Taxes Taxes and More Taxes...and Interest

  Like most Canadians, I assume, we file our taxes every spring....on time. Since John retired we always owe some extra tax money. When the taxes are filed we immediately pay them. Immediately. Same day. Same hour. Almost the same minute. Apparently, that isn't good enough for Revenue Canada.

  We have received notification that some interest is due. Interest? Isn't that what you pay when you owe money? Our balance is zero. It must be a mistake. Not according to them it isn't. They want us to pay installments on the projected or estimated amount that we are going to owe. Four times a year they want a lump sum payment from us. On taxes we don't yet owe. The outstanding balance we have at the moment is based on not making those payments. Am I making this clear? Interest on money not yet owed.

  This is insanity! Now perhaps if we were always delinquent filing on the taxes or late with the payment maybe I could see their point. But we are neither. So why should we be forced to make payments on money we do not yet owe or even more bizarre pay interest on said unmade payments? We didn't ask for the payment plan nor agreed to it or how much it could/should/would be! This was all from them. Remember we ALWAYS pay the amount owed in full.

  What the CRA doesn't seem to understand or care about is that when filing my returns every year I get a refund. And it's always 75-90% of what John owes. I file first, well before they are due, receive my refund and then use that to pay John's. With a little help from our savings. They are asking for money we do not have extra right now but do have in the spring. WTH??!!

  It's a losing battle with CRA I know. We will pay up and shut up as most of us do when it comes to this branch of the government. The fear of an audit keeps us in line I suppose. Part of living in a country is paying taxes and I really do enjoy all the things we receive from those funds however I would just like to owe it before I pay it.

  Hmm, I wonder how PM Minister Brian Mulroney got out of paying taxes on that $250K cash he put in his safe and never claimed? Think he would take my phone call?

  Ang