April 30th, 2010 by Questions
I am currently in bankruptcy process where I obtain surplus income each month and pay the trustee accordingly.
In a tax refund, this would normally be considered addtional monies that I should have received as surplus. Therefore, why would I have to give 100% of the refund when this would have been considered surplus income and I would have to pay a percentage thereof. I pay additional taxes each pay cheque as a buffer.
For example: If I pay $50 per month in addtional taxes this would reflect in my net pay and and reduces my surplus by $50 or $600 a year. If I did not pay that additional tax then I would hypothetically pay $300 out of that $600 of surplus income. But since I don`t, I now have to pay 100% because it was returned to me from CRA. I don`t understand the logistics.
Hypothetically, the more you pay in income tax whether it`s your employer taking too much or you putting addtional monies in, you get burned for 100% of the additional monies.
Posted from: Ontario