Help!!!-Child outside Canada but funding being met

[millwoods123]

Hello, I have a few questions which I am hoping to get answers for
My spouse and I are permanent residents of Canada with a 3 years old daughter. My daughter has been living with my wife's mom in the United States for the past 1.5 years. We recently got a review letter asking us to provide CRA with our address proof from past 3 years which we can as we have been living in Canada. Since we receive Child and Universal tax benefits for our daughter:
#Will CRA deem the benefits being properly used if we have been sending money on regular basis to my mother in law in order to meet the child's daily expenses?
#What consequences might I face with the CRA if it is not satisfied with the first question?
#I understand from the child tax benefit about the conditions to be met in order to qualify to continue receiving CCTB. If I have valid reason like my wife started studying and we couldn't afford to bring her back, would that satisfy them?
Would appreciate help from the members who may have experienced such kind of scenarios and what was the outcome.
Regards!!!!

 

[torontosm]

Hello, I have a few questions which I am hoping to get answers for
My spouse and I are permanent residents of Canada with a 3 years old daughter. My daughter has been living with my wife's mom in the United States for the past 1.5 years. We recently got a review letter asking us to provide CRA with our address proof from past 3 years which we can as we have been living in Canada. Since we receive Child and Universal tax benefits for our daughter:
#Will CRA deem the benefits being properly used if we have been sending money on regular basis to my mother in law in order to meet the child's daily expenses?
#What consequences might I face with the CRA if it is not satisfied with the first question?
#I understand from the child tax benefit about the conditions to be met in order to qualify to continue receiving CCTB. If I have valid reason like my wife started studying and we couldn't afford to bring her back, would that satisfy them?
Would appreciate help from the members who may have experienced such kind of scenarios and what was the outcome.
Regards!!!!

Does your daughter visit you regularly for extended periods of time (i.e., summer holidays)? If so, that may help your case.

In general, you do not qualify for the CCTB since your daughter does not live with you, and you are not the primary person responsible for her care and upbringing. Typically, as consequences for claiming benefits that you do not qualify for, the CRA demands a full repayment of historically claimed amounts plus penalties. They do not usually provide exemptions for circumstances such as the one you mentioned.

 

[millwoods123]

Thank you Torontosm for the answers.
My daughter did visit us a year ago for about 45 days and again went back. Now she is back permanently. Since you've been kind enough to help, I'd like to pose a few more questions. If CRA demands full refund back
#Will they demand only the UCTB and CCTB? Or will they demand back the GST/HST return as well?
#Will they demand money back in full at once along with penalties or will they give me payment option?

I appreciate your help.
Kindest Regards

 

[torontosm]

Thank you Torontosm for the answers.
My daughter did visit us a year ago for about 45 days and again went back. Now she is back permanently. Since you've been kind enough to help, I'd like to pose a few more questions. If CRA demands full refund back
#Will they demand only the UCTB and CCTB? Or will they demand back the GST/HST return as well?
#Will they demand money back in full at once along with penalties or will they give me payment option?

You are still eligible for the GST/HST credit, even if you don't live with your child (http://www.cra-arc.gc.ca/bnfts/gsthst/fq_qlfyng-eng.html) so you should be fine there

CRA is usually quite reasonable in arranging deferred payment plans, so I doubt you will have to pay the entire amount at once, if it comes to that. Once things have been determined, you can try to negotiate with them for a monthly payment plan.

I would mention to them that your daughter came and stayed with you for 1.5 months, as you may be eligible for a partial credit for that period.

 

[millwoods123]

Appreciate your help torontosm.
Thank you!