CRA can collect tax debt from spouses

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If you owe money to the Canadian Revenue Agency, it is very difficult to avoid paying. In fact, it can be personally responsible for paying your spouse’s tax debts, even if your spouse or partner, depending on your spouse or crab. When a recent tax claim decides in the beginning of this month, the CRA shows how to combine the “Rules of Joint Responsibility” in section 160 of the Income Tax Act to collect tax debt.

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Before entering the details of this recent work, let’s consider what the law says about the tax debts of others. According to a joint responsibility, CRA has the power to take a power to be responsible for the tax debts of someone who does not have a length of operation in a transaction in which they participate in taxes.

“Unlikes with no sleeves” – usually blood relatives, a spouse or a common law partner, as well as a corporation and its shareholders and its shareholders and its shareholders and one another with each other

The assessment of the CRA’s joint liabilities must be performed successfully to win four criteria: must be transferred to the property; Transferor and transfer are not needed to not be in length; The transfer of the transfer was not necessary by the transfer of the transfer; The transfer was a prominent tax liability during the transfer.

In the last study for about six years in court, the taxpayer was estimated at $ 10,650 from the husband of the tax act in 160’s husband’s husband than this amount. The next result of the section 160 must pay the amount due to the CRA, which is taken from the transfer without transferring.

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Between April 2012 and June 2013, the taxpayer’s husband made four different real estate transfers to his wife, who made $ 10,650. These transfers were conducted from the husband’s personal bank account inspections from the taxpayer’s personal bank account. Since it is married, it is not clear for the purposes of the 160s.

CRA received no idea that the taxpayer had no idea for the relocation of the property. However, the trial claimed that the taxpayer looked fully in order to relocate the property as the taxpayer, “previously husband and the vouchers asked by the question of question.”

Since the ruling taxpayer does not have the “self-service claim” loan payments and cash transfers, “the self-service claim”, or the husband in the court should be considered, he said.

The only documentary evidence given to support the taxpayer approval is that the checks include “payments” or “loan payment” of memo lines. There were no bills and credit contracts and at any time there was no system to record the outstanding balance of these “pyroped” loans. The judge admitted that the financial regulations between his spouses are usually less than the financial arrangements between third parties. ” Therefore, he did not expect extensive documents, as the loans between his spouses are “no exception.” However, when such loans are given, the judge “(them) would be noted or documented or documented outside a memo line in a check or documented or documented.” At the minimum, the judge will want to check the evidence of the checkout with similar memo lines from the taxpayer to his husband, until the first developed.

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When the test returned in April 2019, the taxpayer did not call his husband as a witness because he was outside the country. The daughter, who played the role of the taxpayer agent, contacted the phone on the phone and said that he had less documentary evidence that his debts were less than $ 10,650. Based on this, the ruling postponed the hearing of the appeal and allowed his wife to reopen his wife to call him as a witness.

After the delays due to the COVID, the tax court plans to continue the work.

Since this delay, the Tax Court has made a large number of unsuccessful attempts to resume the proceedings of the court, nor did the taxpayer nor a daughter attempted to find a way to continue the court hearing.

In the intervention years, the taxpayer was very sick, but did not actually be required in court to continue his work. The judge was simply looking for her husband to testify as the amount of her husband’s nature or the amount of controversial tax debt.

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Until December 2024, the rapid progress has been moving for more than two years, when the judge gave three options to the taxpayer, continue to court the husband as a witness; Continue to court without being called to the court as a witness; or by February 28, 2025 and the arguments or documents written for the result of the judge based on these presentations.

The taxpayer did not respond to any of these options, nor did the court’s voice message left to decide on the evidence presented by the judge so far. The judge did not conclude that the taxpayer was not able to remove his husband as his husband and did not say that there was no evidence to confirm that there was no tax debt. Therefore, the judge is responsible for his husband for $ 10,650 tax debts of tax debts.

Jamie Golombek, FCPA, FCA, CFP, Clu, TEP, Toronto is a managing director, tax and property planning in the CIBC special wealth. Jamie.golombek@cibc.com.

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