Ontario Changes Delivery of Tax Credits

The Ontario government is changing the way it delivers its Ontario Energy and Property Tax Credit (OEPTC) as well as its Northern Ontario Energy Credit (NOEC)  and Ontario Sales Tax Credit (OSTC). Instead of quarterly cheques, come July, all three will be rolled into the Ontario Trillium Benefit (OTB) and will be delivered to the low- to moderate-income Ontarians who qualify as monthly cheques.

"Through the OTB, the Province transformed the delivery of Ontario's key refundable tax credits by making payments to Ontarians earlier and more frequently than before,î the provincial government says. "This approach ensures that the payments better match when people incur these costs.î

The move has caused some heated discussion among recipients of the tax credit who still prefer to receive one, lump-sum payment. Ontario Finance Minister Dwight Duncan admits his government did a poor job of communicating the change. In future years, he promises, taxpayers will be given the option to choose monthly payments or a lump-sum payment.

Ontario instituted quarterly payments in 2011 with payments for the 2011-12 benefit year ó based on the 2010 personal income tax return ó going out in July 2011, December 2011, March 2012 and June 2012 for the OETPC and NOEC. The OSTC benefits were paid August 2011, November 2011, February 2012 and May 2012.