[38] Bill 117 Royal Assent (PDF)
Bill 117 2006
An Act to amend
the Income Tax Act
to provide for an
Ontario home electricity payment
Note: This Act amends the Income Tax Act. For the legislative history of the Act, see Public Statutes - Detailed Legislative History on www.e-Laws.gov.on.ca.
Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:
1. The Income Tax Act is amended by adding the following section:
Ontario home electricity payment
Definitions
8.6.1 (1) In this section,
"family income" means, in respect of an individual for 2005, the sum of,
(a) the individual's income for 2005, and
(b) the income for 2005, if any, of the individual's qualified relation, if the individual has a qualified relation at the end of the 2005 taxation year; ("revenu familial")
"income" has the meaning given to that expression by subsection 8 (1); ("revenu")
"individual" means a person other than,
(a) a corporation,
(b) a trust or estate referred to in subdivision k of Division B of Part I of the Federal Act,
(c) a qualifying environmental trust,
(d) a person who is on active military service as a member of the armed forces of a country other than Canada and who is not a Canadian citizen, and a member of his or her family, and
(e) a person who, by virtue of an agreement, convention or tax treaty entered into by Canada and another country, is not required to pay tax under the Federal Act with respect to the taxation year; ("particulier")
"occupancy cost" has the meaning given to that expression by subsection 8 (1) and includes an amount deemed to be an occupancy cost under subsection 8 (8); ("coût d'habitation")
"qualified dependant" means, in respect of an individual at a particular time, a person who, at that particular time,
(a) was the individual's child or was dependent for support,
(i) on the individual, or
(ii) on the person who was, at that particular time, the individual's qualified relation,
(b) resided with the individual,
(c) was under the age of 19 years,
(d) was not a parent who resided with his or her child, and
(e) was not a qualified relation of any individual; ("personne à charge admissible")
"qualified relation" means, in respect of an individual at a particular time, a person who was, at that particular time, the individual's cohabiting spouse or common-law partner for the purposes of subdivision a.1 of Division E of Part I of the Federal Act. ("proche admissible")
Deemed overpayment on account of tax
(2) If an individual is deemed under this section to have made an overpayment on account of tax payable under this Act for 2005, the Provincial Minister shall make an Ontario home electricity payment to the individual in accordance with this section.
Who qualifies
(3) An individual is deemed to have made an overpayment on account of tax payable under this Act for the 2005 taxation year if the following conditions are satisfied:
1. The individual is resident in Ontario on December 31, 2005 and a return of income in respect of the individual's 2005 taxation year is filed for the purposes of this Act before January 1, 2007.
2. The individual has not died on or before October 1, 2006 and is resident in Ontario on that day.
3. The individual is not confined to a prison or similar institution on December 31, 2005 or on October 1, 2006 and is not confined to a prison or similar institution during 2005 for one or more periods that in total exceed six months.
4. The individual or his or her qualified relation reported an occupancy cost in his or her return of income for 2005 for the purposes of claiming a property tax credit under subsection 8 (3), (3.1) or (3.2) and was entitled to deduct from tax otherwise payable under this Act for that year an amount calculated under subsection 8 (3), (3.1) or (3.2).
5. The Provincial Minister has not made an Ontario home electricity payment to a person who was the individual's qualified relation at the end of the 2005 taxation year.
6. The amount of the individual's Ontario home electricity payment as determined under subsection (4) is greater than zero.
Amount of the payment
(4) The amount of an Ontario home electricity payment to which an individual is entitled is determined as follows:
1. If the individual does not have a qualified relation or a qualified dependant on December 31, 2005, the amount of the individual's Ontario home electricity payment is the amount calculated using the formula,
$60 - (0.01 × A)
in which,
"A" is the amount, if any, by which the individual's income exceeds $14,000.
2. If the individual has a qualified dependant or a qualified relation on December 31, 2005, or both, the amount of the individual's Ontario home electricity payment is the amount calculated using the formula,
$120 - (0.01 × B)
in which,
"B" is the amount, if any, by which the individual's family income exceeds $23,000.
Determination by the Provincial Minister
(5) No application for an Ontario home electricity payment is required and the Provincial Minister shall determine,
(a) whether an individual is entitled to receive an Ontario home electricity payment; and
(b) the amount of any payment to which the individual is entitled.
Notice and payment
(6) If the Provincial Minister determines that an individual is entitled to an Ontario home electricity payment, the Provincial Minister,
(a) shall send a notice to the individual setting out the amount of the payment to which the individual is entitled; and
(b) shall make the payment in accordance with the determination.
Determination by Provincial Minister is final
(7) The determination by the Provincial Minister of whether an individual is entitled to receive an Ontario home electricity payment and the amount of any payment under this section is final and is not subject to review.
No set off
(8) No portion of an Ontario home electricity payment shall be retained by the Provincial Minister and applied to reduce any debt to the Crown in right of Ontario or in right of Canada.
Time limit for payment
(9) Despite subsection (6), the Provincial Minister shall not make an Ontario home electricity payment under this section after December 31, 2007 and no individual is entitled to receive a payment under this section after that date unless the individual's entitlement to the payment arose by reason of an assessment or reassessment made under this Act before January 1, 2008.
Minimum payment
(10) If the amount of an Ontario home electricity payment to which an individual is entitled is greater than zero but less than $10, the Provincial Minister shall make an Ontario home electricity payment to the individual in the amount of $10.
Repayment after assessment or reassessment
(11) If, as a result of an assessment or reassessment under this Act, it is determined that an individual received an Ontario home electricity payment to which he or she is not entitled or received an amount greater than the amount to which he or she is entitled, the individual shall repay the amount or the excess amount, as the case may be, to the Provincial Minister.
Exception
(12) Subsection (11) does not apply if,
(a) the amount that is repayable is not more than $2; or
(b) the assessment or reassessment referred to in subsection (11) is made after December 31, 2007.
Recovery of excess amounts
(13) An amount repayable under subsection (11) that has not been repaid to the Provincial Minister,
(a) constitutes a debt to the Crown in right of Ontario and may be recovered by way of deduction, set-off or in any court of competent jurisdiction in proceedings commenced at any time or in any other manner provided by this Act; and
(b) shall be deemed for the purposes of sections 31 to 36 to be tax payable under this Act.
No interest payable
(14) No interest is payable on the amount of an Ontario home electricity payment made by the Provincial Minister under this section or repayable by an individual under this section.
Bankruptcy
(15) For the purposes of subsection (4), if an individual is bankrupt at any time in 2005,
(a) the individual shall be deemed to have only one taxation year in 2005, beginning on January 1 and ending on December 31; and
(b) the individual's income for that taxation year shall be deemed to be the total amount of the individual's income for 2005.
Powers and duties not transferred
(16) In the application of sections 31 to 36 to recover amounts referred to in subsection (11), all references to "Minister" and "Provincial Minister" shall be read as references to "Minister of Finance", and subsection 31 (4) shall not apply.
Repeal
(17) This section is repealed on January 1, 2008.
Commencement
2. This Act comes into force on the day it receives Royal Assent.
Short title
3. The short title of this Act is the Income Tax Amendment Act (Ontario Home Electricity Relief), 2006.
EXPLANATORY NOTE
This Explanatory Note was written as a reader's aid to Bill 117 and does not form part of the law. Bill 117 has been enacted as Chapter 18 of the Statutes of Ontario, 2006.
The enactment of section 8.6.1 of the Income Tax Act provides for a one-time only Ontario home electricity payment by the Minister of Finance to low-income individuals who file their 2005 personal income tax returns on or before December 31, 2006 and who qualify for an Ontario property tax credit for 2005.
The amount of an Ontario home electricity payment is $60 for a single person whose net income for 2005 does not exceed $14,000 and $120 for a family whose family net income for 2005 does not exceed $23,000. The amount of the payment is proportionately reduced for a single person whose net income exceeds $14,000 but is less than $20,000 for 2005 and for a family whose family net income exceeds $23,000 but is less than $35,000 for 2005. No amount is payable to a single person whose net income is $20,000 or more or to a family whose family net income is $35,000 or more for 2005.
An individual is not required to apply for an Ontario home electricity payment to qualify to receive it.