Ontario Refundable Media Tax Credits

Frequently Asked Questions

General

Filing a media tax credit claim

Service standards

Assignment of a refund

Prepayment

Tax advisory/rulings

Objections

Appeals

Service complaint resolution


What are the benefits of the single administration by the Canada Revenue Agency (CRA) of federal and Ontario corporate taxes for businesses that file their corporate tax returns in Ontario?

The result of the administration of federal and Ontario corporate taxes by the CRA is a more streamlined tax system for corporations that file their tax returns in Ontario.

Ontario corporations whose tax years end on or after January 1, 2009, benefit from the single T2 Corporation Income Tax Return (T2 return), one set of rules, one audit, one process for objections and appeals, one point of contact and intake centre for voluntary disclosures related to corporate taxes and one tax administrator.

Single administration saves Ontario businesses up to $100 million per year in compliance costs and an additional $90 million in reduced corporate taxes.


Who is responsible for reviewing Ontario refundable media tax credit claims?

On April 3, 2008, the CRA, through the film services units located in its Vancouver, Montréal, and Toronto Centre tax services offices, began reviewing and auditing the following Ontario refundable media tax credit claims:

  • Ontario film and television tax credit (OFTTC)
  • Ontario production services tax credit (OPSTC)
  • Ontario computer animation and special effects tax credit (OCASETC)
  • Ontario interactive digital media tax credit (OIDMTC)
  • Ontario book publishing tax credit (OBPTC)
  • Ontario sound recording tax credit (OSRTC)

Where do I file an Ontario media tax credit claim for tax years ending on or before December 31, 2008?

For tax years ending on or before December 31, 2008, a corporation must claim the media tax credit on its Ontario CT23 Corporations Tax and Annual Return (CT23 return) and will receive a notice of assessment and any applicable refund from the Ontario Ministry of Finance (ministry).

It should be noted that corporations claiming refundable media tax credits cannot use the CT23 Short-Form Return. View the criteria for using the CT23 Short-Form Return.

You should submit your completed Ontario CT23 return, along with the applicable forms, to the following address:

Ontario Ministry of Finance
Corporations Tax
33 King Street West
PO Box 620
Oshawa ON  L1H 8E9


Where do I file an Ontario media tax credit claim for tax years ending on or after January 1, 2009?

Corporations with tax years ending on or after January 1, 2009, must file a T2 return with the CRA and attach the appropriate schedule(s) and certificate(s) of eligibility required to claim one or more Ontario media tax credit(s).

The mailing address for filing your T2 return and applicable schedules will vary based on where the corporation is located. A list of mailing addresses is available on the CRA website.

If you want to file your T2 return electronically, go to the Corporation Internet Filing page on the CRA website.


How do I file a claim for an Ontario media tax credit?

For tax years ending on or before December 31, 2008, you must submit an Ontario CT23 return, along with all of the necessary documentation (certificates of eligibility, etc.) and claim forms (for the OSRTC and the OBPTC only), to the ministry for assessment. The ministry will then process the claim and forward the information electronically to the CRA for review and verification.

For tax years ending on or after January 1, 2009, you must file a T2 return, complete with the appropriate certificate(s) of eligibility and corresponding schedule(s), with the CRA for assessment, review and verification.

The CRA will not start processing the media tax credit claim(s) until it receives all of the required documentation.


Who will assess my return?

For tax years ending on or before December 31, 2008, the ministry will process all Ontario CT23 returns and forward them to the CRA for audit verification. You will receive your assessments and reassessments from the ministry.

For tax years ending on or after January 1, 2009, the CRA will process all T2 returns. The CRA will conduct the audit reviews of Ontario refundable media tax credits and send out all assessments and reassessments.


Who will issue my refund cheque?

For tax years ending on or before December 31, 2008, cheques for corporate tax refunds that are claimed on an Ontario CT23 return will be issued by the ministry.

For tax years ending on or after January 1, 2009, cheques for both federal and Ontario corporate tax refunds that are claimed on a T2 return will be issued by the CRA. The amount of the refund cheque will be net of any outstanding federal and/or provincial taxes.


How can I obtain a certificate of eligibility for the media tax credits?

You should contact the Ontario Media Development Corporation at 416 314-6858 or visit their website.


Who should I contact about the status of my Ontario media tax credit claim?

For tax years ending on or before December 31, 2008, information about the status of your Ontario media tax credit claim is available from your CRA film services unit. However for enquiries related to the partial refunds of the Ontario film and television tax credit or the Ontario production services tax credit, please contact the ministry at 905 433-6463 or 905 440-4212.

For tax years ending on or after January 1, 2009, you should direct all enquiries regarding your T2 return and media tax credit claims to your CRA film services unit.


Which form(s) do I use to file my Ontario media tax credit claim?

For tax years ending on or before December 31, 2008, you must file an Ontario CT23 return along with the appropriate certificate(s) of eligibility and claim form(s) (for the OSRTC and the OBPTC only) with the ministry.

For tax years ending on or after January 1, 2009, you must file a T2 return and the appropriate certificate(s) of eligibility and schedule(s) with the CRA for the following tax credits:


Where can I get the forms that I need?

The Ontario CT23 return as well as the claim forms for the OBPTC and the OSRTC are available on the ministry website.

The T2 return and the applicable schedules are available on the CRA website.


Will I still need to use my Ontario corporations tax account number or just my Business Number?

For tax years ending on or before December 31, 2008, you must include your Ontario corporations tax account number on your CT23 return and your Business Number on your T2 return.

If you need an Ontario corporations tax account number, please contact the ministry at one of the following numbers:

  • Telephone within North America: 1 866 ONT TAXS (1 866 668-8297)
  • Teletypewriter (TTY): 1 800 263-7776
  • Telephone outside North America: 1 905-433-6000

For tax years ending on or after January 1, 2009, you will file a single T2 return using your Business Number. Information about the Business Number and your CRA accounts is available on the CRA website.


What is the filing deadline for my corporate tax return?

Corporations must file their Ontario CT23 return and/or T2 return within six months of their corporation's tax year-end.


What is the normal reassessment period for tax years ending on or before December 31, 2008?

For tax years ending on or before December 31, 2008, the normal reassessment period is as follows:

  • For a Canadian-controlled private corporation (CCPC), it is the period that ends four years after the mailing date of the original notice of assessment.
  • For a non-CCPC it is the period that ends five years after the mailing date of the original notice of assessment.

For more information, please see Interpretation Bulletin 3009R, Statute Barred Periods.


What is the normal reassessment period for tax years ending on or after January 1, 2009?

For tax years ending on or after January 1, 2009, the normal reassessment period is as follows:

  • For a Canadian-controlled private corporation (CCPC), it is the period that ends three years after the mailing date of the original notice of assessment.
  • For a non-CCPC it is the period that ends four years after the mailing date of the original notice of assessment.

For more information, call the CRA at 1 800 959-5525 or visit the CRA website.


How long will it take to process my claim?

If your claim for an Ontario film and television tax credit or an Ontario production services tax credit is not selected for audit by the CRA, it will be processed within 60 days of the CRA receiving your complete claim. If your claim is selected for audit, the processing time is usually within 120 days of receiving a complete claim. The CRA is committed to meeting these service standards 90 per cent of the time. All other Ontario media tax credits will be processed within a reasonable time frame.


What is considered to be a "complete claim"?

For tax years ending on or before December 31, 2008, a claim is considered to be complete when a CT23 return that includes a claim for Ontario media tax credits, applicable schedules as well as certificates of eligibility are filed with the ministry.

For tax years ending on or after January 1, 2009, a claim is considered to be complete when ALL of the following documentation are filed with the CRA:

  • a T2 return that includes a claim for one or more Ontario media tax credits;
  • the completed schedule(s) for the applicable Ontario media tax credit(s); and
  • the certificate(s) of eligibility (or copy/copies) and other required documentation.

For example, if a corporation is claiming the Ontario film and television tax credit and the Canadian film or video production tax credit, both claims will be considered complete once the following forms are filed with the CRA:

  • the certificate of eligibility issued by the Ontario Media Development Corporation;
  • the completed Schedule 556, Ontario Film and Television Tax Credit;
  • the Canadian Film or Video Production Certificate (Part A) and, if available at the time of filing the T2 return, the Certificate of Completion (Part B) issued by the Canadian Audio Visual Certification Office (CAVCO);
  • Form T1131, Claiming a Canadian Film or Video Production Tax Credit; and the T2 return.

The ministry allowed my corporation to assign my Ontario media tax credit refund to a third party. Will the CRA allow the assignment of a refund?

A direction to assign a tax refund does not apply under CRA administration. However the CRA does allow a corporation to redirect its tax refund—net of any taxes owing—to the mailing address of its choice, for example, a financial institution. The name of the payee on the refund cheque, however, will be that of the eligible corporation filing the claim.

More information can be found in Guide T4012, T2 Corporation – Income Tax Guide.


The ministry allowed a prepayment of up to 85 per cent for claims filed for the Ontario film and television tax credit (OFTTC) and the Ontario production services tax credit (OPSTC). Will the CRA continue with this practice?

For tax years ending on or before December 31, 2008, the ministry is responsible for reviewing the claim and, where appropriate, issuing a partial refund of up to 85 per cent of the OFTTC and the OPSTC amount. These refunds are sent within six weeks of the ministry's receiving a complete claim, with the remainder of the refund following within 120 days.

For tax years ending on or after January 1, 2009, media tax credit claimants must file their T2 return along with the required schedule(s) and certificate(s) of eligibility with the CRA. The CRA will not start processing the media tax credit claim until it receives all of the required documentation (such as, certificates of eligibility for all media credits being claimed) and will not issue partial prepayments for the Ontario film and television and Ontario production services tax credits.

The CRA will process both federal and Ontario claims together and will issue one combined refund. If your claim for an Ontario film and television tax credit or an Ontario production services tax credit is not selected for audit, it will be processed within 60 days of the CRA's receiving your complete claim. If your claim is selected for audit, the processing time is usually within 120 days of receiving a complete claim. The CRA is committed to meeting these service standards 90 per cent of the time.


Where do I send my request for an advance tax ruling or a technical interpretation under the Ontario Corporations Tax Act or Taxation Act, 2007 for issues involving Ontario refundable media tax credits?

You should send your request(s) for advance tax rulings or technical interpretations to the CRA.

Additional information can be found in Information Circular 70-6R5, Advance Income Tax Rulings.


What can I do if I disagree with my assessment or reassessment?

For tax years ending on or before December 31, 2008, if you disagree with a (re)assessment, you can file a notice of objection with the CRA within 180 days from the date of the notice of (re)assessment, using Form 0N100, Notice of Objection – Ontario Corporations Tax Act.

For tax years ending on or after January 1, 2009, you can file a notice of objection with the CRA within 90 days from the day the CRA mails the notice of (re)assessment, using Form T400A, Objection - Income Tax Act.

More information about the objections process is available on the CRA website.


How long will it take for my objection to be dealt with?

The review process for an objection varies according to the subject(s) of any disagreement or dispute. The CRA's goal is to send an initial letter within 30 calendar days of its receiving an objection.


What can I do if I disagree with the decision about my objection?

If you disagree with the decision about your objection, you can file an appeal. For information about how to file an appeal, call the CRA at 1 800 959-5525 or go to the Resolving Disputes page on the CRA website.


How can I appeal an assessment or reassessment related to Ontario media tax credits?

For tax years ending on or before December 31, 2008, an appeal of your (re)assessment is filed with the Ontario Superior Court of Justice.

For tax years ending on or after January 1, 2009, an appeal of your Ontario (re)assessment is generally filed with the Tax Court of Canada. However an appeal is made to the Ontario Superior Court of Justice, if the matter relates to an Ontario amount that is not based on an amount:

  • determined under the federal Income Tax Act (ITA), or
  • that can be appealed under the ITA.

Where can I get more information about the appeals process, for example, forms and timelines?

An appeal to the Ontario Superior Court of Justice is made using Form ON200, Notice of Appeal, which must be filed within 90 days from the date of the notification that the Minister of National Revenue has confirmed the (re)assessment or has reassessed your return.

For more information on filing an appeal with the Ontario Superior Court of Justice, go to the Ontario Corporations Tax page on the CRA website.

You do not need a form to file an appeal with the Tax Court of Canada. You can appeal in writing and state the reasons for your appeal and the relevant facts within 90 days from the mailing date of the notification that the Minister of National Revenue has confirmed the (re)assessment or has reassessed your return.

For more information on filing an appeal with the Tax Court of Canada, go to the Income tax page on the CRA website.


What can I do if I have exhausted all of the normal complaint channels and am still not satisfied with the service that I received from the CRA?

You have the right to make a formal complaint if you are not satisfied with the service you have received from the CRA. Before considering the service complaints process, the CRA strongly encourages you to:

  • try to resolve the issue with the CRA auditor with whom you have been dealing; and
  • in the event that you are not satisfied with the way in which your complaint has been handled, contact the auditor's team leader.

If you are still not satisfied with the way in which your complaint has been handled, you can refer the matter to the CRA – Service Complaints program.


What can I do if I am not satisfied with the review conducted by the CRA – Service Complaints program?

You can make a formal complaint to the Taxpayers' Ombudsman about the service that the CRA provided.

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