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The T1198 tax form shows how the pay equity payment is divided over past years, and will allow the Canada Revenue Agency to determine if this special tax calculation is beneficial to the individual. In order to request this calculation, you cannot file your income tax return electronically and must file a paper return.

The Form T1198 ? Statement of Qualifying Retroactive Lump-Sum Payment is a form you submit to the Canada Revenue Agency (CRA) if you received a lump sum payment and would like them to complete a special tax calculation that takes into account the unusual nature of this lump-sum payment.

To register your court order or written agreement, follow the instructions on Form T1158, Registration of Family Support Payments. Do not include your order or agreement with your tax return.

You or your authorized representative can make a request to cancel penalties or interest online using the CRA My Account, My Business Account or Represent a Client services by selecting ?Request relief of penalties and interest? under ?Related services.? Alternatively, you can fill out Form RC4288, Request for Taxpayer ...

The income received on form T1198 - "Qualifying retroactive lump sum payment" must be included on slips T4, T4A or T4E of the beneficiary and included in the tax return.

A ''Qualifying Retroactive lump sum payment'' is a lump sum that is paid to an individual (other than a trust) in a year and that relates to one or more prior eligible taxation years during which the individual was a resident of Canada throughout the year.

Just like regular pay, retroactive pay is subject to taxes, including: Federal income tax. Provincial income tax. Local income tax.

If you have a balance owing, the CRA may keep all or a portion of any future payments, tax refunds or GST/HST credits until the amount is repaid. You can pay your debt online, at your financial institution or by mail. The CRA will apply your payment toward your oldest ESDC debt unless you request otherwise.