jswizzle3737/ontario_laws_and_regs huggingface dataset:
3. (1) For the purposes of clause 9 (1) (b) of the Act, a small business is primarily engaged in a business activity or activities prescribed by subsection 2 (1) if the aggregate of, (a) the percentage, expressed as a decimal fraction, that the assets used in the activity or activities is of the assets used in the total operations of the small business; and (b) the percentage, expressed as a decimal fraction, that the wages and salaries paid in respect of the activity or activities is of the wages and salaries paid in respect of the total operations of the small business, exceeds the number 1. R.R.O. 1990, Reg. 1020, s. 3 (1). (2) Where a small business is commencing its first operations in a business activity or activities prescribed by subsection 2 (1), other than an activity prescribed under clause 2 (1) (g), as of the date of investment by a small business development corporation, the small business is deemed to be primarily engaged in the activity or activities if, not later than twelve months following the date of investment by the small business development corporation in the small business, the small business is primarily engaged in the activity or activities in accordance with subsection (1). R.R.O. 1990, Reg. 1020, s. 3 (2). (3) Where a small business is commencing its first operations in a business activity or activities prescribed under subclause 2 (1) (g) (i) as of the date of investment by the small business development corporation, the small business is deemed to be primarily engaged in the activity or activities if, not later than twenty-four months following the date of investment by the small business development corporation in the small business, the small business and any associates of the small business, on their own behalf or on behalf of others, have incurred and continue to incur, development and production costs, 51 per cent of which are incurred directly in the production of qualifying films and the small business is primarily engaged in film production in accordance with subsection (1). R.R.O. 1990, Reg. 1020, s. 3 (3). (4) For the purpose of clause (1) (a), any asset held by a partnership of which the small business is a partner and any interest of the small business in a partnership shall not be assets of the small business used in a business activity or activities prescribed by subsection 2 (1). R.R.O. 1990, Reg. 1020, s. 3 (4).
4. For the purposes of clause 9 (1) (c) of the Act, an eligible investment representing net new equity capital shall be calculated as the difference between, (a) the fair market value, at the date of purchase or redemption by the small business or an affiliated corporation, directly or indirectly, of any previously issued shares of the small business or an affiliated corporation; and (b) the purchase price for which the newly issued equity shares of the small business have been purchased or acquired by the small business development corporation. R.R.O. 1990, Reg.1020, s. 4.
5. For the purposes of subsection 10 (2) of the Act, the deposit of assets of a small business development corporation in a corporation incorporated as a credit union or caisse populaire under the Credit Unions and Caisses Populaires Act, or a predecessor of that Act, is prescribed as an authorized investment. R.R.O. 1990, Reg. 1020, s. 5.
6. (1) In this section, “adjustment date” means January 1, April 1, July 1 or October 1; “average prime rate”, on a particular date, means the mean, rounded to the nearest whole percentage point, of the annual rates of interest announced by each of the Royal Bank of Canada, The Bank of Nova Scotia, the Canadian Imperial Bank of Commerce, the Bank of Montreal and The Toronto-Dominion Bank to be its prime or reference rate of interest in effect on that date for determining interest rates on Canadian dollar commercial loans by that bank in Canada. O. Reg. 315/97, s. 1. (2) For the purposes of the Act, the prescribed rates of interest shall be determined in accordance with the following rules: 1. A base rate of interest shall be determined for January 1, 1997 and for each adjustment date after January 1, 1997 and shall be equal to the average prime rate on, i. October 15 of the previous year, if the adjustment date is January 1, ii. January 15 of the same year, if the adjustment date is April 1, iii. April 15 of the same year, if the adjustment date is July 1, and iv. July 15 of the same year, if the adjustment date is October 1. 2. The base rate of interest in effect on a particular date shall be, i. the base rate for the particular date, if the particular date is an adjustment date, and ii. the base rate for the last adjustment date before the particular date, otherwise. 3. The prescribed rate of interest payable by a person under the Act in respect of a particular day shall be an annual interest rate that is three percentage points higher than the base rate of interest in effect on that day. 4. The prescribed rate of interest to be paid or allowed by the Minister to a person under the Act, in respect of a particular day before July 1, 2006, shall be an annual interest rate that is two percentage points lower than the base rate of interest in effect for that day. 5. The prescribed rate of interest to be paid or allowed by the Minister to a person under the Act, in respect of a particular day after June 30, 2006, shall be an annual interest rate that is three percentage points lower than the base rate of interest in effect for that day. O. Reg. 315/97, s. 1; O. Reg. 213/06, s. 1.
8. In determining the amount of equity capital of a small business development corporation for the purposes of section 7 of the Act, all equity shares issued and outstanding at the date of registration of the small business development corporation under the Act shall be deemed to have been issued on the date of registration. R.R.O. 1990, Reg.1020, s. 8.
9. For the purposes of clause 10 (1) (e) of the Act, (a) that portion of the investment by a small business development corporation in a small business that, (i) is described in clause 9 (1) (c) of the Act, where the investment does not represent net new equity capital but the equity shares are issued as part of a transaction involving the purchase or redemption of previously issued shares of the small business or an affiliated corporation that are owned by a person who is not a shareholder or an associate of a shareholder of the small business development corporation, (ii) is described in clause 14 (a) or (b), where the repayment of the loan or the payment of dividends is made to a person who is not a shareholder or an associate of a shareholder of the small business development corporation, (iii) is described in clause 14 (c), where the vendor is not a shareholder or an associate of a shareholder of the small business development corporation, (iv) is described in clause 14 (d), where the Minister is satisfied that the debt was not incurred primarily for the purpose of enabling the investment in the small business to qualify as a prescribed form of asset, or (v) represents net new capital in the form of shares issued to the small business development corporation by a small business that would otherwise qualify as an eligible investment, and that, (A) have a preference over other shares as to the payment of dividends but no further right to participate in the distribution of profits of the corporation, (B) carry the right to such dividends at a rate acceptable to the Minister, whether the rate is set out in the articles of the corporation or is at the discretion of the directors of the corporation, (C) carry no voting rights except as required under the Business Corporations Act, and (D) carry no right to receive any property or money in excess of the fair market value or the consideration paid on the issue of the shares in the event that the eligible small business redeems, acquires, cancels or otherwise reduces the stated capital account with respect to those shares or in the event the eligible small business winds up, dissolves or reorganizes its business; (b) the acquisition by a small business development corporation of a small business development bond as defined under section 15.1 of the Income Tax Act (Canada) issued by a small business 75 per cent or more of whose wages and salaries are paid in respect of operations in Ontario; and (c) debt obligations issued by a shareholder of a small business in order to acquire shares of the small business from a small business development corporation, are a prescribed form of asset. R.R.O. 1990, Reg. 1020, s. 9.
11. For the purposes of subsection 20 (6) of the Act, a corporation that has a permanent establishment in Ontario for the purposes of the Corporations Tax Act and is exempt from the payment of tax on its taxable income under section 49 of that Act is a prescribed corporation. R.R.O. 1990, Reg. 1020, s. 11.
12. A corporation shall be deemed to be controlled by another person or corporation if the other person or corporation, either alone or together with an associate or associates or affiliated corporation or corporations or any combination thereof, has the right by agreement or otherwise to nominate or elect more than 50 per cent of the board of directors or more than 50 per cent of the executive committee of the board of directors of the first-mentioned corporation. R.R.O. 1990, Reg. 1020, s. 12.
13. The Minister may at any time require a small business development corporation to provide sufficient information to establish to the Minister’s satisfaction that the small business development corporation has complied with the provisions of the Securities Act in relation to the means by which the corporation is capitalized. R.R.O. 1990, Reg. 1020, s. 13.
14. For the purposes of subclause 9 (1) (d) (v) of the Act, an investment by a small business development corporation in a small business shall not be an eligible investment if the small business uses the investment for the purpose of, (a) repayment of a loan advanced to the small business by its shareholders, by persons who were its shareholders at the time the loan funds were advanced, by associates of its shareholders, or by persons who were associates of its shareholders at the time the loan funds were advanced, except for a loan advanced by a small business development corporation; (b) payment of dividends; (c) funding all or part of the purchase price of any tangible and intangible assets acquired by a small business from a sole proprietorship, partnership, corporation or joint venture, where the assets include all or substantially all the assets (exclusive of trade accounts receivable and investments) of a business carried on by the vendor, unless the Minister is satisfied that the shareholders of the small business who are not small business development corporations are investing sufficient additional equity capital in the small business to equal or exceed the amount by which the purchase price of all assets acquired exceeds the difference between the amount of the liabilities of the vendor at the time of the sale of the assets and the aggregate of, (i) amounts loaned or advanced to the vendor by any of its shareholders, partners or associates and by associates of any shareholders and partners of the vendor, and (ii) liabilities of the vendor which in the opinion of the Minister were incurred for the purpose of reducing the capital investment that would otherwise be required by shareholders of the small business under this clause; (d) repayment of any debt which in the opinion of the Minister was incurred directly or indirectly for a purpose set out in clause (a), (b) or (c); or (e) payment of, (i) a debt owed by the small business, including amounts payable on the purchase of assets, goods or services and the amount of any loans and advances owed by the small business, where the debt is owed to a shareholder or an associate of a shareholder of the small business development corporation, or (ii) a debt which in the opinion of the Minister was incurred directly or indirectly for the purposes of payment of a debt described in subclause (i), unless, (iii) before the date the small business incurred the debt, the Minister has consented in writing to the use of the investment for the purposes of the payment, (iv) the small business development corporation is widely held and the debt arose as a result of the purchase or sale of goods or services under the circumstances referred to in subsection 12 (2) of the Act, or (v) the Minister is satisfied before the payment of the debt that additional equity capital in an amount equal to or exceeding the amount of the payment is being invested in the small business by any of its shareholders that is not a small business development corporation. R.R.O. 1990, Reg. 1020, s. 14.
15. (1) For the purpose of subsection 8 (3) of the Act, upon the redemption, purchase or other acquisition of an equity share issued by a small business development corporation in consideration for equity capital in relation to which a grant or tax credit has been paid or allowed at the rate of 30 per cent, the amount of the payment from the trust fund to a shareholder of the small business development corporation is the amount obtained by subtracting the aggregate of, (a) any portion of the amount payable by the small business development corporation to the Minister under section 24 of the Act by reason of the redemption, purchase or acquisition of those equity shares that remains unpaid at the time of the payment from the trust fund; and (b) an amount equal to the amount of interest earned on the amount paid into the trust fund on the issue of that equity share from the date of issue of the equity share or the date of registration of the small business development corporation under the Act, whichever is later, from 30 per cent of the amount for which that equity share was originally issued or 30 per cent of the consideration payable by the small business development corporation to the shareholder on the redemption, purchase or other acquisition of that share, whichever is the lesser. R.R.O. 1990, Reg. 1020, s. 15 (1). (2) For the purpose of subsection 8 (3) of the Act, upon the redemption, purchase or other acquisition of an equity share issued by a small business development corporation in consideration for equity capital in relation to which a grant or tax credit has been paid or allowed at the rate of 25 per cent, the amount of the payment from the trust fund to a shareholder of the small business development corporation is the amount obtained by subtracting the aggregate of, (a) any portion of the amount payable by the small business development corporation to the Minister under section 24 of the Act by reason of the redemption, purchase or acquisition of those equity shares that remains unpaid at the time of the payment from the trust fund; and (b) an amount equal to the amount of interest earned on the amount paid into the trust fund on the issue of that equity share from the date of issue of that equity share or the date of registration of the small business development corporation under the Act, whichever is later, from 25 per cent of the amount for which that equity share was originally issued or 25 per cent of the consideration payable by the small business development corporation to the shareholder on the redemption, purchase or other acquisition of that share, whichever is the lesser. R.R.O. 1990, Reg. 1020, s. 15 (2). (3) For the purposes of subsections (1) and (2), an amount paid from the trust fund to a shareholder shall be considered to form part of the gross consideration payable to the shareholder on the redemption, purchase or other acquisition of the share. R.R.O. 1990, Reg. 1020, s. 15 (3).
16. (1) For the purposes of subsection 7 (4) and subclause 9 (1) (a) (i) of the Act, an investment by a small business development corporation is an investment in a small business primarily located in northern and eastern Ontario where the permanent establishment of the small business referred to in subclause 9 (1) (a) (i) of the Act is located in, (a) the County of Dundas, Frontenac, Glengarry, Grenville, Haliburton, Hastings, Lanark, Leeds, Lennox and Addington, Northumberland, Peterborough, Prescott, Prince Edward, Renfrew, Russell or Victoria; (b) the Town of Newcastle; (c) The Regional Municipality of Ottawa-Carleton; or (d) the Territorial Districts of Algoma, Cochrane, Kenora, Manitoulin, Muskoka, Nipissing, Parry Sound, Rainy River, Sudbury, Thunder Bay or Timiskaming. R.R.O. 1990, Reg. 1020, s. 16 (1). (2) For the purposes of subsection 7 (4) of the Act, an investment by a small business development corporation shall be considered to be an investment in a small business that is a new enterprise if the small business did not carry on business before the date of the investment or commenced its business operations within the twelve months immediately preceding that date. R.R.O. 1990, Reg. 1020, s. 16 (2). (3) Subsection (2) does not apply where the small business has acquired or acquires within the twelve months following the date of an investment by the small business development corporation, a significant portion of its business assets from a person who has carried on within the twelve months immediately preceding the acquisition, the same or a similar business to the business carried on or to be carried on by the small business unless such acquisition is from a receiver, receiver-manager, a trustee in bankruptcy or a secured creditor selling pursuant to a right of sale under a security agreement. R.R.O. 1990, Reg. 1020, s. 16 (3).
17. For the purposes of clause 20 (2) (b) of the Act, an applicant is ordinarily resident in Ontario if the applicant, (a) is a Canadian citizen or has been lawfully admitted to Canada for permanent residence without qualification or condition; and (b) has resided or sojourned in Ontario for a period of at least 183 days in the 365 days immediately preceding the date on which the determination is to be made. R.R.O. 1990, Reg. 1020, s. 17.
18. For the purposes of paragraph 4 of section 24 of the Act, an amount in respect of a “reduction of stated capital” or of a “reduction to the stated capital accounts” shall include any amount paid or payable to the Minister under that section. R.R.O. 1990, Reg. 1020, s. 18.