The Ontario Trillium Benefit

On July 16, 2012, the Office of the Superintendent of Bankruptcy (OSB) has published their position regarding the treatment of the Ontario Trillium Benefit. This benefit will now combine three refundable tax credits: the Ontario Energy and Property Tax Credit (OEPTC), the Northern Ontario Energy Credit (NOEC) and the Ontario Sales Tax Credit (OSTC).
The OSB’s position is that, subject to court interpretation to the contrary, the Ontario Trillium Benefit is exempt from seizure. Therefore, this benefit is not property of the bankrupt divisible among the creditors. On the other hand, under section 68 of the Bankruptcy and Insolvency Act (BIA) the benefit must be accounted for in the surplus income calculation.