Eligible Expenditures
 5. (1) Subject to subsection (1.1), the following amounts paid or payable by an eligible employer in respect of a qualifying work placement are eligible expenditures for a taxation year for the purposes of section 8.2 of the Act and this Regulation: 1. Amounts paid or payable to the student in the qualifying work placement as salary or wages that, i. would be considered for the purposes of Part XXVI of the Federal Regulations to be included in the amount of salary or wages paid to employees of a permanent establishment of the eligible employer in Ontario, and ii. are required by Subdivision a of Division B of Part I of the Federal Act to be included, when paid, in the income from employment of the student in respect of the qualifying work placement. 2. Fees paid or payable to an employment agency in consideration for the provision of the services carried out by the student in the qualifying work placement, if the services are carried out by the student primarily at a permanent establishment of the eligible employer in Ontario.  O. Reg. 330/97, s. 5 (1); O. Reg. 296/98, s. 5 (1); O. Reg. 59/06, s. 5 (1-4). (1.1) The following amounts are not eligible expenditures for the purposes of section 8.2 of the Act and this Regulation: 1. An amount paid or payable in respect of services performed after December 31, 2004 by a student who was employed in a qualifying leading edge technology work placement before October 26, 2004 if, i. the work placement was not under an apprenticeship program, or ii. the work placement was under an apprenticeship program but, on May 19, 2004, the student employed in the work placement was not in the first 36 months of a qualifying leading edge technology education program. 2. An amount paid or payable in respect of services performed after May 18, 2004 by a student who was in a qualifying leading edge technology education program on May 18, 2004 if, i. the work placement was under an apprenticeship program, and ii. on May 19, 2004, the student was in the first 36 months of a qualifying leading edge technology education program.  O. Reg. 59/06, s. 5 (5). (2) The total of all eligible expenditures made by an eligible employer in respect of a qualifying work placement is the amount otherwise determined less the amount of all government assistance, if any, in respect of the eligible expenditures that, at the time the eligible employer’s return is required to be delivered under section 9 of the Act for the taxation year for which the tax credit is claimed, the eligible employer has received, is entitled to receive or may reasonably be expected to be entitled to receive.  O. Reg. 296/98, s. 5 (2). (3) Despite subsection (1), an expenditure made by an eligible employer in respect of a work placement is not an eligible expenditure for the purposes of section 8.2 of the Act or this Regulation, (a) to the extent that the amount of the expenditure would not be considered to be reasonable in the circumstances by persons dealing with each other at arm’s length; or (b) if the work placement is with a person other than the eligible employer.  O. Reg. 330/97, s. 5 (3); O. Reg. 296/98, s. 5 (3). (3.1) The amount of salary or wages paid or deemed to have been paid by an eligible employer in a taxation year for the purposes of section 8.2 of the Act and this Regulation is the amount that would be determined for that year without reference to any salary or wages paid by a partnership of which the employer is a partner.  O. Reg. 296/98, s. 5 (4). (3.2) Despite subsection (1), an amount paid or payable before June 1, 2007 to a student of Redeemer University College or to an employment agency as consideration for the provision of services carried out by a student of Redeemer University College in a qualifying work placement is not an eligible expenditure for the purposes of section 8.2 of the Act.  O. Reg. 308/07, s. 2. (4) In this section, “salary or wages” means salary or wages as defined by subsection 248 (1) of the Federal Act.  O. Reg. 330/97, s. 5 (4); O. Reg. 296/98, s. 5 (5). Claim for Tax Credit