[39] Bill 109 Royal Assent (PDF)
Bill 109 2010
An Act to amend the Taxation Act, 2007 to implement the Ontario energy and property tax credit and to make consequential amendments
Note: This Act amends the Taxation Act, 2007. For the legislative history of the Act, see the Table of Consolidated Public Statutes – Detailed Legislative History at 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. Subsection 23 (1) of the Taxation Act, 2007 is amended by adding the following paragraphs:
9. Subsection 104.37 (1) with respect to taxation years ending on or after December 31, 2010 that are base taxation years under Part V.8.
10. Subsection 104.38 (1) with respect to taxation years ending on or after December 31, 2010 that are base taxation years under Part V.8.
2. Paragraph 12.1 of subsection 84 (1) of the Act is repealed and the following substituted:
12.1 An Ontario energy and property tax credit under section 101.1 or 101.2.
3. Paragraph 4 of subsection 98 (5) of the Act is amended by striking out the portion before subparagraph i and subparagraph i and substituting the following:
4. No amount may be included in determining the amount of an individual's occupancy cost for a taxation year in respect of a principal residence that,
i. consists of premises that are part of a chronic care facility or other similar institution that is prescribed, or that are part of any long-term care home or home for special care, and
. . . . .
4. (1) The heading before section 101.0.1 of the Act is repealed and the following substituted:
Subdivision c - Ontario Energy and Property Tax Credit for 2010
(2) Subsection 101.0.1 (1) of the Act is amended by adding the following definitions:
"designated long-term care home" means, in respect of an individual, a designated principal residence of the individual that is a long-term care home in Ontario,
(a) that was exempt in whole or in part from municipal tax for the year, and
(b) for which no grant in lieu of municipal tax is payable by the owner under any statutory authority or, if payable, has not been paid; ("foyer de soins de longue durée désigné")
"reserve" has the same meaning as in the Indian Act (Canada); ("réserve")
(3) The definition of "specified threshold" in subsection 101.0.1 (1) of the Act is repealed.
(4) Subsection 101.0.1 (2) of the Act is repealed.
5. (1) Subsection 101.1 (1) of the Act is repealed and the following substituted:
Ontario energy and property tax credit, individual other than a senior
(1) An individual who is a qualifying individual for a taxation year ending after December 31, 2009 and before January 1, 2011 may claim an amount for the year in respect of and not exceeding his or her Ontario energy and property tax credit, if any, for the year.
(2) Clause 101.1 (2) (e) of the Act is amended by striking out "180 days" and substituting "90 days".
(3) Subsections 101.1 (3) and (4) of the Act are repealed and the following substituted:
Amount of tax credit
(3) Subject to section 101.3, the amount of a qualifying individual's Ontario energy and property tax credit under this section for a taxation year ending after December 31, 2009 and before January 1, 2011 is the amount, if any, calculated using the formula,
(A + B) – [0.02 × (C – D)]
in which,
"A" is the individual's energy amount equal to the lesser of,
(a) $200, and
(b) the sum of,
(i) the amount, if any, of the individual's occupancy cost for the taxation year less any amount included under paragraph 5 of subsection 98 (2) or paragraph 5 of subsection 98 (3),
(ii) the energy costs, if any, paid for the year by or on behalf of the individual or the individual's qualifying spouse or qualifying common-law partner in respect of a designated principal residence of the individual on a reserve in Ontario, if the individual is resident on a reserve in Ontario at any time in the year, and
(iii) 20 per cent of the amount, if any, paid by or on behalf of the individual or the individual's qualifying spouse or qualifying common-law partner for accommodation for the individual at any time in the year in a designated long-term care home,
"B" is the individual's property tax amount equal to the least of,
(a) $700,
(b) the individual's occupancy cost for the year, and
(c) the sum of,
(i) the lesser of $50 and the individual's occupancy cost for the year, and
(ii) an amount equal to 10 per cent of the individual's occupancy cost for the year,
"C" is,
(a) the greater of $20,000 and the individual's adjusted income for the year, if the individual did not have a qualifying spouse, qualifying common-law partner or qualified dependant on December 31, 2010, or
(b) the greater of $25,000 and the individual's adjusted income for the year, if the individual had a qualifying spouse, qualifying common-law partner or qualified dependant on December 31, 2010, and
"D" is,
(a) $20,000, if the individual did not have a qualifying spouse, qualifying common-law partner or qualified dependant on December 31, 2010, or
(b) $25,000, if the individual had a qualifying spouse, qualifying common-law partner or qualified dependant on December 31, 2010.
Receipt of a transitional Northern Ontario energy credit under Part V.7
(4) If an individual has a qualified relation on December 31, 2010 and receives a credit under Part V.7 for the taxation year, the individual and not the individual's qualified relation may claim an amount under this section for the taxation year.
6. (1) Subsection 101.2 (1) of the Act is repealed and the following substituted:
Ontario energy and property tax credit, seniors
(1) An individual who is a qualifying individual for a taxation year ending after December 31, 2009 and before January 1, 2011 may claim an amount for the year in respect of and not exceeding his or her Ontario energy and property tax credit, if any, for the year.
(2) Clause 101.2 (2) (c) of the Act is amended by striking out "180 days" and substituting "90 days".
(3) Subsections 101.2 (5), (5.1) and (6) of the Act are repealed and the following substituted:
Amount of tax credit
(5) Subject to section 101.3, the amount of a qualifying individual's Ontario energy and property tax credit under this section for a taxation year ending after December 31, 2009 and before January 1, 2011 is the amount, if any, calculated using the formula,
(A + B) – [0.02 × (C – D)]
in which,
"A" is the individual's energy amount equal to the lesser of,
(a) $200, and
(b) the sum of,
(i) the amount, if any, of the individual's occupancy cost for the taxation year less any amount included under paragraph 5 of subsection 98 (2) or paragraph 5 of subsection 98 (3),
(ii) the energy costs, if any, paid for the year by or on behalf of the individual or the individual's qualifying spouse or qualifying common-law partner in respect of a designated principal residence of the individual on a reserve in Ontario, if the individual is resident on a reserve in Ontario at any time in the year, and
(iii) 20 per cent of the amount, if any, paid by or on behalf of the individual or the individual's qualifying spouse or qualifying common-law partner for accommodation for the individual at any time in the year in a designated long-term care home,
"B" is the individual's property tax amount equal to the least of,
(a) $825,
(b) the individual's occupancy cost for the year, and
(c) the sum of,
(i) the lesser of $425 and the individual's occupancy cost for the year, and
(ii) an amount equal to 10 per cent of the individual's occupancy cost for the year,
"C" is,
(a) the greater of $25,000 and the individual's adjusted income for the year, if the individual did not have a qualifying spouse, qualifying common-law partner or qualified dependant on December 31, 2010, or
(b) the greater of $30,000 and the individual's adjusted income for the year, if the individual had a qualifying spouse, qualifying common-law partner or qualified dependant on December 31, 2010, and
"D" is,
(a) $25,000, if the individual did not have a qualifying spouse, qualifying common-law partner or qualified dependant on December 31, 2010, or
(b) $30,000, if the individual had a qualifying spouse, qualifying common-law partner or qualified dependant on December 31, 2010.
Reduction in amount of Ontario energy and property tax credit
(6) If an individual receives a grant under section 104.1 for the taxation year, the amount determined in respect of the senior for the year in subsection (5) is reduced by the amount, if any, by which the sum of "E" and "F" exceeds "G" where,
"E" is the amount, if any, by which the amount determined in respect of the individual under subsection (5) before the application of this subsection exceeds the individual's energy amount determined as "A" in subsection (5),
"F" is the amount of the grant under section 104.1 which the individual received for the year, and
"G" is the amount of the individual's occupancy cost for the year as determined for the purposes of this Division.
Receipt of grant under section 104.1
(7) If an individual has a qualifying spouse or qualifying common-law partner on December 31, 2010 and receives a grant under section 104.1 for the taxation year, the individual and not the individual's qualifying spouse or qualifying common-law partner may claim an amount under this section for the taxation year.
(4) Section 101.2 of the Act is amended by adding the following subsection:
Receipt of a transitional Northern Ontario energy credit under Part V.7
(8) If an individual has a qualified relation on December 31, 2010 and receives a credit under Part V.7 for the taxation year, the individual and not the individual's qualified relation may claim an amount under this section for the taxation year.
7. (1) Section 101.3 of the Act is amended by striking out "Ontario property tax credit" and substituting "Ontario energy and property tax credit",
(a) in the headnote;
(b) in the portion before paragraph 1;
(c) in subparagraph 1 i; and
(d) in subparagraph 1 ii.
(2) Paragraph 2 of section 101.3 of the Act is amended by striking out "an Ontario property tax credit" in the portion before subparagraph i and substituting "an Ontario energy and property tax credit".
8. Section 104.1 of the Act is amended by adding the following subsection:
Exception, who may apply and receive grant
(5.1) Despite subsection (5), if an eligible senior has a cohabiting spouse or common-law partner on December 31 in a taxation year ending after December 31, 2008 and claims or receives an Ontario energy and property tax credit under section 101.2 or Part V.8 for the taxation year or a Northern Ontario energy credit under Part V.6 for the taxation year, the eligible senior and not his or her cohabiting spouse or common-law partner may apply for and receive a grant under this section for the taxation year.
9. (1) The Act is amended by adding the following Part:
Part V.8
Ontario Energy and Property Tax Credit After 2010
Interpretation
Definitions
104.35 (1) In this Part,
"adjusted income" means, in respect of an individual for a base taxation year, the individual's adjusted income for the year as determined for the purposes of section 122.5 of the Federal Act; ("revenu rajusté")
"base taxation year", when used in relation to a specified month, means,
(a) if the specified month is July, September or December, the taxation year that ended on December 31 of the preceding taxation year, or
(b) if the specified month is March or June, the taxation year that ended on December 31 of the second preceding taxation year; ("année de base")
"designated long-term care home" means, in respect of an individual for a base taxation year, a designated principal residence of the individual that is a long-term care home in Ontario,
(a) that was exempt in whole or in part from municipal tax for the year, and
(b) for which no grant in lieu of municipal tax is payable by the owner under any statutory authority or, if payable, has not been paid; ("foyer de soins de longue durée désigné")
"designated principal residence" means, in respect of an individual for a base taxation year, a principal residence in Ontario of the individual, the individual's qualified relation or both of them that is designated by the individual as his or her principal residence for the base taxation year for the purposes of this Part in his or her return of income under this Act for the base taxation year; ("résidence principale désignée")
"eligible individual" means, for a specified month, a person who, at the beginning of the specified month,
(a) would be an eligible individual as defined in subsection 122.5 (1) of the Federal Act if the reference to "19 years" in clause (a) of that definition were read as "18 years", and
(b) is not a person described in paragraph 122.5 (2) (a), (b), (c), (d) or (e) of the Federal Act; ("particulier admissible")
"principal residence" means, in respect of an individual, premises, including a non-seasonal mobile home, that are occupied by the individual as the individual's primary place of residence; ("résidence principale")
"qualified dependant" means, in respect of an individual for a specified month, a person who, at the beginning of the specified month,
(a) would be a qualified dependant of the individual, as defined in subsection 122.5 (1) of the Federal Act, if the reference to "19 years" in clause (c) of that definition were read as "18 years", and
(b) is not a person described in paragraph 122.5 (2) (a), (b), (c), (d) or (e) of the Federal Act; ("personne à charge admissible")
"qualified relation" means, in respect of an individual for a specified month, a person who, at the beginning of the specified month,
(a) is a qualified relation of the individual, as defined in subsection 122.5 (1) of the Federal Act, and
(b) is not a person referred to in paragraph 122.5 (2) (a), (b), (c), (d) or (e) of the Federal Act; ("proche admissible")
"reserve" has the same meaning as in the Indian Act (Canada); ("réserve")
"return of income" has the meaning assigned by section 122.6 of the Federal Act; ("déclaration de revenu")
"senior" means, in respect of a specified month, a person who is at least 64 years old on the last day of the base taxation year; ("personne âgée")
"specified month" means,
(a) in respect of a base taxation year ending after December 31, 2009 and before January 1, 2011, any of July 2011, December 2011, March 2012 and June, 2012, or
(b) in respect of a base taxation year ending after December 31, 2010, any of September and December of the first calendar year starting after the end of the base taxation year and March and June of the second calendar year starting after the end of the base taxation year; ("mois déterminé")
"specified threshold" means, for a base taxation year, the sum of,
(a) the maximum amount for the year of a pension payable under the Old Age Security Act (Canada) to a person and his or her spouse or common-law partner, within the meaning of that Act, where each of them is a pensioner,
(b) the maximum amount for the year of a guaranteed income supplement payable under Part II of the Old Age Security Act (Canada) to a person and his or her spouse or common-law partner, within the meaning of that Act, where each of them is a pensioner, and
(c) the maximum amount for the year of a guaranteed annual income increment payable under the Ontario Guaranteed Annual Income Act to a person and his or her spouse or common-law partner, within the meaning of that Act, where each of them is a beneficiary. ("seuil déterminé")
Qualified relation
(2) For the purposes of this Part, an individual is,
(a) deemed to have a qualified relation for every specified month with respect to a base taxation year if the individual had a qualified relation on December 31 of the base taxation year; and
(b) deemed not to have a qualified relation for the specified months with respect to a base taxation year if the individual did not have a qualified relation on December 31 of the base taxation year.
Same
(3) For the purposes of this Part, an individual is deemed not to have a qualified relation on December 31 of a base taxation year if, on that day, the individual and the person who would otherwise have been his or her qualified relation have been living separately and apart because of medical necessity.
Base taxation year
(4) A reference in this Part to a base taxation year is a reference to the taxation year that is the base taxation year with respect to the specified month to which the reference relates.
Occupancy cost
(5) For the purposes of this Part, "occupancy cost" has the same meaning and is determined in the same manner as in Division D of Part IV and, in the application of section 98 for the purposes of this Part, references to a qualifying spouse or qualifying common-law partner are read as references to a qualified relation.
Specified threshold, rounding
(6) If the amount that would otherwise be the specified threshold for a base taxation year is not a whole dollar amount, the amount of the specified threshold shall be rounded up to the next whole dollar.
Ontario energy and property tax credit after 2010
104.36 (1) The Ontario Minister may pay an Ontario energy and property tax credit to an individual for a specified month after December 31, 2010 if the individual is deemed under this Part to have made an overpayment of tax under this Act for the specified month.
Notice
(2) If the Ontario Minister determines that an individual is entitled to an Ontario energy and property tax credit, the Ontario Minister shall send a notice to the individual setting out the amount of the payments to which the individual is entitled.
Deemed overpayment of tax
(3) An individual is deemed to have made an overpayment of tax under this Act for a specified month and is eligible to receive an Ontario energy and property tax credit in respect of the overpayment if all of the following conditions are satisfied:
1. On the last day of the base taxation year, the individual had a designated principal residence and was resident in Ontario.
2. At the beginning of the specified month, the individual is an eligible individual and is resident in Ontario.
3. The individual and, if required by the Ontario Minister, the person who is the individual's qualified relation have each filed a return of income for the base taxation year.
Application of Federal Act
(4) Paragraphs 122.5 (2) (a), (b), (c), (d) and (e) and subsections 122.5 (5), (6), (6.1) and (6.2) and 160.1 (1.1) of the Federal Act apply for the purposes of this Part in respect of an overpayment deemed to arise under subsection (1) as if a reference in any of those provisions to a provision of the Federal Act were a reference to the corresponding provision of this Part.
Amount of tax credit, individuals other than seniors
104.37 (1) Subject to section 104.39, the amount of an Ontario energy and property tax credit payable to an individual, other than a senior, for a specified month is the amount determined using the formula,
(A + B) – [0.02 × (C – D)]
4
in which,
"A" is the individual's energy amount equal to the lesser of,
(a) $200, and
(b) the sum of,
(i) the amount, if any, of the individual's occupancy cost for the base taxation year less any amount included under paragraph 5 of subsection 98 (2) or paragraph 5 of subsection 98 (3),
(ii) the energy costs, if any, paid for the base taxation year by or on behalf of the individual or the individual's qualified relation in respect of a designated principal residence of the individual on a reserve in Ontario, if the individual is resident on a reserve in Ontario at any time in the year, and
(iii) 20 per cent of the amount, if any, paid by or on behalf of the individual or the individual's qualified relation for accommodation for the individual at any time in the base taxation year in a designated long-term care home,
"B" is the individual's property tax amount equal to the least of,
(a) $700,
(b) the individual's occupancy cost for the base taxation year, and
(c) the sum of,
(i) the lesser of $50 and the individual's occupancy cost for the base taxation year, and
(ii) an amount equal to 10 per cent of the individual's occupancy cost for the base taxation year,
"C" is,
(a) the greater of $20,000 and the individual's adjusted income for the base taxation year, if the individual does not have a qualified relation or a qualified dependant at the end of the base taxation year, or
(b) the greater of $25,000 and the individual's adjusted income for the base taxation year, if the individual has a qualified relation, a qualified dependant or both at the end of the base taxation year, and
"D" is,
(a) $20,000, if the individual does not have a qualified relation or a qualified dependant at the end of the base taxation year, or
(b) $25,000, if the individual has a qualified relation, a qualified dependant or both at the end of the base taxation year.
Income threshold
(2) If the amount set out in clause (b) of the definition of "C" in subsection (1), or as calculated in accordance with section 23 for a base taxation year ending after December 31, 2010, is less than the specified threshold for that year, the amount referred to in clause (b) of the definition of "C" and in clause (b) of the definition of "D" in subsection (1) for the base taxation year is equal to the specified threshold for that base taxation year.
Receipt of a Northern Ontario energy credit under Part V.6
(3) If an individual has a qualified relation on December 31 of a base taxation year and receives a credit under Part V.6 for a specified month in respect of that base taxation year, the individual and not the individual's qualified relation may receive an amount payable under this Part for a specified month in respect of the base taxation year.
Amount of tax credit, seniors
104.38 (1) Subject to section 104.39, the amount of the Ontario energy and property tax credit payable to an individual who is a senior for a specified month is the amount determined using the formula,
(A + B) – [0.02 × (C – D)]
4
in which,
"A" is the individual's energy amount equal to the lesser of,
(a) $200, and
(b) the sum of,
(i) the amount, if any, of the individual's occupancy cost for the base taxation year less any amount included under paragraph 5 of subsection 98 (2) or paragraph 5 of subsection 98 (3),
(ii) the energy costs, if any, paid for the base taxation year by or on behalf of the individual or the individual's qualified relation in respect of a designated principal residence of the individual on a reserve in Ontario, if the individual is resident on a reserve in Ontario at any time in the year, and
(iii) 20 per cent of the amount, if any, paid by or on behalf of the individual or the individual's qualified relation for accommodation for the individual at any time in the base taxation year in a designated long-term care home,
"B" is the individual's property tax amount equal to the least of,
(a) $825,
(b) the individual's occupancy cost for the base taxation year, and
(c) the sum of,
(i) the lesser of $425 and the individual's occupancy cost for the base taxation year, and
(ii) an amount equal to 10 per cent of the individual's occupancy cost for the base taxation year,
"C" is,
(a) the greater of $25,000 and the individual's adjusted income for the base taxation year, if the individual does not have a qualified relation or a qualified dependant at the end of the base taxation year, or
(b) the greater of $30,000 and the individual's adjusted income for the base taxation year, if the individual has a qualified relation, a qualified dependant or both at the end of the base taxation year, and
"D" is,
(a) $25,000, if the individual does not have a qualified relation or a qualified dependant at the end of the base taxation year, or
(b) $30,000, if the individual has a qualified relation, a qualified dependant or both at the end of the base taxation year.
Income threshold
(2) If the amount set out in clause (a) or (b) of the definition of "C" in subsection (1), or as calculated in accordance with section 23 for a base taxation year ending after December 31, 2010, is less than the specified threshold for that year, the amount referred to in that clause and the corresponding amount in clause (a) or (b) of the definition of "D" in subsection (1) for the base taxation year are equal to the specified threshold for that base taxation year.
Reduction in amount of Ontario energy and property tax credit
(3) If an individual receives a grant under section 104.1 for a taxation year that is a base taxation year under this Part, the amount determined in respect of the senior for a specified month under subsection (1) is reduced by one-quarter of the amount, if any, by which the sum of "E" and "F" exceeds "G" where,
"E" is the amount, if any, by which four times the amount determined in respect of the individual under subsection (1) before the application of this subsection exceeds the individual's energy amount determined as "A" in subsection (1),
"F" is the amount of the grant under section 104.1 which the individual received for the base taxation year, and
"G" is the amount of the individual's occupancy cost for the base taxation year, as determined for the purposes of this Part.
Receipt of grant under section 104.1
(4) If an individual has a qualified relation on December 31 of a base taxation year and receives a grant under section 104.1 for that year, the individual and not the individual's qualified relation may receive an amount payable under this section for a specified month in respect of the base taxation year.
Receipt of a Northern Ontario energy credit under Part V.6
(5) If an individual has a qualified relation on December 31 of a base taxation year and receives a credit under Part V.6 for a specified month in respect of that base taxation year, the individual and not the individual's qualified relation may receive an amount payable under this Part for a specified month in respect of the base taxation year.
Rules relating to the tax credit
104.39 (1) The following rules apply in determining the amount, if any, of an individual's Ontario energy and property tax credit under this Part:
1. Subject to subsection 104.38 (4), if the individual has a qualified relation at the end of a base taxation year, only one of them may receive an Ontario energy and property tax credit for the specified months, with respect to the base taxation year, to which either or both of them would otherwise be entitled.
2. If the individual has a qualified relation at the end of a base taxation year but only one of them is a senior, only the senior may receive an Ontario energy and property tax credit for the specified months in respect of the base taxation year.
3. If two or more individuals inhabit the same principal residence in a base taxation year and each of them is entitled to receive an Ontario energy and property tax credit in respect of the residence for a specified month with respect to the base taxation year, the total occupancy cost relating to the residence is allocated to each of them according to the following:
i. The beneficial ownership of each of them in the principal residence, if the principal residence is not a non-seasonal mobile home and is not a residence occupied pursuant to a life lease or a lease having a term of 10 years or more.
ii. The portion of the rent for the principal residence that was paid by or on behalf of each of them in respect of the occupation of the residence in the year.
iii. In the case of a principal residence that is a non-seasonal mobile home owned and occupied by one or both of them, the amount paid for the year by or on behalf of each of them to the owner of the land on which the mobile home is located that can reasonably be considered to have been paid to compensate the owner for municipal tax assessed against the land for the year and the amount of municipal tax that was paid by or on behalf of each of them for the year in respect of the mobile home.
iv. In the case of a principal residence occupied pursuant to a life lease or a lease having a term of 10 years or more where the lease has been paid in full, the same percentage of the amount of municipal tax that is reasonably applicable to the residence for the taxation year as the percentage interest of each of them in the lease.
Small payments
(2) If the amount that is four times the amount determined under subsection 104.37 (1) or 104.38 (1) in respect of an individual for a specified month does not exceed $2, no amount is payable to the individual for the specified month.
Same
(3) If the amount determined under subsection 104.37 (1) or 104.38 (1) in respect of an individual for a specified month is greater than 50 cents but not greater than $10 and if it is reasonable to expect that the amount that would be determined in respect of the individual for each of the other specified months in respect of the same base taxation year would be greater than 50 cents but not greater than $10, the amount payable to the individual for the specified month is the greater of $10 and four times the amount determined under subsection 104.37 (1) or 104.38 (1), as applicable, and no amount is payable to the individual for any other specified month in respect of the same base taxation year.
Bankruptcy
(4) For the purposes of this Part, if an individual is bankrupt at any time in a calendar year,
(a) the individual is deemed to have only one base taxation year, beginning on January 1 and ending on December 31 of the calendar year; and
(b) the individual's adjusted income for the deemed base taxation year is deemed to be the total amount of the individual's adjusted income for that calendar year.
Effect of death
(5) Subsection (6) applies for the purposes of this Part if an individual (the "specified individual") dies after December 31 of a base taxation year and before a specified month and would have been, but for his or her death,
(a) an eligible individual at the beginning of the specified month who has a qualified relation or qualified dependant; or
(b) an individual who is a qualified relation or a qualified dependant in respect of an eligible individual at the beginning of the specified month.
Continuation of credit
(6) If this subsection applies in respect of a specified individual, the entitlement of the specified individual, or of an eligible individual in respect of whom the specified individual is a qualified relation or a qualified dependant, to an Ontario energy and property tax credit for a specified month under this Part shall be determined under this Part as if the specified individual had not died.
No interest payable
(7) No interest is payable on the amount of an Ontario energy and property tax credit paid by the Ontario Minister under this Part or repayable by an individual under this Part.
Amount not to be charged
(8) A credit under this Part or an entitlement to the payment of a credit under this Part, as the case may be,
(a) shall not be assigned, charged, attached or given as security; and
(b) shall not be garnished.
Exception, family orders
(9) Subsection (8) does not affect or restrict the garnishment or attachment of payments under this Part pursuant to the Family Orders and Agreements Enforcement Assistance Act (Canada).
Repayment
104.40 (1) If it is determined that an individual received an Ontario energy and property tax credit to which he or she is not entitled or received an amount greater than the amount to which he or she was entitled, the individual shall repay the amount or the excess amount, as the case may be, to the Ontario Minister.
Exception
(2) Subsection (1) does not apply if the total amount repayable in respect of a base taxation year is not more than $2.
Recovery of excess amounts
(3) An amount repayable under subsection (1) that has not been repaid to the Ontario Minister 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.
Special circumstances
(4) If owing to special circumstances it is deemed unreasonable to demand repayment of the whole amount repayable under subsection (1), the Ontario Minister may accept such amount as he or she considers proper.
Money appropriated by the Legislature
104.41 The money required for the purposes of this Part shall be paid out of the money appropriated for the purposes by the Legislature.
(2) Subsection 104.35 (1) of the Act, as enacted by subsection (1), is amended by adding the following definition:
"shared-custody parent", in respect of a qualified depen-dant at a particular time, means, where the presumption referred to in paragraph (f) of the definition of "eligible individual" in section 122.6 of the Federal Act does not apply in respect of the qualified dependant, an individual who is one of the two parents of the qualified dependant who,
(a) are not at that time cohabiting spouses or common-law partners of each other,
(b) reside with the qualified dependant on an equal or near equal basis, and
(c) primarily fulfil the responsibility for the care and upbringing of the qualified dependant when residing with the qualified dependant, as determined in consideration of prescribed factors; ("parent ayant la garde partagée")
(3) Section 104.37 of the Act, as enacted by subsection (1), is amended by adding the following subsection:
Exception, shared-custody parent
(4) Despite subsection (1), if an eligible individual, other than a senior, is a shared-custody parent in respect of a qualified dependant and does not have any other qualified dependants or a qualified relation at the end of a base taxation year, the amount of an Ontario energy and property tax credit payable to the individual for a specified month in respect of the base taxation year is the amount that would be determined under subsection (1) if the definitions of "C" and "D" in that subsection read as follows:
"C" is the amount determined by the formula,
in which,
"E" is the greater of $20,000 and the individual's adjusted income for the base taxation year, and
"F" is the greater of $25,000 and the individual's adjusted income for the base taxation year, and
"D" is $22,500.
(4) Section 104.38 of the Act, as enacted by subsection (1), is amended by adding the following subsection:
Exception, shared-custody parent
(2.1) Despite subsection (1), if an eligible individual who is a senior is a shared-custody parent in respect of a qualified dependant and does not have any other qualified dependants or a qualified relation at the end of a base taxation year, the amount of an Ontario energy and property tax credit payable to the individual for a specified month in respect of the base taxation year is the amount that would be determined under subsection (1) if the definitions of "C" and "D" in that subsection read as follows:
"C" is the amount determined by the formula,
in which,
"E" is the greater of $25,000 and the individual's adjusted income for the base taxation year, and
"F" is the greater of $30,000 and the individual's adjusted income for the base taxation year, and
"D" is $27,500.
10. Paragraph 1 of subsection 125 (2) of the Act is amended by striking out "and" at the end of subparagraph v and by adding the following subparagraphs:
vii. the amount of a Northern Ontario energy credit, if any, to which the taxpayer is entitled under Part V.6, and
viii. the amount of an Ontario energy and property tax credit, if any, to which the taxpayer is entitled under Part V.8.
11. (1) Subclause 144 (1) (b) (ii) of the Act is repealed and the following substituted:
(ii) attempting to obtain for the benefit of the person or another person an amount in excess of the amount, if any, to the which the person or other person is entitled in respect of,
(A) a tax credit under Part IV,
(B) an Ontario child benefit under section 104,
(C) a senior homeowners' property tax grant under section 104.1,
(D) an Ontario sales tax credit under section 104.11,
(E) an Ontario sales tax transition benefit under section 104.12,
(F) a Northern Ontario energy credit under Part V.6, or
(G) an Ontario energy and property tax credit under Part V.8, or
(2) Clause 144 (2) (a) of the Act is repealed and the following substituted:
(a) to a fine of not less than 50 per cent and not more than 200 per cent of the amount of,
(i) the tax that was sought to be evaded, or
(ii) the amount that was sought in excess of the amount, if any, to which the person or the other person is entitled in respect of a tax credit, benefit, grant, credit or refund referred to in subclause (1) (b) (ii) or (iii); or
Commencement
12. (1) Subject to subsection (2), this Act comes into force on the day it receives Royal Assent.
Same
(2) Subsections 9 (2) to (4) come into force on a day to be named by proclamation of the Lieutenant Governor.
Short title
13. The short title of this Act is the Enhancement of the Ontario Energy and Property Tax Credit for Seniors and Ontario Families Act, 2010.
EXPLANATORY NOTE
This Explanatory Note was written as a reader's aid to Bill 109 and does not form part of the law. Bill 109 has been enacted as Chapter 23 of the Statutes of Ontario, 2010.
The Taxation Act, 2007 is amended to implement the Ontario energy and property tax credit announced in the 2010 Ontario Budget. The Ontario energy and property tax credit will apply for the 2010 and subsequent taxation years and will have two components: a property tax amount and an energy amount. For 2010, the tax credit is claimed in income tax returns filed by qualified individuals for the year. Starting in 2011, the Ontario energy and property tax credit is calculated using income information from income tax returns filed for the previous year, but is payable directly to eligible individuals in four quarterly instalments during the second half of the year and the first half of the following year.
