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Debra, Lawyer
Category: Canada Law
Satisfied Customers: 101435
Experience:  Lawyer
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I'm being sued by a Trust company in Calgary that handled my

Customer Question

I'm being sued by a Trust company in Calgary that handled my locked in RRSP many years ago. My investment person in Toronto dealt with them and the lawyer (from BC) that was dealing with everyone's investments took off with all the money. Revenue Canada went after everybody for the taxes but a week before they were taking me to court (in Winnipeg) I called a call saying they were dropping the suit and wiping out the debt. The Trust company said they paid Revenue Canada on everyone's behalf so we now owe them the money but I sent them the paperwork from the court saying that Revenue Canada said I didn't owe them anything. After 2 years of not hearing from them, I recently received paperwork saying I was being sued and had to respond in 1 month. I'm not sure what to do or if I actually owe them anything. I'm not in a position to afford a lawyer right now so am hoping you can help me. Do I have to pay them, and if so, once Revenue Canada has finished their assessment, would I get it back? (If I'm still alive!) Can you please tell me if I'm legally obligated to pay them? Thank you, *****: Since estate law varies from place to place, can you tell me what state this is in?
Customer: I am in Manitoba Canada and the Trust Company is in Calgary, Alberta, CDA
JA: Have you talked to a lawyer yet?
Customer: Many years ago a few of us gathered at a lawyer's and he said my situation was different as I never received any funds from my investment, but I haven't spoken to any recently - I'm not able financially at the moment.
JA: Anything else you want the lawyer to know before I connect you?
Customer: I think all I need to know is - do I have to pay the Trust company the money the paid Rev Cda on my behalf - even though I don't owe Rev Cda anything. Thanks
Submitted: 1 month ago.
Category: Canada Law
Expert:  Debra replied 1 month ago.

Hello! My name is Debra (formerly known as Legal Ease). Thank you for your question. I'm reviewing it now, and will post back again shortly.

Expert:  Debra replied 1 month ago.

So you did receive the fund and this is all about what you may owe the CRA is that it?

Customer: replied 1 month ago.
No I never got anything - my locked in RRSP (pension funds from 2 businesses I worked at) was stolen by the lawyer handling the investments. Revenue Canada wiped out the amount they said I owed them, but the Trust Company that held the RRSP's paid Revenue Canada on behalf of all their clients and now are suing me for that amount. If I don't owe Rev Cda - do I have to pay the Trust Company?
Customer: replied 1 month ago.
Would rather not pay for call thanks - money is very tight right now!
Customer: replied 1 month ago.
Hi Debra, will you be getting back to me via e-mail?
Expert:  Debra replied 1 month ago.

No you don't. If the CRA says you never owed this money and they wrote off any tax owing then the Trust company did not pay the CRA for you.

So that is what you put in your defence.

You tell the facts and state that because you never got the funds the CRA agreed to write off your tax debt related to the LIRA and while the Trust Company seems to think they paid the CRA for you they did not.

Does that help?

Please feel free to post back with any follow-up questions you may have. If you don't have any then I hope I have earned a 5 star rating but if you don't feel that I have please don't hesitate to reply back and let me know what more I can do to assist you. Finally, please know that even after you rate me I will be here for you and you can ask follow-up questions if you think of them later on at no further charge of course.