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No Ontario Tax Refunds in 2011 for Low Income Earners 

Canadian Tax Adviser

March 13, 2012

 

Paul Hickey

Toronto, National Tax Centre

 

The Ontario Ministry of Finance has introduced a new "Ontario Trillium Benefit" monthly payment program that offers payouts of several former refundable Ontario tax credits for low- to moderate-income taxpayers in Ontario, beginning in July 2012. Prior to 2011, these refundable tax credits were paid once a year after these taxpayers filed their tax returns with a refund claim. In 2011, Ontario began to pay these three credits to eligible taxpayers in quarterly instalments.

As a result of this change, taxpayers who are accustomed to receiving these refunds on filing their tax returns may be surprised when they learn that they won't be getting the expected tax refunds on their 2011 personal tax returns.

 

The Ontario Trillium Benefit combines the following credits into a monthly payout for eligible taxpayers:

 

  • The Ontario Sales Tax Credit
  • Ontario Energy and Property Tax Credit
  • Northern Ontario Energy Credit.

 

To receive the Ontario Trillium Benefit, taxpayers that are eligible for at least one of these credits must file Ontario Form ON-BEN, which is included with the 2011 T1 General Income Tax and Benefit Return package.

 

For more information, contact your KPMG adviser.

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