Tax on income earned prior to consumer proposal
January 8th, 2009 by Questions
I filed a consumer proposal in August 2008. I have recently learned that had my trustee filed a provisional income tax return for me to the Canada Revenue Agency, that my income prior to the proposal date will not be taxed. Is that correct?
Posted from: Ontario
One Response to “Tax on income earned prior to consumer proposal”
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January 09, 2009 at 10:09 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
That is not exactly correct, if a provisional return is filed the proposal can include any tax owing as up to the date of that proposal. However, the proposal will not prevent you from having to bay tax on your income, only clear you from any tax you had owing as of the date of filing.