We had a client who was very behind on his taxes because every time he filed he ended up owing, a lot. So he avoided it like the plague.
We took a close look at his return, and he was right, it didn't make any sense... he shouldn't owe. But he was missing information and his previous (Major Tax Firm) hadn't noticed. All he was filing with was a T4, and owing $5000 each year. Obviously something was seriously wrong, especially since he worked at a bank. This should have been noticed by anyone doing his tax return and he shouldn't have been left wondering why.
It turned out his employer had a generous RRSP plan through payroll, and he was getting a LOT of RRSP's held back off his pay and matched, but never bringing in the receipts with his taxes when it was time to file.
We helped him obtain those missing receipts and got him back over $22,000 from previous returns and reversed all his prior late filing penalties of $10,000 (because if you don't really owe, you don't pay penalties). As well as refunds in all the years we were filing that he thought he was going to owe again.
Also, because he hadn't been using his RRSP receipts, his Home Buyer Plan repayment was being added to income, which we also had corrected.
In addition, because his RRSP's were so large, he was over-contributing and about to be penalized on his oversize RRSP (by a 1% penalty per month). But we eliminated that overpayment by adjusting his returns so that his Home Buyer Plan was paid out early and advised him to stop contributing so much to the RRSP. This out of the box strategy saved him a lot in penalties as well.
We also helped him claim a lot of medical and dental items he didn't know he was missing.
Contact us to look over your old returns at service@painfreetaxes.ca
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