Income Tax Rebate
How far back can a trustee claim and income tax rebate?
I received a rebate of $22,000 on my 2011 income tax return due to some businesses losses in that year. I received the money in March 2012 and used it for normal living expenses and since July I am only working 2 days a month and receiving $1,400 CPP and OAS. None of the rebate is left. Can the trustee claim it back?
Posted from: Ontario
IF you received the income tax refund before you filed for bankruptcy then your trustee will ask you to provide a detailed accounting of what you did with the money. If you have done something inappropriate you may be required to make additional payments into your bankruptcy.
If you had already filed for bankruptcy and somehow received the refund then you will be required to pay an amount equal to the refund you received in to your bankruptcy for the benefit of your creditors.
This is obviously something to discuss with your trustee.