The Government Giveth and the Government Taketh Away

A couple weeks ago, I received a very unwelcome letter from the government.  More specifically, it was from the Canada Revenue Agency, that branch of the government that is just one word short of a really funny acronym.  The ones formerly known as Revenue Canada.  You know, the people you pay taxes to.

Anyway, the Canada Revenue Agency people told me they had reassessed my tax return from 2006 and that I now owed them money, PLUS INTEREST, for the year or so that I hadn’t paid them, even though I had just been informed.  They said they had adjusted my Canada Pension Plan contributions downwards and that I now owe them $114.26.

I phoned the CRA and it was clear the person on the other end of the phone didn’t have a clue.  That didn’t stop him from being adamant the mighty agency employing him was right, even though he couldn’t tell me why I owed them money.  He put me on hold while he checked.  He came back and said the “system” said I had claimed more than I actually had.  He didn’t have my actual return in front of him.  If he did, he would have seen the correct amount.  Well, I did have my copy of the return in front of me – a photocopy  of the relevant page I had sent, as it happens.  He conceded that it was probably a clerical or data entry error that led to the wrong number being entered but maintained that I still owed them the $107.73.  The good news, though, was that I could probably appeal the interest of $6.53.  Yay.

I was sick with the flu at the time so my brain just wasn’t putting things together.  Fortunately, when I was in better shape to walk all the way up that hill to the mailbox to mail the bastards a cheque, I was also more mentally alert.  Something wasn’t right and I knew it.

I dug out the letter they sent and the reassessment notice.  I also dug out my tax return and supporting documents, including the original assessment that didn’t find this ‘underpayment’.  I added up the CPP contributions on the T4s.  Yep.  They added up to exactly what I claimed.  No overstatement on my part.  Then I looked at the reassessment.  Wait a minute.  This doesn’t say I claimed more than the amount on my return.  It says they adjusted it down from that number.  How can they do that?  I did actually make the contributions and I’ve got the documents to prove it.  They can’t just say I didn’t.  And, why does the “system” have a completely different number?  They can’t seem to get their facts straight and they don’t seem to be able to tell me why I owe this money.  The only thing they seem to be certain of is that I do.  Rather than sending a check, I sent a letter pointing out all of this and stating that if they still claim I owe them money they’ll have to give me a detailed explanation and justification for it.

Just a mistake?  Maybe, or maybe the government was spending money when they were swimming in it but, now that things have turned sour south of the border and there are signs of a slowdown on this side of it, there just isn’t as much money coming in as expected this year so they’re looking for ways to get some of it back.  So, maybe they’re sending out reassessments hoping people won’t question the government and just pay up.  That should help the books.

You may be thinking I’m a conspiracy theorist, but this isn’t the first time something’s gone wrong with the tax people and me.  A few years ago I decided to try their new direct deposit payment method for my refund.  After six to eight weeks, when it still hadn’t been deposited, I phoned them.  I was told it had been deposited into my account weeks earlier.  After telling the person that it hadn’t he checked my account details.  They had the right account number, but it had been deposited into a different account number entirely – one that wasn’t mine.  This happened about the time the financial scandals broke out in Ottawa, which only fuelled my suspicions further.  Either they get up to some fishy stuff with our taxes in that agency, or they make an awful lot of mistakes – with my money.

The Canada Revenue Agency People.

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