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Tax Topics and Forms

The trustee notifies the Canada Revenue Agency (CRA) when a taxpayer files an assignment in bankruptcy.

  1. Income Tax Returns
  2. GST/HST Returns
  3. GST/HST credits
  4. CRA's Right of Offset
  5. Print an Income Tax Checklist
  6. Print worksheet for self-employed: income and expenses
  7. Print worksheet for self-employed: vehicle expenses
  8. Print worksheet for self-employed: home office expenses
  9. Print CRA form: Request to Close a Business Number
  10. Print CRA form: Request for a New Business Number
  11. Print CRA form: Authorizing a Representative (Consent form - individual)
  12. Print CRA form: Business Consent Form



Income Tax Returns

The trustee will file the following returns on your behalf:

It is the bankrupt's responsiblity to provide the trustee with all information required to complete the tax returns. Please see the Income Tax Checklist for more details about the required information.

Notices of assessment for these tax returns will be sent to the trustee. Any refunds resulting from these tax returns will be sent to the trustee to be included in the bankrupt's estate (for eventual distribution among the creditors).

Any tax owing on tax returns of prior years and the pre-bankruptcy return is normally considered a debt included in the bankruptcy. Any tax owing on the post-bankruptcy return must be paid by the bankrupt.


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GST/HST Returns

If the bankrupt has a business number, CRA may request the trustee to file GST/HST returns outstanding at at the date of bankruptcy. The bankrupt is responsible to provide the trustee with the required information.

At the date of bankruptcy, a form is filed with CRA to cancel the business number. If the bankrupt wishes to continue the business, a new business number is applied for. The old business number represents the pre-bankruptcy activity and the new business number, the post-bankruptcy activity.

Any tax owing on GST/HST returns for periods up to the date of bankruptcy is normally considered a debt included in the bankruptcy. Any tax owing on GST/HST returns for periods after the date of bankruptcy must be paid by the bankrupt.


GST/HST credits

Cheques for the bankrupt's GST/HST credits will continue to be sent to the trustee's office until both the bankrupt and the trustee have been discharged. (The trustee is normally discharged about a year after the bankrupt is discharged). The trustee normally holds these funds until the trustee's fee has been paid in full. Once the fee is paid, any GST/HST credits received will be forwarded to the bankrupt.

Right of offset

CRA has the right to offset GST/HST credits and a Pre Bankruptcy Tax Refund against pre-bankruptcy debts that you owe to the government, including income taxes, GST/HST, overpayments of E.I benefits and federally guaranteed student loans. Both pre- and post- bankruptcy tax refunds may also be seized if you owe arrears of alimony or child support as a result of a court order.

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