SISIP/RETRO/TAX/SLIPS

Well let's hope you receive it this Week.

Still waiting for my T1198. That's it for me. Our situation and numbers are almost identical....should be interesting...
Have a good evening.
Sapper

Sapper, did you receive your T1198 yet ? if not is that all that's left for you to do up your taxes ?

CRA is not re-doing the taxes. No deductions, dtc, rrsp's etc. Simply pay the tax based on the income allocated for that year. If a person gets the equivalent of $35000 per year in back pay, taxes are based on that amount only. No other deductions are allowed. It stinks but CRA cannot forensically open taxes from the past. Your friend should be ok as it should be taxed at around the 15-16% per annum.
Sap

All applies as if it were done in the year it was received , that is what the T1198 is for.

I have a question? What if all those years your only income was cppd and the person had dtc and spousal deduction. His income was no more than 10000 dollars per year. All those deductions those years didn't matter because he never made enough. Fast forward this guy is now zero sum and gets cppd plus ltd of 35000 a year. His retro was 350000 dollars over 10 years. When he does his taxes with the form 1198 should he owe anything since if he had received it in those years he would have paid no taxes. He's at my legion but I could answer him about those deductions if they are still good

The tax man owes me.   

I'm still waiting or my form 1198. Actually I found out the sisip ltd has to send CRA a copy also. That also applies to all the t4 slips. So if you don't get it by the deadline you should still file your taxes with a note.

You are all very welcome, I hope some minds are more at ease, and remember it's not the end of the world, we must all pay our fair share of taxes.
Just no way around it.

Thanks again Trooper. Have a great day. I have hope.
Sapper

Very good info THANKS TROOPER

Yes teen, the reason I gave that $200 tip, was because at least now our members will not be taken advantage of, when paying someone to complete their return.

I do believe that having access to the T1198 is confusing some with respect to penalties.
Once you have completed and filed your taxes, you are done, no penalties were charged to you.

The T1198 is just a bonus form, with it, you have a chance to benefit from it, or not benefit from it, there's no more to it than that.
Without it you have no chance of benefiting from it.

Bottom line don't look at this form as some sort of penalty, look at it as some form of hope.

I was told today that the T1198 was designed to give individuals a chance to recoup some of the taxes paid for having to claim it all in one year.
Even though I was charged regular tax today, if I was to have received my retro in those past years, my tax rate for any one of those years may turn out to benefit me, resulting in a refund. So I am thankful that I had access to it today to attach it to my return, and I am grateful to SISIP , for filling it out, and sending it to me.

Thanks Trooper for your post. I would be"over the moon" if your account/tax preparer is correct. It leads me to wonder though...why the T1198 comes in to play here? The idea of the T1198 is to tax us as if we had received this income in the past. It will be done by the CRA after we file our taxes. So I guess you have included all income in 2013 to proceed. Now you wait for CRA to finish evaluating the T1198? Sorry to beat this to death but....it does state that the CRA looks at your T1198 after you file. That's when the potential savings/damage can be had.
Sap