8.7 (1) An individual other than a trust shall be deemed to have made an overpayment on account of tax payable under this Act for a taxation year ending before January 1, 2010 in the amount of his or her Ontario research employee stock option tax overpayment, if any, for the year if the following conditions are satisfied: 1. The individual is deemed to receive a benefit under section 7 of the Federal Act in the taxation year in respect of an eligible stock option agreement or has realized a capital gain on the sale of shares acquired on the exercise of rights under an eligible stock option agreement. 2. The individual is resident in Ontario on December 31 of the calendar year in which the taxation year ends, or on the day in that calendar year the individual dies if he or she dies in that year. 3. The individual was resident in Ontario on December 31 of the calendar year in which the eligible stock option agreement was entered into. 4. The individual is not an ineligible individual in respect of the eligible stock option agreement. 5. The individual deducted an amount under paragraph 110 (1) (d), (d.01) or (d.1) of the Federal Act in respect of a benefit relating to the eligible stock option agreement in computing his or her income for the taxation year or a prior taxation year. 6. The individual has filed a return of income under this Act and the Federal Act for the taxation year. 7. The individual is an eligible employee of an eligible employer at the time the eligible employer or a corporation not dealing at arm’s length with the eligible employer enters into the eligible stock option agreement.  2000, c. 42, s. 58; 2001, c. 23, s. 134 (1); 2004, c. 16, s. 3; 2004, c. 31, Sched. 19, s. 12 (1). Amount (2) The amount of an individual’s Ontario research employee stock option tax overpayment for a taxation year is the amount by which “A” exceeds “B” where, “A” is the amount of tax payable under this Act by the individual for the taxation year before any refund under this section or tax incentive under section 8.9, and “B” is the individual’s adjusted tax amount for the taxation year.  2000, c. 42, s. 58; 2004, c. 16, s. 3; 2004, c. 31, Sched. 19, s. 12 (2). Ineligible individual (3) An individual is an ineligible individual in respect of an eligible stock option agreement if, (a) the individual is a specified shareholder of the eligible employer or the corporation that entered into the agreement or of a corporation that is associated with the eligible employer at any time in the taxation year of the eligible employer in which the agreement is entered into or at any time in its five previous taxation years; or (b) the individual would be a specified shareholder referred to in clause (a) if the individual were to own every share of the capital stock of the eligible employer or the corporation, as the case may be, that the individual, or a person with whom the individual did not deal at arm’s length, had a right at that time to acquire under a contract, either immediately or in the future and either absolutely or contingently.  2000, c. 42, s. 58; 2004, c. 16, s. 3. Adjusted tax amount (4) An individual’s adjusted tax amount for a taxation year is the amount of tax that would be payable by the individual under this Act for the year if the individual’s taxable income for the year were equal to the individual’s adjusted taxable income under this section.  2000, c. 42, s. 58; 2004, c. 16, s. 3. Adjusted taxable income (5) An individual’s adjusted taxable income for a taxation year is the amount determined by deducting from the individual’s taxable income for the year the amount that is the lesser of, (a) $100,000; and (b) the sum of all amounts each of which is, (i) the individual’s benefit under section 7 of the Federal Act for the taxation year in respect of an eligible stock option agreement, less any deduction claimed under paragraph 110 (1) (d), (d.01) or (d.1) of that Act in respect of the benefit in computing the individual’s taxable income for the taxation year, or (ii) the lesser of the individual’s taxable capital gain for the taxation year from the disposition of shares of a corporation acquired by the individual on the exercise of rights under an eligible stock option agreement and the amount calculated under subsection (6) in respect of the individual for the taxation year.  2000, c. 42, s. 58; 2001, c. 23, s. 134 (2); 2004, c. 16, s. 3. Calculate amount (6) For the purposes of subclause (5) (b) (ii), the amount is calculated using the formula, A – (B + C + D) in which, “A” is the net taxable capital gain included in computing the individual’s income for the taxation year under paragraph 3 (b) of the Federal Act, “B” is the allowable business investment loss, if any, deducted in computing the individual’s income for the taxation year, “C” is the net capital loss, if any, deducted in computing the individual’s taxable income for the taxation year, and “D” is the amount, if any, deducted in computing the individual’s taxable income for the taxation year under subsection 110.6 (2.1) of the Federal Act. 2000, c. 42, s. 58; 2004, c. 16, s. 3. Eligible employee (7) For the purposes of this section, an individual is an eligible employee at the time the stock option agreement in respect of the individual is entered into if the following conditions are satisfied: 1. The individual is a full-time or permanent part-time employee of an eligible employer during the taxation year of the employer in which the employer or a corporation not dealing at arm’s length with it enters into the stock option agreement. 2. The individual is employed by the eligible employer for a period of at least 6 consecutive months and the period of employment includes at least part of that taxation year. 3. The individual is not an incorporated employee providing services on behalf of a personal services business, within the meaning of subsection 125 (7) of the Federal Act, at any time in that taxation year or in any of the eligible employer’s five previous taxation years to, i. the eligible employer, ii. the corporation that entered into the agreement, iii. a corporation associated with the eligible employer, or iv. a partnership of which the eligible employer, the corporation that entered into the agreement or a corporation associated with the eligible employer is a member. 4. The individual’s R & D work time percentage or R & D wage percentage is at least 30 per cent for that taxation year.  2000, c. 42, s. 58; 2004, c. 16, s. 3. R & D work time percentage (8) An individual’s R & D work time percentage for an eligible employer’s taxation year is the percentage calculated using the formula, E/F × 100% in which, “E” is the number of hours during the taxation year in which the individual provided employment services by directly undertaking or supervising in Ontario the prosecution of scientific research and experimental development if, (a) the salary or wages for the employment services are expenditures directly attributable to the prosecution of scientific research and experimental development under paragraph 2900 (2) (b) of the Federal Regulations, and (b) the employment services are provided to the employer, a corporation associated with the employer or a partnership of which the employer or a corporation associated with the employer is a partner, and “F” is the total number of hours in the taxation year in which the individual provided employment services to the employer, a corporation associated with the employer or a partnership of which the employer, or a corporation associated with the employer, is a partner. 2000, c. 42, s. 58; 2004, c. 16, s. 3. R & D wage percentage (9) An individual’s R & D wage percentage for an eligible employer’s taxation year is the percentage calculated using the formula, E/F × 100% in which, “E” is the individual’s total salary or wages for the employer’s taxation year for providing employment services by directly undertaking or supervising in Ontario the prosecution of scientific research and experimental development if, (a) the salary or wages for the employment services are expenditures directly attributable to the prosecution of scientific research and experimental development under paragraph 2900 (2) (b) of the Federal Regulations, and (b) the employment services are provided to the employer, a corporation associated with the employer or a partnership of which the employer or a corporation associated with the employer is a partner, and “F” is the individual’s total salary or wages for the employer’s taxation year for providing employment services to the employer, a corporation associated with the employer or a partnership of which the employer, or a corporation associated with the employer, is a partner. 2000, c. 42, s. 58; 2004, c. 16, s. 3. Eligible employer (10) For the purposes of this section, an employer is an eligible employer at the time a stock option agreement is entered into by the employer or by a corporation not dealing at arm’s length with the employer if the following conditions are satisfied: 1. The employer is a corporation. 2. Throughout the taxation year of the employer in which the stock option agreement is entered into, the employer carries on business through a permanent establishment in Ontario, either directly or as a member of a partnership. 3. In the taxation year before the year in which the stock option agreement is entered into, the employer undertakes scientific research and experimental development at a permanent establishment in Ontario, either directly or as a member of a partnership that directly undertakes the research and development. 4. The employer’s eligible expenditures for the taxation year before the year in which the stock option agreement is entered are not less than $25 million or 10 per cent of the employer’s total revenue for that taxation year, whichever is less.  2000, c. 42, s. 58; 2004, c. 16, s. 3. Research by associated corporation (11) For the purposes of paragraph 3 of subsection (10), scientific research and experimental development directly undertaken by a person at a permanent establishment in Ontario during a taxation year of the employer shall be deemed to be directly undertaken by the employer if, (a) the person is a corporation associated throughout the taxation year with the employer; and (b) the person undertakes the research and development directly or as a member of a partnership that directly undertakes the research and development.  2000, c. 42, s. 58; 2004, c. 16, s. 3. Eligible expenditures (12) Subject to subsection (16), an eligible employer’s eligible expenditures for a taxation year include, (a) the employer’s proportionate share of any expenditures incurred by a partnership of which it is a member during a fiscal period of the partnership that ends in the particular taxation year that would be eligible expenditures if incurred by a corporation; and (b) eligible expenditures incurred by each corporation that is associated with the employer throughout the taxation year and that has a permanent establishment in Canada for any taxation year of the associated corporation that ends in the taxation year, including the associated corporation’s proportionate share of any expenditures incurred by a partnership of which it is a member during a fiscal period of the partnership that ends in the associated corporation’s taxation year that would be eligible expenditures if incurred by a corporation.  2000, c. 42, s. 58; 2004, c. 16, s. 3. Total revenue (13) Subject to subsection (16), the total revenue of an eligible employer for a taxation year includes, (a) the employer’s proportionate share of the total revenue of a partnership of which it is a member during a fiscal period of the partnership that ends in the taxation year; and (b) the total revenue of each corporation that is associated with the employer throughout the taxation year and that has a permanent establishment in Canada for any taxation year of the associated corporation that ends in the taxation year, including the associated corporation’s share of the total revenue of any partnership of which it is a member for a fiscal period ending in the associated corporation’s taxation year.  2000, c. 42, s. 58; 2004, c. 16, s. 3. Partner (14) A partner’s proportionate share of an amount in respect of the partnership for a fiscal period is, (a) nil if the partner is a specified member of the partnership at any time in the fiscal period; or (b) the amount determined by multiplying the amount by the ratio of the partner’s share of the income or loss of the partnership for that fiscal period  to the total income or loss of the partnership for that fiscal period, in any other case.  2000, c. 42, s. 58; 2004, c. 16, s. 3. Exception, short taxation year (14.1) If an employer or a corporation not dealing at arm’s length with an employer enters into a stock option agreement after December 21, 2000 and before May 18, 2004, the condition described in paragraph 4 of subsection (10) shall be deemed to be satisfied for the taxation year before the year in which the stock option agreement is entered into (the “preceding taxation year”) if the conditions described in paragraphs 1 and 2 of subsection (14.2) are satisfied and, (a) if the conditions described in paragraphs 3 and 4 of subsection (14.2) are satisfied; (b) if the condition described in paragraph 5 of subsection (14.2) is satisfied; or (c) if the conditions described in paragraphs 3, 4 and 5 of subsection (14.2) are satisfied.  2002, c. 22, s. 111; 2004, c. 16, s. 3; 2004, c. 31, Sched. 19, s. 12 (3). Same (14.2) The following are the conditions referred to in subsection (14.1): 1. The preceding taxation year is less than 51 weeks in duration. 2. The employer’s eligible expenditures for the taxation year that precedes the preceding taxation year are not less than $25 million or 10 per cent of the employer’s total revenue for that taxation year, whichever is less. 3. The employer is associated with one or more other corporations (each referred to as an associated corporation) throughout the preceding taxation year. Each associated corporation has a permanent establishment in Canada throughout the preceding taxation year. 4. The eligible expenditures of an associated corporation are not included in the eligible expenditures of the employer for the preceding taxation year because the taxation year of the associated corporation did not end in the preceding taxation year. 5. If the employer or an associated corporation is a member of a partnership in the preceding taxation year and if the partnership carried on business in Canada throughout the preceding taxation year, expenditures of the partnership that would be eligible expenditures if they had been incurred by a corporation are not included in the eligible expenditures of the employer for the preceding taxation year because the fiscal period of the partnership did not end in the preceding taxation year.  2002, c. 22, s. 111; 2004, c. 16, s. 3. Start-ups (15) For the purposes of subsection (10), if the taxation year in which the stock option agreement is entered into is the first taxation year of the employer after it was incorporated or is the first taxation year in which it carries on business, references to the taxation year before that year are read as references to that year.  2000, c. 42, s. 58; 2004, c. 16, s. 3. First taxation year, amalgamated corporation (15.1) For the purposes of subsection (10), if the taxation year in which the stock option agreement is entered into is the first taxation year of an employer ending after an amalgamation to which section 87 of the Federal Act applies, references to the taxation year before that year are read as references to the taxation year of each of the predecessor corporations, as referred to in section 87 of the Federal Act, that ended immediately before the amalgamation.  2001, c. 23, s. 134 (3); 2004, c. 16, s. 3. Short or multiple taxation years (16) In determining the amount of eligible expenditures and total revenue for a taxation year for the purposes of this section, the following rules apply: 1. If the taxation year is less than 51 weeks and is the only taxation year ending in a calendar year, the eligible expenditures and total revenue for the taxation year are the amounts otherwise determined, multiplied by the ratio of 365 to the number of days in the taxation year. 2. If the taxation year is not the only taxation year of the eligible employer ending in the same calendar year, the amount of the employer’s eligible expenditures and total revenue for the taxation year is the total of those amounts for all taxation years ending in that calendar year, as otherwise determined, multiplied by the ratio of 365 to the total number of days in those taxation years. 3. If the taxation year of a corporation that is associated with the eligible employer is less than 51 weeks and is the only taxation year of the associated corporation ending in the employer’s taxation year, the corporation’s eligible expenditures and total revenue for that taxation year are the amounts otherwise determined, multiplied by the ratio of 365 to the number of days in the taxation year. 4. If a fiscal period of a partnership of which the eligible employer or the associated corporation is a member is less than 51 weeks and is the only fiscal period of the partnership ending in the taxation year of the employer or the associated corporation, as the case may be, the eligible expenditures and total revenue of the partnership for that fiscal period are the amounts otherwise determined, multiplied by the ratio of 365 to the number of days in the fiscal period. 5. If a corporation who is associated with the eligible employer has two or more taxation years ending in the employer’s taxation year, the eligible expenditures and  total revenue of the associated corporation for the taxation year ending in the employer’s taxation year are the total of those amounts for all of its taxation years ending in the employer’s taxation year, as otherwise determined, multiplied by the ratio of 365 to the total number of days in all of those taxation years. 6. If a partnership of which the eligible employer or the associated corporation is a member has two or more fiscal periods ending in the taxation year of the employer or the associated corporation, as the case may be, the eligible expenditures and total revenue for the fiscal period of the partnership ending in the taxation year of the employer or the associated corporation, as the case may be, are those amounts for all of its fiscal periods ending in the taxation year, as otherwise determined, multiplied by the ratio of 365 to the total number of days in all of the fiscal periods.  2000, c. 42, s. 58; 2004, c. 16, s. 3. Eligible expenditures (17) Eligible expenditures of an entity for a taxation year or fiscal period for the purposes of this section is the amount calculated using the formula, A + B – C in which, “A” is the total amount of the expenditures incurred by the entity in the taxation year or fiscal period at a permanent establishment in Ontario each of which would be a qualified expenditure under subsection 12 (1) of the Corporations Tax Act and is, (a) an amount described in subparagraph 37 (1) (a) (i) or 37 (1) (b) (i) of the Federal Act, or (b) a prescribed proxy amount of the entity for the taxation year referred to in paragraph (b) of the definition of “qualified expenditures” in subsection 127 (9) of the Federal Act, “B” is the reduction, if any, in the amount of “A” required under subsections 127 (18) to (20) of the Federal Act in respect of a contract payment, and “C” is the total of all amounts each of which is paid or payable by the entity in the taxation year or fiscal period that are included in the amount of “A” and that would be contract payments as defined in subsection 127 (9) of the Federal Act to the recipient of the amount. 2000, c. 42, s. 58; 2004, c. 16, s. 3. Certificate to Provincial Minister (18) The eligible employer shall deliver to the Provincial Minister, in a form and manner satisfactory to the Provincial Minister, on or before the date by which the employer is required by section 75 of the Corporations Tax Act to deliver a return for its taxation year in which an eligible stock option agreement was entered into, (a) a certificate certifying that it is an eligible employer for the taxation year for the purposes of this section and certifying the date it or a corporation not dealing at arm’s length with it entered into the eligible stock option agreement; (b) such information as the Provincial Minister may require to verify that the employer is an eligible employer; and (c) a list containing the names and social insurance numbers of all eligible employees in respect of whom the agreement was entered into.  2000, c. 42, s. 58; 2004, c. 16, s. 3. Certificate to employee (19) The eligible employer shall deliver to every individual who is an eligible employee in relation to an eligible stock option agreement a certificate certifying, (a) that the stock option agreement is an eligible stock option agreement for the purposes of this section; and (b) that the employee is an eligible employee in relation to the agreement for the purposes of this section.  2000, c. 42, s. 58; 2004, c. 16, s. 3. Same (20) The certificate under subsection (19) must be in a form approved by the Provincial Minister and must be delivered in a manner acceptable to the Provincial Minister on or before the day by which the eligible employer is required by section 75 of the Corporations Tax Act to deliver a return for its taxation year in which the eligible stock option agreement was entered into.  2000, c. 42, s. 58; 2004, c. 16, s. 3. Notice of benefit, Provincial Minister (21) The eligible employer in respect of an eligible stock option agreement shall notify the Provincial Minister of the following information during each relevant calendar year: 1. The name, address and social insurance number of each individual, i. who is deemed under section 7 of the Federal Act to receive a benefit in the year other than by reason of an election in a prior taxation year under subsection 7 (8) of the Federal Act in respect of an acquisition under the agreement, or ii. who elects for the year to have subsection 7 (8) of the Federal Act apply in respect of an acquisition under the agreement. 2. The amount of any benefit deemed by section 7 of the Federal Act to be received in the calendar year by each individual referred to in subparagraph 1 i, other than a benefit that is reported as income in the calendar year as a result of an election in a prior taxation year under subsection 7 (8) of the Federal Act. 3. The amount of any benefit that would otherwise have been reported as income in that year by an individual referred to in subparagraph 1 ii if an election under subsection 7 (8) of the Federal Act had not been made. 4. Any valid revocation under subsection 7 (13) of the Federal Act of an election referred to in paragraph 3.  2001, c. 23, s. 134 (4); 2004, c. 16, s. 3. Same (22) The notice under subsection (21) must be in a form approved by the Provincial Minister and must be delivered to the Provincial Minister in a manner acceptable to the Provincial Minister on or before the day by which the eligible employer is required by section 75 of the Corporations Tax Act to deliver a return for its first taxation year ending after the calendar year in which the individual is deemed to have received the benefit.  2000, c. 42, s. 58; 2004, c. 16, s. 3. Notice of benefit, employee (23) The eligible employer shall notify the individual if, (a) a benefit deemed to be received by the individual in a calendar year under section 7 of the Federal Act, other than by reason of an election in a prior taxation year under subsection 7 (8) of that Act, relates to an eligible stock option agreement; and (b) an acquisition made in a calendar year, to which the individual elects to have subsection 7 (8) of the Federal Act apply, relates to an eligible stock option agreement.  2001, c. 23, s. 134 (5); 2004, c. 16, s. 3. Same (24) The notice under subsection (23) must be in a form approved by the Provincial Minister and must be delivered in a manner acceptable to the Provincial Minister on or before the day by which the eligible employer is required by section 75 of the Corporations Tax Act to deliver a return for its first taxation year ending after the calendar year in which the individual is deemed to have received the benefit.  2000, c. 42, s. 58; 2004, c. 16, s. 3. Application by individual (25) An individual who is deemed by this section to have made an overpayment on account of tax payable under this Act for a taxation year in respect of one or more eligible stock option agreements may apply for a refund of the overpayment by filing an application with the Provincial Minister, certifying that he or she satisfies the conditions in subsection (1) and setting out the following information: 1. The year in which each eligible stock option agreement was entered into. 2. The amount of all benefits included in computing his or her income for the taxation year under section 7 of the Federal Act in respect of the eligible stock option agreements. 3. All amounts deducted in computing the individual’s taxable income for the taxation year under paragraph 110 (1) (d), (d.01) or (d.1) of the Federal Act in respect of the benefits. 4. The amount of any taxable capital gains realized by the individual from the disposition of shares acquired through exercising rights under any of the eligible stock option agreements if the taxable capital gains were included in computing the individual’s income for the taxation year. 5. The amount of the net taxable capital gains included in computing the individual’s income for the taxation year. 6. The amount of any allowable business investment loss deducted in computing the individual’s income for the taxation year. 7. The amount of any net capital loss deducted in computing the individual’s taxable income for the taxation year. 8. The amount deducted under subsection 110.6 (2.1) of the Federal Act in computing the individual’s taxable income for the taxation year. 9. The amount of the individual’s taxable income for the taxation year. 10. The amount of tax payable by the individual for the taxation year under this Act, before any refund under this section.  2000, c. 42, s. 58; 2001, c. 23, s. 134 (6); 2004, c. 16, s. 3. Same (26) The application under subsection (25) must be in a form approved by the Provincial Minister and must be delivered on or before September 30th of the second calendar year beginning after the taxation year to which the overpayment relates.  2000, c. 42, s. 58; 2004, c. 16, s. 3. Filing of certificate (27) The individual shall file with the application true copies of all certificates received from eligible employers relating to eligible stock option agreements.  2000, c. 42, s. 58; 2004, c. 16, s. 3. Filing of forms (27.1) The individual shall file with the application such forms as the Provincial Minister may specify to verify that the individual is eligible to a refund under this section and the amount, if any, that the individual is entitled to receive under this section or section 8.8.  2001, c. 23, s. 134 (7); 2004, c. 16, s. 3. Late application (28) The Provincial Minister may accept an application that is not filed on time if, (a) the application is filed no later than two years after the last date by which it is required to be filed under this section; and (b) the Provincial Minister is satisfied that the individual was unable to file the application at an earlier time for reasons beyond his or her control.  2000, c. 42, s. 58; 2004, c. 16, s. 3. Notice of change (29) Every employer and corporation that has filed a certificate or notice with the Provincial Minister under this section shall notify the Provincial Minister in a form and manner satisfactory to the Provincial Minister of any change in the information provided to the Provincial Minister.  2000, c. 42, s. 58; 2004, c. 16, s. 3. Time (30) The notice under subsection (29) must be filed with the Provincial Minister on or before the last day of the second month following the month in which the employer or corporation becomes aware that the information is inaccurate or has changed, whether the inaccuracy or change is a result of a reassessment of tax or is due to another reason.  2000, c. 42, s. 58; 2004, c. 16, s. 3. Restriction (31) No application may be made under this section if the tax payable under this Act is in respect of taxable income reported in a return filed pursuant to an election made under subsection 104 (23) or 150 (4) of the Federal Act, or a return filed under paragraph 128 (2) (e) or (h) of the Federal Act.  2000, c. 42, s. 58; 2004, c. 16, s. 3. Determination by Provincial Minister (32) The Provincial Minister shall determine whether the individual is deemed under this section to have made an overpayment of tax for the taxation year and the amount of his or her Ontario research employee stock option tax overpayment, if any, for the year.  2000, c. 42, s. 58; 2004, c. 16, s. 3. Refund of overpayment (33) After making a determination under subsection (32), the Provincial Minister shall pay a refund to the individual in the amount, if any, of the individual’s Ontario research employee stock option tax overpayment for the year.  2000, c. 42, s. 58; 2004, c. 16, s. 3. Deemed refund of tax (34) For the purposes of section 164 of the Federal Act, as it applies for the purposes of this Act, a refund paid under this section is a refund of tax under this Act.  2000, c. 42, s. 58; 2004, c. 16, s. 3. Interest (35) Despite any other provision of this Act or the Federal Act, interest is payable on the amount of a refund under this section only in accordance with the rules in section 8.8.  2000, c. 42, s. 58; 2004, c. 16, s. 3. Anti-avoidance provision (36) Despite any other provision of this section, the Provincial Minister may disallow an individual’s application under this section unless the individual entered into an employment relationship with the eligible employer for bona fide purposes other than to obtain a tax refund under this section.  2000, c. 42, s. 58; 2004, c. 16, s. 3. Shares held in trust (37) If an individual is entitled to deduct and has deducted an amount under subsection 8 (12) of the Federal Act in computing his or her income for the taxation year in respect of shares issued under an eligible stock option agreement that the individual is deemed to have disposed of under subsection 7 (2) of the Federal Act, the following rules apply: 1. The eligible employer in relation to the eligible stock option agreement shall notify the Provincial Minister in a form and manner satisfactory to the Provincial Minister that the conditions in paragraphs 8 (12) (a) to (d) of  the Federal Act have been satisfied. 2. The individual shall repay to the Provincial Minister all or the portion of all refunds paid to the individual in respect of the eligible stock option agreement that reasonably relate to the shares.  2000, c. 42, s. 58; 2004, c. 16, s. 3. Regulations (38) The Lieutenant Governor in Council may make regulations, (a) prescribing, with or without modifications, provisions of the Federal Act that apply for the purposes of this section and the manner in which they apply; (b) prescribing the ordering of disposition of identical properties for the purposes of determining amounts relevant to calculations under this section; (c) governing the provision of such information as the Provincial Minister may require for the administration of this section; (d) prescribing the method of determining a corporation’s eligible expenditures and total revenue after a purchase or sale of assets used in carrying on its business.  2000, c. 42, s. 58; 2004, c. 16, s. 3. Indemnity (39) No action or other proceeding for damages or otherwise may be instituted against a person for an act done in good faith in the execution or intended execution of a duty or authority under this section or for an alleged neglect or default in the execution in good faith of any such duty or authority under this section.  2000, c. 42, s. 58; 2004, c. 16, s. 3. Non-arm’s length (40) Persons are not dealing at arm’s length for the purposes of this section if they are not dealing at arm’s length for the purposes of the Federal Act.  2000, c. 42, s. 58; 2004, c. 16, s. 3. Definitions (41) In this section, “associated” means, in respect of a corporation and another person, associated within the meaning of subsection 256 (1) of the Federal Act; (“associé”) “eligible stock option agreement” means a stock option agreement, other than a replacement option agreement, (a) that is entered into by an eligible employer, or by a corporation that does not deal at arm’s length with the eligible employer, after December 21, 2000 and before May 18, 2004, (b) that provides for the sale or issue of shares to an individual who is an eligible employee of the eligible employer at the time the stock option agreement is entered into, and (c) that is entered into in the course of or by virtue of the eligible employee’s employment with the eligible employer; (“convention d’option d’achat d’actions admissible”) “permanent establishment” has the meaning, (a) given to that expression by subsection 400 (2) of the Federal Regulations in references to a permanent establishment in Canada, and (b) given to that expression by section 4 of the Corporations Tax Act in references to a permanent establishment in Ontario; (“établissement stable”) “permanent part-time employee” has the meaning assigned to it by subsection 1 (1) of the regulations made under the Employment Equity Act (Canada); (“employé permanent à temps partiel”) “replacement option agreement” means a stock option agreement that is entered into after the day the Balanced Budgets for Brighter Futures Act, 2000 receives Royal Assent if it is reasonable to consider that the purpose of the agreement is to replace a stock option agreement that was entered into on or before that day; (“convention de remplacement”) “stock option agreement” means an agreement pursuant to which a corporation agrees to sell or issue shares of the capital stock of the corporation or of a corporation with which it does not deal at arm's length to an employee of the corporation or of a corporation with which it does not deal at arm’s length; (“convention d’option d’achat d’actions”) “total revenue” means, (a) for a taxation year of a corporation, the amount that would be the corporation’s gross revenue for the taxation year, as determined in accordance with generally accepted accounting principles except that the consolidation and equity methods must not be used, if the gross revenue excluded revenue from transactions with, (i) corporations that are associated with the corporation throughout the taxation year and that have permanent establishments in Canada in the taxation year, or (ii) partnerships of which the corporation or a corporation described in subclause (i) is a member, or (b) for a fiscal period of a partnership of which a corporation is a member, the amount that would be the partnership’s gross revenue for the fiscal period, as determined in accordance with generally accepted accounting principles except that the equity method must not be used, if the gross revenue excluded revenue of the partnership from transactions with, (i) the corporation, or (ii) corporations that are associated with the corporation throughout the taxation year in which the fiscal period ends and that have permanent establishments in Canada in that taxation year. (“revenu total”)  2000, c. 42, s. 58; 2004, c. 16, s. 3; 2004, c. 31, Sched. 19, s. 12 (4). Section Amendments with date in force (d/m/y) 2000, c. 42, s. 58
- 1/02/2002 2001, c. 23, s. 134 (1-7) - 1/02/2002 2002, c. 22, s. 111
- 1/02/2002 2004, c. 16, s. 3
- 1/01/2004; 2004, c. 31, Sched. 19, s. 12 (1, 3, 4) - 18/05/2004; 2004, c. 31, Sched. 19, s. 12 (2) - 27/03/2003