A while back I explained an unusual stock option-related situation where it is possible to buy the sell stock and end up owing more in taxes than the proceeds from the sale. The latest federal budget has remedied this situation by limiting the tax owed to the proceeds of the sale. However, this budget is not yet law.
This brings me to the question of how reasonable CRA plans to be about this. I’m in a situation where I owe a very large sum under the current tax rules, but once the budget becomes law, I can refile my 2009 taxes to owe a much smaller sum. As the transition of the budget into law is largely a formality, it makes little sense to send CRA a lot of money only to get it back soon.
After penetrating many levels into CRA’s help system, I was told that in fact I could just pay the lesser amount and my return would be held until the budget passes (as long as I file the return along with some special forms to ask for special treatment). This sounds very reasonable, but I have no assurance that things will actually work this way. It will be interesting to see whether my return will in fact be held or whether CRA’s collection system will be aimed at me.
There are many people in the same situation I’m in. I won’t be surprised if some have their returns held and others don’t. I’m hoping I’m part of the lucky group.