Hi Ryansmom

As a retired Income Tax Consultant and former university tax professor, I feel qualified to answer your questions re: funds deposited into your account by a previous employer. But first, I will require more information than you supplied on your blogs.

Here are the questions. Based on your response, I will answer your queries complete with supporting documentation, chapter and verse, with quotations from the Income Tax Act (Canada).

1. In which year did you receive these funds deposited into your joint bank account?

2. For which year do these funds pertain to?

3. How much was deposited into your joint bank account?

4. If these funds were received prior to 2010, were they included on a T4 slip? (Income from employment)

5. Did you file an income tax return for the year in which you received these funds?

6. Did you receive a Notice of Assessment from CRA (Canada Revenue Agency) for the year in which you received these funds (assuming that you filed an income tax return for this year)?

7. Was the Tax Payable shown on the Notice of Assessment the same as you showed on your copy of the income tax return (assuming that you filed an income tax return for this year)?

8. If you did not receive a T4 slip for these funds received and you filed an income tax return for this year, did you voluntarily add this amount to your income tax return as income from employment?

9. Did you perform any services for the company in the year in which these funds were deposited into your joint bank account?

If you can truthfully answer these questions, then I can tell you what your options are under the Income Tax Act (Canada). I will also be glad to respond to your concerns regarding the collection agency.

P.S. Any employer, past or present, who can demonstrate a need to receive a credit report from either Equifax or TransUnion and pay their required fees, can receive a credit report on any consumer. This is authorized in the Ontario Consumer Reporting Act. I see that you reside in NB, but I am sure that your province has similiar legislation

P.S. 2 Can you give me more information about money being transferred into your son's bank account? Who has been giving you repeated warnings and why? If you can provide more details, I may be able to shed some light on this subject.

Good Luck and have a GREAT DAY

Hi Ryansmom. I do not know if you have to pay it back or not, but I was in a similar situation a few years ago when my employer gave a few thousand of us more money than we were entitled to. I payed it back, but people who waited until the next year were in a mess with Revenue Canada. It should be taxed as income, so you have to declare it as income in the year you received it, and my end up paying tax on it. But the next year when you pay it back, then I do not know what will happen. I suggest you call revenue Canada to check to see if what I have said is correct, and get more info as well.

hey paul..

Mr Lemon was uninvited from the forum... IE.. I booted him... we need constructive people here.

HEY LEMON..YOU HAVE A BIG MOUTH..YOUR PRETTY TOUGH SITTING BEHIND THAT KEYBOARD..MAYBE WE COULD MAKE ARRANGEMENTS TO MEET SOMEWHERE FACE TO FACE.I'M IN PEI.WHERE ARE YOU????TRUST ME MY FRIEND..YOU WOULD FIND OUT WHO THE LOSER IS!!!!

So if someone accidentally left their wallet at your house and you spent all that money, then they wanted their money back, would you say that's immoral and greedy and wrong?

It's greedy and immoral and wrong to spend money that doesn't belong to you. You should be ashamed. Pay it back, and you will not be as much of a loser.

Drop dead.

I still don't know how it could effect my credit. From what I've been told, creditors (lendors) are the only ones who can have information forwarded to the credit bureau. A former employer is NOT a lendor so they do not and cannot get access to the credit bureau information.

I'm surprised this company has sold the debt to a collector...obviously they really didn't feel they could collect from me. And the other thing....when I transfer money into my son's bank account, I get repeated warnings asking me if I am POSITIVE I want to do this transfer. It cannot be reversed. It cannot be stopped or corrected. So I would think this cheque was the same!

I know it's greedy and morally wrong......I'll deal with that issue seperately.

That's their problem.Same thing happened to me 5 years ago with mbna depositing 7500 bills in my account.I had that spent in a hurry.they threatened me with legal action and i told them to go f** themselves and i'd see them in court .they would only go sue if you were in the ottawa area. .that's why they're in the shape they are today..bunch of f'in stiffs employed there lol!!!

I agree it is greedy/wrong. You should arrange to pay it back if it was an error.

RE: credit; it may not be on there now but it could catch up to you eventually and that would cost you problems if you are a homeowner with a mortgage come renewal time.

Over a year ago, money was deposited into my bank account by a company I worked for 5 years previously. I work 3 jobs and share the account with my husband so I did not notice the money. It was spent of course! The company caught the error many months later and called me to collect. I said I would check my bank statements and get back to them. This has now gone to a collection agency (in another country!!).

Since the agency does not have any information on me (like they would with a loan or with a credit card), will this effect my credit rating? I don't understand how it could. I checked my credit report recently and there was nothing on it.

Do I legally have to pay this back? I know it's not my money but part of me thinks it's like finding cash on the street! Greedy I know. I don't have $800 to just hand over to a company. If this would effect my credit rating, would paying the bill help it? I don't think so.