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Land Transfer Tax Act

R.S.O. 1990, CHAPTER L.6

Consolidation Period: From May 14, 2008 to the e-Laws currency date.

Last amendment: 2008, c. 7, Sched. K.

SKIP TABLE OF CONTENTS

CONTENTS

Interpretation

1.  (1)  In this Act,

“convey” includes the granting, assigning, releasing, surrendering, leasing or disposing of land in Ontario, agreeing to sell land in Ontario, or the giving of an option upon or with respect to any land in Ontario, or the registration of a caution or notice of any kind signifying the existence of an unregistered instrument or writing by which land is conveyed, whether the effect of any of the foregoing is to bring into existence an interest of any kind in land or is only for the purpose of giving effect to or formal recognition to any interest of whatsoever kind that theretofore existed in land, but “convey” does not include any transfer of land for the purpose only of securing a debt or loan, or any transfer by a creditor for the purpose only of returning land that had been used as security for a debt or loan; (“céder”)

“conveyance” includes any instrument or writing by which land is conveyed and includes a final order of foreclosure under any mortgage or charge affecting land and a caution or notice of any kind in writing signifying the existence of any instrument or writing by which land is conveyed; (“cession”)

“designated collector” means a person designated under subsection 5.1 (1); (“percepteur désigné”)

“electronic document” means an electronic document as defined by section 17 of the Land Registration Reform Act; (“document électronique”)

“land” includes lands, tenements and hereditaments and any estate, right or interest therein, a structure to be constructed on land as part of an arrangement relating to a conveyance of land, a leasehold interest or estate, the interest of an optionee, the interest of a purchaser under an agreement to sell land, or goodwill attributable to the location of land or to the existence thereon of any building or fixture, and fixtures; (“bien-fonds”)

“land registrar” means a land registrar to whom a conveyance is tendered for registration; (“registrateur”)

“Minister” means the Minister of Finance; (“ministre”)

“notice of any kind” includes a recital or reference made in any registered instrument; (“avis quelconque”)

“Ontario home ownership savings plan” means an Ontario home ownership savings plan under the Ontario Home Ownership Savings Plan Act; (“régime d’épargne-logement de l’Ontario”)

“Ontario home ownership savings plan tax credit”, of an individual for a taxation year, means the deduction allowed to the individual under subsection 8 (4) of the Income Tax Act for the taxation year of the individual as determined under that Act; (“crédit d’impôt relatif au régime d’épargne-logement de l’Ontario”)

“prescribed” means prescribed by regulations made under this Act; (“prescrit”)

“registration”, of a conveyance, means registration under the Land Titles Act or the Registry Act, and “registered” has a corresponding meaning; (“enregistrement”, “enregistré”)

“residential” means, when used in respect of land, the land subjacent to a building that is the main and principal residence of the occupants, whether as owners or tenants, and includes all immediately contiguous lands necessary and used for such residence; (“affecté à l’habitation”)

“single family residence” means a unit or proposed unit under the Condominium Act or a structure or part of a structure that is designed for occupation as the residence of a family, including dependants or domestic employees of a member of the family, whether or not rent is paid to occupy any part of it and whether or not the land on which it is situated is zoned for residential use and,

(a) includes such a residence that is to be constructed as part of the arrangement relating to a conveyance, and

(b) does not include such a residence that is constructed or is to be constructed on agricultural land that is eligible to be classified in the farm property class prescribed under the Assessment Act; (“habitation unifamiliale”)

“spouse” means spouse as defined in section 29 of the Family Law Act; (“conjoint”)

“tax” means the tax imposed by this Act and includes all penalties and interest that are or may be added to a tax under this Act; (“droits”)

“transferee” includes a person to whom land is conveyed and any person whose interest in land is increased, created or given effect to as the result of a conveyance; (“cessionnaire”)

“transferor” includes any person making a conveyance of land to a transferee; (“cédant”)

“value of the consideration” includes,

(a) the gross sale price or the amount expressed in money of any consideration given or to be given for the conveyance by or on behalf of the transferee and the value expressed in money of any liability assumed or undertaken by or on behalf of the transferee as part of the arrangement relating to the conveyance and the value expressed in money of any benefit of whatsoever kind conferred directly or indirectly by the transferee on any person as part of the arrangement relating to the conveyance,

(b) in the case of a final order of foreclosure under any mortgage or charge affecting land, the lesser of,

(i) the value of the consideration determined under clause (a) plus the amount owed under the mortgage or charge at the time it is foreclosed, including principal, interest and all other costs and expenses other than municipal taxes, secured by the mortgage or charge and owing at the time plus the amount owing similarly calculated under any mortgage or charge that is subsequent in priority to the mortgage or charge in respect of which the final order of foreclosure is made and that is held by the mortgagee or chargee in whose favour the final order of foreclosure that is registered is made, or

(ii) an amount established to the satisfaction of the Minister to be equal to the fair market value of the land that is subject to the mortgage or charge,

(b.1) in the case of a conveyance of land to the mortgagee or chargee under a mortgage or charge affecting the land when the conveyance is given in satisfaction of the amount owed under the mortgage or charge, the lesser of,

(i) the value of the consideration determined under clause (a) plus the amount owed under the mortgage or charge at the time the conveyance is made, including principal, interest and all other costs or expenses other than municipal taxes, secured by the mortgage or charge and owing at the time plus the amount owing similarly calculated under any other mortgage or charge that is subsequent in priority to the mortgage or charge in respect of which the conveyance is made, if that mortgage or charge is held by the mortgagee or chargee to whom the conveyance is made, or

(ii) an amount established to the satisfaction of the Minister to be equal to the fair market value of the land that is subject to the conveyance,

(c) in the case where a lease of land, a transfer of the interest of a lessee under a lease of land, or a notice of any kind in writing signifying the existence of an unregistered lease of land or of an unregistered transfer of the interest of a lessee under a lease of land is not exempt from tax by virtue of subsection (6), the fair market value, ascertained as at the time of the tender or submission for registration, of the land to which the lease extends or of a smaller portion of such land if only such smaller portion is conveyed,

(d) in the case of a caution or notice of any kind in writing signifying the existence of any unregistered instrument or writing by which land is conveyed and that is not a notice in writing described in clause (c), the value of the consideration determined under clause (a) or (b) for the land conveyed by the unregistered instrument or writing that is referred to in such caution or notice in writing that is not a notice in writing described in clause (c),

(e) in the case of a conveyance of land from a trustee (whether or not the trustee is so described in the conveyance) to a person to whom or for whose benefit any equitable or beneficial interest in the land has been transferred by a conveyance or conveyances that have not been registered, the value of the consideration determined under clauses (a) to (d), whichever is applicable, in respect of the unregistered conveyances made to such person,

(f) in the case of a conveyance of land from a trustee to another trustee (whether or not either trustee is so described in the conveyance) where,

(i) the person to whom or for whose benefit any equitable or beneficial interest in the land is held is not the same person to whom or for whose benefit any equitable or beneficial interest in the land was held by the trustee making the conveyance when that trustee first acquired legal interest in the land, and

(ii) valuable consideration has been given by the transferee of an equitable or beneficial interest for the transfer of any equitable or beneficial interest in the land held by the trustee making the conveyance while that trustee was the holder of the legal interest in the land,

the fair market value, ascertained at the time of the tender or submission for registration, of the land to which the conveyance extends, or

(g) in the case of a conveyance of land to a corporation where any part of the consideration consists of the allotment and issuance of the corporation’s shares or in the case of a conveyance of land from a corporation to any of its shareholders the fair market value, ascertained at the time of the tender or submission for registration, of the land to which the conveyance extends. (“valeur de la contrepartie”) R.S.O. 1990, c. L.6, s. 1 (1); 1994, c. 18, s. 4 (1-3); 1996, c. 18, s. 7 (1, 2); 1996, c. 29, s. 16 (1); 1997, c. 10, s. 8 (1, 2); 1999, c. 6, s. 32 (1); 2000, c. 42, s. 67; 2002, c. 22, s. 134; 2004, c. 31, Sched. 21, s. 1 (1, 2); 2005, c. 5, s. 36 (1).

Tendering for registration

(1.1)  For the purposes of this Act, a conveyance that is an electronic document is tendered for registration when it is submitted for registration in accordance with Part III of the Land Registration Reform Act, and a conveyance that is not an electronic document is tendered for registration when it is presented for registration at a land registry office. 2004, c. 31, Sched. 21, s. 1 (3).

Reduction of consideration, land taken under statutory authority

(2)  Where it is established to the satisfaction of the Minister that land is being acquired by a person for the purpose of replacing land that was taken from the person under statutory authority, that was sold by the person to a person by whom notice of an intention to take the land under statutory authority was given, or that was sold by the person to a person having the power to take the land under statutory authority, and it is reasonable to assume in the case where the land is sold that, had the land not been sold, it would have been taken under statutory authority by the person to whom it is sold, the value of the consideration for the land being acquired shall be reduced by an amount equal to the compensation or proceeds of sale reasonably attributable to the land that was taken or sold. 1998, c. 5, s. 29.

Same, leasehold and freehold interests

(3)  Where a person entitled to the leasehold interest in land acquires the freehold interest therein, the value of the consideration for the conveyance to the person of the freehold interest may be reduced by the amount of the value of the consideration for the conveyance by which the person acquired the leasehold interest if the value of that consideration was determined under clause (c) of the definition of “value of the consideration” in subsection (1) and tax was computed and paid with respect to the value of that consideration so determined, but the reduction shall not exceed the value of the consideration for the conveyance of the freehold interest. 1998, c. 5, s. 29.

(4)  Repealed: 1997, c. 10, s. 8 (3).

(5)  Repealed: 1997, c. 10, s. 8 (4).

No tax on certain leases

(6)  Despite any other provision of this Act, no tax is payable on the tender or submission for registration of a conveyance that is a lease of land, the transfer of the interest of a lessee under a lease of land, or a notice of any kind in writing signifying the existence of a lease of land or of a transfer of the interest of a lessee under a lease of land if the lease, at the time the lease or transfer or notice of either of them is tendered or submitted for registration, is for an unexpired term that cannot exceed 50 years, including any renewals or extensions of the term provided for in the lease or in a separate option to lease or other document entered into as part of the arrangement relating to the lease (whether or not the lessee and the optionee or person named in the document are the same persons). 1994, c. 18, s. 4 (4); 1996, c. 18, s. 7 (3).

(7)  Repealed: 1997, c. 10, s. 8 (5).

Exemptions under other Acts

1.1  No person otherwise subject to tax under this Act is exempt therefrom by reason of an exemption granted to the person, or to or in respect of the personal or real property of the person, by or under any other Act, unless the other Act expressly mentions this Act. 2001, c. 23, s. 142.

Tax

2.  (1)  Every person who tenders for registration in Ontario a conveyance by which any land is conveyed to or in trust for a transferee shall pay when the conveyance is tendered for registration or before it is tendered for registration,

(a) a tax computed at the rate of,

(i) one-half of 1 per cent of the value of the consideration for the conveyance up to and including $55,000,

(ii) 1 per cent of the value of the consideration which exceeds $55,000 up to and including $250,000, and

(iii) 1.5 per cent of the value of the consideration which exceeds $250,000; and

(b) if the value of the consideration for the conveyance exceeds $400,000 and the conveyance is a conveyance of land that contains at least one and not more than two single family residences, an additional tax of one-half of 1 per cent of the amount by which the value of the consideration exceeds $400,000. 1997, c. 10, s. 9 (1); 2004, c. 31, Sched. 21, s. 2 (1).

Apportionment of consideration

(2)  Where, in respect of a conveyance of land,

(a) Repealed: 1997, c. 10, s. 9 (2).

(b) the value of the consideration for the conveyance exceeds $400,000; and

(c) a part of the land being conveyed is used for a purpose other than residential purposes,

the Minister may, to the extent that he or she considers it practicable, determine what amount of the value of the consideration for the conveyance is reasonably attributable to the land used in connection with a single family residence, and the person tendering the conveyance for registration is, despite subsection (1), liable to the additional tax of one-half of 1 per cent only upon the amount by which the value of the consideration determined by the Minister to be attributable to land used in connection with a single family residence exceeds $400,000. R.S.O. 1990, c. L.6, s. 2 (2); 1997, c. 10, s. 9 (2).

Conveyance after tax deferral and cancellation

(3)  If tax in respect of the disposition of a beneficial interest in land has been deferred under subsection 3 (9) and cancelled under subsection 3 (11), the value of the consideration on the tender or submission for registration of a conveyance that transfers legal title to the land to the beneficial owner whose tax liability was cancelled under subsection 3 (11) or to a trustee for the beneficial owner shall be determined under clause (a), (b), (b.1), (c) or (g) of the definition of “value of the consideration” in subsection 1 (1) as if the value of the consideration were being determined in respect of the disposition of the beneficial interest in the land. 2006, c. 33, Sched. P, s. 1.

(4)  Repealed: 1997, c. 10, s. 9 (4).

(4.1)  Repealed: 1997, c. 10, s. 9 (5).

(5)  Repealed: 1997, c. 10, s. 9 (6).

(6)  Repealed: 1997, c. 10, s. 9 (7).

Tax to be payable on one registration only

(7)  Where the same conveyance may be registered in more than one office under the registry system, in more than one office under the land titles system, or under both the registry system and the land titles system, the tax is payable only once in respect of the first of such conveyances tendered for registration and if the Minister or a land registrar is satisfied that the value of the consideration for a conveyance that has been registered is the value of the consideration for a subsequently registered conveyance that does not create with respect to the land conveyed any beneficial interest therein in any person beyond that evidenced by the first mentioned conveyance, and if the conveyances are made as part of the same transaction, tax is payable only once and upon the value of the consideration for the first of such conveyances that was registered. R.S.O. 1990, c. L.6, s. 2 (7); 2004, c. 31, Sched. 21, s. 2 (2).

Exemption

(8)  No tax is payable where the only transferee in a conveyance that is tendered for registration is the Crown or a Crown agency within the meaning of the Crown Agency Act. R.S.O. 1990, c. L.6, s. 2 (8).

Minister’s certification, electronic registration

(9)  A conveyance tendered for registration as an electronic document may be submitted for registration without the payment of tax and without the information listed in paragraphs 1 to 4 of subsection 5 (1) if the following conditions are satisfied:

1. The Minister or a person authorized in writing by the Minister is satisfied that no tax is payable, that all tax has been paid or that security for the payment of the tax has been furnished to the Minister in a form and of a kind that is acceptable to the Minister.

2. The Minister or authorized person has indicated to the Director of Land Registration appointed under subsection 6 (1) of the Registry Act, in a manner approved by the Director, that the tax has been paid or that no tax is payable. 2004, c. 31, Sched. 21, s. 2 (3).

Same, other registration

(10)  A conveyance tendered for registration otherwise than as an electronic document may be registered without the payment of tax and without the production of the affidavit required by section 5 if the following conditions are satisfied:

1. The Minister or a person authorized in writing by the Minister is satisfied that no tax is payable, that all tax has been paid or that security for the payment of the tax has been furnished to the Minister or to the land registrar in a form and of a kind that is acceptable to the Minister.

2. The Minister or authorized person has indicated over his or her signature on the instrument that the tax has been paid or that no tax is payable. 2004, c. 31, Sched. 21, s. 2 (3).

2.1  Repealed: 2004, c. 31, Sched. 21, s. 3.

Person liable for the tax

2.2  Every person who immediately after the registration of a conveyance has a beneficial interest in the land that was acquired or increased as a result of a conveyance or as part of an arrangement relating to the conveyance is liable for the tax payable under subsection 2 (1), unless the person has previously paid tax on the acquisition of or increase in beneficial interest. 1996, c. 29, s. 18; 2004, c. 31, Sched. 21, s. 4.

Multiple conveyances

2.3  (1)  Where land is conveyed by more than one conveyance and the Minister is of the opinion that one of the reasons for conveying the land by more than one conveyance is to reduce the total amount of tax payable under this Act in respect of the conveyances of the land to an amount less than the amount of tax that would have been payable if the land had been conveyed by one conveyance, the total amount of tax payable under this Act in respect of the conveyances shall not be less than the amount of tax that would have been payable if the land had been conveyed by one conveyance. 1996, c. 29, s. 18.

Multiple dispositions of beneficial interest

(2)  Where a disposition of a beneficial interest in land occurs by means of more than one disposition of a beneficial interest in the land and the Minister is of the opinion that one of the reasons for disposing of the beneficial interest by more than one disposition is to reduce the total amount of tax payable under this Act in respect of the dispositions to an amount less than the amount of tax that would have been payable if the beneficial interest in the land had been disposed of in one disposition, the total amount of tax payable under this Act in respect of the dispositions shall not be less than the amount of tax that would have been payable if the beneficial interest had been disposed of by one disposition. 1996, c. 29, s. 18.

Disposition of beneficial interest in land

3.  (1)  For the purposes of this section, a disposition of a beneficial interest in land includes,

(a) a sale, transfer or assignment, however effected, of any part of a beneficial interest in land; and

(b) any change in entitlement to or any accretion to a beneficial interest in land,

but does not include,

(c) Repealed: 1997, c. 10, s. 11.

(d) a transfer of a beneficial interest in land which occurs by reason of the death of the owner of the interest, if the transfer is not required to be made under the terms of an agreement enforceable by or against the person legally or beneficially entitled to the interest immediately following the death of the owner;

(e) a transfer or assignment of a beneficial interest in land by a debtor to a creditor for the purpose only of providing security for a debt or loan and a transfer or reassignment by the creditor to the debtor of the security;

(f) a lease of land or a transfer of the interest of a lessee under a lease of land if, at the time of the disposition, the unexpired term of the lease cannot exceed 50 years, including any renewals or extensions of the term provided for in the lease or in a separate option to lease or other document entered into as part of the arrangement relating to the lease (whether or not the lessee and the optionee or person named in the document are the same persons); or

(g) a transfer or assignment of a beneficial interest in land arising on the execution of an agreement of purchase and sale of an interest in the land, or by a subsequent assignment of such beneficial interest by a purchaser under the agreement or by an assignee thereof, where,

(i) the value of the consideration specified in the agreement has not been paid to or for the benefit of the transferor, or

(ii) the liability for the value of the consideration specified in the agreement has not been assumed by or on behalf of the transferee. R.S.O. 1990, c. L.6, s. 3 (1); 1994, c. 18, s. 4 (6); 1997, c. 10, s. 11.

Tax on disposition of a beneficial interest

(2)  If there is a disposition of a beneficial interest in land, tax at the rates otherwise determined under section 2 is payable to the Minister on the thirtieth day after the date of the disposition as if the disposition were a conveyance of land tendered for registration. R.S.O. 1990, c. L.6, s. 3 (2); 1994, c. 18, s. 4 (5).

By whom payable

(3)  The tax under subsection (2) is payable by every person who acquires a beneficial interest in land or whose beneficial interest in land is increased as a result of the disposition. R.S.O. 1990, c. L.6, s. 3 (3).

Multiple interests

(4)  If more than one person acquires a beneficial interest in land, or more than one person’s beneficial interest in land is increased as a result of the disposition, each of them is liable to pay only that percentage of the tax otherwise payable under this section that reflects their proportional share of the acquisition of or increase in beneficial interest. R.S.O. 1990, c. L.6, s. 3 (4).

Exceptions

(5)  No tax is payable by virtue of this section if,

(a) an instrument evidencing the disposition of the beneficial interest in land is tendered for registration within 30 days after the date of the disposition and the tax payable under subsection 2 (1) on the registration of the instrument has been paid; or

(a.1) Repealed: 2004, c. 31, Sched. 21, s. 5 (2).

(b) the disposition of the beneficial interest in land is prescribed as being exempt. R.S.O. 1990, c. L.6, s. 3 (5); 1996, c. 18, s. 9 (1); 2004, c. 31, Sched. 21, s. 5 (1, 2).

Tax only paid once

(6)  If a person who has paid the tax under this section tenders for registration an instrument evidencing the disposition, no tax is payable under subsection 2 (1) if the Minister is satisfied that the instrument,

(a) does not transfer any beneficial interest in land to any person other than the person who has paid the tax on the disposition under this section; and

(b) does not increase any person’s beneficial interest in land in excess of the beneficial interest transferred by the disposition. 1996, c. 18, s. 9 (2); 2004, c. 31, Sched. 21, s. 5 (3).

Verification of Minister

(7)  If the tax payable under this section has been paid, or no tax is payable under this Act, the Minister, or a person authorized in writing by the Minister, shall so verify,

(a) over his or her signature on the instrument; or

(b) in the manner approved by the Director of Land Registration, appointed under subsection 6 (1) of the Registry Act, where an electronic document is submitted for registration. 1996, c. 18, s. 9 (2).

Registration of instrument without payment of tax, etc.

(8)  Where an instrument has been verified under subsection (7), it may be registered without the payment of tax under subsection 2 (1) and without the production of the statement or affidavit required by section 5. 2004, c. 31, Sched. 21, s. 5 (4).

Deferred payment

(9)  If the disposition of a beneficial interest in land is from one corporation to another corporation, each of which is an affiliate of the other immediately before and at the time of the disposition, the Minister may defer the payment of the tax payable by virtue of this section by the corporation acquiring the beneficial interest if,

(a) before the thirtieth day after the date of disposition of the beneficial interest in the land, the corporation applies to the Minister for the deferral and submits a written undertaking satisfactory to the Minister, undertaking that for a period of at least thirty-six consecutive months immediately following the date of the disposition,

(i) the corporation making the disposition and the corporation acquiring the beneficial interest on the disposition will continue to be affiliates of each other, and

(ii) the beneficial interest in the land will continue to be owned by the corporation acquiring the beneficial interest on the disposition or by a corporation that is an affiliate of that corporation and with the corporation which made the disposition of the beneficial interest in the land;

(b) security for the tax in a form and of a kind acceptable to the Minister is furnished to the Minister; and

(c) no conveyance or instrument or electronic document evidencing the disposition has been registered. R.S.O. 1990, c. L.6, s. 3 (9); 1996, c. 18, s. 9 (3); 2004, c. 31, Sched. 21, s. 5 (5).

Extension of time

(10)  The Minister may extend the time for applying for a deferral and submitting the undertaking referred to in subsection (9) if the Minister is satisfied that any delay by the corporation in applying for the deferral or submitting the undertaking was not for the purpose of attempting to delay, avoid or evade the payment of the tax. R.S.O. 1990, c. L.6, s. 3 (10).

Cancellation to tax

(11)  The Minister shall return the security furnished in respect of the deferral granted under subsection (9) and the amount of tax deferred is no longer owing by reason of this section if,

(a) the Minister is of the opinion that the undertaking given under subsection (9) has been satisfied and no conveyance or instrument evidencing the disposition of the beneficial interest in land has been registered;

(b) a conveyance or instrument or electronic document evidencing the disposition of the beneficial interest in land to the corporation has been registered and the tax payable under subsection 2 (1) has been paid; or

(c) there has been a disposition of the beneficial interest in the land, or a conveyance of the land, by the corporation, or by an affiliate of the corporation, to a person who is not an affiliate of the corporation and tax has been paid under this Act in respect of that disposition or on registration of the conveyance, as applicable. R.S.O. 1990, c. L.6, s. 3 (11); 1996, c. 18, s. 9 (4); 2004, c. 31, Sched. 21, s. 5 (6, 7).

Dissolution or winding-up

(12)  For the purposes of subsection (11), if a corporation was an affiliate of another corporation immediately before winding-up or dissolving, the corporation shall be considered to continue to exist and to be an affiliate of that other corporation for the purpose of determining whether any undertakings given under subsection (9) have been fulfilled with respect to any disposition of a beneficial interest in land made before the winding-up or dissolution of the corporation or in the course of any distribution of property of the corporation on the winding-up or dissolution. R.S.O. 1990, c. L.6, s. 3 (12).

Requirement to pay tax

(13)  Nothing in subsection (9) or (11) relieves any person from the payment of tax under this Act upon the registration of a conveyance which evidences the disposition of a beneficial interest in land. R.S.O. 1990, c. L.6, s. 3 (13).

Registration of instrument evidencing disposition of beneficial interest in land

(13.1)  For the purposes of clauses (9) (c) and (11) (a) and (b), the registration of a conveyance of legal title to the land to the beneficial owner of the land or a trustee for the beneficial owner is deemed to be a conveyance which evidences the disposition of a beneficial interest in land. 2006, c. 33, Sched. P, s. 2 (1).

Affiliate

(14)  For the purposes of this section, a corporation is an affiliate of another corporation if one of them is the subsidiary of the other, if both are subsidiaries of the same corporation or if each of them is controlled by the same person or persons. 2006, c. 33, Sched. P, s. 2 (2).

Same

(15)  The following rules apply for the purposes of determining if corporations are affiliates:

1. A corporation is a subsidiary of another corporation if,

i. it is controlled by,

A. that other,

B. that other and one or more corporations each of which is controlled by that other, or

C. two or more corporations each of which is controlled by that other, or

ii. it is a subsidiary of a corporation that is that other’s subsidiary.

2. A corporation is controlled by another person or corporation or by two or more corporations if,

i. voting securities of the first-mentioned corporation carrying more than 50 per cent of the votes for the election of directors are held, otherwise than by way of security only, by or for the benefit of the other person or corporation or by or for the benefit of the other corporations, and

ii. the votes carried by the voting securities described in subparagraph i are entitled, if exercised, to elect a majority of the board of directors of the first-mentioned corporation.

3. For the purposes of paragraph 2,

i. a person is deemed to own beneficially securities that are beneficially owned by a corporation controlled by the person or by an affiliate of that corporation, and

ii. a corporation is deemed to own beneficially securities that are beneficially owned by its affiliates.

4. Unless the regulations provide otherwise, references in paragraphs 2 and 3 to securities are references to securities within the meaning of the Securities Act. 2006, c. 33, Sched. P, s. 2 (2).

4.  Repealed: 2004, c. 31, Sched. 21, s. 6.

Information and returns

Statement or affidavit re conveyance

5.  (1)  The following information respecting a conveyance shall be provided to the Minister in the form and manner required by subsection (1.1) or (1.2):

1. The true value of the consideration for the conveyance.

2. The true amount in cash and the value of any property or security included in the value of the consideration.

3. The amount or value of any lien or encumbrance subject to which the conveyance is made.

4. Where the value of the conveyance exceeds $400,000, whether the land being conveyed contains at least one and not more than two single family residences.

5. Such other information as may be required by the Minister for the purposes of administering or enforcing this or any other Act. 2004, c. 31, Sched. 21, s. 7 (1).

Same, statement

(1.1)  If the conveyance is tendered for registration as an electronic document, the information shall be provided as a statement in the form and manner approved by the Minister and the statement shall be included as part of the electronic document. 2004, c. 31, Sched. 21, s. 7 (1).

Same, affidavit

(1.2)  If the conveyance is tendered for registration otherwise than as an electronic document, the information shall be provided as an affidavit in the form approved by the Minister and the affidavit shall be filed with the land registrar and attached by the land registrar to the conveyance to which it relates. 2004, c. 31, Sched. 21, s. 7 (1).

Maker of statement or affidavit

(2)  The statement or affidavit required by this section shall be made by,

(a) each transferee to whom or in trust for whom any land is conveyed by the conveyance to which the affidavit relates;

(b) each trustee to whom any land is conveyed and who is shown as a trustee in the conveyance to which the affidavit relates;

(c) each transferee named in the conveyance to which the affidavit relates;

(d) an agent of any person referred to in clause (a), (b) or (c), if the agent is authorized in writing to make the affidavit;

(e) the solicitor acting in the transaction as the solicitor for any person referred to in clause (a), (b) or (c);

(f) the presiding officer authorized to act for a corporation that is a person referred to in clause (a), (b) or (c), or the Vice-President, Manager, Secretary, Director or Treasurer authorized to act for such corporation; or

(g) either of two transferees who are spouses of each other and both of whom are transferees referred to in clause (a), (b) or (c), where the transferee making the affidavit is acting on behalf of the other of such transferees. R.S.O. 1990, c. L.6, s. 5 (2); 1999, c. 6, s. 32 (2); 2004, c. 31, Sched. 21, s. 7 (2); 2005, c. 5, s. 36 (2).

Same

(2.1)  Despite subsection (2), upon application to the Minister by a transferor named in a conveyance, the Minister or a person authorized by the Minister may consent to the transferor making the statement or affidavit required by this section and the transferor may do so if,

(a) the transferor is tendering or submitting the conveyance for registration;

(b) no tax is payable under this Act in respect of the conveyance; and

(c) the transferor satisfies the Minister that the transferor has sufficient information to enable the transferor to make the affidavit or statement. 1996, c. 29, s. 20 (1); 2004, c. 31, Sched. 21, s. 7 (3, 4).

Contents

(3)  The statement or affidavit shall state that the person making it has personal knowledge of the facts stated in it and shall state, where applicable, the capacity in which the person is making the statement or affidavit and the name of any transferee on whose behalf the person is making the statement or affidavit. 2004, c. 31, Sched. 21, s. 7 (5).

Referral to Minister

(4)  If the land registrar is not satisfied that the statement or affidavit sets out the true value of the consideration for the conveyance, he or she may refuse to register the conveyance until the Minister has signified over his or her signature that the Minister is satisfied that the value of the consideration stated in the statement or affidavit is the true value of the consideration. 2004, c. 31, Sched. 21, s. 7 (5).

Exceptions

(5)  Despite subsection (1), the information listed in paragraphs 1 to 4 of subsection (1) is not required for a conveyance tendered for registration as an electronic document and an affidavit is not required for a conveyance tendered for registration otherwise than as an electronic document,

(a) if the only transferee named in the conveyance is Her Majesty in right of Ontario, Her Majesty in right of Canada or a Crown agency within the meaning of the Crown Agency Act, and if no tax is payable under this Act by any person in respect of the conveyance; or

(b) if the conveyance expressly states that it is in trust for only Her Majesty in right of Ontario, Her Majesty in right of Canada or a Crown agency within the meaning of the Crown Agency Act. 1996, c. 29, s. 20 (2); 2004, c. 31, Sched. 21, s. 7 (6).

(5.1)  Repealed: 2004, c. 31, Sched. 21, s. 7 (7).

Exception, certain leases

(6)  The information listed in paragraphs 1 to 4 of subsection (1) is not required for a conveyance if no tax is payable by reason of subsection 1 (6). 2004, c. 31, Sched. 21, s. 7 (8).

Idem

(7)  Every person liable to pay tax under section 3 shall deliver a return to the Minister, in a form approved by the Minister, on or before the day when the tax is payable under that section and shall remit the tax payable with the return. R.S.O. 1990, c. L.6, s. 5 (7).

Idem

(8)  Every person who holds a legal interest in land in trust for any other person shall, within thirty days of becoming aware of any disposition of a beneficial interest in land to which section 3 applies, deliver to the Minister a return in a form approved by the Minister setting out the particulars of the disposition and such other information as the Minister may require for the purpose of determining the tax liability under this Act. R.S.O. 1990, c. L.6, s. 5 (8).

More than one trustee

(9)  If a legal interest in land is held in trust for another person by more than one trustee, the return required to be delivered under subsection (8) may be made by one or more of the trustees on behalf of all of the trustees. R.S.O. 1990, c. L.6, s. 5 (9).

(10)  Repealed: 2004, c. 31, Sched. 21, s. 7 (9).

(11)  Repealed: 2004, c. 31, Sched. 21, s. 7 (10).

(11.1)  Repealed: 2004, c. 31, Sched. 21, s. 7 (11).

Extension of time for returns

(12)  The Minister may extend the time for delivering the return required under subsection (7) or (8) either before or after the time for delivering it has expired. R.S.O. 1990, c. L.6, s. 5 (12); 1994, c. 18, s. 4 (8); 1997, c. 10, s. 12 (4).

(13)  Repealed: 2004, c. 31, Sched. 21, s. 7 (12).

(14)  Repealed: 1997, c. 10, s. 12 (6).

(15)  Repealed: 1997, c. 10, s. 12 (6).

(16)  Repealed: 1997, c. 10, s. 12 (6).

(17)  Repealed: 1994, c. 18, s. 4 (10).

Designated collectors

5.1  (1)  The Minister may, in writing, designate one or more persons to collect the tax payable under this Act with respect to conveyances tendered for registration as electronic documents, and may attach such conditions and restrictions to a designation as the Minister considers appropriate. 2004, c. 31, Sched. 21, s. 8.

Status

(2)  Every designated collector is an agent of the Minister for the purposes of collecting and remitting the tax imposed by this Act with respect to conveyances tendered for registration as electronic documents. 2004, c. 31, Sched. 21, s. 8.

Security

(3)  The Minister shall demand security in a form acceptable to the Minister from every designated collector in an amount not less than the equivalent of an average of one month’s tax collectable by the designated collector calculated for the 12-month period immediately preceding the date of the Minister’s demand or $1 million, whichever is greater. 2004, c. 31, Sched. 21, s. 8.

Same

(4)  Upon receiving the Minister’s demand for security under subsection (3), the designated collector shall forthwith furnish the security. 2004, c. 31, Sched. 21, s. 8.

Same

(5)  The Minister may, at any time, increase or decrease the amount of security furnished or to be furnished under subsection (4). 2004, c. 31, Sched. 21, s. 8.

Tax held in trust

(6)  All amounts collected or collectable as or on account of tax under this Act by a designated collector,

(a) shall be deemed, despite any security interest in the amount so collected or collectable, to be held in trust for Her Majesty in right of Ontario;

(b) shall be held separate and apart from the designated collector’s property and from property held by any secured creditor that but for the security interest would be the designated collector’s property; and

(c) shall be remitted by the designated collector to the Minister in the manner and at the times provided under this Act. 2004, c. 31, Sched. 21, s. 8.

Exception

(7)  Subsection (6) does not apply in proceedings to which the Bankruptcy and Insolvency Act (Canada) or the Companies’ Creditors Arrangement Act (Canada) applies. 2004, c. 31, Sched. 21, s. 8.

Minister’s certificate

(8)  Every person who, as assignee, liquidator, administrator, receiver, receiver-manager, secured or unsecured creditor or agent of the creditor, trustee or other like person, other than a trustee appointed under the Bankruptcy and Insolvency Act (Canada), takes control or possession of any property of a designated collector shall, before distributing the property or proceeds from the realization of the property under that person’s control, obtain from the Minister a certificate that the amount deemed by subsection (6) to be held in trust, including any interest and penalties payable by the designated collector, has been paid or that security acceptable to the Minister has been given. 2004, c. 31, Sched. 21, s. 8.

No distribution without Minister’s certificate

(9)  Any person described in subsection (8) who distributes any property described in that subsection or the proceeds of the realization of that property without having obtained the certificate required by that subsection is personally liable to Her Majesty in right of Ontario for an amount equal to the amount deemed by subsection (6) to be held in trust, including any interest and penalties payable by the designated collector. 2004, c. 31, Sched. 21, s. 8.

Notice to be given

(10)  A person described in subsection (8) shall give written notice to the Minister of his or her assumption of possession or control of the property within seven days after assuming possession or control. 2004, c. 31, Sched. 21, s. 8.

Minister to advise of indebtedness

(11)  As soon as practicable after receiving a notice under subsection (10), the Minister shall advise the person described in subsection (8) of the amount deemed by subsection (6) to be held in trust, including any interest and penalties. 2004, c. 31, Sched. 21, s. 8.

Agreements

(12)  For the purposes of ensuring and facilitating the collection of tax under this Act, the Minister may enter into such arrangements and agreements with a designated collector as the Minister considers appropriate. 2004, c. 31, Sched. 21, s. 8.

Definitions

(13)  In this section,

“secured creditor” means a person who has a security interest in the property of another person or who acts for or on behalf of that person with respect to the security interest, and includes a trustee appointed under a trust deed relating to a security interest, a receiver or receiver-manager appointed by a secured creditor or by a court on the application of a secured creditor and any other person performing a similar function; (“créancier garanti”)

“security interest” means any interest in property that secures payment or performance of an obligation, and includes an interest created by or arising out of a debenture, mortgage, lien, pledge, charge, deemed or actual trust, assignment or encumbrance of any kind whatsoever or whenever arising, created or deemed to arise or otherwise provided for, but does not include a security interest prescribed by the Minister as one to which subsections (6) to (10) do not apply. (“sûreté”) 2004, c. 31, Sched. 21, s. 8.

Duty to collect tax

5.2  (1)  Every designated collector and land registrar shall collect the tax payable under this Act with respect to conveyances tendered for registration. 2004, c. 31, Sched. 21, s. 8.

Duty to remit tax

(2)  Every designated collector and land registrar shall remit to the Minister, at the times and in the manner required by the Minister, the tax collectable by the designated collector or land registrar. 2004, c. 31, Sched. 21, s. 8.

Duty to provide information

(3)  Every designated collector and land registrar shall give to the Minister and to such other persons as the Minister may specify any information obtained in the course of performing duties under this Act and such other information as the Minister considers necessary for the proper administration and enforcement of this or any other Act, and shall give the information to the Minister and other persons without charge and in the form and manner and at the times required by the Minister. 2004, c. 31, Sched. 21, s. 8.

Duty to comply with guidelines

(4)  Every designated collector and land registrar shall comply with such guidelines established by the Minister as the Minister may require respecting the form and manner in which information is to be obtained by designated collectors or land registrars in the course of performing duties under this Act and respecting the collection and remittance of tax under this Act. 2004, c. 31, Sched. 21, s. 8.

Duty to file returns

5.3  (1)  Every land registrar shall file with the Minister such returns as the Minister may require with respect to the amount of tax collected by the land registrar. 2004, c. 31, Sched. 21, s. 8.

Same, designated collectors

(2)  Every designated collector shall file with the Minister at such times and in such manner as the Minister may require such returns containing such information as the Minister may require. 2004, c. 31, Sched. 21, s. 8.

Agreement to exchange information with City of Toronto

5.4  (1)  The Minister and the City of Toronto may enter into an agreement under which,

(a) the Minister may disclose to the City of Toronto information collected by the Minister in the administration of this Act or the regulations; and

(b) the City of Toronto may disclose to the Minister information collected by the City of Toronto in the administration and enforcement of a by-law made under section 267 of the City of Toronto Act, 2006 that imposes a municipal land transfer tax. 2008, c. 7, Sched. K, s. 1.

Scope of information

(2)  An agreement described in subsection (1) may authorize the disclosure of any information collected by the Minister, by the City of Toronto or by an agent of either or both of them that relates to a conveyance or a disposition on or after February 1, 2008. 2008, c. 7, Sched. K, s. 1.

Minister may disclose information

(3)  Despite any other Act, the Minister may disclose information to the City of Toronto in accordance with an agreement described in subsection (1). 2008, c. 7, Sched. K, s. 1.

City of Toronto may collect and use information

(4)  Despite any other Act, the City of Toronto may collect and use information disclosed to it by the Minister in accordance with an agreement described in subsection (1), but shall use it only for the purposes of administering or enforcing a by-law made under section 267 of the City of Toronto Act, 2006 that imposes a municipal land transfer tax. 2008, c. 7, Sched. K, s. 1.

City of Toronto may disclose information

(5)  Despite any other Act, the City of Toronto may disclose information to the Minister in accordance with an agreement described in subsection (1). 2008, c. 7, Sched. K, s. 1.

Minister may collect and use information

(6)  Despite any other Act, the Minister may collect and use information disclosed by the City of Toronto in accordance with an agreement described in subsection (1) for the purposes of administering and enforcing any Act and any portion of any Act administered by the Minister. 2008, c. 7, Sched. K, s. 1.

Deemed collection

(7)  Despite any other Act, all information collected by the Minister from the City of Toronto under an agreement described in subsection (1) is deemed to be information collected directly by the Minister from the person or entity from whom the City of Toronto collected the information. 2008, c. 7, Sched. K, s. 1.

Offence, false statements

6.  (1)  Every person is guilty of an offence who,

(a) makes, participates in, assents to or acquiesces in the making of false or deceptive statements in a statement, affidavit, return or other document prepared, submitted or filed under this Act;

(b) destroys, alters, mutilates, hides or otherwise disposes of any records or books of account, in order to evade payment of tax under this Act;

(c) makes, assents to or acquiesces in the making of false or deceptive entries, or assents to or acquiesces in the omission to enter a material particular, in any records or books of account;

(d) wilfully, in any manner, evades or attempts to evade,

(i) paying tax under this Act, or

(ii) complying with this Act; or

(e) conspires with any person to commit an offence described in clauses (a) to (d). 2004, c. 31, Sched. 21, s. 9.

Same

(2)  A person convicted of an offence under subsection (1) is liable to one or both of the following penalties, in addition to any other penalty provided by this Act:

1. A fine that is,

i. a minimum of $1,000 or 50 per cent of the amount of tax that should have been remitted as collected or payable or that was sought to be evaded, whichever is greater, and

ii. a maximum of twice the amount of tax that should have been remitted as collected or payable or that was sought to be evaded, if the maximum so calculated is greater than $1,000.

2. Imprisonment for a term of not more than two years. 2004, c. 31, Sched. 21, s. 9.

Offence, failure to deliver return, pay tax

6.1  In addition to any penalty otherwise payable under this Act, every person who fails to deliver a return as required by subsection 5 (7) or (8) or who fails to remit the tax payable is guilty of an offence and on conviction is liable to a fine of not less than 25 per cent of the tax payable and not more than twice the amount of the tax payable. 2004, c. 31, Sched. 21, s. 9.

Offence, general

7.  (1)  Subject to sections 6 and 6.1, every person who knowingly contravenes any provision of this Act is guilty of an offence and on conviction is liable to a fine of not more than $10,000 if no other penalty is provided for the offence. 2004, c. 31, Sched. 21, s. 10 (1).

Compliance, how proved

(2)  For the purpose of any proceeding taken under this Act, the facts necessary to establish compliance on the part of the Minister with this Act as well as the failure of any person to comply with the requirements of this Act shall, unless evidence to the contrary satisfactory to the court is adduced, be sufficiently proved in any court of law by affidavit of the Minister or of any officer of the Ministry of Finance. R.S.O. 1990, c. L.6, s. 7 (2); 2004, c. 31, Sched. 21, s. 10 (2).

Limitation

(3)  A proceeding to prosecute an offence under this Act shall be commenced within six years of the time when the offence occurred. R.S.O. 1990, c. L.6, s. 7 (3).

Penalty, failure to pay tax

7.1  (1)  If the Minister is satisfied that a person’s failure to pay tax is attributable to fraud or wilful default, the Minister may assess a penalty against the person in an amount equal to the greater of $500 and 25 per cent of the tax that the person failed to pay. 1999, c. 9, s. 133.

Same, tax under s. 2 (1)

(2)  Every person who tenders for registration a conveyance described in subsection 2 (1) and who pays, at that time, an amount that is less than the amount of tax payable by that person under subsection 2 (1) shall pay a penalty, when the Minister assesses it, in an amount equal to 5 per cent of the difference between the tax payable and the amount actually paid. 2004, c. 31, Sched. 21, s. 11.

Same, returns under s. 5

(3)  Every person who fails to deliver a return as required by subsection 5 (7) or (8) shall pay a penalty, when the Minister assesses it, in an amount equal to 5 per cent of the tax payable. 2004, c. 31, Sched. 21, s. 11.

Same, taxes under s. 5

(4)  Every person who fails to remit with a return required by subsection 5 (7) or (8) the amount of tax payable shall pay, when the Minister so assesses, a penalty of an amount equal to 5 per cent of the difference between the tax payable and the amount actually paid. 2004, c. 31, Sched. 21, s. 11.

Penalties, designated collectors

Failure to comply with conditions of designation

7.2  (1)  The Minister may assess a penalty against a designated collector who fails to comply with any condition or restriction attached to the designated collector’s designation under subsection 5.1 (1) and the amount of the penalty is not more than $5,000 for each day the failure continues. 2004, c. 31, Sched. 21, s. 12.

Failure to provide security

(2)  The Minister may assess a penalty against a designated collector who fails to provide security as required under subsection 5.1 (3) and the amount of the penalty is not more than $5,000 for each day the failure continues. 2004, c. 31, Sched. 21, s. 12.

Failure to collect tax

(3)  The Minister may assess a penalty against a designated collector who fails to collect tax as required by subsection 5.2 (1), and the amount of the penalty is 110 per cent of the amount that the designated collector failed to collect. 2004, c. 31, Sched. 21, s. 12.

Right to sue

(4)  If a designated collector pays a penalty under subsection (3) in respect of tax that the designated collector failed to collect from a person who was liable to pay the tax, the designated collector may sue the person in order to recover the amount of the tax. 2004, c. 31, Sched. 21, s. 12.

Failure to remit tax

(5)  The Minister may assess a penalty against a designated collector who fails to remit tax as required by subsection 5.2 (2), and the amount of the penalty is 10 per cent of the amount that the designated collector failed to remit. 2004, c. 31, Sched. 21, s. 12.

Failure to provide information

(6)  The Minister may assess a penalty against a designated collector who, in the Minister’s opinion, fails to provide the information required by subsection 5.2 (3) in accordance with the requirements imposed under that subsection and the amount of the penalty is $10,000 for each day that the failure continues. 2004, c. 31, Sched. 21, s. 12.

Failure to comply with guidelines

(7)  The Minister may assess a penalty against a designated collector who, in the Minister’s opinion, fails to comply with the guidelines under subsection 5.2 (4) and the amount of the penalty is not more than $5,000 for each day the failure continues. 2004, c. 31, Sched. 21, s. 12.

Failure to file a return

(8)  The Minister may assess a penalty against a designated collector who fails to file a return under subsection 5.3 (2) at the time or in the manner required by the Minister or fails to include in a return filed under that subsection any information required by the Minister and the amount of the penalty is $10,000 for each day that the failure continues. 2004, c. 31, Sched. 21, s. 12.

Refund

8.  (1)  Where a person has paid an amount under this Act that is not payable under this Act, the Minister may, upon receipt of satisfactory evidence that the amount was wrongly paid, refund all or part of the amount, but no refund shall be made unless an application for it is made within four years after the date of the payment. 2004, c. 31, Sched. 21, s. 13 (1).

Refund, residence on farmland

(2)  The Minister may refund to a transferee the tax paid by him, her or it under this Act, as calculated under clause 2 (1) (b), on a conveyance of land on which a single family residence is located,

(a) if the residence ceases to be a single family residence under this Act because the land on which the residence is located is eligible to be classified in the farm property class prescribed under the Assessment Act; and

(b) if the Minister receives evidence satisfactory to him or her that the land is eligible to be classified in the farm property class. 2000, c. 42, s. 68 (1); 2002, c. 22, s. 135.

Time limit

(3)  The Minister shall not make a refund under subsection (2) unless an application is made for the refund within four years after the conveyance is registered. 2000, c. 42, s. 68 (2).

Same, land not transferred

(4)  In the following circumstances, the Minister may refund all or part of the tax paid on the tender or submission for registration of a conveyance that is a caution or notice of any kind signifying the existence of any unregistered instrument or writing by which an interest in land is conveyed:

1. The caution or notice evidences an agreement to transfer or to extinguish an interest in land.

2. The Minister is satisfied that the transfer or extinguishment of the interest,

i. has not taken place in whole or in part, or

ii. is not part of another conveyance or a disposition of a beneficial interest in land between the same parties. 1998, c. 34, s. 87.

Same, related conveyance or disposition

(4.1)  In the following circumstances and only to the extent that the Minister considers it equitable to do so, the Minister may refund tax paid on the tender or submission for registration of a conveyance that is a caution or notice of any kind signifying the existence of any unregistered instrument or writing by which an interest in land is conveyed:

1. The caution or notice evidences an agreement to transfer or to extinguish an interest in land.

2. The transfer or extinguishment has occurred as part of another conveyance or a disposition of a beneficial interest in land between the same parties.

3. The Minister is satisfied that tax has been paid under the Act in respect of the other conveyance or disposition.

4. The refund does not exceed the amount necessary to eliminate any incidence of double taxation under the Act on the transfer or extinguishment of the interest in land. 1998, c. 34, s. 87.

(5)  Repealed: 1997, c. 10, s. 15 (2).

Refund of tax paid under s. 3

(6)  If the Minister is satisfied that a person has paid tax under section 3 on a disposition of a beneficial interest in land and under subsection 2 (1) upon the registration of or submission for registration of an instrument evidencing the disposition of the beneficial interest, the Minister may, upon application by the person in the prescribed manner within four years after the date of registration of the instrument, refund the tax paid under section 3 to that person. R.S.O. 1990, c. L.6, s. 8 (6); 1996, c. 18, s. 11 (5); 1997, c. 43, Sched. F, s. 6 (3); 2004, c. 31, Sched. 21, s. 13 (2).

Disallowance of refund

(7)  Where a person has, in accordance with this Act and the regulations, applied for a refund under this Act and the person’s claim is in whole or in part refused, the Minister shall cause to be delivered to such person a statement of disallowance in such form as the Minister shall require, and the statement shall specify the amount of the disallowance and the reasons therefor. R.S.O. 1990, c. L.6, s. 8 (7); 1997, c. 19, s. 12 (2).

Application to other liabilities

(8)  Instead of making a refund under this Act or the regulations, if any person is liable or is about to become liable to make a payment under this Act or under any other Act administered by the Minister that imposes a tax or is prescribed by the regulations, the Minister may apply the amount of the overpayment to the liability and, in that case, the Minister shall notify the person that the action has been taken. 1994, c. 18, s. 4 (13).

Refund on purchase of eligible home

9.  (1)  Where, in respect of a conveyance of land,

(a) Repealed: 1997, c. 10, s. 16.

(b) the tax payable under subsection 2 (1) was paid with respect to the conveyance and the conveyance was registered after the 17th day of May, 1989;

(c) a transferee named in the conveyance, or the transferee’s spouse within the meaning of the Ontario Home Ownership Savings Plan Act, was a planholder of an Ontario home ownership savings plan that was entered into by the planholder and the depositary before January 1, 1994, or to which assets were transferred under section 7 of that Act from a plan of a deceased spouse of the planholder that was entered into before January 1, 1994, and the assets of the Ontario home ownership savings plan have been released under section 5 of that Act for the purposes of purchasing the qualifying eligible home of the transferee under that Act;

(d) the qualifying eligible home of the transferee referred to in clause (c) now forms part of the land subject to the conveyance; and

(e) the transferee, or his or her spouse, within the meaning of the Ontario Home Ownership Savings Plan Act, if the transferee is married,

(i) is entitled to receive an Ontario home ownership savings plan tax credit for the taxation year in which the assets of the transferee’s Ontario home ownership savings plan were released for the purpose described in clause (c), or would have been entitled to such a tax credit for that taxation year if the transferee had made a contribution to the plan in that taxation year, or would have been so entitled but for subsection 3 (2) of the Ontario Home Ownership Savings Plan Act, or

(ii) was entitled to receive and did receive an Ontario home ownership savings plan tax credit for either of the two taxation years ending before the date the assets of the plan were released for the purpose described in clause (c),

the Minister may, upon application therefor within the prescribed time and in the prescribed manner, refund to the transferee the amount of tax determined under subsection (2) with respect to the conveyance, without interest thereon, where the Minister is satisfied that the qualifying eligible home had a total purchase price of not more than $200,000. R.S.O. 1990, c. L.6, s. 9 (1); 1994, c. 18, s. 4 (14); 1997, c. 10, s. 16.

Amount of refund

(2)  The amount of tax which may be refunded to a transferee under subsection (1) is,

(a) where the total purchase price of the qualifying eligible home does not exceed $150,000, the amount of the tax paid under subsection 2 (1), or, if the transferee is not the only transferee named in the conveyance, the portion of such tax applicable to the transferee’s interest acquired under the conveyance including, where the transferee is married to a spouse within the meaning of the Ontario Home Ownership Savings Plan Act, the spouse’s interest acquired under the conveyance; and

(b) where the total purchase price of the qualifying eligible home exceeds $150,000 but does not exceed $200,000, the percentage of the tax paid under subsection 2 (1) appearing on the following table beside the range of total purchase prices which includes the total purchase price of the transferee’s qualifying eligible home, except that if the transferee is not the only transferee named in the conveyance, the amount of the refund shall not exceed the percentage determined under this clause of the portion of the tax applicable to the transferee’s interest acquired under the conveyance including, where the transferee is married to a spouse within the meaning of the Ontario Home Ownership Savings Plan Act, the spouse’s interest acquired under the conveyance:

R.S.O. 1990, c. L.6, s. 9 (2).

Total purchase price defined

(3)  Subject to subsection (4),

“total purchase price of a qualifying eligible home” for the purposes of this section means,

(a) where the conveyance is of land upon which there is an eligible home under the Ontario Home Ownership Savings Plan Act at the time of registration of the conveyance, the value of the consideration for the conveyance, or

(b) where the conveyance is of land upon which there was not yet an eligible home under the Ontario Home Ownership Savings Plan Act at the time of registration of the conveyance, the aggregate of the value of the consideration for the conveyance and the total cost for the construction or acquisition of the eligible home which subsequently forms part of the land. R.S.O. 1990, c. L.6, s. 9 (3); 2008, c. 7, Sched. K, s. 2.

Where part of land not for residential use

(4)  Where a part of the land conveyed is not used for residential purposes at the time of the application for a refund under this section, the Minister may, to the extent that the Minister considers it practicable, determine what amount of the value of the consideration for the conveyance is reasonably attributable to the land used in connection with the transferee’s qualifying eligible home and, for the purposes of determining the total purchase price of the qualifying eligible home and the amount of the refund payable under this section, the value of the consideration for the conveyance shall be deemed to be the amount so determined by the Minister and the amount of tax paid under subsection 2 (1) shall be deemed to be the amount of such tax which would have been payable thereon. R.S.O. 1990, c. L.6, s. 9 (4).

Offence

(5)  Any person who makes or assists in making a statement in any application for a refund under this section or section 9.2, or in any document provided to the Minister in connection therewith, that, at the time and in the light of the circumstances under which it was made, is false or misleading in respect of any material fact or that omits to state any material fact the omission of which makes the statement false or misleading is guilty of an offence and on conviction is liable to a fine of not more than $2,000. R.S.O. 1990, c. L.6, s. 9 (5); 1996, c. 18, s. 12 (1).

Recovery of refund wrongly obtained

(6)  Where a refund is made under this section or section 9.2 to a transferee and it is subsequently determined that the transferee was not entitled to the refund, or was entitled only to a refund in a lesser amount, the amount of the refund to which the transferee was not entitled shall, for the purposes of this Act, be deemed to be tax imposed by section 2 which was required to have been paid by the transferee on the date the refund was made to the transferee by the Minister. R.S.O. 1990, c. L.6, s. 9 (6); 1996, c. 18, s. 12 (2).

No refund

(7)  No refund shall be made under this section to any transferee who has received a refund under section 9.2. 1996, c. 18, s. 12 (3).

Deemed application of s. 3

(8)  For the purposes of this section, a reference to a conveyance shall be deemed to include a disposition of a beneficial interest in land and a reference to the tax paid or payable under subsection 2 (1) shall be deemed to include the tax paid or payable under subsection 3 (2). 1996, c. 24, s. 32.

9.1  Repealed: 2004, c. 31, Sched. 21, s. 14.

Refund re newly-constructed home

Definitions

9.2  (1)  In this section,

“newly constructed home” means a home in respect of which the purchaser is entitled to a warranty under section 13 of the Ontario New Home Warranties Plan Act and which is sold to the purchaser by a vendor as defined in that Act; (“logement neuf”)

“purchaser” means an individual who is at least 18 years of age and who has never owned an eligible home anywhere in the world and whose spouse has not owned an eligible home anywhere in the world while he or she was a spouse of the individual; (“acheteur”)

“qualifying home” means,

(a) for agreements of purchase and sale entered into before December 14, 2007, a newly constructed home, and

(b) for agreements of purchase and sale entered into after