A single series of Ontario Opportunity Bonds were issued in May, 2003 for a five-year term at an annual interest rate of 4.25%. The interest earned on bonds is taxable. However, individuals and trusts who purchased Ontario Opportunity Bonds are entitled to a refund of the tax paid on the bond interest earned.
Who is eligible for the refund of income tax on Ontario Opportunity Bond interest?
You are eligible for a refund of Ontario personal income tax if you:
- purchased an Ontario Opportunity Bond in April/May, 2003
- are a resident of Ontario on the last day of the taxation year
- file an income tax return for the taxation year
- report interest earned on the OOB as interest income on the tax return, and
pay tax for the taxation year.
How is the refund calculated?
- For individuals and trusts, the refund is based on the amount of Ontario tax paid on the bond interest.
- For individuals who own bonds through a partnership, the refund is limited to the tax paid on their share of the partnership's net income.
How do I receive the refund?
- Individuals receive the refund automatically from the Ontario Ministry of Revenue.
- A trust must complete form 2544A - Application for Tax Refund - Trust
. - A partnership must complete form 2542A - Application for Tax Refund - Partnership.
