• Last Updated:
  • Mar 31st, 2009 4:27 pm
[OP]
Newbie
Feb 2, 2009
15 posts
Toronto

problem with CRA

Hi group

I have a strange problem with CRA. I recd a letter from CRA a couple of weeks ago asking to pay around $2000 to them. I called CRA to find out why I should pay and here is the story;

In 2006 when my accountant filed my taxes, he put my old address in the return by miskate instead of the current address at that time. Because of this, CRA mailed my refund check for $2000 to my old address. I tried to get the check from old address but could not get it. So I called CRA and asked them to cancel the check and reissue another check and send it to my current address. As I requested they also re-issued my refund check and I deposited it into my back account. All this happened in 2006.

Now they are saying that I cashed both the checks in 2006 and I owe them $2000. So I asked them to send me a copy of the cashed checks and they also sent them to me. One of the checks contains my signature which is the one I deposited into my bank. The other check that was sent to my old address contains a forged signature of mine which looks completely different (the person has written my full name as signature which I don
19 replies
Banned
Sep 11, 2008
404 posts
4 upvotes
GTA West
I was going to wish you luck, but then I saw this:
rsk12 wrote:
Feb 9th, 2009 5:06 pm
I have already paid the $2000 with interest to CRA as they said that I have to pay first and then dispute it.
Sounds like you're screwed.
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Deal Fanatic
Jul 4, 2004
8136 posts
1090 upvotes
I don't think he is screwed. He was smart to pay the CRA and then dispute this as I'm sure the fines, interest and/or any penalties would certainly add up. I guess the next step would be to try and find out from the Bank what account had this money gone into when the person had cashed it? Perhaps even bring this matter up with the Bank as well and request that the Corporate Security department investigate it.

If the teller broke procedure and didn't follow policy to verify the person who cashed it, they might be on the hook to reimburse you (possibly). If they did follow their own procedure then they should have the information (driver's ID, etc) to prove it written down somewhere.
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Deal Addict
May 24, 2006
1724 posts
162 upvotes
Umm.. sorry but I think you are screwed now that you paid it already. You never have to pay it in order to dispute it.

You can try and continue disputing but it will be hard for you to prove it. CRA issue government cheques, which literally anyone can deposit (similar to GST cheque). In theory, the fault is with you for filing with the wrong address. Even if it was prepared by someone else, you still have to sign it and the duty is with you to verify that the information is correct. You should try to use direct deposit from now on.
Sr. Member
User avatar
Feb 14, 2006
950 posts
103 upvotes
Toronto
The OP isn't screwed. They did the right thing by paying first. I had a similar fight with the CRA as I had to provide proof that I didn't receive income from my old company. If you fail to pay in time, they withhold income tax returns as well as GST supplements until it is.

In my case, I ended up getting the money back in 6 months
Member
Jan 10, 2009
242 posts
Hamilton, ON
Definitely go to the bank. Get them to find where the first cheque was deposited, and get a manager of your branch to write a letter to the CRA on your behalf saying it was a fraudulent transaction.
Newbie
Jan 19, 2009
41 posts
I don't think OP screwed up by paying at all, and in fact, I had something similar happen when my GST cheque was sent to a prior address but my address change hadn't been processed yet. I found out the cheque was cashed when I didn't receive it and called.

When they told me it was cashed and I told them it wasn't me, they sent me a copy of the endorsement to confirm it wasn't my signature, as well as a form confirming same, that had to be notarized. They were also VERY clear to me in indicating all of the federal offences that had been breached and that they took this VERY seriously and would prosecute "the offender". Not sure if they were just trying to scare me to make sure I was being honest? I can't see them prosecuting over a $75 cheque but what-do-I-know?

Signed the form and sent it in, and I had my replacement cheque within about 2 months. I subsequently tried to find out whatever happened and they told me they couldn't tell me anything citing "confidentiality".
Sr. Member
Dec 22, 2005
751 posts
5 upvotes
Dundas
You might also consider filing a police report, it is fraud after all. I don't know if they will actually investigate the matter but at least you can give the file to the CRA when explaining this matter. Also, you could provide the bank with the police number and they might help track where the money went to.
Sr. Member
User avatar
Mar 24, 2007
628 posts
11 upvotes
Krox wrote:
Feb 10th, 2009 9:09 am
You might also consider filing a police report, it is fraud after all. I don't know if they will actually investigate the matter but at least you can give the file to the CRA when explaining this matter. Also, you could provide the bank with the police number and they might help track where the money went to.
+1
An open police file, along with the visit to the notary which CRA will require, should speed things up - that's not to say that it will be quick. You did the right thing by paying CRA now. If they think you are keeping their money they can come back after you and garnishee your wages which I've seen happen and heard is quite unpleasant. I hope this gets resolved soon! Make sure you are keeping track of how long CRA has your money so you can ask them for interest! ;)
[OP]
Newbie
Feb 2, 2009
15 posts
Toronto
Thanks for the responses guys. I am going to file a police report as well as go to the bank and initiate an investigation. The first check does not give clear details of where it was cashed. It just shows BNS, Toronto. I am guessing it is Bank of Nova Scotia. I hope the person deposited this into an account. If it was just cashed out then it would be difficult trace. Anyways I will keep the board updated.
Newbie
Jan 22, 2009
34 posts
1 upvote
canada
i am not sure but may be registering with equifax or transunion for identity theft would be a good idea too...

al the best
Member
User avatar
Sep 20, 2005
404 posts
12 upvotes
[quote="rsk12" post_id="8233650" time="1234217203" user_id="210460"]Hi group

I have a strange problem with CRA. I recd a letter from CRA a couple of weeks ago asking to pay around $2000 to them. I called CRA to find out why I should pay and here is the story;

In 2006 when my accountant filed my taxes, he put my old address in the return by miskate instead of the current address at that time. Because of this, CRA mailed my refund check for $2000 to my old address. I tried to get the check from old address but could not get it. So I called CRA and asked them to cancel the check and reissue another check and send it to my current address. As I requested they also re-issued my refund check and I deposited it into my back account. All this happened in 2006.

Now they are saying that I cashed both the checks in 2006 and I owe them $2000. So I asked them to send me a copy of the cashed checks and they also sent them to me. One of the checks contains my signature which is the one I deposited into my bank. The other check that was sent to my old address contains a forged signature of mine which looks completely different (the person has written my full name as signature which I don
[OP]
Newbie
Feb 2, 2009
15 posts
Toronto
Potsman wrote:
Feb 10th, 2009 7:31 pm
Go to your local MP's office and request a minsterial inquiry (it doesn't matter if they aren't a conservative). Because CRA is a government organization, your MP can inquire on your behalf. You will have to sign a consent authorizing them to act on your behalf. Your MP's assistant will take all the details. Bring in all documents you have and show them that it is an obvious forgery. I believe CRA can send you an internal form where you are providing a sworn statement the cheque was forged. In the end, the bank will be on the hook.
Hi All

Thanks for al your responses. This is what I have done so far in regards to my CRA issue;

1) Went to bank of Nova Scotia and asked them to initiate an investigation on my check that was cashed by somebody.
Bank mentioned that since this is a CRA issue, only CRA can initiate an investigation with the bank and I as an individual cannot initiate an investigation.

2) Went to the police station to file a complaint and they mentioned that since this is check fraud , CRA would handle it and I would not need any police report for this.
3) Spoke to CRA and they asked me to dispute the second payment and sent me a affidavit which I signed and got it notarized and sent it to CRA. Now I have to wait for some time and see what happens. While waiting, I spoke to a lawyer and he mentioned that in cases like this CRA will usually refund the money after investigation and it will take abt 6 months.

If CRA does not do anything in the next couple of months then I will go to my MP and do as you have suggested. I will keep the board posted.

Cheers
rsk
Deal Fanatic
Jul 4, 2004
8136 posts
1090 upvotes
rsk12 wrote:
Feb 26th, 2009 11:57 am
Hi All

Thanks for al your responses. This is what I have done so far in regards to my CRA issue;

1) Went to bank of Nova Scotia and asked them to initiate an investigation on my check that was cashed by somebody.
Bank mentioned that since this is a CRA issue, only CRA can initiate an investigation with the bank and I as an individual cannot initiate an investigation.

2) Went to the police station to file a complaint and they mentioned that since this is check fraud , CRA would handle it and I would not need any police report for this.
3) Spoke to CRA and they asked me to dispute the second payment and sent me a affidavit which I signed and got it notarized and sent it to CRA. Now I have to wait for some time and see what happens. While waiting, I spoke to a lawyer and he mentioned that in cases like this CRA will usually refund the money after investigation and it will take abt 6 months.

If CRA does not do anything in the next couple of months then I will go to my MP and do as you have suggested. I will keep the board posted.

Cheers
rsk
Thanks for the update and again, paying it while in dispute was smart or else fines, penalties and interest amounts will add up.
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Deal Addict
Dec 10, 2007
1936 posts
33 upvotes
I am in a similar situation but no way I was going to pay CRA over 2.6k of my $ lol. So what I did is call them and explained the situation and they agree to withhold interest while I'm getting everything sorted out for them. Basically my last employer made an accounting error.

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