Here are two stories that show how important it is to know how much tax you owe and pay the right amount. If you don’t, the government can hit you with heavy penalties.
In the first case, a woman sent a cheque for what she thought she owed. The Canada Revenue Agency didn’t cash her cheque and sent her a big refund in error. Many months later, it demanded repayment, plus interest, even though it had made the mistake.
In the second case, a woman moved around so much that the tax department’s letters went astray. Eventually, she got a request to pay a large amount. She said she would pay in instalments, but after the first cheque was sent, she found her bank account had been drained.
Check out the details below, the kind of cautionary tales that remind you never to get on the wrong side of the CRA.