"The fact that a particular claim is allowed at this point does not mean that the CRA … is 'letting' you claim it," notes KPMG in its annual tax-planning guide. Myth 2: The CRA completely agrees with the information you submitted in your return if it sends you back a Notice of Assessment that doesn't dispute what you submitted.Ī Notice of Assessment is just the result of a quick assessment that will have fixed mathematical mistakes you may have made. But it doesn't mean that the CRA has examined and OK'd everything you've submitted. It's a way of ensuring couples don't shift interest income from a higher-earning spouse to a lower-earning spouse. "Where more than one person contributed capital in their own right, then the income in the account must be allocated based on the capital provided by each contributor," she says. Not necessarily. Income earned in joint accounts must be reported by the person who earned the money, says tax expert Evelyn Jacks in her book Jacks on Tax. Myth 1: The person whose name or social insurance number is on the tax slip is the person who must report the interest in a joint account. Here are some common myths - and the corresponding facts that could mean extra money in your pocket, or at least could prevent you from running afoul of the Canada Revenue Agency's rules. File by April 30 or face potential penalties.
But many of those age-old perceptions are no longer accurate. A certain amount of folklore has developed over the years around the income tax system and the filing of tax returns.