Understanding Ontario Trillium Benefit (OTB), Goods and Services Tax/Harmonized Sales Tax Credit (GSTC), and Canada Carbon Rebate (CCR) Notices: A Guide for Newcomers

As a newcomer to Canada, receiving official notices from the Canada Revenue Agency (CRA) can be both intimidating and confusing. However, rest assured that these notices are not cause for alarm; they are essential tools in assessing the eligibility of taxpayers as well as newcomers to Canada for receiving government-sponsored benefits and programs.

Newcomers to Canada may receive an Ontario Trillium Benefit (OTB) and Goods and Services Tax Credit (GSTC) notice if CRA is missing their or spouse’s world income.

As a newcomer to Canada, it’s essential to declare both your worldwide income and your spouse’s if you’re married. The CRA considers both your income and your spouse’s income when determining your OTB entitlement.

RC151: You can do this by filling out Form RC-151 - GST/HST Credit and Canada Carbon Rebate Application for Individuals Who Become Residents of Canada. Failing to declare your income accurately may result in the withholding of your benefits until the Canada Revenue Agency (CRA) can assess your worldwide income.

Some newcomers to Canada who have already filed Form RC-151 may also receive a notice from the Canada Revenue Agency (CRA). This notice could request additional clarifications and confirmations regarding their application. It is critical that you respond promptly to this notice and provide the CRA with the requested information and clarifications. Failure to do so may result in delays or issues with your benefits.

Marital Status Change: You may also receive an OTB, GSTC notice if at anytime during the tax year your marital status changes. The OTB and GSTC consider combined household income in the calculation of the benefits. For example, if you were receiving benefits as a single individual and your marital status changes at any time during the year, the CRA recalculates your entitlement for the period based on your joint income. If you received OTB payments before your marital status changed, you may need to repay part or all of those benefits.

You may also receive a notice from the CRA for your Canada Carbon Rebate (CCR) entitlement, if your marital status changes at anytime during the tax year. If you have a common-law partner or if you are married, only one of you can receive the CCR for the family. The CCR is paid to the person who files their taxes first. It does not matter who files first; the payment amount remains the same regardless of income.

As mentioned earlier, you are required to respond to CRA notices promptly. Delays in response may result in the withholding of your benefits by the CRA. You can respond to the CRA notices:

Online : Through My Account CRA. Log in, navigate to the relevant section, and follow the instructions.

Phone : Contact the individual tax enquiries line at 1-800-959-8281

Mail : If the notice requires a physical response such as Form RC-151, follow the instructions provided in the notice. Send any requested documents or forms by mail.

For further information please contact Taxtron Support at 416-491-0333 or visit www.taxtron.ca