CRA Sitting on $25.4M of Unclaimed Tax Refunds :CRA SOTW
Alan Baggett
Canada sitting on $25.4M pile of unclaimed tax refunds
Tim Shufelt, The Ottawa Citizen
Published: Monday, June 09, 2008
Despite its best efforts to throw around millions in tax money, the
federal government just can't seem to give it away.
Tax specialists at the Canada Revenue Agency are trying to distribute
millions of dollars rightly belonging to Canadian taxpayers, with
mixed success.
Over the past 12 years, more than $25.4 million in undeliverable tax
returns has piled up in a government bank account. Almost 40,000
cheques, averaging $657 each, have yet to find their way back to their
rightful owners.
Most commonly, tax money cannot be delivered when a person files their
return, moves and forgets to provide the government with a new
address.
"If you're moving, when you already have so many things you're
thinking about, you have to remember to update your information with
the CRA," said agency spokeswoman Catherine Jolicoeur.
Others fail to plan for their estates properly before they die. Still
others simply forget to cash their cheques, Ms. Jolicoeur said. "If
you finally find it in your drawer, and say, 'Oops, I didn't cash
this,' you can cash it two years later, you can cash it five years
later, it's not staledated."
Similarly, it's never too late for Canadians estranged from their tax
refunds to arrange a reunion with their long-lost money, Ms. Jolicoeur
said.
As long as they can identify themselves, individuals owed refunds can
request a reissued cheque from the agency. Otherwise, the money may
remain forever in a government-run orphanage for abandoned money -- a
consolidated revenue account.
But the agency is not waiting for people to come forward to claim
their money, she said. Once a cheque is returned to sender, one of the
dozens of tax centres located across the country is tasked with
keeping track of an individual's address changes.
However, privacy laws prevent the government from sharing change of
address information across departments, Ms. Jolicoeur said.
Over time, however, the agency is able to whittle down the number of
undeliverable cheques for each given year. For 2007, which still
remains an open tax year, 11,112 refunds totalling $8.2 million remain
to be sent out.
For the 1996 tax year, however, 1,001 cheques remain unclaimed,
totalling $529,156.
The agency's efforts are less and less successful the longer the money
sits in a bank account. In more than nine years of trying to
distribute about 2,800 undeliverable tax cheques worth almost $1.2
million from 1997, for example, half of that money is still unclaimed.
© The Ottawa Citizen 2008
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Alan Baggett – Tax Collector’s Bible
Canuck57
> CRA Sitting on $25.4M of Unclaimed Tax Refunds :CRA SOTW
>
> Canada sitting on $25.4M pile of unclaimed tax refunds
> Tim Shufelt, The Ottawa Citizen
> Published: Monday, June 09, 2008
>
> Despite its best efforts to throw around millions in tax money, the
> federal government just can't seem to give it away.
Can't be trying too hard.
> Tax specialists at the Canada Revenue Agency are trying to distribute
> millions of dollars rightly belonging to Canadian taxpayers, with
> mixed success.
Specialists? My ass, I get my advice from my tax accountant. Mor ethan
once they have given me bad advice that culd have cost me thousands if I
didn't question it.
> Over the past 12 years, more than $25.4 million in undeliverable tax
> returns has piled up in a government bank account. Almost 40,000
> cheques, averaging $657 each, have yet to find their way back to their
> rightful owners.
I smell a fish. Could this be a scam to get tax evaders that are misled
into giving up where they are to see if the government owes them money
but in fact the government wonders why they haven't declared income for
so long?
> Most commonly, tax money cannot be delivered when a person files their
> return, moves and forgets to provide the government with a new
> address.
Doubtful. Employers submit taxes into your account to the government.
If you work for a company, they know where you are. Supports my theory
on that they are looking for people who opt out of paying taxes.
> "If you're moving, when you already have so many things you're
> thinking about, you have to remember to update your information with
> the CRA," said agency spokeswoman Catherine Jolicoeur.
People don't forget $657.
> Others fail to plan for their estates properly before they die. Still
> others simply forget to cash their cheques, Ms. Jolicoeur said. "If
> you finally find it in your drawer, and say, 'Oops, I didn't cash
> this,' you can cash it two years later, you can cash it five years
> later, it's not staledated."
>
> Similarly, it's never too late for Canadians estranged from their tax
> refunds to arrange a reunion with their long-lost money, Ms. Jolicoeur
> said.
Yep, 9/10 the government is looking to collect, not to give.
> As long as they can identify themselves, individuals owed refunds can
> request a reissued cheque from the agency. Otherwise, the money may
> remain forever in a government-run orphanage for abandoned money -- a
> consolidated revenue account.
And get a visit.
> But the agency is not waiting for people to come forward to claim
> their money, she said. Once a cheque is returned to sender, one of the
> dozens of tax centres located across the country is tasked with
> keeping track of an individual's address changes.
>
> However, privacy laws prevent the government from sharing change of
> address information across departments, Ms. Jolicoeur said.
Give me a break. Government make work project.
> Over time, however, the agency is able to whittle down the number of
> undeliverable cheques for each given year. For 2007, which still
> remains an open tax year, 11,112 refunds totalling $8.2 million remain
> to be sent out.
Why not print names and the last known address? Maybe they don't want
the government to find them. You know, the crooks.
> For the 1996 tax year, however, 1,001 cheques remain unclaimed,
> totalling $529,156.
CCRA collects what? $220 billion in 2007? Small change.
> The agency's efforts are less and less successful the longer the money
> sits in a bank account. In more than nine years of trying to
> distribute about 2,800 undeliverable tax cheques worth almost $1.2
> million from 1997, for example, half of that money is still unclaimed.
Maybe left the country? Murdered? Fraudsters moving on before they get
caught?
Sharx35
"Alan Baggett" <AlanB...@volcanomail.com> wrote in message
news:ba9d8776-6250-423a...@z7g2000vbl.googlegroups.com...
>
> -----------------------------------------------------------------------------------------------------
> Miss a Tax Tale Miss a lot!
> Pop the link below into your browser to view the entire CRA SOTW
> Library!
> http://canada.revenue.agency.angelfire.com
> -------------------------------------------------------------------------------------------------------
How can anyone be so dense as to "forget" to cash a $600 dollar cheque?
parrisb...@yahoo.ca
>
> How can anyone be so dense as to "forget" to cash a $600 dollar cheque?
I've see it happen and not with a $600 cheque. I know of one person
holding a $6,000 cheque waiting for the statue of limitations to
expire so they get the money and the government can not change their
mind.
Sharx35
<parrisb...@yahoo.ca> wrote in message
news:593b448b-730a-4f13...@v25g2000yqk.googlegroups.com...
Well, I have a surprise for them. If the CRA suspects fraud, there is NO
limit as to how far back they go.
Canuck57
Sounds like they are poorly informed. Canada does not have a statute of
limitations, OK, if you die then the limit is up. What happens more
often than not is they give up looking.
There is a hole in that for really minor stuff, they have 6 months to
charge you. But they can prosecute you 20 years later if they catch you
then.
But I suspect you could be a rapist, pedofile or murder you would get
your cheque. But if you really owed CCRA money.....
parrisb...@yahoo.ca
Canada has a statue of limitations for tax returns and amounts on the
tax returns. You may also wish to check your acronyms - CCRA is now
CRA - Customs is a different branch.
For CPP, there is a limitation of 3 years. Certain other aspects of
the tax return are limited to six years. Under Fairness, certain other
aspects may be extended to ten years, including with the Minister's
permission. Excess of ten years is not permitted under the ITA for
reassessments - That would be ten years after last reassessment.
Collections of tax debts fall under a different act which only allow
collection within six years after the debt incurred or after the last
collection effort, whichever is later. (The courts ruled recently that
the CRA's collection agents are not granted a special exemption for
collection efforts under the ITA.)
Now, the US rules are different - they do not have a statue of
limitations for tax debt collection efforts.
Canuck57
Since I don't do fraud, I don't have to worry in any case. But if I was
a betting person, I woud put my money on Sharx35 first. No limitations
for fraud and CRA or whatever they call themselves these days.
Sharx35
"Canuck57" <Canu...@nospam.com> wrote in message
news:8uiUm.42859$cX4....@newsfe10.iad...
Many of his comments referred to how far back THE TAXPAYER could go, vis a
vis, amending returns, usually for the purpose of getting refunds
or qualifying for retro GST credits, whatever. Normally it's 3 years but
under Fairness which is now called something else, the taxpayer can go back
ten years, e.g. 1999 tax year is still open for most amendments until April
30, 2010, 2000 year is open until April 30, 2011, etc etc..
Anything that the CRA considers to be "retroactive tax planning" may well be
disallowed, i.e. changing capital cost allowance deductions.
Alan Baggett
>
> - Show quoted text -
Are you certain about the six year rule?
It is my understanding that the six year limitation was over ruled
when parliament amended section 222 of the Income Tax Act (to provide
for a ten year limitation period).
As well, the ten year limitation period is extendable if the CRA was
not permitted to take action because of the BIA, CCAA or FDMA.
Canuck57
Or fraud. If they could prove you screwed them 20 years ago... they
could go after you today.
Sharx35
Precisely.