How does a trustee know that the correct income is reported?
I am inquiring regarding how the trustee monitors what income is provided on the monthly worksheets. I have a colleague who claimed bankruptcy. He has since quit his job but is now working another job but is not reporting this income to his trustee.
Does the Canada revenue agency share tax information with the bankruptcy trustee? Or does the trustee require a copy of the tax filing?
What he is doing is wrong. If the trustee has no way of finding out about this income, I feel it is my duty to report it.
The trustee can confirm the bankrupt’s income in the following ways:
1) The bankrupt is required to send his pay stubs to the trustee on a monthly basis; and
2) The trustee submits the bankrupt’s tax returns as at the date of bankruptcy and for the terms from the 1st of the year to the date of bankruptcy and for the period from the date of bankruptcy to the end of the year. CRA will report any discrepancy to the trustee.
– Licensed Insolvency Trustee