Actions in progress

Streamline the Ontario Gas Card program

No action recommended

Harmonize Employer Health Tax Act and Canada Revenue Agency processes

Alert employers as they approach the employer health tax reporting threshold

Streamline property tax classifications

Introduce a grace period for companies moving from the small business tax rate to the general rate

Streamline the Ontario Gas Card program

Status: Action in progress

What we heard

The process to apply for a refund for tax-exempt sales to First Nations individuals is largely paper-based and burdensome for on-reserve gasoline retailers.

Our plan

The government is working with First Nation communities, gasoline retailers, and industry stakeholders to explore options to modernize the Ontario Gas Card program to improve service, program efficiency and integrity. This review will consider online options for processing refunds, with final recommendations to be proposed in spring 2017.

Harmonize the Employer Health Tax Act with Canada Revenue Agency processes (same way provincial and federal sales taxes were harmonized)

Status: No action recommended

What we heard

The Ontario Ministry of Finance and the Canada Revenue Agency do not harmonize processes. Payroll for in and out of province employees is difficult to complete.

Our plan

Aligning the Employer Health Tax with federal payroll taxes could mean changing how these taxes are applied. This would significantly impact provincial tax revenues and could create new burdens for business.

Tax rate changes are not a regulatory issue that can be dealt with under the Red Tape Challenge. However, the government reviews all taxes, fees and programs as part of the annual budget process.

Alert employers as they approach the employer health tax reporting threshold

Status: No action recommended

What we heard

Businesses are not alerted when they are approaching the Employer Health Tax threshold.

Our plan

The Ministry of Finance reviewed this opportunity closely. The ministry found that in order to track when an employer is approaching the threshold, the government would have to add additional filing and reporting requirements, creating additional burden for businesses. Therefore, no action will be taken at this time.

Streamline property tax classifications

Status: No action recommended

What we heard

Property tax classifications are more complex in Ontario than other jurisdictions.

Our plan

The Ministry of Finance reviewed this opportunity closely. The ministry found that reducing the number of property classes would make Ontario’s property tax system less fair and predictable, and could actually increase property taxes for some businesses. Therefore, no action will be taken at this time.

Introduce a grace period for companies moving from the small business tax rate to the general rate

Status: No action recommended

What we heard

Surpassing the small business corporate income tax threshold is perceived as a disincentive to grow a business.

Our plan

The Ministry of Finance reviewed this opportunity closely. Any change to the small business corporate income tax threshold, including creating a ‘grace period’ window for businesses transitioning to the general corporate income tax rate, could significantly impact provincial tax revenues and could create new administrative burdens for business.

Tax rate changes are not a regulatory issue that can be dealt with under the Red Tape Challenge, so no action will be taken.