I am self-employed and I owe GST and QST. If I go bankrupt, will the government claim these amounts from my clients since they used these sums as inputs in their tax returns?
No. It is not your clients' responsibility to remit the taxes they have paid you, but yours.
Questions reliées
- Are debts to the government (source deductions, taxes, unpaid GST-QST) included in bankruptcy, or must they be assumed for life?
- Are the 50% penalties for failing to declare income for income tax, GST, and QST purposes included in bankruptcy proceedings?
- Are the 50% penalties for failing to declare income for income tax, GST, and QST purposes included in bankruptcy proceedings?
- As a self-employed individual, I file a single annual tax return that includes all my income (I don't operate a company; I'm only registered). My question is: After filing for personal bankruptcy, in which I would have included my outstanding income tax and GST/QST arrears, will I still need to keep the supporting documents used to file my tax returns for the previous six years, as required by law, or can I dispose of them? I ask because I assume that anything prior to the bankruptcy date would no longer be recoverable by the government, which is itself one of my creditors, and I don't know if they could legally review the years prior to the bankruptcy and demand payment if that were to happen.
- Here's my situation: I owe $6,000 to Revenu Québec and $3,000 to the Canada Revenue Agency for taxes from previous years. I'm currently repaying another $3,000 personal loan. I can't afford to pay all of this. My wife and I have a combined income of $80,000 per year. I contacted Revenu Québec, and they offered me a 12-month payment plan, which is impossible for me. I don't own a home; I pay rent. Should I declare bankruptcy?
