November 4, 2022
The federal government’s Fall Economic Statement 2022 announced that in the coming weeks an estimated 11 million low- and modest-income people and families will receive an additional Goods and Services Tax (GST) Credit payment. This payment, equivalent to doubling the GST Credit for six months, is intended to support those most affected by inflation. As such, LITs are encouraged to return this amount to debtors despite a possible entitlement to apply it against LIT fees in accordance with Rule 59 and OSB’s guidance on GST/HST credit payments in bankruptcy. As all GST credits are exempt property, they should not be included in the debtors income for the purpose of surplus income calculations.