Build Ontario Act (Budget Measures), 2021, S.O. 2021, c. 40 - Bill 43

JurisdictionOntario
Date09 December 2021
Bill Number43

EXPLANATORY NOTE

This Explanatory Note was written as a reader’s aid to Bill 43 and does not form part of the law. Bill 43 has been enacted as Chapter 40 of the Statutes of Ontario, 2021.

SCHEDULE 1
ASSESSMENT ACT

The Schedule amends the Assessment Act. New paragraph 4.0.1 of subsection 3 (1) of the Act provides a tax exemption for land leased and occupied solely by a university if certain conditions are met. Paragraph 19 of subsection 3 (1) of the Act, which provides a tax exemption for land used for forestry purposes, is amended to permit the Minister to prescribe a higher number of acres.

The definition of “pipe line” in subsection 25 (1) of the Act is amended by removing the phrase “that is designated by the owner as a transmission pipe line” and subsection 25 (2) of the Act is amended by removing the word “transmission”. Subsection 25 (3) of the Act is amended to provide that all disputes as to whether land is a pipe line for the transportation or transmission of gas are to be decided by the Ontario Energy Board on application and new subsection 25 (3.1) of the Act sets out the conditions upon which an application to the Ontario Energy Board may be made. New subsection 25 (3.2) of the Act provides for the deemed application of the amended definition of “pipe line” in subsection 25 (1) of the Act for the purposes of certain proceedings relating to an assessment of a pipe line made by the assessment corporation for a taxation year prior to 2022.

SCHEDULE 2
BUSINESS CORPORATIONS ACT

The Schedule amends the Business Corporations Act to require certain corporations to prepare and maintain a register of individuals with significant control over the corporation.

New section 1.1 of the Act provides interpretive rules for determining which individuals are individuals with significant control over a corporation.

New section 140.2 of the Act sets out rules respecting the information that must be included in the register of individuals with significant control, the way in which the information is to be updated, and how the personal information in the register is to be disposed of after an individual ceases being an individual with significant control over the corporation.

New section 140.3 of the Act governs requests for disclosure of information in the register of individuals with significant control for law enforcement, tax compliance or regulatory purposes.

New section 140.4 of the Act permits the Minister to authorize a person to make inquiries with respect to compliance with sections 140.2 and 140.3.

New section 258.1 of the Act sets out offences and penalties in connection with the register of individuals with significant control.

SCHEDULE 3
CITY OF TORONTO ACT, 2006

The Schedule makes various amendments to the City of Toronto Act, 2006. The changes include the following:

1. Amendments are made to section 275 of the Act, which provides for the establishment of tax ratios for the City, to allow the Minister of Finance to make regulations prescribing methods for determining certain ratios, where currently the regulation-making authority is limited to prescribing the ratios in question, as well as regulations requiring the City to establish the tax ratios that are specified in, or determined in accordance with, the regulations, despite the rules set out in subsections 275 (6), (7) and (8) of the Act.

2. Currently, section 333 of the Act allows the City to pass by-laws cancelling all or a portion of taxes for municipal and school purposes levied on eligible properties. Such by-laws may apply in respect of the rehabilitation period or the development period for the property, or both, and may only apply to taxes for school purposes if the approval of the Minister of Finance has been obtained before the by-law is passed. Section 333 also provides for various procedural requirements with respect to these by-laws. Various amendments are made to this section, which include replacing references to the “rehabilitation period” and “development period” with reference to the “assistance period”, which constitutes a new defined term; amending the section to allow the Minister of Finance to approve the application of a by-law to taxes for school purposes even after the by-law has been passed; and adding regulation-making authority to allow the Minister of Finance to prescribe circumstances in which a by-law may apply with respect to taxes for school purposes without the approval of the Minister of Finance.

SCHEDULE 4
CORPORATIONS TAX ACT

Currently, subsection 4 (12) of the Corporations Tax Act provides that if the liability of a corporation for tax under the Income Tax Act (Canada) is determined with reference to a tax treaty, convention or agreement with another country, the corporation does not have a permanent establishment in Ontario for the purposes of the Corporations Tax Act if it does not have such an establishment for the purposes of the tax treaty, convention or agreement.

The Schedule amends the Act to provide that subsection 4 (12) does not apply for the purposes of the tax imposed under section 74 of the Act. The amendment is deemed to have come into force on January 1, 2020.

SCHEDULE 5
CREDIT UNIONS AND CAISSES POPULAIRES ACT, 2020

The Schedule makes various technical and other amendments to the Credit Unions and Caisses Populaires Act, 2020. Here are some highlights:

1. New section 35.1 establishes rules for when a credit union may accept deposits from a member in trust for a named beneficiary.

2. New section 82.1 requires credit unions to make monthly provision for doubtful loans and establish reserves.

3. Section 87, which governs the election of directors, and section 89, which governs directors’ terms of office, are re-enacted to provide that those matters are to be provided for in the credit unions’ by-laws, subject to any Authority rules.

4. Certain terminology is updated or corrected.

5. New regulation-making powers and Authority rule-making powers are added.

6. New section 283.1 provides that a regulation made under the Act may provide that a matter that may be required, authorized or otherwise determined in accordance with the regulations may be required, authorized or otherwise determined by credit union by-law instead.

SCHEDULE 6
EDUCATION ACT

Currently, clause 257.12 (1) (c) of the Education Act allows the Minister of Finance to make regulations prescribing rates for the purposes of calculating payments in lieu of taxes for certain real property that is exempt from taxation for school purposes. The Schedule amends the Act by adding a new subsection 257.12 (1.1.2), which provides that the tax rates prescribed under that clause are the tax rates for school purposes that would be applicable to the property to which the prescribed rate applies if the property were taxable.

SCHEDULE 7
ELECTION FINANCES ACT

The Election Finances Act is amended to repeal subsections 37.10.2 (4) and (5), which prohibit the sale of third party political advertising by an advertiser when the sale would cause a third party to go over its spending limits.

In addition, subsection 40 (1) of the Act is amended to provide that the requirement to appoint an auditor or specified auditing firm applies to a calendar year for which a financial statement is required.

SCHEDULE 8
EMPLOYER HEALTH TAX ACT

Currently, subsection 7 (1) of the Employer Health Tax Act requires that interest be charged on debts payable under the Act in respect of a particular year. Subsection 7 (1.1.1) currently provides that the amount of interest payable in respect of a particular year ending after December 31, 2021 is to be calculated without regard to any amount not paid as an instalment for the year, if the employer’s total Ontario remuneration for the prior year was not more than $1,200,000. A new subsection 7 (1.3.1) sets out circumstances in which subsection 7 (1.1.1) does not apply.

Currently, subsection 30 (2) of the Act provides for a penalty if a person fails to deliver a statement required by the Act. Subsections 30 (2.1) currently sets out an exception for a year if the employer’s total Ontario remuneration for the prior year was not more than $600,000 and subsection 30 (2.3) currently sets out circumstances in which subsection (2.1) does not apply. Amendments are made to provide that subsections 30 (2.1) and (2.3) apply with respect to years beginning before January 1, 2022. New subsection 30 (2.1.1) sets out an exception from subsection 30 (2) for a year ending after December 31, 2021, if the employer’s total Ontario remuneration for the prior year was not more than $1,200,000. A new subsection 30 (2.3.1) sets out circumstances in which subsection 30 (2.1.1) does not apply.

SCHEDULE 9
EMPLOYMENT STANDARDS ACT, 2000

Section 23.1 of the Employment Standards Act, 2000 is amended to increase the minimum wage on January 1, 2022. The minimum wage is subject to an annual inflation adjustment on October 1 of every year starting in 2022. The different minimum wage for employees who serve liquor is eliminated.

SCHEDULE 10
FAR NORTH ACT, 2010

The Schedule makes various amendments to the Far North Act, 2010.

Section 5 of the Act currently requires, as part of the objectives of land use planning in the Far North, that 225,000 square kilometres of the Far North be designated as an interconnected network of protected areas in community based land use plans. This requirement is removed from the objectives of land use planning in the Far North.

Section 6 of the Act is amended to ensure that any contributions of traditional knowledge and perspectives on protection, conservation and sustainable development that are made by First Nations are considered during land use planning carried out under the Act.

The most significant amendments are those made with respect to the establishment of a joint body under section 7 of the Act.

Under section 7 currently, discussions with the Minister relating to the...

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