A recent decision by the Ontario Government to issue Ontario Trillium Benefit (OTB) Payments in instalments rather than one lump sum payment, has many early income tax filers across Lambton-Kent-Middlesex concerned. I want to make it clear, this decision was made by the province of Ontario, not the federal government or any of its agencies.

The OTB was announced by Ontario in its March 2011 budget. It’s intended to help people pay for energy costs and to provide relief for sales tax and property tax. Starting July 10, 2012, the payment of these three refundable tax credits will be combined and delivered on a monthly basis. This is the first time that tax refunds will not include either a sales tax credit or property tax credit as a component of the income tax refund. Many people are only discovering this as they file their income tax returns and some are upset they’ll have to wait until July for their payments. Some have suggested individuals are now receiving their income tax returns in monthly instalments and this is not the case. It is only the OTB that is affected and only recipients of that benefit will notice the change.

I would like to point out again, this decision was made by the Ontario Government. While the Canada Revenue Agency (CRA) is responsible for administering the OTB on behalf of the province, it was not a decision that was made by the CRA or the federal government.

If you have any questions, contact the office of the Ontario Minister of Finance, Dwight Duncan.