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 – to collect as much as possible as quickly as possible. They have many collection powers, but may mislead taxpayers as to what rights you may have.
You must be careful. 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.
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.