HEADS UP! This protest reveals all low-income earners including pensioners hit by new Canada Revenue ruling


This is a week where I haven’t been following news broadcasts closely, so when my neighbor knocked on my door to show me a letter she had just written to CTV`s Pat Foran, I was shocked to learn that what worried my brother was in fact actually happening. Not only do the rich get richer, the poor get more knocked around. This Canada we live in today I don’t recognize. No longer can we count on our government for social justice. And Veterans, what my neighbor protests hits you in the same place as it does her — in your pocket book — and eventually in mine when I retire!!

Here is the report CTV Pat Foran broadcast February 27, 2012: Tax refunds : The government’s plan to pay tax refunds in monthly installments to some low to moderate income earners has infuriated taxpayers who were expecting a lump-sum cheque.

When I searched Canada Revenue looking for information about this new ruling, there was no clear-cut statement — only a heading for REFUNDS. You would have to search through tax forms to find if there were directions indicating this change in ruling. BONNIE

TO: Pat Foran, Consumer Alert
CTV Toronto
P.O. Box 9, Station ‘O’
Scarborough, ON, M4A 2M9

Pat: 

This is my feedback on the income tax story on air February 27, 2012. 

To put it mildly, I’m infuriated. It’s my opinion, (I believe I’m still entitled to have one) that this is a form of discrimination, segregation, degradation and prejudice against low- to moderate-income people by denying them a full tax refund. Evelyn Jacks, a tax expert, insinuated in the broadcast, on CTV news, it will help lower income people to better budget their money. How demoralizing this sounded! In the same broadcast, this woman talks about putting your refund back into RSPS. Obviously, that right has been taken away from many people with these reforms. Furthermore, the government should be the last one to comment on budgeting. They haven’t set a stellar example in the budgeting department themselves. Stop. Ask yourself, when has the government ever done anything in the best interest of the people? For every tidbit they offer you, count on the fact they’re taking it back double somewhere else. 

Bottom line: the all-powerful CRA collects our money all year to spend the way they want. Why should everyone not continue receiving a lump sum to spend how we choose? Is this democracy or leaning more to dictatorship? Are we to be forced into taking out loans (if we even qualify) and paying interest to pay for a much needed item? Will we be forced to go to places that offer cash back on our income tax and lose a large portion of our return (if this will still be allowed)? 

Also, I believe there’s more to these reforms that we’re being told. Are they short of money due to mismanagement of funds, paying out huge severances to fraudulent government CEO’s, immigration, undeserved pensions for two terms in office, billions of dollars sent to aid other countries, bailouts, or paying huge amounts for reports and consultations that are ignored? You get the picture. 

I was curious what the cost to all taxpayers was going to be to issue these monthly cheques and if the CRA would need to hire additional staff to handle this, so I called the CRA. They referred me to the Ontario Ministry of Finance who I talked to March 2, 2012. Apparently there will be no additional cost or staff required. Should we believe this? I think not. Everything costs. Look at it this way: if you were to receive say $100.00 tax refund and this was paid to you over 12 months, at $8.33 per month, after wages, hydro, equipment, supplies, etc. are figured in, what if this cheque now costs $20.00 to issue each month times how many people every month. The costs are probably staggering, and not just the low- to moderate-income people’s taxes are paying this, every tax payer is. To top it all off, we’re to be grateful for this pittance, which doesn’t justify the amount of all taxes we’re required to pay. 

The CRA did confirm we won’t be receiving interest on our tax refund. How stupid do they think we are? They collect our tax money and spend it all year and I’m sure receive interest from their account, then have the audacity to dole it out in monthly payments to us for a year without interest. However, they have no problem charging interest if you owe them. 

Why should this group of people have to wait until the summer of 2013 to receive all of their 2011 refund and without interest? 

Here’s a novel idea. Why not abolish all the tax credits such as HST, OST, The Child Tax Credit, etc. Once this is done and we have no need to pay all the expenses it takes to operate this sort of program, or the taxes to support them, the money that’s saved could go back into all tax payers’ pockets by lowering the amount of tax they pay. Let the government try “BUDGETING” on less. Oops! Slipped up here didn’t I? Of course this won’t happen as the government would have less money to keeping bailing themselves out of their own stupidity. 

I am submitting my email address for input from people: janew_csr@rogers.com. I hope to get an overwhelming response. “You can fight City Hall” a program aired by W5 recently, regarding the CRA and their unethical behaviour proved it could be done. The powers-that-be bank on the little people being too poor or too uneducated to fight back. Ask yourself why we’re poor. Do you think it could have something to do with out-of-control government spending, corruption and dishonesty at every level of government? 

Do we continue to sit back, and have our future generations fighting as they have in the Middle East to oust corrupt governments? Not my idea of a great legacy to leave. 

We have become a very apathetic country because of everything we’ve had shoved down our throats by government. Too many of us have given up. Stand up and be heard. Win or lose at least I can take pride in trying. 

Land of milk and honey be damned! Our past and present governments have made sure there’s very little, if any, left for us. 

Sincerely, 

Jane Whitney

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About Bonnie Toews and John Christiansen

Bonnie's Blog Posts invite our readers and free spirits everywhere to share life's adventures with us. I talk about writing my novels, reading books, chatting with other writers and John's and my journeys around the world. We welcome your anecdotes to our experiences and discussions.
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16 Responses to HEADS UP! This protest reveals all low-income earners including pensioners hit by new Canada Revenue ruling

  1. I was saddened to read this post, and know the Canadian government is treating it’s people as poorly as they are treating us here in America. I wonder how long it will take for one of our president’s csar’s to implement this idea into our own economy, which is shaking at the roots. The entire world is changing, and not for the better. We must all speak up before it’s too late and we’ve reached the point of no return.

  2. Murray Scott says:

    If it was April I would yell April Fools…….I just can’t see that happening…for example…when a person buys RRSP. to offset their Taxable Income…the refund is used to pay it back ….to keep the RRSP functional depends on this ….also people borrow for the RRSPs and use the refund to pay it back…..Should the refund be paid on a monthly partial payment…..the RRSP system would collapse….it would require the Govt. to give notice and publish their intent…so my money so to speak is it aint going to happen…
    All the best fellow tax-payers
    Murray Scott
    Edmonton Alberta

  3. Bonnie Toews says:

    Murray, that is what I thought too, but it is already happening as Pat Foran demonstrates in CTV report. My neighbor, who is so incensed, has contacted the CRA and this is exactly what is happening. H&R Block has told my brother this is what is happening this year, and they cannot pay him a lump-sum refund as he is accustomed to receiving. He is justifiably angry. This ruling defies all logic, but based on the way veterans are treated, can we really say the Harper government actually uses logic to administer its whims?

    Bonnie

  4. Bonnie Toews says:

    By the way, we’re not talking about RRSP refunds here. This ruling applies to all people who make below $35,000 per year — under the poverty level. This demographic group can’t afford RRSPs, let alone benefit from them. Many of them them are used to receiving lump-sum refunds after tax return submissions ranging from $100 to more than $700. Anyone who earns more than $35,000 per year still receives a lump-sum refund. Where is the fairness in this treatment of our poor?

    Bonnie

  5. Bonnie I was shocked to read this report. I am a person who depends on my lump sum to catch up on bills such as public service or medical bills that are unpaid. This will not help the poor budget better as they stated in their report it will just make it worse for the poor. Their heat or electricity may be turned off because they can’t pay before the March or April deadline. Then to be turned back on they will have to pay to get reconnected and possibly have to pay a deposit.

    In my opinion it is just another way the government is trying to keep all the control over the people.

  6. Bonnie Toews says:

    Leslie, you are American. This is a Canadian tax ruling. I don’t know if the same change applies in the U.S., but you’ve hit the nail on the head for low-income earners and added other dire outcomes to the ones Jane has listed.

    Bonnie

  7. Len Colp says:

    The idea to return low income tax payers money in small payments ovwer the year has nothing to do with helping them manage their money. It has all to do with the MPPs grabbing the money of the poor to give them another year of interest free money to blow on the big bills they have run up since Bob Rae days.

    The governement has collect taxes through the year and used it interest free since the days that income tax collection began. Now they see another way to hold unto our money for another year
    using it another 12 months interest free.

    Perhaps the MPPs should take a 20% cut in their own high incomes, after it was they who blew the money!

    • Murray Scott says:

      You may find this interesting:

      How CRA applies your refund If your total payable on line 435 of your return is less than your total credits (line 482), the difference is your refund on line 484. Generally, if the difference is $2 or less for 2011, you will not receive a refund.

      Although you may be entitled to a refund for 2011, we may keep some or all of it to:

      apply against any amount you owe us or are about to owe us;
      satisfy a garnishment order under the Family Orders and Agreements Enforcement Assistance Act; or
      apply against certain other outstanding federal, provincial, or territorial government debts, such as student loans, Employment Insurance and social assistance benefit overpayments, immigration loans, and training allowance overpayments.
      Can I transfer my refund?
      If you pay your taxes by instalments, you can attach a note to your paper return to ask us to transfer your refund to your instalment account for 2012. We will transfer your full refund and consider such a payment to have been received on the date that we assess your return.

      Your refund cannot be transferred to pay another person’s balance owing.

      When will we pay interest?
      We will pay you compound daily interest on your tax refund for 2011. The calculation will start on whichever of the following three dates is latest:

      May 31, 2012;

      the 31st day after you file your return; or

      the day after you overpaid your taxes.

  8. Bonnie Toews says:

    Ah, BIG BROTHER is healthy and well running the little folks’ affairs for them. Excuse my saracasm please. The bureaucrats are milking the most vulnerable in our society, not helping them. What crap shooters! I’m beginning to think that in order to qualify for a bureaucrat’s job, you have to fit a sociopath’s profile. It’s the only thing that explains the unconscionable behaviour and attitude behind such decisions and rulings.

    • Murray Scott says:

      You are correct ….big brother is finding anyway they can to target the low income …they did it with the GST and now they are doing it with other tax breaks such as rent and energy ….
      They do it because they can…The odd part is I have not heard any opposition by any party.

  9. Bonnie Toews says:

    Could it be they are snoozing, Murray?

  10. Santiago says:

    This is another small unannounced conservative item that Mr Harper and his sidekick
    Mr.Flaherty (remember him… he did a nice number to us Ontarians) have drummed up to control canadians with the auspices to “help us save” and control the budget but have forgotten to tell us (same as pension reform??). Does Mr Harper really care?? Umm NOT!!! Canadians have to realize….Harper wants control and it’s his way or no way… What a great mistake canadians made in electing him….Oh I forgot…I might get tracked on the internet for these comments….so be it!

    • margwood64 says:

      This is 2013 Not only has the Ont. Provincial Government gone back on their word to give people a choice, but the Harper government has done the same thing for mid to low income earners. There seems to be a war on low income earners everywhere! I put out a petition but got no signatures except from friends so I deleted it! The new Ont finance minister said there will definitely be a choice next year. I sent emails to all parties in both Fed. and Prov. Governments.

    • margwood64 says:

      Is this an update for 2012 tax returns. I told people a while ago that the Feds did it to us too. They didn’t believe me. I had a petition an hardly anyone signed. I am fed up! The new Provincial finance Minister said he will change it and we will have a choice I hope he is trustworthy not like the last one! Harper is a control freek!

      On Mon, Mar 4, 2013 at 4:14 PM, Homecoming Vets at the Crossroads of Humanity wrote:

      > ** > Santiago commented: “This is another small unannounced conservative > item that Mr Harper and his sidekick Mr.Flaherty (remember him… he did a > nice number to us Ontarians) have drummed up to control canadians with the > auspices to “help us save” and control the budget but h” >

  11. Paige says:

    Bonnie it is great that you have created a platform to dialogue about this abuse of power; what can people do about it though. Have you tried lodging a Human Rights complain? Try looking at Revenue Canada Agency: Code of Ethics and Conduct: scrole down to bottom under the Title of Publications. •RC17 Taxpayer Bill of Rights Guide: Understanding Your Rights as a Taxpayer
    Cheers!

  12. The hard truth is this inequality cannot be resolved by peaceful
    means. Powerful In no way give up power without force.

    They possess the military plus the police in their pockets just like that have financial institutio-ns plus
    the government-, including the courts in their pockets.
    So now the truth is exposed. Now what do we or can we do about it?

    I’m afraid demonstrat-ions and petitions will be inadequate to change this system.buy diablo 3 gold

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