Eligible expenditures
 10. (1) For the purposes of section 43.4 of the Act and subject to subsection (2), the following amounts paid or payable by a corporation in respect of a qualifying work placement are eligible expenditures for a taxation year: 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 III of Regulation 183 of the Revised Regulations of Ontario, 1990 (General) made under the Act to be included in the amount of salary or wages paid to employees of a permanent establishment of the corporation in Ontario, and ii. are required by Subdivision a of Division B of Part I of the Income Tax Act (Canada) 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 corporation in Ontario.  O. Reg. 61/06, s. 10 (1). (2) The following amounts are not eligible expenditures for the purposes of section 43.4 of the Act: 1. An amount paid or payable in respect of services performed after December 31, 2004 by a student who was first 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. 61/06, s. 10 (2). (3) The total of all eligible expenditures made by a corporation 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 corporation’s return is required to be delivered under section 75 of the Act for the taxation year for which the tax credit is claimed, the corporation has received, is entitled to receive or may reasonably be expected to be entitled to receive.  O. Reg. 61/06, s. 10 (3). (4) Despite subsection (1), an expenditure made by a corporation in respect of a work placement is not an eligible expenditure for the purposes of section 43.4 of the Act, (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 corporation.  O. Reg. 61/06, s. 10 (4). (4.1) 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 43.4 of the Act.  O. Reg. 306/07, s. 2. (5) If a qualifying work placement is deemed by subsection 9 (2) to be a work placement with only one of two or more corporations, (a) the corporation designated under that subsection shall be deemed to have paid all amounts referred to in paragraphs 1 and 2 of subsection (1) that were paid or payable by the corporations, and those amounts shall be deemed not to have been paid or payable by the other corporations; and (b) the corporation designated under that subsection shall be deemed to have received or be entitled to receive all government assistance in respect of the work placement that any of the other corporations has received, is entitled to receive or may reasonably be expected to be entitled to receive, and the other corporations shall be deemed not to have received or be entitled to receive that government assistance.  O. Reg. 61/06, s. 10 (5). (6) The amount of salaries and wages deemed to have been paid by a corporation in a previous taxation year for the purposes of subsection 43.4 (3.1) of the Act is the amount that would otherwise be determined for that year if, (a) the rules set out in subsection 87 (1.2) of the Income Tax Act (Canada) and subsection 87 (1.4) of that Act applied; and (b) no amount is included in respect of salaries and wages paid by any partnership of which the corporation was a member.  O. Reg. 61/06, s. 10 (6). (7) In this section, “government assistance” means assistance from a government, municipality or other public authority in any form, including a grant, subsidy, forgivable loan, deduction from tax or investment allowance, but not including the following: 1. An Ontario innovation tax credit under section 43.3 of the Act. 2. A co-operative education tax credit under section 43.4 of the Act. 3. An Ontario film and television tax credit under section 43.5 of the Act. 4. A Canadian film or video production tax credit under section 125.4 of the Income Tax Act (Canada). 5. An investment tax credit under section 127 of the Income Tax Act (Canada). 6. An Ontario book publishing tax credit under section 43.7 of the Act. 7. An Ontario computer animation and special effects tax credit under section 43.8 of the Act. 8. An Ontario business-research institute tax credit under section 43.9 of the Act.  O. Reg. 61/06, s. 10 (7).