What Should You Do If The Ontario Ministry of Revenue Refuses You An HST Cheque?
I was asked this question this week and there is no easy answer.
The Ontario government promised eligible Ontario individual taxpayers (or couples) 3 HST rebate cheques (the transition benefit) to be sent on or about June 2010, December 2010 and June 2011. If you have not received your HST cheque from the Ontario Ministry of Revenue, you should determine whether you meet the eligibility criteria.
Assuming that you meet the eligibility criteria, you should call the authorities to see if they have made an error. The Canada Revenue Agency (CRA) administers the Ontario Sales Tax Transition Benefit Program and can be reached at 1-877-627-6645.
It is possible that the CRA has set off your HST rebate against an income tax or other tax debt. The good news is that you are still receiving the benefit, just not in the way you had hoped. Others may find that there is a tax dispute that is outstanding or beginning. Unfortunately, that dispute may play its course before the cheques will be sent.
Some taxpayers will learn that the CRA has determined that they are not eligible for the HST rebate cheques. You may be given the opportunity to prove eligibility or you may be informed of the CRA's decision. Assuming there is a refusal to issue the Ontario HST transitional rebate cheque, there are few great options.
When a government department, body or agency makes an incorrect decision or does not act in accordance with the law, the affected person may file an application for judicial review. In a judicial review, the court looks at the decision of the government decision-maker. The problem with a judicial review is that it takes time, is very costly and the court is deferential to the government (meaning they usually agree with the government). The legal fees could run into the tens of thousands of dollars (will cost much more than the HST cheque amount). You will need a lawyer to help you prepare and file the application for judicial review on time. You may only have 30 days from the date you knew of the adverse decision to file the application for judicial review.
Another possibility is bringing a small claims court action against the government. This option is less expensive, but also takes time and your energy. There is a cost to filing a small claims court action.
Another possibility is filing a complaint with the Ontario Ombudsman whose job is investigating complaints against the Ontario Government. There is no cost to filing a complaint. The Ombudsman may or may not accept the complaint. If the Ombudsman accepts the complaint (he would likely want others to come forward with the same problem), he will write a report. It is unlikely that the report will be issued before the Ontario election as the Ombudsman will have to conduct his investigation and then write a report.
Another realistic possibility is calling the candidates running in your riding. During the Ontario election campaign, incumbents and challengers should be the most interested in resolving the issue. That being said, they may be busy campaigning and may be reluctant to get involved with a private matter.
In addition, there is social media and the media. Many MPPs are on Twitter. If you start writing about your issue to a real live MPP, then you may find others who have the same problem. You may get blocked or a visit from the police if your tweets get too threatening - so, keep to the facts and ask nicely for help. While you may be angry at the CRA or the Ontario Government, the MPPs did not do this to you - so, do not mistreat them. Remember the old saying "you catch more bees with honey than with vinegar".
A group has a louder voice than a single person. Social media may bring you supporters and fellow refused persons. If hundreds or thousands are being denied the HST transition rebate for no good reason, this could get media attention.
Depending on how large the group of individuals who have been refused HST transition rebate cheques without a reasonable explanation becomes, they may bring a class action law suit - but this is another expensive option.
Please share with us whether you have been refused an HST transitional rebate.
Cyndee Todgham Cherniak is counsel to and in affiliation with the International Trade Law and the Tax Law (Commodity Tax
