SISIP/RETRO/TAX/SLIPS

Well I believe that the government does what they want within rules and regulations , if the CRA uses the T1198 and it works out that you owe more taxes calculated over several years than you do calculated in one year , I think that the CRA will only accept your income tax return for 2013 by calculating the taxes on your retroactive pay over years so that the government gets more money from you and not less. I want to know who has the right to accept the calculation in one year or over several years , the tax payer or the CRA , because I choose the way that gets me more money.

Two part,

requesting CRA to do up the T1198 on only the principle amount owed us in retro, in my case my T1198 is higher than what was paid, not including interest, and I cannot figure out how they came to the figures provided,

Secondly, in my understanding I felt that not being taxed at source was a penalty for the interest amount provided by SISIP, had it been taken at source like any source of investment income (as CRA views this payment) it wouldn' t have been such a hit now,

Having to pay an additional surtax in Ontario doesn't help either, for me almost $9K

 my legal fees were based on the full amount including interest and paid out before I received them on the total retro amount, not just the principle amount, so why not take the taxes off at source...

So far in completing my taxes, in my calculations I will be at 47% tax payable this year

puddleduk, correct the interest paid from our retro is not included in the T1198 calculations.
Sorry,
I do not understand this part of your question ,
Having not been taxed (and now penalized) on it on the first go out the gate, wouldn't CRA see this omission of the interest amount (as broken down in our SISIP Class Action Paid Claims Report) as provided when we were paid out?

The provided T1198E isn't my full amount including interest... Before taxes,

Even tried making it work adding on the legal fees if they were subtracted, the end result still doesn't come out to what was given as a starting figure before deductions.

Oh thanks trooper. Good work by the way and advice is always good to read.

Teen , you are correct they have a copy of everything, but if it comes out that you owe, you won't owe because they will not charge you.

Also I was told that even though they have the T1198, they will not do the calculations unless you ask them to, by submitting your T1198 along with your return, you are asking them to do just that.

Did my taxes, owe another $30K, (my paid out amount was <$170K, with ~$50K taken off at source)

a third of that amount I owe back is premium surtaxes from Ontario,

I noticed in my provided T1198E it doesn't include the interest as part of the amount for the total calculation of retroactive lump sum,

Having not been taxed (and now penalized) on it on the first go out the gate, wouldn't CRA see this omission of the interest amount (as broken down in our SISIP Class Action Paid Claims Report) as provided when we were paid out?

As CRA will calculate the QRSLP figures based on the provided information.

To my fellow CSAT members, from what I have posted today, it is in no way directed at any of you who are pushing for what you believe in, I have the utmost respect for all of my fellow members, and frankly was holding back for quite some time in posting what I have posted today.

However it is been brought to my attention as of late, that individuals were concerned about submitting the T1198.

As you know, I try to help out in any way I can, that is what caused me to make the decision of posting what I have posted today.

My apologies if I have offended anyone today, but my intention is strictly meant to help others here who are content planning not to submit there T1198.

I have to ask but even if you don't submit the t-1198 that you got from Manulife doesn't the CRA have a copy? Afterall every T slip for taxes is electronically sent to CRA.

So if their calculation comes up owing them they will get you in the end...won't they?

You know what firebird, you are not the only one who has those concerns, and I don't blame you one bit, for thinking that, all this talk of deemed tax and tax relief, is in my view the reason why some feel that way.

You can rest assure that in no way shape or form, will submitting the T1198 result in you paying any additional tax, or lesson the amount of refund that you got from your initial return.

My advice would be to submit it, without a doubt.

I am receiving a refund without the use of the T1198 and my concern is when CRA uses it , if there calculation is less than my calculation , that I will get the lesser amount or might even owe money.

My reason for stating that if you think the T1198 will do you harm, (DON'T SUBMIT IT) was intended to prove that it in no way will it do you harm.
There are some post here on CSAT, that are pushing the fact of DEEMED TAX , that reflect the T1198, and also RC4288 request for tax payer relief, which also speaks of this T1198.

Although I respect that, and it is all for good intention, some here are taking it in a different context, than what it is intended for, we have members who are in doubt about sending in their T1198.
This is where I have a problem, I am concerned that some may not submit their T1198 because of all this talk of DEEMED TAXES and what that they state will happened with submitting the T1198.

I think the best way to describe is as follows: There are no DEEMED TAXES AND OR PENALTIES when completing and submitting your 2013 tax return which includes your retro received.

When submitting your T1198, which by the way is optional, and is design to help you, not hurt you.
You will either benefit from it, or you won't benefit from it.

Now if the CRA when doing your calculations with the T1198, implements DEEMED TAXES on your retro, and you turn out not to benefit from it, you will not have to worry about it, as they will not come after you for any additional taxes, therefor even though you may feel that you have been fracked, and or have any chance with the RC4288, you are being mislead, as you have already have processed your taxes, deemed tax free, and penalty free.  

So yes send in your T1198, nothing to loose for doing so, but perhaps something to loose my not doing so.
Everything else is in my view is argumentative, instead of pushing the negatives, why not push the positives, like no harm will come to us by submitting the T1198, and by submitting it, at least this will give you a chance, to benefit from it, lastly, let's be thankful that we are given the opportunity to use this form T1198.

For what it is worth, my tax man is ex CRA...his motto is for 32 yrs my job was to screw you on behalf of thegovt BUT now it is my pleasure to screw them on your behalf.
He knows all of the tricks and he told me we had to send in the form

I agree with most of that buds but I would not urge ANYONE to not submit the 1198.

PLEAS SUBMIT THIS FORM IT CAN NOT HARM YOU IN ANY WAY SHAPE ORE FORM.

in fact it will help some.

always question authority

propat

Ok, let's look at the facts here, are there any penalties in completing and or submitting our tax return with respect to our retro received ?
Answer : NO. (FACT)
Are we being charged regular income tax as per the tax guidelines in completing and or submitting our tax return with respect to our retro received ?
Answer :YES. (FACT)
These are the facts before us, and it is crystal clear that in no way shape or form, are we being singled out in any way that would prove any disadvantages placed upon us by, the CRA, or whoever, with respect to our retro received.

T1198, (Fact) this is and optional tool provided to us, that if submitted, may and I stress may, lesson any tax owed when we claim all our retro income in the one year.

(Fact) You will benefit from the T1198, or you will not benefit from the T1198.

Again this is simply and optional tool given to us for the purpose of helping us, it is not given to us for the intention of hurting us, if individuals feel that this T1198 is unfair, and is design to cause you harm, the answer is quite simple, DON'T SUBMIT IT.