You are required to repay ALL of the taxes
May 3rd, 2010 by Questions
I filed a CP in summer 09; earlier in Feburary 09 I withdrew 13,000 RRSP. I did my 2009 return and now owe $1700 to CRA. We had only listed $400 as CRA debt on my CP – the trustee said I would owe money for 2009 tax year and she was right just off by $1300!
My question is do I have to pay the $1700 owing? I thought you can`t escape paying taxes, so not sure why my trustee would suggest I only pay some. I don`t want to get in trouble with CRA! Thanks.
Posted from: Ontario
One Response to “You are required to repay ALL of the taxes”
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May 04, 2010 at 7:27 am, A licensed trustee said:
You REALLY should be asking your trustee this question… I think you may have misunderstood some of what they have told you. You are required to repay ALL of the taxes for 2009, not just the $400.
For the other people reading this blog, when you file a consumer proposal unless you specifically include a clause that adds the current year taxes to the proposal they will be excluded. So, as is the case with this person, they filed in the summer of 2009 and when they filed their 2009 taxes they owed money – this is a debt acquired AFTER the proposal and therefore must be paid in full.