Submitting receipts later
I am going to be declaring bankruptcy. It is my understanding that the bankruptcy will take all refunds I have owing on my past 5 years of unsubmitted and unrefunded taxes. I am on disability and money is very tight. When things were a bit better I had private health insurance. It used to be a significant portion of my refund. I am wondering if when I give in my income tax info to the bankruptcy people if I were to leave out the insurance receipts, whether I could go back and claim those at a time when I could legally have the refund that would be the result of those receipts. I realize this may not be ethical to hold back the receipts but is it illegal? I am, after all submitting them, just later. I believe one can go back and submit to Revenue Canada things “missed” in past income taxes?
Posted from: Ontario
Your “plan” won’t get you anything – no matter when you file the extra deductions, any refund created for returns for the year of your bankurptcy and every prior year will be sent to your trustee.
Let’s say you decide to try this anyway – when the refunds are sent to your trustee the trustee will be obliged to re-open your file and has the right to apply to the Court to have your discharge revoked. Now you’ve lost the money, plus all of your debts are resurrected. To add to your misery, the Court will likley charge you with an Offence under the Bankurptcy Act resulting in a fine.