About 5 or 6 years ago ,I received a tax refund of more than normal as a result of making a charitable contribution. A friend suggested it to me ,and I guess I was pretty naive to go along with it. As time has passed CRA is now saying that ,with interest I am owing approximately $10,000 .I think the refund was in the region of $3 to $4 thousand dollars.At this time the CRA is finally considering taking these so called charities to court.Therefore, even allowing for the fact that this may not be resolved for some time......would it be possible to offer the amount that was initially owed without having to find all the extra interest money ?
I have not tried anything. I am quite afraid to call CRA as I have heard they can be very intimidating.
On my notice of assessment this year ,it does say that, although I do not have to pay the $9,800 which is in dispute at this time ,interest charges will continue to accumulate at the prescribed rate.I can reduce or avoid interest charges by making a payment on my account. The CRA will pay interest on any amount refunded to me. Just what does all this mean?
They may agree to lower the interest and waive the penalties.
It would depend on the facts surrounding the donation etc.
I suggest that you retain a tax lawyer or accountant to try and do this negotiating for you.
It would make your chances increase greatly as these experts know how best to approach the CRA.
You can contact the Law Society and use their Lawyer Referral Service. You will be given the name of a lawyer and can consult with the lawyer and the first half hour will be free.
Can you give me any idea how much the cost of retaining a tax lawyer would be? Also if I was to ignore this in the hope that CRA was not successful in their court case ,would this always come back to haunt me? Or does your advice on retaining a lawyer the best solution.
You cannot ignore it.
They will withhold any tax refund and can seize money from your account and interest will keep running.
I don't know what a lawyer will cost but I suggest speaking to a few.
An accountant will be less expensive.
O.K. ,I guess you are right.I do know though ,they cannot hold any refunds .I have had 2 since this happened. However as you say ,it will not go away.Thanks for the advice.
Not that this has come up you will not get any more refunds unless they slip through.
But in any event dealing with it as fast as possible is clearly best
As this was the same question, I did not realise I was paying $39 twice. Is this correct ? I am not too happy about paying twice the amount on what is really the same question.
You don't pay twice.
This is all one chat.
You already paid.
i wI will get in touch with a lawyer as soon as possible. I don`t know any tax lawyers here ,so will call the law society.
You just have to click accept so that site pays me my portion.
But for sure this was just all part of the same question.
O.K. That`s a relief. Thanks for your help. I will never do anything as stupid as that again.