BC Dividend tax credit

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1

So far this season we have already had two assessment adjustments disallowing the BC dividend tax credit. I am guessing this has to have been computer generated on CRA’s end as the assessment have been too quick for manual adjustment. The federal dividend tax credit has been accepted.

We have called CRA and they looked at what was submitted and agree that our submission looked correct. Their suggestion was to submit an adjustment request. Our concern, now that we have two of them, is that there may be a problem on one side or the other that is going to result in a raft of these reassessments.

Has anyone else experienced this?

2

If you want, you could send me a private message here, or an email to info@taxcycle.com, with the DCNs for those 2 files and I can follow-up with our CRA contacts to see if they can find out why their system set the dividend tax credits to zero.

3

We received a response from CRA saying that it is a glitch in their system, and they should be adjusting the returns themselves and that we don’t need to do anything. We tend to be skeptical, though, so we will be monitoring these file in May so we don’t miss the opportunity to file an objection if it isn’t fixed.

4

We have also had this happen on one return, which involved a fairly large credit. No explanation from CRA, just that it would be fixed.

5

I have just checked a number of clients and I’m finding more and more instances of the credit being disallowed. Has CRA put this in writing some place? I’m anticipating some very stressed out clients who will want answers.

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6

I sent a note to our CRA contacts today asking them to confirm that there was, indeed, a system issue on their side and what is being done about it. I will post here again when they reply.

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7

I’m just wondering if there is any update on this. We still have clients with very large dividends to do and with conflicting information from CRA we are wondering if we should hold off. In reaching out to other practitioners we have only heard of this happening with people using TaxCycle, at this point.

8

I sent a reminder email and they just replied the following:
“A system problem with BC credits was found and the system fix was put in place on Monday, the problem is no longer occurring.”

They went on to say that their IT will be monitoring incorrect assessments. No indication was given as to how long it will take before any adjustments are done to these assessments.

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9

Thank you very much.