Ontario Opportunity Bonds
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.
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.
