Maybe she withdrew funds from an RRSP account for living expenses? If she is low income the automatic withholding may have been too much and she will get some of it back.
Is it possible she has already paid tax on her earnings (or the place that pays her did it) even though she is supposed to be a contractor (or just thinks she is)?
Possibly a stretch, but if she was receiving any government benefits maybe she is getting the withheld tax back (in my case I am being refunded the tax from my EI parental leave benefits because they withheld too much for my actual income level).
1) I do not think so, she went straight from school to work
2) Not at the clinic we are both at, we are both contractors there for sure. There is a slight chance she is an employee elsewhere, but it is SUPER unusual in our jobs
3) I admire your dedication to this thought exercise. Possibly she has a secret dependent I am unaware of, and took some kind of EI leave. I might suggest that niceclinicowner has this discussion in a mentoring way.
Man, my eyes went round when I read your OP. No tax, maybe, but no CPP? Not unless her net income is less than $3500 a year.... or she's making $53000 as an employee elsewhere. Thing is, even if she just ignored the CPP schedule, Rev Can should have caught it and dinged her.
I remember trying to explain amortization to another contractor.
She: "I paid no taxes this year."
Me: "Oh? How did you manage that?"
She: "I had lots of write-offs. Like that $13,000 thing I bought."
Me: "You can't write off $13,000 thing all at once in the year you bought it. You have to spread it over years...blah blah different classes blah blah."
She: "I can so write it off! I'm a
doctor."
They never caught her, and she's probably still doing it.
