Bug in Profile? Non-business foreign taxes paid.
Recently the CRA asked two of my clients to verify „Non-business foreign taxes paid”. Both of them received a foreign pension in 2021 and paid foreign taxes, which I converted to Canadian dollars.
According to the CRA letters, in both cases the “amount under review” of the foreign taxes was, for totally inexplicable reasons, much higher than the amount I entered. Indeed, when I took a look at form T2209, on line 43100 the amount was the same that the CRA had: it was totally different from the amount I entered and it was NOT correct! However, once I unlocked the return, the amount reverted to the correct amount!
The good news is that even though the amount was wrong, once it reverted to the correct amount, the tax calculations (i.e., refunds/balance due) did not change—so they must have been based on the correct amounts after all.
However, now I have to explain this to the CRA each time a client is asked to verify the amount of foreign taxes paid.
Please, take a look at this issue and correct it! Also, it would be a great idea if Profile could provide a letter for the CRA explaining this issue—I could mail such a letter to the CRA.
