"I need some information from someone who knows Canadian Taxes really well. Here is the problem, I do not live in Canada, and have not live there for over 23 years. Reason I left with my family was because hardship in Canada, with the recession on loosing my house business and even a son died, I left to go to a new place to see if I could make money and help heal my heart. I filed my taxes before I left through H&R Block Canada, and the person that filed my taxes did not carry back my debt far enough as I had plenty of debt to use to carry forward as to know owe the Canadian Taxation Revenue. So I got a statement from the saying I owed over $1,000 to Canada Taxation Revenue. The problem is that I had never paid them, as I thought that they would notice that I had a lot of other debt that could have been carried forward to wipe out the paying of taxes. I know that it has been a long time since I have address this issue, but I have been an alcoholic for all these years and have finally come to grips with this problem and had got help; I really want to take care of this. Is there a statue of limitations in having to take care of your tax problem? Will I owe Canadian Taxation for the rest of my life. I want to do what is right. I still do not live in Canada, as I am a dual citizen of another country so could I get some help on what I can do? The short answer is that the debt would continue to be collectible unless the limitations within Section 222 of the Income Tax Act are activated, which won't be until March 4, 2014, in your case, as your debt was assessed prior to March 3, 3004.
Here it is:
222. (1) The following definitions apply in this section.
"action" 芦 action 禄
"action" means an action to collect a tax debt of a taxpayer and includes a proceeding in a court and anything done by the Minister under subsection 129(2), 131(3), 132(2) or 164(2), section 203 or any provision of this Part.
"tax debt" 芦 dette fiscale 禄
"tax debt" means any amount payable by a taxpayer under this Act.
Debts to Her Majesty
(2) A tax debt is a debt due to Her Majesty and is recoverable as such in the Federal Court or any other court of competent jurisdiction or in any other manner provided by this Act.
No actions after limitation period
(3) The Minister may not commence an action to collect a tax debt after the end of the limitation period for the collection of the tax debt.
Limitation period
(4) The limitation period for the collection of a tax debt of a taxpayer
(a) begins
(i) if a notice of assessment, or a notice referred to in subsection 226(1), in respect of the tax debt is mailed to or served on the taxpayer, after March 3, 2004, on the day that is 90 days after the day on which the last one of those notices is mailed or served, and
(ii) if subparagraph (i) does not apply and the tax debt was payable on March 4, 2004, or would have been payable on that date but for a limitation period that otherwise applied to the collection of the tax debt, on March 4, 2004; and
(b) ends, subject to subsection (8), on the day that is 10 years after the day on which it begins.
Limitation period restarted
(5) The limitation period described in subsection (4) for the collection of a tax debt of a taxpayer restarts (and ends, subject to subsection (8), on the day that is 10 years after the day on which it restarts) on any day, before it would otherwise end, on which
(a) the taxpayer acknowledges the tax debt in accordance with subsection (6);
(b) the Minister commences an action to collect the tax debt; or
(c) the Minister, under subsection 159(3) or 160(2) or paragraph 227(10)(a), assesses any person in respect of the tax debt.
Acknowledgement of tax debts
(6) A taxpayer acknowledges a tax debt if the taxpayer
(a) promises, in writing, to pay the tax debt;
(b) makes a written acknowledgement of the tax debt, whether or not a promise to pay can be inferred from the acknowledgement and whether or not it contains a refusal to pay; or
(c) makes a payment, including a purported payment by way of a negotiable instrument that is dishonoured, on account of the tax debt.
Agent or legal representative
(7) For the purposes of this section, an acknowledgement made by a taxpayer's agent or legal representative has the same effect as if it were made by the taxpayer.
Extension of limitation period
(8) In computing the day on which a limitation period ends, there shall be added the number of days on which one or more of the following is the case:
(a) the Minister may not, because of any of subsections 225.1(2) to (5), take any of the actions described in subsection 225.1(1) in respect of the tax debt;
(b) the Minister has accepted and holds security in lieu of payment of the tax debt;
(c) if the taxpayer was resident in Canada on the applicable date described in paragraph (4)(a) in respect of the tax debt, the taxpayer is non-resident; or
(d) an action that the Minister may otherwise take in respect of the tax debt is restricted or not permitted under any provision of the Bankruptcy and Insolvency Act, of the Companies' Creditors Arrangement Act or of the Farm Debt Mediation Act.
Bar to claims
(9) Notwithstanding any law of Canada or a province, Her Majesty is not liable for any claim that arises because the Minister collected a tax debt after the end of any limitation period that applied to the collection of the tax debt and before March 4, 2004.
Orders after March 3, 2004 and before effect
(10) Notwithstanding any order or judgment made after March 3, 2004 that declares a tax debt not to be payable by a taxpayer, or that orders the Minister to reimburse to a taxpayer a tax debt collected by the Minister, because a limitation period that applied to the collection of the tax debt ended before royal assent to any measure giving effect to this section, the tax debt is deemed to have become payable on March 4, 2004.
After 23 years, you can't amend the returns now. You can't even ask for fairness/taxpayer relief that far back. After 23 years, with you out of the country with (presumably) no assets, and no way to collect it, they will have likely classified the debt as uncollectible. That doesn't mean that they can't collect it, should you resurface, but they are likely not trying to collect it at this time.
If they haven't attempted to collect the debt between March 4, 2004 and March 4, 2014, and you haven't sent them a letter referring to the debt (which would acknowledge the debt and reset the time limit), they will be statute barred from collecting it. The problem is with you out of the country, you may not be aware if they've been trying to collect the debt or not, unless you have had the same address for the last 23 years. |
