Problems With Canada Revenue Agency Collections?
It doesn’t have to be scary when dealing with CRA collections. However, if you have trouble paying your tax debt in full or on time, or you are unable to manage a monthly payment, we’ve got experience in dealing with CRA and we may be able to help.
CRA Collections Help
Wage Garnishment?
It is a legal means whereby CRA can send a requirement to pay to your employer, bank etc. to redirect funds to them to deal with the amount outstanding.
CRA Lien
If you can’t pay in full the sums of money you owe to CRA and are worried about CRA and need to know how to resolve a CRA garnishment, we can help. Call us today for free information on how to avoid CRA garnishment or liens.
No More Debts
If you can’t pay in full the sums of money you owe to CRA and are worried about CRA and need to know how to avoid CRA garnishment, we can help. Call us today for free information on how to avoid CRA garnishment or liens.
CRA Seize Assets
CRA has the ability to seize your assets (car, boat, cottage, art work etc.) including bank accounts.
A Quick Video to Shed Some Light on CRA Collections.
Expert CRA Collections Advice
You are not alone: millions of Canadians are struggling to pay their tax
According to CBC, Canadians owe close to $44 billion in tax, and half of that is owed by individual Canadians.
This means that although most Canadians are filing their tax returns each year, they are struggling to pay the tax they owe on time. If you are not paying in a timely manner the monthly interest will cause the outstanding balance to increase tremendously. If you are struggling financially and just don’t know how to handle your outstanding tax debt, you’ve come to the right place.
At Sheriff Sole and Madej, Inc, we’ve been helping clients to manage and even clear their debts for over 20 years. So let’s start with handling your CRA Collections process. Then talk to us about a personalized credit counseling and budgeting program, so that you can go forward with peace of mind, knowing that you have all the information you need to live a financially stable life.
You have a right to representation when you deal with CRA Collections
The law allows you to have a representative of your choice to deal with CRA Collections if they contact you. We recommend that you engage a professional to help you with your tax debt. Here at Sheriff Sole and Madej, we’ve been in business for over 20 years and we’ve worked with over 10,000 clients to resolve their debts. We are experts in CRA Collections, and we’re here to help you.
You must take action, because your debt with CRA is different to other debts
The most important thing is not to ignore CRA Collections when they contact you. Whether you are a business or an individual, CRA is allowed to call you or even visit you at your home or place of work. While other people or companies that you owe money to may agree to reduce your debt so that they get some payment, CRA Collections almost never do this.
By law, Canada Revenue Agency has wide-ranging powers to ensure that taxes are collected. CRA is allowed to garnishee (claim) up to half of your wages or salary, freeze your bank account and eventually take the funds, or apply for a lien (right to ownership) on your home or other property you own. CRA can even claim your investments, send a Sheriff to seize your personal property and auction it off, or force other people or companies that owe you money to pay it to CRA instead of to you.
You may have heard that tax debts have a 6- or 10-year limitation. However, don’t think that you can simply avoid paying your taxes because of this. The moment CRA takes any steps to collect your debt within the limitation period, the clock resets and they have another six or 10 year period in which they may pursue you! And if during that time you acknowledge the debt in writing, it may also reset the clock.
So, our message to you is: “Don’t ignore your tax debt with the Canada Revenue Agency”. Act now.
There are options when you deal with the CRA collections process
Of course, it’s always best to pay all the tax you owe at one time – you’ll save on interest, penalties and even avoid possible legal problems. But sometimes life takes over, and it becomes impossible to honor this commitment. So you have options to pay your debt to CRA, and that’s where Sheriff, Sole and Madej, Inc can help you. We carefully analyze your financial position and can advise you on the best action for your personal circumstances. Take a look at your options below.
What is the difference between interest and penalties levied by CRA?
CRA will charge your interest charge at the prescribed rate and it is compounded (multiplied) daily. Interest is charged on your entire tax debt, which may include penalties.
On the other hand, penalties are usually applied when you are assessed (or reassessed) after filing tax returns, and may be added to your debt when you submit a tax return after the deadline, fail to report income, or knowingly making a false statement on your return. Penalties do not increase with the amount of time you have had a tax debt but may attract interest like the rest of your tax debt.
What Are Your Options When Dealing with CRA Collections?
Option 1: Challenge your assessment
If you think your assessment is too high, or CRA has made a mistake with their calculations, we may be able to help you reduce your debt to a manageable level. We would help you challenge your tax assessment by filing a Notice of Objection. In some situations, this can even be done after the usual three year period to lodge objections has passed.
CRA Collections is not allowed to apply to Federal Court for an order against you if you have unresolved objections. So this could give you time to try and resolve your debt.
Option 2: Make a payment arrangement
When you make a payment arrangement, the CRA agrees to divide your debt up into a number of equal monthly payments. We help you complete the financial questionnaire that CRA needs in order to make a payment arrangement. The kind of information you have to provide is your income, your household expenses, other debts, and your assets, for example, property, cars, jewelry and investments.
Before they consider your application, you will need to prove to CRA that you have tried to reduce your expenses or take out a loan to pay the debt.
CRA usually reviews payment arrangements every six months, so it’s a good idea to keep your financial information up to date so that it’s easy to resubmit regularly.
Remember, once you have a payment arrangement with CRA, you must never miss a payment, otherwise it will be cancelled. You also have to file your tax returns within the deadline, to keep your payment arrangement valid.
Option 3: Apply for tax forgiveness because of financial hardship
Tax forgiveness can take the form of waiving or canceling of all or part of your interest or penalties. The CRA Collections process allows for this when you have not made payment or submitted your tax return on time because of circumstances beyond your control, especially if they cause you financial hardship.
If you have lost your job or paying the interest and penalties would mean you don’t have money left over for basic necessities like food, rent and healthcare, you may be eligible for tax forgiveness. You may also qualify if you have been the victim of a flood, fire or other natural or man-made disaster, had a serious illness or been in accident, or suffered serious emotional distress, such as a death in your immediate family.
Option 4: File for bankruptcy
Tax forgiveness can take the form of waiving or canceling all or part of your interest or penalties. The CRA Collections process allows for this when you have not made payment or submitted your tax return on time because of circumstances beyond your control, especially if they cause you financial hardship.
If you have lost your job or paying the interest and penalties would mean you don’t have money left over for basic necessities like food, rent, and healthcare, you may be eligible for tax forgiveness. You may also qualify if you have been the victim of a flood, fire, or other natural or man-made disasters, had a serious illness or been in an accident, or suffered serious emotional distress, such as a death in your immediate family.