32 (1) Every corporation that has claimed an Ontario small business deduction for a taxation year shall, in computing the amount of its tax payable under this Division for the year, add the amount, if any, of the corporation’s surtax for the year equal to the lesser of, (a) the amount claimed as a deduction by the corporation under subsection 31 (1) for the year; and (b) the amount calculated using the formula, A × (B + C – $500,000) × D/$500,000 in which, “A” is the corporation’s small business surtax rate for the year as set out in subsection (3), “B” is the amount of the corporation’s adjusted taxable income for the year, “C” is the sum of all amounts each of which is the adjusted taxable income of another corporation with which the corporation was associated at any time during the year, for the last taxation year of that associated corporation that ended at or before the end of the corporation’s taxation year, and “D” is the amount of the corporation’s Ontario small business income for the year. 2007, c. 11, Sched. A, s. 32 (1); 2008, c. 7, Sched. S, s. 7 (1). Rules for short taxation years and associated corporations (2) The following rules apply in calculating the amount, if any, of a corporation’s surtax for a taxation year under subsection (1): 1. If the taxation year of the corporation is less than 51 weeks, the adjusted taxable income of the corporation for the year is deemed to be the amount of its adjusted taxable income for the year as otherwise determined multiplied by the ratio of 365 to the number of days in the taxation year. 2. If the taxation year of a corporation (called in this subsection the “associated corporation”) that was associated with the corporation during the corporation’s taxation year is less than 51 weeks and is the only taxation year of the associated corporation ending in the corporation’s taxation year, the adjusted taxable income of the associated corporation for that taxation year is deemed to be the amount of its adjusted taxable income for the year as otherwise determined multiplied by the ratio of 365 to the number of days in that taxation year. 3. If the associated corporation has two or more taxation years ending in the corporation’s taxation year, the adjusted taxable income of the associated corporation for its last taxation year ending in the corporation’s taxation year is deemed to be the sum of all amounts, each of which is the adjusted taxable income of the associated corporation for each taxation year ending in the corporation’s taxation year and during which the associated corporation was at any time associated with the corporation multiplied by the ratio of 365 to the total number of days in all of those taxation years.  2007, c. 11, Sched. A, s. 32 (2). Small business surtax rate (3) A corporation’s small business surtax rate for a taxation year is 4.25 per cent multiplied by the ratio of the number of days in the taxation year before July 1, 2010 to the total number of days in the taxation year.  2009, c. 34, Sched. U, s. 8. Associated corporations (4) If two corporations would, but for subsection 256 (2) of the Federal Act, not be associated with each other at any time but are each associated with, or are deemed to be associated with, a third corporation at a particular time, the two corporations are deemed for the purposes of this section to be associated with each other at the particular time unless, (a) the third corporation is not a Canadian-controlled private corporation at the particular time; or (b) the third corporation elects under subsection 256 (2) of the Federal Act not to be associated with either of the two corporations for its taxation year that includes the particular time.  2007, c. 11, Sched. A, s. 32 (4). Section Amendments with date in force (d/m/y) 2008, c. 7, Sched. S, s. 7 (1, 2) - 01/01/2008 2009, c. 34, Sched. U, s. 8 - 15/12/2009