Tax Debt

Are you unable to pay your bills or operate your business due to your bank account being frozen by the CRA?

Having difficulty refinancing your home because the CRA has a lien on your property?

Are your not receiving your full pay cheque or amounts due from your clients because the CRA issued garnishments?

When you have past due taxes owing to the CRA or any provincial authority, they are of the belief that the debt is payable in full.

That is not the case.

While the tax authorities will continue to charge interest at an absorbent rate, it is possible to negotiate a repayment plan based on your financial ability.

Negotiating a payment plan in a timely fashion is in your best interest.

Collection officers are very aggressive and will come to your home or office with one purpose – collect as much as possible as quickly as possible. They have many collection powers, but may mislead taxpayers as to your rights are.

You must be careful as the CRA has a variety of means in which they can collect unpaid tax debt involuntarily. The most common mechanisms include:

  • Wage garnishing;
  • Imposing property liens;
  • Destroying your credit;
  • Forcing the sale of your home;
  • Freezing and/or seizing bank accounts;
  • Intercepting monies payable to you; and
  • Seizing your assets.


Contact a lawyer at Rosen Kirshen Tax Law to find out what options you have. We can help negotiate the removal of legal action that CRA has initiated, including: personal property liens, salary garnishments, requirements to pay and unfreeze seized bank accounts.


CRA Resources

Collections at the CRA

Tax Collections Policies

Prescribed Interest Rate 



I Owe Money to the CRA – What do I do?


This posting provides information of a general nature only.  It does not provide legal advice nor can it or should it be relied upon. All taxation situations are specific to their facts and will differ from the situations in the articles and postings. If you have specific legal questions you should consult with a lawyer.