105 (1) If a trust was a mutual fund trust throughout a taxation year and a return of its income for the year has been filed within three years after the end of the year, the Ontario Minister, (a) may, on sending the notice of assessment for the year, pay an Ontario capital gains refund for the year to the trust; and (b) shall, with all due dispatch, pay the Ontario capital gains refund after mailing the notice of assessment if the trust applies in writing for it within the period in which the Ontario Minister is allowed to assess tax payable under Part II by the trust for the year.  2007, c. 11, Sched. A, s. 105 (1). Ontario capital gains refund (2) The amount of a mutual fund trust’s Ontario capital gains refund under subsection (1) for a taxation year is the lesser of the trust’s Ontario refundable capital gains tax on hand at the end of the year and the amount calculated using the formula, A × B × C in which, “A” is the trust’s Ontario allocation factor for the year for the purposes of Part II, “B” is the trust’s capital gains redemptions for the year for the purposes of section 132 of the Federal Act, and “C” is 50 per cent of the top marginal tax rate for the year for the purposes of Part II. 2007, c. 11, Sched. A, s. 105 (2); 2015, c. 38, Sched. 20, s. 9 (1). Additional refund (3) A mutual fund trust that is entitled to an Ontario capital gains refund under subsection (1) for a taxation year that ends after December 31, 2013 is entitled, at the time and in the manner provided in subsection (1), to receive an additional refund for the year equal to the amount calculated under subsection (3.0.1) or (3.0.2), as applicable. 2015, c. 20, Sched. 40, s. 17 (1). Same, if a qualifying mutual fund trust (3.0.1) If a mutual fund trust that is entitled to an additional refund for a taxation year under subsection (3) is a qualifying mutual fund trust for the year, as determined under subsection (3.0.3), the amount of the additional refund to which the trust is entitled under subsection (3) for the year is equal to the lesser of the amount of the trust’s surtax for the year under section 16 and the amount of tax that is payable under Division B of Part II by the trust for the year. 2015, c. 20, Sched. 40, s. 17 (1). Same, if not a qualifying mutual fund trust (3.0.2) If a mutual fund trust that is entitled to an additional refund for a taxation year under subsection (3) is not a qualifying mutual fund trust for the year, as determined under subsection (3.0.3), the amount of the additional refund to which the trust is entitled under subsection (3) for the year is equal to the lesser of, (a) the amount of the trust’s surtax for the year under section 16; and (b) the amount that would be the trust’s surtax for the year if the trust’s gross tax amount determined under subsection 16 (2) for the year were equal to the amount of the trust’s Ontario capital gains refund for the year. 2015, c. 20, Sched. 40, s. 17 (1). Qualifying mutual fund trust (3.0.3) For the purposes of this section, a mutual fund trust is a qualifying mutual fund trust for a taxation year if the following conditions are met: 1. The tax payable by the trust under Division B of Part II of this Act for the year, calculated without reference to subdivisions c and e of that Division and section 21, does not exceed the amount determined by the formula S × T × U where, “S” is the trust’s taxed capital gains for the year for the purposes of section 132 of the Federal Act, “T” is, (a) if the relevant year ends after December 31, 2015, the top marginal tax rate for the relevant year for the purposes of Division B of Part II of this Act, and (b) if the relevant year ends before January 1, 2016, the highest tax rate for the relevant year for the purposes of Division B of Part II of this Act, and “U” is the trust’s Ontario allocation factor for the relevant year for the purposes of Division B of Part II of this Act. 2. The amount of the trust’s Ontario capital gains refund for the year under subsection (1) is equal to or greater than the lesser of the amounts in respect of the year calculated for the trust under clauses (a) and (b) of the definition of “F” in subsection (4). 2015, c. 20, Sched. 40, s. 17 (1); 2015, c. 38, Sched. 20, s. 9 (2). Additional refund for basic tax and surtax paid in prior years (3.1) 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 equal to the sum of, (a) the trust’s additional refund of basic tax for the year, if any, calculated using the formula, K – (L + M) in which, “K” is the trust’s Ontario refundable capital gains tax on hand at the end of the year, “L” is the sum of all amounts each of which is determined under subsection (3.2) for a taxation year, other than the trust’s last taxation year ending before January 1, 2009, in respect of an additional refund of basic tax under subsection 4 (9.1) of the Income Tax Act, and “M” is the amount that the trust is entitled to receive as an Ontario capital gains refund for the year under subsection (1); and (b) the trust’s additional refund of surtax for the year, if any, calculated using the formula, N – (O + P) in which, “N” is the sum of all amounts, each of which is, (a) for a taxation year ending after 1995 and before 2009, the amount that would be the trust’s surcharge or surtax, as the case may be, under section 3 of the Income Tax Act
for the year if the amount determined to be “A” or “B”, whichever applies, for the purposes of the formula in subsection 4 (9.1) of that Act for the year were its gross tax amount determined under subsection 3 (2) of that Act for the year, (b) for a taxation year ending after 2008 and before 2014, the amount that would be the trust’s surtax under section 16 for the year if the trust’s gross tax amount determined under subsection 16 (2) for the year were the amount added to the trust’s Ontario refundable capital gains tax on hand at the end of the year, or (c) for a taxation year ending after 2013, (i)  if the trust is a qualifying mutual fund trust for the year, the lesser of the amount of the trust’s surtax for the year under section 16 and the amount of tax that is payable under Division B of Part II of this Act by the trust for the year, (ii)  if the trust is not a qualifying mutual fund trust for the year and the trust had an amount of surtax for the year under subsection 16 (1), the amount that would be the trust’s surtax under section 16 for the year if the trust’s gross tax amount determined under subsection 16 (2) for the year were the amount added to the trust’s Ontario refundable capital gains tax on hand at the end of the year, or (iii)  if the trust is not a qualifying mutual fund trust for the year and the trust did not have an amount of surtax for the year under subsection 16 (1), nil, “O” is the sum of all amounts, each of which is, (a) an amount determined under subsection (3.3) for a taxation year in respect of an additional refund of surcharge or surtax, as the case may be, under subsection 4 (9.1) of the Income Tax Act, or (b) an amount previously refunded to the trust as an additional refund of surtax for a year, as calculated under this clause, and “P” is the sum of all amounts refunded to the trust under subsection 4 (9) of the Income Tax Act or subsection (3) of this section in respect of taxation years ending after 1995. 2009, c. 18, Sched. 28, s. 16 (3); 2010, c. 1, Sched. 29, s. 25 (1); 2015, c. 20, Sched. 40, s. 17 (2). Amounts determined in respect of an additional refund of basic tax (3.2) For the purpose of subsection (3.1), the amount determined for a taxation year in respect of an additional refund of basic tax under subsection 4 (9.1) of the Income Tax Act
is the amount, if any, by which “Q” exceeds “R” where, “Q” is the amount that the trust was entitled to receive for the year under subsection 4 (9.1) of the Income Tax Act, and “R” is the amount determined under subsection (3.3) for the year in respect of an additional refund of surcharge or surtax, as the case may be, under subsection 4 (9.1) of the Income Tax Act.  2009, c. 34, Sched. U, s. 26. Amounts previously refunded as additional refunds of surtax (3.3) For the purpose of subsection (3.1), the amount determined for a taxation year in respect of an additional refund of surcharge or surtax under subsection 4 (9.1) of the Income Tax Act is, (a) if the trust was entitled to receive an amount for the year under subsection 4 (9.1) of the Income Tax Act, the lesser of, (i) that amount, and (ii) the amount determined as “C” for the year for the purposes of the formula in subsection 4 (9.1) of the Income Tax Act
less the sum of, (A) the sum of all amounts of surcharge or surtax, as the case may be, that were refunded as part of an amount refunded to the trust before the year under subsection 4 (9.1) of the Income Tax Act, and (B) the sum of all amounts of surcharge or surtax, as the case may be, that were refunded as part of an amount refunded to the trust before the year or in the year under subsection 4 (9) of the Income Tax Act in respect of a taxation year ending after 1995; or (b) in any other case, nil.  2009, c. 34, Sched. U, s. 26. Ontario refundable capital gains tax on hand (4) The amount of a mutual fund trust’s Ontario refundable capital gains tax on hand at the end of a particular taxation year is the amount calculated using the formula, (D – E – E.1) + (F – G) in which, “D” is the amount of the mutual fund trust’s refundable capital gains tax on hand at the end of its last taxation year ending before January 1, 2009, as determined for the purposes of subsection 4 (1.1) of the Income Tax Act, “E” is the amount of the mutual fund trust’s capital gains refund for its last taxation year ending before January 1, 2009, as determined for the purposes of subsection 4 (8) of the Income Tax Act, “E.1”  is the amount that is determined under subsection (3.2) for the mutual fund trust’s last taxation year ending before January 1, 2009 in respect of an additional refund of basic tax under subsection 4 (9.1) of the Income Tax Act, “F” is the sum of all amounts, each of which is an amount in respect of a taxation year (in this subsection referred to as a “relevant year”) that is the particular taxation year or a previous taxation year ending after December 31, 2008 throughout which the trust was a mutual fund trust, equal to the lesser of, (a) the amount of tax that would be payable under Division B of Part II of this Act by the trust for the relevant year, calculated without reference to sections 16 and 21 of this Act, and (b) the amount calculated using the formula, H × T × U in which, “H” is the lesser of the trust’s taxable income for the relevant year and the amount of its taxed capital gains for the relevant year for the purposes of section 132 of the Federal Act, “T” is, (i)  if the relevant year ends after December 31, 2015, the top marginal tax rate for the relevant year for the purposes of Division B of Part II of this Act, and (ii)  if the relevant year ends before January 1, 2016, the highest tax rate for the relevant year for the purposes of Division B of Part II of this Act, and “U” is the trust’s Ontario allocation factor for the relevant year for the purposes of Division B of Part II of this Act, and “G” is the sum of, (a) the sum of all refunds, each of which the trust was entitled to claim under subsection (1) for a previous taxation year ending after December 31, 2008, and (b) the sum of all amounts, each of which is an amount determined under clause (3.1) (a) for a previous taxation year ending after December 31, 2008. 2010, c. 1, Sched. 29, s. 25 (2); 2015, c. 38, Sched. 20, s. 9 (3). Qualifying exchange (5) If a mutual fund trust is a transferee in a qualifying exchange in a taxation year of the trust, the trust’s Ontario refundable capital gains tax on hand at the end of each subsequent taxation year shall be determined by adding to the amount otherwise determined as “D” in subsection (4) the amount calculated using the formula, (I − J) × (W ∕ X) in which, “I” is, (a) if the transferor is a mutual trust fund, the transferor’s Ontario refundable capital gains tax on hand at the end of the taxation year of the transferor in which the transfer occurs (in this subsection referred to as the “transferor’s year”) determined under subsection 4 (1.1) of the former Act or this section, as the case may be, (b) if the transferor is a mutual fund corporation and the transferor’s year ended before January 1, 2009, the transferor’s refundable capital gains tax on hand determined under section 48 of the Corporations Tax Act, at the end of the transferor’s year, or (c) if the transferor is a mutual fund corporation and the transferor’s year ended after December 31, 2008, the transferor’s Ontario refundable capital gains tax on hand determined under subsection 106 (3) at the end of the transferor’s year, “J” is the sum of all amounts, each of which is the transferor’s refund for the transferor’s year, determined under subsection (2) or subsection 106 (2) if the year ended after December 31, 2008 or under subsection 4 (8) of the former Act or section 48 of the Corporations Tax Act if the year ended before January 1, 2009, “W” is, (a) if the qualifying exchange occurs before March 22, 2017, 1, or (b) if the qualifying exchange occurs on or after March 22, 2017, the total fair market value of property of the transferor disposed of to, net of liabilities assumed by, the transferee on the qualifying exchange, and “X” is, (a) if the qualifying exchange occurs before March 22, 2017, 1, or (b) if the qualifying exchange occurs on or after March 22, 2017, the total fair market value of property of the transferor disposed of to, net of liabilities assumed by, all transferees on the qualifying exchange. 2018, c. 8, Sched. 32, s. 6. Application of refund to another liability (6) Instead of making a refund referred to in subsection (1) or (3) that might otherwise be made, the Ontario Minister may, if the trust is liable or about to become liable to make any payment under this Act, the Federal Act or under any similar Act of another province, apply the amount that would otherwise be refunded to that other liability and notify the trust of that action.  2007, c. 11, Sched. A, s. 105 (6). Interpretation (7) For the purposes of clause (1) (b), the period in which the Ontario Minister is allowed to assess tax payable under Part II by a trust for a taxation year is the period of time that would be allowed under subsection 152 (4) of the Federal Act, as it applies for the purposes of this Act, if that subsection were read without reference to paragraph 152 (4) (a).  2007, c. 11, Sched. A, s. 105 (7). Definition (8) In this section, “former Act” means the Income Tax Act; (“ancienne Loi”) “qualifying exchange” has the same meaning as in subsection 132.2 (1) of the Federal Act. (“échange admissible”)  2007, c. 11, Sched. A, s. 105 (8); 2015, c. 20, Sched. 40, s. 17 (4). Section Amendments with date in force (d/m/y) 2009, c. 18, Sched. 28, s. 16 (1-4) - 01/01/2009; 2009, c. 34, Sched. U, s. 26 - 01/01/2009 2010, c. 1, Sched. 29, s. 25 (1, 2) - 01/01/2009 2015, c. 20, Sched. 40, s. 17 (1, 2) - 01/01/2014; 2015, c. 20, Sched. 40, s. 17 (3, 4) - 01/01/2009; 2015, c. 38, Sched. 20, s. 9 (1-3) - 01/01/2016 2018, c. 8, Sched. 32, s. 6 - 08/05/2018