29.1 (1) In this section, (a) a corporation is an Ontario corporation for a taxation year if not more than 10 per cent of its taxable income for the year is deemed, or would be deemed if it had had income for that year, to have been earned outside Ontario for the purposes of section 39; and (b) a partnership is an Ontario partnership for a fiscal period of the partnership if not more than 10 per cent of its income for the fiscal period would be deemed to have been earned outside Ontario for the purposes of section 39 if the partnership were a corporation, its fiscal period were its taxation year and it had had income for the fiscal period.  1997, c. 43, Sched. A, s. 11 (1); 1998, c. 34, s. 33 (1); 2004, c. 16, s. 2 (2). Elections (2) The following rules apply in respect of elections under provisions of the Income Tax Act
(Canada) that apply for the purposes of this Subdivision: 1. No election may be made by a corporation or the members of a partnership for the purposes of this Act unless the election has been properly made by the corporation or members of the partnership for the purposes of the Income Tax Act (Canada). 2. If the amount elected or deemed to have been elected for the purposes of the Income Tax Act
(Canada) is different from the amount that would be elected or deemed to have been elected for the purposes of this Act, without reference to section 5.1, the amount determined for the purposes of the Income Tax Act (Canada) shall apply for the purposes of this Act.  1997, c. 43, Sched. A, s. 11 (1); 2004, c. 16, s. 2 (2). Exception to subs. (2) (3) Paragraph 2 of subsection (2) does not apply if, (a) the property in respect of which an election is made is property described in subclause 5.1 (8) (a) (iii) or prescribed by the regulations and the conditions described in clauses (7) (a) and (b) would not be met if subsection (7) applied in respect of the property; or (b) the rules or conditions prescribed by the regulations have been satisfied and the conditions described in clauses (7) (a) and (b) would not be met if  subsection (7) applied in respect of the property.  2001, c. 23, s. 26 (1); 2004, c. 16, s. 2 (2). Elected amounts (4) If all of the corporations required to make an election referred to in subsection (2), in respect of a disposition occurring after May 4, 1998, are Ontario corporations for the taxation year to which the election relates, and any partnership whose partners are required to make the election is an Ontario partnership for the fiscal period to which the election relates and all of its partners are corporations at the end of that fiscal period, or the rules or conditions prescribed by the regulations are satisfied, the corporations making an election under the Income Tax Act (Canada) may, upon delivering a joint election in a form approved by the Minister within the time specified in subsection 85 (6) of the Income Tax Act (Canada) as it reads for the purposes of this section, elect an amount in respect of the property equal to, (a) the amount elected or deemed to have been elected in respect of the property under the Income Tax Act
(Canada); (b) the amount elected or deemed to have been elected in respect of the property under the Income Tax Act
(Canada), less the cost amount of the property for the purposes of that Act, plus the cost amount of the property for the purposes of this Act, calculated immediately before the disposition to which the election relates; or (c) an amount that is greater than the lesser of the amounts described in clauses (a) and (b), but less than the greater of the amounts described in clauses (a) and (b).  1998, c. 34, s. 33 (2); 2004, c. 16, s. 2 (2). Same (5) If the property, in respect of which an election is made under the Income Tax Act (Canada), in respect of a disposition occurring after May 4, 1998, is property referred to in subclause 5.1 (8) (a) (i) or (ii), the corporations making the election, if each of them has a permanent establishment in Ontario, may, upon delivering a joint election in a form approved by the Minister within the time specified in subsection 85 (6) of the Income Tax Act (Canada) as it reads for the purposes of this section, elect an amount in respect of the property equal to, (a) the amount elected or deemed to have been elected in respect of the property under the Income Tax Act
(Canada); (b) the amount elected or deemed to have been elected in respect of the property under the Income Tax Act
(Canada), less the cost amount of the property for the purposes of that Act, plus the cost amount of the property for the purposes of this Act, calculated immediately before the disposition to which the election relates; or (c) an amount that is greater than the lesser of the amounts described in clauses (a) and (b), but less than the greater of the amounts described in clauses (a) and (b).  1998, c. 34, s. 33 (2); 2004, c. 16, s. 2 (2). Anti-avoidance (6) Subsection (4) does not apply in respect of the disposition of a property occurring after May 4, 1998 if, (a) the corporation that holds the property immediately after the disposition, (i) ceases to be an Ontario corporation within 36 months after the end of its taxation year to which the election relates and still holds the property immediately after it ceases to be an Ontario corporation, or (ii) disposes of the property within 36 months after the end of its taxation year to which the election relates; or (b) it is reasonable to believe that one of the reasons the corporation or any other person conducted its business and affairs in a manner that resulted in the corporation being an Ontario corporation for the taxation year to which the election relates is to increase or reduce an amount elected for the purposes of this Act.  1998, c. 34, s. 33 (2); 2004, c. 16, s. 2 (2). Same (7) Subsection (5) does not apply in respect of the disposition of a property occurring after May 4, 1998 referred to in that subsection if, (a) within 36 months after the end of its taxation year to which the election relates, (i) the corporation that holds the property immediately after the disposition, disposes of the property, or (ii) that corporation’s Ontario allocation factor is at least 10 percentage points less than its Ontario allocation factor for the taxation year to which the election relates; or (b) it is reasonable to believe that one of the reasons for the manner in which the corporation or any other person has conducted their business and affairs is to increase or reduce an amount elected for the purposes of this Act.  1998, c. 34, s. 33 (2); 2001, c. 23, s. 26 (2); 2004, c. 16, s. 2 (2). Deemed fair market value of the consideration (8) The amount agreed upon by two corporations in an election in respect of the disposition of property to which subsection  (3), (4) or (5) applies is deemed to be the fair market value of the consideration received by the transferor on the disposition, if the amount agreed upon in the election is more than the fair market value, as determined at the time of the disposition, of the consideration or the portion of the consideration received by the transferor that is not in the form of shares or a right to receive shares in the capital stock of the transferee.  2001, c. 23, s. 26 (3); 2004, c. 16, s. 2 (2). Section Amendments with date in force (d/m/y) 1997, c. 43, Sched. A, s. 11 (1, 2) - 06/05/1997; 1998, c. 34, s. 33 (1-3) - 05/05/1998 2001, c. 23, s. 26 (1-3)
- 05/12/2001 2004, c. 16, s. 2 (2)
- 01/01/2004 Subdivision H — Shareholders of Corporations not Resident in Canada