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CRA trying to class my T4A SISIP / VAC wage replacement as self employment

CampCricket

Jr. Member
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I just got a letter from the CRA stating that my Manulife (SISIP) ELB and VAC Veterans Benefits are in question. Their position is that I have misreported this income under line 10400 and that if I do not provide proof of this income, they will move the amount under line 13000 and treat it as self employment or foreign income.

So I call the CRA spoke to an agent that appeared to have little understanding of tax matters and had to put me on hold several times to tell me that I made a mistake on my reporting (even though I used their preferred reporting tool Turbo Tax, and the information came directly from their CRA download site where you can import your tax slips).

I agent even verified me using the same two T4As that are apparently in question / misreported. I directed him to box 127 of the manulife T4A to show that this meant it was classed as wage replacement income. I then directed him to box 107 on my VAC T4A and the corresponding explanation that showed it as "Veterans Benefits", how this was all downloaded from the CRA website - into a tax program that populated the appropriate boxes and has been the case now for almost 10 years. So how in 2020 and 2021, did this process stop working? I then referred this brain child to the EMPL form and showed him that this form was not for self employment earnings and that the entire middle section was for other forms of income from insurance / compensation places. I then told him I was looking at the supporting worksheet for line 13000. No where on that entire worksheet was there a line item to enter income from a T4A Box 127 or 107. Those references only appear under the worksheet for line 10400.

But the agent insisted I had filed wrong / misrepresented myself and unless I provided some other type of proof, CRA was going to reclassify this income. In the simplist of terms - depending on whether its treated as self employment from a canadian source or foreign could mean them demanding at least another $1000 to $8500 in income tax. Then this information will most likely be fed into other OGD databases and could end up in SISIP and VAC halting my benefits for not reporting self employment income in excess of the $20,000 or so I think we are able to earn.... along with CPP disability following suit at this would exceed their 6400 t0 17600 dollar income thresholds.

Anyone else in the same boat? Am I a one of? Or is this another group that CRA has decided to target because they are most likely easy targets due to mental and physical impairments and would have a hard time fighting back (like the way the had gone after low income single mothers in receipt of CCB).

Please let me know as this would give others like myself an opportunity to push back in greater numbers for those that might now be up for a fight with the CRA.
Regards,
CampCricket / Marlene
 
Call CRA again, call the number that is on the letter you received, do not call the general inquiries number. Ask to speak with a supervisor. The agent is obliged to transfer you to a supervisor. All calls are recorded and not transferring you to their supervisor will get them in big trouble.

There were changes last year to what goes on line 13000, it now covers more than it used to but it looks like your income is not supposed to be on 13000.
 
Call CRA again, call the number that is on the letter you received, do not call the general inquiries number. Ask to speak with a supervisor. The agent is obliged to transfer you to a supervisor. All calls are recorded and not transferring you to their supervisor will get them in big trouble.

There were changes last year to what goes on line 13000, it now covers more than it used to but it looks like your income is not supposed to be on 13000.
During the call, I had asked the agent to put me through to a supervisor or someone at a higher level because he clearly lacked enough knowledge to help me. I phrased that pretty much like that and he accused me of being abusive. I told him I was not being abusive, I was asserting my right to speak to someone at a higher level. He then refused and told me that I was to complete the form I was sent and prove and submit supporting documentation that this is not self employment income. The. He said good bye. So I logged into my CRA account and filed a dispute online.

What is CRA expecting me to do? Call veterans affairs to tell them my T4A is not self employment income and direct them on their own tax policies? I am going to see what come out of the dispute I filed. I wonder if they will review my phone call. I always choose the option to get a survey / call back about my experience when I call any government line. Interesting that the quality control phone call never happened after this call. I think I will phone veterans affairs and manulife tomorrow to let them know what’s going on. Just in case CRA tries to declare my ELB under line 13000 somehow. Just in case this triggers a chain reaction where they feed this information to VAC and CPP…. just to stay ahead of this. I still don’t believe I am a one of. If changes were made to the worksheet to lines 10400 and 13000, it’s strange it would only affect me.
 
Do the words "Member of Parliament Inquiry" mean anything to you?
 
During the call, I had asked the agent to put me through to a supervisor or someone at a higher level because he clearly lacked enough knowledge to help me. I phrased that pretty much like that and he accused me of being abusive. I told him I was not being abusive, I was asserting my right to speak to someone at a higher level. He then refused and told me that I was to complete the form I was sent and prove and submit supporting documentation that this is not self employment income. The. He said good bye. So I logged into my CRA account and filed a dispute online.

What is CRA expecting me to do? Call veterans affairs to tell them my T4A is not self employment income and direct them on their own tax policies? I am going to see what come out of the dispute I filed. I wonder if they will review my phone call. I always choose the option to get a survey / call back about my experience when I call any government line. Interesting that the quality control phone call never happened after this call. I think I will phone veterans affairs and manulife tomorrow to let them know what’s going on. Just in case CRA tries to declare my ELB under line 13000 somehow. Just in case this triggers a chain reaction where they feed this information to VAC and CPP…. just to stay ahead of this. I still don’t believe I am a one of. If changes were made to the worksheet to lines 10400 and 13000, it’s strange it would only affect me.

So refusing to transfer you to a supervisor is a BIG no no.
You did the right thing by filing a service complaint and that will be noticed. Service complaints have to be dealt with.
 
Honestly, as someone with a file at D Med Pol awaiting a 3 b, this crap terrifies me. The PS is basically a terrorist org.
 
Was able to resolve my issue with the help of my MP. This was an error… the new guy thought he had a way to boost his stats. This was suppose to be a simple CPPD verification to ensure I still met the criteria to be on CPPD. Apparently CRA has a special office for that. I actually got another letter stating CRA was going to reclass my veterans benefits as self employment. Having my MP poke their nose in there shining a light put the brakes on that and I was contacted by a more senior supervisor. All he said was that this should have never happened and the new guy was removed from the auditing team and placed somewhere else… not sure but it sounded like code for “fired”.
 
James is a great guy, and pretty responsive to his constituents. It also helps that he really likes the military.
 
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