We have all heard the saying that there are only two things that you can’t avoid in life and they are death and taxes. If you are over your head in tax debt and are unable to pay what is owing there are some things you need to know about what the CRA can and can’t do as well as what your options are.
The Canadian Income Tax Act allows the CRA to do the following to collect tax debt:
- They can collect on an outstanding debt by freezing your bank account, taking up to 50% of your income.
- Freeze your personal bank account.
- Place a lien on your property.
- Garnish your wages.
- Order your bank to pay CRA from your funds.
- Old age security and disability pensions can also be garnished.
- If you are self-employed collection actions may differ.
Note that all this can be done by the CRA without going through the courts.
Things you can do!
- Put whatever money you have in a joint account. The CRA can only seize money from your account.
- Deal with your tax debt right away. The longer you wait the more interest and penalties you will face.
- Review Your Assessment. If you disagree with the amount the CRA says you owe you can file an objection with an appeals officer.
- Arrange an affordable repayment plan with the CRA as they are usually flexible.
- Get a professional opinion.
Lazard & Associates Tax Debt Services
Jean Lazard CEO of Lazard & Associates worked for the CRA for years and knows what the CRA can and cannot do while providing solutions to your tax debt. By speaking with Jean directly you will have confidence your find the very best tax debt solution. Why not give Jean office a call at 613-567-4357 today and arrange for your free confidential consultation.
