Legal Fees (Assorted Topics)

But Trooper what about this extra tax Propat is talking about, this could hurt a lot of us

One important point to all, that I would like to pass on with respect to this T1198 form.
If one is under the assumption that by filling, and submitting this T1198 form, will in some way, shape,or form, result in having you owe money to revenue Canada, is assuming wrong. The only result one can expect, by submitting this form, is either having their tax return remain as status quo, or having revenue Canada issue you a refund.

lmao.

propat

All I know is that I plan on paying my taxes with birdseed and if they want I will spread it back all over the yard however many years they want me to.   As for Nav, yep, fracked!

Navrat, I will try and answer your question in plain English by providing you with and example.

Narat asked ? Do I pay extra tax if they spread it out over the years ?

Example : You have completed your 2013 taxes. You have claimed all of your retro for that year ( 2013 ) The tax rate for 2013 is 35%.
You owe revenue Canada  $3467.
You complete, and submit T1198 form along with your taxes.
Your retro goes back ten years.
Now by sending in the T1198, CRA will now look at the previous nine years tax rate.
Example 2012 = 32%
             2011 = 32%
             2010 = 29%
             2009 = 21%
             2008 = 23%
             2007 = 22%
             2006 = 23%
             2005 = 20%
             2004 = 22%
Now the CRA will calculate your retro, as if you have received it, in each of those years. This retro amount will come from the T1198 form, that you have provided them.

Now I will give you two examples of what results they have found from their calculation.

EXAMPLE 1. The calculation shows that the member owes not $3467, but $7749. In this case your original tax return, will remain unchanged. So you only pay $3467, and you are finish, with your tax return.

EXAMPLE 2. The calculations shows that you owe $824. not $3467. In this case, revenue Canada will either issue you a refund cheque for $2643, "or instead of owing $3467, you now only owe $824."

So the answer is NO.

lmao no worries buds im sure you prepared to pay it all in one year as you said you would last time we had this discussion. its gut wrenching I know but im still hopeing something can be done.

propat

I am depressed with this, thank God The Walking Dead is on tonight

no their is no tax penelties according to the CRA for QRLSP only deemed tax ore notional tax witch I have said many times and find myself saying again. but I myself consider them penalties. these quotes are from peoples attempts either threw a review prosses ore in a lawsuit challenging the special calculation on their QRLSP after sending in their t1198 forms in respect to how the notional tax was applied. how is this different to our situation? yes penelties are their for those who through their own fault failed to record income in previous years for those with retro they are not called penalties but deemed tax ore notional tax. if you check out the ITA and its regulations you will find all you need to know.

propat

propat, You are quoting quotes, that refer to different circumstances, with respect to the Canada tax act. I am in no way saying, or implicating, that tax penalties do not exist, within the Canada tax system, they most certainly do. What I am referring to is the T1198 form, that is the form in which I am referring to, if one is to read the form, and it's discription, carefully, nowhere does it say that tax penalties will be imposed, by submitting this form. There are no penalties, again, this form is provided to us, to lesson the impact, of having to pay all the taxes in the one year. ( 2013 ) Again, this form is provided to benefit us, not to impose, any penalties.

oh buds your only half fracked being in Ontario as are the guys in alberta the rest of the country is totally fracked lol. don't give up bud send in both forms things could get better.

propat

Thanks guys, I am fracked I believe

teen sorry buds forgot one.

because of our special circumstances you only need to ask your accountant one question.

what exactly are the special calculations your t1198 form is referring to.

if he cannot answer that question he is not the guy for you so move on to the next one.

propat

Forms required - T1198 - Manulife will send this to us in February, or you can request one from CRA, or download one from the net.
To fill out the T1198 you will need the information from your calculation sheet, or sheets, sent to you by SISIP/MC when you received your retro package.
To fill out the T1198, this can be done by yourself, done by your accountant, done by yourself, and varified by your accountant, you can contact a CRA agent, who specializes in the T1198, to walk you through it.

When the T1198 is completed, you must send it in, along with your 2013 tax return.

trooper you could look at income tax regulations 4301 ore to anything ore anyone elce who will tell you what the actual SPECIAL CALCULATIONS are.

Prescribed Rate of Interest

4301. Subject to section 4302, for the purposes of

(a) every provision of the Act that requires interest at a prescribed rate to be paid to the Receiver General, the prescribed rate in effect during any particular quarter is the total of

(i) the rate that is the simple arithmetic mean, expressed as a percentage per year and rounded to the next higher whole percentage where the mean is not a whole percentage, of all amounts each of which is the average equivalent yield, expressed as a percentage per year, of Government of Canada Treasury Bills that mature approximately three months after their date of issue and that are sold at auctions of Government of Canada Treasury Bills during the first month of the quarter preceding the particular quarter, and


(ii) 4 per cent;



(b) every provision of the Act that requires interest at a prescribed rate to be paid or applied on an amount payable by the Minister to a taxpayer, the prescribed rate in effect during any particular quarter is the total of

(i) the rate determined under subparagraph (a)(i) in respect of the particular quarter, and


(ii) if the taxpayer is a corporation, zero per cent, and in any other case, 2 per cent;



(b.1) subsection 17.1(1) of the Act, the prescribed rate in effect during any particular quarter is the rate that would be determined under paragraph (a) in respect of the particular quarter if the reference in subparagraph (a)(i) to “the next higher whole percentage where the mean is not a whole percentage” were read as “two decimal points”; and


(c) every other provision of the Act in which reference is made to a prescribed rate of interest or to interest at a prescribed rate, the prescribed rate in effect during any particular quarter is the rate determined under subparagraph (a)(i) in respect of the particular quarter.

propat

trooper here is the answer to that question as answered by a former head of the CRA when summoned to court to testify on this matter under oath.

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).

however this is not what I want I would like you to find this answer on your own it will be a lot more believable that way.

propat