Line 894 - Refund code
Line 894 - Refund code
If entitled to a refund, enter one of the following codes on line 894:
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enter "1" or leave this line blank if you want the CRA to send you the refund
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enter "2" if you want the CRA to transfer the refund to next year's instalment account
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enter "3" if you want the CRA to apply the refund to another liability (such as an expected debit from a reassessment) or to a different account. Attach a letter to your return giving instructions and the CRA will review your request
The CRA will apply the refund to any outstanding liabilities the corporation owes on the same or related business number account. Then, it will refund or transfer the excess overpayment according to the code you enter.
The CRA will do this only if all the required returns have been filed on the account and all related accounts.
Note
Under subsection 220(6) of the Income Tax Act a
corporation may assign any amount payable under this
Act. However, according to subsection 220(7) the
minister of National Revenue "is not required to pay to
the assignee, the assigned amount." As an alternative,
the CRA will review a request to send the refund to a
"care of" address. However, a refund issued in this
manner will still be issued in the name of the corporation
(see the third bullet above).
The payment of refunds and rebates will be withheld until all required returns, of which the minister of National Revenue has knowledge, have been filed.
Reference
Subsection 164(2.01)
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