I found two key changes for 2021 tax year while working at a tax clinic. One is Climate Action Incentive, and the other is Ontario Trillium Benefit.
Many people received around $300 refund last year for CAI- Climate Action Incentive. However, they might see less refund or no refund at all this year because CAI will be paid quarterly starting July rather than one lump sum payment at tax refund. The amount is still to be determined. We all have to wait. I guessed one reason might be how fast and unpredictably gas price has increased especially considering the Russian invasion of Ukraine and potential sanction at Russian oil and gas. There are so many moving parts.
The other change is the rent portion of the OTB – Ontario Trillium Benefit. CBC recently reported that Toronto Community Housing tenants were blindsided by CRA’s demand to pay back benefits. Canada Revenue Agency (CRA) is asking tenants of some Toronto Community Housing Corporation (TCHC) owned buildings to pay back years of the Ontario Energy and Property Tax Credit (OEPTC), part of OTB. If the building is tax exempted, tenants of these buildings are not eligible to apply for the OEPTC (rent) portion of the OTB. The TCHC have recently published a list of buildings, indicating tax exempt status of each building. Because the CRA has started to collect monies back from some residents of these buildings, residents of the tax-exempted buildings are better off not to apply for the OTB. Otherwise, they will have to pay the money back later to CRA. This is indeed a very tough shock giving how high inflation is now. Those receiving benefits are on an even tighter budget.
God, the tax system is so complicated. We need universal basic income scheme that is simple and fair. And no claw back please!
Worthfy Financial Literacy Counselling 