106 (1) If a corporation was a mutual fund corporation throughout a taxation year and a return of its income for the year has been filed within three years after the end of the year, the Ontario Minister, (a) may, on sending the notice of assessment for the year, pay an Ontario capital gains refund for the year to the corporation; and (b) shall, with all due dispatch, pay the Ontario capital gains refund after mailing the notice of assessment if the corporation applies in writing for it within the period in which the Ontario Minister is allowed to assess tax payable under Part III by the corporation for the year.  2007, c. 11, Sched. A, s. 106 (1). Ontario capital gains refund (2) The amount of a corporation’s Ontario capital gains refund for a taxation year is the lesser of the corporation’s Ontario refundable capital gains tax on hand at the end of the year and the amount calculated using the formula, 0.5 × A × B × (C + D) in which, “A” is the corporation’s basic rate of tax for the year, “B” is the corporation’s Ontario allocation factor for the year, “C” is the total of all dividends paid by the corporation in the period commencing 60 days after the beginning of the taxation year and ending 60 days after the end of the taxation year that are capital gains dividends for that year for the purposes of section 131 of the Federal Act, and “D” is the amount of the corporation’s capital gains redemptions for the year as determined for the purposes of section 131 of the Federal Act. 2007, c. 11, Sched. A, s. 106 (2). Ontario refundable capital gains tax on hand (3) A corporation’s Ontario refundable capital gains tax on hand at the end of a taxation year is the amount calculated using the formula, (E – F) + G – H in which, “E” is the amount of the corporation’s refundable capital gains tax on hand at the end of its last taxation year ending before January 1, 2009, as determined for the purposes of section 48 of the Corporations Tax Act, “F” is the amount of the corporation’s capital gains refund for its last taxation year ending before January 1, 2009, as determined for the purposes of section 48 of the Corporations Tax Act, “G” is the sum of all amounts each of which is an amount that is in respect of the taxation year or a previous taxation year ending after December 31, 2008 throughout which the corporation was a mutual fund corporation, and that is the least of, (a) the amount determined by multiplying the corporation’s basic rate of tax for that year by the product calculated by multiplying its taxable income for that year by its Ontario allocation factor for that year, (b) the amount determined by multiplying the corporation’s basic rate of tax for that year by the product calculated by multiplying its taxed capital gains for that year, as determined under subsection 130 (3) of the Federal Act, by its Ontario allocation factor for that year, and (c) the amount, if any, by which the amount of tax payable under Division B of Part III for that year exceeds the amount deemed by section 84 to be paid on account of the corporation’s tax payable under this Act for the year, and “H” is the sum of all amounts each of which is its capital gains refund under this section for a previous taxation year ending after December 31, 2008 throughout which the corporation was a mutual fund corporation. 2007, c. 11, Sched. A, s. 106 (3). Amalgamations (4) If paragraph 87 (2) (bb) of the Federal Act applies for a taxation year to a corporation that is referred to as a new corporation in section 87 of that Act, the corporation’s Ontario refundable capital gains tax on hand at the end of the year shall be determined by adding to each amount determined as “E”, “F”, “G” or “H” in subsection (3) the corresponding amount as determined immediately before the amalgamation of each corporation that is both a predecessor corporation in respect of the corporation for the purposes of that section and either a mutual fund corporation or an investment corporation.  2007, c. 11, Sched. A, s. 106 (4). Investment corporations (5) If a corporation is an investment corporation throughout a taxation year, but is not a mutual fund corporation throughout the year, subsections (1), (2) and (3) apply in respect of the corporation for the year as if, (a) the corporation had been a mutual fund corporation throughout that and all previous taxation years ending after 1971 throughout which it was an investment corporation; and (b) the corporation’s capital gains redemption were nil for that and all previous taxation years ending after 1971 throughout which it would not have been a mutual fund corporation except for clause (a).  2007, c. 11, Sched. A, s. 106 (5). Application of refund to another liability (6) Instead of making a refund that might otherwise be made under subsection (1), the Ontario Minister may, if the corporation is liable or about to become liable to make any payment under this Act, the Federal Act or under any similar Act of another province, apply the amount that would otherwise be refunded to that other liability and notify the corporation of that action.  2007, c. 11, Sched. A, s. 106 (6). Interpretation (7) For the purposes of clause (1) (b), the period in which the Ontario Minister is allowed to assess tax payable under Part III by a corporation for a taxation year is the period of time that would be allowed under subsection 152 (4) of the Federal Act, as it applies for the purposes of this Act, if that subsection were read without reference to paragraph 152 (4) (a).  2007, c. 11, Sched. A, s. 106 (7). Part VIi   Special Cases Tax Shelters and Avoidance