Canada PRO Bank Payment Just Landed in My Account – What is It?

June 11th, 2010

What is Canada PRO and why did I get a bank deposit from he/she/it?

(Editor’s update: This post about getting a Canada Pro Bank Payment was written a few years back, but it still valid. The Canadian federal government still direct deposits some federal tax credits directly to your bank account and identifies itself as Canada Pro.)

Many Ontario residents will receive a “mystery” bank payment directly into their bank accounts in mid-December 2010. (And you might remember a similar one that landed earlier this year on Thursday, June 10, 2010.)  The mystery payment of $100 or  up to $330 for families is usually labelled “Canada PRO”. What the heck is it?

Canada Pro

Canada Pro

What exactly is this Canada PRO cash?

It the second instalment of your HST rebate from the Ontario Government.

Back in June, 2010,  TD Canada Trust bank fielded dozens of calls that day from concerned customers wondering what the payment was for. The Bank confirmed that the provincial government was the source of the mystery Canada PRO payment to customers.

Transition Benefit to Offset 13% HST

As promised by the McGuinty government, these “transition benefit” payments are designed to offset the new 13 per cent harmonized sales tax  – or HST – that took effect July 1, 2010. The new tax will increase levies on one in six consumer items, including gasoline, electricity, home heating fuels, tobacco, and legal services.

The Ontario government estimates that 51 per cent of Ontario families will be paying up to $480 more in taxes by 2012 because of the HST, according to a  Toronto Star report on Wednesday, June 9, 2010,

Next Instalment of Canada PRO – June 2011

These transitional payments are designed to take away some of the pain for eligible residents.

  • The next round of payments will arrive in June 2011.

So now you know!

Since we’re talking money, perhaps you should learn more about Tax-Free Savings Accounts?