Payments in Lieu of Federal and Provincial Corporate Tax

Hydro One Inc., Ontario Power Generation Inc., each of these corporations’ subsidiaries, and municipal electricity utilities, that are exempt from corporate tax, are liable to make payments in lieu of federal and provincial corporate tax to Ontario. These payments are known as hydro PILs.

Who should be registered for hydro PILs?

These corporations, that are exempt from corporate tax, need to be registered for hydro PILs with the Ontario Ministry of Finance:

  • Hydro One Inc. and its subsidiaries
  • Ontario Power Generation Inc. and its subsidiaries, and
  • municipal electricity utilities that generate, transmit, distribute or retail electricity.

Before registering an account with the Ministry of Finance, you need to first register with ServiceOntario to get your Ontario corporation number.

Register your business now

After registering your business, request a hydro PILs tax account with the Ministry of Finance

Download and complete the registration form [PDF – 576 KB]

If you have any questions, please call the ministry at 1 866 ONT-TAXS (1 866 668-8297).

Hydro PILs

Hydro PILs are comprised of both federal and provincial components at federal and provincial corporate tax rates.

Hydro PILs tax clients make hydro PILs payments and submit tax returns to the Ministry of Finance.

Filing a hydro PILs tax return

For tax years ending on or after January 1, 2009, you need to file a T2 corporation income tax return. You can file your return by mail or in person, or electronically using ONT-TAXS online.

More about the T2 corporation income tax return

To file electronically, login to ONT-TAXS online and upload:

  • your hydro PILs T2 return in a .COR data file format
  • a PDF copy of your T2 return, and
  • your organization's financial statements and/or supporting documents in a PDF, TXT, DOC, XLS or PPT file format.

Read: Guide T4012, T2 Corporation - Income Tax Guide

About ONT-TAXS online

Where to send your hydro PILs return

All returns and payments should be sent to:

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

Do not send your hydro PILs returns and payments to the Canada Revenue Agency.

You can also file your hydro PILs return in person at certain ServiceOntario locations.

Hydro PILs payments

Hydro PILs instalment and/or balance of tax payments can be made:

  • using ONT-TAXS online
  • in person at certain ServiceOntario locations
  • by mail to: Ministry of Finance, 33 King St W, PO Box 620, Oshawa ON L1H 8E9.

Payments should be made in Canadian funds and be made payable to the Minister of Finance. Your business number should be printed on the back of the cheque or money order.

Due dates, assessments and refunds

A completed tax return and any supporting documents need to be filed within six months after the end of your tax year.

If you do not file your return on time, you may receive an assessment that has automatically estimated an amount of tax owing. Estimated amounts will be calculated based on the average of total tax assessed on/up to the past six (6) filed tax returns excluding nil and credit tax returns.

Assessments will be sent out after your tax return is processed. If you are entitled to a refund, it will be paid after the assessment is issued.

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