Canada Revenue Agency claimed he owed over $139,000 in taxes.“It terrified me. I mean this is government. What’s the next step?” Brian Kirkham told Consumer Matters.In 2016, Kirham’s wife passed away.Her RRSPs were transferred to Kirkham’s RRSPs as spouse and beneficiary.
The transfer of funds results in a neutral tax situation where no tax is payable, but Kirkham says the CRA insisted he owed income tax on those transferred funds which were approximately $240,000.“They (CRA) assessed my tax on that total amount as if I received it as income going into my bank account and pocket to spend.