Your friend is committing fraud. He needs to inform CRA of when he left Canada and repay all of the money he has illegally received. If he won't do that, you should report him.
Child tax benefit outside of Canada?
- Thread starter Saggitarius
- Start date
You can be assured that the CRA will find out and come after your friend for all the money he received + penalties + interest.
There's no penalty and interest accrued for CCB (only in income tax), if he doesn't inform and pay it back to CRA, and then CRA finds out thru their audits, and one day he comes back to Canada to work and then files income tax, CRA then will deduct the CCB to his refund, if there's any, or deduct it to future CCB payments if he claims again.
I'm not so sure about that. Illegally claiming CCB benefits is considered tax fraud and is subject to penalties, interest and even jail time:
http://ottawacitizen.com/g00/news/local-news/woman-sentenced-to-house-arrest-fined-for-tax-fraud?i10c.encReferrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNhLw==
Her penalties and interests wre on the income tax fraud, and she falsified birth cert for ccb app, don't compare that to people who landed and left a month later. Don't compare oranges to apples lol.
Why don't you call CRA and ask if CCB accrue interests, the agent will tell you no. CCB is not a tax it's a benefit.
Why don't you call CRA and ask if CCB accrue interests, the agent will tell you no. CCB is not a tax it's a benefit.
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Here's a link to the CPA Canada handbook, with the relevant section highlighted below. Penalties definitely apply.
https://www.cpacanada.ca/-/media/site/.../tx.../g10140-tx_chapter-28-penalties.pdf
"Subsection 163(2) of the ITA provides for penalties, commonly referred to as “gross negligence penalties” that are applicable when a person or partnership “knowingly or under circumstances amounting to gross negligence” makes, or is otherwise involved in the making of, “a false statement or omission” in a return or in providing information.
The penalty is determined under the ITA with reference to the understatement of tax payable that is attributable to the false statement or omission. Gross negligence penalties under the ITA can apply to unreported income, overstated expenses, or improperly claimed personal expenses. The penalty also applies to false statements and omissions affecting tax credits and similar deductions from income tax payable, including the Canada child tax benefit and the goods and services tax credit."
It's not even from the CRA cctb is obsolete, it's now called ccb.
One has to be declared guilty of "gross negligence" like falsifying documents to have penalties that is mostly on income tax filing. But if it just the example above that is not gross negligence some people are ignorant of the rules that they have to inform CRA if they are leaving Canada for a long period of time, eventually CRA will find out, like in a year if one didn't file an ITR (coz he is not here) and still claiming CCB, they will send letters and if no reply, the payments will stop.
One has to be declared guilty of "gross negligence" like falsifying documents to have penalties that is mostly on income tax filing. But if it just the example above that is not gross negligence some people are ignorant of the rules that they have to inform CRA if they are leaving Canada for a long period of time, eventually CRA will find out, like in a year if one didn't file an ITR (coz he is not here) and still claiming CCB, they will send letters and if no reply, the payments will stop.
I understand that the nomenclature has changed since the handbook was published, but to suggest that the CPA Handbook is wrong becuase it's not from the CRA is just weak. Unless you can provide some evidence to the contrary, I don't agree with what you are saying, and would much rather trust the CICA.
Further, as stated in the link I provided, the penalties can result from "false statements" or "omissions", a prime example of which would be telling the government that you are in the country when you are obviously not.
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Somebody here already called cra about ccb penalty and interest because he received ccb that he was not supposed to get and cra agent already said it doesn't accrue, I'd rather believe cra than you.
hi guys......lets say a guy lands this month with his wife & kid...& there was an emergency & his wife & kid has to travel back to my home country for lets say 3 months...does he renounce his ccb? lets say he does not & they return back after 3 months? what is wrong in it? just asking to understand how the whole thing works.
When he returns he should call CRA and tell them that he was out of the country for some period of time, CRA will adjust the payments by deducting the period he was not in Canada to future payments.
Hi, I moved in Canada in November 2015 on work permit and my family including my wife and my 4 year old kid moved along with me in June 2016. I have not claimed any child care benefit yet. Am I eligible to claim the Child care benefit? And if yes, can I claim starting June 2016 or will I get paid only form December 2017 as that's when my child completed 18 months in Canada. I remember reading it somewhere that temporary residents can claim child benefit from 19th month only. Even if I start claiming from December 2017. Can I claim for last 18 months too as I continue to stay here or Will I get paid only starting December 2017.
Are you eligible?
To be eligible for the Canada child benefit (CCB), you must meet all of the following conditions:
- You must live with the child, and the child must be under 18 years of age.
- You must be primarily responsible for the care and upbringing of the child.
- You must be a resident of Canada for tax purposes.
- You or your spouse or common-law partner must be:
- a Canadian citizen
- a permanent resident
- a protected person
- a temporary resident who has lived in Canada for the previous 18 months, and who has a valid permit in the 19th month
- an Indian within the meaning of the Indian Act
Thank you. That was quick and to the Point. I will fill my tax returns accordingly in the coming months.
You can apply before sending in your taxes. Look up the form and send it in. Given you have been in Canada it will be easy for to determine your income for the past taxable year.