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Anne mails out a monthly email newsletter
"Money Ideas" and a quarterly newsletter. If you would like to subscribe
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A Sample Excerpt of a Newsletter follows below:
The Canada Revenue Agency (formerly the Canada Customs and Revenue Agency)
has a toll-free telephone line where officials answer questions. They're good
on routine enquiries, but get your own professional advice on more complex issues.
That's the lesson from a 2002 tax ruling.
A injury prevented Newfoundland schoolteacher
Gary Moulton from working for 16 months in 1997-98. His pension plan needed
$4,323 for that period to maintain his status. The contributions were due six
months after he resumed work, but he wanted to start early.
In September 1998, Mr. Moulton phoned the
tax department, said he was on tax-free disability, and asked if he could make
a tax-deductible pension payment that year but claim it in 1999 when he would
have taxable income.
He was told he could. So he paid $2,470.
He called again before filing his 1999 return and got the same reply from another
official.
Later the CCRA rejected the deduction and
demanded $1,200 in back tax. So Mr. Moulton went to court.
The judge said it may seem "a little
shocking" to taxpayers who expect officials to know their stuff, but enquiries
officers are "not infallible" and Ottawa isn't responsible for what
they say.
Ultimately, Mr Moulton paid the price.
He wound up owing tax that could have been avoided simply by delaying his payment
for four months.
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