Anyone with knowledge of QRLSP?

[ReFrame]

I'm wondering if anyone in the group has knowledge/experience with a Qualified Retroactive Lump Sum Payment (QRLSP)?

It is an alternative to netting down arrears whereby the payor can claim the payment as a deduction in the year the payment is made, and the recipient can ask CRA to calculate tax owing on the payment using tax rates as if it was paid in the years it was owed.

 

[pinkHouses]

No experience but really interested in the answer.
There are qualifier for the types of income that are eligible.

My case: Does Child Support or Spousal Support count?


What if you get a lump sum in 2022 for something that was done in 2016 and you got divorced in 2017 or would have paid more CS in 2016.

It sounds like a scenario on this would help because the rules are not clearly defined in the easy CRA "how to" s

 

[Kkc]

I just did this

basically my income dropped massively and ex refused to engage in discussions
I could not pay the full amount
eventually arrears were taken from the money in the matrimonial home

the money was the accumulation of period SS payments over the last 13 months

for 2021, I claimed the full amount under the order and am waiting for CRA to engage in conversation where I will have to explain and show the money flow

For 2020, I will have to resubmit to CRA and then show what happened again. At same time, I provided ex with the form filled out that she will then need to submit.

 

[ReFrame]

Very interesting - thanks for sharing!

I may be on the recipient end...dealing with arrears and adjustments my ex refused to make over the past several years...my lawyer is netting down the arrears but my concern is my ex will additionally claim as a QRLSP and I will be taxed twice. Not sure how to avoid this.

Is there a reason you chose the QRLSP route over netting down the arrears?