Definition of "Gross Revenue" for the Period January 1, 2001 to December 31, 2007, for the Purposes of the Gross Revenue Charge

Tax Bulletin EA 1-2007, March 2008

This bulletin provides details on the definition of "gross revenue" for the period January 1, 2001 to December 31, 2007 for owners of hydro-electric generating stations and water power lease holders who are liable to pay the taxes and charges on the gross revenues of hydro-electric generating stations under section 92.1 of the Electricity Act, 1998 (Act).
The information in this bulletin does not replace the law found in the Act and related regulations. This bulletin replaces Tax Bulletins EA 1-2006, EA 1-2005, EA 1-2004 and EA 1-2003.

Background

Gross Revenue Charge (GRC)

Effective January 1, 2001, the existing property taxes and water rental charges paid by hydro-electric generating station owners and water power lease holders were replaced with the taxes and charges on the gross revenues of hydro-electric generating stations. These taxes and charges under section 92.1 of the Electricity Act, 1998 represent separate components of what is known as the Gross Revenue Charge (GRC). For information about the Gross Revenue Charge, refer to Ontario Tax Bulletin EA 1-2002 - Taxes and Charges on the Gross Revenues of Hydro-electric Generating Stations.

The GRC regulation (O. Reg. 124/02) defined gross revenue for the period January 1, 2001, to December 31, 2006, to be the amount determined by multiplying the station's annual generation for the year by a price of $40,000/gWh.

Regulation Amended

Gross Revenue for 2007

The GRC regulation has been amended by O. Reg. 125/07 to provide that the same calculation ($40,000/gWh) continues to apply through December 31, 2007.

Additional Information

If this bulletin does not completely address your particular situation, refer to the Electricity Act, 1998 and related regulations, or contact the:

Ministry of Revenue
Client Accounts and Services Branch
33 King Street West
PO Box 625
Oshawa ON L1H 8H9

Toll-free: 1 866 ONT-TAXS (1 866 668-8297)
Fax: 905 436-4511
TTY (Teletypewriter): 1 800 263-7776

This bulletin and various other English and French tax materials published by the Ministry of Revenue may be obtained online at ontario.ca/revenue.

The Electricity Act, 1998 and Ontario's other public statutes and regulations may be obtained online at www.e-laws.gov.on.ca.

ISBN 978-1-4249-6223-5