4 (1) In this section, “federal refundable capital gains tax on hand” means, in respect of a mutual fund trust, the trust’s refundable capital gains tax on hand determined under section 132 of the Federal Act as of the same date that the determination is made for the purposes of this section; (“impôt fédéral en main remboursable au titre des gains en capital”) “highest tax rate” means, for a taxation year, 11.16 per cent; (“taux d’imposition le plus élevé”) “income earned in the taxation year in Ontario” means the amount of income that would be determined to be earned in the year in Ontario for the purposes of determining the amount of income earned in the year in a province under section 120 of the Federal Act; (“revenu gagné en Ontario au cours de l’année d’imposition”) “income earned in the taxation year outside Ontario” means income for the year minus income earned in the taxation year in Ontario; (“revenu gagné hors de l’Ontario au cours de l’année d’imposition”) “income for the year” means, (a) in the case of an individual resident in Canada during part only of the taxation year in respect of whom section 114 of the Federal Act applies, the aggregate of, (i) the individual’s income for the period or periods in the year referred to in paragraph 114 (a) of the Federal Act as determined in accordance with and for the purposes of the Federal Act, and (ii) the individual’s income for the portion of that year that is not included in the period or periods referred to in subclause (i) computed under paragraphs 115 (1) (a), (b) and (c) of the Federal Act as though such portion of the year were the whole taxation year, (b) in the case of an individual not resident in Canada at any time in the taxation year, the individual’s income for the year as computed under paragraphs 115 (1) (a), (b), (b.1) and (c) of the Federal Act, and (c) in the case of any other individual, the individual’s income for the year as determined in accordance with and for the purposes of the Federal Act; (“revenu pour l’année”) “lowest tax rate” means, (a) 6.37 per cent for the 2000 taxation year, (b) 6.16 per cent for the 2001 taxation year, (c) 6.05 per cent for the 2002 and each subsequent taxation year; (“taux d’imposition le moins élevé”) (d)  Repealed:  2003, c. 7, s. 10 (1). “middle tax rate” means, (a) 9.62 per cent for the 2000 taxation year, (b) 9.22 per cent for the 2001 taxation year, (c) 9.15 per cent for the 2002 and each subsequent taxation year; (“taux d’imposition moyen”) (d)  Repealed:  2003, c. 7, s. 10 (2). “Ontario allocation factor” means, in respect of an individual for a taxation year, the ratio of the amount of the individual’s income earned in the taxation year in Ontario to the amount of the individual’s income for the year; (“coefficient de répartition de l’Ontario”) “Ontario refundable capital gains tax on hand” means, in respect of a mutual fund trust, the amount calculated under subsection (1.1); (“impôt ontarien en main remboursable au titre des gains en capital”) “tax payable under the Federal Act” means the amount that, but for section 120 of the Federal Act, would be the tax payable by an individual under Part I of that Act for the taxation year in respect of which the expression is being applied, computed as if the individual were not entitled to a deduction under section 126, 127, 127.2, 127.4 or 127.41 of that Act. (“impôt payable en application de la loi fédérale”)  R.S.O. 1990, c. I.2, s. 4 (1); 1996, c. 1, Sched. C, s. 4; 1996, c. 24, s. 12; 1999, c. 9, s. 117 (1); 2000, c. 10, s. 13 (1); 2000, c. 42, s. 50 (1); 2001, c. 23, s. 128 (1, 2); 2002, c. 22, s. 105; 2003, c. 7, s. 10; 2004, c. 16, s. 3. Ontario refundable capital gains tax on hand (1.1) For a mutual fund trust, the amount of the Ontario refundable capital gains tax on hand at the end of a taxation year is the amount calculated using the formula, A + B – C in which, “A” is the total of all amounts, each of which is an amount in respect of a particular taxation year that is either the taxation year or a prior taxation year ending after December 31, 1999 and throughout which the trust was a mutual fund trust, that is equal to the lesser of, (a) the amount of tax that would be payable under this section by the trust for the year, calculated without reference to subsections (6) to (9.1), and (b) the amount calculated using the formula, T × R × F in which “T” is the lesser of the trust’s income for the year and the amount of its taxed capital gains for the year for the purposes of section 132 of the Federal Act, “R” is the highest tax rate for the taxation year and “F” is the trust’s Ontario allocation factor for the year, “B” is the total of all refunds to which the trust was entitled under subsection (8) for prior taxation years ending before January 1, 2000, and “C” is the total of all refunds the trust was entitled to claim and claimed under subsection (8) for prior taxation years. 2000, c. 10, s. 13 (2); 2004, c. 16, s. 3. Amount of tax before 2000, individuals (2) The amount of tax payable by an individual for a taxation year ending before January 1, 2000 is the amount determined under the applicable following paragraph: 1. If the individual resides in Ontario on the last day of the taxation year and has no income earned in the taxation year outside Ontario, the amount of tax payable by the individual for the taxation year is the amount calculated using the formula, R × T in which, “R” is the percentage for the year specified in subsection (5), and “T” is the amount of the tax payable under the Federal Act for the year. 2. If the individual resides in Ontario on the last day of the taxation year and has income earned in the taxation year outside Ontario or, if the individual does not reside in Ontario on the last day of the taxation year but has income earned in the year in Ontario, the amount of tax payable by the individual for the taxation year is the amount calculated using the formula, F × R × T in which, “F” is the individual’s Ontario allocation factor for the year, “R” is the percentage for the year specified in subsection (5), and “T” is the amount of the tax payable under the Federal Act for the year. 2000, c. 10, s. 13 (3); 2004, c. 16, s. 3. Amount of tax after 1999 (3) The amount of tax payable for a taxation year ending after December 31, 1999 by an individual described in section 2 is the amount determined under the applicable following paragraph, less the deductions permitted under this section and plus the additional taxes, if any, payable under sections 2.2, 3 and 4.3 to 4.8: 1. If the individual’s taxable income for the year does not exceed $30,004, the amount of tax payable by the individual is calculated by multiplying the individual’s taxable income for the year by the lowest tax rate for the year. 2. If the individual’s taxable income for the year exceeds $30,004 but does not exceed $60,009, the amount of tax payable by the individual is calculated using the formula, A + B in which, “A” is the amount calculated by multiplying $30,004 by the lowest tax rate for the year, and “B” is the amount calculated by subtracting $30,004 from the individual's taxable income for the year, and then multiplying the resulting amount by the middle tax rate for the year. 3. If the individual’s taxable income for the year exceeds $60,009, the amount of tax payable by the individual is calculated using the formula, A + C + D in which, “A” is the amount calculated by multiplying $30,004 by the lowest tax rate for the year, “C” is the amount calculated by multiplying $30,005 by the middle tax rate for the year, and “D” is the amount calculated by subtracting $60,009 from the individual’s taxable income for the year, and then multiplying the resulting amount by the highest tax rate for the year. 4. Despite paragraphs 1, 2 and 3, the amount of tax payable for the year by a trust to which subsection 122 (1) of the Federal Act applies is calculated by multiplying the trust’s taxable income for the year by the highest tax rate for the year.  2000, c. 42, s. 50 (2); 2004, c. 16, s. 3; 2004, c. 29, s. 5 (1). Non-refundable credits (3.1) Subject to the rules in subsection (3.2), an individual may deduct from the amount of tax payable under paragraph 1, 2, 3 or 4 of subsection (3) for a taxation year ending after December 31, 1999 any of the following credits to which the individual is entitled for the taxation year in the amount determined for the year under section 4.0.1: 1. A spouse or common-law partner credit if the individual is entitled to include an amount under paragraph 118 (1) (a) of the Federal Act in the calculation of his or her personal credit for the year under subsection 118 (1) of that Act. 2. A credit for a wholly dependent person if the individual is entitled to include an amount under paragraph 118 (1) (b) of the Federal Act in the calculation of his or her personal credit for the year under subsection 118 (1) of that Act. 3. A single status credit if the individual is entitled to include an amount under paragraph 118 (1) (c) of the Federal Act in the calculation of his or her personal credit for the year under subsection 118 (1) of that Act. 4. A credit for in-home care of a person if the individual is entitled to include an amount in respect of the person under paragraph 118 (1) (c.1) of the Federal Act in the calculation of his or her personal credit for the year under subsection 118 (1) of that Act. 5. A credit for a dependant if the individual is entitled to include an amount in respect of the dependant under paragraph 118 (1) (d) of the Federal Act in the calculation of his or her personal credit for the year under subsection 118 (1) of that Act. 6. A credit in respect of a person described in paragraph 118 (1) (e) of the Federal Act if the individual is entitled to include an amount under that paragraph in the calculation of his or her personal credit for the year under subsection 118 (1) of that Act in respect of the person. 7. An age credit if the individual is entitled to a deduction under subsection 118 (2) of the Federal Act for the year. 8. A credit for Employment Insurance premiums and Canada Pension Plan contributions if the individual is entitled to a deduction under section 118.7 of the Federal Act for the year. 9. A pension credit if the individual is entitled to a deduction under subsection 118 (3) of the Federal Act for the year. 9.1 An adoption expense credit if the individual is entitled to a deduction under subsection 118.01 (2) of the Federal Act for the year. 10. A credit in respect of a mental or physical impairment if the individual is entitled to a deduction under subsection 118.3 (1) of the Federal Act for the year. 11. A credit in respect of a disabled dependant if the individual is entitled to a deduction under subsection 118.3 (2) of the Federal Act for the year in respect of the dependant. 12. An amount in respect of unused tuition and education credits if the individual is entitled to a deduction under subsection 118.61 (2) of the Federal Act for the year. 13. A tuition credit if the individual is entitled to a deduction under subsection 118.5 (1) of the Federal Act for the year. 14. An education credit if the individual is entitled to a deduction under subsection 118.6 (2) of the Federal Act for the year. 15. Tuition and education credits transferred to the individual if the individual is entitled to a deduction under section 118.9 of the Federal Act for the year. 16. An amount transferred from a spouse or common-law partner if the individual is entitled to a deduction under section 118.8 of the Federal Act for the year. 17. A medical expense credit if the individual is entitled to a deduction under subsection 118.2 (1) of the Federal Act for the year. 18. A credit for charitable and other gifts if the individual is entitled to a deduction under subsection 118.1 (3) of the Federal Act for the year and deducts an amount under that subsection for the year. 19. A credit for interest on a student loan if the individual is entitled to a deduction  under section 118.62 of the Federal Act for the year. 20.  Repealed:  2006, c. 33, Sched. N, s. 1 (2). 2000, c. 42, s. 50 (3); 2004, c. 16, s. 3; 2006, c. 33, Sched. N, s. 1 (1, 2); 2008, c. 7, Sched. I, s. 1. Rules (3.2) The following rules apply in determining the amount, if any, deductible by an individual under subsection (3.1) for a taxation year: 1. In calculating the total amount an individual may deduct under subsection (3.1), the individual shall deduct the credits to which he or she is entitled in the order in which the credits are listed in that subsection. 2. The total amount of the tax credits an individual may deduct under subsection (3.1) must not exceed the amount of tax payable by him or her under paragraph 1, 2, 3 or 4 of subsection (3) for the taxation year. 3. No pension credit or adoption expense credit may be deducted by an individual who is subject to tax for the taxation year by reason that he or she is an individual described in clause 2 (b). 4. Subsections 118 (4) to (6) and 118.3 (3) of the Federal Act apply with necessary modifications for the purposes of subsection (3.1). 5. An individual who becomes bankrupt in a calendar year is entitled to deduct only the credits described in the following subparagraphs in computing his or her tax payable for a taxation year that ends in the calendar year: i. the credits the individual otherwise would be entitled to deduct under paragraphs 8, 9, 9.1, 13, 14, 17, 18 and 19 of subsection (3.1) for the taxation year that reasonably can be considered wholly applicable to the taxation year, and ii. the part of the credits the individual otherwise would be entitled to deduct under paragraphs 1 to 7, 10, 11, 15 and 16 of subsection (3.1) for the taxation year that reasonably can be considered applicable to the taxation year. 6. The total of all credits deductible under paragraph 5 for all taxation years of an individual ending in a calendar year must not exceed the total amount that would have been deductible for the calendar year if the individual had not been bankrupt. 7. An individual who is resident in Canada only part of a taxation year is entitled to deduct only the following credits for the taxation year: i. the credits the individual otherwise would be entitled to deduct under paragraphs paragraphs 8, 9, 9.1, 13, 14, 17, 18 and 19 of subsection (3.1) for the taxation year that reasonably can be considered wholly applicable to any period during the year in which the individual was resident in Canada, computed as if that period were the whole taxation year, and ii. the part of any credits the individual otherwise would be entitled to deduct under paragraphs 1 to 7, 10, 11, 15 and 16 of subsection (3.1) for the taxation year that reasonably can be considered applicable to any period in the year in which the individual was resident in Canada, computed as though the period were the whole taxation year. 8. The total of all amounts deductible under paragraph 7 for the taxation year shall not exceed the total amount that would have been deductible for the taxation year if the individual had been resident in Canada throughout the year. 9. An individual who is not resident in Canada at any time in the taxation year is not entitled to deduct a credit under any of paragraphs 1 to 7, 9, 9.1, 10, 11, 14, 15, 16 and 17 of subsection (3.1) for the taxation year unless all or substantially all of the individual’s income for the year is included in computing his or her taxable income earned in Canada for the year for the purposes of the Federal Act. 10. If a separate return of income with respect to an individual is filed under subsection 70 (2), 104 (23) or 150 (4) of the Federal Act, as it applies for the purposes of this Act, for a particular period and another return of income with respect to the individual is filed under this Act for a period ending in the calendar year in which the particular period ends, the total of all credits under paragraphs 8, 9, 9.1, 10, 11, 12, 13, 14, 15, 17, 18 and 19 of subsection (3.1) claimed in the returns must not exceed the total that could be deducted under those paragraphs for the year with respect to the individual if no separate returns were filed. 11. No amount may be deducted under subsection (3.1), other than a credit under paragraph 18 of that subsection, in determining the amount of tax payable by a trust. 12. For the purposes of determining the amounts of unused credits that may be transferred for a taxation year ending after December 31, 2000 by a dependant, spouse or common-law partner who is resident in a province other than Ontario on the last day of the taxation year to an individual who is resident in Ontario on the last day of the taxation year, the individual may deduct the amount that the individual would be entitled to deduct under this Act if the dependant, spouse or common-law partner were resident in Ontario on the last day of the taxation year.  2000, c. 42, s. 50 (3); 2001, c. 23, s. 128 (3); 2004, c. 16, s. 3; 2006, c. 33, Sched. N, s. 1 (3-6). Minimum tax carry-forward (3.3) In determining the amount of tax payable for a taxation year ending after December 31, 1999, an individual may deduct an amount not exceeding the lesser of, (a) the amount of tax payable for the year under paragraph 1, 2, 3 or 4 of subsection (3), less all amounts deductible for the year under subsections (3.1), (3.4), (3.4.1), (3.5), (3.5.1) and (4.1); and (b) the amount calculated for the year under subsection (3.3.1).  2000, c. 42, s. 50 (4); 2001, c. 23, s. 128 (4); 2004, c. 16, s. 3. Calculation (3.3.1) For the purposes of clause (3.3) (b), the amount is calculated using the formula, A + B + C – D in which, “A” is the amount equal to 37.5 per cent of the amount, if any, deducted by the individual under section 120.2 of the Federal Act for the taxation year in respect of a prior taxation year that ends before January 1, 2000 and is one of the seven preceding taxation years, “B” is the total of all amounts each of which is the amount added under section 4.4 to the individual’s tax otherwise payable for a prior taxation year that ends after December 31, 1999 and is one of the seven preceding taxation years, “C” is the amount equal to 37.5 per cent of that portion, if any, of the amount deducted by the individual under section 120.2 of the Federal Act for the taxation year that is in respect of a prior taxation year, to the extent it has not been included in determining the amount of “B” for a taxation year if, (a) that prior taxation year ends after December 31, 1999 and is one of the seven preceding taxation years, and (b) the individual was not resident in Ontario at the end of that prior taxation year but was resident at that time in another province, and “D” is the total of all amounts deducted under this subsection in a prior taxation year that are included in the calculation of “A”, “B” or “C”. 2000, c. 42, s. 50 (4); 2001, c. 23, s. 128 (5); 2004, c. 16, s. 3. Minimum tax carry-forward, after 2000 (3.3.2) No amount may be deducted by an individual under subsection (3.3) for a taxation year ending after December 31, 2000 if the individual is required to pay an amount under section 4.4 for the taxation year.  2001, c. 23, s. 128 (6); 2004, c. 16, s. 3. Additional deduction (3.3.3) In determining the amounts for a taxation year of “A” and “C” in the formula in subsection (3.3.1), the individual may include an additional amount equal to 37.5 per cent of the amount deducted by the individual under section 120.2 of the Federal Act for a prior taxation year if, (a) the amount was not included by the individual in determining the amount of a deduction under subsection (3.3) for another taxation year because, (i) the amount determined under clause (3.3) (a) for that other taxation year was less than the amount determined under clause (3.3) (b) for that year, or (ii) the individual elected not to include the amount for that year; (b) no additional amount in respect of the amount has been included under this subsection in the amounts of “A” and “C” in the formula in subsection (3.3.1) for a prior taxation year; (c) the amount of “A” or “C” in the formula in subsection (3.3.1) was in respect of one of the seven preceding taxation years; (d) each of the deductions for a prior taxation year under section 120.2 of the Federal Act that is referred to in the definitions of “A” and “C” in the formula in subsection (3.3.1) was multiplied by the ratio of the individual’s income earned in that prior taxation year in Ontario to the amount of the individual’s income for that year; and (e)   the additional amount to be included under this subsection in the amount of “A” and “C” in the formula in subsection (3.3.1) is not included in determining the amount of “T” in the formula in subsection (4).  2001, c. 23, s. 128 (6); 2004, c. 16, s. 3. Same (3.3.4) In the determining the amount for a taxation year of “B” in the formula in subsection (3.3.1), the individual may include an additional amount equal to the deduction for income earned outside Ontario determined under subsection (4) that is in respect of “B” in the formula in subsection (3.3.1) for a prior taxation year if, (a) the amount was not included by the individual in determining the amount of a deduction under subsection (3.3) for another taxation year; (b) no additional amount in respect of the amount has been included under this subsection in the amount of “B” in the formula in subsection (3.3.1) for a prior taxation year; (c) the amount of “B” in the formula in subsection (3.3.1), before the application of this subsection, was determined in any of the seven preceding taxation years; and (d) the additional amount to be included under this subsection in the amount of “B” in the formula in subsection (3.3.1) is not included in determining the amount of “T” in the formula in subsection (4).  2001, c. 23, s. 128 (6); 2004, c. 16, s. 3. Dividend tax credit (3.4) In determining the amount of tax payable for a taxation year ending after December 31, 1999 and before January 1, 2001, an individual who is resident in Ontario on the last day of the taxation year may deduct an amount equal to the lesser of, (a) the prescribed percentage of the amount, if any, that is required by paragraph 82 (1) (b) of the Federal Act to be included in his or her income for the year or, if no percentage is prescribed, the amount equal to 25.67 per cent of the amount, if any, that is required by that paragraph of the Federal Act to be included in his or her income for the year; and (b) the amount of tax payable by the individual for the year under paragraph 1, 2, 3 or 4 of subsection (3), less all amounts deductible for the year under subsection (3.1).  2000, c. 42, s. 50 (4); 2001, c. 8, s. 36 (2); 2004, c. 16, s. 3. Dividend tax credit, 2001 to 2005 (3.4.1) In determining the amount of tax payable for a taxation year ending after December 31, 2000 and before January 1, 2006, an individual who is resident in Ontario on the last day of the taxation year may deduct an amount equal to the lesser of, (a) the amount of tax payable by the individual for the taxation year under paragraph 1, 2, 3 or 4 of subsection (3), less all amounts deductible for the year under subsection (3.1); and (b) the amount, if any, calculated using the formula, A/B × D in which, “A” is the highest tax rate for the year, “B” is the highest percentage referred to in subsection 117 (2) of the Federal Act that applies in determining the amount of tax payable under Part I of that Act for the year, and “D” is the amount, if any, that is deductible by the individual for the year under section 121 of the Federal Act. 2001, c. 8, s. 36 (3); 2004, c. 16, s. 3; 2006, c. 33, Sched. N, s. 1 (7). Dividend tax credit, 2006 and later years (3.4.2) In determining the amount of tax payable for a taxation year ending after December 31, 2005, an individual who is resident in Ontario on the last day of the year may deduct an amount equal to the lesser of, (a) the amount of tax payable by the individual for the taxation year under paragraph 1, 2, 3 or 4 of subsection (3), less all amounts deductible for the year under subsection (3.1); and (b) the sum of, (i) 38.4828 per cent of the amount determined in respect of the individual for the year under paragraph 121 (a) of the Federal Act, and (ii) the specified percentage of the amount determined in respect of the individual for the year under paragraph 121 (b) of the Federal Act.  2006, c. 33, Sched. N, s. 1 (8). Specified percentage (3.4.3) For the purposes of subclause (3.4.2) (b) (ii), the specified percentage is, (a) 34.2727 per cent for a taxation year ending in 2006; (b) 35.3273 per cent for a taxation year ending in 2007; (c) 36.9091 per cent for a taxation year ending in 2008; (d) 39.0182 per cent for a taxation year ending in 2009; and (e) 40.6 per cent for a taxation year ending after 2009.  2006, c. 33, Sched. N, s. 1 (8). Overseas employment tax credit (3.5) In determining the amount of tax payable for a taxation year ending after December 31, 1999 and before January 1, 2001, an individual who is resident in Ontario on the last day of the taxation year may deduct an amount equal to the prescribed percentage of the amount, if any, that is deductible by the individual for the year under section 122.3 of the Federal Act or, if no percentage is prescribed, the amount equal to 38.5 per cent of the amount, if any, that is deductible by the individual for the year under that section of the Federal Act.  2000, c. 10, s. 13 (3); 2001, c. 8, s. 36 (4); 2004, c. 16, s. 3. Overseas employment tax credit, after 2000 (3.5.1) In determining the amount of tax payable for a taxation year ending after December 31, 2000, an individual who is resident in Ontario on the last day of the taxation year may deduct an amount equal to the amount calculated using the formula, A/B × P in which, “A” is the highest tax rate for the year, “B” is the highest percentage referred to in subsection 117 (2) of the Federal Act that applies in determining the amount of tax payable under Part I of that Act for the year, and “P” is the amount, if any, that is deductible by the individual for the year under section 122.3 of the Federal Act. 2001, c. 8, s. 36 (5); 2004, c. 16, s. 3. Deduction for income earned outside Ontario (4) There may be deducted from the amount of tax otherwise payable by an individual for a taxation year ending after December 31, 1999 an amount calculated using the formula, T × A/B in which, “A” is the amount of the individual’s income earned in the taxation year outside Ontario, “B” is the amount of the individual’s income for the year, and “T” is the amount of tax that would be payable under this section by the individual for the taxation year, calculated without reference to subsections (6) to (9.1). 2000, c. 10, s. 13 (3); 2004, c. 16, s. 3. Additional deduction (4.1) In addition to the amount that may be deducted under subsection (4), there may be deducted from the amount of tax otherwise payable by an individual for a taxation year ending after December 31, 1999 an amount calculated using the formula, G × H/I in which, “G” is the total of all amounts the individual is entitled to deduct and deducts under this section as a pension credit, dividend tax credit or overseas employment tax credit for the taxation year, “H” is the amount of the individual’s income earned in the taxation year outside Ontario, and “I” is the amount of the individual’s income for the year. 2000, c. 42, s. 50 (5); 2004, c. 16, s. 3. Idem (5) For the purposes of this section, the percentage of the tax payable under the Federal Act to be used for computing the tax payable under this section is, (a) 16 per cent in respect of the 1962 taxation year; (b) 17 per cent in respect of the 1963 taxation year; (c) 18 per cent in respect of the 1964 taxation year; (d) 21 per cent in respect of the 1965 taxation year; (e) 24 per cent in respect of the 1966 taxation year; (f) 28 per cent in respect of the 1967, 1968, 1969 and 1970 taxation years; (g) 27.5 per cent in respect of the 1971 taxation year; (h) 30.5 per cent in respect of the 1972, 1973, 1974, 1975 and 1976 taxation years; (i) 44 per cent in respect of the 1977, 1978, 1979 and 1980 taxation years; (j) 46 per cent in respect of the 1981 taxation year; (k) 48 per cent in respect of the 1982, 1983, 1984 and 1985 taxation years; (l) 50 per cent in respect of the 1986 and 1987 taxation years; (m) 51 per cent in respect of the 1988 taxation year; (n) 52 per cent in respect of the 1989 taxation year; (o) 53 per cent in respect of the 1990 and 1991 taxation years; (p) 54.5 per cent in respect of the 1992 taxation year; (q) 58 per cent in respect of the 1993, 1994 and 1995 taxation years; (r) 56 per cent in respect of the 1996 taxation year; (s) 48 per cent in respect of the 1997 taxation year; (t) 42.75 per cent in respect of the 1998 taxation year; (u) 39.5 per cent in respect of the 1999 taxation year. (v)  Repealed:  2000, c. 10, s. 13 (4). R.S.O. 1990, c. I.2, s. 4 (5); 1992, c. 25, s. 2; 1993, c. 29, s. 4; 1996, c. 18, s. 2; 1997, c. 10, s. 2; 1998, c. 5, s. 2; 1999, c. 9, s. 117 (3); 2000, c. 10, s. 13 (4); 2004, c. 16, s. 3. Foreign tax credit (6) An individual who was resident in Ontario on the last day of a taxation year and who had income for the year that included income earned in a country other than Canada in respect of which an amount of non-business-income tax was paid by the individual to the government of that country for the year, may deduct in computing the individual’s tax payable under this Act for the year, a foreign tax credit equal to the lesser of “A” and “B” where, “A” is the amount, if any, by which the non-business-income tax paid by the individual for the year to the government of each country other than Canada exceeds the sum of, (a) all amounts, if any, deductible by the individual from tax under the Federal Act for the year under subsection 126 (1), (2.2), (2.21) or (2.22) of that Act, and (b) the amount of the individual’s special foreign tax credit for the year as determined under subsection 127.54 (2) of the Federal Act, and “B” is the amount, if any, determined by multiplying the tax otherwise payable by the individual for the taxation year by the ratio of “C” to “D” where, “C” is the total amount, if any, determined in respect of the individual for the year under subparagraph 126 (1) (b) (i) of the Federal Act, and “D” is the amount, if any, by which “E” exceeds “F” where, “E” is, (a)  if section 114 of the Federal Act is not applicable to the individual for the year, the individual’s income earned in Ontario for the year, or (b)  if section 114 of the Federal Act is applicable to the individual for the year, the amount that would be the individual’s income earned in Ontario for the year if the amount determined under the Federal Act were equal to the individual’s income determined under paragraph 114 (a) of the Federal Act, and “F” is the amount, if any, determined under subclause 126 (1) (b) (ii) (A) (III) of the Federal Act in respect of the individual for the taxation year.  2006, c. 33, Sched. N, s. 1 (9). Rules re foreign tax credit (7) The following rules apply in respect of an individual’s foreign tax credit for a taxation year: 1. Subsection 126 (6) of the Federal Act and the definition of “non-business-income tax” in subsection 126 (7) of the Federal Act apply for the purposes of subsection (6). 2. For the purposes of subsection (6), the expressions “tax payable” and “tax otherwise payable” by an individual for a taxation year mean the amount of tax payable under this Act, other than the Ontario Health Premium, by the individual for the taxation year before deducting all amounts, if any, deductible by the individual for the year under subsection 4 (3.4), (3.5) or (6) or section 8.  2006, c. 33, Sched. N, s. 1 (9). Mutual fund trust capital gains refund (8) A mutual fund trust that is entitled to a refund under section 132 of the Federal Act for a taxation year is entitled to receive a capital gains refund for the taxation year calculated as follows, and to receive it at the time and in the manner provided in section 132 of the Federal Act for the refund in that section: 1. If the mutual fund trust has no income earned in the taxation year outside Ontario and if the taxation year ends before January 1, 2000, the capital gains refund for the year is the amount calculated using the formula, F × P in which, “F” is the amount of the trust’s refund for the year under section 132 of the Federal Act, and “P” is the percentage referred to in subsection (5) that is used in computing tax payable for the year. 2. If the mutual fund trust has income earned in the taxation year outside Ontario and if the taxation year ends before January 1, 2000, the capital gains refund for the year is the amount calculated using the formula, F × R in which, “F” is its Ontario allocation factor for the year, and “R” is the amount that would have been its capital gains refund for the year if all of its income had been earned in the taxation year in Ontario. 3. If the mutual fund trust’s taxation year ends after December 31, 1999, the capital gains refund for the year is the lesser of, i. its Ontario refundable capital gains tax on hand at the end of the taxation year, and ii. the amount calculated using the formula, F × G × R in which, “F” is its Ontario allocation factor for the year, “G” is its capital gains redemptions for the year for the purposes of section 132 of the Federal Act, and “R” is the prescribed percentage of the highest tax rate for the taxation year or, if no percentage is prescribed, 75 per cent of the highest tax rate for the taxation year. 2000, c. 10, s. 13 (6); 2004, c. 16, s. 3. Additional refund (9) A mutual fund trust that is entitled to a capital gains refund for a taxation year under subsection (8) and that has paid or is liable for payment of an amount under section 3 for the taxation year is entitled to receive an additional refund for the taxation year equal to the lesser of, (a) the amount paid or payable by the mutual fund trust under section 3 for the taxation year; and (b) the amount determined by multiplying the mutual fund trust’s capital gains refund for the taxation year calculated under subsection (8) by the percentage referred to in section 3 used in the determination of the amount paid or payable by the mutual fund trust under that section for the taxation year.  R.S.O. 1990, c. I.2, s. 4 (9); 2004, c. 16, s. 3. Same (9.1) If a mutual fund trust’s refund for a taxation year under section 132 of the Federal Act is equal to the amount of its federal refundable capital gains tax on hand at the end of that year, the trust is entitled to receive an additional refund for the taxation year in the amount, if any, calculated using the formula, (A + B + C) – (D + E) in which, “A” is the total of all amounts each of which is an amount in respect of a prior taxation year ending after 1995 and before 2000 that is calculated under subsection (9.2), “B” is the total of all amounts each of which is the amount of the trust’s Ontario refundable capital gains tax on hand at the end of each taxation year ending after 1999, “C” is the total of all amounts, each of which is the amount that would be the trust’s surcharge under section 3 for a taxation year ending after 1995, if the amount of “A” or “B”, whichever applies for the year, were its gross tax amount determined under subsection 3 (2) for the year, “D” is the total of all amounts previously refunded to the trust under this subsection, and “E” is the total of all amounts refunded to the trust under subsections (8) and (9) in respect of taxation years ending after 1995. 2000, c. 10, s. 13 (7); 2004, c. 16, s. 3. Same (9.2) Each amount in respect of a prior taxation year that is to be included in “A” in subsection (9.1) is calculated using the formula, F × P × X in which, “F” is the trust’s Ontario allocation factor for the prior year, “P” is the percentage referred to in subsection (5) used in computing the tax payable under this section by the trust for the prior year, and “X” is the amount added to the trust’s federal refundable capital gains tax on hand at the end of the prior year. 2000, c. 10, s. 13 (7); 2004, c. 16, s. 3. Application of refund (10) Where a mutual fund trust is entitled to receive a refund under subsection (8) and is liable or is about to become liable to make any payment under this Act, the Minister may apply all or part of the amount that would otherwise be refunded under subsection (8), and under subsections (9) and (9.1) if applicable, to the liability and pay to the mutual fund trust the balance, if any, of the refund not so applied, and shall notify the mutual fund trust of the application of the amount of the refund not paid to the mutual fund trust.  R.S.O. 1990, c. I.2, s. 4 (10); 1999, c. 9, s. 117 (6); 2004, c. 16, s. 3. Section Amendments with date in force (d/m/y) 1992, c. 25, s. 2 - 1/01/1992; 1996, c. 1, Sched. C, s. 4 - 23/02/1994; 1996, c. 18, s. 2 - 1/01/1996; 1996, c. 24, s. 12 - 1/03/1994; 1997, c. 10, s. 2 - 1/01/1997; 1998, c. 5, s. 2 - 1/01/1998; 1999, c. 9, s. 117 (1, 2) - 1/01/1998 1999, c. 9, s. 117 (3, 5, 6, 7) - 1/01/1999; 1999, c. 9, s. 117 (4) - 14/12/1999 2000, c. 10, s. 13 (1-7)
- 1/01/2000; 2000, c. 42, s. 50 (1-5)
- 1/01/2000 2001, c. 8, s. 36 (2-5)
- 1/01/2001; 2001, c. 23, s. 128 (1-4, 6) - 1/01/2001; 2001, c. 23, s. 128 (5)
- 1/01/2000; 2001, c. 23, s. 128 (7)
- 1/01/1996 2002, c. 22, s. 105 (1, 2) - 9/12/2002 2003, c. 7, s. 10 (1, 2)
- 1/01/2004 2004, c. 16, s. 3
- 1/01/2004; 2004, c. 29, s. 5 (1, 2)
- 1/01/2004 2005, c. 31, Sched. 11, s. 2 (1) - no effect - see 2006, c. 33, Sched. N, s. 1 (2) - 1/01/2005; 2005, c. 31, Sched. 11, s. 2 (2, 3) - no effect - see 2006, c. 33, Sched. N, s. 1 (6) - 1/01/2005 2006, c. 33, Sched. N, s. 1 (1-6) - 1/01/2005; 2006, c. 33, Sched. N, s. 1 (7-9) - 1/01/2006 2008, c. 7, Sched. I, s. 1 - 14/05/2008