Ontario Hydro Payments in Lieu of Federal and Provincial Corporate Tax (Hydro PILs), under Part VI of the Electricity Act, 1998, are imposed on Hydro One Inc., subsidiaries of Hydro One Inc., Ontario Power Generation Inc., subsidiaries of Ontario Power Generation Inc. and municipal electricity utilities (MEUs) that produce, transmit, distribute or retail electricity in Ontario. Hydro PILs are comprised of both federal and provincial components at current federal and provincial corporate income tax rates. PILs tax clients are liable to make federal and provincial PILs payments to Ontario, and submit tax returns no later than six months after the end of their taxation year.
How do I register for an Ontario Hydro PILs Tax account?
- Register with the Ontario Ministry of Government Services to obtain your Ontario Corporation Number (OCN).
- Complete the Request for Registration form [PDF - 576 KB] to request an account with the Ministry of Finance.
If you have any questions please call the ministry at 1 866 ONT-TAXS (1 866 668-8297).
How do I obtain my Hydro Payments in Lieu Return?
You can continue to access your T2 Corporation Income Tax Return (T2) and prior year versions online at the Canada Revenue Agency (CRA) website.
You can also access pre-2009 Ontario CT23 returns through the Ministry of Finance website.
How do I file my Hydro Payments in Lieu Return?
You can file your T2 Corporation Income Tax Returns beginning with the 2009 taxation year using ONT-TAXS online. You may securely upload your Hydro PILs T2 return electronically. The format of your Hydro PILs T2 return must be a .COR data file as prescribed by CRA. You are also required to attach a PDF copy of your T2 return. You can attach your organization's financial statements and/or supporting documents with the submission of your return. The following formats are acceptable for financial statements and supporting documents: PDF, TXT, DOC, XLS and PPT.
For more information, visit the CRA website or read Guide T4012, T2 Corporation - Income Tax Guide. You can also continue to file a CRA issued paper return.
For taxation years prior to 2009, you are required to file a paper T2 and CT23 return.
You can file your return:
To contact ServiceOntario:
- visit their website
- call: 416 326-1234 / 1 800 267-8097
- teletypewriter (TTY): 416 325-3408 / 1 800 268-7095
- fax: 416 325-3407
Returns and payments should not be sent to the CRA. All returns and payments should be sent to the Ministry of Finance. However, a NIL T2 return must be filed with the CRA.
How do I register for ONT-TAXS online?
Visit ontario.ca/finance, select ONT-TAXS online and Get Started, or call the ministry at 1 866 ONT-TAXS (1 866 668-8297).
Who should be registered as a Hydro Payments in Lieu tax return filer?
The following corporations are required to register as a Hydro Payments in Lieu tax return filer:
- Hydro One Inc. and all its subsidiaries
- Ontario Power Generation Inc. and all its subsidiaries, and
- all municipal electricity utilities servicing Ontario.