Document text
Request to Review OAS Recovery Tax Deductions for Financial Hardship
[YOUR FULL NAME]
[YOUR ADDRESS, CITY, COUNTRY]
Social insurance number: [SIN]
OAS account / client number (if any): [NUMBER]
Telephone (with country code): [PHONE] · Email: [EMAIL]
Canada Revenue Agency
[ADDRESS SHOWN ON YOUR CRA LETTER ABOUT DEDUCTIONS, OR: Sudbury Tax Centre, PO Box 20000 Station A, Sudbury ON P3A 5C1, Canada]
[DATE]
Re: Request to reduce Old Age Security recovery tax withheld at source — recovery period July [YEAR] to June [YEAR] — undue hardship
Dear Sir or Madam,
I receive the Old Age Security pension of $[MONTHLY OAS AMOUNT] a month. Since [MONTH AND YEAR], $[MONTHLY DEDUCTION] a month is withheld as OAS recovery tax, according to your letter dated [DATE OF CRA LETTER]. [IF NON-RESIDENT: I live in [COUNTRY], and non-resident tax of $[AMOUNT] is also withheld.] I now receive $[NET MONTHLY AMOUNT] a month.
The deductions are based on my income for [BASE YEAR]. My situation has changed:
[WHAT CHANGED — FOR EXAMPLE, ONE-TIME INCOME IN THE BASE YEAR, RETIREMENT, LOSS OF A PENSION, ILLNESS, DEATH OF A SPOUSE]
My estimated net world income for [CURRENT YEAR] is $[ESTIMATED INCOME], compared with $[BASE YEAR INCOME] in [BASE YEAR].
My essential monthly costs are $[MONTHLY COSTS] (housing $[AMOUNT], health care $[AMOUNT], food and utilities $[AMOUNT]), against total monthly income of $[TOTAL MONTHLY INCOME].
The current deductions cause me financial hardship. Section 180.2 (6) of the Income Tax Act applies subsection 153 (1.1) to OAS recovery tax, which allows the Minister to determine a lesser amount to be withheld where withholding would cause undue hardship. I ask you to review my situation and to reduce the monthly OAS recovery tax deduction to $[REQUESTED AMOUNT, OR "NIL"] from [MONTH AND YEAR].
[IF YOUR INCOME HAS DROPPED:] I enclose form T1213(OAS), Request to Reduce Old Age Security Recovery Tax at Source, for [YEAR].
I have filed my returns for [YEARS], and [I HAVE NO BALANCE OWING / I HAVE PAID THE BALANCE OF $(AMOUNT) ON (DATE)].
Enclosed (copies):
[CRA LETTER ABOUT THE DEDUCTIONS]
[PROOF OF CURRENT INCOME — PENSION STATEMENTS, BANK STATEMENTS]
[PROOF OF ESSENTIAL COSTS — RENT OR MORTGAGE, MEDICAL BILLS]
[FORM T1213(OAS), IF ENCLOSED]
Please reply in writing to the address above. You may also call me at [PHONE].
Yours faithfully,
____________________
[YOUR FULL NAME]
For me
[ ] Old Age Security Return of Income (non-residents) filed by April 30, so payments do not stop in July
[ ] T1213(OAS) only covers one July-to-June period; send a new one next year if nothing changes
[ ] Copies, not originals; sent on [DATE] by [MY ACCOUNT / MAIL / FAX]