any instalment of tax under this Act in respect of the particular year payable before the particular date by the taxpayer as an employer, (ii) the amount by which the amount of tax for the year, if any, payable under this Act before the particular date by the taxpayer as an employer exceeds all instalments of tax in respect of the year payable by the taxpayer as an employer, (iii) all penalties having an effective date on or before the particular date that have been assessed under this Act in respect of the year against the taxpayer as an employer, (iv) the total of all amounts each of which is an amount of interest in respect of the year charged under this section before the particular date to the taxpayer as an employer, and (v) all other amounts in respect of the year that on or before the particular day became payable under this Act in respect of the taxpayer as an employer, or became collectible and enforceable as if they were tax payable under this Act by the taxpayer as an employer, exceeds, (b) the aggregate of, (i) the amount, if any, by which all instalments of tax in respect of the year payable before the particular date by the taxpayer as an employer exceeds the amount of tax payable for the year under this Act by the taxpayer as an employer, and (ii) all amounts each of which is an amount of interest in respect of the year credited under this section before the particular date to the taxpayer as an employer.  1996, c. 29, s. 6 (2). (5) Repealed:  2009, c. 18, Sched. 11, s. 2. Effective date of penalties (6) For the purposes of this section, the effective date of a penalty assessed under this Act is as follows: 1. If the penalty is assessed under section 30, the effective date of the penalty is the date that the person is required under this Act to deliver the return, statement or other document to which the penalty relates. 2. If the penalty is assessed under any other section of this Act, the effective date of the penalty is the date the penalty is assessed.  1996, c. 29, s. 6 (4). No interest until return delivered (7) Despite subsection (2), if a return for a year is delivered after the day on or before which it is required to be delivered under section 5, no interest shall be paid, credited or applied under this Act for the period of time from the day on or before which the return was required to be delivered to the Minister to the day after the day the return is delivered to the Minister.  1996, c. 29, s. 6 (4); 2012, c. 8, Sched. 13, s. 2. Section Amendments with date in force (d/m/y) 1994, c. 8, s. 7 (1, 3) - 01/01/1993; 1994, c. 8, s. 7 (2) - 01/01/1994; 1996, c. 29, s. 6 (1-4) - 09/12/1996 2001, c. 23, s. 76
- 01/01/2000 2002, c. 22, s. 66 - 01/01/2000 2009, c. 18, Sched. 11, s. 2 - 05/06/2009 2012, c. 8, Sched. 13, s. 2 - 20/06/2012 2020, c. 36, Sched. 11, s. 4 - 08/12/2020 2021, c. 40, Sched. 8, s. 1 (1, 2) - 09/12/2021