jswizzle3737/ontario_laws_and_regs huggingface dataset:
Amount of Consideration for Eligible Investment
 2. (1) The amount of consideration for which an eligible investment is issued shall be calculated as the aggregate consideration expressed in Canadian currency for which the eligible investment is issued or made.  O. Reg. 318/97, s. 2 (1). (2) Despite subsection (1), if a deposit-taking institution, an insurance corporation related to a deposit-taking institution or a specified corporation makes an eligible investment in a qualifying small business corporation or qualifying small business in substitution for another investment in the corporation or business, other than a short-term loan, the following rules apply: 1. The consideration for which the eligible investment is issued shall be deemed to be the amount, if any, by which the amount of the consideration otherwise determined under this section exceeds the fair market value of the other investment immediately before the substitution. 2. The consideration for which the eligible investment is issued, as determined under paragraph 1, shall not be greater than the amount, if any, by which the fair market value of the eligible investment issued in substitution for the other investment exceeds the fair market value of the other investment.  O. Reg. 318/97, s. 2 (2); O. Reg. 299/98, s. 2 (1). (3) Despite subsections (1) and (2), if one or more corporations, each of which is a deposit-taking institution or a corporation related to a deposit-taking institution, makes a series of two or more eligible investments in the same qualifying small business corporation or qualifying small business, or in two or more corporations or businesses in the same associated group, and if it is reasonable to consider that the series of investments was made instead of one or more larger investments in order that one or more financial institutions obtain a benefit under section 66.1 of the Act, or a benefit in a greater amount than otherwise would be available, the series of investments shall be deemed to be one single investment.  O. Reg. 299/98, s. 2 (2). (4) In this section, “short-term loan” means a loan that, (a) has a term or remaining term of less than 12 months, or (b) is payable on the demand of the lender or subsequent holder, if the demand may be made within 12 months after the loan is made.  O. Reg. 318/97, s. 2 (4). Below-Prime Loan
Below-Prime Loan
 3. (1) For the purposes of subsection 66.1 (4.3) of the Act, the average outstanding balance during a taxation year of a below-prime loan owed to a corporation that is a financial institution, an insurance corporation or a specified corporation is determined using the average outstanding balances of the loan determined daily for each day in the corporation’s taxation year, weekly for each week in the corporation’s taxation year or monthly for each month in the corporation’s taxation year and, if the taxation year is less than 365 days, the amount otherwise determined shall be multiplied by the ratio of the number of days in the taxation year to 365.  O. Reg. 299/98, s. 3. (2) For the purposes of subsection 66.1 (4.10) of the Act, “average bank prime rate” means the “average prime rate” as defined in subsection 503 (1) of Regulation 183 of the Revised Regulations of Ontario, 1990 (“General”) made under the Corporations Tax Act.  O. Reg. 299/98, s. 3. (3) The following are prescribed businesses for the purposes of paragraph 3 of subsection 66.1 (4.10) of the Act: 1. The business of a person or partnership engaged in the professional practice of accounting, law, dentistry or medicine. 2. A business that provides managerial, administrative, financial, maintenance or other similar services to one or more businesses listed in paragraph 1.  O. Reg. 299/98, s. 3.
Below-Prime Loan
 4. Revoked:  O. Reg. 299/98, s. 4. Patient Capital Investment
Patient Capital Investment
 5. (1) For the purposes of clause 66.1 (4.14) (a) of the Act, an investment in a qualifying small business corporation is in accordance with the rules prescribed by the regulations if the investment is made in consideration for the issue by the qualifying small business corporation of one or more qualifying shares or qualifying obligations.  O. Reg. 318/97, s. 5 (1); O. Reg. 299/98, s. 6 (1). (2) For the purposes of determining the amount of a financial institution’s small business investment tax credit account under subsection 66.1 (4) of the Act, a loan made after May 6, 1997 to a qualifying small business by the financial institution, if it is a deposit-taking institution, or by a corporation that was related to the financial institution when the investment was made and that was a specified corporation, an insurance corporation or a deposit-taking institution, is a patient capital investment, except as otherwise provided in section 6, unless, (a) by reason of clause (a), (b), (d) or (e) of the definition of “qualifying obligation” in subsection 1 (1), the loan would not be a qualifying obligation if it had been issued by a qualifying small business corporation; or (b) as a result of the terms of the loan or of any security provided for it, the loan is not subordinate in right of repayment to all other debt obligations of the qualifying small business, other than the payment of, (i) qualifying obligations owing to the lender or to a person related to the lender, and (ii) obligations owing to, (A) a partner of the qualifying partnership or a person related to a partner of the qualifying partnership, if the business is carried on by a qualifying partnership, or (B) a person related to the qualifying sole proprietor, if the business is carried on by a qualifying sole proprietor.  O. Reg. 318/97, s. 5 (2); O. Reg. 299/98, s. 6 (2). (3) Despite subsection (2), a loan to a qualifying sole proprietor is not a patient capital investment unless the qualifying sole proprietor, (a) gives the lender financial statements covering the operations of the business carried on by the qualifying sole proprietor for the 12 months ending at the end of its last fiscal period, or for the period during which the proprietor carried on the business if less than 12 months before the end of its last fiscal period; and (b) gives the lender an undertaking supported by reasonable evidence that, (i) the amount of the investment will be used by the qualifying sole proprietor for the purposes only of gaining or producing income from the business, and (ii) the qualifying sole proprietor will keep the amount of the loan, all property acquired with the proceeds of the loan and all other assets used primarily in the business separate from his or her assets that are not used in the business.  O. Reg. 299/98, s. 6 (3). (4) The financial statements required by clause (3) (a) shall include, (a) a balance sheet prepared as of a date not earlier than the end of the sole proprietor’s last fiscal period; and (b) an income statement for the period of time described in clause (3) (a).  O. Reg. 299/98, s. 6 (3).
Patient Capital Investment
 7. Revoked:  O. Reg. 299/98, s. 8. Associated Small Business Corporations
Associated Small Business Corporations
  8. A corporation referred to in subsection 66.1 (6) of the Act is a qualifying small business corporation at a particular time if at that time, (a) it is a Canadian-controlled private corporation; and (b) it controls the qualifying small business corporation referred to in subsection 66.1 (5) of the Act with which it is associated.  O. Reg. 318/97, s. 8. Specified Corporation
Specified Corporation
 9. For the purposes of clause 66.1 (8) (a) of the Act, the type of corporation prescribed is a corporation that would be referred to in any paragraph in subsection 468 (1) of the Bank Act (Canada) if the references to “bank” in that subsection and in the definitions in subsection 464 (1) of that Act were read as “financial institution”.  O. Reg. 299/98, s. 9. Disposition of Patient Capital Investment
Interpretation
 11. (1) In this Part, “small business investment fund” means a corporation, fund, association or similar organization that satisfies the following conditions: 1. The primary objective and activity of the corporation, fund, association or organization is the investment of capital in small businesses carried on in Ontario. 2. The corporation, fund, association or organization carries out its activities or business through a permanent establishment in Ontario. 3. All or substantially all of the investments made by the corporation, fund, association or organization are eligible investments in qualifying small business corporations or qualifying small businesses that satisfy the following conditions: i. Neither the total assets nor the gross revenue of the qualifying small business corporation or qualifying small business exceeds $5,000,000. ii. If the qualifying small business corporation or qualifying small business is a member of a corporate group or associated group, neither the total assets nor the gross revenue of the group exceeds $5,000,000.  O. Reg. 318/97, s. 11 (1). (2) Despite subsection (1), a corporation, fund, association or organization is not a small business investment fund if it is a registered charity.  O. Reg. 318/97, s. 11 (2). Eligible Investment
Eligible Investment
 12. (1) An investment made after May 6, 1997 by a deposit-taking institution, or by a corporation that when the investment is made is related to a deposit-taking institution and is an insurance corporation or a specified corporation, is an eligible investment for the purposes of section 66.1 of the Act if it satisfies the following conditions: 1. The investment is a patient capital investment made in a small business investment fund that deals at arm’s length with the deposit-taking institution, insurance corporation or specified corporation. 2. The investment would be a patient capital investment if it had been issued by a qualifying small business corporation. 3. The small business investment fund reinvests all or part of the amount of the investment in investments in qualifying small business corporations or qualifying small businesses. The investments in qualifying small business corporations or qualifying small businesses must be, i. patient capital investments, or ii. below-prime loans, that would be eligible investments if issued directly to the deposit-taking institution, insurance corporation or specified corporation. 4. The small business investment fund certifies the amount of the investment by the deposit-taking institution, insurance corporation or specified corporation that has been reinvested by the fund as required in paragraph 3 and certifies the date of the reinvestments.  O. Reg. 299/98, s. 11. (2) For the purposes of section 66.1 of the Act, other than clause 66.1 (4) (c), if the conditions described in subsection (1) are satisfied, the deposit-taking institution, insurance corporation or specified corporation is considered, (a) to have made the eligible investment in the qualifying small business corporation or qualifying small business that was made by the small business investment fund; and (b) to have made the eligible investment referred to in clause (a) on the date the small business investment fund made the reinvestment.  O. Reg. 299/98, s. 11. (3) The tax credit amount of an eligible investment referred to in subsection (2) shall be deemed to be the tax credit amount that would be determined under section 66.1 of the Act if the deposit-taking institution, insurance corporation or specified corporation had made the investment in the qualifying small business corporation or qualifying small business.  O. Reg. 299/98, s. 11. Certification Rules
Certification Rules
 13. (1) Unless otherwise directed by the Minister, the certification provided by a small business investment fund under section 12 in respect of the reinvestment shall form part of the records and books of account required to be kept under section 94 of the Act by the financial institution that claims the tax credit under section 66.1 of the Act in respect of the reinvestment.  O. Reg. 318/97, s. 13 (1); O. Reg. 299/98, s. 12. (2) If incorrect certifications have been given under section 12, or a small business investment fund has certified an investment to be an eligible investment when it was not, the Minister may direct the fund to cease certifying investments and may order that all or certain of the investments made by the fund after the date of the direction and order shall be deemed not to be eligible investments for the purposes of this Part until the Minister revokes the direction and order.  O. Reg. 318/97, s. 13 (2). (3) If the Minister is satisfied that the small business investment fund will comply with the Minister’s directions with respect to the accuracy, form and content of certifications to be given under section 12, the Minister, subject to any conditions the Minister considers reasonable, may revoke the direction and order given under subsection (2), and all investments that would otherwise have been eligible investments while the Minister’s direction and order were in effect shall, to the extent approved by the Minister, be considered to be eligible investments for the purposes of this Part and may be so certified by the fund.  O. Reg. 318/97, s. 13 (3). Disposition of Investment in Fund
Disposition of Investment in Fund
 14. (1) Section 10 applies with necessary modifications in respect of a disposition of an investment in a small business investment fund that was made by a deposit-taking institution, or by a corporation that when the investment was made was related to a deposit-taking institution and was an insurance corporation or specified corporation.  O. Reg. 299/98, s. 13. (2) For the purposes of subsection (1), in the formula set out in subsection 10 (4), “A” is the amount determined in respect of the disposition of the investment, “B” is the amount equal to the lesser of the fair market value of the investment at the time of its disposition and the amount of consideration for which the investment was originally issued, “C” is the total of all tax credit amounts in respect of eligible investments made by the small business investment fund that have been included or are required to be included in calculating the amount determined in respect of a financial institution under clause 66.1 (4) (a) of the Act for that period, and “D” is the total amount of consideration for which eligible investments made by the small business investment fund were issued to the extent that, (a) the fund has reinvested investments made in the fund by the deposit-taking institution, insurance corporation or specified corporation in eligible investments in qualifying small business corporations or qualifying small businesses, and (b) amounts in respect of the reinvestments have been included or are required to be included in the amounts determined in respect of the financial institution under clause 66.1 (4) (a) of the Act.  O. Reg. 299/98, s. 13.
Disposition of Investment in Fund
 15. Omitted (provides for coming into force of provisions of this Regulation).  O. Reg. 318/97, s. 15.