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Income Tax Refund

I filed for personal bankruptcy in April/2007 and have yet to be discharged. I have filed a post bankruptcy tax return in 2007 and also for 2008. CRA has issued GST credit cheques to the trustee since Jan/2008, which I understand is normal. However, my income tax assessment notice for 2007 showed a refund of $333.00 and for 2008 the assessment notice indicated a refund of $1,602.00, but also indicated that it was being held. Apparently CRA is still showing that I owe approx. $6,500 in GST payments but this amount was included in the bankruptcy filing and should therefore be negated. I cannot get any response from CRA or GST regarding this matter for the last 13 months. My question is whether these refunds are payable to me, if I somehow get the GST matter resolved to show that I do not owe this money. I am assuming that since they forwarded the GST rebate cheques to the trustee and not the Income Tax Refunds then the refunds are payable to me as they were generated post-bankruptcy. br />
Posted from: Ontario

One Response to “Income Tax Refund”

A licensed trustee said...

I suspect CRA is holding your refunds because you have not been discharged. Normally a first time bankruptcy runs 9 months – you’ve been in bankruptcy for over two years which suggests something is not quite right. I suggest yiu can your trustee to discuss your options, but I doubt CRA will release the funds until your bankruptcy has been completed.