Ken

June 13th, 2013 by Questions

I have over 10 years of unfiled taxes. I know that I will owe well over $250k. I am meeting a trustee next week, but I have a question that’s keeping me up at night.

Can I declare before knowing the exact amount I owe? If I make a reasonable estimate and then file my returns.

I want to prevent garnishment that may happen in the time I’m filing taxes and then declaring.

I appreciate any comments.

Posted from: British Columbia

Questions

One Response to “Ken”



, A licensed trustee said:

The law does not require you to have exact figure before you file, but I suspect whichever trustee you see will ask you to file your taxes BEFORE they’ll let you file for bankruptcy. We have found in cases like yours, if we don’t ask you to file the taxes first you may not file them ever and then you won’t be discharged from your bankruptcy…

Discuss this with your trustee when you meet with them.

As an added bit of bad news, if your tax debt exceeds $200,000 and represents more than 75% of your debt, in order to be discharged from bankruptcy, you will have to appear in Court and explain whey you didn’t file ever year and pay. In Ontario, people are typically Ordered by the Court to repay 10-30% of their tax debt if they don’t have a valid reason for not filing every year. I don’t know what the practice in BC is – something else to discuss BEFORE you file.

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