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Tuesday, October 28, 2008

Reader desperately needs your help with child benefits tax problems in Ottawa (child benefits)

A reader of this blog wrote to ask for advice. Maybe you can help!

The person has rightfully claimed tax benefits for having children but CRA is apparently not happy with something (can't go in details here for privacy reasons). The amount disputed is pretty big and that person can't afford a lawyer and somehow earns a little bit too much to get a free public lawyer.

Do you have any idea that could help that person?

4 comments:

Anonymous said...

Wow - with that much information - I'd be surprised if anyone could help?!?

A bit more detail (that doesn't hurt the person in question obviously) would go a long way in getting someone to help.

The Canadian Money Reviewer said...

Anonymous: you are right.

The reader needs legal advice to build a case for CRA. The core of the issue seems to be around custody rights of the children (complete vs shared). I think in a perfect world, a lawyer doing pro bono work might be able to help.

Is that enough info?

Neil said...

Still pretty vague. As a result, all that's left is vague advice. The details on how to qualify for various types of tax benefits are on the CRA website. Read up on the relevant ones. If she does indeed qualify for the credit in question, start with an internal CRA appeal - if your reader is acting in good faith, there's a good chance it will get resolved there. If not, further appeals are under the jurisdiction of the Tax Court of Canada. Contact them for more information about the legal route.

From your vague info, I'm guessing the issue is that both ex-spouses have claimed equivalent-to-spouse credits (allowing a second personal deduction, the same as having a spouse with no income). This credit can only be claimed by the primary caregiver, so that would raise a flag. If your reader can show that she's the primary caregiver, then it shouldn't be a problem.

Above suggestions are of course based on some major extrapolations from your vague inquiry. Also, I've never been involved in a dispute like this - I just fill out the return. Take with as many grains of salt as you deem appropriate.

The Canadian Money Reviewer said...

Neil: thanks for trying to help. I got some more info: the main issue seems to be able to build the case to demonstrate that the person is the primary caregiver (which you've brilliantly pointed out). I think there needs to be a court order of some kind which requires lawyer involvement.

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