Long story short, I had a RRSP account with Questrade. Then I moved to the US for work purposes. Under the Canada/USA tax treaty, since I was in the US for more than 183 days of the year I was deemed a non-resident Canadian, and a US resident alien. Why this matter is that as a non-resident, withdrawals from RRSP are taxed at a flat 25%, regardless of the amount, or your income.
In January of 2012, I requested a full withdrawal of my RRSP account. Despite telling them not to screw up and having documentation that they will correctly deduct 25% withholding tax, they messed up anyway and took 30%.
After repeated phone calls, apparently the only possible way for them to fix the problem was for me to send back all the RRSP money to them, and then they send back the correct amount. They absolutely would not send me the difference. All the funds were invested at this point so it was not an option.
My other option was to use the NR7-R form, which essentially asks the CRA for a refund because I paid too much tax. Unfortunately, for this to work I need Questrade to fill out 3 boxes on the form.
I've been nagging them every 2-3 weeks for a status update and they repeatedly tell me that they've been telling their supervisor, and that back office is looking at it, etc. When asked for a direct number to their supervisor or back office, they refuse.
What are my options?
P.S. Terrible terrible company. Do not do business with them. If you have an account I highly recommend you take all your money out while you still can.
Aug 5th, 2012 08:51 PM #1
- Join Date
- Jan 28th, 2008
- London, ON
Questrade owes me money, what do I do?
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