ontario regulation 52/07

made under the

Corporations Tax Act

Made: February 7, 2007
Filed: February 16, 2007
Published on e-Laws: February 20, 2007
Printed in The Ontario Gazette: March 3, 2007


Amending Reg. 183 of R.R.O. 1990

(General)

1. (1) Subsection 906 (4) of Regulation 183 of the Revised Regulations of Ontario, 1990 is amended by striking out the portion before paragraph 1 and substituting the following:

(4) The following are the conditions referred to in clause (a) of the definition of “eligible product” in subsection 43.11 (15) of the Act that must be satisfied for a product other than a specified product to be an eligible product for the purposes of section 43.11 of the Act:

. . . . .

(2) Subparagraph 3 ii of subsection 906 (4) of the Regulation is revoked and the following substituted:

ii. the product was developed for sale or licensing by the qualifying corporation to one or more persons dealing at arm’s length with the qualifying corporation who have not previously entered into an arrangement with the qualifying corporation or a qualifying predecessor corporation for the development of the product.

(3) Section 906 of the Regulation is amended by adding the following subsection:

(4.1) The following are the conditions referred to in paragraph 1 of subsection 43.11 (15.1) of the Act that must be satisfied for a product to be a specified product for the purposes of section 43.11 of the Act:

1. The product is an interactive digital media product.

2. The product is not used primarily for interpersonal communication.

3. Development of the product was started by the qualifying corporation or a qualifying predecessor corporation and completed by the qualifying corporation in Ontario.

4. The product is not used primarily to present or promote the qualifying corporation, a qualifying predecessor corporation or the purchaser referred to in paragraphs 2 and 3 of subsection 43.11 (15.1) of the Act.

5. The product is not used primarily to present, promote or sell the products or services of the qualifying corporation, a qualifying predecessor corporation or the purchaser referred to in paragraphs 2 and 3 of subsection 43.11 (15.1) of the Act.

(4) Clause 906 (5) (b) of the Regulation is revoked and the following substituted:

(b) if the eligible product is not a specified product, 50 per cent of the qualifying remuneration amount as described in subsection (7) of the qualifying corporation or qualifying predecessor corporation for the taxation year with respect to the eligible product.

2. This Regulation shall be deemed to have come into force on March 24, 2006.