[39] Bill 44 Royal Assent (PDF)
Bill 44 2010
An Act to implement the Northern Ontario energy credit
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. The Taxation Act, 2007 is amended by adding the following Part:
PART
V.6
NORTHERN ONTARIO ENERGY Credit
Interpretation
104.19 (1) In this Part,
"adjusted income" means, in respect of an individual for a taxation year, the individual's adjusted income for the year as determined for the purposes of subdivision a of Division E of Part I of the Federal Act; ("revenu rajusté")
"base taxation year", in respect of a specified month, has the meaning prescribed by the Minister of Finance; ("année de base")
"cohabiting spouse or common-law partner" has the meaning assigned by section 122.6 of the Federal Act; ("conjoint ou conjoint de fait visé")
"designated principal residence" means, in respect of an individual for a specified month, a principal residence of the individual, the individual's qualified relation or both of them that is designated by the individual as his or her principal residence in his or her return of income under this Act for the base taxation year in respect of the specified month; ("résidence principale désignée")
"determination date" means, in respect of a specified month, the day immediately before the specified month; ("date de détermination")
"eligible individual" means, at a particular time, an individual other than a trust who,
(a) is resident in Northern Ontario at that time, and
(b) is not an ineligible individual at that time; ("particulier admissible")
"excluded premises" means a student residence designated by the Ontario Minister and other such premises as may be prescribed by the Minister of Finance; ("locaux exclus")
"ineligible individual" means, at a particular time, a person who is a person who would be described in paragraphs 122.5 (2) (a), (b), (c) or (d) of the Federal Act if the reference to a specified month in any of those paragraphs were read as a reference to the particular time; ("particulier exclu")
"municipal tax" has the same meaning as in subsection 98 (1); ("impôts municipaux")
"Northern Ontario" means the geographic areas named and described in Schedule 2 to Ontario Regulation 180/03 (Division of Ontario into Geographic Areas) made under the Territorial Division Act, 2002 as Algoma, Cochrane, Kenora, Manitoulin, Nipissing, Parry Sound, Rainy River, Sudbury, Thunder Bay and Timiskaming; ("Nord de l'Ontario")
"principal residence" means, in respect of an individual for a specified month, premises other than excluded premises, including a non-seasonal mobile home, situated in Northern Ontario that are occupied by the individual, the individual's qualified relation, or both of them, as their primary place of residence in the base taxation year in respect of the specified month; ("résidence principale")
"qualified dependant" means, in respect of an individual for a specified month, a person who, on the determination date in respect of the specified month,
(a) is the individual's child or is dependent for support on the individual or on the individual's cohabiting spouse or common-law partner,
(b) resides with the individual,
(c) is under the age of 18 years,
(d) is not an ineligible individual,
(e) is not a qualified relation of any individual,
(f) is not a person in respect of whom a special allowance under the Children's Special Allowances Act (Canada) is payable for the specified month, and
(g) is not a parent who resides with their child; ("personne à charge admissible")
"qualified relation" means, in respect of an individual at a particular time, a person, if any, who is the individual's cohabiting spouse or common-law partner and who is not an ineligible individual at that time; ("proche admissible")
"return of income" has the meaning assigned by section 122.6 of the Federal Act; ("déclaration de revenu")
"specified month" means, in respect of a base taxation year, a month prescribed by the Minister of Finance. ("mois déterminé")
Residence re qualified dependant
(2) If an individual can reasonably be considered to reside at a particular time with two parents who live separate and apart, the individual is deemed for the purposes of clause (b) of the definition of "qualified dependant" in subsection (1) to reside at the particular time with,
(a) the parent who is registered as the recipient of an amount under section 122.61 of the Federal Act and has care and custody of the qualified dependant for the month that includes the particular time; or
(b) if neither parent is registered as the recipient of an amount under section 122.61 of the Federal Act for the month that includes the particular time, the parent who claims an amount under paragraph 118 (1) (b.1) of the Federal Act in respect of the qualified dependant for the taxation year immediately preceding the taxation year that includes that month and has care and custody of the qualified dependant for that month.
Change in status re qualified dependant
(3) If a qualified dependant of an individual attains the age of 18 or becomes a parent who resides with their child after December 31 of a base taxation year in respect of a specified month, the individual shall continue to receive the credit as calculated under paragraph 2 of subsection 104.22 (2) for the specified month as though the qualified dependant had not attained the age of 18 or became a parent who resides with their child.
Exception re qualified relation
(4) If two individuals are qualified relations in respect of each other but are living separate and apart on the determination date in respect of a specified month because of medical necessity, they are deemed for the purposes of this Part not to be qualified relations in respect of each other.
Northern Ontario energy credit
104.20 The Ontario Minister may pay a Northern Ontario energy credit to an individual for a specified month after June 2011 if the individual is deemed under this Part to have made an overpayment of tax under this Act for the specified month and if the requirements of this Part are satisfied.
Eligibility for the credit
104.21 (1) An individual is deemed to have made an overpayment of tax under this Act for a specified month in respect of a base taxation year and is eligible to receive a Northern Ontario energy credit in respect of the overpayment if all of the following conditions are satisfied:
1. The individual is an eligible individual on the determination date in respect of the specified month.
2. The individual files a return of income under this Act for the base taxation year or provides the Ontario Minister with the information requested by the Minister regarding the individual's income for the base taxation year.
3. The individual,
i. paid municipal tax, rent or other amounts in respect of a designated principal residence of the individual for the base taxation year, or whose qualified relation paid municipal tax, rent or other amounts in respect of a designated principal residence of the individual for the base taxation year that would be included in computing the individual's occupancy cost for the purposes of section 98 of this Act,
ii. paid taxes, charges or rates, as may be prescribed by the Minister of Finance, in respect of a designated principal residence of the individual for the base taxation year, or whose qualified relation paid such amounts in respect of a designated principal residence of the individual for the base taxation year, or
iii. paid an amount in respect of the supply of electricity or other source of energy to the individual's designated principal residence for the base taxation year, or whose qualified relation paid such amounts in respect of a designated principal residence of the individual for the base taxation year, if the residence is situated on a reserve in Northern Ontario.
4. The Ontario Minister has not paid a Northern Ontario energy credit to a person who is the individual's qualified relation on the determination date.
If individual and qualified relation would both qualify
(2) If an individual is a qualified relation of another individual, in relation to a specified month, only one of them is an eligible individual in relation to the specified month and if both of them claim to be eligible individuals, the individual that the Ontario Minister designates is the eligible individual in relation to that specified month.
Amount and payment of credit
104.22 (1) An individual who is deemed under section 104.21 to have made an overpayment of tax under this Act for a specified month is entitled to be paid an instalment of the Northern Ontario energy credit for the specified month if, on the determination date in respect of the specified month, he or she is an eligible individual.
Amount of payment
(2) The amount of the instalment payable to an individual for a specified month in respect of a base taxation year is the amount determined under paragraph 1 or 2, as applicable:
1. If the individual is 18 years of age or more and does not have a qualified relation or a qualified dependant on the determination date in respect of the specified month, the amount of the instalment is the amount calculated using the formula,
in which "A" is the amount, if any, by which the individual's adjusted income for the base taxation year exceeds $35,000.
2. If the individual has a qualified dependant or a qualified relation, or both, on the determination date in respect of the specified month, the amount of the instalment is the amount calculated using the formula,
in which "B" is the amount, if any, by which the individual's adjusted income for the base taxation year exceeds $45,000.
Small payments
(3) If the amount that is four times the amount of the instalment as determined under subsection (2) 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
(4) If the amount of the instalment as determined under subsection (2) in respect of an individual for a specified month in respect of a base taxation year 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 other specified month in respect of the base taxation year is greater than 50 cents but not greater than $10, the amount of the instalment payable to the individual for the specified month is the greater of $10 and four times the amount determined under subsection (2) and no further instalments are payable to the individual for any other specified month in respect of the base taxation year.
Bankruptcy
(5) For the purposes of subsection (2), if an individual is bankrupt at any time in a base taxation year,
(a) the individual is deemed to have only one taxation year in the base taxation year beginning on January 1 and ending on December 31; and
(b) the individual's income for the base taxation year is deemed to be the total amount of the individual's income for that year.
Miscellaneous rules
No interest payable
104.23 (1) No interest is payable on the amount of a Northern Ontario energy credit paid by the Ontario Minister under this Part or repayable by an individual under this Part.
Repayment
(2) If it is determined that an individual received payment of an instalment of a Northern Ontario energy credit 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 Ontario Minister.
Exception
(3) Subsection (2) does not apply if the amount that is repayable is not more than $2.
Recovery of excess amounts
(4) An amount repayable under subsection (2) 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
(5) If owing to special circumstances it is deemed unreasonable to demand repayment of the whole amount repayable under subsection (2), the Ontario Minister may accept such amount as he or she considers proper.
Credit not assignable
(6) Subsection 122.61 (4) of the Federal Act applies for the purposes of this Part.
Money appropriated by the Legislature
104.24 The money required for the purposes of this Part shall be paid out of the money appropriated for the purposes by the Legislature.
2. The Act is amended by adding the following Part:
PART
V.7
transitional NORTHERN ONTARIO ENERGY credit for 2010
Interpretation
104.25 (1) Expressions used in this Part have the same meaning as in Part V.6 except where otherwise indicated.
Definitions
(2) In this Part,
"designated principal residence" means, in respect of an individual, a principal residence of the individual, the individual's qualifying relation or both of them, that is designated by the individual in his or her application under section 104.29; ("résidence principale désignée")
"determination date" means, in respect of a payment month, the 15th day of the payment month; ("date de détermination")
"ineligible individual" means, at a particular time, a person who,
(a) has died before the particular time,
(b) is confined to a prison or similar institution for a period of at least 90 days that includes the particular time,
(c) is at the particular time a non-resident person other than a non-resident person who,
(i) is at that time the cohabiting spouse or common-law partner of a person who is deemed under subsection 250 (1) of the Federal Act to be resident in Canada throughout the taxation year that includes the particular time, and
(ii) was resident in Canada at any time before the particular time, or
(d) is at the particular time a person described in paragraph 149 (1) (a) or (b) of the Federal Act; ("particulier exclu")
"payment month" means November 2010 or February 2011; ("mois de paiement")
"principal residence" means, in respect of an individual for a payment month, premises other than excluded premises, including a non-seasonal mobile home, situated in Northern Ontario that are occupied by the individual, the individual's qualified relation, or both of them, as their primary place of residence on December 31, 2009; ("résidence principale")
"qualified dependant" means, in respect of an individual at a particular time, a person who at the particular time,
(a) is the individual's child or is dependent for support on the individual or on the individual's cohabiting spouse or common-law partner,
(b) resides with the individual,
(c) is under the age of 18 years,
(d) is not an ineligible individual,
(e) is not a qualified relation of any individual,
(f) is not a person in respect of whom a special allowance under the Children's Special Allowances Act (Canada) is payable for the payment month that includes the particular time, and
(g) is not a parent who resides with their child; ("personne à charge admissible")
"qualified relation" means, in respect of an individual at a particular time, a person, if any, who is the individual's cohabiting spouse or common-law partner and who is not an ineligible individual at the time. ("proche admissible")
Residence re qualified dependant
(3) If an individual can reasonably be considered to reside at a particular time with two parents who live separate and apart, the individual is deemed for the purposes of clause (b) of the definition of "qualified dependant" in subsection (2) to reside at the particular time with,
(a) the parent who is registered as the recipient of an amount under section 122.61 of the Federal Act and has care and custody of the individual for the month that includes the particular time; or
(b) if neither parent is registered as the recipient of an amount under section 122.61 of the Federal Act for the month that includes the particular time, the parent who claims an amount under paragraph 118 (1) (b.1) of the Federal Act in respect of the individual for the taxation year immediately preceding the taxation year that includes that month and has care and custody of the individual for that month.
Exception re qualified relation
(4) If two individuals are qualified relations in respect of each other at a particular time but are living separate and apart at the particular time because of medical necessity, they are deemed for the purposes of this Part not to be qualified relations in respect of each other.
Transitional Northern Ontario energy credit
104.26 The Minister of Revenue may pay a transitional Northern Ontario energy credit to an individual in respect of the 2010 taxation year if the individual is deemed under this Part to have made an overpayment of tax under this Act for the 2010 taxation year and if the requirements of this Part are satisfied.
Eligibility for transitional energy credit
104.27 (1) An individual is deemed to have made an overpayment of tax under this Act for the 2010 taxation year and is eligible to receive a transitional energy credit for a payment month in respect of the overpayment if all of the following conditions are satisfied:
1. The individual was an eligible individual on the determination date in respect of the payment month.
2. The individual has filed a return of income under this Act in respect of his or her 2009 taxation year or provides the Minister of Revenue with the information requested by the Minister regarding the individual's income for the 2009 taxation year.
3. The individual applies to the Minister of Revenue for a transitional energy credit in accordance with section 104.29.
4. The individual,
i. paid municipal tax, rent or other amounts in respect of a designated principal residence of the individual for 2009, or whose qualified relation paid municipal tax, rent or other amounts in respect of a designated principal residence of the individual for 2009 that would be included in computing an individual's occupancy cost for the purposes of section 98 of this Act,
ii. paid taxes, charges or rates as may be prescribed by the Minister of Finance, in respect of a designated principal residence of the individual for 2009, or whose qualified relation paid such amounts in respect of a designated principal residence of the individual for 2009, or
iii. paid an amount in respect of the supply of electricity or other source of energy to the individual's designated principal residence, or whose qualified relation paid such amounts in respect of a designated principal residence of the individual, if the residence is situated on a reserve in Northern Ontario on December 31, 2009.
5. The Minister of Revenue has not paid a transitional energy credit to a person who was the individual's qualified relation on the determination date in respect of the payment month.
Effect of death
(2) Subsection (3) applies for the purposes of this Part if an individual (the "specified individual") dies after December 31, 2009 and before a determination date in respect of a payment month and would have been, but for his or her death,
(a) an eligible individual on the determination date in respect of a payment 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 on the determination date in respect of a payment month.
Continuation of credit
(3) 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 a transitional energy credit for a payment month under this Part shall be determined under this Part as if the specified individual did not die.
Amount of the transitional energy credit
104.28 (1) The transitional energy credit in respect of the 2010 taxation year is payable in two instalments.
Entitlement to instalments
(2) An individual who is deemed under section 104.27 to have made an overpayment of tax under this Act for the 2010 taxation year is entitled to be paid an instalment of the transitional energy credit for a payment month if, on the determination date in respect of the payment month, he or she is an eligible individual.
Amount of instalments
(3) The following is the amount of each of the two instalments of the transitional energy credit:
1. If the individual is 18 years of age or more and does not have a qualified relation or a qualified dependant on the determination date in respect of the payment month, the amount of each instalment is calculated using the formula,
in which "A" is the amount, if any, by which the individual's adjusted income for 2009 exceeds $35,000.
2. If the individual has a qualified relation or a qualified dependant on the determination date in respect of the payment month, the amount of each instalment is calculated using the formula,
in which "B" is the amount, if any, by which the individual's adjusted income for 2009 exceeds $45,000.
Small payments
(4) If the amount that is twice the amount of an instalment in respect of an individual does not exceed $2, no amount is payable to the individual in respect of the instalment.
Same
(5) If the amount determined under subsection (3) in respect of an individual for the first payment month is greater than $1 but not greater than $10 and it is reasonable to expect that the amount that would be determined in respect of the individual under subsection (3) for the second payment month will be greater than $1 but not greater than $10, the total amount that the Minister of Revenue shall pay to the individual is the greater of $10 and twice the amount determined under subsection (3), and the amount shall be paid to the individual in one instalment.
Bankruptcy
(6) For the purposes of subsection (3), if an individual is bankrupt at any time in 2009,
(a) the individual is deemed to have only one taxation year in 2009 beginning on January 1 and ending on December 31; and
(b) the individual's income for 2009 is deemed to be the total amount of the individual's income for that year.
Application for transitional energy credit
104.29 (1) An individual shall apply for a transitional energy credit no later than June 30, 2011 in the form approved by the Minister of Revenue.
Two qualified relations, one application
(2) If an individual and his or her qualified relation are each eligible to receive a transitional energy credit under this Part, only one of them may apply for the credit and, if both of them apply, the Minister of Revenue may designate the individual who is entitled to receive the credit.
Request for further information
(3) At any time after an individual has made an application, the Minister of Revenue may request that the individual provide any information that the Minister considers necessary for the purposes of section 104.30.
Compliance
(4) The individual shall comply with the request within the period specified by the Minister of Revenue.
Determination of entitlement and payments
104.30 (1) Upon receiving an application for a transitional energy credit, the Minister of Revenue shall review the application and,
(a) determine the amount of the instalment or instalments payable to the individual under this Part; or
(b) determine that the individual is not eligible for the transitional energy credit or is not entitled to payment of an instalment.
Notice and payment
(2) If the Minister of Revenue determines that an individual is entitled to be paid an instalment of the transitional energy credit, the 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 pay the instalment.
Determination by Minister final
(3) The Minister's determinations under subsection (1) are final and are not subject to review.
If no credit is payable
(4) If the Minister of Revenue determines that the individual is not eligible for the transitional energy credit or is not entitled to payment of an instalment, the Minister shall notify the applicant of the basis upon which the determination was reached.
Time limit for payment
(5) Despite subsection (2), the Minister of Revenue shall not pay an instalment of a transitional energy credit under this Part after December 31, 2011 and no individual is entitled to receive a payment under this Part after that date unless the individual's entitlement to the payment arose by reason of an assessment or reassessment under this Act before January 1, 2013.
Miscellaneous rules
No set off
104.31 (1) No portion of a transitional energy credit shall be retained by the Minister of Revenue and applied to reduce any debt to the Crown in right of Ontario or in right of Canada.
No interest payable
(2) No interest is payable on the amount of a transitional energy credit paid by the Minister of Revenue under this Part or repayable by an individual under this Part.
Repayments
(3) If, based on any information that the Minister of Revenue receives from an individual under section 104.29 or from the Federal Minister under section 104.32, the Minister of Revenue determines that an individual received payment of an instalment of the transitional energy credit 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 Minister of Revenue.
Exception
(4) Subsection (3) does not apply if,
(a) the amount that is repayable is not more than $2; or
(b) the Minister of Revenue's determination referred to in subsection (3) results from an assessment or reassessment of the individual's 2009 return of income after December 31, 2012.
Recovery of excess amounts
(5) An amount repayable under subsection (3) that has not been repaid to the Minister of Revenue 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
(6) If owing to special circumstances it is deemed unreasonable to demand repayment of the whole amount under subsection (3), the Minister of Revenue may accept such amount as he or she considers appropriate.
Credit not assignable
(7) Subsection 122.61 (4) of the Federal Act applies for the purposes of this Part.
Arrangements for information
104.32 The Minister of Revenue may enter into arrangements with the Federal Minister in relation to the collection, use and disclosure of information to facilitate the implementation of this Part and the payment of a transitional energy credit to which an individual is entitled under this Part.
Money appropriated by the Legislature
104.33 The money required for the purposes of this Part shall be paid out of the money appropriated for the purposes by the Legislature.
Repeal
104.34 This Part is repealed on January 1, 2014.
Commencement
3. This Act comes into force on the day it receives Royal Assent.
Short title
4. The short title of this Act is the Lowering Energy Costs for Northern Ontarians Act, 2010.
EXPLANATORY NOTE
This Explanatory Note was written as a reader's aid to Bill 44 and does not form part of the law. Bill 44 has been enacted as Chapter 13 of the Statutes of Ontario, 2010.
The Bill amends the Taxation Act, 2007 to implement a 2010 Budget measure concerning a Northern Ontario energy credit.
The Northern Ontario energy credit is set out in a new Part V.6 of the Act. The area that comprises "Northern Ontario" is defined in subsection 104.19 (1) of the Act. Individuals are eligible to receive the credit if they have a principal residence in Northern Ontario and pay municipal tax, rent or certain other amounts in respect of that residence. Individuals are also eligible to receive the credit if they live on a reserve in Northern Ontario and pay for energy costs in respect of their principal residence. Certain other criteria are specified.
For 2011 and subsequent taxation years, the amount of the annual credit for eligible individuals who are at least 18 years old and who do not have a qualified relation or a qualified dependant is $130. This amount is reduced if the individual's adjusted income is greater than $35,000. The credit is eliminated if the individual's adjusted income is greater than $48,000.
For 2011 and subsequent taxation years, the amount of the annual credit for eligible individuals who have a qualified relation or a qualified dependant is $200. This amount is reduced if the individual's adjusted income is greater than $45,000. The credit is eliminated if the individual's adjusted income is greater than $65,000.
A transitional Northern Ontario energy credit for 2010 is set out in a new Part V.7 of the Act. Eligibility criteria for the transitional credit are set out in section 104.27 of the Act. The amount of the credit is set out in section 104.28, and the amount is reduced or eliminated if the individual's adjusted income exceeds the thresholds specified in that section. The amount and reduction of the transitional credit are the same as those for the annual credit available for 2011 and subsequent taxation years.
The Northern Ontario energy credit for the 2011 and subsequent taxation years is payable in quarterly instalments. The transitional credit for 2010 is payable in two instalments. An individual must be resident in Northern Ontario on the determination date for a particular instalment, and satisfy certain other administrative requirements, in order to be entitled to payment of the instalment.
