Legal Fees (Assorted Topics)

teen you know I feel as strongly about this tax issue as I do freedom of speech.

all you just asked for I have done many times over and will do now and happily continue to do so I miss no one.

EVERYONE

complete a request for tax payer relief form found on the CRA website the address to send it in should be right on the form.

complete a t1198 found on the CRA website and send it in with your tax return.

propat

nav you are a long timer so yes you will.

propat

Thanks for answering my question propat. But I gotta back up Navrat here....talk to us like we are 6 years old.

Posting tax laws is like one huge word I can't find in the dictionary. So if you and trooper could break it down to the following in plain english it would be beneficial...

1. form (s) to fill out
2. what to ask the accountant or tax company we go to
3. who do we send the request to

I know we are all responsible to doing our own taxes but this is a very good time to share info...in English not copy and paste tax laws most of us don't understand.

Thanks guys you are both doing a great service to all on CSAT and those vets who visit CSAT.

what is the special calculation they use?

ie-- x+y=z

propat

propat, the calculation is just what I said, the CRA  calculating your retro for previous years to see if those tax years are lower, and would be of benefit to your original tax return. Therefor which may result in a refund, regardless if you did or did not receive a refund with your original tax return.

Please English someone, talk to me like I am a six year old child, do I pay extra tax if they spread it out over the years?

trooper the calculation itself. what is it?

propat

propat, to answer the question regarding SPECIAL CALCULATIONS.

A special tax calculation is available to individuals who receive QRLSPs that relate to any year after 1977.
The calculation applies if the total of all principal amounts that relate to prior years (after 1977) from all QRLSPs is $3,000 or more.

f you are the
recipient
of a QRLSP and if the amount shown under "Total principal (prior years only)" is
$3,000 or more, attach Form T1198,
Statement of Qualifying Retroactive Lump-Sum Payment
to your
return for the year of payment to ask for a special tax calculation. If you have more than one QRLSP form,
add the amounts shown under "Total principal (prior years only)" on all your forms. If the result is $3,000 or
more, attach to your return the QRLSP forms that payers have given you

So what they are referring  to here is the special  calculation done by the CRA, to see if taxing your retro for your previous years, turns out to be beneficial to you, or not. Remember that not all tax years are equal, with respect to tax rates for a particular year, the rates change from time to time, that is where this special calculation comes into play.

yes trooper I posted that earlier however there is no guaranteed refund if you owe tax either way but you will owe less if taken over the past years the will inform you of this and they will need your permission to do this.

propat

good for you trooper now I do call it a penalty but cra will not they will call it notional tax ore deemed tax. if you take it in one year these do not apply if you ask to take these in past years these will apply in there special calculations with the exemption of the two tax years prior. now you have spent a lot of time discussing this with me witch is great as I love discussing with you as it never seems to turn into an argument. plus I enjoy the opportunity to post the actual current income tax act here for all to see so they will be prepared.

now don't get me wrong but I really think you should be asking one question above all else one from the t1198 form you keep referring to.

WHAT ARE THE SPECIAL CALCULATION?

once you get the answer to this question you will see exactly and clearly what I am talking about.

always question authority

propat

Another thing propat, the T1198 form is simply a way for individuals to see if they can benefit from having their year by year retro tax, re taxed, for those past years, instead of having all of the retro taxed for the year 2013, to see if would benefit us. If it turns out to be in our benefit, the CRA will than issue a refund. If it proves to not benefit us, our original filing will remain unchanged. Keep in mind that this form T1198 is their to provide those individuals, who received the retro, a method of reducing the impact of having to claim it all for 2013.

propat, You believe that we will be penalized on our retro from the tax man, that is what you believe, and I respect that, and I also think that discussing this matter now is a good thing, never to early to prepare ourselves. I am in the belief, that we won't be penalized on our retro. That is what I going to stick by, as that is the direct current information provided to me, at this time. Now what I will be doing within the next few Weeks, is to sit down with and accountant, and proceed to fill out the T1198 form, once completed, I will have the accountant verify with the CRA that in no way will we be penalized, with respect to our retro.

teen the actual acts ive posted are current and the one 120.31 is the current legislation that allows the minister to apply this interest proposed in 1999 in effect in 2000 and unchanged since. THESE ARE THE CURRANT LAWS OF THE LAND.

propat

[21] As proposed in the budget, the mechanism provided for a special "notional tax" calculation to be made by allocating the qualifying lump-sums retroactively to the years to which they relate and calculating the notional additional tax for those years. However, the notional tax was not just comprised of the tax that would have been payable in those years. It was also to include an interest amount to reflect the delay in payment of tax on the retroactive lump-sum payment. The Budget Plan had noted that governments incurred financing costs when they received tax revenues later than if the payment had been made earlier, when due.


[22] This interest component of the notional tax was to be calculated using the prescribed interest rates for tax refunds, i.e. the interest rate paid by the Minister when refunding tax to a taxpayer. Since October 1, 1989, the prescribed rate for refunds under the ITA has been calculated as the 90-day Treasury Bill rate plus two percent (Income Tax Regulations, C.R.C., c. 945, s. 4301). Since January 1, 1987, interest has been computed on a daily compounded basis (ss. 164 and 248(11) of the ITA).


[23] On September 10, 1999, the draft legislation amending the ITA that included the provisions relating to the QRLSP was tabled (Bill C-25). The provisions came into force on June 29, 2000 (ss. 110.2 and 120.31, the full texts of which I have attached to the present decision as Schedule 1). The provisions as enacted had no material differences from the proposals in the 1999 budget. The CRA had identified one obvious drafting error in how the calculation would be performed that was clearly inconsistent with the budget proposal. The CRA brought the error to the attention of the Finance Department, which in turn confirmed that the CRA's observation was correct. The CRA has consequently applied the provisions in the "corrected" fashion, although Parliament has yet to amend the provision to rectify the error.


[24] Ms. Jaekl testified that when the budget was first presented in Parliament in February 1999, she became aware of the proposed QRLSP mechanism, but did not learn about or inquire into any of its details. She knew from experience that merely because a proposal is announced in Parliament does not necessarily mean it will ultimately be passed into law. She understood, however, that if the mechanism was implemented, it had the potential to benefit pay equity recipients. She only acquired a more fulsome understanding of the QRLSP during a conference that she attended in Halifax on March 8, 2000, at which one of the speakers had provided a detailed explanation of how the mechanism would work. This conference took place over four months after the PSAC and the Treasury Board had negotiated the settlement of the Section 11 Complaints.


[25] No evidence was adduced indicating that Ms. Murphy or any representative of the PSAC had contacted the CRA prior to signing the pay equity settlement to obtain details about the QRLSP mechanism nor that anyone had contacted the Finance Department or other government representatives to request or lobby for any change in regard to how the mechanism would function.

propat.

thanks teen and they moastly never hered of such a thing however if you get transferred a few times to a high end supervisor they will only say they will use special calculations but in no way shape ore form will they tell you what these special calculations are.

propat