CRA Notifies Man of Tax Debt 16 Years Later :CRA SOTW

Before reading this week’s Tax Tale you will want to familiarize yourself with the February of 2003 Supreme Court of Canada ruling in Markevich v. Canada.
http://64.233.169.104/search?q=cache:aBNsiE6HCbEJ:scc.lexum.umontreal.ca/en/2003/2003scc9/2003scc9.pdf+markevich+2003&hl=en&ct=clnk&cd=1&gl=ca

Government Notifies Man of Tax Debt 16 Years Later

COLIN MACLEAN

The Truro Daily News

ONSLOW MOUNTAIN — To say Eddie Hollingsworth was surprised to recently learn he owed the federal government money from 16 years ago would be an understatement.

“I’m pretty much at a loss for words to describe how I feel,” said the Onslow Mountain resident.

Hollingsworth found out he owed the money after taking his taxes to H&R Block in April. He was informed the business couldn’t do his taxes because of an overpayment of $225 from 1992.

The news came as a complete surprise to Hollingsworth who had never received any notification he owed money to the federal government.

“From 1992 until now they never even let me know about it.”

It is not so much owing the money that’s upsetting, he said, it’s the fact the debt is more than 15 years old.

After making some inquiries with the Canada Revenue Agency, Hollingsworth decided to send in his taxes with a letter explaining the situation and asking that his debt be taken off his return.

However, he has since been told he must repay the $225 and will not receive his tax return until he does.

“All they had to do was take that off. There was quite a bit left over, put it in the bank. Everything would have been said and done with,” he said.

Because of confidentiality issues, the Canada Revenue Agency cannot comment on individual cases, said Roy Jamieson, director of communications.
“If, for some reason, you were paid too much, which could be for any number of reasons, then that would be recovered,” said Jamieson.

Normally, individuals would be notified through their notice of assessment.

“We probably wouldn’t be taking extraordinary steps to collect it,” he said, adding the money would be recouped the next time the individual was owed money from a tax return.

There is, however, a fairness appeals process where an individual can argue against paying the debt.

Hollingsworth plans to keep looking into the issue. He has been in contact with local politicians and the Canada Revenue Agency. He even received a response from the office of Prime Minister Stephen Harper.

“If you owed money to the bank they would be quick to let you know about it,” he said.

reporter@trurodaily.com

**The story is kind of vague on details so it is not clear how the Markevich decision might apply. I contacted Colin MacLean and the Truro Daily News, hoping they might pass some info on to Mr. Hollingsworth, but neither took the time to respond. Hopefully someone can track Hollingsworth down and advise him to at least investigate the Markevich decision.**

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