2.1 (1) Every person who is resident in Ontario, or who carries on business in Ontario, and who, (a)  enters into a contract of insurance with an insurer; (b)  is a person whose risk is covered by group insurance; (c)  is a planholder or member of a benefits plan; or (d)  is required to contribute to an insurance scheme or a compensation fund established by or under any Act of the Parliament of Canada or the Legislature of Ontario, shall pay to Her Majesty in right of Ontario a tax at the rate of 8 per cent of the premium payable.  1994, c. 13, s. 3. Same (2) Every person who is resident in Ontario, or who carries on business in Ontario and who is the holder of group insurance shall pay to Her Majesty in right of Ontario a tax at the rate of 8 per cent of the premium payable by the person less the premiums, if any, paid to the person by those whose risks are covered by the policy.  1994, c. 13, s. 3. Treatment of non-residents (3) Every person who is not a resident of Ontario, or who does not carry on business in Ontario, and, (a)  who enters into a contract of insurance with an insurer in respect of individuals who are ordinarily resident in Ontario, real property in Ontario or personal property ordinarily situated in Ontario; or (b)  who is a planholder in respect of members who are ordinarily resident in Ontario and who are not employees of the planholder, shall pay to Her Majesty in right of Ontario a tax at the rate of 8 per cent of the premium payable.  1994, c. 13, s. 3. Same (4) Every person who is not a resident of Ontario or who does not carry on business in Ontario, but who is the holder of group insurance covering risks of persons who are ordinarily resident in Ontario and who are not employees of the holder, shall pay to Her Majesty in right of Ontario a tax at the rate of 8 per cent of the premiums payable by the person less the premiums, if any, paid to the person by those persons in Ontario whose risks are covered by the policy.  1994, c. 13, s. 3. (5)-(7) Repealed:  2008, c. 7, Sched. R, s. 2 (1). Exemptions (8) Despite this section, no tax is payable on premiums for, (a)  contracts of reinsurance; (b)  contracts of insurance on agricultural property as defined by the Minister where the property is used by a person who is engaged in the business of farming; (c)  contracts of insurance (other than contracts of group insurance or trip cancellation insurance) for the life, health or physical well-being of insured individuals; (c.1)  contracts of automobile insurance with respect to motor vehicles required to be insured under the Compulsory Automobile Insurance Act; (d)  marine insurance, as defined under the Insurance Act, in respect of a vessel where the purchaser of the vessel is exempt from tax under paragraphs 29, 30 and 61 of subsection 7 (1); (e)  contracts of insurance in respect of aircraft where the purchaser of the aircraft is exempt from tax under paragraph 22 of subsection 7 (1); (f)  contracts of insurance entered into by an Indian, a band or the council of a band in respect of real or personal property situated on a reserve or in respect of an Indian ordinarily resident on a reserve, or a benefits plan or contracts of group insurance where the person whose risk is covered is an Indian ordinarily resident on a reserve; (g)  the purchase of an annuity contract; (h)  the obtaining of a surety; (i)  a contract for the service, maintenance or warranty of tangible personal property; (j)  a contract of insurance entered into by an employer in respect of employees who ordinarily work outside Ontario or whose salary is ordinarily paid outside Ontario, or in respect of former employees who are no longer resident in Ontario; (k)  a contract of insurance entered into by a person in respect of an individual who is not ordinarily resident in Ontario; (l)  property insurance, as defined under the Insurance Act, in respect of property that is wholly outside Ontario or other insurance (but not group insurance) in respect of a risk, peril or events wholly outside Ontario; (m)  any contract of insurance that may be prescribed.  1994, c. 13, s. 3; 2004, c. 31, Sched. 33, s. 2; 2008, c. 7, Sched. R, s. 2 (2, 3). (9) Repealed:  2010, c. 26, Sched. 17, s. 3 (1). Further exemptions (10) Despite subsection (1), no tax is payable on premiums, assessments or contributions paid pursuant to the Canada Pension Plan, the Credit Unions and Caisses Populaires Act, 2020, the Agricultural Products Insurance Act, 1996, the Employment
Insurance Act (Canada), the Workplace Safety and Insurance Act, 1997 or any other statute that is prescribed by the regulations. 2009, c. 34, Sched. R, s. 4; 2015, c. 6, s. 11; 2020, c. 36, Sched. 7, s. 335. Same (10.1) Despite this section, no tax is payable after October 14, 2009 on any portion of a premium that is subject to tax under subsection 165 (2) of the Excise Tax Act (Canada).  2010, c. 1, Sched. 25, s. 3. When tax payable (11) With respect to a premium referred to in clause (a), (b) or (c) of the definition of “premium” in subsection 1 (1), the tax payable under this section shall be collected by the vendor when the premium is paid to the vendor.  1994, c. 13, s. 3. Same (12) With respect to a premium referred to in clause (d) of the definition of “premium” in subsection 1 (1), (a)  the tax under this section shall be collected by the vendor at the time the planholder paid the premium referred to in subclause (d) (i) of the definition to the vendor, or at the time the member paid the premium referred to in subclause (d) (ii) of the definition to the vendor; or (b)  where the planholder also administers the plan, the tax under this section shall be collected at the time the planholder received from the member the premium referred to in subclause (d) (ii) of the definition, and the planholder shall pay the tax on the premium referred to in subclause (d) (i) of the definition at the time the planholder paid any premium to or on behalf of the member at the time or times and in the manner prescribed in the regulations.  1994, c. 13, s. 3. Same (13) With respect to a premium referred to in clause (e) of the definition of “premium” in subsection 1 (1), (a)  the tax under this section shall be collected by the vendor at the time the planholder paid the premium referred to in subclause (e) (i) of the definition to the vendor, or at the time the member paid the premium referred to in subclause (e) (ii) of the definition to the vendor; or (b)  where the planholder also administers the plan, the tax shall be collected at the time the planholder received from the member the premium referred to in subclause (e) (ii) of the definition, and the planholder shall pay the tax on the premium referred to in subclause (e) (i) of the definition at the time and in the manner prescribed in the regulations.  1994, c. 13, s. 3. Accounting by person liable to pay tax (14) Every person who is liable to pay tax under this section, but who is obliged to pay the premium to a vendor who does not carry on business in Ontario, shall remit the tax payable by that person to the Minister at the time or times and in the manner prescribed by the regulations.  1994, c. 13, s. 3. Person deemed purchaser (15) Every person who is liable to pay tax under this section shall be deemed to be a purchaser for the purposes of assessment, collection and enforcement of this Act.  1994, c. 13, s. 3. Apportionment of premium (16) Where a contract of insurance (other than group insurance) relates to a risk, peril or events both in Ontario and outside Ontario, the tax payable under this section shall be calculated only upon the portion of the premium relating to the risk, peril or events in Ontario determined in the manner prescribed by the Minister.  1994, c. 13, s. 3. Same (17) Where a contract of insurance relates to a risk, peril or event that is taxable and exempt from tax or that is taxed at different rates under this section, the portion of the premium that is taxable or that is taxable at a particular rate shall be determined in the manner prescribed by the Minister.  1994, c. 13, s. 3. Same (18) Tax payable under this section shall be calculated only upon the premium related to members of a benefits plan who, if they are employees of the planholder, work at a location in Ontario or who are paid through a location in Ontario or if they are not members by reason of their employment, are ordinarily resident in Ontario.  1994, c. 13, s. 3. Initial designation of benefit plans as funded or unfunded (19) A planholder who establishes a new benefits plan on or after November 18, 2010, other than a qualifying trust, shall designate in writing, in the manner required by the Minister, whether the benefits plan is intended to be a funded benefits plan or an unfunded benefits plan and, when the designation is made in the required manner, the plan is deemed to be so designated for the purposes of this Act unless the designation is changed under subsection (20).  2010, c. 26, Sched. 17, s. 3 (2). Change of designation (20) If the planholder of a funded benefits plan or an unfunded benefits plan gives written notice to the Minister, in the manner required by the Minister, that the plan is changed and that the designation of the plan is changed, the designation is deemed to be so changed on the day the Minister receives the notice.  2010, c. 26, Sched. 17, s. 3 (2). Transition (21) Subsection (20) applies with respect to benefits plans initially designated under this section before, on or after November 18, 2010.  2010, c. 26, Sched. 17, s. 3 (2). Effect of change in designation (22) The following rules apply if the designation of a benefits plan is changed under subsection (20): 1.  If, after the change, the plan is designated as an unfunded benefits plan, no tax is payable under subsection (1) on benefits paid out of the benefits plan on or after the effective date of the change that may reasonably be attributed to premiums paid into the benefits plan on which tax has previously been paid. 2.  If, after the change, the plan is designated as a funded benefits plan, i.  tax is payable under subsection (1) on the total amount in the benefits plan at the time the change in the designation takes effect, and ii.  the planholder shall remit the tax referred to in subparagraph i in the same manner and at the same time any tax payable or collected under this section is to be remitted.  2010, c. 26, Sched. 17, s. 3 (2). Section Amendments with date in force (d/m/y) 1994, c. 13, s. 3 - 20/05/1993; 1997, c. 16, s. 16 - 01/01/1998 2000, c. 10, s. 26 (1, 2) - 03/05/2000 2004, c. 31, Sched. 33, s. 2 (1, 2) - 30/04/2007 2006, c. 33, Sched. Z.4, s. 2 - 20/12/2006 2008, c. 7, Sched. R, s. 2 (1-3) - 14/05/2008 2009, c. 34, Sched. R, s. 4 - 15/12/2009 2010, c. 1, Sched. 25, s. 3 - 18/05/2010; 2010, c. 26, Sched. 17, s. 3 (1) - 08/12/2010; 2010, c. 26, Sched. 17, s. 3 (2) - 18/11/2010 2015, c. 6, s. 11
- 01/09/2015 2020, c. 36, Sched. 7, s. 335 - 01/03/2022 2.1.1 Section Amendments with date in force (d/m/y) 2009, c. 34, Sched. R, s. 5 (3) - no effect - see Table of Public Statute Provisions Repealed Under Section 10.1 of the Legislation Act, 2006 - 31/12/2019 2010, c. 1, Sched. 25, s. 4 - no effect - see 2009, c. 34, Sched. R, s. 5 (3) - 31/12/2019