Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Principal Issues: What amount should be entered in box 61210 on Form ON-BEN?
Position: For the electricity component of the home energy costs, an individual should enter the total amounts paid to the supplier, as per their electricity bills, in box 61210 on Form ON-BEN.
Reasons: Eligibility rules in Taxation Act.
XXXXXXXXXX 2020-083633
C. Underhill
June 9, 2022
Dear XXXXXXXXXX:
Re: Ontario Energy and Property Tax Credit
We are writing in response to your correspondence dated January 13, 2020, regarding the Ontario Trillium Benefit (OTB). You have asked for clarification concerning the amount of home energy costs that should be entered in box 61210 on Form ON-BEN 2019, Application for the 2020 Ontario Trillium Benefit and Ontario Senior Homeowners’ Property Tax Grant (ON-BEN). We apologize for the delay in our response.
You indicated that an individual may be eligible for the Ontario Electricity Support Program (OESP) and/or the First Nations On-Reserve Delivery credit (First Nations Delivery Credit) in the taxation year. You are not sure if the amounts received under either of these programs impacts the calculation of the individual’s Ontario Energy and Property Tax Credit (OEPTC) for the purposes of the OTB.
Our comments:
This technical interpretation provides general comments about the provisions of the Ontario Taxation Act, 2007 (“TA”) and related legislation (where referenced). It does not confirm the income tax treatment of a particular situation involving a specific taxpayer but is intended to assist you in making that determination. The income tax treatment of particular transactions proposed by a specific taxpayer will only be confirmed by this Directorate in the context of an advance income tax ruling request submitted in the manner set out in Information Circular IC 70-6R12, Advance Income Tax Rulings and Technical Interpretations.
Subsection 103.2(1) of the TA states that, for July 2012 and subsequent months, an individual is eligible to be paid an OTB for a month if he or she is resident in Ontario at the beginning of the month. The amount of an individual’s OTB for a month is the sum of his or her Ontario sales tax credit, OEPTC, and Northern Ontario energy credit for the month. You are asking about the OEPTC portion of the OTB.
The OEPTC is determined by sections 103.9 to 103.11, and 103.13 of the TA. The Canada Revenue Agency (CRA) administers the OTB on behalf of the province of Ontario. The CRA website that discusses the OTB states:
“The OEPTC has two components: an energy component and a property tax component. You should apply for the OEPTC if you are eligible for either component. You may be eligible if you lived in Ontario on December 31, 2021, and at least one of the following applies:
- rent or property tax for your principal residence in Ontario was paid by or for you for 2021;
- accommodation costs for living in a public or non-profit long-term care home in Ontario were paid by or for you for 2021;
- home energy costs (for example, electricity, heat) for your principal residence on a reserve in Ontario were paid by or for you for 2021; or
- you lived in a designated university, college, or private school residence in Ontario in 2021.”
You can find the website online by going to Canada.ca and typing “Province of Ontario” into the search toolbar. The eligibility rules for the OEPTC for the 2020 and prior years are similar to the rules noted above.
An individual is required to complete Form ON-BEN, so that the CRA can compute the amount of the monthly OTB, if any, an individual is entitled to receive. Box 61210, under Part A of the Form ON-BEN requires the individual to enter the amount of home energy costs paid for their principal residence on a reserve in Ontario. Home energy costs include amounts paid for electricity, natural gas, oil, and wood for a principal residence on a reserve in Ontario.
Where an individual is eligible to receive the OESP and/or the First Nations Delivery Credit, it is our understanding that a monthly credit for these programs is applied on the customer’s electricity bill. Therefore, for the electricity component of the home energy costs, an individual should enter the total amounts paid to the supplier, as per their electricity bills, in box 61210 on Form ON-BEN.
For more information about these programs go to hydroone.com and under the heading, Residential services select Financial assistance or go to oeb.ca and type Bill assistance programs in the search tool bar.
We trust that these comments will be of assistance to you.
Yours truly,
Lita Krantz, CPA, CA
Manager, Tax Credits and Ministerial Issues
Business and Employment Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch
UNCLASSIFIED
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