As Per CRA:
Line 484 - Refund
If your total payable (line 435) is less than your total credits (line 482), enter the difference on line 484. This amount is your refund. Generally, if the difference is $2 or less for 2006, you will not receive a refund.
Note
One person's refund cannot be transferred to pay another person's balance owing.
Although you may be entitled to a refund for 2006, we may keep some or all of it to:
- apply against any amount you owe us or are about to owe us;
- satisfy a garnishment order under the Family Orders and Agreements Enforcement Assistance Act; or
- apply against certain other outstanding federal, provincial, or territorial government debts, such as student loans, Employment Insurance and social assistance benefit overpayments, Immigration loans, and training allowance overpayments.
If you pay your taxes by instalments, you can attach a note to your paper return to ask us to transfer your refund to your instalment account for 2007. We will transfer your full refund and consider such a payment to have been received on the date that we assess your return. To view your refund information, visit My Account.
You may choose to have your tax refund deposited directly into your account at your financial institution in Canada. For more information on this option, please see direct deposit.
We will pay you compound daily interest on your tax refund for 2006, starting on whichever of the following three dates is latest:
May 31, 2007;
the 31st day after you file your return; or
the day after you overpaid your taxes.
Frequently asked questions
I sent my return today. When can I expect my refund?
I have closed my bank account and wish to have the direct deposit information on file with CRA cancelled and replaced with new information. How do I do this?
Completing your tax return
Subtract your total credits (line 482) from your total payable (line 435). If the amount is negative, you have a refund. Enter this amount on line 484. This is your refund.
Forms and publications
General Income Tax and Benefit Guide
Form T1 - DD(1), Direct Deposit Request - Individuals
Paying Your Income Tax by Instalments pamphlet (P110)
Related topics
Line 476 - Tax paid by instalments
If you read your Notice of Assessment, you will see exactly why part of your refund was withheld.
Hope this information helps you.
http://www.cra-arc.gc.ca/tax/individuals/topics/income-tax/return/completing/deductions/lines409-485/484-e.html
ADDITIONAL INFORMATION @ 7:12 PM EDT
I just read the response from taxman, so I will comment on what he stated.
There is no way that the amount withheld has anything to do whatsoever with how the 2006 tax return was prepared, and whether or not it was discounted at the time of completion.
CRA's website link regarding tax discounting is:
http://www.cra-arc.gc.ca/E/pub/tg/t4163/t4163-e.html#P63_3726
AS PER CRA:
Discounters prepare tax returns and provide their clients with an immediate discounted tax refund before filing the returns.
Discounters keep part of the expected refund as a fee and pay the rest immediately to their clients. Fees charged are limited by the Tax Rebate Discounting Act.
What is the Tax Rebate Discounting Act?
The Tax Rebate Discounting Act regulates the practice of tax discounting. Its purpose is to protect the rights and interests of individuals who use discounting services to get their income tax refunds.
Subsection 2(1) defines the term "client" to mean a person from whom a discounter acquires a right to a refund of tax to which that person is entitled. The term "client" used in this guide and on the forms relating to discounters also has the same meaning.
The Tax Rebate Discounting Act requires that you, as a discounter, pay the client (at the time the discounting transaction took place) at least:
85% of the estimated refund, if it is $300 or less; or
$255 plus 95% of the amount over $300, if the estimated refund is more than $300.
The discount includes any fees that you, or another person or company acting for you, may charge for preparing the client's return or for any other service related to the discounting transaction.
Discounters who pay their clients less than the above-mentioned amounts are guilty of an offence.
So, as you can plainly see, your refund shortfall has absolutely nothing to do with WHO or HOW the return was prepared, or whether or not it was discounted for that matter.
I hope this additional information helps you.