21 (1) In this section, “out-of-province employer” means an employer who does not ordinarily maintain a permanent establishment in Ontario but will establish a permanent establishment in Ontario for a period not exceeding twenty-four months.  R.S.O. 1990, c. E.11, s. 21 (1); 2004, c. 16, Sched. D, Table. Security (2) Before establishing a permanent establishment in Ontario, an out-of-province employer shall provide security to the Minister for the tax which may become payable by the employer under this Act and shall obtain a certificate in duplicate from the Minister that the requirements of this section have been met.  R.S.O. 1990, c. E.11, s. 21 (2); 2004, c. 16, Sched. D, Table. Form of security (3) The security referred to in subsection (2), and any security in replacement thereof, shall be in a form and of a kind acceptable to the Minister, and the Minister may demand additional or replacement security from time to time if the Minister considers that the original security is insufficient in relation to the out-of-province employer’s liabilities which will arise under this Act.  R.S.O. 1990, c. E.11, s. 21 (3). Waiver by Minister (4) In the certificate issued under subsection (2), or in any replacement thereof issued after a request by the out-of-province employer, the Minister may waive the requirement that the out-of-province employer provide security if the Minister is satisfied at the time the certificate or replacement certificate is issued that, (a) the out-of-province employer will be maintaining a permanent establishment in Ontario for more than twenty-four consecutive months after the issuance of the certificate; or (b) the total Ontario remuneration in respect of the out-of-province employer for the year in which the certificate or replacement certificate is issued and for all subsequent years in which the out-of-province employer will be maintaining a permanent establishment in Ontario will be nil.  R.S.O. 1990, c. E.11, s. 21 (4); 2004, c. 16, Sched. D, Table. Duty of person making payment to out-of-province employer (5) Any person making a payment to an out-of-province employer without first obtaining the duplicate copy of the certificate to be issued under this section shall, (a) deduct 1.95 per cent of all amounts payable to the out-of-province employer and pay such amount to the Minister on behalf of or as agent for the out-of-province employer on account of tax payable by the out-of-province employer under this Act; or (b) provide security in a form and of a kind acceptable to the Minister for 1.95 per cent of the total amount payable to the out-of-province employer to secure payment of the tax payable by the out-of-province employer under this Act.  R.S.O. 1990, c. E.11, s. 21 (5); 1994, c. 8, s. 21. Liability (6) If a person dealing with an out-of-province employer fails to comply with subsection (5), the person is personally liable for payment of that portion of the tax imposed by this Act each year on the out-of-province employer that is determined in accordance with the following formula: L = T × (A/R) where: L is the amount of the liability of the person for the year under this subsection, expressed in dollars; T is the total amount of tax payable by the out-of-province employer for the year; A is the portion of the total Ontario remuneration for the year paid by the out-of-province employer in connection with carrying out the terms of all contracts between the person and the out-of-province employer; and R is the total Ontario remuneration for the year paid by the out-of-province employer. R.S.O. 1990, c. E.11, s. 21 (6). Computation of interest (7) For the purposes of computing interest payable to any person under section 7, any cash deposit paid to the Minister to be held as security under this section shall be considered to be a payment made under this Act, but nothing in this section relieves an out-of-province employer from the requirement to pay instalments under section 3 or any other amount required by this Act to be paid.  R.S.O. 1990, c. E.11, s. 21 (7). Section Amendments with date in force (d/m/y) 1994, c. 8, s. 21 - 23/06/1994 2004, c. 16, Sched. D, Table - 01/01/2004