Frequently Asked Questions About Ontario Tax Credits for Corporations

General

What are the benefits of a single administration of federal and provincial income taxes for corporations that file their corporate tax returns in Ontario?
Who is responsible for reviewing Ontario tax credit claims?
Who should I contact about the status of my tax credit claim?

Filing a tax credit claim

What forms do I use to file my Ontario tax credit claim(s) and where can I find the relevant forms?
Where do I file these forms?
Are certificates of eligibility still required for Ontario refundable tax credits?
Will I still need to use my provincial corporate tax account number or just my Business Number?
When is the deadline to file a corporate tax return?
What is the normal reassessment period?
Who will assess my corporate tax return?
Who will issue my refund cheque?

Service standards

How long will it take to process my tax credit claim?
What is considered a complete claim for Ontario refundable tax credits purposes?

Tax advisory/rulings

Where do I send my request for an advance tax ruling or a technical interpretation under the Ontario Corporations Tax Act or Taxation Act, 2007 for matters involving Ontario tax credits?

Objections

What do I do if I disagree with my (re)assessment?
How long will it take for my objection to be dealt with?
What do I do if I disagree with the CRA's decision about my objection?

Appeals

How can I appeal the (re)assessment related to Ontario tax credits?
Where can I get more information about the appeals process, for example—forms and timelines?

Service complaint resolution

What should I do if I am not satisfied with the service I have received from the CRA after exhausting normal complaint channels?
What should I do if I am not satisfied with the review made by the CRA Service Complaints Program?

What are the benefits of a single administration of federal and provincial income taxes for corporations that file their corporate tax returns in Ontario?

The result of the administration of federal and Ontario corporate taxes by the Canada Revenue Agency (CRA) is a more streamlined tax system for corporations that file their tax returns in Ontario.

Ontario corporations whose tax years end on or after January 1, 2009, benefit from the single T2 Corporation Income Tax Return (T2 return), one set of rules, one audit, one process for objections and appeals, one point of contact and intake centre for voluntary disclosures related to corporate taxes, and one tax administrator.

Single administration saves Ontario businesses up to $100 million a year in compliance costs and an additional $90 million in reduced corporate taxes due to Ontario adopting the federal tax base.

Who is responsible for reviewing Ontario tax credit claims?

As of April 3, 2008, the CRA is responsible for reviewing claims for the following Ontario tax credits:

Non-refundable tax credits

Tax credit for manufacturing and processing
Foreign tax credit
Resource tax credit
Ontario research and development tax credit
Corporate minimum tax credit
Political contribution tax credit

Refundable tax credits

Qualifying environmental trust tax credit
Co-operative education tax credit
Apprenticeship training tax credit
Ontario computer animation and special effects tax credit
Ontario film and television tax credit
Ontario production services tax credit
Ontario interactive digital media tax credit
Ontario sound recording tax credit
Ontario book publishing tax credit
Ontario innovation tax credit
Ontario business-research institute tax credit

Who should I contact about the status of my tax credit claim?

All enquiries about the status of a tax credit claim should be directed to the CRA at 1 800 959-5525.

What forms do I use to file my Ontario tax credit claim(s) and where can I find the relevant forms?

For tax years ending on or before December 31, 2008, you must file an Ontario CT23 Corporations Tax and Annual Return (CT23 return), and where applicable the appropriate schedule(s) and/or certificate(s) of eligibility with the Ontario Ministry of Finance (ministry).

If you are only claiming the co-operative education tax credit, you may be eligible to file the CT23 Short-Form Corporations Tax and Annual Return, provided you meet other requirements. For more details, please see Information Bulletin 4001R1 - Combined Return, Short-Form Return and the Exempt from Filing Policy for Corporations.

The CT23 return and the applicable schedules are available on the Corporations Tax – Forms and Publications page on the ministry website.

For tax years ending on or after January 1, 2009, you must file a T2 return, the appropriate schedules and, where applicable, certificate(s) of eligibility with the CRA. The T2 return and the schedules are available on the CRA website.

For more information on how to claim the following tax credits, please select the appropriate link below:

Non-refundable tax credits

Refundable tax credits

Where do I file these forms?

For tax years ending on or before December 31, 2008, you should send your completed CT23 return along with the appropriate schedules to the following address:

Ontario Ministry of Finance
Corporations Tax
33 King Street West
PO Box 620
Oshawa ON L1H 8E9

For tax years ending on or after January 1, 2009, you must file a harmonized T2 return with the CRA. The mailing address for filing your T2 return and the applicable schedules depends on where the corporation is located. A list of mailing addresses is available on the Where to send your corporation income tax (T2) return page on the CRA website.

If you want to file your T2 return electronically, visit the Corporation Internet Filing page on the CRA website.

Are certificates of eligibility still required for Ontario refundable media tax credits?

Yes, certificates of eligibility are still required for Ontario refundable media tax credits. You have to send the certificate of eligibility (or copy) to the CRA for tax years ending on or after January 1, 2009.

For tax years ending on or before December 31, 2008, you have to send the certificate of eligibility to the ministry.

The Ontario Media Development Corporation (OMDC) will continue to issue certificates for the following refundable media tax credits:

Ontario computer animation and special effects tax credit
Ontario film and television tax credit
Ontario production services tax credit
Ontario interactive digital media tax credit
Ontario sound recording tax credit
Ontario book publishing tax credit

For more information on how to get a certificate of eligibility, please call the OMDC at 416 314-6858 and/or visit the OMDC website.

More frequently asked questions on the Ontario refundable media tax credits are available on the ministry website.

Will I still need to use my provincial corporate tax account number or just my Business Number?

For tax years ending on or before December 31, 2008, you must include your provincial corporate tax account number on the CT23 return and your Business Number (BN) on the T2 return.

If you need to open an Ontario corporate tax account number, please contact the ministry at:

1 866 ONT-TAXS (1 866 668-8297)
1 800 263-7776 for teletypewriter (TTY)
1 905 433-6000 (outside North America)

For tax years ending on or after January 1, 2009, you have to file a T2 return using your Business Number for the federal corporate income tax account. For more information, please see the CRA's Pamphlet, RC2 The Business Number and Your Canada Revenue Agency Accounts.

When is the deadline to file a corporate tax return?

Corporations must file their CT23 return and/or T2 return within six months of their tax year-end.

What is the normal reassessment period?

For tax years ending on or before December 31, 2008, the normal reassessment period is as follows:

For a Canadian-controlled private corporation (CCPC), it is the period that ends four years after the mailing date of the original notice of assessment.
For a non-CCPC, it is the period that ends five years after the mailing date of the original notice of assessment.

For more details, please see Interpretation Bulletin 3009R, Statute Barred Periods.

For tax years ending on or after January 1, 2009, the normal reassessment period for a CCPC is the period that ends three years after the day of mailing of an original assessment. If the corporation was not a CCPC at the end of the tax year, the CRA can reassess a return within four years of the mailing date of the original notice of assessment for the tax year.

For more information, please call the CRA at 1 800 959-5525 or visit the CRA website.

Who will assess my corporate tax return?

For tax years ending on or before December 31, 2008, the ministry processes all Ontario CT23 returns and sends them to the CRA for audit verification. All assessments and reassessments for tax years ending on or before December 31, 2008, will be sent from the ministry.

For tax years ending on or after January 1, 2009, the CRA will process all T2 returns (these returns include necessary Ontario schedules). All assessments and reassessments will be sent from the CRA.

Who will issue my refund cheque?

For tax years ending on or before December 31, 2008, Ontario corporate tax refunds are issued by the ministry.

For tax years ending on or after January 1, 2009, Ontario and federal corporate tax refunds are issued by the CRA. These refunds will be net of any federal and provincial outstanding taxes.

How long will it take to process my tax credit claim?

For non-refundable tax credits, except for the Ontario research and development (R&D) tax credit, the processing time is usually within 60 days of the CRA's receipt of your T2 return and the applicable schedules.

All Ontario R&D tax credit claims (the refundable Ontario innovation tax credit, the Ontario business-research institute tax credit and the non-refundable Ontario research and development tax credit) are reviewed at the same time as their federal scientific research and experimental development counterparts. The processing time depends on whether or not the federal claim is refundable.

Refundable claims are usually processed within 120 days of the CRA's receipt of a complete claim.
Claims received with an amended T2 return are usually processed within 240 days of the CRA's receipt of a complete claim.
Non-refundable federal claims are usually reviewed within 365 days of the CRA's receipt of a complete claim.

The above processing times apply to claims that have been selected for review. Claims that are accepted as filed are processed much earlier.

If your claim for an Ontario film and television tax credit or the Ontario production services tax credit is not selected for audit, the processing time is usually within 60 days of the CRA receiving your complete claim. If your claim is selected for audit, the processing time is usually within 120 days of the CRA receiving your complete claim.

All other refundable tax credits are processed within a reasonable time frame.

The CRA is committed to meeting the above service standards 90 per cent of the time.

What is considered a complete claim for Ontario refundable tax credits purposes?

For tax years ending on or before December 31, 2008, a claim is considered complete when the required CT23 return, applicable schedules, and documentation (for example—certificates of eligibility) for all the Ontario refundable tax credits being claimed are filed with the ministry.

For tax years ending on or after January 1, 2009, a claim is considered complete when the required T2 return, supporting schedules, and documentation if applicable (for example—certificates of eligibility) for all the Ontario refundable tax credits being claimed are filed with the CRA.

For example—if a corporation is claiming the Ontario film and television tax credit and the Canadian film or video production tax credit, both claims will be considered complete once the following documents are filed with the CRA:

certificate of eligibility issued by the OMDC;
complete T2SCH 556, Ontario Film and Television Tax Credit;
Canadian Film or Video Production Certificate (Part A) and, if available at the time of filing the T2 return, the Certificate of Completion (Part B), issued by the Canadian Audio Visual Certification Office;
Form T1131, Claiming a Canadian Film or Video Production Tax Credit; and
T2 return and all other required schedules.

Note
The CRA will not begin reviewing and verifying a claim until all the necessary documentation is received for all the Ontario refundable tax credits being claimed.

Where do I send my request for an advance tax ruling or a technical interpretation under the Ontario Corporations Tax Act or Taxation Act, 2007 for matters involving Ontario tax credits?

You should send your requests for advance tax rulings to the CRA.

More information can be found in Information Circular 70-6R5, Advance Income Tax Rulings.

What do I do if I disagree with my (re)assessment?

For tax years ending on or before December 31, 2008, if you disagree with a (re)assessment, you can file an objection with the CRA within 180 days of the date of the notice of (re)assessment, using form ON100, Notice of Objection – Ontario Corporations Tax Act.

For tax years ending on or after January 1, 2009, you can file an objection with the CRA within 90 days of the day the CRA mails the notice of (re)assessment, using form T400A, Objection – Income Tax Act.

More information about the objections process is available on the Resolving disputes page on the CRA's website.

How long will it take for my objection to be dealt with?

The review process of an objection differs according to what's in disagreement or dispute. The goal of the CRA is to make first contact with clients, through an initial letter, within 30 calendar days of the date an objection is received.

What do I do if I disagree with the CRA's decision about my objection?

If you disagree with the CRA's decision about your objection you may file an appeal. For more information on how to file an appeal, please visit the Resolving disputes page on the CRA's website or call toll free at 1 800 959-5525.

How can I appeal the (re)assessment related to Ontario tax credits?

For tax years that ended on or before December 31, 2008, an appeal of your Ontario (re)assessment is filed with the Ontario Superior Court of Justice.

For tax years that ended on or after January 1, 2009, an appeal of your Ontario (re)assessment is generally filed with the Tax Court of Canada. However an appeal is made to the Ontario Superior Court of Justice, if the matter relates to an Ontario amount that is not based on an amount:

determined under the Federal Income Tax Act (Canada) [ITA], or
that can be appealed under the ITA.

Where can I get more information about the appeals process, for example—forms and timelines?

An appeal to the Ontario Superior Court of Justice is made using form ON200, Notice of Appeal, which must be filed within 90 days of the date of the notification that the Minister of National Revenue has confirmed the (re)assessment or has reassessed your return.

For more information on filing an appeal with the Ontario Superior Court of Justice, please visit the Ontario corporations tax page on the CRA website.

You do not need a form to file an appeal to the Tax Court of Canada. You can appeal in writing, and state the reasons for your appeal and the relevant facts, within 90 days of the date of mailing of the notification that the Minister of National Revenue has confirmed the (re)assessment or has reassessed your return.

For more information on filing an appeal with the Tax Court of Canada, please see the Income tax page on the CRA website.

What should I do if I am not satisfied with the service I have received from the CRA after exhausting normal complaint channels?

If you are not satisfied with the service you have received from the CRA, you have the right to make a formal complaint. Before considering the service complaint process, the CRA strongly encourages you to:

first try to resolve the issue with the CRA auditor you have been dealing with; and
if you are not satisfied with the way your complaint has been handled, contact the auditor's team leader.

If you are still not satisfied with the way your complaint has been handled, you may want to refer the matter to the CRA – Service Complaints Program.

What should I do if I am not satisfied with the review made by the CRA Service Complaints Program?

You can make a formal complaint to the Taxpayers' Ombudsman about the service provided by the CRA.

Corporations Tax