Can we only submit the T1 non-resident return with appropriate tax and plus the penalty if T2062 was not submitted?

The non resident failed to report a capital gain on a T2062 and did not submit tax (already reached maximum penalty), are there any consequences for not filing T2062 or should we submit both the T2062 with the non resident T1?


Answer

If the T2062 was not filed, then yes, just the non-resident return. The T2062 is a waiver to release funds, not an actual reporting of the capital gain with all outlays and expenses. The CRA should have monies on account to refund if the T2062 was not done, since the lawyer should have remitted the 25% to the CRA. If the lawyer did not hold back and the client received all proceeds, then they will have to pay out of their pocket the tax on the gains and the $2500.00 penalty.

Hope this helps.
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