Taxing Taxing, Part 12

I’m a volunteer at a tax clinic. In Canada, your employer usually withholds taxes from your paycheque, and come tax time, the withholdings less your actual taxes owed is your refund.

A client comes in with a form saying they are exempt from withholdings, which is fine, but their employer has withheld taxes anyway. That’s not our problem — we just report it as it is — but the client won’t have any of that.

Client: “I demand that you fix this! I’m not supposed to be taxed at all!”

Supervisor: “Yes, based on the forms you gave us, you weren’t supposed to have anything withheld, but there’s nothing we can do about it. Your employer already withheld the funds and remitted it to the CRA, so at least you’ll get a refund?”

Client: “But why am I getting taxed?”

Supervisor: “Because… you earned a salary, and you get taxed on salaries?”

Client: “My form says I’m not supposed to get taxed!”

Supervisor: “Your form says you’re not supposed to have withholdings, but you get taxed just like everyone else.”

Client: “Then fix the return so that I don’t have income!”

Supervisor: “You mean… you want me to not report your salary?”

Client: “Yes, obviously, my form says I’m exempt!”

Supervisor: “First of all, again, exempt from withholdings. Second of all, I’m not going to do that.”

Client: “Why not?!”

Supervisor: “Because that would be fraud. It’s not worth my designation to do that. Plus, the CRA already has this info on file; it would be super easy to catch.”

Client: “What the h*** do I pay you for? How can you be so incompetent?”

Supervisor: “This is a volunteer clinic. You actually don’t pay us anything.”

Client: “I find you highly unprofessional, and I’ll find someone who’ll do it!”

He then promptly grabs all his documents and walks out.

Supervisor: *Turns to me* “We definitely don’t get paid enough to commit tax fraud.”

Related:
Taxing Taxing, Part 11
Taxing Taxing, Part 10
Taxing Taxing, Part 9
Taxing Taxing, Part 8
Taxing Taxing, Part 7