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O. Reg. 673/05: Payments in Lieu of Corporate Taxes


Published: 2005-12-29

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ontario regulation 673/05

made under the

Electricity Act, 1998

Made: December 28, 2005
Filed: December 29, 2005
Published on e-Laws: December 30, 2005
Printed in The Ontario Gazette: January 14, 2006


Amending O. Reg. 207/99

(Payments in Lieu of Corporate Taxes)

1. (1) The definitions of “nuclear decommissioning fund” and “spent fuel management fund” in section 2 of Ontario Regulation 207/99 are revoked.

(2) Section 2 of the Regulation is amended by adding the following definitions:

“nuclear waste management or decommissioning fund” means,

(a) the Used Fuel Segregated Fund established pursuant to the ONFA,

(b) the Decommissioning Segregated Fund established pursuant to the ONFA,

(c) the Ontario NFWA Trust established by Ontario Power Generation Inc. as of November 15, 2002 in accordance with the Nuclear Fuel Waste Act

(Canada), or

(d) a fund established on or after April 1, 1999 by Ontario Power Generation Inc. or by a subsidiary of that corporation for the sole purpose of financing the obligations of Ontario Power Generation Inc. and its subsidiaries with respect to the decommissioning of all or part of a nuclear generation facility or financing the management of nuclear waste and used fuel, but only if all or part of the fund is transferred to a fund described in clause (a), (b) or (c) in July 2003;

“ONFA” means the Ontario Nuclear Funds Agreement entered into as of April 1, 1999 by Her Majesty the Queen in right of Ontario, Ontario Power Generation Inc. and certain subsidiaries of Ontario Power Generation Inc.;

2. (1) Paragraphs 1 and 2 of subsection 14 (1) of the Regulation are amended by striking out “nuclear decommissioning fund or spent fuel management fund” wherever it appears and substituting in each case “nuclear waste management or decommissioning fund”.

(2) Paragraph 1 of subsection 14 (2) of the Regulation is revoked and the following substituted:

1. Such amount as the corporation may claim, not exceeding the total contributions by the corporation to one or more nuclear waste management or decommissioning funds in the taxation year or a previous taxation year.

(3) Paragraph 2 of subsection 14 (2) of the Regulation is amended by striking out “nuclear decommissioning fund or spent fuel management fund” and substituting “nuclear waste management or decommissioning fund”.

(4) Subsection 14 (2) of the Regulation is amended by adding the following paragraph:

4. Any amount that, but for this paragraph, is included in the corporation’s income from property for the year from property held in a nuclear waste management or decommissioning fund.

(5) Section 14 of the Regulation is amended by adding the following subsections:

(2.1) For the purposes of paragraph 1 of subsection (2), the transfer by the corporation of an amount from one nuclear waste management or decommissioning fund to another nuclear waste management or decommissioning fund shall not be included in the calculation of the amount of total contributions to the fund to which the amount is transferred.

(2.2) In calculating the amount of a deduction under subsection (2) for a taxation year, the corporation shall not include any amount that was deducted under that subsection in determining its income from a business or property for a previous taxation year.

3. Subsection 15 (1) of the Regulation is amended by striking out “nuclear decommissioning fund or a spent fuel management fund” and substituting “nuclear waste management or decommissioning fund”.

4. Section 17 of the Regulation is revoked and the following substituted:

17. (1) If a corporation is required to make a payment under section 89 of the Act for a taxation year, it shall deliver to the Minister of Finance a return for the taxation year, in the form and containing the information required by section 150 of the Federal Act.

(2) If a corporation is required to make a payment under section 90 of the Act for a taxation year, it shall deliver to the Minister of Finance a return for the taxation year, in the form and containing the information required by section 75 of the Corporations Tax Act.

(3) A return required to be delivered under subsection (1) or (2) must be delivered within six months after the end of the taxation year to which the return relates. 

5. Paragraph 3 of subsection 18 (1) of the Regulation is revoked and the following substituted:

3. Subsections 79 (1) and 83 (1) of the Corporations Tax Act do not apply if,

i. the corporation’s first taxation year ending after April 1, 1999 ends before January 1, 2006, and

ii. the corporation has made a reasonable attempt, in the opinion of the Minister of Finance, to calculate the amount of its instalments payable for the taxation year.

4. Despite paragraph 3,

i. subsection 79 (1) of the Corporations Tax Act applies after December 31, 2005 if the corporation has a deficiency in its tax account on January 1, 2006, and interest shall be calculated commencing January 1, 2006, and

ii. subsection 83 (1) of the Corporations Tax Act applies after December 31, 2005 if the corporation has a surplus in its instalment account on January 1, 2006, and interest shall be calculated commencing January 1, 2006.

6. (1) Subject to subsections (2) and (3), this Regulation comes into force on the day it is filed.

(2) Sections 1, 2, 3 and 4 shall be deemed to have come into force on April 1, 1999.

(3) Section 5 comes into force on January 1, 2006.

Made by:

Dwight Duncan

Minister of Finance

Date made: December 28, 2005.