Notice to the reader: The Ontario Opportunities Bonds matured on May 6, 2008. As a result, the incentive ceased to be in effect for individuals as of December 31, 2008, and for corporations for taxation years ending after May 31, 2009.
Expired
A single series of Ontario Opportunity Bonds (OOBs) were issued in May 2003 for a five-year term at an annual interest rate of 4.25 per cent. The interest earned on bonds is taxable. However, individuals, trusts and partnerships that purchased OOBs are entitled to a refund of the tax paid on the bond interest earned.
Note: Ontario's Corporations Tax Act provided a tax incentive for corporations that invested in OOBs by allowing a special deduction in computing income. As a result of Ontario harmonizing its corporate income tax with the federal income tax base as of January 1, 2009, corporations are required to apply in writing for a refund [PDF - 366 KB] within one year of their 2009 taxation year end. For more information, please read Information Notice 6030 entitled Ontario Jobs and Opportunity Bonds.
How is the refund calculated?
- For individuals and trusts, the refund is based on the amount of Ontario tax paid on the OOB interest.
- For individuals who own bonds through a partnership, the refund is limited to the tax paid on the OOB interest proportionate to their share of the partnership's net income.
How do I receive the refund?
- Individuals receive the refund automatically from the Ontario Ministry of Finance.
- A trust must complete form 2544A - Application for Tax Refund - Trust [PDF - 114 KB].
- A partnership must complete form 2542A - Application for Tax Refund - Partnership [PDF - 130 KB].
