Can a trustee refile income tax returns?

January 22nd, 2015 by Questions

My husband received a lump-sum settlement from CPPD in 2014, years after we applied (multiple hearings, appeals, etc). The payment goes back to 2009 when they determined him eligible. We both went bankrupt in 2010, mine was dismissed in Sept that year, his in 2012 as a second bankruptcy.
In addition, he qualified for the DTC (Disability Tax Credit amount/$7000+) and they backdated that to 2008, it is under my taxes to claim it on his behalf, as I was working at the time paying income tax and he was not being on WCB.
My question – is our trustee able to go back and refile our taxes for us for the years they filed them (2009/2010 for me, 2009-2012 for him)? I asked Revenue Canada about refiling (they will do this if you request the service and provide income documents) but they said the trustee would have to apply the credits and re-file for our bankruptcy years.
What implications are there – will this affect any overage penalty we were paying monthly at the time, will it extend my bankruptcy from the 9-month auto discharge to something longer? Any other pitfalls?
THank you!

Posted from: Nova Scotia

Questions

One Response to “Can a trustee refile income tax returns?”


January 22, 2015 at 10:15 am, Jillian Taylor-Mancusi, Trustee | B.A. | C.I.R.P said:

The trustee could go back and refile the income tax returns. The trustee would be entitled to claim any deductions or credits that would be applicable for those tax years. Any refunds would be an asset of the respective estates. Notwithstanding that your husband was eligible for the Disability Tax Credit, you have stated that your husband did not have any taxable income and therefore it can be claimed by your estate on the income tax return. Any potential refund belongs to your bankruptcy estate. Any refund from the Disability Tax Credit, that is received by the trustee will not affect your ability to pay under Directive 11R of the Bankruptcy and Insolvency Act, and should not have any bearing on how long you were in bankruptcy.

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