T3 Slip

[rsuresh]

Hi When I record the T3 slip under my spouse's name(it was issued under his name only), UFile is adding it to my income and not under his. How can I rectify this and make it appear under his income?

[TheTaxSmith]

If the income is dividends the software is optimizing your tax situation. For tax purposes dividend transfers between spouse's is an allowable and common tax advantage. This will/should explain what is happening.   https://www.taxtips.ca/filing/spousal-dividend-transfer.htm

[rsuresh]

Thanks for your reply and yes it made me understand what is happening. In my case, CRA re-assessed the tax return for previous year and did not consider that amount is added to my income, they added it again to my husband's income and made me pay taxes on this. How can I get that money back from CRA?

[TheTaxSmith]

File a T1 Ajustment and quote the tax regulation 82(3) transfer. The problem is with CRA and the way the banks send the T3 information to CRA. The slips are matched to the tax returns by a program and it spits out any differences for review. Someone at CRA that was doing a review of the file did not have the appropriate experience with that transfer rule. CRA no longer bothers with looking at understanding the situation and employees are told to just reasses and let the taxpayer call to get it fixed. Here is a link to the form https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t1-adj.html

 

[rsuresh]

Thanks a lot for your guidance. Much appreciated.🙏