Can I keep my income tax refunds?
I am going to be declaring bankruptcy. I have not filed an income tax in 6 or 7 years. I have never made enough to owe them money, and have always received a refund. My bankruptcy company said they will do my past income taxes. Other than to pay for the actual cost of the bankruptcy am I entitled to the refunds from my past and present income tax or must it go into the bankruptcy?
Posted from: Ontario
When you file for bankruptcy you automatically lose your tax refunds for the year of bankruptcy and any previous years. This is regardless of who files the returns. This is very clear in the legislation and there are no exceptions to this requirement regardless of trustee, province etc..