CRA Review of Your OSHPTG: How to Respond to a Property Tax Proof Letter

A CRA review letter about your Ontario Senior Homeowners' Property Tax Grant is alarming — especially when it says you might owe back the $500 you received. But a review isn't an audit finding. It's a request for documentation, and in most cases you can resolve it in one response.

Why the CRA Sends These Letters

The CRA regularly sends post-assessment information requests to verify property taxes claimed on Form ON-BEN. You don't need to have done anything wrong — reviews are routine and can be triggered randomly, by filing patterns, or by discrepancies in reported amounts.

The letter typically asks for proof that you owned the property, occupied it as your principal residence, and paid the property taxes you claimed on Line 61120.

What Documents to Send

Gather these for the tax year in question:

Proof of property taxes paid:

• Your final municipal property tax bill for the year (showing the total levy)
• A receipt or bank statement showing the payment was made in full
• If taxes were paid through a mortgage escrow, a statement from your lender showing the tax disbursement

Proof of ownership and occupancy:

• The property tax bill itself usually confirms ownership (it's addressed to you at the property)
• A utility bill in your name at the property address adds supporting evidence

Don't send originals — photocopy everything. Keep copies of what you send and note the date.

How to Respond

The letter specifies a response deadline. Respond by the date shown using the method the letter indicates:

By mail: Send copies of your documentation to the address on the letter, with the letter's reference number written on each page.

Through CRA My Account: Some review letters allow you to upload documents online through the "Submit documents" feature.

By fax: The letter may include a fax number for your Tax Centre.

If you need more time, call the number on the letter before the deadline and ask whether an extension is available. Continue to meet the original deadline unless the CRA confirms an extension.

If You Can't Find Your Records

Contact your municipal tax office and request a property tax account statement for the year in question. Most municipalities can produce these going back many years. The statement shows the annual levy and payment dates — exactly what the CRA needs.

If your bank paid through mortgage escrow, the lender's records serve as proof even if you don't have the original tax bill.

What Happens If You Don't Respond

If you miss the deadline and don't request an extension, the CRA will disallow the claimed credits and issue a Notice of Reassessment. You'll be required to repay the OSHPTG amount plus any related OEPTC adjustments. The repayment is typically offset against future tax refunds, GST/HST credits, or OTB payments — the CRA deducts it automatically.

Even after a reassessment, you can still respond with documentation. File a Notice of Objection within 90 days of the reassessment date to have the decision reviewed.

Preventing Future Review Issues

Keep property tax bills and payment records for six years from the date of your assessment — that's the CRA's statutory retention requirement. A simple folder organized by tax year eliminates the scramble when a review letter arrives.

If you use tax preparation software, save the completed ON-BEN form data each year (most software allows you to export or print the filed return).

The Ontario Property Tax Relief for Seniors guide includes a Property Tax Proof Log designed specifically for organizing CRA-ready documentation by year, along with a response checklist for review letters.

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