Taxpayer Protection Act, 1999, S.O. 1999, c. 7, Sched. A

• Jurisdiction: Ontario

Taxpayer Protection Act, 1999

S.O. 1999, CHAPTER 7
Schedule A

Consolidation Period: From May 8, 2018 to the e-Laws currency date.

Last amendment: 2018, c. 8, Sched. 33.

CONTENTS

Interpretation

Definitions

1 In this Act,

“authority to tax” means the authority (referred to in section 3) to change a tax rate in a designated tax statute, to levy a new tax or to determine the tax rate for school purposes or the amount to be levied as tax for school purposes; (“pouvoir d’imposition”)

“campaign organizer” means a person or entity who is required by section 11 to apply for registration with the Chief Electoral Officer; (“organisateur de campagne”)

“Chief Electoral Officer” means the Chief Electoral Officer appointed under the Election Act; (“directeur général des élections”)

“designated tax statute” means any of the following statutes:

1. Corporations Tax Act.

2. Education Act.

3. Employer Health Tax Act.

4. Fuel Tax Act.

5. Gasoline Tax Act.

6. Income Tax Act.

7. Provincial Land Tax Act, 2006.

8. Retail Sales Tax Act.

9. Taxation Act, 2007; (“loi fiscale désignée”)

“person” includes a trade union. (“personne”) 1999, c. 7, Sched. A, s. 1; 2004, c. 16, Sched. D, Table; 2006, c. 33, Sched. Z.3, s. 32 (1); 2007, c. 11, Sched. B, s. 6; 2007, c. 15, s. 40.

Section Amendments with date in force (d/m/y)

2004, c. 16, Sched. D, Table - 01/01/2004

2006, c. 33, Sched. Z.3, s. 32 (1) - 01/01/2009

2007, c. 11, Sched. B, s. 6 - 04/06/2007; 2007, c. 15, s. 40 (1) - 04/06/2007

Taxpayer Protection

Restriction on tax increases, new taxes

2 (1) A member of the Executive Council shall not include in a bill a provision that increases, or permits the increase of, a tax rate under a designated tax statute or that establishes a new tax unless,

(a) a referendum concerning the increase or the new tax is held under this Act before the bill is introduced in the Assembly; and

(b) the referendum authorizes the increase or the new tax. 1999, c. 7, Sched. A, s. 2 (1).

Same, tax for school purposes

(2) The Minister of Finance shall not make a regulation under the Education Act that increases the average tax rate for school purposes in Ontario, as calculated by the Minister, unless,

(a) a referendum concerning the increase is held under this Act before the regulation is made; and

(b) the referendum authorizes the increase. 1999, c. 7, Sched. A, s. 2 (2).

Same

(3) The Minister of Finance shall not requisition amounts under section 257.12.1 of the Education Act that are designed to increase the average tax rate for school purposes in Ontario, as calculated by the Minister, unless,

(a) a referendum concerning the increase in the tax rate is held under this Act before the increased amount is requisitioned; and

(b) the referendum authorizes the increase. 1999, c. 7, Sched. A, s. 2 (3).

Tax under the Provincial Land Tax Act, 2006

(4) The Minister of Finance shall not make a regulation under the Provincial Land Tax Act, 2006 that increases the average tax rate under that Act, as the average tax rates are calculated by the Minister, unless,

(a) a referendum concerning the increase is held under this Act before the regulation is made; and

(b) the referendum authorizes the increase. 1999, c. 7, Sched. A, s. 2 (4); 2006, c. 33, Sched. Z.3, s. 32 (2).

Exception

(4.1) Subsection (4) does not apply to a regulation made under the Provincial Land Tax Act, 2006 that increases the average tax rate under that Act if the regulation is made on or after the day Schedule 41 to the Building Ontario Up Act (Budget Measures), 2015 comes into force and before January 1, 2017. 2015, c. 20, Sched. 41, s. 1.

Same

(4.2) Subsection (4) does not apply to a regulation made under the Provincial Land Tax Act, 2006 that increases the average tax rate under that Act if the regulation is made on or after the day Schedule 41 to the Stronger, Fairer Ontario Act (Budget Measures), 2017 comes into force and before July 1, 2018. 2017, c. 34, Sched. 41, s. 1.

Interpretation

(5) If a designated tax statute contains a provision that decreases a tax rate (or an effective tax rate) on a specified future date, the following shall be deemed to constitute an increase in the tax rate:

1. The repeal of the provision before the specified future date.

2. The replacement of the specified future date with a later date.

3. The replacement of the specified decrease with a smaller decrease. 1999, c. 7, Sched. A, s. 2 (5).

Exception, 2002

(6) Subsection (1) does not apply to a bill that includes provisions that would be deemed to constitute, by virtue of paragraph 2 of subsection (5), increases in tax rates under the Corporations Tax Act, the Income Tax Act or both of those Acts if,

(a) the bill receives first reading in 2002;

(b) the provisions replace the specified future dates, on which decreases in tax rates (or effective tax rates) in the Corporations Tax Act, the Income Tax Act or both of those Acts are to take effect, with later dates; and

(c) each of the later dates mentioned in clause (b) is a date that is no later than the first anniversary of the specified future date it replaces. 2002, c. 8, Sched. L, s. 1; 2004, c. 16, Sched. D, Table.

Exception, 2004

(7) Despite subsection (1), the following provisions may be included in a bill that receives First Reading in 2004:

1. A provision that amends the Income Tax Act to establish a new tax called the Ontario Health Premium in English and contribution-santé de l’Ontario in French.

2. A provision that amends section 4.1 of the Income Tax Act to provide that the tax payable by a qualifying environmental trust for a taxation year shall be calculated at the same rate as the specified basic rate of tax payable by a corporation under subsection 38 (2) of the Corporations Tax Act. 2004, c. 7, s. 17; 2004, c. 16, s. 2 (3).

Exception, 2012

(8) Subsection (1) does not apply to any bill that receives First Reading in 2012 and that includes provisions that would do any of the following:

1. Amend subsection 29 (2) of the Taxation Act, 2007 to provide that a corporation’s basic rate of tax for a taxation year ending after June 30, 2012 is 11.5 per cent.

2. Amend the Taxation Act, 2007 to increase, by up to two percentage points, the tax rate for individuals (other than inter vivos trusts) on taxable income over $500,000, the tax rate for inter vivos trusts and the tax rate that applies to an individual’s split income under section 12 of that Act. 2012, c. 8, Sched. 57, s. 1.

Statement to the Assembly

(9) If the amendment described in paragraph 1 of subsection (8) is enacted, the Minister of Finance shall provide a statement to the Assembly after the end of the first fiscal year ending after March 31, 2013 for which the Minister is of the opinion, based on information contained in the public accounts, that the Province’s expenditures do not exceed its revenues. 2012, c. 8, Sched. 57, s. 1; 2014, c. 7, Sched. 30, s. 1 (1).

Same

(10) The statement under subsection (9) shall indicate when, in the opinion of the Minister, it may be reasonable for one or more bills to be introduced that amend the Taxation Act, 2007 to reduce a corporation’s basic rate of tax. 2012, c. 8, Sched. 57, s. 1; 2014, c. 7, Sched. 30, s. 1 (2).

Exception, 2014

(11) Subsection (1) does not apply to any bill that receives First Reading in 2014 and that includes a provision that would amend the Taxation Act, 2007 as follows:

1. By amending subsection 3 (1) of that Act to define the “middle tax rate” as 11.16 per cent, the “second-highest tax rate” as 12.16 per cent and the “second-lowest tax rate” as 9.15 per cent, and

2. By re-enacting subsection 6 (1) of that Act to provide that the basic personal income tax for a taxation year of an individual ending after December 31, 2013 is the sum of the following amounts:

i. The amount calculated by multiplying the lowest tax rate for the year by the portion of the individual’s tax base for the year that does not exceed $40,120.

ii. The amount calculated by multiplying the second-lowest tax rate for the year by the amount by which the individual’s tax base for the year exceeds $40,120, but does not exceed $80,242.

iii. The amount calculated by multiplying the middle tax rate for the year by the amount by which the individual’s tax base for the year exceeds $80,242, but does not exceed $150,000.

iv. The amount calculated by multiplying the second-highest tax rate for the year by the amount by which the individual’s tax base for the year exceeds $150,000, but does not exceed $220,000.

v. The amount calculated by multiplying the highest tax rate for the year by the amount by which the individual’s tax base for the year exceeds $220,000. 2014, c. 7, Sched. 30, s. 1 (3).

Exception, 2017

(12) Subsection (1) does not apply to any bill that receives First Reading in 2017 and that includes a provision that would amend the Land Transfer Tax Act to establish a new tax on the acquisition of an interest in land in Ontario by a foreign entity or by a person who is not a citizen or permanent resident of Canada. 2017, c. 8, Sched. 31, s. 1.

Exception, 2018

(13) Subsection (1) does not apply to a bill that receives First Reading in 2018 and that includes a provision that would amend subsections 3 (1) and 6 (1) of the Taxation Act, 2007 in a manner that would increase the tax rates for individuals under that Act. 2018, c. 8, Sched. 33, s. 1.

Section Amendments with date in force (d/m/y)

2002, c. 8, Sched. L, s. 1 - 27/06/2002

2004, c. 7, s. 17 - 17/06/2004; 2004, c. 16, s. 2 (3) - 04/11/2004; 2004, c. 16, Sched. D, Table - 01/01/2004;

2006, c. 33, Sched. Z.3, s. 32 (2) - 01/01/2009

2012, c. 8, Sched. 57, s. 1 - 20/06/2012

2014, c. 7, Sched. 30, s. 1 (1-3) - 24/07/2014

2015, c. 20, Sched. 41, s. 1 - 04/06/2015

2017, c. 8, Sched. 31, s. 1 - 17/05/2017; 2017, c. 34, Sched. 41, s. 1 - 14/12/2017

2018, c. 8, Sched. 33, s. 1 - 08/05/2018

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