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

For corporate tax years ending on or after January 1, 2009, Ontario corporations will benefit from a 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 income taxes, and one tax administrator.

Single administration will save Ontario businesses up to $100 million per year in compliance costs and an additional $90 million in reduced corporate taxes due to the adoption by Ontario of the federal tax base.

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

On April 3, 2008, the CRA, through the Film Services Units located in the Vancouver, Montreal, 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 if my tax year ended on or before December 31, 2008?

There is no change in the filing procedure for corporations that are claiming an Ontario media tax credit for a tax year ending on or before December 31, 2008. As in previous years, a corporation must still claim the media tax credit on its Ontario CT23 Corporations Tax and Annual Return (CT23 return) and will receive a Notice of Assessment and refund, if applicable, from the Ontario Ministry of Revenue (OMoR).

It should be noted that, with few exceptions, the CT23 Short-Form Return cannot be used by corporations claiming refundable media tax credits. View the criteria for using the CT 23 Short-Form Return.

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

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

Where do I file an Ontario media tax credit claim if my tax year ended on or after January 1, 2009?

Corporations with tax years ending on or after January 1, 2009 must file a T2 Corporation Income Tax 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 wish to file your T2 return electronically, visit the Corporation Internet Filing page on the CRA website.

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

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

For tax years that ended 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 begin to process the media tax credit claim(s) until it receives all of the required documentation.

Who will assess my return?

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

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

Who will issue my refund cheque?

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

For tax years that ended 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 or visit their website.

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

For tax years that ended on or before December 31, 2008, information about the status of your Ontario media tax credit claim is available from the Canada Revenue Agency's Film Services Unit. View contact information for the CRA's Film Services Unit.

For tax years that ended on or before December 31, 2008, you should contact the OMoR at 905-433-6463 or 905 440 4212 for enquiries related to partial refunds of the Ontario Film and Television Tax Credit or the Ontario Production Services Tax Credit.

For tax years that ended on or after January 1, 2009, you should direct all enquiries regarding your T2 return and media tax credit claims to the CRA's Film Services Unit. View contact information for the CRA's Film Services Unit.

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

For tax years that ended 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) with the OMoR.

For tax years that ended 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 OSRTC are available on the Ontario Ministry of Revenue 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 that ended 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 OMoR at one of the following numbers:

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

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

What is the filing deadline for my corporate tax return?

Corporations are required to file their Ontario CT23 return and/or T2 return within six (6) months of the end of the corporation's tax year.

For adjustments to a CT23 return, the "normal reassessment period" is the period that ends four (4) years after the day of mailing of an original assessment. Additional information is available.

How do I determine when I became statute-barred under Ontario legislation?

For tax years that ended on or before December 31, 2008, the Ontario Corporations Tax Act statue-barred rule applies for Ontario corporations as follows:

A Canadian-controlled private corporation (CCPC) becomes statute barred after four (4) years from the date of mailing of the original notice of assessment.
A non-CCPC becomes statute-barred after five (5) years from the date of mailing of the original notice of assessment.

How do I determine when I became statute-barred under federal legislation?

For tax years that ended on or after January 1, 2009, the federal statute barred rules will apply for Ontario media credits since Ontario corporate tax refunds will be claimed on a single T2 Corporation Income Tax Return.

The normal reassessment period for a Canadian controlled private corporation (CCPC) is the period that ends three years after the day of mailing of an original assessment for a tax year. If the corporation was not a CCPC at the end of the tax year, the CRA can usually reassess a return within four years from the mailing date of the original notice of assessment for the tax year.

For more information, you can call the CRA at 1 800 959 5525 (toll free) or you can visit the CRA's website at www.cra-arc.gc.ca.

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, processing takes place within 60 days of the CRA's receipt of your complete claim. If your claim is selected for audit, the processing time is usually within 120 days of receipt of a complete claim. The CRA is committed to meeting these service standards 90% 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 that ended 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 as well as a certificate of eligibility is filed with the OMoR.

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

A T2 return which includes a claim for Ontario media tax credits and all other required schedules;
The completed schedule(s) for the applicable Ontario media tax credit(s); and
The certificate(s) of eligibility 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 T2SCH 556 – Ontario Film and Television Tax Credit schedule;
the Canadian Film or Video Production certificate (Part A)—and, where applicable, 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 OMoR 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. 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.

Additional information is contained in the CRA's T2 Corporation – Income Tax Guide.

The OMoR allowed a prepayment of up to 85% 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 that ended on or before December 31, 2008, the OMoR is responsible for reviewing the claim and, where appropriate, issuing a partial refund of up to 85% of the OFTTC and OPSTC amount. These refunds are sent within six weeks of receipt of a complete claim by the OMoR, with the remainder of the refund following within 120 days.

For tax years that ended 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 begin to process the media tax credit claim until it receives all of the required documentation (i.e. 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, processing will take place within 60 days of the CRA's receipt of your complete claim (see question 19). If your claim is selected for audit, the processing time is usually within 120 days of receipt of a complete claim. The CRA is committed to meeting these service standards 90% of the time.

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

For tax years that ended 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 ON100 Notice of Objection – Ontario Corporations Tax Act.

For tax years that ended on or after January 1, 2009, you can file a Notice of Objection with the CRA using form T400A Objection - Income Tax Act.

More information about the objections process is available on the CRA's 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 the date of receipt of 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, you can make a toll free call to 1 800 959-8281 or you can visit the "Resolving Disputes" page on the CRA's website.

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

You can appeal your (re)assessment related to Ontario tax credits by filing a form ON200 Notice of Appeal – Ontario Corporations Tax Act with the Superior Court of Justice (Ontario). This appeal must be filed within 90 days from the date of the notification that the Minister has confirmed the (re)assessment or has reassessed your return.

How do I file an appeal?

You must attend the appropriate court office of the Superior Court of Justice (Ontario)—in person—to file the Notice of Appeal and to pay the applicable court filing fee. You are also required to send one copy of the Notice of Appeal, as filed, including the action number and the court location, by registered mail to:

Canada Revenue Agency
c/o Assistant Commissioner, Appeals Branch
250 Albert Street, 14th Floor
Ottawa ON K1A 0L5

Where can I get more information about the appeals process, e.g. forms, timelines, etc.?

For more information about the appeals process, you can visit the CRA's 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 that 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.

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 to the CRA.

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

Ontario Refundable Media Tax Credits

Frequently Asked Questions

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?