The Government was after me!

In 2015 I received a letter to inform me that I had to pay the Provincial Government (Govt) 10 000$. I called the number for information as I had no idea what this was about. It was explained to me that I did not pay my taxes from 2012 and I had to pay them or else they (Govt) would do a A WAGE GARNISHMENT! It was clear at that point that the Government was after me.

Here is my story and I hope that for those of you living in Canada or have a similar process will take note and hope that this can help you out.

History

I was a consultant for 10 year before this unpleasant adventure happened. I was incorporate with a company (CO) number and was working for the Govt for many year. During the year of 2011 the best opportunity opened up to me, someone knocked on the door and I opened it. I was offered a full time position as a federal employe. For me this was gold, I was dreaming about this for years, pension plan, holidays and medical care.

After being hired, my CO was not being used anymore, I decided to close it off. All the documentation was sent to me with confirmation that my company was closed, the money in my bank account was transferred and my bank account closed.

All those steps where taken in 2011, so why then did I have to pay taxes for the year 2012 as my company was no longer being used and closed off?

What went wrong?

Why 10 000$? Well after speaking with the Bailiff, because I did not pay for my year 2012, they (the Gov) took for granted that it was the same amount as the years before with some interest added to it. I came to an agreement with the Bailiff and payed 3 000$ until this gets resolved as I did not want to have a wage garnishment, but I had 2 weeks to clear things up with the Government. I do have to point out the the Bailiff was very nice and helpful in helping me resolve this situation, I don’t think a lot of them would help out the way he did. He gave me the number to speak with someone on the Provincial side to clear things out and this is what I learned; my request to close of the company was done on the Federal side, therefore, the provincial side where still seing my CO as active because for the Provincial to see my CO as terminated, it has to be dissolved and this is another process.

Dissolved Process

Compare to the Federal process, the Provincial steps to get your company dissolve requires you to pay 80$ that you have to send with the form to the Government (if you ask me, this is just another way to make extra cash). After sending the form and the other papers from the Federal side confirming the date that my company was closed ont their end, the Provincial Government finally sent me my dissolved certificat for my CO and cleared the bill. But wait, I gave them 3 000$, what was to come of that?

I spoke to the Bailiff and he said that a check would be returned to me with the full amount. However, what he did not tell me is that the check would be under my CO name. I called back saying, I did receive the check but I cannot cash it, my bank account under my company name is closed as you and the Govt are aware. The answer I got back was that the Audit was for my company and not myself, although the 3 000$ check I sent them was from my own personal account.

I was redirected again the the Provincial Govt, explained the situation and the answer I got was; Well to cash the check, you will need to re-open the company and open again a bank account for the company.

Cashing the Money from my Company

If you don’t know, getting a CO number is about 400$ if you have good contacts with lawers or in French “notaires”. There was no way that I would go through that and pay again 80$ to have the company dissolved one more time after I cash in the money.

I called my financial adviser, explained the situation and the solution was simple. She vouched for me and explained the situation to her manager. Both of them agreed and because they recognized that the check was under my company name that I closed off, they did cash in the check under my name and I was able to get my 3 000$ back and I never heard or got bothered again by the Govt regarding my CO taxes.