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Retail Sales Tax Act

R.S.O. 1990, CHAPTER R.31

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

Last amendment: 2008, c. 7, Sched. R.

SKIP TABLE OF CONTENTS

CONTENTS

Definitions

1.  (1)  In this Act,

“admission” includes entry to a place of amusement where any charge is made for such entry and any entry that is provided to a place of amusement as a promotional distribution; (“entrée”)

“automobile insurance” means, with respect to a motor vehicle required to be insured under the Compulsory Automobile Insurance Act, automobile insurance that satisfies the requirements of that Act; (“assurance-automobile”)

“benefits plan” means a funded benefits plan or an unfunded benefits plan; (“régime d’avantages sociaux”)

“commercial parking space” means a space, including a space on a street or highway, used for the parking of motor vehicles for which a price is paid or a charge made; (“espace de stationnement commercial”)

“computer program” means a program, thing, data, information, knowledge or an instruction,

(a) that is used to instruct or inform a computer, machine or device, and

(b) that is retained or transferred in any manner including by electronic means,

and includes the types of programs described in subsection (3), documents designed to facilitate the use of all or part of a program and the right to use a program; (“programme informatique”)

“consumer” or “user” means a person who,

(a) utilizes or intends to utilize in Ontario tangible personal property or a taxable service for his, her or its own consumption or for the consumption of any other person at his, her or its expense, or

(b) utilizes or intends to utilize in Ontario tangible personal property or a taxable service on behalf of or as the agent for a principal who desired or desires to so utilize such property or taxable service for consumption by the principal or by any person at the expense of the principal; (“consommateur”, “usager”)

“consumption” includes the use, and the incorporation into any structure, building or fixture, of tangible personal property including that manufactured by the consumer or further processed or otherwise improved by the consumer and includes the provision by way of promotional distribution of any tangible personal property or taxable service; (“consommation”)

“contract of insurance” includes a policy, a certificate, an interim receipt, a renewal receipt, a writing evidencing the contract, whether sealed or not, and a binding oral agreement; (“contrat d’assurance”)

“fair value” includes,

(a) the price for which the tangible personal property or the taxable service was purchased, including the value in terms of Canadian money of services rendered and things exchanged and other considerations accepted by the vendor or person from whom the tangible personal property passed or taxable services were rendered as the price or on account of the price of the tangible personal property purchased or taxable service received,

(b) the cost of, or charges for, customs, mailing, handling, delivery or transportation, whether or not such are shown separately in the books of the vendor or on any invoices or in the computation of the sale price, or whether or not title has passed to the purchaser before delivery to such purchaser, but does not include delivery charges made by a vendor under a contract for the sale of soil, clay, sand, gravel or unfinished stone,

(c) the tax imposed pursuant to any provision of the Excise Tax Act (Canada), except the tax imposed by Part IX of that Act, or the Excise Act (Canada) in respect of the tangible personal property or the taxable service or the sale or acquisition of either of them,

(d) the cost of installation where the contract under which the property is acquired provides for the acquisition of the property and its installation for one consideration,

(e) the cost, including materials, labour and manufacturing overhead, of tangible personal property produced by the vendor or person for his, her or its own consumption or use,

(f) in the case of a sale within the meaning of clause (i) of the definition of “sale”, the fair market value of the tangible personal property transferred to any shareholder, and

(g) Repealed: 2002, c. 8, Sched. J, s. 1.

(h) any tax payable by the purchaser under section 4,

(i) Repealed: 2000, c. 10, s. 23 (1).

except that, in the case of either a mobile home or a modular home sold for the first time at a retail sale after the 6th day of April, 1976, “fair value” means the taxable value of such mobile home or modular home, as the case may be; (“juste valeur”)

“full fair value” means, in respect of a promotional distribution of tangible personal property or a taxable service, the price paid by the promotional distributor for the tangible personal property or taxable service or, if the tangible personal property was manufactured or produced by the promotional distributor or the taxable service was provided by the promotional distributor, the cost incurred by the promotional distributor to manufacture or produce the property or to provide the service, as the case may be; (“juste valeur intégrale”)

“full price of admission” means, in respect of a promotional distribution of an admission, the price paid by the promotional distributor for the admission or, if the place of amusement to which the admission is supplied is owned or operated by the promotional distributor, the normal and usual price charged for the admission; (“prix d’entrée intégral”)

“funded benefits plan” means a plan, including a multi-employer benefits plan, which gives protection against risk to an individual that could otherwise be obtained by taking out a contract of insurance, whether the benefits are partly insured or not, and which comes into existence when the premiums paid into a fund out of which benefits will be paid exceed amounts required for payment of benefits foreseeable and payable within thirty days after payment of the premium; (“régime d’avantages sociaux par capitalisation”)

“group insurance” means a policy of insurance that covers, under a master policy, the participants of a specified group or of a specified group and other persons; (“assurance collective”)

“insurance” means the undertaking by one person to indemnify another person against loss or liability for loss in respect of a certain risk or peril to which the object of the insurance may be exposed, or to pay a sum of money or other thing of value upon the happening of a certain event, and includes life insurance; (“assurance”)

“insurer” means the person who undertakes or agrees or offers to undertake a contract of insurance and includes an exchange, as defined under the Insurance Act, a reciprocal insurance exchange, as defined under that Act, and an association registered under the Prepaid Hospital and Medical Services Act; (“assureur”)

“International Registration Plan” means the International Registration Plan referred to in subsection 7.1 (1) of the Highway Traffic Act; (“entente appelée International Registration Plan”)

“member” means an individual or other persons to whom benefits are payable under a benefits plan; (“participant”)

“member jurisdiction” means a jurisdiction other than Ontario that is a member of the International Registration Plan; (“autorité membre”)

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

“mobile home” means a vehicular portable structure that,

(a) is defined to be a mobile home, a multiple section mobile home or a swing out and expandable room section mobile home for the purposes of the Z240 series of standards prescribed by the Canadian Standards Association, and

(b) complies with the requirements for a mobile home, multiple section mobile home or swing out and expandable room section mobile home contained in that series of standards, and bears the seal of the Canadian Standards Association attesting to such compliance; (“maison mobile”)

“modular home” means a house that is intended for residential purposes and that is constructed by assembling manufactured modular units each of which comprises at least one room or living area, has been manufactured to comply with the A277 series of standards prescribed by the Canadian Standards Association, and bears the seal of that Association attesting to such compliance; (“maison modulaire”)

“multi-employer benefits plan” means a trust established to provide employees of two or more unrelated employers protection against risk to an individual under a single funded benefits plan; (“régime d’avantages sociaux interentreprises”)

“multijurisdictional vehicle” means a vehicle for which an IRP cab card, as defined in subsection 6 (1) of the Highway Traffic Act, has been issued; (“véhicule à immatriculation multilatérale”)

“person”, in addition to its meaning in Part VI (Interpretation) of the Legislation Act, 2006, includes Her Majesty in right of Ontario, a partnership, a municipality or a local board thereof as defined in the Municipal Affairs Act, and any board, commission or authority established under any Act of the Legislature; (“personne”)

“place of amusement” means an amusement park or a premises or place, whether enclosed or not, where a projector or similar equipment is operated, or where a theatrical performance, carnival, circus, side show, menagerie, concert, rodeo, exhibition, horse race, athletic contest or other performance or entertainment is staged or held or where facilities for dancing are provided to the public with the service of liquor, beer or wine and to which admission is granted upon payment of a price of admission through the sale of tickets or otherwise; (“lieu de divertissement”)

“planholder” means the person who provides a benefits plan, including an employer under a multi-employer benefits plan; (“titulaire du régime”)

“premium” means,

(a) any payment in respect of a contract of insurance and includes any payment made by a subscriber to an exchange or reciprocal insurance exchange (as defined in the Insurance Act) and dues, assessments, administration fees paid for the administration or servicing in respect of the contract and other considerations, but does not include a reasonable financing fee or a prescribed underwriting fee that is shown separately from other charges,

(b) any charge made by the holder of group insurance to any person whose risk is covered by the policy,

(c) any amounts required to be paid into an insurance scheme or compensation fund established by or under any Act of the Parliament of Canada or the Legislature of Ontario,

(d) in respect of an unfunded benefits plan,

(i) any amounts, other than an amount that would be included in the total Ontario remuneration of the planholder under the Employer Health Tax Act, paid by the planholder by reason of the occurrence of a risk, less any amounts paid to the planholder by members in order to receive benefits under the plan, and

(ii) any amounts paid by members in order to receive benefits under the plan,

and includes dues, assessments, or administrative costs and fees paid for the administration or servicing of the plan to the vendor,

(e) in respect of a funded benefits plan,

(i) any amounts paid into the plan by the planholder, including amounts paid to an administrator, but not including amounts that would be included in total Ontario remuneration of the planholder under the Employer Health Tax Act when paid out of the benefits plan, less any amounts paid to the planholder by members in order to receive benefits under the plan, and

(ii) any amounts paid by members in order to receive benefits under the plan,

and includes dues, assessments, or administrative costs and fees paid for the administration or servicing of the plan to the vendor; (“prime”)

“price of admission” means the charge made to a purchaser for entry into a place of amusement; (“prix d’entrée”)

“promotional distribution” means the provision by any person to others of any tangible personal property, taxable service or admission to a place of amusement (other than any provision thereof that is prescribed by the Minister to be excluded from the application of this paragraph) that is, in the opinion of the Minister, provided for any one or more of the following purposes:

(a) to promote or encourage attendance at, or patronage of, any place of amusement, business, undertaking or enterprise,

(b) to describe, or to promote or encourage the purchase, consumption or use of, any goods, wares, services or property of any kind,

(c) to furnish to any person any directory, listing or compilation of persons, places, prices, services, commodities, places of business or users of any service,

(d) for any function, use or purpose prescribed by the Minister to be a promotional distribution; (“distribution promotionnelle”)

“promotional distributor” means any person who is a resident of, or carries on business in, Ontario and who, by way of promotional distribution, provides or causes to be provided to any person in Ontario any tangible personal property, taxable service or admission to a place of amusement the full fair value or full price of admission of which is not specifically charged to, and required to be paid by, the person to whom such tangible personal property, taxable service or admission to a place of amusement is provided; (“agent de distribution promotionnelle”)

“protection against risk to an individual” includes any undertaking to pay on death, or disability, or for supplemental health care, drugs, dental care, vision care, hearing care, or for protection against loss of income due to illness or accident or that provides any other similar benefit to an individual; (“protection personnelle contre un risque”)

“purchaser” means a consumer or person who acquires tangible personal property anywhere, or who acquires or receives a taxable service at a sale in Ontario, for his, her or its own consumption or use, or for the consumption or use in Ontario of other persons at his, her or its expense, or on behalf of or as agent for a principal who desires to acquire the property or service for consumption or use in Ontario by the principal or by other persons at his, her or its expense, and includes,

(a) a person who, at his, her or its expense, purchases admission to a place of amusement for himself, herself or itself or for another person, and

(b) a promotional distributor to the extent that the full fair value or full price of admission of any tangible personal property, taxable service or admission to a place of amusement provided by way of promotional distribution exceeds any payment specifically made for it by the person to whom the property, service or admission is so provided; (“acheteur”)

“registrant” means a person who registers a multijurisdictional vehicle under the International Registration Plan; (“titulaire de l’immatriculation”)

“registration year” means, in respect of a multijurisdictional vehicle, the period, not exceeding 12 months, beginning on the day the vehicle is registered under the International Registration Plan; (“année d’immatriculation”)

“regulations” means the regulations made under this Act; (“règlements”)

“retail sale” means a sale to a purchaser for the purpose of consumption or use and not for resale; (“vente au détail”)

“returnable container” means a container or other tangible personal property,

(a) that is used in the packaging, storage or shipping of tangible personal property, and

(b) that is intended to be returned, directly or indirectly, to a person for reuse in the packaging, storage or shipping of tangible personal property; (“contenant réutilisable”)

“sale” means,

(a) any transfer of title or possession, exchange, barter, lease or rental, conditional or otherwise, including a sale on credit or where the price is payable by instalments, or any other contract whereby at a price or other consideration a person delivers to another person tangible personal property,

(a.1) the provision of any charge or billing, including periodic payments,

(i) upon rendering or providing or upon any undertaking to render or provide to another person a taxable service, or

(ii) for or on account of a price of admission, including any admission sold on a subscription or season ticket basis,

(a.2) the insertion of coins or tokens into a meter or other device in order to pay for the use of a commercial parking space,

(a.3) the transfer or delivery in any manner of a computer program including the assumption of, or adherence to, a licence to use the program,

(b) the production, fabrication, processing, printing or imprinting of tangible personal property for a consideration for consumers who furnish either directly or indirectly the materials used in the production, fabrication, processing, printing or imprinting,

(c) the furnishing and distribution of tangible personal property for a consideration by social clubs or fraternal organizations to their members or others,

(d) the furnishing, preparation or service for a consideration of food, meals or drinks,

(e) a transaction whereby the possession of tangible personal property is transferred but the vendor retains the title as security for payment of the price,

(f) a transfer for a consideration of the title to or possession of tangible personal property that has been produced, fabricated, printed or imprinted to the order of the purchaser,

(g) the production, fabrication, processing, printing or imprinting of tangible personal property or the production of a taxable service by a person for his, her or its own consumption or use when that person furnishes either directly or indirectly the materials and labour used in such production, fabrication, processing, printing or imprinting,

(h) the provision by way of promotional distribution of any tangible personal property or taxable service,

(i) the transfer of title to or possession of tangible personal property from a corporation to any shareholder thereof as the result of the winding up or dissolution of the corporation, except where the corporation has paid tax under this Act with respect to its consumption or use of the tangible personal property to be transferred, or where, at the time of the corporation’s winding up or dissolution, the tangible personal property is exempt from tax under this Act or is acquired by a shareholder solely for the purpose of resale,

(j) the delivery of beer or wine to a person who contracted with a vendor for use of the vendor’s premises to produce the beer or wine for the person’s own consumption or use,

(k) the provision of such telecommunication services as the Minister may prescribe; (“vente”)

“storage” includes any keeping or retention in Ontario for any purpose except retail sale or, subject to subsection 2 (11.1), subsequent use outside Ontario of tangible personal property purchased from a vendor, but does not include the keeping, retaining or exercising of any right or power over tangible personal property shipped or brought into Ontario for the purpose of transporting it subsequently outside Ontario or for the purpose of being processed, fabricated or manufactured into, attached to or incorporated into other tangible personal property to be transported outside Ontario and thereafter used solely outside Ontario; (“entreposage”)

“subscriber” means, in relation to an exchange or reciprocal insurance exchange (as defined in the Insurance Act), a person exchanging with another person a reciprocal contract of indemnity or insurance; (“souscripteur”)

“tangible personal property” means personal property that can be seen, weighed, measured, felt or touched or that is in any way perceptible to the senses and includes computer programs, natural gas and manufactured gas; (“bien meuble corporel”)

“tax” includes all penalties and interest that are or may be added to a tax under this Act; (“taxe”)

“taxable service” means,

(a) telecommunication services of all kinds, including without restricting the generality of the foregoing, telephone and telegraph services, community antenna television and cable television, transmissions by microwave relay stations or by satellite, and pay television, but not including public broadcasting services that are broadcast through the air for direct reception by the public without charge,

(b) transient accommodation,

(c) labour provided to install, assemble, dismantle, adjust, repair or maintain tangible personal property other than a computer program,

(c.1) labour provided to install, configure, modify or upgrade a computer program, as those words are defined by the Minister, where there is a sale of the labour on or after July 19, 2002,

(d) any contract for the service, maintenance or warranty of tangible personal property other than a computer program,

(d.1) any contract entered into on or after July 19, 2002 for the service, maintenance or warranty of a computer program, as those expressions are defined by the Minister, or

(e) the provision of the right to park a motor vehicle or to have a motor vehicle parked in a commercial parking space; (“service taxable”)

“taxable value” means,

(a) in the case of a mobile home, one-half of the sale price thereof that is charged to the person acquiring the mobile home as a residence, if such price is determined by including therein all charges for delivery of the mobile home in accordance with the terms of such sale, by excluding therefrom the retail sale price of any furniture or appliance that is not permanently attached to, and part of, the interior structure of the mobile home, and by excluding therefrom any charges for the installation or connection of the mobile home on the site to which it is delivered, or

(b) in the case of a modular home, an amount equal to 55 per cent of the sale price of such modular home on the sale thereof by its manufacturer to a builder, or where the manufacturer is the consumer of such modular home, 55 per cent of the sale price normally charged by the manufacturer on the sale thereof to a builder,

but such taxable value applies only with respect to the first retail sale of a mobile home or a modular home after the 6th day of April, 1976; (“valeur taxable”)

“telecommunication” means any transmission, emission or reception of signs, signals, writing, images or sound or intelligence of any nature by wire, radio, visual or other electromagnetic or laser-based system, but does not include any transmission, emission or reception or class thereof that is prescribed by the Minister to be excluded for the purpose of this definition; (“télécommunication”)

“trailer” has the same meaning as in subsection 1 (1) of the Highway Traffic Act; (“remorque”)

“transient accommodation” means the provision of,

(a) lodging in a hotel, motel, hostel, apartment house, lodging house, boarding house, club or other similar accommodation, whether or not a membership is required for the lodging,

(b) prepared food products provided pursuant to the American plan, modified American plan or other arrangement that combines the provision of lodging and prepared food products at a single price, or

(c) lodging or lodging and prepared food products provided as a right or privilege of membership in an organization, whether or not a specific charge for the lodging and prepared food products is made,

but does not include the provision of lodging let for a continuous period of one month or more or lodging in a lodging house, rooming house or boarding house that has accommodation for fewer than four tenants; (“logement temporaire”)

“unfunded benefits plan” means a plan which gives protection against risk to an individual that could otherwise be obtained by taking out a contract of insurance, whether the benefits are partly insured or not, and where payments are made by the planholder directly to or on behalf of the member of the plan or to the vendor upon the occurrence of the risk; (“régime d’avantages sociaux sans capitalisation”)

“use” includes storage and the exercise of any right or power over tangible personal property incidental to the ownership of that property, but it does not include the sale of that property at a retail sale or the keeping, retaining or exercising of any right or power over tangible personal property shipped or brought into Ontario for the purpose of transporting it subsequently outside Ontario for use thereafter solely outside Ontario or for the purpose of being processed, fabricated or manufactured into, attached to or incorporated into other tangible personal property to be transported outside Ontario and thereafter used solely outside Ontario; (“usage”)

“vendor” means a person who, in the ordinary course of business,

(a) sells or licenses tangible personal property,

(b) sells or renders a taxable service,

(c) owns or operates a place of amusement,

(d) is an insurer, an insurance agent licensed under the Insurance Act or a registered insurance broker as defined in the Registered Insurance Brokers Act,

(e) is a person, including the Crown, to whom contributions are paid in respect of an insurance scheme or compensation fund established by or under any Act of the Parliament of Canada or the Legislature of Ontario,

(f) is the planholder of a benefits plan or the person to whom the planholder or planholders of a benefits plan pay premiums,

(g) is a person who, in consideration of payment, whether direct or indirect, supplies to another person ingredients, utensils, facilities or equipment on the person’s premises for that other person to produce beer or wine for his or her own consumption or use, or

(h) is the holder of group insurance to whom charges are paid by persons whose risks are covered by the policy. (“vendeur”) R.S.O. 1990, c. R.31, s. 1; 1993, c. 12, s. 1 (1); 1994, c. 13, s. 1; 1994, c. 17, s. 135; 1996, c. 29, s. 23; 1997, c. 10, s. 30 (1-4); 1997, c. 43, Sched. D, s. 1; 2000, c. 10, s. 23; 2001, c. 8, s. 227; 2001, c. 23, s. 188; 2002, c. 8, Sched. J, s. 1; 2002, c. 17, Sched. F, Table; 2002, c. 22, s. 170 (1); 2005, c. 31, Sched. 19, s. 1; 2006, c. 21, Sched. F, s. 136 (2); 2006, c. 33, Sched. Z.4, s. 1; 2008, c. 7, Sched. R, s. 1 (1, 2).

Fair value of transient accommodation

(1.1)  Despite the definition of “fair value” in subsection (1), the fair value of transient accommodation sold to a purchaser on or after May 19, 2004 and before July 1, 2010 does not include a fee imposed by the vendor if the following conditions are satisfied:

1. The vendor forwards the fee to a non-profit agency to be used for the exclusive purpose of promoting tourism in Ontario or in the municipality in which the accommodation is located.

2. The fee does not exceed 3 per cent of the amount that would be the fair value of the transient accommodation if no fee were imposed by the vendor.

3. The fee is shown as a separate item on the purchaser’s invoice or receipt for the accommodation.

4. After December 31, 2004, the fee is labelled on the purchaser’s invoice or receipt as “Destination Marketing Fee”. 2004, c. 31, Sched. 33, s. 1; 2005, c. 28, Sched. M, s. 1; 2006, c. 9, Sched. M, s. 1; 2007, c. 7, Sched. 36, s. 1; 2008, c. 7, Sched. R, s. 1 (3).

Fair market value

(2)  For the purposes of clause (f) of the definition of “fair value” in subsection (1), the fair market value of tangible personal property that is a used motor vehicle is the fair market value as defined in subsection 4.2 (3). 1993, c. 12, s. 1 (2).

Types of computer programs

(3)  The following types of programs are computer programs for the purposes of this Act:

1. A program to solve a problem using a computer, machine or device, including the sequence of automatic instructions for data processing equipment necessary to solve the problem.

2. Instructions to enable or cause a computer, machine or device to control a function or perform it or to produce a desired result and to do so either directly or using other equipment.

3. System programs, application programs, assemblers, compilers, routines, generators and utility programs.

4. Pre-written programs. 1997, c. 10, s. 30 (5); 2002, c. 22, s. 170 (2).

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. 189.

Tax on purchasers

of tangible personal property

2.  (1)  Every purchaser of tangible personal property, except the classes thereof referred to in subsection (2), shall pay to Her Majesty in right of Ontario a tax in respect of the consumption or use thereof, computed at the rate of 8 per cent of the fair value thereof. R.S.O. 1990, c. R.31, s. 2 (1).

of liquor, beer, wine

(2)  Every purchaser of liquor, beer or wine shall pay to Her Majesty in right of Ontario a tax in respect of the consumption or use thereof computed at the rate of,

(a) 10 per cent of the fair value thereof if the liquor, beer or wine is sold or is required to be sold under the authority of a licence issued by the Alcohol and Gaming Commission of Ontario under the Liquor Licence Act; or

(b) 12 per cent of the fair value thereof if the liquor, beer or wine is sold or is required to be sold by or under the authority of the Liquor Control Board of Ontario under the Liquor Control Act. 1993, c. 12, s. 2 (1); 1998, c. 34, s. 93.

of taxable service

(3)  Every purchaser of a taxable service other than a taxable service described in clause (b) of the definition of “taxable service” in subsection 1 (1) shall pay to Her Majesty in right of Ontario a tax in respect thereof computed at the rate of 8 per cent of the fair value thereof. R.S.O. 1990, c. R.31, s. 2 (3); 1994, c. 13, s. 2 (1); 2002, c. 22, s. 171 (1).

Idem

(4)  Every purchaser of a taxable service described in clause (b) of the definition of “taxable service” in subsection 1 (1) shall pay to Her Majesty in right of Ontario a tax in respect thereof computed at the rate of 5 per cent of the fair value thereof. R.S.O. 1990, c. R.31, s. 2 (4).

Tax on admission to a place of amusement

(5)  Every purchaser of admission to a place or places of amusement shall pay to Her Majesty in right of Ontario a tax computed at the rate of 10 per cent of the price of admission where the price of admission exceeds $4. R.S.O. 1990, c. R.31, s. 2 (5).

When tax payable

(6)  A purchaser shall pay the tax imposed by this Act at the time of the sale or the promotional distribution of an admission. R.S.O. 1990, c. R.31, s. 2 (6); 1996, c. 29, s. 24 (1).

Sale by rent or lease

(7)  Despite subsection (6) and section 12, where a purchaser,

(a) rents or leases from any person any taxable service at a sale in Ontario; or

(b) acquires tangible personal property at a sale that is the lease or rental to the purchaser of such tangible personal property without provision for the transfer to the purchaser of title thereto, or with the provision of such transfer only upon the exercise of an option or similar right to acquire such tangible personal property,

the tax imposed by this section shall be computed, paid and collected on the due date of, and on the fair value of, each rental payment by or on behalf of the purchaser in respect of the lease or rental of such taxable service or tangible personal property, and tax shall, in addition, be computed, paid and collected at the time of, and on the fair value for, each of the obtaining of any option or similar right to purchase the tangible personal property leased or rented or the exercising of any such option or similar right. R.S.O. 1990, c. R.31, s. 2 (7); 1993, c. 12, s. 2 (2).

(8)  Repealed: 2005, c. 31, Sched. 19, s. 2.

Determination of fair value

(9)  Where the Minister considers it necessary or advisable, he or she may determine the amount of any price of admission or of any premium, or the fair value of any tangible personal property or any service, for the purpose of taxation under this Act, and thereupon the price of admission, the premium or the fair value of the tangible personal property or any service, for such purpose shall be so determined by the Minister unless, in proceedings instituted by an appeal under section 25, it is established that the determination is unreasonable. 1994, c. 13, s. 2 (2); 2002, c. 22, s. 171 (2).

Refund of tax

(10)  Subject to subsection (11), if a person sells any tangible personal property at a retail sale in Ontario to a person who alleges that he, she or it is not purchasing it for consumption or use in Ontario, the person shall nevertheless require the person who is purchasing it to pay the tax, but such payment shall be refunded on receipt by the Minister of satisfactory evidence that the tax was wrongfully paid. R.S.O. 1990, c. R.31, s. 2 (10).

Application for refund

(11)  An amount paid under this Act as tax that is not payable as tax and that was not paid to discharge liability under an assessment made under this Act shall be refunded if application for the refund is made to the Minister within four years after the date of payment of the amount. R.S.O. 1990, c. R.31, s. 2 (11).

Exception

(11.1)  Despite subsection (10), the Minister shall not refund any tax paid in respect of tangible personal property permanently removed from Ontario by the purchaser to another Canadian province or territory on or after July 1, 1993, unless the purchaser supplies proof satisfactory to the Minister that all of the taxes in respect of the property payable to the other Canadian jurisdiction have been paid and that none of the tax is refundable to the purchaser. 1994, c. 13, s. 2 (3); 1996, c. 29, s. 24 (2).

Limitation

(12)  Only one application may be made under subsection (11) in respect of the same amount. R.S.O. 1990, c. R.31, s. 2 (12).

Refund to contracting party

(13)  If the amount that is the subject of an application under subsection (11) was paid in the course of performing a contract for the construction of any building or structure or other improvement which on completion will be real property and was repaid by another party to the contract, the amount may be refunded to the other party. 1996, c. 29, s. 24 (3).

Overpayment refunded

(14)  Subject to subsection 18 (8), subsection 19 (3) and to subsection 20 (9), where an assessment or reassessment under this Act or the final decision of a court in proceedings commenced under section 25 establishes that the person assessed or reassessed or the appellant, as the case may be, has overpaid the tax payable under this Act for the period covered by the assessment or reassessment, the amount of such overpayment shall be refunded to the person. R.S.O. 1990, c. R.31, s. 2 (14).

Extension of time

(15)  Where, within four years following the payment of an amount under this Act as tax that is not payable as tax, the person who paid such amount informs the Minister that a claim for a refund of such amount will be made, and further provides to the Minister evidence of the nature of the claim and an explanation satisfactory to the Minister of why the full particulars of the claim cannot be furnished in the proper form within such four-year period, the Minister may extend by not more than six months the four-year period mentioned in subsection (11). R.S.O. 1990, c. R.31, s. 2 (15).

Refund by vendor

(16)  Despite subsection (11), a vendor may refund to a purchaser from whom the vendor has collected tax the whole or a part of such tax, as the case requires,

(a) if any of the circumstances described in subsection (16.0.1) exist; and

(b) if the refund is made within four years following the sale with respect to which the tax being refunded was collected. 2002, c. 22, s. 171 (3).

Same

(16.0.1)  The following are the circumstances in which a vendor may refund to a purchaser all or part of the tax collected by the vendor from the purchaser:

1. The tax payable and collected, or the purchase price charged, was overstated by reason of a clerical or arithmetical error in computation.

2. The purchaser acquired from the vendor the goods on which a refund of tax is sought for the purpose of reselling the goods, and after the sale and before the refund is made provides the vendor with a proper purchase exemption certificate with respect to the goods.

3. The price paid for the tangible personal property, taxable service or as the price of admission is subsequently reduced and the amount of the reduction refunded or credited to the purchaser.

4. The refund made is with respect to a class of transactions prescribed by the Minister for the purpose of this subsection or has been authorized by the Minister in writing before the refund is made. 2002, c. 22, s. 171 (3).

Deduction by vendor from amount remitted

(16.0.2)  The vendor may deduct from a subsequent remittance of tax under this Act the amount of a refund to a purchaser made in accordance with subsection (16) if the vendor takes the deduction within four years from the date of the refund to the purchaser. 2002, c. 22, s. 171 (3).

Same

(16.0.3)  Despite subsection (16.0.2), a vendor may not deduct the amount of a refund to a purchaser from a subsequent remittance to a person authorized under subsection 11 (1) to collect the tax from the vendor. 2002, c. 22, s. 171 (3).

Same

(16.0.4)  If subsection (16.0.3) applies with respect to a vendor, the Minister may refund to the vendor the amount of a refund to a purchaser referred to in subsection (16). 2002, c. 22, s. 171 (3).

Refund on premiums

(16.1)  Despite subsection (11), where a premium payable under a contract of insurance or a benefits plan is subsequently cancelled or reduced, the vendor may refund to the person from whom the vendor has collected tax, the whole or a part of such tax, as the case may be, if the refund is made within four years following the due date of the premium with respect to which the tax being refunded was collected. 1994, c. 13, s. 2 (5).

Same

(16.2)  Despite subsection (11), where a policy dividend or an experience rating refund is paid to a person who has entered into a contract of insurance, the insurer may refund an additional amount on account of tax if the premiums paid by the person were subject to tax under this Act and if the refund is made within four years following the due date of the original premium. 1994, c. 13, s. 2 (5).

Refund, reduction in tax

(16.3)  Despite subsection (11), any amount of tax paid before, on or after May 3, 2000 in respect of a premium payment due after May 2, 2000 under a contract of automobile insurance that exceeds the amount of tax payable under this section in respect of that premium payment may be refunded by the vendor to the person from whom the vendor collected the tax. However, no refund shall be made more than four years after the date on which the tax to be refunded was paid. 2000, c. 10, s. 25.

Deduction of refund

(16.4)  Any refund made under subsection (16.1), (16.2) or (16.3) may be deducted by the vendor from subsequent remittances of tax under this Act, if the vendor takes the deduction within four years from the date of the refund to the person who paid the premiums. 2000, c. 10, s. 25.

Refund not to include tax

(17)  Where the erroneous payment giving rise to a claim for a refund under subsection (11) or (14) is the result of a sale under a contract in which a party other than the applicant for the refund is the purchaser who should have paid the tax or any part thereof a refund of which is sought, and where such tax, had it been properly paid, can reasonably be considered to have been likely to form a part of the contract price that would have been charged to the person claiming the refund, the Minister may, despite subsection (11) or (14), determine by such method or formula as he or she considers appropriate the amount by which the payment sought to be refunded exceeds the tax that would have been properly payable in the performance of the contract, and shall refund only the amount of such excess so determined. R.S.O. 1990, c. R.31, s. 2 (17).

Tangible personal property brought into or received in Ontario

(18)  Every person who brings into Ontario or who receives delivery in Ontario of tangible personal property acquired by the person for value for his, her or its own consumption or use, or for the consumption or use of other persons at his, her or its expense, or on behalf of, or as agent for, a principal who desires to acquire such property for the consumption or use by such principal or other persons at his, her or its expense, shall immediately report the matter in writing to the Minister and shall supply the Minister with the invoice and all other pertinent information required by him or her in respect of the consumption or use of such property and at the same time shall pay to Her Majesty in right of Ontario the same tax in respect of the consumption and use of such property as would have been payable if the property had been purchased at a retail sale in Ontario at the time such tangible personal property is brought into Ontario or delivery thereof is received in Ontario together with any tax payable under section 4. R.S.O. 1990, c. R.31, s. 2 (18); 1994, c. 13, s. 2 (6).

Calculation of tax

(19)  The tax imposed by this Act shall be calculated separately on every purchase and shall be computed to the nearest cent, and every fraction of less than one-half cent shall not be counted and every fraction of one-half cent or more shall be counted as one cent, but, where on the same occasion or as part of one transaction several items of tangible personal property are purchased, the total of the purchase shall be deemed to be one purchase for the purposes of this Act. R.S.O. 1990, c. R.31, s. 2 (19).

Tax on merchandise tendered in trade

(20)  Where tangible personal property is accepted at the time of sale by a person or a vendor on account of the price of other tangible personal property sold, the purchaser shall pay a tax at the rate provided in subsection (1) calculated on the difference between the fair value of the property sold and the credit allowed for the tangible personal property accepted on account of the purchase price in trade. R.S.O. 1990, c. R.31, s. 2 (20); 1993, c. 12, s. 2 (4).

Exception

(20.1)  Subsection (20) does not apply if any purchaser could acquire the tangible personal property exempt from tax imposed by this Act at the time it is so accepted. 1993, c. 12, s. 2 (5).

Where exempt property put to taxable use

(21)  Where tangible personal property has been purchased exempt from the tax imposed by this Act, and the tangible personal property is subsequently put to a taxable use, the purchaser shall pay the tax imposed by this Act on the fair value of the tangible personal property at the time of change of use. R.S.O. 1990, c. R.31, s. 2 (21).

Tax on promotional distributions

(22)  The tax payable under this section in respect of tangible personal property, a taxable service or an admission that is supplied on a promotional distribution,

(a) is payable by the person to whom the promotional distribution is made in the amount determined by applying the appropriate tax rate to the amount, if any, paid or payable by the person for the tangible personal property, taxable service or admission, as the case may be; and

(b) is payable by the promotional distributor in the amount determined by applying the appropriate tax rate to the amount by which the full fair value of the tangible personal property or taxable service, or the full price of admission, exceeds the amount, if any, paid or payable to the promotional distributor by the person to whom the promotional distribution is made. 1997, c. 43, Sched. D, s. 2.

Tax on repairs, etc.

2.0.1(1)Every person who acquires tangible personal property anywhere or who acquires or receives a taxable service at a sale in Ontario for the purpose of repairing, replacing, servicing or maintaining tangible personal property (“guaranteed property”) under a warranty or guarantee or under a contract that provides for the service or maintenance of the guaranteed property or provides a warranty for the guaranteed property shall pay to Her Majesty in right of Ontario a tax in respect of the consumption or use of the tangible personal property or taxable service calculated at the rate of,

(a) 6 per cent of the cost of the property acquired, or service acquired or received, after May 2, 2000 and before April 1, 2001;

(b) 4 per cent of the cost of the property acquired, or service acquired or received, after March 31, 2001 and before April 1, 2002;

(c) 2 per cent of the cost of the property acquired, or service acquired or received, after March 31, 2002 and before April 1, 2003; and

(d) 1 per cent of the cost of the property acquired, or service acquired or received, after March 31, 2003 and before April 1, 2004. 2000, c. 10, s. 24.

Exemption

(2)No tax is payable on taxable services that are described in clause (c) of the definition of “taxable service” in subsection 1 (1) that are provided by a person for the purpose of repairing, replacing, servicing or maintaining guaranteed property if the person is required to repair, replace, service or maintain it under a warranty or guarantee or under a contract for its service, maintenance or repair. 2000, c. 10, s. 24.

When tax payable

(3)The tax under subsection (1) is payable when the repair, servicing or maintenance of the guaranteed property is completed or when the replacement is delivered to the purchaser of the guaranteed property. 2000, c. 10, s. 24.

Tax discontinued

(4)No tax is payable under this section in respect of tangible personal property acquired, or a taxable service acquired or received, after March 31, 2004 to repair, replace, service or maintain guaranteed property. 2000, c. 10, s. 24.

Simplified tax calculation, computer services

Definition

2.0.2  (1)  In this section,

“eligible service contract” means a contract for the provision for a single price of,

(a) taxable services described in clause (c.1) or (d.1) of the definition of “taxable service” in subsection 1 (1), and

(b) non-taxable services relating to computer programs. 2005, c. 31, Sched. 19, s. 3.

Minister may establish program

(2)  Despite subsection 2 (3), the Minister may establish a program under which the tax payable under this Act in respect of an eligible service contract shall be calculated at the rate of 6 per cent of the fair value of the eligible service contract and not at the rate of 8 per cent of the fair value of the taxable services provided in accordance with the contract. 2005, c. 31, Sched. 19, s. 3.

Same

(3)  A program established under this section shall apply in respect of eligible service contracts entered into during the period of time determined by the Minister to which the program applies. 2005, c. 31, Sched. 19, s. 3.

Eligible vendors

(4)  The Minister shall determine the classes of vendors who are eligible to collect tax calculated in accordance with this section in respect of eligible service contracts. 2005, c. 31, Sched. 19, s. 3.

Application

(5)  A vendor who belongs to a class of vendors referred to in subsection (4) may apply to the Minister to be authorized to collect tax calculated in accordance with this section in respect of eligible service contracts. 2005, c. 31, Sched. 19, s. 3.

Obligation to pay tax calculated under this section

(6)  A purchaser shall pay tax in the amount calculated under this section in respect of an eligible service contract and the vendor shall collect tax in the amount calculated under this section in respect of the contract if,

(a) the vendor is authorized by the Minister to collect tax calculated in accordance with this section in respect of eligible service contracts; and

(b) the purchaser consents to pay tax in respect of the eligible service contract in the amount calculated under this section and not in the amount that would otherwise be payable under subsection 2 (3). 2005, c. 31, Sched. 19, s. 3.

Tax on insurance, etc.

2.1  (1)  Every person who is resident in Ontario, or who carries on business in Ontario, and who,

(a) enters into a contract of insurance with an insurer;

(b) is a person whose risk is covered by group insurance;

(c) is a planholder or member of a benefits plan; or

(d) is required to contribute to an insurance scheme or a compensation fund established by or under any Act of the Parliament of Canada or the Legislature of Ontario,

shall pay to Her Majesty in right of Ontario a tax at the rate of 8 per cent of the premium payable. 1994, c. 13, s. 3.

Same

(2)  Every person who is resident in Ontario, or who carries on business in Ontario and who is the holder of group insurance shall pay to Her Majesty in right of Ontario a tax at the rate of 8 per cent of the premium payable by the person less the premiums, if any, paid to the person by those whose risks are covered by the policy. 1994, c. 13, s. 3.

Treatment of non-residents

(3)  Every person who is not a resident of Ontario, or who does not carry on business in Ontario, and,

(a) who enters into a contract of insurance with an insurer in respect of individuals who are ordinarily resident in Ontario, real property in Ontario or personal property ordinarily situated in Ontario; or

(b) who is a planholder in respect of members who are ordinarily resident in Ontario and who are not employees of the planholder,

shall pay to Her Majesty in right of Ontario a tax at the rate of 8 per cent of the premium payable. 1994, c. 13, s. 3.

Same

(4)  Every person who is not a resident of Ontario or who does not carry on business in Ontario, but who is the holder of group insurance covering risks of persons who are ordinarily resident in Ontario and who are not employees of the holder, shall pay to Her Majesty in right of Ontario a tax at the rate of 8 per cent of the premiums payable by the person less the premiums, if any, paid to the person by those persons in Ontario whose risks are covered by the policy. 1994, c. 13, s. 3.

(5)-(7)  Repealed: 2008, c. 7, Sched. R, s. 2 (1).

Exemptions

(8)  Despite this section, no tax is payable on premiums for,

(a) contracts of reinsurance;

(b) contracts of insurance on agricultural property as defined by the Minister where the property is used by a person who is engaged in the business of farming;

(c) contracts of insurance (other than contracts of group insurance or trip cancellation insurance) for the life, health or physical well-being of insured individuals;

(c.1) contracts of automobile insurance with respect to motor vehicles required to be insured under the Compulsory Automobile Insurance Act;

(d) marine insurance, as defined under the Insurance Act, in respect of a vessel where the purchaser of the vessel is exempt from tax under paragraphs 29, 30 and 61 of subsection 7 (1);

(e) contracts of insurance in respect of aircraft where the purchaser of the aircraft is exempt from tax under paragraph 22 of subsection 7 (1);

(f) contracts of insurance entered into by an Indian, a band or the council of a band in respect of real or personal property situated on a reserve or in respect of an Indian ordinarily resident on a reserve, or a benefits plan or contracts of group insurance where the person whose risk is covered is an Indian ordinarily resident on a reserve;

(g) the purchase of an annuity contract;

(h) the obtaining of a surety;

(i) a contract for the service, maintenance or warranty of tangible personal property;

(j) a contract of insurance entered into by an employer in respect of employees who ordinarily work outside Ontario or whose salary is ordinarily paid outside Ontario, or in respect of former employees who are no longer resident in Ontario;

(k) a contract of insurance entered into by a person in respect of an individual who is not ordinarily resident in Ontario;

(l) property insurance, as defined under the Insurance Act, in respect of property that is wholly outside Ontario or other insurance (but not group insurance) in respect of a risk, peril or events wholly outside Ontario;

(m) any contract of insurance that may be prescribed. 1994, c. 13, s. 3; 2004, c. 31, Sched. 33, s. 2; 2008, c. 7, Sched. R, s. 2 (2, 3).

Interpretation

(9)  For the purposes of clause (8) (f), a term used in that clause that is defined in the Indian Act (Canada) has the same meaning as in that Act. 1994, c. 13, s. 3.

Further exemptions

(10)  Despite subsection (1), no tax is payable on premiums, assessments or contributions paid pursuant to the Canada Pension Plan, the Credit Unions and Caisses Populaires Act, 1994, the Crop Insurance Act (Ontario), the Unemployment Insurance Act (Canada), the Workplace Safety and Insurance Act, 1997 or any other statute that may be prescribed. 1994, c. 13, s. 3; 1997, c. 16, s. 16; 2000, c. 10, s. 26 (2).

When tax payable

(11)  With respect to a premium referred to in clause (a), (b) or (c) of the definition of “premium” in subsection 1 (1), the tax payable under this section shall be collected by the vendor when the premium is paid to the vendor. 1994, c. 13, s. 3.

Same

(12)  With respect to a premium referred to in clause (d) of the definition of “premium” in subsection 1 (1),

(a) the tax under this section shall be collected by the vendor at the time the planholder paid the premium referred to in subclause (d) (i) of the definition to the vendor, or at the time the member paid the premium referred to in subclause (d) (ii) of the definition to the vendor; or

(b) where the planholder also administers the plan, the tax under this section shall be collected at the time the planholder received from the member the premium referred to in subclause (d) (ii) of the definition, and the planholder shall pay the tax on the premium referred to in subclause (d) (i) of the definition at the time the planholder paid any premium to or on behalf of the member at the time or times and in the manner prescribed in the regulations. 1994, c. 13, s. 3.

Same

(13)  With respect to a premium referred to in clause (e) of the definition of “premium” in subsection 1 (1),

(a) the tax under this section shall be collected by the vendor at the time the planholder paid the premium referred to in subclause (e) (i) of the definition to the vendor, or at the time the member paid the premium referred to in subclause (e) (ii) of the definition to the vendor; or

(b) where the planholder also administers the plan, the tax shall be collected at the time the planholder received from the member the premium referred to in subclause (e) (ii) of the definition, and the planholder shall pay the tax on the premium referred to in subclause (e) (i) of the definition at the time and in the manner prescribed in the regulations. 1994, c. 13, s. 3.

Accounting by person liable to pay tax

(14)  Every person who is liable to pay tax under this section, but who is obliged to pay the premium to a vendor who does not carry on business in Ontario, shall remit the tax payable by that person to the Minister at the time or times and in the manner prescribed by the regulations. 1994, c. 13, s. 3.

Person deemed purchaser

(15)  Every person who is liable to pay tax under this section shall be deemed to be a purchaser for the purposes of assessment, collection and enforcement of this Act. 1994, c. 13, s. 3.

Apportionment of premium

(16)  Where a contract of insurance (other than group insurance) relates to a risk, peril or events both in Ontario and outside Ontario, the tax payable under this section shall be calculated only upon the portion of the premium relating to the risk, peril or events in Ontario determined in the manner prescribed by the Minister. 1994, c. 13, s. 3.

Same

(17)  Where a contract of insurance relates to a risk, peril or event that is taxable and exempt from tax or that is taxed at different rates under this section, the portion of the premium that is taxable or that is taxable at a particular rate shall be determined in the manner prescribed by the Minister. 1994, c. 13, s. 3.

Same

(18)  Tax payable under this section shall be calculated only upon the premium related to members of a benefits plan who, if they are employees of the planholder, work at a location in Ontario or who are paid through a location in Ontario or if they are not members by reason of their employment, are ordinarily resident in Ontario. 1994, c. 13, s. 3.

Designation of benefits plan as funded or unfunded

(19)  A planholder who establishes a new benefits plan on or after the day this subsection comes into force shall, in the manner required by the Minister, designate in writing whether the benefits plan is intended to be a funded benefits plan or an unfunded benefits plan and, for the purposes of this Act, the benefits plan shall be deemed to be a funded benefits plan or an unfunded benefits plan in accordance with the designation until the planholder advises the Minister of a change to the benefits plan. 2006, c. 33, Sched. Z.4, s. 2.

Transitional

(20)  A planholder of a benefits plan that was established before the day subsection (19) comes into force shall notify the Minister at the time and in the manner required by the Minister whether the benefits plan was established as a funded benefits plan or an unfunded benefits plan and, for the purposes of this Act, the benefits plan shall be deemed from the day the notice is received by the Minister to be a funded benefits plan or an unfunded benefits plan in accordance with the notice until the planholder advises the Minister of a change to the benefits plan. 2006, c. 33, Sched. Z.4, s. 2.

Definitions re returning resident

2.2(1)In sections 2.3 to 2.6,

“collection agent” means,

(a) an officer as defined in section 2 of the Customs Act (Canada) who is employed at a customs office in Ontario,

(b) subject to subsection (2), the Canada Post Corporation, or

(c) subject to subsection (2), a collection agent for the Canada Post Corporation; (“agent de perception”)

“returning resident” means a person who,

(a) resides, ordinarily resides or carries on business in Ontario, and

(b) brings specified tangible personal property into Ontario from outside Canada, causes it to be so brought or receives delivery of it in Ontario from outside Canada,

(i) for his, her or its own consumption or use,

(ii) for consumption or use by another person at his, her or its own expense, or

(iii) on behalf of or as agent for a principal for consumption or use by the principal or by another person at the principal’s expense,

but does not include the holder of a certificate of Indian status issued by the Government of Canada who provides a declaration that the specified tangible personal property is being imported for use or consumption on a reserve (as defined by the Indian Act (Canada)) by an Indian, a band or the council of a band (as those terms are defined by that Act); (“résident de retour”)

“specified tangible personal property” means tangible personal property (including such tangible personal property as the Minister may prescribe to be specified tangible personal property) other than,

(a) vehicles, as defined by the Minister,

(b) tangible personal property that, if purchased in Ontario by the returning resident, would be exempt from tax under this Act, or

(c) tangible personal property prescribed by the Minister to be property that is not specified tangible personal property. (“bien meuble corporel précisé”) 1997, c. 10, s. 31; 1998, c. 5, s. 42.

Restriction

(2)The Canada Post Corporation and its collection agents are collection agents under this Act only when an agreement is in force between the Minister of National Revenue and the Corporation providing for the collection of taxes by the Corporation. 1997, c. 10, s. 31.

Tax payable by returning resident

2.3(1)This section applies when a returning resident brings specified tangible personal property into Ontario from outside Canada, causes it to be so brought or receives delivery of it in Ontario from outside Canada in the circumstances described in the definition of returning resident.

Restriction

(2)This section applies only when an agreement described in section 2.5 is in force between the Minister and the Government of Canada.

Information and taxes

(3)Upon bringing the specified tangible personal property or causing it to be brought into Ontario or upon receiving delivery of it, the returning resident shall,

(a) make such report to a collection agent as he, she or it may require with respect to the property;

(b) give the collection agent all the information he, she or it may require in respect of the property; and

(c) remit the tax payable on the property to the collection agent as agent for the Minister.

Amount of tax

(4)The tax payable on the specified tangible personal property by the returning resident is the amount specified in subsection 2 (1) or, in the case of liquor, beer or wine, the amount specified in clause 2 (2) (b).

Exception

(5)No tax is payable on specified tangible personal property in respect of which no tax is payable under Division III of Part IX of the Excise Tax Act (Canada), as that Division is amended from time to time. 1997, c. 10, s. 31.

Application for refund

(6)Subject to clause 2.5 (4) (b), a returning resident may apply under subsection 2 (11) for a refund of an amount paid under this section as tax that is not payable as tax. 1998, c. 5, s. 43.

(7)Repealed: 1998, c. 5, s. 43.

Returning resident, failure to report or pay tax

2.4(1)If a returning resident fails or refuses to comply with subsection 2.3 (3), the collection agent may detain the specified tangible personal property until the earlier of,

(a) the date on which the tax on the specified tangible personal property and the costs, if any, relating to its detention are paid; or

(b) the expiry of 60 days after the detention begins.

Return of property

(2)If the tax is paid before the expiry of the 60-day period, the specified tangible personal property shall be returned to the returning resident.

Forfeiture of property

(3)If the tax is not paid before the expiry of the 60-day period, the specified tangible personal property is forfeit to Her Majesty in right of Ontario and may be disposed of as directed by the Minister. 1997, c. 10, s. 31.

Returning residents, agreement with federal government

2.5(1)The Minister (on behalf of Her Majesty in right of Ontario) may enter into an agreement with the Government of Canada respecting the administration and enforcement of this Act in respect of specified tangible personal property,

(a) that is brought or caused to be brought into Ontario from outside Canada by a returning resident; or

(b) that is delivered in Ontario from outside Canada to a returning resident.

Compensation

(2)The agreement may authorize payment to the Government of Canada in respect of services under the agreement.

Payments

(3)Payments in respect of the ongoing costs of services under the agreement shall be paid out of the amounts collected on behalf of the Minister. 1997, c. 10, s. 31.

Authorization

(4)The Government of Canada may, as agent of Her Majesty in right of Ontario, act in accordance with the agreement,

(a) to collect tax owing in respect of specified tangible personal property that is released from customs without payment of all or part of the tax; and

(b) to refund an amount charged or collected by a collection agent that is in excess of the amount of tax payable in respect of the specified tangible personal property. 1997, c. 10, s. 31; 1998, c. 5, s. 44.

Immunity of collection agent

2.6  (1)  No action or proceeding shall be brought against a collection agent in respect of an act done or omitted to be done in good faith by the collection agent,

(a) in the performance or intended performance of a duty under this Act or under an agreement described in section 2.5; or

(b) in the exercise or intended exercise of a power under this Act or under an agreement described in section 2.5. 1997, c. 10, s. 31.

Liability of the Crown

(2)  Despite subsections 5 (2) and (4) of the Proceedings Against the Crown Act, subsection (1) does not relieve the Crown of a liability to which it would otherwise be subject in respect of a tort. 2001, c. 23, s. 190.

Tax on multijurisdictional vehicles

3.  (1)  In this section,

“repair parts” means,

(a) replacement parts designed and manufactured specifically for use on a multijurisdictional vehicle or a trailer used with a multijurisdictional vehicle, and

(b) parts purchased as part of a repair work order for a multijurisdictional vehicle or for a trailer that is used with a multijurisdictional vehicle. 2001, c. 23, s. 191 (1).

Tax payable on registration of vehicle

(2)  Every registrant of a multijurisdictional vehicle shall pay a tax to Her Majesty in right of Ontario in respect of the use in Ontario of the vehicle for each registration year during which the vehicle is registered under the International Registration Plan. 2001, c. 8, s. 228.

When tax is payable

(3)  The tax payable under subsection (2) for a registration year must be paid when the multijurisdictional vehicle is registered in Ontario or in a member jurisdiction under the International Registration Plan for the registration year to which the tax relates. 2001, c. 8, s. 228.

Amount of tax

(4)  The amount of tax payable under subsection (2) by a registrant for a registration year is calculated in the manner prescribed by the Minister, and the Minister may make regulations prescribing different rates of tax for the purposes of subsection (2) and the circumstances in which each rate of tax applies. 2001, c. 8, s. 228.

No tax payable under s. 2

(5)  A registrant is not liable to pay tax under section 2 in respect of the following:

1. A multijurisdictional vehicle purchased or used in Ontario and registered under the International Registration Plan, for which tax is paid under this section.

2. A trailer used or to be used with a multijurisdictional vehicle described in paragraph 1.

3. A taxable service, within the meaning of clause (c) or (d) of the definition of “taxable service” in subsection 1 (1), that is rendered in respect of a multijurisdictional vehicle or trailer described in paragraphs 1 or 2.

4. Repair parts that are purchased to be incorporated into a multijurisdictional vehicle or trailer described in paragraphs 1 or 2. 2001, c. 8, s. 228.

(6)  Repealed: 2001, c. 23, s. 191 (2).

Relief from double taxation

(7)  The Minister may make regulations providing for refunds or credits for purchasers who paid tax under section 2 in respect of multijurisdictional vehicles, and providing for the terms and conditions under which the refunds or credits are paid or allowed and rules for determining the amount. 2001, c. 8, s. 228.

Same

(8)  The Minister may make regulations providing for refunds or credits of tax paid under subsection (2) to relieve double taxation and prescribing circumstances in which a refund or credit may be paid or allowed and rules for determining the amount. 2001, c. 8, s. 228.

Tax if cease to be registered

(9)  If a multijurisdictional vehicle ceases to be registered under the International Registration Plan, the owner of the vehicle that is liable to pay tax under section 2 shall pay the tax, at the time and in the manner prescribed by the Minister, calculated on a value equal to the sum of,

(a) the depreciated value of the vehicle, determined in the manner prescribed by the Minister; and

(b) the fair value of the repair parts purchased by the owner to be incorporated into the vehicle, if the parts have not been incorporated into the vehicle. 2001, c. 8, s. 228; 2001, c. 23, s. 191 (3, 4).

Refund or credit on change in use

(10)  If an owner is required under subsection (9) to pay tax under section 2, the Minister may pay a refund or allow a credit to the owner for tax paid under subsection (2) in the amount, if any, determined under rules prescribed by the Minister, if the owner applies for a refund or credit and provides such material as the Minister may require to prove the owner’s entitlement to the refund or credit. 2001, c. 8, s. 228; 2001, c. 23, s. 191 (5).

Owner’s status as purchaser

(11)  In the circumstances described in subsections (9) and (10), the owner shall be deemed to be a purchaser for the purposes of the following provisions:

1. Subsections 18 (2), (3) and (5) (assessment).

2. Subsection 20 (7) (penalty).

3. Clauses 31 (1) (c) and (2) (c) (investigations).

4. Clauses 32 (4) (b) and (c) (offences).

5. Subclause 34 (2) (a) (i) (calculation of interest).

6. Subsection 37 (1) (recovery of tax).

7. Clause 48 (3) (b) (regulations re record-keeping). 2001, c. 23, s. 191 (6).

Conditional exemption

(12)  If the owner or lessee of a multijurisdictional vehicle transfers it to a person who is in a prescribed relationship to the owner or lessee, as the case may be, the tax under this section is payable in accordance with the regulations. 2001, c. 23, s. 191 (6).

Tax on beer or wine production

3.1(1)Every person who produces beer or wine at a vendor’s premises,

(a) for the person’s own consumption or use or for the consumption or use in Ontario of other persons at the first mentioned person’s expense; or

(b) on behalf of or as agent for a principal who desires to acquire such beer or wine for consumption or use in Ontario by such principal or others at the principal’s expense,

shall pay to Her Majesty in right of Ontario a tax of,

(c) $0.26 per litre of beer or wine delivered to the person on or after August 1, 1993 and before April 19, 1994;

(d) $0.13 per litre of beer or wine delivered to the person on or after April 19, 1994.

Tax to be collected

(2)The person shall pay the tax imposed under subsection (1) and the vendor shall collect the tax at the time of sale.

Tax otherwise payable

(3)The payment of tax under this section does not relieve the person from liability to pay any tax otherwise imposed by this Act.

Person liable deemed purchaser

(4)Every person liable to pay tax under this section shall be deemed to be a purchaser for the purposes of assessment, collection and enforcement of this Act. 1994, c. 13, s. 5.

Tax for fuel conservation

4.  (1)  Every purchaser of a new passenger vehicle or sport utility vehicle shall pay to Her Majesty in right of Ontario a tax in respect of the consumption or use of the vehicle in the amount determined under subsection (5) or (6). 1992, c. 13, s. 2.

Definitions

(2)  In this section,

“passenger vehicle” and “sport utility vehicle” mean a vehicle or type of vehicle determined by the Minister to be a passenger vehicle