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Bankruptcy Canada online support group helps you connect with other people who have or are experiencing bankruptcy.
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Bankruptcy Canada Online Support Group
Consumer Proposals
Welcome to the Consumer Proposals category of the Support Group. Don't want to file bankruptcy? A
consumer proposal
is an alternative. This is the place for discussions about Consumer Proposals.
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Discussion: Will the Trustee require us to file our 2010 tax returns before proceeding? (Read 448 times)
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Will the Trustee require us to file our 2010 tax returns before proceeding?
« on: November 16, 2011, 06:58:58 PM »
internalaudit
Jr. Member
Posts: 56
Will we have to be up-to-date with our CRA tax filings before we can file for a Consumer Proposal or can we leave the CRA out for now if filing a CP is time-sensitive (i.e. the sooner the better for various reasons)?
We haven't filed our 2010 tax returns but will either get a small refund or owe at most $2,000-3,000 each.
Thank you.
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Re: Will the Trustee require us to file our 2010 tax returns before proceeding?
« Reply #1 on: November 17, 2011, 12:10:02 AM »
tipler
Jr. Member
Posts: 53
Went I went with my proposal one of the first questions was " for which year did you file your last income tax" and then there were 3 sub questions: did you get a refund, are you owing , is there a copy available. I think that this might matter as if you were getting a "big refund" it would be not fair to creditors since its an asset in hiding. On the other hand if you owed a lot than tax men becomes a creditor as well. I myself try never to mess with the tax man.
In my opinion it would be best to run a tax program and see where you stand. You can run the program without filing your taxes and than still ask your trustee what to do. If you can afford it than future shop and best buy still might have 2010 in stock otherwise you can get it from the website.
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Re: Will the Trustee require us to file our 2010 tax returns before proceeding?
« Reply #2 on: November 17, 2011, 09:11:54 AM »
internalaudit
Jr. Member
Posts: 56
Thanks as always Tipler. Your thoughts and sharing of experience is very much appreciated.
I really have to file these tax returns but as there is the self-employment component, I've put it in the back burner for months. Not entirely procrastinating but wish I had done the filing sooner.
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Re: Will the Trustee require us to file our 2010 tax returns before proceeding?
« Reply #3 on: December 10, 2011, 04:38:25 AM »
Pot_of_Gold
Newbie
Posts: 7
I am kind of facing an issue around taxes. I have some outstanding corporation tax returns that the trustee suggested I ought to do before I declare bankruptcy. So as I work on that, in the meantime my 2011 taxes will be ready to be done.
I still have carry-forwards which the trustee informed me are erased with the bankruptcy. I also have the RRSP contribution taxes to pay. Since I've been on disability last year, this is a good year to add it to my tax return. I think I will come out pretty even, no return, no tax due.
But the trustee will only add the Minimum RRSP to my income to increase my return (it also keeps my income low so my HST returns and Child tax returns become higher... this will put me into the 21 month bankrupcy with surplus.)
I am going to have my personal return audited and submitted by a CGA this year so that it is accurate. I am wondering if they can come back and say it was unfair me to do increase my income, to reduce the income in the future year?
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