I have a new client who came to me in a panic. She had her tax return done by another accountant who told her she owes $100,000 in taxes! I went through her documents and realized she moved her LIRA to her RRSP because she retired. She received a corresponding RRSP slip for the amount but she doesn’t have the RRSP room. I know there’s been chat about similar situations on this board. Is it possible to get around the RRSP room given that it’s a direct transfer?
You do not need to have any RRSP room to transfer from a tax sheltered plan to another tax sheltered plan.
I have a bunch of comments I could make (which would involve asking more questions) … but this link likely gives you the confirmation you are looking for.
Don’t even get me started! I am appalled at the errors this accountant made! First of all, he put ALL the slips for the wife on the husbands return and filed it without getting the T183 signed or informing the client. Then he filed the wife’s return with that critical error and several slips missing, again without the signed T183. He sent her the return and told her to pay $100 grand with no explanation! Can you imagine? So now on CRA’s systems, both the husband AND the wife each owe $100 grand.
This accountant must have realized he made an error because the next day filed adjustments (again without notifying the client). CRA has yet to process the adjustments so I don’t know what he adjusted and I can’t re-FILE until that is assessed.
I did a quick google search on this accountant and he’s registered under a corporation and his title is “Certified Professional Accountant”… Made up designation doesn’t even exist!
You can tell I’m angry. I told the clients to immediately remove him as an authorized representative but also suggested they issue a complaint against him.
