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.
These corporations, that are exempt from corporate tax, need to be registered for hydro PILs with the Ontario Ministry of Finance:
Before registering an account with the Ministry of Finance, you need to first register with ServiceOntario to get your Ontario corporation number.
After registering your business, request a hydro PILs tax account with the Ministry of Finance
If you have any questions, please call the ministry at 1 866 ONT-TAXS (1 866 668-8297).
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.
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.
To file electronically, login to ONT-TAXS online and upload:
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 instalment and/or balance of tax payments can be made:
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.
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.