The Ontario Sales Tax Transition Benefit (STTB) will provide temporary relief to residents of
Ontario to help them adjust to the new harmonized sales tax system that comes into effect on
July 1, 2010.

The STTB will be paid to eligible Ontario tax filers in three tax-free instalments in June 2010,
December 2010 and June 2011. The maximum benefit amount is $300 for single people and
$1,000 for families (including single parents).

The benefit payments to single people will be reduced if their adjusted net income is greater than
$80,000. The benefit payments to families will be reduced if their adjusted family net income is
greater than $160,000. The reduction will be equal to 5% of the income amount that is greater
than the threshold amounts. For example, a single person with adjusted net income of $81,000
would receive three benefit payments of $50 each. Single people with income over $82,000
would not receive a benefit.

The table below shows the maximum benefits and the income ranges over which the benefit is phased-out.

To qualify for the STTB, you are required to file a 2009 income tax return for the June 2010 and
December 2010 payments, and a 2010 return for the June 2011 payment. If both you and your
spouse or common-law partner file a tax return, the benefit payments will be made to the
individual whose return is assessed by the CRA first.

This TAX TIP deals with a wide variety of issues and the information is general in nature. As each person’s circumstances are unique, readers are urged to consult W&P prior to acting on the basis of material in this Tax Tip. If you have any questions regarding the content of this or any other Tax Tips, please contact the W&P Tax Group.

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