Hi,
I was wondering if somebody can advise me in this situation. I converted IRA into RRSP and claimed tax deduction. However CRA did review (due to unknown reasons they always review everybody in my family who does online tax return) and announce the next changes: 1) I used tax paid when took IRA out from bank as foreign tax. CRA counted as foreign tax - tax after decreasing it by US child credit that I did on 1040NR; 2) Instead of my exchange rate, they changed exchange rate into average annual one. Without any explanation (and they never asked me about that); 3) Because they were "processing" it 6month - they calculated interest for 6months.
So I really appreciate if somebody could advise me if it's possible to do anything about any case.
Problem with CRA foreign tax credit review
Moderator: Mark T Serbinski CA CPA
1. You cannot get more credit that the tax you actually paid, which was determined on your 1040NR, and included the child tax credit.
2. As to the exchange rate, you *could* argue this, if you showed them on what day you took the IRA (and the exchange rate for that day).
3. So CRA is charging YOU interest because THEY were slow? That shouldn't be.
2. As to the exchange rate, you *could* argue this, if you showed them on what day you took the IRA (and the exchange rate for that day).
3. So CRA is charging YOU interest because THEY were slow? That shouldn't be.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best