clairemarie70

hi all....me and my partner are working in canada on twp...i am pooping my self over the tax..it is down to us to sort out his tax..unfortunatley we have got caught up with buying a house and the problems that came with it and so have put nothing away for his tax this year...what happens when we file his tax and we dont have the money right up front to pay it?? this wont happen next year..that is for sure..any advice id really appreciate

Auld Yin

Have you any idea how much income tax will be owed as of the end of this month? It is not due to be paid until April 30th. so any payments you can make before that would help. If you won't have the full amount I suggest you contact Revenue Canada and explain the situation. You will be charged interest on the unpaid amount but they will work out a repayment schedule for you. Don't poop yourself so much. It's not the end of the world. Many people get into arrears with the taxman.

woodworm

Maybe you want to check the following website , there seem to be some phone numbers where you can contact them to make payment arrangements with them. If you don't do that , it doesn't sound like they are going to be very friendly ....

quote from the Canada Revenue website http://www.cra-arc.gc.ca/tx/ndvdls/t.../rrrs-eng.html (this obviously is the 2008 procedure, but I assume it will be the same next year)


".... If you cannot pay your balance owing on or before April 30, 2008, we will accept a payment arrangement only after you have reasonably tried to obtain the necessary funds by borrowing or re arranging your financial affairs. .....
We will still charge daily compound interest at the applicable prescribed rates on any outstanding balance until you pay it in full.

Your failure to proceed with timely action to resolve your tax arrears can lead to serious measures by CRA including legal action such as garnisheeing your income or your bank account, or initiating other legal action such as seizing and selling your assets.... "

ann m

Working for your employer under a TWP - have they not taken any tax from you at all? Is this a usual occurence? I've not heard of this before.

I ticked a form last year asking my employer not to take any tax off as I was going to earn under the tax threshold of nine thousand and something ....

I know everyone is responsible for their own tax returns here but would most salaried positions not have tax taken off at source?

AmyDavid

It should work out the other way - the employer takes it from you, you send in a return and then get a nice cheque back from the tax people. Have a look at one of his pay slips and see what he pays out. It should be listed on there.

montreal mike

exactly

Clairemarie, one won't end up in 'debtors prison'

The tax guys are realistic. They prefer to collect over a long period of time than not collect at all.

It is really no big deal.

Your other problems must take priority.

montreal mike

the assumption is always you go see them as opposed to them chasing you

Novocastrian

If you're on TWP tax has been deducted by the employer. What's with the poop?

Bellanova

Sorry to barge in on this post, but it's got me thinking. My OH is also on a TWP and we just presumed that the employer takes care of all the neccesary tax, we looked at his payslip and he has GOVT PEN and FEDL TAX deducted which I presume is the norm (government pension and federal tax) Are we right in thinking that this is right or are we going to get a shock at the end of the tax year?? and it didn't seem that much that has been taken?? Do we have to do anything else or is has this all just been taken care of, sorry to be a pain just got a little concerned! Thanks
Bella

Novocastrian

No need for concern. You'll have to file a tax return before April 30th next year (use Quicktax or something similar). It sounds like this is your first time so you'll have to print it and mail it rather than do the whole thing on-line, but you'll likely get a rebate, not a bill in that case (first year, depending on when you arrived).

Bellanova

Oh ok, hopefully it will become clearer than mud soon enough!! OH is going to have a word with work and hopefully they too can point us in the right direction too thanks for you time
Bella

J-A-UK

Just our thoughts...... We just go down to HR Block and let them sort it! I go in with a few relevant bits of paper, income, receipts, pay stubbs and say "sort this out".

I spend about 20 minutes with them while they check things out, they fill out the forms, I sign it and a while down the road I get a cheque for $400. How good is that??

Clearly if there is tax to pay it'll be a diffent story - But I'd recommend anyone to go to somewhere like HR Block. Not sure if they are Canada wide, but they are certainly all around us here in Manitoba.

They charged us $80 last year, well worth it to me!