Industry News

Changes to Tax Service

The Ministry of Revenue has launched ONT-TAXS (Ontario's Tax Services), an initiative to make services easier, faster and more convenient for Ontario's businesses.

The first step was to launch 1-866-ONT-TAXS, a single toll-free number that replaces 39 existing toll-free numbers. Clients now have "one-window" service delivery and convenient access to information, 24 hours a day/7 days a week.

Remaining parts of the ONT-TAXS initiative that are coming soon include:

• one Business Number for simpler transactions;
• 24/7 access to on-line services including paying taxes electronically,
• plus online viewing of tax account history; and
• improvements to service delivery (for example: accessible service;
• simplified returns; and a reduction in the number of forms and letters).

For more information on the ONT-TAXS initiative, go to the Ministry of Revenue's website at http://www.rev.gov.on.ca/english/about/onttaxs.html

New Legislation Proposed - Ideas for the Future Act, 2008

On September 23, 2008, the Ontario government introduced new legislation to support business start-ups that commercialize new technology by public research institutions. If the legislation is approved, new businesses in Ontario that commercialize eligible intellectual property developed by qualifying Canadian universities, colleges or research institutes would be eligible to claim a 10-year corporate income tax refund.

The tax exemption - the first of its kind in Canada - would encourage commercialization of public research in areas such as bio-economy/clean technologies, advanced health technologies, and telecommunications, computer and digital technologies.

More information can be found at the Ministry of Finance's website at http://www.fin.gov.on.ca/english/media/2008.html

Current programs and tax incentives designed to encourage innovation in Ontario include:

Ontario Innovation Tax Credit (OITC)

• Small and medium-sized Ontario corporations are able to claim a 10 per cent refundable tax credit on qualifying research and development (R&D) expenditures in Ontario.

Ontario Research and Development Tax Credit

• For taxation years ending after 2008, Ontario corporations are able to claim a 4.5 per cent non-refundable tax credit on qualifying R&D expenditures in Ontario.

Ontario Business-Research Institute (OBRI) Tax Credit

• Ontario corporations are able to claim a 20 per cent refundable tax credit for qualifying R&D expenditures incurred in Ontario as part of an eligible research contract with an eligible Ontario research institute. Ontario corporations are able to claim the OITC in addition the OBRI Tax Credit for potential combined Ontario tax credits of 30% on qualifying R&D expenditures in Ontario.

Innovation Demonstration Fund

• Provides financial support of up to 50 per cent of eligible costs to help Ontario companies with the commercialization and initial demonstration of their innovative technologies.

Next Generation of Jobs Fund with three streams of funding:

• Jobs and Investment Program to help companies in a range of sectors to expand in Ontario and develop innovative products for global markets - up to 15 per cent of eligible project costs.
• Biopharmaceutical Investment Program to support the expansion of research and advanced manufacturing by pharmaceutical and biotechnology firms - up to 20 per cent of eligible project costs.
• Strategic Opportunities Program to support industry-led, public-private collaborations focused on increasing Ontario's innovation expertise in the bio-economy and clean technologies, advanced health technologies and creative industries - up to 25 per cent of eligible project/program costs.

Ontario Research Commercialization Program

Provides grants ranging from $100,000 to $750,000 a year for up to three years, to help publicly funded Ontario research institutions and not-for-profit organizations transfer their research to the marketplace.

WSIB/Excellence in Manufacturing Consortium (EMC) Safety Group (SG)

The Excellence in Manufacturing Consortium is taking applications for its 2009 Safety Group.

Safety Group members implement world-class safety initiatives and continue to achieve double-digit percentage reductions in accident frequency and severity, as well as out-performing Ontario manufacturers' average.
Go to EMC Safety Group for information on how to join at

http://www.emccanada.org

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