Ontario Jobs and Opportunity Bonds

Information Notice 6030
Published: December 2008
Content last reviewed: November 2010
ISBN: 978-1-4249-8650-7 (Print), 978-1-4249-8652-1 (PDF), 978-1-4249-8651-4 (HTML)

Publication Archived

Notice to the reader: This publication was archived and kept for historical purposes. Use caution when you refer to it, since it reflects the law in force at the time it was released and may no longer apply.

About this Notice

The purpose of this notice is to inform corporations and their representatives that the Minister of Finance has amended O.Regulation 155/03 to provide a refund to certain corporations who receive interest from Ontario Jobs and Opportunity Bonds (OJOBs).


Ontario currently provides a tax incentive for corporations who invest in OJOBs by allowing a special deduction in computing income for tax purposes. The special deduction is equal to the interest earned on OJOBs and makes the OJOBs interest received by a corporation tax free.

Starting in the 2009 taxation year, the Canada Revenue Agency (CRA) will administer corporate income taxes, corporate minimum tax, capital tax and special additional tax on life insurers on behalf of Ontario. A consequence of the harmonization of the corporate tax administration is that Ontario is required to adopt the federal income tax base for taxation years ending after December 31, 2008. As a result, the special deduction cannot be provided under the Taxation Act, 2007 for taxation years ending after December 31, 2008 because Ontario must follow federal deductions to arrive at the common tax base.

Amendment of O. Regulation 155/03

Technical amendments to O.Regulation 155/03 enable the Minister to provide a refund to corporations who receive interest from OJOBs. 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% of the amount of any loss (multiplied by the corporation's Ontario allocation factor for the year) that it would have incurred as a result of having been entitled to deduct its OJOB interest from its income.


Corporations are required to apply in writing for a refund within one year of their 2009 taxation year end. A refund form will be available early in 2009.

Page: 2677  |