3 (1) For the purposes of this section, a disposition of a beneficial interest in land includes, (a) a sale, transfer or assignment, however effected, of any part of a beneficial interest in land; and (b) any change in entitlement to or any accretion to a beneficial interest in land, but does not include, (c)  Repealed:  1997, c. 10, s. 11. (d) a transfer of a beneficial interest in land which occurs by reason of the death of the owner of the interest, if the transfer is not required to be made under the terms of an agreement enforceable by or against the person legally or beneficially entitled to the interest immediately following the death of the owner; (e) a transfer or assignment of a beneficial interest in land by a debtor to a creditor for the purpose only of providing security for a debt or loan and a transfer or reassignment by the creditor to the debtor of the security; (f) a lease of land or a transfer of the interest of a lessee under a lease of land if, at the time of the disposition, the unexpired term of the lease cannot exceed 50 years, including any renewals or extensions of the term provided for in the lease or in a separate option to lease or other document entered into as part of the arrangement relating to the lease (whether or not the lessee and the optionee or person named in the document are the same persons); or (g) a transfer or assignment of a beneficial interest in land arising on the execution of an agreement of purchase and sale of an interest in the land, or by a subsequent assignment of such beneficial interest by a purchaser under the agreement or by an assignee thereof, where, (i) the value of the consideration specified in the agreement has not been paid to or for the benefit of the transferor, or (ii) the liability for the value of the consideration specified in the agreement has not been assumed by or on behalf of the transferee.  R.S.O. 1990, c. L.6, s. 3 (1); 1994, c. 18, s. 4 (6); 1997, c. 10, s. 11. Tax on disposition of a beneficial interest (2) If there is a disposition of a beneficial interest in land, tax at the rates otherwise determined under section 2 is payable to the Minister on the thirtieth day after the date of the disposition as if the disposition were a conveyance of land tendered for registration.  R.S.O. 1990, c. L.6, s. 3 (2); 1994, c. 18, s. 4 (5). Exception (2.1) Despite subsection (2), the Minister may make regulations prescribing different rules respecting when the tax under subsection (2) is payable. 2017, c. 34, Sched. 23, s. 1. By whom payable (3) The tax under subsection (2) is payable by every person who acquires a beneficial interest in land or whose beneficial interest in land is increased as a result of the disposition.  R.S.O. 1990, c. L.6, s. 3 (3). Multiple interests (4) Subject to subsection (4.1), if more than one person acquires a beneficial interest in land, or more than one person’s beneficial interest in land is increased as a result of the disposition, each of them is liable to pay only that percentage of the tax otherwise payable under this section that reflects their proportional share of the acquisition of or increase in beneficial interest.  R.S.O. 1990, c. L.6, s. 3 (4); 2017, c. 17, Sched. 1, s. 4 (1). Exception, joint and several liability for tax under subs. 2 (2.1) (4.1) If more than one person acquires a beneficial interest in land, or more than one person’s beneficial interest in land is increased as a result of the disposition, each of them is jointly and severally liable to pay the amount of tax imposed under subsection (2) that was determined at the rate under subsection 2 (2.1). 2017, c. 17, Sched. 1, s. 4 (2). Exceptions (5) No tax is payable by virtue of this section if, (a) an instrument evidencing the disposition of the beneficial interest in land is tendered for registration within 30 days after the date of the disposition and the tax payable under section 2 on the registration of the instrument has been paid; or (a.1)  Repealed:  2004, c. 31, Sched. 21, s. 5 (2). (b) the disposition of the beneficial interest in land is prescribed as being exempt.  R.S.O. 1990, c. L.6, s. 3 (5); 1996, c. 18, s. 9 (1); 2004, c. 31, Sched. 21, s. 5 (1, 2); 2016, c. 37, Sched. 13, s. 3 (1). Tax only paid once (6) If a person who has paid the tax under this section tenders for registration an instrument evidencing the disposition, no tax is payable under section 2 if the Minister is satisfied that the instrument, (a) does not transfer any beneficial interest in land to any person other than the person who has paid the tax on the disposition under this section; and (b) does not increase any person’s beneficial interest in land in excess of the beneficial interest transferred by the disposition.  1996, c. 18, s. 9 (2); 2004, c. 31, Sched. 21, s. 5 (3); 2016, c. 37, Sched. 13, s. 3 (2). Verification of Minister (7) If the tax payable under this section has been paid, or no tax is payable under this Act, the Minister, or a person authorized in writing by the Minister, shall so verify, (a) over his or her signature on the instrument; or (b) in the manner approved by the Director of Land Registration, appointed under subsection 6 (1) of the Registry Act, where an electronic document is submitted for registration.  1996, c. 18, s. 9 (2). Registration of instrument without payment of tax, etc. (8) Where an instrument has been verified under subsection (7), it may be registered without the payment of tax under section 2 and without the production of the statement or affidavit required by section 5.  2004, c. 31, Sched. 21, s. 5 (4); 2016, c. 37, Sched. 13, s. 3 (3). Deferred payment (9) If the disposition of a beneficial interest in land is from one corporation to another corporation, each of which is an affiliate of the other immediately before and at the time of the disposition, the Minister may defer the payment of the tax payable by virtue of this section by the corporation acquiring the beneficial interest if, (a) before the thirtieth day after the date of disposition of the beneficial interest in the land, the corporation applies to the Minister for the deferral and submits a written undertaking satisfactory to the Minister, undertaking that for a period of at least thirty-six consecutive months immediately following the date of the disposition, (i) the corporation making the disposition and the corporation acquiring the beneficial interest on the disposition will continue to be affiliates of each other, and (ii) the beneficial interest in the land will continue to be owned by the corporation acquiring the beneficial interest on the disposition or by a corporation that is an affiliate of that corporation and with the corporation which made the disposition of the beneficial interest in the land; (b) security for the tax in a form and of a kind acceptable to the Minister is furnished to the Minister; and (c) no conveyance or instrument or electronic document evidencing the disposition has been registered.  R.S.O. 1990, c. L.6, s. 3 (9); 1996, c. 18, s. 9 (3); 2004, c. 31, Sched. 21, s. 5 (5). Extension of time (10) The Minister may extend the time for applying for a deferral and submitting the undertaking referred to in subsection (9) if the Minister is satisfied that any delay by the corporation in applying for the deferral or submitting the undertaking was not for the purpose of attempting to delay, avoid or evade the payment of the tax.  R.S.O. 1990, c. L.6, s. 3 (10). Cancellation to tax (11) The Minister shall return the security furnished in respect of the deferral granted under subsection (9) and the amount of tax deferred is no longer owing by reason of this section if, (a) the Minister is of the opinion that the undertaking given under subsection (9) has been satisfied and no conveyance or instrument evidencing the disposition of the beneficial interest in land has been registered; (b) a conveyance or instrument or electronic document evidencing the disposition of the beneficial interest in land to the corporation has been registered and the tax payable under section 2 has been paid; or (c) there has been a disposition of the beneficial interest in the land, or a conveyance of the land, by the corporation, or by an affiliate of the corporation, to a person who is not an affiliate of the corporation and tax has been paid under this Act in respect of that disposition or on registration of the conveyance, as applicable.  R.S.O. 1990, c. L.6, s. 3 (11); 1996, c. 18, s. 9 (4); 2004, c. 31, Sched. 21, s. 5 (6, 7); 2016, c. 37, Sched. 13, s. 3 (4). Dissolution or winding-up (12) For the purposes of subsection (11), if a corporation was an affiliate of another corporation immediately before winding-up or dissolving, the corporation shall be considered to continue to exist and to be an affiliate of that other corporation for the purpose of determining whether any undertakings given under subsection (9) have been fulfilled with respect to any disposition of a beneficial interest in land made before the winding-up or dissolution of the corporation or in the course of any distribution of property of the corporation on the winding-up or dissolution.  R.S.O. 1990, c. L.6, s. 3 (12). Requirement to pay tax (13) Nothing in subsection (9) or (11) relieves any person from the payment of tax under this Act upon the registration of a conveyance which evidences the disposition of a beneficial interest in land.  R.S.O. 1990, c. L.6, s. 3 (13). Registration of instrument evidencing disposition of beneficial interest in land (13.1) For the purposes of clauses (9) (c) and (11) (a) and (b), the registration of a conveyance of legal title to the land to the beneficial owner of the land or a trustee for the beneficial owner is deemed to be a conveyance which evidences the disposition of a beneficial interest in land.  2006, c. 33, Sched. P, s. 2 (1). Affiliate (14) For the purposes of this section, a corporation is an affiliate of another corporation if one of them is the subsidiary of the other, if both are subsidiaries of the same corporation or if each of them is controlled by the same person or persons.  2006, c. 33, Sched. P, s. 2 (2). Same (15) The following rules apply for the purposes of determining if corporations are affiliates: 1. A corporation is a subsidiary of another corporation if, i. it is controlled by, A. that other, B. that other and one or more corporations each of which is controlled by that other, or C. two or more corporations each of which is controlled by that other, or ii. it is a subsidiary of a corporation that is that other’s subsidiary. 2. A corporation is controlled by another person or corporation or by two or more corporations if, i. voting securities of the first-mentioned corporation carrying more than 50 per cent of the votes for the election of directors are held, otherwise than by way of security only, by or for the benefit of the other person or corporation or by or for the benefit of the other corporations, and ii. the votes carried by the voting securities described in subparagraph i are entitled, if exercised, to elect a majority of the board of directors of the first-mentioned corporation. 3. For the purposes of paragraph 2, i. a person is deemed to own beneficially securities that are beneficially owned by a corporation controlled by the person or by an affiliate of that corporation, and ii. a corporation is deemed to own beneficially securities that are beneficially owned by its affiliates. 4. Unless the regulations provide otherwise, references in paragraphs 2 and 3 to securities are references to securities within the meaning of the Securities Act.  2006, c. 33, Sched. P, s. 2 (2). Section Amendments with date in force (d/m/y) 1994, c. 18, s. 4 (5) - 23/06/1994; 1994, c. 18, s. 4 (6) - 29/11/1993; 1996, c. 18, s. 9 (1-4) - 01/06/1996; 1996, c. 29, s. 19 - 09/12/1996; 1997, c. 10, s. 11 - 07/05/1997 2004, c. 31, Sched. 21, s. 5 (1-7) - 16/12/2004 2006, c. 33, Sched. P, s. 2 (1, 2) - 20/12/2006 2016, c. 37, Sched. 13, s. 3 (1-4) - 08/12/2016 2017, c. 17, Sched. 1, s. 4 (1, 2) - 01/06/2017; 2017, c. 34, Sched. 23, s. 1 - 14/12/2017 4 Repealed:  2004, c. 31, Sched. 21, s. 6. Section Amendments with date in force (d/m/y) 1994, c. 18, s. 4 (5) - 23/06/1994 2004, c. 31, Sched. 21, s. 6 - 16/12/2004 Information and returns