8.5 (1) In this section, “adjusted earned income” of an individual for a base taxation year is the total of the earned income for the base taxation year of the individual and of the person who is the individual’s cohabiting spouse or common-law partner for the purposes of subdivision a.1 of Division E of Part I of the Federal Act; (“revenu gagné modifié”) “adjusted income” means, in respect of an individual for a base taxation year, the amount that is his or her adjusted income for the year for the purposes of subdivision a.1 of Division E of the Federal Act; (“revenu modifié”) “base taxation year”, in relation to a month, has the meaning given to that expression by section 122.6 of the Federal Act; (“année de base”) “benefit year” means the period from July 1 of a year to June 30 of the following year; (“année du calcul des prestations”) “Canada Child Tax Benefit” means the Canada Child Tax Benefit under subdivision a.1 of Division E of Part I of the Federal Act; (“prestation fiscale canadienne pour enfants”) “child care expense” means a child care expense as defined in subsection 63 (3) of the Federal Act for which a receipt described in subsection 63 (1) of that Act is issued; (“frais de garde d’enfants”) “child care services” means the following services: 1. The provision of licensed child care under the Child Care and Early Years Act, 2014. 2. The provision of funding to participants in employment assistance activities under the Ontario Works Act, 1997, for the purpose described in paragraph 7 of subsection 66.1 (2) of Regulation 262 of the Revised Regulations of Ontario, 1990 (General) made under the Day Nurseries Act, as it read immediately before the repeal of the Day Nurseries Act
came into force; (“services de garde d’enfants”) “child care subsidy” means financial assistance that meets the requirements described in subsection (2); (“subvention pour frais de garde d’enfants”) “cohabiting spouse or common-law partner” means, in respect of an individual at any time, the person who, at that time, is the individual’s cohabiting spouse or common-law partner for the purposes of subdivision a.1 of Division E of Part I of the Federal Act; (“conjoint visé”) “designated percentage” means, in respect of an individual for a month, (a) if the individual has no qualified dependants at the beginning of the month, nil, (b) if the individual has one qualified dependant at the beginning of the month, 20 per cent if the month ends before July 1, 1999 or 21 per cent if the month begins after June 30, 1999, (c) if the individual has two qualified dependants at the beginning of the month, 40 per cent if the month ends before July 1, 1999 or 42 per cent if the month begins after June 30, 1999, and (d) if the individual has three or more qualified dependants at the beginning of the month, 60 per cent if the month ends before July 1, 1999 or 63 per cent if the month begins after June 30, 1999; (“pourcentage désigné”) “earned income” has the meaning given to that expression by subsection 63 (3) of the Federal Act; (“revenu gagné”) “eligible individual” means, in respect of a qualified dependant at any time, the individual who, at that time, is an eligible individual in respect of the dependant for the purposes of subdivision a.1 of Division E of Part I of the Federal Act; (“particulier admissible”) “qualified dependant” means, with respect to a month, an individual born before July 1, 2009 who has not attained the age of seven years before the first day of the month and who is a qualified dependant for the purposes of subdivision a.1 of Division E of Part I of the Federal Act; (“personne à charge admissible”) “qualifying child care expenses” means, for a base taxation year in relation to a month, all child care expenses claimed by the individual or the individual’s cohabiting spouse or common-law partner that are deductible and allowed as a deduction for the base taxation year under section 63 of the Federal Act; (“frais de garde d’enfants admissibles”) “return of income”, filed by an individual for a taxation year, means the return of income filed by the individual for the taxation year for the purposes of subdivision a.1 of Division E of Part I of the Federal Act; (“déclaration de revenu”) “shared-custody parent” in respect of a qualified dependant, means a shared custody parent as defined in section 122.6 of the Federal Act; (“parent ayant la garde partagée”) “single parent” means an individual who has one or more qualified dependants in respect of whom the individual is an eligible individual and who does not have a cohabiting spouse or common-law partner. (“chef de famille monoparentale”) 1998, c. 34, s. 74; 1999, c. 9, s. 122 (1); 2000, c. 10, s. 16 (1); 2001, c. 23, s. 133 (1, 2); 2004, c. 16, s. 3; 2006, c. 33, Sched. N, s. 5 (1, 2); 2007, c. 7, Sched. 17, s. 3 (1); 2009, c. 18, Sched. 13, s. 1 (1); 2011, c. 9, Sched. 20, s. 1 (1); 2014, c. 11, Sched. 6, s. 5 (1). Child care subsidy (2) Financial assistance that meets the following requirements constitutes a child care subsidy for the purposes of the Act: 1. It is provided for the benefit of an eligible individual or his or her cohabiting spouse or common-law partner who is a person in need as defined in section 1 of Regulation 262 of the Revised Regulations of Ontario, 1990, made under the Day Nurseries Act. 2. It is provided to pay for the costs of child care services for a qualified dependant of the individual or his or her cohabiting spouse or common-law partner. 3. It is provided by, i. a service system manager under the Child Care and Early Years Act, 2014, or ii. the Ministry of Education. 1998, c. 34, s. 74; 2001, c. 23, s. 133 (3); 2004, c. 16, s. 3; 2006, c. 33, Sched. N, s. 5 (3); 2014, c. 11, Sched. 6, s. 5 (2). Eligible individual at the beginning of a month (3) An individual is an eligible individual in respect of a qualified dependant at the beginning of a particular month for the purposes of subsection (4) if, (a) the individual is an eligible individual in respect of the qualified dependant at the beginning of the month; (b) the individual has filed with the Minister no later than 11 months after the end of the month the notice referred to in subsection 122.62 (1) of the Federal Act; and (c) the individual receives a Canada Child Tax Benefit in respect of the qualified dependant for the month.  1998, c. 34, s. 74; 2004, c. 16, s. 3. Deemed overpayment (4) An overpayment on account of an individual’s liability for tax under this Act for a taxation year shall be deemed to arise during a month after June 1998 if, (a) the individual is an eligible individual at the beginning of the month in respect of one or more qualified dependants; (b) the individual is resident in Ontario on the first day of the month and on the last day of the immediately preceding month; (c) an application for the supplement for the benefit year, or other period ending on June 30 that includes the month, containing the information and signed by the persons required by the Provincial Minister under subsection (8), is completed and filed not more than 18 months after the end of the month by the individual; and (d) the individual and, if required by the Provincial Minister, the person who is the individual’s cohabiting spouse or common-law partner for the purposes of subdivision a.1 of Division E of Part I of the Federal Act, if the individual has such a cohabiting spouse or common-law partner, have each filed a return of income for the base taxation year in relation to the month.  1998, c. 34, s. 74; 2001, c. 23, s. 133 (4); 2004, c. 16, s. 3. Amount of deemed overpayment (5) The overpayment of tax, if any, referred to in subsection (4) that is deemed to arise during a month on account of an individual’s liability under this Act for a taxation year in respect of a qualified dependant is equal to the amount determined in accordance with the formula, (A – B) / (12 × C) – D in which, “A” is the amount that is the lesser of “X” and “Y”, as defined in subsection (5.1), “B” is 8 per cent of the amount, if any, by which the individual’s adjusted income for the base taxation year in relation to the month exceeds $20,000, “C” is the number of qualified dependants in respect of whom the individual is an eligible individual at the beginning of the month, and “D” is, (a) if the month commences before July 1, 2008, nil, or (b) if the month commences after June 30, 2008, the lesser of, (i) the amount to which the individual is entitled for the month under section 8.6.2 of this Act or under section 104 of the Taxation Act, 2007, as the case may be, divided by the number of qualified dependants as defined in subsection 8.6.2 (1) of this Act or subsection 104 (1) of the Taxation Act, 2007, as the case may be, in respect of whom the individual is an eligible individual at the beginning of the month, and (ii) the amount that would otherwise be determined for the month under this subsection if “D” were nil for the month. 2007, c. 7, Sched. 17, s. 3 (2); 2009, c. 18, Sched. 13, s. 1 (2); 2011, c. 9, Sched. 20, s. 1 (2). Same (5.1) For the purposes of subsection (5), “X” is the amount equal to the greater of, (a) the amount determined by multiplying the individual’s designated percentage for the month by the amount by which the individual’s adjusted earned income for the base taxation year in relation to the month exceeds $5,000, and (b) 50 per cent of the individual’s qualifying child care expenses for the base taxation year in relation to the month for persons who are qualified dependants of the individual for the purposes of subdivision a.1 of Division E of Part I of the Federal Act; and “Y” is the amount obtained by multiplying the number of qualified dependants in respect of whom the individual was an eligible individual at the beginning of the month by, (a) $1,020 if the month ends before July 1, 1999, (b) $1,100 if the individual, (i) is not a single parent at the beginning of the month and the month begins after June 30, 1999, or (ii) is a single parent at the beginning of the month and the month begins after June 30, 1999 and ends before July 1, 2000, or (c) $1,310 if the individual is a single parent at the beginning of the month and the month begins after June 30, 2000.  2000, c. 10, s. 16 (3); 2004, c. 16, s. 3. Special payment, 2001 (5.2) The overpayment on account of an individual’s liability for tax under this Act for the 2001 taxation year in respect of a qualified dependant shall be deemed for the purposes of this section to include $100 in addition to the amount otherwise determined for the year under subsection (5), if the overpayment of tax determined under that subsection during the month ending on November 30, 2001 on account of the individual’s liability for tax under this Act in respect of the qualified dependant exceeds zero.  2001, c. 23, s. 133 (5); 2004, c. 16, s. 3. If in receipt of subsidy (6) Despite subsection (5), if the individual or his or her cohabiting spouse or common-law partner receives the benefit of a child care subsidy in respect of a qualified dependant in a particular month of the benefit year, the overpayment of tax that is deemed to arise during the month in respect of the qualified dependant shall be deemed to be the amount equal to the lesser of, (a) the amount of the overpayment that would otherwise be deemed to arise for the month under subsection (5) in respect of the qualified dependant; and (b) the amount equal to half of the total child care expenses paid for the month by the individual or his or her cohabiting spouse or common-law partner in respect of the qualified dependant.  1998, c. 34, s. 74; 2001, c. 23, s. 133 (6); 2004, c. 16, s. 3. Same, shared-custody parents (6.1) Despite subsections (5) and (6), if an eligible individual is a shared-custody parent in respect of one or more qualified dependants for a month after June 2011, the amount of the overpayment of tax that is deemed to arise during the month on account of the individual’s liability under this Act is equal to the amount determined by the formula, (E + F)/2 where, “E” is the total of all amounts determined for the month in respect of the individual under subsection (5) or (6), as the case may be, calculated without reference to this subsection, and “F” is the total of all amounts determined for the month in respect of the individual under subsection (5) or (6), as the case may be, calculated without reference to this subsection and calculated as if the individual were not an eligible individual in respect of any qualified dependants in respect of whom the individual is a shared-custody parent. 2011, c. 9, Sched. 20, s. 1 (3). Minimum deemed overpayment (7) Despite subsections (5), (6) and (6.1), if the overpayment that is deemed to arise under this section for a benefit year in respect of an individual is greater than zero but less than $10, the individual’s total overpayment for the benefit year is deemed to be $10.  1998, c. 34, s. 74; 2004, c. 16, s. 3; 2011, c. 9, Sched. 20, s. 1 (4). Application for supplement (8) For the purposes of determining the amount of an overpayment, if any, that is deemed to arise under this section, an application in respect of each benefit year, or other period ending on June 30 to which the application relates, shall be filed with the Provincial Minister in the manner and form approved by the Provincial Minister, containing the information and signed by the persons required by the Provincial Minister.  1998, c. 34, s. 74; 2004, c. 16, s. 3. Consideration of application (9) On receiving an application under this section, the Provincial Minister shall consider the application and, (a) determine the total amount, if any, of the overpayment that is deemed to arise under this section during each month in the benefit year, or during each month in the period to which the application relates; or (b) determine that no overpayment is deemed to arise under this section for the benefit year or for the period to which the application relates.  1998, c. 34, s. 74; 2004, c. 16, s. 3. Notice of entitlement (10) After making a determination under subsection (9), the Provincial Minister shall send to the individual a notice of entitlement setting out whether an overpayment is deemed to arise under this section in respect of the individual, the amount of any overpayment to which the individual is entitled and the basis on which the Provincial Minister’s determination is made, and shall notify the individual of his or her right to object to the notice of entitlement.  1998, c. 34, s. 74; 2004, c. 16, s. 3. Payment of supplement (11) Subject to subsections (11.1), (12), (13) and (18), the Provincial Minister shall pay to an eligible individual the total amount of any overpayment to which the eligible individual is entitled for a benefit year under this section by means of monthly payments.  1998, c. 34, s. 74; 2001, c. 23, s. 133 (7); 2004, c. 16, s. 3. Payment of additional amount for 2001 (11.1) The Provincial Minister may pay to an eligible individual the total of all additional amounts to which the individual is entitled under subsection (5.2) in respect of qualified dependants by means of one lump sum payment, separate from and in addition to any other payments under this section.  2001, c. 23, s. 133 (8); 2004, c. 16, s. 3. Exception for 1998 (12) Payment of an overpayment that is deemed to arise during any month before 1999 may be made after November 1998.  1998, c. 34, s. 74; 2004, c. 16, s. 3. Lump sum annual payment (13) The Provincial Minister may pay the total amount of any overpayment to which an eligible individual is entitled for a benefit year under this section by means of one lump sum payment if, (a) the total amount of the overpayment for the benefit year is not more than $10 or is deemed under this section to be $10; or (b) the overpayment during each month of the benefit year is less than $10.  1998, c. 34, s. 74; 2004, c. 16, s. 3. Notification of change (14) Every eligible individual shall notify the Provincial Minister in a form and manner satisfactory to the Provincial Minister of the occurrence of any of the following events, and shall provide the following information as part of the notification: 1. The event: the individual or his or her cohabiting spouse or common-law partner begins to receive the benefit of a child care subsidy. The information: for the first month in which he or she receives the benefit, the amount of the child care expenses paid by him or her for the care of the qualified dependant in respect of whom the subsidy is received. 2. The event: the individual or his or her cohabiting spouse or common-law partner ceases to receive the benefit of a child care subsidy.  The information: the first month in which he or she did not receive the benefit. 3. The event: the amount of child care expenses paid by the individual or his or her cohabiting spouse or common-law partner for a particular month is different from the monthly amount last reported to the Provincial Minister for the care of a qualified dependant in respect of whom the benefit of a child care subsidy is received.  The information: the amount of the child care expenses paid for the particular month for that dependant.  1998, c. 34, s. 74; 2001, c. 23, s. 133 (9); 2004, c. 16, s. 3. Notification and election on change (15) A notification given under subsection 122.62 (4) of the Federal Act or an election made under any of subsections 122.62 (5) to (7) of that Act shall also be considered to be a notification or election given or made for the purposes of this section, except that an election shall not be considered to be an election for the purposes of this Act if the result of it would be a reduction in the amount of the overpayment of tax deemed under this section to arise during the remaining months in the benefit year to which the election relates.  1998, c. 34, s. 74; 2004, c. 16, s. 3. Notice of entitlement in event of change (16) The Provincial Minister shall send to an individual a notice of entitlement whenever the Provincial Minister becomes aware, (a) that a change has occurred that affects the amount of the individual’s overpayment of tax that is deemed to arise under this section for a benefit year; or (b) that the individual has received an amount to which he or she is not entitled under this section.  1998, c. 34, s. 74; 2004, c. 16, s. 3. Same (17) The notice of entitlement shall contain, (a) the information required by subsection (10); (b) the individual’s rights to object to the Provincial Minister’s determination; and (c) the amount, if any, the individual is required to repay to the Provincial Minister under subsection (25).  1998, c. 34, s. 74; 2004, c. 16, s. 3. Payment of additional supplement (18) The Provincial Minister may pay to an eligible individual an additional amount under this section for a benefit year, if the amount is not less than $10 and if, (a) the individual gives the notification and provides the information required under subsection (14) within four years of the day the original notice of entitlement for the benefit year under subsection (10) is mailed to the individual, in the case where the individual is entitled to the additional amount as a result of an event described in subsection (14); or (b) the Provincial Minister receives information from the Department of National Revenue establishing that the individual is entitled to the additional amount, in any other case.  1998, c. 34, s. 74; 2004, c. 16, s. 3. Person acting for individual (19) Subsection 159 (1) of the Federal Act applies with necessary modifications for the purposes of this section and section 8.6.  1998, c. 34, s. 74; 2004, c. 16, s. 3. Part-year residents (20) For the purposes of this section, unless an individual is resident in Canada throughout a taxation year, (a) the individual’s income for the year shall be deemed to be equal to the amount that would have been the individual’s income for the year had the individual been resident in Canada throughout the year; and (b) the individual’s earned income for the year shall not exceed that portion of the amount that would, but for this clause, be the individual’s earned income that is included by virtue of section 114 of the Federal Act or subsection 115 (1) of that Act in computing the individual’s taxable income or taxable income earned in Canada, as the case may be, for the year.  1998, c. 34, s. 74; 2004, c. 16, s. 3. Bankruptcy (21) For the purposes of this section, if an individual becomes bankrupt in a taxation year, (a) the individual’s earned income for the year shall include the individual’s earned income for the taxation year that begins on January 1 of the calendar year that includes the date of bankruptcy; (b) the individual’s income for the year shall include the individual’s income for the taxation year that begins on January 1 of the calendar year that includes the date of bankruptcy; and (c) the total of all amounts deducted under section 63 of the Federal Act in computing the individual’s income for the year shall include the amount deducted under that section for the individual’s taxation year that begins on January 1 of the calendar year that includes the date of bankruptcy.  1998, c. 34, s. 74; 2004, c. 16, s. 3. Provincial Minister’s discretion (22) Despite any provision of this section other than subsections (35) and (36), the Provincial Minister may pay to an individual under this section an amount to which the individual would otherwise not be entitled, or an additional amount in excess of the amount to which the individual would otherwise be entitled, and may determine the amount or additional amount if the Provincial Minister considers that the payment should be granted for the relief of financial hardship.  1998, c. 34, s. 74; 2004, c. 16, s. 3; 2014, c. 7, Sched. 13, s. 1 (1). Provincial Minister’s decision final (23) A decision by the Provincial Minister under subsection (22) is final and not subject to review in respect of whether to pay an amount or additional amount and the amount of the payment.  1998, c. 34, s. 74; 2004, c. 16, s. 3. Amount not to be charged (24) An amount deemed by this section to be an overpayment of tax on account of an individual’s liability under this Act for a taxation year, (a) cannot be assigned, charged, attached or given as security and any transaction purporting to assign, charge, attach or give it as security is void; (b) cannot be garnished; and (c) cannot be retained by way of deduction or set-off under the Financial Administration Act.  1998, c. 34, s. 74; 2004, c. 16, s. 3. Repayment (25) If an individual receives under this section an amount to which the individual is not entitled or that is in excess of the individual’s entitlement under this section, the individual is liable to repay the amount to the Provincial Minister.  1998, c. 34, s. 74; 2004, c. 16, s. 3. Recovery of amount (26) Subject to subsection (27), an amount repayable under subsection (25) that has not been repaid to the Provincial Minister, (a) 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; and (b) shall be deemed for the purposes of sections 31 to 36 to be tax payable under this Act.  1998, c. 34, s. 74; 2004, c. 16, s. 3. Time limit (27) Subject to subsections (28) and (29), an individual ceases to be liable to repay an amount under subsection (25) on the day that is four years after the date of mailing of the original notice of entitlement for the benefit year to which the amount or excess amount relates, unless before that day the Provincial Minister has sent a notice of entitlement under subsection (16) setting out the amount required to be repaid.  1998, c. 34, s. 74; 2004, c. 16, s. 3. Exception (28) Subsection (27) does not apply if the liability to repay the amount under subsection (25) arises by reason of a change in an amount determined under the Federal Act.  1998, c. 34, s. 74; 2004, c. 16, s. 3. Same (29) Subsection (27) does not apply, (a) if the individual or another person who filed an application or provided information under this section or section 8.6 made any misrepresentation or omission that is attributable to neglect, carelessness or wilful default or committed any fraud in filing a return under this Act or the Federal Act, or in filing an application or providing information under this section or section 8.6; and (b) if it is reasonable to believe that part or all of the amount repayable under subsection (25) would not have been paid by the Provincial Minister in default of the misrepresentation, omission or fraud.  1998, c. 34, s. 74; 2004, c. 16, s. 3. Cohabiting spouse or common-law partner liable (30) If a person was the cohabiting spouse or common-law partner of an individual on the day the individual filed an application under this section, the individual and the person are jointly and severally liable to repay any amount that the individual is required to repay under this section in respect of the time period to which the application relates, if the person was the individual’s cohabiting spouse or common-law partner at the time the amount was paid to the individual.  2001, c. 23, s. 133 (10); 2004, c. 16, s. 3. Special circumstances (31) Despite subsection (25), if because of special circumstances the Provincial Minister, in his or her discretion, considers it unreasonable to demand repayment of the whole amount due under that subsection, the Provincial Minister may accept such amount as he or she considers appropriate in the circumstances.  1998, c. 34, s. 74; 2004, c. 16, s. 3. Powers and duties not transferred (32) In the application of sections 31 to 36 to recover amounts referred to in subsection (25), all references to “Minister” and “Provincial Minister” shall be read as references to “Minister of Finance”, and subsection 31 (4) shall not apply.  1998, c. 34, s. 74; 2004, c. 16, s. 3. Notices (33) Any notice or other document sent by the Provincial Minister under this section or section 8.6 by ordinary letter mail or its equivalent shall be deemed to be received by the person to whom it was sent on the day it is mailed.  1998, c. 34, s. 74; 2004, c. 16, s. 3; 2009, c. 33, Sched. 16, s. 6 (1). Money appropriated by the Legislature (33.1) The money required for the purposes of this section shall be paid out of the money appropriated for those purposes by the Legislature.  2008, c. 7, Sched. I, s. 4. Regulations (34) The Lieutenant Governor in Council may make regulations prescribing, with or without modifications, additional provisions of the Federal Act that apply for the purposes of this section and the manner in which they apply.  1998, c. 34, s. 74; 2004, c. 16, s. 3. Application deadline (35) Despite any other provision in this Act, the Provincial Minister shall not make a payment to an individual under this section and no individual is entitled to receive a payment under this section if the application referred to in clause (4) (c) is not filed before January 1, 2016. 2014, c. 7, Sched. 13, s. 1 (2). Entitlement deadline (36) Despite any other provision in this Act, the Provincial Minister shall not make a payment to an individual under this section after December 31, 2016 and no individual is entitled to receive a payment under this section after that date unless the individual’s entitlement to the payment arose by reason of an objection to a determination made by the Provincial Minister under this section. 2014, c. 7, Sched. 13, s. 1 (2). Regulations (37) The Provincial Minister may make regulations for the purposes of subsection (35) or (36) prescribing a date that is later than a date set out in those subsections. 2014, c. 7, Sched. 13, s. 1 (2). Effect of regulation (38) If the Provincial Minister prescribes a later date under subsection (37), the prescribed date applies for the purposes of subsection (35) or (36) instead of the date it replaces. 2014, c. 7, Sched. 13, s. 1 (2). Section Amendments with date in force (d/m/y) 1998, c. 34, s. 74 - 1/07/1998; 1999, c. 9, s. 122 (1) - 1/07/1999 2000, c. 10, s. 16 (2, 3) - 1/07/2000 2001, c. 23, s. 133 (1-10) - 1/01/2001 2004, c. 16, s. 3
- 1/01/2004 2006, c. 33, Sched. N, s. 5 (1) - 1/01/2006; 2006, c. 33, Sched. N, s. 5 (2, 3) - 20/12/2006 2007, c. 7, Sched. 17, s. 3 (1, 2) - 17/05/2007 2008, c. 7, Sched. I, s. 4 - 14/05/2008 2009, c. 18, Sched. 13, s. 1 (1, 2) - 1/01/2009; 2009, c. 33, Sched. 16, s. 6 (1) - 15/12/2009 2011, c. 9, Sched. 20, s. 1 (1, 3, 4) - 12/05/2011; 2011, c. 9, Sched. 20, s. 1 (2) - 1/07/2008 2014, c. 7, Sched. 13, s. 1 (1, 2) - 24/07/2014; 2014, c. 11, Sched. 6, s. 5 (1, 2) - 31/08/2015 CTS 6 OC 14 - 3