Based on the number of inquiries I have received recently, the Canada Revenue Agency (“CRA”) is getting more aggressive in their collection proceedings. The CRA has the right to freeze and seize bank account funds, garnish income and send third-party demands to recover their debt. If you owe money to the CRA for personal income tax, CERB, HST or source deductions that you are struggling to repay, reach out to a Licensed Insolvency Trustee to discuss solutions.
Solutions
Amounts owing to the CRA can be discharged in a personal bankruptcy or consumer proposal unless they have previously registered a lien on the title of your property.
Further, a bankruptcy or consumer proposal will stop a garnishment of your wages or pension.
If you operate a business and deduct withholdings from your employees, the CRA may have a deemed trust claim against your assets. If you are a director of a corporation and the company does not pay outstanding HST and source deductions, the CRA can assess you personally for the outstanding amounts. This director’s assessment liability can be included in a personal bankruptcy or proposal.
Bankruptcy isn’t the only solution to deal with overwhelming tax debt. The CRA will accept a proposal to compromise your debt if the terms are fair and reasonable and you are current on all outstanding tax returns.
Taylor Leibow Inc. offers a free initial assessment to review your financial situation in detail and explore solutions. Don’t let your wages continue to be garnished or hide from tax debt – reach out to us today. We are ready to talk when you are.
By Kathy Lenart – Insolvency Partner, Licensed Insolvency Trustee
CPA, CA, CIRP
Canadian Association of Insolvency and Restructuring Professionals (CAIRP)
Leave A Comment