September 2007 Focus Update #125

Ontario Ministry of Revenue issues a Retail Sales Tax Information Notice for ASO benefits plans

An Information Notice recently released by the Ontario Ministry of Revenue provides information on:

  • the differences between Funded and Unfunded benefits plans (i.e. ASO plans)
  • the responsibility of the planholder (i.e. plan sponsor) to designate their benefits plan as funded or unfunded
  • the definition of premium in regard to ASO benefits plans.
In particular, the notice addresses the changes announced in Ontario’s Bill 151 - An Act to enact various 2006 Budget measures and to enact, amend and repeal various Acts. (See Focus Update #108 ).

From our standpoint, the notice is timely. Recently we’ve been working with ASO customers affected by Bill 151 to ensure we comply with the legislation.

As well, the work we’ve been doing since 2003 to refine the routines and processes for our ASO customers puts us in an excellent position as an ASO administrator to support the legislative changes and what’s outlined in the Information Notice.

For more details, please refer to the Ontario Ministry of Revenue Information Notice that accompanies this Focus Update.  It is also available on the Ontario Ministry of Revenue website at Retail Sales Tax Information Notice.

If you have any questions, please contact your Group Benefits representative.