Ontario Job and Opportunity Bonds for Corporations

Frequently Asked Questions

What are Ontario Job and Opportunity Bonds?

Ontario Jobs and Opportunity Bonds (OJOBs) were issued in May 2003 as a single series of bonds with a five-year term. Interest was payable in equal semi-annual instalments. OJOBs matured on May 6, 2008.

Why invest in OJOBs?

Ontario's Corporation Tax Act provided a tax incentive for corporations that invested in OJOBs. It allowed a special deduction from income equal to the interest earned on OJOBs. This made the OJOB interest received by a corporation tax-free.

Ontario harmonized its corporate income tax with the federal income tax base as of January 1, 2009. As a result the special deduction for OJOB income cannot be provided for tax years ending in 2009. Corporations may instead apply for a tax refund. For further information see Information Notice 6030.

How is the refund calculated?

Corporations with taxable income in 2009 will be refunded the amount of tax paid on OJOB interest. Corporations reporting a loss in 2009 will receive 14 per cent of the amount of loss (multiplied by the allocation factor) that would have been incurred if it had been entitled to deduct its OJOB interest from its income.

How do I receive my OJOB refund for tax paid in a 2009 year end?

Corporations should complete and file the Ontario Jobs and Opportunity Bond (OJOB) Refund Claim [PDF - 366 KB]. This form should be received by the Ministry within one year of the corporation's 2009 taxation year end.

Where can I get additional information on OJOBs?

Please contact the Ministry of Finance at 1 866 668-8297.

Page: 3075  |