Actions tracking

Clarify premium and tax payment requirements for insurance products under the Retail Sales Tax Act

Status: Action tracking

What we heard

Businesses find some premium and tax payment requirements unclear or need of simplification. For example:

  • in some situations, it is not clear who is responsible for remitting retail sales tax for applicable insurance products
  • Retail Sales Tax (RST) refunds are not available for insurance premiums refunded more than four years after they were originally due
  • the timing of tax payments is different for “funded” and “unfunded” employee benefit plans

Our plan

As part of its commitment to modernizing Ontario’s tax system, the Ministry of Finance reviews the legislation and regulations it’s responsible for on an ongoing basis. The ministry will continue to find ways its tax legislation and regulations can be made clearer or simplified.

Simplify tax forms under the Corporations Tax Act

Status: Action tracking

What we heard

Complying with the Corporations Tax Act is overly complex and the online system does not support the end user.

Our plan

As part of its commitment to modernizing Ontario’s tax system, the Ministry of Finance reviews the legislation and regulations it’s responsible for on an ongoing basis. The ministry will continue to find ways its tax legislation and regulations can be made clearer or simplified.

No action recommended

Consolidate the number of tax acts and regulations that apply to Ontario businesses

Status: No action recommended

What we heard

Tax rules at the federal and provincial level are repetitive and complex. For example, agencies at both levels of government request the same information. There is also a lack of coordination around tax credits and business dissolution. In addition, tax audits require too much paperwork and auditors provide poor customer service, often treating businesses as “guilty until proven innocent”. As well, there are overlapping rules under the Employer Health Tax Act and the Taxation Act.

Our plan

The Ministry of Finance does not recommend consolidating Ontario’s tax acts. In the context of tax legislation, consolidation would not serve the needs of taxpayers and may even be detrimental to overall efficiency. The Employer Health Tax Act deals with a tax that is only applicable to certain taxpayers (employers) and is administered provincially. Combining it with the Taxation Act, 2007, which applies to all taxpayers and is administered by the federal government under delegation by the province, would not promote clarity or improve compliance.

Improve the Municipal Property Assessment Corporation’s property re-assessment process

Status: No action recommended

What we heard

The Municipal Property Assessment Corporation’s (MPAC) responses to requests for reconsideration can be perceived as inflexible and unfair.

Our plan

The Request for Reconsideration process is a less formal, first stage of the appeal process that enables the efficient resolution of assessment issues. The Ministry of Finance has improved the process by standardizing timelines. The percentage of property owners who file a request for reconsideration has decreased and the share of property owners satisfied with MPAC’s service has increased from 65% in 2013 to 70% in 2016. Property owners who disagree with MPAC’s response to the outcome of their request for reconsideration may file an appeal with the Assessment Review Board, an independent tribunal.